Mercedes

The underground Mercedes gold-silver mine is located in the state of Sonora in northern Mexico, approximately 250 kilometres northeast of Hermosillo, Mexico and 300 kilometres south of Tucson, Arizona. The Mercedes district has been the focus of mining activities since at least the late 1880s.

The Mercedes property consists of approximately 693 sq km of mineral concessions under lease from the government of Mexico. Commercial production commenced at the Mercedes mine in 2011, and the mine has produced over 800,000 ounces of gold. The Mercedes mill has capacity for approximately 2,000 tonnes per day.

More recently, exploration activities on the property have focused on multiple mineral targets that have the potential to extend the mine life beyond 2026. In 2021, Bear Creek Mining purchased a 100% interest in the Mercedes mine from Equinox Gold. Since 2017, average exploration expenses have been approximately US$1 million per annum, with Bear Creek budgeting $4 million for 2022.

As of December 31, 2021, the Proven & Probable Reserves totaled 2.2 Mt grading 3.75 g/t gold and 29.0 g/t silver, containing 267,000 ounces of gold and 2.1 Moz of silver (2.1 g/t gold cut-off, except Diluvio at 2.0 g/t gold cut-off). The Measured & Indicated Resources contain approximately 3.8 Mt grading 4.7 g/t gold and 42.4 g/t silver, containing approximately 575,000 oz of gold and 5.15 Moz of silver. The Inferred Mineral Resources total 0.9 Mt grading 4.5 g/t gold and 41.0 g/t silver, containing approximately 128,000 oz of gold and 1.2 Moz of silver (2.1 g/t gold cut-off, except Diluvio at 2.0 g/t gold cut-off). The Mineral Resources are inclusive of Mineral Reserves.