Mineral Processing and Metallurgical Test Work

Metallurgical test work performed by McClelland Laboratorios de México in 1998 explored the amenability of the mineralization to heap leaching processes. The test work indicated gold and silver recoveries of 76% and 24% respectively and also showed that gold recoveries could be improved by grinding and leaching the material in a conventional cyanidation process.

In 2012, test work performed by Resource Development Inc. (RDi) of Lakewood, Colorado focused on gold extraction under a conventional mill circuit and yielded design recoveries of 93% gold and 83% silver.

Leach Testing

The Company is performing additional testwork and reviewing engineering options for a heap-leach scenario similar to the proposed Santana operation.