Summary

Deposit type

• Epithermal

Summary:

The property occurs on the eastside of the Dragoon Mountains and is underlain by mixed mafic to felsic peralkaline volcanic rocks. A fault of regional extent bounds the property to the west, and alluvium covers the eastern, northern, and southern extents of the property. A prominent hill, the Mexican Hat Hill dominates, and several smaller hills define the physiography of the property. Several structures of more local extent can be observed on the flanks of the hills on the property and defined by geophysics.

The basal unit is a light-coloured thick rhyolite breccia consisting of a polylithic tuff to tuff breccia including fragments of limestone, argillite, andesite, and latite up to 20% in places. No primary structures were observed. Fragments up to several meters were noted within the dominantly lapilli-tuff. Rhyolite is exposed near the base of Mexican Hat Hill to the south and southeast as well as to the northwest, with limited exposures to the west.

A dark grey-green porphyritic basalt (trachybasalt) flow conformably overlies the rhyolite. Large brecciasized fragments of this unit occur within the rhyolite immediately below the basalt. Euhedral phenocrysts of pyroxene, amphibole, and to the south, biotite (pseudomorphs after pyroxene) occur within the basalt. A transition to a trachyandesitic flow is demarked by the addition of euhedral feldspar phenocrysts to the flow. The preponderance of phenocrysts to the east of Mexican Hat Hill gives the unit a decidedly trachytic appearance. The basalt – andesite is exposed to the north, east and in a limited fashion to the south of Mexican Hat Hill.

A medium to light grey latite to quartz latite is exposed at higher elevations on Mexican Hat Hill, and on some smaller hills to the east-northeast and south-southeast of Mexican Hat Hill. This unit occurs dominantly as a crystal to lapilli tuff, to agglomerate and minor tuff breccia. In places, the latite displays lamination or banding interpreted as bedding.

The rock names and descriptions are supported by petrographic analysis carried out by Vancouver Petrographics.

Mineralization
Gold mineralization is associated with moderate to strong oxidized zones of hematite and limonite. Hematite and limonite are directly related to and fill, in part, dominant NE/SW fault and related fractured zones including secondary NW/SE fault and fractured zones. Hematite may be the result of low-temperature alteration of primary or secondary magnetite. Limonite, a secondary mineral after pyrite is common in surface oxidized zones. Malachite and azurite were observed in several locations across the property within trachyte andesite. In addition, the main elevated metal assemblage from assay results include Au, Ag, As, Hg and Sb. Limits of mineralized zones have not been determined. No sulphides or visible gold has been identified from surface exploration campaigns.

Alteration
Three main types of alteration are recognized on the Mexican Hat property. First, carbonate alteration is the most common within all Tertiary volcanic rocks mapped on the property. Carbonate alteration is pervasive and ranges from weak to strong. Second, weak propylitic alteration (epidote + weak chlorite in part) was observed and is associated with zones of fracturing accompanied by strong hematization. Third, weak to moderate silicification was observed within and adjacent to some extensional structures. Sericite and K-Feldspar alteration typical of low sulphidation alkali epithermal deposits may be present but these types of alteration were not observed. A Pima or suitable alteration survey may be useful in identifying all alterations present in the main elevated gold/silver zones.

Structure
Brittle faults were mapped at the Mexican Hat property within Tertiary volcanic rocks. Faulting is more common than fractures in oxidized mineralized (hematite/limonite) zones. Three types of faulting were recognized and are listed below in order of importance:
• Oblique-Slip faults are most common and were observed and mapped (Detailed mapping: TR 1, TR 2, and TR 4) in most continuous chip trenches. Oblique-slip faults display both a strike-slip and dip-slip component and results from a combination of shearing and tension produced by compressional forces;
• Normal Faults occur throughout the mapped trenches on the Mexican Hat property and are caused by tensional forces and results in extension;
• Reverse faults are less common on the Mexican Hat property. This fault motion is caused by compressional forces and results in shortening.

Deposit Types
Porphyry-style mineralization including skarn-type end members containing economically recoverable copper, gold, and sometimes lead, zinc, silver and molybdenum occur in this part of Arizona. The Courtland Gleeson district extends up to and may include the Mexican Hat Property. This mineralization is primarily hosted within Mesozoic sediments and younger intrusions. Placer gold deposits occur in places in washes near the base of the Turquois Mountains.

Younger mineralization hosted in rocks including Tertiary volcanic rocks occur in the area, and at Mexican Hat. The association of alkaline to subalkaline volcanic rocks and the presence of low sulphide concentrations together with the geochemistry of these rocks indicates that the Mexican Hat Property is a low sulphidation epithermal gold deposit.

Mining Methods

• Truck & Shovel / Loader

Summary:

The PEA considers open-pit mining of the Mexican Hat gold deposit.

The ramps and haul roads assume the use of haul trucks with an operating width of 6.1m. For two-way access, the goal of the road design is to allow a running width of nearly 3.5 times the width of the trucks. MSHA regulations specify that safety berms be maintained at a height of at least ½ of the diameter of the tires of the haul trucks that will travel on roads. The ½ height of the proposed haul trucks' tires is 1.35m. An extra 10% was added to the berm height design to ensure that all berms have sufficient height.

Safety berms assume a slope of 1.5 horizontal to 1.0 vertical. Considering that ramps in the pit only need one berm, the road width of 26m was determined for two-lane traffic, which allows for 3.49 times the operating width of the haul trucks. Single-lane traffic roads are estimated to require 15.5m, which allows 1.77 times the operating width of the proposed haul trucks.

Roads outside of the pit will require two berms, the widths of which are estimated to be 30.5m, which is 3.46 times the width of the proposed haul trucks.

Road designs are intended to have a maximum gradient of 10%, though some may exceed this for short distances around inside turns. Where switchbacks are utilized, the centerline gradient is reduced to about 8%, keeping the inside gradient approximately 12%. Switchback designs have not added the detail for super elevation through the curves, but it is assumed that this will be done when they are constructed.

Pit Design
Each design utilizes 6.0m benches with a catch bench installed every third bench, or 18m. Mexican Hat pits were designed with five phases. Phase 1 mines the larger main portion of the deposit. Phase 2 continues to expand the main portion of the deposit. Phase 3 extends the main pit to the south, and Phase 4 achieves the full depth and extent of the main pit. Phase 5 mines a satellite pit located to the south of the main deposit.

Geometric Parameters
The design slope parameters use an 18m height between catch benches separated by three benches each of 6.0m height, a 66° bench face angle, and 10m catch benches or berms. This provides for a 45° inner-ramp angle. The waste dump design includes 12m lift heights with 12m catch benches and a 34° slope between benches to achieve an overall slope of 2.5 horizontal to 1.0 vertical.

Pit:
• Bench Height: 18 m;
• Inner-Ramp Angle: 45°;
• Bench Face Angle: 66°;
• Berm Width: 10 m.

3:1 Dumps:
• Bench Height: 12 m;
• Inner-Ramp Angle: 21.8°;
• Bench Face Angle: 34°;
• Berm Width: 12 m.

Dump Design
For the PEA, dump designs were created to contain the waste material mined. A 1.3 swell factor was assumed which provides for both swell when mined and compaction when placed into the facility. The backfill will be placed into the South Pit earlier during the project and will be used to regrade the drainage channel to the south.

Mine Production Schedule
Inferred resources inside the pit designs were used to schedule mine production. Monthly periods were used to create the production schedule, with pre-stripping starting in Mexican Hat at month - 6. The start of processing was assigned to month 1, though no gold production was realized until month 2. The total mining rate would ramp up from 5,000 tonnes per day to about 26,500 tonnes per day over a period of 12 months. In later years, when the stripping becomes more significant, a maximum of 46,000 tonnes per day is used.

The PEA has assumed contract mining to simplify the economic study. The contractor will be responsible for supplying equipment to be used for the project.

Personnel Requirements
The mining contractor will be responsible for providing personnel for mining operations. Most personnel will likely be sourced from Tucson or the surrounding area. Thus, there is no need for any camp to house employees. The contractor will be responsible for transportation of employees to and from the site. It is expected that the contractor will have somewhere around 30 crew members per shift and operate two shifts per day. Assuming four shift rotations to provide seven-day per week operations, this would be about 120 employees provided by the contractor.

Additional employees will be provided by the GMV for Mine General Services, which includes mine supervision and engineering and geology services.

Comminution

Crushers and Mills

Summary:

The Mexican Hat project is designed to crush 3.5 million tonnes of resources per annum at a daily rate of 10,000 t/d for 350 days per year. The 2-stage crushing circuit is designed at a 75% availability, equivalent to a crushing rate of about 1,110 t/h. The crushing circuit is designed to crush run-of-mine material in 2 stages from 100% passing feed size of 1,400 mm down to a product at 80% passing 38 mm. The crushing plant will be supplied, operated, and maintained by the crushing contractor.

The Mexican Hat project is designed to crush 3.5 million tonnes of resources per annum at a daily rate of 10,000 t/d for 350 days per year.

Run-of-mine material from the pit will be hauled to a two-stage crushing plant operated by a contractor with a nominal capacity of 10,000 t/d of mineralized gold material. The crushed material at 80% passing 38 mm will be conveyed to a stockpile with a 24-hour live capacity. Material will be reclaimed from beneath the stockpile by two feeders (4 ft by 15 ft each) and discharged onto an overland conveyor (1,000 m long by 42 inch wide) leading to grasshopper conveyors at the heap leach pad. Grasshoppers and a radial stacking conveyor will be used for stacking at a rate of 833 t/h over 12 hours per day.

The crushing circuit, designed with 75% availability, achieves a rate of about 1,110 t/h. It reduces run-of-mine material in two stages from a feed size of 1,400 mm to a product at 80% passing 38 mm. The plant will be supplied, operated, and maintained by the contractor.

Lime will be added to the crushed material from a silo on the overland conveyor before stacking onto the heap leach pad.

Crushing and Stacking Parameters:
• Crushing and stacking rate: 10,000 tpd;
• Crushing Plant Availability: 75%;
• Crushing throughput rate, nominal: 1,110 t/h;
• Stockpile Live Capacity: 24 h;
• Stacking Schedule: 12 h/d;
• Stacking Rate, nominal: 833 t/h;
• Secondary Screen Decks: No. 2;
• Crushed Material Bulk Density: 1,600 Kg/m³;
• Crusher Work Index: 15.4 kWh/t;
• Heap Leach Stacked Crushed Material Height: 9 m;
• Lime Consumption: 1.5 Kg/t.

Processing

• Smelting
• Carbon re-activation kiln
• Crush-and-stack plant
• Electric furnace
• Heap leach
• Carbon in column (CIC)
• Carbon adsorption-desorption-recovery (ADR)
• Elution
• Filter press
• Solvent Extraction & Electrowinning
• Cyanide (reagent)

Summary:

The stacked crushed material will be irrigated with a cyanide solution to dissolve the contained gold into a pregnant leach solution (PLS). The cyanide solution will percolate through the heap crushed material and be collected in a lined pregnant solution pond. Pregnant solution will be pumped to an adsorption, desorption, recovery (ADR) plant. The ADR plant will be comprised of two trains of 5 carbon in column (CIC) tanks operated in series. The gold in the PLS solution will adsorb onto the carbon. Carbon will be advanced in the CIC circuit counter current to flow of the pregnant solution. Carbon will be transferred daily to a 3 t acid wash and elution circuit for carbon desorption. After carbon is acid washed, it will be rinsed then transferred to the elution column where the strip solution will be pumped to the bottom of the vessel and circulate the required number of bed volumes to recover gold. The eluate will be pumped to a series of two electrowinning cells where gold will be plated onto the steel wool. The electrowinning cell will be cleaned, and the recovered sludge will be filtered and dried prior to mercury retort prior to smelting in the furnace for producing the gold doré bars.

Metal Recovery And Operation
The metal recovery from heap leaching will be in an ADR circuit, regeneration, and refinery plant. The plant will have an operation availability of 92% and will be supplied as a vendor package with all the equipment necessary to recover gold from the PLS.

Pregnant solution will gravity flow through the heap leach and be collected in a lined pregnant solution pond. Pregnant solution will be pumped to two trains of 5 CIC in series (total of 10 CIC tanks) where gold in solution is adsorbed onto the carbon. Loaded carbon is advanced in the CIC circuit counter current to the flow of solution. This ensures that the highest-grade gold in solution is in contact with the highest grade loaded carbon and that the lowest grade solution is in contact with the lowest grade carbon to ensure carbon lading efficiency. Loaded carbon is transferred daily from the CIC to the 3 tonne acid wash and elution circuit.

The loaded carbon acid wash is at atmospheric pressure and acid wash solution is circulated to the bottom of the tank and overflows back into the acid wash solution tank at a rate of 2 bed volumes per hour for 1.5 bed volumes. The carbon is then rinsed with water for 30 minutes. After rinsing, the carbon is transferred to the 3 tonne strip vessel where the carbon is stripped under pressure and about 145°C. Strip solution is pumped via the bottom of the strip vessel and flows to the electrowinning circuit where gold is plated onto steel wool. Typically, eleven bed volumes of strip solution are required at a pumping rate of 2 bed volumes per hour.

Stripped carbon will be transferred to the horizontal rotary kiln for regeneration at 750°C. The carbon should be regenerated in the kiln after every desorption stage otherwise carbon loading efficiency will decrease and gold losses in solutions in the CIC will increase.

The gold rich eluate is pumped to the electrowinning cells where a current is passed so that the gold will plate onto the steel wool cathode. The barren solution from electrowinning will recirculate back to the strip solution tank to be used for mixing strip solution. A 20% bleed of barren solution is recommended to avoid buildup of contaminants.

Gold contained sludge from the electrowinning cells will be washed off the cathode and pumped to a plate and frame filter press. Filter cake will be placed in trays into a drying oven. Dried filter cake will be put through mercury retort prior to mixing with smelting flux and put into the electric induction furnace. The slag layer containing impurities will be removed prior to pouring the gold into molds to produce gold doré bars. The doré bars will be cooled, cleaned, sampled, and shipped to market.

Heap Leach Pad Design
The HLF is in an area of flat to gently sloping topography that will require some grading in the HLF footprint. The HLF surface is generally undisturbed with small shrubs, bushes, and desert cacti. All vegetative cover, organic soils, and growth media will be removed prior to construction. The HLF, which includes the HLF, PLS, and event pond is planned to be located north of the proposed pit. The HLF will be constructed in two phases and has been designed for a nominal production rate of 3,500,000 t of mineralized material per year (10,000 tpd) for a total heap capacity of 32.6 Mt assuming a heap bulk density of 1.5 t/m3. The mineralized material will be mined by a standard open pit mining method, crushed to 80% minus 38 mm, and placed through transport and stacking on the HLF in 10-m-high lifts using a conveyor/stacking system. The HLF is anticipated to have a maximum height of 72 m and an overall slope of 2.5H:1V.

The HLF will be constructed in two phases with approximate areas of 192,201 m2 and 373,311 m2 for Phase 1 and 2, respectively (or a total Phase 1 and 2 area of approximately 565,512 m2).

The HLF will consist of:
• Liner System: The liner systems provide a boundary to contain a PLS and protect the underlying groundwater. The composite geomembrane and geosynthetic clay liner (GCL) system is used where clay soils are not available for constructing liner system that meets Arizona’s prescriptive BADCT requirements;
• Over-liner Drain Fill and Solution Collection System: Over-liner Drain Fill provides liner protection from exposure to the climate, vehicle tracks, and mineralized material placement via haul trucks. The Over-liner Drain Fill also reduces the hydraulic head on the pad liner when constructed in combination with supplemental drainpipes placed at a spacing determined by the leaching solution application rate and the permeability characteristics of the drain rock.

HLF Phase 1 and 2 Configuration
The fully stacked HLF (Phase 1 and 2) will have a total capacity of 32.6 Mt of mineralized material stacked in approximately 9.3 years.

The Phase 1 will have the capacity to store mineralized material for 2 years, which will constitute the first four lifts to a nominal top surface elevation of approximately 1,444 m.

The Phase 2 expansion expands to the west providing capacity to store mineralized material for the LOM, which will constitute seven lifts to a nominal top surface elevation of approximately 1,472 m.

Collection Ponds
The HLF will include two (2) ponds: A PLS collection and a Storm/Upset Events pond. The PLS collection pond will collect and store the minimum operational volume, maximum average seasonal volume, and any temporary draindown. The Event Pond will collect the 100-year, 24-hour storm runoff volume.

Water Supply

Summary:

Groundwater has been identified as the best source for a water supply to the Project operations. Successful water wells that are presently shut-in have apparently been drilled (Hernandez, pers. com, 2014) within the general project area. Water has been encountered in every drillhole completed on the Property by GMV, often at depths less than 50 m. Pumped water from the wells would be transferred by booster pumps to a freshwater tank for distribution to the various site operations. There would be separate fire and potable water tanks. A formal hydrogeologic study will need to be conducted during the next phase of project advancement to characterize local water quality and supply. Five monitoring wells would be installed around the Project site to check of the water quality for processing and environmental authorities.

Commodity Production

Operational metrics

Personnel

Job Title	Name	Profile	Ref. Date
Consultant - Mining & Costs	Tomas L. Dyer		Aug 8, 2025
Consultant - Recovery Methods & Costs	Brian Olson		Aug 8, 2025
Consultant - Recovery Methods & Costs	Francisco Barrios		Aug 8, 2025
President and CEO	Ian Klassen		Sep 30, 2025