Mineralization at the Cerro de Oro deposit is typical of a porphyry system and is characterized by the development of A and B veins. These veins developed during an early potassic alteration phase and were later overprinted by silica and sericite (phyllic overprinting) within the inter-mineral porphyritic intrusive phases. These phases form part of the overall intrusive complex.

Mineralization at the Project scale occurs within a granodioritic porphyritic stock and within its calcareous host rocks. Within the calcareous host rock zone are blocks of highly garnetized limestone that are part of the Indidura Formation. These sedimentary rocks have been uplifted by the intrusion of the granodiorite stock.

The current Mineral Resources are contained within a semicircular zone of about 1 km diameter; within this mineralized envelope the ore zones are mixed, with some lower-grade or barren zones. Most of the drilling is shallow, with an average depth of 100 m, roughly corresponding to the depth of supergene oxidation. The upper 70 m to 120 m of the mineralization has been oxidized with pyrite altered to hematite, goethite, and jarosite. The hypogene sulphide mineralization is open at depth, and along all directions.

Mineralization at Cerro de Oro consists dominantly of pyrite that is widely disseminated throughout the porphyritic granodiorite, and in hornfels and skarns developed at the contact with the sedimentary rocks. Occasionally the presence of ........

The Cerro de Oro project is planned as a conventional open pit operation that will use haul trucks and front-end loaders. Material will be drilled and blasted, before being loaded and hauled to the waste dump, crusher, or direct to the heap leach pad. Mining activities will be completed by a contractor who will supply all the required mine equipment and personnel working under the supervision of the Company’s technical staff.

The Cerro de Oro project will be mined using primarily rigid frame 100-ton haul trucks and front-end loaders with a bucket capacity in the 11.5 m3 range. Mined materials from the open pits, depending on the classification (mineral or waste), will be hauled either to a waste dump, to the crusher or placed directly on a heap leach pad.

The Project will have one leach pad along the eastern project boundary with future expansion potential to the immediate west of the planned pad. There will be two waste dumps to the south of the open pits denoted waste dump #1 and waste dump #2.

The open pit designs include pit ramps sized to accommodate 100-t haul trucks that are likely to be used for the Project. The pit ramp will have a width of 25 m (3.5X the operating width of a 100-t truck), which is large enough to accommodate two-way traffic, a drainage ditch and safety berm at the road edge. The ramp width of the final six benches will be reduced to 15 m (single lane) to improve overall mineral recoveries related to mining in the bot ........

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The sources of process water available for the Cerro de Oro project consist of groundwater wells. In mid-2022 Corex Global (a subsidiary of Minera Alamos) hired a hydrogeological consulting group to perform reviews of the Cerro de Oro area to better understand the regional water flows around Melchor Ocampo.

Seven high-priority targets have been selected by the Company for test drilling down to a maximum depth of 300 m. Many of the target areas are located north of the planned leach pad/processing plant facilities and at a distance less than 5 km.