Los Verdes contains molybdenum-(copper-tungsten) mineralization in breccias related to felsic intrusive rocks. A number of features of the deposit appear to place it in the category of a molybdenum-bearing breccia pipe related to a larger porphyry copper-molybdenum system. The indicative features are postintrusive breccias with interstices partly filled by fine-grained tourmaline, molybdenite, copper and varying amounts of tungsten and base-metals minerals, and late quartz-pyrite. Although Los Verdes has a tabular form, rather than pipe-shaped, it meets the definition of this type of deposit.

The mineralization at Los Verdes is of magmatic-hydrothermal origin, consisting originally of sulfide minerals, principally chalcopyrite, pyrite, and molybdenite, and apparently related to the granodiorite. Weathering near the surface has converted some of the mineralization to an oxide facies (principally ferromolybdite plus iron oxides). Some of the metals liberated by oxidation of sulfides have percolated downward, and have re-precipitated as secondary sulfides, mainly chalcocite, in the vicinity of hypogene sulfide minerals.

The mineralized zone on the Los Verdes property is about 300 meters northeast-southwest, and 200 meters northwest-southeast. Its eastern edge is at the Moly Pit, where it is cut off by the Buena Vista Fault. The mineralized zone is centered beneath the ridge extending southwest from the Moly Pit.

The Los Verdes mineralization is c ........

The mine at Los Verdes will be accessed using conventional truck-shovel open pit mining techniques. Open pit mining operations will be based on a 21 hour per day, 6 days per week schedule for a nominal production rate of approximately 3500 tonnes per day. Mineralised material will be drilled and blasted on 5 meter high benches using a staggered blast hole pattern. Wherever possible waste will be drilled using 10 meter high benches using a wider blast hole spacing. All blasting will be performed using bulk ANFO (ammonium nitrate/fuel oil) explosives.

Primary loading equipment will be hydraulic excavators paired with articulated haul trucks. A preliminary waste storage location has been located approximately 1.5 km southwest of the open pit area. Mineralised material will be hauled by the mine trucks approximately 1.5 km to the main processing plant location. It has been assumed that all mining operations will be performed and directly supervised by a capable Mexican mining contractor.

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