The flagship property of Starcore International Mines Ltd. is the San Martin gold and silver mine. The mine has been in operation since 1993 and the facilities are processing gold and silver ore at a rate of 627 tpd, with the capacity of 1,100 tpd. The mine was acquired by Starcore in February of 2008 from Goldcorp who had obtained the asset through the takeover of Wheaton River. The mine is an underground epithermal deposit with gold quartz based limestone and for the year ended April 30, 2025 had an average head grade of 1.58 g/t gold and 14.27 g/t silver from 197,880 tonnes milled. The historical production of the mine is over half a million ounces. The San Martin mine complex consists of eight mining claims that cover 13,077 hectares  and all mineral titles and permits are held by Compañía Minera Peña de Bernal, S. A. de C. V. (CMPB), a direct, wholly-owned subsidiary of Starcore.

Geology & Mineralization

High grade mineralization was discovered at San Martin in the 18th Century, and is reported to have been mined over a period of 40 years; however, no production records exist. Between 1900 and 1924, an estimated 250,000 tonnes grading 15 g Au/t and 100 g Ag/t was reportedly mined. Mineralization at San Martin occurs in an epithermal, low-sulfide, quartz carbonate, fracture-filling vein that strikes approximately N40°-60°E and 50°-90°SE. The San Martin veins are typical of most other epithermal silver-gold veins in Mexico, as they are located mostly in the Upper Cretaceous black limestone and calcareous shales of the Soyatal-Mezcala Formation. The sediments are covered by Tertiary subvolcanic rhyolite flows, pyroclasts and epiclasts.

The San Martin vein itself is known to be 2 km underground. It has a width of 1.5 to 30 meters and an average of approximately 4.0 meters. A secondary mineralized vein is in both the footwall and the hanging wall of the San Martin structure. The Mineralization in San Martin is classified into two parts: 1) the clean mineral, it is relatively easy to recover and 2) the carbonaceous mineral.

Exploration & Development

The San Martin mine properties are comprised of eight mining concessions covering 13,077 hectares. In addition to the ongoing mine exploration and development that is currently being performed in the mine, management is continually assessing the potential for further exploration and development of the San Martin properties and constantly modifying the exploration budget accordingly.

For the period ended April 30, 2025 surface and underground exploration programs were conducted using both company and contractor drill rigs. From May 1, 2024 to April 30, 2025, a total of 5,601.5 meters was explored with BDH, of which 3,483.5 meters were drilled with the Company’s own machines and 2,118 meters were drilled by contracted machines.

The exploration highlights for this stage included three principal areas: the 30 West Area, the 29 West Area, and a geophysical anomaly.

1) 30 West Target: This target is correlated with the extension north of the 29 West area. During this year, the Company will continue drilling the NW extension for around 150 m. The potential to the north-west is open for around >1km.

The 30 West target corresponds to the high-grade breccia known in the 29 area. The orebody has 230 m of length and the projection of the orebody is open to north-west and we continue to search the extension.

2) 29 West Target: The objective of the geological exploration was to continue investigating the orebody identified last year within the 29 area. The exploration focused on the lower levels near the 28-29 fault, where this zone begins.

The 29 West target corresponds to the lower portion breccia, we will continue to search the extension to deep near to the 28-29 fault.

3) Geophysical Anomaly: Currently, a reinterpretation of the regional magnetometry data at the San Martin Mine was carried out. This resulted in the identification of two significant anomalies that correlate with the main anomaly hosting the mine’s mineralization. One is located in the northwest portion of the mine and extends approximately 2.2 km in length. The second anomaly is situated in the southeast portion of the San Martin Mine and measures around 1 km in length.

To follow up on the exploration, electrical geophysics is planned in order to better delineate and more precisely define the targets for exploration.

In March, 2025 Starcore announced the results of an in-plant test of the CIL (Carbon-in-Leach) circuit to treat carbonaceous ore at its San Martin mine and processing plant. The Company has been diligent in its efforts to obtain optimum recovery of gold and silver from the carbonaceous ore in the reserves at San Martin. Kappes, Cassiday & Associates (“KCA”), an engineering firm headquartered in Reno, Nevada that specializes in all aspects of heap leaching and cyanide processing, conducted the in-plant test for one month and processed approximately 2000 tonnes of carbonaceous ore, with a gold grade of 2.2 g/t and silver 20.7 g/t . The test confirmed that the plant, as currently configured, can recover over 80% of the gold and 63 % of silver from these ores. Carbonaceous ore, which is currently being mined from selected stopes in the San Martin underground area, can be processed in parallel with the normal oxide ore using an existing ball mill and leach tanks which are otherwise not being used. Further plant modifications will be undertaken by the end of 2025, which will allow processing of carbonaceous ore at the full plant capacity of 800 tonnes per day.

For the first quarter ended July 31, 2025 166oz AuEq were produced with the CIL plant. From a milling of 5,370 tons of stockpiled ore grading 1.91 g/t of gold (75% recovery) and  17.5 g/t of silver (65% recovery) were captured. The CIL plant represents a great alternative to process ore that cannot otherwise be treated by cyanidation.

Reserves & Resources

San Martin Mine Reserves Estimated,
Proven & Probable (Effective date April 30, 2025)

Assumptions

• Mineral Resources estimates provided above have an effective date of April 30, 2025
• Measured and Indicated Resource estimate are inclusive of the Mineral Reserve estimates.
• Gold equivalents are based on a 1:87 gold: silver ratio. Au Eq= gAu/t + (gAg/t ÷87)
• Metal prices considered for Mineral Resource estimate were $2273/oz Au and $26. oz/Ag
• Minimum mining factor widths were 1.5 meters.
• Dilution factors is 15%. Dilution factors are calculated based on internal stope dilution calculations
• Metallurgical Recoveries were 86% gold and 55% silver,
• Metallurgical Recoveries were 70% gold and 55% silver (Carbonaceous Deposit)

Technical Reports