The observed geologic and geochemical characteristics of the gold-silver-lead-zinc deposit at Camino Rojo are consistent with those of a distal oxidized gold skarn deposit. Characteristics of these deposits (Meinert, L.D., Dipple, G.M., and Nicolescu, S., 2005) are summarized as:
- Typically found in lithologies containing some limestone, but deposits not restricted to limestones.
- Formed by regional or contact metamorphic processes by metasomatic fluids, often of magmatic origin.
- Typically zoned deposits with a general pattern of garnet and pyroxene minerals proximal to the mineralizing heat and fluid source, and distal zones of bleaching.
- Low total sulphide content.
- Sulphide mineralogy comprised of pyrite, pyrrhotite, chalcopyrite, sphalerite, and galena.
- Highest gold grades are associated with late relatively lower temperature mineralizing events, often with potassium feldspar and quartz gangue.
- May be transitional to epithermal deposits.

The near surface portion of the Camino Rojo deposit has characteristics consistent with those of the distal skarn zone, transitional to epithermal mineralization, and overlies garnet bearing skarn mineralization encountered in the deeper portions of the system.

Skarn deposits often exhibit predictable patterns of mineral zoning and metal zoning. Application of skarn zoning models to exploration allows for inferences about the possible lateral and depth extents of the min ........

Mine operations will consist of drilling medium diameter blast holes (approximately 17 cm), blasting with explosive emulsions or ANFO (ammonium nitrate/fuel oil) depending on water conditions, and loading into large off-road trucks with hydraulic shovels and wheel loaders. Resource will be delivered to the primary crusher and waste to the waste storage facility southeast of the pit. There will also be a low-grade stockpile facility to store marginally economic Mineral Reserves for processing at the end of commercial pit operations. There will be a fleet of track dozers, rubber-tired dozers, motor graders and water trucks to maintain the working areas of the pit, waste storage areas, and haul roads.

A mine plan was developed to supply Mineral Reserves to a conventional crushing and heap leach plant with the capacity to process 18,000 tpd (6,570 ktpy). The mine is scheduled to operate two 10-hour shifts per day for 365 days per year.

Eventually, mining will be conducted below the water table, probably during Year 4 of commercial operation. Estimates of pit dewatering requirements have been prepared for cost estimation purposes. These are based on the median expected water in-flows. Additional hydrogeological studies underway will allow a better estimate of the pit dewatering requirements.

The recommended slope design is based on a 38° IR angle for the post mineral rocks on the east side of the pit. The south wall is designed at a 53° IR a ........

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