MACHACALA

Tailings Data

In 2012, samples were taken and assayed by Corizona Mining Partners, LLC. The average gold grade over the multiple tests on the tailings exceeded previous sampling in historical reports.  Corizona expected gold grades of around 1.2g/T, but results came back with an average grade of 1.71g/T.

 

To the contrary, Silver grades of the multiple tests on the tailings came in less than findings in previous studies on the property. Corizona expected a silver grade of around 2.44oz/T, but results came back with an average grade of 1.84oz/T.

 

A high percentage of gold recovery happens within the first 24 hours. (84 – 87%)

 

The combination of all the sample results validated that production of the tailings is economical and viable. On the basis of the test results it is believed the Company can recover 85%+ of the gold and 50%+ of the silver from the existing 210,000 tons of tailings on site.

 

Gold recovery happens very fast, within 24 hours, and the material does not need to be milled any further. The benefit of leaching the material for an additional 16 - 24 hours and milling it further is minimal and not economic.

 

The metallurgy indicates a ‘docile’ ore with little contamination of cyanide elements. The ore is very clean; cyanide levels are all acceptable or excellent.

Volume:      210,000 Metric Tons (Est.)

 

Grades:      1.34g/t Au  9,000 oz.    (Est.)
                    56.36 g/t Ag  380,000 oz. (Est.)

 

Location: Tailings are located on the 150 hectares where surface rights are controlled.

 

Metallurgical studies show 85%+ Au, 50%+ Ag recoveries in 24 hrs leaching on un-milled tailings


Re-milling (-400 mesh) shows ability to increase recoveries to 90% Au, 73% Ag in 24 hrs leaching.