Oroco Blog Update – May 24th, 2024

2024 Q1-Q2 Site Update

Site Mapping: Led by Fidel Gomez, the team has continued mapping the surface geology at Santo Tomas, but now with a focus on protolith and a greater focus on the distribution and character of the surface expression of oxide mineralization. This latter focus derives from an important part of the work being advanced towards an updated PEA – “PEA-2” (further detail below) wherein we are considering the opportunity and optionality afforded by including oxide and sulfide leaching with the Santo Tomas project development economic assessment.

In addition to the mapping, the Team now has geochronology results for a subset of the suite of samples submitted for radiometric age dating: this has aided us in refining the geology map and our project schematic chronostratigraphic section. While this remains a work in progress, the team presented the current state of our understanding at the Congreso Internacional Minero Sinaloa 2024 which ran March 13-15 in Mazatlán (https://distritosinaloa.org/ES/programa.php).

Figure 1: the updated geology in plan map / cross section and schematic section as presented by Fidel & Miguel Quintana in March.

The mapping with its additional focus on leachable resource potential has also been reconnoitering the proximal iron-gold surface expressions adjacent to Brasiles and is beginning to consider the results of remote sensed alteration mapping in the immediate project area. The data being reviewed comprise SWIR/VNIR data derived from the WorldView3 orbital platform.

Figure 2: Fidel Gomez and Rosaura Ocampo sampling surface mineralization in the pillar between north and South Zones

Mexico Mining Developments: 2024 is an election year in Mexico, and we have seen elevated political rhetoric around mining by the incumbent president on behalf of his party’s nominated successor. This has even including some pro-mining campaigning in the State of Sonora (adjacent to Sinaloa and Chihuahua / Santo Tomas), see https://miningmexico.com/plan-sonora-tiene-mucho-futuro-amlo/

In a very positive development for Oroco and all of the mining industry, early March also saw a legal order from a branch of the Mexican Supreme Court for all judges hearing amparo cases from mining companies to grant an injunction against the effect of recent amendments to mining legislation for the period of each amparo trial.  While a constitutional challenge to certain new mining-targeted legislation still must work its way through the Supreme Court, the March order appears indicative of the attitude of the courts to the legislative amendments in general and of the very high probability that the Supreme Court will strike the amendments.

Santo Tomas stakeholders should further note that the amendments to the Constitution presented in February of this year that affect the mining legislation are not expected to pass as they impact the Mexican Constitution which would require a supermajority of 2/3rds of  legislators, while the ruling party has just a simple majority. Positive sentiment in the overall business environment in Mexico, and the mining industry in particular  is perhaps reflect in increased FDI (foreign direct investment, see below) in Mexico and in the State of Sinaloa in particular.

PEA-2: Based upon the strong positive feasibility indicated by the PEA we news released and SEDAR filed in Q4 of last year, SRK has commenced improvement of the project mine plan. Co-ordinated by AUSENCO (Tucson) the metallurgy, geotechnical, mining and engineering teams at SRK/AUSENCO are working to incorporate a more detailed mining plan (and reviewing some optionality that may derive from leaching of Cu) into an updated Preliminary Economic Estimate mining and processing schedule for Santo Tomas. We hope to soon release the results of these additional engineering and metallurgical considerations in a full PEA-level release.

The more detailed mine planning is well advanced and is expected to improve early stage copper flows. In addition, a more nimble mixed mining fleet is being considered, among many other opportunities detailed in the PEA news release under the heading Project Enhancement Opportunities as well as others identified subsequently.

2024 International Mining Congress, Sinaloa: Oroco was asked to attend the Congress by the Secretariat for the State Economy of Sinaloa, and to make a keynote presentation on the Santo Tomas project. On Thursday 14th March Fidel Gomez and Miguel Quintana gave a presentation – reprising their past presentation of the geology (with subsequent Brasiles mapping, definition of the new intrusive suite at Brasiles, and the important geochronology results now included) and for the first time some of our PEA results. Their presentation was very well received, and conference organizers thanked them with a certificate of recognition.

Figure 4: Fidel presenting our compelling geochronology and tectonic / structural geological understanding of Santo Tomas.

Figures 5: Clockwise – Organizers record their appreciation to Miguel & Fidel; Andrew reviewing project power requirements with independent power supply company; Miguel presenting the case for ST comprising dominantly B-vein hosted Cu.

Figure 6: Clockwise – before and during the presentation; chatting with participants at the Sinaloa booth; and animated questions from a geologist after the presentation.

D. Ubaldo, Andrew Ware (QP for Oroco) and Ian Graham attended a number of invited engagements at the conference and they caught up with State representatives at an invited dinner.

We have also presented at the Discoveries Conference in Mazatlán during the week of May 20th and will update the BLOG when video of the presentations becomes available.

Choix update:

The esprit de corps is as upbeat as ever, and the schools are continuing to advance IT integration into daily life for primary schoolers.

¡Juntos somos más!

MX / Sinaloa FDI Scene: The present situation in the Santo Tomas project jurisdiction is well encapsulated in the following Oroco-generated slide graphic.



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These historical resource estimate models are based upon historical resource estimates prepared by John Thornton in 2011. While, in the opinion of Dane A. Bridge, author of the revised NI 43-101 standard technical report, Geology, Mineralization and Exploration of the Santo Tomas Cu-(Mo-Au-Ag) Porphyry Deposit, Sinaloa, Mexico dated April 21, 2020 (the “Report”), reliable estimation practices were used, in order to upgrade or verify the historical estimations, resampling and assay of historical drill samples, twinning of historical drill holes, and a new program of regularly spaced drilling is required. No qualified person has undertaken sufficient work to classify the current mineral resources or mineral reserves upon which these models are based and the Company is not treating the estimates as current estimates of the mineral resources. The Company gives no assurance that either these models or the historical resource estimates upon which they are based are accurate, and does not undertake any obligation to update the models or to release publicly any update or revisions of the resource estimates except as required by applicable securities law. The reader is cautioned not to rely upon these models or the historical resource estimates upon which they are based.

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