If you want to know more on what we have, this is an older...

If you want to know more on what we have, this is an older report, but it provides more detail than some of the presentations delivered.

NI43-101 TECHNICAL REPORT ON THE LOMERO-POYATOS Au-Cu-Pb-Zn MINE
IN ANDALUSIA, SPAIN


https://www.sec.gov/Archives/edgar/data/947121/000117625612000719/exhibit99-1.htm


Highlights from the report:

“The author estimates that the Lomero-Poyatos property has an Inferred Mineral Resource of 6.07 Mt at 4.25 g/t Au, 88.74 g/t Ag, containing 0.83 Moz Au. The Mineral Resource estimate contains only mineralization within the >25% S mineral envelope using a 1 g/t Au cut-off for an underground mining scenario.

The estimated historical production was at least 2.6 million tonnes of massive sulphide ore grading 5g/t Au, 80g/t Ag, 1.20% Cu, 1.10% Pb and 2.91% Zn from orebodies containing variable, but significant amounts of copper, lead, zinc and silver.
The gold grades at Lomero-Poyatos, deduced from the sampling and exploration data, are some of the highest known in the Iberian Pyrite Belt.

“Through Recursos, CMR spent about US $7.5 million on an extensive programme of exploration and drilling during the years 2001-2007…..
SRK was commissioned to undertake a JORC compliant resource estimate and an associated conceptual mining study in 2002 based on a gold price at time of study of US$ 330/oz.
Key outcomes of the study were as follows (as at December 2002).
The results from drill testing within the northeast Lomeros extension included:

• 16.6 metres @ 7.7 g/t gold in drill hole L01-3,
• 21.5 metres @ 5 g/t gold in drill hole L01-2 and,
• 20.4 metres at a composite grade of 6.82 g/t gold, 139 g/t silver and high base metals in drill- hole L03–25. Drill hole L03-42 intersected 33 metres of semi-massive sulphide including 29.4 metres of 0.52 g/t gold containing a maximum value of 2.97 g/t gold.

The intersection of an extensive thickness of semi-massive sulphide in drill hole L03-42 indicated proximity to the core or "feeder zone" of the deposit. In support of this view, follow-up drill hole L03-46 intercepted an interpreted feeder zone with values in the range 0.3g/t gold to 0.8g/t gold, a 5.65 metre zone of massive sulphide and 16.55 metres of semi-massive sulphide including 5.8 metres of 0.93 g/t gold. These drill intersections extended the northeast extension zone beyond the limits of the known underground mine.”
“A strong EM conductor west of the known limits of the Poyatos orebody indicated a previously undefined target. Drill hole L01-4 highlighted the auriferous nature of the western area with an intercept of 3 metres of 4.9 g/t gold and associated base metals. West of L01-4, drill-hole L03-47 encountered 1.65 metres of 4.02 g/t gold in massive sulphide with a peak value of 11.12% zinc.”

“In July 2002, independent metallurgical consultant Tony Jackson reviewed this data and concluded from his experience of roaster and cyanidation test-work with other Pyrite Belt ores that gold recoveries of 80% could be anticipated from Lomero-Poyatos ore following refinement of the roast and cyanidation process.”

When POG was $330/oz at time SDK concluded

• “The SRK economic model indicated that the project was economically robust, but the economics could be improved by further drilling to upgrade the resources thus reducing the applied discount factor for calculation of the project NPV.

• There was potential for a significant increase in resources as the deposit was open along strike and down dip and a gravity survey had identified anomalies at depth.
• There was an established infrastructure in the area including roads, railway, power and water supplies, etc.
• There was an existing Exploitation Permit for the Lomero-Poyatos project, consolidated for 60 years that reduces the permitting requirements of the project.

• There were established local mining contractors and processing facilities for both open-pit and underground mining that offered potential for a quick-start option.
• There was potential to increase production to as much as 1 million ROM tonnes per year.
• Metal and gold recoveries needed to be confirmed through further test work and to evaluate alternative processing routes.
• The cost of treating the mine water must be established before mine dewatering can commence.

SRK concluded that, using the technical and financial parameters adopted in the SRK study, the Lomero-Poyatos Project appeared to be economically robust, based on mine production of 350,000 tonnes of ore per year and using locally available processing facilities.

The author believes with the application of potential underground mining constraints that the Lomero-Poyatos deposit currently contains an estimated Inferred Mineral Resource of 6.07 Mt averaging 4.25 g/t of gold and 88.74g/t of silver, after the application of a minimum drill-hole intersection of 2m at 1 g/t Au. The estimate accounts for the mined out area and it assumes an average SG of 4.5 at a 1 g/t Au cut-off. The deposit also contains some minor copper, lead and zinc values.

I found the document well worth the read and worth sharing.

Desie101