This is interesting reading, page 45.In November 2008 once...

This is interesting reading, page 45.

In November 2008 once Admiralty Resources NL became the majority shareholder in
Minera Santa Barbara, a decision was made to suspend the mining and mineral
processing operations at the Japonesa Ore Body. This decision was based on three
considerations:
· Mining was initiated on inferred and indicated ore resources and not on proven
ore reserves. This made accurate mine planning and mine production scheduling
impossible to achieve resulting in a variable quality of feed to the mineral
processing plant.
· Continued mining operations executed on ore resources could adversely affect the
future exploitation of the ore body which would be executed on proven ore
reserves.
· The dry electromagnetic drums were designed to process ore with a 3% humidity
factor. Water was encountered in the third benches of Pits 1 and 2 of the Japonesa
Ore Body and the humidity factor of the ore rose to over 7% which led to plugging
of the electromagnetic drums which in turn resulted in an unsatisfactory recovery
factors and unscheduled plant down time.

· Besalco Maquinarias S. A., the primary mining services contractor was not
achieving the production targets with respect to the plant throughput agreed to in
the contracts celebrated with SCM Vallenar Iron Company.

Explains a few things.