Ann: $7.3 million capital raising to accelerate El Zorro, page-35

To be fair, it was back in August 2020 that it was the first time the company telegraphed that their aspiration was to have a resource large enough to support an operation that could produce 100koz x 10yrs. They have been very consistent with this goal and it has not changed. The only speculation from investors would be how big of a global resource (constrained or unconstrained) it would need to be in order to achieve this goal? and what would the interim resource at MRE look like?

Yes, the MRE number was lower than what most expected. I personally was expecting something higher. The exclusion of the 250koz unclassified resource due to requiring additional data density drilling didn't help sentiment and it wasn't known that there was an easy 250koz to convert on the MRE announcement, it was announced the day after. But has anything materially changed with the strategy, goals and aspirations Post Mre? No.

They're aiming for a resource upgrade of a minimum a 1Moz @ 1-1.2g/t of a pit constrained resource to support the study. This will provide investors will a high level gauge on what a 100koz x 10yr operation is going to look like in Chile.

Question investors should be asking is - do they believe that Post MRE the infill drills have converted and increased enough of the resource to hit the hurdle. In my view, some of our best drill intercepts have been post MRE and with most outside of the MRE resource zones. You can gauge by accessing the intercepts shown on the various sections.There are about 16 sections that are cut through the pit shell. So there is plenty of info there.

There is a section -100m which appears to be fresh from what the current resource block model looks like. When you compare it to Sections -80m & -120m, infill drilling Post Pre appears to be filling out the pit nicely. So, it indicates that there is significant improvement Post Mre.



There has been about 243 Holes drilled to date. That is 95 holes Most the MRE Cut-ff of 148holes.

Plus even if you assume that there is no take up in the SPP, with the amount of cash budged for drilling, the company is still funded to drilled another 100-110 holes.

So that is a total of around an additional 195-205 Holes, that are Extra-Over to the 148 holes that the MRE was based on. I personally, think they can hit their goal easily and hopeful that the step out drills into the regional targets will deliver some significant intercepts to prove conceptually that their is a 2nd deposition and future scalability.

There are alot of significant completed drills with assays to come that could have material impact on the increase in scale potential.



What they have been promoting is how good their preliminary met test results are and why not? at a 200 micron grind size and recoveries of 94% after 8 hours and seeing tails grades of 0.07g/t. I'm sure they are the best mets on the ASX by an explorer announced in over the past few years.

I don't think they are that far away as some may think of them achieving what they have set out to achieve and if they are able to hit this, I guess the question is ---- how much would a company with an asset that is able to produce 1Moz of recovered goal, great mets, located in a tier 1 jurisdiction, that is located in less then 1.5hrs drive from 2 nearby towns with a strong mining workforce and with access to power, water, port all in less then 20kms from the site?

The only hurdle and it is a fairly small hurdle is just getting that resource just a little bit bigger to kick it into the next phase of development.

So wishing the team on the field the best of luck and hopefully some of the step out drills return some significant intercepts!