The Aguablanca deposit consists of magmatic sulphide mineralization hosted by the gabbro and gabbro-norite units. Sulphide mineralization is predominantly represented by pyrrhotite, pentlandite, chalcopyrite and pyrite with minor marcasite and covellite. Magnetite is often present. Lesser amounts of platinum group minerals (PGM) and gold are also associated with the sulphide minerals.

Mineralization is generally hosted within the Aguablanca Stock in a chaotic magmatic breccia, rich in fragments, in the matrix of which can be found semi-massive sulphides. The mineralization often grades laterally into more continuous disseminated sulphides and irregular patchy mineralization with variable textures.

The mineralized body consists of two sub-parallel zones of mineralization, elongated in an east west direction and dipping subvertically. The larger South or Main Zone can be traced for 400 metres along an N115º orientation and dips between 75º and 80º to the north. This zone is over 100 metres thick and extends to a depth of more than 600 metres. The mineralization has a plunge of N65º to N80ºE. The North Zone contacts with the surrounding metamorphic country rocks and strikes N115º and is approximately 125 metres long in the strike direction, 50 metres thick and extends to a depth of more than 300 metres.

The deepest portion of the South Zone (called the deep zone) appears to have an average true thickness of approximately 50 metres. The deep z ........

Mining operations use a conventional drill and blast, and truck and shovel fleet. The pit is mined with 8 m benches and the final slopes are designed with a double bench configuration. Waste rock is stacked to the immediate north of the open pit and the waste dumps form the downstream wall of the tailings impoundment. Run-of-mine ore is stockpiled, blended and then primary crushed. Tailings from the process plant are pumped to a fully lined tailings impoundment to the north of the plant site area. Decant water from the tailings dam is returned to the process plant.

First stope production from the initial sub-level cave is due to commence following cessation of the open pit. A deeper sub-level open stoping zone will also be developed and will enter into production in 2017.

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