GEOLOGY & RESOURCES
GEOLOGY & MINERALIZATION
Gold oxide mineralization at the Fenix Gold Project is sub vertical and is of a bulk, disseminated style. It is controlled by NW-SE faulting and the gold mineralization occurs in Black Banded Quartz veins, hosted in complex breccias and bound by fault structures.
Based on the geological features observed, the project is classified as Low Sulphidation type of mineralization. The mineralization is 2,500 m long, up to 600 wide and up to depths of 600 m. The mineralization remains open at depth and to the North East.
Metallurgical studies indicate that gold is usually fine and occurs in both native form and as submicroscopic gold in iron oxides. Gold composition is of high purity which is on average > 99% Au.
The Fenix Gold Project mineralization is comparatively clean with trace occurrences of copper, sulphur and mercury, even at depths of 600m below the surface. This makes the Fenix Gold Project unique in the Maricunga region as it is a pure oxide gold deposit with no transitional or sulphide mineralization.
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MINERAL RESOURCES & RESERVES
MEASURED & INDICATED
PROVEN & PROBABLE
The mineral resource estimate was updated in 2019, based on data collected from 91 diamond drill holes (30,533 m of core) and 291 reverse circulation holes (84,101 m of RC cuttings) which is all the drilling completed on the project between 2010 and 2019. Surface samples (860 two-meter trench samples) have been used for the first time in the resource estimate.
A geological model has been created for the first time for this deposit based on the drill hole relogging program completed in 2018/2019. A grade shell of 0.15 g/t Au was generated in Leapfrog Software and used as an outer bounding shell for constraining the resource estimate. Resource model grades were estimated using ordinary kriging.
The table below summarizes the global mineral resource estimate for the Fenix Gold Project which is also constrained within a $1,500/ounce optimized open pit. The Mineral Resources are inclusive of the Mineral Reserves.
Mineral Resources reported is inclusive of mineral reserves;
The table includes all Measured, Indicated, and Inferred Resources contained within the “Resource Pit”, whichrepresents the test for eventual extraction applied;
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certaintythat all or any part of the Mineral Resources estimated will be converted into Mineral Reserves;
Mineral Resources are reported in accordance with Canadian Securities Administrators (CSA) National Instrument 43-101 (“Standards of Disclosure for Mineral Projects” (NI 43-101) and have been estimated in conformity with generally accepted Canadian Institute of Mining, Metallurgy and Petroleum (CIM) "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines;
Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, andnumbers may not add due to rounding;
The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.
The Mineral Reserves presented in the following table are constrained within a $1,225/oz optimized open pit and arereported as in-situ dry million tonnes and include 3% mining dilution and 97% mining recovery using a cut-off grade of 0.24 g/tAu.
The Mineral Reserve estimate with an effective date of August, 15 2019 is based on the Mineral Resource estimate with the same effective date that was prepared by Mario Rossi, Principal Geostatistician of GeoSystems International Inc. The Mineral Reserve was estimated by Mining Plus with supervision by Raul Espinoza, Senior Open Cut Engineer with Mining Plus Peru S.A.C. Mineral Reserves are estimated within the final designed pit which is based on the $1,225 /oz pit shell. The minimum cut-off grade was 0.24 g/t gold. Average life of mine costs are $2.42/tonne mining, $4.10/tonne processing, and $1.99/tonne processed G&A. The average process recovery was 75% for single stage crushing. Tonnes and gold ounces are both reported in millions. Small differences in total tonnage and grade may occur due to rounding. The Mineral Resource estimate is inclusive of Mineral Reserves.