Tepal project

Commodity:
Gold-Copper
Location:
Michoacán, Mexico
Nearest City:
170 km south of Guadalajara, near the Jalisco State
Infrastructure:
Excellent with paved roads and low topography
Utilities:
Water, power, deep sea port access
Labour:
Experienced technical Mexican geologists and local labour
Communities:
Town of Tepalcatepec, 15.5 km from the Tepal project
Size:
1,440 ha
Stage:
43-101 M&I Resource, PEA & PFS (MIA Permitted)
Ownership:
100%

The Tepal project is a 100% owned advanced stage exploration project with a current 4 Moz Gold equivalent Measured and Indicated resource (2013 PFS, 2017 PEA). The project is located in the state of Michoacán, Mexico, a short distance from the Jalisco State border, lying roughly equidistant between the two international commercial sea ports of Manzanillo, Colima and Lazaro Cardenas, Michoacán, and the international Airports of Manzanillo and Guadalajara, a city of 5 Million people.

The Tepal project is situated in moderately hilly to mountainous terrain within the forests of the Tepalcatepec river basin; a 15 minute drive via paved highways and well maintained ranch roads from the commercial centre of Tepalcatepec (municipality population 45,000).The region has a history of established international scale agribusiness and has a long history of local independent mining operations, both indicative of a supportive community and social relationship. The region offers an excellent infrastructure and a work pool of highly trained technical talent and local labour.

Historically, the Tepal project was intermittently explored for its gold-copper mineralization by various senior and junior mining companies since the early 1970’s. Tepal was acquired in 2009 having a historical non NI 43-101 Indicated Mineral Resource of 25 Mt grading 0.54 g/t gold and 0.27% copper with an Inferred Mineral Resource of 55 Mt grading 0.41 g/t gold and 0.22% copper, constrained by a 0.18 ppm Au envelope that resulted from about 19,820 meters of core and RC drilling. The initial historic resource envisioned an open pit scenario in two zones, the North and South Zones.