Don Ese
Proposed Mining Method (PEA)
Underground
Resource
| Resource Category |
Cut-off | Tonnes | Au g/t |
Au Ounces |
Ag g/t |
Ag Ounces |
Last Update |
|---|---|---|---|---|---|---|---|
| Indicated | 1.5 AuEq g/T | 2,260,000 | 2.86 | 208,000 | 190 | 13,770,000 | MDA Sept 2012 |
| Inferred | 1.5 AuEq g/T | 2,305,000 | 2.72 | 202,000 | 160 | 11,829,000 | MDA Sept 2012 |
Geology
The Don Ese North vein appears to be an extension of the structure which hosts the highly successful Palmarejo mine and its satellite, Guadalupe, owned by Coeur d'Alene Mines (NYSE: CDE). Similar to its neighboring producers, Don Ese is a massive quartz vein with surrounding or internal quartz stockworks in volcanic rocks. Spatially associated with felsic intrusives, Don Ese exhibits characteristics typical of low sulfidation, epithermal deposits.
Exploration Objectives
Exploration activities are focused on the expansion of the initial Don Ese structure, both along strike and at depth. Drill testing is also planned at the recently discovered, high grade La Bavisa structure. The La Bavisa zone is located just north of the initial Don Ese structure and has yet to be included in the Company’s resource estimate for the San Miguel Project. The Company expects that La Bavisa will be included in an updated resource estimate in 2013 with its ultimate inclusion in a modified economic assessment. This zone’s close proximity to the planned underground mine at Don Ese could prove highly lucrative in an already robust Preliminary Economic Assessment which was released on February 28, 2013.
Source: NI 43-101 Technical Report for the San Miguel Project completed by Mine Development Associates in September 2012