The Lomada gold deposit, located south-southeast of the community of Perito Moreno. in the western part of the Deseado Massif, is a classic, low-sulfidation epithermal mineral system. Precious metal mineralization at Lomada is hosted in a NNE-striking, steeply ESE-dipping structure (the “Main Breccia”). Production at Lomada commenced in 2013 via heap leaching of surface mined material. A total of 1,914,400 tonnes of mined material, grading 1.97 g/t Au, have been placed on the fully-lined heap leach facility. Approximately 121,100 ounces of gold have been mined and 98,100 ounces recovered by leaching from Lomada since inception. During this period, mining occurred from a portion of the Main Breccia spanning more than 150 meters vertically and 600 meters on strike. During peak production, Lomada achieved approximately 3,900 recovered gold ounces per month and continues today from residual solution processing. The most recent technical report on Lomada, was prepared to JORC standards in 2007 by Chlumsky, Ambrust and Meyer (“CAM LLC”).

The following image of the Lomada mineral system shows the existing mine limits and location of potential new production sources below.