The mine concessions are located along the margins of the Sierra Madre Oriental physiographic province. The regional geology is comprised of platform and basin sediments that were formed during the Mesozoic era on top of Paleozoic and Precambrian basement rocks. The region has undergone compression resulting in complex folding, faulting and uplift. Pliocene age intrusions are emplaced into the stratigraphy on a local scale.

Locally, the Carrizal and Monte mines contain mineral zones that are hosted in limestone and calcareous shales of the Las Trancas, Tamaulipas, and Soyatal formations 1.

The Zimapan Mine consists of fourteen mineral zones that are characterized by polymetallic replacement mineralization of Pliocene age. Silver, lead, zinc and copper minerals have preferentially replaced carbonate host rocks and pre-existing skarn bodies to produce disseminated, semi-massive sulfide and massive sulfide bodies that occur in proximity to monzonitic intrusions and quartz-feldspar porphyry dikes.[05/22/2019 Press Release, p.2]

The Zimapan Mine milling facility has a capacity of 3,200 tonnes per day and and has three selective circuits for lead, zinc and copper. [Oct 2019 Corporate Presentation, p. 12]

Based on historical production records provided by Carrizal to Santacruz the Zimapan Mine milling facility prior to 2019 operated at a rate of 60,000 tonnes to 65,000 processed per month based on 26 operating days per month, processing mineralized material with head grades and metal recoveries in line with current values. During 2019 the milling facility has operated at a rate of 50,000 to 57,000 tonnes per month. The decreased production is primarily the result of decreased availability of certain mine production equipment. This situation is being addressed by management and it is expected that production rates will increase back to historical levels by the end of Q3 2020.