The Right Assets: Two High-Grade Projects in a Prolific Mineral Trend

Rebeico Copper-Gold Project in Sonora, Mexico

  • Wholly-owned high-grade copper-gold project comprised of 3,459 hectares of privately-owned land. Property has multiple significant exploration targets including the Alaska Vein, the New Year Zone, the IP Anomaly, and a number of historic mines including the El Cobre copper mine.
  • Drilling highlights include 19.3 metres grading 1.6% copper plus 1.8 g/t gold from surface and 1.0 metres grading 6.0% copper plus 17.7 g/t gold from underground.

Guadalupe y Calvo (GyC) Gold-Silver Project in Chihuahua, Mexico

  • Option to acquire 100% ownership of an advanced-stage, high-grade gold-silver project spanning 2,750 hectares within a historic mining district with production of over 2.0 million ounces of gold and 28 million ounces of silver at an average grade 37 g/t gold and 870 g/t silver.
  • Extensive historical exploration including drilling since 2003 plus geophysics and generative exploration work which has led to a historic Indicated Resource of 236,543 gold-equivalent ounces grading 3.95 g/t Au Eq plus an Inferred Resource of 16,713 gold-equivalent ounces grading 3.38 g/t Au Eq. The resource remains open for expansion both along strike and at depth.

Endeavour Silver Corp. reported in a technical report titled “Technical Report on the audit of the mineral resource estimate for the Guadalupe y Calvo project in Chihuahua State, Mexico” was prepared by Micon International Ltd. as of December 15th, 2012 the above historical mineral resource. For Ridgestone’s purposes, the estimate for GyC are considered to be historical estimates under National Instrument 43 101 (“NI 43 101”) as they were prepared by Endeavour before Ridgestone entered into the agreement to acquire the projects from Endeavour. A Ridgestone qualified person has not done sufficient work to date to classify these historical estimates as current mineral resources. Ridgestone is not treating these historical estimates as current and the historical estimates should not be relied upon. The mineral resource was estimated following the CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines, prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council on 27 November, 2010. The resource estimate was conducted using the Vulcan mining software to produce a three-dimensional resource model for the Rosario and Nankin veins. Gold equivalency is based on US$1,900 per ounce gold price and US$25.00 per ounce silver prices, assuming 100% metallurgical recoveries.

The Right Time: Copper & Gold Spot Prices Near 5-Year Record Highs

Copper has traded from a low of US$2.06 per pound in mid-2016 to a record high of US$4.30 per pound in February 2021. Gold has traded from a low of US$1,162 per ounce in late 2016 to a record high of US$2,058 per ounce in August 2020.

Demand from renewable power generation, battery storage, electric vehicles, charging stations and related grid infrastructure accounts for about a fifth of copper consumption, according to Citigroup Global Markets Inc. Citigroup made a huge call on the copper price for 2021 and 2022, forecasting $10,000 per metric ton (US$4.54/lb), with a "bull case" for $12,000 per ton (US$5.44/lb).

"The market now on the cusp of the tightest phase in what we expect to be the largest deficit in a decade" according to Goldman Sachs.

Gold is primed to benefit from global stimulus efforts, leading to low real interest rates, which will drive higher inflation.

CIBC is calling for gold to average US$2,100 per ounce in 2021 citing rising inflation as the dominant bullish factor for precious metals.

The Right Team: Demonstrated Ability from Discovery through Disposition

Ridgestone’s team has a proven track record of acquisition, discovery and monetization in Mexico and abroad. RMI has significant Management and Board bench strength, including a CEO (Jonathan George) that built and sold a company in Mexico, a Board Advisor (Dr. Andrew Ramcharan) that has advised on >$1B of transactions in the mining space, and an exploration team (Noris Del Bel Belluz, VP Exploration and Dante Aguilar Casillas, Country Manager) who have worked with some of the largest mining companies in the world.

Jonathan George, CEO: A seasoned mining entrepreneur and geologist with over 35 years of experience in exploration, development and financing. Jonathan founded, developed and sold one of the largest molybdenum deposits in Mexico for $195M. He was also instrumental in assembling Alpha Mineral’s uranium claims in the Athabasca basin, which was subsequently acquired by Fission Uranium for $185M.

Dr. Andrew Ramcharan, Strategic Board Advisor: Andrew has significant technical and capital markets experience, having raised >$600M at IAMGOLD and >$1B in debt and equity financings during his career. He also led the team at Petaquilla Minerals which made a >1M ounce gold discovery in Panama, in addition to holding several senior roles with leading resources company globally.

Norris Del Bel Belluz, VP Exploration: A mining veteran with over 35 years experience in projects ranging from exploration through to operation of underground and open-pit mines. Norris has been involved with a number of world-class deposits including Nevsun Resources’ Bisha min in Eritrea, which was acquired by Zijin Mining Co. for $1.8B, and Freeport-McMoran’s Grasberg mine in Indonesia. His technical background is complemented by senior roles with world-renowned engineering firms including Stantec and Wardrop.

Dante E. Aguilar Casillas, Mexican Country Manager: Dante has over 30 years of experience in exploration, mine operation, geology and technical evaluations. He has been involved with the evaluation of 28 precious-metal projects throughout Mexico and the United States. These projects have ranged from early-stage exploration through to operating mines, with clients including Fresnillo and Goldcorp. Dante was Exploration Manager at Goldcorp’s Peñasquito mine in Mexico and recognized for the discovery of the deep copper-gold skarn deposit in 2012.

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