Aylen

Santa Cruz Province, Argentina

Location

AYLEN Project with 2 properties: “Aylen” and “Aylen oeste” its Ag-Au vein systems; it is located in the southwest of the Macizo del Deseado; next to the "Marta mine" (Patagonia Gold) and "Manantial Espejo mine" (Panamerican Silver).

AYLEN Project has 2 well identified targets: To the north, the "Estero Vein" and that would be the continuity to the west of the principal vein system of "Martha Mine"; and to the south the "Águila Vein" which could be the continuity of the "Candelaria" system, into the "Manantial Espejo Mine".

A few years ago, this Aylen area was owned by the company Coeur; who made a few prospective drilling, both in "Estero Vein" and in "Águila Vein".

A few years ago, this Aylen area was owned by the company Coeur; who made a few prospective drilling, both in "Estero Vein" and in "Águila Vein".

Then the Project owned by “Tres Cerros Exploraciones” was for 3 years under an exploration agreement with the Canadian junior “Latin Metals”.

The northern part of the Aylen concession is situated just west of the past producing Martha mine. This precious metal deposit was previously operated by Coeur Mining Inc. and Yamana Inc. between 2000 and 2016, producing from high-grade veins and vein breccias. The Martha intermediate-sulphidation mine was distinctive due to its high silver to gold ratio, which averaged 900:1 in the first years of production. Silver grades ranged from >2500 g/t Ag in the early years to over 400 g/t Ag towards the end of production.

Air Mag

Ground Mag

The alignment of the magnetic lows and the main regional and local structures observed in this study suggests that these anomalies could be related to the presence of hydrothermal alteration zones that follow a NW-SE and NE-SW alignment. Apparently these structures have been emplaced in transpressive periods which, associated with later magmatic activity, gave rise to the mineralization strip present in the region.

Magnetometry works as an important mining prospecting tool for this area, since it allows locating the structures and alteration zones that are associated with mineralization. This suggests that these anomalies should be considered as targets for future exploration in the area.

Image RTP (Reduced To Pole)

Estero Veins

The Estero vein crops out in a dry creek bed west of the gravel road. After previous visits had reported high-grade silver values from this structure, the area was checked in more detail over 1 km along strike. On surface, the structure is developed as an anastomosing suite of quartz veins within a zone of moderately silicified wall rocks. The vein quartz is mostly fine –medium grained, crystalline, and at times sugary or drusy in appearance. Disseminated pyrite was observed in >50% of the rock samples taken from this structure, although only in trace amounts. Furthermore, tiny spots of a dark grey sulphide were encountered in a few samples (possibly tetrahedrite). Goethite and jarosite are the most common Approximately 1 km further NW, a small hill underlain by ignimbrites showed a stockwork of narrow (1-3 cm) quartz veinlets with disseminated pyrite and jarosite, enveloped by argillic alteration.

In Geochemistry, At theEstero vein in the northern part of the Aylen project, geochemical sampling returned consistently anomalous gold values between 0.11 and 0.57 g/t Au. As expected due to the vicinity to the Martha vein, three samples gave high grade silver values (118, 262, and 470 g/t Ag), while another 4 samples came back with assays between 20 and 43 g/t Ag.

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Aguila Veins

In the south-eastern part of the claim, the Aguila veinstructure was traced for almost 1 km along strike. It crops out mostly as an anastomosing suite of mm- to maximum 6 cm-sized veins. Individual veins show pinch-and-swell characteristics and can be discontinuous in places. The Aguila structure occurs within a swath of altered volcanic rocks, commonly 2-3 m, rarely 10 m wide. The alteration includes moderate argillic alteration (illite-kaolinite) and moderate to strong silicification. Locally, the veins display brecciation, with silicified wall rock fragments in the matrix. The abundance of goethite and jarosite can be described as weak to moderate.

Approximately 1.6 km NE of the Aguila structure, a new alteration zone was encountered, covered with abundant float blocks and boulders of massive silica or banded chalcedonic-microcrystalline silica and to a minor extent of finely crystalline. Brecciation is common, locally including pervasively silicified tuff clasts. Occasional opal is present in vugs or on surfaces, indicating a low temperature environment. In a small gully, sinter development was observed.

In Geochemistry,14 rock chip samples were collected along the Aguila Vein structure in thesouth-eastern part of the Aylen claim. Of those, two samples returned anomalous gold values (0.53 and 0.77 g/t Au), while another two samples showed slightly elevated values between 0.097 and 0.12 g/t Au. Silver assays are moderately anomalous at the western end of the outcropping structure (6 – 18 g/t Ag).

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