Pulacayo Project Feasibility Study - Apogee Silver

Pulacayo 1 000 t/d Phase I Feasibility Study - NI 43-101 Technical Report
090644-3-0000-20-IFI-100
14 MINERAL RESOURCE ESTIMATE
14.1 General
The definition of mineral resource and associated mineral resource categories used in this
report are those recognized under National Instrument 43-101 and set out in the Canadian
Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Reserves
Definitions and Guidelines (the CIM Standards). Assumptions, metal threshold parameters
and deposit modeling methodologies associated with the current Pulacayo resource estimate
are discussed.
14.2 Geological Interpretation Used In Resource Estimation
The Pulacayo deposit is considered a low sulphidation epithermal deposit hosting both
precious and base metals, of which silver, lead and zinc are of economic significance.
Mineralization included in the current resource is associated with the TVS that were
emplaced on the southern side of the Pulacayo dome complex that contains Tertiary
sediments of the Quenhua Formation and Miocene intrusive andesitic volcanic rocks of the
Rothchild and Megacristal units. The dome complex is tens of km in length and commonly
hosts polymetallic sulphide mineralization within east-west trending fault systems. The TVS is
the most prominent mineralized structure on the property and portions of the trend have been
mined for several hundred years. The structure strikes east-west and has near vertical dip in
most areas.
TVS mineralization is hosted by both volcanic and sedimentary host rocks, with stock works
of narrow veins and veinlets plus disseminations that aggregate up to 120 m in width being
typical of volcanic hosted sections. Sections hosted by sedimentary rocks show much
narrower high grade vein structures that typically measure a few meters or less in width.
These generally bifurcate transitionally upward into the stock work style systems and zones
of dissemination seen in the overlying volcanic rocks.
Mineralization is known to extend along the TVS strike for 2,700 m and to a depth of almost
1,000 m below surface. The latter reflects the depth of historic mining, of which approximately
450 m occur within overlying volcanic host rocks and 550 m occur within the sedimentary
sequence. The portion of the TVS defined by Apogee drilling and considered in this resource
estimate extends along strike for approximately 1,500 m and to an average depth of 450 m
below surface. As a result, most of the resource area is hosted by andesitic volcanic
lithologies.
Contributing minerals of economic significance include galena, sphalerite, tetrahedrite and
other silver sulfosalts, along with minor occurrences of chalcopyrite and jamesonite. These
minerals are accompanied by barite, quartz, pyrite, and calcite. Local occurrences of Au have
also been noted but not extensively assessed to date. Veins generally have a banded
texture, with segments containing semi-massive to massive sulphides. The TVS shows
vertical metal zonation with increasing base metal concentrations with depth and higher Ag
content at middle elevations (350 m to 450 m depth).
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