@bobasteveTo put into context how Ternera East may develop in...

@bobasteve

To put into context how Ternera East may develop in correlation to the overall geological model, refer to the below section with an extract from the Leap Frog Model.

The 'Pink Mass' you see below is the conceptual ore body which is a combination of the El Zorro Tonalite, Dirorite & Sedimentary Rocks. It's all mineralized, with the high grade mineralization zones concentrated within the North-South Faults & lower grade halos in-between the faults and where the N-S faults passed through the sediments.

Mineralisation associated with the orebody is rather complex because of the various grade domains and structures. Mineralisation isn't homogeneous in some zones which made the resource estimation extremely complex at MRE stage due to limited number of drills, which resulted in large portions of the mineralized zones being excluded from the resource due to requirements for additional data density drilling. A majority of the mineralized orebody was not included in the MRE as evident in the sections provided, which shows the MRE outline. Post MRE most our drilling has hit really recent grade and width and it's evident in Section -100m provided below that shows that we are filling out the ore body within the pit nicely.

So when the company says "Ternera continues to grow with more drilling" it simply means that with more drills in the orebody, the Pink Mass you see in the 3D model below, the more of it is getting converted into Mineralization. Once almost fully filled out, it'd develop into a large bulk tonnage open pit deposit with average grades of around 1.1-1.2g/t and a very low strip ratio. So based on where the resource was at the time of the MRE release, how post MRE drilling has evolved and the scope for further increase in resource within the pitt shell, there is a clear path for Ternera to transform into a deposit that can produce circa 100koz x 10yrs recovered gold.

Ternera East sits in the hanging wall zone of the deposit. Somewhere around the outer pit shell. Once this zone is defined in the future, it'll convert that portion of the deposit into a lower grade mineable resource which would otherwise be mined and sent to the waste dump. This has potential to contribute to the front end feed early in the production schedule.






If Toro Blanco is as prospective as Ternera, that would be a massive step change as the conceptual mapping of the Host Rock is Mutiples the size of Ternera, so conceptually it could Double-Tripple the scale & subsequent production output of the Ternera Target. We will find out how prospective TB is once the assays come in.