Cerro Blanco Gold Project

Snap Shot

Location

Jutiapa,
Guatemala

Ownership

100%

Mining Method

Underground

Estimated Mine Life

+9 years

Production Profile

138,000 oz/yr Avg 1

Resource Grade

Indicated Grade
10.2 g/t gold

Operating Cash Costs

US$372/oz gold Avg.
(net credits)

Stage

Feasibility Study ongoing
(expected by End of 2018)

1. Average production in the first four years of production

Details

The Cerro Blanco gold project is located in southeast Guatemala approximately 160 kilometers by road from the capital, Guatemala City. It is located in the Jutiapa Department, approximately nine kilometers west of the border with El Salvador. The nearest town to the project is Asunción Mita, a community of about 15,000 people approximately ten kilometers from the project.

Country map

Previous owners invested approximately US$230 million into the project (US$60 million of which went into the Mita Geothermal project). Existing infrastructure includes portals, declines, and multiple Alimak vent rasies. Three kilometers of underground development has been completed including limited trial mining.

Select mining equipment was acquired from the Marlin mine within the country as part of the acquisition. This includes a 12 MW CAT diesel generator set, scoop trams, jumbos, bolters and underground drills, an assay lab, and other various mobile equipment.

Cerro Blanco Gold Project Cerro Blanco Gold Project

Geology

The Cerro Blanco gold project is a classic hot springs-related, low sulphidation gold-silver deposit. Mineralization occurs within composite veins of chalcedony, quartz, adularia and calcite. The veins cut intensely-altered volcaniclastic rocks, limestones and sandstones.

Cerro Blanco Gold Project

The current resource occurs under a small hill and has a footprint of about 400 meters by 800 meters and occurs between elevations of 300 meters and 500 meters above sea level. It occurs at the south end of a north-south corridor of hydrothermal alteration, about five kilometers long and one kilometer wide. This corridor has several other gold targets under investigation now. The current resource comprises both high and low angle veins of colloform chalcedony, adularia, dark grey bands of silver sulphides, and bladed calcite replacement texture. These textures are all classic indicators of boiling fluids, the type that deposit gold and silver in modern geothermal districts.

The deposit is currently dewatered to 417 meters above sea level, which represents approximately 35% of the gold resource. Dropping one level (30 meters) would represent approximately 52% of the gold resource dewatered.

Cerro Blanco Gold Project
Exploration Targets