Mercedes Mine

Location

Junín Province, Peru

Commodity

Gold (with silver, lead, copper, zinc byproducts)

Stage

Pre-Production / Advanced Exploration

Ownership

Basic Minerals (Peru), controlled by San Maurizo Mines Inc. (Canada)

Operator

Hudson Heartland

License Type

Historic Resource mining license (Peru small-scale designation)

Overview

The Mercedes Project is a 1,096-hectare high-potential gold asset located in Junín, Peru, approximately 220 km east of Lima. Hudson Heartland, through its partnership with San Maurizo Mines Inc. and Basic Minerals, is advancing Mercedes toward production under Peru’s regulatory pathway for junior operators.

This site leverages existing infrastructure, a signed community agreement, and a nearby toll mill just 12 km away—allowing the company to minimize capital expenditures while achieving early-stage production within 12 months.

Resource Estimate

 – Proven: 12,747 tonnes @ 2.35 g/t Au (2,451 oz Au Eq.)
– Probable: 38,064 tonnes @ 3.60 g/t Au (7,222 oz Au Eq.)
– Possible: 251,000 tonnes @ 1.50 g/t Au (18,126 oz Au Eq.)
– Combined Historic Estimate: ~300,000 tonnes across six near-vertical gold-bearing veins

Processing Strategy

Mercedes ore will be shipped to a nearby toll milling facility during initial phases, avoiding the need for on-site processing construction. This approach significantly reduces capex while validating grades and recovery rates before investing in permanent infrastructure.

Development Plan:

 – Access road and portal development already underway
– First-year plan includes: advanced exploration, infrastructure rehabilitation, and initial stope development
– Goal: reach operational production at 100 tons/day capacity within 12 months
– Long-term development will focus on stope delineation and underground expansion

Economic Model:

 – Gold Price: $3,036.70 USD/oz (2025 benchmark)
– Operating Cost: $270 USD/tonne
– Capital Requirement: $1M USD (initial placement)
– IRR: 963% (unlevered model)
– NPV: $12.28M USD
– Forecast Gross Revenue: $97.8M USD over life of mine
– Forecast Net Earnings After Tax: $15.55M USD

Strategic Highlights:

 – Fully permitted under Peru’s small-scale mining regulations
– Signed community agreement
– Local toll milling access
– Staged expansion opportunities to the north of the license
– Business model built on fast-track cash flow and modular growth

Status

Initial development underway. Raising $1M USD via private placement to finalize access, exploration program, and first production phase.

Technical Contact

Eric Hinton, P. Eng., FCIM

Hudson Heartland – Latin America Operations