Questcorp and Riverside Resources Commence Phase 2B Program at La Union Project, Sonora, Mexico

Questcorp begins Phase 2B drilling at La Union, targeting high-grade gold and silver zones.

What the company is saying

Questcorp Mining Inc. and joint venture partner Riverside Resources Inc. have commenced Phase 2B exploration at the La Union Project in Sonora, Mexico, following the end of the rainy season. The company emphasizes the switch to reverse circulation (RC) drilling, which is expected to improve efficiency, penetration rates, and cost-effectiveness compared to diamond drilling. Phase 2B will focus on two main targets: Luis Hill, where a 1 km IP anomaly aligns with a prior discovery hole of 0.3 g/t gold over 42 metres, and the Union Mine, where previous chip-channel sampling returned 20.2 g/t gold, 226 g/t silver, and 2.7% zinc over 30 metres. The release highlights the near-surface nature of La Union's carbonate replacement deposit (CRD) zones (150–250 metres deep), contrasting this with much deeper targets at other projects in the region. Saf Dhillon (President & CEO) and John-Mark Staude (President & CEO of Riverside) are both quoted, underscoring confidence in the technical approach and the project's potential. The company also details its 100% interest in 1,168.09 hectares at North Island Copper (Vancouver Island, BC) and an option to acquire 2,520.2 hectares at La Union, both subject to royalty obligations.

What the data suggests

The announcement confirms that road work and drill pad construction are underway and that an RC rig has been secured for Phase 2B drilling at La Union. The Luis Hill target is defined by a 1 km long IP chargeability anomaly, with Phase 1 drilling having intersected 0.3 g/t gold over 42 metres; this zone remains open for further exploration. At the Union Mine target, chip-channel sampling previously returned 20.2 g/t gold, 226 g/t silver, and 2.7% zinc over 30 metres, and Phase 2B drilling will test an 80 metre step-out along strike. Planned drilling includes a near-vertical, 350 metre deep hole at Luis Hill. The company holds 1,168.09 hectares at North Island Copper and an option on 2,520.2 hectares at La Union. No new assay results or resource estimates are disclosed; all grades and widths cited are from prior work. The technical disclosure is specific regarding targets, methods, and property size, but economic and financial data are absent, and the main value driver remains future drill results.

Analysis

The announcement provides a detailed operational update on the commencement of Phase 2B drilling at the La Union Project, with specific technical targets and previously reported sampling results. The narrative is generally positive, emphasizing the expected benefits of switching to RC drilling and the potential for larger programs, but these are forward-looking statements not yet substantiated by new results. While the start of road work and drill pad construction is a realised milestone, the main value drivers—new drill results, resource estimates, or economic studies—remain in the future. The release references high-grade historical sampling and outlines ambitious exploration plans, but does not present new assay data or resource upgrades. The capital intensity flag is triggered by the initiation of drilling and infrastructure work, with no immediate earnings or resource impact disclosed. Overall, the tone is optimistic and somewhat promotional, but the actual progress is limited to early-stage fieldwork.

Risk flags

• ●There is significant technical risk: the planned RC drilling at both Luis Hill and Union Mine is targeting anomalies and extensions based on prior results, but no new assays or mineralized intersections have yet been delivered in this phase. If drilling fails to confirm or extend mineralization, the project's perceived potential could diminish.
• ●The company is reliant on historical high-grade chip-channel sampling (20.2 g/t Au, 226 g/t Ag, 2.7% Zn over 30 m) and a single prior drill intersection (0.3 g/t Au over 42 m) to justify ongoing work. Without new resource estimates or compliant mineral inventories, there is no basis for economic valuation at this stage.
• ●Operational execution risk is present: while RC drilling is expected to improve efficiency and cost, the transition from diamond drilling introduces variables in sample recovery and geological interpretation, especially in faulted ground. If RC drilling does not perform as planned, delays or increased costs could result.
• ●The La Union Project remains subject to a royalty obligation and is still under option, not full ownership, introducing potential title and economic risk if option terms are not met or if the royalty proves burdensome should a discovery be made.

Bottom line

Questcorp's commencement of Phase 2B drilling at La Union marks a tangible operational step, with the company now actively testing high-priority gold and silver targets defined by past sampling and geophysical anomalies. The technical narrative is credible, with specific targets, grades, and planned drill depths disclosed, but all cited mineralization figures are from prior work—no new assays or resource upgrades are included in this release. The switch to RC drilling is positioned as a cost and efficiency improvement, but its effectiveness will only be proven by upcoming results. Investors should focus on the outcome of this drilling, as future value depends entirely on whether new intersections confirm or extend the high grades previously sampled. Until new drill results are published, the project's economic potential remains speculative. The most important takeaway is that while groundwork and drilling are now underway, all material upside hinges on assays yet to be delivered.

Announcement summary

(CSE: QQQ) (OTCQB: QQCMF) (FSE: D910) Questcorp Mining Inc., together with joint venture partner and operator Riverside Resources Inc., announced the commencement of Phase 2B at the La Union Project in Sonora, Mexico. Riverside has begun road work and drill pad construction following the rainy season and has secured a reverse circulation (RC) drilling rig to improve drill efficiency, penetration rates, and hole depths. Phase 2B will initially target the Luis Hill and Union Mine areas. Drilling at Luis Hill will focus on an Induced Polarization (IP) chargeability anomaly extending over 1 km along strike, coinciding with a sediment-hosted gold mineralization discovery hole of 0.3 g/t gold over 42 metres identified in Phase 1. The mineralized zone at Luis Hill remains open along strike and at depth. At Union Mine, drilling will follow up on the projected extension of the structure where chip-channel sampling returned 20.2 g/t Au and 226 g/t Ag with 2.7% Zn over 30 metres. Saf Dhillon, President & CEO of Questcorp, stated that the switch from diamond drilling to RC drilling is expected to significantly increase penetration rates and provide a more cost-effective way to drill at Union, potentially enabling larger programs in the future. During the rainy season, the team reviewed carbonate replacement deposits (CRD) in the western Cordillera and noted that La Union's CRD zones are near surface (150 to 250 metres), compared to depths of 300 to over 1000 metres at other projects. The Phase 2A exploration program outlined a large IP target at Luis Hill and demonstrated continuity of mineralization at Union. Phase 2B will test both targets with RC drilling, including a planned near-vertical, 350 m deep drill hole at Luis Hill. At Union Mine, Phase 2A hole UND26-013 intersected the continuity of the historic Sproul manto mine, with anomalous Pb and Zn values indicating proximity to the replacement body, and chip-channel sampling returned 30 m grading 20.2 g/t Au and 226 g/t Ag. The Phase 2B drilling at Union Mine is planned to test the continuity of the structure at an 80 m step-out along strike, supported by ground magnetic geophysics. Questcorp holds an undivided 100% interest in mineral claims totaling 1,168.09 hectares comprising the North Island Copper property on Vancouver Island, British Columbia, subject to a royalty obligation. The company also holds an option to acquire an undivided 100% interest in mineral claims totaling 2,520.2 hectares comprising the La Union Project in Sonora, Mexico, subject to a royalty obligation. The technical content of the release was reviewed and approved by R. Tim Henneberry, P. Geo (BC), a Director of the Company and a Qualified Person under NI 43-101.

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