Technical Report Veta Grande Project Zacatecas State, Mexico
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TECHNICAL REPORT VETA GRANDE PROJECT ZACATECAS STATE, MEXICO Prepared for: SANTACRUZ SILVER MINING LTD. Suite 880 - 580 Hornby Street Vancouver, BC, V6C 3B6, Canada Prepared by: VAN PHU BUI, P.GEO. MICHAEL F. O’BRIEN, P.GEO. Report & Effective Date: August 20, 2019 Report No. 16001RT005 P a g e | 1 CERTIFICATE AND SIGNATURE, Van Phu Bui, P.Geo. I, Van Phu Bui, of 33086 Hill Avenue, Mission, BC, V2V 2R6, Canada, do hereby certify that; 1. I am a consulting geologist and partner at ARC Geoscience Group with a business address of 600- 1285 West Broadway, Vancouver, BC, Canada V6H 3X8. 2. I am a graduate of the University of British Columbia (2004) with a Bachelor of Science degree in Earth and Ocean Sciences. 3. I am a registered member in good standing of The Association of Professional Engineers and Geoscientists of British Columbia (Reg. No. 34774) since July 2010. 4. I have practiced my profession continuously since 2004 in the capacity of an exploration and consulting geoscientist in mineral exploration in Canada and abroad. 5. I have read the definition of “qualified person” set out in National Instrument 43-101 and certify that by reason of education, experience, and affiliation with a professional organization I meet the requirements of a “qualified person” as defined in National Instrument 43-101. 6. This report titled “Technical Report, Veta Grande Project, Zacatecas State, Mexico” dated effective August 20, 2019 (the “Technical Report”), is based on a study of the data and literature available on the Veta Grande Project. I am responsible for all sections of this report, except Section 14. I visited the property on July 9-10, 2019. No new material information has been collected since the date of the site visit. 7. I have not previously worked on this deposit. 8. As at the effective date of the Technical Report, to the best of my knowledge, information and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading. I have read National Instrument 43-101 and the report titled “Technical Report, Veta Grande Project, Zacatecas State, Mexico” has been prepared in compliance with this National Instrument. 9. I am independent of the issuer as described in Section 1.5 of NI 43 -101. 10. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication by them, including electronic publication in the public company files on their websites accessible by the public. Signed and dated this 20th day of August 2019 (signed) Van Phu Bui____ [Sealed]. Van Phu Bui, B.Sc., P.Geo. Technical Report, Veta Grande Project, Zacatecas State, Mexico August 20, 2019 P a g e | 2 CERTIFICATE AND SIGNATURE, Michael F O’Brien, P.Geo. I, Michael Frederick O’Brien, of 81-1380 Pinetree Way, Coquitlam, BC, V3E 3S6, Canada, do hereby certify that; 1. I am a consulting geologist at Red Pennant Communications & Geoscience, a company associated with Rockridge Partnership & Associates with a business address of 13693 230A Street, Maple Ridge, BC, Canada V4R 0G4. 2. I am a graduate of the University of the Witwatersrand (2002) with a Master of Science degree in Mineral Economics and of the University of Natal (1978) with a Bachelor of Science (HONS) degree in Geology. 3. I am a registered member in good standing of The Association of Professional Engineers and Geoscientists of British Columbia (Reg. No. 41338) since July 2014. 4. I have practiced my profession continuously since 1981 in the capacity of a mining geologist, resource estimation geologist, senior mining company manager and consulting geologist in Canada and abroad. 5. I have read the definition of “qualified person” set out in National Instrument 43-101 and certify that by reason of education, experience, and affiliation with a professional organization I meet the requirements of a “qualified person” as defined in National Instrument 43-101. 6. This report titled “Technical Report, Veta Grande Project, Zacatecas State, Mexico” dated effective August 20, 2019 (the “Technical Report”), is based on a study of the data and literature available on the Veta Grande Project. I am responsible for Section 14 of the report. I have not visited the property. 7. I have not previously worked on this deposit. 8. As at the effective date of the Technical Report, to the best of my knowledge, information and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading. I have read National Instrument 43-101 and the report titled “Technical Report, Veta Grande Project, Zacatecas State, Mexico” has been prepared in compliance with this National Instrument. 9. I am independent of the issuer as described in Section 1.5 of NI 43 -101. 10. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication by them, including electronic publication in the public company files on their websites accessible by the public. Signed and dated this 20th day of August 2019. (signed) Michael Frederick O’Brien____ [Sealed]. Michael Frederick O’Brien, M.Sc., B.Sc.(HONS), P.Geo. Technical Report, Veta Grande Project, Zacatecas State, Mexico August 20, 2019 P a g e | 3 TABLE OF CONTENTS 1 SUMMARY ................................................................................................................... 10 1.1 Introduction ............................................................................................................................................... 10 1.2 Location, Mining Concessions, Surface Rights and Permits ....................................................................... 10 1.3 Exploration and Drilling .............................................................................................................................. 11 1.4 Data Verification and Site Visit ................................................................................................................... 12 1.5 Geology and Mineralization ....................................................................................................................... 12 1.6 Mineral Resources ...................................................................................................................................... 13 1.7 Conclusions and Recommendations .......................................................................................................... 14 2 INTRODUCTION ............................................................................................................ 15 2.1 Description of the Issuer ............................................................................................................................ 15 2.2 Qualified Person Field Examination ........................................................................................................... 15 2.3 Information Sources and References ......................................................................................................... 16 2.4 Terms of Reference .................................................................................................................................... 16 3 RELIANCE ON OTHER EXPERTS ...................................................................................... 18 4 PROPERTY DESCRIPTION, LOCATION AND STATUS ........................................................ 18 4.1 Property Description and Location ............................................................................................................ 18 4.2 Verification of Title Status .......................................................................................................................... 29 4.3 Grant of Concession ................................................................................................................................... 29 4.4 Taxes and Fees ........................................................................................................................................... 29 4.5 Agreements and Royalties ......................................................................................................................... 29 4.5.1 Contracuña Business Alliance Agreement ............................................................................................. 29 4.5.2 Contracuña Option Agreement.............................................................................................................. 30 4.5.3 Golden Minerals Option Agreement...................................................................................................... 30 4.5.4 Carrizal Mining Option Agreement ........................................................................................................ 31 4.5.5 PCG Purchase Agreement ...................................................................................................................... 31 4.6 Surface Rights ............................................................................................................................................. 32 4.7 Environmental Liabilities and Permitting ................................................................................................... 33 4.7.1 Environmental Liabilities and Permitting Related to Mining Activities ................................................. 33 4.7.2 Environmental Liabilities and Permitting Related to Exploration Activities .........................................