A FEW OTHER INTERESTING FACTS I NOTICED OR JUMPED OUT AT ME.
There is no infrastructure available in the area. The nearest source of electricity is in the village of El Carrizo. However, this village has only a domestic (low tension) power service which would not be suitable for a mining operation. A high voltage line is located approximately 5.5 km to the west of the
Project.
There is limited information available related to the company that conducted the existing underground workings in the area. Available information indicates that a small operation was conducted by Minera Nayaloa in the area of the Bonanza mine, 4.7 km east of La Estrella Mine, producing 15,000 t of material
from the Motaje District in 1973. Currently, there is an adit that extends 270 m and two drop/ventilation shafts at 45°. In 2006, an American citizen attempted to rehabilitate the mine entrance, and personnel of the SGM (Mexican Geological Survey) collected two additional samples, reporting values of 31 and 3.23 g/t Ag and 0.433 and 0.099 g/t Au (SGM, 2022). In the area,there are still some vestiges of the cement
shoots used to load the mineral which presumably was transported to the metallurgical processing
plant located in the village of San Dieguito de Abajo. There are no records regarding the quantity and quality of the mineral processed by this plant
The CIM standards require that a mineral resource must have reasonable prospects for eventual economic extraction.
The silver price, mining and operating costs were proposed by Asia Broadband and approved by Micon’s QP. In the QP’s opinion, the economic parameters are reasonable, although they were not developed from first principles specifically for the Bonanza Project and are considered conceptual in nature (Table 1.1). GO SEE THE TABLE FOR THE VALUES
The mineral resource has been constrained by reasonable mining shapes, using economic assumptions for an underground mining scenario. Using the parameters summarized in Table 1.1 the calculated breakeven cut-off silver grade is 56.7 g/t for underground mining. However, Asia Broadband has decided to report the resources at the Bonanza Project using a cut-off grade of 60 g/t silver.
1.10 EXPLORATION BUDGET AND OTHER EXPENDITURES
Since acquiring the Bonanza Property, Asia Broadband has completed an initial exploration and drilling
program. Asia Broadband has outlined potentially economic mineralization at the Bonanza Project,
which remains open, but further work will be necessary to identify the extent of the mineralization.
While Asia Broadband conducted the 2021/2022 drilling from surface, it is believed that some of the
future drilling of the deposit will be conducted from underground, as it would be more cost effective to
drill the deeper parts of the deposit in this manner. Micon concurs with this approach for future drilling.
During the remaining portion of 2022 and into 2023, Asia Broadband is planning to conduct the studies
and engineering necessary to complete a comprehensive mineral resource estimate for its Bonanza
Project. Asia Broadband’s proposed budget expenditure to complete the further exploration, and other
studies, is summarized in Table 1.4. Estimated future cost $634,404
