Mineralized veins at the Invicta Project have many of the characteristics of epithermal vein system. Buenaventura Ingenieros S.A. (2010) concluded on the basis of fluid inclusions studies, which indicated multiple fluid populations and homogenization temperatures between 250 and 400°C, that mineralization at the Invicta Project was mesothermal. However, field observations, including the style of veining, alteration, and the presence of open-space, vuggy textures are more in support of epithermal-style veining. The results obtained by Buenaventura Ingenieros S.A. (2010) may be explained by a depositional process controlled by fluid mixing and the cooling of the hydrothermal system associated with multiple stages of mineral deposition over a protracted period of time.

In fact, petrographic studies (Buenaventura Ingenieros S.A., 2010) combined with field observations show that there have been multiple phases of hydrothermal metal-rich solutions, with separate episodes of quartz-hematite-gold-silver and quartz-chlorite-gold-silver-copper solutions deposited along a structure that has been subject to multiple phases of recurring fracturing.

Mineralization occurs as quartz veins and associated minor stockwork veinlets that carry gold, pyrite, sphalerite, galena and chalcopyrite. The main alteration minerals associated with auriferous quartz veins include quartz, chlorite, hematite, calcite and minor epidote.

In general, mineralization is characterized by the presence of quartz-pyrite-chalcopyrite-acanthitehematite bearing quartz veins with common crustiform, banded and cockade textures exhibiting distinctive vugs. The sulfide mineralogy comprises stringers and blebs of pyrite and chalcopyrite and pods of sphalerite and galena. Minor chalcocite, digenite, chalcopyrite and bornite are also reported with traces of tennantite. Petrographic studies conducted by Pangea and Invicta suggest that gold occurs as free grains in fractured quartz and pyrite. These characteristics are typical of epithermal vein systems. Mineralization is hosted dominantly by (sub-) volcanic mafic rocks of the Calipuy Group.

At least three mineralized zones have been identified to date which are spatially associated with the Atenea, Pucamina and Dany Fault.

The primary mineralized zone is the Atenea vein. Lesser mineral resources are hosted by, or associated with, the Pucamina and Dany faults and include Ydalias, Dany and Pucamina Zones.

Other quartz-sulfide vein zones (e.g. Juan, Manuel, Zone 3, and Zone 7) are exposed at the Invicta Project. Limited trenching and minimal drilling has tested these zones and indicated that these vein zones also carry gold, copper and silver attesting to the further exploration potential of the area. The presence of copper-rich quartz-sulfide veins may suggest a stage of mineralization and deformation that may pre-date the dominant gold-silvercopper mineralization.

The geotechnical characterization of the mineralized deposit, the wall-rock competency and the geometric shape lends itself to a sublevel long hole stoping mining method with unconsolidated waste rock backfill. This method typically responds well for obtaining a high extraction ratio, controlled dilution and reasonable to low operating cost.

Longhole drilling will be undertaken by down-the- hole hammer drills with an on-board compressor. Longhole stopes will be blasted utilizing ANFO with standard blasting techniques.

The blasted material will be mucked from the 3400- extraction level utilizing 4 cubic yard LHDs (fitted for remote use). The ore then will be dumped directly into 20 tonne haulage trucks. The trucks will then transport the material from the adit to an off-site mill processing facility.

The lower portion of the stopes will be 30 m high (sill to sill) and mined from the 3400 Level with up-hole drilling and from 3430 Level with down-hole drilling. All other levels, from 3445 to 3505 Level are 15 metres in height and will be down- hole drilled.

The total height of the stopes will be estimated at 130 metres, with a length of 40 metres, and a width of 4 to 14 metres. All stopes will be separated by rib pillars and filled with available development waste rock. The availability of backfill may not always be ready within the mine cycle therefore these designed rib pillars in- between stopes will allow for further support if the waste rock is not provided on time.

A total estimate of only 59 kilotonnes of waste rock will be produced through the underground development process. The total quantity of fill required for the life of the operation would be 534 kilotonnes. The difference of 475 kilotonnes will be obtained partially from a nearby quarry and other potential locations yet to be sourced. For this reason, the mining method contemplates leaving rib pillars between stopes.

During the first year of operation most of the development waste rock will be stockpiled on surface. Once stoping operations commence, the waste stockpile will be reclaimed as backfill. Trucks backhauling backfill material to the stopes will dump the fill in muck bays, from there it will be transported to and dumped into the stopes using remote control LHDs.

The deposit extends vertically over 100 metres depth, from the top 3505 Level down to 3400 Level. The mine plan will consist of a total of 7 levels.

The main access from surface to the deposit is located on 3400 Level via a surface portal driven
at 4 metres high by 5 metres wide. The 3400 Level will also be the main extraction level. Access to the orebody runs from the 3400 Level access drift via 2 crosscuts located in the hanging wall running to the footwall. These cross cuts will access the drawpoints which will be excavated every 10 to 15 metres apart.

Results of metallurgical tests indicate that conventional flotation technology can be used to treat the mineral resources from Invicta. The flowsheet includes crushing, a coarse primary grind, bulk lead, copper, gold and silver flotation, flotation of a Zn concentrate, bulk concentrate regrinding, and selective Cu/Pb flotation.