COMPANY REPORT
Company Report Table of Content
4
View From the Top Melvin Herdrick | Vice President of Exploration | Sonoro Gold Corp
5
Analysis Flagship: Cerro Caliche Gold Project
7
Analysis Positive PEA Results for Cerro Caliche Gold Project
9
Analysis Analysis Drilling Program to Extend Mineralization & Focus on Higher-Grade Targets
11
Analysis 2022 to be an Exceptional Year for Sonoro Gold
12
Analysis Private Placement to Boost Cerro Caliche Project
13
View From the Top Jorge Diaz | Vice President of Operations | Sonoro Gold Corp
14
Analysis Phase III Drilling Completed at Cerro Caliche
15
Analysis Sonoro Gold Stands Out in Junior Gold Mining Sector
16
Spotlight Sonoro Gold Corp: Ideal Balance Between Risk, Reward
VIEW TOP Sonoro Gold Corp | Company Report | 4
from the
Q: What is your experience in the discovery and development of resource deposits? A: I started my career in the Northwestern US beginning in the late 1960s. I was quite fortunate. I was working for Kennecott Copper and was part of the discovery team for the Spar Lake Deposit and Vermillion River Deposits which are now being mined by Hecla Mining. I did a lot of consulting work in the region and then in 1994 I started working for Phelps Dodge in Mexico. It was a great opportunity, and I was fortunate to lead the program for the discovery of Penoles-Pencobre, La FloridaBarrigon porphyry copper deposit, and also led the acquisition team for the Piedras Verdes porphyry copper deposit. I also led the discovery of the Los Planes 2 million oz gold deposit, in Baja California Sur, and took La Colorada, a closed open pit gold-silver mine, and subsequently defined a major deposit surrounding the old workings. It’s now operated by Argonaut Gold. The environment for gold and copper exploration in Mexico remains very good and there is much more potential for additional discoveries. Sonoro’s Cerro Caliche is a great example given its extensive gold mineralization that we have only just begun defining. Silver is often found as an associated mineral and that has been the case for Sonoro. Our priority is Cerro Caliche as we already have a PEA and are working towards producing gold in a heap leach mining operation from part of the property.
Melvin Herdrick
We have another project called San Marcial with similar potential but as I said, our focus is to begin producing gold at Cerro Caliche first.
Vice President of Exploration | Sonoro Gold Corp
Q: In addition to your experience and leadership, what characteristics make Sonoro a truly modern exploration and development company? A: I think first what distinguishes us is that we are both an
Sonoro Gold on Track to Production
exploration and development company which expects to begin gold production in the next year and the fact that we incorporate the latest geological and engineering concepts while working to minimize the environmental impact of the project. I would expect given how disturbed the area is from the previous artisanal mining we will leave it better than we found it. What is really important I think is the expertise of our local Mexican team. Jorge Diaz is a great example. He’s been leading the development of mines in this region for decades. Alamos Gold’s Mulatos is indicative of his capabilities as he managed its redesign, development and start-up. It’s a major success for Alamos. I think we have a group of people, who, like Jorge, are really competent with all the skills required to fully develop Cerro Caliche and later San Marcial. Q: How are Sonoro Gold’s ESG efforts also being implemented in Cerro Caliche’s exploration and development program? A: We take care to affect as little of the environment as possible and assess the impact that our project will have on the environment and how we can contribute to nearby communities. Our goal is to minimize any negative impact and restore the
Read the complete article More about this person More about this company
natural vegetation in areas that are affected by our activities. Sonoro believes that if we build a mine its economic plan must include this restoration and benefit for the local community. We also minimize the impact of our ongoing activities while maximizing safety.
Sonoro Gold Corp | Company Report | 5
Flagship: Cerro Caliche Gold Project Sonoro Gold Corp’s flagship project, Cerro Caliche, is located in the Cucurpe Municipality of Sonora State in northwestern Mexico and is strategically located between the Sierra Madre Gold Belt and the Sonora-Mojave Megashear mining districts, surrounded by several gold-silver mining operations, including Equinox Gold’s Mercedes mine and Agnico Eagle’s advanced Santa Gertrudis project. The property is comprised of 15 contiguous mining concessions covering a total of 1,350 hectares and contains a broad area of near or at surface oxide gold-silver mineralization. The mineralized area consists of repeating northwest trending vein zones that march from the western side of the property to the eastern side of the property. The gold mineralization throughout most of the project is uniform and silicified, ranging from general moderate silica addition to intense pervasive silica flooding. Open structures are the most important aspect of low sulphidation epithermal gold mineralization and is the most complex aspect of gold silver mineralization. The structures at Cerro Caliche are developed within a listric faulting regime producing a semi-parallelism of fracturing vein structure with a minimum width of five to six kilometers and a maximum length of over three kilometers. The Cerro Caliche deposits are considered a Low Sulfidation Epithermal Precious Metal mineral deposit type and are the same silvergold deposits found in the nearby Mercedes and Cerro Prieto gold mines. Since obtaining the property in 2018, Sonoro has completed a multi-phase exploration program of drilling, geological mapping, and surface rock sampling. Drilling focused on following the main vein zones named after their historic mine sites: Los Japoneses mineralized zone with the related extensions of the Cuervos and Buena Vista mineralized zones, the Buena Suerte mineralized zone, the Chinos NW mineralized zone, the Abejas mineralized zone with the extensions of the Veta de Oro and El Rincón mineralized zones and possibly the Chinos Altos mineralized zones; and the Cabeza Blanca mineralized zone with adjacent and connected Guadalupe and El Colorado mineralized zones. Located on the same northwest trending lineament approximately one kilometer apart are the relatively isolated vein zones of La Española and El Bellotoso. Exploration at these two mineralized zones has been minor but drilling results indicate favorable gold content. As of April 2021, the Company has drilled over 34,500 m including 266 reverse-circulation drill holes, 48 core drill holes and 2,845 surface samples. Sonoro has also acquired, reviewed, and catalogued data from all prior exploration
Sonoro Gold Corp | Company Report | 6
programs since 1997. When combined with historical data, total exploration at the Cerro Caliche project totals over 47,500 m in 433 drill holes and 9,365 surface samples. In 2020 Sonoro engaged McClelland Laboratories, Inc. to undertake a metallurgical testing program and determine specific crushing and heap leaching parameters of the mineralization. The testing program was conducted on 52 drill core composites made from 428 lineal metres of PQ drill core (10 drill holes). In August 2021, the Company announced the column metallurgical test results returned an average recovery rate of 74 percent for gold. The Company also engaged Micon International Limited to complete an updated resource estimate as part of a Preliminary Economic Assessment (PEA) being prepared by D.E.N.M. Engineering Ltd. The positive results of the PEA were announced in September 2021 demonstrating the potential economic viability of an openpit, Heap Leach Mining Operation (HLMO) with a seven-year mine life producing a total of 323,500 ounces of gold equivalent. The updated resource included all prior and current exploration data up to April 2021 and outlined a measured and indicated mineral resource of 26.7 million tonnes at 0.41 grams of gold per tonne (g/t Au) containing 349,000 ounces of gold and an inferred mineral resource of 5.5 million tones at 0.40 g/t Au containing 71,000 ounces of gold. The report also outlines an additional potential mineralization of 19.3 million to 34.4 million tonnes containing 204,000 to 365,000 ounces of gold in areas identified by limited exploration drilling. Sonoro’s objective is to expedite operations and generate cashflow to fund further drilling. With only 30 percent of the property drilled and assayed to date, additional exploration is required to develop the project’s full economic potential. As discussed in the Company’s Project Development Report (PDR) dated May 25, 2020, the goal is to test an exploration target of between 75,000,000 to 100,000,000 tonnes with grades potentially between 0.3 g/t to 0.5 g/t AuEq. In October 2021, the Company announced its intentions to commence a 10,000-meter drilling program that will proceed alongside the development of the HLMO. The drilling campaign will focus on expanding the project’s oxide gold resource as well as potential higher-grade targets recently identified by a surface sampling program. As a publicly traded Company, Sonoro’s Technical Reports Read the complete article More about this topic
and drilling results are publicly available and filed with the Canadian System for Electronic Document Analysis and Retrieval (www.sedar.com).
Sonoro Gold Corp | Company Report | 7
Positive PEA Results for Cerro Caliche Gold Project On September 15, 2021, Sonoro announced the results of an independent PEA completed on the Company’s Cerro Caliche gold project located in Sonora, Mexico. The report was prepared in accordance with the requirements of National Instrument 43101 and calculated a seven-year Heap Leach Mining Operation (HLMO) with a capacity of 15,000 tonnes per day (tpd). Using a gold price of US$1,750 per ounce and a silver price of US$22 per ounce, the PEA estimates an after-tax NPV5 of US$41.5 million with an IRR of 32.4 percent and pre-tax NPV5 of US$68.7 million with an IRR of 52.7 percent. Annual average production is estimated at 45,750 oz/AuEq with a Cash Cost of US$1,227 per ounce and an All-in-SustainingCost (AISC) of US$1,351 per ounce. By initially focusing on the higher-grade zones within the pit shells, the average annual production rate in the first three-years of operations is estimated at over 56,000 oz/AuEq with an average grade of 0.51 g/t AuEq and Cash Costs and AISC at US$1,159 and US$1,282, respectively.
PEA HIGHLIGHTS: + Pre-Tax NPV of US$68.7m with an IRR of 52.7 percent + After-Tax NPV of US$41.5m with an IRR of 32.4 percent + 7-Years LOM with Annual Production of 45,700 oz AuEq at 0.41 g/t AuEq + Years 1 to 3 Annual Production of 56,500 oz AuEq at 0.51 g/t AuEq
US$32.2M Capital Cost
+ Initial CAPEX costs of US$32.2m, including US$3.8m in contingency + OPEX costs of US$1,227/oz AuEq and AISC of US$1,351/oz AuEq + 74 percent % Gold Recovery and 24 percent Silver Recovery + Payback period of 2.2 years Estimated capital costs for the Cerro Caliche Gold project are based on an open pit mining and heap leach operation processing five million tonnes per year and utilizing contract mining. Initial Capital Costs are estimated at US$32.2 million, including US$3.8 million in contingency with sustaining Capital
Direct 19,128,000 Infrastructure 4,401,646 EPC 3,403,056
Indirect 1,480,351 Contingency 3,788,407
Costs estimated at US$4.8 million. Cash costs for Cerro Caliche for the life of mine are estimated at US$396.9 million or US$1,227 per gold equivalent ounce and include mining, crushing and processing as well as maintenance and administration costs. All-in Sustaining Costs for the project for the life of mine are estimated at US$489.3 million or US$1,462 per gold equivalent ounce and include operating costs, sustaining capital, reclamation, taxes, royalties and refining charges. Open pit mining will be undertaken by a contractor and carried out by drill and blast conventional loading and truck haulage to the crushing facility. The processing facilities will be comprised of a three-stage crushing circuit with material conveyed and stacked in a conventional heap leach pad and irrigated with a
Read the complete article More about this topic
low concentrate cyanide solution. Gold and silver impregnated carbon will be shipped to a 3rd party processing facility for stripping and doré bar production.
Sonoro Gold Corp | Company Report | 8
As part of the PEA, an updated Mineral Resource Estimate was completed to incorporate geological data from the Company’s recent drilling campaign. Resources include a measured and indicated mineral resource of 26.7 million tonnes at 0.41 g/t Au containing 349,000 ounces of gold and an inferred mineral resource of 5.5 million tonnes at 0.40 g/t Au containing 71,000 ounces of gold. Furthermore, the report outlines an additional potential mineralization of 19.3 million to 34.4 million tonnes containing 204,000 to 365,000 ounces of gold in areas identified by limited exploration drilling. As noted in the above section, only 30 percent of the property’s mineralized zones have been drilled and assayed to date. The Company plans to utilize future drilling campaigns to expand the project’s resource and target higher-grade “windows” of oxide gold mineralization identified by surface sampling Read the complete article More about this topic
programs. A larger, higher-grade resource is expected to extend the life of the mine and improve the overall economics of the project.
Sonoro Gold Corp | Company Report | 9
Drilling Program to Extend Mineralization & Focus on Higher-Grade Targets Drilling resumed at Cerro Caliche in November 2021 with a 10,000-meter RC drilling campaign. The program will proceed alongside the proposed development of the HLMO and is designed to expand the project’s resource and target “windows” of highergrade oxide gold mineralization. Exploration activities by the Company has confirmed a broadly mineralized low-sulphidation epithermal vein structure with at least 18 northwest trending gold mineralized zones along trend and near surface. A surface sampling program completed in August 2021 further demonstrated linear structural corridors of anomalous gold, silver, and base metal mineralization and identified five high-priority window targets where multiple assay results returned grades between 2.5 and 14.3 g/t Au. Confirmation of higher-grade mineralization would likely improve the economics of the HLMO, especially for the initial years of operation. The map below shows the proposed drill holes for the upcoming program although locations may change as drilling and sampling results may impact drilling sequence, location and priority.
The Company plans 705-meters of infill and expansion drilling at El Colorado (A) and a further 1,230 meters of drilling is planned along the El Colorado/La Ventana Corridor (B) where surface assay results confirmed a 600-meter extension to the southeast from El
Sonoro Gold Corp | Company Report | 10
Colorado to La Ventana. Three oxide gold mineralized “windows” within the El Colorado/La Ventana Corridor returned assay results from 39 samples averaging 0.63 g/t Au and results from 51 samples averaging 0.76 g/t Au. Another seven samples returned grades between 4.4 g/t Au and 9.9 g/t Au. To the east of El Colorado at the Buena Suerte mineralized zone, the Company plans 1,215 meters of infill and extension drilling at the north and south ends of Buena Suerte (C). An additional 1,800-meters of drilling is targeted along the Buena Suerte/ San Quintín Corridor (D) to the south of Buena Suerte. Surface sampling confirmed a 750-meter southern extension of the Buena Suerte/San Quintin Corridor where two windows of oxide gold mineralization were identified also suggesting the potential for higher-grade and near surface mineralization. Assay results from 61 samples averaged 0.65 g/t Au and another 11 samples returned grades between 2.5 and 14.5 g/t Au. Another 1,110-meters of expansion drilling is planned at El Rincón (E) to connect with the northwest extension of the Veta de Oro gold mineralized zone located over 500-meters to the southeast along the same structure. An additional 1,290-meters of drilling is planned at Cuervos (F), located at the southernmost extension of the Japoneses mineralized zones to expand the Cuervos zone toward the northwest and to the south and southwest. Drilling is planned to extend the Cabeza Blanca (G) vein zone to the north as well as at the Abejas/Chinos Altos Corridor (H) where the Company plans to investigate the horse tailed bifurcation of the Abejas (I) vein zone with four vein splays to the southwest into Chinos Altos. Drilling will also focus on extending mineralization at two zones excluded from the updated resource estimate due to lack of required drilling density. The first is the Guadalupe zone (J), located parallel to the west side of Cabeza Blanca where the Company plans 300 meters of infill drilling to investigate the potential for the Guadalupe zone to coalesce with the Cabeza Blanca open pit. The second excluded zone is La Española (K), where surface sampling identified the area as being within the recently defined La Magdalena/La Española Corridor. The Company plans to drill approximately 1,800 meters at La Española and another 190-meters at La Magdalena (L). When the Company announced the drilling program on October 25, 2021, Sonoro’s President and CEO, Kenneth MacLeod, commented, “This program has been under development since we paused drilling in May 2021. It is strategically designed to expand the project’s mineralized zones and target potentially higher-grade, near surface mineralization. We maintain our strategy to expedite the commencement of operations to generate cashflow that will contribute to further drilling to increase the project’s potential.” Sonoro’s Chairman, John Darch, added, “The drilling campaign will focus on potentially increasing the size and grade of the gold resource while we continue with the proposed development of the HLMO. Confirmation of extensive, higher-grade mineralization could potentially improve the overall economics of the project.” Read the complete article More about this topic
The program is expected to continue until the end of the first quarter of 2022 with early drilling results to be announced in the New Year.
With the development of its heap leach mining operation and the anticipated success of the current drilling program, 2022 should be an exciting and productive year for the company. Provided adequate financing is secured, Sonoro could commence production at Cerro Caliche by the end of year.
GOLD PRODUCTION AUEQ
As outlined in the PEA, the company will annually produce 56,500 ounces of gold equivalent at 0.51 g/t AuEq for the initial three
$120
70,000 60,000
years of operations at a reduced cash cost of 1,159 per ounce.
$100
The intent of the current drilling program is to increase the size and grade of the resource thereby extending the mine life and
50,000
improving the overall economics of the HLMO. Exploration
$80
40,000 $60 30,000 $40
20,000
$20
10,000
USD$m
Production Au Eq oz
Sonoro Gold Corp | Company Report | 11
2022 to be an Exceptional Year for Sonoro Gold
is currently focused on multiple targets designed to extend mineralization along trend and near surface as well as investigate the potential for higher grade gold mineralization. Once in production, the Company will use revenues to fund ongoing exploration and expansion of the HLMO. Collectively, Sonoro’s management has discovered, developed and operated multiple gold and coppers mines including
0
—
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
$0
operations within the region. Melvin Herdrick, VP of Exploration, was with Pediment Gold Corp. when he discovered the two-
Gold Production
million-ounce Los Planes deposit at the San Antonio gold project
Revenues
in Baja California Sur and discovered one-million ounces of gold with significant silver at the closed La Colorado mine now back in operation. Jorge Diaz, VP Operations Manager, was the Read the complete article More about this topic
general manager of the San Antonio project for Argonaut Gold, El Cairo project for Morgain Minerals and the Mulatos project for Alamos Gold.
Sonoro Gold Corp | Company Report | 12
Private Placement to Boost Cerro Caliche Project On December 20, 2021, Sonoro announced the closing of a non-brokered private placement for gross proceeds of CAD$3,000,000. Each Unit consists of one Sonoro Common Share and one Share Purchase Warrant. Each warrant entitles the holder to purchase one additional Sonoro Common Share for a period of two years from the closing date at an exercise price of CAD$0.30 per share. The net proceeds from the Offering will be used primarily to fund the 10,000-meter drilling campaign currently underway at the Cerro Caliche Gold project in Sonora, Mexico. The drilling program is to focus on expanding the project’s oxide gold mineralization included in the updated Resource Estimate announced September 15, 2021, as well as the potential highergrade targets recently identified by a surface sampling program. Previously announced sample assay results returned grades between 2.5 and 14.3 g/t Au and revealed multiple oxide gold mineralized “windows” with strong stockwork quartz veining and broad zones of gold and silver mineralization. Drilling will also focus on extending mineralization in the southeast region of the concession that was excluded from the updated resource estimate due to lack of required drilling density. Sonoro’s President and CEO, Kenneth MacLeod, added, “we are excited to have commenced the next phase of drilling and anticipate another successful program. The wealth of technical data amassed to date suggest the potential to increase the resource within the project’s known mineralized structures as well as the potential for higher grade and extended mineralized structures identified through scout drilling and surface sampling.” Sonoro’s Chairman of the Board, John Darch, stated, “I believe participation by Sonoro’s directors and officers for 19 percent of the current financing is a clear demonstration of our confidence in the success of the Cerro Caliche Project. I am also very pleased we have resumed drilling and are assessing the potential for higher grade near surface gold and silver mineralization. Increasing the size and grade of the resource could potentially extend the life of the proposed Heap Leach Mining Operation HLMO) thereby materially improving the economics for the conceptual 15,000 tonnes per day HLMO.” Over the past 18-months the Company has successfully raised Read the complete article More about this topic
over CAD$14,000,000 to fund ongoing drilling programs and the completion of a 43-101 Preliminary Economic Assessment as well as an Updated Resource Estimate.
VIEW TOP Sonoro Gold Corp | Company Report | 13
from the
Q: What makes Cerro Caliche a true gem for mining operations and a unique opportunity for investors? A: The costs of mining and processing are very low and everything we need to mine is easily acquired. It is a very good working environment and there is great potential to expand the resource and mine once in operation. We are working to begin production at Cerro Caliche as soon as possible and we are pleased to say that we are advancing this goal. For investors, I believe Sonoro is more attractive now that we have an independent 43-101 that demonstrates the project’s potential economics. I also believe that the economics will improve if we are successful with our drilling campaigns to expand the resource. It has been a very rapid development and hopefully Sonoro will soon be commencing its initial phase of operations. Once in production, we can generate enough funds to continue the exploration program and expand the project with minimum dilution for our shareholders.
“
We are fully aware that there are not many deposits of similar size that have reached our stage with just three years of work.”
Jorge Diaz
Q: How has the company progressed with its short-term goals?
Vice President of Operations | Sonoro Gold Corp
We have come a long way and we are very excited about the results so far. Today we are confident that we can initiate the first phase operations at 15,000 tpd. This is very impressive for a three-year exploration period. Other investigation work has supported our previous assumptions on crucial issues such
Cerro Caliche Is Sonora’s Next Promising Gold Operation
as metal recovery and positive percolation characteristics, which is a great combination since it has an important impact on the economics of the project. We also confirmed 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. In my opinion, the whole project looks great and encouraging. Q: What characteristics made you believe that Cerro’s Caliche’s heap leach mining operation (HLMO) could increase its conceptual capacity to 15,000 tpd or more? A: When we did our first internal evaluation of the potential resource, we estimated we could have over two million ounces of low-grade gold within the property. Now, after three years of exploration, we maintain this assumption as we have a confirmed resource based on only 30 percent of the property’s mineralized zones. We still have another 70 percent to test. At first, we assumed a production rate of 8,000 tpd for our initial phase of operations, but the resource is sufficient to justified an initial rate of 15,000 tpd. From here we have a solid base from which to
Read the complete article More about this person More about this company
keep growing. We are fully aware that there are not many deposits of similar size that have reached our stage with just three years of work. It feels very good and I am very proud of our team.
Sonoro Gold Corp | Company Report | 14
Phase III Drilling Completed at Cerro Caliche On June 1, 2021, Sonoro announced that it has completed Phase III of its drilling campaign at Cerro Caliche. To date, the Company has drilled and assayed results from over 34,500 meters of drilling, including over 25,000 meters of new drilling since September 2020. Mineralization identified to date is expected to be sufficient to support a proposed Heap Leap Mining Operation (HLMO) with an initial operating capacity of up to 15,000 tpd. The Company anticipates an upcoming independent Technical Report will not only confirm the sufficient resource but will also confirm the potential viability of a mining operation at Cerro Caliche. Phase III confirmed material expansion and strategic extension of several mineralized zones outlining four major parallel northwest trending gold zones:
3. Buena Suerte Gold Mineralization Zone
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 disseminatedstockwork and higher-grade gold bearing veins along El Rincón’s southeastern striking trend. 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 this zone depart from the uniform northwest-prominent trend of the district and exhibit numerous splays and abrupt directional changes in the vein trends. + 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.
+ 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-meterlong, high-grade vein splay, in the southwest extension. 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. + 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 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.
Kenneth MacLeod, Sonoro’s President and CEO commented, “We have reached a watershed juncture in the development of Sonoro, as we are now making the transition from an exploration company to our aspirational goal of becoming a Read the complete article More about this topic
gold producer in early 2022. We are grateful for the support of our shareholders over the past three years as we strive to make Cerro Caliche the next mining success story in Mexico.”
Sonoro Gold Corp | Company Report | 15
Sonoro Gold Stands Out in Junior Gold Mining Sector Gold production is slated to begin at the Cerro Caliche project at the end of 2022, an event that makes Sonoro one of Mexico’s most promising new mining developments. Cerro Caliche is the Company’s flagship property, and the strategy is to use cash generated from production to fund further drilling, resource growth and any future mine expansion as well as develop nearby project, San Marcial. The Cerro Caliche database now contains 47,557 meters of drilling data, including more than 25,000 meters completed since September 2020. 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 shallow gold Read the complete article More about this topic
mineralized zones within Cerro Caliche have a known coverage of over three kilometers by four kilometers wide and with only 30 percent of the known mineralization drilled and assayed, there remains the potential for continued expansion. A 2020 Project Development Report completed on the project outlines a potential target of between 75,000,000 to 100,000,000 tonnes with grades between 0.3 and 0.5 g/t of gold equivalent. There are similar gold deposits within the region that have developed into profitable mining operations, and it seems reasonable to expect Cerro Caliche to follow suit. Once in production, Sonoro will become a gold producer with revenues to fund future growth without continued shareholder dilution. Operations are being designed to support expansion as the size and grade of the resource is expected to increase with ongoing drilling activities. Meanwhile, management is looking to the future and continues to invest more of their money into the company. At present, Sonoro’s Officers and Directors hold more than 20 percent of the issued and outstanding shares in the Company.
SPOTLIGHT
Sonoro Gold Corp | Company Report | 16
Sonoro Gold Corp: Ideal Balance Between Risk, Reward The price of gold has been consolidating over the last year and looks set to resume its upward trend. 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. Vancouver based 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. The company has resumed drilling at the project while it develops its proposed heap leach mining operation (HLMO). The drilling program has been designed to expand the project’s resource and test the potential of higher-grade targets. The apparent risks of high-impact brownfield exploration are balanced with a far lower Read the complete article More about this company
risk mine development. Given that an independent PEA completed on Cerro Caliche indicates the proposed mine should generate an annual pre-tax cash flow greater than its current market capitalization suggests Sonoro’s stock is trading at bargain prices.
Share Structure
Warrants ($0.30)
73.04 million
Stock Options (WAEP $0.25)
9.85 million
Shares Fully Diluted
202.15 million
0.25
6.0
0.20
4.0
0.15 0.10
2.0 0.0
0.05
Oct-21
119.26 million
0.30
8.0
Sep-21
Current Issued & Outstanding
0.35
Aug-21
$20 million
10.0
Jul-21
Market Capitalization
0.40
12.0
Jun-21
3.9 million
May-21
Average Monthly Volume
SONORO GOLD TRADING VOLUME
Apr-21
$0.16
Mar-21
Year-Low
Feb-21
$0.39
to fund Company growth without dilution.
Jan-21
Year-High
immediate objective is clear: bring Cerro Caliche into production
Dec-20
$0.18
become a leading gold exploration and development company. Its
0.0
Share Pirce
Recent Share Price
opportunity. Management has a well-defined, realistic strategy to
Nov-20
CANADA……TSX.V: SGO USA…….OTCQB: SMOFF GERMANY……FRA: 23SP
Volume (million)
Trading Symbols
Sonoro Gold has developed into a relatively rare investment