The structural setting of the Volcan property is related to, and associated with, the formation of the Copiapo stratovolcano (Volcan Copiapo) and may also be related to regional northerly-trending high-angle reverse faulting. Cameco originally identified three generally moderate to steeply dipping fault systems, trending northwest-southeast, northeast-southwest and east-west, and considered the northeast-southwest and east-west trending systems to be the more important structural controls on alteration and mineralization.

The principal rock types identified on the Volcan property are:
• Dacite, rhyodacite and andesite lavas;
• Volcanic flow and dome complex rocks;
• Pyroclastic flows;
• Hydrothermal breccias;
• Sub-volcanic porphyry.

Gold-copper mineralization at Volcan is related to the intensely developed hydrothermal alteration that gave rise to the native sulphur deposits in the area. The hydrothermal system was a consequence of the sub-volcanic intrusion of dacitic to microdioritic porphyry into a complex of domes and lava flows of dacitic composition.

Mineralization
Easdon (2005) describes the gold mineralization as follows:

“The generation of this sulphur [i.e., the native sulphur], with associated and anomalous mercury, arsenic, antimony and gold, was recognized (Zentilli, 1990) to be related to near-surface, but deeper seated multiple hydrothermal high sulphidation epithermal systems which ........

There are two independent open-pit areas named Dorado Oeste/Central and Dorado Este, each one with a dedicated NonEconomic Rock Storage Facility.

Open Pit
The proposed mining operations are based on the use of hydraulic excavators and a haul truck fleet engaged in conventional open pit mining techniques.

Excavated material will be loaded to trucks and hauled to either the Run of Mine (ROM) pad, the low-grade stockpile or the NERSF. Mineralized material excavation and haulage will be monitored by quality control personnel employed by the geology department and details of material movement will be recorded by a radio dispatch system. Almost all rock is fresh rock that will be typically blasted on 20 m benches.

Production Schedule
Mine scheduling assumptions are as follows:
• Crusher feed of 60 kt/d.
• Maximum 85 Mt of material movement per year.
• Low-grade stockpile to increase head grade for initial years.

The estimated open pit mine life is 14 years, providing feed to the crushing circuit at an average rate of 60,000 t/d. Mineralized material is produced from the pit from 10 years of active mining with low-grade material set aside for processing for the last 4 years of mine life.

Blasting and Explosives
The drill and blast requirements will include:
• bench height: 20 m;
• burden and spacing for mineralized material are estimated at 9.0 m x 8.0 m respectively;
• burden a ........

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