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Technical Report, Zimapan Property, Hidalgo, Mexico

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Technical Report, Zimapan Property, Hidalgo, Mexico TECHNICAL REPORT ZIMAPAN PROPERTY HIDALGO, MEXICO Prepared for: SANTACRUZ SILVER MINING LTD. Suite 880 - 580 Hornby Street Vancouver, BC, V6C 3B6, Canada Prepared by: Van Phu Bui, P.Geo. Stephen de Wit, P.Geol. Effective Date: April 2, 2020 Report Date: August 5, 2020 Report Nº 16001RT006 SANTACRUZ SILVER MINING LTD. TECHNICAL REPORT, ZIMAPAN PROPERTY, HIDALGO, MEXICO 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 Inc., 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 (Member Number 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 with twelve (12) years of continuous field experience and four (4) years of intermittent field experience in Canada and abroad. I have worked at the Wolverine Volcanic-hosted Massive sulfide (Zn-Ag-Pb-Cu-Au ) deposit in the Yukon, Canada; XY Sedimentary Exhalative (Zn-Pb-Ag ) deposit in the Yukon, Canada; Table Mountain Mesothermal Vein (Au) project in BC, Canada; Olza Mississippi Valley Type (Zn-Pb-Ag) deposit in Silesia, Poland; and at various other base-metals and precious metals deposits in Australia, USA, and Ireland. I have also visited other precious metals projects in Mexico as a consulting geologist, including the Veta Grande Low-sulfidation Epithermal Vein (Ag-Zn-Pb-Au) project in Zacatecas State and the Picachos Low-sulfidation Epithermal Vein (Au) project in Sinaloa State. 5. I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 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 NI 43-101. 6. This report titled “Technical Report, Zimapan Property, Hidalgo, Mexico” dated effective April 2, 2020 (the “Technical Report”), is based on a study of the data and literature available on the Zimapan property. I am responsible sections 1 through 6, 8, 10, 13 and 14 of this report, and jointly contributed to all other sections of this report. I visited the property on March 22 to March 23, 2017 and on May 2 to May 4, 2017. I have not performed a recent site visit to the property. 7. I have not previously worked on this property. 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 Technical Report has been prepared in compliance with this National Instrument. 9. I am “independent” of the issuer, the vendor and the property as that term is described in Section 1.5 of NI 43 -101. Report Nº 16001RT006 1 SANTACRUZ SILVER MINING LTD. TECHNICAL REPORT, ZIMAPAN PROPERTY, HIDALGO, MEXICO 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 5th day of August 2020. [Original Signed and Sealed] Van Phu Bui, P.Geo Report Nº 16001RT006 2 SANTACRUZ SILVER MINING LTD. TECHNICAL REPORT, ZIMAPAN PROPERTY, HIDALGO, MEXICO CERTIFICATE AND SIGNATURE, Stephen P. de WIT, P.Geol. I, Stephen P. de Wit, of 3 Windmill Way Calgary Alberta, Canada,T3Z 1H5 do hereby certify that; 1. I am a consulting geologist at Stephen P. de Wit P.Geol Geological Consultant at 3 Windmill Way Calgary Alberta, Canada T3Z 1H5 2. This report titled “Technical Report, Zimapan Property, Hidalgo, Mexico” dated effective April 2, 2020 (the “Technical Report”), is based on a study of the data and literature available on the Zimapan property. I am responsible sections 7, 11, 15 of this report, and jointly contributed to all other sections of this report. I visited the property on March 30 to April 2, 2020. 3. I am a graduate of the University of Calgary (1991) and hold a Bachelor of Science degree in Geology. 4. I am a registered Professional Geologist in good standing with the Association of Professional Engineers and Geoscientists of Alberta (Member Number 52859) and have been a member since 1995. 5. I have practiced my profession continuously since 1991 in the capacity of an exploration and consulting geologist, and project manager in mineral exploration in Canada, United States, Mexico, Columbia, Chile, Paraguay, and Argentina on projects ranging from regional exploration to operating mines. I have worked on numerous base and precious metal properties in Mexico including exploration for high-sulfidation epithermal gold deposits for Alamos Gold in Mulatos Sonora Mexico, the Jacala Ag-Pb-Zn Cu CRD deposit in Hidalgo, Mexico (north east of Zimapan), the San Pedro Analco Ag-Zn-Pb past producer low sulfidation epithermal deposits in Jalisco, Mexico, the Llluvia de Oro and Tajitos low sulfidation Au-Ag deposits in Jalisco, and many other project evaluation and early stage exploration projects in Chihuahua, Sonora, Nayarit and Jalisco Mexico. 6. I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 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 NI 43-101. 7. I have not previously worked on this property. 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 Technical Report has been prepared in compliance with this National Instrument. 9. I am “independent” of the issuer, the vendor and the property as that term is described in Section 1.5 of NI 43 -101. Report Nº 16001RT006 3 SANTACRUZ SILVER MINING LTD. TECHNICAL REPORT, ZIMAPAN PROPERTY, HIDALGO, MEXICO 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 5th day of August 2020. [Original Signed and Sealed] Stephen P. de Wit. P.Geol. Report Nº 16001RT006 4 SANTACRUZ SILVER MINING LTD. TECHNICAL REPORT, ZIMAPAN PROPERTY, HIDALGO, MEXICO Table of Contents 1 Summary ............................................................................................................................................... 9 1.1 Property Description and Ownership ............................................................................................ 9 1.2 History ........................................................................................................................................... 9 1.3 Geology and Mineralization ........................................................................................................ 10 1.4 Site Inspection ............................................................................................................................. 10 1.5 Conclusions and Recommendations ............................................................................................ 10 2 Introduction ........................................................................................................................................ 12 2.1 Description of the Issuer ............................................................................................................. 12 2.2 Qualified Person Site Visit ........................................................................................................... 12 2.3 Information Sources and References .......................................................................................... 12 2.4 Term of Reference ....................................................................................................................... 13 3 Reliance on Other Experts ................................................................................................................... 14 4 Property Description and Location ...................................................................................................... 14 4.1 General Description ..................................................................................................................... 14 4.2 Agreements and Royalties ........................................................................................................... 14 4.2.1 Lease Agreement ................................................................................................................. 14 4.2.2 Carrizal Mining Acquisition .................................................................................................. 18 4.2.3 Terms and Conditions Agreement to Purchased Zimapan property ................................... 18 4.3 Grant of Concession ...................................................................................................................
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