Dear Pilar Gold Shareholders and Interested Parties,

It has been a big month for Pilar Gold's Geology team led by Paulo Aguirre at Sertão. Last week we announced 0.5 metres at 78.6 g/t and 218 g/t at Stage 4 (Nilsson’s reef). On Wednesday Paulo informed us that SRSD0019 returned 2.5 metres at 33.8 g/t some 20 metres below the bottom of the old Stage 5 pit down plunge. The assays results are supporting our theory that once we drill in a regular grid at the high-grade ore shoot the super high grades mined at open pit would appear.

What is interesting is that Sertão was closed early by Troy Resources after it pulled out 256,000 ounces @ 29 g/t open pit between 2003-6 making it the highest grading mine in the industry 3 years running. Closing Sertão after such a phenomenal run is a bit like Michael Jordan or Don Bradman announcing their retirement at their 21st birthday party. Interestingly Troy drilled only 3 holes west of their open pit operation.  

We think Sertão is going to be special and that a lot of gold was left down plunge. Look at the map above that is west facing and shows hole SRT001 which was drilled by Yamana intersecting 2 metres @ 18.7 g/t at a depth of 550 metres 1.3km west of the pit. The green area is Stage 5 (Crew's Reef) and blue is Stage 4 (Nilsson's reef). Paulo thinks the orebody from this hole is the same we are drilling now in our current programme.  After adding the western extension tenement earlier this year Pilar has a 5km footprint down plunge.  Incredibly we were the only ones that bid for the extension showing how forgotten Sertão has become.  

If SRT001 is the same orebody then we could have a multi million ounce deposit on our hands with grades of 10-20 g/t which we will truck to our Pilar mill.  By blending high grade Sertão ore with our Pilar, MLZ and Caiamar mines in our 4,500tpd mill there is a chance we could double the grade and increase our ounces to 260 per day from the current 130 assuming a conservative 10 g/t feed from Sertão.  

In early 2019 we swapped our cornerstone stake in K92 when the opportunity to buy Sertão and Cascavel came up.  Our wives weren't happy at the time but we think Sertão could be another Kora.  Sertão's best quarter was an average grade of 45 g/t open pit and WMC's second discovery hole in 1989 was 6.1m @ 523 g/t from surface.  Look at SRSD020 that Paulo sent to my phone last night which also appears to have some very high grade mineralisation.  The other photo is SRSD019 which included half a metre @ 112.8 g/t underlying again the incredible grades that this deposit is capable of.