The Magistral deposit is a calc-alkaline, copper-molybdenum, porphyry deposit with a well developed envelope of copper-(molybdenum) mineralized skarn (Ristorcelli et al., 2008).

There are three types of mineralization at the Project:
• Skarn: The skarn mineralization is of highest grade, forming a hundred-metre scale rim within the country rocks around the porphyries. Garnet (grossular at proximal and andradite at distal alterations), epidote, chlorite, hematite, magnetite, quartz and inosilicate minerals (pyroxene and amphibole) form the skarn gangue mineralogical assemblage. Centimetre-scale mineralized veinlets and massive patches of sulphide (chalcopyrite, pyrrhotite, pyrite, and minor molybdenite) crosscut the skarn gangue assemblage.

• Mixed zone: It consists of a metre-scale interlayering between the skarn and the porphyry style mineralization. It is possibly formed by the combination of exoskarn, endoskarn, and also intrusive fingers (porphyry), making a complex and variable sort of mineralization that combines mineralogical and grade characteristics of skarn and porphyry mineralization.

• Porphyry: The porphyry mineralization is of lowest grade and is formed by several quartz, chalcopyrite, and molybdenite veinlets (“D”, “B”, and “A”-type veinlets), which constitute a final stockwork framework that crosscuts the intrusive porphyry. The skarn mineralization seems to be preferentially elongated and anisotropic parallel to the st ........

The Project as currently designed will be an open pit mining operation. Open pit mining is proposed to be carried out by a contractor as a conventional truck and shovel operation.

It is contemplated that the mining contractor would undertake the following activities:
• Drilling performed by conventional hydraulic production drills.
• Blasting using ANFO (ammonium-nitrate fuel oil) and a down-hole delay initiation system.
• Loading and hauling operations performed with hydraulic excavators, and 35 t 8x4 haulage trucks.

The production equipment would be supported by bulldozers, graders, and water trucks. VMH would supervise the overall mining operation with its own employees including mining engineers, geologists, surveyors, and support staff.

Mineralized material will be fed directly into a primary crusher located adjacent to the open pit. Primary crushed material from the crusher will be transported to the processing facility using a system of conveyors.

Topsoil stripping will be required to gain access to mineral and waste rock below. The volume is estimated to be approximately 2.2 Mm 3 , which will be stored to the northeast of the pit. Waste rock will be sent to either the Valley Waste Dump (located west of the pit) or the North Waste Dump (located to the northeast of the pit).

As a portion of the material is expected to be potentially acid generating (PAG), this material will be stored in the North ........

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