The mineralization at Hilarión is found in association with a Zn-Pb-Ag skarn system. Skarn mineralization is hosted by contact, metasomatic calc-silicate rocks proximal to intrusive rocks. They typically form by contact metamorphism of a carbonate rich rock.

The Project is located in the Central Andes in Peru. The Central Andes developed as a typical Andean-type orogen through subduction of oceanic crust and volcanic arc activity. The Central Andes includes an ensialic crust and can be subdivided into three main sections which reveal different subduction geometry as well as different uplift mechanisms. The Northern Sector of the Central Andes, which hosts the Project, developed through extensional tectonics and subduction during early Mesozoic times. The sector was uplifted due to compression and deformation towards the foreland. In the last 5 Ma, a flat-slab subduction developed (Peruvian Flat Slab Segment).

The mineralization at Hilarión–El Padrino occurs along the contacts of dikes but also as discrete tabular vertical zones. The zones are elongated parallel to the main northwestsoutheast structures, which is also the direction of most of the dikes. The Hilarión deposit consists of multiple zones that vary from 3 m to 65 m in thickness and from 100 m to 1,500 m along strike.

The alteration and mineralization assemblage at Hilarión–El Padrino show overlapping phases of hydrothermal mineral formation, confirming the typical multi-pulse sty ........

The Project contemplates the underground exploitation of the polymetallic Mineral Resources of the Hilarión and El Padrino deposits. This PEA report considers only the mining of the Hilarion deposit, and the El Padrino deposit would be considered in future studies.

Proposed mining methods include Sub-level Longhole Stoping (SLS) with backfill and Transverse Longhole Stoping (TLS), which are suitable for the ground conditions and geological setting of the Hilarión deposit.

The LOM indicates an average overall production rate of 7,800 tpd over the full 16 years of the LOM with a production rate in excess of 10,000 tpd for a ten-year period from year two to year eleven of the LOM. Over the ten-year period at the higher production rate the backfill is split almost 50/50 between the paste fill and loose rock fill. Make-up rock fill will be required as waste rock from mine development will account for approximately 50% of that required. Additional operating costs were included to allow for waste rock from a surface source nearby.

Production ore will be made up of 37% from transverse primary and secondary stopes, 54% from sub-level longhole stopes and 8% from development headings in ore.

The Hilarión Project will be accessed using multiple ramp entry points, a 3 km conveyor tunnel, and a system of internal ramps.

Mineralized material would pass through a primary gyratory crusher located underground prior to being transported to ........

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