Sonoro Gold expands Cerro Caliche by 10 new concessions

Executive Summary

• Sonoro Gold Corp. has executed agreements to acquire 10 additional mineral concessions adjacent to its Cerro Caliche gold project in Sonora, Mexico, significantly expanding the property footprint.
• The acquisition adds 2,574.16 hectares to the company's holdings, bringing the total to 25 contiguous concessions covering 3,924.26 hectares, with the goal of extending known mineralized corridors.
• The total consideration is $4.0 million USD, payable in annual installments of $1.0 million over four years, plus the assumption of approximately $570,000 USD in outstanding concession fees.

Key Details

• Transaction Structure: Sonoro Gold Corp., via its subsidiary Minera Mar de Plata (MMP), acquired a 100% interest in 10 mineral concessions from two arm's-length vendors.
• Land Expansion: The new concessions add 2,574.16 hectares to the project. The total project area is now 3,924.26 hectares across 25 contiguous mining concessions.
• Financial Consideration:
  • Total cash consideration: $4.0 million USD.
  • Payment terms: $1.0 million USD per year for four years.
  • Assumed liabilities: Approximately $570,000 USD in outstanding mineral concession fees.
  • No securities issued and no royalty interests granted as part of the deal.
• Geological Context:
  • The acquisition targets areas along strike and adjacent to the northern and southern boundaries of the Cerro Caliche project.
  • Historical data from prior exploration (including drilling by Paget Southern Resources in 2011 at El Batamote, ~300m north of El Rincon-Bellotoso) suggests structural continuity of mineralized corridors.
  • Historical mine workings on southern boundaries suggest potential continuation of known gold zones.
• Project Status & Future Plans:
  • Cerro Caliche is in the final permitting stage for an open-pit, heap leach operation.
  • The project hosts a low-sulphidation epithermal vein structure with over 25 northwest-trending gold mineralized zones.
  • An updated Preliminary Economic Assessment (PEA) is currently being prepared based on drilling and assay data from ~30% of identified zones.
  • The updated PEA is anticipated to be completed in Q1 2026.
  • A NI 43-101 Technical Report for the Preliminary Economic Assessment was filed on Oct 12, 2023, authored by Micon International Ltd. (effective date Aug 28, 2023).

Notable Quotes

• "We are pleased to have successfully acquired these strategic mining concessions and expand the project's footprint in Mexico's top gold-producing state. We believe the acquisition not only increases the project's exploration potential but may also expand the known mineralized corridors in the northern and southern regions of the property," commented Sonoro's president and chief executive officer, Kenneth Macleod.
• "Our primary objective remains initiating production on Cerro Caliche's central mineralized zones and utilizing generated cash flow for future exploration and potential resource expansion."