San Roque Project Resume

The San Roque property is located in costal desert near the Atlantic Ocean in southwestern Argentina within an area of Patagonia having excellent infrastructure and mining friendly politics. The property is an advanced stage exploration project for a low-sulphidation epithermal polymetallic mineral deposit with gold and zinc as the principal economic commodities accompanied by important values of silver, indium and lead.

The property is owned by Minas San Roque S.A, which is in turn jointly owned by Marifil Mines Ltd. and NovaGold Resources through their wholly owned Argentinean subsidiary companies. Marifil holds 51% equity in Minas San Roque and is currently the project operator.

An independently generated initial NI 43-101 compliant Inferred Mineral Resource of 1.5 million ounces of gold equivalent mineralization has been calculated for the project. This is a conceptual open pit constrained Inferred Mineral Resource of 32,891,400 tonnes at 1.42 grams per tonne gold equivalent (“g/t AuEq”) containing 1,499,900 ounces of AuEq, of which the gold constituent is 486,600 troy ounces. This Inferred Mineral Resource was computed using an oxide plus sulphide tonnages weighted average cut-off grade of 0.58 g/t gold equivalent. It also includes 12,770,600 troy ounces of silver. Notably, the estimated indium content, an element vital to the global digital electronics industry, is 12,586,000 troy ounces. The gold equivalent was calculated using the three year trailing price averages for the metals reported.

This Inferred Mineral Resource includes a strong zinc component of over half a billion pounds which when combined with lead amount to 847,000,000 pounds of base metals (384,000 tonnes). Elevated copper and molybdenum values have also been noted, and they will be modeled in future progressive Mineral Resource estimates.

The Inferred Mineral Resource is an over-all estimate combining four separate zones of mineralization that have been constrained to certain open pit mining dynamics, as well as specific geological and metal elements grade domains.

The resource is all in the Inferred category only because of the lack of metallurgical recovery test data precludes upgrading portions of it to the Indicated category. The amount and spacing of drill holes is sufficient in some zones for determining Indicated Resources pending results of planned extractive metallurgical bench scale tests.

Geologists familiar with the property believe there is sufficient evidence to imply geologic grade and continuity within and possibly between some of the four different mineral zones that, if proven, could upgrade their resource classifications. Marifil reasonably expects that the majority of Inferred Resources could be upgraded to Indicated Mineral Resources with continued drilling, metallurgical recovery testing and an improved specific gravity data base for the various rock formations.

It is clear to geoscientists involved in the project that the limits of the mineral deposit have not yet been established, and that it could be much bigger. Many drill holes ended in well mineralized material. Additionally, numerous mineralized rock outcroppings and soil geochemical metal anomalies, especially for gold, remain to be drilled tested.

The property is secured by 73,915 hectares of mine rights of which 9,449 hectares are held by exclusive mineral exploitation (mining) concessions, with the remainder being surrounding temporary mineral exploration permits. These mining concessions are subject to a federal 3% pit head production royalty and are free of any private production royalties

About US$8.5 million has been invested assessing this mineral deposit discovery, the majority of which was for 16,586 meters of diamond core drilling as 112 holes. A continuation of drilling aimed at expanding the NI43-101 compliant Inferred Mineral Resource estimate and for testing newly discovered outlying gold veins is forthcoming.

The San Roque epithermal polymetallic deposit is geologically analogous to some of the world class mineral deposits located in the Central Mexican Silver Belt where mineralization is genetically related to felsic magnetism. Mineralization is manifested by multiple broad zones of narrow, sheeted and banded quartz-carbonate-sulphide veins and stockworks as well as sulphide disseminations within brecciaed volcanic rocks. Mineral deposition and host rock hydrothermal alteration are stratigraphically and structurally controlled. These types of epithermal mineral mineralization are best described as being Felsic Flow Dome Complex deposits.

Marifil believes the prospects for potential mining development at San Roque are good. The near surface nature and grade of the mineralization are positive factors for economic extraction possibilities, as well as is its location in a geographic zone of well-developed infrastructure and politically welcoming province.

A full San Roque NI 43-101 Report is in progress and is expected to be published in August 2019.

 

San Roque – Rio Negro Province

San Roque Project Highlights

  • Marifil/NovaGold project partnership with Marifil at 51%
  • Advanced exploration stage epithermal polymetallic deposit (Au, Ag, In, Pb, Zn, Cu)
  • NI 43-101 compliant inferred mineral resource of 1.5 million ounces of gold equivalent
  • Open pit constrained Inferred Resource is 35.4 million tonnes at grade of 1.4 gold equivalent
  • Strong base metals component, especially zinc
  • Upgradable in part to indicated resource category with metallurgical testing
  • High Blue Sky potential drilling untested outlying gold mineralized rock outcrops
  • Rio Negro is a mining supportive province
  • 9.4 sq. km of owned mining concessions free of private royalties
  • Excellent infrastructure with on site highway and rail access and nearby labor and power
  • Coastal desert sheep ranch lands with private land access agreement in place
  • No known detrimental health, safety, social or environmental incidents associated with the project

San Roque Property

1) Advanced exploration stage epithermal polymetallic deposit (Au, Ag, In, Pb, Zn, Cu)

2) Full NI 43-101 Technical Report in progress

3) NI 43-101 open pit constrained Inferred Mineral Resource estimate of 1.5 million gold equivalent ounces

  • 32,891,400 tonnesof 1.42 grams per tonne gold equivalent
  • Strong zinc+ indium component

5) US$8.5 million invested in property evaluation

  • 112 drill holes for 16,586 meters
  • 58 trenches for 1,509 meters

6)  Secure land position covering 73,915 hectares

7) No private royalties

8) No known social or environmental impediments to development

1) Minera San Roque S.A (“MSRSA”) owns 100% of the mining claims

  • Three exclusive mineral exploitation concessions for 9.4 sq. km
  • Surrounding temporary mineral exploration permits totaling 64.5 sq. km

2) Shareholders Agreement with NovaGold Resources Inc.

  • NovaGold owns 49% of shares
  • Marifil owns 51% of shares
  • Annual budget nonparticipation dilution provision
  • Marifil S.A. is the current project operator

3) MSRSA is a registrant (# 747) to the federal Mining Investment Law

1) Continue funding advancement of the project

2) Upgrade a portion of the Inferred Mineral Resource to the Indicated category

  • Bench scale extractive metallurgical testing being initiated
  • Continued diamond core drilling on and between defined resource zones

3) Exploration drilling of newly discovered outlying rock and soil gold geochemical anomalies

  • About 1.5 km from the identified Inferred Mineral resource
  • All part of the same epithermal system of mineralization
  • Scout trenching has exposed several epithermal gold veins
    • 1.7 meters width at 9.06 g/t gold plus 82 g/t silver
    • 3.0 meters width at 2.43 g/t gold plus 10 g/t silver
  • Geologic mapping and sampling have defined a 10 hectare bulk tonnage gold drilling target
  • Located in an Atlantic coastal zone of well-developed infrastructure
  • Major trans country high speed highway across the property
  • Trans country rail line crosses the property
    • Railroad siding on property
    • Connects to the major Atlantic deep water port at Bahia Blanca
  • High tension power lines on and near the property
    • 32 kva line crosses the property
    • 500 kva 3-phase line nearby
  • Natural gas pipeline crosses the property
  • 5 airports of various capacities within a 2.5 hour drive
  • Hospitals and health clinics close by
  • Large lakes water sources nearby

2)  Skilled labor sources within commuting distances

3)  Mine development costs expected to be comparatively low

Project Status

1) Advanced exploration stage epithermal polymetallic deposit (Au, Ag, In, Pb, Zn, Cu)

2) Full NI 43-101 Technical Report in progress

3) NI 43-101 open pit constrained Inferred Mineral Resource estimate of 1.5 million gold equivalent ounces

  • 32,891,400 tonnesof 1.42 grams per tonne gold equivalent
  • Strong zinc+ indium component

5) US$8.5 million invested in property evaluation

  • 112 drill holes for 16,586 meters
  • 58 trenches for 1,509 meters

6)  Secure land position covering 73,915 hectares

7) No private royalties

8) No known social or environmental impediments to development

Minas San Roque

1) Minera San Roque S.A (“MSRSA”) owns 100% of the mining claims

  • Three exclusive mineral exploitation concessions for 9.4 sq. km
  • Surrounding temporary mineral exploration permits totaling 64.5 sq. km

2) Shareholders Agreement with NovaGold Resources Inc.

  • NovaGold owns 49% of shares
  • Marifil owns 51% of shares
  • Annual budget nonparticipation dilution provision
  • Marifil S.A. is the current project operator

3) MSRSA is a registrant (# 747) to the federal Mining Investment Law

Marifil's Intent

1) Continue funding advancement of the project

2) Upgrade a portion of the Inferred Mineral Resource to the Indicated category

  • Bench scale extractive metallurgical testing being initiated
  • Continued diamond core drilling on and between defined resource zones

3) Exploration drilling of newly discovered outlying rock and soil gold geochemical anomalies

  • About 1.5 km from the identified Inferred Mineral resource
  • All part of the same epithermal system of mineralization
  • Scout trenching has exposed several epithermal gold veins
    • 1.7 meters width at 9.06 g/t gold plus 82 g/t silver
    • 3.0 meters width at 2.43 g/t gold plus 10 g/t silver
  • Geologic mapping and sampling have defined a 10 hectare bulk tonnage gold drilling target
Infastructure
  • Located in an Atlantic coastal zone of well-developed infrastructure
  • Major trans country high speed highway across the property
  • Trans country rail line crosses the property
    • Railroad siding on property
    • Connects to the major Atlantic deep water port at Bahia Blanca
  • High tension power lines on and near the property
    • 32 kva line crosses the property
    • 500 kva 3-phase line nearby
  • Natural gas pipeline crosses the property
  • 5 airports of various capacities within a 2.5 hour drive
  • Hospitals and health clinics close by
  • Large lakes water sources nearby

2)  Skilled labor sources within commuting distances

3)  Mine development costs expected to be comparatively low

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