Chavin

Prospective for: Gold/Silver/Lead/Zinc

Update:

Casapalca commenced their initial drill program in August, 2018, and completed 1,219m of drilling in 5 drillholes on small area of the project. Results from Casapalca's drilling at Chavin were received in March 2019. Casapalca's primary objective was to confirm the continuity to depth of a high grade polymetallic vein, traced at surface for over 1km. Casapalca's drill program was unsuccessful in confirming the vein continuity, however, their drilling did confirm anomalous molybdenum and copper values, and evidence of copper porphyry assemblages.

The Company intends to maintain the Chavin project.

Location:

The Chavin (formerly called "Pucarima") Property covers an area of eight sq km within the central Andes mineral belt in northern Peru, and is host to a polymetallic vein system. Chavin is located 70 km NW of the Pierina gold-silver mine operated by Barrick Gold Corporation and approximately 10 km SW of the Pashpap Cu-Mo porphyry project of Teck Resources.

Ownership:

100% owned. In November 2015 the Company concluded a production lease agreement with Casapalca on the Chavin project. Under the royalty agreement, Casapalca pays a net smelter royalty of 3%, subject to an annual minimum of US$25,000, payable in advance. Casapalca did not make the annual minimum royalty payment in November 2018, and the non-payment effectively terminated the production agreement.

In January 2017, Sandstorm Gold Ltd. purchased a 50% interest in the Chavin NSR. On termination of the Casapalca production royalty agreement, Sandstorm's interest at Chavin converted to a 0.5% NSR.


Previous Work:

Condor optioned Chavin to Silex Peru SRL, the Peruvian subsidiary of Golden Minerals Company, in 2010, and Silex had expended in excess of $400,000 by June 2011, and progressed the project to the drill ready stage, including community approval and drill permits, in advance of a planned 12 hole, 2650m drill program. A corporate merger and change of ownership and objectives at Silex's parent in 2011 led to Silex returning the project to Condor.

Previous small scale mining activity on the principal vein at Chavin included a 50 metre long adit to follow the mineralization, dating from the 1970's. In the 1990's, a small drill program resulted in three short holes being drilled, two of which missed the structure completely. The third hole appears to have been drilled primarily within the hanging wall of the vein and from surface averaged 1.14 g/t Au, 26 g/t Ag, 2% Pb and 1% Zn over 14.1 metres, before exiting the mineralization. This work is not NI-43-101 compliant and therefore may not be relied upon.

Geology/Mineralization:

The claims cover a major polymetallic vein system, which has been exploited on a small scale at various times since at least the colonial era. The steeply dipping main vein here shows significant values in gold and silver in both massive sulfides and in sectors of drusy quartz, along approximately a distance of 500 meters, and is the primary exploration target.

Recent activity:

The principal vein identified to date has been traced over 1000 metres averaging 2 to 5 metres in width. Preliminary channel samples over a length of 3 to 5 metres across this vein have returned polymetalic values from negligible to a maximum of 13.9 g/t Au, 1,645 g/t Ag, 25.7% Pb, 10.7% Zn and 0.2% Cu. These results indicate potential for the discovery of high grade 'bonanza-style' mineralization within this vein system. Quartz-vein stockworks within the host intrusive are also anomalous and will be evaluated for epithermal precious metals mineralization.

While Chavin was under option to Silex, Silex contracted for an environmental impact study, constructed 6.5 km of access road to the project and an additional 1.5 km within the property boundary, and built a base camp. Silex also carried out 1:1000 scale geological mapping, a topographical survey for control, and collected and analyzed a total of 369 surface samples from the main vein and surrounding silicified and oxidized structures, as well as taking 25 samples from the existing 60m long adit.