Sonoro Gold Corp by Mexico Business Publishing

COMPANY REPORT

Company Report Table of Content

View From the Top Melvin Herdrick | Vice President of Exploration | Sonoro Gold Corp

Analysis Promising Gold Deposit in Sonora Might See Resource Grow

Analysis Sonoro Gold Reports Promising Assay Results

Analysis Sonoro Gold Launches Metallurgical Testing

Analysis 2021 Shapes Up to Be Exceptional for Sonoro Gold

Analysis Sonoro Gold Announces 2020 Drill Program Positive Results

Analysis Sonoro Gold Discovers New Potential at Cerro Caliche

View From the Top Jorge Diaz | Vice President of Operations | Sonoro Gold Corp

Analysis Sonoro Gold Announces Promising Drilling Results

Analysis Cerro Caliche Is Sonoro’s Future Cash Machine Opportunity

Analysis Private Placement to Boost Sonoro’s Cerro Caliche Project

Analysis Cerro Caliche on Track for Near-Term Gold Production

Analysis Sonoro Gold Stands Out in the Junior Gold Mining Sector

Analysis Equity Research Group Touts Sonoro Gold

Spotlight Sonoro Gold Corp: Ideal Balance Between Risk, Reward

VIEW TOP Sonoro Gold Corp | Company Report | 4

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Q: What is your experience in the discovery and development of resource deposits? A: I have been in Mexico for about 25 years, or half of my career. The other half of my career was spent in the Northwestern US where I worked for large companies that explore for gold, silver and copper. In Mexico, the environment for gold and copper exploration has been good and encouraging. Meanwhile, silver is often found as an associated mineral and that has been the case for Sonoro. We have some silver associated with the gold mineralization that we found at Cerro Caliche and San Marcial. Our long-term project is San Marcial, while in the short term we are working to develop and ensure that the resource is very well defined in Cerro Caliche. Q: In addition to your experience and leadership, what characteristics make Sonoro a truly modern exploration company? A: This is due mainly to its people. We have a very good quality team, mostly local workers and well-trained geologists and engineers who have a great deal of experience with other mines that have been developed and are in production in Sonora, as well as other states. I think we have a group of people who are really competent and with very good skills for this project.

Melvin Herdrick

Technologically, Sonora is a very strong industrial city. It is a developing labor state and its industry is really strong. The local communities are also well trained, experienced and can operate heavy equipment. Contractors are available, their

Vice President of Exploration | Sonoro Gold Corp

prices are very reasonable and their skills are very good. Sonora is a great place for us to work. Q: How are Sonoro Gold’s ESG efforts also being implemented in Cerro Caliche’s

Sonoro to Become a Producing Mining Company in 2021

exploration and development program? A: Depending on the size of the program, we initiate permitting procedures that verify the condition of the land and establish limits that we need to maintain to affect it as little as possible. We have to know the impact that our project will have on the land and nearby communities. Most of the time we have to adapt the land to be able to build our project, roads and other infrastructure. Our goal is to reduce our negative impact and address the possible damage that we may cause. For example, we plant seeds to return vegetative growth to areas where the soil has been affected. Sonoro believes that if we build a mine, it will be for the long term and we ensure that its development allows a good future for the area and its resources, such as water. Therefore, if there is an area where process chemicals are used, we will monitor it and make sure it is highly protected to prevent leaks. If we find leaks, we have plans in place to control and address the damage it may cause. These measures are part of our development plan for the mine, as we intend to be very careful so that instead of having a negative impact, we have a positive one. In addition, we always try to add eight to

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10 years to the mine life so that communities can adapt and benefit from it as well. Many people from the community work at Sonoro and other mines. Mining is an industry that drives the economic development of Sonora and we want to be part of this development and help communities.

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Promising Gold Deposit in Sonora Might See Resource Grow Sonoro Metals has updated its Project Development Report, highlighting improvements at Cerro Caliche, in Sonora. Even though the updated document is not a technical report as defined by NI 43-101, it offers intel of high interest. The report references the near-surface potential to 75m depth for the identified vein zones within the concession and presents the potential for highergrade bonanza-style mineralization below the known shallow zone. “The revised version of our Project Development Report is an improvement. Its principal conclusions remain the same as the original report. However, as a consequence of adding supporting data to the report’s various technical disclosures, together with additional language as required by the latest NI 43-101 regulations, there is considerably more useful detail in the updated report,” said John Darch, Chairman and Director of Sonoro Metals, to MBN. The long-established low sulfidation epithermal gold mineralization model and the real-world data which Sonoro Metals has amassed are “a solid indication of the increased potential to materially grow the shallow gold resource while discovering and defining bonanzagrade gold veins deeper in the system,” Darch said. Analysis of higher-grade chip samples show that Sonoro Metal’s concessions contain a gold enriched area of low sulfidation epithermal (LSE) gold mineralization, which is common for gold mines in the region. Darch notes that “the company has only drilled shallow holes, yet LSE gold deposits often have demonstrably higher gold grades in their deeper mineralized zones – most notably, bonanza grade deposits at the deeper portion of the favorable zone.” Sonoro Metals plans to drill to evaluate Cerro Caliche’s deeper potential in its upcoming drill program. The updated report maps the location of Cerro Caliche LSE system’s favorable boiling zone, which suggests the possible locations for targeting bonanza gold grades within the deeper part of the system. Darch explained that “drilling totaling approximately 50,000m planned for 2020-2021 is designed in part to test the exploration target of between 75 million to 100 million tonnes with grades potentially between 0.3g/t to 0.5g/t gold equivalent, in addition to deeper drilling to test the potential for high-grade gold in the property’s vein systems.” Darch further notes that “should we intercept one or more high-grade gold veins, the bullish effect on our share price is clear.” The company decided to construct a heap leach pilot operation to avoid diluting its shareholders’ interest and to enable going into production and produce cash flow. The resource for supplying the pilot plant has already been identified. The pilot operation will be built by means of a financing arrangement with an engineering company. In this connection, Sonoro Metals has recruited New Tigers Consulting, a Chinese group. “To date, we are in advanced discussions with four EPC companies for the development of our proposed pilot gold operation but, due to the COVID19 travel restrictions, the timing is problematic for now,” he added. Until Read the complete article More about this topic

the pandemic lets up and fluid interactions with China are back on track, Sonoro Metals will focus on drilling the high-priority, deeper, high-grade gold targets it has identified.

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Sonoro Gold Reports Promising Assay Results Sonoro Gold Corp reported that assay results from an additional 20 reverse-circulation drill holes at its Cerro Caliche project in Sonora include several of the best gold grade intercepts recorded to date at the property. Sonoro expects that these results will contribute by establishing a significant addition to Cerro Caliche’s existing 201,000 AuEq inferred resource estimates. This group of drill holes has successfully enlarged the northwest and southeast extensions of the higher-grade mineralization at the now 450m long Buena Suerte zone, the company noted in a press release. They also extended the strike length of the Japoneses mineralized body. The Japoneses increase now demonstrates a continuous strike length of 1.3km. As in each of the previous 107 drill holes, all 20 of the current group of drill holes encountered reportable mineralization, Sonoro informed. With respect to the Buena Vista zone, the company explained that drilling confirms that it represents the uninterrupted northwesterly extension component of the Japoneses zone and it remains open along strike to the northwest. Multiple intercepts demonstrate mineralization to over 80m depth with deeper potential. Promising gold and silver results were also obtained at El Boludito and Cuervos zones. All drill holes are inclined 45 degrees crossing the intervals near perpendicular to the vein’s plane of mineralization, Sonoro noted. Interval true lengths are near the reported interval length but may be slightly less due to variations in vein zone dips. A cut-off of 0.15g/t Au was used for reporting intervals and, for consistency, is in the same format as in all previous news reports. “The evident success of the new RC drilling along with the parallel new exploratory core drilling that is oriented toward high grade targeting will be combined into a planned updated resource estimate in early 2021. We anticipate that news in December will also include results from core drilling at El Colorado, where the potential for shoot definition exists, in addition to other more exploratory findings from satellite zones,” “The apparent increase in gold grades and substantial intercept widths adds to our confidence regarding both the viability of our planned 8,000 ton per day mining operation which is targeted to commence production next December 2021 and our longer-term goal of materially increasing the size of the mineralized body and proposed mine by continuing to successfully explore and develop the property,” John Darch, Sonoro’s Chairman, added. The current exploration work is part of the company’s conceptual fast-track development schedule for the Cerro Caliche project. The goal is to commence gold production by the end of 2021. The successful realization of this goal is dependent on a set of milestones: the satisfactory completion of metallurgical testing, Read the complete article More about this topic

securing the required environmental permitting, receiving a favorable preliminary economic assessment (PEA) and obtaining the necessary project financing.

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Sonoro Gold Launches Metallurgical Testing Sonoro Gold Corp has secured the services of McClelland Laboratories Inc. to conduct independent metallurgical testing of the gold mineralization at the Cerro Caliche project in Sonora. Sonoro’s decision to conduct metallurgical testing speaks to its commitment to advance the project to commercial production. As part of Sonoro’s strategy to fast-track the development of a heap leach mining operation (HLMO) at Cerro Caliche, roughly 5.5 tons of mineralized material from 10 85mm-diameter PQ core holes are being shipped to the laboratory for metallurgical testing. With continuing success from the ongoing drilling program, Sonoro’s management has expanded its development plans from the previously announced pilot level project. The company is now assessing the economic viability of a proposed 8,000 ton per day (tpd) mining operation. New drilling suggests the resource is expanding substantially beyond the original 200,000oz. Therefore, confidence in doubling initial capacity from 3,950 tpd to 8,000 tpd is optimal. “Launching the metallurgical testing program represents an important advancement in the development of Cerro Caliche. We are also pleased to have engaged the services of McClelland Laboratories, a widely respected metallurgical testing firm with significant expertise in the successful planning of similar openpit heap leach mining operations in Sonora,” Kenneth MacLeod, Sonoro’s CEO, said. The testing program is focused on determining the heap leach characteristics of the oxide mineralization at Cerro Caliche. It will provide quantified estimates of gold and silver recovery from the various mineralized zones near surface and at depth. In addition, the metallurgical testing’s scope is sufficient to provide recommendations for crushing sizes and associated process flow sheet development. Preliminary column leach testing of at-surface mineralized material sampled from the project’s Japoneses Zone was carried out at a dedicated facility near Cerro Caliche by Sonoro in 2019. These tests, designed by a qualified metallurgist, demonstrated the material to be amenable to cyanide leaching, which will now be confirmed by McClelland Laboratories. The current testing program will take into consideration the gold mineralization’s characteristics. These are divided into two distinct metallurgical domains. First, hydrothermal vein quartz structures of variable thickness, varying from 0.10 to 5m. The vein structures present variable textures, from massive quartz with some vuggy quartz zones to gray quartz. They are mostly related to fault zones with resulting breccias and silicified zones in the hosting rocks: higher grade intercepts are being discovered in these zones. The second metallurgical domain corresponds to veinlets-stockwork mineralization with relatively lower average gold grades. These are zones with erratic and irregular quartz narrow veinlets varying from 0.01 to 0.20 m width, sometimes with breccia and shatter textures. Read the complete article More about this topic

These veins, veinlets and stockwork are usually in silicified and oxidized zones in the hosting rock and frequently associated with similarly altered rhyolite dikes.

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2021 Shapes Up to Be Exceptional for Sonoro Gold Sonoro Gold’s Cerro Caliche gold project in Sonora remains on schedule and on budget. The company’s fast-track program is establishing viability for production, while its exploration efforts are better defining and expanding the established gold mineralized zones. Results so far have supported an increase in the scope of the planned project from a proposed pilot operation to a potentially full-scale mining operation starting as soon as December 2021. As John Darch, Chairman of Sonoro Gold, explained in his Dec. 13, 2020, letter to shareholders, the drilling campaign at Cerro Caliche is two-pronged. On the one hand, Sonoro’s team is undertaking development and step-out drilling in known shallow mineralized zones. On the other, the team is core drilling higher-grade gold targets. The company’s strategy consists in a balance of a lowrisk program to expand the already established inferred gold resource with high-risk, high-impact targets. Darch noted that this approach has the potential to extend the size of known gold zones, while at the same time having the potential to discover new ones. An element common to all activities has been Sonoro’s careful financial stewardship to ensure the most effective use of available funds. As core drilling investigates deeper and potentially higher-grade targets, the company evaluates the gold mineralization penetrated at a shallower depth. In total, 10 core holes provided rock samples from the lower limits of Cerro Caliche’s oxide gold mineralization, Darch pointed out. These samples are now being subjected to independent metallurgical testing, a fundamental part of the Preliminary Economic Assessment (PEA) of Sonoro’s fast-track development schedule. There is also a small air track drill on the property drilling 30m holes to evaluate Cerro Caliche’s many prospective areas where gold-enriched oxide zones may be hidden under relatively thin layers of barren rock or gravel. Based on drilling results to date, Sonoro Gold expects material increases in both grade and quantity of resource, Darch wrote. The company is confident that estimated resources will be upgraded from the inferred to indicated category. Completion of NI 43-101 compliant technical reports is planned for April 2021. Less than 20 percent of the mapped gold mineralization zones at Cerro Caliche have been drilled and assayed. Also, there is potential for higher-grade gold targets at shallower depth. These two factors, in addition to the conceptual fast-track program to begin producing gold by December 2021, make it reasonable to expect a strong 2021 for Sonoro Gold. Read the complete article More about this topic

Read John Darch’s full letter and learn about the details of the Cerro Caliche gold project here. Forward-looking statements caution is also included therein.

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Sonoro Gold Announces 2020 Drill Program Positive Results Sonoro Gold Corp. has issued a report of its remaining assay results from its 2020 drilling program at the Cerro Calinche gold project in Sonora. Moreover, the company shared its plans to drill 50 additional RC and core holes that are expected to be completed in 1Q21. Cerro Caliche is located 45km from Magdalena de Kino in the Cucurpe-Sonora mega-district, which has multiple historic underground mines such as Cabeza Blanca, Los Cuervos, Japoneses, Las Abejas, Boluditos, El Colorado, Veta de Oro and Espanola. Mineralization types of the district include “variants of epithermal low sulfidation veins and related mineralized dikes and associated volcanic domes.” In December, Sonoro Gold announced its Cerro Caliche gold project in Sonora was on schedule and on budget. The company reported that its fast-track program sought to establish viability for production, while its exploration efforts aimed to define and expand the established gold mineralized zones, reported MBN. At the El Colorado gold mineralized zone “four core holes were drilled to test the periphery of the zone’s intensely drilled higher grade gold shoots,” from which three holes were successfully tested. In the southeast, SCD-027 extended the shoots lengths by 50m, SCD-028 intercepted three different mineralized intervals. SCD-028 intercepted the western splay of the adjacent GuadalupeCabeza Blanca vein system and the SCD-025 intercepted two mineralized intervals. In the Guadalupe Zone, located in the western part of the concession, the company plans to carry out additional drill holes to determine the potential of the zone and increase its gold mineralization. Moreover, at the Cabeza Blanca gold mineralization zone, located north of the El Colorado, the holes SCD-030 and SCD-031 confirmed an extension of 50m to the north. At the Veta de Oro gold mineralized zone, four core drill holes, SCD‑032, SCD‑033, SCD‑034 and SCD-035, and two RC holes, SCR-156 and SCR-157, tested vein stockwork and confirmed a narrowing vein zone between the Veta de Oro zone and the Abejas zone. The company said these drill holes have shown the potential for a higher-grade zone of gold mineralization. Sonoro Gold announced it is constructing roads and drill platforms to prepare the zone for the new drilling program, which seeks to test the north zone between El Rincon and Veta de Oro. In addition, drilling operations in this high potential zone are being carried out and the company expects to have results by the end of February. Mel Herdrick, Sonoro’s Vice President of Exploration, said the company’s 2020 drill program was very successful in identifying additional gold mineralization. Moreover, Heldrick said the company has additional drilling plans to unlock the project’s potential. For 2021, the company plans to drill 50 more holes by the end of March to update the resource estimate. John Darch, Read the complete article More about this topic

Sonoro’s Chairman, said the company’s priority is to generate free cash flow that will be used to explore and define Cerro Caliche’s mineralized potential.

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Sonoro Gold Discovers New Potential at Cerro Caliche Sonoro Gold Corp (Sonoro) has announced the results of its latest drilling program at its Cerro Caliche gold project. The company reported a significant increase in strike length at the Buena Suerte zone, the confirmation of the 2km-long El Rincón-Veta de Oro-Abejas vein and the identification of the new Bellotoso gold mineralized zone. The Cerro Caliche gold project is located between two mining districts: the Sierra Madre Gold Belt and the Sonora-Mojave Mega-shear. “The types of mineralization throughout the Cucurpe mining district include variants of epithermal low sulfidation veins and related mineralized dikes and associated volcanic domes,” reported the company. Sonoro’s exploration goal is to increase the size of the many precious metal mineralized zones. In December, Sonoro announced that its Cerro Caliche gold project remained on schedule and on budget. In addition, the company explained that its fast-track program was establishing viability for production, while its exploration efforts were defining and expanding the established gold mineralized zones. The results supported an increase in the scope of the planned project from a proposed pilot operation to a potentially full-scale mining operation expected for December 2021, reported MBN. The company reported that Buena Suerte zone has the potential to become a major contributor to the growth of Cerro Caliche’s resources. The company’s drilling program has extended its length to 900m and expanded the southern half of the zone to more than 300m with multiple south-trending vein structures. Sonoro told MBN that Buena Suerte has produced encouraging interceptions of high-grade and higher- grade gold as it potentially lies within a bulk mining resource. “Our strategy of infill and expansion drilling in our defined gold mineralized zones, together with strategically located scout holes in prospective new zones, is proving to be very successful,” said Kenneth MacLeod, President & CEO of Sonoro. The company also announced that between El Rincón and Veta de Oro, drill holes confirmed a 1km-long gold mineralized zone, which connects the 250m-long El Rincón zone with the 500m-long Veta de Oro vein system. The zone also extends southeast to the 300m-long Abejas stockwork zone and has the potential to be extended 500m to include the Chinos Altos historic mine area. The recently discovered Bellotoso zone is located parallel to the east side of the El Rincón-Veta de Oro zone. Its mineralized trend is 1.2km long and has shown wider zones containing higher grade gold intercepts and geological indications that could merge with the Espanola vein zone. Bellotoso has exceptional potential as its drilling results are part of a larger anomalous gold mineralized zone. “The three intervals reported in SCD-043 are within a wider 48.8m zone of anomalous gold mineralization averaging 0.372g/t Au.” In the original 43101 technical report, the cut was 0.25g/t Au, showing that the Read the complete article More about this topic

company does not need to conduct interceptions similar to SCD043, to make the zone an important contributor to Cerro Caliche’s resource growth.

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Q: What makes Cerro Caliche a true gem for mining operations and a unique opportunity for investors? A: The exploration program is aimed to bring Cerro Caliche to production as soon as possible and we are pleased to say that we are achieving this goal. When we acquired the project, the existing mineralized structures had little exploration but we were able to see its potential. Sonoro’s exploration program tested these structures and after two years we have confirmed the high potential of the project. As of today we have sufficient resources to start a medium-sized operation. It has been a very rapid development and we look forward to continuing the expansion of the resource, especially in those areas that remain unexplored. With the current results of Sonoro´s exploration program the development of an initial operation phase is now a reality and other studies that have been under development during this period are as well providing positive results. Soon, Sonoro will be able start its planned initial phase operation, to internally generate enough funds to continue the exploration program as well as the expansion of the project. Q: How has the company progressed with its short-term goals? A: We have come a long way and we are very excited about the results so far. Today we are confident that we can start a first phase operation targeted at a 15,000 tpd of oxidized mineral

Jorge Diaz

level, which is very impressive for Sonoro´s two-year exploration period. Other investigation work results are supporting our positive assumptions on crucial issues such as metal recovery and positive percolation characteristics, which is a great combination since it

Vice President of Operations | Sonoro Gold Corp

has an important impact on the economics of the project. We are also confirming now that our mineral resource does not contain preg-robbing elements and is practically fully oxidized, which explains the good recoveries and a practically nil potential for acid drainage generation. All these elements have a positive impact. To

Cerro Caliche Is Sonora’s Next Promising Gold Operation

be honest, the whole project looks great and encouraging. Q: What characteristics make you believe that Cerro’s Caliche’s heap leach mining operation (HLMO) could increase its conceptual capacity from 8,000 tons per day to 20,000? A: When we did the first evaluation of the potential resources of the project, we thought we could have plus 2Moz of gold in Sonoro´s property and we thought as well that we were looking at a low-grade deposit. Now, after two years of work we maintain our expectations in the total resource potential since the current results have confirmed the resources expectations in the explored area and we still have a further 65 percent of potentially mineralized zones remaining to be tested. It is of worth to mention that as we have increased the density of exploration holes, we have been able to locate and delineate areas with higher gold content, which have allowed us to see a continuous increase of the average gold grade of the resource. We are fully aware that there are not many deposits of similar size and with under three years of work it feels very good that we have reached this level. Again, during this relatively short period Sonoro has proven our

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good expectations for Cerro Caliche. Not long ago the plans considered a production rate of 8,000 tpd for our initial operation phase, but the results today confirm a firm possibility of an initial 15,000 tpd phase, this means that we are rapidly approaching the potential for 20,000 tpd, which is very impressive.

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Sonoro Gold Announces Promising Drilling Results Sonoro Gold Corp. (Sonoro Gold) announced the test results of a drilling program at its Cerro Caliche gold project in Sonora. The program included the drilling of 32 holes that confirmed a high-grade zone at Buena Suerte, high-grade intercepts in its northern extension, continued mineralization at the El Rincón–Veta de Oro–Abejas vein and further extension of the Bellatoso zone. “This brings us closer to our goal of developing a major bulktonnage, oxide gold resource with the potential to provide a source of production and revenue in the years to come,” John Darch, Chairman of Sonoro Gold, said in a press release. At the northern extension of Buena Suerte, the drilling program identified a 200m-long high-grade ore zone, which suggests the presence of an ore shoot. Highlights of the program include “SCR186 intercepted 24.39m averaging 1.206 g/t Au, including 13.72m averaging 1.853g/t Au; SCR-187 intercepted 9.14m averaging 0.522g/t Au and 21.9g/t Ag and SCR-191 intercepted 16.77m averaging 0.451g/t Au and 3.04m averaging 0.409g/t Au,” states a company press release. . At the Japoneses drilling zone, the company identified several mineralized intersections and the extension of the zone’s western boundary where there may be a pit optimization due to the potential convergence of the Japoneses and Buena Suerte open pits. Highlights of the zone include a “drill hole SCR-198 intercepted 19.81m averaging 0.465g/t Au from surface, while approximately 50m to the south and drill hole SCR-197 intercepted 7.62m averaging 0.513g/t Au from 9.14m below surface.” At the El Rincón vein, Sonoro Gold cut a 70m section of anomalous gold, where “a 10.67m intercept averaging 0.308g/t Au was cut between 45.72m and 56.39m.” Additionally, the drill hole SCR-175 had a similar anomalous interval and “intercepted 3.05m averaging 0.836g/t Au.” At Veta de Oro, “drill hole SCD-045 intercepted 5.1m averaging 0.367g/t Au and 4.5m averaging 0.327g/t Au,” which confirmed the continuity of the mineralization at the El Rincón–Veta de Oro– Abejas vein. The company announced that it will continue to review this data to identify the best sections for future drilling. Drilling in the Bellotoso vein zone consisted of four holes. The most important was SCD-044, which “intercepted 10.5m averaging 0.86g/t AuEq.” At Gloria, “drill hole SCR-179 intercepted 7.62m averaging 0.182g/t Au and SCR-181 intercepted 1.52m averaging 1.47g/t Au.” The Gloria zone will be further evaluated to determine its future actions in the northwest, where drilling has demonstrated more consistent mineralization. “The current phase of the drill program is focused on expanding mineralized zones and upgrading the resource classification at the four main zones that Micon International will assess. At the same time, drilling is also addressing the potential pit optimization that Read the complete article More about this topic

might be achieved by combining the conceptual Japoneses and Buena Suerte open pits into one larger pit,” said Kenneth MacLeod, President and CEO of Sonoro, in a press release.

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Cerro Caliche Is Sonoro’s Future Cash Machine Opportunity Sonoro Gold Corp. (Sonoro) expects Cerro Caliche to be in production next year, if all goes according to plan, and its shares should trade early with a market capitalization of at least two times its indicated cash flow, which is approximately US$86 million. In addition, Cerro Caliche also has an exceptional exploration potential, which could bring its resources in the Au range of 2 million oz. Sonoro’s technical report NI 43-101 of Cerro Caliche estimated inferred mineral resource “at a 0.25 g/t gold equivalent cut-off grade of 11.5M tons at an average grade of 0.495 g/t gold and 4.3 g/t silver.” The company plans to start production by building a heap leach mining operation (HLMO) at Cerro Caliche, for which it has signed a Memorandum of Understanding with three Chinabased EPC companies for financing and development. Sonoro’s target production is of 20,000 tons per day (TPD). While the 43-101 report amounts to just over 200,000oz of Au, averaging 0.5 grams per ton, this is already enough for the first 2.5 years of production. Additionally, the company has factored an earlier estimate of a 72 percent gold recovery. Over 14,000m have been drilled since September, showing some exceptional intercepts in both infill drilling and expanding at known gold zones, while additional gold zones have also been established, resulting in a new resource estimate 43-101. The completion of this estimate is scheduled for April-May and Sonoro has reported it expects a substantial increase in gold resources. In March, Sonoro announced the test results of a drilling program at Cerro Caliche. The company explained that at the Japoneses drilling zone, it identified several mineralized intersections and the extension of the zone’s western boundary where there may be a pit optimization due to the potential convergence of the Japoneses and Buena Suerte open pits. This potential coverage will not only increase the size of the project but will also optimize its economics. The mine’s development is expected to be a catalyst for massive cash flow for the company. At the Mines and Money conference, Kenneth MacLeod, President and CEO of Sonoro, stated that the drilling results maintained the grade of 0.5g/t and that the already established resource supported an operation of 15,000 TPD, which means that 20,000 TPD can be reached. MacLeod also said the startup would not exceed US$12 million, with an estimated revenue of 15,000 TPD, the CAPEX payback would be in 91 days. Sonoro explained to MBN that even being conservative in calculating the company’s operating potential of 15,000 TPD averaging 0.5 g/t ton Au, it should produce the equivalent of approximately 264oz of gold per day. Sonoro said that by using cash costs from similar mines in the area, it is reasonable to expect an AISC cash cost in the range of US$1,200 per oz/Au. The records show a potential free cash flow, using a gold price of US$1700/oz, and a gold price of US$500/oz of profit margin, of US$132,321.00 per day. This amount must be multiplied by 330 business days, Read the complete article More about this topic

assuming there will be 35 days without production due to holidays and maintenance, which shows that its free cash flow would be of US$ 43,665,000 per year.

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Private Placement to Boost Sonoro’s Cerro Caliche Project To conclude the drilling program and continue developing its Cerro Caliche Gold Project located in Sonora, Sonoro Gold Corp. (Sonoro) will take a non-brokered private placement offering. The company announced in a press release that this offer consists “of up to 11,111,111 units at a price of CA$0.18 (US$ 0.14) per unit, with gross proceeds of up to CA$2 million (US$1.585 million).” The company explained that each unit will have one Sonoro common share and a common share purchase guarantee, in which it will allow the holder to buy an additional Sonoro common share for two years from the closing at a price of CA$0.30 (US$0.24) per share. Sonoro plans to pay finder’s fees in accordance with TSX Venture Exchange’s policies regarding the units placed with the guidance of registered securities dealers. Sonoro explained that all securities issued and issuable related to the offer “will be subject to a four-month hold period in Canada from the closing date” and that the offer is still subject to approval by the TSX Venture Exchange. In a press release, the company explained that the net proceeds from the offering will be used primarily to finance Sonoro’s development program at its Cerro Caliche Project and its property maintenance payments. The rest of the money will be allocated to corporate and general administrative expenses. “The private placement will provide enough capital to conclude the current phase of the drilling program and complete the independent technical reports, positioning the company for the next phase of development as we advance toward a production decision at Cerro Caliche,” said Kenneth MacLeod, President and CEO of Sonoro. Sonoro recently told MBN that Cerro Caliche is the company’s cash machine opportunity since at the Japoneses drilling zone, the company has identified several mineralized intersections and the extension of the zone’s western boundary where there may be a pit optimization due to the potential convergence of the Japoneses and Buena Suerte open pits. This potential coverage will not only increase the size of the project but will also optimize its economics. Sonoro also expects its shares to trade with a market capitalization of at least US$86 million, which is a significant increase from its current US$16 million. In addition, Cerro Caliche also has an exceptional exploration potential, which could bring its gold resources to 2Moz. “It would not be a surprise if Cerro Caliche is another of the dozen gold deposits to be discovered, developed or mined in the region,” Sonoro told MBN. MacLeod highlighted that McClelland Laboratories’ metallurgical tests are on schedule and announced that the Read the complete article More about this topic

completion of the column leach tests will be ready in July, along with the updated resource report 43-101 and a PEA for its Cerro Caliche project.

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Cerro Caliche on Track for Near-Term Gold Production Sonoro Gold Corp. is on track to transition from an exploration to a producing company in 2022 thanks to its Cerro Caliche Gold Project in Sonora, which is expected to begin gold production during the first half of the year. Similar to some of its past successes, Cerro Caliche could be among the most important goldproducing operations in Mexico. In 2019, Sonoro completed an NI-43-101 technical report for Cerro Caliche. It was based on the approximately 22,000m of drilling that had been completed up until then. Using a 0.25 g/t gold equivalent cut-off grade, the technical report estimated an inferred mineral resource “of 11.5M tons at an average grade of 0.495 g/t gold and 4.3 g/t silver.” Since September 2020, another 25,000m has been drilled, expanding the company’s database to more than 47,000m. This enlarged dataset will form the basis of a new NI 43101 resource report and a Preliminary Economic Assessment (PEA) regarding Sonoro’s conceptual but rapidly crystalizing plans to begin gold production. The company’s recently concluded drilling campaign has confirmed a broadly mineralized 4km-long NW trending lowsulfidation epithermal vein structure, which contains multiple zones of gold mineralization along the trend and close to the surface. In addition, the program has shown the possibility of a strategic extension of four key mineralized gold zones within a northwesterly trend, which is characteristic of the region. Last May, the company announced the completion of its Phase 3 drilling program, in which test results from the last nine RC drill holes demonstrated a coalescence of two major zones: Japoneses and Buena Suerte. The company is excited because of the potential to merge the two zones into a single body of shallow, oxide gold mineralization. If this turns out to be the case, it could mean a single mining pit for the two zones and, as a consequence, the likelihood of a substantial increase in recoverable gold, together with a significant decrease in mining costs. A key objective of the August NI 43-101 technical report and PEA is to provide the conclusions of independent and qualified contractors regarding the quantification and analysis of Cerro Caliche’s updated mineral resource and its capacity to support Sonoro’s conceptual 15,000 tpd heap leach mining operation. D.E.N.M. Engineering Ltd. is in charge of preparing Sonoro’s PEA to confirm the feasibility of costs and capital for the project. The mineral resource estimate will include drilling data through April 15 and will be done by Micon International Ltd. Meanwhile, McClelland Laboratories Inc. is in charge of performing the metallurgical testing. The bottle roll tests have confirmed that mineralization is amenable to cyanide leaching, with recoveries averaging 80.3 percent. Column testing is nearing completion, with results expected in August for inclusion in the technical reports. Drilling activities have been halted to give the exploration team time to ensure that all data and assistance is available to the independent consultants and to implement any of their recommendations Read the complete article More about this topic

in their technical reports. Drilling and construction activities are expected to resume in 3Q21 to continue expanding the mineralization and identify potential new zones.

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Sonoro Gold Stands Out in the Junior Gold Mining Sector Gold production is slated to begin at Sonoro Gold’s Cerro Caliche project during the first half of 2022, an event that makes it one of Mexico’s most promising new mining developments. Sonoro’s directors and officers currently hold more than 18 percent of all issued and outstanding company shares. As telling, they keep investing more of their money into the company. Of a recent CAD$3.11 million (US$2.52 million) private placement financing management invested another 14 percent. The net proceeds from the offering are being used to finance further development plans at Cerro Caliche, including metallurgical testing, a 43-101 resource update, Preliminary Economic Assessment (PEA), property maintenance payments and corporate expenses. Cerro Caliche is Sonoro’s flagship property and its strategy is to use the cash flow they expect it to produce to fund further drilling, resource growth and any future mine expansion, while developing another similar nearby project called San Marcial. Sonoro’s Cerro Caliche database now contains 47,557m of drilling data, including more than 25,000m acquired since September 2020. The drilling has confirmed a broadly mineralized low-sulfidation epithermal vein structure containing at least 18 northwest-trending gold mineralized zones along the trend and near surface. The project’s potential is clear, as less than 20 percent of the areas of shallow oxide gold mineralization have been drilled. What this could mean for the company is contained in the Cerro Caliche 2020 Project Development Report, which concludes that based on the expectation that the tonnage and grade of mineralized zones within these trends is likely to be replicated along strike and to depth with additional drilling, the trends which have yet to be drilled have the potential to contain between 75 million to 100 million tons with an average grade of between 0.3 and 0.5 g/t gold. This multi-million ton estimate is in addition to the 200,000oz of gold already calculated in 2019 in the project’s maiden NI 43-101 technical report. It also does not include the property’s potential for deeper high-grade gold vein systems similar to those found at the neighboring Mercedes Mine. The shallow gold zones within Cerro Caliche have a known extent at this point covering an area over 3km long and 4km wide and there remains the potential for the shallow gold mineralization to continue expanding. If successful, this drilling would provide years of growth for Sonoro. More immediately, the mine’s development is expected to provide a series of share price catalysts. The first is the approaching PEA followed by the project’s permitting, securing project finance. It all points to the company becoming a self-sustaining cash flow gold producer that can then fund its future growth. There are plenty of similar gold deposits that are now profitable heap leach gold mines in the region with the necessary very low operating costs and they demonstrate that it is more than reasonable to expect that the Cerro Caliche operating costs should be low, too. Management is looking to the future and one consequence is the Read the complete article More about this topic

operation is being designed so that it is relatively easy to keep expanding. This is just one of the many pieces of the well-defined business plan Sonoro’s storied management has developed.

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Equity Research Group Touts Sonoro Gold Sonoro Gold has the potential to become Mexico’s next major gold producer, according to an analyst report from Equity Research Group. Equity Research cites Sonoro’s finances, resources, location and a management team capable of developing a prominent project. In its July report, the group forecast a bull market for copper and gold over the next decade. Sonoro Gold was also among the highlights of the July report, underlining Mexico’s potential. The group added the publicly-listed company to its list of stocks worth owning, calling it a calculated investment with few downsides. “Sonoro is a company with great ‘GoGold’ advantages,” the report said. Sonoro Gold Corp is a gold and silver mineral exploration company with a portfolio of exploration-stage properties in Sonora. The company has a highly experienced management mining team made up of business and finance professionals with a successful track record in discovery through resource development. The company will transition from an exploration company to a producing company in 2022 thanks to its Cerro Caliche Gold Project, which is expected to begin gold production during the first half of the year. Based on the costs of similar mines in the area and Sonoro’s published gold grades, along with its planned production rate, Equity Research estimates that Sonoro’s initial annual cash flow will at least equal, and could exceed, the current price of its shares. Additionally, experts noted that Sonoro’s initial cash flow is expected to increase substantially thereafter. Sonoro has a market cap of around US$28 million and 102.37 million shares outstanding as of its most recent earnings report. Equity Research highlighted the company’s executive team and its successful history of mining development in northern Mexico. Many members of its team have worked on large projects as part of companies such as Glamis Gold, Alamos Gold, Argonaut Gold and Pediment Gold. That experience and skill are expected to be key factors in the success of Cerro Caliche. An example is Sonoro’s Vice President of Exploration Melvin Herdrick, who has discovered and developed several important gold deposits during the 25 years he has been in Mexico as an exploration geologist. Likewise, Vice President of Operations Jorge Díaz oversaw the design, construction and subsequent operation of low-cost heap-leach gold mines in the 1980s, including Alamos Gold’s Mulatos mine. In the latest report, Equity Research compared Sonoro to Minera Alamos, which has just started producing gold at its Santana mine and is located south of Cerro Caliche. The transformation of Minera Alamos from explorer to gold producer boosted the company’s share price by more than 700 percent, from US$0.10 to US$0.78. Equity Research expects a similar performance from Sonoro, and perhaps even more. Sonoro’s share price most recently closed at CAD$0.38 (US$0.30). Another comparison would be GoGold Resources, whose shares rose from US$0.35 to US$3.50 due to its discovery of high-grade Read the complete article More about this topic

silver and the subsequent release of the PEA for its Los Ricos South project in Jalisco. Cerro Caliche is expected to put the Mexicobased Sonoro Gold on a similar trajectory.

SPOTLIGHT

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Sonoro Gold Corp: Ideal Balance Between Risk, Reward The price of gold has risen steadily over the last year, driven by US dollar weakness and a lingering global economic uncertainty. Although gold stocks have received less attention than the precious metal itself, a clear pattern has emerged and investors are now weighing which companies to invest in. Vancouverbased Sonoro Gold Corp has achieved an ideal balance of risk and reward, making it an attractive option for investors, especially during the early stages of the current metals upswing. Investors have already placed their trust in Sonoro. The August 2020 closing of a CAD$8 million (US$6.087 million) financing was a major milestone for the company. It was made possible thanks to the support of Palisades Goldcorp, a Canadian resourcefocused merchant bank. The financing testifies to the soundness of Sonoro’s two-track approach, designed to mitigate risk and maximize potential benefits. The company is exploring near-surface targets in Cerro Caliche to support a heap leach mining operation (HLMO). At the same time, Sonoro has commenced drilling deeper targets, which shows good potential for high-grade mineralization. The apparent risks of high-impact brownfield exploration are balanced with a less risky HLMO which would generate cash flow and reduce the need to raise equity capital in the future. Sonoro is making progress with its proposed HLMO under the direction of Vice President of Operations Jorge Diaz, an engineer and mine development expert who has directed the development of numerous mines in Northern Mexico, including La Colorada and El Sauzal. The HLMO is projected to be ready for construction by mid-2021. In May

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SPOTLIGHT

2020, Sonoro released its Cerro Caliche Project Development Report, which discusses both the project’s resource and shallow bulk mineable potential together with the newly developed highgrade gold potential. Subsequent to this report, the company commenced a two-tiered drilling program, composed of reversecirculation drilling to expand the near-surface inferred resource and core drilling to test the deeper high-grade potential. This exploration drilling campaign can be a game-changer for Sonoro. The recently-commenced drill program, is designed to test Cerro Caliche’s ideal boiling zone for the occurrence of deeper high-grade gold mineralization, the existence of which is strongly suggested by geological analysis. Part of this analysis includes geological data from the Mercedes mine, which is located roughly 9km to the southeast of the Cerro Caliche site. Drilling will consist of 6,000m of core drilling to test an initial 20 potential targets. It is common knowledge that the best place to find a gold mine is near another gold mine. Sonoro’s investment upside is noteworthy. Results from drilling and field work show that the extent of the exploration potential of mapped shallow oxide gold mineralization is between 75 to 100 million tons with grades likely between 0.3 g/t and 0.5 g/t AuEq. Additionally, there is potential for high-grade gold zones at depth, as indicated by Cerro Caliche’s geology and the Mercedes mine, which shares the same epithermal system. Average mine-mill grades at the Mercedes mine have ranged between three and six g/t of gold with up to 100 g/t of silver. Cerro Caliche shares several similarities with Mercedes’ geology, indicating possible Mercedesstyle zones of high-grade gold mineralization. Sonoro’s Cerro Caliche has been described as the best of both worlds. The proposed HLMO can generate revenues from an already defined inferred resource of 200,000 oz of gold. This will help fund future exploration and possible development of the known near-surface gold mineralization. Additionally, the exploration drilling, totaling approximately 50,000m and planned for 2020-21, will target both infill exploration in zones that were previously drilled, as well as a large number of holes to test undrilled portions of various mineralized trends along strike and at depth. Sonoro Gold Corp has developed a relatively rare investment opportunity consisting of two elements. First, the HLMO plan: Read the complete article More about this company

a solid, lower risk component. Second, the high-grade potential upside. When this dovetails with the fundamentals spurring the current gold bull market, the result is indeed promising.