Candelaria, Nevada, United States

Candelaria, Nevada, United States

The property is located in central west Nevada just off the paved highway 95, which connects Las Vegas with Reno. The past producing minesite is serviced by paved road, power and water. Reclamation of the Candelaria Mine has been ongoing since 1998. The mine dumps were re-contoured and seeded, and the heap leach piles were rinsed with fresh water and seeded. Other infrastructure has been removed, and the substantial reclamation work meets all state and federal guidelines.

The project lies within the Candelaria Mining District, historically the richest silver mining district in Nevada. Estimated production from the late 1880’s to 1954 was 22 million ounces of silver. From 1874 to 1883, the Northern Belle Deposit alone exploited high grade lodes averaging 1,700 – 2,000 g/t (50 – 60 oz/t) silver. Open pit mining between 1980 and 1999 resulted in the production of 47 million ounces of silver, with Kinross Gold producing approximately 13 million ounces of that between 1994 and 1999.

Silver Standard acquired the project in 2001 and completed a historic resource which was reported in a technical report titled “Candelaria Project Technical Report” dated May 24, 2001 (filed on SEDAR on June 20, 2002), prepared by Pincock Allen & Holt. Historical resources are shown in the table below.

Silver One’s goal is to re-evaluate these resources and to explore for potential down-dip, high-grade extensions to the system. Drilling completed by Silver Standard partially delineated some of these deeper targets, but the testing of their full potential has not been completed.

RC Drill Program

Completed 2020-2022

For technical, analytical and sampling details on the RC Drill Program, please see October 15, 2020, February 16, 2021, May 26, 2021, July 15, 2021 and August 16, 2022 press releases.

Sonic Drill Program

Completed 2017-2018

For more information on the Sonic Drill Program, please see November 28, 2017, January 3, 2018, March 5, 2018, April 19, 2018, and December 27, 2018 press releases.

Resources

Leach Pad Resource

For more information on the Leach Pad Resource, please see our August 18th, 2020 news release HERE or visit sedar.com for the filings.

To gain access to the full technical report, please click HERE

Notes to accompany Leach Pad Resource:

1. Modifying Factors are considerations used to convert Mineral Resources to Mineral Reserves. These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors.

2. A Mineral Resource is a concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction.

   An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity.

   An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

   An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation.

   An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured Mineral Resource and may only be converted to a Probable Mineral Reserve.

3. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. The estimate of mineral resources has no known issues and do not appear materially affected by any known environmental, permitting, legal, title, socio-political, marketing, or other relevant issues. There is no guarantee that Silver One will be successful in obtaining any or all of the requisite consents, permits or approvals, regulatory or otherwise for the project or that the project will be placed into production
4. The mineral resources in this study were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (‘CIM’), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the Standing Committee on Reserve Definitions and adopted by the CIM Council on May 10, 2014.

Historic Resource

Notes to accompany Historic Resource:

1. Historical resource is from Candelaria Project Technical Report prepared for Silver Standard Resources Inc. by Pincock Allen & Holt, May 24, 2001 and made available HERE.
2. Mount Diablo and Northern Belle resources tabulated at a 0.5 opt Agsoluble cutoff grades, with only Agtotal shown in this table
3. Leach pads and low grade stockpile resources tabulated for entire accumulation of material.
4. Total silver grades factored from soluble silver grades using regression formulas developed by Snowden.
5. Silver equivalent grade includes the contribution from the gold grade (soluble) using an Ag:Au equivalency ratio of 57.8:1.

The historical mineral resource estimate used “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource”, which are categories set out in NI 43-101. Silver One considers these historical estimates reliable as well as relevant as they represent key targets for exploration work by Silver One.

Additional technical details on preparation of Historic Resource

1. Mount Diablo Deposit consisted of 538 drill holes by previous owners and 10 drill holes by Silver Standard Resources Inc. For drill holes that were twinned, the author used the lower of the two values assigned to the original holes. The mineral resource estimate used a kriging estimation method to establish ore zones with a cut-off grade of 0.5 opt Ag. Ordinary kriging was used to interpolate grades in the block model. The block models were set up with block dimensions of 25 feet by 25 feet in plan and 10 feet in height. The maximum search range used in the higher-grade zone was 235 feet, in the lower grade zone it was 1,000 feet and in the background zone it was 350 feet. Block models more than 300 feet from the nearest composite only constituted 3 percent of the total number of estimated blocks and were assigned to an inferred category,
2. Northern Belle Deposit consisted of 226 drill holes by previous owners, of which a portion of these holes were duplicated for the Mount Diablo Deposit database. The mineral resource estimate used a kriging estimation method to establish ore zones with a cut-off grade of 0.5 opt Ag. The mineral resource estimate used multiple indicator kriging to interpolate grades in the block model. Block models were set up with block dimensions of 50 feet by 50 feet in plan and 20 feet in height. The maximum search range used in the higher grade zone was 85 feet, in the intermediate-grade zone was 120 feet and the lower-grade zone was 140 feet and in the lower undifferentiated material below the current pit topography was 260 feet. Block models more than 300 feet from the nearest composite only constituted 3 percent of the total number of estimated blocks and were assigned to an inferred category;
3. Leach Pads consisted of 24,633,000 tons located on Leach Pad 1 and 12,695,000 on Leach Pad 2. The estimate for Leach Pad 1 is based on the fact that silver production indicates 51.5% of total silver was recovered by heap leaching operation, while 81.2% of the soluble silver contact was recovered. Further, the estimate for Leach Pad 2 is based on the fact that silver production indicates 42.4% of total silver was recovered by heap leaching operation, while 71.3% of the soluble silver content was recovered;
4. Low Grade Stockpile is based on limited and incomplete data and documentation. Material placed on the on the stock piles ranged from 0.5 to 0.65 opt Ag,

A the qualified person has not done sufficient work to classify the historical estimate as a current mineral resource therefore Silver One is treating these historical estimates as relevant but not current mineral resources.

Photos

Maps

Historical RC Drilling - Technical Details

For technical, analytical and sampling details on the Silver One reverse circulation (RC) drill programs, please see October 15, 2020, February 16, 2021, May 26, 2021, July 15, 2021, and August 16, 2022 press releases.

Historic drilling at Candelaria was by RC methods with cuttings sampled on a 5 ft (1.52 m) interval. Samples were analyzed at the mine assay laboratory for soluble (leachable) Ag and Au using hot cyanide leach methods on a 20 g sample. No information is available on QA/QC protocols at the mine laboratory.

Total Ag (AgTotal) values and Total Au (AuTotal) values shown for historic drilling in the sections have been derived from historic cyanide soluble Ag (AgSol) and Au (AuSol) using regression formulas developed from SVE drill assay results for AgTotal, AgSol, AuTotal, and AuSol (approximately 6435 assays for Mount Diablo and 1310 assays for Northern Belle). Separate regression formulas were developed for Sulphide, Mixed and Oxide mineralization at the Mount Diablo deposit and for Oxide plus Mixed mineralization at the Northern Belle deposit. The regression formulas used to determine Total Ag and Total Au are:

Readers are cautioned that the historical cyanide soluble Ag and Au drilling results are believed to be reliable as they were used for mine planning and development, however, a qualified person has not done sufficient work to independently verify the historical drilling results.

Technical Reports