Agave Silver Corp. CRMXF

July 30, 2012 Sedar Filing

[robey743]

Excerpt from MA&A

 

Based on the analysis and comments provided by Dr. Derek McBride in his summary

report the Company is convinced of the exploration potential at Nuevo Millenio. Dr. McBride has noted that Nuevo Milenio is a property of merit of particular interest. The 2012 updated Independent Mineral Resource Estimate has identified 2,829,000 tonnes containing 9,660,000 ounces silver equivalent which is now in the Measured and Indicated categories and 500,000 tonnes containing 1,570,000 ounces silver equivalent in the inferred category. The property contains a minimum of seven mineralized zones; previous drilling has provided resources on four zones and indicated significant targets on all zones. The 2011 drill program provided a new resource on Once Bocas South which had not previously been drilled. All the mineralized zones with significant data suggest that the best mineralization occurs within 100 metres of surface and forms hills.

The 2011 drill program was based on a geological interpretation employing all historical exploration data up to 2008 including widely spaced drill holes. In-fill drilling and a portion of the step out drilling generated data which upon review did not support the original geological interpretation which formed the basis of the 2008 Inferred Mineral Resource Estimate. As a result, the in-fill drilling did not consistently generate assays to support the previously estimated grades and as a result the average grade decreased. A review of the data indicates that Nuevo Milenio is a near surface epithermal system with mineralization occurring within 150 metres of surface.