Mineralization in the Nuestra Señora area includes mineralized calc-silicate skarns, carbonate replacement deposits, veins, and breccia-hosted deposits that occur within limestone and granodiorite. Pb-Zn-Cu-Ag mineralization is primarily associated with variably retrograde-altered garnet-pyroxene exoskarn with lesser mineralization within pyroxene-garnet endoskarn in the Nuestra Señora mine. Within the Nuestra Señora Main Zone, post-skarn brecciation and calcite emplacement appear to be contemporaneous with mineralization, with sulfides occurring as fracture-fill and large “clots” within the calcite-filled breccia matrix.

Pb-Zn-Cu-Ag mineralization at Nuestra Señora is primarily associated with variably retrograde-altered garnet-pyroxene exoskarn (bedded limestone protolith) with lesser mineralization within pyroxenegarnet endoskarn. In general, exoskarn mineralization occurs within preferential horizons in the general stratigraphy which strikes northwest and dips to the northeast 30-50o. Thrust faulting sub-parallel to bedding has been proposed to create more favorable fluid pathways and localize mineralization.

Within the Nuestra Señora Main Zone, post-skarn brecciation and calcite emplacement appear to be contemporaneous with mineralization, with sulfides occurring as fracture-fill and large “clots” (up to 10cm across) within the calcite-filled breccia matrix. The breccia texture can be coarse with clasts greater than one meter in width. Though there are some weak disseminated sulfides within the clasts, the majority of sulfides occur within the highly irregular calcite-quartz-chlorite matrix.

In contrast to the skarn-hosted mineralization within the Nuestra Señora mine area, carbonatereplacement mineralization occurs at the Candelaria mine located about 200m to the northeast and 150m higher in elevation than the Nuestra Señora mineralization. Highly irregular, massive-sulfide base-metal bodies, that can be over one meter across, occur within a coarse crystalline, relatively unmineralized marble which formed by thermal metamorphism distal to the skarn alteration. The sulfide/marble contacts can be knife sharp. The sulfide mineralization is highly erratic, although there is evidence that the more significant mineralization is localized along southeast-dipping structures.

Deposition of sulfides occurred during several cycles, with the presence and relative abundance of chalcopyrite with sphalerite and galena indicating fluctuating temperatures during formation. The order of deposition of the sulfides appears to be pyrite, sphalerite, chalcopyrite, galena, and tetrahedrite. The distribution of silver may be related to deposition of copper and not lead. Deposition of silver, copper, and lead probably occurred independently to that of zinc.

The Nuestra Señora, Santo Domingo, and Santa Teresa deposits all have surface expressions. Scorpio found two additional large mineralized zones – Hoag and Sept 9 – adjacent to the main Nuestra Señora zone and between Nuestra Señora and Santo Domingo-Santa Teresa that do not crop out. Scorpio’s initial interpretations postulated that a series of stacked thrust faults provided the main conduit for mineralizing fluids. Subsequent deformation along the thrust faults created dilational zones, which provided structural traps for the emplacement of mineralization. The Sept 9 Zone appears to be a mineralized feeder for emplacement of mineralization into the Hoag and Santa Teresa zones. Recent reinterpretation suggests that the Main, Hoag, and possibly the Santa Teresa deposits appear to have been part of the same, formerly contiguous mineralized zone that has subsequently been offset by a series of northeast-striking, normal and/or strike-slip faults (i.e. Hoag fault). This interpretation is new and requires more investigation and modification.

Mineralization in the Hoag Zone consists predominantly of zinc and lead with over 100 g Ag/t and only minor amounts of copper. The zinc and lead sulfides in the Hoag Zone are generally finer grained, and zinc tends to be more enriched and silver slightly less enriched relative to the Nuestra Señora Main Zone. Mineralization in the Sept 9 Zone consists of coarser-grained sphalerite, galena, and chalcopyrite, similar to that at Nuestra Señora, with higher grades of silver and copper. The mineralization is located at the contact of a skarn and a granodiorite body.

Carbonate replacement mineralization occurs in re-crystallized limestones near or at the faulted contact between granodiorite and limestone at the Candelaria, Santo Domingo, and Santa Teresa deposits, with most of this mineralization occurring at Candelaria. At Candelaria, irregularly shaped massive sulfide pods vary considerably in size, shape, and orientation, which makes it difficult to define them with widely spaced core drilling. The pods are cut and displaced by steep north-northeast-trending faults. There is a spatial relationship between mineralization and a quartz-feldspar porphyry sill or dike that is from 2 to 10m thick and is predominantly sub-parallel to bedding. In addition to the massive sulfides, disseminated mineralization occurs along the interface between endoskarn and exoskarn developed at the contact between the limestones and intrusion. It is associated with retrograde skarn and mylonitic material within the faulted contact.

The Santo Domingo deposit is located on the north side of the Habitas River, 300m northeast of the Nuestra Señora mine portal. Santo Domingo is situated at the intersection of a regional N50°W-trending fault with the northeast-trending Hoag fault. Chimney and manto-type mineralization is locally disrupted and overprinted by intense silica flooding and discrete quartz veining that contains coarse sphalerite, chalcopyrite, minor pyrite, and locally enriched gold.

Santa Teresa is located about 150m northeast of Santo Domingo and about 200m northwest of Candelaria. The surface expression of skarn mineralization extends over a width of 100m along the river. Alteration consists of epidote, actinolite, tremolite, hornfels, grossular garnets, and silicification.

In December 2017, the Nuestra Señora mine was placed on care andmaintenance. Production from the Nuestra Señora mine has stopped although a resource remains at the property.

Nuestra Señora underground mine development commenced in 2005, and prior to the commissioning of the process plant in May 2008, approximately 87,000 tonnes of ore had been stockpiled on surface. Since attaining commercial production of the process plant in January 2009, the Nuestra Señora mine has been the sole source of ore feed for the plant. Mining at Nuestra Señora uses mechanized mobile mining equipment, principally twin-boom jumbos, 6yd3 scoop trams, production drill rigs, and rigidbody highway trucks.

Complex geometries of the mineralized bodies make it imperative to employ high-density definition drilling techniques to determine the extents of the mineralization. During development, ore-control definition is performed by drilling 12m long holes on approximately 4m centers. Samples are taken from the cuttings of each 1.5m of drill steel and are assayed in the operation’s laboratory. This detailed sampling control allows for more appropriate development, improving mining recovery and minimizing dilution.

As successive levels are developed, each mineralized body is tested for continuity and size. The mining method employed for each mineralized body is determined by its geometry. Predominantly long-hole or cut-and-fill stoping is designed for production; however, shrinkage stoping via hand-held air-leg drill mining is available for implementation where warranted.

Waste rock from access development is used as fill material in successive cut-and-fill lifts and exhausted long-hole stopes. Tailings are recovered from the Nuestra Señora process plant and delivered by truck to exhausted long-hole stopes for use as fill along with development waste rock.

The Nuestra Señora mine has several ores of differing metallurgical characteristics. Base metal and silver grades vary, as do the ratios of each metal to the others. Mineralogical characteristics such as species, fluid inclusions, and grain size limit the flotation process selectivity achievable on a production scale.

The Nuestra Señora process plant is a conventional concentrator producing zinc, lead, and copper concentrates.