Mineralization at Los Azules is Andean-Cordilleran, late Miocene, (quartz-) diorite-hosted, oxidized porphyry copper style with a well-developed leached cap and supergene chalcocitecovellite blanket.

Los Azules has been geologically mapped on at least four separate occasions (Rojas, 2007; Zurcher, 2009; Almandoz, 2010; Pratt, 2010). The resulting geological maps and interpretations are in general agreement but differ in detail, and Jemielita (2010) reconciled most of the differences. The entire area comprising the Los Azules deposit is covered by thick scree or valley fill, so none of the rocks or structures are exposed in outcrop, although some near-surface exposures have been exposed in shallow trenching at the crest of the La Ballena ridge. Consequently, the interpretation of the structures and intrusive bodies is based almost entirely upon drill hole data.

In many respects the Los Azules deposit is a classic Andean-style porphyry copper deposit. In the bedrock below the surface cover a barren leached zone overlies a zone of secondary supergene enrichment of variable copper grades and thickness, and primary hypogene mineralization extends to at least 1,000 m below the present surface. The Los Azules hydrothermal alteration system is at least 5 km long and 4 km wide and is elongated in a NNW direction along a major structural corridor. The system disappears below volcanic cover to the north, so the ultimate extent is unknown. The altered zone surrounds ........

The Los Azules deposit and the disseminated nature of the mineralization indicates that hard rock, large-scale, open pit mining methods are the most appropriate using large electric rope shovels and mine haul trucks. Mining operations are planned to be staffed to enable continuous operations throughout the year.

Pit walls were smoothed to minimize or eliminate, where possible, noses and notches that could affect slope stability. Internal haulage ramps were included in the slope design to allow for truck access to working faces on each level.

Overburden/alluvium material was limited to an inter-ramp angle of 28°, while rock – oxide, secondary sulfide, and primary sulfide – slopes were designed to an inter-ramp angle of 40°. Bench face angles were constant for all rock types at 65°. The same slope design parameters were used for the internal phases as for the ultimate pit.

The designed ultimate pit is approximately 3.8 km long N-S and 2.5 km wide E-W at the crest. Elevations range from 3115 meters at the bottom to 4080 meters at the highest crest on the east wall. The maximum overall benched pit wall height is 965 meters. The surface area of the ultimate pit is approximately 970 hectares, while the lateral area is nearly 690 hectares.

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