Zone 120 in the eastern portion of the San Rafael deposit contains silver-copper mineralization within garnet-pyroxene-calcite skarn. The strong metasomatic alteration and the close spatial relationship with a large dioritic intrusion suggest that Zone 120 represents a proximal skarn deposit. El Cajón is a proximal silver-copper skarn related to an adjacent nearly cylindrical diorite intrusive body. Mineralization at El Cajón is replacement type and occurs as horizons in recrystallized limestone which are connected by mineralized zones localized by steeply dipping contacts, faults and fractures.

Zone 120 occurs not as a single horizon, but as multiple bedding- and intrusive-contact-related mineralized horizons. As currently defined, the Zone 120 mineralization occurs within a rock volume that is approximately 600m long, 250m wide and extends to a depth of about 350m below the surface. It strikes in a direction of 330°, and below the massive sulphide, the bedding-related mineralization dips steeply to the northeast at approximately 50°. The Zone 120 mineralization is interpreted to occur along near-vertical contacts between diorite and skarn-altered lime rich volcarenites in the lower parts, and in quartz-sericite-pyrite-altered volc-arenites in the upper portions. The quartz altered material is now referred to as hornfels, differing from earlier interpretations. Hornfels seems to be developed in carbonate poor rocks whereas the more highly mineralized skarn is deve ........

The EC120 project is a part of Cosalá operations. EC120 includes both El Cajón Mine and Zone 120 deposits.

The EC120 Project considers underground mining at both the El Cajón and Zone 120 deposits. These deposits are located approximately 1.5km from each other on surface and limited portions of the Mineral Resources underground, are as close as 600m.

The El Cajón underground mine is accessed by an existing decline that portals at surface near the El Cajón administration building. The Zone 120 underground mine will be accessed from the existing development at the San Rafael mine, which is accessed by an existing decline that portals at surface near the San Rafael surface infrastructure. Access to the stoping areas at the EC120 Project is provided by primary ramp and lateral access development. Ramp development is limited to a maximum gradient, both positive and negative, of 15% to allow mobile equipment to work efficiently.

The El Cajon mine decline development continues from the existing main decline to access the stoping areas defined by the Mineral Reserves. There are two main stoping areas in the mine that are both accessed from the same decline. The ventilation system consists of a series of vertical raises developed both conventionally and by a raise bore. The RB-01 bored raise is approximately 84m and the RB-02 bored raise is approximately 161m.

The Zone 120 mine ramp access extends from an area near the existing Upper Zone in ........

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