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  • The El Mochito Mine

    Mine Zinc, Lead, Silver Milling/Processing Capacity 2,300 tpd nameplate capacity
    Location Las Vegas, Honduras Products Zinc and lead concentrantes
    Mining Type Underground Off-take 100% - Nyrstar NV (9-year)
    Processing Method Mill and standard flotation concentrator

    About the Operation

    The El Mochito property is located in northwest Honduras, near the town of Las Vegas, approximately 88 km southwest of San Pedro Sula and 220 km northwest of the capital city, Tegucigalpa. Production began in 1948 and has continued for 70 years almost continuously. The property consists of an underground zinc-lead-silver mine and a concentrator producing separate zinc and lead concentrates. Concentrates are trucked daily to Puerto Cortes for storage and then shipment once sufficient material is stockpiled.

    el-mochito
  • Optimization Activities

    The Ascendant management team has taken detailed review of current mine operations with the mine staff and its technical consultants to construct a plan to optimize operations at the El Mochito Mine with the goal of delivering sustainable profitability. The Company has identified several immediate optimization opportunities that should have a material impact on cash flows in the near-term and based upon the review to date, management remain highly confident that the mine production rates in excess of 2,200 tpd combined with lower unit costs to the mid or low $50/t range can be achieved over the next 12 to 18 months.

    The Company is currently focused on immediate opportunities to increase mine production and underground development, improve maintenance programs, review equipment status and focus on an overall reduction of operating costs. The initial optimization plan target areas are listed below:

    • safety

      Underground Safety

      We remain committed to improving the overall safety standards at El Mochito. Ascendant has continued to instill an improved safety culture at the mine and addressed deficiencies in various safety areas such as adding fire extinguishers, refuge areas and emergency signage underground.

    • time

      Reduce Unproductive Time per shift

      Currently it is estimated that up to a third of every shift is lost in unproductive time due to logistics, poor planning and communications. Ascendant management believes an improved focus on scheduling, more detailed supervision and accountability should reduce this lost time to more acceptable levels, adding additional productive hours per day.

    • development

      Horizontal Development

      During the latter part of 2016 horizontal development was reduced to very low levels. In order to ensure sufficient working areas and to gain access to new higher grade zones management are aiming to accelerate underground development in excess of 1,000 ft per month. Increased underground flexibility should support a more stable operating environment moving forward.

    • logistics

      Haulage Logistics

      Maximizing ore tonnes per truck trip and increasing the number of trips per shift can be achieved, including appropriate staffing of vehicles to maximize productive hours per day. Various programs are being implemented including driver priority at shift change, better truck loading and better underground planning to ensure over utilization of the fleet is maximized. For every additional truck cycle per shift management estimates that this could add approximately 48tpd per truck. As such assuming 7 trucks are available this could add more than 350 tpd of combined ore and waste movement.

    • fleet

      Fleet Availability and Utilization

      Continued improvement in the maintenance programs remains a priority given the age of much of the fleet. A lack of preventative maintenance in the past has resulted in lower availability which Ascendant is currently addressing. Once availability is enhanced, the focus will shift to improving fleet utilization. We note fleet availability rates have already begun to show improvement and are now closer to 70% as compared to 60% in the second half of 2016 given more focus on preventative as opposed to reactive maintenance. That said, overall utilization rates remain low at closer to 55% due planning and communication issues. As part of this process we plan to undertake a review of the fleet to determine the optimal size which may lead to fleet renewal to support sustainable long-term production targets.

      June 1, 2017: Click here to view images of the first truck delivery at El Mochito

      June 22-25, 2017: Scoop Truck, Scissor Lift and Haul Truck Deliveries

      October, 2017: Haul Truck Delivery


    • costs

      General Operating Costs

      Ascendant is placing renewed focus on reducing costs related to production and to ancillary activities with an initial target of a 10% reduction. Ascendant is in the process of commencing several initiatives to reduce overall input costs, external service costs and extraneous expenses.

  • Historical Production Profile

  • Site Facilities

    Over its long mine life the site has evolved from a residential camp with all the supporting infrastructure and housing. That said, outside of some senior management and guest housing the bulk of the housing has been turned over to the local community and is now part of the town of Las Vegas. The operations consist of an underground zinc-lead-silver mine and a nominal 2,300 t/d flotation concentrator producing zinc and lead concentrates. The site has two shafts, one for production (3,500 tpd capacity of ore and waste) and one for men and materials. The Nameplate Capacity of the concentrator is reported to be 2,300 t/d, although current operations are somewhat below this level at around 2,000 tpd as underground development work is re-accelerated to better match mine production to milling capacity. The ability to expand the plant to 3,000 tpd is deemed possible for a relatively modest investment subject to increased resource development. Mineralized material is mined by underground methods from the Nacional, Santo Niño, Lower San Juan, Salva Vida, Yojoa, La Leona, Imperial and Canoe orebodies and is treated in a centralized processing plant. Zinc and lead concentrates are produced by differential flotation and shipped to a warehouse at the port of Puerto Cortés, 35 km north of San Pedro Sula on the Gulf of Honduras. Approximately 30% of process tailings are used as backfill for the mined stopes.

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  • Reserves and Resources

    The economic mineralization at the El Mochito Mine occurs as both manto and chimney skarn deposits in Lower Cretaceous limestones. The El Mochito property is located in northwest Honduras, near the town of Las Vegas, approximately 88 km southwest of San Pedro Sula and 220 km northwest of the capital city, Tegucigalpa. Production began in 1948 and has continued for 70 years almost continuously. The property consists of an underground zinc-lead-silver mine and a concentrator producing separate zinc and lead concentrates. Concentrates are trucked daily to Puerto Cortes for storage and then shipment once sufficient material is stockpiled.

    The ore deposits are structurally controlled with the manto deposits are typically flat dipping, following the bedding of the host rock, and are relatively extensive in horizontal dimension, rendering them suitable for room and pillar stoping methods. Chimney deposits are typically steeply dipping and cut across the host rocks over a significant vertical distance. In general, the chimneys are of higher grade than the mantos. The chimneys are mined principally by longhole stoping methods.

    The last published mineral resources and mineral reserves for El Mochito were released by the previous owner, Nyrstar, as at the end of 2015 in a news release dated 27 April, 2016. The historical resources estimates are provided below.

    2015 Historical Mineral Reserve Statement

    Metal

    Unit

    Measured
    Resources

    Indicated
    Resources

    Measured
    Plus
    Indicated
    Resources

    Inferred
    Resources

     

    Mt

    1.38

    4.03

    5.40

    3.86

    Zinc

    %

    5.22

    4.72

    4.85

    5.11

    Lead

    %

    1.93

    1.65

    1.72

    1.38

    Silver

    g/t

    62.10

    38.80

    44.70

    35.00

    Nyrstar, 2016b, 2015 Mineral Resource and Mineral Reserve Statement 27 April, 2016.

    2015 Historic Mineral Reserve Statement

    Metal

    Unit

    Proven
    Reserves

    Probable
    Reserves

    Total
    Mineral
    Reserves

     

    Mt

    0.57

    1.34

    1.91

    Zinc

    %

    4.59

    4.94

    4.84

    Lead

    %

    2.63

    2.27

    2.38

    Silver

    g/t

    77.40

    47.60

    56.50

    Nyrstar, 2016b, 2015 Mineral Resource and Mineral Reserve Statement 27 April, 2016.

    The mineral resources and mineral reserves presented are historical in nature, as described in National Instrument 43-101 - Standards of Disclosure for Mineral Projects (NI 43-101). They were prepared prior to the agreement to acquire the property by Morumbi and a Qualified Person has not yet verified them as current. At this time, the relevance and reliability of the estimates are not known. The estimates are classified using the categories set out in the Canadian Institute of Mining, Metallurgy and Petroleum's CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines as required by NI 43-101. However, Morumbi is not treating the mineral resources or mineral reserves as current.

    The mineral resources are reported inclusive of mineral reserves. Mineral resources which are not mineral reserves do not have demonstrated economic viability.

    The 2015 mineral resources and mineral reserves are not supported by a recent NI 43-101 Technical Report. The most recent NI 43-101 report was filed by Breakwater Resources Ltd. in March, 2010.

    Scientific and Technical Information

    The scientific and technical information contained on this website relating to the El Mochito Mine is supported by, is derived from, and in some instances is a direct extract from the technical report entitled "NI 43-101 Technical Report on the El Mochito Zinc-Lead-Silver Mine, Honduras" dated September 9, 2016 (effective date of December 31, 2015), prepared by Bogdan Damjanovic, P.Eng., B. Terrence Hennessey, P.Geo., Christopher R. Lattanzi, P.Eng., David Makepeace, M.Eng., P.Eng. and Jane Spooner, P.Geo. found Here

  • Exploration

    The known ore deposits at El Mochito are structurally controlled along known fault lines providing clear exploration targets to expand total resources at site, albeit at greater distances from the shaft locations. The mine has a long and successful track record of finding new manto and chimney deposits along the prominent fault and mineralized trend systems, suggesting that the geological model should continue to serves as a guide for finding future resources. These trends, along with long surface drill holes, have provided good exploration targets to find addition mineralization. In addition to exploration near mine, the El Mochito property comprises six mining concessions totaling approximately 11,000 ha, much of which has not undergone significant exploration in recent years and serval historical targets are available to follow up.

    2017 Exploration Program

    Ascendant has commenced its 2017 underground exploration program targeted to upgrade and expand the overall resources at its El Mochito mine. Drilling has commenced and Management is currently planning for an exploration program consisting of 33,200 meters of drilling at an anticipated cost of US$3 million by the end of 2017. The program will consist of approximately 18,200 meters of definition drilling, targeted at converting a portion of the Inferred resources into Measured and Indicated resource categories.

    An additional 15,000 meters of greenfield exploration is targeted to add new resources with a focus on high-grade chimney material by defining the continuation of known chimneys. The program is planned to focus on seven key areas that have the potential to be brought into the mine plan in the next 3-24 months: Esperanza, Victoria, Santa Elena, Deep North, Deep East, Port Royal and Palmar. Each of these areas have the potential to host new, high-grade resources and have been selected based on the limited development required to access them.

  • 2017 Drill Hole Results

    Results to date from 78 diamond drill holes; 13,617m of 33,200m exploration and definition drilling program:

    Table 1: Significant Assays
    Drill holes From To Interval
    (m)
    True/Apparent* width (m) Zn (%) Pb (%) Ag (g/t) Area
    10839** 191.41 196.69 5.27 4.75 2.9 2.5 67 Palmar Dyke
    including 195.07 196.69 1.62 1.45 7.9 6.7 164 Palmar Dyke
    10846** 173.13 192.69 19.57 17.61 5.3 3.8 83 Palmar Dyke
    including 173.13 179.53 6.40 5.76 3.9 3.2 66 Palmar Dyke
    including 180.44 184.40 3.96 3.57 6.3 4.4 97 Palmar Dyke
    including 188.67 192.69 4.02 3.62 11.7 8.1 179 Palmar Dyke
    10852** 40.75 41.76 1.01 0.91 4.4 12.4 1,565 Palmar Dyke
    and 184.86 190.20 5.33 4.80 4.5 3.0 394 Palmar Dyke
    and 195.07 201.63 6.55 5.90 5.6 4.2 75 Palmar Dyke
    including 196.60 198.12 1.52 1.37 6.5 6.8 116 Palmar Dyke
    Including 199.64 201.63 1.98 1.78 10.9 6.7 118 Palmar Dyke
    10854** 38.25 39.47 1.22 1.10 0.7 0.8 658 Palmar Dyke
    and 40.54 41.76 1.22 1.10 1.4 1.2 148 Palmar Dyke
    and 166.12 176.48 10.36 9.33 3.9 2.2 59 Palmar Dyke
    and 191.11 193.55 2.44 2.19 9.8 1.3 80 Palmar Dyke
    10856** 164.59 166.73 2.13 1.92 14.0 6.4 188 Palmar Dyke
    and 207.26 211.23 3.96 3.57 6.9 5.1 58 Palmar Dyke
    10848** 29.41 30.18 0.76 0.69 1.0 0.7 324 Palmar Dyke
    and 179.22 181.05 1.83 1.65 3.2 4.5 126 Palmar Dyke
    10842** 21.64 23.62 1.98 1.78 2.2 1.6 220 Palmar Dyke
    and 171.91 173.58 1.68 1.51 1.4 0.9 1,882 Palmar Dyke
    10837** 129.84 131.22 1.37 1.23 29.7 12.7 277 Palmar Dyke
    and 135.33 136.40 1.07 0.96 3.3 2.7 1,405 Palmar Dyke
    and 146.30 152.40 6.10 5.49 17.3 3.6 142 Palmar Dyke
    including 146.30 149.05 2.74 2.47 34.1 7.0 287 Palmar Dyke
    and 160.63 167.03 6.40 4.11 2.6 1.7 203 Palmar Dyke
    including 165.81 167.03 1.22 1.10 4.9 3.2 665 Palmar Dyke
    10844** 174.50 184.10 9.60 8.64 10.7 4.0 95 Palmar Dyke
    including 178.31 181.05 2.74 2.47 15.2 7.1 163 Palmar Dyke
    10828 327.69 328.03 0.34 0.30 4.0 3.8 65 Santa Elena
    and 332.93 362.41 29.47 26.53 5.7 0.6 18 Santa Elena
    including 332.93 334.37 1.43 1.29 11.3 7.7 90 Santa Elena
    including 337.41 338.72 1.31 1.18 14.1 0.1 7 Santa Elena
    including 341.38 347.78 6.40 5.76 6.5 0.2 22 Santa Elena
    including 355.40 362.41 7.01 6.31 11.0 0.3 10 Santa Elena
    10833 345.34 389.53 44.20 35.36 5.6 2.0 31 Santa Elena
    including 345.34 352.04 6.71 5.36 7.8 2.6 35 Santa Elena
    Including 346.86 348.48 1.62 1.29 16.3 5.5 73 Santa Elena
    and 355.55 362.41 6.86 5.49 8.3 0.9 14 Santa Elena
    and 363.63 374.90 11.28 9.02 5.9 5.1 69 Santa Elena
    and 382.83 389.53 6.71 5.36 7.2 0.9 37 Santa Elena
    including 385.27 386.79 1.52 1.22 17.0 1.3 95 Santa Elena
    10838 330.37 345.03 14.66 12.02 7.8 3.7 46 Santa Elena
    including 330.37 337.11 6.74 5.52 9.2 8.0 95 Santa Elena
    including 332.54 337.11 4.57 3.75 11.6 10.2 125 Santa Elena
    and 343.20 345.03 1.83 1.50 11.4 0.0 8 Santa Elena
    10826 369.20 393.19 23.99 17.13 5.8 1.2 36 Esperanza
    Including 369.20 380.09 10.88 7.77 5.6 2.5 57 Esperanza
    Including 369.20 370.33 1.13 1.68 7.1 7.3 136 Esperanza
    including 372.86 376.12 3.26 2.33 7.5 2.7 72 Esperanza
    including 383.44 393.19 9.75 6.97 7.3 0.2 21 Esperanza
    10834 307.54 309.37 1.83 1.31 11.0 0.0 9 Esperanza
    and 315.47 325.37 9.91 7.08 7.3 0.5 22 Esperanza
    and 329.18 337.41 8.23 5.88 3.4 0.6 24 Esperanza
    including 329.18 330.71 1.52 1.09 5.1 1.6 97 Esperanza
    10840 234.39 237.74 3.35 2.39 4.6 4.8 117 Esperanza
    and 354.97 360.76 5.79 3.18 5.2 0.2 14 Esperanza
    and 368.50 379.84 11.34 8.10 6.7 2.8 171 Esperanza
    including 368.50 374.60 6.10 4.35 3.8 2.1 187 Esperanza
    including 376.12 379.84 3.72 2.66 13.8 5.1 213 Esperanza
    10843 283.46 306.02 22.56 18.07 4.3 3.3 45 Esperanza
    and 312.12 314.55 2.44 1.74 6.7 0.1 12 Esperanza
    10847 387.25 410.87 23.62 17.53 6.2 2.2 41 Esperanza
    including 387.25 399.59 12.34 8.82 9.4 4.1 70 Esperanza
    and 405.08 410.87 5.79 4.14 5.5 0.4 22 Esperanza
    10850 420.01 429.77 9.75 6.97 9.4 3.1 54 Esperanza
    and 436.78 438.91 2.13 1.52 0.0 0.2 306 Esperanza
    10853 344.82 363.93 19.11 13.65 4.0 0.9 30 Esperanza
    Including 344.82 350.22 5.39 3.85 4.6 1.3 20 Esperanza
    including 356.92 363.93 7.01 5.01 5.7 0.7 28 Esperanza
    10823 49.99 52.76 2.77 2.50 8.0 4.3 54 Victoria
    including 51.51 52.76 1.25 1.12 14.6 8.7 107 Victoria
    10824** 86.87 88.48 1.62 1.45 2.6 2.1 50 Victoria
    10827** 40.05 41.45 1.40 1.26 8.6 5.6 56 Victoria
    10841** 126.34 128.02 1.68 1.51 2.2 1.8 352 Victoria
    and 144.29 146.33 2.04 1.84 23.8 2.0 134 Victoria
    and 147.40 148.74 1.34 1.21 3.6 2.2 151 Victoria
    and 155.14 156.97 1.83 1.65 27.3 0.1 25 Victoria
    10845** 139.29 158.19 18.90 17.01 5.0 2.0 53 Victoria
    including 149.35 158.19 8.84 7.96 8.1 3.1 69 Victoria
    including 149.35 150.88 1.52 1.37 14.3 2.7 47 Victoria
    and 154.23 155.30 1.07 0.96 17.0 10.4 211 Victoria
    and 156.97 158.19 1.22 1.10 8.6 5.0 101 Victoria
    and 103.33 104.55 1.22 1.10 1.6 1.4 215 Victoria
    10851** 156.36 158.50 2.13 1.92 20.8 0.5 93 Victoria
    10855 98.63 102.29 3.66 3.29 4.7 3.7 469 Victoria
    including 100.58 102.29 1.71 1.54 8.4 5.3 740 Victoria
    and 144.38 149.35 4.97 4.47 11.0 4.3 123 Victoria
    and 153.92 156.97 3.05 2.74 10.2 1.4 53 Victoria
    10836, 10849, 10857 No significant assays
    * True thickness is not known at this time in the case of Victoria and Palmar Dyke
    ** Step-out drill hole
    Table 2: Drill Hole Information
    Local Coordinates
    DDH No. East North Elevation Azimuth Inclination Depth Area UG Level Category
    10826 2,632.5 12,212.1 10,796.00 12 -47 1360 Esperanza 1815 In-fill
    10834 2,631.9 12,213.1 10,796.00 5 -51.5 1170 Esperanza 1815 In-fill
    10840 2,632.0 12,213.6 10,796.00 4.5 -44.5 1307 Esperanza 1815 In-fill
    10843 2,632.5 12,214.4 10,801.00 7.5 -55.2 1130 Esperanza 1815 In-fill
    10847 2,632.8 12,217.2 10,801.00 7 -45 1390 Esperanza 1815 In-fill
    10850 2,632.9 12,217.7 10,801.00 7 -39.3 1510 Esperanza 1815 In-fill
    10853 2,633.4 12,217.0 10,801.00 11.5 -49.5 1250 Esperanza 1815 In-fill
    10837 11,348.5 9,950.5 9,845.70 341.5 64 583 Palmar Dyke 2790 Step-out
    10839 11,048.4 9,975.1 9,843.70 340 58.8 763 Palmar Dyke 2790 Step-out
    10841 11,350.0 9,945.0 9,844.00 341 52.7 590 Palmar Dyke 2790 Step-out
    10842 11,048.4 9,975.1 9,843.70 337.1 51.2 775 Palmar Dyke 2790 Step-out
    10844 11,051.0 9,975.1 9,848.70 23 65.2 710 Palmar Dyke 2790 Step-out
    10845 11,348.6 9,950.5 9,847.70 342.5 69.5 578 Palmar Dyke 2790 Step-out
    10846 11,052.7 9,974.7 9,849.70 30 72 703 Palmar Dyke 2790 Step-out
    10848 11,052.7 9,974.7 9,847.70 31 60 749 Palmar Dyke 2790 Step-out
    10851 11,350.0 9,950.8 9,845.70 30 60 536 Palmar Dyke 2790 Step-out
    10852 11,052.7 9,974.7 9,850.70 31 79.5 715 Palmar Dyke 2790 Step-out
    10854 11,054.2 9,974.4 9,848.70 46 67 717 Palmar Dyke 2790 Step-out
    10855 11,350.0 9,950.8 9,846.70 3.8 69 545 Palmar Dyke 2790 In-fill
    10856 11,050.0 9,973.3 9,851.90 355 80 723 Palmar Dyke 2790 Step-out
    10857 11,048.0 9,975.0 9,849.70 329.5 74.2 765 Palmar Dyke 2790 Step-out
    10828 8,062.4 12,123.3 9,876.00 19.5 -67.3 1260 Santa Elena 2680 In-fill
    10833 8,061.7 12,121.5 9,876.60 18.5 -63.5 1349 Santa Elena 2680 In-fill
    10838 8,061.3 12,120.5 9,876.60 17.5 -74.1 1200 Santa Elena 2680 In-fill
    10823 11,347.8 9,948.8 9,831.70 327.6 -23 438 Victoria 2790 In-fill
    10824 11,349.6 9,946.6 9,831.70 342.6 -5.6 400 Victoria 2790 Step-out
    10827 11,348.6 9,950.2 9,831.70 341.5 -41.5 365 Victoria 2790 Step-out
    10836 11,348.5 9,946.2 9,831.70 310 -51.2 330 Victoria 2790 Step-out
    10849 11,348.6 9,950.5 9,836.70 343.2 21.5 522 Victoria 2790 Step-out
    Table 1: Significant Assays
                           
    Diamond
    Drill Hole
      Category 
      No. DDH 

    From
      (m) 
      To (m) 

      Interval 
    (m)
    True/
      Apparent 
    width* (m)
      ZnEq %** 

      Zn % 

      Pb % 

    Ag
      g/t 
     Cu %

      Area 

    Infill 10860 22.9 23.9 1.1 1.0 7.1 1.0 1.8 279 0.67 Palmar Dyke
      and 182.6 186.6 4.0 3.6 9.3 3.7 3.4 170 0.11 Palmar Dyke
      and 206.0 207.6 1.5 1.4 19.9 7.3 9.5 287 0.04 Palmar Dyke
    Step out 10865 18.9 21.8 2.9 2.6 8.7 1.9 2.9 266 0.36 Palmar Dyke
      and 156.4 158.5 2.1 1.9 22.7 12.8 8.6 174 0.03 Palmar Dyke
    Infill 10867 174.0 182.6 8.5 7.7 10.0 6.5 2.9 69 0.14 Palmar Dyke
      including 174.0 178.3 4.3 3.8 8.5 5.7 2.3 53 0.12 Palmar Dyke
      including 178.3 182.6 4.3 3.8 11.5 7.3 3.4 85 0.17 Palmar Dyke
    Infill 10869 18.3 20.3 1.9 1.7 5.9 2.0 2.2 121 0.33 Palmar Dyke
    Infill 10871 194.8 199.6 4.9 4.4 6.0 3.8 1.6 55 0.15 Palmar Dyke
      including 194.8 196.6 1.8 1.6 10.2 7.0 2.4 74 0.22 Palmar Dyke
      including 196.6 199.6 3.0 2.7 3.5 1.8 1.2 43 0.10 Palmar Dyke
    Infill 10873 190.2 195.1 4.9 4.4 18.2 9.5 6.7 190 0.09 Palmar Dyke
      including 190.2 192.0 1.8 1.6 8.7 5.3 2.0 102.0 0.1 Palmar Dyke
      including 192.0 195.1 3.0 2.7 23.9 12.1 9.5 244 0.07 Palmar Dyke
    Step out 10874 No Significant intercepts Palmar Dyke
    Infill 10875 128.9 130.4 1.5 1.3 23.3 0.8 2.7 1221 0.74 Palmar Dyke
      and 169.2 175.3 6.1 5.5 45.5 5.2 2.7 2297 0.98 Palmar Dyke
      including 169.2 170.7 1.5 1.4 159.7 16.1 7.9 8263 3.36 Palmar Dyke
      including 170.7 174.0 3.4 3.0 7.2 1.6 1.0 286 0.14 Palmar Dyke
      including 174.0 175.3 1.2 1.1 8.2 1.3 1.0 368 0.29 Palmar Dyke
      and 199.2 200.6 1.4 1.3 7.7 2.4 2.5 199 0.08 Palmar Dyke
    Infill 10876 45.0 46.0 1.1 1.0 6.9 0.3 0.3 388 0.28 Palmar Dyke
      and 148.1 150.0 1.8 1.6 7.8 1.0 0.9 361 0.06 Palmar Dyke
    Infill 10877 181.4 182.9 1.5 1.4 4.1 1.3 1.0 121 0.07 Palmar Dyke
    Step out 10878 11.0 12.2 1.2 1.1 8.7 2.7 2.3 253 0.34 Palmar Dyke
    Infill 10879 152.4 161.8 9.4 4.6 8.5 3.7 2.4 171 0.18 Palmar Dyke
      including 152.4 153.8 1.4 1.2 6.3 0.6 0.6 314 0.09 Palmar Dyke
      including 155.4 157.7 2.3 2.1 4.1 1.7 1.6 71 0.11 Palmar Dyke
      including 160.4 161.8 1.4 1.3 17.8 10.1 5.6 193 0.37 Palmar Dyke
    Step out 10880 8.7 14.3 5.6 5.1 7.6 3.1 2.5 149 0.55 Palmar Dyke
      and 25.6 26.5 0.9 0.8 53.3 14.4 7.8 1958 1.28 Palmar Dyke
      and 160.9 163.7 2.7 2.5 8.5 5.6 2.5 50 0.06 Palmar Dyke
    Infill 10881 19.2 20.7 1.5 1.4 19.7 7.8 8.1 315 0.52 Palmar Dyke
      and 140.4 141.2 0.9 0.8 12.6 0.6 0.5 700 0.20 Palmar Dyke
      and 148.1 150.3 2.1 1.9 5.0 0.4 0.5 255 0.05 Palmar Dyke
      and 159.4 160.8 1.4 1.3 20.5 8.5 8.9 284 0.02 Palmar Dyke
    Step out 10882 155.4 158.5 3.0 2.7 6.7 5.5 0.7 39 0.10 Palmar Dyke
    Step out 10884 119.9 123.1 3.2 2.9 9.4 1.7 2.4 341 0.10 Palmar Dyke
      and 132.7 134.7 2.0 1.8 7.8 4.8 2.2 73 0.04 Palmar Dyke
      and 158.5 163.1 4.6 4.1 11.1 10.1 0.6 31 0.12 Palmar Dyke
    Step out 10858 25.6 28.0 2.4 2.1 5.8 3.1 2.5 37 0.37 Victoria
    Step out 10859 43.7 46.5 2.7 2.3 8.1 4.3 3.4 56 0.62 Victoria
    Step out 10861 33.5 35.1 1.6 1.3 8.1 4.7 3.6 30 0.04 Victoria
    Step out 10862 29.1 30.8 1.7 1.4 5.9 3.1 2.8 33 0.10 Victoria
    Step out 10863 23.6 25.0 1.4 1.2 4.2 2.1 2.2 19 0.01 Victoria
    Step out 10864 26.3 26.9 0.6 0.5 7.3 3.7 3.6 39 0.17 Victoria
    Step out 10866 151.8 156.7 4.9 2.9 7.4 6.3 0.9 19 0.01 Victoria
      including 151.8 153.6 1.8 1.1 3.8 2.8 0.8 18 0.02 Victoria
      including 153.6 156.7 3.0 1.8 9.5 8.4 1.0 19 0.01 Victoria
      and 166.4 167.6 1.2 0.7 11.1 10.7 0.2 18 0.23 Victoria
    Step out 10868 94.4 95.7 1.3 0.8 6.4 4.0 2.3 34 0.47 Victoria
      and 116.4 119.5 3.0 1.8 5.5 4.5 1.0 12 0.06 Victoria
      and 141.7 143.3 1.5 0.9 13.5 12.9 0.3 24 0.13 Victoria
    Step out 10870 115.1 121.9 6.9 4.1 12.0 10.0 1.9 23 0.17 Victoria
      including 115.1 118.0 2.9 1.7 10.2 6.2 4.3 32 0.01 Victoria
      including 118.0 119.7 1.7 1.0 1.1 0.9 0.2 3 0.01 Victoria
      including 119.7 121.9 2.3 1.4 22.6 21.9 0.3 26 0.50 Victoria
      and 144.2 145.7 1.5 0.9 7.8 7.3 0.3 18 0.02 Victoria
      and 146.6 147.7 1.1 0.6 12.5 9.0 2.5 87 0.64 Victoria
    Step out 10872 84.4 86.1 1.7 1.0 14.0 7.9 6.0 75 0.20 Victoria
      and 90.2 91.6 1.4 0.8 5.8 3.8 1.9 26 0.27 Victoria
    Step out 10896 102.5 105.1 2.6 1.6 6.1 3.5 2.6 28 0.09 Victoria
    Step out 10905 56.4 59.1 2.7 1.6 9.7 5.7 4.0 43 0.02 Victoria
    Infill 10883 304.5 311.2 6.7 6.7 9.2 5.6 3.5 39 0.03 Santa Elena
      including 304.5 307.2 2.7 2.7 3.2 2.2 0.8 21 0.00 Santa Elena
      including 307.2 311.2 4.0 4.0 13.3 8.0 5.4 52 0.05 Santa Elena
    Infill 10887 305.8 334.1 28.3 23.4 7.7 6.5 1.0 24 0.04 Santa Elena
      including 305.8 311.5 5.7 3.5 14.4 8.3 5.3 103 0.09 Santa Elena
      including 311.5 315.5 4.0 3.6 11.2 9.6 1.6 22 0.04 Santa Elena
      including 315.5 319.1 3.7 3.3 9.0 8.7 0.1 11 0.03 Santa Elena
      including 319.1 323.1 4.0 3.6 3.1 2.9 0.1 8 0.02 Santa Elena
      including 323.1 326.7 3.7 3.3 6.1 5.7 0.2 11 0.05 Santa Elena
      including 326.7 334.1 7.3 6.6 5.0 4.9 0.0 7 0.02 Santa Elena
    Infill 10886 24.4 32.6 8.2 7.0 5.8 4.8 0.5 40 0.07 Esperanza
      including 24.4 27.3 2.9 2.5 4.4 3.2 0.7 33 0.08 Esperanza
      including 27.3 32.6 5.3 4.5 6.6 5.6 0.3 43 0.07 Esperanza
    Infill 10888 15.0 18.3 3.3 2.8 4.5 2.6 1.8 26 0.00 Esperanza
    Infill 10889 No Significant intercepts Esperanza
    Infill 10890 23.2 25.0 1.8 1.1 6.2 3.3 2.6 40 0.0 Esperanza
      and 29.6 36.3 6.7 4.0 11.6 6.4 4.9 75 0.06 Esperanza
      including 29.6 32.6 3.0 1.8 14.4 8.0 5.9 93 0.06 Esperanza
      including 32.6 33.5 0.9 0.5 4.8 2.5 2.1 34 0.04 Esperanza
      including 33.5 35.1 1.5 0.9 16.1 8.8 6.9 100 0.08 Esperanza
      including 35.1 36.3 1.2 0.7 4.4 2.2 2.1 31 0.05 Esperanza
    Infill 10891 16.9 19.8 3.0 2.5 5.0 2.8 2.1 29 0.00 Esperanza
      and 21.6 25.9 4.3 3.6 4.5 3.2 0.4 58 0.05 Esperanza
    Infill 10893 No Significant intercepts Esperanza
    Infill 10894 No Significant intercepts Esperanza
    Infill 10895 No Significant intercepts Esperanza
    Infill 10897 No Significant intercepts Esperanza
    Infill 10898 40.8 45.1 4.3 2.6 8.4 5.3 2.9 45 0.02 Esperanza
      including 40.8 43.0 2.1 1.3 11.8 8.2 3.2 60 0.04 Esperanza
      including 43.0 45.1 2.1 1.3 5.0 2.4 2.6 30 0.00 Esperanza
    Infill 10899 No Significant intercepts Esperanza
    Infill 10901 21.3 27.3 5.9 3.6 8.9 5.9 1.9 87 0.42 Esperanza
      including 21.3 22.3 0.9 0.5 4.0 1.9 2.2 24 0.00 Esperanza
      including 22.3 24.4 2.1 1.3 8.7 5.4 3.2 46 0.01 Esperanza
      including 24.4 25.9 1.5 0.9 14.62 10.8 0.6 204 1.26 Esperanza
      including 25.9 27.3 1.4 0.8 6.06 4.2 1.0 61 0.41 Esperanza
      and 35.1 45.4 10.4 6.2 8.58 7.9 0.1 36 0.09 Esperanza
      including 35.1 38.1 3.0 1.8 9.28 8.9 0.1 19 0.07 Esperanza
      including 38.1 41.8 3.7 2.2 7.91 7.4 0.1 28 0.07 Esperanza
      including 41.8 45.4 3.7 2.2 8.65 7.6 0.2 57 0.12 Esperanza
    Infill 10903 No Significant intercepts Esperanza
    Infill 10904 70.6 90.8 20.3 12.2 12.6 6.6 5.6 81 0.1 Esperanza
      including 70.6 72.2 1.7 1.0 12.6 6.6 5.6 89 0.0 Esperanza
      including 72.2 73.2 0.9 0.5 17.3 8.6 8.7 92 0.0 Esperanza
      including 73.2 74.7 1.5 0.9 21.8 12.1 9.2 129 0.1 Esperanza
      including 74.7 76.2 1.5 0.9 6.8 4.3 2.4 35 0.1 Esperanza
      including 76.2 77.7 1.5 0.9 21.4 12.0 9.0 119 0.2 Esperanza
      including 77.7 79.7 2.0 1.2 31.5 16.1 12.6 307 0.8 Esperanza
      including 79.7 81.4 1.7 1.0 7.2 4.1 3.2 30 0.0 Esperanza
      including 81.4 83.2 1.8 1.1 5.8 3.2 2.7 26 0.0 Esperanza
      including 83.2 85.0 1.8 1.1 7.9 3.9 4.0 43 0.0 Esperanza
      including 85.0 86.9 1.8 1.1 8.3 4.2 4.2 40 0.0 Esperanza
      including 86.9 88.7 1.8 1.1 9.0 4.6 4.6 41 0.0 Esperanza
      including 88.7 89.9 1.2 0.7 2.5 1.4 1.2 9 0.0 Esperanza
      including 89.9 90.8 0.9 0.5 7.7 3.8 4.0 39 0.0 Esperanza
    Infill 10906 62.2 85.6 23.5 14.1 6.8 4.1 2.1 62 0.0 Esperanza
      including 62.2 71.6 9.4 5.7 3.1 1.1 0.7 90 0.0 Esperanza
      including 71.6 73.2 1.5 0.9 11.5 6.4 4.8 71 0.0 Esperanza
      including 73.2 74.7 1.5 0.9 12.0 5.8 5.8 90 0.1 Esperanza
      including 74.7 76.2 1.5 0.9 20.8 17.9 2.8 36 0.0 Esperanza
      including 76.2 77.7 1.5 0.9 7.1 5.6 1.4 20 0.0 Esperanza
      including 77.7 79.6 1.8 1.1 7.2 6.1 1.0 15 0.0 Esperanza
      including 79.6 80.8 1.2 0.7 2.6 0.7 1.9 23 0.0 Esperanza
      including 80.8 82.3 1.5 0.9 4.2 2.0 1.9 42 0.1 Esperanza
      including 82.3 85.6 3.4 2.0 8.7 4.7 3.9 44 0.0 Esperanza
      including 88.4 89.6 1.2 0.7 2.9 1.9 0.9 13 0.0 Esperanza
    Infill 10907 81.1 88.0 6.9 4.1 7.7 4.2 2.4 92 0.1 Esperanza
      including 81.1 82.3 1.2 0.7 4.5 1.5 0.4 165 0.6 Esperanza
      including 82.3 84.1 1.8 1.1 4.5 3.2 0.4 61 0.0 Esperanza
      including 84.1 86.0 1.8 1.1 13.5 7.8 4.6 117 0.1 Esperanza
      including 86.0 88.0 2.0 1.2 7.2 3.6 3.3 53 0.0 Esperanza
    Infill 10910 74.3 85.2 10.9 6.5 9.0 4.3 4.7 54 0.0 Esperanza
      including 74.3 75.4 1.1 0.7 6.8 3.6 3.2 39 0.0 Esperanza
      including 75.4 76.2 0.8 0.5 9.9 5.1 4.8 53 0.0 Esperanza
      including 76.2 78.3 2.1 1.3 12.6 5.9 6.7 71 0.0 Esperanza
      including 78.3 79.9 1.5 0.9 12.3 5.8 6.5 74 0.0 Esperanza
      including 79.9 81.1 1.2 0.7 8.4 3.7 4.7 52 0.0 Esperanza
      including 81.1 82.6 1.5 0.9 4.5 2.1 2.2 32 0.0 Esperanza
      including 82.6 83.8 1.2 0.7 7.5 3.6 3.9 45 0.0 Esperanza
      including 83.8 85.2 1.4 0.8 8.1 4.0 4.0 49 0.0 Esperanza
    Infill 10911 74.1 87.0 13.0 7.8 6.7 3.5 3.0 43 0.0 Esperanza
      including 74.1 75.9 1.8 1.1 5.5 2.9 2.2 47 0.1 Esperanza
      including 75.9 77.4 1.5 0.9 5.5 2.8 2.7 33 0.0 Esperanza
      including 77.4 79.2 1.8 1.1 9.0 5.3 3.6 43 0.0 Esperanza
      including 79.2 80.8 1.5 0.9 6.6 3.7 2.8 38 0.0 Esperanza
      including 80.8 82.3 1.5 0.9 4.8 2.5 2.3 28 0.0 Esperanza
      including 82.3 83.8 1.5 0.9 6.2 3.0 3.2 37 0.0 Esperanza
      including 83.8 85.3 1.5 0.9 3.2 0.9 2.3 23 0.0 Esperanza
      including 85.3 87.0 1.7 1.0 11.9 6.4 4.9 91 0.0 Esperanza
    Infill 10914 27.1 30.8 3.7 2.2 6.7 4.0 2.6 39 0.0 Esperanza
      and 34.1 36.6 2.4 1.5 6.7 2.9 0.7 196 0.9 Esperanza
      and 44.2 46.9 2.7 1.6 7.3 7.1 0.0 10 0.0 Esperanza
    * True Thickness is not known at this time in Palmar Dyke and Victoria 
    ** ZnEq. Represents zinc grade together with the lead and silver grades (zinc equivalent) in terms of zinc using certain metal price, payable metal, and processing recoveries assumptions: 
    ** ZnEq. Assumptions:  Prices - Zn$1.13/lb, Pb$1.00/lb, Ag$18.00/oz; Payable metal - Zn 85%, Pb 95%, Ag 69%, Processing recoveries - Zn 89%, Pb 74%, Ag 79%. Copper grades are currently excluded from ZnEq. 
    Table 2: Drill Hole Information  
       
                                                            Coordinates (UTM)  
    Category
    No. DDH
    Easting (m) 
    Northing (m) 
    Elevation above
    datum (m) 
    Azimutm  Inclination
    Depth (m)
      Area/Ore body
      Level
    Underground (feet) 
     
    Infill 10860   384,283.3  1,642,151.9 112.7 330.5 51.0 241 Palmar Dyke 2790  
    Step out 10865 384,284.0 1,642,152.1 112.7 2 56 201 Palmar Dyke 2790  
    Infill 10867 384,284.5 1,642,151.9 108.4 23 62 201 Palmar Dyke 2790  
    Infill 10869 384,284.5 1,642,151.9 112.3 23 51 215 Palmar Dyke 2790  
    Infill 10871 384,284.1 1,642,150.8 114.9 22 83 213 Palmar Dyke 2790  
    Infill 10873 384,283.3 1,642,151.9 113.3 331 69 213 Palmar Dyke 2790  
    Step out 10874 384,377.9 1,642,145.1 113.1 40 64 169 Palmar Dyke 2790  
    Infill 10875 384,285.0 1,642,151.2 114.7 61 76 232 Palmar Dyke 2790  
    Infill 10876 384,376.3 1,642,144.1 114.1 347 75 187 Palmar Dyke 2790  
    Infill 10877 384,284.0 1,642,150.6 114.9 50 85 253 Palmar Dyke 2790  
    Step out 10878 384,376.4 1,642,143.8 114.1 360 80 197 Palmar Dyke 2790  
    Infill 10879 384,284.0 1,642,150.5 114.9 340 81 221 Palmar Dyke 2790  
    Step out 10880 384,376.4 1,642,143.6 114.1 30 70 176 Palmar Dyke 2790  
    Infill 10881 384,284.0 1,642,152.1 113.0 0 60 235 Palmar Dyke 2790  
    Step out 10882 384,376.4 1,642,145.6 112.8 358 52 183 Palmar Dyke 2790  
    Step out 10884 384,375.6 1,642,145.9 113.1 15 62 175 Palmar Dyke 2790  
    Step out 10858 384,376.4 1,642,144.0 108.8 358.0 -49.8 94 Victoria 2790  
    Step out 10859 384,376.4 1,642,144.0 109.7 0.2 -22.0 91 Victoria 2790  
    Step out 10861 384,377.2 1,642,144.6 108.8 32 -65 73 Victoria 2790  
    Step out 10862 384,377.3 1,642,144.9 108.8 30 -36 82 Victoria 2790  
    Step out 10863 384,377.6 1,642,144.4 108.8 43 -54 73 Victoria 2790  
    Step out 10864 384,378.3 1,642,144.9 109.7 47 -22 61 Victoria 2790  
    Step out 10866 384,376.8 1,642,142.1 108.8 164 -55 192 Victoria 2790  
    Step out 10868 384,376.7 1,642,142.8 108.8 166 -70 166 Victoria 2790  
    Step out 10870 384,375.9 1,642,141.4 108.8 193 -61 175 Victoria 2790  
    Step out 10872 384,376.1 1,642,142.0 108.8 190 -74 115 Victoria 2790  
    Step out 10896 384,284.0 1,642,148.3 108.4 148 -77.2 128 Victoria 2790  
    Step out 10905 384,284.8 1,642,146.6 108.4 159 -45.8 188 Victoria 2790  
    Infill 10883 383,372.8 1,642,806.6 123.2 10 -85 341 Santa Elena 2680  
    Infill 10887 383,372.9 1,642,807.0 123.2 15 -79 351 Santa Elena 2680  
    Infill 10886 381,744.6 1,642,922.4 176.6 275 -1 59 Esperanza 2550  
    Infill 10888 381,744.6 1,642,922.3 175.3 276 -26 32 Esperanza 2550  
    Infill 10889 381,745.5 1,642,922.3 175.0 276 -70 18 Esperanza 2550  
    Infill 10890 381,745.1 1,642,923.7 176.6 305 0.0 47 Esperanza 2550  
    Infill 10891 381,745.1 1,642,923.7 175.4 305 -25.0 45 Esperanza 2550  
    Infill 10893 381,745.6 1,642,923.3 175.1 300 -50 36 Esperanza 2550  
    Infill 10894 381,744.6 1,642,922.3 176.8 277 8 61 Esperanza 2550  
    Infill 10895 381,745.1 1,642,923.6 177.2 310 20 67 Esperanza 2550  
    Infill 10897 381,745.1 1,642,923.6 176.9 305 10 70 Esperanza 2550  
    Infill 10898 381,745.9 1,642,924.3 176.6 331 -1.0 73 Esperanza 2550  
    Infill 10899 381,745.9 1,642,924.3 176.9 330 20 76 Esperanza 2550  
    Infill 10901 381,746.3 1,642,923.7 175.1 331 -21 59 Esperanza 2550  
    Infill 10903 381,744.2 1,642,921.3 176.6 254 0 34 Esperanza 2550  
    Infill 10904 381,746.5 1,642,924.7 176.6 350 0 101 Esperanza 2550  
    Infill 10906 381,746.7 1,642,924.8 176.9 347 14.8 98 Esperanza 2550  
    Infill 10907 381,746.5 1,642,924.7 177.2 347 26 98 Esperanza 2550  
    Infill 10910 381,746.7 1,642,924.8 177.5 346.5 35.3 101 Esperanza 2550  
    Infill 10911 381,746.7 1,642,924.8 177.8 346.2 44.4 110 Esperanza 2550  
    Infill 10914 381,746.7 1,642,924.8 175.7 349 -25 82 Esperanza 2550