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June 1, 2017

Sonoro Receives Chipriona Sale Proceeds from Agnico Eagle

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Chipriona

Chipriona was sold to Agnico Eagle Mines in December 2016 for $4 million cash plus a 1% net smelter returns (NSR) royalty. Agnico may purchase the NSR at any time for an additional $1.5 million.

Chipriona is located in eastern Sonora State, about 300 km east of Hermosillo.  The property is comprised of 4 concessions totaling about 420 ha centered on a broad altered and mineralized zone measuring over 1,000 m by 400 m.  Chipriona adjoins Agnico-Eagle’s La India deposit to the south and is about 15 km northwest of Alamos Gold’s Mulatos Mine. 


Sampling and prospecting has identified at least three additional shear-vein structures to the main Santa Clara vein which returned values of 460 g/t silver and 0.64 g/t gold over 20 meter.

Mineralization consists of pyritic replacement within shear zones and near porphyritic dikes. Surface sampling by Sonoro in 2009 across the main shear zone yielded results of 189 g/t silver and 0.71 g/t gold over 19.9 m and 100 g/t silver and 0.40 g/t gold over 20 m. Sampling at the lowest underground level, 80 m below surface, returned values in one crosscut of 460 g/t slver and 0.64 g/t gold over 20 m.

The primary target at Chipriona is silver dominant polymetallic mineralization with additional values of gold, lead, zinc and copper found in northwest trending shear-vein structures lying within a broader alteration zone measuring 400 m wide by over 1,000 m along strike.  Rock sampling and mapping of the main mineralized shear-vein conducted by Sonoro in 2009 confirmed thicknesses of 7-25 m.  Bonanza style silver-rich mineralization is restricted to massive sulphide veins within the shear, although significant mineralization exists throughout the entire width of the shear zone.

Stephen Kenwood, P. Geo. is a Qualified Person within the context of National Instrument 43-101 and has read and takes responsibility for the information presented above. The press release dated February 20, 2015 gives further details about analytical standards used. The Company’s Qualified Person cautions that mineralization present on adjacent or nearby properties is not necessarily indicative of mineralization on the Chipriona Property.