Buenos Aires Project

The Buenos Aires Zinc Project comprises two exploration licenses totalling 1,600 hectares in area, located within the Huasicancha and Chuya communities, in the Huancavelica Region at an elevation of between 4,400m and 4,650m, located approximately 25km northeast of the Company’s Puituco Zinc Project, in Central Peru.

Rock chip and channel sampling carried out in 2018-2019 on the Cerro Shacsha Target returned values up to 44% zinc, with twelve samples of the 151 collected returning values over 3% zinc. Two field campaigns of mapping and sampling have been undertaken, with 64 rock samples collected in 2018 and a further 87 rock samples and 37 soil samples in the recently completed program in 2019. The Company has a historical dataset with 20 rock samples and 1,629 soils samples within the property, with the historical soil samples collected at 10m intervals on 19 lines, spaced between 200m and 400m apart, reporting an anomaly extending continuously for approximately 4.7km north south and 1km wide, with zinc values ranging from 1,015ppm to 24,500ppm. The limited check soil samples collected this year returned values ranging from 98ppm to >10,000ppm (over limit results pending), confirming the historical anomaly.

The anomalous zinc values are related to altered limestones of the Jumasha formation along a 15-30m wide high-angle fault zone. The structure is subparallel to the bedding of the limestones and is folded both laterally and vertically. Alteration comprises dolomitization, clay alteration and decalcification of the limestones, with accompanying mineralization comprising sphalerite and zinc silicates. Higher grade samples relate to narrow feeder zones, with brecciation, iron oxides and silicification that are interpreted as representing the distal reflection of a carbonate replacement system. The presence of dykes and anomalous copper and molybdenum values also indicate the possible presence of an intrusive body within the sequence.

To date the structure and related alteration has been mapped and sampled for approximately 4km along strike but historical sampling indicates the anomaly remains open and appears to extend for a further 3-4km within Lara’s licenses. The Company is undertaking additional work both laterally and along strike in the coming weeks to better assess the extent and nature of the mineralization.