Bolanitos Technical Report March 2016 PDF
Bolanitos Technical Report March 2016 PDF
Bolanitos Technical Report March 2016 PDF
Prepared for:
Prepared by:
Endorsed by QP(s):
Zachary J. Black, (HRC), SME-RM (No. 4156858RM)
J. J. Brown, P.G. (HRC), SME-RM (No. 4168244RM)
Jeff Choquette, P.E. (HRC), State of Montana (No. 12265)
IMPORTANT NOTICE
This report was prepared as a National Instrument 43-101 Technical Report for Endeavour Silver Corp.
(EDR) by Hardrock Consulting, LLC (HRC). The quality of information, conclusions, and estimates
contained herein is consistent with the scope of HRCs services based on: i) information available at the
time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions, and
qualifications set forth in this report. This report is intended for use by EDR subject to the terms and
conditions of its contract with HRC, which permits EDR to file this report with Canadian Securities
Regulatory Authorities pursuant to National Instrument 43-101, Standards of Disclosure for Mineral
Projects. Except for the purposes legislated under provincial securities law, any other use of this report by
any third party is at that partys sole risk.
Endeavour Silver Corp. NI 43-101 Technical Report
Bolaitos Project Certificates of Author
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TABLE OF CONTENTS
1. EXECUTIVE SUMMARY .................................................................................................................. 1
1.1 INTRODUCTION....................................................................................................................................... 1
1.2 PROPERTY DESCRIPTION AND OWNERSHIP ............................................................................................... 1
1.3 GEOLOGY AND MINERALIZATION ............................................................................................................. 1
1.4 STATUS OF EXPLORATION ....................................................................................................................... 2
1.5 MINERAL RESOURCE ESTIMATE ............................................................................................................... 3
1.6 MINERAL RESERVE ESTIMATE ................................................................................................................. 4
1.7 CONCLUSIONS AND RECOMMENDATIONS.................................................................................................. 5
2. INTRODUCTION ............................................................................................................................. 8
2.1 ISSUER AND TERMS OF REFERENCE ......................................................................................................... 8
2.2 SOURCES OF INFORMATION ..................................................................................................................... 8
2.3 QUALIFIED PERSONS AND PERSONAL INSPECTION..................................................................................... 9
2.4 UNITS OF MEASURE .............................................................................................................................. 10
3. RELIANCE ON OTHER EXPERTS .................................................................................................. 11
4. PROPERTY DESCRIPTION AND LOCATION ................................................................................. 12
4.1 PROJECT LOCATION .............................................................................................................................. 12
4.2 MINERAL TENURE, AGREEMENTS AND ENCUMBRANCES ......................................................................... 13
4.3 PERMITS AND ENVIRONMENTAL LIABILITIES........................................................................................... 15
5. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY .....17
5.1 ACCESS AND CLIMATE ........................................................................................................................... 17
5.2 LOCAL RESOURCES AND INFRASTRUCTURE ............................................................................................. 17
5.3 BOLAITOS MINE PHYSIOGRAPHY ......................................................................................................... 17
5.4 SURFACE RIGHTS .................................................................................................................................. 18
6. HISTORY....................................................................................................................................... 19
6.1 HISTORICAL EXPLORATION.................................................................................................................... 19
6.2 HISTORICAL PRODUCTION ..................................................................................................................... 19
6.3 HISTORIC MINERAL RESOURCE AND RESERVE ESTIMATES ...................................................................... 19
7. GEOLOGICAL SETTING AND MINERALIZATION......................................................................... 20
7.1 REGIONAL GEOLOGY .............................................................................................................................20
7.1.1 Stratigraphy .................................................................................................................................. 22
7.1.2 Esperanza Formation .................................................................................................................... 23
7.1.3 La Luz Formation .......................................................................................................................... 23
7.1.4 Guanajuato Formation (Eocene to Oligocene) .............................................................................. 24
7.1.5 Loseros Formation (Cenozoic) ...................................................................................................... 24
7.1.6 Bufa Formation (Cenozoic) ........................................................................................................... 24
7.1.7 Calderones Formation (Cenozoic) ................................................................................................. 24
7.1.8 Cedros Andesite (Cenozoic) ........................................................................................................... 24
7.1.9 Chichndaro Formation (Cenozoic) ............................................................................................... 25
7.1.10 Comanja Granite (Cenozoic) ..................................................................................................... 25
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LIST OF FIGURES
FIGURE 4-1 BOLAITOS PROJECT LOCATION ........................................................................................................... 12
FIGURE 4-2 BOLAITOS MINE CLAIM MAP.............................................................................................................. 13
FIGURE 7-1 REGIONAL GEOLOGY OF THE BOLAITOS PROJECT AREA (EDR, 2016; MODIFIED FROM CLARK, 2009)... 21
FIGURE 7-2 STRATIGRAPHIC COLUMN, EASTERN GUANAJUATO MINING DISTRICT.................................................... 23
FIGURE 7-3 SCHEMATIC CROSS SECTION SHOWING ALL KNOWN VEINS IN THE LA LUZ SUB-DISTRICT ....................... 27
FIGURE 7-4 SURFACE MAP INDICATING THE LOCATION OF THE VEINS AND MINERAL CONCESSION BOUNDARIES FOR
THE BOLAITOS GOLONDRINAS (EL PUERTECITO AREA) MINES IN THE LA LUZ DISTRICT, GUANAJUATO ........ 28
FIGURE 7-5 LUCERO VEIN IN THE BOLAITOS MINE ............................................................................................... 29
FIGURE 8-1 ALTERATION AND MINERAL DISTRIBUTIONS WITHIN A LOW SULPHIDATION EPITHERMAL VEIN SYSTEM . 32
FIGURE 9-1 SURFACE MAP SHOWING EXPLORATION TARGETS ................................................................................ 34
FIGURE 10-1 SURFACE MAP SHOWING COMPLETED DRILL HOLES IN THE BOLAITOS NORTH AREA. .......................... 46
FIGURE 10-2 LONGITUDINAL SECTION (LOOKING NE) SHOWING INTERSECTION POINTS ON SAN IGNACIO VEIN ........ 50
FIGURE 10-3 LONGITUDINAL SECTION (LOOKING NE) SHOWING INTERSECTION POINTS ON SAN MIGUEL VEIN ......... 51
FIGURE 10-4 LONGITUDINAL SECTION (LOOKING EAST) SHOWING INTERSECTION POINTS ON BOLAITOS VEIN ........ 52
FIGURE 10-5 SURFACE MAP SHOWING COMPLETED DRILL HOLES IN THE BOLAITOS SOUTH AREA. .......................... 54
FIGURE 10-6 LONGITUDINAL SECTION (LOOKING NE) SHOWING INTERSECTION POINTS ON REYES VEIN .................. 57
FIGURE 10-7 LONGITUDINAL SECTION (LOOKING NE) SHOWING INTERSECTION POINTS ON LA CUESTA NORTH VEIN58
FIGURE 10-8 SURFACE MAP SHOWING COMPLETED DRILL HOLES IN THE SIGLO XX AREA. ........................................60
FIGURE 10-9 LONGITUDINAL SECTION (LOOKING NE) SHOWING INTERSECTION POINTS ON SIGLO XX VEIN ............. 62
FIGURE 10-10 MAP SHOWING COMPLETED DRILL HOLES IN THE LA JOYA AREA. ....................................................... 64
FIGURE 10-11 LONGITUDINAL SECTION (LOOKING NE) SHOWING INTERSECTION POINTS ON LA JOYA VEIN ............... 66
FIGURE 10-12 MAP SHOWING COMPLETED DRILL HOLES IN THE DANIELA FW & GABRIELA AREA. .............................68
FIGURE 10-13 LONGITUDINAL SECTION (LOOKING NE) SHOWING INTERSECTION POINTS ON GABRIELA VEIN............ 70
FIGURE 11-1 SILVER PULP DUPLICATES .................................................................................................................. 74
FIGURE 11-2 GOLD PULP DUPLICATES.................................................................................................................... 74
FIGURE 11-3 SILVER REJECT DUPLICATES............................................................................................................... 75
FIGURE 11-4 GOLD REJECT DUPLICATES ................................................................................................................ 75
FIGURE 11-5 SILVER FIELD DUPLICATES ................................................................................................................. 76
FIGURE 11-6 GOLD FIELD DUPLICATES................................................................................................................... 76
FIGURE 11-7 FLOW SHEET FOR CORE SAMPLING, SAMPLE PREPARATION AND ANALYSIS ........................................... 78
FIGURE 11-8 CONTROL CHART FOR GOLD ASSAY FROM THE BLANK SAMPLES INSERTED INTO THE SAMPLE STREAM.. 79
FIGURE 11-9 CONTROL CHART FOR SILVER ASSAY FROM THE BLANK SAMPLES INSERTED INTO THE SAMPLE STREAM 79
FIGURE 11-10 SCATTER PLOT FOR DUPLICATE SAMPLES FOR GOLD ........................................................................ 80
FIGURE 11-11 SCATTER PLOT FOR DUPLICATE SAMPLES FOR SILVER ....................................................................... 80
FIGURE 11-12 CONTROL CHART FOR GOLD ASSAYS FROM THE STANDARD REFERENCE SAMPLE EDR-31 ................... 82
FIGURE 11-13 CONTROL CHART FOR SILVER ASSAYS FROM THE STANDARD REFERENCE SAMPLE EDR-31 ................. 82
FIGURE 11-14 CONTROL CHART FOR GOLD ASSAYS FROM THE STANDARD REFERENCE SAMPLE EDR-39................... 82
FIGURE 11-15 CONTROL CHART FOR SILVER ASSAYS FROM THE STANDARD REFERENCE SAMPLE EDR-39 ................. 83
FIGURE 11-16 SCATTER PLOT OF CHECK ASSAYS FOR GOLD .................................................................................... 83
FIGURE 11-17 SCATTER PLOT OF CHECK ASSAYS FOR SILVER...................................................................................84
FIGURE 14-1 VLP SHOWING THE BELEN VEIN WITH INDICATED (BLUE), INFERRED (PURPLE), AND LOW GRADE
RESOURCE BLOCKS (BLACK) .......................................................................................................................... 91
FIGURE 14-2 CROSS SECTION DIAGRAM OF VLP METHOD ...................................................................................... 92
FIGURE 14-3 CROSS SECTION (5 METER THICK) OF KARINA VEIN SHOWING DRILLHOLE AND CHANNEL SAMPLES, AND
SELECTED COMPOSITES................................................................................................................................. 93
FIGURE 14-4 LEVEL PLAN SECTION (5-METER-THICK) OF KARINA VEIN SHOWING SAMPLES AND SELECTED
COMPOSITES ................................................................................................................................................. 94
FIGURE 14-5 PLAN VIEW OF MAIN BOLAITOS AREA .............................................................................................. 94
FIGURE 14-6 DOWN DIP VIEW OF MAIN BOLAITOS AREA ...................................................................................... 95
FIGURE 14-7 PLAN VIEW OF LA LUZ SUR AREA ...................................................................................................... 95
FIGURE 14-8 LONG SECTION VIEW OF LA LUZ SUR AREA........................................................................................ 96
FIGURE 14-9 LONG SECTION OF KARINA VEIN BLOCK MODEL WITH MINEABLE VOLUMES CODED RED .....................98
FIGURE 14-10 LONG SECTION VIEW OF DANIELA SUR VEIN BLOCK MODEL SHOWING THE ESTIMATED SILVER GRADES
AND COMPOSITES........................................................................................................................................ 109
FIGURE 14-11 LONG SECTION VIEW OF DANIELA SUR VEIN BLOCK MODEL SHOWING THE ESTIMATED GOLD GRADES
AND COMPOSITES......................................................................................................................................... 110
FIGURE 15-1 LA LUZ AND PLATEROS VEIN RESOURCE AND RESERVE SECTION........................................................ 122
FIGURE 17-1 GENERAL VIEW OF THE BOLAITOS PROCESSING PLANT ................................................................... 129
FIGURE 17-2 PROCESS FLOW SHEET OF THE BOLAITOS PLANT ............................................................................ 130
FIGURE 17-3 VIEW OF THE PRIMARY CRUSHER CIRCUIT (LEFT); CRUSHED ORE BINS (RIGHT) ................................ 130
FIGURE 17-4 VIBRATION SCREEN, SINGLE 6X16DECK (LEFT); FINE CRUSHING CIRCUIT (RIGHT) ........................... 131
FIGURE 17-5 ORIGINAL BALL MILL #1, SIZE 96X14 (LEFT), BALL MILL #2, SIZE 11X187, 1000 HP MOTOR, AND
FINE ORE BIN ON THE BACK, BOTH INSTALLED IN 2011 (RIGHT) ..................................................................... 131
FIGURE 17-6 1ST CLEANER CELLS (LEFT); FLOCCULENT MIXING SYSTEM (RIGHT) ................................................. 132
FIGURE 17-7 FILTER PRESS (LEFT); CONCENTRATE STORAGE AND SHIPMENT LOADING AREA (RIGHT) ................... 132
LIST OF TABLES
TABLE 1-1 MINERAL RESOURCE ESTIMATE, EFFECTIVE DATE DECEMBER 31ST, 2015 ................................................. 4
TABLE 1-2 MINERAL RESERVE ESTIMATE ................................................................................................................. 5
TABLE 4-1 SUMMARY OF THE MINERAL CONCESSIONS OWNED BY ENDEAVOUR SILVER ............................................ 14
TABLE 4-2 SUMMARY OF THE ENDEAVOUR SILVERS ROYALTIES ............................................................................. 14
TABLE 4-3 SUMMARY OF ENDEAVOUR SILVERS SURFACE ACCESS RIGHTS .............................................................. 15
TABLE 9-1 SIGNIFICANT INTERCEPTS FROM EDR'S 2015 EXPLORATION PROGRAM ................................................... 36
TABLE 10-1 BOLAITOS PROJECT SURFACE & UNDERGROUND EXPLORATION DRILLING ACTIVITIES IN 2015 ............. 43
TABLE 10-2 2015 SUMMARY OF SAN IGNACIO SURFACE DIAMOND DRILLING PROGRAM ........................................... 44
TABLE 10-3 2015 SUMMARY OF SAN MIGUEL SURFACE DIAMOND DRILLING PROGRAM ............................................ 44
TABLE 10-4 2015 SUMMARY OF BOLAITOS NORTH SURFACE DIAMOND DRILLING PROGRAM .................................. 45
TABLE 10-5 SURFACE DRILL HOLE ASSAY SUMMARY FOR INTERCEPTS IN THE SAN IGNACIO AREA............................. 47
TABLE 10-6 SURFACE DRILL HOLE ASSAY SUMMARY FOR INTERCEPTS IN THE SAN MIGUEL AREA. ............................48
TABLE 10-7 SURFACE DRILL HOLE ASSAY SUMMARY FOR INTERCEPTS IN THE BOLAITOS AREA. .............................. 49
TABLE 10-8 2015 SUMMARY OF REYES SURFACE DIAMOND DRILLING PROGRAM ..................................................... 53
TABLE 10-9 2015 SUMMARY OF LA CUESTA NORTH SURFACE DIAMOND DRILLING PROGRAM .................................. 53
TABLE 10-10 SURFACE DRILL HOLE ASSAY SUMMARY FOR INTERCEPTS IN THE REYES AREA. .................................... 55
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TABLE 10-11 SURFACE DRILL HOLE ASSAY SUMMARY FOR INTERCEPTS IN THE LA CUESTA NORTH AREA. ................. 56
TABLE 10-12 2015 SUMMARY OF SIGLO XX SURFACE DIAMOND DRILLING PROGRAM............................................... 59
TABLE 10-13 SURFACE DRILL HOLE ASSAY SUMMARY FOR INTERCEPTS IN THE SIGLO XX AREA. ............................... 61
TABLE 10-14 2015 SUMMARY OF LA JOYA UNDERGROUND DIAMOND DRILLING PROGRAM ....................................... 63
TABLE 10-15 UNDERGROUND DRILL HOLE ASSAY SUMMARY FOR INTERCEPTS IN THE LA JOYA AREA......................... 65
TABLE 10-16 2015 SUMMARY OF DANIELA FOOTWALL UNDERGROUND DIAMOND DRILLING PROGRAM..................... 67
TABLE 10-17 2015 SUMMARY OF GABRIELA UNDERGROUND DIAMOND DRILLING PROGRAM .................................... 67
TABLE 10-18 UNDERGROUND DRILL HOLE ASSAY SUMMARY FOR INTERCEPTS IN THE DANIELA FW AREA. ................. 69
TABLE 10-19 UNDERGROUND DRILL HOLE ASSAY SUMMARY FOR INTERCEPTS IN THE GABRIELA AREA. .................... 69
TABLE 11-1 SUMMARY OF ANALYSIS PROCEDURES .................................................................................................. 72
TABLE 11-2 SUMMARY OF SAMPLE TYPE AND NUMBER USED DURING THE 2015 SURFACE EXPLORATION PROGRAM... 77
TABLE 11-3 REFERENCE STANDARDS USED FOR ENDEAVOUR SILVERS DRILLING PROGRAMS ................................... 81
TABLE 11-4 BASIS FOR INTERPRETING STANDARD SAMPLE ASSAYS .......................................................................... 81
TABLE 12-1 DATABASE IMPORT SUMMARY .............................................................................................................86
TABLE 14-1 SUMMARY OF VEINS INCLUDED IN THE MINERAL RESOURCE ESTIMATE .................................................90
TABLE 14-2 BOLAITOS BLOCK MODEL PARAMETERS ............................................................................................ 97
TABLE 14-3 VEIN MODEL SAMPLE STATISTICS .......................................................................................................98
TABLE 14-4 COMPOSITE TRUE THICKNESS STATISTICS BY VEIN .............................................................................. 99
TABLE 14-5- CAPPING LIMITS FOR SILVER AND GOLD BY VEIN ............................................................................... 100
TABLE 14-6 CAPPED SILVER SUMMARY STATISTICS WITHIN VEINS ........................................................................ 100
TABLE 14-7 CAPPED GOLD SUMMARY STATISTICS WITHIN VEINS ...........................................................................101
TABLE 14-8 SUMMARY OF SILVER VARIOGRAM PARAMETERS ................................................................................ 102
TABLE 14-9 SUMMARY OF GOLD VARIOGRAM PARAMETERS .................................................................................. 103
TABLE 14-10 ESTIMATION PARAMETERS .............................................................................................................. 104
TABLE 14-11 SILVER MODEL DESCRIPTIVE STATISTICAL COMPARISON ................................................................... 105
TABLE 14-12 GOLD MODEL DESCRIPTIVE STATISTICAL COMPARISON .................................................................... 107
TABLE 14-13 CUTOFF GRADE ASSUMPTIONS FOR BOLAITOS MINE........................................................................ 112
TABLE 14-14 POLYGONAL RESOURCE AT THE BOLAITOS, EFFECTIVE DATE OF DECEMBER 31, 2015 ....................... 113
TABLE 14-15 3D BLOCK MODEL RESOURCE AT THE BOLAITOS MINE, EFFECTIVE DATE OF DECEMBER 31, 2015 ..... 115
TABLE 14-16 MINERAL RESOURCE ESTIMATE, EFFECTIVE DATE DECEMBER 31ST, 2015 ........................................... 117
TABLE 15-1 MINERAL RESERVE BREAKEVEN CUTOFF FOR THE BOLAITOS PROPERTY ............................................. 119
TABLE 15-2 2015 MINE TO PLANT RECONCILIATION............................................................................................. 120
TABLE 15-3 PROVEN AND PROBABLE MINERAL RESERVES, EFFECTIVE DATE DECEMBER 31, 2015 .......................... 123
TABLE 16-1 BOLAITOS OWNED MINE EQUIPMENT .............................................................................................. 126
TABLE 16-2 CONTRACTOR MINE EQUIPMENT....................................................................................................... 127
TABLE 16-3 SUMMARY OF 2015 BOLAITOS PRODUCTION .................................................................................... 127
TABLE 16-4 SUMMARY OF 2015 BUDGET VERSUS ACTUAL PRODUCTION ................................................................ 128
TABLE 18-1 SUMMARY OF THE ELECTRIC INSTALLATIONS AT THE BOLAITOS PROJECT .......................................... 134
TABLE 19-1 AVERAGE ANNUAL HIGH AND LOW LONDON PM FIX FOR GOLD AND SILVER FROM 2000 TO 2015 (PRICES
EXPRESSED IN US$/OZ)............................................................................................................................... 135
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APPENDICES
Appendix A Bolaitos 2015 Exploration Results
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Bolaitos Project List of Acronyms
LIST OF ACRONYMS
AA Atomic Absorption
HDPE High Density Polyethylene
AES Atomic Emission Spectrometry
HRC Hardrock Consulting
EDR Endeavour Silver Corp.
NYSE New York Stock Exchange
FSE Frankfurt Stock Exchange
TSX Toronto Stock Exchange
CIM Canadian Institute of Mining, Metallurgy and Petroleum
QA/QC Quality Assurance/Quality Control
CMC Compaia Minera del Cubo S.A. de C.V.
SRM Standard Reference Material
CL Control Limit
LL Lower Control Limit
UL Upper Control Limit
ID Inverse Distance
OK Ordinary Kriging
NN Nearest Neighbor
CV Coefficient Variation
MSO Mineable Shape Optimizer
CEMEFI Mexican Center for Philanthropy
ESR Socially Responsible Company
HP Horsepower
1. EXECUTIVE SUMMARY
1.1 Introduction
Hard Rock Consulting, LLC (HRC) was retained by Endeavour Silver Corp. (EDR) to complete an
independent technical audit and to update the mineral resource and reserve estimates for the Bolaitos
Project (the Project) located in Guanajuato State, Mexico. This report presents the results of HRCs
efforts, and is intended to fulfill the Standards of Disclosure for Mineral Projects according to Canadian
National Instrument 43-101 (NI 43-101). This report was prepared in accordance with the requirements
and guidelines set forth in Companion Policy 43-101CP and Form 43-101F1 (June 2011), and the mineral
resources and reserves presented herein are classified according to Canadian Institute of Mining,
Metallurgy and Petroleum (CIM) Definition Standards - For Mineral Resources and Mineral Reserves,
prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council on May 10,
2014. The mineral resource and mineral reserve estimates reported here are based on all available technical
data and information as of December 31, 2015.
The Bolaitos Project is located in the state of Guanajuato, Mexico. The mine consists of three operating
mines: the Bolaitos, Lucero, and Asuncion mines, which are located near the town of La Luz, about 12 km
to the northeast of Guanajuato. All of the mines are readily accessed by paved and gravel roads. EDR also
owns the inactive Cebada mine, located about 5 km north of the city of Guanajuato, and the inactive
Golondrinas mine, which is 3.5 km to the southwest of Cebada.
The Guanajuato mining district is characterized by classic, high grade silver-gold, epithermal vein deposits
with low sulfidation mineralization and adularia-sericite alteration. Veins in the Guanajuato district are
typical of most epithermal silver-gold vein deposits in Mexico with respect to the volcanic or sedimentary
host rocks and the paragenesis and tenor of mineralization. The Guanajuato mining district hosts three
major mineralized fault systems, the La Luz, Veta Madre and Sierra systems.
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Bolaitos Project Executive Summary
Of the geological formations associated with the Guanajuato district, only the Esperanza and La Luz
Formations occur in the Bolaitos mine area with mineralization residing primarily within the La Luz
Formation. Mineralization is known to dissipate at the contact with the Esperanza Formation.
The Veta Madre historically was the most productive vein in the Guanajuato district, and is by far the most
continuous, having been traced on the surface for nearly 25 km. The vein dips from 35 to 55 to the
southwest with measured displacement of around 1,200m near the Las Torres mine and 1,700 m near La
Valenciana mine. The most productive veins at Bolaitos strike parallel to the Veta Madre system.
Mineralized veins at Bolaitos consist of the classic banded and brecciated epithermal variety. Silver occurs
primarily in dark sulfide-rich bands within the veins, with little mineralization within the wall rocks. The
major metallic minerals reported include pyrite, argentite, electrum and ruby silver, as well as some galena
and sphalerite, generally deeper in the veins. Mineralization is generally associated with phyllic (sericite)
and silicification alteration which forms haloes around the mineralizing structures. The vein textures are
attributed to the brittle fracturing-healing cycle of the fault-hosted veins during and/or after faulting.
Economic concentrations of precious metals are present in shoots distributed vertically and laterally
between non-mineralized segments of the veins. Overall, the style of mineralization is pinch-and-swell with
some flexures resulting in closures and others generating wide sigmoidal breccia zones.
Bolaitos North (Bolaitos, San Ignacio, San Miguel & Realejo Veins);
Bolaitos South (San Antonio);
Ana Rosa and Belen (Erika, Ana, Edith and Perla).
These activities were mainly conducted to complete the delineation of the Bolaitos North structures, and
to investigate possible targets of interest in the South West part of Belen and in the Ana Rosa claim (located
at SW of la Luz town).
Exploration activities were designed to generate drill targets and to further refine areas of interest by
discriminating between mineralized and barren ground. Geochemical sampling has been successful
identifying vein systems anomalous in gold and silver, as well as identifying other modes of mineralization
(Rio Dike). Detailed geologic mapping is problematic in the Bolaitos Project area due to rugged terrain,
dense vegetation, and the homogeneity of the country rock, making it difficult to distinguish between units.
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The Bolaitos mineral resource is comprised of 21 individual veins. The veins are further subdivided into
areas and modeling method. The mineral resources have been estimated using either a Vertical
Longitudinal Projection (VLP) polygonal method (9 veins) or as 3-dimensional (3D) block model (12
veins). The 3D models have been split into 2 areas based on the vein location within the deposit.
The resources based on the 2D polygonal methods are estimated by using a fixed distance Vertical
Longitudinal Projection (VLP) from sample points. The VLPs are created by projecting vein geology and
underground workings onto a vertical 2D long section. Resource blocks are constructed on the VLP based
on the sample locations in the plane of the projection. EDR geologists review the data for sample trends
and delineate areas with similar characteristics along the sample lines. The areas are then grouped based
on mining requirements and the average grades and thicknesses of the samples are tabulated for each
block. Resource volumes are calculated from the delineated area and the horizontal thickness of the vein,
as recorded in the sample database. The volume and density are used to determine the overall resource
tonnage for each area, and the grades are reported as a length weighted average of the samples inside each
resource block.
HRC validated the vein models provided by EDR using Leapfrog. Ten veins were modeled by EDR using a
series of cross-sectional interpretations. The sectional interpretations are based primarily on composite
intercepts and are used to construct 3D vein solids in Vulcan. Cross-sections orthogonal to the strike of the
vein and level plan sections were used to insure sample selections for compositing were contained within
the modeled veins. HRC confirmed the areas reported in EDR resource sheets loading AutoCAD long
VLPs provided by EDR into ArcGIS software, and tracing the perimeter of the resource blocks and
measuring the area with the built in measuring tool. The dip of the vein and true thickness are known
variables.
The mineral resource estimate for the Bolaitos Project as of December 31st, 2015, is summarized in Table
1-1. The mineral resources are exclusive of the mineral reserves.
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Table 1-1 Mineral Resource Estimate, Effective Date December 31st, 2015
1. Measured, Indicated and Inferred resource cut-off grades were 175 g/t silver equivalent at Bolaitos.
2. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no
certainty that all or any part of the mineral resources estimated will be converted into mineral reserves.
3. Metallurgical recoveries were 75.9% silver and 84.7% gold.
4. Silver equivalents are based on a 70:1 silver:gold ratio
5. Price assumptions are $17.60 per ounce for silver and $1,260 per ounce for gold for resource cutoff
calculations.
6. Mineral resources are estimated exclusive of and in addition to mineral reserves.
HRC utilized Datamines MSO (Mineable shape optimizer) program to generate the stopes for the reserve
mine plan. The stopes were created based solely on Measured and Indicated resources above the calculated
cutoff, which have demonstrated to be economically viable; therefore, Measured and Indicated mineral
resources within the stopes have been converted to Proven and Probable mineral reserves as defined by
CIM. Inferred mineral resources are classified as waste. Dilution is applied to Measured and Indicated
resource blocks depending on the mining method chosen.
The mining breakeven cut-off grade, which includes internal stope dilution, was utilized in Datamines
MSO to generate the stope designs for defining the reserves. The cut-off is stated as silver equivalent since
the ratio between gold and silver is variable and both commodities are sold. The average cut-off grade used
for the Bolaitos property is 192 g/t Ag equivalent. Silver equivalent grade is calculated as the silver grade
+ (gold grade * 70), taking into account gold and silver prices and expected mill recoveries.
Mineral reserves are derived from Measured and Indicated resources after applying the economic
parameters as previously stated, and utilizing Datamines MSO program to generate stope designs for the
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reserve mine plan. The Bolaitos Project mineral reserves are derived and classified according to the
following criteria:
Proven mineral reserves are the economically mineable part of the Measured resource for
which mining and processing / metallurgy information and other relevant factors demonstrate
that economic extraction is feasible. For Bolaitos Project, this applies to blocks located within
approximately 10m of existing development and for which EDR has a mine plan in place.
Probable mineral reserves are those Measured or Indicated mineral resource blocks which are
considered economic and for which EDR has a mine plan in place. For the Bolaitos mine
project, this is applicable to blocks located a maximum of 35m either vertically or horizontally
from development.
The Proven and Probable mineral reserves for the Bolaitos Project as of December 31, 2015 are
summarized in Table 1-2. The reserves are exclusive of the mineral resources reported in Section 14 of this
report.
Table 1-2 Mineral Reserve Estimate
Total Proven and Probable Reserves 378.1 292.6 114.3 1,389.3 2.66 32.34 24.0%
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The QP is unaware of any significant technical, legal, environmental or political considerations which
would have an adverse effect on the extraction and processing of the resources and reserves located at the
Bolaitos Mines Project. Mineral resources which have not been converted to mineral reserves, and do not
demonstrate economic viability shall remain mineral resources. There is no certainty that all or any part of
the mineral resources estimated will be converted into mineral reserves.
The QP considers that the mineral concessions in the Bolaitos mining district controlled by EDR continue
to be highly prospective both along strike and down dip of the existing mineralization.
EDRs Bolaitos Mines Project has an extensive mining history with well-known silver and gold bearing
vein systems. Ongoing exploration has continued to demonstrate the potential for the discovery of
additional resources at the project and within the district surrounding the mine. Outside of the currently
known reserve/resource areas, the mineral exploration potential for the Bolaitos Project is considered to
be very good. Parts of the known vein splays beyond the historically mined areas also represent good
exploration targets for additional resource tonnage
Since EDR took control of the Bolaitos Mines Project, new mining areas have enabled EDR to increase
production by providing additional sources of mill feed. EDRs operation management teams continue to
search for improvements in efficiency, lowering costs and researching and applying low-cost mining
techniques.
In 2016, EDR will conduct a surface drilling program at the Bolaitos South area in order to identify
potential mineralization in the Gina, Maru and La Cuesta veins. Regional exploration in 2016 will be
focused on the Tlachiquera claim (recently staked), located in the northwestern portion of the district. The
2016 surface exploration program is planned to include 1,000 m of core, focused on the veins located at the
Bolaitos South area. Budgeted cost of the program is US $ 215,000.
HRC recommends that the process of converting mineral resources into reserves from 2D polygons to 3D
block models be continued. During the last couple of years, considerable progress has been made on this
process with only nine veins remaining to be converted to 3D. Additional modeling efforts should be made
to define the mineralized brecciated areas as they have been an important source of economic material
encountered in the current operation, and could provide additional tonnage to support the mine plan.
EDR currently utilizes the exploration drilling and chip and muck samples in their resource and reserve
calculations. HRC recommends that future efforts focus on constructing block models for resource and
reserve reporting utilizing only the exploration and underground drilling results. The chip and muck
samples should be used to develop the production model. This will help keep data densities consistent in
each modeling effort and will provide another level in the reconciliation process to compare modeling
results.
Although the reconciliations conducted by EDR show good comparison between planned versus actual
values, the reconciliation process should be improved to include the estimated tonnes and grade from the
resource models. Because the LOM plan is compared to the plant production on a monthly basis, the actual
physical location of the material mined may be different than the planned location. Due to the many stopes
that are mined during a day this can only be completed on an average monthly basis due to blending of
stope material into the mill. The monthly surveyed as mined areas should be created into triangulation
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Bolaitos Project Executive Summary
solids and saved on a monthly basis for reporting the modeled tonnes for each month. The combination of
the 3D block models and 2D and polygonal reserves makes this process difficult but considerable progress
has been made during the last year to get all resources and reserves into 3D block models. The model-
predicted results versus actual can then be used to determine if dilution factors need to be adjusted, or
perhaps the resource modeling parameters may require adjustment if there are large variances. The mill
production should be reconciled to the final concentrate shipments on a yearly basis, and resulting
adjustment factors should be explained and reported.
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Endeavour Silver Corp. NI 43-101 Technical Report
Bolaitos Project Introduction
2. INTRODUCTION
This report was prepared in accordance with the requirements and guidelines set forth in NI 43-101
Companion Policy 43-101CP and Form 43-101F1 (June 2011), and the mineral resources and reserves
presented herein are classified according to Canadian Institute of Mining, Metallurgy and Petroleum
(CIM) Definition Standards - For Mineral Resources and Mineral Reserves, prepared by the CIM Standing
Committee on Reserve Definitions and adopted by CIM Council on May 10, 2014. The mineral resource and
mineral reserve estimates reported here are based on all available technical data and information as of
January 31, 2016.
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Bolaitos Project Introduction
43-101 technical report prepared by Micon International for Endeavour Silver, effective date
December 31, 2010.
Lewis, W.J., Murahwi, C., Leader, R.J. and San Martin, A.J., (2010), NI 43-101 Technical Report, Audit
of the Resource and Reserve Estimates for the Guanajuato Mines Project, Guanajuato State, Mexico:
unpublished NI 43-101 technical report prepared by Micon International for Endeavour Silver,
effective date December 31, 2009.
Lewis, W.J., Murahwi, C., Leader, R.J. and San Martin, A.J., (2009), NI 43-101 Technical Report, Audit
of the Resource and Reserves for the Guanajuato Mines Project, Guanajuato State, Mexico:
unpublished NI 43-101 technical report prepared by Micon International for Endeavour Silver,
effective date December 31, 2008.
Beare, M., and Sostre, M., (2008), NI 43-101 Technical Report for the Guanajuato Mines Project,
Guanajuato State Mexico: unpublished NI 43-101 technical report prepared by SRK Consulting for
Endeavour Silver, effective date December 31, 2007.
Additional information was requested from and provided by EDR. With respect to Sections 6 through 13 of
this report, the authors have relied in part on historical information including exploration reports,
technical papers, sample descriptions, assay results, computer data, maps and drill logs generated by
previous operators and associated third party consultants. The authors cannot guarantee the quality,
completeness, or accuracy of historical information, nor its preparation in accordance with NI 43-101
standards. Historical documents and data sources used during the preparation of this report are cited in the
text, as appropriate, and are summarized in report Section 27.
Mr. Black, SME-RM, has 10 years of experience working on structurally controlled gold and silver resources
in the Sierra Madre Occidental of Mexico and the southern United States. Mr. Black completed the mineral
resource estimate for the Milford Mineral Belt Project and is specifically responsible for Sections 1.4, 9
through 12 and 14 of this report.
Ms. Brown, P.G., SME-RM, has 17 years of professional experience as a consulting geologist and has
contributed to numerous mineral resource projects, including more than twenty gold, silver, and
polymetallic resources throughout the southwestern United States and South America over the past five
years. Ms. Brown is specifically responsible for report Sections 2 through 8.
Mr. Choquette, P.E., is a professional mining engineer with more than 18 years of domestic and
international experience in mine operations, mine engineering, project evaluation and financial analysis.
Mr. Choquette has been involved in industrial minerals, base metals and precious metal mining projects
around the world, and is responsible for the current report Sections 1.5, 13, and 15 through 27.
As Qualified Persons and representatives of HRC, Mr. Black and Mr. Choquette conducted an on-site
inspection of the Bolaitos property between August 29th and August 31st 2015. While on site, HRC reviewed
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Bolaitos Project Introduction
EDRs current operating procedures and associated drilling, logging, sampling, quality assurance and
quality control (QA/QC), grade control, and mine planning (short, medium, and long term) procedures.
HRC also inspected the laboratories at the Bolaitos mine properties, as well the plant and the
underground operations.
HRC met with the geology department to review the geologic understanding, sampling methods and types,
modeling (resources, reserves, and grade control), prior to inspecting the procedures in the mine and office
for collecting and handling the data. Once the geology department processes were understood, HRC
discussed with the mine planning and survey department the process for short, medium, and long term
mine planning. Reconciliation was discussed with both departments and the plant supervisors. The
laboratories were toured and the procedures were reviewed with the laboratory managers.
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Bolaitos Project Reliance on Other Experts
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Endeavour Silver Corp. NI 43-101 Technical Report
Bolaitos Project Property Description and Location
EDR acquired the Bolaitos mine Project in 2007 from Industrias Peoles S.A. de C.V. (Peoles), the owner
at the time, and Minas de la Luz, S.A. de C.V. (Minas de la Luz), the operator at the time. The acquisition
included the Mina Cebada, Mina Bolaitos, Mina Golondrinas and Mina Asuncin (as well as a few other
currently closed mines). Minas de la Luz continued as the operator of the mines until June, 2007, when
EDR assumed control. The Mina Asuncin is very close to the Mina Bolaitos and the two are currently
connected underground.
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Bolaitos Project Property Description and Location
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Endeavour Silver Corp. NI 43-101 Technical Report
Bolaitos Project Property Description and Location
EDR has previously met all obligations of established agreements required to obtain the 100% control of all
25 concessions. Two areas retain a percentage in royalties for exploitation, and these are summarized in
Table 4-2.
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Bolaitos Project Property Description and Location
The annual 2016 concession tax for the Guanajuato properties is estimated to be approximately 670,433
Mexican pesos (pesos), which is equal to about US $37,246 at an exchange rate of 18.00 pesos to US $1.00.
In addition to the mineral rights, EDR has agreements with various private ranch owners that provide
access for exploration and exploitation purposes. Table 4-3 summarizes the surface access rights as of
December 31, 2015.
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Bolaitos Project Property Description and Location
safety regulatory standards. HRC knows of no existing or potential future significant factors or risks that
might affect access, title, or the right or ability to perform work on the property.
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Bolanitos Project Accessibility, Climate, Local Resources, Infrastructure & Physiography
The regional climate is temperate, with cool winters and mild summers. Rainfall occurs primarily during
the summer season, from June to September, and typical annual precipitation is about 50 cm per year.
From mid-December through January, nighttime temperatures fall to 7 to 10 C, and daytime high
temperatures in low 20 C range are typical. Snowfall is rare but has been known to occur at the higher
elevations throughout the region. Weather conditions rarely, if ever, restrict mining activity at Bolaitos,
and operations can be carried out year-round.
At each of the mine site on the Bolaitos Project, the water required for operations is supplied from
dewatering of the mines. The tailings facility at the Bolaitos mine is set up to recycle as much water as
possible back into the processing plant.
Power supply to the Bolaitos Project is provided by the national grid CFE (Comisin Federal de
Electricidad), and telephone communications are integrated into the national land-based telephone system
which provides reliable national and international direct dial telephone communications. Satellite
communications also provide phone and internet capabilities at the Bolaitos mine, though the satellite
phone and internet services are slow and sometimes unreliable. There is no cell phone service at any of the
mines.
Additional details regarding infrastructure specific to the Bolaitos Project are provided in Section 18 of this
report.
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Bolanitos Project Accessibility, Climate, Local Resources, Infrastructure & Physiography
are part of the Sierra Madre Occidental. Grass, small trees and shrubs along with several varieties of cacti
make up most of the vegetation on the steeper hillsides, with larger trees found near springs and streams.
The area is mainly devoid of trees except in the valleys and where reforestation has taken place.
Even though there is a reasonable amount of rainfall each year, most of the creeks in the area are usually
dry, with the exception of man-made reservoirs surrounding the city of Guanajuato. Some cattle and/or
goat grazing is carried out in the area over the scrub land. Sections of more arable land have been
deforested to support small plots for growing crops.
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Bolaitos Project History
6. HISTORY
The following paragraphs provide an abbreviated timeline of the history of Bolaitos Project:
1968 - Fresnillo Company acquired claims and incorporated Negociacin Minera Santa Luca
(now Cebada) and the Peregrina mine.
1973 - The contracting company Tormex S.A. completed a photogeological study in the area of
the Cebada mine holdings.
1976 Production began at the Cebada mine; between 1976 and 1995, the Cebada mine
produced 1,277,216 tonnes at an average grade of 4.04 g/t gold and 372 g/t silver.
2003 - Grupo Guanajuato closed the Torres, Sirena, Peregrina and Apolo mines. The Bolaitos,
Golondrinas, Asuncin and Cebada mines stayed in production on a break-even basis.
2007 - EDR acquired the Bolaitos Project, which included, Mina Cebada, Mina Bolaitos, Mina
Golondrinas and Mina Asuncin (as well as a few other currently closed mines), from Peoles,
the owner at the time, and Minas de la Luz, the operator at the time. Minas de la Luz was kept
on as the operator of the mines until June, 2007, when EDR assumed control.
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Bolaitos Project Geological Setting and Mineralization
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Bolaitos Project Geological Setting and Mineralization
Figure 7-1 Regional Geology of the Bolaitos Project Area (EDR, 2016; Modified from Clark, 2009)
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Bolaitos Project Geological Setting and Mineralization
The Guanajuato district is underlain by a volcano-sedimentary sequence of Mesozoic to Cenozoic age rocks.
There are three main northwest trending vein systems that cut these volcano-sedimentary sequences. The
vein systems from west to east are known as the La Luz, Veta Madre and La Sierra systems. These systems
are generally silver-rich with silver to gold ratios from 72:1 to 214:1. They are known along strike for 10 to
25 km.
The Bolaitos mine is located in eastern part of the Guanajuato mining district, in the southeastern portion
of the Sierra de Guanajuato, which is an anticlinal structure about 100 km long and 20 km wide. Bolaitos
is located on the northeast side of this structure where typical primary bedding textures dip 10 to 20 to
the north-northeast. Economic mineralization at Bolaitos is known to extend as much as 250 m vertically
from 2300 m to 2050 m elevation with the exception of the La Luz vein that extends 400 m vertically from
2300 m to 1900 m.
7.1.1 Stratigraphy
The stratigraphy of the Guanajuato mining district can be divided into a Mesozoic basement (Chiodi et al,
1988; Dvila and Martinez, 1987; Martinez-Reyes, 1992) and overlying Cenozoic units, as shown in Figure
7-2. The lower Mesozoic lithological units are the Esperanza and La Luz Formations which are composed of
marine sedimentary rocks, weakly to moderately metamorphosed and intensely deformed by shortening.
These rocks are unconformably overlain by the Tertiary Guanajuato Formation conglomerates, and the
Loseros, Bufa, Calderones, Cedros and Chichndaro Formations. The Tertiary rocks consist of continental
sediments and sedimentary rocks, which generally occupy lower topographic zones, and subaerial volcanic
rocks, which are principally exposed in the ranges and higher plateaus. The rocks of the Cenozoic cover
have experienced only extensional deformation and in some places are gently tilted. Tertiary-aged rocks
correspond to a period of tectonism accompanied by volcanism and intrusive magmatic activity.
Figure 7-2 does not depict the Peregrina intrusive, which is a floored body (laccolith) at the contact of the
Bufa Formation rhyolite and the Guanajuato Formation conglomerate. The uppermost portion of the
Peregrina intrusive extends into the Chichndaro Formation rhyolite. The thickness of each unit presented
graphically in the stratigraphic section represents the maximum thickness of that unit in the vicinity of the
Bolaitos mine.
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Bolaitos Project Geological Setting and Mineralization
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Bolaitos Project Geological Setting and Mineralization
The Calderones Formation overlies the Bufa Formation at Bolaitos with a contact marked by a
megabreccia composed of large (often 5 to 10 m) fragments of the Esperanza, La Luz and Guanajuato
Formations. The Calderones Formation, which exceeds 300 m in thickness at Bolaitos, is the upper
caldera-filling unit above the surge deposit and the Bufa ignimbrites.
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Bolaitos Project Geological Setting and Mineralization
This lithologic unit is closely related to the hypabyssal Peregrina intrusion, and it ranges in thickness from
100 to 250 m. In places, the rhyolite domes contain disseminated tin and vapor-phase cavity-filling topaz
distributed along the flow foliation.
The Chichndaro rhyolite is the youngest volcanic unit in the Guanajuato mining district. Three K-Ar ages
obtained from this formation (Gross, 1975; Nieto- Samaniego et al, 1996) date the unit at 32 1 Ma, 30.8
0.8 Ma and 30.1 0.8 Ma.
7.2 Structure
The following paragraphs are modified from the summary of the structural setting of the Guanajuato
mining district presented by Starling (2008), which focused on the Veta Madre but likely applies to the La
Luz system that composes the Bolaitos mine.
Pre-mineralization deformation during the Laramide orogeny (~80-40 Ma) resulted in west-northwest
trending pre-mineral folds and thrusts in the Esperanza Formation as observed in the Cebada mine on the
Veta Madre. Early post-Laramide extension (~30 Ma) was oriented north-south to north-northeast, and
controlled many vein deposits in the region (e.g. Fresnillo, Zacatecas, La Guitarra). Guanajuato appears to
lie on a north-northwest-trending terrane boundary which was reactivated as a sinistral transtensional
fault zone in conjunction with early stage intermediate-sulfidation style mineralization. Subsequent (~28
Ma) regional extension to the east-northeast-west-northwest resulted in basin and range-type deformation
and block faulting, and is associated with a second phase of mineralization in the Guanajuato district.
Along the Veta Madre vein system, ore shoots were controlled during early-stage mineralization by
counter-clockwise jogs along the main structure and at intersections with west-northwest and northeast
fault zones. These tended to generate relatively steep ore shoots plunging to the south along the Veta
Madre.
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Bolaitos Project Geological Setting and Mineralization
During the second phase of mineralization, listric block faulting and tilting affected parts of the Veta Madre
veins and new systems such as La Luz developed. The veins at La Luz appear to have formed as extensional
arrays between reactivated west-northwest fault zones acting as dextral transtensional structures.
The second phase vein systems tend to have formed sub-horizontal ore zones either reflecting fluid mixing
zones or structural controls due to changes in dip of the fault surface. The overprint of two events means
that in some deposits ore shoots have more than one orientation and that there are vertical gaps in ore
grade.
Randall et al (1994) first proposed a caldera structure as a conceptual geologic model for the Guanajuato
mining district, citing the presence of a mega-breccia in the Calderones Formation and the distribution of
the Oligocene volcanic formations described above. The hypothesis states that the caldera collapse occurred
in at least two stages and the collapse was a trap-door type. The presence of a peripheral three-quarter ring
of rhyolite domes intruding along bounding faults, the location of the Oligocene volcanic formations
ponded within this ring, mega-breccia and topographic rim, all provide supporting evidence for this
hypothesis.
Following caldera formation, normal faulting combined with hydrothermal activity around 27 Ma
(Buchanan, 1980) resulted in many of the silver-gold deposits found in the district. Within the Guanajuato
mining district there are three major mineralized fault systems, the La Luz, Veta Madre, and Sierra
systems. Veta Madre is a north-northwest trending fault system and the largest at 25 km long. The other
systems are subparallel to it. Mineralization occurs within these systems principally on normal faults
oriented parallel to the main trend.
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Bolaitos Project Geological Setting and Mineralization
Figure 7-3 Schematic Cross Section showing all known veins in the La Luz Sub-District
The Veta Madre historically was the most productive vein in the Guanajuato district, and is by far the most
continuous, having been traced on the surface for nearly 25 km. The vein dips from 35 to 55 to the
southwest with measured displacement of around 1,200m near the Las Torres mine and 1,700 m near La
Valenciana mine. The most productive veins at Bolaitos strike parallel to the Veta Madre system.
There are 21 veins within the Bolaitos mine area that are included in the mineral resource estimate. These
mineralized veins are known to occur from an elevation of 2300 m down to an elevation of 1900 m (Figure
7-3).
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Bolaitos Project Geological Setting and Mineralization
Figure 7-4 Surface Map Indicating the Location of the Veins and Mineral Concession Boundaries for the Bolaitos
Golondrinas (El Puertecito Area) Mines in the La Luz District, Guanajuato
7.3.1 Alteration
The hydrothermal alteration of the wall rock is prevalent in the Guanajuato District, and is an excellent
guideline in the mining prospection of Bolaitos. Alteration within the district is closely related to fractures,
veins and brecciated zones. Alteration halos surrounding these zones range from a few centimeters to
meters and can be divided into 4 alteration types: 1) propyllitic, 2) argillic, 3) phyllic, and 4) silicification.
Wall rock alteration at Bolaitos in general is not significantly altered at the depths of mineralization;
however, breccia zones within and near the primary structures do have the typical characteristics of low
sulphidation epithermal vein type alteration. Alteration encountered within the structures forms halos of
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Bolaitos Project Geological Setting and Mineralization
phyllic (sericite) and silicification alteration. Argillic and propyllitic alteration have been identified above
the mineralized level of 2300 m.
Propyllitic alteration is the most widely distributed type and the strongest near fractures, especially in the
intersections of veins. The propyllitic alteration consists of epidote, chlorite, clays and calcite. Phyllic
(sericite) alteration is not as pervasive as the propyllitic alteration, and is generally encounter within or in
immediate contact with the vein. The typical mineral assemblage of this type of alteration consists of pyrite,
illite and sericite with occasional kaolinite and montmorillonite. Argillic alteration consists of kaolinite,
montmorillonite, and halloysite. Silicification is restricted to vein and breccia zones, and typically extends
only a few centimeters into the wall rock.
7.4 Mineralization
Mineralized veins at Bolaitos consist of the classic banded and brecciated epithermal variety. Silver occurs
primarily in dark sulfide-rich bands within the veins, with little mineralization within the wall rocks. The
major metallic minerals reported include pyrite, argentite, electrum and ruby silver, as well as some galena
and sphalerite, generally deeper in the veins. Mineralization is generally associated with phyllic (sericite)
and silicification alteration which forms haloes around the mineralizing structures. The vein textures are
attributed to the brittle fracturing-healing cycle of the fault-hosted veins during and/or after faulting
(Figure 7-5).
Economic concentrations of precious metals are present in shoots distributed vertically and laterally
between non-mineralized segments of the veins. Overall, the style of mineralization is pinch-and-swell with
some flexures resulting in closures and others generating wide sigmoidal breccia zones.
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Bolaitos Project Geological Setting and Mineralization
Primary economic mineralization at Bolaitos is gold and silver. Bolaitos is postulated to be a low
sulphidation system with pyrite but no arsenopyrite.
The silver-rich veins of Bolaitos contain quartz, adularia, pyrite, acanthite, naumannite and native gold.
Native silver is widespread in small amounts. Much of the native silver is assumed to be supergene. Silver
sulfosalts (pyrargyrite and polybasite) are commonly found at depth.
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Bolaitos Project Deposit Types
8. DEPOSIT TYPES
The following description of the mineral deposit type associated with the Bolaitos mine property is
excerpted from the technical report prepared by Cameron (2012). HRC has reviewed the geologic data and
information available, and finds the descriptions and interpretations provided herein reasonably accurate
and suitable for use in this report.
The Guanajuato silver-gold district is characterized by classic, high grade silver-gold, epithermal vein
deposits with low sulfidation mineralization and adularia-sericite alteration. The Guanajuato veins are
typical of most epithermal silver-gold vein deposits in Mexico with respect to the volcanic or sedimentary
host rocks and the paragenesis and tenor of mineralization.
Epithermal systems form near the surface, usually in association with hot springs, and to depths on the
order of a few hundred meters. Hydrothermal processes are driven by remnant heat from volcanic activity.
Circulating thermal waters rising up through fissures eventually reach a level where the hydrostatic
pressure is low enough to allow boiling to occur. This can limit the vertical extent of the mineralization, as
the boiling and deposition of minerals is confined to a relatively narrow range of thermal and hydrostatic
conditions. In many cases, however, repeated healing and reopening of host structures can occur,
imparting cyclical vertical movement of the boiling zone and resulting in mineralization that spans a much
broader range of elevation.
As the mineralizing process is driven by filling of void spaces and fissures, mineralization geometry is
affected by the permeability and orientation of the host structures. Mineralization tends to favor dilatant
zones in areas where fractures branch or change orientation, which may be driven, in turn, by wall rock
competency and/or relative hardness of individual strata.
Low-sulfidation epithermal veins in Mexico typically have a well-defined, sub-horizontal ore horizon about
300 m to 500 m in vertical extent, where high grade ore shoots have been deposited by boiling
hydrothermal fluids. The minimum and maximum elevations of the mineralized horizons at the Bolaitos
mine have not yet been established precisely, but historic and current production spans an elevation range
from 1900 to 2300 m.
Low-sulfidation deposits are formed by the circulation of hydrothermal solutions that are near neutral in
pH, resulting in very little acidic alteration with the host rock units. The characteristic alteration
assemblages include illite, sericite and adularia that are typically hosted either by the veins themselves or in
the vein wall rocks. The hydrothermal fluid can travel along discrete fractures creating vein deposits, or it
can travel through permeable lithology such as poorly welded ignimbrite flows, where it may deposit its
load of precious metals in a disseminated fashion. In general, disseminated mineralization is found some
distance from the heat source. Figure 8-1 illustrates the spatial distribution of the alteration and veining
found in a hypothetical low-sulphidation hydrothermal system.
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Bolaitos Project Deposit Types
Figure 8-1 Alteration and Mineral Distributions within a Low Sulphidation Epithermal Vein System
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Bolaitos Project Exploration
9. EXPLORATION
During 2013, EDR completed 6,728 m of drilling in 47 underground diamond drill holes at the Bolaitos
Project. A total of 2,638 samples were collected and submitted for assays. EDR completed 15,337 m of
drilling in 51 surface diamond drill holes at the Bolaitos Project. A total of 4,379 samples were collected
and submitted for assays. EDR also conducted geological mapping, trenching, soil geochemical and
sampling programs in La Luz (San Antonio de los Tiros, La Paz and Plateros), Belen (Ericka and Ana) and
Bolaitos South (San Cayetano and Emma) areas. A total of 1,233 samples were collected and submitted for
assays.
In 2014, EDR did not conduct any underground exploration drilling at the Bolaitos Project, but completed
28,167 m of drilling in 87 surface diamond drill holes. A total of 7,949 samples were collected and
submitted for assays. EDR also conducted geological mapping and sampling programs in Bolaitos South
(San Antonio, Lourdes, Margaritas, La Cuesta, and Laura). A total of 685 samples were collected and
submitted for assays.
Bolaitos North (Bolaitos, San Ignacio, San Miguel & Realejo Veins);
Bolaitos South (San Antonio);
Ana Rosa and Belen (Erika, Ana, Edith and Perla).
These activities were mainly conducted to complete the delineation of the Bolaitos North structures, and
to investigate possible targets of interest in the South West part of Belen and in the Ana Rosa claim (located
at SW of la Luz town).
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Bolaitos Project Exploration
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Bolaitos Project Exploration
geologically defined traverse. The sample is chipped from the face with a mallet and chisel and captured by
a large canvas. The canvas is cleaned after each sample has been taken and a lithologic description is
recorded. The samples range from 1 to 2 meters long, depending on degree of mineralization and weigh
approximately 3 to 6 kilograms. Their location is recorded by a hand-held GPS unit.
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Bolaitos Project Exploration
Au Ag Ageq
Area Sample ID Width (m) Structure Cu (%) Pb (%) Zn (%)
(g/t)* (g/t)* (g/t)**
Bolaitos North BOL-1188 0.35 BV en cata al sur de Socv. Burgos 0.17 19 30.9 0.0005 <0.0002 0.0005
Bolaitos North BOL-1182 0.3 Vn a=90cm N5W/45SW desprendimiento al bajo 0.18 23 35.6 0.005 0.0002 0.0029
Bolaitos North BOL-1186 0.45 0.24 24 40.8 0.006 0.0003 0.005
Bolaitos North BOL-1183 0.3 Vn desprend. al bajo 0.26 23 41.2 0.0089 0.0002 0.0054
Bolaitos North BOL-1046 0.25 Vn al bajo de BV 0.48 9 42.6 0.0035 <0.0002 0.0059
Bolaitos North BOL-1191 0.5 0.2 36 50 0.0012 <0.0002 0.0015
Bolaitos North BOL-1174 0.3 BV en cata al sur de Socv. Burgos a=2.25m N25W/73NE 0.58 17 57.6 0.002 <0.0002 0.0017
Bolaitos North BOL-1047 0.35 Vn al bajo de BV 0.12 65 73.4 0.002 <0.0002 0.0024
Bolaitos North BOL-1200 3*2 Socavn sin nombre limite N de Lote Bolaitos 1.06 8 82.2 0.0031 0.0002 0.0029
Bolaitos North BOL-1173 0.2 1.13 14 93.1 0.0034 0.0002 0.0039
Bolaitos North BOL-1193 0.3 0.2 81 95 0.0008 0.0002 0.0012
Bolaitos North BOL-1192 0.2 Vl a=20cm N20E/86SE 0.35 170 194.5 0.0008 0.0003 0.0011
Bolaitos North BOL-1180 1*1 Flotados en cata aterrada 1.27 146 234.9 0.0002 <0.0002 0.001
Bolaitos North BOL-1195 0.2 BV en vereda fuera de lote 0.5 226 261 0.0006 0.0002 0.0006
Bolaitos North BOL-1171 0.3 Vn a=70cm N20W/80NE desprendimiento de BV 0.61 247 289.7 0.0018 0.0002 0.0014
Bolaitos North BOL-1194 0.2 BV a=40cm N10W/78NE en vereda fuera de lote 0.64 308 352.8 0.0016 0.0003 0.002
Bolaitos North BOL-1161 2*2 Mtra afuera de Socv. Burgos 0.9 465 528 0.0005 <0.0002 0.0019
Bolaitos South BOL-656 0.2 Vt 0.43 1 31.1 0.0019 0.0006 0.001
Bolaitos South BOL-655 0.2 Vt 0.1 37 44 0.0024 0.0004 0.0019
Bolaitos South BOL-652 0.25 Vl 0.43 123 153.1 0.0037 0.0006 0.0025
Bolaitos South BOL-654 0 FLOTADOS 3.76 186 449.2 0.0014 0.0007 0.0016
Bolaitos/Mina Grande BOL-1392 0.4 Vn 0.19 53 66.3 0.0003 0.0002 0.0002
Bolaitos/Mina Grande BOL-1394 0.55 Vn 0.26 50 68.2 0.0002 <0.0002 0.0004
Bolaitos/Mina Grande BOL-1388 0.4 Vn-BAND 0.23 65 81.1 0.0001 <0.0002 <0.0002
Bolaitos/Mina Grande BOL-1378 0.5 Vn-Bx 0.36 72 97.2 0.0002 <0.0002 0.0004
Bolaitos/Mina Grande BOL-1466 0.4 Vl 0.21 85 99.7 0.001 <0.0002 0.003
Bolaitos/Mina Grande BOL-1379 0.65 Vn 0.21 103 117.7 0.0002 <0.0002 0.0002
Bolaitos/Mina Grande BOL-1417 0.45 Vn-Bx 0.24 104 120.8 0.0012 <0.0002 0.0017
Bolaitos/Mina Grande BOL-1383 0.35 Vn-BAND 0.39 102 129.3 0.0001 <0.0002 0.0003
Bolaitos/Mina Grande BOL-1377 0.3 Bx 0.81 81 137.7 0.0007 0.0004 0.0017
Bolaitos/Mina Grande BOL-1410 0.25 Vn-Bx 0.025 137 138.75 0.0018 0.0008 0.0025
Bolaitos/Mina Grande BOL-1382 0.8 Vn-BAND-Bx 1.01 73 143.7 0.0005 <0.0002 0.0014
Bolaitos/Mina Grande BOL-1393 0.3 Vn-BAND 0.14 178 187.8 0.0003 0.0002 0.0003
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Au Ag Ageq
Area Sample ID Width (m) Structure Cu (%) Pb (%) Zn (%)
(g/t)* (g/t)* (g/t)**
Bolaitos/Mina Grande BOL-1449 0.55 Vl 0.51 179 214.7 0.0012 <0.0002 0.0015
Bolaitos/Mina Grande BOL-1375 0 MAT. REZAGA EN Vn 1.41 125 223.7 0.0002 <0.0002 0.0006
Bolaitos/Mina Grande BOL-1434 0.55 Vn-Bx 0.3 248 269 0.0015 0.0004 0.0013
Bolaitos/Mina Grande BOL-1475 0.55 Vn-Bx 0.32 247 269.4 0.001 <0.0002 0.0008
Bolaitos/Mina Grande BOL-1451 0.35 Vn-Bx 2.84 78 276.8 0.0004 <0.0002 0.0004
Bolaitos/Mina Grande BOL-1476 0.45 Vn-Bx 0.53 244 281.1 0.0007 <0.0002 0.0016
Bolaitos/Mina Grande BOL-1483 0.6 Vl 3.35 153 387.5 0.0009 <0.0002 0.0004
Bolaitos/Mina Grande BOL-1484 0.6 Vn-BAND 5 57 407 0.0004 <0.0002 0.0003
Bolaitos/Mina Grande BOL-1408 0.35 Vn 0.26 452 470.2 0.0005 0.0002 0.0018
Bolaitos/Mina Grande BOL-1480 0.35 Vn-Bx 4.37 177 482.9 0.0024 <0.0002 0.001
Bolaitos/Mina Grande BOL-1387 0.3 Vn-Bx 2.2 832 986 0.0005 0.0006 0.0016
Dam Tunnel BOL-1106 0.25 Vl a=20cm N26E/44SE 0.25 30 47.5 0.0005 <0.0002 0.0017
Dam Tunnel BOL-1098 0.25 Vl a=8-20cm N36E/72SE 0.17 85 96.9 0.0033 <0.0002 0.0027
Edith BOL-1216 0.5 Bx 0.45 27 58.5 0.001 <0.0002 0.0036
Edith BOL-1217 0.2 Vn 0.6 39 81 0.0004 <0.0002 0.002
Edith BOL-1218 0.45 Vn 0.63 47 91.1 0.0005 <0.0002 0.0011
Edith BOL-1220 0.45 Vn 1.2 201 285 0.0018 <0.0002 0.0031
Perla BOL-1239 0.3 AND 0.26 13 31.2 0.0041 <0.0002 0.0058
Perla BOL-1245 0.45 MATERIAL FALLA 0.25 19 36.5 0.0032 0.0002 0.0052
Perla BOL-1235 0 FLOTADOS 0.31 17 38.7 0.0002 <0.0002 0.0006
Perla BOL-1246 0.05 Vl 0.21 24 38.7 0.0007 <0.0002 0.0007
Perla BOL-1251-A 0.1 Vt 0.21 31 45.7 0.002 <0.0002 0.0049
Perla BOL-1241 0 TERRERO 0.46 26 58.2 0.0004 <0.0002 0.0008
Perla BOL-1231 0.08 SILICIF 1.13 5 84.1 0.0016 0.0003 0.0059
Perla BOL-1232 0.15 Vt 1.03 48 120.1 0.0004 <0.0002 0.0007
Perla BOL-1237 0.2 Vn-BAND 0.86 80 140.2 0.0014 <0.0002 0.0023
Perla BOL-1234 0 FLOTADOS 1.6 42 154 0.0004 <0.0002 0.0015
Perla BOL-1240 0.4 Vn-BAND-Bx 0.73 117 168.1 0.0014 0.0003 0.0019
Perla BOL-1247 0.65 MATERIAL FALLA 0.67 138 184.9 0.0043 0.0003 0.0033
Perla BOL-1244 0.15 Vt 2.07 141 285.9 0.0005 <0.0002 0.001
Perla BOL-1238 0 TERRERO 5.53 136 523.1 0.0009 0.0002 0.0031
Perla BOL-1230 0 TERRERO 3.56 294 543.2 0.0006 0.0002 0.0008
Perla BOL-1242 0 TERRERO 8.57 312 911.9 0.0019 <0.0002 0.0016
Perla BOL-1236 0.3 Vn-BAND 25.9 202 2015 0.0043 0.0002 0.0039
Raices-San Bernab BOL-904 0.4 Vn-BAND-Bx 0.26 20 38.2 0.0031 0.0003 0.0022
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Au Ag Ageq
Area Sample ID Width (m) Structure Cu (%) Pb (%) Zn (%)
(g/t)* (g/t)* (g/t)**
Raices-San Bernab BOL-911 0.25 Vl 0.45 10 41.5 0.0035 <0.0002 0.0019
Raices-San Bernab BOL-704 0.25 Vl N23E/70NW a=0.09m 0.025 48 49.75 0.0015 0.0002 0.003
Raices-San Bernab BOL-702 0.2 Races Vn N4W/82SW a=0.20m 0.025 54 55.75 0.001 0.0002 0.0026
Raices-San Bernab BOL-800 0.9 AND 0.74 4 55.8 0.0009 0.0003 0.0049
Raices-San Bernab BOL-703 0.2 0.025 56 57.75 0.0019 0.0002 0.0065
Raices-San Bernab BOL-727 0.2 Vl a=0.03m N6E/58NW 0.93 2 67.1 0.0013 <0.0002 0.0012
Raices-San Bernab BOL-909 0.4 AND C/Vl 0.83 10 68.1 0.0071 <0.0002 0.0075
Raices-San Bernab BOL-738 0.3 Vn Soledad A=30cm 0.62 26 69.4 0.0018 <0.0002 0.0011
Raices-San Bernab BOL-913 0.4 Vn 0.93 35 100.1 0.0008 <0.0002 0.0014
Raices-San Bernab BOL-739 0.25 N15W/60SW 0.73 59 110.1 0.0105 0.0002 0.004
Raices-San Bernab BOL-735 0.2 Vl traza races vn a=0.15m N24E/71NW 1.45 24 125.5 0.0046 0.0003 0.0024
Raices-San Bernab BOL-901 0.6 AND 2.02 7 148.4 0.0011 0.0004 0.0079
Raices-San Bernab BOL-914 0 FLOTADOS 0.57 116 155.9 0.0012 <0.0002 0.0012
Raices-San Bernab BOL-798 0.4 Vn 1.17 80 161.9 0.0023 0.0003 0.0029
Raices-San Bernab BOL-908 TERRERO 2.93 10 215.1 0.0006 0.0002 0.0006
Raices-San Bernab BOL-715 0.3 Vl a=0.30m N15E/69NW 0.23 231 247.1 0.0029 0.0002 0.0038
Raices-San Bernab BOL-912 0.4 Vn 2.93 54 259.1 0.0024 0.0002 0.0019
Raices-San Bernab BOL-714 0.8 0.57 227 266.9 0.0046 <0.0002 0.0052
Raices-San Bernab BOL-622 0.2 Vl a=8cm 3.85 25 294.5 0.0093 0.0002 0.0048
Raices-San Bernab BOL-623 0.2 N26W/73SW 5.18 18 380.6 0.006 <0.0002 0.0037
Realejo BOL-813 0.2 Vl a03-9cm N10W/71SW 0.13 21 30.1 0.0016 <0.0002 0.0022
Realejo BOL-881 0.25 Vl a=70cm N30E/56SE 0.06 26 30.2 0.0002 <0.0002 0.0005
Realejo BOL-963 0.5 Vl Bx a=10cm N17W/49NE 0.07 29 33.9 0.0033 <0.0002 0.003
Realejo BOL-858 0.25 Vn a=20cm N58W/53NE 0.025 35 36.75 0.0013 <0.0002 0.0011
Realejo BOL-877 0.15 Vl a=8cm N74W/55NE 0.11 32 39.7 0.0024 0.0003 0.0022
Realejo BOL-975 0.2 Vl a=8-10cm N52W/44NE 0.14 34 43.8 0.0038 0.0002 0.0031
Realejo BOL-970 0.2 Vl a=5-10cm N27W/63NE 0.2 34 48 0.0015 0.0002 0.0017
Realejo BOL-997 0.3 0.1 54 61 0.0012 <0.0002 0.0007
Realejo BOL-999 0.2 0.39 39 66.3 0.0008 <0.0002 0.0007
Realejo BOL-863 0.2 Vl a=20cm N52W/49NE 0.14 57 66.8 0.0009 <0.0002 0.0011
Realejo BOL-874 0.25 Vl a=20cm N14W/53NE 0.07 67 71.9 0.0004 <0.0002 0.0008
Realejo BOL-960 0.2 Bx al bajo de Vl, a=2-5cm N10W/74NE 0.07 69 73.9 0.0029 0.0003 0.0036
Realejo BOL-851 0.2 Vl a=2-5cm N16W/89NE 0.14 65 74.8 0.005 <0.0002 0.0013
Realejo BOL-978 0.25 Vl a=4-8cm N75W/42NE 0.21 70 84.7 0.0019 <0.0002 0.0014
Realejo BOL-952 0.2 Bx al bajo de Vl a=2-8cm N42W/79NE 0.17 73 84.9 0.0026 <0.0002 0.0033
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Au Ag Ageq
Area Sample ID Width (m) Structure Cu (%) Pb (%) Zn (%)
(g/t)* (g/t)* (g/t)**
Realejo BOL-894 0.2 0.18 77 89.6 0.0011 0.0002 0.0021
Realejo BOL-807 0.2 Vl a=13cm N20W/68SW REALEJO VN En talud presa de jales 0.18 103 115.6 0.0011 <0.0002 0.0016
Realejo BOL-885 0.2 Vl a=20cm N84W/60NE 0.19 129 142.3 0.0006 <0.0002 0.0012
Realejo BOL-998 0.2 0.38 125 151.6 0.0007 <0.0002 0.0004
Realejo BOL-985 0.2 Vl a=10-15cm N26W/50NE 0.14 143 152.8 0.0007 <0.0002 0.0008
Realejo BOL-808 1 0.31 148 169.7 0.0015 <0.0002 0.0022
Realejo BOL-996 0.2 0.88 209 270.6 0.0008 0.0002 0.0008
Realejo BOL-995 0.2 Vn a=110cm N05E/80NW 4.12 209 497.4 0.0012 0.0002 0.001
Rio Dike BOL-1331 1.7 AND 0.13 33 42.1 0.0007 0.0004 0.0042
Rio Dike BOL-1352 1.5 DIQUE 0.27 24 42.9 0.0003 0.0005 0.0027
Rio Dike BOL-1332 1 AND 0.1 46 53 0.0004 0.0003 0.006
Rio Dike BOL-1325 0.75 DIQUE 0.025 79 80.75 0.0017 0.0004 0.0027
Rio Dike BOL-1326 1.2 Vn 0.025 170 171.75 0.0017 0.0004 0.0037
Rio Dike BOL-1330 0.8 AND 0.6 445 487 0.0006 0.0004 0.0022
San Ignacio BOL-1201 0.4 Vn-Bx 0.23 60 76.1 0.0006 0.0005 0.0026
San Ignacio BOL-602 0.35 0.11 71 78.7 0.0042 0.0003 0.0028
San Ignacio BOL-795 0.35 Vn 0.36 55 80.2 0.0011 0.0002 0.0011
San Ignacio BOL-780 0.35 AND 0.27 63 81.9 0.0019 0.0005 0.0047
San Ignacio BOL-796 0.3 Vn 0.3 62 83 0.0017 0.0002 0.0013
San Ignacio BOL-784 1.2 Vn 0.51 53 88.7 0.0005 0.0002 0.0005
San Ignacio BOL-782 0.5 Vl 0.23 75 91.1 0.0078 0.0006 0.003
San Ignacio BOL-670 0.3 Vn 0.18 90 102.6 0.001 0.0004 0.0013
San Ignacio BOL-675 0.2 Vn 0.23 100 116.1 0.0017 0.0005 0.0016
San Ignacio BOL-781 1.1 FLOTADOS 0.63 77 121.1 0.0006 0.0002 0.0009
San Ignacio BOL-1207 0.2 Vn 0.3 113 134 0.0003 0.0002 0.0008
San Ignacio BOL-682 0 FLOTADOS 0.025 138 139.75 0.0013 0.0002 0.0015
San Ignacio BOL-608 0.2 Vn San Bernabe a=35cm 0.25 127 144.5 0.0038 0.0022 0.0022
San Ignacio BOL-786 0.5 AND 0.37 141 166.9 0.0036 0.0004 0.0051
San Ignacio BOL-785 0.9 Vn 1.79 42 167.3 0.0005 <0.0002 0.0008
San Ignacio BOL-669 1.1 SILICIF 0.14 158 167.8 0.0008 0.0005 0.001
San Ignacio BOL-671 0.25 Vn 0.53 138 175.1 0.0014 0.0005 0.0013
San Ignacio BOL-674 0.5 Bx 0.26 201 219.2 0.0008 0.0006 0.001
San Ignacio BOL-793 0.55 AND 1.25 152 239.5 0.0022 0.0004 0.0059
San Ignacio BOL-603 0.2 Vn San Bernabe a=135cm 2.78 51 245.6 0.0012 <0.0002 0.0009
San Ignacio BOL-605 0.4 3.2 39 263 0.0013 0.0002 0.0006
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Bolaitos Project Exploration
Au Ag Ageq
Area Sample ID Width (m) Structure Cu (%) Pb (%) Zn (%)
(g/t)* (g/t)* (g/t)**
San Ignacio BOL-1205 0.3 Vn-Bx 1.72 165 285.4 0.0004 0.0003 0.001
San Ignacio BOL-606 0.2 3.82 111 378.4 0.0008 <0.0002 0.0004
San Ignacio BOL-1203 0.6 Vn-Bx 2.59 331 512.3 0.0003 0.0003 0.0005
San Ignacio BOL-665 1.1 Vn 0.27 528 546.9 0.0044 0.0006 0.0029
San Ignacio BOL-1206 0.25 Bx 1.54 1225 1332.8 0.0064 0.001 0.0048
San Miguel BOL-769 0.3 Bx 0.25 39 56.5 0.004 0.0003 0.0034
San Miguel BOL-767 0.2 AND 0.1 54 61 0.0052 0.0002 0.0055
San Miguel BOL-942 0.2 Vt-Bx 0.46 36 68.2 0.0054 0.0002 0.0024
San Miguel BOL-940 0.45 Vl 0.27 53 71.9 0.0057 <0.0002 0.0048
San Miguel BOL-788 0.3 Vl-BAND 0.66 30 76.2 0.0038 0.0005 0.003
San Miguel BOL-929 0.5 Vl 1.03 6 78.1 0.005 0.0005 0.004
San Miguel BOL-936 0.4 Vn 0.74 28 79.8 0.0028 0.0002 0.0018
San Miguel BOL-947 0.6 Vn-Bx 1.05 14 87.5 0.0017 0.0004 0.0014
San Miguel BOL-772 0.35 Bx 0.92 24 88.4 0.0018 0.0003 0.0014
San Miguel BOL-934 0.5 CABALLO AND 0.53 56 93.1 0.0014 0.0004 0.0019
San Miguel BOL-695 0.7 Vn 1.18 14 96.6 0.0009 0.0002 0.0008
San Miguel BOL-778 0.3 Vl 0.65 52 97.5 0.0072 0.0004 0.0047
San Miguel BOL-775 1 Bx 1.08 22 97.6 0.0023 0.0003 0.0018
San Miguel BOL-774 1.5 Bx 1.1 25 102 0.0028 0.0005 0.0022
San Miguel BOL-776 1.1 Bx 0.83 46 104.1 0.0029 0.0007 0.0023
San Miguel BOL-941 0.25 Vt 1.45 11 112.5 0.003 0.0003 0.0038
San Miguel BOL-700 0.35 Bx 0.91 64 127.7 0.0057 0.0003 0.0046
San Miguel BOL-773 0.35 Bx-Vl 1.62 33 146.4 0.0015 0.0003 0.0015
San Miguel BOL-692 0.3 Vl 2.27 12 170.9 0.0019 0.001 0.003
San Miguel BOL-697 0.3 Vn 2.32 10 172.4 0.0021 0.0002 0.0017
San Miguel BOL-752 0.25 Vl 1.25 85 172.5 0.0067 0.0003 0.0037
San Miguel BOL-938 0.4 Vl 0.9 110 173 0.0063 <0.0002 0.0031
San Miguel BOL-933 0.6 Vl 2.48 8 181.6 0.0036 <0.0002 0.0046
San Miguel BOL-696 0.35 Vl 2.41 16 184.7 0.0012 <0.0002 0.0007
San Miguel BOL-768 0.2 Vt 0.47 161 193.9 0.0014 0.0003 0.0014
San Miguel BOL-777 1.2 Vn 1.56 105 214.2 0.0035 0.0006 0.0024
San Miguel BOL-943 0.4 Vn-Bx 2.71 57 246.7 0.0019 0.0004 0.0038
San Miguel BOL-766 0.3 Vl 0.98 332 400.6 0.0014 0.0006 0.0026
San Miguel BOL-694 0.4 Vn 8.95 117 743.5 0.0019 0.0005 0.0018
Soledad BOL-627 0.3 0.13 31 40.1 0.0068 <0.0002 0.0059
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Bolaitos Project Exploration
Au Ag Ageq
Area Sample ID Width (m) Structure Cu (%) Pb (%) Zn (%)
(g/t)* (g/t)* (g/t)**
Soledad BOL-745 0.3 Vl a=0.01-0.04m NF/63NE 0.85 1 60.5 0.0023 0.0002 0.0057
Soledad BOL-801 0.25 Vl a=0.06m N65W/55NE 1.58 6 116.6 0.0026 <0.0002 0.0022
Soledad BOL-749 0.2 Vl a=0.02 a 0.04m N9W/75NE 1.66 6 122.2 0.003 0.0002 0.0045
Soledad BOL-631 0.2 Vl alto de posible Soledad Vein a=20 N32E/44SW 1.61 38 150.7 0.0006 <0.0002 0.0004
Soledad BOL-628 0.2 Posible Vn Soledad a=5-10cm N22W/82NE 0.63 254 298.1 0.0047 0.0005 0.0055
South-Central Realejo BOL-1020 0.3 Vl a=30cm N42E/78SE 0.62 6 49.4 0.0008 <0.0002 0.0011
South-Central Realejo BOL-639 0.2 RODADOS 0.13 53 62.1 0.0008 <0.0002 0.0005
South-Central Realejo BOL-636 0.25 Realejo Vein a=20-25cm N36W/78SW 1.82 30 157.4 0.0005 <0.0002 0.0004
* Below Detection Limit (BDL) results have been included as 1/2 the detection limit
** AgEq calculated using a 70:1 gold to silver ratio
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Bolaitos Project Drilling
10. DRILLING
Diamond drilling at the Bolaitos Project is conducted under two general modes of operation: one by the
exploration staff (surface exploration drilling) and the other by the mine staff (production and
underground exploration drilling). Production drilling is predominantly concerned with definition and
extension of the known mineralized zones in order to guide development and mining. Exploration drilling
is conducted further from the active mining area with the goal of expanding the resource base. Drilling
results from both programs were used in the mineral resource and mineral reserve estimates presented in
this report. To date, all drilling completed at the El Cubo mine has been diamond core.
Underground drillholes are typically drilled from the hanging wall, and are ideally drilled perpendicular to
structures, but oblique intersection is required in some instances due to limitations of the drill station.
Underground positive angled holes (up holes) are generally drilled from the footwall using the same
criteria. All holes are designed to pass through the target and into the hanging or footwalls. Both surface
and underground drillholes are typically HQ to NQ in size.
On the drill site, the drill set-up is surveyed for azimuth, inclination and collar coordinates, with the drilling
subject to daily scrutiny and coordination by EDR geologists. Since 2010, surface holes are surveyed using a
Reflex multi-shot down-hole survey instrument normally at 50 m intervals from the bottom of the hole
back up to the collar. At underground drill stations, azimuth orientation lines are surveyed in prior to
drilling. Inclination of underground holes is collected using the Reflex EX-Shot survey device prior to
starting drilling.
The survey data obtained from the drillholes are transferred to databases in Vulcan and AutoCAD, and
are corrected for local magnetic declination, as necessary. Information for each drillhole is stored in
separate folders.
Drill core is collected daily and is transported to the core logging facility under EDR supervision. The core
storage facilities at El Cubo are well protected by high level security fences, and are under 24-hour
surveillance by security personnel to minimize any possibility of tampering with the dill cores.
When assay results are received from the laboratory, they are merged into an Excel spreadsheet for
importation and interpretation in AutoCAD software. The starting and ending point of each vein and/or
vein/vein breccia intercept is determined from a combination of geology notes in the logs and assay results.
Using approximate vein and drillhole orientation information a horizontal width is calculated for the
intercept to be used as part of a Vertical Longitudinal Projection (VLP).
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Bolaitos Project Drilling
The center point of the intercept, horizontal width, and gold and silver assay values are plotted on VLPs of
each vein. These are used to guide further drilling, interpret mineralization shoots, and as the basis of
polygonal resource estimation.
Table 10-1 Bolaitos Project Surface & Underground Exploration Drilling Activities in 2015
Surface diamond drilling was conducted by Layne de Mexico S.A. de C.V. (Layne), a wholly-owned
subsidiary of the USA-base Layne Christensen Company (Layne Christensen). Neither Layne nor Layne
Christensen holds an interest in EDR and both are independent of the company.
Underground diamond drilling was performed by an in-house drill capable of drilling NQ and HQ core
(VERSA Kmb-4 drill).
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Bolaitos Project Drilling
Drillholes in the San Ignacio and San Miguel targets were designed to test for mineralization around the old
workings located at footwall of the Bolaitos vein. The primary objective was to identify mineralization
between the elevation of 2,000 to 2,100 masl. Historically this horizon has represented the higher grade
mineralization of the Bolaitos, Daniela, Karina and Lucero veins.
The northern extent of the Bolaitos vein was targeted with 9 drillholes. Seven of the nine holes completed
in the area are located between the portals of the Burgos Adit and the Las Palmas mines.
In 2015, EDR had completed a total of 4,557 m in 18 surface holes, drilled over the San Ignacio, San Miguel,
and Bolaitos veins at the Bolaitos North area (Figure 10-1). The summary of these programs is shown in
Tables 10-2 through 10-4.
Table 10-2 2015 Summary of San Ignacio Surface Diamond Drilling Program
HOLE AZIMUTH DIP DIAMETER TOTAL DEPTH (m) START DATE FINISH DATE
Table 10-3 2015 Summary of San Miguel Surface Diamond Drilling Program
HOLE AZIMUTH DIP DIAMETER TOTAL DEPTH (m) START DATE FINISH DATE
MG-01 225 -57 HQ 168.25 05/07/2015 09/07/2015
MG-02 263 -52 HQ 231.75 09/07/2015 14/07/2015
MG-03 270 -66 HQ 214.60 14/07/2015 18/07/2015
MG-04 186 -49 HQ 185.40 18/07/2015 22/07/2015
MG-05 241 -62 HQ 205.50 23/07/2014 27/07/2014
Total 1,005.50
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Bolaitos Project Drilling
Table 10-4 2015 Summary of Bolaitos North Surface Diamond Drilling Program
HOLE AZIMUTH DIP DIAMETER TOTAL DEPTH (m) START DATE FINISH DATE
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Bolaitos Project Drilling
Figure 10-1 Surface Map showing completed drill holes in the Bolaitos North Area.
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Endeavour Silver Corp. NI 43-101 Technical Report
Bolaitos Project Drilling
Significant intervals of gold mineralization were encountered in the San Miguel drilling program. The San
Ignacio drilling program intersected mineralization more typical of the Bolaitos system with silver and
gold. The intersections over the San Ignacio vein indicate the mineralization may not extend below an
elevation of 2,000 masl.
The Bolaitos vein drilling results indicate that the mineralization in the north is erratic and isolated. Zones
containing higher grade intercepts are assumed to be limited to 100 m or less of strike length.
Drilling results are summarized in Table 10-5, Table 10-6, and Table 10-7. The San Ignacio, San Miguel, and
Bolaitos veins intercepts are plotted on longitudinal sections in Figure 10-2, Figure 10-3, and Figure 10-4.
Table 10-5 Surface Drill Hole Assay Summary for intercepts in the San Ignacio area.
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Bolaitos Project Drilling
Table 10-6 Surface Drill Hole Assay Summary for intercepts in the San Miguel area.
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Bolaitos Project Drilling
Table 10-7 Surface Drill Hole Assay Summary for intercepts in the Bolaitos area.
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Figure 10-2 Longitudinal Section (Looking NE) showing intersection points on San Ignacio Vein
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Figure 10-3 Longitudinal Section (Looking NE) showing intersection points on San Miguel Vein
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Figure 10-4 Longitudinal Section (Looking East) showing intersection points on Bolaitos Vein
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The drilling in the Reyes area was completed with the objective of identifying mineralization near areas of
existing development in the Reyes Adit. Two drillholes were completed in this area, one to the south of the
Estrella Shaft and the other in proximity of the historic holes RV-9, RV-10, and RV-15.
The Cuesta vein is located at the South West part of the El Puertecito claim and is parallel to the La Joya
and El Puertecito systems. The mapping and sampling program indicated mineralization approximately
700 m long, with elevated silver and gold values. Two holes were drilled in the north part of the La Cuesta
vein to test the extent of mineralization at depth.
In total 1,355 m of drillhole core was completed in 4 holes in the Bolaitos South area. Tables 10-8 and 10-9
summarize the information of these holes.
HOLE AZIMUTH DIP DIAMETER TOTAL DEPTH (m) START DATE FINISH DATE
Table 10-9 2015 Summary of La Cuesta North Surface Diamond Drilling Program
HOLE AZIMUTH DIP DIAMETER TOTAL DEPTH (m) START DATE FINISH DATE
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Figure 10-5 Surface Map showing completed drill holes in the Bolaitos South Area.
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The results of the Reyes vein in holes RV-16 and RV-17 indicate that the high grade zones towards south
and below an elevation of 2,100 masl represent thinner portions of the structure. The dimensions and
lower than expected grade, for the moment, to not warrant any new development, however, the results are
significant enough to warrant additional exploration work within the untested strike length of 200 m.
The results are summarized in Tables 10-10 and 10-11. The Reyes and La Cuesta veins intercepts are shown
on the longitudinal sections in Figure 10-6 and Figure 10-7.
Table 10-10 Surface Drill Hole Assay Summary for intercepts in the Reyes area.
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Table 10-11 Surface Drill Hole Assay Summary for intercepts in the La Cuesta North area.
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Figure 10-6 Longitudinal Section (Looking NE) showing intersection points on Reyes Vein
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Figure 10-7 Longitudinal Section (Looking NE) showing intersection points on La Cuesta North Vein
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HOLE AZIMUTH DIP DIAMETER TOTAL DEPTH (m) START DATE FINISH DATE
SXX-01 65 -45 HQ 327.50 29/10/2015 05/11/2015
SXX-02 96 -45 HQ 490.50 05/11/2015 16/11/2015
SXX-03 228 -45 HQ 249.40 17/11/2015 21/11/2015
Total 1,067.40
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Figure 10-8 Surface Map showing completed drill holes in the Siglo XX Area.
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The vein intersections in holes SXX-02 and SXX-03 resulted in marginal values that indicate that the gold
and silver are present below an elevation of 1,900 masl. This is similar to the depth of mineralization
referenced in the Veta Madre system. The results of the drilling program indicate that possible extensions
of mineralization may be found to the north and at depth.
The Siglo XX vein intercepts are summarized in Table 10-13 and the intercepts are plotted on the
longitudinal section in Figure 10-9.
Table 10-13 Surface Drill Hole Assay Summary for intercepts in the Siglo XX area.
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Figure 10-9 Longitudinal Section (Looking NE) showing intersection points on Siglo XX Vein
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HOLE AZIMUTH DIP DIAMETER TOTAL DEPTH (m) START DATE FINISH DATE
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Figure 10-10 Map showing completed drill holes in the La Joya Area.
Drilling results are summarized in Table 10-15 and the La Joya vein intercepts are plotted on the
longitudinal section in Figure 10-11.
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Table 10-15 Underground Drill Hole Assay Summary for intercepts in the La Joya area.
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Figure 10-11 Longitudinal Section (Looking NE) showing intersection points on La Joya Vein
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Table 10-16 2015 Summary of Daniela Footwall Underground Diamond Drilling Program
HOLE AZIMUTH DIP DIAMETER TOTAL DEPTH (m) START DATE FINISH DATE
DNU-01 36 -48 NQ 326.40 12/03/2015 23/03/2015
DNU-02A 52 -56 NQ 26.75 24/03/2015 25/03/2015
DNU-02 53 -59 NQ 346.00 26/03/2015 07/04/2015
Total 699.15
HOLE AZIMUTH DIP DIAMETER TOTAL DEPTH (m) START DATE FINISH DATE
GAU-01 240 -3 NQ 151.90 17/04/2015 21/04/2015
GAU-02A 180 (+) 6 NQ 4.75 22/04/2015 22/04/2015
GAU-02 180 (+) 6 NQ 106.75 22/04/2015 23/04/2015
GAU-03 216 0 NQ 110.10 24/04/2015 28/04/2015
GAU-04 226 (+) 22 NQ 182.05 28/04/2015 08/05/2015
Total 555.55
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Figure 10-12 Map showing completed drill holes in the Daniela Fw & Gabriela Area.
Drilling results are summarized in Tables 10-18 and 10-19 and the Gabriela vein intercepts are plotted on
the longitudinal section in Figure 10-13.
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Table 10-18 Underground Drill Hole Assay Summary for intercepts in the Daniela Fw area.
Table 10-19 Underground Drill Hole Assay Summary for intercepts in the Gabriela area.
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Figure 10-13 Longitudinal Section (Looking NE) showing intersection points on Gabriela Vein
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11.1 Methods
The entire chip sample is divided into a number of discrete samples based on the geology (lithology). The
simplest configuration is a single vein where the chip sample would be divided based on one sample of the
wall rock on each side of the vein, and one sample of the vein. In more complex configurations, if there is
more than one vein present, or it is divided by waste rock, then each of the vein sections is sampled
separately. The chip samples are cut approximately 10 cm wide and 2 cm deep using a hammer and chisel.
The rock chips are collected in a net, placed on a canvas, and any fragments larger than 2.5 cm are broken
with a hammer. The maximum sample length is generally 1.5 m and minimum sample length is generally
0.2 m, though a few samples are taken over as narrow a width as 0.1 m.
The samples are sealed in plastic bags with a string and sent to the laboratory at Bolaitos. Samples which
tend to be large, representing long sample intervals, can be too large for the bags provided and are reduced
in size at the sample site to 1-2kg by quartering. Care is taken to collect all of the fines for the selected
quarters. The samples are sealed in plastic bags and transported to the geology storage facility on surface.
From there the samples are taken to the laboratory at the Bolaitos mine site by contracted transporter.
Sample locations are plotted on stope plans using CAD software. The sample numbers and location data are
recorded in a spreadsheet database. Upon receipt of assays, technicians and geologists produce reports used
for day-to-day monitoring and grade control.
Regardless of which program the core comes from, the process is the same. Core from diamond drilling is
placed in boxes which are sealed shut at the drill site. EDR personnel transport the core to the core facility.
Sample handling at the core facility follows a standard general procedure, during which depth markers are
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checked and confirmed; the outside of the boxes are labeled with interval information; core is washed and
photographed; and the recovery and modified rock quality designation (RQD) are logged for each drillhole.
All of EDRs surface and underground exploration drillholes are processed at the exploration core facility.
A cutting line is drawn on the core with a colored pencil, and sample tags are stapled in the boxes or
denoted by writing the sample number with a felt tip pen.
Upon arrival at the ALS preparation facility, all of the samples are logged into the laboratorys tracking
system (LOG-22). Then the entire sample is weighed, dried if necessary, and fine crushed to better than
70% passing 2 mm (-10 mesh). The sample is then split through a riffle splitter and a 250 g split is then
taken and pulverized to 85% passing 75 microns (-200 mesh).
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ALS is an independent analytical laboratory company which services the mining industry around the world.
ALS is also an ISO-certified laboratory that employs a rigorous quality control system in its laboratory
methodology as well as a system of analytical blanks, standards and duplicates. Details of its accreditation,
analytical procedures and QA/QC program can be found at http://www.alsglobal.com.
In 2015, the average turn-around time required for analyses was approximately 2 weeks.
Field duplicate samples are inserted at the frequency of about 1 in 20 chip lines. The last sample taken is a
duplicate sample. The sample interval to be duplicated is chosen at random from one of the vein intervals.
Waste duplicates are not collected. The sample is collected from a point approximately 10cm above the
original sample. Duplicate samples are sent with the rest of the samples from the chip line.
Maximum-minimum scatter plots for duplicate samples are shown in Figure 11-1 through Figure 11-6. In
general, results of the duplicate re-assays indicate a good correlation for silver and moderate to poor
correlation for gold. Acceptable failure rate for pulp duplicates is 10%. Silver pulps show a 6% failure rate
while gold shows a 42% failure rate.
Acceptable failure rate for reject duplicates is 20%. Silver rejects show a 12% failure rate while gold shows
a 33% failure rate.
Finally, failure rate for mine duplicates is 30%. Silver duplicates show a 26% failure rate while gold shows
a 45% failure rate.
Silver pairs with a mean value of 10x the detection limit were excluded. Gold pairs with a mean value of 15x
the detection limit were excluded. The higher gold failure rate may be caused by low precision near the
origin. Eliminating pairs that are close to detection will reduce the failure rate. Overall the results are
acceptable but could be improved.
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Check assaying is performed to check the precision and accuracy of the primary laboratory, and to identify
errors due to sample handling. Check assaying consists of sending pulps and rejects to a secondary lab for
analysis and comparison against the primary lab.
No check assays from mine production were sent to secondary labs for analysis in 2015.
Coarse blanks monitor the integrity of sample preparation and are used to detect contamination during
crushing and grinding of samples. Blank failures can also occur during laboratory analysis or as the result
of a sample mix-up. A blank analysis 4 times the detection limit is considered a blank failure.
EDR submitted 614 coarse pulp blanks to the Bolaitos mine Laboratory to monitor sample preparation
during 2015. Blank samples had a failure rate of 1.5% and 3.3% for silver and gold, respectively.
In 2015, a total of 4,938 samples, including control samples, were submitted during the drilling exploration
program at Bolaitos. A summary of sample type and quantity is shown in Table 11-2. A total of 253 pulps
(~5%) were also submitted for check assays.
The sampling process, including handling of samples, preparation and analysis, is shown in the quality
control flow sheet, Figure 11-7.
Table 11-2 Summary of Sample Type and Number used during the 2015 Surface Exploration Program
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Figure 11-7 Flow Sheet for Core Sampling, Sample Preparation and Analysis
Blank samples were inserted at an average rate of approximately 1 for each 20 original samples. The
control limit for blank samples is 10 times the minimum limit of detection of the assay method of the
element: 0.05 ppm for gold and 2.5 ppm for silver. Only a limited number of blank samples returned assay
values above the detection limits for gold. A total of 6 samples returned above the detection limit for silver.
Each failed sample was compared to the previous sample result. In each of the 6 failed blanks it was
determined by EDR that contamination from the previous sample was not responsible for the elevated
silver grades for the blank sample in question. Figure 11-8 and Figure 11-9 plot the blank analysis results for
gold and silver, respectively.
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Figure 11-8 Control Chart for Gold Assay from the Blank Samples Inserted into the Sample Stream
Figure 11-9 Control Chart for Silver Assay from the Blank Samples Inserted into the Sample Stream
Duplicate core samples were prepared by EDR personnel at the core storage facility. Randomly selected
sample intervals are prepared for duplicate analysis. The duplicates are then sampled by splitting the core
in half in the same manner as a normal sample, before crushing and splitting the sample into two equal
portions. Both samples are submitted to the laboratory as individual samples with unique sample numbers
for analysis. Duplicates are submitted at a ratio of one duplicate sample in every 20 samples submitted for
analysis.
Discrepancies and inconsistencies in the duplicate sample data are resolved by re-assaying either the pulp
or reject or both. For the duplicate samples, graphical analysis shows an excellent correlation coefficient for
gold (0.99) and a moderate correlation for silver (0.78). Scatter plots for gold and silver are presented as
Figure 11-10 and Figure 11-11, respectively.
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prepared by the vendor at its own laboratories and shipped directly to EDR, along with a certificate of
analysis for each standard purchased.
In 2015, a total of 246 standard reference control samples were submitted at an average frequency of 1 for
each batch of 20 samples. Reference standards were ticketed with pre-assigned numbers in order to avoid
inadvertently using sample numbers that were being used during logging.
Two different standards were submitted and analyzed for gold and silver. Reference standard information
for 2015 is summarized in Table 11-3.
For graphical analysis, results for the standards were scrutinized relative to the mean or control limit (CL),
and a lower control limit (LL) and an upper control limit (UL), as shown in Table 11-4.
Table 11-3 Reference Standards Used for Endeavour Silvers Drilling Programs
Limit Value
UL Plus 2 standard deviations from the mean
CL Recommended or Calculated value (mean) of standard reference material)
LL Minus 2 standard deviations from the mean
A reported value for a standard greater than 3 standard deviations from the mean is a failure.
Two consecutive values of a standard greater than 2 standard deviations from the mean is a
failure.
A blank value over the acceptable limit is a failure.
Results of each standard were reviewed separately. Most values for gold and silver were found to be within
the control limits, and the results are considered satisfactory. The mean of the ALS assays agrees well with
the mean value of the standard. Examples of the control charts for the standard reference material
generated by EDR are shown in Figures 11-12 through 11-15.
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Figure 11-12 Control Chart for Gold Assays from the Standard Reference Sample EDR-31
Figure 11-13 Control Chart for Silver Assays from the Standard Reference Sample EDR-31
Figure 11-14 Control Chart for Gold Assays from the Standard Reference Sample EDR-39
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Figure 11-15 Control Chart for Silver Assays from the Standard Reference Sample EDR-39
Correlation coefficients are high (>0.97) for both silver and gold, indicating a high level of agreement
between the original ALS assay and the BSI-Inspectorate check assay. Figures 11-16 and 11-17 show the
correlations between the values of gold and silver respectively.
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Bolaitos Project Data Verification
HRC limited the audit to the rock-type, assay, drillhole collar, and survey data contained in the exploration
database.
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No Assay Data
o Surface Drillholes
LZ49-1A
o Underground Drillholes
LAU12-08
LAU12-09
GAU-04
No Lithology Data
o Surface Drillholes
DN-51
DN-52
DN-53
DN-54
DN-55
DN-56
o Underground Drillholes
GAU-04
A total of 333 surface drillholes, 143 underground drillholes, and 10,007 underground channel samples
were imported into leapfrog for validation. Data with missing information were not used in the estimation
of mineral resources.
12.1.1.1 Overlaps
Overlaps identified in the audit were corrected with EDR personnel.
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12.2 Certificates
HRC received original assay certificates in excel format for the samples collected in 2015 in the current
database. A random manual check of 10% of the database against the original certificates was conducted.
The error rate within the database is considered to be less than 1% based on the number of samples spot
checked.
The laboratories are clean, well-documented, and appear to be working properly. HRC would however
recommend that EDR install a Laboratory Information Management System (LIMS) to eliminate human
error or correcting of values to an expected result. LIMS systems are proven to reduce errors in the
sampling process that result in considerable money lost. This system will automate the QA/QC reporting
for the geology department and the laboratory while reducing the time required to input data into a
database for modeling.
Exploration drilling, sampling, security, and analysis procedures are being conducted in manner that meets
or exceeds industry standard practice. All drill cores and cuttings from EDRs drilling have been
photographed. Drill logs have been digitally entered into exploration database organized and maintained in
Vulcan. The split core and cutting trays have been securely stored and are available for further checks.
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Bolaitos Project Mineral Processing and Metallurgical Testing
In 2014 it was decided to perform a test on a larger scale under the same conditions. On April 14, 2014, at
the Bolaitos plant a test was a conducted by the Falcon staff. The test was completed on approx. 70 kg
(100%) of flotation tails and obtained 274 g of primary concentrate (0.39%). The primary concentrate was
cleaned in the same Falcon concentrator and obtained 60 g (0.085%) of 2 clean concentrate. This
concentrate was cleaned by a tentadura hand and obtained a concentrated final of 10.3 g (0.015%) with 258
g/t Ag and 20.8 g/t Au. The recovery of silver concentrate ultimately was 0.19% and gold was 1.1%. Based
on these results gravity concentration was found to be unprofitable. The estimated operating costs were
three times the estimated increase in revenue. If lower operating costs, higher metal prices and a change in
mineral with coarser gold materializes than the study should be reinvestigated.
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Bolaitos Project Mineral Resouorce Estimates
The mineral resources reported here are classified as Measured, Indicated and Inferred in accordance with
standards defined by Canadian Institute of Mining, Metallurgy and Petroleum (CIM) CIM Definition
Standards - For Mineral Resources and Mineral Reserves, prepared by the CIM Standing Committee on
Reserve Definitions and adopted by CIM Council on May 10, 2014. Classification of the resources reflects the
relative confidence of the grade estimates.
14.1 Density
HRC applied a density of 2.61 t/m3 to convert volume into tonnage. The density is taken indirectly from the
NI43-101 Technical Report Resource and Reserve Estimates for the Bolaitos Mines Project Guanajuato
State Mexico dated February 25, 2015, and authored by Michael J. Munroe.
14.2 Methodology
The Bolaitos mineral resource is comprised of 21 individual veins. The veins are further subdivided into
areas and modeling method. The mineral resources have been estimated using either a Vertical
Longitudinal Projection (VLP) polygonal method (9 veins) or as 3-dimensional (3D) block model (12
veins). The 3D models have been split into 2 areas based on the vein location within the deposit. Table 14-1
summarizes the vein by the modeling method and area.
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Figure 14-1 VLP Showing the Belen Vein with Indicated (blue), Inferred (purple), and Low Grade Resource Blocks (black)
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Figure 14-3 Cross Section (5 Meter Thick) of Karina Vein showing Drillhole and Channel Samples, and Selected Composites
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Figure 14-4 Level Plan Section (5-Meter-Thick) of Karina Vein showing Samples and Selected Composites
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Minable volumes, which exclude historical production and unclassified material, were coded into the block
models by EDR (Figure 14-9).
Figure 14-9 Long Section of Karina Vein Block Model with Mineable Volumes Coded Red
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14.4.3 Compositing
The assays intervals used to define the hanging wall and footwall intercepts within each vein were
composited into a single intercept and the true thickness was calculated using the vein dip and dip
direction. Descriptive statistics for the vein true thickness composites are presented in Table 14-4.
14.4.4 Capping
Grade capping is the practice for replacing any statistical outliers with a maximum value from the assumed
sampled distribution. This is done statistically to better understand the true mean of the sample
population. The estimation of highly skewed grade distribution can be sensitive to the presence of even a
few extreme values.
EDR utilized cumulative frequency plots, and sample statistics to determine appropriate capping values for
silver and gold in each vein. HRC reviewed and confirmed these capping values. The final dataset for grade
estimate in the block model consists of composites capped as presented in Table 14-5. Descriptive statistics
for the capped silver and gold composites are presented in Tables 14-6 and 14-7, respectively.
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14.4.5 Variography
A variography analysis was completed by to establish spatial variability of silver and gold values in the
deposit. Variography establishes the appropriate contribution that any specific composite should have
when estimating a block volume value within a model. This is performed by comparing the orientation and
distance used in the estimation to the variability of other samples of similar relative direction and distance.
Variography was analyzed by EDR for silver and gold. The subsequent variograms defining the maximum
continuity were modeled with a spherical variogram. HRC reviewed the variogram model and as
determined them to be acceptable for use in estimation. The variogram parameters for silver and gold are
presented in Tables 14-8 and 14-9 respectively.
Silver and gold grades were estimated in each vein by using a single search ellipse. The size, direction, and
anisotropy of the search ellipse depended on the variography, and the number of composites.
Number of Composites
Min 1 1 1 1 1 1
Max 8 6 8 8 8 8
Search Ellipsoid Rotation
AZI 263 240 60 270 200 235
DIP -45 -85 -70 -70 -52 -65
Search Ellipsoid Distance
Major 30 10 20 22 20 22
Semi-Major 12 6 10 12 12 10
Minor 10 6 10 10 12 8
La Luz Sur La Luz Sur
Vein Lana Lucero - 29520 Lucero - 29566 La Joya
(Drillhole Model) (Channel Model)
Number of Composites
Min 1 1 1 1 1 1
Max 8 4 6 8 8 8
Search Ellipsoid Rotation
AZI 220 255 255 270 270 65
DIP -55 -45 -55 -22 -22 -80
Search Ellipsoid Distance
Major 22 25 25 30 30 22
Semi-Major 12 10 10 30 30 10
Minor 10 10 10 25 25 8
Comparison of the global descriptive statistics from the Ordinary Krige (OK), Nearest Neighbor
(NN), and composite data, and
Inspection of the ID block model on long section in comparison to the composite grades.
Lucero - 29520
(n) (g/t) (g/t) (g/t)
Composite 300 0 967 167 169 0.94
OK 14921 3 366 98 79 0.80
NN 14889 1 376 96 83 0.86
Samples Minimum Maximum Mean
Model Std. Dev. COV
Lucero - 29566
Model COV
(n) (g/t) (g/t) (g/t) Dev.
Composite 192 0.00 15.00 2.32 3.05 1.32
OK 16209 0.01 10.69 1.55 1.90 1.22
NN 16209 0.00 15.80 1.52 2.49 1.63
Samples Minimum Maximum Mean Std.
Model COV
Daniela Sur
Model COV
(n) (g/t) (g/t) (g/t) Dev.
Composite 300 0.00 15.00 2.27 2.62 1.15
OK 14921 0.03 6.22 1.10 1.20 1.09
NN 14889 0.01 6.53 1.04 1.24 1.19
Lucero - 29566
Model COV
(n) (g/t) (g/t) (g/t) Dev.
Composite 300 0.00 15.00 2.27 2.62 1.15
OK 2490 0.00 12.48 1.77 1.79 1.02
NN 2490 0.00 37.05 1.62 2.52 1.56
Samples Minimum Maximum Mean
(Channel Model) (Drillhole Model)
Std.
Model COV
Dev.
La Luz Sur
The overall similarities of the statistical comparisons between the composites and models represent an
appropriate amount of smoothing to account for the proposed narrow vein mining method with minimum
dilution. The OK and NN models generally show similar means to the composites. The OK model has
similar variance to the composites based on the Coefficient of Variation (CV). This is based on the stopes
having similar statistics to the composites in operations; however, this will need to be continually examined
as additional data is made available.
Figure 14-10 Long Section view of Daniela Sur Vein Block Model showing the Estimated Silver Grades and Composites
Figure 14-11 Long Section view of Daniela Sur Vein Block Model showing the Estimated Gold Grades and Composites
Measured resources are those blocks that reside up to 10 m from production sample data or halfway to
adjacent data points, whichever is less.
Indicated resource blocks for the existing operations are within a maximum distance of 20 m from any data
point including development, chip samples or drill hole intercepts. For the exploration division's polygonal
resource estimates, a 25 m search radius is used in the definition of indicated resources.
Inferred mineral resources are those blocks/areas where confidence in the estimate is insufficient to enable
an evaluation of the economic viability worthy of public disclosure. For the mining operations, these are
outlined and estimated based on the mine's interpretation and confidence in the historical sampling results.
For the exploration division's polygonal resource estimates, a 50 m search radius is used in the definition of
inferred resources.
Mineral resources are reported above a silver equivalent grade of 175 gpt, assuming a silver price of $17.60
per ounce. HRC used a cutoff grade to test for reasonable prospects for economic extraction. Baseline
assumptions for breakeven cutoff grade are based on Table 14-13:
Ag $/oz $17.60
Au $/oz $1,265.00
Concentrate Recovery Ag 76%
Concentrate Recovery Au 85%
Payable Ag 96%
Payable Au 96%
Mining Cost $/t $36.32
Process Cost $/t $19.91
G&A Cost $/t $15.77
SRF Costs $/t $0.00
Transport Cost $/t $0.00
NSR Ag $/g $0.41
NSR Au $/g $33.07
AgEq: Au $80.22
Mine Cutoff $ $72.01
Mill Cutoff $ $35.69
Mine Cutoff AgEq g/t 175
Mill Cutoff AgEq g/t 87
*SRF: Smelting, Refining, Freight, Incidentals
Based on these assumptions, HRC considers that reporting resources at a 175 g/t cutoff constitutes
reasonable prospects for economic extraction based on the current mining method and demonstrated
recoveries.
Table 14-14 Polygonal Resource at the Bolaitos, Effective Date of December 31, 2015
Measured 0 0 0 0 0.00 0
Indicated 156,449 288 113 569,718 2.49 12,540
Measured + Indicated 156,449 288 113 569,718 2.49 12,540
Inferred 32,802 230 101 106,238 1.85 1,953
Measured 0 0 0 0 0.00 0
Indicated 108,142 246 197 686,434 0.69 2,397
Measured + Indicated 108,142 246 197 686,434 0.69 2,397
Inferred 151,927 287 240 1,170,420 0.68 3,317
Measured 0 0 0 0 0.00 0
Indicated 0 0 0 0 0.00 0
Measured + Indicated 0 0 0 0 0.00 0
Inferred 33,041 308 184 195,328 1.78 1,891
Measured 0 0 0 0 0.00 0
Indicated 185,743 362 233 1,394,189 1.84 10,979
Measured + Indicated 185,743 362 233 1,394,189 1.84 10,979
Inferred 212,102 361 241 1,643,983 1.72 11,705
Measured 0 0 0 0 0.00 0
Indicated 0 0 0 0 0.00 0
Measured + Indicated 0 0 0 0 0.00 0
Inferred 78,920 304 121 308,222 2.61 6,615
Table 14-14 (Cont.) Polygonal Resource at the Bolaitos, Effective Date of December 31, 2015
Classification Tonnes
g/t g/t oz. g/t oz.
Measured 0 0 0 0 0.00 0
Indicated 0 0 0 0 0.00 0
Measured + Indicated 0 0 0 0 0.00 0
Inferred 57,676 311 96 177,760 3.08 5,705
Silver Equivalent Silver Gold
Classification Tonnes
g/t g/t oz. g/t oz.
Plateros
Measured 0 0 0 0 0.00 0
Indicated 189,659 247 140 856,369 1.52 9,288
Measured + Indicated 189,659 0 0 856,369 0.00 9,288
Inferred 109,701 255 144 509,528 1.58 5,564
Silver Equivalent Silver Gold
Classification Tonnes
g/t g/t oz. g/t oz.
Measured 0 0 0 0 0.00 0
TOTAL
Table 14-15 3D Block Model Resource at the Bolaitos Mine, Effective Date of December 31, 2015
Table 14-15 (Cont.) 3D Block Model Resource at the Bolaitos Mine, Effective Date of December 31, 2015
Measured 0 0 0 0 0 0.00
Indicated 0 0 0 0 0.00 0
Measured + Indicated 0 0 0 0 0.00 0
Inferred 60,062 363 138 266,872 3.21 6,203
Silver Equivalent Silver Gold
La Luz Sur (Drillhole
Classification Tonnes
g/t g/t oz. g/t oz.
Measured 35,389 262 95 108,415 2.38 2,703
Model)
Table 14-16 Mineral Resource Estimate, Effective Date December 31st, 2015
1. Measured, Indicated and Inferred resource cut-off grades were 175 g/t silver equivalent at Bolaitos.
2. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no
certainty that all or any part of the mineral resources estimated will be converted into mineral reserves.
3. Metallurgical recoveries were 75.9% silver and 84.7% gold.
4. Silver equivalents are based on a 70:1 silver:gold ratio
5. Price assumptions are $17.60 per ounce for silver and $1,260 per ounce for gold for resource cutoff
calculations.
6. Mineral resources are estimated exclusive of and in addition to mineral reserves.
The stopes were only created with the updated Measured and Indicated resources including internal stope
dilution above the calculated cutoff and have demonstrated to be economically viable, therefore Measured
and Indicated mineral resources within the stopes have been converted to Proven and Probable reserves as
defined by NI 43-101. All Inferred material has been classified as waste.
EDR also has ore grade stockpiles from current and past mining areas which are classified as part of the
overall mineral reserve. These stockpiles are used frequently to balance the feed into the plant.
15.1.1 Dilution
Dilution is applied to Measured and Indicated resource blocks depending on the mining method chosen. For
blocks to be exploited using conventional cut and fill methods, external dilution was applied in the amount
of 15% at a grade of zero. For blocks to be exploited using long hole methods, external dilution was applied
in the amount of 30% at a grade of zero. Internal dilution is also applied based on any blocks that fall
inside the stope shape but are below cutoff. A mining recovery is also applied to converted resources and
is estimated at 95%. The overall result of these factors resulted in and overall dilution factor of 24.0% for
Bolaitos.
There is no supporting documentation to support these dilutions or mining recovery estimates. HRC
recommends that individual dilution and recovery studies be performed on various veins and types of
reserve blocks to refine the global estimates used for dilution and mining recovery.
The global dilution and mining recovery factors at Bolaitos have varied over time depending on company
philosophy and experience in reconciling estimated mine production with mill sampling. Dilution and
mining recoveries are functions of many factors including workmanship, design, vein width, mining
method, extraction, and transport. Currently, there is limited information upon which to measure actual
dilution and recovery in the stopes, and transport system. The majority of stoping is now done using
longhole methods. Without a cavity measuring survey instrument, measuring dilution in these types of
stopes is problematic.
The cut-off is stated as silver equivalent since the ratio between gold and silver is variable and both
commodities are sold. The average cut-off grade used for the Bolaitos Project is 192 g/t Ag equivalent.
Silver equivalent grade is calculated as the silver grade + (gold grade * 70), taking into account gold and
silver prices and expected mill recoveries.
Table 15-1 Mineral Reserve Breakeven Cutoff for the Bolaitos Property
the mineral reserve estimates and allows a check on the effectiveness of both estimation and operating
procedures. Reconciliations identify anomalies which may prompt changes to the mine/processing
operating practices and/or to the estimation procedure.
The geology staff at Bolaitos prepare reconciliations of the Life of Mine plan (LOM) to actual production
from sampling on a monthly basis.
The reconciliation compares the LOM with geology estimates from chip sampling and plant estimates based
on head grade sampling. Reconciliation estimates a negative variance on tonnes for both geology and LOM
as compared to the plant reported tonnes for 2015 (Table 15-2). Estimated tonnage was 28% higher for
geology and 26% higher for the plant than specified in the LOM. Silver equivalent grades although were
6% lower for geology and 5% lower for the plant than specified in the LOM.
Although the reconciliations conducted by EDR show good comparisons on planned values versus actual
values the reconciliation process should be improved to include the estimated tonnes and grade from the
resource models. By comparing the LOM plan on a monthly basis to the plant production the actual
physical location of the material mined may be different in the plan versus the actual area that was mined.
Due to the many faces that are mined during a day this can only be completed on an average monthly basis
due to blending of these areas into the mill. The monthly surveyed as mined areas should be created and
saved on a monthly basis for reporting the modeled tonnes for each month. The model predicted results
versus actuals can then be used to determine if dilution factors need to be adjusted or perhaps the resource
modeling parameters may require adjustment if there are large variances.
Proven mineral reserves are the economically mineable part of the Measured resource for which
mining and processing / metallurgy information and other relevant factors demonstrate that
economic extraction is feasible. For Bolaitos Project, this applies to blocks located within
approximately 10m of existing development and for which EDR has a mine plan in place.
Probable mineral reserves are those Measured or Indicated mineral resource blocks which are
considered economic and for which EDR has a mine plan in place. For the Bolaitos mine project,
this is applicable to blocks located a maximum of 35m either vertically or horizontally from
development.
Figure 15-1 shows reserve blocks depicted on a portion of a typical longitudinal section. Proven reserve
blocks are shown in red, Probable reserve blocks are shown in green. The mine planners have determined
that extraction of the blocks is feasible given grade, tonnes, costs, and access requirements.
Figure 15-1 La Luz and Plateros Vein Resource and Reserve Section
Table 15-3 Proven and Probable Mineral Reserves, Effective Date December 31, 2015
It is unlikely that there will be a major change in ore metallurgy during the life of the current reserves, as
nearly all of the ore to be mined will come from veins with historic, recent, or current production.
The process of mineral reserve estimation includes technical information which requires subsequent
calculations or estimates to derive sub-totals, totals and weighted averages. Such calculations or
estimations inherently involve a degree of rounding and consequently introduce a margin of error. The QP
does not consider these errors to be material to the reserve estimate.
Areas of uncertainty that may materially impact the mineral reserves presented in this report include the
following:
Mining assumptions,
Dilution assumptions,
Exchange rates,
Changes in taxation or royalties,
Variations in commodity price,
Metallurgical recovery, and
Processing assumptions.
The mine employs geology, planning and surveying personnel and operates using detailed production plans
and schedules. All of the mining activities are conducted under the direct supervision and guidance of the
mine manager.
Once sill development is completed and the limits of the ore have been defined, stope production can begin.
For conventional cut and fill stoping, ore is mined upward in horizontal slices using jackleg drills. Cut and
fill mining is a method of short hole mining with hole lengths usually less than 2m. For long hole mining
the holes are typically 10-12m in length but vary from 6 to 16m depending on the stope. Under certain
circumstances concrete is used as fill to create a solid floor. This enables mining from the stope below up to
the concrete pillar and recovering most, if not all of the ore pillar that would otherwise be left behind. This
process is usually reserved for high-grade floor pillars.
For cut and fill the production cycle starts by drilling upper holes using a jackleg. Geologists mark up the
vein, and the stope is drilled and blasted accordingly. Drillholes on the vein are blasted first. After the ore
has been mucked, the holes drilled in waste are then blasted to achieve the dimensions required for the
scoop to work in the next production lift.
By comparison, longhole open-stoping, holes are drilled upwards and/or downwards from the sill level.
Longhole methods are typically 6 to 16m in length and are more productive than cut and fill methods.
Longhole stoping is also cheaper than conventional cut and fill stoping. As with cut and fill methods,
longhole stopes are filled with waste rock from development headings or from surface waste.
Some of the ore produced with the longhole drill machines is generated by drilling old pillars. Other stopes
are blind by drilling uppers and blasting a slot at the far end of the stope to enable the ore to break in the
subsequent larger stope blasts. Uppers are drilled to a 10-15m height on vein projections in rows across the
width of the vein. The rows closest to the slot are blasted first. The stope is mucked clean, or at least
sufficiently to allow the next blast. The ore is extracted using remote- controlled scoops.
Table 16-4 summarizes the actual production versus the budgeted production for 2015. Total development
for 2015 was 9,713 meters of advancement, of which 4,355 meters were in mineral development and 5,358
meters were in waste development. Waste development includes bypasses, ventilation raises and ore
passes, ramps, areas of waste vein, and cross-cuts to vein.
Actual as % of
Area Description Budget Actual Variance
Budget
No. of Days 341 318 -23 93%
Tonnes of Ore 391,600 455,226 63,626 116%
Silver Grade (g/t) 121 118 -3 98%
Gold Grade (g/t) 2.13 1.99 -0.14 93%
Plant Silver Recovery 80.1% 83.9% 3.77% 105%
Gold Recovery 82.7% 82.3% -0.39% 100%
Silver Ounces Recovered 1,220,238 1,449,773 229,535 119%
Gold Ounces Recovered 22,205 23,966 1,761 108%
No. of Days 360 360 0 100%
Tonnes of Ore 360,191 466,141 105,950 129%
Mine Silver Grade (g/t) 121 124 2 102%
Gold Grade (g/t) 2.14 1.93 -0.21 90%
Waste Development (m) 4,841 5,358 517 111%
Development Ore Development (m) 2,405 4,355 1,950 181%
Total (m) 7,246 9,713 2,467 134%
The remaining reserve life-of-mine plan is based on a nominal production rate of 1,200 tonnes per day of
ore mined from underground. This plan is also based on $16/oz silver and $1150/oz gold, and additional
parameters as shown in Table 15-1. Utilizing nominal production rates, the remaining reserves show an
expected mine life of 0.9 years. Total development planned for 2016 is 639 meters with 164 of those
meters in waste development and 475 meters in ore.
As stated previously in section 15.1.1, dilution is applied to Measured and Indicated resource blocks
depending on the mining method chosen. For blocks to be exploited using conventional cut and fill
methods, external dilution was applied in the amount of 15% at a grade of zero. For blocks to be exploited
using long hole methods, external dilution was applied in the amount of 30% at a grade of zero. Internal
dilution is also applied based on any blocks that fall inside the stope shape but are below cutoff. A mining
recovery is also applied to converted resources and is estimated at 95%. The overall result of these factors
resulted in an overall dilution factor of 24.0% for Bolaitos.
17.1 Production
As of December 31 2015, the Bolaitos mine produced 455,226t of ore grading 118 g/t silver and 1.99 g/t
gold from which 1,449,773 oz silver and 23,966 oz gold were recovered. Silver and gold recoveries averaged
83.9% and 82.3%, respectively.
Run-of-mine ore is hauled by 20 tonne dumper trucks and discharge on a grizzly with opening 11.
Oversize rock (>11) is broken by a backhoe hydraulic hammer. The undersize material falls in a feed bin
and further crushed in a primary jaw crusher of size 24x36. After the primary crusher the ore is held in
two coarse ore bins each with a 450 t capacity. Figure 17-3 shows the primary crushing circuit.
Figure 17-3 View of the Primary Crusher Circuit (left); Crushed Ore Bins (right)
From the coarse ore bins the ore is conveyed to a 6x16 vibratory screen with openings 3/8, the undersize
product is conveyed to the fine ore bins. The oversize material is fed to a 4.25 standard head Symons
secondary cone crusher where the ore size is crushed down to 2. The secondary crusher product is
screened by a 5x10 vibratory screen with openings 3/8. The screen undersize product is conveyed to fine
ore bins and the oversize material is crushed by a tertiary cone crusher (Metso, HP200). Figure 17-4 shows
the secondary crushing circuit.
Figure 17-4 Vibration Screen, Single 6x16Deck (left); Fine Crushing Circuit (right)
The fine crushed ore (approx. 80-85% of -3/8) is stored in two ore bins. The storage capacity of the first
fine ore bin is 250 tonnes and of the second ore bin is 500 tonnes of ore.
The grinding circuit consists of two ball mills: No. 1 is of size 96 x 14 with a 600 HP motor, the No. 2 mill
is of size 11x187 with a 1000 HP motor. The mills are fed independently from respective ore bins. Figure
17-5 shows the two ball mills.
Figure 17-5 Original Ball Mill #1, size 96x14 (left), Ball Mill #2, size 11x187, 1000 HP Motor, and Fine Ore Bin on the back,
Both Installed in 2011 (right)
The grinding product is the cyclone overflow with 70-75% passing 74 microns and flows further to the
flotation circuit. Each ball mill has a separate rougher and scavenger cell lines. The ball mill #1 line
consists of four (4) flotation cells with capacity 500 ft3 each. The ball mill #2 line consists of nine (9)
flotation cells with capacity 300 ft3 each. The rougher and scavenger concentrates from both lines are
combined and fed to the column flotation cell.
The flotation layout considers two cleaning stages though the 2nd cleaning stage was shut down in
December 2013 since the concentrate grade obtained in the column cell was meeting the target silver grade
between 7 and 9 kg/t. Figure 17-6 shows the cleaner cells and flocculent mixing system.
Figure 17-6 1st Cleaner Cells (left); Flocculent Mixing System (right)
The final concentrate flows by gravity to a thickener, where it is thickened to 60% of solids, then it is
pumped to a filter press where concentrate is dewatered down to 13-17% of moisture. The filtered
concentrate is stored, then loaded on 35 t trucks and shipped to concentrate traders. Figure 17-7 shows the
filter press and concentrate storage and shipment loading area.
Figure 17-7 Filter Press (left); Concentrate Storage and Shipment Loading Area (right)
The principal mine ventilation for the Bolaitos vein areas is provided by a 70,000 cfm exhaust fan that
was installed in borehole number one, with the fresh air drawn down the ramp and the other four
boreholes of the area. At the Lucero, Daniela Sur and Daniela Norte ramps, 4 exhaust fans are installed in
boreholes #8 (120k), #10 (80k), #12 (160k) and a conventional raise (80k), with the fresh air drawn in
through the ramps. This system is providing the ventilation requirements which are based on the amount
of diesel equipment running at any time, the system is an exhaust system).
Secondary ventilation is by conventional axial-vane mine fans that are from 24 to 42 inches in diameter
and 20 to 150 hp. These fans are blowing fresh air into the working areas using ventilation tubing to
deliver the necessary cfm.
Fresh air for the La Luz Mine is being provided through the access from the Los Angeles Shaft and enters
the mine on 310 level where most of the air flows to the 220 level through a series of ramps and
conventional raises.
On the 310 and 220 levels, the use of auxiliary electric ventilation fans are used to ventilate the stopes. The
total air flow is exhausting to surface through the Asuncion Shaft.
Transformer
Area Location Power input (V) Power Output (V)
Capacity (kVA)
Surface 750 13,200 440
Plant Surface 1,000 13,200 440
Surface 500 13,200 440
Surface 1,000 13,200 2,300
Surface 750 13,200 440
Surface 500 2,300 440
Surface 750 13,200 2300
Lucero Ramp
underground 750 2,300 440
Underground 500 2,300 440
underground 300 2,300 440
Underground 300 2,300 440
Bolaitos mine Surface 750 13,200 440
Surface 1,000 13,200 2,300
Surface 300 2,300 440
Underground 200 2,300 440
Cebada Mine Underground 150 2,300 440
Underground 300 2,300 440
Underground 150 2,300 440
Underground 225 2,300 440
Surface 500 13,200 2,300
San Elias Surface 225 13,200 440
Underground 200 2,300 440
Santa Rosa Surface 500 13,200 440
Surface 300 13,200 440
Asuncin
Surface 500 13200 2,300
EDR produces a silver concentrate which is then shipped for refining. The concentrate produced by EDR at
its mines is refined by third parties before being sold. To a large extent, silver concentrate is sold at the
spot price.
Table 19-1 summarizes the high and low average annual London PM gold and silver price per ounce from
2000 to 2015.
Table 19-1 Average Annual High and Low London PM Fix for Gold and Silver from 2000 to 2015 (prices expressed in US$/oz)
Over the period from 2000 to 2015, world silver and gold prices have increased significantly. This had a
favorable impact on revenue from production of most of the worlds silver mines, including the Bolaitos
Project. Between 2011 and 2015 there has been a significant reduction in the silver and gold prices, which
has caused much stress for mining companies around the world.
EDR has no contracts or agreements for mining, smelting, refining, transportation, handling or sales, that
are outside normal or generally accepted practices within the mining industry. EDR has a policy of not
hedging or forward selling any of its products.
In addition to its own workforce, EDR has a number of contract mining companies working on the
Bolaitos property.
19.1 Contracts
Bolaitos has signed a number of contracts or agreements with domestic companies and legal persons in
order to cover its production and interests goals. Table 19-2 is a summary of the main contracts that EDR
has in place at the Bolaitos Mines Project.
Date-Expiry/
Contract Description Contracting Organization
Renewal
Mining Contractor Cominvi, S.A. de C.V. Valid & Updating
Tailings Dam Bank Construction Jose Vicente Morales Zarate 8-Apr-15
Freight Concentrate Capricornio Freight Carrirs SA de CV 31-Dec-16
Security and Surveillance Services Grupo Securitas Mexico SA de CV 8-May-16
Personnel Transportation Equipment Contracting Jose Dolores Olmos 31-Dec-16
Equipment Contracting Jose Vicente Morales Zarate Valid & Updating
Equipment Contracting Isabel Quezada Valid & Updating
Equipment Contracting Cesar Vicente Martinez Reyez Valid & Updating
Plant Maintenance Contract Labor Raul Rivera Beltran Valid & Updating
Ore Haulage Contract Jose Vicente Morales Zarate Valid & Updating
Ore Haulage Contract Raul Rivera Beltran Valid & Updating
Ore Haulage Contract J Isabel Camarillo Valid & Updating
The Bolaitos Mining Unit is under a Collective Bargaining Agreement with the National Mining Workers
Union. This agreement is for an indefinite term and has a yearly general salaries revision each April.
Third party contractors have been engaged to carry out civil engineering works in the Bolaitos Mining
Unit. As of 2015 some have been engaged for works to be carried out in the mid long term range, but
most are engaged for works in the short-term range. They are hired on a case by case basis.
The mill and mine recycle batteries, oils, greases, steel and aluminum.
The following aspects are treated with special care by the company as they represent potential risks to the
operation. To reduce the possibility of an incident regarding any of these issues, Bolaitos has established
strict procedures of operation and monitoring in accordance to accepted standards.
20.3 Permitting
EDR holds all necessary environmental and mine permits to conduct planned exploration, development and
mining operations on the Bolaitos Project.
Table 20-2 lists the existing permits governing the mining and milling operations.
Table 20-2 Summary of Environmental and Mining Permits for the Bolaitos Project
Issuing Date-Expiry/
Permit Type Permit
Agency Renewal
MIA and EJT raise bore station in Lucero Ramp 11/MP-0072/04/10 SEMARNAT Permanent
MIA and EJT waste dump facilities in Lucero 11/MP-0164/07/10 SEMARNAT Mine Closure
MIA and EJT tailings dam - Authorization II 11/MP-0081/12/13 SEMARNAT Mine Closure
MIA Raise bore station 1 in Veta la Luz 11/MP-0257/09/14 SEMARNAT Mine Closure
MIA Raise bore station 2 in Veta la Luz GTO.-131.1.1/0753/2015 SEMARNAT Mine Closure
According to the population and housing census of 2010, the inhabitants in the surrounding communities
include 2,711 people living in the 7 locations. Women are 53.0% of the population. Table 20-3 presents
population by gender in the communities, and shows the relationship of Bolaitos with them, whether
directly or indirectly. The relationship with a community is indirect whenever it has a direct relationship
with another mining company. The communities of Mineral de la Luz, Llanos de Santa Ana, Sangre de
Cristo, Mineral de Mexiamora, and Mineral de San Pedro Gilmo are located inside the area of current or
future influence. Two other communities are included due to their proximity. Regardless of the indirect
relationship with these two communities, Bolaitos considers that it has a shared commitment with them.
Population
Location Relationship
Total Male Female
Mineral de la Luz Direct 1040 489 551
Santa Ana (Santana) Indirect 636 318 318
Llanos de Santa Ana Direct 953 425 528
Mesa Cuata Indirect 314 144 170
Sangre de Cristo Direct 247 114 133
Mineral de Mexiamora Direct 103 55 48
Mineral de San Pedro Gilmonene Direct 102 49 53
Total 3395 1594 1801
Bolaitos has a policy of social responsibility based on community development. The tactic used to achieve
this strategic principle is focused on:
Education and Employability: Promoting learning opportunities ranging from basic education
to technical skills and supporting the creation and development of small business that provide
an economic alternative to mining related jobs.
Infrastructure: Supporting construction, improvement or rehabilitation of community
facilities, such as the Church, the playgrounds, or the roads.
Health: In partnership with government institutions, EDR promote several health campaigns
in the communities such as dental, vaccines, nutrition, pet control, and others.
Sports: Also in partnership with government institutions and NGOs, EDR supports summer
camps for children and in the last two years has sponsored one of the main races that happen
in Guanajuato.
Environment: EDR runs different environmental campaigns in the communities, such as the
recycling of electronics, the reuse of tires to rehabilitate recreational sites, reforestation
initiatives, cleaning up campaigns, and others.
Traditions and Culture: EDR supports throughout the year the different celebrations that
happen in the community, such as the day of the miner, mothers day, day of the death,
childrens day, Christmas celebrations, and others.
In addition, EDR responds to ongoing requests from the community. A large majority of the requests are
for discarded materials, but there are also some requests for in kind donations such as transportation of
materials, transportation to events, gifts for community celebration (such as childrens day), food, and
other assistance.
In order to carry out social responsibility actions, Bolaitos has an internal procedure intended to channel
the demands of the local communities, to assess their needs, to prioritize them, and to evaluate donations
to be made to improve quality of life. The company is interested in maintaining a social license to operate
by working together with the communities, providing communication support in resolving problems,
promoting good practices in social solidarity through a work plan with the localities, and aiming for
sustainability in all its actions.
The company works respectfully and in coordination with the natural leaders in the surrounding
communities, and with local authorities, educational institutions, and government agencies to achieve
sustainable development. Actions are mainly aimed at promoting education, sports, culture, health, and
environmental care.
The company provides garbage collection service to contribute to environmental sanitation and prevent
gastrointestinal diseases. The company also supplies medical services and medicines in cases of emergency
or whenever the community service is not available.
Table 21-1 Budget 2015 and Actual 2015 Capital Costs for the Bolaitos Project
On a per tonne of ore processed basis, the cash operating costs in 2015 averaged US $71.97 per tonne,
compared to US $87.44 in 2014 and US $79.47 in 2013. Table 21-2 also summarizes the 2016 planned
estimated operating cost for the Bolaitos Project, which is budgeted at US $74.74/t processed.
Planned 2016
Department Actual 2014 (US$/t) Actual 2015 (US$/t)
(US$/t)
Mining 37.86 35.15 34.00
Processing 33.44 23.69 28.00
G&A 16.14 13.13 12.74
Total 87.44 71.97 74.74
Since EDR took control of the Bolaitos Mines Project, new mining areas have enabled EDR to increase
production by providing additional sources of mill feed. EDRs operation management teams continue to
search for improvements in efficiency, lowering costs and researching and applying low-cost mining
techniques.
Table 25-1 Mineral Resource Estimate, Effective Date December 31, 2015
1. Measured, Indicated and Inferred resource cut-off grades were 175 g/t silver equivalent at Bolaitos.
2. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no
certainty that all or any part of the mineral resources estimated will be converted into mineral reserves.
3. Metallurgical recoveries were 75.9% silver and 84.7% gold.
4. Silver equivalents are based on a 70:1 silver:gold ratio
5. Price assumptions are $17.60 per ounce for silver and $1,260 per ounce for gold for resource cutoff
calculations.
6. Mineral resources are estimated exclusive of and in addition to mineral reserves.
For the year end 2015 there was an increase of 173,800 measured and indicated tonnes from the 2014
reported resources and a decrease of 368,000 inferred tonnes. The increase in measured and indicated
tonnes is based on new exploration data and conversion of inferred resources to measured and indicate
resources as the mine was developed during 2015.
Table 25-2 Mineral Reserve Estimate, Effective Date December 31, 2015
For the year end 2015 there was a decrease of 316,200 tonnes from the 2014 reported reserves with a total
of 466,141 tonnes reported as mined during 2015.
25.3 Conclusions
The mine staff possess considerable experience and knowledge with regard to the nature of the orebodies
in and around the Bolaitos property. Mine planning and operations need to continue to assure that the
rate of waste development is sufficient to maintain the production rates included in the mine plan.
A major change in ore metallurgy during the life of the current reserves is very unlikely, as nearly all of the
ore to be mined will come from veins with historic, recent, or current production.
Areas of uncertainty that may materially impact the mineral resources and reserves and subsequent mine
life presented in this report include the following:
Mining assumptions
Dilution assumptions
Exchange rates
Changes in taxation or royalties
Variations in commodity price
Metallurgical recovery
Processing assumptions
The QP considers the Bolaitos resource and reserve estimates presented here to conform with the
requirements and guidelines set forth in Companion Policy 43-101CP and Form 43-101F1 (June 2011), and
the mineral resources and reserves presented herein are classified according to Canadian Institute of
Mining, Metallurgy and Petroleum (CIM) Definition Standards - For Mineral Resources and Mineral
Reserves, prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council on
May 10, 2014. These resources and reserves form the basis for EDRs ongoing mining operations at the
Bolaitos Mines Project.
The QP is unaware of any significant technical, legal, environmental or political considerations which
would have an adverse effect on the extraction and processing of the resources and reserves located at the
Bolaitos Mines Project. Mineral resources which have not been converted to mineral reserves, and do not
demonstrate economic viability shall remain mineral resources. There is no certainty that all or any part of
the mineral resources estimated will be converted into mineral reserves.
The QP considers that the mineral concessions in the Bolaitos mining district controlled by EDR continue
to be highly prospective both along strike and down dip of the existing mineralization.
26. RECOMMENDATIONS
Outside of the currently known reserve/resource areas, the mineral exploration potential for the Bolaitos
mines are considered to be very good. Parts of the known vein splays beyond the historically mined areas
also represent good exploration targets for additional resource tonnage. The concession areas contain many
veins and the QP considers there to be reasonable potential of discovering new veins and splays besides
those that are currently mapped.
An exploration budget has been developed for 2016 and discussed in the following section.
Regional exploration in 2016 will be focused on the Tlachiquera claim (recently staked), located at the NW
part of the District.
Table 26-1 summarizes the planned 2016 exploration budget for the Bolaitos Mines Project
2015 Program
Project Area
Meters Samples Budget US $
to define the mineralized brecciated areas as they have been an important source of economic material
encountered in the current operation, and could provide additional tonnage to support the mine plan.
EDR currently utilizes the exploration drilling and chip and muck samples in their resource and reserve
calculations. HRC recommends that future efforts focus on constructing block models for resource and
reserve reporting utilizing only the exploration and underground drilling results. The chip and muck
samples should be used to develop the production model. This will help keep data densities consistent in
each modeling effort and will provide another level in the reconciliation process to compare modeling
results.
Although the reconciliations conducted by EDR show good comparison between planned versus actual
values, the reconciliation process should be improved to include the estimated tonnes and grade from the
resource models. Because the LOM plan is compared to the plant production on a monthly basis, the actual
physical location of the material mined may be different than the planned location. Due to the many stopes
that are mined during a day this can only be completed on an average monthly basis due to blending of
stope material into the mill. The monthly surveyed as mined areas should be created into triangulation
solids and saved on a monthly basis for reporting the modeled tonnes for each month. The combination of
the 3D block models and 2D and polygonal reserves makes this process difficult but considerable progress
has been made during the last year to get all resources and reserves into 3D block models. The model-
predicted results versus actual can then be used to determine if dilution factors need to be adjusted, or
perhaps the resource modeling parameters may require adjustment if there are large variances. The mill
production should be reconciled to the final concentrate shipments on a yearly basis, and resulting
adjustment factors should be explained and reported.
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APPENDIX A
APPENDIX A
Bolaitos 2015 Exploration Results
Width Au Ag
Area Sample ID Structure Description Cu (%) Pb (%) Zn (%)
(m) (ppm) (ppm)
Bolaitos South BOL-651 0.17 MAT FALLA MATERIAL FALLA; FeO-MnO; TRAZAS Chl 0.32 6 0.0105 0.0009 0.0054
Width Au Ag
Area Sample ID Structure Description Cu (%) Pb (%) Zn (%)
(m) (ppm) (ppm)
Width Au Ag
Area Sample ID Structure Description Cu (%) Pb (%) Zn (%)
(m) (ppm) (ppm)
BV en cata al sur de
Socv. Burgos Vn txt Bx Qz bco-trsl con frags de granodiorita
Bolaitos North BOL-1174 0.3 0.58 17 0.002 <0.0002 0.0017
a=2.25m FeO M-S en fracts y dis
N25W/73NE
Bolaitos North BOL-1191 0.5 Granodiorita Cg Wea M FeO S en fracts y dis 0.2 36 0.0012 <0.0002 0.0015
Width Au Ag
Area Sample ID Structure Description Cu (%) Pb (%) Zn (%)
(m) (ppm) (ppm)
BV a=40cm
Vn txt Bx Qz trsl+vuggy Qz con Hem-limonita en
Bolaitos North BOL-1194 0.2 N10W/78NE en 0.64 308 0.0016 0.0003 0.002
cavidades FeO dis moderado Py incipiente
vereda fuera de lote
San Ignacio BOL-605 0.4 Vn Qz Vu bco-trsl con FeO M-S (Hem-Mn) 3.2 39 0.0013 0.0002 0.0006
Width Au Ag
Area Sample ID Structure Description Cu (%) Pb (%) Zn (%)
(m) (ppm) (ppm)
Vn; Qz(LECHOSO-CRIST-ESQUELETICO)-Cca
San Ignacio BOL-671 0.25 Vn 0.53 138 0.0014 0.0005 0.0013
(TRAZAS); FeO-MnO; TRAZAS DISS ARG
San Ignacio BOL-782 0.5 Vl Vl; Qz(LECHOSO-ESQUELETICO)-Cca; FeO-MnO 0.23 75 0.0078 0.0006 0.003
San Ignacio BOL-784 1.2 Vn Vn; Qz(LECHOSO-ESQUELETICO)-Cca; FeO-MnO 0.51 53 0.0005 0.0002 0.0005
Vn-Bx; Cca-Qz(LECHOSO-CRIST-ESQUELETICO);
San Ignacio BOL-1201 0.4 Vn-Bx 0.23 60 0.0006 0.0005 0.0026
FeO-MnO; TRAZAS DISS CRIST ox-Py; Chl
Width Au Ag
Area Sample ID Structure Description Cu (%) Pb (%) Zn (%)
(m) (ppm) (ppm)
Vn-Bx; Qz(LECHOSO-CRIST); TRAZAS FeO; Chl;
San Ignacio BOL-1205 0.3 Vn-Bx TRAZAS DISS Py-ARG; RBO GENERAL NW22SE/ 1.72 165 0.0004 0.0003 0.001
62 AL NE
Bx; Qz(LECHOSO-CRIST)-Cca; FeO-MnO; TRAZAS
San Ignacio BOL-1206 0.25 Bx 1.54 1225 0.0064 0.001 0.0048
DISS Py-ARG-CRIST ox
Vn; Qz(LECHOSO-CRIST); FeO-MnO; TRAZAS DISS
San Ignacio BOL-1207 0.2 Vn 0.3 113 0.0003 0.0002 0.0008
Py-ARG
Vl; Qz(ESQUELETICO-LECHOSO-CRIST); FeO-
San Miguel BOL-692 0.3 Vl 2.27 12 0.0019 0.001 0.003
MnO; Chl; NE5SW/ 84 AL NE
Vn; Qz(LECHOSO-CRIST-ESQUELETICO); FeO-
San Miguel BOL-694 0.4 Vn MnO; TRAZAS DISS CRIST ox y ARG; NE3SW/ 82 8.95 117 0.0019 0.0005 0.0018
AL E
San Miguel BOL-767 0.2 AND AND DELEZNABLE; FeO-MnO; TRAZAS DISS Qz 0.1 54 0.0052 0.0002 0.0055
Width Au Ag
Area Sample ID Structure Description Cu (%) Pb (%) Zn (%)
(m) (ppm) (ppm)
San Miguel BOL-772 0.35 Bx Bx; Qz(ESQUELETICO-LECHOSO); FeO-MnO 0.92 24 0.0018 0.0003 0.0014
San Miguel BOL-773 0.35 Bx-Vl Bx-Vl; Qz(ESQUELETICO-LECHOSO); FeO-MnO 1.62 33 0.0015 0.0003 0.0015
San Miguel BOL-774 1.5 Bx Bx; Qz(ESQUELETICO-LECHOSO); FeO-MnO 1.1 25 0.0028 0.0005 0.0022
San Miguel BOL-775 1 Bx Bx; Qz(ESQUELETICO-LECHOSO); FeO-MnO 1.08 22 0.0023 0.0003 0.0018
San Miguel BOL-929 0.5 Vl Vl; Qz(LECHOSO-CRIST); FeO-MnO; Chl-Ep 1.03 6 0.005 0.0005 0.004
Width Au Ag
Area Sample ID Structure Description Cu (%) Pb (%) Zn (%)
(m) (ppm) (ppm)
Vn-Bx; Qz(LECHOSO-CRIST-ESQUELETICO)-Cca;
San Miguel BOL-947 0.6 Vn-Bx 1.05 14 0.0017 0.0004 0.0014
FeO-MnO; TRAZAS DISS CRIST ox-Py-ARG; Chl
Rio Dike BOL-1340 1.5 Vl Vl; Qz(LECHOSO-CRIST-ESQUELETICO); FeO-MnO 0.01 2 0.0008 0.0008 0.0012
Rio Dike BOL-1342 1 Vl Vl; Qz(LECHOSO-CRIST-ESQUELETICO); FeO-MnO 0.02 9 0.0001 0.0003 0.0008
Width Au Ag
Area Sample ID Structure Description Cu (%) Pb (%) Zn (%)
(m) (ppm) (ppm)
DIQUE RIO SIL; TRAZAS FeO-MnO; TRAZAS Vl Qz
Rio Dike BOL-1352 1.5 DIQUE 0.27 24 0.0003 0.0005 0.0027
(LECHOSO-CRIST)
DIQUE RIO SIL; C\Vl Qz(LECHOSO-CRIST); ALT
Rio Dike BOL-1357 1 DIQUE C/T Vl 0.01 1 0.0021 0.0003 0.0022
ARG; TRAZAS DISS CRIST ox
DIQUE RIO SIL C\Vl, Qz(LECHOSO-CRIST-
Rio Dike BOL-1358 0.6 DIQUE C/T Vl ESQUELETICO); FeO-MnO; ALT ARG; TRAZAS 0.01 16 0.0013 0.0003 0.0037
MATERIAL FALLA
DIQUE RIO SIL-DELEZNABLE; ALT ARG; FeO-
Rio Dike BOL-1360 0.4 DIQUE <0.05 27 0.0027 <0.0002 0.0059
MnO; Chl
Rio Dike BOL-1361 0.35 DIQUE DIQUE RIO SIL-DELEZNABLE; ALT ARG; FeO-MnO 0.08 5 0.0029 0.0006 0.0016
Bolaitos/Mina Grande BOL-1379 0.65 Vn Vn; Qz(LECHOSO-CRIST)-Cca (TRAZAS) 0.21 103 0.0002 <0.0002 0.0002
Vn-BAND-Bx; Qz(LECHOSO)-Cca; FeO-MnO;
Bolaitos/Mina Grande BOL-1382 0.8 Vn-BAND-Bx 1.01 73 0.0005 <0.0002 0.0014
TRAZAS DISS CRIST ox-Py-ARG
Vn-Bx; Qz(LECHOSO-CRIST-ESQUELETICO)-
Bolaitos/Mina Grande BOL-1387 0.3 Vn-Bx 2.2 832 0.0005 0.0006 0.0016
Cca(TRAZAS); TRAZAS DISS CRIST ox-POSS ARG
Vn-BAND; Qz(LECHOSO-CRIST)-Cca(TRAZAS);
Bolaitos/Mina Grande BOL-1388 0.4 Vn-BAND 0.23 65 0.0001 <0.0002 <0.0002
TRAZAS FeO-MnO; POSS TRAZAS CRIST ox-ARG
Vn; Qz(LECHOSO-CRIST)-Cca(TRAZAS);
Bolaitos/Mina Grande BOL-1392 0.4 Vn 0.19 53 0.0003 0.0002 0.0002
NW40SE/ 67 AL NE
Bolaitos/Mina Grande BOL-1393 0.3 Vn-BAND Vn-BAND; Qz(LECHOSO-CRIST)-Cca(TRAZAS) 0.14 178 0.0003 0.0002 0.0003
Width Au Ag
Area Sample ID Structure Description Cu (%) Pb (%) Zn (%)
(m) (ppm) (ppm)
Bolaitos/Mina Grande BOL-1394 0.55 Vn Vn; Qz(LECHOSO-CRIST)-Cca(TRAZAS) 0.26 50 0.0002 <0.0002 0.0004
Bolaitos/Mina Grande BOL-1480 0.35 Vn-Bx Vn-Bx; Qz(LECHOSO); TRAZAS DISS Py-ARG 4.37 177 0.0024 <0.0002 0.001
Width Au Ag
Area Sample ID Structure Description Cu (%) Pb (%) Zn (%)
(m) (ppm) (ppm)
Width Au Ag
Area Sample ID Structure Description Cu (%) Pb (%) Zn (%)
(m) (ppm) (ppm)
AND; C/POCAS Vl Qz(LECHOSO-CRIST-
Raices-San Bernab BOL-800 0.9 AND ESQUELETICO); FeO-MnO; Chl; TRAZAS DISS 0.74 4 0.0009 0.0003 0.0049
CRIST HEM; NW8SE/ 75 AL W
AND; C/ POCAS TRAZAS Vl Qz(LECHOSO-CRIST-
Raices-San Bernab BOL-901 0.6 AND ESQUELETICO); FeO-MnO; Chl; TRAZAS DISS 2.02 7 0.0011 0.0004 0.0079
CRIST HEM
Vn-BAND-Bx; Qz(LECHOSO-CRIST-ESQUELETICO);
Raices-San Bernab BOL-904 0.4 Vn-BAND-Bx 0.26 20 0.0031 0.0003 0.0022
FeO-MnO;Chl; NW13SE/ 65 AL NE
TERRERO; Qz(LECHOSO-CRIST-ESQUELETICO)-
Raices-San Bernab BOL-908 TERRERO 2.93 10 0.0006 0.0002 0.0006
Cca; FeO-MnO; Chl; REBAJE TAPADO
Raices-San Bernab BOL-909 0.4 AND C/Vl AND C/Vl; Qz(CRIST-LECHOSO); FeO-MnO; Chl 0.83 10 0.0071 <0.0002 0.0075
Vn-Bx-BAND; Qz(LECHOSO-CRIST-ESQUELETICO);
Raices-San Bernab BOL-913 0.4 Vn 0.93 35 0.0008 <0.0002 0.0014
FeO-MnO; Chl; TRAZAS DISS ARG-CRIST ox
FLOTADOS; Qz(LECHOSO-CRIST-ESQUELETICO);
Raices-San Bernab BOL-914 0 FLOTADOS 0.57 116 0.0012 <0.0002 0.0012
FeO-MnO; Chl; TRAZAS DISS ARG-CRIST ox
Width Au Ag
Area Sample ID Structure Description Cu (%) Pb (%) Zn (%)
(m) (ppm) (ppm)
Posible Vn Soledad
Vl Qz bco-trsl; Py <1% con frag's andesita, Arg
Soledad BOL-628 0.2 a=5-10cm 0.63 254 0.0047 0.0005 0.0055
W, FeO en fx's
N22W/82NE
Soledad BOL-629 0.45 Andesita Fg FeO M en fx's, Arg escasa 0.01 12 0.007 <0.0002 0.0068
Vl alto de posible
Vn Qz bco-trsl-sacaroide, Vuggy Qz con
Soledad BOL-631 0.2 Soledad Vein a=20 1.61 38 0.0006 <0.0002 0.0004
presencia de FeO M (Hem principalmente)
N32E/44SW
Soledad BOL-632 0.5 And de Fg con FeO M en fx's 0.01 2 0.006 <0.0002 0.0069
Vl al bajo
semiparalela a
Vl Bx Qz trsl-bco, Vuggy Qz con frag's de
Soledad BOL-633 0.15 posible Soledad Vn 0.07 3 0.0031 0.0002 0.0026
andesita; FeO M-S
a=2-5cm
N26W/51NE
Vl a=0.01-0.04m Sw en andesitas de Fg, Vt's Qz tsl-bco drusado
Soledad BOL-745 0.3 0.85 1 0.0023 0.0002 0.0057
NF/63NE de 1-4cm FeO M(lim-hem)
Vn a=0.19m
N6W/73NE SV Vn Qz Vuggy trsl-bco+Cca sacaroide Py <1%, FeO
Soledad BOL-747 0.25 0.17 7 0.0016 0.0003 0.003
Arriba de Tajo El M (Mn-Hem-Lim) en cavidades
Varal
Vl a=0.02 a 0.04m
Soledad BOL-749 0.2 Vl Qz trsl-bco-drusado Py incipiente; FeO M-S 1.66 6 0.003 0.0002 0.0045
N9W/75NE
Vl a=0.06m Vl Qz trsl-bco drusado trazas de Py FeO M-S
Soledad BOL-801 0.25 1.58 6 0.0026 <0.0002 0.0022
N65W/55NE (Hem)
Width Au Ag
Area Sample ID Structure Description Cu (%) Pb (%) Zn (%)
(m) (ppm) (ppm)
Bx Qz trsl+Cca txt sacaroide y Qz trsl drusado
Vl a=30cm
South-Central Realejo BOL-1020 0.3 FeO moderado en fracturas y escaso dis con Py 0.62 6 0.0008 <0.0002 0.0011
N42E/78SE
ox incipiente
Vl a=4cm Bx Qz trsl drusado+Cca moderado FeO en fracts
South-Central Realejo BOL-1023 0.2 0.02 1 0.0029 <0.0002 0.005
N4W/80SW W-M
Vl a=9-18cm
Vl Qz trsl+Cca escasa+vuggy Qz FeO moderado
South-Central Realejo BOL-1026 0.2 N12W/69SW 0.01 2 0.0016 0.0002 0.0011
en fracts Hem e cavidades FeO W diss
Realejo Vn
Width Au Ag
Area Sample ID Structure Description Cu (%) Pb (%) Zn (%)
(m) (ppm) (ppm)
Vl a=2cm Vl pequea txt bx Qz trtsl drusado FeO M-S dis
South-Central Realejo BOL-832 0.2 0.02 3 0.0052 0.0002 0.0027
N34W/70NE yen fracts en diorita de FmL
Vl a=15cm Bx Qz trsl escaso drusado con FeO M-S dis y en
South-Central Realejo BOL-838 0.2 0.11 2 0.0026 <0.0002 0.0035
N2W/69W fracts con Py ox incipiente
Bx a=50cm Bx en Diorita Fg Qz trsl drusado+Hem y FeO dis y
South-Central Realejo BOL-841 0.6 0.13 1 0.0021 <0.0002 0.0039
N10E/60NW en fracts
Vl a=13cm
Vn txt msv-bx Qz trsl+Cca txt sacaroide con Qz
N20W/68SW
Realejo BOL-807 0.2 trsl drusado y escaso boxwork FeO en fracts y 0.18 103 0.0011 <0.0002 0.0016
REALEJO VN En talud
diss moderado con Pirolusita escasa
presa de jales
Vl desprendimiento Qz trsl+Cca txt sacaroide
Realejo BOL-808 1 FeO moderado diss y en fracts con frags de 0.31 148 0.0015 <0.0002 0.0022
Diorita
Realejo BOL-810 0.45 Diorita Arg S con vt<1cm Qz trsl FeO M-S dis 0.19 10 0.0021 <0.0002 0.004
Width Au Ag
Area Sample ID Structure Description Cu (%) Pb (%) Zn (%)
(m) (ppm) (ppm)
Vn Vuggy Qz trsl sacaroide de aspecto Ban por
Realejo BOL-997 0.3 0.1 54 0.0012 <0.0002 0.0007
coloraciones causadas por FeO
Width Au Ag
Area Sample ID Structure Description Cu (%) Pb (%) Zn (%)
(m) (ppm) (ppm)
Bx al bajo de Vl, a=2- Andesita Sa, FeO M en fx's, presenta vt Bx de 2-
Realejo BOL-960 0.2 0.07 69 0.0029 0.0003 0.0036
5cm N10W/74NE 5cm de Qz trsl-bco
Vl Bx a=10cm Bx en adesita de Fg, vt's Vuggy Qz trsl-bco FeO
Realejo BOL-963 0.5 0.07 29 0.0033 <0.0002 0.003
N17W/49NE M en fx's
Vl a=8-10cm
Realejo BOL-967 0.2 Vl Vuggy Qz trsl-bco, FeO M-S en cavidades 0.03 14 0.0026 <0.0002 0.0019
N34W/77SW
Width Au Ag
Area Sample ID Structure Description Cu (%) Pb (%) Zn (%)
(m) (ppm) (ppm)
Vn con material arcilloso de Qz trsl-bco Py <1%,
Dam Tunnel BOL-1116 0.2 0.07 20 0.0005 <0.0002 0.0009
frag's de Andesita, Arg M
F a=60cm
Dam Tunnel BOL-1118 0.35 F alla Fag-Sa en andesitas, Arg M-S, FeO W 0.11 4 0.0019 <0.0002 0.0014
N05W/83NE
Vl a=5-10cm Andesita Fg, con vt de Qz msv bco, Prop W, FeO
Dam Tunnel BOL-1126 0.25 0.01 0 0.0015 <0.0002 0.0018
N46E/58SE W en fx's
Vl a=20cm Bx Qz trsl con frag`s de andesita, Prop W, FeO en
Dam Tunnel BOL-1129 0.2 0.03 6 0.0021 <0.0002 0.0009
N27W/86SW escasas Fx's
Vl a=20cm Bx de Qz trsl-bco con FeO M en algunas fx's con
Dam Tunnel BOL-1133 0.25 0.28 10 0.0016 <0.0002 0.0013
N20E/54SE fragmentos de andesita
Vl a=15cm
Dam Tunnel BOL-1136 0.2 Bx de Qz trsl Msv con fragmentos de andesita 0.02 17 0.0013 <0.0002 0.0015
N15E/64NSE
Bx En andesita Fg con Vt de Qzo Msv trsl, Prop
Dam Tunnel BOL-1139 0.2 0.03 17 0.0027 <0.0002 0.0029
W, FeO escasa
Width Au Ag
Area Sample ID Structure Description Cu (%) Pb (%) Zn (%)
(m) (ppm) (ppm)
Erika BOL-924 0.6 ALT ARG ALT ARG; ox-Fe; DELELZNABLE <0.005 <0.2 0.0059 0.0004 0.0063
Erika BOL-925 0.8 DIQUE DIQUE POCO SIL; ALT ARG; TRAZAS FeO-MnO <0.005 <0.2 0.0003 <0.0002 0.0007
Edith BOL-1215 0.45 MATERIAL FALLA MATERIAL DE FALLA DELEZNABLE; ALT ARG 0.12 2 0.0017 <0.0002 0.0045
Vn-BAND; Qz(LECHOSO-CRIST-ESQUELETICO);
Edith BOL-1218 0.45 Vn 0.63 47 0.0005 <0.0002 0.0011
FeO-MnO; TRAZAS DISS CRIST ox-Py-ARG
TERRERO; Qz(LECHOSO-CRIST-ESQUELETICO);
Perla BOL-1230 0 TERRERO 3.56 294 0.0006 0.0002 0.0008
TRAZAS FeO-MnO; TRAZAS DISS CRIST ox; CATA
Width Au Ag
Area Sample ID Structure Description Cu (%) Pb (%) Zn (%)
(m) (ppm) (ppm)
FLOTADOS Qz(LECHOSO-CRIST-ESQUELETICO);
Perla BOL-1234 0 FLOTADOS TRAZAS DISS CRIST ox-ARG; EN TRAZA DE VETA 1.6 42 0.0004 <0.0002 0.0015
PERLA
FLOTADOS Qz(LECHOSO-CRIST-ESQUELETICO)-
Perla BOL-1235 0 FLOTADOS Cca(TRAZAS); FeO-MnO; TRAZAS DISS CRIST ox ; 0.31 17 0.0002 <0.0002 0.0006
EN TRAZA DE VETA PERLA
Vn-BAND-Bx; Qz(LECHOSO-CRIST-
ESQUELETICO)-Cca; HORIZONTES ARCILLOSOS;
Perla BOL-1236 0.3 Vn-BAND 25.9 202 0.0043 0.0002 0.0039
BANDAS FeO-MnO; TRAZAS DISS CRIST ox;
NW4SE/ 44 AL W
Vn-BAND; Qz(LECHOSO-CRIST-ESQUELETICO)-
Perla BOL-1237 0.2 Vn-BAND 0.86 80 0.0014 <0.0002 0.0023
Cca; FeO-MnO; TRAZAS DISS ARG-CRIST ox
Perla BOL-1239 0.3 AND AND DELEZNABLE; FeO/MnO 0.26 13 0.0041 <0.0002 0.0058
Vn-BAND-Bx; Qz(LECHOSO-CRIST-
Perla BOL-1240 0.4 Vn-BAND-Bx ESQUELETICO)-Cca; FeO-MnO; TRAZAS DISS 0.73 117 0.0014 0.0003 0.0019
CRIST ox; NE15SW/ 48 AL W
Width Au Ag
Area Sample ID Structure Description Cu (%) Pb (%) Zn (%)
(m) (ppm) (ppm)
MATERIAL FALLA; TRAZAS Vl Qz(LECHOSO-
Perla BOL-1245 0.45 MATERIAL FALLA CRIST-ESQUELETICO); FeO-MnO; TRAZAS CRIST 0.25 19 0.0032 0.0002 0.0052
ox
Perla BOL-1246 0.05 Vl Vl; Qz(LECHOSO-CRIST); TRAZAS FeO-MnO 0.21 24 0.0007 <0.0002 0.0007
MATERIAL DE FALLA DELEZNABLE; ALT ARG;
Perla BOL-1247 0.65 MATERIAL FALLA 0.67 138 0.0043 0.0003 0.0033
FeO-MnO
Vl; Qz(LECHOSO-CRIST-ESQUELETICO)-
Perla BOL-1248 0.5 Vl Cca(TRAZAS); FeO-MnO; TRAZAS CRIST ox N-S/ 0.04 3 0.0012 <0.0002 0.0012
50 AL W
MATERIAL DE FALLA DELEZNABLE; ALT ARG;
Perla BOL-1249 1.6 MATERIAL FALLA 0.02 2 0.003 <0.0002 0.0052
FeO-MnO
MATERIAL DE FALLA DELEZNABLE; FeO-MnO;
Perla BOL-1250 0.6 MATERIAL FALLA TRAZAS Vl Qz(LECHOSO) AL BAJO 0.37 4 0.0035 0.0003 0.0054
ESTRATIGRAFICO;
BOL- Vt; Qz(LECHOSO-CRIST-ESQUELETICO); FeO-
Perla 0.1 Vt 0.21 31 0.002 <0.0002 0.0049
1251-A MnO; N-S/ 45 AL W
Andesita Fg con FeO eb fx's y diss por
Ana Rosa BOL-1143 0.9 <0.005 <0.2 0.0091 0.0004 0.0062
intemperismo
Vl a=10-15cm Vl compueta por frag's de Qz bco-trsl, vuggy Qz,
Ana Rosa BOL-1144 0.2 <0.005 0.2 0.0013 <0.0002 0.0008
N71E/82SE FeO W-M
Andesita Fg con FeO en algunas fracturas, Arg
Ana Rosa BOL-1145 0.9 <0.005 <0.2 0.0085 <0.0002 0.006
escasa, We M
Ana Rosa BOL-1146 0.65 Andesita Fg, trazas de Py, FeO en fx's <0.005 0.4 0.028 0.0005 0.0761
Creston Silicificado Creston de Qz bco lechoso en fragmentos trsl Py
Ana Rosa BOL-1147 0.3 <0.005 0.3 0.0474 0.0002 0.0364
a=30cm N19W/59NE <1%, FeO W
Ana Rosa BOL-1148 0.6 Andesita Fg, FeO escasos <0.005 <0.2 0.0014 0.0005 0.015
Ana Rosa BOL-1149 1 Andesita Fg, Prop W, FeO diss 0.01 1 0.0089 0.0002 0.0102
Andesita Fg con vl <1cm de Qz bco lechos, Prop
Ana Rosa BOL-1150 0.35 0.01 0.7 0.0104 0.0002 0.0095
W
Andesita de Fg con Vl 3-5cm de Qz trsl-bco
Vl a=3-5cm
Ana Rosa BOL-1251 0.2 lechoso con diss de Py 0-1%, Prop W se 0.07 1.9 0.0063 0.0005 0.0085
N54E/77SE
observen escasos FeO
Ana Rosa BOL-1252 1 Andesita Fg, Prop W, FeO en algunas fx mm 0.01 0.7 0.0067 0.0002 0.0072