Deposit Types
The main types of deposit on the Rosita property are Cu-Au-Ag skarn at Santa Rita, R-13 and Tigre Negro, Fe-Cu-Au skarn at Magnetite Hill and Cu-Au-Ag porphyry at Bambana(Tipispan and T3 area). The skarn deposits are characterized by calc-silicate metasomatism, retrograde alteration and silicification. The porphyry copper mineralization at Bambana is characterized by propylitic, silicic and potassic alteration.

Skarn deposits form through the physical and chemical reaction between igneous rocks intruded into calcareous sedimentary rocks.They occur adjacent to (exo-skarn) or within (endo-skarn) an intrusive body. Emplacement of the intrusive is controlled largely by transfer structures in the back-arcbasin as well as splays along arc parallel structures in the magmatic arc environment. Alteration zoneis controlled by the temperature gradient and is overprinted by metasomatic and retrograde alteration. Mineralization is commonly vertically zoned from chalcopyrite-magnetite to chalcopyrite-bornite-gold-pyrite to pyrite-chalcopyrite. The copper-gold-silver deposit at the Santa Rita pit is examples of skarn mineralization.

The targets of this resource study are tailings and six historical low grade stockpiles around the Santa Rita pit.Each stockpile (North, Northeast, East, South and Southwest) was named based on the direction to the Santa Rita Pit. RST believes the stockpiles were originally derived from Santa Rita pit.

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Rosita is proposing to reclaim the Stockpile and tailings at Santa Rita with the use of local construction contractors. Conventional earth moving equipment such as hydraulic excavators or front end loaders will be utilized. The nature of the “loose” stockpile and tailings mineralized material does not require any drilling and blasting activities. The reclaimed material can be transported to the mobile crushing plant via articulated or rigid frame haul trucks.

The location of the stockpiles and tailings are in close proximity to the mobile crushing plant, and proposed process facility via existing roads in and around the area. The project does not require any selectivity or detailed grade control however, selective reclamation of specific stockpiles will take place. It is anticipated that the higher grade North Stockpile will be reclaimed initially and this has been addressed in the early year cash flow presented.

The bulk of the resources from each stockpile will be focussed on the indicated resources. However, where inferred resources are at the edges of stockpile they will be excavated first and thus inferred and indicated resources will be mixed in the feed to the treatment plant.

From the sequence of mining planned, the grades used for the cash flow statement have been defined as:

- First 5 years: 0.65 g/t Au; 10.0 g/t Ag (for the mill) 8.0 g/t Ag (for the heap leach); 0.80% Cu;

- Second 5 years;0.47 g/t Au; 7.79 g ........

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