• Comprises over 12,000 hectares of high-potential epithermal targets  22 km’s southeast of Gold Resource Corporation’s currently producing Arista-Switchback mines and 8km to the northwest of  Gunpoint Exploration’s La Gitana project. 
   
• Epithermal veining and alteration are focused along a 17 km northwest-striking caldera structural margin that matches the  orientation of the high-grade polymetallic Au-Ag veins at Gold Resource Corp’s Arista-Switchback mines. 
   
• Important geologic indicators include the presence of multiple mineralized veins, paleo-hot-spring (sinter) deposits, iron-rich travertines, rhyolite domes, and hydrothermal breccias, all of which are locally anomalous to well-mineralized with Au-Ag and base metals.
   
• A newly discovered multiple-kilometer high-potential epithermal center was recently identified in the southern portion of the project.
   
• Flanking the caldera-margin structures to the east and southwest are Ag and base metal-rich skarns, the full extents of which are not yet known.
   
• Outside the areas of active mining the region has seen little systematic exploration, and the Yautepec project is the most highly prospective segment of the regional structural trend.

Caldera associated-tertiary volcanic rocks highly prospective for hosting epithermal precious metal mineralization, similar to nearby producing mines. The mapped altered rocks along the trend are part of a nearly 100km-long structural- volcanic corridor that extends from the San Jose mine (Fortuna Silver) to the northwest, to Chesapeake Gold’s Gitana project to the southeast. 

Trace of 20km Caldera Margin with high potential for undiscovered Bonanza grade epithermal Systems.

Two rounds of reconnaissance mapping and geochemical sampling that have revealed widespread metal anomalies in multiple areas on its Yautepec project. The exploration efforts are being focused on a 22-kilometer zone consisting of a geological structure similar to those known to host bonanza type epithermal systems at the nearby producing San Jose (Fortuna Silver Mines Inc., TSX: FVI) and Arista-Switchback (Gold Resource Corp., NYSE: GORO) mines.

A total of 162 samples were taken of prospective rock types, with a focus on high potential areas identified during the first period of work as discussed in a prior news release dated July 16, 2019. Significant new results include:

Yautepec Project: Significant 2^nd period sample results (ALS Labs)

To date, exploration sampling has yielded silver values up to 308 grams and gold values to 1.07 grams in an historically undocumented quartz vein system of impressive length with structural widths up to 7 meters, based on surface mapping to date. In tandem with the adjacent mineralized hot springs complex (sinter), we have generated a series of high priority drill targets after only two periods of fieldwork.

The majority of new samples were collected from a quartz vein system exposed along a 530-meter northwest-southeast trend, and as well from an immediately adjacent fossil hot springs system (sinter), developed along the same trend for 770 meters with widths up to 215 meters (~95,000 square meters minimum surface area).  These and prior results show that both the quartz vein system and sinter complex are mineralized and are logically genetically related. The presence of sinter indicates that the full vertical extent of potential bonanza style epithermal mineralization is conserved at depth, this inferred from the fact that most known systems of this style are not well mineralized within 150 meters of documented ‘paleo’ surfaces (Sillitoe, 2015*). The northwest-southeast structural trend of the quartz vein and sinter complex is similar to that of nearby producing mines on the Oaxaca epithermal Au-Ag belt, such as Gold Resource Corp’s [NYSE: GORO] Arista-Switchback mine, and Fortuna Silver Mines’ [TSX: FVI] San Jose mine.

The targets identified to date represent a small portion of the greater Yautepec project; multiple outlying exploration targets await further work which could potentially yield similar encouraging results.  Madoro has planned additional field work to test soil samples and is planning a maiden drill program to test high priority targets in areas with previously-encountered mineralization. 

Rob Johansing, M.S., C.P.G. Consulting Geologist, a qualified person in accordance with NI 43-101, has reviewed and accepted the technical information in this news release.