Terreno Resources Discovers Several New Mineralized Zones at the Las Cucharas Gold & Silver Project in Mexico

The Las Cucharas represents a historic gold and silver mining area, with well documented small-scale production from 1903 through 1961 of 3,000 kilograms of gold and 30,000 kilograms of silver (Vargas, 1994, COREMI Pub M-12e). It is located in the southern extreme of the mid-Tertiary Sierra Madre Occidental (SMO) volcanic belt, which hosts many of Mexico's gold and silver deposits. The Las Cucharas is considered a low-sulfidation epithermal precious metal system with significant mineralization occurring along a six kilometre northwest-trending structural zone. The project area covers 4,447 hectares in seventeen (17) concessions.

In 2018, fieldwork was hampered by an unusually strong hurricane season which brought three separate force five hurricanes and many tropical storms to the region. High rainfall and strong winds resulted in landslides, blocked roads, washed out bridges, and high river levels. Repairs to project access roads were carried out by Terreno from January to March 2019 with a D6 cat. A significant exploration benefit from the extreme weather has been the creation of several new outcrop exposures.

Continuing fieldwork at Las Cucharas provides evidence of a widespread hydrothermal precious metal system with much greater size potential and continuity than was previously known. Company geologists are working on a regional and property-wide interpretation of the structural controls on gold and silver mineralization in order to develop a reliable geological model for generating drill targets. A total of sixty-one (61) samples have been collected from the new outcrop exposures and assay results are pending. Please see Map 1, which indicates the locations of the new sampled zones.

1. Corral de Piedras Zone (see Photo1)

The alteration and mineralization style at Corral de Piedras apears very similar to that of the El Molino Zone, and is located approximately 1.5 kilometres to the east-northeast of the El Molino. Both zones are located near to the southeast extent of the project area.

At El Molino, gold and silver values are associated with predominantly northeast-trending banded quartz and quartz +/- tourmaline veins, veinlets, and breccias with a characteristic black weathering from a manganese-rich mineral assemblage. Surface sampling from previous operators within an area which measures 100 metres wide by a minimum of 380 metres long that was open in both directions reported values of 1.133 g/t Au and 143.3 g/t Ag over 3 metres. The 28 Individual samples reported ranged up to 4.844 g/t Au and up to 198.0 g/t Ag. These historical results were news released by Maverix Metals Inc. (formerly MacMillan Minerals Inc.) on June 26, 2012. A confirmation grab sample collected by Terreno staff in 2018 returned positive values of 0.64 g/t Au and 103 g/t Ag. Precious metal mineralization in this area appears to be widespread due to the intersection of fault and fracture systems with different orientations.

New exposures at Corral de Piedras have been traced over a 100 metre long area and appear to define an alteration and vein zone that is over 4 metres wide with an east-northeast orientation. Quartz veins and veinlets show variably banded, brecciated, cockscomb or drusy, and locally chalcedonic textures.

Several new exposures have also been identified in the 1.5 kilometre area between El Molino and Corral de Piedras with similar alteration and mineralization styles, which suggests the potential presence of a large continuously mineralized zone.

2. La Guaca and El Coco Zones (see Photo 2)

The La Guaca Zone is located to the northwest and is thought to be part of the La Italia-Jocuixle-La Taverna-Los Gallos vein system, which appears to be a relatively continuous 1.2 kilometre long northwest oriented structural zone. Only a very small part of the La Guaca Zone was previously visible, but the main structure and alteration zones are now exposed over greater than 16 metres of width.

The main structure in this exposure has a north-west orientation and is 1.5 metres wide, with drusy quartz veins, calcite veinlets, and abundant iron oxides. A previously unknown adit is now exposed and follows this structure. Terreno intends to clean out the adit to provide underground access for sampling.

Lateral and parallel to the main structure are sericite-clay-calcite alteration zones with fine disseminated pyrite and abundant iron oxides, which in turn changes outward to propylitic epidote-chlorite-calcite alteration, and then finally to relatively unaltered intermediate volcanic rock. The main structure and lateral alteration zones are greater than 16 metres in true width. The sericite-clay-hematite altered zone to the east of the main structure is roughly 6 metres wide, and has densely sheeted quartz veinlets.

The El Coco Zone is a newly discovered vein exposure approximately 800 metres to the east of La Guaca with a collapsed underground working. The vein structure indicates a northwest strike, is 1.5 metres wide, and consists of abundant quartz veinlets in a fault breccia matrix. There are abundant iron oxides and minor chalcopyrite, malachite, and pyrite. The wallrock is weakly altered roughly 1.5 metres on each side of the vein, with minor quartz veinlets and local calcite veinlets.

3. Jocuixtle Zone (see Photo 3)

Jocuixtle is part of the northwest-trending La Italia-Jocuixle-La Taverna-Los Gallos vein system, which has been traced over 1.2 kilometres, and was an important contributor to historic gold and silver production at Las Cucharas. The main underground working is not currently accessible.

The main Jocuixtle structure is a combination of clay-rich fault or sheared volcanic rock with abundant quartz veins and veinlets. It ranges from 1.5 to 4.6 metres wide where exposed. The wallrock typically has fine quartz veinlets and strong clay-sericite alteration with fine disseminated pyrite. Fine disseminated galena and malachite staining occur locally, and hematite and limonite iron oxides are common.

4. La Union - El Cardon Zone - The La Union and El Cardon Zones are sub-parallel vein structures which have been traced over 800 metres in strike length. These zones have significant underground development on several levels and were major contributors to gold and silver production at the Las Cucharas.

New exposures have been sampled to the northwest, southeast, and west of the main mineralized zones. Extensions of the structures are typically 1.5 metres in width where exposed, and consists of intense quartz veinlets in a strongly silicified fault breccia matrix. Limonite and hematite iron oxides are common, and pyrite is locally visible.

Sampling sites, procedures, and documentation were prepared under the supervision of Mr. Cary Pothorin, P.Geo., Vice President of Exploration for Terreno Resources Corp. and any scientific and technical disclosure has been approved by Mr. Pothorin as a Qualified Person as defined by National Instrument 43-101.

Quality Control and Assays

Rock samples were collected using industry standard documentation including sample location, type, width, and description. Samples were delivered to Bureau Veritas/Inspectorate Laboratories in Durango, Mexico for preliminary sample preparation consisting of crushing, pulverizing, and splitting, and then forwarded to Hermosillo, Mexico, and/or Vancouver, Canada for analysis. Analyses are done for gold (30 gram fire assay with an ICP finish); and 35-element ICP analyses. Samples with values over 10 g/t gold and 100 g/t silver are reanalyzed with a gravimetric finish. Bureau Veritas/Inspectorate is an ISO 9001 certified laboratory facility.

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Map 1 - Concession map of the Las Cucharas Gold and Silver Project showing locations of new areas described in the news release.

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Photo 1 - Corral de Piedras Zone - Quartz-Tourmaline Veinlets on Fractures, black weathering color caused by manganese content

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Photo 2 - La Guaca Zone - Vein exposure and sheeted quartz veinlets

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Photo 3 - Jocuixlte Zone - Sheared vein structure exposed in drainage

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