Silver Dollar Resources Inc.

Company Data | Introduction | Projects in Hand | Management
News Update | Chinese

Company Data

Introduction

Silver Dollar Resources Inc. is a mineral exploration company that completed its initial public offering in May 2020 and is fully funded for 2023 with approximately $7 million in the treasury. The Company's projects are located in two of the prolific mining jurisdictions in the world. They include the advanced exploration and development stage La Joya Silver Project in the state of Durango, Mexico, and the discovery-stage Pakwash Lake and the Longlegged Lake properties in the Red Lake Mining District of Ontario, Canada. The Company has an aggressive growth strategy and is actively reviewing potentially accretive acquisitions with a focus on drill-ready projects in mining-friendly jurisdictions.

FLAGSHIP PROJECT

La Joya Silver Project, State of Durango, Mexico

The La Joya property is situated approximately 75 kilometres directly southeast of the state capital city of Durango in a prolific mineralized region with past-producing and operating mines, including Grupo Mexico's San Martin Mine, Industrias Penoles's Sabinas Mine, Pan American Silver's La Colorada Mine, and First Majestic's La Parrilla and Del Toro Silver Mines.

The highlights from Silver Dollar's exploration activity at the La Joya Project in 2022 included the discovery of the Brazo Zone and the completion of 5,852 metres of drilling completed over 28 holes. For analytical results see news releases of March 24, 2022, May 4, 2022, June 13, 2022, August 17, 2022, and October 25, 2022

• Advanced-stage exploration & development in the heart of the Mexican Silver Belt.
• Definitive Agreement signed to acquire up to a 100% interest in the La Joya Silver property from NYSE listed First Majestic Silver Corp., one of the largest silver producers in Mexico (see SLV news release of August 10, 2020).
• Hosting the La Joya Main Mineralized Trend (MMT) as well as the Santo Nino and Coloradito deposits, the Property's exploration potential is considered excellent.
• Highlights from 2020/2021 database studies include:
• Newly identified areas demonstrate the potential to host additional high-grade mineralization.
• Skarn hosted mineralization has similarities to a recent discovery in the area.
• Fault kinematic study highlights additional targets.
• Additional untested geophysical targets identified.
• Geochemical assessment of historical drilling data expands mineralization understanding.
• New 3D geological and mineralization model generation (see SLV news release of Feb. 2, 2021).
• New target development in progress at the Brazo Discovery area including ground MAG survey, surface sampling, etc.
• Phase I drilling highlights on the underexplored Noria portion of the Project included the New Brazo Discovery, located ~1 kilometre west of the Main Mineralized Trend and the bulk of the historical resource.
• Hole NOR-21-004 returned 2,369 g/t or 83.6 oz/ton AgEq over 1.01m within a broader interval of 361.8 g/t or 12.76 oz/ton AgEq over 8.37m.
• A total of 3,428 metres of drilling over 17 holes were completed in Phase II drilling. The phase II drill program was successful in expanding the dimensions of the Brazo structure in both strike directions and at depth.

Highlights from the 2022 Phase II drill program include:

• Hole NOR-21-013 returned the highest grades to date from the new Brazo Discovery intersecting:
• 815 g/t or 28.75 oz/ton AgEq over 5 m within a broader interval of 363 g/t or 12.8 oz/ton AgEq over 19.35 m
• Hole NOR-22-015 returned intermittent mineral distribution with the highest-grade intercept of:
• 319 g/t or 11.25 oz/ton AgEq over 4.43 m
• Hole NOR-22-017 returned 1,052 g/t or 33.82 oz/ton AgEq over 1.87 m.

Interpretation of the drill results is being integrated with the geophysics and surface work to propose the next steps to expand on the Brazo mineralization and test for similar style mineralization proximal to and around the Coloradito intrusive contact.

CANADIAN PROJECTS

Red Lake Mining Division

The Red Lake area has produced in excess of 29 million ounces of gold and been producing it continuously since the 1930s. Silver Dollar's current projects are located approximately 30 kilometers south of the community of Red Lake.

Longlegged Lake Project

• Project consists of 8 claims covering 2,597 hectares.
• Excellent local infrastructure with year round access.
• Located ~15 km south of the Dixie Gold property.
• Previous work by Laurentian Goldfields indicated anomalous gold in soil samples.
• Project hosts the Pakwash Lake Fault Zone, which is a major regional structure.
• 100% owned subject to a 1.5% net smelter returns (NSR) royalty with a 0.75% buyback for $500,000.
• Fully permitted for exploration and drilling.

Pakwash Lake Project

• Project consists of 18 claims covering 4,252 hectares.
• Excellent local infrastructure with year round access.
• Located ~7.5 km south of the Dixie Gold property.
• Orogenic gold deposits are typically associated with crustal-scale fault structures.
• Pakwash Lake Fault and Sydney Lake Fault and splays run through the property.
• Northern boundary of the Pakwash Lake property borders TNT Target, a potential Cu-Ag-Au VMS discovery being explored by BTU Metals.
• 100% owned subject to a 1.5% NSR royalty with a 0.75% buyback for $500,000.
• Heliborne, high-resolution magnetometer (MAG) survey completed in Feb. 2022.
• Numerous geophysical features that warrant further follow up
• Fully permitted for exploration and drilling.

Investment Highlights

An Aggressive Growth Strategy

• Projects in the Mexican Silver Belt and Red Lake Gold Camp

Proven Management & Advisors

• With decades of mineral resource experience to draw upon

Backing by Strategic Investors

• NYSE listed First Majestic Silver and Billionaire Eric Sprott

Fully funded for next phase of exploration drilling with ~$7 Million in the treasury from the latest financing that included lead orders from NYSE listed First Majestic Silver and billionaire mining investor Eric Sprott.

Corporate Initiatives

Drilling at Flagship La Joya Project

• Latest drilling results returned more high-grade silver and gold

Add to Existing Project Portfolio

• Actively reviewing potentially accretive acquisition targets

Possible Spinout of Red Lake Assets

• Two discovery-stage gold projects in structurally active area

Management

Management and Directors

Michael Romanik, President, CEO & Director

Mr. Romanik has over 15 years of resource exploration and public market experience with an emphasis on management, promotion, and corporate finance. He has built an impressive network of resource and investment industry contacts over the years and demonstrated a proven ability to utilize those relationships to advance his business objectives. He has been the president and CEO of GoldON Resources (GLD-TSXV) since 2009.

Jeff Smulders, BSc, MBA, CPA, CMA, Chief Financial Officer, Corporate Secretary & Director

Mr. Smulders is a semi-retired professional accountant. His career spans 45 years and has managed his own financial consulting business for the last 25 years. He is a director and CFO of GoldON Resources (GLD-TSXV).

Guillermo Lozano-Chávez, MSc, MBA, P.Geo., Independent Director

Mr. Lozano has over 40 years of experience in mineral exploration in Latin America and manages his own geological consulting firm. He was vice president of exploration for NYSE listed First Majestic Silver Corp.

Mark Malfair, Exploration Manager

Based in Durango and bilingual in Spanish and English, Mr. Malfair is a consulting geologist with 25 years of experience in all phases of the mining industry. He has served as country manager in both Mexico and Honduras.

Technical Advisors

2010 recipients of the Thayer Lindsley International Mineral Discoveries Award:

Perry Durning, M.Sc.

Frank (Bud) Hillemeyer, M.Sc.

News Update

On August 03, 2023, Canasil Resources Inc. plans to settle the $200,000 non-interest-bearing loan from Silver Dollar Resources Inc. through the issuance of 6,666,667 units at a price of three cents per unit. The loan was granted as part of the exclusivity agreement with Silver Dollar as announced on April 20, 2023. The loan settlement is subject to approval by the TSX Venture Exchange.

Each unit will consist of one common share of the company and one non-transferable share purchase warrant. Each settlement warrant will be exercisable to acquire one additional common share of the company for a period of 24 months from the date of issuance at a price of five cents. The settlement shares and warrant shares will be subject to a statutory four-month-and-one-day hold period pursuant to applicable securities laws.

On August 01, 2023, Silver Dollar Resources Inc. has submitted a drilling permit application for the next phase of drilling at the high-grade Nora silver-gold property in the state of Durango, Mexico.

"With the surface rights agreements in place, we look forward to starting our inaugural exploration campaign on the Nora property once the drilling permit is received," said Michael Romanik, president of Silver Dollar. "Multiple drilling contractors have visited the Property, and we are currently evaluating their bids."

On June 20, 2023, Silver Dollar Resources Inc. has entered into a formal surface rights agreement with the local Ejido Pena, which collectively owns the land covering the area of the high-grade Nora silver-gold property in the state of Durango, Mexico. The agreement allows for surface exploration and drilling on the property.

"Engaging local stakeholders is always our priority, and we look forward to working with the Pena community to advance the Nora project responsibly and respectfully," said Michael Romanik, president of Silver Dollar. "Our team has visited the Property on four occasions since acquiring it in late April, and we have commenced the drill permitting process now that the surface rights agreement is in place."

On June 12, 2023, Further to its news release of April 20, 2023, Silver Dollar Resources Inc. has terminated the exclusivity period provided in the exclusivity agreement signed with Canasil Resources Inc. due to general market conditions.

The purpose of the exclusivity agreement was to give Silver Dollar the opportunity to review Canasil's assets and consider a corporate merger. Termination of the exclusivity period does not affect the separate option agreement between the parties, whereby Silver Dollar can earn a 100-per-cent interest in Canasil's Nora silver-gold property.

Under the terms of the Nora option, Silver Dollar can earn a 100-per-cent interest in the Nora property by incurring total exploration expenditures of $3-million and making cash payments totalling $375,000 over five years. Upon earning a 100-per-cent interest in the property, Silver Dollar will grant Canasil a 3-per-cent net smelter return, with Silver Dollar having the right to buy back 1 per cent of the royalty for $3-million. After granting the royalty, Silver Dollar will also pay an annual royalty of $25,000 which will be offset against the 1-per-cent royalty buyback. For additional information on the property, see Silver Dollar's news release of May 24, 2023.

Pursuant to the agreements, Canasil now has 60 days to repay the $200,000 non-interest-bearing loan Silver Dollar provided in return for the exclusivity period and the Nora option.

On May 25, 2023, Further to its news release of April 11, 2023, Silver Dollar Resources Inc. has completed the exercise of its option and now owns a 100-per-cent interest in its La Joya silver-copper-gold property.

The Property, located in the south-eastern portion of the State of Durango in the Mexican Silver Belt, consists of 15 mineral concessions totaling 4,646 hectares and hosts the Main Mineralized Trend (MMT), Santo Nino and Coloradito deposits.

On May 24, 2023, Silver Dollar Resources Inc. has provided a progress report on the continuing data compilation and review of all historical exploration data from the high-grade Nora silver-gold property.

Silver Dollar can acquire a 100% interest in the Nora property (the "Property") as part of its option and exclusivity agreements with Canasil Resources Inc. ("Canasil") (see news release of April 20, 2023 for further details).

Located in the Eastern Sierra Madre sub-province in the transition to the high plateau of Mexico, the Property lies centrally within the "Silver Trend" that runs from the northwest to the southeast through Durango State. Significant deposits in the region include Endeavour Silver's Guanacevi mine and Fresnillo's San Julian mine on-trend to the northwest, with Endeavour Silver's Pitarrilla Project approximately 50 kilometres (km) to the east. Pitarrilla is one of the largest undeveloped silver deposits in the world and was discovered by Perry Durning and Frank (Bud) Hillemeyer, Silver Dollar's technical advisors.Figure 2: Looking west into the Nora property with the Candy mine dump centre frame.To view an enhanced version of this graphic, please visit:https://silverdollarresources.com/images/Nora/Nora-Tour_050323.jpg

On April 20, 2023, Silver Dollar Resources Inc. has signed an option agreement and exclusivity agreement with Canasil Resources Inc.

Pursuant to the agreements, Silver Dollar will provide Canasil with a $200,000 non-interest-bearing loan (the "Loan") in return for a two-month exclusivity period to conduct due diligence on the assets of Canasil (the "Exclusivity Period") and an option to earn a 100% interest in Canasil's Nora property (the "Nora Option").

The purpose of the Exclusivity Period is to give Silver Dollar the opportunity to review Canasil's assets and consider a corporate merger (the "Transaction"). The Exclusivity Period can be extended for an additional 30 days if requested by Silver Dollar at no cost. Should Silver Dollar decline to propose a Transaction or the parties find the terms of a proposed Transaction unacceptable, then the Exclusivity Period will terminate, and Canasil will have 60 days to repay the Loan. Completion of a proposed Transaction will be subject to the support of key stakeholders, shareholder approval and regulatory approvals.

On April 11, 2023, Silver Dollar Resources Inc., further to its news release of Aug. 10, 2020, has delivered a notice to First Majestic Silver Corp. exercising its option to acquire a 100-per-cent interest in First Majestic's La Joya silver-copper-gold property. Located in the southeastern portion of the state of Durango in the Mexican silver belt, the property is composed of 15 mineral concessions totalling 4,646 hectares, and hosts the Main mineralized trend (MMT), Santo Nino and Coloradito deposits.

"We are proud to announce the exercise of the options to acquire La Joya from First Majestic. Our team has done an excellent job establishing a positive working relationship with the local communities and advancing the project, particularly when you consider we entered into this agreement during the height of COVID-19 restrictions," said Mike Romanik, president of Silver Dollar. "We have completed almost 6,000 metres of exploration drilling thus far, with results that include the discovery of the Brazo area, and continue with our new target development work. We would also like to thank the local communities for their co-operation and support."

On February 22, 2023, Silver Dollar Resources Inc. has provided an update on its new target development work at the underexplored Noria portion of the La Joya silver project located in the state of Durango, Mexico. "Our field crew has done a great job locating additional hot spots for drilling," said Mike Romanik, president of Silver Dollar. "It's intriguing to find such high-grade assays in and around some of these areas which have never seen a drill hole."

Geological mapping has now been completed to cover all of the Coloradito-Noria ground at a 1:1,000 scale. A total of 125 rock samples were collected from outcrop and rock dumps and submitted to the lab for analysis. Results for all samples have now been received, 79 sample assays were previously reported (see news release of Dec. 15, 2022), and the balance of the sample results are reported herein. The mapping and sampling program has identified five mineralized areas: the Verde and El Hueco areas were partially drilled by a previous operator, and the Dyke North, Dyke South and South-East areas have never been drill tested. A summary of each area is included herein.

December 15, 2022, New Target Development in Progress at Silver Dollar's La Joya Project https://silverdollarresources.com/index.php/news/352-new-target-development-in-progress-at-silver-dollar-s-la-joya-project

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