Overview

The Hurricane Silver project covers approximately 30,000 hectares and is located about 66 kilometres north of the city of Cusco within an underexplored region in southeastern Peru. Numerous high-grade silver occurrences have been identified at the project through first pass reconnaissance rock sampling by a previous operator.

The Company has signed a two-year community agreement that provides surface access to the Magdalena silver prospect and half of the Pampayeoc silver prospect and has commenced surface work at these two high-priority targets.

Location Map

Exploration

The reconnaissance channel sampling program at Hurricane Silver was conducted at the Magdalena and Pampayeoc targets and focused on partially exposed silver-base metal vein corridors hosted in Ordovician siltstones of the San José Group. A total of five mineralized vein corridors were identified, with highlights including 6 metres (m) of 375.1 g/t silver equivalent (AgEq), 4 m of 441.7  g/t AgEq and 1 m of 860.4 g/t AgEq.

Hurricane Silver Channel Sampling Results:

Sample ID   From (m) To (m) Length (m) AgEQ (g/t) Ag (g/t) Cu (%) Pb (%) Zn (%)

21HRT-01

 

1

4

3

106.5

77.1

0.16

0.27

0.07

Incl.

3

4

1

257.0

191

0.35

0.68

0.14

21HRT-02

 

3

8

5

154.4

123.2

0.12

0.38

0.11

Incl.

3

6

3

245.8

199.1

0.19

0.57

0.14

21HRT-03

 

No significant results

21HRT-04

 

1

5

4

147.1

119.6

0.09

0.35

0.12

Incl.

1

2

1

419.9

362

0.18

0.83

0.19

21HRT-05

 

No significant results

21HRT-06

 

No significant results

21HRT-07

 

No significant results

21HRT-08

 

0

6

6

133.3

67.2

0.62

0.06

0.10

21HRT-09

 

No significant results

21HRT-10

 

0

6

6

375.1

239.4

1.21

0.34

0.15

21HRT-11

 

2

5

3

65.9

37.5

0.06

0.38

0.18

21HRT-12

 

1

2

1

396.5

346.0

0.06

1.04

0.12

21HRT-13

 

2

3

1

860.4

605.0

0.26

5.79

0.21

21HRT-14

 

1

5

4

441.7

234.7

1.98

0.13

0.29

21HRT-15

 

No significant results

Main intervals - AgEq (Ag,Cu,Pb,Zn) at 25 ppm (minimum 5 m, max consecutive dilution 6 m)
Sub-intervals - AgEq (Ag,Cu,Pb,Zn) at 75 ppm (minimum 1 m, max consecutive dilution 2 m)
Metal price used for Eq calculations: Ag $18/oz, Cu $2.5/lb, Pb $1/lb, Zn $1.25/lb

Magdalena Target:

The Magdalena silver-base metal veins are hosted in four parallel shear zones occurring over an area of 1.2 kilometres (km) by 800 m. The four east-west oriented vein trends are marked by small outcrops, pits, adits and shafts in an otherwise extensively soil covered terrain. Six channel samples were completed on the northernmost vein trend, which varies in width between 2 m and 5 m, and has a strike length of 1.2 km. The three best channel samples on the structure highlight an 800 m long section of veins that returned 5 m of 154.4 g/t AgEq, 4 m of 147.1g/t AgEq and 3 m of 106.5 g/t AgEq.

In the central area of the outcropping veins, two distinct corridors were observed with widths between 1 m and 6 m. In this area, silver-base metal veins returned channel sample results of 6 m of 375.1g/t AgEq and 6 m of 133.3 g/t AgEq in an area where the veins outcrop for a 60 m strike length. In addition, the second vein corridor returned channel sample results of 1 m of 396.5 g/t AgEq and 3 m of 65.9 g/t AgEq. The southernmost outcropping vein channel sampled in this reconnaissance program returned a result of 1 m of 860.4 g/t AgEq. Based on the orientation and vertical nature of the veins channel sampled, Tier One’s technical team believes all channel sample intercepts at the Magdalena target are within 90% of true width, with the exception of trench 10, which was mostly sampled along strike due to topographic constraints in the field. In addition, based on the extensive soil cover at the Magdalena target area, Tier One’s technical team believes that additional silver-base metal veins will be found through geochemical soil surveys, channel sampling and additional surface mapping.

Pampayeoc Target:

The Pampayeoc silver-base metal vein corridor is located 4.2 km west-northwest of the Magdalena target. The veins are similar in nature to the Magdalena veins and represents the fifth mineralized silver-base metal orogenic vein corridor identified to-date on this part of the property. In the field, the veins are marked by small outcrops, shallow pits, shafts and adits exposed through extensive soil cover.  The vein corridor varies in width from 1 m to 4 m and has a strike length of 400 m. The best channel sample from this area returned 4 m of 441.7 g/t AgEq, which Tier One’s technical team believes is 90% true width.

Historical Work:

The property’s numerous high-grade silver occurrences were identified through first pass reconnaissance rock sampling of the Hurricane project by a previous operator. The largest of these occurrences is located at the Magdalena prospect, which is characterized by a 1.5 km shear zone where multiple high-grade veins have been identified with chip sample values of up to 1.4 m of 1,175 g/t silver, 2.1 m of 792 g/t silver, 2.5 m of 589 g/t silver and 14 m of 100 g/t silver. Past grab sample highlights from four additional prospects at the project are listed below in Table 1 and demonstrate the potential for high-grade silver and base metal mineralization.

Rock sampling highlights from high-grade silver prospects at the Hurricane Silver project (collected by a previous operator and database made available to Tier One):

Prospect Sample ID Ag (g/t) Pb (%) Zn (%)
Collquemarca RS508913 300 8.61 30.40
RS002167 196 4.77 14.50
RS002169 180 11.70 15.85
RS508912 174 15.05 4.17
RS002168 167 12.70 2.66
Melissa RS002278 1,155 16.60 17.95
RS007543 626 0.25 0.35
RS002280 324 8.74 3.50
RS007536 139 0.09 0.10
RS002276 125 1.18 0.77
RS007530 54.9 0.57 0.48
Pampayeoc RS100128 838 0.03 0.30
RS100117 821 0.08 0.30
RS007518 387 1.68 1.61
RS007079 316 9.73 0.57
RS100118 259 0.06 0.35
RS100119 179 0.01 0.12
RS100120 172 0.01 0.11
RS007085 147 0.03 0.09
RS100126 112 0.07 0.19
RS007083 83.2 0.29 0.16
RS007080 71.6 1.85 1.07
RS007678 71.5 0.05 0.06
RS007062 65.8 0.09 0.36
San Pedro RS502420 3,760 0.28 1.23

Total number of rock samples and ranges of silver grades from high-grade silver prospects: Hurricane Silver Project (interval of collection not known to Tier One):

 

Occurrence Total # of Samples Ag
< 10 g/t
Ag
10 - 30 g/t
Ag
30 - 50 g/t
Ag
50 - 100 g/t
Ag
> 100 g/t
Collquemarca 32 27 - - - 5
Melissa 41 33 2 - 1 5
Pampayeoc 90 59 14 4 4 9
San Pedro 18 17 - - - 1
Magdalena 441 313 40 16 22 50
Total 622 449 56 20 27 70

 

 

Rock and Chip Sample Highlights - Silver
Channel Sampling Highlights - Magdalena Target

Geology

Geologically, the Hurricane Silver project is situated in an underexplored segment of the Pisco-Abancay Deflection zone, which has seen multiple mineralizing events, and therefore may host different styles of precious metal mineralization. The Hurricane Silver project was originally assembled based on the results of a high-quality regional stream sediment survey, which was undertaken in 2007-2009.   

The Hurricane Silver project geology is composed of a northwest trending fold and thrust sequence of Ordovician to Devonian sedimentary rocks that are associated with orogenic gold mineralization. Extensive placer gold workings to the north of the Hurricane Silver project point to a potential source within the project. Data made available to Tier One confirms past exploration at the Hurricane project included rock samples of up to 19 g/t gold at the Perseverancia prospect.

Subsequent to the orogenic gold mineralization event, there have been numerous magmatic events that are associated with both precious and base metal mineralization. In particular, Eocene to Miocene aged intrusives are believed to be associated with silver-rich intermediate sulphidation epithermal veins. These have been recognized in several prospect areas, including the Magdalena, Collquemarca, Pampayeoc, Melissa and San Pedro prospects. The Magdalena prospect is characterized by multiple silver-rich veins that are exposed over a 1.5 km strike length. Chip sampling highlights are presented below in Table 3.

Magdalena prospect chip sampling highlights (taken by previous operator):

Ag (g/t) Length (m)
1,175 1.4
792 2.1
589 2.5
291 1.7
233 2.5
185 2.1
108 1.95
107 1.7
100 1.5
100 2.8
100 14

Other precious metal prospects are summarized below in Table 4. Collectively, these prospects have only seen first pass reconnaissance sampling and must still be evaluated by Tier One’s technical team to prioritize systematic exploration work and advance toward drill stage. 

Hurricane Silver Precious Metal Prospects:

Prospect Metals Stream Geo Comments
Perseverancia Ag-Au-Pb-Zn Au-Ag-Cu anomaly Series of narrow vein zones exploited by the Hochschild Group during the 1930s
Collquemarca Ag-Pb-Zn   Cliff-edge exposures of a 50 m wide shear zone with colonial adits into massive sulphide lenses
Pampayeoc Ag-Pb-Zn Strong Ag-Pb-Zn Zone of shallow pits on zones of magnetite-replacement with elevated Ag-Pb-Zn mineralization
San Pedro Ag-Pb-Zn   Series of shallow pits along-trend of Mascabamba; reported mining during the 1960s
Magdalena Ag-Pb-Zn Strong Ag-Cu-Pb anomalies Multiple shear-veins with high-grade Ag over narrow widths (1.4m at 1,175 g/t Ag)
Melissa Ag-Pb-Zn-Pt Ag anomaly Zone of colonial workings coincident with regional thrust fault

 

 

Stream Sediment Results - Silver
Stream Sediment Results - Gold
Stream Sediment Survey Results - Copper
Stream Sediment Survey Results - Pb-Bi-Zn Index

Ownership

Under the terms of the Share Purchase Option Agreement, dated April 28, 2021, Tier One has the option to acquire 90% or 100% of the shares of Compañia Minera Tororume S.A.C., the private Peruvian company that owns the rights to the Hurricane Silver project. In order to acquire 90%, Tier One has up to five years, from the date it secures the access agreement for the surface rights (“Access Date”), to make option exercise payments of US$4.68 million and assumes an obligation to carry all expenses until production. To acquire 100%, Tier One can buy the final 10% of Compañia Minera Tororume S.A.C for a further US$10,000,000 (total cost for 100% being US$14.68 million) within five years from the Access Date. Tier One is also required to conduct up to US$10.75 million in exploration over the same five-year option period, however exploration requirements cease once the option is exercised, which can be done at any time at Tier One’s election. Tier One also has the right to make option payments in cash or Tier One shares, subject to any required stock exchange approvals. The Access Date is when the access agreement and permits are secured, which is expected to occur over the next 12 months, and the majority of the option payments and work obligations are in the last two years of the five-year option period.

Disclaimers

Channel Sampling:
Analytical samples were taken from each 1-metre interval of channel floor resulting in approximately 2-4 kg of rock chips material per sample. Collected samples were sent to ALS Lab in Lima, Peru for preparation and analysis. All samples are assayed for gold, platinum and palladium using 30 g nominal weight fire assay with ICP-AES finish method (PGM-ICP27) and for multi-element using four acid digest ICP-AES/ICP-MS method (ME-MS61). Where MS61 results were greater or near 10,000 ppm Cu, 10,000 ppm Pb, 10,000 ppm Zn or 100 ppm Ag the assays were repeated with ore grade four acid digest method (Cu, Pb, Zn, Ag-OG62). QA/QC programs for 2021 channel samples at Hurricane Silver using internal standard and blank samples; field and lab duplicates indicate good overall accuracy and precision.

Silver equivalent grades (AgEq) were calculated using a silver price of US$18/oz, copper price of US$2.5/lb, zinc price of US$1.25/lb and lead price of US$1.00/lb. Metallurgical recoveries were not applied to the silver equivalent calculation.

Intercepts were calculated with no less than 5 m of >= 25 g/t AgEq with maximum allowed consecutive dilution of 6 m.

Grab and Chip Samples:    
Approximately 3-5kg of material was collected for analysis and sent to ALS Lab in Lima, Peru for preparation and analysis. All samples were assayed using 30g nominal weight fire assay. Platinum and Paladium were analyzed by ICP and MS (PGM-MS23); Gold was analyzed by ICP and AES finish (Au-ICP21), for samples assaying above 10 ppm from ICP21  the assay was repeated with 30g nominal weight fire assay with gravimetric finish (Au-GRA21). Silver and Base Metals were analyzed as part of the multi element package (ME-MS41), or to trace levels in 36 multi element package (ME-ICP41), In 2009, Silver analysis was completed by 30g fire assay with gravimetric finish (Ag-GRA21). Where MS41, ICP41 results were greater than 10,000ppm Cu, 10,000ppm Zn, 10,000ppm Pb or 100ppm Ag the assay was repeated with ore grade aqua regia digestion with AA finish (Cu-AA46; Zn-AA46; Pb-AA46; Ag-AA46 respectively).

Stream Sediment Samples:                
Approximately 0.25kg of -80 mesh material was collected for analysis by sieving in the field and sent to the ALS Lab in Lima, Peru for preparation and analysis. Samples from regional BLEG survey are analyzed using fire assay with ICP finish (Au-ICP21) and ultra-trace multi-element Aqua Regia digest ICP-AES/ICP-MS method (ME-MS41L).

Cautionary Note Regarding Historical Grab, Chip and BLEG Samples and Related Matters:
The historical grab, chip and BLEG samples from the Hurricane Silver project were collected by Compania de Exploraciones Orion SAC (2007-2009), a Pembrook Copper affiliate, and were included in a database obtained in connection with the transaction. Given the time interval, Tier One Silver has not assessed the validity of the QA/QC protocols that were followed in the collection of these samples. Accordingly, readers are cautioned about reliance on the accuracy or repeatability of this sampling. Sampling is of very limited geological significance and serves only to assist the development of a methodical exploration program involving geochemical, geophysical and ultimately diamond bit drill core drilling. There is no known mineral resource of commercial interest established at the Hurricane Silver project.

The historical grab, chip and stream sediment samples from the Hurricane Silver project were collected by Compania de Exploraciones Orion SAC (2007-2009). Tier One Silver has not conducted any due diligence on whether appropriate QA/QC protocols were followed in the collection of these samples, nor can it confirm their accuracy or repeatability.