Sonoro Gold is a publicly listed exploration and development company with a portfolio of exploration-stage precious metal properties in Sonora state, Mexico. The company has highly experienced operational and management teams with proven records for the discovery and development of natural resource deposits.
June 2021 - Sonoro Gold - Summary Cerro Caliche Focus
1. June 1, 2021
408-470 Granville St., Vancouver, BC V6C 1V5 | 604.632-1764 info@sonorogold.com | www.sonorogold.com
A DYNAMIC GOLD COMPANY WITH HIGH GROWTH POTENTIAL IN MEXICO
(Note: This document contains certain "forward-looking statements" within the meaning of Canadian securities legislation, with respect to
the Company’s plans and forecasts for its Cerro Caliche Project. Readers are cautioned to review the qualifications at the end of this
document regarding such forward-looking statements)
PRIMARY ACTIVITIES:
Gold mine development; mineral deposit
discovery and exploration
MANAGEMENT:
Proven track record in the discovery and
development of natural resource deposits
EXPERIENCE:
Collectively discovered and developed 12 gold
and copper mines
FINANCES:
CAD $ 3.11 Million Financing April 2021
CAD $8 Million Financing August 2020
FLAGSHIP:
Cerro Caliche Gold Project - Cucurpe Gold Sub-
district, Sonora State, Mexico.
COMPANY HIGHLIGHTS
✓ Secured CAD $11.11 M Financing
✓ 2020 – 2021 Drilling Program
➢ 48 Core Drill Holes x 6,015 m
➢ 170 RC Drill Holes x 18,207 m
➢ 11 PQ Drill Holes x 712 m for Metallurgical Testing
➢ Expansion of Several Gold Mineralized Zones
➢ Identified New & Higher-Grade Gold Mineralized Zones
➢ Shallow Zones Confirm Oxide to Depth
✓ Total Drilling to Date 47,557 m (433 drill holes)
✓ McClelland Laboratories to complete Metallurgical Testing June 2021
✓ Micon International Ltd. to updated 43-101 Resource Report July 2021
✓ Engaged D.E.N.M. Engineering to publish 43-101 Preliminary Economic Assessment July 2021
✓ Environmental Permit for construction August 2021
✓ Mine Development Plan on Track & Budget for Production in Q1-2022
SUMMARY
In August 2020, Sonoro Gold closed an CAD $8 million financing and initiated an advanced drilling
campaign at the Company’s Cerro Caliche’s gold project in Sonoro, Mexico. The program
demonstrated a material expansion of the concession’s oxide gold mineralization and supports the
Company’s vision of a Heap Leach Mining Operation (HLMO) to commence operations in Q1-2022 with
a proposed operating capacity of 15,000 tons per day (tpd). In April 2021, Sonoro Gold closed an
oversubscribed CAD $3.11 million financing to further increase potential resource and confirm viability
of the proposed mining operation with the publication of an independent 43-101 compliant Updated
Technical Report and Preliminary Economic Assessment (PEA) scheduled for July 2021.
Trading Symbols
TSX.V: SGO
OTCBQ: SMOFF
FRA: 23SP
Price $0.29
Year-High $0.34
Year-Low $0.12
Average Monthly Volume 3.8 m
Market Capitalization $27.6 m
Current Issued & Outstanding 102.37 m
Warrants 56.20 m
Stock Options 9.95 m
Shares Fully Diluted 168.52 m
2. June 1, 2021
408-470 Granville St., Vancouver, BC V6C 1V5 | 604.632-1764 info@sonorogold.com | www.sonorogold.com
BACKGROUND
In January 2018, Sonoro Gold, through its wholly owned Mexican subsidiary Minera Mar De Plata,
SA de C.V., entered into the first of five option agreements to acquire a 100% interest in the Cerro
Caliche Group of Concessions. The 1,400-hectare property is strategically located between the two
world-class mining districts of the Sierra Madre Gold Belt and the Sonora-Mojave Megashear.
Approximately 45 kilometers from the town of Magdalena de Kino, the Cerro Caliche gold concession
is surrounded by several gold-silver mining operations, including Premier Gold’s Mercedes mine and
Agnico Eagle’s recently acquired Santa Gertrudis mine. Sonora is one of Mexico’s leading mining states
and is also an important producer of gold (24% of Mexican gold production), silver, copper, iron and
non-metallic minerals. Low-cost available workforce, first-class infrastructure and pro-mining climate
has positioned Sonora as a premier mining destination.
The Company initiated a 10,000-meter drilling program in September 2018 outlining shallow, bulk
tonnage gold and silver mineralized zones with grades similar to operating heap leach mines in the
region. On July 26, 2019, a NI 43-101 technical report1
was filed with an estimated inferred resource
(at a 0.25 g/t gold equivalent cut-off grade) of 11.5M tonnes at an average grade of 0.495 g/t gold and
4.3 g/t silver amenable to open pit extraction methods.
When combined with the current drilling program, as of April 2021, the Company has drilled and
assayed over 34,500 meters and 314 holes, including over 25,000 meters since September 2020. With
historical data, total exploration of the Cerro Caliche property totals over 45,312 meters and 418 drill
holes.
MAJOR GOLD MINERLIZATION ZONES
Exploration at Cerro Caliche has identified a broadly mineralized low-sulphidation epithermal vein
structure and the presence of at least 18 northwest trending gold mineralized zones along trend and
near surface. Recent drilling by the Company further confirmed material expansion and strategic
extension of several mineralized zones outlining four major parallel northwest trending gold zones:
1. El Rincón - Veta de Oro - Abejas Gold Mineralization Zone
Drilling at El Rincón, located in northwestern region of the concession, confirmed a southeast
strike of continuous mineralization of approximately two kilometers. From El Rincón,
mineralization extends one kilometer to the Veta de Oro zone and then another 500 meters along
a zone of vein stockwork to the Abejas zone. Future drilling will investigate a possible further
extension of 500 meters to the southeast to include the historic mining area at the Chinos Altos
zone.
El Rincón remains open along strike to the northwest following outcropping quartz veins and infill
drilling focused on linear zones of disseminated-stockwork and higher-grade gold bearing veins
along El Rincón’s southeastern striking trend.
Assay Highlights are as follows:
• SCD-015 intercepted 16.25 m averaging 0.67 g/t Au; including 3 m averaging 2.09 g/t Au
• SCD–020 intercepted 20.95 m averaging 0.50 g/t Au; including 1.65 m averaging 2.50 g/t Au
• SCD–021 intercepted 21 m averaging 0.88 g/t Au; including 2.9 m averaging 3.86 g/t Au
• SCD-034 intercepted 4.90 m averaging 1.22 g/t Au; including 2.0 m averaging 2.35 g/t Au
2. El Colorado - Cabeza Blanca Gold Mineralization Zone
El Colorado and Cabeza Blanca are located along an extensively mineralized east-west trending
ridge in the southwestern part of the Cerro Caliche property. Drilling at El Colorado has outlined
a high-grade gold mineralized zone which remains open in all directions. Gold bearing veins in
1
NI 43-101 Technical Report on the Cerro Caliche Property, July 26, 2019, Strickland, D., Sim, R.C. prepared for Sonoro
Metals; 11,5 Mt at avg 0.5 g/t Au + 4.3 g/t Ag containing 200,000 oz at 0.545 g/t AuEq.
3. June 1, 2021
408-470 Granville St., Vancouver, BC V6C 1V5 | 604.632-1764 info@sonorogold.com | www.sonorogold.com
this zone depart from the uniform northwest-prominent trend of the district and exhibit
numerous splays and abrupt directional changes in the vein trends.
Assay Highlights for El Colorado are as follows:
• SCD-016 intercepted 11.25 m averaging 1.08 g/t Au; including 1.0 m averaging 2.88 g/t Au.
• SCD-024 intercepted 5.7 m averaging 1.25 g/t Au; including 0.9 m averaging 6.22 g/t Au.
• SCR-234 intercepted 16.77 m averaging 1.84 g/t Au; including 4.57 m averaging 5.63 g/t Au;
including 1.52 meters averaging 14.60 g/t Au.
• SCR-239 intercepted 7.62 m averaging 2.43 g/t Au; including 1.52 m averaging 10.6 g/t Au.
Veins from the El Colorado zone connect northward mainly with the Cabeza Blanca vein zone
suggesting a continuous strike length of over one kilometer. Recent drilling at Cabeza Blanca
confirmed a 50-meter extension to the north providing a more detailed understanding of the zone.
Assay Highlights for Cabeza Blanca are as follows:
• SCD-008 intercepted 11.7 m averaging 0.92 g/t Au; including 4.55 m averaging 1.84 g/t Au.
• SCD-030 intercepted 9.3 m averaging 0.719 g/t Au; including 1.8 m averaging 1.89 g/t Au.
• SCR-245 intercepted 3.05 m averaging 1.118 g/t Au; including 1.52 m averaging 1.99 g/t Au.
• SCR-256 intercepted 12.19 m averaging 1.07 g/t Au; including 4.57 m averaging 2.10 g/t Au;
including 1.52 meters averaging 3.701 g/t Au.
3. Buena Suerte Gold Mineralization Zone
The Buena Suerte zone is located 100 meters west of the Japoneses mineralized body discussed
below. Drilling at Buena Suerte has confirmed a length of 900 meters and the presence of
numerous vein splays. High-grade intercepts demonstrate wider zones of stockwork to
disseminated forms of mineralization with interval widths ranging from 10 meters to 74 meters.
Recent drilling confirmed a 200-meter-long, high-grade zone in the northwest extension as well
as a 100-meter-long, high-grade vein splay, in the southwest extension.
Assay Highlights are as follows:
• SCR-109 intercepted 45.72 m averaging 0.97 g/t Au; including 15.24 m averaging 2.1 g/t Au.
• SCR-148 intercepted 27.44 m averaging 1.17 g/t Au; including 3.05 m averaging 4.696 g/t Au.
• SCR-219 intercepted 16.76 m averaging 1.43 g/t Au; including 1.52 m averaging 6.475 g/t Au.
• SCR-223 intercepted 74.67 m averaging 0.605 g/t Au; including 1.52 m averaging 1.53 g/t Au;
including 1.52 m averaging 3.677 g/t Au; including 1.52 m averaging 2.305 g/t Au.
4. Japoneses - Cuervos Gold Mineralization Zone
The Japoneses zone is the largest mineralized gold zone on the Cerro Caliche concession with
dimensions of up to 300 meters wide by 550 meters long. Drilling results demonstrate a southeast
extension to the Cuervos zone, confirming a continuous strike length of 1.3 km. This entire
mineralized zone is a series of northwest-trending veins, shears and shatter bands in quartzite
with shales in its central and southern parts. The northern extension of the Japoneses zone passes
into andesite and vein associated rhyolitic dikes where both rock units host gold mineralization.
Assay Highlights are as follows:
• SCR-104 intercepted 15.24 m averaging 1.28 g/t Au
• SCR-105 intercepted 9.14 m averaging 1.13 g/t Au
• SCR-106 intercepted 16.76 m averaging 0.85 g/t Au
• SCR-136 intercepted 6.10 m averaging 2.03 g/t Au
Drilling results from the northern extensions of the Japoneses and Buena Suerte gold mineralized
zones suggest a potential convergence of the two zones. Furthermore, drilling results from the
western boundary of Japoneses confirmed the Buena Vista Vein Zone, a large fault and vein structure,
as a northwest extension of Japoneses zone. This is significant because to the immediate west of the
4. June 1, 2021
408-470 Granville St., Vancouver, BC V6C 1V5 | 604.632-1764 info@sonorogold.com | www.sonorogold.com
Buena Vista vein zone, the presence of outcropping quartz veins and stockwork demonstrate conduits
for the transportation of gold containing mineralizing fluids and likely confirm a western expansion to
the Buena Suerte gold mineralized zone.
In other words, Japoneses, Buena Vista and Buena Suerte may form a single body of shallow, oxide
gold mineralization. If confirmed, a single larger gold mineralized zone of approximately 650 meters
in width by approximately 700 meters in length may prove to have significant and positive economic
implications for the Company’s proposed HLMO.
HEAP LEACH GOLD MINING OPERATION
To move forward with the development of the proposed HLMO, the Company must complete
satisfactory metallurgical testing, file an updated NI 43-101 Technical Report and publish a favourable
Preliminary Economic Assessment (PEA). The Company must also obtain the required permits and
secure project financing.
Independent metallurgical testing is currently being conducted by McClelland Laboratories in Sparks,
Nevada on over 5,500 kilograms of mineralized material drilled from ten 85-mm diameter PQ core
holes. The testing focuses on the heap leach characteristics of the oxide mineralization and will
provide quantified estimates of gold and silver recovery as well as recommendations for crushing sizes
and associated process flow sheet development. Bottle roll testing was completed in late February
2021 and generated a recovery range of between 70% and 90%, with the average recovery rate
indicating 80.3%.
Ontario-based D.E.N.M. Engineering Ltd. (D.E.N.M.) has been engaged to prepare the PEA under the
direction of President David Salari, P.Eng and assess the viability of increasing the target conceptual
capacity of up to 15,000 tonnes per day (tpd). Mr. Salari is also responsible for coordinating the
metallurgical testing and the preparation of the updated Technical Report in conjunction with
Toronto-based Micon International Limited (Micon). Micon has been contracted and will be
responsible for the completion of the updated mineral resource estimate, which is scheduled to be
completed concurrently with the metallurgical testing during the second quarter of 2021.
The mineral resource estimate will include all prior and current exploration data up to April 2021.
Company management is confident the technical reports will confirm substantial increases in the size
and classification of the projected resource, while noting that to date, less than 20% of the Cerro
Caliche’s mapped gold mineralized zones having been drilled and assayed.
GEOLOGY
Mineralization types throughout the region include variants of epithermal low sulfidation veins and
related mineralized dikes and associated volcanic domes. Local altered felsic dikes cut the mineralized
meta-sedimentary rock units and may be associated with mineralization both in the dikes and meta-
sedimentary rocks. The district has historically been regarded as vein dominated but, recently, open
pit mining operations have been developed on disseminated and stockwork style gold mineralization.
Host rocks include Jurassic-Cretaceous meta-sedimentary rock units including argillite, shale,
quartzite, limestone, quartz pebble conglomerate and andesite. Younger intrusive rock consisting of
medium coarse-grained granodiorite-granite is present in the westerly parts of the concessions near
the historic Cabeza Blanca mine. It is apparent that veining cuts and pervasively alters the intrusive
stock. Rhyolite occurs in irregular bodies distributed in higher elevations in the northerly part of the
concession, including the Rincón area where it occurs as flows, sills, dikes and rhyolite domes. Part of
the rhyolite is mineralized and appears to be related to epithermal gold mineralization throughout the
property.
5. June 1, 2021
408-470 Granville St., Vancouver, BC V6C 1V5 | 604.632-1764 info@sonorogold.com | www.sonorogold.com
The image below illustrates a 900-meter longitudinal section of selected drill holes at Buena Suerte.
The image below illustrates a 300-meter cross section of selected drill holes at El Colorado.
6. June 1, 2021
408-470 Granville St., Vancouver, BC V6C 1V5 | 604.632-1764 info@sonorogold.com | www.sonorogold.com
Forecast Timeline to PEA & Possible Production by Early 2022
(Published June 1, 2021)
May 2021
• Confirm High-Level “Scoping Level” CapEx costs for Resource Mineral Study
• Confirm “Scoping Level” OpEx costs for Resource Mineral Study
o Submit confirmed costs to Gildardo Vejar
• Final Assays and Composites of RC Drilling Program (Completed April 30tht
)
• Revised Resource Estimate & Block Model Reports by Hector Mendivil
o Upload reports to data room for Micon and D.E.N.M
o Submit to Gildardo Vejar
• News Release announcing Final Assays of Phase III RC Drilling Program
• Ensure all geo data and exploration reports received Micon and D.E.N.M
• 75th
- day of Column testing (Recovery Rate) by McClelland Labs (May 31st
)
• Surface Rights Agreement Negotiations
• Continue negotiations with project lenders
June 2021
• Revised Mining Resource Study by Gildardo Vejar
o Preliminary Mine Plan
✓ Mining Operation & Mining Cost
✓ Pit Delineated Gold Mineralized Estimate
✓ Mine Plan Schedule
✓ Capital & Operating Cost Estimate
✓ Operating Cost Estimate
✓ Power Consumption
o Upload report to data room for Micon and D.E.N.M
• Final Environment Studies/ Reports
o Judith Araujo
✓ Environmental Impact Statement
✓ Study for Land Use Change
✓ Environmental Risk Study
• Submit MIA Application (Part I: Change in Land Use) to SEMARNAT
• Finalize terms on Surface Rights Agreement & Water Rights
o Surface Rights Agreement Board Approval
• Sign Surface Rights Agreement
o News Release announcing Land Agreement & Water Rights
o File Material Change Report with Exchange
• Submit MIA Application (Part II: Environment Permit) to SEMARNAT
• Complete column stripping and tail assays by McClelland Labs (June 30th
)
• Continue negotiations with project lenders
July 2021
• News Release announcing submission of application
o File Material Change Report with Exchange
• Metallurgical Draft Report by McClelland
• Metallurgical Testing Report Complete
o News Release Announcing Met Testing
• Micon 43-101 Estimate Resource Draft Report
7. June 1, 2021
408-470 Granville St., Vancouver, BC V6C 1V5 | 604.632-1764 info@sonorogold.com | www.sonorogold.com
• File Updated Technical Report
o News Release announcing Filing of Updated Tech Report
o File Material Change Report with Exchange
• D.E.N.M. Draft Preliminary Economic Assessment
• File Preliminary Economic Assessment
o News Release Announcing PEA
o File Material Change Report with Exchange
• Project lenders Short List
o Single or syndicate of lenders?
• Finalize Mine Plan
August 2021
• Finalize Project Financing
o Structure & Terms
✓ purpose clause
✓ drawdown requirements
✓ repayment formulas
✓ representations and warranties
✓ covenants
✓ default provisions
o Board Approval
• Restart RC Drilling Program
o Boundaries of converging zones
o On-strike extensions
o Increase resource size and classification
o High-grade targets
o News release announcing restart of drilling
• Local Community Initiatives (minimal due to remote site)
• Government Relations initiatives
September 2021
• Sign Project Financing Agreement
o News Release Announce Project Financing
o File Material Change Report with Exchange
• Obtain Environmental Permit
o News Release announcing receipt of MIA
o File Material Change Report with Exchange
• Pre-Construction Phase
o Contractor/equipment agreements
o Site prep (land & environmental management)
o Recruit/ train construction crew
o Crew accommodation
• Community/ Government Relations
October 2021
• Commence Construction of an HLMO
o New Release announcing construction
o File Material Change Report with Exchange
• Community/ Government Relations
8. June 1, 2021
408-470 Granville St., Vancouver, BC V6C 1V5 | 604.632-1764 info@sonorogold.com | www.sonorogold.com
CAUTION regarding forward-looking information:
This this forecast timeline of events contains certain "forward-looking statements" within the meaning of
Canadian securities laws, with respect to the Company’s plans for its Cerro Caliche Project, located in the
municipality of Cucurpe, Sonora, Mexico (the “Project”) over the next 12 months, including:
• a forecast timeline for additional exploration drilling and assaying, and the announcements of the
associated results;
• evaluation of the Company’s 2021 financing requirements and options, and completion of one or more
financing transactions;
• completion and publication of an updated mineral resource estimate;
• carrying out complementary analyses, assessments, budgeting and planning to support the preparation
of a proposed preliminary economic assessment (PEA) of the Project;
• the negotiation of key agreements necessary to support possible future production at the Project,
including agreements providing surface rights and water rights;
• subject to a completion of a favourable PEA establishing the economic viability of production at the
Project, preparing and making submissions for the permits and licenses required for mining operations;
and
• construction and commissioning of a mine at the Project.
The forward-looking statements in this document are statements reflecting the Company management’s
forecasts about future planned and aspirational events; they are not statements of historical facts. Although the
Company believes that such statements are reasonable based on current circumstances, it can give no assurance
that such expectations will prove to be correct. By its nature, early-stage mineral exploration and development
projects carry a significant amount of risk, and often are delayed, disrupted or fail altogether, due to poor
exploration results and other unanticipated factors. The Company cautions that this forecast timeline of events
is based on the beliefs, estimates and opinions of the Company's management on the date that this document
was published and they involve a number of risks and uncertainties, including:
• unanticipated geological, technical or other factors may result in planned exploration drilling taking
longer than expected to complete or requiring more drilling work than is presently planned to support
the Company’s plans for the Project;
• unfavourable interim exploration results may impair the Company’s options for additional financing or
otherwise require the Company to reassess, curtail or abandon its plans for the Project;
• independent of the exploration results achieved, financial market conditions may impair the Company’s
ability to secure the additional financing required to execute on its plans for the Project;
• the Company may not be successful in securing the necessary surface and water rights for the Project,
or the cost and time associated with securing such rights may result in material delays in the Company’s
plans;
• exploration results and related testing may not be sufficient to support a positive PEA of the Project;
• the Company may encounter political risks or other unanticipated changes in the legal, regulatory and
permitting requirements for the Company’s exploration and development programs.
There can be no assurance that such statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Except as required by the securities laws and stock exchange policies
applicable to the Company, the Company does not assume any responsibility to update the forecasts contained
in this document. Readers are urged to review and monitor the Company’s complete public disclosure recorded
on SEDAR (www.sedar.com).