San Diego Property

Overview

Processing Plant

Geology and Mineralization

Mineral Resource Estimate

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Location and Ownership

The 92 Ha. San Diego Property is located 75 km southwest of the city of Torreon, 4 km ENE of Golden Mineral’s San Juana Mine and 13 km NE of Penoles’ Santa Maria Mine in NE Durango State, Mexico. The property is easily accessible power and mining infrastructure nearby.

The property is approx. 20 minutes on a gravel road from a major 4 lane highway. The property is wholly owned by Golden Tag and is subject to a 2% NSR to Golden Minerals.

Deposit Setting

The Velardeña Mining District hosts quartz-calcite veins with associated silver, lead, zinc, gold and copper mineralization typical of the polymetallic, low-sulphidation epithermal deposits of northern Mexico.

The San Diego property is centered on a large Tertiary Diorite Stock which intrudes a thick sequence of Cretaceous limestone of the Aurora and Cuesta del Cura Formation.

Geology and
Mineralization

Mineralization at La Parrilla occurs in veins and replacement deposits, the locations of which are structurally controlled by pre-existing faults, fractures, and bedding planes.

Veins can be either open space filling, forming massive sulphide and breccia veins, or fault-related, consisting of matrix-supported breccias or gouge containing disseminated sulphides and oxides. The La Parrilla deposits contain primary sulphides. Due to supergene oxidation, the primary sulphides in the upper parts of some deposits have been altered. environments.

San Diego Deposit

33,000 meters of surface diamond drilling has been completed on the property since 2005. Silver occurs with Lead and Zinc sulphides and Silver-sulphosalts in a variety of environments, including: numerous laterally and vertically continuous Carbonate Veins; stringer zones; disseminated zones; Carbonate replacement zones; Mantos and, at depth, very large Skarn Zones. SGS (Canada) Ltd., using a geo-statistical approach to resource estimation, completed a 43-101 Compliant Resource Study in 2013.

The study identified 23 different Mineralized zones and generated 34 3D-Block Models. Results from the study are shown in Table 1. The wide variety in style, width and grade of mineralization across the property was evaluated using appropriate cut-off grades related to narrow-vein mining, long-hole mining or large-scale bulk mining methods in Mexico.

Estimated Mineral Resources

San Diego Project, Veldareña Mining District, Durango State, Mexico

43-101 Compliant reporting by SGS, April 2013

*Notes:

Block model estimates audited by David F. Machuca-Mory, Ph.D., PEng, Principal Consultant (Geostatistics), and Ilkay Cevik, PGeo, Associate Consultant (Geology), SRK Consulting Canada Inc.
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
Mineral Resources have been classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards on Mineral Resources and Mineral Reserves.
All figures rounded to reflect the relative accuracy of the estimates.
Reasonable prospects of eventual economic extraction were considered by applying appropriate cut-off grades, removing unrecoverable portions of the estimates, and reporting within potentially mineable shapes.
Metal prices considered were US$22.50 /oz Ag, US$1,800 /oz Au, US$0.94 /lb Pb and US$1.35 /lb zinc.
Cut-off grade considered for oxide and sulphide block model estimates were, respectively, US$140 g/t Ag-Eq and US$125g/t Ag-Eq. They are based on 2017 costs adjusted by the inflation rate and include sustaining costs.
Metallurgical recovery used for oxides based on weighted 2015-2017 actuals was 70.1% for silver and 82.8% for gold.
Metallurgical recovery used for sulphides based on weighted 2015-2017 actuals was 79.6% for silver, 80.1% for gold, 74.7% for lead and 58.8% for zinc.
Metal payable used was 99.6% for silver and 95% for gold in doré produced from oxides.
Metal payable used was 95% for silver, gold and lead and 85% for zinc in concentrates produced from sulphides
Silver equivalent grade is estimated as: Ag-Eq = Ag Grade + [ (Au Grade x Au Recovery x Au Payable x Au Price / 31.1035) + (Pb Grade x Pb Recovery x Pb Payable x Pb Price x 2204.62) + (Zn Grade x Zn Recovery x Zn Payable x Zn Price x 2204.62) ] / (Ag Recovery x Ag Payable x Ag Price / 31.1035)
Tonnage is expressed in thousands of tonnes, and metal content is expressed in thousands of ounces or thousands of tonnes.
Totals may not add up due to rounding.

Cautionary Note: Mineral resources are not Mineral Reserves as they do not have demonstrated economic viability. Mineral Resources may be impacted by additional infill and exploration drilling that may identify additional mineralization or cause changes to the current domain shapes and geological assumptions. Mineral Resources may also be affected by subsequent assessments of mining, processing, environment, permitting, taxation, socio-economic, and other factors.