Deposits
The mineral resource areas within Project Fenix are classified as low to intermediate-sulphidation epithermal precious metals deposits. Deposits of this type are common throughout the world and are very common throughout the Sierra Madre province of Mexico. The Project Fenix deposits can be silver dominant (El Gallo Silver) or gold dominant (El Gallo Gold). Although the mineral resource areas have differing mineralogy and morphology, all deposits in the Project have quartz stockwork and quartz breccia as the main mineralization hosts.

El Gallo Silver
A low to medium sulphidation silver-dominant epithermal precious metal deposit. Silver mineralization is associated with minor gold as well as anomalous lead and zinc. Certain features of the El Gallo Silver deposit distinguish it from many other typical Mexican epithermal deposits. For example, mineralization is not hosted in through-going fault veins instead it is hosted in breccias and quartz stockwork zones associated with hypabyssal intrusions and pre-existing breccia zones. Often, the mineralized zones are shallowly-dipping, controlled by sill-like intrusive contacts and other lithologic contacts or subhorizontal structures.

El Gallo Gold El Gallo Gold consists of low- to intermediate-sulphidation epithermal gold and silver mineralization. The majority of the El Gallo Gold deposits are gold dominant and locally contain strongly anomalous base metals. Mineralized zon ........

Mining Sequence Description
The Project Fenix Phase 1 production starts off with the mining (unloading) of the 3/8” crushed Heap Leach Material from the El Gallo Gold Project by dozing, loading and hauling the material using a bulldozer, two wheel loaders and an articulated dump truck to feed a hopper at the base of the leach pad that will subsequently feed a conveyor that will transport the ore to the processing plant, located immediately adjacent to the heap leach pad.

The mining of the HLM will occur during years one to six and El Gallo Silver (EGS) for Phase 2 begins in year seven and will continue to year ten.

The Project Fenix Phase 2 starts with El Gallo Silver open pit production which is expected to come on stream at the beginning of year seven. Phase 2 plant construction will commence 36 weeks before Phase 1 production (HLM) is depleted in that year. From year seven EGS will supply 100% of the Run of Mine (ROM) required for the mill. El Gallo Silver open pit mine will operate continuously for four years in succession, with the tenth year if the project being its final year of operation.

The mill feed from El Gallo Silver Phase 2 will be trucked over public and purpose-built roads to Project Fenix processing facilities. The estimated total distance that the mineralized material needs to be hauled is 9.3 km for El Gallo Silver.

The unloading of the HLM and the mining of the El Gallo Silver pits will be conducted usi ........

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