Skarn-style mineralization has developed in limestone and dolomite of the Morelos Formation, limestone and sandstone of the Cuautla Formation, and intercalated sediments of the Mezcala Formation where these rocks have been intruded by Paleocene granodiorite stocks. Skarn-hosted mineralization has developed along the contacts of the intrusive rocks and the enclosing carbonate-rich sedimentary rocks.

Three major deposits and one smaller deposits have been delineated to date: Major deposits include - El Limón (includes El Limón Sur), Guajes, and Media Luna and a smaller deposits Sub-Sill. Gold and silver mineralization at ELG deposits extends over 3,700 m along strike with widths up to 90 m. Copper, gold and silver mineralization at Media Luna covers at least an area of 1.4 km x 1.2 km, with widths ranging from 4 m to greater than 70 m in thickness.

At the Sub-Sill area, several skarn zones have been identified along the contacts of the carbonate rich sediments and marbles of the Cuautla and Morelos formations and sills fingering out from the main granodiorite stock. High grade gold mineralization has been intercepted in all the different skarn horizons. Within the skarn zones individual shoots of mineralization vary in strike length from approximately 50 meters up to 200 meters, with apparent thickness varying from 2 meters to 36 meters.

El Limón
Gold mineralization at El Limón occurs in association with a skarn body that was developed alon ........

Mining at the ELG Mine Complex is being carried out by two methods, open pit method in the Guajes, El Limón and El Limón Sur pits and by underground for the ELG UG mine currently focused on the Sub Sill zone.

The ELG deposit is being mined principally by open pit mining methods. Underground mining is underway in the ELG UG (Sub-Sill zone), which is located at a depth where open pit mining is not economic due to adverse strip ratio.

The ELG pit slopes are comprised primarily of competent rock. Weaker rock has however been observed in close proximity to the known major faults and near surface topography.

ELG OPEN PIT
Surface haul roads are in general designed 25 m in width (including allowances for a drainage ditch and shoulder safety berm) at gradients up to 10.5% to support two-way uninterrupted haulage by 90-tonne class mining trucks. Because of the steep terrain, construction of mine access and haul roads is challenging. To minimize cut excavations mine roads utilized for pit access only are generally designed 18 m in width at gradients up to 10.5%, which is considered adequate for single lane equipment traffic. Pullouts are required for large vehicle passing.

All pits are designed with 7 m bench heights, which match the vertical dimension of the mineral resource blocks. Pit walls are designed with catchbenches at 14 m intervals (i.e., double benched) or at 21 m intervals (triple benched). In general, based on geotechnical ........

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