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Cocula Technical Report Draft 27 Aug 2019 Final Geology and Exploration of the Cocula Project Municipality of San Martin Hidalgo Jalisco State, Mexico Report Date: August 27, 2019 Submitted by Francisco Manual Carranza, CPG 5ta Privada de Monteverde No 315 Col. Reforma Norte Hermosillo, Sonora CP 83139 México Prepared for Silver Spruce Resources Inc. Suite 312-197 Dufferin St Bridgewater, Nova Scotia; Canada B4V 2G9. In Compliance with NI 43-101 and Form 43-101F1 TABLE OF CONTENTS TABLE OF CONTENTS ....................................................................................... i FIGURES ........................................................................................................... iii TABLES ............................................................................................................... v CERTIFICATE OF AUTHOR AND STATEMENT OF QUALIFICATIONS: .... vi GLOSSARY OF TERMS ................................................................................... vii CONVERSIONS .................................................................................................. x 1.0 SUMMARY ......................................................................................................... 1 1.1 INTRODUCTION AND TERMS OF REFERENCE ..................................................... 1 1.2 RELIANCE ON OTHER EXPERTS ....................................................................... 1 1.3 PROPERTY DESCRIPTION AND LOCATION ......................................................... 1 1.3.1 Mineral Rights ........................................................................................... 1 1.3.2 Surface Access Rights ................................................................................ 2 1.3.3 Permitting .................................................................................................. 3 1.3.4 Accessibility, Climate, Local Resources, Infrastructure and Physiography . 3 1.4 HISTORY ........................................................................................................ 4 1.5 GEOLOGY AND MINERALIZATION .................................................................... 4 1.6 EXPLORATION AND DRILLING ......................................................................... 4 1.6.1 Exploration Program .................................................................................. 4 1.6.2 Drilling ...................................................................................................... 5 1.6.3 Sample Preparation, Analyses, and Security ............................................... 5 1.7 CONCLUSIONS AND RECOMMENDATIONS ......................................................... 6 1.7.1 Data Verification and QAQC ..................................................................... 6 1.7.2 Results of Exploration ................................................................................ 6 1.7.3 Recommendations ...................................................................................... 6 2.0 INTRODUCTION AND TERMS OF REFERENCE ............................................ 7 3.0 RELIANCE ON OTHER EXPERTS .................................................................... 7 4.0 PROPERTY DESCRIPTION AND LOCATION .................................................. 8 4.1 LOCATION ...................................................................................................... 8 4.2 MINERAL CONCESSIONS AND AGREEMENTS .................................................... 9 4.2.1 Mineral Rights ......................................................................................... 10 4.2.2 Surface Exploration Rights ....................................................................... 12 4.2.3 Permits and other Considerations ............................................................. 14 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY ............................................................................................... 15 5.1 TOPOGRAPHY , CLIMATE , PHYSIOGRAPHY ...................................................... 15 5.2 VEGETATION ................................................................................................ 15 5.3 ACCESSIBILITY ............................................................................................. 15 5.4 LOCAL RESOURCES AND INFRASTRUCTURE ................................................... 16 6.0 HISTORY .......................................................................................................... 18 6.1 EXPLORATION BY TIMMINS GOLD CORP . ....................................................... 18 6.2 RESULTS OF HISTORIC EXPLORATION ............................................................ 19 7.0 GEOLOGICAL SETTING AND MINERALIZATION ...................................... 32 7.1 REGIONAL GEOLOGY .................................................................................... 32 Technical Report: Cocula Project i 7.2 GEOLOGY OF THE COCULA PROJECT .............................................................. 36 7.2.1 Andesitic rocks......................................................................................... 36 7.2.2 Intrusive rocks .......................................................................................... 36 7.2.3 Structure .................................................................................................. 36 7.2.4 Alteration and mineralization ................................................................... 36 8.0 DEPOSIT TYPES ............................................................................................... 42 9.0 EXPLORATION ................................................................................................ 42 9.1 MAPPING AND GEOCHEMICAL SAMPLING ...................................................... 43 9.2 GEOPHYSICS ................................................................................................. 47 9.3 DRILLING ..................................................................................................... 47 9.4 RESULTS OF EXPLORATION ........................................................................... 47 10.0 DRILLING ......................................................................................................... 55 11.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY ............................ 55 12.0 DATA VERIFICATION ..................................................................................... 56 13.0 MINERAL PROCESSING AND METALLURGICAL TESTING ..................... 62 14.0 MINERAL RESOURCE ESTIMATES .............................................................. 62 15.0 ADJACENT PROPERTIES ................................................................................ 62 16.0 OTHER RELEVANT DATA AND INFORMATION ........................................ 62 17.0 INTERPRETATION AND CONCLUSIONS ..................................................... 62 18.0 RECOMMENDATIONS .................................................................................... 63 19.0 REFERENCES ................................................................................................... 64 Technical Report: Cocula Project ii FIGURES Figure 4.1. The Cocula Project location in Jalisco State, western Mexico. .................................................. 8 Figure 4.2. Cocula Property. ..................................................................................................................... 9 Figure 4.3. Surface rights for the Cocula Property. .................................................................................. 13 Figure 4.4. Surface rights for the Cocula Property. .................................................................................. 13 Figure 5.1. Google earth image showing the physiography surrounding the Cocula Project. .................... 16 Figure 5.2. Cocula Project location and Access. ...................................................................................... 17 Figure 6.1. Geologic map with rock sample locations for the Cocula Project. ........................................... 20 Figure 6.2. Drill hole locations for the Cocula Project.............................................................................. 21 Figure 6.3. Gold rock geochemistry for the Cocula Project. ..................................................................... 24 Figure 6.4. Silver rock geochemistry for the Cocula Project. .................................................................... 25 Figure 6.5. Copper rock geochemistry for the Cocula Project................................................................... 26 Figure 6.6. Lead rock geochemistry for the Cocula Project. ..................................................................... 27 Figure 6.7. Zinc rock geochemistry for the Cocula Project. ...................................................................... 28 Figure 6.8. Metal zoning at the Cocula Project. ....................................................................................... 29 Figure 6.9. Cross section 0, Cocula Project. ............................................................................................. 30 Figure 6.10. Cross section 0 from Timmins, Cocula Project. .................................................................... 31 Figure 7.1. Tectonostratigraphic terranes of Mexico. ............................................................................... 33 Figure 7.2. Epithermal Precious Metal belt, Northern Mexico. ................................................................
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