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
25 INTERPRATION AND CONCLUSIONS
25.1 Project Feasibility
Much progress has been made in the development of the Pulacayo Project since the
publishing of the Preliminary Assessment of the Pulacayo Project in 25 June 2010.
Additional drilling has allowed for a significant increase of mineral reserves. Mineral reserves
have now been established at 19.5 million ounces of silver in concentrate in the Pulacayo
deposit. During the course of the Feasibility Study, a detailed analysis of numerous mine
plan options was performed by TWP and the most cost effective plan was selected as the
mine/waste production schedule for this study.
Extensive metallurgical test work highlighted the complexity of the Project deposit
mineralization and resulted in reorienting the flotation step in the process flow sheet from
bulk flotation process to conventional differential flotation process.
Furthermore, all environmental aspects and impacts were studied in detail and allowed for
the development of a solid environmental management plan for tailings and waste disposal.
The operations were engineered to process ore at a full design rate of 1,000 tons per day
through two modular circuits of 500 tons per day. Although, operations were fully permitted
to process ore at a rate of 300 tons per day, Apogee Silver is in the process of getting the
environmental permit to process ore at full design capacity (EIA extension).
The increase in the level of engineering developed during the course of the Feasibility Study
allowed for significant de-risking. Thereafter, the capital cost and operating cost estimates
associated with the Project have been developed to a significantly improved degree of
accuracy.
The Feasibility Study demonstrates that the project is technically feasible and has a robust
economic investment case.
25.1.1 Geology
The Pulacayo deposit is located on the western flank of the Cordillera Oriental, near the
Cordillera-Altiplano boundary. The area is underlain by folded sedimentary and igneous
rocks of Silurian, Tertiary and Quaternary ages that locally host low sulphidation epithermal
polymetallic vein and stock work styles of mineralization.
Polymetallic (Ag-Pb-Zn) vein and disseminated wall rock mineralization at Pulacayo are
controlled by east west trending secondary faults. The main mineralized trend was emplaced
on the southern side of the Pulacayo dome complex and is best exemplified by the Tajo Vein
System (TVS) that is the subject of this Feasibility Study.
The TVS trends east-west, dips 75° to 90° to the south along 2,700 m of defined surface
strike length, and is present in mine workings at a depth of 1,000 m below surface. In the
upper levels of the deposit, where volcanic strata host mineralization, the TVS consists of a
stock work vein system that locally reaches 120 m in mineralized width.
TWP Sudamérica S.A. Av. Encalada 1257 Of. 801, Santiago de Surco Lima 33, Perú (51-1) 4377473
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