Gold mineralization is considered to represent an intrusion-related, low-sulphidation, quartzsulphide, Au and Cu deep epithermal system. These systems often host very fine (refractory) gold in sulphides.

Diatreme flow dome complexes vent to the surface and in all other cases host epithermal Au mineralization, locally cutting or telescoped over older porphyry manifestations.

Rather, the dominance of massive chalcedony in these veins is more typical of formation in an epithermal environment. Petrology work (Lohmeier, 2017) describes bornite replaced by chalcopyrite along with sphalerite (of unknown Fe:Zn ratio) and tetrahedrite as the sulphide minerals, typical of an intrusion-related fluid in a deep epithermal setting. Lohmeier (2017) also recognized a correlation between Au and Ag-Bi-Cu, typical of a low sulphidation deep epithermal geochemical signature.

While any possible association between Au and magnetite is unusual, the final event of quartz- pyrite mineralization is most certainly typical of the intrusion-related low sulphidation quartz- sulphide Au + Cu deep epithermal style.

Overprinting magmatic events include pre-mineral andesite domes, followed by emplacement of polyphasal dacite dome (including some transitional to andesite in composition) and associated diatreme (milled matrix) breccia events. The mineralization of low sulphidation Au is best developed in sheeted quartz veins, breccia clasts and very finely diss ........

The Fenix Gold Project consists of an open pit mine which will be developed using conventional drill and blast techniques, with an excavator and truck configuration. The mining rate is 20,000 tpd of ore to the crusher, with low-grade to one of two stockpiles, and waste to the waste dump. The mining rate has been determined based on the processing rate, which is primarily a function of the available water. The water supply will be delivered to site by a fleet of trucks from Copiapo. The water supply rate was determined primarily by assessing the practical and sustainable limit to the number of trucks that can make the continual cycle from Copiapo to the mine.

For this mining rate and cost structure, the cut-off grade was determined using Whittle software to be 0.24 g/t Au. To further improve the economics and increase cash flow, a medium grade and lowgrade stockpile will be used. The medium grade material is between 0.30 – 0.4 g/t Au and lowgrade material is between 0.24 – 0.30 g/t Au. Both stockpiles will be located adjacent to the crusher, however the low-grade stockpile will be located close to the pad and maybe treated directly as ROM mineral if metallurgical work indicates an acceptable recovery.

The first year of production has an average production rate of 12,000 tpd of material placed on the leach pad, which reflects the ramp up from 0 to 20,000 tpd. This is due to the starter pit initial phases being located on topographic high points where there ........

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