Mineralization within the Cordero Resource is porphyry-style disseminated, stockwork veining sulfides within the intrusives, associated contact replacement and skarn type mineralization and discordant, through going veins (1-2 m widths) with up to 500 m strike lengths. Diatremes within the resource are characterized by disseminated sulfides in mineralized breccia matrix material, stockwork veined and replaced clasts and late stockwork veins that entirely cut the mineralized diatreme breccia. Manto clasts are locally present.

A common characteristic of mineralization in each of the four intrusive centers that host the resource is very complex mineral paragenesis with multiple pulses of mineralization (and associated hydrothermal alteration). At least seven mineralization pulses have been recognized in the Pozo de Plata Diatreme.

Silver is dominantly associated with argentiferous galena, but metallurgical testing shows it also occurs in the sphalerite. By-product gold is locally present in the galena, sphalerite and pyrite.

Gangue mineralogies are zoned within the resource. Rusty weathering carbonate (no quartz) is the dominant gangue in the upper part of the resource (250-650-meter depths from surface). Quartz gangue in porphyry style stockwork veins and pervasively disseminated modes (including pervasive silicification, k-feldspar flooding and hydrothermal biotite) gradually increase at depths below about 500 m from surface. The gangue mineralogy patterns in porphyry style mineralization of the resource (stockwork veining, disseminations and pervasive gangue flooding) described above are cut by the narrow (1-2 m wide) northeast trending high grade veins of the district, which contain abundant quartz, jasperoid and are exposed to the surface in outcrop.

Mining of the Cordero deposit will be done by open pit methods utilizing a traditional drill, blast, load and haul sequence to deliver mill feed to the primary crusher and the waste to waste dumps located to the north and south of the proposed pits. The pit design is based on a 10-meter bench height to match the resource model bench height. The mine plan calls for the delivery of 40,000 tonnes per day (tpd) of material to the mill for a 29-year schedule and during peak production about 100,000 tpd of total material (mill feed plus waste) will be mined.

The processing at Cordero will be sequential selective flotation of sulfides to produce two concentrates: high-value lead concentrate containing significant amounts of silver and gold and zinc concentrate containing lesser amounts of silver and gold.

The following items summarize the process operations required to extract gold, silver, lead and zinc from the Cordero sulfide mineralized material.

- Size reduction of ore by a primary gyratory crusher to reduce the size from run-of-mine (ROM) size of minus 900 millimeters (mm) or minus 30 inch (in) to minus 150 mm or minus 6 inch.

- Storing primary crushed material in a covered coarse ore stockpile and then reclaiming by apron feeders and a conveyor belt to the grinding circuit.

- Grinding the crushed material in semi-autogenous (SAG) mill to reduce the ore size from 150 millimeters to a transfer size with a P80 of 2.6 millimeters for the next step of grinding. The SAG mill will operate in close ........