Crespo is a high sulphidation epithermal deposit.

The Soteco Joint Venture initially identified the Liam area as a zone of high sulphidation type epithermal gold-silver mineralization and in particular that the Cerro Crespo butte could represent a vent related diatreme-type body. Drilling at Cerro Crespo by Soteco was generally below the base of the butte (except for one, upward directed hole). The Soteco sampling showed that Cerro Crespo was anomalous in gold and silver; however, drilling marginal to and to some degree below Cerro Crespo produced only anomalous precious metal values.

Subsequently Misosa mapped and sampled in detail Cerro Crespo and Queshca and then carried out an initial diamond drilling program at Cerro Crespo.

The Misosa channel sampling at Cerro Crespo produced the following conclusions:
1) Cerro Crespo is a high level, complex volcanic hydrothermal vent system within an extensive high sulphidation alteration zone.
2) A significant gold-silver zone of mineralization is associated with the hydrothermal vent system.
3) High grade silver values with subordinate gold were found in Zones A, B and C in the upper part of the butte at elevations between 5,350 and 5,375 m, and also in Zone D at an elevation of 5,200 m suggesting 150 to 175 m of vertical continuity in the eastern part of the butte. In Zone E at 5,150 m silver values decrease but copper increases.
4) The upper part of Cerro Crespo is strongly oxidized, however, Misosa geologists consider that silver migration is generally in the order of centimetres.

From the mapping at Cerro Crespo as well as the diamond drilling, it is possible that the gold silver mineralization at Cerro Crespo is confined to the brecciated and highly silicified zone of the butte, which is in turn surrounded by an argillic-siliceous alteration zone. The mineralized zone trends northwesterly, with a strike length in the order of 350 m, a width of 125 to 150 m and a vertical extent of approximately 150 m. The zone of better grade mineralization appears to be “V” shaped in cross-section with the zone being wider at the top of the butte and diminishing in width at depth as it passes into the feeder zones. The main areas of mineralization are on the two arms of the “V” with smaller, discontinuous areas within the upper mouth of the “V”. This overall picture is distorted by the east-west faults and movement of the adjacent blocks.

It is possible that the work performed to date identified a high sulphidation, breccia-hosted and highly silicified zone of gold-silver mineralization at Cerro Crespo with the potential to be of economic significance. Additional drilling will be required to determine its overall form and grade.

Crespo is a high sulphidation epithermal deposit and will be mined utilising open-pit methods with an average daily production of 6,850 tonnes and a stripping ratio of 1.15:1. Drilling and blasting will be carried out directly by Hochschild with earthworks being developed by contractors.

The Feasibility Study details the construction of a 6,850tpd process comprising stages for primary, secondary and tertiary crushing, agglomeration, heap leaching with cyanidation, Merrill Crowe processing, pressure filter separation and smelting to obtain a doré product. Recoveries are expected to be 80% for gold and 35% for silver.