The Soto Norte mineral deposit is classified as a high-sulphidation epithermal deposit, with gold, silver and copper occurrences, mainly in sulphides. The deposit is related to the Miocene porphyry stocks and dikes that have been identified in the area, cross cutting the older sedimentary, igneous and metamorphic rocks.

Mineralisation within the Soto Norte Project comprises parallel anastomosing veins which occupy the composite fault system. These veins have various widths and characteristics depending upon the open spaces provided by the fault movements, which occurred over time, as evidenced by multiple mineralised events recorded within the individual vein structures and host rocks.

Veins at Mascota exhibit open-space filling textures along the Mascota related structures, indicating low overburden stress consistent with a shallow crustal emplacement typical of epithermal vein systems.

Brecciation is apparently of a hydrothermal origin (angular fragments, commonly monolithic, locally with jigsaw textures and, typically fragment-supported, dominantly cemented by hydrothermal minerals) and is observed in most mineralised zones, with the common feature that the brecciated fragments consist of local wall rock.

The mineralisation has a variety of textures of cement fill that are characteristic of an epithermal environment, with colloform bands of quartz and colloform pyrite that indicate super saturation in a relatively low temperat ........

The parallel vein systems in the Soto Norte Project area are defined over a strike length of 2.6 km and the two main vein systems considered, Mascota and Gigante, each have strike lengths of around 2.0 km. Other minor vein structures of mining interest have strike lengths as low as 15 m.

The majority of vein structures are sub vertical, dipping from 70 to 80° and can range in true width from 1 m or less to over 30 m (typically between 3 and 18 m). There are some vein structures in the hangingwall zones which dip at 60°, and an isolated zone in the southwest where the vein lays over on a 15° dip, closer to surface.

The vein structures extend to surface, with significant variances in elevation due to the terrain, and are open at depth and along strike. The depth limit of the resources considered for mining is 2,100 mRL.

The minimum stope width defined for mining is 2.5 m and stoping blocks are categorised as follows:

- Longitudinal narrow stoping for stope widths from 2.5 to 5m;
- Bulk (or wide) longitudinal stoping for stope widths greater than 5m.

The predominant mining method considered for the Project is Modified Avoca for stoping blocks identified as longitudinal narrow and wide stopes. CRF is applied to limited specific areas of poor ground classification.

The mine plan supporting the Mineral Reserve targets a sustainable production rate of 2.6 Mtpa over a 7- year period. The ramp up to full produc ........

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