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Location

Zacatecas, Mexico

Ownership

100%

Status

PEA complete

Type of Mine

Open pit heap leach

M&I Resources

9.7 Moz Total M&I Gold Resources *

Estimated Startup

Q1 2021

PEA Throughput

18,00 tpd

 PEA Estimated Avg. Annual Production

97,472 oz Au, 415,981 oz Ag

 District Scale Exploration Potential

 206,000 Ha land package

*Refer to “Preliminary Economic Assessment NI 43-101 Technical Report on the Camino Rojo Gold Project, Municipality of Mazapil, Zacatecas, Mexico” dated June 19, 2018 located on this website or on SEDAR

Please refer to our legal disclaimer.

resource     camino rojo     corporate presentation

CR area

Oxide Heap Leach Project with Large Sulphide Resource Below

The Camino Rojo Project is a high quality, advanced oxide heap leach project in a low risk jurisdiction. This type of project leverages management’s and the board’s extensive exploration, development and operating experience in Mexico.

  • Near-surface oxide gold deposit with a large deeper gold-silver-zinc-lead sulphide zone
  • Located 50km SE of Penasquito Mine in the State of Zacatecas
  • Eight mineral concessions covering approximately 206,000 hectares
  • Ejido agreements in place; strong community relationships
  • Water concessions granted
  • Excellent regional infrastructure: 4-lane highway, roads, major powerline, rail and water and no residents over the development area
  • Camino Rojo is estimated to include measured and indicated mineral resources of 9.65 million ounces of gold and 102.4 million ounces of silver (354.9 million tonnes at 0.85 g/t gold and 8.97 g/t silver) and an inferred mineral resource of 1.82 million ounces of gold and 16.21 million ounces of silver (65.2M tonnes at 0.87 g/t gold and 7.73 g/t silver).  

Additional Upsides

  • Agreement for lay-back on adjoining property
  • Steepening pit wall angles
  • Larger crush size
  • Increase in silver recoveries
  • Continue to explore and define sulphide resource below pit
  • Continue regional exploration and target evaluation 

PEA Summary

Independent Mining Consultants (IMC) completed a mineral resource estimate while Kappes, Cassidy & Associates (KCA) and IMC completed a Preliminary Economic Assessment (PEA) in May 2018.
This PEA and mineral resource support a technically simple, open-pit mine and heap-leach operation. The project offers low capital and operating costs, rapid payback, and strong financial performance.

The PEA is preliminary in nature and includes the use of inferred mineral resources, which are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that PEA results will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability.

The PEA is based on an open pit mine using conventional trucks and loaders transporting heap leach material to a crushing plant and waste material to a waste rock pile both located within 500 metres of the pit.  Material will then be conveyed and stacked onto an adjacent heap leach pad.  The site’s proximity to infrastructure, low stripping ratio, compact footprint and flat pad location all contribute to the relatively low estimated production costs and project simplicity.

2018 PEA HIGHLIGHTS
Pre -Tax – NPV (5%) / IRR $231 M / 38.1%
After-Tax – NPV (5%) / IRR $121M / 24.5%
Payback 3.3 years
Production Rate per Day 18,000 t
Total Material to Leach Pad 42.5M t
Average Grade Au / Ag (g/t) 0.71 / 13.56
Contained gold / silver ounces 966,000 / 18,517,000
Average Recovery Au / Ag 67% / 15%
Average Annual Gold Production 97,500 oz
Strip Ratio 0.58
Initial Capex $125 M
Avg. LOM production costs
(per tonne of material processed)
$8.02
Total By-Product Cash Cost1 ($/oz Au) $499
All-In Sustaining Cost1 ($/oz Au) $555
Gold Price (US$/oz) $1,250
Silver Price (US$/oz) $17.00

Work Plan

With the Preliminary Economic Assessment (PEA) now complete, the Company has commenced feasibility work. Completion of this work is anticipated in the first half of 2019. Six metallurgical composites are each undergoing a set of 3 additional columns tests at varying crush sizes to determine optimal crush size. A program of reverse-circulation (RC) drilling to explore for water well locations and geotechnical investigations under proposed infrastructure are underway.

Environmental assessment activities required for permitting have been initiated. The Company has a comprehensive Community and Social Responsibility (CSR) program.

Exploration work to evaluate previously identified targets and develop new targets for gold and silver mineralization on the large property commenced n early 2018. Overburden cover hinders exploration, but as the mineralization previously discovered on the property demonstrates, shallow cover can mask extensive near-surface mineralization. Prospective targets will be geologically mapped, sampled and potentially trenched. Reconnaissance – style ground geophysics is being carried out to test along major structures.

On targets where initial work is positive, drilling will be planned.

Resources

Project

Category

Tonnes

Gold (g/t)

Gold (oz)

Silver (g/t)

Silver (oz)

Lead (%)

Lead (Mlb)

Zinc (%)

Zinc (Mlb)

Camino Rojo Oxide (Leach)

Measured

16,147,000

0.794

412,100

15.44

8,014,000

0.26

92.1

0.39

140.6

Indicated

84,692,000

0.734

1,969,300

12.15

33,076,000

0.19

363.7

0.36

674.3

Measured & Indicated

100,839,000

0.718

2,381,300

12.67

41,091,000

0.21

455.8

0.37

814.8

Inferred

4,858,000

0.772

120,600

5.6

874,000

0.07

7

0.24

25.9

 

                   

Camino Rojo Sulphide (Mill)

Measured

9,818,000

0.864

272,600

7.45

2,352,000

0.08

16.4

0.28

60.1

Indicated

244,251,000

0.89

6,992,200

7.5

58,934,000

0.07

385.6

0.26

1398.2

Measured & Indicated

254,069,000

0.889

7,264,800

7.5

61,286,000

0.07

402

0.26

1458.3

Inferred

60,342,000

0.875

1,696,900

7.9

15,334,000

0.05

68.1

0.23

310.8

*Refer to “Preliminary Economic Assessment NI 43-101 Technical Report on the Camino Rojo Gold Project, Municipality of Mazapil, Zacatecas, Mexico” dated June 19, 2018 located on this website or on SEDAR