The mineralization identified to date on the property is consistent with a supergene enrichment blanket hosted in a sandstone-quartzite package of Soraya Formation associated with an Andean-type copper- molybdenum porphyry system.

The most important mineralization encountered to date on the property is a tabular body of fracturecontrolled and disseminated chalcocite and chalcopyrite with minor molybdenite-coated fractures overlain by a barren, leached zone of variable thickness. The tabular zone strikes 50 degrees and dips 20 degrees to the east over an area 1.2 kilometres long and 1.2 kilometres wide. The supergene chalcocite mineralization has a true thickness of 40 to 80 metres. Associated with the chalcocite mineralization is weak sericitization, chloritization, and silicification of arenite and quartzite. The strongest chalcocite mineralization is associated with brittle faults. Below the chalcocite mineralization, low grade disseminated chalcopyrite, bornite, and molybdenite mineralization occurs. Altered, weakly-mineralized porphyritic felsic intrusives are associated with the hypogene mineralization. Unaltered, unmineralized porphyritic dikes cut the mineralization.

The most economically significant mineralization encountered to date on the property is fracture- controlled and disseminated chalcocite. The chalcocite occurs as:

1. Sooty or scaly coatings 1 millimetre wide, filled to partially open fractures;
2. Sooty coatings on rock fragments and rock flour encountered in intense fracture or fault zones over widths of 1 to 10 metres;
3. Selvages on sub-centimeter width quartz veinlets;
4. Occasionally as disseminated grains or coating disseminated grains of primary chalcopyrite in zones of more intense fracturing and silicification.

Chalcocite is enriched in the secondary sulphide enrichment zone. Molybdenite occurs in fine fractures and as grains within sub-centimetre wide quartz veinlets in the primary sulphide, secondary sulphide and Main Porphyry. Chalcopyrite occurs as disseminated grains and surface coatings along fractures and within quartz veinlets. Disseminated grains were also observed. Chalcopyrite in concentrations of up to 1% occurs in the Main Porphyry and in primary hypogene sulphide zones.

Copper grade increases three-fold from the primary sulphide zone to the secondary sulphide zone. The leached zone has copper grades approximately one third of those from the primary sulphide zone and an order of magnitude less than the secondary sulphide zone. The genetic model involving the removal of copper from primary mineralization in what is now the leached zone and re deposition as chalcocite in the secondary sulphide zone is well supported, given the distribution of copper grades among the mineralization zones. The Main Porphyry is weakly mineralized with copper, and the Late Porphyry contains little or no copper.

Molybdenum grade does not vary significantly between the primary sulphide, secondary sulphide, and leached zones, demonstrating the relative immobility of molybdenum in molybdenite during supergene processes. The highest concentrations of molybdenum occur in the Main Porphyry, a characteristic which is common to other porphyry and skarn deposits in the region.

In general, gold, silver, zinc, and lead concentrations are very low in all mineralization types. These metals do not show significant enrichment or depletion trends between the primary, secondary, and leached zones, and are not especially enriched or depleted in either of the porphyries.

Hydrothermal alteration is restricted to the development of secondary sericite, biotite, and quartz, suggesting that the relatively inert quartzite and low water to rock ration of alteration result in the subtle alteration observed at Antilla. Unaltered quartzite lacks significant quantities of primary aluminosilicates to alter to large quantities of sericite, chlorite, biotite, and clay typical of potassic, phyllic, propylitic, and advanced argillic alteration zones common in other porphyry zones.

Due to difficulties of stratigraphic correlation within the relatively monotonous quartzite and arenite of the Soraya Formation, a detailed understanding of the structural geology of the Antilla deposit is still under development. However, current genetic interpretations for the Antilla deposit place an emphasis on structural features at regional and local scale as mineralization controls.

The main mineralization types or zones are similar to many other porphyry deposits. The zones found at Antilla are primary sulphide, secondary sulphide, and oxide in the leached cap overlying the deposit. The secondary sulphide zone forms a relatively continuous, tabular chalcocite-enriched blanket that generally ranges from 60 to 120 metres thick. Borehole ANT-36-08 intersected a secondary sulphide zone 243 metres thick before encountering primary sulphide-style mineralization at 278 metres. The average thickness of the secondary sulphide zone is 92 metres.

The secondary sulphide zone is overlain by a leached cap that has an average thickness of 55 metres and generally ranges from 0 to 75 metres thick. The leach cap appears to thicken to the north and to the west where borehole ANT-64-08 encountered leached cap to a depth of 274 metres. It is interpreted that much of the leached cap overlying the main and southeastern portion of the secondary sulphides has been eroded bringing the secondary sulphide mineralization nearly to surface in some locations. The tabular secondary sulphide and leached cap zones are underlain by lower-grade primary sulphide mineralization. The depth extent of the primary sulphide mineralization is not known as it has only been tested by five or six boreholes.

Main Porphyry is weakly mineralized and is known to flank the primary and secondary sulphides and oxide zone to the east and west and at the northwest corner.

A discontinuous veneer of gravel, sand, talus, and colluvium overlies the deposit. Overburden ranges in thickness from 0 to 53 metres, averaging 12 metres. In addition to the mineralization zones, a very small zone of weak exotic-type or remobilized copper oxide mineralization has been found in overburden exposed in a road cut at the bottom of the hill slope, overlying the secondary sulphide blanket.

The mining operations proposed for the Antilla project are typical of open pit, truck-and-shovel heap leach mining methods for year-round operations in mountainous terrain. Truck-and-shovel mining operations are assumed to be completed by a contract miner utilizing their own mining fleet.

The mine operations are organized into three departments: mine maintenance, technical services, and direct mining. Mine maintenance accounts for the supervision and planning of the mine maintenance activities. Technical services account for the technical support from mine engineering, planning, geology, and surveying functions. Direct mining accounts for the drilling, blasting, loading, hauling, and pit maintenance activities in the mine.

Operations are assumed to run 365 days per year, 24 hours per day, seven days a week, on a 12-hour shift rotation.

The production schedule targets 20,000 tonnes/day of leach material, resulting in 7.3 million annual tonnes of crushed leach material placed on the leach pad. Marginally economic leach material is stockpiled to increase leach material grades. The stockpile is reclaimed in later years of the mine schedule when it is economically beneficial to do so. Mine waste rock is used to construct site infrastructure where applicable or is placed in the Rock Storage Facility to the west of the pit area.

The Antilla mining operations will be undertaken by contract miners who will supply and maintain their own fleet of conventional diesel powered equipment on a $/tonne contract.

The contractor miners will size their fleet accordingly to match the production schedule, including a peak material movement capacity of approximately 25 million tonnes per year and a life-of-mine average material movement capacity of approximately 17.3 million tonnes per year.

Drilling and blasting will be undertaken by the contract miners, based on the production schedule. It is assumed that in addition to production drilling, the contractor will also be responsible for high wall and preshear drilling using a secondary drill rig.

Contractor miners will use truck and shovel/excavator sizes as per their own fleet availabilities; however, based on the mining schedule, the primary loading units for the Antilla project should be sized at approximately 12-15 cubic metre loaders/excavators matched with 90- tonne haul trucks. This truck and shovel/excavator pairing is assumed for both leach material and mine waste rock. Detailed pit designs include road widths designed for 90-tonne haul trucks. If a contractor uses different equipment, the pit designs should be updated accordingly.

Representative cycle times (assuming 90-tonne haul trucks) are used to approximate variable haulage costs, incorporated into the production schedule so that the economics of the mining schedule consider longer hauls and the NPV is maximized where possible. Overhauling costs (for leach material) are estimated on an increasing basis as the height of the leach pad increases.

The mine plan assumes that contract miners will staff operators to match their fleets, with four crews rotating to fill the mine roster of 12 hours per shift (two shifts per day). Technical staff and mine operations supervision will be provided by the owner.

The Antilla Project will operate a conventional hydrometallurgical process consisting of a crushing plant, a valley-fill leaching plant, solvent extraction plant, and Electrowinning plant to produce grade-A copper cathodes.

Crushing Plant
The crushing plant considers a multi-stage circuit to reduce the ROM ore to approximately 100% minus 1” inch. The crushed ore will be stockpile, then loaded onto dump trucks and transferred to the heap leach plant using a front-end loader and 20 tonne dump trucks.

Heap Leaching
The valley-fill leaching operation will have capacity to receive approximately 120 million tonnes of ore over the 17 years of life of mine. The ore placed on the leach pad will be irrigated with diluted acid solution to transfer copper metal into the PLS. The bottom of the valley will be impermeabilized with a synthetic liner to collect all percolating solutions.

Solvent Extraction and Electrowinning
A conventional multi-stage sol ........