Day: December 6, 2016

The Project configuration evaluated in the PFS is an owner-operated 790 tpd underground mine that will utilize overhand cut and fill mining with conventional mining equipment in a blast/load/haul operation. Mill feed will be processed in a 550 tpd comminution circuit consisting of primary and secondary crushing, grinding in a single ball mill followed by three floatation circuits producing lead, copper, and zinc concentrates. The concentrates will be trucked from site for smelting and refining.

Our earlier exploration illustrated that the Aida claim was at the center of the expanding Cordero resource, and that with additional drilling to focus on the higher grade mineralization that is evident in the dome, and potentially expand the resource, we could optimize the modeled open pit and improve our economic modeling for a mining operation. Our exploration team has just returned from Cordero and has spotted 28 holes for higher grade mineralization potential. The Company intends to pursue this exploration next year, once we see the price of silver move up in a sustained and positive way.