Cerro Bayo Mine Area

Centred approximately 10km west of the township of Chile Chico in Chile’s XI Region, the Cerro Bayo Mine District comprises 350km2  of highly prospective epithermal gold & silver Brownfields & Greenfields potential with +100 identified veins and an existing Gold-Silver Flotation Plant.

Equus holds a binding Option Agreement with Mandalay Resources Corporation (TSX:MND, OTCQB: MNDJF) to acquire the Cerro Bayo Project.

The Option entitles Equus to explore Mandalay’s ~350km2 Cerro Bayo mine district and to acquire all the mining properties, resources and mine infrastructure project which includes a 0.5Mtpa (1,500tpd) processing plant and tailings facility.

Mandalay Resources is currently processing low-grade stockpiles through the floatation plant and achieving attractive cash margins of approximately US$800,000/month. Equus is optimally positioned to seamlessly take control of all the Cerro Bayo mine infrastructure and to continue production through exercise of the option with Mandalay Resources prior to January 2022.

Consideration for completion of the acquisition, should Equus exercise its option, will be the issue to Mandalay of 19% of Equus’s share capital at the time of exercise. Additionally, Equus will pay a 2.25% NSR on production from the Cerro Bayo Mine District claims, payable once production reaches 50,000 gold equivalent ounces, which is subject to a re-purchase option in favour of Equus.

Brownfields Potential

Equus has a number of high-quality Brownfields target peripheral to mined areas & infrastructure

Taitao Target Area

At Taitao Equus has confirmed a Maiden MRE of 302koz Au equiv. @ 2.5 g/t Au equiv. Taitao was previously only mined to only shallow depths of ~35-45m and there remains significant potential for additional resources beneath and along strike of the existing mined areas.

Pegaso Target Areas

The Pegaso targets constitute 5 individual underexplored, host fault extensions of historic mines in highly prospective margins of 3.5km x 5km caldera structure. The cumulative 3.5km long target zones are located within 2km from Cerro Bayo’s 1,500tpd flotation plant infrastructure and along trend from existing high-grade mines (incl. Delia, Dagny, Branca, Coyita), these historical mines collectively host approximately 550KOz AuEq2 @ 5.68 g/t AuEq (Production/Remnant Resources).

Regional Greenfields Exploration

350km2 of prospective gold & silver exploration ground with +100 identified veins within Cerro Bayo project area.

Droughtmaster Target Area

Newly generated 4.5km long target trend located 12km southeast of the Cero Bay processing plant.