Farellon is located near the town of La Serena, Chile, approximately a one-hour flight north from the Chilean capital, Santiago. Acquired in 2017, Farellon is an Iron Oxide Copper Gold mineralized system, currently being developed and explored from an underground decline and drift system.

The underground development program at Farellon since Q1 2018 has resulted in the processing of approximately 172,000 tonnes of mineralized Cu/Au material at a grade of approximately 1.80% (Q1 2024). The processing of this material has generated US$14.9 million (after processing costs) from the recovery and sale of 6.5 million pounds of copper (Q1 2024). This material was processed off-site where proceeds generated from the sale of the copper material have resulted in a cash positive position that has been used to support operations, purchase of equipment, and facilitated further development underground. A mill to support the production at Farellon was commissioned at the end of Q2 2022 at El Peñón, located 15 km from Farellon. Processing of the copper, gold and iron contained in the material at Farellon is expected to begin concentrate sales at El Peñón in Q2 2024.

Sectional view of Farellon’s underground operations*. Intervals are core length – estimated true width is ~70-80% of core length. The decision to commence production at Farellon is not based on a feasibility study of mineral reserves demonstrating economic and technical viability and there is increased uncertainty and economic and technical risks of failure associated with the production decision.