Ann: Lana Corina Drill Results Extended - 454m @ 0.93% CuEq, page-18

Interpretation of Drill Hole CMLCD014 Results

Overview:Drill hole CMLCD014 has yielded significant copper and molybdenum mineralization over substantial intervals. The results indicate the presence of a high-grade breccia and porphyry-hosted mineralized system at Lana Corina, with significant potential for further expansion

Significant Copper and Molybdenum Mineralization:

1. • The results show extensive copper and molybdenum mineralization over long intervals, with the highest copper equivalent (CuEq) reaching 1.24% in a 78m sub-interval. These grades are economically significant, indicating the potential for profitable mining operations.

2. High-Grade Zones:

   • High-grade copper zones within the broader intervals suggest potential for selective mining to maximize economic returns. The sub-intervals with higher CuEq values highlight areas of concentrated mineralization.

3. Molybdenum Potential:

   • The delineation of high-grade molybdenum within the same drill hole, particularly the 46m interval with 1638 ppm Mo, indicates additional value from molybdenum, enhancing the project's overall economic feasibility.

4. Geological Continuity:

   • The consistency of the 454m mineralized interval supports the geological model of a large, continuous breccia and porphyry-hosted system. This continuity is crucial for resource estimation and mine planning.

5. Open Mineralization:

   • The mineralized zone's expansion to a surface-projected footprint of 600m x 400m and to a depth of 800m, with mineralization remaining open in all directions, suggests significant potential for resource expansion. Ongoing and planned drilling could further delineate the extent of this mineralization.

6. Strategic Importance:

   • The presence of high-grade copper and molybdenum, combined with the large-scale mineralized system, positions Lana Corina as a strategically important project. The potential for expanding high-grade zones and discovering new mineralized areas enhances its attractiveness for further investment and development.

Economic Viability of the Grades

Copper Grades:

• Overall Interval (90m to 544m - 454m):

  • Copper (Cu): 0.79%
  • Copper Equivalent (CuEq): 0.93%
  • This long interval with an average copper grade of 0.79% is robust for a porphyry system. Copper grades above 0.5% are generally considered economically viable, especially in large, bulk-minable deposits like porphyry systems.

• High-Grade Sub-Intervals:

  • 200m to 278m (78m):
    • Cu: 1.16%
    • CuEq: 1.24%
  • 320m to 388m (68m):
    • Cu: 1.09%
    • CuEq: 1.14%
  • 394m to 434m (40m):
    • Cu: 1.14%
    • CuEq: 1.20%
  • These high-grade intervals are economically significant. Copper grades above 1% are highly attractive, especially for large-scale mining operations. The presence of such high-grade zones within broader mineralized intervals suggests excellent potential for selective mining, which can enhance project economics by focusing on higher-grade material.

Molybdenum Grades:

• 498m to 544m (46m):

  • Molybdenum (Mo): 1638 ppm (0.16%)
  • Copper Equivalent (CuEq): 0.68%
  • Molybdenum grades around 0.1% and above are considered economically viable, particularly when present alongside copper. The 0.16% molybdenum grade over 46 meters is very promising and adds significant value to the project.

• Other Molybdenum Intervals:

  • 580m to 610m (30m):
    • Mo: 613 ppm (0.06%)
    • CuEq: 0.43%
  • 720m to 758m (38m):
    • Mo: 748 ppm (0.07%)
    • CuEq: 0.32%
  • These intervals, while lower in grade compared to the 1638 ppm interval, still contribute to the overall economic potential, especially when considering molybdenum's high market value.

Additional Metals:

• Silver (Ag):
  • The presence of silver with grades up to 7.28 ppm adds further economic value. Silver can provide a significant by-product credit, reducing overall production costs.
• Gold (Au):
  • Although the gold grades are low (0.01-0.02 ppm), any additional revenue from gold by-products contributes positively to the project's economics.

Geological Considerations:

• Breccia and Porphyry System:
  • The high-grade breccia and porphyry-hosted system is conducive to bulk mining methods. The large, continuous mineralized intervals support efficient mining operations with potentially lower operating costs.

Economic Viability Summary:

• Copper Grades:
  • The overall copper grades are well within the range of economically viable porphyry copper projects. High-grade zones exceeding 1% copper further enhance the project's attractiveness.
• Molybdenum Grades:
  • The significant molybdenum grades, particularly the 1638 ppm interval, add considerable economic value. Molybdenum is a valuable by-product that can substantially improve the project's profitability.
• Additional Metals:
  • The presence of silver and minor gold provides additional revenue streams, enhancing the overall economic potential.

Conclusion:The drill results from CMLCD014 are highly promising, indicating a substantial and economically viable copper-molybdenum system at Lana Corina. The presence of extensive high-grade zones, continuity of mineralization, and potential for further expansion make this project a valuable asset. Continued exploration and drilling are recommended to fully assess the scale and economic potential of the mineralized system.

The grades reported for drill hole CMLCD014 are economically viable and highly promising. The combination of substantial copper and molybdenum grades, along with additional silver and gold, indicates a robust mineralized system with significant potential for profitable extraction. The project's large scale and geological continuity support its economic viability, making it an attractive target for continued exploration and development.