Veins in the Cerro Los Gatos deposit show textures and gangue mineralogy (local chalcedony and calcite, and quartz-replaced lattice texture calcite) that indicate a relatively high-level hydrothermal system in the boiling environment. Breccia with clasts of vein quartz indicates a protracted hydrothermal system during multiple faulting events, a positive sign for economic epithermal veins. It has been interpreted that mineralized-ore shoots may extend relatively far down dip, possibly to at least 250 m.

Mineralization at Cerro Los Gatos is characterized by, silver, lead, zinc, and copper sulfides and their corresponding oxides, along with fluorite, manganese, barite, and traces of gold associated with quartz and calcite veins. The veins vary in orientation from West-Northwest to Northwest to North-Northwest to North-Northeast and vary in thickness from 1 m to 8 m in outcrop but displaying much greater true thickness at depth. Study of the veins in hand specimens and thin sections suggest they are epithermal in origin and are likely of intermediate sulfidation composition.

Mineralization at the Cerro Los Gatos deposit is associated with a series of West-Northwest trending veins hosted in volcanic rocks on the footwall side of a listric normal fault contact. The hanging wall of the fault is comprised of epi-clastic sediments.

Economic mineralized grades are not present at surface; however, epithermal alteration textures are present and aided in ........

The underground mine design has been created to support a steady-state production rate of 2,500 tpd of ore. The sequence of mining has been planned to begin with the Central Zone (CZ), which has already been accessed via the existing decline developed down to the 1400 Level. The mine plan includes using cut and fill methods for the entirety of the CZ, in a top down sequence, starting in the central portion.

The NorthWest Zone (NWZ) has been planned to be mined concurrently with the CZ via longhole stoping methods with sublevels developed at 20 m vertical intervals. Portions of the NWZ thicker than 9 m (footwall to hanging wall) will be mined using transverse longhole mining. Areas less than 9 m in width will be mined using longitudinal longhole mining.

Production has started at the Los Gatos Project. A combined overhand and underhand approach have been chosen in order to optimize the mining sequence based on the existing excavation extents in order to meet the production and grade requirements of the mine. A mix of overhand and underhand
mining has been implemented, starting on the 1390 Levels in both the NWZ and the CZ.

Limited production began in November 2018 and has been able to continue at a constant ramp-up through to the present time. Due to the underhand approach, sill pillars are designed at necessary intervals in both cut-and-fill (CAF) and longhole stoping (LHS) blocks. The underhand longhole stoping areas require re-mining ........

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The Project processing facility is designed to treat 2,500 tpd of lead, zinc and silver material at an operational availability of 92 percent. The processing flow sheet for the Project is a standard flow sheet that is commonly used in the mining industry, including conventional flotation recovery methods typical for lead-zinc material.

Cyclone overflow, the grinding circuit product, is fed to the flotation plant. The flotation plant consists of lead and zinc flotation circuits. The lead flotation circuit consists of rougher flotation and three-stage cleaner flotation. The zinc flotation circuit consists of rougher flotation and five-stage cleaner flotation.

High levels of fluorine have been encountered in the ore from the mine since the original
feasibility study was completed and since initial construction of the mill was completed. The fluorine removal has required alterations to the milling process and an additional deep-froth flotation cell has been adde ........