The orogenic deposit model for gold mineralization in the Guerrero Gold Belt (GGB) is considered to be associated with a Pacific Rim style of mineralization as described by Corbett (1998, 2009). GGB mineralization is related to a late Cretaceous to Early Tertiary age skarn porphyry continuum emplaced during a 62 to 66 million year old intrusive event associated with Laramide Compressional Orogeny. Early stage, essentially barren calc-silicate skarn alteration associated with one or more intrusive phases is thought to have developed as a contact metamorphic aureole surrounding hydrated intrusive bodies.

Gold deposition at Ana Paula tends to occur both contemporaneous with and post intrusion, exhibiting at least two mineralizing events. The earliest consists of Au-As-(Bi-Te) disseminated mineralization characterized by progressive mineralization over time through deposition of gold in breccias, stockworks, contact skarn (both endoskarn and exoskarn) and other replacement bodies.

The second mineralization event (Au-Ag-Pb-Zn Hg-Sb) perhaps related to the epithermal style of alteration may be a later hydrothermal phase of the earliest intrusive event (a retrograde overprint?) or may be younger.

The exact timing of gold deposition and the mechanism of deposition within the GGB and at Ana Paula are not yet fully understood and appears to vary among the known deposits, where each deposit shares important characteristics and differences. Intrusions at Ana Paula have been dated at 66.0 – 66.7Ma ± 0.7- 1.8Ma, Valencia, V.et al, (2008), which may also date the earliest onset on mineralization.

Results from Ana Paula suggest that the bulk of the gold deposition occurs with the dominant (earlier?) AuAs-(Bi-Te) mineralization, and is largely hosted in a northerly trending and westerly dipping corridor of intrusive rocks, at the contacts with sedimentary rocks and hornfels, and within important breccia bodies. Gold deposition within the high grade core of the deposit is structurally controlled, located at the intersection of at least two fault structures and the host stratigraphy. Both skarn type massive and disseminated sulphide (arsenopyrite + pyrite) replacements and some epithermal overprinting have occurred but the extent and relationship to the oldest intrusive rocks have not been studied in detail.

Economically significant gold deposits in the GGB are hosted within a variety of structural, lithological and/or geochemical traps and frequently occur in clusters about a northwesterly trend of intrusions of similar age and provenance which are defined by a co incident northwest trend of magnetic anomalies. The trend is known to exceed 55 km along strike and has become known the Guerrero Gold Belt.

Ana Paula is located along the northwesterly trend of the GGB where it straddles a boundary between two older tectonic sub-terranes; the Teloloapan volcanic-volcaniclastic arc assemblage to the west and the Platform sequence of thick carbonates (limestone and dolomite) overlain by younger marine deposits to the east. The stratigraphy of both sub terranes was deformed during the compressive Laramide orogeny and subsequently intruded by an early Tertiary, ±62-66 million years, calc alkali porphyritic magmatic event associated with an essentially barren skarn and hornfels contact metamorphism. This intrusive event is currently thought to be associated with the timing of mineralization responsible for the gold deposits and showings of the GGB. At least two and possibly three mineralizing events are observed at the scale of the property, but the relationships and timing of these events is not currently known.

Mineralization at Ana Paula occurred during at least two different events or stages. The first event is characterised by gold-arsenic (bismuth-tellurium), (or Au-As-(Bi-Te)), where mineralization is associated with intermediate intrusions emplaced into limestone. The second event locally cuts the first, and is characterized by gold-silver-lead-zinc-mercury antimony (or “Au-Ag-Pb-Zn-Hg-Sb”), containing locally zoned coarse sphalerite. There are also various quartz-calcite veins with epithermal textures, but the relative timing of these veins remains unclear.

Mineralization is hosted in both the sediment intrusive domain and the intrusive domain.

Open pit mining was selected as the method to examine the development of the Ana Paula Project at this time. This is based on the size of the resource, tenor of the grade, grade distribution and topography.

The deposit will be a conventional, open pit, truck-and-shovel operation. A mill feed of approximately 5,000 t/d is planned over an approximate 8-year mine life. There will be pre-strip material in Year -1, with a full production rampup in year 1.

Pit phase designs were developed for Ana Paula using the three pit optimization shells selected earlier.

Equipment sizing for ramps and working benches is based on the use of 63 t rigid frame trucks. The sizing of the ramp is actually sized for the smaller capacity 56 t rigid frame units, as they are slightly wider than the 63 t rigid frame versions. The operating width used for the truck is 5.7 m. This means that single lane access is 17.8 m (2x operating width plus berm and ditch) and double lane widths are 23.5 m (3x operating width plus berm and ditch). Ramp gradients are 10% in the pit for uphill gradients and 8% downhill on the dump access roads. Working benches were designed for 35 to 40 m minimum on pushbacks.

Ana Paula is designed with three phases. The first phase is a starter phase designed to provide early higher grade material for the plant and minimize strip ratio. The second phase expands on the first targeting the larger portion of the ore body. The final phase requires a significant push back from the upper elevations due to local topography.

The Ana Paula processing facility will recover gold and silver by gravity concentration, flotation, oxidation of flotation concentrate and cyanidation of the oxidized concentrate by the carbon-in-leach process. The mill is designed at a nominal capacity of 5,000 t/d at 92% availability. Gold and silver adsorbed on activated carbon are desorbed into solution and then recovered by electrowinning. The recovered metals are smelted into doré bullions, which are the final product of the operations.

ROM ore will be transported by 56-tonne haul trucks from the mine to the primary crusher and dumped into the primary crusher dump hopper with an approximate 120-tonne live capacity (2 truckloads) through a stationary grizzly (opening: 800 mm).

The crushed ore is discharged to the transfer conveyor, which is also the stacking conveyor feeding the coarse-ore stockpile. A self cleaning magnet followed by a metal detector are provided to remove any tramp steel before stockpilin ........