Source:
p. 2, 23
Hermosa is a polymetallic development option located in Santa Cruz County, Arizona, and is 100% owned by South32. Title to the mineral rights is vested in South32’s wholly owned subsidiary Arizona Minerals Inc.
Deposit Type
- Carbonate replacement
- Manto
- Skarn
Summary:
The Taylor Deposit is a carbonate replacement style zinc-lead-silver massive sulphide deposit. It is hosted in Permian carbonates of the Pennsylvanian Naco Group of south-eastern Arizona. The Taylor Deposit comprises the upper Taylor sulphide (Taylor Mains) and lower Taylor deeps (Taylor Deeps) domains that have a general northerly dip of 30° and are separated by a low angle thrust fault.
The Taylor Deposit has an approximate strike length of 2,500m and a width of 1,900m. The stacked profile of the thrusted host stratigraphy extends 1,200m from near-surface and is open at depth and laterally.
The regional geology is set within Lower-Permian carbonates, underlain by Cambrian sediments and Proterozoic granodiorites. The carbonates are unconformably overlain by Triassic to late-Cretaceous volcanic rocks. The regional structure and stratigraphy are a result of late-Precambrian to early-Palaeozoic rifting, subsequent widespread sedimentary aerial and shallow marine deposition through the Palaeozoic Era, followed by Mesozoic volcanism and late batholitic intrusions of the Laramide Orogeny. Mineral deposits associated with the Laramide Orogeny tend to align along regional NW structural trends.
Cretaceous-age intermediate and felsic volcanic and intrusive rocks cover much of the Hermosa project area and host low-grade disseminated silver mineralisation, epithermal veins and silicified breccia zones that have been the source of historic silver and lead production.
Mineralisation styles in the immediate vicinity of the Hermosa project include the carbonate replacement deposit (CRD) style zinc-lead-silver base metal sulphides of the Taylor Deposit and deeper skarn-style copper-zinc-lead-silver base metal sulphides of the Peake prospect and an overlying manganese-silver oxide manto deposit of the Clark Deposit.
The Taylor Deposit comprises the overlying Taylor Sulphide, and Taylor Deeps domains that are separated by a thrust fault. Approximately 600–750m lateral and south to the Taylor Deeps domain, the Peake copper-skarn sulphide mineralisation is identified in older lithological stratigraphic units along the interpreted continuation of the thrust fault.
The Taylor Sulphide Deposit extends to a depth of around 1,000m and is hosted within approximately a 450m thickness of Palaeozoic carbonates that dip 30°NW, identified as the Concha, Scherrer and Epitaph Formations.
Taylor Sulphide mineralisation is dominantly constrained within a tilted and thrusted carbonate stratigraphy and to a lesser degree the overlying volcanic stratigraphy. The mineralising system is yet to be fully drill tested in multiple directions. At Taylor, the sulphide mineralisation is constrained up-dip where it merges into the overlying oxide manto mineralisation of the Clark Deposit, representing a single contiguous mineralising system.
The north-bounding edge of the thrusted carbonate rock is marked by a thrust fault where it ramps up over the Jurassic/Triassic ‘Older Volcanics’ and ‘Hardshell Volcanics’. This interpreted pre-mineralising structure that created the sequence of carbonates also appears to be a key mineralising conduit. The thrust creates a repetition of the carbonate formations below the Taylor Sulphide domain, which host the Taylor Deeps mineralisation.
The Taylor Deeps mineralisation dips 10°N to 30°N, is approximately 100m thick, and primarily localised near the upper contact of the Concha Formation and the unconformably overlying ‘Older Volcanics’. Some of the higher-grade mineralisation is also accumulated along a westerly plunging lineation intersection where the Concha Formation contacts the Lower Thrust. Mineralisation has not been closed off down-dip or along strike.
Lateral to the Taylor Deeps mineralisation, skarn sulphide mineralisation is identified in older lithological stratigraphic units along the interpreted continuation of the thrust fault. This creates an interpreted continuous structural and lithological controlled system from the deeper skarn Cu domain into Taylor Deeps, Taylor Sulphide, and associated volcanic hosted mineralisation and the Clark oxide Deposit.
Mining Methods
- Longhole open stoping
- Paste backfill
Summary:
The design for Taylor is a dual shaft mine which prioritises early access to higher grade mineralisation, supporting ZnEq average grades of approximately 12%9 in the first five years of the mine plan. The proposed mining method, longhole open stoping, maximises productivity and enables a single stage ramp-up to our preferred development scenario of up to 4.3Mtpa. In the PFS schedule, shaft development is expected to commence in FY24 with first production targeted in FY27 and nameplate production in FY30.
Ore is expected to be mined in an optimised sequence concurrently across four independent mining areas, crushed underground and hoisted to the surface for processing. The mine design contemplates two shaft stations, one for logistics and access, and the other for material handling. The primary haulage material handling level is expected to be located at a depth of approximately 800m.
The operation would be largely resourced with a local owner-operator workforce.
The mining dilution is applied based on rock dilution or fill dilution dependent on the location of the stope being mined. Dilution factors are applied on a stope by stope basis using incremental dilution widths applied to the stope geometry.
The mining recovery factor is 95% and is applied to all ore tonnes.
Primary access to the orebody will be through a main shaft and a ventilation shaft. Ore passes, haulage levels and ventilation raises will be established to move material internally within the mine and provide ventilation and cooling. Paste backfill will be produced in a surface backfill plant and distributed underground via a backfill reticulation system.
The proposed mining method with modifying factors applied supports a single-stage ramp-up to the preferred development scenario of up to 4.3Mt per annum.
Flow Sheet:
Crusher / Mill Type | Model | Size | Power | Quantity |
AG mill
|
|
|
|
1
|
Summary:
Primary crushing will be conducted underground, and crushed ore will be hoisted to the surface. Grinding will be conducted by a single-stage AG mill to a size suitable for flotation.
Processing
- Crush & Screen plant
- Jameson Cell Flotation
- Filter press plant
- Dewatering
- Flotation
Flow Sheet:
Summary:
The PFS process plant design is based on a sulphide ore flotation circuit to produce separate zinc and lead concentrates, with silver by-product credits. The flowsheet adheres to conventional principles with a primary crusher, crushed ore bins, comminution circuit, sequential flotation circuit, thickening and filtration. Tailings are processed by either filtration and drystacking, or by converting to paste and returning them underground. Approximately half of the planned tailings will be sent underground as paste fill, reducing the surface environmental footprint.
Pre-flotation and pre-float concentrate cleaning steps have been included in the plant design to prevent magnesium oxide and talc from affecting flotation performance and concentrate quality. Jameson cell technology is proposed to be used in place of some traditional mechanical flotation cells to enhance recoveries. Once filtered, concentrate would be loaded directly into specialised bulk containers.
T ........

Recoveries & Grades:
Commodity | Parameter | Avg. LOM |
Zinc
|
Recovery Rate, %
| 90 |
Zinc
|
Head Grade, %
| 4.1 |
Zinc
|
Concentrate Grade, %
| 53 |
Lead
|
Recovery Rate, %
| 91 |
Lead
|
Head Grade, %
| 4.5 |
Lead
|
Concentrate Grade, %
| 70 |
Silver
|
Recovery Rate, %
| 81 |
Silver
|
Head Grade, g/t
| 82 |
Reserves at June 30, 2021:
Cut-off grade Net smelter return in US$/t: UG Sulphide 80; UG Transition 80.
Category | OreType | Tonnage | Commodity | Grade |
Measured
|
Sulphide
|
29 Mt
|
Zinc
|
4.1 %
|
Measured
|
Sulphide
|
29 Mt
|
Lead
|
4.05 %
|
Measured
|
Sulphide
|
29 Mt
|
Silver
|
57 g/t
|
Indicated
|
Sulphide
|
82 Mt
|
Zinc
|
3.65 %
|
Indicated
|
Transitional
|
3.7 Mt
|
Zinc
|
6.11 %
|
Indicated
|
Sulphide
|
82 Mt
|
Lead
|
4.45 %
|
Indicated
|
Transitional
|
3.7 Mt
|
Lead
|
4.21 %
|
Indicated
|
Sulphide
|
82 Mt
|
Silver
|
88 g/t
|
Indicated
|
Transitional
|
3.7 Mt
|
Silver
|
60 g/t
|
Inferred
|
Sulphide
|
23 Mt
|
Zinc
|
3.62 %
|
Inferred
|
Transitional
|
1.4 Mt
|
Zinc
|
5.55 %
|
Inferred
|
Sulphide
|
23 Mt
|
Lead
|
3.82 %
|
Inferred
|
Transitional
|
1.4 Mt
|
Lead
|
3.91 %
|
Inferred
|
Sulphide
|
23 Mt
|
Silver
|
93 g/t
|
Inferred
|
Transitional
|
1.4 Mt
|
Silver
|
64 g/t
|
Total Resource
|
Sulphide
|
133 Mt
|
Zinc
|
3.74 %
|
Total Resource
|
Transitional
|
5.1 Mt
|
Zinc
|
5.95 %
|
Total Resource
|
Sulphide
|
133 Mt
|
Lead
|
4.26 %
|
Total Resource
|
Transitional
|
5.1 Mt
|
Lead
|
4.13 %
|
Total Resource
|
Sulphide
|
133 Mt
|
Silver
|
82 g/t
|
Total Resource
|
Transitional
|
5.1 Mt
|
Silver
|
61 g/t
|
2022 Study Costs and Valuation Metrics :
Metrics | Units | LOM Total |
Initial CapEx
|
$M USD
|
......
|
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