SALVADORA

TARGET: Gold-Copper Porphyry
LOCATION: 15km from El Salvador Copper & Gold Mine
SIZE: 8,796 Hectares
OWNERSHIP: 100%, No NSR's

HIGHLIGHTS:

• Potential to discover large bulk mineable copper – gold porphyry
• 15 km from world class billion tonne El Salvador copper-gold porphyry mine
• Geology is very similar to El Salvador mine
• Property has not been fully and systematically explored
• Previous exploration including drilling has returned encouraging copper grades
• Located at relatively low elevation and readily accessible year round

San Lorenzo owns 100% of the Salvadora Project which consists of 25 exploration concessions and 9 exploitation concessions totaling 8,796 hectares. The potential of the Salvadora Project is for a large, open pit copper – gold porphyry similar to the El Salvador Mine which is 15 km from the Salvadora Project. The El Salvador mine contains over 1.7 billion tonnes of ore, past production plus reserves, at +1.0% copper. The mine has been in production since 1956 and its infrastructure includes the Potrerillos copper smelter.

Salvadora is located approximately 25 km east of the village of Diego de Almagro which is located in the Province of Chañaral, III Region, Chile and lies approximately 15 km southwest of the El Salvador copper mine and 25 km west of the Potrerillos copper smelter. Year round access is via well maintained dirt roads from the village of Diego de Almagro and the nearby village of El Salvador.

The topography of the Salvadora Project consists of mostly hilly areas with steep valleys as well as flat plains in the extreme south. Elevations range from about 1400 to 2100m above sea level. Vegetation is sparse as the climate is desert.

The Salvadora Project area has a long history of mining and being located within the Atacama Desert, the Project area has no agrarian activities. From a mining prospective the area has water from the Quebrada del Salado (Rio de la Sal) a high tension power line experienced mining personnel in Diego de Almagro and El Salvador.

REGIONAL AND LOCAL GEOLOGY:

Salvadora lies approximately 15 kilometers southwest of the El Salvador porphyry copper-gold deposit within the El Salvador region, which occupies an important sector of the porphyry copper belt of northern Chile. Exploration and production from the El Salvador and Potrerillos deposits and other prospects in the area indicates that the porphyry copper systems of El Salvador region are enriched in gold (>0.1 g/t Au) relative to the typical Chilean molybdenum-rich (>0.02% Mo) porphyry copper deposits.

Salvadora is west of the Sierra Castillo fault, which represents the southern extension of a major fault system with which world class porphyry copper mines such as Chuquicamata, Escondida and Collahuasi are closely related. In the El Salvador region, the Sierra Castillo fault separates two lithotectonic domains with the western domain hosting the El Salvador porphyry copper district.

The porphyry systems in the El Salvador region are related to stocks emplaced during two discrete periods: 45 - 40 Ma (El Salvador, Serra Jardin) and 37 - 31 Ma (Exploradora, Maria Dalia, Potrerillos, Coya). Late Cretaceous to early Tertiary volcanic sequences west of the Sierra Castillo fault hosts the older systems. Most of the copper produced to date at El Salvador came from granodiorite porphyry stocks dated at 42 - 41 Ma. Hydrothermal alteration centred on these stocks is characterised by a central zone of potassic alteration with chalcopyrite-bornite mineralization, accompanied by anhydrite and magnetite, grading laterally and vertically into zones with higher sulphide contents associated with quartz-sericite alteration. The system is capped by a late-stage, pyrite-rich, advanced argillic zone, the roots of which are exposed in the higher parts of Cerro Indio Muerto, representing the basal remnants of a lithocap.

PROPERTY GEOLOGY:

Salvadora is situated within the western lithotectonic domain of the El Salvador region about 20-25 kilometers west of the Sierra Castillo fault. The Property covers a generally flat lying to gently northwest dipping sequence of stratified volcanic and volcano-clastic rocks of dominantly andesitic composition belonging to the Upper Cretaceous Llanta Formation. Locally Upper Cretaceous – Eocene sub-volcanic porphyritic stocks, plugs, sills and dykes of monzonitic, dacitic and rhyolitic composition intrude both the Llanta and El Salvador Formations. The more acid of these intrusive bodies are similar in character to the mineralizing porphyries of the El Salvador porphyry copper-gold deposits.

The Salvadora area has been worked by artisanal miners for generations and numerous old workings are present and the two largest workings on the property are Sin Codicia and Tres Amigos. The Felitz Retiro working, on the west/southwest side of the Salvadora Project, is associated with an arc of gold – copper veins similar to veins at Tres Amigos.

ALTERATION & MINERALIZATION:

The Salvador Property displays alteration characteristic of mineralized porphyry systems. Sericite and clay minerals are the most common alteration products associated with the mineralization itself while epidote is more commonly found proximal to the mineralized structures. Other alteration minerals include chlorite and carbonate. The picture on the right shows a leach cap at the Cerro Blanco zone with attendant chlorite.

The various old workings on the Property show mineralization composed of various oxides of iron and copper minerals such chrysocolla, brochantite, copper wad and copper pitch. They generally replace primary sulphides and are found in joints, fracture fillings, disseminations, veins, semi-massive patches and coatings. Primary mineralization consists of chalcopyrite, bornite, galena and sphalerite, in veins, veinlets, and sulphide patches, often associated with quartz, carbonate, and barite, as seen in the dump material of the deeper old mines. Pyrite and magnetite are also present.

PREVIOUS EXPLORATION:

San Lorenzo predecessor companies conducted various exploration programmes as shown in the table below.

In 2016, six diamond drill holes were completed for a total of 1,190 metres.

Significant Results from the 2016 Drilling Programme

In late 2018 a second diamond drilling programme of eight holes totaling 1,537 metres was conducted on several targets.

Significant Results from the 2018 Drilling Programme

Geophysics has not been conducted over the entire Property with only a total of 36.9 line-kilometres of Induced Polarization (“IP”) surveys completed. The figure below shows the extent of the IP surveys. The results from these surveys define several strong high contrast chargeability anomalies with associated moderate resistivity.

To the right are typical resistivity and chargeability profiles from the Salvadora surveys. The profile shows a strong resistivity anomaly coincident with a pronounced chargeability anomaly which for the type of target being explored for at Salvadora is positive.

Salvadora is located approximately 25 km east of the village of Diego de Almagro which is located in the Province of Chañaral, III Region, Chile and lies approximately 20 km southwest of the El Salvador copper mine and 25 km west of the Potrerillos copper smelter.