Pucamayo

Prospective for: Gold/Silver/Copper

Update:

In June 2018 the Company received written confirmation from the Peruvian Ministry of Energy and Mines ("MEM") that its Declaración de Impacto Ambiental ("DIA") at Pucamayo east, issued in 2015 with an expiry in March of 2018, had its expiry extended until March 5, 2020. In January 2020, the Company received 'Autorizacion de Incio de Actividades de Exploración' from the MEM, which extends the expiry of the DIA for 2 years. The Company has reached agreement with the local community regarding community engagement and surface access, and with local community's support is negotiating land access with the relevant individuals holding surface rights.

On March 15, 2020, Peru imposed a State of National Emergency in response to Covid-19, and the area of Pucamayo project remains subject to the State of National Emergency until at least August 31, 2020. Travel in the area is severely restricted, and the Company is not allowed to travel to the project, which has impacted the ability to advance the negotiations for surface rights access.

Location:

The Pucamayo project is located 185 km SE of Lima at an elevation of 3800 to 4200 m, in the Tertiary volcanic belt hosting several major epithermal gold deposits in Peru. Pucamayo is about 56kms south-south west of the Corihuarmi gold-silver mine of Minera IRL Limited, and about 25 kms east of the Cerro Lindo lead-zinc-copper mine of Compañía Minera Milpo S.A.A.

Ownership:

Pucamayo encompasses 109 sq km of contiguous concessions located in the Departments of Ica, Lima, and Huancavelica, approximately 185 km south-east of Lima. Condor has 100% ownership of 103 sq km of these concessions.

The Pucamayo 14 concession (6 sq km) was acquired by purchase agreement in August 2007, as amended in February 2009, and the Company has an 85% interest, with the seller of this concession holding a 1% NSR. Condor and Sandstorm Gold Ltd. ("Sandstorm") finalized a transaction in January 2017, and part of that transaction included the assignment to Sandstorm of the buyback right on the Pucamayo 14 concession's 1% NSR. If Sandstorm exercise the buyback right, the 1% NSR in favour of the vendor will be replaced with a 1% NSR in favour of Sandstorm.

The January 2017 transaction with Sandstorm also included the sale of a 0.5% NSR on the balance of the concessions at Pucamayo project (103 sq km), where the Company holds a 100% interest.

Previous Work:

A Phase 1 drill program at Pucamayo West was completed in March -- April of 2011. Highlights of the drill program included values of 340.9g/t Ag, 0.62g/t Au, 1.80% Cu, 1.77% Pb, and 2.27% Zn over 2.2 m in hole PUC-004. The majority of the drill holes successfully intersected the quartz-carbonate veins surrounded on the hangingwall and footwall by silicification with quartz-sulphide veinlets.

Dr. Jeffrey W. Hedenquist visited the Pucamayo East Project in 2017, accompanied by Ever Marquez, VP Exploration. Mr. Hedenquist's full report can be found on our website, at www.condorresources.com/i/pdf/Observations-on-the-Pucamayo-Prospect-July-2017.pdf

In August 2018, the Company completed a program of ground geophysical surveys, consisting of 23-line kilometers of IP and magnetics at Pucamayo East. The program achieved the primary objective of defining additional drill targets and expanding the target areas to the south and east of the original drill target. The area of the geophysics survey coincides with both a large high sulphidation epithermal target and a porphyry-type target. The 3 x 2 km high sulphidation epithermal target is evidenced with mapped areas of hydrothermal breccias, vuggy silica, residual silica, and clay assemblages. The results of the geophysics program confirm the conceptual model, and the significant exploration potential at Pucamayo East.

Geology/Mineralization:

At Pucamayo East, alteration and mineralization is hosted in hydrothermal breccias outcropping as an erosion window which has partially exposed a high sulphidation epithermal system with disseminated precious metals mineralization covering a target area approximately 1200m long by 200m to 700m in width, and a surrounding series of at least seven quartz epithermal veins classed as intermediate sulphidation. The hydrothermal breccias are exposed in outcrop over an area of 350m by 100m and continue below recent glacial fluvial sediments. Mapping and sampling has identified precious metal values hosted in vuggy silica, and a porphyry system with anomalous gold and copper values.