The Loma Larga property is located between the Gañarin fault to the northwest and the Girón fault to the southeast. A collapsed caldera structure, four kilometres in diameter, the remnant of an eroded stratovolcano, lies along (and probably emplaced and controlled by) the Gañarin fault and 400 m west of the main Loma Larga mineralization. The caldera is underlain by late felsic domes and is cut by a multi-phase diatreme. The north-south trending Rio Falso fault, which appears to be a conjugate fault linking the Gañarin and Girón faults, is the locus for alteration and mineralizing fluids.

The property and immediate surrounding area is mostly underlain by Upper Miocene volcanic and volcaniclastic rocks, of the Turi, Turupamba, Quimsacocha, and Tarqui formations. These formations are flat lying to gently dipping and usually do not outcrop on the property. The outcrops that are exposed form a radial pattern around the caldera and gently dip away from it to the south and east.

The property is largely underlain by the Quimsacocha Formation which hosts the Loma Larga deposit and consists of alternating andesitic banded lava flows with phenocrysts of fresh plagioclase and andesite tuffs and breccias, distributed radially only around the outside of the caldera. The Quimsacocha Formation overlies the Turi Formation which consists of tuffaceous breccias, conglomerates, and sandstones with a high content of andesitic clasts and occasional clasts of tuffaceous bre ........

The mine has been designed to produce 3,000 to 3,500 t/d from an underground operation using conventional highly mechanized mining equipment routinely used in similar operations around the world.

The orebody configuration will allow for a straightforward and simple mine layout. The mine will have a relatively small amount of lateral development due to the elongated and flat configuration of the ore. There are only three main mining levels and almost no ramp development other than the initial access ramp and the accesses to the three levels.

The principal mining method will be transverse longhole stoping followed by paste backfilling.

Drift-and-fill will also be used where the ore is narrower than a full stope or where the stopes are relatively short in height. The method is very similar to the cut-and-fill mining method.

The selected mining methods are relatively simple, permit standard operating routines and are highly flexible. This, combined with good ground conditions, in a high percentage of the orebody (as per RockEng) should lead to a safe and highly productive operation.

TRANSVERSE LONGHOLE MINING
The majority of the mine will be developed for transverse longhole stoping, with stopes aligned perpendicularly to the strike of the orebody. The stopes will be mined in a primary-secondary sequence, with primary stopes measuring 20 m wide x 25 m high x 20 m deep and secondary stopes measuring 20 m wide x 25 m high ........

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