At the Aranzazu mine, the mineralized skarns occur adjacent to portions of the intrusive complex with intense stockwork veining of quartz, orthoclase and sericite in some areas. Skarn mineralization in the historic Aranzazu area occurs on the margin of a large, orthoclase, secondary biotite and sericitealtered, iron-stained zone. Several other areas of strong iron-staining, mineralized skarn, or mineralized veins and chimneys, occur throughout the area and have not yet received systematic exploration.
The Aranzazu mine consists of the originally mined Arroyos Azules area, the historical, past producing El Cobre area, and more than two kilometres of mineralized strike in a copper-gold-silver skarn deposit, plus significant advanced-stage exploration targets. This land package covers approximately 11,072 hectares and hosts a large copper resource with significant concentrations of gold and silver.
Since taking over the Aranzazu mine in June 2008, the Company has completed a total of 108,052 metres of drilling in 471 drill holes.
Based on the wide and continuous mineralization system further demonstrated by the 2011 mineral resource estimate, suitable ground conditions and the fact that the Aranzazu mine has a large and expanding resource base open along strike and at depth, the Company will be initiating a preliminary economic assessment study based on evaluating an expanded throughput rate up to 5,000 tonnes per day. A throughput rate beyond 5,000 tonnes per day would require a new concentrator location. Preliminary work has already started, but the bulk of the study will take place during the first half of 2012. The expansion would be based on a low cost bulk mining scenario such as long-hole open stoping.