La Colorada is located in a region with significant silver and base metal production from vein and skarn deposits, and is considered a typical hydrothermal polymetallic deposit, with a transition of silver rich mineralization to more base metal rich mineralization at depth. This is the geological model considered for exploration and mineral resource and reserve estimation.
The skarn deposit is a typical skarn system comprising altered diorite and quartz feldspar intrusive stocks on the contact with limestone and siltstone. Zoned endoskarn and exoskarn are present, with a prograde garnet and pyroxene zone, and a retrograde zone with zinc, lead, copper, and silver mineralization. Carbonate replacement deposits, breccia pipes, epithermal silver, lead, and zinc systems, and a deep copper molybdenum porphyry are present, related to multiphase hydrothermal and magmatic activity.
Economic mineralization at La Colorada is found in veins, replacement mantos within limestone, and skarn. The majority of the mineral resources and reserves are sourced from the NC vein series, the HW vein series, and Veta 3, all at the Candelaria mine; the Amolillo vein system at the Estrella mine; vein and manto mineralization at the Recompensa system at the Recompensa mine; and the new undeveloped skarn deposit, which is parallel to and below the NC vein series, east of the Candelaria mine.
Most mineralized veins on the Property strike east to northeast and dip mod ........
