Sonoro Files Ni 43‐101 Technical Report FOR the Cerro Caliche Project IN Mexico
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SONORO FILES NI 43‐101 TECHNICAL REPORT FOR THE CERRO CALICHE PROJECT IN MEXICO
V A N C O U V E R , C a n a d a , J u l y 2 6 , 2 0 1 9 ‐ S o n o r o M e t a l s C o r p . , ( “ S o n o ro” or the “Company”) (TSXV: SMO)
(OTCQB: SMOFF) announced today that it has filed National Instr ument 43‐101 technical report for its Cerro
Caliche gold project on SEDAR at www.sedar.com, and on the Comp any’s website at
www.sonorometals.com.
The independent Technical Report titled “NI 43‐101 Technical Report on the Cerro Caliche Gold Project,
Cucurpe Mining District of Sonora State, Northwestern Mexico”, dated July, 26, 2019 (the “Technical Report”)
was prepared by independent Qualified Persons, Derrick Strickland, P.Geo., and Robert Sim, P.Geo., Sim
Geological Inc.
Estimate of Mineral Resources for the Cerro Caliche Project
Category Tonnes
(000)
Average Grade Contained Metal
AuEq
(g/t)
Au
(g/t)
Ag
(g/t)
AuEq
(koz)
Au
(koz)
Ag
(koz)
Inferred 11,470 0.545 0.495 4.3 201 183 1,601
Note: The estimates in the above table are limited inside the $1 , 5 0 0 / o z A u p i t s h e l l . T h e b a s e c a s e c u t ‐ o f f
grade is 0.25 g/t gold equivalent (AuEq), where AuEq = Au g/t + (Ag g/t x 0.01133). Mineral resources are not
mineral reserves because the economic viability has not been demonstrated. There are no mineral reserve
estimates for the Cerro Caliche project. It is reasonably expec ted that a majority of Inferred mineral
resources could be upgraded to Indicated (or Measured) mineral resources with continued exploration.
Kenneth MacLeod, President and CEO of Sonoro commented, “The establishment of a maiden estimate of
mineral resources at Cerro Caliche provides a strong foundation from which potentially to expand the
mineralization along strike and at depth from many of the mineralized zones documented in the Technical
Report. We are pleased to confirm that many of the recommendati ons contained in the Technical Report are
either being actively pursued, or will be implemented shortly, including; metallurgical testing, 3D modelling
of the structure, and a 7,000 meter drilling program comprising diamond drilling and reverse‐circulation
drilling to increase the confidence of the known mineralization and to identify potential expansion of known
mineralization.”
Resource Estimate
The estimate of mineral resources is based on a total of 21,091 meters of reverse circulation drilling in 200
holes. Of these, 10,328 meters in 96 holes were drilled by Sono ro, plus 7,725 meters in 86 holes were drilled
by Corex Gold and 3,038 meters in 18 holes were drilled by Page t Southern, both previous operators of the
Cerro Caliche project. The reported mineral resources were esti mated using a three‐dimensional block model
with a nominal block size of 6 x 6 x 5 meters (LxWxH). Drill ho les, collared from surface, penetrate the steeply
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dipping mineralized zones to depths of generally within 125 meters below surface but several holes have
intersected gold mineralization to depths approaching 200 meters below surface.
The resource estimate was generated using drill hole sample ass ay results and the interpretation of a
geological model which relates to the spatial distribution of g old and silver. Interpolation characteristics are
defined based on the geology, drill hole spacing, and geostatis tical analysis of the data. The effects of
potentially anomalous high‐grade sample data, composited to 1.5 ‐meter intervals, are controlled using both
traditional top‐cutting as well as limiting the distance of influence during block grade interpolation.
Block grades are estimated using ordinary kriging and have been validated using a combination of visual and
statistical methods. Mineral resources in the Inferred category extend for a maximum distance of 100 meters
from a drill hole.
The estimate of mineral resources is constrained within a pit shell to establish reasonable prospects for
eventual economic extraction. The pit shell was generated using the following projected technical and
economic parameters:
M i n i n g ( o p e n p i t ) U S $ 1 . 7 5 / t
P r o c e s s i n g U S $ 6 . 8 0 / t
G & A U S $ 1 . 5 0 / t
G o l d p r i c e U S $ 1 , 5 0 0 / o z
S i l v e r p r i c e U S $17.00/oz
Gold process recovery 72%
Silver process recovery 30%
S G 2 . 5 0
P i t s l o p e 5 0 d e g r e e s
Gold Equivalent calculation AuEq = Au g/t + (Ag g/t x 0.1133)
Base case Cut‐off grade 0.25 g/t AuEq
Geology
The Cerro Caliche deposit exhibits features that are typical of low‐sulphidation epithermal style deposits.
Mineralized zones are often structurally controlled and extend for strike lengths of up to 1 km and to depths
approaching 200 m below surface.
Many of the mineralized zones remain “open” along strike and at depth. Numerous other mineralized zones
have been identified by surface mapping and surface geochemical rock sampling.
The majority of the rocks that host the mineral resources at Ce ro Caliche are highly oxidized and it is likely
that the deposit is amenable to low‐cost heap leach extraction methods. There are several proximal deposits
that have similar geologic characteristics that are currently extracting gold and silver through heap leach
extraction.
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Conclusions
B a s e d o n t h e e v a l u a t i o n o f t h e d a t a a v a i l a b l e f r o m t h e C e r r o C al i c h e P r o j e c t , t h e a u t h o r s o f t h e T e c h n i c a l
Report have drawn the following conclusions:
The Cerro Caliche deposit exhibits features that are typical of low‐sulphidation epithermal style
deposits. Mineralized zones are often structurally controlled a nd extend for strike lengths of up to 1
km and to depths approaching 200 m below surface.
Many of the mineralized zones remain “open” along strike and at d e p t h . N u m e r o u s o t h e r
mineralized zones have been identified by surface mapping and surface geochemical rock sampling.
Exploration activities conducted by Sonoro and the previous operators of the property followed
industry standards, and the resulting database is considered to be reliable to support estimates of
mineral resources.
Drilling to date has outlined an estimated Inferred mineral res ource of 11.5M tonnes at an average
grade of 0.495 g/t gold and 4.3 g/t silver. It is assumed that the mineral resource is potentially
amenable to open pit extraction methods.
Preliminary metallurgical test work has only recently been init iated by Sonoro. The majority of the
rocks that host the mineral resources at Cerro Caliche are highly oxidized and it is likely that the
deposit is amenable to low‐cost heap leach extraction methods. There are several proximal deposits
that have similar geologic characteristics that are currently e xtracting gold and silver through heap
leach extraction.
T h e a u t h o r s o f t h e T e c h n i c a l R e p o r t a r e n o t a w a r e o f a n y k n o w n factors related to metallurgical,
environmental, permitting, legal, title, taxation, socio‐econom ic, marketing or political issues which
could materially affect the mineral resource estimates.
Recommendations
Based on the review of the data provided, the authors recommend the following next steps to advance the
Cerro Caliche project:
Conduct a drilling program that includes:
o A 500 m infill drilling program comprising large diameter (PQ) core to provide valuable
structural and mineralization information.
o A 6,500 m reverse‐circulation drilling program to increase the confidence of the known
mineral resource and identify potential expansion of known mineralization.
Conduct a detailed metallurgical analysis of the known mineralized area.
Review the existing data to integrate the geology, alteration, observations, and known structure into
a 3D model. This will help target areas for potential expansion.
Continue to explore for extensions of existing mineralized zones.
Drill a series of diamond drill holes in each mineralized zone to gain additional information related to
geologic and metallurgical characteristics.
Conduct a suite of cyanide soluble gold assays on a select suit e of samples to better understand the
nature and distribution of soluble gold.
Attempt to locate the older drilling data generated by Cambior.
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Geologic Description
The 1,350‐hectare Cerro Caliche concessions are located 45 kilo meters east southeast of Magdalena de Kino
in the Cucurpe‐Sonora Mega‐district of Sonora, Mexico. Multiple historic underground mines were developed
in the concession including Cabeza Blanca, Los Cuervos, Japones es, Las Abejas, Boluditos, El Colorado, Veta
de Oro and Espanola. Mineralization types of the Cucurpe‐Sonora Mega‐district include variants of
epithermal low sulfidation veins and related mineralized dikes and associated volcanic domes. Local altered
felsic dikes cut the mineralized meta‐sedimentary rock units an d may be associated with mineralization both
in the dikes and meta‐sedimentary rocks.
Host rocks include Jurassic‐Cretaceous meta‐sedimentary rock un its including argillite, shale, quartzite,
limestone, quartz pebble conglomerate and andesite. Younger intrusive rock consisting of medium coarse‐
grained granodiorite‐granite is present in the westerly parts of the concessions near the historic Cabeza
Blanca mine. It is apparent that veining cuts and pervasively alters the intrusive stock. Rhyolite occurs in
irregular bodies distributed in higher elevations in the northe rly part of the concession, including the Rincon
area, where it occurs as flows, sills, dikes and rhyolite domes . Part of the rhyolite is mineralized and appears
to be related to epithermal gold mineralization throughout the property.
Robert Sim, P.Geo., a Qualified Person as defined by NI 43‐101, is responsible for the estimate of
mineral resources presented in this news release and has review ed, verified and approved the contents
of this news release as they relate to the mineral resource estimate.
Stephen Kenwood, P. Geo., a director of Sonoro, is a Qualified Person within the context of National
Instrument 43‐101 and has read and approved this news release.
About Sonoro Metals Corp.
Sonoro Metals Corp. is a publicly listed exploration and development company with two exploration stage
p r e c i o u s m e t a l p r o p e r t i e s i n S o n o r a S t a t e , M e x i c o . T h e c o m p a n y has highly experienced operational and
m a n a g e m e n t t e a m s w i t h p r o v e n t r a c k r e c o r d s f o r t h e d i s c o v e r y a nd development of natural resource
deposits.
On behalf of the Board of SONORO METALS CORP.
Per: “Kenneth MacLeod”
KENNETH MACLEOD
President & CEO
For further information, please contact:
Sonoro Metals Corp. ‐ Tel: (604) 632‐1764
Email: [email protected]
Forward‐Looking Statement Cautions:
This press release contains certain "forward‐looking statements " within the meaning of Canadian se curities legislation, relating
to, among other things, the Company's plan to continue its exploration and metallurgical testing activities on its Cerro Caliche
Group of Concessions, located in the municipality of Cucurpe, Sonora, Mexico, including the belief that a majority of inferred
mineral resources could be upgraded to Indicated (or Measured) mineral resources with continued exploration. Although the
Company believes that such statements are reasonable based on current circumstances, it can give no assurance that such
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expectations will prove to be correct. Forward‐looking statemen t s a r e s t a t e m e n t s t h a t a r e n o t h i s t o r i c a l f a c t s ; t h e y a r e
generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects,"
"aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would,"
"may," "can," "could" or "should" occur, or are those statement s, which, by their nature, refer to future events. The Company
cautions that forward‐looking statements are based on the belie fs, estimates and opinions of the Company's management on
the date the statements are made and they involve a number of r isks and uncertainties, including the possibility of unfavourable
interim exploration results, the lack of sufficient future fina ncing to carry out exploration plans, and unanticipated changes in
the legal, regulatory and permitting requirements for the Company’s exploration programs. There can be no assurance that such
statements will prove to be accurate, as actual results and fut ure events could differ materially from those anticipated in su ch
statements. Accordingly, reade rs should not place undue relianc e on forward‐looking statements. The Company disclaims any
intention or obligation to update or revise any forward‐looking statements, whether as a result of new information, future
events or otherwise, except as required by law or the policies of the TSX Venture Exchange. Reade rs are encouraged to review
the Company’s complete public disclosure record on SEDAR at www.sedar.com.
THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL, OR THE SOLICITATION OF AN OFFER TO BUY, NOR SHALL
THERE BE ANY SALE OF SECURITIES OF THE COMPANY IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE
WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH
JURISDICTION.
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