Esperanza Silver Stream

Esperanza is an advanced stage, low-capital-intensity gold project in Morelos State, Mexico operated by Zacatecas. Esperanza was previously acquired from Alamos Gold which progressed the project through advanced engineering, including metallurgical work, while focusing on stakeholder engagement through building community relations. Esperanza is an oxidized gold-silver skarn deposit which Zacatecas expects to be mined via open pit and processed through heap leaching. The project has previously been envisioned as a 7.3 Mtpa operation producing an average of 111 koz of gold and 225 koz of silver annually.

Zacatecas has outlined that significant drilling has occurred on the Esperanza project with more than 69,000 meters completed to date. Three zones of skarn mineralization exist within one kilometer of the deposit, the Northern Contact, NE Intrusive Contact and Colopotec prospects. Two holes at the Northern Contact have intercepted between 12 and 15 meters of skarn mineralization, averaging 150 g/t silver. Additional targets exist on the 14,337 ha land package including the Coatetelco, Mercury Mines and Alpuyeca targets.

Metalla holds a 20% silver stream on Esperanza subject to ongoing payments of 20% of the silver spot price. The stream is subject to a maximum of 500 Koz silver delivery if commercial production occurs prior to 2029. Metalla also retains the right of first refusal on future royalty and stream financing for the Esperanza project.