Pulacayo Project Feasibility Study - Apogee Silver

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Pulacayo 1 000 t/d Phase I Feasibility Study - NI 43-101 Technical Report 090644-3-0000-20-IFI-100 interpreted to be the result of sinistral movement along the two north-south oriented bounding faults mentioned earlier (Figure 7.4). 7.4 Alteration Wallrock alteration is spatially associated with the main vein system trends at Pulacayo and includes propylitic, sericitic, moderate-advanced argillic, and siliceous assemblages. Host rock composition exerts a strong local influence on both the nature of alteration assemblages present and their relative intensity of development. On this basis, spatial distribution of hydrothermal alteration assemblages in the district is a useful indicator of proximity to mineralized structures. Moderate argillic alteration is observed throughout the Pulacayo area and transitions to intense argillic alteration in close proximity to veins and disseminated-stock work zones. Haloes of silicification are developed around vein contacts and measure up to several cm in width in some cases. Silicification grades into advanced argillic alteration as distance into the wall rock increases from the vein contact and this gradually grades to argillic and propylitic zones with greater distance from the contact. 7.5 Mineralization As referenced by Pressacco et al. (2010) the Pulacayo deposit is considered an example of a sub-volcanic epithermal mineralization system showing well developed vertical metal zonation. The main mineralized vein and stock work system developed on the southern flank of a dacitic intrusive dome and shows a surface strike dimension of 2 700 m. At Pulacayo, east-west striking faults are interpreted to have acted as a conduit system for mineralizing fluids, with sulphide precipitation in open spaces to form veins and along fractures or by replacement to form zones of disseminated mineralization. Changes in temperature, pressure and redox state between the wall rock and fluid are thought to have influenced the style and intensity of mineralization. As such, Ag-Pb-Zn lead mineralization at Pulacayo is typical of a high level epithermal system that in this case is hosted by sedimentary and intrusive rocks of Silurian and Neocene age. The principal mineralized structure at Pulacayo is the TVS, which has historically been the main Ag producer of the mine. The TVS is a large structural stock work system that trends east-west and dips 75° to 90° to the south (Figure 7.4). The high grade parts of TVS were historically mined as single veins over widths of 1 m to 3 m but transitions from this setting into zones of complex quartz-sulphide or sulphide vein arrays that include conjugate veins, veinlets, stock works and disseminated sulphides that occur over widths ranging from less than a meter up to 120 m. Mineralization of economic interest at Pulacayo is predominantly comprised of sphalerite, galena and tetrahedrite in sulphide-rich veins that are accompanied by locally abundant quartz, barite and pyrite. These veins range from a few centimeters to greater than 1 m in thickness and disseminated sphalerite, galena and tetrahedrite typically occur in wallrock between the veins. Disseminated mineralization is preferentially developed around and between veins hosted by andesite. To date, the TVS system has been continuously proven by mining and/or surface exposure along a strike length of 2,700 m and to a vertical depth of 1,000 m below surface and was open in both strike and dip components at the effective date of this report. The first 450 vertical meters of the TVS is hosted by andesitic volcanic rocks TWP Sudamérica S.A. Av. Encalada 1257 Of. 801, Santiago de Surco Lima 33, Perú (51-1) 4377473 Page 39
Pulacayo 1 000 t/d Phase I Feasibility Study - NI 43-101 Technical Report 090644-3-0000-20-IFI-100 and the remaining 550 vertical meters is hosted by underlying Silurian sedimentary strata (Figure 7.5). Figure 7.5: Section PY-740200 Veins at Pulacayo commonly contain semi-massive to massive sulphide and show internal features such as compositional banding, crustiform texture and drusy character (Figure 7.6). TWP Sudamérica S.A. Av. Encalada 1257 Of. 801, Santiago de Surco Lima 33, Perú (51-1) 4377473 Page 40
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Pulacayo Project Feasibility Study - Apogee Silver

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