El Aguila

The El Aguila project is located in the eastern sector of the Deseado Massif and comprises three licence blocks that cover 9,124ha. The project is located 70 km northeast of Cerro Vanguardia mine and 45 km west of Cerro Moro.

The geological interpretation of the Aguila project area is a ‘failed’ caldera environment. Structures define both ring fractures at the margins of the caldera striking as well as radial fractures hosting gold silver mineralisation within the ring structure. The NW orientation is strike-slip faults with dextral movements, and NS fractures are tensional. Post-mineral event ENE striking fault system displaces part of the vein-like mineralized structures.

El Aguila has distinct styles of mineralisation from classic low sulphidation epithermal quartz veining hosting gold-silver as well as stockwork and breccias (draped around a felsic dome complex) and a new exploration target represented by veins in sandstone.

9124 ha
Early exploration
stage
Several surface
anomalies

Aguila property is under option by Fredonia, holding 50% and a pre-emptive right on the remaining 50% subject to the agreement in place. There remains a 0.5% net profits interest on Winki II, El Aguila I, El Aguila II.

The property was previously held under option by both Coeur Argentina S.R.L and Mariana Resources Ltd, both options were apparently relinquished for corporate not geological reasons. Exploration conducted under the options was ‘classical’ including regional reconnaissance and mapping with orientation sampling, limited soil sampling, channel sampling at Aguila Main and Sur; LAG samples at San Cristóbal; geophysics, including ground magnetics and over 4,000m of diamond drilling. Previous drilling had included RC drilling.

Drilling on the project is scout exploration style and is neither advanced nor grid style systematic. However, based on the geochemical data generated to date and the interpretation of geology hosting the identified mineralisation, of the five main sectors identified to date, Aguila Main is considered the most prospective. Fredonia conducted a limited diamond drilling programme of 2,428m for 11 holes throughout the project, focusing on Aguila Main.

Aguila Maina

The mineralization is associated with a roughly E-W, arcuate to the north, rhyolite dyke emplaced in the ring structure      and is characterized by stockworks, in some cases developing breccia textures, minor hydrothermal breccias, host rock replacements and quartz veins. These veins show two orientations, one N70°E roughly parallel to the dyke’s strike; outcropping in the most eastern part of the rhyolite dyke with maximum thickness of 0.80 meters, and a second orientation of N25°E strike averaging 0.30 meters in width.

CRC-01 from 82.0m, 38m @ 0.60 g/t Au; 19 g/t Ag, including from 102m, 12m @ 1.27 g/t Au; 31 g/t Ag

Better drill intersections from the Coeur and Fredonia drilling include:

DDA-01 from 25.00m, 0.90m @ 0.71 g/t Au; 122 g/t Ag from 41.26, 1.03m @ 0.58 g/t Au; 97 g/t Ag

DDA-03 from 30.56, 0.29m @ 1.48 g/t Au; 3 5 g/t Ag from 38.11, 0.15m @ 4.01 g/t Au; 30.0 g/t Ag

DDA-05 from 39.00, 1.73m @ 0.73 g/t Au; 75 g/t Ag

DDA-42 from 299.38m, 0.86m @ 19.57 g/t Au; 41 g/t Ag

This intersection was on the contact of the dyke and the andesite

MFEA-02 from 108m, 13m @ 0.77 g/t Au; 6.0 g/t Ag including from 118m, 1m @ 7.71 g/t Au; 18.6 g/t Ag

Aguila Sur

The mineralization is associated with a roughly E-W, arcuate to the north, rhyolite dyke emplaced in the ring structure      and is characterized by stockworks, in some cases developing breccia textures, minor hydrothermal breccias, host rock replacements and quartz veins. These veins show two orientations, one N70°E roughly parallel to the dyke’s strike; outcropping in the most eastern part of the rhyolite dyke with maximum thickness of 0.80 meters, and a second orientation of N25°E strike averaging 0.30 meters in width.

Luciana – Loma colorada
DDA-25 from 42.35m, 7.00m @ 2.48 g/t Au; 16 g/t Ag
including 0.90m @ 16.43g/t Au; 83g/t Ag.

Fresia
Here two sub parallel structures have been mapped and sampled, with values of 55.87g/t Au from the west vein and 174.58g/t Au from the East vein
DDA-07 from 25.82m, 0.22m @ 13.18 g/t Au; 29 g/t Ag
DDA-08 from 48.68m, 0.55m @ 40.55 g/t Au; 107 g/t Ag
DDA-10 from 84.83m, 0.20m @ 6.16 g/t Au; 8.0 g/t Ag

Loma Blanca
Interpreted as the continuation of the Fresia west vein. Drilled by Coeur:
DDA-31 from 52.10m, 4.30m @ 1.30 g/t Au; 18 g/t Ag
including 0.3m @ 3.85 g/t Au; 96 g/t Ag
However a step back drill hole by Fredonia did not replicate the intersection at depth.

Plutón
In the eastern sector of Aguila Sur, this structure named Pluton extends over 1,000m, and contains one of the deeper intersections in the prospect area, with
DDA-22 from 58.22m, 1.33m @ 0.30 g/t Au; 45 g/t Ag
DDA-24 from 137.55m, 0.65m @ 3.36 g/t Au; 6.0 g/t Ag
This intersection which is a step back to DDA-22 has not been followed up and this structure also contains the deepest intersection in Aguila Sur.
Other named veins / radial structures include Lisa, Veronica and Guanaco.

San Cristóbal

Contained within the ring structure complex to the west of Aguila sur San Cristobal has been mapped over an area of 1,500m x 300m, elongate N-S, whilst mostly gravel covered extensive sub-crops and float of breccia with silica matrix containing rhyolitic porphyry with quartz stock works and quartz veining. The breccias are interpreted as proximal to flow domes.

Rock chip sampling by Coeur of 127 points returned an average of 0.23g/t Au; 3 g/t Ag. There were maximum values of 4.78g/t Au and 352g/t Ag. Only two  drill holes has been conducted in this prospect (DDA-41; MFEA-06), returning 0.61m @ 1.08g/t Au; <2g/t Ag, from 7.98m (DDA-41).

This prospect is considered to have potential for a Dos Calandrias style deposit and requires further systematic mapping sampling, trenching and drilling as applicable.

Verbena

This extensive >2.5km system contains in the central area outcrops of breccias, sandstones and abundant float, well-defined veins and in general alterations representative of the upper part of an epithermal system and the development of replacement structures in sandstones of the La Golondrina Formation. Mineralisation is interpreted to be related to a proximal rhyolitic dome of > 0.25km² on the south limit of the property. Micro veinlets and narrow veins form a stockwork hosted in a sandstone.

In addition to significant surface sampling, by Coeu     r up to 3.46g/t Au and 19g/t Ag, anomalous values were found in the drillhole MFEA-08. (8m @ 0.19 g/t Au; 3m @ 0.64 g/t Au and 18m @ 0.21 g/t Au).

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March 2022