Site Activities Update, to June 1, 2023

Project field work since the March 25 Update included the completion of drilling using the modified underground drill rig, surface geology mapping and a campaign of digging with hand tools to continue to locate historical drill hole collars.

We also hosted visits by the technical QPs (Qualified Persons) for the MRE (Mineral Resource Estimate – since News Released – and the PEA (Preliminary Economic Assessment).

Drilling: Hole N047 continued drilling from 526m last reported, and was terminated at 663.8m, to complete the Santo Tomas Phase 1 drilling program.

Since our last BLOG, when we indicated that all the samples for N045 and N046 had been shipped to the laboratory, we shipped 405 samples of N047, representing the entirety of that hole along with the requisite standards, duplicates and blanks. All of the results for N046 and N047 have since been publicly released.

Surface geological mapping: Mapping has been focused along the western flank of the area between the North and South Zones and on the SW extent of the South Zone where drilling has as yet not been conducted. The mapping has been focused on recognizing and measuring structural (fault) features and has located areas of outcropping mineralization, as shown in a short video-log of the area.

Historical collar location: A systematic search for historical collars has continued, and where located these have been re-surveyed to the project grid datum. This initiative is proceeding well, and in general we have been finding collars close to where they have been projected to be. Earlier in the initiative we sought and located some hole collars in South Zone that were significantly offset from the locations derived from the historical site grids (see the March 25th Update): however, as we progress the campaign we are finding that the North Zone holes locations are more reliable.

QP visit: We enjoyed hosting a rigorous MRE/PEA visit from the resource and surface mapping QPs for SRK Consulting at the end of March (as drilling was concluding). SRK comprehensively reviewed field activities and the core shack processes and procedures.

QPs on site – March 31, 2023

Clockwise from top left: map and outcrop review, Fidel explaining; Scott & Ron from SRK scrutinize core with Oroco’s Miguel Quintana assisting (x 2); Q and A in the Core Storage facility, Ranchito.

Scott from SRK with the core sawing & sampling team after the sampling review.

Oroco staff review logging, sampling and the Geotech work suite with Scott from SRK. QP visits are rigorous and detailed….

Project model reviews and site closeout meeting. Thanks Scott & Ron for the visit and the opportunity to show the project, and for the detailed professional engagement and discussions ahead of your mineral resource work!

Since the visit we have reduced the site complement, and the remaining team has been focused on data preparation for the MRE and PEA reports, which are in progress.

Social Work:

Engagement with the Escuala Primeria Indigena, Amado Nervo revealed safety issues around connecting drainages that limit access for children and staff during the late school year once the monsoons start. Oroco assessed what might be done to help and have completed basic to resolve the problem.

Additionally, welders from our workshop used some of our metal scrap and to make up soccer goal posts and swings.

Swings and goals in construction at Ranchito before deployment to the school (left) and Alejandro getting some markers out for the earth works.

Equipment improving the play area.

Discoveries Conference, Mazatlán

From May 30 to June 1 we attended the Discoveries Conference, maintaining our annual attendance since 2020. Our presence in 2020 connected us with ALL our suppliers, and we’ve had a good speaking slot every year since. Every supplier we have used at Santo Tomas – including DIAS (the 3D DCIP company from Saskatchewan) – attends Discoveries each year. It has been an annual opportunity to refresh contacts, officially meet with our suppliers, and to negotiate solid rates and front-of-line support.

The Oroco ‘core booth’ display – much interest and engagement. In the left image, Snr Omar Juan, Sec. of Economy for Mining, Sinaloa looks on from adjacent the banner.

This year Discoveries brought through some children's delegations - replete with hardhats! Anjuli, formerly our Xochipala administrator and now leading Women in Mining Sinaloa (our Doris Castro is their Secretary) worked with Doris to induct the children, and Doris former life as a teacher shone through. The kids all made off with Oroco pens...but not before watching Rosaura's little open pit at Santo Tomas video presentation!

The children in front of the Oroco core booth, Anjuli in the foreground and Doris keeping an eye on things from behind. Your scribe was keeping a safe distance.

This year we requested a second speaking slot so that, in addition to the usual corporate & project update we have previously offered, we could present the geology. Andrew and Ian shared the first slot, Andrew delivering a very well received introduction to the Mineral Resource Estimate. It was Andrew’s first presentation in Spanish in some 20 years, and he received many compliments from very appreciative conference attendees.

Andrew introducing the MRE (Mineral Resource Estimate)

and Ian reviewing the Phase 1 drilling….

On Thursday afternoon Oroco geologists Fidel Gomez and Miguel Quintana left no one in attendance in any doubt that we are establishing a very strong and definitive geological understanding of the project, its tectonostratigraphic assembly, emplacement mechanics and its anomalism in the world of porphyry coppers…

Fidel set the stage….



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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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