The observed geological and geochemical characteristics of the La Pava and Quema-Quemita gold deposits at Cerro Quema are consistent with those of volcanic hosted, epithermal, high sulfidation (HS) gold-silver deposits.

The Cerro Quema project is spatially associated with the E-trending regional Rio Joaquin fault system. The fault zone is 30 km long and shows evidence of reverse dip-slip movement. It juxtaposedAzuero Igneous basement rocks against Azuero Arc Group rocks. Mesoscale open folds in the region have SW plunging axes and moderate limb dips, indicative of dextral transpression with dominant reverse dip-slip motion (Isaac Corral 2016). The Cerro Quema mineralized zone lies 1.5 to 3km north of the Rio Joaquin fault. Longo has postulated sinestral movement along the most prominent of the NE striking faults, possibly resulting in dismemberment of an originally continuous mineralized zone with the La Pava zone being the left lateral offset of the Quema-Quemita deposit (Longo 2018).

Distinct styles of mineralization observed today are due primarily to supergene effects on the primary mineralization. The known mineralized zones (Pava, Quema-Quemita, Idaida-Caballito, Pelona) were likely similar to Caballito before oxidation. Three mineralization styles are observed:

1. Epithermal high sulfidation Au mineralization, associated with variably intensely developed advanced argillic alteration of dacitic rocks with local areas of silicification and leaching resulting in vuggy silica alteration typical of high sulfidation epithermal deposits. Gold is associated with pyrite and enargite deposition (Longo 2018) and is present as submicroscopic grains and as invisible inclusions in pyrite (Isaac Corral 2016).

2. Cu-Au mineralization, exemplified by the Idaida-Caballito mineralized zone, that differs from the other mineralized zones in its relatively high Cu content and a strong Cu-Au association. Copper mineralization is associated with hypogene pyrite, bornite, chalcopyrite, and enargite and occurs as an irregular breccia body with sulfide cement. Type 2 mineralization postdates formation of the Type1 high sulfidation mineralization and is superimposed upon it, but formed as part of the same mineralizing event as ore fluid chemistry evolved from high sulfidation to intermediate sulfidation conditions iscrete gold mineralized zones have been identified by drilling and surface mapping along an EW trending zone of hydrothermal alteration of dacitic volcanic rocks of the Rio Quema Formation. The mineralized belt extends from La Pava West at the western end to La Pelona, 11 km further east.

3. Cu-Au mineralization at La Prieta, an altered and mineralized zone centred upon a Miocene quartz diorite intrusion, occurs 2.6 km south of the main E-W belt of mineralization. Disseminated and fracture-controlled pyrite and chalcopyrite is associated with intermediate argillic alteration conditions (Longo 2018). This mineralized zone has not been studied in detail nor drilled.

Mineralization style 1 corresponds to the mineralized deposits at La Pava and Quema-Quemitaand style 2 corresponds to the Caballito Cu-Au deposit. Mineralized zones thus far identified, and their type, high sulfidation (HS) or intermediate sulfidation (IS) and metals of interest (gold, copper, silver), include:
- La Pava West, HS, Au;
- La Pava, HS, Au;
- Chontal, HS, Au;
- Quema-Quemita, HS, Au;
- Sombrero, HS, Au;
- Idaida, IS, Cu, Au;
- Caballito, IS, Cu, Au;
- Howler, LS vein, Au;
- Picadores, unstudied, Au;
- Placetas, unstudied, Au;
- La Pelona, HS, Au;
- La Prieta (south of main trend, younger), Cu, Au.

Vuggy quartz alteration, occurring as irregular funnel and tabular shaped bodies, is made up of microcrystalline anhedral quartz grains, disseminated pyrite, barite, rutile, covellite, bornite, and chalcocite (Longo 2020) and traces of sphalerite (Isaac Corral 2016). At depth, vuggy quartz contains disseminated pyrite, enargite, chalcopyrite, and tennantite (Isaac Corral 2016). The vuggy texture results from acid leaching of once present hornblende and plagioclase. Oxidation of sulfides resulted in formation of gossanous and intensely iron oxide pigmented exposures at surface. Vuggy quartz alteration zones are contained within an irregular halo of advanced argillic alterationdefined by silicification accompanied by the presence of alunite and/or dickite, pyrophyllite, barite, illite, and diaspore. The advanced argillic alteration assemblage observed at Cerro Quema is typical of high sulfidation epithermal deposits.

Epithermal high sulfidation gold mineralization is hosted predominantly by silicified and leached zones found within broader zones of advanced argillic alteration. Advanced argillic and argillic alteration zones host lesser amounts of gold mineralization.

Complete oxidation is observed in the uppermost portions of both the La Pava and QuemaQuemita mineralized zones.

At Quema-Quemita, complete oxidation forms an irregular zone mimicking topography and extends to depths of as much as 100m below the present topographic surface. Nearly the entirety of the vuggy silica altered zone is oxidized, and in places the oxide boundary forms a downward prominence following the shape of the vuggy silica zone, apparently as a function of increased downwardpercolation of meteoric waters within the highly permeable vuggy silica zones. The contact with underlying non-oxidized rock is generally sharp. At Quema-Quemita, the oxidation boundary often corresponds with the limit of vuggy silica or argillic alteration.

At La Pava the oxidation zone mimics topography but is more irregular than that of QuemaQuemita, and pods of oxidized material within unoxidized material, and vice versa, are more common. At La Pava oxidation extends to maximum depths of 150m below surface but is typically less than 100m. In contrast to Quema-Quemita, at La Pava, significant volumes of the vuggy silica alteration zone are not oxidized and the oxidation boundary does not closely follow the alteration zones.

At Caballito, the mineralized zone lies almost entirely beneath the oxide zone and Caballito comprises sulfide mineralization.

The mineralization at Cerro Quema is hosted by a submarine dacite dome complex developed during the period ~65 to 75 Ma during a subduction related magmatic event (Longo 2020). Hydrothermal mineralizing fluids associated with a younger magmatic event estimated at ~55 to 49 Ma (Isaac Corral 2016) mineralogically altered the dacitic rocks, creating advanced argillic mineral assemblages an leached silicified rock (vuggy silica). Multiple hydrothermal plumes related to the magmatic event were localized at structural intersections and affected the rocks, resulting in Au and Cu-A deposition, dominantly in vuggy silica rock and hydrothermal breccias, forming irregular tabular mineralized zones. Meteoric oxidation and supergene leaching resulted in Cu depletion and Au enrichment in the oxidized vuggy silica bodies. An oxidation zone defined by complete destruction of sulfide minerals, extends to depths of as much as 150m below surface, resulting in oxidized gold deposits at La Pava and Quema-Quemita, and at La Pava, supergene Cu concentrations developed below the oxide gold zone. At both La Pava and Quema-Quemita, unoxidized primary sulfide mineralization with variable amounts of Au and Cu are present, but do not form any of the Mineral Resources or Reserves.

The Project includes detailed pit designs and phases for the La Pava and Quema pits.

Mine operations are planned to be typical of similar small scale open pit operations, consisting of conventional drill, blast, load, haul, and stockpile operations. Direct Mining and Mine Maintenance is planned as Owner operated mining operations. The Owner will be responsible for all equipment mob/demob, operating, and labour costs as well as maintenance of the mining equipment. Blasting unit operations will be performed by a specific blasting company contractor. Supervision, geology and mine planning will be done by the Owner.

Both the La Pava and Quema deposit are located on steep terrain which presents opportunities and challenges for roads, phasing, and ultimate pit designs. In both pits initial haulage roads are designed to take advantage of the natural slopes and gain access to the top of deposits. These initial access haulage roads allow the pits to leave limited ramps in the final design high walls.

Quema Pit Design
The Quema ultimate pit is split into 2 phases after the access cut has been established, to begin stripping and ore mining. The access cut was designed to minimize rehandle of fill slopes within the ultimate pit limit. Any near surface ore intersected during pre-production is sent to stockpile.

Phase 1 is split into 2 sub phases for operational considerations to allow the east and central hilltops to be mined at different rates. Phase 1 contains the majority of the Quema deposit including low stripping ratio and near surface ore in the top benches of the ultimate pit referenced as Phase 1E.

The ultimate pit including the lower elevation west Phase 2. Phase 2 was designed to be mined with a slower sinking rate than Phase 1, due to size and access constraints. The haul road built into the highwall of Phase 2 is designed for single lane traffic only, until connecting in with the Phase1 ramp system. All phases utilize the same main external haul road. This road was designed to exit the pit as close and low as possible to the plant site.

La Pava Pit Design
The La Pava ultimate pit is split into 2 phases after the access cut is established. Phase 1 targetsthe higher revenue material and contains approximately 1.5 years of continuous ore mining.

For operational considerations Phase 2 is split into 3 sub-phases: west, central, and east. Phase 2W to the west and 2E to east of Phase 1. Phase 2C mines th central area, mining beneath and to the north and northeast of Phase 1. To avoid requiring surface access roads for Phase 2W, Phase 2C cannot mine below the 465 elevation until Phase 2W is mined out. All phases utilize the same main external haul road. This road was designed to exit the pit as close and low as possible to the plant site.

The ultimate pit in La Pava depletes the central area of the deposit and minimizes ramps in the final wall.

Material that does not meet economic cut-off grade will be stored in the Chontal Waste Rock Dump located between the La Pava and Quema ultimate pit limits. The Chontal Waste Rock Dump (WRD) design has been completed by Anddes and accommodates 9.1 Mm3 (18.2 Mtonnes). This represents sufficient capacity to contain all waste rock produced by the production schedule (13.6M tonnes). The proposedWRD has a maximum height of 89 m and will be constructed at 2.5H:1V benched slopes with a2.75H:1V overall slope angle.

Ore Stockpiles
Ore mined from the pit will either be delivered to the primary crusher and further on to the heap leach facilities or it will be delivered to temporary ore stockpiles. The grade of the material sent to the ore stockpile is variable and determined by the scheduling program optimization. There is a separate ore stockpile for each pit area, as well as a common stockpile located adjacent to the primary crusher. The locations and design of the stockpiles have been completed by KCA. The maximum stockpile size is capped at 500k tonnes and the mine production schedule approaches this maximum during Pre-Production and again in Year 4 ofoperations. The ore stockpile is fully reclaimed in Year 6 of operations.

Mine Production Schedule
The open pit mine production schedule is based on the following parameters:
- 1 year of pre-production and pre-stripping;
- Quarterly scheduling periods for first 2 years, then annual periods after that;
- Scheduling window size set to 4 periods (i.e., 4 periods are optimized simultaneously);
- Crusher throughput of 10,000 tpd;
- Phased pit bench reserves are used as input to the mine production schedule;
- Maximum 12 benches mined from a single phase in one year (1 bench per month), with the exception of Quema Phase 2 which has a maximum of 6 benches per year;
- Partial bench mining is allowed, however, partial cuts from previous periods must be completed in following periods;
- Variable cut-off grade strategy is used to maximize NPV, with excess ore tonnes above minimum cutoff grade sent to ore stockpiles;
- Simultaneous operations in both the La Pava and Quema pit areas when appropriate.

- subscription is required.

Ore will be mined using standard open pit mining methods and delivered to the crushing circuit using haul trucks which will direct dump into a dump hopper; a front-end loader will feed material to the dump hopper as needed from a ROM stockpile located near the primary crusher. The crushed product will be conveyed from the crushing circuit and stockpiled using a fixed stacker near the heap. Stockpiled material will be reclaimed by belt feeders and conveyed to the conveyor stacking system. Pebble lime will be added to the reclaim conveyor for pH control before being stacked onto the heap; cement agglomeration is not required. Barren process solution will be added to the ore once it is over the lined leach pad.

Loaded carbon from the CIC will be stripped using a pressure Zadra desorption circuit in 2.5- tonne batches. During the desorption process, gold and silver will be continuously extracted by electrowinning from the pregnant eluate concurrently with desorption. The gold ........