NI43-101 Technical Report on the Silver Hill Copper and ...

NI43-101 TECHNICAL REPORT ON THE

SILVER HILL EXPLORATION PROJECT, MOROCCO

FOR TRIGON METALS INC.

Qualified Person: Fanie Müller, Pr.Eng, B.Eng (Mining), M.Eng (Proj. Man.), MMC

Effective Date: 24 September 2020

NI43-101 Technical Report on the Silver Hill Exploration Project, Morocco

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DATE AND SIGNATURE PAGE

This report titled “NI 43-101 Technical Report on the Silver Hill Exploration Project, Morocco” was prepared on behalf of Trigon Metals Inc. The report was prepared in compliance with National Instrument 43-101 and Form 43-101 F1. The effective date of this Report is 24 September 2020. I, Fanie Müller, in the capacity of Qualified Person of this Technical Report on the Silver Hill Exploration Project, do hereby certify that:- 1. To the best of my knowledge, information and belief, the Report contains all scientific and

technical information required to be disclosed to make the Report not misleading. 2. The facts presented in the Report are correct to the best of my knowledge. 3. The analyses and conclusions are limited only by the reported forecasts and conditions. 4. My compensation, employment or contractual relationship with the Commissioning Entity is not

contingent on any aspect of the Report. Hereby signed by the following Qualified Person:-

Fanie Müller Pr.Eng, B.Eng (Mining), M.Eng (Proj. Man.), MMC Vice President Operations and Country Manager Trigon Metals Inc. Signed at Windhoek, Namibia on 24 September 2020


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TABLE OF CONTENTS

Item 1: Summary ............................................................................................................................... 9

Item 1(a) Property Description and Ownership ....................................................................................... 9

Item 1(b) Geology and Mineralization .................................................................................................... 9

Item 1(c) Status of Exploration, Development and Operations .............................................................. 9

Item 1(d) Mineral Resource and Mineral Reserve Estimates ................................................................ 10

Item 1(e) Qualified Person’s Conclusions and Recommendations ........................................................ 10

Item 2: Introduction ......................................................................................................................... 12

Item 2(a) Issuer Receiving the Report ................................................................................................... 12

Item 2(b) Terms of Reference and Purpose of Report ........................................................................... 12

Item 2(c) Sources of Information and Data Contained in the Report ................................................... 12

Item 2(d) Qualified Person’s Personal Inspection on the Property ........................................................ 12

Item 3: Reliance on Other Experts .................................................................................................... 13

Item 4: Property Description and Location ........................................................................................ 14

Item 4(a) Area of the Property .............................................................................................................. 14

Item 4(b) Location of the Property ........................................................................................................ 15

Item 4(c) Mineral Tenure ...................................................................................................................... 17

Item 4(d) Issuer’s Title to/Interest in the Property ................................................................................ 18

Item 4(d)(i) Issuer’s Title to, or Interest in the Property ....................................................................... 18

Item 4(d)(ii) Surface Rights and Legal Access ....................................................................................... 18

Item 4(d)(iii) Expiration Date of Licence ................................................................................................. 19

Item 4(e) Royalties and Payments ........................................................................................................ 19

Item 4(f) Environmental Liabilities ....................................................................................................... 19

Item 4(g) Permits to Conduct Work....................................................................................................... 20

Item 4(h) Other Significant Factors and Risks ....................................................................................... 20

Item 5: Accessibility, Climate, Local Resources, Infrastructure and Physiography ............................... 21

Item 5(a) Topography, Elevation and Vegetation ................................................................................. 21

Item 5(b) Access to the Property ........................................................................................................... 24

Item 5(c) Proximity of the Property to Population Centres and Nature of Transport ........................... 25

Item 5(d) Climate and Length of Operating Season .............................................................................. 26

Item 5(e) Infrastructure ......................................................................................................................... 26

Item 5(e)(i) Surface Rights .................................................................................................................... 26


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Item 5(e)(ii) Power ................................................................................................................................ 26

Item 5(e)(iii) Water ................................................................................................................................ 27

Item 5(e)(iv) Mining Personnel .............................................................................................................. 28

Item 5(e)(v) Construction Sites .............................................................................................................. 28

Item 6: History ................................................................................................................................. 29

Item 6(a) Prior Ownership and Ownership Changes ............................................................................. 29

Item 6(b) Historical Exploration and Development ............................................................................... 29

Item 6(c) Historical Mineral Resource and Mineral Reserve Estimates ................................................ 29

Item 6(d) Historical Production ............................................................................................................. 29

Item 7: Geological Setting and Mineralization ................................................................................... 30

Item 7(a) Regional Geology ................................................................................................................... 30

Item 7(a)(iii) Structural Synthesis ........................................................................................................... 35

Item 7(b) Property Geology ................................................................................................................... 35

Item 7(c) Mineralization ....................................................................................................................... 38

Item 8: Deposit Types ...................................................................................................................... 47

Item 8(a) Mineral Deposits being Investigated ..................................................................................... 47

Item 8(b) Geological Model ................................................................................................................... 47

Item 9: Exploration .......................................................................................................................... 48

Item 9(a) Survey Procedures and Parameters ....................................................................................... 48

Item 9(b) Sampling Methods and Sample Quality ................................................................................ 48

Item 9(c) Sample Data .......................................................................................................................... 48

Item 9(d) Results and Interpretation of Exploration Information ......................................................... 51

Item 10: Drilling ............................................................................................................................. 53

Item 10(a) Type and Extent of Drilling .................................................................................................... 53

Item 10(b) Factors Influencing the Accuracy of Results .......................................................................... 53

Item 10(c) Drillhole Details ..................................................................................................................... 53

Item 11: Sample Preparation, Analyses and Security ....................................................................... 54

Item 12: Data Verification .............................................................................................................. 54

Item 13: Mineral Processing and Metallurgical Testing ................................................................... 54

Item 14: Mineral Resource Estimates ............................................................................................. 54

Item 15: Mineral Reserve Estimates ............................................................................................... 54

Item 16: Mining Methods .............................................................................................................. 54


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Item 17: Recovery Methods ........................................................................................................... 54

Item 18: Project Infrastructure ....................................................................................................... 54

Item 19: Market Studies and Contracts........................................................................................... 54

Item 20: Environmental Studies, Permitting and Social or Community Impact ................................. 55

Item 20(a) Results of Environmental Studies and Environmental Issues ................................................ 55

Item 20(b) Permitting Requirements ....................................................................................................... 56

Item 20(c) Waste and Tailings Disposal, Site Monitoring and Water Management .............................. 56

Item 20(d) Social and Community Related Requirements ....................................................................... 56

Item 20(e) Mine Closure Requirements ................................................................................................... 57

Item 21: Capital and Operating Costs ............................................................................................. 58

Item 22: Economic Analysis ............................................................................................................ 58

Item 23: Adjacent Properties ......................................................................................................... 58

Item 24: Other Relevant Data and Information ............................................................................... 58

Item 25: Interpretation and Conclusions ........................................................................................ 59

Item 26: Recommendations ........................................................................................................... 60

Item 27: References ....................................................................................................................... 61

Item 28: Appendices ...................................................................................................................... 62

Item 28(a) Copper occurrences on the project area ................................................................................ 62

Item 28(b) Slag occurrences on the project area .................................................................................... 63

Item 28(c) Qualified Person’s Certificate ................................................................................................ 64

Item 28(d) Contributing Experts .............................................................................................................. 66


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LIST OF TABLES

Table 1: Co-ordinates of current operating license ........................................................................................ 14 Table 2: Authorizations, permits and licences under Moroccan mining law .................................................. 17 Table 3: Licences held by Technomine ............................................................................................................ 17 Table 4: Annual temperature .......................................................................................................................... 26 Table 5: Annual rainfall (mm) .......................................................................................................................... 26 Table 6: Lithological description of Sample 2 (Benharref, 2020) .................................................................... 49 Table 7: Lithological description of Sample 3 (Benharref, 2020) .................................................................... 50 Table 8: Key risks and impacts ......................................................................................................................... 55

LIST OF FIGURES

Figure 1: Co-ordinates of the licence area ...................................................................................................... 14 Figure 2: Morocco ............................................................................................................................................ 15 Figure 3: Travel route from Marrakesh to Msissi ............................................................................................ 16 Figure 4: Property location in relation to Msissi ............................................................................................. 16 Figure 5: Msissi topographic map (1:100,000) ................................................................................................ 21 Figure 6: Local topographical areas ................................................................................................................. 22 Figure 7: Project elevation (amsl) .................................................................................................................... 23 Figure 8: Vegetation surrounding the project area ......................................................................................... 24 Figure 9: Vegetation on the project area ........................................................................................................ 24 Figure 10: N12 national road ........................................................................................................................... 25 Figure 11: Project access road ......................................................................................................................... 25 Figure 12: Main powerline (22 kV) located within licence area ...................................................................... 27 Figure 13: Main powerline (22kV) ................................................................................................................... 27 Figure 14: Seasonal water channels on the west of project area ................................................................... 28 Figure 15: Main seasonal water channel to the west of project area towards Msissi township .................... 28 Figure 16: Regional geological context of the licence (extract geological map at 1:200,000 from Todrha-Ma’ader, Destombes and Hollard, 1988) ........................................................................................................ 31 Figure 17: Geological map (extract from Carte Geologique du Maroc, Saadi, 1985) .................................... 31 Figure 18: General structural diagram of the south Ougnat sector ................................................................ 32 Figure 19: Interpretative diagram of the folding (Benharref, 2020) ............................................................... 33 Figure 20: Schistosity (Benharref, 2020) ......................................................................................................... 33 Figure 21: Map illustrating the overlapping contact between the north and south blocks (Benharref, 2020) ......................................................................................................................................................................... 34 Figure 22: Photo looking west and showing the trace of the overlap and the position of the different Paleozoic units (Benharref, 2020) ................................................................................................................... 34 Figure 23: Interpretative diagram of the regional overlap in the licence area (Benharref, 2020) .................. 35 Figure 24: Cambrian sandstone (left showing typical succession of massive Cambrian sandstones and right showing shale interlayer) (Benharref, 2020) ................................................................................................... 36 Figure 25: Bench surfaces typical of massive sandstones (Benharref, 2020) ................................................. 36 Figure 26: Relationship between the three outcrops in the southern part of the licence (Benharref, 2020) 37 Figure 27: Sand-schist alternation of the base of the first Bani formation on the southern edge of the licence (Benharref, 2020) ................................................................................................................................ 37 Figure 28: Copper occurrences within the Anti-Atlas range (Cu in green, Pb-Zn and Ag in red) ................... 38 Figure 29: Malachite specimens collected from the project area (a) ............................................................. 39 Figure 30: Malachite specimens collected from the project area (b) ............................................................. 40 Figure 31: Malachite and Azurite specimen collected from the project area ................................................. 41


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Figure 32: Azurite on the project area ............................................................................................................ 41 Figure 33: Old mining entrances (adits) .......................................................................................................... 42 Figure 34: Old underground workings ............................................................................................................. 42 Figure 35: Slag found on the project area ....................................................................................................... 43 Figure 36: Slag heaps ....................................................................................................................................... 44 Figure 37: Slag scatterings ............................................................................................................................... 45 Figure 38: Ancient building structure .............................................................................................................. 46 Figure 39: Satellite image showing ancient building structures ...................................................................... 46 Figure 40: Sample 1 - Sandstone samples heavily impregnated with copper oxides (malachite) .................. 48 Figure 41: Blocks of fractured shale with malachite injections (left) and Malachite stains in shale plains (right) ............................................................................................................................................................... 49 Figure 42: Drill core Inspected during January 2020 site visit (visible mineralization) ................................... 51 Figure 43: Target structures ............................................................................................................................ 52

LIST OF UNITS AND ABBREVIATIONS The following units were used in this Report:

Unit Description

˚C degrees Celsius

g/t grams per ton

ha hectares

km kilometers

km2 square kilometers

kV kilovolt

m meters

mm millimeters

The following abbreviations and definitions were used in this Report:

Abbreviation Description

amsl Above mean sea level

Ag Silver

Au Gold

CAD Canadian Dollar

CADETAF Central Purchasing and Development Office of the Tafilalet and Figuig Mining Region

CSA Canadian Securities Administrators

Cu Copper

dhs Moroccan dirhams

Dirhams Moroccan dirhams

E East

EIA Environmental impact assessment

MAD Moroccan Dirham

Ministry Moroccan Ministry of Energy and Mining

N North

NI43-101 National Instrument 43-101 (Standards of Disclosure for Mineral Projects), Form 43-101F1 and the Companion Policy Document 43-101CP


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ONHYM Office National des Hydrocarbures et des Mines (National Office of Hydrocarbons and Mines in Morocco)

OSC Ontario Securities Commission

Pb Lead

Property Silver Hill Copper and Silver Project

QAQC Quality Assurance and Quality Control

Report NI43-101 Technical Report

S South

Silver Hill Silver Hill Copper and Silver Project

Technomine Technomine Africa Sarl

Trigon Trigon Metals Inc.

TSXV TSX Venture Exchange

USD United States Dollar

Vendors Local shareholders of Technomine

W West

Zn Zinc

CURRENCY CONVERSION USD 0,10: 1 dhs CAD 0,14: 1 dhs


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ITEM 1: SUMMARY This technical report outlines the exploration potential of the Silver Hill Exploration Project in Morocco. The report does not contain any reference to a Mineral Resource, Mineral Reserve or project valuation and is purely a description of the property status, infrastructure and exploration potential.

Item 1(a) Property Description and Ownership

The project is located in the eastern region of Morocco towards the border with Algeria, approximately 5km north-east of the town Msissi in the Tinghir province. The Property can easily be accessed via the national road network which is of high quality and standards. It is an early stage exploration project, with limited on-site infrastructure and with some initial exploration work completed recently. Power and water infrastructure would have to be developed. There is however a 22kV powerline running adjacent to the Property as well as good potential for underground water. The project is held by Technomine. Trigon entered into an agreement to acquire 100% of the shares of Technomine on 21 May 2020.

The Property is currently permitted by way of an operating licence, No: 383549, which was granted effective from 21 December 2018 and expires on 20 December 2028.

Item 1(b) Geology and Mineralization

The Property is situated in the Eastern Anti-Atlas belt, an area well known for various mineral occurrences, especially copper and silver. The local geology is characterized by Cambrian outcrops with massive sandstone units and the target metals are mainly copper and silver. Structurally, initial interpretations indicate two major tectonic events. One being the presence of a fold system that significantly affects the Paleozoic cover south of the Precambrian group and a second being the presence of a significant north-east to south-west overlap due to some sort of vertical movement, lifting the Cambrian formations on the northern side above the Devonian formations on the south. Two copper oxide minerals, malachite and azurite, are found in abundance on the surface areas of the Property. Old workings are also found on the licence and the presence of numerous slags indicate that some smelting activity was taking place on the south-western area of the Property. Old underground entrances or adits are present and the workings can be accessed via small tunneling systems. It is believed that the workings and smelting activities are ancient in nature and it is not known if the ancient people who worked the Property were targeting the silver or the copper, or perhaps both.

Item 1(c) Status of Exploration, Development and Operations

The project is at the early exploration stage of the mining lifecycle and although some initial scouting work was completed by Technomine during the last two years, no formal exploration program, with the aim of investigating a Mineral Resource, was undertaken on the Property throughout its known history.


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Item 1(d) Mineral Resource and Mineral Reserve Estimates

This section is not applicable to this report.

Item 1(e) Qualified Person’s Conclusions and Recommendations

The main conclusions drawn from the information available are as follows:

• The presence of copper oxide minerals, in abundance on surface and in-situ, as well as the old workings and slags on the Property, indicate excellent potential for a copper prospect and warrant further exploration work to be conducted on the Property.

• Although no silver minerals, or native silver traces are visible based on visual inspection, unofficial assay results from the Technomine scouting exercises indicate the presence of silver.

• The preliminary assessments indicate an initial understanding, or hypothesis about the local geology and structures, but the area will have to be drill tested, amongst other exploration methods, to obtain a more accurate assessment of the property geology as well as the type, character and distribution of mineralization.

• Only oxide minerals were found on the Property during the initial scouting stages. Key for any exploration program design would be to allow for deeper diamond holes to try and find the source of the oxides (secondary minerals), being the primary sulphide feed source.

• The project is located at a regional address well known for base metal occurrences in Morocco. Morocco has a mining history that stretches over 100 years and is well known for being a mining friendly jurisdiction.

• The Property is easily accessible via the national road network. The well-maintained gravel road to the site is sufficient to be used for an exploration program.

• Access to and construction of drilling pads should be fairly simple, both on the flat lying areas as well as on the hills.

• The site is accessible in terms of surface rights and no further agreements or payments are required in order to conduct exploration activities.

• The risks and impacts listed in the environmental studies are normal for a project of this nature and

no fatal flaws were identified.

• There are no major climatic influences that may hinder operations, and exploration and mining activities can continue throughout the year.

• For exploration activities, water can be transported from Msissi town or a borehole can be considered. For any future mining activities, permanent power and water infrastructure would be required.

• Semi-skilled mining personnel are available in the towns of Msissi and Rissani. Exploration drilling contractors are also available in Morocco.


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The following recommendations can be considered:

• A detailed exploration program should be designed and the following objectives could be considered:

- Confirm/investigate current structural understanding - Geological framework and mineralization - Maiden Resource estimation - Extension along known strike areas - Other potential lateral extensions - Depth extension (primary sulphide source)

• The exploration program can be a phased approach, using a combination of diamond drilling and geophysics, and target areas adjusted as per phased results.

• Analysis for silver should certainly be considered.

• Formal QAQC procedures should be implemented before commencement of exploration activities to ensure that the information obtained from the program is accurate, representable and conforms to international exploration standards.

• Adjacent properties should be investigated for potential strike extensions.


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ITEM 2: INTRODUCTION

Item 2(a) Issuer Receiving the Report

This NI43-101 report was prepared by Mr. Fanie Müller, Vice President Operations and Country Manager, for Trigon. Trigon is an Ontario registered company trading on the TSXV under the symbol of TM.

Item 2(b) Terms of Reference and Purpose of Report

The report has an effective date of 24 September 2020 and is prepared in accordance with the requirements of NI 43-101F1 of the OSC and the CSA. The purpose of this technical report is to outline the exploration potential of the Silver Hill Exploration Project. The report does not contain any reference to a Mineral Resource, Mineral Reserve or project valuation. It is purely a description of the property status, infrastructure and exploration potential.

Item 2(c) Sources of Information and Data Contained in the Report

This report is based, in part, on internal company technical reports, maps and technical correspondence, published government reports, press releases and public information as listed in the References section at the conclusion of this report.

Item 2(d) Qualified Person’s Personal Inspection on the Property

Mr. Müller, a qualified person under the regulations of NI 43-101, conducted a site visit to the Property on 22 January 2020.

In addition to the site visit, Mr Müller held discussions with technical personnel from Technomine regarding all pertinent aspects of the project and carried out a review of all available literature and documented results concerning the Property. The reader is referred to those data sources, which are outlined in the References section of this Report, for further detail.


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ITEM 3: RELIANCE ON OTHER EXPERTS Mr Müller mainly relied on Dr. Mohammed Benharref (reference attached) for the following sections of the report:

• Item 7 - Geological Setting and Mineralization • Item 9 - Exploration


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ITEM 4: PROPERTY DESCRIPTION AND LOCATION

Item 4(a) Area of the Property

The area was previously held by way of a research permit (No: 1939140) and was recently upgraded to an operating licence (No: 383549). The operating licence covers an area of 7.89km², or 789ha. The co-ordinates of the operating licence area are set out in Table 1 and Figure 1.

Table 1: Co-ordinates of current operating license

Co-ordinate System Point of Reference Co-ordinates

Merchich/Nord Maroc A X = 558.087,22 Y = 74.190,26

B X = 558.976,21 Y = 74.190,26

C X = 558.976,21 Y = 74.483.95

D X = 559.750,12 Y = 74.483,95

E X = 559.750,12 Y = 75.194,36

F X = 561.428,90 Y = 75.194,36

G X = 561.428,90 Y = 73.023,45

H X = 560.571,65 Y = 73.023,45

I X = 560.571,65 Y = 72.187,01

J X = 558.087,22 Y = 72.187,01

Figure 1: Co-ordinates of the licence area

N

A B C D

E F

G H

I J

Operating licence 383549

Previously active research permit 1939140

0 2km 4km


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Item 4(b) Location of the Property

The Property area is located approximately five kilometres north east of the village of Msissi, which is situated in the south east of the Tinghir Province of Morocco.

Figure 2: Morocco

The commune of Msissi is one of twenty five communes in the Tinghir Province and is located at the extreme south east of the province. The village of Msissi, which is the chief town of the commune, is accessible from Tinghir by the regional road R113 which leads to Alnif. From there the national road N12 eastbound towards Rissani leads to Msissi approximately 45 km away. Both the cities of Casablanca and Marrakesh host international airports. From Marrakesh, the distance by road is 464 km and it is a 7 to 8-hour drive to site. From Casablanca, the shortest route is 567 km by road and approximately a 9-hour drive.


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Figure 3: Travel route from Marrakesh to Msissi

(Source: Google Maps)

Figure 4 shows the location of the licence in relation to the town of Msissi.

Figure 4: Property location in relation to Msissi

Previously active research permit 1939140

Operating licence 383549

Msissi township


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Item 4(c) Mineral Tenure

The Moroccan Ministry of Energy and Mining has regional directorates that are responsible for the granting of mining titles and rights.

In 2015 and 2016, the Moroccan Government replaced old legislation from 1951, modernising the legislative and regulatory framework governing the mining sector:

• 2015 - Law No 33-13 Related to Mines (Mining Law); and • 2016 - Decree No 2-15-807 on 23 May 2016 (on the procedure for granting mining titles).

Authorizations, permits and licences under the Mining Law include exploration authorizations; research permits; and operating licences, as follows:

Table 2: Authorizations, permits and licences under Moroccan mining law

Authorizations, Permits and Licences

Description Area Initial term

Renewal term

Exploration Authorization (Autorisation d’Exploration)

Confers on the holder the exclusive right to exploration in the area concerned and to obtain research permits in the area

100-600km2 2 years Renewable once for 1 year

Research Permit (Permis de Recherche)

Provides its holder with an exclusive right to research mining products within the area described in the permit in order to identify a deposit

Min 4x4km2 3 years Renewable once for 4 years

Operating Licence (Licence d’Exploitation)

Confers on the holder an exclusive right to extract and/or develop mining products from a deposit, as well as to construct buildings and facilities necessary for carrying out mining work

As defined and claimed by the operator

10 years Successive periods of 10 years until reserves are exhausted

Technomine is the holder of the following licences and permits, including the Silver Hill operating licence through the arrangements with a third party as set out in Table 3. Only the Silver Hill licence is discussed in this report.

Table 3: Licences held by Technomine

Project Licence holder Licence type Licence # Date of licence Expiry of licence

Silver Hill Ouiselsat (Farm-out agreement,

refer below)

Operating Licence 383549 21 Dec 2018 20 Dec 2028

Tamdoult Technomine Research permit 3941611 8 Nov 2019 8 Nov 2022




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Project Licence holder Licence type Licence # Date of licence Expiry of licence



Technomine is the holder of operating licence 383549 over the Silver Hill project, through the following agreements:

• The original research permit 1939140 was renewed by Ouiselsat (“permit holder”) on 21 December

2014 for a four-year period until 20 December 2018.

• Technomine expressed an interest in conducting work research and development mining on the Property and on 5 February 2018, Technomine and the permit holder entered into a “farm-out” (lease) agreement for the research permit. The Ministry approved the lease agreement on 29 November 2018.

• In August 2020, the research permit was transformed to an operating licence effective 21 December 2018 until 20 December 2028.

• On 6 August 2020, Technomine entered into an agreement with the permit holder for the transfer of the operating licence to Technomine, together with which the permit holder submitted a demand to the Regional Director of Mining of the Moroccan Ministry of Energy and Mining – Errachidia to request the transfer. This final transfer process is currently underway.

Item 4(d) Issuer’s Title to/Interest in the Property

Item 4(d)(i) Issuer’s Title to, or Interest in the Property

On 19 November 2019, Trigon announced that it had entered in a non-binding Memorandum of Understanding to acquire a 100% interest in the Silver Hill project.

On 21 May 2020, a definitive agreement was signed between the parties where Trigon acquired a 100% interest in Technomine.

Item 4(d)(ii) Surface Rights and Legal Access

The operating licence gives Technomine the right to mine, process and sell any material from the Property. In terms of the application for the operating licence, a payment of 18,000 dhs was made to the authorities with the application. A further payment of 100,000 dhs was made with the request for transfer of the licence from the permit holder to Technomine. No further payments are due over the life of the intended exploitation licence. According to the Moroccan Law, an amount of 5,000 dhs per hectare is payable for surface rentals of the area and is only applied to the portion of the licence under use (effective occupation inside the operating


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licence area). Although the land is owned by local communities, payments are made to the authorities who manage, protect and pay back the communities. An amount of 25,265.90 dhs has been paid for the project for a little bit more than 2ha. The next payment due will be at the end of 2020 for the years 2021 and 2022, based on surface area needed and/or under use at that time.

Item 4(d)(iii) Expiration Date of Licence

The original research permit 1939140 over the Silver Hill project was renewed on 21 December 2014 for a four-year period until 20 December 2018. Technomine applied for transformation from a research permit to an operating licence within the regulated time frame while the research permit was still in force, and the operating licence was granted in August 2020 effective 21 December 2018 to 20 December 2028.

Item 4(e) Royalties and Payments

There are no Government royalties applicable to the project. There are no back-in rights, payments, or other agreements and encumbrances to which the Property is subject.

Technomine will be subject to normal corporate income tax as follows:

• On the exported portion of turnover – 17.5%

• On the local portion of profits corresponding to local turnover – standard corporate income tax progressive scale (ranging from 10% to 31% for net income above MAD1 million).

Mining companies are also subject to an annual mining tax ranging from MAD1 to MAD3 per ton extracted, as specified by the regional authorities where the mining takes place.

Item 4(f) Environmental Liabilities

The environmental division of the Ministry, together with national and regional committees, is responsible for overseeing the EIA process and approving projects.

Laws relating to sustainable development and protection of the environment include:

• Law No. 11-03 – Protection and enhancement of the environment

• Law No. 12-03 – Environmental impact studies (EIA Law)

• Law No. 13-03 – Air protection

• Law No. 36-15 – Water

• Decree No. 2-04-553 - Spills, flows, discharges, direct or indirect deposits in surface or groundwater

• Law No. 28-00 – Waste Management

In terms of the EIA Law, mining activities are subject to a prior authorisation granted based on both an:


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• Environmental impact study prepared by the promoter of the project, which is reviewed by the National Environmental Committee for EIA (NECEIA) or Regional Environmental Committees for EIA (RECEIA).

• Environmental acceptability decision granted by the Environmental Evaluation Division (EED) of the Ministry.

An operating licence holder must therefore prepare an EIA before starting any proposed mining activities. Generally speaking, exploration activities do not require an EIA.

Technomine, on behalf of the permit holder, submitted an EIA, dated 13 September 2019, to the Ministry in terms of its application for conversion of research permit 1939140 to operating licence 383549. The public inquiry was conducted from 28 November 2019 to 17 December 2019 and no claim or objection was notified. The study was undertaken by EMGE, a specialized Moroccan qualified office for EIA studies under Moroccan law. On 21 May 2020, the environmental permit was granted by local authorities for the exploration, exploitation and treatment of copper and silver metal for a period of five years. The approval of documentation included, inter alia, the community consultation process, plans for dust suppression and handling of explosives, despite the project’s early stage.

Technomine, as the holder of the operating licence, will be subject to the requirements of the above laws in terms of all environmental obligations, and must implement actions and measures to reduce or mitigate the environmental and socio-economic risks as set out in the EIA.

On depletion of the deposit and cessation of mining, the project site must be redeveloped and restored in accordance with the program approved in the EIA and any subsequent decisions by the relevant authorities. In Morocco, there is no legal requirement for a trust fund or any financial provision for closure and rehabilitation.

Item 4(g) Permits to Conduct Work

The operating licence gives Technomine the right to mine, process and sell any material from the Property.

Item 4(h) Other Significant Factors and Risks

Mr. Müller is not aware of any other significant factors or risks associated with the project.


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ITEM 5: ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

Item 5(a) Topography, Elevation and Vegetation

Four rugged mountain chains, being the Rif and three Atlas Mountain ranges, dominate Morocco's topography and divide the country into three geographic regions: the mountainous interior, including plateaus and fertile valleys, the Atlantic coastal lowlands and the semiarid and arid area of eastern and southern Morocco where the mountains descend gradually into the Sahara Desert.

The territory covered by the licence is characterized by a generally low topography except for the central part where there is a north-east to south-west structure of about 600m-800m in width and 150m-200m elevated above the surrounding ground level. This structure, named Bou El Madane, extends to the west towards the structure of Bou Safsâf, which borders the village of Msissi on the northern side, and to the east by the Rheris mountain range which dominates the entire region and whose altitude exceeds 1,300m.

Figure 5: Msissi topographic map (1:100,000)

(Source: Benharref 2020, Geological Report on the Bou El Madane Property)

On either side of the central structure, two networks of wadis (seasonal drainage channels) are located which drain rainwater during floods from the north-east to the south-west towards the town of Msissi. The most important network of wadis is that of Oued Smile north of the range which occupies almost the entire northern half of the permit and which joins the main western channel, Assif n’Bou Adil, just north of the Bou Safsâf range. The network of wadis south of the Bou El Madane range is secondary, with a relatively limited catchment area.

The licence area is geomorphologically subdivided into three areas with slightly different topographies as illustrated by Figure 6.

1. The northern domain shaped by a network of wadis with drainage towards the south and the south-west. The topography is generally flat except for a slight buttress towards the south.

Oued Smile drainage system

Bou el Madane structure

Southern drainage system

https://www.google.co.za/url?sa=i&url=http%3A%2F%2Fclipart-library.com%2Fnorth-arrow-image.html&psig=AOvVaw2x5BAY_2VeV_ppXyu_RMBx&ust=1580991275676000&source=images&cd=vfe&ved=0CAIQjRxqFwoTCKDkoM6xuucCFQAAAAAdAAAAABAD


22

2. A narrow central area, less than 1km in width, orientated north-east to south-west forming a massive rocky structure which is elevated above the two other domains.

3. A southern domain with a vast network of smaller wadis which drains to the south-east. This area is shallow dipping to the south and flat lying in the southern most area of the licence.

Figure 6: Local topographical areas


In terms of accessibility and exploration activities, the topography allows for easy access to all areas. Roads to drilling locations and drill pads should be fairly simple to construct. The topography does however limit exposure of the basement outcrops in the sense that the wadis and their beds are covering almost 2/3 of the licence area. The wadis are covering most of the Paleozoic formations. The geomorphology of the licence area offers potential for the discovery of groundwater, with reference to the well-known Ordovician aquifer in the eastern part of the Moroccan Anti-Atlas range in close vicinity to the project location. The elevation of Msissi, being the nearest village to the project is 794m above mean sea level. The territory of the municipality of Msissi consists of stony plains with landscape monotonous intersected by hills with steep edges, sometimes massive and elongated, which are the only remnants of selective erosion of the Paleozoic detrital formations. In the territory of the commune of Msissi, the altitudes range from 600 m to 1,300 m. The high altitudes are found in the northern part of the commune, towards the reliefs of the Ouguenat massif.

4 km



23

Figure 7: Project elevation (amsl)

The Property is situated in a semi-arid Saharan region, where the landscape is typical in nature for the Sahara desert including volcanic mountains, sand, rocks and gravel-covered plains and small areas of vast permanent vegetation. The vegetation includes shrubs, grasses, and trees in the highland and in the oases along the river beds.

Apart from a few oases on the meandering terraces of the main courtyards water, vegetation is scarce or seasonal. It often consists of a steppe sparse with some species of thorny plants and a few feet of acacia, tamarisk and oleander, which form alignments along the stream beds.

Project area

High Atlas mountain range

Anti-Atlas mountain range

https://www.morocco.com/area-guide/mountains/


24

Figure 8: Vegetation surrounding the project area

Figure 9: Vegetation on the project area

Item 5(b) Access to the Property

The Property is easily accessible by well-maintained tarred roads from all major Moroccan cities. The village of Msissi is accessible from Tinghir by the regional road R113 which leads to Alnif. From there the national road N12 eastbound towards Rissani leads to Msissi approximately 35 km away.


25

Figure 10: N12 national road

From the national N12 road, the project area is accessed by an established and well-maintained dirt road as illustrated by Figure 11.

Figure 11: Project access road

Item 5(c) Proximity of the Property to Population Centres and Nature of Transport

The municipality of Msissi covers an area of approximately 1,802km2 and has a population of 6,000 (2014). Msissi is located approximately 7km from the project area by road.

Project area

Access from N12 national road


26

The population of Rissani, being the closest town (approximately 50km by road) of significant size to the project is around 20,000 (2014). Basic services such as food, lodging and fuel can be found at both Msissi and Rissani.

Item 5(d) Climate and Length of Operating Season

The climate in Morocco varies according to the region, with a moderate and sub-tropical temperature in coastal areas and more extreme temperatures in the interior of the country.

The project area has a desert climate with almost no rainfall (approximately 110mm per year). The average annual temperature in the area is 21 degrees Celsius, with the hottest month being July, with temperatures averaging 33.7 degrees Celsius and the coldest month being January at an average of around 10 degrees Celsius.

Table 4: Annual temperature

Temp Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

˚C min -0.6 1.9 5.4 9.1 12.8 18.9 22.1 21.0 16.5 10.8 4.0 0.3

˚C max 23.2 25.7 29.7 33.2 36.6 40.9 42.5 41.9 39.5 34.0 27.5 23.7

˚C avg 10.4 13.3 17.4 21.2 25.1 29.6 33.7 32.6 28.2 22.0 15.7 11.6 (source: EIA, EMGE, 2019)

The annual average rainfall measured by two weather stations in the surrounding areas are shown in Table 5.

Table 5: Annual rainfall (mm)

Area Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Alnif 13.0 13.1 8.9 10.9 9.2 6.7 2.1 5.3 9.7 18.6 9.3 11.3

Tazarine 6.7 15.2 12.2 5.7 5.8 4.7 3.4 7.2 9.9 18.8 6.3 15.2

(source: EIA, EMGE, 2019) There are no major climatic influences that may hinder operations, and mining activities can continue throughout the year.

Item 5(e) Infrastructure

Item 5(e)(i) Surface Rights

Refer to Item 4(d)(ii) of the report.

Item 5(e)(ii) Power

There is currently no permanent electrical infrastructure, other than some small mobile generators which are used to feed the satellite office, installed at the project area. Electrical infrastructure, which would include a main incomer line, would have to be constructed if it is decided to use electricity from the national grid.

There is a powerline which runs from a north-easterly to south-westerly direction approximately 1km from the operating licence area . This line is used to supply the local town of Msissi and is energized at 22 kV.


27

There are several solar power installations in Morocco and this could also be an option as the technology is well understood and in-country support services are also available.

Figure 12: Main powerline (22 kV) located within licence area

Figure 13: Main powerline (22kV)

Item 5(e)(iii) Water

The local town of Msissi uses a borehole system and taps from the underground water resources. There is currently no permanent water infrastructure installed at the project site.

There are however potential underground water indicators present on the Property in that on either side of the central structure, two networks of wadis (ravine, seasonal water channels) are located which drain rainwater during floods from the north-east to the south-west. The most important network is that of Oued

22kV Powerline

Operating licence area

Main powerline


28

Smile north of the range which occupies almost the entire northern half of the licence and which joins West Assif n’Bou Adil just north of the range of Bou Safsâf. The network south of the Bou El Madane range is secondary, with a relatively limited catchment area and with a multitude of connections to reach Assif n’Msissi more to the south-west.

Figure 14: Seasonal water channels on the west of project area

Figure 15: Main seasonal water channel to the west of project area towards Msissi township

Item 5(e)(iv) Mining Personnel

Morocco has a commercial mining history of more than 100 years and skilled labour as well as local resource and mining professionals are readily available. Semi-skilled workers are available in the towns of Msissi (7km) and Rissani (50km).

Item 5(e)(v) Construction Sites

Apart from the powerline, the local site office and magazine store, there are no other structures or dwellings on the Property. There is ample space and sufficient flat lying areas for the construction of processing facilities, heap leach pads and waste disposal facilities.

Seasonal water channel (wadi)

View from project area looking westwards

View from project area looking south-westwards

Main seasonal water channel


29

ITEM 6: HISTORY

Item 6(a) Prior Ownership and Ownership Changes

In 2014, the permit holder was granted the renewal for research permit 1939140 for the period 21 December 2014 to 20 December 2018. On 5 February 2018, the permit holder and Technomine entered into a “farm-out” (lease) agreement for the research permit, valid for a period of ten years. In August 2020, the research permit was transformed to an operating licence effective 21 December 2018 until 20 December 2028. On 6 August 2020, Technomine entered into an agreement with the permit holder for the transfer of the operating licence to Technomine, together with which the permit holder submitted a demand to the Regional Director of Mining of the Moroccan Ministry of Energy and Mining – Errachidia to request the transfer. This final transfer process is currently underway. Trigon entered into a definitive agreement to acquire 100% of Technomine on 21 May 2020. Refer to Item 4(c) for further details of prior ownership and ownership changes.

Item 6(b) Historical Exploration and Development

Basic surface exploration was recently completed by Technomine. Initial results indicated a high-grade exploration project showing mineralization at good grades (for Cu) to high grades (for Ag) distributed over a wide surface area. Ancient slags grading around 1.5 to 2% Cu (not confirmed) are distributed widely across one third of the concession surface, indicating a history of very ancient mining and primitive metal recovery.

Item 6(c) Historical Mineral Resource and Mineral Reserve Estimates

There have been no previous Mineral Resource and Mineral Reserve Estimates done on the Property.

Item 6(d) Historical Production

There has been no historical recorded production on the Property, other than signs of very ancient mining and primitive metal recovery as referred to above, for which no formal records are available.


30

ITEM 7: GEOLOGICAL SETTING AND MINERALIZATION

Item 7(a) Regional Geology

Item 7(a)(i) General

The Property is located in the passage zone between Ougnat to the north, Ma’ader to the south and Tafilalet to the east; approximately ten kilometres south of the southern edge of the Massif de l'Ougnat which represents the most eastern Precambrian ridge in the chain of the Moroccan Anti-Atlas.

The 1: 200,000 geological map of Todrha-Ma'ader (Destombes and Hollard, 1988 (Figure 16) shows that the licence is located in a transition zone between the Cambrian base and the general Ordovician coverage of the south region of l'Ougnat, the Precambrian ridge being located some 9 to 10 km further north.

The territory of the licence shows two blocks of formations on either side of an east-north-east to west-south-west regional accident which cuts the licence in two, essentially detrital formations with massive sandstone and intermediate shales of Cambrian age and green shales of Ordovician age below the level of the south block, and marl-limestone and schisto-limestone formations of middle Devonian and upper Devonian age at the level of the north block, particularly at the north-eastern corner of the licence, characterized also by the development of quaternary deposits which cover all the Palaeozoic formations.

Some 5km to the north-east of the licence, the Cambrian formations are characterized by the development of volcanic bodies (basalts, basanites and phonolites) of middle Cambrian age interspersed with sandstones and green shales of the same age. This syn-sedimentary volcanic episode is also known and has been well studied at the Tafilalet Orientales where real volcanic and volcano-sedimentary devices have been highlighted (Benharref et al., 2014) with basalt and pyroclastic flows showing structures in cushions (pillow-lavas).

Immediately south and south-east of the licence, the geology is dominated by the famous friable detrital formations (predominantly shale) of Ordovician age (formations of the 1st Bani, Fezouata, Tachilla and Ktaoua) and which are heavily covered by deposits quaternary and recent. Further south in the Ma’ader region, the Devonian calcareous marl formations, which are known for their fossil richness in this part of the Anti-Atlas, appear and develop.


31

Figure 16: Regional geological context of the licence (extract geological map at 1:200,000 from Todrha-Ma’ader, Destombes and Hollard, 1988)

Figure 17 is an extract from a 1985 geological map produced by the Moroccan Ministry of Energy and Mines. Occurrences of Cu-Pb-Ag are noted to the north-west of the licence area as well as Pb on the eastern areas of the licence. These occurrences correspond to the Bou Maadine old mining site that is currently being explored by Maya Gold and Silver.

Figure 17: Geological map (extract from Carte Geologique du Maroc, Saadi, 1985)

Bou Maadene deposit

Licence area

5km 10km 0

Licence area

383549

https://i.stack.imgur.com/lu0cG.png


NI43-101 Technical Report on the Silver Hill Copper and Silver Project, Morocco 32

On a structural level, the analysis of the 1:200,000 geological map of Todrha-Ma'ader (Destombes and Hollard, 1988) allowed for the development of very interesting designs and interpretations of the geometry of major structures and their kinematics. From this analysis a structural diagram was developed, refer to Figure 18. Two major structural interpretations were developed from the analysis:

1. Manifestation of a folding that significantly affects the Paleozoic cover south of the Precambrian Massif de l'Ougnat; and

2. the presence of a significant NE-SW overlap bringing Cambrian formations (southern side of the licence) above Devonian formations (northern side of the licence).

Figure 18: General structural diagram of the south Ougnat sector


Item 7(a)(ii) The Fold

The geological map of the analyzed sector highlights a regional syncline fold, with an axial plane extending over more than 20 km, oriented generally west-north-west to east-south-east (N120 °). This syncline engages formations going from the Cambrian to the Devonian and its axis seems to dive weakly towards the west-south-west.

The "S" shaped geometry of the fold hinge, in particular at its end in the Assemane sector, is characteristic of the "long flank - short flank" folds and indicates folding under the effect of a non-coaxial stress whose horizontal shearing component is important. The direction of the "S" shape indicates a shearing movement (Figure 19), probably controlled by one (or more) incidents located along the east-north-eastern to west-south-western contact between the Precambrian basement in the north (Massif de l 'Ougnat) and the Paleozoic cover in the south.

Precambrian basement (Ougnat)

Rheris Syncline

Overlapping block



33

Figure 19: Interpretative diagram of the folding (Benharref, 2020)


This folding also manifests on the scale of outcrop with metric to hectometric folds affecting all the Paleozoic formations. On this scale, it is important to note the presence of real schists attesting to the development of a schistosity (Figure 20) of tectonic origin (a real "S1"), affecting formations of Paleozoic age.

Figure 20: Schistosity (Benharref, 2020)


Licence area


34

At the southern edge of the sector analyzed, the reappearance of a narrow band (less than 1 km wide) of Cambrian sandstones, in the midst of the Ordovician formations, globally east-north-east to west-south-west and which is limited towards the north by an accident in the same direction which, towards the east at the level of the Rheris massif, brings into contact a southern block (predominantly Ordovician with a narrow Cambrian band) with a northern block (essentially Devonian formations in contact immediate overlap).

Figure 21: Map illustrating the overlapping contact between the north and south blocks (Benharref, 2020)


Figure 22: Photo looking west and showing the trace of the overlap and the position of the different Paleozoic units (Benharref, 2020)


Northern Block (Devonian)

Overlap

Southern Block (Ordovician)

Devonian Limestones (top block overlaps)

Cambrian (base north block overlaps)

Ordovician (north block overlaps)

Cambrian (overlapping southern block)

Overlap



35

This arrangement and this reappearance of the Cambrian are interpreted as being the result of an overlapping vertical movement along the east-north-east to west-south-west incident, which leads to the exhumation of Cambrian formations which, in principle, should be several hundred meters deep. The regional importance of this overlap is attested by the extension of the overlapping incident which exceeds 30 km (it develops in particular towards the West of the sector analyzed).

Figure 23: Interpretative diagram of the regional overlap in the licence area (Benharref, 2020)


The licence area is thus crossed, in its central part, by this regional overlap of Hercynian age which brings out a band of Cambrian formations (massive sandstones) surmounted by shales (brittle and strongly covered by deposits of Quaternary) from the base of the Ordovician. It is this block of massive Cambrian sandstones which forms the central structure representing the most continuous base block (Paleozoic) in terms of outcrop on the licence. It also offers the clearest possibilities for the search for mineralization linked to the Paleozoic basement.

Item 7(a)(iii) Structural Synthesis

The major structural events, being the regional folding and overlapping, show that the Paleozoic series were affected by a syn-schist deformation of certainly Hercynian age. This deformation is performed in a non-coaxial context with a stalling sinistral component along east-north-eastern to west-south-western incidents and an overlapping vergence component north-north-west to north-west.

The latest information acquired on the sector of Msissi confirms the new conception of the syn-schist (hercynian) deformation which was recently developed and demonstrated by the works of geological cartography (at 1:50,000), also including structural studies at the Tafilalet Oriental level in the Merzouga region (Benharref et al., 2014a, 2014b, 2014c, 2014d and 2014e). It appears that this deformation (hercynian in this case) played a primordial role in the final structuring (the atlasic deformation having affected it later in a much softer way with vertical block movements) and, above all, guided the establishment of mineralization (mainly at Pb and Zn, incidentally at Cu and exceptionally at Ag) in this region.

Item 7(b) Property Geology

The project area in which the Silver Hill (locally also known as Bou el Madane) deposit is located is mainly characterized by Cambrian outcrops with massive sandstone units (succession of benches forming units with decametric thicknesses) separated sporadically by much smaller spacers of shales.

Licence area

Southern block overlap

Northern block overlap


36

Figure 24: Cambrian sandstone (left showing typical succession of massive Cambrian sandstones and right showing shale interlayer) (Benharref, 2020)


The sandstones show a completely black patina while their breaks are perfectly white indicating a highly siliceous composition which brings them closer to quartzites than sandstones. The surfaces of sandstone benches are very clear and are characterized almost systematically by the presence of sedimentary figures, typical of coastal environments with low water levels. Figures of planar stratifications, intersecting stratifications, current wrinkles and "flute casts" are common observations.

Figure 25: Bench surfaces typical of massive sandstones (Benharref, 2020)


Towards the north, the Cambrian sandstones are surmounted by the fine schists of the base of the lower Ordovician (upper formation of Fezouata and formation of Tachila). The sedimentary nature of fine origin (argillites) makes these two formations very vulnerable to erosion and they are almost completely covered by quaternary and recent deposits. Towards the north-east is the Devonian massif of Jbel Rheris which is separated from the Cambrian massif by the passage of the great overlapping incident, which takes an almost east-westerly direction at this level.


37

Figure 26: Relationship between the three outcrops in the southern part of the licence (Benharref, 2020)


Further south (towards the southern limit of the licence), appears a fine schistic alternation attributed to the base of the first Bani Formation. This appearance makes the topography slightly more uneven with continuous east to west mounds and which limit the northern plain occupied by the fine schists of the base of the lower Ordovician.

Figure 27: Sand-schist alternation of the base of the first Bani formation on the southern edge of the licence (Benharref, 2020)


Project area

Ordovician Schist

Cambrian

Devonian


38

Item 7(c) Mineralization

Item 7(c)(i) Regional framework

In terms of mining activity and exploitation, the Eastern Anti-Atlas (Saghro, Ougnat, Ma'ader and Tafilalet) is known for some of the most famous deposits in Morocco, such as the silver deposit of Imider (active mine), the polymetallic deposit (Pb-Zn-Cu-Ag-Au) of Bou Maadine (closed mine but site currently under exploration and development), the copper deposit of Bouskour (closed mine) and the deposit at Cu-Au de Tiouit (mine closed but resumption of exploration work in the past two years). In the far eastern part of the eastern Anti-Atlas (Ougnat, Ma’ader and Tafilalet), the presence of numerous barite veins and numerous indices of Pb, Zn, Cu, and sometimes Ag are seen. These veins and their indices have sometimes been the subject of artisanal exploitations mainly for barite and Zn. The gitology represents a main characteristic of the eastern domain known for its numerous artisanal mines of lead, zinc and barite.

Figure 28: Copper occurrences within the Anti-Atlas range (Cu in green, Pb-Zn and Ag in red)

(Source: Saadi, 1982)

Item 7(c)(ii) The Silver Hill deposit

The copper showings of Silver Hill were highlighted following some reconnaissance and exploration work that was carried out by Technomine over the last two years. The copper indices are located at the south-western area of the licence and collected in the Cambrian sandstones forming the central structure. Traces of copper oxides (malachite) are found plating at the level of the fractures of the schistous spacers separating the Cambrian massive sandstone unit.

Project location


39

Item 7(c)(iii) Copper Mineralization

Numerous indications of copper mineralization, mainly malachite, are widespread throughout the site (over approximately 3 km2) and sporadic occurrences of azurite. Figure 29: Malachite specimens collected from the project area (a)


40

Figure 30: Malachite specimens collected from the project area (b)


41

Figure 31: Malachite and Azurite specimen collected from the project area

Figure 32: Azurite on the project area


42

Item 7(c)(iv) Old Mining Works

Old mining works, estimated to be several centuries old, occur on the project area. They consist of a network of galleries with entrances on the sides of the hills. Some of the entrances have collapsed. Backfilled wells also occur on the Property which are easily recognizable as central depressions with fine clay filling. Figure 33: Old mining entrances (adits)

Figure 34: Old underground workings


43

Item 7(c)(v) Historic Slag

Numerous historic slag heaps and ancient smelting accessories are present on the project area. It is quite evident that an historic, or ancient smelting process was undertaken on the Property. Four main slag heaps are still intact and in other areas slags are scattered around the old workings. Figure 35: Slag found on the project area


44

Figure 36: Slag heaps


45

Figure 37: Slag scatterings

Item 7(c)(vi) Ancient Building Structures

There are numerous remains of ancient building structures on the project area. These structures represent old buildings and facilities, assumingly used by the people who were conducting the smelting activities at the time. These structures were not considered as archeological sites of importance during the Environmental Impact Assessment process, nor are they protected by any government institution and therefore will not pose a risk to any future processing or mining activities.

Slag


46

Figure 38: Ancient building structure

Figure 39: Satellite image showing ancient building structures

50m0 100m

Ancient building structures


47

ITEM 8: DEPOSIT TYPES

Item 8(a) Mineral Deposits being Investigated

The mineral deposit types are yet to be determined.

Item 8(b) Geological Model

This is an early stage exploration project and a geological model will follow upon completion of the initial exploration program.


48

ITEM 9: EXPLORATION Some early stage exploration work was carried out by Technomine, dating back to October 2017. The unofficial exploration work mainly included surface sampling, trenching and some shallow in-house diamond drilling. It must be noted that this early stage exploration work was mainly a scouting exercise and no official grades or target Mineral Resource can be stated in this report due to the lack of formal QAQC procedures on all fronts.

Item 9(a) Survey Procedures and Parameters

No formal survey procedures were applied during the early stage exploration work.

Item 9(b) Sampling Methods and Sample Quality

No formal sampling methods were applied during the early stage exploration work.

Item 9(c) Sample Data

Four scouting sampling programs were undertaken since October 2017.

Item 9(c)(i) Sample 1 – October 2017

In October 2017, eight samples were collected, including six samples (G1 to G6) from sandstone banks presenting a strong impregnation of malachite and two samples (Slag 1 and Slag 2) harvested from the large heaps of slag visible on site.

Figure 40: Sample 1 - Sandstone samples heavily impregnated with copper oxides (malachite)


Item 9(c)(ii) Sample 2 – April 2018

The second sampling test mainly focused on the following:

• Geological and gitological examination of the mineralization.


49

• Complementary sampling in order to obtain a representative coverage of mineralized zones. Observations of the site identified three types of copper mineralization:

1. An intense, diffuse and homogeneous impregnation of malachite in the massive sandstones which constitutes the most impressive type (by level of impregnation) and is the most characteristic of the mineralization at the site.

2. A stockwork of anastomosed fractures mineralized with malachite in the shale streaks which are inserted between the massive sandstone units.

3. Plates of smaller spots (5mm on average) of Malachite clearly visible on the shale planes.

Figure 41: Blocks of fractured shale with malachite injections (left) and Malachite stains in shale plains (right)


The additional sampling comprised 12 surface samples taken from the two facies carrying the mineralization, mainly massive sandstones and weathered shales. The lithological descriptions are shown in Table 6.

Table 6: Lithological description of Sample 2 (Benharref, 2020)

Sample Number Description

04-01 Sandstone with Malachite and Azarite impregnations

04-02 Fractured sandstone impregnated with Malachite

04-03 Neutral solid white sandstone

04-04 White-washed shale impregnated with Malachite

04-05 Whitish sandstone impregnated with Malachite

04-06 White sandstone lightly impregnated with Malachite

04-07 Massive white sandstone with light Malachite impregnation

04-07bis Oxidized sandstone with Malachite impregnation

04-08 Oxidized white shale with Malachite impregnation

04-09 Weathered oxydized sandstone with Malachite impregnation

04-10 Massive sandstone impregnated with Malachite

04-11 Silicified sandstone impregnated with Malachite


50

Item 9(c)(iii) Sample 3 – July 2018

Thirteen new surface samples were taken largely outside the known mineralized area in order to investigate the extent of mineralization in other areas. The results obtained confirmed the occurrences of copper and silver to a certain extent, in particular with the white sandstone samples. The lithological description of sample 3 is shown in Table 7.

Table 7: Lithological description of Sample 3 (Benharref, 2020)

Sample Number Description

01-07 Layers of white sandstone with malachite impregnation 02-07 Sterile white sandstone 03-07 Neutral white sandstone (ancient construction block), weakly impregnated with

grayish lines 04-07 Yellowish slags (copper) 05-07 Massive sandstone with strong malachite impregnation (former/ancient gallery

entrance) 06-07 Piles of malachite-rich shale blocks 07-07 Highly mineralized quartzite blocks : malachite-azurite (upper gallery entrance) 08-07 Malachite impregnated sandstone 09-07

Massive white sandstone, sometimes light greenish (low malachite impregnation)

10-07

11-07

12-07

13-07 (Source: EIA, 2020)

Item 9(c)(iv) Sample 4 – May to July 2019

Between May and July 2019, Technomine carried out a core drilling program which comprised of 13 short diamond holes, the deepest being just over 50m. The depth limitation was due to an old in-house drill rig used and most of the holes were not stopped in sterile rock. Some of the drill core from the in-house program is shown in Figure 42.


51

Figure 42: Drill core Inspected during January 2020 site visit (visible mineralization)

Item 9(d) Results and Interpretation of Exploration Information

Based on the initial exploration work, it is suggested that the main structure of interest is a shallow dipping zone with an assumed thickness of between 1m and 3m that has been traced and worked laterally for more than 5km. Two other previously worked structures have also been identified and appear to be repeats of the mineralized zone lower in the geological sequence. The target structures are shown in Figure 43.


52

Figure 43: Target structures


Niveauinférieur

Niveauintermédiaire

Niveausupérieur

Tasdescories

250m

Secondary target

Primary target

Tertiary target

Historic slag sites



53

ITEM 10: DRILLING

Item 10(a) Type and Extent of Drilling

No formal drilling program with appropriate QAQC measures has been undertaken on the Property. Refer to Item 9(c)(iv) for further information on the scouting drilling program.

Item 10(b) Factors Influencing the Accuracy of Results


Item 10(c) Drillhole Details



54

ITEM 11: SAMPLE PREPARATION, ANALYSES AND SECURITY This section is not applicable to this report.

ITEM 12: DATA VERIFICATION This section is not applicable to this report.

ITEM 13: MINERAL PROCESSING AND METALLURGICAL TESTING This section is not applicable to this report.

ITEM 14: MINERAL RESOURCE ESTIMATES This section is not applicable to this report.

ITEM 15: MINERAL RESERVE ESTIMATES This section is not applicable to this report.

ITEM 16: MINING METHODS This section is not applicable to this report.

ITEM 17: RECOVERY METHODS This section is not applicable to this report.

ITEM 18: PROJECT INFRASTRUCTURE This section is not applicable to this report.

ITEM 19: MARKET STUDIES AND CONTRACTS This section is not applicable to this report.


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ITEM 20: ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT

Item 20(a) Results of Environmental Studies and Environmental Issues

The permit holder submitted an EIA, dated 13 September 2019, to the Ministry in terms of its application for conversion of research permit 1939140 to operating licence 383549. The study was undertaken by the EMGE design office.

The EIA investigates the impact of mining activities on the landscape, air, water, flora and fauna, and covers requirements relating to:

• the protection of the environment; • mining activity; • the use of explosives; • employment and working conditions; • construction in rural areas; and • international conventions.

According to the analysis, the impact on the natural environment is considered to be reparable, while risks to health and safety of employees must be controlled by implementing appropriate safety standards and using the necessary protective equipment.

Key risk areas identified for which mitigation measures are presented in the report include the following as further highlighted in Table 8 below:

• threat to water resources from oil leaks, oils and waste; • impact on the air of dust, gas and smoke from engines of machines; • risks to employees’ health from dust and noise; and • risk of accidents due to landslides and rock falls.

Overall, the study has indicated that operating activities at the Property will have positive and beneficial impacts on the economy of Msissi, particularly in respect of job opportunities generated.

Table 8: Key risks and impacts

Environment Elements Negative Impacts Positive Impacts

None Moderate Medium Strong None Moderate Medium Strong

Air Odour X

Gas and fumes X

Dust X

Water Surface: Supply

X

Surface: Contamination

X

Underground: Supply

X

Underground: Contamination

X

Soil Ground stability X

Contamination X

Flora Threatened species X

Regression X

Habitat X

Fauna Extinction X


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Environment Elements Negative Impacts Positive Impacts

None Moderate Medium Strong None Moderate Medium Strong

Disturbance X

Trophic balance X

Security X

Human Infrastructure X

Cultural heritage X

Habitations X

Sanitary risk X

Agriculture X

Industrial X

Visual landscape X

Employment X

(Source: Environmental Impact Study, Projects Corporation Exploration Miniere, Studies Geologiques and Environmental)

A further environmental management report defines the environmental commitments of the company, in accordance with the conclusion of the EIA, and sets out a surveillance and monitoring program in respect of environmental, training and communication matters. On 21 May 2020, the environmental permit was granted by local authorities for the exploration, exploitation and treatment of copper and silver metal for a period of five years. The approval of documentation included, inter alia, the community consultation process, plans for dust suppression and handling of explosives, despite the project’s early stage.

Item 20(b) Permitting Requirements

The operating licence, which incorporates environmental approval, covers all permitting requirements for the project to commence.

Item 20(c) Waste and Tailings Disposal, Site Monitoring and Water Management

Item 20(c)(i) Waste and Tailings Disposal

The EIA provides for a storage area for treatment waste rock in the area of the treatment plant.

Item 20(c)(ii) Site Monitoring

The environmental management report sets out a surveillance and monitoring program in respect of environmental, training and communication matters. This includes a monitoring program for mitigation measures for both mining and the treatment plant, and a program for monitoring the quality of the affected environment, highlighting air quality as being the main impact to be monitored.

Item 20(c)(iii) Water Management

There is currently no water supply to the project area. Water required for both processing and drinking requirements will be supplied from boreholes, or for drinking water, brought in in tanks if borehole water does not meet required standards.

Item 20(d) Social and Community Related Requirements

The Property is located in a secluded area, not populated, far from any infrastructure and major population centres.


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The nearby municipality of Msissi has a population of around 6,000 (2014), for which economic activities include livestock, trade and some food crops. 36% of the population is currently unemployed. The project is beneficial for the local community as it will contribute to the economic and social development of the rural commune of Msissi and the province of Tinghir, primarily through employment and upliftment of the local economy.

Item 20(e) Mine Closure Requirements

When the deposit is depleted and mining and processing activities cease, the project site must be redeveloped and restored in accordance with the program approved in the EIA and subsequent decisions of authorities and commissions responsible for monitoring the project's impact on the environment.

The plan for restoration of the site is currently as follows:

• All materials and equipment used during mining operations must be removed, and entrances to all galleries and exits allowing access to the mine capped with concrete walls. Pits generated by the surface mining works must be backfilled and the facing treated.

• Treatment facilities must be dismantled and the construction area levelled.

• Tailings dams must be covered with topsoil and buried.

• All scrap, scrap metal and used tires must be removed and a general cleaning of the site undertaken.

• The company must comply with subsequent decisions from the authorities responsible for the evaluation of compliance with its commitments towards the environment.


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ITEM 21: CAPITAL AND OPERATING COSTS This section is not applicable to this report.

ITEM 22: ECONOMIC ANALYSIS This section is not applicable to this report.

ITEM 23: ADJACENT PROPERTIES No public information available on adjacent properties.

ITEM 24: OTHER RELEVANT DATA AND INFORMATION No additional information available to make the technical report understandable and not misleading.


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ITEM 25: INTERPRETATION AND CONCLUSIONS The main conclusions drawn from the information available are as follows:

• The presence of copper oxide minerals, in abundance on surface and in-situ, as well as the old workings and slags on the Property, indicate excellent potential for a copper prospect and warrant further exploration work to be conducted on the Property.

• Although no silver minerals, or native silver traces are visible based on visual inspection, unofficial assay results from the Technomine scouting exercises indicate the presence of silver.

• The preliminary assessments indicate an initial understanding, or hypothesis about the local geology and structures, but the area will have to be drill tested, amongst other exploration methods, to obtain a more accurate assessment of the property geology as well as the type, character and distribution of mineralization.

• Only oxide minerals were found on the Property during the initial scouting stages. Key for any exploration program design would be to allow for deeper diamond holes to try and find the source of the oxides (secondary minerals), being the primary sulphide feed source.

• The project is located at a regional address well known for base metal occurrences in Morocco. Morocco has a mining history that stretches over 100 years and is well known for being a mining friendly jurisdiction.

• The Property is easily accessible via the national road network. The well-maintained gravel road to the site is sufficient to be used for an exploration program.

• Access to and construction of drilling pads should be fairly simple, both on the flat lying areas as well as on the hills.

• The site is accessible in terms of surface rights and no further agreements or payments are required in order to conduct exploration activities.

• The risks and impacts listed in the environmental studies are normal for a project of this nature and

no fatal flaws were identified.

• There are no major climatic influences that may hinder operations, and exploration and mining activities can continue throughout the year.

• For exploration activities, water can be transported from Msissi town or a borehole can be considered. For any future mining activities, permanent power and water infrastructure would be required.

• Semi-skilled mining personnel are available in the towns of Msissi and Rissani. Exploration drilling contractors are also available in Morocco.


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ITEM 26: RECOMMENDATIONS The following recommendations can be considered:

• A detailed exploration program should be designed and the following objectives could be considered:

- Confirm/investigate current structural understanding - Geological framework and mineralization - Maiden Resource estimation - Extension along known strike areas - Other potential lateral extensions - Depth extension (primary sulphide source)

• The exploration program can be a phased approach, using a combination of diamond drilling and geophysics, and target areas adjusted as per phased results.

• Analysis for silver should certainly be considered.

• Formal QAQC procedures should be implemented before commencement of exploration activities to ensure that the information obtained from the program is accurate, representable and conforms to international exploration standards. Adjacent properties should be investigated for potential strike extensions.


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ITEM 27: REFERENCES Benharref, 2020. Geological Report on the Bou El Madane Property. Environmental Impact Assessment, 2019. Environmental impact study of the exploitation and enrichment project of copper ores from permit no: 1939140. Projects Corporation Exploration Miniere, Studies Geologiques and Environmental. Geographic Guide. Website. www.geographicguide.com. Google Maps. Website. www.googlemaps.com Saadi, 1982. Carte Miniere et Energetique du Maroc. Saadi, 1985. Carte Geologique du Maroc. Ministere de l’Energie et des Mines. Direction de la Geologie.

http://www.geographicguide.com/

http://www.googlemaps.com/


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ITEM 28: APPENDICES

Item 28(a) Copper occurrences on the project area


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Item 28(b) Slag occurrences on the project area


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Item 28(c) Qualified Person’s Certificate

I, Stephanus Petrus (Fanie) Müller, as the author of the Technical Report (as defined herein), herby certify that: -

1. I am the Vice President Operations and Country Manager for Trigon Metals Inc

130 Queens Quay East, Suite 1224 Toronto Ontario M5A 0P6

2. I graduated with a B.Eng (Mining) degree from the University of Pretoria in 2004 and an M.Eng (Project Management) from the same university in 2008. I obtained a Mine Manager’s Certificate from the South African Department of Mineral and Energy Affairs in 2010.

3. I have worked as a Mining Engineer for more than 16 years with my specialization lying within exploration properties and projects, Mineral Reserve estimations and mine management. I have completed a number of due diligence exercises, exploration property investigations, Mineral Reserve estimations and mine plans across various commodities, including copper, using approaches described by the National Instrument 43-101 (Standards and Disclosure for Mineral Projects), Form 43-101F1 and the Companion Policy Document 43-101CP (“NI 43-101”).

4. I am affiliated with the following professional associations, which meet all the attributes of a Professional Association or a Self-Regulatory Professional Association, as applicable (as those terms are defined in NI 43-101): -

Class Professional Society Year of Registration

Professional Engineer

Engineering Council of South Africa (Pr.Eng No. 20100339) 2010

5. I am responsible for Items 1 – 6, Item 8 and 10 – 27 of the technical report titled “NI43-101 Technical Report on the Silver Hill Exploration Project, Morocco” prepared for Trigon Metals Inc. with an effective date of 24 September 2020.

6. I have relied on Dr. M Benharref for Items 7 and 9 of this report, pertaining to the geological setting, deposit types and historic exploration on the Property. It must be noted that no Mineral Resources or Mineral Reserves are reported in this report, and that the report mainly focuses on exploration potential, status of the Property and infrastructure.

7. I have read the definition of “Qualified Person” set out in NI 43-101 Technical Report and certify that by reason of my education, affiliation with a professional association and past relevant work experience, I fulfil the requirements to be a Qualified Person for the purposes of this report.

8. I have read NI 34-101 and the Report has been prepared in compliance with that.

9. As of the effective date, to the best of my knowledge, information and belief, the Report contains all scientific and technical information required to be disclosed to make the Report not misleading.


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10. My compensation, employment or contractual relationship with Trigon Metals Inc. are not contingent on any aspect of the Report.

11. I have no prior involvement with the Property as discussed in this Report.

12. I undertook a personal inspection of the Property on 22 January 2020 to inspect the project site, historic mining sites, surface mineralization and infrastructure.

Signed at Windhoek on 24 September 2020.

Pr.Eng, B.Eng (Mining), M.Eng (Proj. Man.), MMC Vice President Operations and Country Manager Trigon Metals Inc.


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Item 28(d) Contributing Experts

Dr. Mohammed Benharref Baccalaureat Experimental Sciences Series (1984), Licence in Geology (1988), DEA in Structural Geology (1989), Doctorate in Structural Geology (on the Moroccan Anti Atlas), DESS in Education Sciences - Training Engineering (1998) Dr. Mohammed Benharref has over 28 years of professional experience in the geoscience field, including a Doctorate in Structural Geology. His career started in 1991, where he was the geologist responsible for exploration projects for the ONA Group (Pole Mines). In 1995 he became the Head of the Geology Department for the ONA Group. Thereafter he managed a 200 Million dhs project (" Délestage du Collecteur Ouest " – Casablanca) as Chief Geologist for 3 years from 1998 to 2000 following which he took up a role as Director of Human Resources for the Veolia Group (Delegated Management of Electrical Services, Water and Sanitation in the cities of Tangier and Tetouan) overseeing 2,000 employees in 2004 and 205. In 1998, Dr. Benharref founded CAP-Ressources (councils, education, expertise and training in geology, exploration, and GIS) and in 2019, became involved in Technomine which was set up to conduct mining exploration and development, studies and carrying out of mining works. Dr. Benharref has been involved in numerous major projects in Morocco throughout his career, and has an extensive knowledge of the country and its geology.

NI43-101 Technical Report on the Silver Hill Copper and ...

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