The deposits within the Peñasquito Operations are considered to be examples of breccia pipe deposits developed as a result of intrusion-related hydrothermal activity.

The breccia pipes are believed to be related to quartz–feldspar porphyry stocks beneath the Peñasquito area. The current bedrock surface is estimated to be a minimum of 50 m (and possibly several hundred meters) below the original paleo-surface when the diatremes were formed.

Alluvium thickness averages 30–50 m at Peñasquito, and this cover obscured the diatremes. There is one small outcrop of breccia near the center of the Peñasco diatreme, rising about 5 m above the valley surface. The single outcrop near the center of the Peñasco pipe contained weak sulfide mineralization along the south and west side of the outcrop, representing the uppermost expression of much larger mineralized zones at depth.

Peñasco and Brecha Azul are funnel-shaped breccia pipes, which flare upward, and are filled with brecciated sedimentary and intrusive rocks, cut by intrusive dikes.

The larger diatreme, Peñasco, has a diameter of 900 m by 800 m immediately beneath surface alluvial cover, and diatreme breccias extend to at least 1,000 m below surface. The Brecha Azul diatreme, which lies to the southeast of Peñasco, is about 500 m in diameter immediately below alluvium, and diatreme breccias also extend to at least 1,000 m below surface.

Chile Colorado is a mineralized stockwork l ........

The Peñasquito Operations contain the Peñasco and Chile Colorado deposits. Open pit mining commenced in 2010, and commercial production was reached during 2011. The open pit feeds a sulfide concentrator (mill).

Open pit mining is conducted using conventional techniques and an Owner-operated conventional truck and shovel fleet. Currently, two open pits, Peñasco and Chile Colorado are being mined.

The Peñasquito pit has four remaining stages (Phases 6 to 9), and will be excavated to a total depth of 780 m. The Chile Colorado pit has one remaining stage (Phase 2), and will reach 461 m ultimate depth. An ore stockpiling strategy is practiced.

The remaining mine life is 10 years, with the last year, 2031, being a partial year. The open pit operations will progress at a nominal annual mining rate of 193 Mt/a until the end of 2023, subsequently decreasing to a nominal mining rate of 144 Mt/a until the end of 2027. The LOM plan assumes a nominal rate of 36 Mt/a milling until 2031.

Operations use a standard drill-and-blast, truck-and-shovel configuration. The ramp design comprises two traffic lanes, safety berms and ditches. Ramp gradients are established at 10%. Haul road width assumptions include berm security of 8 m of width. The height of the safety berm is generally about 2/3 of the diameter of tire of the largest vehicle travelling on the road.

The overall designs are based around 15 m mining bench and 30 m double bench i ........

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The Peñasquito Operations currently consist of a sulfide plant that processes a maximum of 119,000 t/d of sulfide ore. The sulfide process plant design was based on a combination of metallurgical testwork, previous study designs, and previous operating experience. The design is conventional to the gold industry and has no novel parameters.

Active loading of the oxide heap leach pad ceased in 2020. The heap leach pad is being recirculated with water while closure plans are under development.

Sulfide Plant
The flotation area is comprised of carbon, lead and zinc flotation circuits.

The carbon pre-flotation circuit consists of two banks each with two cells of rougher in parallel. Carbon rougher concentrate proceeds to a single bank of three cleaner cells. The cleaner concentrate is treated in a single re-cleaner column, while the cleaner tails flow to a single bank of three cleaner-scavenger cells. Cleaner-scavenger concentrate returns to the cleane ........