# EDGAR Filing Document

**Accession Number:** 0001548536
**File Stem:** 0001493152-26-001239
**Filing Date:** 2026-1
**Character Count:** 1554378
**Document Hash:** 76bdb3f2fb841f838e07fdb582cc0005
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-26-001239.hdr.sgml**: 20260112

**ACCESSION NUMBER**: 0001493152-26-001239

**CONFORMED SUBMISSION TYPE**: 40FR12B/A

**PUBLIC DOCUMENT COUNT**: 457

**FILED AS OF DATE**: 20260112

**DATE AS OF CHANGE**: 20260112

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Santacruz Silver Mining Ltd.
- **CENTRAL INDEX KEY:** 0001548536
- **STANDARD INDUSTRIAL CLASSIFICATION:** GOLD & SILVER ORES [1040]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A1
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 40FR12B/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-43051
- **FILM NUMBER:** 26524882

**BUSINESS ADDRESS:**
- **STREET 1:** BLVD. DIAZ ORDAZ 140, PISO 5 TORRE II
- **STREET 2:** SANTA MARIA, MONTERREY
- **CITY:** NUEVO LEON
- **STATE:** O5
- **ZIP:** 64250
- **BUSINESS PHONE:** (604) 639-4521

**MAIL ADDRESS:**
- **STREET 1:** BLVD. DIAZ ORDAZ 140, PISO 5 TORRE II
- **STREET 2:** SANTA MARIA, MONTERREY
- **CITY:** NUEVO LEON
- **STATE:** O5
- **ZIP:** 64250

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 40-F/A** 

**(Amendment No. 1)**

[Check one]

☒ **REGISTRATION STATEMENT PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934** **OR** 

☐ **ANNUAL REPORT PURSUANT TO SECTION 13(A) OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934**

---

| | |
|:---|:---|
| <br> **For the fiscal year ended**  | **Commission File Number:** |

---

**Santacruz Silver Mining Ltd.**

(Exact name of Registrant as specified in its charter)

**British Columbia, Canada** 

(Province or other jurisdiction of incorporation or organization)

**1040**

(Primary Standard Industrial Classification Code Number (if applicable))

**Not Applicable**

(I.R.S. Employer Identification Number (if applicable))

**480 – 1140** **West Pender Street**

**Vancouver, British Columbia**

**Canada V6E 4G1**

**(604) 687-1224**

(Address and telephone number of Registrant's principal executive offices)

**Puglisi & Associates**

**850 Library Avenue, Suite 204**

**Newark, Delaware 19711**

**(302) 738-6680**

(Name, address (including zip code) and telephone number (including area code)

of agent for service in the United States)

***Copies of all communications, including communications sent to agent for service, should be sent to:***

**Rick A. Werner, Esq.**

**Alla Digilova, Esq.**

**Haynes and Boone, LLP**

**30 Rockefeller Plaza, 26th Floor**

**New York, New York 10112**

**Tel. (212) 659-7300**

**Fax (212) 884-8234**

Securities registered or to be registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common shares, no par value | SCZM | The Nasdaq Stock Market LLC |

---

Securities registered or to be registered pursuant to Section 12(g) of the Act: None.

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None.

For annual reports, indicate by check mark the information filed with this Form:

☐ Annual information form ☐ Audited annual financial statements

Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report: Not applicable.

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

---

| | | | |
|:---|:---|:---|:---|
| Yes | ☐ | No | ☒ |

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Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

---

| | | | |
|:---|:---|:---|:---|
| Yes | ☐ | No | ☒ |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.

Emerging growth company ☒

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ☐

† The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☒

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☒

**EXPLANATORY NOTE**

Santacruz Silver Mining Ltd. (the "**Company**") is a Canadian public company whose common shares are listed on the TSX Venture Exchange, the Over the Counter QX and the Frankfurt Stock Exchange. The Company is eligible to file its registration statement pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the "**Exchange Act**"), on Form 40-F pursuant to the multi-jurisdictional disclosure system of the Exchange Act (the "**Registration Statement**"). The Company is a "foreign private issuer" as defined by Rule 3b-4 under the Exchange Act. Equity securities of the Company are accordingly exempt from Sections 14(a), 14(b), 14(c), 14(f) and 16 of the Exchange Act pursuant to Rule 3a12-3.

References to the "**Registrant**" or "**Company**" in this Registration Statement mean Santacruz Silver Mining Ltd. and its subsidiaries, unless the context suggests otherwise.

The Registrant is filing this Amendment No. 1 to the Registration Statement to include additional exhibits, each of which is being incorporated by reference in the Registration Statement.

**Restatement Background**

During the year ended December 31, 2024, the Company identified several errors in the previously filed 2023 and 2022 financial statements. The Company has determined that a correction was required and as such, has restated its previously reported consolidated financial statements as at and for the year ended December 31, 2023 and the consolidated statement of financial position as at January 1, 2023. The nature and impact of the corrections are described below:

Joint operation adjustments: The Illapa entity is 100% owned by the Company however its operations are part of a joint association agreement in which the Company has a 45% interest and the remaining 55% interest is held by Corporación Minera de Bolivia ("**COMIBOL**"). The errors identified affect multiple lines in the consolidated financial statements due to incorrectly accounting for the proportion of the Company's interest in certain assets, liabilities, income and expenses of the Joint Operation. The Company previously recorded 100% of the Illapa entity's foreign exchange gain/loss, additions to mineral properties, plant and equipment and certain intercompany expenses which form part of the Joint Operation and should have been recognized at 45%, the Company's proportional interest.

CAPEX Receivable & PPA adjustments: The Illapa Joint Operation's association agreement establishes that the Company will transfer its 45% ownership of all the fixed assets of the joint operation to COMIBOL at the end of the agreement and COMIBOL will compensate the Company for the asset transfer at different points in time throughout the agreement by either making payments to the Company or reducing the amount payable to COMIBOL for its 55% interest in the joint operation. The payment from COMIBOL is compensation for the transfer of the Company's 45% interest in mineral properties, plant & equipment to COMIBOL at the end of the contract, so this amount should not have been recognized as a receivable but rather as part of the residual value of the assets. The adjustments to the CAPEX receivable also triggered an adjustment to the Purchase Price Allocation that was initially recognized in the Sinchi Wayra and Illapa Acquisition in 2022.

Amortization of Purchase Price Allocation (PPA) & Impairment: In the fourth quarter of 2024, the Company identified errors in the depreciation, depletion and amortization expense that were generated from the Sinchi Wayra and Illapa acquisition. The amortization expense was recorded incorrectly due to differences between the local accounting records and the consolidated accounting records.

**PRINCIPAL DOCUMENTS**

Each of the documents that is filed as an exhibit to this Registration Statement, as set forth in the Exhibit Index attached hereto, is incorporated by reference herein.

In accordance with General Instruction B.(1) of Form 40-F, the Registrant hereby incorporates by reference Exhibits 99.1 through 99.87, inclusive, as set forth in the Exhibit Index attached hereto.

In accordance with General Instruction D.(9) of Form 40-F, the Registrant has filed written consents of certain experts named in the foregoing Exhibits as Exhibit 99.84 through Exhibit 99.87, inclusive, as set forth in the Exhibit Index attached hereto and as required by General Instruction D.(9) of Form 40-F.

**FORWARD-LOOKING STATEMENTS**

This Registration Statement and the exhibits attached hereto may contain certain forward-looking information and statements, including statements relating to matters that are not historical facts and statements of the Company's beliefs, intentions and expectations about developments, results and events which will or may occur in the future, including "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995, as amended, and within the meaning of Canadian securities laws, collectively referred to as "forward-looking statements." The forward-looking statements contained in this Registration Statement are made only as of the date hereof. The forward-looking statements contained in the exhibits incorporated by reference in this Registration Statement are made only as of the respective dates set forth in such exhibits. The Company does not have, or undertake, any obligation to update or revise any forward-looking statements whether as a result of new information, subsequent events or otherwise, unless otherwise required by law.

Without limitation, these statements relate to the expectations of management about future events, results of operations and the Company's future performance (both operational and financial) and business prospects. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate," "plan," "contemplate," "continue," "estimate," "expect," "intend," "propose," "might," "may," "will," "shall," "project," "should," "could," "would," "believe," "predict," "forecast," "target," "aim," "pursue," "potential," "objective" and "capable" and the negative of these terms or other similar expressions are generally indicative of forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied on.

In particular, this Registration Statement and the exhibits attached hereto contain forward-looking statements or information pertaining to the following: future financial or operational performance; the expected timing for release of forecasts for 2026, including our estimated production of silver, zinc, lead and copper, and for our estimated cash costs, all-in sustaining cost, capital and exploration, mine operation, general and administrative, care and maintenance expenditures; future anticipated prices for silver, zinc, lead and copper and other metals and assumed foreign exchange rates; the impacts of inflation on the Company and its operations; whether the Company is able to maintain a strong financial condition and have sufficient capital, or have access to capital, to sustain our business and operations; the timing and outcome with respect to the Company's environmental, social and governance activities, and the Company's corporate social responsibility activities and our reporting in respect thereof; the ability of the Company to successfully complete any capital projects, the expected economic or operational results derived from those projects, and the impacts of any such projects on the Company; the potential maximum consideration payable pursuant to the omnibus agreement (the "**Omnibus Agreement**") dated October 3, 2024 between Glencore Finance (Bermuda) Ltd., Glencore International AG (collectively, "**Glencore**") the Company and certain subsidiaries of the Company; the future results of our exploration activities, anticipated mineral reserves and mineral resources; the costs associated with the Company's decommissioning obligations; the Company's plans and expectations for its properties and operations; and expectations with respect to the future anticipated impact of pandemics on our operations.

These forward-looking statements and information reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant operational, business, economic, competitive, political, regulatory, and social uncertainties and contingencies. These assumptions, include: our ability to implement environmental, social and governance activities; tonnage of ore to be mined and processed; ore grades and recoveries; that the Company will receive all required regulatory approvals to operate; that the market price of zinc may be above certain minimum thresholds for the payment of the contingent payments to Glencore pursuant to the Omnibus Agreement; prices for silver, zinc, lead, copper remaining as estimated; currency exchange rates remaining as estimated; capital, decommissioning and reclamation estimates; our mineral reserve and mineral resource estimates and the assumptions upon which they are based; prices for energy inputs, labour, materials, supplies and services (including transportation); no labour-related disruptions at any of our operations; no unplanned delays or interruptions in scheduled production; protection of our interests against claims and legal proceedings; all necessary permits, licenses and regulatory approvals for our operations are received in a timely manner and can be maintained. The foregoing list of assumptions is not exhaustive.

The Company cautions the reader that forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements or information contained in the Annual MD&A and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, some of which are described in the "Risks Factors" section of the Annual MD&A without limitation: fluctuations in silver, zinc, lead and copper prices; fluctuations in prices for energy inputs; fluctuations in currency markets (such as the MXN, BOL and CAD versus the USD); risks related to the technological and operational nature of the Company's business; required regulatory approvals; changes in national and local government, legislation, taxation, controls or regulations and political, legal or economic developments in Canada, the United States, Mexico, Bolivia or other countries where the Company may carry on business, some of which might prevent or cause the suspension or discontinuation of mining activities, including the risk of expropriation related to certain of our operations, particularly in Bolivia; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected geological or structural formations, pressures, cave-ins and flooding); risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom the Company does business; inadequate insurance, or inability to obtain insurance, to cover these risks and hazards; employee relations; relationships with and claims by the local communities and indigenous populations; availability and increasing costs associated with mining inputs and labour; the Company's ability to secure our mine sites or maintain access to our mine sites due to criminal activity, violence, or civil and labour unrest; that changes to the market price of zinc may affect the total consideration payable to Glencore pursuant to the omnibus agreement; the speculative nature of mineral exploration and development, including the risk of obtaining or retaining necessary licenses and permits; challenges to, or difficulty in maintaining, the Company's title to properties and continued ownership thereof; diminishing quantities or grades of mineral reserves as properties are mined; global financial conditions; the Company's ability to complete and successfully integrate acquisitions, and to mitigate other business combination risks; the actual results of current exploration activities, conclusions of economic evaluations, and changes in project parameters to deal with unanticipated economic or other factors; increased competition in the mining industry for properties, equipment, qualified personnel, and their costs; having sufficient cash to pay obligations as they come due; the duration and effects of any epidemics or pandemics on our operations and workforce, and their effects on global economies and society. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described, or intended.

**DIFFERENCES IN UNITED STATES AND CANADIAN REPORTING PRACTICES**

The Company is permitted, under a multijurisdictional disclosure system adopted by the United States, to prepare this Registration Statement in accordance with Canadian disclosure requirements, which are different from those of the United States. The Company prepares its financial statements, which are filed with this Registration Statement in accordance with IFRS<sup>®</sup> Accounting Standards as issued by the International Accounting Standards Board, and the audit is subject to Canadian auditing and auditor independence standards. Consequently, the Company's financial statements may not be comparable to those prepared by U.S. companies.

**MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES**

Unless otherwise indicated, all mineral resource and mineral reserve estimates in this Registration Statement and the documents incorporated by reference herein have been prepared in accordance with the requirements of Canadian provincial securities laws, which differ from the requirements of United States securities laws.

As a result, the Company reports the mineral reserves and resources of the projects it has an interest in according to Canadian standards. Canadian reporting requirements for disclosure of mineral properties are governed by National Instrument 43-101 - *Standards of Disclosure for Mineral Projects* ("NI 43-101"). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ from the requirements of the SEC that are applicable to domestic United States reporting companies under subpart 1300 of Regulation S-K ("SK 1300") under the Exchange Act. As an issuer that prepares and files its reports with the SEC pursuant to the multijurisdictional disclosure system, the Company is not subject to the requirements of SK 1300. Any mineral reserves and mineral resources reported by the Company in accordance with NI 43-101 may not qualify as such under or differ from those prepared in accordance with SK 1300. Accordingly, information and documents included or incorporated by reference in this Registration Statement concerning descriptions of mineralization and estimates of mineral reserves and resources under Canadian standards may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of SK 1300.

**CURRENCY**

Unless otherwise indicated, all dollar amounts in this Registration Statement are in United States dollars.

**TAX MATTERS**

Purchasing, holding, or disposing of securities of the Registrant may have tax consequences under the laws of the United States and Canada that are not described in this Registration Statement.

**DESCRIPTION OF THE SECURITIES**

The authorized capital of the Company consists of an unlimited number of common shares without par value. As at the close of business on January 9, 2026, 91,962,128 common shares of the Company were issued and outstanding as fully paid and non-assessable shares.

The holders of the common shares are entitled to vote at all meetings of holders of common shares, to receive dividends if, as and when declared by the directors and to participate rateably in any distribution of property or assets upon the liquidation, winding-up or other dissolution of the Company. The common shares carry no pre-emptive rights, conversion or exchange rights, or redemption, retraction, repurchase, sinking fund or purchase fund provisions. There are no provisions requiring a holder of common shares to contribute additional capital and no restrictions on the issuance of additional securities by the Company. There are no restrictions on the repurchase or redemption of common shares by the Company except to the extent that any such repurchase or redemption would render the Company insolvent.

The Company has not paid any dividends on its common shares since its incorporation. Any decision to pay dividends on common shares in the future will be made by the board of directors on the basis of the earnings, financial requirements and other conditions existing at such time.

**OFF-BALANCE SHEET ARRANGEMENTS**

The Company does not have any "off-balance sheet arrangements" (as that term is defined in paragraph (11) of General Instruction B to Form 40-F) that have or are reasonably likely to have a current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

**TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS**

The following table summarizes the Registrant's contractual obligations, including payments due for each of the next five years and thereafter as at December 31, 2024:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **<1 <br> year** | **1 – 2 <br> years** | **2 – 5 <br> years** | **>5 <br> years** | **Total** | **Total** |
|  |  | $— | $— | $— | $— | $|
| Trade payables and accrued liabilities |  |  |  |  |  | 49937 |
| Consideration payable – Base Purchase Price <sup>(1), (2)</sup> |  |  |  |  |  | 80000 |
| Consideration payable – CVR & additional payments<sup>(1)</sup> |  |  |  |  |  | 12357 |
| Loans payable |  |  |  |  |  | 19569 |
| Lease payments |  |  |  |  |  | 727 |
|  |  |  |  |  |  | **162590** |

---

<sup>(1)</sup> Consideration payable pursuant to the Omnibus Agreement. 

<sup>(2)</sup> The Base Purchase Price (as defined in the Omnibus Agreement), as disclosed in Note 9(a)(i) to the Audited Consolidated Financial Statements for the years ended December 31, 2024 and 2023 filed as Exhibit 99.1 to this Registration Statement, includes acceleration options that enable the Company to repay less than the contractually committed amounts as presented in the table above. On October 31, 2025 the Company made a final instalment, paying a total of $40,000,000 to exercise the accelerated payment option in full, thereby extinguishing the base purchase price obligation.

**NASDAQ CORPORATE GOVERNANCE**

A foreign private issuer that follows home country practices in lieu of certain provisions of the listing rules of the Nasdaq Stock Market LLC (the "**Nasdaq Stock Market Rules**") must disclose the ways in which its corporate governance practices differ from those followed by domestic companies. As required by Nasdaq Rule 5615(a)(3), the Registrant will disclose on its website, https://santacruzsilver.com/, as of the listing date, each requirement of the Nasdaq Stock Market Rules that it does not follow and describe the home country practice followed in lieu of such requirements.

**UNDERTAKING AND CONSENT TO SERVICE OF PROCESS**

**A.** **Undertaking** 

The Company undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the Commission staff, and to furnish promptly, when requested to do so by the Commission staff, information relating to: the securities registered pursuant to Form 40-F; the securities in relation to which the obligation to file an annual report on Form 40-F arises; or transactions in said securities.

**B.** **Consent to Service of Process** 

Concurrently with the filing of this Registration Statement, the Registrant will file with the Commission an Appointment of Agent for Service of Process and Undertaking on Form F-X in connection with the class of securities to which this Registration Statement relates.

Any changes to the name or address of the Company's agent for service shall be communicated promptly to the U.S. Securities and Exchange Commission by amendment to the Form F-X referencing the file number of the Company.

**SIGNATURES**

Pursuant to the requirements of the Exchange Act, the Company certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereto duly authorized.

Date: January 12, 2026

---

| | |
|:---|:---|
| **SANTACRUZ SILVER MINING INC.** | **SANTACRUZ SILVER MINING INC.** |
| By: | */s/ Andres Bedregal* |
| Name: | Andres Bedregal |
| Title: | Chief Financial Officer  |

---

**EXHIBIT INDEX**

The following documents are being filed with the Commission as Exhibits to this Registration Statement:

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| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1\* | [Audited Consolidated Financial Statements for the years ended December 31, 2024 and 2023](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-1.htm) |
| 99.2\* | [Management's Discussion and Analysis for the years ended December 31, 2024 and 2023](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-2.htm) |
| 99.3\* | [Certification of Annual Filings (CFO) dated May 28, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-3.htm) |
| 99.4\* | [Certification of Annual Filings (CEO) dated May 28, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-4.htm) |
| 99.5\* | [Condensed Consolidated Interim Financial Statements for the three months ended March 31, 2025 and 2024](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-5.htm) |
| 99.6\* | [Management's Discussion and Analysis for the quarter ended March 31, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-6.htm) |
| 99.7\* | [Certificate of Interim Filings (CEO) dated June 12, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-7.htm) |
| 99.8\* | [Certificate of Interim Filings (CFO) dated June 12, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-8.htm) |
| 99.9\* | [Condensed Consolidated Interim Financial Statements for the three and six months ended June 30, 2025 and 2024](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-9.htm) |
| 99.10\* | [Management's Discussion and Analysis for the quarter ended June 30, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-10.htm) |
| 99.11\* | [Certificate of Interim Filings (CEO) dated August 20, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-11.htm) |
| 99.12\* | [Certificate of Interim Filings (CFO) dated August 20, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-12.htm) |
| 99.13\* | [Condensed Consolidated Interim Financial Statements for the three and nine months ended September 30, 2025 and 2024](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-13.htm) |
| 99.14\* | [Management's Discussion and Analysis for the quarter ended September 30, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-14.htm) |
| 99.15\* | [Certificate of Interim Filings (CEO) dated November 27, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-15.htm) |
| 99.16\* | [Certificate of Interim Filings (CFO) dated November 27, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-16.htm) |
| 99.17\* | [Management Certification of Form 13-501F1 dated May 28, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-17.htm) |
| 99.18\* | [Management Certification of Form 13-502F1 dated May 28, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-18.htm) |
| 99.19\* | [Notice of Change of Auditor dated September 3, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-19.htm) |
| 99.20\* | [Letter from Former Auditor dated September 4, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-20.htm) |
| 99.21\* | [Letter from Successor Auditor dated September 5, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-21.htm) |
| 99.22\* | [Notice of Meeting and Record Date dated September 19, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-22.htm) |
| 99.23\* | [Notice of Meeting and Record Date dated October 15, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-23.htm) |
| 99.24\* | [Amended Notice of Meeting and Record Date dated October 16, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-24.htm) |
| 99.25\* | [Second Amended Notice of Meeting and Record Date dated October 17, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-25.htm) |
| 99.26\* | [Management Information Circular dated October 28, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-26.htm) |
| 99.27\* | [Form of Proxy with respect to annual general and special meeting of shareholders held on November 25, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-27.htm) |
| 99.28 | [Technical Report on the Advanced Project Caballo Blanco Mining Operations dated August 21, 2024](ex99-28.htm) |
| 99.29 | [Technical Report on the Advanced Project Bolivar Mining Operations dated August 21, 2024](ex99-29.htm) |
| 99.30 | [Technical Report on the Advanced Project Porco Mining Operations dated August 21, 2024](ex99-30.htm) |
| 99.31 | [Certificate of Qualified Person dated August 21, 2024](ex99-31.htm) |
| 99.32 | [Consent of Qualified Person dated August 21, 2024](ex99-32.htm) |
| 99.33 | [Certificate of Author dated August 21, 2024](ex99-33.htm) |
| 99.34 | [Certificate of Qualified Person dated August 21, 2024](ex99-34.htm) |
| 99.35 | [Consent of Qualified Person dated August 21, 2024](ex99-35.htm) |
| 99.36 | [Consent of Qualified Person dated August 21, 2024](ex99-36.htm) |
| 99.37 | [Certificate of Qualified Person dated August 21, 2024](ex99-37.htm) |
| 99.38 | [Consent of Qualified Person dated August 21, 2024](ex99-38.htm) |
| 99.39 | [Certificate of Qualified Person dated August 21, 2024](ex99-39.htm) |
| 99.40 | [Certificate of Qualified Person dated August 21, 2024](ex99-40.htm) |
| 99.41 | [Consent of Qualified Person dated August 21, 2024](ex99-41.htm) |
| 99.42 | [Consent of Qualified Person dated August 21, 2024](ex99-42.htm) |
| 99.43 | [Consent of Qualified Person dated August 21, 2024](ex99-43.htm) |
| 99.44 | [Consent of Qualified Person dated August 21, 2024](ex99-44.htm) |
| 99.45 | [Certificate of Author dated August 21, 2024](ex99-45.htm) |
| 99.46 | [Consent of Qualified Person dated August 21, 2024](ex99-46.htm) |
| 99.47 | [Certificate of Qualified Person dated August 21, 2024](ex99-47.htm) |
| 99.48 | [Certificate of Author dated August 21, 2024](ex99-48.htm) |
| 99.49\* | [Technical Report on Soracaya Project dated October 4, 2024](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-49.htm) |
| 99.50\* | [Consent of Qualified Person dated October 4, 2024](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-50.htm) |
| 99.51\* | [Certificate of Author dated October 4, 2024](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-51.htm) |
| 99.52\* | [Consent of Qualified Person dated October 4, 2024](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-52.htm) |
| 99.53\* | [Certificate of Author dated October 4, 2024](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-53.htm) |
| 99.54\* | [Articles of Incorporation](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-54.htm) |
| 99.55\* | [Clawback Policy](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-55.htm) |

---

\* Previously filed.

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.56\* | [News release dated January 30, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-56.htm) |
| 99.57\* | [News release dated February 10, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-57.htm) |
| 99.58\* | [News release dated February 27, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-58.htm) |
| 99.59\* | [News release dated March 3, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-59.htm) |
| 99.60\* | [News release dated March 20, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-60.htm) |
| 99.61\* | [News release dated May 1, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-61.htm) |
| 99.62\* | [News release dated May 6, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-62.htm) |
| 99.63\* | [News release dated May 14, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-63.htm) |
| 99.64\* | [News release dated May 28, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-64.htm) |
| 99.65\* | [News release dated June 2, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-65.htm) |
| 99.66\* | [News release dated June 9, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-66.htm) |
| 99.67\* | [News release dated June 12, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-67.htm) |
| 99.68\* | [News release dated June 16, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-68.htm) |
| 99.69\* | [News release dated June 26, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-69.htm) |
| 99.70\* | [News release dated June 26, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-70.htm) |
| 99.71\* | [News release dated July 7, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-71.htm) |
| 99.72\* | [News release dated July 29, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-72.htm) |
| 99.73\* | [News release dated August 11, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-73.htm) |
| 99.74\* | [News release dated August 21, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-74.htm) |
| 99.75\* | [News release dated September 4, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-75.htm) |
| 99.76\* | [News release dated October 7, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-76.htm) |
| 99.77\* | [News release dated October 28, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-77.htm) |
| 99.78\* | [News release dated November 3, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-78.htm) |
| 99.79\* | [News release dated November 17, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-79.htm) |
| 99.80\* | [News release dated November 26, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-80.htm) |
| 99.81\* | [News release dated November 27, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-81.htm) |
| 99.82\* | [News release dated December 8, 2025](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-82.htm) |
| 99.83\* | [News release dated January 5, 2026](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-83.htm) |
| 99.84\* | [Consent of Deloitte LLP](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-84.htm) |
| 99.85\* | [Consent of Qualified Person](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-85.htm) |
| 99.86\* | [Consent of Qualified Person](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-86.htm) |
| 99.87\* | [Consent of Qualified Person](https://www.sec.gov/Archives/edgar/data/1548536/000149315226001226/ex99-87.htm) |

---

\* Previously filed.

## Exhibit 99.28

**EXHIBIT 99.28**![](ex99-28_logo.jpg)

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| | |
|:---|:---|
| ![](logo_001.jpg) | ![](ex99-28_logo1.jpg) |

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Date and Signature Page

This report entitled NI 43-101 Technical Report Caballo Mining Operations, near Potosi Bolivia effective as of January 1, 2024 was prepared and signed by the following authors:

Original document signed and sealed by:

---

| | |
|:---|:---|
| [*Richard Goodwin*] | July 4, 2024 |
| Richard Goodwin, P.Eng. | Date Signed |
| Original document signed and sealed by: |  |
| [*Garth Kirkham*] | July 4, 2024 |
| Garth Kirkham, P.Geo. | Date Signed |
| Original document signed and sealed by: |  |
| [*Tad Crowie*] | July 4, 2024 |
| Tad Crowie, P.Eng. | Date Signed |

---

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE i

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| | |
|:---|:---|
| ![](logo_001.jpg) | ![](ex99-28_logo1.jpg) |

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**NOTICE**

JDS Energy & Mining, Inc. prepared this National Instrument 43-101 Technical Report, in accordance with Form 43-101F1, for Santacruz Silver Mining Ltd. The quality of information, conclusions and estimates contained herein is based on: (i) information available at the time of preparation; (ii) data supplied by outside sources, and (iii) the assumptions, conditions, and qualifications set forth in this report.

Santacruz Silver Mining Ltd. filed this Technical Report with the Canadian Securities Regulatory Authorities pursuant to provincial securities legislation. Except for the purposes legislated under provincial securities law, any other use of this report by any third party is at that party's sole risk.

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE ii

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|:---|:---|
| ![](logo_001.jpg) | ![](ex99-28_logo1.jpg) |

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**Table of Contents**

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| | | | | |
|:---|:---|:---|:---|:---|
| **1** | **Executive Summary** | **Executive Summary** | **Executive Summary** | **1-1** |
|  | 1.1 | Introduction | Introduction | 1-1 |
|  | 1.2 | Ownership | Ownership | 1-1 |
|  | 1.3 | Location | Location | 1-1 |
|  | 1.4 | History | History | 1-2 |
|  | 1.5 | Geology and Mineralization | Geology and Mineralization | 1-3 |
|  | 1.6 | Metallurgical Testing and Mineral Processing | Metallurgical Testing and Mineral Processing | 1-4 |
|  | 1.7 | Mineral Resource Estimate | Mineral Resource Estimate | 1-5 |
|  | 1.8 | Mineral Reserve Estimate | Mineral Reserve Estimate | 1-7 |
|  | 1.9 | Mining | Mining | 1-8 |
|  |  | 1.9.1 | Reserva | 1-8 |
|  |  | 1.9.2 | Colquechaquita Mine | 1-9 |
|  |  | 1.9.3 | Tres Amigos Mine | 1-10 |
|  |  | 1.9.4 | Mine Equipment | 1-12 |
|  | 1.10 | Recovery Methods | Recovery Methods | 1-13 |
|  | 1.11 | Infrastructure | Infrastructure | 1-15 |
|  |  | 1.11.1 | Mina Reserva | 1-15 |
|  |  | 1.11.2 | Mina Tres Amigos | 1-17 |
|  |  | 1.11.3 | Mina Colquechaquita | 1-19 |
|  | 1.12 | Environmental and Permitting | Environmental and Permitting | 1-21 |
|  |  | 1.12.1 | Environmental Considerations | 1-21 |
|  |  | 1.12.2 | Waste and Water Management | 1-21 |
|  |  | 1.12.3 | Permitting | 1-23 |
|  |  | 1.12.4 | Community Relations | 1-24 |
|  |  | 1.12.5 | Mine Closure | 1-27 |
|  | 1.13 | Capital and Operating Cost Estimates | Capital and Operating Cost Estimates | 1-28 |
|  |  | 1.13.1 | Capital Costs | 1-28 |
|  |  | 1.13.2 | Operating Costs | 1-29 |
|  | 1.14 | Economic Analysis | Economic Analysis | 1-30 |
|  |  | 1.14.1 | Result | 1-30 |
|  |  | 1.14.2 | Sensitivities | 1-34 |

---

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE iii

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|:---|:---|
| ![](logo_001.jpg) | ![](ex99-28_logo1.jpg) |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | 1.15 | Observations, Risks, Opportunities and Recommendations | Observations, Risks, Opportunities and Recommendations | 1-35 |
|  |  | 1.15.1 | Observations | 1-35 |
|  |  | 1.15.2 | Risks | 1-36 |
|  |  | 1.15.3 | Opportunities | 1-38 |
|  |  | 1.15.4 | Recommendations | 1-38 |
| **2** | **Introduction** | **Introduction** | **Introduction** | **2-1** |
|  | 2.1 | Terms of Reference | Terms of Reference | 2-1 |
|  | 2.2 | Qualification Persons | Qualification Persons | 2-1 |
|  | 2.3 | Site Visit | Site Visit | 2-2 |
|  | 2.4 | Units, Currency and Rounding | Units, Currency and Rounding | 2-3 |
|  | 2.5 | Sources of Information | Sources of Information | 2-3 |
|  | 2.6 | List Of Previous Relevant Technical Reports | List Of Previous Relevant Technical Reports | 2-3 |
| **3** | **Reliance on Other Experts** | **Reliance on Other Experts** | **Reliance on Other Experts** | **3-1** |
| **4** | **Property Description and Location** | **Property Description and Location** | **Property Description and Location** | **4-1** |
|  | 4.1 | Location | Location | 4-1 |
|  | 4.2 | Property Description and Tenure | Property Description and Tenure | 4-3 |
|  | 4.3 | Environmental, Permitting and Social Relations | Environmental, Permitting and Social Relations | 4-6 |
|  |  | 4.3.1 | Regulatory Framework | 4-7 |
|  |  | 4.3.2 | Health, Safety and Economic Development | 4-8 |
|  |  | 4.3.3 | Environmental Management | 4-9 |
|  |  | 4.3.4 | Community Interaction | 4-10 |
| **5** | **Accessibility, Climate, Local Resources, Infrastructure and Physiography** | **Accessibility, Climate, Local Resources, Infrastructure and Physiography** | **Accessibility, Climate, Local Resources, Infrastructure and Physiography** | **5-1** |
|  | 5.1 | Accessibility | Accessibility | 5-1 |
|  | 5.2 | Climate and Physiography | Climate and Physiography | 5-2 |
|  | 5.3 | Infrastructure | Infrastructure | 5-2 |
| **6** | **History** | **History** | **History** | **6-1** |
|  | 6.1 | Management and Ownership | Management and Ownership | 6-1 |
|  | 6.2 | Historical Resource Estimates | Historical Resource Estimates | 6-2 |
|  | 6.3 | Production 2018 to 2022 | Production 2018 to 2022 | 6-7 |
| **7** | **Geological Setting and Mineralization** | **Geological Setting and Mineralization** | **Geological Setting and Mineralization** | **7-1** |
|  | 7.1 | Introduction | Introduction | 7-1 |

---

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE iv

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|:---|:---|
| ![](logo_001.jpg) | ![](ex99-28_logo1.jpg) |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | 7.2 | Geological Tectonic Framework | Geological Tectonic Framework | 7-1 |
|  | 7.3 | Regional Geology | Regional Geology | 7-4 |
|  |  | 7.3.1 | Eastern Cordillera Introduction | 7-4 |
|  |  | 7.3.2 | Tacsarian Cycle (Upper Cambrian to Ordovician) | 7-10 |
|  |  | 7.3.3 | The Cordilleran Cycle (Late Ordovician to Late Devonian) | 7-11 |
|  |  | 7.3.4 | Subandean (Gondwana) Cycle (Upper Paleozoic) | 7-11 |
|  |  | 7.3.5 | The Mesozoic to Cenozoic Andean Cycle: The Serere, Puca and Corcoro Supersequences | 7-12 |
|  |  | 7.3.6 | The Andean Orogeny | 7-13 |
|  |  | 7.3.7 | Mesozoic to Cenozoic Magmatism | 7-13 |
|  | 7.4 | Local Geology | Local Geology | 7-14 |
|  | 7.5 | Property Geology | Property Geology | 7-15 |
|  | 7.6 | Mineralization | Mineralization | 7-16 |
|  |  | 7.6.1 | Reserva Mine | 7-16 |
|  |  | 7.6.2 | Colquechaquita Mine | 7-17 |
|  |  | 7.6.3 | Three Amigos Mine | 7-18 |
| **8** | **Deposit Types** | **Deposit Types** | **Deposit Types** | **8-1** |
| **9** | **Exploration** | **Exploration** | **Exploration** | **9-1** |
| **10** | **Drilling** | **Drilling** | **Drilling** | **10-1** |
|  | 10.1 | Drilling Summary | Drilling Summary | 10-1 |
|  | 10.2 | Drilling Programs | Drilling Programs | 10-5 |
| **11** | **Sample Preparation, Analyses and Security** | **Sample Preparation, Analyses and Security** | **Sample Preparation, Analyses and Security** | **11-1** |
|  | 11.1 | Drillhole and Sub-Surface Sampling and Security | Drillhole and Sub-Surface Sampling and Security | 11-1 |
|  |  | 11.1.1 | Drill Core Logging, Photography, Sampling and Security | 11-1 |
|  |  | 11.1.2 | Sub-Surface Sampling and Logging | 11-6 |
|  | 11.2 | Sample Preparation and Analysis | Sample Preparation and Analysis | 11-7 |
|  | 11.3 | QA/QC Procedures and Discussion of Results | QA/QC Procedures and Discussion of Results | 11-10 |
|  | 11.4 | QP Statement | QP Statement | 11-19 |
| **12** | **Data Verification** | **Data Verification** | **Data Verification** | **12-1** |
|  | 12.1 | Verifications by the Authors of this Technical Report | Verifications by the Authors of this Technical Report | 12-1 |
|  |  | 12.1.1 | Site Visit & Verification | 12-1 |
|  |  | 12.1.2 | Sample Database Verification | 12-2 |
|  |  | 12.1.3 | Independent Sampling | 12-2 |

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SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE v

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| ![](logo_001.jpg) | ![](ex99-28_logo1.jpg) |

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|:---|:---|:---|:---|:---|
|  |  | 12.1.4 | Geological Model Verification | 12-6 |
|  |  | 12.1.5 | Resource Estimation Verification | 12-6 |
|  |  | 12.1.6 | Conclusions | 12-7 |
|  |  | 12.1.7 | Adequacy Statement | 12-7 |
| **13** | **Mineral Processing and Metallurgical Testing** | **Mineral Processing and Metallurgical Testing** | **Mineral Processing and Metallurgical Testing** | **13-1** |
|  | 13.1 | Company Feed Processing | Company Feed Processing | 13-1 |
|  |  | 13.1.1 | Mill Throughput | 13-1 |
|  |  | 13.1.2 | Feed Grades | 13-2 |
|  |  | 13.1.3 | Lead Production | 13-4 |
|  |  | 13.1.4 | Zinc Production | 13-5 |
|  | 13.2 | Toll Feed Processing | Toll Feed Processing | 13-7 |
|  |  | 13.2.1 | Mill Throughput | 13-7 |
|  |  | 13.2.2 | Feed Grades | 13-8 |
|  |  | 13.2.3 | Lead Production | 13-10 |
|  |  | 13.2.4 | Zinc Production | 13-12 |
|  | 13.3 | Metallurgical Assumptions | Metallurgical Assumptions | 13-13 |
| **14** | **Mineral Resource Estimate** | **Mineral Resource Estimate** | **Mineral Resource Estimate** | **14-1** |
|  | 14.1 | Introduction | Introduction | 14-1 |
|  | 14.2 | Data | Data | 14-1 |
|  |  | 14.2.1 | Geology Model | 14-2 |
|  | 14.3 | Data Analysis | Data Analysis | 14-5 |
|  | 14.4 | Composites | Composites | 14-15 |
|  | 14.5 | Evaluation of Outlier Assay Values | Evaluation of Outlier Assay Values | 14-22 |
|  | 14.6 | Specific Gravity Estimation | Specific Gravity Estimation | 14-27 |
|  | 14.7 | Block Model Definition | Block Model Definition | 14-31 |
|  | 14.8 | Resource Estimation Methodology | Resource Estimation Methodology | 14-34 |
|  | 14.9 | Mineral Resource Classification | Mineral Resource Classification | 14-36 |
|  | 14.10 | ZnEq and NSR Calculation | ZnEq and NSR Calculation | 14-38 |
|  | 14.11 | Mined Out and Sterilized Areas | Mined Out and Sterilized Areas | 14-38 |
|  | 14.12 | Resource Validation | Resource Validation | 14-40 |
|  | 14.13 | Sensitivity of the Block Model to Selection Cut-off Grade | Sensitivity of the Block Model to Selection Cut-off Grade | 14-44 |
|  | 14.14 | Mineral Resource Statement | Mineral Resource Statement | 14-45 |
|  | 14.15 | Discussion with Respect to Potential Material Risks to the Resources | Discussion with Respect to Potential Material Risks to the Resources | 14-45 |

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SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE vi

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|:---|:---|
| ![](logo_001.jpg) | ![](ex99-28_logo1.jpg) |

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| | | | | |
|:---|:---|:---|:---|:---|
| **15** | **Mineral Reserve Estimate** | **Mineral Reserve Estimate** | **Mineral Reserve Estimate** | **15-1** |
|  | 15.1 | Summary | Summary | 15-1 |
|  | 15.2 | Definitions | Definitions | 15-1 |
|  | 15.3 | NSR and COG Determinations | NSR and COG Determinations | 15-2 |
|  |  | 15.3.1 | Operating Costs | 15-2 |
|  |  | 15.3.2 | Metal Prices | 15-3 |
|  |  | 15.3.3 | Metallurgical Recoveries | 15-3 |
|  |  | 15.3.4 | Smelter Terms | 15-3 |
|  | 15.4 | Net Smelter Return and Cut-off Criteria | Net Smelter Return and Cut-off Criteria | 15-3 |
|  | 15.5 | Estimation Methodology | Estimation Methodology | 15-3 |
|  | 15.6 | Mineral Reserve Estimate | Mineral Reserve Estimate | 15-4 |
| **16** | **Mining Methods** | **Mining Methods** | **Mining Methods** | **16-1** |
|  | 16.1 | Overview | Overview | 16-1 |
|  | 16.2 | Geotech Considerations | Geotech Considerations | 16-2 |
|  | 16.3 | Mine Layout and Mining Method | Mine Layout and Mining Method | 16-3 |
|  |  | 16.3.1 | Reserva Mine | 16-3 |
|  |  | 16.3.2 | Colquechaquita Mine | 16-4 |
|  |  | 16.3.3 | Tres Amigos Mine | 16-5 |
|  | 16.4 | Development | Development | 16-7 |
|  | 16.5 | Mine Services | Mine Services | 16-7 |
|  |  | 16.5.1 | Haulage | 16-7 |
|  |  | 16.5.2 | Electrical | 16-10 |
|  |  | 16.5.3 | Ventilation | 16-12 |
|  |  | 16.5.4 | Mine Dewatering | 16-14 |
|  | 16.6 | Mine Equipment | Mine Equipment | 16-16 |
|  | 16.7 | Mine Personnel | Mine Personnel | 16-17 |
| **17** | **Process Description / Recovery Methods** | **Process Description / Recovery Methods** | **Process Description / Recovery Methods** | **17-1** |
|  | 17.1 | Plant Flowsheet | Plant Flowsheet | 17-1 |
|  | 17.2 | Mill Circuits | Mill Circuits | 17-4 |
|  |  | 17.2.1 | Crushing | 17-4 |
|  |  | 17.2.2 | Grinding | 17-5 |

---

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE vii

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|:---|:---|:---|:---|:---|
|  |  | 17.2.3 | Flotation | 17-5 |
|  |  | 17.2.4 | Concentrate Dewatering | 17-6 |
|  |  | 17.2.5 | Tailings | 17-6 |
| **18** | **Project Infrastructure and Services** | **Project Infrastructure and Services** | **Project Infrastructure and Services** | **18-1** |
|  | 18.1 | Mina Reserva | Mina Reserva | 18-1 |
|  | 18.2 | Mina Tres Amigos | Mina Tres Amigos | 18-3 |
|  | 18.3 | Mina Colquechaquita | Mina Colquechaquita | 18-5 |
| **19** | **Market Studies and Contracts** | **Market Studies and Contracts** | **Market Studies and Contracts** | **19-1** |
|  | 19.1 | Contracts | Contracts | 19-1 |
|  | 19.2 | Market Studies | Market Studies | 19-1 |
|  | 19.3 | Smelting | Smelting | 19-1 |
|  | 19.4 | Metal Prices | Metal Prices | 19-2 |
| **20** | **Environmental Studies, Permitting and Social or Community Impacts** | **Environmental Studies, Permitting and Social or Community Impacts** | **Environmental Studies, Permitting and Social or Community Impacts** | **20-1** |
|  | 20.1 | Environmental Considerations | Environmental Considerations | 20-1 |
|  |  | 20.1.1 | Climate Change | 20-2 |
|  | 20.2 | Waste and Water Management | Waste and Water Management | 20-3 |
|  | 20.2.1 | Solid Waste | Solid Waste | 20-8 |
|  | 20.2.2 | Water Management | Water Management | 20-11 |
|  | 20.3 | Permitting | Permitting | 20-12 |
|  | 20.4 | Community Relations | Community Relations | 20-14 |
|  |  | 20.4.1 | Education | 20-19 |
|  |  | 20.4.2 | Community and Economic Development | 20-20 |
|  |  | 20.4.3 | Environmental Initiatives | 20-20 |
|  |  | 20.4.4 | Local Needs | 20-20 |
|  |  | 20.4.5 | Health and Sports | 20-21 |
|  |  | 20.5 | Mine Closure | 20-21 |
| **21** | **Capital and Operating Costs** | **Capital and Operating Costs** | **Capital and Operating Costs** | **21-1** |
|  | 21.1 | Capital Costs | Capital Costs | 21-1 |
|  | 21.2 | Operating Costs | Operating Costs | 21-2 |
| **22** | **Economic Analysis** | **Economic Analysis** | **Economic Analysis** | **22-1** |
|  | 22.1 | Result | Result | 22-1 |
|  | 22.2 | Sensitivities | Sensitivities | 22-5 |
| **23** | **Adjacent Properties** | **Adjacent Properties** | **Adjacent Properties** | **23-1** |
| **24** | **Other Relevant Data and Information** | **Other Relevant Data and Information** | **Other Relevant Data and Information** | **24-1** |
| **25** | **Interpretations and Conclusions** | **Interpretations and Conclusions** | **Interpretations and Conclusions** | **25-1** |
|  | 25.1 | Observations | Observations | 25-1 |
|  | 25.2 | Risks | Risks | 25-4 |
|  | 25.3 | Opportunities | Opportunities | 25-6 |
| **26** | **Recommendations** | **Recommendations** | **Recommendations** | **26-1** |
| **27** | **References** | **References** | **References** | **27-1** |
| **28** | **Units of Measure, Abbreviations, Acronyms, and Glossary of Spanish Terms** | **Units of Measure, Abbreviations, Acronyms, and Glossary of Spanish Terms** | **Units of Measure, Abbreviations, Acronyms, and Glossary of Spanish Terms** | **28-1** |

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List of Figures

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| Figure 1-1: Project History | 1-3 |
| Figure 1-2: Long Section Reserva Mine | 1-8 |
| Figure 1-3: Avoca Mining at Reserva Mine | 1-9 |
| Figure 1-4: Long Section Colquechaquita Mine | 1-10 |
| Figure 1-5: Isometric of the Tres Amigos Mine | 1-11 |
| Figure 1-6: Shrinkage Mining as Practiced at Tres Amigos | 1-11 |
| Figure 1-7: Don Diego Mill Flowsheet | 1-14 |
| Figure 1-8: Infrastructure for Mina Reserva | 1-16 |
| Figure 1-9: Infrastructure for Mina Tres Amigos | 1-18 |
| Figure 1-10: Infrastructure for Mina Colquechaquita | 1-20 |
| Figure 1-11: Caballo Blanco Mine Water Balance | 1-23 |
| Figure 1-12: Caballo Blanco Surrounding Communities | 1-26 |
| Figure 1-13: Caballo Blanco Community Investment | 1-27 |
| Figure 1-14: Univariate Sensitivities | 1-35 |
| Figure 4-1: Location Map | 4-2 |
| Figure 4-2: Project Location Map | 4-3 |
| Figure 4-3: Colquechaquita, Reserva and Tres Amigos Mineral Tenure | 4-5 |
| Figure 5-1: Location of Caballo Blanco Mines and Don Diego Plant | 5-1 |
| Figure 5-2: Caballo Blanco Power Generation | 5-2 |
| Figure 6-1: Project History | 6-2 |
| Figure 6-2: Veins and Structures for Caballo Blanco | 6-4 |
| Figure 7-1: Regional Geology Setting | 7-1 |
| Figure 7-2: Regional Geology Setting with Deposit Types | 7-2 |
| Figure 7-3: Plate Tectonic Reconstructions of the Neoproterozoic Subcontinent and the Late Precambrian Supercontinent after the Opening of the Southern Iapetus Ocean | 7-5 |
| Figure 7-4: Plate Tectonic Reconstructions of the Neoproterozoic and Late Precambrian Subcontinents | 7-6 |
| Figure 7-5: Paleogeography of SW Gondwana Margin in the Early Ordovician | 7-7 |
| Figure 7-6: The Famatinian – Taconic Orogen in the Middle Ordovician | 7-8 |
| Figure 7-7: The Ordovician of the Central Andes | 7-9 |
| Figure 8-1: Conceptual Model of Bolivian Polymetallic Vein Type Deposits (modif. From Heuschmidt, 2000) | 8-3 |

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| Figure 10-1: Plan View of Drillhole Locations at Caballo Blanco | 10-3 |
| Figure 10-2: Section View A-A' (azimuth 15°) Showing the Colquechaquita Deposit | 10-3 |
| Figure 10-3: Section View B-B' (azimuth 350°) Showing the Reserva Deposit | 10-4 |
| Figure 10-4: Section View C-C' (azimuth 335°) Showing the Tres Amigos Deposit | 10-4 |
| Figure 11-1: Example of Core Marked for Splitting | 11-2 |
| Figure 11-2: Core Splitting Facilities | 11-3 |
| Figure 11-3: Samples Prepared for Analysis Transport | 11-4 |
| Figure 11-4: Sample Submission Form | 11-5 |
| Figure 11-5: Drill Core Storage Facilities | 11-6 |
| Figure 11-6: Assay Methods Employed at the Caballo Blanco Mine | 11-8 |
| Figure 11-7: Example of Don Diego Laboratory Assay Certificate | 11-9 |
| Figure 11-8: Plot of Ag g/t Values for Field Blanks | 11-12 |
| Figure 11-9: Plot of Pb% Vaues for Field Blanks | 11-13 |
| Figure 11-10: Plot of Zn% Vaues for Field Blanks | 11-14 |
| Figure 11-11: Plot of Coarse Reject Duplicates – Ag g/t | 11-15 |
| Figure 11-12: Plot of Coarse Reject Duplicates – Pb% | 11-16 |
| Figure 11-13: Plot of Coarse Reject Duplicates – Zn% | 11-17 |
| Figure 11-14: Plot of Pulp Duplicates – Ag g/t | 11-18 |
| Figure 11-15: Plot of Pulp Duplicates – Pb% | 11-18 |
| Figure 11-16: Plot of Pulp Duplicates – Zn% | 11-19 |
| Figure 12-1: Results of Independent Verification Sampling for Ag g/t | 12-4 |
| Figure 12-2: Results of Independent Verification Sampling for Pb% | 12-5 |
| Figure 12-3: Results of Independent Verification Sampling for Zn% | 12-6 |
| Figure 13-1: Don Diego Mill Company Feed Throughput 2020/2021 | 13-1 |
| Figure 13-2: Zinc Feed Grade 2020/2021 | 13-2 |
| Figure 13-3: Lead Feed Grade 2020/2021 | 13-3 |
| Figure 13-4: Silver Feed Grade 2020/2021 | 13-3 |
| Figure 13-5: Mill Lead Concentrate Recovery vs. Lead Feed Grade | 13-4 |
| Figure 13-6: Silver Recovery to the Lead Concentrate vs. Mill Feed Silver Grade | 13-5 |
| Figure 13-7: Zinc Recovery to the Zinc Concentrate vs. Mill Feed Zinc Grade | 13-6 |
| Figure 13-8: Silver Recovery to the Zinc Concentrate vs. Mill Feed Silver Grade | 13-7 |
| Figure 13-9: Don Diego Mill Toll Feed Throughput 2020/2021 | 13-8 |
| Figure 13-10: Toll Feed Zinc Grade 2020/2021 | 13-9 |
| Figure 13-11: Toll Feed Lead Grade 2020/2021 | 13-9 |

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| Figure 13-12: Toll Feed Silver Grade 2020/2021 | 13-10 |
| Figure 13-13: Mill Lead Concentrate Recovery vs. Lead Feed Grade | 13-11 |
| Figure 13-14: Silver Recovery to the Lead Concentrate vs. Mill Feed Silver Grade | 13-12 |
| Figure 13-15: Zinc Recovery to the Zinc Concentrate vs. Mill Feed Zinc Grade | 13-12 |
| Figure 13-16: Silver Recovery to the Zinc Concentrate vs. Mill Feed Silver Grade | 13-13 |
| Figure 14-1: Plan View of Caballo Blanco Drillholes and Channel Samples | 14-2 |
| Figure 14-2: Plan View of Caballo Blanco Mineralized Zones and Drillholes | 14-3 |
| Figure 14-3: Long Section View of Colquechaquita Mineralized Zones and Drillholes Looking West | 14-3 |
| Figure 14-4: Long Section View of Reserva Mineralized Zones and Drillholes Looking West | 14-4 |
| Figure 14-5: Long Section View of Tres Amigos Mineralized Zones and Drillholes Looking West | 14-4 |
| Figure 14-6: Assay Interval Lengths for Colqechequita | 14-11 |
| Figure 14-7: Assay Interval Lengths for Reserva | 14-12 |
| Figure 14-8: Assay Interval Lengths for Tres Amigos | 14-12 |
| Figure 14-9: Assay Interval Lengths vs Silver Grades for Colquechaquita | 14-13 |
| Figure 14-10: Assay Interval Lengths vs Silver Grades for Reserva | 14-14 |
| Figure 14-11: Assay Interval Lengths vs Silver Grades for Tres Amigos | 14-14 |
| Figure 14-12: Box Plot of Zn Composites for the Caballo Blanco Deposit - Reserva | 14-17 |
| Figure 14-13: Box Plot of Zn Composites for the Caballo Blanco Deposit - Colquechaquita | 14-18 |
| Figure 14-14: Box Plot of Zn Composites for the Caballo Blanco Deposit – Tres Amigos | 14-18 |
| Figure 14-15: Box Plot of Pb Composites for the Caballo Blanco Deposit - Reserva | 14-19 |
| Figure 14-16: Box Plot of Pb Composites for the Caballo Blanco Deposit - Colquechaquita | 14-20 |
| Figure 14-17: Box Plot of Pb Composites for the Caballo Blanco Deposit – Tres Amigos | 14-20 |
| Figure 14-18: Box Plot of Ag Composites for the Caballo Blanco Deposit - Reserva | 14-21 |
| Figure 14-19: Box Plot of Ag Composites for the Caballo Blanco Deposit - Colquechaquita | 14-21 |
| Figure 14-20: Box Plot of Zn Composites for the Caballo Blanco Deposit – Tres Amigos | 14-22 |
| Figure 14-21: Scatterplot of Zinc vs Density | 14-27 |
| Figure 14-22: Scatterplot of Lead vs Density | 14-28 |
| Figure 14-23: Scatterplot of Iron vs Density | 14-28 |
| Figure 14-24: Scatterplot of Silver vs Density | 14-29 |
| Figure 14-25: Scatterplot of Measured Density vs Calculated Density with Iron | 14-30 |
| Figure 14-26: Scatterplot of Measured Density vs Calculated Density without Iron | 14-31 |
| Figure 14-27: Dimensions, Origin and Orientation for Colquechaquita | 14-32 |
| Figure 14-28: Dimensions, Origin and Orientation for Reserva | 14-33 |
| Figure 14-29: Dimensions, Origin and Orientation for Tres Amigos | 14-34 |

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| Figure 14-30: Long Section View of the Reserva Deposit Showing Resource Block by Classification | 14-37 |
| Figure 14-31: Long Section View of the Colquechequita Deposit Showing Resource Block by Classification | 14-37 |
| Figure 14-32: Long Section View of the Tres Amigos Deposit Showing Resource Block by Classification | 14-38 |
| Figure 14-33: Plan View of Development, Pillars, Mined Out and Sterilized Areas for the Reserva Mine | 14-39 |
| Figure 14-34: Plan View of Development, Pillars, Mined Out and Sterilized Areas for the Colquechaquita Mine | 14-39 |
| Figure 14-35: Plan View of Development, Pillars, Mined Out and Sterilized Areas for the Tres Amigos Mine | 14-40 |
| Figure 14-36: Long Section View of Reserva Deposit Block Model with ZnEq Cut-off Grades | 14-41 |
| Figure 14-37: Long Section View of Reserva Deposit Block Model with ZnEq Cut-off Grades with Mined Out and Sterilized Areas (blue) | 14-42 |
| Figure 14-38: Long Section View of Colquechaquita Deposit Block Model with ZnEq Cut-off Grades | 14-42 |
| Figure 14-39: Long Section View of Colquechaquita Deposit Block Model with ZnEq Cut-off Grades with Mined Out and Sterilized Areas (blue) | 14-43 |
| Figure 14-40: Long Section View of Tres Amigos Deposit (Catalina Veins) Block Model with ZnEq Cut-off Grades | 14-43 |
| Figure 14-41: Long Section View of Tres Amigos Deposit (Catalina Veins) Block Model with ZnEq Cut-off Grades with Mined Out and Sterilized Areas (blue) | 14-43 |
| Figure 16-1: Mine Locations on the Mineralized Trend | 16-1 |
| Figure 16-2: Caballo Blanco Reserve and Mineable Targets | 16-2 |
| Figure 16-3: Long Section Reserva Mine | 16-3 |
| Figure 16-4: Avoca Mining at Reserva Mine | 16-4 |
| Figure 16-5: Long Section Colquechaquita Mine | 16-5 |
| Figure 16-6: Shrinkage Mining as Practiced at Tres Amigos | 16-6 |
| Figure 16-7: Isometric of the Tres Amigos Mine | 16-6 |
| Figure 16-8: Evolution of the Rock Mass Support System | 16-7 |
| Figure 16-9: Ore Haulage System Diagram – Reserva Mine | 16-8 |
| Figure 16-10: Ore Haulage System Diagram – Colquechaquita Mine | 16-9 |
| Figure 16-11: Extraction System Diagram – Tres Amigos Mine | 16-10 |
| Figure 16-12: Single Line Diagram of Electrical Distribution System | 16-11 |
| Figure 16-13: Ventilation Scheme – Colquechaquita Mine | 16-12 |
| Figure 16-14: Ventilation Scheme – Reserva Mine | 16-13 |
| Figure 16-15: Ventilation Scheme – Tres Amigos Mine | 16-13 |
| Figure 16-16: Dewatering System – Colquechaquita Mine | 16-14 |

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| Figure 16-17: Dewatering System Scheme – Reserva Mine | 16-15 |
| Figure 16-18: Dewatering System Scheme – Tres Amigos Mine | 16-15 |
| Figure 17-1: Don Diego Mill Flowsheet | 17-2 |
| Figure 17-2: Don Diego Grinding Circuit | 17-3 |
| Figure 17-3: Don Diego Zinc Flotation | 17-4 |
| Figure 18-1: Infrastructure for Mina Reserva | 18-2 |
| Figure 18-2: Infrastructure for Mina Tres Amigos | 18-4 |
| Figure 18-3: Infrastructure for Mina Colquechaquita | 18-6 |
| Figure 19-1: Historical Silver Price | 19-2 |
| Figure 19-2: Historical Lead Price | 19-2 |
| Figure 19-3: Historical Zinc Price | 19-3 |
| Figure 20-1: Santacruz Bolivia Operations Energy Consumption | 20-3 |
| Figure 20-2: Waste Classification by Process Source | 20-4 |
| Figure 20-3: Water Treatment Process | 20-6 |
| Figure 20-4: Santacruz Bolivia Water Balance | 20-8 |
| Figure 20-5: Volume profile of the Chilimocko Dam by Stage Height | 20-9 |
| Figure 20-6: Aerial Photography of the Chilimocko TSF | 20-10 |
| Figure 20-7: Caballo Blanco Mine Water Balance | 20-12 |
| Figure 20-8: Total Investment in Communities | 20-16 |
| Figure 20-9: Caballo Blanco Surrounding Communities | 20-19 |
| Figure 20-10: Caballo Blanco Community Investment | 20-21 |
| Figure 22-1: Univariate Sensitivities | 22-5 |

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List of Tables

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| Table 1-1: Recovery and Concentrate Grade Estimates | 1-5 |
| Table 1-2: Base-Case Total Mineral Resources at 10.0% ZnEq Cut-off | 1-6 |
| Table 1-3: Mineral Reserve Estimate for Caballo Blanco (January 1, 2023) | 1-7 |
| Table 1-4: Key Production Data from 2022 | 1-12 |
| Table 1-5: Environmental Licenses Held by Santacruz | 1-24 |
| Table 1-6: Actual Combined Capital Requirement for All Bolivian Operations, 2017 to 2022 ($M) | 1-28 |
| Table 1-7: Projected Capital Requirement for all Caballo Operations, 2021 to 2027 ($M) | 1-28 |
| Table 1-8: Unit Operating Costs ($/t) | 1-29 |
| Table 1-9: Production Forecast – Mining and Processing | 1-30 |
| Table 1-10: Production Forecast - Concentrate | 1-31 |
| Table 1-11: Revenue and Cost Projection ($M) | 1-32 |
| Table 1-12: Cashflow Projection ($M) | 1-33 |
| Table 2-1: QP Responsibilities | 2-2 |
| Table 2-2: QP Site Visits | 2-2 |
| Table 4-1: Mineral Tenures for Reserva and Tres Amigos Mines | 4-4 |
| Table 4-2: Mineral Tenures for Colquechaquita Mine | 4-6 |
| Table 6-1: Historic Mineral Resource Estimate | 6-3 |
| Table 6-2: Historic Mineral Resource Estimate for 2018 and 2019 | 6-3 |
| Table 6-3: Composite Statistics and Cut-off Grade Thresholds | 6-5 |
| Table 6-4: Estimation Parameters | 6-6 |
| Table 6-5: Production from the Caballo Blanco Mines, 2018 to 2022 | 6-7 |
| Table 10-1: Colquechaquita Drilling Programs in 2010 and 2021 | 10-1 |
| Table 10-2: Reserva Drilling Programs from 2010 through 2021 | 10-2 |
| Table 10-3: Tres Amigos Drilling Programs from 2010 through 2023 | 10-2 |
| Table 10-4: Caballo Blanco Drilling Details from 2010 through January 2023 | 10-5 |
| Table 10-5: Reserva Drilling Details from 2000 through January 2023 | 10-5 |
| Table 10-6: Tres Amigos Drilling Details from 2000 through January 2023 | 10-6 |
| Table 11-1: Underground Sample Mineralization Codes | 11-7 |
| Table 11-2: QA/QC Sample Insertion Rates | 11-10 |
| Table 11-3: Quantity of Control Samples by Type | 11-11 |
| Table 12-1: Caballo Blanco Independent Verification Sampling | 12-3 |

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| Table 13-1: Recovery and Concentrate Grade Estimates | 13-14 |
| Table 14-1: Statistics for the Colquechaquita Deposit Database | 14-1 |
| Table 14-2: Statistics for the Reserva Deposit Database | 14-1 |
| Table 14-3: Statistics for the Tres Amigos Deposit Database | 14-2 |
| Table 14-4: Summary Statistics for the Caballo Blanco Project Database | 14-2 |
| Table 14-5: Vein Codes and Descriptions for the Caballo Blanco Project by Mine | 14-5 |
| Table 14-6: Statistics Silver, Lead and Zinc for the Reserva Deposit by Vein | 14-6 |
| Table 14-7: Statistics Silver, Lead and Zinc for the Colquechaquita Deposit by Vein | 14-7 |
| Table 14-8: Statistics Silver, Lead and Zinc for the Tres Amigos Deposit by Vein | 14-8 |
| Table 14-9: Statistics Iron for the Caballo Blanco Deposit by Mine | 14-9 |
| Table 14-10: Statistics Assay Interval Lengths for the Caballo Blanco Deposit by Mine | 14-10 |
| Table 14-11: Zn Composite Statistics for the Caballo Blanco by Deposit and Vein | 14-15 |
| Table 14-12: Pb Composite Statistics for the Caballo Blanco by Deposit and Vein | 14-15 |
| Table 14-13: Ag Composite Statistics for the Caballo Blanco by Deposit and Vein | 14-16 |
| Table 14-14: Outlier Cutting Analysis for the Caballo Blanco Deposit | 14-23 |
| Table 14-15: Outlier Cutting Analysis for Zinc | 14-24 |
| Table 14-16: Outlier Cutting Analysis for Lead | 14-25 |
| Table 14-17: Outlier Cutting Analysis for Silver | 14-26 |
| Table 14-18: Search Ellipse Parameters for the Caballo Blanco Deposit | 14-35 |
| Table 14-19: Sensitivity Analyses at Various ZnEq Cut-off Grades for Measured, Indicated and Inferred Resources | 14-44 |
| Table 14-20: Base-Case Total Mineral Resources at 10.0% ZnEq Cut-off | 14-45 |
| Table 14-21: Base-Case Total Mineral Resources at 10.0% ZnEq Cut-off Split by Area | 14-45 |
| Table 15-1: Actual Operating Costs for 2022 by Category | 15-2 |
| Table 15-2: Stope Optimization Parameters by Mine and Stoping Method | 15-4 |
| Table 15-3: Mineral Reserve Estimate for Caballo Blanco (January 1, 2023) | 15-4 |
| Table 16-1: Electric Requirements | 16-10 |
| Table 16-2: Mine Equipment Inventory | 16-16 |
| Table 16-3: Mine Personnel (2022) | 16-17 |
| Table 19-1: Metal Price and Exchange Rate | 19-3 |
| Table 20-1: Total Waste Quantification and Treatment/Disposal | 20-5 |
| Table 20-2: Santacruz Bolivia Water Volumes | 20-7 |
| Table 20-3: Stored Tonnes of Waste Rock by Category (2022) | 20-11 |
| Table 20-4: Environmental Licenses Held by Santacruz | 20-13 |

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| Table 20-5: Communities and Population Proximal to Santacruz Operations | 20-14 |
| Table 20-6: Concerns Put Forth by Proximal Communities in 2022 | 20-15 |
| Table 20-7: Caballo Blanco Local Populations | 20-18 |
| Table 21-1: Actual Combined Capital Requirement for All Bolivian Operations, 2017 to 2022 ($M) | 21-1 |
| Table 21-2: Projected Capital Requirement for all Caballo Operations, 2023 to 2028 ($M) | 21-1 |
| Table 21-3: Unit Operating Costs ($/t) | 21-2 |
| Table 22-1: Production Forecast – Mining and Processing | 22-1 |
| Table 22-2: Production Forecast - Concentrate | 22-2 |
| Table 22-3: Revenue and Cost Projection ($M) | 22-3 |
| Table 22-4: Cashflow Projection ($M) | 22-4 |
| Table 25-1: Base-Case Total Mineral Resources at 10.0% ZnEq Cut-off | 25-3 |

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1 Executive Summary

1.1 Introduction

JDS Energy & Mining Inc. (JDS) was commissioned by Santacruz Silver Mining Ltd. (Santacruz) to carry out a Technical Report for the Caballo Blanco operation (Caballo Blanco or CB) located in the state of Potosi, Bolivia.

Caballo Blanco has three operating mines: the Reserva, Colquechaquita, and Tres Amigos. All mined ore feeds the Don Diego processing plant.

This report is the first declaration of resources and reserves, for the Bolivar base metals underground mining operation since its acquisition by Santacruz. The mine is fully operational at the time of this report's preparation. The effective date of both the resource and the reserve is January 1, 2023, which is approximately 18 months before the report date. Production data for the calendar year 2023 has been included in Section 24 Other Relevant Data and information to show the depletion and typical replenishment of resources and reserves over a calendar year.

1.2 Ownership

On October 11, 2021, Santacruz entered into the Definitive Agreement with Glencore whereby Santacruz agreed to acquire a portfolio of Bolivian silver assets from Glencore, including the following: (a) a 45% interest in the Bolivar Mine and the Porco Mine, held through an unincorporated joint venture between Glencore's wholly-owned subsidiary Contrato de Asociación Sociedad Minera Illapa S.A. (Illapa) and COMIBOL, a Bolivian state-owned entity; (b) a 100% interest in the Sinchi Wayra S.A. (Sinchi Wayra) business, which includes the producing Caballo Blanco mining complex; (c) the Soracaya exploration project; and (d) the San Lucas ore sourcing and trading business.

On March 21, 2022, Santacruz completed this purchase, including Glencore's interest in the Caballo Blanco mining complex.

Santacruz thus owns 100% of the two Bolivian operating companies Illapa and Sinchi Wayra, which in turn own 45% of the Bolivar Mine, 45% of the Porco Mine, and 100% of the Caballo Blanco mining complex.

Sinchi Wayra is the operating company for all three active mining operations, including the Caballo mining complex.

1.3 Location

The Caballo Blanco project consists of three separate mines and one process plant operating as one to produce Zinc and Lead concentrates. An Important part of the supporting infrastructure includes two off-site power plants that produce supplemental electric power to the mines. The mines are relatively close together and located as follows:

Reserva and Tres Amigos Mines are located 31 km southeast of the city of Potosi, in the Canton Concepcion of the first section of the Tomas Frias Province of the Department of Potosi, at an average elevation of 4,536 masl, at UTM coordinates WGS-84: 218764E and 7814967N.

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Colquechaquita Mine is located 30 km southeast of the city of Potosi, in the Canton Concepcion of the first section of the Tomas Frias Province of the Department of Potosi, at an average elevation of 4,520 masl, at UTM coordinates WGS-84: 219915E and 7819380N.

The Don Diego Process plant is located about 23 km Northeast of the city of Potosi, in the Don Diego Canton, Municipality of Chaqui, Cornelio Saavedra Province, of the Department of Potosi. At an elevation of 3,550 masl at UTM coordinates WGS-84: 228933E and 7841150N.

There is a 60 km drive from the mines to the Don Diego Processing plant.

The Mines and Process plant have easy access to Potosi City which is a large industrial, mining, and population center. Road access to the Reserva mine from Potosi is 23 km south via the Potosi-Tarija interdepartmental paved highway towards Kuchu Ingenio, then 8 km East on gravel road. Road access to the Colquechaquita mine from Potosi is 16 km south via the Potosi-Tarija interdepartmental paved highway towards Kuchu Ingenio, for approximately 16 km, then 11 km East on gravel access road.

Don Diego plant also has site access to a rail spur for direct transport of concentrates to the preferred Port of Antofagasta Chile, or alternative ports of Arica, Chile, and Matarani, Peru.

1.4 History

Caballo Blanco is a result of business consolidation over time.

The Don Diego Plant began processing in 1977 and was originally acquired by the precursor of Sinchi Wayra S.A. (Sinchi Wayra); Compania Minera del Sur (COMSUR) in 1976. COMSUR purchased the specific mining interests from small private owners and operators loosely organized into cooperativas. The Colquechaquita mine began operating in 1977, passing to COMSUR in 1991, later changing its name to SINCHI WAYRA S.A. Sinchi Wayra took over the Reserva/TresAmigos mines in 2010. Tres Amigos obtained its environmental licenses to operate in 2005 by Sociedad Minero Metalúrgica Reserva Ltda. for its two sections of Exploitation Reserva and Tres Amigos, with a small-scale mining operation. Glencore became involved in 2005 with the purchase of COMSUR and effecting the name change to Sinchi Wayra.

Sinchi Wayra S.A. owns and operates all facets of the Caballo Blanco business; The Don Diego processing plant and Colquechaquita mine since their acquisition by Glencore in 2005, and Reserva and Tres Amigos mines from their acquisition in 2010. Glencore immediately began to develop the deposits with a higher degree of mechanization. The Power plants, Aroifilla thermal power plant, and the Yocalla hydro-electric plant which provide supplementary electric power are also owned and operated by Sinchi Wayra and are included under the management of Caballo Blanco Project.

On October 11, 2021, Santacruz entered into the Definitive Agreement with Glencore whereby Santacruz agreed to acquire a portfolio of Bolivian silver assets from Glencore. The Assets include: (a) Glencore's 45% interest in the Bolivar Mine and the Porco Mine, held through an unincorporated joint venture between Glencore's wholly-owned subsidiary Illapa and COMIBOL, a Bolivian state-owned entity; (b) a 100% interest in the Sinchi Wayra business, which includes the producing Caballo Blanco mining complex; (c) the Soracaya exploration project; and (d) the San Lucas ore sourcing and trading business.

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On March 18, 2022, Santacruz completed this purchase, including Glencore's interest in the Caballo Blanco mining complex. The Caballo Blanco mining complex has continued to operate since that date under the management of Santacruz.

**Figure 1-1: Project History**

![](ex99-28_001.jpg)

Source: Glencore (2021)

1.5 Geology
 and Mineralization

The Bolivar, Porco and Caballo Blanco deposits are located in the central part of the Eastern Cordillera, a thick sequence of Paleozoic marine siliciclastic and argillaceous sedimentary rocks deposited on the western margin of Gondwana and deformed in a fold-thrust belt. There were two major tectonic cycles in the Paleozoic: The Lower Paleozoic Famatinian cycle (the Tacsarian and Cordilleran cycles of Bolivia), and the Upper Paleozoic Gondwana cycle (Subandean cycle of Bolivia).

The Caballo Blanco zinc, silver, lead mine, situated south of Potosi, is located in the Jayaquila – Victoria corridor, a 5-7 km north-south structural zone with three sectors, from north to south, the Colquchaquita, Reserva, and Tres Amigos mines. They are not described in the published literature. They are hosted by volcanic rocks of the Kari-Kari volcanic complex, with dimensions of 32 km north-south and 12 km wide, located on the SE side of the Los Frailes felsic volcanic field that covers an area of 8,500 square kilometre (km<sup>2</sup>) at altitudes of 4,000 - 5,200 masl. The history started with intrusion of small granitoids at about 25 Ma at Kumurana, at the southern end of the Kari massif, and Azanaques. These were followed by the formation of Kari at about 20 Ma that is interpreted to be a resurgent caldera with welded ignimbrite fill. Ash flows, domes and stocks formed in the Cebadillas episode at 17-10 Ma, including the Cerro Rico dome with Ag-Sn mineralization at 13.8 Ma (Zartman & Cunningham, 1995; Cunningham et al., 1996; Rice et al., 2005). Huge volume felsic ash flows were erupted to form the Livicucho and Condor Nasa ignimbrites at 8-7 Ma and the main Los Frailes ignimbrites at 3.5-1.5 Ma. The final stages were the eruption of large resurgent rhyolitic domes at 4-1 Ma, and the Nuevo Mundo volcanic province at <1 Ma. (Francis et al., 1981; Schneider, 1985, 1987; Schneider & Halls, 1985; Kato, 2013; Kato et al., 2014; Kay et al., 2018).

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The rocks of the Kari complex are felsic, peraluminous, and rich in garnet, cordierite and tourmaline (Schneider, 1987).

Mineralization in its generality is characterized by being housed in Philonian structures divided into three domain orientations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Oriented
 at N 10° to 20° E, are Colquechaquita (Karina, Viviana, Camila), and some veins of
 Tres Amigos (Catalina, Milagros Este and Central);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Oriented
 N 10° to 30° W°; Reserve veins (Rosario, Wendy, Juanita and Blanquita), in Tres
 Amigos there is also within this system the vein (Ramo Catalina); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Corresponding
 to veins of the Porvenir sector where they have an N-S orientation, corresponding to Reserva
 (Veta Rosita) and in Tres Amigos (Milagros veins).

General mineralogy is composed of quartz-pyrite-chalcopyrite and marmatite, sphalerite, galena, boulangerite (Tres Amigos) as primary minerals; as accessory minerals we have siderite, calcite and ankerite at the trace level.

The mineralogy is quartz, pyrite, chalcopyrite, marmatite, sphalerite, galena and boulangerite with minor siderite, calcite and ankerite.

1.6 Metallurgical
 Testing and Mineral Processing

The metallurgical assumptions for recoveries and concentrate grades can be found in Table 1-1.

While both the lead and the zinc concentrates pay for the metal they are named for and for silver, a lead concentrate does not pay for zinc contained and the zinc concentrate does not pay for lead contained. The recoveries included in this report only include recovery to concentrates in which they can be paid.

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**Table 1-1: Recovery and Concentrate Grade Estimates**

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| &nbsp;&nbsp;**Parameter** | &nbsp;&nbsp;**Unit** | &nbsp;&nbsp;**Concentrates** | &nbsp;&nbsp;**Concentrates** | &nbsp;&nbsp;**Concentrates** | &nbsp;&nbsp;**Concentrates** |
| &nbsp;&nbsp;**Parameter** | &nbsp;&nbsp;**Unit** | &nbsp;&nbsp;**Lead Concentrate** | &nbsp;&nbsp;**Lead Concentrate** | &nbsp;&nbsp;**Zinc Concentrate** | &nbsp;&nbsp;**Zinc Concentrate** |
| &nbsp;&nbsp;**Parameter** | &nbsp;&nbsp;**Unit** | &nbsp;&nbsp;**Company Feed** | &nbsp;&nbsp;**Toll Feed** | &nbsp;&nbsp;**Company Feed** | &nbsp;&nbsp;**Toll Feed** |
| Zn Recovery | % | N/A | N/A | 94 | 1.0753\*(zinc feed grade) + 83.221 |
| Pb Recovery | % | 3.65\*(lead feed grade %) + 75.69 | 13.149\*(lead feed grade) + 39.576 | N/A | N/A |
| Ag Recovery | % | 0.0459\*(silver feed grade) +67.256 | -0.0398\*(silver feed) + 42.791 | -0.0225 x (silver feed grade) + 20.655 | 0.0246\*(silver feed grade) + 42.991 |
| **Concentrate Grade** | **Concentrate Grade** | **Concentrate Grade** | **Concentrate Grade** | **Concentrate Grade** | **Concentrate Grade** |
| Zn | % | 3.5 | 9 | 51 | 48 |
| Pb | % | 61 | 45 | 1.4 | 1.4 |
| Ag | g/t | 6460 | 4050 | 280 | 440 |

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1.7 Mineral
 Resource Estimate

The Caballo Blanco Project is an "advanced property" and has been in continuous production since 1993. Glencore and subsequently Santacruz Silver has performed exploration and resource expansion drilling of surface and underground drillholes at the Caballo Blanco since 2010 totalling 39,562.55 m. The 128 drillholes and 19,644 underground channels in the database were supplied in electronic format by Santacruz. This included collars, downhole surveys, lithology data and assay data (i.e., Ag g/t, Pb%, Zn%, Fe%, Sn%).

Verification of the Caballo Blanco drillhole and underground sample assay databases are primarily focused on silver, lead and zinc in addition to iron, arsenic, sulphur and tin. Sample databases were supplied in Excel<sup>TM</sup> format and in LeapFrog<sup>TM</sup>. Checks against source data and assay certificates showed agreement. Statistical analyses used to investigate and identify errors were performed and resulted in minor issues. These have been corrected and it is recommended that a continued program of random "spot checking" the database against assay certificates be employed.

During the 2023 site visit, an extensive independent sampling verification plan was implemented with a total of 80 samples collected across from the Bolivar, Porco and Caballo Blanco operations. The Don Diego laboratory is an NB/ISO/IEC 17025:2018 accredited laboratory which performs all assay analyses for the mining and processing operations for Sinchi Wayra including Caballo Blanco. The Don Diego laboratory in owned and operated by the Issuer, Santacruz.

Results of the verification samples indicates that the regression predictions perfectly fit the data meaning that the check sampling program successfully verified and validated the data and although, these results are not a complete audit of the laboratory, they do verify that the assay results are suitable for resource estimation purposes.

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The geological and lithological solid domain models were supplied by Santacruz in both Datamine<sup>TM</sup> and LeapFrog<sup>TM</sup> which are both industry-leading software systems. The QP imported the multiple vein domains into a similar system called MineSight<sup>TM</sup> to verify solids volumes and ensure matching of the solids domains against the drillhole and sample database. Results confirmed location and extent of volumes are appropriate to resource estimation purposes.

Resource block models were supplied in Datamine<sup>TM</sup> format which is an industry recognized software system used for resource estimation. These models were then imported to MineSight<sup>TM</sup> for verification of the resource estimation. In addition, independent estimations were run using the verified sample data and vein domains employing inverse distance estimations to ensure reasonableness and verify the resources independently. Results illustrated good agreement between the original and verification models. Verification of the SG regression analysis was also performed by comparing measured versus calculated density values.

The Qualified Person evaluated the resource in order to ensure that it meets the condition of "reasonable prospects of eventual economic extraction" as suggested under NI 43-101. The criteria considered were confidence, continuity and economic cut-off. The resource listed below is considered to have "reasonable prospects of eventual economic extraction".

Table 1-2 shows the Mineral Resource Statement for the Caballo Blanco deposit.

**Table 1-2: Base-Case Total Mineral Resources at 10.0% ZnEq Cut-off**

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|:---|:---|:---|:---|:---|:---|
| **Total Caballo Blanco 2023 Mineral Resources** | **Total Caballo Blanco 2023 Mineral Resources** | **Total Caballo Blanco 2023 Mineral Resources** | **Total Caballo Blanco 2023 Mineral Resources** | **Total Caballo Blanco 2023 Mineral Resources** | **Total Caballo Blanco 2023 Mineral Resources** |
| **Mine** | **Category** | **Tonnes ('000)** | **Zn (%)** | **Pb (%)** | **Ag (g/t)** |
| **Caballo Blanco** | Measured | 726 | 15.96 | 3.03 | 321 |
| **Caballo Blanco** | Indicated | 502 | 14.32 | 2.86 | 269 |
| **Caballo Blanco** | **Total M+I** | **1227** | **15.29** | **2.96** | **300** |
| **Caballo Blanco** | **Inferred** | **2217** | **13.28** | **2.12** | **199** |

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Notes:

1) The current Resource Estimate was prepared by Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd.

2) All mineral resources have been estimated in accordance with Canadian Institute of Mining and Metallurgy and Petroleum (CIM) definitions, as required under National Instrument 43-101 (NI43-101).

3) The Mineral Resource Estimate was prepared using a 10.0% zinc equivalent cut-off grade. Cut-off grades were derived from $25.20/oz silver, $1.38/lb zinc and $1.20/lb lead, and process recoveries of 92.1% for zinc, 77.2% for lead, and 90.8% for silver. This cut-off grade was based on current smelter agreements and total OPEX costs of $106.94/t based on 2022 actual costs plus capital costs of $42.33/t. All prices are stated in $USD.

4) An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

5) Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not account for a resource's mineability, selectivity, mining loss, or dilution. All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

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1.8 Mineral
 Reserve Estimate

The January 1, 2023 reserve estimate represents the validation of Santacruz's internally-generated mineral reserve estimate by QP Goodwin. All work on the reserve by the Santacruz mine design team and the validation exercises were done in Deswik<sup>TM</sup>. The following process was used for this work:

● An NSR calculation and cut-off grade (COG) was developed by the QP using data provided by Santacruz;

● The reserve estimation methodology was reviewed, checked, and approved by the QP;

● Mine technical staff prepared a Life of Mine Plan (LOM) for the deposits using the NSR and COG provided by the QP. The LOM plan was prepared specifically for this reserve estimation and does not include inferred resources; and

● All LOM models were downloaded and reviewed by the QP for conformance to the methodology, proper application of the NSR cut-off grade, and correct application of agreed upon dilution and recovery factors.

The QP is satisfied that this exercise resulted in a valid reserve determination.

The Mineral Reserve Estimate for Caballo Blanco is shown in Table 1-3.

**Table 1-3: Mineral Reserve Estimate for Caballo Blanco (January 1, 2023)**

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| **Mine** | **Category** | **Tonnes** | **Zn (%)** | **Pb (%)** | **Ag (g/t)** |
| **Colquechaquita** | Proven | 207000 | 10.49 | 2.16 | 174 |
|  | Probable | 212000 | 8.68 | 2.77 | 187 |
|  | **Total** | **420000** | **9.57** | **2.47** | **181** |
| **Reserva** | Proven | 168000 | 9.21 | 1.34 | 110 |
|  | Probable | 177000 | 8.74 | 1.08 | 93 |
|  | **Total** | **345000** | **8.97** | **1.21** | **101** |
| **Tres Amigos** | Proven | 194000 | 9.88 | 1.95 | 355 |
|  | Probable | 75000 | 6.16 | 1.73 | 272 |
|  | **Total** | **269000** | **8.84** | **1.89** | **332** |
| **Total Caballo Blanco** | Proven | 569000 | 9.90 | 1.85 | 217 |
|  | Probable | 465000 | 8.30 | 1.96 | 165 |
|  | **Total** | **1034000** | **9.18** | **1.90** | **193** |

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1.9 Mining

The Caballo Blanco Mine has been in operation for 20 years. Although the mine is managed as a single business, it is actually composed of three different mines on the same mineralized trend: Reserva, Tres Amigos and Colquechaquita.

Although development to connect the mines is in process, there still exists some autonomy in how each are operated. The application of mining methods has thus been an adaptation of mining equipment technologies, evaluation and monitoring tools to the specific mineralized zones. The last decade of operations under the guidance of Glencore, the mine has seen a move to more mechanized methods to improve safety performance and mine productivity.

The three mining operations follow steeply dipping veins striking predominantly North/South. Veins vary in width from 0.2 to 2.5 m, the wider and more consistent veins being mined using more productive longhole methods.

1.9.1 Reserva

Reserva mine is the youngest and most modern of the three mines. Mine production is about 275 t/d. A long section of the Reserva mine is shown in Figure 1-2.

All mining is done with sublevel longhole methods and trackless development. In principle, the AVOCA method being used has all the productivity advantages of longhole stoping and allows for concurrent backfill to continuously support the relatively weak hanging wall. Backfill for stoping is generated from development mining. The method is demonstrated in Figure 1-3.

**Figure 1-2: Long Section Reserva Mine**

![](ex99-28_002.jpg)

Source: Glencore (2021)

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**Figure 1-3: Avoca Mining at Reserva Mine**

![](ex99-28_003.jpg)

Source: Glencore (2021)

1.9.2 Colquechaquita
 Mine

Colquechaquita mine has been in production since 1991 using tracked development, and stoping by conventional shrinkage and cut and fill methods. The mine produces about 230 tonnes (t) of mineralized material per day. A long section of the Colquechaquita Mine is shown in Figure 1-4.

The transition to mechanized mining is in process but still in the early stages. Approximately 50% production continues to be generated from conventional methods. The southern portion of the mine is moving to trackless development. However, equipment brought into the mine must be disassembled and moved in the shaft which is time consuming and labor intensive.

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**Figure 1-4: Long Section Colquechaquita Mine**

![](ex99-28_004.jpg)

Source: Glencore (2021)

1.9.3 Tres
 Amigos Mine

Tres Amigos, shown in Figure 1-5, remains a conventional tracked mine using mostly a modified shrinkage stoping method, as shown in Figure 1-6.

The mineralized zones are narrow and high-grade making them well suited to these more selective stoping methods. However, higher productivity trackless mechanized methods are used for primary development and ramps. Stoping takes place generally above the -200 level and mineralized material production averages approximately 300 t/d. Mineralized material is hauled by rail either to the main Catalina shaft for hoisting to surface or hauled directly to surface using trucks.

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**Figure 1-5: Isometric of the Tres Amigos Mine**

![](ex99-28_005.jpg)

Source: Glencore (2021)

**Figure 1-6: Shrinkage Mining as Practiced at Tres Amigos**

![](ex99-28_006.jpg)

Source: Glencore (2021)

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1.9.4 Mine
 Equipment

The mine employs the following mining equipment:

● Five Resemin Muki FF single boom jumbo rigs with a power of 75 HP that drill between 2.40 and 3.0 m long holes. They are generally used for secondary development (horizontal vein developments) to prepare sublevels whose nominal dimensions are 3.0 m x 3.5 m. Occasionally they are used in small primary development headings;

● Two Atlas Copco Boomer single boom jumbo rigs with a power of 75 HP that drill between 3.7 and 4.0 m long holes. They are generally used for primary development headings;

● Two Resemin Small Bolter 77 units to install rockbolts and mesh. These units have a power of 75 HP with a drilling capacity of 3.0 m;

● Three Resemin long hole drills are used for drilling long holes using the "Sub Level Stoping" method. These have a drill range of 15 to 20 m;

● Thirteen scooptrams ranging in size from 0.54 to 4.5 cubic meter (m<sup>3</sup> *)* bucket capacity; and

● Six Dux Volquete 12 t haulage trucks.

Key production data from 2022 are shown by mine on Table 1-4.

**Table 1-4: Key Production Data from 2022**

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| | **Reserva Mine** | **Tres Amigos Mine** | **Colquechaquita Mine** | **Total** |
| Production (tonnes) | 81938 | 118633 | 77504 | 278074 |
| Waste rock moved (tonnes) | 52563 | 71551 | 30863 | 154977 |
| Backfill Hauled (tonnes) |  |  |  |  |
| Zinc (%) | 6.90 | 6.40 | 6.39 | 6.55 |
| Lead (%) | 0.99 | 2.13 | 1.24 | 1.55 |
| Silver (g/t) | 95 | 284 | 103 | 178.21 |
| Primary Devt Horizontal (m) | 1834 | 1353 | 1044 | 4232 |
| Primary Devt Vertical (m) | 207 | 228 | 415 | 851 |
| Secondary Devt Horizontal (m) | 1426 | 3282 | 1320 | 6028 |
| Secondary Devt Vertical (m) | 191 | 549 | 403 | 1142 |

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1.10 Recovery
 Methods

The plant flowsheet for the Don Diego mill is a typical sequential flotation circuit for lead and zinc. The feed is crushed in preparation for the grinding circuit. The grinding circuit utilizes a SAG/Ball mill combination to produce a product size P<sub>80</sub> of 100 µm for the flotation circuit.

The flotation circuit starts with the lead recovery circuit. In this circuit a rougher concentrate is produced, which is then cleaned without regrinding, in column flotation cells. The lead rougher tailings and cleaner tailings are combined and fed to the zinc circuit. The zinc circuit consists of rougher flotation and one stage of cleaning to produce a zinc concentrate. The zinc circuit tailings are deposited in the tailings pond. Both of the concentrates are filtered for shipping to the smelter. The lead concentrate is bagged for shipping, while the zinc concentrate is shipped bulk in trucks.

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**Figure 1-7: Don Diego Mill Flowsheet**

![](ex99-28_007.jpg)

Source: Glencore (2021)

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1.11 Infrastructure

Each of the three mining complexes that form the Caballo Blanco Project is supported by its own infrastructure, as detailed by mine in this section.

1.11.1 Mina
 Reserva

The Mina Reserva operation is surrounded by a facilities fence, inside of which are the following facilities:

● Various technical, administrative offices, and mine operations office;

● A maintenance facility for all surface and underground equipment;

● A mud dam for settling solids from the mine water;

● Warehousing facilities;

● A worker camp;

● A dining hall for technical and administrative staff;

● A first aid station;

● Water treatment; and

● Mine services, such as power, water supply, and compressed air.

The existing infrastructure for Mina Reserva is shown in Figure 1-8. Key facilities are identified by number on the drawing.

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**Figure 1-8: Infrastructure for Mina Reserva**

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Source: Santacruz (2023)

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1.11.2 Mina
 Tres Amigos

The Mina Tres Amigos operation is also surrounded by a perimeter fence and similarly equipped with all mine services, including, inside of which are the following facilities:

● Various technical, administrative offices, and mine operations office;

● A maintenance facility for all surface and underground equipment;

● A mud dam for settling solids from the mine water;

● Warehousing facilities;

● A worker camp;

● A dining hall for technical and administrative staff;

● A first aid station;

● Water treatment;

● Mine services, such as power, water supply, and compressed air; and

● The Catalina headframe atop the mine shaft.

The existing infrastructure for Mina Reserva is shown in Figure 1-9. Key facilities are identified by number on the drawing.

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**Figure 1-9: Infrastructure for Mina Tres Amigos**

Source: Santacruz (2023)

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1.11.3 Mina
 Colquechaquita

The Mina Colquechaquita operation is also surrounded by a perimeter fence and similarly equipped with all mine services, including, inside of which are the following facilities:

● Various technical, administrative offices, and mine operations office;

● A maintenance facility for all surface and underground equipment;

● A mud dam for settling solids from the mine water;

● Warehousing facilities;

● A worker camp;

● A dining hall for technical and administrative staff;

● A first aid station;

● Water treatment; and

● Mine services, such as power, water supply, and compressed air.

The existing infrastructure for Mina Reserva is shown in Figure 18-2Figure 1-10. Key facilities are identified by number on the drawing.

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**Figure 1-10: Infrastructure for Mina Colquechaquita**

![](ex99-28_010.jpg)

Source: Santacruz (2023)

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1.12 Environmental
 and Permitting

1.12.1 Environmental
 Considerations

Responsible environmental management is a critical part of Santacruz's license to operate and our responsible, compliant operation of Bolivian assets has continued for the last 30 years. Environmental Compliance with national laws and regulations is the basis of Santacruz's environmental management system and is governed by a framework of oversight by the relevant Environmental Authority. Its environmental commitments are reported to the authorities annually in an Environmental Monitoring Report, which summarizes environmental management of its operations under applicable laws and regulations.

1.12.2 Waste
 and Water Management

Waste management is an important part of Santacruz's Comprehensive Environmental Management, which includes a waste management plan to classify, handle, and store waste separately for proper disposal or treatment. Waste management complies with Environmental Law No. 1333, its Regulations on Solid Waste Management, and its supplementary regulations, focusing primarily on the sectoral requirements of the Environmental Regulation for Mining Activities for waste rock and tailings.

1.12.2.1 Solid
 Waste

The Don Diego process plant is distal from the mines which feed it. The process plant along with the Tailings Storage Facility are located about 23 km Northeast of the city of Potosi, in the Don Diego Canton, Municipality of Chaqui, Cornelio Saavedra Province, of the Department of Potosi. At an elevation of 3,550 masl at UTM coordinates WGS-84: 228933E and 7841150N. There is a 60 km drive from the mines to the Don Diego Processing plant.

The Chilimocko tailings storage facility at Don Diego is inspected regularly and maintained to the standards set out by the Canadian Dam Association guidelines. The dam is under the supervision of engineers from AMEC (now Wood Engineering) and recently an external audit was conducted by Knight Piésold Consulting. The Chilimocko Dam is 55 m high, downstream-constructed dam. The Stage IV raise was completed in 2019 and current crest elevation is 3,625 m. Construction for the next expansion is planned to begin in 2024 and conclude 12 months later.

The company also monitors and manages 4 inactive tailings facilities (1, 2, 3 & Yanakasa) at the Don Diego location.

Yana Khasa is a 40 m high, upstream-constructed dam, which contains 2.2 Mm<sup>3</sup> of tailings. Recent activities at the site include Repositioning piezometers, cleaning of the standpipe piezometers to improve groundwater monitoring, and Installation of fences to protect instrumentation; and

Dikes 1, 2, and 3 are, upstream constructed dams which contain a total of 0.4 Mm<sup>3</sup> of tailings. Recent activities at the sites include cleaning of the standpipe piezometers to improve groundwater monitoring and Installation of fences to protect the instrumentation.

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Although mine waste rock is preferentially stored underground or used as backfill, each of the mines has a permitted and designed waste rock storage area designed for stability, as well as the prevention of acid rock drainage and metal leaching. Sludge from the water treatment plants is deposited in lined ponds adjacent to the treatment plants. Given the mines' proximity to the City of Potosi, Domestic and Medical waste disposal are managed through the Municipal Garbage Collection Service. Industrial waste such as scrap metal, used Oil, tires, etc. is temporarily stored at each mining unit and collected by companies specialized in recycling.

1.12.2.2 Water
 Management

Each of the mines produces enough water to treat and reuse for industrial use on site. Excess treated water is discharged to the environment at regulated quality standards. Annually, a total of 2.5 Mm<sup>3</sup> of mine water is treated and 2.4 Mm<sup>3</sup> discharged from two water treatment plants.

Given the remote location of the process plant, which is usually the largest water consumer, each mine treats and discharges excess water to the environment. These discharges are regulated for quality and quantity by the environmental license. End uses include consumption by neighboring communities and agricultural/industrial use by llama ranchers and mining cooperatives downstream. Caballo Blanco supplies two thousand cubic meters of treated water per year to the local sanitary administration (AAPOS) to support industrial activities and discharges the remaining treated water to the Jayaquila and Mocaña rivers. Caballo Blanco is able to meet discharge requirements with aeration, pH adjustment and clarification by settling.

Don Diego process plant maximizes the recirculation of water from its tailing storage facility and draws makeup water from permitted surface sources.

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**Figure 1-11: Caballo Blanco Mine Water Balance**

Source: Sustainability Report, Sinchi Wayra (2022)

1.12.3 Permitting

Santacruz Silver operates the Bolivar mine as a joint venture with the Bolivian Government (COMIBOL) The structure of the contract with COMIBOL is a "Partnership Contract governing Bolivar and Porco Mines (CA-MBP), and its purpose is to develop and implement a mining operation for the treatment of the existing mineralogical reserves and resources in the Bolívar and Porco Mines, by the exploitation, preparation, beneficiation and sale of mineral concentrates. Contrato de Asociación Sociedad Minera Illapa S.A. is authorized as operator and responsible of executing on behalf of COMIBOL, all the operations and activities of the association contract. The shares of CA-MBP are 55% for COMIBOL and 45% for Contrato de Asociación Sociedad Minera Illapa S.A." This renewable agreement expires in 2028.

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Mining Contracts that grant the right to the subsoil mining resource are granted by the Mining Administrative Jurisdictional Authority (AJAM) over the ATE mining areas, and a contract is granted for each area or contiguous group of areas. Recent changes to the laws and government personnel have pushed Santacruz contract updates into a transitionary period waiting for final signatures and approvals. Santacruz holds Special Transitory Authorizations for each contract area which are officially designated "Mining Administrative Contracts for Adaptation". As of the effective date, approximately half of the applications have been transitioned, and the remainder fall under Article 187 of Law No. 535 on Mining and Metallurgy, which states:

*<u>ARTICLE 187</u>. (CONTINUITY OF MINING ACTIVITIES). Holders of Special Transitory Authorizations to be adapted or in the process of adaptation will continue their mining activities, with all the effects of their acquired or pre-constituted rights until the conclusion of the adaptation procedure.* 

Santacruz has fully complied with this administrative procedure and is waiting for the Mining Administrative Authority to issue the relevant documents. It should be noted that this public entity has a considerable delay in the issuance of these documents.

Environmental Licenses have been formally granted to allow operation for all mining activity, by the Ministry of Environment and Water. The following table shows the licenses held by Santacruz.

**Table 1-5: Environmental Licenses Held by Santacruz**

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| | |
|:---|:---|
| **Operation** | **License** |
| Bolívar | 040603-02-da-0324/14 |
| Porco | 051203-02-da-0031/14 |
| Caballo Blanco – Colquechaquita Mine | 050101-02-da-131/11 |
| Caballo Blanco – Mina Reserva and Tres Amigos | 050101-02-da-561/11 |
| Caballo Blanco – Don Diego Concentrator Plant | 050302-02-da-003/2024 |
| Caballo Blanco – San Lorenzo Mine | 050101-02-da-005/06 |
| Comco | 050101-02-da-006/09 |
| Soracaya | 050801-02-CD-C3-002/2017 |
| Aroifilla Thermoelectric Plant | 050101-04-da-007/2023 |
| Yocalla Hydroelectric Plant | 050103-05-da-006/2023 |

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1.12.4 Community
 Relations

Santacruz mining projects are mostly well-established operations with a long history and a developed infrastructure, which provide direct benefits to employees and supporting businesses. However, the mines are located in rural to semirural areas in which the surrounding mostly agricultural communities can benefit from each operation only indirectly or through company outreach. Santacruz supports these communities by addressing services that are lacking, and helping to create value with economic development programs, and other forms of support.

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1.12.4.1 Caballo
 Blanco

Caballo Blanco comprises a business unit with mines spread across several kilometers on the same mineralized trend and an offsite process plant and tailing facility, all proximal to the city of Potosí. Unlike Bolívar and Porco, Caballo Blanco does not have an adjacent campsite. Most employees live in the communities surrounding the city of Potosí. The mines are named Colquechaquita, Reserva, and Tres Amigos. The Don Diego Plant is located 60km away by road; other supporting units are central administrative offices in Potosí, the Thermal Power Plant in Aroifilla, and the Hydroelectric Power Plant in Yocalla. Operations at Caballo Blanco are not yet consolidated and require independent management and support. Mine operations, maintenance, planning, safety and environment, groups are separate for each mine.

Since Caballo Blanco covers a wide area, it affects many small communities. Consequently, at Caballo Blanco a large area is monitored including 13 small communities which include a population of more than 500 families or around 2,500 community members. Several mining cooperatives are also involved.

In the area of Colquechaquita, Reserva and Tres Amigos, the communities are scattered and sparsely populated, but host the settlement of cooperative miners downstream from our mining operations. Additionally, camelids are bred near the wetlands of the Jayaquilla River and Mocaña Mayu.

Adjacent to the Concentrator Plant is the settlement of Don Diego, where several Santacruz employees live. There are also other more distant and less populated communities.

Santacruz's community investment programs are aimed mostly at communities directly influenced by the operations. Community investments are designed to maximize positive impact, recognizing that each community has unique requirements and living conditions; therefore, Santacruz prioritizes based on number of beneficiaries, vulnerability, long-term sustainability, and urgency of need.

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**Figure 1-12: Caballo Blanco Surrounding Communities**

![](ex99-28_012.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

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**Figure 1-13: Caballo Blanco Community Investment**

Source: Sustainability Report, Sinchi Wayra (2022)

1.12.5 Mine
 Closure

Closure Planning for Operations has social, economic, workforce, and environmental impacts, so conceptual closure plans are shared with communities. Santacruz's goal is to recover areas by establishing a healthy ecosystem capable of sustaining productive land use, ensuring the best possible environmental conditions, including physical, chemical, biological, and ecosystem aspects, at closure. Environmental superintendents are responsible for monitoring the environmental closure planning, and periodic reviews of these plans are conducted, including surveys of areas and activities to adjust financial provisions for closure.

Land Use and Rehabilitation - environmental challenges related to biodiversity protection, soil restoration, and land use, are addressed through dialogue with stakeholders, including local communities and relevant authorities. Our comprehensive environmental management focuses on minimizing disturbed areas. In 2022, Santacruz managed a total of 6,600 hectares of land covered by Temporary Special Authorizations (ATEs) granted by the Mining Administrative Jurisdiction Authority (AJAM), under leasing contracts with the Government through COMIBOL. However, Santacruz's processing activities, services, and related infrastructure (industrial area) currently occupy only 400.5 hectares of land, including areas of previous mining operations and other areas with environmental closure located within the properties Santacruz manage.

In 2022, Santacruz continued with the reforestation plan in the Queaqueani Dam area, in accordance with an agreement with the community of the same name, and significant progress was made in the progressive closure of the old tailings facilities at the Don Diego Concentrator Plant.

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1.13 Capital
 and Operating Cost Estimates

1.13.1 Capital
 Costs

The Caballo Blanco mine has been in continuous operation for many years. There will be, as the reserve is expanded and developed, the need for step changes in mine access, production or haulage methods, that may require large capital outlays. These will be financially justified as needed. However, the capital needs for continued operation to exploit the remaining reserves is limited to Primary mine development, Capital equipment rebuilds and replacements, and Tailing Storage Facility expansions. Average annual capital has been and is projected to be in the 11 to 12 $M range.

The historic total capital requirement for all the Bolivian operations is shown in Table 1-6, with Caballo Blanco requirements bolded and italicized. Caballo Blanco's projected capital requirements for 2023 to 2027 is shown in Table 1-7.

**Table 1-6: Actual Combined Capital Requirement for All Bolivian Operations, 2017 to 2022 ($M)**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **2017** | **2018** | **2019** | **2020** | **2021** | **2022** |
| **Bolivar** | **8.8** | **13.7** | **13.7** | **6.3** | **11.3** | **10.2** |
| Porco | 3.0 | 8.8 | 8.4 | 3.6 | 5.3 | 3.1 |
| **Reserva** | **1.3** | **2.4** | **2.1** | **2.0** | **4.3** | **3.5** |
| **Tres Amigos** | **2.1** | **2.6** | **1.5** | **1.8** | **2.2** | **3.0** |
| **Don Diego** | **0.9** | **6.9** | **1.4** | **0.9** | **1.1** | **1.2** |
| **Colquechaquita** | **1.2** | **2.0** | **1.4** | **1.0** | **3.0** | **2.5** |
| La Paz | 3.3 | 0.6 | 0.3 | 0.4 | 0.2 | 0.7 |
| Soracaya | 0.5 | 2.1 | 0.2 | 0.1 |  |  |
| San Lucas | 0.8 | 0.0 | 0.0 | 0.1 | 0.4 |  |
| **Total** | **21.8** | **39.0** | **28.5** | **16.3** | **27.8** | **24.3** |

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Source: Santacruz (2023)

**Table 1-7: Projected Capital Requirement for all Caballo Operations, 2021 to 2027 ($M)**

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|:---|:---|:---|:---|:---|:---|:---|
| | **2023** | **2024** | **2025** | **2026** | **2027** | **2028** |
| Engineering/Admin | 0.0 | 0.0 |  |  |  |  |
| Safety/Environmental | 0.8 | 3.0 | 2.1 | 2.0 | 0.1 |  |
| Mobile Equipment/Maint | 1.6 | 3.7 | 2.6 | 3.8 | 2.1 | 1.8 |
| Plant | 0.4 | 0.7 | 0.7 | 0.7 | 0.5 | 0.5 |
| Exploration | 0.4 | 0.3 | 1.5 | 1.4 | 1.3 | 0.7 |
| Primary development | 6.5 | 6.0 | 6.8 | 5.6 | 4.4 | 2.4 |
| Corporate |  |  |  |  |  |  |
| **Total** | **9.8** | **13.7** | **13.7** | **13.5** | **8.3** | **5.4** |

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Source: Santacruz (2023)

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Recurring exploration and primary development costs have been included in the COG calculations to better anticipate and account for total costs and make the COG more meaningful for reserve estimation and mine planning.

1.13.2 Operating
 Costs

Costs used for cut-off grade analysis were taken from actual costs for 2022. The actual cost of corporate G&A was allocated to each of the businesses.

**Table 1-8: Unit Operating Costs ($/t)**

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|:---|:---|
| **Mine** | **75.66** |
| Mine operations | 42.13 |
| Mine maintenance | 19.19 |
| Indirect | 14.34 |
| Plant | 17.10 |
| Warehouse | 0.89 |
| G&A | 13.28 |
| **Total** | **106.94** |

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Source: Santacruz (2023)

Mine operations include direct costs of mining, including labor, energy, materials, and services.

Mine Equipment Maintenance Costs includes maintenance to all equipment related to direct development, exploitation and haulage, as well as service equipment such as pumping, ventilation, winches, etc.

Indirect costs would include Site Management, Technical services, Site Administration, Environmental and Social, Safety and Security.

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Plant costs include direct Beneficiation costs as well as plant maintenance, and indirect costs.

Warehouse costs refer to Concentrate handling and storage.

General and Administration includes allocated Bolivian corporate costs.

1.14 Economic
 Analysis

1.14.1 Result

The Reserve Estimate was generated using actual costs experienced during a stable production period following the change in management after the purchase of the mine by Santacruz Silver (2022 and beginning of 2023). Actual costs were used for mine operating, concentrate overland transport, port costs, and shipping as well as smelting fees, payment terms, and penalty charges. A simplified Cash flow model was built to model the costs and conditions used to generate the Reserve estimates stated in this report.

The Caballo Blanco mine is part of a multi-operation business. However, the Economic model treats it as a separate financial entity with Bolivian corporate costs allocated for the analysis. As well, the operation is comprised of three mines which feed one offsite Process plant. The financial modelling examines the value of the consolidated operation on a 100% basis to support the Reserve statement.

The Caballo Blanco mines have been in continuous operation for several decades and the deposits are a network of relatively narrow veins. These two aspects drive the normal exploitation process of the mine, where inferred resources are converted and exploited in the same budget year. Resources are generally proven-up by drifting and sampling instead of drilling. Therefor normal budgeting and mine planning includes resources outside of the Reserve estimate.

For the current exercise in this report, only Proven and Probable reserves are included in financial evaluation, so the production schedule represents the depletion of these reserves at average grade and current production rates. The context of the production schedule exploits the Proven and Probable reserves as part of a continuous operation and as such does not include the closure activities.

**Table 1-9: Production Forecast – Mining and Processing**

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|:---|:---|:---|:---|:---|:---|
| | **Unit** | **2023** | **2024** | **2025** | **2026** |
| **Mine Production** |  |  |  |  |  |
| **Tonnes Mined** | (DMT) | 300000 | 300000 | 300000 | 133512 |
| **Tonnes Processed** | (DMT) | 300000 | 300000 | 300000 | 133512 |
| **Head Grades** |  |  |  |  |  |
| Zinc | (%) | 9.18 | 9.18 | 9.18 | 9.18 |
| Lead | (%) | 1.90 | 1.90 | 1.90 | 1.90 |
| Silver | g/t | 193 | 193 | 193 | 193 |

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Notes:

FMT = Fine Metric Tonnes; DMT = Dry Metric Tonnes; FOT = Fine Ounces Troy

Source: Santacruz (2023)

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Metallurgical recoveries and concentrate qualities are actual for the times and head grades that were actually mined. These parameters will necessarily be conservative considering the higher grades in the production schedule.

**Table 1-10: Production Forecast - Concentrate**

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|:---|:---|:---|:---|:---|:---|
| | **Unit** | **2023** | **2024** | **2025** | **2026** |
| **Concentrates** |  |  |  |  |  |
| Zinc | (DMT) | 50298 | 50298 | 50298 | 22384 |
| Zn Conc. Grade | (%) | 50 | 50 | 50 | 50 |
| Ag (in Zinc) | g/t | 218 | 218 | 218 | 218 |
| Zn Recovery | (%) | 92 | 92 | 92 | 92 |
| Ag (in Zinc) | (%) | 19 | 19 | 19 | 19 |
| Lead | (DMT) | 7531 | 7531 | 7531 | 3352 |
| Pb Conc. Grade | (%) | 58 | 58 | 58 | 58 |
| Ag (in lead) | g/t | 5482 | 5482 | 5482 | 5482 |
| Pb Recovery | (%) | 77 | 77 | 77 | 77 |
| Ag (in Lead) | (%) | 72 | 72 | 72 | 72 |
| **Metal Recovery** |  |  |  |  |  |
| Zinc | (FMT) | 25356 | 25356 | 25356 | 11284 |
| Silver (in Zinc) | (FOT) | 352759 | 352759 | 352759 | 156992 |
| Lead | (FMT) | 4402 | 4402 | 4402 | 1959 |
| Silver (in Lead) | (FOT) | 1330079 | 1330079 | 1330079 | 591938 |
| Silver (Total) | (FOT) | 1682838 | 1682838 | 1682838 | 748930 |

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Notes:

FMT = Fine Metric Tonnes; DMT = Dry Metric Tonnes; FOT = Fine Ounces Troy

Source: Santacruz (2023)

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That same logic follows to the net revenue generation (Table 1-11) which includes smelter charges and penalty fees.

**Table 1-11: Revenue and Cost Projection ($M)**

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|:---|:---|:---|:---|:---|:---|
| | **Unit** | **2023** | **2024** | **2025** | **2026** |
| **Payable Metal Revenue** |  |  |  |  |  |
| Zinc |  | 64 | 64 | 64 | 29 |
| Metallurgical Deduction |  | 10 | 10 | 10 | 5 |
| **Gross Payable Zinc** |  | 54 | 54 | 54 | 24 |
| Lead |  | 10 | 10 | 10 | 4 |
| Metallurgical Deduction |  | - | - | - | - |
| **Gross Payable Lead** |  | 9 | 9 | 9 | 4 |
| Silver |  | 35 | 35 | 35 | 16 |
| Metallurgical Deduction in Zinc | Metallurgical Deduction in Zinc | 4 | 4 | 4 | 4 |
| Metallurgical Deduction in Lead | Metallurgical Deduction in Lead | 1 | 1 | 1 | 1 |
| **Gross Payable Silver** |  | 30 | 30 | 30 | 13 |
| **Gross Revenue (Total)** |  | 93 | 93 | 93 | 41 |
| **Smelter Charges and Penalties** | **Smelter Charges and Penalties** |  |  |  |  |
| Treatment charges Zn | (USD/t) | 277 | 277 | 277 | 277 |
| Treatment charges Zn |  | 14 | 14 | 14 | 6 |
| Treatment charges Pb | (USD/t) | 133 | 133 | 133 | 133 |
| Treatment charges Pb |  | 1 | 1 | 1 | - |
| Penalties in Zn | (USD/t) | 3 | 3 | 3 | 3 |
| Penalties in Zn |  | - | - | - | - |
| Penalties in Lead | (USD/t) | 71 | 71 | 71 | 71 |
| Penalties in Lead |  | 1 | 1 | 1 | - |
| Refining Charges in Pb | (USD/FOZ) | 1 | 1 | 1 | 1 |
| Refining Charges in Pb |  | 2 | 2 | 2 | 1 |
| **Smelter Fees and Penalties** | **Smelter Fees and Penalties** | **15** | 17 | 17 | 17 |
| **Net Revenue** |  | 277 | 277 | 277 | 277 |
| **Operating Costs** |  |  |  |  |  |
| **Production Costs** |  | 30 | 30 | 30 | 14 |
| **Cost of Sales** |  |  |  |  |  |
| Rail Freight Zn |  | - | - | - | - |
| Rail Freight Pb |  | - | - | - | - |
| Port Expenses Zn |  | 2 | 2 | 2 | 1 |
| Port Expenses Pb |  | - | - | - | - |
| Rollback Fee Zn |  | 5 | 5 | 5 | 2 |
| Rollback Fee Pb |  | 1 | 1 | 1 | - |
| **Concentrate Freight and Port Costs** | **Concentrate Freight and Port Costs** | **8** | 8 | 8 | 8 |
| **Mine Royalty** |  | 6 | 6 | 6 | 3 |
| **Communities and Unions** |  | 2 | 2 | 2 | 1 |
| **Selling Costs** |  | 16 | 16 | 16 | 7 |
| **Total Cost of Sales** |  | 46 | 46 | 46 | 21 |

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Source: Santacruz (2023)

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Depreciation is a product of previous operation and annual capital expenditure incurred for the exploitation of the reserve tonnage. Capital is limited to that required to support mining, processing, and tailing storage for the reserve. Corporate G&A is that part of the in-country costs allocated to the Caballo Blanco mine.

**Table 1-12: Cashflow Projection ($M)**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **2023** | **2024** | **2025** | **2026** |
| **Income Statement** |  |  |  |  |
| Net Revenue | 76 | 76 | 76 | 34 |
| Production Costs | -30 | -30 | -30 | -14 |
| Selling Costs | -16 | -16 | -16 | -7 |
| Depreciation | -10 | -9 | -9 | -11 |
| **Gross Profit** | 19 | 20 | 21 | 2 |
| Corporate G&A | -3 | -4 | -4 | -2 |
| **Operating profit** | 16 | 16 | 17 | 0 |
| **EBIT** | 16 | 16 | 17 | 0 |
| Income Tax Expense (CIT) | -6 | -6 | -6 | 0 |
| **Net Gain/(Loss) for the year** | 10 | 10 | 10 | 0 |
| **Cashflow Statement** |  |  |  |  |
| **Cash from Operations Activities** |  |  |  |  |
| Net Income | 10 | 10 | 10 | 0 |
| Depreciation | 10 | 9 | 9 | 11 |
| **Subtotal** | 20 | 19 | 19 | 11 |
| **Cash from Investing Activities** |  |  |  |  |
| Sustaining Capital Expenditure | -9 | -13 | -7 | 0 |
| **Subtotal** | -9 | -13 | -7 | 0 |
| **Cash Balance** |  |  |  |  |
| Beginning | 0 | 11 | 17 | 29 |
| Change in Cash | 11 | 6 | 12 | 11 |
| **Ending** | &nbsp;&nbsp;**11** | &nbsp;&nbsp;**17** | &nbsp;&nbsp;**29** | &nbsp;&nbsp;**40** |

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Source: Santacruz (2023)

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Income tax is 37.5% of the EBIT. As seen, the operations generate a positive cash flow after tax upon exploitation of the stated reserve at the metal prices used to generate the reserve.

1.14.2 Sensitivities

A univariate sensitivity analysis was performed to examine which factors most affect the Project economics when acting independently of all other cost and revenue factors. Each variable evaluated was tested using the same percentage range of variation, from -20% to +20%, although some variables may experience significantly larger or smaller percentage fluctuations over the LOM. For instance, the metal prices were evaluated at a ±20% range to the base case, while the capex and all other variables remained constant. This may not be truly representative of market scenarios, as metal prices may not fluctuate in a similar trend. The variables examined in this analysis are those commonly considered in similar studies – their selection for examination does not reflect any particular uncertainty.

Notwithstanding the above noted limitations to the sensitivity analysis, which are common to studies of this sort, the analysis revealed that the Project is most sensitive to metal pricing. The Project showed the least sensitivity to capital costs. Figure 1-14 shows the results of the sensitivity analysis.

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 1-34

**Figure 1-14: Univariate Sensitivities**

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![](ex99-28_014.jpg)

1.15 Observations,
 Risks, Opportunities and Recommendations

1.15.1 Observations

The Caballo Blanco Project is located in the Cordillera de los Azanaques, forming the western edge of the Cordillera Oriental, which is detached from the Cordillera de los Frailes, belonging to the group of central mountain ranges. Characterized by the essence of undulating plateaus, outstanding mountains parallel to the course of the Andes, with elevations that vary between 3,400 and 4,600 masl. The area is part of the polymetallic belt of the altiplano and the Cordillera Occidental.

The most important ore deposits of the Eastern Cordillera are polymetallic hydrothermal deposits mined principally for Sn, W, Ag and Zn, with sub-product Pb, Cu, Bi, Au and Sb. They are related to stocks, domes and volcanic rocks of Middle and Late Miocene age (22 to 4 Ma). Mineralization occurs in veins, fracture swarms, disseminations and breccias. The deposits of the Eastern Cordillera are epithermal vein and disseminated systems of Au, Ag, Pb, Sb, as that have been telescoped on to higher temperature mesothermal Sn-W veins and, in some cases, porphyry Sn deposits. The telescoping is a characteristic of these deposits and is the result of collapse of the hydrothermal systems, with lower temperature fluids overprinting higher temperature mineralization. The systems show a fluid evolution from a high temperature, low sulphidation state to intermediate sulphidation epithermal and high sulphidation epithermal.

The Caballo Blanco Project is an "advanced property" and has been in continuous production since 1993.

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The QPs found that Caballo Blanco is a well-managed operation that should be capable of sustaining profitable operations for many years to come in the same fashion as it has operated for the past several years.

The reserves were found to be estimated correctly using industry-standard techniques and procedures and industry-standard software by diligent and competent professionals.

The mine has an ample provision of skilled workers. Typical and reasonable ore control systems were in place, but it is possible that the results could be improved with a closer attention to appropriate mining widths, minimizing them wherever possible to minimize dilution.

The availability and utilization statistics show that the mines are well equipped, but these statistics can sometimes be misleading depending on how the factors are calculated. Mine supervision sited equipment reliability as an impediment to achieving targets.

The processing plant appears to be well run as evidenced by a lack of spillage. The metallurgical team has a good understanding of the processing variable that determine how material will respond to the Don Diego processing facility.

1.15.2 Risks

Many risks exist which are common to most mining projects including operating and capital cost escalation, permitting and environmental compliance, unforeseen schedule delays, changes in regulatory requirements, ability to raise financing and metal price. Many of these ever-present risks can be mitigated with adequate engineering, planning and pro-active management. The most significant risks to this project and its continued development are related socio-economic and geo-political factors.

The Project also subject to site-specific risks, including the following:

● The activity that is prevalent throughout the region related to Cooperativas and artisanal miners may cause issues for access and for reasonable prospects of eventual economic extraction and may condemn or reduce resources and reserves in those areas. The Caballo Blanco mines are relatively isolated and not flanked by camps or towns. Attention to community relations has developed strong mutually beneficial working relationships with many of the local population and mining cooperatives which has created a sustained period of stable political and socio-economic cooperation. However, changes in this relationship and instability would pose a significant risk to continued operation of the mines in addition to risks related to tenure and ownership;

● The current political and socio-economic climate in Bolivia poses risks and uncertainties that could delay or even stop development as reported within the Fraser Institute Annual Report 2022 where Bolivia ranks very low in many non-technical metrics. Bolivia has been ranked consistently low for the past five years and ranks in the lower quartile on all metrics that gauge risk and uncertainty. It is difficult to gauge or qualify the level or extents of the risks however, all companies working in Bolivia must continue to be aware of the potential risks and develop mitigation strategies. A significant risk related to the Santacruz Bolivian mineral assets and in particular the mineral resources and mineral reserves is the significant artisanal activity that continues to exist. This activity is not only a socio-economic risk but also affects access to resources and reserves along with potential sterilization of mineral resources;

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● Geological interpretations may be subjective and may result in the location and extent of some of the mineralized structure although as the Caballo Blanco mines are comprised of well constrained veins, this risk is minimal;

● As vein thicknesses are narrow, resources may be sensitive to dilution although the relative high grades that exist at the Caballo Blanco mines are successful mitigating such risks to date;

● Varying resource classification methods and criteria may vary as more data is considered;

● There is no guarantee that further drilling will result in additional resources or increased classification;

● Further work may disprove previous models and therefore result in condemnation of targets and potential negative economic outcomes;

● Lower commodity prices could change the size and grade of the potential targets;

● Ability to replace mined reserves on an annual basis; and

● Maintenance of permitting.

As the mines continues to expand to depth, the following aspects of mine operations will be challenged:

● Worker travel time (reduced time at the face);

● Dewatering inflow quantities, infrastructure and costs; and

● Ventilation system needs and costs.

This will be particularly felt in Colquechaquita, as it is a shaft access mine with most of its remaining reserve at depth. The shaft will ultimately require extension to depth or trackless equipment will be required to haul the ore to the shaft bottom.

Supply and delivery of backfill was observed to be behind schedule which could have been caused by low development production, haulage bottlenecks, etc. The outcome, however, increases risk of hanging wall failure in the stopes and ore dilution from over-mucking; and

The process plant is not located on site, so ore transport costs can be significant and factors such as dilution have a greater impact on mineralized material value.

As is shown on Figure 1-14, the greatest risk to the economic results in this study is from changes to metal prices.

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1.15.3 Opportunities

Project opportunities include:

● The primary opportunity for the mine is to improve the grade to the mill by incorporating a mine dilution control program. As is typical with all narrow width mining, dilution is very sensitive to the mined widths of veins, which must be kept at minimum to accommodate equipment widths. Often, however, veins are over-mined to ensure complete recovery of the ore. This practice significantly increases dilution due to overbreak of the hangingwall and footwall;

● The mines would all benefit from more diamond drilling, particularly the Tres Amigos with is long strike length and little lateral development;

● A systematic exploration program could provide an excellent opportunity for successfully uncovering new discoveries;

● An increased understanding and derivation of alternative theories may result in further discovery and expansion for the Project;

● A hydrogeological study could help the operation to better characterize and understand water inflows, aiding design work and planning to reduce the impact of major seasonal inflows;

● Caballo Blanco group of mines is firmly established as a producing property but has yet to be consolidated into a fully integrated mine. Each mine is independently managed and operated and there are very few, if any, shared services. All three mines are on the same mineralized trend and consolidation is a possibility;

● Higher commodity prices could change size and grade of the potential targets;

● Potential for expansion and classification upgrade of resources as mining activities progress; and

● Caballo Blanco group of mines is firmly established as a producing property but has yet to be consolidated into a fully integrated mine. Each mine is independently managed and operated and there are very few, if any, shared services. All three mines are on the same mineralized trend and consolidation is a possibility.

1.15.4 Recommendations

To advance the Caballo Blanco mining operation and further evaluate the potential additional veins and increase resources thereby displacing depletion due to ongoing mining activities, the following is recommended:

● Regional exploration for identification of new veins;

● Incorporate structural interpretations to assist regional understanding;

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● QA/QC program review and improvement;

● Investigate source of anomalous lead values experienced with the field blanks;

● Incorporation of externally certified blanks and standards into the QA/QC program;

● Insertion of QA/QC samples throughout at a rate of 1 in 20 for blanks, standards and duplicates;

● Analysis of thickness and grade-thickness profiles for resource targeting and predictive dilution study;

● Hydrogeological study and modelling should be done to better understand water inflows and minimize their impact on production;

● Plan and execute a resource expansion program including drilling and underground sampling to fully identify and upgrade resources proximal to active mining areas for inclusion in the 2-year mine plan. This is important so that existing mine development can be fully utilized, and reductions in mine development requirements and rate of vertical descent realized;

● Resource drilling to justify more integrated mine development is also important for stable long-term production and growth. Moving the properties toward a more integrated operation can add value to the project;

● Extensive surface drilling for near surface targets along with underground drilling for resource delineation and extension;

● As is typical with all narrow width mining, dilution is very sensitive to the mined widths of veins. Good work is being done on identifying and qualifying specific stope dilution. Analysis and incorporation of findings into the stope planning and mine operations is an opportunity to increase project value; Often veins are over-mined to ensure complete recovery, but this practice comes with significantly increased dilution due to overbreak of the hangingwall and footwall. The operation should conduct a thorough test stoping experiment to ensure the most economic balance between incomplete recovery and excessive dilution;

● Underground operations that use three x 8 hour shifts typically lose much worker productivity due to excessive travel and break time over such a short shift. The current operation has an effective time of 5.5 hours per worker on an 8-hour shift. Consideration should be given to test a longer shift, say a schedule of 4 x 10 hours per week with three days off. With the same 2.5 hours of travel and break time, the effective time would increase to 7.5 hours per shift, resulting in an increase from 68% to 75% shift effectiveness or actual working time. The workers are apt to find that the longer days are harder, but that the three days off provide more rest on the balance of the week;

● The methodology for calculating equipment and utilization factors should be reviewed and adjusted if necessary. If equipment availability is, in fact, impeding production as was reported by supervision, it is not currently reflected in these statistics;

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● Devote attention to optimizing material transport. Transport of waste rock is critical to stope productivity and stability with the mining methods being used, thus its supply and transport are critical to mine production;

● The possibility for ore sorting or should be evaluated. As the mines each have a considerable haulage distance for run-of-mine ore, reducing the quantity to reduce haulage costs could be economically beneficial. On site crushing may be required to conduct sorting, however, offsetting or exceeding the savings it would provide to the trucking costs;

● At Don Diego Plant, the period analyzed from August 2020 to July 2021 exhibited more downtime than planned. Investigate opportunities to raise Process Plant throughput and reduce downtime to improve project economics;

● Metallurgical testwork to investigate opportunities to increase recoveries, through grinding, reagent dosage or newer flotation technologies;

● Investigate geo-metallurgical characteristics of the feed;

● The operation should continue to maintain diligent accounting centers to determine each mine's profitability and, if necessary, shift resources or assets to maximize profits; and

● Continue open communication and fair business practices with mining cooperatives and surrounding communities to minimize risk of asset subjugation.

These recommendations have not been costed, as they represent changes to current practices that can be funded by existing operating budgets.

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2 INTRODUCTION <br>2.1 Terms of Reference

JDS Energy & Mining Inc. (JDS) was commissioned by Santacruz Silver Mining Ltd. (Santacruz)to prepare a Technical Report in accordance with the Canadian Securities Administrators' National Instrument 43-101 and Form 43-101F1, collectively referred to as National Instrument (NI) 43-101 for the Caballo Blanco Project (CB or the Project) located in the state of Potosi, Bolivia.

Santacruz is based in Vancouver, British Columbia and is engaged in the operation, acquisition, exploration and development of mineral properties in Latin America, with a primary focus on silver and zinc. Santacruz was incorporated on January 24, 2011 under the laws of British Columbia and is listed on the TSX Venture Exchange under the trading symbol "SCZ".

On October 11, 2021, Santacruz entered into the Definitive Agreement with Glencore whereby Santacruz agreed to acquire a portfolio of Bolivian silver assets from Glencore, including the following: (a) a 45% interest in the Bolivar Mine and the Porco Mine, held through an unincorporated joint venture between Glencore's wholly-owned subsidiary Contrato de Asociación Sociedad Minera Illapa S.A. (Illapa) and COMIBOL, a Bolivian state-owned entity; (b) a 100% interest in the Sinchi Wayra S.A. (Sinchi Wayra) business, which includes the producing Caballo Blanco mining complex; (c) the Soracaya exploration project; and (d) the San Lucas ore sourcing and trading business.

On March 18, 2022, Santacruz completed this purchase, including Glencore's interest in the Caballo Blanco mining complex.

Santacruz thus owns 100% of the two Bolivian operating companies Illapa and Sinchi Wayra, which in turn own 45% of the Bolivar Mine, 45% of the Porroco Mine, and 100% of the Caballo Blanco mining complex.

Sinchi Wayra is the operating company for all three active mining operations, including the Caballo mining complex.

This report is the first declaration of resources and reserves, for the Bolivar base metals underground mining operation since its acquisition by Santacruz. The mine is fully operational at the time of this report's preparation. The effective date of both the resource and the reserve is January 1, 2023, which is approximately 18 months before the report date. Production data for the calendar year 2023 has been included in Section 24 Other Relevant Data and information to show the depletion and typical replenishment of resources and reserves over a calendar year.

2.2 Qualification
 Persons

The Qualified Persons (QPs) preparing this report are specialists in the fields of geology, exploration, mineral resource estimation, metallurgy and mining.

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None of the QPs or any associates employed in the preparation of this report has any beneficial interest in Santacruz and neither are any insiders, associates, or affiliates. The results of this report are not dependent upon any prior agreements concerning the conclusions to be reached, nor are there any undisclosed understandings concerning any future business dealings between Santacruz and the QPs. The QPs are being paid a fee for their work in accordance with normal professional consulting practice.

The following individuals, by virtue of their education, experience and professional association, are considered QPs as defined in the NI 43-101, and are members in good standing of appropriate professional institutions / associations. The QPs are responsible for the specific report sections as listed in Table 2-1.

**Table 2-1: QP Responsibilities**

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| &nbsp;&nbsp;**Qualified Person** | &nbsp;&nbsp;**Company** | &nbsp;&nbsp;**QP Responsibility / Role** | &nbsp;&nbsp;**Report Section(s)** |
| &nbsp;&nbsp;Richard Goodwin, P.Eng. | &nbsp;&nbsp;JDS | &nbsp;&nbsp;Author, Mining, Project Manager | &nbsp;&nbsp;1.1 to 1.2, 1.8 to 1.9, 1.11 to 1.15, 2 to 6.1, 12.1, 12.3, 12.5, 15, 16, 18 to 26, 28 |
| &nbsp;&nbsp;Garth Kirkham, P.Geo. | &nbsp;&nbsp;Kirkham Geosystems Inc. | &nbsp;&nbsp;Geology, QA/QC, Data Verification, Drilling, Resource Estimate | &nbsp;&nbsp;1.3 to 1.5, 1.7, 6.2, 7 to 11, 12.2, 9, 10, 11, 12.2, 14, 27 |
| &nbsp;&nbsp;Tad Crowie, P.Eng. | &nbsp;&nbsp;JDS | &nbsp;&nbsp;Metallurgy | &nbsp;&nbsp;1.6, 1.10, 12.4, 13, 17 |

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2.3 Site
 Visit

In accordance with National Instrument 43-101 guidelines, site visits are summarized in Table 2-2. Sinchi Wayra staff and management were cooperative and helpful during the course of each visit. Access to all requested information and physical sites was provided voluntarily.

**Table 2-2: QP Site Visits**

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| &nbsp;&nbsp;**Qualified Person** | &nbsp;&nbsp;**Company** | &nbsp;&nbsp;**Date** | &nbsp;&nbsp;**Description of Inspection** |
| &nbsp;&nbsp;Richard Goodwin, P.Eng. | &nbsp;&nbsp;JDS | &nbsp;&nbsp;January 30-31, 2023 | &nbsp;&nbsp;Mr. Goodwin met with technical and operating staff and toured the mines (Colquechaquita, Tres Amigos, and Reserva) with SW personnel and management. |
| &nbsp;&nbsp;Garth Kirkham, P. Geo. | &nbsp;&nbsp;Kirkham Geosystems Inc. | &nbsp;&nbsp;August 10-13, 2021<br> March 15-30, 2023 | &nbsp;&nbsp;Collquechaquita, Reserva and Tres Amigos mines and Caballo Blanco Project sites; including select working areas and faces underground, Potosi professional offices, Don Diego Mill Complex, sample storage facilities, La Paz company offices, discussions with site and company personnel. |
| &nbsp;&nbsp;Tad Crowie, P.Eng. | &nbsp;&nbsp;JDS | &nbsp;&nbsp;August 10-13, 2021 | &nbsp;&nbsp;Collquechaquita, Reserva and Tres Amigos mines and Caballo Blanco Project sites; including select working areas and faces underground, Potosi professional offices, Don Diego Mill Complex, sample storage facilities, La Paz company offices, discussions with site and company personnel. |

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2.4 Units,
 Currency and Rounding

The units of measure used in this report are as per the International System of Units (SI) or metric, except for Imperial units that are commonly used in industry (e.g., ounces (oz.) and pounds (lb.) for the mass of precious and base metals).

All dollar figures quoted in this report refer to United States dollars (US$ or $) unless otherwise noted.

Frequently used abbreviations and acronyms can be found in Section 28. This report includes technical information that required subsequent calculations to derive subtotals, totals and weighted averages. Such calculations inherently involve a degree of rounding and consequently introduce a margin of error. Where these occur, the QPs do not consider them to be material.

This report may include technical information that requires subsequent calculations to derive sub-totals, totals and weighted averages. Such calculations inherently involve a degree of rounding and consequently introduce a margin of error. Where these occur, JDS does not consider them to be material.

2.5 Sources
 of Information

This report is based on information collected by the QPs during their site visits performed on August 12, 2021 (Kirkham and Crowie), on February 1, 20323 (Goodwin) and on additional information provided by Glencore and Sinchi Wayra throughout the course of the QPs investigations. Other information was obtained from the public domain. The QPs conducted adequate verification of the information and take responsibility for the information provided by Santacruz.

2.6 List
 Of Previous Relevant Technical Reports

There has been one technical report published which was the subject of the Caballo Blanco Project entitled "NI 43-101 Technical Report, Caballo Blanco, Potosi, Bolivia" dated December 21, 2021. This report was produced by JDS on behalf of Santacruz and authored by Kirkham and Crowie who are also QPs for this Technical Report.

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3 RELIANCE ON OTHER EXPERTS

The QP's have relied on information provided by the Issuer on claims, ownership, property agreements, royalties, environmental liabilities, and permits as described in Section 4. The information appears reasonable but has not independently verified beyond the information that is publicly available.

The QPs have relied upon a legal opinion provided by Enrique Barrios of the firm Dentons Guevara & Gutierrez S.C., located in La Paz, Bolivia, in the documents "Local Counsel Legal Opinion on the Porco Mine", "Local Counsel Legal Opinion on the Caballo Blanco Project", "Local Counsel Legal Opinion on Empresa Minera San Lucas S.A.", "Local Counsel Legal Opinion on Sociedad Minero Metalúrgica Reserva Ltda.", "Local Counsel Legal Opinion on Sociedad Minera Illapa S.A.", "Local Counsel Legal Opinion on Sinchi Wayra S.A.", and "Local Counsel Legal Opinion on the Illapa Joint Venture", all dated March 18, 2022 with regards to the Property's location, title, and environmental licenses described in Section 4 of this report.

The QPs have relied on information provided by Arturo Prestamo of Santacruz for the information contained in Section 20 and for the smelter agreements used for the determination of the resources, reserves, and economic model.

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4 PROPERTY DESCRIPTION AND LOCATION <br>4.1 Location

The Caballo Blanco Project consists of three separate mines and one process plant operating as one to produce Zinc and Lead concentrates. An Important part of the supporting infrastructure includes two off-site power plants that produce supplemental electric power to the mines. The mines are relatively close together and located as follows:

Reserva and Tres Amigos Mines are located 31 km southeast of the city of Potosi, in the Canton Concepcion of the first section of the Tomas Frias Province of the Department of Potosi, at an average elevation of 4,536 masl, at UTM coordinates WGS-84: 218764E and 7814967N.

Colquechaquita Mine is located 30 km southeast of the city of Potosi, in the Canton Concepcion of the first section of the Tomas Frias Province of the Department of Potosi, at an average elevation of 4,520 masl, at UTM coordinates WGS-84: 219915E and 7819380N.

The Don Diego Process plant is located about 23 km Northeast of the city of Potosi, in the Don Diego Canton, Municipality of Chaqui, Cornelio Saavedra Province, of the Department of Potosi. At an elevation of 3,550 masl at UTM coordinates WGS-84: 228933E and 7841150N.

There is a 60 km drive from the mines to the Don Diego Processing plant.

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**Figure 4-1: Location Map**

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**Figure 4-2: Project Location Map**

4.2 Property
 Description and Tenure

Caballo Blanco brings together, in a single production unit, three independently operated underground mines, a single and remotely located Processing plant and two power plants. Each mine has independent infrastructure to support its operations, as well as independent site management:

● Reserva Mine and Tres Amigos Mine are grouped together at times based on their common access route from the main paved highway; and

● Colquechaquita Mine.

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All mining activity is directed exclusively to the exploration and production of zinc, lead and silver. The Don Diego Processing plant and Chilimocko tailing storage facility with a capacity of 1,100 t/d takes production from all three mines as well as third party toll feed. Haulage distance from the mines to Don Diego process plant and train station is approximately 60 km. Two independent power plants, Yocalla which is a Hydroelectric plant and Aroifilia which is Natural gas driven, provide about 50% of the power to the mines. Each mine is also serviced with power from the Bolivian National Grid.

Off-take Agreements with Glencore International are in place for the Bolivar Mine production: Contract No. 180-03-10309-P and Contract No. 062-03-10276-P, including all its addendums and amendments. These Off-Take Agreements are in effect through the life of the mine.

On March 18, 2022 Santacruz acquired 100% of the shares of Illapa, as more particularly described in Section 2. There was a 1.5% NSR royalty to Glencore, provided as part of the purchase price that Santacruz paid pursuant to the Definitive Agreement, however on March 28, 2024, Santacruz and Glencore entered into a binding term sheet (the Term Sheet) which, among other things, terminated the 1.5% NSR royalty to Glencore. The only known existing agreements that will bind Santacruz is that of the Illapa JV. Environmental liabilities observed consist mostly of historic tailing storage facilities at Don Diego and mine workings at each mine site. Recent audits verify environmental legal compliance and associated closure plan costing.

**Table 4-1: Mineral Tenures for Reserva and Tres Amigos Mines**

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| **Area** | **Ates** |
| &nbsp;&nbsp;Reserva – Tres Amigos<br> (red)<br> Hectáreas: 3,498 | Reserva, Reservita, Elfy Cristina, Catalina, Tres Amigos, Sucesivas Tres Amigos, Demasías Tres Amigos, Pablito, TNT1, TNT2, TNT4, TNT5, TNT6, TNT 10 |
| &nbsp;&nbsp;Contrato Individual<br> (Hectár)<br> Hectáreas:225 | TNT 11 |
| &nbsp;&nbsp;Contrato Individual<br> (purple)<br> Hectáreas: 825 | TNT 3 |
| &nbsp;&nbsp;Contrato Individual<br> (green)<br> Hectáreas: 30 | Tio Dorado |

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Source: Glencore (2021)

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**Figure 4-3: Colquechaquita, Reserva and Tres Amigos Mineral Tenure**

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Reserva and Tres Amigos Mines are located 31 km southeast of the city of Potosi, in the Canton Concepcion of the first section of the Tomas Frias Province of the Department of Potosi, at an average elevation of 4,536 masl, at UTM coordinates WGS-84: 218764E and 7814967N 1,050 m.

**Table 4-2: Mineral Tenures for Colquechaquita Mine**

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| **Area** | **Ates** |
| &nbsp;&nbsp;Colquechaquita<br> (green)<br> Hectáreas: 115 | &nbsp;&nbsp;Colquechaquita, Colquechaquita II<br> Ates = Empresa Mineral San Lucas |
| &nbsp;&nbsp;Sofia<br> (purple)<br> Hectáreas: 55 | &nbsp;&nbsp;Sofia, Sucesivas Sofia, Demasias Sofia<br> Ates = Empresa Mineral San Lucas |
| &nbsp;&nbsp;Dinosaurio<br> (white)<br> Hectáreas: 52 | &nbsp;&nbsp;Dinosaurio, Carmelita<br> Ates = Sinchi Wayra |
| &nbsp;&nbsp;Contrato Individual<br> (white)<br> Hectáreas: 3 | &nbsp;&nbsp;Marcela<br> Ates = Sinchi Wayra |

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Source: Glencore (2023)

Colquechaquita Mine is located 30 km southeast of the city of Potosi, in the Canton Concepcion of the first section of the Tomas Frias Province of the Department of Potosi, at an average elevation of 4,520 masl, at UTM coordinates WGS-84: 219915E and 7819380N.

4.3 Environmental,
 Permitting and Social Relations

Santacruz Silver continues to manage its operations using a sophisticated management approach to sustainability consistent international standards. From the 2022 Sustainability Report:

*We are: "A leading Business Group in the mining industry in Bolivia, sustainable, committed to the safety, health, and well-being of our Human Capital, and the preservation of the environment, with an entrepreneurial spirit, openness to change and innovation, and we strive to generate value and positive impact for society as a whole."*

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This integrative approach is evident in the Caballo Blanco operation. Areas addressed and monitored include:

● Employees;

● Occupational Health & Safety;

● Governance and Compliance;

● Stakeholder Engagement;

● Contributing to Community;

● Environment; and

● Product Stewardship & Material Handling.

4.3.1 Regulatory
 Framework

Bolivia's central statute governing environment protection is Law 1333, of 27 April 1992; specific regulations for which are set out in Regulation of Environmental Prevention and Control, December 8, 1995. Special Decree No. 24782 of 31 July 1997 sets out specific environmental requirements related to mining. Breaching environmental obligations can result in criminal liability under the Bolivian Constitution, in addition to other administrative penalties (such as a loss of mining rights).

An Environmental Impact Assessment (EIA) would be required for a project the scale of a mining and processing operation. As well, public consultation with any potentially affected indigenous communities and local populations may also be necessary. Granting of the operating permit allows the proponent to obtain the appropriate operating licenses, which must be updated with any relevant changes during the life of the operation.

Specialized environmental authorities control compliance. As required under the license, any impact on the environment must be reported to these authorities. Remediation measures and rehabilitation projects are compulsory, and financial reserve funds are maintained annually to cover closure costs. A final closing study on the effect on the environment will also be required, and restitution met.

Sinchi Wayra was granted the Mining Identification Number 02-0002-03, by the SENARECOM (National Service of Control and Registration of Minerals and Metals Commercialization, for its acronym in Spanish), and its certificate expires on July 3, 2022.

<u>Don Diego Concentrator Plant:</u>

● Environmental License: N° 050302-02-DAA-003/97, granted on July 31, 1997. Last update: February 15, 2011 (N° 050302-02-DAA-003/11).

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<u>Colquechaquita Mine</u>

● Environmental license: N°050101-02-DAA-131/97, granted on July 31, 1997. Last update: February 07, 2011 (N° 050101- 02-DAA-131/11); and

● The General Direction of War Logistics and Material issued a Registration Certificate under number 0053/2021, for the use of explosives and accessories in mining activities. Expiry date: August 26, 2023.

<u>Contrato de Asociación Sociedad Minera Reserva Ltda.´s (Reserva – Tres Amigos Mine)</u> 

Reserva was granted the Mining Identification Number 05-0020-04, by the National Service of Control and Registration of Minerals and Metals Commercialization (SENARECOM), and its certificate expires on October 15, 2022:

● Environmental license N° 050101-02-DAA-561/11, granted on June 03, 2011. Last update: May 04, 2015;

● The General Direction of War Logistics and Material issued a Registration Certificate under number 753/2021(Tres Amigos Mine) Expiry date: June 29, 2023 and 210/2021 (Reserva Mine) Expiry date: August 26, 2023, for the use of explosives and accessories in mining activities; and

● The General Direction of Controlled Substances issued a Certificate of Registration with Number 9000-09240-073, Fifth Category, Mining. Registering Maria Elsa Reyes Cors as Legal Representative and titleholder, with expiration date September 24, 2022.

4.3.2 Health,
 Safety and Economic Development

The Caballo Blanco business is spread amongst various locations, and each operation has its own effect on the surrounding communities. Linking the properties is a transport network to deliver mineralized plant feed that extends approximately 60km. Each operating unit is managed independently, with individual teams responsible for planning, safety and environmental management. Most employees live in the communities surrounding the city of Potosí. Consequently, at Caballo Blanco a large area is monitored including 13 small communities which include a population of more than 500 families or around 2,500 community members. Several mining cooperatives are also involved.

As per the Santacruz Sustainability program:

● Employees - Establishing relationships based on trust and promoting a culture of prevention and safe environments. Quality employment opportunities are offered with non-discriminatory hiring. In 2022, Bolívar employed total of 370 employees and 314 contractors, 7% of whom were women. Given the labor benefits offered, Bolívar has a low turnover rate. 71% of employees at Bolívar are unionized. Santacruz guarantees freedom of association and the right to collective bargaining;

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● Occupational Health & Safety - Realizing the inherent personal risks of mining, and the incremental increase in incident rates over the last three years, emphasis continued in 2022 in program development and training in proper work practices at Bolívar;

● Health – Medical care is provided to employees through third party health insurers at Santa Rita Hospital. Regular Occupational Health examinations are given to all workers and treatment provided when prescribed. In 2022, occupational health factors at Bolívar, continue to be monitored after baseline date indicated most parameters fell within acceptable limits;

● Community - The neighboring communities house workers, contractors, and their families. Most of them reside in Antequera, which lies adjacent to the mine. In 2022, USD 660,000 was invested in the development of neighboring communities, benefitting approximately 1,900 families;

● Education - One of the schools in Antequera continues to be financed by Santacruz and serves 500 students. The program includes funding of teachers', directors' and supporting personnel's wages, supplies and equipment, payment of services and school infrastructure. 29 scholarships were awarded for study abroad in the capital cities. These programs not only help the local communities, but they provide Caballo Blanco with trained professionals. Public education is also supported through extracurricular sports and cultural activities;

● Economic Development - Bolívar offers a professional training workshop for women who live in the mining camp and that make up the Housewives' Committee. Fire extinguisher training was provided for 100 people this year and five houses were renovated as well as other help to nearly 100 families in two communities;

● Environment - Reforestation continued throughout the Queaqueani tailings dam area, and a water diversion project in Antequera focused on improving farming performance that benefited 200 people; and

● Local needs - Cultural activities were sponsored including a safety management contest, sponsorship of trips for the Sebastián Pagador graduates, cooking courses for housewives, support for the elderly in purchasing groceries, and the anniversary celebration of Antequera.

4.3.3 Environmental
 Management

Each mine and plant have their own environmental management teams who are responsible for compliance with corporate standards and their environmental license.

4.3.3.1 Water
 Management

Given the remote location of the process plant, which is usually the largest water consumer, each mine treats and discharges excess water to the environment. These discharges are regulated for quality and quantity by the environmental license. End uses include consumption by neighboring communities and agricultural/industrial use by llama ranchers and mining cooperatives downstream. Caballo Blanco supplies two thousand cubic meters of treated water per year to the local sanitary administration (AAPOS) to support industrial activities and discharges the remaining treated water to the Jayaquila and Mocaña rivers. Caballo Blanco is able to meet discharge requirements with aeration, pH adjustment and clarification by settling.

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Don Diego process plant maximizes the recirculation of water from its tailing storage facility and draws makeup water from permitted surface sources.

4.3.3.2 Tailings
 Management

The Chilimocko tailings storage facility at Don Diego is inspected regularly and maintained to the standards set out by the Canadian Dam Association guidelines. The dam is under the supervision of engineers from AMEC (now Wood Engineering) and recently an external audit was conducted by Knight Piésold Consulting. The dam is of downstream construction. In 2019, the monitoring of the Chilimocko Tailings Dam at Don Diego was updated to keep aligned with new standards.

The company also monitors and manages 4 inactive tailings facilities (1, 2, 3 & Yanakasa) on site.

4.3.3.3 Waste
 Management

Although mine waste rock is preferentially stored underground or used as backfill, each of the mines had a permitted and designed waster rock storage area designed for stability and the prevention of acid rock drainage and metal leaching. Sludge from the water treatment plants is deposited in lined ponds adjacent to the treatment plants. Given the mines' proximity to the City of Potosi, Domestic and Medical waste disposal are managed through the Municipal Garbage Collection Service. Industrial waste such as scrap metal, used Oil, tires, etc. is temporarily stored at each mining unit and collected by companies specialized in recycling.

4.3.4 Community
 Interaction

A total of US$332,000 was invested in community support in the areas of education, economic development, environment, local needs, and health and wellbeing. Caballo Blanco has a team who manage the community relations and the aid that is provided.

Although the response to COVID-19 has dominated the community support in 2012, programs active and established in 2019 continued. Some of them included:

4.3.4.1 Educational
 Programs

● Scholarship program for outstanding students that graduate from the Ollerías school at the elementary, high school and university levels;

● Sponsoring and support of school breakfast at community schools;

● Hiring of full-time computer teacher for schools in Jayaquilla and Don Diego;

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● Support the School Board of Don Diego by paying the salaries of service staff and teachers; and

● Providing school transportation for students between the scattered houses in the communities of Pucara, Negro Tambo, Chaquilla, Ollerias, Jayaquilla, Condoriri, Huanuni, Cachitambo, La Esquina and Calamarca.

4.3.4.2 Economic
 Development

● At Don Diego, implementing the potential identification and promotion program;

● Supporting textile ventures led by ladies from nearby communities;

● Provide support by sponsoring projects of the Community of Chilimocko, in coordination with its authorities and its annual management plan;

● As part of the area's economic diversity, providing support by completely repairing the agricultural tractor and purchasing the plowing equipment and the ridger for sowing; and

● "Garment Making Enterprise" project, we incorporated improvements to the electrical installation and donated inputs for the dressmaking equipment.

4.3.4.3 Environment

● Supporting the maintenance of the area's fauna and economic diversity, by donating 400 quintals of food supplement for llama cria and females; and

● Managed support works in residential restroom infrastructure and electric power in the communities of Ollerias and Condoriri.

4.3.4.4 Local
 Needs

● Supported the improvement of the houses of the community of Huanuni;

● Improved the park, as a space of recreation for the community, building the carousel, sidewalks, planters, and improving the entrances; and

● Sponsored social and cultural activities in several communities.

4.3.4.5 Health
 and Well-Being

● Fostered well-being by promoting, supporting and sponsoring various sports events; and

● Supported sporting activities through the construction of grandstands and maintenance of the artificial turf field.

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5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY <br>5.1 Accessibility

The Mines and Process plant have easy access to Potosi City which is a large industrial, mining, and population center. Road access to the Reserva mine from Potosi is 23 km south via the Potosi-Tarija interdepartmental paved highway towards Kuchu Ingenio, then 8 km East on gravel road. Road access to the Colquechaquita mine from Potosi is 16 km south via the Potosi-Tarija interdepartmental paved highway towards Kuchu Ingenio, for approximately 16 km, then 11 km East on gravel access road.

Don Diego plant also has site access to a rail spur for direct transport of concentrates to the preferred Port of Antofagasta Chile, or alternative ports of Arica, Chile, and Matarani, Peru.

The mines have telephone and broadband radio communications.

**Figure 5-1: Location of Caballo Blanco Mines and Don Diego Plant**

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5.2 Climate
 and Physiography

The predominant landscape in the mining areas is mountainous topography, hills and streams with typical flora and fauna. The area in which the mining concessions lie is the Bolivian physiographic province A2 Cordillera Central Oriental, elevation vary from 5,008 masl. (Cerro Jatun Condori) to 4,200 masl (Estancia La Esquina) with a wavy mountain geomorphology. The mines are located in the Eastern Cordillera on the line that follows the Cordillera Kari, with outcrops of Tertiary age igneous rock, and sedimentary rocks, which do not support appreciable vegetative cover.

Generally, the region is semi-arid with rainy season beginning in earnest between the months of October and March, and the dry season from April to September. However, precipitation events are common throughout June, July and August as well.

Weather stations at the mines showed 2019 temperatures ranging from -7 to 19.5<sup>o</sup>C. Total precipitation was 50 centimeters (cm).

The project lies within the Altiplano, an extensive volcanic plateau where regional flora includes dry plants such as queña, or quenua, which is a dwarf tree found at higher elevations. In addition, abundant yareta is present which is a species of moss that grows on the ubiquitous rocky surfaces.

Faura such as llamas and alpaca are the most distinctive animal populations in the area and are mostly domesticated with wild populations being fairly rare. Another similar animal, the vicuna, exists in the region however it is thought to be on the verge of extinction. In the air, condors inhabit the remote caves of the high peaks, flying over the plateaus.

5.3 Infrastructure

Proximity to the city of Potosi, allows use of the established system of paved highways to provide access by truck to any services, or supplies required for mine operations. Labor supply is also nearby in Potosi. The secondary access roads to the mines off the main pave highway are gravel and serviceable but not well maintained.

Electric power to the Mines is supplied via the State grid (SEPSA) with supplementary power provided by two generating plants owned and operated by Sinchi Wayra. The Yocalla plant runs on hydro power and the Aroifilia on natural gas. Currently the mines buy approximately 50% of their power from the grid (SEPSA) and generate the remainder. Power is provided on separate lines from each provider and distributed with the mine's distribution system to regulate power to each mine. Both Sinchi Wayra plants are older and in need of capital investment to remain viable.

Each of the mines produces enough water to treat and reuse for industrial use on site. Excess treated water is discharged to the environment at regulated quality standards. Annually, a total of 2.5 Mm<sup>3</sup> of mine water is treated and 2.4 Mm<sup>3</sup> discharged from two water treatment plants.

The Tailings storage facility is located at the Don Diego process plant.

**Figure 5-2: Caballo Blanco Power Generation**

Source: Glencore (2021)

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6 HISTORY <br>6.1 Management and Ownership

Caballo Blanco is a result of business consolidation over time.

The Don Diego Plant began processing in 1977 and was originally acquired by the precursor of Sinchi Wayra S.A. (Sinchi Wayra); Compania Minera del Sur (COMSUR) in 1976. COMSUR purchased the specific mining interests from small private owners and operators loosely organized into cooperativas. The Colquechaquita mine began operating in 1977, passing to COMSUR in 1991, later changing its name to SINCHI WAYRA S.A. Sinchi Wayra took over the Reserva/TresAmigos mines in 2010. Tres Amigos obtained its environmental licenses to operate in 2005 by Sociedad Minero Metalúrgica Reserva Ltda. for its two sections of Exploitation Reserva and Tres Amigos, with a small-scale mining operation. Glencore became involved in 2005 with the purchase of COMSUR and effecting the name change to Sinchi Wayra.

Sinchi Wayra S.A. owns and operates all facets of the Caballo Blanco business; The Don Diego processing plant and Colquechaquita mine since their acquisition by Glencore in 2005, and Reserva and Tres Amigos mines from their acquisition in 2010. Glencore immediately began to develop the deposits with a higher degree of mechanization. The Power plants, Aroifilla thermal power plant, and the Yocalla hydro-electric plant which provide supplementary electric power are also owned and operated by Sinchi Wayra and are included under the management of Caballo Blanco Project.

On October 11, 2021, Santacruz entered into the Definitive Agreement with Glencore whereby Santacruz agreed to acquire a portfolio of Bolivian silver assets from Glencore. The Assets include: (a) Glencore's 45% interest in the Bolivar Mine and the Porco Mine, held through an unincorporated joint venture between Glencore's wholly-owned subsidiary Contrato de Asociación Sociedad Minera Illapa S.A. (Illapa) and COMIBOL, a Bolivian state-owned entity; (b) a 100% interest in the Sinchi Wayra business, which includes the producing Caballo Blanco mining complex; (c) the Soracaya exploration project; and (d) the San Lucas ore sourcing and trading business (the Assets).

On March 18, 2022, Santacruz completed this purchase, including Glencore's interest in the Caballo Blanco mining complex. The Caballo Blanco mining complex has continued to operate since that date under the management of Santacruz.

On May 10, 2023, Santacruz and Glencore entered into a framework agreement to amend certain terms of the transaction documents pertaining to the acquisition of the Assets. On March 28, 2024, Santacruz and Glencore entered into the binding Term Sheet which amends the terms of certain deferred consideration and ancillary documents pertaining to the acquisition of the Assets.

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**Figure 6-1: Project History**

Source: Glencore (2021)

6.2 Historical
 Resource Estimates

Glencore's Resources & Reserves report as of December 31, 2020 disclosed Bolivar, Porco and Caballo Blanco mineral resource statements as well as mineral reserve estimates as of December 31, 2020 Given the source of the estimates, Santacruz considers them reliable and relevant for the further development of the Project; and accordingly, they should be relied upon only as a historical resource and reserve estimate of Glencore, which pre-dates Santacruz's agreement to acquire the Assets however, the Company is not treating the historical estimates as current Mineral Resources or Mineral Reserves.

A "Qualified Person" as per NI 43-101 has not done sufficient work to classify the historical estimate as current Mineral Resources or Mineral Reserves and Santacruz is not treating the historical estimate as current Mineral Resources or Mineral Reserves. Further drilling and resource modelling would be required to upgrade or verify these historical estimates as current mineral resources or reserves for the respective assets.

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The resources have been reported for Caballo Blanco as of December 31, 2020 at a Zinc Equivalent (ZnEq) cut-off grade 2% as follows in Table 6-1.

**Table 6-1: Historic Mineral Resource Estimate**

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| &nbsp;&nbsp;&nbsp;**Category** | **Tonnes** | **Zinc** | **Lead** | **Silver** |
| &nbsp;&nbsp;&nbsp;**Category** | **(Mt)** | **(%)** | **(%)** | **(g/t)** |
| &nbsp;&nbsp;&nbsp;Measured Mineral Resources | 0.9 | 13.68 | 3.66 | 364 |
| &nbsp;&nbsp;&nbsp;Indicated Mineral Resources | 0.6 | 13.08 | 3.17 | 317 |
| &nbsp;&nbsp;&nbsp;Measured + Indicated Mineral Resources | 1.6 | 13.44 | 3.47 | 346 |
| &nbsp;&nbsp;&nbsp;Inferred Mineral Resources | 2.3 | 12.21 | 2.37 | 241 |

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Notes:

1) The Mineral Resources have been calculated in accordance with definitions in accordance with the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), the 2016 edition of the South African Code for Reporting of Mineral Resources and Mineral Reserves (SAMREC) and the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves (2014).

2) The ZnEq = (Zn% + (Pb% \* 0.50) + (Ag g/t \* 0.0268)).

3) The Mineral Resources have been calculated in accordance with definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum on August 20, 2000. Employees of Glencore have prepared these calculations.

4) Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not account for a resource's mineability, selectivity, mining loss, or dilution.

5) An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

6) All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

7) Reported in-situ Mineral Resources do not consider mineral availability by underground mining methods.

8) Historical Mineral Reserves and Resources are inclusive of Mineral Reserves shown at 100% ownership.

Source: Glencore (2020)

For comparison, Table 6-2 shows the Measured and Indicated Resources for 2018 and 2019, respectively which reflects mining depletion and changes in classification due to additional drilling and sampling during operations. The Indicated and Inferred Resources are reported at a 2% ZnEq cut-off grade.

**Table 6-2: Historic Mineral Resource Estimate for 2018 and 2019**

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|  | **Measured** | **Measured** | **Indicated** | **Indicated** | **Total** | **Total** |
|  | **2019** | **2018** | **2019** | **2018** | **2019** | **2018** |
| Ore (Mt) | 0.9 | 0.9 | 0.6 | 0.7 | 1.5 | 1.6 |
| Zinc (%) | 13.7 | 13.2 | 13 | 13 | 13.4 | 13.1 |
| Lead (%) | 3.8 | 3.2 | 3.2 | 2.6 | 3.6 | 2.9 |
| Silver (g/t) | 382 | 301 | 320 | 252 | 357 | 279 |

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Source: Glencore (2020)

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Glencore reports resources and reserves in accordance with the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), the 2016 edition of the South African Code for Reporting of Mineral Resources and Mineral Reserves (SAMREC) and the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves (2014 edition). The term 'Ore Reserves', as defined in Clause 28 of the JORC Code, has the same meaning as 'Mineral Reserves' as defined in the CIM Definition Standards for Mineral Resources and Mineral Reserves. All tonnage information has been rounded to reflect the relative uncertainty in the estimates; there may therefore be small differences in the totals. The Measured and Indicated resources are reported inclusive of those resources modified to produce reserves, unless otherwise noted. Commodity prices and exchange rates used to establish the economic viability of reserves are based on long-term forecasts applied at the time the reserve was estimated.

The parameters and methodology for each step of the resource estimation and manipulation were reviewed by the Qualified Person and are detailed as follows:

● Sixteen separate veins were modelled in the resource estimate, form sets of sets of sub-parallel, north striking and steeply dipping mineralized zones which are extending from between 70 m to 950 m and depths of between 50 m and 400 m and still open;

**Figure 6-2: Veins and Structures for Caballo Blanco**

Source: Glencore (2020)

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● A total of 104 drillholes and 14,837 channel samples were used in the estimations into 6,227,265 m<sup>3</sup> of vein domain solids;

● The estimate was carried out using separate block models for each of the veins constrained by 3D wireframes of the individual mineralized zones. The block model is comprised of an array of blocks measuring 5 m x 5 m x 5 m rotated 47<sup>o</sup> from North, which are sub-blocked to 5 m x 1.25 m x 1.25 m, with grades for Ag, Pb and Zn interpolated using either Inverse Distance Weighting or Ordinary Kriging depending on the data density within each of the veins. Zinc equivalent values were subsequently calculated from the interpolated block grades;

● Bulk densities at Caballo Blanco were based on density sample interval measurements taken by Glencore while SG estimates are based on a multilinear regression formula as follows:

Density = 2.5253757+0.0176\*Zn%+0.05611\*Pb%+0.04176\*Fe%

● Silver, zinc and lead composite values have been capped in order to remove the effects of potential overestimation due to statistical outliers. The threshold chosen was dependent upon the individual vein as shown in Table 6-3;

**Table 6-3: Composite Statistics and Cut-off Grade Thresholds**

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| **Domain** | **Vein** | &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**Ag** |
| **Domain** | **Vein** | **Max** | **Cap.** | **Max** | **Cap.** | **Max** | **Cap.** |
| 1000 | Rosario | 47 | 45 | 49 | 11 | 4404 | 721 |
| 1001 | Wendy | 52 | 39 | 44 | 12 | 1813 | 631 |
| 1002 | Wendy Techo | 47 | 44 | 35 | 11 | 2287 | 715 |
| 1010 | Viviana | 51 | 48 | 44 | 15 | 5140 | 1380 |
| 1011 | Karina | 36 | 27 | 52 | 21 | 6054 | 1634 |
| 1012 | Camila | 40 | 20 | 29 | 17 | 3400 | 1600 |
| 1020 | Catalina | 64 | 32 | 62 | 32 | 7520 | 3411 |
| 1021 | Ramo Catalina | 52 | 42 | 49 | 33 | 7093 | 3739 |
| 1022 | Daniela | 58 | 40 | 66 | 32 | 13440 | 4403 |
| 1023 | Milagros | 52 | 22 | 65 | 19 | 5423 | 1890 |
| 1024 | Central | 44 | 36 | 42 | 18 | 10399 | 2330 |
| 1025 | Central Este | 40 | 33 | 52 | 25 | 4484 | 2450 |
| 1026 | Ramo Central II | 40 | 40 | 69 | 21 | 5464 | 1750 |
| 1027 | Crucera | 37 | 31 | 47 | 25 | 2534 | 1400 |
| 1028 | Ramo Central Este | 36 | 33 | 26 | 25 | 2600 | 2450 |
| 1029 | Ramo Milagros | 28 | 22 | 23 | 19 | 2100 | 1890 |

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Source: Glencore (2020)

● The interpolation was carried out in three passes using multiples of the ellipse ranges as described in Table 6-4:

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**Table 6-4: Estimation Parameters**

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| **Vein** | **Range 1 (m)** | **Range 2 (m)** | **Range 3 (m)** | **Min # of Samples** | **Max # Samples** |
| 1000 | 69 | 41 | 19 | 5 | 25 |
| 1001 | 43 | 58 | 19 | 5 | 40 |
| 1002 | 45 | 27 | 19 | 5 | 35 |
| 1010 | 69 | 51 | 25 | 4 | 22 |
| 1011 | 51 | 41 | 35 | 5 | 23 |
| 1012 | 41 | 52 | 21 | 4 | 26 |
| 1020 | 38 | 39 | 20 | 5 | 24 |
| 1021 | 42 | 45 | 21 | 5 | 20 |
| 1022 | 58 | 39 | 22 | 4 | 20 |
| 1023 | 31 | 29 | 20 | 4 | 35 |
| 1024 | 34 | 36 | 20 | 4 | 20 |
| 1025 | 33 | 30 | 26 | 5 | 20 |
| 1026 | 32 | 31 | 20 | 4 | 20 |
| 1027 | 35 | 33 | 20 | 4 | 20 |
| 1028 | 33 | 30 | 26 | 5 | 20 |
| 1029 | 31 | 29 | 20 | 5 | 20 |

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Source: Glencore (2020)

● The mineralized wire frames were defined using a combination of geological constraints and grade boundaries with no minimum mining thickness applied;

● For all veins, the resource classification criteria are determined according to the variography, and it has been established using the methodology as follows:

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| Measured Resources: variogram range of 2/3 of the variogram range with a minimum of 5 samples being informed per block; |
| Indicated resources: to the full variogram range with a minimum of 4 samples being informed per block; |
| Inferred resources: extended to twice the variogram range with a minimum of 2 samples being informed per block; and |
| However, an interpreted boundary is the final determination of indicated and inferred resources in order to remove outlier blocks and the "spotted dog" effect. |

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Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Inferred Resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be classified as Mineral Reserves. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

6.3 Production
 2018 to 2022

The historical production generated from the Caballo Blanco Mines from the period 2018 to 2022 is shown in Table 6-5.

**Table 6-5: Production from the Caballo Blanco Mines, 2018 to 2022**

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| **Year** | **Tonnes** | **Zn%** | **Pb%** | **Ag g/t** |
| 2018 | 233175 | 6.38 | 1.86 | 198 |
| 2019 | 249416 | 6.78 | 1.90 | 214 |
| 2020 | 199674 | 6.83 | 2.13 | 245 |
| 2021 | 242876 | 6.84 | 1.90 | 220 |
| 2022 | 275263 | 6.55 | 1.55 | 178 |

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7 GEOLOGICAL SETTING AND MINERALIZATION <br>7.1 Introduction

The geological setting and framework detailed herein, is primarily referenced from the definitive publications for Bolivian geology such as Redwood (2021) and Arce-Burgoa (2009).

7.2 Geological
 Tectonic Framework

The geologic-tectonic framework of Bolivia can be divided into six physiographic provinces. From east to west (Figure 7-1), these are the Precambrian Shield, the Chaco-Beni Plains, the Sub Andean zone, the Eastern Cordillera (or Cordillera Oriental), the Altiplano, and the Western Cordillera (or Cordillera Occidental). The latter four provinces are elements of the Mesozoic-Cenozoic Andean orogen in Bolivia (Arce-Burgoa, 2002, 2007), which hosts an abundance of mineral deposits (Figure 7-2). The landward Precambrian Shield, exposed far to the east of the Andes, represents an area of great mineral potential, but has had limited exploration.

**Figure 7-1: Regional Geology Setting**

Source: Arce-Burgoa (2009)

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**Figure 7-2: Regional Geology Setting with Deposit Types**

Source: Arce-Burgoa (2009)

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Rocks of the Precambrian Shield in easternmost Bolivia have commonly been hypothesized to represent the southwestern part of the Amazon craton, covering an area of approximately 200,000 km<sup>2</sup>, or 18% of Bolivia. The lithological units are mainly Mesoproterozoic medium and high-grade metasedimentary and meta-igneous rocks, which have been covered by Tertiary laterites and Quaternary alluvial basin deposits. Earlier studies have referred to this as the Guaporé craton, but Santos et al. (2008) proposed that are not basement rocks belonging to the craton proper but rather, that they represent the 1.45–1.10 Ga Sunsas orogen, formed along the craton margin. Major tectonic events in the orogen are dated 1465– 1420, 1370–1320, and 1180–1110 Ma. The subsequent Brazilian tectonism (ca. 600–500 Ma) only had minor effects on the orogen (Litherland et al., 1986, 1989).

The Chaco-Beni plains, located in the central part of the country, cover 40% of Bolivia. The topography is dominated by the southwestern Amazon basin wetlands. Lying below 250 m elevation the wetlands offer little relief or outcrop. These extensive plains are part of the foreland basin of the Central Andes and include a 1 to 3 km thick sequence of Cenozoic foreland alluvial sediment in the west and much thinner accumulations atop a broad forebulge to the east (Horton and DeCelles, 1997). This sequence overlies Tertiary red-bed sediments that are >6 km thick which in turn rest unconformably on the Precambrian crystalline basement to the east and Paleozoic and Mesozoic sedimentary rocks to the west. The alluvial accumulations are products of several Neogene to Holocene episodes of post-kinematic and epeirogenetic isostatic adjustment in the Eastern Andes and its piedmont.

Rocks of the Bolivian Andean orogen include the Subandean zone, Eastern Cordillera, Altiplano, and the Western Cordillera, represent approximately 42% of Bolivia. These physiographic provinces form a series of mountain chains, isolated mountain ranges, and plains, with a north-to-south trend (Ahlfeld and Schneider-Scherbina, 1964). This part of the orogen has a length of 1,100 km, with a maximum width of 700 km, and an average crustal thickness of 70 km. The orogen displays a distinct oroclinal bend in the main fabric orientation at the Arica Elbow (18°–19°S).

The Subandean zone is the thin inland margin of an orogen-parallel fold-and-thrust belt, which is partly obscured by sediments of the western side of the active foreland basin. It is characterized by north- south- trending, narrow mountain ranges with elevations between 500 and 2,000 m. The dominant lithologies include Paleozoic siliciclastic marine and Mesozoic and Tertiary continental sedimentary rocks.

The Eastern Cordillera, the uplifted interior of the Andean thrust belt, includes polydeformed sequences of shale, siltstone, limestone, sandstone, slate, and quartzite deposited since the Ordovician. The largely Paleozoic clastic flysch basin sediments and metamorphic rocks extend over an area of approximately 280,000 km<sup>2</sup> were deposited along the ancient Gondwana margin and first deformed in the middle to late Paleozoic. After Permian to Jurassic rifting, they were uplifted, folded and displaced on thrust faults during the Andean compression, which may have been as early as Late Cretaceous (McQuarrie et al., 2005).

The Altiplano is comprised of a series of intermontane, continental basins with a combined length of approximately 850 km, an average width of 130 km, and an area of approximately 110,000 km<sup>2</sup>. The basins have been uplifted to form a high plateau at elevations between 3,600 and 4,100 m. Geomorphologically, the province consists of an extensive flat plain that is interrupted by isolated mountain ranges. Crustal shortening, rapid subsidence, and, with concurrent sedimentation accumulated a sequence thickness of as much as 15 km during the Andean orogeny (Richter et al., in USGS and GEOBOL, 1992). Basin fill was dominated by erosion of the Western Cordillera during Late Eocene-Oligocene, but Neogene shortening in the Eastern Cordillera and Subandean zone led to a subsequent dominance of younger sediments derived from the east (Horton et al., 2002).

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The Western Cordillera consists of a volcanic mountain chain that is 750 km in length and 40 km in average width, with an area of about 30,000 km<sup>2</sup>. Late Jurassic and Early Cretaceous flows and pyroclastic rocks and marine sandstone and siltstone sequences dominate the Cordillera in Peru and Chile. Lesser Late Cretaceous continental sediment was deposited above the marine rocks and, simultaneously, large granitoid plutons, many of which are associated with large porphyry orebodies, were emplaced along the coasts of adjacent Peru and Chile. In Bolivia, the province is dominated by high andesitic to dacitic strata volcanoes, erupted since ca. 28 Ma, which define the narrow, main Central Andes magmatic arc.

7.3 Regional
 Geology

7.3.1 Eastern
 Cordillera Introduction

The Bolivar, Porco and Caballo Blanco deposits are located in the central part of the Eastern Cordillera, a thick sequence of Paleozoic marine siliciclastic and argillaceous sedimentary rocks deposited on the western margin of Gondwana and deformed in a fold-thrust belt. There were two major tectonic cycles in the Paleozoic: The Lower Paleozoic Famatinian cycle (the Tacsarian and Cordilleran cycles of Bolivia), and the Upper Paleozoic Gondwana cycle (Subandean cycle of Bolivia).

The late Precambrian supercontinent broke up with the opening of the southern Iapetus Ocean and the spreading of Laurentia away from Gondwana in the latest Precambrian or early Cambrian (Figure 7-3 through Figure 7-5). Ocean closure and collision of Laurentia and the South American segment of Gondwana during the Ordovician formed the Famatinian orogenic belt of NW Argentina (Dalla Salda et al., 1992a) which has been correlated with its probable Laurentian equivalent, the Taconic event of the Appalachian orogen (Dalla Salda et al., 1992b). The Famatinian belt records extension in the latest Precambrian with establishment of subduction during the Cambrian and closure of the ocean basin and continent-continent collision in the Ordovician (480-460 Ma) (Figure 7-6). The Pre-Cordillera Terrane carbonate platform of western Argentina, which has faunal similarities with eastern North America, may be a sliver of eastern Laurentia detached in the late Ordovician when Laurentia separated from Gondwana again (Dalla Salda et al., 1992a; b) (Figure 7-7).

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**Figure 7-3: Plate Tectonic Reconstructions of the Neoproterozoic Subcontinent and the Late Precambrian Supercontinent after the Opening of the Southern Iapetus Ocean**

Source: Dallas, Salda et al (1992b)

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**Figure 7-4: Plate Tectonic Reconstructions of the Neoproterozoic and Late Precambrian Subcontinents**

Source: Story (1993)

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**Figure 7-5: Paleogeography of SW Gondwana Margin in the Early Ordovician**

Source: Forsythe et al, (1993)

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**Figure 7-6: The Famatinian – Taconic Orogen in the Middle Ordovician**

Source: Dalla Salda et al, (1992b)

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**Figure 7-7: The Ordovician of the Central Andes**

Source: Forsythe et al, (1993)

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7.3.2 Tacsarian
 Cycle (Upper Cambrian to Ordovician)

During the Upper Cambrian to Caradoc Tacsarian Cycle a broad marine back-arc rift basin existed in Bolivia-Peru with its axis in the Eastern Cordillera. There was oceanic spreading in the southern part of the basin (Figure 7-6), the Puna Straits in NW Argentina, preserved as ophiolites, with intrusion of basic dikes and sills further north in the Bolivian basin. A possible magmatic arc on the Arequipa Terrane to the west of the basin, represented by calc-alkaline plutonic and volcanic rocks dated at 487-429 Ma (Mpodozis & Ramos, 1989), separated the back arc basin from a forearc. The Arequipa microplate swung about a hinge to the NW to form the Puna Straits and Bolivia-Peru back arc basin, as a Gulf of California-type basin (Sempere, 1991) or Japan-type basin (Forsythe et al., 1993). This was bordered to the east by another subduction-related magmatic arc in western Argentina, the Puna arc and its southward continuation, the Sierras Pampeanas magmatic arc represented by a granitoid belt (Mpodozis & Ramos, 1989). The Ocloyic Orogeny closed the Puna Straits Ocean basin during the Llanvirn-Caradoc as evidenced by granitic magmatism.

In SW Bolivia the sedimentary sequence begins with shallow marine clastic sediments of the basal Tremadoc transgression, which grade upwards into open marine thick graptolitic shales intercalated with subordinate turbidites and slumps of late Cambrian – Llanvirn age. The base of this super sequence outcrops in several localities along the Cochabamba-Chapare Road (central part of the Eastern Cordillera), which were described as part of the Limbo Group and of other Cambrian formations (Castaños & Rodrigo, 1978). In most of the outcrops, thick and monotonous Lower to Middle Ordovician shale beds, with subordinate siltstones and sandstones are part of the Cochabamba Group, which from base to top includes the Capinota, Anzaldo, and San Benito Formations. In the southern part of Tarija, the sequence base includes shallow marine clastic rocks. These grade upward to thick, marine graptolitic shales with subordinate Cambrian turbidites of the Condado, Torohuayco, and Sama Formations (Castaños & Rodrigo, 1978).

The majority of the sequence consists of thick and monotonous Lower to Middle Ordovician shale beds, with subordinate siltstones and sandstones are part of the Cochabamba Group, which from base to top includes the Capinota, Anzaldo, and San Benito Formations. In the southern part of Tarija, the sequence base includes shallow marine clastic rocks. These grade upward to thick, marine graptolitic shales with subordinate Cambrian turbidites of the Condado, Torohuayco, and Sama Formations (Castaños & Rodrigo, 1978). Farther north, the sequence consists of thick graptolitic and cephalopodic shales: which have localized the main decollement zone during the Neogene, and consequently older rocks are rarely exposed in the Bolivian Andes.

In southern Bolivia the shales were affected by the Ocloyic deformation with development of folding, cleavage and schistosity. The effects of this orogeny diminished to the east and north, and are not identified north of 20°S. In the north and east, the basin developed as a marine foreland basin during deformation which was infilled with the deposition of a thick, monotonous sequence of shallowing upward, shallow marine siliciclastic interbedded sandstone and shale in the Middle to Late Ordovician (Llanvirn - Caradoc) (Sempere, 1990a, b, 1991, 1993).

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7.3.3 The
 Cordilleran Cycle (Late Ordovician to Late Devonian)

During the Late Ordovician to Late Devonian Cordilleran Cycle (Chuquisaca Super sequence), the Bolivia-Peru basin occupied a back-arc setting, then from the late Llandovery formed a marine foreland basin. These basins lay east of the Puna arc on the Arequipa block, which continued south as the Sierra Pampeanas magmatic arc granitoid belt until the Early Carboniferous. These arcs were related to an eastward-dipping subduction regime east of the Precordillera. The cratonic Chilenia Terrane of the Cordillera Frontal collided with the continental margin in the latest Devonian to early Carboniferous, and the collision caused intense deformation in the western Precordillera. (Mpodozis & Ramos, 1989; Ramos et al., 1986; Ramos, 1988; Sempere, 1993).

The Cordilleran cycle began in Bolivia with rapid deepening of the basin as a back-arc with black pyritic-shale deposition (Tokochi Formation) followed by resedimented glacial-marine diamictites sediments in the Ashgill (Cancañiri Formation) with rare thin fossiliferous limestones. These are overlain by thickly bedded, thinning-upward turbidites (Llallagua Formation) and/or dark shales with minor turbidites (Uncía/Kirusillas Formation) from late Llandovery to Ludlow. Deposition in the basin was controlled by active normal faulting with facies succession induced by a major glacio-eustatic sea level low (the Ashgillian ice age) which developed between two maximum flooding episodes. The Uncía/Kirusillas Formation was the first of three main shallowing-up megasequences, which began with thick dark shales and ended with sandstone dominated units, of late Llandovery – Lochkovian, Pragian – early Giventian and late Giventian – middle Famennian ages. These were deposited in a large subsiding marine foreland basin covering the Bolivian Andes, Subandean zone and Chaco-Beni plains, reaching as far as the SW edge of the craton where they onlap the Chiquitos Supergroup (Litherland et al., 1986). This interval was a time of onlap towards the northeast and of deposition of major hydrocarbon source rocks in Bolivia. (Sempere, 1990a; b;1991; 1993).

The Cordilleran Cycle is generally considered to have been terminated by the Late Devonian to Early Carboniferous Hercynian Orogeny, which has been defined in Perú where the effects are more evident. The presence of Hercynian orogenesis in Bolivia has been questioned however, due to Late Triassic U-Pb zircon age dates of 225 Ma (Farrar et al., 1990) for both foliated and weakly foliated facies of the Zongo-Yani granite, and by implication its wide metamorphic aureole, which was assigned an "Eohercynian" age by Bard et al. (1974).

7.3.4 Subandean
 (Gondwana) Cycle (Upper Paleozoic)

The Upper Paleozoic Gondwana Cycle was characterized by establishment of eastward subduction along the new Pacific margin west of Chilenia (Cordillera Frontal) and development of a broad forearc accretionary prism, which contains blue schists and ocean floor fragments. A magmatic arc lay to the east of the subduction zone. This cycle was terminated by deformation during the lower Triassic Gondwanide orogeny, the effects of which increase southward. (Mpodozis & Ramos, 1989; Ramos et al., 1986; Ramos, 1988).

In Bolivia the Upper Paleozoic Subandean Cycle is characterized by the Late Devonian (Late Famennian) – Early Carboniferous (Mississippian) Villamontes Supersequence, deposited in the Subandean zone, Chaco and Titicaca basin, is mainly marine and comprises mudstone, black shale, sandstone, coal, glacial-marine sediments, diamictites and slumps, the stratigraphy of which is conflictive due to rapid facies variations (Sempere, 1993). The Eastern Cordillera was emergent. This was a period of high epeirogenic activity and synsedimentary tectonic instability coeval with the Hercynian deformation in Peru. Sempere (1993) considers the Mississippian sedimentation to have been the culmination of the Silurian – Devonian evolution.

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Subsequently, late Carboniferous (Pennsylvanian) – Early Triassic Cueva Supersequence was developed during a period of low subsidence and subtropical climate. In western Bolivia there was a shallow carbonate platform in the Titicaca Basin (Copacabana Formation) with deposition of white littoral-fluvial-eolian sands and evaporites on the eastern platform in the Subandean zone. The compressional Gondwana (Late Hercynian) deformation in the middle Permian of the Eastern Cordillera of Peru had weak effects in the Eastern Cordillera of Bolivia. This deformation was accompanied by transgression of the marine carbonate platform to the east. Post-orogenic calc-alkaline magmatism in the Early – Middle Triassic evolved in the late Middle Triassic toward continental tholeiitic compositions, reflecting the extension which initiated the Andean Cycle (Sempere, 1990a; b; 1993; Soler & Sempere, 1993).

7.3.5 The
 Mesozoic to Cenozoic Andean Cycle: The Serere, Puca and Corcoro Supersequences

The Andes developed during the Mesozoic to Cenozoic Andean Orogenic Cycle. Distension in the Middle to Upper Triassic related to the initial break up of Gondwana marked the start of the Andean Cycle. In the first part of the cycle, from Triassic to mid Cretaceous, an eastward dipping subduction zone existed along the length of the Pacific margin of Peru and Chile with a magmatic arc and back-arc basin, which in some segments had oceanic crust. In Chile, the arc was superimposed on the Late Paleozoic accretionary prism and an eastward younging coastal batholith intruded. (Cobbing, 1985; Dalziel, 1986; Mpodozis & Ramos, 1989).

During the Middle Triassic - Middle Jurassic, the Andean region of Bolivia was part of a stable cratonic regime. An initial rifting process of late Middle Triassic age developed in several areas, and numerous narrow grabens were filled by fluvio-lacustrine red beds and evaporites, accompanied by tholeiitic to transitional basalts (Sempere, 1990a; 1993; Soler & Sempere, 1993). Cessation of rifting in Bolivia was probably a consequence of a regional tectonic reorganization at about 220 Ma, which probably marked the resumption of subduction along the Pacific margin. The subsequent Late Triassic - Middle? Jurassic onlapping sedimentation of fluvial and eolian sands was probably controlled by post-rift thermal subsidence. The environment was of sandy deserts on the craton, akin to the Arabian Shield (Sempere, 1990a; 1993). These deposits of the Serere Supersequence occur in the Eastern Cordillera and Subandean Zone.

Since the Late Jurassic, Bolivia has been part of the Pacific subduction regime. This was marked by a Kimmeridgian rifting event in Bolivia, the "Araucana Phase", with extrusion of alkaline basalts which initiated the Puna Supersequence (Sempere et al., 1989; Sempere, 1993; Soler & Sempere, 1993). Bolivia was set in a back arc setting to the east of the Pacific margin arc and back-arc basin, with deposition of coarse clastic continental sediments and alkali basalts in the Potosí and Titicaca basins in a distensive regime related to a transtensional continental margin until the Aptian (Sempere et al., 1989).

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The Upper Cretaceous and Cenozoic of Perú - Chile was characterized by a subduction-related continental magmatic arc with no back-arc basin. In Peru, the 110 - 60 Ma Coastal Batholith was emplaced into the Jurassic - Early Cretaceous back-arc basin volcanic pile between the Mochica and Incaic 1-fold phases (Pitcher et al., 1985). At the same time in the Central Andes the magmatic arc migrated eastwards. Large parts of the forearc zone and Mesozoic arc were removed during the Cretaceous and Tertiary, either by subduction erosion or by longitudinal strike-slip faults such as the Atacama Fault (Mpodozis & Ramos, 1989).

The mid Cretaceous compressive event inverted the Tarapacá back-arc basin of north Chile (Late Triassic - Early Cretaceous) to form the proto-Domeyko Cordillera fold-thrust belt (Mpodozis & Ramos, 1989). In Bolivia, sedimentation of the Puca Supergroup continued in a distal external foreland basin, with deposition controlled by rifting and eustatic marine transgressions from the NW. The sequence is transgressive with successively younger units covering greater areas and reaching a total thickness of up to 5,600 m in the Sevaruyo area. The strata consist of fine red-bed sediments, evaporites and alkali basalts, with marine red shales in the Aptian and marine carbonates in the Cenomanian, Campanian and Maastrichtian. (Riccardi, 1988; Sempere et al., 1989; Soler & Sempere, 1993). The end of the Puca Supersequence is marked by an important unconformity developed at the end of the Paleocene, followed by deposition of thick red beds in the Altiplano and Eastern Cordillera in an external continental foreland basin during the Eocene and Oligocene (53 - 27 Ma; Sempere 1990a).

The Cenozoic evolution of Bolivia was dominated by considerable horizontal shortening (Sempere, 1990). Cenozoic basins of the Corocoro Supersequence developed in the Cordillera and in the plains in that time are related to the uplift of the Andes. During the Lower Paleocene-Lower Oligocene, a foreland basin formed east of the Andes. A thickening of the crust enabled the accumulation of 2.5 km of red beds in the Altiplano and Eastern Cordillera (Sempere, 1995).

7.3.6 The
 Andean Orogeny

The first major deformation in the Andean Cycle in Bolivia occurred during the Late Oligocene to Early Miocene (27-19 Ma) when the orogenic front jumped from west of Bolivia to the Eastern Cordillera, and the Bolivian Andes started to develop as a mountain belt. Major crustal shortening by thrusting occurred in the Eastern Cordillera, and deformation of the Subandean Zone also began. Since the Late Oligocene, the Altiplano has functioned as an intermontane foreland basin with deposition of thick continental sediments, with smaller intermontane basins in the Eastern Cordillera.

The external foreland basin moved east to the Subandean – Llanura (Beni-Chaco) Basin. The second major period of thrusting occurred between 11-5 Ma. Thrusting is mainly eastward-verging towards the foreland, with an important west-verging back-thrust belt in the eastern Altiplano and western side of the Eastern Cordillera.

7.3.7 Mesozoic
 to Cenozoic Magmatism

Extension-related granites were intruded in the Cordillera Real in the Triassic–Jurassic (227-180 Ma) (Everden et al., 1977; McBride, 1977; Grant et al., 1979; Farrar et al., 1990).

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Alkaline volcanic activity was initiated in the Late Oligocene (28-21 Ma) in the Western Cordillera and western Altiplano, coincident with the first major period of deformation. At the same time granitoid plutons intruded in the southern part of the Cordillera Real (Illimani, Quimsa Chata, Santa Vera Cruz) with related tin-tungsten-silver-lead-zinc-polymetallic mineralization (28-20 Ma). Similar deposits also developed to the south as far as Potosi, such as Colquiri and Chicote Grande. These deposits are hosted by Paleozoic sediments and related to buried plutons of this age. The main period of magmatism was the Middle Miocene (17-12 Ma) with an eastward "breakout" of magmatism in an unusually broad arc across the Western Cordillera, Altiplano and Eastern Cordillera, generally forming small extrusive (domes) and intrusive (stocks, sills) bodies. Further magmatism occurred across this wide arc during the Late Miocene (10-5 Ma) during the second main period of crustal shortening. This was characterized by stratovolcanoes, ash-flow calderas, and major ignimbrite shields such as Los Frailes and Morococala in the Eastern Cordillera. (Baker, 1981; Baker & Francis, 1978; Evernden et al., 1977; Grant et al., 1979; McBride et al., 1983; Redwood, 1987; Redwood & Macintyre, 1989; Soler & Jimenez, 1993; Thorpe et al., 1982.).

7.4 Local
 Geology

The Caballo Blanco zinc, silver, lead mine, situated south of Potosi, is located in the Jayaquila – Victoria corridor, a 5-7 km north-south structural zone with three sectors, from north to south, the Colquchaquita, Reserva, and Tres Amigos mines. They are not described in the published literature. They are hosted by volcanic rocks of the Kari-Kari volcanic complex, with dimensions of 32 km north-south and 12 km wide, located on the SE side of the Los Frailes felsic volcanic field that covers an area of 8,500 km<sup>2</sup> at altitudes of 4,000 – 5,200 masl. Deposit genesis initiated with the intrusion of small granitoids at about 25 Ma at Kumurana, at the southern end of the Kari massif, and Azanaques. These were followed by the formation of Kari at about 20 Ma that is interpreted to be a resurgent caldera with welded ignimbrite fill. Ash flows, domes and stocks formed in the Cebadillas episode at 17-10 Ma, including the Cerro Rico dome with Ag-Sn mineralization at 13.8 Ma (Zartman & Cunningham, 1995; Cunningham et al., 1996; Rice et al., 2005). Huge volumes of felsic ash flows erupted to form the Livicucho and Condor Nasa ignimbrites at 8-7 Ma and the main Los Frailes ignimbrites at 3.5-1.5 Ma. The final stages were the eruption of large resurgent rhyolitic domes at 4-1 Ma, and the Nuevo Mundo volcanic province at <1 Ma. (Francis et al., 1981; Schneider, 1985, 1987; Schneider & Halls, 1985; Kato, 2013; Kato et al., 2014; Kay et al., 2018)

The rocks of the Kari complex are felsic, peraluminous, and rich in garnet, cordierite and tourmaline (Schneider, 1987).

Mineralization in its generality is characterized by being housed in Philonian structures divided into three domain orientations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Oriented
 at N 10°-20° E, are Colquechaquita such as Karina, Viviana, Camila, and some Tres
 Amigos veins namely, Catalina, Milagros, Milagros Este, Tatiana and Central;

2. Oriented
 N 10°-30° W are the Reserve veins called Rosario, Wendy, Juanita and Blanquita, along
 with Ramo Catalina at Tres Amigos;

3. Corresponding
 to veins in the Porvenir region which have an N-S orientation, the Veta Rostia at Reserva
 the Milagros veins at Tres Amigos; and

4. Oriented
 N 40°-45° W° is the Daniela vein at Tres Amigos.

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General mineralogy is composed of quartz-pyrite-chalcopyrite and marmatite, sphalerite, galena, boulangerite as primary minerals in addition to accessory minerals such as siderite, calcite and ankerite at the trace amounts.

7.5 Property
 Geology

Field observations and geological mapping carried out, it has been possible to differentiate by their location seven local lithological units, which are classified based on their texture, structure and color.

Lithologically, the mineralized corridor named the Jayaquila – Victoria is made up of these seven local units classified as: 1) The DaOGM unit which corresponds to a dark medium grained dacite of; 2) The DaFVO unit which corresponds to an olive green dacite; 3) The BxFV unit which is a volcanic flow; 4) The DaGF unit which is a fine grained dacite; 5) The DaGM unit which is a medium grained dacite; 6) The DaP unit which is a porphyritic dacite and; 7) The LimOrd which is an Ordovician limonite's:

● **Medium grained dark dacite** (DaOGM) – It is characterized by being a rock of high resistance, has dark gray aphanitic texture similar to volcanic glass, where the crystals are composed of plagioclases and feldspars that are equigranular and locally have porphyry appearance. The unit has disseminated syngenetic pyrite present along with fine red-pink garnet. This unit can be greater than 200 m thick and is located at the central west end of the Reserva-Colquechaquita corridor;

● **Olive green dacite** (DaFVO) – Adjacent to the (DaOGM), the DaFVO's main characteristic is that of lamination and/or foliation. It is of fine to medium grained and gray to olive green. It has low hardness and as a result forms geomorphologically depressions. In addition, there are increases in limonite and slate xenoliths in the matrix, however, locally may be joined by isolated blebs of medium grain light gray dacite. The unit varies in thickness from 80 m to the north to 150 m to the south;

● **Volcanic flow gap** (BxFV) – This unit is located at the base of the (DaOGM). It is greenish gray in color with an olive-green aphanitic matrix mixed with sedimentary Ordovician lithoclasts of slate and limonite and older clasts of fine-grained dacite. At surface it is found with oxidized zones shown in outcrop, possibly due to the presence of pyrite without genetics. The thickness of this unit varies from 10 m to the north to 60 m to the south. This package is truncated to the north close to Tres Amigos;

● **Fine-grained dacite** (DaGF) – This unit is not a dominant unit as it is only present locally to the South of the corridor, apart from Reseva and Porvenir. This unit is light gray in color, is silicified with small garnet present;

● **Medium grain dacite** (DaGM) – This unit is the predominant unit throughout the Colquechaquita, Reserva, Porvenir and in Tres Amigos mine areas. It is gray to light gray in color but can present whitish in isolated instances where there is elevated garnet and reduced biotite. This unit is also part of the Dacitic Dome (Cerro Molle Punco). At Colquechaquita, this unit appears to be the oldest rocks due relative distribution and the mesh-like fracturing characteristics present; and

● **Porphyritic dacite** (DaP) – This unit has greater development at Tres Amigos enveloping the Dacite Dome. This unit are of moderate hardness having a matrix that is light gray aphanitic color, has medium to coarse grain inequigranular texture where plagioclases reach 1 cm in diameter and are related to the mineralization in Colquechaquita South and Tres Amigos. To the south of the corridor this unit is not present.

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7.6 Mineralization

7.6.1 Reserva
 Mine

<u>Rosario Vein (ROS 1000)</u>

The Rosario is a major Philonian type, mesothermal phase structure, it is split into a North Zone and South Zone, with a strike of N 10 ° W and dip of 65 ° to 70 ° extending 1,000 m in length from the intersection with the Wendy vein. The mineralization is composed of marmatite, sphalerite, galena and jamesonite in addition to pyrite, siderite and quartz.

<u>Wendy Vein (WE 1001)</u>

The Wendy vein is a pre-mineral, fracture-filled brecciated unit that is oriented from North to South, with dip of 75° NE, and a strike length of 900 m with widths being on average 0.70 m. The Wendy vein is composed mainly of marmatite, sphalerite, galena and jamesonite with the addition of pyrite, siderite, marcasite and quartz.

<u>Porvenir Vein (POR 1003)</u>

The Porvenir Vein, located in the Porvenir area, is a secondary structure, with widths ranging between 0.20 to 1.50 m. The Porvenir extends for over 2.6 km, striking N-S and dipping 60° to 78° to the east. It has been developed for approximately 300 m on the +40 and +80 levels, where widths range between 0.25 to 0.50 m. On the surface it is recognized for its pervasive argillic alteration and oxidation, accompanied by faulted and fractured material. Mineralization is composed of sphalerite, galena, pyrite, quartz and siderite. It is not currently being explored or developed by the company.

<u>Wendy Ceiling Vein (WT 1002)</u>

The Wendy Ceiling vein is located east of the main Wendy vein striking N 20 E, dipping between 75° to 85° to the East, however it is quite thin ranging from between 0.10 to 0.40 m in width, with a recognized and exploited length of 300m. Its general mineralogy is composed of quartz, sphalerite, galena, pyrite. It presents itself in the form of a failed fault gap with extensive argillization and oxidation.

<u>Blanquita Vein (BLA 1004)</u>

The Blanquita vein is located west and sub-parallel to the Juanita vein, possibly joining the Juanita vein to the south.

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This vein outcrops and is presented as a limonitized gap accompanied by argillization and with quartz present locally. It has a horizontal extension of 2.4 km, oriented from 10° to 20° NW, dipping between 65° to 80° NE however dips steeply locally to 70° toward the southwest, with thicknesses ranging between 0.15 to 0.50 m.

This vein is developed to the south for approximately 600 m and to the north of Tres Amigos for between 250 to 400 m. The thickness of the vein being mined is approximately 0.6 m.

Mineralogically it is composed of marmatite, galena, limonite, quartz, sphalerite and argillite.

7.6.2 Colquechaquita
 Mine

Colquechaquita is a hydrothermal system where zinc, lead and silver minerals have filled fractures., sphalerite, galena, jamesonite are the predominant economic minerals, however pyrite, chalcopyrite, quartz, siderite and pyrrhotite, are present as gangue minerals. The system shows vertical zonation, which has been observed historically as the mine was originally according to historical data this mine is considered as a silver deposit in the in the upper levels however, at current mining levels such as Level -215, there is an increase in, sphalerite, marmatite, chalcopyrite, pyrrhotite.

<u>Karina Vein (KA 1011)</u>

The Karina Vein is a rosary-like hydrothermal Philonian fault filled structure. Distributed throughout two sectors, North and South, with strike of N10°W and dip of 80° to 90° to the northeast extending 450 m from the Triunfo headframe. The South zone is oriented N 10°-25° W, dipping 65° to 85° to the northeast, extends for 530 m. Economic mineralization is composed of sphalerite, marmatite, galena and jamesonite while the gangue is composed of pyrite, siderite and quartz. The predominant alteration minerals are siliceous, argillic, chloritization and sericitization. The average width of the vein is 1.5 m. The most relevant characteristic is the presence of kaolin associated with faulting and mylonite. The average width of the vein ranges from 0.50 to 2.0 m.

<u>Viviana Vein (VI 1010)</u>

The Viviana Vein is a splay or branch from the Karina vein to the east, Viviana vein possibly corresponds to a second magmatic event, located on the south side of Karina vein, in an area called Z-2 (zone 2), whose predominant characteristic is that it is the result of normal faulting with a preferential strike of N 15° W and dipping 65° to the northeast. This vein has a general strike direction of N 20° E with dip between 55° to 85° to the southeast, and is traced for 900 m. The average width of the Viviana vein is 1.60 m composed mainly of marmatite, sphalerite, galena, jamesonite with the addition of pyrite, siderite, marcasite and quartz.

<u>Camila Vein (CA 1012)</u>

The Camilla vein corresponds to a ramp in the roof of the Karina vein, which dips from 40° to 85° in an easterly direction. However, it extends in two directions; 1) the first being from S 34°E in the north section and 2) oriented at S 16°W in the southern section, with the latter joining the Karina vein with the north section appearing to have more favorable grades and thicknesses. The Camilla is structurally controlled predominantly related to a significant fault oriented at S45°E / 82°NE. Outboard from this fault towards the south, the mineralization reduced in concentration and thickness. The mineralogy of the vein is composed by sphalerite, galena, pyrite, siderite, which forms rosaries in both horizontal and vertical directions, with an average width of 0.5 m extending 160 m in length along levels -120, -160, -200 and -240.

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7.6.3 Three
 Amigos Mine

<u>Catherine (CAT 1020)</u>

It is a rosary-type Philonian structure, the ore corresponds to the filling of fault of Hydrothermal origin. Distributed in two sectors, North Zone and South Zone, the first with an average course N 25 ° E and 80 to 85 ° of inclination in se direction recognized and exploited along 750 m in length. The ore is composed of sphalerite, marmatite, galena and jamesonite. In addition, there is pyrite, siderite and quartz. The predominant alteration types are argillic, chloritic and sericitic. The average width of the vein is 0.50 m with the most predominant feature being the presence of kaolin within the fault and the argillic alteration anulus where the rock is fractured.

<u>Ramo Catalina (RCAT 1021)</u>

It is a Ramo de la Veta Catalina, in the area called Zona Sur Cuya. La Veta has a general course of North – South with 75° to 80° the SE, recognized along 750 m. The average width of the vein is 0.45 m. composed mainly of marmatite, galena, sphalerite and jamesonite with the addition of pyrite, siderite and quartz.

<u>Daniela Vein (DAN 2022)</u>

The Daniela vein is transverse to the Catalina vein, with general heading N49°W and widths of between 0.20 m to 0.8 m extending 500 m. It is mineralogically comprising of marmatite, galena, sphalerite, quartz and jamesonite.

<u>Miragos Vein (MIL 1023)</u>

The Miragros vein is an argentiferous vein that has a recognized extension of 2.0 km, varying in orientation where to the south it has a strike of N-S changing to 10° NW to the north, with dips that are also variable from between 60° to 80° E-NE, shifting to subvertical at depth. It has been traced to the -160 level with thicknesses varying between 0.3 to 0.75 m, however, at surface the thickness ranges between 0.20 to 1.20 m.

The Miragos vein is recognized by its argillic alteration and oxidation accompanied by fault material. Its mineralogy is comprised of sphalerite, galena, quartz, pyrite.

<u>Central Vein (CE 1024)</u>

The Central vein is structurally controlled corresponding to the Veta fault, dipping from 80° to 85° in an easterly direction. It is oriented at N22°E, eventually intersecting the Karina and Daniela veins. The main characteristic of the vein is that it has a massive mineralization which is composed of sphalerite, galena, pyrite, siderite, in the form of rosaries horizontally with an average width of 0.5 m extending 330 m in length on Level 200.

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<u>Veta Tatiana (TA 1032)</u>

Veta Tatiana was discovered during the execution of the integration ramp, it corresponds to a fault type vein, with an average thickness of 0.45m, recognized along 220 m at Level 220. The vein is composed of marmatite, galena, sphalerite, pyrite, siderite, and jamesonite.

<u>Veta Milagros Este</u> 

Veta Milagros Este is a branch to the south of the Milagros vein, with an average thickness of 0.40 m, recognized along 200m at Level 220. The vein is composed of marmatite, sphalerite, pyrite, siderite, and galena.

<u>Erlinda Vein</u>

The Erlinda vein is located to the east of the Tatiana vein, it corresponds to a fracture-filled vein, with an average thickness of 0.2 m, mineralogically composed of sphalerite, pyrite, siderite, and galena, the vein extends 40 m at Level -250.

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8 Deposit Types

The most important ore deposits of the Eastern Cordillera are polymetallic hydrothermal deposits mined principally for Sn, W, Ag and Zn, with sub-product Pb, Cu, Bi, Au and Sb. They are related to stocks, domes and volcanic rocks of Middle and Late Miocene age (22 to 4 Ma). Mineralization occurs in veins, fracture swarms, disseminations and breccias. The deposits of the Eastern Cordillera are epithermal vein and disseminated systems of Au, Ag, Pb, Sb, as that have been telescoped on to higher temperature mesothermal Sn-W veins and, in some cases, porphyry Sn deposits. The "telescoping" is a characteristic of these deposits and is the product of the collapse of a hydrothermal system, whereby younger lower temperature fluids overprint the alteration and mineralization developed by older higher temperature fluids. The systems show a fluid evolution from a high temperature, low sulfidation state to intermediate sulfidation epithermal and high sulfidation epithermal.

A typical example is the Cerro Rico where high temperature veins at depth, with a low sulfidation assemblage of cassiterite, wolframite, pyrite, arsenopyrite, bismuthinite and minor pyrrhotite (the main tin-tungsten ore stage), are overprinted at higher levels by an intermediate sulfidation epithermal assemblage of Ag-Pb-Sb sulfosalts (the main silver ore stage), with disseminated high sulfidation epithermal silver mineralization in the upper part of the system (a major silver resource).

These polymetallic deposits have been described as Bolivian Polymetallic Vein Deposits by the U.S. Geological Survey with the following characteristics (Ludington et al., 1992; Redwood, 1993; Sillitoe et al., 1975):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Lithological Control**. Paleozoic, Mesozoic and Cenozoic sedimentary rocks and metsediments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Structural Control**. Hinge zones of regional anticlines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Subvolcanic Intrusions**. Spatially and genetically related to stocks and volcanic rocks with 60-70
 % SiO<sub>2</sub>, clusters of dikes and/or porphyritic domes of rhyolite, dacite, rhyodacite,
 or quartz latitite composition with alkaline tendencies. The mineralization can occur within
 the stocks and domes, in volcanic rocks (e.g., Porco, Caballo Blanco), or in sedimentary
 rocks distal to stocks (e.g., Bolivar) or inferred to be related to buried stocks (e.g.,
 Huanuni);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Style of Mineralization**. Disseminated, parallel veins, veinlets, fracture swarms, breccias;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Ore Minerals**. Pyrite, marcasite, pyrrhotite, sphalerite, galena, cassiterite, arsenopyrite,
 chalcopyrite, stibnite, stannite, teallite, tetrahedrite, tennantite, wolframite, bismuth,
 bismuthinite, argentite, gold, and Ag-Sb-sulphosalts (freibergite, andorite), Pb-Sb-sulfosalts
 (zinkenite, boulangerite, jamesonite), Pb-Sn-Sb-sulfosalts (franckeite, cylindrite), and
 Bi sulfosalts. Telescoping of intermediate sulphidation epithermal mineralization of Au,
 Ag, Pb, Sb, As, etc. on to higher temperature mesothermal, low sulphidation Sn-W mineralization
 is characteristic;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Gangue Minerals**. Quartz, barite, and Mn carbonate. There is a transition upward from massive
 sulfides, to quartz, quartz-barite, and barite-chalcedony towards the upper parts of the
 deposits; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Hydrothermal Alteration**. Sericitic (sericite-quartz-pyrite) often with tourmaline in the central part
 and zoned outward to argillic and propylitic alteration. The upper zones have advanced argillic
 lithocaps with alunite, residual vuggy silica and silicification. Breccias are common.

The Cballo Blanco, Porco and Reserva deposits is considered a "Bolivian-type" polymetallic which has the primary reference and quoted as described in Arce-Burgao (2009). The Bolivian vein deposits can be identified into three subgroups:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Deposits
 associated with tin porphyries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Deposits
 associated with volcanic domes and sub volcanic stocks; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Deposits
 associated with sedimentary rocks. This classification is based mainly on host rock lithology.

One of the most common types of mineralization in the country, the Bolivar-type is the product of widespread hydrothermal activity between 22 Ma and 4 Ma. The deposits are characterized by a polymetallic signature which is usually telescoped coexistence of low and high temperature minerals and are spatially related to epi-zonal and meso-zonal intrusions. Early stages of mineralization are high temperature, high salinity, and high pressure, indicative of great formations depths. Several overlapping stages of lower temperature events, due to later igneous events and supergene process is during evolution of the Andes, occurred between 11 and 4 Ma. Several of these deposits are classified as giant, such as Sierra Rico de Potosi and Llallagua or "world class" such as Oruro and Huanumi.

On a district scale, deposits from the different subgroups may sometimes be spatially and or genetically associated. The style of mineralization includes groups of veins, subsidiary vane swarms, veinlets, stockwork, and dissemination mineralization. The veins are hosted in a variety of host rocks that include Paleozoic sedimentary and metasedimentary rocks, meso-zonal and epi-zonal stocks, and syn-kinematic flows, dikes and volcanic domes that are generally of rhyolitic, dacitic, and acidic compositions. In general, the deposits have similar origins although they differ with respect to metal signatures and/or fluid geochemistry.

The main metallic minerals, although not necessarily present in every deposit, are cassiterite, sphalerite, galena, pyrite, pyrrhotite, arsenopyrite, chalcopyrite, stibnite, stannite, tetrahedrite, wolframite, native bismuth, bismuthinite, argentite, native gold, and complex sulphosalts such as teallite, franckeite, and cylindiite. The main economical exploitable minerals are tin and silver, with less important tungsten, bismuth, an antimony.

The temperatures of homogenization and the salinities obtained from fluid inclusions in quartz and in sphalerite, and less commonly in cassiderite and barite, average 300<sup>o</sup>C and 20% weight equivalent NaCl, respectively. Turneaure (1970), identified an early boiling during mineral deposition examining fluid inclusions, which was confirmed by later studies that showed boiling occurred intermittently during all stages of mineral deposition (Arce Burgoa and Nambu 1989).

The Bolivar zinc-tin deposit is located 90 km southeast of Oruro, in the Canadon Antequera district (Figure 8-1). Mineralogy of the deposit includes sphalerite, galena, cassiterite, jamesonite, pyrite, arsenopyrite and marcasite in a dominant gangue of quartz.

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**Figure 8-1: Conceptual Model of Bolivian Polymetallic Vein Type Deposits (modif. From Heuschmidt, 2000)**

Source: Heuschmidt (2000)

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9 Exploration

There has been no exploration performed on behalf of the Santacruz.

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10 Drilling

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 Drilling
 Summary

The Caballo Blanco Project, which is comprised of the Colquechaquita, Reserva and Tres Amigo mines, is an "advanced property" and is a well-established, active mining operation. Glencore and subsequently Santacruz Silver has performed exploration and resource expansion drilling of 123 surface and underground drillholes at the Caballo Blanco Project since 2010 totalling 39,562.55 m.

As of January 2023, Santacruz had drilled approximately 19 holes for a total of 5,061 m at the Caballo Blanco operations since the acquisition from Glencore. Table 10-1, through Table 10-3 summarizes the historical drilling at Colquechaquita, Reserva and Tres Amigos, respectively. Note that the Santacruz drilling is highlighted in **blue**.

**Table 10-1: Colquechaquita Drilling Programs in 2010 and 2021**

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| &nbsp;&nbsp;**Phase** | &nbsp;&nbsp;**Date** | &nbsp;&nbsp;**Hole ID** | &nbsp;&nbsp;**Type** | &nbsp;&nbsp;**Total (m)** | &nbsp;&nbsp;**Core Size** | &nbsp;&nbsp;**Target** | &nbsp;&nbsp;**Total Program Budget ($US)** |
| &nbsp;&nbsp;I | &nbsp;&nbsp;2010 | &nbsp;&nbsp;CQT_01 - CQT_03 | &nbsp;&nbsp;UG | &nbsp;&nbsp;998.8 | &nbsp;&nbsp;HQ/NQ | &nbsp;&nbsp;vn Viviana | &nbsp;&nbsp;194115 |
| &nbsp;&nbsp;**II** | &nbsp;&nbsp;**2021** | &nbsp;&nbsp;**DDH_COC_VI_04s - DDH_COC_VI_05s** | &nbsp;&nbsp;**Surface** | &nbsp;&nbsp;**1009** | &nbsp;&nbsp;**HQ/NQ** | &nbsp;&nbsp;**vn Viviana** | &nbsp;&nbsp;**139666** |

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**Table 10-2: Reserva Drilling Programs from 2010 through 2021**

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| &nbsp;&nbsp;**Phase** | &nbsp;&nbsp;**Year** | &nbsp;&nbsp;**Hole ID** | &nbsp;&nbsp;**Type** | &nbsp;&nbsp;**Total (m)** | &nbsp;&nbsp;**Core Size** | &nbsp;&nbsp;**Target** | &nbsp;&nbsp;**Total Program Budget ($US)** |
| &nbsp;&nbsp;I | &nbsp;&nbsp;2010 | &nbsp;&nbsp;DDH_02 - DDH_11 | &nbsp;&nbsp;Surface | &nbsp;&nbsp;2221.85 | &nbsp;&nbsp;HQ/NQ | &nbsp;&nbsp;vn: Rosario | &nbsp;&nbsp;346609 |
| &nbsp;&nbsp;II | &nbsp;&nbsp;2011 | &nbsp;&nbsp;DDH_01 - DDH_13 | &nbsp;&nbsp;Surface | &nbsp;&nbsp;3598.60 | &nbsp;&nbsp;HQ/NQ | &nbsp;&nbsp;vn: Reserva | &nbsp;&nbsp;561382 |
| &nbsp;&nbsp;III | &nbsp;&nbsp;2011 -2012 | &nbsp;&nbsp;DDH_RES_ROS_02s - DDH_RES_ROS_11s; DDH_RES_WE_01s - DDH_RES_WE_9s | &nbsp;&nbsp;Surface | &nbsp;&nbsp;5570.00 | &nbsp;&nbsp;HQ/NQ | &nbsp;&nbsp;vn: Rosario, Wendy | &nbsp;&nbsp;868920 |
| &nbsp;&nbsp;IV | &nbsp;&nbsp;2014 | &nbsp;&nbsp;DDH_RES_ROS_13s - DDH_RES_ROS_30s; DDH_RES_BLA_33s - DDH_RES_BLA_34s; DDH_RES_VI_23s - DDH_RES_VI_35s; DDH_RES_WE_17s - DDH_RES_WE_18s | &nbsp;&nbsp;Surface | &nbsp;&nbsp;8787.70 | &nbsp;&nbsp;HQ/NQ | &nbsp;&nbsp;vn: Rosario, Wendy, Blanquita, Viviana | &nbsp;&nbsp;1142401 |
| &nbsp;&nbsp;V | &nbsp;&nbsp;2015 | &nbsp;&nbsp;DDH_RES_BLA_36s - DDH_RES_BLA_39s | &nbsp;&nbsp;Surface | &nbsp;&nbsp;1608.00 | &nbsp;&nbsp;HQ/NQ | &nbsp;&nbsp;vn: Blanquita | &nbsp;&nbsp;201978 |
| &nbsp;&nbsp;VI | &nbsp;&nbsp;2017 | &nbsp;&nbsp;DDH_RES_ROS_40s; DDH_RES_ROS_41i - DDH_RES_ROS_46i | &nbsp;&nbsp;Surface / UG | &nbsp;&nbsp;1354.00 | &nbsp;&nbsp;HQ/NQ | &nbsp;&nbsp;vn: Rosario | &nbsp;&nbsp;213542 |
| &nbsp;&nbsp;**VII** | &nbsp;&nbsp;**2021** | &nbsp;&nbsp;**DDH_RES_ROS_47i - DDH_RES_ROS_49i; DDH_RES_ROS_50s DDH_RES_ROS_52s** | &nbsp;&nbsp;**Surface / UG** | &nbsp;&nbsp;**774** | &nbsp;&nbsp;**HQ/NQ** |  | &nbsp;&nbsp;**120592** |

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**Table 10-3: Tres Amigos Drilling Programs from 2010 through 2023**

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| &nbsp;&nbsp;**Phase** | &nbsp;&nbsp;**Year** | &nbsp;&nbsp;**Hole ID** | &nbsp;&nbsp;**Type** | &nbsp;&nbsp;**Total (m)** | &nbsp;&nbsp;**Core Size** | &nbsp;&nbsp;**Target** | &nbsp;&nbsp;**Total Program Budget ($US)** |
| &nbsp;&nbsp;I | &nbsp;&nbsp;2010 | &nbsp;&nbsp;DDH_14 - DDH_16 | &nbsp;&nbsp;Surface | &nbsp;&nbsp;790.3 | &nbsp;&nbsp;HQ/NQ | &nbsp;&nbsp;vn: Catalina | &nbsp;&nbsp;106764 |
| &nbsp;&nbsp;II | &nbsp;&nbsp;2011 | &nbsp;&nbsp;DDH_3AMG_CAT_01 - DDH_3AMG_CAT_04s; DDH-3AMG_MIL_08s; DDH_3AMG_RCAT_06s DDH_3AMG_RACT_07s | &nbsp;&nbsp;Surface | &nbsp;&nbsp;2007.80 | &nbsp;&nbsp;HQ/NQ | &nbsp;&nbsp;vn: Catalina, Milagros, Ramo Catalina | &nbsp;&nbsp;361314 |
| &nbsp;&nbsp;III | &nbsp;&nbsp;2013 | &nbsp;&nbsp;DDH_TAM_MIL_09s - DDH_TAM_MIL_10s | &nbsp;&nbsp;Surface | &nbsp;&nbsp;381 | &nbsp;&nbsp;HQ/NQ | &nbsp;&nbsp;vn: Milagros | &nbsp;&nbsp;49721 |
| &nbsp;&nbsp;IV | &nbsp;&nbsp;2014 | &nbsp;&nbsp;DDH_TAM_RCAT_11s - DDH_TAM_RCAT_15s; DDH_TAM_MIL_13s - DDH_TAM_MIL_14s; | &nbsp;&nbsp;Surface | &nbsp;&nbsp;1398.50 | &nbsp;&nbsp;HQ/NQ | &nbsp;&nbsp;vn: Ramo Catalina, Milagros | &nbsp;&nbsp;182504 |
| &nbsp;&nbsp;V | &nbsp;&nbsp;2017 | &nbsp;&nbsp;DDH_TAM_MIL_16s - DDH_TAM_MIL_20s; DDH_TAM_DA_17s - DDH_TAM_DA_18s; DDH_TAM_CAT_19s; DDH_TAM_CEN_21s; DDH_TAM_RCAT_22s; DDH_TAM_CRU_23s; DDH_TAM_BLA_24i - DDH_TAM_BLA_25i | &nbsp;&nbsp;Surface / UG | &nbsp;&nbsp;2651.00 | &nbsp;&nbsp;HQ/NQ | &nbsp;&nbsp;vn: Milagros, Daniela, Catalina; Central, Ramo Catalina, Crucera, Blanquita | &nbsp;&nbsp;361287 |
| &nbsp;&nbsp;VI | &nbsp;&nbsp;2020 | &nbsp;&nbsp;DDH_TAM_RCAT_26i - DDH_TAM_RCAT_37i; DDH_TAM_MIL_27i - DDH_TAM_MIL_33i; DDH_TAM_DA_28i - DDH_TAM_DA_32i | &nbsp;&nbsp;Surface | &nbsp;&nbsp;2777.00 | &nbsp;&nbsp;HQ/NQ | &nbsp;&nbsp;vn: Ramo Catalina, Milagros, Daniela | &nbsp;&nbsp;482307 |
| &nbsp;&nbsp;**VII** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**DDH_TAM_ELY_38i - DDH_TAM_ELY_41i; DDH_TAM_TA_39i - DDH_TAM_TA_43i** | &nbsp;&nbsp;**Surface** | &nbsp;&nbsp;**1732.00** | &nbsp;&nbsp;**HQ/NQ** | &nbsp;&nbsp;**vn: Ely, Tatiana** | &nbsp;&nbsp;**204620** |
| &nbsp;&nbsp;**VIII** | &nbsp;&nbsp;**2023** | &nbsp;&nbsp;**DDH_TAM_RCAT_44i - DDH_TAM_RCAT_46i; DDH_TAM_VI_47i; DDH_TAM_MIL_48i - DDH_TAM_MIL_50i; DDH_TAM_MER_51i** | &nbsp;&nbsp;**Surface** | &nbsp;&nbsp;**1903.00** | &nbsp;&nbsp;**HQ/NQ** | &nbsp;&nbsp;**vn: Ramo Catalina, Viviana, Milagros, Mercedes** | &nbsp;&nbsp;**252767** |

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The drilling has been primarily focused upon the extension of the veins to depth particularly for definition and delineation of inferred resources. Figure 10-1 shows a plan view of drillhole locations along with the underground channel sample data. Figure 10-2 through Figure 10-4 shows representative section views of the drilling along with channel sample data and topography for Colquechaquita, Reserva and Tres Amigos, respectively.

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**Figure 10-1: Plan View of Drillhole Locations at Caballo Blanco**

**Figure 10-2: Section View A-A' (azimuth 15°) Showing the Colquechaquita Deposit**

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**Figure 10-3: Section View B-B' (azimuth 350°) Showing the Reserva Deposit**

**Figure 10-4: Section View C-C' (azimuth 335°) Showing the Tres Amigos Deposit**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 Drilling
 Programs

Drills were operated by Maldonado Exploraciones of La Paz, Bolivia, Xplomine of Lima, Peru and Geodrill S.A. of La Serena, Chile. The surface and underground drilling was performed by drilling larger diameter HQ core at the early stage of the hole and reduced to NQ size if drilling conditions became difficult.

Drillhole collar surveys were completed using a differential GPS (UTM WGS-84) and the collars of the underground holes are surveyed in using total station by company survey staff. Downhole surveys were derived using either Tropary, Flexit or Reflex depending on the year and the drilling contractor.

The details for the surface and underground drilling program for the Caballo Blanco Project from 2010 to 2023 are summarized in Table 10-4.

**Table 10-4: Caballo Blanco Drilling Details from 2010 through January 2023**

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|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Contractor Company** | &nbsp;&nbsp;**Year** | &nbsp;&nbsp;**Holes Drilled** | &nbsp;&nbsp;**Meters Drilled** | &nbsp;&nbsp;**Downhole Survey Instrument** |
| &nbsp;&nbsp;**Surface** | &nbsp;&nbsp;**Surface** | &nbsp;&nbsp;**Surface** | &nbsp;&nbsp;**Surface** | &nbsp;&nbsp;**Surface** |
| &nbsp;&nbsp;Maldonado Exploraciones &nbsp;&nbsp;II | &nbsp;&nbsp;2021 | &nbsp;&nbsp;2 | &nbsp;&nbsp;1009 | &nbsp;&nbsp;Trópary |
| &nbsp;&nbsp;**Underground** | &nbsp;&nbsp;**Underground** | &nbsp;&nbsp;**Underground** | &nbsp;&nbsp;**Underground** | &nbsp;&nbsp;**Underground** |
| &nbsp;&nbsp;Geodrill &nbsp;&nbsp;I | &nbsp;&nbsp;2010 | &nbsp;&nbsp;2 | &nbsp;&nbsp;998.8 | &nbsp;&nbsp;Flexit |

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**Table 10-5: Reserva Drilling Details from 2000 through January 2023**

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|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Contractor/Company** | &nbsp;&nbsp;**Phase** | &nbsp;&nbsp;**Year** | &nbsp;&nbsp;**Holes Drilled** | &nbsp;&nbsp;**Meters drilled** | &nbsp;&nbsp;**Downhole Survey Instrument** |
| &nbsp;&nbsp;**Surface** | &nbsp;&nbsp;**Surface** | &nbsp;&nbsp;**Surface** | &nbsp;&nbsp;**Surface** | &nbsp;&nbsp;**Surface** | &nbsp;&nbsp;**Surface** |
| &nbsp;&nbsp;Geodrill | &nbsp;&nbsp;I | &nbsp;&nbsp;2010 | &nbsp;&nbsp;5 | &nbsp;&nbsp;2221.85 | &nbsp;&nbsp;Flexit |
| &nbsp;&nbsp;Geodrill | &nbsp;&nbsp;II | &nbsp;&nbsp;2011 | &nbsp;&nbsp;8 | &nbsp;&nbsp;3598.6 | &nbsp;&nbsp;Flexit |
| &nbsp;&nbsp;Xplomine | &nbsp;&nbsp;III | &nbsp;&nbsp;2011-2012 | &nbsp;&nbsp;12 | &nbsp;&nbsp;5570 | &nbsp;&nbsp;Flexit |
| &nbsp;&nbsp;Maldonado Exploraciones | &nbsp;&nbsp;IV | &nbsp;&nbsp;2014 | &nbsp;&nbsp;23 | &nbsp;&nbsp;8787.7 | &nbsp;&nbsp;Tropary |
| &nbsp;&nbsp;Maldonado Exploraciones | &nbsp;&nbsp;V | &nbsp;&nbsp;2015 | &nbsp;&nbsp;4 | &nbsp;&nbsp;1608 | &nbsp;&nbsp;Reflex |
| &nbsp;&nbsp;Maldonado Exploraciones | &nbsp;&nbsp;VI | &nbsp;&nbsp;2017 | &nbsp;&nbsp;1 | &nbsp;&nbsp;161 | &nbsp;&nbsp;Reflex |
| &nbsp;&nbsp;Maldonado Exploraciones | &nbsp;&nbsp;VII | &nbsp;&nbsp;2021 | &nbsp;&nbsp;3 | &nbsp;&nbsp;417 | &nbsp;&nbsp;Reflex |
| &nbsp;&nbsp;**Underground** | &nbsp;&nbsp;**Underground** | &nbsp;&nbsp;**Underground** | &nbsp;&nbsp;**Underground** | &nbsp;&nbsp;**Underground** | &nbsp;&nbsp;**Underground** |
| &nbsp;&nbsp;Maldonado Exploraciones | &nbsp;&nbsp;VI | &nbsp;&nbsp;2017 | &nbsp;&nbsp;6 | &nbsp;&nbsp;1193 | &nbsp;&nbsp;Reflex |
| &nbsp;&nbsp;Maldonado Exploraciones | &nbsp;&nbsp;VII | &nbsp;&nbsp;2012 | &nbsp;&nbsp;3 | &nbsp;&nbsp;357 | &nbsp;&nbsp;Reflex |

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**Table 10-6: Tres Amigos Drilling Details from 2000 through January 2023**

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| &nbsp;&nbsp;**Contractor/Company** | &nbsp;&nbsp;**Phase** | &nbsp;&nbsp;**Year** | &nbsp;&nbsp;**Holes Drilled** | &nbsp;&nbsp;**Meters drilled** | &nbsp;&nbsp;**Downhole Survey Instrument** |
| &nbsp;&nbsp;**Surface** | &nbsp;&nbsp;**Surface** | &nbsp;&nbsp;**Surface** | &nbsp;&nbsp;**Surface** | &nbsp;&nbsp;**Surface** | &nbsp;&nbsp;**Surface** |
| &nbsp;&nbsp;Geodrill | &nbsp;&nbsp;I | &nbsp;&nbsp;2010 | &nbsp;&nbsp;3 | &nbsp;&nbsp;790.3 | &nbsp;&nbsp;Flexit |
| &nbsp;&nbsp;Xplomine | &nbsp;&nbsp;II | &nbsp;&nbsp;2011 | &nbsp;&nbsp;8 | &nbsp;&nbsp;2007.8 | &nbsp;&nbsp;Flexit |
| &nbsp;&nbsp;Maldonado Exploraciones | &nbsp;&nbsp;III | &nbsp;&nbsp;2013 | &nbsp;&nbsp;2 | &nbsp;&nbsp;381 | &nbsp;&nbsp;Tropary |
| &nbsp;&nbsp;Maldonado Exploraciones | &nbsp;&nbsp;IV | &nbsp;&nbsp;2014 | &nbsp;&nbsp;5 | &nbsp;&nbsp;1398.5 | &nbsp;&nbsp;Reflex |
| &nbsp;&nbsp;Maldonado Exploraciones | &nbsp;&nbsp;V | &nbsp;&nbsp;2017 | &nbsp;&nbsp;8 | &nbsp;&nbsp;2171 | &nbsp;&nbsp;Reflex |
| &nbsp;&nbsp;**Underground** | &nbsp;&nbsp;**Underground** | &nbsp;&nbsp;**Underground** | &nbsp;&nbsp;**Underground** | &nbsp;&nbsp;**Underground** | &nbsp;&nbsp;**Underground** |
| &nbsp;&nbsp;Maldonado Exploraciones | &nbsp;&nbsp;V | &nbsp;&nbsp;2017 | &nbsp;&nbsp;2 | &nbsp;&nbsp;480 | &nbsp;&nbsp;Reflex |
| &nbsp;&nbsp;Maldonado Exploraciones | &nbsp;&nbsp;VI | &nbsp;&nbsp;2020 | &nbsp;&nbsp;12 | &nbsp;&nbsp;2777 | &nbsp;&nbsp;Reflex |
| &nbsp;&nbsp;Maldonado Exploraciones | &nbsp;&nbsp;VII | &nbsp;&nbsp;2022 | &nbsp;&nbsp;6 | &nbsp;&nbsp;1732 | &nbsp;&nbsp;Reflex |
| &nbsp;&nbsp;Maldonado Exploraciones | &nbsp;&nbsp;VIII | &nbsp;&nbsp;2023 | &nbsp;&nbsp;8 | &nbsp;&nbsp;1903 | &nbsp;&nbsp;Reflex |

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Downhole survey measurements were taken every 25 m and survey results were corrected for magnetic declination however the existence of pyrrhotite may occasionally causes downhole survey anomalies that require mitigation. These are identified by the geologist during the survey measurement process and corrected by taking another survey measurement above or below the point giving the faulty readings.

Prior to commencement of drilling, the exploration geology supervisor set out the number of runs needed to reach total depth using steel bars and the blocks to be inserted by the driller into the core boxes at the appropriate depth delineated using permanent marker. Unless issues are encountered, the standard drill run length is 3 m. Then the exploration geology supervisor verifies this process by counting the number of steel bars introduced in the hole against the remaining steel bars left to complete total length of hole. Completed core is placed in wooden core boxes which are covered by wooden lids and secured with metal nails prior to being transported by mine staff from drill site to core logging facility.

For underground drillholes, orientations are marked before drill enters to drill site area, with the locations being measured using total station. The orientation of the drillhole is painted on both walls of the drift by the exploration geologist to insure correct alignment and positioning of the drill. Once the equipment mobilized and installed, the drill is leveled, and the direction is set. Finally, the dip is checked with a clinometer or compass.

Core recoveries were high, and by utilizing several drill core sizes, Glencore and Santacruz were able to ensure drillhole target completion. The majority of drillholes were drilled perpendicular to the strike and dip of the veining and therefore significantly represent true thickness of the veining.

There are no known drilling or core recovery factors that could materially impact the accuracy of these results.

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11 Sample Preparation, Analyses and Security

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 Drillhole
 and Sub-Surface Sampling and Security

As reported in Section 10 Drilling, the surface and sub-surface diamond drilling was performed primarily by Maldonado Exploraciones, Xplomine and GeoDrill S.A. from 2010-2023. The surface diamond drilling is utilized primarily for resource expansion and delineation identify extensions of structures and specifically to define inferred resources. However, the sub-surface drift and slope development sampling is the primary and significant data source for defining and estimating resources which is performed by Santacruz geological staff.

The secure, sealed core and channel samples are delivered by Santacruz mine staff for analysis to the ISO Certified (NB/ISO/IEC 17025: 2018) Don Diego assay laboratory which is located within the Don Diego mill and processing complex. The Don Diego Complex including the assay laboratory is owned and operated by the Issuer, Santacruz Silver. All samples undergo both assay preparation and assaying at the Don Diego laboratory which also employs industry accepted QA/QC programs.

All analytical results are entered and reside upon the centralized database called LIMS Laboratory Information Management System which is the responsibility and under the supervision of the Don Deigo laboratory staff. The assay information is provided to geological staff via live, non-read-write access for import into the industry recognised geological modelling and estimation software systems such as LeapFrog<sup>TM</sup> and Datamine<sup>TM</sup>.

Sample rejects and remaining half-core is stored in a secure location and labelled for access and retrieval. These facilities are fully controlled by perimeter fencing and security on the property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.1 Drill
 Core Logging, Photography, Sampling and Security

Drill core from surface and underground was stored in wooden labelled boxes, from the drill and transported from the drill to the core logging facility. Before core splitting and logging commences, drill core is systematically photographed using tripod-mounted camera in high resolution and digitally archived for reference as part of the drill and sample database.

Logging and sampling were undertaken on site by company personnel under a QA/QC protocol developed by Glencore. Technicians first prepared the core boxes by reviewing drillhole depth tags, re-assembling broken sections, and mis-placed or mis-aligned core. Core is then washed and cleaned, then marked every meter using permanent marker. Core logging is performed to identify lithology, alteration, RQD, structure, mineralization and sampling selection for core sawing was completed by technicians under the direction of the geologist.

A digital photographic record was performed on each core box, with each photo containing two to a maximum of three boxes. These photos are taken with natural light and each box are marked with their general description, such as project, sample name, box number, and start and end depths.

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The exploration geologist is responsible for marking core interval depending on interest structure in mineralization zones, from one to two meters. The typical sample lengths are 1.0 to 1.5 m with a minimum sample width of 1m and maximum lengths of approximately 2.0 m; sample lengths were based on the lithology and alteration. The geologist also marks the saw line along the core, with each side containing roughly an equivalent amount of mineralization, and also marks the start and end of each sample interval as shown in Figure 11-1. The technician records the core intervals entering then into an Excel<sup>TM</sup> spreadsheet.

**Figure 11-1: Example of Core Marked for Splitting**

Technicians secure the sample boxes while they are transported to the dedicated enclosure for cutting. Samples cutting is performed by trained, specialized personnel equipped with appropriate personal protective equipment (PPE) operating a Target Portasaw<sup>TM</sup> brand diamond disc cutting machine as shown in Figure 11-2. This type of cutting machine is used because it allows the operator to safely split the core longitudinally with precision. It is also possible to make perpendicular cuts and to cut segments greater than 45 cm can be split.

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**Figure 11-2: Core Splitting Facilities**

Once the core is cut, half of the drill core is inserted into sample bags along with a sample ticket, tied with plastic straps and then placed in consecutive order according to sequential coding. Then, seven to ten samples are placed in rice bags, based on weight and not exceeding 25 kg. Then the rice sacks are grouped into batches and order maintaining as shown Figure 11-3.

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**Figure 11-3: Samples Prepared for Analysis Transport**

The samples are then delivered to the laboratory through an analysis request form which lists the required elements for reporting. The form also includes details about the quantity of samples sent, how many sacks they are transported in, and indicate if they are special samples as shown in Figure 11-4.

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**Figure 11-4: Sample Submission Form**

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All core boxes that have completed the entire logging and sampling process are stored in the logging area sequentially. They are then transported to the permanent secured core storage facilities and then stored on covered metal shelves as shown in Figure 11-5. Each core box is labelled and coded for easy identification and access.

**Figure 11-5: Drill Core Storage Facilities**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.2 Sub-Surface
 Sampling and Logging

The sub-surface sampling is primarily performed within horizontal drift development in addition to face and stope development. Prior to entering the designated underground sampling areas, inspection is performed to ensure or establish adequate ventilation and to perform scaling to eliminate hazards. The structure is washed by pressure hose prior to sampling and the faces marked with white spray paint to delineate length and orientation of sampling transverses. Then a ladder is secured if samples are being taken from the back or at heights up the drift walls to insure safe access. Samples are the taken using a hammer and chisel, collected into an un-used sample bag. Alternatively, samples are collected onto a cleaned and washed tarp, or a specialized tarp lined sample collection pocket for transfer into sample bags. Samples are collected from a 10 cm wide and at least 2 cm depth channel using the hammer and chisel by following the white painted markings. The sampling is performed as two person teams with one operating the hammer and chisel, and the other collected the rock and mineralized fragments. A new sample bag or freshly cleaned tarp is used for each sample. In the case where the sample width is greater than approximately 1 m then more than one sample must be taken. For stope sampling, systematic samples are taken every 4 m. These samples are split depending upon the structure being sampled and the character of the mineralization encountered as shown in Table 11-1. Samples are then introduced to a polyethylene bag with its sample number labeled, sample tag inserted and gathered for transport to the surface for delivery to the analytical laboratory by Santacruz staff of analysis.

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**Table 11-1: Underground Sample Mineralization Codes**

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| &nbsp;&nbsp;**Code** | &nbsp;&nbsp;**Description** |
| &nbsp;&nbsp;BM | &nbsp;&nbsp;Mineralized Breccia |
| &nbsp;&nbsp;CM | &nbsp;&nbsp;Mineralization Stock |
| &nbsp;&nbsp;VM | &nbsp;&nbsp;Massive Vein |
| &nbsp;&nbsp;VB | &nbsp;&nbsp;Brecciated Vein |
| &nbsp;&nbsp;F | &nbsp;&nbsp;Fault |
| &nbsp;&nbsp;CM | &nbsp;&nbsp;Wall, back, floor, shoulder waste |
| &nbsp;&nbsp;FM | &nbsp;&nbsp;Mineralized Fault |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 Sample
 Preparation and Analysis

Samples were transported to the Don Diego laboratory, which is ISO-17025 accredited, for sample preparation and analysis where they are documented and entered to the Laboratory Information Management System (LIMS) for tracking and secure reporting of data and results. It is important to note that the Don Diego Laboratory is owned and operated by the Issuer, Santacruz, and the was owned and operated by Glencore prior to the purchase of all of the Sinchi Wayra operations.

Once received the samples are laid out for sample preparation which entails crushing and pulverizing the drill core down to 95% passing -140 µm. The resulting pulps are weighed and individually packaged into envelopes and loaded onto carts for assaying. The resulted prepared samples are then assayed for silver, lead, zinc and iron using an Atomic Absorption Spectroscopy (AAS) for silver, lead, zinc and iron followed by a Gravimetric finish for silver samples > 2100 g/t and Volumetric for lead > 16% and zinc > 20% as shown in Figure 11-6.

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**Figure 11-6: Assay Methods Employed at the Caballo Blanco Mine**

Analytical results are provided via secure servers and pdf formatted assay certificates as shown in Figure 11-7.

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**Figure 11-7: Example of Don Diego Laboratory Assay Certificate**

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Santacruz database files are stored and managed in Access and Excel<sup>TM</sup> formats before being transferred to LeapFrog<sup>TM</sup> and Datamine<sup>TM</sup> software.

All half-core is stored at a dedicated core storage facility that is locked and is within a fully controlled perimeter wall and fencing with security on the property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 QA/QC
 Procedures and Discussion of Results

The purpose of Quality Assurance and Quality Control (QA/QC) is to ensure that the laboratory procedures may be relied upon by guarding against sample contamination and test whether the equipment used to prepare the samples has been sufficiently cleaned between sequential assays. In addition, it is standard and highly recommended practice to insert additional "control" samples to continually test the precision and accuracy of the resulting analyses.

Since 2000, Sinchi Wayra has implemented QA/QC programs to varying degrees which employ industry standards and accepted practices for drillcore and channel sampling. This includes the regular insertion of blanks and standards randomly into the sample stream along with performing duplicate analysis of pulps and coarse rejects to assess analytical precision and accuracy. Additionally, beginning in 2012, the practice of including coarse and pulp duplicate QA/QC samples was employed.

Field blanks are non-mineralized material sourced locally and inserted into the sample series one every 20 samples (5%). Field blanks are inserted to test for any potential carry-over contamination which might occur in the crushing phase of sample preparation, because of laboratory poor cleaning practices.

Duplicate analysis of pulps and quarter-core are used to evaluate analytical precision and to determine if any biases exist between laboratories. Duplicate analysis of coarse rejects is used to analyze preparation error. Table 11-2 details the QA/QC sample insertion rate.

**Table 11-2: QA/QC Sample Insertion Rates**

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| &nbsp;&nbsp;**Sample Type** | &nbsp;&nbsp;**Insertion Rates** | &nbsp;&nbsp;**Notes** |
| &nbsp;&nbsp;Blanks | &nbsp;&nbsp;1 every 20 | &nbsp;&nbsp;Usually inserted at the end of mineralized runs to measure carry-over |
| &nbsp;&nbsp;Pulp Duplicates | &nbsp;&nbsp;1 every 20 | &nbsp;&nbsp;Undertaken at second laboratory with same analytical technique. High- and low-grade mineralized samples are usually chosen |
| &nbsp;&nbsp;Coarse Duplicates | &nbsp;&nbsp;1 every 20 | &nbsp;&nbsp;Normally choose mineralized samples, used to measure laboratory sample preparation |

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In 2022, a total of 417 control samples within a sample population of as shown in Table 11-3 were assigned for QA/QC purposes and accounted for approximately 15% of total samples taken during the program.

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**Table 11-3: Quantity of Control Samples by Type**

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| &nbsp;&nbsp;**Control Type** | &nbsp;&nbsp;**#** |
| &nbsp;&nbsp;Field Blanks | &nbsp;&nbsp;140 |
| &nbsp;&nbsp;Coarse Duplicates | &nbsp;&nbsp;133 |
| &nbsp;&nbsp;Pulp Duplicates | &nbsp;&nbsp;144 |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**417** |

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Contamination and determining whether adequate cleaning practices are being performed at the laboratory is evaluated through the direct incorporation of sample blanks. Blank samples are do typically have some level of very low grade, background values depending upon where they are sourced from so the results should be at that value or within acceptable error (±) thresholds. The placement of blanks within the sample stream is typically in the middle of an identified mineralized structure or immediately at the end of the section or sample run. Figure 11-8 through Figure 11-10 show results show three failures or 2% for silver while the performance for lead is significantly higher with 16 failures and one warning for a failure rate of 11%. This should be investigated as to the source which may be background or remnant lead contamination at the laboratory. The results of the blank analysis for zinc show not excellent but moderately good performance with eight failures for a failure rate of 6%.

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**Figure 11-8: Plot of Ag g/t Values for Field Blanks**

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**Figure 11-9: Plot of Pb% Vaues for Field Blanks**

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**Figure 11-10: Plot of Zn% Vaues for Field Blanks**

Precision is a measure of reproducibility which is measured by introducing duplicate samples randomly into the sample stream. At the Caballo Blanco mine, both coarse and pulp duplicates are performed in order to ensure appropriate levels of precision are being attained at the Don Diego laboratory facilities. Coarse duplicates entail taking a physical split of the sample at the sample collection stage and then including that duplicate blindly into the sample stream. Pulp duplicates entail taking a physical split of the sample at the culmination of the sample preparation stage at the laboratory and re-inserted into the sample stream.

Figure 11-11 through Figure 11-13 shows the comparative results for the original versus duplicate grades for silver, lead and zinc, respectively. Note that a ±10% relative difference threshold is denoted as a red line. Of the 133 coarse duplicate analyses, the results show fair results with nine significant failures and eight warnings for a failure rate of 6% as shown in Figure 11-11. Figure 11-12 also shows poor results for lead where there are seven failures and ten warnings for a failure rate of 5%. Although the failure rate for lead is not particularly high, where a high failure rate would be greater than 10%, it is recommended that the sampling practices be reviewed to determine whether there may be a reason for potential cross-contamination at the sampling and perhaps assay stage. Figure 11-13 shows only three failure and one warnings for the zinc coarse duplicates for a failure rate of 2%.

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**Figure 11-11: Plot of Coarse Reject Duplicates – Ag g/t**

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 11-15

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**Figure 11-12: Plot of Coarse Reject Duplicates – Pb%**

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**Figure 11-13: Plot of Coarse Reject Duplicates – Zn%**

Figure 11-14 through Figure 11-16 shows the comparative results for the original versus duplicate grades for silver, lead and zinc pulp duplicates, respectively. Again, note that a ±10% relative difference threshold is denoted as a **red line**. Of the 144 pulp duplicate analyses, the results show excellent results with only one silver and one zinc failure and no warning for a failure rate of less than 0.7% as shown in Figure 11-14 through Figure 11-16. In addition, results for lead show there are no failures and no warnings for a failure rate of 0%. The difference between the pulp and coarse duplicate failure rates indicates that there may be issues related to sampling methods and/or contamination occurring during the sampling or transport process that should be investigated and mitigated.

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 11-17

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**Figure 11-14: Plot of Pulp Duplicates – Ag g/t**

**Figure 11-15: Plot of Pulp Duplicates – Pb%**

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 11-18

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**Figure 11-16: Plot of Pulp Duplicates – Zn%**

![](ex99-28_049.jpg)

In summary, the quality assurance and quality practices and methods employed are reasonable and produce relatively good results although issues should be investigated to insure reliability or results. Recommendations with respect to the QA/QC sample selections that the company should investigate obtaining Certified Reference Material form an outside accredited source for blanks, particularly barren blanks, and for specific Ag, Pb, Zn standards.

The LIMS system is widely used and accepted at the laboratory while interfaces to users are automated and trusted. The system is also highly secure which is critical in ensuring that data is not tampered with or prone to inadvertent error however, this also makes it difficult to access, review and report data externally. In addition, reporting functions are relatively dated and system upgrades should be investigated, and some additional customization would also be desirable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4 QP
 Statement

It is the opinion of the QP, Garth Kirkham, P.Geo., that the sampling preparation, security, analytical procedures and quality control protocols used by Santacruz are consistent with generally accepted industry best practices and therefore reliable for the purpose of resource estimation.

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 11-19

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12 Data Verification

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 Verifications
 by the Authors of this Technical Report

The following details the data verification performed by the Qualified Persons for the completion of this Technical Report. Verification activities were performed on sampling methods and results, assay database, geological interpretation and lithological models, resource estimation procedures, models and results, metallurgy and processing, mining design and dilution, along with reserves models and results.

Multiple site visits were conducted by the QPs, as detailed in Section 2.

There have been no limitations or failures to conduct data verification that were identified by the QPs in the preparation of this Technical Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.1 Site
 Visit & Verification

The purpose of these visits is to fulfill the requirements specified under NI 43-101, to gain familiarization with the property, to validate the existence, location, extent and the mineralization and deposits. In addition, the site visits are an important component for verification of all information and data being submitted by the company for inclusion into the NI43-101 technical report including sample data, geology, QA/QA procedures and mineral resource models and results. These site visits consisted of underground tours of non-mineralized development headings, sampling, storage areas and existing infrastructure. In addition to gathering on-site data and reports, performing interviews, walking through procedures, and investigating areas of discrepancy, the identification and collection of independent verification data such as samples are all critical activities that make up a site visit.

Prior to the site visits, the author reviewed all collected data sources and reports. The primary sources of data for inspection were the drillhole and underground channel sample data, related assay data, QA/QC data and analyses, assay certificates and LIMS databases. In addition, internal company reports and demonstrations were provided detailing the methods and procedures for sample collection, handling and chain-of-custody, QA/QC procedures and results, and resource estimation methods and reporting.

The QP, Garth Kirkham, P.Geo., visited the property between August 10 through August 13, 2021 and March 15 through March 30, 2023. The site visit included an inspection of the property, offices, underground operations, core storage facilities, and tours of major centres and surrounding villages most likely to be affected by any potential mining operation.

The August 2021 site visit performed by the QP to support the Technical Report dated December 17, 2021 included a tour of the offices, core logging, and storage facilities which showed clean, well-organized, professional environments. Santacruz geological staff and on-site personnel led the QP through the chain of custody and methods used at each stage of the logging and sampling process. All methods and processes are to common industry standards and common best practices, and no issues were identified. The 2021 site visit also entailed attending all operations including the Boliva miner, Porco mine and the Caballo Blanco complex which included separate attendance to the Tres Amigos, Colquechaquita and Reserva mines. Visits to the underground operations showed extensive, on-going mining operations. In addition, the tour included tours through the Don Diego Milling and Processing Complex along with the sample storage facilities.

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The tour of the property showed a clean, well-organized, professional environment. On-site staff led the author through the methods used at each stage of the resource estimation process. All methods and processes are up to industry standards and reflect leading practices, and no issues were identified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.2 Sample
 Database Verification

Verification of the Caballo Blanco drillhole and underground sample assay database was primarily focused on silver, lead and zinc in addition to iron, arsenic, sulphur and tin. Sample databases were supplied in Excel<sup>TM</sup> format and in LeapFrog<sup>TM</sup>. Checks against source data and assay certificates showed agreement. Statistical analyses used to investigate and identify errors were performed and resulted in minor issues. These have been corrected and it is recommended that a continued program of random "spot checking" the database against assay certificates be employed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.3 Independent
 Sampling

No verification samples were taken during the 2021 site visit due to severe limitations on transport of materials due to COVID at that time. In addition, the 2021 site visit was performed in support of the Technical Report which did not include a resource estimate and was performed prior to transfer of ownership of all properties from Glencore and Santacruz.

The 2023 site visit included a visit of the Don Diego mill complex which included a tour of the Don Diego laboratory which included an extensive review of the methods and procedures along with gathering appropriate documentation for reporting.

Also, during the 2023 site visit, an extensive independent sampling verification plan was implemented with a total of 80 samples collected across from the Bolivar, Porco and Caballo Blanco operations. The Don Diego laboratory is an NB/ISO/IEC 17025:2018 accredited laboratory which performs all assay analyses for the mining and processing operations for Sinchi Wayra including Caballo Blanco.

In order to ensure reliability of results particularly as the data is being used for resource estimation purposes with this Technical Report, independent verification duplicate samples are sent to an accredited external umpire laboratory. These verification samples were secured and transported to SGS Peru for analysis and comparison. SGS Peru is a well-established certified assay laboratory that possess and maintains ISO 14000 accreditation. Individual samples were placed in plastic bags with a uniquely numbered tag, after which all samples were collectively placed in a larger bag and delivered by independent transport to the SGS laboratory in Lima Peru for analysis. The selection was a combination of acid digestion and Induced Coupled-Plasma Atomic Emission Spectroscopy (ICP) along with screening and hydroxide precipitation for overlimit values.

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A total of 45 samples which were comprised of 15 coarse duplicated and 30 pulp duplicates were sent for independent analysis as shown in Table 12-1.

**Table 12-1: Caballo Blanco Independent Verification Sampling**

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Mine** | &nbsp;&nbsp;**Sample** | &nbsp;&nbsp;**Ag ppm** | &nbsp;&nbsp;**As ppm** | &nbsp;&nbsp;**Cu ppm** | &nbsp;&nbsp;**Fe%** | &nbsp;&nbsp;**Pb%** | &nbsp;&nbsp;**S%** | &nbsp;&nbsp;**Sn ppm** | &nbsp;&nbsp;**Zn%** |
| &nbsp;&nbsp;**COLQUECHAQUITA** | &nbsp;&nbsp;11128 | &nbsp;&nbsp;142 | &nbsp;&nbsp;>10000 | &nbsp;&nbsp;611.9 | &nbsp;&nbsp;10.54 | &nbsp;&nbsp;1.66 | &nbsp;&nbsp;17.97 | &nbsp;&nbsp;405 | &nbsp;&nbsp;16.79 |
| &nbsp;&nbsp;**COLQUECHAQUITA** | &nbsp;&nbsp;11130 | &nbsp;&nbsp;197 | &nbsp;&nbsp;>10000 | &nbsp;&nbsp;850 | &nbsp;&nbsp;>15 | &nbsp;&nbsp;1.45 | &nbsp;&nbsp;31.11 | &nbsp;&nbsp;975 | &nbsp;&nbsp;13.29 |
| &nbsp;&nbsp;**COLQUECHAQUITA** | &nbsp;&nbsp;11132 | &nbsp;&nbsp;119 | &nbsp;&nbsp;>10000 | &nbsp;&nbsp;754.2 | &nbsp;&nbsp;>15 | &nbsp;&nbsp;0.61 | &nbsp;&nbsp;30.29 | &nbsp;&nbsp;598 | &nbsp;&nbsp;12.51 |
| &nbsp;&nbsp;**COLQUECHAQUITA** | &nbsp;&nbsp;11134 | &nbsp;&nbsp;417 | &nbsp;&nbsp;>10000 | &nbsp;&nbsp;1303.6 | &nbsp;&nbsp;13.85 | &nbsp;&nbsp;0.83 | &nbsp;&nbsp;28.4 | &nbsp;&nbsp;721 | &nbsp;&nbsp;30.68 |
| &nbsp;&nbsp;**COLQUECHAQUITA** | &nbsp;&nbsp;11137 | &nbsp;&nbsp;310 | &nbsp;&nbsp;>10000 | &nbsp;&nbsp;697.5 | &nbsp;&nbsp;>15 | &nbsp;&nbsp;1.43 | &nbsp;&nbsp;25.4 | &nbsp;&nbsp;868 | &nbsp;&nbsp;10.07 |
| &nbsp;&nbsp;**COLQUECHAQUITA** | &nbsp;&nbsp;8658 | &nbsp;&nbsp;122 | &nbsp;&nbsp;>10000 | &nbsp;&nbsp;742.2 | &nbsp;&nbsp;>15 | &nbsp;&nbsp;0.71 | &nbsp;&nbsp;37.9 | &nbsp;&nbsp;556 | &nbsp;&nbsp;11.55 |
| &nbsp;&nbsp;**COLQUECHAQUITA** | &nbsp;&nbsp;8659 | &nbsp;&nbsp;70 | &nbsp;&nbsp;>10000 | &nbsp;&nbsp;255.1 | &nbsp;&nbsp;9.94 | &nbsp;&nbsp;1.12 | &nbsp;&nbsp;13.6 | &nbsp;&nbsp;203 | &nbsp;&nbsp;10.68 |
| &nbsp;&nbsp;**COLQUECHAQUITA** | &nbsp;&nbsp;8660 | &nbsp;&nbsp;31.2 | &nbsp;&nbsp;>10000 | &nbsp;&nbsp;92.9 | &nbsp;&nbsp;9.36 | &nbsp;&nbsp;0.64 | &nbsp;&nbsp;7.23 | &nbsp;&nbsp;116 | &nbsp;&nbsp;2.72 |
| &nbsp;&nbsp;**COLQUECHAQUITA** | &nbsp;&nbsp;8661 | &nbsp;&nbsp;118 | &nbsp;&nbsp;>10000 | &nbsp;&nbsp;209.9 | &nbsp;&nbsp;>15 | &nbsp;&nbsp;0.70 | &nbsp;&nbsp;27.5 | &nbsp;&nbsp;314 | &nbsp;&nbsp;6.54 |
| &nbsp;&nbsp;**COLQUECHAQUITA** | &nbsp;&nbsp;8662 | &nbsp;&nbsp;25.4 | &nbsp;&nbsp;>10000 | &nbsp;&nbsp;85.1 | &nbsp;&nbsp;10.05 | &nbsp;&nbsp;0.42 | &nbsp;&nbsp;8.73 | &nbsp;&nbsp;82 | &nbsp;&nbsp;2.42 |
| &nbsp;&nbsp;**COLQUECHAQUITA** | &nbsp;&nbsp;12007 | &nbsp;&nbsp;237 | &nbsp;&nbsp;>10000 | &nbsp;&nbsp;1110.8 | &nbsp;&nbsp;>15 | &nbsp;&nbsp;2.95 | &nbsp;&nbsp;29.5 | &nbsp;&nbsp;1591 | &nbsp;&nbsp;14.14 |
| &nbsp;&nbsp;**COLQUECHAQUITA** | &nbsp;&nbsp;12008 | &nbsp;&nbsp;126 | &nbsp;&nbsp;>10000 | &nbsp;&nbsp;496.8 | &nbsp;&nbsp;>15 | &nbsp;&nbsp;2.13 | &nbsp;&nbsp;23.1 | &nbsp;&nbsp;336 | &nbsp;&nbsp;9.83 |
| &nbsp;&nbsp;**COLQUECHAQUITA** | &nbsp;&nbsp;12009 | &nbsp;&nbsp;97.8 | &nbsp;&nbsp;>10000 | &nbsp;&nbsp;475.5 | &nbsp;&nbsp;>15 | &nbsp;&nbsp;0.79 | &nbsp;&nbsp;14.6 | &nbsp;&nbsp;476 | &nbsp;&nbsp;6.63 |
| &nbsp;&nbsp;**COLQUECHAQUITA** | &nbsp;&nbsp;12010 | &nbsp;&nbsp;178 | &nbsp;&nbsp;>10000 | &nbsp;&nbsp;417.5 | &nbsp;&nbsp;>15 | &nbsp;&nbsp;1.71 | &nbsp;&nbsp;23.8 | &nbsp;&nbsp;1046 | &nbsp;&nbsp;9.70 |
| &nbsp;&nbsp;**COLQUECHAQUITA** | &nbsp;&nbsp;12011 | &nbsp;&nbsp;46.7 | &nbsp;&nbsp;1512 | &nbsp;&nbsp;91.7 | &nbsp;&nbsp;3.99 | &nbsp;&nbsp;0.61 | &nbsp;&nbsp;4.22 | &nbsp;&nbsp;39 | &nbsp;&nbsp;2.06 |
| &nbsp;&nbsp;**RESERVA** | &nbsp;&nbsp;64904 | &nbsp;&nbsp;118 | &nbsp;&nbsp;3565 | &nbsp;&nbsp;435.6 | &nbsp;&nbsp;12.06 | &nbsp;&nbsp;1.82 | &nbsp;&nbsp;15.14 | &nbsp;&nbsp;354 | &nbsp;&nbsp;10.06 |
| &nbsp;&nbsp;**RESERVA** | &nbsp;&nbsp;64908 | &nbsp;&nbsp;57.5 | &nbsp;&nbsp;>10000 | &nbsp;&nbsp;571.5 | &nbsp;&nbsp;12.24 | &nbsp;&nbsp;0.72 | &nbsp;&nbsp;21.11 | &nbsp;&nbsp;230 | &nbsp;&nbsp;14.42 |
| &nbsp;&nbsp;**RESERVA** | &nbsp;&nbsp;64915 | &nbsp;&nbsp;57.3 | &nbsp;&nbsp;4669 | &nbsp;&nbsp;365.8 | &nbsp;&nbsp;10.85 | &nbsp;&nbsp;0.89 | &nbsp;&nbsp;16.95 | &nbsp;&nbsp;192 | &nbsp;&nbsp;10.52 |
| &nbsp;&nbsp;**RESERVA** | &nbsp;&nbsp;64920 | &nbsp;&nbsp;588 | &nbsp;&nbsp;>10000 | &nbsp;&nbsp;655.4 | &nbsp;&nbsp;14.2 | &nbsp;&nbsp;14.49 | &nbsp;&nbsp;25.3 | &nbsp;&nbsp;677 | &nbsp;&nbsp;12.29 |
| &nbsp;&nbsp;**RESERVA** | &nbsp;&nbsp;64923 | &nbsp;&nbsp;96 | &nbsp;&nbsp;4813 | &nbsp;&nbsp;593.6 | &nbsp;&nbsp;11.64 | &nbsp;&nbsp;1.53 | &nbsp;&nbsp;18.56 | &nbsp;&nbsp;248 | &nbsp;&nbsp;15.02 |
| &nbsp;&nbsp;**RESERVA** | &nbsp;&nbsp;15515 | &nbsp;&nbsp;434 | &nbsp;&nbsp;1337 | &nbsp;&nbsp;408.3 | &nbsp;&nbsp;5.81 | &nbsp;&nbsp;9.71 | &nbsp;&nbsp;15.58 | &nbsp;&nbsp;2493 | &nbsp;&nbsp;15.28 |
| &nbsp;&nbsp;**RESERVA** | &nbsp;&nbsp;15516 | &nbsp;&nbsp;253 | &nbsp;&nbsp;3518 | &nbsp;&nbsp;400.7 | &nbsp;&nbsp;12.57 | &nbsp;&nbsp;5.76 | &nbsp;&nbsp;27.88 | &nbsp;&nbsp;3731 | &nbsp;&nbsp;23.72 |
| &nbsp;&nbsp;**RESERVA** | &nbsp;&nbsp;15517 | &nbsp;&nbsp;2 | &nbsp;&nbsp;4 | &nbsp;&nbsp;9.9 | &nbsp;&nbsp;3.43 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;1.55 | &nbsp;&nbsp;14 | &nbsp;&nbsp;0.07 |
| &nbsp;&nbsp;**RESERVA** | &nbsp;&nbsp;15518 | &nbsp;&nbsp;411 | &nbsp;&nbsp;>10000 | &nbsp;&nbsp;493.9 | &nbsp;&nbsp;10.45 | &nbsp;&nbsp;3.66 | &nbsp;&nbsp;15.21 | &nbsp;&nbsp;490 | &nbsp;&nbsp;5.23 |
| &nbsp;&nbsp;**RESERVA** | &nbsp;&nbsp;15519 | &nbsp;&nbsp;183 | &nbsp;&nbsp;26 | &nbsp;&nbsp;8.6 | &nbsp;&nbsp;7.76 | &nbsp;&nbsp;8.07 | &nbsp;&nbsp;26.44 | &nbsp;&nbsp;3957 | &nbsp;&nbsp;28.39 |
| &nbsp;&nbsp;**RESERVA** | &nbsp;&nbsp;15520 | &nbsp;&nbsp;0.5 | &nbsp;&nbsp;5 | &nbsp;&nbsp;8.9 | &nbsp;&nbsp;3.14 | &nbsp;&nbsp;0.01 | &nbsp;&nbsp;0.96 | &nbsp;&nbsp;<10 | &nbsp;&nbsp;0.04 |
| &nbsp;&nbsp;**RESERVA** | &nbsp;&nbsp;15521 | &nbsp;&nbsp;1131 | &nbsp;&nbsp;7200 | &nbsp;&nbsp;1215.8 | &nbsp;&nbsp;8.44 | &nbsp;&nbsp;8.37 | &nbsp;&nbsp;17.38 | &nbsp;&nbsp;2339 | &nbsp;&nbsp;13.08 |
| &nbsp;&nbsp;**RESERVA** | &nbsp;&nbsp;15522 | &nbsp;&nbsp;242 | &nbsp;&nbsp;23 | &nbsp;&nbsp;9.1 | &nbsp;&nbsp;3.53 | &nbsp;&nbsp;11.79 | &nbsp;&nbsp;27.32 | &nbsp;&nbsp;7097 | &nbsp;&nbsp;42.97 |
| &nbsp;&nbsp;**RESERVA** | &nbsp;&nbsp;15524 | &nbsp;&nbsp;2.5 | &nbsp;&nbsp;46 | &nbsp;&nbsp;12.9 | &nbsp;&nbsp;2.89 | &nbsp;&nbsp;0.05 | &nbsp;&nbsp;2.24 | &nbsp;&nbsp;18 | &nbsp;&nbsp;0.09 |
| &nbsp;&nbsp;**RESERVA** | &nbsp;&nbsp;15525 | &nbsp;&nbsp;300 | &nbsp;&nbsp;>10000 | &nbsp;&nbsp;1005 | &nbsp;&nbsp;10.74 | &nbsp;&nbsp;2.33 | &nbsp;&nbsp;17.76 | &nbsp;&nbsp;1053 | &nbsp;&nbsp;11.93 |
| &nbsp;&nbsp;**TRES AMIGOS** | &nbsp;&nbsp;114044 | &nbsp;&nbsp;651 | &nbsp;&nbsp;494 | &nbsp;&nbsp;1325.3 | &nbsp;&nbsp;11.19 | &nbsp;&nbsp;1.519 | &nbsp;&nbsp;30.8 | &nbsp;&nbsp;128 | &nbsp;&nbsp;42.86 |
| &nbsp;&nbsp;**TRES AMIGOS** | &nbsp;&nbsp;114046 | &nbsp;&nbsp;1174 | &nbsp;&nbsp;263 | &nbsp;&nbsp;2342 | &nbsp;&nbsp;10.07 | &nbsp;&nbsp;3.121 | &nbsp;&nbsp;26.8 | &nbsp;&nbsp;171 | &nbsp;&nbsp;37.37 |
| &nbsp;&nbsp;**TRES AMIGOS** | &nbsp;&nbsp;114048 | &nbsp;&nbsp;578 | &nbsp;&nbsp;597 | &nbsp;&nbsp;1232.3 | &nbsp;&nbsp;10.54 | &nbsp;&nbsp;4.87 | &nbsp;&nbsp;29.6 | &nbsp;&nbsp;101 | &nbsp;&nbsp;40.91 |
| &nbsp;&nbsp;**TRES AMIGOS** | &nbsp;&nbsp;114050 | &nbsp;&nbsp;292 | &nbsp;&nbsp;734 | &nbsp;&nbsp;1292.9 | &nbsp;&nbsp;10.77 | &nbsp;&nbsp;1.804 | &nbsp;&nbsp;29.2 | &nbsp;&nbsp;101 | &nbsp;&nbsp;37.13 |
| &nbsp;&nbsp;**TRES AMIGOS** | &nbsp;&nbsp;114052 | &nbsp;&nbsp;588 | &nbsp;&nbsp;591 | &nbsp;&nbsp;1293.5 | &nbsp;&nbsp;10.45 | &nbsp;&nbsp;2.566 | &nbsp;&nbsp;28.9 | &nbsp;&nbsp;79 | &nbsp;&nbsp;41.54 |
| &nbsp;&nbsp;**TRES AMIGOS** | &nbsp;&nbsp;113742 | &nbsp;&nbsp;407 | &nbsp;&nbsp;886 | &nbsp;&nbsp;1191.8 | &nbsp;&nbsp;14.09 | &nbsp;&nbsp;1.956 | &nbsp;&nbsp;27.3 | &nbsp;&nbsp;133 | &nbsp;&nbsp;29.36 |
| &nbsp;&nbsp;**TRES AMIGOS** | &nbsp;&nbsp;113743 | &nbsp;&nbsp;191 | &nbsp;&nbsp;866 | &nbsp;&nbsp;1253.1 | &nbsp;&nbsp;10.86 | &nbsp;&nbsp;1.782 | &nbsp;&nbsp;24 | &nbsp;&nbsp;156 | &nbsp;&nbsp;28.68 |
| &nbsp;&nbsp;**TRES AMIGOS** | &nbsp;&nbsp;113744 | &nbsp;&nbsp;670 | &nbsp;&nbsp;771 | &nbsp;&nbsp;1163 | &nbsp;&nbsp;9.98 | &nbsp;&nbsp;2.147 | &nbsp;&nbsp;26.7 | &nbsp;&nbsp;86 | &nbsp;&nbsp;36.62 |
| &nbsp;&nbsp;**TRES AMIGOS** | &nbsp;&nbsp;113745 | &nbsp;&nbsp;464 | &nbsp;&nbsp;1310 | &nbsp;&nbsp;810 | &nbsp;&nbsp;13.29 | &nbsp;&nbsp;7.2 | &nbsp;&nbsp;24.5 | &nbsp;&nbsp;161 | &nbsp;&nbsp;24.27 |
| &nbsp;&nbsp;**TRES AMIGOS** | &nbsp;&nbsp;113746 | &nbsp;&nbsp;573 | &nbsp;&nbsp;752 | &nbsp;&nbsp;574 | &nbsp;&nbsp;8.15 | &nbsp;&nbsp;8.53 | &nbsp;&nbsp;19 | &nbsp;&nbsp;103 | &nbsp;&nbsp;22.95 |
| &nbsp;&nbsp;**TRES AMIGOS** | &nbsp;&nbsp;113521 | &nbsp;&nbsp;1006 | &nbsp;&nbsp;1262 | &nbsp;&nbsp;1212.3 | &nbsp;&nbsp;5.43 | &nbsp;&nbsp;3.324 | &nbsp;&nbsp;9.23 | &nbsp;&nbsp;115 | &nbsp;&nbsp;8.82 |
| &nbsp;&nbsp;**TRES AMIGOS** | &nbsp;&nbsp;113522 | &nbsp;&nbsp;1028 | &nbsp;&nbsp;1329 | &nbsp;&nbsp;1350.1 | &nbsp;&nbsp;5.94 | &nbsp;&nbsp;3.076 | &nbsp;&nbsp;10.7 | &nbsp;&nbsp;126 | &nbsp;&nbsp;10.65 |
| &nbsp;&nbsp;**TRES AMIGOS** | &nbsp;&nbsp;113523 | &nbsp;&nbsp;1294 | &nbsp;&nbsp;1563 | &nbsp;&nbsp;1623.6 | &nbsp;&nbsp;6.65 | &nbsp;&nbsp;3.54 | &nbsp;&nbsp;12.8 | &nbsp;&nbsp;128 | &nbsp;&nbsp;11.97 |
| &nbsp;&nbsp;**TRES AMIGOS** | &nbsp;&nbsp;113524 | &nbsp;&nbsp;1497 | &nbsp;&nbsp;1405 | &nbsp;&nbsp;1902.8 | &nbsp;&nbsp;7.31 | &nbsp;&nbsp;3.811 | &nbsp;&nbsp;14.6 | &nbsp;&nbsp;147 | &nbsp;&nbsp;15.13 |
| &nbsp;&nbsp;**TRES AMIGOS** | &nbsp;&nbsp;113525 | &nbsp;&nbsp;1407 | &nbsp;&nbsp;1444 | &nbsp;&nbsp;1774.7 | &nbsp;&nbsp;6.24 | &nbsp;&nbsp;3.312 | &nbsp;&nbsp;9.82 | &nbsp;&nbsp;121 | &nbsp;&nbsp;10.46 |

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Results of the verification samples are presented in Figure 12-1 through Figure 12-3 for silver, lead and zinc, respectively. In all cases, the correlation between the original source Don Diego assay data and that of the duplicate SGS umpire analyses, are perfect as evidenced by the respective R2 being 1. R2 is a measure of the goodness of fit of a model. In regression, the R2 coefficient of determination is a statistical measure of how well the regression predictions approximate the real data points. This sentence is inserted to confirm if this report has been reviewed, please confirm. An R2 of 1 indicates that the regression predictions perfectly fit the data.

Although, these results are not a complete audit of the laboratory, they do verify that the assay results are suitable for resource estimation purposes.

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 12-3

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**Figure 12-1: Results of Independent Verification Sampling for Ag g/t**

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 12-4

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**Figure 12-2: Results of Independent Verification Sampling for Pb%**

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**Figure 12-3: Results of Independent Verification Sampling for Zn%**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.4 Geological
 Model Verification

The geological and lithological solid domain models were supplied by Santacruz in both Datamine<sup>TM</sup> and LeapFrog<sup>TM</sup> which are both industry-leading software systems. The QP imported the multiple vein domains into a similar system called MineSight<sup>TM</sup> to verify solids volumes and ensure matching of the solids domains against the drillhole and sample database. Results confirmed location and extent of volumes are appropriate to resource estimation purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.5 Resource
 Estimation Verification

Resource block models were supplied in Datamine<sup>TM</sup> format which is an industry recognized software system used for resource estimation. These models were then imported to MineSight<sup>TM</sup> for verification of the resource estimation. In addition, independent estimations were run using the verified sample data and vein domains employing inverse distance estimations to ensure reasonableness and verify the resources independently. Results illustrated good agreement between the original and verification models.

Verification of the SG regression analysis was also performed by comparing measured versus calculated density values.

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 12-6

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.6 Conclusions

The QP is confident that the data and results are valid based on the site visits and inspection of all aspects of the project, including the methods and procedures used. It is the opinion of the QP that all work, procedures, and results have adhered to best practices and industry standards as required by NI 43-101.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.7 Adequacy
 Statement

It is the opinion of Kirkham that the data used for estimating the current mineral resources for the Caballo Blanco operations is adequate for this Resource Estimate and may be relied upon to report the mineral resources contained in this report.

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13 Mineral Processing and Metallurgical Testing

Data from August 2020 to July 2021 was used to develop the expected metallurgical performance of the Don Diego mill. This data was used to determine throughput, recovery and concentrate grade relationships. The results will be discussed in the upcoming sections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1 Company
 Feed Processing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.1 Mill
 Throughput

The expected availability for the mill is 95.5% and the utilization is 95% for an expected operating time of 90.7%. The actual throughput from August 2020 to July 2021 can be found in Figure 13-1.

**Figure 13-1: Don Diego Mill Company Feed Throughput 2020/2021**

The throughput of company feed through the Don Diego mill during the analyzed period was a little lower than the stated target, with the average of the days it operated being 960 t/d. During the analyzed period, the mill ran company feed over 247 whole or partial days and processed 239,103 t of feed. The grinding circuit targets a P<sub>80</sub> of 100 µm. The data suggests that the feed rate is not achieving the target throughput for company feed.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.2 Feed
 Grades

For the period examined, the unreconciled feed grades for the company feed were 6.87% zinc, 2.10% lead, and 237 g/t silver. The feed was somewhat variable with standard deviations of 0.66, 0.32, and 37.99 for zinc, lead, and silver respectively. These values fall within the expected ranges for Don Diego feed. The unreconciled feed grades can be seen in Figure 13-2 through Figure 13-4.

**Figure 13-2: Zinc Feed Grade 2020/2021**

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**Figure 13-3: Lead Feed Grade 2020/2021**

**Figure 13-4: Silver Feed Grade 2020/2021**

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The mill feed grades are measured at the lead circuit flotation feed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.3 Lead
 Production

The lead concentrate produced during the evaluated period measured 6,882 t which represents 2.88% of the feed to the plant.

The average grade of the lead concentrate was 61.03% lead, 3.5% zinc, and 6,460 g/t silver. The recoveries to the lead concentrate were 83.31%, 78.15%, and 1.47% for lead, silver, and zinc respectively.

The relationship between the lead feed grade and the lead recovery to the lead concentrate can be seen in Figure 13-5. While there is some variability, especially in the lower lead feed grades, a relationship can be seen between lead feed grade and recovery to the lead concentrate.

**Figure 13-5: Mill Lead Concentrate Recovery vs. Lead Feed Grade**

From the above analysis, the recovery relationship for lead to the lead concentrate will be considered: 3.65\*(lead feed grade %) + 75.69.

The silver recovery to both the lead and zinc concentrates is a byproduct of the flotation process; the silver is associated with the lead and zinc minerals and follows them into the concentrates. The recovery of silver to the lead concentrate can be seen in Figure 13-6, In this case, the silver recovery appears to have a reasonable correlation to the silver grade in the feed and therefor the relationship of 0.0459\*(Silver feed grade %) + 67.256 will be used for this report.

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**Figure 13-6: Silver Recovery to the Lead Concentrate vs. Mill Feed Silver Grade**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.4 Zinc
 Production

The zinc concentrate accounts for approximately 12.81% of the feed mass.

Over the period analyzed, the unreconciled zinc concentrate production was 30,629 t with average grades of 50.67% zinc, 1.39% lead, and 282 g/t silver. The recoveries to the zinc concentrate were 94.41%, 15.35%, and 8.55% for zinc, silver, and lead respectively.

The zinc recovery as a function of the feed grade was examined and found to be a poor relationship for determining expected zinc recovery to the zinc concentrate as can be seen in Figure 13-7. It was determined in this case that the best option was to assign a zinc recovery to the zinc concentrate of 94%, which is the average value over the period examined.

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**Figure 13-7: Zinc Recovery to the Zinc Concentrate vs. Mill Feed Zinc Grade**

The silver recovery to the zinc concentrate can be seen in Figure 13-8. In this case, the recovery has a negative relationship to the feed grade, presumably due to the positive correlation that the silver recovery to the lead concentrate has with the silver feed grade. The relationship for the silver recovery to the zinc concentrate will be taken as -0.0225 x (Silver Feed Grade) + 20.655.

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**Figure 13-8: Silver Recovery to the Zinc Concentrate vs. Mill Feed Silver Grade**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2 Toll
 Feed Processing

Data from the same time period, August 2020 to July 2021, was used to develop the expected metallurgical performance of the Don Diego mill on toll feed. As was the case for the company feed, the data was used to determine throughput, recovery and concentrate grade relationships.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2.1 Mill
 Throughput

As with the company feed, the expected availability for the mill is 95.5% and the utilization is 95% for an expected operating time of 90.7% for the toll feed. A summary of the throughput from August 2020 to July 2021 can be found in Figure 13-9.

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**Figure 13-9: Don Diego Mill Toll Feed Throughput 2020/2021**

The throughput of company feed through the Don Diego mill during the analyzed period was a slightly lower than the stated target, with the average of the days it operated being 760 t/d. During the analyzed period, the mill ran company feed over 79 whole or partial days and processed 60,002 t of feed. The data suggests that the feed rate is not achieving the target throughput for company ore.

The target grind for the Don Diego plant toll feed is a P<sub>80</sub> of 100 µm.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2.2 Feed
 Grades

For the period examined, the unreconciled feed grades for the toll feed were 8.08% zinc, 0.99% lead, and 144 g/t silver. The feed was somewhat variable with standard deviations of 2.21, 0.66, and 55.4 for zinc, lead, and silver respectively. These values fall within the expected ranges for Don Diego toll feed. The unreconciled feed grades can be seen in Figure 13-10 through Figure 13-12.

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**Figure 13-10: Toll Feed Zinc Grade 2020/2021**

**Figure 13-11: Toll Feed Lead Grade 2020/2021**

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**Figure 13-12: Toll Feed Silver Grade 2020/2021**

The toll feed head grades were measured in the same location as the company feed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2.3 Lead
 Production

The toll feed utilizes the same reagents as the company feed. The lead concentrate produced during evaluated period measured 771 t which represents 1.28% of the feed to the plant.

The average grade of the lead concentrate was 44.86% lead, 9.01% zinc, and 4,064 g/t silver. The recoveries to the lead concentrate were 52.64%, 36.90%, and 1.61% for lead, silver, and zinc respectively.

The relationship between the lead feed grade and the lead recovery to the lead concentrate can be seen in Figure 13-13. This relationship does not appear as distinct as the relationship for the company ore, but still can be used for a recovery prediction. The recovery relationship for lead to the lead concentrate was determined to be: 13.149 x (lead feed grade %) + 39.576.

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**Figure 13-13: Mill Lead Concentrate Recovery vs. Lead Feed Grade**

![](ex99-28_065.jpg)

The silver recovery to both the lead and zinc concentrates is a byproduct of the flotation process; the silver is associated with the lead and zinc minerals and follows them into the concentrates. The recovery of silver to the lead concentrate, which can be seen in Figure 13-14, does not demonstrate a strong correlation, but does offer a pattern which is used to develop a feed grade vs. recovery relationship. The silver recovery will be taken as -0.0398\*(Silver grade in the feed) + 42.791 for this report.

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**Figure 13-14: Silver Recovery to the Lead Concentrate vs. Mill Feed Silver Grade**

![](ex99-28_066.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2.4 Zinc
 Production

Over the period analyzed, the unreconciled zinc concentrate production was 9,396 t with average grades of 47.75% zinc, 1.42% lead, and 437 g/t silver. The recoveries to the zinc concentrate were 91.95%, 46.84%, and 25.45% for zinc, silver, and lead respectively. The higher lead in the zinc concentrate is due to the low recovery of lead to the lead concentrate.

The zinc recovery as a function of the feed grade was examined and although it did not have a strong correlation, it was found to have a trend which can be used to predict zinc recovery to the zinc concentrate. The zinc recovery to the zinc concentrate relationship can be seen in Figure 13-15. The relationship used for the purposes of this report for the zinc recovery to the zinc concentrate is 1.0753\*(toll feed zinc grade) + 83.221.

**Figure 13-15: Zinc Recovery to the Zinc Concentrate vs. Mill Feed Zinc Grade**

![](ex99-28_067.jpg)

The recovery of silver to the zinc concentrate, can be seen in Figure 13-16. In this case, the relationship between the siler feed grade and silver recovered to the zinc concentrate shows that it was a little more likely for silver to report to the zinc concentrate vs. the lead concentrate. Figure 13-16 demonstrates that although there is a relationship, the silver recovery to the zinc concentrate is affected by other factors than feed grade. A silver recovery of 0.0246\*(silver feed grade) + 42.991 was used for this report.

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**Figure 13-16: Silver Recovery to the Zinc Concentrate vs. Mill Feed Silver Grade**

![](ex99-28_068.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3 Metallurgical
 Assumptions

The metallurgical assumptions for recoveries and concentrate grades can be found in Table 13-1.

While both the lead and the zinc concentrates pay for the metal they are named for and for silver, a lead concentrate does not pay for zinc contained and the zinc concentrate does not pay for lead contained. The recoveries included in this report only include recovery to concentrates in which they can be paid.

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**Table 13-1: Recovery and Concentrate Grade Estimates**

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| &nbsp;&nbsp;**Parameter** | &nbsp;&nbsp;**Unit** | &nbsp;&nbsp;**Concentrates** | &nbsp;&nbsp;**Concentrates** | &nbsp;&nbsp;**Concentrates** | &nbsp;&nbsp;**Concentrates** |
| &nbsp;&nbsp;**Parameter** | &nbsp;&nbsp;**Unit** | &nbsp;&nbsp;**Lead Concentrate** | &nbsp;&nbsp;**Lead Concentrate** | &nbsp;&nbsp;**Zinc Concentrate** | &nbsp;&nbsp;**Zinc Concentrate** |
| &nbsp;&nbsp;**Parameter** | &nbsp;&nbsp;**Unit** | &nbsp;&nbsp;**Company Feed** | &nbsp;&nbsp;**Toll Feed** | &nbsp;&nbsp;**Company Feed** | &nbsp;&nbsp;**Toll Feed** |
| &nbsp;&nbsp;Zn Recovery | &nbsp;&nbsp;% | &nbsp;&nbsp;N/A | &nbsp;&nbsp;N/A | &nbsp;&nbsp;94 | &nbsp;&nbsp;1.0753\*(zinc feed grade) + 83.221 |
| &nbsp;&nbsp;Pb Recovery | &nbsp;&nbsp;% | &nbsp;&nbsp;3.65\*(lead feed grade %) + 75.69 | &nbsp;&nbsp;13.149\*(lead feed grade) + 39.576 | &nbsp;&nbsp;N/A | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;Ag Recovery | &nbsp;&nbsp;% | &nbsp;&nbsp;0.0459\*(silver feed grade) +67.256 | &nbsp;&nbsp;-0.0398\*(silver feed) + 42.791 | &nbsp;&nbsp;-0.0225 x (silver feed grade) + 20.655 | &nbsp;&nbsp;0.0246\*(silver feed grade) + 42.991 |
| &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** |
| &nbsp;&nbsp;Zn | &nbsp;&nbsp;% | &nbsp;&nbsp;3.5 | &nbsp;&nbsp;9.0 | &nbsp;&nbsp;51 | &nbsp;&nbsp;48 |
| &nbsp;&nbsp;Pb | &nbsp;&nbsp;% | &nbsp;&nbsp;61 | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;1.4 | &nbsp;&nbsp;1.4 |
| &nbsp;&nbsp;Ag | &nbsp;&nbsp;g/t | &nbsp;&nbsp;6460 | &nbsp;&nbsp;4050 | &nbsp;&nbsp;280 | &nbsp;&nbsp;440 |

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14 Mineral Resource Estimate

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1 Introduction

The purpose of this report is to document the resource estimations for the Caballo Blanco Project which includes the Colquechaquita, Reserva and Tres Amigos deposits and operating mine complexes. This section describes the work undertaken by Kirkham Geosystems, including key assumptions and parameters used to prepare the mineral resource models for Caballo Blanco which herein to be reporting using zinc-equivalent (ZnEq) cut-offs based upon updated commodity pricing and actual operating costs.

In addition, this Technical Report serves as a first-time disclosure for mineral resources for the Caballo Blanco Project, together with appropriate commentary regarding the merits and possible limitations of such assumptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2 Data

A total of 128 drillholes and 19,644 underground channels in the database were supplied in electronic format by Santacruz for each of the deposits as shown in Table 14-1 through Table 14-4 which included 28 drillholes and 5, 520 channels for Colquechaquita, 60 drillholes and 6,272 channels for Reserva and, 40 drillholes and 7,852 channels for Tres Amigos. This included collars, downhole surveys, lithology data and assay data (i.e., Ag g/t, Pb%, Zn%, Fe%, As%). Validation and verification checks were performed during importation of data to ensure there were no overlapping intervals, typographic errors or anomalous entries. Anomalies and errors were validated and corrected. Figure 14-1 shows a plan view of the supplied drillholes and underground channel samples delineated by mine area.

**Table 14-1: Statistics for the Colquechaquita Deposit Database**

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Collar** | &nbsp;&nbsp;**Survey** | &nbsp;&nbsp;**Assay** | &nbsp;&nbsp;**Assay**<br> **Zn** | &nbsp;&nbsp;**Assay**<br> **Pb** | &nbsp;&nbsp;**Assay Ag** | &nbsp;&nbsp;**Assay**<br> **Fe** | &nbsp;&nbsp;**Lith** | &nbsp;&nbsp;**Struct** |
| &nbsp;&nbsp;# | &nbsp;&nbsp;5578 | &nbsp;&nbsp;5903 | &nbsp;&nbsp;7625 | &nbsp;&nbsp;7625 | &nbsp;&nbsp;7504 | &nbsp;&nbsp;7625 | &nbsp;&nbsp;464 | &nbsp;&nbsp;724 | &nbsp;&nbsp;1099 |

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**Table 14-2: Statistics for the Reserva Deposit Database**

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|  | &nbsp;&nbsp;**Collar** | &nbsp;&nbsp;**Survey** | &nbsp;&nbsp;**Assay** | &nbsp;&nbsp;**Assay Zn** | &nbsp;&nbsp;**Assay Pb** | &nbsp;&nbsp;**Assay Ag** | &nbsp;&nbsp;**Assay Fe** | &nbsp;&nbsp;**Assay As** | &nbsp;&nbsp;**Lith** | &nbsp;&nbsp;**Struct** |
| &nbsp;&nbsp;# | &nbsp;&nbsp;6333 | &nbsp;&nbsp;7318 | &nbsp;&nbsp;12917 | &nbsp;&nbsp;12917 | &nbsp;&nbsp;12917 | &nbsp;&nbsp;12917 | &nbsp;&nbsp;881 | &nbsp;&nbsp;19 | &nbsp;&nbsp;5779 | &nbsp;&nbsp;6731 |

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**Table 14-3: Statistics for the Tres Amigos Deposit Database**

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|  | &nbsp;&nbsp;**Collar** | &nbsp;&nbsp;**Survey** | &nbsp;&nbsp;**Assay** | &nbsp;&nbsp;**Assay Zn** | &nbsp;&nbsp;**Assay Pb** | &nbsp;&nbsp;**Assay Ag** | &nbsp;&nbsp;**Assay Fe** | &nbsp;&nbsp;**Lith** | &nbsp;&nbsp;**Struct** |
| &nbsp;&nbsp;# | &nbsp;&nbsp;7892 | &nbsp;&nbsp;8191 | &nbsp;&nbsp;9834 | &nbsp;&nbsp;9834 | &nbsp;&nbsp;9834 | &nbsp;&nbsp;9834 | &nbsp;&nbsp;1094 | &nbsp;&nbsp;2838 | &nbsp;&nbsp;3818 |

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**Table 14-4: Summary Statistics for the Caballo Blanco Project Database**

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|  | &nbsp;&nbsp;**Collar** | &nbsp;&nbsp;**Survey** | &nbsp;&nbsp;**Assay** | &nbsp;&nbsp;**Assay Zn** | &nbsp;&nbsp;**Assay Pb** | &nbsp;&nbsp;**Assay Ag** | &nbsp;&nbsp;**Assay Fe** | &nbsp;&nbsp;**Assay As** | &nbsp;&nbsp;**Lith** | &nbsp;&nbsp;**Struct** |
| &nbsp;&nbsp;# | &nbsp;&nbsp;19803 | &nbsp;&nbsp;21412 | &nbsp;&nbsp;30376 | &nbsp;&nbsp;30376 | &nbsp;&nbsp;30255 | &nbsp;&nbsp;30376 | &nbsp;&nbsp;2439 | &nbsp;&nbsp;19 | &nbsp;&nbsp;9341 | &nbsp;&nbsp;11648 |

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**Figure 14-1: Plan View of Caballo Blanco Drillholes and Channel Samples**

![](ex99-28_069.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.1 Geology
 Model

Solid models (Figure 14-2 through Figure 14-4) were created within LeapFrog<sup>TM</sup> from drillhole intersections based on a combination of lithology, grades and site knowledge. It is important to note that the resource estimate includes three mines and related deposits which have twenty-nine individual veins that constitute the Caballo Blanco Project which has been producing for many years. This means that a great deal is known about the mineralized structures such that there is a high level of confidence in the location, orientation and dimensions of the modelled geological domains.

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**Figure 14-2: Plan View of Caballo Blanco Mineralized Zones and Drillholes**

![](ex99-28_070.jpg)

**Figure 14-3: Long Section View of Colquechaquita Mineralized Zones and Drillholes Looking West**

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**Figure 14-4: Long Section View of Reserva Mineralized Zones and Drillholes Looking West**

**Figure 14-5: Long Section View of Tres Amigos Mineralized Zones and Drillholes Looking West**

![](ex99-28_073.jpg)

All zones were modelled based on current drilling and assay data using LeapFrog<sup>TM</sup> and then imported into MineSight<sup>TM</sup> for interpretation and refinement. Intersections were inspected, and the solids were then manually adjusted to match the drill intercepts. Once the solid model imported, they were used to code the drillhole assays and composites for subsequent statistical and geostatistical analysis. The solid zones were used to constrain the block model by matching assays to those within the zones. The orientation and ranges (distances) used for search ellipsoids in the estimation process were derived from strike and dip of the mineralized zone, site knowledge and on-site observations by Santacruz geological staff.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3 Data
 Analysis

Each of the veins within the Caballo Blanco deposit is identified and individually coded as shown in Table 14-5.

**Table 14-5: Vein Codes and Descriptions for the Caballo Blanco Project by Mine**

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| &nbsp;&nbsp;**Vein Code** | &nbsp;&nbsp;**Vein Name** |
| &nbsp;&nbsp;**Colquechaquita Mine** | &nbsp;&nbsp;**Colquechaquita Mine** |
| &nbsp;&nbsp;**1000** | &nbsp;&nbsp;Rosario |
| &nbsp;&nbsp;**1001** | &nbsp;&nbsp;Wendy |
| &nbsp;&nbsp;**1002** | &nbsp;&nbsp;Wendy Techo |
| &nbsp;&nbsp;**1005** | &nbsp;&nbsp;Rosario Techo |
| &nbsp;&nbsp;**1006** | &nbsp;&nbsp;Ramo Rosario |
| &nbsp;&nbsp;**1007** | &nbsp;&nbsp;VN1 |
| &nbsp;&nbsp;**1008** | &nbsp;&nbsp;Cabeceras |
| &nbsp;&nbsp;**1009** | &nbsp;&nbsp;Blanquita |
| &nbsp;&nbsp;**Reserva Mine** | &nbsp;&nbsp;**Reserva Mine** |
| &nbsp;&nbsp;**1010** | &nbsp;&nbsp;Viviana |
| &nbsp;&nbsp;**1011** | &nbsp;&nbsp;Karina |
| &nbsp;&nbsp;**1012** | &nbsp;&nbsp;Camila |
| &nbsp;&nbsp;**1014** | &nbsp;&nbsp;Karina_1 |
| &nbsp;&nbsp;**1016** | &nbsp;&nbsp;Ojal_V |
| &nbsp;&nbsp;**1019** | &nbsp;&nbsp;Ramo2 |
| &nbsp;&nbsp;**Tres Amigos Mine** | &nbsp;&nbsp;**Tres Amigos Mine** |
| &nbsp;&nbsp;**1020** | &nbsp;&nbsp;Catalina |
| &nbsp;&nbsp;**1021** | &nbsp;&nbsp;Ramo |
| &nbsp;&nbsp;**1022** | &nbsp;&nbsp;Daniela |
| &nbsp;&nbsp;**1023** | &nbsp;&nbsp;Milagros |
| &nbsp;&nbsp;**1024** | &nbsp;&nbsp;Central |
| &nbsp;&nbsp;**1025** | &nbsp;&nbsp;Central Este |
| &nbsp;&nbsp;**1026** | &nbsp;&nbsp;Ramo Central II |
| &nbsp;&nbsp;**1028** | &nbsp;&nbsp;Ramo Central Este |
| &nbsp;&nbsp;**1029** | &nbsp;&nbsp;Milagros Este |
| &nbsp;&nbsp;**1030** | &nbsp;&nbsp;Erlinda |
| &nbsp;&nbsp;**1031** | &nbsp;&nbsp;Carmen |
| &nbsp;&nbsp;**1032** | &nbsp;&nbsp;Tatiana |
| &nbsp;&nbsp;**1038** | &nbsp;&nbsp;nn |
| &nbsp;&nbsp;**1042** | &nbsp;&nbsp;Ramo Oeste |
| &nbsp;&nbsp;**1044** | &nbsp;&nbsp;Tatiana |
| &nbsp;&nbsp;**1045** | &nbsp;&nbsp;Estacion |

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The database was then numerically coded using these individual mineralized solids. Furthermore, the database was then inspected and manually adjusted to ensure accuracy of zonal intercepts. Table 14-6 through Table 14-8 show the statistics for the silver, lead and zinc assays for Reserva, Colquechaquita and Tres Amigos, respectively.

Note that all the vein domains possess a relatively low degree of variability which is evidenced by the low Coefficient of Variation (CV) which is a unit independent quantitative measure of variability. With CV's being quite low at values of <2 with only two veins within any of the deposits having a CV = 1.9.

The Reserva deposit has modest grades in comparison to other deposits with modest mean grades of 14.63% zinc, 2.03% lead and 161 g/t silver and relatively low levels of variability. However, there are a small number of very high grades with maximums of up to 54% zinc, 48.95% lead and 4,404 g/t silver which should be addressed through a prudent outlier limiting strategy.

**Table 14-6: Statistics Silver, Lead and Zinc for the Reserva Deposit by Vein**

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Vein#** | &nbsp;&nbsp;**#** | &nbsp;&nbsp;**Length**<br> **(m)** | &nbsp;&nbsp;**Min** | &nbsp;&nbsp;**Max** | &nbsp;&nbsp;**Mean** | &nbsp;&nbsp;**1<sup>st</sup> Q** | &nbsp;&nbsp;**Median** | &nbsp;&nbsp;**3<sup>rd</sup> Q** | &nbsp;&nbsp;**SD** | &nbsp;&nbsp;**Var** | &nbsp;&nbsp;**CV** |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1000** | &nbsp;&nbsp;8742 | &nbsp;&nbsp;5613.02 | &nbsp;&nbsp;0 | &nbsp;&nbsp;54 | &nbsp;&nbsp;14.82 | &nbsp;&nbsp;5.03 | &nbsp;&nbsp;13.44 | &nbsp;&nbsp;22.13 | &nbsp;&nbsp;11.11 | &nbsp;&nbsp;123.36 | &nbsp;&nbsp;0.7 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1001** | &nbsp;&nbsp;854 | &nbsp;&nbsp;461.1 | &nbsp;&nbsp;0.046 | &nbsp;&nbsp;51.57 | &nbsp;&nbsp;11.27 | &nbsp;&nbsp;4.58 | &nbsp;&nbsp;9.85 | &nbsp;&nbsp;16.54 | &nbsp;&nbsp;8.32 | &nbsp;&nbsp;69.25 | &nbsp;&nbsp;0.7 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1002** | &nbsp;&nbsp;1117 | &nbsp;&nbsp;451.88 | &nbsp;&nbsp;0.01 | &nbsp;&nbsp;47.35 | &nbsp;&nbsp;15.38 | &nbsp;&nbsp;7.03 | &nbsp;&nbsp;13.64 | &nbsp;&nbsp;21.98 | &nbsp;&nbsp;10.81 | &nbsp;&nbsp;116.84 | &nbsp;&nbsp;0.7 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1005** | &nbsp;&nbsp;29 | &nbsp;&nbsp;17.26 | &nbsp;&nbsp;1.045 | &nbsp;&nbsp;31.02 | &nbsp;&nbsp;8.68 | &nbsp;&nbsp;5.55 | &nbsp;&nbsp;7.60 | &nbsp;&nbsp;10.92 | &nbsp;&nbsp;6.24 | &nbsp;&nbsp;38.95 | &nbsp;&nbsp;0.7 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1006** | &nbsp;&nbsp;86 | &nbsp;&nbsp;30.45 | &nbsp;&nbsp;0.25 | &nbsp;&nbsp;46.32 | &nbsp;&nbsp;22.40 | &nbsp;&nbsp;15.24 | &nbsp;&nbsp;23.65 | &nbsp;&nbsp;31.42 | &nbsp;&nbsp;11.33 | &nbsp;&nbsp;128.45 | &nbsp;&nbsp;0.5 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1007** | &nbsp;&nbsp;9 | &nbsp;&nbsp;2.63 | &nbsp;&nbsp;0.456 | &nbsp;&nbsp;26.9 | &nbsp;&nbsp;9.81 | &nbsp;&nbsp;6.13 | &nbsp;&nbsp;8.28 | &nbsp;&nbsp;11.65 | &nbsp;&nbsp;7.10 | &nbsp;&nbsp;50.46 | &nbsp;&nbsp;0.7 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1008** | &nbsp;&nbsp;230 | &nbsp;&nbsp;103.29 | &nbsp;&nbsp;0.11 | &nbsp;&nbsp;48.28 | &nbsp;&nbsp;13.08 | &nbsp;&nbsp;7.06 | &nbsp;&nbsp;11.85 | &nbsp;&nbsp;18.73 | &nbsp;&nbsp;8.27 | &nbsp;&nbsp;68.33 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1009** | &nbsp;&nbsp;27 | &nbsp;&nbsp;17.56 | &nbsp;&nbsp;1.83 | &nbsp;&nbsp;41.46 | &nbsp;&nbsp;25.49 | &nbsp;&nbsp;12.84 | &nbsp;&nbsp;30.42 | &nbsp;&nbsp;34.89 | &nbsp;&nbsp;12.52 | &nbsp;&nbsp;156.70 | &nbsp;&nbsp;0.5 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;11094 | &nbsp;&nbsp;6697.19 | &nbsp;&nbsp;0 | &nbsp;&nbsp;**54** | &nbsp;&nbsp;**14.63** | &nbsp;&nbsp;5.17 | &nbsp;&nbsp;13.10 | &nbsp;&nbsp;21.79 | &nbsp;&nbsp;10.94 | &nbsp;&nbsp;119.78 | &nbsp;&nbsp;**0.7** |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**All** | &nbsp;&nbsp;12908 | &nbsp;&nbsp;7572.40 | &nbsp;&nbsp;0 | &nbsp;&nbsp;54 | &nbsp;&nbsp;13.25 | &nbsp;&nbsp;2.98 | &nbsp;&nbsp;11.41 | &nbsp;&nbsp;20.74 | &nbsp;&nbsp;11.20 | &nbsp;&nbsp;125.50 | &nbsp;&nbsp;0.8 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1000** | &nbsp;&nbsp;8742 | &nbsp;&nbsp;5613.02 | &nbsp;&nbsp;0 | &nbsp;&nbsp;48.95 | &nbsp;&nbsp;1.96 | &nbsp;&nbsp;0.21 | &nbsp;&nbsp;0.66 | &nbsp;&nbsp;2.14 | &nbsp;&nbsp;3.73 | &nbsp;&nbsp;13.93 | &nbsp;&nbsp;**1.9** |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1001** | &nbsp;&nbsp;854 | &nbsp;&nbsp;461.1 | &nbsp;&nbsp;0.01 | &nbsp;&nbsp;33.32 | &nbsp;&nbsp;2.33 | &nbsp;&nbsp;0.31 | &nbsp;&nbsp;1.01 | &nbsp;&nbsp;2.90 | &nbsp;&nbsp;3.53 | &nbsp;&nbsp;12.45 | &nbsp;&nbsp;1.5 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1002** | &nbsp;&nbsp;1117 | &nbsp;&nbsp;451.88 | &nbsp;&nbsp;0 | &nbsp;&nbsp;35.12 | &nbsp;&nbsp;2.34 | &nbsp;&nbsp;0.43 | &nbsp;&nbsp;1.14 | &nbsp;&nbsp;2.78 | &nbsp;&nbsp;3.20 | &nbsp;&nbsp;10.25 | &nbsp;&nbsp;1.4 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1005** | &nbsp;&nbsp;29 | &nbsp;&nbsp;17.26 | &nbsp;&nbsp;0.18 | &nbsp;&nbsp;21.15 | &nbsp;&nbsp;2.45 | &nbsp;&nbsp;0.98 | &nbsp;&nbsp;1.81 | &nbsp;&nbsp;2.89 | &nbsp;&nbsp;3.49 | &nbsp;&nbsp;12.15 | &nbsp;&nbsp;1.4 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1006** | &nbsp;&nbsp;86 | &nbsp;&nbsp;30.45 | &nbsp;&nbsp;0.04 | &nbsp;&nbsp;8.53 | &nbsp;&nbsp;0.81 | &nbsp;&nbsp;0.15 | &nbsp;&nbsp;0.42 | &nbsp;&nbsp;0.91 | &nbsp;&nbsp;1.26 | &nbsp;&nbsp;1.58 | &nbsp;&nbsp;1.6 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1007** | &nbsp;&nbsp;9 | &nbsp;&nbsp;2.63 | &nbsp;&nbsp;0.308 | &nbsp;&nbsp;10.75 | &nbsp;&nbsp;2.86 | &nbsp;&nbsp;0.33 | &nbsp;&nbsp;0.45 | &nbsp;&nbsp;2.28 | &nbsp;&nbsp;3.98 | &nbsp;&nbsp;15.82 | &nbsp;&nbsp;1.4 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1008** | &nbsp;&nbsp;230 | &nbsp;&nbsp;103.29 | &nbsp;&nbsp;0.04 | &nbsp;&nbsp;22.48 | &nbsp;&nbsp;3.63 | &nbsp;&nbsp;1.21 | &nbsp;&nbsp;2.36 | &nbsp;&nbsp;4.44 | &nbsp;&nbsp;3.90 | &nbsp;&nbsp;15.18 | &nbsp;&nbsp;1.1 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1009** | &nbsp;&nbsp;27 | &nbsp;&nbsp;17.56 | &nbsp;&nbsp;0.09 | &nbsp;&nbsp;16.75 | &nbsp;&nbsp;2.74 | &nbsp;&nbsp;0.21 | &nbsp;&nbsp;1.51 | &nbsp;&nbsp;2.39 | &nbsp;&nbsp;3.74 | &nbsp;&nbsp;13.97 | &nbsp;&nbsp;1.4 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;11094 | &nbsp;&nbsp;6697.19 | &nbsp;&nbsp;0 | &nbsp;&nbsp;**48.95** | &nbsp;&nbsp;**2.03** | &nbsp;&nbsp;0.23 | &nbsp;&nbsp;0.73 | &nbsp;&nbsp;2.28 | &nbsp;&nbsp;3.69 | &nbsp;&nbsp;13.60 | &nbsp;&nbsp;**1.8** |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**All** | &nbsp;&nbsp;12908 | &nbsp;&nbsp;7572.40 | &nbsp;&nbsp;0 | &nbsp;&nbsp;48.95 | &nbsp;&nbsp;1.84 | &nbsp;&nbsp;0.18 | &nbsp;&nbsp;0.57 | &nbsp;&nbsp;2.01 | &nbsp;&nbsp;3.53 | &nbsp;&nbsp;12.48 | &nbsp;&nbsp;1.9 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1000** | &nbsp;&nbsp;8742 | &nbsp;&nbsp;5613.02 | &nbsp;&nbsp;0 | &nbsp;&nbsp;4404 | &nbsp;&nbsp;158 | &nbsp;&nbsp;37 | &nbsp;&nbsp;91 | &nbsp;&nbsp;185 | &nbsp;&nbsp;233 | &nbsp;&nbsp;54411 | &nbsp;&nbsp;1.5 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1001** | &nbsp;&nbsp;854 | &nbsp;&nbsp;461.1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;1813 | &nbsp;&nbsp;172 | &nbsp;&nbsp;34 | &nbsp;&nbsp;103 | &nbsp;&nbsp;229 | &nbsp;&nbsp;210 | &nbsp;&nbsp;43964 | &nbsp;&nbsp;1.2 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1002** | &nbsp;&nbsp;1117 | &nbsp;&nbsp;451.88 | &nbsp;&nbsp;0 | &nbsp;&nbsp;2787 | &nbsp;&nbsp;146 | &nbsp;&nbsp;38 | &nbsp;&nbsp;90 | &nbsp;&nbsp;184 | &nbsp;&nbsp;181 | &nbsp;&nbsp;32679 | &nbsp;&nbsp;1.2 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1005** | &nbsp;&nbsp;29 | &nbsp;&nbsp;17.26 | &nbsp;&nbsp;15 | &nbsp;&nbsp;1095 | &nbsp;&nbsp;203 | &nbsp;&nbsp;48 | &nbsp;&nbsp;138 | &nbsp;&nbsp;258 | &nbsp;&nbsp;218 | &nbsp;&nbsp;47381 | &nbsp;&nbsp;1.1 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1006** | &nbsp;&nbsp;86 | &nbsp;&nbsp;30.45 | &nbsp;&nbsp;2.84 | &nbsp;&nbsp;3207 | &nbsp;&nbsp;261 | &nbsp;&nbsp;63 | &nbsp;&nbsp;150 | &nbsp;&nbsp;281 | &nbsp;&nbsp;416 | &nbsp;&nbsp;172901 | &nbsp;&nbsp;1.6 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1007** | &nbsp;&nbsp;9 | &nbsp;&nbsp;2.63 | &nbsp;&nbsp;13 | &nbsp;&nbsp;370 | &nbsp;&nbsp;138 | &nbsp;&nbsp;27 | &nbsp;&nbsp;55 | &nbsp;&nbsp;220 | &nbsp;&nbsp;133 | &nbsp;&nbsp;17733 | &nbsp;&nbsp;1.0 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1008** | &nbsp;&nbsp;230 | &nbsp;&nbsp;103.29 | &nbsp;&nbsp;5 | &nbsp;&nbsp;1676 | &nbsp;&nbsp;277 | &nbsp;&nbsp;82 | &nbsp;&nbsp;216 | &nbsp;&nbsp;410 | &nbsp;&nbsp;248 | &nbsp;&nbsp;61491 | &nbsp;&nbsp;0.9 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1009** | &nbsp;&nbsp;27 | &nbsp;&nbsp;17.56 | &nbsp;&nbsp;1.89 | &nbsp;&nbsp;3050 | &nbsp;&nbsp;245 | &nbsp;&nbsp;20 | &nbsp;&nbsp;172 | &nbsp;&nbsp;309 | &nbsp;&nbsp;475 | &nbsp;&nbsp;225911 | &nbsp;&nbsp;**1.9** |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;11094 | &nbsp;&nbsp;6697.19 | &nbsp;&nbsp;0 | &nbsp;&nbsp;**4404** | &nbsp;&nbsp;**161** | &nbsp;&nbsp;38 | &nbsp;&nbsp;93 | &nbsp;&nbsp;193 | &nbsp;&nbsp;232 | &nbsp;&nbsp;53596 | &nbsp;&nbsp;**1.4** |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**All** | &nbsp;&nbsp;12908 | &nbsp;&nbsp;7572.40 | &nbsp;&nbsp;0 | &nbsp;&nbsp;4404 | &nbsp;&nbsp;146 | &nbsp;&nbsp;26 | &nbsp;&nbsp;80 | &nbsp;&nbsp;175 | &nbsp;&nbsp;224 | &nbsp;&nbsp;50135 | &nbsp;&nbsp;1.5 |

---

The Colquechaquita deposit has modest grades in comparison to other deposits with modest mean grades of 14.63% zinc, 2.03% lead and 161 g/t silver and relatively low levels of variability. However, there are a small number of very high grades with maximums of up to 54% zinc, 48.95% lead and 4,404 g/t silver which should be addressed through a prudent outlier limiting strategy.

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-6

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|:---|:---|
| ![](logo_001.jpg) | ![](ex99-28_logo1.jpg) |

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**Table 14-7: Statistics Silver, Lead and Zinc for the Colquechaquita Deposit by Vein**

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Vein#** | &nbsp;&nbsp;**#** | &nbsp;&nbsp;**Length (m)** | &nbsp;&nbsp;**Min** | &nbsp;&nbsp;**Max** | &nbsp;&nbsp;**Mean** | &nbsp;&nbsp;**1<sup>st</sup> Q** | &nbsp;&nbsp;**Median** | &nbsp;&nbsp;**3<sup>rd</sup> Q** | &nbsp;&nbsp;**SD** | &nbsp;&nbsp;**Var** | &nbsp;&nbsp;**CV** |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1010** | &nbsp;&nbsp;4511 | &nbsp;&nbsp;3559.32 | &nbsp;&nbsp;0 | &nbsp;&nbsp;52.58 | &nbsp;&nbsp;17.24 | &nbsp;&nbsp;9.21 | &nbsp;&nbsp;15.51 | &nbsp;&nbsp;23.56 | &nbsp;&nbsp;10.51 | &nbsp;&nbsp;110.41 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1011** | &nbsp;&nbsp;2153 | &nbsp;&nbsp;2519.93 | &nbsp;&nbsp;0 | &nbsp;&nbsp;36.32 | &nbsp;&nbsp;7.58 | &nbsp;&nbsp;3.20 | &nbsp;&nbsp;6.48 | &nbsp;&nbsp;10.54 | &nbsp;&nbsp;5.84 | &nbsp;&nbsp;34.11 | &nbsp;&nbsp;0.8 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1012** | &nbsp;&nbsp;313 | &nbsp;&nbsp;216.84 | &nbsp;&nbsp;0 | &nbsp;&nbsp;40.33 | &nbsp;&nbsp;12.02 | &nbsp;&nbsp;5.76 | &nbsp;&nbsp;10.09 | &nbsp;&nbsp;16.72 | &nbsp;&nbsp;8.06 | &nbsp;&nbsp;64.99 | &nbsp;&nbsp;0.7 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1014** | &nbsp;&nbsp;42 | &nbsp;&nbsp;59.83 | &nbsp;&nbsp;0.17 | &nbsp;&nbsp;15.17 | &nbsp;&nbsp;7.65 | &nbsp;&nbsp;3.23 | &nbsp;&nbsp;8.27 | &nbsp;&nbsp;11.39 | &nbsp;&nbsp;4.53 | &nbsp;&nbsp;20.48 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1016** | &nbsp;&nbsp;21 | &nbsp;&nbsp;9.25 | &nbsp;&nbsp;6.61 | &nbsp;&nbsp;43.67 | &nbsp;&nbsp;22.74 | &nbsp;&nbsp;14.70 | &nbsp;&nbsp;20.57 | &nbsp;&nbsp;25.86 | &nbsp;&nbsp;11.06 | &nbsp;&nbsp;122.36 | &nbsp;&nbsp;0.5 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1019** | &nbsp;&nbsp;6 | &nbsp;&nbsp;2.58 | &nbsp;&nbsp;8.65 | &nbsp;&nbsp;36.47 | &nbsp;&nbsp;19.33 | &nbsp;&nbsp;8.65 | &nbsp;&nbsp;14.66 | &nbsp;&nbsp;26.16 | &nbsp;&nbsp;9.98 | &nbsp;&nbsp;99.61 | &nbsp;&nbsp;0.5 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;7046 | &nbsp;&nbsp;6367.75 | &nbsp;&nbsp;0 | &nbsp;&nbsp;**52.58** | &nbsp;&nbsp;**13.16** | &nbsp;&nbsp;5.57 | &nbsp;&nbsp;10.80 | &nbsp;&nbsp;18.35 | &nbsp;&nbsp;10.00 | &nbsp;&nbsp;99.91 | &nbsp;&nbsp;**0.8** |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**All** | &nbsp;&nbsp;7619 | &nbsp;&nbsp;6782.04 | &nbsp;&nbsp;0 | &nbsp;&nbsp;52.58 | &nbsp;&nbsp;12.64 | &nbsp;&nbsp;4.97 | &nbsp;&nbsp;10.36 | &nbsp;&nbsp;17.88 | &nbsp;&nbsp;10.10 | &nbsp;&nbsp;101.95 | &nbsp;&nbsp;0.8 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1010** | &nbsp;&nbsp;4511 | &nbsp;&nbsp;3559.32 | &nbsp;&nbsp;0 | &nbsp;&nbsp;71.91 | &nbsp;&nbsp;3.14 | &nbsp;&nbsp;0.92 | &nbsp;&nbsp;1.87 | &nbsp;&nbsp;3.73 | &nbsp;&nbsp;3.99 | &nbsp;&nbsp;15.93 | &nbsp;&nbsp;1.3 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1011** | &nbsp;&nbsp;2153 | &nbsp;&nbsp;2519.93 | &nbsp;&nbsp;0 | &nbsp;&nbsp;51.87 | &nbsp;&nbsp;4.58 | &nbsp;&nbsp;1.24 | &nbsp;&nbsp;2.92 | &nbsp;&nbsp;6.25 | &nbsp;&nbsp;4.97 | &nbsp;&nbsp;24.66 | &nbsp;&nbsp;1.1 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1012** | &nbsp;&nbsp;313 | &nbsp;&nbsp;216.84 | &nbsp;&nbsp;0 | &nbsp;&nbsp;47.61 | &nbsp;&nbsp;5.82 | &nbsp;&nbsp;1.75 | &nbsp;&nbsp;3.77 | &nbsp;&nbsp;8.09 | &nbsp;&nbsp;6.04 | &nbsp;&nbsp;36.51 | &nbsp;&nbsp;1.0 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1014** | &nbsp;&nbsp;42 | &nbsp;&nbsp;59.83 | &nbsp;&nbsp;0.07 | &nbsp;&nbsp;9.40 | &nbsp;&nbsp;3.44 | &nbsp;&nbsp;0.95 | &nbsp;&nbsp;2.88 | &nbsp;&nbsp;5.58 | &nbsp;&nbsp;2.85 | &nbsp;&nbsp;8.13 | &nbsp;&nbsp;0.8 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1016** | &nbsp;&nbsp;21 | &nbsp;&nbsp;9.25 | &nbsp;&nbsp;0.38 | &nbsp;&nbsp;19.69 | &nbsp;&nbsp;2.89 | &nbsp;&nbsp;1.38 | &nbsp;&nbsp;2.52 | &nbsp;&nbsp;3.51 | &nbsp;&nbsp;2.99 | &nbsp;&nbsp;8.93 | &nbsp;&nbsp;1.0 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1019** | &nbsp;&nbsp;6 | &nbsp;&nbsp;2.58 | &nbsp;&nbsp;0.67 | &nbsp;&nbsp;19.08 | &nbsp;&nbsp;7.10 | &nbsp;&nbsp;0.67 | &nbsp;&nbsp;5.52 | &nbsp;&nbsp;8.59 | &nbsp;&nbsp;6.90 | &nbsp;&nbsp;47.65 | &nbsp;&nbsp;1.0 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;7046 | &nbsp;&nbsp;6367.75 | &nbsp;&nbsp;0 | &nbsp;&nbsp;**71.91** | &nbsp;&nbsp;**3.81** | &nbsp;&nbsp;1.03 | &nbsp;&nbsp;2.25 | &nbsp;&nbsp;4.74 | &nbsp;&nbsp;4.54 | &nbsp;&nbsp;20.64 | &nbsp;&nbsp;**1.2** |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**All** | &nbsp;&nbsp;7502 | &nbsp;&nbsp;6629.84 | &nbsp;&nbsp;0 | &nbsp;&nbsp;72 | &nbsp;&nbsp;4 | &nbsp;&nbsp;1 | &nbsp;&nbsp;2 | &nbsp;&nbsp;5 | &nbsp;&nbsp;5 | &nbsp;&nbsp;20 | &nbsp;&nbsp;1.2 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1010** | &nbsp;&nbsp;4511 | &nbsp;&nbsp;3559.32 | &nbsp;&nbsp;0 | &nbsp;&nbsp;9735 | &nbsp;&nbsp;343 | &nbsp;&nbsp;84 | &nbsp;&nbsp;164 | &nbsp;&nbsp;374 | &nbsp;&nbsp;543 | &nbsp;&nbsp;294476 | &nbsp;&nbsp;1.6 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1011** | &nbsp;&nbsp;2153 | &nbsp;&nbsp;2519.93 | &nbsp;&nbsp;0 | &nbsp;&nbsp;6054 | &nbsp;&nbsp;390 | &nbsp;&nbsp;131 | &nbsp;&nbsp;285 | &nbsp;&nbsp;540 | &nbsp;&nbsp;430 | &nbsp;&nbsp;184830 | &nbsp;&nbsp;1.1 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1012** | &nbsp;&nbsp;313 | &nbsp;&nbsp;216.84 | &nbsp;&nbsp;0 | &nbsp;&nbsp;3400 | &nbsp;&nbsp;393 | &nbsp;&nbsp;149 | &nbsp;&nbsp;275 | &nbsp;&nbsp;467 | &nbsp;&nbsp;423 | &nbsp;&nbsp;179297 | &nbsp;&nbsp;1.1 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1014** | &nbsp;&nbsp;42 | &nbsp;&nbsp;59.83 | &nbsp;&nbsp;16 | &nbsp;&nbsp;1269 | &nbsp;&nbsp;369 | &nbsp;&nbsp;137 | &nbsp;&nbsp;331 | &nbsp;&nbsp;545 | &nbsp;&nbsp;288 | &nbsp;&nbsp;83075 | &nbsp;&nbsp;0.8 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1016** | &nbsp;&nbsp;21 | &nbsp;&nbsp;9.25 | &nbsp;&nbsp;86 | &nbsp;&nbsp;1620 | &nbsp;&nbsp;285 | &nbsp;&nbsp;176 | &nbsp;&nbsp;234 | &nbsp;&nbsp;385 | &nbsp;&nbsp;232 | &nbsp;&nbsp;53707 | &nbsp;&nbsp;0.8 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1019** | &nbsp;&nbsp;6 | &nbsp;&nbsp;2.58 | &nbsp;&nbsp;56 | &nbsp;&nbsp;1062 | &nbsp;&nbsp;384 | &nbsp;&nbsp;67 | &nbsp;&nbsp;181 | &nbsp;&nbsp;439 | &nbsp;&nbsp;379 | &nbsp;&nbsp;143743 | &nbsp;&nbsp;1.0 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;7046 | &nbsp;&nbsp;6367.75 | &nbsp;&nbsp;0 | &nbsp;&nbsp;**9735** | &nbsp;&nbsp;**363** | &nbsp;&nbsp;97 | &nbsp;&nbsp;209 | &nbsp;&nbsp;454 | &nbsp;&nbsp;495 | &nbsp;&nbsp;245328 | &nbsp;&nbsp;**1.4** |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**All** | &nbsp;&nbsp;7619 | &nbsp;&nbsp;6782.04 | &nbsp;&nbsp;0 | &nbsp;&nbsp;9735 | &nbsp;&nbsp;347 | &nbsp;&nbsp;86 | &nbsp;&nbsp;195 | &nbsp;&nbsp;437 | &nbsp;&nbsp;489 | &nbsp;&nbsp;239159 | &nbsp;&nbsp;1.4 |

---

It is clear that the Caballo Blanco Project is extremely high grade and although not demonstrating high levels of variability, with grades up to 60.8% zinc, 61.6% lead and 17,446 g/t silver, it is prudent to ensure that extremely high grades do not unduly over-influence the resource as a whole. So, the goal of compositing and grade cutting will be to temper the effect of extreme grades so as not to spread or smear those outliers beyond reasonable distances.

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-7

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|:---|:---|
| ![](logo_001.jpg) | ![](ex99-28_logo1.jpg) |

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**Table 14-8: Statistics Silver, Lead and Zinc for the Tres Amigos Deposit by Vein**

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Vein#** | &nbsp;&nbsp;**#** | &nbsp;&nbsp;**Length**<br> **(m)** | &nbsp;&nbsp;**Min** | &nbsp;&nbsp;**Max** | &nbsp;&nbsp;**Mean** | &nbsp;&nbsp;**1<sup>st</sup> Q** | &nbsp;&nbsp;**Median** | &nbsp;&nbsp;**3<sup>rd</sup> Q** | &nbsp;&nbsp;**SD** | &nbsp;&nbsp;**Var** | &nbsp;&nbsp;**CV** |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1020** | &nbsp;&nbsp;1303 | &nbsp;&nbsp;508.8 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;64.33 | &nbsp;&nbsp;12.25 | &nbsp;&nbsp;6.16 | &nbsp;&nbsp;11.64 | &nbsp;&nbsp;17.00 | &nbsp;&nbsp;8.18 | &nbsp;&nbsp;66.99 | &nbsp;&nbsp;0.7 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1021** | &nbsp;&nbsp;1798 | &nbsp;&nbsp;696.73 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;52.13 | &nbsp;&nbsp;27.63 | &nbsp;&nbsp;18.99 | &nbsp;&nbsp;29.12 | &nbsp;&nbsp;37.32 | &nbsp;&nbsp;12.23 | &nbsp;&nbsp;149.62 | &nbsp;&nbsp;0.4 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1022** | &nbsp;&nbsp;1740 | &nbsp;&nbsp;653 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;58.19 | &nbsp;&nbsp;18.71 | &nbsp;&nbsp;10.48 | &nbsp;&nbsp;17.83 | &nbsp;&nbsp;25.69 | &nbsp;&nbsp;10.72 | &nbsp;&nbsp;114.91 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1023** | &nbsp;&nbsp;1444 | &nbsp;&nbsp;368.03 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;52.16 | &nbsp;&nbsp;17.68 | &nbsp;&nbsp;9.84 | &nbsp;&nbsp;16.72 | &nbsp;&nbsp;24.66 | &nbsp;&nbsp;10.20 | &nbsp;&nbsp;104.05 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1024** | &nbsp;&nbsp;1069 | &nbsp;&nbsp;426.773 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;47.85 | &nbsp;&nbsp;11.94 | &nbsp;&nbsp;5.19 | &nbsp;&nbsp;10.98 | &nbsp;&nbsp;17.51 | &nbsp;&nbsp;8.27 | &nbsp;&nbsp;68.35 | &nbsp;&nbsp;0.7 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1025** | &nbsp;&nbsp;331 | &nbsp;&nbsp;105.36 | &nbsp;&nbsp;0.2 | &nbsp;&nbsp;40.45 | &nbsp;&nbsp;11.61 | &nbsp;&nbsp;7.63 | &nbsp;&nbsp;10.36 | &nbsp;&nbsp;15.31 | &nbsp;&nbsp;6.78 | &nbsp;&nbsp;45.99 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1026** | &nbsp;&nbsp;481 | &nbsp;&nbsp;146.14 | &nbsp;&nbsp;0.2 | &nbsp;&nbsp;48.20 | &nbsp;&nbsp;15.61 | &nbsp;&nbsp;8.04 | &nbsp;&nbsp;14.33 | &nbsp;&nbsp;21.45 | &nbsp;&nbsp;10.02 | &nbsp;&nbsp;100.44 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1027** | &nbsp;&nbsp;26 | &nbsp;&nbsp;6.15 | &nbsp;&nbsp;8.59 | &nbsp;&nbsp;35.46 | &nbsp;&nbsp;21.44 | &nbsp;&nbsp;14.83 | &nbsp;&nbsp;21.86 | &nbsp;&nbsp;27.66 | &nbsp;&nbsp;7.86 | &nbsp;&nbsp;61.78 | &nbsp;&nbsp;0.4 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1029** | &nbsp;&nbsp;102 | &nbsp;&nbsp;30.63 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;36.03 | &nbsp;&nbsp;12.19 | &nbsp;&nbsp;6.50 | &nbsp;&nbsp;12.31 | &nbsp;&nbsp;17.30 | &nbsp;&nbsp;7.68 | &nbsp;&nbsp;58.92 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1030** | &nbsp;&nbsp;21 | &nbsp;&nbsp;3.1 | &nbsp;&nbsp;1.44 | &nbsp;&nbsp;20.93 | &nbsp;&nbsp;6.90 | &nbsp;&nbsp;5.30 | &nbsp;&nbsp;6.00 | &nbsp;&nbsp;7.69 | &nbsp;&nbsp;3.60 | &nbsp;&nbsp;12.98 | &nbsp;&nbsp;0.5 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1031** | &nbsp;&nbsp;14 | &nbsp;&nbsp;4.15 | &nbsp;&nbsp;1.6 | &nbsp;&nbsp;18.60 | &nbsp;&nbsp;10.23 | &nbsp;&nbsp;6.86 | &nbsp;&nbsp;9.43 | &nbsp;&nbsp;12.60 | &nbsp;&nbsp;4.53 | &nbsp;&nbsp;20.56 | &nbsp;&nbsp;0.4 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1032** | &nbsp;&nbsp;121 | &nbsp;&nbsp;35.9 | &nbsp;&nbsp;0.51 | &nbsp;&nbsp;44.44 | &nbsp;&nbsp;15.54 | &nbsp;&nbsp;8.75 | &nbsp;&nbsp;14.73 | &nbsp;&nbsp;21.63 | &nbsp;&nbsp;8.16 | &nbsp;&nbsp;66.66 | &nbsp;&nbsp;0.5 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1038** | &nbsp;&nbsp;5 | &nbsp;&nbsp;1.6 | &nbsp;&nbsp;7.46 | &nbsp;&nbsp;17.35 | &nbsp;&nbsp;12.55 | &nbsp;&nbsp;10.37 | &nbsp;&nbsp;10.71 | &nbsp;&nbsp;15.58 | &nbsp;&nbsp;3.61 | &nbsp;&nbsp;13.02 | &nbsp;&nbsp;0.3 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1042** | &nbsp;&nbsp;4 | &nbsp;&nbsp;0.92 | &nbsp;&nbsp;0.164 | &nbsp;&nbsp;20.50 | &nbsp;&nbsp;8.92 | &nbsp;&nbsp;0.16 | &nbsp;&nbsp;4.91 | &nbsp;&nbsp;13.35 | &nbsp;&nbsp;8.14 | &nbsp;&nbsp;66.33 | &nbsp;&nbsp;0.9 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1044** | &nbsp;&nbsp;88 | &nbsp;&nbsp;24.38 | &nbsp;&nbsp;0.2 | &nbsp;&nbsp;37.42 | &nbsp;&nbsp;14.23 | &nbsp;&nbsp;10.90 | &nbsp;&nbsp;14.02 | &nbsp;&nbsp;16.74 | &nbsp;&nbsp;6.31 | &nbsp;&nbsp;39.75 | &nbsp;&nbsp;0.4 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**1045** | &nbsp;&nbsp;10 | &nbsp;&nbsp;4.79 | &nbsp;&nbsp;4.76 | &nbsp;&nbsp;**32.52** | &nbsp;&nbsp;**18.49** | &nbsp;&nbsp;14.55 | &nbsp;&nbsp;21.16 | &nbsp;&nbsp;21.79 | &nbsp;&nbsp;7.04 | &nbsp;&nbsp;49.61 | &nbsp;&nbsp;**0.4** |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;8557 | &nbsp;&nbsp;3016.45 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;64.33 | &nbsp;&nbsp;18.03 | &nbsp;&nbsp;9.06 | &nbsp;&nbsp;16.17 | &nbsp;&nbsp;25.93 | &nbsp;&nbsp;11.68 | &nbsp;&nbsp;136.35 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**All** | &nbsp;&nbsp;9831 | &nbsp;&nbsp;3576.73 | &nbsp;&nbsp;0.003 | &nbsp;&nbsp;64.33 | &nbsp;&nbsp;15.48 | &nbsp;&nbsp;4.78 | &nbsp;&nbsp;13.55 | &nbsp;&nbsp;23.63 | &nbsp;&nbsp;12.37 | &nbsp;&nbsp;153.12 | &nbsp;&nbsp;0.8 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1020** | &nbsp;&nbsp;1303 | &nbsp;&nbsp;508.8 | &nbsp;&nbsp;7E-04 | &nbsp;&nbsp;62.32 | &nbsp;&nbsp;10.22 | &nbsp;&nbsp;2.07 | &nbsp;&nbsp;5.95 | &nbsp;&nbsp;14.71 | &nbsp;&nbsp;11.19 | &nbsp;&nbsp;125.13 | &nbsp;&nbsp;1.1 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1021** | &nbsp;&nbsp;1798 | &nbsp;&nbsp;696.73 | &nbsp;&nbsp;0.001 | &nbsp;&nbsp;52.58 | &nbsp;&nbsp;5.93 | &nbsp;&nbsp;1.30 | &nbsp;&nbsp;2.97 | &nbsp;&nbsp;7.88 | &nbsp;&nbsp;7.44 | &nbsp;&nbsp;55.41 | &nbsp;&nbsp;1.3 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1022** | &nbsp;&nbsp;1740 | &nbsp;&nbsp;653 | &nbsp;&nbsp;0.04 | &nbsp;&nbsp;66.49 | &nbsp;&nbsp;10.60 | &nbsp;&nbsp;2.11 | &nbsp;&nbsp;6.03 | &nbsp;&nbsp;16.36 | &nbsp;&nbsp;11.29 | &nbsp;&nbsp;127.40 | &nbsp;&nbsp;1.1 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1023** | &nbsp;&nbsp;1444 | &nbsp;&nbsp;368.03 | &nbsp;&nbsp;0.001 | &nbsp;&nbsp;65.10 | &nbsp;&nbsp;11.08 | &nbsp;&nbsp;1.45 | &nbsp;&nbsp;5.13 | &nbsp;&nbsp;17.32 | &nbsp;&nbsp;12.92 | &nbsp;&nbsp;167.05 | &nbsp;&nbsp;1.2 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1024** | &nbsp;&nbsp;1069 | &nbsp;&nbsp;426.773 | &nbsp;&nbsp;0.001 | &nbsp;&nbsp;41.62 | &nbsp;&nbsp;4.17 | &nbsp;&nbsp;0.98 | &nbsp;&nbsp;2.49 | &nbsp;&nbsp;5.19 | &nbsp;&nbsp;4.89 | &nbsp;&nbsp;23.89 | &nbsp;&nbsp;1.2 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1025** | &nbsp;&nbsp;331 | &nbsp;&nbsp;105.36 | &nbsp;&nbsp;0 | &nbsp;&nbsp;51.92 | &nbsp;&nbsp;6.43 | &nbsp;&nbsp;2.59 | &nbsp;&nbsp;4.24 | &nbsp;&nbsp;7.12 | &nbsp;&nbsp;7.39 | &nbsp;&nbsp;54.60 | &nbsp;&nbsp;1.1 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1026** | &nbsp;&nbsp;481 | &nbsp;&nbsp;146.14 | &nbsp;&nbsp;0.04 | &nbsp;&nbsp;46.23 | &nbsp;&nbsp;4.67 | &nbsp;&nbsp;0.98 | &nbsp;&nbsp;2.32 | &nbsp;&nbsp;5.65 | &nbsp;&nbsp;6.28 | &nbsp;&nbsp;39.43 | &nbsp;&nbsp;1.3 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1027** | &nbsp;&nbsp;26 | &nbsp;&nbsp;6.15 | &nbsp;&nbsp;1.51 | &nbsp;&nbsp;41.47 | &nbsp;&nbsp;9.45 | &nbsp;&nbsp;2.74 | &nbsp;&nbsp;4.57 | &nbsp;&nbsp;14.95 | &nbsp;&nbsp;10.11 | &nbsp;&nbsp;102.17 | &nbsp;&nbsp;1.1 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1029** | &nbsp;&nbsp;102 | &nbsp;&nbsp;30.63 | &nbsp;&nbsp;0.001 | &nbsp;&nbsp;43.21 | &nbsp;&nbsp;5.63 | &nbsp;&nbsp;1.48 | &nbsp;&nbsp;3.05 | &nbsp;&nbsp;7.17 | &nbsp;&nbsp;7.09 | &nbsp;&nbsp;50.21 | &nbsp;&nbsp;1.3 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1030** | &nbsp;&nbsp;21 | &nbsp;&nbsp;3.1 | &nbsp;&nbsp;0.78 | &nbsp;&nbsp;28.98 | &nbsp;&nbsp;10.09 | &nbsp;&nbsp;2.57 | &nbsp;&nbsp;6.68 | &nbsp;&nbsp;15.80 | &nbsp;&nbsp;8.77 | &nbsp;&nbsp;76.90 | &nbsp;&nbsp;0.9 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1031** | &nbsp;&nbsp;14 | &nbsp;&nbsp;4.15 | &nbsp;&nbsp;0.59 | &nbsp;&nbsp;32.73 | &nbsp;&nbsp;12.44 | &nbsp;&nbsp;8.05 | &nbsp;&nbsp;8.68 | &nbsp;&nbsp;17.64 | &nbsp;&nbsp;8.39 | &nbsp;&nbsp;70.33 | &nbsp;&nbsp;0.7 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1032** | &nbsp;&nbsp;121 | &nbsp;&nbsp;35.9 | &nbsp;&nbsp;0.25 | &nbsp;&nbsp;31.84 | &nbsp;&nbsp;5.54 | &nbsp;&nbsp;1.19 | &nbsp;&nbsp;2.84 | &nbsp;&nbsp;5.62 | &nbsp;&nbsp;7.23 | &nbsp;&nbsp;52.25 | &nbsp;&nbsp;1.3 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1038** | &nbsp;&nbsp;5 | &nbsp;&nbsp;1.6 | &nbsp;&nbsp;0.69 | &nbsp;&nbsp;5.42 | &nbsp;&nbsp;2.55 | &nbsp;&nbsp;1.36 | &nbsp;&nbsp;2.85 | &nbsp;&nbsp;3.50 | &nbsp;&nbsp;1.59 | &nbsp;&nbsp;2.52 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1042** | &nbsp;&nbsp;4 | &nbsp;&nbsp;0.92 | &nbsp;&nbsp;0.111 | &nbsp;&nbsp;8.52 | &nbsp;&nbsp;2.38 | &nbsp;&nbsp;0.11 | &nbsp;&nbsp;0.50 | &nbsp;&nbsp;1.89 | &nbsp;&nbsp;3.39 | &nbsp;&nbsp;11.46 | &nbsp;&nbsp;1.4 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1044** | &nbsp;&nbsp;88 | &nbsp;&nbsp;24.38 | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;46.79 | &nbsp;&nbsp;9.23 | &nbsp;&nbsp;2.86 | &nbsp;&nbsp;6.25 | &nbsp;&nbsp;13.63 | &nbsp;&nbsp;8.91 | &nbsp;&nbsp;79.42 | &nbsp;&nbsp;1.0 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**1045** | &nbsp;&nbsp;10 | &nbsp;&nbsp;4.79 | &nbsp;&nbsp;0.47 | &nbsp;&nbsp;14.44 | &nbsp;&nbsp;9.10 | &nbsp;&nbsp;4.83 | &nbsp;&nbsp;8.34 | &nbsp;&nbsp;12.58 | &nbsp;&nbsp;4.57 | &nbsp;&nbsp;20.86 | &nbsp;&nbsp;0.5 |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;8557 | &nbsp;&nbsp;3016.45 | &nbsp;&nbsp;0 | &nbsp;&nbsp;**66.49** | &nbsp;&nbsp;**8.04** | &nbsp;&nbsp;1.49 | &nbsp;&nbsp;3.92 | &nbsp;&nbsp;10.85 | &nbsp;&nbsp;9.93 | &nbsp;&nbsp;98.61 | &nbsp;&nbsp;**1.2** |
| &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**All** | &nbsp;&nbsp;9831 | &nbsp;&nbsp;3576.73 | &nbsp;&nbsp;0 | &nbsp;&nbsp;69.00 | &nbsp;&nbsp;6.92 | &nbsp;&nbsp;0.79 | &nbsp;&nbsp;2.97 | &nbsp;&nbsp;8.83 | &nbsp;&nbsp;9.58 | &nbsp;&nbsp;91.75 | &nbsp;&nbsp;1.4 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1020** | &nbsp;&nbsp;1303 | &nbsp;&nbsp;508.8 | &nbsp;&nbsp;0 | &nbsp;&nbsp;9590 | &nbsp;&nbsp;934 | &nbsp;&nbsp;156 | &nbsp;&nbsp;514 | &nbsp;&nbsp;1294 | &nbsp;&nbsp;1152 | &nbsp;&nbsp;1328074 | &nbsp;&nbsp;1.2 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1021** | &nbsp;&nbsp;1798 | &nbsp;&nbsp;696.73 | &nbsp;&nbsp;1 | &nbsp;&nbsp;21114 | &nbsp;&nbsp;1151 | &nbsp;&nbsp;353 | &nbsp;&nbsp;775 | &nbsp;&nbsp;1585 | &nbsp;&nbsp;1222 | &nbsp;&nbsp;1493666 | &nbsp;&nbsp;1.1 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1022** | &nbsp;&nbsp;1740 | &nbsp;&nbsp;653 | &nbsp;&nbsp;1.61 | &nbsp;&nbsp;18584 | &nbsp;&nbsp;1880 | &nbsp;&nbsp;560 | &nbsp;&nbsp;1371 | &nbsp;&nbsp;2535 | &nbsp;&nbsp;1893 | &nbsp;&nbsp;3581713 | &nbsp;&nbsp;1.0 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1023** | &nbsp;&nbsp;1444 | &nbsp;&nbsp;368.03 | &nbsp;&nbsp;1 | &nbsp;&nbsp;8713 | &nbsp;&nbsp;1189 | &nbsp;&nbsp;242 | &nbsp;&nbsp;746 | &nbsp;&nbsp;1780 | &nbsp;&nbsp;1247 | &nbsp;&nbsp;1554129 | &nbsp;&nbsp;1.0 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1024** | &nbsp;&nbsp;1069 | &nbsp;&nbsp;426.773 | &nbsp;&nbsp;1 | &nbsp;&nbsp;10399 | &nbsp;&nbsp;463 | &nbsp;&nbsp;113 | &nbsp;&nbsp;293 | &nbsp;&nbsp;612 | &nbsp;&nbsp;574 | &nbsp;&nbsp;329184 | &nbsp;&nbsp;1.2 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1025** | &nbsp;&nbsp;331 | &nbsp;&nbsp;105.36 | &nbsp;&nbsp;7 | &nbsp;&nbsp;4484 | &nbsp;&nbsp;608 | &nbsp;&nbsp;277 | &nbsp;&nbsp;476 | &nbsp;&nbsp;759 | &nbsp;&nbsp;537 | &nbsp;&nbsp;288864 | &nbsp;&nbsp;0.9 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1026** | &nbsp;&nbsp;481 | &nbsp;&nbsp;146.14 | &nbsp;&nbsp;7 | &nbsp;&nbsp;6698 | &nbsp;&nbsp;616 | &nbsp;&nbsp;151 | &nbsp;&nbsp;339 | &nbsp;&nbsp;741 | &nbsp;&nbsp;849 | &nbsp;&nbsp;720502 | &nbsp;&nbsp;1.4 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1027** | &nbsp;&nbsp;26 | &nbsp;&nbsp;6.15 | &nbsp;&nbsp;142 | &nbsp;&nbsp;2718 | &nbsp;&nbsp;942 | &nbsp;&nbsp;452 | &nbsp;&nbsp;636 | &nbsp;&nbsp;1371 | &nbsp;&nbsp;676 | &nbsp;&nbsp;457256 | &nbsp;&nbsp;0.7 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1029** | &nbsp;&nbsp;102 | &nbsp;&nbsp;30.63 | &nbsp;&nbsp;1 | &nbsp;&nbsp;2327 | &nbsp;&nbsp;451 | &nbsp;&nbsp;121 | &nbsp;&nbsp;308 | &nbsp;&nbsp;622 | &nbsp;&nbsp;451 | &nbsp;&nbsp;203214 | &nbsp;&nbsp;1.0 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1030** | &nbsp;&nbsp;21 | &nbsp;&nbsp;3.1 | &nbsp;&nbsp;70 | &nbsp;&nbsp;1655 | &nbsp;&nbsp;614 | &nbsp;&nbsp;179 | &nbsp;&nbsp;333 | &nbsp;&nbsp;972 | &nbsp;&nbsp;554 | &nbsp;&nbsp;306979 | &nbsp;&nbsp;0.9 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1031** | &nbsp;&nbsp;14 | &nbsp;&nbsp;4.15 | &nbsp;&nbsp;57 | &nbsp;&nbsp;2505 | &nbsp;&nbsp;859 | &nbsp;&nbsp;428 | &nbsp;&nbsp;635 | &nbsp;&nbsp;1292 | &nbsp;&nbsp;589 | &nbsp;&nbsp;347047 | &nbsp;&nbsp;0.7 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1032** | &nbsp;&nbsp;121 | &nbsp;&nbsp;35.9 | &nbsp;&nbsp;15 | &nbsp;&nbsp;3766 | &nbsp;&nbsp;531 | &nbsp;&nbsp;160 | &nbsp;&nbsp;319 | &nbsp;&nbsp;622 | &nbsp;&nbsp;591 | &nbsp;&nbsp;348870 | &nbsp;&nbsp;1.1 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1038** | &nbsp;&nbsp;5 | &nbsp;&nbsp;1.6 | &nbsp;&nbsp;87 | &nbsp;&nbsp;326 | &nbsp;&nbsp;188 | &nbsp;&nbsp;126 | &nbsp;&nbsp;223 | &nbsp;&nbsp;223 | &nbsp;&nbsp;81 | &nbsp;&nbsp;6546 | &nbsp;&nbsp;0.4 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1042** | &nbsp;&nbsp;4 | &nbsp;&nbsp;0.92 | &nbsp;&nbsp;13 | &nbsp;&nbsp;441 | &nbsp;&nbsp;174 | &nbsp;&nbsp;13 | &nbsp;&nbsp;151 | &nbsp;&nbsp;181 | &nbsp;&nbsp;161 | &nbsp;&nbsp;25940 | &nbsp;&nbsp;0.9 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1044** | &nbsp;&nbsp;88 | &nbsp;&nbsp;24.38 | &nbsp;&nbsp;7 | &nbsp;&nbsp;2534 | &nbsp;&nbsp;579 | &nbsp;&nbsp;187 | &nbsp;&nbsp;438 | &nbsp;&nbsp;829 | &nbsp;&nbsp;520 | &nbsp;&nbsp;270651 | &nbsp;&nbsp;0.9 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**1045** | &nbsp;&nbsp;10 | &nbsp;&nbsp;4.79 | &nbsp;&nbsp;54 | &nbsp;&nbsp;1390 | &nbsp;&nbsp;984 | &nbsp;&nbsp;552 | &nbsp;&nbsp;1025 | &nbsp;&nbsp;1382 | &nbsp;&nbsp;436 | &nbsp;&nbsp;190339 | &nbsp;&nbsp;0.4 |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;8557 | &nbsp;&nbsp;3016.45 | &nbsp;&nbsp;0 | &nbsp;&nbsp;**21114** | &nbsp;&nbsp;**1113** | &nbsp;&nbsp;235 | &nbsp;&nbsp;625 | &nbsp;&nbsp;1503 | &nbsp;&nbsp;1365 | &nbsp;&nbsp;1862215 | &nbsp;&nbsp;**1.2** |
| &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**All** | &nbsp;&nbsp;9831 | &nbsp;&nbsp;3576.73 | &nbsp;&nbsp;0 | &nbsp;&nbsp;21114 | &nbsp;&nbsp;950 | &nbsp;&nbsp;112 | &nbsp;&nbsp;462 | &nbsp;&nbsp;1295 | &nbsp;&nbsp;1313 | &nbsp;&nbsp;1725275 | &nbsp;&nbsp;1.4 |

---

Iron statistics show relatively low values for all veins however this is based on little data which makes it difficult to draw any meaningful inference from. The lack of iron data will factor into the discussion related to the determination of density and specific gravity. As such, a potential regression relationship will not factor Fe% content.

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-8

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|:---|:---|
| ![](logo_001.jpg) | ![](ex99-28_logo1.jpg) |

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**Table 14-9: Statistics Iron for the Caballo Blanco Deposit by Mine**

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Mine** | &nbsp;&nbsp;**Vein#** | &nbsp;&nbsp;**Length (m)** | &nbsp;&nbsp;**Min** | &nbsp;&nbsp;**Max** | &nbsp;&nbsp;**Mean** | &nbsp;&nbsp;**SD** | &nbsp;&nbsp;**CV** |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1000** | &nbsp;&nbsp;5613.02 | &nbsp;&nbsp;0 | &nbsp;&nbsp;30.73 | &nbsp;&nbsp;0.61 | &nbsp;&nbsp;2.84 | &nbsp;&nbsp;4.6 |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1001** | &nbsp;&nbsp;461.1 |  |  |  |  |  |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1002** | &nbsp;&nbsp;451.88 |  |  |  |  |  |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1005** | &nbsp;&nbsp;17.26 |  |  |  |  |  |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1006** | &nbsp;&nbsp;30.45 | &nbsp;&nbsp;0 | &nbsp;&nbsp;14.06 | &nbsp;&nbsp;0.96 | &nbsp;&nbsp;2.70 | &nbsp;&nbsp;2.8 |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1007** | &nbsp;&nbsp;2.63 |  |  |  |  |  |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1008** | &nbsp;&nbsp;103.29 | &nbsp;&nbsp;0 | &nbsp;&nbsp;22.79 | &nbsp;&nbsp;4.38 | &nbsp;&nbsp;5.67 | &nbsp;&nbsp;1.3 |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1009** | &nbsp;&nbsp;17.56 |  |  |  |  |  |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1010** | &nbsp;&nbsp;3559.32 | &nbsp;&nbsp;0 | &nbsp;&nbsp;31.2 | &nbsp;&nbsp;0.94 | &nbsp;&nbsp;3.85 | &nbsp;&nbsp;4.1 |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1011** | &nbsp;&nbsp;2519.93 | &nbsp;&nbsp;0 | &nbsp;&nbsp;29.61 | &nbsp;&nbsp;0.33 | &nbsp;&nbsp;2.45 | &nbsp;&nbsp;7.5 |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1012** | &nbsp;&nbsp;216.84 |  |  |  |  |  |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1014** | &nbsp;&nbsp;59.83 |  |  |  |  |  |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1016** | &nbsp;&nbsp;9.25 |  |  |  |  |  |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1019** | &nbsp;&nbsp;2.58 | &nbsp;&nbsp;10.34 | &nbsp;&nbsp;30.15 | &nbsp;&nbsp;21 | &nbsp;&nbsp;6.71 | &nbsp;&nbsp;0.3 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1020** | &nbsp;&nbsp;508.8 | &nbsp;&nbsp;0 | &nbsp;&nbsp;23.87 | &nbsp;&nbsp;0.63 | &nbsp;&nbsp;2.62 | &nbsp;&nbsp;4.1 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1021** | &nbsp;&nbsp;696.73 | &nbsp;&nbsp;0 | &nbsp;&nbsp;32.19 | &nbsp;&nbsp;2.43 | &nbsp;&nbsp;5.11 | &nbsp;&nbsp;2.1 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1022** | &nbsp;&nbsp;653 | &nbsp;&nbsp;0 | &nbsp;&nbsp;25.31 | &nbsp;&nbsp;1.10 | &nbsp;&nbsp;3.61 | &nbsp;&nbsp;3.3 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1023** | &nbsp;&nbsp;368.03 | &nbsp;&nbsp;0 | &nbsp;&nbsp;28.35 | &nbsp;&nbsp;0.77 | &nbsp;&nbsp;3.63 | &nbsp;&nbsp;4.7 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1024** | &nbsp;&nbsp;426.773 | &nbsp;&nbsp;0 | &nbsp;&nbsp;25.80 | &nbsp;&nbsp;1.39 | &nbsp;&nbsp;4.21 | &nbsp;&nbsp;3.0 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1025** | &nbsp;&nbsp;105.36 |  |  |  |  |  |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1026** | &nbsp;&nbsp;146.14 | &nbsp;&nbsp;0 | &nbsp;&nbsp;24.81 | &nbsp;&nbsp;3.51 | &nbsp;&nbsp;5.70 | &nbsp;&nbsp;1.6 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1027** | &nbsp;&nbsp;6.15 |  |  |  |  |  |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1029** | &nbsp;&nbsp;30.63 | &nbsp;&nbsp;0 | &nbsp;&nbsp;29.99 | &nbsp;&nbsp;3.01 | &nbsp;&nbsp;6.74 | &nbsp;&nbsp;2.2 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1030** | &nbsp;&nbsp;3.1 |  |  |  |  |  |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1031** | &nbsp;&nbsp;4.15 |  |  |  |  |  |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1032** | &nbsp;&nbsp;35.9 |  |  |  |  |  |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1038** | &nbsp;&nbsp;1.6 |  |  |  |  |  |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1042** | &nbsp;&nbsp;0.92 |  |  |  |  |  |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1044** | &nbsp;&nbsp;24.38 |  |  |  |  |  |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1045** | &nbsp;&nbsp;4.79 |  |  |  |  |  |

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Table 14-10 shows the statistical analysis of assay interval lengths shows that the mean sample length is 0.6, 0.9 and 0.4 m in length for Reserva, Colquechaquita and Tres Amigos, respectively. Additionally, the median (or the value where 50% of the data is above and below) values are 0.6, 0.8, 0.3 m in length for Reserva, Colquechaquita and Tres Amigos, respectively. Therefore, for all three mines, the data is negatively skewed for meaning that there is a preponderance of small sample lengths in comparison to greater thicknesses which is as expected for thin vein deposits such as these however not significantly so. Figure 14-6 also illustrates this negative skewness particularly and also illustrates that the assay lengths are predominately <1 m in length with 45% 18% and 3% of vein sample lengths being greater than or equal to 1 m for Reserva, Colquechaquita and Tres Amigos, respectively. The Tres Amigos deposit consists of mostly very thin veins that pose issues related to mining and recovery particularly with respect to dilution.

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-9

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|:---|:---|
| ![](logo_001.jpg) | ![](ex99-28_logo1.jpg) |

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**Table 14-10: Statistics Assay Interval Lengths for the Caballo Blanco Deposit by Mine**

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Mine** | &nbsp;&nbsp;**Vein#** | &nbsp;&nbsp;**#** | &nbsp;&nbsp;**Min** | &nbsp;&nbsp;**Max** | &nbsp;&nbsp;**Mean** | &nbsp;&nbsp;**1<sup>st</sup> Q** | &nbsp;&nbsp;**Median** | &nbsp;&nbsp;**3<sup>rd</sup> Q** | &nbsp;&nbsp;**SD** | &nbsp;&nbsp;**Var** | &nbsp;&nbsp;**CV** |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1000** | &nbsp;&nbsp;8742 | &nbsp;&nbsp;0 | &nbsp;&nbsp;4.3 | &nbsp;&nbsp;0.64 | &nbsp;&nbsp;0.40 | &nbsp;&nbsp;0.60 | &nbsp;&nbsp;0.80 | &nbsp;&nbsp;0.34 | &nbsp;&nbsp;0.11 | &nbsp;&nbsp;0.5 |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1001** | &nbsp;&nbsp;854 | &nbsp;&nbsp;0.05 | &nbsp;&nbsp;1.7 | &nbsp;&nbsp;0.54 | &nbsp;&nbsp;0.30 | &nbsp;&nbsp;0.50 | &nbsp;&nbsp;0.80 | &nbsp;&nbsp;0.28 | &nbsp;&nbsp;0.08 | &nbsp;&nbsp;0.5 |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1002** | &nbsp;&nbsp;1117 | &nbsp;&nbsp;0.05 | &nbsp;&nbsp;1.1 | &nbsp;&nbsp;0.41 | &nbsp;&nbsp;0.25 | &nbsp;&nbsp;0.40 | &nbsp;&nbsp;0.50 | &nbsp;&nbsp;0.21 | &nbsp;&nbsp;0.04 | &nbsp;&nbsp;0.5 |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1005** | &nbsp;&nbsp;29 | &nbsp;&nbsp;0.2 | &nbsp;&nbsp;1.3 | &nbsp;&nbsp;0.60 | &nbsp;&nbsp;0.30 | &nbsp;&nbsp;0.50 | &nbsp;&nbsp;0.85 | &nbsp;&nbsp;0.35 | &nbsp;&nbsp;0.12 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1006** | &nbsp;&nbsp;86 | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;0.35 | &nbsp;&nbsp;0.20 | &nbsp;&nbsp;0.30 | &nbsp;&nbsp;0.40 | &nbsp;&nbsp;0.24 | &nbsp;&nbsp;0.06 | &nbsp;&nbsp;0.7 |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1007** | &nbsp;&nbsp;9 | &nbsp;&nbsp;0.11 | &nbsp;&nbsp;0.52 | &nbsp;&nbsp;0.29 | &nbsp;&nbsp;0.22 | &nbsp;&nbsp;0.26 | &nbsp;&nbsp;0.40 | &nbsp;&nbsp;0.13 | &nbsp;&nbsp;0.02 | &nbsp;&nbsp;0.5 |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1008** | &nbsp;&nbsp;230 | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;0.45 | &nbsp;&nbsp;0.30 | &nbsp;&nbsp;0.40 | &nbsp;&nbsp;0.60 | &nbsp;&nbsp;0.22 | &nbsp;&nbsp;0.05 | &nbsp;&nbsp;0.5 |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1009** | &nbsp;&nbsp;27 | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;1.8 | &nbsp;&nbsp;0.65 | &nbsp;&nbsp;0.45 | &nbsp;&nbsp;0.55 | &nbsp;&nbsp;0.80 | &nbsp;&nbsp;0.37 | &nbsp;&nbsp;0.14 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1010** | &nbsp;&nbsp;4511 | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;3.40 | &nbsp;&nbsp;0.79 | &nbsp;&nbsp;0.60 | &nbsp;&nbsp;0.80 | &nbsp;&nbsp;0.95 | &nbsp;&nbsp;0.34 | &nbsp;&nbsp;0.12 | &nbsp;&nbsp;0.4 |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1011** | &nbsp;&nbsp;2153 | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;3.40 | &nbsp;&nbsp;1.17 | &nbsp;&nbsp;0.70 | &nbsp;&nbsp;1.00 | &nbsp;&nbsp;1.60 | &nbsp;&nbsp;0.56 | &nbsp;&nbsp;0.32 | &nbsp;&nbsp;0.5 |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1012** | &nbsp;&nbsp;313 | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;2.10 | &nbsp;&nbsp;0.69 | &nbsp;&nbsp;0.50 | &nbsp;&nbsp;0.70 | &nbsp;&nbsp;0.90 | &nbsp;&nbsp;0.35 | &nbsp;&nbsp;0.12 | &nbsp;&nbsp;0.5 |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1014** | &nbsp;&nbsp;42 | &nbsp;&nbsp;0.3 | &nbsp;&nbsp;2.30 | &nbsp;&nbsp;1.43 | &nbsp;&nbsp;1.10 | &nbsp;&nbsp;1.40 | &nbsp;&nbsp;1.60 | &nbsp;&nbsp;0.45 | &nbsp;&nbsp;0.20 | &nbsp;&nbsp;0.3 |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1016** | &nbsp;&nbsp;21 | &nbsp;&nbsp;0.2 | &nbsp;&nbsp;0.80 | &nbsp;&nbsp;0.44 | &nbsp;&nbsp;0.30 | &nbsp;&nbsp;0.40 | &nbsp;&nbsp;0.60 | &nbsp;&nbsp;0.20 | &nbsp;&nbsp;0.04 | &nbsp;&nbsp;0.5 |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1019** | &nbsp;&nbsp;6 | &nbsp;&nbsp;0.08 | &nbsp;&nbsp;0.68 | &nbsp;&nbsp;0.43 | &nbsp;&nbsp;0.26 | &nbsp;&nbsp;0.43 | &nbsp;&nbsp;0.58 | &nbsp;&nbsp;0.22 | &nbsp;&nbsp;0.05 | &nbsp;&nbsp;0.5 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1020** | &nbsp;&nbsp;1303 | &nbsp;&nbsp;0.05 | &nbsp;&nbsp;1.28 | &nbsp;&nbsp;0.39 | &nbsp;&nbsp;0.25 | &nbsp;&nbsp;0.35 | &nbsp;&nbsp;0.50 | &nbsp;&nbsp;0.21 | &nbsp;&nbsp;0.05 | &nbsp;&nbsp;0.5 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1021** | &nbsp;&nbsp;1798 | &nbsp;&nbsp;0.08 | &nbsp;&nbsp;1.20 | &nbsp;&nbsp;0.39 | &nbsp;&nbsp;0.25 | &nbsp;&nbsp;0.35 | &nbsp;&nbsp;0.50 | &nbsp;&nbsp;0.20 | &nbsp;&nbsp;0.04 | &nbsp;&nbsp;0.5 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1022** | &nbsp;&nbsp;1740 | &nbsp;&nbsp;0.05 | &nbsp;&nbsp;1.35 | &nbsp;&nbsp;0.38 | &nbsp;&nbsp;0.20 | &nbsp;&nbsp;0.30 | &nbsp;&nbsp;0.50 | &nbsp;&nbsp;0.23 | &nbsp;&nbsp;0.05 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1023** | &nbsp;&nbsp;1444 | &nbsp;&nbsp;0.05 | &nbsp;&nbsp;1.50 | &nbsp;&nbsp;0.26 | &nbsp;&nbsp;0.15 | &nbsp;&nbsp;0.20 | &nbsp;&nbsp;0.30 | &nbsp;&nbsp;0.16 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1024** | &nbsp;&nbsp;1069 | &nbsp;&nbsp;0.08 | &nbsp;&nbsp;1.80 | &nbsp;&nbsp;0.40 | &nbsp;&nbsp;0.20 | &nbsp;&nbsp;0.35 | &nbsp;&nbsp;0.50 | &nbsp;&nbsp;0.24 | &nbsp;&nbsp;0.06 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1025** | &nbsp;&nbsp;331 | &nbsp;&nbsp;0.05 | &nbsp;&nbsp;1.00 | &nbsp;&nbsp;0.32 | &nbsp;&nbsp;0.20 | &nbsp;&nbsp;0.30 | &nbsp;&nbsp;0.40 | &nbsp;&nbsp;0.19 | &nbsp;&nbsp;0.04 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1026** | &nbsp;&nbsp;481 | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;1.50 | &nbsp;&nbsp;0.30 | &nbsp;&nbsp;0.15 | &nbsp;&nbsp;0.25 | &nbsp;&nbsp;0.40 | &nbsp;&nbsp;0.19 | &nbsp;&nbsp;0.04 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1027** | &nbsp;&nbsp;26 | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;0.50 | &nbsp;&nbsp;0.24 | &nbsp;&nbsp;0.15 | &nbsp;&nbsp;0.20 | &nbsp;&nbsp;0.30 | &nbsp;&nbsp;0.11 | &nbsp;&nbsp;0.01 | &nbsp;&nbsp;0.5 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1029** | &nbsp;&nbsp;102 | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;0.90 | &nbsp;&nbsp;0.30 | &nbsp;&nbsp;0.20 | &nbsp;&nbsp;0.30 | &nbsp;&nbsp;0.40 | &nbsp;&nbsp;0.16 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;0.5 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1030** | &nbsp;&nbsp;21 | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;0.30 | &nbsp;&nbsp;0.15 | &nbsp;&nbsp;0.10 | &nbsp;&nbsp;0.10 | &nbsp;&nbsp;0.15 | &nbsp;&nbsp;0.08 | &nbsp;&nbsp;0.01 | &nbsp;&nbsp;0.5 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1031** | &nbsp;&nbsp;14 | &nbsp;&nbsp;0.2 | &nbsp;&nbsp;0.45 | &nbsp;&nbsp;0.30 | &nbsp;&nbsp;0.20 | &nbsp;&nbsp;0.30 | &nbsp;&nbsp;0.40 | &nbsp;&nbsp;0.09 | &nbsp;&nbsp;0.01 | &nbsp;&nbsp;0.3 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1032** | &nbsp;&nbsp;121 | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;0.85 | &nbsp;&nbsp;0.30 | &nbsp;&nbsp;0.20 | &nbsp;&nbsp;0.25 | &nbsp;&nbsp;0.40 | &nbsp;&nbsp;0.16 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1038** | &nbsp;&nbsp;5 | &nbsp;&nbsp;0.25 | &nbsp;&nbsp;0.40 | &nbsp;&nbsp;0.32 | &nbsp;&nbsp;0.25 | &nbsp;&nbsp;0.35 | &nbsp;&nbsp;0.35 | &nbsp;&nbsp;0.07 | &nbsp;&nbsp;0.01 | &nbsp;&nbsp;0.2 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1042** | &nbsp;&nbsp;4 | &nbsp;&nbsp;0.13 | &nbsp;&nbsp;0.34 | &nbsp;&nbsp;0.23 | &nbsp;&nbsp;0.13 | &nbsp;&nbsp;0.21 | &nbsp;&nbsp;0.24 | &nbsp;&nbsp;0.09 | &nbsp;&nbsp;0.01 | &nbsp;&nbsp;0.4 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1044** | &nbsp;&nbsp;88 | &nbsp;&nbsp;0.06 | &nbsp;&nbsp;0.60 | &nbsp;&nbsp;0.28 | &nbsp;&nbsp;0.20 | &nbsp;&nbsp;0.25 | &nbsp;&nbsp;0.35 | &nbsp;&nbsp;0.12 | &nbsp;&nbsp;0.02 | &nbsp;&nbsp;0.4 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1045** | &nbsp;&nbsp;10 | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;1.00 | &nbsp;&nbsp;0.48 | &nbsp;&nbsp;0.26 | &nbsp;&nbsp;0.30 | &nbsp;&nbsp;0.85 | &nbsp;&nbsp;0.34 | &nbsp;&nbsp;0.12 | &nbsp;&nbsp;0.7 |

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**Figure 14-6: Assay Interval Lengths for Colqechequita**

![](ex99-28_074.jpg)

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**Figure 14-7: Assay Interval Lengths for Reserva**

**Figure 14-8: Assay Interval Lengths for Tres Amigos**

![](ex99-28_076.jpg)

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A significant concern related to having very small sample widths is the potential for bias due to selectively sampled or high grading. Figure 14-9 through Figure 14-11 shows the distribution of silver values compared with sample lengths where there are a large number of high grades that coincide with small intervals. Compositing to larger intervals will understandably smooth out or dilute the effect of these high grades, it is also clear that an outlier strategy that reduces the extreme effects is also warranted even though variabilities remain low.

**Figure 14-9: Assay Interval Lengths vs Silver Grades for Colquechaquita**

![](ex99-28_077.jpg)

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**Figure 14-10: Assay Interval Lengths vs Silver Grades for Reserva**

![](ex99-28_078.jpg)

**Figure 14-11: Assay Interval Lengths vs Silver Grades for Tres Amigos**

![](ex99-28_079.jpg)

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.4 Composites

It was determined that a maximum of 1.0 m composite length offered the best balance between supplying common support for samples and minimizing the smoothing of the grades with ~80% of the samples within the mineralized zones being <1 m in length. The 1.0 m sample length also was consistent with the distribution of sample lengths within the mineralized domains as shown in the histogram of assay lengths.

Table 14-11 through Table 14-13 shows the basic statistics for the zinc, lead and silver composite grades within the mineralized vein domains by deposit. It should be noted that although 1.0 m is the maximum composite length, all residual composites were retained to represent a composite. Note that the composite data was not declustered however analysis shows that there are small variations in the mean grades between native and declustered composites. Due to the high degree of reliance on underground sample data for the estimation process, consideration should always include review of declustering to ensure appropriate data support.

All deposits and veins have relatively high mean zinc grades ranging from 10.8% to 27.3% and all have low CV's or variability around approximately 0.6. It is important to note that Tres Amigos zinc grades are ~25% higher than Reserva and Colquechaquita which is significant insofar as is has reduced widths so the higher grades allow for higher dilution.

**Table 14-11: Zn Composite Statistics for the Caballo Blanco by Deposit and Vein**

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Mine** | &nbsp;&nbsp;**Vein#** | &nbsp;&nbsp;**#** | &nbsp;&nbsp;**Length (m)** | &nbsp;&nbsp;**Min** | &nbsp;&nbsp;**Max** | &nbsp;&nbsp;**Mean** | &nbsp;&nbsp;**1<sup>st</sup> Q** | &nbsp;&nbsp;**Median** | &nbsp;&nbsp;**3<sup>rd</sup> Q** | &nbsp;&nbsp;**SD** | &nbsp;&nbsp;**Var** | &nbsp;&nbsp;**CV** |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1000** | &nbsp;&nbsp;12928 | &nbsp;&nbsp;11348.9 | &nbsp;&nbsp;0 | &nbsp;&nbsp;50.76 | &nbsp;&nbsp;14.69 | &nbsp;&nbsp;7.23 | &nbsp;&nbsp;13.72 | &nbsp;&nbsp;20.74 | &nbsp;&nbsp;9.23 | &nbsp;&nbsp;85.23 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1001** | &nbsp;&nbsp;1540 | &nbsp;&nbsp;964.4 | &nbsp;&nbsp;0.046 | &nbsp;&nbsp;51.57 | &nbsp;&nbsp;10.82 | &nbsp;&nbsp;4.88 | &nbsp;&nbsp;9.00 | &nbsp;&nbsp;15.86 | &nbsp;&nbsp;7.95 | &nbsp;&nbsp;63.13 | &nbsp;&nbsp;0.7 |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1002** | &nbsp;&nbsp;1598 | &nbsp;&nbsp;923.6 | &nbsp;&nbsp;0.01 | &nbsp;&nbsp;47.35 | &nbsp;&nbsp;15.06 | &nbsp;&nbsp;8.73 | &nbsp;&nbsp;14.62 | &nbsp;&nbsp;20.64 | &nbsp;&nbsp;8.45 | &nbsp;&nbsp;71.37 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;16066 | &nbsp;&nbsp;13236.8 | &nbsp;&nbsp;0 | &nbsp;&nbsp;51.57 | &nbsp;&nbsp;**14.43** | &nbsp;&nbsp;7.10 | &nbsp;&nbsp;13.45 | &nbsp;&nbsp;20.35 | &nbsp;&nbsp;9.15 | &nbsp;&nbsp;83.69 | &nbsp;&nbsp;**0.6** |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1010** | &nbsp;&nbsp;8100 | &nbsp;&nbsp;7084.9 | &nbsp;&nbsp;0 | &nbsp;&nbsp;52.58 | &nbsp;&nbsp;17.22 | &nbsp;&nbsp;9.76 | &nbsp;&nbsp;15.68 | &nbsp;&nbsp;23.03 | &nbsp;&nbsp;9.87 | &nbsp;&nbsp;97.49 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1011** | &nbsp;&nbsp;5454 | &nbsp;&nbsp;5013.5 | &nbsp;&nbsp;0 | &nbsp;&nbsp;36.14 | &nbsp;&nbsp;7.57 | &nbsp;&nbsp;3.25 | &nbsp;&nbsp;6.53 | &nbsp;&nbsp;10.54 | &nbsp;&nbsp;5.73 | &nbsp;&nbsp;32.82 | &nbsp;&nbsp;0.8 |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1012** | &nbsp;&nbsp;578 | &nbsp;&nbsp;431.9 | &nbsp;&nbsp;0 | &nbsp;&nbsp;40.33 | &nbsp;&nbsp;12.04 | &nbsp;&nbsp;6.38 | &nbsp;&nbsp;10.09 | &nbsp;&nbsp;16.26 | &nbsp;&nbsp;7.76 | &nbsp;&nbsp;60.19 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;14132 | &nbsp;&nbsp;12530.2 | &nbsp;&nbsp;0 | &nbsp;&nbsp;52.58 | &nbsp;&nbsp;**13.18** | &nbsp;&nbsp;5.80 | &nbsp;&nbsp;11.05 | &nbsp;&nbsp;18.43 | &nbsp;&nbsp;9.60 | &nbsp;&nbsp;92.21 | &nbsp;&nbsp;**0.7** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1020** | &nbsp;&nbsp;2314 | &nbsp;&nbsp;1028.4 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;64.33 | &nbsp;&nbsp;12.13 | &nbsp;&nbsp;6.88 | &nbsp;&nbsp;11.50 | &nbsp;&nbsp;16.50 | &nbsp;&nbsp;7.55 | &nbsp;&nbsp;57.05 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1021** | &nbsp;&nbsp;3318 | &nbsp;&nbsp;1411.4 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;52.13 | &nbsp;&nbsp;27.31 | &nbsp;&nbsp;18.54 | &nbsp;&nbsp;28.45 | &nbsp;&nbsp;36.69 | &nbsp;&nbsp;11.71 | &nbsp;&nbsp;137.12 | &nbsp;&nbsp;0.4 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1022** | &nbsp;&nbsp;3222 | &nbsp;&nbsp;1332.0 | &nbsp;&nbsp;0.09 | &nbsp;&nbsp;58.19 | &nbsp;&nbsp;18.40 | &nbsp;&nbsp;10.33 | &nbsp;&nbsp;17.51 | &nbsp;&nbsp;25.23 | &nbsp;&nbsp;10.51 | &nbsp;&nbsp;110.42 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1023** | &nbsp;&nbsp;2814 | &nbsp;&nbsp;755.9 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;52.16 | &nbsp;&nbsp;17.23 | &nbsp;&nbsp;9.36 | &nbsp;&nbsp;16.45 | &nbsp;&nbsp;24.12 | &nbsp;&nbsp;10.08 | &nbsp;&nbsp;101.58 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1024** | &nbsp;&nbsp;1872 | &nbsp;&nbsp;866.1 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;47.85 | &nbsp;&nbsp;11.78 | &nbsp;&nbsp;5.38 | &nbsp;&nbsp;10.73 | &nbsp;&nbsp;16.53 | &nbsp;&nbsp;7.82 | &nbsp;&nbsp;61.14 | &nbsp;&nbsp;0.7 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1025** | &nbsp;&nbsp;662 | &nbsp;&nbsp;216.7 | &nbsp;&nbsp;0.2 | &nbsp;&nbsp;40.45 | &nbsp;&nbsp;11.33 | &nbsp;&nbsp;7.01 | &nbsp;&nbsp;10.03 | &nbsp;&nbsp;15.30 | &nbsp;&nbsp;6.85 | &nbsp;&nbsp;46.94 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1026** | &nbsp;&nbsp;910 | &nbsp;&nbsp;298.7 | &nbsp;&nbsp;0.2 | &nbsp;&nbsp;48.20 | &nbsp;&nbsp;15.31 | &nbsp;&nbsp;7.62 | &nbsp;&nbsp;13.60 | &nbsp;&nbsp;21.33 | &nbsp;&nbsp;9.87 | &nbsp;&nbsp;97.45 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1029** | &nbsp;&nbsp;202 | &nbsp;&nbsp;71.8 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;36.03 | &nbsp;&nbsp;10.65 | &nbsp;&nbsp;5.50 | &nbsp;&nbsp;10.13 | &nbsp;&nbsp;15.16 | &nbsp;&nbsp;7.24 | &nbsp;&nbsp;52.39 | &nbsp;&nbsp;0.7 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1032** | &nbsp;&nbsp;234 | &nbsp;&nbsp;71.8 | &nbsp;&nbsp;0.51 | &nbsp;&nbsp;44.44 | &nbsp;&nbsp;15.54 | &nbsp;&nbsp;8.74 | &nbsp;&nbsp;14.16 | &nbsp;&nbsp;22.06 | &nbsp;&nbsp;7.91 | &nbsp;&nbsp;62.54 | &nbsp;&nbsp;0.5 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;15548 | &nbsp;&nbsp;6052.8 | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;64.33 | &nbsp;&nbsp;**17.79** | &nbsp;&nbsp;8.99 | &nbsp;&nbsp;15.81 | &nbsp;&nbsp;25.32 | &nbsp;&nbsp;11.38 | &nbsp;&nbsp;129.55 | &nbsp;&nbsp;**0.6** |

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Lead grades at Reserva are 50% lower than Colquechaquita and variability, although not meaningfully high, is elevated as shown by the CV being 1.6. For all veins, lead grades range from 1.94% to 10.8% however, as with the zinc, Tres Amigos has significantly higher grades (100% of Colquchequita) which allows for higher levels of dilution.

**Table 14-12: Pb Composite Statistics for the Caballo Blanco by Deposit and Vein**

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Mine** | &nbsp;&nbsp;**Vein#** | &nbsp;&nbsp;**#** | &nbsp;&nbsp;**Length (m)** | &nbsp;&nbsp;**Min** | &nbsp;&nbsp;**Max** | &nbsp;&nbsp;**Mean** | &nbsp;&nbsp;**1<sup>st</sup> Q** | &nbsp;&nbsp;**Median** | &nbsp;&nbsp;**3<sup>rd</sup> Q** | &nbsp;&nbsp;**SD** | &nbsp;&nbsp;**Var** | &nbsp;&nbsp;**CV** |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1000** | &nbsp;&nbsp;12928 | &nbsp;&nbsp;11348.9 | &nbsp;&nbsp;0 | &nbsp;&nbsp;45.12 | &nbsp;&nbsp;1.94 | &nbsp;&nbsp;0.31 | &nbsp;&nbsp;0.91 | &nbsp;&nbsp;2.30 | &nbsp;&nbsp;3.28 | &nbsp;&nbsp;10.76 | &nbsp;&nbsp;1.7 |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1001** | &nbsp;&nbsp;1540 | &nbsp;&nbsp;964.4 | &nbsp;&nbsp;0.018 | &nbsp;&nbsp;33.32 | &nbsp;&nbsp;2.23 | &nbsp;&nbsp;0.33 | &nbsp;&nbsp;1.00 | &nbsp;&nbsp;2.78 | &nbsp;&nbsp;3.30 | &nbsp;&nbsp;10.91 | &nbsp;&nbsp;1.5 |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1002** | &nbsp;&nbsp;1598 | &nbsp;&nbsp;923.6 | &nbsp;&nbsp;0.001 | &nbsp;&nbsp;23.19 | &nbsp;&nbsp;2.29 | &nbsp;&nbsp;0.62 | &nbsp;&nbsp;1.33 | &nbsp;&nbsp;2.90 | &nbsp;&nbsp;2.71 | &nbsp;&nbsp;7.35 | &nbsp;&nbsp;1.2 |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;16066 | &nbsp;&nbsp;13236.8 | &nbsp;&nbsp;0 | &nbsp;&nbsp;45.12 | &nbsp;&nbsp;**1.99** | &nbsp;&nbsp;0.32 | &nbsp;&nbsp;0.94 | &nbsp;&nbsp;2.37 | &nbsp;&nbsp;3.25 | &nbsp;&nbsp;10.55 | &nbsp;&nbsp;**1.6** |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1010** | &nbsp;&nbsp;8100 | &nbsp;&nbsp;7084.9 | &nbsp;&nbsp;0 | &nbsp;&nbsp;48.29 | &nbsp;&nbsp;3.14 | &nbsp;&nbsp;1.00 | &nbsp;&nbsp;1.95 | &nbsp;&nbsp;3.83 | &nbsp;&nbsp;3.66 | &nbsp;&nbsp;13.41 | &nbsp;&nbsp;1.2 |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1011** | &nbsp;&nbsp;5454 | &nbsp;&nbsp;5013.5 | &nbsp;&nbsp;0 | &nbsp;&nbsp;51.87 | &nbsp;&nbsp;4.59 | &nbsp;&nbsp;1.27 | &nbsp;&nbsp;2.99 | &nbsp;&nbsp;6.40 | &nbsp;&nbsp;4.86 | &nbsp;&nbsp;23.61 | &nbsp;&nbsp;1.1 |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1012** | &nbsp;&nbsp;578 | &nbsp;&nbsp;431.9 | &nbsp;&nbsp;0 | &nbsp;&nbsp;47.61 | &nbsp;&nbsp;5.83 | &nbsp;&nbsp;1.92 | &nbsp;&nbsp;3.85 | &nbsp;&nbsp;7.85 | &nbsp;&nbsp;5.81 | &nbsp;&nbsp;33.79 | &nbsp;&nbsp;1.0 |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;14132 | &nbsp;&nbsp;12530.2 | &nbsp;&nbsp;0 | &nbsp;&nbsp;51.87 | &nbsp;&nbsp;**3.81** | &nbsp;&nbsp;1.09 | &nbsp;&nbsp;2.30 | &nbsp;&nbsp;4.80 | &nbsp;&nbsp;4.34 | &nbsp;&nbsp;18.83 | &nbsp;&nbsp;**1.1** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1020** | &nbsp;&nbsp;2314 | &nbsp;&nbsp;1028.4 | &nbsp;&nbsp;7E-04 | &nbsp;&nbsp;62.32 | &nbsp;&nbsp;10.12 | &nbsp;&nbsp;2.75 | &nbsp;&nbsp;6.34 | &nbsp;&nbsp;14.08 | &nbsp;&nbsp;10.45 | &nbsp;&nbsp;109.17 | &nbsp;&nbsp;1.0 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1021** | &nbsp;&nbsp;3318 | &nbsp;&nbsp;1411.4 | &nbsp;&nbsp;0.001 | &nbsp;&nbsp;52.58 | &nbsp;&nbsp;5.87 | &nbsp;&nbsp;1.41 | &nbsp;&nbsp;3.04 | &nbsp;&nbsp;7.74 | &nbsp;&nbsp;7.20 | &nbsp;&nbsp;51.84 | &nbsp;&nbsp;1.2 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1022** | &nbsp;&nbsp;3222 | &nbsp;&nbsp;1332.0 | &nbsp;&nbsp;0.04 | &nbsp;&nbsp;66.49 | &nbsp;&nbsp;10.41 | &nbsp;&nbsp;2.25 | &nbsp;&nbsp;6.07 | &nbsp;&nbsp;16.05 | &nbsp;&nbsp;10.94 | &nbsp;&nbsp;119.64 | &nbsp;&nbsp;1.1 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1023** | &nbsp;&nbsp;2814 | &nbsp;&nbsp;755.9 | &nbsp;&nbsp;0.001 | &nbsp;&nbsp;65.10 | &nbsp;&nbsp;10.81 | &nbsp;&nbsp;1.39 | &nbsp;&nbsp;5.03 | &nbsp;&nbsp;15.88 | &nbsp;&nbsp;12.76 | &nbsp;&nbsp;162.94 | &nbsp;&nbsp;1.2 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1024** | &nbsp;&nbsp;1872 | &nbsp;&nbsp;866.1 | &nbsp;&nbsp;0.001 | &nbsp;&nbsp;29.40 | &nbsp;&nbsp;4.12 | &nbsp;&nbsp;1.19 | &nbsp;&nbsp;2.58 | &nbsp;&nbsp;4.99 | &nbsp;&nbsp;4.44 | &nbsp;&nbsp;19.74 | &nbsp;&nbsp;1.1 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1025** | &nbsp;&nbsp;662 | &nbsp;&nbsp;216.7 | &nbsp;&nbsp;0 | &nbsp;&nbsp;51.92 | &nbsp;&nbsp;6.26 | &nbsp;&nbsp;2.35 | &nbsp;&nbsp;4.07 | &nbsp;&nbsp;7.06 | &nbsp;&nbsp;7.35 | &nbsp;&nbsp;54.02 | &nbsp;&nbsp;1.2 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1026** | &nbsp;&nbsp;910 | &nbsp;&nbsp;298.7 | &nbsp;&nbsp;0.04 | &nbsp;&nbsp;44.53 | &nbsp;&nbsp;4.58 | &nbsp;&nbsp;0.98 | &nbsp;&nbsp;2.36 | &nbsp;&nbsp;5.65 | &nbsp;&nbsp;6.13 | &nbsp;&nbsp;37.52 | &nbsp;&nbsp;1.3 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1029** | &nbsp;&nbsp;202 | &nbsp;&nbsp;71.8 | &nbsp;&nbsp;0.001 | &nbsp;&nbsp;43.21 | &nbsp;&nbsp;4.89 | &nbsp;&nbsp;1.36 | &nbsp;&nbsp;2.24 | &nbsp;&nbsp;5.53 | &nbsp;&nbsp;6.68 | &nbsp;&nbsp;44.63 | &nbsp;&nbsp;1.4 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1032** | &nbsp;&nbsp;234 | &nbsp;&nbsp;71.8 | &nbsp;&nbsp;0.27 | &nbsp;&nbsp;31.84 | &nbsp;&nbsp;5.54 | &nbsp;&nbsp;1.28 | &nbsp;&nbsp;2.76 | &nbsp;&nbsp;5.47 | &nbsp;&nbsp;7.22 | &nbsp;&nbsp;52.08 | &nbsp;&nbsp;1.3 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;15548 | &nbsp;&nbsp;6052.8 | &nbsp;&nbsp;0 | &nbsp;&nbsp;66.49 | &nbsp;&nbsp;**7.89** | &nbsp;&nbsp;1.58 | &nbsp;&nbsp;3.99 | &nbsp;&nbsp;10.52 | &nbsp;&nbsp;9.60 | &nbsp;&nbsp;92.16 | &nbsp;&nbsp;**1.2** |

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SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-15

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Mean silver grades for all veins range from 157 to 1,846 g/t however there are extreme values greater than 8,000 to a maximum of 21,114 g/t which are predominantly within Tres Amigos. As with the lead grades the mean silver grades at Reserva are approximately 50% of those at Colquechaquita. An average CV of approximately 1.2 is relatively low for such a high-grade deposit however, it remains prudent to develop an outlier strategy that mitigates the risk of these extreme grades having an outsized influence on the resource estimation.

**Table 14-13: Ag Composite Statistics for the Caballo Blanco by Deposit and Vein**

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Mine** | &nbsp;&nbsp;**Vein#** | &nbsp;&nbsp;**#** | &nbsp;&nbsp;**Length (m)** | &nbsp;&nbsp;**Min** | &nbsp;&nbsp;**Max** | &nbsp;&nbsp;**Mean** | &nbsp;&nbsp;**1<sup>st</sup> Q** | &nbsp;&nbsp;**Median** | &nbsp;&nbsp;**3<sup>rd</sup> Q** | &nbsp;&nbsp;**SD** | &nbsp;&nbsp;**Var** | &nbsp;&nbsp;**CV** |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1000** | &nbsp;&nbsp;12928 | &nbsp;&nbsp;11348.9 | &nbsp;&nbsp;0 | &nbsp;&nbsp;3304 | &nbsp;&nbsp;157 | &nbsp;&nbsp;50 | &nbsp;&nbsp;99 | &nbsp;&nbsp;187 | &nbsp;&nbsp;202 | &nbsp;&nbsp;40856 | &nbsp;&nbsp;1.3 |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1001** | &nbsp;&nbsp;1540 | &nbsp;&nbsp;964.4 | &nbsp;&nbsp;2 | &nbsp;&nbsp;1813 | &nbsp;&nbsp;165 | &nbsp;&nbsp;38 | &nbsp;&nbsp;100 | &nbsp;&nbsp;218 | &nbsp;&nbsp;202 | &nbsp;&nbsp;40808 | &nbsp;&nbsp;1.2 |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1002** | &nbsp;&nbsp;1598 | &nbsp;&nbsp;923.6 | &nbsp;&nbsp;1 | &nbsp;&nbsp;2529 | &nbsp;&nbsp;143 | &nbsp;&nbsp;52 | &nbsp;&nbsp;94 | &nbsp;&nbsp;171 | &nbsp;&nbsp;158 | &nbsp;&nbsp;24890 | &nbsp;&nbsp;1.1 |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;16066 | &nbsp;&nbsp;13236.8 | &nbsp;&nbsp;0 | &nbsp;&nbsp;3304 | &nbsp;&nbsp;**157** | &nbsp;&nbsp;49 | &nbsp;&nbsp;99 | &nbsp;&nbsp;188 | &nbsp;&nbsp;199 | &nbsp;&nbsp;39756 | &nbsp;&nbsp;**1.3** |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1010** | &nbsp;&nbsp;8100 | &nbsp;&nbsp;7084.9 | &nbsp;&nbsp;0 | &nbsp;&nbsp;8116 | &nbsp;&nbsp;343 | &nbsp;&nbsp;89 | &nbsp;&nbsp;170 | &nbsp;&nbsp;387 | &nbsp;&nbsp;503 | &nbsp;&nbsp;252702 | &nbsp;&nbsp;1.5 |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1011** | &nbsp;&nbsp;5454 | &nbsp;&nbsp;5013.5 | &nbsp;&nbsp;0 | &nbsp;&nbsp;6054 | &nbsp;&nbsp;391 | &nbsp;&nbsp;134 | &nbsp;&nbsp;290 | &nbsp;&nbsp;540 | &nbsp;&nbsp;428 | &nbsp;&nbsp;182779 | &nbsp;&nbsp;1.1 |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1012** | &nbsp;&nbsp;578 | &nbsp;&nbsp;431.9 | &nbsp;&nbsp;0 | &nbsp;&nbsp;3400 | &nbsp;&nbsp;394 | &nbsp;&nbsp;159 | &nbsp;&nbsp;280 | &nbsp;&nbsp;470 | &nbsp;&nbsp;416 | &nbsp;&nbsp;172925 | &nbsp;&nbsp;1.1 |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;14132 | &nbsp;&nbsp;12530.2 | &nbsp;&nbsp;0 | &nbsp;&nbsp;8116 | &nbsp;&nbsp;**364** | &nbsp;&nbsp;103 | &nbsp;&nbsp;213 | &nbsp;&nbsp;458 | &nbsp;&nbsp;472 | &nbsp;&nbsp;222548 | &nbsp;&nbsp;**1.3** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1020** | &nbsp;&nbsp;2314 | &nbsp;&nbsp;1028.4 | &nbsp;&nbsp;0 | &nbsp;&nbsp;**9590** | &nbsp;&nbsp;**924** | &nbsp;&nbsp;212 | &nbsp;&nbsp;574 | &nbsp;&nbsp;1241 | &nbsp;&nbsp;1082 | &nbsp;&nbsp;1170821 | &nbsp;&nbsp;1.2 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1021** | &nbsp;&nbsp;3318 | &nbsp;&nbsp;1411.4 | &nbsp;&nbsp;1 | &nbsp;&nbsp;**21114** | &nbsp;&nbsp;**1138** | &nbsp;&nbsp;369 | &nbsp;&nbsp;785 | &nbsp;&nbsp;1554 | &nbsp;&nbsp;1164 | &nbsp;&nbsp;1355947 | &nbsp;&nbsp;1.0 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1022** | &nbsp;&nbsp;3222 | &nbsp;&nbsp;1332.0 | &nbsp;&nbsp;1.61 | &nbsp;&nbsp;**18584** | &nbsp;&nbsp;**1846** | &nbsp;&nbsp;561 | &nbsp;&nbsp;1318 | &nbsp;&nbsp;2474 | &nbsp;&nbsp;1862 | &nbsp;&nbsp;3466638 | &nbsp;&nbsp;1.0 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1023** | &nbsp;&nbsp;2814 | &nbsp;&nbsp;755.9 | &nbsp;&nbsp;1 | &nbsp;&nbsp;**8713** | &nbsp;&nbsp;**1159** | &nbsp;&nbsp;228 | &nbsp;&nbsp;728 | &nbsp;&nbsp;1704 | &nbsp;&nbsp;1230 | &nbsp;&nbsp;1513653 | &nbsp;&nbsp;1.1 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1024** | &nbsp;&nbsp;1872 | &nbsp;&nbsp;866.1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;**10399** | &nbsp;&nbsp;457 | &nbsp;&nbsp;134 | &nbsp;&nbsp;295 | &nbsp;&nbsp;598 | &nbsp;&nbsp;521 | &nbsp;&nbsp;271804 | &nbsp;&nbsp;1.1 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1025** | &nbsp;&nbsp;662 | &nbsp;&nbsp;216.7 | &nbsp;&nbsp;7 | &nbsp;&nbsp;4484 | &nbsp;&nbsp;593 | &nbsp;&nbsp;254 | &nbsp;&nbsp;461 | &nbsp;&nbsp;729 | &nbsp;&nbsp;538 | &nbsp;&nbsp;289077 | &nbsp;&nbsp;0.9 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1026** | &nbsp;&nbsp;910 | &nbsp;&nbsp;298.7 | &nbsp;&nbsp;7 | &nbsp;&nbsp;6698 | &nbsp;&nbsp;604 | &nbsp;&nbsp;158 | &nbsp;&nbsp;338 | &nbsp;&nbsp;730 | &nbsp;&nbsp;839 | &nbsp;&nbsp;703627 | &nbsp;&nbsp;1.4 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1029** | &nbsp;&nbsp;202 | &nbsp;&nbsp;71.8 | &nbsp;&nbsp;1 | &nbsp;&nbsp;2327 | &nbsp;&nbsp;392 | &nbsp;&nbsp;113 | &nbsp;&nbsp;251 | &nbsp;&nbsp;530 | &nbsp;&nbsp;420 | &nbsp;&nbsp;176227 | &nbsp;&nbsp;1.1 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1032** | &nbsp;&nbsp;234 | &nbsp;&nbsp;71.8 | &nbsp;&nbsp;15 | &nbsp;&nbsp;3766 | &nbsp;&nbsp;531 | &nbsp;&nbsp;166 | &nbsp;&nbsp;317 | &nbsp;&nbsp;622 | &nbsp;&nbsp;589 | &nbsp;&nbsp;347303 | &nbsp;&nbsp;1.1 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;15548 | &nbsp;&nbsp;6052.8 | &nbsp;&nbsp;0 | &nbsp;&nbsp;21114 | &nbsp;&nbsp;**1101** | &nbsp;&nbsp;253 | &nbsp;&nbsp;636 | &nbsp;&nbsp;1462 | &nbsp;&nbsp;1333 | &nbsp;&nbsp;1775830 | &nbsp;&nbsp;**1.2** |

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SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-16

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In summary, all three deposits have fairly consistent high zinc grades. The lead and silver grades for Colquechaquita are high being elevated by about 100% of the grades at Reserva. However, the lead and silver grades are two to three times those at Colquechaquita. The high and extreme grades, particularly for Tres Amigos, are important when considering the relatively narrow vein widths.

The box plots for the zinc composites shown in Figure 14-12 through Figure 14-14 illustrate that each of the individual vein domains have differing statistical characteristics and grade distributions. These illustrate that there is not a case combine any or all of the vein domains for estimation and as such, they are treated independently utilizing hard boundaries.

**Figure 14-12: Box Plot of Zn Composites for the Caballo Blanco Deposit - Reserva**

![](ex99-28_080.jpg)

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-17

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**Figure 14-13: Box Plot of Zn Composites for the Caballo Blanco Deposit - Colquechaquita**

![](ex99-28_081.jpg)

**Figure 14-14: Box Plot of Zn Composites for the Caballo Blanco Deposit – Tres Amigos**

![](ex99-28_082.jpg)

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-18

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The box plots for the lead and silver composites shown in Figure 14-15 through Figure 14-17 for lead and Figure 14-18 through Figure 14-20 for silver, illustrate that each of the individual vein domains have differing statistical characteristics and grade distributions. At Reserva, there is a case for combining the veins or employing soft boundaries as the veins show very similar characteristics. The same may be considered for the Colquechaquita veins however Tres Amigos shows that the various veins are quite dis-similar. It was decided to continue to employ hard boundaries to mitigate the potential of spreading high-grades across fault boundaries.

**Figure 14-15: Box Plot of Pb Composites for the Caballo Blanco Deposit - Reserva**

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-19

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**Figure 14-16: Box Plot of Pb Composites for the Caballo Blanco Deposit - Colquechaquita**

![](ex99-28_084.jpg)

**Figure 14-17: Box Plot of Pb Composites for the Caballo Blanco Deposit – Tres Amigos**

![](ex99-28_085.jpg)

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-20

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**Figure 14-18: Box Plot of Ag Composites for the Caballo Blanco Deposit - Reserva**

![](ex99-28_086.jpg)

**Figure 14-19: Box Plot of Ag Composites for the Caballo Blanco Deposit - Colquechaquita**

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-21

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**Figure 14-20: Box Plot of Zn Composites for the Caballo Blanco Deposit – Tres Amigos**

![](ex99-28_088.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.5 Evaluation
 of Outlier Assay Values

An evaluation of the probability plots suggests that there may be outlier assay values that could result in an overestimation of resources as previously discussed. Although it is believed that this risk is relatively low due to the very low variability as shown by consistently reduced CV's, it was considered prudent to cut the zinc, lead and silver composites to varying thresholds for each mineralized vein to reduce the effects of high-grade outliers. This may be mitigated or resolved by 1) compositing and 2) cutting or grade limiting.

An evaluation of the probability plots suggests that there may be outlier values or populations that could result in an overestimation or smearing of grade. Probability plots for Colquechaquita, Reserva and Tres Amigos for the zinc, lead and silver demonstrate "breaks" or shift at the >99-percentile that indicate an outlier population. Therefore, for composites above those "breaks" or thresholds, the composites are limited or capped.

Table 14-14 lists the cut thresholds applied to the composite data for each individual vein at each deposit for zinc, lead and silver, respectively.

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-22

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**Table 14-14: Outlier Cutting Analysis for the Caballo Blanco Deposit**

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Vein Code** | &nbsp;&nbsp;**Vein Name** | &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**Pb** | &nbsp;&nbsp;**Ag** |
| &nbsp;&nbsp;**Reserva Mine** | &nbsp;&nbsp;**Reserva Mine** | &nbsp;&nbsp;**Reserva Mine** | &nbsp;&nbsp;**Reserva Mine** | &nbsp;&nbsp;**Reserva Mine** |
| &nbsp;&nbsp;**1000** | &nbsp;&nbsp;Rosario | &nbsp;&nbsp;45 | &nbsp;&nbsp;11 | &nbsp;&nbsp;721 |
| &nbsp;&nbsp;**1001** | &nbsp;&nbsp;Wendy | &nbsp;&nbsp;38.6 | &nbsp;&nbsp;12 | &nbsp;&nbsp;631 |
| &nbsp;&nbsp;**1002** | &nbsp;&nbsp;Wendy Techo | &nbsp;&nbsp;44 | &nbsp;&nbsp;11 | &nbsp;&nbsp;715 |
| &nbsp;&nbsp;**Colquechaquita Mine** | &nbsp;&nbsp;**Colquechaquita Mine** | &nbsp;&nbsp;**Colquechaquita Mine** | &nbsp;&nbsp;**Colquechaquita Mine** | &nbsp;&nbsp;**Colquechaquita Mine** |
| &nbsp;&nbsp;**1010** | &nbsp;&nbsp;Viviana | &nbsp;&nbsp;48.2 | &nbsp;&nbsp;15 | &nbsp;&nbsp;1380 |
| &nbsp;&nbsp;**1011** | &nbsp;&nbsp;Karina | &nbsp;&nbsp;27.2 | &nbsp;&nbsp;21 | &nbsp;&nbsp;1634 |
| &nbsp;&nbsp;**1012** | &nbsp;&nbsp;Camila | &nbsp;&nbsp;20 | &nbsp;&nbsp;17 | &nbsp;&nbsp;1600 |
| &nbsp;&nbsp;**Tres Amigos Mine** | &nbsp;&nbsp;**Tres Amigos Mine** | &nbsp;&nbsp;**Tres Amigos Mine** | &nbsp;&nbsp;**Tres Amigos Mine** | &nbsp;&nbsp;**Tres Amigos Mine** |
| &nbsp;&nbsp;**1020** | &nbsp;&nbsp;Catalina | &nbsp;&nbsp;32 | &nbsp;&nbsp;32 | &nbsp;&nbsp;3411 |
| &nbsp;&nbsp;**1021** | &nbsp;&nbsp;Ramo | &nbsp;&nbsp;42.1 | &nbsp;&nbsp;33 | &nbsp;&nbsp;3739 |
| &nbsp;&nbsp;**1022** | &nbsp;&nbsp;Daniela | &nbsp;&nbsp;40.3 | &nbsp;&nbsp;32 | &nbsp;&nbsp;4403 |
| &nbsp;&nbsp;**1023** | &nbsp;&nbsp;Milagros | &nbsp;&nbsp;22 | &nbsp;&nbsp;19 | &nbsp;&nbsp;1890 |
| &nbsp;&nbsp;**1024** | &nbsp;&nbsp;Central | &nbsp;&nbsp;35.5 | &nbsp;&nbsp;18 | &nbsp;&nbsp;2330 |
| &nbsp;&nbsp;**1025** | &nbsp;&nbsp;Central Este | &nbsp;&nbsp;33.3 | &nbsp;&nbsp;25 | &nbsp;&nbsp;2450 |
| &nbsp;&nbsp;**1026** | &nbsp;&nbsp;Ramo Central II | &nbsp;&nbsp;40.4 | &nbsp;&nbsp;21 | &nbsp;&nbsp;1750 |
| &nbsp;&nbsp;**1028** | &nbsp;&nbsp;Ramo Central Este | &nbsp;&nbsp;30.5 | &nbsp;&nbsp;25 | &nbsp;&nbsp;1400 |
| &nbsp;&nbsp;**1032** | &nbsp;&nbsp;Tatiana | &nbsp;&nbsp;33.3 | &nbsp;&nbsp;24.5 | &nbsp;&nbsp;2450 |

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The outlier analysis for zinc as shown in Table 14-15 illustrates the effect of each process from assay data, composites and cut composites along with the reduction in average grade and corresponding CV. Throughout, the results show a modest reduction of metal as illustrated by the reductions of the mean grades from assay versus cut composites as shown as red bold. In addition, variability is modestly to significantly reduced as illustrated by the reduction in the CV's.

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-23

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**Table 14-15: Outlier Cutting Analysis for Zinc**

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| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Mine** | &nbsp;&nbsp;**Vein #** | &nbsp;&nbsp;**Assays** | &nbsp;&nbsp;**Assays** | &nbsp;&nbsp;**Assays** | &nbsp;&nbsp;**Comp** | &nbsp;&nbsp;**Comp** | &nbsp;&nbsp;**Comp** | &nbsp;&nbsp;**Cut Grades** | &nbsp;&nbsp;**Cut Grades** | &nbsp;&nbsp;**Cut Grades** | &nbsp;&nbsp;**Comps Vs Cut** | &nbsp;&nbsp;**Comps Vs Cut** | &nbsp;&nbsp;**Comps Vs Cut** | &nbsp;&nbsp;**Assays vs Cut** | &nbsp;&nbsp;**Assays vs Cut** | &nbsp;&nbsp;**Assays vs Cut** |
| &nbsp;&nbsp;**Mine** | &nbsp;&nbsp;**Vein #** | &nbsp;&nbsp;**Max** | &nbsp;&nbsp;**Mean** | &nbsp;&nbsp;**CV** | &nbsp;&nbsp;**Max** | &nbsp;&nbsp;**Mean** | &nbsp;&nbsp;**CV** | &nbsp;&nbsp;**Max** | &nbsp;&nbsp;**Mean** | &nbsp;&nbsp;**CV** | &nbsp;&nbsp;**Max** | &nbsp;&nbsp;**Mean** | &nbsp;&nbsp;**CV** | &nbsp;&nbsp;**Max** | &nbsp;&nbsp;**Mean** | &nbsp;&nbsp;**CV** |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1000** | &nbsp;&nbsp;54.00 | &nbsp;&nbsp;14.72 | &nbsp;&nbsp;0.8 | &nbsp;&nbsp;50.76 | &nbsp;&nbsp;14.69 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;45 | &nbsp;&nbsp;14.69 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;-11% | &nbsp;&nbsp;0% | &nbsp;&nbsp;0% | &nbsp;&nbsp;-17% | &nbsp;&nbsp;0% | &nbsp;&nbsp;**-17%** |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1001** | &nbsp;&nbsp;51.57 | &nbsp;&nbsp;11.03 | &nbsp;&nbsp;0.8 | &nbsp;&nbsp;51.57 | &nbsp;&nbsp;10.82 | &nbsp;&nbsp;0.7 | &nbsp;&nbsp;38.6 | &nbsp;&nbsp;10.80 | &nbsp;&nbsp;0.7 | &nbsp;&nbsp;-25% | &nbsp;&nbsp;0% | &nbsp;&nbsp;-1% | &nbsp;&nbsp;-25% | &nbsp;&nbsp;**-2%** | &nbsp;&nbsp;**-6%** |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1002** | &nbsp;&nbsp;47.35 | &nbsp;&nbsp;15.38 | &nbsp;&nbsp;0.7 | &nbsp;&nbsp;47.35 | &nbsp;&nbsp;15.06 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;44 | &nbsp;&nbsp;15.05 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;-7% | &nbsp;&nbsp;0% | &nbsp;&nbsp;0% | &nbsp;&nbsp;-7% | &nbsp;&nbsp;**-2%** | &nbsp;&nbsp;**-21%** |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;54.00 | &nbsp;&nbsp;14.50 | &nbsp;&nbsp;0.8 | &nbsp;&nbsp;51.57 | &nbsp;&nbsp;14.43 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;45 | &nbsp;&nbsp;14.43 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;-13% | &nbsp;&nbsp;0% | &nbsp;&nbsp;0% | &nbsp;&nbsp;-17% | &nbsp;&nbsp;**-1%** | &nbsp;&nbsp;**-16%** |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1010** | &nbsp;&nbsp;52.58 | &nbsp;&nbsp;17.23 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;52.58 | &nbsp;&nbsp;17.22 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;48.2 | &nbsp;&nbsp;17.22 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;-8% | &nbsp;&nbsp;0% | &nbsp;&nbsp;0% | &nbsp;&nbsp;-8% | &nbsp;&nbsp;0% | &nbsp;&nbsp;**-6%** |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1011** | &nbsp;&nbsp;38.28 | &nbsp;&nbsp;7.58 | &nbsp;&nbsp;0.8 | &nbsp;&nbsp;36.14 | &nbsp;&nbsp;7.57 | &nbsp;&nbsp;0.8 | &nbsp;&nbsp;27.2 | &nbsp;&nbsp;7.54 | &nbsp;&nbsp;0.7 | &nbsp;&nbsp;-25% | &nbsp;&nbsp;0% | &nbsp;&nbsp;-2% | &nbsp;&nbsp;-29% | &nbsp;&nbsp;0% | &nbsp;&nbsp;**-4%** |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1012** | &nbsp;&nbsp;40.33 | &nbsp;&nbsp;11.94 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;40.33 | &nbsp;&nbsp;12.04 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;20 | &nbsp;&nbsp;11.04 | &nbsp;&nbsp;0.5 | &nbsp;&nbsp;-50% | &nbsp;&nbsp;-8% | &nbsp;&nbsp;-18% | &nbsp;&nbsp;-50% | &nbsp;&nbsp;**-8%** | &nbsp;&nbsp;**-17%** |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;52.58 | &nbsp;&nbsp;13.26 | &nbsp;&nbsp;0.8 | &nbsp;&nbsp;52.58 | &nbsp;&nbsp;13.18 | &nbsp;&nbsp;0.7 | &nbsp;&nbsp;48.2 | &nbsp;&nbsp;13.14 | &nbsp;&nbsp;0.7 | &nbsp;&nbsp;-8% | &nbsp;&nbsp;0% | &nbsp;&nbsp;0% | &nbsp;&nbsp;-8% | &nbsp;&nbsp;-1% | &nbsp;&nbsp;**-4%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1020** | &nbsp;&nbsp;64.33 | &nbsp;&nbsp;12.56 | &nbsp;&nbsp;0.7 | &nbsp;&nbsp;64.33 | &nbsp;&nbsp;12.13 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;32 | &nbsp;&nbsp;12.06 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;-50% | &nbsp;&nbsp;-1% | &nbsp;&nbsp;-3% | &nbsp;&nbsp;-50% | &nbsp;&nbsp;**-4%** | &nbsp;&nbsp;**-9%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1021** | &nbsp;&nbsp;52.13 | &nbsp;&nbsp;27.69 | &nbsp;&nbsp;0.4 | &nbsp;&nbsp;52.13 | &nbsp;&nbsp;27.31 | &nbsp;&nbsp;0.4 | &nbsp;&nbsp;42.1 | &nbsp;&nbsp;27.01 | &nbsp;&nbsp;0.4 | &nbsp;&nbsp;-19% | &nbsp;&nbsp;-1% | &nbsp;&nbsp;-3% | &nbsp;&nbsp;-19% | &nbsp;&nbsp;**-2%** | &nbsp;&nbsp;**-7%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1022** | &nbsp;&nbsp;58.19 | &nbsp;&nbsp;19.03 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;58.19 | &nbsp;&nbsp;18.40 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;40.3 | &nbsp;&nbsp;18.27 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;-31% | &nbsp;&nbsp;-1% | &nbsp;&nbsp;-2% | &nbsp;&nbsp;-31% | &nbsp;&nbsp;**-4%** | &nbsp;&nbsp;0% |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1023** | &nbsp;&nbsp;52.16 | &nbsp;&nbsp;17.85 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;52.16 | &nbsp;&nbsp;17.23 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;22 | &nbsp;&nbsp;14.94 | &nbsp;&nbsp;0.5 | &nbsp;&nbsp;-58% | &nbsp;&nbsp;-13% | &nbsp;&nbsp;-21% | &nbsp;&nbsp;-58% | &nbsp;&nbsp;**-16%** | &nbsp;&nbsp;**-19%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1024** | &nbsp;&nbsp;47.85 | &nbsp;&nbsp;11.92 | &nbsp;&nbsp;0.7 | &nbsp;&nbsp;47.85 | &nbsp;&nbsp;11.78 | &nbsp;&nbsp;0.7 | &nbsp;&nbsp;35.5 | &nbsp;&nbsp;11.74 | &nbsp;&nbsp;0.7 | &nbsp;&nbsp;-26% | &nbsp;&nbsp;0% | &nbsp;&nbsp;-1% | &nbsp;&nbsp;-26% | &nbsp;&nbsp;-1% | &nbsp;&nbsp;**-6%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1025** | &nbsp;&nbsp;38.32 | &nbsp;&nbsp;11.56 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;40.45 | &nbsp;&nbsp;11.33 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;33.3 | &nbsp;&nbsp;11.27 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;-18% | &nbsp;&nbsp;0% | &nbsp;&nbsp;-2% | &nbsp;&nbsp;-13% | &nbsp;&nbsp;-2% | &nbsp;&nbsp;**2%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1026** | &nbsp;&nbsp;48.20 | &nbsp;&nbsp;16.52 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;48.20 | &nbsp;&nbsp;15.31 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;40.4 | &nbsp;&nbsp;15.23 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;-16% | &nbsp;&nbsp;-1% | &nbsp;&nbsp;-2% | &nbsp;&nbsp;-16% | &nbsp;&nbsp;**-8%** | &nbsp;&nbsp;**-1%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1032** | &nbsp;&nbsp;44.44 | &nbsp;&nbsp;15.58 | &nbsp;&nbsp;0.5 | &nbsp;&nbsp;44.44 | &nbsp;&nbsp;15.54 | &nbsp;&nbsp;0.5 | &nbsp;&nbsp;33.3 | &nbsp;&nbsp;15.48 | &nbsp;&nbsp;0.5 | &nbsp;&nbsp;-25% | &nbsp;&nbsp;0% | &nbsp;&nbsp;-2% | &nbsp;&nbsp;-25% | &nbsp;&nbsp;-1% | &nbsp;&nbsp;**-4%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;64.33 | &nbsp;&nbsp;18.19 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;64.33 | &nbsp;&nbsp;17.79 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;42.1 | &nbsp;&nbsp;17.38 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;-35% | &nbsp;&nbsp;-2% | &nbsp;&nbsp;-3% | &nbsp;&nbsp;-35% | &nbsp;&nbsp;**-4%** | &nbsp;&nbsp;**-3%** |

---

The outlier analysis for lead as shown in Table 14-16 show a marked reduction of metal from assay versus cut composites as shown as red bold. In addition, variability is significantly reduced as illustrated by the reduction in the CV's.

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-24

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| ![](logo_001.jpg) | ![](ex99-28_logo1.jpg) |

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**Table 14-16: Outlier Cutting Analysis for Lead**

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| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Mine** | &nbsp;&nbsp;**Vein #** | &nbsp;&nbsp;**Assays** | &nbsp;&nbsp;**Assays** | &nbsp;&nbsp;**Assays** | &nbsp;&nbsp;**Comp** | &nbsp;&nbsp;**Comp** | &nbsp;&nbsp;**Comp** | &nbsp;&nbsp;**Cut Grades** | &nbsp;&nbsp;**Cut Grades** | &nbsp;&nbsp;**Cut Grades** | &nbsp;&nbsp;**Comps vs Cut** | &nbsp;&nbsp;**Comps vs Cut** | &nbsp;&nbsp;**Comps vs Cut** | &nbsp;&nbsp;**Assays vs Cut** | &nbsp;&nbsp;**Assays vs Cut** | &nbsp;&nbsp;**Assays vs Cut** |
| &nbsp;&nbsp;**Mine** | &nbsp;&nbsp;**Vein #** | &nbsp;&nbsp;**Max** | &nbsp;&nbsp;**Mean** | &nbsp;&nbsp;**CV** | &nbsp;&nbsp;**Max** | &nbsp;&nbsp;**Mean** | &nbsp;&nbsp;**CV** | &nbsp;&nbsp;**Max** | &nbsp;&nbsp;**Mean** | &nbsp;&nbsp;**CV** | &nbsp;&nbsp;**Max** | &nbsp;&nbsp;**Mean** | &nbsp;&nbsp;**CV** | &nbsp;&nbsp;**Max** | &nbsp;&nbsp;**Mean** | &nbsp;&nbsp;**CV** |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1000** | &nbsp;&nbsp;48.95 | &nbsp;&nbsp;1.95 | &nbsp;&nbsp;1.9 | &nbsp;&nbsp;45.12 | &nbsp;&nbsp;1.94 | &nbsp;&nbsp;1.7 | &nbsp;&nbsp;11 | &nbsp;&nbsp;1.80 | &nbsp;&nbsp;1.3 | &nbsp;&nbsp;-76% | &nbsp;&nbsp;-8% | &nbsp;&nbsp;-24% | &nbsp;&nbsp;-78% | &nbsp;&nbsp;**-8%** | &nbsp;&nbsp;**-33%** |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1001** | &nbsp;&nbsp;33.32 | &nbsp;&nbsp;2.25 | &nbsp;&nbsp;1.6 | &nbsp;&nbsp;33.32 | &nbsp;&nbsp;2.23 | &nbsp;&nbsp;1.5 | &nbsp;&nbsp;12 | &nbsp;&nbsp;2.12 | &nbsp;&nbsp;1.3 | &nbsp;&nbsp;-64% | &nbsp;&nbsp;-5% | &nbsp;&nbsp;-12% | &nbsp;&nbsp;-64% | &nbsp;&nbsp;**-6%** | &nbsp;&nbsp;**-16%** |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1002** | &nbsp;&nbsp;35.12 | &nbsp;&nbsp;2.34 | &nbsp;&nbsp;1.4 | &nbsp;&nbsp;23.19 | &nbsp;&nbsp;2.29 | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;11 | &nbsp;&nbsp;2.23 | &nbsp;&nbsp;1.1 | &nbsp;&nbsp;-53% | &nbsp;&nbsp;-3% | &nbsp;&nbsp;-9% | &nbsp;&nbsp;-69% | &nbsp;&nbsp;**-5%** | &nbsp;&nbsp;**-21%** |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;48.95 | &nbsp;&nbsp;1.99 | &nbsp;&nbsp;1.8 | &nbsp;&nbsp;45.12 | &nbsp;&nbsp;1.99 | &nbsp;&nbsp;1.6 | &nbsp;&nbsp;12 | &nbsp;&nbsp;1.85 | &nbsp;&nbsp;1.3 | &nbsp;&nbsp;-73% | &nbsp;&nbsp;-7% | &nbsp;&nbsp;-22% | &nbsp;&nbsp;-75% | &nbsp;&nbsp;**-7%** | &nbsp;&nbsp;**-31%** |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1010** | &nbsp;&nbsp;71.91 | &nbsp;&nbsp;3.13 | &nbsp;&nbsp;1.3 | &nbsp;&nbsp;48.29 | &nbsp;&nbsp;3.14 | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;15 | &nbsp;&nbsp;3.04 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;-69% | &nbsp;&nbsp;-3% | &nbsp;&nbsp;-11% | &nbsp;&nbsp;-79% | &nbsp;&nbsp;**-3%** | &nbsp;&nbsp;**-18%** |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1011** | &nbsp;&nbsp;51.87 | &nbsp;&nbsp;4.52 | &nbsp;&nbsp;1.1 | &nbsp;&nbsp;51.87 | &nbsp;&nbsp;4.59 | &nbsp;&nbsp;1.1 | &nbsp;&nbsp;21 | &nbsp;&nbsp;4.51 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;-60% | &nbsp;&nbsp;-2% | &nbsp;&nbsp;-6% | &nbsp;&nbsp;-60% | &nbsp;&nbsp;0% | &nbsp;&nbsp;**-9%** |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1012** | &nbsp;&nbsp;47.61 | &nbsp;&nbsp;6.08 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;47.61 | &nbsp;&nbsp;5.83 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;17 | &nbsp;&nbsp;5.46 | &nbsp;&nbsp;0.8 | &nbsp;&nbsp;-64% | &nbsp;&nbsp;-6% | &nbsp;&nbsp;-17% | &nbsp;&nbsp;-64% | &nbsp;&nbsp;**-10%** | &nbsp;&nbsp;**-17%** |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;71.91 | &nbsp;&nbsp;3.79 | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;51.87 | &nbsp;&nbsp;3.81 | &nbsp;&nbsp;1.1 | &nbsp;&nbsp;21 | &nbsp;&nbsp;3.71 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;-60% | &nbsp;&nbsp;-3% | &nbsp;&nbsp;-8% | &nbsp;&nbsp;-71% | &nbsp;&nbsp;-2% | &nbsp;&nbsp;**-13%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1020** | &nbsp;&nbsp;62.32 | &nbsp;&nbsp;10.27 | &nbsp;&nbsp;1.1 | &nbsp;&nbsp;62.32 | &nbsp;&nbsp;10.12 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;32 | &nbsp;&nbsp;9.64 | &nbsp;&nbsp;0.9 | &nbsp;&nbsp;-49% | &nbsp;&nbsp;-5% | &nbsp;&nbsp;-9% | &nbsp;&nbsp;-49% | &nbsp;&nbsp;**-6%** | &nbsp;&nbsp;**-14%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1021** | &nbsp;&nbsp;49.15 | &nbsp;&nbsp;5.77 | &nbsp;&nbsp;1.3 | &nbsp;&nbsp;52.58 | &nbsp;&nbsp;5.87 | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;33 | &nbsp;&nbsp;5.79 | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;-37% | &nbsp;&nbsp;-1% | &nbsp;&nbsp;-4% | &nbsp;&nbsp;-33% | &nbsp;&nbsp;0% | &nbsp;&nbsp;**-7%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1022** | &nbsp;&nbsp;66.49 | &nbsp;&nbsp;10.53 | &nbsp;&nbsp;1.1 | &nbsp;&nbsp;66.49 | &nbsp;&nbsp;10.41 | &nbsp;&nbsp;1.1 | &nbsp;&nbsp;32 | &nbsp;&nbsp;9.92 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;-52% | &nbsp;&nbsp;-5% | &nbsp;&nbsp;-9% | &nbsp;&nbsp;-52% | &nbsp;&nbsp;**-6%** | &nbsp;&nbsp;**-9%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1023** | &nbsp;&nbsp;65.10 | &nbsp;&nbsp;11.29 | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;65.10 | &nbsp;&nbsp;10.81 | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;19 | &nbsp;&nbsp;8.08 | &nbsp;&nbsp;0.9 | &nbsp;&nbsp;-71% | &nbsp;&nbsp;-25% | &nbsp;&nbsp;-24% | &nbsp;&nbsp;-71% | &nbsp;&nbsp;**-28%** | &nbsp;&nbsp;**-22%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1024** | &nbsp;&nbsp;41.62 | &nbsp;&nbsp;4.17 | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;29.40 | &nbsp;&nbsp;4.12 | &nbsp;&nbsp;1.1 | &nbsp;&nbsp;18 | &nbsp;&nbsp;4.04 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;-39% | &nbsp;&nbsp;-2% | &nbsp;&nbsp;-5% | &nbsp;&nbsp;-57% | &nbsp;&nbsp;**-3%** | &nbsp;&nbsp;**-13%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1025** | &nbsp;&nbsp;51.92 | &nbsp;&nbsp;6.47 | &nbsp;&nbsp;1.1 | &nbsp;&nbsp;51.92 | &nbsp;&nbsp;6.26 | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;25 | &nbsp;&nbsp;5.90 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;-52% | &nbsp;&nbsp;-6% | &nbsp;&nbsp;-16% | &nbsp;&nbsp;-52% | &nbsp;&nbsp;**-9%** | &nbsp;&nbsp;**-14%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1026** | &nbsp;&nbsp;46.23 | &nbsp;&nbsp;4.13 | &nbsp;&nbsp;1.4 | &nbsp;&nbsp;44.53 | &nbsp;&nbsp;4.58 | &nbsp;&nbsp;1.3 | &nbsp;&nbsp;21 | &nbsp;&nbsp;4.35 | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;-53% | &nbsp;&nbsp;-5% | &nbsp;&nbsp;-12% | &nbsp;&nbsp;-55% | &nbsp;&nbsp;**5%** | &nbsp;&nbsp;**-15%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1032** | &nbsp;&nbsp;31.84 | &nbsp;&nbsp;5.56 | &nbsp;&nbsp;1.3 | &nbsp;&nbsp;31.84 | &nbsp;&nbsp;5.54 | &nbsp;&nbsp;1.3 | &nbsp;&nbsp;24.5 | &nbsp;&nbsp;5.32 | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;-23% | &nbsp;&nbsp;-4% | &nbsp;&nbsp;-6% | &nbsp;&nbsp;-23% | &nbsp;&nbsp;**-4%** | &nbsp;&nbsp;**-6%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;66.49 | &nbsp;&nbsp;8.02 | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;66.49 | &nbsp;&nbsp;7.89 | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;33 | &nbsp;&nbsp;7.33 | &nbsp;&nbsp;1.1 | &nbsp;&nbsp;-50% | &nbsp;&nbsp;-7% | &nbsp;&nbsp;-11% | &nbsp;&nbsp;-50% | &nbsp;&nbsp;**-9%** | &nbsp;&nbsp;**-13%** |

---

The outlier analysis for silver as shown in Table 14-17 also show a marked reduction of metal and variability from assay versus cut composites as shown as red bold.

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-25

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| ![](logo_001.jpg) | ![](ex99-28_logo1.jpg) |

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**Table 14-17: Outlier Cutting Analysis for Silver**

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| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Mine** | &nbsp;&nbsp;**Vein #** | &nbsp;&nbsp;**Assays** | &nbsp;&nbsp;**Assays** | &nbsp;&nbsp;**Assays** | &nbsp;&nbsp;**Comp** | &nbsp;&nbsp;**Comp** | &nbsp;&nbsp;**Comp** | &nbsp;&nbsp;**Cut Grades** | &nbsp;&nbsp;**Cut Grades** | &nbsp;&nbsp;**Cut Grades** | &nbsp;&nbsp;**Comps vs Cut** | &nbsp;&nbsp;**Comps vs Cut** | &nbsp;&nbsp;**Comps vs Cut** | &nbsp;&nbsp;**Assays vs Cut** | &nbsp;&nbsp;**Assays vs Cut** | &nbsp;&nbsp;**Assays vs Cut** |
| &nbsp;&nbsp;**Mine** | &nbsp;&nbsp;**Vein #** | &nbsp;&nbsp;**Max** | &nbsp;&nbsp;**Mean** | &nbsp;&nbsp;**CV** | &nbsp;&nbsp;**Max** | &nbsp;&nbsp;**Mean** | &nbsp;&nbsp;**CV** | &nbsp;&nbsp;**Max** | &nbsp;&nbsp;**Mean** | &nbsp;&nbsp;**CV** | &nbsp;&nbsp;**Max** | &nbsp;&nbsp;**Mean** | &nbsp;&nbsp;**CV** | &nbsp;&nbsp;**Max** | &nbsp;&nbsp;**Mean** | &nbsp;&nbsp;**CV** |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1000** | &nbsp;&nbsp;4404 | &nbsp;&nbsp;157 | &nbsp;&nbsp;1.5 | &nbsp;&nbsp;3304 | &nbsp;&nbsp;157 | &nbsp;&nbsp;1.3 | &nbsp;&nbsp;721 | &nbsp;&nbsp;148 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;-78% | &nbsp;&nbsp;-6% | &nbsp;&nbsp;-21% | &nbsp;&nbsp;-84% | &nbsp;&nbsp;**-6%** | &nbsp;&nbsp;**-31%** |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1001** | &nbsp;&nbsp;1813 | &nbsp;&nbsp;168 | &nbsp;&nbsp;1.3 | &nbsp;&nbsp;1813 | &nbsp;&nbsp;165 | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;631 | &nbsp;&nbsp;155 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;-65% | &nbsp;&nbsp;-6% | &nbsp;&nbsp;-17% | &nbsp;&nbsp;-65% | &nbsp;&nbsp;**-8%** | &nbsp;&nbsp;**-19%** |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1002** | &nbsp;&nbsp;2787 | &nbsp;&nbsp;146 | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;2529 | &nbsp;&nbsp;143 | &nbsp;&nbsp;1.1 | &nbsp;&nbsp;715 | &nbsp;&nbsp;140 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;-72% | &nbsp;&nbsp;-2% | &nbsp;&nbsp;-11% | &nbsp;&nbsp;-74% | &nbsp;&nbsp;**-4%** | &nbsp;&nbsp;**-21%** |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;4404 | &nbsp;&nbsp;157 | &nbsp;&nbsp;1.5 | &nbsp;&nbsp;3304 | &nbsp;&nbsp;157 | &nbsp;&nbsp;1.3 | &nbsp;&nbsp;721 | &nbsp;&nbsp;148 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;-78% | &nbsp;&nbsp;-5% | &nbsp;&nbsp;-20% | &nbsp;&nbsp;-84% | &nbsp;&nbsp;**-6%** | &nbsp;&nbsp;**-30%** |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1010** | &nbsp;&nbsp;9735 | &nbsp;&nbsp;342 | &nbsp;&nbsp;1.6 | &nbsp;&nbsp;8116 | &nbsp;&nbsp;343 | &nbsp;&nbsp;1.5 | &nbsp;&nbsp;1380 | &nbsp;&nbsp;311 | &nbsp;&nbsp;1.1 | &nbsp;&nbsp;-83% | &nbsp;&nbsp;-9% | &nbsp;&nbsp;-25% | &nbsp;&nbsp;-86% | &nbsp;&nbsp;**-9%** | &nbsp;&nbsp;**-31%** |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1011** | &nbsp;&nbsp;6054 | &nbsp;&nbsp;387 | &nbsp;&nbsp;1.1 | &nbsp;&nbsp;6054 | &nbsp;&nbsp;391 | &nbsp;&nbsp;1.1 | &nbsp;&nbsp;1634 | &nbsp;&nbsp;377 | &nbsp;&nbsp;0.9 | &nbsp;&nbsp;-73% | &nbsp;&nbsp;-4% | &nbsp;&nbsp;-21% | &nbsp;&nbsp;-73% | &nbsp;&nbsp;**-2%** | &nbsp;&nbsp;**-23%** |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1012** | &nbsp;&nbsp;3400 | &nbsp;&nbsp;423 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;3400 | &nbsp;&nbsp;394 | &nbsp;&nbsp;1.1 | &nbsp;&nbsp;1600 | &nbsp;&nbsp;376 | &nbsp;&nbsp;0.8 | &nbsp;&nbsp;-53% | &nbsp;&nbsp;-5% | &nbsp;&nbsp;-21% | &nbsp;&nbsp;-53% | &nbsp;&nbsp;**-11%** | &nbsp;&nbsp;**-15%** |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;9735 | &nbsp;&nbsp;362 | &nbsp;&nbsp;1.4 | &nbsp;&nbsp;8116 | &nbsp;&nbsp;364 | &nbsp;&nbsp;1.3 | &nbsp;&nbsp;1634 | &nbsp;&nbsp;340 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;-80% | &nbsp;&nbsp;-7% | &nbsp;&nbsp;-24% | &nbsp;&nbsp;-83% | &nbsp;&nbsp;**-6%** | &nbsp;&nbsp;**-28%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1020** | &nbsp;&nbsp;9590 | &nbsp;&nbsp;966 | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;9590 | &nbsp;&nbsp;924 | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;3411 | &nbsp;&nbsp;878 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;-64% | &nbsp;&nbsp;-5% | &nbsp;&nbsp;-12% | &nbsp;&nbsp;-64% | &nbsp;&nbsp;**-9%** | &nbsp;&nbsp;**-16%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1021** | &nbsp;&nbsp;21114 | &nbsp;&nbsp;1134 | &nbsp;&nbsp;1.1 | &nbsp;&nbsp;21114 | &nbsp;&nbsp;1138 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;3439 | &nbsp;&nbsp;1073 | &nbsp;&nbsp;0.8 | &nbsp;&nbsp;-84% | &nbsp;&nbsp;-6% | &nbsp;&nbsp;-18% | &nbsp;&nbsp;-84% | &nbsp;&nbsp;**-5%** | &nbsp;&nbsp;**-22%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1022** | &nbsp;&nbsp;18584 | &nbsp;&nbsp;1918 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;18584 | &nbsp;&nbsp;1846 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;4403 | &nbsp;&nbsp;1669 | &nbsp;&nbsp;0.8 | &nbsp;&nbsp;-76% | &nbsp;&nbsp;-10% | &nbsp;&nbsp;-21% | &nbsp;&nbsp;-76% | &nbsp;&nbsp;**-13%** | &nbsp;&nbsp;**-21%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1023** | &nbsp;&nbsp;8713 | &nbsp;&nbsp;1202 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;8713 | &nbsp;&nbsp;1159 | &nbsp;&nbsp;1.1 | &nbsp;&nbsp;1890 | &nbsp;&nbsp;894 | &nbsp;&nbsp;0.8 | &nbsp;&nbsp;-78% | &nbsp;&nbsp;-23% | &nbsp;&nbsp;-26% | &nbsp;&nbsp;-78% | &nbsp;&nbsp;**-26%** | &nbsp;&nbsp;**-24%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1024** | &nbsp;&nbsp;10399 | &nbsp;&nbsp;459 | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;10399 | &nbsp;&nbsp;457 | &nbsp;&nbsp;1.1 | &nbsp;&nbsp;2330 | &nbsp;&nbsp;449 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;-78% | &nbsp;&nbsp;-2% | &nbsp;&nbsp;-11% | &nbsp;&nbsp;-78% | &nbsp;&nbsp;**-2%** | &nbsp;&nbsp;**-18%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1025** | &nbsp;&nbsp;4484 | &nbsp;&nbsp;612 | &nbsp;&nbsp;0.9 | &nbsp;&nbsp;4484 | &nbsp;&nbsp;593 | &nbsp;&nbsp;0.9 | &nbsp;&nbsp;2450 | &nbsp;&nbsp;581 | &nbsp;&nbsp;0.8 | &nbsp;&nbsp;-45% | &nbsp;&nbsp;-2% | &nbsp;&nbsp;-9% | &nbsp;&nbsp;-45% | &nbsp;&nbsp;**-5%** | &nbsp;&nbsp;**-6%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1026** | &nbsp;&nbsp;6698 | &nbsp;&nbsp;645 | &nbsp;&nbsp;1.4 | &nbsp;&nbsp;6698 | &nbsp;&nbsp;604 | &nbsp;&nbsp;1.4 | &nbsp;&nbsp;1750 | &nbsp;&nbsp;513 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;-74% | &nbsp;&nbsp;-15% | &nbsp;&nbsp;-30% | &nbsp;&nbsp;-74% | &nbsp;&nbsp;**-21%** | &nbsp;&nbsp;**-31%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**1032** | &nbsp;&nbsp;3766 | &nbsp;&nbsp;533 | &nbsp;&nbsp;1.1 | &nbsp;&nbsp;3766 | &nbsp;&nbsp;531 | &nbsp;&nbsp;1.1 | &nbsp;&nbsp;2450 | &nbsp;&nbsp;513 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;-35% | &nbsp;&nbsp;-3% | &nbsp;&nbsp;-11% | &nbsp;&nbsp;-35% | &nbsp;&nbsp;**-4%** | &nbsp;&nbsp;**-11%** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;21114 | &nbsp;&nbsp;1128 | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;21114 | &nbsp;&nbsp;1101 | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;4403 | &nbsp;&nbsp;1007 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;-79% | &nbsp;&nbsp;-9% | &nbsp;&nbsp;-18% | &nbsp;&nbsp;-79% | &nbsp;&nbsp;**-11%** | &nbsp;&nbsp;**-19%** |

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SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-26

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| ![](logo_001.jpg) | ![](ex99-28_logo1.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.6 Specific
 Gravity Estimation

Bulk densities were based on a total of 1,032 individual measurements taken by Company field personnel throughout the Caballo Blanco deposit. These density values ranged om 1.07 t/m<sup>3</sup> to 8.68 t/m<sup>3</sup> and average to 3.28 t/m<sup>3</sup>. However, based on the metal content as for two samples with densities of 1.07 t/m<sup>3</sup> and 1.77 t/m<sup>3</sup>, it appears that these may be outliers or more likely errors.

A multiple-element linear regression formula was used to determine the density, which includes weighted factors for the zinc, lead and iron. Figure 14-21 through Figure 14-23 shows the scatterplots which illustrates comparable relationships for density versus zinc, lead and iron, respectively. It is important to note that silver has not been considered due to the low correlatability with density as shown in Figure 14-24.

**Figure 14-21: Scatterplot of Zinc vs Density**

![](ex99-28_089.jpg)

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-27

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|:---|:---|
| ![](logo_001.jpg) | ![](ex99-28_logo1.jpg) |

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**Figure 14-22: Scatterplot of Lead vs Density**

![](ex99-28_090.jpg)

**Figure 14-23: Scatterplot of Iron vs Density**

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-28

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|:---|:---|
| ![](logo_001.jpg) | ![](ex99-28_logo1.jpg) |

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**Figure 14-24: Scatterplot of Silver vs Density**

![](ex99-28_092.jpg)

The multiple-element linear regression formula was calculated with the use of a Python script based on the 1,032 density samples analyzed locally which has been consistent 2021. No new samples were added to the database however it recommended that going forward additional samples be collected and measured to re-test the regression formula.

Due to the fact that not all of the dataset has Fe analysis, two formulas have been established for the calculation of density, the first utilizing Zn, Pb and Fe whilst the second considers only Zn and Pb. There the Multiple Linear Regression Formula is in the form of SG<sub>calculated</sub> = Intersection + Coefficient \* Assay Value as follows:

● If the Fe analysis is available:

Density =2.53757+0.0176\*Zn+0.05611\*Pb+0.04176\*Fe

● If the Fe analysis is not available:

Density = 2.83179+0.02252\*Zn+0.04516\*Pb

Figure 14-25 and Figure 14-26 shows the scatterplot of measured versus calculated density for each case, with and without iron. Th correlation for the formula with iron is good (R2=0.72) however a handful of outliers are causing a less than ideal result however upon removal of the four outliers the correlation is excellent (R2=0.88). Therefore, going forward is recommended to continue to gather density data in addition to ensuring that iron is included in the analysis.

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-29

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Specific gravities assigned on a block-by-block basis using the calculated values. A default density of 3.1 t/m<sup>3</sup> was assigned to any blocks that were not assigned a calculated value.

**Figure 14-25: Scatterplot of Measured Density vs Calculated Density with Iron**

![](ex99-28_093.jpg)

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-30

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**Figure 14-26: Scatterplot of Measured Density vs Calculated Density without Iron**

![](ex99-28_094.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.7 Block
 Model Definition

The block model used to estimate the resources was defined according to the limits specified in Figure 14-27 through Figure 14-29 for Colquechaquita, Reserva and Tres Amigos, respectively. The block model is orthogonal and non-rotated, reflecting the orientation of the deposit and approximate selective mining unit. The chosen block size was 5 m x 5 m x 5 m and subsequently sub-blocked to 1 m x 0.1 m x 1 m to facilitate underground mine planning and scheduling. Note that MineSight<sup>TM</sup> uses the centroid of the blocks as the origin.

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-31

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**Figure 14-27: Dimensions, Origin and Orientation for Colquechaquita**

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SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-32

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**Figure 14-28: Dimensions, Origin and Orientation for Reserva**

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SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-33

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**Figure 14-29: Dimensions, Origin and Orientation for Tres Amigos**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.8 Resource
 Estimation Methodology

Experimental variograms and variogram models in the form of correlograms were generated for silver, lead and zinc grades which were utilized for the estimation via ordinary kriging. However, Wendy and Wendy Techo (1001 and 1002) at Reserva, Camila (1012) at Colquechaquita and Central Este, Ramo Central Este, Ramo Central Este and Tatiana (1025, 1026, 1028 and 1032) at Tres Amigos do not have sufficient data to generate meaningful variogram results. For this reason, it was decided at this time to use inverse distance to the second power for these veins as the interpolator.

The resource estimation plan includes the following items:

● Mineralized zone code of modelled mineralization in each block;

● Estimated block silver, lead, and zinc grades by ordinary kriging with the exception of inverse distance to the second power being employed for Wendy and Wendy Techo (1001 and 1002) at Reserva, Camila (1012) at Colquechaquita and Central Este, Ramo Central Este, Ramo Central Este and Tatiana (1025, 1026, 1028 and 1032) at Tres Amigos;

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● Three-pass estimation strategy for each mineralized vein domain as detailed in Table 14-18. The three passes enable better estimation of local metal grades and infill of interpreted solids and to facilitate classification; and

● Assignment on pillars, sterilized and mined out areas coded into the block model for exclusion.

Table 14-18 summarizes the search ellipse dimensions for the two estimation passes for each zone.

**Table 14-18: Search Ellipse Parameters for the Caballo Blanco Deposit**

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Mine** | &nbsp;&nbsp;**Vein** | &nbsp;&nbsp;**Pass** | &nbsp;&nbsp;**Range 1 (m)** | &nbsp;&nbsp;**Range 2 (m)** | &nbsp;&nbsp;**Range 3 (m)** | &nbsp;&nbsp;**Min # Composites** | &nbsp;&nbsp;**Max # Composites** |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;1000 | &nbsp;&nbsp;1 | &nbsp;&nbsp;46 | &nbsp;&nbsp;27 | &nbsp;&nbsp;12 | &nbsp;&nbsp;5 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Reserva** |  | &nbsp;&nbsp;2 | &nbsp;&nbsp;69 | &nbsp;&nbsp;41 | &nbsp;&nbsp;19 | &nbsp;&nbsp;5 | &nbsp;&nbsp;25 |
| &nbsp;&nbsp;**Reserva** |  | &nbsp;&nbsp;3 | &nbsp;&nbsp;138 | &nbsp;&nbsp;82 | &nbsp;&nbsp;38 | &nbsp;&nbsp;3 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;1001 | &nbsp;&nbsp;1 | &nbsp;&nbsp;29 | &nbsp;&nbsp;39 | &nbsp;&nbsp;13 | &nbsp;&nbsp;5 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Reserva** |  | &nbsp;&nbsp;2 | &nbsp;&nbsp;43 | &nbsp;&nbsp;58 | &nbsp;&nbsp;19 | &nbsp;&nbsp;5 | &nbsp;&nbsp;40 |
| &nbsp;&nbsp;**Reserva** |  | &nbsp;&nbsp;3 | &nbsp;&nbsp;86 | &nbsp;&nbsp;116 | &nbsp;&nbsp;38 | &nbsp;&nbsp;1 | &nbsp;&nbsp;23 |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;1002 | &nbsp;&nbsp;1 | &nbsp;&nbsp;30 | &nbsp;&nbsp;18 | &nbsp;&nbsp;13 | &nbsp;&nbsp;5 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Reserva** |  | &nbsp;&nbsp;2 | &nbsp;&nbsp;45 | &nbsp;&nbsp;27 | &nbsp;&nbsp;19 | &nbsp;&nbsp;5 | &nbsp;&nbsp;35 |
| &nbsp;&nbsp;**Reserva** |  | &nbsp;&nbsp;3 | &nbsp;&nbsp;90 | &nbsp;&nbsp;54 | &nbsp;&nbsp;38 | &nbsp;&nbsp;2 | &nbsp;&nbsp;25 |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;1010 | &nbsp;&nbsp;1 | &nbsp;&nbsp;46 | &nbsp;&nbsp;34 | &nbsp;&nbsp;17 | &nbsp;&nbsp;4 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Colquechaquita** |  | &nbsp;&nbsp;2 | &nbsp;&nbsp;69 | &nbsp;&nbsp;51 | &nbsp;&nbsp;25 | &nbsp;&nbsp;4 | &nbsp;&nbsp;22 |
| &nbsp;&nbsp;**Colquechaquita** |  | &nbsp;&nbsp;3 | &nbsp;&nbsp;138 | &nbsp;&nbsp;102 | &nbsp;&nbsp;50 | &nbsp;&nbsp;2 | &nbsp;&nbsp;15 |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;1011 | &nbsp;&nbsp;1 | &nbsp;&nbsp;34 | &nbsp;&nbsp;27 | &nbsp;&nbsp;23 | &nbsp;&nbsp;6 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Colquechaquita** |  | &nbsp;&nbsp;2 | &nbsp;&nbsp;51 | &nbsp;&nbsp;41 | &nbsp;&nbsp;35 | &nbsp;&nbsp;5 | &nbsp;&nbsp;23 |
| &nbsp;&nbsp;**Colquechaquita** |  | &nbsp;&nbsp;3 | &nbsp;&nbsp;102 | &nbsp;&nbsp;82 | &nbsp;&nbsp;70 | &nbsp;&nbsp;3 | &nbsp;&nbsp;15 |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;1012 | &nbsp;&nbsp;1 | &nbsp;&nbsp;27 | &nbsp;&nbsp;35 | &nbsp;&nbsp;14 | &nbsp;&nbsp;5 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Colquechaquita** |  | &nbsp;&nbsp;2 | &nbsp;&nbsp;41 | &nbsp;&nbsp;52 | &nbsp;&nbsp;21 | &nbsp;&nbsp;4 | &nbsp;&nbsp;26 |
| &nbsp;&nbsp;**Colquechaquita** |  | &nbsp;&nbsp;3 | &nbsp;&nbsp;82 | &nbsp;&nbsp;104 | &nbsp;&nbsp;42 | &nbsp;&nbsp;2 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;1020 | &nbsp;&nbsp;1 | &nbsp;&nbsp;25 | &nbsp;&nbsp;26 | &nbsp;&nbsp;13 | &nbsp;&nbsp;5 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Tres Amigos** |  | &nbsp;&nbsp;2 | &nbsp;&nbsp;38 | &nbsp;&nbsp;39 | &nbsp;&nbsp;20 | &nbsp;&nbsp;5 | &nbsp;&nbsp;24 |
| &nbsp;&nbsp;**Tres Amigos** |  | &nbsp;&nbsp;3 | &nbsp;&nbsp;76 | &nbsp;&nbsp;78 | &nbsp;&nbsp;40 | &nbsp;&nbsp;2 | &nbsp;&nbsp;25 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;1021 | &nbsp;&nbsp;1 | &nbsp;&nbsp;28 | &nbsp;&nbsp;30 | &nbsp;&nbsp;14 | &nbsp;&nbsp;3 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Tres Amigos** |  | &nbsp;&nbsp;2 | &nbsp;&nbsp;42 | &nbsp;&nbsp;45 | &nbsp;&nbsp;21 | &nbsp;&nbsp;5 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Tres Amigos** |  | &nbsp;&nbsp;3 | &nbsp;&nbsp;84 | &nbsp;&nbsp;90 | &nbsp;&nbsp;42 | &nbsp;&nbsp;2 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;1022 | &nbsp;&nbsp;1 | &nbsp;&nbsp;39 | &nbsp;&nbsp;26 | &nbsp;&nbsp;15 | &nbsp;&nbsp;4 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Tres Amigos** |  | &nbsp;&nbsp;2 | &nbsp;&nbsp;58 | &nbsp;&nbsp;39 | &nbsp;&nbsp;22 | &nbsp;&nbsp;4 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Tres Amigos** |  | &nbsp;&nbsp;3 | &nbsp;&nbsp;116 | &nbsp;&nbsp;78 | &nbsp;&nbsp;44 | &nbsp;&nbsp;2 | &nbsp;&nbsp;24 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;1023 | &nbsp;&nbsp;1 | &nbsp;&nbsp;21 | &nbsp;&nbsp;19 | &nbsp;&nbsp;13 | &nbsp;&nbsp;5 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Tres Amigos** |  | &nbsp;&nbsp;2 | &nbsp;&nbsp;31 | &nbsp;&nbsp;29 | &nbsp;&nbsp;20 | &nbsp;&nbsp;4 | &nbsp;&nbsp;35 |
| &nbsp;&nbsp;**Tres Amigos** |  | &nbsp;&nbsp;3 | &nbsp;&nbsp;62 | &nbsp;&nbsp;58 | &nbsp;&nbsp;40 | &nbsp;&nbsp;2 | &nbsp;&nbsp;23 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;1024 | &nbsp;&nbsp;1 | &nbsp;&nbsp;23 | &nbsp;&nbsp;24 | &nbsp;&nbsp;13 | &nbsp;&nbsp;5 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Tres Amigos** |  | &nbsp;&nbsp;2 | &nbsp;&nbsp;34 | &nbsp;&nbsp;36 | &nbsp;&nbsp;20 | &nbsp;&nbsp;4 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Tres Amigos** |  | &nbsp;&nbsp;3 | &nbsp;&nbsp;68 | &nbsp;&nbsp;72 | &nbsp;&nbsp;40 | &nbsp;&nbsp;2 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;1025 | &nbsp;&nbsp;1 | &nbsp;&nbsp;22 | &nbsp;&nbsp;20 | &nbsp;&nbsp;17 | &nbsp;&nbsp;6 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Tres Amigos** |  | &nbsp;&nbsp;2 | &nbsp;&nbsp;33 | &nbsp;&nbsp;30 | &nbsp;&nbsp;26 | &nbsp;&nbsp;5 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Tres Amigos** |  | &nbsp;&nbsp;3 | &nbsp;&nbsp;66 | &nbsp;&nbsp;60 | &nbsp;&nbsp;52 | &nbsp;&nbsp;3 | &nbsp;&nbsp;23 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;1026 | &nbsp;&nbsp;1 | &nbsp;&nbsp;21 | &nbsp;&nbsp;21 | &nbsp;&nbsp;13 | &nbsp;&nbsp;5 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Tres Amigos** |  | &nbsp;&nbsp;2 | &nbsp;&nbsp;32 | &nbsp;&nbsp;31 | &nbsp;&nbsp;20 | &nbsp;&nbsp;4 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Tres Amigos** |  | &nbsp;&nbsp;3 | &nbsp;&nbsp;64 | &nbsp;&nbsp;62 | &nbsp;&nbsp;40 | &nbsp;&nbsp;2 | &nbsp;&nbsp;21 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;1028 | &nbsp;&nbsp;1 | &nbsp;&nbsp;23 | &nbsp;&nbsp;22 | &nbsp;&nbsp;13 | &nbsp;&nbsp;5 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Tres Amigos** |  | &nbsp;&nbsp;2 | &nbsp;&nbsp;35 | &nbsp;&nbsp;33 | &nbsp;&nbsp;20 | &nbsp;&nbsp;4 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Tres Amigos** |  | &nbsp;&nbsp;3 | &nbsp;&nbsp;70 | &nbsp;&nbsp;66 | &nbsp;&nbsp;40 | &nbsp;&nbsp;3 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;1032 | &nbsp;&nbsp;1 | &nbsp;&nbsp;22 | &nbsp;&nbsp;20 | &nbsp;&nbsp;17 | &nbsp;&nbsp;5 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Tres Amigos** |  | &nbsp;&nbsp;1 | &nbsp;&nbsp;33 | &nbsp;&nbsp;30 | &nbsp;&nbsp;26 | &nbsp;&nbsp;5 | &nbsp;&nbsp;20 |
| &nbsp;&nbsp;**Tres Amigos** |  | &nbsp;&nbsp;1 | &nbsp;&nbsp;66 | &nbsp;&nbsp;60 | &nbsp;&nbsp;52 | &nbsp;&nbsp;3 | &nbsp;&nbsp;20 |

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SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-35

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.9 Mineral
 Resource Classification

Mineral resources were estimated in conformity with generally accepted CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (2019). Mineral resources are not mineral reserves and do not have demonstrated economic viability.

The mineral resources may be impacted by further infill and exploration drilling that may result in an increase or decrease in future resource evaluations. The mineral resources may also be affected by subsequent assessment of mining, environmental, processing, permitting, taxation, socio-economic and other factors. There is insufficient information in this early stage of study to assess the extent to which the mineral resources will be affected by factors such as these that are more suitably assessed in a scoping or conceptual study.

Mineral resources for the Caballo Blanco deposit were classified according to the CIM Definition Standards for Mineral Resources and Mineral Reserves (2014) as approved by Garth Kirkham, P.Geo., an "independent qualified person" as defined by National Instrument 43-101.

Drillhole spacing in the Caballo Blanco deposit is sufficient for preliminary geostatistical analysis and evaluating spatial grade variability. Kirkham Geosystems is, therefore, of the opinion that the amount of sample data is adequate to demonstrate very good confidence in the grade estimates for the deposit.

The estimated blocks were classified according to the following:

● Confidence in interpretation of the mineralized zones;

● Number of data used to estimate a block;

● Number of composites allowed per drillhole; and

● Distance to nearest composite used to estimate a block.

The classification of resources was based primarily on distance to the nearest composite; however, all the quantitative measures, as listed here, were inspected and taken into consideration. In addition, the classification of resources for each zone was considered individually by virtue of their relative depth from surface and the ability to derive meaningful geostatistical results.

The estimation plan entailed a multiple pass strategy where each pass utilized increasingly restrictive search distances and parameters. Each individual vein employs differing search distances and parameters as listed in Table 14-18. Therefore, blocks that are estimated within the first pass are assigned as measured, those estimated within the second pass are assigned indicated and those estimated in the third pass are assigned as inferred.

Furthermore, an interpreted boundary was created for the indicated and inferred threshold in order to exclude orphans and reduce "spotted dog" effect. The remaining blocks may be unclassified and may be considered as geologic potential for further exploration.

Furthermore, in consideration for the requirement for resources to possess a "reasonable prospect of eventual economic extraction" (RP3E), underground mineable shapes were created that displayed continuity based on cut-off grades and classification. Additionally, these RP3E shapes also took into account must-take material that may fall below cut-off grade but will be extracted by mining in the event that adjacent economic material is extracted making below cut-off material by virtue of the mining costs being paid for.

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-36

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**Figure 14-30: Long Section View of the Reserva Deposit Showing Resource Block by Classification**

![](ex99-28_101.jpg)

**Figure 14-31: Long Section View of the Colquechequita Deposit Showing Resource Block by Classification**

![](ex99-28_102.jpg)

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-37

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**Figure 14-32: Long Section View of the Tres Amigos Deposit Showing Resource Block by Classification**

![](ex99-28_103.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.10 ZnEq
 and NSR Calculation

The mineral resources reported herein are reporting based on zinc equivalent or ZnEq. The formula that was considered for the ZnEq calculation is as follows:

*ZnEq = Zn% + 1.22 x Pb% + 0.051 x Ag (g/t)*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.11 Mined
 Out and Sterilized Areas

Due to the fact that the Colquechaquita, Reserva and Tres Amigos mines have been in continuous production for a significant number of years and are actively producing operations, it is extremely important to identify and exclude areas that are no longer available for future mining. This includes areas that have development and ramping, areas that have been mined out, areas that have been sterilized by mining operations or other reasons and pillars that have been left behind but not accessible. Figure 14-33 through Figure 14-35 shows a plan view of the existing underground development, pillars, mined out areas along with areas sterilized be mining or geotechnical hazards.

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-38

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**Figure 14-33: Plan View of Development, Pillars, Mined Out and Sterilized Areas for the Reserva Mine**

![](ex99-28_104.jpg)

**Figure 14-34: Plan View of Development, Pillars, Mined Out and Sterilized Areas for the Colquechaquita Mine**

![](ex99-28_105.jpg)

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**Figure 14-35: Plan View of Development, Pillars, Mined Out and Sterilized Areas for the Tres Amigos Mine**

![](ex99-28_106.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.12 Resource
 Validation

A graphical validation was completed on the block model. This type of validation serves the following purposes:

● Checks the reasonableness of the estimated grades based on the estimation plan and the nearby composites;

● Checks that the general drift and the local grade trends compare to the drift and local grade trends of the composites;

● Ensures that all blocks in the core of the deposit have been estimated;

● Checks that topography has been properly accounted for;

● Checks against manual approximate estimates of tonnages to determine reasonableness; and

● Inspects for and explains potentially high-grade block estimates in the neighborhood of the extremely high assays.

A full set of cross sections, long sections and plans were used to digitally check the block model; these showed the block grades and composites. There was no indication that a block was wrongly estimated, and it appears that every block grade could be explained as a function of the surrounding composites and the applied estimation plan.

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The validation techniques included the following:

● Visual inspections on a section-by-section and plan-by-plan basis;

● Use of grade-tonnage curves;

● Swath plots comparing kriged estimated block grades with inverse distance and nearest neighbor estimates; and

● Inspection of histograms showing distance from first composite to nearest block, and average distance to blocks for all composites which gives a quantitative measure of confidence that blocks are adequately informed in addition to assisting in the classification of resources.

**Figure 14-36: Long Section View of Reserva Deposit Block Model with ZnEq Cut-off Grades**

![](ex99-28_107.jpg)

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-41

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**Figure 14-37: Long Section View of Reserva Deposit Block Model with ZnEq Cut-off Grades with Mined Out and Sterilized Areas (blue)**

![](ex99-28_108.jpg)

**Figure 14-38: Long Section View of Colquechaquita Deposit Block Model with ZnEq Cut-off Grades**

![](ex99-28_109.jpg)

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-42

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**Figure 14-39: Long Section View of Colquechaquita Deposit Block Model with ZnEq Cut-off Grades with Mined Out and Sterilized Areas (blue)**

![](ex99-28_110.jpg)

**Figure 14-40: Long Section View of Tres Amigos Deposit (Catalina Veins) Block Model with ZnEq Cut-off Grades**

![](ex99-28_111.jpg)

**Figure 14-41: Long Section View of Tres Amigos Deposit (Catalina Veins) Block Model with ZnEq Cut-off Grades with Mined Out and Sterilized Areas (blue)**

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14.13 Sensitivity
 of the Block Model to Selection Cut-off Grade

The mineral resources are not particularly sensitive to the selection of cut-off grade. Table 14-19 shows the total resources for all metals at varying ZnEq cut-off grades. The reader is cautioned that these values should not be misconstrued as a mineral reserve. The reported quantities and grades are only presented as a sensitivity of the resource model to the selection of cut-off grades.

Note that the base case cut-off grades presented in Table 14-19 are based on potentially underground, mineable resources at the base case of 10.0% zinc equivalent.

**Table 14-19: Sensitivity Analyses at Various ZnEq Cut-off Grades for Measured, Indicated and Inferred Resources**

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Classification** | &nbsp;&nbsp;**Cut-off** | &nbsp;&nbsp;**Tonnes** | &nbsp;&nbsp;**ZnEq** | &nbsp;&nbsp;**Sg** | &nbsp;&nbsp;**Thickness** | &nbsp;&nbsp;**Zn** | &nbsp;&nbsp;**Ag** | &nbsp;&nbsp;**Pb** |
| &nbsp;&nbsp;Measured | &nbsp;&nbsp;>=14 | &nbsp;&nbsp;669034 | &nbsp;&nbsp;38.04 | &nbsp;&nbsp;3.29 | &nbsp;&nbsp;1.01 | &nbsp;&nbsp;16.66 | &nbsp;&nbsp;342.29 | &nbsp;&nbsp;3.22 |
| &nbsp;&nbsp;Measured | &nbsp;&nbsp;>=12 | &nbsp;&nbsp;697086 | &nbsp;&nbsp;37.03 | &nbsp;&nbsp;3.28 | &nbsp;&nbsp;1.01 | &nbsp;&nbsp;16.32 | &nbsp;&nbsp;331.36 | &nbsp;&nbsp;3.13 |
| &nbsp;&nbsp;Measured | &nbsp;&nbsp;**>=10** | &nbsp;&nbsp;**725530** | &nbsp;&nbsp;**36.01** | &nbsp;&nbsp;**3.27** | &nbsp;&nbsp;**1.02** | &nbsp;&nbsp;**15.96** | &nbsp;&nbsp;**320.70** | &nbsp;&nbsp;**3.03** |
| &nbsp;&nbsp;Measured | &nbsp;&nbsp;>=8 | &nbsp;&nbsp;746621 | &nbsp;&nbsp;35.25 | &nbsp;&nbsp;3.26 | &nbsp;&nbsp;1.03 | &nbsp;&nbsp;15.67 | &nbsp;&nbsp;313.01 | &nbsp;&nbsp;2.97 |
| &nbsp;&nbsp;Measured | &nbsp;&nbsp;>=6 | &nbsp;&nbsp;758546 | &nbsp;&nbsp;34.81 | &nbsp;&nbsp;3.26 | &nbsp;&nbsp;1.04 | &nbsp;&nbsp;15.49 | &nbsp;&nbsp;308.77 | &nbsp;&nbsp;2.93 |
| &nbsp;&nbsp;Measured | &nbsp;&nbsp;>=4 | &nbsp;&nbsp;766031 | &nbsp;&nbsp;34.52 | &nbsp;&nbsp;3.25 | &nbsp;&nbsp;1.04 | &nbsp;&nbsp;15.36 | &nbsp;&nbsp;306.10 | &nbsp;&nbsp;2.91 |
| &nbsp;&nbsp;Measured | &nbsp;&nbsp;>=2 | &nbsp;&nbsp;768003 | &nbsp;&nbsp;34.44 | &nbsp;&nbsp;3.25 | &nbsp;&nbsp;1.04 | &nbsp;&nbsp;15.32 | &nbsp;&nbsp;305.37 | &nbsp;&nbsp;2.90 |
| &nbsp;&nbsp;Indicated | &nbsp;&nbsp;>=14 | &nbsp;&nbsp;457870 | &nbsp;&nbsp;33.41 | &nbsp;&nbsp;3.25 | &nbsp;&nbsp;1.17 | &nbsp;&nbsp;14.95 | &nbsp;&nbsp;288.89 | &nbsp;&nbsp;3.06 |
| &nbsp;&nbsp;Indicated | &nbsp;&nbsp;>=12 | &nbsp;&nbsp;480024 | &nbsp;&nbsp;32.47 | &nbsp;&nbsp;3.24 | &nbsp;&nbsp;1.17 | &nbsp;&nbsp;14.64 | &nbsp;&nbsp;278.94 | &nbsp;&nbsp;2.96 |
| &nbsp;&nbsp;Indicated | &nbsp;&nbsp;**>=10** | &nbsp;&nbsp;**501558** | &nbsp;&nbsp;**31.55** | &nbsp;&nbsp;**3.23** | &nbsp;&nbsp;**1.17** | &nbsp;&nbsp;**14.32** | &nbsp;&nbsp;**269.31** | &nbsp;&nbsp;**2.86** |
| &nbsp;&nbsp;Indicated | &nbsp;&nbsp;>=8 | &nbsp;&nbsp;518499 | &nbsp;&nbsp;30.81 | &nbsp;&nbsp;3.22 | &nbsp;&nbsp;1.17 | &nbsp;&nbsp;14.04 | &nbsp;&nbsp;262.21 | &nbsp;&nbsp;2.79 |
| &nbsp;&nbsp;Indicated | &nbsp;&nbsp;>=6 | &nbsp;&nbsp;532371 | &nbsp;&nbsp;30.19 | &nbsp;&nbsp;3.21 | &nbsp;&nbsp;1.17 | &nbsp;&nbsp;13.78 | &nbsp;&nbsp;256.41 | &nbsp;&nbsp;2.73 |
| &nbsp;&nbsp;Indicated | &nbsp;&nbsp;>=4 | &nbsp;&nbsp;543690 | &nbsp;&nbsp;29.67 | &nbsp;&nbsp;3.20 | &nbsp;&nbsp;1.17 | &nbsp;&nbsp;13.54 | &nbsp;&nbsp;251.84 | &nbsp;&nbsp;2.69 |
| &nbsp;&nbsp;Indicated | &nbsp;&nbsp;>=2 | &nbsp;&nbsp;546882 | &nbsp;&nbsp;29.52 | &nbsp;&nbsp;3.20 | &nbsp;&nbsp;1.17 | &nbsp;&nbsp;13.48 | &nbsp;&nbsp;250.50 | &nbsp;&nbsp;2.68 |
| &nbsp;&nbsp;Inferred | &nbsp;&nbsp;>=14 | &nbsp;&nbsp;1773439 | &nbsp;&nbsp;29.36 | &nbsp;&nbsp;3.21 | &nbsp;&nbsp;1.10 | &nbsp;&nbsp;14.46 | &nbsp;&nbsp;232.78 | &nbsp;&nbsp;2.48 |
| &nbsp;&nbsp;Inferred | &nbsp;&nbsp;>=12 | &nbsp;&nbsp;2088441 | &nbsp;&nbsp;26.94 | &nbsp;&nbsp;3.21 | &nbsp;&nbsp;1.04 | &nbsp;&nbsp;13.78 | &nbsp;&nbsp;205.34 | &nbsp;&nbsp;2.21 |
| &nbsp;&nbsp;Inferred | &nbsp;&nbsp;**>=10** | &nbsp;&nbsp;**2216948** | &nbsp;&nbsp;**26.02** | &nbsp;&nbsp;**3.19** | &nbsp;&nbsp;**1.06** | &nbsp;&nbsp;**13.28** | &nbsp;&nbsp;**198.99** | &nbsp;&nbsp;**2.12** |
| &nbsp;&nbsp;Inferred | &nbsp;&nbsp;>=8 | &nbsp;&nbsp;2285187 | &nbsp;&nbsp;25.51 | &nbsp;&nbsp;3.18 | &nbsp;&nbsp;1.07 | &nbsp;&nbsp;13.02 | &nbsp;&nbsp;195.34 | &nbsp;&nbsp;2.08 |
| &nbsp;&nbsp;Inferred | &nbsp;&nbsp;>=6 | &nbsp;&nbsp;2314702 | &nbsp;&nbsp;25.28 | &nbsp;&nbsp;3.17 | &nbsp;&nbsp;1.07 | &nbsp;&nbsp;12.90 | &nbsp;&nbsp;193.53 | &nbsp;&nbsp;2.05 |
| &nbsp;&nbsp;Inferred | &nbsp;&nbsp;>=4 | &nbsp;&nbsp;2350067 | &nbsp;&nbsp;24.98 | &nbsp;&nbsp;3.17 | &nbsp;&nbsp;1.07 | &nbsp;&nbsp;12.75 | &nbsp;&nbsp;191.26 | &nbsp;&nbsp;2.03 |
| &nbsp;&nbsp;Inferred | &nbsp;&nbsp;>=2 | &nbsp;&nbsp;2354062 | &nbsp;&nbsp;24.94 | &nbsp;&nbsp;3.17 | &nbsp;&nbsp;1.07 | &nbsp;&nbsp;12.73 | &nbsp;&nbsp;190.97 | &nbsp;&nbsp;2.03 |

---

Notes:

1) The current Resource Estimate was prepared by Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd.

2) All mineral resources have been estimated in accordance with CIM definitions, as required under NI43-101.

3) The Mineral Resource Estimate was prepared using a 10.0% zinc equivalent cut-off grade. Cut-off grades were derived from $25.20/oz silver, $1.38/lb zinc and $1.20/lb lead, and process recoveries of 92.1% for zinc, 77.2% for lead, and 90.8% for silver. This cut-off grade was based on current smelter agreements and total OPEX costs of $106.94/t based on 2022 actual costs plus capital costs of $42.33/t. All prices are stated in $USD.

4) An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

5) Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not account for a resource's mineability, selectivity, mining loss, or dilution. All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-44

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14.14 Mineral
 Resource Statement

Table 14-20 shows the Mineral Resource Statement for the Caballo Blanco deposit.

The Qualified Person evaluated the resource in order to ensure that it meets the condition of "reasonable prospects of eventual economic extraction" as suggested under NI 43-101. The criteria considered were confidence, continuity and economic cut-off. The resource listed below is considered to have "reasonable prospects of eventual economic extraction".

**Table 14-20: Base-Case Total Mineral Resources at 10.0% ZnEq Cut-off**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Total Caballo Blanco 2023 Mineral Resources** | &nbsp;&nbsp;**Total Caballo Blanco 2023 Mineral Resources** | &nbsp;&nbsp;**Total Caballo Blanco 2023 Mineral Resources** | &nbsp;&nbsp;**Total Caballo Blanco 2023 Mineral Resources** | &nbsp;&nbsp;**Total Caballo Blanco 2023 Mineral Resources** | &nbsp;&nbsp;**Total Caballo Blanco 2023 Mineral Resources** |
| &nbsp;&nbsp;**Mine** | &nbsp;&nbsp;**Category** | &nbsp;&nbsp;**Tonnes ('000)** | &nbsp;&nbsp;**Zn (%)** | &nbsp;&nbsp;**Pb (%)** | &nbsp;&nbsp;**Ag (g/t)** |
| &nbsp;&nbsp;**Caballo Blanco** | &nbsp;&nbsp;Measured | &nbsp;&nbsp;726 | &nbsp;&nbsp;15.96 | &nbsp;&nbsp;3.03 | &nbsp;&nbsp;321 |
| &nbsp;&nbsp;**Caballo Blanco** | &nbsp;&nbsp;Indicated | &nbsp;&nbsp;502 | &nbsp;&nbsp;14.32 | &nbsp;&nbsp;2.86 | &nbsp;&nbsp;269 |
| &nbsp;&nbsp;**Caballo Blanco** | &nbsp;&nbsp;**Total M+I** | &nbsp;&nbsp;**1227** | &nbsp;&nbsp;**15.29** | &nbsp;&nbsp;**2.96** | &nbsp;&nbsp;**300** |
| &nbsp;&nbsp;**Caballo Blanco** | &nbsp;&nbsp;**Inferred** | &nbsp;&nbsp;**2217** | &nbsp;&nbsp;**13.28** | &nbsp;&nbsp;**2.12** | &nbsp;&nbsp;**199** |

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Notes:

1) The current Resource Estimate was prepared by Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd.

2) All mineral resources have been estimated in accordance CIM definitions, as required under NI43-101.

3) The Mineral Resource Estimate was prepared using a 10.0% zinc equivalent cut-off grade. Cut-off grades were derived from $25.20/oz silver, $1.38/lb zinc and $1.20/lb lead, and process recoveries of 92.1% for zinc, 77.2% for lead, and 90.8% for silver. This cut-off grade was based on current smelter agreements and total OPEX costs of $106.94/t based on 2022 actual costs plus capital costs of $42.33/t. All prices are stated in $USD.

4) An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

5) Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not account for a resource's mineability, selectivity, mining loss, or dilution. All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

**Table 14-21: Base-Case Total Mineral Resources at 10.0% ZnEq Cut-off Split by Area**

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|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Caballo Blanco Mineral Resources (Jan 1, 2023)** | &nbsp;&nbsp;**Caballo Blanco Mineral Resources (Jan 1, 2023)** | &nbsp;&nbsp;**Caballo Blanco Mineral Resources (Jan 1, 2023)** | &nbsp;&nbsp;**Caballo Blanco Mineral Resources (Jan 1, 2023)** | &nbsp;&nbsp;**Caballo Blanco Mineral Resources (Jan 1, 2023)** | &nbsp;&nbsp;**Caballo Blanco Mineral Resources (Jan 1, 2023)** |
| &nbsp;&nbsp;**Mine** | &nbsp;&nbsp;**Category** | &nbsp;&nbsp;**Tonnes ('000)** | &nbsp;&nbsp;**Zn (%)** | &nbsp;&nbsp;**Pb (%)** | &nbsp;&nbsp;**Ag (g/t)** |
| &nbsp;&nbsp;**Colquechauita** | &nbsp;&nbsp;Measured | &nbsp;&nbsp;252 | &nbsp;&nbsp;15.04 | &nbsp;&nbsp;3.54 | &nbsp;&nbsp;259 |
| &nbsp;&nbsp;**Colquechauita** | &nbsp;&nbsp;Indicated | &nbsp;&nbsp;185 | &nbsp;&nbsp;13.71 | &nbsp;&nbsp;3.99 | &nbsp;&nbsp;284 |
| &nbsp;&nbsp;**Colquechauita** | &nbsp;&nbsp;**Total M+I** | &nbsp;&nbsp;**437** | &nbsp;&nbsp;**14.48** | &nbsp;&nbsp;**3.73** | &nbsp;&nbsp;**270** |
| &nbsp;&nbsp;**Colquechauita** | &nbsp;&nbsp;Inferred | &nbsp;&nbsp;**632** | &nbsp;&nbsp;**15.13** | &nbsp;&nbsp;**3.37** | &nbsp;&nbsp;**258** |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;Measured | &nbsp;&nbsp;342 | &nbsp;&nbsp;13.68 | &nbsp;&nbsp;1.84 | &nbsp;&nbsp;152 |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;Indicated | &nbsp;&nbsp;248 | &nbsp;&nbsp;12.84 | &nbsp;&nbsp;1.50 | &nbsp;&nbsp;127 |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**Total M+I** | &nbsp;&nbsp;**590** | &nbsp;&nbsp;**13.33** | &nbsp;&nbsp;**1.69** | &nbsp;&nbsp;**142** |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;Inferred | &nbsp;&nbsp;**1329** | &nbsp;&nbsp;**11.41** | &nbsp;&nbsp;**1.04** | &nbsp;&nbsp;**83** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;Measured | &nbsp;&nbsp;132 | &nbsp;&nbsp;23.59 | &nbsp;&nbsp;5.18 | &nbsp;&nbsp;874 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;Indicated | &nbsp;&nbsp;68 | &nbsp;&nbsp;21.38 | &nbsp;&nbsp;4.75 | &nbsp;&nbsp;747 |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**Total M+I** | &nbsp;&nbsp;**200** | &nbsp;&nbsp;**22.84** | &nbsp;&nbsp;**5.03** | &nbsp;&nbsp;**831** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;Inferred | &nbsp;&nbsp;**255** | &nbsp;&nbsp;**18.45** | &nbsp;&nbsp;**4.66** | &nbsp;&nbsp;**656** |
| &nbsp;&nbsp;**Total Caballo Blanco** | &nbsp;&nbsp;Measured | &nbsp;&nbsp;726 | &nbsp;&nbsp;15.96 | &nbsp;&nbsp;3.03 | &nbsp;&nbsp;321 |
| &nbsp;&nbsp;**Total Caballo Blanco** | &nbsp;&nbsp;Indicated | &nbsp;&nbsp;502 | &nbsp;&nbsp;14.32 | &nbsp;&nbsp;2.86 | &nbsp;&nbsp;269 |
| &nbsp;&nbsp;**Total Caballo Blanco** | &nbsp;&nbsp;**Total M+I** | &nbsp;&nbsp;**1227** | &nbsp;&nbsp;**15.29** | &nbsp;&nbsp;**2.96** | &nbsp;&nbsp;**300** |
| &nbsp;&nbsp;**Total Caballo Blanco** | &nbsp;&nbsp;Inferred | &nbsp;&nbsp;**2217** | &nbsp;&nbsp;**13.28** | &nbsp;&nbsp;**2.12** | &nbsp;&nbsp;**199** |

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Notes:

1) The current Resource Estimate was prepared by Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd.

2) All mineral resources have been estimated in accordance with CIM definitions, as required under NI43-101.

3) The Mineral Resource Estimate was prepared using a 10.0% zinc equivalent cut-off grade. Cut-off grades were derived from $25.20/oz silver, $1.38/lb zinc and $1.20/lb lead, and process recoveries of 92.1% for zinc, 77.2% for lead, and 90.8% for silver. This cut-off grade was based on current smelter agreements and total OPEX costs of $106.94/t based on 2022 actual costs plus capital costs of $42.33/t. All prices are stated in $USD.

4) An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

5) Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not account for a resource's mineability, selectivity, mining loss, or dilution. All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

14.15 Discussion
 with Respect to Potential Material Risks to the Resources

The current political and socio-economic climate in Bolivia poses risks and uncertainties that could delay or even stop development as reported within the Fraser Institute Annual Report 2022 where Bolivia ranks very low in many non-technical metrics. Bolivia has been ranked consistently low for the past five years and ranks in the lower quartile on all metrics that gauge risk and uncertainty. It is difficult to gauge or qualify the level or extents of the risks however, all companies working in Bolivia must continue to be aware of the potential risks and develop mitigation strategies. A significant risk related to the Santacruz Bolivian mineral assets and in particular the mineral resources and mineral reserves is the significant artisanal activity that continues to exist. This activity is not only a socio-economic risk but also affects access to resources and reserves along with potentially resulting in potential sterilization of mineral resources.

Apart from political and socio-economic risks there are no other known environmental, permitting, legal, taxation, title or other relevant factors that materially affect the resources apart from commodity price fluctuations particularly on the downside.

The Caballo Blanco Project consists of very many high-grade thin veins. These types of deposits are very sensitive to grade as the size and geometry must be economically viable as they must support selective mining methods and be able to withstand high levels of dilutive material.

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 14-45

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15 Mineral Reserve Estimate

15.1 Summary

The January 1, 2023 reserve estimate represents the validation of Santacruz's internally-generated mineral reserve estimate by QP Goodwin. All work on the reserve by the Santacruz mine design team and the validation exercises were done in Deswik<sup>TM</sup>. The following process was used for this work:

● An NSR calculation and cut-off grade (COG) was developed by the QP using data provided by Santacruz ;

● The reserve estimation methodology was reviewed, checked, and approved by the QP;

● Mine technical staff prepared a Life of Mine Plan (LOM) for the deposits using the NSR and COG provided by the QP. The LOM plan was prepared specifically for this reserve estimation, as the annual budget includes mining in inferred resources; and

● All LOM models were downloaded and reviewed by the QP for conformance to the methodology, proper application of the NSR COG, and correct application of agreed upon dilution and recovery factors.

The QP is satisfied that this exercise resulted in a valid reserve determination.

 

15.2 Definitions

A Mineral Reserve is the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at Pre-Feasibility or Feasibility level as appropriate that include application of Modifying Factors. This Feasibility Study includes adequate information and considerations on mining, processing, metallurgical, infrastructure, economic, marketing, environmental and other relevant factors that demonstrate, at the time of reporting, that economic extraction could reasonably be justified.

 

Mineral Reserves are those parts of Mineral Resources which, after the application of all mining factors, result in an estimated tonnage, and grade which, in the opinion of the Qualified Person(s) making the estimates, is the basis of an economically viable project after taking account of all relevant Modifying Factors. Mineral Reserves are inclusive of diluting material that will be mined in conjunction with the Mineral Reserves and delivered to the treatment plant or equivalent facility. The term "Mineral Reserve" need not necessarily signify that extraction facilities are in place or operative or that all governmental approvals have been received. It does signify that there are reasonable expectations of such approvals.

 

Mineral Reserves are subdivided in order of increasing confidence into Probable Mineral Reserves and Proven Mineral Reserves. A Probable Mineral Reserve has a lower level of confidence than a Proven Mineral Reserve.

 

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The reserve classifications used in this report conform to the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) classification of NI 43-101 resource and reserve definitions and Companion Policy 43-101CP. These are listed below.

 

A "Proven Mineral Reserve" is the economically mineable part of a Measured Mineral Resource. A Proven Mineral Reserve implies a high degree of confidence in the Modifying Factors.

 

Application of the Proven Mineral Reserve category implies that the Qualified Person has the highest degree of confidence in the estimate with the consequent expectation in the minds of the readers of the report. The term should be restricted to that part of the deposit where production planning is taking place and for which any variation in the estimate would not significantly affect potential economic viability of the deposit. Proven Mineral Reserve estimates must be demonstrated to be economic, at the time of reporting, by at least a Pre-Feasibility Study. Within the CIM Definition standards the term Proved Mineral Reserve is an equivalent term to a Proven Mineral Reserve.

 

A "Probable Mineral Reserve" is the economically mineable part of an Indicated Mineral Resource, and in some circumstances a Measured Mineral Resource. The confidence in the Modifying Factors applying to a Probable Mineral Reserve is lower than that applying to a Proven Mineral Reserve.

 

15.3 NSR
 and COG Determinations

15.3.1 Operating
 Costs

Operating costs for the reserve estimation were based on actual costs derived from 2022 operations, as summarized in Table 15-1.

**Table 15-1: Actual Operating Costs for 2022 by Category**

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| &nbsp;&nbsp;**Category** | &nbsp;&nbsp;**$/t** |
| &nbsp;&nbsp;Mining | &nbsp;&nbsp;75.66 |
| &nbsp;&nbsp;Processing | &nbsp;&nbsp;17.10 |
| &nbsp;&nbsp;G&A | &nbsp;&nbsp;14.17 |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**106.94** |

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15.3.2 Metal
 Prices

The metal prices used to determine the 2023 Mining Reserve are as follows:

● Lead $1.00 /lb;

● Zinc $1.15 /lb; and

● Silver $21.00 /oz.

The derivation and rationale for these price selections is discussed in discussed in Section 19.

15.3.3 Metallurgical
 Recoveries

The metallurgical recoveries of payable metals were based on 2022 mill operating performance as follows:

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|:---|:---|
| Lead: | 77.2% to the lead concentrate |

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|:---|:---|
| Zinc: | 92.1% to the zinc concentrate |

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|:---|:---|
| Silver: | A total of 90.8% recovery; 71.8% to the lead concentrate and 19.0% to the zinc concentrate. |

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15.3.4 Smelter
 Terms

There are two concentrates that are sent to Antofagasta in Chile for shipment overseas. Both concentrates are sold to Glencore. Smelter terms were based on actual invoicing. These include typical payment terms for all payable metals (Pb, Zn, Ag) and deductions for deleterious elements (Sb and Bi in the zinc concentrate and SiO<sub>2</sub> in the lead concentrate. Off-site costs for freight, port fees, sampling, and silver refining are included in the analysis at the actual rates.

15.4 Net
 Smelter Return and Cut-off Criteria

The combination of all factors discussed in this section results in the following NSR formula for the 2023 Mining Reserve:

*NSR = $9.01 x Zn% + 10.95 x Pb% + 0.46 x Ag (g/t)*

 

Cut-off criteria was developed based on a ZnEq formula as follows:

*ZnEq = Zn% + 1.22 x Pb% + 0.051 x Ag (g/t)*

 

A cut-off grade of 11.9% ZnEq was applied to the reserve estimation based on this equation.

15.5 Estimation
 Methodology

The reserves were estimated in Deswik. The NSR formula and ZnEq were applied to the block model. Stope optimization was then performed to the resource to generate stope shapes for evaluation.

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Table 15-2 shows the stope optimization parameters that were used for the three mines of Cabello Blanco, segregated by mine and stoping method.

**Table 15-2: Stope Optimization Parameters by Mine and Stoping Method**

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Mine** | &nbsp;&nbsp;**Method** | &nbsp;&nbsp;**Vein** | &nbsp;&nbsp;**Min Stope Width (m)** | &nbsp;&nbsp;**Minimum <br> Stope dip** | &nbsp;&nbsp;**Min. Waste Pillar Width (m)** | &nbsp;&nbsp;**Max. <br> Stope Width (m)** | &nbsp;&nbsp;**Min. Stope Height (m)** | &nbsp;&nbsp;**Max Stope Height (m)** |
| &nbsp;&nbsp;Reserva | &nbsp;&nbsp;SLOS | &nbsp;&nbsp;1000 | &nbsp;&nbsp;1.50 | &nbsp;&nbsp;40 | &nbsp;&nbsp;5 | &nbsp;&nbsp;10 | &nbsp;&nbsp;8 | &nbsp;&nbsp;10 |
| &nbsp;&nbsp;Reserva | &nbsp;&nbsp;SLOS | &nbsp;&nbsp;1000 | &nbsp;&nbsp;2.30 | &nbsp;&nbsp;40 | &nbsp;&nbsp;5 | &nbsp;&nbsp;10 | &nbsp;&nbsp;8 | &nbsp;&nbsp;10 |
| &nbsp;&nbsp;Reserva | &nbsp;&nbsp;Shrinkage | &nbsp;&nbsp;1001 | &nbsp;&nbsp;0.85 | &nbsp;&nbsp;40 | &nbsp;&nbsp;3 | &nbsp;&nbsp;10 | &nbsp;&nbsp;10 | &nbsp;&nbsp;18 |
| &nbsp;&nbsp;Reserva | &nbsp;&nbsp;Shrinkage | &nbsp;&nbsp;1002 | &nbsp;&nbsp;0.80 | &nbsp;&nbsp;40 | &nbsp;&nbsp;3 | &nbsp;&nbsp;10 | &nbsp;&nbsp;10 | &nbsp;&nbsp;18 |
| &nbsp;&nbsp;Tres Amigos | &nbsp;&nbsp;Shrinkage | &nbsp;&nbsp;All | &nbsp;&nbsp;1.00 | &nbsp;&nbsp;40 | &nbsp;&nbsp;3 | &nbsp;&nbsp;10 | &nbsp;&nbsp;18 | &nbsp;&nbsp;24 |
| &nbsp;&nbsp;Colquechaquita | &nbsp;&nbsp;SLOS | &nbsp;&nbsp;All | &nbsp;&nbsp;1.50 | &nbsp;&nbsp;30 | &nbsp;&nbsp;5 | &nbsp;&nbsp;10 | &nbsp;&nbsp;10 | &nbsp;&nbsp;15 |
| &nbsp;&nbsp;Colquechaquita | &nbsp;&nbsp;Shrinkage | &nbsp;&nbsp;All | &nbsp;&nbsp;1.50 | &nbsp;&nbsp;50 | &nbsp;&nbsp;5 | &nbsp;&nbsp;10 | &nbsp;&nbsp;40 | &nbsp;&nbsp;45 |

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Dilution and recovery factors were varied by stoping method as follows:

● Development: 95% recovery without dilution applied;

● Sublevel Open Stoping mining method: 85% recovery and 12.5% dilution; and

● Shrinkage Stoping: 80% recovery and 10% dilution.

Once generated, solids below the COG of 11.9% ZnEq were then eliminated as well as any inferred resources.

A development layout was then prepared for each stope to determine access requirements. A development and production schedule were then prepared in Deswik.

15.6 Mineral
 Reserve Estimate

The Mineral Reserve Estimate for Caballo Blanco Mine is shown in Table 15-3.

**Table 15-3: Mineral Reserve Estimate for Caballo Blanco (January 1, 2023)**

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|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Mine** | &nbsp;&nbsp;**Category** | &nbsp;&nbsp;**Tonnes** | &nbsp;&nbsp;**Zn (%)** | &nbsp;&nbsp;**Pb (%)** | &nbsp;&nbsp;**Ag (g/t)** |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;Proven | &nbsp;&nbsp;207000 | &nbsp;&nbsp;10.49 | &nbsp;&nbsp;2.16 | &nbsp;&nbsp;174 |
|  | &nbsp;&nbsp;Probable | &nbsp;&nbsp;212000 | &nbsp;&nbsp;8.68 | &nbsp;&nbsp;2.77 | &nbsp;&nbsp;187 |
|  | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**420000** | &nbsp;&nbsp;**9.57** | &nbsp;&nbsp;**2.47** | &nbsp;&nbsp;**181** |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;Proven | &nbsp;&nbsp;168000 | &nbsp;&nbsp;9.21 | &nbsp;&nbsp;1.34 | &nbsp;&nbsp;110 |
|  | &nbsp;&nbsp;Probable | &nbsp;&nbsp;177000 | &nbsp;&nbsp;8.74 | &nbsp;&nbsp;1.08 | &nbsp;&nbsp;93 |
|  | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**345000** | &nbsp;&nbsp;**8.97** | &nbsp;&nbsp;**1.21** | &nbsp;&nbsp;**101** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;Proven | &nbsp;&nbsp;194000 | &nbsp;&nbsp;9.88 | &nbsp;&nbsp;1.95 | &nbsp;&nbsp;355 |
|  | &nbsp;&nbsp;Probable | &nbsp;&nbsp;75000 | &nbsp;&nbsp;6.16 | &nbsp;&nbsp;1.73 | &nbsp;&nbsp;272 |
|  | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**269000** | &nbsp;&nbsp;**8.84** | &nbsp;&nbsp;**1.89** | &nbsp;&nbsp;**332** |
| &nbsp;&nbsp;**Total Caballo Blanco** | &nbsp;&nbsp;Proven | &nbsp;&nbsp;569000 | &nbsp;&nbsp;9.90 | &nbsp;&nbsp;1.85 | &nbsp;&nbsp;217 |
|  | &nbsp;&nbsp;Probable | &nbsp;&nbsp;465000 | &nbsp;&nbsp;8.30 | &nbsp;&nbsp;1.96 | &nbsp;&nbsp;165 |
|  | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**1034000** | &nbsp;&nbsp;**9.18** | &nbsp;&nbsp;**1.90** | &nbsp;&nbsp;**193** |

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These reserves could be impacted by changes to mine operating costs, metallurgical recoveries, changes to permitting status, and the availability of tailings storage. No significant variations from current assumptions for these aspects are currently anticipated.

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16 Mining Methods

16.1 Overview

The Caballo Blanco Mine has been in operation for 20 years. Although the mine is managed as a single business, it is actually composed of three different mines on the same mineralized trend: Reserva, Tres Amigos and Colquechaquita.

Although development to connect the mines is in process, there still exists some autonomy in how each are operated. The application of mining methods has thus been an adaptation of mining equipment technologies, evaluation and monitoring tools to the specific mineralized zones. The last decade of operations under the guidance of Glencore, the mine has seen a move to more mechanized methods to improve safety performance and mine productivity.

Variation in the characteristics of each mineralized zone coupled with the historic infrastructure present to support their development and exploitation has resulted in different mining systems for each property. While steeply dipping and relatively wide mineralized zones were intuitively adaptable to mechanization, narrow high-grade veins are amenable to quite profitable conventional selective mining techniques. In addition to historical and empirical knowledge about the deposit, a systematic evaluation included such other deposit qualities to determine workable mining methods:

● Safety aspects, Environmental risks, Social impacts;

● Shape, geometry, consistency, and volume;

● Both mineralization and wall rock quality (strength, Fracture characterizations, in-situ strength, regional stress);

● Stability, and Support requirements;

● Grades, NSR Value, potential extraction rate;

● Mechanization/automation, use of gravity, flexibility and adaptability; and

● Unit costs, time to production, dilution, development requirements.

Based on continuously evaluated performance of the selected mining systems, improvements are always being considered based on the aforementioned criteria and economic performance.

As a unit, Caballo Blanco produces about 850 t/d of mineralized material. Approximately 60% of mine production is generated by conventional shrinkage and cut & fill methods. The remainder is produced by more modern trackless sublevel stoping. Run-of-mine mineralized material is hauled to the Don Diego Process plant in highway dump trucks.

Although each mine is currently an autonomous operation, all three mines are exploiting the same mineralized trend and there is no reason to believe that as mining continues additional opportunities to plan common development, infrastructure and other shared services will arise. One example would be current plans for a trackless connection between Tres Amigos and Colquechaquita which would increase haulage capacity at Colquechaquita and provide trackless access to additional mineralized zones.

**Figure 16-1: Mine Locations on the Mineralized Trend**

![A map of a mountain Description automatically generated](ex99-28_113.jpg)

Source: Glencore (2021)

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 16-1

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**Figure 16-2: Caballo Blanco Reserve and Mineable Targets**

![](ex99-28_114.jpg)

Source: Santacruz (2023)

The mine currently operates at a production rate of approximately 820 t/d with a current LOM of four years based on the current reserve.

16.2 Geotech
 Considerations

Rock mass ratings are an integral part of the evaluation process and play a large part in the selection of safe and productive mining systems.

● Reserva mine has relatively weak wall rocks which preclude the use of selective methods that could put miners at risk of rock falls, so mechanized techniques are being used with particular attention being devoted to the potential dilution;

● Colquechaquita utilizes conventional and mechanized techniques partially on Geotechnical and geometrical characteristics. Narrow steeply dipping high grade areas with strong wall rocks are being mined conventionally, while the wider, more consistent bodies are amenable long hole stoping; and

● Tres Amigos has the advantage of many parallel and intersecting high grade narrow vein structures in strong ground with proximity to the surface by Ramp Access. Thus, selective conventional mining coupled with more efficient access and haulage create a hybrid system that is quite effective.

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16.3 Mine
 Layout and Mining Method

The three mining operations follow steeply dipping veins striking predominantly North/South. Veins vary in width from 0.2 to 2.5 m, the wider and more consistent veins being mined using more productive longhole methods.

16.3.1 Reserva
 Mine

Reserva mine is the youngest and most modern of the three mines. Mine production is about 275 t/d. All mining is done with sublevel longhole methods and trackless development. In principle, the AVOCA method being used has all the productivity advantages of longhole stoping and allows for concurrent backfill to continuously support the relatively weak hanging wall. Backfill for stoping is generated from development mining.

The primary access drift is at Level 0, from where two internal ramps are driven; South and North which currently access down to the -95 m level. Mineral extraction from each level is via these main ramps directly to surface using rubber tired mechanized equipment. Waste rock is preferentially stored underground or used directly as stope backfill.

Reserva mine has its own support services including electrical and mechanical shop for both surface and underground, drill shop for both conventional air tools and electric/hydraulic jumbos, and a diesel shop to service the trackless fleet.

Figure 16-3 shows a general layout of developed areas currently being mined and planned development in the North and downdip to the south.

The Reserva Mine maintains its own mechanical and electrical shops to service the mine.

**Figure 16-3: Long Section Reserva Mine**

![Timeline Description automatically generated with low confidence](ex99-28_115.jpg)

Source: Santacruz (2022)

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**Figure 16-4: Avoca Mining at Reserva Mine**

![A diagram of a building Description automatically generated](ex99-28_116.jpg)

Source: Glencore (2021)

16.3.2 Colquechaquita
 Mine

Colquechaquita mine has been in production since 1991 using tracked development, and stoping by conventional shrinkage and cut and fill methods. The mine produces about 230 t of mineralized material per day. The transition to mechanized mining is in process but still in the early stages. Approximately 50% production continues to be generated from conventional methods. The southern portion of the mine is moving to trackless development. However, equipment brought into the mine must be disassembled and moved in the shaft which is time consuming and labor intensive.

The main access to the mine is via Level 0, and current mining activity extends down to the -240 m level. Old workings are maintained were advantageous for dewatering and as ventilation ways.

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The Colquechaquita Mine maintains its own mechanical and electrical shops to service the mine.

**Figure 16-5: Long Section Colquechaquita Mine**

![A picture containing diagram Description automatically generated](ex99-28_117.jpg)

Source: Santacruz (2023)

16.3.3 Tres
 Amigos Mine

Tres Amigos remains a conventional tracked mine using mostly a modified shrinkage stoping method, as shown in Figure 16-6. The mineralized zones are narrow and high-grade making them well suited to these more selective stoping methods. However, higher productivity trackless mechanized methods are used for primary development and ramps. Stoping takes place generally above the -200 level and mineralized material production averages approximately 300 t/d. Mineralized material is hauled by rail either to the main Catalina shaft for hoisting to surface or hauled directly to surface using trucks.

The production from Tres Amigos is consistent. The impression was that the workforce is skilled, well trained, and well supported by capable technical support and planning.

Figure 16-7 is a general layout of developed areas currently being mined and planned development downdip.

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**Figure 16-6: Shrinkage Mining as Practiced at Tres Amigos**

![A diagram of a building Description automatically generated](ex99-28_118.jpg)

Source: Glencore (2021)

**Figure 16-7: Isometric of the Tres Amigos Mine**

![Diagram Description automatically generated](ex99-28_119.jpg)

Source: Santacruz (2023)

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16.4 Development

Mine Access is trackless at Reserva and Tres Amigos mines via ramps which access the deepest levels of each mining area from the surface. Colquechaquita mine is shaft entry which limits production and productivity. This condition prompted the capital project now it progresses to link Tres Amigos with Colquechaquita via an integration ramp which will allow trackless development and Mineralized material haulage from Colquechaquita and allow for decommissioning of the existing shaft.

The methods for driving development openings have evolved over the past decade or so in response to a period of high accident frequency rates where it was determined that the main cause of severe injuries was related to rock falls. A systematic and progressive program was established to implement controls and methods to mitigate exposure to this danger.

Until 2014, support was only carried out with timber in the worst sectors according to informal evaluations of the rock conditions. Subsequently, the specific installation of support bolts (Split set or Hydrabolt) was implemented in the back of the drifts according to the evaluation of the rock mass. Currently the primary developments (ramps, counter galleries, cutouts, entrances, etc.) have support in the back and ribs with steel mesh and hydrabolts.

The galleries of the secondary developments (levels, sublevels, etc.) are supported in the back and ribs with electro-welded mesh and Split Set bolts.

Figure 16-8 shows the evolution of the ground support system as the mine responded to the requirements of the rock mass.

**Figure 16-8: Evolution of the Rock Mass Support System**

![A screenshot of a computer Description automatically generated](ex99-28_120.jpg)

Source: Glencore (2021)

In 2017, the installation of bolts (Split set or Hydrabolt) and electro-welded mesh on the back of the drift was standardized with a tolerance margin of 10 to 15 m without support on the advance front according to the quality assessment of the rock mass.

Currently, the support standard consists of the installation of bolts and electro-welded mesh on the roof and sides of the gallery (up to the gradient) to the advance front using electro-hydraulic equipment applying the two "golden rules":

● Meter advanced equals meter supported; and

● Drilled hole, bolt installed.

The use of Jacklegs for horizontal development is minimized. Currently, the only "conventional" development being done is short raises which are driven with jacklegs and timber at all the mines, and conventional rail drifting at the Colquechaquita and Tres Amigos mine which uses jackleg drills and pneumatic overshot rail muckers.

16.5 Mine
 Services

16.5.1 Haulage

Reserva mine is completely trackless and mechanized so all rock is moved with scooptrams and trucks. There exist two mining haulage circuits; the upper area, which is above level 152, hauls their Mineralized material via truck directly to the Cabaceras Portal at level 200. Mineralized material from all other areas is moved to level -40 by truck or rockpass for haulage out the primary access drift at Level 0.

Waste rock is preferentially stored underground or used directly as stope backfill.

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**Figure 16-9: Ore Haulage System Diagram – Reserva Mine**

![](ex99-28_121.jpg)

Source: Santacruz (2023)

Colquechaquita supports two separate mining areas. Currently, all rock is moved via rail to the shaft where it is hoisted to the main haulage level (Level 0) and then hoisted to surface. Some trackless equipment is being use in the AVOCA area of the mine where rock is mucked from the stopes with diesel LHD and then loaded into railcars for haulage to the shaft.

About half of the mineralized material comes from conventional shrinkage mining which is serviced by rail haulage and winze hoisting. However, some smaller trackless equipment was brought into the mine during the past couple of years to begin a mechanized section. Mineralized material coming from this area is mucked with Scooptram and truck to a central loading level where it is transferred to rail cars and hauled to the winze for hoisting. The completion of the Integration Ramp will connect Colquechaquita to Tres Amigos and provide trackless access to surface for rock haulage as well as men and material movement.

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**Figure 16-10: Ore Haulage System Diagram – Colquechaquita Mine**

![A diagram of a diagram Description automatically generated with medium confidence](ex99-28_122.jpg)

Source: Santacruz 2023

Tres Amigos utilizes a hybrid system of mining where the primary development is driven with large scale trackless equipment allowing efficient haulage. However, the stoping is done in a very selective way to match the narrow vein geometry of the mineralized material. Conventional stoping methods still utilize track haulage and chutes for stope cleaning, however, the material is collected for transfer to trucks for haulage to surface.

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**Figure 16-11: Extraction System Diagram – Tres Amigos Mine**

![](ex99-28_123.jpg)

Source: Santacruz 2023

16.5.2 Electrical

Electrical supply is remarkable at Caballo Blanco, in that part of the power is self-generated. Santacruz Silver owns two power generation plants; One hydro power and the other with Gas fired gensets. Currently, Colquechaquita and Tres Amigos are powered mostly by these Generating stations, although all three mines are connected to the national grid (SEPSA).

**Table 16-1: Electric Requirements**

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| &nbsp;&nbsp;**Operation** | &nbsp;&nbsp;**Connected Load (MVA)** | &nbsp;&nbsp;**Average Consumption (MVA)** |
| &nbsp;&nbsp;Colquechaquita | &nbsp;&nbsp;3.339 | &nbsp;&nbsp;1.982 |
| &nbsp;&nbsp;Tres Amigos | &nbsp;&nbsp;2.054 | &nbsp;&nbsp;0.661 |
| &nbsp;&nbsp;Reserva | &nbsp;&nbsp;2.054 | &nbsp;&nbsp;1.203 |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**7.447** | &nbsp;&nbsp;**3.846** |

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Source: Santacruz (2023)

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YOCALLA Hydroelectric plant, consists of two hydroelectric generators with a capacity of 750 KVA each, one of the generators is currently inoperative.

AROIFILIA Thermo-electric, consists of 8 thermo-electric generators with capacities of 230 KW each. However, only 3 units are in operating condition, with 2 currently under repair and the other 3 units out of service. Natural gas is supplied by the national gas company (YPFB)

The generated power is incorporated into the national grid, distributed by SEPSA, controlled by SEGIMBOL contractor personnel. Although the mines need to supplement the power supply by with the grid, the savings is substantial. Generated power cost is US .043 /kWH vs. US .071 /kWH for grid power.

**Figure 16-12: Single Line Diagram of Electrical Distribution System**

![A diagram of electrical wiring Description automatically generated](ex99-28_124.jpg)

Source: Santacruz 2023

Each mine has its own dedicated 24.9 KV main feeder and transformers. Reserva mine distributes power into the mine at 6600 and 440 KV, Colquechaquita and Tres Amigos step down to 4160 and 440 KV for mine distribution.

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16.5.3 Ventilation

Each of the mines is ventilated separately and based on the mining system and equipment utilized, each has very different needs. Ventilation uses a combination of natural pressure through the old drifts and airways, and exhaust fans in a series of drifts and raises. All systems utilize mechanical ventilation on the exhaust side to augment natural flows.

Ventilation at Colquechaquita (shown in Figure 16-13) uses a combination of natural pressure through the old drifts and airways, and exhaust fans in a series of drifts and raises. Colquechaquita is mostly conventional and has the lowest fresh air requirements at 24 kcfm.

Reserva mine (shown in Figure 16-14) has the highest needs based on the use of exclusively diesel equipment for operations, requiring 60 kcfm.

Tres Amigos (shown in Figure 16-15) is a hybrid system using diesel equipment for development only, requiring 48 kcfm. At Tres Amigos, fresh air enters through the main access of Level 0 and the north ventilation raise with a flow rate of 18,700 m<sup>3</sup>/h, as shown in Figure 16-15 Used air is exhausted via three ventilation raises to surface.

Connection of the Colquechaquita and Tres Amigos mines the Integration ramp will provide a more flexible ventilation system for the combined operations.

**Figure 16-13: Ventilation Scheme – Colquechaquita Mine**

![A diagram of a diagram Description automatically generated](ex99-28_125.jpg)

Source: Santacruz 2023

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**Figure 16-14: Ventilation Scheme – Reserva Mine**

![A diagram of a diagram Description automatically generated](ex99-28_126.jpg)

Source: Santacruz 2023

**Figure 16-15: Ventilation Scheme – Tres Amigos Mine**

![A diagram of a train Description automatically generated](ex99-28_127.jpg)

Source: Santacruz 2023

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16.5.4 Mine
 Dewatering

Water issues do not have a significant impact issue at Caballo Blanco, however, since there is no process plant at site, there is an excess of water, and treatment of mine water is required prior to discharge, consisting of clarification and pH adjustment. Colquechaquita discharges approximately 40 l/s, Reserva 33 l/s, and Tres Amigos <5 l/s.

Dewatering at Colquechaquita is accomplished with a series of pumping stations at the main shaft on nominal 40 m intervals. Water is pumped up to Level 0 where it is conveyed to the water treatment plant via gravity in a ditch.

The dewatering schemes of the three mines are shown in Figure 16-16 through Figure 16-18.

**Figure 16-16: Dewatering System – Colquechaquita Mine**

![A diagram of a train Description automatically generated](ex99-28_128.jpg)

Source: Santacruz 2023

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**Figure 16-17: Dewatering System Scheme – Reserva Mine**

![A diagram of a road Description automatically generated with medium confidence](ex99-28_129.jpg)

Source: Santacruz 2023

**Figure 16-18: Dewatering System Scheme – Tres Amigos Mine**

![A diagram of a building Description automatically generated](ex99-28_130.jpg)

Source: Santacruz 2023

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16.6 Mine
 Equipment

The list of mining equipment allocated of the three mines is shown in Table 16-2. The equipment codes are the unit names. Availability and utilization factors from 2022 are shown for each unit.

**Table 16-2: Mine Equipment Inventory**

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| &nbsp;&nbsp;**Item** | &nbsp;&nbsp;**Category** | &nbsp;&nbsp;**Mine/Zone** | &nbsp;&nbsp;**Equipment Code** | &nbsp;&nbsp;**Model** | &nbsp;&nbsp;**Brand** | &nbsp;&nbsp;**Capacity /<br> Range** | &nbsp;&nbsp;**HP** | &nbsp;&nbsp;**Availability (%)** | &nbsp;&nbsp;**Utilization (%)** |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Jumbo Drills | &nbsp;&nbsp;Reserva | &nbsp;&nbsp;Peh-03 | &nbsp;&nbsp;Muki Ff | &nbsp;&nbsp;Resemin | &nbsp;&nbsp;2.4 m | &nbsp;&nbsp;75 | &nbsp;&nbsp;77% | &nbsp;&nbsp;18% |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Jumbo Drills | &nbsp;&nbsp;Reserva | &nbsp;&nbsp;Peh-06 | &nbsp;&nbsp;Muki Ff | &nbsp;&nbsp;Resemin | &nbsp;&nbsp;2.4 m | &nbsp;&nbsp;75 | &nbsp;&nbsp;76% | &nbsp;&nbsp;18% |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Jumbo Drills | &nbsp;&nbsp;Reserva | &nbsp;&nbsp;Peh-08 | &nbsp;&nbsp;Muki Ff | &nbsp;&nbsp;Resemin | &nbsp;&nbsp;2.4 m | &nbsp;&nbsp;75 | &nbsp;&nbsp;73% | &nbsp;&nbsp;19% |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Jumbo Drills | &nbsp;&nbsp;Colquechaquita | &nbsp;&nbsp;Peh-05 | &nbsp;&nbsp;Muki Ff | &nbsp;&nbsp;Resemin | &nbsp;&nbsp;2.4 m | &nbsp;&nbsp;75 | &nbsp;&nbsp;92% | &nbsp;&nbsp;21% |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;Jumbo Drills | &nbsp;&nbsp;Colquechaquita | &nbsp;&nbsp;Peh-09 | &nbsp;&nbsp;Muki Ff | &nbsp;&nbsp;Resemin | &nbsp;&nbsp;2.4 m | &nbsp;&nbsp;75 | &nbsp;&nbsp;35% | &nbsp;&nbsp;10% |
| &nbsp;&nbsp;6 | &nbsp;&nbsp;Jumbo Drills | &nbsp;&nbsp;Tres Amigos | &nbsp;&nbsp;Jb-01 | &nbsp;&nbsp;Boomer H104 | &nbsp;&nbsp;Atlas Copco | &nbsp;&nbsp;3.7 m | &nbsp;&nbsp;74 | &nbsp;&nbsp;33% | &nbsp;&nbsp;7% |
| &nbsp;&nbsp;7 | &nbsp;&nbsp;Jumbo Drills | &nbsp;&nbsp;Tres Amigos | &nbsp;&nbsp;Jb-02 | &nbsp;&nbsp;Boomer S1d | &nbsp;&nbsp;Atlas Copco | &nbsp;&nbsp;4 m | &nbsp;&nbsp;78 | &nbsp;&nbsp;80% | &nbsp;&nbsp;22% |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Longhole Drills | &nbsp;&nbsp;Reserva | &nbsp;&nbsp;Peh-02 | &nbsp;&nbsp;Raptor 44 | &nbsp;&nbsp;Resemin | &nbsp;&nbsp;20 m | &nbsp;&nbsp;100 | &nbsp;&nbsp;92% | &nbsp;&nbsp;6% |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Longhole Drills | &nbsp;&nbsp;Reserva | &nbsp;&nbsp;Peh-10 | &nbsp;&nbsp;Raptor 44 XP | &nbsp;&nbsp;Resemin | &nbsp;&nbsp;20 m | &nbsp;&nbsp;100 | &nbsp;&nbsp;42% | &nbsp;&nbsp;3% |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Longhole Drills | &nbsp;&nbsp;Colquechaquita | &nbsp;&nbsp;Peh-04 | &nbsp;&nbsp;Muki 22 | &nbsp;&nbsp;Resemin | &nbsp;&nbsp;15 m | &nbsp;&nbsp;75 | &nbsp;&nbsp;73% | &nbsp;&nbsp;16% |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Rockbolters | &nbsp;&nbsp;Tres Amigos | &nbsp;&nbsp;Je-01 | &nbsp;&nbsp;Small Bolter 77 | &nbsp;&nbsp;Resemin | &nbsp;&nbsp;3 m | &nbsp;&nbsp;75 | &nbsp;&nbsp;31% | &nbsp;&nbsp;5% |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Rockbolters | &nbsp;&nbsp;Tres Amigos | &nbsp;&nbsp;Je-02 | &nbsp;&nbsp;Small Bolter 77 | &nbsp;&nbsp;Resemin | &nbsp;&nbsp;3 m | &nbsp;&nbsp;75 | &nbsp;&nbsp;80% | &nbsp;&nbsp;28% |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Scooptrams | &nbsp;&nbsp;Reserva | &nbsp;&nbsp;St-02 | &nbsp;&nbsp;Scooptram Lh203 | &nbsp;&nbsp;Sandvik | &nbsp;&nbsp;1.5 m<sup>3</sup> | &nbsp;&nbsp;95 | &nbsp;&nbsp;68% | &nbsp;&nbsp;51% |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Scooptrams | &nbsp;&nbsp;Reserva | &nbsp;&nbsp;St-03 | &nbsp;&nbsp;Scooptram Lh203 | &nbsp;&nbsp;Sandvik | &nbsp;&nbsp;1.5 m<sup>3</sup> | &nbsp;&nbsp;95 | &nbsp;&nbsp;57% | &nbsp;&nbsp;43% |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Scooptrams | &nbsp;&nbsp;Reserva | &nbsp;&nbsp;St-04 | &nbsp;&nbsp;Scooptram Toro 151d | &nbsp;&nbsp;Tamrock | &nbsp;&nbsp;1.5 m<sup>3</sup> | &nbsp;&nbsp;95 | &nbsp;&nbsp;68% | &nbsp;&nbsp;28% |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Scooptrams | &nbsp;&nbsp;Reserva | &nbsp;&nbsp;St-08 | &nbsp;&nbsp;Scooptram Lh203 | &nbsp;&nbsp;Sandvik | &nbsp;&nbsp;1.5 m<sup>3</sup> | &nbsp;&nbsp;95 | &nbsp;&nbsp;51% | &nbsp;&nbsp;37% |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;Scooptrams | &nbsp;&nbsp;Reserva | &nbsp;&nbsp;St-16 | &nbsp;&nbsp;Scooptram Lh203 | &nbsp;&nbsp;Sandvik | &nbsp;&nbsp;1.5 m<sup>3</sup> | &nbsp;&nbsp;95 | &nbsp;&nbsp;78% | &nbsp;&nbsp;63% |
| &nbsp;&nbsp;6 | &nbsp;&nbsp;Scooptrams | &nbsp;&nbsp;Tres Amigos | &nbsp;&nbsp;St-14 | &nbsp;&nbsp;Microscoop 100d | &nbsp;&nbsp;Sandvik | &nbsp;&nbsp;0.54 m<sup>3</sup> | &nbsp;&nbsp;45 | &nbsp;&nbsp;90% | &nbsp;&nbsp;29% |
| &nbsp;&nbsp;7 | &nbsp;&nbsp;Scooptrams | &nbsp;&nbsp;Tres Amigos | &nbsp;&nbsp;St-15 | &nbsp;&nbsp;Microscoop Xlh05d | &nbsp;&nbsp;Overprime | &nbsp;&nbsp;0.54 m<sup>3</sup> | &nbsp;&nbsp;45 | &nbsp;&nbsp;88% | &nbsp;&nbsp;55% |
| &nbsp;&nbsp;8 | &nbsp;&nbsp;Scooptrams | &nbsp;&nbsp;Tres Amigos | &nbsp;&nbsp;St-11 | &nbsp;&nbsp;Microscoop Xlh05d | &nbsp;&nbsp;Overprime | &nbsp;&nbsp;0.54 m<sup>3</sup> | &nbsp;&nbsp;45 | &nbsp;&nbsp;95% | &nbsp;&nbsp;0% |
| &nbsp;&nbsp;9 | &nbsp;&nbsp;Scooptrams | &nbsp;&nbsp;Tres Amigos | &nbsp;&nbsp;St-05 | &nbsp;&nbsp;Scooptram St7 | &nbsp;&nbsp;Atlas Copco | &nbsp;&nbsp;3.1 m<sup>3</sup> | &nbsp;&nbsp;193 | &nbsp;&nbsp;83% | &nbsp;&nbsp;37% |
| &nbsp;&nbsp;10 | &nbsp;&nbsp;Scooptrams | &nbsp;&nbsp;Tres Amigos | &nbsp;&nbsp;St-18 | &nbsp;&nbsp;Scooptram St1030 | &nbsp;&nbsp;Atlas Copco | &nbsp;&nbsp;4.5 m<sup>3</sup> | &nbsp;&nbsp;250 | &nbsp;&nbsp;80% | &nbsp;&nbsp;78% |
| &nbsp;&nbsp;11 | &nbsp;&nbsp;Scooptrams | &nbsp;&nbsp;Tres Amigos | &nbsp;&nbsp;St-06 | &nbsp;&nbsp;Scooptram St1030 | &nbsp;&nbsp;Atlas Copco | &nbsp;&nbsp;4.5 m<sup>3</sup> | &nbsp;&nbsp;250 | &nbsp;&nbsp;76% | &nbsp;&nbsp;80% |
| &nbsp;&nbsp;12 | &nbsp;&nbsp;Scooptrams | &nbsp;&nbsp;Colquechaquita | &nbsp;&nbsp;St-07 | &nbsp;&nbsp;Scooptram Toro 151d | &nbsp;&nbsp;Tamrock | &nbsp;&nbsp;1.5 m<sup>3</sup> | &nbsp;&nbsp;95 | &nbsp;&nbsp;85% | &nbsp;&nbsp;62% |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Scooptrams | &nbsp;&nbsp;Colquechaquita | &nbsp;&nbsp;St-17 | &nbsp;&nbsp;Scooptram Lh203 | &nbsp;&nbsp;Sandvik | &nbsp;&nbsp;1.5 m<sup>3</sup> | &nbsp;&nbsp;95 | &nbsp;&nbsp;62% | &nbsp;&nbsp;29% |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Trucks | &nbsp;&nbsp;Reserva | &nbsp;&nbsp;Mt-02 | &nbsp;&nbsp;Volquete Dt12 | &nbsp;&nbsp;Dux | &nbsp;&nbsp;12 tn. | &nbsp;&nbsp;148 | &nbsp;&nbsp;77% | &nbsp;&nbsp;63% |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Trucks | &nbsp;&nbsp;Reserva | &nbsp;&nbsp;Mt-05 | &nbsp;&nbsp;Volquete Dt12 | &nbsp;&nbsp;Dux | &nbsp;&nbsp;12 tn. | &nbsp;&nbsp;148 | &nbsp;&nbsp;56% | &nbsp;&nbsp;37% |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Trucks | &nbsp;&nbsp;Reserva | &nbsp;&nbsp;Mt-06 | &nbsp;&nbsp;Volquete Dt12 | &nbsp;&nbsp;Dux | &nbsp;&nbsp;12 tn. | &nbsp;&nbsp;148 | &nbsp;&nbsp;75% | &nbsp;&nbsp;60% |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Trucks | &nbsp;&nbsp;Tres Amigos | &nbsp;&nbsp;Mt-04 | &nbsp;&nbsp;Volquete Dts12 | &nbsp;&nbsp;Dux | &nbsp;&nbsp;12 tn. | &nbsp;&nbsp;148 | &nbsp;&nbsp;66% | &nbsp;&nbsp;39% |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;Trucks | &nbsp;&nbsp;Colquechaquita | &nbsp;&nbsp;Mt-01 | &nbsp;&nbsp;Volquete Dt12 | &nbsp;&nbsp;Dux | &nbsp;&nbsp;12 tn. | &nbsp;&nbsp;148 | &nbsp;&nbsp;79% | &nbsp;&nbsp;38% |
| &nbsp;&nbsp;6 | &nbsp;&nbsp;Trucks | &nbsp;&nbsp;Colquechaquita | &nbsp;&nbsp;Mt-03 | &nbsp;&nbsp;Volquete Dt12 | &nbsp;&nbsp;Dux | &nbsp;&nbsp;12 tn. | &nbsp;&nbsp;148 | &nbsp;&nbsp;88% | &nbsp;&nbsp;29% |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Auxiliary Equipment | &nbsp;&nbsp;Reserva | &nbsp;&nbsp;Sl-01 | &nbsp;&nbsp;Camion Utilitario S1-Sl5000n | &nbsp;&nbsp;Dux | &nbsp;&nbsp;5 tn. | &nbsp;&nbsp;148 | &nbsp;&nbsp;92% | &nbsp;&nbsp;39% |

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Source: Santacruz (2023)

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This list suggests that there is ample equipment with acceptable availability (70% to 73%) and low utilization (29% to 35%).

16.7 Mine
 Personnel

Total Manpower at the mine site including Mine, Plant, Maintenance, Services, and General and administrative in 2022 totaled 611 people consisting of 449 direct employees and 162 contractors. In the breakout table below, the contractors fill mostly the services roles.

The work in the mine takes place in three eight-hour shifts, with daylight shift starting at 7 am.

**Table 16-3: Mine Personnel (2022)**

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| &nbsp;&nbsp;**Mine** | &nbsp;&nbsp;**309** |
| &nbsp;&nbsp;Plant | &nbsp;&nbsp;43 |
| &nbsp;&nbsp;Engineering and Maintenance | &nbsp;&nbsp;62 |
| &nbsp;&nbsp;General & Administrative | &nbsp;&nbsp;35 |
| &nbsp;&nbsp;Contractors | &nbsp;&nbsp;162 |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**611** |

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Source: Santacruz 2023

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17 Process Description / Recovery Methods

The processing plant at the Don Diego accepts feed from the Cabello Blanco deposit as well as toll feed from artisanal miners. The Don Diego process uses sequential flotation to produce two concentrates: lead and zinc. Both concentrates contain high values of Silver with the lead concentrates containing approximately 6,500 g/t Ag and the zinc concentrates containing approximately 300 g/t Ag for company feed and 4,000 g/t Ag in the lead concentrate and 450 g/t Ag in the zinc concentrate for toll feed.

The mill uses a crushing, grinding, and flotation flowsheet to recover a lead concentrate and a zinc concentrate. Both concentrates are sold to Glencore, via overseas shipment from Antafagasta, Chile. The mill flowsheet can be found in Figure 17-1 in Section 17.1.

The mill generally separates company and toll feed into different days, but there are a few days where the feed is processed on the same day, with a shutdown separate the 2 feeds.

The company feed grade is determined by sampling the cyclone overflow, flotation tailings and lead and zinc concentrates. The production is reconciled monthly using smelter shipments, the tailings grade and the tonnes fed to the mill, which is standard practice for reconciling mill production. The toll ore is received by San Lucas, often in 1-2 t lots, where it is weighed and sampled. The ore is combined on a toll feed stockpile to be fed to the mill. The toll feed is reconciled in the mill the same as company feed.

The mill utilizes similar reagents strategies for the toll and company feed materials. The processing plant targets approximately 20% of the feed to be toll material.

17.1 Plant
 Flowsheet

The plant flowsheet for the Don Diego mill is a typical sequential flotation circuit for lead and zinc. The feed is crushed in preparation for the grinding circuit. The grinding circuit utilizes a SAG/Ball mill combination to produce a product size of 100 µm for the flotation circuit.

The flotation circuit starts with the lead recovery circuit. In this circuit a rougher concentrate is produced, which is then cleaned without regrinding, in column flotation cells. The lead rougher tailings and cleaner tailings are combined and fed to the zinc circuit. The zinc circuit consists of rougher flotation and one stage of cleaning to produce a zinc concentrate. The zinc circuit tailings are deposited in the tailings pond. Both of the concentrates are filtered for shipping to the smelter. The lead concentrate is bagged for shipping, while the zinc concentrate is shipped bulk in trucks.

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**Figure 17-1: Don Diego Mill Flowsheet**

![Diagram, schematic Description automatically generated](ex99-28_131.jpg)

Source: Glencore (2021)

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The process plant is in good condition as can be seen in Figure 17-2 and Figure 17-3. Figure 17-2 shows the grinding circuit of the Don Diego mill and Figure 17-3 shows a section of the lead flotation circuit.

**Figure 17-2: Don Diego Grinding Circuit**

![A large machine inside a factory Description automatically generated](ex99-28_132.jpg)

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**Figure 17-3: Don Diego Zinc Flotation**

![A close-up of a factory Description automatically generated with low confidence](ex99-28_133.jpg)

17.2 Mill
 Circuits

The processing plant is designed to process 1,100 tonnes/day of company feed or 800 t/d of toll feed. The plant produces two concentrates; a lead concentrate and zinc concentrate, both of which are high in silver.

17.2.1 Crushing

The plant feed is brought to the surface via haul truck and dumped into the crushing feed bin. The mineralized material is fed to a 12" x 36" jaw crusher via vibrating grizzly feeder. The jaw crusher discharge reports to a 4' x 12' vibrating screen. The screen undersize is conveyed to the fine ore bin. The screen oversize returned to a pair of cone crushers: a Svedala H-3000I-C/B/C-32 and a Symons 3' short head crusher. The tertiary crusher discharge is returned to the screen.

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17.2.2 Grinding

The coarse ore stockpile is reclaimed by underground vibratory feeder to a 12' dia. x 6.5' EGL SAG mill. The SAG mill has a trommel screen to return oversize material to the SAG mill. The fine particles are pumped to a cyclone cluster with 400 mm cyclones for size classification. The undersize is split between two 8' dia. X 9.5' EGL ball mills.

17.2.3 Flotation

The flotation circuit at the Don Diego mill utilizes sequential flotation to produce a lead and a zinc concentrate. The feed is directed to a lead flotation rougher circuit, which recovers lead and silver to be further cleaned. The tailings from the lead rougher circuit are conditioned with zinc activation reagents and then floated to make a zinc rougher concentrate.

17.2.3.1 Lead
 Flotation Circuit

The primary cyclone overflow reports to a sampler which collects the feed sample and then to a 7' dia. X 8' tall conditioning tank. where Aerophine 3418A, Aerofloat 232, and sodium isopropyl xanthate (Z-11) are added.

The conditioning tank discharges into a flotation column which is followed by a single 100 cubic foot and six-200 cubic foot rougher flotation cells. The rougher flotation cell tailings report to a bank of four 200 cubic foot continues to the lead scavenger flotation circuit which consists of four 200 cubic foot mechanical flotation cells and a single 100 ft<sup>3</sup> mechanical flotation cell.

The concentrate from the first 3 rougher flotation cells reports to the final lead concentrate pumpbox. The concentrate from the remaining rougher flotation cells reports to the 1<sup>st</sup> cleaner column and the cleaner scavenger column. The tailings from the cleaner scavenger column reports back to the lead circuit conditioning tank. The concentrate from the two columns is combined and pumped to the lead final concentrate.

The lead scavenger flotation tailings reports to the zinc flotation circuit conditioning tanks.

17.2.3.2 Zinc
 Flotation Circuit

The zinc flotation circuit starts with three conditioning tanks: two 7' dia. X 8' tall tanks and a single 6' dia. X 7' tall tank. Copper sulphate is added to encourage flotation of sphalerite. Once again, Z-11 is added as a collector. The zinc rougher circuit consists of six 150 cubic foot Wemco flotation cells. The zinc rougher circuit tailings is scavenged in a bank of six 300 ft<sup>3</sup> Wemco flotation cells.

The concentrate from the first two zinc rougher flotation cells is directed to the 2<sup>nd</sup> cleaner flotation circuit, which consists of four 300 ft<sup>3</sup> Galigher style flotation cells.

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The concentrate from the final four zinc rougher cells reports to the zinc 1<sup>st</sup> cleaner which consists of five 300 cubic foot Galigher flotation cells. The concentrate from the 1<sup>st</sup> cleaner flotation cells is pumped to the second cleaner flotation cells.

The rougher flotation tailings is directed to a bank of six 300 cubic foot zinc scavenger cells. The concentrate from the first four cells report to the zinc circuit conditioning tanks. The concentrate from the final two zinc circuit scavenger cells is directed back to the zinc scavenger feed.

The concentrate from the zinc 2<sup>nd</sup> cleaner flotation cells reports to the final zinc concentrate pumpbox. The tailings from the 2<sup>nd</sup> cleaner flotation cells is gravity fed into the feed of the 1<sup>st</sup> cleaner flotation cells.

17.2.4 Concentrate
 Dewatering

The concentrate dewatering circuit consists of two circuits, the lead concentrate dewatering circuit and the zinc concentrate dewatering circuit.

The concentrates produced at the Don Diego processing plant are sold to the Glencore refinery in Antafagasta, Chile. The zinc concentrate is shipped as a bulk product. The lead concentrate, due to local laws, is bagged prior to shipping.

17.2.4.1 Lead
 Concentrate Dewatering

The lead dewatering circuit consists of a 30 ft diameter lead concentrate thickener. The thickener overflow returns to the process water tank. The thickener underflow is pumped to a lead concentrate stock tank. The lead concentrate is then filtered in a 1.3 m x 1.3 m pressure filter. Alternatively, the Don Diego plant has a 4' diameter disc filter which can be used to filter lead concentrates when the pressure filter is not available.

Filtered lead concentrate is bagged for transport to the smelter, as is required by Bolivian law.

17.2.4.2 Zinc
 Concentrate Dewatering

The zinc concentrate is pumped to a 40 ft diameter zinc concentrate thickener. The thickener overflow returns to the process water tank. The thickener underflow is pumped to a zinc concentrate stock tank. The zinc concentrate is then filtered in either a 1.5 m x 1.5 m pressure filter or an 8.5 ft dia. x 6 disc filter.

17.2.5 Tailings

The Chilimocko tailings dam at Don Diego is inspected regularly and maintained to the standards set out by the Canadian Dam Association guidelines. The dam is under the supervision of engineers from AMEC (now Wood Engineering) and recently an external audit was conducted by Knight Piésold Consulting. The Chilimocko Dam is 55 m high, downstream-constructed dam, which contains 2.33 Mm<sup>3</sup> of tailings. The Stage IV raise was completed in 2019 and current crest elevation is 3,625 m. At current production rates, Chilimocko facility has capacity for 5 to 6 years before another raise to the dam is required.

There are also 4 closed tailings storage facilities associated with Don Diego Plant:

● Yana Khasa is a 40 m high, upstream-constructed dam, which contains 2.2 Mm<sup>3</sup> of tailings. Recent activities at the site include Repositioning piezometers, cleaning of the standpipe piezometers to improve groundwater monitoring, and Installation of fences to protect instrumentation; and

● Dikes 1, 2, and 3 are, upstream constructed dams which contain a total of 0.4 Mm<sup>3</sup> of tailings. Recent activities at the sites include cleaning of the standpipe piezometers to improve groundwater monitoring and Installation of fences to protect the instrumentation.

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18 Project Infrastructure and Services

Each of the three mining complexes that form the Caballo Blanco Project is supported by its own infrastructure, as detailed by mine in this section.

18.1 Mina
 Reserva

The Mina Reserva operation is surrounded by a facilities fence, inside of which are the following facilities:

● Various technical, administrative offices, and mine operations office;

● A maintenance facility for all surface and underground equipment;

● A mud dam for settling solids from the mine water;

● Warehousing facilities;

● A worker camp;

● A dining hall for technical and administrative staff;

● A first aid station;

● Water treatment; and

● Mine services, such as power, water supply, and compressed air.

The existing infrastructure for Mina Reserva is shown in Figure 18-1. Key facilities are identified by number on the drawing.

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**Figure 18-1: Infrastructure for Mina Reserva**

![A map of a terrain Description automatically generated](ex99-28_134.jpg)

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18.2 Mina
 Tres Amigos

The Mina Tres Amigos operation is also surrounded by a perimeter fence and similarly equipped with all mine services, including, inside of which are the following facilities:

● Various technical, administrative offices, and mine operations office;

● A maintenance facility for all surface and underground equipment;

● A mud dam for settling solids from the mine water;

● Warehousing facilities;

● A worker camp;

● A dining hall for technical and administrative staff;

● A first aid station;

● Water treatment;

● Mine services, such as power, water supply, and compressed air; and

● The Catalina headframe atop the mine shaft.

The existing infrastructure for Mina Reserva is shown in Figure 18-2. Key facilities are identified by number on the drawing.

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**Figure 18-2: Infrastructure for Mina Tres Amigos**

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18.3 Mina
 Colquechaquita

The Mina Colquechaquita operation is also surrounded by a perimeter fence and similarly equipped with all mine services, including, inside of which are the following facilities:

● Various technical, administrative offices, and mine operations office;

● A maintenance facility for all surface and underground equipment;

● A mud dam for settling solids from the mine water;

● Warehousing facilities;

● A worker camp;

● A dining hall for technical and administrative staff;

● A first aid station;

● Water treatment; and

● Mine services, such as power, water supply, and compressed air.

The existing infrastructure for Mina Reserva is shown in Figure 18-3Figure 18-2. Key facilities are identified by number on the drawing.

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**Figure 18-3: Infrastructure for Mina Colquechaquita**

![A map of a race track Description automatically generated](ex99-28_136.jpg)

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19 Market Studies and Contracts

19.1 Contracts

Off-take Agreements with Glencore International are in place for the Caballo Blanco Mine production: Contract No. 180-03-10309-P and Contract No. 062-03-10276-P, including all its addendums and amendments. These Off-Take Agreements are in effect through the life of the mine.

19.2 Market
 Studies

No market studies have been completed for the Project at this time. All commodities produced by the mine are regularly sold on vast international markets and the operation has an arrangement with a smelter to ensure continued product sales.

19.3 Smelting

The mine produces two saleable concentrates: lead, and zinc. Both are sent to Antafagasta, Chile for shipment overseas. Both are sold to Glencore. These include typical payment terms for all payable metals (Pb, Zn, Ag) and deductions for deleterious elements which potentially include Sb and Bi in the lead concentrate; and Cd, SiO<sub>2</sub>, and Fe in the zinc concentrate.

The approximate percentage net revenue by concentrate is ranked as follows:

● Zn Concentrate: 59%

● Pb Concentrate: 41%

The approximate percentage revenue by metal is ranked as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Ag: 58%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Zn: 39%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Pb: 3%

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19.4 Metal
 Prices

Historical silver, lead, and zinc prices are shown in **Figure 19-1** through **Figure 19-3**.

Figure 19-1: Historical Silver Price

Source: London Metals Exchange (2023)

Figure 19-2: Historical Lead Price

Source: London Metals Exchange (2023)

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Figure 19-3: Historical Zinc Price

Source: London Metal Exchange (2023

The zinc, silver and lead prices used in this Technical Report were selected based on the average of three years past and forward projections by CIBC and Consensus Economics, as shown in Table 19-1. These parameters are in line with other recently released comparable Technical Reports. These prices were used as the basis for the resource estimate, reserve estimate, and economic model.

**Table 19-1: Metal Price and Exchange Rate**

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| &nbsp;&nbsp;**Metal** | &nbsp;&nbsp;**Three Year Average** | &nbsp;&nbsp;**CIBC (Long Term)** | &nbsp;&nbsp;**Consensus Economics Forecast (Log Term)** | &nbsp;&nbsp;**Assumed Value** |
| &nbsp;&nbsp;Silver | &nbsp;&nbsp;23.39 | &nbsp;&nbsp;22.96 | &nbsp;&nbsp;20.48 | &nbsp;&nbsp;21.00 |
| &nbsp;&nbsp;Zinc | &nbsp;&nbsp;1.20 | &nbsp;&nbsp;1.27 | &nbsp;&nbsp;1.14 | &nbsp;&nbsp;1.15 |
| &nbsp;&nbsp;Lead | &nbsp;&nbsp;0.97 | &nbsp;&nbsp;0.94 | &nbsp;&nbsp;0.88 | &nbsp;&nbsp;1.00 |

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It must be noted that metal prices are highly variable and are driven by complex market forces and are difficult to predict.

Current (May 3, 2024) spot prices are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Ag: $26.50/oz

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Zn: $1.32/lb

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Pb: $1.00/lb

The QPs do not consider the difference between metal current prices and those assumed in this study to be material with regard to the estimation of the mineral resources, reserves, or financial model.

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20 Environmental Studies, Permitting and Social or Community Impacts

20.1 Environmental
 Considerations

Responsible environmental management is a critical part of Santacruz's license to operate and our responsible, compliant operation of Bolivian assets has continued for the last 30 years. Control of potential environmental impacts that can affect Santacruz's performance and the interests of internal and external stakeholders is paramount. Santacruz' environmental management approach is divided into three major areas; Water Management, Tailings Management, and Climate Change. However, other environmental issues are addressed as needed outside of these major management areas such as Waste Management, Land Use, Environmental Closure, and Biodiversity.

Environmental Compliance with national laws and regulations is the basis of Santacruz's environmental management system and is governed by a framework of oversight by the relevant Environmental Authority. However, the company's environmental management system allows it to identify and assess all effects of its operations in order to establish controls and improvement targets guided by best environmental practices and its responsibility to the communities in which it operates. Its environmental commitments are reported to the authorities annually in an Environmental Monitoring Report, which summarizes environmental management of its operations under applicable laws and regulations.

Santacruz is part of the Environmental Working Table within the Bolivia Network of the United Nations Global Compact, where it supports initiatives for raising awareness and environmental care, while also sharing experience from the field.

Based on comparison to the Baseline Environmental Audit Studies (ALBAs), mining activities in Santacruz's operations have not had a significant impact on the area's biodiversity. However, Santacruz actively manage risks related to land use by analyzing impacts on water resources and agriculture, adhering to national regulatory requirements, and applying relevant best practices from the ICMM for environmental closure. In the context of continuous improvement, Santacruz carried out partial remediation and rehabilitation tasks in industrial areas in accordance with the Progressive Closure Plan, in compliance with the Environmental Regulation for Mining Activities (RAAM) of Law No. 1333. None of Santacruz's mining operations are in direct proximity to a sensitive biodiversity area, and no species listed on the IUCN Red List or national conservation lists are identified as threatened by Santacruz's activities. However, Reserva Mine in Caballo Blanco is located near a Municipal protected area.

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20.1.1 Climate
 Change

The impacts and costs of addressing climate change is driven by global commitments, such as the Paris Agreement in 2015, which was signed by 193 countries, including Bolivia. The Agreement proposes, through international action, the reduction of global emissions to prevent the increase of 2° C in the planet's temperature. In this regard, the Bolivian government, through Law No. 835 of 2016, committed to preserving the integrity of Mother Earth, and private industry is expected to join global initiatives on climate change. Climate change has been identified as a material topic due to its potential negative impacts in the medium and long term, particularly in terms of water use and the energy limitations that the mining sector must face. This has been evaluated in Santacruz's corporate risk matrix, and Santacruz is taking actions to address this risk. Santacruz recognize the importance of the required actions in response to Climate Change and strive to ensure mining operations with the least possible environmental impact. focus its efforts mainly on efficient water management and energy efficiency. The cost of energy is one of the largest components of Santacruz's operating expenditures. Ninety percent of the electricity consumed in Santacruz's operations is purchased from the national power grid which relies mostly on fossil fuels (73%). One of Santacruz's direct actions is the management of two power plants that supply electricity to Colquechaquita Mine (Caballo Blanco):

● Hydropower Plant - Renewable energy from Yocalla, which generates 870 CVA s a generation facility that converts the potential energy from falling water into electricity, with a generation capacity of 870 CV; and

● Aroifilla Thermoelectric Plant, which operates on natural gas and has a generation capacity of 200 KW.

Santacruz's operations consumed a total of 91,500 M Watt-hours from the national grid and Santacruz's own power plants, representing a 3% increase compared with the previous year's consumption against a 7% growth in production. 90% of the electricity consumed is purchased from the National Grid, while the remaining electricity is generated by Santacruz's Aroifilla thermoelectric power plant (5%) and Yocalla Renewable hydroelectric power plant (4%).

Electric energy and natural gas are measured via dedicated meters installed for this purpose. Gasoline and diesel fuel consumption is tracked through the records of outgoing supplies managed by warehouses, which are solely for the company's equipment and vehicles. Energy intensity can then be calculated to allow monitoring of overall energy efficiency. In 2022, Santacruz's energy intensity per tonne of concentrate was 2,544 MJ/ton, a 10% reduction compared with the previous year, and 30.5% decrease since 2018. This reduction is attributed to more efficient production processes and increases in production that allow energy to be used more effectively.

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**Figure 20-1: Santacruz Bolivia Operations Energy Consumption**

![A graph of energy consumption Description automatically generated](ex99-28_140.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

Atmospheric Emissions are associated with the transportation of materials and personnel to and between the mines, resulting from dust and particulate matter generated by truck transport on unpaved roads. To prevent dust and particulate material dispersion in the air, Santacruz has implemented controls, such as frequent watering of gravel roads. In 2022, Santacruz continued to perform ambient air quality monitoring at specific points designated in Santacruz's environmental permits. These monitoring activities assess the levels of PM-10 and metallic contents in the air, and the results are well below the permissible limits. Santacruz also reports the emissions of SOx and NOx resulting from the combustion of natural gas in Santacruz's Aroifilla thermoelectric plant in Potosí. These emissions are also below the permissible limits established by law. The calculation of these emissions is based on measurements conducted by an independent certified environmental laboratory.

20.2 Waste
 and Water Management

Waste management is an important part of Santacruz's Comprehensive Environmental Management, which includes a waste management plan to classify, handle, and store waste separately for proper disposal or treatment. Waste management complies with Environmental Law No. 1333, its Regulations on Solid Waste Management, and its supplementary regulations, focusing primarily on the sectoral requirements of the Environmental Regulation for Mining Activities for waste rock and tailings.

Waste management extends beyond Santacruz's production operations and includes administrative activities and healthcare facilities managed by Santacruz. Santacruz has begun initiatives for recycling and reuse of domestic waste at several of Santacruz's operations, including plastic recycling campaigns, paper reuse, and compost generation from food waste. Industrial wastes such as oils, greases, scrap, and tires, are sold to recognized recyclers. It ensures that these recyclers are regulated and certified by the environmental authorities to ensure compliant reuse and recycling.

Santacruz classifies waste based on its source of generation. Waste Management then addresses separation by kind of waste, collection, temporary storage and final disposal.

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**Figure 20-2: Waste Classification by Process Source**

![A diagram of a waste recycling process Description automatically generated](ex99-28_141.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

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**Table 20-1: Total Waste Quantification and Treatment/Disposal**

![A screenshot of a diagram Description automatically generated](ex99-28_142.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

Water management has been identified as the most critical environmental area. Water is a shared resource of high social, environmental, and economic value, which is also a critical component of Santacruz's mining and metallurgical activities. Mining operations are located in the Bolivian Highlands, in areas with low precipitation, high evapotranspiration, and threats of drought.

According to data presented in the "Ecological Threat Register", which ranks countries and watersheds worldwide based on their exposure to water-related risks, Bolivia has a low country risk (10- 20%) of water vulnerability and is not considered a water-stressed country. However, in accordance with the "Aqueduct Water Risk Atlas" by the World Resources Institute, the highland areas where Santacruz operates are considered as Medium Risk (Bolívar) and High Risk (Caballo Blanco and Porco). According to these recognized international public tools, Santacruz deems the care and preservation of water critical aspects of Santacruz's management system and strives to ensure access to water for communities and operational needs.

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During the mining production process, water comes into contact with heavy metals, so it must be treated before being use or discharge. Monitoring water quality and quantity and the use of water balance monitoring, Santacruz is able to comply with the criteria required by the Regulations on Water Pollution (RMCH) of Environmental Law No. 1333. Santacruz is also subject to periodic inspections by applicable environmental authorities and community representatives. Water balances for each operation are verified using flow meters and reservoir level bathymetry to ensure accurate and validated information for assessing, proposing, and identifying opportunities for improving water management.

Water Treatment - The underground mining activities produce an excess of water which must be pumped from the mine. This water may contain suspended solids and chemical contaminants (such as pyrite and heavy metals), which would require treatment for reuse of discharge. Water treatment includes the following steps:

**Figure 20-3: Water Treatment Process**

![A diagram of a diagram Description automatically generated with medium confidence](ex99-28_143.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

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**Table 20-2: Santacruz Bolivia Water Volumes**

![A screenshot of a computer Description automatically generated](ex99-28_144.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

Operational consumption is used for drilling, mine services, irrigation, and process water sourced by reclaim from the Tailings Dam. The actual water consumption is the difference between "extracted" water and "discharged water", resulting in 1,9 million m<sup>3</sup> consumed in 2022 for all mines.

Santacruz treats excess water to meet applicable required standards and discharge it to surface water at authorized points specified in Santacruz's environmental permits. The discharge parameters as set out in Water Pollution Regulations Law No. 1333, include pH, iron, zinc, lead, and suspended solids, which are typical in the water treated from the mine.

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**Figure 20-4: Santacruz Bolivia Water Balance**

![A graph of water balance Description automatically generated](ex99-28_145.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

20.2.1 Solid
 Waste

The Don Diego process plant is distal from the mines which feed it. The process plant along with the Tailings Storage Facility are located about 23 km Northeast of the city of Potosi, in the Don Diego Canton, Municipality of Chaqui, Cornelio Saavedra Province, of the Department of Potosi. At an elevation of 3,550 masl at UTM coordinates WGS-84: 228933E and 7841150N. There is a 60 km drive from the mines to the Don Diego Processing plant.

The Chilimocko tailings storage facility at Don Diego is inspected regularly and maintained to the standards set out by the Canadian Dam Association guidelines. The dam is under the supervision of engineers from AMEC (now Wood Engineering) and recently an external audit was conducted by Knight Piésold Consulting. The Chilimocko Dam is 55 m high, downstream-constructed dam. The Stage IV raise was completed in 2019 and current crest elevation is 3,625 m. Construction for the next expansion is planned to begin in 2024 and conclude 12 months later.

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**Figure 20-5: Volume profile of the Chilimocko Dam by Stage Height**

![A graph with a line and a blue arrow Description automatically generated](ex99-28_146.jpg)

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**Figure 20-6: Aerial Photography of the Chilimocko TSF**

![A aerial view of a lake Description automatically generated](ex99-28_147.jpg)

Source: Glencore (2019)

The company also monitors and manages 4 inactive tailings facilities (1, 2, 3 & Yanakasa) at the Don Diego location.

Yana Khasa is a 40 m high, upstream-constructed dam, which contains 2.2 Mm<sup>3</sup> of tailings. Recent activities at the site include Repositioning piezometers, cleaning of the standpipe piezometers to improve groundwater monitoring, and Installation of fences to protect instrumentation; and

Dikes 1, 2, and 3 are, upstream constructed dams which contain a total of 0.4 Mm<sup>3</sup> of tailings. Recent activities at the sites include cleaning of the standpipe piezometers to improve groundwater monitoring and Installation of fences to protect the instrumentation.

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Although mine waste rock is preferentially stored underground or used as backfill, each of the mines has a permitted and designed waste rock storage area designed for stability, as well as the prevention of acid rock drainage and metal leaching. Sludge from the water treatment plants is deposited in lined ponds adjacent to the treatment plants. Given the mines' proximity to the City of Potosi, Domestic and Medical waste disposal are managed through the Municipal Garbage Collection Service. Industrial waste such as scrap metal, used Oil, tires, etc. is temporarily stored at each mining unit and collected by companies specialized in recycling.

**Table 20-3: Stored Tonnes of Waste Rock by Category (2022)**

![A table with different types of waste Description automatically generated](ex99-28_148.jpg)

20.2.2 Water
 Management

Each of the mines produces enough water to treat and reuse for industrial use on site. Excess treated water is discharged to the environment at regulated quality standards. Annually, a total of 2.5 Mm<sup>3</sup> of mine water is treated and 2.4 Mm<sup>3</sup> discharged from two water treatment plants.

Given the remote location of the process plant, which is usually the largest water consumer, each mine treats and discharges excess water to the environment. These discharges are regulated for quality and quantity by the environmental license. End uses include consumption by neighboring communities and agricultural/industrial use by llama ranchers and mining cooperatives downstream. Caballo Blanco supplies two thousand cubic meters of treated water per year to the local sanitary administration (AAPOS) to support industrial activities and discharges the remaining treated water to the Jayaquila and Mocaña rivers. Caballo Blanco is able to meet discharge requirements with aeration, pH adjustment and clarification by settling.

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Don Diego process plant maximizes the recirculation of water from its tailing storage facility and draws makeup water from permitted surface sources.

**Figure 20-7: Caballo Blanco Mine Water Balance**

![A graph of water balance Description automatically generated](ex99-28_149.jpg)

Source: Sinchi Wayra 2022 Sustainability Report

20.3 Permitting

Santacruz Silver operates the Bolivar mine as a joint venture with the Bolivian Government (COMIBOL) The structure of the contract with COMIBOL is a "Partnership Contract governing Bolivar and Porco Mines (CA-MBP), and its purpose is to develop and implement a mining operation for the treatment of the existing mineralogical reserves and resources in the Bolívar and Porco Mines, by the exploitation, preparation, beneficiation and sale of mineral concentrates. Contrato de Asociación Sociedad Minera Illapa S.A. is authorized as operator and responsible of executing on behalf of COMIBOL, all the operations and activities of the association contract. The shares of CA-MBP are 55% for COMIBOL and 45% for Contrato de Asociación Sociedad Minera Illapa S.A." This renewable agreement expires in 2028.

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Mining Contracts that grant the right to the subsoil mining resource, is granted by the Mining Administrative Jurisdictional Authority (AJAM) over the ATE mining areas, and a contract is granted for each area or contiguous group of areas. Recent changes to the laws and government personnel have pushed Santacruz contract updates into a transitionary period waiting for final signatures and approvals. Santacruz holds Special Transitory Authorizations for each contract area which are officially designated "Mining Administrative Contracts for Adaptation". As of the effective date, approximately half of the applications have been transitioned, and the remainder fall under Article 187 of Law No. 535 on Mining and Metallurgy, which states:

*<u>ARTICLE 187</u>. (CONTINUITY OF MINING ACTIVITIES). Holders of Special Transitory Authorizations to be adapted or in the process of adaptation will continue their mining activities, with all the effects of their acquired or pre-constituted rights until the conclusion of the adaptation procedure.* 

 

Santacruz has fully complied with this administrative procedure and is waiting for the Mining Administrative Authority to issue the relevant documents. It should be noted that this public entity has a considerable delay in the issuance of these documents.

Environmental Licenses have been formally granted to allow operation for all mining activity, by the Ministry of Environment and Water. The following table shows the licenses held by Santacruz:

**Table 20-4: Environmental Licenses Held by Santacruz**

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| &nbsp;&nbsp;**Operation** | &nbsp;&nbsp;**License** |
| &nbsp;&nbsp;Bolívar | &nbsp;&nbsp;040603-02-da-0324/14 |
| &nbsp;&nbsp;Porco | &nbsp;&nbsp;051203-02-da-0031/14 |
| &nbsp;&nbsp;Caballo Blanco – Colquechaquita Mine | &nbsp;&nbsp;050101-02-da-131/11 |
| &nbsp;&nbsp;Caballo Blanco – Mina Reserva and Tres Amigos | &nbsp;&nbsp;050101-02-da-561/11 |
| &nbsp;&nbsp;Caballo Blanco – Don Diego Concentrator Plant | &nbsp;&nbsp;050302-02-da-003/2024 |
| &nbsp;&nbsp;Caballo Blanco – San Lorenzo Mine | &nbsp;&nbsp;050101-02-da-005/06 |
| &nbsp;&nbsp;Comco | &nbsp;&nbsp;050101-02-da-006/09 |
| &nbsp;&nbsp;Soracaya | &nbsp;&nbsp;050801-02-CD-C3-002/2017 |
| &nbsp;&nbsp;Aroifilla Thermoelectric Plant | &nbsp;&nbsp;050101-04-da-007/2023 |
| &nbsp;&nbsp;Yocalla Hydroelectric Plant | &nbsp;&nbsp;050103-05-da-006/2023 |

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20.4 Community
 Relations

Santacruz mining projects are mostly well-established operations with a long history and a developed infrastructure, which provide direct benefits to employees and supporting businesses. However, the mines are located in rural to semirural areas in which the surrounding mostly agricultural communities can benefit from each operation only indirectly or through company outreach. Santacruz supports these communities by addressing services that are lacking, and helping to create value with economic development programs, and other forms of support.

Mining represents a significant portion of the Bolivian economy and is especially critical to local economies through employment, tax revenue and local procurement or supply. The high dependency on mining of areas influenced by Santacruz operations obliges responsible action and support for the health of these communities, as well as its employees and their families. Santacruz is interested in fostering an environment of social peace, respect, and mutual progress. The Social Management team for each operations consists of a dedicated Superintendent along with supporting personnel who ensure the fulfillment of its commitment to the communities.

To be most effective local Social Management groups have established communication channels to learn about the perceptions, concerns, requests, or complaints from within stakeholder communities. The communities can communicate their inquiries, complaints, concerns, and issues through letters addressed to the company, formal meetings, or the Santacruz "Ethics Hotline" channel. The local Social Management team routinely conducts community and area visits inspections and, in the case of a complaint, conducts the necessary verifications. The main channel of communication is through in-person meetings involving community leaders where minutes are recorded. As such, all parties can move cooperatively forward with acceptable initiatives and mitigations.

Prior to action, Santacruz must take into consideration social challenges faced by the country and the communities, as well as each initiative's possible impacts on the life of people. Its actions are aimed at identifying vulnerable groups and obtaining their participation. It identifies impacts and assess risks associated with each initiative, as well as changes in Santacruz's operations that may have repercussions on the community.

**Table 20-5: Communities and Population Proximal to Santacruz Operations**

![A red and white table with white text Description automatically generated](ex99-28_150.jpg)

Source: Santacruz (2023)

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Common concerns addressed during the meetings with community leaders focus on job opportunities within the company and monitoring medium- to long-term commitments. The change of shareholders that occurred with the Santacruz purchase in March 2022 generated uncertainty in several communities, and a process of communication and meetings was necessary to assure and demonstrate that the company will maintain normal operations and fulfill its commitments to the fullest extent. The major concerns of the proximal communities put forth in 2022 are outlined in Table 20-6.

**Table 20-6: Concerns Put Forth by Proximal Communities in 2022**

![A table with text on it Description automatically generated](ex99-28_151.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

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Santacruz's investments focus on donation of assets, goods, products, and in-kind services, minimizing cash disbursements to directly benefit the communities. As part of Santacruz's support, Santacruz has invested over $300,000 in infrastructure, including housing, pedestrian bridges, electrification, water diversion systems for irrigation, and basic sanitation, among other infrastructure projects. As a company, Santacruz encourages the communities to manage and prioritize long-term projects with a greater impact. At all times, and particularly during implementation, the communities are heavily involved in each project.

A rigorous company due diligence policy governs the contributions and investments made to community projects, so that they are made in accordance with the company's values and ethics codes. The process begins with the requests proposed by the communities through their leaders, followed by meetings held between the Community leaders and the company during which, formal agreements are executed, which approve mutually accepted projects to be implemented.

**Figure 20-8: Total Investment in Communities**

![A graph of a growing number Description automatically generated with medium confidence](ex99-28_152.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

A key player connected with all Bolivian Mines and surrounding areas are the mining cooperatives which are organized independent mining entities, some quite capable and organized with their own equipment. Recognized by the government as a valid economic activity for local development, they conduct their activities in abandoned mines or expropriating active mines, which can pose risks to business. The relationship is not completely one-sided as the Cooperatives sell mineralized material to process their product, thus mechanisms are in place to face possible subjugations, protect mine employees and the communities.

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More importantly, proactive solutions and agreements to avoid conflict and coexist peacefully with the different cooperatives are in place. As much as possible, with cooperatives as toll processors at Santacruz Process Plants, compliance with occupational health and safety, human rights, and good work practice is sought.

To incorporate a new supplier, an assessment is required, including:

● Submission of legal documents proving that they are up to date with regard to any rules in force;

● The mineral supplier's background is verified; for this purpose, we have access to the Thomson Reuters and Info center systems, which report their background globally. This system informs us whether the supplier has any negative local or international background; in that case, Santacruz would not deal with them;

● Commercial visit to the supplier's operations, to directly verify the standards such as the 132 company's Code of Ethics; In particular, whether or not child labor is employed in the operations, and any other Human Rights violations, and observations of the use of safety equipment and personal protective equipment; and

● Machinery is assessed to ensure good condition safe operation.

Once all these steps are completed and upon the in-situ verification of legal documents, the relationship with the cooperative is authorized. A pilot support program was launched in 2019 to supply advisors and technical assistance on environment, human rights, occupational health & safety, and administrative management. The goal being to help mineral suppliers improve their internal systems and processes to ensure sustainability and compliance with Santacruz sustainability standards.

Caballo Blanco comprises a business unit with mines spread across several kilometers on the same mineralized trend and an offsite process plant and tailing facility, all proximal to the city of Potosí. Unlike Bolívar and Porco, Caballo Blanco does not have an adjacent campsite. Most employees live in the communities surrounding the city of Potosí. The mines are named Colquechaquita, Reserva, and Tres Amigos. The Don Diego Plant is located 60km away by road; other supporting units are central administrative offices in Potosí, the Thermal Power Plant in Aroifilla, and the Hydroelectric Power Plant in Yocalla. Operations at Caballo Blanco are not yet consolidated and require independent management and support. Mine operations, maintenance, planning, safety and environment, groups are separate for each mine.

Since Caballo Blanco covers a wide area, it affects many small communities. Consequently, at Caballo Blanco a large area is monitored including 13 small communities which include a population of more than 500 families or around 2,500 community members. Several mining cooperatives are also involved.

In the area of Colquechaquita, Reserva and Tres Amigos, the communities are scattered and sparsely populated, but host the settlement of cooperative miners downstream from our mining operations. Additionally, camelids are bred near the wetlands of the Jayaquilla River and Mocaña Mayu.

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Adjacent to the Concentrator Plant is the settlement of Don Diego, where several Santacruz employees live. There are also other more distant and less populated communities.

Santacruz's community investment programs are aimed mostly at communities directly influenced by the operations. Community investments are designed to maximize positive impact, recognizing that each community has unique requirements and living conditions; therefore, Santacruz prioritizes based on number of beneficiaries, vulnerability, long-term sustainability, and urgency of need.

**Table 20-7: Caballo Blanco Local Populations**

![A table with numbers and letters Description automatically generated](ex99-28_153.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

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**Figure 20-9: Caballo Blanco Surrounding Communities**

![A map of a town Description automatically generated](ex99-28_154.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

20.4.1 Education

Santacruz has engaged in the following activities to support education in the region:

● Established a scholarship program for outstanding students, children of employees that graduate from the Ollerías school at the elementary, high school and university levels. In 2021, 16 scholarships were awarded;

● Sponsored the school breakfast program in the schools within the area of influence which benefited more than 300 students;

● Provided a full-time salary for a full-time computer teacher in schools in Jayaquilla and Don Diego, which benefits more than 120 students;

● Supported the School Board of Don Diego by paying the salaries of service staff and teachers, benefiting 300 students; and

● Provide student transportation in the communities of Pucara, Negro Tambo, Chaquilla, Ollerías, Jayaquilla, Condoriri, Huanuni, Cachitambo and Calamarca, benefiting approximately 500 children.

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20.4.2 Community
 and Economic Development

Santacruz has encouraged community and economic development in the region following ways:

● Supported the administrative capacity of economic development projects in the community, promoting their production located in Don Diego, Chilimocko, Negro Tambo, Palcamayo, Huanuni, Chaquilla B, and Ollerias. This benefits more than one thousand people;

● Established a workforce training program and microenterprise creation in alternative sectors in Don Diego, working in collaboration with the Center of Mothers; and

● Donated and installed 4.4 km of irrigation pipelines in Yocalla, benefiting 800 people.

20.4.3 Environmental
 Initiatives

Santacruz has undertaken several environmental initiatives, including the following:

● Donated 400 quintals of food supplements for camelid cria and females, in support of the maintenance of the fauna in the area and the economic diversity;

● Purchased materials and aggregates for road improvement, benefiting 60 families; and

● Provided support works to provide water by drilling wells with a capacity of 2 liters per second, which benefits 15 families.

In August 2022, one person from the Ollerías community filed a lawsuit with the Agro environmental court against the Tres Amigos Mine operation, alleging contamination in the area due to the runoff of material containing minerals caused by rainfall. The relevant legal process was conducted by the assigned Agro-environmental Judge, and the company presented the necessary defense documents. The plaintiff withdrew their complaint, and the judicial authorities requested the company to submit an environmental improvement plan for the area, thus concluding the proceedings.

20.4.4 Local
 Needs

Santacruz has responded to local needs in several ways including the following:

● Sponsored social and cultural activities in several communities, benefiting more than 1,600 people;

 

● Provided maintenance for an agricultural tractor to ensure its optimal functioning; and

 

● Improved two high-voltage power line networks and made enhancements to the transformer, increasing the electrical capacity in the area and benefiting 25 families.

 

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20.4.5 Health
 and Sports

Santacruz has supported health and sports for the local communities in several ways including:

● Promoted, supported and sponsored sports events, benefiting more than 800 people; and

● Proceeded with the next stage of improving the sports infrastructure at the Jayaquilla Educational Unit's sports field.

**Figure 20-10: Caballo Blanco Community Investment**

![A graph of a graph of the cost of a dollar Description automatically generated with medium confidence](ex99-28_155.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

20.5 Mine
 Closure

Closure Planning for Operations has social, economic, workforce, and environmental impacts, so conceptual closure plans are shared with communities. Santacruz's goal is to recover areas by establishing a healthy ecosystem capable of sustaining productive land use, ensuring the best possible environmental conditions, including physical, chemical, biological, and ecosystem aspects, at closure. Environmental superintendents are responsible for monitoring the environmental closure planning, and periodic reviews of these plans are conducted, including surveys of areas and activities to adjust financial provisions for closure.

Land Use and Rehabilitation - environmental challenges related to biodiversity protection, soil restoration, and land use, are addressed through dialogue with stakeholders, including local communities and relevant authorities. Our comprehensive environmental management focuses on minimizing disturbed areas. In 2022, Santacruz managed a total of 6,600 hectares of land covered by Temporary Special Authorizations (ATEs) granted by the Mining Administrative Jurisdiction Authority (AJAM), under leasing contracts with the Government through COMIBOL. However, Santacruz's processing activities, services, and related infrastructure (industrial area) currently occupy only 400.5 hectares of land, including areas of previous mining operations and other areas with environmental closure located within the properties Santacruz manage.

In 2022, Santacruz continued with the reforestation plan in the Queaqueani Dam area, in accordance with an agreement with the community of the same name, and significant progress was made in the progressive closure of the old tailings facilities at the Don Diego Concentrator Plant.

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21 Capital and Operating Costs

21.1 Capital
 Costs

The Caballo Blanco mine has been in continuous operation for many years. There will be, as the reserve is expanded and developed, the need for step changes in mine access, production or haulage methods, that may require large capital outlays. These will be financially justified as needed. However, the capital needs for continued operation to exploit the remaining reserves is limited to Primary mine development, Capital equipment rebuilds and replacements, and Tailing Storage Facility expansions. Average annual capital has been and is projected to be in the 11 to 12 $M range.

The historic total capital requirement for all the Bolivian operations is shown in Table 21-1, with Caballo Blanco requirements bolded and italicized. Caballo Blanco's projected capital requirements for 2023 to 2027 is shown in Table 21-2.

**Table 21-1: Actual Combined Capital Requirement for All Bolivian Operations, 2017 to 2022 ($M)**

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|  | &nbsp;&nbsp;**2017** | &nbsp;&nbsp;**2018** | &nbsp;&nbsp;**2019** | &nbsp;&nbsp;**2020** | &nbsp;&nbsp;**2021** | &nbsp;&nbsp;**2022** |
| &nbsp;&nbsp;**Bolivar** | &nbsp;&nbsp;**8.8** | &nbsp;&nbsp;**13.7** | &nbsp;&nbsp;**13.7** | &nbsp;&nbsp;**6.3** | &nbsp;&nbsp;**11.3** | &nbsp;&nbsp;**10.2** |
| &nbsp;&nbsp;Porco | &nbsp;&nbsp;3.0 | &nbsp;&nbsp;8.8 | &nbsp;&nbsp;8.4 | &nbsp;&nbsp;3.6 | &nbsp;&nbsp;5.3 | &nbsp;&nbsp;3.1 |
| &nbsp;&nbsp;**Reserva** | &nbsp;&nbsp;**1.3** | &nbsp;&nbsp;**2.4** | &nbsp;&nbsp;**2.1** | &nbsp;&nbsp;**2.0** | &nbsp;&nbsp;**4.3** | &nbsp;&nbsp;**3.5** |
| &nbsp;&nbsp;**Tres Amigos** | &nbsp;&nbsp;**2.1** | &nbsp;&nbsp;**2.6** | &nbsp;&nbsp;**1.5** | &nbsp;&nbsp;**1.8** | &nbsp;&nbsp;**2.2** | &nbsp;&nbsp;**3.0** |
| &nbsp;&nbsp;**Don Diego** | &nbsp;&nbsp;**0.9** | &nbsp;&nbsp;**6.9** | &nbsp;&nbsp;**1.4** | &nbsp;&nbsp;**0.9** | &nbsp;&nbsp;**1.1** | &nbsp;&nbsp;**1.2** |
| &nbsp;&nbsp;**Colquechaquita** | &nbsp;&nbsp;**1.2** | &nbsp;&nbsp;**2.0** | &nbsp;&nbsp;**1.4** | &nbsp;&nbsp;**1.0** | &nbsp;&nbsp;**3.0** | &nbsp;&nbsp;**2.5** |
| &nbsp;&nbsp;La Paz | &nbsp;&nbsp;3.3 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;0.3 | &nbsp;&nbsp;0.4 | &nbsp;&nbsp;0.2 | &nbsp;&nbsp;0.7 |
| &nbsp;&nbsp;Soracaya | &nbsp;&nbsp;0.5 | &nbsp;&nbsp;2.1 | &nbsp;&nbsp;0.2 | &nbsp;&nbsp;0.1 |  |  |
| &nbsp;&nbsp;San Lucas | &nbsp;&nbsp;0.8 | &nbsp;&nbsp;0.0 | &nbsp;&nbsp;0.0 | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;0.4 |  |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**21.8** | &nbsp;&nbsp;**39.0** | &nbsp;&nbsp;**28.5** | &nbsp;&nbsp;**16.3** | &nbsp;&nbsp;**27.8** | &nbsp;&nbsp;**24.3** |

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Source: Santacruz (2023)

**Table 21-2: Projected Capital Requirement for all Caballo Operations, 2023 to 2028 ($M)**

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|  | &nbsp;&nbsp;**2023** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2026** | &nbsp;&nbsp;**2027** | &nbsp;&nbsp;**2028** |
| &nbsp;&nbsp;Engineering/Admin | &nbsp;&nbsp;0.0 | &nbsp;&nbsp;0.0 |  |  |  |  |
| &nbsp;&nbsp;Safety/Environmental | &nbsp;&nbsp;0.8 | &nbsp;&nbsp;3.0 | &nbsp;&nbsp;2.1 | &nbsp;&nbsp;2.0 | &nbsp;&nbsp;0.1 |  |
| &nbsp;&nbsp;Mobile Equipment/Maint | &nbsp;&nbsp;1.6 | &nbsp;&nbsp;3.7 | &nbsp;&nbsp;2.6 | &nbsp;&nbsp;3.8 | &nbsp;&nbsp;2.1 | &nbsp;&nbsp;1.8 |
| &nbsp;&nbsp;Plant | &nbsp;&nbsp;0.4 | &nbsp;&nbsp;0.7 | &nbsp;&nbsp;0.7 | &nbsp;&nbsp;0.7 | &nbsp;&nbsp;0.5 | &nbsp;&nbsp;0.5 |
| &nbsp;&nbsp;Exploration | &nbsp;&nbsp;0.4 | &nbsp;&nbsp;0.3 | &nbsp;&nbsp;1.5 | &nbsp;&nbsp;1.4 | &nbsp;&nbsp;1.3 | &nbsp;&nbsp;0.7 |
| &nbsp;&nbsp;Primary development | &nbsp;&nbsp;6.5 | &nbsp;&nbsp;6.0 | &nbsp;&nbsp;6.8 | &nbsp;&nbsp;5.6 | &nbsp;&nbsp;4.4 | &nbsp;&nbsp;2.4 |
| &nbsp;&nbsp;Corporate |  |  |  |  |  |  |
| &nbsp;&nbsp;***Total*** | &nbsp;&nbsp;***9.8*** | &nbsp;&nbsp;***13.7*** | &nbsp;&nbsp;***13.7*** | &nbsp;&nbsp;***13.5*** | &nbsp;&nbsp;***8.3*** | &nbsp;&nbsp;***5.4*** |

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Source: Santacruz (2023)

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Recurring exploration and primary development costs have been included in the COG calculations to better anticipate and account for total costs and make the COG more meaningful for reserve estimation and mine planning.

21.2 Operating
 Costs

Costs used for cut-off grade analysis were taken from actual costs from the last six months of 2022, and the first three months of 2023. This most recent cost history was deemed the most accurate and stable period, and which best represented the true costs of the operation. Sinchi Wayra was acquired by Santacruz Silver in March of 2022, so it was decided to use actual costs incurred while the mines were under current ownership. The actual cost of corporate G&A was allocated to each of the businesses.

**Table 21-3: Unit Operating Costs ($/t)**

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|:---|:---|
| &nbsp;&nbsp;**Mine** | &nbsp;&nbsp;**75.66** |
| &nbsp;&nbsp;Mine operations | &nbsp;&nbsp;42.13 |
| &nbsp;&nbsp;Mine maintenance | &nbsp;&nbsp;19.19 |
| &nbsp;&nbsp;Indirect | &nbsp;&nbsp;14.34 |
| &nbsp;&nbsp;Plant | &nbsp;&nbsp;17.10 |
| &nbsp;&nbsp;Warehouse | &nbsp;&nbsp;0.89 |
| &nbsp;&nbsp;G&A | &nbsp;&nbsp;13.28 |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**106.94** |

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Source: Santacruz (2023)

Mine operations include direct costs of mining, including labor, energy, materials, and services.

Mine Equipment Maintenance Costs includes maintenance to all equipment related to direct development, exploitation and haulage, as well as service equipment such as pumping, ventilation, winches, etc.

Indirect costs would include Site Management, Technical services, Site Administration, Environmental and Social, Safety and Security.

Plant costs include direct Beneficiation costs as well as plant maintenance, and indirect costs.

Warehouse costs refer to Concentrate handling and storage.

General and Administration includes allocated Bolivian corporate costs.

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22 Economic Analysis

22.1 Result

The Reserve Estimate was generated using actual costs experienced during a stable production period following the change in management after the purchase of the mine by Santacruz Silver (2022 and beginning of 2023). Actual costs were used for mine operating, concentrate overland transport, port costs, and shipping as well as smelting fees, payment terms, and penalty charges in effect during that period. A simplified Cash flow model was built to model the costs and conditions used to generate the Reserve estimates stated in this report.

The Caballo Blanco mine is part of a multi-operation business. However, the Economic model treats it as a separate financial entity with Bolivian corporate costs allocated for the analysis. As well, the operation is comprised of three mines which feed one offsite Process plant. The financial modelling examines the value of the consolidated operation on a 100% basis to support the Reserve statement.

The Caballo Blanco mines have been in continuous operation for several decades and the deposits are a network of relatively narrow veins. These two aspects drive the normal exploitation process of the mine, where inferred resources are converted and exploited in the same budget year. Resources are generally proven-up by drifting and sampling instead of drilling. Therefor normal budgeting and mine planning includes resources outside of the Reserve estimate.

For the current exercise in this report, only Proven and Probable reserves are included in financial evaluation, so the production schedule represents the depletion of these reserves at average grade and current production rates. The context of the production schedule exploits the Proven and Probable reserves as part of a continuous operation and as such does not include the closure activities.

**Table 22-1: Production Forecast – Mining and Processing**

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|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Unit** | &nbsp;&nbsp;**2023** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2026** |
| &nbsp;&nbsp;**Mine Production** |  |  |  |  |  |
| &nbsp;&nbsp;**Tonnes Mined** | &nbsp;&nbsp;(DMT) | &nbsp;&nbsp;300000 | &nbsp;&nbsp;300000 | &nbsp;&nbsp;300000 | &nbsp;&nbsp;133512 |
| &nbsp;&nbsp;**Tonnes Processed** | &nbsp;&nbsp;(DMT) | &nbsp;&nbsp;300000 | &nbsp;&nbsp;300000 | &nbsp;&nbsp;300000 | &nbsp;&nbsp;133512 |
| &nbsp;&nbsp;**Head Grades** |  |  |  |  |  |
| &nbsp;&nbsp;Zinc | &nbsp;&nbsp;(%) | &nbsp;&nbsp;9.18 | &nbsp;&nbsp;9.18 | &nbsp;&nbsp;9.18 | &nbsp;&nbsp;9.18 |
| &nbsp;&nbsp;Lead | &nbsp;&nbsp;(%) | &nbsp;&nbsp;1.90 | &nbsp;&nbsp;1.90 | &nbsp;&nbsp;1.90 | &nbsp;&nbsp;1.90 |
| &nbsp;&nbsp;Silver | &nbsp;&nbsp;g/t | &nbsp;&nbsp;193 | &nbsp;&nbsp;193 | &nbsp;&nbsp;193 | &nbsp;&nbsp;193 |

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Source: Santacruz (2023)

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Metallurgical recoveries and concentrate qualities are actual for the times and head grades that were actually mined. These parameters will necessarily be conservative considering the higher grades in the production schedule.

**Table 22-2: Production Forecast - Concentrate**

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|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Unit** | &nbsp;&nbsp;**2023** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2026** |
| &nbsp;&nbsp;**Concentrates** |  |  |  |  |  |
| &nbsp;&nbsp;Zinc | &nbsp;&nbsp;(DMT) | &nbsp;&nbsp;50298 | &nbsp;&nbsp;50298 | &nbsp;&nbsp;50298 | &nbsp;&nbsp;22384 |
| &nbsp;&nbsp;Zn Conc. Grade | &nbsp;&nbsp;(%) | &nbsp;&nbsp;50 | &nbsp;&nbsp;50 | &nbsp;&nbsp;50 | &nbsp;&nbsp;50 |
| &nbsp;&nbsp;Ag (in Zinc) | &nbsp;&nbsp;g/t | &nbsp;&nbsp;218 | &nbsp;&nbsp;218 | &nbsp;&nbsp;218 | &nbsp;&nbsp;218 |
| &nbsp;&nbsp;Zn Recovery | &nbsp;&nbsp;(%) | &nbsp;&nbsp;92 | &nbsp;&nbsp;92 | &nbsp;&nbsp;92 | &nbsp;&nbsp;92 |
| &nbsp;&nbsp;Ag (in Zinc) | &nbsp;&nbsp;(%) | &nbsp;&nbsp;19 | &nbsp;&nbsp;19 | &nbsp;&nbsp;19 | &nbsp;&nbsp;19 |
| &nbsp;&nbsp;Lead | &nbsp;&nbsp;(DMT) | &nbsp;&nbsp;7531 | &nbsp;&nbsp;7531 | &nbsp;&nbsp;7531 | &nbsp;&nbsp;3352 |
| &nbsp;&nbsp;Pb Conc. Grade | &nbsp;&nbsp;(%) | &nbsp;&nbsp;58 | &nbsp;&nbsp;58 | &nbsp;&nbsp;58 | &nbsp;&nbsp;58 |
| &nbsp;&nbsp;Ag (in lead) | &nbsp;&nbsp;g/t | &nbsp;&nbsp;5482 | &nbsp;&nbsp;5482 | &nbsp;&nbsp;5482 | &nbsp;&nbsp;5482 |
| &nbsp;&nbsp;Pb Recovery | &nbsp;&nbsp;(%) | &nbsp;&nbsp;77 | &nbsp;&nbsp;77 | &nbsp;&nbsp;77 | &nbsp;&nbsp;77 |
| &nbsp;&nbsp;Ag (in Lead) | &nbsp;&nbsp;(%) | &nbsp;&nbsp;72 | &nbsp;&nbsp;72 | &nbsp;&nbsp;72 | &nbsp;&nbsp;72 |
| &nbsp;&nbsp;**Metal Recovery** |  |  |  |  |  |
| &nbsp;&nbsp;Zinc | &nbsp;&nbsp;(FMT) | &nbsp;&nbsp;25000 | &nbsp;&nbsp;25000 | &nbsp;&nbsp;25000 | &nbsp;&nbsp;11000 |
| &nbsp;&nbsp;Silver (in Zinc) | &nbsp;&nbsp;(FOT) | &nbsp;&nbsp;353000 | &nbsp;&nbsp;353000 | &nbsp;&nbsp;353000 | &nbsp;&nbsp;157000 |
| &nbsp;&nbsp;Lead | &nbsp;&nbsp;(FMT) | &nbsp;&nbsp;4000 | &nbsp;&nbsp;4000 | &nbsp;&nbsp;4000 | &nbsp;&nbsp;2000 |
| &nbsp;&nbsp;Silver (in Lead) | &nbsp;&nbsp;(FOT) | &nbsp;&nbsp;1330000 | &nbsp;&nbsp;1330000 | &nbsp;&nbsp;1330000 | &nbsp;&nbsp;592000 |
| &nbsp;&nbsp;Silver (Total) | &nbsp;&nbsp;(FOT) | &nbsp;&nbsp;1683000 | &nbsp;&nbsp;1683000 | &nbsp;&nbsp;1683000 | &nbsp;&nbsp;749000 |

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Notes:

FMT = Fine Metric Tonnes; DMT = Dry Metric Tonnes; FOT = Fine Ounces Troy

Source: Santacruz (2023)

That same logic follows to the net revenue generation (Table 22-3) which includes smelter charges and penalty fees.

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**Table 22-3: Revenue and Cost Projection ($M)**

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|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Unit** | &nbsp;&nbsp;**2023** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2026** |
| &nbsp;&nbsp;**Payable Metal Revenue** |  |  |  |  |  |
| &nbsp;&nbsp;Zinc |  | &nbsp;&nbsp;64 | &nbsp;&nbsp;64 | &nbsp;&nbsp;64 | &nbsp;&nbsp;29 |
| &nbsp;&nbsp;Metallurgical Deduction |  | &nbsp;&nbsp;10 | &nbsp;&nbsp;10 | &nbsp;&nbsp;10 | &nbsp;&nbsp;5 |
| &nbsp;&nbsp;**Gross Payable Zinc** |  | &nbsp;&nbsp;54 | &nbsp;&nbsp;54 | &nbsp;&nbsp;54 | &nbsp;&nbsp;24 |
| &nbsp;&nbsp;Lead |  | &nbsp;&nbsp;10 | &nbsp;&nbsp;10 | &nbsp;&nbsp;10 | &nbsp;&nbsp;4 |
| &nbsp;&nbsp;Metallurgical Deduction |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;**Gross Payable Lead** |  | &nbsp;&nbsp;9 | &nbsp;&nbsp;9 | &nbsp;&nbsp;9 | &nbsp;&nbsp;4 |
| &nbsp;&nbsp;Silver |  | &nbsp;&nbsp;35 | &nbsp;&nbsp;35 | &nbsp;&nbsp;35 | &nbsp;&nbsp;16 |
| &nbsp;&nbsp;Metallurgical Deduction in Zinc | &nbsp;&nbsp;Metallurgical Deduction in Zinc | &nbsp;&nbsp;4 | &nbsp;&nbsp;4 | &nbsp;&nbsp;4 | &nbsp;&nbsp;4 |
| &nbsp;&nbsp;Metallurgical Deduction in Lead | &nbsp;&nbsp;Metallurgical Deduction in Lead | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 |
| &nbsp;&nbsp;**Gross Payable Silver** |  | &nbsp;&nbsp;30 | &nbsp;&nbsp;30 | &nbsp;&nbsp;30 | &nbsp;&nbsp;13 |
| &nbsp;&nbsp;**Gross Revenue (Total)** |  | &nbsp;&nbsp;93 | &nbsp;&nbsp;93 | &nbsp;&nbsp;93 | &nbsp;&nbsp;41 |
| &nbsp;&nbsp;**Smelter Charges and Penalties** | &nbsp;&nbsp;**Smelter Charges and Penalties** |  |  |  |  |
| &nbsp;&nbsp;Treatment charges Zn | &nbsp;&nbsp;(USD/t) | &nbsp;&nbsp;277 | &nbsp;&nbsp;277 | &nbsp;&nbsp;277 | &nbsp;&nbsp;277 |
| &nbsp;&nbsp;Treatment charges Zn |  | &nbsp;&nbsp;14 | &nbsp;&nbsp;14 | &nbsp;&nbsp;14 | &nbsp;&nbsp;6 |
| &nbsp;&nbsp;Treatment charges Pb | &nbsp;&nbsp;(USD/t) | &nbsp;&nbsp;133 | &nbsp;&nbsp;133 | &nbsp;&nbsp;133 | &nbsp;&nbsp;133 |
| &nbsp;&nbsp;Treatment charges Pb |  | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Penalties in Zn | &nbsp;&nbsp;(USD/t) | &nbsp;&nbsp;3 | &nbsp;&nbsp;3 | &nbsp;&nbsp;3 | &nbsp;&nbsp;3 |
| &nbsp;&nbsp;Penalties in Zn |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Penalties in Lead | &nbsp;&nbsp;(USD/t) | &nbsp;&nbsp;71 | &nbsp;&nbsp;71 | &nbsp;&nbsp;71 | &nbsp;&nbsp;71 |
| &nbsp;&nbsp;Penalties in Lead |  | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Refining Charges in Pb | &nbsp;&nbsp;(USD/FOZ) | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 |
| &nbsp;&nbsp;Refining Charges in Pb |  | &nbsp;&nbsp;2 | &nbsp;&nbsp;2 | &nbsp;&nbsp;2 | &nbsp;&nbsp;1 |
| &nbsp;&nbsp;**Smelter Fees and Penalties** | &nbsp;&nbsp;**Smelter Fees and Penalties** | &nbsp;&nbsp;**15** | &nbsp;&nbsp;17 | &nbsp;&nbsp;17 | &nbsp;&nbsp;17 |
| &nbsp;&nbsp;**Net Revenue** |  | &nbsp;&nbsp;277 | &nbsp;&nbsp;277 | &nbsp;&nbsp;277 | &nbsp;&nbsp;277 |
| &nbsp;&nbsp;**Operating Costs** |  |  |  |  |  |
| &nbsp;&nbsp;**Production Costs** |  | &nbsp;&nbsp;30 | &nbsp;&nbsp;30 | &nbsp;&nbsp;30 | &nbsp;&nbsp;14 |
| &nbsp;&nbsp;**Cost of Sales** |  |  |  |  |  |
| &nbsp;&nbsp;Rail Freight Zn |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Rail Freight Pb |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Port Expenses Zn |  | &nbsp;&nbsp;2 | &nbsp;&nbsp;2 | &nbsp;&nbsp;2 | &nbsp;&nbsp;1 |
| &nbsp;&nbsp;Port Expenses Pb |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Rollback Fee Zn |  | &nbsp;&nbsp;5 | &nbsp;&nbsp;5 | &nbsp;&nbsp;5 | &nbsp;&nbsp;2 |
| &nbsp;&nbsp;Rollback Fee Pb |  | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;**Concentrate Freight and Port Costs** | &nbsp;&nbsp;**Concentrate Freight and Port Costs** | &nbsp;&nbsp;**8** | &nbsp;&nbsp;8 | &nbsp;&nbsp;8 | &nbsp;&nbsp;8 |
| &nbsp;&nbsp;**Mine Royalty** |  | &nbsp;&nbsp;6 | &nbsp;&nbsp;6 | &nbsp;&nbsp;6 | &nbsp;&nbsp;3 |
| &nbsp;&nbsp;**Communities and Unions** |  | &nbsp;&nbsp;2 | &nbsp;&nbsp;2 | &nbsp;&nbsp;2 | &nbsp;&nbsp;1 |
| &nbsp;&nbsp;**Selling Costs** |  | &nbsp;&nbsp;16 | &nbsp;&nbsp;16 | &nbsp;&nbsp;16 | &nbsp;&nbsp;7 |
| &nbsp;&nbsp;**Total Cost of Sales** |  | &nbsp;&nbsp;46 | &nbsp;&nbsp;46 | &nbsp;&nbsp;46 | &nbsp;&nbsp;21 |

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Source: Santacruz (2023)

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Depreciation is a product of previous operation and annual capital expenditure incurred for the exploitation of the reserve tonnage. Capital is limited to that required to support mining, processing, and tailing storage for the reserve. Corporate G&A is that part of the in-country costs allocated to the Caballo Blanco mine.

**Table 22-4: Cashflow Projection ($M)**

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|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**2023** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2026** |
| &nbsp;&nbsp;**Income Statement** |  |  |  |  |
| &nbsp;&nbsp;Net Revenue | &nbsp;&nbsp;76 | &nbsp;&nbsp;76 | &nbsp;&nbsp;76 | &nbsp;&nbsp;34 |
| &nbsp;&nbsp;Production Costs | &nbsp;&nbsp;-30 | &nbsp;&nbsp;-30 | &nbsp;&nbsp;-30 | &nbsp;&nbsp;-14 |
| &nbsp;&nbsp;Selling Costs | &nbsp;&nbsp;-16 | &nbsp;&nbsp;-16 | &nbsp;&nbsp;-16 | &nbsp;&nbsp;-7 |
| &nbsp;&nbsp;Depreciation | &nbsp;&nbsp;-10 | &nbsp;&nbsp;-9 | &nbsp;&nbsp;-9 | &nbsp;&nbsp;-11 |
| &nbsp;&nbsp;**Gross Profit** | &nbsp;&nbsp;19 | &nbsp;&nbsp;20 | &nbsp;&nbsp;21 | &nbsp;&nbsp;2 |
| &nbsp;&nbsp;Corporate G&A | &nbsp;&nbsp;-3 | &nbsp;&nbsp;-4 | &nbsp;&nbsp;-4 | &nbsp;&nbsp;-2 |
| &nbsp;&nbsp;**Operating Profit** | &nbsp;&nbsp;16 | &nbsp;&nbsp;16 | &nbsp;&nbsp;17 | &nbsp;&nbsp;0 |
| &nbsp;&nbsp;**EBIT** | &nbsp;&nbsp;16 | &nbsp;&nbsp;16 | &nbsp;&nbsp;17 | &nbsp;&nbsp;0 |
| &nbsp;&nbsp;Income Tax Expense (CIT) | &nbsp;&nbsp;-6 | &nbsp;&nbsp;-6 | &nbsp;&nbsp;-6 | &nbsp;&nbsp;0 |
| &nbsp;&nbsp;**Net Gain/(Loss) for the Year** | &nbsp;&nbsp;10 | &nbsp;&nbsp;10 | &nbsp;&nbsp;10 | &nbsp;&nbsp;0 |
| &nbsp;&nbsp;**Cashflow Statement** |  |  |  |  |
| &nbsp;&nbsp;**Cash from Operations Activities** |  |  |  |  |
| &nbsp;&nbsp;Net Income | &nbsp;&nbsp;10 | &nbsp;&nbsp;10 | &nbsp;&nbsp;10 | &nbsp;&nbsp;0 |
| &nbsp;&nbsp;Depreciation | &nbsp;&nbsp;10 | &nbsp;&nbsp;9 | &nbsp;&nbsp;9 | &nbsp;&nbsp;11 |
| &nbsp;&nbsp;**Subtotal** | &nbsp;&nbsp;20 | &nbsp;&nbsp;19 | &nbsp;&nbsp;19 | &nbsp;&nbsp;11 |
| &nbsp;&nbsp;**Cash from Investing Activities** |  |  |  |  |
| &nbsp;&nbsp;Sustaining Capital Expenditure | &nbsp;&nbsp;-9 | &nbsp;&nbsp;-13 | &nbsp;&nbsp;-7 | &nbsp;&nbsp;0 |
| &nbsp;&nbsp;**Subtotal** | &nbsp;&nbsp;-9 | &nbsp;&nbsp;-13 | &nbsp;&nbsp;-7 | &nbsp;&nbsp;0 |
| &nbsp;&nbsp;**Cash Balance** |  |  |  |  |
| &nbsp;&nbsp;Beginning | &nbsp;&nbsp;0 | &nbsp;&nbsp;11 | &nbsp;&nbsp;17 | &nbsp;&nbsp;29 |
| &nbsp;&nbsp;Change in Cash | &nbsp;&nbsp;11 | &nbsp;&nbsp;6 | &nbsp;&nbsp;12 | &nbsp;&nbsp;11 |
| &nbsp;&nbsp;**Ending** | &nbsp;&nbsp;**11** | &nbsp;&nbsp;**17** | &nbsp;&nbsp;**29** | &nbsp;&nbsp;**40** |

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Source: Santacruz (2023)

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Income Tax is 37.5% of the EBIT. As seen, the operations generate a positive cash flow after tax upon exploitation of the stated reserve at the metal prices used to generate the reserve.

22.2 Sensitivities

A univariate sensitivity analysis was performed to examine which factors most affect the Project economics when acting independently of all other cost and revenue factors. Each variable evaluated was tested using the same percentage range of variation, from -20% to +20%, although some variables may experience significantly larger or smaller percentage fluctuations over the LOM. For instance, the metal prices were evaluated at a ±20% range to the base case, while the capex and all other variables remained constant. This may not be truly representative of market scenarios, as metal prices may not fluctuate in a similar trend. The variables examined in this analysis are those commonly considered in similar studies – their selection for examination does not reflect any particular uncertainty.

Notwithstanding the above noted limitations to the sensitivity analysis, which are common to studies of this sort, the analysis revealed that the Project is most sensitive to metal pricing. The Project showed the least sensitivity to capital costs. Figure 22-1 shows the results of the sensitivity analysis.

**Figure 22-1: Univariate Sensitivities**

![](ex99-28_156.jpg)

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23 Adjacent Properties

There are no adjacent properties to any of the Caballo Blanco mining operations.

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24 Other Relevant Data and Information

Mining has been ongoing since the effective date of this report through 2023 and into 2024. Total mining in 2023 was 316,718 t at a grade of 166 g/t Ag, 1.32% Pb, and 6.92% Zn, resulting in the production of 1.54 Moz of Ag, 3,237 t of Pb, and 20,335 t of Zn.

This production cannot simply be subtracted from the January 1, 2023, resource or reserve estimates contained in this report, however. As described previously, reserves and resources are adjusted as the mining progresses based on development along vein and associated sampling. These adjustments can be significant, and the geologic block model is updated to account for this new information. The operations team at Caballo Blanco uses the considerable modelling tools and methods at their disposal to incorporate these operational updates to guide their mine planning.

The January 1, 2023 Reserves statement is based on a fixed model. However, block model updates are generated for annual budgeting and forecasting. These updates incorporate projected operating costs, updated block grades and NSR factors as applicable.

A significant amount of the 2023 production came from blocks that were not included in the stated January 1, 2023 reserves.

However, actual dilution was higher than estimated in the January 1, 2023 reserves. Actual dilution in the Sublevel open stopes was 20.7% compared to an estimate of 12.5%. In the avoca stopes, actual dilution was 16.2% compared to an estimate of 10%.

This ongoing estimation process provides a good mine planning guide as well as an accurate empirical tool for reconciliation. A direct reconciliation with the January 1, 2023 Reserve and Resource blocks stated in this report shows that:

● 56% of the mined mineralized production for 2023 originated from the Proven and Probable reserves;

● 38% of mined mineralized production for 2023 originated from Measured, Indicated, and inferred Resources outside of the reserve base, which were converted into reserves as mining progressed; and

● 6% of mined mineralized production for 2023 originated from the increased external dilution.

This analysis provides a good indication of the reserve drawdown and continuous level of replenishment resulting from normal operations in identified and active mineralized veins.

Details of the 2023 production and economic results are included in Santacruz's MD&A filing.

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25 Interpretations and Conclusions

25.1 Observations

The Caballo Blanco Project is located in the Cordillera de los Azanaques, forming the western edge of the Cordillera Oriental, which is detached from the Cordillera de los Frailes, belonging to the group of central mountain ranges. Characterized by the essence of undulating plateaus, outstanding mountains parallel to the course of the Andes, with elevations that vary between 3,400 and 4,600 masl. The area is part of the polymetallic belt of the altiplano and the Cordillera Occidental.

The most important ore deposits of the Eastern Cordillera are polymetallic hydrothermal deposits mined principally for Sn, W, Ag and Zn, with sub-product Pb, Cu, Bi, Au and Sb. They are related to stocks, domes and volcanic rocks of Middle and Late Miocene age (22 to 4 Ma). Mineralization occurs in veins, fracture swarms, disseminations and breccias. The deposits of the Eastern Cordillera are epithermal vein and disseminated systems of Au, Ag, Pb, Sb, as that have been telescoped on to higher temperature mesothermal Sn-W veins and, in some cases, porphyry Sn deposits. The telescoping is a characteristic of these deposits and is the result of collapse of the hydrothermal systems, with lower temperature fluids overprinting higher temperature mineralization. The systems show a fluid evolution from a high temperature, low sulphidation state to intermediate sulphidation epithermal and high sulphidation epithermal.

The Caballo Blanco Project is an "advanced property" and has been in continuous production since 1993. Glencore and subsequently Santacruz Silver has performed exploration and resource expansion drilling of surface and underground drillholes at the Caballo Blanco since 2010 totalling 39,562.55 m. The 128 drillholes and 19,644 underground channels in the database were supplied in electronic format by Santacruz. This included collars, downhole surveys, lithology data and assay data (i.e., Ag g/t, Pb%, Zn%, Fe%, Sn%).

Verification of the Caballo Blanco drillhole and underground sample assay databases are primarily focused on silver, lead and zinc in addition to iron, arsenic, sulphur and tin. Sample databases were supplied in Excel<sup>TM</sup> format and in LeapFrog<sup>TM</sup>. Checks against source data and assay certificates showed agreement. Statistical analyses used to investigate and identify errors were performed and resulted in minor issues. These have been corrected and it is recommended that a continued program of random "spot checking" the database against assay certificates be employed.

During the 2023 site visit, an extensive independent sampling verification plan was implemented with a total of 80 samples collected across from the Bolivar, Porco and Caballo Blanco operations. The Don Diego laboratory is an NB/ISO/IEC 17025:2018 accredited laboratory which performs all assay analyses for the mining and processing operations for Sinchi Wayra including Caballo Blanco. The Don Diego laboratory in owned and operated by the Issuer, Santacruz.

Results of the verification samples indicates that the regression predictions perfectly fit the data meaning that the check sampling program successfully verified and validated the data and although, these results are not a complete audit of the laboratory, they do verify that the assay results are suitable for resource estimation purposes.

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The geological and lithological solid domain models were supplied by Santacruz in both Datamine<sup>TM</sup> and LeapFrog<sup>TM</sup> which are both industry-leading software systems. The QP imported the multiple vein domains into a similar system called MineSight<sup>TM</sup> to verify solids volumes and ensure matching of the solids domains against the drillhole and sample database. Results confirmed location and extent of volumes are appropriate to resource estimation purposes.

Resource block models were supplied in Datamine<sup>TM</sup> format which is an industry recognized software system used for resource estimation. These models were then imported to MineSight<sup>TM</sup> for verification of the resource estimation. In addition, independent estimations were run using the verified sample data and vein domains employing inverse distance estimations to ensure reasonableness and verify the resources independently. Results illustrated good agreement between the original and verification models. Verification of the SG regression analysis was also performed by comparing measured versus calculated density values.

The mineral resources were estimated in conformity with CIM's "Estimation of Mineral Resources and Mineral Reserves Best Practices Guidelines" (December 2019) and are reported in accordance with NI 43-101 guidelines. The Qualified Person evaluated the resource in order to ensure that it meets the condition of "reasonable prospects of eventual economic extraction" as suggested under NI 43-101. The criteria considered were confidence, continuity and economic cut-off. The resource listed below is considered to have "reasonable prospects of eventual economic extraction".

Using a cut-off grade of 10.0% ZnEq, the Caballo Blanco operations resources are presented in Table 25-1.

**Table 25-1: Base-Case Total Mineral Resources at 10.0% ZnEq Cut-off**

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|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Total Caballo Blanco 2023 Mineral Resources** | &nbsp;&nbsp;**Total Caballo Blanco 2023 Mineral Resources** | &nbsp;&nbsp;**Total Caballo Blanco 2023 Mineral Resources** | &nbsp;&nbsp;**Total Caballo Blanco 2023 Mineral Resources** | &nbsp;&nbsp;**Total Caballo Blanco 2023 Mineral Resources** | &nbsp;&nbsp;**Total Caballo Blanco 2023 Mineral Resources** |
| &nbsp;&nbsp;**Mine** | &nbsp;&nbsp;**Category** | &nbsp;&nbsp;**Tonnes ('000)** | &nbsp;&nbsp;**Zn (%)** | &nbsp;&nbsp;**Pb (%)** | &nbsp;&nbsp;**Ag (g/t)** |
| &nbsp;&nbsp;**Caballo Blanco** | &nbsp;&nbsp;Measured | &nbsp;&nbsp;726 | &nbsp;&nbsp;15.96 | &nbsp;&nbsp;3.03 | &nbsp;&nbsp;321 |
| &nbsp;&nbsp;**Caballo Blanco** | &nbsp;&nbsp;Indicated | &nbsp;&nbsp;502 | &nbsp;&nbsp;14.32 | &nbsp;&nbsp;2.86 | &nbsp;&nbsp;269 |
| &nbsp;&nbsp;**Caballo Blanco** | &nbsp;&nbsp;**Total M+I** | &nbsp;&nbsp;**1227** | &nbsp;&nbsp;**15.29** | &nbsp;&nbsp;**2.96** | &nbsp;&nbsp;**300** |
| &nbsp;&nbsp;**Caballo Blanco** | &nbsp;&nbsp;**Inferred** | &nbsp;&nbsp;**2217** | &nbsp;&nbsp;**13.28** | &nbsp;&nbsp;**2.12** | &nbsp;&nbsp;**199** |

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Notes:

1) The current Resource Estimate was prepared by Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd.

2) All mineral resources have been estimated in accordance with CIM definitions, as required under NI43-101.

3) The Mineral Resource Estimate was prepared using a 10.0% zinc equivalent cut-off grade. Cut-off grades were derived from $25.20/oz silver, $1.38/lb zinc and $1.20/lb lead, and process recoveries of 92.1% for zinc, 77.2% for lead, and 90.8% for silver. This cut-off grade was based on current smelter agreements and total OPEX costs of $106.94/t based on 2022 actual costs plus capital costs of $42.33/t. All prices are stated in $USD.

4) An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

5) Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not account for a resource's mineability, selectivity, mining loss, or dilution. All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

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The QPs found that Caballo Blanco is a well-managed operation that should be capable of sustaining profitable operations for many years to come in the same fashion as it has operated for the past several years.

The reserves were found to be estimated correctly using industry-standard techniques and procedures and industry-standard software by diligent and competent professionals.

The mine has an ample provision of skilled workers. Typical and reasonable ore control systems were in place, but it is possible that the results could be improved with a closer attention to appropriate mining widths, minimizing them wherever possible to minimize dilution.

The availability and utilization statistics show that the mines are well equipped, but these statistics can sometimes be misleading depending on how the factors are calculated. Mine supervision sited equipment reliability as an impediment to achieving targets.

The processing plant appears to be well run as evidenced by a lack of spillage. The metallurgical team has a good understanding of the processing variable that determines how material will respond to the Don Diego processing facility.

25.2 Risks

Many risks exist which are common to most mining projects including operating and capital cost escalation, permitting and environmental compliance, unforeseen schedule delays, changes in regulatory requirements, ability to raise financing and metal price. Many of these ever-present risks can be mitigated with adequate engineering, planning and pro-active management. The most significant risks to this project and its continued development are related socio-economic and geo-political factors.

The Project also subject to site-specific risks, including the following:

● The activity that is prevalent throughout the region related to Cooperativas and artisanal miners may cause issues for access and for reasonable prospects of eventual economic extraction and may condemn or reduce resources and reserves in those areas. The Caballo Blanco mines are relatively isolated and not flanked by camps or towns. Attention to community relations has developed strong mutually beneficial working relationships with many of the local population and mining cooperatives which has created a sustained period of stable political and socio-economic cooperation. However, changes in this relationship and instability would pose a significant risk to continued operation of the mines in addition to risks related to tenure and ownership;

● The current political and socio-economic climate in Bolivia poses risks and uncertainties that could delay or even stop development as reported within the Fraser Institute Annual Report 2022 where Bolivia ranks very low in many non-technical metrics. Bolivia has been ranked consistently low for the past five years and ranks in the lower quartile on all metrics that gauge risk and uncertainty. It is difficult to gauge or qualify the level or extents of the risks however, all companies working in Bolivia must continue to be aware of the potential risks and develop mitigation strategies. A significant risk related to the Santacruz Bolivian mineral assets and in particular the mineral resources and mineral reserves is the significant artisanal activity that continues to exist. This activity is not only a socio-economic risk but also affects access to resources and reserves along with potential sterilization of mineral resources;

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● Geological interpretations may be subjective and may result in the location and extent of some of the mineralized structure although as the Caballo Blanco mines are comprised of well constrained veins, this risk is minimal;

● As vein thicknesses are narrow, resources may be sensitive to dilution although the relative high grades that exist at the Caballo Blanco mines are successful mitigating such risks to date;

● Varying resource classification methods and criteria may vary as more data is considered;

● There is no guarantee that further drilling will result in additional resources or increased classification;

● Further work may disprove previous models and therefore result in condemnation of targets and potential negative economic outcomes;

● Lower commodity prices could change the size and grade of the potential targets;

● Ability to replace mined reserves on an annual basis; and

● Maintenance of permitting.

 

As the mines continues to expand to depth, the following aspects of mine operations will be challenged:

● Worker travel time (reduced time at the face);

● Dewatering inflow quantities, infrastructure and costs;

● Ventilation system needs and costs;

● This will be particularly felt in Colquechaquita, as it is a shaft access mine with most of its remaining reserve at depth. The shaft will ultimately require extension to depth or trackless equipment will be required to haul the ore to the shaft bottom;

● Supply and delivery of backfill was observed to be behind schedule which could have been caused by low development production, haulage bottlenecks, etc. The outcome, however, increases risk of hanging wall failure in the stopes and ore dilution from over-mucking;

● The process plant is not located on site, so ore transport costs can be significant and factors such as dilution have a greater impact on mineralized material value; and

● As is shown on Figure 22-1, the greatest risk to the economic results in this study is from changes to metal prices.

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25.3 Opportunities

Project opportunities include:

● The primary opportunity to the mine is to improve the grade to the mill by focusing on mine dilution. As is typical with all narrow width mining, dilution is very sensitive to the mined widths of veins, which must be kept at minimum to accommodate equipment widths. Often veins are over-mined to ensure complete recovery of the ore. This practice significantly increases dilution due to overbreak of the hangingwall and footwall;

● The mines would all benefit from more diamond drilling, particularly the Tres Amigos with is long strike length and little lateral development;

● A systematic exploration program could provide an excellent opportunity for successfully uncovering new discoveries;

● An increased understanding and derivation of alternative theories may result in further discovery and expansion for the Project;

● A hydrogeological study could help the operation to better characterize and understand water inflows, aiding design work and planning to reduce the impact of major seasonal inflows;

● Higher commodity prices could change the size and grade of the potential targets; and

● Potential for expansion and classification upgrade of resources as mining activities progress.

Caballo Blanco group of mines is firmly established as a producing property but has yet to be consolidated into a fully integrated mine. Each mine is independently managed and operated and there are very few, if any, shared services. All three mines are on the same mineralized trend and consolidation is a possibility.

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26 Recommendations

To advance the Caballo Blanco mining operation and further evaluate the potential additional veins and increase resources thereby displacing depletion due to ongoing mining activities, the following is recommended:

● Regional exploration for identification of new veins;

● Incorporate structural interpretations to assist regional understanding;

● QA/QC program review and improvement;

● Investigate source of anomalous lead values experienced with the field blanks;

● Incorporation of externally certified blanks and standards into the QA/QC program;

● Insertion of QA/QC samples throughout at a rate of 1 in 20 for blanks, standards and duplicates;

● On-going verification of assay by way of umpire laboratory analysis which may include cross-validation with the company's Mexico laboratory at Zimapan;

● Analysis of thickness and grade-thickness profiles for resource targeting and predictive dilution study;

● Hydrogeological study and modelling should be done to better understand water inflows and minimize their impact on production;

● Plan and execute a resource expansion program including drilling and underground sampling to fully identify and upgrade resources proximal to active mining areas for inclusion in the 2-year mine plan. This is important so that existing mine development can be fully utilized, and reductions in mine development requirements and rate of vertical descent realized;

● Resource drilling to justify more integrated mine development is also important for stable long-term production and growth. Moving the properties toward a more integrated operation can add value to the project;

● Extensive surface drilling for near surface targets along with underground drilling for resource delineation and extension;

● As is typical with all narrow width mining, dilution is very sensitive to the mined widths of veins. Good work is being done on identifying and qualifying specific stope dilution. Analysis and incorporation of findings into the stope planning and mine operations is an opportunity to increase project value; Often veins are over-mined to ensure complete recovery, but this practice comes with significantly increased dilution due to overbreak of the hangingwall and footwall. The operation should conduct a thorough test stoping experiment to ensure the most economic balance between incomplete recovery and excessive dilution;

 

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 26-1

 

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● Underground operations that use three x 8 hour shifts typically lose much worker productivity due to excessive travel and break time over such a short shift. The current operation has an effective time of 5.5 hours per worker on an 8-hour shift. Consideration should be given to test a longer shift, say a schedule of 4 x 10 hours per week with three days off. With the same 2.5 hours of travel and break time, the effective time would increase to 7.5 hours per shift, resulting in an increase from 68% to 75% shift effectiveness or actual working time. The workers are apt to find that the longer days are harder, but that the three days off provide more rest on the balance of the week;

 

● The methodology for calculating equipment and utilization factors should be reviewed and adjusted if necessary. If equipment availability is, in fact, impeding production as was reported by supervision, it is not currently reflected in these statistics;

 

● Devote attention to optimizing material transport. Transport of waste rock is critical to stope productivity and stability with the mining methods being used, thus its supply and transport are critical to mine production;

● The possibility for ore sorting or should be evaluated. As the mines each have a considerable haulage distance for run-of-mine ore, reducing the quantity to reduce haulage costs could be economically beneficial. On site crushing may be required to conduct sorting, however, offsetting or exceeding the savings it would provide to the trucking costs;

 

● At Don Diego Plant, the period analyzed from August 2020 to July 2021 exhibited more downtime than planned. Investigate opportunities to raise Process Plant throughput and reduce downtime to improve project economics;

● Metallurgical testwork to investigate opportunities to increase recoveries, through grinding, reagent dosage or newer flotation technologies;

● Investigate geo-metallurgical characteristics of the feed;

● The operation should continue to maintain diligent accounting centers to determine each mine's profitability and, if necessary, shift resources or assets to maximize profits; and

 

● Continue open communication and fair business practices with mining cooperatives and surrounding communities to minimize risk of asset subjugation.

These recommendations have not been costed, as they represent changes to current practices that can be funded by existing operating budgets.

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27 References

*2019 Sustainability Report* – Sinchi Wayra S.A. Illapa S.A. – used as the basis for section 14

*2020 Sustainability Report* – Sinchi Wayra S.A. Illapa S.A. – used as the basis for section 14

Ahlfeld, F.E. & Schneider-Scherbina, A., 1964. *Los yacimientos minerales y de hidrocarburos de Bolivia*. Departamento Nacional de Geología (Bolivia) Boletín 5 (Especial), 388 p.

Arce Burgoa, O.R., 2009. *Metalliferous Ore Deposits of Bolivia* p. 45-47.

Barrios, Enrique, Dentons Guevara & Gutierrez S.C., 18 March 2022 "Local Counsel Legal Opinion on the Porco Mine"

Barrios, Enrique, Dentons Guevara & Gutierrez S.C., 18 March "Local Counsel Legal Opinion on the Caballo Blanco Project",

Barrios, Enrique, Dentons Guevara & Gutierrez S.C., 18 March 2022 "Local Counsel Legal Opinion on Empresa Minera San Lucas S.A."

Barrios, Enrique, Dentons Guevara & Gutierrez S.C., 18 March 2022 "Local Counsel Legal Opinion on Sociedad Minero Metalúrgica Reserva Ltda."

Barrios, Enrique, Dentons Guevara & Gutierrez S.C., 18 March 2022 "Local Counsel Legal Opinion on Sociedad Minera Illapa S.A."

Barrios, Enrique, Dentons Guevara & Gutierrez S.C., 18 March 2022 "Local Counsel Legal Opinion on Sinchi Wayra S.A."

Barrios, Enrique, Dentons Guevara & Gutierrez S.C., 18 March 2022 "Local Counsel Legal Opinion on the Illapa Joint Venture"

Cunningham, C. G., Aparicio, H., Murillo, F., Jimenez, N., Lizeca, J. L., Ericksen, G. E. & Tavera, F., 1993. The Porco, Bolivia, Ag-Zn-Pb-Sn deposit is along the ring fracture of the newly recognized Porco caldera. *GSA Abstracts with Programs*, Vol. 25, No. 5, p. 26.

Cunningham, C. G., Aparicio, H., Murillo, F., Jiménez, N., Lizeca, J. L., McKee, E. H., Ericksen, G. E. & Tavera, F., 1994a. The relationship between the Porco, Bolivia, Ag-Zn-Pb-Sn Deposit and the Porco Caldera. *U.S. Geological Survey, Open-File Report* 94-238, 19 p.

Cunningham, C. G., Aparicio, H., Murillo, F., Jiménez, N., Lizeca, J. L., McKee, E. H., Ericksen, G. E. & Tavera, F., 1994b. Relationship between the Porco, Bolivia, Ag-Zn-Pb-Sn Deposit and the Porco Caldera. *Economic Geology*, Vol. 89, p. 1833-1841.

Cunningham, C.G., Zartman, R.E., McKee, E.H., Rye, R.O., Naeser, C.W., Sanjines, V.O., Ericksen, G.E. and Tavera, V.F., 1996. The age and thermal history of Cerro Rico de Potosi, Bolivia. *Mineralium Deposita*, v. 31, p. 374-385.

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Demoulin Black – provided legal description of the financial transaction between Santacruz Silver Mining Ltd and Glencore Plc. – Used in Section 2

Encyclopedia Britannica – *Bolivian Mining History* used in section 6.1

Francis, P.W., Baker, M.C.W. & Halls, C., 1981. The Kari caldera, Bolivia, and the Cerro Rico stock. *Journal of Volcanology and Geothermal Research*, v. 10, p. 113-124.

Glencore – *HSEC Assurance Report – Verification 3 Assessment – Zinc, Sinchi Wayra, Bolivia Tailing Storage Facilities*, December 2020 – Klohn Crippen Berger. – TSF description and condition section 5.3

Glencore – *Management Presentation Silver Belt Bolivia March/April 2021* –, Mining section diagrams and general material movement. Sections 5, 6

Jiménez, N., Sanjinés, O., Cunningham, Ch., Lizeca, J.L., Aparicio, H., McKee, E., Tavera, F. & Ericksen, G., 1998, La Caldera resurgente de Porco y su relación con la mineralización de Ag-Zn-Pb. *Memorias del XI Congreso Geológico de Bolivia*, Tarija, p.132-146.

Kato, J. J., 2013. Geochemistry of the Neogene Los Frailes Ignimbrite Complex on the Central Andean Altiplano Plateau. Unpublished MSc thesis, Cornell University, xiv + 173 p.

Kato, J. J., Kay, S. M., Coira, B. L., Jicha, B. R., Harris, C., Caffe, P. J. & Jimenez, N., 2014. Evolution and Geochemistry of the Neogene Los Frailes Ignimbrite Complex on the Bolivian Altiplano Plateau. *XIX Congreso Geológico Argentino*, Córdoba, Argentina, June 2014, abstract S24-3-6.

Kay, S. M., Kato, J. J., Coira, B. L. & Jimenez, N., 2018. Isotopic and Geochemical Signals of the Neogene Los Frailes Volcanic Complex as Recorders of Delamination and Lower Crustal Flow under the Southern Altiplano of the Central Andes. *11th South American Symposium on Isotope Geology*, Cochabamba, Bolivia, 22-25 July 2018, abstract.

Ludington, S., Orris, G.J., Cox, D.P., Long, K.R. & Asher-Bolinder, S., 1992. Mineral deposit models. In USGS-Geobol, Geology and Mineral Resources of the Altiplano and Cordillera Occidental, Bolivia. *USGS Bulletin* 1975, p. 63-89.

*Presentación Caballo Blanco March 2020 – Microsoft PowerPoint - Presented by Mr. Olaf Meijer – Mine overview.* Section 6

*Production Reports 2021* – Microsoft Excel Worksheet (.xlsx) provided by Mr Grover Ignacio – updates for all plant production 1 year rolling, through July 2021 – Section 6.3

Redwood, S. D., 1993. *The Metallogeny of the Bolivian Andes*. Mineral Research Unit, Short Course No. 15. UBC, Vancouver, B.C., Canada, 59 p.

Rice, C.M., Steele, G.B., Barfod, D., Boyce, A.J., and Pringle, M.S., 2005. Duration of magmatic, hydrothermal and supergene activity at Cerro Rico de Potosi, Bolivia. *Economic Geology*, v. 100, p. 1647-1656.

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Schneider, A., 1985. Eruptive processes, mineralization and isotopic evolution of the Los Frailes Kari Region, Bolivia. Unpublished Ph.D. thesis, Royal School of Mines, Imperial College, University of London, London, 290p.

Schneider, A., 1987. Eruptive processes, mineralization and isotopic evolution of the Los Frailes-Kari Kari region, Bolivia. *Revista Geológica de Chile*, v. 30, p. 27-33.

Schneider, A., & Halls, C., 1985. Chronology of eruptive processes and mineralization of the Frailes - Kari volcanic field, Eastern Cordillera, Bolivia. *Comunicaciones*, Departamento de Geología, University of Chile, Santiago, v. 35, p. 217-224.

Sillitoe, R. H., Halls, C. & Grant, J. N., 1975. Porphyry tin deposits in Bolivia. *Economic Geology*, Vol. 70, p. 913-927.

*Summary of Mobile Mining Equipment* - Aug 2021 - Microsoft Excel Worksheet (.xlsx) – Provided by Olaf Miejer. Lists mine mobile Production equipment for all subject mines with make, model, model year, operational hours. Used in Mining section 6.2 and as the basis for tables 6-1,6-2,6-3.

Sugaki, A., Ueno, H., Shimada, N., Kitakaze, A., Hayashi, K., Shima, H., Sanjines, O. & Saavedra, A., 1981a. Geological study on polymetallic ore deposits in the Oruro district, Bolivia. *Science Reports of the Tohoku University*, Series III, Vol. 15, p. 1-52.

Sugaki, A., Ueno, H. & Saavedra, A., 1981b. Mineralization and Mineral Zoning in the Avicaya and Bolivar Mining District, Bolivia. *Science Reports of the Tohoku University*, Series III, Vol. 15, p. 53-64.

Sugaki, A., Ueno, H., Shimada, N., Kusachi, I., Kitakaze, A., Hayashi, K., Kojima, S. & Sanjines, O., 1983. *Geological study on the polymetallic ore deposits in the Potosi district, Bolivia*. Science Reports of the Tohoku University, Series III, Vol. 15, p. 409-460.

Sugaki, A., Shimada, N., Ueno, H. & Kano, S., 2003. K-Ar Ages of Tin-Polymetallic Mineralization in the Oruro Mining District, Central Bolivian Tin Belt. *Resource Geology*, Vol. 53, p. 273-282.

Zartman, R.E., & Cunningham, C.G., 1995. U-Th-Pb zircon dating of the 13.8 Ma dacite volcanic dome at Cerro Rico de Potosi, Bolivia. Earth and Planetary Science Letters, v. 133, p. 227-237.

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28 Units of Measure, Abbreviations, Acronyms, and Glossary of Spanish Terms

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| &nbsp;&nbsp;**Symbol / Abbreviation** | &nbsp;&nbsp;**Description** |
| ° | &nbsp;&nbsp;degree |
| $| &nbsp;&nbsp;United States Dollars |
| $M | &nbsp;&nbsp;One Million United States Dollars |
| °C | &nbsp;&nbsp;degrees Celsius |
| μm | &nbsp;&nbsp;micrometres |
| 3D | &nbsp;&nbsp;three-dimensions |
| a | &nbsp;&nbsp;annum (year) |
| ACAD | &nbsp;&nbsp;AutoCAD<sup>TM</sup>, a commercially produced design software by Autodesk |
| Ag | &nbsp;&nbsp;silver |
| amsl | &nbsp;&nbsp;above mean sea level |
| Au | &nbsp;&nbsp;gold |
| Bi | &nbsp;&nbsp;bismuth |
| Ca | &nbsp;&nbsp;calcium |
| CAPEX | &nbsp;&nbsp;Capital expense |
| cfm | &nbsp;&nbsp;cubic feet per minute |
| CIM | &nbsp;&nbsp;Canadian Institute of Mining, Metallurgy and Petroleum |
| cm | &nbsp;&nbsp;centimetre |
| cm<sup>2</sup> | &nbsp;&nbsp;square centimetre |
| cm<sup>3</sup> | &nbsp;&nbsp;cubic centimetre |
| CIBC | &nbsp;&nbsp;Canadian Imperial Bank of Commerce |
| CIT | &nbsp;&nbsp;Corporate income tax |
| COMIBOL | &nbsp;&nbsp;Bolivian Government owned mining company; joint venture partner to Santacruz through the Illapa JV |
| CQA | &nbsp;&nbsp;Quality Assurance (for tailings disposal) |
| CQC | &nbsp;&nbsp;Quality control management (for tailings disposal) |
| Cu | &nbsp;&nbsp;copper |
| CV | &nbsp;&nbsp;Coefficient of Variation |
| DAA | &nbsp;&nbsp;Declaration of Environmental Adequacy |
| DMT | &nbsp;&nbsp;Dry metric tonnes |
| E | &nbsp;&nbsp;East |
| EBIT | &nbsp;&nbsp;Earnings before interest and taxes |
| EIA | &nbsp;&nbsp;Environmental Impact Assessment |
| ENDE | &nbsp;&nbsp;National Electricity Company (Bolivia) |

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| &nbsp;&nbsp;**Symbol / <br> Abbreviation** | &nbsp;&nbsp;**Description** |

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|:---|:---|
| ft<sup>3</sup> | &nbsp;&nbsp;cubic foot |
| g | &nbsp;&nbsp;gram |
| G&A | &nbsp;&nbsp;general and administrative |
| g/t | &nbsp;&nbsp;grams per tonne |
| hp | &nbsp;&nbsp;horsepower |
| HSEC | &nbsp;&nbsp;health, safety, environment and community |
| IDW | &nbsp;&nbsp;Inverse distance weighting |
| JDS | &nbsp;&nbsp;JDS Energy & Mining Inc. |
| JORC | &nbsp;&nbsp;Australasian Joint Ore Reserves Committee |
| JV | &nbsp;&nbsp;Joint venture |
| kg | &nbsp;&nbsp;kilogram |
| km | &nbsp;&nbsp;kilometre |
| km/h | &nbsp;&nbsp;kilometres per hour |
| kPa | &nbsp;&nbsp;kilopascal |
| kt | &nbsp;&nbsp;kilotonne |
| kV | &nbsp;&nbsp;kilovolt |
| kVA | &nbsp;&nbsp;kilovolt-ampere |
| kW | &nbsp;&nbsp;kilowatt |
| L | &nbsp;&nbsp;litre |
| L/min | &nbsp;&nbsp;litres per minute |
| L/s | &nbsp;&nbsp;litres per second |
| LOM | &nbsp;&nbsp;life of mine |
| m | &nbsp;&nbsp;metre |
| M | &nbsp;&nbsp;million |
| Ma | &nbsp;&nbsp;million years |
| masl | &nbsp;&nbsp;metres above sea level |
| mm | &nbsp;&nbsp;millimetre |
| Mm<sup>3</sup> | &nbsp;&nbsp;Millions of cubic metres |
| MPa | &nbsp;&nbsp;megapascal |
| Mt | &nbsp;&nbsp;million metric tonnes |
| MW | &nbsp;&nbsp;megawatt |
| N | &nbsp;&nbsp;north |
| NI 43-101 | &nbsp;&nbsp;National Instrument 43-101 |
| NSR | &nbsp;&nbsp;net smelter return |
| OPEX | &nbsp;&nbsp;Operating cost |
| oz | &nbsp;&nbsp;troy ounce |
| OK | &nbsp;&nbsp;Ordinary kriging |

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| &nbsp;&nbsp;**Symbol / <br> Abbreviation** | &nbsp;&nbsp;**Description** |

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|:---|:---|
| P.Eng. | &nbsp;&nbsp;Professional engineer (a Canadian designation) |
| P.Geo. | &nbsp;&nbsp;Professional Geologist (a Canadian designation) |
| Pb | &nbsp;&nbsp;lead |
| ppm | &nbsp;&nbsp;parts per million |
| PVC | &nbsp;&nbsp;Polymerization of vinyl chloride (a plastic) |
| QA/QC | &nbsp;&nbsp;quality assurance/quality control |
| QP | &nbsp;&nbsp;qualified person |
| RMR | &nbsp;&nbsp;rock mass rating |
| S | &nbsp;&nbsp;South |
| SAG | &nbsp;&nbsp;Semi-autogenous grinding |
| SAMREC | &nbsp;&nbsp;South African Code for the Reporting of Exploration Results |
| Sb | &nbsp;&nbsp;Antimony |
| SDG | &nbsp;&nbsp;Sustainable development goals |
| SG | &nbsp;&nbsp;specific gravity |
| Sn | &nbsp;&nbsp;selenium |
| t | &nbsp;&nbsp;metric tonne |
| t/d | &nbsp;&nbsp;tonnes per day |
| t/m<sup>3</sup> | &nbsp;&nbsp;Tonnes per cubic metre |
| TSF | &nbsp;&nbsp;tailings storage facility |
| UTM | &nbsp;&nbsp;universal transverse mercator |
| V | &nbsp;&nbsp;volt |
| W | &nbsp;&nbsp;West |
| Zn | &nbsp;&nbsp;zinc |
| ZnEq | &nbsp;&nbsp;Zinc equivalent (other payable metal values have been converted to the same value of zinc metal) |

---

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 28-3

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|:---|:---|
| ![](logo_001.jpg) | ![](ex99-28_logo1.jpg) |

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| | |
|:---|:---|
| &nbsp;&nbsp;**Glossary** | &nbsp;&nbsp;**Glossary** |
| &nbsp;&nbsp;**Spanish Term** | &nbsp;&nbsp;**English Translation** |
| &nbsp;&nbsp;1er | &nbsp;&nbsp;primary |
| &nbsp;&nbsp;2do | &nbsp;&nbsp;secondary |
| &nbsp;&nbsp;Acceso | &nbsp;&nbsp;Sublevel access |
| &nbsp;&nbsp;Aire limpio | &nbsp;&nbsp;Fresh air |
| &nbsp;&nbsp;Aire viciado | &nbsp;&nbsp;Exhaust |
| &nbsp;&nbsp;Altura de banco | &nbsp;&nbsp;Bench height |
| &nbsp;&nbsp;Ancho | &nbsp;&nbsp;Width |
| &nbsp;&nbsp;Ángulo | &nbsp;&nbsp;Dip |
| &nbsp;&nbsp;Bomba estacionaria | &nbsp;&nbsp;Stationary pump |
| &nbsp;&nbsp;Bomba sumergible | &nbsp;&nbsp;Submersible pump |
| &nbsp;&nbsp;Bombeo | &nbsp;&nbsp;pumping |
| &nbsp;&nbsp;Buzon | &nbsp;&nbsp;Ore bin |
| &nbsp;&nbsp;Cara libre | &nbsp;&nbsp;Free face |
| &nbsp;&nbsp;Chimenea | &nbsp;&nbsp;Raise |
| &nbsp;&nbsp;Chimenea de ventilacion | &nbsp;&nbsp;Ventilation raise |
| &nbsp;&nbsp;Circuito | &nbsp;&nbsp;circuit |
| &nbsp;&nbsp;Desarollos | &nbsp;&nbsp;Development |
| &nbsp;&nbsp;Dique de colas | &nbsp;&nbsp;TSF |
| &nbsp;&nbsp;Direccion de tumbe | &nbsp;&nbsp;Ore mining direction |
| &nbsp;&nbsp;Exploración | &nbsp;&nbsp;Exploration |
| &nbsp;&nbsp;Filtracion | &nbsp;&nbsp;filtration |
| &nbsp;&nbsp;Flotacion | &nbsp;&nbsp;flotation |
| &nbsp;&nbsp;Flujograma | &nbsp;&nbsp;Flowsheet |
| &nbsp;&nbsp;Galería | &nbsp;&nbsp;Drift (gallery), classified as Superior (main) and Inferior (secondary) |
| &nbsp;&nbsp;Ingeniera | &nbsp;&nbsp;Engineering |
| &nbsp;&nbsp;Ingreso rampa | &nbsp;&nbsp;Portal |
| &nbsp;&nbsp;Mantenimiento | &nbsp;&nbsp;Maintenance |
| &nbsp;&nbsp;Media ambiente | &nbsp;&nbsp;environment |
| &nbsp;&nbsp;Mina | &nbsp;&nbsp;mine |
| &nbsp;&nbsp;Nivel | &nbsp;&nbsp;Level |
| &nbsp;&nbsp;Perforación | &nbsp;&nbsp;drilling |
| &nbsp;&nbsp;Planta Concentradora | &nbsp;&nbsp;Processing Plant |
| &nbsp;&nbsp;Plomo | &nbsp;&nbsp;lead |
| &nbsp;&nbsp;Puente | &nbsp;&nbsp;Pillar |
| &nbsp;&nbsp;Red de bombeo | &nbsp;&nbsp;Pumping system |
| &nbsp;&nbsp;Relleno | &nbsp;&nbsp;Backfill |
| &nbsp;&nbsp;Seccion longitudinal | &nbsp;&nbsp;Long section |
| &nbsp;&nbsp;Seccion transversal | &nbsp;&nbsp;Cross section |
| &nbsp;&nbsp;Seguridad | &nbsp;&nbsp;Security |
| &nbsp;&nbsp;Sistema | &nbsp;&nbsp;System |
| &nbsp;&nbsp;Subnivel | &nbsp;&nbsp;Sublevel |
| &nbsp;&nbsp;Subnivel de relleno | &nbsp;&nbsp;Backfill drift |
| &nbsp;&nbsp;Taladros | &nbsp;&nbsp;Drillholes |
| &nbsp;&nbsp;Taza de bombeo | &nbsp;&nbsp;Water storage pond |
| &nbsp;&nbsp;Ventilador | &nbsp;&nbsp;Fan |
| &nbsp;&nbsp;Veta | &nbsp;&nbsp;Vein |
| &nbsp;&nbsp;Zonas explotadas | &nbsp;&nbsp;Mined zones |

---

SANTACRUZ SILVER MINING LTD. \| CABALLO BLANCO TECHNICAL REPORT PAGE 28-4

## Exhibit 99.29

**Exhibit 99.29**![](ex99-29_001.jpg)

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|:---|:---|
| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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Date and Signature Page

This report entitled NI 43-101 Technical Report, Feasibility Study, Bolivar Mining Operations, effective as of January 1, 2023 was prepared and signed by the following authors:

Original document signed and sealed by:

<u>[*Richard Goodwin*]</u> June 25, 2024 <br> Richard Goodwin, P.Eng. Date Signed

Original document signed and sealed by:

<u>[*Garth Kirkham*]</u> June 25, 2024 <br> Garth Kirkham, P.Geo. Date Signed

Original document signed and sealed by:

<u>[*Tad Crowie*]</u> June 25, 2024 <br> Tad Crowie, P.Eng. Date Signed

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE i

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|:---|:---|
| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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**NOTICE**

JDS Energy & Mining, Inc. prepared this National Instrument 43-101 Technical Report, in accordance with Form 43-101F1, for Santacruz Silver Mining Ltd. The quality of information, conclusions and estimates contained herein is based on: (i) information available at the time of preparation; (ii) data supplied by outside sources, and (iii) the assumptions, conditions, and qualifications set forth in this report.

Santacruz Silver Mining Ltd. filed this Technical Report with the Canadian Securities Regulatory Authorities pursuant to provincial securities legislation. Except for the purposes legislated under provincial securities law, any other use of this report by any third party is at that party's sole risk.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE ii

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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**Table of Contents**

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|:---|:---|:---|:---|:---|
| **1** | **Executive Summary** | **Executive Summary** | **Executive Summary** | **1-1** |
|  | 1.1 | Introduction | Introduction | 1-1 |
|  | 1.2 | Ownership | Ownership | 1-1 |
|  | 1.3 | Location | Location | 1-2 |
|  | 1.4 | History | History | 1-2 |
|  | 1.5 | Geology and Mineralization | Geology and Mineralization | 1-3 |
|  | 1.6 | Mineral Processing and Metallurgical Testwork | Mineral Processing and Metallurgical Testwork | 1-4 |
|  | 1.7 | Mineral Resource Estimate | Mineral Resource Estimate | 1-4 |
|  | 1.8 | Mineral Reserve Estimate | Mineral Reserve Estimate | 1-6 |
|  | 1.9 | Mining | Mining | 1-7 |
|  | 1.10 | Recovery Methods | Recovery Methods | 1-11 |
|  | 1.11 | Infrastructure | Infrastructure | 1-13 |
|  | 1.12 | Environment and Permitting | Environment and Permitting | 1-16 |
|  |  | 1.12.1 | Environmental Considerations | 1-16 |
|  |  | 1.12.2 | Waste and Water Management | 1-16 |
|  |  | 1.12.3 | Permitting | 1-19 |
|  |  | 1.12.4 | Community Relations | 1-20 |
|  |  | 1.12.5 | Mine Closure | 1-22 |
|  | 1.13 | Capital and Operating Cost Estimates | Capital and Operating Cost Estimates | 1-23 |
|  |  | 1.13.1 | Capital Costs | 1-23 |
|  |  | 1.13.2 | Operating Costs | 1-24 |
|  | 1.14 | Economic Analysis | Economic Analysis | 1-25 |
|  |  | 1.14.1 | Result | 1-25 |
|  |  | 1.14.2 | Sensitivities | 1-29 |
|  | 1.15 | Risks, Opportunities and Recommendations | Risks, Opportunities and Recommendations | 1-30 |
|  |  | 1.15.1 | Risks | 1-30 |
|  |  | 1.15.2 | Opportunities | 1-31 |
|  |  | 1.15.3 | Recommendations | 1-32 |

---

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE iii

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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|:---|:---|:---|:---|:---|
| **2** | **Introduction** | **Introduction** | **Introduction** | **2-1** |
|  | 2.1 | Terms of Reference | Terms of Reference | 2-1 |
|  | 2.2 | Qualifications and Responsibilities | Qualifications and Responsibilities | 2-1 |
|  | 2.3 | Site Visit | Site Visit | 2-2 |
|  | 2.4 | Units, Currency and Rounding | Units, Currency and Rounding | 2-3 |
|  | 2.5 | Sources of Information | Sources of Information | 2-3 |
|  | 2.6 | List Of Previous Relevant Technical Reports | List Of Previous Relevant Technical Reports | 2-4 |
| **3** | **Reliance on Other Experts** | **Reliance on Other Experts** | **Reliance on Other Experts** | **3-1** |
| **4** | **Property Description and Location** | **Property Description and Location** | **Property Description and Location** | **4-1** |
|  | 4.1 | Location | Location | 4-1 |
|  | 4.2 | Property Description and Tenure | Property Description and Tenure | 4-2 |
|  | 4.3 | Environmental, Permitting and Social Impacts | Environmental, Permitting and Social Impacts | 4-5 |
|  |  | 4.3.1 | Regulatory Framework | 4-5 |
|  |  | 4.3.2 | Health, Safety and Economic Development | 4-6 |
|  |  | 4.3.3 | Environmental Management | 4-7 |
|  |  | 4.3.4 | Community Interaction | 4-8 |
| **5** | **Accessibility, Climate, Local Resources, Infrastructure and Physiography** | **Accessibility, Climate, Local Resources, Infrastructure and Physiography** | **Accessibility, Climate, Local Resources, Infrastructure and Physiography** | **5-1** |
|  | 5.1 | Accessibility | Accessibility | 5-1 |
|  | 5.2 | Climate and Physiography | Climate and Physiography | 5-1 |
|  | 5.3 | Infrastructure | Infrastructure | 5-2 |
| **6** | **History** | **History** | **History** | **6-1** |
|  | 6.1 | Management and Ownership | Management and Ownership | 6-1 |
|  | 6.2 | Historical Resource Estimates | Historical Resource Estimates | 6-2 |
|  | 6.3 | 2018-2022 Production | 2018-2022 Production | 6-4 |
| **7** | **Geological Setting and Mineralization** | **Geological Setting and Mineralization** | **Geological Setting and Mineralization** | **7-1** |
|  | 7.1 | Introduction | Introduction | 7-1 |
|  | 7.2 | Geological Tectonic Framework and Regional Geology | Geological Tectonic Framework and Regional Geology | 7-1 |
|  |  | 7.2.1 | Eastern Cordillera | 7-4 |
|  |  | 7.2.2 | Tacsarian Cycle (Upper Cambrian to Ordovician) | 7-10 |
|  |  | 7.2.3 | The Cordilleran Cycle (Late Ordovician to Late Devonian) | 7-10 |
|  |  | 7.2.4 | Subandean (Gondwana) Cycle (Upper Paleozoic) | 7-11 |
|  |  | 7.2.5 | The Mesozoic to Cenozoic Andean Cycle: The Serere, Puca and Corcoro Supersequences | 7-12 |
|  |  | 7.2.6 | The Andean Orogeny | 7-13 |
|  |  | 7.2.7 | Mesozoic to Cenozoic Magmatism | 7-13 |

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BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE iv

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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|:---|:---|:---|:---|:---|
|  | 7.3 | Local Geology | Local Geology | 7.14 |
|  | 7.4 | Mineralization | Mineralization | 7-14 |
|  | 7.5 | Bolivar Veins | Bolivar Veins | 7-19 |
|  |  | 7.5.1 | 3000 Veta Pomabamba (PBA) | 7-20 |
|  |  | 7.5.2 | 3010 Veta Nané (NAN) | 7-21 |
|  |  | 7.5.3 | 3020 Veta Bolivar (BOL) | 7-22 |
|  |  | 7.5.4 | 3030 Veta Ramo Bolivar | 7-22 |
|  |  | 7.5.5 | 3031 Veta Ramo Bolívar Central (RBC) | 7-23 |
|  |  | 7.5.6 | 3032 Veta Rama (RMA) | 7-23 |
|  |  | 7.5.7 | 3033 Veta Regina (REG) | 7-23 |
|  |  | 7.5.8 | 3034 Veta Branch One (UBI) | 7-23 |
|  |  | 7.5.9 | 3040 Veta Bolivar SW Ramo Nané (BSW RNA) | 7-23 |
|  |  | 7.5.10 | 3050 Veta Nueva (NUE) | 7-24 |
|  |  | 7.5.11 | 3060 Veta Nané Southwest (NSW) | 7-24 |
|  |  | 7.5.12 | 3090 Veta Rosario (ROS) | 7-24 |
|  |  | 7.5.13 | 3230 Veta Negrita (NEG) | 7-25 |
|  |  | 7.5.14 | 3101 Veta Santa Rosa 3 (SR3) | 7-25 |
|  |  | 7.5.15 | 3102 Veta Santa Rosa 4 (SR4) | 7-25 |
|  |  | 7.5.16 | 3070 Veta Nané Extension (EXN) | 7-25 |
|  |  | 7.5.17 | 3041 Veta Karen (KRN) | 7-26 |
| **8** | **Deposit Types** | **Deposit Types** | **Deposit Types** | **8-1** |
| **9** | **Exploration** | **Exploration** | **Exploration** | **9-1** |
| **10** | **Drilling** | **Drilling** | **Drilling** | **10-1** |
|  | 10.1 | Drilling Summary | Drilling Summary | 10-1 |
|  | 10.2 | Drilling Programs | Drilling Programs | 10-4 |
| **11** | **Sample Preparation, Analyses and Security** | **Sample Preparation, Analyses and Security** | **Sample Preparation, Analyses and Security** | **11-1** |
|  | 11.1 | Drillhole and Sub-Surface Sampling and Security | Drillhole and Sub-Surface Sampling and Security | 11-1 |
|  |  | 11.1.1 | Drill Core Logging, Photography, Sampling and Security | 11-1 |
|  |  | 11.1.2 | Sub-Surface Sampling and Logging | 11-6 |
|  | 11.2 | Sample Preparation and Analysis | Sample Preparation and Analysis | 11-7 |
|  | 11.3 | QA/QC Procedures and Discussion of Results | QA/QC Procedures and Discussion of Results | 11-10 |
|  | 11.4 | QP Statement | QP Statement | 11-17 |

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BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE v

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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|:---|:---|:---|:---|:---|
| **12** | **Data Verification** | **Data Verification** | **Data Verification** | **12-1** |
|  | 12.1 | Verifications by the Authors of this Technical Report | Verifications by the Authors of this Technical Report | 12-1 |
|  | 12.2 | Geology and Resources | Geology and Resources | 12-1 |
|  |  | 12.2.1 | Site Visit & Verification | 12-1 |
|  |  | 12.2.2 | Sample Database Verification | 12-2 |
|  |  | 12.2.3 | Independent Sampling | 12-2 |
|  |  | 12.2.4 | Geological Model Verification | 12-7 |
|  |  | 12.2.5 | Resource Estimation Verification | 12-7 |
|  |  | 12.2.6 | Conclusions | 12-8 |
|  | 12.3 | Mining Reserve | Mining Reserve | 12-8 |
|  | 12.4 | Metallurgy | Metallurgy | 12-8 |
|  | 12.5 | Site Visit for Mining, Infrastructure and Environment & Permitting | Site Visit for Mining, Infrastructure and Environment & Permitting | 12-8 |
| **13** | **Mineral Processing and Metallurgical Testing** | **Mineral Processing and Metallurgical Testing** | **Mineral Processing and Metallurgical Testing** | **13-1** |
|  | 13.1 | Company Feed Processing | Company Feed Processing | 13-1 |
|  |  | 13.1.1 | Mill Throughput | 13-1 |
|  |  | 13.1.2 | Feed Grades | 13-2 |
|  |  | 13.1.3 | Lead Production | 13-4 |
|  |  | 13.1.4 | Zinc Production | 13-6 |
|  | 13.2 | Toll Feed Processing | Toll Feed Processing | 13-8 |
|  |  | 13.2.1 | Mill Throughput | 13-8 |
|  |  | 13.2.2 | Feed Grades | 13-9 |
|  |  | 13.2.3 | Lead Production | 13-11 |
|  |  | 13.2.4 | Zinc Production | 13-13 |
|  | 13.3 | Metallurgical Assumptions | Metallurgical Assumptions | 13-15 |
| **14** | **Mineral Resource Estimate** | **Mineral Resource Estimate** | **Mineral Resource Estimate** | **14-1** |
|  | 14.1 | Introduction | Introduction | 14-1 |
|  | 14.2 | Data | Data | 14-1 |
|  | 14.3 | Geology Model | Geology Model | 14-2 |
|  | 14.4 | Data Analysis | Data Analysis | 14-4 |
|  | 14.5 | Composites | Composites | 14-9 |
|  | 14.6 | Evaluation of Outlier Assay Values | Evaluation of Outlier Assay Values | 14-13 |
|  | 14.7 | Specific Gravity Estimation | Specific Gravity Estimation | 14-18 |

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BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE vi

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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|:---|:---|:---|:---|:---|
|  | 14.8 | Block Model Definition | Block Model Definition | 14-22 |
|  | 14.9 | Resource Estimation Methodology | Resource Estimation Methodology | 14-23 |
|  | 14.10 | Mineral Resource Classification | Mineral Resource Classification | 14-25 |
|  | 14.11 | ZnEq and NSR Calculation | ZnEq and NSR Calculation | 14-27 |
|  | 14.12 | Mined Out and Sterilized Areas | Mined Out and Sterilized Areas | 14-28 |
|  | 14.13 | Resource Validation | Resource Validation | 14-29 |
|  | 14.14 | Sensitivity of the Block Model to Selection Cut-off Grade | Sensitivity of the Block Model to Selection Cut-off Grade | 14-32 |
|  | 14.15 | Mineral Resource Statement | Mineral Resource Statement | 14-34 |
|  | 14.16 | Discussion with Respect to Potential Material Risks to the Resources | Discussion with Respect to Potential Material Risks to the Resources | 14-35 |
| **15** | **Mineral Reserve Estimate** | **Mineral Reserve Estimate** | **Mineral Reserve Estimate** | **15-1** |
|  | 15.1 | Summary | Summary | 15-1 |
|  | 15.2 | Definitions | Definitions | 15-1 |
|  | 15.3 | NSR and COG Determinations | NSR and COG Determinations | 15-2 |
|  |  | 15.3.1 | Operating Costs | 15-2 |
|  |  | 15.3.2 | Metal Prices | 15-2 |
|  |  | 15.3.3 | Metallurgical Recoveries | 15-3 |
|  |  | 15.3.4 | Smelter Terms | 15-3 |
|  |  | 15.3.5 | Net Smelter Return and Cut-off Criteria | 15-3 |
|  | 15.4 | Estimation Methodology | Estimation Methodology | 15-3 |
|  | 15.5 | Mineral Reserve Estimate | Mineral Reserve Estimate | 15-4 |
| **16** | **Mining Methods** | **Mining Methods** | **Mining Methods** | **16-1** |
|  | 16.1 | Introduction | Introduction | 16-1 |
|  | 16.2 | Geotech Analysis & Recon | Geotech Analysis & Recon | 16-1 |
|  | 16.3 | Mining Methods | Mining Methods | 16-3 |
|  |  | 16.3.1 | Mine Design | 16-3 |
|  |  | 16.3.2 | Stoping | 16-4 |
|  |  | 16.3.3 | Development | 16-7 |
|  | 16.4 | Mine Services | Mine Services | 16-8 |
|  |  | 16.4.1 | Ventilation | 16-8 |
|  |  | 16.4.2 | Ventilation System – Central Zone | 16-9 |
|  |  | 16.4.3 | Ventilation System – Rosario Zone | 16-9 |
|  |  | 16.4.4 | Dewatering | 16-10 |

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BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE vii

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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|:---|:---|:---|:---|:---|
|  | 16.5 | Unit Operations | Unit Operations | 16-12 |
|  |  | 16.5.1 | Extraction and Transport System | 16-13 |
|  | 16.6 | Mine Equipment | Mine Equipment | 16-14 |
|  |  | 16.6.1 | Drilling Equipment – Drill Jumbo | 16-15 |
|  |  | 16.6.2 | Equipment for Support | 16-16 |
|  |  | 16.6.3 | Availability and Utilization Factors | 16-18 |
|  | 16.7 | Mine Personnel | Mine Personnel | 16-19 |
|  | 16.8 | Production | Production | 16-19 |
| **17** | **Process Description / Recovery Methods** | **Process Description / Recovery Methods** | **Process Description / Recovery Methods** | **17-1** |
|  | 17.1 | Process Plant Description | Process Plant Description | 17-3 |
|  |  | 17.1.1 | Crushing | 17-3 |
|  |  | 17.1.2 | Grinding | 17-3 |
|  |  | 17.1.3 | Flotation | 17-4 |
|  |  | 17.1.4 | Concentrate Dewatering | 17-4 |
|  |  | 17.1.5 | Tailings | 17-5 |
| **18** | **Project Infrastructure and Services** | **Project Infrastructure and Services** | **Project Infrastructure and Services** | **18-1** |
| **19** | **Market Studies and Contracts** | **Market Studies and Contracts** | **Market Studies and Contracts** | **19-1** |
|  | 19.1 | Contracts | Contracts | 19-1 |
|  |  | 19.1.1 | Illapa JV | 19-1 |
|  |  | 19.1.2 | Glencore Offtake Agreement | 19-1 |
|  | 19.2 | Market Studies | Market Studies | 19-1 |
|  | 19.3 | Smelting | Smelting | 19-2 |
|  | 19.4 | Metal Prices | Metal Prices | 19-2 |
| **20** | **Environmental Studies, Permitting and Social or Community Impacts** | **Environmental Studies, Permitting and Social or Community Impacts** | **Environmental Studies, Permitting and Social or Community Impacts** | **20-1** |
|  | 20.1 | Environmental Considerations | Environmental Considerations | 20-1 |
|  |  | 20.1.1 | Climate Change | 20-1 |
|  | 20.2 | Waste and Water Management | Waste and Water Management | 20-4 |
|  |  | 20.2.1 | Solid Waste - Bolivar | 20-9 |
|  |  | 20.2.2 | Water Management - Bolivar | 20-11 |
|  | 20.3 | Permitting | Permitting | 20-11 |
|  | 20.4 | Community Relations | Community Relations | 20-12 |
|  |  | 20.4.1 | Education | 20-18 |

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BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE viii

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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|:---|:---|:---|:---|:---|
|  |  | 20.4.2 | Community and Economic Development | 20-18 |
|  |  | 20.4.3 | Environmental Initiatives | 20-18 |
|  |  | 20.4.4 | Local Needs | 20-18 |
|  |  | 20.4.5 | Health and Sports | 20-19 |
|  | 20.5 | Mine Closure | Mine Closure | 20-20 |
| **21** | **Capital and Operating Costs** | **Capital and Operating Costs** | **Capital and Operating Costs** | **21-1** |
|  | 21.1 | Capital Costs | Capital Costs | 21-1 |
|  | 21.2 | Operating Cost Estimate | Operating Cost Estimate | 21-2 |
| **22** | **Economic Analysis** | **Economic Analysis** | **Economic Analysis** | **22-1** |
|  | 22.1 | Result | Result | 22-1 |
|  | 22.2 | Sensitivities | Sensitivities | 22-5 |
| **23** | **Adjacent Properties** | **Adjacent Properties** | **Adjacent Properties** | **23-1** |
| **24** | **Other Relevant Data and Information** | **Other Relevant Data and Information** | **Other Relevant Data and Information** | **24-1** |
| **25** | **Interpretations and Conclusions** | **Interpretations and Conclusions** | **Interpretations and Conclusions** | **25-1** |
|  | 25.1 | Observations | Observations | 25-1 |
|  | 25.2 | Risks | Risks | 25-3 |
|  | 25.3 | Opportunities | Opportunities | 25-4 |
| **26** | **Recommendations** | **Recommendations** | **Recommendations** | **26-1** |
| **27** | **References** | **References** | **References** | **27-1** |
| **28** | **Units of Measure, Abbreviations, Acronyms, and Glossary of Spanish Terms** | **Units of Measure, Abbreviations, Acronyms, and Glossary of Spanish Terms** | **Units of Measure, Abbreviations, Acronyms, and Glossary of Spanish Terms** | **28-1** |

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BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE ix

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List of Figures

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|:---|:---|
| Figure 1-1: Project History | 1-2 |
| Figure 1-2: Sub Level Stoping Scheme | 1-8 |
| Figure 1-3: Long Section of Typical Sub Level Stoping Operation | 1-9 |
| Figure 1-4: Bolivar Mill Flowsheet | 1-12 |
| Figure 1-5: Industrial Complex | 1-15 |
| Figure 1-6: Industrial Complex and Townsite | 1-15 |
| Figure 1-7: General Area | 1-16 |
| Figure 1-8: Water Treatment Process | 1-18 |
| Figure 1-9: Bolivar Mine Water Balance | 1-18 |
| Figure 1-10: Bolivar Surrounding Communities | 1-21 |
| Figure 1-11: Bolivar Community Investment | 1-22 |
| Figure 1-12: Univariate Sensitivities | 1-30 |
| Figure 4-1: Project Location Map | 4-1 |
| Figure 4-2: "COMIBOL" Mining Tenements Under Illapa JV | 4-3 |
| Figure 4-3: Bolivar Project Site | 4-4 |
| Figure 5-1: Aerial Photography of the Queaqueani TSF | 5-3 |
| Figure 6-1: Project History | 6-2 |
| Figure 7-1: Regional Geology Setting | 7-1 |
| Figure 7-2: Regional Geology Setting with Deposit Types | 7-2 |
| Figure 7-3: Plate Tectonic Reconstructions of the Neoproterozoic Subcontinent and the Late Precambrian Supercontinent after the Opening of the Southern Iapetus Ocean | 7-5 |
| Figure 7-4: Plate Tectonic Reconstructions of the Neoproterozoic and Late Precambrian Subcontinents | 7-6 |
| Figure 7-5: Paleogeography of SW Gondwana Margin in the Early Ordovician | 7-7 |
| Figure 7-6: The Famatinian – Taconic Orogen in the Middle Ordovician | 7-8 |
| Figure 7-7: The Ordovician of the Central Andes (Cunningham et al., 1994b) | 7-9 |
| Figure 7-8: Property Geology of Bolivar (Section A-A') | 7-15 |
| Figure 7-9: Section A-A' Property Geology of Bolivar | 7-15 |
| Figure 7-10: Geological Sketch Map of the Avicaya-Bolivar District | 7-17 |
| Figure 7-11: Structural Features and Local Geology | 7-18 |
| Figure 7-12: Paragenesis Bolivar Site | 7-20 |
| Figure 7-13: Bolivar Veins | 7-21 |

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BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE x

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| Figure 8-1: Conceptual Model of Bolivian Polymetallic Vein Type Deposits (modif. From Heuschmidt, 2000) | 8-3 |
| Figure 10-1: Plan View of Drillhole Locations at the Central Area | 10-3 |
| Figure 10-2: Section View A-A' (azimuth 230°) | 10-3 |
| Figure 10-3: Section View B-B' (azimuth 230°) | 10-4 |
| Figure 11-1: Example of Core Marked for Splitting | 11-2 |
| Figure 11-2: Core Splitting Facilities | 11-3 |
| Figure 11-3: Samples Prepared for Analysis Transport | 11-4 |
| Figure 11-4: Sample Submission Form | 11-5 |
| Figure 11-5: Drill Core Storage Facilities | 11-6 |
| Figure 11-6: Assay Methods Employed at the Bolivar Mine | 11-8 |
| Figure 11-7: Example of Don Diego Laboratory Assay Certificate | 11-9 |
| Figure 11-8: Plot of Ag g/t Values for Field Blanks | 11-11 |
| Figure 11-9: Plot of Pb% Vaues for Field Blanks | 11-12 |
| Figure 11-10: Plot of Zn% Vaues for Field Blanks | 11-12 |
| Figure 11-11: Plot of Coarse Reject Duplicates – Ag g/t | 11-13 |
| Figure 11-12: Plot of Coarse Reject Duplicates – Pb% | 11-14 |
| Figure 11-13: Plot of Coarse Reject Duplicates – Zn% | 11-14 |
| Figure 11-14: Plot of Pulp Duplicates – Ag g/t | 11-15 |
| Figure 11-15: Plot of Pulp Duplicates – Pb% | 11-16 |
| Figure 11-16: Plot of Pulp Duplicates – Zn% | 11-16 |
| Figure 12-1: Results of Independent Verification Sampling for Ag g/t | 12-4 |
| Figure 12-2: Results of Independent Verification Sampling for Pb% | 12-5 |
| Figure 12-3: Results of Independent Verification Sampling for Zn% | 12-6 |
| Figure 12-4: Results of Independent Verification Sampling for Fe% | 12-7 |
| Figure 13-1: Bolivar Mill Company Feed Throughput 2020/2021 | 13-2 |
| Figure 13-2: Zinc Feed Grade 2020/2021 | 13-3 |
| Figure 13-3: Lead Feed Grade 2020/2021 | 13-3 |
| Figure 13-4: Silver Feed Grade 2020/2021 | 13-4 |
| Figure 13-5: Mill Lead Concentrate Recovery vs. Lead Feed Grade | 13-5 |
| Figure 13-6: Silver Recovery to the Lead Concentrate vs. Mill Feed Silver Grade | 13-6 |
| Figure 13-7: Zinc Recovery to the Zinc Concentrate vs. Mill Feed Zinc Grade | 13-7 |
| Figure 13-8: Silver Concentrate to the Zinc Recovery vs. Mill Feed Silver Grade | 13-8 |
| Figure 13-9: Bolivar Mill Toll Feed Throughput 2020/2021 | 13-9 |

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BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE xi

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| Figure 13-10: Toll Feed Zinc Grade 2020/2021 | 13-10 |
| Figure 13-11: Toll Feed Lead Grade 2020/2021 | 13-10 |
| Figure 13-12: Toll Feed Silver Grade 2020/2021 | 13-11 |
| Figure 13-13: Mill Lead Concentrate Recovery vs. Lead Feed Grade | 13-12 |
| Figure 13-14: Silver Recovery to the Lead Concentrate vs. Mill Feed Silver Grade | 13-13 |
| Figure 13-15: Zinc Recovery to the Zinc Concentrate vs. Mill Feed Zinc Grade | 13-14 |
| Figure 13-16: Silver Recovery to the Zinc Concentrate vs. Mill Feed Silver Grade | 13-15 |
| Figure 14-1: Plan View of Bolivar Drillholes | 14-1 |
| Figure 14-2: Plan View of Bolivar Mineralized Zones and Drillholes | 14-2 |
| Figure 14-3: Section View of Bolivar Mineralized Zones and Drillholes Looking North | 14-3 |
| Figure 14-4: Long Section View of Bolivar Mineralized Zones and Drillholes Looking South East | 14-3 |
| Figure 14-5: Assay Interval Lengths | 14-8 |
| Figure 14-6: Assay Interval Lengths vs Silver Grades | 14-9 |
| Figure 14-7: Box Plot of Zn Composites for the Bolivar Deposit | 14-11 |
| Figure 14-8: Box Plot of Pb Composites for the Bolivar Deposit | 14-12 |
| Figure 14-9: Box Plot of Ag Composites for the Bolivar Deposit | 14-12 |
| Figure 14-10: Cumulative Probability Plot of Zn Composites for the Bolivar Deposit | 14-13 |
| Figure 14-11: Cumulative Probability of Pb Composites for the Bolivar Deposit | 14-14 |
| Figure 14-12: Cumulative Probability of Pb Composites for the Bolivar Deposit | 14-14 |
| Figure 14-13: Scatterplot of Zinc vs Density | 14-17 |
| Figure 14-14: Scatterplot of Lead vs Density | 14-18 |
| Figure 14-15: Scatterplot of Iron vs Density | 14-18 |
| Figure 14-16: Scatterplot of Silver vs Density | 14-19 |
| Figure 14-17: Scatterplot of Measured Density vs Calculated Density with Iron | 14-20 |
| Figure 14-18: Scatterplot of Measured Density vs Calculated Density without Iron | 14-21 |
| Figure 14-19: Dimensions, Origin and Orientation for the Bolivar Block Model | 14-22 |
| Figure 14-20: Long Section View of the Bolivar Deposit Showing Resource Block by Classification | 14-25 |
| Figure 14-21: Plan View of Development, Pillars, Mined Out and Sterilized | 14-27 |
| Figure 14-22: Classified Resources with Pillars, Mined Out and Sterilized Areas (Blue) | 14-28 |
| Figure 14-23: Long Section View of Bolivar Block Model with ZnEq Cut-off Grades | 14-29 |
| Figure 14-24: Long Section View of Measured, Indicated and Inferred Blocks with ZnEq Cut-off Grades along with Mined Out and Sterilized Areas | 14-30 |
| Figure 14-25: Long Section View of Measured and Indicated Blocks with ZnEq Cut-off Grades along with Mined Out and Sterilized Areas | 14-30 |

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BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE xii

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| Figure 14-26: Long Section View of Inferred Blocks with ZnEq Cut-off Grades along with Mined Out and Sterilized Areas | 14-31 |
| Figure 16-1: Sub Level Stoping Scheme | 16-4 |
| Figure 16-2: Long Section of Typical Sub Level Stoping Operation | 16-5 |
| Figure 16-3: Cross Section of Typical Sub Level Stoping Operation | 16-6 |
| Figure 16-4: Evolution of the Rock Mass Support System | 16-8 |
| Figure 16-5: Ventilation Scheme – Central Zone | 16-9 |
| Figure 16-6: Ventilation Scheme – Rosario Zone | 16-10 |
| Figure 16-7: Flow Record for the Pumping System | 16-10 |
| Figure 16-8: Pumping Scheme – Central Zone | 16-11 |
| Figure 16-9: Remote Mucking Platform and Placement | 16-13 |
| Figure 16-10: Extraction System Diagram | 16-14 |
| Figure 17-1: Bolivar Mill Flowsheet | 17-2 |
| Figure 18-1: Industrial Complex | 18-2 |
| Figure 18-2: Industrial Complex and Townsite | 18-2 |
| Figure 18-3: General Area | 18-3 |
| Figure 19-1: Historical Silver Price | 19-2 |
| Figure 19-2: Historical Lead Price | 19-3 |
| Figure 19-3: Historical Zinc Price | 19-3 |
| Figure 20-1: Santacruz Bolivia Operations Energy Consumption | 20-3 |
| Figure 20-2: Waste Classification by Process Source | 20-5 |
| Figure 20-3: Water Treatment Process | 20-7 |
| Figure 20-4: Santacruz Bolivia Water Balance | 20-9 |
| Figure 20-5: Volume profile of the Queaqueari Dam by Stage Height | 20-10 |
| Figure 20-6: Aerial Photography of the Queaqueani TSF | 20-10 |
| Figure 20-7: Bolivar Mine Water Balance | 20-11 |
| Figure 20-8: Total Investment in Communities | 20-15 |
| Figure 20-9: Bolivar Surrounding Communities | 20-17 |
| Figure 20-10: Bolivar Community Investment | 20-19 |
| Figure 22-1: Univariate Sensitivities | 22-5 |

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BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE xiii

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List of Tables

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| Table 1-1: Recovery and Concentrate Grade Estimates | 1-4 |
| Table 1-2: Base-Case Total Mineral Resources at 10.6% ZnEq Cut-off | 1-5 |
| Table 1-3: Mineral Reserve Estimate for Bolivar Mine (January 1, 2023) | 1-6 |
| Table 1-4: Production 2022 | 1-10 |
| Table 1-5: Recovery and Concentrate Grade Estimates | 1-13 |
| Table 1-6: Environmental Licenses Held by Santacruz | 1-19 |
| Table 1-7: Actual Combined Capital Requirement for All Bolivian Operations, 2017 to 2022 ($M) | 1-23 |
| Table 1-8: Projected Capital Requirement for all Bolivar Operations, 2023 to 2027 ($M) | 1-24 |
| Table 1-9: Unit Operating Costs ($/t) | 1-24 |
| Table 1-10: Production Forecast – Mining and Processing | 1-26 |
| Table 1-11: Production Forecast - Concentrate | 1-26 |
| Table 1-12: Revenue and Cost Projection ($M) | 1-27 |
| Table 1-13: Cashflow Projection ($M) | 1-28 |
| Table 2-1: QP Responsibilities | 2-2 |
| Table 2-2: QP Site Visits | 2-2 |
| Table 6-1: Historic Mineral Resource Estimate (2020) | 6-3 |
| Table 6-2: Historic Mineral Resource Estimate for 2018 and 2019 | 6-3 |
| Table 6-3: Historic Reserve Estimate (2020) | 6-4 |
| Table 6-4: Production at the Bolivar Mine, 2018 to 2022 | 6-4 |
| Table 10-1: Bolivar Drilling Programs from 2000 through 2021 | 10-1 |
| Table 10-2: Bolivar Drilling Details from 2000 through January 2023 | 10-5 |
| Table 11-1: Underground Sample Mineralization Codes | 11-7 |
| Table 11-2: QA/QC Sample Insertion Rates | 11-10 |
| Table 11-3: Quantity of Control Samples by Type | 11-11 |
| Table 12-1: Bolivar Independent Verification Sampling | 12-3 |
| Table 13-1: Recovery and Concentrate Grade Estimates | 13-16 |
| Table 14-1: Vein Codes and Descriptions for the Bolivar Deposit | 14-4 |
| Table 14-2: Statistics Silver, Lead and Zinc for the Bolivar Deposit by Vein | 14-5 |
| Table 14-3: Statistics Tin and Iron for the Bolivar Deposit by Vein | 14-6 |
| Table 14-4: Statistics Assay Interval Lengths for the Bolivar Deposit by Vein | 14-7 |
| Table 14-5: Composite Statistics for the Bolivar Deposit by Vein | 14-10 |
| Table 14-6: Outlier Cutting Analysis for the Bolivar Deposit | 14-15 |

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BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE xiv

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| Table 14-7: Outlier Cutting Analysis for the Bolivar Deposit | 14-16 |
| Table 14-8: Search Ellipse Parameters for the Bolivar Deposit | 14-24 |
| Table 14-9: ZnEq and NSR Calculation Parameters | 14-27 |
| Table 14-10: Sensitivity Analyses at Various ZnEq Cut-off Grades for Measured, Indicated and Inferred Resources | 14-30 |
| Table 14-11: Base-Case Total Mineral Resources at 10.6% ZnEq Cut-off | 14-34 |
| Table 14-12: Base-Case Total Mineral Resources at 10.6% ZnEq Cut-off Split by Area | 14-35 |
| Table 15-1: Actual Operating Costs for 2022 by Category | 15-2 |
| Table 15-2: Mineral Reserve Estimate for Bolivar Mine (January 1, 2023) | 15-4 |
| Table 16-1: Geomechanical Characterization | 16-2 |
| Table 16-2: Geomechanical Stability Analysis | 16-3 |
| Table 16-3: Inventory of Drill Jumbo Electrohydraulic Equipment | 16-15 |
| Table 16-4: Inventory of Electrohydraulic Support Equipment | 16-16 |
| Table 16-5: Inventory of Electrohydraulic Equipment for SLS Drilling | 16-16 |
| Table 16-6: Equipment Inventory – Scooptram | 16-17 |
| Table 16-7: Equipment Inventory - Dump Trucks | 16-17 |
| Table 16-8: Inventory of Company Owned Service and Transportation Equipment | 16-18 |
| Table 16-9: Mine Personnel | 16-19 |
| Table 16-10: Production 2022 | 16-19 |
| Table 19-1: Metal Price and Exchange Rate | 19-4 |
| Table 20-1: Total Waste Quantification and Treatment/Disposal | 20-6 |
| Table 20-2: Santacruz Bolivia Water Volumes | 20-8 |
| Table 20-3: Environmental Licenses Held by Santacruz | 20-12 |
| Table 20-4: Communities and Population Proximal to Santacruz Operations | 20-13 |
| Table 20-5: Concerns Put Forth by Proximal Communities in 2022 | 20-14 |
| Table 20-6: Bolivar Local Populations | 20-17 |
| Table 21-1: Actual Combined Capital Requirement for All Bolivian Operations, 2017 to 2022 ($M) | 21-1 |
| Table 21-2: Projected Capital Requirement for Bolivar Operations, 2023 to 2027 ($M) | 21-2 |
| Table 21-3: Unit Operating Costs ($/t) | 21-2 |
| Table 22-1: Production Forecast – Mining and Processing | 22-1 |
| Table 22-2: Production Forecast - Concentrate | 22-2 |
| Table 22-3: Revenue and Cost Projection ($M) | 22-3 |
| Table 22-4: Cashflow Projection ($M) | 22-4 |
| Table 25-1: Base-Case Total Mineral Resources at 10.6% ZnEq Cut-off | 25-2 |

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BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE xv

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1 Executive Summary <br>1.1 Introduction

JDS Energy & Mining Inc. (JDS) was commissioned by Santacruz Silver Mining Ltd. (Santacruz) to prepare a Technical Report in accordance with the Canadian Securities Administrators' National Instrument 43-101 and Form 43-101F1, collectively referred to as National Instrument (NI) 43-101 for the Bolivar Mine (Bolivar or the Bolivar Project) located in the state of Oruro, Bolivia.

The Bolivar Mine has been active for more than 200 years under various operators producing silver, tin, lead and zinc. The current mine complex consists of an underground mine, 1,100 tonne per day (t/d) concentrator plant, maintenance workshop, shaft-winder, tailings storage facility, water treatment plants, supplies warehouse, main office, Hospital, and camp.

This report is the first declaration of resources and reserves, for the Bolivar base metals underground mining operation since its acquisition by Santacruz The mine is fully operational at the time of this report's preparation. The effective date of both the resource and the reserve is 1 January 2023, which is approximately 17 months after the report date. Production data for the calendar year 2023 has been included in Section 24 Other Relevant Data and Information to show the depletion and typical replenishment of resources and reserves over a calendar year.

1.2 Ownership

On October 11, 2021, Santacruz entered into the Definitive Agreement with Glencore whereby Santacruz agreed to acquire a portfolio of Bolivian silver assets from Glencore, including the following: (a) a 45% interest in the Bolivar Mine and the Porco Mine, held through an unincorporated joint venture between Glencore's wholly-owned subsidiary Contrato de Asociación Sociedad Minera Illapa S.A. (Illapa) and COMIBOL, a Bolivian state-owned entity; (b) a 100% interest in the Sinchi Wayra S.A. (Sinchi Wayra) business, which includes the producing Caballo Blanco mining complex; (c) the Soracaya exploration project; and (d) the San Lucas ore sourcing and trading business.

On March 21, 2022, Santacruz completed this purchase, including Glencore's interest in the Bolivar Mine.

Santacruz thus owns 100% of the two Bolivian operating companies Illapa and Sinchi Wayra, which in turn own 45% of the Bolivar Mine, 45% of the Porco Mine, and 100% of the Caballo Blanco mining complex.

Sinchi Wayra is the operating company for all three active mining operations, including the Bolivar Mine.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 1-1

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1.3 Location

Bolívar Mine is located in the state of Oruro in Bolivia, and the municipality of Antequera. The complex has UTM WGS-84 coordinates of 727293.087E; 7959437.617N at an elevation of 4,014 masl. Paved roads connect Bolivar to Oruro City (75 km) and the concentrate warehouse and rail station at Poopó (22 km).

1.4 History

Bolivar Mine has been in operation since the early 19th century under various owners producing silver, tin, lead and zinc. After Nationalization in the 1950's tin was produced by the Bolivian State entity (COMIBOL). The current mine configuration was established in 1993. The project produces lead and zinc concentrates from a dedicated on-site process plant. Bolivar Mine is currently owned by the Bolivian government (COMIBOL) with exclusive mining held pursuant to an unincorporated joint venture (the **Illapa JV**) between private owner operator Contrato de Asociación Sociedad Minera Illapa S.A. (Illapa). Pursuant to the Illapa JV, Illapa holds a 45% interest in the Bolivar Project, and the Bolivian Government (COMIBOL) which holds a 55% interest in the Bolivar Project. Illapa is a wholly owned indirect subsidiary of Santacruz.

Recent efforts over the last five years have been focused on improving safety and productivity standards to compare with any modern operation. Mechanization has moved the mine into less selective "bulk" methods with some increase in the flexibility and productivity of the operation.

**Figure 1-1: Project History**

Source: Glencore (2021)

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1.5 Geology and Mineralization

The Bolivar Mine is located in the Cordillera de los Azanaques, forming the western edge of the Cordillera Oriental, which is detached from the Cordillera de los Frailes, belonging to the group of central mountain ranges. Characterized by undulating plateaus, outstanding mountains parallel to the course of the Andes, with elevations that vary between 3,400 and 4,600 masl. The area is part of the polymetallic belt of the altiplano and the Cordillera Occidental.

It is located in Cenozoic rocks of the middle to upper Silurian, constituted almost entirely by marine sediments of variable depth: from infraneritic, neuritic and bathyal environments.

The Bolivar system is a network epigenetic hydrothermal base metal type veins and faults filled mineralization hosted within a variety of lithologies from volcanic tuffs to sedimentary packages. The main mineral assemblages are composed of sphalerite, marmatite, galena, silver-rich galena and silver sulphosalts. The resources are usually based on multiple structures containing several veins. The typical dimensions of these structures ~500 m in length and ~450 m depth profile with mineralization continuing to be open at depth with vein widths of 0.2 m to 4.0 m.

The occurrence of a mineral deposit is related to two primordial aspects: a hot intrusive body generating mineralizing fluids and a pre-mineral geological structure receiving mineralization.

The non-presence of an intrusive body in close proximity to the deposit suggests that its formation is due to the influence of the Chualla Grande Stock and that the stock is the feeder. The result is higher temperature minerals such as coarse cassiterite accompanied by quartz and tourmaline in close proximity, an intermediate or transitional zone which contains Fe-Sn minerals (Buenos Aires, San Francisco, Venus veins) and an external zone where Bolívar is located with Zn-Pb-Ag-Sn minerals.

The polymetallic mineralization in the Bolivar deposit according to the mineragraphic studies concludes that it would have formed in different phases or mineralization events with a clear telescopic deposition:

● An early phase would comprise the mineral association of quartz – pyrite – sphalerite (of the marmatite type);

● Sphalerite (brown) – jamesonite – boulangerite – cassicrite (of the needle tin type) – stannine – galena – franckeite They would correspond to the intermediate phase of mineralization; and

● Finally, the carbonates (siderite) and quartz of the second generation would correspond to the late phase.

The composition and events of the mineralization indicate that the deposit was formed from hydrothermal solutions under intermediate temperature conditions of 250º - 300ºC, and that it classifies as a hydrothermal deposit of the meso- to epithermal type.

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1.6 Mineral
 Processing and Metallurgical Testwork

The processing plant at the Bolivar Mine has been operating since 1993. The recoveries used in this report are derived from the results of the plant operation over the period of August 2020 to July 2021.

There are two concentrates produced at the Bolivar mill: a lead concentrate and a zinc concentrate. While both concentrates pay for the metal they are named for and silver, the lead concentrate does not pay for zinc contained and the zinc concentrate does not pay for lead contained, so these recoveries are not included when summarizing the total recoveries.

The results from this analysis can be found in Table 1-1.

**Table 1-1: Recovery and Concentrate Grade Estimates**

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| &nbsp;&nbsp;**Parameter** | &nbsp;&nbsp;**Unit** | &nbsp;&nbsp;**Concentrates** | &nbsp;&nbsp;**Concentrates** | &nbsp;&nbsp;**Concentrates** | &nbsp;&nbsp;**Concentrates** |
| &nbsp;&nbsp;**Parameter** | &nbsp;&nbsp;**Unit** | &nbsp;&nbsp;**Lead Concentrate** | &nbsp;&nbsp;**Lead Concentrate** | &nbsp;&nbsp;**Zinc Concentrate** | &nbsp;&nbsp;**Zinc Concentrate** |
| &nbsp;&nbsp;**Parameter** | &nbsp;&nbsp;**Unit** | &nbsp;&nbsp;**Company Feed** | &nbsp;&nbsp;**Toll Feed** | &nbsp;&nbsp;**Company Feed** | &nbsp;&nbsp;**Toll Feed** |
| &nbsp;&nbsp;Zn Recovery | &nbsp;&nbsp;% | &nbsp;&nbsp;N/A | &nbsp;&nbsp;N/A | &nbsp;&nbsp;92 | &nbsp;&nbsp;86.091 + 0.3218\*(Zinc Feed Grade) |
| &nbsp;&nbsp;Pb Recovery | &nbsp;&nbsp;% | &nbsp;&nbsp;59.56 + 17.33\*(Lead Feed Grade) | &nbsp;&nbsp;32.15 + 17.69\*(Lead Feed Grade) | &nbsp;&nbsp;N/A | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;Ag Recovery | &nbsp;&nbsp;% | &nbsp;&nbsp;36.133 + 0.0604\*(Silver Feed Grade) | &nbsp;&nbsp;30 | &nbsp;&nbsp;57.516 - 0.0662\*(Silver Feed Grade) | &nbsp;&nbsp;36 |
| &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** |
| &nbsp;&nbsp;Zn | &nbsp;&nbsp;% | &nbsp;&nbsp;12 | &nbsp;&nbsp;11 | &nbsp;&nbsp;53 | &nbsp;&nbsp;44 |
| &nbsp;&nbsp;Pb | &nbsp;&nbsp;% | &nbsp;&nbsp;32 | &nbsp;&nbsp;20 | &nbsp;&nbsp;0.91 | &nbsp;&nbsp;1.25 |
| &nbsp;&nbsp;Ag | &nbsp;&nbsp;g/t | &nbsp;&nbsp;5900 | &nbsp;&nbsp;5500 | &nbsp;&nbsp;630 | &nbsp;&nbsp;775 |

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1.7 Mineral
 Resource Estimate

The Bolivar Mine is an "advanced property" and has been in continuous production since 1993. Glencore and subsequently Santacruz Silver has performed exploration and resource expansion drilling of surface and underground drillholes at the Bolivar Mine since 2000 totaling 49,173.5 m. The 145 drillholes and 23,059 underground channels in the database were supplied in electronic format by Santacruz. This included collars, downhole surveys, lithology data and assay data (i.e., Ag g/t, Pb%, Zn%, Fe%, Sn%).

The geological and lithological solid domain models were supplied by Santacruz in both Datamine<sup>™</sup> and LeapFrog<sup>™</sup> which are both industry-leading software systems. The QP imported the multiple vein domains into a similar system called MineSight<sup>™</sup> to verify solids volumes and ensure matching of the solids domains against the drillhole and sample database. Results confirmed location and extent of volumes are appropriate to resource estimation purposes.

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Resource block models were supplied in Datamine<sup>™</sup> format which is an industry recognized software system used for resource estimation. These models were then imported to MineSight<sup>™</sup> for verification of the resource estimation. In addition, independent estimations were run using the verified sample data and vein domains employing inverse distance estimations to ensure reasonableness and verify the resources independently. Results illustrated good agreement between the original and verification models.

The mineral resources were estimated in conformity with CIM's "Estimation of Mineral Resources and Mineral Reserves Best Practices Guidelines" (December 2019) and are reported in accordance with NI 43-101 guidelines.

Mineral resources are classified under the categories of measured, indicated and inferred according to CIM guidelines. The author evaluated the resource in order to ensure that it meets the condition of "reasonable prospects of eventual economic extraction" as suggested under NI 43-101. The criteria considered were confidence, continuity and economic cut-off in addition to considering constraining the resources within an underground mining volumes.

Using a cut-off grade of 10.6% ZnEq, the Bolivar Mine resources are presented in Table 1-2.

**Table 1-2: Base-Case Total Mineral Resources at 10.6% ZnEq Cut-off**

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| **Total Bolivar 2023 Mineral Resources** | **Total Bolivar 2023 Mineral Resources** | **Total Bolivar 2023 Mineral Resources** | **Total Bolivar 2023 Mineral Resources** | **Total Bolivar 2023 Mineral Resources** | **Total Bolivar 2023 Mineral Resources** |
| **Mine** | **Category** | **Tonnes ('000)** | **Zn (%)** | **Pb (%)** | **Ag (g/t)** |
| **Bolivar** | Measured | 855 | 12.78 | 1.37 | 327 |
|  | Indicated | 677 | 12.24 | 1.25 | 295 |
|  | **Total M+I** | **1532** | **12.54** | **1.32** | **313** |
|  | **Inferred** | **4202** | **10.35** | **1.00** | **403** |

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Notes:

1) The current Resource Estimate was prepared by Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd.;

2) All mineral resources have been estimated in accordance with Canadian Institute of Mining and Metallurgy and Petroleum (CIM) definitions, as required under National Instrument 43-101 (NI43-101);

3) The Mineral Resource Estimate was prepared using a 10.6% zinc equivalent cut-off grade. Cut-off grades were derived from $25.20/oz silver, $1.38/lb zinc and $1.20/lb lead, and process recoveries of 91% for zinc, 70% for lead, and 89.7% for silver. This cut-off grade was based on current smelter agreements and total OPEX costs of $120.22/t based on 2022 actual costs plus capital costs of $48.68/t, with process recoveries of 91.0% for zinc, 70.0% for lead, and 89.7% for silver. All prices are stated in $USD;

4) An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration; and

5) Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not account for a resource's mineability, selectivity, mining loss, or dilution. All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 1-5

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1.8 Mineral
 Reserve Estimate

The January 1, 2023 reserve estimate represents the validation of Santacruz's internally-generated mineral reserve estimate by QP Goodwin. All work on the reserve by the Santacruz mine design team and the validation exercises were done in Deswik<sup>™</sup>. The following process was used for this work:

● An NSR calculation and cut-off grade (COG) was developed by the QP using data provided by Santacruz;

● The reserve estimation methodology was reviewed, checked, and approved by the QP;

● Mine technical staff prepared a Life of Mine Plan (LOM) for the deposits using the NSR and COG provided by the QP. The LOM plan was prepared specifically for this reserve estimation and does not include inferred resources; and

● All LOM models were downloaded and reviewed by the QP for conformance to the methodology, proper application of the NSR cut-off grade, and correct application of agreed upon dilution and recovery factors.

The QP is satisfied that this exercise resulted in a valid reserve determination.

The Mineral Reserve Estimate for Bolivar Mine is shown in Table 1-3.

**Table 1-3: Mineral Reserve Estimate for Bolivar Mine (January 1, 2023)**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Mine** | **Category** | **Tonnes** | **Zn (%)** | **Pb (%)** | **Ag (g/t)** |
| **Central** | Proven | 653000 | 11.37 | 1.16 | 311 |
|  | Probable | 420000 | 9.57 | 0.84 | 237 |
|  | **Total** | **1073000** | **10.66** | **1.04** | **282** |
| **Rosario** | Proven | 89000 | 5.40 | 2.34 | 215 |
|  | Probable | 74000 | 5.27 | 1.64 | 209 |
|  | **Total** | **164000** | **5.34** | **2.03** | **212** |
| **Total Bolivar** | Proven | 742000 | 10.65 | 1.31 | 299 |
|  | Probable | 495000 | 8.92 | 0.97 | 233 |
|  | **Total** | **1237000** | **9.96** | **1.17** | **273** |

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1.9 Mining

The property consists of two mining areas:

● Mina Central – is the extension of the historic mining area and extends down to the minus 430 level (430 meters (m) below primary surface access). Multiple parallel and intersecting vein structures are mined, and this area accounts for approximately 75% of the total mine production; and

● Mina Rosario – is a parallel structure recently defined which is accessed and serviced separately and accounts for approximately 25% of the total mine production.

Sublevel Open Stoping is the stoping method employed at the mine with selective use of unconsolidated waste from development as backfill. Each stoping block is prepared by driving an upper and lower gallery along strike and in the vein approximately 50 m vertically apart. These main galleries are driven 4.0 m x 4.0 m in dimension. Sublevels are driven with a smaller cross section of 3.0 m x 3.5 m approximately 15 m vertically apart with a 5 m sill pillar as shown in Figure 1-2. Production drilling is with up-holes from the sublevels, and a drift is also driven right below the sill pillar for transporting backfill.

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**Figure 1-2: Sub Level Stoping Scheme**

![](ex99-29_005.jpg)

Source: Santacruz (2022)

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**Figure 1-3: Long Section of Typical Sub Level Stoping Operation**

![](ex99-29_006.jpg)

Source: Santacruz (2022)

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Depending on the dip, the sublevel stoping heights are approximately 12 m, except for the second sublevel, which has a height of 9 m due to the backfill drift. Break raises are driven conventionally, and the flexibility of the method allows for vertical pillars if needed to adjust for low grade areas, or to subdivide stoping blocks to provide production flexibility.

The mine employs the following mining equipment:

● Seven Resemin Muki FF single boom jumbo rigs with a power of 75 HP that drill between 2.4 and 3.0 m long holes. They are generally used for secondary development (horizontal vein developments) to prepare sublevels whose nominal dimensions are 3.0 m x 3.5 m. Occasionally they are used in small primary development headings;

● Two Resemin Troidón XP drill Jumbos with a power of 100 HP that can drill between 3.0 and 3.5 m. These are used only for large primary development headings (3.5 m x 3.5 m or 4.0 m x 4.5 m) for mine infrastructure such as: ascending and descending ramps, cuts, counter galleries, etc.);

● Two electrohydraulic rockbolters (one each in Central and Rosario Zones) to install support with steel mesh and Hydrabolt bolts of the back and ribs of primary development headings. These units have a power of 75 HP with a drilling capacity of 3.0 m;

● Four Resemin Raptor 44 long hole drills are used for drilling long holes using the "Sub Level Stoping" method. Due to the drilling and cleaning cycles, there is generally a drilling shift during each day, with monthly drilling performance of 1,200 m;

● Eleven scooptrams ranging in size from 2.0 to 5.9 yd<sup>3</sup> bucket capacity; and

● Ten haulage trucks, ranging in size from 10 to 20 t.

Key production results for 2022 are shown in Table 1-4.

**Table 1-4: Production 2022**

---

| | | | |
|:---|:---|:---|:---|
| | **Central Zone** | **Rosario Zone** | **Total** |
| Production (t) | 246009 | 72139 | 270104 |
| Waste rock (t) |  |  | 135200 |
| Backfill Hauled (t) |  |  | 171000 |
| Zinc (%) | 7.89 | 4.99 | 7.10 |
| Lead (%) | 0.75 | 0.89 | 0.65 |
| Silver (g/t) | 250 | 177 | 222 |
| Primary Devt Horizontal (m) | 2947 | 925 | 3872 |
| Primary Devt Vertical (m) | 159 | 69 | 228 |
| Secondary Devt Horizontal (m) | 2784 | 643 | 3427 |
| Secondary Devt Vertical (m) | 254 | 86 | 341 |

---

SANTACRUZ SILVER MINING LTD. \| BOLIVAR TECHNICAL REPORT PAGE 1-10

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1.10 Recovery
 Methods

The Bolivar Mill has been in continuous production since 1993. The mill receives feed from two sources; the company mining operation and toll milling purchased through San Lucas. The mill processes the two types of feed separately which allows for an analysis of processing for both types of feed.

The mill uses a crushing, grinding, and flotation flowsheet to recover a lead concentrate and a separate zinc concentrate. Both concentrates are sold to Glencore via overseas shipping through Antafagasta, Chile. The mill flowsheet can be found in Figure 1-4.

The mill generally separates company and toll feed into different days, but there are a few days where the feed is processed on the same day, with a shutdown in between to separate the two feeds.

The company feed grades are determined on a daily basis by collecting and assaying samples of the process taken at the cyclone overflow, concentrates and final tailings. Each month, the production is reconciled to the measured feed tonnage using the concentrates sold and the final tailings to calculate the feed grade. The toll feed is received from San Lucas, often in 1 t to 2 t lots, where it is weighed and sampled. The material is combined on a toll feed stockpile to be fed to the mill. The toll feed is reconciled in the same method as with the company feed to determine reconciled recoveries.

The mill utilizes different reagent strategies for the toll and company feed sources, primarily due to the presence of pyrrhotite which is found in the toll feed but generally not found in the company feed.

The processing plant targets 15 to 20% of the feed to be toll feed.

The plant flowsheet for the Bolivar mill is a typical sequential flotation circuit for lead and zinc (Figure 1-4). The ore is crushed in preparation for feed to the grinding circuit. The grinding circuit utilizes a SAG/Ball mill combination to produce a product size of 100 µm for the flotation circuit.

The flotation circuit starts with the lead recovery circuit. In this circuit a rougher concentrate is produced, which is then cleaned without regrinding, in a column flotation cell. The lead rougher and cleaner tails are combined and fed to the zinc circuit. The zinc circuit consists of rougher flotation and three stages of cleaning to produce a zinc concentrate. The zinc circuit tailings are deposited in the tailings pond. Both of the concentrates are filtered for shipping to the smelter. The lead concentrate is bagged for shipping, while the zinc concentrate is shipped bulk in trucks. The products are transported by truck to the train loading facility that is approximately 10 km from the mine for haulage to Antafagasta, Chile.

The expected availability for the mill is 93.8% and the utilization is 96.3% for an expected operating time of 90.3%.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 1-11

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**Figure 1-4: Bolivar Mill Flowsheet**

![](ex99-29_007.jpg)

Source: Glencore (2021)

SANTACRUZ SILVER MINING LTD. \| BOLIVAR TECHNICAL REPORT PAGE 1-12

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The metallurgical assumptions for recoveries and concentrate grades can be found in Table 1-5.

There are two tailings storage facilities at the Bolivar Mine. The original tailings storage has been decommissioned. The operational tailings dam is currently undergoing a lift to extend the capacity to 2024. Both tailings dams are inspected regularly and maintained to the standards set out by the Canadian Dam Association guidelines. Both dams are under the supervision of engineers from Wood Engineering and recently an external audit was conducted by Knight Piésold Consulting.

**Table 1-5: Recovery and Concentrate Grade Estimates**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Parameter** | &nbsp;&nbsp;**Unit** | &nbsp;&nbsp;**Concentrates** | &nbsp;&nbsp;**Concentrates** | &nbsp;&nbsp;**Concentrates** | &nbsp;&nbsp;**Concentrates** |
| &nbsp;&nbsp;**Parameter** | &nbsp;&nbsp;**Unit** | &nbsp;&nbsp;**Lead Concentrate** | &nbsp;&nbsp;**Lead Concentrate** | &nbsp;&nbsp;**Zinc Concentrate** | &nbsp;&nbsp;**Zinc Concentrate** |
| &nbsp;&nbsp;**Parameter** | &nbsp;&nbsp;**Unit** | &nbsp;&nbsp;**Company Feed** | &nbsp;&nbsp;**Toll Feed** | &nbsp;&nbsp;**Company Feed** | &nbsp;&nbsp;**Toll Feed** |
| &nbsp;&nbsp;Zn Recovery | &nbsp;&nbsp;% | &nbsp;&nbsp;N/A | &nbsp;&nbsp;N/A | &nbsp;&nbsp;92 | &nbsp;&nbsp;86.091 + 0.3218\*(Zinc Feed Grade) |
| &nbsp;&nbsp;Pb Recovery | &nbsp;&nbsp;% | &nbsp;&nbsp;59.56 + 17.33\*(Lead Feed Grade) | &nbsp;&nbsp;32.15 + 17.69\*(Lead Feed Grade) | &nbsp;&nbsp;N/A | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;Ag Recovery | &nbsp;&nbsp;% | &nbsp;&nbsp;36.133 + 0.0604\*(Silver Feed Grade) | &nbsp;&nbsp;30 | &nbsp;&nbsp;57.516 - 0.0662\*(Silver Feed Grade) | &nbsp;&nbsp;36 |
| &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** |
| &nbsp;&nbsp;Zn | &nbsp;&nbsp;% | &nbsp;&nbsp;12 | &nbsp;&nbsp;11 | &nbsp;&nbsp;53 | &nbsp;&nbsp;44 |
| &nbsp;&nbsp;Pb | &nbsp;&nbsp;% | &nbsp;&nbsp;32 | &nbsp;&nbsp;20 | &nbsp;&nbsp;0.91 | &nbsp;&nbsp;1.25 |
| &nbsp;&nbsp;Ag | &nbsp;&nbsp;g/t | &nbsp;&nbsp;5900 | &nbsp;&nbsp;5500 | &nbsp;&nbsp;630 | &nbsp;&nbsp;775 |

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1.11 Infrastructure

The Bolivar operation is essentially part of a townsite, housing the workers and their families. It has two camps, numerous residences, a hospital, and a school. Workers live in the town or in nearby Antequera. As such, the mine does not provide personnel transport.

The infrastructure is depicted in the following three site plans showing:

● The Industrial Complex (Figure 1-5);

● The Industrial Complex and Townsite (Figure 1-6); and

● The General Area (Figure 1-7).

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The industrial site is located on the northeastern edge of the townsite. It is fenced from the rest of the community and is guarded by security to control access. It contains the processing plant, mine offices, multiple maintenance buildings, the assay lab, mine services, multiple warehouses, and administration building. The industrial complex is located close to both mine portals to minimize the haulage distance to the crusher and processing plant.

The Santa Rita hospital is located in the south-east corner of the town, which provides services to the operation and community. This is augmented by a first aid station inside the industrial complex near the mine portal.

A dining hall is maintained for technical and administrative staff, which provides three catered meals per day year-round. Most workers eat at their own homes in town.

The site is connected to grid power supplied by the ENDE company to both the industrial complex and community.

Drinking water is provided by a dammed reservoir, which is monitored and controlled by environmental staff. The water is treated and distributed to the offices and homes of the town site over a three-hour period each day. Water storage tanks are employed by all users for 24-hour access to potable water. The current reservoir is the second such structure which replaced an older dammed reservoir that is now decommissioned.

A sewage network is provided and shared by offices and homes in the community.

The industrial waste dump is located 3.2 km from the industrial site, which is also monitored by the environmental department.

A mine rescue office is maintained in the townsite to respond to emergency situations. Firefighting and other safety equipment is located throughout the industrial complex and townsite.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 1-14

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**Figure 1-5: Industrial Complex**

![](ex99-29_008.jpg)

Source: Santacruz (2023)

**Figure 1-6: Industrial Complex and Townsite**

![](ex99-29_009.jpg)

Source: Santacruz (2023)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 1-15

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**Figure 1-7: General Area**

![](ex99-29_010.jpg)

Source: Santacruz (2023)

Bolivar Operations uses power for mining and processing operations. Power is supplied by the National Grid. Approximately 38 million kWh of power was consumed in 2022, representing an average draw of approximately 4.35 MW. This equates to 141 kWh/t mined or 117 kWh/t processed (including toll milling).

1.12 Environment
 and Permitting

1.12.1 Environmental
 Considerations

Responsible environmental management is a critical part of Santacruz's license to operate and our responsible, compliant operation of Bolivian assets has continued for the last 30 years. Environmental Compliance with national laws and regulations is the basis of Santacruz's environmental management system and is governed by a framework of oversight by the relevant Environmental Authority. Its environmental commitments are reported to the authorities annually in an Environmental Monitoring Report, which summarizes environmental management of its operations under applicable laws and regulations.

1.12.2 Waste
 and Water Management

Waste management is an important part of Santacruz's Comprehensive Environmental Management, which includes a waste management plan to classify, handle, and store waste separately for proper disposal or treatment. Waste management complies with Environmental Law No. 1333, its Regulations on Solid Waste Management, and its supplementary regulations, focusing primarily on the sectoral requirements of the Environmental Regulation for Mining Activities for waste rock and tailings.

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1.12.2.1 Solid
 Waste

Bolivar Mine has one active Tailing storage Facility (Queaqueani) and one inactive (Antiguo). Both are managed in compliance with the guidelines of the Canadian Dam Association (CDA) and the "Global Industry Standard on Tailings Management" issued by the UNEP (United Nations Environment Programme), ICMM (International Council on Mining and Metals), and PRI (Principles for Responsible Investment) in August 2020. This program includes third party Verification Assessments (Dam Safety Assurance Assessment). In response to findings from these assessments, and to mitigate risks of failure, risk management tools have been developed to improve management systems for the active TSF. For the inactive facility, monitoring and maintenance have been improved and follow good practice.

The "Queaqueani" tailings storage facility started operations in April 2007. This facility was designed by Canadian engineering firm AMEC and is located 3.5 km to the north of the operation. Hydraulic tails of 25-29% solids are beached along the upstream side of the dam crest and water is reclaimed from the southwest sector of the reservoir and pumped via HDPE pipelines back to the water treatment plant.

The Queaqueani Dam is a 33.5 m high, downstream-constructed dam. The current crest level is El. 3994.8 m (Stage IV-A raise was completed in December 2019). The next dam raise (Stage IV-B to El. 3997.8 m) is in progress and to be completed in 2023. There exists capacity to contain all tailings to be generated by processing the stated reserves.

1.12.2.2 Water
 Management

Water management has been identified as the most critical environmental area. Water is a shared resource of high social, environmental, and economic value, which is also a critical component of Santacruz's mining and metallurgical activities. Mining operations are located in the Bolivian Highlands, in areas with low precipitation, high evapotranspiration, and threats of drought.

Bolivar produces an excess of water from the underground mine. A total of approximately 170 l/s is pumped from the mine and is treated in separate plants for two different uses: one for potable water at the mine and surrounding communities, the other for industrial use in the mine and makeup water for the process plant (much of the water used for processing is reclaimed from the tailing facility). The discharge parameters as set out in Water Pollution Regulations Law No. 1333, include pH, iron, zinc, lead, and suspended solids, which are typical in the water treated from the mine. The balance of water is discharged to the Pampitas River.

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**Figure 1-8: Water Treatment Process**

![](ex99-29_011.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

**Figure 1-9: Bolivar Mine Water Balance**

![](ex99-29_012.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

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1.12.3 Permitting

Santacruz Silver operates the Bolivar Mine as a joint venture with the Bolivian Government (COMIBOL) The structure of the contract with COMIBOL is a "Partnership Contract governing Bolivar and Porco Mines (CA-MBP), and its purpose is to develop and implement a mining operation for the treatment of the existing mineralogical reserves and resources in the Bolívar and Porco Mines, by the exploitation, preparation, beneficiation and sale of mineral concentrates. Contrato de Asociación Sociedad Minera Illapa S.A. is authorized as operator and responsible of executing on behalf of COMIBOL, all the operations and activities of the association contract. The shares of CA-MBP are 55% for COMIBOL and 45% for Contrato de Asociación Sociedad Minera Illapa S.A." This renewable agreement expires in 2028.

Mining Contracts that grant the right to the subsoil mining resource are granted by the Mining Administrative Jurisdictional Authority (AJAM) over the ATE mining areas, and a contract is granted for each area or contiguous group of areas. Recent changes to the laws and government personnel have pushed Santacruz contract updates into a transitionary period waiting for final signatures and approvals. Santacruz holds Special Transitory Authorizations for each contract area which are officially designated "Mining Administrative Contracts for Adaptation". As of the effective date, approximately half of the applications have been transitioned, and the remainder fall under Article 187 of Law No. 535 on Mining and Metallurgy, which states:

*<u>ARTICLE 187</u>. (CONTINUITY OF MINING ACTIVITIES). Holders of Special Transitory Authorizations to be adapted or in the process of adaptation will continue their mining activities, with all the effects of their acquired or pre-constituted rights until the conclusion of the adaptation procedure.*

Santacruz has fully complied with this administrative procedure and is waiting for the Mining Administrative Authority to issue the relevant documents. It should be noted that this public entity has a considerable delay in the issuance of these documents.

Environmental Licenses have been formally granted to allow operation for all mining activity, by the Ministry of Environment and Water. The following table shows the licenses held by Santacruz:

**Table 1-6: Environmental Licenses Held by Santacruz**

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| | |
|:---|:---|
| **Operation** | **License** |
| Bolívar | 040603-02-da-0324/14 |
| Porco | 051203-02-da-0031/14 |
| Caballo Blanco – Colquechaquita Mine | 050101-02-da-131/11 |
| Caballo Blanco – Mina Reserva and Tres Amigos | 050101-02-da-561/11 |
| Caballo Blanco – Don Diego Concentrator Plant | 050302-02-da-003/2024 |
| Caballo Blanco – San Lorenzo Mine | 050101-02-da-005/06 |
| Comco | 050101-02-da-006/09 |
| Soracaya | 050801-02-CD-C3-002/2017 |
| Aroifilla Thermoelectric Plant | 050101-04-da-007/2023 |
| Yocalla Hydroelectric Plant | 050103-05-da-006/2023 |

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Source: Santacruz (2024)

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1.12.4 Community
 Relations

Santacruz mining projects are mostly well-established operations with a long history and a developed infrastructure, which provide direct benefits to employees and supporting businesses. However, the mines are located in rural to semirural areas in which the surrounding mostly agricultural communities can benefit from each operation only indirectly or through company outreach. Santacruz supports these communities by addressing services that are lacking, and helping to create value with economic development programs, and other forms of support.

A key player connected with all Bolivian Mines and surrounding areas are the mining cooperatives which are organized independent mining entities, some quite capable and organized with their own equipment. Recognized by the government as a valid economic activity for local development, they conduct their activities in abandoned mines or expropriating active mines, which can pose risks to business. The relationship is not completely one-sided as the Cooperatives sell mineralized material to process their product, thus mechanisms are in place to face possible subjugations, protect mine employees and the communities.

More importantly, proactive solutions and agreements to avoid conflict and coexist peacefully with the different cooperatives are in place. As much as possible, with cooperatives as toll processors at Santacruz Process Plants, compliance with occupational health and safety, human rights, and good work practice is sought.

Bolívar has a formal agreement (known as Actas de Reunión) with the neighboring communities. These agreements are recognized and managed by their Ayllus and include different plans and projects to help the communities with their economic development, infrastructure, access to water, education, and health and assist the communities by sponsoring their traditional festivities and sports.

Antequera is the largest community in the area of influence and immediately adjacent to the Bolivar operation. The communities neighboring Bolívar Mine are the homes of Santacruz's workers, contractors and family members. Most of them reside in the population of Antequera, from where they establish their relationship with the operation, which is itself adjacent to town.

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**Figure 1-10: Bolivar Surrounding Communities**

![](ex99-29_013.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

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**Figure 1-11: Bolivar Community Investment**

![](ex99-29_014.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

1.12.5 Mine
 Closure

Closure Planning for Operations has social, economic, workforce, and environmental impacts, so conceptual closure plans are shared with communities. Santacruz's goal is to recover areas by establishing a healthy ecosystem capable of sustaining productive land use, ensuring the best possible environmental conditions, including physical, chemical, biological, and ecosystem aspects, at closure. Environmental superintendents are responsible for monitoring the environmental closure planning, and periodic reviews of these plans are conducted, including surveys of areas and activities to adjust financial provisions for closure.

Land Use and Rehabilitation - environmental challenges related to biodiversity protection, soil restoration, and land use, are addressed through dialogue with stakeholders, including local communities and relevant authorities. Our comprehensive environmental management focuses on minimizing disturbed areas. In 2022, Santacruz managed a total of 6,600 hectares of land covered by Temporary Special Authorizations (ATEs) granted by the Mining Administrative Jurisdiction Authority (AJAM), under leasing contracts with the Government through COMIBOL. However, Santacruz's processing activities, services, and related infrastructure (industrial area) currently occupy only 400.5 hectares of land, including areas of previous mining operations and other areas with environmental closure located within the properties Santacruz manage.

In 2022, Santacruz continued with the reforestation plan in the Queaqueani Dam area, in accordance with an agreement with the community of the same name, and significant progress was made in the progressive closure of the old tailings facilities at the Don Diego Concentrator Plant.

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1.13 Capital
 and Operating Cost Estimates

1.13.1 Capital
 Costs

The Bolivar Mine has been in continuous operation for many years. There will be, as the reserve is expanded and developed, the need for step changes in mine access, production or haulage methods, which may require large capital outlays. These will be financially justified as needed. However, the capital needs for continued operation to exploit the remaining reserves is limited to Primary mine development, Capital equipment rebuilds and replacements, and Tailing Storage Facility expansions. Average annual capital has been and is projected to be in the 11 to 12 million USD range. It is anticipated that expansion work to the TSF will be required in 2023 ($2.5 million).

The historic total capital requirement for all the Bolivian operations is shown in Table 1-7. Bolivar's projected capital requirements for 2023 to 2027 is shown on Table 1-8.

**Table 1-7: Actual Combined Capital Requirement for All Bolivian Operations, 2017 to 2022 ($M)**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2017** | **2018** | **2019** | **2020** | **2021** | **2022** |
| Bolivar | 8.8 | 13.7 | 13.7 | 6.3 | 11.3 | 10.2 |
| Porco | 3 | 8.8 | 8.4 | 3.6 | 5.3 | 3.1 |
| Reserva | 1.3 | 2.4 | 2.1 | 2 | 4.3 | 3.5 |
| Tres Amigos | 2.1 | 2.6 | 1.5 | 1.8 | 2.2 | 3 |
| Don Diego | 0.9 | 6.9 | 1.4 | 0.9 | 1.1 | 1.2 |
| Colquechaquita | 1.2 | 2 | 1.4 | 1 | 3 | 2.5 |
| La Paz | 3.3 | 0.6 | 0.3 | 0.4 | 0.2 | 0.7 |
| Soracaya | 0.5 | 2.1 | 0.2 | 0.1 |  |  |
| San Lucas | 0.8 | 0 | 0 | 0.1 | 0.4 |  |
| **Total** | **21.8** | **39.0** | **28.5** | **16.3** | **27.8** | **24.3** |

---

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 1-23

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**Table 1-8: Projected Capital Requirement for all Bolivar Operations, 2023 to 2027 ($M)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2023** | **2024** | **2025** | **2026** | **2027** |
| Engineering/Admin | 0.0 | 0.0 |  | 0.1 |  |
| Safety/Environmental | 2.8 | 0.2 | 2.6 | 2.6 | 0.4 |
| Mobile Equipment/Maintenance | 2.7 | 4.4 | 4.1 | 2.7 | 1.2 |
| Plant | 0.6 | 0.6 | 0.7 | 0.7 | 0.2 |
| Exploration |  |  | 0.3 | 0.3 | 0.4 |
| Primary development | 5.1 | 6.3 | 6.2 | 6.3 | 4.5 |
| Corporate |  |  |  |  |  |
| **Total** | **11.3** | **11.5** | **14.0** | **12.6** | **6.7** |

---

Recurring exploration and primary development costs have been included in the COG calculations to better anticipate and account for total costs and make the COG more meaningful for reserve estimation and mine planning.

1.13.2 Operating
 Costs

Costs used for Cut-off Grade analysis were taken from actual costs for 2022. The actual cost of corporate G&A was allocated to each of the businesses.

**Table 1-9: Unit Operating Costs ($/t)**

---

| | |
|:---|:---|
| **Mine** | **Unit Cost, $/t** |
| Mine Operations | 36.29 |
| Mine Maintenance | 28.84 |
| Indirect | 22.32 |
| Plant | 18.28 |
| Warehouse | 0.64 |
| G&A | 13.84 |
| **Total** | **120.22** |

---

Mine operations include direct costs of mining, including labor, energy, materials, and services.

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Mine Equipment Maintenance Costs includes maintenance to all equipment related to direct development, exploitation and haulage, as well as service equipment such as pumping, ventilation, winches, etc.

Indirect costs would include Site Management, Technical services, Site Administration, Environmental and Social, Safety and Security.

Plant costs include direct Beneficiation costs as well as plant maintenance, and indirect costs.

Warehouse costs refer to Concentrate handling and storage.

General and Administration includes allocated Bolivian corporate costs.

1.14 Economic
 Analysis

1.14.1 Result

The Reserve Estimate was generated using actual costs experienced during a stable production period following the change in management after the purchase of the mine by Santacruz Silver (2022 and beginning of 2023). Actual costs were used for mine operating, concentrate overland transport, port costs, and shipping as well as smelting fees, payment terms, and penalty charges. A simplified Cash flow model was built to model the costs and conditions used to generate the Reserve estimates stated in this report.

The Bolivar Mine is part of a multi-operation business. However, the Economic model treats it as a separate financial entity with Bolivian corporate costs allocated for the analysis. As well, the operation is subject to a partnership with the Bolivian Government (COMIBOL), but the financial modelling examines the value of the operation on a 100% basis to support the Reserve statement.

The Bolivar Mine has been in continuous operation for over 200 years and the deposit is a network of relatively narrow veins. These two aspects drive the normal exploitation process of the mine, where inferred resources are converted and exploited in the same budget year. Resources are generally proven-up by drifting and sampling instead of drilling. Therefore, normal budgeting and mine planning includes resources outside of the Reserve estimate.

For this report, only Proven and Probable reserves are included in financial evaluation, so the production schedule represents the depletion of these reserves at average grade and current production rates. The context of the production schedule exploits the Proven and Probable reserves as part of a continuous operation and as such does not include the closure activities.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 1-25

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**Table 1-10: Production Forecast – Mining and Processing**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Unit** | **2023** | **2024** | **2025** | **2026** |
| **Mine Production** |  |  |  |  |  |
| Tonnes Mined | (DMT) | 317300 | 317300 | 317300 | 285082 |
| Tonnes Processed | (DMT) | 317300 | 317300 | 317300 | 285082 |
| **Head Grades** |  |  |  |  |  |
| Zinc | (%) | 9.96 | 9.96 | 9.96 | 9.96 |
| Lead | (%) | 1.17 | 1.17 | 1.17 | 1.17 |
| Silver | g/t | 273 | 273 | 273 | 273 |

---

Metallurgical recoveries and concentrate qualities used in the model are sourced from historic actuals for 2022 based on the head grades actually mined. Projected recoveries are thus estimated to be reasonable, to conservative These parameters will necessarily be conservative considering the higher grades in the production schedule.

**Table 1-11: Production Forecast - Concentrate**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Unit** | **2023** | **2024** | **2025** | **2026** |
| **Concentrates** |  |  |  |  |  |
| Zinc (with 0.5% losses) | (DMT) | 53991 | 53991 | 53991 | 48508 |
| Zn Conc. Grade | (%) | 53 | 53 | 53 | 53 |
| Ag (in Zinc) | g/t | 621 | 621 | 621 | 621 |
| Zn Recovery | (%) | 91 | 91 | 91 | 91 |
| Ag (in Zinc) | (%) | 39 | 39 | 39 | 39 |
| Lead (with 0.5% losses) | (DMT) | 9559 | 9559 | 9559 | 8588 |
| Pb Conc. Grade | (%) | 27 | 27 | 27 | 27 |
| Ag (in lead) | g/t | 4599 | 4599 | 4599 | 4599 |
| Pb Recovery | (%) | 70 | 70 | 70 | 70 |
| Ag (in Lead) | (%) | 51 | 51 | 51 | 51 |
| **Metal Recovery** |  |  |  |  |  |
| Zinc | (FMT) | 29000 | 29000 | 29000 | 26000 |
| Silver (in Zinc) | (FOT) | 1078000 | 1078000 | 1078000 | 968000 |
| Lead | (FMT) | 3000 | 3000 | 3000 | 2000 |

---

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 1-26

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **2023** | **2024** | **2025** | **2026** |
| Silver (in Lead) (FOT) | 1413000 | 1413000 | 1413000 | 1270000 |
| Silver (Total) (FOT) | 2491000 | 2491000 | 2491000 | 2238000 |

---

Notes:

FMT = Fine Metric Tonnes; DMT = Dry Metric Tonnes; FOT = Fine Ounces Troy

That same logic applies to the net revenue generation (Table 1-12) which includes smelter charges and penalty fees.

**Table 1-12: Revenue and Cost Projection ($M)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Unit** | **2023** | **2024** | **2025** | **2026** |
| **Payable Metal Revenue** |  |  |  |  |  |
| Zinc |  | 73 | 73 | 73 | 66 |
| Metallurgical Deduction |  | 11 | 11 | 11 | 10 |
| Gross Payable Zinc |  | 62 | 62 | 62 | 56 |
| Lead |  | 6 | 6 | 6 | 5 |
| Metallurgical Deduction |  | 1 | 1 | 1 | 1 |
| Gross Payable Lead |  | 5 | 5 | 5 | 5 |
| Silver |  | 52 | 52 | 52 | 47 |
| Metallurgical Deduction in Zinc |  | 9.2 | 9.2 | 9.2 | 8.2 |
| Metallurgical Deduction in Lead |  | 1.5 | 1.5 | 1.5 | 1.3 |
| Gross Payable Silver |  | 41.7 | 42 | 42 | 37 |
| Gross Revenue (Total) |  | 109 | 109 | 109 | 98 |
| **Smelter Charges and Penalties** |  |  |  |  |  |
| Treatment charges Zn | (USD/t) | 277 | 277 | 277 | 277 |
| Treatment charges Zn |  | 15 | 15 | 15 | 14 |
| Treatment charges Pb | (USD/t) | 133 | 133 | 133 | 133 |
| Treatment charges Pb |  | 1 | 1 | 1 | 1 |
| Penalties in Zn | (USD/t) | 7 | 7 | 7 | 7 |
| Penalties in Zn |  | 0 | 0 | 0 | 0 |
| Penalties in Lead | (USD/t) | 13 | 13 | 13 | 13 |
| Penalties in Lead |  | 0 | 0 | 0 | 0 |
| Refining Charges in Pb | (USD/FOZ) | 1 | 1 | 1 | 1 |
| Refining Charges in Pb |  | 2 | 2 | 2 | 2 |
| Smelter Fees and Penalties |  | 18 | 18 | 18 | 17 |

---

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Unit** | **2023** | **2024** | **2025** | **2026** |
| Net Revenue |  | 90 | 90 | 90 | 81 |
| **Operating Costs** |  |  |  |  |  |
| Production Costs |  | 34 | 34 | 34 | 30 |
| **Cost of Sales** |  |  |  |  |  |
| Rail Freight Zn |  | 6 | 6 | 6 | 5 |
| Rail Freight Pb |  | 1 | 1 | 1 | 1 |
| Port Expenses Zn |  | 2 | 2 | 2 | 2 |
| Port Expenses Pb |  | 0 | 0 | 0 | 0 |
| Rollback Fee Zn |  | 5 | 5 | 5 | 4 |
| Rollback Fee Pb |  | 1 | 1 | 1 | 1 |
| Concentrate Freight and Port Costs |  | 14 | 14 | 14 | 13 |
| Mine Royalty |  | 6 | 6 | 6 | 5 |
| Communities and Unions |  | 2 | 2 | 2 | 2 |
| Selling Costs |  | 23 | 23 | 23 | 21 |
| **Total Cost of Sales** |  | **57** | **57** | **57** | **51** |

---

Depreciation is a product of previous operation and annual capital expenditure incurred for the exploitation of the reserve tonnage. Capital is limited to that required to support mining, processing, and tailing storage for the reserve. Corporate G&A is that part of the in-country costs allocated to the Bolivar Mine.

**Table 1-13: Cashflow Projection ($M)**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **2023** | **2024** | **2025** | **2026** |
| **Income Statement** |  |  |  |  |
| Net Revenue | 90 | 90 | 90 | 81 |
| Production Costs | (34) | (34) | (34) | (30) |
| Selling Costs | (23) | (23) | (23) | (21) |
| Depreciation | (11) | (10) | (9) | (12) |
| **Gross Profit** | **22** | **23** | **24** | **18** |
| Corporate G&A | (4) | (4) | (4) | (4) |
| **Operating profit** | 17 | 19 | 20 | 14 |
| **EBIT** | 17 | 19 | 20 | 14 |
| Income Tax Expense (CIT) | (6.5) | (7.0) | (7.4) | (5.1) |
| **Net Gain/(Loss) for the Year** | **11** | **12** | **12** | **8** |

---

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 1-28

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **2023** | **2024** | **2025** | **2026** |
| **Cashflow Statement** |  |  |  |  |
| **Cash from Operations Activities** |  |  |  |  |
| Net Income | 11 | 12 | 12 | 8 |
| Depreciation | 11 | 10 | 9 | 12 |
| **Subtotal** | 22 | 22 | 21 | 21 |
| **Cash from Investing Activities** |  |  |  |  |
| Sustaining Capital Expenditure | (11) | (12) | (13) | - |
| **Subtotal** | **(11)** | **(12)** | **(13)** | **-** |
| **Cash Balance** | (11) | (12) | (13) | - |
| Beginning | - | 11 | 21 | 30 |
| Change in Cash | 11 | 10 | 9 | 21 |
| **Ending** | **11** | **21** | **30** | **51** |

---

Income Tax is 37.5% of the EBIT. As seen, the operations generate a positive cash flow after tax upon exploitation of the stated reserve at the metal prices used to generate the reserve.

1.14.2 Sensitivities

A univariate sensitivity analysis was performed to examine which factors most affect the Project economics when acting independently of all other cost and revenue factors. Each variable evaluated was tested using the same percentage range of variation, from -20% to +20%, although some variables may experience significantly larger or smaller percentage fluctuations over the LOM. For instance, the metal prices were evaluated at a ±20% range to the base case, while the capex and all other variables remained constant. This may not be truly representative of market scenarios, as metal prices may not fluctuate in a similar trend. The variables examined in this analysis are those commonly considered in similar studies – their selection for examination does not reflect any particular uncertainty.

Notwithstanding the above noted limitations to the sensitivity analysis, which are common to studies of this sort, the analysis revealed that the Project is most sensitive to metal pricing. The Project showed the least sensitivity to capital costs. Figure 1-12 shows the results of the sensitivity analysis.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 1-29

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**Figure 1-12: Univariate Sensitivities**

![](ex99-29_015.jpg)

1.15 Risks,
 Opportunities and Recommendations

1.15.1 Risks

The Bolivar Mine is subject to all of the risks normally associated with an operating mine, and some unique to its situation. These include:

● The current political and socio-economic climate in Bolivia poses risks and uncertainties that could delay or even stop development as reported within the Fraser Institute Annual Report 2022 where Bolivia ranks very low in many non-technical metrics. Bolivia has been ranked consistently low for the past five years and ranks in the lower quartile on all metrics that gauge risk and uncertainty. It is difficult to gauge or qualify the level or extents of the risks however, all companies working in Bolivia must continue to be aware of the potential risks and develop mitigation strategies. A significant risk related to the Santacruz Bolivian mineral assets and in particular the mineral resources and mineral reserves is the significant artisanal activity that continues to exist. This activity is not only a socio-economic risk but also affects access to resources and reserves along with potential sterilization of mineral resources;

● Geological interpretations may be subjective and may result in the location and extent of some of the mineralized structure although as the Bolivar Mine is comprised of well constrained veins, this risk is minimal;

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● As vein thicknesses are narrow, resources may be sensitive to dilution although the relative high grades that exist at the Bolivar Mine are successful at mitigating such risks to date;

● Varying resource classification methods and criteria may vary as more data is considered;

● There is no guarantee that further drilling will result in additional resources or increased classification;

● Lower commodity prices could change size and grade of the potential targets;

● Further work may disprove previous models and therefore result in condemnation of targets and potential negative economic outcomes;

● Ability to replace mined reserves on an annual basis; and

● Maintenance of Permits.

As the mine continues to expand to depth, the following aspects of mine operations will be challenged:

● Worker travel time (reduced time at the face);

● Dewatering inflow quantities, infrastructure and costs. The Central Mine already experiences large seasonal influxes of water, that sometimes affect production. This problem will be exacerbated by continued mining to depth;

● Ventilation system needs and costs; and

● Material handling.

As is shown on Figure 22-1, the greatest risk to the economic results in this study is from changes to metal prices.

The operation of the mining cooperatives, as described in Section 4.3.4.1, poses a risk to functionality of the Bolivar Operation. To date, Santacruz has been careful to culture a peaceful coexistence with the cooperatives and they have not operated in the core areas that Bolivar conducts mining operations. There is always a risk of this changing, and that their activities will escalate or relocate to more impactful areas.

1.15.2 Opportunities

Project opportunities include:

● A systematic exploration program could provide an excellent opportunity for successfully uncovering new discoveries;

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● An increased understanding and derivation of alternative theories may result in further discovery and expansion for the Project;

● A hydrogeological study could help the operation to better characterize and understand water inflows, aiding design work and planning to reduce the impact of major seasonal inflows;

● Higher commodity prices will change size and grade of the potential targets; and

● Potential for expansion and classification upgrade of resources as mining activities progress.

The principal opportunity to the mine is to improve the grade to the mill by implementing a mine dilution control program. As is typical with all narrow width mining, dilution is very sensitive to the mined widths of veins, which must be kept at minimum to accommodate equipment widths. Often, however, veins are over-mined to ensure complete recovery of the ore. This practice significantly increases dilution due to overbreak of the hanging wall and footwall.

1.15.3 Recommendations

To advance the Bolivar Mine and further evaluate the potential additional veins and increase resources thereby displacing depletion due to ongoing mining activities, the following is recommended:

● Regional exploration for identification of new veins;

● Incorporate structural interpretations to assist regional understanding;

● Analysis of thickness and grade-thickness profiles for resource targeting and predictive dilution study;

● Investigate geo-metallurgical characteristics;

● Hydrogeological study and modelling should be done to better understand water inflows and minimize their impact on production;

● Some Surface for near surface targets along with underground drilling for resource delineation and extension; and

● Tracking of Cooperativa progress to mitigate safety and resource risk.

The operation should conduct a thorough test stoping experiment to ensure the most economic balance between incomplete recovery and excessive dilution.

Underground operations that use three x 8 hour shifts typically lose much worker productivity due to excessive travel and break time over such a short shift. The current operation has an effective time of 5.5 hours per worker on an 8-hour shift. Consideration should be given to test a longer shift, say a schedule of 4 x 10 hours per week with three days off. With the same 2.5 hours of travel and break time, the effective time would increase to 7.5 hours per shift, resulting in an increase from 68% to 75% shift effectiveness or actual working time. The workers are apt to find that the longer days are harder, but that the three days off provide more rest on the balance of the week.

These recommendations have not been costed, as they represent changes to current practices that can be funded by existing operating budgets.

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2 Introduction <br>2.1 Terms of Reference

JDS Energy & Mining Inc. (JDS) was commissioned by Santacruz Silver Mining Ltd. (Santacruz) to prepare a Technical Report in accordance with the Canadian Securities Administrators' National Instrument 43-101 and Form 43-101F1, collectively referred to as National Instrument (NI) 43-101 for the Bolivar Project (Bolivar or the Project) located in the state of Oruro, Bolivia.

Santacruz is based in Vancouver, British Columbia and is engaged in the operation, acquisition, exploration and development of mineral properties in Latin America, with a primary focus on silver and zinc. Santacruz was incorporated on January 24, 2011 under the laws of British Columbia and is listed on the TSX Venture Exchange under the trading symbol "SCZ".

On October 11, 2021, Santacruz entered into the Definitive Agreement with Glencore whereby Santacruz agreed to acquire a portfolio of Bolivian silver assets from Glencore, including the following: (a) a 45% interest in the Bolivar Mine and the Porco Mine, held through an unincorporated joint venture between Glencore's wholly-owned subsidiary Contrato de Asociación Sociedad Minera Illapa S.A. (Illapa) and COMIBOL, a Bolivian state-owned entity; (b) a 100% interest in the Sinchi Wayra S.A. (Sinchi Wayra) business, which includes the producing Caballo Blanco mining complex; (c) the Soracaya exploration project; and (d) the San Lucas ore sourcing and trading business.

On March 21, 2022, Santacruz completed this purchase, including Glencore's interest in the Bolivar Mine.

Santacruz thus owns 100% of the two Bolivian operating companies Illapa and Sinchi Wayra, which in turn own 45% of the Bolivar Mine, 45% of the Porco Mine, and 100% of the Caballo Blanco mining complex. Sinchi Wayra is the operating company for all three active mining operations, including the Bolivar Mine.

This report is the first declaration of resources and reserves for the Bolivar base metals underground mining operation since its acquisition by Santacruz The mine is fully operational at the time of this report's preparation. The effective date of both the resource and the reserve is 1 January 2023, which is approximately 17 months after the report date. Production data for the calendar year 2023 has been included in Section 24 Other Relevant Data and Information to show the depletion and typical replenishment of resources and reserves over a calendar year.

2.2 Qualifications
 and Responsibilities

The Qualified Persons (QPs) preparing this report are specialists in the fields of geology, exploration, mineral resource estimation, metallurgy and mining.

None of the QPs or any associates employed in the preparation of this report has any beneficial interest in Santacruz and neither are any insiders, associates, or affiliates. The results of this report are not dependent upon any prior agreements concerning the conclusions to be reached, nor are there any undisclosed understandings concerning any future business dealings between Santacruz and the QPs. The QPs are being paid a fee for their work in accordance with normal professional consulting practice.

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The following individuals, by virtue of their education, experience and professional association, are considered QPs as defined in the NI 43-101, and are members in good standing of appropriate professional institutions / associations. The QPs are responsible for the specific report sections as listed in Table 2-1.

**Table 2-1: QP Responsibilities**

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Qualified Person** | &nbsp;&nbsp;**Company** | &nbsp;&nbsp;**QP Responsibility / Role** | &nbsp;&nbsp;**Report Section(s)** |
| &nbsp;&nbsp;Richard Goodwin, P.Eng. | &nbsp;&nbsp;JDS | &nbsp;&nbsp;Author, Mining, Project Manager | &nbsp;&nbsp;1.1 to 1.2, 1.8 to 1.9, 1.11 to 1.15, 2 to 6.1, 12.1, 12.3, 12.5, 15, 16, 18 to 26 |
| &nbsp;&nbsp;Garth Kirkham, P.Geo. | &nbsp;&nbsp;Kirkham Geosystems Inc. | &nbsp;&nbsp;Geology, QA/QC, Data Verification, Drilling, Resource Estimate | &nbsp;&nbsp;1.3 to 1.5, 1.7, 6.2, 7 to 11, 12.2, 14, 27 |
| &nbsp;&nbsp;Tad Crowie, P.Eng. | &nbsp;&nbsp;JDS | &nbsp;&nbsp;Metallurgy | &nbsp;&nbsp;1.6, 1.10, 12.4, 13, 17 |

---

2.3 Site
 Visit

In accordance with National Instrument 43-101 guidelines, site visits are summarized in Table 2-2. Sinchi Wayra staff and management were cooperative and helpful during the course of each visit. Access to all requested information and physical sites was provided voluntarily.

**Table 2-2: QP Site Visits**

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Qualified Person** | &nbsp;&nbsp;**Company** | &nbsp;&nbsp;**Date** | &nbsp;&nbsp;**Description of Inspection** |
| &nbsp;&nbsp;Richard Goodwin, P.Eng. | &nbsp;&nbsp;JDS | &nbsp;&nbsp;January 27, 2023 | &nbsp;&nbsp;Bolivar Project site; including process plant, select working areas of the underground mine, Potosi professional offices, Don Diego Mill Complex, discussions with site personnel. |

---

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Qualified Person** | &nbsp;&nbsp;**Company** | &nbsp;&nbsp;**Date** | &nbsp;&nbsp;**Description of Inspection** |
| &nbsp;&nbsp;Garth Kirkham, P.Geo. | &nbsp;&nbsp;Kirkham Geosystems Inc. | &nbsp;&nbsp;August 10-13, 2021<br> March 15-30, 2023 | &nbsp;&nbsp;Bolivar Mine and Project site; including select working areas and faces underground, Potosi professional offices, Don Diego Mill Complex, sample storage facilities, La Paz company offices, discussions with site and company personnel. |
| &nbsp;&nbsp;Tad Crowie, P.Eng. | &nbsp;&nbsp;JDS | &nbsp;&nbsp;August 10, 2021 | &nbsp;&nbsp;Bolivar Mine and Project site; including select working areas and faces underground, Potosi professional offices, Don Diego Mill Complex, sample storage facilities, La Paz company offices, discussions with site and company personnel. |

---

2.4 Units,
 Currency and Rounding

The units of measure used in this report are as per the International System of Units (SI) or metric, except for Imperial units that are commonly used in industry (e.g., ounces (oz.) and pounds (lb.) for the mass of precious and base metals).

All dollar figures quoted in this report refer to United States dollars (US$ or $) unless otherwise noted.

Frequently used abbreviations and acronyms can be found in Section 28. This report includes technical information that required subsequent calculations to derive subtotals, totals and weighted averages. Such calculations inherently involve a degree of rounding and consequently introduce a margin of error. Where these occur, the QPs do not consider them to be material.

This report may include technical information that requires subsequent calculations to derive sub-totals, totals and weighted averages. Such calculations inherently involve a degree of rounding and consequently introduce a margin of error. Where these occur, JDS does not consider them to be material.

2.5 Sources
 of Information

This report is based on information collected by the QPs during their site visits performed on August 10, 2021 (Kirkham and Crowie), on January 27, 2023 (Goodwin) and on March 15, 2023 (Kirkham) and on additional information provided by Santacruz, Glencore and Sinchi Wayra throughout the course of the QPs investigations. Other information was obtained from the public domain. The QPs conducted adequate verification of the information and take responsibility for the information provided by Santacruz.

2.6 List
 Of Previous Relevant Technical Reports

There has been one technical report published which was the subject of the Bolivar Project entitled "NI43-101 Technical Report, Bolivar Project, Oruro State, Bolivia" dated December 21, 2021. This report was produced by JDS on behalf of Santacruz and authored by Kirkham and Crowie who are also QP's for this Technical Report.

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3 Reliance on Other Experts

The QP's have relied on information provided by the Issuer on claims, ownership, property agreements, royalties, environmental liabilities, and permits as described in Section 4. The information appears reasonable but has not independently verified beyond the information that is publicly available.

The QPs have relied upon a legal opinion provided by Enrique Barrios of the firm Dentons Guevara & Gutierrez S.C., located in La Paz, Bolivia, in the documents "Local Counsel Legal Opinion on the Porco Mine", "Local Counsel Legal Opinion on the Caballo Blanco Project", "Local Counsel Legal Opinion on Empresa Minera San Lucas S.A.", "Local Counsel Legal Opinion on Sociedad Minero Metalúrgica Reserva Ltda.", "Local Counsel Legal Opinion on Sociedad Minera Illapa S.A.", "Local Counsel Legal Opinion on Sinchi Wayra S.A.", and "Local Counsel Legal Opinion on the Illapa Joint Venture", all dated March 18, 2022 with regards to the Property's location, title, and environmental licenses described in Section 4 of this report.

The QPs have relied on information provided by Arturo Prestamo of Santacruz for the information contained in Section 20 and for the smelter agreements used for the determination of the resources, reserves, and economic model.

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4 Property Description and Location

4.1 Location

Bolívar Mine is located in the state of Oruro in Bolivia, and municipality of Antequera. The complex has UTM WGS-84 coordinates of 727293.087E; 7959437.617N at an elevation of 4014 masl. Paved roads connect Bolivar to the capital city La Paz (298 km), Oruro City (75 km) and Poopó Rail Station (22 km) which is the concentrate warehouse and dispatch.

**Figure 4-1: Project Location Map**

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4.2 Property
 Description and Tenure

The Bolivar Mine has been active from more than 200 years. The current mine complex consists of an underground mine, 1,100 t/d concentrator plant, maintenance workshop, shaft-winder, tailings storage facility, water treatment plants, supplies warehouse, main office, hospital, and camp.

Two water treatment plants operate on mine water discharge; one potable treatment plant for the camp and surrounding community as well as a separate treatment plant for reuse of process water for industrial purposes. Electric power is purchased from the Bolivian Grid and available to the mine via overhead high-tension lines.

The mine stores tails in one active modern facility. There exists a historic storage facility on the site as well.

The Bolivar Mine is owned by the Bolivian Government (COMIBOL) with exclusive mining rights held pursuant to an unincorporated joint venture (the **Illapa JV**) between private owner operator Contrato de Asociación Sociedad Minera Illapa S.A. (Illapa). Pursuant to the Illapa JV, Illapa holds a 45% interest in the Bolivar Project, and the Bolivian Government (COMIBOL) which holds a 55% interest in the Bolivar Project.

Illapa itself owns no mineral tenements in this district.

Off-take Agreements with Glencore International are in place for the Bolivar Mine production: Contract No. 180-03-10309-P and Contract No. 062-03-10276-P, including all its addendums and amendments. These Off-Take Agreements are in effect through the life of the mine.

On March 21, 2022 Santacruz acquired 100% of the shares of Illapa, as more particularly described in Section 2. There is a 1.5% NSR royalty to Glencore, provided as part of the purchase price that Santacruz paid. On March 28, 2024, Santacruz and Glencore entered into a binding term sheet (the Term Sheet) which, among other terms, extinguished the 1.5% NSR royalty to Glencore. The only known existing agreements that will bind Santacruz is that of the Illapa JV. Environmental liabilities observed consist mostly of historic tailing storage facilities and mine workings. Recent audits verify environmental legal compliance and associated closure plan costing.

Figure 4-2 shows COMIBOL's tenements under the Illapa Joint Venture.

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**Figure 4-2: "COMIBOL" Mining Tenements Under Illapa JV**

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Bolívar Mine is located in the state of Oruro in Bolivia, and municipality of Antequera. The complex has UTM WGS-84 coordinates of 727293.087E; 7959437.617N at an elevation of 4014 masl.

**Figure 4-3: Bolivar Project Site**

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4.3 Environmental,
 Permitting and Social Impacts

Santacruz Silver continues to manage its operations using a sophisticated management approach to sustainability consistent international standards. From the 2022 Sustainability Report:

*We are: "A leading Business Group in the mining industry in Bolivia, sustainable, committed to the safety, health, and well-being of our Human Capital, and the preservation of the environment, with an entrepreneurial spirit, openness to change and innovation, and we strive to generate value and positive impact for society as a whole."*

 

This integrative approach is evident in the Bolivar operation. Areas addressed and monitored include:

● Employees;

● Occupational Health & Safety;

● Governance and Compliance;

● Stakeholder Engagement;

● Contributing to Community;

● Environment; and

● Product Stewardship & Material Handling.

4.3.1 Regulatory
 Framework

Bolivia's central statute governing environment protection is Law 1333, of 27 April 1992; specific regulations for which are set out in Regulation of Environmental Prevention and Control, December 8, 1995. Special Decree No. 24782 of 31 July 1997 sets out specific environmental requirements related to mining. Breaching environmental obligations can result in criminal liability under the Bolivian Constitution, in addition to other administrative penalties (such as a loss of mining rights).

An Environmental Impact Assessment (EIA) would be required for a project the scale of a mining and processing operation. As well, public consultation with any potentially affected indigenous communities and local populations may also be necessary. Granting of the operating permit allows the proponent to obtain the appropriate operating licenses, which must be updated with any relevant changes during the life of the operation.

Specialized environmental authorities control compliance. As required under the license, any impact on the environment must be reported to these authorities. Remediation measures and rehabilitation projects are compulsory, and financial reserve funds are maintained annually to cover closure costs. A final closing study on the effect on the environment will also be required, and restitution met.

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On February 25, 2014, a Declaration of Environmental Adequacy Certificate was issued by the Ministry of Environment and Water addressing the proper license updating procedure carried out by Sinchi Wayra S.A. during the transfer of the Bolivar Mine to Contrato de Asociación Sociedad Minera Illapa S.A. In the same manner, the updating of the Porco Mine License, was addressed and approved by the Ministry of Environment and Water, on February 21, 2014, in the transfer procedure from Sinchi Wayra to Illapa.

Illapa was granted the Mining Identification Number 02-0697-04, by the SENARECOM (National Service of Control and Registration of Minerals and Metals Commercialization, for its acronym in Spanish), which expires on September 25, 2022:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Sinchi
 Wayra transferred the Bolivar Mine, which was recognized in the Declaration of Environmental
 Adequacy (DAA) N.° 040603-02-DAA-0324/14 dated February 25, 2014. The DAA has the nature
 of an environmental license; and

b. The
 General Direction of War Logistics and Material issued a Registration Certificate under number
 0167/2021, for the use of explosives and accessories in mining activities. Expiring date:
 August 26, 2023.

4.3.2 Health,
 Safety and Economic Development

As per the Santacruz Sustainability program:

● Employees - Establishing relationships based on trust and promoting a culture of prevention and safe environments. Quality employment opportunities are offered with non-discriminatory hiring. In 2022, Bolívar employed total of 370 employees and 314 contractors, 7% of whom were women. Given the labor benefits offered, Bolívar has a low turnover rate. 71% of employees at Bolívar are unionized. Santacruz guarantees freedom of association and the right to collective bargaining;

● Occupational Health & Safety - Realizing the inherent personal risks of mining, and the incremental increase in incident rates over the last three years, emphasis continued in 2022 in program development and training in proper work practices at Bolívar;

● Health - Medical care is provided to employees through third party health insurers at Santa Rita Hospital. Regular Occupational Health examinations are given to all workers and treatment provided when prescribed. In 2022, occupational health factors at Bolívar, continue to be monitored after baseline date indicated most parameters fell within acceptable limits;

● Community - The neighboring communities house workers, contractors, and their families. Most of them reside in Antequera, which lies adjacent to the mine. In 2022, US$660,000 was invested in the development of neighboring communities, benefitting approximately 1,900 families;

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● Education - One of the schools in Antequera continues to be financed by Santacruz and serves 500 students. The program includes funding of teachers', directors' and supporting personnel's wages, supplies and equipment, payment of services and school infrastructure. 29 scholarships were awarded for study abroad in the capital cities. These programs not only help the local communities, but they provide Bolivar with trained professionals. Public education is also supported through extracurricular sports and cultural activities;

● Economic Development - Bolívar offers a professional training workshop for women who live in the mining camp and that make up the Housewives' Committee. Fire extinguisher training was provided for 100 people this year and five houses were renovated as well as other help to nearly 100 families in two communities;

● Environment - Reforestation continued throughout the Queaqueani tailings dam area, and a water diversion project in Antequera focused on improving farming performance that benefited 200 people; and

● Local Needs - Cultural activities were sponsored including a safety management contest, sponsorship of trips for the Sebastián Pagador graduates, cooking courses for housewives, support for the elderly in purchasing groceries, and the anniversary celebration of Antequera

4.3.3 Environmental
 Management

4.3.3.1 Water
 Management

Bolivar produces an excess of water from the underground mine. A total of approximately 150 liters per second is pumped from the mine. This water is treated for two different uses: one for potable water at the mine and surrounding communities, the other for industrial uses in the mine and process plant. The balance of water is discharged to the Pampitas River.

4.3.3.2 Tailings
 Management

The stage VI lift of the Queaqueani Tailings Dam was completed in to updated design and international standards. For this Project, more than 400,000 cubic meters (m<sup>3</sup>) of material were moved. A strict on-site Quality Control Management (CQC) and external Quality Assurance (CQA) was followed, and an enhanced monitoring program was put in place. Tailings from the process plant and sludge from the Water treatment plant is deposited in this facility.

4.3.3.3 Waste
 Management

Bolívar currently disposes of all waste rock underground; thus, surface management is not required. Domestic waste is collected by the municipal cleaning company of Antequera, whereas industrial waste is temporarily stored in authorized locations and is subsequently recycled by specialized companies.

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4.3.4 Community
 Interaction

Santacruz assigns a dedicated Social Management superintendent for the Bolivar Mine. This position, which employs professionally trained individuals, has the most direct contact with the local community. A staff of approximately seven support the superintendent and implementation of social programs and projects, The Company also has a Corporate Sustainability Coordinator, who oversees the economic management of these projects and submission of Safety, Health, Environment and Communities reports to corporate management, and other interested parties, such as the United Nations Global Compact and Sustainable Development Goals (SDGs) Working Tables. All of them are under the purview of the Corporate Affairs and Sustainability Manager. Most of the social responsibility programs are implemented jointly with the environmental team, the projects and civil works team, and the labor relations team, given that most workers are union members and reside in the communities themselves.

A due diligence policy was implemented for community investments in 2019 which applies to all of Sinchi Wayra's operations and governs the Company's contributions and investments in community projects. It establishes a process that begins with the investment requests submitted by the communities involved, through the Representatives of their Ayllu (Autonomous Indigenous Government). Then, meetings are held with the communities to discuss the feasibility of the project to be financed. The community authorities exert social control on the projects that will be conducted and are part of the process.

Bolívar has a formal agreement (known as Actas de Reunión) with the neighboring communities. These agreements are recognized and managed by their Ayllus and include different plans and projects to help the communities with their economic development, infrastructure, access to water, education, and health and assist the communities by sponsoring their traditional festivities and sports. This process is verified by the Compliance Officer, who conducts a Due Diligence Process verifying the background of the beneficiaries and ensuring that the project award process complies with HSEC and conflicts of interest policies and with our Code of Conduct. If the projects meet all the requirements and have the approval of the regional compliance officers, the relevant administrative process for the project can begin.

4.3.4.1 Mining
 Cooperatives

A key player of Bolivar Mine and surrounding area are the mining cooperatives which are organized independent mining entities, some quite capable and organized with their own equipment. Recognized by the government as a valid economic activity for local development, they conduct their activities in abandoned mines or expropriating active mines which can pose risks to business. The relationship is not completely one-sided as the Cooperatives utilize the Bolivar plant to process their product, thus mechanisms are in place to face possible subjugations, protect mine employees and the communities.

More importantly, proactive solutions and agreements to avoid conflict and coexist peacefully with the different cooperatives are in place. As much as possible, with cooperatives as toll processors, compliance with occupational health and safety, human rights, and good work practice is sought.

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To incorporate a new supplier, an assessment is required, including:

● Submission of legal documents proving that they are up to date with regard to any rules in force;

● The mineral supplier's background is verified; for this purpose, we have access to the Thomson Reuters and Info center systems, which report their background globally. This system informs us whether the supplier has any negative local or international background; in that case, the Company does not hire the services;

● Commercial visit to the supplier's operations, to directly verify the standards such as the 132 company's Code of Ethics. In particular, we analyze whether child labor is employed in the operations, and any other Human Rights violations. We also observe the use of safety equipment and personal protective equipment that guarantee the safety of the workers; and

● Machinery is assessed to ensuring that they are in good condition and that they guarantee safety. Once all these steps are completed and upon the in-situ verification of legal documents, the relationship with the cooperative is authorized.

A pilot support program was launched in 2019 to supply advisors and technical assistance on environment, human rights, occupational health & safety, and administrative management. The goal being to help mineral suppliers improve their internal systems and processes to ensure sustainability and compliance with Santacruz's sustainability standards.

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5 Accessibility, Climate, Local Resources, Infrastructure and Physiography

5.1 Accessibility

Paved roads connect Bolivar to the capital city La Paz (298 km), Oruro City (75 km) and Poopó Rail Station (22 km). Concentrates are transported by truck from Bolivar process plant to the rail station at Poopó (concentrate warehouse and dispatch) from where it is transported to a warehouse at Portezuelo outer Harbor, located 35 km from the city of Antofagasta, Chile. Once bulk shipment is arranged, the concentrates are consolidated in air-tight containers and trucked to the port of Antofagasta. Alternate ports are also accessible including Arica, Chile and Matarani, Peru.

Bolívar Mine, located within the municipality of Antequera is important to the neighboring communities of Antequera, Charcajara, Chapana and Quea Queani. The community of Antequera is immediately adjacent to the mine site and the largest community in the area of influence. The town is inhabited mainly by mine workers. Historically, it has been an area of intensive zinc, lead and tin mining so support, and service businesses have established themselves to serve the mine and its employees.

5.2 Climate
 and Physiography

Geographically Bolivar is part of the Cordillera de Azanaques, which in turn is part of the Cordillera Central or Meridional, located on the slopes of Cerro El Salvador (4560 masl).

The climate is arid to semi-arid and included in the "Puna" eco-region which extends south of the 18th parallel, from which aridity increases. Precipitation averages 450 mm per year with temperatures ranging from a maximum of 24°C to a minimum of -13°C. The topography of the area is moderately rugged, with mountain ranges cut by the Antequera canyon, through which the Chapana River runs.

The project lies within the Altiplano, an extensive volcanic plateau where regional flora includes dry plants such as queña, or quenua, which is a dwarf tree found at higher elevations. In addition, abundant yareta is present which is a species of moss that grows on the ubiquitous rocky surfaces.

Faura such as llamas and alpaca are the most distinctive animal populations in the area and are mostly domesticated with wild populations being fairly rare. Another similar animal, the vicuna, exists in the region however it is thought to be on the verge of extinction. In the air, condors inhabit the remote caves of the high peaks, flying over the plateaus.

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5.3 Infrastructure

In addition to a network of paved roads, Bolivar also has access to rail for concentrate transport. Concentrate is hauled 22 km to the Poopó railway station in a convoy of 15 dump trucks, each with approximately 14 tonnes (t) of cargo. The trucking service is contracted from local owners to help support the economic development of neighboring communities.

Poopó also has a warehouse and storage yards. Storage is divided into 10 compartments to separate concentrate batches, and yard area is available for drying and blending if needed. Truck and rail scales are also available at the yard.

Electric power for Bolivar is supplied by the national grid (ELFEO S.A. - Managed by ENDE) from about 2 km from the Mine at Catavi substation via a 69 kV transmission line to the Bolivar step-down substation. The Bolivar electrical distribution system consists of two main feeders: one at 25 kV for the Concentrator Plant and another at 6.6 kV for the mine and the camp. A 2.8 MW diesel backup at the mine is available for the plant thickeners and mine dewatering.

Bolivar produces an excess of water from the underground mine. A total of approximately 150 l/s is pumped from the mine and is treated in separate plants for two different uses: one for potable water at the mine and surrounding communities, the other for industrial use in the mine and process plant. The balance of water is discharged to the Pampitas River.

Bolivar Mine has access to modern communications via Internet, e-mail, and communication by broadband radio and cell phone.

Bolivar Mine has one active Tailing storage Facility (Queaqueani) and one inactive (Antiguo). Both are managed in compliance with the guidelines of the Canadian Dam Association (CDA) and the "Global Industry Standard on Tailings Management" issued by the UNEP (United Nations Environment Programme), ICMM (International Council on Mining and Metals), and PRI (Principles for Responsible Investment) in August 2020. This program includes third party Verification Assessments (Dam Safety Assurance Assessment). In response to findings from these assessments, and to mitigate risks of failure, risk management tools have been developed to improve management systems for the active TSF. For the inactive facility, monitoring and maintenance have been improved and follow good practice.

The "Queaqueani" tailings storage facility started operations in April 2007. This facility was designed by Canadian engineering firm AMEC and is located 3.5 km to the north of the operation. Hydraulic tails of 25-29% solids are beached along the upstream side of the dam crest and water is reclaimed from the southwest sector of the reservoir and pumped via HDPE pipelines back to the water treatment plant.

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**Figure 5-1: Aerial Photography of the Queaqueani TSF**

Source: Glencore (2021)

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| 6 | History |

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6.1 Management
 and Ownership

The Bolivar deposit was originally discovered in 1765 by Gonzalo de Antequera and mined primarily for silver until the late 19th century. As the world silver market began to collapse in the 1880's and early 1890's, a major shift to tin mining began to meet the increased demand of the industrialized world. Wealthy tin barons in Bolivia held much influence in national politics until they were marginalized by the nationalization of the three largest tin mining companies following the 1952 revolution. In March 1971, the government returned Bolívar Mine to the newly formed Bolivian Mining Corporation (COMIBOL), under whose management it operated until mid-1993. Bolivian miners played a critical part in the country's organized labor movement from the 1940s to the 1980s and continue to be an important stakeholder.

Bolivar Mine operates under the management of Sinchi Wayra S.A. (formerly COMSUR S.A.), under a joint venture agreement with the Bolivian government (COMIBOL) named Illapa S.A. Sinchi Wayra S.A. and (COMIBOL) entered this Joint Venture Agreement (the Illapa JV) on December 4, 2014, by virtue of Public Deed N° 1356/2014. The duration of the Illapa JV is 15 years, with the possibility of extending the term for the same duration. Under the Illapa JV, ownership is 55% COMIBOL and 45% Illapa. In the event of any disagreement, the Illapa JV has an arbitration clause with seat in La Paz, Bolivia, under UNCITRAL Rules.

On October 11, 2021, Santacruz entered into the Definitive Agreement with Glencore whereby Santacruz agreed to acquire a portfolio of Bolivian silver assets from Glencore, including the following: (a) a 45% interest in the Bolivar Mine and the Porco Mine, held through an unincorporated joint venture between Glencore's wholly-owned subsidiary Contrato de Asociación Sociedad Minera Illapa S.A. (Illapa) and COMIBOL, a Bolivian state-owned entity; (b) a 100% interest in the Sinchi Wayra S.A. (Sinchi Wayra) business, which includes the producing Caballo Blanco mining complex; (c) the Soracaya exploration project; and (d) the San Lucas ore sourcing and trading business (the Assets).

On March 21, 2022, Santacruz completed the purchase of the Assets, including Glencore's interest in the Bolivar Mine.

On May 10, 2023, Santacruz and Glencore entered into a framework agreement to amend certain terms of the transaction documents pertaining to the acquisition of the Assets. On March 28, 2024, Santacruz and Glencore entered into the binding Term Sheet which amends the terms of certain deferred consideration and ancillary documents pertaining to the acquisition of the Assets.

Santacruz thus owns 100% of the two Bolivian operating companies Illapa and Sinchi Wayra, which in turn own 45% of the Bolivar Mine, 45% of the Porco Mine, and 100% of the Caballo Blanco mining complex.

Sinchi Wayra is the operating company for all three active mining operations, including the Bolivar Mine.

SANTACRUZ SILVER MINING LTD. \| BOLIVAR TECHNICAL REPORT PAGE 6-1

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**Figure 6-1: Project History**

Source: Glencore (2021)

6.2 Historical
 Resource Estimates

Glencore's Resources & Reserves report as of December 31, 2020 disclosed Bolivar, Porco and Caballo Blanco historic mineral resource statements as well as historic mineral reserve estimates as of December 31, 2020. Given the source of the estimates, Santacruz considers them reliable and relevant for the further development of the Project; and accordingly, they should be relied upon only as a historical resource and reserve estimate of Glencore, which pre-dates Santacruz's agreement to acquire the Assets however, the Company is not treating the historical estimates as current Mineral Resources or Mineral Reserves.

**For all historical resources and historical mineral reserves reported within Section 6 in Table 6-1 and Table 6-2, a "Qualified Person" as per NI 43-101 has not done sufficient work to classify the historical estimate as current Mineral Resources or Mineral Reserves and Santacruz is not treating the historical estimate as current Mineral Resources or Mineral Reserves. Further drilling and resource modelling would be required to upgrade or verify these historical estimates as current mineral resources or reserves for the respective assets.**

The historical resources have been reported for Bolivar as of December 31, 2020 at a Zinc Equivalent (ZnEq) cut-off grade 2% as follows in Table 6-1.

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**Table 6-1: Historic Mineral Resource Estimate (2020)**

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| &nbsp;&nbsp;&nbsp;**Category** | **Tonnes** | **Silver** | **Zinc** | **Lead** |
| &nbsp;&nbsp;&nbsp;**Category** | **(Mt)** | **(g/t)** | **(%)** | **(%)** |
| &nbsp;&nbsp;&nbsp;Measured Mineral Resources | 1.4 | 308 | 12.70% | 1.40% |
| &nbsp;&nbsp;&nbsp;Indicated Mineral Resources | 1 | 283 | 12.20% | 1.30% |
| &nbsp;&nbsp;&nbsp;Inferred Mineral Resources | 5.4 | 350 | 9.00% | 0.90% |

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Notes:

1) The Mineral Resources have been calculated in accordance with definitions in accordance with the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), the 2016 edition of the South African Code for Reporting of Mineral Resources and Mineral Reserves (SAMREC) and the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves (2014).

2) The ZnEq = (Zn% + (Pb% \* 0.50) + (Ag g/t \* 0.0268)).

3) The Mineral Resources have been calculated in accordance with definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum on August 20, 2000. Employees of Glencore have prepared these calculations.

4) Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not account for a resource's mineability, selectivity, mining loss, or dilution.

5) An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

6) All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

7) Reported in-situ Mineral Resources do not consider mineral availability by underground mining methods.

8) Historical Mineral Reserves and Resources are inclusive of Mineral Reserves shown at 100% ownership.

Source: Glencore (2020)

For comparison, Table 6-2 shows the Measured and Indicated Resources for 2018 and 2019, respectively which reflects mining depletion and changes in classification due to additional drilling and sampling during operations. The Indicated and Inferred Resources are reported at a 2% ZnEq cut-off grade.

**Table 6-2: Historic Mineral Resource Estimate for 2018 and 2019**

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| | **Measured** | **Measured** | **Indicated** | **Indicated** | **Total** | **Total** |
| | **2019** | **2018** | **2019** | **2018** | **2019** | **2018** |
| Ore (Mt) | 1.6 | 1.5 | 1.1 | 1.3 | 2.6 | 2.8 |
| Zinc (%) | 13.2 | 14 | 13 | 13.7 | 13.1 | 13.9 |
| Lead (%) | 1.4 | 1.6 | 1.3 | 1.3 | 1.4 | 1.5 |
| Silver (g/t) | 326 | 343 | 293 | 336 | 313 | 340 |

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Source: Glencore (2020)

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The mineral reserves have been reported for Bolivar as of December 31, 2020 at a Zinc Equivalent cut-off grade 2% as follows in Table 6-3.

**Table 6-3: Historic Reserve Estimate (2020)**

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| **Category** | **Tonnes** | **Silver** | **Zinc** | **Lead** |
| **Category** | **(Mt)** | **(g/t)** | **(%)** | **(%)** |
| Proved Reserves | 0.8 | 251 | 9.40% | 1.10% |
| Probable Reserves | 0.7 | 215 | 8.60% | 0.90% |

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Notes:

1) The Mineral Resources have been calculated in accordance with definitions in accordance with the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), the 2016 edition of the South African Code for Reporting of Mineral Resources and Mineral Reserves (SAMREC) and the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves (2014).

2) The ZnEq = (Zn% + (Pb% \* 0.50) + (Ag g/t \* 0.0268)).

3) The Mineral Resources have been calculated in accordance with definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum on August 20, 2000. Employees of Glencore have prepared these calculations.

4) All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

5) Historical Mineral Reserves are shown at 100% ownership.

Source: Glencore (2020)

6.3 2018-2022
 Production

**Table 6-4: Production at the Bolivar Mine, 2018 to 2022**

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| **Year** | **Tonnes** | **Zn%** | **Pb%** | **Ag g/t** |
| 2018 | 253027 | 8.15 | 0.79 | 200 |
| 2019 | 219217 | 7.14 | 0.63 | 172 |
| 2020 | 175806 | 7.75 | 0.69 | 190 |
| 2021 | 259192 | 7.53 | 0.69 | 198 |
| 2022 | 268659 | 7.05 | 0.65 | 222 |

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7 Geological Setting and Mineralization

7.1 Introduction

The geological setting and framework detailed herein, is primarily referenced from the definitive publications for Bolivian geology such as Redwood (2021) and Arce-Burgoa (2009).

7.2 Geological
 Tectonic Framework and Regional Geology

The geologic-tectonic framework of Bolivia can be divided into six physiographic provinces. From east to west (Figure 7-1), these are the Precambrian Shield, the Chaco-Beni Plains, the Sub Andean zone, the Eastern Cordillera (or Cordillera Oriental), the Altiplano, and the Western Cordillera (or Cordillera Occidental). The latter four provinces are elements of the Mesozoic-Cenozoic Andean orogen in Bolivia (Arce-Burgoa, 2002, 2007), which hosts an abundance of mineral deposits (Figure 7-2). The landward Precambrian Shield, exposed far to the east of the Andes, represents an area of great mineral potential, but has had limited exploration.

**Figure 7-1: Regional Geology Setting**

Source: Arce-Burgoa (2009)

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**Figure 7-2: Regional Geology Setting with Deposit Types**

Source: Arce-Burgoa (2009)

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Rocks of the Precambrian Shield in easternmost Bolivia have commonly been hypothesized to represent the southwestern part of the Amazon craton, covering an area of approximately 200,000 square kilometre (km<sup>2</sup>), or 18% of Bolivia. The lithological units are mainly Mesoproterozoic medium and high-grade metasedimentary and meta-igneous rocks, which have been covered by Tertiary laterites and Quaternary alluvial basin deposits. Earlier studies have referred to this as the Guaporé craton, but Santos et al. (2008) proposed that are not basement rocks belonging to the craton proper but rather, that they represent the 1.45–1.10 Ga Sunsas orogen, formed along the craton margin. Major tectonic events in the orogen are dated 1465– 1420, 1370–1320, and 1180–1110 Ma. The subsequent Brazilian tectonism (ca. 600–500 Ma) only had minor effects on the orogen (Litherland et al., 1986, 1989). Subsequent Brazilian tectonism (ca. 600–500 Ma) had only minor effects on the orogen (Litherland et al., 1986, 1989).

The Chaco-Beni plains, located in the central part of the country, cover 40% of Bolivia. The topography is dominated by the southwestern Amazon basin wetlands. Lying below 250 m elevation the wetlands offer little relief or outcrop. These extensive plains are part of the foreland basin of the Central Andes and include a 1 to 3 km thick sequence of Cenozoic foreland alluvial sediment in the west and much thinner accumulations atop a broad forebulge to the east (Horton and DeCelles, 1997). This sequence overlies Tertiary red-bed sediments that are >6 km thick which in turn rest unconformably on the Precambrian crystalline basement to the east and Paleozoic and Mesozoic sedimentary rocks to the west. The alluvial accumulations are products of several Neogene to Holocene episodes of post-kinematic and epeirogenetic isostatic adjustment in the Eastern Andes and its piedmont.

Rocks of the Bolivian Andean orogen include the Subandean zone, Eastern Cordillera, Altiplano, and the Western Cordillera, represent approximately 42% of Bolivia. These physiographic provinces form a series of mountain chains, isolated mountain ranges, and plains, with a north-to-south trend (Ahlfeld and Schneider-Scherbina, 1964). This part of the orogen has a length of 1,100 km, with a maximum width of 700 km, and an average crustal thickness of 70 km. The orogen displays a distinct oroclinal bend in the main fabric orientation at the Arica Elbow (18°–19°S).

The Subandean zone is the thin-skinned, inland margin of an orogen-parallel fold-and-thrust belt, which is partly covered by sediments of the western side of the active foreland basin. It is characterized by north- south- trending, narrow mountain ranges with elevations between 500 and 2,000 m. Rock types in this province include Paleozoic siliciclastic marine and Mesozoic and Tertiary continental sedimentary rocks.

The Eastern Cordillera, the uplifted interior of the Andean thrust belt, includes poly deformed Ordovician to Recent shale, siltstone, limestone, sandstone, slate, and quartzite sequences. These mainly Paleozoic clastic and metamorphic rocks have an approximate area of 280,000 km<sup>2</sup> and represent flysch basin sediments that were deposited along the ancient Gondwana margin and first deformed in the middle to late Paleozoic. After Permian to Jurassic rifting, they were uplifted to high elevation and folded and thrusted again during Andean compression, which may have begun as early as Late Cretaceous (McQuarrie et al., 2005).

The Altiplano is comprised of a series of intermontane, continental basins with a combined length of approximately 850 km, an average width of 130 km, and an area of approximately 110,000 km<sup>2</sup>. The basins have been uplifted to form a high plateau at elevations between 3,600 and 4,100 m. Geomorphologically, the province consists of an extensive flat plain that is interrupted by isolated mountain ranges. Crustal shortening, rapid subsidence, and, with concurrent sedimentation accumulated a sequence thickness of as much as 15 km during the Andean orogeny (Richter et al., in USGS and GEOBOL, 1992). Basin fill was dominated by erosion of the Western Cordillera during Late Eocene-Oligocene, but Neogene shortening in the Eastern Cordillera and Subandean zone led to a subsequent dominance of younger sediments derived from the east (Horton et al., 2002).

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The Western Cordillera consists of a volcanic mountain chain that is 750 km in length and 40 km in average width, with an area of about 30,000 km<sup>2</sup>. Late Jurassic and Early Cretaceous flows and pyroclastic rocks and marine sandstone and siltstone sequences dominate the Cordillera in Peru and Chile. Lesser Late Cretaceous continental sediment was deposited above the marine rocks and, simultaneously, large granitoid plutons, many of which are associated with large porphyry orebodies, were emplaced along the coasts of adjacent Peru and Chile. In Bolivia, the province is dominated by high andesitic to dacitic strata volcanoes, erupted since ca. 28 Ma, which define the narrow, main Central Andes magmatic arc.

7.2.1 Eastern
 Cordillera

The Bolivar, Porco and Caballo Blanco deposits are located in the central part of the Eastern Cordillera, a thick sequence of Paleozoic marine siliciclastic and argillaceous sedimentary rocks deposited on the western margin of Gondwana and deformed in a fold-thrust belt. There were two major tectonic cycles in the Paleozoic: The Lower Paleozoic Famatinian cycle (the Tacsarian and Cordilleran cycles of Bolivia), and the Upper Paleozoic Gondwana cycle (Subandean cycle of Bolivia).

The late Precambrian supercontinent broke up with the opening of the southern Iapetus Ocean and the spreading of Laurentia away from Gondwana in the latest Precambrian or early Cambrian (Figure 7-3, Figure 7-4 and Figure 7-5). Ocean closure and collision of Laurentia and the South American segment of Gondwana during the Ordovician formed the Famatinian orogenic belt of NW Argentina (Dalla Salda et al., 1992a) which has been correlated with its probable Laurentian equivalent, the Taconic event of the Appalachian orogen (Dalla Salda et al., 1992b). The Famatinian belt records extension in the latest Precambrian with establishment of subduction during the Cambrian and closure of the ocean basin and continent-continent collision in the Ordovician (480-460 Ma) (Figure 7-6). The Pre-Cordillera Terrane carbonate platform of western Argentina, which has faunal similarities with eastern North America, may be a sliver of eastern Laurentia detached in the late Ordovician when Laurentia separated from Gondwana again (Dalla Salda et al., 1992a; b) (Figure 7-7 and Figure 7-10).

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**Figure 7-3: Plate Tectonic Reconstructions of the Neoproterozoic Subcontinent and the Late Precambrian Supercontinent after the Opening of the Southern Iapetus Ocean**

Source: Hoffman (1991)

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**Figure 7-4: Plate Tectonic Reconstructions of the Neoproterozoic and Late Precambrian Subcontinents**

Source: Story (1993)

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**Figure 7-5: Paleogeography of SW Gondwana Margin in the Early Ordovician**

Source: Forsythe et al, (1993)

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**Figure 7-6: The Famatinian – Taconic Orogen in the Middle Ordovician**

Source: Dalla Salda et al, (1992b)

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**Figure 7-7: The Ordovician of the Central Andes (Cunningham et al., 1994b)**

Source: Forsythe et al, (1993)

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7.2.2 Tacsarian
 Cycle (Upper Cambrian to Ordovician)

During the Upper Cambrian to Caradoc Tacsarian Cycle a broad marine back-arc rift basin existed in Bolivia-Peru with its axis in the Eastern Cordillera. There was oceanic spreading in the southern part of the basin (Figure 7-6), the Puna Straits in NW Argentina, preserved as ophiolites, with intrusions of basic dikes and sills further north in the Bolivian basin. A possible magmatic arc on the Arequipa Terrane to the west of the basin, represented by calc-alkaline plutonic and volcanic rocks dated at 487-429 Ma (Mpodozis & Ramos, 1989), separated the back arc basin from a forearc. The Arequipa microplate swung about a hinge to the NW to form the Puna Straits and Bolivia-Peru back arc basin, as a Gulf of California-type basin (Sempere, 1991) or Japan-type basin (Forsythe et al., 1993). This was bordered to the east by another subduction-related magmatic arc in western Argentina, the Puna arc, and its southward continuation, the Sierras Pampeanas magmatic arc, represented by a granitoid belt (Mpodozis & Ramos, 1989). The Ocloyic Orogeny closed the Puna Straits Ocean basin during the Llanvirn-Caradoc, as evidenced by granitic magmatism.

In SW Bolivia, the sedimentary sequence begins with shallow marine clastic sediments of the basal Tremadoc transgression, which grade upwards into open marine thick graptolitic shales intercalated with subordinate turbidites and slumps of late Cambrian – Llanvirn age. The base of this super sequence outcrops in several localities along the Cochabamba-Chapare Road (central part of the Eastern Cordillera), which were described as part of the Limbo Group and of other Cambrian formations (Castaños & Rodrigo, 1978).

The majority of the sequence consists of thick and monotonous Lower to Middle Ordovician shale beds, with subordinate siltstones and sandstones are part of the Cochabamba Group, which from base to top includes the Capinota, Anzaldo, and San Benito Formations. In the southern part of Tarija, the sequence base includes shallow marine clastic rocks. These grade upward to thick, marine graptolitic shales with subordinate Cambrian turbidites of the Condado, Torohuayco, and Sama Formations (Castaños & Rodrigo, 1978). Farther north, the sequence consists of thick graptolitic and cephalopodic shales: which have localized the main decollement zone during the Neogene, and consequently older rocks are rarely exposed in the Bolivian Andes.

In southern Bolivia the shales were affected by the Ocloyic deformation with development of folding, cleavage and schistosity. The effects of this orogeny diminished to the east and north, and are not identified north of 20°S. In the north and east, the basin developed as a marine foreland basin during deformation which was infilled with the deposition of a thick, monotonous sequence of shallowing upward, shallow marine siliciclastic interbedded sandstone and shale in the Middle to Late Ordovician (Llanvirn - Caradoc) (Sempere, 1990a, b, 1991, 1993).

7.2.3 The
 Cordilleran Cycle (Late Ordovician to Late Devonian)

During the Late Ordovician to Late Devonian Cordilleran Cycle (Chuquisaca Super sequence), the Bolivia-Peru basin occupied a back-arc setting, then from the late Llandovery formed a marine foreland basin. These basins lay east of the Puna arc on the Arequipa block, which continued south as the Sierra Pampeanas magmatic arc granitoid belt until the Early Carboniferous. These arcs were related to an eastward-dipping subduction regime east of the Precordillera. The cratonic Chilenia Terrane of the Cordillera Frontal collided with the continental margin in the latest Devonian to early Carboniferous, and the collision caused intense deformation in the western Precordillera. (Mpodozis & Ramos, 1989; Ramos et al., 1986; Ramos, 1988; Sempere, 1993).

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The Cordilleran cycle began in Bolivia with rapid deepening of the basin as a back-arc with black pyritic-shale deposition (Tokochi Formation) followed by resedimented glacial-marine diamictites sediments in the Ashgill (Cancañiri Formation) with rare thin fossiliferous limestones. These are overlain by thickly bedded, thinning-upward turbidites (Llallagua Formation) and/or dark shales with minor turbidites (Uncía/Kirusillas Formation) from late Llandovery to Ludlow. Deposition in the basin was controlled by active normal faulting. Facies succession was induced by a major glacio-eustatic sea level low (the Ashgillian ice age) which developed between two maximum flooding episodes. The Uncía/Kirusillas Formation was the first of three main shallowing-up megasequences, which began with thick dark shales and ended with sandstone dominated units, of late Llandovery - Lochkovian, Pragian - early Giventian and late Giventian - middle Famennian ages. These were deposited in a large subsiding marine foreland basin covering the Bolivian Andes, Subandean zone and Chaco-Beni plains, reaching as far as the SW edge of the craton where they onlap the Chiquitos Supergroup (Litherland et al., 1986). This interval was a time of onlap towards the northeast and of deposition of major hydrocarbon source rocks in Bolivia. (Sempere, 1990a; b;1991; 1993).

The Cordilleran Cycle is generally considered to have been terminated by the Late Devonian to Early Carboniferous Hercynian Orogeny, which has been defined in Perú where the effects are much more evident. The presence of Hercynian orogenesis in Bolivia has been questioned however, due to Late Triassic U-Pb zircon age dates of 225 Ma (Farrar et al., 1990) for both foliated and weakly foliated facies of the Zongo-Yani granite, and by implication its wide metamorphic aureole, which was assigned an "Eohercynian" age by Bard et al. (1974).

7.2.4 Subandean
 (Gondwana) Cycle (Upper Paleozoic)

The Upper Paleozoic Gondwana Cycle was characterized by establishment of eastward subduction along the new Pacific margin west of Chilenia (Cordillera Frontal) and development of a broad forearc accretionary prism, which contains blue schists and ocean floor fragments. A magmatic arc lay to the east of the subduction zone. This cycle was terminated by deformation during the lower Triassic Gondwanide orogeny, the effects of which southward. (Mpodozis & Ramos, 1989; Ramos et al., 1986; Ramos, 1988).

In Bolivia, the Upper Paleozoic Subandean Cycle is characterized by the Late Devonian (Late Famennian) - Early Carboniferous (Mississippian) Villamontes Supersequence, deposited in the Subandean zone, Chaco and Titicaca basin, is mainly marine and comprises mudstone, black shale, sandstone, coal, glacial-marine sediments, diamictites and slumps, the stratigraphy of which is conflictive due to rapid facies variations (Sempere, 1993). The Eastern Cordillera was emergent. This was a period of high epeirogenic activity and synsedimentary tectonic instability coeval with the Hercynian deformation in Peru. Sempere (1993) considers the Mississippian sedimentation to have been the culmination of the Silurian - Devonian evolution.

Subsequently the Late Carboniferous (Pennsylvanian) - Early Triassic Cueva Supersequence was developed during a period of low subsidence and subtropical climate. In western Bolivia there was a shallow carbonate platform in the Titicaca Basin (Copacabana Formation) with deposition of white littoral-fluvial-eolian sands and evaporites on the eastern platform in the Subandean zone. The compressional Gondwana (Late Hercynian) deformation in the middle Permian of the Eastern Cordillera of Peru had weak effects in the Eastern Cordillera of Bolivia. This deformation was accompanied by transgression of the marine carbonate platform to the east. Post-orogenic calc-alkaline magmatism in the Early - Middle Triassic evolved in the late Middle Triassic toward continental tholeiitic compositions, reflecting the extension which initiated the Andean Cycle (Sempere, 1990a; b; 1993; Soler & Sempere, 1993).

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7.2.5 The
 Mesozoic to Cenozoic Andean Cycle: The Serere, Puca and Corcoro Supersequences

The Andes developed during the Mesozoic to Cenozoic Andean Orogenic Cycle. Distension in the Middle to Upper Triassic related to the initial break up of Gondwana marked the start of the Andean Cycle. In the first part of the cycle, from Triassic to mid Cretaceous, an eastward dipping subduction zone existed along the length of the Pacific margin of Peru and Chile with a magmatic arc and back-arc basin, which in some segments had oceanic crust. In Chile, the arc was superimposed on the Late Paleozoic accretionary prism and an eastward younging coastal batholith intruded. (Cobbing, 1985; Dalziel, 1986; Mpodozis & Ramos, 1989).

During the Middle Triassic - Middle Jurassic, the Andean region of Bolivia was part of a stable cratonic regime. An initial rifting process of late Middle Triassic age developed in several areas, and numerous narrow grabens were filled by fluvio-lacustrine red beds and evaporites, accompanied by tholeiitic to transitional basalts (Sempere, 1990a; 1993; Soler & Sempere, 1993). Cessation of rifting in Bolivia was probably a consequence of a regional tectonic reorganization at about 220 Ma, which probably marked the resumption of subduction along the Pacific margin. The subsequent Late Triassic - Middle? Jurassic onlapping sedimentation of fluvial and eolian sands was probably controlled by post-rift thermal subsidence. The environment was of sandy deserts on the craton, akin to the Arabian Shield (Sempere, 1990a; 1993). These deposits of the Serere Supersequence occur in the Eastern Cordillera and Subandean Zone.

Since the Late Jurassic, Bolivia has been part of the Pacific subduction regime. This was marked by a Kimmeridgian rifting event in Bolivia, the "Araucana Phase", with extrusion of alkaline basalts which initiated the Puna Supersequence (Sempere et al., 1989; Sempere, 1993; Soler & Sempere, 1993). Bolivia was set in a back arc setting to the east of the Pacific margin arc and back-arc basin, with deposition of coarse clastic continental sediments and alkali basalts in the Potosí and Titicaca basins in a distensive regime related to a transtensional continental margin until the Aptian (Sempere et al., 1989).

The Upper Cretaceous and Cenozoic of Perú - Chile was characterized by a subduction-related continental magmatic arc with no back-arc basin. In Peru, the 110 - 60 Ma Coastal Batholith was emplaced into the Jurassic - Early Cretaceous back-arc basin volcanic pile between the Mochica and Incaic 1-fold phases (Pitcher et al., 1985). At the same time in the Central Andes the magmatic arc migrated eastwards. Large parts of the forearc zone and Mesozoic arc were removed during the Cretaceous and Tertiary, either by subduction erosion or by longitudinal strike-slip faults such as the Atacama Fault (Mpodozis & Ramos, 1989).

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The mid Cretaceous compressive event inverted the Tarapacá back-arc basin of north Chile (Late Triassic - Early Cretaceous) to form the proto-Domeyko Cordillera fold-thrust belt (Mpodozis & Ramos, 1989). In Bolivia, sedimentation of the Puca Supergroup continued in a distal external foreland basin, with deposition controlled by rifting and eustatic marine transgressions from the NW. The sequence is transgressive with successively younger units covering greater areas and reaching a total thickness of up to 5,600 m in the Sevaruyo area. The strata consist of fine red-bed sediments, evaporites and alkali basalts, with marine red shales in the Aptian and marine carbonates in the Cenomanian, Campanian and Maastrichtian. (Riccardi, 1988; Sempere et al., 1989; Soler & Sempere, 1993). The end of the Puca Supersequence is marked by an important unconformity developed at the end of the Paleocene, followed by deposition of thick red beds in the Altiplano and Eastern Cordillera in an external continental foreland basin during the Eocene and Oligocene (53 - 27 Ma; Sempere 1990a).

The Cenozoic evolution of Bolivia was dominated by considerable horizontal shortening (Sempere, 1990). Cenozoic basins of the Corocoro Supersequence developed in the Cordillera and in the plains in that time are related to the uplift of the Andes. During the Lower Paleocene-Lower Oligocene, a foreland basin formed east of the Andes. A thickening of the crust enabled the accumulation of 2.5 km of red beds in the Altiplano and Eastern Cordillera (Sempere, 1995).

7.2.6 The
 Andean Orogeny

The first major deformation in the Andean Cycle in Bolivia occurred during the Late Oligocene to Early Miocene (27-19 Ma) when the orogenic front jumped from west of Bolivia to the Eastern Cordillera, and the Bolivian Andes started to develop as a mountain belt. Major crustal shortening by thrusting occurred in the Eastern Cordillera, and deformation of the Subandean Zone also began. Since the Late Oligocene, the Altiplano has functioned as an intermontane foreland basin with deposition of thick continental sediments, with smaller intermontane basins in the Eastern Cordillera.

The external foreland basin moved east to the Subandean - Llanura (Beni-Chaco) Basin. The second major period of thrusting occurred between 11-5 Ma. Thrusting is mainly eastward-verging towards the foreland, with an important west-verging back-thrust belt in the eastern Altiplano and western side of the Eastern Cordillera.

7.2.7 Mesozoic
 to Cenozoic Magmatism

Extension-related granites were intruded in the Cordillera Real in the Triassic–Jurassic (227-180 Ma) (Everden et al., 1977; McBride, 1977; Grant et al., 1979; Farrar et al., 1990).

Alkaline volcanic activity was initiated in the Late Oligocene (28-21 Ma) in the Western Cordillera and western Altiplano, coincident with the first major period of deformation. At the same time granitoid plutons intruded in the southern part of the Cordillera Real (Illimani, Quimsa Chata, Santa Vera Cruz) with related tin-tungsten-silver-lead-zinc-polymetallic mineralization (28-20 Ma). Similar deposits also developed to the south as far as Potosi, such as Colquiri and Chicote Grande. These deposits are hosted by Paleozoic sediments and related to buried plutons of this age. The main period of magmatism was the Middle Miocene (17-12 Ma) with an eastward "breakout" of magmatism in an unusually broad arc across the Western Cordillera, Altiplano and Eastern Cordillera, generally forming small extrusive (domes) and intrusive (stocks, sills) bodies. Further magmatism occurred across this wide arc during the Late Miocene (10-5 Ma) during the second main period of crustal shortening. This was characterized by stratovolcanoes, ash-flow calderas, and major ignimbrite shields such as Los Frailes and Morococala in the Eastern Cordillera. (Baker, 1981; Baker & Francis, 1978; Evernden et al., 1977; Grant et al., 1979; McBride et al., 1983; Redwood, 1987; Redwood & Macintyre, 1989; Soler & Jimenez, 1993; Thorpe et al., 1982).

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7.3 Local
 Geology

The Bolivar Mine is located in the Cordillera de los Azanaques, forming the western edge of the Cordillera Oriental, which is detached from the Cordillera de los Frailes, belonging to the group of central mountain ranges. Characterized by the essence of undulating plateaus, outstanding mountains parallel to the course of the Andes, with elevations that vary between 3,400 and 4,600 masl. The area is part of the polymetallic belt of the altiplano and the Cordillera Occidental.

It is in Cenozoic rocks of the middle to upper Silurian, constituted almost entirely by marine sediments of variable depth: from infraneritic, neuritic and bathyal environments.

Stratigraphically, during the Silurian (Lower Silurian) Middle began the deposition, with the formation of sediments of glacial-marine origin, which in Bolivian territory reaches the central part, being so that in areas surrounding the Bolívar mine it is documented by the presence of the Cancañiri Formation (Figure 7-8 and Figure 7-9). Likewise, the sequence of deposition continued with the formation of sandy and clay materials giving rise to the sandstones and shales corresponding to the members of the Lallagua and Uncía Formation.

These stratigraphic sequences have a considerable thickness forming the Silurian formations, it is made up of fine materials with sands and conglomerates (Uncía case) with leads to have an idea of the behavior of the sea during the deposition of these materials, which correspond to stages of regressive and transgressive character.

Following the formation of the Silurian rocks, the sediments of the region were folded regionally during the Upper Paleozoic by compressive dominant tectonics (Hercynic Orogeny) and at the end of the Cretaceous and/or Lower Tertiary by the Andean Orogeny. In the Bolivar area, this Orogenic cycle ended with an intense Pliocenaean folding and tectonics of the region, giving rise to the presence of folds with very inclined dips.

The magmatic activity observed regionally, represented by the stocks of Sugar Loaf, China Chualla, Chualla Grande, etc., called "Andean Andesitic Inter-Andean Volcanism", plays an important role in the geological history as it constitutes the different Miocene-Pliocene age intrusions.

The geomorphological features presented by the study area are conditioned by the climatic events that occurred during the Pleistocene, in which glacial activity models the landscape, where glacial cirque and moraine can be observed and fluted surfaces. The presence of large alluvial plains and terraces that are observed in the western part of the area, are related to the existence of "Minchin Lake", of contemporary age to the Pleistocene glaciation. Recent Quaternary sediments were deposited in a discordant form on the folded and failed Silurian rocks.

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**Figure 7-8: Property Geology of Bolivar (Section A-A')**

Source: Glencore (2020)

**Figure 7-9: Section A-A' Property Geology of Bolivar**

Source: Glencore (2020)

The Bolivar deposit is located in the Cañadón Antequera or Avicaya-Bolivar district about 85 km southeast of Oruro, together with the Martha, Totoral, and Avicaya deposits (Figure 7-10).

The district is underlain by the Silurian Llallagua and Uncía Formations that consist of thickly bedded turbidites and black shales, respectively. These are folded into the NW-striking El Salvador anticline and there are NW-trending thrust faults and NE-trending strike-slip faults. The felsic porphyry stocks of China Chualla, Chualla Grande, Pan de Azúcar, Pepito, and Chuallani. were intruded in the Miocene. These have narrow contact metamorphic aureoles, with tourmaline-rich hornfels and quartzites. There are also several porphyritic cupola-like bodies and dikes present in the tourmaline- and quartz-rich zones near the Chualla Grande stock. The stocks have not been dated but sericite from a vein selvedge at Avicaya was dated by K-Ar at: 20.5 ± 1.0 Ma, while fine grained, supergene alunite from Avicaya was dated at 6.7 ± 0.7 Ma, and fine-grained supergene jarosite from Bolivar was dated at 3.9 ± 0.7 Ma. Sugaki et al. (2003)

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A 7 km x 2 km zone of mineralization extends northeast from the Chualla Grande stock with sericite-silica-tourmaline alteration and is terminated by a N- to NW-striking reverse fault system. Within this there is a well-developed metal zonation from proximal tin veins at Avicaya, Totoral and Martha (with coarse cassiterite, quartz, tourmaline, pyrrhotite, pyrite, and arsenopyrite); medial zinc-silver veins at Bolivar (with sphalerite, microscopic cassiterite, pyrite, jamesonite); and distal lead-antimony veins (with galena, stibnite, pyrite, sphalerite, arsenopyrite) (Sugaki et al., 1981b). The zoning is Sn to Zn-Ag to Pb-Sb. It is interpreted to be the result of lateral fluid flow from the porphyry stock from south to north, together with a thermal gradient from high to low temperature.

The Bolivar zinc-silver-tin deposit is located in a polymetallic zone, approximately 7 km northeast of the Chualla Grande porphyritic stock. A series of predominantly east-west and northeast trending veins up to 2,000 m long are hosted by Silurian shales, sandstones and quartzites. The veins vary in width between 0.40 m and 4.50 m. The Bolívar vein, which is one of the main veins, has an average width of 1.25m, with a dip of 50º to 75º with a strike of 30º to 50º and is Zn-Ag-Pb rich. The Pomabamba vein, which towards the SW shows a degeneration of zinc and lead and a considerable increase in silver due to the presence of silver sulphides, has approximate widths of 3.0 m to 5.00 m with a dip of 35º to 60º and a general heading from 60º to 70º. The Nané vein, which has an average width of between 0.50 m to 2.50 m, with a dip of 40º to 60º and strike of 50º, has significant Zn-Ag-Pb mineralization, although silver is reduced towards the NE. The veins have a length of up to 1,800 m for the combined Pomabamba, Nané and Bolívar composite vein. In addition, they are mined up to Level 400 (3,600 masl) and over a vertical distance of >600 m and are delineated by drilling to Level 620 (3,400 masl) for more than 1,000 m of vertical extent.

The mineralogy of the deposit is sphalerite, galena, cassiterite, jamesonite, pyrite, arsenopyrite and marcasite in a gangue of quartz. The Bolivar paragenesis is an early, low sulfidation mesothermal Zn assemblage of quartz-pyrite-Fe-rich sphalerite, with a later intermediate sulfidation epithermal Zn-Sn-Ag-Pb-Sb assemblage of sulfides and sulfosalts including low Fe sphalerite, microscopic cassiterite, and Pb-Sb sulfosalts along with jamesonite, frankeite, teallite, tetrahedrite, and late-stage galena-siderite-quartz.

The fluids from the mineralizing events generated physical-chemical exchange and reactions during mineral deposition. Alteration halos are observed mainly at the contact between the mineralized structures and the surrounding lithologies. With the silicification present mainly in the mineral structures or in the immediate caisson rock, while argillite and chlorite are abundant adjacent to the mineralized structures.

This district is typical of the Bolivian polymetallic vein-type deposits including a genetic relationship with a Miocene felsic intrusion, even though the deposit is sediment-hosted, fault control of the veins, zoned hydrothermal alteration, and a multiphase, zoned, polymetallic, and telescoped mineral paragenesis.

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**Figure 7-10: Geological Sketch Map of the Avicaya-Bolivar District**

Source: Sugaki et al., (1981b)

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Structurally this region is characterized by the presence of a series of subparallel folds of general course N 15 degrees W with anticlines and sinclines dislocated by the intrusions of the Chualla Stocks Grande and China Chualla, located 5 km SW and 6 km to the W of Bolivar respectively and by transverse faults (Figure 7-11). The deposit is located in the northern part of the Pazña – Antequera mineralized zone, where there are numerous mineral deposits related to the Chualla Grande and China stocks.

**Figure 7-11: Structural Features and Local Geology**

Source: Glencore (2020)

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7.4 Mineralization

The Bolivar system is a network epigenetic hydrothermal base metal type veins and faults filled mineralization hosted within a variety of lithologies from volcanic tuffs to sedimentary packages. The main mineral assemblages are composed of sphalerite, marmatite, galena, silver-rich galena and silver sulfosalts. The resources are usually based on multiple structures containing several veins. The typical dimensions of these structures are ~500 m in length and ~450 m in depth with mineralization continuing to be open at depth with vein widths of between 0.2 m - 4.0 m.

The occurrence of a mineral deposit is related to two primordial aspects: 1) a hot intrusive body generating mineralizing fluids and 2) a pre-mineral geological structure receiving mineralization. The non-presence of an intrusive body very close to the deposit, makes one conclude that its formation is due to the influence of the Chualla Grande Stock, with minerals of higher temperature in its vicinity such as: 1) coarse cassiterite accompanied by quartz and tourmaline (at Totoral and Avicaya); 2) an intermediate or transitional zone with minerals of Fe-Sn (Buenos Aires, San Francisco, Venus) and; 3) an external zone where Bolívar is located with minerals of Zn-Pb-Ag-Sn.

The Pomabamba mineralization corridor has a simplified mineral paragenesis of sphalerite – pyrite – sulfosalt type of Ag-Pb-Sn that differs from the Rosario mineralization corridor whose paragenesis is sphalerite – galena – pyrite – siderite. This allows one to conclude that there is a lateral zone in the mineralization that corresponds to the central part of the deposit termed the Pomabamba corridor.

The Pomabamba vein has its own characteristics longitudinally, with a predominance of marmatite-pyrite mineralization in its northern sector and abundant pyrite in the south. Vertically and at depth the pyrite becomes more dominant and the marmatite subordinate. A remarkable aspect is that pyrite is associated or is intergrown with Ag minerals mainly to the south. Another aspect to note is that, at higher levels, there is a band of brown sphalerite that can be distinguished within the marmatite-pyrite association, whose longitudinal inlay had no preferential location.

The mineralogical characteristics of the Nané vein differ from that of Pomabamba, with predominant brown sphalerite, and galena sulfosalts in smaller proportions and generally as much sphalerite and pyrite with subordinate marmatite at depth.

The Bolivar vein, which is an extension in the north direction of the Nané, presents as sphalerite (brown), sulfosalts of Pb-Sb-Ag-Sn, marmatite and pyrite, which is enriched in Ag content as a result, characteristic of its south and center sector. However, in the north, the pyrite becomes predominant and the sphalerite-sulfosalts subordinate.

The polymetallic mineralization in the Bolivar deposit according to the paragenesis (Figure 7-12) concludes that it would have formed in different phases or mineralization events with a clear telescopic deposition:

● An early phase would comprise the mineral association of quartz – pyrite – sphalerite (of the marmatite type);

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● Sphalerite (brown) – jamesonite – boulangerite – needle-type cassiterite – galena – franckeitite would correspond to the intermediate phase of mineralization; and

● Finally, the second-generation carbonates and quartz corresponding to the late phase mineralization.

The composition and events of the mineralization illustrate that the deposit was formed from hydrothermal solutions under intermediate temperature conditions of 250º - 300ºC, and that it classifies as a meso- to epithermal hydrothermal deposit.

**Figure 7-12: Paragenesis Bolivar Site**

Source: Glencore (2020)

7.5 Bolivar
 Veins

The Bolivar Deposit is currently composed of seventeen (17) mineralized structures (Figure 7-13) with varying geometric, structural and mineralogical characteristics. These veins have been identified and developed for more than 590 m at Levels 0 and -380.

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**Figure 7-13: Bolivar Veins**

Source: Glencore (2020)

7.5.1 3000
 Veta Pomabamba (PBA)

The Pomabamba vein has been identified and developed for 590 m at Level 0 and Level -380. Diamond drilling confirms the vertical extension of the Veta Pomabamba up to 3,432 masl (200 m below Level -340), having a total vertical extension of 650 m. This mineral structure has a general strike of N 60°-70° E, with dips ranging from 35° to 60° NW in the extreme southern part. The average width of this structure varies between 0.50 m to 3.00 m, although at higher levels it exceeds 5.00 m in thickness.

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This vein is a well-defined structure in upper levels (-300 upwards) but is more irregular in the lower levels. It has a tabular geometry and has fairly regular mineralization containing abundant dark sphalerite (marmatite) but predominant pyrite. In addition, the vein is filled with clear sphalerite, lead sulfosalts, antimony, which has likely been deposited in a later phase of mineralization, in abundance at levels above -300. The presence of silver sulfosalts causes a significant increase in silver towards the southwest. Historic documentation mentions the presence of cassiterite and others at the upper levels. Zinc mineralization is significant in the upper levels while there is a marked decrease towards the lower levels and also from north to south. Silver and lead show a correlation to zinc, illustrating vertical decrease concentrations. Horizontally from south to north, this characteristic is not consistent.

7.5.2 3010
 Veta Nané (NAN)

Veta Nané has length of between 200 m to 400 m from Level 0 to Level -580. It is located between the Veins Pomabamba to the southwest and Bolívar to the northeast. It is located in an area of intense fracturing near the joint with Veta Pomabamba with the mineralization being irregularly distributed consisting of sphalerite, marmatite, stannite, cassiterite, jamesonite, zinckenite, boulangerite, pyrite, quartz and frankeite. The presence of tin minerals is restricted to the upper levels.

The overall strike of this structure is N 40°-60° E and its average dip of 50° to the northwest. The vein has an average width that varies from 0.50 m to 2.50 m and diamond drilling confirms the vertical extension of the Nané Vein to 3,415 masl (273 m below the Sublevel -330), having a total vertical extension of approximately 700 m.

7.5.3 3020
 Veta Bolivar (BOL)

Veta Bolívar extends horizontally for approximately 1,000 m of development in the upper levels and identified with drilling for up to 120 m below the last Level -340. The general strike of this structure is N 40° E, with dips that vary between 60 and 75 to the northwest, the widths vary between 0.50 and 2.00 m which thins significantly to the north. The vertical development of this structure up to the current development level is 650 m.

The mineralogy of the Bolivar vein is variable according to the area, but in general it occurs with dark sphalerite (marmatite), light sphalerite accompanied by cassiterite, galena, boulangerite, jamesonite, pyrite, quartz, arsenopyrite and siderite. In the southwest it is strongly mineralized with frankeite and jamesonite with high silver values. Cassiterite is preferentially associated with quartz and sphalerite, as individual crystals form as 15 μm needles. Silver and lead concentrations are regularly distributed both horizontally and vertically in the southern section of the vein, while they are reduced toward the northern section of the vein.

This structure is dislocated transversely by two faults called Rica and Salvadora with offsets not exceeding 25 m.

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7.5.4 3030
 Veta Ramo Bolivar

The Veta Ramo Bolivar vein is recognized from levels -140 to -300 as a splay that is detached from the main Bolivar vein joining it at about 15 m below the last recognized level. Its width can vary from 0.60 to 3.00 m.

Mineralogically it is predominantly sphalerite accompanied by significant sulfosalts, which results in high concentration of silver particularly toward the northeast.

7.5.5 3031
 Veta Ramo Bolívar Central (RBC)

The Veta Ramo Bolivar Central is located between the Nané and Bolivar SW veins, in an area of intense fracturing near the joint with Bolivar vein. The mineralization is irregularly distributed in the developed levels and is composed of sphalerite, marmatite, pyrite, and quartz. The thickness ranges from 0. 2 to 1.2 m.

7.5.6 3032
 Veta Rama (RMA)

The Veta Rama has irregular width and is located on the western flank of the Ramo Bolivar vein as a splay, it has been identified on levels -215 to -260 extending approximately 120 m. It is mineralogically comprised of marmatite, pyrite along with minor sulfosalts.

7.5.7 3033
 Veta Regina (REG)

Veta Regina developed on levels -260 and -270, is located on the roof of the Bolivar vein, has a high zinc and silver content, has thicknesses varying from 0.20 to 3.0 m and extends horizontally for approximately 90 m. The Regina vein is composed of sphalerite and sulfosalts such as jamesonite, frankeite resulting in high silver values.

7.5.8 3034
 Veta Branch One (UBI)

The Veta Branch One has been developed on levels -230 and -245 extending approximately 50 m and is composed mineralogically of sphalerite and trace sulfosalts. It has widths ranging from 0.50 to 1.10 m and is located on the roof of the Bolivar vein between Bolivar and the Ramo Bolívar.

7.5.9 3040
 Veta Bolivar SW Ramo Nané (BSW RNA)

The Veta Bolivar SW Ramo Nané has a general strike of N 45° E and dips of 55° – 65° NW. It has a length of 350 m of development at level -125 and extends 375 m to Level -380 (3,635 masl). The average width of this vein is approximately 1.50 m.

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Its mineralogy is characterized by the presence of sphalerite, marmatite, sulfosalts such as jamesonite, pyrite and quartz.

This vein has a tabular geometry in sections where it separates from the Nané vein and joins to the north with Bolívar vein. It brecciated in some areas while being massive in others. In the south it joins again to the Nané vein, where it has been named Bolivar SW beyond this point.

7.5.10 3050
 Veta Nueva (NUE)

Veta Nueva is a mineralized structure that is located on the roof of the Veta Pomabamba having development of 180 m on level -170 and sub level -185. It has been recognized at depth through diamond drilling extending for 500 m in length and vertically for 300 m from level -170. It has a variable width from 0.30 m to 1.20 m. The overall strike is N 40°E and dipping 55° – 60° NW.

This ore-filled fault structure is mineralogically made up of marmatite, pyrite, sphalerite, siderite, quartz, galena, argentite and alunite. The presence of mylonite is present up to 0.20 m in both the ceiling and floor.

7.5.11 3060
 Veta Nané Southwest (NSW)

The general strike of the Veta Nané Southwest is approximately N 60° E with dips ranging from 35° to 55° NW. The average width of the structure is 2.40 m. At Level 0 it extends 550 m however the length decreases to depth to the point at which it joins with the Pomabamaba vein (Sublevel -330) where it reduces to 60 m.

The mineral distribution is irregular and is a brecciated structure with massive sections, which has bands of sulfosalts. Mineralogically it is composed of sphalerite, marmatite (near the Pomabamba vein), sulfosalts (jamesonite, zinckenite and boulangerite), pyrite and quartz.

7.5.12 3090
 Veta Rosario (ROS)

Veta Rosario is located 1 km to the west of Mina Bolívar, in the vicinity of the town of Surumi, in the sectors called Hope and Abundance. This structure has a variable general direction, from N 20° E to N 0° E in the northeast sector, with dips ranging between 45° – 60° NW. The average width of the vein varies from 0.50 m to 2.50 m.

The structure, in surface emerges 2.2 km, and in Level 0 is recognized for 750 m to the north and 200 m to the south, while drilling has identified it horizontally for over 1,500 m. The vertical continuity of this structure is up to 3,770 m above sea level (250 m below Level 0). Currently, there is development of the Veta Rosario at Level -125 (3,866 masl) with an extension of approximately 350 m.

Mineralogically, it consists of a brecciated structure with marmatite, pyrite, quartz, galena, sphalerite, siderite and traces of sulfosalts. The distribution of mineralization along the vein is irregular, with higher zinc and silver in the central part and higher concentrations of silver and lead towards the northeast, while towards the southwest the presence of zinc is predominant.

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7.5.13 3230
 Veta Negrita (NEG)

The Veta Negrita is the most recently defined structure in the deposit being discovered in 2010. It is a very irregular structure both in strike and thickness and dipping is also irregular changing direction in several sections.

This structure is recognized from Level -125 with extending 67 m towards the southwest. It also has been developed at Sublevels -140, -155 and-170, for lengths of up to 120 m. Continuity has not yet been determined. Striking N80°E to S80°W, with dips that oscillate between 60°-70° NW, varying to the SE. This structure is brecciated throughout its length and is located in shales with intercalations of thin sandstone beds. Mineralogy includes marmatite, sphalerite, silver sulfosalts, pyrite, with scarce galena and quartz.

The width of the structure is very variable from 0.30 to 1.30 m to as high as 3.00 m. It should be noted that is characterized by significantly high zinc, making this an important structure despite the irregular character both horizontal and vertically.

7.5.14 3101
 Veta Santa Rosa 3 (SR3)

Veta Santa Rosa 3 has irregular mineralization, general strike N 60° E, average dip of 70° NW, and average width of 1.00 m to 2.00 m. The developed length is 100 m in all levels worked, and its northern extension is defined by this structure and less mineralization. It extends 300 m defined by drilling.

Santa Rosa 3 mineralogically is composed of fine-grained sphalerite, wurtzite, cassiterite, sulfosalts (jamesonite, zinkenite and boulangerite) and quartz.

7.5.15 3102
 Veta Santa Rosa 4 (SR4)

The average width of this structure varies from 0.50 m to 1.10 m, the average strike is N 80° E and the average dip of 68°NE, it has been recognized in a length of less than 150 m.

As with Santa Rosa 3 it is mineralogically composed of fine-grained sphalerite, wurtzite, cassiterite, sulfosalts (jamesonite, zinkenite and boulangerite) and quartz.

7.5.16 3070
 Veta Nané Extension (EXN)

This vein has a general E-W heading, an inclination that varies from 55° to 75°NW. It is bounded by the Pomabamba vein and Nané to the SW and Nané SW to the NE.

The mineralization is regular is made up mostly of sphalerite, wurtzite, stannine, cassiterite, jamesonite, zinckenite, boulangerite, pyrite, quartz, chalcopyrite and siderite. The average width of this structure is 1.90 m.

Towards the Level -300 is defined the vertical joint with Pomabamba and Nané SW veins delimiting it.

7.5.17 3041
 Veta Karen (KRN)

The Karen Vein is located to the southwest of the Bolivar SW vein, in an area of intense fracturing with faults that cause displacements of the vein of up to 10.00m. The mineralization is irregularly distributed in the developed levels (Level -380, Sublevel -388, Sublevel -400 and Sublevel -408) and is composed of sphalerite, marmatite, pyrite and quartz.

The thickness varying between 0.30 and 2.50 m. Developed length of up to 70 m recognized.

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8 Deposit Types

The most important ore deposits of the Eastern Cordillera are polymetallic hydrothermal deposits mined principally for Sn, W, Ag and Zn, with sub-product Pb, Cu, Bi, Au and Sb. They are related to stocks, domes and volcanic rocks of Middle and Late Miocene age (22 to 4 Ma). Mineralization occurs in veins, fracture swarms, disseminations and breccias. The deposits of the Eastern Cordillera are epithermal vein and disseminated systems of Au, Ag, Pb, Sb, as that have been telescoped on to higher temperature mesothermal Sn-W veins and, in some cases, porphyry Sn deposits. The "telescoping" is a characteristic of these deposits and is the product of the collapse of a hydrothermal system, whereby younger lower temperature fluids overprint the alteration and mineralization developed by older higher temperature fluids. The systems show a fluid evolution from a high temperature, low sulfidation state to intermediate sulfidation epithermal and high sulfidation epithermal.

A typical example is the Cerro Rico where high temperature veins at depth, with a low sulfidation assemblage of cassiterite, wolframite, pyrite, arsenopyrite, bismuthinite and minor pyrrhotite (the main tin-tungsten ore stage), are overprinted at higher levels by an intermediate sulfidation epithermal assemblage of Ag-Pb-Sb sulfosalts (the main silver ore stage), with disseminated high sulfidation epithermal silver mineralization in the upper part of the system (a major silver resource).

These polymetallic deposits have been described as Bolivian Polymetallic Vein Deposits by the U.S. Geological Survey with the following characteristics (Ludington et al., 1992; Redwood, 1993; Sillitoe et al., 1975):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Lithological
 Control. Paleozoic, Mesozoic and Cenozoic sedimentary rocks and metasediments;

2. Structural
 Control. Hinge zones of regional anticlines;

3. Subvolcanic
 Intrusions. Spatially and genetically related to stocks and volcanic rocks with 60-70 % SiO<sub>2</sub>,
 clusters of dikes and/or porphyritic domes of rhyolite, dacite, rhyodacite, or quartz latitite
 composition with alkaline tendencies. The mineralization can occur within the stocks and
 domes, in volcanic rocks (e.g., Porco, Caballo Blanco), or in sedimentary rocks distal to
 stocks (e.g., Bolivar) or inferred to be related to buried stocks (e.g., Huanuni);

4. Style
 of Mineralization. Disseminated, parallel veins, veinlets, fracture swarms, breccias;

5. Ore
 Minerals. Pyrite, marcasite, pyrrhotite, sphalerite, galena, cassiterite, arsenopyrite, chalcopyrite,
 stibnite, stannite, teallite, tetrahedrite, tennantite, wolframite, bismuth, bismuthinite,
 argentite, gold, and Ag-Sb-sulphosalts (freibergite, andorite), Pb-Sb-sulfosalts (zinkenite,
 boulangerite, jamesonite), Pb-Sn-Sb-sulfosalts (franckeite, cylindrite), and Bi sulfosalts.
 Telescoping of intermediate sulphidation epithermal mineralization of Au, Ag, Pb, Sb, As,
 etc. on to higher temperature mesothermal, low sulphidation Sn-W mineralization is characteristic;

6. Gangue
 Minerals. Quartz, barite, and Mn carbonate. There is a transition upward from massive sulfides,
 to quartz, quartz-barite, and barite-chalcedony towards the upper parts of the deposits;
 and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Hydrothermal
 Alteration. Sericitic (sericite-quartz-pyrite) often with tourmaline in the central part
 and zoned outward to argillic and propylitic alteration. The upper zones have advanced argillic
 lithocaps with alunite, residual vuggy silica and silicification. Breccias are common.

The Bolivar deposit is considered a "Bolivian-type" polymetallic deposit which has the primary reference and quoted as described in Arce-Burgao (2009). The Bolivian vein deposits can be identified into three subgroups:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Deposits
 associated with tin porphyries;

2. Deposits
 associated with volcanic domes and sub volcanic stocks; and

3. Deposits
 associated with sedimentary rocks. This classification is based mainly on host rock lithology.

One of the most common types of mineralization in the country, the Bolivar-type is the product of widespread hydrothermal activity between 22 Ma and 4 Ma. The deposits are characterized by a polymetallic signature which is usually telescoped coexistence of low and high temperature minerals and are spatially related to epi-zonal and meso-zonal intrusions. Early stages of mineralization are high temperature, high salinity, and high pressure, indicative of great formations depths. Several overlapping stages of lower temperature events, due to later igneous events and supergene process is during evolution of the Andes, occurred between 11 and 4 Ma. Several of these deposits are classified as giant, such as Sierra Rico de Potosi and Llallagua or "world class" such as Oruro and Huanumi.

On a district scale, deposits from the different subgroups may sometimes be spatially and or genetically associated. The style of mineralization includes groups of veins, subsidiary vane swarms, veinlets, stockwork, and dissemination mineralization. The veins are hosted in a variety of host rocks that include Paleozoic sedimentary and metasedimentary rocks, meso-zonal and epi-zonal stocks, and syn-kinematic flows, dikes and volcanic domes that are generally of rhyolitic, dacitic, and acidic compositions. In general, the deposits have similar origins although they differ with respect to metal signatures and/or fluid geochemistry.

The main metallic minerals, although not necessarily present in every deposit, are cassiterite, sphalerite, galena, pyrite, pyrrhotite, arsenopyrite, chalcopyrite, stibnite, stannite, tetrahedrite, wolframite, native bismuth, bismuthinite, argentite, native gold, and complex sulphosalts such as teallite, franckeite, and cylindiite. The main economical exploitable minerals are tin and silver, with less important tungsten, bismuth, an antimony.

The temperatures of homogenization and the salinities obtained from fluid inclusions in quartz and in sphalerite, and less commonly in cassiderite and barite, average 300 degrees C and 20% weight equivalent NaCl, respectively. Turneaure (1970), identified an early boiling during mineral deposition examining fluid inclusions, which was confirmed by later studies that showed boiling occurred intermittently during all stages of mineral deposition. (Arce Burgoa and Nambu 1989).

The Bolivar zinc-tin deposit is located 90 km southeast of Oruro, in the Canadon Antequera district (Figure 8-1). Mineralogy of the deposit includes sphalerite, galena, cassiterite, jamesonite, pyrite, arsenopyrite and marcasite in a dominant gangue of quartz.

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**Figure 8-1: Conceptual Model of Bolivian Polymetallic Vein Type Deposits (modif. From Heuschmidt, 2000)**

Source: Heuschmidt (2000)

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9 Exploration

There has not been any exploration performed on behalf of Santacruz.

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10 Drilling

10.1 Drilling
 Summary

The Bolivar Mine is an "advanced property" and has been in continuous production since 1993. Glencore and subsequently Santacruz Silver has performed exploration and resource expansion drilling of 146 surface and underground drillholes at the Bolivar Mine since 2000 totalling 49,173.5 m.

As of January 2023, Santacruz had drilled approximately 8 holes for a total of 5,410 m at the Bolivar Mine since the acquisition from Glencore. Table 10-1 summarizes the historical drilling on the property with the Santacruz drilling highlighted in **blue**.

**Table 10-1: Bolivar Drilling Programs from 2000 through 2021**

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| &nbsp;&nbsp;**Phase** | &nbsp;&nbsp;**Year** | &nbsp;&nbsp;**Hole ID** | &nbsp;&nbsp;**Total (m)** | &nbsp;&nbsp;**Core Size** | &nbsp;&nbsp;**Target** | &nbsp;&nbsp;**Total Program Budget ($US)** |
| I | 2000 | DDH_AB_12s - DDH_AB_20s, DDH_ES_01s - DDH_ES_11s | 4705 | HQ/NQ/BQ | vn Rosario | 447013 |
| II | 2001 | DDH_AB_21s - DDH_AB_28s | 3491 | NQ/BQ | vn Rosario | 331636 |
| III | 2005 | DDH_N_60s - DDH_N_62s, DDH_PB_30s - DDH_PB_57s, DDH_R_29s - DDH_R_48s, DDH_SR_45i - DDH_SR_60i | 9948 | HQ/NQ/BQ | vn: Nané, Rosario, Santa Rosa | 1243475 |
| IV | 2006-2007 | DDH_B_66i - DDH_B_88i, DDH_N_63s - DDH_N_68s, DDH_Nu_70s - DDH_Nu_91s, DDH_PB_77s - DDH_PB_92s, DDH_SR_64i | 13372 | HQ/NQ/BQ | vn: Bolivar, Nané, Nueva, Pomabamba, Santa rosa | 1671531 |
| V | 2011 | DDH_BLV_NU_01s - DDH_BLV_NU_03s, DDH_BLV_PBA_01s - DDH:BLV_PBA_04s | 2814 | HQ/NQ | vn: Nueva, Pomabamba | 382643 |
| VI | 2012 | DDH_BLV_PBA_05s-DDH:BLV_PBA_10s | 2349 | HQ/NQ | vn: Pomabamba | 317102 |

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SANTACRUZ SILVER MINING LTD. \| BOLIVAR TECHNICAL REPORT PAGE 10-1

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Phase** | &nbsp;&nbsp;**Year** | &nbsp;&nbsp;**Hole ID** | &nbsp;&nbsp;**Total (m)** | &nbsp;&nbsp;**Core Size** | &nbsp;&nbsp;**Target** | &nbsp;&nbsp;**Total Program Budget ($US)** |
| VII | 2014 | DDH_BLV_BOL_11i - DDH_BLV_BOL_19i, DDH-BLV_ROS_12s - DDH_BLV_ROS_33s | 4689 | HQ/NQ | vn: Bolivar, Rosario | 609570 |
| VIII | 2017 | DDH_BLV_NU_34s - DDH_BLV_NU_37s | 1519 | HQ/NQ | vn: Nueva | 226991 |
| IX | 2018 | DDH_BLV_BOL_20i - DDH_BLV_BOL_23i, DDH-BLV_NU_38i - DDH_BLV_NU_39i | 877 | HQ/NQ | vn: Bolivar, Nueva | 736170 |
| **X** | **2021** | **DDH_BLV_BOL_23s-DDH_BLV_BOL_26s, DDH-BLV_NAN_69s-DDH_BLV_NAN_72s** | **5410** | **HQ/NQ** | **vn: Bolivar, Nané** | **661172** |
| **Total** |  |  | **49173.5** |  |  | **6627303** |

---

The drilling has been primarily focused upon the extension of the veins to depth particularly for definition and delineation of inferred resources. Figure 10-1 shows a plan view of drillhole locations along with the underground channel sample data. Figure 10-2 and Figure 10-3 shows representative section views of the drilling along with channel sample data and topography.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 10-2

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**Figure 10-1: Plan View of Drillhole Locations at the Central Area**

**Figure 10-2: Section View A-A' (azimuth 230°)**

![](ex99-29_036.jpg)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 10-3

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**Figure 10-3: Section View B-B' (azimuth 230°)**

![](ex99-29_037.jpg)

10.2 Drilling
 Programs

Drills were operated by Maldonado Exploraciones of La Paz, Bolivia and Geodrill S.A. of La Serena, Chile. The surface and underground drilling was performed by drilling larger diameter HQ core at the early stage of the hole and reduced to NQ size and BQ size if drilling conditions became difficult.

Drillhole collar surveys were completed using a differential GPS (UTM WGS-84) and the collars of the underground holes are surveyed in using total station by company survey staff. Downhole surveys were derived using either Tropary, Flexit or Reflex depending on the year and the drilling contractor. Early drilling between 2000-2007 in Phases I – IV performed by Maldonado Exploraciones utilized Tropary instrumentation while subsequent drilling by the same contractor in Phases VII – X transitioned to using Reflex EZ-Shot. The drilling performed by Geodrill in 2011 – 2012 in Phases V-VI used Flexit downhole survey equipment.

The details for the surface and underground drilling program for the Bolivar Mine from 2000 to 2023 are summarized in Table 10-2.

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**Table 10-2: Bolivar Drilling Details from 2000 through January 2023**

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| **Contractor/Company** | **Phase** | **Holes Drilled** | **Meters Drilled** | **Downhole Survey Instrument** |
| **Surface** | **Surface** | **Surface** | **Surface** | **Surface** |
| Maldonado Exploraciones | I | 20 | 4705.4 | Trópary |
| Maldonado Exploraciones | II | 8 | 3490.9 | Trópary |
| Maldonado Exploraciones | III | 27 | 8346.85 | Trópary |
| Maldonado Exploraciones | IV | 25 | 10984.1 | Trópary |
| Geodrill S.A. | V | 7 | 2813.55 | Flexit |
| Geodrill S.A. | VI | 6 | 2348.9 | Flexit |
| Maldonado Exploraciones | VII | 19 | 3620 | Reflex |
| Maldonado Exploraciones | VIII | 4 | 1519 | Reflex |
| Maldonado Exploraciones | X | 8 | 5409.7 | Reflex |
| **Underground** | **Underground** | **Underground** | **Underground** | **Underground** |
| Maldonado Exploraciones | III | 7 | 1600.95 | Trópary |
| Maldonado Exploraciones | IV | 5 | 2388.15 | Trópary |
| Maldonado Exploraciones | VII | 4 | 1069 | Reflex |
| Maldonado Exploraciones | IX | 6 | 877 | Reflex |

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Prior to 2010, downhole survey measurements were taken every 50 m however since then, based on recommendations, the frequency was increased every 25 m. Survey results were corrected for magnetic declination, however, the existence of pyrrhotite occasionally causes downhole survey anomalies that require mitigation. These are identified by the geologist during the survey measurement process and corrected by taking another survey measurement above or below the point giving the faulty readings.

Prior to commencement of drilling, the exploration geology supervisor set out the number of runs needed to reach total depth using steel bars and the blocks to be inserted by the driller into the core boxes at the appropriate depth delineated using permanent marker. Unless issues are encountered, the standard drill run length is 3 m. Then the exploration geology supervisor verifies this process by counting the number of steel bars introduced in the hole against the remaining steel bars left to complete total length of hole. Completed core is placed in wooden core boxes which are covered by wooden lids and secured with metal nails prior to being transported by mine staff from drill site to core logging facility.

For underground drillholes, orientations are marked before drill enters to drill site area, with the locations being measured using total station. The orientation of the drillhole is painted on both walls of the drift by the exploration geologist to insure correct alignment and positioning of the drill. Once the equipment mobilized and installed, the drill is leveled, and the direction is set. Finally, the dip is checked with a clinometer or compass.

Core recoveries were high, and by utilizing several drill core sizes, Glencore and Santacruz were able to ensure drillhole target completion. The majority of drillholes were drilled perpendicular to the strike and dip of the veining and therefore significantly represent true thickness of the veining.

There are no known drilling or core recovery factors that could materially impact the accuracy of these results.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 10-5

 

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11 Sample Preparation, Analyses and Security

11.1 Drillhole
 and Sub-Surface Sampling and Security

As reported in Section 10 Drilling, the surface and sub-surface diamond drilling was performed primarily by Maldonado Exploraciones and with GeoDrill S.A. performing drilling services in 2011-2012. The surface diamond drilling is utilized primarily for resource expansion and delineation identify extensions of structures and specifically to define inferred resources. However, the sub-surface drift and slope development sampling is the primary and significant data source for defining and estimating resources which is performed by Santacruz geological staff at the Bolivar Mine.

Sampling methods and procedures are consistent including drill core handling, sample collection, chain-of-custody and security in addition to assay preparation, assay analysis and QA/QC procedures are consistent for Bolivar, Caballo Balance and Porco.

The secure, sealed core and channel samples are delivered by Santacruz mine staff for analysis to the ISO Certified (**NB/ISO/IEC 17025: 2018**) Don Diego assay laboratory which is located within the Don Diego mill and processing complex. The Don Diego Complex including the assay laboratory is owned and operated by the Issuer, Santacruz Silver. All samples undergo both assay preparation and assaying at the Don Diego laboratory which also employs industry accepted QA/QC programs.

All analytical results are entered and reside upon the centralized database called LIMS Laboratory Information Management System which is the responsibility and under the supervision of the Don Deigo laboratory staff. The assay information is provided to geological staff via live, non-read-write access for import into the industry recognized geological modelling and estimation software systems such as LeapFrog<sup>TM</sup> and Datamine<sup>TM</sup>.

Sample rejects and remaining half-core is stored in a secure location and labelled for access and retrieval. These facilities are fully controlled by perimeter fencing and security on the property.

11.1.1 Drill
 Core Logging, Photography, Sampling and Security

Drill core from surface and underground was stored in wooden labelled boxes, from the drill and transported from the drill to the core logging facility. Before core splitting and logging commences, drill core is systematically photographed using tripod-mounted camera in high resolution and digitally archived for reference as part of the drill and sample database.

Logging and sampling were undertaken on site by company personnel under a QA/QC protocol developed by Glencore. Technicians first prepared the core boxes by reviewing drillhole depth tags, re-assembling broken sections, and mis-placed or mis-aligned core. Core is then washed and cleaned, then marked every meter using permanent marker. Core logging is performed to identify lithology, alteration, RQD, structure, mineralization and sampling selection for core sawing was completed by technicians under the direction of the geologist.

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A digital photographic record was performed on each core box, with each photo containing two to a maximum of three boxes. These photos are taken with natural light and each box are marked with their general description, such as project, sample name, box number, and start and end depths.

The exploration geologist is responsible for marking core interval depending on interest structure in mineralization zones, from one to two meters. The typical sample lengths are 1.0 to 1.5 m with a minimum sample width of 1m and maximum lengths of approximately 2.0 m; sample lengths were based on the lithology and alteration. The geologist also marks the saw line along the core, with each side containing roughly an equivalent amount of mineralization, and also marks the start and end of each sample interval as shown in Figure 11-1. The technician records the core intervals entering then into an Excel<sup>TM</sup> spreadsheet.

**Figure 11-1: Example of Core Marked for Splitting**

![](ex99-29_038.jpg)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 11-2

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Technicians secure the sample boxes while they are transported to the dedicated enclosure for cutting. Samples cutting is performed by trained, specialized personnel equipped with appropriate personal protective equipment (PPE) operating a Target Portasaw<sup>TM</sup> brand diamond disc cutting machine as shown in Figure 11-2. This type of cutting machine is used because it allows the operator to safely split the core longitudinally with precision. It is also possible to make perpendicular cuts and to cut segments greater than 45 centimeters (cm) can be split.

**Figure 11-2: Core Splitting Facilities**

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 11-3

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Once the core is cut, half of the drill core is inserted into sample bags along with a sample ticket, tied with plastic straps and then placed in consecutive order according to sequential coding. Then, seven to ten samples are placed in rice bags, based on weight and not exceeding 25 kilograms. Then the rice sacks are grouped into batches and order maintaining as shown Figure 11-3.

**Figure 11-3: Samples Prepared for Analysis Transport**

![](ex99-29_040.jpg)

The samples are then delivered to the laboratory through an analysis request form which lists the required elements for reporting. The form also includes details about the quantity of samples sent, how many sacks they are transported in, and indicate if they are special samples as shown in Figure 11-4.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 11-4

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**Figure 11-4: Sample Submission Form**

![](ex99-29_041.jpg)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 11-5

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All core boxes that have completed the entire logging and sampling process are stored in the logging area sequentially. They are then transported to the permanent secured core storage facilities and then stored on covered metal shelves as shown in Figure 11-5. Each core box is labelled and coded for easy identification and access.

**Figure 11-5: Drill Core Storage Facilities**

![](ex99-29_042.jpg)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 11-6

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11.1.2 Sub-Surface
 Sampling and Logging

The sub-surface sampling is primarily performed within horizontal drift development in addition to face and stope development. Prior to entering the designated underground sampling areas, inspection is performed to ensure or establish adequate ventilation and to perform scaling to eliminate hazards. The structure is washed by pressure hose prior to sampling and the faces marked with white spray paint to delineate length and orientation of sampling transverses. Then a ladder is secured if samples are being taken from the back or at heights up the drift walls to insure safe access. Samples are the taken using a hammer and chisel, collected into an un-used sample bag. Alternatively, samples are collected onto a cleaned and washed tarp, or a specialized tarp lined sample collection pocket for transfer into sample bags. Samples are collected from a 10 cm wide and at least 2 cm depth channel using the hammer and chisel by following the white painted markings. The sampling is performed as two person teams with one operating the hammer and chisel, and the other collected the rock and mineralized fragments. A new sample bag or freshly cleaned tarp is used for each sample. In the case where the sample width is greater than approximately 1 m then more than one sample must be taken. For stope sampling, systematic samples are taken every 4 m. These samples are split depending upon the structure being sampled and the character of the mineralization encountered as shown in Table 11-1. Samples are then introduced to a polyethylene bag with its sample number labeled, sample tag inserted and gathered for transport to the surface for delivery to the analytical laboratory by Santacruz staff of analysis.

**Table 11-1: Underground Sample Mineralization Codes**

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|:---|:---|
| **Code** | **Description** |
| BM | Mineralized Breccia |
| CM | Mineralization Stock |
| VM | Massive Vein |
| VB | Brecciated Vein |
| F | Fault |
| CM | Wall, back, floor, shoulder waste |
| FM | Mineralized Fault |

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11.2 Sample
 Preparation and Analysis

Samples were transported to the Don Diego laboratory, which has NB/ISO/IEC 17025: 2018 certification, for sample preparation and analysis where they are documented and entered to the Laboratory Information Management System (LIMS) for tracking and secure reporting of data and results. It is important to note that the Don Diego Laboratory is owned and operated by the Issuer, Santacruz, and was previously owned and operated by Glencore prior to the purchase of all of the Sinchi Wayra operations.

Once received the samples are laid out for sample preparation which entails crushing and pulverizing the drill core down to 95% passing -140 microns. The resulting pulps are weighed and individually packaged into envelopes and loaded onto carts for assaying. The resulted prepared samples are then assayed for silver, lead, zinc, and iron using an Atomic Absorption Spectroscopy (AAS) for silver, lead, zinc and iron followed by a Gravimetric finish for silver samples > 2100 g/t and Volumetric for lead > 16% and zinc > 20% as shown in Figure 11-6.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 11-7

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**Figure 11-6: Assay Methods Employed at the Bolivar Mine**

Analytical results are provided via secure servers and pdf formatted assay certificates as shown in Figure 11-7.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 11-8

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**Figure 11-7: Example of Don Diego Laboratory Assay Certificate**

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 11-9

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Santacruz database files are stored and managed in Access and Excel formats before being transferred to LeapFrog<sup>TM</sup> and Datamine<sup>TM</sup> software.

All half-core is stored at a dedicated core storage facility that is locked and is within a fully controlled perimeter wall and fencing with security on the property.

11.3 QA/QC
 Procedures and Discussion of Results

The purpose of Quality Assurance and Quality Control (QA/QC) is to ensure that the laboratory procedures may be relied upon by guarding against sample contamination and test whether the equipment used to prepare the samples has been sufficiently cleaned between sequential assays. In addition, it is standard and highly recommended practice to insert additional "control" samples to continually test the precision and accuracy of the resulting analyses.

Since 2000, Sinchi Wayra has implemented QA/QC programs to varying degrees which employ industry standards and accepted practices for drillcore and channel sampling. This includes the regular insertion of blanks and standards randomly into the sample stream along with performing duplicate analysis of pulps and coarse rejects to assess analytical precision and accuracy. Additionally, beginning in 2012, the practice of including coarse and pulp duplicate QA/QC samples was employed.

Field blanks are non-mineralized material sourced locally and inserted into the sample series one every 20 samples (5%). Field blanks are inserted to test for any potential carry-over contamination which might occur in the crushing phase of sample preparation, because of laboratory poor cleaning practices.

Duplicate analysis of pulps and quarter-core are used to evaluate analytical precision and to determine if any biases exist between laboratories. Duplicate analysis of coarse rejects is used to analyze preparation error. Table 11-2 details the QA/QC sample insertion rate.

**Table 11-2: QA/QC Sample Insertion Rates**

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| **Sample Type** | **Notes** |
| Blanks | Usually inserted at the end of mineralized runs to measure carry-over |
| Coarse Blanks | Inserted according to estimated grade of mineralization before, within or immediately after a mineralized interval. Insertion at regular intervals avoided |
| Pulp Blanks | Usually inserted at the end of mineralized runs to measure carry-over |
| Pulp Duplicates | Undertaken at second laboratory with same analytical technique. High- and low-grade mineralized samples are usually chosen |
| Coarse Duplicates | Normally choose mineralized samples, used to measure laboratory sample preparation |

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In 2022, a total of 531 control samples as shown in Table 11-3 were assigned for QA/QC purposes and accounted for approximately 20% of total samples taken during the program.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 11-10

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**Table 11-3: Quantity of Control Samples by Type**

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|:---|:---|
| **Control Type** | **#** |
| Blanks | 150 |
| Field Blanks | 130 |
| Coarse Duplicates | 124 |
| Pulp Duplicates | 127 |
| Total | 531 |

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Contamination and determining whether adequate cleaning practices are being performed at the laboratory is evaluated through the direct incorporation of sample blanks. Blank samples are do typically have some level of very low grade, background values depending upon where they are sourced from so the results should be at that value or within acceptable error (±) thresholds. The placement of blanks within the sample stream is typically in the middle of an identified mineralized structure or immediately at the end of the section or sample run. Figure 11-8 through Figure 11-10 show results show 3 failures or 2% for silver and lead blanks while there were two failures for zinc or 1.3%.

**Figure 11-8: Plot of Ag g/t Values for Field Blanks**

![](ex99-29_045.jpg)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 11-11

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**Figure 11-9: Plot of Pb% Vaues for Field Blanks**

**Figure 11-10: Plot of Zn% Vaues for Field Blanks**

![](ex99-29_047.jpg)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 11-12

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Precision is a measure of reproducibility which is measured by introducing duplicate samples randomly into the sample stream. At the Bolivar Mine, both coarse and pulp duplicates are performed in order to ensure appropriate levels of precision are being attained at the Don Diego laboratory facilities. Coarse duplicates entail taking a physical split of the sample at the sample collection stage and then including that duplicate blindly into the sample stream. Pulp duplicates entail taking a physical split of the sample at the culmination of the sample preparation stage at the laboratory and re-inserted into the sample stream.

Figure 11-11 through Figure 11-13 shows the comparative results for the original versus duplicate grades for silver, lead and zinc, respectively. Note that a ±10% relative difference threshold is denoted as a **red line**. Of the 127 coarse duplicate analyses, the results for silver show good results with two significant failures and four warnings for a failure rate of 1.5% as shown in Figure 11-11. Figure 11-12 shows the results for lead where there are six failures and nine warnings for a failure rate of 5%. Although the failure rate for lead is not particularly high, where a high failure rate would be greater than 10%, it is recommended that the sampling practices be reviewed to determine whether there may be a reason for potential cross-contamination at the sampling stage. Figure 11-13 shows only one failure and no warnings for the zinc coarse duplicates for a failure rate of 0.7%.

**Figure 11-11: Plot of Coarse Reject Duplicates – Ag g/t**

![](ex99-29_048.jpg)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 11-13

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**Figure 11-12: Plot of Coarse Reject Duplicates – Pb%**

![](ex99-29_049.jpg)

**Figure 11-13: Plot of Coarse Reject Duplicates – Zn%**

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 11-14

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Figure 11-14 through Figure 11-16 shows the comparative results for the original versus duplicate grades for silver, lead and zinc pulp duplicates, respectively. Again, note that a ±10% relative difference threshold is denoted as a **red line**. Of the 124 pulp duplicate analyses, the results show good results with no failures and one warning for a failure rate of 0.7% as shown in Figure 11-14. Figure 11-15 and Figure 11-16 shows excellent results for lead and zinc where there are no failures and no warnings for a failure rate of 0%.

**Figure 11-14: Plot of Pulp Duplicates – Ag g/t**

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 11-15

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**Figure 11-15: Plot of Pulp Duplicates – Pb%**

![](ex99-29_052.jpg)

**Figure 11-16: Plot of Pulp Duplicates – Zn%**

![](ex99-29_053.jpg)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 11-16

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In summary, the quality assurance and quality practices and methods employed are reasonable and produce good results. Recommendations with respect to the QA/QC sample selections that the company should investigate obtaining Certified Reference Material form an outside accredited source for blanks, particularly barren blanks, and for specific Ag, Pb, Zn standards.

The LIMS system is widely used and accepted at the laboratory while interfaces to users are automated and trusted. The system is also highly secure which is critical in ensuring that data is not tampered with or prone to inadvertent error however, this also makes it difficult to access, review and report data externally. In addition, reporting functions are relatively dated and system upgrades should be investigated, and some additional customization would also be desirable.

11.4 QP
 Statement

It is the opinion of the QP, Garth Kirkham, P.Geo., that the sampling preparation, security, analytical procedures and quality control protocols used by Santacruz are consistent with generally accepted industry best practices and therefore reliable for the purpose of resource estimation.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 11-17

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12 Data Verification

12.1 Verifications
 by the Authors of this Technical Report

The following details the data verification performed by the Qualified Persons for the completion of this Technical Report.

Multiple site visits were conducted by the QPs, as detailed in Section 2.3 (Table 2-2). The purpose of these visits was to fulfill the requirements specified under NI 43-101 and to familiarize with the property. These site visits consisted of underground tours of mineralized and non-mineralized development headings, sampling review, storage areas and existing infrastructure.

No limitations or failures to conduct data verification were identified by the QPs in the preparation of this Technical Report.

12.2 Geology
 and Resources

12.2.1 Site
 Visit & Verification

The purpose of these visits is to fulfill the requirements specified under NI 43-101, to gain familiarization with the property, to validate the existence, location, extent and the mineralization and deposits. In addition, the site visits are an important component for verification of all information and data being submitted by the company for inclusion into the NI43-101 technical report including sample data, geology, QA/QA procedures and mineral resource models and results. These site visits consisted of underground tours of non-mineralized development headings, sampling, storage areas and existing infrastructure. In addition to gathering on-site data and reports, performing interviews, walking through procedures, and investigating areas of discrepancy, the identification and collection of independent verification data such as samples are all critical activities that make up a site visit.

Prior to the site visits, the author reviewed all collected data sources and reports. The primary sources of data for inspection were the drillhole and underground channel sample data, related assay data, QA/QC data and analyses, assay certificates and LIMS databases. In addition, internal company reports and demonstrations were provided detailing the methods and procedures for sample collection, handling and chain-of-custody, QA/QC procedures and results, and resource estimation methods and reporting.

The QP, Garth Kirkham, P.Geo., visited the property between August 10 through August 13, 2021 and March 15 through March 30, 2023. The site visit included an inspection of the property, offices, underground operations, core storage facilities, and tours of major centres and surrounding villages most likely to be affected by any potential mining operation.

SANTACRUZ SILVER MINING LTD. \| BOLIVAR TECHNICAL REPORT PAGE 12-1

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The August 2021 site visit performed by the QP to support the Technical Report dated December 17, 2021 included a tour of the offices, core logging, and storage facilities which showed clean, well-organized, professional environments. Santacruz geological staff and on-site personnel led the QP through the chain of custody and methods used at each stage of the logging and sampling process. All methods and processes are to common industry standards and common best practices, and no issues were identified. The 2021 site visit also entailed attending all operations including the Boliva miner, Porco mine and the Caballo Blanco complex which included separate attendance to the Tres Amigos, Colquechaquita and Reserva mines. Visits to the underground operations showed extensive, on-going mining operations. In addition, the tour included tours through the Don Diego Milling and Processing Complex along with the sample storage facilities.

The tour of the property showed a clean, well-organized, professional environment. On-site staff led the author through the methods used at each stage of the resource estimation process. All methods and processes are up to industry standards and reflect leading practices, and no issues were identified.

12.2.2 Sample
 Database Verification

Verification of the Bolivar drillhole and underground sample assay database was primarily focused on silver, lead and zinc in addition to iron, arsenic, sulphur and tin. Sample databases were supplied in Excel<sup>TM</sup> format and in LeapFrog<sup>TM</sup>. Checks against source data and assay certificates showed agreement. Statistical analyses used to investigate and identify errors were performed and resulted in minor issues. These have been corrected and it is recommended that a continued program of random "spot checking" the database against assay certificates be employed.

12.2.3 Independent
 Sampling

No verification samples were taken during the 2021 site visit due to severe limitations on transport of materials due to COVID at that time. In addition, the 2021 site visit was performed in support of the Technical Report which did not include a resource estimate and was performed prior to transfer of ownership of all properties from Glencore and Santacruz.

The 2023 site visit included a visit of the Don Diego mill complex which included a tour of the Don Diego laboratory which included an extensive review of the methods and procedures along with gathering appropriate documentation for reporting.

Also, during the 2023 site visit, an extensive independent sampling verification plan was implemented with a total of 80 samples collected across from the Bolivar, Porco and Caballo Blanco operations. The Don Diego laboratory is an NB/ISO/IEC 17025:2018 accredited laboratory which performs all assay analyses for the mining and processing operations for Sinchi Wayra including Bolivar.

In order to ensure reliability of results particularly as the data is being used for resource estimation purposes with this Technical Report, independent verification duplicate samples are sent to an accredited external umpire laboratory. These verification samples were secured and transported to SGS Peru for analysis and comparison. SGS Peru is a well-established certified assay laboratory that possess and maintains ISO 14000 accreditation. Individual samples were placed in plastic bags with a uniquely numbered tag, after which all samples were collectively placed in a larger bag and delivered by independent transport to the SGS laboratory in Lima Peru for analysis. The selection was a combination of acid digestion and Induced Coupled-Plasma Atomic Emission Spectroscopy (ICP) along with screening and hydroxide precipitation for overlimit values.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 12-2

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A total of 20 samples which were comprised of 5 coarse duplicated and 15 pulp duplicates were sent for independent analysis as shown in Table 12-1.

**Table 12-1: Bolivar Independent Verification Sampling**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Sample** | **Ag** | **Fe** | **Pb** | **Pb** | **Zn** | **Zn** |
| BLVGM00805702 | 235 | 12.53 | 1001 | 0.10 | >10000 | 40.81 |
| BLVGM00805704 | 169 | 11.22 | 638 | 0.06 | >10000 | 38.19 |
| BLVGM00805706 | 690 | 13.1 | 1101 | 0.11 | >10000 | 13.95 |
| BLVGM00805708 | 401 | >15 | >10000 | 2.05 | >10000 | 13.18 |
| BLVGM00805710 | 136 | >15 | 1512 | 0.15 | >10000 | 21.69 |
| 804783 | 12.7 | 12.94 | 518 | 0.05 | 8936.4 | 0.89 |
| 804784 | 59.5 | 9.85 | 465 | 0.05 | >10000 | 8.46 |
| 804785 | 108 | 15 | 2153 | 0.22 | >10000 | 12.40 |
| 804786 | 187 | 6.17 | 394 | 0.04 | >10000 | 10.89 |
| 804787 | 43 | 3.4 | 138 | 0.01 | >10000 | 4.45 |
| 804788 | 615 | 9.95 | >10000 | 2.49 | >10000 | 11.47 |
| 804789 | 595 | 9.68 | >10000 | 2.48 | >10000 | 11.53 |
| 804790 | 35.5 | 9.28 | 788 | 0.08 | >10000 | 1.91 |
| 804791 | 118 | 10.06 | 6368 | 0.64 | >10000 | 3.18 |
| 804792 | 737 | 8.9 | >10000 | 2.26 | >10000 | 10.32 |

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Results of the verification samples are presented in Figure 12-1 through Figure 12-4 for silver, lead, zinc and iron, respectively. In all cases, the correlation between the original source Don Diego assay data and that of the duplicate SGS umpire analyses, are perfect as evidenced by the respective R<sup>2</sup> being 1. R<sup>2</sup> is a measure of the goodness of fit of a model. In regression, the R<sup>2</sup> coefficient of determination is a statistical measure of how well the regression predictions approximate the real data points. An R<sup>2</sup> of 1 indicates that the regression predictions perfectly fit the data.

Although, these results are not a complete audit of the laboratory, they do verify that the assay results are suitable for resource estimation purposes.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 12-3

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**Figure 12-1: Results of Independent Verification Sampling for Ag g/t**

![](ex99-29_054.jpg)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 12-4

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**Figure 12-2: Results of Independent Verification Sampling for Pb%**

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 12-5

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**Figure 12-3: Results of Independent Verification Sampling for Zn%**

![](ex99-29_056.jpg)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 12-6

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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**Figure 12-4: Results of Independent Verification Sampling for Fe%**

12.2.4 Geological
 Model Verification

The geological and lithological solid domain models were supplied by Santacruz in both Datamine<sup>TM</sup> and LeapFrog<sup>TM</sup> which are both industry-leading software systems. The QP imported the multiple vein domains into a similar system called MineSight<sup>TM</sup> to verify solids volumes and ensure matching of the solids domains against the drillhole and sample database. Results confirmed location and extent of volumes are appropriate to resource estimation purposes.

12.2.5 Resource
 Estimation Verification

Resource block models were supplied in Datamine<sup>TM</sup> format which is an industry recognized software system used for resource estimation. These models were then imported to MineSight<sup>TM</sup> for verification of the resource estimation. In addition, independent estimations were run using the verified sample data and vein domains employing inverse distance estimations to ensure reasonableness and verify the resources independently. Results illustrated good agreement between the original and verification models.

Verification of the SG regression analysis was also performed by comparing measured versus calculated density values.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 12-7

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12.2.6 Conclusions

The QP is confident that the data and results are valid based on the site visits and inspection of all aspects of the Project, including the methods and procedures used. It is the opinion of the QP that all work, procedures, and results have adhered to best practices and industry standards as required by NI 43-101.

12.3 Mining
 Reserve

The reserves and schedule were received in Deswik. The QP verified that the correct dilution and recovery factors were applied to the stope shapes according to mining methods.

Stope shapes were then queried within Deswik and reported to excel. Calculations were manually checked and verified. Tonnages and metal content of the shapes were checked and verified for each deposit.

The equipment performance rates assumed in the schedule were reviewed. These were based on historic performance and were found to be reasonable by industry standards for each deposit.

Stope productivities by mining method and unit activity were reviewed and found to be and within the expected ranges.

The schedule sequence was reviewed for each deposit. The mining sequence was found to be robust for each mine. There are multiple production zones in each deposit allowing flexibility in the mine plan and sustainable production rates.

On the basis of this QA/QC review, the QP is satisfied that the data provided is adequate for the estimation of the reserves.

12.4 Metallurgy

The metallurgical data used in this report is taken from historical operating information. The reconciled data was compared to the daily sampling data, which was used for this report, to check that the daily data is within a reasonable range compared to the reconciled data.

The reconciled data is based on the sale of concentrates to a smelter. The concentrates are weighed and sampled by a third party whose function is to act without bias to determine the metal received at the smelter in order to determine the correct payment for the concentrates.

12.5 Site
 Visit for Mining, Infrastructure and Environment & Permitting

The description of mining processes, methods and production rates used in this report is based on mine surface and underground visits to representative work areas on August 11, 2021 (by QPs Kirkham and Crowie) and January 27, 2023 (by QP Goodwin), and production reports subsequently provided by Sinchi Wayra. The author's analysis and reconciliation of the data shows that it accurately describes the operation at the time of the visit. Mine and plant Infrastructure, including tailing facilities and water treatment plants was also observed to be as described in provided information as described herein.

Technical software and methods are modern and professionally applied. The authors are confident that the property is described accurately to the level of detail required for this stage of report.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 12-8

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13 Mineral Processing and Metallurgical Testing

The Bolivar Mill has been in continuous production since 1993. The mill receives feed from 2 sources; the company mining operation at the Bolivar Mine and toll feed milling purchased through San Lucas ore sourcing, which is predominantly mined from the same deposit, but in different mineralization zones. The mill processes the two types of feed separately which allows for an analysis of processing for both types of feed.

13.1 Company
 Feed Processing

Data from August 2020 to July 2021 was used to develop the expected metallurgical performance of the Bolivar mill. This data was used to determine throughput, recovery and concentrate grade relationships. The results will be discussed in the upcoming sections.

13.1.1 Mill
 Throughput

The expected availability for the mill is 93.8% and the utilization is 96.3% for an expected operating time of 90.3%. The actual throughput from August 2020 to July 2021 can be found in Figure 13-1.

SANTACRUZ SILVER MINING LTD. \| BOLIVAR TECHNICAL REPORT PAGE 13-1

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**Figure 13-1: Bolivar Mill Company Feed Throughput 2020/2021**

![](ex99-29_058.jpg)

The throughput of company feed through the Bolivar mill during the analyzed period was a little lower than the stated target, with the average of the days it operated being 1,040 t/d. During the analyzed period, the mill ran company feed over 219 whole or partial days and processed 227,671 t of feed. The data suggests that the feed rate is not achieving the target throughput for company feed.

The target grind for the Bolivar plant is a product size P<sub>80</sub> of 100 µm.

13.1.2 Feed
 Grades

For the period examined, the unreconciled feed grades for the company feed were 7.86% zinc, 0.74% lead, and 201 g/t silver. The feed was somewhat variable with standard deviations of 1.52, 0.22, and 61.85 for zinc, lead, and silver respectively. These values fall within the expected ranges for Bolivar feed. The unreconciled feed grades can be seen in Figure 13-2 through Figure 13-4.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 13-2

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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**Figure 13-2: Zinc Feed Grade 2020/2021**

**Figure 13-3: Lead Feed Grade 2020/2021**

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 13-3

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**Figure 13-4: Silver Feed Grade 2020/2021**

![](ex99-29_061.jpg)

The mill feed grades are measured at the lead circuit flotation feed.

13.1.3 Lead
 Production

The grinding circuit product reports to the lead flotation circuit where Aerophene 3418A and a frother are added to float the lead and associated silver. In this circuit, cyanide is used as a zinc depressant, which is added to the cleaner circuit. The lead concentrate produced during evaluated period measured 3,850 t which represents 1.69% of the feed to the plant.

The average grade of the lead concentrate was 32.16% lead, 12.18% zinc, and 5,912 g/t silver. The recoveries to the lead concentrate were 72.68%, 48.43%, and 2.59% for lead, silver, and zinc respectively.

The relationship between the lead feed grade and the lead recovery to the lead concentrate can be seen in Figure 13-5. While there is some variability, especially in the lower lead feed grades, a clear relationship can be seen between lead feed grade and recovery to the lead concentrate.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 13-4

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**Figure 13-5: Mill Lead Concentrate Recovery vs. Lead Feed Grade**

![](ex99-29_062.jpg)

From the above analysis, the recovery relationship for lead to the lead concentrate will be considered: 17.33\*(Lead feed grade %) + 59.56.

The silver recovery to both the lead and zinc concentrates is a byproduct of the flotation process; the silver is associated with the lead and zinc minerals and follows them into the concentrates. The recovery of silver to the lead concentrate can be seen in Figure 13-6. In this case, the silver recovery appears to follow a reasonable trend to the silver grade in the feed and, therefore, the relationship of 0.0604\*(Silver feed grade %) + 36.133 will be used for this report.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 13-5

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**Figure 13-6: Silver Recovery to the Lead Concentrate vs. Mill Feed Silver Grade**

![](ex99-29_063.jpg)

13.1.4 Zinc
 Production

The lead rougher and cleaner tailings report to the zinc circuit conditioning tanks where copper sulphate and additional collector and frother are added to float a zinc concentrate, with silver. The zinc concentrate accounts for approximately 13.7% of the feed mass.

Over the period analyzed, the unreconciled zinc concentrate production was 31,207 t with average grades of 53.06% zinc, 0.91% lead, and 626 g/t silver. The recoveries to the zinc concentrate were 92.48, 43.89, and 17.61 for zinc, silver, and lead respectively.

The zinc recovery as a function of the feed grade was examined and found to be a poor relationship (as is indicated by the R<sup>2</sup> value of 0.0004) for determining expected zinc recovery to the zinc concentrate as can be seen in Figure 13-7. It was determined in this case that the best option was to assign a zinc recovery to the zinc concentrate of 92%, which is the average value over the period examined.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 13-6

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**Figure 13-7: Zinc Recovery to the Zinc Concentrate vs. Mill Feed Zinc Grade**

![](ex99-29_064.jpg)

The silver recovery to the zinc concentrate can be seen in Figure 13-8. In this case, the recovery has a negative relationship to the feed grade, most likely due to the positive relationship that the silver grade has with the silver recovery to the lead concentrate. The relationship for the silver recovery to the zinc concentrate will be taken as -0.0662 x (Silver Feed Grade) + 57.516.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 13-7

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**Figure 13-8: Silver Concentrate to the Zinc Recovery vs. Mill Feed Silver Grade**

![](ex99-29_065.jpg)

13.2 Toll
 Feed Processing

Data from the same time period, August 2020 to July 2021, was used to develop the expected metallurgical performance of the Bolivar mill on toll feed. As was the case for the company feed, the data was used to determine throughput, recovery and concentrate grade relationships.

13.2.1 Mill
 Throughput

As with the company feed, the expected availability for the mill is 93.8% and the utilization is 96.3% for an expected operating time of 90.3% for the toll feed. A summary of the throughput from August 2020 to July 2021 can be found in Figure 13-9.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 13-8

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**Figure 13-9: Bolivar Mill Toll Feed Throughput 2020/2021**

![](ex99-29_066.jpg)

The throughput of company feed through the Bolivar mill during the analyzed period was a little higher than the stated target, with the average of the days it operated being 752 t/d. During the analyzed period, the mill ran company feed over 114 whole or partial days and processed 85,738 t of feed. The data suggests that the feed rate is not achieving the target throughput for company feed.

The target grind for the Bolivar plant toll feed has a P<sub>80</sub> of 100 µm.

13.2.2 Feed
 Grades

For the period examined, the unreconciled feed grades for the company feed were 7.70% zinc, 0.76% lead, and 306 g/t silver. The feed was somewhat variable with standard deviations of 1.45, 0.32, and 111.32 for zinc, lead, and silver respectively. These values fall within the expected ranges for Bolivar toll feed. The unreconciled feed grades can be seen in Figure 13-10 through Figure 13-12.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 13-9

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**Figure 13-10: Toll Feed Zinc Grade 2020/2021**

**Figure 13-11: Toll Feed Lead Grade 2020/2021**

![](ex99-29_068.jpg)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 13-10

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**Figure 13-12: Toll Feed Silver Grade 2020/2021**

![](ex99-29_069.jpg)

The toll feed head grades were measured in the same location as the company feed.

13.2.3 Lead
 Production

The toll feed utilizes the same reagents as the company feed, but in different dosages due to the pyrrhotite that is present in the toll feed but not the company feed. The lead concentrate produced during evaluated period measured 1,569 t which represents 1.83% of the feed to the plant.

The average grade of the lead concentrate was 19.80% lead, 11.07% zinc, and 5,472 g/t silver. Due to the low lead grades, the lead concentrate from the toll feed must be blended with the concentrate from the company feed to produce an acceptable concentrate grade for the smelter. The recoveries to the lead concentrate were 41.84%, 29.42%, and 2.78% for lead, silver, and zinc respectively.

The relationship between the lead feed grade and the lead recovery to the lead concentrate can be seen in Figure 13-13. Although the relationship between lead feed grade and lead recovered to the lead concentrate does not have a high R<sup>2</sup> value, the graph does demonstrate that there is a relationship that can be used to loosely predict recovery. The recovery relationship for lead to the lead concentrate was determined to be: 17.69 x (Lead feed grade %) + 32.15.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 13-11

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**Figure 13-13: Mill Lead Concentrate Recovery vs. Lead Feed Grade**

![](ex99-29_070.jpg)

The silver recovery to both the lead and zinc concentrates is a byproduct of the flotation process; the silver is associated with the lead and zinc minerals and follows them into the concentrates. The recovery of silver to the lead concentrate can be seen in Figure 13-14, In this case the silver recovery appears to be uncorrelated to the silver grade in the toll feed and therefore a silver recovery of 30, which is the average of the toll feed silver recovery to the lead concentrate, will be used.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 13-12

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**Figure 13-14: Silver Recovery to the Lead Concentrate vs. Mill Feed Silver Grade**

13.2.4 Zinc
 Production

Over the period analyzed, the unreconciled zinc concentrate production was 13,434 t with average grades of 43.63% zinc, 1.25% lead, and 773 g/t silver. The recoveries to the zinc concentrate were 88.74%, 36.23%, and 31.27% for zinc, silver, and lead respectively. The higher lead in the zinc concentrate is due to the low recovery of lead to the lead concentrate.

The zinc recovery as a function of the feed grade was examined and found to be a much better relationship for determining expected zinc recovery to the zinc concentrate than for the company feed. This relationship can be seen in Figure 13-15. The relationship used for the purposes of this report for the zinc recovery to the zinc concentrate is 0.3218 x (toll feed zinc grade) + 86.091.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 13-13

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**Figure 13-15: Zinc Recovery to the Zinc Concentrate vs. Mill Feed Zinc Grade**

The unreconciled silver recoveries to the zinc concentrate, for the toll feed, as reported had a few instances of values that were impossible (>100%). In order to determine a silver recovery to the zinc concentrate, any values that were greater than 80% were removed to produce the average recovery of 36.23%. The recovery of silver to the zinc concentrate, with the stated adjustments, can be seen in Figure 13-16, As with the lead concentrate, the silver recovery to the zinc concentrate appears to have a poor correlation to the silver grade in the toll feed. A silver recovery of 36% to the zinc concentrate, which was the average for the data, was chosen for this report.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 13-14

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**Figure 13-16: Silver Recovery to the Zinc Concentrate vs. Mill Feed Silver Grade**

![](ex99-29_073.jpg)

13.3 Metallurgical
 Assumptions

The metallurgical assumptions for recoveries and concentrate grades can be found in Table 13-1.

While both the lead and the zinc concentrates pay for the metal they are named for and for silver, a lead concentrate does not pay for zinc contained and the zinc concentrate does not pay for lead contained. The recoveries included in this report only include recovery to concentrates in which they can be paid.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 13-15

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**Table 13-1: Recovery and Concentrate Grade Estimates**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Parameter** | &nbsp;&nbsp;**Unit** | &nbsp;&nbsp;**Concentrates** | &nbsp;&nbsp;**Concentrates** | &nbsp;&nbsp;**Concentrates** | &nbsp;&nbsp;**Concentrates** |
| &nbsp;&nbsp;**Parameter** | &nbsp;&nbsp;**Unit** | &nbsp;&nbsp;**Lead Concentrate** | &nbsp;&nbsp;**Lead Concentrate** | &nbsp;&nbsp;**Zinc Concentrate** | &nbsp;&nbsp;**Zinc Concentrate** |
| &nbsp;&nbsp;**Parameter** | &nbsp;&nbsp;**Unit** | &nbsp;&nbsp;**Company Feed** | &nbsp;&nbsp;**Toll Feed** | &nbsp;&nbsp;**Company Feed** | &nbsp;&nbsp;**Toll Feed** |
| &nbsp;&nbsp;Zn Recovery | &nbsp;&nbsp;% | &nbsp;&nbsp;N/A | &nbsp;&nbsp;N/A | &nbsp;&nbsp;92 | &nbsp;&nbsp;86.091 + 0.3218\*(Zinc Feed Grade) |
| &nbsp;&nbsp;Pb Recovery | &nbsp;&nbsp;% | &nbsp;&nbsp;59.56 + 17.33\*(Lead Feed Grade) | &nbsp;&nbsp;32.15 + 17.69\*(Lead Feed Grade) | &nbsp;&nbsp;N/A | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;Ag Recovery | &nbsp;&nbsp;% | &nbsp;&nbsp;36.133 + 0.0604\*(Silver Feed Grade) | &nbsp;&nbsp;30 | &nbsp;&nbsp;57.516 - 0.0662\*(Silver Feed Grade) | &nbsp;&nbsp;36 |
| &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** |
| &nbsp;&nbsp;Zn | &nbsp;&nbsp;% | &nbsp;&nbsp;12 | &nbsp;&nbsp;11 | &nbsp;&nbsp;53 | &nbsp;&nbsp;44 |
| &nbsp;&nbsp;Pb | &nbsp;&nbsp;% | &nbsp;&nbsp;32 | &nbsp;&nbsp;20 | &nbsp;&nbsp;0.91 | &nbsp;&nbsp;1.25 |
| &nbsp;&nbsp;Ag | &nbsp;&nbsp;g/t | &nbsp;&nbsp;5900 | &nbsp;&nbsp;5500 | &nbsp;&nbsp;630 | &nbsp;&nbsp;775 |

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BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 13-16

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14 Mineral Resource Estimate

14.1 Introduction

The purpose of this report is to document the resource estimations for the Bolivar deposit. This section describes the work undertaken by Kirkham Geosystems, including key assumptions and parameters used to prepare the mineral resource models for Bolivar which herein to be reporting using ZnEq cut-offs based upon updated commodity pricing and actual operating costs.

In addition, this Technical Report serves as a first-time disclosure for mineral resources for the Bolivar deposit, together with appropriate commentary regarding the merits and possible limitations of such assumptions.

14.2 Data

The 145 drillholes and 23,059 underground channels in the database were supplied in electronic format by Santacruz. This included collars, downhole surveys, lithology data and assay data (i.e., Ag g/t, Pb%, Zn%, Fe%, Sn%). Validation and verification checks were performed during importation of data to ensure there were no overlapping intervals, typographic errors or anomalous entries. Anomalies and errors were validated and corrected. Figure 14-1 shows a plan view of the supplied drillholes and underground channel samples.

**Figure 14-1: Plan View of Bolivar Drillholes**

SANTACRUZ SILVER MINING LTD. \| BOLIVAR TECHNICAL REPORT PAGE 14-1

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14.3 Geology
 Model

Solid models (Figure 14-2 through Figure 14-4) were created from sections and based on a combination of lithology, grades and site knowledge. It is important to note that the Bolivar Mine has been producing for many years which means that a great deal is known about the mineralized structures such that there is a high level of confidence in the location, orientation and dimensions of the modelled geological domains.

**Figure 14-2: Plan View of Bolivar Mineralized Zones and Drillholes**

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-2

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**Figure 14-3: Section View of Bolivar Mineralized Zones and Drillholes Looking North**

![](ex99-29_076.jpg)

**Figure 14-4: Long Section View of Bolivar Mineralized Zones and Drillholes Looking South East**

![](ex99-29_077.jpg)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-3

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All zones were modelled based on current drilling and assay data using LeapFrog<sup>TM</sup> and then imported into MineSight<sup>TM</sup> for interpretation and refinement. Every intersection was inspected, and the solid was then manually adjusted to match the drill intercepts. Once the solid model was created, it was used to code the drillhole assays and composites for subsequent statistical and geostatistical analysis. The solid zones were used to constrain the block model by matching assays to those within the zones. The orientation and ranges (distances) used for search ellipsoids in the estimation process were derived from strike and dip of the mineralized zone, site knowledge and on-site observations by Santacruz geological staff.

14.4 Data
 Analysis

Each of the veins within the Bolivar deposit is identified and individually coded as shown in Table 14-1.

**Table 14-1: Vein Codes and Descriptions for the Bolivar Deposit**

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| | | |
|:---|:---|:---|
| **Vein #** | **Vein Code** | **Vein Name** |
| **3020** | BOL-PBA-NAN | Pomabamba-Bolívar-Nané |
| **3032** | RMA | Ramo A |
| **3040** | BSW - RNA | Bolívar SW - Ramo Nané |
| **3041** | KRN | Karen |
| **3050** | NUE | Nueva |
| **3060** | NSW | Nané SW |
| **3090** | ROS | Rosario |
| **3091** | RRO | Ramo Rosario |
| **3092** | PAM | Pamela |
| **3240** | ALK | Alimak |
| **3250** | RBE | Ramo Bolívar Este |

---

The database was then numerically coded using these individual mineralized solids. The database was then inspected and manually adjusted, drillhole by drillhole, to ensure accuracy of zonal intercepts. Table 14-2 shows the statistics for the silver, lead and zinc assays.

Note that all of the vein domains possess a relatively low degree of variability which is evidenced by the low Coefficient of Variation (CV) which is a unit independent quantitative measure of variability. With CV's being quite low at values of <2 with 3092 having only one lead assay and 3250 having one silver assay with a CV >2. However, the Bolivar deposit is extremely high grade and although not demonstrating high levels of variability, with grades up to 60.8% zinc, 61.6% lead and 17,446 g/t silver, it is prudent to ensure that extremely high grades do not unduly over-influence the resource as a whole. The goal of compositing and grade cutting will be to temper the effect of extreme grades so as not to spread or smear beyond reasonable distances.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-4

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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**Table 14-2: Statistics Silver, Lead and Zinc for the Bolivar Deposit by Vein**

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Vein#** | **#** | **Length (m)** | **Min** | **Max** | **Mean** | **1<sup>st</sup> Q** | **Median** | **3<sup>rd</sup> Q** | **SD** | **Var** | **CV** |
| **Zn** | **3020** | 17212 | 13934.95 | 0.02 | 57.02 | 16.15 | 7.20 | 14.59 | 23.35 | 11.00 | 120.94 | 0.7 |
| **Zn** | **3032** | 335 | 241.8 | 0.34 | 38.46 | 8.20 | 3.60 | 6.66 | 11.19 | 6.43 | 41.38 | 0.8 |
| **Zn** | **3040** | 5847 | 3956.27 | 0.01 | 59.88 | 20.97 | 8.71 | 20.16 | 32.31 | 13.50 | 182.15 | 0.6 |
| **Zn** | **3041** | 233 | 139.45 | 0.11 | 47.74 | 18.06 | 5.20 | 15.64 | 29.93 | 13.90 | 193.09 | 0.8 |
| **Zn** | **3050** | 2128 | 1400.67 | 0.04 | 60.76 | 10.60 | 2.96 | 6.96 | 14.78 | 10.43 | 108.78 | 1 |
| **Zn** | **3060** | 4198 | 3493.62 | 0.1 | 53.80 | 15.00 | 6.28 | 13.68 | 21.97 | 10.35 | 107.04 | 0.7 |
| **Zn** | **3090** | 1877 | 1559.18 | 0.04 | 50.64 | 7.36 | 2.43 | 5.41 | 9.93 | 6.98 | 48.67 | 0.9 |
| **Zn** | **3091** | 70 | 101.27 | 0.84 | 21.30 | 6.91 | 4.97 | 7.10 | 8.38 | 2.94 | 8.66 | 0.4 |
| **Zn** | **3092** | 105 | 71.28 | 0.04 | 26.24 | 4.44 | 0.44 | 2.06 | 5.85 | 5.79 | 33.54 | 1.3 |
| **Zn** | **3240** | 268 | 130.1 | 0.12 | 46.05 | 11.82 | 2.66 | 7.88 | 17.34 | 11.21 | 125.76 | 0.9 |
| **Zn** | **3250** | 342 | 228.25 | 0.11 | 49.86 | 11.28 | 2.88 | 8.17 | 15.41 | 10.45 | 109.14 | 0.9 |
| **Zn** | **Total** | 32615 | 25256.84 | 0.01 | **60.76** | 15.69 | 6.01 | 13.49 | 23.38 | 11.58 | 134.08 | **0.7** |
| **Zn** | **All** | 46062 | 34275.87 | 0 | 60.76 | 14.79 | 4.91 | 12.34 | 22.33 | 11.67 | 136.13 | 0.8 |
| **Pb** | **3020** | 16492 | 13491.46 | 0 | 41.96 | 1.61 | 0.30 | 0.83 | 2.00 | 2.19 | 4.79 | 1.4 |
| **Pb** | **3032** | 335 | 241.8 | 0.1 | 15.37 | 1.07 | 0.19 | 0.41 | 1.28 | 1.73 | 2.99 | 1.6 |
| **Pb** | **3040** | 5824 | 3945.46 | 0.01 | 28.65 | 1.90 | 0.37 | 0.93 | 2.47 | 2.46 | 6.04 | 1.3 |
| **Pb** | **3041** | 233 | 139.45 | 0.04 | 12.23 | 1.65 | 0.46 | 0.85 | 1.99 | 1.98 | 3.92 | 1.2 |
| **Pb** | **3050** | 2127 | 1400.22 | 0 | 45.21 | 1.33 | 0.22 | 0.56 | 1.43 | 2.38 | 5.65 | 1.8 |
| **Pb** | **3060** | 4182 | 3477.95 | 0.01 | 31.54 | 1.20 | 0.25 | 0.71 | 1.65 | 1.51 | 2.29 | 1.3 |
| **Pb** | **3090** | 1867 | 1552.48 | 0 | 61.10 | 2.00 | 0.08 | 0.44 | 1.80 | 4.27 | 18.22 | 2.1 |
| **Pb** | **3091** | 70 | 101.27 | 0.2 | 11.36 | 2.16 | 0.76 | 1.28 | 2.36 | 2.45 | 6.03 | 1.1 |
| **Pb** | **3092** | 105 | 71.28 | 0 | 13.35 | 0.88 | 0.04 | 0.14 | 0.56 | 2.15 | 4.62 | **2.5** |
| **Pb** | **3240** | 268 | 130.1 | 0.01 | 9.75 | 0.89 | 0.13 | 0.30 | 0.82 | 1.43 | 2.03 | 1.6 |
| **Pb** | **3250** | 342 | 228.25 | 0.04 | 13.24 | 0.74 | 0.12 | 0.27 | 0.70 | 1.49 | 2.22 | 2 |
| **Pb** | **Total** | 31845 | 24779.72 | 0 | **61.10** | 1.59 | 0.27 | 0.77 | 1.93 | 2.35 | 5.54 | **1.5** |
| **Pb** | **All** | 44332 | 33325.45 | 0 | 61.89 | 1.53 | 0.23 | 0.70 | 1.86 | 2.32 | 5.38 | 1.5 |
| **Ag** | **3020** | 17194 | 13921.51 | 1 | 17446 | 493 | 117 | 276 | 611 | 650 | 422256 | 1.3 |
| **Ag** | **3032** | 335 | 241.8 | 8 | 4297 | 241 | 45 | 90 | 256 | 415 | 172629 | 1.7 |
| **Ag** | **3040** | 5835 | 3949.71 | 1 | 9398 | 423 | 125 | 288 | 525 | 507 | 256711 | 1.2 |
| **Ag** | **3041** | 233 | 139.45 | 7 | 1927 | 233 | 78 | 196 | 325 | 235 | 55021 | 1 |
| **Ag** | **3050** | 2127 | 1400.22 | 0 | 6564 | 237 | 39 | 111 | 268 | 407 | 165667 | 1.7 |
| **Ag** | **3060** | 4180 | 3478.62 | 2 | 11470 | 555 | 122 | 308 | 713 | 733 | 537660 | 1.3 |
| **Ag** | **3090** | 1932 | 1601.73 | 0 | 5653 | 223 | 50 | 124 | 277 | 299 | 89417 | 1.3 |
| **Ag** | **3091** | 70 | 101.27 | 33 | 898 | 212 | 149 | 176 | 250 | 119 | 14210 | 0.6 |
| **Ag** | **3092** | 105 | 71.28 | 3 | 1689 | 110 | 12 | 43 | 112 | 211 | 44502 | 1.9 |
| **Ag** | **3240** | 268 | 130.1 | 1 | 2713 | 175 | 20 | 66 | 179 | 322 | 103733 | 1.8 |
| **Ag** | **3250** | 342 | 228.25 | 7 | 4039 | 176 | 26 | 77 | 177 | 409 | 166938 | **2.3** |
| **Ag** | **Total** | 32621 | 25263.94 | 0 | **17446** | **449** | 99 | 250 | 554 | 614 | 376623 | **1.4** |
| **Ag** | **All** | 45964 | 34232.64 | 0 | 17446 | 419 | 78 | 218 | 510 | 610 | 371966 | 1.5 |

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BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-5

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Additionally, tin and iron statistics show relatively elevated values particularly for tin within the 3020, 3040, 3060 and 3090 veins. The tin and iron assay data is very variable as evidenced by the very high to extreme CV's ranging from 2 – 4 and up to >17. Although the tin and iron ae not considered economic contributors at this time, they may prove important in the future in addition to needing monitoring from a geo-metallurgical perspective.

**Table 14-3: Statistics Tin and Iron for the Bolivar Deposit by Vein**

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Vein#** | **#** | **Length (m)** | **Min** | **Max** | **Mean** | **1<sup>st</sup> Q** | **Median** | **3<sup>rd</sup> Q** | **SD** | **Var** | **CV** |
| **SN** | **3020** | 17885 | 14409.63 | 0 | **30.40** | **0.54** | 0.00 | 0.00 | 0.59 | 1.16 | 1.35 | 2.1 |
| **SN** | **3032** |  |  |  |  |  |  |  |  |  |  |  |
| **SN** | **3040** | 5872 | 3972.12 | 0 | **16.47** | **0.18** | 0.00 | 0.00 | 0.00 | 0.75 | 0.56 | 4.1 |
| **SN** | **3041** |  |  |  |  |  |  |  |  |  |  |  |
| **SN** | **3050** | 2132 | 1401.97 | 0 | 1.85 | 0.00 | 0.00 | 0.00 | 0.00 | 0.06 | 0.00 | 17.4 |
| **SN** | **3060** | 4351 | 3641.90 | 0 | **18.50** | **0.60** | 0.00 | 0.00 | 0.80 | 1.10 | 1.21 | 1.8 |
| **SN** | **3090** | 1971 | 1642.23 | 0 | **11.21** | **0.12** | 0.00 | 0.00 | 0.00 | 0.55 | 0.30 | 4.6 |
| **SN** | **3091** | 70 | 101.27 | 0 | 1.50 | 0.04 | 0.00 | 0.00 | 0.00 | 0.18 | 0.03 | 4.1 |
| **SN** | **3092** | 105 | 71.28 | 0 | 1.16 | 0.03 | 0.00 | 0.00 | 0.00 | 0.14 | 0.02 | 4.5 |
| **SN** | **3240** |  |  |  |  |  |  |  |  |  |  |  |
| **SN** | **3250** |  |  |  |  |  |  |  |  |  |  |  |
| **SN** | **Total** | 33564 | 25980.00 | 0 | **30.40** | 0.42 | 0.00 | 0.00 | 0.35 | 1.03 | 1.07 | **2.5** |
| **SN** | **All** | 48826 | 36117.22 | 0 | 30.40 | 0.46 | 0.00 | 0.00 | 0.40 | 1.11 | 1.23 | 2.4 |
| **FE** | **3020** | 17885 | 14409.63 | 0 | 45.86 | 1.87 | 0.00 | 0.00 | 0.00 | 5.39 | 29.07 | 2.9 |
| **FE** | **3032** |  |  |  |  |  |  |  |  |  |  |  |
| **FE** | **3040** | 5872 | 3972.12 | 0 | 36.53 | 1.83 | 0.00 | 0.00 | 0.00 | 5.29 | 28.00 | 2.9 |
| **FE** | **3041** | 233 | 139.45 | 0 | 30.91 | 9.78 | 4.71 | 9.48 | 15.19 | 7.05 | 49.69 | 0.7 |
| **FE** | **3050** | 2132 | 1401.97 | 0 | 38.05 | 2.19 | 0.00 | 0.00 | 0.00 | 5.79 | 33.52 | 2.6 |
| **FE** | **3060** | 4351 | 3641.90 | 0 | 34.24 | 1.13 | 0.00 | 0.00 | 0.00 | 4.37 | 19.11 | 3.9 |
| **FE** | **3090** | 1971 | 1642.23 | 0 | 40.69 | 3.13 | 0.00 | 0.00 | 5.66 | 5.44 | 29.62 | 1.7 |
| **FE** | **3091** |  |  |  |  |  |  |  |  |  |  |  |
| **FE** | **3092** | 105 | 71.28 | 0 | 19.36 | 3.09 | 0.00 | 0.00 | 6.34 | 4.28 | 18.28 | 1.4 |
| **FE** | **3240** | 268 | 130.1 | 0 | 10.21 | 0.09 | 0.00 | 0.00 | 0.00 | 0.77 | 0.60 | 8.7 |
| **FE** | **3250** |  |  |  |  |  |  |  |  |  |  |  |
| **FE** | **Total** | 33564 | 25980.00 | 0 | 45.86 | 1.85 | 0.00 | 0.00 | 0.00 | 5.26 | 27.70 | 2.8 |
| **FE** | **All** | 48826 | 36117.22 | 0 | 45.86 | 1.58 | 0.00 | 0.00 | 0.00 | 4.89 | 23.93 | 3.1 |

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BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-6

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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Table 14-4 shows the statistical analysis of assay interval lengths shows that the average sample length is 0.83 m with the median (or the value where 50% of the data is above and below) being 0.7 m. Therefore, the data is negatively skewed meaning that there is a preponderance of small sample lengths in comparison to greater thicknesses. Figure 14-5 also illustrates this negative skewness and also illustrates that the assay lengths are predominately <1 m in length with 20% of all vein samples being >1 m.

**Table 14-4: Statistics Assay Interval Lengths for the Bolivar Deposit by Vein**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Vein#** | **#** | **Min** | **Max** | **Mean** | **1<sup>st</sup> Q** | **Median** | **3<sup>rd</sup> Q** | **SD** | **Var** | **CV** |
| **AI** | **3020** | 17937 | 0.04 | 77.09 | **0.84** | 0.40 | 0.70 | 1.00 | 1.20 | 1.44 | 1.4 |
| **AI** | **3032** | 335 | 0.1 | 1.80 | **0.72** | 0.50 | 0.70 | 1.00 | 0.30 | 0.09 | 0.4 |
| **AI** | **3040** | 5878 | 0.1 | 69.88 | **0.70** | 0.40 | 0.60 | 0.90 | 1.24 | 1.53 | 1.8 |
| **AI** | **3041** | 234 | 0.15 | 4.02 | **0.61** | 0.39 | 0.56 | 0.78 | 0.35 | 0.12 | 0.6 |
| **AI** | **3050** | 2192 | 0.04 | 111.70 | **1.04** | 0.40 | 0.65 | 0.90 | 4.29 | 18.42 | 4.1 |
| **AI** | **3060** | 4353 | 0.01 | 15.57 | **0.84** | 0.45 | 0.70 | 1.00 | 0.70 | 0.49 | 0.8 |
| **AI** | **3090** | 2018 | 0.03 | 54.90 | **0.96** | 0.48 | 0.70 | 1.00 | 1.80 | 3.24 | 1.9 |
| **AI** | **3091** | 70 | 0.6 | 2.80 | **1.45** | 0.90 | 1.50 | 1.82 | 0.60 | 0.36 | 0.4 |
| **AI** | **3092** | 123 | 0.02 | 76.61 | **1.82** | 0.48 | 0.68 | 0.95 | 7.64 | 58.38 | 4.2 |
| **AI** | **3240** | 269 | 0.1 | 3.75 | **0.50** | 0.30 | 0.40 | 0.60 | 0.34 | 0.11 | 0.7 |
| **AI** | **3250** | 342 | 0.1 | 2.00 | **0.67** | 0.40 | 0.60 | 1.00 | 0.34 | 0.12 | 0.5 |
| **AI** | **Total** | 33751 | 0.01 | 111.70 | **0.83** | 0.40 | 0.70 | 0.98 | 1.65 | 2.71 | 2 |
| **AI** | **All** | 54018 | 0.01 | 175.86 | **1.56** | 0.40 | 0.70 | 1.00 | 5.55 | 30.79 | 3.6 |

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BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-7

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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**Figure 14-5: Assay Interval Lengths**

![](ex99-29_078.jpg)

A significant concern related to having very small sample widths is the potential for bias due to selectively sampled or high grading. Figure 14-6 shows the distribution of silver values compared with sample lengths where there are a large number of very high grades that coincide with small intervals although the distribution is not overly biased. However, compositing to larger intervals will understandably smooth out or dilute the effect of these very high grades, it is also clear that an outlier strategy that reduces the extreme effects is also warranted even though variabilities remain low.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-8

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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**Figure 14-6: Assay Interval Lengths vs Silver Grades**

14.5 Composites

It was determined that a 1.0 m composite length offered the best balance between supplying common support for samples and minimizing the smoothing of the grades with ~80% of the samples within the mineralized zones being <1 m in length. The 1.0 m sample length also was consistent with the distribution of sample lengths within the mineralized domains as shown in the histogram of assay lengths.

Table 14-5 shows the basic statistics for the 1.0 m zinc, lead and silver composite grades within the mineralized vein domains. It should be noted that although 1.0 m is the composite length, any residual composites of lengths greater than 0.5 m were retained to represent a composite, while any composite residuals less than 0.5 m were combined with the previous composite. Note that the composite data was not declustered however analysis shows that there are small variations in the mean grades between native and declustered composites. Due to the high degree of reliance on underground sample data for the estimation process, consideration should always include review of declustering to ensure appropriate data support.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-9

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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**Table 14-5: Composite Statistics for the Bolivar Deposit by Vein**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Vein#** | **#** | **Min** | **Max** | **Mean** | **1<sup>st</sup> Q** | **Median** | **3<sup>rd</sup> Q** | **SD** | **Var** | **CV** |
| **Zn** | **3020** | 17212 | 0.02 | 57.02 | 16.15 | 7.20 | 14.59 | 23.35 | 11.00 | 120.94 | 0.7 |
| **Zn** | **3032** | 335 | 0.34 | 38.46 | 8.20 | 3.60 | 6.66 | 11.19 | 6.43 | 41.38 | 0.8 |
| **Zn** | **3040** | 5847 | 0.01 | 59.88 | 20.97 | 8.71 | 20.16 | 32.31 | 13.50 | 182.15 | 0.6 |
| **Zn** | **3041** | 233 | 0.11 | 47.74 | 18.06 | 5.20 | 15.64 | 29.93 | 13.90 | 193.09 | 0.8 |
| **Zn** | **3050** | 2128 | 0.04 | 60.76 | 10.60 | 2.96 | 6.96 | 14.78 | 10.43 | 108.78 | 1 |
| **Zn** | **3060** | 4198 | 0.1 | 53.8 | 15.00 | 6.28 | 13.68 | 21.97 | 10.35 | 107.04 | 0.7 |
| **Zn** | **3090** | 1877 | 0.04 | 50.64 | 7.36 | 2.43 | 5.41 | 9.93 | 6.98 | 48.67 | 0.9 |
| **Zn** | **3091** | 70 | 0.84 | 21.3 | 6.91 | 4.97 | 7.10 | 8.38 | 2.94 | 8.66 | 0.4 |
| **Zn** | **3092** | 105 | 0.04 | 26.24 | 4.44 | 0.44 | 2.06 | 5.85 | 5.79 | 33.54 | 1.3 |
| **Zn** | **3240** | 268 | 0.12 | 46.05 | 11.82 | 2.66 | 7.88 | 17.34 | 11.21 | 125.76 | 0.9 |
| **Zn** | **3250** | 342 | 0.11 | 49.86 | 11.28 | 2.88 | 8.17 | 15.41 | 10.45 | 109.14 | 0.9 |
| **Zn** | **Total** | 32615 | 0.01 | 60.76 | 15.69 | 6.01 | 13.49 | 23.38 | 11.58 | 134.08 | 0.7 |
| **Zn** | **All** | 46062 | 0 | 60.76 | 14.79 | 4.91 | 12.34 | 22.33 | 11.67 | 136.13 | 0.8 |
| **Pb** | **3020** | 16492 | 0 | 41.96 | 1.61 | 0.30 | 0.83 | 2.00 | 2.19 | 4.79 | 1.4 |
| **Pb** | **3032** | 335 | 0.1 | 15.37 | 1.07 | 0.19 | 0.41 | 1.28 | 1.73 | 2.99 | 1.6 |
| **Pb** | **3040** | 5824 | 0.01 | 28.65 | 1.90 | 0.37 | 0.93 | 2.47 | 2.46 | 6.04 | 1.3 |
| **Pb** | **3041** | 233 | 0.04 | 12.23 | 1.65 | 0.46 | 0.85 | 1.99 | 1.98 | 3.92 | 1.2 |
| **Pb** | **3050** | 2127 | 0 | 45.21 | 1.33 | 0.22 | 0.56 | 1.43 | 2.38 | 5.65 | 1.8 |
| **Pb** | **3060** | 4182 | 0.01 | 31.54 | 1.20 | 0.25 | 0.71 | 1.65 | 1.51 | 2.29 | 1.3 |
| **Pb** | **3090** | 1867 | 0 | 61.1 | 2.00 | 0.08 | 0.44 | 1.80 | 4.27 | 18.22 | 2.1 |
| **Pb** | **3091** | 70 | 0.2 | 11.36 | 2.16 | 0.76 | 1.28 | 2.36 | 2.45 | 6.03 | 1.1 |
| **Pb** | **3092** | 105 | 0 | 13.35 | 0.88 | 0.04 | 0.14 | 0.56 | 2.15 | 4.62 | 2.5 |
| **Pb** | **3240** | 268 | 0.01 | 9.75 | 0.89 | 0.13 | 0.30 | 0.82 | 1.43 | 2.03 | 1.6 |
| **Pb** | **3250** | 342 | 0.04 | 13.24 | 0.74 | 0.12 | 0.27 | 0.70 | 1.49 | 2.22 | 2 |
| **Pb** | **Total** | 31845 | 0 | 61.1 | 1.59 | 0.27 | 0.77 | 1.93 | 2.35 | 5.54 | 1.5 |
| **Pb** | **All** | 44332 | 0 | 61.89 | 1.53 | 0.23 | 0.70 | 1.86 | 2.32 | 5.38 | 1.5 |
| **Ag** | **3020** | 17194 | 1 | 17446 | 493 | 117 | 276 | 611 | 650 | 422256 | 1.3 |
| **Ag** | **3032** | 335 | 8 | 4297 | 241 | 45 | 90 | 256 | 415 | 172629 | 1.7 |
| **Ag** | **3040** | 5835 | 1 | 9398 | 423 | 125 | 288 | 525 | 507 | 256711 | 1.2 |
| **Ag** | **3041** | 233 | 7 | 1927 | 233 | 78 | 196 | 325 | 235 | 55021 | 1 |
| **Ag** | **3050** | 2127 | 0 | 6564 | 237 | 39 | 111 | 268 | 407 | 165667 | 1.7 |
| **Ag** | **3060** | 4180 | 2 | 11470 | 555 | 122 | 308 | 713 | 733 | 537660 | 1.3 |
| **Ag** | **3090** | 1932 | 0 | 5653 | 223 | 50 | 124 | 277 | 299 | 89417 | 1.3 |
| **Ag** | **3091** | 70 | 33 | 898 | 212 | 149 | 176 | 250 | 119 | 14210 | 0.6 |
| **Ag** | **3092** | 105 | 3 | 1689 | 110 | 12 | 43 | 112 | 211 | 44502 | 1.9 |
| **Ag** | **3240** | 268 | 1 | 2713 | 175 | 20 | 66 | 179 | 322 | 103733 | 1.8 |
| **Ag** | **3250** | 342 | 7 | 4039 | 176 | 26 | 77 | 177 | 409 | 166938 | 2.3 |
| **Ag** | **Total** | 32621 | 0 | 17446 | 449 | 99 | 250 | 554 | 614 | 376623 | 1.4 |
| **Ag** | **All** | 45964 | 0 | 17446 | 419 | 78 | 218 | 510 | 610 | 371966 | 1.5 |

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BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-10

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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The box plots for the zinc, lead and silver, composites shown in Figure 14-7 through Figure 14-9 illustrate that each of the individual vein domains have differing statistical characteristics and grade distributions. Therefore, there is not a case for combining any or all of the vein domains for estimation and as such, they are treated independently utilizing hard boundaries.

**Figure 14-7: Box Plot of Zn Composites for the Bolivar Deposit**

![](ex99-29_080.jpg)

SANTACRUZ SILVER MINING LTD. \| BOLIVAR TECHNICAL REPORT PAGE 14-11

**Figure 14-8: Box Plot of Pb Composites for the Bolivar Deposit**

![](ex99-29_081.jpg)

**Figure 14-9: Box Plot of Ag Composites for the Bolivar Deposit**

![](ex99-29_082.jpg)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-12

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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14.6 Evaluation
 of Outlier Assay Values

An evaluation of the probability plots suggests that there may be outlier assay values that could result in an overestimation of resources as previously discussed. Although it is believed that this risk is relatively low, it was considered prudent to cut the silver, lead and zinc composites to varying thresholds for each mineralized vein to reduce the effects of outliers.

As previously discussed, the CV's, which are a unit independent measure of variability, were relatively low for the assay data. This may be mitigated or resolved by 1) compositing and 2) cutting or grade limiting.

An evaluation of the probability plots suggests that there may be outlier values or populations that could result in an overestimation or smearing of grade. Figure 14-10 through Figure 14-12 shows examples of probability plots for the Pomabamba-Bolivar-Nané vein for the lead, zinc and silver, respectively which demonstrate "breaks" or shift at the 99-percentile that indicate an outlier population. Therefore, for composites above those "breaks" or thresholds, the composites are limited or capped. Table 14-6 lists the cut thresholds applied to the composite data for each individual vein for zinc, silver and lead, respectively.

**Figure 14-10: Cumulative Probability Plot of Zn Composites for the Bolivar Deposit**

![](ex99-29_083.jpg)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-13

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

---

**Figure 14-11: Cumulative Probability of Pb Composites for the Bolivar Deposit**

![](ex99-29_084.jpg)

**Figure 14-12: Cumulative Probability of Pb Composites for the Bolivar Deposit**

![](ex99-29_085.jpg)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-14

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|:---|:---|
| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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**Table 14-6: Outlier Cutting Analysis for the Bolivar Deposit**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Vein #** | **Vein Code** | **Vein Name** | **Zn %** | **Ag g/t** | **Pb %** |
| **3020** | BOL-PBA-NAN | Pomabamba-Bolívar-Nané | 49.7 | 6120 | 18.4 |
| **3032** | RMA | Ramo A | 27.5 | 1400 | 4.2 |
| **3040** | BSW - RNA | Bolívar SW - Ramo Nané | 49.5 | 5069 | 18.4 |
| **3041** | KRN | Karen | 43.3 | 704 | 9.2 |
| **3050** | NUE | Nueva | 47.4 | 2567 | 16 |
| **3060** | NSW | Nané SW | 47.1 | 5250 | 11 |
| **3090** | ROS | Rosario | 32.6 | 1460 | 25.5 |
| **3091** | RRO | Ramo Rosario | 13.9 | 452 | 9.8 |
| **3092** | PAM | Pamela | 20.7 | 710 | 9.5 |
| **3240** | ALK | Alimak | 40.6 | 1539 | 4.4 |
| **3250** | RBE | Ramo Bolívar Este | 38.1 | 1190 | 6.9 |

---

Table 14-7 illustrates the effect of each process from assay data, composites and cut composites along with the reduction in average grade and corresponding CV. Throughout, the results show a modest reduction of metal as illustrated by the reductions of the mean grades from assay versus cut composites as shown as **red bold**. In addition, variability is modestly to significantly reduced as illustrated by the reduction in the CV's.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-15

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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**Table 14-7: Outlier Cutting Analysis for the Bolivar Deposit**

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | **Assays** | **Assays** | **Assays** | **Comp** | **Comp** | **Comp** | **Cut Grades** | **Cut Grades** | **Cut Grades** | **Comps vs Cut** | **Comps vs Cut** | **Comps vs Cut** | **Assays vs Cut** | **Assays vs Cut** | **Assays vs Cut** |
|  | <br>**Vein#** | **Max** | **Mean** | **CV** | **Max** | **Mean** | **CV** | **Max** | **Mean** | **CV** | **Max** | **Mean** | **CV** | **Max** | **Mean** | **CV** |
| **Zn** | **3020** | 57.02 | 16.15 | 0.7 | 56.6 | 15.70 | 0.6 | 49.7 | 15.70 | 0.6 | -12% | 0% | 0% | -13% | **-3%** | **-7%** |
| **Zn** | **3032** | 38.46 | 8.20 | 0.8 | 30.36 | 8.20 | 0.7 | 27.5 | 8.19 | 0.7 | -9% | 0% | -1% | -28% | 0% | **-14%** |
| **Zn** | **3040** | 59.88 | 20.97 | 0.6 | 53.74 | 20.89 | 0.6 | 49.5 | 20.89 | 0.6 | -8% | 0% | 0% | -17% | 0% | **-13%** |
| **Zn** | **3041** | 47.74 | 18.06 | 0.8 | 47.74 | 18.16 | 0.6 | 43.3 | 18.09 | 0.6 | -9% | 0% | -1% | -9% | 0% | **-20%** |
| **Zn** | **3050** | 60.76 | 10.60 | 1 | 55.32 | 10.61 | 0.8 | 47.4 | 10.61 | 0.8 | -14% | 0% | 0% | -22% | 0% | **-19%** |
| **Zn** | **3060** | 53.80 | 15.00 | 0.7 | 53.8 | 14.38 | 0.6 | 47.1 | 14.37 | 0.6 | -12% | 0% | 0% | -12% | **-4%** | **-7%** |
| **Zn** | **3090** | 50.64 | 7.36 | 0.9 | 48.02 | 7.00 | 0.9 | 32.6 | 6.98 | 0.9 | -32% | 0% | -1% | -36% | **-5%** | **-7%** |
| **Zn** | **3091** | 21.30 | 6.91 | 0.4 | 21.3 | 6.91 | 0.4 | 13.9 | 6.83 | 0.4 | -35% | -1% | -9% | -35% | -1% | **-9%** |
| **Zn** | **3092** | 26.24 | 4.44 | 1.3 | 18.77 | 2.86 | 1.6 | 18.77 | 2.86 | 1.6 | 0% | 0% | 0% | -28% | **-36%** | **21%** |
| **Zn** | **3240** | 46.05 | 11.82 | 0.9 | 41.28 | 11.77 | 0.7 | 40.6 | 11.76 | 0.7 | -2% | 0% | 0% | -12% | 0% | **-23%** |
| **Zn** | **3250** | 49.86 | 11.28 | 0.9 | 49.86 | 11.28 | 0.8 | 38.1 | 11.18 | 0.8 | -24% | -1% | -3% | -24% | -1% | **-19%** |
| **Zn** | **Total** | 60.76 | 15.69 | 0.7 | 56.6 | 15.32 | 0.7 | 49.7 | 15.31 | 0.7 | -12% | 0% | 0% | -18% | **-2%** | **-8%** |
| **Zn** | **All** | 60.76 | 14.79 | 0.8 | 59.2 | 11.62 | 1 | 59.2 | 11.62 | 1 | 0% | 0% | 0% | -3% | **-21%** | **21%** |
| **Pb** | **3020** | 41.96 | 1.61 | 1.4 | 38.06 | 1.51 | 1.3 | 18.4 | 1.51 | 1.2 | -52% | 0% | -3% | -56% | **-6%** | **-10%** |
| **Pb** | **3032** | 15.37 | 1.07 | 1.6 | 15.37 | 1.07 | 1.5 | 4.2 | 0.94 | 1.1 | -73% | **-12%** | **-25%** | -73% | **-12%** | **-31%** |
| **Pb** | **3040** | 28.65 | 1.90 | 1.3 | 28.65 | 1.89 | 1.1 | 18.4 | 1.89 | 1 | -36% | **0%** | **-1%** | -36% | -1% | **-19%** |
| **Pb** | **3041** | 12.23 | 1.65 | 1.2 | 10.95 | 1.65 | 1 | 10.95 | 1.65 | 1 | 0% | **0%** | **0%** | -10% | 0% | **-20%** |
| **Pb** | **3050** | 45.21 | 1.33 | 1.8 | 32.879 | 1.34 | 1.5 | 16 | 1.33 | 1.4 | -51% | **-1%** | **-5%** | -65% | 0% | **-21%** |
| **Pb** | **3060** | 31.54 | 1.20 | 1.3 | 15.1 | 1.15 | 1.1 | 11.03 | 1.15 | 1.1 | -27% | **0%** | **-1%** | -65% | **-5%** | **-12%** |
| **Pb** | **3090** | 61.10 | 2.00 | 2.1 | 61.1 | 1.96 | 2.1 | 25.5 | 1.90 | 1.9 | -58% | **-3%** | **-11%** | -58% | **-5%** | **-10%** |
| **Pb** | **3091** | 11.36 | 2.16 | 1.1 | 11.36 | 2.16 | 1.1 | 11.36 | 2.16 | 1.1 | 0% | **0%** | **0%** | 0% | 0% | 0% |
| **Pb** | **3092** | 13.35 | 0.88 | 2.5 | 7.3975 | 0.63 | 2.5 | 7.40 | 0.63 | 2.5 | 0% | **0%** | **0%** | -45% | **-28%** | 2% |
| **Pb** | **3240** | 9.75 | 0.89 | 1.6 | 5.7 | 0.87 | 1.2 | 4.4 | 0.86 | 1.1 | -23% | **-1%** | **-3%** | -55% | **-3%** | **-30%** |
| **Pb** | **3250** | 13.24 | 0.74 | 2 | 13.24 | 0.74 | 1.7 | 6.9 | 0.71 | 1.5 | -48% | **-3%** | **-12%** | -48% | **-3%** | **-26%** |
| **Pb** | **Total** | 61.10 | 1.59 | 1.5 | 61.1 | 1.52 | 1.4 | 25.5 | 1.51 | 1.3 | -58% | **-1%** | **-5%** | -58% | **-5%** | **-12%** |
| **Pb** | **All** | 61.89 | 1.53 | 1.5 | 61.1 | 1.17 | 1.6 | 25.5 | 1.16 | 1.6 | -58% | **-1%** | **-4%** | -59% | **-24%** | 4% |
| **Ag** | **3020** | 17446 | 493 | 1.3 | 9994 | 478 | 1.2 | 6120 | 477 | 1.2 | -39% | **0%** | **-1%** | -65% | **-3%** | **-12%** |
| **Ag** | **3032** | 4297 | 241 | 1.7 | 4297 | 241 | 1.6 | 1400 | 223 | 1.3 | -67% | **-7%** | **-18%** | -67% | **-7%** | **-24%** |
| **Ag** | **3040** | 9398 | 423 | 1.2 | 5625 | 421 | 1 | 5069 | 421 | 1 | -10% | **0%** | **0%** | -46% | -1% | **-18%** |
| **Ag** | **3041** | 1927 | 233 | 1 | 1804 | 234 | 0.8 | 704 | 224 | 0.6 | -61% | **-4%** | **-24%** | -63% | **-3%** | **-37%** |
| **Ag** | **3050** | 6564 | 237 | 1.7 | 4229 | 238 | 1.4 | 2567 | 236 | 1.3 | -39% | **-1%** | **-5%** | -61% | -1% | **-23%** |
| **Ag** | **3060** | 11470 | 555 | 1.3 | 11092 | 531 | 1.2 | 5250 | 528 | 1.2 | -53% | **0%** | **-4%** | -54% | **-5%** | **-13%** |
| **Ag** | **3090** | 5653 | 223 | 1.3 | 3188 | 224 | 1.2 | 1460 | 220 | 1.1 | -54% | **-2%** | **-6%** | -74% | -1% | **-15%** |
| **Ag** | **3091** | 898 | 212 | 0.6 | 898 | 212 | 0.6 | 452 | 205 | 0.4 | -50% | **-3%** | **-21%** | -50% | **-3%** | **-21%** |
| **Ag** | **3092** | 1689 | 110 | 1.9 | 1185 | 74 | 2.2 | 710 | 68 | 1.9 | -40% | **-7%** | **-13%** | -58% | **-38%** | 0% |
| **Ag** | **3240** | 2713 | 175 | 1.8 | 1675 | 176 | 1.2 | 1539 | 176 | 1.2 | -8% | **0%** | **-1%** | -43% | 1% | **-37%** |
| **Ag** | **3250** | 4039 | 176 | 2.3 | 3747 | 176 | 1.9 | 1190 | 157 | 1.4 | -68% | **-11%** | **-29%** | -71% | **-11%** | **-42%** |
| **Ag** | **Total** | 17446 | 449 | 1.4 | 11092 | 438 | 1.2 | 6120 | 436 | 1.2 | -45% | 0% | -2% | -65% | **-3%** | **-13%** |
| **Ag** | **All** | 17446 | 419 | 1.5 | 11092 | 329 | 1.5 | 7027 | 328 | 1.5 | -37% | 0% | -1% | -60% | **-22%** | 3% |

---

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-16

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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14.7 Specific
 Gravity Estimation

Bulk densities were based on a total of 1,032 individual measurements taken by Company field personnel throughout the Bolivar deposit. These density values ranged om 1.07 tonne per cubic meter (t/m<sup>3</sup>) to 8.68 t/m<sup>3</sup> and average to 3.28 t/m<sup>3</sup>. However, based on the metal content as for two samples with densities of 1.07 t/m<sup>3</sup> and 1.77 t/m<sup>3</sup>, it appears that these may be outliers or more likely errors.

A multiple-element linear regression formula was used to determine the density, which includes weighted factors for the zinc, lead and iron. Figure 14-13 through Figure 14-15 shows the scatterplots which illustrates comparable relationships for density versus zinc, lead and iron, respectively. It is important to note that silver has not been considered due to the low correlatability with density as shown in Figure 14-16.

**Figure 14-13: Scatterplot of Zinc vs Density**

![](ex99-29_086.jpg)

SANTACRUZ SILVER MINING LTD. \| BOLIVAR TECHNICAL REPORT PAGE 14-17

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|:---|:---|
| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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**Figure 14-14: Scatterplot of Lead vs Density**

![](ex99-29_087.jpg)

**Figure 14-15: Scatterplot of Iron vs Density**

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-18

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|:---|:---|
| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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**Figure 14-16: Scatterplot of Silver vs Density**

![](ex99-29_089.jpg)

The multiple-element linear regression formula was calculated with the use of a Python script based on the 1,032 density samples analyzed locally which has been consistent 2021. No new samples were added to the database however it recommended that going forward additional samples be collected and measured to re-test the regression formula.

Due to the fact that not all of the dataset has Fe analysis, two formulas have been established for the calculation of density, the first utilizing Zn, Pb and Fe whilst the second considers only Zn and Pb. There the Multiple Linear Regression Formula is in the form of SGcalculated = Intersection + Coefficient \* Assay Value as follows:

● If the Fe analysis is available:

 

*Density =2.53757+0.0176\*Zn+0.05611\*Pb+0.04176\*Fe*

 

● If the Fe analysis is not available:

 

*Density = 2.83179+0.02252\*Zn+0.04516\*Pb*

 

Figure 14-17 and Figure 14-18 shows the scatterplot of measured versus calculated density for each case, with and without iron. Th correlation for the formula with iron is good (R<sup>2</sup>=0.72) however a handful of outliers are causing a less than ideal result however upon removal of the four outliers the correlation is excellent (R<sup>2</sup>=0.88). Therefore, going forward is recommended to continue to gather density data in addition to ensuring that iron is included in the analysis.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-19

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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Specific gravities assigned on a block-by-block basis using the calculated values. A default density of 3.1 t/m<sup>3</sup> was assigned to any blocks that were not assigned a calculated value.

**Figure 14-17: Scatterplot of Measured Density vs Calculated Density with Iron**

![](ex99-29_090.jpg)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-20

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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**Figure 14-18: Scatterplot of Measured Density vs Calculated Density without Iron**

![](ex99-29_091.jpg)

14.8 Block
 Model Definition

The block model used to estimate the resources was defined according to the limits specified in Figure 14-19. The block model is orthogonal and rotated 47 degrees, reflecting the orientation of the deposit. The chosen block size was 5 m by 5 m by 5 m and subsequently sub-blocked to 1 m x 0.1 m x 1 m to facilitate underground mine planning and scheduling. Note that MineSight<sup>TM</sup> uses the centroid of the blocks as the origin.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-21

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|:---|:---|
| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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**Figure 14-19: Dimensions, Origin and Orientation for the Bolivar Block Model**

14.9 Resource
 Estimation Methodology

Experimental variograms and variogram models in the form of correlograms were generated for silver, lead and zinc grades which were utilized for the estimation via ordinary kriging. However, Veta Karen (3041), Veta Ramo Rosario (3091) Veta Pamela (3092) and Veta Ramo Bolivar Este (3250) do not have sufficient data to generate meaningful variogram results. For this reason, it was decided at this time to use inverse distance to the second power for these veins as the interpolator.

The resource estimation plan includes the following items:

● Mineralized zone code of modelled mineralization in each block;

● Estimated block silver, lead, and zinc grades by ordinary kriging with the exception of inverse distance to the second power being employed for Veta Karen (3041), Veta Ramo Rosario (3091) Veta Pamela (3092) and Veta Ramo Bolivar Este (3250);

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-22

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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● Three-pass estimation strategy for each mineralized vein domain as detailed in Table 14-8. The three passes enable better estimation of local metal grades and infill of interpreted solids and to facilitate classification;

● Interpolation of iron and tin using inverse distance to the second power; and

● Assignment on pillars, sterilized and mined out areas coded into the block model for exclusion.

Table 14-8 summarizes the search ellipse dimensions for the two estimation passes for each zone.

**Table 14-8: Search Ellipse Parameters for the Bolivar Deposit**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Vein** | **Pass** | **Range 1 (m)** | **Range 2 (m)** | **Range 3 (m)** | **Min # Composites** | **Max # Composites** | **Octant Search** |
| **3020** | 1 | 60 | 37 | 6 | 5 | 25 | yes |
|  | 2 | 90 | 55 | 6 | 5 | 25 | yes |
|  | 3 | 180 | 110 | 12 | 3 | 25 | no |
| **3032** | 1 | 19 | 35 | 10 | 5 | 25 | no |
|  | 2 | 37 | 71 | 20 | 4 | 25 | no |
|  | 3 | 74 | 142 | 30 | 2 | 25 | no |
| **3040** | 1 | 48 | 62 | 13 | 5 | 25 | yes |
|  | 2 | 73 | 94 | 20 | 4 | 25 | no |
|  | 3 | 146 | 188 | 40 | 4 | 25 | no |
| **3041** | 1 | 28 | 26 | 17 | 5 | 25 | yes |
|  | 2 | 42 | 40 | 25 | 4 | 25 | no |
|  | 3 | 84 | 80 | 50 | 4 | 25 | no |
| **3050** | 1 | 31 | 33 | 5 | 5 | 20 | yes |
|  | 2 | 47 | 50 | 7 | 4 | 20 | no |
|  | 3 | 94 | 100 | 14 | 2 | 20 | no |
| **3060** | 1 | 22 | 48 | 5 | 5 | 25 | no |
|  | 2 | 34 | 73 | 7 | 4 | 25 | no |
|  | 3 | 68 | 146 | 14 | 3 | 25 | no |
| **3090** | 1 | 38 | 38 | 26 | 15 | 25 | no |
|  | 2 | 58 | 59 | 50 | 17 | 30 | no |
|  | 3 | 116 | 118 | 100 | 2 | 25 | no |
| **3091** | 1 | 26 | 26 | 24 | 5 | 20 | yes |
|  | 2 | 40 | 40 | 37 | 4 | 20 | yes |
|  | 3 | 80 | 80 | 74 | 3 | 20 | no |
| **3092** | 1 | 47 | 47 | 47 | 5 | 20 | yes |
|  | 2 | 70 | 70 | 70 | 4 | 20 | yes |
|  | 3 | 140 | 140 | 140 | 3 | 20 | no |
| **3240** | 1 | 33 | 28 | 3 | 5 | 25 | yes |
|  | 2 | 50 | 42 | 4 | 4 | 25 | no |
|  | 3 | 100 | 84 | 8 | 3 | 25 | no |
| **3250** | 1 | 17 | 32 | 26 | 5 | 25 | no |
|  | 2 | 26 | 48 | 40 | 4 | 25 | no |
|  | 3 | 52 | 96 | 80 | 3 | 25 | no |

---

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-23

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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14.10 Mineral
 Resource Classification

Mineral resources were estimated in conformity with generally accepted CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (2019). Mineral resources are not mineral reserves and do not have demonstrated economic viability.

The mineral resources may be impacted by further infill and exploration drilling that may result in an increase or decrease in future resource evaluations. The mineral resources may also be affected by subsequent assessment of mining, environmental, processing, permitting, taxation, socio-economic and other factors. There is insufficient information in this early stage of study to assess the extent to which the mineral resources will be affected by factors such as these that are more suitably assessed in a scoping or conceptual study.

Mineral resources for the Bolivar deposit were classified according to the CIM Definition Standards for Mineral Resources and Mineral Reserves (2014) as approved by Garth Kirkham, P.Geo., an "independent qualified person" as defined by National Instrument 43-101.

Drillhole spacing in the Bolivar deposit is sufficient for preliminary geostatistical analysis and evaluating spatial grade variability. Kirkham Geosystems is, therefore, of the opinion that the amount of sample data is adequate to demonstrate very good confidence in the grade estimates for the deposit.

The estimated blocks were classified according to the following:

● Confidence in interpretation of the mineralized zones;

● Number of data used to estimate a block;

● Number of composites allowed per drillhole; and

● Distance to nearest composite used to estimate a block.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-24

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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The classification of resources was based primarily on distance to the nearest composite; however, all of the quantitative measures, as listed here, were inspected and taken into consideration. In addition, the classification of resources for each zone was considered individually by virtue of their relative depth from surface and the ability to derive meaningful geostatistical results.

The estimation plan entailed a multiple pass strategy where each pass utilized increasingly restrictive search distances and parameters. Each individual vein employs differing search distances and parameters as listed in Table 14-8. Therefore, blocks that are estimated within the first pass are assigned as measured, those estimated within the second pass are assigned indicated and those estimated in the third pass are assigned as inferred.

Furthermore, an interpreted boundary was created for the indicated and inferred threshold in order to exclude orphans and reduce "spotted dog" effect. The remaining blocks may be unclassified and may be considered as geologic potential for further exploration.

Furthermore, in consideration for the requirement for resources to possess a "reasonable prospect of eventual economic extraction" (RP3E), underground mineable shapes were created that displayed continuity based on cut-off grades and classification. Additionally, these RP3E shapes also took into account must-take material that may fall below cut-off grade but will be extracted by mining in the event that adjacent economic material is extracted making below cut-off material by virtue of the mining costs being paid for.

**Figure 14-20: Long Section View of the Bolivar Deposit Showing Resource Block by Classification**

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-25

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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14.11 ZnEq
 and NSR Calculation

The mineral resources reported herein are reporting based on zinc equivalent or ZnEq. The parameters that were considered for the ZnEq and NSR calculation are listed in Table 14-9.

Cut-off criteria was developed based on a ZnEq formula as follows:

*ZnEq = Zn% + 0.7 x Pb% + 0.046 x Ag (g/t)*

 

**Table 14-9: ZnEq and NSR Calculation Parameters**

---

| | |
|:---|:---|
| **Metal Prices** |  |
| Ag | 25.20 $/oz |
| Pb | 1.20 $/lb |
| Zn | 1.38 $/lb |
| **Lead Concentrate** |  |
| Pb recovery | 70% |
| Pb grade | 27% |
| Ag recovery | 51% |
| Pb Payable | 89% |
| Ag Payable | 95% |
| Pb Royalty | 5% |
| Ag Royalty | 6% |
| Treatment Charges | 133 $/t |
| Transportation | 158 $/t |
| **Zinc Concentrate** |  |
| Zn recovery | 91% |
| Zn grade | 53% |
| Ag recovery | 39% |
| Zn Payable | 85% |
| Ag Payable | 61% |
| Zn Royalty | 5% |
| Ag Royalty | 6% |
| Treatment Charges | 277 $/t |
| Transportation | 180 $/t |
| Port Fees | 40 $/t |

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BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-26

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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14.12 Mined
 Out and Sterilized Areas

Due to the fact that the Bolivar Mine has been and continues to be in production for a significant number of years, it is extremely important to identify and exclude areas that are no longer available for future mining. This includes areas that have development and ramping, areas that have been mined out, areas that have been sterilized by mining operations or other reasons and pillars that have been left behind but not accessible. Figure 14-21 shows a plan view of the existing underground development, pillars, mined out areas along with areas sterilized be mining or geotechnical hazards. Figure 14-22 illustrates the classified resources with the classified block model for the Pomabamba-Bolivar-Nané vein (3000, 3010, 3020) with the development, pillars, mined out and sterilized material colour coded in blue.

**Figure 14-21: Plan View of Development, Pillars, Mined Out and Sterilized**

![](ex99-29_094.jpg)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-27

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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**Figure 14-22: Classified Resources with Pillars, Mined Out and Sterilized Areas (Blue)**

![](ex99-29_095.jpg)

14.13 Resource
 Validation

A graphical validation was completed on the block model. This type of validation serves the following purposes:

● Checks the reasonableness of the estimated grades based on the estimation plan and the nearby composites;

● Checks that the general drift and the local grade trends compare to the drift and local grade trends of the composites;

● Ensures that all blocks in the core of the deposit have been estimated;

● Checks that topography has been properly accounted for;

● Checks against manual approximate estimates of tonnages to determine reasonableness; and

● Inspects for and explains potentially high-grade block estimates in the neighbourhood of the extremely high assays.

A full set of cross sections, long sections and plans were used to digitally check the block model; these showed the block grades and composites. There was no indication that a block was wrongly estimated, and it appears that every block grade could be explained as a function of the surrounding composites and the applied estimation plan.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-28

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| ![](ex99-29_002.jpg) | ![](ex99-29_003.jpg) |

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The validation techniques included the following:

● Visual inspections on a section-by-section and plan-by-plan basis;

● Use of grade-tonnage curves;

● Swath plots comparing kriged estimated block grades with inverse distance and nearest neighbour estimates; and

● Inspection of histograms showing distance from first composite to nearest block, and average distance to blocks for all composites which gives a quantitative measure of confidence that blocks are adequately informed in addition to assisting in the classification of resources.

**Figure 14-23: Long Section View of Bolivar Block Model with ZnEq Cut-off Grades**

![](ex99-29_096.jpg)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-29

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**Figure 14-24: Long Section View of Measured, Indicated and Inferred Blocks with ZnEq Cut-off Grades along with Mined Out and Sterilized Areas**

![](ex99-29_097.jpg)

**Figure 14-25: Long Section View of Measured and Indicated Blocks with ZnEq Cut-off Grades along with Mined Out and Sterilized Areas**

![](ex99-29_098.jpg)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-30

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**Figure 14-26: Long Section View of Inferred Blocks with ZnEq Cut-off Grades along with Mined Out and Sterilized Areas**

![](ex99-29_099.jpg)

14.14 Sensitivity
 of the Block Model to Selection Cut-off Grade

The mineral resources are not particularly sensitive to the selection of cut-off grade. Table 14-10 shows the total resources for all metals at varying ZnEq cut-off grades. The reader is cautioned that these values should not be misconstrued as a mineral reserve. The reported quantities and grades are only presented as a sensitivity of the resource model to the selection of cut-off grades.

Note that the base case cut-off grades presented in Table 14-10 are based on potentially underground, mineable resources at the base case of 10.6% zinc equivalent.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-31

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**Table 14-10: Sensitivity Analyses at Various ZnEq Cut-off Grades for Measured, Indicated and Inferred Resources**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Classification** | **Cut-off** | **Tonnes** | **ZnEq** | **Sg** | **Thickness** | **Zn** | **Ag** | **Pb** |
| **Measured** | >=14 | 720000 | 31.90 | 3.21 | 1.69 | 13.91 | 368.17 | 1.51 |
|  | >=12 | 802000 | 29.97 | 3.19 | 1.68 | 13.21 | 342.53 | 1.42 |
|  | **>=10.6** | **855000** | **28.80** | **3.18** | **1.67** | **12.78** | **327.39** | **1.37** |
|  | >=10 | 874000 | 28.40 | 3.17 | 1.66 | 12.63 | 322.15 | 1.36 |
|  | >=8 | 929000 | 27.27 | 3.16 | 1.65 | 12.19 | 307.84 | 1.31 |
|  | >=6 | 966000 | 26.49 | 3.15 | 1.63 | 11.86 | 298.45 | 1.28 |
|  | >=4 | 983000 | 26.12 | 3.15 | 1.62 | 11.70 | 294.29 | 1.26 |
|  | >=2 | 994000 | 25.86 | 3.14 | 1.62 | 11.58 | 291.25 | 1.25 |
| **Indicated** | >=14 | 560000 | 29.72 | 3.19 | 1.40 | 13.28 | 336.45 | 1.38 |
|  | >=12 | 624000 | 28.00 | 3.17 | 1.40 | 12.69 | 312.92 | 1.30 |
|  | **>=10.6** | **677000** | **26.70** | **3.16** | **1.40** | **12.24** | **295.37** | **1.25** |
|  | >=10 | 696000 | 26.24 | 3.15 | 1.40 | 12.09 | 289.07 | 1.22 |
|  | >=8 | 773000 | 24.53 | 3.14 | 1.39 | 11.50 | 265.84 | 1.14 |
|  | >=6 | 820000 | 23.54 | 3.13 | 1.37 | 11.10 | 253.73 | 1.10 |
|  | >=4 | 837000 | 23.18 | 3.12 | 1.37 | 10.93 | 249.74 | 1.08 |
|  | >=2 | 842000 | 23.06 | 3.12 | 1.36 | 10.88 | 248.38 | 1.08 |
| **Inferred** | >=14 | 3603000 | 32.45 | 3.12 | 1.91 | 10.76 | 455.45 | 1.07 |
|  | >=12 | 3951000 | 30.74 | 3.11 | 1.87 | 10.54 | 423.54 | 1.03 |
|  | **>=10.6** | **4203000** | **29.58** | **3.11** | **1.85** | **10.35** | **402.91** | **1.00** |
|  | >=10 | 4319000 | 29.06 | 3.11 | 1.85 | 10.26 | 393.68 | 0.98 |
|  | >=8 | 4622000 | 27.75 | 3.10 | 1.82 | 9.98 | 371.92 | 0.95 |
|  | >=6 | 5058000 | 25.98 | 3.08 | 1.83 | 9.44 | 345.75 | 0.90 |
|  | >=4 | 5221000 | 25.32 | 3.08 | 1.82 | 9.24 | 336.19 | 0.88 |
|  | >=2 | 5535000 | 24.04 | 3.07 | 1.79 | 8.82 | 318.12 | 0.84 |

---

Notes:

1) The current Resource Estimate was prepared by Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd.;

2) All mineral resources have been estimated in accordance with CIM definitions, as required under NI 43-101;

3) The Mineral Resource Estimate was prepared using a 10.6% zinc equivalent cut-off grade. Cut-off grades were derived from $25.20/oz silver, $1.38/lb zinc and $1.20/lb lead, and process recoveries of 91% for zinc, 70% for lead, and 89.7% for silver. This cut-off grade was based on current smelter agreements and total OPEX costs of $120.22/t based on 2022 actual costs plus capital costs of $48.68/t, with process recoveries of 91.0% for zinc, 70.0% for lead, and 89.7% for silver. All prices are stated in $USD;

4) An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration; and

5) Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not account for a resource's mineability, selectivity, mining loss, or dilution. All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-32

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14.15 Mineral
 Resource Statement

Table 14-11 shows the Mineral Resource Statement for the Bolivar deposit.

The Qualified Person evaluated the resource in order to ensure that it meets the condition of "reasonable prospects of eventual economic extraction" as suggested under NI 43-101. The criteria considered were confidence, continuity and economic cut-off. The resource listed below is considered to have "reasonable prospects of eventual economic extraction".

The Mineral Resource Estimate which updates the previously reported estimate, incorporates data from new drilling conducted in 2020-2021 that successfully delineated a major new deposit on the Project and significantly increased the resource base in both the Indicated and Inferred Resource categories.

**Table 14-11: Base-Case Total Mineral Resources at 10.6% ZnEq Cut-off**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Total Bolivar 2023 Mineral Resources** | **Total Bolivar 2023 Mineral Resources** | **Total Bolivar 2023 Mineral Resources** | **Total Bolivar 2023 Mineral Resources** | **Total Bolivar 2023 Mineral Resources** | **Total Bolivar 2023 Mineral Resources** |
| **Mine** | **Category** | **Tonnes ('000)** | **Zn (%)** | **Pb (%)** | **Ag (g/t)** |
| **Bolivar** | Measured | 855 | 12.78 | 1.37 | 327 |
|  | Indicated | 677 | 12.24 | 1.25 | 295 |
|  | **Total M+I** | **1532** | **12.54** | **1.32** | **313** |
|  | **Inferred** | **4202** | **10.35** | **1.00** | **403** |

---

Notes:

1) The current Resource Estimate was prepared by Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd.;

2) All mineral resources have been estimated in accordance with CIM definitions, as required under NI 43-101;

3) The Mineral Resource Estimate was prepared using a 10.6% zinc equivalent cut-off grade. Cut-off grades were derived from $25.20/oz silver, $1.38/lb zinc and $1.20/lb lead, and process recoveries of 91% for zinc, 70% for lead, and 89.7% for silver. This cut-off grade was based on current smelter agreements and total OPEX costs of $120.22/t based on 2022 actual costs plus capital costs of $48.68/t, with process recoveries of 91.0% for zinc, 70.0% for lead, and 89.7% for silver. All prices are stated in $USD;

4) An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration; and

5) Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not account for a resource's mineability, selectivity, mining loss, or dilution. All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-33

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**Table 14-12: Base-Case Total Mineral Resources at 10.6% ZnEq Cut-off Split by Area**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Bolivar Mineral Resources (January 1, 2023)** | **Bolivar Mineral Resources (January 1, 2023)** | **Bolivar Mineral Resources (January 1, 2023)** | **Bolivar Mineral Resources (January 1, 2023)** | **Bolivar Mineral Resources (January 1, 2023)** | **Bolivar Mineral Resources (January 1, 2023)** |
| **Mine** | **Category** | **Tonnes ('000)** | **Zn (%)** | **Pb (%)** | **Ag (g/t)** |
| **Central** | Measured | 661 | 14.15 | 1.39 | 363.40 |
|  | Indicated | 523 | 13.40 | 1.25 | 324.87 |
|  | **Total M+I** | **1184** | **13.82** | **1.33** | **346.38** |
|  | Inferred | **2731** | **11.14** | **0.87** | **527.21** |
| **Rosario** | Measured | 194 | 8.12 | 1.31 | 204.74 |
|  | Indicated | 154 | 8.30 | 1.22 | 194.92 |
|  | **Total M+I** | **348** | **8.20** | **1.27** | **200.40** |
|  | Inferred | **1471** | **8.87** | **1.24** | **172.20** |
| **Total Bolivar** | Measured | 855 | 12.78 | 1.37 | 327.39 |
|  | Indicated | 677 | 12.24 | 1.25 | 295.37 |
|  | **Total M+I** | **1532** | **12.54** | **1.32** | **313.24** |
|  | Inferred | **4202** | **10.35** | **1.00** | **402.93** |

---

Notes:

1) The current Resource Estimate was prepared by Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd.;

2) All mineral resources have been estimated in accordance with CIM definitions, as required under NI 43-101;

3) The Mineral Resource Estimate was prepared using a 10.6% zinc equivalent cut-off grade. Cut-off grades were derived from $25.20/oz silver, $1.38/lb zinc and $1.20/lb lead, and process recoveries of 91% for zinc, 70% for lead, and 89.7% for silver. This cut-off grade was based on current smelter agreements and total OPEX costs of $120.22/t based on 2022 actual costs plus capital costs of $48.68/t, with process recoveries of 91.0% for zinc, 70.0% for lead, and 89.7% for silver. All prices are stated in $USD;

4) An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration; and

5) Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not account for a resource's mineability, selectivity, mining loss, or dilution. All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

14.16 Discussion
 with Respect to Potential Material Risks to the Resources

The current political and socio-economic climate in Bolivia poses risks and uncertainties that could delay or even stop development as reported within the Fraser Institute Annual Report 2022 where Bolivia ranks very low in many non-technical metrics. Bolivia has been ranked consistently low for the past five years and ranks in the lower quartile on all metrics that gauge risk and uncertainty. It is difficult to gauge or qualify the level or extents of the risks however, all companies working in Bolivia must continue to be aware of the potential risks and develop mitigation strategies. A significant risk related to the Santacruz Bolivian mineral assets and in particular the mineral resources and mineral reserves is the significant artisanal activity that continues to exist. This activity is not only a socio-economic risk but also affects access to resources and reserves along with potential sterilization of mineral resources.

Apart from political and socio-economic risks there are no other known environmental, permitting, legal, taxation, title or other relevant factors that materially affect the resources apart from commodity price fluctuations particularly on the downside.

The Bolivar deposit consists of very many high-grade thin veins. These types of deposits are very sensitive to grade as the size and geometry must be economically viable as they must support selective mining methods and be able to withstand high levels of dilutive material.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 14-34

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15 Mineral Reserve Estimate

15.1 Summary

The January 1, 2023 reserve estimate represents the validation of Santacruz's internally-generated mineral reserve estimate by QP Goodwin. All work on the reserve by the Santacruz mine design team and the validation exercises were done in Deswik<sup>TM</sup>. The following process was used for this work:

● An NSR calculation and cut-off grade (COG) was developed by the QP using data provided by Santacruz;

● The reserve estimation methodology was reviewed, checked, and approved by the QP;

● Mine technical staff prepared a Life of Mine Plan (LOM) for the deposits using the NSR and COG provided by the QP. The LOM plan was prepared specifically for this reserve estimation, as the annual budget includes mining in inferred resources; and

● All LOM models were downloaded and reviewed by the QP for conformance to the methodology, proper application of the NSR cut-off grade, and correct application of agreed upon dilution and recovery factors.

The QP is satisfied that this exercise resulted in a valid reserve determination.

15.2 Definitions

A Mineral Reserve is the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at Pre-Feasibility or Feasibility level as appropriate that include application of Modifying Factors. This Feasibility Study includes adequate information and considerations on mining, processing, metallurgical, infrastructure, economic, marketing, environmental and other relevant factors that demonstrate, at the time of reporting, that economic extraction could reasonably be justified.

Mineral Reserves are those parts of Mineral Resources which, after the application of all mining factors, result in an estimated tonnage, and grade which, in the opinion of the Qualified Person(s) making the estimates, is the basis of an economically viable Project after taking account of all relevant Modifying Factors. Mineral Reserves are inclusive of diluting material that will be mined in conjunction with the Mineral Reserves and delivered to the treatment plant or equivalent facility. The term "Mineral Reserve" need not necessarily signify that extraction facilities are in place or operative or that all governmental approvals have been received. It does signify that there are reasonable expectations of such approvals.

Mineral Reserves are subdivided in order of increasing confidence into Probable Mineral Reserves and Proven Mineral Reserves. A Probable Mineral Reserve has a lower level of confidence than a Proven Mineral Reserve.

The reserve classifications used in this report conform to the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) classification of NI 43-101 resource and reserve definitions and Companion Policy 43-101CP. These are listed below.

SANTACRUZ SILVER MINING LTD. \| BOLIVAR TECHNICAL REPORT PAGE 15-1

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A "Proven Mineral Reserve" is the economically mineable part of a Measured Mineral Resource. A Proven Mineral Reserve implies a high degree of confidence in the Modifying Factors.

Application of the Proven Mineral Reserve category implies that the Qualified Person has the highest degree of confidence in the estimate with the consequent expectation in the minds of the readers of the report. The term should be restricted to that part of the deposit where production planning is taking place and for which any variation in the estimate would not significantly affect potential economic viability of the deposit. Proven Mineral Reserve estimates must be demonstrated to be economic, at the time of reporting, by at least a Pre-Feasibility Study. Within the CIM Definition standards the term Proved Mineral Reserve is an equivalent term to a Proven Mineral Reserve.

A "Probable Mineral Reserve" is the economically mineable part of an Indicated Mineral Resource, and in some circumstances a Measured Mineral Resource. The confidence in the Modifying Factors applying to a Probable Mineral Reserve is lower than that applying to a Proven Mineral Reserve.

15.3 NSR
 and COG Determinations

15.3.1 Operating
 Costs

Operating costs for the reserve estimation were based on actual costs derived from 2022 operations, as summarized in Table 15-1.

**Table 15-1: Actual Operating Costs for 2022 by Category**

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| | |
|:---|:---|
| **Category** | **$/t** |
| Mining | 87.46 |
| Processing | 18.28 |
| G&A | 14.48 |
| **Total** | **120.22** |

---

15.3.2 Metal
 Prices

The metal prices used to determine the 2023 Mining Reserve are as follows:

● Lead $1.00 /lb;

● Zinc $1.15 /lb; and

● Silver $21.00 /oz.

The derivation and rationale for these price selections is discussed in discussed in Section 19.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 15-2

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15.3.3 Metallurgical
 Recoveries

The metallurgical recoveries of payable metals were based on 2022 mill operating performance as follows:

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| | |
|:---|:---|
| Lead: | 70.0% to the lead concentrate |
| Zinc: | 69.0% to the zinc concentrate |
| Silver: | A total of 89.7% recovery; 51.0% to the lead concentrate and 38.7% to the zinc concentrate. |

---

15.3.4 Smelter
 Terms

There are two concentrates that are produced and sent to Antofagasta in Chile for shipment overseas. Both concentrates are sold to Glencore. Smelter terms were based on actual invoicing. These include typical payment terms for all payable metals (Pb, Zn, Ag) and deductions for deleterious elements (Sb and Bi in the zinc concentrate and SiO<sub>2</sub> in the lead concentrate. Off-site costs for freight, port fees, sampling, and silver refining are included in the analysis at the actual rates.

15.3.5 Net
 Smelter Return and Cut-off Criteria

The combination of all factors discussed in this section results in the following NSR formula for the 2023 Mining Reserve:

*NSR = $9.56 x Zn% + 6.7 x Pb% + 0.44 x Ag (g/t)*

 

Cut-off criteria was developed based on a ZnEq formula as follows:

*ZnEq = Zn% + 0.7 x Pb% + 0.046 x Ag (g/t)*

 

A cut-off grade of 12.7% ZnEq was applied to the reserve estimation based on this equation.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 15-3

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15.4 Estimation
 Methodology

The reserves were estimated in Deswik. The NSR formula and ZnEq were applied to the block model. Stope optimization was then performed to the resource to generate stope shapes for evaluation.

The following factors were set for the stope optimization exercise: minimum stope width (1.2 m for 3050, 3090, 3091, and 3092 veins; and 1.5 m for all other veins), maximum stope width (15 m), minimum pillar width (5 m), minimum slope of the stope (35°), minimum stope height (10 m), and maximum stope height (13 m).

Dilution and recovery factors were applied as follows:

● Development: 95% recovery without dilution applied; and

● Sublevel Open Stoping mining method: 85% recovery and 12.5% dilution.

Once generated, solids below the COG of 12.7% ZnEq were then eliminated as well as any inferred resources.

A development layout was then prepared for each stope to determine access requirements. A development and production schedule were then prepared in Deswik.

15.5 Mineral
 Reserve Estimate

The Mineral Reserve Estimate for Bolivar Mine is shown in Table 15-2.

**Table 15-2: Mineral Reserve Estimate for Bolivar Mine (January 1, 2023)**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Mine** | **Category** | **Tonnes** | **Zn (%)** | **Pb (%)** | **Ag (g/t)** |
| **Central** | Proven | 653000 | 11.37 | 1.16 | 311 |
|  | Probable | 420000 | 9.57 | 0.84 | 237 |
|  | **Total** | **1073000** | **10.66** | **1.04** | **282** |
| **Rosario** | Proven | 89000 | 5.40 | 2.34 | 215 |
|  | Probable | 74000 | 5.27 | 1.64 | 209 |
|  | **Total** | **164000** | **5.34** | **2.03** | **212** |
| **Total Bolivar** | Proven | 742000 | 10.65 | 1.31 | 299 |
|  | Probable | 495000 | 8.92 | 0.97 | 233 |
|  | **Total** | **1237000** | **9.96** | **1.17** | **273** |

---

These reserves could be impacted by changes to mine operating costs, metallurgical recoveries, changes to permitting status, and the availability of tailings storage. No significant variations from current assumptions for these aspects are currently anticipated.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 15-4

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16 Mining Methods

16.1 Introduction

The Bolivar Mine has been in continuous operation for 200 years through various operators. The application of mining methods has thus been an adaptation of mining equipment technologies, evaluation and monitoring tools to the specific mineralized zones. The last decade of operations, under the guidance of Glencore, the mine has seen a move to more mechanized methods to improve safety performance and mine productivity.

The steeply dipping and relatively wide mineralized zones were intuitively adaptable to mechanization, however, the geotechnical evaluation also supports using more productive methods. In addition to historical and empirical knowledge about the deposit, a systematic evaluation included such other deposit qualities as:

● Safety aspects, Environmental risks, Social impacts;

● Shape, geometry, consistency, and volume;

● Both mineralization and wall rock quality (strength, Fracture characterizations, in-situ strength, regional stress);

● Stability, and Support requirements;

● Grades, NSR Value, potential extraction rate;

● Mechanization/automation, use of gravity, flexibility and adaptability; and

● Unit costs, time to production, dilution, development requirements.

Based on continuously evaluated performance of the selected mining system, improvements are always being considered based on the aforementioned criteria and economic performance.

The mine currently operates at a production rate of approximately 870 t/d with a current LOM of four years based on the current reserve.

16.2 Geotech
 Analysis & Recon

Analysis of structural domains using the rock mass (RMR) classification system, show variation in the rock mass with the mineralized domain being relatively weaker than the Hanging and footwalls.

The geomechanical characterization is shown in Table 16-1.

SANTACRUZ SILVER MINING LTD. \| BOLIVAR TECHNICAL REPORT PAGE 16-1

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**Table 16-1: Geomechanical Characterization**

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Structural Domain** | **RMR** | **Type** | **Quality** | **Max Openings (m)** | **Self-Sustainability Time (1m)** | **Excavation Length (m)** | **Observations (respect to AR 1.15m)** |
| Hangingwall | 41 a 55 | R III-B | Regular B | 3.3 a 6.2 | 2 months to 2 years | 1.5 a 3 | Stable Zone |
| On the Vein | 30 a 45 | R IV-A | Bad A | 2.0 a 3.9 | 1 day to 2 months | 1.0 a 2.3 | Potentially Unstable Zone |
| Footwall | 41 a 55 | R III-B | Regular B | 3.3 a 6.2 | 2 months to 2 years | 1.5 a 3 | Stable Zone |

---

Source: Santacruz (2022)

The flexibility and adaptability of the sub-level stoping method meets all selection criteria as well as geological and geotechnical characteristics of the rock mass. This method is used for all mineralized vein structures with widths greater than 1.0 m and dipping greater than 50°.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 16-2

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**Table 16-2: Geomechanical Stability Analysis**

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Case: Stability Status Summary** | **Case: Stability Status Summary** | **Case: Stability Status Summary** | **Case: Stability Status Summary** | **Case: Stability Status Summary** | **Case: Stability Status Summary** | **Case: Stability Status Summary** | **Case: Stability Status Summary** | **Case: Stability Status Summary** | **Case: Stability Status Summary** |
| Stability Status | **Stope Design Dimensions** | **Stope Design Dimensions** | **Stope Design Dimensions** | **Stope Design Dimensions** | **Stope Design Dimensions** | **Stope Design Dimensions** | **Stope Design Dimensions** | **Stope Design Dimensions** | **Stope Design Dimensions** |
| Stability Status | **Hangingwall <br> (Regular Quality III-B** | **Hangingwall <br> (Regular Quality III-B** | **Hangingwall <br> (Regular Quality III-B** | **On the Vein <br> (Bad Quality IV-A)** | **On the Vein <br> (Bad Quality IV-A)** | **On the Vein <br> (Bad Quality IV-A)** | **Footwall <br> (Regular Quality III-B)** | **Footwall <br> (Regular Quality III-B)** | **Footwall <br> (Regular Quality III-B)** |
| Stability Status | 17 x 40 m | 15 x 40 m | 15 x 20 m | 17 x 40 m | 15 x 40 m | 15 x 20 m | 17 x 40 m | 15 x 40 m | 15 x 20 m |
| Stable without Support |  |  |  |  |  |  |  |  | X |
| Transition | X | X | X |  |  | X | X | X |  |
| Stable with Support |  |  |  | X | X |  |  |  |  |
| **Case: Isoprobability Stability Contours** | **Case: Isoprobability Stability Contours** | **Case: Isoprobability Stability Contours** | **Case: Isoprobability Stability Contours** | **Case: Isoprobability Stability Contours** | **Case: Isoprobability Stability Contours** | **Case: Isoprobability Stability Contours** | **Case: Isoprobability Stability Contours** | **Case: Isoprobability Stability Contours** | **Case: Isoprobability Stability Contours** |
| Stability Status | **Stope Design Dimensions** | **Stope Design Dimensions** | **Stope Design Dimensions** | **Stope Design Dimensions** | **Stope Design Dimensions** | **Stope Design Dimensions** | **Stope Design Dimensions** | **Stope Design Dimensions** | **Stope Design Dimensions** |
| Stability Status | **Hangingwall <br> (Regular Quality III-B** | **Hangingwall <br> (Regular Quality III-B** | **Hangingwall <br> (Regular Quality III-B** | **On the Vein <br> (Bad Quality IV-A)** | **On the Vein <br> (Bad Quality IV-A)** | **On the Vein <br> (Bad Quality IV-A)** | **Footwall <br> (Regular Quality III-B)** | **Footwall <br> (Regular Quality III-B)** | **Footwall <br> (Regular Quality III-B)** |
| Stability Status | 17 x 40 m | 15 x 40 m | 15 x 20 m | 17 x 40 m | 15 x 40 m | 15 x 20 m | 17 x 40 m | 15 x 40 m | 15 x 20 m |
| Stable without Support |  |  |  |  |  |  |  |  | 63% |
| Transition | 25% | 33% | 52% |  |  | 18% | 38% | 48% |  |
| Stable with Support |  |  |  | 7% | 9% |  |  |  |  |

---

Source: Santacruz (2022)

16.3 Mining
 Methods

The adaptation of the Sub-level stoping system to the Bolivar Mine is described below.

16.3.1 Mine
 Design

The Property consists of two mining areas:

● Mina Central – is the extension of the historic mining area and extends down to the minus 430 level (430 m below primary surface access). Multiple parallel and intersecting vein structures are mined, and this area accounts for approximately 75% of the total mine production; and

● Mina Rosario – is a parallel structure recently defined which is accessed and serviced separately and account for approximately 25% of the total mine production.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 16-3

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16.3.2 Stoping

Each stoping block is prepared by driving an upper and lower Gallery along strike and in the vein approximately 50 m vertically apart. These main galleries are driven 4.0 m x 4.0 m. Sublevels are driven with a smaller cross section of 3.0 x 3.5 m approximately 15 m vertically apart with a 5 m sill pillar as shown in Figure 16-1. Production drilling is with up-holes from the sublevels, and a drift is also driven right below the sill pillar for transporting backfill.

**Figure 16-1: Sub Level Stoping Scheme**

Source: Santacruz (2022)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 16-4

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**Figure 16-2: Long Section of Typical Sub Level Stoping Operation**

Source: Santacruz (2022)

Depending on the dip, the sublevel stoping heights are approximately 12 m, except for the 2<sup>nd</sup> sublevel, which has a height of 9 m due to the backfill drift. Break raises are driven conventionally, and the flexibility of the method allows for vertical pillars if needed to adjust for low grade areas, or to subdivide stoping blocks to provide production flexibility.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 16-5

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**Figure 16-3: Cross Section of Typical Sub Level Stoping Operation**

Source: Santacruz (2022)

Stoping progresses from bottom to top in each block and backfill of each panel is sourced from development within the mine. The contribution of the Sub-Level stope production represents approximately 70% of the total production of Mina Bolivar, the other 30% originating from secondary development.

The mechanization of the Sub Level Stoping method has improved the safety of the operation by minimizing direct exposure to the face by the miners, as opposed to the conventional shrinkage and Cut and Fill methods with jackleg drills that was previously used.

The method also allows the operation to increase production and flexibility to facilitate blending from different stoping areas to control grade and metallurgical criteria.

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Benefits experienced include:

● Greater safety performance due to mechanization;

● Higher production;

● Allows regulating the grades for the rapid disposal of mineral;

● The preparation, exploitation and transportation process are continuous and independent;

● No stoping ground support is required prior to backfilling; and

● Lower cost per tonne compared to a conventional exploitation method.

The disadvantages of the method are:

● Selectivity is compromised, and dilution is a risk if drilling and blasting factors are not controlled;

● There is a 95% recovery; and

● Variable fragmentation from stopes.

16.3.3 Development

Mine Access is trackless via ramps which access the deepest levels of each mining area from the surface. Existing shafts are still used to transport Mineralized material to surface, but all access for men and materials utilize the main ramp.

The methods for driving development openings have evolved over the past decade or so in response to a period of high accident frequency rates where it was determined that the main cause of severe injuries was related to rock falls. A systematic and progressive program was established to implement controls and methods to mitigate exposure to this danger.

Until 2014, support was only carried out with timber in the worst sectors according to informal evaluations of the rock conditions. Subsequently, the specific installation of support bolts (Split set or Hydrabolt) was implemented in the back of the drifts according to the evaluation of the rock mass. Currently the primary developments (ramps, counter galleries, cutouts, entrances, etc.) have support in the back and ribs with steel mesh and hydrabolts bolts.

The galleries of the secondary developments (levels, sublevels, etc.) are supported in the back and ribs with electro-welded mesh and Split Set bolts. Figure 16-4 illustrates the progression of methodology.

**Figure 16-4: Evolution of the Rock Mass Support System**

Source: Glencore (2021)

In 2017, the installation of bolts (Split set or Hydrabolt) and electro-welded mesh on the back of the drift was standardized with a tolerance margin of 10 to 15 m without support on the advance front according to the quality assessment of the rock mass.

Currently, the support standard consists of the installation of bolts and electro-welded mesh on the roof and sides of the gallery (up to the gradient) to the advance front using electro-hydraulic equipment applying the 2 golden rules:

● Meter advanced equals meter supported; and

● Drilled hole, bolt installed.

The use of Jacklegs for horizontal development is minimized. Currently, the only "conventional" development being done is short raises which are driven with jacklegs and timber.

16.4 Mine
 Services

16.4.1 Ventilation

The ventilation system is independent for both the Central and Rosario Zones. Ventsim software is used to model and simulate each ventilation system, which facilitates the monitoring, evaluation and design of the ventilation system.

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16.4.2 Ventilation
 System – Central Zone

In this area, the ventilation system consists of 7 fresh air inlets (from left to right: CH-1, Dresser, CH-4, Box, Ramp, CH-5 and CH-7) and 2 exhaust outlets (CH- 8 and CH-Litoral).

**Figure 16-5: Ventilation Scheme – Central Zone**

![](ex99-29_104.jpg)

For the system to be dynamic, "main fans" are located in the exhaust side with ratings of between 200 HP and 600 HP.

16.4.3 Ventilation
 System – Rosario Zone

This area is in the development stage and requires less airflow than Central Zone. Total inflow is approximately 30,000 CFM.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 16-8

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**Figure 16-6: Ventilation Scheme – Rosario Zone**

![](ex99-29_105.jpg)

The ventilation system consists of a main inlet of fresh air through the Esperanza Level 0 raise and 2 exhaust air outlets; the Rosario Ramp and the conventional raise from Esperanza Level 1 to the surface.

16.4.4 Dewatering

The Central Zone has an appreciable quantity of groundwater inflow conducted via the mineralized veins. Most originates from surface sources so historically, the quantity varies according to season and surface rainfall, however as the mine progresses deeper, the seasonality effect is muted, and the quantity has stabilized at approximately 170 l/s.

**Figure 16-7: Flow Record for the Pumping System**

Source: Santacruz (2023)

The pumping system uses submersible pumps to collect water from the deepest production and development areas and transfers the water to the central dewatering infrastructure. At the main sump, a series of stationary pumps remove the water from the mine as described and shown in the pumping system diagram.

**Figure 16-8: Pumping Scheme – Central Zone**

Source: Santacruz (2023)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 16-9

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16.5 Unit
 Operations

Stoping is sequenced in ascending order from the Lower Gallery to the Fill Sublevel according to the following sequence.

Drilling is done using a Raptor 44 longhole drill, which is capable of radial drilling at angles from 0° to 360°:

● Burden = 1.0 m and spacing = 1.20 m;

● Longitudinal angle of 80°;

● Hole diameter of 64 mm;

● Drill steel 1.20 m coupled; and

● Casing of the drilled holes with PVC.

Blasting: is carried out using a "V" relief sequence using long period delays. This sequence allows control of the hanging and footwalls, avoiding fracturing and instability.

Cleaning and extraction: the broken mineral is cleaned from the stopes (Lower Gallery) using a remote controlled Scooptram operated at a relevant safety distance where there is a shelter with a solid structure for the operator (bunker). Haulage is carried out using DUX dump trucks which transport the mineral to the shaft for hoisting (Antequera Shaft).

Filling: not until the cleaning stage is completed, are the voids filled with waste rock delivered via the upper sublevel (1<sup>st</sup> Subn Level) to generate a solid floor in the 1<sup>st</sup> Subn Level.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 16-10

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**Figure 16-9: Remote Mucking Platform and Placement**

![](ex99-29_108.jpg)

16.5.1 Extraction
 and Transport System

In the deposit there are 2 main production zones: Central Zone and Rosario Zone with individual extraction systems that are described in the following points.

The greatest contribution in production and mineral quality comes from the Central Zone with the mineral contribution from the veins: Bolivar, Nané, Bolivar SW, Pomabamba and Nueva as the main contributors, with other veins of lesser importance that contribute to production.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 16-11

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**Figure 16-10: Extraction System Diagram**

![](ex99-29_109.jpg)

The extraction system consists of cleaning the advance headings or producing stopes with scooptrams directly to collection points and then loading the low-profile dump trucks that haul mineral to a central ore pass which is fitted with a chute at a main haulage level. From here the mineral is transported by trucks to the closest dump at the shaft where the mineral is hoisted to level 0. Another stage of truck haulage using conventional surface trucks takes the mineralized material to the concentrator plant.

From Rosario Zone the extraction system consists of cleaning the headings with scooptrams and transporting the mineral directly to the truck loading sites for extraction to the surface and subsequent transfer to concentrator plant.

16.6 Mine
 Equipment

The fleet of equipment for the Central and Rosario Zones performs the following tasks:

● Mine infrastructure (primary development): ramps, counter galleries, cuts, entrances, loading stations, shelters, collection chambers, pumping sumps, etc. and everything related to waste rock infrastructure;

● To carry out these tasks, electrohydraulic drilling jumbos are used, such as: Troidón and Muki, which are used depending on the size of the heading;

● Preparation drifts (secondary development on vein): main levels, sublevels and shelters;

● Muki electrohydraulic drilling jumbos are used;

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● Installation of ground support in drifts: this activity is carried out in the primary and secondary development drifts for the stability of the back and ribs;

● Electrohydraulic equipment such as: Small Bolter and Muki;

● Cleaning: this activity is carried out at the advance fronts and stope headings;

● Scooptrams with different capacities depending on the size of the heading;

● Extraction and transportation: transport of mineral and waste rock; and

● DUX dump trucks.

16.6.1 Drilling
 Equipment – Drill Jumbo

There are seven Resemin Muki FF single boom jumbo rigs with a power of 75 HP that drill between 2.4 and 3.0 m long holes. They are generally used for secondary development (horizontal vein developments) to prepare sublevels whose nominal dimensions are 3.0 m x 3.5 m. Occasionally they are used in small primary development headings.

**Table 16-3: Inventory of Drill Jumbo Electrohydraulic Equipment**

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Item** | **Category** | **Mine / Zone** | **Equipment Code** | **Model** | **Brand** | &nbsp;&nbsp;**Capacity<br> Range**<br> **(M)** | **Hp** | **Availability <br> (%)** | **Utilization<br> (%)** |
| 1 | Jumbo Drills | Central | MK-01 | MUKI FF | RESEMIN | 300 | 75 | 82 | 25 |
| 2 | Jumbo Drills | Central | MK-02 | MUKI FF | RESEMIN | 300 | 75 | 84 | 37 |
| 3 | Jumbo Drills | Central | MK-03 | MUKI FF | RESEMIN | 300 | 75 | 83 | 20 |
| 4 | Jumbo Drills | Central | MK-04 | MUKI FF | RESEMIN | 300 | 75 | 79 | 32 |
| 5 | Jumbo Drills | Central | MK-05 | MUKI FF | RESEMIN | 300 | 75 | 78 | 34 |
| 6 | Jumbo Drills | Central | MK-06 | MUKI FF | RESEMIN | 300 | 75 | 83 | 36 |
| 7 | Jumbo Drills | Central | TD-02 | TROIDON XP | RESEMIN | 350 | 100 | 89 | 42 |
| 8 | Jumbo Drills | Rosario | MK-07 | MUKI FF | RESEMIN | 300 | 75 | 83 | 20 |
| 9 | Jumbo Drills | Rosario | TD-01 | TROIDON XP | RESEMIN | 350 | 100 | 85 | 32 |

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Source: Santacruz (2023)

There are also two Resemin Troidón XP drill Jumbos with a power of 100 HP that can drill between 3.0 m and 3.5 m. These are used only for large primary development headings (3.5 m x 3.5 m or 4.0 m x 4.5 m) for mine infrastructure such as: ascending and descending ramps, cuts, counter galleries, etc.).

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 16-13

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16.6.2 Equipment
 for Support

There are two electrohydraulic jumbos (1 each in Central and Rosario Zones) to install support with steel mesh and Hydrabolt bolts of the back and ribs of primary development headings. These jumbos have a power of 75 HP with a drilling capacity of 3.0 m.

**Table 16-4: Inventory of Electrohydraulic Support Equipment**

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Item** | **Category** | **Mine / Zone** | **Equipment Code** | **Model** | **Brand** | &nbsp;&nbsp;**Capacity<br> Range**<br> **(M)** | **Hp** | **Availability <br> (%)** | **Utilization<br> (%)** |
| 1 | Rock Bolters | Central | JE-02 | SMALL BOLTER R99 | RESEMIN | 3 | 75 | 88 | 54 |
| 2 | Rock Bolters | Rosario | JE-03 | SMALL BOLTER R99 | RESEMIN | 3 | 75 | 95 | 41 |

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Source: Santacruz (2023)

Production Equipment – Long hole drills are used for drilling long holes using the "Sub Level Stoping" exploitation method. Due to the drilling and cleaning cycles, there is generally a drilling shift during each day, with monthly drilling performance of 1,200 m.

**Table 16-5: Inventory of Electrohydraulic Equipment for SLS Drilling**

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Item** | **Category** | **Mine / Zone** | **Equipment Code** | **Model** | **Brand** | &nbsp;&nbsp;**Capacity<br> Range**<br> **(m)** | **Hp** | **Availability <br> (%)** | **Utilization<br> (%)** |
| 1 | Longhole Drills | Central | RP-02 | RAPTOR 44 | RESEMIN | 20 | 100 | 87 | 16 |
| 2 | Longhole Drills | Central | RP-03 | RAPTOR 44 | RESEMIN | 20 | 100 | 87 | 10 |
| 3 | Longhole Drills | Central | RP-04 | RAPTOR 44 | RESEMIN | 20 | 100 | 89 | 18 |
| 4 | Longhole Drills | Rosario | RP-05 | RAPTOR 44 | RESEMIN | 20 | 100 | 93 | 21 |

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Source: Santacruz (2023)

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Mucking –Table 16-6 shows the distribution of equipment by area to clean mineralized material and waste rock. Depending on the type of work and the heading size, the appropriate equipment is used for cleaning, stockpiling and loading trucks.

**Table 16-6: Equipment Inventory – Scooptram**

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Item** | **Category** | **Mine / Zone** | **Equipment Code** | **Model** | **Brand** | &nbsp;&nbsp;**Capacity<br> Range**<br> **(yd<sup>3</sup>)** | **Hp** | **Availability <br> (%)** | **Utilization<br> (%)** |
| 1 | Scooptrams | Central | ST-21 | ST2G | EPIROC | 2 | 146 | 90 | 30 |
| 2 | Scooptrams | Central | ST-26 | R1300G | CATERPILLAR | 3.5 | 165 | 59 | 6 |
| 3 | Scooptrams | Central | ST-27 | ST7 | EPIROC | 3.5 | 160 | 84 | 50 |
| 4 | Scooptrams | Central | ST-28 | ST7 | EPIROC | 3.5 | 160 | 90 | 40 |
| 5 | Scooptrams | Central | ST-30 | ST2G | EPIROC | 2 | 110 | 58 | 40 |
| 6 | Scooptrams | Central | ST-31 | ST7 | EPIROC | 3.5 | 160 | 77 | 42 |
| 7 | Scooptrams | Central | ST-32 | ST2G | EPIROC | 2 | 160 | 77 | 56 |
| 8 | Scooptrams | Central | ST-33 | ST1030 | EPIROC | 5.9 | 250 | 81 | 58 |
| 9 | Scooptrams | Central | ST-34 | ST7 | EPIROC | 3.5 | 160 | 92 | 71 |
| 10 | Scooptrams | Central | ST-36 | ST1030 | EPIROC | 5.9 | 250 | 95 | 80 |
| 11 | Scooptrams | Rosario | ST-35 | ST7 | EPIROC | 3.5 | 160 | 94 | 82 |

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Source: Santacruz (2023)

Haulage Equipment – Like the scoops, the dump trucks are distributed by zones to cover the movement of mineralized and waste rock material. Depending on the size of the gallery, the appropriate equipment is used according to the size.

**Table 16-7: Equipment Inventory - Dump Trucks**

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Item** | **Category** | **Mine / Zone** | **Equipment Code** | **Model** | **Brand** | &nbsp;&nbsp;**Capacity<br> Range**<br> **(tonnes)** | **Hp** | **Availability <br> (%)** | **Utilization<br> (%)** |
| 1 | Trucks | Central | MT-12 | DT12 | DUX | 10 | 146 | 78 | 26 |
| 2 | Trucks | Central | MT-18 | DT12 | DUX | 10 | 146 | 71 | 24 |
| 3 | Trucks | Central | MT-21 | DT12 | DUX | 10 | 146 | 87 | 57 |
| 4 | Trucks | Central | MT-23 | DT12 | DUX | 10 | 146 | 80 | 51 |
| 5 | Trucks | Central | MT-07 | DT22N | DUX | 20 | 300 | 85 | 49 |
| 6 | Trucks | Central | MT-19 | MT2010 | EPIROC | 20 | 300 | 72 | 35 |
| 7 | Trucks | Central | MT-20 | TH315 | SANDVIK | 20 | 160 | 73 | 23 |
| 8 | Trucks | Central | MT-22 | DT22N | DUX | 20 | 375 | 85 | 48 |
| 9 | Trucks | Rosario | MT-24 | DT22N | DUX | 20 | 375 | 88 | 57 |
| 10 | Trucks | Rosario | MT-25 | DT22N | DUX | 20 | 375 | 94 | 46 |

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Source: Santacruz (2023)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 16-15

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Auxiliary Equipment - Auxiliary equipment is used for the transportation of equipment, personnel, and supplies, as well as maintenance of haulage and access ways. Additionally, there is auxiliary equipment through the provision of services by contracting companies for the transportation of personnel and materials.

**Table 16-8: Inventory of Company Owned Service and Transportation Equipment**

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Item** | **Category** | **Mine / Zone** | **Equipment Code** | **Model** | **Brand** | **Hp** | **Availability <br> (%)** | **Utilization<br> (%)** |
| 1 | Auxiliary Equipment | Central | TR-04 | D4G | CATERPILLAR | 45 | 85 | 30 |
| 2 | Auxiliary Equipment | Central | TR-03 | D4G | CATERPILLAR | 45 | 85 | 30 |
| 3 | Auxiliary Equipment | Central |  | LAND CRUISIER | TOYOTA | 40 | 85 | 20 |

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Source: Santacruz (2023)

16.6.3 Availability
 and Utilization Factors

As can be seen in the above tables, the equipment is in good operating condition, as is reflected in the high average availability numbers of between 81% and 86% and low utilization factors:

● Drill Equipment 29%

● Scooptrams 51%

● Trucks 42%

As expected, the ore haulage equipment has the highest utilization, but these numbers still suggest an ample provision of equipment for mining operations.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 16-16

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16.7 Mine
 Personnel

Total Manpower at the mine site including Mine, Plant, Maintenance, Services, and General and administrative in 2022 totaled 652 people consisting of 354 direct employees and 298 contractors. In the breakout table below, the contractors fill mostly the services roles.

**Table 16-9: Mine Personnel**

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|:---|:---|
| **Mine** | **200** |
| Plant | 48 |
| Engineering and Maintenance | 70 |
| General & Administrative | 36 |
| Contractors | 298 |
| **Total** | **652** |

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16.8 Production

Key production results for 2022 are shown in Table 16-10.

**Table 16-10: Production 2022**

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| | | | |
|:---|:---|:---|:---|
| | **Central Zone** | **Rosario Zone** | **Total** |
| Production (t) | 246009 | 72139 | 270104 |
| Waste rock (t) |  |  | 135200 |
| Backfill Hauled (t) |  |  | 171000 |
| Zinc (%) | 7.89 | 4.99 | 7.10 |
| Lead (%) | 0.75 | 0.89 | 0.65 |
| Silver (g/t) | 250 | 177 | 222 |
| Primary Devt Horizontal (m) | 2947 | 925 | 3872 |
| Primary Devt Vertical (m) | 159 | 69 | 228 |
| Secondary Devt Horizontal (m) | 2784 | 643 | 3427 |
| Secondary Devt Vertical (m) | 254 | 86 | 341 |

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BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 16-17

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17 Process Description / Recovery Methods

The Bolivar mill was built and commissioned in 1993 and has been in continuous operation since. The mill uses a flowsheet that is comprised of crushing, grinding, and differential flotation to recover lead and zinc in to two separate concentrates. Both the lead and zinc concentrates are sold to Glencore, shipped overseas via Antafagasta, Chile. The mill flowsheet can be found in Figure 17-1.

**Figure 17-1: Bolivar Mill Flowsheet**

Source: Glencore (2021)

SANTACRUZ SILVER MINING LTD. \| BOLIVAR TECHNICAL REPORT PAGE 17-1

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The mill receives feed from two sources: company mined feed and toll feed, which are processed separately. The two feeds are typically processed on different days, but there are times when they are processed on the same day, with a shutdown in between in order to ensure that the two feed sources can be measured independent of each other.

The company feed grades are determined on a daily basis by collecting and assaying samples of the process taken at the cyclone overflow, concentrates and final tailings. Each month, the production is reconciled to the measured feed tonnage using the concentrates sold and the final tailings to calculate the feed grade.

The toll feed is purchased from independent miners by San Lucas, a wholly owned company of Santacruz Silver. The lot sizes are often 1 or 2 t increments. San Lucas weighs and samples each lot to determine the metal content purchased from the independent miners. The individual lots are combined on a toll feed stockpile to be fed to the mill. The toll feed is reconciled in the same method as with the company feed to determine reconciled recoveries.

The mill utilizes different reagent dosage strategies for the toll and company feed sources, primarily due to the presence of pyrrhotite in the toll feed (which is generally not found in the company feed).

The processing plant targets a split of 80% to 85% of the feed being company mined and 15 – 20% of the feed to be toll feed.

17.1 Process
 Plant Description

The processing plant is designed to process 1,150 t/d of company feed or 800 t/d of toll feed. The plant produces two concentrates; a lead concentrate and zinc concentrate, both of which are high in silver.

17.1.1 Crushing

The plant feed is brought to the surface via haul truck and dumped into the crushing feed bin. The mineralized material is fed to a 40" x 30" jaw crusher via vibrating grizzly feeder. The jaw crusher discharge is placed on the mill feed stockpile.

17.1.2 Grinding

The coarse ore stockpile is reclaimed by underground vibratory feeder to a 15.5' dia. x 6' EGL SAG mill. The SAG mill has a trommel screen to return oversize material to the SAG mill. The fine particles are pumped to a cyclone pack for size classification. The undersize is split between 2 ball mills: an 11' dia. X 15.5' EGL ball mill and a 7'5" dia. X 16' EGL ball mill. The cyclones used for classification are CAVEX 400 mm cyclones.

SANTACRUZ SILVER MINING LTD. \| BOLIVAR TECHNICAL REPORT PAGE 17-3

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17.1.3 Flotation

The flotation circuit at the Bolivar mill utilizes a sequential flotation strategy. After the grinding circuit, the feed is directed to a lead flotation rougher circuit, which recovers lead and silver to be further cleaned. The tailings from the lead rougher circuit are conditioned with zinc activation reagents and then floated to make a zinc rougher concentrate.

17.1.3.1 Lead
 Flotation Circuit

The grinding circuit product is directed to the lead rougher flotation conditioning tanks where Aerophine 3418A, Aero 3477, and lime are added. The feed continues to the rougher flotation circuit which consists of four 10 m<sup>3</sup> flotation tank cells. Sodium Isopropyl Xanthate (Z-11) is added halfway down the lead rougher flotation bank (after the first 2 rougher flotation cells) to help with flotation of lead and silver.

A zinc cyanide solution is added to the rougher concentrate and the slurry is pumped to a 1.5 m diameter x 8 m high flotation cleaner column. The lead concentrate is upgraded to a concentrate grade that is above 20% lead.

The lead cleaner column tailings reports to the final tailings pump box to be pumped to the tailings pond. The lead rougher tailings reports to the zinc flotation circuit conditioning tanks.

17.1.3.2 Zinc
 Flotation Circuit

The lead rougher tailings report to a pair of conditioning tanks where lime and copper sulphate are added in encourage flotation of sphalerite. Once again, Z-11 is added as a collector. The zinc rougher circuit consists of six 20 m<sup>3</sup> Outotec flotation tank cells. The zinc rougher circuit tailings is scavenged in a bank of six 200 ft<sup>3</sup> (a total of 34 m<sup>3</sup>) Denver style flotation cells.

The concentrate from the final two zinc rougher flotation cells and the scavenger flotation cells is directed to a cleaner scavenger flotation circuit, which consists of six 100 ft<sup>3</sup> (a total of 17 m<sup>3</sup>) Denver style flotation cells.

The concentrate from the first four zinc rougher cells and the concentrate from the cleaner scavenger flotation cells is fed to the zinc 1<sup>st</sup> cleaner which consists of a bank of six 100 ft<sup>3</sup> (a total of 17 m<sup>3</sup>) Denver style flotation cells. The tailings from the zinc 1<sup>st</sup> cleaner flotation cells is returned to the zinc circuit feed.

The concentrate from the zinc 1<sup>st</sup> cleaner flotation cells is pumped to 2 m diameter x 8 m high zinc 2<sup>nd</sup> cleaner column. The concentrate from this column is pumped to the zinc concentrate thickener. The tailings from the zinc 2<sup>nd</sup> cleaner column is pumped to the feed of the 1<sup>st</sup> cleaner.

17.1.4 Concentrate
 Dewatering

The concentrate dewatering circuit consists of two circuits, the lead concentrate dewatering circuit and the zinc concentrate dewatering circuit.

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The concentrates produced at the Bolivar Mine are sold to Glencore via overseas shipping through Antafagasta, Chile. The zinc concentrate is shipped as a bulk product. The lead concentrate, due to local laws, is bagged prior to shipping. The products are transported by truck to the train loading facility that is approximately 10 km from the mine.

17.1.4.1 Lead
 Concentrate Dewatering

The lead dewatering circuit consists of a 40 ft diameter lead concentrate thickener. The thickener overflow returns to the process water tank. The thickener underflow is pumped to a lead concentrate stock tank. The lead concentrate is then filtered in a 1 m x 1 m x 24 plate pressure filter.

Filtered lead concentrate is bagged for transport to the smelter, as is required by Bolivian law.

17.1.4.2 Zinc
 Concentrate Dewatering

The zinc dewatering circuit consists of a 60 ft diameter zinc concentrate thickener. The thickener overflow returns to the process water tank. The thickener underflow is pumped to a zinc concentrate stock tank. The zinc concentrate is then filtered in either a 1.5 m x 1.5 m x 44 plate pressure filter or a 6 ft diameter x 6 disc filter.

17.1.5 Tailings

There are two tailings storage facilities at the Bolivar Mine. The original tailings storage has been decommissioned. The operational tailings dam is currently undergoing a lift to extend the capacity to 2024. Both tailings dams are inspected regularly and maintained to the standards set out by the Canadian Dam Association guidelines. Both dams are under the supervision of engineers from AMEC (now Wood Engineering) and recently an external audit was conducted by Knight Piésold Consulting.

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18 Project Infrastructure and Services

The Bolivar operation is essentially part of a townsite, housing the workers and their families. It has two camps, numerous residences, a hospital, and a school. Workers live in the town or in nearby Antequera. As such, there is no need for personnel transport.

The infrastructure is depicted in the following three site plans showing:

● The Industrial Complex (Figure 18-1);

● The Industrial Complex and Townsite (Figure 18-2); and

● The General Area (Figure 18-3).

The industrial site is located on the northeastern edge of the townsite. All the infrastructure of the industrial area is close to the mine entrances of equipment and personnel and ore extraction to minimize transportation of ore from the mine to the concentrator plant and worker travel. It is fenced from the rest of the community and is guarded by security to control access. It contains the processing plant, mine offices, multiple maintenance buildings, the assay lab, mine services, multiple warehouses, and administration building. The industrial complex is located close to both mine portals to minimize the haulage distance to the crusher and processing plant.

The Santa Rita hospital is located in the south-east corner of the town, which provides services to the operation and community. This is augmented by a first aid station inside the industrial complex near the mine portal.

A dining hall is maintained for technical and administrative staff, which provides three catered meals per day year-round. Most workers eat at their own homes in town.

The site is connected to grid power supplied by the ENDE company to both the industrial complex and community.

Drinking water is provided by a dammed reservoir, which is monitored and controlled by environmental staff. The water is treated and distributed to the offices and homes of the town site over a three-hour period each day. Water storage tanks are employed by all users for 24-hour access to potable water. The current reservoir is the second such structure which replaced an older dammed reservoir that is now decommissioned.

A sewage network is provided and shared by offices and homes in the community.

The current dike and the former dike are located 3.5 km from the industrial area and the solid waste dump 3.2 km away, which are managed by the Department of the Environment, where monitoring and control for their proper functioning is carried out on a daily basis.

A mine rescue office is maintained in the townsite to respond to emergency situations. Firefighting and other safety equipment is located throughout the industrial complex and townsite.

SANTACRUZ SILVER MINING LTD. \| BOLIVAR TECHNICAL REPORT PAGE 18-1

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**Figure 18-1: Industrial Complex**

![](pg18-1_001.jpg)

Source: Santacruz (2023)

**Figure 18-2: Industrial Complex and Townsite**

Source: Santacruz (2023)

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**Figure 18-3: General Area**

Source: Santacruz (2023)

Bolivar Operations uses power for mining and processing operations. Power is supplied by the National Grid. Approximately 38 million kWh of power was consumed in 2022, representing an average draw of approximately 4.35 MW. This equates to 141 kWh/t mined or 117 kWh/t processed (including toll milling).

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19 Market Studies and Contracts

19.1 Contracts

19.1.1 Illapa
 JV

Bolivar Mine operates under the management of Sinchi Wayra S.A. (formerly COMSUR S.A.), under a joint venture agreement with the Bolivian government (COMIBOL) named Illapa S.A. Sinchi Wayra S.A. and (COMIBOL) entered this Joint Venture Agreement (the Illapa JV) on December 4, 2014, by virtue of Public Deed N° 1356/2014. The duration of the Illapa JV is 15 years, with the possibility of extending the term for the same duration. Under the Illapa JV, ownership is 55% COMIBOL and 45% Illapa. In the event of any disagreement, the Illapa JV has an arbitration clause with seat in La Paz, Bolivia, under UNCITRAL Rules.

On October 11, 2021, Santacruz entered into the Definitive Agreement with Glencore whereby Santacruz agreed to acquire a portfolio of Bolivian silver assets from Glencore, including the following: (a) a 45% interest in the Bolivar Mine and the Porco Mine, held through an unincorporated joint venture between Glencore's wholly-owned subsidiary Contrato de Asociación Sociedad Minera Illapa S.A. (Illapa) and COMIBOL, a Bolivian state-owned entity; (b) a 100% interest in the Sinchi Wayra S.A. (Sinchi Wayra) business, which includes the producing Caballo Blanco mining complex; (c) the Soracaya exploration project; and (d) the San Lucas ore sourcing and trading business (the Assets).

On March 21, 2022, Santacruz completed the purchase of the Assets, including Glencore's interest in the Bolivar Mine.

On May 10, 2023, Santacruz and Glencore entered into a framework agreement to amend certain terms of the transaction documents pertaining to the acquisition of the Assets. On March 28, 2024, Santacruz and Glencore entered into the binding Term Sheet which amends the terms of certain deferred consideration and ancillary documents pertaining to the acquisition of the Assets.

19.1.2 Glencore
 Offtake Agreement

Off-take Agreements with Glencore International are in place for the Bolivar Mine production: Contract No. 180-03-10309-P and Contract No. 062-03-10276-P, including all its addendums and amendments. These Off-Take Agreements are in effect through the life of the mine.

19.2 Market
 Studies

No market studies have been completed for the Project at this time. All commodities produced by the mine are regularly sold on vast international markets and the operation has an arrangement with a smelter to ensure continued product sales.

SANTACRUZ SILVER MINING LTD. \| BOLIVAR TECHNICAL REPORT PAGE 19-1

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19.3 Smelting

The mine produces two saleable concentrates: lead, and zinc. Both are sent to Antafagasta, Chile for shipment overseas. Both are sold to Glencore. These include typical payment terms for all payable metals (Pb, Zn, Ag) and deductions for deleterious elements, which potentially include Sb, Bi, and As in the lead concentrate; and SiO<sub>2</sub>, Sn, Cd, Sb, and Fe in the zinc concentrate.

The approximate percentage net revenue by concentrate is ranked as follows:

● Zn Concentrate: 59%

● Pb Concentrate: 41%

The approximate percentage revenue by metal is ranked as follows:

● Ag: 58%

● Zn: 39%

● Pb: 3%

19.4 Metal
 Prices

Historical silver, lead, and zinc prices are shown in Figure 19-1 through Figure 19-3.

**Figure 19-1: Historical Silver Price**

![](pg19-1_001.jpg)

Source: London Metals Exchange (2023)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 19-2

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**Figure 19-2: Historical Lead Price**

Source: London Metals Exchange (2023)

**Figure 19-3: Historical Zinc Price**

Source: London Metal Exchange (2023

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The zinc, silver and lead prices used in this Technical Report were selected based on the average of three years past and forward projections by CIBC and Consensus Economics, as shown in Table 19-1. These parameters are in line with other recently released comparable Technical Reports. These prices were used as the basis for the resource estimate, reserve estimate, and economic model.

**Table 19-1: Metal Price and Exchange Rate**

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| &nbsp;&nbsp;**Metal** | &nbsp;&nbsp;**Three Year Average** | &nbsp;&nbsp;**CIBC (Long Term)** | &nbsp;&nbsp;**Consensus Economics Forecast (Log Term)** | &nbsp;&nbsp;**Assumed Value** |
| &nbsp;&nbsp;Silver | &nbsp;&nbsp;23.39 | &nbsp;&nbsp;22.96 | &nbsp;&nbsp;20.48 | &nbsp;&nbsp;21.00 |
| &nbsp;&nbsp;Zinc | &nbsp;&nbsp;1.20 | &nbsp;&nbsp;1.27 | &nbsp;&nbsp;1.14 | &nbsp;&nbsp;1.15 |
| &nbsp;&nbsp;Lead | &nbsp;&nbsp;0.97 | &nbsp;&nbsp;0.94 | &nbsp;&nbsp;0.88 | &nbsp;&nbsp;1.00 |

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It must be noted that metal prices are highly variable and are driven by complex market forces and are difficult to predict.

Current (May 3, 2024) spot prices are as follows:

● Ag: $26.50/oz

● Zn: $1.32/lb

● Pb: $1.00/lb

The QPs do not consider the difference between metal current prices and those assumed in this study to be material with regard to the estimation of the mineral resources, reserves, or financial model.

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20 Environmental Studies, Permitting and Social or Community Impacts

20.1 Environmental
 Considerations

Responsible environmental management is a critical part of Santacruz's license to operate and our responsible, compliant operation of Bolivian assets has continued for the last 30 years. Control of potential environmental impacts that can affect Santacruz's performance and the interests of internal and external stakeholders is paramount. Santacruz' environmental management approach is divided into three major areas; Water Management, Tailings Management, and Climate Change. However, other environmental issues are addressed as needed outside of these major management areas such as Waste Management, Land Use, Environmental Closure, and Biodiversity.

Environmental Compliance with national laws and regulations is the basis of Santacruz's environmental management system and is governed by a framework of oversight by the relevant Environmental Authority. However, the company's environmental management system allows it to identify and assess all effects of its operations in order to establish controls and improvement targets guided by best environmental practices and its responsibility to the communities in which it operates. Its environmental commitments are reported to the authorities annually in an Environmental Monitoring Report, which summarizes environmental management of its operations under applicable laws and regulations.

Santacruz is part of the Environmental Working Table within the Bolivia Network of the United Nations Global Compact, where it supports initiatives for raising awareness and environmental care, while also sharing experience from the field.

Based on comparison to the Baseline Environmental Audit Studies (ALBAs), mining activities in Santacruz's operations have not had a significant impact on the area's biodiversity. However, Santacruz actively manage risks related to land use by analyzing impacts on water resources and agriculture, adhering to national regulatory requirements, and applying relevant best practices from the ICMM for environmental closure. In the context of continuous improvement, Santacruz carried out partial remediation and rehabilitation tasks in industrial areas in accordance with the Progressive Closure Plan, in compliance with the Environmental Regulation for Mining Activities (RAAM) of Law No. 1333. None of Santacruz's mining operations are in direct proximity to a sensitive biodiversity area, and no species listed on the IUCN Red List or national conservation lists are identified as threatened by Santacruz's activities. However, Reserva Mine in Caballo Blanco is located near a Municipal protected area.

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20.1.1 Climate
 Change

The impacts and costs of addressing climate change is driven by global commitments, such as the Paris Agreement in 2015, which was signed by 193 countries, including Bolivia. The Agreement proposes, through international action, the reduction of global emissions to prevent the increase of 2° C in the planet's temperature. In this regard, the Bolivian government, through Law No. 835 of 2016, committed to preserving the integrity of Mother Earth, and private industry is expected to join global initiatives on climate change. Climate change has been identified as a material topic due to its potential negative impacts in the medium and long term, particularly in terms of water use and the energy limitations that the mining sector must face. This has been evaluated in Santacruz's corporate risk matrix, and Santacruz is taking actions to address this risk. Santacruz recognize the importance of the required actions in response to Climate Change and strive to ensure mining operations with the least possible environmental impact. focus its efforts mainly on efficient water management and energy efficiency. The cost of energy is one of the largest components of Santacruz's operating expenditures. Ninety percent of the electricity consumed in Santacruz's operations is purchased from the national power grid which relies mostly on fossil fuels (73%).One of Santacruz's direct actions is the management of two power plants that supply electricity to Colquechaquita Mine (Caballo Blanco):

● Hydropower Plant - Renewable energy from Yocalla, which generates 870 CVA s a generation facility that converts the potential energy from falling water into electricity, with a generation capacity of 870 CV; and

● Aroifilla Thermoelectric Plant, which operates on natural gas and has a generation capacity of 200 KW.

Santacruz's operations consumed a total of 91,500 M Watt-hours from the national grid and Santacruz's own power plants, representing a 3% increase compared with the previous year's consumption against a 7% growth in production. 90% of the electricity consumed is purchased from the National Grid, while the remaining electricity is generated by Santacruz's Aroifilla thermoelectric power plant (5%) and Yocalla Renewable hydroelectric power plant (4%).

Electric energy and natural gas are measured via dedicated meters installed for this purpose. Gasoline and diesel fuel consumption is tracked through the records of outgoing supplies managed by warehouses, which are solely for the company's equipment and vehicles. Energy intensity can then be calculated to allow monitoring of overall energy efficiency. In 2022, Santacruz's energy intensity per tonne of concentrate was 2,544 MJ/t, a 10% reduction compared with the previous year, and 30.5% decrease since 2018. This reduction is attributed to more efficient production processes and increases in production that allow energy to be used more effectively.

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**Figure 20-1: Santacruz Bolivia Operations Energy Consumption**

![](pg20-1_001.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

Atmospheric Emissions are associated with the transportation of materials and personnel to and between the mines, resulting from dust and particulate matter generated by truck transport on unpaved roads. To prevent dust and particulate material dispersion in the air, Santacruz has implemented controls, such as frequent watering of gravel roads. In 2022, Santacruz continued to perform ambient air quality monitoring at specific points designated in Santacruz's environmental permits. These monitoring activities assess the levels of PM-10 and metallic contents in the air, and the results are well below the permissible limits. Santacruz also reports the emissions of SOx and NOx resulting from the combustion of natural gas in Santacruz's Aroifilla thermoelectric plant in Potosí. These emissions are also below the permissible limits established by law. The calculation of these emissions is based on measurements conducted by an independent certified environmental laboratory.

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20.2 Waste
 and Water Management

Waste management is an important part of Santacruz's Comprehensive Environmental Management, which includes a waste management plan to classify, handle, and store waste separately for proper disposal or treatment. Waste management complies with Environmental Law No. 1333, its Regulations on Solid Waste Management, and its supplementary regulations, focusing primarily on the sectoral requirements of the Environmental Regulation for Mining Activities for waste rock and tailings.

Waste management extends beyond Santacruz's production operations and includes administrative activities and healthcare facilities managed by Santacruz. Santacruz has begun initiatives for recycling and reuse of domestic waste at several of Santacruz's operations, including plastic recycling campaigns, paper reuse, and compost generation from food waste. Industrial wastes such as oils, greases, scrap, and tires, are sold to recognized recyclers. It ensures that these recyclers are regulated and certified by the environmental authorities to ensure compliant reuse and recycling.

Santacruz classifies waste based on its source of generation. Waste Management then addresses separation by kind of waste, collection, temporary storage and final disposal.

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**Figure 20-2: Waste Classification by Process Source**

![](pg20-1_002.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

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**Table 20-1: Total Waste Quantification and Treatment/Disposal**

![](pg20-1_003.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

Water management has been identified as the most critical environmental area. Water is a shared resource of high social, environmental, and economic value, which is also a critical component of Santacruz's mining and metallurgical activities. Mining operations are located in the Bolivian Highlands, in areas with low precipitation, high evapotranspiration, and threats of drought.

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According to data presented in the "Ecological Threat Register", which ranks countries and watersheds worldwide based on their exposure to water-related risks, Bolivia has a low country risk (10- 20%) of water vulnerability and is not considered a water-stressed country. However, in accordance with the "Aqueduct Water Risk Atlas" by the World Resources Institute, the highland areas where Santacruz operates are considered as Medium Risk (Bolívar) and High Risk (Caballo Blanco and Porco). According to these recognized international public tools, Santacruz deems the care and preservation of water critical aspects of Santacruz's management system and strives to ensure access to water for communities and operational needs.

During the mining production process, water comes into contact with heavy metals, so it must be treated before being use or discharge. Monitoring water quality and quantity and the use of water balance monitoring, Santacruz is able to comply with the criteria required by the Regulations on Water Pollution (RMCH) of Environmental Law No. 1333. Santacruz is also subject to periodic inspections by applicable environmental authorities and community representatives. Water balances for each operation are verified using flow meters and reservoir level bathymetry to ensure accurate and validated information for assessing, proposing, and identifying opportunities for improving water management.

Water Treatment - The underground mining activities produce an excess of water which must be pumped from the mine. This water may contain suspended solids and chemical contaminants (such as pyrite and heavy metals), which would require treatment for reuse of discharge. Water treatment includes the following steps:

**Figure 20-3: Water Treatment Process**

![](pg20-3_004.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

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**Table 20-2: Santacruz Bolivia Water Volumes**

![](pg20-3_005.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

Operational consumption is used for drilling, mine services, irrigation, and process water sourced by reclaim from the Tailings Dam. The actual water consumption is the difference between "extracted" water and "discharged water", resulting in 1.9 million m<sup>3</sup> consumed in 2022 for all mines.

Santacruz treats excess water to meet applicable required standards and discharge it to surface water at authorized points specified in Santacruz's environmental permits. The discharge parameters as set out in Water Pollution Regulations Law No. 1333, include pH, iron, zinc, lead, and suspended solids, which are typical in the water treated from the mine.

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**Figure 20-4: Santacruz Bolivia Water Balance**

![](pg20-3_006.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

20.2.1 Solid
 Waste - Bolivar

Bolivar Mine has one active Tailing storage Facility (Queaqueani) and one inactive (Antiguo). Both are managed in compliance with the guidelines of the Canadian Dam Association (CDA) and the "Global Industry Standard on Tailings Management" issued by the UNEP (United Nations Environment Programme), ICMM (International Council on Mining and Metals), and PRI (Principles for Responsible Investment) in August 2020. This program includes third party Verification Assessments (Dam Safety Assurance Assessment). In response to findings from these assessments, and to mitigate risks of failure, risk management tools have been developed to improve management systems for the active TSF. For the inactive facility, monitoring and maintenance have been improved and follow good practice.

The "Queaqueani" tailings storage facility started operations in April 2007. This facility was designed by Canadian engineering firm AMEC and is located 3.5 km to the north of the operation. Hydraulic tails of 25-29% solids are beached along the upstream side of the dam crest and water is reclaimed from the southwest sector of the reservoir and pumped via HDPE pipelines back to the water treatment plant.

The Queaqueani Dam is a 33.5 m high, downstream-constructed dam. The current crest level is El. 3994.8 m (Stage IV-A raise was completed in December 2019). The next dam raise (Stage IV-B to El. 3997.8 m) is in progress and to be completed in 2023. There exists capacity to contain all tailings to be generated by processing the stated reserves.

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**Figure 20-5: Volume profile of the Queaqueari Dam by Stage Height**

![](pg20-3_007.jpg)

**Figure 20-6: Aerial Photography of the Queaqueani TSF**

![](pg20-3_008.jpg)

Source: Glencore (2021)

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20.2.2 Water
 Management - Bolivar

Bolivar produces an excess of water from the underground mine. A total of approximately 170 l/s is pumped from the mine and is treated in separate plants for two different uses: one for potable water at the mine and surrounding communities, the other for industrial use in the mine and makeup water for the process plant (much of the water used for processing is reclaimed from the tailing facility). The balance of water is discharged to the Pampitas River.

**Figure 20-7: Bolivar Mine Water Balance**

Source: Sustainability Report, Sinchi Wayra (2022)

20.3 Permitting

Santacruz Silver operates the Bolivar Mine as a joint venture with the Bolivian Government (COMIBOL) The structure of the contract with COMIBOL is a "Partnership Contract governing Bolivar and Porco Mines (CA-MBP), and its purpose is to develop and implement a mining operation for the treatment of the existing mineralogical reserves and resources in the Bolívar and Porco Mines, by the exploitation, preparation, beneficiation and sale of mineral concentrates. Contrato de Asociación Sociedad Minera Illapa S.A. is authorized as operator and responsible of executing on behalf of COMIBOL, all the operations and activities of the association contract. The shares of CA-MBP are 55% for COMIBOL and 45% for Contrato de Asociación Sociedad Minera Illapa S.A." This renewable agreement expires in 2028.

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Mining Contracts that grant the right to the subsoil mining resource, is granted by the Mining Administrative Jurisdictional Authority (AJAM) over the ATE mining areas, and a contract is granted for each area or contiguous group of areas. Recent changes to the laws and government personnel have pushed Santacruz contract updates into a transitionary period waiting for final signatures and approvals. Santacruz holds Special Transitory Authorizations for each contract area which are officially designated "Mining Administrative Contracts for Adaptation". As of the effective date, approximately half of the applications have been transitioned, and the remainder fall under Article 187 of Law No. 535 on Mining and Metallurgy, which states:

*<u>ARTICLE 187</u>. (CONTINUITY OF MINING ACTIVITIES). Holders of Special Transitory Authorizations to be adapted or in the process of adaptation will continue their mining activities, with all the effects of their acquired or pre-constituted rights until the conclusion of the adaptation procedure.* 

 

Santacruz has fully complied with this administrative procedure and is waiting for the Mining Administrative Authority to issue the relevant documents. It should be noted that this public entity has a considerable delay in the issuance of these documents.

Environmental Licenses have been formally granted to allow operation for all mining activity, by the Ministry of Environment and Water. The following table shows the licenses held by Santacruz:

**Table 20-3: Environmental Licenses Held by Santacruz**

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| &nbsp;&nbsp;Operation | &nbsp;&nbsp;**License** |
| &nbsp;&nbsp;Bolívar | &nbsp;&nbsp;040603-02-da-0324/14 |
| &nbsp;&nbsp;Porco | &nbsp;&nbsp;051203-02-da-0031/14 |
| &nbsp;&nbsp;Caballo Blanco – Colquechaquita Mine | &nbsp;&nbsp;050101-02-da-131/11 |
| &nbsp;&nbsp;Caballo Blanco – Mina Reserva and Tres Amigos | &nbsp;&nbsp;050101-02-da-561/11 |
| &nbsp;&nbsp;Caballo Blanco – Don Diego Concentrator Plant | &nbsp;&nbsp;050302-02-da-003/2024 |
| &nbsp;&nbsp;Caballo Blanco – San Lorenzo Mine | &nbsp;&nbsp;050101-02-da-005/06 |
| &nbsp;&nbsp;Comco | &nbsp;&nbsp;050101-02-da-006/09 |
| &nbsp;&nbsp;Soracaya | &nbsp;&nbsp;050801-02-CD-C3-002/2017 |
| &nbsp;&nbsp;Aroifilla Thermoelectric Plant | &nbsp;&nbsp;050101-04-da-007/2023 |
| &nbsp;&nbsp;Yocalla Hydroelectric Plant | &nbsp;&nbsp;050103-05-da-006/2023 |

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20.4 Community
 Relations

Santacruz mining projects are mostly well-established operations with a long history and a developed infrastructure, which provide direct benefits to employees and supporting businesses. However, the mines are located in rural to semirural areas in which the surrounding mostly agricultural communities can benefit from each operation only indirectly or through company outreach. Santacruz supports these communities by addressing services that are lacking, and helping to create value with economic development programs, and other forms of support.

Mining represents a significant portion of the Bolivian economy and is especially critical to local economies through employment, tax revenue and local procurement or supply. The high dependency on mining of areas influenced by Santacruz operations obliges responsible action and support for the health of these communities, as well as its employees and their families. Santacruz is interested in fostering an environment of social peace, respect, and mutual progress. The Social Management team for each operations consists of a dedicated Superintendent along with supporting personnel who ensure the fulfillment of its commitment to the communities.

To be most effective local Social Management groups have established communication channels to learn about the perceptions, concerns, requests, or complaints from within stakeholder communities. The communities can communicate their inquiries, complaints, concerns, and issues through letters addressed to the company, formal meetings, or the Santacruz "Ethics Hotline" channel. The local Social Management team routinely conducts community and area visits inspections and, in the case of a complaint, conducts the necessary verifications. The main channel of communication is through in-person meetings involving community leaders where minutes are recorded. As such, all parties can move cooperatively forward with acceptable initiatives and mitigations.

Prior to action, Santacruz must take into consideration social challenges faced by the country and the communities, as well as each initiative's possible impacts on the life of people. Its actions are aimed at identifying vulnerable groups and obtaining their participation. It identifies impacts and assess risks associated with each initiative, as well as changes in Santacruz's operations that may have repercussions on the community.

**Table 20-4: Communities and Population Proximal to Santacruz Operations**

![](pg20-3_010.jpg)

Source: Santacruz (2023)

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Common concerns addressed during the meetings with community leaders focus on job opportunities within the company and monitoring medium- to long-term commitments. The change of shareholders that occurred with the Santacruz purchase in March 2022 generated uncertainty in several communities, and a process of communication and meetings was necessary to assure and demonstrate that the company will maintain normal operations and fulfill its commitments to the fullest extent. The major concerns of the proximal communities put forth in 2022 are outlined in Table 20-5.

**Table 20-5: Concerns Put Forth by Proximal Communities in 2022**

![](pg20-3_011.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

Santacruz's investments focus on donation of assets, goods, products, and in-kind services, minimizing cash disbursements to directly benefit the communities. As part of Santacruz's support, Santacruz has invested over $300,000 in infrastructure, including housing, pedestrian bridges, electrification, water diversion systems for irrigation, and basic sanitation, among other infrastructure projects. As a company, Santacruz encourages the communities to manage and prioritize long-term projects with a greater impact. At all times, and particularly during implementation, the communities are heavily involved in each project.

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A rigorous company due diligence policy governs the contributions and investments made to community projects, so that they are made in accordance with the company's values and ethics codes. The process begins with the requests proposed by the communities through their leaders, followed by meetings held between the Community leaders and the company during which, formal agreements are executed, which approve mutually accepted projects to be implemented.

**Figure 20-8: Total Investment in Communities**

![](pg20-3_012.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

A key player connected with all Bolivian Mines and surrounding areas are the mining cooperatives which are organized independent mining entities, some quite capable and organized with their own equipment. Recognized by the government as a valid economic activity for local development, they conduct their activities in abandoned mines or expropriating active mines, which can pose risks to business. The relationship is not completely one-sided as the Cooperatives sell mineralized material to process their product, thus mechanisms are in place to face possible subjugations, protect mine employees and the communities.

More importantly, proactive solutions and agreements to avoid conflict and coexist peacefully with the different cooperatives are in place. As much as possible, with cooperatives as toll processors at Santacruz Process Plants, compliance with occupational health and safety, human rights, and good work practice is sought.

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To incorporate a new supplier, an assessment is required, including:

● Submission of legal documents proving that they are up to date with regard to any rules in force;

● The mineral supplier's background is verified; for this purpose, we have access to the Thomson Reuters and Info center systems, which report their background globally. This system informs us whether the supplier has any negative local or international background; in that case, Santacruz would not deal with them;

● Commercial visit to the supplier's operations, to directly verify the standards such as the 132 company's Code of Ethics; In particular, whether or not child labor is employed in the operations, and any other Human Rights violations, and observations of the use of safety equipment and personal protective equipment; and

● Machinery is assessed to ensure good condition safe operation.

Once all these steps are completed and upon the in-situ verification of legal documents, the relationship with the cooperative is authorized. A pilot support program was launched in 2019 to supply advisors and technical assistance on environment, human rights, occupational health & safety, and administrative management. The goal being to help mineral suppliers improve their internal systems and processes to ensure sustainability and compliance with Santacruz sustainability standards.

Bolívar has a formal agreement (known as Actas de Reunión) with the neighboring communities. These agreements are recognized and managed by their Ayllus and include different plans and projects to help the communities with their economic development, infrastructure, access to water, education, and health and assist the communities by sponsoring their traditional festivities and sports.

Santacruz's community investment programs are aimed mostly at communities directly influenced by the operations. Community investments are designed to maximize positive impact, recognizing that each community has unique requirements and living conditions; therefore, Santacruz prioritizes based on number of beneficiaries, vulnerability, long-term sustainability, and urgency of need.

Antequera is the largest community in the area of influence and immediately adjacent to the Bolivar operation. The communities neighboring Bolívar Mine are the homes of Santacruz's workers, contractors and family members. Most of them reside in the population of Antequera, from where they establish their relationship with the operation, which is itself adjacent to town.

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**Table 20-6: Bolivar Local Populations**

![](pg20-3_013.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

**Figure 20-9: Bolivar Surrounding Communities**

![](pg20-3_014.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

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20.4.1 Education

Santacruz has engaged in the following activities to support education in the region:

● Santacruz continued to manage the Antequera School, dedicated to the education of 456 children and teenagers. This includes the wages of 28 teachers, 1 director, and supporting janitorial and cleaning staff. Santacruz also provide support with materials and equipment, breakfast, payment of utilities, infrastructure maintenance, and sponsorship of socio-cultural and sports activities; and

● Santacruz has established a scholarship program for outstanding students that graduate from its school, supporting their education at universities in the capital cities, covering expenses for meals, accommodation, and participation in activities. One of the purposes is to provide professionals to the community and to the company, as well. In 2022, Santacruz granted 29 scholarships.

20.4.2 Community
 and Economic Development

Santacruz has encouraged community and economic development in the region following ways:

● Together with families, Santacruz conducted fire extinguisher training courses for 100 people;

● According to our commitment, Santacruz sponsors basic services by renovating 5 houses and providing additional assistance to nearly a hundred families in two communities; and

● Santacruz sponsored productive development by repairing the roofs of five houses and additional assistance to 55 additional families in the community.

20.4.3 Environmental
 Initiatives

Santacruz has undertaken several environmental initiatives, including the following:

● Santacruz continued with the reforestation program in the vicinity of the Queaqueani tailings dam; and

● Santacruz supported the Water Diversion Project with Antequera, focused on a farming recovery that benefits 200 people.

20.4.4 Local
 Needs

Santacruz has responded to local needs in several ways including the following:

● Santacruz sponsored various sports and cultural activities in the community, including: a safety management contest, sponsorship of trips for the Sebastián Pagador graduates, cooking courses for housewives, support for the elderly in purchasing groceries, and the anniversary celebration of Antequera.

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20.4.5 Health
 and Sports

Santacruz has supported health and sports for the local communities in several ways including:

● Santacruz supported the soccer school by covering the coach's salary and providing transportation for the team to Oruro during championship weekends. The school has 140 students; and

● The fumigation and pest control works were continued in Antequera and the workers campsite.

**Figure 20-10: Bolivar Community Investment**

![](pg20-3_015.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

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20.5 Mine
 Closure

Closure Planning for Operations has social, economic, workforce, and environmental impacts, so conceptual closure plans are shared with communities. Santacruz's goal is to recover areas by establishing a healthy ecosystem capable of sustaining productive land use, ensuring the best possible environmental conditions, including physical, chemical, biological, and ecosystem aspects, at closure. Environmental superintendents are responsible for monitoring the environmental closure planning, and periodic reviews of these plans are conducted, including surveys of areas and activities to adjust financial provisions for closure.

Land Use and Rehabilitation - environmental challenges related to biodiversity protection, soil restoration, and land use, are addressed through dialogue with stakeholders, including local communities and relevant authorities. Our comprehensive environmental management focuses on minimizing disturbed areas. In 2022, Santacruz managed a total of 6,600 hectares of land covered by Temporary Special Authorizations (ATEs) granted by the Mining Administrative Jurisdiction Authority (AJAM), under leasing contracts with the Government through COMIBOL. However, Santacruz's processing activities, services, and related infrastructure (industrial area) currently occupy only 400.5 hectares of land, including areas of previous mining operations and other areas with environmental closure located within the properties Santacruz manage.

In 2022, Santacruz continued with the reforestation plan in the Queaqueani Dam area, in accordance with an agreement with the community of the same name, and significant progress was made in the progressive closure of the old tailings facilities at the Don Diego Concentrator Plant.

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21 Capital and Operating Costs

21.1 Capital
 Costs

The Bolivar Mine has been in continuous operation for many years. There will be, as the reserve is expanded and developed, the need for step changes in mine access, production or haulage methods, which may require large capital outlays. These will be financially justified as needed. However, the capital needs for continued operation to exploit the remaining reserves is limited to Primary mine development, equipment rebuilds and replacements, and Tailing Storage Facility expansions. Average annual capital has been and is projected to be in the 11 to 12 million USD range. It is anticipated that expansion work to the TSF will be required in 2023 (2.5 million).

The historic total capital requirement for all the Bolivian operations is shown in Table 21-1. Bolivar's projected capital requirements for 2023 to 2027 is shown in Table 21-2.

**Table 21-1: Actual Combined Capital Requirement for All Bolivian Operations, 2017 to 2022 ($M)**

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|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**2017** | &nbsp;&nbsp;**2018** | &nbsp;&nbsp;**2019** | &nbsp;&nbsp;**2020** | &nbsp;&nbsp;**2021** | &nbsp;&nbsp;**2022** |
| &nbsp;&nbsp;**Bolivar** | &nbsp;&nbsp;**8.8** | &nbsp;&nbsp;**13.7** | &nbsp;&nbsp;**13.7** | &nbsp;&nbsp;**6.3** | &nbsp;&nbsp;**11.3** | &nbsp;&nbsp;**10.2** |
| &nbsp;&nbsp;Porco | &nbsp;&nbsp;3.0 | &nbsp;&nbsp;8.8 | &nbsp;&nbsp;8.4 | &nbsp;&nbsp;3.6 | &nbsp;&nbsp;5.3 | &nbsp;&nbsp;3.1 |
| &nbsp;&nbsp;Reserva | &nbsp;&nbsp;1.3 | &nbsp;&nbsp;2.4 | &nbsp;&nbsp;2.1 | &nbsp;&nbsp;2.0 | &nbsp;&nbsp;4.3 | &nbsp;&nbsp;3.5 |
| &nbsp;&nbsp;Tres Amigos | &nbsp;&nbsp;2.1 | &nbsp;&nbsp;2.6 | &nbsp;&nbsp;1.5 | &nbsp;&nbsp;1.8 | &nbsp;&nbsp;2.2 | &nbsp;&nbsp;3.0 |
| &nbsp;&nbsp;Don Diego | &nbsp;&nbsp;0.9 | &nbsp;&nbsp;6.9 | &nbsp;&nbsp;1.4 | &nbsp;&nbsp;0.9 | &nbsp;&nbsp;1.1 | &nbsp;&nbsp;1.2 |
| &nbsp;&nbsp;Colquechaquita | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;2.0 | &nbsp;&nbsp;1.4 | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;3.0 | &nbsp;&nbsp;2.5 |
| &nbsp;&nbsp;La Paz | &nbsp;&nbsp;3.3 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;0.3 | &nbsp;&nbsp;0.4 | &nbsp;&nbsp;0.2 | &nbsp;&nbsp;0.7 |
| &nbsp;&nbsp;Soracaya | &nbsp;&nbsp;0.5 | &nbsp;&nbsp;2.1 | &nbsp;&nbsp;0.2 | &nbsp;&nbsp;0.1 |  |  |
| &nbsp;&nbsp;San Lucas | &nbsp;&nbsp;0.8 | &nbsp;&nbsp;0.0 | &nbsp;&nbsp;0.0 | &nbsp;&nbsp;0.1 | &nbsp;&nbsp;0.4 |  |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**21.8** | &nbsp;&nbsp;**39.0** | &nbsp;&nbsp;**28.5** | &nbsp;&nbsp;**16.3** | &nbsp;&nbsp;**27.8** | &nbsp;&nbsp;**24.3** |

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SANTACRUZ SILVER MINING LTD. \| BOLIVAR TECHNICAL REPORT PAGE 21-1

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**Table 21-2: Projected Capital Requirement for Bolivar Operations, 2023 to 2027 ($M)**

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|  | &nbsp;&nbsp;**2023** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2026** | &nbsp;&nbsp;**2027** |
| &nbsp;&nbsp;Engineering/Admin | &nbsp;&nbsp;0.0 | &nbsp;&nbsp;0.0 |  | &nbsp;&nbsp;0.1 |  |
| &nbsp;&nbsp;Safety/Environmental | &nbsp;&nbsp;2.8 | &nbsp;&nbsp;0.2 | &nbsp;&nbsp;2.6 | &nbsp;&nbsp;2.6 | &nbsp;&nbsp;0.4 |
| &nbsp;&nbsp;Mobile Equipment/Maintenance | &nbsp;&nbsp;2.7 | &nbsp;&nbsp;4.4 | &nbsp;&nbsp;4.1 | &nbsp;&nbsp;2.7 | &nbsp;&nbsp;1.2 |
| &nbsp;&nbsp;Plant | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;0.7 | &nbsp;&nbsp;0.7 | &nbsp;&nbsp;0.2 |
| &nbsp;&nbsp;Exploration |  |  | &nbsp;&nbsp;0.3 | &nbsp;&nbsp;0.3 | &nbsp;&nbsp;0.4 |
| &nbsp;&nbsp;Primary development | &nbsp;&nbsp;5.1 | &nbsp;&nbsp;6.3 | &nbsp;&nbsp;6.2 | &nbsp;&nbsp;6.3 | &nbsp;&nbsp;4.5 |
| &nbsp;&nbsp;Corporate |  |  |  |  |  |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**11.3** | &nbsp;&nbsp;**11.5** | &nbsp;&nbsp;**14.0** | &nbsp;&nbsp;**12.6** | &nbsp;&nbsp;**6.7** |

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Recurring exploration and primary development costs have been included in the COG calculations to better anticipate and account for total costs and make the COG more meaningful for reserve estimation and mine planning.

21.2 Operating
 Cost Estimate

Costs used for Cut-off Grade analysis were taken from actual costs from 2022.

The actual cost of corporate G&A was allocated to each of the businesses.

**Table 21-3: Unit Operating Costs ($/t)**

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| &nbsp;&nbsp;**Mine** | &nbsp;&nbsp;**Unit Cost, $/t** |
| &nbsp;&nbsp;Mine Operations | &nbsp;&nbsp;36.29 |
| &nbsp;&nbsp;Mine Maintenance | &nbsp;&nbsp;28.84 |
| &nbsp;&nbsp;Indirect | &nbsp;&nbsp;22.32 |
| &nbsp;&nbsp;Plant | &nbsp;&nbsp;18.28 |
| &nbsp;&nbsp;Warehouse | &nbsp;&nbsp;0.64 |
| &nbsp;&nbsp;G&A | &nbsp;&nbsp;13.84 |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**120.22** |

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Mine operations include direct costs of mining, including labor, energy, materials, and services.

Mine Equipment Maintenance Costs includes maintenance to all equipment related to direct development, exploitation and haulage, as well as service equipment such as pumping, ventilation, winches, etc.

Indirect costs would include Site Management, Technical services, Site Administration, Environmental and Social, Safety and Security.

Plant costs include direct Beneficiation costs as well as plant maintenance, and indirect costs.

Warehouse costs refer to Concentrate handling and storage.

General and Administration includes allocated Bolivian corporate costs.

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22 Economic Analysis

22.1 Result

The Reserve Estimate was generated using actual costs from 2022, including mine operating, concentrate overland transport, port costs, and shipping as well as smelting fees, payment terms, and penalty charges in effect during that period. A simplified Cash flow model was built to model the costs and conditions used to generate the Reserve estimates stated in this report.

The Bolivar Mine is part of a multi-operation business. However, the Economic model treats it as a separate financial entity with Bolivian corporate costs allocated for the analysis. As well, the operation is subject to a partnership with the Bolivian Government (COMIBOL), but the financial modelling examines the value of the operation on a 100% basis to support the Reserve statement.

The Bolivar Mine has been in continuous operation for over 200 years and the deposit is a network of relatively narrow veins. These two aspects drive the normal exploitation process of the mine, where inferred resources are converted and exploited in the same budget year. Resources are generally proven-up by drifting and sampling instead of drilling. Therefor normal budgeting and mine planning includes resources outside of the Reserve estimate.

For the current exercise in this report, only Proven and Probable reserves are included in financial evaluation, so the production schedule represents the depletion of these reserves at average grade and current production rates. The context of the production schedule exploits the Proven and Probable reserves as part of a continuous operation and as such does not include the closure activities.

**Table 22-1: Production Forecast – Mining and Processing**

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|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Unit** | &nbsp;&nbsp;**2023** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2026** |
| &nbsp;&nbsp;**Mine Production** |  |  |  |  |  |
| &nbsp;&nbsp;Tonnes Mined | &nbsp;&nbsp;(DMT) | &nbsp;&nbsp;317300 | &nbsp;&nbsp;317300 | &nbsp;&nbsp;317300 | &nbsp;&nbsp;285082 |
| &nbsp;&nbsp;Tonnes Processed | &nbsp;&nbsp;(DMT) | &nbsp;&nbsp;317300 | &nbsp;&nbsp;317300 | &nbsp;&nbsp;317300 | &nbsp;&nbsp;285082 |
| &nbsp;&nbsp;**Head Grades** |  |  |  |  |  |
| &nbsp;&nbsp;Zinc | &nbsp;&nbsp;(%) | &nbsp;&nbsp;9.96 | &nbsp;&nbsp;9.96 | &nbsp;&nbsp;9.96 | &nbsp;&nbsp;9.96 |
| &nbsp;&nbsp;Lead | &nbsp;&nbsp;(%) | &nbsp;&nbsp;1.17 | &nbsp;&nbsp;1.17 | &nbsp;&nbsp;1.17 | &nbsp;&nbsp;1.17 |
| &nbsp;&nbsp;Silver | &nbsp;&nbsp;g/t | &nbsp;&nbsp;273 | &nbsp;&nbsp;273 | &nbsp;&nbsp;273 | &nbsp;&nbsp;273 |

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Metallurgical recoveries and concentrate qualities used in the model are sourced from historic actuals for 2022 based on the head grades actually mined. Projected recoveries are thus estimated to be reasonable, to conservative These parameters will necessarily be conservative considering the higher grades in the production schedule. Metallurgical recoveries and concentrate qualities are actuals based on the head grades actually mined. These parameters will necessarily be conservative considering the higher grades in the production schedule.

SANTACRUZ SILVER MINING LTD. \| NI 43-101 Technical Report PAGE 22-1

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**Table 22-2: Production Forecast - Concentrate**

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|  | &nbsp;&nbsp;**Unit** | &nbsp;&nbsp;**2023** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2026** |
| &nbsp;&nbsp;**Concentrates** |  |  |  |  |  |
| &nbsp;&nbsp;Zinc (with 0.5% losses) | &nbsp;&nbsp;(DMT) | &nbsp;&nbsp;53991 | &nbsp;&nbsp;53991 | &nbsp;&nbsp;53991 | &nbsp;&nbsp;48508 |
| &nbsp;&nbsp;Zn Conc. Grade | &nbsp;&nbsp;(%) | &nbsp;&nbsp;53 | &nbsp;&nbsp;53 | &nbsp;&nbsp;53 | &nbsp;&nbsp;53 |
| &nbsp;&nbsp;Ag (in Zinc) | &nbsp;&nbsp;g/t | &nbsp;&nbsp;621 | &nbsp;&nbsp;621 | &nbsp;&nbsp;621 | &nbsp;&nbsp;621 |
| &nbsp;&nbsp;Zn Recovery | &nbsp;&nbsp;(%) | &nbsp;&nbsp;91 | &nbsp;&nbsp;91 | &nbsp;&nbsp;91 | &nbsp;&nbsp;91 |
| &nbsp;&nbsp;Ag (in Zinc) | &nbsp;&nbsp;(%) | &nbsp;&nbsp;39 | &nbsp;&nbsp;39 | &nbsp;&nbsp;39 | &nbsp;&nbsp;39 |
| &nbsp;&nbsp;Lead (with 0.5% losses) | &nbsp;&nbsp;(DMT) | &nbsp;&nbsp;9559 | &nbsp;&nbsp;9559 | &nbsp;&nbsp;9559 | &nbsp;&nbsp;8588 |
| &nbsp;&nbsp;Pb Conc. Grade | &nbsp;&nbsp;(%) | &nbsp;&nbsp;27 | &nbsp;&nbsp;27 | &nbsp;&nbsp;27 | &nbsp;&nbsp;27 |
| &nbsp;&nbsp;Ag (in lead) | &nbsp;&nbsp;g/t | &nbsp;&nbsp;4599 | &nbsp;&nbsp;4599 | &nbsp;&nbsp;4599 | &nbsp;&nbsp;4599 |
| &nbsp;&nbsp;Pb Recovery | &nbsp;&nbsp;(%) | &nbsp;&nbsp;70 | &nbsp;&nbsp;70 | &nbsp;&nbsp;70 | &nbsp;&nbsp;70 |
| &nbsp;&nbsp;Ag (in Lead) | &nbsp;&nbsp;(%) | &nbsp;&nbsp;51 | &nbsp;&nbsp;51 | &nbsp;&nbsp;51 | &nbsp;&nbsp;51 |
| &nbsp;&nbsp;**Metal Recovery** |  |  |  |  |  |
| &nbsp;&nbsp;Zinc | &nbsp;&nbsp;(FMT) | &nbsp;&nbsp; 29000 | &nbsp;&nbsp; 29000 | &nbsp;&nbsp; 29000 | &nbsp;&nbsp; 26000 |
| &nbsp;&nbsp;Silver (in Zinc) | &nbsp;&nbsp;(FOT) | &nbsp;&nbsp; 1078000 | &nbsp;&nbsp; 1078000 | &nbsp;&nbsp; 1078000 | &nbsp;&nbsp; 968000 |
| &nbsp;&nbsp;Lead | &nbsp;&nbsp;(FMT) | &nbsp;&nbsp; 3000 | &nbsp;&nbsp; 3000 | &nbsp;&nbsp; 3000 | &nbsp;&nbsp; 2000 |
| &nbsp;&nbsp;Silver (in Lead) | &nbsp;&nbsp;(FOT) | &nbsp;&nbsp; 1413000 | &nbsp;&nbsp; 1413000 | &nbsp;&nbsp; 1413000 | &nbsp;&nbsp; 1270000 |
| &nbsp;&nbsp;Silver (Total) | &nbsp;&nbsp;(FOT) | &nbsp;&nbsp; 2491000 | &nbsp;&nbsp; 2491000 | &nbsp;&nbsp; 2491000 | &nbsp;&nbsp; 2238000 |

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Notes:

FMT = Fine Metric Tonnes

DMT = Dry Metric Tonnes

FOT = Fine Ounces Troy

That same logic follows to the net revenue generation (Table 22-3) which includes smelter charges and penalty fees.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 22-2

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**Table 22-3: Revenue and Cost Projection ($M)**

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|  | &nbsp;&nbsp;**Unit** | &nbsp;&nbsp;**2023** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2026** |
| &nbsp;&nbsp;**Payable Metal Revenue** |  |  |  |  |  |
| &nbsp;&nbsp;Zinc |  | &nbsp;&nbsp;73 | &nbsp;&nbsp;73 | &nbsp;&nbsp;73 | &nbsp;&nbsp;66 |
| &nbsp;&nbsp;Metallurgical Deduction |  | &nbsp;&nbsp;11 | &nbsp;&nbsp;11 | &nbsp;&nbsp;11 | &nbsp;&nbsp;10 |
| &nbsp;&nbsp;Gross Payable Zinc |  | &nbsp;&nbsp;62 | &nbsp;&nbsp;62 | &nbsp;&nbsp;62 | &nbsp;&nbsp;56 |
| &nbsp;&nbsp;Lead |  | &nbsp;&nbsp;6 | &nbsp;&nbsp;6 | &nbsp;&nbsp;6 | &nbsp;&nbsp;5 |
| &nbsp;&nbsp;Metallurgical Deduction |  | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 |
| &nbsp;&nbsp;Gross Payable Lead |  | &nbsp;&nbsp;5 | &nbsp;&nbsp;5 | &nbsp;&nbsp;5 | &nbsp;&nbsp;5 |
| &nbsp;&nbsp;Silver |  | &nbsp;&nbsp;52 | &nbsp;&nbsp;52 | &nbsp;&nbsp;52 | &nbsp;&nbsp;47 |
| &nbsp;&nbsp;Metallurgical Deduction in Zinc |  | &nbsp;&nbsp;9.2 | &nbsp;&nbsp;9.2 | &nbsp;&nbsp;9.2 | &nbsp;&nbsp;8.2 |
| &nbsp;&nbsp;Metallurgical Deduction in Lead |  | &nbsp;&nbsp;1.5 | &nbsp;&nbsp;1.5 | &nbsp;&nbsp;1.5 | &nbsp;&nbsp;1.3 |
| &nbsp;&nbsp;Gross Payable Silver |  | &nbsp;&nbsp;41.7 | &nbsp;&nbsp;42 | &nbsp;&nbsp;42 | &nbsp;&nbsp;37 |
| &nbsp;&nbsp;Gross Revenue (Total) |  | &nbsp;&nbsp;109 | &nbsp;&nbsp;109 | &nbsp;&nbsp;109 | &nbsp;&nbsp;98 |
| &nbsp;&nbsp;**Smelter Charges and Penalties** |  |  |  |  |  |
| &nbsp;&nbsp;Treatment charges Zn | &nbsp;&nbsp;(USD/t) | &nbsp;&nbsp;277 | &nbsp;&nbsp;277 | &nbsp;&nbsp;277 | &nbsp;&nbsp;277 |
| &nbsp;&nbsp;Treatment charges Zn |  | &nbsp;&nbsp;15 | &nbsp;&nbsp;15 | &nbsp;&nbsp;15 | &nbsp;&nbsp;14 |
| &nbsp;&nbsp;Treatment charges Pb | &nbsp;&nbsp;(USD/t) | &nbsp;&nbsp;133 | &nbsp;&nbsp;133 | &nbsp;&nbsp;133 | &nbsp;&nbsp;133 |
| &nbsp;&nbsp;Treatment charges Pb |  | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 |
| &nbsp;&nbsp;Penalties in Zn | &nbsp;&nbsp;(USD/t) | &nbsp;&nbsp;7 | &nbsp;&nbsp;7 | &nbsp;&nbsp;7 | &nbsp;&nbsp;7 |
| &nbsp;&nbsp;Penalties in Zn |  | &nbsp;&nbsp;0 | &nbsp;&nbsp;0 | &nbsp;&nbsp;0 | &nbsp;&nbsp;0 |
| &nbsp;&nbsp;Penalties in Lead | &nbsp;&nbsp;(USD/t) | &nbsp;&nbsp;13 | &nbsp;&nbsp;13 | &nbsp;&nbsp;13 | &nbsp;&nbsp;13 |
| &nbsp;&nbsp;Penalties in Lead |  | &nbsp;&nbsp;0 | &nbsp;&nbsp;0 | &nbsp;&nbsp;0 | &nbsp;&nbsp;0 |
| &nbsp;&nbsp;Refining Charges in Pb | &nbsp;&nbsp;(USD/FOZ) | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 |
| &nbsp;&nbsp;Refining Charges in Pb |  | &nbsp;&nbsp;2 | &nbsp;&nbsp;2 | &nbsp;&nbsp;2 | &nbsp;&nbsp;2 |
| &nbsp;&nbsp;Smelter Fees and Penalties |  | &nbsp;&nbsp;18 | &nbsp;&nbsp;18 | &nbsp;&nbsp;18 | &nbsp;&nbsp;17 |
| &nbsp;&nbsp;Net Revenue |  | &nbsp;&nbsp;90 | &nbsp;&nbsp;90 | &nbsp;&nbsp;90 | &nbsp;&nbsp;81 |
| &nbsp;&nbsp;**Operating Costs** |  |  |  |  |  |
| &nbsp;&nbsp;Production Costs |  | &nbsp;&nbsp;34 | &nbsp;&nbsp;34 | &nbsp;&nbsp;34 | &nbsp;&nbsp;30 |
| &nbsp;&nbsp;**Cost of Sales** |  |  |  |  |  |
| &nbsp;&nbsp;Rail Freight Zn |  | &nbsp;&nbsp;6 | &nbsp;&nbsp;6 | &nbsp;&nbsp;6 | &nbsp;&nbsp;5 |
| &nbsp;&nbsp;Rail Freight Pb |  | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 |
| &nbsp;&nbsp;Port Expenses Zn |  | &nbsp;&nbsp;2 | &nbsp;&nbsp;2 | &nbsp;&nbsp;2 | &nbsp;&nbsp;2 |
| &nbsp;&nbsp;Port Expenses Pb |  | &nbsp;&nbsp;0 | &nbsp;&nbsp;0 | &nbsp;&nbsp;0 | &nbsp;&nbsp;0 |
| &nbsp;&nbsp;Rollback Fee Zn |  | &nbsp;&nbsp;5 | &nbsp;&nbsp;5 | &nbsp;&nbsp;5 | &nbsp;&nbsp;4 |
| &nbsp;&nbsp;Rollback Fee Pb |  | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 |
| &nbsp;&nbsp;Concentrate Freight and Port Costs |  | &nbsp;&nbsp;14 | &nbsp;&nbsp;14 | &nbsp;&nbsp;14 | &nbsp;&nbsp;13 |
| &nbsp;&nbsp;Mine Royalty |  | &nbsp;&nbsp;6 | &nbsp;&nbsp;6 | &nbsp;&nbsp;6 | &nbsp;&nbsp;5 |

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BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 22-3

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|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Unit** | &nbsp;&nbsp;**2023** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2026** |
| &nbsp;&nbsp;Communities and Unions |  | &nbsp;&nbsp;2 | &nbsp;&nbsp;2 | &nbsp;&nbsp;2 | &nbsp;&nbsp;2 |
| &nbsp;&nbsp;Selling Costs |  | &nbsp;&nbsp;23 | &nbsp;&nbsp;23 | &nbsp;&nbsp;23 | &nbsp;&nbsp;21 |
| &nbsp;&nbsp;**Total Cost of Sales** |  | &nbsp;&nbsp;**57** | &nbsp;&nbsp;**57** | &nbsp;&nbsp;**57** | &nbsp;&nbsp;**51** |

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Depreciation is a product of previous operation and annual capital expenditure incurred for the exploitation of the reserve tonnage. Capital is limited to that required to support mining, processing, and tailing storage for the reserve. Corporate G&A is that part of the in-country costs allocated to the Bolivar Mine.

**Table 22-4: Cashflow Projection ($M)**

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|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**2023** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2026** |
| &nbsp;&nbsp;**Income Statement** |  |  |  |  |
| &nbsp;&nbsp;Net Revenue | &nbsp;&nbsp;90 | &nbsp;&nbsp;90 | &nbsp;&nbsp;90 | &nbsp;&nbsp;81 |
| &nbsp;&nbsp;Production Costs | &nbsp;&nbsp;(34) | &nbsp;&nbsp;(34) | &nbsp;&nbsp;(34) | &nbsp;&nbsp;(30) |
| &nbsp;&nbsp;Selling Costs | &nbsp;&nbsp;(23) | &nbsp;&nbsp;(23) | &nbsp;&nbsp;(23) | &nbsp;&nbsp;(21) |
| &nbsp;&nbsp;Depreciation | &nbsp;&nbsp;(11) | &nbsp;&nbsp;(10) | &nbsp;&nbsp;(9) | &nbsp;&nbsp;(12) |
| &nbsp;&nbsp;**Gross Profit** | &nbsp;&nbsp;22 | &nbsp;&nbsp;23 | &nbsp;&nbsp;24 | &nbsp;&nbsp;18 |
| &nbsp;&nbsp;Corporate G&A | &nbsp;&nbsp;(4) | &nbsp;&nbsp;(4) | &nbsp;&nbsp;(4) | &nbsp;&nbsp;(4) |
| &nbsp;&nbsp;**Operating profit** | &nbsp;&nbsp;17 | &nbsp;&nbsp;19 | &nbsp;&nbsp;20 | &nbsp;&nbsp;14 |
| &nbsp;&nbsp;**EBIT** | &nbsp;&nbsp;17 | &nbsp;&nbsp;19 | &nbsp;&nbsp;20 | &nbsp;&nbsp;14 |
| &nbsp;&nbsp;Income Tax Expense (CIT) | &nbsp;&nbsp;(6.5) | &nbsp;&nbsp;(7.0) | &nbsp;&nbsp;(7.4) | &nbsp;&nbsp;(5.1) |
| &nbsp;&nbsp;**Net Gain/(Loss) for the Year** | &nbsp;&nbsp;11 | &nbsp;&nbsp;12 | &nbsp;&nbsp;12 | &nbsp;&nbsp;8 |
| &nbsp;&nbsp;**Cashflow Statement** |  |  |  |  |
| &nbsp;&nbsp;**Cash from Operations Activities** |  |  |  |  |
| &nbsp;&nbsp;Net Income | &nbsp;&nbsp;11 | &nbsp;&nbsp;12 | &nbsp;&nbsp;12 | &nbsp;&nbsp;8 |
| &nbsp;&nbsp;Depreciation | &nbsp;&nbsp;11 | &nbsp;&nbsp;10 | &nbsp;&nbsp;9 | &nbsp;&nbsp;12 |
| &nbsp;&nbsp;**Subtotal** | &nbsp;&nbsp;22 | &nbsp;&nbsp;22 | &nbsp;&nbsp;21 | &nbsp;&nbsp;21 |
| &nbsp;&nbsp;**Cash from Investing Activities** |  |  |  |  |
| &nbsp;&nbsp;Sustaining Capital Expenditure | &nbsp;&nbsp;$(11) | &nbsp;&nbsp;$(12) | &nbsp;&nbsp;$(13) | &nbsp;&nbsp;$- |
| &nbsp;&nbsp;**Subtotal** | &nbsp;&nbsp;$(11) | &nbsp;&nbsp;$(12) | &nbsp;&nbsp;$(13) | &nbsp;&nbsp;$- |
| &nbsp;&nbsp;**Cash Balance** | &nbsp;&nbsp;(11) | &nbsp;&nbsp;(12) | &nbsp;&nbsp;(13) | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Beginning | &nbsp;&nbsp;$- | &nbsp;&nbsp;$11 | &nbsp;&nbsp;$21 | &nbsp;&nbsp;$30 |
| &nbsp;&nbsp;Change in Cash | &nbsp;&nbsp;$11 | &nbsp;&nbsp;$10 | &nbsp;&nbsp;$9 | &nbsp;&nbsp;$21 |
| &nbsp;&nbsp;**Ending** | &nbsp;&nbsp;**$11** | &nbsp;&nbsp;**$21** | &nbsp;&nbsp;**$30** | &nbsp;&nbsp;**$51** |

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BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 22-4

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Income Tax is 37.5% of the EBIT. As seen, the operations generate a positive cash flow after tax upon exploitation of the stated reserve at the metal prices used to generate the reserve.

22.2 Sensitivities

A univariate sensitivity analysis was performed to examine which factors most affect the Project economics when acting independently of all other cost and revenue factors. Each variable evaluated was tested using the same percentage range of variation, from -20% to +20%, although some variables may experience significantly larger or smaller percentage fluctuations over the LOM. For instance, the metal prices were evaluated at a ±20% range to the base case, while the capex and all other variables remained constant. This may not be truly representative of market scenarios, as metal prices may not fluctuate in a similar trend. The variables examined in this analysis are those commonly considered in similar studies – their selection for examination does not reflect any particular uncertainty.

Notwithstanding the above noted limitations to the sensitivity analysis, which are common to studies of this sort, the analysis revealed that the Project is most sensitive to metal pricing. The Project showed the least sensitivity to capital costs. Figure 22-1 shows the results of the sensitivity analysis.

**Figure 22-1: Univariate Sensitivities**

![](pg22-1_001.jpg)

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 22-5

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23 Adjacent Properties

There are no relevant adjacent properties to the Bolivar Project.

SANTACRUZ SILVER MINING LTD. \| BOLIVAR TECHNICAL REPORT PAGE 23-1

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24 Other Relevant Data and Information

Mining has been ongoing since the effective date of this report through 2023 and into 2024. Total mining in 2023 was 293,083 t at a grade of 228 g/t Ag, 0.68% Pb, and 6.60% Zn, resulting in the production of 1.97 Moz of Ag, 1,461 t of Pb, and 17,523 t of Zn. This production cannot simply be subtracted from the January 1, 2023, resource or reserve estimates contained in this report, however. As described previously, reserves and resources are adjusted as the mining progresses based on development along vein and associated sampling. These adjustments can be significant, and the geologic block model is updated to account for this new information. The operations team at Bolivar uses the considerable modelling tools and methods at their disposal to incorporate these operational updates to guide their mine planning.

The January 1, 2023 Reserves statement is based on a fixed model. However, block model updates are generated for annual budgeting and forecasting. These updates incorporate projected operating costs, updated block grades and NSR factors as applicable.

A significant amount of the 2023 production came from blocks that were not included in the stated January 1, 2023 reserves. The most significant differences were from veins: Pomabamba, Nane, Bolivar, Nueve and Rosario where development and sampling increased the value of previously uneconomic blocks.

However, actual dilution in 2023 for Sub level Stoping was 29.4% vs. 12.5% estimated in the January 1, 2023.

This ongoing estimation process provides a good mine planning guide as well as an accurate empirical tool for reconciliation. A direct reconciliation with the January 1, 2023 Reserve and Resource blocks stated in this report, shows that:

● 49% of the mined mineralized production for 2023 originated from the Proven and Probable reserves;

● 40% of mined mineralized production for 2023 originated from Measured, Indicated, and inferred Resources outside of the reserve base, which were converted into reserves as mining progressed; and

● 11% of mined mineralized production for 2023 originated from stope design dilution, development dilution, and unplanned stope dilution.

This analysis provides a good indication of the reserve drawdown and continuous level of replenishment resulting from normal operations in identified and active mineralized veins.

Details of the 2023 production and economic results are included in Santacruz's MD&A filing.

SANTACRUZ SILVER MINING LTD. \| BOLIVAR TECHNICAL REPORT PAGE 24-1

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25 Interpretations and Conclusions

25.1 Observations

The Bolivar, Porco and Caballo Blanco deposits are located in the central part of the Eastern Cordillera, a thick sequence of Paleozoic marine siliciclastic and argillaceous rocks deposited on the western margin of Gondwana and deformed in a fold-thrust belt. There were two major tectonic cycles in the Paleozoic: The Lower Paleozoic Famatinian cycle (the Tacsarian and Cordilleran cycles of Bolivia), and the Upper Paleozoic Gondwana cycle (Subandean cycle of Bolivia).

The most important ore deposits of the Eastern Cordillera are polymetallic hydrothermal deposits mined principally for Sn, W, Ag and Zn, with sub-product Pb, Cu, Bi, Au and Sb. They are related to stocks, domes and volcanic rocks of Middle and Late Miocene age (22 to 4 Ma). Mineralization occurs in veins, fracture swarms, disseminations and breccias. The deposits of the Eastern Cordillera are epithermal vein and disseminated systems of Au, Ag, Pb, Sb, as that have been telescoped on to higher temperature mesothermal Sn-W veins and, in some cases, porphyry Sn deposits. The telescoping is a characteristic of these deposits and is the result of collapse of the hydrothermal systems, with lower temperature fluids overprinting higher temperature mineralization. The systems show a fluid evolution from a high temperature, low sulphidation state to intermediate sulphidation epithermal and high sulphidation epithermal.

The Bolivar system is a network epigenetic hydrothermal base metal type veins and faults filled mineralization hosted within a variety of lithologies from volcanic tuffs to sedimentary packages. The main mineral assemblages are composed of sphalerite, marmatite, galena, silver-rich galena and silver sulphosalts. The resources are usually based on multiple structures containing several veins. The typical dimensions of these structures are ~500 m in length and ~450 m in depth with mineralization continuing to be open at depth with vein widths of between 0.2 m - 4.0 m.

The Bolivar Mine is an "advanced property" and has been in continuous production since 1993. Glencore and subsequently Santacruz Silver has performed exploration and resource expansion drilling of surface and underground drillholes at the Bolivar Mine since 2000 totalling 49,173.5 m. The 145 drillholes and 23,059 underground channels in the database were supplied in electronic format by Santacruz. This included collars, downhole surveys, lithology data and assay data (i.e., Ag g/t, Pb%, Zn%, Fe%, Sn%).

Verification of the Bolivar drillhole and underground sample assay database was primarily focused on silver, lead and zinc in addition to iron, arsenic, sulphur and tin. Sample databases were supplied in Excel<sup>TM</sup> format and in LeapFrog<sup>TM</sup>. Checks against source data and assay certificates showed agreement. Statistical analyses used to investigate and identify errors were performed and resulted in minor issues. These have been corrected and it is recommended that a continued program of random "spot checking" the database against assay certificates be employed.

During the 2023 site visit, an extensive independent sampling verification plan was implemented with a total of 80 samples collected across from the Bolivar, Porco and Caballo Blanco operations. The Don Diego laboratory is an NB/ISO/IEC 17025:2018 accredited laboratory which performs all assay analyses for the mining and processing operations for Sinchi Wayra including Bolivar. The Don Diego laboratory in owned and operated by the Issuer, Santacruz.

SANTACRUZ SILVER MINING LTD. \| BOLIVAR TECHNICAL REPORT PAGE 25-1

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Results of the verification samples indicates that the regression predictions perfectly fit the data meaning that the check sampling program successfully verified and validated the data and although, these results are not a complete audit of the laboratory, they do verify that the assay results are suitable for resource estimation purposes.

The geological and lithological solid domain models were supplied by Santacruz in both Datamine<sup>TM</sup> and LeapFrog<sup>TM</sup> which are both industry-leading software systems. The QP imported the multiple vein domains into a similar system called MineSight<sup>TM</sup> to verify solids volumes and ensure matching of the solids domains against the drillhole and sample database. Results confirmed location and extent of volumes are appropriate to resource estimation purposes.

Resource block models were supplied in Datamine<sup>TM</sup> format which is an industry recognized software system used for resource estimation. These models were then imported to MineSight<sup>TM</sup> for verification of the resource estimation. In addition, independent estimations were run using the verified sample data and vein domains employing inverse distance estimations to ensure reasonableness and verify the resources independently. Results illustrated good agreement between the original and verification models. Verification of the SG regression analysis was also performed by comparing measured versus calculated density values.

The mineral resources were estimated in conformity with CIM's "Estimation of Mineral Resources and Mineral Reserves Best Practices Guidelines" (December 2019) and are reported in accordance with NI 43-101 guidelines.

Using a cut-off grade of 10.6% ZnEq, the Bolivar Mine resources are presented in Table 25-1.

**Table 25-1: Base-Case Total Mineral Resources at 10.6% ZnEq Cut-off**

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|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;<br> **Total Bolivar 2023 Mineral Resources** | &nbsp;&nbsp;<br> **Total Bolivar 2023 Mineral Resources** | &nbsp;&nbsp;<br> **Total Bolivar 2023 Mineral Resources** | &nbsp;&nbsp;<br> **Total Bolivar 2023 Mineral Resources** | &nbsp;&nbsp;<br> **Total Bolivar 2023 Mineral Resources** | &nbsp;&nbsp;<br> **Total Bolivar 2023 Mineral Resources** |
| &nbsp;&nbsp;**Mine** | &nbsp;&nbsp;**Category** | &nbsp;&nbsp;**Tonnes ('000)** | &nbsp;&nbsp;**Zn (%)** | &nbsp;&nbsp;**Pb (%)** | &nbsp;&nbsp;**Ag (g/t)** |
| &nbsp;&nbsp;**Bolivar** | &nbsp;&nbsp;Measured | &nbsp;&nbsp;855 | &nbsp;&nbsp;12.78 | &nbsp;&nbsp;1.37 | &nbsp;&nbsp;327 |
|  | &nbsp;&nbsp;Indicated | &nbsp;&nbsp;677 | &nbsp;&nbsp;12.24 | &nbsp;&nbsp;1.25 | &nbsp;&nbsp;295 |
|  | &nbsp;&nbsp;**Total M+I** | &nbsp;&nbsp;**1532** | &nbsp;&nbsp;**12.54** | &nbsp;&nbsp;**1.32** | &nbsp;&nbsp;**313** |
|  | &nbsp;&nbsp;**Inferred** | &nbsp;&nbsp;**4202** | &nbsp;&nbsp;**10.35** | &nbsp;&nbsp;**1.00** | &nbsp;&nbsp;**403** |

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Notes:

1) The current Resource Estimate was prepared by Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd.;

2) All mineral resources have been estimated in accordance with CIM definitions, as required under NI 43-101;

3) The Mineral Resource Estimate was prepared using a 10.6% zinc equivalent cut-off grade. Cut-off grades were derived from $25.20/oz silver, $1.38/lb zinc and $1.20/lb lead, and process recoveries of 91% for zinc, 70% for lead, and 89.7% for silver. This cut-off grade was based on current smelter agreements and total OPEX costs of $120.22/t based on 2022 actual costs plus capital costs of $48.68/t, with process recoveries of 91.0% for zinc, 70.0% for lead, and 89.7% for silver. All prices are stated in $USD;

4) An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration; and

5) Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not account for a resource's mineability, selectivity, mining loss, or dilution. All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 25-2

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The QPs found that Bolivar is a well-managed operation that should be capable of sustaining profitable operations for many years to come in the same fashion as it has operated for the past several years.

The reserves were found to be estimated correctly using industry-standard techniques and procedures and industry-standard software by diligent and competent professionals.

The mine has an ample provision of skilled workers and reasonably good quality mining equipment. Typical and reasonable ore control systems were in place, but it is possible that the results could be improved with a closer attention to appropriate mining widths, minimizing them wherever possible to minimize dilution.

The mill facility at the Bolivar Mine is well run and the feed and mill operation are well understood by the technical group. The mill equipment appeared to be well maintained during the site visit in 2021.

25.2 Risks

The Bolivar Mine is subject to all of the risks normally associated with an operating mine, and some unique to its situation. These include:

● The current political and socio-economic climate in Bolivia poses risks and uncertainties that could delay or even stop development as reported within the Fraser Institute Annual Report 2022 where Bolivia ranks very low in many non-technical metrics. Bolivia has been ranked consistently low for the past five years and ranks in the lower quartile on all metrics that gauge risk and uncertainty. It is difficult to gauge or qualify the level or extents of the risks however, all companies working in Bolivia must continue to be aware of the potential risks and develop mitigation strategies. A significant risk related to the Santacruz Bolivian mineral assets and in particular the mineral resources and mineral reserves is the significant artisanal activity that continues to exist. This activity is not only a socio-economic risk but also affects access to resources and reserves along with potential sterilization of mineral resources;

● Geological interpretations may be subjective and may result in the location and extent of some of the mineralized structure although as the Bolivar Mine is comprised of well constrained veins, this risk is minimal;

● As vein thicknesses are narrow, resources may be sensitive to dilution although the relative high grades that exist at the Bolivar Mine are successful at mitigating such risks to date;

● Varying resource classification methods and criteria may vary as more data is considered;

● There is no guarantee that further drilling will result in additional resources or increased classification;

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 25-3

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● Lower commodity prices could change size and grade of the potential targets;

● Further work may disprove previous models and therefore result in condemnation of targets and potential negative economic outcomes;

● Ability to replace mined reserves on an annual basis; and

● Maintenance of permits.

As the mines continues to expand to depth, the following aspects of mine operations will be challenged:

● Worker travel time (reduced time at the face);

● Dewatering inflow quantities, infrastructure and costs. The Central Mine already experiences large seasonal influxes of water, that sometimes affect production. This problem will be exacerbated by continued mining to depth;

● Ventilation system needs and costs; and

● Materials handling.

As is shown on Figure 22-1, the greatest risk to the economic results in this study is from changes to metal prices.

The operation of the mining cooperatives poses a risk to functionality of the Bolivar Operation. To date, Santacruz has been careful to culture a peaceful coexistence with the cooperatives and they have not operated in the core areas that Bolivar conducts it mining operations. There is always a risk of this changing, and that their activities will escalate or relocate to more impactful areas.

25.3 Opportunities

Project opportunities include:

● A systematic exploration program could provide an excellent opportunity for successfully uncovering new discoveries;

● An increased understanding and derivation of alternative theories may result in further discovery and expansion for the Project;

● A hydrogeological study could help the operation to better characterize and understand water inflows, aiding design work and planning to reduce the impact of major seasonal inflows;

● Higher commodity prices will change size and grade of the potential targets; and

● Potential for expansion and classification upgrade of resources as mining activities progress.

The primary opportunity to the mine is to improve the grade to the mill by incorporating a mine dilution control program. As is typical with all narrow width mining, dilution is very sensitive to the mined widths of veins, which must be kept at minimum to accommodate equipment widths. Often, however, veins are over-mined to ensure complete recovery of the ore. This practice significantly increases dilution due to overbreak of the hangingwall and footwall.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 25-4

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26 Recommendations

To advance the Bolivar Mine and further evaluate the potential additional veins and increase resources thereby displacing depletion due to ongoing mining activities, the following is recommended:

● Regional exploration for identification of new veins;

● Incorporate structural interpretations to assist regional understanding;

● QA/QC program review and improvement;

● Investigate source of anomalous lead values experienced with the field blanks;

● Incorporation of externally certified blanks and standards into the QA/QC program;

● Insertion of QA/QC samples throughout at a rate of 1 in 20 for blanks, standards and duplicates;

● Analysis of thickness and grade-thickness profiles for resource targeting and predictive dilution study;

● Investigate geo-metallurgical characteristics;

● Hydrogeological study and modelling should be done to better understand water inflows and minimize their impact on production;

● Extensive surface drilling for near surface targets along with underground drilling for resource delineation and extension; and

● Tracking of Cooperativa progress to mitigate safety and resource risk.

As is typical with all narrow width mining, dilution is very sensitive to the mined widths of veins. Often veins are over-mined to ensure complete recovery, but this practice comes with significantly increased dilution due to overbreak of the hangingwall and footwall. The operation should conduct a thorough test stoping experiment to ensure the most economic balance between incomplete recovery and excessive dilution.

Underground operations that use three x 8 hour shifts typically lose much worker productivity due to excessive travel and break time over such a short shift. The current operation has an effective time of 5.5 hours per worker on an 8-hour shift. Consideration should be given to testing a longer shift, say a schedule of 4 x 10 hours per week with three days off. With the same 2.5 hours of travel and break time, the effective time would increase to 7.5 hours per shift, resulting in an increase from 68% to 75% shift effectiveness or actual working time. The workers are apt to find that the longer days are harder, but that the three days off provide more rest on the balance of the week.

The mill facility at Bolivar receives two significantly different types of feed (company mined feed and toll feed) from the same deposit. The toll feed has a lower concentrate grade due to higher amounts of pyrrhotite in the feed. A geometallurgical testwork program should be run to determine if there are any additional domains that have not been recognized and to determine recoveries associated with those domains. This will improve overall recoveries as well as provide more information to the mining group when determining the value of mineralized blocks to be mined.

These recommendations have not been costed, as they represent changes to current practices that can be funded by existing operating budgets.

SANTACRUZ SILVER MINING LTD. \| BOLIVAR TECHNICAL REPORT PAGE 26-1

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27 References

Ahlfeld, F.E. & Schneider-Scherbina, A., 1964*. Los yacimientos minerales y de hidrocarburos de Bolivia*. Departamento Nacional de Geología (Bolivia) Boletín 5 (Especial), 388 p.

Barrios, Enrique, Dentons Guevara & Gutierrez S.C., 18 March 2022 "Local Counsel Legal Opinion on the Porco Mine"

Barrios, Enrique, Dentons Guevara & Gutierrez S.C., 18 March "Local Counsel Legal Opinion on the Caballo Blanco Project",

Barrios, Enrique, Dentons Guevara & Gutierrez S.C., 18 March 2022 "Local Counsel Legal Opinion on Empresa Minera San Lucas S.A."

Barrios, Enrique, Dentons Guevara & Gutierrez S.C., 18 March 2022 "Local Counsel Legal Opinion on Sociedad Minero Metalúrgica Reserva Ltda."

Barrios, Enrique, Dentons Guevara & Gutierrez S.C., 18 March 2022 "Local Counsel Legal Opinion on Sociedad Minera Illapa S.A."

Barrios, Enrique, Dentons Guevara & Gutierrez S.C., 18 March 2022 "Local Counsel Legal Opinion on Sinchi Wayra S.A."

Barrios, Enrique, Dentons Guevara & Gutierrez S.C., 18 March 2022 "Local Counsel Legal Opinion on the Illapa Joint Venture"

Cunningham, C. G., Aparicio, H., Murillo, F., Jimenez, N., Lizeca, J. L., Ericksen, G. E. & Tavera, F., 1993. *The Porco, Bolivia, Ag-Zn-Pb-Sn deposit is along the ring fracture of the newly recognized Porco caldera*. *GSA Abstracts with Programs*, Vol. 25, No. 5, p. 26.

Cunningham, C. G., Aparicio, H., Murillo, F., Jiménez, N., Lizeca, J. L., McKee, E. H., Ericksen, G. E. & Tavera, F., 1994a. *The relationship between the Porco, Bolivia, Ag-Zn-Pb-Sn Deposit and the Porco Caldera*. *U.S. Geological Survey, Open-File Report* 94-238, p. 19.

Cunningham, C. G., Aparicio, H., Murillo, F., Jiménez, N., Lizeca, J. L., McKee, E. H., Ericksen, G. E. & Tavera, F., 1994b. *Relationship between the Porco, Bolivia, Ag-Zn-Pb-Sn Deposit and the Porco Caldera*. *Economic Geology*, Vol. 89, p. 1833-1841.

Cunningham, C.G., Zartman, R.E., McKee, E.H., Rye, R.O., Naeser, C.W., Sanjines, V.O., Ericksen, G.E. and Tavera, V.F., 1996. *The age and thermal history of Cerro Rico de Potosi, Bolivia*. *Mineralium Deposita*, v. 31, p. 374-385.

Francis, P.W., Baker, M.C.W. & Halls, C., 1981. *The Kari caldera, Bolivia, and the Cerro Rico stock*. Journal of Volcanology and Geothermal Research, v. 10, p. 113-124.

Glencore, 2020. *Internal "Geology of Bolivar"* Presentation.

SANTACRUZ SILVER MINING LTD. \| BOLIVAR TECHNICAL REPORT PAGE 27-1

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Glencore, 2020. *Reported reserves and resources are based on Glencore's Resources & Reserves* report as of 31 December 2020:

https://www.glencore.com/dam/jcr:3c05a365-e6ae-4c1a-9439-<br> 960249a42e35/GLEN_2020_Resources_reserves_report.pdf

Glencore *- Summary of Mobile Mining Equipment* – August 2021 – Excel Spreadsheet

Glencore *- Sustainability Report*, 2019, Sinchi Wayra S.A. / Illapa S.A.- Glencore Internal Document

HSEC Assurance Report, December 2020, Zinc, Sinchi Wayra*, Bolivia – Tailing Storage Facilities, Verification 3 Assessment* – Glencore Internal Document

Jiménez, N., Sanjinés, O., Cunningham, Ch., Lizeca, J.L., Aparicio, H., McKee, E., Tavera, F. & Ericksen, G., 1998, La Caldera resurgente de Porco y su relación con la mineralización de Ag-Zn-Pb. *Memorias del XI Congreso Geológico de Bolivia*, Tarija, p.132-146.

Kato, J. J., 2013. *Geochemistry of the Neogene Los Frailes Ignimbrite Complex on the Central Andean Altiplano Plateau*. Unpublished MSc thesis, Cornell University, xiv + 173 p.

Kato, J. J., Kay, S. M., Coira, B. L., Jicha, B. R., Harris, C., Caffe, P. J. & Jimenez, N., 2014. Evolution and Geochemistry of the Neogene Los Frailes Ignimbrite Complex on the. Bolivian Altiplano Plateau. *XIX Congreso Geológico Argentino*, Córdoba, Argentina, June 2014, abstract S24-3-6.

Kay, S. M., Kato, J. J., Coira, B. L. & Jimenez, N., 2018*. Isotopic and Geochemical Signals of the Neogene Los Frailes Volcanic Complex as Recorders of Delamination and Lower Crustal Flow under the Southern Altiplano of the Central Andes*. 11th South American Symposium on Isotope Geology, Cochabamba, Bolivia, 22-25 July 2018, abstract.

Kirkham, G., Crowie, T. and Corso, W. 2021. JDS "*NI43-101 Technical Report, Bolivar Project, Oruro State, Bolivia*" dated December 21, 2021.

Ludington, S., Orris, G.J., Cox, D.P., Long, K.R. & Asher-Bolinder, S., 1992. Mineral deposit models. In USGS-Geobol, *Geology and Mineral Resources of the Altiplano and Cordillera Occidental, Bolivia*. USGS Bulletin 1975, p. 63-89.

Mina Bolivar *- Determinación De Volúmenes Explotados Y Volúmenes Planificados Rajos Sls* (Dilución Externa) Informe Parcial - Junio 2021 – Bolivar Mine Internal Technical Services Study

Redwood, S. D., 1993. *The Metallogeny of the Bolivian Andes*. Mineral Research Unit, Short Course No. 15. UBC, Vancouver, B.C., Canada, 59 p.

Rice, C.M., Steele, G.B., Barfod, D., Boyce, A.J., and Pringle, M.S., 2005. *Duration of magmatic, hydrothermal and supergene activity at Cerro Rico de Potosi, Bolivia*. *Economic Geology*, v. 100, p. 1647-1656.

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BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 27-2

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Schneider, A., 1985. *Eruptive processes, mineralization and isotopic evolution of the Los Frailes Kari Region, Bolivia*. Unpublished Ph.D. thesis, Royal School of Mines, Imperial College, University of London, London, 290p.

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Sugaki, A., Ueno, H., Shimada, N., Kusachi, I., Kitakaze, A., Hayashi, K., Kojima, S. & Sanjines, O., 1983*. Geological study on the polymetallic ore deposits in the Potosi district, Bolivia*. Science Reports of the Tohoku University, Series III, Vol. 15, p. 409-460.

Sugaki, A., Shimada, N., Ueno, H. & Kano, S., 2003. *K-Ar Ages of Tin-Polymetallic Mineralization in the Oruro Mining District, Central Bolivian Tin Belt*. Resource Geology, Vol. 53, p. 273-282.

Zartman, R.E., & Cunningham, C.G., 1995. *U-Th-Pb zircon dating of the 13.8 Ma dacite volcanic dome at Cerro Rico de Potosi, Bolivia*. Earth and Planetary Science Letters, v. 133, p. 227-237.

BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 27-3

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28 Units of Measure, Abbreviations, Acronyms, and Glossary of Spanish Terms

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| | |
|:---|:---|
| &nbsp;&nbsp;<br> **Symbol / Abbreviation** | &nbsp;&nbsp;**Description** |
| ° | &nbsp;&nbsp;degree |
| $| &nbsp;&nbsp;United States Dollars |
| $M | &nbsp;&nbsp;One Million United States Dollars |
| °C | &nbsp;&nbsp;degrees Celsius |
| μm | &nbsp;&nbsp;micrometres |
| 3D | &nbsp;&nbsp;three-dimensions |
| a | &nbsp;&nbsp;annum (year) |
| ACAD | &nbsp;&nbsp;AutoCAD<sup>TM</sup>, a commercially produced design software by Autodesk |
| Ag | &nbsp;&nbsp;silver |
| amsl | &nbsp;&nbsp;above mean sea level |
| Au | &nbsp;&nbsp;gold |
| Bi | &nbsp;&nbsp;bismuth |
| Ca | &nbsp;&nbsp;calcium |
| CAPEX | &nbsp;&nbsp;Capital expense |
| cfm | &nbsp;&nbsp;cubic feet per minute |
| CIM | &nbsp;&nbsp;Canadian Institute of Mining, Metallurgy and Petroleum |
| cm | &nbsp;&nbsp;centimetre |
| cm<sup>2</sup> | &nbsp;&nbsp;square centimetre |
| cm<sup>3</sup> | &nbsp;&nbsp;cubic centimetre |
| CIBC | &nbsp;&nbsp;Canadian Imperial Bank of Commerce |
| CIT | &nbsp;&nbsp;Corporate income tax |
| COMIBOL | &nbsp;&nbsp;Bolivian Government owned mining company; joint venture partner to Santacruz through the Illapa JV |
| CQA | &nbsp;&nbsp;Quality Assurance (for tailings disposal) |
| CQC | &nbsp;&nbsp;Quality control management (for tailings disposal) |
| Cu | &nbsp;&nbsp;copper |
| CV | &nbsp;&nbsp;Coefficient of Variation |
| DAA | &nbsp;&nbsp;Declaration of Environmental Adequacy |
| DMT | &nbsp;&nbsp;Dry metric tonnes |
| E | &nbsp;&nbsp;East |
| EBIT | &nbsp;&nbsp;Earnings before interest and taxes |
| EIA | &nbsp;&nbsp;Environmental Impact Assessment |
| ENDE | &nbsp;&nbsp;National Electricity Company (Bolivia) |

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SANTACRUZ SILVER MINING LTD. \| BOLIVAR TECHNICAL REPORT PAGE 28-1

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| | |
|:---|:---|
| &nbsp;&nbsp;<br> **Symbol / Abbreviation** | &nbsp;&nbsp;**Description** |
| ft<sup>3</sup> | &nbsp;&nbsp;cubic foot |
| g | &nbsp;&nbsp;gram |
| G&A | &nbsp;&nbsp;general and administrative |
| g/t | &nbsp;&nbsp;grams per tonne |
| hp | &nbsp;&nbsp;horsepower |
| HSEC | &nbsp;&nbsp;health, safety, environment and community |
| IDW | &nbsp;&nbsp;Inverse distance weighting |
| JDS | &nbsp;&nbsp;JDS Energy & Mining Inc. |
| JORC | &nbsp;&nbsp;Australasian Joint Ore Reserves Committee |
| JV | &nbsp;&nbsp;Joint venture |
| kg | &nbsp;&nbsp;kilogram |
| km | &nbsp;&nbsp;kilometre |
| km/h | &nbsp;&nbsp;kilometres per hour |
| kPa | &nbsp;&nbsp;kilopascal |
| kt | &nbsp;&nbsp;kilotonne |
| kV | &nbsp;&nbsp;kilovolt |
| kVA | &nbsp;&nbsp;kilovolt-ampere |
| kW | &nbsp;&nbsp;kilowatt |
| L | &nbsp;&nbsp;litre |
| L/min | &nbsp;&nbsp;litres per minute |
| L/s | &nbsp;&nbsp;litres per second |
| LOM | &nbsp;&nbsp;life of mine |
| m | &nbsp;&nbsp;metre |
| M | &nbsp;&nbsp;million |
| Ma | &nbsp;&nbsp;million years |
| masl | &nbsp;&nbsp;metres above sea level |
| mm | &nbsp;&nbsp;millimetre |
| Mm<sup>3</sup> | &nbsp;&nbsp;Millions of cubic metres |
| MPa | &nbsp;&nbsp;megapascal |
| Mt | &nbsp;&nbsp;million metric tonnes |
| MW | &nbsp;&nbsp;megawatt |
| N | &nbsp;&nbsp;north |
| NI 43-101 | &nbsp;&nbsp;National Instrument 43-101 |
| NSR | &nbsp;&nbsp;net smelter return |
| OPEX | &nbsp;&nbsp;Operating cost |
| oz | &nbsp;&nbsp;troy ounce |
| OK | &nbsp;&nbsp;Ordinary kriging |

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SANTACRUZ SILVER MINING LTD. \| NI 43-101 Technical Report PAGE 28-2

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|:---|:---|
| &nbsp;&nbsp;<br> **Symbol / Abbreviation** | &nbsp;&nbsp;**Description** |
| P.Eng. | &nbsp;&nbsp;Professional engineer (a Canadian designation) |
| P.Geo. | &nbsp;&nbsp;Professional Geologist (a Canadian designation) |
| Pb | &nbsp;&nbsp;lead |
| ppm | &nbsp;&nbsp;parts per million |
| PVC | &nbsp;&nbsp;Polymerization of vinyl chloride (a plastic) |
| QA/QC | &nbsp;&nbsp;quality assurance/quality control |
| QP | &nbsp;&nbsp;qualified person |
| RMR | &nbsp;&nbsp;rock mass rating |
| S | &nbsp;&nbsp;South |
| SAG | &nbsp;&nbsp;Semi-autogenous grinding |
| SAMREC | &nbsp;&nbsp;South African Code for the Reporting of Exploration Results |
| Sb | &nbsp;&nbsp;Antimony |
| SDG | &nbsp;&nbsp;Sustainable development goals |
| SG | &nbsp;&nbsp;specific gravity |
| Sn | &nbsp;&nbsp;selenium |
| t | &nbsp;&nbsp;metric tonne |
| t/d | &nbsp;&nbsp;tonnes per day |
| t/m<sup>3</sup> | &nbsp;&nbsp;Tonnes per cubic metre |
| TSF | &nbsp;&nbsp;tailings storage facility |
| UTM | &nbsp;&nbsp;universal transverse mercator |
| V | &nbsp;&nbsp;volt |
| W | &nbsp;&nbsp;west |
| Zn | &nbsp;&nbsp;zinc |
| ZnEq | &nbsp;&nbsp;Zinc equivalent (other payable metal values have been converted to the same value of zinc metal) |

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|:---|:---|
| &nbsp;&nbsp;**Glossary** | &nbsp;&nbsp;**Glossary** |
| &nbsp;&nbsp;**Spanish Term** | &nbsp;&nbsp;**English Translation** |
| &nbsp;&nbsp;1er | &nbsp;&nbsp;primary |
| &nbsp;&nbsp;2do | &nbsp;&nbsp;secondary |
| &nbsp;&nbsp;Acceso | &nbsp;&nbsp;Sublevel access |
| &nbsp;&nbsp;Aire limpio | &nbsp;&nbsp;Fresh air |
| &nbsp;&nbsp;Aire viciado | &nbsp;&nbsp;Exhaust |
| &nbsp;&nbsp;Altura de banco | &nbsp;&nbsp;Bench height |
| &nbsp;&nbsp;Ancho | &nbsp;&nbsp;Width |

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BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 28-3

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| | |
|:---|:---|
| &nbsp;&nbsp;**Glossary** | &nbsp;&nbsp;**Glossary** |
| &nbsp;&nbsp;**Spanish Term** | &nbsp;&nbsp;**English Translation** |
| &nbsp;&nbsp;Ángulo | &nbsp;&nbsp;Dip |
| &nbsp;&nbsp;Bomba estacionaria | &nbsp;&nbsp;Stationary pump |
| &nbsp;&nbsp;Bomba sumergible | &nbsp;&nbsp;Submersible pump |
| &nbsp;&nbsp;Bombeo | &nbsp;&nbsp;pumping |
| &nbsp;&nbsp;Buzon | &nbsp;&nbsp;Ore bin |
| &nbsp;&nbsp;Cara libre | &nbsp;&nbsp;Free face |
| &nbsp;&nbsp;Chimenea | &nbsp;&nbsp;Raise |
| &nbsp;&nbsp;Chimenea de ventilacion | &nbsp;&nbsp;Ventilation raise |
| &nbsp;&nbsp;Circuito | &nbsp;&nbsp;circuit |
| &nbsp;&nbsp;Desarollos | &nbsp;&nbsp;Development |
| &nbsp;&nbsp;Dique de colas | &nbsp;&nbsp;TSF |
| &nbsp;&nbsp;Direccion de tumbe | &nbsp;&nbsp;Ore mining direction |
| &nbsp;&nbsp;Etapa | &nbsp;&nbsp;Stage |
| &nbsp;&nbsp;Exploración | &nbsp;&nbsp;Exploration |
| &nbsp;&nbsp;Filtracion | &nbsp;&nbsp;filtration |
| &nbsp;&nbsp;Flotacion | &nbsp;&nbsp;flotation |
| &nbsp;&nbsp;Flujograma | &nbsp;&nbsp;Flowsheet |
| &nbsp;&nbsp;Galería | &nbsp;&nbsp;Drift (gallery), classified as Superior (main) and Inferior (secondary) |
| &nbsp;&nbsp;Ingeniera | &nbsp;&nbsp;Engineering |
| &nbsp;&nbsp;Ingreso rampa | &nbsp;&nbsp;Portal |
| &nbsp;&nbsp;Mantenimiento | &nbsp;&nbsp;Maintenance |
| &nbsp;&nbsp;Media ambiente | &nbsp;&nbsp;environment |
| &nbsp;&nbsp;Mina | &nbsp;&nbsp;mine |
| &nbsp;&nbsp;Nivel | &nbsp;&nbsp;Level |
| &nbsp;&nbsp;Perforación | &nbsp;&nbsp;drilling |
| &nbsp;&nbsp;Planta Concentradora | &nbsp;&nbsp;Processing Plant |
| &nbsp;&nbsp;Plomo | &nbsp;&nbsp;lead |
| &nbsp;&nbsp;Puente | &nbsp;&nbsp;Pillar |
| &nbsp;&nbsp;Red de bombeo | &nbsp;&nbsp;Pumping system |
| &nbsp;&nbsp;Relleno | &nbsp;&nbsp;Backfill |
| &nbsp;&nbsp;Seccion longitudinal | &nbsp;&nbsp;Long section |
| &nbsp;&nbsp;Seccion transversal | &nbsp;&nbsp;Cross section |
| &nbsp;&nbsp;Seguridad | &nbsp;&nbsp;Security |
| &nbsp;&nbsp;Sistema | &nbsp;&nbsp;System |
| &nbsp;&nbsp;Subnivel | &nbsp;&nbsp;Sublevel |
| &nbsp;&nbsp;Subnivel de relleno | &nbsp;&nbsp;Backfill drift |
| &nbsp;&nbsp;Taladros | &nbsp;&nbsp;Drillholes |
| &nbsp;&nbsp;Taza de bombeo | &nbsp;&nbsp;Water storage pond |
| &nbsp;&nbsp;Ventilador | &nbsp;&nbsp;Fan |
| &nbsp;&nbsp;Veta | &nbsp;&nbsp;Vein |
| &nbsp;&nbsp;Zonas explotadas | &nbsp;&nbsp;Mined zones |

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BOLIVAR MINING OPERATIONS \| NI 43-101 Technical Report PAGE 28-4

## Exhibit 99.30

**Exhibit 99.30**![](ex99-30_001.jpg)

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DATE AND SIGNATURE PAGE

This report entitled NI 43-101 Technical Report, Feasibility Study, Porco Mining Operations, Antonio Quijarro Province, Bolivia effective as of January 1, 2024 was prepared and signed by the following authors:

Original document signed and sealed by:

<u>[*Richard Goodwin*]</u> <u>August 21, 2024</u> <br> Richard Goodwin, P.Eng. Date Signed

Original document signed and sealed by:

<u>[*Garth Kirkham*]</u> <u>August 21, 2024</u> <br> Garth Kirkham, P.Geo. Date Signed

Original document signed and sealed by:

<u>[*Tad Crowie*]</u> <u>August 21, 2024</u> <br> Tad Crowie, P.Eng. Date Signed

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE i

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**NOTICE**

JDS Energy & Mining, Inc. prepared this National Instrument 43-101 Technical Report, in accordance with Form 43-101F1, for Santacruz Silver Mining Ltd. The quality of information, conclusions and estimates contained herein is based on: (i) information available at the time of preparation; (ii) data supplied by outside sources, and (iii) the assumptions, conditions, and qualifications set forth in this report.

Santacruz Silver Mining Ltd. filed this Technical Report with the Canadian Securities Regulatory Authorities pursuant to provincial securities legislation. Except for the purposes legislated under provincial securities law, any other use of this report by any third party is at that party's sole risk.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE ii

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**Table of Contents**

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|:---|:---|:---|:---|:---|
| **1** | **Executive Summary** | **Executive Summary** | **Executive Summary** | **1-1** |
|  | 1.1 | Introduction | Introduction | 1-1 |
|  | 1.2 | Ownership | Ownership | 1-1 |
|  | 1.3 | Location | Location | 1-2 |
|  | 1.4 | History | History | 1-2 |
|  | 1.5 | Geology and Mineralization | Geology and Mineralization | 1-3 |
|  | 1.6 | Metallurgical Testing and Mineral Processing | Metallurgical Testing and Mineral Processing | 1-4 |
|  | 1.7 | Mineral Resource Estimate | Mineral Resource Estimate | 1-5 |
|  | 1.8 | Mineral Reserve Estimate | Mineral Reserve Estimate | 1-7 |
|  | 1.9 | Mining | Mining | 1-8 |
|  | 1.10 | Recovery Methods | Recovery Methods | 1-11 |
|  | 1.11 | Infrastructure | Infrastructure | 1-13 |
|  | 1.12 | Environment and Permitting | Environment and Permitting | 1-16 |
|  |  | 1.12.1 | Environmental Considerations | 1-16 |
|  |  | 1.12.2 | Waste and Water Management | 1-17 |
|  |  | 1.12.3 | Permitting | 1-18 |
|  |  | 1.12.4 | Community Relations | 1-19 |
|  |  | 1.12.5 | Mine Closure | 1-22 |
|  | 1.13 | Capital and Operating Cost Estimates | Capital and Operating Cost Estimates | 1-22 |
|  |  | 1.13.1 | Capital Costs | 1-22 |
|  |  | 1.13.2 | Operating Costs | 1-23 |
|  | 1.14 | Economic Analysis | Economic Analysis | 1-24 |
|  |  | 1.14.1 | Result | 1-24 |
|  |  | 1.14.2 | Sensitivities | 1-28 |
|  | 1.15 | Observations, Risks, Opportunities and Recommendations | Observations, Risks, Opportunities and Recommendations | 1-29 |
|  |  | 1.15.1 | Observations | 1-29 |
|  |  | 1.15.2 | Risks | 1-30 |
|  |  | 1.15.3 | Opportunities | 1-31 |
|  |  | 1.15.4 | Recommendations | 1-32 |

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PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE iii

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|:---|:---|:---|:---|:---|
| **2** | **Introduction** |  |  | **2-1** |
|  | 2.1 | Terms of Reference | Terms of Reference | 2-1 |
|  | 2.2 | Qualified Persons | Qualified Persons | 2-2 |
|  | 2.3 | Site Visit | Site Visit | 2-2 |
|  | 2.4 | List Of Previous Relevant Technical Reports | List Of Previous Relevant Technical Reports | 2-3 |
|  | 2.5 | Units, Currency and Rounding | Units, Currency and Rounding | 2-3 |
| **3** | **Reliance on Other Experts** | **Reliance on Other Experts** | **Reliance on Other Experts** | 3-1 |
| **4** | **Property Description and Location** | **Property Description and Location** | **Property Description and Location** | **4-1** |
|  | 4.1 | Location | Location | 4-1 |
|  | 4.2 | Property Description and Tenure | Property Description and Tenure | 4-2 |
|  | 4.3 | Environmental, Permitting and Social Relations | Environmental, Permitting and Social Relations | 4-4 |
|  |  | 4.3.1 | Regulatory Framework | 4-5 |
|  |  | 4.3.2 | Health, Safety and Economic Development | 4-6 |
|  |  | 4.3.3 | Environment | 4-7 |
|  |  | 4.3.4 | Community Interaction | 4-8 |
| **5** | **Accessibility, Climate, Local Resources, Infrastructure and Physiography** | **Accessibility, Climate, Local Resources, Infrastructure and Physiography** | **Accessibility, Climate, Local Resources, Infrastructure and Physiography** | **5-1** |
|  | 5.1 | Accessibility | Accessibility | 5-1 |
|  | 5.2 | Climate and Physiography | Climate and Physiography | 5-2 |
|  | 5.3 | Infrastructure | Infrastructure | 5-2 |
| **6** | **History** | **History** | **History** | **6-1** |
|  | 6.1 | Management and Ownership | Management and Ownership | 6-1 |
|  | 6.2 | Historical Resource Estimates | Historical Resource Estimates | 6-2 |
|  | 6.3 | Production 2018 to 2022 | Production 2018 to 2022 | 6-4 |
| **7** | **Geological Setting and Mineralization** | **Geological Setting and Mineralization** | **Geological Setting and Mineralization** | **7-1** |
|  | 7.1 | Introduction | Introduction | 7-1 |
|  | 7.2 | Geological Tectonic Framework and Regional Geology | Geological Tectonic Framework and Regional Geology | 7-1 |
|  |  | 7.2.1 | Eastern Cordillera | 7-1 |
|  |  | 7.2.2 | Tacsarian Cycle (Upper Cambrian to Ordovician) | 7-10 |
|  |  | 7.2.3 | The Cordilleran Cycle (Late Ordovician to Late Devonian) | 7-10 |
|  |  | 7.2.4 | Subandean (Gondwana) Cycle (Upper Paleozoic) | 7-11 |
|  |  | 7.2.5 | The Mesozoic to Cenozoic Andean Cycle: The Serere, Puca and Corcoro Supersequences | 7-12 |

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PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE iv

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|  |  | 7.2.6 | The Andean Orogeny | 7-13 |
|  |  | 7.2.7 | Mesozoic to Cenozoic Magmatism | 7-13 |
|  | 7.3 | Local Geology | Local Geology | 7-14 |
|  | 7.4 | Property Geology | Property Geology | 7-16 |
|  | 7.5 | Mineralization | Mineralization | 7-18 |
|  |  | 7.5.1 | Veta San Antonio Principal | 7-20 |
|  |  | 7.5.2 | Elena Vein | 7-20 |
|  |  | 7.5.3 | Vein Ramo Elena | 7-20 |
|  |  | 7.5.4 | Vein Rosario | 7-20 |
|  |  | 7.5.5 | Vein RH6 | 7-20 |
|  |  | 7.5.6 | Veta Colorada Uno | 7-21 |
|  |  | 7.5.7 | Veta Hundimiento | 7-21 |
|  |  | 7.5.8 | Vein California | 7-21 |
| **8** | **Deposit Types** | **Deposit Types** | **Deposit Types** | **8-1** |
| **9** | **Exploration** | **Exploration** | **Exploration** | **9-**1 |
| **10** | **Drilling** | **Drilling** | **Drilling** | **10-1** |
|  | 10.1 | Drilling Summary | Drilling Summary | 10-1 |
|  | 10.2 | Drilling Programs | Drilling Programs | 10-5 |
| **11** | **Sample Preparation, Analyses and Security** | **Sample Preparation, Analyses and Security** | **Sample Preparation, Analyses and Security** | **11-1** |
|  | 11.1 | Drillhole and Sub-Surface Sampling and Security | Drillhole and Sub-Surface Sampling and Security | 11-1 |
|  |  | 11.1.1 | Drill Core Logging, Photography, Sampling and Security | 11-1 |
|  |  | 11.1.2 | Sub-Surface Sampling and Logging | 11-6 |
|  | 11.2 | Sample Preparation and Analysis | Sample Preparation and Analysis | 11-7 |
|  | 11.3 | QA/QC Procedures and Discussion of Results | QA/QC Procedures and Discussion of Results | 11-10 |
|  | 11.4 | QP Statement | QP Statement | 11-18 |
| **12** | **Data Verification** | **Data Verification** | **Data Verification** | **12-1** |
|  | 12.1 | Verifications by the Authors of this Technical Report | Verifications by the Authors of this Technical Report | 12-1 |
|  |  | 12.1.1 | Site Visit & Verification | 12-1 |
|  |  | 12.1.2 | Sample Database Verification | 12-2 |
|  |  | 12.1.3 | Independent Sampling | 12-2 |
|  |  | 12.1.4 | Geological Model Verification | 12-5 |
|  |  | 12.1.5 | Resource Estimation Verification | 12-5 |

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PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE v

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|  |  | 12.1.6 | Conclusions | 12-5 |
|  |  | 12.1.7 | Adequacy Statement | 12-5 |
| **13** | **Mineral Processing and Metallurgical Testing** | **Mineral Processing and Metallurgical Testing** | **Mineral Processing and Metallurgical Testing** | **13-1** |
|  | 13.1 | Company Feed Processing | Company Feed Processing | 13-1 |
|  |  | 13.1.1 | Mill Throughput | 13-1 |
|  |  | 13.1.2 | Feed Grades | 13-2 |
|  |  | 13.1.3 | Lead Production | 13-4 |
|  |  | 13.1.4 | Zinc Production | 13-6 |
|  | 13.2 | Toll Feed Processing | Toll Feed Processing | 13-8 |
|  |  | 13.2.1 | Mill Throughput | 13-8 |
|  |  | 13.2.2 | Feed Grades | 13-9 |
|  |  | 13.2.3 | Lead Production | 13-11 |
|  |  | 13.2.4 | Zinc Production | 13-13 |
|  | 13.3 | Metallurgical Assumptions | Metallurgical Assumptions | 13-16 |
| **14** | **Mineral Resource Estimate** | **Mineral Resource Estimate** | **Mineral Resource Estimate** | **14-1** |
|  | 14.1 | Introduction | Introduction | 14-1 |
|  | 14.2 | Data | Data | 14-1 |
|  | 14.3 | Geology Model | Geology Model | 14-2 |
|  | 14.4 | Data Analysis | Data Analysis | 14-4 |
|  | 14.5 | Composites | Composites | 14-11 |
|  | 14.6 | Evaluation of Outlier Assay Values | Evaluation of Outlier Assay Values | 14-17 |
|  | 14.7 | Specific Gravity Estimation | Specific Gravity Estimation | 14-22 |
|  | 14.8 | Block Model Definition | Block Model Definition | 14-23 |
|  | 14.9 | Resource Estimation Methodology | Resource Estimation Methodology | 14-24 |
|  | 14.10 | Mineral Resource Classification | Mineral Resource Classification | 14-28 |
|  | 14.11 | ZnEq Calculation | ZnEq Calculation | 14-29 |
|  | 14.12 | Mined Out and Sterilized Areas | Mined Out and Sterilized Areas | 14-29 |
|  | 14.13 | Resource Validation | Resource Validation | 14-31 |
|  | 14.14 | Sensitivity of the Block Model to Selection Cut-off Grade | Sensitivity of the Block Model to Selection Cut-off Grade | 14-34 |
|  | 14.15 | Mineral Resource Statement | Mineral Resource Statement | 14-35 |
|  | 14.16 | Discussion with Respect to Potential Material Risks to the Resources | Discussion with Respect to Potential Material Risks to the Resources | 14-37 |

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PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE vi

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| **15** | **Mineral Reserve Estimate** | **Mineral Reserve Estimate** | **Mineral Reserve Estimate** | **15-1** |
|  | 15.1 | Summary | Summary | 15-1 |
|  | 15.2 | Definitions | Definitions | 15-1 |
|  | 15.3 | NSR and COG Determinations | NSR and COG Determinations | 15-2 |
|  |  | 15.3.1 | Operating Costs | 15-2 |
|  |  | 15.3.2 | Metal Prices | 15-2 |
|  |  | 15.3.3 | Metallurgical Recoveries | 15-3 |
|  |  | 15.3.4 | Smelter Terms | 15-3 |
|  | 15.4 | Net Smelter Return and Cut-off Criteria | Net Smelter Return and Cut-off Criteria | 15-3 |
|  | 15.5 | Estimation Methodology | Estimation Methodology | 15-3 |
|  | 15.6 | Mineral Reserve Estimate | Mineral Reserve Estimate | 15-4 |
| **16** | **Mining Methods** | **Mining Methods** | **Mining Methods** | **16-1** |
|  | 16.1 | Introduction | Introduction | 16-1 |
|  | 16.2 | Geotech Analysis & Recon | Geotech Analysis & Recon | 16-1 |
|  | 16.3 | Overview | Overview | 16-3 |
|  | 16.4 | Mine Design | Mine Design | 16-4 |
|  |  | 16.4.1 | Stoping | 16-4 |
|  |  | 16.4.2 | Development | 16-9 |
|  | 16.5 | Mine Services | Mine Services | 16-10 |
|  |  | 16.5.1 | Ventilation System | 16-10 |
|  |  | 16.5.2 | Dewatering | 16-14 |
|  |  | 16.5.3 | Unit Operations | 16-16 |
|  | 16.6 | Mine Equipment | Mine Equipment | 16-20 |
|  |  | 16.6.1 | Equipment List | 16-20 |
|  |  | 16.6.2 | Availability and Utilization Factors | 16-26 |
|  | 16.7 | Mine Personnel | Mine Personnel | 16-26 |
|  | 16.8 | Production Schedule | Production Schedule | 16-27 |
| **17** | **Process Description / Recovery Methods** | **Process Description / Recovery Methods** | **Process Description / Recovery Methods** | **17-1** |
|  | 17.1 | Introduction | Introduction | 17-1 |
|  | 17.2 | Process Plant Description | Process Plant Description | 17-3 |
|  |  | 17.2.1 | Crushing | 17-3 |
|  |  | 17.2.2 | Grinding | 17-3 |
|  |  | 17.2.3 | Flotation | 17-4 |

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PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE vii

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|  |  | 17.2.4 | Concentrate Dewatering | 17-6 |
|  |  | 17.2.5 | Tailings | 17-7 |
| **18** | **Project Infrastructure and Services** | **Project Infrastructure and Services** | **Project Infrastructure and Services** | **18-1** |
|  | 18.1 | Industrial Complex | Industrial Complex | 18-1 |
|  | 18.2 | Yancaviri Camp, Porco, and Agua de Castillo Townsites | Yancaviri Camp, Porco, and Agua de Castillo Townsites | 18-2 |
|  | 18.3 | Power | Power | 18-2 |
| **19** | **Market Studies and Contracts** | **Market Studies and Contracts** | **Market Studies and Contracts** | 19-1 |
|  | 19.1 | Contracts | Contracts | **19-1** |
|  |  | 19.1.1 | Illapa JV | 19-1 |
|  |  | 19.1.2 | Glencore Off-Take Agreement | 19-1 |
|  | 19.2 | Market Studies | Market Studies | 19-1 |
|  | 19.3 | Smelting | Smelting | 19-2 |
|  | 19.4 | Metal Prices | Metal Prices | 19-2 |
| **20** | **Environmental Studies, Permitting and Social or Community Impacts** | **Environmental Studies, Permitting and Social or Community Impacts** | **Environmental Studies, Permitting and Social or Community Impacts** | **20-1** |
|  | 20.1 | Environmental Considerations | Environmental Considerations | 20-1 |
|  |  | 20.1.1 | Climate Change | 20-2 |
|  | 20.2 | Waste and Water Management | Waste and Water Management | 20-4 |
|  |  | 20.2.1 | Solid Waste-Porco | 20-9 |
|  |  | 20.2.2 | Water Management Porco | 20-11 |
|  | 20.3 | Permitting | Permitting | 20-12 |
|  | 20.4 | Community Relations | Community Relations | 20-12 |
|  |  | 20.4.1 | Education | 20-18 |
|  |  | 20.4.2 | Community and Economic Development | 20-18 |
|  |  | 20.4.3 | Local Needs | 20-18 |
|  | 20.5 | Mine Closure | Mine Closure | 20-19 |
| **21** | **Capital and Operating Cost Estimates** | **Capital and Operating Cost Estimates** | **Capital and Operating Cost Estimates** | **21-1** |
|  | 21.1 | Capital Costs | Capital Costs | 21-1 |
|  | 21.2 | Operating Costs | Operating Costs | 21-2 |
| **22** | **Economic Analysis** | **Economic Analysis** | **Economic Analysis** | **22-1** |
|  | 22.1 | Result | Result | **22-1** |
|  | 22.2 | Sensitivities | Sensitivities | 22-5 |
| **23** | **Adjacent Properties** | **Adjacent Properties** | **Adjacent Properties** | **23-1** |
| **24** | **Other Relevant Data and Information** | **Other Relevant Data and Information** | **Other Relevant Data and Information** | **24-1** |
| **25** | **Interpretations and Conclusions** | **Interpretations and Conclusions** | **Interpretations and Conclusions** | **25-1** |
|  | 25.1 | Observations | Observations | 25-1 |
|  | 25.2 | Risks | Risks | 25-1 |
|  | 25.3 | Opportunities | Opportunities | 25-3 |
| **26** | **Recommendations** | **Recommendations** | **Recommendations** | **26-1** |
| **27** | **References** | **References** | **References** | **27-1** |
| **28** | **Units of Measure, Abbreviations, Acronyms, and Glossary of Spanish Terms** | **Units of Measure, Abbreviations, Acronyms, and Glossary of Spanish Terms** | **Units of Measure, Abbreviations, Acronyms, and Glossary of Spanish Terms** | **28-1** |

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PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE viii

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| List of Figures | List of Figures |  |
| Figure 1-1: | Project History | 1-3 |
| Figure 1-2: | Typical Sublevel Stoping Layout | 1-8 |
| Figure 1-3: | Typical Long Section of Shrinkage Stope | 1-9 |
| Figure 1-4: | Porco Mill Flowsheet | 1-12 |
| Figure 1-5: | Industrial Complex of the Porco Mining Operation | 1-14 |
| Figure 1-6: | Yancaviri Camp Site, Porco, and Agua de Castilla Townsites. | 1-15 |
| Figure 1-7: | Details of Yancaviri Camp Facilities | 1-16 |
| Figure 1-8: | Porco Mine Water Balance | 1-18 |
| Figure 1-9: | Porco Surrounding Communities | 1-21 |
| Figure 1-10: | Porco Community Investment | 1-21 |
| Figure 1-11: | Univariate Sensitivities | 1-29 |
| Figure 4-1: | Project Location Map | 4-1 |
| Figure 4-2: | Mineral Tenement Locations | 4-3 |
| Figure 4-3: | Porco Mine Site | 4-4 |
| Figure 5-1: | Project Location Map (showing region) | 5-1 |
| Figure 5-2: | Porco Site Infrastructure | 5-3 |
| Figure 5-3: | TSF Audit Summary | 5-5 |
| Figure 6-1: | Project History | 6-2 |
| Figure 7-1: | Regional Geology Setting | 7-1 |
| Figure 7-2: | Regional Geology Setting with Deposit Types | 7-2 |
| Figure 7-3: | Plate Tectonic Reconstructions of the Neoproterozoic Subcontinent and the Late Precambrian Supercontinent after the Opening of the Southern Iapetus Ocean | 7-5 |
| Figure 7-4: | Plate Tectonic Reconstructions of the Neoproterozoic and Late Precambrian Subcontinents | 7-6 |
| Figure 7-5: | Paleogeography of SW Gondwana Margin in the Early Ordovician | 7-7 |
| Figure 7-6: | The Famatinian – Taconic Orogen in the Middle Ordovician | 7-8 |
| Figure 7-7: | The Ordovician of the Central Andes (Cunningham et al., 1994b) | 7-9 |
| Figure 7-8: | Geological Map of the Porco Caldera (Cunningham et al., 1994b) | 7-15 |
| Figure 7-9: | Simplified Geologic Map of the Porco Deposit (modified from Jiminez et al, 1998) | 7-17 |
| Figure 7-10: | Conceptual Model of the Mineralogical Genesis of the Porco Deposit | 7-19 |
| Figure 8-1: | Conceptual Model of Bolivian Polymetallic Vein Type Deposits (modif. From Heuschmidt, 2000) | 8-3 |
| Figure 10-1: | Plan View of Drillhole Locations at Porco | 10-3 |
| Figure 10-2: | Section View A-A' (azimuth 16°) | 10-4 |

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PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE ix

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| Figure 10-3: | Section View B-B' (azimuth 113°) | 10-4 |
| Figure 10-4: | Section View C-C' (azimuth 127°) | 10-5 |
| Figure 11-1: | Example of Core Marked for Splitting | 11-2 |
| Figure 11-2: | Core Splitting Facilities | 11-3 |
| Figure 11-3: | Samples Prepared for Analysis Transport | 11-4 |
| Figure 11-4: | Sample Submission Form | 11-5 |
| Figure 11-5: | Drill Core Storage Facilities | 11-6 |
| Figure 11-6: | Assay Methods Employed at the Porco Mine | 11-8 |
| Figure 11-7: | Example of Don Diego Laboratory Assay Certificate | 11-9 |
| Figure 11-8: | Plot of Ag g/t Values for Field Blanks | 11-11 |
| Figure 11-9: | Plot of Pb% Vaues for Field Blanks | 11-12 |
| Figure 11-10: | Plot of Zn% Vaues for Field Blanks | 11-12 |
| Figure 11-11: | Plot of Coarse Reject Duplicates – Ag g/t | 11-13 |
| Figure 11-12: | Plot of Coarse Reject Duplicates – Pb% | 11-14 |
| Figure 11-13: | Plot of Coarse Reject Duplicates – Zn% | 11-15 |
| Figure 11-14: | Plot of Pulp Duplicates – Ag g/t | 11-16 |
| Figure 11-15: | Plot of Pulp Duplicates – Pb% | 11-17 |
| Figure 11-16: | Plot of Pulp Duplicates – Zn% | 11-18 |
| Figure 12-1: | Results of Independent Verification Sampling for Ag g/t | 12-4 |
| Figure 12-2: | Results of Independent Verification Sampling for Pb% | 12-4 |
| Figure 12-3: | Results of Independent Verification Sampling for Zn% | 12-5 |
| Figure 13-1: | Porco Mill Company Feed Throughput 2020/2021 | 13-2 |
| Figure 13-2: | Zinc Feed Grade 2020/2021 | 13-3 |
| Figure 13-3: | Lead Feed Grade 2020/2021 | 13-3 |
| Figure 13-4: | Silver Feed Grade 2020/2021 | 13-4 |
| Figure 13-5: | Mill Lead Concentrate Recovery vs. Lead Feed Grade | 13-5 |
| Figure 13-6: | Silver Recovery to the Lead Concentrate vs. Mill Feed Silver Grade | 13-6 |
| Figure 13-7: | Zinc Recovery to the Zinc Concentrate vs. Mill Feed Zinc Grade | 13-7 |
| Figure 13-8: | Silver Recovery to the Zinc Concentrate vs. Mill Feed Silver Grade | 13-8 |
| Figure 13-9: | Porco Mill Toll Feed Throughput 2020/2021 | 13-9 |
| Figure 13-10: | Toll Feed Zinc Grade 2020/2021 | 13-10 |
| Figure 13-11: | Toll Feed Lead Grade 2020/2021 | 13-10 |
| Figure 13-12: | Toll Feed Silver Grade 2020/2021 | 13-11 |
| Figure 13-13: | Mill Lead Concentrate Recovery vs. Lead Feed Grade | 13-12 |
| Figure 13-14: | Silver Recovery to the Lead Concentrate vs. Mill Feed Silver Grade | 13-13 |

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PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE x

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| Figure 13-15: | Zinc Recovery to the Zinc Concentrate vs. Mill Feed Zinc Grade | 13-14 |
| Figure 13-16: | Silver Recovery to the Zinc Concentrate vs. Mill Feed Silver Grade | 13-15 |
| Figure 14-1: | Plan View of Porco Drillholes | 14-2 |
| Figure 14-2: | Plan View of Porco Mineralized Zones and Drillholes | 14-3 |
| Figure 14-3: | Section View of Porco Mineralized Zones and Drillholes Looking South | 14-3 |
| Figure 14-4: | Long Section View of Porco Mineralized Zones and Drillholes Looking West | 14-4 |
| Figure 14-5: | Assay Interval Lengths | 14-11 |
| Figure 14-6: | Full Vein Composite Interval Lengths | 14-12 |
| Figure 14-7: | Box Plot of Zn Composites for the Hundimiento Area | 14-13 |
| Figure 14-8: | Box Plot of Pb Composites for the Hundimiento Area | 14-13 |
| Figure 14-9 : | Box Plot of Ag Composites for the Hundimiento Area | 14-14 |
| Figure 14-10: | Box Plot of Zn Composites for the Central Area | 14-14 |
| Figure 14-11: | Box Plot of Pb Composites for the Central Area | 14-15 |
| Figure 14-12: | Box Plot of Ag Composites for the Central Area | 14-15 |
| Figure 14-13: | Histogram of Ag Composites for the Porco Deposit | 14-16 |
| Figure 14-14: | Histogram of Zn Composites for the Porco Deposit | 14-16 |
| Figure 14-15: | Histogram of Pb Composites for the Porco Deposit | 14-17 |
| Figure 14-16: | Cumulative Probability of Ag Composites for All Veins within the Hundimiento Area | 14-18 |
| Figure 14-17: | Cumulative Probability of Ag Composites for the Pe Vein within the Hundimiento Area | 14-18 |
| Figure 14-18: | Cumulative Probability of Pb Composites for All Veins within the Hundimiento Area | 14-19 |
| Figure 14-19: | Cumulative Probability of Pb Composites for the Pe Vein within the Hundimiento Area | 14-19 |
| Figure 14-20: | Cumulative Probability of Zn Composites for All Veins within the Hundimiento Area | 14-20 |
| Figure 14-21: | Cumulative Probability of Zn Composites for the Pe Vein within the Hundimiento Area | 14-20 |
| Figure 14-22: | Dimensions, Origin and Orientation for the Porco Block Model | 14-24 |
| Figure 14-23: | Long Section View of the Porco Deposit Showing Resource Block by Classification | 14-29 |
| Figure 14-24: | Plan View of Development, Pillars, Mined Out and Sterilized | 14-30 |
| Figure 14-25: | Classified Resources with Mined Out and Sterilized Areas (Dark Blue) | 14-30 |
| Figure 14-26: | Classified Resources with Mined Out and Sterilized Areas (Dark Blue) | 14-31 |
| Figure 14-27: | Long Section View of Porco Block Model with ZnEq Cut-off Grades | 14-32 |
| Figure 14-28: | Long Section View of Measured, Indicated and Inferred Blocks with ZnEq Cut-off Grades along with Mined Out and Sterilized Areas | 14-33 |

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PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE xi

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| Figure 14-29: | Long Section View of Inferred Blocks with ZnEq Cut-off Grades along with Mined Out and Sterilized Areas | 14-33 |
| Figure 16-1: | Underground Long Section of Both Mining Zones | 16-4 |
| Figure 16-2: | Long Section of Typical Sublevel Stoping Operation | 16-5 |
| Figure 16-3: | Cross Section of Typical Sublevel Stoping Operation | 16-6 |
| Figure 16-4: | Typical Long Section of Shrinkage Stope | 16-8 |
| Figure 16-5: | Evolution of the Rock Mass Support System | 16-10 |
| Figure 16-6: | Ventilation Scheme – Central Zone | 16-11 |
| Figure 16-7: | Ventilation Scheme – Hundimiento Zone | 16-13 |
| Figure 16-8: | Pumping Scheme – Central Zone | 16-15 |
| Figure 16-9: | Pumping Scheme – Hundimiento Zone | 16-16 |
| Figure 16-10: | Remote Mucking Platform and Placement | 16-18 |
| Figure 16-11: | Extraction System Diagram | 16-19 |
| Figure 17-1: | Porco Mill Flowsheet | 17-2 |
| Figure 17-2: | Porco Mill Grinding Circuit | 17-4 |
| Figure 17-3: | Porco Mill Rougher Flotation Cells | 17-5 |
| Figure 18-1: | Industrial Complex of the Porco Mining Operation | 18-2 |
| Figure 18-2: | Yancaviri Camp Site, Porco, and Agua de Castilla Townsites. | 18-3 |
| Figure 18-3: | Details of Yancaviri Camp Facilities | 18-4 |
| Figure 19-1: | Historical Silver Price | 19-3 |
| Figure 19-2: | Historical Lead Price | 19-3 |
| Figure 19-3: | Historical Zinc Price | 19-4 |
| Figure 20-1: | Santacruz Bolivia Operations Energy Consumption | 20-3 |
| Figure 20-2: | Waste Classification by Process Source | 20-5 |
| Figure 20-3: | Water Treatment Process | 20-7 |
| Figure 20-4: | Santacruz Bolivia Water Balance | 20-9 |
| Figure 20-5: | Volume Profile of Dam "D" by Stage Height | 20-10 |
| Figure 20-6: | Aerial Photography of the Dam "D" TSF | 20-10 |
| Figure 20-7: | Porco Mine Water Balance | 20-12 |
| Figure 20-8: | Total Investment in Communities | 20-15 |
| Figure 20-9: | Porco Surrounding Communities | 20-17 |
| Figure 20-10: | Porco Community Investment | 20-19 |
| Figure 22-1: | Univariate Sensitivities | 22-5 |

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PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE xii

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List of Tables

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| Table 1-1: | Recovery and Concentrate Grade Estimates | 1-4 |
| Table 1-2: | Base-Case Total Mineral Resources at 11.2% ZnEq Cut-off | 1-6 |
| Table 1-3: | Mineral Reserve Estimate for Porco Mine (January 1, 2023) | 1-7 |
| Table 1-4: | Total Mine Production in 2022 | 1-10 |
| Table 1-5: | List of Mine Personnel | 1-10 |
| Table 1-6: | Environmental Licenses Held by Santacruz | 1-19 |
| Table 1-7: | Actual Combined Capital Requirement for All Bolivian Operations, 2017 to 2022 ($M) | 1-22 |
| Table 1-8: | Projected Capital Requirement for Porco Operations, 2023 to 2027 ($M) | 1-23 |
| Table 1-9: | Unit Operating Costs ($/t) | 1-24 |
| Table 1-10: | Production Forecast – Mining and Processing | 1-25 |
| Table 1-11: | Production Forecast - Concentrate | 1-25 |
| Table 1-12: | Revenue and Cost Projection ($M) | 1-26 |
| Table 1-13: | Cashflow Projection ($M) | 1-27 |
| Table 2-1: | QP Responsibilities | 2-2 |
| Table 2-2: | QP Site Visits | 2-2 |
| Table 4-1: | Mineral Tenements (Sinchi Wayra contribution) | 4-2 |
| Table 5-1: | Tailings Facility "D" Statistics | 5-4 |
| Table 6-1: | Historic Mineral Resource Estimate | 6-3 |
| Table 6-2: | Historic Mineral Resource Estimate for 2018 and 2019 | 6-3 |
| Table 6-3: | Production at the Porco Mine, 2018 to 2022 | 6-4 |
| Table 7-1: | Fluid Inclusion Results | 7-18 |
| Table 10-1: | Porco Drilling Programs in 2000 through 2022 | 10-1 |
| Table 10-2: | Porco Drilling Details from 2000 through January 2023 | 10-6 |
| Table 11-1: | Underground Sample Mineralization Codes | 11-7 |
| Table 11-2: | QA/QC Sample Insertion Rates | 11-10 |
| Table 11-3: | Quantity of Control Samples by Type | 11-11 |
| Table 12-1: | Porco Independent Verification Sampling | 12-3 |
| Table 13-1: | Recovery and Concentrate Grade Estimates | 13-15 |
| Table 14-1: | Data File Statistics | 14-1 |
| Table 14-2: | Vein Codes and Names for the Porco Deposit | 14-4 |
| Table 14-3: | Statistics for Zinc by Vein | 14-6 |
| Table 14-4: | Statistics for Lead by Vein | 14-7 |

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| Table 14-5: | Statistics for Silver by Vein | 14-8 |
| Table 14-6: | Statistics Assay Interval Lengths for the Porco Deposit by Vein | 14-9 |
| Table 14-7: | Outlier Cutting Analysis for the Porco Deposit | 14-21 |
| Table 14-8: | Calculated Specific Gravity by Vein | 14-22 |
| Table 14-9: | Search Ellipse Parameters for the Hundimiento Area | 14-25 |
| Table 14-10: | Search Ellipse Parameters for the Central Area of the Porco Deposit | 14-26 |
| Table 14-11: | Sensitivity Analyses at Various ZnEq Cut-off Grades for Measured, Indicated and Inferred Resources | 14-34 |
| Table 14-12: | Base-Case Total Mineral Resources at 11.2% ZnEq Cut-off | 14-35 |
| Table 14-13: | Base-Case Total Mineral Resources at 11.2% ZnEq Cut-off Split by Area | 14-36 |
| Table 15-1: | Actual Operating Costs for 2022 by Category | 15-2 |
| Table 15-2: | Stope Optimization Parameters by Mine and Stoping Method | 15-4 |
| Table 15-3: | Mineral Reserve Estimate for Porco Mine (January 1, 2023) | 15-4 |
| Table 16-1: | Geomechanical Characterization | 16-2 |
| Table 16-2: | Geomechanical Stability Analysis | 16-2 |
| Table 16-3: | Balance of Air Flows – Central Zone | 16-12 |
| Table 16-4: | Balance of Air Flows – Hundimiento Zone | 16-14 |
| Table 16-5: | Drifting Equipment | 16-21 |
| Table 16-6: | Production Drilling | 16-21 |
| Table 16-7: | Scooptrams and Pneumatic Shovels | 16-22 |
| Table 16-8: | Dump Trucks, Locomotives | 16-24 |
| Table 16-9: | Inventory of Service and Transportation Equipment | 16-25 |
| Table 16-10: | List of Mine Personnel | 16-26 |
| Table 16-11: | Total Mine Production in 2022 | 16-27 |
| Table 19-1: | Metal Price and Exchange Rate | 19-4 |
| Table 20-1: | Total Waste Quantification and Treatment/Disposal | 20-6 |
| Table 20-2: | Santacruz Bolivia Water Volumes | 20-8 |
| Table 20-3: | Stored Solid Waste Tonnages | 20-11 |
| Table 20-4: | Environmental Licenses Held by Santacruz | 20-12 |
| Table 20-5: | Communities and Population Proximal to Santacruz Operations | 20-13 |
| Table 20-6: | Concerns put forth by Proximal Communities in 2022 | 20-14 |
| Table 20-7: | Porco Local Populations | 20-17 |
| Table 21-1: | Actual Combined Capital Requirement for All Bolivian Operations, 2017 to 2022 ($M) | 21-1 |
| Table 21-2: | Projected Capital Requirement for Porco Operations, 2021 to 2027 ($M) | 21-2 |
| Table 21-3: | Unit Operating Costs ($/t) | 21-2 |
| Table 22-1: | Production Forecast – Mining and Processing | 22-1 |
| Table 22-2: | Production Forecast - Concentrate | 22-2 |
| Table 22-3: | Revenue and Cost Projection ($M) | 22-2 |
| Table 22-4: | Cashflow Projection ($M) | 22-4 |
| Table 25-1: | Base-Case Total Mineral Resources at 11.2% ZnEq Cut-off | 25-2 |

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1 EXECUTIVE SUMMARY

1.1 Introduction

JDS Energy & Mining Inc. (JDS) was commissioned by Santacruz Silver Mining Ltd. (Santacruz) to prepare a Technical Report in accordance with the Canadian Securities Administrators' National Instrument 43-101 and Form 43-101F1, collectively referred to as National Instrument (NI) 43-101 for the Porco Project (Porco or the Project or the Mine) located in the Porco Municipality of the Antonio Quijarro Province, Bolivia.

The Porco Mine has been active for nearly 500 years and is currently producing Zinc/Silver and Lead/Silver concentrates. The complex consists of an underground mine, concentrator plant, maintenance workshop, tailing storage facility, water treatment plant, supplies warehouse, main office, two hospitals and Yancaviri Camp. Located 50 km southwest of Potosí City in Antonio Quijarro province, the mine is comprised of two underground mining sectors: Central and Hundimiento.

This report is the first declaration of resources and reserves, for the Porco base metals underground mining operation since its acquisition by Santacruz. The mine is fully operational at the time of this report's preparation. The effective date of both the resource and the reserve is January 1, 2023, which is approximately 18 months before the report date. Production data for the calendar year 2023 has been included in Section 24 Other Relevant Data and information to show the depletion and typical replenishment of resources and reserves over a calendar year.

1.2 Ownership

On October 11, 2021, Santacruz entered into the Definitive Agreement with Glencore whereby Santacruz agreed to acquire a portfolio of Bolivian silver assets from Glencore, including the following: (a) a 45% interest in the Bolivar Mine and the Porco Mine, held through an unincorporated joint venture between Glencore's wholly-owned subsidiary Contrato de Asociación Sociedad Minera Illapa S.A. (Illapa) and COMIBOL, a Bolivian state-owned entity; (b) a 100% interest in the Sinchi Wayra S.A. (Sinchi Wayra) business, which includes the producing Caballo Blanco mining complex; (c) the Soracaya exploration project; and (d) the San Lucas ore sourcing and trading business.

On March 18, 2022, Santacruz completed this purchase, including Glencore's interest in the Porco Mine.

Santacruz thus owns 100% of the two Bolivian operating companies Illapa and Sinchi Wayra, which in turn own 45% of the Bolivar Mine, 45% of the Porco Mine, and 100% of the Caballo Blanco mining complex.

Sinchi Wayra is the operating company for all three active mining operations, including the Porco mine.

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This report is the first declaration of resources and reserves, for the Porco base metals underground (UG) mining operation since its acquisition by Santacruz.

1.3 Location

Porco Mine is located in Bolivia, Potosi Department, Antonio Quijarro province, 50 km southwest of Potosí City. The mine is 150 km via paved National Highway 5 from a commercial airport at Uyuni and 581 km to the capital, La Paz. A 5 km gravel access road to the mine site goes through the communities of Agua de Castilla and Porco.

1.4 History

Evidence of silver mining at Porco goes back to pre-Columbian times. Porco was a silver source for the Inca, later the Spanish, and others through the late 19<sup>th</sup> century. As the world silver market began to collapse in the 1880's and early 1890's, a major shift to tin mining began to meet the increased demand of the industrialized world. Wealthy tin barons in Bolivia held much influence in national politics until they were marginalized by the nationalization of the three largest tin mining companies following the 1952 revolution. Bolivian miners played a critical part in the country's organized labor movement from the 1940s to the 1980s and continue to be an important stakeholder.

Porco became a resource of newly formed Bolivian Mining Corporation (COMIBOL), under whose management it operated until leased to private "Iris Mines" through subsidiary Compania Minera del Sur (COMSUR) in 1962. Emergency economic measures by the government in response to the international tin market crash in 1985 included massive layoffs of miners.

Porco Mine operates under the management of Sinchi Wayra S.A. (formerly COMSUR S.A.), under a joint venture agreement with the Bolivian government (COMIBOL) named Contrato de Asociación Sociedad Minera Illapa S.A. (Illapa) and (COMIBOL) entered this Joint Venture Agreement (the Illapa JV) on December 4, 2014, by virtue of Public Deed N° 1356/2014. The duration of the Illapa JV is 15 years, with the possibility of extending the term for the same duration. Under the Illapa JV, ownership is 55% COMIBOL and 45% Illapa. In the event of any disagreement, the Illapa JV has an arbitration clause with seat in La Paz, Bolivia, under UNCITRAL Rules.

On October 11, 2021, Santacruz entered into the Definitive Agreement with Glencore whereby Santacruz agreed to acquire a portfolio of Bolivian silver assets from Glencore. The Assets include: (a) Glencore's 45% interest in the Bolivar Mine and the Porco Mine, held through an unincorporated joint venture between Glencore's wholly-owned subsidiary Illapa and COMIBOL, a Bolivian state-owned entity; (b) a 100% interest in the Sinchi Wayra business, which includes the producing Caballo Blanco mining complex; (c) the Soracaya exploration project; and (d) the San Lucas ore sourcing and trading business.

On March 18, 2022, Santacruz completed this purchase, including Glencore's interest in the Caballo Blanco mining complex. The Caballo Blanco mining complex has continued to operate since that date under the management of Santacruz.

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Sale of concentrates are subject to an Off-Take Agreement with Glencore International AG as buyer, under Contract N°180-13-14212-P, and Contract N°062-13-14190-P, both entered into in 2013, with all their addendums and amendments. These agreements are "evergreen" meaning that they are in effect through the life of mine.

**Figure 1-1: Project History**

![](ex99-30_002.jpg)

Source: Glencore (2021)

1.5 Geology
 and Mineralization

The Bolivar, Porco and Caballo Blanco deposits are located in the central part of the Eastern Cordillera, a thick sequence of Paleozoic marine siliciclastic and argillaceous sedimentary rocks deposited on the western margin of Gondwana and deformed in a fold-thrust belt. There were two major tectonic cycles in the Paleozoic: The Lower Paleozoic Famatinian cycle (the Tacsarian and Cordilleran cycles of Bolivia), and the Upper Paleozoic Gondwana cycle (Subandean cycle of Bolivia).

The Porco silver-zinc-tin deposit is located 35 km southwest of the Cerro Rico de Potosí deposit on the southeastern edge of the Los Frailes volcanic field. It was the first silver deposit discovered in Bolivia, with exploitation dating to pre-colonial times. The geology has been described by Sugaki et al. (1983), Cunningham et al. (1993, 1994a, b) and Jiménez et al. (1998).

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The deposit is hosted by a north-south-elongated caldera that is 5.0 km x 3.0 km and formed at 12.0 ± 0.4 Ma with the eruption of the crystal-rich dacitic Porco Tuff. Well-defined topographic walls of the caldera cut Ordovician phyllites and Cretaceous sandstones. The 12.1 ± 0.4 Ma Apo Porco stock (4,886 masl) occurs on the southern margin of the caldera. Mineralization is associated with the younger 8.6 ± 0.3 Ma Huayna Porco stock (4,528 masl) in the center of the caldera. Radial dykes, alteration and metals are zoned around the stock. To the north, the Porco Tuff is overlain by the ignimbrites of the Los Frailes Formation dated at 6 to 9 Ma.

Mineralization occurs in NNE to NE-trending veins that cut the Porco Tuff about 1 km east of the Huayna Porco stock. The deposit is zoned around the stock with cassiterite proximal to the stock and base metals, mainly sphalerite and galena, further away. The upper parts of the veins are silver-rich with pyrargyrite, acanthite and stephanite. The main structure is the San Antonio vein which strikes N10º - 30ºE and dips between 70º and 85º to the east. It is 300 m in vertical extent and 1.2 m to 2.0 m in width. To the south, the vein branches into the Oriente, Misericordia, and Santos veins, whose lengths vary between 500 m to 1,500 m. The main ore minerals are pyrite, sphalerite, galena, argentiferous galena, native silver, chalcopyrite, and arsenopyrite in a gangue of quartz. Other important structures are the Muestra Grande vein on Huayna Porco Hill, where the grade reached 2,300 g/t Ag (Sugaki et al., 1983), and the Rajo Zúñiga vein, which strikes N30ºE and dips 75º-80ºE. The latter vein, with widths between 1.0 m and 1.5 m, was exploited in a 100 m x 20 m open pit. This altered dacite-hosted vein is accompanied by associated veinlets and disseminations in the wall rock and consists of cassiterite, wolframite, galena, silver sulphosalts, and pyrite.

1.6 Metallurgical
 Testing and Mineral Processing

The processing plant at the Porco Mine has been operating since 1992. The recoveries used in this report are derived from the results of the plant operation over the period of August 2020 to July 2021. Porco mill: a lead concentrate and a zinc concentrate. While both concentrates pay for the metal they are named for and for silver, a lead concentrate does not pay for zinc contained and the zinc concentrate does not pay for lead contained, so these recoveries are not included when summarizing the total recoveries.

The results from this analysis can be found in Table 1-1.

**Table 1-1: Recovery and Concentrate Grade Estimates**

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| | **Concentrates** | **Concentrates** | **Concentrates** | **Concentrates** |
| | **Lead Concentrate** | **Lead Concentrate** | **Zinc Concentrate** | **Zinc Concentrate** |
| <br>**Parameter** | **Company Feed** | **Toll Feed** | **Company Feed** | **Toll Feed** |
| Zn Recovery% | N/A | N/A | 93 | 86 |
| Pb Recovery% | 12.46\*(Lead feed grade %) + 68.98 | 8.28\*(Lead feed grade %) + 63.58 | N/A | N/A |
| Ag Recovery% | &nbsp;&nbsp;&nbsp;&nbsp;0.919 x (Silver Feed Grade) +<br> 37.743 | 32 | -0.0957 x (Silver Feed Grade) +<br> 47.874 | 50 |

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| &nbsp;&nbsp;&nbsp;&nbsp;<br>**Parameter** | &nbsp;&nbsp;&nbsp;<br>**Unit** | **Concentrates** | **Concentrates** | **Concentrates** | **Concentrates** |
| &nbsp;&nbsp;&nbsp;&nbsp;<br>**Parameter** | &nbsp;&nbsp;&nbsp;<br>**Unit** | **Lead Concentrate** | **Lead Concentrate** | **Zinc Concentrate** | **Zinc Concentrate** |
| &nbsp;&nbsp;&nbsp;&nbsp;<br>**Parameter** | &nbsp;&nbsp;&nbsp;<br>**Unit** | **Company Feed** | **Toll Feed** | **Company Feed** | **Toll Feed** |
| **Concentrate Grade** | **Concentrate Grade** | **Concentrate Grade** | **Concentrate Grade** | **Concentrate Grade** | **Concentrate Grade** |
| Zn | % | 12 | 12 | 50 | 50 |
| Pb | % | 51 | 56 | 0.39 | 0.55 |
| Ag | g/t | 6480 | 2900 | 273 | 310 |

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1.7 Mineral
 Resource Estimate

The Porco Mine is an "advanced property" and is a well-established, active mining operation. Glencore and subsequently Santacruz Silver has performed exploration and resource expansion drilling of 203 surface and underground drillholes at the Porco project since 2000 totalling 55,804.3 m. The 205 drillholes and 30,348 underground channels in the database were supplied in electronic format by Santacruz. This included collars, downhole surveys, lithology data and assay data (i.e., Ag g/t, Pb%, Zn%, Fe%).

Verification of the Porco drillhole and underground sample assay databases are primarily focused on silver, lead and zinc in addition to iron, arsenic, sulphur and tin. Sample databases were supplied in Excel<sup>TM</sup> format and in LeapFrog<sup>TM</sup>. Checks against source data and assay certificates showed agreement. Statistical analyses used to investigate and identify errors were performed and resulted in minor issues. These have been corrected and it is recommended that a continued program of random "spot checking" the database against assay certificates be employed.

During the 2023 site visit, an extensive independent sampling verification plan was implemented with a total of 80 samples collected across from the Bolivar, Porco and Caballo Blanco operations. The Don Diego laboratory is an NB/ISO/IEC 17025:2018 accredited laboratory which performs all assay analyses for the mining and processing operations for Sinchi Wayra including Porco. The Don Diego laboratory in owned and operated by the Issuer, Santacruz.

Results of the verification samples indicates that the regression predictions perfectly fit the data meaning that the check sampling program successfully verified and validated the data and although, these results are not a complete audit of the laboratory, they do verify that the assay results are suitable for resource estimation purposes.

The geological and lithological solid domain models were supplied by Santacruz in both Datamine<sup>TM</sup> and LeapFrog<sup>TM</sup> which are both industry-leading software systems. The QP imported the multiple vein domains into a similar system called MineSight<sup>TM</sup> to verify solids volumes and ensure matching of the solids domains against the drillhole and sample database. Results confirmed location and extent of volumes are appropriate to resource estimation purposes.

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Resource block models were supplied in Datamine<sup>TM</sup> format which is an industry recognized software system used for resource estimation. These models were then imported to MineSight<sup>TM</sup> for verification of the resource estimation. In addition, independent estimations were run using the verified sample data and vein domains employing inverse distance estimations to ensure reasonableness and verify the resources independently. Results illustrated good agreement between the original and verification models. Verification of the SG regression analysis was also performed by comparing measured versus calculated density values.

The mineral resources were estimated in conformity with CIM's "Estimation of Mineral Resources and Mineral Reserves Best Practices Guidelines" (December 2019) and are reported in accordance with NI 43-101 guidelines. The Qualified Person evaluated the resource in order to ensure that it meets the condition of "reasonable prospects of eventual economic extraction" as suggested under NI 43-101. The criteria considered were confidence, continuity and economic cut-off. The resource listed below is considered to have "reasonable prospects of eventual economic extraction".

Table 1-2 shows the Mineral Resource Statement for the Porco deposit. This table illustrates the mineral resources defined within the Hundimiento and Central areas.

**Table 1-2: Base-Case Total Mineral Resources at 11.2% ZnEq Cut-off**

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| **Total Porco 2023 Mineral Resources** | **Total Porco 2023 Mineral Resources** | **Total Porco 2023 Mineral Resources** | **Total Porco 2023 Mineral Resources** | **Total Porco 2023 Mineral Resources** | **Total Porco 2023 Mineral Resources** |
| **Mine** | **Category** | **Tonnes ('000)** | **Zn (%)** | **Pb (%)** | **Ag (g/t)** |
| **Porco** | Measured | 566 | 17.17 | 0.88 | 202 |
| **Porco** | Indicated | 253 | 16.38 | 1.02 | 166 |
| **Porco** | Total M+I | 819 | 16.92 | 0.92 | 191 |
| **Porco** | Inferred | 1007 | 15.16 | 0.92 | 117 |

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Notes:

1) The current Resource Estimate was prepared by Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd.

2) All mineral resources have been estimated in accordance with CIM definitions, as required under NI43-101.

3) The Mineral Resource Estimate was prepared using a 11.2% zinc equivalent cut-off grade. Cut-off grades were derived from $25.20/oz silver, $1.38/lb zinc and $1.20/lb lead, and process recoveries of 91% for zinc, 70% for lead, and 89.7% for silver. This cut-off grade was based on current smelter agreements and total OPEX costs of $120.22/t based on 2022 actual costs plus capital costs of $48.68/t, with process recoveries of 91.0% for zinc, 70.0% for lead, and 89.7% for silver. All prices are stated in $USD.

4) An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

5) Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not account for a resource's mineability, selectivity, mining loss, or dilution. All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

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1.8 Mineral
 Reserve Estimate

The January 1, 2023 reserve estimate represents the validation of Santacruz's internally- generated mineral reserve estimate by QP Goodwin. All work on the reserve by the Santacruz mine design team and the validation exercises were done in DeswikTM. The following process was used for this work:

● An NSR calculation and cut-off grade (COG) was developed by the QP using data provided by Santacruz;

● The reserve estimation methodology was reviewed, checked, and approved by the QP;

● Mine technical staff prepared a Life of Mine Plan (LOM) for the deposits using the NSR and COG provided by the QP. The LOM plan was prepared specifically for this reserve estimation and does not include inferred resources; and

● All LOM models were downloaded and reviewed by the QP for conformance to the methodology, proper application of the NSR cut-off grade, and correct application of agreed upon dilution and recovery factors.

The QP is satisfied that this exercise resulted in a valid reserve determination. The Mineral Reserve Estimate for Porco Mine is shown in Table 1-3.

**Table 1-3: Mineral Reserve Estimate for Porco Mine (January 1, 2023)**

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| **Mine** | **Category** | **Tonnes** | **Zn (%)** | **Pb (%)** | **Ag (g/t)** |
| **Hundimiento** | Proven | 95647 | 10.35 | 0.73 | 208 |
| **Hundimiento** | Probable | 48381 | 11.99 | 0.94 | 192 |
| **Hundimiento** | Total | 144028 | 10.90 | 0.80 | 203 |
| **Central** | Proven | 66202 | 15.67 | 0.61 | 143 |
| **Central** | Probable | 108943 | 13.30 | 0.69 | 120 |
| **Central** | Total | 175145 | 14.19 | 0.66 | 129 |
| **Total Porco** | Proven | 161849 | 12.53 | 0.68 | 181 |
| **Total Porco** | Probable | 157323 | 12.90 | 0.77 | 142 |
| **Total Porco** | Total | 319172 | 12.71 | 0.72 | 162 |

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1.9 Mining

The active production originates from two main areas; Hundimiento and Central zones. Each mineralized zone employs one of two mining methods based on vein and surrounding ground characteristics. The Porco deposit consists of multiple, relatively thin high-grade veins. The mining methods used vary according to the continuity, dip, and width of these veins. Current mining methods employed include sublevel longhole stoping with backfill, shrinkage stoping.

● "Hundimiento" is the more modern section of the mine and is developed mostly with trackless methods using an access ramp to move men and materials between levels. The mineralized zones are predominantly wider and steeper dipping thus, stoping utilizes mechanized sub level stoping with backfill. Some shrinkage stoping is also done in this area where applicable. All waste rock stays in the mine; and

● "Central" utilizes conventional shrinkage mining exclusively. Veins are generally thin and high grade and the wall rock competent. Mineralized material is hauled via rail on each active level to the shaft for hoisting to surface. Levels are spaced at a nominal 45 m and level connections are via manway raises and the main shaft. All waste rock stays in the mine.

Currently each mining area provides roughly 50% of the total mine production.

Then Long hole method of stoping which is used in the Hundimiento zone uses mechanized and trackless equipment to prepare each stoping block (Figure 1-2). It begins with driving two main levels 45 m vertically apart with a section of 3.0 m x 3.5 m with their respective counter galleries and entrances every 40 m (section 3.0 m x 3.0 m).

**Figure 1-2: Typical Sublevel Stoping Layout**

![](ex99-30_003.jpg)

Source: Sinchi Wayra (2022)

Shrinkage is stoping method used in the Central zone with smaller stope dimensions to allow rapid mining of smaller stopes and less mineral inventory stored in the stope (Figure 1-3). Dimensions of each panel are 15 m long and 20 m high.

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**Figure 1-3: Typical Long Section of Shrinkage Stope**

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Source: Sinchi Wayra (2022)

Shrinkage is used in veins with dips greater than 45° and with widths less than one meter and geomechanical characteristics of the rock mass of regular quality in relation to the hanging and footwalls of the vein.

The mine employs the following mining equipment:

● Two Resemin Muki FF single boom jumbo rigs with a power of 75 HP that drill between 2.40 and 3.0 m long holes. They are generally used for secondary development (horizontal vein developments) to prepare sublevels whose nominal dimensions are 3.0 m x 3.5 m;

● Two Resemin Small Bolter 77 units to install rockbolts and mesh. These units have a power of 75 HP with a drilling capacity of 3.0 m;

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● Two Resemin Raptor Mini DH drills for drilling long holes using the "Sub Level Stoping" method. These have a drill range of 15 m;

● Six scooptrams ranging in size from 1 to 2 yd<sup>3</sup> bucket capacity; and

● Three Dux DT12 8 t trucks and two Trident 6 t trucks.

Total Mine Production in 2022 is shown in Table 1-4.

**Table 1-4: Total Mine Production in 2022**

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| | **Total** |
| Production (tonnes) | 181153 |
| Waste rock (tonnes) | 45710 |
| Backfill Hauled (tonnes) |  |
| Zinc (%) | 7.10 |
| Lead (%) | 0.62 |
| Silver (g/t) | 118 |
| Primary Devt Horizontal (m) | 1621 |
| Primary Devt Vertical (m) | 335 |
| Secondary Devt Horizontal (m) | 4796 |
| Secondary Devt Vertical (m) | 1643 |

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Source: Santacruz (2023)

Total Manpower at the mine site including Mine, Plant, Maintenance, Services, and General and administrative in 2022 totaled 618 people consisting of 358 direct employees and 260 contractors. In the breakout table below, the contractors fill mostly the services roles.

**Table 1-5: List of Mine Personnel**

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| **Mine** | **243** |
| Plant | 44 |
| Engineering and Maintenance | 38 |
| General & Administrative | 33 |
| Contractors | 260 |
| **Total** | **618** |

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Source: Santacruz (2023)

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Mining in the upper areas, and adjacent to active mining operations, is carried out by "Cooperativas". These groups are independent miners with which Illapa has informal agreements allowing them to mine certain areas of the deposit. Ore mined under this agreement is processed at the Porco plant on a toll basis. In 2013, it was agreed that Contrato de Asociación Sociedad Minera Illapa S.A. would exploit the levels lower than elevations 4,213 and 4,225, in the central zone. However, members of the Cooperatives regularly violate the agreement and access active mining areas below these agreed boundaries, which is both a safety and production issue. As well, environmental licenses and controls are not in place for Cooperatives and little or nothing is done to regulate the environment in their work areas.

The production from cooperative mined areas is separate from that planned and exploited by Illapa. The Cooperative system is one method to reduce illegal activity and have some positive influence on operating standards and control over areas being mined, however the impacts of blocked mine access, unauthorized entry, and activities in active mining areas remain significant.

1.10 Recovery
 Methods

The Porco Mill, which has two sources of feed (company feed and toll feed), has been in production since 1992. The mill processes the company and toll feeds separately.

The mill uses a crushing, grinding, and flotation flowsheet to recover a lead concentrate and a zinc concentrate. Both concentrates are sold to Glencore by overseas shipment through Antafagasta Chile. The zinc concentrate is shipped as a bulk product. The lead concentrate, due to local laws, is bagged prior to shipping.

The mill generally separates company and toll feed into different days, but there are a few days where the feed is processed on the same day, with a shutdown in between to separate them.

The feed grades for the company feed are measured as is typical for a processing plant, by taking samples from the process at the cyclone overflow and performing a reconciliation each month based on concentrate produced and tailings samples. The toll ore has extra sampling as part of the contract with the local minors. The ore is received by San Lucas, often in 1-2 t lots, where it is weighed and sampled. The ore is combined on a toll feed stockpile to be fed to the mill. The toll feed follows the same sampling and reconciliation procedure as the company ore.

The plant flowsheet for the Porco mill, which can be seen in Figure 1-4, is a typical differential flotation circuit to produce lead and zinc concentrates.

The ore is crushed in preparation for feed to the grinding circuit. The grinding circuit utilizes a SAG/Ball mill combination to grind the feed to a P80 of 100 µm.

The flotation circuit recovers both lead and zinc to a bulk concentrate. The bulk concentrate then undergoes cleaner flotation to remove a lead concentrate. The tailings from the lead cleaning circuit becomes the zinc concentrate. Both of the concentrates are filtered for shipping to the smelter. The lead concentrate is bagged for shipping, while the zinc concentrate is shipped bulk in trucks.

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**Figure 1-4: Porco Mill Flowsheet**

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Source: Glencore (2021)

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1.11 Infrastructure

The industrial complex for the Porco operation comprises both mine portals, the processing plant, and all services to support mining and processing, as detailed on Figure 1-5. This includes:

● Various technical, administrative offices, and mine operations office;

● Maintenance facilities for all surface and underground equipment;

● Surface stockpiles;

● Warehousing facilities for mine and processing supplies, including reagents;

● A dining hall for technical and administrative staff;

● A first aid station;

● Fuel storage and a refilling station;

● A one million liter water storage tank;

● An explosives magazine;

● Water treatment; and

● Mine services, such as a mine dry, power, water supply, and compressed air.

The industrial site is gated and has a security force.

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**Figure 1-5: Industrial Complex of the Porco Mining Operation**

![](ex99-30_006.jpg)

Source: Santacruz (2023)

The Yancaviri camp area is located approximately 5 km from the industrial area of the Porco Mine operation and approximately 2 km from the town of Agua de Castilla (Figure 1-6).

The camp provides housing for technical staff of the operation and visitors. It is equipped with a cookhouse and dining hall, gymnasium and basketball court (Figure 1-7).

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The camp site also houses the concentrate storage facility and the railway loadout for concentrate shipment.

The Yancaviri is also gated with a security force.

**Figure 1-6: Yancaviri Camp Site, Porco, and Agua de Castilla Townsites.**

![](ex99-30_007.jpg)

Source: Santacruz (2023)

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**Figure 1-7: Details of Yancaviri Camp Facilities**

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Source: Santacruz (2023)

1.12 Environment
 and Permitting

1.12.1 Environmental
 Considerations

Responsible environmental management is a critical part of Santacruz's license to operate and our responsible, compliant operation of Bolivian assets has continued for the last 30 years. Environmental Compliance with national laws and regulations is the basis of Santacruz's environmental management system and is governed by a framework of oversight by the relevant Environmental Authority. Its environmental commitments are reported to the authorities annually in an Environmental Monitoring Report, which summarizes environmental management of its operations under applicable laws and regulations.

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1.12.2 Waste
 and Water Management

Waste management is an important part of Santacruz's Comprehensive Environmental Management, which includes a waste management plan to classify, handle, and store waste separately for proper disposal or treatment. Waste management complies with Environmental Law No. 1333, its Regulations on Solid Waste Management, and its supplementary regulations, focusing primarily on the sectoral requirements of the Environmental Regulation for Mining Activities for waste rock and tailings.

1.12.2.1 Solid
 Waste

There are a total of 9 tailings dams at the Porco mine. Eight of the tailings dams have been decommissioned. All of the tailings facilities are inspected regularly and maintained to the standards set out by the Canadian Dam Association guidelines. Dams are under the supervision of engineers from AMEC (now Wood Engineering) and regular external audits are conducted by a third-party engineering firm.

The active Tailings Storage Facility (dam "D") began operations on March 3, 1998. Initially designed by AGRA Earth & Environmental Ltda. For the first two phases., and AMEC for the current active expansion. The facility meets current international standards. The impoundment is of downstream construction and the dam lined with 60 mil HDPE. A system of well and piezometers are in place to monitor the facility's performance. Construction of Phase VI begun in 2018 was completed in 2019 and included recommended work to reinforce areas of the foundation. Another expansion was completed in 2021, and construction of the next expansion is planned for Q3 2024.

Tailings are discharged along the inside face of the dam at 25-29% solids, forming a tailings beach for additional support, and keeping the water away from the dam. The water reclaim system consists of a barge mounted pump system to form a closed loop with the process plant. The site is zero discharge. There exists capacity to contain all tailings to be generated by processing the stated reserves.

1.12.2.2 Water
 Management

Water management has been identified as the most critical environmental area. Water is a shared resource of high social, environmental, and economic value, which is also a critical component of Santacruz's mining and metallurgical activities. Mining operations are located in the Bolivian Highlands, in areas with low precipitation, high evapotranspiration, and threats of drought.

Porco Mine is a zero-discharge operation. The mine produces about 35 liters/s excess water, which combined with that precipitation captured in the Tailings Storage Facility makes up 85% of the fresh water supply and is the major source for Industrial make-up water. Treated discharge is reused for drilling and dust suppression water underground and the process plant uses mine water combined with reclaim from the Tailings Storage Facility. Porco Mine has permits in place for maximum water needed, however limits the use of fresh makeup water from the Jalsuri spring to potable needs at campsite and offices, and to prepare certain reagents.

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**Figure 1-8: Porco Mine Water Balance**

![](ex99-30_009.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

1.12.3 Permitting

Santacruz Silver operates the Porco mine as a joint venture with the Bolivian Government (COMIBOL) The structure of the contract with COMIBOL is a "Partnership Contract governing Bolivar and Porco Mines (CA-MBP), and its purpose is to develop and implement a mining operation for the treatment of the existing mineralogical reserves and resources in the Bolívar and Porco Mines, by the exploitation, preparation, beneficiation and sale of mineral concentrates. Contrato de Asociación Sociedad Minera Illapa S.A. is authorized as operator and responsible of executing on behalf of COMIBOL, all the operations and activities of the association contract. The shares of CA-MBP are 55% for COMIBOL and 45% for Contrato de Asociación Sociedad Minera Illapa S.A." This renewable agreement expires in 2028.

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Mining Contracts that grant the right to the subsoil mining resource are granted by the Mining Administrative Jurisdictional Authority (AJAM) over the ATE mining areas, and a contract is granted for each area or contiguous group of areas. Recent changes to the laws and government personnel have pushed Santacruz contract updates into a transitionary period waiting for final signatures and approvals. Santacruz holds Special Transitory Authorizations for each contract area which are officially designated "Mining Administrative Contracts for Adaptation". As of the effective date, approximately half of the applications have been transitioned, and the remainder fall under Article 187 of Law No. 535 on Mining and Metallurgy, which states:

*<u>ARTICLE 187</u>. (CONTINUITY OF MINING ACTIVITIES). Holders of Special Transitory Authorizations to be adapted or in the process of adaptation will continue their mining activities, with all the effects of their acquired or pre- constituted rights until the conclusion of the adaptation procedure.*

 

Santacruz has fully complied with this administrative procedure and is waiting for the Mining Administrative Authority to issue the relevant documents. It should be noted that this public entity has a considerable delay in the issuance of these documents.

Environmental Licenses have been formally granted to allow operation for all mining activity, by the Ministry of Environment and Water. The following table shows the licenses held by Santacruz:

**Table 1-6: Environmental Licenses Held by Santacruz**

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| | |
|:---|:---|
| **Operation** | **License** |
| Bolívar | 040603-02-da-0324/14 |
| Porco | 051203-02-da-0031/14 |
| Caballo Blanco – Colquechaquita Mine | 050101-02-da-131/11 |
| Caballo Blanco – Mina Reserva and Tres Amigos | 050101-02-da-561/11 |
| Caballo Blanco – Don Diego Concentrator Plant | 050302-02-da-003/2024 |
| Caballo Blanco – San Lorenzo Mine | 050101-02-da-005/06 |
| Comco | 050101-02-da-006/09 |
| Soracaya | 050801-02-CD-C3-002/2017 |
| Aroifilla Thermoelectric Plant | 050101-04-da-007/2023 |
| Yocalla Hydroelectric Plant | 050103-05-da-006/2023 |

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1.12.4 Community
 Relations

Santacruz mining projects are mostly well-established operations with a long history and a developed infrastructure, which provide direct benefits to employees and supporting businesses. However, the mines are located in rural to semirural areas in which the surrounding mostly agricultural communities can benefit from each operation only indirectly or through company outreach. Santacruz supports these communities by addressing services that are lacking, and helping to create value with economic development programs, and other forms of support.

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A key player connected with all Bolivian Mines and surrounding areas are the mining cooperatives which are organized independent mining entities, some quite capable and organized with their own equipment. Recognized by the government as a valid economic activity for local development, they conduct their activities in abandoned mines or expropriating active mines, which can pose risks to business. The relationship is not completely one-sided as the Cooperatives sell mineralized material to process their product, thus mechanisms are in place to face possible subjugations, protect mine employees and the communities.

The Porco operation has dealt and continues to deal with both mining cooperatives and illegal miners, particularly those working in and around the Santacruz operation. Some of these cooperatives are legitimate entities under agreement with Santacruz to exploit the near surface areas of the Porco deposit. Therefor cooperatives share mine access with Santacruz workers. From 2013, it was agreed that Contrato de Asociación Sociedad Minera Illapa S.A. would exploit the levels lower than levels 4,213 and 4,225, in the central area and Hundimiento zone, respectively. However, members of the cooperatives regularly violate the agreement and access active Santacruz areas, which at times can endanger the safety of Santacruz personnel and infrastructure.

Much effort has been spent to successfully control this risk, with agreements put in place with large cooperatives to purchase their mineral. However, the influx of illegal miners who are less likely to negotiate is a constant risk to safe and productive operations.

1.12.4.1 Porco

Porco is a completely self-contained industrial center which supports the two main processes of mineral exploitation and concentration. There also exist on site, management, maintenance, transportation and sales support. Porco has been a mining area since colonial times, and mining is its main source of income. It is inhabited by civilians with outside sources of income, cooperative miners, and Santacruz workers with their families. The company works closely with the local populations, the most important being Porco and Agua de Castilla, as well as other smaller, satellite communities. Two cooperatives also work at, and adjacent to, Santacruz operations.

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**Figure 1-9: Porco Surrounding Communities**

![](ex99-30_010.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

**Figure 1-10: Porco Community Investment**

![](ex99-30_011.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

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1.12.5 Mine
 Closure

Closure Planning for Operations has social, economic, workforce, and environmental impacts, so conceptual closure plans are shared with communities. Santacruz's goal is to recover areas by establishing a healthy ecosystem capable of sustaining productive land use, ensuring the best possible environmental conditions, including physical, chemical, biological, and ecosystem aspects, at closure. Environmental superintendents are responsible for monitoring the environmental closure planning, and periodic reviews of these plans are conducted, including surveys of areas and activities to adjust financial provisions for closure.

Land Use and Rehabilitation - environmental challenges related to biodiversity protection, soil restoration, and land use, are addressed through dialogue with stakeholders, including local communities and relevant authorities. Our comprehensive environmental management focuses on minimizing disturbed areas. In 2022, Santacruz managed a total of 6,600 hectares of land covered by Temporary Special Authorizations (ATEs) granted by the Mining Administrative Jurisdiction Authority (AJAM), under leasing contracts with the Government through COMIBOL. However, Santacruz's processing activities, services, and related infrastructure (industrial area) currently occupy only 400.5 hectares of land, including areas of previous mining operations and other areas with environmental closure located within the properties Santacruz manage.

In 2022, Santacruz continued with the reforestation plan in the Queaqueani Dam area, in accordance with an agreement with the community of the same name, and significant progress was made in the progressive closure of the old tailings facilities at the Don Diego Concentrator Plant.

1.13 Capital
 and Operating Cost Estimates

1.13.1 Capital
 Costs

The Porco Mine has been in continuous operation for many years. There will be, as the reserve is expanded and developed, the need for step changes in mine access, production or haulage methods, that may require large capital outlays. These will be financially justified as needed. However, the capital needs for continued operation to exploit the remaining reserves is limited to Primary mine development, Capital equipment rebuilds and replacements, and Tailing Storage Facility expansions. Average annual capital has been and is projected to be in the 4 to 5 million USD range. The historic total capital requirement for all the Bolivian operations is shown in Table 1-7. Porco's projected capital requirements for 2023 to 2027 is shown on Table 1-8.

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**Table 1-7: Actual Combined Capital Requirement for All Bolivian Operations, 2017 to 2022 ($M)**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **2017** | **2018** | **2019** | **2020** | **2021** | **2022** |
| Bolivar | 8.8 | 13.7 | 13.7 | 6.3 | 11.3 | 10.2 |
| **Porco** | **3.0** | **8.8** | **8.4** | **3.6** | **5.3** | **3.1** |
| Reserva | 1.3 | 2.4 | 2.1 | 2.0 | 4.3 | 3.5 |

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|:---|:---|:---|:---|:---|:---|:---|
| | **2017** | **2018** | **2019** | **2020** | **2021** | **2022** |
| Tres Amigos | 2.1 | 2.6 | 1.5 | 1.8 | 2.2 | 3 |
| Don Diego | 0.9 | 6.9 | 1.4 | 0.9 | 1.1 | 1.2 |
| Colquechaquita | 1.2 | 2 | 1.4 | 1 | 3 | 2.5 |
| La Paz | 3.3 | 0.6 | 0.3 | 0.4 | 0.2 | 0.7 |
| Soracaya | 0.5 | 2.1 | 0.2 | 0.1 |  |  |
| San Lucas | 0.8 | 0 | 0 | 0.1 | 0.4 |  |
| **Total** | **21.8** | **39.0** | **28.5** | **16.3** | **27.8** | **24.3** |

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**Table 1-8: Projected Capital Requirement for Porco Operations, 2023 to 2027 ($M)**

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|:---|:---|:---|:---|:---|:---|
| | **2023** | **2024** | **2025** | **2026** | **2027** |
| Engineering/Admin |  |  | 0.1 | 0.0 |  |
| Safety/Environmental |  |  | 0.2 | 2.0 |  |
| Mobile Equipment/Maintenance |  |  | 0.9 | 1.8 | 1.2 |
| Plant | 0.3 | 0.5 | 0.3 | 0.3 | 0.2 |
| Exploration |  | 0.0 | 0.4 | 0.2 | 0.2 |
| Primary Development |  |  | 1.4 | 1.7 | 2.4 |
| **Total** |  | **2.9** | **6.4** | **4.1** | **2.5** |

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Recurring exploration and primary development costs have been included in the COG calculations to better anticipate and account for total costs and make the COG more meaningful for reserve estimation and mine planning.

1.13.2 Operating
 Costs

Costs used for Cut-off grade analysis were taken from actual costs for 2022. The actual cost of corporate G&A was allocated to each of the businesses.

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**Table 1-9: Unit Operating Costs ($/t)**

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|:---|:---|
| **Mine** | **94.68** |
| Mine Operations | 16.06 |
| Mine Maintenance | 58.85 |
| Indirect | 19.78 |
| Plant | 15.04 |
| Warehouse | 1.94 |
| G&A | 13.36 |
| **Total** | **125.02** |

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Source: Santacruz (2023)

Mine operations include direct costs of mining, including labor, energy, materials, and services.

Mine Equipment Maintenance Costs includes maintenance to all equipment related to direct development, exploitation and haulage, as well as service equipment such as pumping, ventilation, winches, etc.

Indirect costs would include Site Management, Technical services, Site Administration, Environmental and Social, Safety and Security.

Plant costs include direct Beneficiation costs as well as plant maintenance, and indirect costs. Warehouse costs refer to Concentrate handling and storage.

General and Administration includes allocated Bolivian corporate costs.

1.14 Economic
 Analysis

1.14.1 Result

The Reserve Estimate was generated using actual costs experienced during a stable production period following the change in management after the purchase of the mine by Santacruz Silver (2022 and beginning of 2023). Actual costs were used for mine operating, concentrate overland transport, port costs, and shipping as well as smelting fees, payment terms, and penalty charges. A simplified Cash flow model was built to model the costs and conditions used to generate the Reserve estimates stated in this report.

The Porco Mine is part of a multi-operation business. However, the Economic model treats it as a separate financial entity with Bolivian corporate costs allocated for the analysis. As well, the operation is subject to a partnership with the Bolivian Government (COMIBOL), but the financial modelling examines the value of the operation on a 100% basis to support the Reserve statement.

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The Porco Mine has been in continuous operation for over 500 years and the deposit is a network of relatively narrow veins. These two aspects drive the normal exploitation process of the mine, where inferred resources are converted and exploited in the same budget year. Resources are generally proven-up by drifting and sampling instead of drilling. Therefor normal budgeting and mine planning includes resources outside of the Reserve estimate.

For the current exercise in this report, only Proven and Probable reserves are included in financial evaluation, so the production schedule represents the depletion of these reserves at average grade and current production rates. The context of the production schedule exploits the Proven and Probable reserves as part of a continuous operation and as such does not include the closure activities.

**Table 1-10: Production Forecast – Mining and Processing**

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| | | | |
|:---|:---|:---|:---|
| | **Unit** | **2023** | **2024** |
| **Mine Production** | **Mine Production** | **Mine Production** | **Mine Production** |
| Tonnes Mined | (DMT) | 197400 | 121772 |
| Tonnes Processed | (DMT) | 197400 | 121772 |
| **Head Grades** | **Head Grades** | **Head Grades** | **Head Grades** |
| Zinc | (%) | 12.71 | 12.71 |
| Lead | (%) | 0.72 | 0.72 |
| Silver | gr/t | 162 | 162 |

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Metallurgical recoveries and concentrate qualities are actual for the times and head grades that were actually mined. These parameters will necessarily be conservative considering the higher grades in the production schedule.

**Table 1-11: Production Forecast - Concentrate**

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|:---|:---|:---|:---|
| | **Unit** | **2023** | **2024** |
| **Concentrates** | **Concentrates** | **Concentrates** | **Concentrates** |
| Zinc | (DMT) | 46279 | 28548 |
| Zn Conc. Grade | (%) | 51 | 51 |
| Ag (in Zinc) | gr/t | 266 | 266 |
| Zn Recovery | (%) | 94 | 94 |
| Ag (in Zinc) | (%) | 38 | 38 |
| Lead | (DMT) | 1984 | 2444 |
| Pb Conc. Grade | (%) | 54 | 27 |
| Ag (in lead) | gr/t | 8069 | 4049 |

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|:---|:---|:---|:---|
| | **Unit** | **2023** | **2024** |
| Pb Recovery | (%) | 76 | 76 |
| Ag (in Lead) | (%) | 50 | 50 |
| **Metal Recovery** | **Metal Recovery** | **Metal Recovery** | **Metal Recovery** |
| Zinc | (FMT) | 24000 | 15000 |
| Silver (in Zinc) | (FOT) | 395000 | 244000 |
| Lead | (FMT) | 1000 | 1000 |
| Silver (in Lead) | (FOT) | 515000 | 318000 |
| Silver (Total) | (FOT) | 910000 | 562000 |

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Notes:

FMT = Fine Metric Tonnes; DMT = Dry Metric Tonnes; FOT = Fine Ounces Troy

That same logic follows to the net revenue generation (Table 1-12) which includes smelter charges and penalty fees.

**Table 1-12: Revenue and Cost Projection ($M)**

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|:---|:---|:---|:---|
| | **Unit** | **2023** | **2024** |
| **Payable Metal Revenue** | **Payable Metal Revenue** | **Payable Metal Revenue** | **Payable Metal Revenue** |
| Zinc |  | 60 | 37 |
| Metallurgical Deduction |  | 9 | 6 |
| Gross Payable Zinc |  | 50 | 31 |
| Lead |  | 2 | 1 |
| Metallurgical Deduction |  | 0 | 0 |
| Gross Payable Lead |  | 2 | 1 |
| Silver |  | 19 | 12 |
| Metallurgical Deduction in Zinc |  | 5 | 4 |
| Metallurgical Deduction in Lead |  | 1 | 0 |
| Gross Payable Silver |  | 14 | 8 |
| Gross Revenue (Total) |  | 67 | 40 |
| **Smelter Charges and Penalties** | **Smelter Charges and Penalties** | **Smelter Charges and Penalties** | **Smelter Charges and Penalties** |
| Treatment charges Zn | (USD/t) | 230 | 277 |
| Treatment charges Zn |  | 11 | 8 |
| Treatment charges Pb | (USD/t) | 130 | 133 |
| Treatment charges Pb |  | 0 | 0 |
| Penalties in Zn | (USD/t) | 3 | 7 |
| Penalties in Zn |  | 0 | 0 |

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|:---|:---|:---|:---|
| | **Unit** | **2023** | **2024** |
| Penalties in Lead | (USD/t) | 0 | 13 |
| Penalties in Lead |  | 0 | 0 |
| Refining Charges in Pb | (USD/FOZ) | 1 | 1 |
| Refining Charges in Pb |  | 1 | 0 |
| Smelter Fees and Penalties |  | 12 | 9 |
| Net Revenue |  | 55 | 31 |
| **Operating Costs** | **Operating Costs** | **Operating Costs** | **Operating Costs** |
| Production Costs |  | 22 | 14 |
| Cost of Sales |  |  |  |
| Rail Freight Zn |  |  | 3 |
| Rail Freight Pb |  |  | 0 |
| Port Expenses Zn |  | 2 | 1 |
| Port Expenses Pb |  |  | 0 |
| Rollback Fee Zn |  | 4 | 2 |
| Rollback Fee Pb |  | 0 | 0 |
| Concentrate Freight and Port Costs | Concentrate Freight and Port Costs | 7 | 7 |
| Mine Royalty |  | 4 | 3 |
| Communities and Unions |  | 1 | 2 |
| **Total Cost of Sales** |  | **34** | **25** |

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Depreciation is a product of previous operation and annual capital expenditure incurred for the exploitation of the reserve tonnage. Capital is limited to that required to support mining, processing, and tailing storage for the reserve. Corporate G&A is that part of the in-country costs allocated to the Porco mine.

**Table 1-13: Cashflow Projection ($M)**

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|:---|:---|:---|
| | **2023** | **2024** |
| **Income Statement** | **Income Statement** | **Income Statement** |
| Net Revenue | 55 | 31 |
| Production Costs | (22) | (14) |
| Selling Costs | (12) | (12) |
| Depreciation | (2) | (3) |
| **Gross Profit** | 20 | 3 |
| Corporate G&A | (2) | (1) |
| Corporate Administrative Expenses | (2) | (1) |

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| | | |
|:---|:---|:---|
| | **2023** | **2024** |
| **Operating Profit** | 18 | 2 |
| **EBIT** | 18 | 2 |
| Income Tax Expense (CIT) | (6.6) | (0.7) |
| **Net Gain/(Loss) for the Year** | 11 | 1 |
| **Cashflow Statement** | **Cashflow Statement** | **Cashflow Statement** |
| **Cash from Operations Activities** |  |  |
| Net Income | 11 | 1 |
| Depreciation | 2 | 3 |
| **Subtotal** | 13 | 4 |
| **Cash from Investing Activities** |  |  |
| Sustaining Capital Expenditure | (2) | - |
| **Subtotal** | (2) | - |
| **Cash Balance** |  |  |
| Beginning | - | 10 |
| Change in Cash | 10 | 4 |
| **Ending** | **10** | **14** |

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Income Tax is 37.5% of the EBIT. As seen, the operations generate a positive cash flow after tax upon exploitation of the stated reserve at the metal prices used to generate the reserve.

1.14.2 Sensitivities

A univariate sensitivity analysis was performed to examine which factors most affect the Project economics when acting independently of all other cost and revenue factors. Each variable evaluated was tested using the same percentage range of variation, from -20% to +20%, although some variables may experience significantly larger or smaller percentage fluctuations over the LOM. For instance, the metal prices were evaluated at a ±20% range to the base case, while the capex and all other variables remained constant. This may not be truly representative of market scenarios, as metal prices may not fluctuate in a similar trend. The variables examined in this analysis are those commonly considered in similar studies – their selection for examination does not reflect any particular uncertainty.

Notwithstanding the above noted limitations to the sensitivity analysis, which are common to studies of this sort, the analysis revealed that the Project is most sensitive to metal pricing. The Project showed the least sensitivity to capital costs. Figure 1-11 shows the results of the sensitivity analysis.

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Figure 1-11: Univariate Sensitivities

![](ex99-30_012.jpg)

1.15 Observations,
 Risks, Opportunities and Recommendations

1.15.1 Observations

The Porco Mine Project consists of two separate mining zones that essentially function as separate mines, the Hundimiento and Central, that feed ore to a single processing plant on site to produce zinc and lead concentrates. Sinchi Wayra S.A. owns and operates all facets of the Porco business, which is in turn owned by Santacruz.

The QPs found that Porco is a well-managed operation that should be capable of sustaining profitable operations for many years to come in the same fashion as it has operated for the past several years.

The reserves were found to be estimated correctly using industry-standard techniques and procedures and industry-standard software by diligent and competent professionals.

The mine has an ample provision of skilled workers. Typical and reasonable ore control systems were in place, but it is possible that the results could be improved with a closer attention to appropriate mining widths, minimizing them wherever possible to minimize dilution.

The single greatest challenge to the operation is the incessant trespassing of illegal miners into the active mining operations. This results in damage of mine equipment (often disrupting the ventilation system), disruption to scheduling, loss of revenue, and poses a real threat to the safety of the workers. How this situation can be ameliorated or prevented is beyond the scope of this document and the cultural awareness of the authors. However, it should be noted that this situation is ongoing and, as such, all production and economic results contained in this report are inclusive of this threat and impediment.

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This threat also forces the mine to minimize its resources and reserves. Both require development for expansion, and while a typical mine provides adequate development ahead of production. A typical mine provides adequate development ahead of production for ore definition and proper scheduling. However, the Porco Mine minimizes open development to provide less opportunity for the illegal miners to access and illegally extract its ore. As a result, the operation runs very "hand to mouth" with respect to both access development and resources / reserves. This is demonstrated by the forward planning; 37% of the 2023 schedule was based on inferred resources.

It is difficult to estimate the ability of the mining fleet to execute the mine plan, as industry- standard availability and utilization factors are not tracked by unit or even unit type.

The processing facility at the Porco Mine appears to be well run and in good condition.

1.15.2 Risks

The following Risks were identified for the Project:

● Geological interpretations may be subjective and may result in the location and extent of some of the mineralized structure although as the Porco mine is comprised of well constrained veins, this risk is minimal;

● As vein thicknesses are narrow, resources may be sensitive to dilution although the relative high grades that exist at the Porco mine are successful mitigating such risks to date;

● Varying resource classification methods and criteria may vary as more data is considered;

● There is no guarantee that further drilling will result in additional resources or increased classification;

● Lower commodity prices will change size and grade of the potential targets;

● Further work may disprove previous models and therefore result in condemnation of targets and potential negative economic outcomes;

● The single greatest risk to the Project is the activity that is prevalent throughout the region related to Cooperativas and artisanal miners may cause issues for access and for reasonable prospects of eventual economic extraction and may condemn or reduce resources and reserves in those areas and can drastically impact mine planning and scheduling;

● The current political and socio-economic climate in Bolivia poses risks and uncertainties that could delay or even stop development as reported within the Fraser Institute Annual Report 2022 where Bolivia ranks very low in many non-technical metrics. Bolivia has been ranked consistently low for the past five years and ranks in the lower quartile on all metrics that gauge risk and uncertainty. It is difficult to gauge or qualify the level or extents of the risks however, all companies working in Bolivia must continue to be aware of the potential risks and develop mitigation strategies. A significant risk related to the Santacruz Bolivian mineral assets and in particular the mineral resources and mineral reserves is the significant artisanal activity that continues to exist. This activity is not only a socio-economic risk but also affects access to resources and reserves along with potential sterilization of mineral resources;

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● Lower commodity pricing will change the size and grade of potential targets;

● Ability to replace mined reserves on an annual basis; and

● Maintenance of permitting.

As the mines continues to expand to depth, the following aspects of mine operations will be challenged:

● Worker travel time (reduced time at the face);

● Dewatering inflow quantities, infrastructure and costs; and

● Ventilation system needs and costs.

As the ore is conveyed by shaft for both mines, and most of the remaining reserve at depth, this could be very impactful on future operations. The shaft will ultimately require extension to depth or trackless equipment will be required to haul the ore to the shaft bottom.

1.15.3 Opportunities

Project opportunities include:

● A systematic exploration program could provide an excellent opportunity for successfully uncovering new discoveries;

● An increased understanding and derivation of alternative theories may result in further discovery and expansion for the Project;

● A hydrogeological study could help the operation to better characterize and understand water inflows, aiding design work and planning to reduce the impact of major seasonal inflows;

● Higher commodity prices will change size and grade of the potential targets; and

● Potential for expansion and classification upgrade of resources as mining activities progress.

The primary opportunity to the mine is to somehow contain or eliminate the illegal miner situation. This would allow for more predictable scheduling and operations, the ability to expand the resources and reserves, reduce operating costs, and improve the safety of all personnel.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 1-31

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The grade to the mill could be improved the grade to the mill by incorporating a mine dilution control program. As is typical with all narrow width mining, dilution is very sensitive to the mined widths of veins, which must be kept at minimum to accommodate equipment widths. Often, however, veins are over-mined to ensure complete recovery of the ore. This practice significantly increases dilution due to overbreak of the hangingwall and footwall.

1.15.4 Recommendations

To advance the Porco Mine and further evaluate the potential additional veins and increase resources thereby displacing depletion due to ongoing mining activities, the following is recommended:

● Regional exploration for identification of new veins;

● Incorporate structural interpretations to assist regional understanding;

● Analysis of thickness and grade-thickness profiles for resource targeting and predictive dilution study;

● Investigate geo-metallurgical characteristics; and

● Hydrogeological study and modelling should be done to better understand water inflows and minimize their impact on production.

Some surface or near surface targets along with underground drilling for resource delineation and extension. As is typical with all narrow width mining, dilution is very sensitive to the mined widths of veins. Often veins are over-mined to ensure complete recovery, but this practice comes with significantly increased dilution due to overbreak of the hangingwall and footwall. The operation should conduct a thorough test stoping experiment to ensure the most economic balance between incomplete recovery and excessive dilution.

Availability and utilization factors should be tracked, calculated, and reported for all mining equipment. This information should be used as a management tool to determine which units should be rebuilt or replaced and to avoid or minimize usage of the units with the highest operating costs.

The activities of both Cooperativas and illegal miners must continue to be monitored and action taken to understand and, to whatever extent is possible, control their activities to mitigate safety concerns for the workers reduction to the resources and/or reserves, to avoid disruption of the mine plan.

These recommendations have not been costed, as they represent changes to current practices that can be funded by existing operating budgets.

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2 INTRODUCTION

2.1 Terms
 of Reference

JDS Energy & Mining Inc. (JDS) was commissioned by Santacruz Silver Mining Ltd. (Santacruz) to prepare a Technical Report in accordance with the Canadian Securities Administrators' National Instrument 43-101 and Form 43-101F1, collectively referred to as National Instrument (NI) 43-101 for the Porco Project (Porco or the Project) located is located in the Porco Municipality of the Antonio Quijarro Province, Bolivia.

Santacruz is based in Vancouver, British Columbia and is engaged in the operation, acquisition, exploration and development of mineral properties in Latin America, with a primary focus on silver and zinc. Santacruz was incorporated on January 24, 2011 under the laws of British Columbia and is listed on the TSX Venture Exchange under the trading symbol "SCZ".

On October 11, 2021, Santacruz entered into the Definitive Agreement with Glencore whereby Santacruz agreed to acquire a portfolio of Bolivian silver assets from Glencore, including the following: (a) a 45% interest in the Bolivar Mine and the Porco Mine, held through an unincorporated joint venture between Glencore's wholly-owned subsidiary Contrato de Asociación Sociedad Minera Illapa S.A. (Illapa) and COMIBOL, a Bolivian state-owned entity; (b) a 100% interest in the Sinchi Wayra S.A. (Sinchi Wayra) business, which includes the producing Caballo Blanco mining complex; (c) the Soracaya exploration project; and (d) the San Lucas ore sourcing and trading business.

On March 18, 2022, Santacruz completed this purchase, including Glencore's interest in the Porco Mine.

Santacruz thus owns 100% of the two Bolivian operating companies Illapa and Sinchi Wayra, which in turn own 45% of the Bolivar Mine, 45% of the Proco Mine, and 100% of the Caballo Blanco mining complex.

Sinchi Wayra is the operating company for all three active mining operations, including the Porco mine.

This report is the first declaration of resources and reserves, for the Porco base metals underground mining operation since its acquisition by Santacruz. The mine is fully operational at the time of this report's preparation. The effective date of both the resource and the reserve is January 1, 2023, which is approximately 18 months before the report date. Production data for the calendar year 2023 has been included in Section 24 Other Relevant Data and information to show the depletion and typical replenishment of resources and reserves over a calendar year.

2.2 Qualified
 Persons

The Qualified Persons (QPs) preparing this report are specialists in the fields of geology, exploration, mineral resource estimation, metallurgy and mining.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 2-1

None of the QPs or any associates employed in the preparation of this report has any beneficial interest in Santacruz and neither are any insiders, associates, or affiliates. The results of this report are not dependent upon any prior agreements concerning the conclusions to be reached, nor are there any undisclosed understandings concerning any future business dealings between Santacruz and the QPs. The QPs are being paid a fee for their work in accordance with normal professional consulting practice.

The following individuals, by virtue of their education, experience and professional association, are considered QPs as defined in the NI 43-101, and are members in good standing of appropriate professional institutions / associations. The QPs are responsible for the specific report sections as listed in Table 2-1.

**Table 2-1: QP Responsibilities**

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| | | | |
|:---|:---|:---|:---|
| **Qualified Person** | **Company** | **QP Responsibility / Role** | **Report Section(s)** |
| <br> Richard Goodwin, P.Eng. | <br> JDS | Author, Mining, Project Manager | 1.1 to 1.2, 1.8 to 1.9, 1.11 to<br> 1.15, 2 to 6.1, 12.1, 12.3,<br> 12.5, 15, 16, 18 to 26, 28 |
| <br> Garth Kirkham, P.Geo. | Kirkham Geosystems Inc. | Geology, QA/QC, Data Verification, Drilling, Resource Estimate | 1.3 to 1.5, 1.7, 6.2, 7 to 11,<br> 12.2, 9, 10, 11, 12.1, 12.2,<br> 14, 27 |
| Tad Crowie, P.Eng. | JDS | Metallurgy | 1.6, 1.10, 12.4, 13, 17 |

---

2.3 Site
 Visit

In accordance with National Instrument 43-101 guidelines, site visits are summarized in Table 2-2. Sinchi Wayra staff and management were cooperative and helpful during the course of each visit. Access to all requested information and physical sites was provided voluntarily.

**Table 2-2: QP Site Visits**

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| | | | |
|:---|:---|:---|:---|
| **Qualified Person** | **Company** | **Date** | **Description of Inspection** |
| <br> Richard Goodwin, P.Eng. | JDS | January 28 to 30,<br> 2023 | Mr. Goodwin met with technical and operating staff and toured the Central Zone and processing plant. |
| Garth Kirkham, P.Geo. | <br> Kirkham Geosystems Inc. | August 10-13,<br> 2021<br> March 15-30,<br> 2023 | Porco Mine and Project site; including select working areas and faces underground, Potosi professional offices, Don Diego Mill Complex, sample storage facilities, La Paz company offices, discussions with site and company personnel. |

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| | | | |
|:---|:---|:---|:---|
| **Qualified Person** | **Company** | **Date** | **Description of Inspection** |
| Tad Crowie, P. Eng. | <br> JDS | August 10-13,<br> 2021 | Porco Mine and Project site; including select working areas and faces underground, Potosi professional offices, Don Diego Mill Complex, sample storage facilities, La Paz company offices, discussions with site and company personnel. |

---

2.4 List
 Of Previous Relevant Technical Reports

There has been one technical report published which was the subject of the Porco Project entitled "NI43-101 Technical Report, Porco Project, Potosi, Bolivia" dated December 21, 2021. This report was produced by JDS on behalf of Santacruz and authored by Kirkham and Crowie who are also QP's for this Technical Report.

2.5 Units,
 Currency and Rounding

The units of measure used in this report are as per the International System of Units (SI) or metric, except for Imperial units that are commonly used in industry (e.g., ounces (oz.) and pounds (lb.) for the mass of precious and base metals).

All dollar figures quoted in this report refer to United States dollars (US$ or $) unless otherwise noted.

Frequently used abbreviations and acronyms can be found in Section 28. This report includes technical information that required subsequent calculations to derive subtotals, totals and weighted averages. Such calculations inherently involve a degree of rounding and consequently introduce a margin of error. Where these occur, the QPs do not consider them to be material.

This report may include technical information that requires subsequent calculations to derive sub- totals, totals and weighted averages. Such calculations inherently involve a degree of rounding and consequently introduce a margin of error. Where these occur, JDS does not consider them to be material.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 2-3

3 RELIANCE ON OTHER EXPERTS

The QP's have relied on information provided by the Issuer on claims, ownership, property agreements, royalties, environmental liabilities, and permits as described in Section 4. The information appears reasonable but has not independently verified beyond the information that is publicly available.

The QPs have relied upon a legal opinion provided by Enrique Barrios of the firm Dentons Guevara & Gutierrez S.C., located in La Paz, Bolivia, in the documents "Local Counsel Legal Opinion on the Porco Mine", "Local Counsel Legal Opinion on the Caballo Blanco Project", "Local Counsel Legal Opinion on Empresa Minera San Lucas S.A.", "Local Counsel Legal Opinion on Sociedad Minero Metalúrgica Reserva Ltda.", "Local Counsel Legal Opinion on Sociedad Minera Illapa S.A.", "Local Counsel Legal Opinion on Sinchi Wayra S.A.", and "Local Counsel Legal Opinion on the Illapa Joint Venture", all dated March 18, 2022 with regards to the Property's location, title, and environmental licenses described in Section 4 of this report.

The QPs have relied on information provided by Arturo Prestamo of Santacruz for the information contained in Section 20 and for the smelter agreements used for the determination of the resources, reserves, and economic model.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 3-1

4 PROPERTY DESCRIPTION AND LOCATION

4.1 Location

The Porco Mine and Plant is located in the Porco Municipality of the Antonio Quijarro Province, in the Potosí Department, Bolivia. UTM W-84 Coordinates: 7806780E; 188096N at an elevation of 4,174 masl. Figure 4-1).

**Figure 4-1: Project Location Map**

![](ex99-30_013.jpg)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 4-1

4.2 Property
 Description and Tenure

The Porco Mine is owned by the Bolivian Government (COMIBOL) with exclusive mining rights held pursuant to an unincorporated joint venture (the "**Illapa JV**") between private owner operator Contrato de Asociación Sociedad Minera Illapa S.A. (Illapa). Pursuant to the Illapa JV, Illapa holds a 45% interest in the Porco Project, and the Bolivian Government (COMIBOL) which holds a 55% interest in the Porco Project.

Illapa itself owns no mineral tenements in this district (Table 4-1 and Figure 4-2).

The Porco Mine produces Zinc/Silver and Lead/Silver concentrates. The complex consists of an underground mine, concentrator plant, maintenance workshop, tailing storage facility, water treatment plant, supplies warehouse, main office, two hospitals and Yancaviri Camp as shown in Figure 4-3.

Off-take Agreements with Glencore International are in place for the Porco Mine production: Contract No. 180-03-10309-P and Contract No. 062-03-10276-P, including all its addendums and amendments. These Off-Take Agreements are in effect through the life of the mine.

On March 18, 2022 Santacruz acquired 100% of the shares of Illapa, as more particularly described in Section 2. There was a 1.5% NSR royalty to Glencore, provided as part of the purchase price that Santacruz paid pursuant to the Definitive Agreement, however on March 28, 2024, Santacruz and Glencore entered into a binding term sheet (the Term Sheet) which, among other terms, extinguished the 1.5% NSR royalty to Glencore. The only known existing agreements that will bind Santacruz is that of the Illapa JV. Environmental liabilities observed consist mostly of historic tailing storage facilities and mine workings. Recent audits verify environmental legal compliance and associated closure plan costing.

**Table 4-1: Mineral Tenements (Sinchi Wayra contribution)**

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| | |
|:---|:---|
| **Area** | **Ates** |
| Porco Mining Project (Ca – Mbp)<br> First Group (Purple) Hectáreas: 344 | La Esperanza, Socorro Del Pobre, Minerva, Santa Elena, Carmen, Iruputungo, Caccha, Hundimiento, Wally, La Rica, Soledad, San José, Esperanza Candelaria y Veneros Jalantaña |
| Porco Mining Project (Ca – Mbp)<br> Second Group (Red) Hectáreas: 149 | Electra, Paracaidas, Demasias Papicito, Sucesivas Primera Mamacita, Papicito, Mamicita Sucesivas Segunda Papicito y Sucesivas Primera Papicito |
| Individual Contract (Green) Hectáreas: 40 | <br> Precaución |

---

Source: Glencore (2021)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 4-2

**Figure 4-2: Mineral Tenement Locations**![](ex99-30_014.jpg)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 4-3

**Figure 4-3: Porco Mine Site** 

4.3 Environmental,
 Permitting and Social Relations

Santacruz Silver continues to manage its operations using a sophisticated management approach to sustainability consistent international standards. From the 2022 Sustainability Report:

We are: "A leading Business Group in the mining industry in Bolivia, sustainable, committed to the safety, health, and well-being of our Human Capital, and the preservation of the environment, with an entrepreneurial spirit, openness to change and innovation, and we strive to generate value and positive impact for society as a whole."

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This integrative approach is evident in the Porco operation. Areas addressed and monitored include:

● Employees;

● Occupational Health & Safety;

● Governance and Compliance;

● Stakeholder Engagement;

● Contributing to Community;

● Environment; and

● Product Stewardship & Material Handling.

4.3.1 Regulatory
 Framework

Bolivia's central statute governing environment protection is Law 1333, of 27 April 1992; specific regulations for which are set out in Regulation of Environmental Prevention and Control, December 8, 1995. Special Decree No. 24782 of 31 July 1997 sets out specific environmental requirements related to mining. Breaching environmental obligations can result in criminal liability under the Bolivian Constitution, in addition to other administrative penalties (such as a loss of mining rights).

An Environmental Impact Assessment (EIA) would be required for a project the scale of a mining and processing operation. As well, public consultation with any potentially affected indigenous communities and local populations may also be necessary. Granting of the operating permit allows the proponent to obtain the appropriate operating licenses, which must be updated with any relevant changes during the life of the operation.

Specialized environmental authorities control compliance. As required under the license, any impact on the environment must be reported to these authorities. Remediation measures and rehabilitation projects are compulsory, and financial reserve funds are maintained annually to cover closure costs. A final closing study on the effect on the environment will also be required, and restitution met.

On February 25, 2014, a Declaration of Environmental Adequacy Certificate was issued by the Ministry of Environment and Water addressing the proper license updating procedure carried out by Sinchi Wayra S.A. during the transfer of the Porco Mine to Contrato de Asociación Sociedad Minera Illapa S.A. In the same manner, the updating of the Porco Mine License, was addressed and approved by the Ministry of Environment and Water, on February 21, 2014, in the transfer procedure from Sinchi Wayra to Illapa.

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Illapa was granted the Mining Identification Number 02-0697-04, by the SENARECOM (National Service of Control and Registration of Minerals and Metals Commercialization, for its acronym in Spanish), which expires on September 25, 2022:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Porco:
 Sinchi Wayra transferred the Porco Mine and plant, which was recognized in the Declaration
 of Environmental Adequacy (DAA) N.° 051203-02-DAA-0031/10 dated February 21, 2014. The
 DAA has the character of an environmental license. Last updated April 4, 2017; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The
 General Direction of War Logistics and Material issued a Registration Certificate under number
 0668/2019, for the use of explosives and accessories in mining activities. Expiring date:
 August 26, 2023.

Contrato de Asociación Sociedad Minera Illapa SA, in compliance with the internal policy of caring for the health and wellbeing of its employees and mine resources, is implementing an Integrated Management System based on the ISO 14001 standard and the ISO 45001 Risk Prevention standard with the precepts of mitigating risks and improving business performance through a safer work environment and a healthier workforce.

In compliance with D.L. 16998 of Hygiene, Occupational Safety and Well-being, directives of the Industrial Safety and Occupational Health regulations are met with programs such as: unplanned and planned workplace Inspections, keeping company standards current, Occupational Health Monitoring (dust, noise, gases, heat stress, vibrations), meetings of the Joint Safety Committee, five-minute talks before the start of daily work, personal protective equipment, breathalyzer control, induction and training of personnel with safety issues, and Investigation of accidents.

New employees are trained on topics including workplace safety procedures, safe work environment, relations with communities, safety standards, and the use of the integrated management system for Occupational Health and Safety of Contrato de Asociación Sociedad Minera Illapa SA.

4.3.2 Health,
 Safety and Economic Development

As per the Santacruz Sustainability program:

● Employees - Establishing relationships based on trust and promoting a culture of prevention and safe environments. Quality employment opportunities are offered with non- discriminatory hiring. In 2022, Bolívar employed total of 370 employees and 314 contractors, 7% of whom were women. Given the labor benefits offered, Bolívar has a low turnover rate. 71% of employees at Bolívar are unionized. Santacruz guarantees freedom of association and the right to collective bargaining;

● Occupational Health & Safety - Realizing the inherent personal risks of mining, and the incremental increase in incident rates over the last three years, emphasis continued in 2022 in program development and training in proper work practices at Bolívar;

● Health - Medical care is provided to employees through third party health insurers at Santa Rita Hospital. Regular Occupational Health examinations are given to all workers and treatment provided when prescribed. In 2022, occupational health factors at Bolívar, continue to be monitored after baseline date indicated most parameters fell within acceptable limits;

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● Community - The neighboring communities house workers, contractors, and their families. Most of them reside in Antequera, which lies adjacent to the mine. In 2022, USD 660,000 was invested in the development of neighboring communities, benefitting approximately 1,900 families;

● Education - One of the schools in Antequera continues to be financed by Santacruz and serves 500 students. The program includes funding of teachers', directors' and supporting personnel's wages, supplies and equipment, payment of services and school infrastructure. 29 scholarships were awarded for study abroad in the capital cities. These programs not only help the local communities, but they provide Porco with trained professionals. Public education is also supported through extracurricular sports and cultural activities;

● Economic Development - Bolívar offers a professional training workshop for women who live in the mining camp and that make up the Housewives' Committee. Fire extinguisher training was provided for 100 people this year and five houses were renovated as well as other help to nearly 100 families in two communities;

● Environment - Reforestation continued throughout the Queaqueani tailings dam area, and a water diversion project in Antequera focused on improving farming performance that benefited 200 people; and

● Local needs - Cultural activities were sponsored including a safety management contest, sponsorship of trips for the Sebastián Pagador graduates, cooking courses for housewives, support for the elderly in purchasing groceries, and the anniversary celebration of Antequera.

4.3.3 Environment

4.3.3.1 Water
 Management

At Porco, the process plant and underground mine work on a closed circuit with zero discharge. Although Illapa has the necessary discharge permit, water recycling is maximized in order to minimize the use of surface fresh water, from the Jalsuri spring. The use of fresh water is reserved for potable use by the campsite and offices, and for preparation of certain reagents at the process plant.

4.3.3.2 Tailings
 Management

The active Tailings Storage Facility (dam "D") began operations on March 3, 1998. Initially designed by AGRA Earth & Environmental Ltda. For the first two phases., and AMEC for the current active expansion. The facility meets current international standards. The impoundment is of downstream construction and the dam lined with 60 mil HDPE. A system of well and piezometers are in place to monitor the facility's performance. Construction of Phase VI begun in 2018 was completed in 2019 and included recommended work to reinforce areas of the foundation.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 4-7

4.3.3.3 Waste
 Management

Porco currently disposes of all waste rock underground; thus, surface management is not required. Process tailing and sludge from the water treatment plant are both stored in the Tailing Storage Facility (dam "D"). Domestic waste is collected by the Porco cleaning company, who is supported by Illapa with equipment and a front-end loader, to move the waste in Porco's sanitary landfill. Hospitals in Agua de Castilla and Porco generate a considerable amount of biological hospital waste, which is classified and carefully stored for subsequent incineration.

4.3.4 Community
 Interaction

The town of Porco has been a mining area since colonial times, and mining is its main source of income. It is inhabited by civilians with various activities, mine workers, their families, and cooperative miners. Illapa works closely with the closest towns, i.e., Porco and Agua de Castilla, as well as the smaller, satellite communities totalling approximately 16,000 people. As well, Illapa engages with two Cooperatives that work at, and adjacent to, the Porco operation.

The Covid Pandemic dominated Community needs and was answered with support from Illapa. However underlying long term aid programs remained intact. COVID-19 prevention supplies were provided such as alcohol gel, liquid alcohol, bleach, masks, and gloves. Informative posters for prevention awareness were also posted. Provisions kits were also supplied, in view of the economic crisis caused by the pandemic.

Support to education was affected by the early conclusion of the school year; however, financial support for teachers' wages and administrative personnel was provided, as well as the adoption of biosecurity measures for the return of in-person classes. This project benefits 1000 students and will continue in 2021.

4.3.4.1 Mining
 Cooperatives

A large part of how the mine operation interacts with nearby communities is related to the Cooperativa system. This system is based on establishing informal agreements with local miners who independently mine in designated areas, and toll mill at the Porco plant. Resources in the upper central zone are made available to the Cooperativas who mine the material and deliver it to the process plant. They are paid based on weight and sample grades. After the material is processed, some reconciliation mechanism is used to adjust the payment based on actual recoveries. This system helps to direct the energies of the informal miners into an opportunity for legitimate production and steady income while also helping to minimize the activity of illegal mining.

However, illegal mining is still being carried out at Porco Mine and was observed on our site visit. Forced access to mining areas through destruction of ventilation brattices and gates causes direct losses, while mining in unauthorized areas causes instability and reduced productivity as well as creating a safety hazard to both the perpetrators and the mine workforce.

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5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

5.1 Accessibility

Porco Mine is located in Bolivia, Potosi Department, Antonio Quijarro province, 50 km southwest of Potosí City. The mine is 150 km via paved National Highway 5 from a commercial airport at Uyuni and 581 km to the capital, La Paz. A 5 km gravel access road to the mine site goes through the communities of Agua de Castilla and Porco (Figure 5-1).

**Figure 5-1: Project Location Map (showing region)**

![](ex99-30_016.jpg)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 5-1

Concentrates are transported 5 km by truck from Porco Concentrator to the Yancaviri Warehouse and rail Station in Agua de Castilla. From there rail takes the concentrate directly to the Pacific port of Antofagosta, Chile.

5.2 Climate
 and Physiography

The climate at site in a semi-arid ecological zone known as the high mountain prairie of Puno; This eco-region occupies the central-east and south slope of the Royal Range in Potosí and Chuquisaca. The deposit's outstanding features are the geological massifs Apo-Porco and Huayna Porco, and the ravines that pass through Jalantaña, Porco and Agua Castilla. Geologically, it is located at the southern end of the Los Frailes Range, within the polymetallic strip of the Eastern Andes.

According to the land use classification system of the USDA Soil Conservation Service (US Department of Agriculture), it has been determined that soil class IV predominates which are, soils with reduced arable layers and little use for agriculture.

Geographically Porco is part of the Cordillera de Azanaques, which in turn is part of the Cordillera Central or Meridional, located on the slopes of Cerro El Salvador (4560 masl). The project is at altitude 4147 masl.

The climate is arid to semi-arid and included in the "Puna" eco-region which extends south of the 18th parallel, from which aridity increases. Precipitation averages 450 mm per year with temperatures ranging from a maximum of 24°C to a minimum of -13°C. The topography of the area is moderately rugged, with mountain ranges cut by the Antequera canyon, through which the Chapana River runs.

The project lies within the Altiplano, an extensive volcanic plateau where regional flora includes dry plants such as queña, or quenua, which is a dwarf tree found at higher elevations. In addition, abundant yareta is present which is a species of moss that grows on the ubiquitous rocky surfaces.

Faura such as llamas and alpaca are the most distinctive animal populations in the area and are mostly domesticated with wild populations being fairly rare. Another similar animal, the vicuna, exists in the region however it is thought to be on the verge of extinction. In the air, condors inhabit the remote caves of the high peaks, flying over the plateaus.

5.3 Infrastructure

The underground mine and process plant are supported by the site infrastructure built up over five centuries of mining activity Figure 5-2.

Electrical power is supplied from the national grid via 69 kV transmission lines from the Landara substation to El Tambo II substation, where voltage is transformed from 69 to 24.9 kV for distribution to the mine site. The site has two separate electrical substations: Mine and Plant, where the voltage is transformed from 24.9 kV to 3.3 kV, 440 V and 220 V.

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Water is sourced mostly from the mine discharge of 35 l/s which is treated for use in the process plant as part of a zero-discharge system. Potable water for the mine and surrounding communities are sourced at the Jalsuri well.

Most of the workers live in the towns of Agua de Castilla and Porco, while the technical personnel live in the Yancaviri camp, there are a total of 35 units built complete with recreation areas, and in both communities, there are health services at Hospitals in both Porco, and Agua de Castilla, as well as supply and grocery markets.

The mine utilizes one modern Tailings Storage Facility and hosts 8 inactive facilities on site as well. All facilities are monitored and audited regularly by a third-party engineering firm Figure 5-2.

**Figure 5-2: Porco Site Infrastructure**

![](ex99-30_017.jpg)

Source: Glencore (2021)

The active Tailings Storage Facility (dam "D") began operations on March 3, 1998. Initially designed by AGRA Earth & Environmental Ltda. For the first two phases., and AMEC for the current active expansion. The facility meets current international standards. The impoundment is of downstream construction and the dam lined with 60 mil HDPE. A system of wells and piezometers are in place to monitor the facility's performance. Construction of Phase VI began in 2018 and included recommended work to reinforce areas of the foundation.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 5-3

Tailings are discharged along the inside face of the dam at 25-29% solids, forming a tailings beach for additional support, and keeping the water away from the dam. The water reclaim system consists of a barge mounted pump system to form a closed loop with the process plant. The site is zero discharge.

**Table 5-1: Tailings Facility "D" Statistics**

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| | |
|:---|:---|
| **Parameters** | **Porco** |
| Crest Elevation | 4.03677 |
| Spillway Elevation | 403577 |
| Tailings Elevation | 4036 |
| Water Elevation | 403465 |
| Life Dam | 6-7 |
| Design Freeboard | 1 |
| Current Freeboard | 135 |
| Design Tailings beach length | 100 |
| Current Tailings beach length | 150 |
| Design Water Volume | 200.000 |
| Current Water Volume | 138.000 |
| Operations Maintenance and Surveillance Manual | M.O. |
| Engineer of Record (EoR) | AMEC/WOOD |

---

Source: Glencore (2021)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 5-4

**Figure 5-3: TSF Audit Summary**

![](ex99-30_018.jpg)

Source: Glencore (2021)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 5-5

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| | |
|:---|:---|
| 6 | HISTORY |

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6.1 Management
 and Ownership

Evidence of silver mining at Porco goes back to pre-Columbian times. Porco was a silver source for the Inca, later the Spanish, and others through the late 19<sup>th</sup> century. As the world silver market began to collapse in the 1880's and early 1890's, a major shift to tin mining began to meet the increased demand of the industrialized world. Wealthy tin barons in Bolivia held much influence in national politics until they were marginalized by the nationalization of the three largest tin mining companies following the 1952 revolution. Bolivian miners played a critical part in the country's organized labor movement from the 1940s to the 1980s and continue to be an important stakeholder.

Porco became a resource of newly formed Bolivian Mining Corporation (COMIBOL), under whose management it operated until leased to private "Iris Mines" through subsidiary Compania Minera del Sur (COMSUR) in 1962. Emergency economic measures by the government in response to the international tin market crash in 1985 included massive layoffs of miners.

Porco Mine operates under the management of Sinchi Wayra S.A. (formerly COMSUR S.A.), under a joint venture agreement with the Bolivian government (COMIBOL) named Illapa S.A. Sinchi Wayra S.A. and (COMIBOL) entered this Joint Venture Agreement (the Illapa JV) on December 4, 2014, by virtue of Public Deed N° 1356/2014. The duration of the Illapa JV is 15 years, with the possibility of extending the term for the same duration. Under the Illapa JV, ownership is 55% COMIBOL and 45% Illapa. In the event of any disagreement, the Illapa JV has an arbitration clause with seat in La Paz, Bolivia, under UNCITRAL Rules.

On October 11, 2021, Santacruz entered into the Definitive Agreement with Glencore whereby Santacruz agreed to acquire a portfolio of Bolivian silver assets from Glencore. The Assets include: (a) Glencore's 45% interest in the Bolivar Mine and the Porco Mine, held through an unincorporated joint venture between Glencore's wholly-owned subsidiary Contrato de Asociación Sociedad Minera Illapa S.A. (Illapa) and COMIBOL, a Bolivian state-owned entity; (b) a 100% interest in the Sinchi Wayra business, which includes the producing Caballo Blanco mining complex; (c) the Soracaya exploration project; and (d) the San Lucas ore sourcing and trading business (the Assets).

On March 18, 2022, Santacruz completed this purchase, including Glencore's interest in the Caballo Blanco mining complex. The Caballo Blanco mining complex has continued to operate since that date under the management of Santacruz.

On May 10, 2023, Santacruz and Glencore entered into a framework agreement to amend certain terms of the transaction documents pertaining to the acquisition of the Assets. On March 28, 2024, Santacruz and Glencore entered into the binding Term Sheet which amends the terms of certain deferred consideration and ancillary documents pertaining to the acquisition of the Assets.

Sale of concentrates are subject to an Off-Take Agreement with Glencore International AG as buyer, under Contract N°180-13-14212-P, and Contract N°062-13-14190-P, both entered into in 2013, with all their addendums and amendments. These agreements are "evergreen" meaning that they are in effect through the life of mine.

SANTACRUZ SILVER MINING LTD. \| PORCO TECHNICAL REPORT PAGE 6-1

**Figure 6-1: Project History**

Source: Glencore (2021)

6.2 Historical
 Resource Estimates

Glencore's Resources & Reserves report as of December 31, 2020 disclosed Porco, Bolivar and Caballo Blanco historic mineral resource statements as well as historic mineral reserve estimates as of December 31, 2020. Given the source of the estimates, Santacruz considers them reliable and relevant for the further development of the Project; and accordingly, they should be relied upon only as a historical resource and reserve estimate of Glencore, which pre-dates Santacruz's agreement to acquire the Assets however, the Company is not treating the historical estimates as current Mineral Resources or Mineral Reserves.

A "Qualified Person" as per NI 43-101 has not done sufficient work to classify the historical estimate as current Mineral Resources or Mineral Reserves and Santacruz is not treating the historical estimate as current Mineral Resources or Mineral Reserves. Further drilling and resource modelling would be required to upgrade or verify these historical estimates as current mineral resources or reserves for the respective assets.

The resources have been reported for Porco as of December 31, 2020 at a Zinc Equivalent (ZnEq) cut-off grade 2% as follows in Table 6-1.

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**Table 6-1: Historic Mineral Resource Estimate**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Category** | **Tonnes**<br>**(Mt)** | **Zinc**<br>**(%)** | **Lead**<br>**(%)** | **Silver**<br>**(g/t)** |
| Measured Mineral Resources | 0.7 | 10.68 | 0.63 | 83 |
| Indicated Mineral Resources | 0.4 | 10.86 | 0.77 | 114 |
| Measured + Indicated Mineral Resources | 1.1 | 10.74 | 0.68 | 93 |
| Inferred Mineral Resources | 2.2 | 11.78 | 0.84 | 98 |

---

Notes:

1) The Mineral Resources have been calculated in accordance with definitions in accordance with the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), the 2016 edition of the South African Code for Reporting of Mineral Resources and Mineral Reserves (SAMREC) and the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves (2014).

2) The ZnEq = (Zn% + (Pb% \* 0.73) + (Ag g/t \* 0.019290448)).

3) The Mineral Resources have been calculated in accordance with definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum. Employees of Glencore have prepared these calculations.

4) Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not account for a resource's mineability, selectivity, mining loss, or dilution.

5) An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

6) All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

7) Reported in-situ Mineral Resources do not consider mineral availability by underground mining methods.

8) Historical Mineral Reserves and Resources are inclusive of Mineral Reserves shown at 100% ownership.

Source: Glencore (2020)

For comparison, Table 6-2 shows the Measured and Indicated Resources for 2018 and 2019, respectively which reflects mining depletion and changes in classification due to additional drilling and sampling during operations. The historic Indicated and Inferred Resources are reported at a 2% ZnEq cut-off grade.

**Table 6-2: Historic Mineral Resource Estimate for 2018 and 2019**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Measured** | **Measured** | **Indicated** | **Indicated** | **Measured + Indicated** | **Measured + Indicated** | **Inferred** | **Inferred** |
| | **2019** | **2018** | **2019** | **2018** | **2019** | **2018** | **2019** | **2018** |
| Ore (Mt) | 0.8 | 1.2 | 0.3 | 0.7 | 1.2 | 1.9 | 1.8 | 2.2 |
| Zinc (%) | 10.7 | 11.3 | 9.7 | 10.4 | 10.4 | 10.8 | 10 | 11 |
| Lead (%) | 0.6 | 0.7 | 0.6 | 0.7 | 0.6 | 0.9 | 1 | 1 |
| Silver (g/t) | 76 | 106 | 87 | 102 | 79 | 108 | 87 | 102 |

---

Source: Glencore (2020)

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Glencore reported resources and reserves in accordance with the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), the 2016 edition of the South African Code for Reporting of Mineral Resources and Mineral Reserves (SAMREC) and the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves (2014 edition). The term 'Ore Reserves', as defined in Clause 28 of the JORC Code, has the same meaning as 'Mineral Reserves' as defined in the CIM Definition Standards for Mineral Resources and Mineral Reserves. All tonnage information has been rounded to reflect the relative uncertainty in the estimates; there may therefore be small differences in the totals. The Measured and Indicated resources are reported inclusive of those resources modified to produce reserves, unless otherwise noted. Commodity prices and exchange rates used to establish the economic viability of reserves are based on long-term forecasts applied at the time the reserve was estimated.

6.3 Production
 2018 to 2022

The production generated from the Porco Mine from the period 2018 to 2022 is shown in Table 6-3.

**Table 6-3: Production at the Porco Mine, 2018 to 2022**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Year** | **Tonnes** | **Zn%** | **Pb%** | **Ag g/t** |
| 2018 | 233159 | 6.95 | 0.58 | 84 |
| 2019 | 219561 | 7.08 | 0.64 | 66 |
| 2020 | 82798 | 7.73 | 0.68 | 72 |
| 2021 | 100346 | 7.93 | 0.77 | 165 |
| 2022 | 188602 | 7.12 | 0.61 | 117 |

---

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7 GEOLOGICAL SETTING AND MINERALIZATION

7.1 Introduction

The geological setting and framework detailed herein, is primarily referenced from the definitive publications for Bolivian geology such as Redwood (2021) and Arce-Burgoa (2009).

7.2 Geological
 Tectonic Framework and Regional Geology

The geologic-tectonic framework of Bolivia can be divided into six physiographic provinces. From east to west (Figure 7-1), these are the Precambrian Shield, the Chaco-Beni Plains, the Sub Andean zone, the Eastern Cordillera (or Cordillera Oriental), the Altiplano, and the Western Cordillera (or Cordillera Occidental). The latter four provinces are elements of the Mesozoic- Cenozoic Andean orogen in Bolivia (Arce-Burgoa, 2002, 2007), which hosts an abundance of mineral deposits (Figure 7-2). The landward Precambrian Shield, exposed far to the east of the Andes, represents an area of great mineral potential, but has had limited exploration.

**Figure 7-1: Regional Geology Setting**![](ex99-30_021.jpg)

Source: Arce-Burgoa (2009)

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**Figure 7-2: Regional Geology Setting with Deposit Types**

![](ex99-30_022.jpg)

Source: Arce-Burgoa (2009)

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Rocks of the Precambrian Shield in easternmost Bolivia have commonly been hypothesized to represent the southwestern part of the Amazon craton, covering an area of approximately 200,000 square kilometer (km<sup>2</sup>), or 18% of Bolivia. The lithological units are mainly Mesoproterozoic medium and high-grade metasedimentary and meta-igneous rocks, which have been covered by Tertiary laterites and Quaternary alluvial basin deposits. Earlier studies have referred to this as the Guaporé craton, but Santos et al. (2008) proposed that are not basement rocks belonging to the craton proper but rather, that they represent the 1.45–1.10 Ga Sunsas orogen, formed along the craton margin. Major tectonic events in the orogen are dated 1465– 1420, 1370–1320, and 1180–1110 Ma. The subsequent Brazilian tectonism (ca. 600–500 Ma) only had minor effects on the orogen (Litherland et al., 1986, 1989).

The Chaco-Beni plains, located in the central part of the country, cover 40% of Bolivia. The topography is dominated by the southwestern Amazon basin wetlands. Lying below 250 m elevation the wetlands offer little relief or outcrop. These extensive plains are part of the foreland basin of the Central Andes and include a 1 to 3 km thick sequence of Cenozoic foreland alluvial sediment in the west and much thinner accumulations atop a broad forebulge to the east (Horton and DeCelles, 1997). This sequence overlies Tertiary red-bed sediments that are >6 km thick which in turn rest unconformably on the Precambrian crystalline basement to the east and Paleozoic and Mesozoic sedimentary rocks to the west. The alluvial accumulations are products of several Neogene to Holocene episodes of post-kinematic and epeirogenetic isostatic adjustment in the Eastern Andes and its piedmont.

Rocks of the Bolivian Andean orogen include the Subandean zone, Eastern Cordillera, Altiplano, and the Western Cordillera, represent approximately 42% of Bolivia. These physiographic provinces form a series of mountain chains, isolated mountain ranges, and plains, with a north- to-south trend (Ahlfeld and Schneider-Scherbina, 1964). This part of the orogen has a length of 1,100 km, with a maximum width of 700 km, and an average crustal thickness of 70 km. The orogen displays a distinct oroclinal bend in the main fabric orientation at the Arica Elbow (18°– 19°S).

The Subandean zone is the thin inland margin of an orogen-parallel fold-and-thrust belt, which is partly obscured by sediments of the western side of the active foreland basin. It is characterized by north- south- trending, narrow mountain ranges with elevations between 500 and 2,000 m. The dominant lithologies include Paleozoic siliciclastic marine and Mesozoic and Tertiary continental sedimentary rocks.

The Eastern Cordillera, the uplifted interior of the Andean thrust belt, includes polydeformed sequences of shale, siltstone, limestone, sandstone, slate, and quartzite deposited since the Ordovician. The largely Paleozoic clastic flysch basin sediments and metamorphic rocks extend over an area of approximately 280,000 km<sup>2</sup> were deposited along the ancient Gondwana margin and first deformed in the middle to late Paleozoic. After Permian to Jurassic rifting, they were uplifted, folded and displaced on thrust faults during the Andean compression, which may have been as early as Late Cretaceous (McQuarrie et al., 2005).

The Altiplano is comprised of a series of intermontane, continental basins with a combined length of approximately 850 km, an average width of 130 km, and an area of approximately 110,000 km<sup>2</sup>. The basins have been uplifted to form a high plateau at elevations between 3,600 and 4,100 m. Geomorphologically, the province consists of an extensive flat plain that is interrupted by isolated mountain ranges. Crustal shortening, rapid subsidence, and, with concurrent sedimentation accumulated a sequence thickness of as much as 15 km during the Andean orogeny (Richter et al., in USGS and GEOBOL, 1992). Basin fill was dominated by erosion of the Western Cordillera during Late Eocene-Oligocene, but Neogene shortening in the Eastern Cordillera and Subandean zone led to a subsequent dominance of younger sediments derived from the east (Horton et al., 2002).

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The Western Cordillera consists of a volcanic mountain chain that is 750 km in length and 40 km in average width, with an area of about 30,000 km<sup>2</sup>. Late Jurassic and Early Cretaceous flows and pyroclastic rocks and marine sandstone and siltstone sequences dominate the Cordillera in Peru and Chile. Lesser Late Cretaceous continental sediment was deposited above the marine rocks and, simultaneously, large granitoid plutons, many of which are associated with large porphyry orebodies, were emplaced along the coasts of adjacent Peru and Chile. In Bolivia, the province is dominated by high andesitic to dacitic strata volcanoes, erupted since ca. 28 Ma, which define the narrow, main Central Andes magmatic arc.

7.2.1 Eastern
 Cordillera

The Bolivar, Porco and Caballo Blanco deposits are located in the central part of the Eastern Cordillera, a thick sequence of Paleozoic marine siliciclastic and argillaceous sedimentary rocks deposited on the western margin of Gondwana and deformed in a fold-thrust belt. There were two major tectonic cycles in the Paleozoic: The Lower Paleozoic Famatinian cycle (the Tacsarian and Cordilleran cycles of Bolivia), and the Upper Paleozoic Gondwana cycle (Subandean cycle of Bolivia).

The late Precambrian supercontinent broke up with the opening of the southern Iapetus Ocean and the spreading of Laurentia away from Gondwana in the latest Precambrian or early Cambrian (Figure 7-3 through Figure 7-5). Ocean closure and collision of Laurentia and the South American segment of Gondwana during the Ordovician formed the Famatinian orogenic belt of NW Argentina (Dalla Salda et al., 1992a) which has been correlated with its probable Laurentian equivalent, the Taconic event of the Appalachian orogen (Dalla Salda et al., 1992b). The Famatinian belt records extension in the latest Precambrian with establishment of subduction during the Cambrian and closure of the ocean basin and continent-continent collision in the Ordovician (480-460 Ma) (Figure 7-6). The Pre-Cordillera Terrane carbonate platform of western Argentina, which has faunal similarities with eastern North America, may be a sliver of eastern Laurentia detached in the late Ordovician when Laurentia separated from Gondwana again (Dalla Salda et al., 1992a; b) (Figure 7-7 and Figure 7-8).

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**Figure 7-3: Plate Tectonic Reconstructions of the Neoproterozoic Subcontinent and the Late Precambrian Supercontinent after the Opening of the Southern Iapetus Ocean**

![](ex99-30_023.jpg)

Source: Hoffman (1991)

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**Figure 7-4: Plate Tectonic Reconstructions of the Neoproterozoic and Late Precambrian Subcontinents**

![](ex99-30_024.jpg)

Source: Story (1993)

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**Figure 7-5: Paleogeography of SW Gondwana Margin in the Early Ordovician**

![](ex99-30_025.jpg)

Source: Forsythe et al, (1993)

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**Figure 7-6: The Famatinian – Taconic Orogen in the Middle Ordovician**

![](ex99-30_026.jpg)

Source: Dalla Salda et al, (1992b)

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**Figure 7-7: The Ordovician of the Central Andes (Cunningham et al., 1994b)**

Source: Forsythe et al, (1993)

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7.2.2 Tacsarian
 Cycle (Upper Cambrian to Ordovician)

During the Upper Cambrian to Caradoc Tacsarian Cycle a broad marine back-arc rift basin existed in Bolivia-Peru with its axis in the Eastern Cordillera. There was oceanic spreading in the southern part of the basin (Figure 7-6), the Puna Straits in NW Argentina, preserved as ophiolites, with intrusions of basic dikes and sills further north in the Bolivian basin. A possible magmatic arc on the Arequipa Terrane to the west of the basin, represented by calc-alkaline plutonic and volcanic rocks dated at 487-429 Ma (Mpodozis & Ramos, 1989), separated the back arc basin from a forearc. The Arequipa microplate swung about a hinge to the NW to form the Puna Straits and Bolivia-Peru back arc basin, as a Gulf of California-type basin (Sempere, 1991) or Japan- type basin (Forsythe et al., 1993). This was bordered to the east by another subduction-related magmatic arc in western Argentina, the Puna arc, and its southward continuation, the Sierras Pampeanas magmatic arc, represented by a granitoid belt (Mpodozis & Ramos, 1989). The Ocloyic Orogeny closed the Puna Straits Ocean basin during the Llanvirn-Caradoc, as evidenced by granitic magmatism.

In SW Bolivia, the sedimentary sequence begins with shallow marine clastic sediments of the basal Tremadoc transgression, which grade upwards into open marine thick graptolitic shales intercalated with subordinate turbidites and slumps of late Cambrian – Llanvirn age. The base of this super sequence outcrops in several localities along the Cochabamba-Chapare Road (central part of the Eastern Cordillera), which were described as part of the Limbo Group and of other Cambrian formations (Castaños & Rodrigo, 1978).

The majority of the sequence consists of thick and monotonous Lower to Middle Ordovician shale beds, with subordinate siltstones and sandstones are part of the Cochabamba Group, which from base to top includes the Capinota, Anzaldo, and San Benito Formations. In the southern part of Tarija, the sequence base includes shallow marine clastic rocks. These grade upward to thick, marine graptolitic shales with subordinate Cambrian turbidites of the Condado, Torohuayco, and Sama Formations (Castaños & Rodrigo, 1978). Farther north, the sequence consists of thick graptolitic and cephalopodic shales: which have localized the main decollement zone during the Neogene, and consequently older rocks are rarely exposed in the Bolivian Andes.

In southern Bolivia the shales were affected by the Ocloyic deformation with development of folding, cleavage and schistosity. The effects of this orogeny diminished to the east and north, and are not identified north of 20°S. In the north and east, the basin developed as a marine foreland basin during deformation which was infilled with the deposition of a thick, monotonous sequence of shallowing upward, shallow marine siliciclastic interbedded sandstone and shale in the Middle to Late Ordovician (Llanvirn - Caradoc) (Sempere, 1990a, b, 1991, 1993).

7.2.3 The
 Cordilleran Cycle (Late Ordovician to Late Devonian)

During the Late Ordovician to Late Devonian Cordilleran Cycle (Chuquisaca Super sequence), the Bolivia-Peru basin occupied a back-arc setting, then from the late Llandovery formed a marine foreland basin. These basins lay east of the Puna arc on the Arequipa block, which continued south as the Sierra Pampeanas magmatic arc granitoid belt until the Early Carboniferous. These arcs were related to an eastward-dipping subduction regime east of the Precordillera. The cratonic Chilenia Terrane of the Cordillera Frontal collided with the continental margin in the latest Devonian to early Carboniferous, and the collision caused intense deformation in the western Precordillera. (Mpodozis & Ramos, 1989; Ramos et al., 1986; Ramos, 1988; Sempere, 1993).

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The Cordilleran cycle began in Bolivia with rapid deepening of the basin as a back-arc with black pyritic-shale deposition (Tokochi Formation) followed by resedimented glacial-marine diamictites sediments in the Ashgill (Cancañiri Formation) with rare thin fossiliferous limestones. These are overlain by thickly bedded, thinning-upward turbidites (Llallagua Formation) and/or dark shales with minor turbidites (Uncía/Kirusillas Formation) from late Llandovery to Ludlow. Deposition in the basin was controlled by active normal faulting. Facies succession was induced by a major glacio-eustatic sea level low (the Ashgillian ice age) which developed between two maximum flooding episodes. The Uncía/Kirusillas Formation was the first of three main shallowing-up megasequences, which began with thick dark shales and ended with sandstone dominated units, of late Llandovery - Lochkovian, Pragian - early Giventian and late Giventian - middle Famennian ages. These were deposited in a large subsiding marine foreland basin covering the Bolivian Andes, Subandean zone and Chaco-Beni plains, reaching as far as the SW edge of the craton where they onlap the Chiquitos Supergroup (Litherland et al., 1986). This interval was a time of onlap towards the northeast and of deposition of major hydrocarbon source rocks in Bolivia. (Sempere, 1990a; b;1991; 1993).

The Cordilleran Cycle is generally considered to have been terminated by the Late Devonian to Early Carboniferous Hercynian Orogeny, which has been defined in Perú where the effects are much more evident. The presence of Hercynian orogenesis in Bolivia has been questioned however, due to Late Triassic U-Pb zircon age dates of 225 Ma (Farrar et al., 1990) for both foliated and weakly foliated facies of the Zongo-Yani granite, and by implication its wide metamorphic aureole, which was assigned an "Eohercynian" age by Bard et al. (1974).

7.2.4 Subandean
 (Gondwana) Cycle (Upper Paleozoic)

The Upper Paleozoic Gondwana Cycle was characterized by establishment of eastward subduction along the new Pacific margin west of Chilenia (Cordillera Frontal) and development of a broad forearc accretionary prism, which contains blue schists and ocean floor fragments. A magmatic arc lay to the east of the subduction zone. This cycle was terminated by deformation during the lower Triassic Gondwanide orogeny, the effects of which southward. (Mpodozis & Ramos, 1989; Ramos et al., 1986; Ramos, 1988).

In Bolivia, the Upper Paleozoic Subandean Cycle is characterized by the Late Devonian (Late Famennian) - Early Carboniferous (Mississippian) Villamontes Supersequence, deposited in the Subandean zone, Chaco and Titicaca basin, is mainly marine and comprises mudstone, black shale, sandstone, coal, glacial-marine sediments, diamictites and slumps, the stratigraphy of which is conflictive due to rapid facies variations (Sempere, 1993). The Eastern Cordillera was emergent. This was a period of high epeirogenic activity and synsedimentary tectonic instability coeval with the Hercynian deformation in Peru. Sempere (1993) considers the Mississippian sedimentation to have been the culmination of the Silurian - Devonian evolution.

Subsequently the Late Carboniferous (Pennsylvanian) - Early Triassic Cueva Supersequence was developed during a period of low subsidence and subtropical climate. In western Bolivia there was a shallow carbonate platform in the Titicaca Basin (Copacabana Formation) with deposition of white littoral-fluvial-eolian sands and evaporites on the eastern platform in the Subandean zone. The compressional Gondwana (Late Hercynian) deformation in the middle Permian of the Eastern Cordillera of Peru had weak effects in the Eastern Cordillera of Bolivia.

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This deformation was accompanied by transgression of the marine carbonate platform to the east. Post-orogenic calc-alkaline magmatism in the Early - Middle Triassic evolved in the late Middle Triassic toward continental tholeiitic compositions, reflecting the extension which initiated the Andean Cycle (Sempere, 1990a; b; 1993; Soler & Sempere, 1993).

7.2.5 The
 Mesozoic to Cenozoic Andean Cycle: The Serere, Puca and Corcoro Supersequences

The Andes developed during the Mesozoic to Cenozoic Andean Orogenic Cycle. Distension in the Middle to Upper Triassic related to the initial break up of Gondwana marked the start of the Andean Cycle. In the first part of the cycle, from Triassic to mid Cretaceous, an eastward dipping subduction zone existed along the length of the Pacific margin of Peru and Chile with a magmatic arc and back-arc basin, which in some segments had oceanic crust. In Chile, the arc was superimposed on the Late Paleozoic accretionary prism and an eastward younging coastal batholith intruded. (Cobbing, 1985; Dalziel, 1986; Mpodozis & Ramos, 1989).

During the Middle Triassic - Middle Jurassic, the Andean region of Bolivia was part of a stable cratonic regime. An initial rifting process of late Middle Triassic age developed in several areas, and numerous narrow grabens were filled by fluvio-lacustrine red beds and evaporites, accompanied by tholeiitic to transitional basalts (Sempere, 1990a; 1993; Soler & Sempere, 1993). Cessation of rifting in Bolivia was probably a consequence of a regional tectonic reorganization at about 220 Ma, which probably marked the resumption of subduction along the Pacific margin. The subsequent Late Triassic - Middle? Jurassic onlapping sedimentation of fluvial and eolian sands was probably controlled by post-rift thermal subsidence. The environment was of sandy deserts on the craton, akin to the Arabian Shield (Sempere, 1990a; 1993). These deposits of the Serere Supersequence occur in the Eastern Cordillera and Subandean Zone.

Since the Late Jurassic, Bolivia has been part of the Pacific subduction regime. This was marked by a Kimmeridgian rifting event in Bolivia, the "Araucana Phase", with extrusion of alkaline basalts which initiated the Puna Supersequence (Sempere et al., 1989; Sempere, 1993; Soler & Sempere, 1993). Bolivia was set in a back arc setting to the east of the Pacific margin arc and back-arc basin, with deposition of coarse clastic continental sediments and alkali basalts in the Potosí and Titicaca basins in a distensive regime related to a transtensional continental margin until the Aptian (Sempere et al., 1989).

The Upper Cretaceous and Cenozoic of Perú - Chile was characterized by a subduction-related continental magmatic arc with no back-arc basin. In Peru, the 110 - 60 Ma Coastal Batholith was emplaced into the Jurassic - Early Cretaceous back-arc basin volcanic pile between the Mochica and Incaic 1-fold phases (Pitcher et al., 1985). At the same time in the Central Andes the magmatic arc migrated eastwards. Large parts of the forearc zone and Mesozoic arc were removed during the Cretaceous and Tertiary, either by subduction erosion or by longitudinal strike-slip faults such as the Atacama Fault (Mpodozis & Ramos, 1989).

The mid Cretaceous compressive event inverted the Tarapacá back-arc basin of north Chile (Late Triassic - Early Cretaceous) to form the proto-Domeyko Cordillera fold-thrust belt (Mpodozis & Ramos, 1989). In Bolivia, sedimentation of the Puca Supergroup continued in a distal external foreland basin, with deposition controlled by rifting and eustatic marine transgressions from the NW. The sequence is transgressive with successively younger units covering greater areas and reaching a total thickness of up to 5,600 m in the Sevaruyo area. The strata consist of fine red-bed sediments, evaporites and alkali basalts, with marine red shales in the Aptian and marine carbonates in the Cenomanian, Campanian and Maastrichtian. (Riccardi, 1988; Sempere et al., 1989; Soler & Sempere, 1993). The end of the Puca Supersequence is marked by an important unconformity developed at the end of the Paleocene, followed by deposition of thick red beds in the Altiplano and Eastern Cordillera in an external continental foreland basin during the Eocene and Oligocene (53 - 27 Ma; Sempere 1990a).

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The Cenozoic evolution of Bolivia was dominated by considerable horizontal shortening (Sempere, 1990). Cenozoic basins of the Corocoro Supersequence developed in the Cordillera and in the plains in that time are related to the uplift of the Andes. During the Lower Paleocene- Lower Oligocene, a foreland basin formed east of the Andes. A thickening of the crust enabled the accumulation of 2.5 km of red beds in the Altiplano and Eastern Cordillera (Sempere, 1995).

7.2.6 The
 Andean Orogeny

The first major deformation in the Andean Cycle in Bolivia occurred during the Late Oligocene to Early Miocene (27-19 Ma) when the orogenic front jumped from west of Bolivia to the Eastern Cordillera, and the Bolivian Andes started to develop as a mountain belt. Major crustal shortening by thrusting occurred in the Eastern Cordillera, and deformation of the Subandean Zone also began. Since the Late Oligocene, the Altiplano has functioned as an intermontane foreland basin with deposition of thick continental sediments, with smaller intermontane basins in the Eastern Cordillera.

The external foreland basin moved east to the Subandean - Llanura (Beni-Chaco) Basin. The second major period of thrusting occurred between 11-5 Ma. Thrusting is mainly eastward- verging towards the foreland, with an important west-verging back-thrust belt in the eastern Altiplano and western side of the Eastern Cordillera.

7.2.7 Mesozoic
 to Cenozoic Magmatism

Extension-related granites were intruded in the Cordillera Real in the Triassic–Jurassic (227-180 Ma) (Everden et al., 1977; McBride, 1977; Grant et al., 1979; Farrar et al., 1990).

Alkaline volcanic activity was initiated in the Late Oligocene (28-21 Ma) in the Western Cordillera and western Altiplano, coincident with the first major period of deformation. At the same time granitoid plutons intruded in the southern part of the Cordillera Real (Illimani, Quimsa Chata, Santa Vera Cruz) with related tin-tungsten-silver-lead-zinc-polymetallic mineralization (28-20 Ma). Similar deposits also developed to the south as far as Potosi, such as Colquiri and Chicote Grande. These deposits are hosted by Paleozoic sediments and related to buried plutons of this age. The main period of magmatism was the Middle Miocene (17-12 Ma) with an eastward "breakout" of magmatism in an unusually broad arc across the Western Cordillera, Altiplano and Eastern Cordillera, generally forming small extrusive (domes) and intrusive (stocks, sills) bodies. Further magmatism occurred across this wide arc during the Late Miocene (10-5 Ma) during the second main period of crustal shortening. This was characterized by stratovolcanoes, ash-flow calderas, and major ignimbrite shields such as Los Frailes and Morococala in the Eastern Cordillera. (Baker, 1981; Baker & Francis, 1978; Evernden et al., 1977; Grant et al., 1979; McBride et al., 1983; Redwood, 1987; Redwood & Macintyre, 1989; Soler & Jimenez, 1993; Thorpe et al., 1982.)

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7.3 Local
 Geology

The Porco silver-zinc-tin deposit is located 35 km southwest of the Cerro Rico de Potosí deposit on the southeastern edge of the Los Frailes volcanic field. It was the first silver deposit discovered in Bolivia, with exploitation dating to pre-colonial times. The geology has been described by Sugaki et al. (1983), Cunningham et al. (1993, 1994a, b) and Jiménez et al. (1998).

The deposit is hosted by a north-south-elongated caldera that is 5.0 km x 3.0 km and formed at

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.0 ± 0.4 Ma with the eruption of the crystal-rich dacitic Porco Tuff. Well-defined topographic walls of the caldera cut Ordovician phyllites and Cretaceous sandstones. The 12.1 ± 0.4 Ma Apo Porco stock (4,886 masl) occurs on the southern margin of the caldera. Mineralization is associated with the younger 8.6 ± 0.3 Ma Huayna Porco stock (4,528 masl) in the center of the caldera. Radial dykes, alteration and metals are zoned around the stock. To the north, the Porco Tuff is overlain by the ignimbrites of the Los Frailes Formation dated at 6 to 9 Ma.

Mineralization occurs in NNE to NE-trending veins that cut the Porco Tuff about 1 km east of the Huayna Porco stock. The deposit is zoned around the stock with cassiterite proximal to the stock and base metals, mainly sphalerite and galena, further away. The upper parts of the veins are silver-rich with pyrargyrite, acanthite and stephanite. The main structure is the San Antonio vein which strikes N10º - 30ºE and dips between 70º and 85º to the east. It is 300 m in vertical extent and 1.2 m to 2.0 m in width. To the south, the vein branches into the Oriente, Misericordia, and Santos veins, whose lengths vary between 500 m to 1,500 m. The main ore minerals are pyrite, sphalerite, galena, argentiferous galena, native silver, chalcopyrite, and arsenopyrite in a gangue of quartz. Other important structures are the Muestra Grande vein on Huayna Porco Hill, where the grade reached 2,300 g/t Ag (Sugaki et al., 1983), and the Rajo Zúñiga vein, which strikes N30ºE and dips 75º-80ºE. The latter vein, with widths between 1.0 m and 1.5 m, was exploited in a 100 m x 20 m open pit. This altered dacite-hosted vein is accompanied by associated veinlets and disseminations in the wall rock and consists of cassiterite, wolframite, galena, silver sulphosalts, and pyrite.

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**Figure 7-8: Geological Map of the Porco Caldera (Cunningham et al., 1994b)**

![](ex99-30_028.jpg)

Source: Cunningham et al, (1994)

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The Porco silver-zinc-tin deposit is located 35 km southwest of the Cerro Rico de Potosí deposit on the southeastern edge of the Los Frailes volcanic field. It was the first silver deposit discovered in Bolivia, with exploitation dating to pre-colonial times. The geology has been described by Sugaki et al. (1983), Cunningham et al. (1993, 1994a, b) and Jiménez et al. (1998).

The deposit is hosted by a north-south-elongated caldera that is 5.0 km x 3.0 km and formed at 12.0 ± 0.4 Ma with the eruption of the crystal-rich dacitic Porco Tuff. Well-defined topographic walls of the caldera cut Ordovician phyllites and Cretaceous sandstones. The 12.1 ± 0.4 Ma Apo Porco stock (4,886 masl) occurs on the southern margin of the caldera. Mineralization is associated with the younger 8.6 ± 0.3 Ma Huayna Porco stock (4,528 masl) in the center of the caldera. Radial dykes, alteration and metals are zoned around the stock. To the north, the Porco Tuff is overlain by the ignimbrites of the Los Frailes Formation dated at 6 to 9 Ma.

Mineralization occurs in NNE to NE-trending veins that cut the Porco Tuff about 1 km east of the Huayna Porco stock. The deposit is zoned around the stock with cassiterite proximal to the stock and base metals, mainly sphalerite and galena, further away. The upper parts of the veins are silver-rich with pyrargyrite, acanthite and stephanite. The main structure is the San Antonio vein which strikes N10º - 30ºE and dips between 70º and 85º to the east. It is 300 m in vertical extent and 1.2 m to 2.0 m in width. To the south, the vein branches into the Oriente, Misericordia, and Santos veins, whose lengths vary between 500 m to 1,500 m. The main ore minerals are pyrite, sphalerite, galena, argentiferous galena, native silver, chalcopyrite, and arsenopyrite in a gangue of quartz. Other important structures are the Muestra Grande vein on Huayna Porco Hill, where the grade reached 2,300 g/t Ag (Sugaki et al., 1983), and the Rajo Zúñiga vein, which strikes N30ºE and dips 75º-80ºE. The latter vein, with widths between 1.0 m and 1.5 m, was exploited in a 100 m x 20 m open pit. This altered dacite-hosted vein is accompanied by associated veinlets and disseminations in the wall rock and consists of cassiterite, wolframite, galena, silver sulphosalts, and pyrite.

7.4 Property
 Geology

A definitive reference for the Porco deposit is that of Arce-Burgoa, 2009 which states "the deposit is hosted by a north south trending collapsed caldera that is 5 km by 3.5 km. The caldera is composed of Tertiary nested domes and acidic to dacitic tuffs of the Aqua Dulce and Nesteria formations (Mendieta et al, 1963). In addition, two younger dacitic stocks are exposed in Cerro Huayna Porco and Cerro Apa Porco (Figure 7-7). The sedimentary basement consists of Ordovician phylites that discordantly underlay Cretaceous sandstones (Jiminez et al, 1998).

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**Figure 7-9: Simplified Geologic Map of the Porco Deposit (modified from Jiminez et al, 1998)**

![](ex99-30_029.jpg)

Source: Arce-Burgoa (2009)

Mineralized flows and tufts in the northeast are partially covered by flows of that Tollojchi Complex, which were dated at 10.5 ± 0.3 Ma and 11.5 ± 0.42 Ma (Schneider and Halls, 1985). To the northwest, the tufts and the Paleozoic and Mesozoic rocks are overlain by the ignimbrites of the Los Friales formation which have reported ages of 12.0 ± 0.4 Ma. Sanidine from the Huayna Porco stock shown in Figure 7-7 is dated at 8.6 ± 0.3 Ma.

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The igneous complex hosts numerous mineralized structures developed in both the dacites and altered tuffs. The main structure hosts the San Antonio vein which strikes N 10o 230oE and dips between 70o and 85o to the east, it is 300 m in vertical extent, and 1.2 to 2.0 m in width. To the South, the vein branches into the Orient, Misericordia and Santos veins, whose lengths vary between 50 to 1,500 m. The main minerals are pyrite sphalerite, galena, argentiferous galena, native silver, chalcopyrite, and arsenopyrite in a dominant gangue of quartz.

Other important structures in the deposit host the Muesta Grande vein located at Cerro Huayna Porco (Sugaki et al, 1993), and the Rajo Zuniga vein, which strikes N 30o East and dips 75 to 80oE. The latter vein, with widths between 1.0 m and 1.5 m, which was exploited in a 100 m by 20 m open pit. This altered dacite hosted vein is accompanied by associated veinlets and disseminations in the wall rock and consists of cassiderite, wolframite, galena, silver sulfosalts, and pyrite. Fluid inclusion data collected from several zones of the deposit show some important variations with respect to the homogenization temperatures and salinities (Table 7-1), (Sugaki et al, 1981).

**Table 7-1: Fluid Inclusion Results**

---

| | | |
|:---|:---|:---|
| **Zone** | **Homogenization Temperatures (degrees)** | **Salinities (wt.% NaCl eq.)** |
| Sn-Py | 210-360 | 11.5 - 30.4 |
| Sn-Ag | 150-287 | 10.4 - 20.2 |
| Ag | 150-258 | 2.2 - 8.9 |

---

Source: Sugaki et al, (1991)

7.5 Mineralization

The characterization of the mineralization at the Porco site as theorized in Figure 7-8 may be summarized as follows:

● Hydrothermal reservoir;

● Epithermal phase, which allows the uptake of base metals (Zn, Pb, Cu) and (Au-Ag) of low sulphidation;

● Vein type;

● Temperature range, 50°C - 300°C;

● Deposit depth, between 50 m-500 m depth from the surface;

● Mineralization can be internally heterogeneous, with low to high-strength sectors and sterile sectors;

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● Filled in fractures or zones of weakness;

● Vein systems can be parallel, reticular, convergent and or conjugate;

● Plutonic rocks of intermediate to acidic composition are favorable;

● Epithermal deposits are generally associated with Tertiary volcanism and very few older deposits;

● Alteration is predominantly sericitization, hydration, carbonatization, pyritization and propylitization; and

● The Porco deposit is typical Philonian type deposit, the mineralization to refill the fractures within the superjacent Ordovician slate north of the deposit.

**Figure 7-10: Conceptual Model of the Mineralogical Genesis of the Porco Deposit**

![](ex99-30_030.jpg)

Source: Glencore (2020)

The mineralized zones or veins are polymetallic, monoclinal banded structures but may also be crustiform or in geodes presenting in rosary form. Thicknesses range from between 0.01 m to 4.0 m but can reach widths of ~10.0 m usually in rameada form interspersed with country rock or mineral gangue.

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7.5.1 Veta
 San Antonio Principal

The San Antonio structure is located in the main corridor striking N 10° - 30°E with dips ranging between 60°-75° and is developed from the Santacruz level to the -330 level.

The mineralogy of the San Antonio Principal vein, located in the central sector of the deposit), consists of sphalerite, pyrite, galena, marcasite, which correspond to the intermediate phase of the mineralization this is changing towards depth enriching in marmatite, pyrite.

7.5.2 Elena
 Vein

The structure is located in a fault-oriented N 10° - 50°E and dipping between 40°-62° which is developed from the San Cayetano level to the -330 level.

The mineralogy of the vein consists of sphalerite, pyrite, galena, siderite kaolin, which corresponds to the intermediate phase of the mineralization this changing at depth enriching in marmatite and pyrite.

7.5.3 Vein
 Ramo Elena

The structure is located between the main San Antonio and Elena veins in direction and diving ranging from N 70° - 80°W/50°-75° in vertical longitude is developed from level 105 to level -195.

The mineralogy of the vein consists of marmatite pyrite galena, and they correspond to the late phase of mineralization.

7.5.4 Vein
 Rosario

The Rosario structure is located between the Elena and Ramo Elena veins-oriented N 10° - 30° W and dipping 55°-65° which developed from level 60 to level -195.

The mineralogy of the vein consists of sphalerite, pyrite, galena, siderite kaolin, which corresponds to the intermediate phase of mineralization.

7.5.5 Vein
 RH6

The RH6 structure is located at the intersection of the Huayna Porco stock and Apo Porco becoming part of the Pamela, Crucera II, Larga 3, Crucera IV, Crucera Pamela, Ramo Pamela and H-6 vein system. This corridor has high concentrations of silver sulfosalts compared to the rest of the corridors.

All the structures that are contained in this vein system-oriented N 10°W - N 40°E and dipping 60°SW- 70°SE which has been developed from the Huayna Porco level to the -240 level.

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The mineralogy of the vein consists of sphalerite, marmatite, pyrite, galena, sulfosalts, siderite, and that correspond to the intermediate phase of the mineralization.

7.5.6 Veta
 Colorada Uno

The Veta Colorada Uno is located along a corridor north of the Huayna Porco stock that emerges from the main Hundimiento vein, with an orientation of N 5°E.

Located in Tertiary age dacitic rocks the vein has approximate length of 500 m in length with thicknesses that average 2 m and occur in the form of massive veins.

The mineralogical content consists of ~70% sphalerite, ~10% pyrite, ~10% galena and ~10% marmatite. However, at deeper levels the percentages are reversed reducing to 45% sphalerite and 5% galena, with the marmatite and pyrite proportionally increases at depth.

7.5.7 Veta
 Hundimiento

The Hundimiento zone corridor intersects the Huayna Porco stock at an orientation of N 15°E.

It is hosted in Tertiary age dacitic rocks extending ~1,000 m in length with average widths of 3 m in the form of massive veins.

The mineralogical content consists of ~30% sphalerite, ~50% pyrite, ~10% galena, ~5% marmatite and ~5% siderite. However, the percentages are decrease at depth to ~25% sphalerite and ~2% galena; while pyrite proportionally increases at depth but marmatite and siderite remain at depth.

7.5.8 Vein
 California

Veta California is located in the Hundimiento zone corridor where it intersects the Huayna Porco stock parallel to the Hundimiento vein at an orientation of N 15-20° E.

Veta California is hosted in Tertiary age dacitic rocks extending approximately 1,000 m with average widths of 1.5 m in the form of gaped veins.

The mineralogical content consists of ~60% sphalerite, ~10% pyrite, ~5% galena and ~25% marmatite. However, as the vein deepens the percentages decrease to ~45% sphalerite and ~20% marmatite; while pyrite increases proportionally, and siderite begins to appear.

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8 DEPOSIT TYPES

The most important ore deposits of the Eastern Cordillera are polymetallic hydrothermal deposits mined principally for Sn, W, Ag and Zn, with sub-product Pb, Cu, Bi, Au and Sb. They are related to stocks, domes and volcanic rocks of Middle and Late Miocene age (22 to 4 Ma). Mineralization occurs in veins, fracture swarms, disseminations and breccias. The deposits of the Eastern Cordillera are epithermal vein and disseminated systems of Au, Ag, Pb, Sb, as that have been telescoped on to higher temperature mesothermal Sn-W veins and, in some cases, porphyry Sn deposits. The "telescoping" is a characteristic of these deposits and is the product of the collapse of a hydrothermal system, whereby younger lower temperature fluids overprint the alteration and mineralization developed by older higher temperature fluids. The systems show a fluid evolution from a high temperature, low sulfidation state to intermediate sulfidation epithermal and high sulfidation epithermal.

A typical example is the Cerro Rico where high temperature veins at depth, with a low sulfidation assemblage of cassiterite, wolframite, pyrite, arsenopyrite, bismuthinite and minor pyrrhotite (the main tin-tungsten ore stage), are overprinted at higher levels by an intermediate sulfidation epithermal assemblage of Ag-Pb-Sb sulfosalts (the main silver ore stage), with disseminated high sulfidation epithermal silver mineralization in the upper part of the system (a major silver resource).

These polymetallic deposits have been described as Bolivian Polymetallic Vein Deposits by the

U.S. Geological Survey with the following characteristics (Ludington et al., 1992; Redwood, 1993; Sillitoe et al., 1975):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Lithological Control**. Paleozoic, Mesozoic and Cenozoic sedimentary rocks and metasediments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Structural Control**. Hinge zones of regional anticlines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Subvolcanic Intrusions**. Spatially and genetically related to stocks and volcanic rocks with 60-70
 % SiO2, clusters of dikes and/or porphyritic domes of rhyolite, dacite, rhyodacite, or quartz
 latitite composition with alkaline tendencies. The mineralization can occur within the stocks
 and domes, in volcanic rocks (e.g., Porco, Caballo Blanco), or in sedimentary rocks distal
 to stocks (e.g., Bolivar) or inferred to be related to buried stocks (e.g., Huanuni);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Style of Mineralization**. Disseminated, parallel veins, veinlets, fracture swarms, breccias;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Ore Minerals**. Pyrite, marcasite, pyrrhotite, sphalerite, galena, cassiterite, arsenopyrite,
 chalcopyrite, stibnite, stannite, teallite, tetrahedrite, tennantite, wolframite, bismuth,
 bismuthinite, argentite, gold, and Ag-Sb-sulphosalts (freibergite, andorite), Pb-Sb-sulfosalts
 (zinkenite, boulangerite, jamesonite), Pb-Sn-Sb-sulfosalts (franckeite, cylindrite), and
 Bi sulfosalts. Telescoping of intermediate sulphidation epithermal mineralization of Au,
 Ag, Pb, Sb, As, etc. on to higher temperature mesothermal, low sulphidation Sn-W mineralization
 is characteristic;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Gangue Minerals**. Quartz, barite, and Mn carbonate. There is a transition upward from massive
 sulfides, to quartz, quartz-barite, and barite-chalcedony towards the upper parts of the
 deposits; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Hydrothermal Alteration**. Sericitic (sericite-quartz-pyrite) often with tourmaline in the central part
 and zoned outward to argillic and propylitic alteration. The upper zones have advanced argillic
 lithocaps with alunite, residual vuggy silica and silicification. Breccias are common.

The Porco deposit is considered a "Bolivian-type" polymetallic deposit (Figure 8-1) which has the primary reference and quoted as described in Arce-Burgao (2009) and Heuschmidt (2000). The Bolivian vein deposits can be identified into three subgroups:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Deposits
 associated with tin porphyries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Deposits
 associated with volcanic domes and sub volcanic stocks; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Deposits
 associated with sedimentary rocks. This classification is based mainly on host rock lithology.

One of the most common types of mineralization in the country, the Bolivar-type is the product of widespread hydrothermal activity between 22 Ma and 4 Ma. The deposits are characterized by a polymetallic signature which is usually telescoped coexistence of low and high temperature minerals and are spatially related to epi-zonal and meso-zonal intrusions. Early stages of mineralization are high temperature, high salinity, and high pressure, indicative of great formations depths. Several overlapping stages of lower temperature events, due to later igneous events and supergene process during evolution of the Andes, occurred between 11 and 4 Ma. Several of these deposits are classified as giant, such as Sierra Rico de Potosi and Llallagua or "world class" such as Oruro and Huanumi.

On a district scale, deposits from the different subgroups may sometimes be spatially and or genetically associated. The style of mineralization includes groups of veins, subsidiary vane swarms, veinlets, stockwork, and dissemination mineralization. The veins are hosted in a variety of host rocks that include Paleozoic sedimentary and metasedimentary rocks, meso-zonal and epi-zonal stocks, and syn-kinematic flows, dikes and volcanic domes that are generally of rhyolitic, dacitic, and acidic compositions. In general, the deposits have similar origins although they differ with respect to metal signatures and/or fluid geochemistry.

The main metallic minerals, although not necessarily present in every deposit, are cassiterite, sphalerite, galena, pyrite, pyrrhotite, arsenopyrite, chalcopyrite, stibnite, stannite, tetrahedrite, wolframite, native bismuth, bismuthinite, argentite, native gold, and complex sulphosalts such as teallite, franckeite, and cylindiite. The main economically exploitable minerals are tin and silver, with less important tungsten, bismuth, an antimony.

The temperatures of homogenization and the salinities obtained from fluid inclusions in quartz and in sphalerite, and less commonly in cassiderite and barite, average 300 degrees C and 20% weight equivalent NaCl, respectively. Turneaure (1970), identified an early boiling during mineral deposition examining fluid inclusions, which was confirmed by later studies that showed boiling occurred intermittently during all stages of mineral deposition (Arce Burgoa and Nambu 1989).

The Porco zinc-tin deposit is located 50 km southwest of Potosi City in Antonio, Quijarro Province.

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**Figure 8-1: Conceptual Model of Bolivian Polymetallic Vein Type Deposits (modif. From Heuschmidt, 2000)**

![](ex99-30_031.jpg)

Source: Heuschmidt (2000)

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9 EXPLORATION

No exploration has been carried out on behalf of Santacruz.

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10 DRILLING

10.1 Drilling
 Summary

The Porco Mine is an "advanced property" and is a well-established, active mining operation. Glencore and subsequently Santacruz Silver has performed exploration and resource expansion drilling of 203 surface and underground drillholes at the Porco project since 2000 totalling 55,804.3 m.

As of January 2023, Santacruz had drilled 26 holes for a total of 5,163 m at the Porco Mine since the acquisition from Glencore. Table 10-1 and Table 10-2 summarizes the historical drilling at Porco, respectively. Note that the Santacruz drilling is highlighted in **blue**.

**Table 10-1: Porco Drilling Programs in 2000 through 2022**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Phase** | &nbsp;&nbsp;**Year** | &nbsp;&nbsp;**Hole ID** | &nbsp;&nbsp;**Type** | &nbsp;&nbsp;**Total (m)** | &nbsp;&nbsp;**Core Size** | &nbsp;&nbsp;**Target** | &nbsp;&nbsp;**Total <br> Program<br> Budget<br> ($US)** |
| &nbsp;&nbsp;I | &nbsp;&nbsp;2000 | &nbsp;&nbsp;DDHP01 - DDHP09 | &nbsp;&nbsp;Surface | &nbsp;&nbsp;2656 | &nbsp;&nbsp;HQ/NQ | &nbsp;&nbsp;vn: California, Hundimiento | &nbsp;&nbsp;252320 |
| &nbsp;&nbsp;II | &nbsp;&nbsp;2001 | &nbsp;&nbsp;DDHP10 - DDHP11 | &nbsp;&nbsp;Surface | &nbsp;&nbsp;632 | &nbsp;&nbsp;HQ/NQ | &nbsp;&nbsp;vn: Hundimiento, California | &nbsp;&nbsp;60040 |
| &nbsp;&nbsp;III | &nbsp;&nbsp;2005- 2006 | &nbsp;&nbsp;DDHP12 - DDHP54 | &nbsp;&nbsp;Surface / UG | &nbsp;&nbsp;16241 | &nbsp;&nbsp;HQ/NQ | &nbsp;&nbsp;vn: Hundimiento, California, Colorada Uno, San Antonio, Larga, | &nbsp;&nbsp;1818953 |
| &nbsp;&nbsp;IV | &nbsp;&nbsp;2007 | &nbsp;&nbsp;DDHP55 - DDHP64 | &nbsp;&nbsp;Surface | &nbsp;&nbsp;3799.6 | &nbsp;&nbsp;HQ/NQ | &nbsp;&nbsp;vn: Hundimiento | &nbsp;&nbsp;425555 |
| &nbsp;&nbsp;V | &nbsp;&nbsp;2008 | &nbsp;&nbsp;DDHP65 - DDHP71 | &nbsp;&nbsp;Surface | &nbsp;&nbsp;2414.2 | &nbsp;&nbsp;HQ/NQ | &nbsp;&nbsp;vn: California, Hundimiento | &nbsp;&nbsp;270390 |
| &nbsp;&nbsp;VI | &nbsp;&nbsp;2009 | &nbsp;&nbsp;DDHP72 - DDHP79 | &nbsp;&nbsp;Surface / UG | &nbsp;&nbsp;2546.1 | &nbsp;&nbsp;HQ/NQ | &nbsp;&nbsp;vn: Hundimiento, Elena, Monica | &nbsp;&nbsp;285163 |
| &nbsp;&nbsp;VII | &nbsp;&nbsp;2010 | &nbsp;&nbsp;DDH_POR_CB_80s - DDH_POR_CB_85s | &nbsp;&nbsp;Surface | &nbsp;&nbsp;2035.35 | &nbsp;&nbsp;HQ/NQ | &nbsp;&nbsp;vn: Crucera B, Ramo 1 Soledad | &nbsp;&nbsp;227959 |
| &nbsp;&nbsp;VIII | &nbsp;&nbsp;2011 | &nbsp;&nbsp;DDH_POR_CB_86s DDH_POR_PA_87s - DDH_POR_PA_94s | &nbsp;&nbsp;Surface | &nbsp;&nbsp;2799.55 | &nbsp;&nbsp;HQ/NQ | &nbsp;&nbsp;vn: Crucera B, Pamela, H5 | &nbsp;&nbsp;330347 |

---

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---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Phase** | **Year** | **Hole ID** | **Type** | **Total (m)** | **Core Size** | **Target** | **Total <br> Program<br> Budget <br> ($US)** |
| IX | 2014 | DDH_PO_CU_95i - DDH_PO_CU_99i ; DDH_PO_H_100i -<br> DDH_PO_H_104s | Surface / UG | 2428 | HQ/NQ | vn: Colorada Uno, Hundimiento | 316126 |
| X | 2015 | DDH_PO_H_105s -<br> DDH_PO_H_106s | Surface | 595 | HQ/NQ | vn: Hundimiento | 72977 |
| XI | 2017 | DDH_PO_CF_107i -<br> DDH_PO_CF_112i; DDH_PO_C2_113i -<br> DDH_PO_C2_116i; DDH_PO_AU_117i -<br> DDH_PO_AU_121i; DDH_PO_H_122i -<br> DDH_PO_H_123i | UG | 2762 | HQ/NQ | vn: California, Colorada, Aurora, hundimiento | 344845 |
| XII | 2018 | DDH_PO_CU_1124i -<br> DDH_PO_CU_131i | UG | 1645 | HQ/NQ | vn: Colorada uno, California | 201719 |
| XIII | 2019 | DDH_PO_CU_132i -<br> DDH_PO_CU_147i; DDH_PO_H_133i -<br> DDH_PO_H_142i; DDH_PO_CF_141Ai -<br> DDH_PO_CF_152i | UG | 3407 | HQ/NQ | vn: Colorado uno, Hundimiento, California | 473744 |
| XIV | 2020 | DDH_PO_CU_153i -<br> DDH_PO_CU_187i; DDH_PO_H_154i -<br> DDH_PO_H_172i; DDH_PO_CF_161i -<br> DDH_PO_CF_182i; DDH_PO_R1S_166i -<br> DDH_PO_R1S_173i; DDH_PO_SAP_174i -<br> DDH_PO_SAP_179i | UG | 6781 | HQ/NQ | vn: Colorada Uno, Hundimiento, California, Ramo 1 Soledad, San Antonio Principal. | 827713 |
| XV | 2022 | DD_PO_OR_188i -<br> DDH_PO_OR_189i; DDH_PO_CAR_190i -<br> DDH_PO_CAR_194i; DDH_PO_H_192i -<br> DDH_PO_H_213i; DDH_PO_CE_197i -<br> DDH_PO_CE_198i; DDH_PO_C2_200i -<br> DDH_PO_C2_212i; DDH_PO_EL_201i -<br> DDH_PO_EL_205i; DDH_PO_RCA_203i -<br> DDH_PO_RCA_204i | UG | 5163 | HQ/NQ | vn: Oriente, Carla, Hundimiento, Cecilia, Colorada, Elena, Ramo Camila | 664189 |

---

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 10-2

The drilling has been primarily focused upon the extension of the veins to depth particularly for definition and delineation of inferred resources. Figure 10-1 shows a plan view of drillhole locations along with the underground channel sample data. Figure 10-2 through Figure 10-4 shows representative section views of the drilling along with channel sample data and topography for the Porco mine.

Drilling methods and procedures including drilling, sampling, chain-of-custody, security and measurements such as downhole surveying and recoveries, are consistent for Bolivar, Caballo Balance and Porco.

**Figure 10-1: Plan View of Drillhole Locations at Porco**

![](ex99-30_032.jpg)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 10-3

**Figure 10-2: Section View A-A' (azimuth 16°)**

![](ex99-30_033.jpg)

**Figure 10-3: Section View B-B' (azimuth 113°)**

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 10-4

**Figure 10-4: Section View C-C' (azimuth 127°)**

![](ex99-30_035.jpg)

10.2 Drilling
 Programs

Drills were operated by Maldonado Exploraciones of La Paz, Bolivia, Xplomine of Lima, Peru and Geodrill S.A. of La Serena, Chile. The surface and underground drilling was performed by drilling larger diameter HQ core at the early stage of the hole and reduced to NQ size if drilling conditions became difficult.

Drillhole collar surveys were completed using a differential GPS (UTM WGS-84) and the collars of the underground holes are surveyed in using total station by company survey staff. Downhole surveys were derived using either Tropary, Flexit or Reflex depending on the year and the drilling contractor.

The details for the surface and underground drilling program for the Porco Mine from 2010 to 2023 are summarized in Table 10-2.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 10-5

**Table 10-2: Porco Drilling Details from 2000 through January 2023**

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|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;<br> **Contractor / Company** | <br> **Phase** | <br> **Year** | <br> **# Holes** | <br> **Meters drilled** | &nbsp;&nbsp;&nbsp;&nbsp;**Downhole Survey Instrument Used** |
| &nbsp;&nbsp;**Surface** | &nbsp;&nbsp;**Surface** | &nbsp;&nbsp;**Surface** | &nbsp;&nbsp;**Surface** | &nbsp;&nbsp;**Surface** | &nbsp;&nbsp;**Surface** |
| &nbsp;&nbsp;Maldonado Exploraciones | I | 2000 | 7 | 2556 | Trópary |
| &nbsp;&nbsp;Maldonado Exploraciones | II | 2001 | 2 | 632 | Trópary |
| &nbsp;&nbsp;Maldonado Exploraciones | III | 2005-2006 | 25 | 12321.6 | Trópary |
| &nbsp;&nbsp;Geodrill | IV | 2007 | 10 | 3799.6 | Flexit |
| &nbsp;&nbsp;Geodrill | V | 2008 | 7 | 2414.2 | Flexit |
| &nbsp;&nbsp;Geodrill | VI | 2009 | 3 | 730 | Flexit |
| &nbsp;&nbsp;Geodrill | VII | 2010 | 6 | 2035.35 | Flexit |
| &nbsp;&nbsp;Xplomine | VIII | 2011 | 9 | 2799.55 | Flexit |
| &nbsp;&nbsp;Maldonado Exploraciones | IX | 2014 | 2 | 631 | Reflex |
| &nbsp;&nbsp;Maldonado Exploraciones | X | 2015 | 2 | 595 | Reflex |
| &nbsp;&nbsp;**Underground** | &nbsp;&nbsp;**Underground** | &nbsp;&nbsp;**Underground** | &nbsp;&nbsp;**Underground** | &nbsp;&nbsp;**Underground** | &nbsp;&nbsp;**Underground** |
| &nbsp;&nbsp;Maldonado Exploraciones | III | 2005-2006 | 10 | 3919 | Trópary |
| &nbsp;&nbsp;Geodrill | VI | 2009 | 5 | 1816 | Flexit |
| &nbsp;&nbsp;Maldonado Exploraciones | IX | 2014 | 8 | 1797 | Reflex |
| &nbsp;&nbsp;Maldonado Exploraciones | XI | 2017 | 17 | 2762 | Reflex |
| &nbsp;&nbsp;Maldonado Exploraciones | XII | 2018 | 8 | 1645 | Reflex |
| &nbsp;&nbsp;Maldonado Exploraciones | XIII | 2019 | 21 | 3407 | Reflex |
| &nbsp;&nbsp;Maldonado Exploraciones | XIV | 2020 | 35 | 6781 | Reflex |
| &nbsp;&nbsp;Maldonado Exploraciones | XV | 2022 | 26 | 5163 | Reflex |

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Prior to 2010, downhole survey measurements were taken every 50 m however since then, based on recommendations, the frequency was increased every 25 m. Downhole survey results were corrected for magnetic declination however in instances where pyrrhotite is encountered, this may occasionally cause downhole survey anomalies that require mitigation. These are identified by the geologist during the survey measurement process and corrected by taking another survey measurement above or below the point giving the faulty readings.

Prior to commencement of drilling, the exploration geology supervisor set out the number of runs needed to reach total depth using steel bars and the blocks to be inserted by the driller into the core boxes at the appropriate depth delineated using permanent marker. Unless issues are encountered, the standard drill run length is 3 m. Then the exploration geology supervisor verifies this process by counting the number of steel bars introduced in the hole against the remaining steel bars left to complete total length of hole. Completed core is placed in wooden core boxes which are covered by wooden lids and secured with metal nails prior to being transported by mine staff from drill site to core logging facility.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 10-6

For underground drillholes, orientations are marked before drill enters to drill site area, with the locations being measured using total station. The orientation of the drillhole is painted on both walls of the drift by the exploration geologist to insure correct alignment and positioning of the drill. Once the equipment mobilized and installed, the drill is leveled, and the direction is set. Finally, the dip is checked with a clinometer or compass.

Core recoveries were high, and by utilizing several drill core sizes, Glencore and Santacruz were able to ensure drillhole target completion. The majority of drillholes were drilled perpendicular to the strike and dip of the veining and therefore significantly represent true thickness of the veining.

There are no known drilling or core recovery factors that could materially impact the accuracy of these results.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 10-7

11 SAMPLE PREPARATION, ANALYSES AND SECURITY

11.1 Drillhole
 and Sub-Surface Sampling and Security

As reported in Section 10 Drilling, the surface and sub-surface diamond drilling was performed primarily by Maldonado Exploraciones, Xplomine and GeoDrill S.A. from 2000-2023. The surface diamond drilling is utilized primarily for resource expansion and delineation identify extensions of structures and specifically to define inferred resources. However, the sub-surface drift and slope development sampling is the primary and significant data source for defining and estimating resources which is performed by Santacruz geological staff.

Sampling methods and procedures are consistent including drill core handling, sample collection, chain-of-custody and security in addition to assay preparation, assay analysis and QA/QC procedures are consistent for Bolivar, Caballo Balance and Porco.

The secure, sealed core and channel samples are delivered by Santacruz mine staff for analysis to the ISO Certified (NB/ISO/IEC 17025: 2018) Don Diego assay laboratory which is located within the Don Diego mill and processing complex. The Don Diego Complex including the assay laboratory is owned and operated by the Issuer, Santacruz Silver. All samples undergo both assay preparation and assaying at the Don Diego laboratory which also employs industry accepted QA/QC programs.

All analytical results are entered and reside upon the centralized database called LIMS Laboratory Information Management System which is the responsibility and under the supervision of the Don Deigo laboratory staff. The assay information is provided to geological staff via live, non read-write access for import into the industry recognised geological modelling and estimation software systems such as LeapFrog<sup>TM</sup> and Datamine<sup>TM</sup>.

Sample rejects and remaining half-core is stored in a secure location and labelled for access and retrieval. These facilities are fully controlled by perimeter fencing and security on the property.

11.1.1 Drill
 Core Logging, Photography, Sampling and Security

Drill core from surface and underground was stored in wooden labelled boxes, from the drill and transported from the drill to the core logging facility. Before core splitting and logging commences, drill core is systematically photographed using tripod-mounted camera in high resolution and digitally archived for reference as part of the drill and sample database.

Logging and sampling were undertaken on site by company personnel under a QA/QC protocol developed by Glencore. Technicians first prepared the core boxes by reviewing drillhole depth tags, re-assembling broken sections, and mis-placed or mis-aligned core. Core is then washed and cleaned, then marked every meter using permanent marker. Core logging is performed to identify lithology, alteration, RQD, structure, mineralization and sampling selection for core sawing was completed by technicians under the direction of the geologist.

SANTACRUZ SILVER MINING LTD. \| PORCO TECHNICAL REPORT PAGE 11-1

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| ![](logo_001.jpg) | ![](ex99-30_020.jpg) |

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A digital photographic record was performed on each core box, with each photo containing two to a maximum of three boxes. These photos are taken with natural light and each box are marked with their general description, such as project, sample name, box number, and start and end depths.

The exploration geologist is responsible for marking core interval depending on interest structure in mineralization zones, from one to two meters. The typical sample lengths are 1.0 to 1.5 m with a minimum sample width of 1m and maximum lengths of approximately 2.0 m; sample lengths were based on the lithology and alteration. The geologist also marks the saw line along the core, with each side containing roughly an equivalent amount of mineralization, and also marks the start and end of each sample interval as shown in Figure 11-1. The technician records the core intervals entering then into an Excel<sup>TM</sup> spreadsheet.

**Figure 11-1: Example of Core Marked for Splitting**

![](ex99-30_036.jpg)

Technicians secure the sample boxes while they are transported to the dedicated enclosure for cutting. Samples cutting is performed by trained, specialized personnel equipped with appropriate personal protective equipment (PPE) operating a Target Portasaw<sup>TM</sup> brand diamond disc cutting machine as shown in Figure 11-2. This type of cutting machine is used because it allows the operator to safely split the core longitudinally with precision. It is also possible to make perpendicular cuts and to cut segments greater than 45 centimeter (cm) can be split.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 11-2

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**Figure 11-2: Core Splitting Facilities**

![](ex99-30_037.jpg)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 11-3

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Once the core is cut, half of the drill core is inserted into sample bags along with a sample ticket, tied with plastic straps and then placed in consecutive order according to sequential coding. Then, seven to ten samples are placed in rice bags, based on weight and not exceeding 25 kg. Then the rice sacks are grouped into batches and order maintaining as shown Figure 11-3.

**Figure 11-3: Samples Prepared for Analysis Transport**

![](ex99-30_038.jpg)

The samples are then delivered to the laboratory through an analysis request form which lists the required elements for reporting. The form also includes details about the quantity of samples sent, how many sacks they are transported in, and indicate if they are special samples as shown in Figure 11-4.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 11-4

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**Figure 11-4: Sample Submission Form**

![](ex99-30_039.jpg)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 11-5

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All core boxes that have completed the entire logging and sampling process are stored in the logging area sequentially. They are then transported to the permanent secured core storage facilities and then stored on covered metal shelves as shown in Figure 11-5. Each core box is labelled and coded for easy identification and access.

**Figure 11-5: Drill Core Storage Facilities**

![](ex99-30_040.jpg)

11.1.2 Sub-Surface
 Sampling and Logging

The sub-surface sampling is primarily performed within horizontal drift development in addition to face and stope development. Prior to entering the designated underground sampling areas, inspection is performed to ensure or establish adequate ventilation and to perform scaling to eliminate hazards. The structure is washed by pressure hose prior to sampling and the faces marked with white spray paint to delineate length and orientation of sampling transverses. Then a ladder is secured if samples are being taken from the back or at heights up the drift walls to insure safe access. Samples are the taken using a hammer and chisel, collected into an un-used sample bag. Alternatively, samples are collected onto a cleaned and washed tarp, or a specialized tarp lined sample collection pocket for transfer into sample bags.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 11-6

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Samples are collected from a 10 cm wide and at least 2 cm depth channel using the hammer and chisel by following the white painted markings. The sampling is performed as two person teams with one operating the hammer and chisel, and the other collected the rock and mineralized fragments. A new sample bag or freshly cleaned tarp is used for each sample. In the case where the sample width is greater than approximately one meter then more than one sample must be taken. For stope sampling, systematic samples are taken every four meters. These samples are split depending upon the structure being sampled and the character of the mineralization encountered as shown in Table 11-1. Samples are then introduced to a polyethylene bag with its sample number labeled, sample tag inserted and gathered for transport to the surface for delivery to the analytical laboratory by Santacruz staff of analysis.

**Table 11-1: Underground Sample Mineralization Codes**

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| | |
|:---|:---|
| **Code** | **Description** |
| BM | Mineralized Breccia |
| CM | Mineralization Stock |
| VM | Massive Vein |
| VB | Brecciated Vein |
| F | Fault |
| CM | Wall, back, floor, shoulder waste |
| FM | Mineralized Fault |

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11.2 Sample
 Preparation and Analysis

Samples were transported to the Don Diego laboratory, which is ISO-17025 accredited, for sample preparation and analysis where they are documented and entered to the Laboratory Information Management System (LIMS) for tracking and secure reporting of data and results. It is important to note that the Don Diego Laboratory is owned and operated by the Issuer, Santacruz, and the was owned and operated by Glencore prior to the purchase of all of the Sinchi Wayra operations.

Once received the samples are laid out for sample preparation which entails crushing and pulverizing the drill core down to 95% passing -140 µm. The resulting pulps are weighed and individually packaged into envelopes and loaded onto carts for assaying. The resulted prepared samples are then assayed for silver, lead, zinc and iron using an Atomic Absorption Spectroscopy (AAS) for silver, lead, zinc and iron followed by a Gravimetric finish for silver samples > 2100 g/t and Volumetric for lead > 16% and zinc > 20% as shown in Figure 11-6.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 11-7

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| ![](logo_001.jpg) | ![](ex99-30_020.jpg) |

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**Figure 11-6: Assay Methods Employed at the Porco Mine**

![](ex99-30_041.jpg)

Analytical results are provided via secure servers and pdf formatted assay certificates as shown in Figure 11-7.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 11-8

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**Figure 11-7: Example of Don Diego Laboratory Assay Certificate**

![](ex99-30_042.jpg)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 11-9

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Santacruz database files are stored and managed in Access and Excel<sup>TM</sup> formats before being transferred to LeapFrog<sup>TM</sup> and Datamine<sup>TM</sup> software.

All half-core is stored at a dedicated core storage facility that is locked and is within a fully controlled perimeter wall and fencing with security on the property.

11.3 QA/QC
 Procedures and Discussion of Results

The purpose of Quality Assurance and Quality Control (QA/QC) is to ensure that the laboratory procedures may be relied upon by guarding against sample contamination and test whether the equipment used to prepare the samples has been sufficiently cleaned between sequential assays. In addition, it is standard and highly recommended practice to insert additional "control" samples to continually test the precision and accuracy of the resulting analyses.

Since 2000, Sinchi Wayra has implemented QA/QC programs to varying degrees which employ industry standards and accepted practices for drillcore and channel sampling. This includes the regular insertion of blanks and standards randomly into the sample stream along with performing duplicate analysis of pulps and coarse rejects to assess analytical precision and accuracy. Additionally, beginning in 2012, the practice of including coarse and pulp duplicate QA/QC samples was employed.

Field blanks are non-mineralized material sourced locally and inserted into the sample series particularly preceding and following mineralization runs. Field blanks are inserted to test for any potential carry-over contamination which might occur in the crushing phase of sample preparation, because of laboratory poor cleaning practices.

Duplicate analysis of pulps and quarter-core are used to evaluate analytical precision and to determine if any biases exist between laboratories. Duplicate analysis of coarse rejects is used to analyze preparation error. Table 11-2 details the QA/QC sample insertion rate.

**Table 11-2: QA/QC Sample Insertion Rates**

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|:---|:---|
| **Sample Type** | &nbsp;&nbsp;**Notes** |
| Blanks | &nbsp;&nbsp;Usually inserted at the end of mineralized runs to measure carry-over |
| Pulp Duplicates | &nbsp;&nbsp;Undertaken at second laboratory with same analytical technique. High- and low- grade mineralized samples are usually chosen |
| Coarse Duplicates | &nbsp;&nbsp;Normally choose mineralized samples, used to measure laboratory sample preparation |

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In 2022, a total of 250 control samples within a sample population of as shown in Table 11-3 were assigned for QA/QC purposes and accounted for approximately 9% of total samples taken during the program.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 11-10

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| ![](logo_001.jpg) | ![](ex99-30_020.jpg) |

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**Table 11-3: Quantity of Control Samples by Type**

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|:---|:---|
| **Control Type** | **#** |
| Field Blanks | 83 |
| Coarse Duplicates | 85 |
| Pulp Duplicates | 82 |
| Total | 250 |

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Contamination and determining whether adequate cleaning practices are being performed at the laboratory is evaluated through the direct incorporation of sample blanks. Blank samples are do typically have some level of very low grade, background values depending upon where they are sourced from so the results should be at that value or within acceptable error (±) thresholds. The placement of blanks within the sample stream is typically in the middle of an identified mineralized structure or immediately at the end of the section or sample run. Figure 11-8 through Figure 11-10 show results show zero failures or 0% Failure rate for silver, lead and zinc indicating good cleaning practices and no background levels present.

**Figure 11-8: Plot of Ag g/t Values for Field Blanks**

![](ex99-30_043.jpg)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 11-11

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**Figure 11-9: Plot of Pb% Vaues for Field Blanks**![](ex99-30_044.jpg)

**Figure 11-10: Plot of Zn% Vaues for Field Blanks**

![](ex99-30_045.jpg)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 11-12

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Precision is a measure of reproducibility which is measured by introducing duplicate samples randomly into the sample stream. At the Porco mine, both coarse and pulp duplicates are performed in order to ensure appropriate levels of precision are being attained at the Don Diego laboratory facilities. Coarse duplicates entail taking a physical split of the sample at the sample collection stage and then including that duplicate blindly into the sample stream. Pulp duplicates entail taking a physical split of the sample at the culmination of the sample preparation stage at the laboratory and re-inserted into the sample stream.

Figure 11-11 through Figure 11-13 shows the comparative results for the original versus duplicate grades for silver, lead and zinc, respectively. Note that a ±10% relative difference threshold is denoted as a red line. Of the 85 coarse duplicate analyses, the results show excellent results with zero failures and zero warnings for a failure rate of 0%. These results show that the sample preparation stage is to high standards and that the samples possess excellent reproducibility.

**Figure 11-11: Plot of Coarse Reject Duplicates – Ag g/t**

![](ex99-30_046.jpg)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 11-13

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| ![](logo_001.jpg) | ![](ex99-30_020.jpg) |

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**Figure 11-12: Plot of Coarse Reject Duplicates – Pb%**

![](ex99-30_047.jpg)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 11-14

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| ![](logo_001.jpg) | ![](ex99-30_020.jpg) |

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**Figure 11-13: Plot of Coarse Reject Duplicates – Zn%**

![](ex99-30_048.jpg)

Figure 11-14 through Figure 11-16 shows the comparative results for the original versus duplicate grades for silver, lead and zinc pulp duplicates, respectively. Again, note that a ±10% relative difference threshold is denoted as a **red** line.

Of the 74 pulp duplicate analyses, the results show poor results with six silver failures and three warnings, three lead failures and four warnings and, one zinc failure and four warnings as shown in Figure 11-14 through Figure 11-16. It was reported that the reason for the failures was due to sample mix-up and mislabelling however as these failures occurred over time, this may not be the root cause. Therefore, further investigation is warranted and increase in the rate of pulp duplicate insertion particularly, blind insertion is recommended.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 11-15

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| ![](logo_001.jpg) | ![](ex99-30_020.jpg) |

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**Figure 11-14: Plot of Pulp Duplicates – Ag g/t**

![](ex99-30_049.jpg)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 11-16

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| ![](logo_001.jpg) | ![](ex99-30_020.jpg) |

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**Figure 11-15: Plot of Pulp Duplicates – Pb%**

![](ex99-30_050.jpg)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 11-17

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| ![](logo_001.jpg) | ![](ex99-30_020.jpg) |

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**Figure 11-16: Plot of Pulp Duplicates – Zn%**

![](ex99-30_051.jpg)

In summary, the quality assurance and quality practices and methods employed are reasonable and produce relatively good results although issues should be investigated to insure reliability or results. Recommendations with respect to the QA/QC sample selections that the company should investigate obtaining Certified Reference Material form an outside accredited source for blanks, particularly barren blanks, and for specific Ag, Pb, Zn standards.

The LIMS system is widely used and accepted at the laboratory while interfaces to users are automated and trusted. The system is also highly secure which is critical in ensuring that data is not tampered with or prone to inadvertent error however, this also makes it difficult to access, review and report data externally. In addition, reporting functions are relatively dated and system upgrades should be investigated, and some additional customization would also be desirable.

11.4 QP
 Statement

It is the opinion of the QP, Garth Kirkham, P.Geo., that the sampling preparation, security, analytical procedures and quality control protocols used by Santacruz are consistent with generally accepted industry best practices and therefore reliable for the purpose of resource estimation.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 11-18

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12 DATA VERIFICATION

12.1 Verifications
 by the Authors of this Technical Report

The following details the data verification performed by the Qualified Persons for the completion of this Technical Report. Verification activities were performed on sampling methods and results, assay database, geological interpretation and lithological models, resource estimation procedures, models and results, metallurgy and processing, mining design and dilution, along with reserves models and results.

Multiple site visits were conducted by the QPs, as detailed in Section 2: Introduction.

There have been no limitations or failures to conduct data verification that were identified by the QPs in the preparation of this Technical Report.

12.1.1 Site
 Visit & Verification

The purpose of these visits is to fulfill the requirements specified under NI 43-101, to gain familiarization with the property, to validate the existence, location, extent and the mineralization and deposits. In addition, the site visits are an important component for verification of all information and data being submitted by the company for inclusion into the NI43-101 technical report including sample data, geology, QA/QA procedures and mineral resource models and results. These site visits consisted of underground tours of non-mineralized development headings, sampling, storage areas and existing infrastructure. In addition to gathering on-site data and reports, performing interviews, walking through procedures, and investigating areas of discrepancy, the identification and collection of independent verification data such as samples are all critical activities that make up a site visit.

Prior to the site visits, the author reviewed all collected data sources and reports. The primary sources of data for inspection were the drillhole and underground channel sample data, related assay data, QA/QC data and analyses, assay certificates and LIMS databases. In addition, internal company reports and demonstrations were provided detailing the methods and procedures for sample collection, handling and chain-of-custody, QA/QC procedures and results, and resource estimation methods and reporting.

The QP, Garth Kirkham, P.Geo., visited the property between August 10 through August 13, 2021 and March 15 through March 30, 2023. The site visit included an inspection of the property, offices, underground operations, core storage facilities, and tours of major centres and surrounding villages most likely to be affected by any potential mining operation.

The August 2021 site visit performed by the QP to support the Technical Report dated December 17, 2021 included a tour of the offices, core logging, and storage facilities which showed clean, well-organized, professional environments. Santacruz geological staff and on-site personnel led the QP through the chain of custody and methods used at each stage of the logging and sampling process. All methods and processes are to common industry standards and common best practices, and no issues were identified. The 2021 site visit also entailed attending all operations including the Boliva miner, Porco Mine and the Caballo Blanco complex which included separate attendance to the Tres Amigos, Colquechaquita and Reserva mines. Visits to the underground operations showed extensive, on-going mining operations. In addition, the tour included tours through the Don Diego Milling and Processing Complex along with the sample storage facilities.

SANTACRUZ SILVER MINING LTD. \| PORCO TECHNICAL REPORT PAGE 12-1

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The tour of the property showed a clean, well-organized, professional environment. On-site staff led the author through the methods used at each stage of the resource estimation process. All methods and processes are up to industry standards and reflect leading practices, and no issues were identified.

12.1.2 Sample
 Database Verification

Verification of the Porco drillhole and underground sample assay database was primarily focused on silver, lead and zinc in addition to iron, arsenic, sulphur and tin. Sample databases were supplied in Excel<sup>TM</sup> format and in LeapFrog<sup>TM</sup>. Checks against source data and assay certificates showed agreement. Statistical analyses used to investigate and identify errors were performed and resulted in minor issues. These have been corrected and it is recommended that a continued program of random "spot checking" the database against assay certificates be employed.

12.1.3 Independent
 Sampling

No verification samples were taken during the 2021 site visit due to severe limitations on transport of materials due to COVID at that time. In addition, the 2021 site visit was performed in support of the Technical Report which did not include a resource estimate and was performed prior to transfer of ownership of all properties from Glencore and Santacruz.

The 2023 site visit included a visit of the Don Diego mill complex which included a tour of the Don Diego laboratory which included an extensive review of the methods and procedures along with gathering appropriate documentation for reporting.

Also, during the 2023 site visit, an extensive independent sampling verification plan was implemented with a total of 80 samples collected across from the Bolivar, Porco and Caballo Blanco operations. The Don Diego laboratory is an NB/ISO/IEC 17025:2018 accredited laboratory which performs all assay analyses for the mining and processing operations for Sinchi Wayra including Porco.

In order to ensure reliability of results particularly as the data is being used for resource estimation purposes with this Technical Report, independent verification duplicate samples are sent to an accredited external umpire laboratory. These verification samples were secured and transported to SGS Peru for analysis and comparison. SGS Peru is a well-established certified assay laboratory that possess and maintains ISO 14000 accreditation. Individual samples were placed in plastic bags with a uniquely numbered tag, after which all samples were collectively placed in a larger bag and delivered by independent transport to the SGS laboratory in Lima Peru for analysis. The selection was a combination of acid digestion and Induced Coupled-Plasma Atomic Emission Spectroscopy (ICP) along with screening and hydroxide precipitation for overlimit values.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 12-2

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A total of 14 samples which were comprised of 5 coarse duplicates and 9 pulp duplicates were sent for independent analysis as shown in Table 12-1.

**Table 12-1: Porco Independent Verification Sampling**

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Sample** | **Ag ppm** | **As ppm** | **Cu ppm** | **Fe%** | **Pb%** | **S%** | **Sn ppm** | **Zn%** |
| 107113 | 63 | 1183 | 192 | >15 | 2.34 | 38.89 | 159 | 6.04 |
| 107115 | 23 | 5726 | 473.1 | >15 | 0.06 | >40 | 298 | 5.91 |
| 107117 | 767 | >10000 | 1.64 | >15 | 1.42 | >40 | >10000 | 13.64 |
| 107119 | 42 | 1371 | 2023.9 | 11.26 | 0.53 | 36.62 | 187 | 49.52 |
| 107121 | 596 | 1101 | 650.9 | 13.22 | 0.77 | 22.88 | 529 | 24.87 |
| 104780 | 58 | 119 | 800.3 | 12.25 | 0.17 | 31.8 | 245 | 37.46 |
| 104793 | 10 | 246 | 29.8 | 11.38 | 0.06 | 14.32 | 55 | 1.05 |
| 95114 | 74 | 6144 | 510.7 | >15 | 0.58 | >40 | 219 | 21.57 |
| 95139 | 45 | 748 | 2157.3 | >15 | 0.28 | 39.33 | 182 | 27.37 |
| 95158 | 13 | 212 | 95.8 | >15 | 0.01 | 26.43 | 37 | 5.00 |
| 95181 | 153 | 7977 | 1.015 | >15 | 0.08 | >40 | 6210 | 6.20 |
| 104864 | 18 | 1631 | 52.9 | 4.43 | 0.32 | 6.24 | 108 | 6.43 |
| 104883 | 460 | >10000 | 1.129 | >15 | 0.06 | >40 | 8283 | 11.65 |
| 106716 | 124 | 8852 | 497.3 | >15 | 4.12 | 27.65 | 431 | 12.09 |

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Results of the verification samples are presented in Figure 12-1 through Figure 12-3 for silver, lead and zinc, respectively. In all cases, the correlation between the original source Don Diego assay data and that of the duplicate SGS umpire analyses, are perfect as evidenced by the respective R2 being 1. R2 is a measure of the goodness of fit of a model. In regression, the R2 coefficient of determination is a statistical measure of how well the regression predictions approximate the real data points. This sentence is inserted to confirm if this report has been reviewed, please confirm. An R2 of 1 indicates that the regression predictions perfectly fit the data.

Although, these results are not a complete audit of the laboratory, they do verify that the assay results are suitable for resource estimation purposes.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 12-3

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**Figure 12-1: Results of Independent Verification Sampling for Ag g/t**

![](ex99-30_052.jpg)

**Figure 12-2: Results of Independent Verification Sampling for Pb%**

![](ex99-30_053.jpg)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 12-4

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**Figure 12-3: Results of Independent Verification Sampling for Zn%**

![](ex99-30_054.jpg)

12.1.4 Geological
 Model Verification

The geological and lithological solid domain models were supplied by Santacruz in both Datamine<sup>TM</sup> and LeapFrog<sup>TM</sup> which are both industry-leading software systems. The QP imported the multiple vein domains into a similar system called MineSight<sup>TM</sup> to verify solids volumes and ensure matching of the solids domains against the drillhole and sample database. Results confirmed location and extent of volumes are appropriate to resource estimation purposes.

12.1.5 Resource
 Estimation Verification

Resource block models were supplied in Datamine<sup>TM</sup> format which is an industry recognized software system used for resource estimation. These models were then imported to MineSight<sup>TM</sup> for verification of the resource estimation. In addition, independent estimations were run using the verified sample data and vein domains employing inverse distance estimations to ensure reasonableness and verify the resources independently. Results illustrated good agreement between the original and verification models.

Verification of the SG regression analysis was also performed by comparing measured versus calculated density values.

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12.1.6 Conclusions

The QP is confident that the data and results are valid based on the site visits and inspection of all aspects of the project, including the methods and procedures used. It is the opinion of the QP that all work, procedures, and results have adhered to best practices and industry standards as required by NI 43-101.

12.1.7 Adequacy
 Statement

It is the opinion of Kirkham that the data used for estimating the current mineral resources for the Porco Mine is adequate for this Resource Estimate and may be relied upon to report the mineral resources contained in this report.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 12-6

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13 MINERAL PROCESSING AND METALLURGICAL TESTING

The processing plant at the Porco Mine has been in continuous production since it was built in 1992. The Porco process uses differential flotation to a lead and a zinc concentrate. The mill processes feed from both the company mined deposit and toll material.

The processing plant targets approximately 45% of the feed to be toll feed, due to the prevalence of artisanal miners in the area. The artisanal miners can loosely be separated into "legal" (Cooperatives), and "illegal" (or documented and undocumented) groups. The Porco mill only receives feed from the "legal" artisanal miners.

13.1 Company
 Feed Processing

Data from August 2020 to July 2021 was used to develop the expected metallurgical performance of the Porco mill. This data was used to determine throughput, recovery and concentrate grade relationships. The results will be discussed in the upcoming sections.

13.1.1 Mill
 Throughput

The expected availability for the mill is 95.5% and the utilization is 95% for an expected operating time of 90.7%. The actual throughput from August 2020 to July 2021 can be found in Figure 13-1.

SANTACRUZ SILVER MINING LTD. \| PORCO TECHNICAL REPORT PAGE 13-1

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**Figure 13-1: Porco Mill Company Feed Throughput 2020/2021**

![](ex99-30_055.jpg)

The throughput of company feed through the Porco mill during the analyzed period was a little lower than the stated target, with the average of the days it operated being 904 t/d. During the analyzed period, the mill ran company feed over 91 whole or partial days and processed 82,290 tonnes of feed. The data suggests that the feed rate is not achieving the target throughput for company feed.

The target grind for the Porco plant has a P80 of 100 µm.

13.1.2 Feed
 Grades

For the period examined, the unreconciled feed grades for the company feed were 7.82% zinc, 0.67% lead, and 124 g/t silver. The feed was somewhat variable with standard deviations of 1.05, 0.20, and 67.94 for zinc, lead, and silver respectively. These values fall within the expected ranges for Porco feed. The unreconciled feed grades can be seen in Figure 13-2 through Figure 13-4.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 13-2

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**Figure 13-2: Zinc Feed Grade 2020/2021**

![](ex99-30_056.jpg)

**Figure 13-3: Lead Feed Grade 2020/2021**

![](ex99-30_057.jpg)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 13-3

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**Figure 13-4: Silver Feed Grade 2020/2021**

![](ex99-30_058.jpg)

The mill feed grades are measured at the lead circuit flotation feed or also known as the cyclone overflow.

13.1.3 Lead
 Production

The lead concentrate produced during evaluated period measured 844 t which represents 1.03% of the feed to the plant.

The average grade of the lead concentrate was 51.27% lead, 11.77% zinc, and 6,480 g/t silver. The recoveries to the lead concentrate were 77.56%, 49.79%, and 1.50% for lead, silver, and zinc respectively.

The relationship between the lead feed grade and the lead recovery to the lead concentrate can be seen in Figure 13-5. While there is some variability, especially in the lower lead feed grades, a clear relationship can be seen between lead feed grade and recovery to the lead concentrate.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 13-4

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**Figure 13-5: Mill Lead Concentrate Recovery vs. Lead Feed Grade**

![](ex99-30_059.jpg)

From the above analysis, the recovery relationship for lead to the lead concentrate will be considered: 12.46\*(Lead feed grade %) + 68.98.

The silver recovery to both the lead and zinc concentrates is a byproduct of the flotation process; the silver is associated with the lead and zinc minerals and follows them into the concentrates. The recovery of silver to the lead concentrate can be seen in Figure 13-6, In this case, the silver recovery appears to be correlated to the silver grade in the feed (although the relationship is weak) and therefor the relationship of 0.0919\*(Silver feed grade %) + 37.743 will be used for this report.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 13-5

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**Figure 13-6: Silver Recovery to the Lead Concentrate vs. Mill Feed Silver Grade**

![](ex99-30_060.jpg)

13.1.4 Zinc
 Production

The lead rougher and cleaner tailings report to the zinc circuit conditioning tanks where copper sulphate and additional collector and frother are added to float a zinc concentrate, with silver. The zinc concentrate accounts for approximately 14.87% of the feed mass.

Over the period analyzed, the unreconciled zinc concentrate production was 12,240 t with average grades of 49.81% zinc, 0.39% lead, and 273 g/t silver. The recoveries to the zinc concentrate were 94.78, 35.24, and 8.78 for zinc, silver, and lead respectively.

The zinc recovery as a function of the feed grade was examined and found to be a poor relationship for determining expected zinc recovery to the zinc concentrate as can be seen in Figure 13-7. It was determined in this case that the best option was to assign a zinc recovery to the zinc concentrate of 93%, which is the average value over the period examined.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 13-6

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**Figure 13-7: Zinc Recovery to the Zinc Concentrate vs. Mill Feed Zinc Grade**

![](ex99-30_061.jpg)

The silver recovery to the zinc concentrate can be seen in Figure 13-8. In this case, the recovery has a negative relationship to the feed grade, presumably due to the positive correlation that the silver recovery to the lead concentrate has with the silver feed grade. The relationship for the silver recovery to the zinc concentrate will be taken as -0.0957 x (Silver Feed Grade) + 47.874.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 13-7

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**Figure 13-8: Silver Recovery to the Zinc Concentrate vs. Mill Feed Silver Grade**

![](ex99-30_062.jpg)

13.2 Toll
 Feed Processing

Data from the same time period, August 2020 to July 2021, was used to develop the expected metallurgical performance of the Porco mill on toll feed. As was the case for the company feed, the data was used to determine throughput, recovery and concentrate grade relationships.

13.2.1 Mill
 Throughput

As with the company feed, the expected availability for the mill is 95.5% and the utilization is 95% for an expected operating time of 90.7% for the toll feed. A summary of the throughput from August 2020 to July 2021 can be found in Figure 13-9.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 13-8

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**Figure 13-9: Porco Mill Toll Feed Throughput 2020/2021**

![](ex99-30_063.jpg)

The throughput of company feed through the Porco mill during the analyzed period was slightly lower than the stated target, with the average of the days it operated being 792.44 t/d. During the analyzed period, the mill ran company feed over 194 whole or partial days and processed 153,733 t of feed. The data suggests that the feed rate is slightly below the target throughput for toll feed.

The target grind for the Porco plant toll feed has a P80 of 100 µm.

13.2.2 Feed
 Grades

For the period examined, the unreconciled feed grades for the company feed were 11.92% zinc, 1.40% lead, and 144 g/t silver. The feed was somewhat variable with standard deviations of 1.75, 0.37, and 33.78 for zinc, lead, and silver respectively. These values fall within the expected ranges for Porco toll feed. The unreconciled feed grades can be seen in Figure 13-10 through Figure 13-12.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 13-9

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**Figure 13-10: Toll Feed Zinc Grade 2020/2021**

![](ex99-30_064.jpg)

**Figure 13-11: Toll Feed Lead Grade 2020/2021**

![](ex99-30_065.jpg)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 13-10

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**Figure 13-12: Toll Feed Silver Grade 2020/2021**

The toll feed head grades were measured in the same location as the company feed.

13.2.3 Lead
 Production

The toll feed utilizes the same reagents as the company feed, in similar dosages. The lead concentrate produced during evaluated period measured 2,912 t which represents 1.89% of the feed to the plant.

The average grade of the lead concentrate was 56.37% lead, 12.54% zinc, and 2,902 g/t silver. The recoveries to the lead concentrate were 75.4%, 37.82%, and 1.95% for lead, silver, and zinc respectively.

The relationship between the lead feed grade and the lead recovery to the lead concentrate can be seen in Figure 13-13. The recovery relationship for lead to the lead concentrate was determined to be: 8.28\*(Lead feed grade %) + 63.58.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 13-11

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**Figure 13-13: Mill Lead Concentrate Recovery vs. Lead Feed Grade**

The silver recovery to both the lead and zinc concentrates is a byproduct of the flotation process; the silver is associated with the lead and zinc minerals and follows them into the concentrates. The recovery of silver to the lead concentrate can be seen in Figure 13-14, In this case the silver recovery appears to be uncorrelated to the silver grade in the toll feed and therefore a silver recovery of 32, which is the average of the toll feed silver recovery to the lead concentrate, will be used.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 13-12

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**Figure 13-14: Silver Recovery to the Lead Concentrate vs. Mill Feed Silver Grade**

13.2.4 Zinc
 Production

Over the period analyzed, the unreconciled zinc concentrate production was 33,898 t with average grades of 50.73% zinc, 0.56% lead, and 311 g/t silver. The recoveries to the zinc concentrate were 93.79%, 47.68%, and 8.96% for zinc, silver, and lead respectively. The higher lead in the zinc concentrate is due to the low recovery of lead to the lead concentrate.

The zinc recovery as a function of the feed grade was examined and found to be similarly poor for determining expected zinc recovery to the zinc concentrate as with the company feed. This relationship can be seen in Figure 13-15. The relationship used for the purposes of this report for the zinc recovery to the zinc concentrate is 86.0.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 13-13

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 **Figure 13-15: Zinc Recovery to the Zinc Concentrate vs. Mill Feed Zinc Grade**

![](ex99-30_069.jpg)

The average silver recovery to the zinc concentrate is approximately recovery of 47.68%. The recovery of silver to the zinc concentrate, with the stated adjustments, can be seen in Figure 13-16, As with the lead concentrate, the silver recovery to the zinc concentrate appears to have a poor correlation to the silver grade in the toll feed. A silver recovery of 50% to the zinc concentrate, which was the average for the data, was chosen for this report.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 13-14

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 **Figure 13-16: Silver Recovery to the Zinc Concentrate vs. Mill Feed Silver Grade**

13.3 Metallurgical
 Assumptions

The metallurgical assumptions for recoveries and concentrate grades can be found in Table 13-1. The recoveries for each of the metals to each of the concentrates is expressed as a function of the feed grade, or as a constant recovery in the case where a relationship was not determined by the data.

**Table 13-1: Recovery and Concentrate Grade Estimates**

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|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;<br>**Parameter** | **Concentrates** | **Concentrates** | **Concentrates** | **Concentrates** |
| &nbsp;&nbsp;&nbsp;&nbsp;<br>**Parameter** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Lead Concentrate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Lead Concentrate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Zinc Concentrate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Zinc Concentrate** |
| &nbsp;&nbsp;&nbsp;&nbsp;<br>**Parameter** | **Company Feed** | **Toll Feed** | **Company Feed** | **Toll Feed** |
| &nbsp;&nbsp;Zn Recovery% | N/A | N/A | 93 | 86 |
| &nbsp;&nbsp;Pb Recovery% | &nbsp;&nbsp;&nbsp;&nbsp;12.46\*(Lead feed grade %) + 68.98 | &nbsp;&nbsp;&nbsp;&nbsp;8.28\*(Lead feed grade %) + 63.58 | N/A | N/A |

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|:---|:---|:---|:---|:---|:---|
| | | **Concentrates** | **Concentrates** | **Concentrates** | **Concentrates** |
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Lead Concentrate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Lead Concentrate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Zinc Concentrate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Zinc Concentrate** |
| <br>&nbsp;&nbsp;&nbsp;&nbsp;**Parameter** | <br>**Unit** | **Company Feed** | **Toll Feed** | **Company Feed** | **Toll Feed** |
| &nbsp;&nbsp;Ag Recovery | % | &nbsp;&nbsp;&nbsp;0.919 x (Silver Feed Grade) + 37.743 | 32 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0.0957 x (Silver Feed Grade) + 47.874 | 50 |
| &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** | &nbsp;&nbsp;**Concentrate Grade** |
| &nbsp;&nbsp;Zn | % | 12 | 12 | 50 | 50 |
| &nbsp;&nbsp;Pb | % | 51 | 56 | 0.39 | 0.55 |
| &nbsp;&nbsp;Ag | g/t | 6480 | 2900 | 273 | 310 |

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PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 13-16

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14 MINERAL RESOURCE ESTIMATE

14.1 Introduction

The purpose of this report is to document the resource estimations for the Porco deposit. This section describes the work undertaken by Kirkham Geosystems, including key assumptions and parameters used to prepare the mineral resource models for Porco which herein to be reporting using zinc-equivalent (ZnEq) cut-offs based upon updated commodity pricing and actual operating costs.

In addition, this Technical Report serves as a first-time disclosure for mineral resources for the Porco deposit, together with appropriate commentary regarding the merits and possible limitations of such assumptions.

14.2 Data

The 205 drillholes and 30,348 underground channels in the database were supplied in electronic format by Santacruz. This included collars, downhole surveys, lithology data and assay data (i.e., Ag g/t, Pb%, Zn%, Fe%). Table 14-1 lists that individual data file statistics. Validation and verification checks were performed during importation of data to ensure there were no overlapping intervals, typographic errors or anomalous entries. Anomalies and errors were validated and corrected. Figure 14-1 shows a plan view of the supplied drillholes and underground channel samples.

**Table 14-1: Data File Statistics**

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|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Collar** | **Survey** | **Assay** | **Zinc** | **Lead** | **Silver** | **Iron** |
| # | 30543 | 31288 | 36184 | 36184 | 36184 | 36184 | 6327 |

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SANTACRUZ SILVER MINING LTD. \| PORCO TECHNICAL REPORT PAGE 14-1

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**Figure 14-1: Plan View of Porco Drillholes**

14.3 Geology
 Model

Solid models (Figure 14-2 through Figure 14-4) were created from sections and based on a combination of lithology, grades and site knowledge. It is important to note that the Porco Mine has been producing for many years which means that a great deal is known about the mineralized structures such then there is a high level of confidence in the location, orientation, and dimensions of the modelled geological domains.

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**Figure 14-2: Plan View of Porco Mineralized Zones and Drillholes**

**Figure 14-3: Section View of Porco Mineralized Zones and Drillholes Looking South**

![](ex99-30_074.jpg)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-3

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**Figure 14-4: Long Section View of Porco Mineralized Zones and Drillholes Looking West**

All zones were modelled based on current drilling and assay data using LeapFrog<sup>TM</sup> and then imported into MineSight<sup>TM</sup> for interpretation and refinement. Intersections were inspected, and the solids were then manually adjusted to match the drill intercepts. Once the solid models were created, they were used to code the drillhole assays and composites for subsequent statistical and geostatistical analysis. The solid zones were used to constrain the block model by matching assays to those within the zones. The orientation and ranges (distances) used for search ellipsoids in the estimation process were derived from strike and dip of the mineralized zone, site knowledge and on-site observations by Santacruz geological staff.

14.4 Data
 Analysis

Each of the veins within the Porco deposit are identified and individually numerically coded as shown in Table 14-2.

**Table 14-2: Vein Codes and Names for the Porco Deposit**

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|:---|:---|:---|
| **Area** | **Code** | **Vein or Vein Group** |
| <br>Hundimiento | 2000 | Camila |
| <br>Hundimiento | 2001 | Ramo Camila |
| <br>Hundimiento | 2010 | Colorada |
| <br>Hundimiento | 2011 | Karlita |

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|:---|:---|:---|
| **Area** | **Code** | **Vein or Vein Group** |
|  | 2020 | Colorada Uno |
|  | 2030 | PE |
|  | 2040 | Hundimiento |
| <br>Central | 2050 | California |
| <br>Central | 2060 | H_6 |
| <br>Central | 2061 | H_6_C |
| <br>Central | 2064 | H_6_H |
| <br>Central | 2070 | Ramo_H6 |
| <br>Central | 2075 | Crucera 22 |
| <br>Central | 2077 | Crucera Dos |
| <br>Central | 2080 | Pamela |
| <br>Central | 2082 | Larga |
| <br>Central | 2085 | Pobre Rico 3 |
| <br>Central | 2086 | Sapi |
| <br>Central | 2088 | Cuadro |
| <br>Central | 2090 | San Antonio Principal |
| <br>Central | 2095 | Aurora |
| <br>Central | 2101 | Sap N |
| <br>Central | 2110 | Ramo 1 Solidad |
| <br>Central | 2120 | Crucera B |
| <br>Central | 2140 | Elena |
| <br>Central | 2141 | Ramo Elena |
| <br>Central | 2142 | Rosario |
| <br>Central | 2143 | Cecilia |
| <br>Central | 2145 | Carla |
| <br>Central | 2147 | Carla 2 |
| <br>Central | 2155 | Ramo Carla |

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Once the database was the numerically coded using these individual mineralized solids, a statistical analysis was performed. Table 14-3 through Table 14-5 shows the simple statistics for the zinc, lead and silver assays by vein, respectively. Note that the zinc assays within all the vein domains possess a relatively low degree of variability which is evidenced by the low Coefficient of Variation (CV) which is a unit independent quantitative measure of variability.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-5

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**Table 14-3: Statistics for Zinc by Vein**

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Area** | **Code** | **Min** | **Max** | **Mean** | **1Q** | **Median** | **3Q** | **SD** | **CV** |
| <br>Hundimiento | 2000 | 0.04 | 51.94 | 17.26 | 8.40 | 16.42 | 25.30 | 11.03 | 0.6 |
| <br>Hundimiento | 2010 | 0 | 52.67 | 12.35 | 2.79 | 10.24 | 19.39 | 10.91 | 0.9 |
| <br>Hundimiento | 2011 | 0.22 | 44.25 | 20.87 | 10.83 | 21.57 | 30.06 | 12.51 | 0.6 |
| <br>Hundimiento | 2012 | 0.11 | 38.39 | 14.34 | 9.32 | 14.13 | 21.14 | 8.78 | 0.6 |
| <br>Hundimiento | 2020 | 0.01 | 51.5 | 13.88 | 4.97 | 12.06 | 20.54 | 10.69 | 0.8 |
| <br>Hundimiento | 2030 | 0.06 | 62.78 | 20.52 | 9.09 | 18.56 | 29.35 | 13.58 | 0.7 |
| <br>Hundimiento | 2040 | 0 | 89.77 | 12.05 | 4.56 | 10.41 | 17.10 | 9.53 | 0.8 |
| <br>Central | 2050 | 0 | 53.6 | 11.15 | 3.40 | 8.87 | 16.79 | 9.59 | 0.9 |
| <br>Central | 2060 | 0.01 | 44.87 | 7.29 | 1.80 | 4.97 | 10.75 | 7.30 | 1 |
| <br>Central | 2061 | 0 | 41.57 | 11.36 | 4.43 | 10.20 | 16.58 | 8.09 | 0.7 |
| <br>Central | 2062 | 4.79 | 48.12 | 26.68 | 15.27 | 23.64 | 38.68 | 12.90 | 0.5 |
| <br>Central | 2065 | 11.9 | 38.36 | 17.88 | 12.05 | 12.05 | 12.05 | 10.95 | 0.6 |
| <br>Central | 2070 | 0.11 | 54.55 | 18.07 | 10.07 | 15.88 | 23.43 | 11.17 | 0.6 |
| <br>Central | 2075 | 0.14 | 30.49 | 9.37 | 4.30 | 7.73 | 11.05 | 6.84 | 0.7 |
| <br>Central | 2077 | 0.01 | 48.29 | 8.58 | 2.10 | 5.55 | 11.24 | 9.21 | 1.1 |
| <br>Central | 2078 | 0.73 | 35.88 | 19.11 | 15.65 | 20.99 | 22.22 | 8.26 | 0.4 |
| <br>Central | 2080 | 0 | 60.06 | 12.92 | 4.17 | 10.39 | 19.52 | 10.69 | 0.8 |
| <br>Central | 2082 | 0.01 | 48.65 | 12.61 | 3.89 | 9.77 | 19.50 | 10.67 | 0.8 |
| <br>Central | 2085 | 0.01 | 45.36 | 9.46 | 4.10 | 8.25 | 12.77 | 7.24 | 0.8 |
| <br>Central | 2086 | 1.05 | 37.39 | 10.81 | 7.37 | 9.82 | 14.21 | 6.20 | 0.6 |
| <br>Central | 2088 | 0.01 | 44.75 | 8.04 | 2.57 | 6.27 | 11.31 | 7.28 | 0.9 |
| <br>Central | 2090 | 0 | 57.76 | 14.42 | 4.24 | 11.42 | 21.72 | 12.42 | 0.9 |
| <br>Central | 2095 | 0.01 | 47.16 | 11.46 | 3.76 | 8.97 | 17.48 | 9.45 | 0.8 |
| <br>Central | 2101 | 16.4 | 20.72 | 17.80 | 16.39 | 16.39 | 20.72 | 2.03 | 0.1 |
| <br>Central | 2110 | 0 | 55.15 | 15.07 | 2.81 | 12.37 | 25.11 | 13.09 | 0.9 |
| <br>Central | 2120 | 0.02 | 43.85 | 13.11 | 5.18 | 11.34 | 19.09 | 9.79 | 0.7 |
| <br>Central | 2140 | 0 | 58.73 | 16.51 | 5.44 | 13.54 | 25.67 | 12.99 | 0.8 |
| <br>Central | 2141 | 0 | 58.9 | 20.32 | 11.86 | 18.52 | 26.55 | 12.03 | 0.6 |
| <br>Central | 2142 | 0.23 | 55.22 | 26.41 | 18.50 | 27.14 | 34.96 | 11.32 | 0.4 |
| <br>Central | 2143 | 0.09 | 55.01 | 18.50 | 7.95 | 15.67 | 28.07 | 13.53 | 0.7 |
| <br>Central | 2145 | 0.06 | 54.52 | 24.88 | 15.09 | 25.09 | 34.89 | 12.82 | 0.5 |
| <br>Central | 2146 | 0.5 | 36.84 | 12.69 | 5.72 | 10.92 | 19.33 | 8.07 | 0.6 |
| <br>Central | 2147 | 2.86 | 43.26 | 25.09 | 16.99 | 26.67 | 33.48 | 10.80 | 0.4 |

---

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-6

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| ![](logo_001.jpg) | ![](ex99-30_020.jpg) |

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Area** | **Code** | **Min** | **Max** | **Mean** | **1Q** | **Median** | **3Q** | **SD** | **CV** |
|  | 2155 | 0.06 | 48.13 | 7.21 | 0.20 | 2.40 | 4.36 | 11.78 | 1.6 |
|  | Total | 0 | 89.77 | 13.54 | 4.44 | 10.92 | 19.95 | 11.25 | 0.8 |
|  | All | 0 | 89.77 | 12.81 | 3.26 | 9.93 | 19.27 | 11.49 | 0.9 |

---

In contrast to zinc, the lead and silver assays exhibit a higher level of variability in a significant number of the veins. Therefore, it is prudent to ensure that extremely high grades do not unduly over-influence the resource as a whole. So, the goal of compositing and grade cutting will be to temper the effect of extreme grades so as not to spread or smear beyond reasonable distances.

**Table 14-4: Statistics for Lead by Vein**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Area** | **Code** | **Min** | **Max** | **Mean** | **1Q** | **Median** | **3Q** | **SD** | **CV** |
| <br>Hundimiento | 2000 | 0.01 | 30 | 0.75 | 0.15 | 0.31 | 0.67 | 1.66 | **2.2** |
| <br>Hundimiento | 2010 | 0 | 37.93 | 1.48 | 0.20 | 0.58 | 1.73 | 2.71 | 1.8 |
| <br>Hundimiento | 2011 | 0.11 | 37.98 | 3.48 | 0.68 | 1.86 | 3.86 | 6.36 | 1.8 |
| <br>Hundimiento | 2012 | 0.04 | 13.92 | 0.64 | 0.05 | 0.11 | 0.30 | 1.99 | **3.1** |
| <br>Hundimiento | 2020 | 0 | 41.98 | 1.74 | 0.22 | 0.74 | 1.90 | 3.26 | 1.9 |
| <br>Hundimiento | 2030 | 0 | 68.21 | 2.41 | 0.37 | 1.14 | 2.66 | 3.75 | 1.6 |
| <br>Hundimiento | 2040 | 0 | 41.71 | 0.72 | 0.16 | 0.34 | 0.68 | 1.64 | **2.3** |
| <br>Central | 2050 | 0 | 51.25 | 1.30 | 0.15 | 0.44 | 1.26 | 2.89 | **2.2** |
| <br>Central | 2060 | 0 | 18.44 | 0.94 | 0.15 | 0.36 | 1.06 | 1.63 | 1.7 |
| <br>Central | 2061 | 0 | 12.12 | 1.97 | 0.50 | 1.11 | 2.40 | 2.38 | 1.2 |
| <br>Central | 2062 | 0.04 | 2.39 | 0.35 | 0.11 | 0.21 | 0.37 | 0.47 | 1.3 |
| <br>Central | 2065 | 0.01 | 0.39 | 0.10 | 0.01 | 0.01 | 0.22 | 0.14 | 1.3 |
| <br>Central | 2070 | 0.04 | 15.49 | 1.42 | 0.30 | 0.88 | 1.75 | 1.94 | 1.4 |
| <br>Central | 2075 | 0.01 | 29.79 | 1.31 | 0.26 | 0.54 | 1.32 | 2.79 | **2.1** |
| <br>Central | 2077 | 0 | 4.35 | 0.47 | 0.07 | 0.26 | 0.55 | 0.65 | 1.4 |
| <br>Central | 2078 | 0.07 | 3.16 | 1.53 | 0.81 | 1.34 | 2.22 | 0.80 | 0.5 |
| <br>Central | 2080 | 0 | 35.33 | 0.80 | 0.07 | 0.29 | 0.93 | 2.01 | **2.5** |
| <br>Central | 2082 | 0 | 59 | 0.75 | 0.06 | 0.16 | 0.55 | 2.69 | **3.6** |
| <br>Central | 2085 | 0 | 13.29 | 0.27 | 0.05 | 0.10 | 0.23 | 0.69 | **2.5** |
| <br>Central | 2086 | 0.1 | 4.63 | 0.57 | 0.17 | 0.24 | 0.48 | 0.87 | 1.5 |
| <br>Central | 2088 | 0 | 40.7 | 0.90 | 0.16 | 0.41 | 0.85 | 2.85 | **3.2** |
| <br>Central | 2090 | 0 | 33.48 | 0.53 | 0.03 | 0.09 | 0.27 | 1.70 | **3.2** |

---

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-7

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| ![](logo_001.jpg) | ![](ex99-30_020.jpg) |

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Area** | &nbsp;&nbsp;**Code** | **Min** | **Max** | **Mean** | **1Q** | **Median** | **3Q** | **SD** | **CV** |
|  | 2095 | 0 | 36 | 0.51 | 0.06 | 0.12 | 0.35 | 2.16 | **4.2** |
|  | 2101 | 0.05 | 0.18 | 0.09 | 0.05 | 0.05 | 0.18 | 0.06 | 0.7 |
|  | 2110 | 0 | 50.4 | 0.99 | 0.11 | 0.38 | 1.06 | 2.28 | **2.3** |
|  | 2120 | 0 | 30 | 1.32 | 0.12 | 0.49 | 1.27 | 2.80 | **2.1** |
|  | 2140 | 0 | 26.53 | 0.75 | 0.14 | 0.35 | 0.82 | 1.40 | 1.9 |
|  | 2141 | 0 | 14.12 | 1.32 | 0.34 | 0.80 | 1.67 | 1.55 | 1.2 |
|  | 2142 | 0.04 | 23.8 | 1.44 | 0.25 | 0.82 | 1.97 | 1.80 | 1.3 |
|  | 2143 | 0 | 15.51 | 0.91 | 0.05 | 0.36 | 1.32 | 1.40 | 1.5 |
|  | 2145 | 0.02 | 31.14 | 1.78 | 0.41 | 0.99 | 2.11 | 2.49 | 1.4 |
|  | 2146 | 0.03 | 15.63 | 1.31 | 0.17 | 0.57 | 1.45 | 2.43 | 1.9 |
|  | 2147 | 0.04 | 19.67 | 3.79 | 0.71 | 2.40 | 4.48 | 4.37 | 1.2 |
|  | 2155 | 0.02 | 4.18 | 1.69 | 0.11 | 0.93 | 4.18 | 1.68 | 1 |
|  | Total | 0 | 68.21 | 0.98 | 0.11 | 0.33 | 0.94 | 2.30 | **2.3** |
|  | All | 0 | 68.21 | 0.93 | 0.10 | 0.30 | 0.87 | 2.25 | **2.4** |

---

**Table 14-5: Statistics for Silver by Vein**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Area** | &nbsp;&nbsp;**Code** | **Min** | **Max** | **Mean** | **1Q** | **Median** | **3Q** | **SD** | **CV** |
| <br>Hundimiento | 2000 | 0 | 6715 | 238.3 | 32.1 | 131.1 | 297.7 | 461.1 | 1.9 |
| <br>Hundimiento | 2010 | 0 | 3561 | 285 | 34 | 176.9 | 389 | 353 | 1.2 |
| <br>Hundimiento | 2011 | 7 | 2218 | 738.7 | 132.3 | 374 | 1340.7 | 714.1 | 1 |
| <br>Hundimiento | 2012 | 7 | 352 | 82.7 | 37.3 | 57.1 | 88 | 78.1 | 0.9 |
| <br>Hundimiento | 2020 | 0 | 3015 | 91.2 | 25.1 | 54.9 | 103.9 | 149.9 | 1.6 |
| <br>Hundimiento | 2030 | 0.02 | 13890 | 554.8 | 64.2 | 189.1 | 506.9 | 1127.7 | **2.0** |
| <br>Hundimiento | 2040 | 0 | 22737 | 293 | 51 | 144 | 339.8 | 662.9 | **2.3** |
| <br>Central | 2050 | 0 | 12857 | 191.2 | 35.1 | 86 | 187.9 | 381.3 | **2.0** |
| <br>Central | 2060 | 0 | 2200 | 122.1 | 27.3 | 67.9 | 148.7 | 185 | 1.5 |
| <br>Central | 2061 | 0 | 930 | 115.6 | 27.3 | 74.9 | 139.8 | 148.7 | 1.3 |
| <br>Central | 2062 | 9 | 161 | 58.9 | 32.1 | 60.1 | 69.9 | 33.1 | 0.6 |
| <br>Central | 2065 | 2 | 86 | 25.7 | 2.2 | 2 | 44 | 34.9 | 1.4 |
| <br>Central | 2070 | 7 | 26993 | 301.6 | 55.1 | 123 | 291.8 | 906.5 | **3.0** |
| <br>Central | 2075 | 1 | 2564 | 187.4 | 34 | 101.9 | 208.9 | 307.7 | 1.6 |
| <br>Central | 2077 | 0 | 1313 | 91.6 | 14 | 36 | 101 | 158.5 | 1.7 |
| <br>Central | 2078 | 14 | 208 | 109.8 | 91.2 | 118.1 | 146.8 | 43.8 | 0.4 |

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PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-8

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|:---|:---|
| ![](logo_001.jpg) | ![](ex99-30_020.jpg) |

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---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Area** | &nbsp;&nbsp;**Code** | **Min** | **Max** | **Mean** | **1Q** | **Median** | **3Q** | **SD** | **CV** |
|  | 2080 | 0 | 10193 | 181.6 | 23.2 | 57.9 | 153.9 | 498.7 | **2.7** |
|  | 2082 | 0 | 1954 | 138.3 | 23.2 | 74.1 | 179.8 | 185.5 | 1.3 |
|  | 2085 | 0 | 158 | 2.2 | 0.3 | 0.4 | 0.8 | 9.2 | **4.2** |
|  | 2086 | 18 | 751 | 266.1 | 138.2 | 211 | 382.8 | 175.8 | 0.7 |
|  | 2088 | 0 | 6198 | 91 | 23.2 | 49 | 94.7 | 304.6 | **3.3** |
|  | 2090 | 0 | 3323 | 131.1 | 13.2 | 49 | 113.9 | 289.7 | **2.2** |
|  | 2095 | 0 | 1862 | 67.5 | 15.1 | 39 | 78.8 | 129.9 | 1.9 |
|  | 2110 | 0 | 5040 | 182.6 | 18.1 | 64.1 | 149.8 | 484.2 | **2.7** |
|  | 2120 | 0 | 11889 | 311.9 | 20.2 | 64.1 | 265.9 | 848 | **2.7** |
|  | 2140 | 0 | 1344 | 62.2 | 15.1 | 40.1 | 76.9 | 84.9 | 1.4 |
|  | 2141 | 0 | 3350 | 113.8 | 52.1 | 81.1 | 118.8 | 199.4 | 1.8 |
|  | 2142 | 7 | 1366 | 127.2 | 45.1 | 83 | 140.9 | 162.2 | 1.3 |
|  | 2143 | 0 | 7704 | 96.8 | 25.1 | 66 | 108.8 | 229.1 | **2.4** |
|  | 2145 | 0.05 | 17601 | 592.3 | 82.1 | 182.1 | 538 | 1283.8 | **2.2** |
|  | 2146 | 0 | 2480 | 225.2 | 50.2 | 108.9 | 240.8 | 387.6 | 1.7 |
|  | 2147 | 17 | 7109 | 454.2 | 123.1 | 262 | 636.8 | 754.9 | 1.7 |
|  | 2155 | 3.5 | 157 | 48.3 | 3.5 | 27.1 | 77.7 | 48.7 | 1 |
|  | Total | 0 | 26993 | 193.1 | 23.2 | 71.9 | 179.8 | 518.7 | 2.7 |
|  | All | 0 | 26993 | 176.7 | 16.2 | 63 | 164.9 | 484.7 | 2.7 |

---

Table 14-6 shows the statistical analysis of assay interval lengths shows that the average sample length is 1.8 m. Therefore, the data is negatively skewed meaning that there is a preponderance of small sample lengths in comparison to greater thicknesses.

**Table 14-6: Statistics Assay Interval Lengths for the Porco Deposit by Vein**

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Area** | **Code** | **Min** | **Max** | **Mean** | **1Q** | **Median** | **3Q** | **SD** | **CV** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>Hundimiento | 2000 | 0.05 | 2.2 | 0.76 | 0.40 | 0.80 | 1.00 | 0.38 | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>Hundimiento | 2010 | 0.05 | 3 | 1.05 | 0.80 | 1.00 | 1.10 | 0.51 | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>Hundimiento | 2011 | 0.05 | 0.9 | 0.44 | 0.35 | 0.40 | 0.50 | 0.18 | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>Hundimiento | 2012 | 0.05 | 1 | 0.68 | 0.45 | 0.77 | 0.96 | 0.28 | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>Hundimiento | 2020 | 0.05 | 3.8 | 1.34 | 1.00 | 1.00 | 1.70 | 0.64 | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>Hundimiento | 2030 | 0.01 | 1.45 | 0.67 | 0.45 | 0.70 | 0.90 | 0.28 | 0.4 |

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PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-9

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| ![](logo_001.jpg) | ![](ex99-30_020.jpg) |

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Area** | &nbsp;&nbsp;**Code** | **Min** | **Max** | **Mean** | **1Q** | **Median** | **3Q** | **SD** | **CV** |
|  | 2040 | 0.02 | 6.15 | 1.57 | 0.80 | 1.30 | 2.20 | 0.87 | 0.6 |
| <br>Central | 2050 | 0.02 | 4.1 | 1.12 | 0.80 | 0.80 | 1.50 | 0.61 | 0.5 |
| <br>Central | 2060 | 0.03 | 3.65 | 1.09 | 1.00 | 1.00 | 1.20 | 0.45 | 0.4 |
| <br>Central | 2061 | 0.05 | 1.4 | 0.77 | 0.60 | 0.80 | 1.00 | 0.25 | 0.3 |
| <br>Central | 2062 | 0.1 | 0.83 | 0.38 | 0.25 | 0.34 | 0.42 | 0.19 | 0.5 |
| <br>Central | 2064 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.00 | 0 |
| <br>Central | 2065 | 0.15 | 0.83 | 0.63 | 0.28 | 0.83 | 0.83 | 0.29 | 0.5 |
| <br>Central | 2070 | 0.05 | 1.3 | 0.64 | 0.40 | 0.70 | 0.80 | 0.27 | 0.4 |
| <br>Central | 2075 | 0.1 | 1.6 | 0.80 | 0.80 | 0.80 | 0.80 | 0.21 | 0.3 |
| <br>Central | 2077 | 0.1 | 1.6 | 0.84 | 0.80 | 0.80 | 0.80 | 0.16 | 0.2 |
| <br>Central | 2078 | 0.1 | 0.52 | 0.38 | 0.27 | 0.40 | 0.45 | 0.11 | 0.3 |
| <br>Central | 2080 | 0.05 | 3.6 | 1.03 | 0.80 | 0.80 | 1.15 | 0.44 | 0.4 |
| <br>Central | 2082 | 0.05 | 3.8 | 1.00 | 0.80 | 0.80 | 1.10 | 0.41 | 0.4 |
| <br>Central | 2085 | 0.8 | 4.1 | 1.36 | 0.80 | 1.20 | 1.80 | 0.63 | 0.5 |
| <br>Central | 2086 | 0.15 | 1.2 | 0.79 | 0.60 | 0.80 | 1.00 | 0.23 | 0.3 |
| <br>Central | 2088 | 0.8 | 2.4 | 0.91 | 0.80 | 0.80 | 0.80 | 0.30 | 0.3 |
| <br>Central | 2090 | 0.05 | 3.5 | 1.19 | 0.80 | 1.00 | 1.40 | 0.56 | 0.5 |
| <br>Central | 2095 | 0.27 | 2.7 | 0.97 | 0.80 | 0.80 | 1.00 | 0.30 | 0.3 |
| <br>Central | 2101 | 0.15 | 0.31 | 0.26 | 0.15 | 0.31 | 0.31 | 0.08 | 0.3 |
| <br>Central | 2102 | 0.05 | 0.3 | 0.26 | 0.30 | 0.30 | 0.30 | 0.09 | 0.3 |
| <br>Central | 2103 | 0.6 | 0.6 | 0.60 | 0.60 | 0.60 | 0.60 | 0.00 | 0 |
| <br>Central | 2110 | 0.08 | 2.6 | 0.98 | 0.80 | 0.80 | 1.00 | 0.36 | 0.4 |
| <br>Central | 2120 | 0.05 | 1.6 | 0.93 | 0.80 | 1.00 | 1.00 | 0.20 | 0.2 |
| <br>Central | 2140 | 0.05 | 3 | 1.01 | 0.80 | 1.00 | 1.05 | 0.42 | 0.4 |
| <br>Central | 2141 | 0.05 | 1.7 | 0.64 | 0.40 | 0.60 | 0.86 | 0.30 | 0.5 |
| <br>Central | 2142 | 0.05 | 2.2 | 0.73 | 0.40 | 0.70 | 1.00 | 0.38 | 0.5 |
| <br>Central | 2143 | 0.05 | 1.65 | 0.72 | 0.40 | 0.80 | 1.00 | 0.30 | 0.4 |
| <br>Central | 2145 | 0.02 | 3.3 | 0.87 | 0.60 | 0.80 | 1.00 | 0.46 | 0.5 |
| <br>Central | 2146 | 0.8 | 1.4 | 0.85 | 0.80 | 0.80 | 0.80 | 0.12 | 0.1 |
| <br>Central | 2147 | 0.16 | 1.07 | 0.73 | 0.51 | 0.70 | 1.00 | 0.25 | 0.3 |
| <br>Central | 2155 | 0.12 | 0.84 | 0.53 | 0.47 | 0.51 | 0.84 | 0.22 | 0.4 |
|  | Total | 0.01 | 6.15 | 1.18 | 0.80 | 1.00 | 1.40 | 0.66 | 0.6 |
|  | All | 0.01 | 42 | 1.28 | 0.80 | 1.00 | 1.35 | 2.34 | 1.8 |

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PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-10

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| ![](logo_001.jpg) | ![](ex99-30_020.jpg) |

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Figure 14-5 also illustrates this negative skewness and also illustrates that the assay lengths are predominately <1 m in length with the most common sample length being 0.8 m and with approximately 20% of all vein samples being >1 m.

**Figure 14-5: Assay Interval Lengths**

![](ex99-30_076.jpg)

14.5 Composites

It was determined that a 1.0 m composite length offered the best balance between supplying common support for samples and minimizing the smoothing of the grades with ~80% of the samples within the mineralized zones being <1 m in length. The 1.0 m sample length is also approximately consistent with the distribution of sample lengths within the mineralized domains as shown in the histogram of assay lengths.

Figure 14-6 shows the sample lengths for the data composited to the full width of the veins to determine the actual effect of compositing. Note that the histograms are comparatively similar which shows that the assay data was samples across the complete width of the vein for the most part therefore the act of composting has relatively little effect. Therefore, cutting will be the necessary as the predominant tool for treating the anomalous outlier grades in order the reduce variability and reduce the influence of the high-grade populations.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-11

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| ![](logo_001.jpg) | ![](ex99-30_020.jpg) |

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**Figure 14-6: Full Vein Composite Interval Lengths**

It should be noted that although 1.0 m is the composite length, any residual composites of lengths greater than 0.5 m were retained to represent a composite, while any composite residuals less than 0.5 m were combined with the previous composite. However, as the composite lengths are significantly similar to the original assay sample lengths, the number of "tails" is minimal. Note that the composite data was not declustered however analysis shows that there are small variations in the mean grades between native and declustered composites. Due to the high degree of reliance on underground sample data for the estimation process, consideration should always include review of declustering to ensure appropriate data support.

The box plots for the zinc, lead and silver composites illustrate that each of the individual vein domains have differing statistical characteristics and grade distributions. Figure 14-7 through Figure 14-9 provide the statistical distributions in the way for box plots for the Hundimiento area while Figure 14-10 through Figure 14-12 illustrate those for the Central area. These statistical representations show that there is not a case combine any or all of the vein domains for estimation and as such, they are treated independently utilizing hard boundaries.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-12

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| ![](logo_001.jpg) | ![](ex99-30_020.jpg) |

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**Figure 14-7: Box Plot of Zn Composites for the Hundimiento Area**

![](ex99-30_078.jpg)

**Figure 14-8: Box Plot of Pb Composites for the Hundimiento Area**

![](ex99-30_079.jpg)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-13

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| ![](logo_001.jpg) | ![](ex99-30_020.jpg) |

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**Figure 14-9: Box Plot of Ag Composites for the Hundimiento Area**

![](ex99-30_080.jpg)

**Figure 14-10: Box Plot of Zn Composites for the Central Area**

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-14

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**Figure 14-11: Box Plot of Pb Composites for the Central Area**

**Figure 14-12: Box Plot of Ag Composites for the Central Area**

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-15

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**Figure 14-13: Histogram of Ag Composites for the Porco Deposit**

![](ex99-30_084.jpg)

**Figure 14-14: Histogram of Zn Composites for the Porco Deposit**

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-16

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**Figure 14-15: Histogram of Pb Composites for the Porco Deposit**

![](ex99-30_087.jpg)

14.6 Evaluation
 of Outlier Assay Values

An evaluation of the probability plots suggests that there may be outlier assay values that could result in an overestimation of resources as previously discussed. Although it is believed that this risk is relatively low, it was considered prudent to cut the silver, lead and zinc composites to varying thresholds for each mineralized vein to reduce the effects of outliers. As previously discussed, the CV's, which are a unit independent measure of variability, were relatively low for the assay data. This may be mitigated or resolved by cutting or grade limiting. An evaluation of the cumulative frequency plots suggests that there may be outlier values or populations that could result in an overestimation or smearing of grade.

Examples of the cumulative frequency plots are shown in the following figures and are limited to the complete Hundimiento area and specifically to the PE vein for the sake of brevity with Figure 14-16 and Figure 14-17 for silver, Figure 14-18 and Figure 14-19 for lead and Figure 14-20 and Figure 14-21, respectively. The cumulative plots illustrate the points that indicate where there may be secondary high-grade populations which require treatment. These points or thresholds are demonstrated by "breaks" or shifts at the approximately the 99th percentile that indicate the outlier population as illustrated in the figures.

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**Figure 14-16: Cumulative Probability of Ag Composites for All Veins within the Hundimiento Area**

![](ex99-30_088.jpg)

**Figure 14-17: Cumulative Probability of Ag Composites for the Pe Vein within the Hundimiento Area**

![](ex99-30_089.jpg)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-18

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**Figure 14-18: Cumulative Probability of Pb Composites for All Veins within the Hundimiento Area**

![](ex99-30_090.jpg)

**Figure 14-19: Cumulative Probability of Pb Composites for the Pe Vein within the Hundimiento Area**

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-19

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**Figure 14-20: Cumulative Probability of Zn Composites for All Veins within the Hundimiento Area**

![](ex99-30_092.jpg)

**Figure 14-21: Cumulative Probability of Zn Composites for the Pe Vein within the Hundimiento Area**

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Therefore, for composites above those "breaks" or thresholds, the composites are limited or capped. Table 14-7 lists the cut thresholds applied to the composite data for each individual vein for zinc, silver and lead, respectively. The results show a modest reduction of metal in addition to a modest reduction in variability as illustrated by the reduction in the CV's.

**Table 14-7: Outlier Cutting Analysis for the Porco Deposit**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Area** | **Code** | **Vein** | **Zn%** | **Ag g/t** | **Pb%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>Hundimiento | 2000 | Camila | 42 | 535 | 1.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>Hundimiento | 2001 | Ramo Camila | 32.4 | 186 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>Hundimiento | 2010 | Colorada | 36 | 1155 | 8.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>Hundimiento | 2011 | Karlita | 36.3 | 1569 | 5.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>Hundimiento | 2020 | Colorada Uno | 45.1 | 868 | 18.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>Hundimiento | 2030 | PE | 39.9 | 1429 | 5.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>Hundimiento | 2040 | Hundimiento | 38.2 | 2625 | 6 |
| <br>Central | 2050 | California | 37.2 | 1156 | 9.7 |
| <br>Central | 2060 | H_6 | 22 | 609 | 6.4 |
| <br>Central | 2061 | H_6_C | 22 | 609 | 6.4 |
| <br>Central | 2064 | H_6_H | 43.8 | 2579 | 7.8 |
| <br>Central | 2070 | Ramo_H6 | 43.8 | 2579 | 7.8 |
| <br>Central | 2075 | Crucera 22 | 18.5 | 480 | 3.5 |
| <br>Central | 2077 | Crucera Dos | 43.8 | 2579 | 7.8 |
| <br>Central | 2082 | Larga | 45 | 550 | 7.5 |
| <br>Central | 2085 | Pobre Rico 3 | 33 | 15 | 1.5 |
| <br>Central | 2086 | Sapi | 32 | 684 | 2.3 |
| <br>Central | 2088 | Cuadro | 28 | 400 | 5 |
| <br>Central | 2090 | San Antonio Principal | 49.4 | 1558 | 7.9 |
| <br>Central | 2095 | Aurora | 40 | 405 | 4.5 |
| <br>Central | 2101 | Sap N | 49.4 | 1558 | 7.9 |
| <br>Central | 2110 | Ramo 1 Solidad | 47.2 | 640 | 7 |
| <br>Central | 2120 | Crucera B | 25.9 | 217 | 2 |
| <br>Central | 2140 | Elena | 50 | 306 | 3.5 |
| <br>Central | 2141 | Ramo Elena | 44 | 268 | 5.1 |
| <br>Central | 2142 | Rosario | 50.3 | 427 | 4.9 |
| <br>Central | 2143 | Cecilia | 47 | 192 | 4 |
| <br>Central | 2145 | Carla | 50 | 306 | 3.5 |
| <br>Central | 2147 | Carla 2 | 47.8 | 3415 | 2.9 |
| <br>Central | 2155 | Ramo Carla | 31.3 | 215 | 4.6 |

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PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-21

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14.7 Specific
 Gravity Estimation

Bulk densities were based a multiple-element linear regression formula was calculated with the use of a Python script which was used to determine the density from weighted factors for the zinc and lead. This the Multiple Linear Regression Formula is as follows:

Density = 2.821\*Exp (0.0077\*(Pb% +Zn%))

Table 14-8 shows the calculated density statistics for each vein. In general, the density values range from 2.82 t/m<sup>3</sup> to 5.65 t/m<sup>3</sup> and average 3.15 t/m<sup>3</sup>.

Going forward is recommended to continue to gather measured density data in addition to ensuring that iron is included in the analysis so as to test and improve the density conversion calculation.

**Table 14-8: Calculated Specific Gravity by Vein**

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Area** | **Code** | **Min** | **Max** | **Mean** | **1Q** | **Median** | **3Q** | **SD** | **Variance** | **CV** |
| <br>Hundimiento | 2000 | 2.82 | 4.32 | 3.25 | 3.02 | 3.22 | 3.45 | 0.29 | 0.08 | 0.1 |
| <br>Hundimiento | 2010 | 2.82 | 4.23 | 3.15 | 2.91 | 3.09 | 3.32 | 0.30 | 0.09 | 0.1 |
| <br>Hundimiento | 2011 | 2.83 | 4.14 | 3.42 | 3.08 | 3.37 | 3.68 | 0.37 | 0.14 | 0.1 |
| <br>Hundimiento | 2012 | 2.82 | 3.79 | 3.17 | 3.04 | 3.18 | 3.32 | 0.22 | 0.05 | 0.1 |
| <br>Hundimiento | 2020 | 2.82 | 4.83 | 3.20 | 2.95 | 3.14 | 3.37 | 0.30 | 0.09 | 0.1 |
| <br>Hundimiento | 2030 | 2.82 | 4.83 | 3.39 | 3.04 | 3.31 | 3.67 | 0.41 | 0.16 | 0.1 |
| <br>Hundimiento | 2040 | 2.82 | 5.65 | 3.12 | 2.93 | 3.07 | 3.24 | 0.25 | 0.06 | 0.1 |
| <br>Central | 2050 | 2.82 | 4.44 | 3.12 | 2.90 | 3.05 | 3.26 | 0.27 | 0.07 | 0.1 |
| <br>Central | 2060 | 2.82 | 4.01 | 3.01 | 2.87 | 2.95 | 3.09 | 0.20 | 0.04 | 0.1 |
| <br>Central | 2061 | 2.82 | 4.03 | 3.13 | 2.94 | 3.10 | 3.29 | 0.24 | 0.06 | 0.1 |
| <br>Central | 2062 | 2.93 | 4.1 | 3.49 | 3.17 | 3.39 | 3.81 | 0.35 | 0.13 | 0.1 |
| <br>Central | 2064 | 3.28 | 3.28 | 3.28 | 3.28 | 3.28 | 3.28 | 0.00 | 0.00 | 0.0 |
| <br>Central | 2065 | 3.1 | 3.8 | 3.26 | 3.10 | 3.10 | 3.10 | 0.29 | 0.09 | 0.1 |
| <br>Central | 2070 | 2.82 | 4.36 | 3.29 | 3.07 | 3.21 | 3.44 | 0.32 | 0.10 | 0.1 |
| <br>Central | 2075 | 2.82 | 3.85 | 3.07 | 2.93 | 3.02 | 3.13 | 0.20 | 0.04 | 0.1 |
| <br>Central | 2077 | 2.82 | 4.11 | 3.03 | 2.87 | 2.95 | 3.10 | 0.24 | 0.06 | 0.1 |
| <br>Central | 2078 | 2.84 | 3.74 | 3.32 | 3.23 | 3.34 | 3.39 | 0.22 | 0.05 | 0.1 |
| <br>Central | 2080 | 2.82 | 4.53 | 3.15 | 2.92 | 3.07 | 3.31 | 0.29 | 0.08 | 0.1 |
| <br>Central | 2082 | 2.82 | 4.64 | 3.14 | 2.91 | 3.05 | 3.30 | 0.28 | 0.08 | 0.1 |
| <br>Central | 2085 | 2.82 | 4.04 | 3.05 | 2.92 | 3.01 | 3.12 | 0.18 | 0.03 | 0.1 |

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PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-22

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Area** | **Code** | **Min** | **Max** | **Mean** | **1Q** | **Median** | **3Q** | **SD** | **Variance** | **CV** |
|  | 2086 | 2.85 | 3.86 | 3.08 | 2.99 | 3.05 | 3.16 | 0.17 | 0.03 | 0.1 |
|  | 2088 | 2.82 | 4.44 | 3.03 | 2.89 | 2.98 | 3.10 | 0.21 | 0.04 | 0.1 |
|  | 2090 | 2.82 | 4.43 | 3.18 | 2.92 | 3.09 | 3.36 | 0.33 | 0.11 | 0.1 |
|  | 2095 | 2.82 | 4.1 | 3.10 | 2.91 | 3.03 | 3.24 | 0.25 | 0.06 | 0.1 |
|  | 2101 | 3.2 | 3.31 | 3.24 | 3.20 | 3.20 | 3.31 | 0.05 | 0.00 | 0.0 |
|  | 2102 | 2.86 | 3.42 | 2.94 | 2.86 | 2.86 | 2.86 | 0.20 | 0.04 | 0.1 |
|  | 2103 | 2.96 | 2.96 | 2.96 | 2.96 | 2.96 | 2.96 | 0.00 | 0.00 | 0.0 |
|  | 2110 | 2.82 | 4.86 | 3.21 | 2.89 | 3.13 | 3.46 | 0.35 | 0.13 | 0.1 |
|  | 2120 | 2.82 | 4.34 | 3.16 | 2.95 | 3.12 | 3.31 | 0.27 | 0.07 | 0.1 |
|  | 2140 | 2.82 | 4.44 | 3.24 | 2.96 | 3.15 | 3.46 | 0.35 | 0.12 | 0.1 |
|  | 2141 | 2.82 | 4.44 | 3.35 | 3.11 | 3.29 | 3.52 | 0.33 | 0.11 | 0.1 |
|  | 2142 | 2.83 | 4.32 | 3.51 | 3.29 | 3.50 | 3.72 | 0.30 | 0.09 | 0.1 |
|  | 2143 | 2.82 | 4.34 | 3.30 | 3.00 | 3.20 | 3.55 | 0.37 | 0.14 | 0.1 |
|  | 2145 | 2.82 | 4.37 | 3.48 | 3.21 | 3.48 | 3.76 | 0.36 | 0.13 | 0.1 |
|  | 2146 | 2.83 | 3.87 | 3.15 | 2.96 | 3.08 | 3.31 | 0.23 | 0.05 | 0.1 |
|  | 2147 | 2.9 | 4.06 | 3.54 | 3.31 | 3.62 | 3.78 | 0.29 | 0.08 | 0.1 |
|  | 2155 | 2.82 | 4.1 | 3.04 | 2.83 | 2.97 | 2.97 | 0.31 | 0.09 | 0.1 |
|  | Total | 2.82 | 5.65 | 3.17 | 2.93 | 3.09 | 3.33 | 0.31 | 0.09 | 0.1 |
|  | All | 2.82 | 5.65 | 3.15 | 2.90 | 3.06 | 3.30 | 0.31 | 0.10 | 0.1 |

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14.8 Block
 Model Definition

The block model used to estimate the resources was defined according to the limits specified in Figure 14-22. The block model is orthogonal and rotated 47 degrees, reflecting the orientation of the deposit. The chosen block size was 5 m by 5 m by 5 m and subsequently sub-blocked to 1 m x 0.1 m x 1 m to facilitate underground mine planning and scheduling. Note that MineSight<sup>TM</sup> uses the centroid of the blocks as the origin.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-23

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**Figure 14-22: Dimensions, Origin and Orientation for the Porco Block Model**

![](ex99-30_096.jpg)

14.9 Resource
 Estimation Methodology

Variograms and variogram models were generated for silver, lead and zinc grades which were utilized for the estimation via ordinary kriging. However, in the cases where insufficient data did not produce meaningful results, inverse distance to the second power using anisotropic search ellipsoids were employed.

The resource estimation plan includes the following items:

● Mineralized zone code of modelled mineralization in each block;

● Estimated block silver, lead, and zinc grades by ordinary kriging with the exception of inverse distance to the second power being employed for veins that possess insufficient samples for creation of effective variograms;

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● Three-pass estimation strategy for each mineralized vein domain as detailed in Table 14-9 and Table 14-10. The three passes enable better estimation of local metal grades and infill of interpreted solids and to facilitate classification; and

● Assignment on sterilized and mined out areas coded into the block model for exclusion.

**Table 14-9: Search Ellipse Parameters for the Hundimiento Area**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Vein** | **Pass** | &nbsp;&nbsp;&nbsp;&nbsp;**Range 1 (m)** | &nbsp;&nbsp;&nbsp;&nbsp;**Range 2 (m)** | &nbsp;&nbsp;&nbsp;&nbsp;**Range 3 (m)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Min # Composites** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Max # Composites** |
| 2000 | 1 | 13 | 20 | 17 | 8 | 20 |
| 2000 | 2 | 20 | 30 | 25 | 5 | 20 |
| 2000 | 3 | 50 | 75 | 75 | 3 | 30 |
| 2001 | 1 | 13 | 13 | 7 | 8 | 10 |
| 2001 | 2 | 25 | 20 | 10 | 5 | 15 |
| 2001 | 3 | 40 | 40 | 20 | 3 | 5 |
| 2010 | 1 | 17 | 13 | 7 | 12 | 25 |
| 2010 | 2 | 25 | 25 | 10 | 5 | 30 |
| 2010 | 3 | 75 | 60 | 30 | 3 | 30 |
| 2011 | 1 | 13 | 13 | 13 | 6 | 12 |
| 2011 | 2 | 25 | 25 | 20 | 8 | 20 |
| 2011 | 3 | 75 | 75 | 60 | 3 | 5 |
| 2020 | 1 | 20 | 15 | 13 | 8 | 20 |
| 2020 | 2 | 40 | 30 | 20 | 8 | 30 |
| 2020 | 3 | 80 | 60 | 40 | 3 | 10 |
| 2021 | 1 | 23 | 33 | 27 | 7 | 20 |
| 2021 | 2 | 35 | 50 | 40 | 12 | 26 |
| 2021 | 3 | 88 | 125 | 100 | 3 | 3 |
| 2030 | 1 | 20 | 15 | 13 | 7 | 10 |
| 2030 | 2 | 40 | 30 | 20 | 11 | 20 |
| 2030 | 3 | 80 | 60 | 40 | 3 | 15 |
| 2040 | 1 | 23 | 28 | 21 | 8 | 20 |
| 2040 | 2 | 34 | 43 | 32 | 9 | 30 |
| 2040 | 3 | 89 | 107 | 81 | 3 | 40 |
| 2042 | 1 | 23 | 28 | 21 | 8 | 20 |
| 2042 | 2 | 34 | 43 | 32 | 10 | 30 |
| 2042 | 3 | 89 | 107 | 81 | 3 | 40 |

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PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-25

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**Table 14-10: Search Ellipse Parameters for the Central Area of the Porco Deposit**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Vein** | **Pass** | &nbsp;&nbsp;&nbsp;&nbsp;**Range 1 (m)** | &nbsp;&nbsp;&nbsp;&nbsp;**Range 2 (m)** | &nbsp;&nbsp;&nbsp;&nbsp;**Range 3 (m)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Min # Composites** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Max # Composites** |
| &nbsp;&nbsp;&nbsp;2050 | 1 | 19 | 20 | 13 | 5 | 10 |
| &nbsp;&nbsp;&nbsp;2050 | 2 | 29 | 30 | 22 | 10 | 15 |
| &nbsp;&nbsp;&nbsp;2050 | 3 | 74 | 76 | 54 | 3 | 30 |
| &nbsp;&nbsp;&nbsp;2060 | 1 | 23 | 22 | 12 | 8 | 17 |
| &nbsp;&nbsp;&nbsp;2060 | 2 | 34 | 33 | 18 | 8 | 35 |
| &nbsp;&nbsp;&nbsp;2060 | 3 | 85 | 83 | 45 | 3 | 30 |
| &nbsp;&nbsp;&nbsp;2061 | 1 | 23 | 22 | 12 | 8 | 17 |
| &nbsp;&nbsp;&nbsp;2061 | 2 | 34 | 34 | 18 | 5 | 35 |
| &nbsp;&nbsp;&nbsp;2061 | 3 | 132 | 132 | 70 | 3 | 10 |
| &nbsp;&nbsp;&nbsp;2064 | 1 | 17 | 9 | 17 | 5 | 17 |
| &nbsp;&nbsp;&nbsp;2064 | 2 | 25 | 25 | 25 | 5 | 24 |
| &nbsp;&nbsp;&nbsp;2064 | 3 | 100 | 100 | 80 | 3 | 10 |
| &nbsp;&nbsp;&nbsp;2070 | 1 | 17 | 17 | 17 | 5 | 11 |
| &nbsp;&nbsp;&nbsp;2070 | 2 | 25 | 25 | 25 | 5 | 24 |
| &nbsp;&nbsp;&nbsp;2070 | 3 | 63 | 35 | 63 | 3 | 30 |
| &nbsp;&nbsp;&nbsp;2075 | 1 | 17 | 17 | 13 | 4 | 11 |
| &nbsp;&nbsp;&nbsp;2075 | 2 | 26 | 26 | 20 | 5 | 22 |
| &nbsp;&nbsp;&nbsp;2075 | 3 | 65 | 65 | 50 | 3 | 30 |
| &nbsp;&nbsp;&nbsp;2077 | 1 | 17 | 17 | 17 | 5 | 12 |
| &nbsp;&nbsp;&nbsp;2077 | 2 | 25 | 25 | 25 | 4 | 24 |
| &nbsp;&nbsp;&nbsp;2077 | 3 | 100 | 100 | 80 | 3 | 10 |
| &nbsp;&nbsp;&nbsp;2080 | 1 | 15 | 15 | 10 | 6 | 25 |
| &nbsp;&nbsp;&nbsp;2080 | 2 | 25 | 25 | 20 | 5 | 20 |
| &nbsp;&nbsp;&nbsp;2080 | 3 | 75 | 75 | 60 | 3 | 20 |
| &nbsp;&nbsp;&nbsp;2082 | 1 | 27 | 27 | 13 | 4 | 11 |
| &nbsp;&nbsp;&nbsp;2082 | 2 | 41 | 41 | 20 | 6 | 22 |
| &nbsp;&nbsp;&nbsp;2082 | 3 | 103 | 103 | 50 | 3 | 30 |
| &nbsp;&nbsp;&nbsp;2085 | 1 | 26 | 25 | 13 | 8 | 20 |
| &nbsp;&nbsp;&nbsp;2085 | 2 | 39 | 38 | 20 | 4 | 30 |
| &nbsp;&nbsp;&nbsp;2085 | 3 | 98 | 95 | 50 | 3 | 30 |
| &nbsp;&nbsp;&nbsp;2086 | 1 | 12 | 12 | 10 | 4 | 10 |
| &nbsp;&nbsp;&nbsp;2086 | 2 | 25 | 25 | 20 | 5 | 20 |
| &nbsp;&nbsp;&nbsp;2086 | 3 | 63 | 63 | 50 | 3 | 30 |
| &nbsp;&nbsp;&nbsp;2088 | 1 | 21 | 21 | 11 | 4 | 11 |
| &nbsp;&nbsp;&nbsp;2088 | 2 | 32 | 31 | 17 | 2 | 22 |
| &nbsp;&nbsp;&nbsp;2088 | 3 | 80 | 78 | 43 | 3 | 30 |

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PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-26

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Vein** | **Pass** | &nbsp;&nbsp;&nbsp;&nbsp;**Range 1 (m)** | &nbsp;&nbsp;&nbsp;&nbsp;**Range 2 (m)** | &nbsp;&nbsp;&nbsp;&nbsp;**Range 3 (m)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Min # Composites** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Max # Composites** |
| 2090 | 1 | 27 | 27 | 20 | 5 | 15 |
| 2090 | 2 | 40 | 40 | 30 | 4 | 20 |
| 2090 | 3 | 100 | 100 | 75 | 3 | 30 |
| 2095 | 1 | 20 | 20 | 13 | 10 | 19 |
| 2095 | 2 | 30 | 30 | 20 | 5 | 30 |
| 2095 | 3 | 75 | 75 | 50 | 3 | 30 |
| 2101 | 1 | 23 | 27 | 20 | 8 | 15 |
| 2101 | 2 | 35 | 40 | 30 | 8 | 20 |
| 2101 | 3 | 140 | 160 | 75 | 3 | 20 |
| 2110 | 1 | 29 | 27 | 13 | 8 | 20 |
| 2110 | 2 | 44 | 44 | 20 | 7 | 30 |
| 2110 | 3 | 110 | 100 | 50 | 3 | 30 |
| 2120 | 1 | 20 | 20 | 15 | 8 | 22 |
| 2120 | 2 | 30 | 30 | 20 | 8 | 30 |
| 2120 | 3 | 75 | 75 | 50 | 3 | 30 |
| 2140 | 1 | 33 | 19 | 12 | 5 | 20 |
| 2140 | 2 | 50 | 29 | 18 | 5 | 30 |
| 2140 | 3 | 125 | 73 | 45 | 3 | 5 |
| 2141 | 1 | 15 | 15 | 13 | 4 | 11 |
| 2141 | 2 | 30 | 30 | 20 | 4 | 20 |
| 2141 | 3 | 60 | 60 | 40 | 3 | 30 |
| 2142 | 1 | 12 | 8 | 10 | 7 | 14 |
| 2142 | 2 | 25 | 15 | 15 | 5 | 20 |
| 2142 | 3 | 50 | 30 | 30 | 3 | 30 |
| 2143 | 1 | 13 | 15 | 10 | 6 | 12 |
| 2143 | 2 | 25 | 30 | 20 | 5 | 20 |
| 2143 | 3 | 60 | 50 | 40 | 3 | 20 |
| 2145 | 1 | 33 | 19 | 12 | 5 | 20 |
| 2145 | 2 | 50 | 29 | 18 | 5 | 30 |
| 2145 | 3 | 125 | 73 | 45 | 3 | 5 |
| 2147 | 1 | 20 | 18 | 10 | 8 | 20 |
| 2147 | 2 | 40 | 40 | 20 | 4 | 20 |
| 2147 | 3 | 80 | 60 | 40 | 2 | 20 |
| 2155 | 1 | 15 | 15 | 15 | 5 | 15 |
| 2155 | 2 | 30 | 30 | 30 | 4 | 15 |
| 2155 | 3 | 75 | 75 | 60 | 2 | 10 |

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14.10 Mineral
 Resource Classification

Mineral resources were estimated in conformity with generally accepted CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (2019). Mineral resources are not mineral reserves and do not have demonstrated economic viability.

The mineral resources may be impacted by further infill and exploration drilling that may result in an increase or decrease in future resource evaluations. The mineral resources may also be affected by subsequent assessment of mining, environmental, processing, permitting, taxation, socio-economic and other factors. There is insufficient information in this early stage of study to assess the extent to which the mineral resources will be affected by factors such as these that are more suitably assessed in a scoping or conceptual study.

Mineral resources for the Porco deposit were classified according to the CIM Definition Standards for Mineral Resources and Mineral Reserves (2014) as approved by Garth Kirkham, P.Geo., an "independent qualified person" as defined by National Instrument 43-101.

Drillhole spacing in the Porco deposit is sufficient for preliminary geostatistical analysis and evaluating spatial grade variability. Kirkham Geosystems is, therefore, of the opinion that the amount of sample data is adequate to demonstrate very good confidence in the grade estimates for the deposit.

The estimated blocks were classified according to the following:

● Confidence in interpretation of the mineralized zones;

● Number of data used to estimate a block;

● Number of composites allowed per drillhole; and

● Distance to nearest composite used to estimate a block.

The classification of resources was based primarily on distance to the nearest composite; however, all of the quantitative measures, as listed here, were inspected and taken into consideration. In addition, the classification of resources for each zone was considered individually by virtue of their relative depth from surface and the ability to derive meaningful geostatistical results.

The estimation plan entailed a multiple pass strategy where each pass utilized increasingly restrictive search distances and parameters. Each individual vein employs differing search distances and parameters as discussed. Therefore, blocks that are estimated within the first pass are assigned as measured, those estimated within the second pass are assigned indicated and those estimated in the third pass are assigned as inferred.

Furthermore, an interpreted boundary was created for the indicated and inferred threshold in order to exclude orphans and reduce "spotted dog" effect. The remaining blocks may be unclassified and may be considered as geologic potential for further exploration.

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Furthermore, in consideration for the requirement for resources to possess a "reasonable prospect of eventual economic extraction" (RP3E), underground mineable shapes were created that displayed continuity based on cut-off grades and classification. Additionally, these RP3E shapes also took into account must-take material that may fall below cut-off grade but will be extracted by mining in the event that adjacent economic material is extracted making below cut- off material by virtue of the mining costs being paid for.

**Figure 14-23: Long Section View of the Porco Deposit Showing Resource Block by Classification**

14.11 ZnEq
 Calculation

The mineral resources reported herein are reporting based on zinc equivalent or ZnEq. Cut-off criteria was developed based on a ZnEq formula as follows:

ZnEq = Zn% + 1.14 x Pb% + 0.044 x Ag (g/t)

14.12 Mined
 Out and Sterilized Areas

Due to the fact that the Porco mine, as shown in plan view in Figure 14-24, has been and continues to be in production for a significant number of years, it is extremely important to identify and exclude areas that are no longer available for future mining. This includes areas that have development and ramping, areas that have been mined out, areas that have been sterilized by mining operations or other reasons and pillars that have been left behind but not accessible. Figure 14-25 shows a long section view of the block model coded into the existing underground development, pillars, mined out areas along with areas sterilized be mining or geotechnical hazards.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-29

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**Figure 14-24: Plan View of Development, Pillars, Mined Out and Sterilized**

**Figure 14-25: Classified Resources with Mined Out and Sterilized Areas (Dark Blue)**

![](ex99-30_100.jpg)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-30

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Figure 14-26 illustrates the long section view of the classified resources with the classified block model for the Porco Mine with the development, pillars, mined out and sterilized material colour coded in blue.

**Figure 14-26: Classified Resources with Mined Out and Sterilized Areas (Dark Blue)**

![](ex99-30_101.jpg)

14.13 Resource
 Validation

A graphical validation was completed on the block model illustrated in Figure 14-27 through Figure 14-29. This type of validation serves the following purposes:

● Checks the reasonableness of the estimated grades based on the estimation plan and the nearby composites;

● Checks that the general drift and the local grade trends compare to the drift and local grade trends of the composites;

● Ensures that all blocks in the core of the deposit have been estimated;

● Checks that topography has been properly accounted for;

● Checks against manual approximate estimates of tonnages to determine reasonableness; and

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● Inspects for and explains potentially high-grade block estimates in the neighborhood of the extremely high assays.

Cross sections, long sections and plans were used to digitally check the block model; these showed the block grades and composites. There was no indication that a block was wrongly estimated, and it appears that block grades could be explained as a function of the surrounding composites and the applied estimation plan.

The validation techniques included the following:

● Visual inspections on a section-by-section and plan-by-plan basis;

● Use of grade-tonnage curves;

● Swath plots comparing kriged estimated block grades with inverse distance and nearest neighbor estimates; and

● Inspection of histograms showing distance from first composite to nearest block, and average distance to blocks for all composites which gives a quantitative measure of confidence that blocks are adequately informed in addition to assisting in the classification of resources.

A full set of cross sections, long sections and plans were used to digitally check the block model; these showed the block grades and composites. There was no indication that a block was wrongly estimated, and it appears that every block grade could be explained as a function of the surrounding composites and the applied estimation plan.

**Figure 14-27: Long Section View of Porco Block Model with ZnEq Cut-off Grades**

![](ex99-30_104.jpg)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-32

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**Figure 14-28: Long Section View of Measured, Indicated and Inferred Blocks with ZnEq Cut-off Grades along with Mined Out and Sterilized Areas**

**Figure 14-29: Long Section View of Inferred Blocks with ZnEq Cut-off Grades along with Mined Out and Sterilized Areas**

![](ex99-30_107.jpg)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-33

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14.14 Sensitivity
 of the Block Model to Selection Cut-off Grade

The mineral resources are not particularly sensitive to the selection of cut-off grade. Table 14-11 shows the total resources for all metals at varying ZnEq cut-off grades. The reader is cautioned that these values should not be misconstrued as a mineral reserve. The reported quantities and grades are only presented as a sensitivity of the resource model to the selection of cut-off grades.

Note that the base case cut-off grades presented are based on potentially underground, mineable resources at the base case of 11.2% zinc equivalent.

**Table 14-11: Sensitivity Analyses at Various ZnEq Cut-off Grades for Measured, Indicated and Inferred Resources**

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Classification** | **Cut-off** | **Tonnes** | **ZnEq** | **Sg** | **Thickness** | **Zn** | **Ag** | **Pb** |
| &nbsp;&nbsp;Measured | >=14 | 485576 | 29.44 | 3.28 | 0.91 | 18.49 | 224.64 | 0.94 |
| &nbsp;&nbsp;Measured | >=12 | 544446 | 27.67 | 3.26 | 0.91 | 17.51 | 207.59 | 0.90 |
| &nbsp;&nbsp;Measured | >=11.2 | 566213 | 27.05 | 3.25 | 0.91 | 17.17 | 201.71 | 0.88 |
| &nbsp;&nbsp;Measured | >=10 | 610875 | 25.84 | 3.23 | 0.93 | 16.52 | 190.02 | 0.85 |
| &nbsp;&nbsp;Measured | >=8 | 688137 | 23.95 | 3.20 | 0.93 | 15.45 | 172.82 | 0.79 |
| &nbsp;&nbsp;Measured | >=6 | 762178 | 22.31 | 3.18 | 0.93 | 14.47 | 158.91 | 0.74 |
| &nbsp;&nbsp;Measured | >=4 | 829331 | 20.91 | 3.16 | 0.92 | 13.60 | 147.97 | 0.70 |
| &nbsp;&nbsp;Measured | >=2 | 872265 | 20.03 | 3.14 | 0.91 | 13.04 | 141.35 | 0.68 |
| &nbsp;&nbsp;Indicated | >=14 | 213442 | 27.14 | 3.27 | 0.64 | 17.81 | 183.96 | 1.09 |
| &nbsp;&nbsp;Indicated | >=12 | 239157 | 25.61 | 3.24 | 0.64 | 16.86 | 171.82 | 1.05 |
| &nbsp;&nbsp;Indicated | >=11.2 | 252989 | 24.85 | 3.23 | 0.64 | 16.38 | 165.89 | 1.02 |
| &nbsp;&nbsp;Indicated | >=10 | 277066 | 23.61 | 3.21 | 0.64 | 15.63 | 156.26 | 0.97 |
| &nbsp;&nbsp;Indicated | >=8 | 314419 | 21.87 | 3.18 | 0.65 | 14.56 | 142.77 | 0.90 |
| &nbsp;&nbsp;Indicated | >=6 | 347785 | 20.45 | 3.16 | 0.65 | 13.67 | 132.21 | 0.85 |
| &nbsp;&nbsp;Indicated | >=4 | 379379 | 19.17 | 3.14 | 0.65 | 12.84 | 123.19 | 0.79 |
| &nbsp;&nbsp;Indicated | >=2 | 393039 | 18.61 | 3.13 | 0.65 | 12.47 | 119.43 | 0.77 |
| &nbsp;&nbsp;Inferred | >=14 | 842537 | 23.01 | 3.23 | 0.46 | 16.40 | 125.09 | 0.97 |
| &nbsp;&nbsp;Inferred | >=12 | 975843 | 21.64 | 3.20 | 0.46 | 15.38 | 118.26 | 0.93 |
| &nbsp;&nbsp;Inferred | >=11.2 | 1006855 | 21.33 | 3.20 | 0.46 | 15.16 | 116.62 | 0.92 |
| &nbsp;&nbsp;Inferred | >=10 | 1050930 | 20.88 | 3.19 | 0.46 | 14.85 | 113.91 | 0.90 |
| &nbsp;&nbsp;Inferred | >=8 | 1232966 | 19.11 | 3.16 | 0.47 | 13.61 | 103.26 | 0.84 |
| &nbsp;&nbsp;Inferred | >=6 | 1340873 | 18.12 | 3.14 | 0.47 | 12.95 | 96.94 | 0.79 |

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PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-34

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Classification** | **Cut-off** | **Tonnes** | &nbsp;&nbsp;**ZnEq** | **Sg** | **Thickness** | **Zn** | **Ag** | **Pb** |
|  | >=4 | 1436731 | 17.25 | 3.12 | 0.48 | 12.34 | 92.03 | 0.76 |
|  | >=2 | 1482966 | 16.81 | 3.12 | 0.47 | 12.02 | 89.71 | 0.74 |

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Notes:

1) The current Resource Estimate was prepared by Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd.

2) All mineral resources have been estimated in accordance with Canadian Institute of Mining and Metallurgy and Petroleum (CIM) definitions, as required under National Instrument 43-101 (NI43-101).

3) The Mineral Resource Estimate was prepared using a 11.2% zinc equivalent cut-off grade. Cut-off grades were derived from $25.20/oz silver, $1.38/lb zinc and $1.20/lb lead, and process recoveries of 94.3% for zinc, 75.6% for lead, and 88.6% for silver. This cut-off grade was based on current smelter agreements and total OPEX costs of $125.02/t based on 2022 actual costs plus capital costs of $21.79/t. All prices are stated in $USD.

4) An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

5) Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not account for a resource's mineability, selectivity, mining loss, or dilution. All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

14.15 Mineral
 Resource Statement

Table 14-12 shows the Mineral Resource Statement for the Porco deposit. Table 14-13 illustrates the mineral resources defined within the Hundimiento and Central areas.

The Qualified Person evaluated the resource in order to ensure that it meets the condition of "reasonable prospects of eventual economic extraction" as suggested under NI 43-101. The criteria considered were confidence, continuity and economic cut-off. The resource listed below is considered to have "reasonable prospects of eventual economic extraction".

**Table 14-12: Base-Case Total Mineral Resources at 11.2% ZnEq Cut-off**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Total Porco 2023 Mineral Resources** | **Total Porco 2023 Mineral Resources** | **Total Porco 2023 Mineral Resources** | **Total Porco 2023 Mineral Resources** | **Total Porco 2023 Mineral Resources** | **Total Porco 2023 Mineral Resources** |
| &nbsp;&nbsp;**Mine** | **Category** | **Tonnes ('000)** | **Zn (%)** | **Pb (%)** | **Ag (g/t)** |
| &nbsp;&nbsp;**Porco** | Measured | 566 | 17.17 | 0.88 | 202 |
| &nbsp;&nbsp;**Porco** | Indicated | 253 | 16.38 | 1.02 | 166 |
| &nbsp;&nbsp;**Porco** | Total M+I | 819 | 16.92 | 0.92 | 191 |
| &nbsp;&nbsp;**Porco** | Inferred | 1007 | 15.16 | 0.92 | 117 |

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Notes:

1) The current Resource Estimate was prepared by Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd.

2) All mineral resources have been estimated in accordance with CIM definitions, as required under NI43-101.

3) The Mineral Resource Estimate was prepared using a 10.6% zinc equivalent cut-off grade. Cut-off grades were derived from $25.20/oz silver, $1.38/lb zinc and $1.20/lb lead, and process recoveries of 91% for zinc, 70% for lead, and 89.7% for silver. This cut-off grade was based on current smelter agreements and total OPEX costs of $120.22/t based on 2022 actual costs plus capital costs of $48.68/t, with process recoveries of 91.0% for zinc, 70.0% for lead, and 89.7% for silver. All prices are stated in $USD.

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4) An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

5) Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not account for a resource's mineability, selectivity, mining loss, or dilution. All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

**Table 14-13: Base-Case Total Mineral Resources at 11.2% ZnEq Cut-off Split by Area**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Porco Mineral Resources** | **Porco Mineral Resources** | **Porco Mineral Resources** | **Porco Mineral Resources** | **Porco Mineral Resources** | **Porco Mineral Resources** |
| &nbsp;&nbsp;**Mine** | **Category** | **Tonnes ('000)** | **Zn (%)** | **Pb (%)** | **Ag (g/t)** |
| &nbsp;&nbsp;**Hundimiento** | Measured | 155 | 13.78 | 1.05 | 190.04 |
| &nbsp;&nbsp;**Hundimiento** | Indicated | 74 | 15.79 | 1.03 | 165.74 |
| &nbsp;&nbsp;**Hundimiento** | Total M+I | 229 | 14.43 | 1.05 | 182.20 |
| &nbsp;&nbsp;**Hundimiento** | Inferred | 458 | 14.57 | 0.88 | 111.26 |
| &nbsp;&nbsp;**Central** | Measured | 41 | 18.45 | 0.82 | 206.11 |
| &nbsp;&nbsp;**Central** | Indicated | 179 | 16.63 | 1.02 | 165.95 |
| &nbsp;&nbsp;**Central** | Total M+I | 590 | 17.89 | 0.88 | 193.92 |
| &nbsp;&nbsp;**Central** | Inferred | 549 | 15.65 | 0.95 | 121.08 |
| &nbsp;&nbsp;**Total Porco** | Measured | 566 | 17.17 | 0.88 | 202 |
| &nbsp;&nbsp;**Total Porco** | Indicated | 253 | 16.38 | 1.02 | 166 |
| &nbsp;&nbsp;**Total Porco** | Total M+I | 819 | 16.92 | 0.92 | 191 |
| &nbsp;&nbsp;**Total Porco** | Inferred | 1007 | 15.16 | 0.92 | 117 |

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Notes:

1) The current Resource Estimate was prepared by Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd.

2) All mineral resources have been estimated in accordance with CIM definitions, as required under NI43-101.

3) The Mineral Resource Estimate was prepared using a 10.6% zinc equivalent cut-off grade. Cut-off grades were derived from $25.20/oz silver, $1.38/lb zinc and $1.20/lb lead, and process recoveries of 91% for zinc, 70% for lead, and 89.7% for silver. This cut-off grade was based on current smelter agreements and total OPEX costs of $120.22/t based on 2022 actual costs plus capital costs of $48.68/t, with process recoveries of 91.0% for zinc, 70.0% for lead, and 89.7% for silver. All prices are stated in $USD.

4) An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

5) Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not account for a resource's mineability, selectivity, mining loss, or dilution. All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 14-36

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14.16 Discussion
 with Respect to Potential Material Risks to the Resources

The current political and socio-economic climate in Bolivia poses risks and uncertainties that could delay or even stop development as reported within the Fraser Institute Annual Report 2022 where Bolivia ranks very low in many non-technical metrics. Bolivia has been ranked consistently low for the past five years and ranks in the lower quartile on all metrics that gauge risk and uncertainty. It is difficult to gauge or qualify the level or extents of the risks however, all companies working in Bolivia must continue to be aware of the potential risks and develop mitigation strategies. A significant risk related to the Santacruz Bolivian mineral assets and in particular the mineral resources and mineral reserves is the significant artisanal activity that continues to exist. This activity is not only a socio-economic risk but also effects access to resources and reserves along with potentially resulting in potential sterilization of mineral resources.

Apart from political and socio-economic risks there are no other known environmental, permitting, legal, taxation, title or other relevant factors that materially affect the resources apart from commodity price fluctuations particularly on the downside.

The Porco deposit consists of very many high-grade thin veins. These types of deposits are very sensitive to grade as the size and geometry must be economically viable as they must support selective mining methods and be able to withstand high levels of dilutive material.

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15 MINERAL RESERVE ESTIMATE

15.1 Summary

This January 1, 2023 reserve estimate represents the validation of Santacruz's internally- generated mineral reserve estimate by the QP. This was done by conducting the following activities:

● An NSR calculation and cut-off grade (COG) was developed by the QP using data provided by SC;

● The reserve estimation methodology was reviewed, checked, and approved by the QP;

● Mine technical staff prepared a Life of Mine Plan (LOM) for the deposits using the NSR and COG provided by the QP. The LOM plan was prepared specifically for this reserve estimation, as the annual budget includes mining in inferred resources; and

● All LOM models were downloaded and reviewed by the QP for conformance to the methodology, proper application of the NSR cut-off grade, and correct application of agreed upon dilution and recovery factors.

The QP is satisfied that this exercise resulted in a valid reserve determination.

15.2 Definitions

A Mineral Reserve is the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at Pre-Feasibility or Feasibility level as appropriate that include application of Modifying Factors. This Feasibility Study includes adequate information and considerations on mining, processing, metallurgical, infrastructure, economic, marketing, environmental and other relevant factors that demonstrate, at the time of reporting, that economic extraction could reasonably be justified.

Mineral Reserves are those parts of Mineral Resources which, after the application of all mining factors, result in an estimated tonnage, and grade which, in the opinion of the Qualified Person(s) making the estimates, is the basis of an economically viable project after taking account of all relevant Modifying Factors. Mineral Reserves are inclusive of diluting material that will be mined in conjunction with the Mineral Reserves and delivered to the treatment plant or equivalent facility. The term "Mineral Reserve" need not necessarily signify that extraction facilities are in place or operative or that all governmental approvals have been received. It does signify that there are reasonable expectations of such approvals.

Mineral Reserves are subdivided in order of increasing confidence into Probable Mineral Reserves and Proven Mineral Reserves. A Probable Mineral Reserve has a lower level of confidence than a Proven Mineral Reserve.

SANTACRUZ SILVER MINING LTD. \| PORCO TECHNICAL REPORT PAGE 15-1

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The reserve classifications used in this report conform to the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) classification of NI 43-101 resource and reserve definitions and Companion Policy 43-101CP. These are listed below.

A "Proven Mineral Reserve" is the economically mineable part of a Measured Mineral Resource. A Proven Mineral Reserve implies a high degree of confidence in the Modifying Factors.

Application of the Proven Mineral Reserve category implies that the Qualified Person has the highest degree of confidence in the estimate with the consequent expectation in the minds of the readers of the report. The term should be restricted to that part of the deposit where production planning is taking place and for which any variation in the estimate would not significantly affect potential economic viability of the deposit. Proven Mineral Reserve estimates must be demonstrated to be economic, at the time of reporting, by at least a Pre-Feasibility Study. Within the CIM Definition standards the term Proved Mineral Reserve is an equivalent term to a Proven Mineral Reserve.

A "Probable Mineral Reserve" is the economically mineable part of an Indicated Mineral Resource, and in some circumstances a Measured Mineral Resource. The confidence in the Modifying Factors applying to a Probable Mineral Reserve is lower than that applying to a Proven Mineral Reserve.

15.3 NSR
 and COG Determinations

15.3.1 Operating
 Costs

Operating costs for the reserve estimation were based on actual costs derived from 2022 operations, as summarized in Table 15-1.

**Table 15-1: Actual Operating Costs for 2022 by Category**

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| &nbsp;&nbsp;**Category** | **$/t** |
| &nbsp;&nbsp;Mining | &nbsp;&nbsp;94.68 |
| &nbsp;&nbsp;Processing | &nbsp;&nbsp;15.04 |
| &nbsp;&nbsp;G&A | &nbsp;&nbsp;15.30 |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**125.02** |

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15.3.2 Metal
 Prices

The metal prices used to determine the 2023 Mining Reserve are as follows:

● Lead $1.00 /lb;

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● Zinc $1.15 /lb; and

● Silver $21.00 /oz.

The derivation and rationale for these price selections is discussed in discussed in Section 19.

15.3.3 Metallurgical
 Recoveries

The metallurgical recoveries of payable metals were based on 2022 mill operating performance as follows:

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|:---|:---|
| Lead: | 75.6% to the lead concentrate |
| Zinc: | 94.3% to the zinc concentrate |
| Silver: | A total of 88.6% recovery; 50.2% to the lead concentrate and 38.5% to the zinc concentrate. |

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15.3.4 Smelter
 Terms

There are two concentrates that are sent to the Antofagasta smelter in Chile for shipment overseas. Both concentrates are sold to Glencore. Smelter terms were based on actual invoicing. These include typical payment terms for all payable metals (Pb, Zn, Ag) and deductions for deleterious elements (Sb and Bi in the zinc concentrate and SiO2 in the lead concentrate. Off- site costs for freight, port fees, sampling, and silver refining are included in the analysis at the actual rates.

15.4 Net
 Smelter Return and Cut-off Criteria

The combination of all factors discussed in this section results in the following NSR formula for the 2023 Mining Reserve:

*NSR = $9.36 x Zn% + 10.63 x Pb% + 0.41 x Ag (g/t)*

 

Cut-off criteria was developed based on a ZnEq formula as follows:

*ZnEq = Zn% + 1.14 x Pb% + 0.044 x Ag (g/t)*

 

A cut-off grade of 13.4% ZnEq was applied to the reserve estimation based on this equation.

15.5 Estimation
 Methodology

The reserves were estimated in Deswik. The NSR formula and ZnEq were applied to the block model. Stope optimization was then performed to the resource to generate stope shapes for evaluation.

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Table 15-2 shows the stope optimization parameters that were used for the two mines at Porco, segregated by mine and stoping method.

**Table 15-2: Stope Optimization Parameters by Mine and Stoping Method**

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| &nbsp;&nbsp;<br> **Method** | &nbsp;&nbsp;&nbsp;**Min Stope Width (m)** | &nbsp;&nbsp;&nbsp;**Minimum Stope Dip** | &nbsp;&nbsp;**Min. Waste Pillar Width (m)** | &nbsp;&nbsp;&nbsp;**Max. Stope Width (m)** | &nbsp;&nbsp;**Min. Stope Height (m)** | &nbsp;&nbsp;**Max Stope Height 9m)** |
| &nbsp;&nbsp;SLOS All | 1.10 | 30 | 5 | 10 | 10 | 12 |
| &nbsp;&nbsp;Shrinkage All | 0.80 | 30 | 5 | 10 | 15 | 22 |

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Dilution and recovery factors were varied by stoping method as follows:

● Development: 95% recovery without dilution applied;

● Sublevel Open Stoping mining method: 85% recovery and 12.5% dilution; and

● Shrinkage Stoping: 80% recovery and 10% dilution.

Once generated, solids below the COG of 12.7% ZnEq were then eliminated as well as any inferred resources.

A development layout was then prepared for each stope to determine access requirements. A development and production schedule were then prepared in Deswik.

15.6 Mineral
 Reserve Estimate

The Mineral Reserve Estimate for Porco Mine is shown in Table 15-3.

**Table 15-3: Mineral Reserve Estimate for Porco Mine (January 1, 2023)**

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|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Mine** | **Category** | **Tonnes** | **Zn (%)** | **Pb (%)** | **Ag (g/t)** |
| &nbsp;&nbsp;**Hundimiento** | Proven | 95647 | 10.35 | 0.73 | 208 |
| &nbsp;&nbsp;**Hundimiento** | Probable | 48381 | 11.99 | 0.94 | 192 |
| &nbsp;&nbsp;**Hundimiento** | Total | 144028 | 10.90 | 0.80 | 203 |
| &nbsp;&nbsp;**Central** | Proven | 66202 | 15.67 | 0.61 | 143 |
| &nbsp;&nbsp;**Central** | Probable | 108943 | 13.30 | 0.69 | 120 |
| &nbsp;&nbsp;**Central** | Total | 175145 | 14.19 | 0.66 | 129 |

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| &nbsp;&nbsp;**Mine** | **Category** | **Tonnes** | **Zn (%)** | **Pb (%)** | **Ag (g/t)** |
| &nbsp;&nbsp;**Total Porco** | Proven | 161849 | 12.53 | 0.68 | 181 |
| &nbsp;&nbsp;**Total Porco** | Probable | 157323 | 12.90 | 0.77 | 142 |
| &nbsp;&nbsp;**Total Porco** | Total | 319172 | 12.71 | 0.72 | 162 |

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These reserves could be impacted by illegal mining activities, changes to mine operating costs, metallurgical recoveries, changes to permitting status, and the availability of tailings storage. No significant variations from current assumptions for these aspects are currently anticipated.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 15-5

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16 MINING METHODS

16.1 Introduction

The Porco Mine has been in continuous operation for 500 years. The application of mining methods has thus been an adaptation of mining equipment technologies, evaluation and monitoring tools to the specific mineralized zones. The last decade of operations under the guidance of Glencore, the mine has seen a move to more mechanized methods where applicable to improve safety performance and mine productivity.

The deposits within Porco Mine exhibit various characteristics. The steeply dipping and relatively wide mineralized zones were intuitively adaptable to mechanization, however, more narrow and irregular zones still favor the use of conventional, more selective methods. In addition to historical and empirical knowledge about the deposit, a systematic evaluation included such other deposit qualities as:

● Safety aspects, Environmental risks, Social impacts;

● Shape, geometry, consistency, and volume;

● Both mineralization and wall rock quality (strength, Fracture characterizations, in-situ strength, regional stress);

● Stability, and Support requirements;

● Grades, NSR Value, potential extraction rate;

● Mechanization/automation, use of gravity, flexibility and adaptability; and

● Unit costs, time to production, dilution, development requirements.

Based on continuously evaluated performance of the selected mining system, improvements are always being considered based on the aforementioned criteria and economic performance.

The mine currently operates at a production rate of approximately 540 t/d with a current LOM of two years based on the current reserve.

16.2 Geotech
 Analysis & Recon

Geotechnical analysis is a useful tool at Porco to determine support requirements and to assess stability to rock conditions mine-wide. Analysis was also required when considering the use of Sub Level Stoping in the Hundimiento Zone at Porco. Currently this exploitation method is applied in the Hundimiento Zone in mineral structures with rock mass characteristics (RMR) from fair to good in the specific mineralized areas where the hanging and footwalls are very competent and the mineral structure is less competent.

SANTACRUZ SILVER MINING LTD. \| PORCO TECHNICAL REPORT PAGE 16-1

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The geomechanical characterization is shown in the following table.

**Table 16-1: Geomechanical Characterization**

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;<br> **Structural Domain** | &nbsp;&nbsp;&nbsp;&nbsp;<br> **RMR** | <br> **Type** | <br> **Quality** | &nbsp;&nbsp;**Max Openings (m)** | &nbsp;&nbsp;**Self- Sustainability Time** | &nbsp;&nbsp;<br> **Excavation Length (m)** | <br> **AR**<br> **Observations** |
| &nbsp;&nbsp;<br> Hangingwall | &nbsp;&nbsp;&nbsp;<br> 45 a 55 | R III-B | Regular B | 3.9 | 2 Months | 2.4 | &nbsp;&nbsp;&nbsp;&nbsp;<br> Stable Zone |
| &nbsp;&nbsp;<br> Hangingwall | &nbsp;&nbsp;&nbsp;<br> 45 a 55 | R III-A | Regular A | 6.2 | 2 Years | 3.0 | &nbsp;&nbsp;&nbsp;&nbsp;<br> Stable Zone |
| &nbsp;&nbsp;<br> On the Vein | &nbsp;&nbsp;&nbsp;<br> 35 a 45 | R IV-A | Bad A | 2.5 | 2 Weeks | 1.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Potentially Unstable Zone |
| &nbsp;&nbsp;<br> On the Vein | &nbsp;&nbsp;&nbsp;<br> 35 a 45 | R IV-B | Regular B | 3.9 | 2 Months | 2.4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Potentially Unstable Zone |
| &nbsp;&nbsp;<br> Footwall | &nbsp;&nbsp;&nbsp;<br> 50 a 65 | R III-A | Regular A | 4.9 | 7 Months | 2.4 | &nbsp;&nbsp;&nbsp;&nbsp;<br> Stable Zone |
| &nbsp;&nbsp;<br> Footwall | &nbsp;&nbsp;&nbsp;<br> 50 a 65 | R II | Good | 8.0 | 8 Years | 3.6 | &nbsp;&nbsp;&nbsp;&nbsp;<br> Stable Zone |

---

Source: Santacruz (2022)

Due to the geological characteristics and parameters of the rock mass in the structural domains of Mina Porco, the Sub Level Stoping exploitation method has been selected for mineral vein structures (vein/mine) with widths greater than 1.0 m and with dips greater than 60°.

**Table 16-2: Geomechanical Stability Analysis**

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;<br>**Stability** | **Stope Design Dimensions - Stability Status** | **Stope Design Dimensions - Stability Status** | **Stope Design Dimensions - Stability Status** | **Stope Design Dimensions - Stability Status** | **Stope Design Dimensions - Stability Status** | **Stope Design Dimensions - Stability Status** | **Stope Design Dimensions - Stability Status** | **Stope Design Dimensions - Stability Status** | **Stope Design Dimensions - Stability Status** |
| &nbsp;&nbsp;<br>**Stability** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Hangingwall (Regular R III-B)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Hangingwall (Regular R III-B)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Hangingwall (Regular R III-B)** | &nbsp;&nbsp;&nbsp;**On the Vein (Bad R IV-A)** | &nbsp;&nbsp;&nbsp;**On the Vein (Bad R IV-A)** | &nbsp;&nbsp;&nbsp;**On the Vein (Bad R IV-A)** | &nbsp;&nbsp;&nbsp;&nbsp;**Footwall (Regular R III-A)** | &nbsp;&nbsp;&nbsp;&nbsp;**Footwall (Regular R III-A)** | &nbsp;&nbsp;&nbsp;&nbsp;**Footwall (Regular R III-A)** |
| &nbsp;&nbsp;**Status** | &nbsp;&nbsp;&nbsp;&nbsp;**17 x**<br> **40 m** | &nbsp;&nbsp;&nbsp;&nbsp;**15 x**<br> **40 m** | **15 x 20**<br> **m** | **17 x 40**<br> **m** | &nbsp;&nbsp;&nbsp;&nbsp;**15 x**<br> **40 m** | &nbsp;&nbsp;&nbsp;&nbsp;**15 x**<br> **20 m** | **17 x 40**<br> **m** | **15 x 40**<br> **m** | **15 x 20**<br> **m** |
| &nbsp;&nbsp;Stable without Support | X | X | X |  |  |  | X | X | X |
| &nbsp;&nbsp;Transition |  |  |  |  | X | X |  |  |  |
| &nbsp;&nbsp;Stable with Support |  |  |  | X |  |  |  |  |  |

---

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 16-2

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;<br>**Stability Status** | **Stope Design Dimensions - Isoprobability Stability Contours** | **Stope Design Dimensions - Isoprobability Stability Contours** | **Stope Design Dimensions - Isoprobability Stability Contours** | **Stope Design Dimensions - Isoprobability Stability Contours** | **Stope Design Dimensions - Isoprobability Stability Contours** | **Stope Design Dimensions - Isoprobability Stability Contours** | **Stope Design Dimensions - Isoprobability Stability Contours** | **Stope Design Dimensions - Isoprobability Stability Contours** | **Stope Design Dimensions - Isoprobability Stability Contours** |
| &nbsp;&nbsp;<br>**Stability Status** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Hangingwall (Regular R III-B)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Hangingwall (Regular R III-B)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Hangingwall (Regular R III-B)** | &nbsp;&nbsp;&nbsp;**On the Vein (Bad R IV-A)** | &nbsp;&nbsp;&nbsp;**On the Vein (Bad R IV-A)** | &nbsp;&nbsp;&nbsp;**On the Vein (Bad R IV-A)** | &nbsp;&nbsp;&nbsp;&nbsp;**Footwall (Regular R III-A)** | &nbsp;&nbsp;&nbsp;&nbsp;**Footwall (Regular R III-A)** | &nbsp;&nbsp;&nbsp;&nbsp;**Footwall (Regular R III-A)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;**17 x**<br> **40 m** | &nbsp;&nbsp;&nbsp;&nbsp;**15 x**<br> **40 m** | **15 x 20**<br> **m** | **17 x 40**<br> **m** | &nbsp;&nbsp;&nbsp;&nbsp;**15 x**<br> **40 m** | &nbsp;&nbsp;&nbsp;&nbsp;**15 x**<br> **20 m** | **17 x 40**<br> **m** | **15 x 40**<br> **m** | **15 x 20**<br> **m** |
| &nbsp;&nbsp;Stable without Support | &nbsp;&nbsp;&nbsp;&nbsp;86% | &nbsp;&nbsp;&nbsp;&nbsp;91% | &nbsp;&nbsp;&nbsp;&nbsp;95% |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;83% | &nbsp;&nbsp;&nbsp;&nbsp;85% | &nbsp;&nbsp;&nbsp;&nbsp;96% |
| &nbsp;&nbsp;Transition |  |  |  |  | 5% | 6% |  |  |  |
| &nbsp;&nbsp;Stable with Support |  |  |  | 4% |  |  |  |  |  |

---

Source: Santacruz (2022)

16.3 Overview

The active production originates from two main areas; Hundimiento and Central zones. Each mineralized zone employs one of two mining methods based on vein and surrounding ground characteristics. The Porco deposit consists of multiple, relatively thin high-grade veins. The mining methods used vary according to the continuity, dip, and width of these veins. Current mining methods employed include sublevel longhole stoping with backfill, shrinkage stoping.

● "Hundimiento" is the more modern section of the mine and is developed mostly with trackless methods using an access ramp to move men and materials between levels. The mineralized zones are predominantly wider and steeper dipping thus, stoping utilizes mechanized sub level stoping with backfill. Some shrinkage stoping is also done in this area where applicable. All waste rock stays in the mine; and

● "Central" utilizes conventional shrinkage mining exclusively. Veins are generally thin and high grade and the wall rock competent. Mineralized material is hauled via rail on each active level to the shaft for hoisting to surface. Levels are spaced at a nominal 45 m and level connections are via manway raises and the main shaft. All waste rock stays in the mine.

Currently each mining area provides roughly 50% of the total mine production.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 16-3

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**Figure 16-1: Underground Long Section of Both Mining Zones**

![](ex99-30_108.jpg)

Source: Santacruz (2023)

16.4 Mine
 Design

16.4.1 Stoping

Then Long hole method of stoping which is used in the Hundimiento zone uses mechanized and trackless equipment to prepare each stoping block. It begins with driving two main levels 45 m vertically apart with a section of 3.0 m x 3.5 m with their respective counter galleries and entrances every 40 m (section 3.0 x 3.0 m).

Two sublevels with a section of 3.0 x 3.5 m (1<sup>st</sup> sublevel and 2<sup>nd</sup> sublevel) are also developed for drilling and subsequent exploitation. All sublevels have a height of 13 m vertically, leaving a sill pillar of 5 m below the upper level for stability.

The primary development (ramps, counter galleries, cutouts, entrances, etc.) have support on the back and ribs with welded steel mesh and Hydrabolt bolts. The secondary development (levels, sublevels, etc.) have support on the back and ribs with welded steel mesh and Split Set bolts.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 16-4

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**Figure 16-2: Long Section of Typical Sublevel Stoping Operation**

![](ex99-30_109.jpg)

Source: Santacruz (2022)

Depending on the dip, the true stope heights are approximately 10 m.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 16-5

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**Figure 16-3: Cross Section of Typical Sublevel Stoping Operation**

![](ex99-30_110.jpg)

Source: Source: Santacruz (2022)

The stoping progresses upwards from the lowest mucking level with backfill placed behind the mining front to minimize the unsupported time of the stope walls. Once each stope panel is cleaned, they are filled through the upper sublevel (1<sup>st</sup> SUBN LEVEL) to generate a solid floor from which to drill and clean the next sublevel.

According to the 2022 production statistics, the contribution from the stopes using the Sub Level Stoping method represents approximately 19% of Mina Porco's total production. The mechanization of the Sub Level Stoping exploitation method is a safe method because the miner's direct exposure to the rock is minimized.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 16-6

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Among the most outstanding advantages are:

● The unit operating cost is low compared to conventional stoping;

● Higher production is possible and blending is facilitated;

● Greater safety performance;

● The mining cycle is continuous and independent; and

● No type of support is required during operation.

The disadvantages of the method are:

● Selectivity is low;

● Possibility of dilution if drilling and blasting are not controlled;

● There is a 95% recovery; and

● Variable fragmentation from stopes.

16.4.1.1 Shrinkage
 Stoping Method

Shrinkage is stoping method used for all stopes in the Central zone. It has smaller stope dimensions to allow rapid mining of smaller stopes and less mineral inventory stored in the stope. Dimensions of each panel are 15 m long and 20 m high.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 16-7

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**Figure 16-4: Typical Long Section of Shrinkage Stope**

![](ex99-30_113.jpg)

Notes:

1) Long Raise (1.2 m x 1.2 m x 20 m long)

2) Short Raise (1.2 m x 1.2 m x 3.0 m long)

3) Intermediate Raise (1.5 m x 2.2 m)

4) Ore bins

5) Distance between short raises 3.7 m

6) Pillar (1.0 m x 1.8 m)

7) Pillars (2.5 m x 3.0 m)

8) Crown Pillar (3.0 m)

9) Stope Height (20.0 m)

Source: Santacruz (2022)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 16-8

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Shrinkage is used in veins with dips greater than 45° and with widths less than one meter and geomechanical characteristics of the rock mass of regular quality in relation to the hanging and footwalls of the vein.

The advantages of the mining method are the following:

● It is a selective method for narrow veins (less than one meter);

● Better control of dilution depending on the strike and dip of the vein;

● Better control of the fragmentation of broken material;

● Better control and stability of the rock mass during exploitation; and

● Consistent production as stopes are being emptied at completion.

The disadvantages of the method are the following:

● It is not very productive, so many stopes are needed for consistent production;

● Higher unit cost compared to a mechanized method;

● Greater exposure of miners to the face; and

● Low recovery of broken material (85% recovery).

16.4.2 Development

Mine Access to Hundimiento section is trackless via ramps which access all mining levels from the surface and are used to haul mineralized material, as well as men and materials. Central Zone is still accessed via shaft and rail drifts.

The methods for driving development openings have evolved over the past decade or so in response to a period of high accident frequency rates where it was determined that the main cause of severe injuries was related to rock falls. A systematic and progressive program was established to implement controls and methods to mitigate exposure to this danger.

Until 2014, support was only carried out with timber in the worst sectors according to informal evaluations of the rock conditions. Subsequently, the specific installation of support bolts (Split set or Hydrabolt) was implemented in the back of the drifts according to the evaluation of the rock mass. Currently the primary developments (ramps, counter galleries, cutouts, entrances, etc.) have support in the back and ribs with steel mesh and hydrabolts bolts.

The galleries of the secondary developments (levels, sublevels, etc.) are supported in the back and ribs with electro-welded mesh and Split Set bolts. Figure 16-5 illustrates the progression of methodology.

Subsequently, the specific installation of support bolts (Split set or Hydrabolt) was implemented on the roof of the gallery according to the evaluation of the rock mass.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 16-9

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**Figure 16-5: Evolution of the Rock Mass Support System**

![](ex99-30_114.jpg)

Source: Glencore (2021)

In 2017, the installation of bolts (Split set or Hydrabolt) and electro-welded mesh on the roof of the gallery was standardized with a tolerance margin of 10 to 15 m without support on the advance front according to the quality assessment of the rock mass.

Currently, the support standard consists of the installation of bolts and electro-welded mesh on the roof and sides of the gallery (up to the gradient) to the advance front using electro-hydraulic equipment applying the 2 golden rules:

● Meter advancing, meter sustained; and

● Drilled hole, bolt installed.

The Central Zone is accessed and developed with a completely different system, with access and mineral transport via shaft and rail haulage on multiple levels. Most development is driven with jackleg drills and in some instances, overshot rail muckers. The transition to mechanized methods is slowly taking hold in the Central Zone.

16.5 Mine
 Services

16.5.1 Ventilation
 System

The ventilation system is independent for the zones: Central and Hundimiento.

For the modelling and simulation of the ventilation system, the Ventsim software is used, which facilitates the monitoring and evaluation of the ventilation system.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 16-10

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Often illegal miners disrupt and damage or impair the ventilation system and flow through the mine. This is done by blocking the ventilation exhaust raises or using them for extraction, destroying ventilation fans, or stealing power cables.

16.5.1.1 Ventilation
 System – Central Zone

Since this area is mined conventionally with a minimum of diesel equipment, the flow requirements are modest. The ventilation of this area is simple and consists of two main natural inlets of fresh air from the surface to two main Shafts that lead the fresh air to the deeper levels and subsequently the air is led to the work fronts with exhaust air outlets through vertical raises.

**Figure 16-6: Ventilation Scheme – Central Zone**

The first entry of fresh air is through the San Cayetano Level to the New Shaft, reaching Level minus 330. The second entrance is through an Auxiliary Ramp from the surface to the Old Shaft reaching Level minus 240. According to the evaluation of flow monitoring and the requirement, the balance is shown in Table 16-3.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 16-11

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**Table 16-3: Balance of Air Flows – Central Zone**

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| | | | **Airflow Balance** | **Airflow Balance** | **Airflow Balance** |
| &nbsp;&nbsp;**Requirements Distribution** | **m3/min** | **cfm** | &nbsp;&nbsp;**Airflow** | &nbsp;&nbsp;&nbsp;**m3/min** | **cfm** |
| &nbsp;&nbsp;Personnel Airflow | 372 | 13137 | &nbsp;&nbsp;Required airflow | 2632 | 92954 |
| &nbsp;&nbsp;Blast Clearing (Explosives) | 1917 | 67692 | &nbsp;&nbsp;Air intake | 760 | 26823 |
| &nbsp;&nbsp;Subtotal | 2289 | 80829 | &nbsp;&nbsp;Air outlet | 766 | 27036 |
| &nbsp;&nbsp;Leakage | 343 | 12124 | &nbsp;&nbsp;Coverage (%) | 29% | 29% |
| &nbsp;&nbsp;Required Airflow | 2632 | 92954 | &nbsp;&nbsp;Difference (cfm) | -66131 | -66131 |

---

Source: Santacruz (2023)

"Auxiliary fans" are used for ventilation of the drift headings using fans of 30 HP.

16.5.1.2 Ventilation
 System – Hundimiento Zone

This system has two main intakes from the surface via the primary ramp and a cutout at level 0 that links to a shaft up to level -195.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 16-12

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**Figure 16-7: Ventilation Scheme – Hundimiento Zone**

![](ex99-30_116.jpg)

Source: Santacruz (2023)

The fresh air is conducted through auxiliary fans and ventilation tubing to the active headings and the exhausted through vertical ventilation raises in addition to main Alimak raises at the southern and northern ends of the area. The flow requirement is greater compared to the Central Zone since it is almost entirely mechanized with diesel equipment.

The flow requirement and balance are shown in Table 16-4.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 16-13

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**Table 16-4: Balance of Air Flows – Hundimiento Zone**

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| | | | **Airflow Balance** | **Airflow Balance** | **Airflow Balance** |
| &nbsp;&nbsp;**Requirements Distribution** | **m3/min** | **cfm** | &nbsp;&nbsp;**Airflow** | &nbsp;&nbsp;&nbsp;**m3/min** | **cfm** |
| &nbsp;&nbsp;Workers Airflow | 300 | 10595 | &nbsp;&nbsp;Required airflow | 2487 | 87818 |
| &nbsp;&nbsp;Equipment | 1862 | 65769 | &nbsp;&nbsp;Air intake | 1575 | 55626 |
| &nbsp;&nbsp;Subtotal | 2162 | 76363 | &nbsp;&nbsp;Air outlet | 12612 | 52109 |
| &nbsp;&nbsp;Leakage | 324 | 11454 | &nbsp;&nbsp;Coverage (%) | 63% | 63% |
| &nbsp;&nbsp;Required Airflow | 2487 | 87818 | &nbsp;&nbsp;Difference (cfm) | -32192 | -32192 |

---

Source: Santacruz (2023)

16.5.2 Dewatering

16.5.2.1 Pumping
 System – Central Zone

The pumping system in this area consists of 3 main pumping stations that are located at levels: -337, -240 and -150, built near the main shaft (Wellington) so that water can be pumped to the surface. The water from the working faces is pumped or transported by gravity through ditches in the drifts to the sumps of the pumping stations.

The flow rate is not significant, recording an average surface flow rate of approximately 25 liters/second.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 16-14

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**Figure 16-8: Pumping Scheme – Central Zone**

![](ex99-30_117.jpg)

Source: Santacruz (2023)

16.5.2.2 Pumping
 System – Hundimiento Zone

The pumping system has 2 pumping stations at level -165 and -105 located on the Main Ramp, in addition there are auxiliary pumping sumps at levels: -195, -210, -225 and -240 associated with the ramps to pump water from the work headings.

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**Figure 16-9: Pumping Scheme – Hundimiento Zone**

![](ex99-30_118.jpg)

Source: Santacruz (2023)

The water is pumped from the work headings to the auxiliary sumps and subsequently via piping in the ramp to the central pumping station at level -105 from where the water is pumped to the surface.

The pumped flow varies between 20 and 30 liters/second, but due to the distances in depth, it is planned to build a main pumping station at level -240 to optimize the current pumping system with capacity for increased flow at depth.

16.5.3 Unit
 Operations

16.5.3.1 Stoping
 – Sublevel Stoping

Drilling is done using a Raptor 44 longhole drill, which is capable of radial drilling at angles from 0° to 360°.

● Burden = 1.0 m and spacing = 1.0 m;

● Longitudinal angle of 80°;

● Hole diameter of 56 mm;

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● Drill steel 1.20 m coupled; and

● Casing of the drilled holes with PVC.

Blasting: is carried out using a "V" relief sequence using long period delays. This sequence allows control of the hanging and footwalls, avoiding fracturing and instability.

Cleaning and extraction: the broken mineral is cleaned from the stopes (LOWER GALLERY) using a remote controlled Scooptram operated at a relevant safety distance where there is a shelter with a solid structure for the operator (bunker). Haulage is carried out using DUX dump trucks which transport the mineral to the shaft for hoisting (Antequera Shaft).

Filling: not until the cleaning stage is completed, are the voids filled with waste rock delivered via the upper sublevel (1<sup>st</sup> SUBN LEVEL) to generate a solid floor in the first SUBN LEVEL.

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**Figure 16-10: Remote Mucking Platform and Placement**

![](ex99-30_119.jpg)

Source: Santacruz (2023)

16.5.3.2 Stoping
 – Shrinkage

Preparation of short raises: 4 raises are driven with a section of 1.20 x 1.20 m and a length of 3.0 m in which chutes are assembled for stope extraction. Additionally, an access raise is driven at the edge of the stoping block.

The first cut is driven from the access drift intercepting all draw chutes in order to begin stoping. Stoping lifts of 1.80 m high and between 0.8 to 1.0 m wide depending on the width of the vein.

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After each blast, enough mineral is pulled through the chutes, to provide a workspace for the next lift. This cycle is repeated until the completion of the stope, approximately 10 to 12 lifts depending on the size of the stoping block. The final step would be to empty the mineral from the stope. The exploitation method cycle lasts between 4 to 6 weeks.

16.5.3.3 Extraction
 and Transport System

<u>Extraction and Transportation System – Central Zone</u>

Central Zone mineral is transported from the stopes via rail with Goodman type battery locomotives on levels -330, -285, -240, -195, -150, -105 and -60 to dumps on each level at the Nueva Shaft. Ore is hoisted to the San Cayetano level (zero level) in a 2.5 t skip.

At the San Cayetano Level, mineral is loaded into Granby style cars and hauled to the main dump for stockpiling prior to feeding to the process plant.

**Figure 16-11: Extraction System Diagram**

![](ex99-30_120.jpg)

Source: Santacruz (2023)

Conventional Development - Currently, the Central Zone uses conventional drifting and stoping system, meaning that jackleg drills are used for horizontal drifting which is mucked using Eimco 12B pneumatic overshot rail shovels. The extraction of the Shrinkage stopes is carried out by loading U35 rail cars directly from the stope chutes which are transported by locomotives to their respective level dump pockets at the shaft.

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<u>Extraction and Transportation System – Hundimiento Zone</u>

The extraction system of this area can be seen schematically in Figure 16-11, it has an extraction shaft to level 0 from level -195, with a main dump at level -173 and its respective skip loader at level -180. The skip capacity is 2 t.

The preparation and exploitation system are a combination between mechanized and conventional, with some drifting still being done with jacklegs, however, the extraction is completely mechanized through the use of scooptram to clean the fronts and mineralized material is subsequently transported by Dux-DT12 dump trucks to the main grate at level -173.

All production is transported vertically to Level 0 where it is deposited in the main extraction bins, from here the mineral is transported horizontally by conventional Type F12 dump truck to the main surface dump and stockpile.

16.6 Mine
 Equipment

16.6.1 Equipment
 List

Separate fleets of equipment are employed for each Central and Hundimiento Zones:

Development drilling for Mine infrastructure (primary development): ramps, counter galleries, cuts, entrances, loading stations, shelters, collection chambers, pumping sumps, etc. and everything related to waste rock infrastructure. The same fleet is also used for secondary development including main sublevels and cutouts:

● To carry out these tasks in the mechanized Hundimiento zone, electrohydraulic single boom drill jumbos are used, such as the Muki FF predominantly used as well as Jackleg drills depending on the section of the heading; and

● In the Central zone, conventional Jackleg Seco 250 type drills are used.

For installation of support:

● In Hundimiento, Muki FF electrohydraulic single boom jumbos or Jackleg Seco 250 conventional drilling rigs are used; and

● Central zone uses jackleg drills exclusively for support with the help of hydraulic jacks for installing mesh.

Mucking and stockpiling:

● In Hundimiento, this activity is carried out in all headings and muckbays using scooptrams with differing capacities depending on the section of the heading; and

● Central zone us several captive small capacity Scoops, but the rail drifts are driven mostly by the use of Eimco 12B pneumatic shovels.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 16-20

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Extraction and transportation:

● Haulage is by diesel low profile trucks in Hundimiento; and

● Central zone uses battery rail locomotives.

There are two Resemin Muki FF rigs with a power of 75 HP with capacities of between 2.4 and 3.0 m, and they are generally used for primary development and occasionally in secondary developments (box and vein developments) in level and sublevel development with dimensions 3.0 m x 3.0 m. Additionally, conventional Jackleg Seco 250 type drilling machines are used in the Central Zone for the execution of stope or raise developments, totalling about 10 to 15 active headings.

**Table 16-5: Drifting Equipment**

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| <br> **Item** | &nbsp;&nbsp;<br> **Category** | <br> **Mine/Zone** | &nbsp;&nbsp;<br> **Equipment Code** | <br> **Model** | <br> **Brand** | &nbsp;&nbsp;<br> **Capacity / Range** | <br> **HP** | &nbsp;&nbsp;<br> **Availability (%)** | &nbsp;&nbsp;<br> **Utilization (%)** |
| 1 | &nbsp;&nbsp;&nbsp;&nbsp;<br> Jumbo Drills | Hundimiento | MK-01 | MUKI FF | Resermin | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.0 M | 75 | 85 | 20 |
| 2 | &nbsp;&nbsp;&nbsp;&nbsp;<br> Jumbo Drills | Hundimiento | MK-03 | MUKI FF | Resermin | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.0 M | 75 | 85 | 20 |

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Source: Santacruz (2023)

Two Raptor Long hole drills are used for "Sub Level Stoping" in Hundimiento. The monthly drilling production is approximately 1,200 m per month.

**Table 16-6: Production Drilling**

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| <br> **Item** | <br> **Category** | <br> **Mine/Zone** | &nbsp;&nbsp;**Equipment Code** | &nbsp;&nbsp;<br> **Model** | <br> **Brand** | &nbsp;&nbsp;**Capacity / Range** | <br> **HP** | &nbsp;&nbsp;**Availability (%)** | &nbsp;&nbsp;**Utilization (%)** |
| <br> 1 | <br> Longhole Drills | <br> Hundimiento | <br> RP-05 | &nbsp;&nbsp;Raptor Mini DH | <br> Resermin | <br> 15 M | <br> 100 | <br> 85 | <br> 20 |
| 2 | <br> Longhole Drills | Hundimiento | RP-06 | &nbsp;&nbsp;Raptor 44 | Resermin | 15 M | 100 | 85 | 20 |

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Source: Santacruz (2023)

In the Hundimiento Zone there are 5 scooptrams (three Epiroc, one Overprime and one HES) and an Eimco 12B Pneumatic Shovel. In the Central Zone there is a Jarvis Clark 1 yd<sup>3</sup> and a Sandvik 1.5 yd<sup>3</sup> scooptram that are captive in specific areas, However the bulk of the mucking is completed with Eimco 12B Type pneumatic shovels.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 16-21

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**Table 16-7: Scooptrams and Pneumatic Shovels**

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| <br> **Item** | <br> **Category** | <br> **Mine/Zone** | &nbsp;&nbsp;&nbsp;**Equipment Code** | <br> **Model** | <br> **Brand** | &nbsp;&nbsp;&nbsp;&nbsp;**Capacity/ Range** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br> **HP** | &nbsp;&nbsp;&nbsp;**Availability (%)** | &nbsp;&nbsp;&nbsp;&nbsp;**Utilization (%)** |
| 1 | <br>Scooptrams | Hundimiento | ST-12 | ST2G | EPIROC | 2 yd3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;117 | 85 | 60 |
| 2 | <br>Scooptrams | Hundimiento | ST-17 | ST2G | EPIROC | 2 yd3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;120 | 85 | 60 |
| 3 | <br>Scooptrams | Hundimiento | ST-20 | ST2G | EPIROC | 2 yd3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;120 | 85 | 60 |
| 4 | <br>Scooptrams | Hundimiento | ST-18 | &nbsp;&nbsp;XLH05D-010- 2018 | OVERPRIME | 1 yd3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99 | 85 | 30 |
| 5 | <br>Scooptrams | Hundimiento | ST-21 | HS10E | HES | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.7 yd3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40 | 85 | 30 |
| 6 | <br>Scooptrams | &nbsp;&nbsp;Hundimiento - 140 | PN-50 | 12B | EIMCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.17 m3 |  | 85 | 60 |
| 7 | <br>Scooptrams | Central | ST-06 | JS-100E | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;JARVIS CLARK | 1 yd3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40 | 85 | 30 |
| 8 | <br>Scooptrams | Central | ST-10 | LH202E | SANDVIK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 yd3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60 | 85 | 30 |
| 9 | <br>Scooptrams | Central -60 | PN-9 | 12B | EIMCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.17 m3 |  | 85 | 60 |
| 10 | <br>Scooptrams | Central -85 | PN-117 | 12B | EIMCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.17 m3 |  | 85 | 60 |
| 11 | <br>Scooptrams | Central -85 | PN-12 | 12B | EIMCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.17 m3 |  | 85 | 60 |
| 12 | <br>Scooptrams | Central -85 | PN-36 | 12B | EIMCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.17 m3 |  | 85 | 60 |
| 13 | <br>Scooptrams | Central -105 | PN-18 | 12B | EIMCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.17 m3 |  | 85 | 60 |
| 14 | <br>Scooptrams | Central -105 | PN-56 | 12B | EIMCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.17 m3 |  | 85 | 60 |
| 15 | <br>Scooptrams | Central -105 | PN-5 | 12B | EIMCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.17 m3 |  | 85 | 60 |
| 16 | <br>Scooptrams | Central -130 | PN-38 | 12B | EIMCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.17 m3 |  | 85 | 60 |
| 17 | <br>Scooptrams | Central -150 | PN-37 | 12B | EIMCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.17 m3 |  | 85 | 60 |
| 18 | <br>Scooptrams | Central -175 | PN-3 | 12B | EIMCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.17 m3 |  | 85 | 60 |
| 19 | <br>Scooptrams | Central -195 | PN-8 | 12B | EIMCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.17 m3 |  | 85 | 60 |
| 20 | <br>Scooptrams | Central -195 | PN-57 | 12B | EIMCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.17 m3 |  | 85 | 60 |
| 21 | <br>Scooptrams | Central -195 | PN-10 | 12B | EIMCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.17 m3 |  | 85 | 60 |

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PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 16-22

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| <br> **Item** | <br> **Category** | <br> **Mine/Zone** | &nbsp;&nbsp;&nbsp;**Equipment Code** | <br> **Brand** | &nbsp;&nbsp;&nbsp;&nbsp;**Capacity/ Range** | <br> **HP** | &nbsp;&nbsp;&nbsp;**Availability (%)** | &nbsp;&nbsp;&nbsp;&nbsp;**Utilization (%)** |
| 22 |  | Central -240 | PN-30 12B | EIMCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.17 m3 |  | 85 | 60 |
| 23 |  | Central -240 | PN-19A 12B | EIMCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.17 m3 |  | 85 | 60 |
| 24 |  | Central -285 | PN-15 12B | EIMCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.17 m3 |  | 85 | 60 |

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Source: Santacruz (2023)

Depending on the type of work and the size of opening, the appropriate equipment is used for cleaning, stockpiling and loading the dump trucks. For extraction in the Hundimiento Zone, 3 Dux DT12 dump trucks are used to transport the mineral from the mineral loading points to the main shaft extraction dump.

In the Central Zone, the mineral is transported through the use of locomotives; currently 17 locomotives are used to cover the different production levels (2 Trident, 5 Titan BNX, 3 VEB, 4 Bessinger and 3 Goodman).

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 16-23

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**Table 16-8: Dump Trucks, Locomotives**

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| <br> **Item** | <br> **Category** | <br> **Mine/Zone** | &nbsp;&nbsp;&nbsp;**Equipment Code** | <br> **Model** | <br> **Brand** | &nbsp;&nbsp;&nbsp;&nbsp;**Capacity / Range** | <br> **HP** | &nbsp;&nbsp;&nbsp;**Availability (%)** | &nbsp;&nbsp;&nbsp;&nbsp;**Utilization (%)** |
| 1 | <br>Trucks | Hundimiento | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MT-02 | DT12 | DUX | 8 t | 150 | 85 | 60 |
| 2 | <br>Trucks | Hundimiento | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MT-03 | DT12 | DUX | 8 t | 150 | 85 | 60 |
| 3 | <br>Trucks | Hundimiento | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MT-05 | DT12 | DUX | 8 t | 150 | 85 | 60 |
| 4 | <br>Trucks | Central 0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LB – 50 |  | Trident | 6 t |  | 85 | 60 |
| 5 | <br>Trucks | Central 0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LB – 51 |  | Trident | 6 t |  | 85 | 60 |
| 6 | <br>Trucks | Central –105 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LB – 41 |  | Titan BNX | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 t |  | 85 | 60 |
| 7 | <br>Trucks | Central –195 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LB – 42 |  | Titan BNX | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 t |  | 85 | 60 |
| 8 | <br>Trucks | Central –150 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LB – 32 |  | Titan BNX | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 t |  | 85 | 60 |
| 9 | <br>Trucks | Central –150 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LB - 45 |  | Titan BNX | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 t |  | 85 | 60 |
| 10 | <br>Trucks | Central –240 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LB – 03 |  | Titan BNX | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 t |  | 85 | 60 |
| 11 | <br>Trucks | Central –105 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LB – 62 |  | VEB | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 t |  | 85 | 60 |
| 12 | <br>Trucks | Central –150 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LB – 63 |  | VEB | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 t |  | 85 | 60 |
| 13 | <br>Trucks | Central –150 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LB – 24 |  | VEB | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 t |  | 85 | 60 |
| 14 | <br>Trucks | Central –105 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LB – 08 |  | Bessinger | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 t |  | 85 | 60 |
| 15 | <br>Trucks | Central –180 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LB – 10 |  | Bessinger | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 t |  | 85 | 60 |
| 16 | <br>Trucks | Central –240 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LB – 01 |  | Bessinger | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 t |  | 85 | 60 |
| 17 | <br>Trucks | Central –285 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LB – 16 |  | Bessinger | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 t |  | 85 | 60 |
| 18 | <br>Trucks | Central –180 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LB – 28 |  | Goodman | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 t |  | 85 | 60 |
| 19 | <br>Trucks | Central –195 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LB – 22 |  | Goodman | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 t |  | 85 | 60 |
| 20 | <br>Trucks | Central –60 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LB – 44 |  | Goodman | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 t |  | 85 | 60 |

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Source: Santacruz (2023)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 16-24

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There is dedicated equipment for the transportation of personnel (Paus Minka IBA) and the maintenance of haulage ways and access roads.

**Table 16-9: Inventory of Service and Transportation Equipment**

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Item** | &nbsp;&nbsp;&nbsp;&nbsp;**Category** | **Mine/Zone** | &nbsp;&nbsp;&nbsp;**Equipment Code** | **Model** | **Brand** | &nbsp;&nbsp;&nbsp;&nbsp;**Capacity / Range** | **HP** | &nbsp;&nbsp;&nbsp;**Availability (%)** | &nbsp;&nbsp;&nbsp;&nbsp;**Utilization (%)** |
| 1 | &nbsp;&nbsp;&nbsp;&nbsp;<br> Auxiliary Equipment | Hundimiento | TR-04 | D4G | Caterpillar | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 m3 | 45 | 85 | 30 |
| 2 | &nbsp;&nbsp;&nbsp;&nbsp;<br> Auxiliary Equipment | Hundimiento | UT-01 | SURI 22 | Resermin | 2 t | 96 | 85 | 20 |
| 3 | &nbsp;&nbsp;&nbsp;&nbsp;<br> Auxiliary Equipment | Hundimiento | CM-10 | MINKA 18A | Paus | 18<br> Passengers | 125 | 85 | 60 |

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Source: Santacruz (2023)

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 16-25

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16.6.2 Availability
 and Utilization Factors

As can be seen in the above tables, the availability and utilization factors are not actually tracked, calculated, or reported. An availability of 85% has been assumed for all units of every type. Utilization is also uniformly applied by unit, with 20% assumed for all drilling equipment, 60% for all trucks and large scooptrams, and 30% for all small (< 2 yd<sup>3</sup>) scooptrams.

This information should be tracked properly and used as a management tool to determine which units should be rebuilt or replaced and to avoid or minimize usage of the units with the highest operating costs.

16.7 Mine
 Personnel

Total Manpower at the mine site including Mine, Plant, Maintenance, Services, and General and administrative in 2022 totaled 618 people consisting of 358 direct employees and 260 contractors. In the breakout table below, the contractors fill mostly the services roles.

**Table 16-10: List of Mine Personnel**

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|:---|:---|
| &nbsp;&nbsp;**Mine** | **243** |
| &nbsp;&nbsp;Plant | &nbsp;&nbsp;44 |
| &nbsp;&nbsp;Engineering and Maintenance | &nbsp;&nbsp;38 |
| &nbsp;&nbsp;General & Administrative | &nbsp;&nbsp;33 |
| &nbsp;&nbsp;Contractors | &nbsp;&nbsp;260 |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**618** |

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Source: Santacruz (2023)

16.8 Production
 Schedule

Total mine production for 2022 is shown in Table 16-11.

SANTACRUZ SILVER MINING LTD. \| PORCO TECHNICAL REPORT PAGE 16-26

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**Table 16-11: Total Mine Production in 2022**

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|:---|:---|
| **Total** | **Total** |
| &nbsp;&nbsp;Production (tonnes) | &nbsp;&nbsp;181153 |
| &nbsp;&nbsp;Waste rock (tonnes) | &nbsp;&nbsp;45710 |
| &nbsp;&nbsp;Zinc (%) | &nbsp;&nbsp;7.10 |
| &nbsp;&nbsp;Lead (%) | &nbsp;&nbsp;0.62 |
| &nbsp;&nbsp;Silver (g/t) | &nbsp;&nbsp;118 |
| &nbsp;&nbsp;Primary Devt Horizontal (m) | &nbsp;&nbsp;1621 |
| &nbsp;&nbsp;Primary Devt Vertical (m) | &nbsp;&nbsp;335 |
| &nbsp;&nbsp;Secondary Devt Horizontal (m) | &nbsp;&nbsp;4796 |
| &nbsp;&nbsp;Secondary Devt Vertical (m) | &nbsp;&nbsp;1643 |

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Source: Santacruz (2023)

Mining in the upper areas, and adjacent to active mining operations, is carried out by "Cooperativas". These groups are independent miners with which Illapa has informal agreements allowing them to mine certain areas of the deposit. Ore mined under this agreement is processed at the Porco plant on a toll basis. In 2013, it was agreed that Contrato de Asociación Sociedad Minera Illapa S.A. would exploit the levels lower than elevations 4,213 and 4,225, in the central zone. However, members of the Cooperatives regularly violate the agreement and access active mining areas below these agreed boundaries, which is both a safety and production issue. As well, environmental licenses and controls are not in place for Cooperatives and little or nothing is done to regulate the environment in their work areas.

The production from cooperative mined areas is separate from that planned and exploited by Illapa. The Cooperative system is one method to reduce illegal activity and have some positive influence on operating standards and control over areas being mined, however the impacts of blocked mine access, unauthorized entry, and activities in active mining areas remain significant.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 16-27

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17 PROCESS DESCRIPTION / RECOVERY METHODS

17.1 Introduction

The Porco Mill, which has two sources of feed (company feed and toll feed), has been in production since 1992. The mill processes the company and toll feeds separately.

The mill uses a crushing, grinding, and flotation flowsheet to recover a lead concentrate and a zinc concentrate. Both concentrates are sold to Glencore via overseas shipping through Antafagasta, Chile.

The mill generally separates company and toll feed into different days, but there are a few days where the feed is processed on the same day, with a shutdown in between to separate them.

The feed grades for the company feed are measured as is typical for a processing plant, by taking samples from the process at the cyclone overflow and performing a reconciliation each month based on concentrate produced and tailings samples. The toll ore has extra sampling as part of the contract with the local minors. The ore is received by San Lucas, often in 1-2 t lots, where it is weighed and sampled. The ore is combined on a toll feed stockpile to be fed to the mill. The toll feed follows the same sampling and reconciliation procedure as the company ore.

The plant flowsheet for the Porco mill, which can be seen in Figure 17-1, is a typical differential flotation circuit to produce lead and zinc concentrates.

The ore is crushed in preparation for feed to the grinding circuit. The grinding circuit utilizes a SAG/Ball mill combination to

The flotation circuit recovers both lead and zinc to a bulk concentrate. The bulk concentrate then undergoes cleaner flotation to remove a lead concentrate. The tailings from the lead cleaning circuit becomes the zinc concentrate. Both of the concentrates are filtered for shipping to the smelter. The lead concentrate is bagged for shipping, while the zinc concentrate is shipped bulk in trucks.

SANTACRUZ SILVER MINING LTD. \| PORCO TECHNICAL REPORT PAGE 17-1

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**Figure 17-1: Porco Mill Flowsheet**

![](ex99-30_111.jpg)

Source: Glencore (2021)

SANTACRUZ SILVER MINING LTD. \| PORCO TECHNICAL REPORT PAGE 17-2

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The concentrates produced at the Porco Mine are sold to the Glencore via overseas shipping through Antafagasta, Chile. The zinc concentrate is shipped as a bulk product. The lead concentrate, due to local laws, is bagged prior to shipping.

17.2 Process
 Plant Description

The processing plant is designed to process 1,200 tonnes/day of company feed or 900 t/d of toll feed. The plant produces two concentrates; a lead concentrate and zinc concentrate, both of which are high in silver.

17.2.1 Crushing

The plant feed is brought to the surface via haul truck and dumped into the crushing feed bin. The mineralized material is fed to a 25" x 40" Telesmith jaw crusher via vibrating grizzly feeder. The jaw crusher discharge is placed on the mill feed stockpile.

17.2.2 Grinding

The coarse ore stockpile is reclaimed by underground vibratory feeder to a 14' dia. x 7' EGL SAG mill. The SAG mill has a trommel screen to return oversize material to the SAG mill. The fine particles are pumped to a cyclone pack for size classification. The undersize reports to a 11' dia. X 15' EGL ball mill. The cyclones used for classification are CAVEX 500 mm cyclones. The cyclone overflow targets a product size, P80 of 100 µm for the flotation circuit.

The SAG and ball mill can be seen in Figure 17-2.

SANTACRUZ SILVER MINING LTD. \| PORCO TECHNICAL REPORT PAGE 17-3

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**Figure 17-2: Porco Mill Grinding Circuit**

![](ex99-30_112.jpg)

17.2.3 Flotation

The flotation circuit at the Porco mill concentrates the lead, zinc, and silver into a bulk concentrate which is then separated into separate lead and zinc concentrates by differential flotation. The reagents utilized at the Porco mill are generally the same for the toll and company ores.

Figure 17-3 shows the Porco bulk rougher circuit.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 17-4

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**Figure 17-3: Porco Mill Rougher Flotation Cells**

![](ex99-30_137.jpg)

17.2.3.1 Bulk
 Flotation Circuit

The grinding circuit product is directed to three conditioning tanks: 14' dia. by 8' tall, 11' dia. x 8' tall, and 5' dia. X 6.5' tall. In the 3 conditioning tanks frother, Aerophine 3418A, Aerofloat 242, copper sulphate, and Sodium Isopropyl Xanthate (Z-11) are added. The feed continues to the rougher flotation circuit which consists of three 500 cubic foot Wemco flotation cells followed by six 500 cubic foot Denver flotation cells. The rougher circuit tailings are then scavenged in a bank of seven 180 cubic foot Denver flotation cells and a single 5 m<sup>3</sup> Jameson flotation cell.

The scavenger flotation cell tailings reports to the final tailings pumpbox. The scavenger circuit concentrate is returned to the bulk circuit feed with the option to be reground in the regrind circuit to improve liberation.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 17-5

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The regrind circuit consists of a 6' diameter x 6' EGL Denver ball mill in closed circuit with three Krebs D-10 cyclones.

The bulk rougher concentrate is cleaned in a single 2.11 m diameter x 8 m tall flotation column. The tailings from the flotation column report to the second conditioning tank on the rougher feed. The concentrate from the flotation column reports to the lead/zinc differential flotation circuit.

17.2.3.2 Differential
 Flotation Circuit

The differential flotation circuit consists of a 5' diameter x 6.6' tall conditioning tank, four 180 cubic foot Denver flotation cells and two 0.91 m diameter x 8 m tall flotation columns. The rougher concentrate is pumped to the conditioning tank, where cyanide and zinc sulphate are added to depress the zinc. The conditioning tank discharge reports to a bank of four 180 cubic foot first cleaner Denver mechanical flotation cells. The 1<sup>st</sup> cleaner tailings report to the zinc concentrate thickener. The concentrate from the first two 1<sup>st</sup> cleaner cells report to the 2<sup>nd</sup> cleaner flotation column, a 0.91 m dia. X 8m tall flotation column. The concentrate from the second two 1<sup>st</sup> cleaner flotation cells is returned to the conditioning tank.

The 2<sup>nd</sup> cleaner flotation column concentrate reports to the 0.91 m dia. x 8 m tall 3<sup>rd</sup> cleaner flotation column, while the 2<sup>nd</sup> cleaner flotation column tailings is returned to the cleaner circuit conditioning tank.

The 3<sup>rd</sup> cleaner flotation column is the final stage in the differential flotation circuit. The concentrate from this column reports to the final lead concentrate, while the tailings reports back to the feed of the 2<sup>nd</sup> cleaner column.

17.2.4 Concentrate
 Dewatering

The concentrate dewatering circuit consists of two circuits, the lead concentrate dewatering circuit and the zinc concentrate dewatering circuit.

The concentrates produced at the Porco Mine are sold to Glencore via overseas shipping through Antafagasta, Chile. The zinc concentrate is shipped as a bulk product. The lead concentrate, due to local laws, is bagged prior to shipping. The products are transported by truck to the train loading facility that is approximately 10 km from the mine.

17.2.4.1 Lead
 Concentrate Dewatering

The lead dewatering circuit consists of a 10' diameter x 8' tall lead filter stock tank and a 6' diameter disc filter. The disk filter has 2 discs. Filtrate water from the disc filter reports back to the process water tank.

Filtered lead concentrate is bagged for transport to the smelter, as is required by Bolivian law.

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 17-6

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17.2.4.2 Zinc
 Concentrate Dewatering

The zinc concentrate reports to a 35' diameter thickener. The thickener underflow is pumped to a 12' diameter x 12' tall zinc filter feed tank stock tank. The zinc concentrate is filtered in a filtered in either a 1.2 m x 2.4 m x 2.4 m pressure filter or an 8 ft diameter x 5 disc filter.

17.2.5 Tailings

There are a total of 9 tailings dams at the Porco mine. Eight of the tailings dams have been decommissioned. The operational tailings dam received an increase in capacity in January. The current tailings pond capacity is designed to allow production to be stored until the end of 2023. All of the tailings dams are inspected regularly and maintained to the standards set out by the Canadian Dam Association guidelines. Both dams are under the supervision of engineers from AMEC (now Wood Engineering) and recently an external audit was conducted by Knight Piésold Consulting.

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18 PROJECT INFRASTRUCTURE AND SERVICES

The infrastructure for the Porco operation is sufficient to meet the needs of the mine and processing plant.

18.1 Industrial
 Complex

The industrial complex for the Porco operation comprises both mine portals, the processing plant, and all services to support mining and processing, as detailed on Figure 18-1. This includes:

● Various technical, administrative offices, and mine operations office;

● Maintenance facilities for all surface and underground equipment;

● Surface stockpiles;

● Warehousing facilities for mine and processing supplies, including reagents;

● A dining hall for technical and administrative staff;

● A first aid station;

● Fuel storage and a refilling station;

● A one million liter water storage tank;

● An explosives magazine;

● Water treatment; and

● Mine services, such as a mine dry, power, water supply, and compressed air.

The industrial site is gated and has a security force.

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**Figure 18-1: Industrial Complex of the Porco Mining Operation**

Source: Santacruz (2023)

18.2 Yancaviri
 Camp, Porco, and Agua de Castillo Townsites

The Yancaviri camp area is located approximately 5 km from the industrial area of the Porco Mine operation and approximately 2 km from the town of Agua de Castilla (Figure 18-2).

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The camp provides housing for technical staff of the operation and visitors. It is equipped with a cookhouse and dining hall, gymnasium and basketball court (Figure 18-3).

The camp site also houses the concentrate storage facility and the railway loadout for concentrate shipment.

The Yancaviri is also gated with a security force.

**Figure 18-2: Yancaviri Camp Site, Porco, and Agua de Castilla Townsites.**

Source: Santacruz (2023)

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**Figure 18-3: Details of Yancaviri Camp Facilities**

Source: Santacruz (2023)

18.3 Power

Porco Operations uses power for mining and processing operations. Power is supplied by the National Grid. Approximately 21 million kWh of power was consumed in 2022, representing an average draw of approximately 2.6 MW. This equates to 126 kWh per tonne mined or 66 kWh per tonne processed (including toll milling).

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19 MARKET STUDIES AND CONTRACTS

19.1 Contracts

19.1.1 Illapa
 JV

Porco operates under the management of Sinchi Wayra S.A. (formerly COMSUR S.A.), under a joint venture agreement with the Bolivian government (COMIBOL) named Illapa S.A. Sinchi Wayra S.A. and (COMIBOL) entered this Joint Venture Agreement (the Illapa JV) on December 4, 2014, by virtue of Public Deed N° 1356/2014. The duration of the Illapa JV is 15 years, with the possibility of extending the term for the same duration. Under the Illapa JV, ownership is 55% COMIBOL and 45% Illapa. In the event of any disagreement, the Illapa JV has an arbitration clause with seat in La Paz, Bolivia, under UNCITRAL Rules.

On October 11, 2021, Santacruz entered into the Definitive Agreement with Glencore whereby Santacruz agreed to acquire a portfolio of Bolivian silver assets from Glencore, including the following: (a) a 45% interest in the Bolivar Mine and the Porco Mine, held through an unincorporated joint venture between Glencore's wholly-owned subsidiary Contrato de Asociación Sociedad Minera Illapa S.A. (Illapa) and COMIBOL, a Bolivian state-owned entity; (b) a 100% interest in the Sinchi Wayra S.A. (Sinchi Wayra) business, which includes the producing Caballo Blanco mining complex; (c) the Soracaya exploration project; and (d) the San Lucas ore sourcing and trading business (the Assets).

On March 18, 2022, Santacruz completed the purchase of the Assets, including Glencore's interest in the Porco Mine.

On May 10, 2023, Santacruz and Glencore entered into a framework agreement to amend certain terms of the transaction documents pertaining to the acquisition of the Assets. On March 28, 2024, Santacruz and Glencore entered into the binding Term Sheet which amends the terms of certain deferred consideration and ancillary documents pertaining to the acquisition of the Assets.

19.1.2 Glencore
 Off-Take Agreement

Off-take Agreements with Glencore International are in place for the Porco Mine production: Contract No. 180-03-10309-P and Contract No. 062-03-10276-P, including all its addendums and amendments. These Off-Take Agreements are in effect through the life of the mine.

19.2 Market
 Studies

No market studies have been completed for the Project at this time. All commodities produced by the mine are regularly sold on vast international markets and the operation has an arrangement with a smelter to ensure continued product sales.

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19.3 Smelting

The mine produces two saleable concentrates: lead, and zinc. Both are sent to Antafagasta, Chile for shipment overseas. Both are sold to Glencore. These include typical payment terms for all payable metals (Pb, Zn, Ag) and deductions for deleterious elements which potentially include Sb and As in the lead concentrate; and SiO2 and Fe in the zinc concentrate.

The approximate percentage net revenue by concentrate is ranked as follows:

● Zn Concentrate: 59%

● Pb Concentrate: 41%

The approximate percentage revenue by metal is ranked as follows:

● Ag: 58%

● Zn: 39%

● Pb: 3%

19.4 Metal
 Prices

Historical silver, lead, and zinc prices are shown in Figure 19-1 through Figure 19-3.

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**Figure 19-1: Historical Silver Price**

![](ex99-30_141.jpg)

Source: London Metals Exchange (2023)

**Figure 19-2: Historical Lead Price**

![](ex99-30_142.jpg)

Source: London Metals Exchange (2023)

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**Figure 19-3: Historical Zinc Price**

![](ex99-30_143.jpg)

Source: London Metal Exchange (2023

The zinc, silver and lead prices used in this Technical Report were selected based on the average of three years past and forward projections by CIBC and Consensus Economics, as shown in Table 19-1. These parameters are in line with other recently released comparable Technical Reports. These prices were used as the basis for the resource estimate, reserve estimate, and economic model.

**Table 19-1: Metal Price and Exchange Rate**

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| &nbsp;&nbsp;<br> **Metal** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Three Year Average** | <br> **CIBC (Long Term)** | &nbsp;&nbsp;&nbsp;&nbsp;**Consensus Economics Forecast (Log Term)** | <br> **Assumed Value** |
| &nbsp;&nbsp;Silver | 23.39 | 22.96 | 20.48 | 21.00 |
| &nbsp;&nbsp;Zinc | 1.20 | 1.27 | 1.14 | 1.15 |
| &nbsp;&nbsp;Lead | 0.97 | 0.94 | 0.88 | 1.00 |

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It must be noted that metal prices are highly variable and are driven by complex market forces and are difficult to predict.

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Current (May 3, 2024) spot prices are as follows:

● Ag: $26.50/oz

● Zn: $1.32/lb

● Pb: $1.00/lb

The QPs do not consider the difference between metal current prices and those assumed in this study to be material with regard to the estimation of the mineral resources, reserves, or financial model.

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20 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACTS

20.1 Environmental
 Considerations

Responsible environmental management is a critical part of Santacruz's license to operate and our responsible, compliant operation of Bolivian assets has continued for the last 30 years. Control of potential environmental impacts that can affect Santacruz's performance and the interests of internal and external stakeholders is paramount. Santacruz' environmental management approach is divided into three major areas; Water Management, Tailings Management, and Climate Change. However, other environmental issues are addressed as needed outside of these major management areas such as Waste Management, Land Use, Environmental Closure, and Biodiversity.

Environmental Compliance with national laws and regulations is the basis of Santacruz's environmental management system and is governed by a framework of oversight by the relevant Environmental Authority. However, the company's environmental management system allows it to identify and assess all effects of its operations in order to establish controls and improvement targets guided by best environmental practices and its responsibility to the communities in which it operates. Its environmental commitments are reported to the authorities annually in an Environmental Monitoring Report, which summarizes environmental management of its operations under applicable laws and regulations.

Santacruz is part of the Environmental Working Table within the Bolivia Network of the United Nations Global Compact, where it supports initiatives for raising awareness and environmental care, while also sharing experience from the field.

Based on comparison to the Baseline Environmental Audit Studies (ALBAs), mining activities in Santacruz's operations have not had a significant impact on the area's biodiversity. However, Santacruz actively manage risks related to land use by analyzing impacts on water resources and agriculture, adhering to national regulatory requirements, and applying relevant best practices from the ICMM for environmental closure. In the context of continuous improvement, Santacruz carried out partial remediation and rehabilitation tasks in industrial areas in accordance with the Progressive Closure Plan, in compliance with the Environmental Regulation for Mining Activities (RAAM) of Law No. 1333. None of Santacruz's mining operations are in direct proximity to a sensitive biodiversity area, and no species listed on the IUCN Red List or national conservation lists are identified as threatened by Santacruz's activities. However, Reserva Mine in Caballo Blanco is located near a Municipal protected area.

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20.1.1 Climate
 Change

The impacts and costs of addressing climate change is driven by global commitments, such as the Paris Agreement in 2015, which was signed by 193 countries, including Bolivia. The Agreement proposes, through international action, the reduction of global emissions to prevent the increase of 2° C in the planet's temperature. In this regard, the Bolivian government, through Law No. 835 of 2016, committed to preserving the integrity of Mother Earth, and private industry is expected to join global initiatives on climate change. Climate change has been identified as a material topic due to its potential negative impacts in the medium and long term, particularly in terms of water use and the energy limitations that the mining sector must face. This has been evaluated in Santacruz's corporate risk matrix, and Santacruz is taking actions to address this risk. Santacruz recognize the importance of the required actions in response to Climate Change and strive to ensure mining operations with the least possible environmental impact. focus its efforts mainly on efficient water management and energy efficiency. The cost of energy is one of the largest components of Santacruz's operating expenditures. Ninety percent of the electricity consumed in Santacruz's operations is purchased from the national power grid which relies mostly on fossil fuels (73%). One of Santacruz's direct actions is the management of two power plants that supply electricity to Colquechaquita Mine (Caballo Blanco):

● Hydropower Plant - Renewable energy from Yocalla, which generates 870 CVA s a generation facility that converts the potential energy from falling water into electricity, with a generation capacity of 870 CV; and

● Aroifilla Thermoelectric Plant, which operates on natural gas and has a generation capacity of 200 KW.

Santacruz's operations consumed a total of 91,500 M Watt-hours from the national grid and Santacruz's own power plants, representing a 3% increase compared with the previous year's consumption against a 7% growth in production. 90% of the electricity consumed is purchased from the National Grid, while the remaining electricity is generated by Santacruz's Aroifilla thermoelectric power plant (5%) and Yocalla Renewable hydroelectric power plant (4%).

Electric energy and natural gas are measured via dedicated meters installed for this purpose. Gasoline and diesel fuel consumption is tracked through the records of outgoing supplies managed by warehouses, which are solely for the company's equipment and vehicles. Energy intensity can then be calculated to allow monitoring of overall energy efficiency. In 2022, Santacruz's energy intensity per tonne of concentrate was 2,544 MJ/t, a 10% reduction compared with the previous year, and 30.5% decrease since 2018. This reduction is attributed to more efficient production processes and increases in production that allow energy to be used more effectively.

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**Figure 20-1: Santacruz Bolivia Operations Energy Consumption**

![](ex99-30_144.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

Atmospheric Emissions are associated with the transportation of materials and personnel to and between the mines, resulting from dust and particulate matter generated by truck transport on unpaved roads. To prevent dust and particulate material dispersion in the air, Santacruz has implemented controls, such as frequent watering of gravel roads. In 2022, Santacruz continued to perform ambient air quality monitoring at specific points designated in Santacruz's environmental permits. These monitoring activities assess the levels of PM-10 and metallic contents in the air, and the results are well below the permissible limits. Santacruz also reports the emissions of SOx and NOx resulting from the combustion of natural gas in Santacruz's Aroifilla thermoelectric plant in Potosí. These emissions are also below the permissible limits established by law. The calculation of these emissions is based on measurements conducted by an independent certified environmental laboratory.

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20.2 Waste
 and Water Management

Waste management is an important part of Santacruz's Comprehensive Environmental Management, which includes a waste management plan to classify, handle, and store waste separately for proper disposal or treatment. Waste management complies with Environmental Law No. 1333, its Regulations on Solid Waste Management, and its supplementary regulations, focusing primarily on the sectoral requirements of the Environmental Regulation for Mining Activities for waste rock and tailings.

Waste management extends beyond Santacruz's production operations and includes administrative activities and healthcare facilities managed by Santacruz. Santacruz has begun initiatives for recycling and reuse of domestic waste at several of Santacruz's operations, including plastic recycling campaigns, paper reuse, and compost generation from food waste. Industrial wastes such as oils, greases, scrap, and tires, are sold to recognized recyclers. It ensures that these recyclers are regulated and certified by the environmental authorities to ensure compliant reuse and recycling.

Santacruz classifies waste based on its source of generation. Waste Management then addresses separation by kind of waste, collection, temporary storage and final disposal.

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**Figure 20-2: Waste Classification by Process Source**

![](ex99-30_121.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

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**Table 20-1: Total Waste Quantification and Treatment/Disposal**

![](ex99-30_122.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

Water management has been identified as the most critical environmental area. Water is a shared resource of high social, environmental, and economic value, which is also a critical component of Santacruz's mining and metallurgical activities. Mining operations are located in the Bolivian Highlands, in areas with low precipitation, high evapotranspiration, and threats of drought.

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According to data presented in the "Ecological Threat Register", which ranks countries and watersheds worldwide based on their exposure to water-related risks, Bolivia has a low country risk (10- 20%) of water vulnerability and is not considered a water-stressed country. However, in accordance with the "Aqueduct Water Risk Atlas" by the World Resources Institute, the highland areas where Santacruz operates are considered as Medium Risk (Bolívar) and High Risk (Caballo Blanco and Porco). According to these recognized international public tools, Santacruz deems the care and preservation of water critical aspects of Santacruz's management system and strives to ensure access to water for communities and operational needs.

During the mining production process, water comes into contact with heavy metals, so it must be treated before being use or discharge. Monitoring water quality and quantity and the use of water balance monitoring, Santacruz is able to comply with the criteria required by the Regulations on Water Pollution (RMCH) of Environmental Law No. 1333. Santacruz is also subject to periodic inspections by applicable environmental authorities and community representatives. Water balances for each operation are verified using flow meters and reservoir level bathymetry to ensure accurate and validated information for assessing, proposing, and identifying opportunities for improving water management.

Water Treatment - The underground mining activities produce an excess of water which must be pumped from the mine. This water may contain suspended solids and chemical contaminants (such as pyrite and heavy metals), which would require treatment for reuse of discharge. Water treatment includes the following steps:

**Figure 20-3: Water Treatment Process**

Source: Sustainability Report, Sinchi Wayra (2022)

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**Table 20-2: Santacruz Bolivia Water Volumes**

![](ex99-30_124.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

Operational consumption is used for drilling, mine services, irrigation, and process water sourced by reclaim from the Tailings Dam. The actual water consumption is the difference between "extracted" water and "discharged water", resulting in 1.9 Mm<sup>3</sup> consumed in 2022 for all mines.

Santacruz treats excess water to meet applicable required standards and discharge it to surface water at authorized points specified in Santacruz's environmental permits. The discharge parameters as set out in Water Pollution Regulations Law No. 1333, include pH, iron, zinc, lead, and suspended solids, which are typical in the water treated from the mine.

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**Figure 20-4: Santacruz Bolivia Water Balance**

![](ex99-30_125.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

20.2.1 Solid
 Waste - Porco

There are a total of 9 tailings dams at the Porco mine. Eight of the tailings dams have been decommissioned. All of the tailings facilities are inspected regularly and maintained to the standards set out by the Canadian Dam Association guidelines. Dams are under the supervision of engineers from AMEC (now Wood Engineering) and regular external audits are conducted by a third-party engineering firm.

The active Tailings Storage Facility (dam "D") began operations on March 3, 1998. Initially designed by AGRA Earth & Environmental Ltda. For the first two phases., and AMEC for the current active expansion. The facility meets current international standards. The impoundment is of downstream construction and the dam lined with 60 mil HDPE. A system of well and piezometers are in place to monitor the facility's performance. Construction of Phase VI begun in 2018 was completed in 2019 and included recommended work to reinforce areas of the foundation. Another expansion was completed in 2021, and construction of the next expansion is planned for Q3 2024.

Tailings are discharged along the inside face of the dam at 25-29% solids, forming a tailings beach for additional support, and keeping the water away from the dam. The water reclaim system consists of a barge mounted pump system to form a closed loop with the process plant. The site is zero discharge.

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**Figure 20-5: Volume Profile of Dam "D" by Stage Height**

![](ex99-30_126.jpg)

**Figure 20-6: Aerial Photography of the Dam "D" TSF**

![](ex99-30_127.jpg)

Source: Glencore (2021)

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Porco currently disposes of all waste rock underground; thus, surface management is not required. Process tailing and sludge from the water treatment plant are both stored in the Tailing Storage Facility (dam "D"). Domestic waste is collected by the Porco cleaning company, who is supported by Illapa with equipment and a front-end loader, to move the waste in Porco's sanitary landfill. Hospitals in Agua de Castilla and Porco generate a considerable amount of biological hospital waste, which is classified and carefully stored for subsequent incineration.

**Table 20-3: Stored Solid Waste Tonnages**

![](ex99-30_128.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

20.2.2 Water
 Management - Porco

Porco Mine is a zero-discharge operation. The mine produces about 35 liters/s excess water, which combined with that precipitation captured in the Tailings Storage Facility makes up 85% of the fresh water supply and is the major source for Industrial make-up water. Treated discharge is reused for drilling and dust suppression water underground and the process plant uses mine water combined with reclaim from the Tailings Storage Facility. Porco Mine has permits in place for maximum water needed, however limits the use of fresh makeup water from the Jalsuri spring to potable needs at campsite and offices, and to prepare certain reagents.

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**Figure 20-7: Porco Mine Water Balance**

![](ex99-30_129.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

20.3 Permitting

Santacruz Silver operates the Porco Mine as a joint venture with the Bolivian Government (COMIBOL) The structure of the contract with COMIBOL is a "Partnership Contract governing Bolivar and Porco Mines (CA-MBP), and its purpose is to develop and implement a mining operation for the treatment of the existing mineralogical reserves and resources in the Bolívar and Porco Mines, by the exploitation, preparation, beneficiation and sale of mineral concentrates. Contrato de Asociación Sociedad Minera Illapa S.A. is authorized as operator and responsible of executing on behalf of COMIBOL, all the operations and activities of the association contract. The shares of CA-MBP are 55% for COMIBOL and 45% for Contrato de Asociación Sociedad Minera Illapa S.A." This renewable agreement expires in 2028.

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Mining Contracts that grant the right to the subsoil mining resource, is granted by the Mining Administrative Jurisdictional Authority (AJAM) over the ATE mining areas, and a contract is granted for each area or contiguous group of areas. Recent changes to the laws and government personnel have pushed Santacruz contract updates into a transitionary period waiting for final signatures and approvals. Santacruz holds Special Transitory Authorizations for each contract area which are officially designated "Mining Administrative Contracts for Adaptation". As of the effective date, approximately half of the applications have been transitioned, and the remainder fall under Article 187 of Law No. 535 on Mining and Metallurgy, which states:

*<u>ARTICLE 187</u>. (CONTINUITY OF MINING ACTIVITIES). Holders of Special Transitory Authorizations to be adapted or in the process of adaptation will continue their mining activities, with all the effects of their acquired or pre- constituted rights until the conclusion of the adaptation procedure.*

 

Santacruz has fully complied with this administrative procedure and is waiting for the Mining Administrative Authority to issue the relevant documents. It should be noted that this public entity has a considerable delay in the issuance of these documents.

Environmental Licenses have been formally granted to allow operation for all mining activity, by

**Table 20-4: Environmental Licenses Held by Santacruz**

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| &nbsp;&nbsp;**Operation** | **License** |
| &nbsp;&nbsp;Bolívar | &nbsp;&nbsp;040603-02-da-0324/14 |
| &nbsp;&nbsp;Porco | &nbsp;&nbsp;051203-02-da-0031/14 |
| &nbsp;&nbsp;Caballo Blanco – Colquechaquita Mine | &nbsp;&nbsp;050101-02-da-131/11 |
| &nbsp;&nbsp;Caballo Blanco – Mina Reserva and Tres Amigos | &nbsp;&nbsp;050101-02-da-561/11 |
| &nbsp;&nbsp;Caballo Blanco – Don Diego Concentrator Plant | &nbsp;&nbsp;050302-02-da-003/2024 |
| &nbsp;&nbsp;Caballo Blanco – San Lorenzo Mine | &nbsp;&nbsp;050101-02-da-005/06 |
| &nbsp;&nbsp;Comco | &nbsp;&nbsp;050101-02-da-006/09 |
| &nbsp;&nbsp;Soracaya | &nbsp;&nbsp;050801-02-CD-C3-002/2017 |
| &nbsp;&nbsp;Aroifilla Thermoelectric Plant | &nbsp;&nbsp;050101-04-da-007/2023 |
| &nbsp;&nbsp;Yocalla Hydroelectric Plant | &nbsp;&nbsp;050103-05-da-006/2023 |

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20.4 Community
 Relations

Santacruz mining projects are mostly well-established operations with a long history and a developed infrastructure, which provide direct benefits to employees and supporting businesses. However, the mines are located in rural to semirural areas in which the surrounding mostly agricultural communities can benefit from each operation only indirectly or through company outreach. Santacruz supports these communities by addressing services that are lacking, and helping to create value with economic development programs, and other forms of support.

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Mining represents a significant portion of the Bolivian economy and is especially critical to local economies through employment, tax revenue and local procurement or supply. The high dependency on mining of areas influenced by Santacruz operations obliges responsible action and support for the health of these communities, as well as its employees and their families. Santacruz is interested in fostering an environment of social peace, respect, and mutual progress. The Social Management team for each operation consists of a dedicated Superintendent along with supporting personnel who ensure the fulfillment of its commitment to the communities.

To be most effective local Social Management groups have established communication channels to learn about the perceptions, concerns, requests, or complaints from within stakeholder communities. The communities can communicate their inquiries, complaints, concerns, and issues through letters addressed to the company, formal meetings, or the Santacruz "Ethics Hotline" channel. The local Social Management team routinely conducts community and area visits inspections and, in the case of a complaint, conducts the necessary verifications. The main channel of communication is through in-person meetings involving community leaders where minutes are recorded. As such, all parties can move cooperatively forward with acceptable initiatives and mitigations.

Prior to action, Santacruz must take into consideration social challenges faced by the country and the communities, as well as each initiative's possible impacts on the life of people. Its actions are aimed at identifying vulnerable groups and obtaining their participation. It identifies impacts and assess risks associated with each initiative, as well as changes in Santacruz's operations that may have repercussions on the community.

**Table 20-5: Communities and Population Proximal to Santacruz Operations**

Source: Santacruz (2023)

Common concerns addressed during the meetings with community leaders focus on job opportunities within the company and monitoring medium- to long-term commitments. The change of shareholders that occurred with the Santacruz purchase in March 2022 generated uncertainty in several communities, and a process of communication and meetings was necessary to assure and demonstrate that the company will maintain normal operations and fulfill its commitments to the fullest extent. The major concerns of the proximal communities put forth in 2022 are outlined in Table 20-6.

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**Table 20-6: Concerns put forth by Proximal Communities in 2022**

![](ex99-30_131.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

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Santacruz's investments focus on donation of assets, goods, products, and in-kind services, minimizing cash disbursements to directly benefit the communities. As part of Santacruz's support, Santacruz has invested over $300,000 in infrastructure, including housing, pedestrian bridges, electrification, water diversion systems for irrigation, and basic sanitation, among other infrastructure projects. As a company, Santacruz encourages the communities to manage and prioritize long-term projects with a greater impact. At all times, and particularly during implementation, the communities are heavily involved in each project.

A rigorous company due diligence policy governs the contributions and investments made to community projects, so that they are made in accordance with the company's values and ethics codes. The process begins with the requests proposed by the communities through their leaders, followed by meetings held between the Community leaders and the company during which, formal agreements are executed, which approve mutually accepted projects to be implemented.

**Figure 20-8: Total Investment in Communities**

![](ex99-30_132.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

A key player connected with all Bolivian Mines and surrounding areas are the mining cooperatives which are organized independent mining entities, some quite capable and organized with their own equipment. Recognized by the government as a valid economic activity for local development, they conduct their activities in abandoned mines or expropriating active mines, which can pose risks to business. The relationship is not completely one-sided as the Cooperatives sell mineralized material to process their product, thus mechanisms are in place to face possible subjugations, protect mine employees and the communities.

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More importantly, proactive solutions and agreements to avoid conflict and coexist peacefully with the different cooperatives are in place. As much as possible, with cooperatives as toll processors at Santacruz Process Plants, compliance with occupational health and safety, human rights, and good work practice is sought.

To incorporate a new supplier, an assessment is required, including:

● Submission of legal documents proving that they are up to date with regard to any rules in force;

● The mineral supplier's background is verified; for this purpose, we have access to the Thomson Reuters and Info center systems, which report their background globally. This system informs us whether the supplier has any negative local or international background; in that case, Santacruz would not deal with them;

● Commercial visit to the supplier's operations, to directly verify the standards such as the 132 company's Code of Ethics; In particular, whether or not child labor is employed in the operations, and any other Human Rights violations, and observations of the use of safety equipment and personal protective equipment; and

● Machinery is assessed to ensure good condition safe operation.

Once all these steps are completed and upon the in-situ verification of legal documents, the relationship with the cooperative is authorized. A pilot support program was launched in 2019 to supply advisors and technical assistance on environment, human rights, occupational health & safety, and administrative management. The goal being to help mineral suppliers improve their internal systems and processes to ensure sustainability and compliance with Santacruz sustainability standards.

Santacruz's community investment programs are aimed mostly at communities directly influenced by the operations. Community investments are designed to maximize positive impact, recognizing that each community has unique requirements and living conditions; therefore, Santacruz prioritizes based on number of beneficiaries, vulnerability, long-term sustainability, and urgency of need.

The Porco operation is located 50 km southwest of the city of Potosí, at an average elevation of 4,147 masl, in the province of Antonio Quijarro, Porco Canton of the Department of Potosí. Road access exists from Potosi via paved National Route #5 connecting Potosi to Uyuni, and a short stretch of gravel road that leads to Porco. Concentrate is shipped via rail from a warehouse proximal to the plant site in the town of Agua de Castilla.

Porco is a completely self-contained industrial center which supports the two main processes of mineral exploitation and concentration. There also exist on site, management, maintenance, transportation and sales support. Porco has been a mining area since colonial times, and mining is its main source of income. It is inhabited by civilians with outside sources of income, cooperative miners, and Santacruz workers with their families. The company works closely with the local populations, the most important being Porco and Agua de Castilla, as well as other smaller, satellite communities. Two cooperatives also work at, and adjacent to, Santacruz operations.

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**Table 20-7: Porco Local Populations**

![](ex99-30_133.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

**Figure 20-9: Porco Surrounding Communities**

![](ex99-30_134.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

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20.4.1 Education

Santacruz has engaged in the following activities to support education in the region:

● Provided meals for students, paying salaries of "Desayuneras" (personnel that prepare meals), and providing the principals of the local schools J. M. Linares and Agua Castilla;

● Established a scholarship program for outstanding students who are children of employees. In 2022, 10 scholarships were awarded; and

● Supported the educational units in Porco and Agua de Castilla by paying the salaries of 15 teachers.

20.4.2 Community
 and Economic Development

Santacruz has encouraged community and economic development in the region following ways:

● Constructed infrastructure, including both structural and finishing works, for the COSAP's (Porco Water Cooperative) offices, including meeting rooms, the accountant's office, and sponsorship for water supply. This project directly benefits 60 individuals and indirectly supports the entire population of Porco;

● Provided technical training in Cooking in Porco and "Machine Knitting" in Agua de Castilla, each lasting for 6 months. These programs were implemented in 7 women's centers, benefiting a total of 520 women; and

● Supported the delivery of 5 houses with finishing works to the educational board, intended to be given to teachers in need. Approximately 5 families, and indirectly around 500 individuals, will benefit from this initiative.

20.4.3 Local
 Needs

Santacruz has responded to local needs in several ways including the following:

● Constructed the pedestrian bridge in Puca Puca, spanning 24 m, which has benefited 90 families;

● Supported traditional local activities, including City and National anniversaries, and local sports ad recreational activities; and

● Donated to the downstream communities in accordance with their irrigation needs and provided uniforms for one school in these communities.

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**Figure 20-10: Porco Community Investment**

![](ex99-30_135.jpg)

Source: Sustainability Report, Sinchi Wayra (2022)

One important characteristic of the Porco Operation is the presence of mining cooperatives, particularly those working in and around the Santacruz operation. Some of these cooperatives are legitimate entities under agreement with Santacruz to exploit the near surface areas of the same deposit being mined by Santacruz. Therefore, cooperatives share mine access with Santacruz workers. From 2013, it was agreed that Contrato de Asociación Sociedad Minera Illapa S.A. would exploit the levels lower than levels 4,213 and 4,225, in the central area and Hundimiento, respectively. However, members of the cooperatives regularly violate the agreement and access active Santacruz areas, which at times can endanger the safety of Santacruz personnel and infrastructure.

Much effort has been spent to successfully control this risk, with agreements put in place with large cooperatives to purchase their mineral. However, the influx of illegal miners who are less likely to negotiate is a constant risk to safe and productive operations.

20.5 Mine
 Closure

Closure Planning for Operations has social, economic, workforce, and environmental impacts, so conceptual closure plans are shared with communities. Santacruz's goal is to recover areas by establishing a healthy ecosystem capable of sustaining productive land use, ensuring the best possible environmental conditions, including physical, chemical, biological, and ecosystem aspects, at closure. Environmental superintendents are responsible for monitoring the environmental closure planning, and periodic reviews of these plans are conducted, including surveys of areas and activities to adjust financial provisions for closure.

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Land Use and Rehabilitation - environmental challenges related to biodiversity protection, soil restoration, and land use, are addressed through dialogue with stakeholders, including local communities and relevant authorities. Our comprehensive environmental management focuses on minimizing disturbed areas. In 2022, Santacruz managed a total of 6,600 hectares of land covered by Temporary Special Authorizations (ATEs) granted by the Mining Administrative Jurisdiction Authority (AJAM), under leasing contracts with the Government through COMIBOL. However, Santacruz's processing activities, services, and related infrastructure (industrial area) currently occupy only 400.5 hectares of land, including areas of previous mining operations and other areas with environmental closure located within the properties Santacruz manage.

In 2022, Santacruz continued with the reforestation plan in the Queaqueani Dam area, in accordance with an agreement with the community of the same name, and significant progress was made in the progressive closure of the old tailings facilities at the Don Diego Concentrator Plant.

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21 CAPITAL AND OPERATING COST ESTIMATES

21.1 Capital
 Costs

The Porco Mine has been in continuous operation for many years. There will be, as the reserve is expanded and developed, the need for step changes in mine access, production or haulage methods, that may require large capital outlays. These will be financially justified as needed. However, the capital needs for continued operation to exploit the remaining reserves is limited to Primary mine development, Capital equipment rebuilds and replacements, and Tailing Storage Facility expansions. Average annual capital has been and is projected to be in the 4 to 5 million USD range. The historic total capital requirement for all the Bolivian operations is shown in Table 21-1. Porco's projected capital requirements for 2023 to 2027 is shown on Table 21-2.

**Table 21-1: Actual Combined Capital Requirement for All Bolivian Operations, 2017 to 2022 ($M)**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **2017** | **2018** | **2019** | **2020** | **2021** | **2022** |
| &nbsp;&nbsp;Bolivar | 8.8 | 13.7 | 13.7 | 6.3 | 11.3 | 10.2 |
| &nbsp;&nbsp;**Porco** | **3.0** | **8.8** | **8.4** | **3.6** | **5.3** | **3.1** |
| &nbsp;&nbsp;Reserva | 1.3 | 2.4 | 2.1 | 2 | 4.3 | 3.5 |
| &nbsp;&nbsp;Tres Amigos | 2.1 | 2.6 | 1.5 | 1.8 | 2.2 | 3 |
| &nbsp;&nbsp;Don Diego | 0.9 | 6.9 | 1.4 | 0.9 | 1.1 | 1.2 |
| &nbsp;&nbsp;Colquechaquita | 1.2 | 2 | 1.4 | 1 | 3 | 2.5 |
| &nbsp;&nbsp;La Paz | 3.3 | 0.6 | 0.3 | 0.4 | 0.2 | 0.7 |
| &nbsp;&nbsp;Soracaya | 0.5 | 2.1 | 0.2 | 0.1 |  |  |
| &nbsp;&nbsp;San Lucas | 0.8 | 0 | 0 | 0.1 | 0.4 |  |
| &nbsp;&nbsp;**Total** | **21.8** | **39.0** | **28.5** | **16.3** | **27.8** | **24.3** |

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SANTACRUZ SILVER MINING LTD. \| PORCO TECHNICAL REPORT PAGE 21-1

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**Table 21-2: Projected Capital Requirement for Porco Operations, 2021 to 2027 ($M)**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **2023** | **2024** | **2025** | **2026** | **2027** |
| &nbsp;&nbsp;Engineering/Admin |  |  | 0.1 | 0.0 |  |
| &nbsp;&nbsp;Safety/Environmental |  |  | 0.2 | 2.0 |  |
| &nbsp;&nbsp;Mobile Equipment/Maint |  |  | 0.9 | 1.8 | 1.2 |
| &nbsp;&nbsp;Plant | 0.3 | 0.5 | 0.3 | 0.3 | 0.2 |
| &nbsp;&nbsp;Exploration |  | 0.0 | 0.4 | 0.2 | 0.2 |
| &nbsp;&nbsp;Primary development |  |  | 1.4 | 1.7 | 2.4 |
| &nbsp;&nbsp;**Total** |  | **2.9** | **6.4** | **4.1** | **2.5** |

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Recurring exploration and primary development costs have been included in the COG calculations to better anticipate and account for total costs and make the COG more meaningful for reserve estimation and mine planning.

21.2 Operating
 Costs

Costs used for Cut-Off-Grade analysis were taken from actual costs from the last 6 months of 2022, and the first three months of 2023. This most recent cost history was deemed the most accurate and stable period, and which best represented the true costs of the operation. Sinchi Wayra was acquired by Santacruz Silver in March of 2022, so it was decided to use actual costs incurred while the mines were under current ownership. The actual cost of corporate G&A was allocated to each of the businesses.

**Table 21-3: Unit Operating Costs ($/t)**

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|:---|:---|
| &nbsp;&nbsp;**Mine** | **94.68** |
| &nbsp;&nbsp;Mine operations | &nbsp;&nbsp;16.06 |
| &nbsp;&nbsp;Mine maintenance | &nbsp;&nbsp;58.85 |
| &nbsp;&nbsp;Indirect | &nbsp;&nbsp;19.78 |
| &nbsp;&nbsp;Plant | &nbsp;&nbsp;15.04 |
| &nbsp;&nbsp;Warehouse | &nbsp;&nbsp;1.94 |
| &nbsp;&nbsp;G&A | &nbsp;&nbsp;13.36 |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**125.02** |

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Mine operations include direct costs of mining, including labor, energy, materials, and services.

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Mine Equipment Maintenance Costs includes maintenance to all equipment related to direct development, exploitation and haulage, as well as service equipment such as pumping, ventilation, winches, etc.

Indirect costs would include Site Management, Technical services, Site Administration, Environmental and Social, Safety and Security.

Plant costs include direct Beneficiation costs as well as plant maintenance, and indirect costs. Warehouse costs refer to Concentrate handling and storage.

General and Administration includes allocated Bolivian corporate costs.

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22 ECONOMIC ANALYSIS

22.1 Result

The Reserve Estimate was generated using actual costs experienced during a stable production period following the change in management after the purchase of the mine by Santacruz Silver (2022 and beginning of 2023). Actual costs were used for mine operating, concentrate overland transport, port costs, and shipping as well as smelting fees, payment terms, and penalty charges in effect during that period. A simplified Cash flow model was built to model the costs and conditions used to generate the Reserve estimates stated in this report.

The Porco Mine is part of a multi-operation business. However, the Economic model treats it as a separate financial entity with Bolivian corporate costs allocated for the analysis. As well, the operation is subject to a partnership with the Bolivian Government (COMIBOL), but the financial modelling examines the value of the operation on a 100% basis to support the Reserve statement.

The Porco Mine has been in continuous operation for over 500 years and the deposit is a network of relatively narrow veins. These two aspects drive the normal exploitation process of the mine, where inferred resources are converted and exploited in the same budget year. Resources are generally proven-up by drifting and sampling instead of drilling. Therefor normal budgeting and mine planning includes resources outside of the Reserve estimate.

For the current exercise in this report, only Proven and Probable reserves are included in financial evaluation, so the production schedule represents the depletion of these reserves at average grade and current production rates. The context of the production schedule exploits the Proven and Probable reserves as part of a continuous operation and as such does not include the closure activities.

**Table 22-1: Production Forecast – Mining and Processing**

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|:---|:---|:---|:---|
| | **Unit** | **2023** | **2024** |
| &nbsp;&nbsp;**Mine Production** | &nbsp;&nbsp;**Mine Production** | &nbsp;&nbsp;**Mine Production** | &nbsp;&nbsp;**Mine Production** |
| &nbsp;&nbsp;Tonnes Mined | (DMT) | 197400 | 121772 |
| &nbsp;&nbsp;Tonnes Processed | (DMT) | 197400 | 121772 |
| &nbsp;&nbsp;Head Grades |  |  |  |
| &nbsp;&nbsp;Zinc | (%) | 12.71 | 12.71 |
| &nbsp;&nbsp;Lead | (%) | 0.72 | 0.72 |
| &nbsp;&nbsp;Silver | gr/t | 162 | 162 |

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SANTACRUZ SILVER MINING LTD. \| PORCO TECHNICAL REPORT PAGE 22-1

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Metallurgical recoveries and concentrate qualities are actual for the times and head grades that were actually mined. These parameters will necessarily be conservative considering the higher grades in the production schedule.

**Table 22-2: Production Forecast - Concentrate**

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| | | | |
|:---|:---|:---|:---|
| | **Unit** | **2023** | **2024** |
| &nbsp;&nbsp;**Concentrates** | &nbsp;&nbsp;**Concentrates** | &nbsp;&nbsp;**Concentrates** | &nbsp;&nbsp;**Concentrates** |
| &nbsp;&nbsp;Zinc | (DMT) | 46279 | 28548 |
| &nbsp;&nbsp;Zn Conc. Grade | (%) | 51 | 51 |
| &nbsp;&nbsp;Ag (in Zinc) | gr/t | 266 | 266 |
| &nbsp;&nbsp;Zn Recovery | (%) | 94 | 94 |
| &nbsp;&nbsp;Ag (in Zinc) | (%) | 38 | 38 |
| &nbsp;&nbsp;Lead | (DMT) | 1984 | 2444 |
| &nbsp;&nbsp;Pb Conc. Grade | (%) | 54 | 27 |
| &nbsp;&nbsp;Ag (in lead) | gr/t | 8069 | 4049 |
| &nbsp;&nbsp;Pb Recovery | (%) | 76 | 76 |
| &nbsp;&nbsp;Ag (in Lead) | (%) | 50 | 50 |
| &nbsp;&nbsp;**Metal Recovery** | &nbsp;&nbsp;**Metal Recovery** | &nbsp;&nbsp;**Metal Recovery** | &nbsp;&nbsp;**Metal Recovery** |
| &nbsp;&nbsp;Zinc | (FMT) | 24000 | 15000 |
| &nbsp;&nbsp;Silver (in Zinc) | (FOT) | 395000 | 244000 |
| &nbsp;&nbsp;Lead | (FMT) | 1000 | 1000 |
| &nbsp;&nbsp;Silver (in Lead) | (FOT) | 515000 | 318000 |
| &nbsp;&nbsp;Silver (Total) | (FOT) | 910000 | 562000 |

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Notes:

FMT = Fine Metric Tonnes; DMT = Dry Metric Tonnes; FOT = Fine Ounces Troy

That same logic follows to the net revenue generation (Table 22-3) which includes smelter charges and penalty fees.

**Table 22-3: Revenue and Cost Projection ($M)**

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|:---|:---|:---|:---|
| | **Unit** | **2023** | **2024** |
| &nbsp;&nbsp;**Payable Metal Revenue** | &nbsp;&nbsp;**Payable Metal Revenue** | &nbsp;&nbsp;**Payable Metal Revenue** | &nbsp;&nbsp;**Payable Metal Revenue** |
| &nbsp;&nbsp;Zinc | | 60 | 37 |
| &nbsp;&nbsp;Metallurgical Deduction | | 9 | 6 |

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|:---|:---|:---|:---|
| | **Unit** | **2023** | **2024** |
| &nbsp;&nbsp;Gross Payable Zinc |  | 50 | 31 |
| &nbsp;&nbsp;Lead |  | 2 | 1 |
| &nbsp;&nbsp;Metallurgical Deduction |  | 0 | 0 |
| &nbsp;&nbsp;Gross Payable Lead |  | 2 | 1 |
| &nbsp;&nbsp;Silver |  | 19 | 12 |
| &nbsp;&nbsp;Metallurgical Deduction in Zinc |  | 5 | 4 |
| &nbsp;&nbsp;Metallurgical Deduction in Lead |  | 1 | 0 |
| &nbsp;&nbsp;Gross Payable Silver |  | 14 | 8 |
| &nbsp;&nbsp;Gross Revenue (Total) |  | 67 | 40 |
| &nbsp;&nbsp;**Smelter Charges and Penalties** | &nbsp;&nbsp;**Smelter Charges and Penalties** | &nbsp;&nbsp;**Smelter Charges and Penalties** | &nbsp;&nbsp;**Smelter Charges and Penalties** |
| &nbsp;&nbsp;Treatment charges Zn | (USD/t) | 230 | 277 |
| &nbsp;&nbsp;Treatment charges Zn |  | 11 | 8 |
| &nbsp;&nbsp;Treatment charges Pb | (USD/t) | 130 | 133 |
| &nbsp;&nbsp;Treatment charges Pb |  | 0 | 0 |
| &nbsp;&nbsp;Penalties in Zn | (USD/t) | 3 | 7 |
| &nbsp;&nbsp;Penalties in Zn |  | 0 | 0 |
| &nbsp;&nbsp;Penalties in Lead | (USD/t) | 0 | 13 |
| &nbsp;&nbsp;Penalties in Lead |  | 0 | 0 |
| &nbsp;&nbsp;Refining Charges in Pb | (USD/FOZ) | 1 | 1 |
| &nbsp;&nbsp;Refining Charges in Pb |  | 1 | 0 |
| &nbsp;&nbsp;Smelter Fees and Penalties |  | 12 | 9 |
| &nbsp;&nbsp;Net Revenue |  | 55 | 31 |
| &nbsp;&nbsp;**Operating Costs** | &nbsp;&nbsp;**Operating Costs** | &nbsp;&nbsp;**Operating Costs** | &nbsp;&nbsp;**Operating Costs** |
| &nbsp;&nbsp;Production Costs |  | 22 | 14 |
| &nbsp;&nbsp;Cost of Sales |  |  |  |
| &nbsp;&nbsp;Rail Freight Zn |  |  | 3 |
| &nbsp;&nbsp;Rail Freight Pb |  |  | 0 |
| &nbsp;&nbsp;Port Expenses Zn |  | 2 | 1 |
| &nbsp;&nbsp;Port Expenses Pb |  |  | 0 |
| &nbsp;&nbsp;Rollback Fee Zn |  | 4 | 2 |
| &nbsp;&nbsp;Rollback Fee Pb |  | 0 | 0 |
| &nbsp;&nbsp;Concentrate Freight and Port Costs | &nbsp;&nbsp;Concentrate Freight and Port Costs | 7 | 7 |
| &nbsp;&nbsp;Mine Royalty |  | 4 | 3 |
| &nbsp;&nbsp;Communities and Unions |  | 1 | 2 |
| &nbsp;&nbsp;**Total Cost of Sales** |  | **34** | **25** |

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PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 22-3

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The mine royalty shown in Table 22-3 is paid to the state government, comprising 6% for precious metals (silver and gold) and 5% for base metals (zinc and lead).

Depreciation is a product of previous operation and annual capital expenditure incurred for the exploitation of the reserve tonnage. Capital is limited to that required to support mining, processing, and tailing storage for the reserve. Corporate G&A is that part of the in-country costs allocated to the Porco mine.

**Table 22-4: Cashflow Projection ($M)**

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|:---|:---|:---|
| | **2023** | **2024** |
| &nbsp;&nbsp;**Income Statement** | &nbsp;&nbsp;**Income Statement** | &nbsp;&nbsp;**Income Statement** |
| &nbsp;&nbsp;Net Revenue | 55 | 31 |
| &nbsp;&nbsp;Production Costs | (22) | (14) |
| &nbsp;&nbsp;Selling Costs | (12) | (12) |
| &nbsp;&nbsp;Depreciation | (2) | (3) |
| &nbsp;&nbsp;**Gross Profit** | 20 | 3 |
| &nbsp;&nbsp;Corporate G&A | (2) | (1) |
| &nbsp;&nbsp;Corporate Administrative Expenses | (2) | (1) |
| &nbsp;&nbsp;**Operating profit** | 18 | 2 |
| &nbsp;&nbsp;**EBIT** | 18 | 2 |
| &nbsp;&nbsp;Income Tax Expense (CIT) | (6.6) | (0.7) |
| &nbsp;&nbsp;**Net Gain/(Loss) for the Year** | 11 | 1 |
| &nbsp;&nbsp;**Cashflow Statement** | &nbsp;&nbsp;**Cashflow Statement** | &nbsp;&nbsp;**Cashflow Statement** |
| &nbsp;&nbsp;**Cash from Operations Activities** |  |  |
| &nbsp;&nbsp;Net Income | 11 | 1 |
| &nbsp;&nbsp;Depreciation | 2 | 3 |
| &nbsp;&nbsp;**Subtotal** | 13 | 4 |
| &nbsp;&nbsp;**Cash from Investing Activities** |  |  |
| &nbsp;&nbsp;Sustaining Capital Expenditure | (2) | - |
| &nbsp;&nbsp;**Subtotal** | (2) | - |
| &nbsp;&nbsp;**Cash Balance** |  |  |
| &nbsp;&nbsp;Beginning | - | 10 |
| &nbsp;&nbsp;Change in Cash | 10 | 4 |
| &nbsp;&nbsp;**Ending** | **10** | **14** |

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Income Tax is 37.5% of the EBIT. As seen, the operations generate a positive cash flow after tax upon exploitation of the stated reserve at the metal prices used to generate the reserve.

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22.2 Sensitivities

A univariate sensitivity analysis was performed to examine which factors most affect the Project economics when acting independently of all other cost and revenue factors. Each variable evaluated was tested using the same percentage range of variation, from -20% to +20%, although some variables may experience significantly larger or smaller percentage fluctuations over the LOM. For instance, the metal prices were evaluated at a ±20% range to the base case, while the capex and all other variables remained constant. This may not be truly representative of market scenarios, as metal prices may not fluctuate in a similar trend. The variables examined in this analysis are those commonly considered in similar studies – their selection for examination does not reflect any particular uncertainty.

Notwithstanding the above noted limitations to the sensitivity analysis, which are common to studies of this sort, the analysis revealed that the Project is most sensitive to metal pricing. The Project showed the least sensitivity to capital costs. Figure 22-1 shows the results of the sensitivity analysis.

**Figure 22-1: Univariate Sensitivities**

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23 ADJACENT PROPERTIES

There are no relevant adjacent properties to the Porco Project.

SANTACRUZ SILVER MINING LTD. \| PORCO TECHNICAL REPORT PAGE 23-1

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24 OTHER RELEVANT DATA AND INFORMATION

Mining has been ongoing since the effective date of this report through 2023 and into 2024. Total mining in 2023 was 190,837 t at a grade of 126 g/t Ag, 0.54% Pb, and 6.61 % Zn, resulting in the production of 665 koz of Ag, 777 t of Pb, and 11,901 t of Zn.

This production cannot simply be subtracted from the January 1, 2023, resource or reserve estimates contained in this report, however. As described previously, reserves and resources are adjusted as the mining progresses based on development along vein and associated sampling. These adjustments can be significant, and the geologic block model is updated to account for this new information. The operations team at Porco uses the considerable modelling tools and methods at their disposal to incorporate these operational updates to guide their mine planning.

The January 1, 2023 Reserves statement is based on a fixed model. However, block model updates are generated for annual budgeting and forecasting. These updates incorporate projected operating costs, updated block grades and NSR factors as applicable.

A significant amount of the 2023 production came from blocks that were not included in the stated January 1, 2023 reserves.

However, actual dilution was 15%, slightly higher than the 12.5% estimated in the January 1, 2023 reserves.

This ongoing estimation process provides a good mine planning guide as well as an accurate empirical tool for reconciliation. A direct reconciliation with the January 1, 2023 Reserve and Resource blocks stated in this report shows that:

● 27% of the mined mineralized production for 2023 originated from the Proven and Probable reserves;

● 22% of mined mineralized production for 2023 originated from Measured, Indicated, and inferred Resources outside of the reserve base, which were converted into reserves as mining progressed; and

● 51% of mined mineralized production for 2023 originated from the increased external dilution and, more significantly, from extraction outside of either the 2023 resources or the reserves.

This analysis provides a good indication of the reserve drawdown and continuous level of replenishment resulting from normal operations in identified and active mineralized veins.

Details of the 2023 production and economic results are included in Santacruz's MD&A filing.

SANTACRUZ SILVER MINING LTD. \| PORCO TECHNICAL REPORT PAGE 24-1

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25 INTERPRETATIONS AND CONCLUSIONS

25.1 Observations

The Porco Project is located in the Cordillera de los Azanaques, forming the western edge of the Cordillera Oriental, which is detached from the Cordillera de los Frailes, belonging to the group of central mountain ranges. Characterized by the essence of undulating plateaus, outstanding mountains parallel to the course of the Andes, with elevations that vary between 3,400 and 4,600 masl. The area is part of the polymetallic belt of the altiplano and the Cordillera Occidental.

The most important ore deposits of the Eastern Cordillera are polymetallic hydrothermal deposits mined principally for Sn, W, Ag and Zn, with sub-product Pb, Cu, Bi, Au and Sb. They are related to stocks, domes and volcanic rocks of Middle and Late Miocene age (22 to 4 Ma). Mineralization occurs in veins, fracture swarms, disseminations and breccias. The deposits of the Eastern Cordillera are epithermal vein and disseminated systems of Au, Ag, Pb, Sb, as that have been telescoped on to higher temperature mesothermal Sn-W veins and, in some cases, porphyry Sn deposits. The telescoping is a characteristic of these deposits and is the result of collapse of the hydrothermal systems, with lower temperature fluids overprinting higher temperature mineralization. The systems show a fluid evolution from a high temperature, low sulphidation state to intermediate sulphidation epithermal and high sulphidation epithermal.

The Porco Project is an "advanced property" and has been in continuous production since 1993. Glencore and subsequently Santacruz Silver has performed exploration and resource expansion drilling consisting of surface and underground drillholes at the Caballo Blanco since 2010 totalling 39,562.55 m. The 128 drillholes and 19,644 underground channels in the database were supplied in electronic format by Santacruz. This included collars, downhole surveys, lithology data and assay data (i.e., Ag g/t, Pb%, Zn%, Fe%, Sn%).

The Porco Mine Project consists of two separate mining zones that essentially function as separate mines, the Hundimiento and Central, that feed ore to a single processing plant on site to produce zinc and lead concentrates. Sinchi Wayra S.A. owns and operates all facets of the Porco business, which is in turn owned by Santacruz.

Verification of the Porco drillhole and underground sample assay databases are primarily focused on silver, lead and zinc in addition to iron, arsenic, sulphur and tin. Sample databases were supplied in Excel<sup>TM</sup> format and in LeapFrog<sup>TM</sup>. Checks against source data and assay certificates showed agreement. Statistical analyses used to investigate and identify errors were performed and resulted in minor issues. These have been corrected and it is recommended that a continued program of random "spot checking" the database against assay certificates be employed.

During the 2023 site visit, an extensive independent sampling verification plan was implemented with a total of 80 samples collected across from the Bolivar, Porco and Caballo Blanco operations. The Don Diego laboratory is an NB/ISO/IEC 17025:2018 accredited laboratory which performs all assay analyses for the mining and processing operations for Sinchi Wayra including Caballo Blanco. The Don Diego laboratory in owned and operated by the Issuer, Santacruz.

Results of the verification samples indicates that the regression predictions perfectly fit the data meaning that the check sampling program successfully verified and validated the data and although, these results are not a complete audit of the laboratory, they do verify that the assay results are suitable for resource estimation purposes.

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The geological and lithological solid domain models were supplied by Santacruz in both Datamine<sup>TM</sup> and LeapFrog<sup>TM</sup> which are both industry-leading software systems. The QP imported the multiple vein domains into a similar system called MineSight<sup>TM</sup> to verify solids volumes and ensure matching of the solids domains against the drillhole and sample database. Results confirmed location and extent of volumes are appropriate to resource estimation purposes.

Resource block models were supplied in Datamine<sup>TM</sup> format which is an industry recognized software system used for resource estimation. These models were then imported to MineSight<sup>TM</sup> for verification of the resource estimation. In addition, independent estimations were run using the verified sample data and vein domains employing inverse distance estimations to ensure reasonableness and verify the resources independently. Results illustrated good agreement between the original and verification models. Verification of the SG regression analysis was also performed by comparing measured versus calculated density values.

The mineral resources were estimated in conformity with CIM's "Estimation of Mineral Resources and Mineral Reserves Best Practices Guidelines" (December 2019) and are reported in accordance with NI 43-101 guidelines. The Qualified Person evaluated the resource in order to ensure that it meets the condition of "reasonable prospects of eventual economic extraction" as suggested under NI 43-101. The criteria considered were confidence, continuity and economic cut-off. The resource listed below is considered to have "reasonable prospects of eventual economic extraction".

Using a cut-off grade of 11.2% ZnEq, the Porco operations resources are presented in Table 25-1.

**Table 25-1: Base-Case Total Mineral Resources at 11.2% ZnEq Cut-off**

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| **Total Porco 2023 Mineral Resources** | **Total Porco 2023 Mineral Resources** | **Total Porco 2023 Mineral Resources** | **Total Porco 2023 Mineral Resources** | **Total Porco 2023 Mineral Resources** | **Total Porco 2023 Mineral Resources** |
| &nbsp;&nbsp;**Mine** | **Category** | **Tonnes ('000)** | **Zn (%)** | **Pb (%)** | **Ag (g/t)** |
| &nbsp;&nbsp;**Porco** | Measured | 566 | 17.17 | 0.88 | 202 |
| &nbsp;&nbsp;**Porco** | Indicated | 253 | 16.38 | 1.02 | 166 |
| &nbsp;&nbsp;**Porco** | Total M+I | 819 | 16.92 | 0.92 | 191 |
| &nbsp;&nbsp;**Porco** | Inferred | 1007 | 15.16 | 0.92 | 117 |

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Notes:

1) The current Resource Estimate was prepared by Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd.

2) All mineral resources have been estimated in accordance with CIM definitions, as required under NI43-101.

3) The Mineral Resource Estimate was prepared using a 11.2% zinc equivalent cut-off grade. Cut-off grades were derived from $25.20/oz silver, $1.38/lb zinc and $1.20/lb lead, and process recoveries of 91% for zinc, 70% for lead, and 89.7% for silver. This cut-off grade was based on current smelter agreements and total OPEX costs of $120.22/t based on 2022 actual costs plus capital costs of $48.68/t, with process recoveries of 91.0% for zinc, 70.0% for lead, and 89.7% for silver. All prices are stated in $USD.

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4) An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

5) Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not account for a resource's mineability, selectivity, mining loss, or dilution. All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

The QPs found that Porco is a well-managed operation that should be capable of sustaining profitable operations for many years to come in the same fashion as it has operated for the past several years.

The reserves were found to be estimated correctly using industry-standard techniques and procedures and industry-standard software by diligent and competent professionals.

The mine has an ample provision of skilled workers. Typical and reasonable ore control systems were in place, but it is possible that the results could be improved with a closer attention to appropriate mining widths, minimizing them wherever possible to minimize dilution.

The single greatest challenge to the operation is the incessant trespassing of illegal miners into the active mining operations. This results in damage of mine equipment (often disrupting the ventilation system), disruption to scheduling, loss of revenue, and poses a real threat to the safety of the workers. How this situation can be ameliorated or prevented is beyond the scope of this document and the cultural awareness of the authors. However, it should be noted that this situation is ongoing and, as such, all production and economic results contained in this report are inclusive of this threat and impediment.

This threat also forces the mine to minimize its resources and reserves. Both require development for expansion, and while a typical mine provides adequate development ahead of production. A typical mine provides adequate development ahead of production for ore definition and proper scheduling. However, the Porco Mine minimizes open development to provide less opportunity for the illegal miners to access and illegally extract its ore. As a result, the operation runs very "hand to mouth" with respect to both access development and resources / reserves. This is demonstrated by the forward planning; 37% of the 2023 schedule was based on inferred resources.

It is difficult to estimate the ability of the mining fleet to execute the mine plan, as industry- standard availability and utilization factors are not tracked by unit or even unit type.

The processing facility at the Porco Mine appears to be well run and in good condition.

25.2 Risks

Many risks exist which are common to most mining projects including operating and capital cost escalation, permitting and environmental compliance, unforeseen schedule delays, changes in regulatory requirements, ability to raise financing and metal price. Many of these ever-present risks can be mitigated with adequate engineering, planning and pro-active management. The most significant risks to this project and its continued development are related socio-economic and geo-political factors.

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The following Risks were identified for the Project:

● Geological interpretations may be subjective and may result in the location and extent of some of the mineralized structure although as the Porco mine is comprised of well constrained veins, this risk is minimal;

● As vein thicknesses are narrow, resources may be sensitive to dilution although the relative high grades that exist at the Porco mine are successful mitigating such risks to date;

● Varying resource classification methods and criteria may vary as more data is considered;

● There is no guarantee that further drilling will result in additional resources or increased classification;

● Lower commodity prices could change size and grade of the potential targets;

● Further work may disprove previous models and therefore result in condemnation of targets and potential negative economic outcomes;

● The single greatest risk to the Project is the activity that is prevalent throughout the region related to Cooperativas and artisanal miners may cause issues for access and for reasonable prospects of eventual economic extraction and may condemn or reduce resources and reserves in those areas and can drastically impact mine planning and scheduling;

● The current political and socio-economic climate in Bolivia poses risks and uncertainties that could delay or even stop development as reported within the Fraser Institute Annual Report 2022 where Bolivia ranks very low in many non-technical metrics. Bolivia has been ranked consistently low for the past five years and ranks in the lower quartile on all metrics that gauge risk and uncertainty. It is difficult to gauge or qualify the level or extents of the risks however, all companies working in Bolivia must continue to be aware of the potential risks and develop mitigation strategies. A significant risk related to the Santacruz Bolivian mineral assets and in particular the mineral resources and mineral reserves is the significant artisanal activity that continues to exist. This activity is not only a socio-economic risk but also affects access to resources and reserves along with potential sterilization of mineral resources;

● Lower commodity pricing will change the size and grade of potential targets;

● Ability to replace mined reserves on an annual basis; and

● Maintenance of permitting.

Figure 22-1The greatest risk to the economic results in this study is from changes to metal prices.

As the mines continues to expand to depth, the following aspects of mine operations will be challenged:

● Worker travel time (reduced time at the face);

● Dewatering inflow quantities, infrastructure and costs; and

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● Ventilation system needs and costs.

As the ore is conveyed by shaft for both mines, and most of the remaining reserve at depth, this could be very impactful on future operations. The shaft will ultimately require extension to depth or trackless equipment will be required to haul the ore to the shaft bottom.

25.3 Opportunities

Project opportunities include:

● A systematic exploration program could provide an excellent opportunity for successfully uncovering new discoveries;

● An increased understanding and derivation of alternative theories may result in further discovery and expansion for the Project;

● A hydrogeological study could help the operation to better characterize and understand water inflows, aiding design work and planning to reduce the impact of major seasonal inflows;

● Higher commodity prices will change size and grade of the potential targets; and

● Potential for expansion and classification upgrade of resources as mining activities progress.

The primary opportunity to the mine is to somehow contain or eliminate the illegal miner situation. This would allow for more predictable scheduling and operations, the ability to expand the resources and reserves, reduce operating costs, and improve the safety of all personnel.

The grade to the mill could be improved the grade to the mill by incorporating a mine dilution control program. As is typical with all narrow width mining, dilution is very sensitive to the mined widths of veins, which must be kept at minimum to accommodate equipment widths. Often, however, veins are over-mined to ensure complete recovery of the ore. This practice significantly increases dilution due to overbreak of the hangingwall and footwall.

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26 RECOMMENDATIONS

To advance the Porco Mine and further evaluate the potential additional veins and increase resources thereby displacing depletion due to ongoing mining activities, the following is recommended:

● Regional exploration for identification of new veins;

● Incorporate structural interpretations to assist regional understanding;

● Analysis of thickness and grade-thickness profiles for resource targeting and predictive dilution study;

● Review and further documentation of QA/QC programs;

● Investigate geo-metallurgical characteristics; and

● Hydrogeological study and modelling should be done to better understand water inflows and minimize their impact on production.

Some surface or near surface targets along with underground drilling for resource delineation and extension. As is typical with all narrow width mining, dilution is very sensitive to the mined widths of veins. Often veins are over-mined to ensure complete recovery, but this practice comes with significantly increased dilution due to overbreak of the hangingwall and footwall. The operation should conduct a thorough test stoping experiment to ensure the most economic balance between incomplete recovery and excessive dilution:

● As is typical with all narrow width mining, dilution is very sensitive to the mined widths of veins. Good work is being done on identifying and qualifying specific stope dilution. Analysis and incorporation of findings into the stope planning and mine operations is an opportunity to increase project value; Often veins are over-mined to ensure complete recovery, but this practice comes with significantly increased dilution due to overbreak of the hangingwall and footwall. The operation should conduct a thorough test stoping experiment to ensure the most economic balance between incomplete recovery and excessive dilution;

● The possibility for ore sorting or should be evaluated. As the mines each have a considerable haulage distance for run-of-mine ore, reducing the quantity to reduce haulage costs could be economically beneficial. On site crushing may be required to conduct sorting, however, offsetting or exceeding the savings it would provide to the trucking costs *;* 

● Metallurgical testwork to investigate opportunities to increase recoveries, through grinding, reagent dosage or newer flotation technologies;

● Investigate geo-metallurgical characteristics of the feed; and

● The operation should continue to maintain diligent accounting centers to determine each mine's profitability and, if necessary, shift resources or assets to maximize profits.

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Availability and utilization factors should be tracked, calculated, and reported for all mining equipment. This information should be used as a management tool to determine which units should be rebuilt or replaced and to avoid or minimize usage of the units with the highest operating costs.

The activities of both Cooperativas and illegal miners must continue to be monitored and action taken to understand and, to whatever extent is possible, control their activities to mitigate safety concerns for the workers reduction to the resources and/or reserves, to avoid disruption of the mine plan.

These recommendations have not been costed, as they represent changes to current practices that can be funded by existing operating budgets.

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27 REFERENCES

*2019 Sustainability Report* – Sinchi Wayra S.A. Illapa S.A.

*2020 Sustainability Report* – Sinchi Wayra S.A. Illapa S.A.

Ahlfeld, F.E. & Schneider-Scherbina, A., 1964. Los yacimientos minerales y de hidrocarburos de Bolivia. Departamento Nacional de Geología (Bolivia) Boletín 5 (Especial), 388 p.

Arce Burgoa, O.R., 2009. *Metalliferous Ore Deposits of Bolivia* p. 45-47.

Asegúrese de incluir la fuente de referencia de cualquier material suministrado a JDS. *Proporcione la ubicación de la fuente original o el autor y el año*. Ejemplo - Glencore (2010).

Barrios, Enrique, Dentons Guevara & Gutierrez S.C., 18 March 2022 "Local Counsel Legal Opinion on the Porco Mine"

Barrios, Enrique, Dentons Guevara & Gutierrez S.C., 18 March "Local Counsel Legal Opinion on the Caballo Blanco Project",

Barrios, Enrique, Dentons Guevara & Gutierrez S.C., 18 March 2022 "Local Counsel Legal Opinion on Empresa Minera San Lucas S.A."

Barrios, Enrique, Dentons Guevara & Gutierrez S.C., 18 March 2022 "Local Counsel Legal Opinion on Sociedad Minero Metalúrgica Reserva Ltda."

Barrios, Enrique, Dentons Guevara & Gutierrez S.C., 18 March 2022 "Local Counsel Legal Opinion on Sociedad Minera Illapa S.A."

Barrios, Enrique, Dentons Guevara & Gutierrez S.C., 18 March 2022 "Local Counsel Legal Opinion on Sinchi Wayra S.A."

Barrios, Enrique, Dentons Guevara & Gutierrez S.C., 18 March 2022 "Local Counsel Legal Opinion on the Illapa Joint Venture"

Cunningham, C. G., Aparicio, H., Murillo, F., Jimenez, N., Lizeca, J. L., Ericksen, G. E. & Tavera, F., 1993. The Porco, Bolivia, Ag-Zn-Pb-Sn deposit is along the ring fracture of the newly recognized Porco caldera. *GSA Abstracts with Programs*, Vol. **25,** No. 5, p. 26.

Cunningham, C. G., Aparicio, H., Murillo, F., Jiménez, N., Lizeca, J. L., McKee, E. H., Ericksen,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. E. & Tavera, F., 1994a. The relationship between the Porco, Bolivia, Ag-Zn-Pb-Sn Deposit and the Porco Caldera. *U.S. Geological Survey, Open-File Report* 94-238, 19 p.

Cunningham, C. G., Aparicio, H., Murillo, F., Jiménez, N., Lizeca, J. L., McKee, E. H., Ericksen,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. E. & Tavera, F., 1994b. Relationship between the Porco, Bolivia, Ag-Zn-Pb-Sn Deposit and the Porco Caldera. *Economic Geology*, Vol. 89, p. 1833-1841.

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Cunningham, C.G., Zartman, R.E., McKee, E.H., Rye, R.O., Naeser, C.W., Sanjines, V.O., Ericksen, G.E. and Tavera, V.F., 1996. The age and thermal history of Cerro Rico de Potosi, Bolivia. *Mineralium Deposita*, v. 31, p. 374-385.

Cunningham et al (1994-12-01). "*Relationship between the Porco, Bolivia, Ag-Zn-Pb-Sn deposit and the Porco Caldera*". Economic Geology. 89 (8): 1833–1841. doi:10.2113/gsecongeo.89.8.1833. ISSN 0361-0128.

Demoulin Black – provided legal description of the financial transaction between Santacruz Silver Mining Ltd and Glencore Plc.

Encyclopedia Britannica – *Bolivian Mining History*

 

Francis, P.W., Baker, M.C.W. & Halls, C., 1981. The Kari caldera, Bolivia, and the Cerro Rico stock. *Journal of Volcanology and Geothermal Research*, v. 10, p. 113-124.

Glencore – *HSEC Assurance Report – Verification 3 Assessment – Zinc, Sinchi Wayra, Bolivia Tailing Storage Facilities*, December 2020 – Klohn Crippen Berger.

Glencore – *Management Presentation March/April 2021* – Slide 7 (concentrate logistics), Mining section diagrams and general material movement.

In Annex F (separate document), *the technical engineering report for the construction of Phase VI*

 

Jiménez, N., Sanjinés, O., Cunningham, Ch., Lizeca, J.L., Aparicio, H., McKee, E., Tavera, F. & Ericksen, G., 1998, La Caldera resurgente de Porco y su relación con la mineralización de Ag-Zn-Pb. *Memorias del XI Congreso Geológico de Bolivia*, Tarija, p.132-146.

Kato, J. J., 2013. Geochemistry of the Neogene Los Frailes Ignimbrite Complex on the Central Andean Altiplano Plateau. Unpublished MSc thesis, Cornell University, xiv + 173 p.

Kato, J. J., Kay, S. M., Coira, B. L., Jicha, B. R., Harris, C., Caffe, P. J. & Jimenez, N., 2014. Evolution and Geochemistry of the Neogene Los Frailes Ignimbrite Complex on the Bolivian Altiplano Plateau. *XIX Congreso Geológico Argentino*, Córdoba, Argentina, June 2014, abstract S24-3-6.

Kay, S. M., Kato, J. J., Coira, B. L. & Jimenez, N., 2018. Isotopic and Geochemical Signals of the Neogene Los Frailes Volcanic Complex as Recorders of Delamination and Lower Crustal Flow under the Southern Altiplano of the Central Andes. *11th South American Symposium on Isotope Geology*, Cochabamba, Bolivia, 22-25 July 2018, abstract.

Kirkham, G., Crowie, T. and Corso, W. 2021. JDS "*NI43-101 Technical Report, Porco Project, Oruro State, Bolivia*" dated December 21, 2021.

Ludington, S., Orris, G.J., Cox, D.P., Long, K.R. & Asher-Bolinder, S., 1992. Mineral deposit models. In USGS-Geobol, Geology and Mineral Resources of the Altiplano and Cordillera Occidental, Bolivia. *USGS Bulletin* 1975, p. 63-89.

Presentación *General Mina Bolívar* 6-08-2021

*Production Reports 2021* – Microsoft Excel Worksheet (.xlsx) provided by Mr Grover Ignacio

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Redwood, S. D., 1993. *The Metallogeny of the Bolivian Andes*. Mineral Research Unit, Short Course No. 15. UBC, Vancouver, B.C., Canada, 59 p.

Rice, C.M., Steele, G.B., Barfod, D., Boyce, A.J., and Pringle, M.S., 2005. Duration of magmatic, hydrothermal and supergene activity at Cerro Rico de Potosi, Bolivia. *Economic Geology*, v. 100, p. 1647-1656.

Schneider, A., 1985. Eruptive processes, mineralization and isotopic evolution of the Los Frailes Kari Region, Bolivia. Unpublished Ph.D. thesis, Royal School of Mines, Imperial College, University of London, London, 290p.

Schneider, A., 1987. Eruptive processes, mineralization and isotopic evolution of the Los Frailes-Kari Kari region, Bolivia. *Revista Geológica de Chile*, v. 30, p. 27-33.

Schneider, A., & Halls, C., 1985. Chronology of eruptive processes and mineralization of the Frailes - Kari volcanic field, Eastern Cordillera, Bolivia. *Comunicaciones*, Departamento de Geología, University of Chile, Santiago, v. 35, p. 217-224.

Sillitoe, R. H., Halls, C. & Grant, J. N., 1975. Porphyry tin deposits in Bolivia. *Economic Geology*, Vol. 70, p. 913-927.

Sugaki, A., Ueno, H., Shimada, N., Kitakaze, A., Hayashi, K., Shima, H., Sanjines, O. & Saavedra, A., 1981a. Geological study on polymetallic ore deposits in the Oruro district, Bolivia. *Science Reports of the Tohoku University*, Series III, Vol. 15, p. 1-52.

Sugaki, A., Ueno, H. & Saavedra, A., 1981b. Mineralization and Mineral Zoning in the Avicaya and Bolivar Mining District, Bolivia. *Science Reports of the Tohoku University*, Series III, Vol. **15**, p. 53-64.

Sugaki, A., Ueno, H., Shimada, N., Kusachi, I., Kitakaze, A., Hayashi, K., Kojima, S. & Sanjines, O., 1983.

Geological study on the polymetallic ore deposits in the Potosi district, Bolivia. *Science Reports of the Tohoku University*, Series III, Vol. 15, p. 409- 460.

Sugaki, A., Shimada, N., Ueno, H. & Kano, S., 2003. K-Ar Ages of Tin-Polymetallic Mineralization in the Oruro Mining District, Central Bolivian Tin Belt. *Resource Geology*, Vol. **53**, p. 273-282.

*Summary of Mobile Mining Equipment - Aug 2021* - Microsoft Excel Worksheet (.xlsx) – Provided by Olaf Miejer. Lists mine mobile Production equipment for all subject mines with make, model, model year, operational hours.

Zartman, R.E., & Cunningham, C.G., 1995. U-Th-Pb zircon dating of the 13.8 Ma dacite volcanic dome at Cerro Rico de Potosi, Bolivia. Earth and Planetary Science Letters, v. 133, p. 227-237.

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28 UNITS OF MEASURE, ABBREVIATIONS, ACRONYMS, AND GLOSSARY OF SPANISH TERMS

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| &nbsp;&nbsp;**Description** |
| &nbsp;&nbsp;degree |
| $&nbsp;&nbsp;United States Dollars |
| &nbsp;&nbsp;One Million United States Dollars |
| &nbsp;&nbsp;degrees Celsius |
| &nbsp;&nbsp;micrometres |
| &nbsp;&nbsp;three-dimensions |
| &nbsp;&nbsp;annum (year) |
| &nbsp;&nbsp;AutoCADTM, a commercially produced design software by Autodesk |
| &nbsp;&nbsp;silver |
| &nbsp;&nbsp;above mean sea level |
| &nbsp;&nbsp;gold |
| &nbsp;&nbsp;bismuth |
| &nbsp;&nbsp;calcium |
| &nbsp;&nbsp;Capital expense |
| &nbsp;&nbsp;cubic feet per minute |
| &nbsp;&nbsp;Canadian Institute of Mining, Metallurgy and Petroleum |
| &nbsp;&nbsp;centimetre |
| &nbsp;&nbsp;square centimetre |
| &nbsp;&nbsp;cubic centimetre |
| &nbsp;&nbsp;Canadian Imperial Bank of Commerce |
| &nbsp;&nbsp;Corporate income tax |
| &nbsp;&nbsp;Bolivian Government owned mining company; joint venture partner to Santacruz through the Illapa JV |
| &nbsp;&nbsp;Quality Assurance (for tailings disposal) |
| &nbsp;&nbsp;Quality control management (for tailings disposal) |
| &nbsp;&nbsp;copper |
| &nbsp;&nbsp;Coefficient of Variation |
| &nbsp;&nbsp;Declaration of Environmental Adequacy |
| &nbsp;&nbsp;Dry metric tonnes |
| &nbsp;&nbsp;East |
| &nbsp;&nbsp;Earnings before interest and taxes |
| &nbsp;&nbsp;Environmental Impact Assessment |
| &nbsp;&nbsp;National Electricity Company (Bolivia) |

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| **Symbol / Abbreviation** | &nbsp;&nbsp;**Description** |
| ft3 | &nbsp;&nbsp;cubic foot |
| g | &nbsp;&nbsp;gram |
| G&A | &nbsp;&nbsp;general and administrative |
| g/t | &nbsp;&nbsp;grams per tonne |
| hp | &nbsp;&nbsp;horsepower |
| HSEC | &nbsp;&nbsp;health, safety, environment and community |
| IDW | &nbsp;&nbsp;Inverse distance weighting |
| JDS | &nbsp;&nbsp;JDS Energy & Mining Inc. |
| JORC | &nbsp;&nbsp;Australasian Joint Ore Reserves Committee |
| JV | &nbsp;&nbsp;Joint venture |
| kg | &nbsp;&nbsp;kilogram |
| km | &nbsp;&nbsp;kilometre |
| km/h | &nbsp;&nbsp;kilometres per hour |
| kPa | &nbsp;&nbsp;kilopascal |
| kt | &nbsp;&nbsp;kilotonne |
| kV | &nbsp;&nbsp;kilovolt |
| kVA | &nbsp;&nbsp;kilovolt-ampere |
| kW | &nbsp;&nbsp;kilowatt |
| L | &nbsp;&nbsp;litre |
| L/min | &nbsp;&nbsp;litres per minute |
| L/s | &nbsp;&nbsp;litres per second |
| LOM | &nbsp;&nbsp;life of mine |
| m | &nbsp;&nbsp;metre |
| M | &nbsp;&nbsp;million |
| Ma | &nbsp;&nbsp;million years |
| masl | &nbsp;&nbsp;metres above sea level |
| mm | &nbsp;&nbsp;millimetre |
| Mm3 | &nbsp;&nbsp;Millions of cubic metres |
| MPa | &nbsp;&nbsp;megapascal |
| Mt | &nbsp;&nbsp;million metric tonnes |
| MW | &nbsp;&nbsp;megawatt |
| N | &nbsp;&nbsp;north |
| NI 43-101 | &nbsp;&nbsp;National Instrument 43-101 |
| NSR | &nbsp;&nbsp;net smelter return |
| OPEX | &nbsp;&nbsp;Operating cost |
| oz | &nbsp;&nbsp;troy ounce |
| OK | &nbsp;&nbsp;Ordinary kriging |

---

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 28-2

---

| | |
|:---|:---|
| ![](logo_001.jpg) | ![](ex99-30_020.jpg) |

---

---

| | |
|:---|:---|
| **Symbol / Abbreviation** | &nbsp;&nbsp;**Description** |
| P.Eng. | &nbsp;&nbsp;Professional engineer (a Canadian designation) |
| P.Geo. | &nbsp;&nbsp;Professional Geologist (a Canadian designation) |
| Pb | &nbsp;&nbsp;lead |
| ppm | &nbsp;&nbsp;parts per million |
| PVC | &nbsp;&nbsp;Polymerization of vinyl chloride (a plastic) |
| QA/QC | &nbsp;&nbsp;quality assurance/quality control |
| QP | &nbsp;&nbsp;qualified person |
| RMR | &nbsp;&nbsp;rock mass rating |
| S | &nbsp;&nbsp;South |
| SAG | &nbsp;&nbsp;Semi-autogenous grinding |
| SAMREC | &nbsp;&nbsp;South African Code for the Reporting of Exploration Results |
| Sb | &nbsp;&nbsp;Antimony |
| SDG | &nbsp;&nbsp;Sustainable development goals |
| SG | &nbsp;&nbsp;specific gravity |
| Sn | &nbsp;&nbsp;selenium |
| t | &nbsp;&nbsp;metric tonne |
| t/d | &nbsp;&nbsp;tonnes per day |
| t/m3 | &nbsp;&nbsp;Tonnes per cubic metre |
| TSF | &nbsp;&nbsp;tailings storage facility |
| UTM | &nbsp;&nbsp;universal transverse mercator |
| V | &nbsp;&nbsp;volt |
| W | &nbsp;&nbsp;west |
| Zn | &nbsp;&nbsp;zinc |
| ZnEq | &nbsp;&nbsp;Zinc equivalent (other payable metal values have been converted to the same value of zinc metal) |

---

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 28-3

---

| | |
|:---|:---|
| ![](logo_001.jpg) | ![](ex99-30_020.jpg) |

---

---

| | |
|:---|:---|
| **Glossary** | **Glossary** |
| **Spanish Term** | &nbsp;&nbsp;**English Translation** |
| 1er | &nbsp;&nbsp;primary |
| 2do | &nbsp;&nbsp;secondary |
| Acceso | &nbsp;&nbsp;Sublevel access |
| Aire limpio | &nbsp;&nbsp;Fresh air |
| Aire viciado | &nbsp;&nbsp;Exhaust |
| Altura de banco | &nbsp;&nbsp;Bench height |
| Ancho | &nbsp;&nbsp;Width |

---

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 28-4

---

| | |
|:---|:---|
| ![](logo_001.jpg) | ![](ex99-30_020.jpg) |

---

---

| | |
|:---|:---|
| **Glossary** | **Glossary** |
| **Spanish Term** | &nbsp;&nbsp;**English Translation** |
| Ángulo | &nbsp;&nbsp;Dip |
| Bomba estacionaria | &nbsp;&nbsp;Stationary pump |
| Bomba sumergible | &nbsp;&nbsp;Submersible pump |
| Bombeo | &nbsp;&nbsp;pumping |
| Buzon | &nbsp;&nbsp;Ore bin |
| Cara libre | &nbsp;&nbsp;Free face |
| Chimenea | &nbsp;&nbsp;Raise |
| Chimenea de ventilacion | &nbsp;&nbsp;Ventilation raise |
| Circuito | &nbsp;&nbsp;circuit |
| Desarollos | &nbsp;&nbsp;Development |
| Dique de colas | &nbsp;&nbsp;TSF |
| Direccion de tumbe | &nbsp;&nbsp;Ore mining direction |
| Etapa | &nbsp;&nbsp;Stage |
| Exploración | &nbsp;&nbsp;Exploration |
| Filtracion | &nbsp;&nbsp;filtration |
| Flotacion | &nbsp;&nbsp;flotation |
| Flujograma | &nbsp;&nbsp;Flowsheet |
| Galería | &nbsp;&nbsp;Drift (gallery), classified as Superior (main) and Inferior (secondary) |
| Ingeniera | &nbsp;&nbsp;Engineering |
| Ingreso rampa | &nbsp;&nbsp;Portal |
| Mantenimiento | &nbsp;&nbsp;Maintenance |
| Media ambiente | &nbsp;&nbsp;environment |
| Mina | &nbsp;&nbsp;mine |
| Nivel | &nbsp;&nbsp;Level |
| Perforación | &nbsp;&nbsp;drilling |
| Planta Concentradora | &nbsp;&nbsp;Processing Plant |
| Plomo | &nbsp;&nbsp;lead |
| Puente | &nbsp;&nbsp;Pillar |
| Red de bombeo | &nbsp;&nbsp;Pumping system |
| Relleno | &nbsp;&nbsp;Backfill |
| Seccion longitudinal | &nbsp;&nbsp;Long section |
| Seccion transversal | &nbsp;&nbsp;Cross section |
| Seguridad | &nbsp;&nbsp;Security |
| Sistema | &nbsp;&nbsp;System |

---

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 28-5

---

| | |
|:---|:---|
| ![](logo_001.jpg) | ![](ex99-30_020.jpg) |

---

---

| | |
|:---|:---|
| **Glossary** | **Glossary** |
| **Spanish Term** | &nbsp;&nbsp;**English Translation** |
| Subnivel | &nbsp;&nbsp;Sublevel |
| Subnivel de relleno | &nbsp;&nbsp;Backfill drift |
| Taladros | &nbsp;&nbsp;Drillholes |
| Taza de bombeo | &nbsp;&nbsp;Water storage pond |
| Ventilador | &nbsp;&nbsp;Fan |
| Veta | &nbsp;&nbsp;Vein |
| Zonas explotadas | &nbsp;&nbsp;Mined zones |

---

PORCO MINING OPERATIONS \| NI 43-101 TECHNICAL REPORT PAGE 28-6

## Exhibit 99.31

**Exhibit 99.31** 

**CERTIFICATE OF QUALIFIED PERSON**

**Shane Tad Crowie, P. Eng.**

JDS Energy & Mining Inc.

900 - 999 W Hastings Street

Vancouver, British Columbia, V6C 1M3

I, Shane Tad Crowie, P. Eng., do hereby certify that:

---

| | |
|:---|:---|
| 1. | This certificate applies to the technical report entitled "NI 43-101 Technical Report on the Advanced Project, Caballo Blanco Mining Operations, near Potosi, Bolivia" with an effective date of January 1, 2024 (the "**Technical Report**") prepared for Santacruz Silver Mining Ltd. (the "**Issuer**"); |
| 2. | I am employed as a Senior Metallurgist with JDS Energy and Mining with an office at Suite 900 – 999 West Hastings Street, Vancouver, British Columbia, V6C 2W2; |
| 3. | I am a graduate of the University of British Columbia in 2001, with a B.A.Sc. in Mining and Mineral Process Engineering. I have practiced my profession continuously since 2001. |
|  | I have been involved with various mining projects and studies; where I have performed, technical, operations and management positions at mines in Canada. I have been responsible for recovery optimization projects, capital improvement projects, budgeting, planning and pilot plant operations. I also have been responsible for writing technical reports, managing metallurgical testwork, and performing due diligence audits on mines and development properties; |
| 4. | I am a Registered Professional Engineer in British Columbia (#34052); |
| 5. | I have read the definition of "qualified person" set out in National Instrument 43-101 ("**NI 43-101**") and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI 43-101; |
| 6. | I visited the Caballo Blanco Project from August 10-13, 2021; |
| 7. | I am responsible for Sections 1.6, 1.10, 13, 17, and 26 of the Technical Report; |
| 8. | I am independent of the Issuer as independence is described in Section 1.5 of NI 43-101; |
| 9. | I have had prior involvement with the company and the property as author of the technical report entitled "NI 43-101 Technical Report, Caballo Blanco, Potosi, Bolivia" dated December 21; |
| 10. | I have read NI 43-101, and confirm that the parts of the Technical Report that I am responsible for have been prepared in compliance with NI 43-101; and |
| 11. | As of the effective date of the Technical Report, to the best of my knowledge, information and belief, the parts of the Technical Report that I am responsible for preparing contain all scientific and technical information that is required to be disclosed to make the Technical Report not misleading. |

---

---

| |
|:---|
| *"Shane Tad Crowie"*<br>|
| **Shane Tad Crowie, P.Eng** |
| Dated: August 21, 2024 |

---

## Exhibit 99.32

**Exhibit 99.32** 

**CONSENT of QUALIFIED PERSON**

**Garth David Kirkham, P.Geo.**

Kirkham Geosystems Ltd.

6331 Palace Place

Burnaby, British Columbia, V6E 1Z6

I, Garth David Kirkham, P. Geo., consent to the public filing of the technical report titled "*NI 43-101 Technical Report on the Advanced Project, Bolivar Mining Operations, Atequera, Bolivia*" that has an effective date of January 1, 2024 (the **"Technical Report"**) by Santacruz Silver Mining Ltd. (the **"Company"**).

I also consent to any extracts from, or a summary of, the Technical Report in the Company's news release dated August 21, 2024, entitled "Santacruz Silver Verifies Mineral Resources and Reserves at its Producing Mines" (the **"News Release"**).

I certify that I have read the News Release being filed by the Company and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.

Dated this August 21, 2024.

<u>*"Garth David Kirkham"*</u> <br> Garth David Kirkham, P. Geo.

## Exhibit 99.33

**Exhibit 99.33** 

---

| | | |
|:---|:---|:---|
| **Kirkham** Geosystems Ltd. | | |
|  | 6331 Palace Place<br>Burnaby, B.C.<br>V5E 1Z6 | Phone: (604) 529-1070<br> gdkirkham@shaw.ca |

---

**CERTIFICATE OF AUTHOR**

I, Garth David Kirkham, P.Geo., do hereby certify that:

1) I am a consulting geoscientist and Principal of Kirkham Geosystems Ltd. since 1987 with an office at 6331 Palace Place, Burnaby, British Columbia.

2) This certificate applies to the technical report entitled "NI 43-101 Technical Report on the Advanced Project, Bolivar Mining Operations, Atequera, Bolivia" with an effective date of January 1, 2024 (the "**Technical Report**") prepared for Santacruz Silver Mining Ltd. (the **"Issuer")**.

3) I am a graduate of the University of Alberta in 1983 with a B. Sc. I have continuously practiced my profession since 1988. I have authored many resource estimations and NI 43-101 technical reports including Cerro Blanco Epithermal Au-Ag, Cerro Las Minitas Ag-Zn-Pb-Au-Cu, Avino Ag-Zn-Pb and Debarwa, and Kutcho Creek poly-metallic deposits.

4) I am a member in good standing of the Engineers and Geoscientists of British Columbia (#30043).

5) I have visited the property on August 10-13, 2021 and March 15-30, 2023.

6) In the Technical Report, I am responsible for sections 1.3 to 1.5, 1.7, 6.2, 7 to 11, 12.2, 14 and 27.

7) I have had prior involvement with the Issuer and the property as author of the technical report entitled "NI 43-101 Technical Report, Bolivar Project, Oruro State, Bolivia" dated December 21, 2021.

8) I am independent of Santacruz Silver Mining Ltd. as defined in Section 1.5 of National Instrument 43-101.

9) I have read the definition of "qualified person" set out in National Instrument 43-101 and certify that by reason of education, experience, independence and affiliation with a professional association, I fulfil the requirements of a Qualified Person as defined in National Instrument 43-101.

10) I am not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the Technical Report and that this Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

11) I have read the Technical Report, National Instrument 43-101- Standards for Disclosure of Mineral Projects and Form 43-101F1. This Technical Report has been prepared in compliance with that instrument and form.

Effective Date: 01 January 2024

Signed Date: 21 August 2024

 

---

| | |
|:---|:---|
| ***(original signed and sealed) "Garth Kirkham, P.Geo."*** | |
| Garth Kirkham, P.Geo. |  |
| Kirkham Geosystems Ltd. |  |

---

## Exhibit 99.34

**Exhibit 99.34** 

**CERTIFICATE OF QUALIFIED PERSON**

**Shane Tad Crowie, P. Eng.**

JDS Energy & Mining Inc.

900 - 999 W Hastings Street

Vancouver, British Columbia, V6C 1M3

I, Shane Tad Crowie, P. Eng., do hereby certify that:

1. This
 certificate applies to the technical report entitled "NI 43-101 Technical Report on
 the Advanced Project, Porco Mining Operations, Antonio Quijarro Province, Bolivia"
 with an effective date of January 1, 2024 (the "**Technical Report**") prepared
 for Santacruz Silver Mining Ltd. (the "**Issuer** ");

2. I
 am employed as a Senior Metallurgist with JDS Energy and Mining with an office at Suite 900
 – 999 West Hastings Street, Vancouver, British Columbia, V6C 2W2;

3. I
 am a graduate of the University of British Columbia in 2001, with a B.A.Sc. in Mining and
 Mineral Process Engineering. I have practiced my profession continuously since 2001.

I have been involved with various mining projects and studies; where I have performed, technical, operations and management positions at mines in Canada. I have been responsible for recovery optimization projects, capital improvement projects, budgeting, planning and pilot plant operations. I also have been responsible for writing technical reports, managing metallurgical testwork, and performing due diligence audits on mines and development properties;

4. I
 am a Registered Professional Engineer in British Columbia (#34052);

5. I
 have read the definition of "qualified person" set out in National Instrument
 43-101 ()"**NI 43-101**") and certify that by reason of my education, affiliation
 with a professional association (as defined in NI 43-101) and past relevant work experience,
 I fulfill the requirements to be a "qualified person" for the purposes of NI
 43-101;

6. I
 visited the Porco Project from August 10-13, 2021 ;

7. I
 am responsible for Sections 1.6, 1.10, 13, 17, and 26 of the Technical Report ;

8. I
 am independent of the Issuer as independence is described in Section 1.5 of NI 43- 101;

9. I
 have had prior involvement with the company and the property and author of the technical
 report entitled "NI43-101 Technical Report, Porco Project, Potosi, Bolivia" dated
 December 21, 2021;

10. I
 have read NI 43-101, and confirm that the parts of the Technical Report that I am responsible
 for have been prepared in compliance with NI 43-101; and

11. As
 of the effective date of the Technical Report, to the best of my knowledge, information and
 belief, the parts of the Technical Report that I am responsible for preparing contain all
 scientific and technical information that is required to be disclosed to make the Technical
 Report not misleading.

---

| |
|:---|
| *"Shane Tad Crowie"* |
| **Shane Tad Crowie, P.Eng** |
| Dated: August 21, 2024 |

---

## Exhibit 99.35

**Exhibit 99.35** 

**CONSENT of QUALIFIED PERSON**

**Garth David Kirkham, P.Geo.**

Kirkham Geosystems Ltd.

6331 Palace Place

Burnaby, British Columbia, V6E 1Z6

I, Garth David Kirkham, P. Geo., consent to the public filing of the technical report titled "*NI 43-101 Technical Report on the Advanced Project, Caballo Blanco Mining Operations, near Potosi, Bolivia*" that has an effective date of January 1, 2024 (the **"Technical Report"**) by Santacruz Silver Mining Ltd. (the **"Company"**).

I also consent to any extracts from, or a summary of, the Technical Report in the Company's news release dated August 21, 2024, entitled "Santacruz Silver Verifies Mineral Resources and Reserves at its Producing Mines" (the **"News Release"**).

I certify that I have read the News Release being filed by the Company and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.

Dated this August 21, 2024.

<u>*"Garth David Kirkham"*</u> <br> Garth David Kirkham, P.Geo.

## Exhibit 99.36

**Exhibit 99.36** 

**CONSENT of QUALIFIED PERSON**

**Garth David Kirkham, P.Geo.**

Kirkham Geosystems Ltd.

6331 Palace Place

Burnaby, British Columbia, V6E 1Z6

I, Garth David Kirkham, P. Geo., consent to the public filing of the technical report titled "*NI 43-101 Technical Report on the Advanced Project, Porco Mining Operations, Antonio Quijarro Province, Bolivia*" that has an effective date of January 1, 2024 (the **"Technical Report"**) by Santacruz Silver Mining Ltd. (the **"Company"**).

I also consent to any extracts from, or a summary of, the Technical Report in the Company's news release dated August 21, 2024, entitled "Santacruz Silver Verifies Mineral Resources and Reserves at its Producing Mines" (the **"News Release"**).

I certify that I have read the News Release being filed by the Company and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.

Dated this August 21, 2024.

<u>*"Garth David Kirkham"*</u> <br> Garth David Kirkham, P. Geo.

## Exhibit 99.37

**Exhibit 99.37** 

**CERTIFICATE OF QUALIFIED PERSON**

**Richard Mervin Goodwin, P. Eng.**

JDS Energy & Mining Inc.

900 - 999 W Hastings Street

Vancouver, British Columbia, V6C 1M3

I, Richard Mervin Goodwin, P. Eng., do hereby certify that:

1. This
 certificate applies to the technical report entitled "NI 43-101 Technical Report on
 the Advanced Project, Bolivar Mining Operations, Atequera, Bolivia" with an effective
 date of January 1, 2024 (the "**Technical Report**") prepared for Santacruz
 Silver Mining Ltd. (the "**Issuer** ");

2. I
 am employed as a Project Manager with JDS Energy & Mining Inc.;

3. I
 am a graduate of the University of British Columbia, with a Bachelor of Applied Science,
 Mining and Mineral Process Engineering, 1984. I have practiced my profession continuously
 since 1984;

I have spent the last 40 years working on mining operations and projects; where I have performed Project Management, Study Management, Mine Engineering, Executive Management, and consulting for mining operations and projects, including underground narrow vein, base metal and precious metal deposits, and have done extensive work on projects in Latin America;

4. I
 am a Registered Professional Engineer in British Columbia (#108470), Yukon (#1472) and NWT
 and Nunavut (#4089);

5. I
 have read the definition of "qualified person" set out in National Instrument 43-101
 ()"**NI 43-101**") and certify that by reason of my education, affiliation
 with a professional association (as defined in NI 43-101) and past relevant work experience,
 I fulfill the requirements to be a "qualified person" for the purposes of NI 43-101;

6. I
 visited the Bolivar Project on January 27, 2023;

7. I
 am responsible for Sections 1.1, 1.2, 1.8, 1.9, 1.11, 1.12, 1.13, 1.14, 1.15, 2, 3, 4, 5,
 6.1, 12.1, 12.3, 12.5, 15, 16, 18, 19, 20, 21, 22, 23, 24, 25 and 26 of the Technical Report;

8. I
 am independent of the Issuer as independence is described in Section 1.5 of NI 43-101;

9. I
 have had no prior involvement with the Bolivar Project;

10. I
 have read NI 43-101, and confirm that the parts of the Technical Report that I am responsible
 for have been prepared in compliance with NI 43-101; and

11. As
 of the effective date of the Technical Report, to the best of my knowledge, information and
 belief, the parts of the Technical Report that I am responsible for preparing contain all
 scientific and technical information that is required to be disclosed to make the Technical
 Report not misleading.

---

| |
|:---|
| *"Richard Mervie Goodwin"* |
| **Richard Mervin Goodwin, P.Eng** |
| Dated: August 21, 2024 |

---

## Exhibit 99.38

**Exhibit 99.38** 

**CONSENT of QUALIFIED PERSON**

**Richard Mervin Goodwin, P. Eng.**

JDS Energy & Mining Inc.

900 - 999 W Hastings Street

Vancouver, British Columbia, V6C 1M3

I, Richard Mervin Goodwin, P. Eng., consent to the public filing of the technical report titled "*NI 43-101 Technical Report on the Advanced Project, Bolivar Mining Operations, Atequera, Bolivia*" that has an effective date of January 1, 2024 (the **"Technical Report"**) by Santacruz Silver Mining Ltd. (the **"Company"**).

I also consent to any extracts from, or a summary of, the Technical Report in the Company's news release dated August 21, 2024, entitled "Santacruz Silver Verifies Mineral Resources and Reserves at its Producing Mines" (the **"News Release"**).

I certify that I have read the News Release being filed by the Company and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.

---

| |
|:---|
| Dated this August 21, 2024. |
| *"Richard Mervin Goodwin"* |
| Richard Mervin Goodwin, P. Eng. |

---

## Exhibit 99.39

**Exhibit 99.39** 

**CERTIFICATE OF QUALIFIED PERSON**

**Richard Mervin Goodwin, P. Eng.**

JDS Energy & Mining Inc.

900 - 999 W Hastings Street

Vancouver, British Columbia, V6C 1M3

I, Richard Mervin Goodwin, P. Eng., do hereby certify that:

1. This
 certificate applies to the technical report entitled "NI 43-101 Technical Report on
 the Advanced Project, Caballo Blanco Mining Operations, near Potosi, Bolivia" with
 an effective date of January 1, 2024 (the "**Technical Report**") prepared
 for Santacruz Silver Mining Ltd. (the "**Issuer** ");

2. I
 am employed as a Project Manager with JDS Energy & Mining Inc.;

3. I
 am a graduate of the University of British Columbia, with a Bachelor of Applied Science,
 Mining and Mineral Process Engineering, 1984. I have practiced my profession continuously
 since 1984;

I have spent the last 40 years working on mining operations and projects; where I have performed Project Management, Study Management, Mine Engineering, Executive Management, and consulting for mining operations and projects, including underground narrow vein, base metal and precious metal deposits, and have done extensive work on projects in Latin America;

4. I
 am a Registered Professional Engineer in British Columbia (#108470), Yukon (#1472) and NWT
 and Nunavut (#4089);

5. I
 have read the definition of "qualified person" set out in National Instrument
 43-101 ()"**NI 43-101**") and certify that by reason of my education, affiliation
 with a professional association (as defined in NI 43-101) and past relevant work experience,
 I fulfill the requirements to be a "qualified person" for the purposes of NI
 43-101;

6. I
 visited the Caballo Blanco Project from January 30 to January 31, 2023;

7. I
 am responsible for Sections 1.1, 1.2, 1.8, 1.9, 1.11, 1.12, 1.13, 1.14, 1.15, 2, 3, 4, 5,
 6.1, 12.1, 12.3, 12.5, 15, 16, 18, 19, 20, 21, 22, 23, 24, 25, 26 and 28 of the Technical
 Report;

8. I
 am independent of the Issuer as independence is described in Section 1.5 of NI 43-101;

9. I
 have had no prior involvement with the Caballo Blanco Project;

10. I
 have read NI 43-101, and confirm that the parts of the Technical Report that I am responsible
 for have been prepared in compliance with NI 43-101; and

11. As
 of the effective date of the Technical Report, to the best of my knowledge, information and
 belief, the parts of the Technical Report that I am responsible for preparing contain all
 scientific and technical information that is required to be disclosed to make the Technical
 Report not misleading.

---

| |
|:---|
| *"Richard Mervin Goodwin"* |
| **Richard Mervin Goodwin, P.Eng** |
| Dated: August 21, 2024 |

---

## Exhibit 99.40

**Exhibit 99.40** 

**CERTIFICATE OF QUALIFIED PERSON**

**Richard Mervin Goodwin, P. Eng.**

JDS Energy & Mining Inc.

900 - 999 W Hastings Street

Vancouver, British Columbia, V6C 1M3

I, Richard Mervin Goodwin, P. Eng., do hereby certify that:

1. This
 certificate applies to the technical report entitled "NI 43-101 Technical Report on
 the Advanced Project, Porco Mining Operations, Antonio Quijarro Province, Bolivia"
 with an effective date of January 1, 2024 (the "**Technical Report**") prepared
 for Santacruz Silver Mining Ltd. (the "**Issuer** ");

2. I
 am employed as a Project Manager with JDS Energy & Mining Inc.;

3. I
 am a graduate of the University of British Columbia, with a Bachelor of Applied Science,
 Mining and Mineral Process Engineering, 1984. I have practiced my profession continuously
 since 1984;

I have spent the last 40 years working on mining operations and projects; where I have performed Project Management, Study Management, Mine Engineering, Executive Management, and consulting for mining operations and projects, including underground narrow vein, base metal and precious metal deposits, and have done extensive work on projects in Latin America;

4. I
 am a Registered Professional Engineer in British Columbia (#108470), Yukon (#1472) and NWT
 and Nunavut (#4089);

5. I
 have read the definition of "qualified person" set out in National Instrument
 43-101 ()"**NI 43-101**") and certify that by reason of my education, affiliation
 with a professional association (as defined in NI 43-101) and past relevant work experience,
 I fulfill the requirements to be a "qualified person" for the purposes of NI
 43-101;

6. I
 visited the Porco Project from January 28 to January 30, 2023;

7. I
 am responsible for Sections 1.1, 1.2, 1.8, 1.9, 1.11, 1.12, 1.13, 1.14, 1.15, 2, 3, 4, 5,
 6.1, 12.1, 12.3, 12.5, 15, 16, 18, 19, 20, 21, 22, 23, 24, 25, 26 and 28 of the Technical
 Report;

8. I
 am independent of the Issuer as independence is described in Section 1.5 of NI 43-101;

9. I
 have had no prior involvement with the Porco Project;

10. I
 have read NI 43-101, and confirm that the parts of the Technical Report that I am responsible
 for have been prepared in compliance with NI 43-101; and

11. As
 of the effective date of the Technical Report, to the best of my knowledge, information and
 belief, the parts of the Technical Report that I am responsible for preparing contain all
 scientific and technical information that is required to be disclosed to make the Technical
 Report not misleading.

---

| |
|:---|
| *"Richard Mervin Goodwin"* |
| **Richard Mervin Goodwin, P.Eng** |
| Dated: August 21, 2024 |

---

## Exhibit 99.41

**Exhibit 99.41** 

**CONSENT of QUALIFIED PERSON**

**Richard Mervin Goodwin, P. Eng.**

JDS Energy & Mining Inc.

900 - 999 W Hastings Street

Vancouver, British Columbia, V6C 1M3

I, Richard Mervin Goodwin, P. Eng., consent to the public filing of the technical report titled "*NI 43-101 Technical Report on the Advanced Project, Caballo Blanco Mining Operations, near Potosi, Bolivia*" that has an effective date of January 1, 2024 (the **"Technical Report"**) by Santacruz Silver Mining Ltd. (the **"Company"**).

I also consent to any extracts from, or a summary of, the Technical Report in the Company's news release dated August 21, 2024, entitled "Santacruz Silver Verifies Mineral Resources and Reserves at its Producing Mines" (the **"News Release"**).

I certify that I have read the News Release being filed by the Company and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.

---

| |
|:---|
| Dated this August 21, 2024. |
| *"Richard Mervin Goodwin"* |
| Richard Mervin Goodwin, P. Eng. |

---

## Exhibit 99.42

**Exhibit 99.42** 

**CONSENT of QUALIFIED PERSON**

**Richard Mervin Goodwin, P. Eng.**

JDS Energy & Mining Inc.

900 - 999 W Hastings Street

Vancouver, British Columbia, V6C 1M3

I, Richard Mervin Goodwin, P. Eng., consent to the public filing of the technical report titled "*NI 43-101 Technical Report on the Advanced Project, Porco Mining Operations, Antonio Quijarro Province, Bolivia*" that has an effective date of January 1, 2024 (the **"Technical Report"**) by Santacruz Silver Mining Ltd. (the **"Company"**).

I also consent to any extracts from, or a summary of, the Technical Report in the Company's news release dated August 21, 2024, entitled "Santacruz Silver Verifies Mineral Resources and Reserves at its Producing Mines" (the **"News Release"**).

I certify that I have read the News Release being filed by the Company and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.

Dated this August 21, 2024.

<u>*"Richard Mervin Goodwin"*</u> <br> Richard Mervin Goodwin, P. Eng.

## Exhibit 99.43

**Exhibit 99.43** 

**CONSENT of QUALIFIED PERSON**

**Shane Tad Crowie, P. Eng.**

JDS Energy & Mining Inc.

900 - 999 W Hastings Street

Vancouver, British Columbia, V6C 1M3

I, Shane Tad Crowie, P. Eng., consent to the public filing of the technical report titled "*NI 43-101 Technical Report on the Advanced Project, Bolivar Mining Operations, Atequera, Bolivia*" that has an effective date of January 1, 2024 (the **"Technical Report"**) by Santacruz Silver Mining Ltd. (the **"Company"**).

I also consent to any extracts from, or a summary of, the Technical Report in the Company's news release dated August 21, 2024, entitled "Santacruz Silver Verifies Mineral Resources and Reserves at its Producing Mines" (the **"News Release"**).

I certify that I have read the News Release being filed by the Company and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.

Dated this August 21, 2024.

<u>*"Shane Tad Crowie"*</u> <br> Shane Tad Crowie, P. Eng.

## Exhibit 99.44

**Exhibit 99.44** 

**CONSENT of QUALIFIED PERSON**

**Shane Tad Crowie, P. Eng.**

JDS Energy & Mining Inc.

900 - 999 W Hastings Street

Vancouver, British Columbia, V6C 1M3

I, Shane Tad Crowie, P. Eng., consent to the public filing of the technical report titled "*NI 43-101 Technical Report on the Advanced Project, Caballo Blanco Mining Operations, near Potosi, Bolivia*" that has an effective date of January 1, 2024 (the **"Technical Report"**) by Santacruz Silver Mining Ltd. (the **"Company"**).

I also consent to any extracts from, or a summary of, the Technical Report in the Company's news release dated August 21, 2024, entitled "Santacruz Silver Verifies Mineral Resources and Reserves at its Producing Mines" (the **"News Release"**).

I certify that I have read the News Release being filed by the Company and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.

---

| |
|:---|
| Dated this August 21, 2024. |
| *"Shane Tad Crowie"* |
| Shane Tad Crowie, P. Eng. |

---

## Exhibit 99.45

**Exhibit 99.45** 

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| | | |
|:---|:---|:---|
| **Kirkham** Geosystems Ltd. | | |
|  | 6331 Palace Place<br> Burnaby, B.C.<br> V5E 1Z6 | Phone: (604) 529-1070<br> gdkirkham@shaw.ca |

---

**CERTIFICATE OF AUTHOR**

I, Garth David Kirkham, P.Geo., do hereby certify that:

1) I am a consulting geoscientist and Principal of Kirkham Geosystems Ltd. since 1987 with an office at 6331 Palace Place, Burnaby, British Columbia.

2) This certificate applies to the technical report entitled "NI 43-101 Technical Report on the Advanced Project, Caballo Blanco Mining Operations, near Potosi, Bolivia" with an effective date of January 1, 2024 (the "**Technical Report**") prepared for Santacruz Silver Mining Ltd. (the "**Issuer**").

3) I am a graduate of the University of Alberta in 1983 with a B. Sc. I have continuously practiced my profession since 1988. I have authored many resource estimations and NI 43-101 technical reports including Cerro Blanco Epithermal Au-Ag, Cerro Las Minitas Ag-Zn-Pb-Au-Cu, Avino Ag-Zn-Pb and Debarwa, and Kutcho Creek poly-metallic deposits.

4) I am a member in good standing of the Engineers and Geoscientists of British Columbia (#30043).

5) I have visited the property on August 10-13, 2021 and March 15-30, 2023.

6) In the Technical Report, I am responsible for sections 1.3 to 1.5, 1.7, 6.2, 7 to 11, 12.2, 9, 10, 11, 12.2, 14 and 27.

7) I have had prior involvement with the Issuer and the property as author of the technical report entitled "NI 43-101 Technical Report, Caballo Blanco, Potosi, Bolivia" dated December 21, 2021.

8) I am independent of Santacruz Silver Mining Ltd. as defined in Section 1.5 of National Instrument 43-101.

9) I have read the definition of "qualified person" set out in National Instrument 43-101 and certify that by reason of education, experience, independence and affiliation with a professional association, I fulfil the requirements of a Qualified Person as defined in National Instrument 43-101.

10) I am not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the Technical Report and that this Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

11) I have read the Technical Report, National Instrument 43-101- Standards for Disclosure of Mineral Projects and Form 43-101F1. This Technical Report has been prepared in compliance with that instrument and form.

Effective Date: 01 January 2024

Signed Date: 21 August 2024

 

---

| | |
|:---|:---|
| ***(original signed and sealed) "Garth Kirkham, P.Geo."*** | |
| Garth Kirkham, P.Geo. |  |
| Kirkham Geosystems Ltd. |  |

---

## Exhibit 99.46

**Exhibit 99.46** 

**CONSENT of QUALIFIED PERSON**

**Shane Tad Crowie, P. Eng.**

JDS Energy & Mining Inc.

900 - 999 W Hastings Street

Vancouver, British Columbia, V6C 1M3

I, Shane Tad Crowie, P. Eng., consent to the public filing of the technical report titled "*NI 43-101 Technical Report on the Advanced Project, Porco Mining Operations, Antonio Quijarro Province, Bolivia*" that has an effective date of January 1, 2024 (the **"Technical Report"**) by Santacruz Silver Mining Ltd. (the **"Company"**).

I also consent to any extracts from, or a summary of, the Technical Report in the Company's news release dated August 21, 2024, entitled "Santacruz Silver Verifies Mineral Resources and Reserves at its Producing Mines" (the **"News Release"**).

I certify that I have read the News Release being filed by the Company and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.

---

| |
|:---|
| Dated this August 21, 2024. |
| ***(Original signed) "Tad Crowie"*** |
| Shane Tad Crowie, P. Eng. |

---

## Exhibit 99.47

**Exhibit 99.47** 

**CERTIFICATE OF QUALIFIED PERSON**

**Shane Tad Crowie, P. Eng.**

JDS Energy & Mining Inc.

900 - 999 W Hastings Street

Vancouver, British Columbia, V6C 1M3

I, Shane Tad Crowie, P. Eng., do hereby certify that:

1. This
 certificate applies to the technical report entitled "NI 43-101 Technical Report on
 the Advanced Project, Bolivar Mining Operations, Atequera, Bolivia" with an effective
 date of January 1, 2024 (the "**Technical Report**") prepared for Santacruz
 Silver Mining Ltd. (the "**Issuer** ");

2. I
 am employed as a Senior Metallurgist with JDS Energy and Mining with an office at Suite 900
 – 999 West Hastings Street, Vancouver, British Columbia, V6C 2W2;

3. I
 am a graduate of the University of British Columbia in 2001, with a B.A.Sc. in Mining and
 Mineral Process Engineering. I have practiced my profession continuously since 2001.

I have been involved with various mining projects and studies; where I have performed, technical, operations and management positions at mines in Canada. I have been responsible for recovery optimization projects, capital improvement projects, budgeting, planning and pilot plant operations. I also have been responsible for writing technical reports, managing metallurgical testwork, and performing due diligence audits on mines and development properties;

4. I
 am a Registered Professional Engineer in British Columbia (#34052);

5. I
 have read the definition of "qualified person" set out in National Instrument
 43-101 ()"**NI 43-101**") and certify that by reason of my education, affiliation
 with a professional association (as defined in NI 43-101) and past relevant work experience,
 I fulfill the requirements to be a "qualified person" for the purposes of NI
 43-101;

6. I
 visited the Bolivar Project on August 10, 2021;

7. I
 am responsible for Sections 1.6, 1.10, 13, 17, and 26 of the Technical Report;

8. I
 am independent of the Issuer as independence is described in Section 1.5 of NI 43-101;

9. I
 have had prior involvement with the company and the property as author of the technical report
 entitled "NI43-101 Technical Report, Bolivar Project, Oruro State, Bolivia" dated
 December 21;

10. I
 have read NI 43-101, and confirm that the parts of the Technical Report that I am responsible
 for have been prepared in compliance with NI 43-101; and

11. As
 of the effective date of the Technical Report, to the best of my knowledge, information and
 belief, the parts of the Technical Report that I am responsible for preparing contain all
 scientific and technical information that is required to be disclosed to make the Technical
 Report not misleading.

---

| |
|:---|
| *"Shane Tad Crowie"* |
| **Shane Tad Crowie, P.Eng** |
| Dated: August 21, 2024 |

---

## Exhibit 99.48

**Exhibit 99.48** 

---

| | | |
|:---|:---|:---|
| **Kirkham** Geosystems Ltd. | | |
|  | 6331 Palace Place<br> Burnaby, B.C.<br> V5E 1Z6 | Phone: (604) 529-1070<br> gdkirkham@shaw.ca |

---

**CERTIFICATE OF AUTHOR**

I, Garth David Kirkham, P.Geo., do hereby certify that:

1) I am a consulting geoscientist and Principal of Kirkham Geosystems Ltd. since 1987 with an office at 6331 Palace Place, Burnaby, British Columbia.

2) This certificate applies to the technical report entitled "NI 43-101 Technical Report on the Advanced Project, Porco Mining Operations, Antonio Quijarro Province, Bolivia" with an effective date of January 1, 2024 (the "**Technical Report**") prepared for Santacruz Silver Mining Ltd. (the "**Issuer**").

3) I am a graduate of the University of Alberta in 1983 with a B. Sc. I have continuously practiced my profession since 1988. I have authored many resource estimations and NI 43-101 technical reports including Cerro Blanco Epithermal Au-Ag, Cerro Las Minitas Ag-Zn-Pb-Au-Cu, Avino Ag-Zn-Pb and Debarwa, and Kutcho Creek poly-metallic deposits.

4) I am a member in good standing of the Engineers and Geoscientists of British Columbia (#30043).

5) I have visited the property on August 10-13, 2021 and March 15-30, 2023.

6) In the Technical Report, I am responsible for sections 1.3 to 1.5, 1.7, 6.2, 7 to 11, 12.2, 14 and 27.

7) I have had prior involvement with the Issuer and the property as author of the technical report entitled "NI 43-101 Technical Report, Porco Project, Potosi, Bolivia" dated December 21, 2021.

8) I am independent of Santacruz Silver Mining Ltd. as defined in Section 1.5 of National Instrument 43-101.

9) I have read the definition of "qualified person" set out in National Instrument 43-101 and certify that by reason of education, experience, independence and affiliation with a professional association, I fulfil the requirements of a Qualified Person as defined in National Instrument 43-101.

10) I am not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the Technical Report and that this Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

11) I have read the Technical Report, National Instrument 43-101- Standards for Disclosure of Mineral Projects and Form 43-101F1. This Technical Report has been prepared in compliance with that instrument and form.

Effective Date: 01 January 2024

Signed Date: 21 August 2024

 

---

| |
|:---|
| ***(original signed and sealed) "Garth Kirkham, P.Geo."*** |
| Garth Kirkham, P.Geo. |
| Kirkham Geosystems Ltd. |

---