The deposit type can be described as an epithermal quartz - calcite vein system. Typical banded epithermal vein textures are observed in underground workings and drill core. Brecciated vein textures, healed by quartz and calcite are common. Low concentrations of galena and sphalerite and presence of silver minerals indicate a high level of exposure within the epithermal vein system.

The primary Santa Maria vein gently curves following the contact of the associated rhyolite dike and can be traced on surface for 750 m. The current demonstrated down dip extent is 260 m and remains open at depth and along strike.

The vein occupies a fault zone near the contact between the Parral Formation sediments and the Tertiary dike. Breccia textures, healed by quartz gangue are common in the vein. The vein varies in width between 1 and 4 meters with an average width of 2 meters. The dip of the vein is north varying between 75 and 85 degrees. In the underground workings, occasional post mineral normal faults can be observed to offset the vein locally.

At surface the vein is oxidized, oxidation extends irregularly to ~75 meters depth. In the easternmost portion of the vein sulfide mineralization is preserved in the footwall of a cross-cutting fault. Oxide portions of the vein are characterized by strong iron oxides including goethite and hematite. The observed sulfide minerals are galena and sphalerite with rare occurrences of acanthite and ruby silver sulfosalts.

The mining conditions for the Santa Maria deposit are considered to be narrow vein hard rock. The true width of the vein planned for mining (prior to dilution) varies from 0.6 m to 3.7 m. Two vein systems are part of this conceptual analysis, the Santa Maria and the Santa Maria Dos veins. The depth of mining is planned to be between 100 and 380 m below surface or at elevations between 1910 and 1640 m asl.

For the preliminary economic assessment, two mining methods were selected, Sublevel Stoping and Drift and Fill.

Sublevel stoping has been envisaged as overhand longitudinal retreat. The stopes will be developed through driving drifts spaced 30 m apart along the vein from crosscuts off the main ramp. These drifts will form the base of the stopes, from which blasted material will be mucked and will be the main levels forming the mine. In between the main levels one or two sublevel will be driven which will be used to access stopes for drilling of production blast holes. Sublevels will be driven along the vein either directly off crosscuts from the main ramp or by access raise from the main levels. As such blast hole drilling equipment would be required to be capable of being hoisted up 1.5 by 1.5 m access raise. The driving of sublevels will be done by jackleg and slusher. The sublevels will be spaced 10 to 15 m apart from which both upholes and down holes could be drilled. The stope sequencing will be such that blasted material will be dropped to the main level from which it will be mucked using a narrow scooptram (1.6 m wide). Sill and rib pillars would be left between stopes to maintain regional stability.

Drift and fill mining has been considered as a combination of mechanized drill and blast and jackleg mining. The method may use both overcut and undercut blasting. The stope would first be developed to extents by driving a drift along the vein using either jackleg or jumbo drilling. From this level undercuts and/or overcuts will be blasted successively. Due to the narrow nature of the deposit and due to the fact that minimal fill material is available, it has been assumed that waste rock will need to be blasted to act as fill. This would come from hanging wall of the vein, blasted in separate blasts from the vein.

It is currently envisioned that both mixed and sulfide materials will undergo toll-milling at a facility with sulfide flotation circuits. Per information provided by the facility, the maximum total throughput for the flotation circuit is 250 tonnes per day. The flotation circuit contains both lead and zinc flotation, but will be operated as to produce a bulk sulfide silver gold bearing concentrate.