Fredonia Mining Inc. Announces Filing of Technical Report for the Maiden Mineral Resource Estimate at El Dorado Monserrat Project, Argentina and Option Grant
Fredonia Mining Inc. Announces Filing of Technical Report for the
Maiden Mineral Resource Estimate at El Dorado Monserrat Project,
Argentina and Option Grant
TORONTO, Ontario, December 24 th, 2024 – Fredonia Mining Inc. (“ Fredonia” or the
“Company”) (TSXV:FRED) announces that it has filed a technical report for its wholly-
owned El Dorado Monserrat (“EDM”) Gold & Silver Project, Santa Cruz province,
Argentina (the "Technical Report") pursuant to National Instrument 43-101 "Standards of
Disclosure for Mineral Projects" (" NI 43-101 "). The Technical Report supports the
disclosure made by the Company in its N ovember 11, 2024 news release announcing the
Maiden Mineral Resource Estimate at El Dorado Monserrat Project, Argentina.
The Technical Report is titled “Maiden Mine ral Resources Estimate on the El Dorado
Monserrat Property, Gold and Silver Project Santa Cruz Province, Argentina” with an
effective date of November 8, 2024, and was prepared by Mr. Mario Alfaro Cortés, Qualified
Person (QP) as defined by Canadian Nati onal Instrument 43- 101, Chilean Mining
Commission; and Mr. Ganem Fernando, Qualif ied Person (QP) as defined by Canadian
National Instrument 43-101, member of the American Institute of Professional Geologists.
Estanislao Auriemma, CEO stated: “With the filing of the technical report and maiden
mineral resource estimate for the North and S outh deposit, we are planning a new phase of
diamond drilling to expand the high-grade gold and silver resources and then move the
Project through a Pre- Feasibility study. As the maiden mineral resource estimate covers only
a fraction of the Project, we believe we have established the baseline for significant
shareholder value, and, with our now deeper understanding of the Project's geology, we plan
to continue to significantly grow the size and quality of the mineral resource as we address
the broader Project area that de monstrates mineralization, si milar to the neighboring Cerro
VanGuardia mine. The upcoming drill campaig n is focused on demonstrating that higher
grade mineralization exists at depth consistent with the results of our deeper drill holes we
completed at Herradura Hill showing increasing grade.”
Highlights significant potential for the Proj ect; at a 0.40 g/t cut-off gold grade, the
maiden mineral resource estimate totals:
• In Pit Measured & Indicated Mineral Resource: 81.348 million tonnes grading
0.61 g/t gold and 18.76 g/t silver (0.86 g/t gold equivalent*6), containing an estimated
1.593 million ounces of gold and 49.067 mi llion ounces of silver (2.248 million
ounces of gold equivalent*6); plus limited Inferred Mineral Resource.
• The estimate produces in- pit resources for the Northern Monserrat Sector and
Southern Mineralized Corridor deposits, spaced just 5.0 km apart.
• Mineralization remains open in all directions and below the base of drilling at both
the North and South sectors, showing clear scope for further drilling to increase the
size of this initial mineral resource estimate.
• The resource estimate is based on 40,472.68 meters of drilling and 5,305.43 meters
of trenches, intersecting the resource solids. These drillings are divided into 164 holes
for a total of 27,504.22 meters for Northern Monserrat Sector and 55 holes for a total
of 12,968.46 meters for Southern Mineralized Corridor (i ncluding only Herradura
Hill target). Gold and silver grades for both sector, have been interpolated
independently.
MINERAL RESOURCE ESTIMATE STATEMENT (1-6)
Category Ktons Au Eq*
g/t Au g/t Ag g/t Au Eq*
Moz
Au
Moz
Ag
Moz
North
Measured 35,554.4 0.93 0.66 20.26 1.064 0.756 23.159
Indicated 36,481.3 0.81 0.56 18.52 0.950 0.660 21.721
Inferred 180.1 1.01 0.61 29.71 0.006 0.004 0.172
South
Measured 1,406.1 0.75 0.58 12.64 0.034 0.026 0.571
Indicated 7,906.3 0.78 0.60 14.22 0.199 0.151 3.616
Inferred 386 0.78 0.57 15.62 0.010 0.007 0.194
Total (M&I) 81,348.1 0.86 0.61 18.76 2.248 1.593 49.067
Total (Inferred) 566.1 0.85 0.58 20.10 0.015 0.011 0.366
Note: Ktons: thousands of tonnes.
Moz: millions of ounces.
Figures may not add exactly due to rounding.
(1) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The
estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation,
socio-political, marketing, or other relevant issues. It is noted that no specific issues have been identified as
yet.
(2) The quantity and grade of reported Inferred mineral resources in this estimation are uncertain in nature
and there has been insufficient exploration to define these Inferred mineral resources as an Indicated or
Measured mineral resources and it is uncertain if further exploration will result in upgrading them to an
Indicated or Measured mineral resource category.
(3) Mineral Resources were estimated utilizing S-Gems and Rec-Min software and conventional block
modeling within 3D wireframes defined on a 0.40% gold cut-off, capped composites and inverse distance
grade interpolation.
(4) The mineral resources in this report were estimated using the Canadian Institute of Mining, Metallurgy
and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines
prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.
(5) The 0.40% gold resource cut-off grade was derived from long term average Gold price of US$1,800/oz,
90.0% process recovery, 4.5% royalties, US$ 7.0/t process cost, US$ 5.0/t transportation & refining and US$
4.0/t G&A cost. An optimized pit shell was utilized for resource reporting that utilized a US$ 2.0/t mining cost
and 45 degree pit slopes.
(6) Gold grade equivalent (Au Eq) is derived from gold metal price US$1,800/oz, and silver metal price
US$24/oz. Au Eq assume Au and Ag recoveries of 90.0%. The limited metallurgical studies by Fredonia
(selective Bottle rolls from Main Veins material) have indicated high (>90%) recovery of gold in oxide material.
The Cerro Vanguardia mine to the east of EDM with similar mineralization reports recoveries in the high 90%
for Au. Accordingly, the formula used for gold grade equivalent (Au Eq) is:
Au Eq (g/t) = Au (g/t) + [Ag (g/t) x (24/1,800) x (0.9/0.9)]
SUMMARY OF SENSITIVITY RESULTS FOR GOLD CUT-OFF GRADE
Cut-off Ktons Au Eq*
g/t Au g/t Ag g/t Au Eq*
Moz
Moz
Au
Moz
Ag
0.1 131,223.6 0.71 0.49 16.53 3.016 2.086 69.754
0.2 128,674.0 0.72 0.50 16.73 2.995 2.072 69.224
0.3 110,174.7 0.78 0.54 17.48 2.747 1.921 61.916
0.4 81,348.1 0.86 0.61 18.76 2.248 1.593 49.067
0.5 46,884.5 1.02 0.72 21.87 1.534 1.092 33.111
0.6 21,994.5 1.24 0.93 23.74 0.878 0.654 16.786
0.7 12,666.9 1.45 1.13 24.06 0.592 0.461 9.797
Notes: the base case estimate presented above is subject to the same assumptions and qualifications described
in Notes 1-6 of Table 1 above.
Figure 1. Plan view of the north and south deposits (resource area in green) and their
proximity in relation to the Cerro Vanguardia Mine.
Figure 2. Plan view of the north and south deposit at El Dorado Monserrat. (Blue measured,
green indicated, red inferred).
Figure 3. Gold grade Shell with a view to th e West. Long Section of the MRE at Northern
Monserrat Sector.
US$ 1,800/oz Gold
Optimized Shell
Figure 4. Gold grade Shell with a view to th e west. Cross Section of the MRE at Southern
Mineralized Corridor (included only Herradura Hill).
Preparation of Mineral Resource Calculation
The mineral resource estimate was prepared by independent QP Mari o Alfaro Cortés of
Chile, commissioned by Fredonia Mining, and is calculated for two deposits, North and
South. The estimate was prepared according to NI 43-101 standards and the CIM Standards
on Mineral Resources and Reserves: Definitions and Guidelines (CIM 2014).
Qualified Person
Mr. Fernando Ganem, is a QP as defined by Canadian National Inst rument 43-101. Mr.
Ganem visited the property and has read and approved the technical contents of this release.
GRANT OF COMPANY OPTIONS
The Company also announces that it has granted stock options (the “ Options”) to directors
and officers of the Company in the amounts described in the table below. Each Option is
exercisable to purchase one common share of the Company (a “Common Share”) at a price
of $0.40 per Common Share, representing a signif icant premium to the market price of the
Common Shares on the TSX Venture Exchange, fo r a period five years from the grant date.
The Options have been granted in accordance with the terms of the Company’s stock option
plan and have been granted to the director s and offices in lieu of accrued cash amounts
payable for compensation for acting in those positions. The Company intends to pay cash
compensation to officers and directors in the future in accordance with historical practices.
Optionholder Number of Options Granted Exercise Price
Ali Mahdavi 200,000 $0.40
Estanislao Auriemma 200,000 $0.40
US$ 1,800/oz Gold
Optimized Shell
Optionholder Number of Options Granted Exercise Price
Waldo Perez 100,000 $0.40
Michael Doolan 100,000 $0.40
Ricardo Auriemma 100,000 $0.40
Carlos Espinosa 60,000 $0.40
About Fredonia
Fredonia holds gold and silver license areas totaling approximately 18,300 ha. in the prolific
Deseado Massif geological region in the Provin ce of Santa Cruz, Arge ntina, including the
following principal areas: its flagship - the a dvanced El Dorado-Monserrat project (approx.
6,200 ha.) located close to AngloGold Asha nti’s 300,000 oz./yr Au-Ag Cerro Vanguardia
mine, the El Aguila project (approx. 9,100 ha.), and the Pe trificados project (approx. 3,000
ha).
For further information: Please visit the Company’s website at
www.fredoniamanagement.com or contact: Estanislao Auriemma, Chief Executive Officer,
Direct +54 91 149 980 623, Email: [email protected].
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain “Forward -Looking Statements” w ithin the meaning of
applicable securities legislation relating to the Company and the EDM project, including
statements regarding the prospectivity of the EDM project for gold and silver mineralization,
including the potential for metal recoveries from any mineral processing activity, the mineral
resource estimate at the Project, the prosp ectivity for mineralization at the EDM Project
similar to mineralization at the Cerro Vanguardia mine, and the Company’s future
exploration plans. Words such as “might”, “will”, “should”, “anticipate”, “plan”, “expect”,
“believe”, “estimate”, “forecast” and simila r terminology are used to identify forward
looking statements and forward- looking information. Such stat ements and information are
based on assumptions, estimates, opinions and analysis made by the Company considering
its experience, current conditions and its expectations of future developments as well as other
factors which it believes to be reasonable a nd relevant. Forward-looking statements and
information involve known and unknown risks, un certainties and other factors, including,
without limitation, the factors described in the Company’s fi ling statement dated June 22,
2021 available on SEDAR at www.sedar.com unde r the heading “Risk Factors” that may
cause actual results to differ materially fro m those expressed or implied in the forward-
looking statements and information and accordingly, readers should not place undue reliance
on such statements and information and the Co mpany can give no assura nce that they will
prove to be correct. The statements in this press release are made as of the date of this release.
The Company undertakes no obligation to update forward-looking statements made herein,
or comment on analyses, expectations or statemen ts made by third parties in respect of the
Company or its securities, other than as required by law.