INV-TSX Canadian based Ecuadorian mining development company - - PowerPoint PPT Presentation
INV-TSX Canadian based Ecuadorian mining development company - - PowerPoint PPT Presentation
This presentation contains certain forward-looking statements. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of INV Metals Inc. (INV
This presentation contains certain forward-looking statements. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of INV Metals Inc. (“INV Metals”) to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks related to the actual results of exploration activities, conclusions of economic evaluations and the assumptions on which such economic evaluations are based, the industry-wide risks and Loma Larga Project-specific risks which are identified in the technical report (the “Technical Report”) that summarizes the Preliminary Feasibility Study (the “PFS”) available on SEDAR, risks associated with mining and mineral exploration activities, uncertainty in the estimation of Mineral Resources and Mineral Reserves, including, without limitation, the assumptions on which such estimates are based, changes in Loma Larga Project parameters as plans continue to be refined, uncertainty surrounding metallurgical test results, future prices of metals, economic and political stability in Ecuador and Canada, the results of discussions with the Ecuador government, the risk of future unfavourable tax law or regulation changes in Ecuador, environmental risks and hazards, increased infrastructure and/or operating costs, availability of future financing, labour and employment matters, and government regulation. There is no guarantee that any drill targets or economic mineral deposits will be found on INV Metals’ properties. For a more detailed discussion of such risks and other factors, refer to INV Metals’ annual information form (the “AIF”) and other regulatory filings filed with Canadian securities regulators available on SEDAR. Except as required by law, INV Metals does not assume any obligation to release publicly any revisions to forward-looking statements contained in this presentation to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The scientific and technical information contained in this presentation has been reviewed and approved by Bill Shaver, P.Eng., COO, INV Metals Inc. and a Qualified Person under NI 43-101. For readers to fully understand the information in this presentation, they should review the Technical Report in its entirety, including all of the qualifications, assumptions and exclusions that relate to the information set out in the Technical Report, which qualify the technical information contained in the Technical Report. The Technical Report is intended to be read as a whole, and sections should not be reviewed or relied upon out of
- context. The Technical Report also describes the Mineral Resource and Mineral Reserve estimation methodologies and the assumptions used, and to
which those estimates are subject. As noted above, the AIF includes details of certain risk factors that could materially affect the potential development of the Mineral Resources and Mineral Reserves and should be considered carefully. “Adjusted Operating Costs”, “All-in Sustaining Costs”, and “Total Operating Costs per Tonne” are non-International Financial Reporting Standards (“IFRS”) Performance Measures. These performance measures are included because these statistics are key performance measures that management uses to monitor performance. Management uses these statistics to assess how the Loma Larga Project ranks against its peer projects and to assess the overall effectiveness and efficiency of the contemplated mining operations. These performance measures do not have a meaning within IFRS and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. These performance measures should not be considered in isolation as a substitute for measures of performance in accordance with IFRS. All references to currencies herein, unless otherwise noted, are to U.S. dollars.
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Undervalued at 0.19x NAV (5%)
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Canadian based Ecuadorian mining development company Positive mining and tax regimes in Ecuador Proven mine building/financing team Great exploration potential
- Loma Larga – new discovery to the west
- 4 new concessions – encouraging initial results
Loma Larga on Pathway to Development
- Simple mine and process design
- Robust PFS
- Feasibility Study underway (Q4 2018) goal of production
late 2020
- Won “Best Country Award” at Mines and Money Americas in October 2017
- Strong federal governmental and community support
- Good infrastructure with significant recent investment in roads, ports, airports
- Currently investing in 10 hydroelectric projects
- Projected Capacity of 8,300 MW
- Hydro exports anticipated by 2020
- US$ Currency
INV-TSX
- Loma Larga designated one of 5 strategic mining projects by Ministry of Mines
- Nearest city is Cuenca: ~400,000 people, 40 km away
- Closest community is 10 km away
- Expect workers to be bused to site, no permanent camp required
- 3,600 m elevation
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Ecuador’s recently completed 487-MW Sopladora hydropower plant
Quito’s new International airport
- After tax IRR of 26.3% at $1,250/oz gold
- Pre tax NPV (@5%) of $489.9M, After tax $301M
- $286M initial capital
- AISC of $590/oz gold, cash costs $510/oz gold
- 150,000 oz gold average annual production, 12 year mine life
INV-TSX
- Expertise in laboratory and pilot plant testing; plant design and commissioning; feasibility
studies; project and plant operations management
- Over 20 years experience in the mining sector
- CPA, CA and former global mining institutional sales-person with RBC CM and base metals
mining associate with BMO CM
- P. Geo. with over 45 years of experience in the mining business, 2018 Canadian Mining Hall
- f Fame Inductee
- Founder/Co Founder and executive/director of TMAC Resources, Torex Resources, INV
Metals and FNX Mining
- Mining Engineer with over 40 years of experience in mine construction and operations
- Vast experience includes founder of Dynatec, COO of FNX and most recently CEO of DMC
Mining services
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- DRA consultants appointed to lead Feasibility Study, strong
construction and operating experience
- Required test work and modelling underway
- Expected completion Q4/18
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2
- After tax IRR of 26.3% at $1,250/oz gold
- Pre tax NPV (@5%) of $489.9M, After tax $301M
- $286M initial capital
- AISC of $590/oz gold, cash costs $510/oz gold
- 150,000 oz gold average annual production, 12 year mine
life
3
- Ramp access into underground mine
- Contact water will be collected and treated
- Simple metallurgical process, 2 concentrates - no cyanide
- 50% tailings back underground as paste backfill
- Lined filtered/paste tailings storage facility
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- Completed engineering associated with design and
development of underground ramp and related infrastructure
- Compiling permitting requirements for submission H1/18
- Aim to begin construction of ramp H2/18
Resource Classification Zone Tonnage (Mt) Contained Gold (M oz) Au Grade (gpt) Contained Silver (M oz) Ag Grade (gpt) Contained Copper (M lb) Cu Grade (%)
Indicated High Grade Main 10.4 2.06 6.14 11.6 34.6 81.7 0.35 Low Grade Main 7.4 0.48 2.02 4.7 19.4 22.3 0.14 Total 17.9 2.55 4.42 16.3 28.3 104.0 0.26 Inferred
- 7.3
0.54 2.29 5.7 24.1 21.0 0.13 Reserves Tonnage (Mt) Contained Gold (M oz) Au Grade (gpt) Contained Silver (M oz) Ag Grade (gpt) Contained Copper (M lb) Cu Grade (%) Total 11.6 1.86 4.98 10.5 28.0 73.6 0.29
1. Mineral Reserves are reported within mine designs carried out using a cut-off grade of 2 g/t Au. Incremental ore consists of development that meets an incremental cut-off grade
- f 1 g/t Au.
2. Mineral Reserves are estimated using a long-term gold price of US$1,250 per ounce, silver price of US$20 per ounce, and copper price of US$3.00 per pound. 1. Mineral Resources are reported at an NSR cut-off value of US$60/t. 2. Mineral Resources are estimated using a long-term gold price of $1,500 per ounce, silver price of $25 per ounce, and copper price of $3.50 per pound. 3. Mineral Resources are inclusive of Mineral Reserves.
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High Grade Reserve: 1.86 Moz @ 5.0 g/t Resource: 1.02 Moz @ 2.2 g/t
Loma Larga Deposit Looking East
Shallow, flat lying, thick orebody allows for simple mine plan
- Minimal footprint on surface
- Ramp access directly into high grade zones
- Continuous orebody allows for efficient and
concentrated mining
- Long hole stoping mining planned for most
- f the orebody
- Mining rate of 3,000 tpd
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Long Section B-B’
Looking East
Ramp ~1,300 m Cross Section A-A’
Looking North
125m
E W N
Plan View N
A A’ B’ B
S
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GOLD COPPER CONCENTRATE GOLD PYRITE CONCENTRATE
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CONCENTRATE DETAILS GOLD PYRITE GOLD COPPER Tonnes Produced Annually (avg.) 108,300 8,500 % of Total Concentrate 93% 7% % of Total Gold 83% 17% % of Total Revenue 75% 25%
DETAILS
GOLD PYRITE CON GOLD COPPER CON
GRADE PAYABILITY GRADE PAYABILITY
Gold 37 g/t 93% 111 g/t 80% Copper 0.43% 0% 30% 96.5% Silver 142 g/t 93% 1,577 g/t 75% Sulphur 50%
- 40%
- Arsenic
<0.2%
- 11%
- Value
$/t $1,688 $1,541 $7,697 $6,465 CRUSHING/GRINDING MINE
Mining rate: 3,000 tpd
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Community Engagement and Consultation Feasibility Study Advanced Exploration Ramp Design and Construction Project Financing Project Permitting Detailed Engineering and Construction Exploration (Loma Larga/Regional) Gold Production
- Follow up field work and target delineation in regional exploration programs
- Phase 2 drill program at Loma Larga Q2/18
- Advanced exploration ramp design, engineering and permitting H1/18
- Commencement of advanced exploration ramp construction forecasted H2/18
- Completion of Feasibility Study forecasted Q4/18
- Granting of environmental and construction permits
- Completion of development financing
- Start of construction
- First gold concentrate production
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- INV Metals has executed significant CSR programs for over 10 years
- The programs are designed to improve the quality of life and income generating ability
for the families surrounding the project
- Examples include:
- Sustainable enterprises produced by women such as jarred fruit, knitting,
handicrafts and baking
- Production of organic medicinal and personal products made from indigenous
plants
- Programs to improve agriculture husbandry and agricultural production
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- Focus on sustainable projects primarily with woman and children
- Focus on sustainable and educational projects with agriculture, animal husbandry, water
- Extensive knowledge of indigenous plants and climate
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Source: Exploring the Earth by Stephanie Kykara
- Ecuador has several world class exploration and
development projects underway
- The Andean mineral belt is highly prospective
geologically and contains many mines along its length
- The obvious exception is in Ecuador
- This is not due to geology but due to cover of
vegetation making exploration more difficult
Cascabel Rio Blanco Fruta Del Norte Mirador La Carolina Las Peñas La Rebuscada Tierras Coloradas
Ecuador
Loma Larga
INV Development Project INV Exploration Project Other Significant Projects
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- First significant exploration drilling at Loma Larga since 2008, discovered a potential
extension of Loma Larga to the west
- 12 holes to the west of the orebody hit gold mineralization over an area of about 400
m by 400 m
- 10 holes returned grades above the 2 g/t reserve cut off grade used in the PFS
- Highlights include: 2.8 m @ 20.2 g/t Au, 7 m @ 9.4 g/t Au, 2.7 m @ 8.8 g/t Au,
4 m @ 5.3 g/t Au, and 4 m @ 5.3 g/t Au
- Phase 2 drill program at LL to follow up on the new discovery expected in Q2/18
- A deeper hole to the north also encountered porphyry style mineralization grading
0.2 g/t Au and 523 ppm Cu over 622 m starting at 538 m
- Initial prospecting programs on Tierras Coloradas and Las Peñas discovered gold
mineralized epithermal quartz veins on surface
- At Las Peñas a hydrothermally altered porphyry with quartz stock work were identified
in outcrop
- Initial field work is ongoing at Carolina and La Rebuscada
- Further detailed mapping and sampling to be completed at all 4 projects
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INV-TSX
- Deep hole drilled north of
deposit to test for potential porphyry type mineralization
- Porphyry style alteration was
intersected at 538 m
- Gold values encountered in 12
holes drilled west of orebody in an area ~400 m x 400 m
- 10 holes had intervals grading
above reserve cut off grade of 2 g/t Au
- 3 holes hit potential new feeder
zone (section 700)
- Phase 2 drill program expected
to begin in Q2 to follow up on discovery
Section 900 Section 800 Section 700
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40 m 40 m 30 m
LLD 383: 170 m-221 m 51.3 m @ 3.2 g/t Au, 48 g/t Ag Incl 218 m-221 m 2.8 m @ 20.2 g/t Au, 434 g/t Ag LLD 386: 152 m-189 m 37.4 m @ 4.9 g/t Au, 52.2 g/t Ag Incl 174 m-181 m 7 m @ 9.4 g/t Au, 72 g/t Ag LLD 385: 244 m-262 m 18 m @ 2.3 g/t Au, 38.8 g/t Ag Incl 250 m-253 m 2.7 m @ 8.8 g/t Au, 211.1 g/t Ag
SECTION 700
Outline of Loma Larga Reserve in red
W E
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Tierras Coloradas
- Epithermal gold and Porphyry target
- Gold mineralized En Echelon vein
system discovered on surface
- 6 veins over a significant area
- Highlights: 84 g/t Au, 62 g/t Au, 49 g/t,
37 g/t Au, 31 g/t Au + Ag values
La Rebuscada
- Epithermal and Skarn gold and
VMS target
La Carolina
- Porphyry Potential
- Proximal to Sol Gold
Las Peñas
- Along trend with Rio Blanco mine
- High and low sulphidation gold and Porphyry
targets
- Gold mineralized vein and veinlet systems
discovered on surface
- Porphyry style mineralization in outcrop
- Grab Sample highlights: 88 g/t, 40 g/t, 36 g/t
Au + Ag values Carolina Cascabel
Loma Larga
N
- INV Metals awarded 4 highly prospective
greenfield exploration projects in 2017 totaling ~ 43,500 ha
- Actively seeking to acquire further
concessions
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Area of inset picture above
Aparecida Vein 6 significant Gold mineralized veins have been identified over an area of ~ 2 km by 3 km
Aparecida vein has been traced for > 1.5 km long, 2-5 m wide
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4
Stockwork at Playas Encantadas Altered diorite porphyry Qtz Vein Zones
Altered stockwork within diorite porphyry Mineralized stockwork Qtz, Py, Mgt +- Cpy, Cov
- Porphyry style
mineralization in
- utcrop
- Gold mineralized vein
and veinlet systems discovered on surface
- Along trend with Rio
Blanco mine
- High and low sulphidation
gold and Porphyry targets
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Carolina
- Porphyry Potential
- South of Cascabel
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~ 1.5 x 2 km Rock chip anomaly Silicification with disseminated sulphides
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- Treasury: ~C$14 million (unaudited as of May 11, 2018)
- Bought Deal completed March 2017: C$27.6 million
- IAMGOLD maintained pro-rata ownership of 35.6%
- Insiders participated significantly more than pro-rata at 20%
- Market Capitalization: ~C$54 million
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GMP Securities: Steve Butler
- Rated “Buy”
- Target price of C$1.65/share
Paradigm Capital: Don MacLean
- Rated “Speculative Buy”
- Target price of C$2.50/share
Clarus Securities: Jamie Spratt
- Rated “Speculative Buy”
- Target price of C$1.75/share
BMO Capital: Andrew Mikitchook
- Rated “Buy”
- Target price of C$2.00/share
Eight Capital: Craig Stanley
- Rated “Buy”
- Target price of C$1.60/share
PI Financial: Gary Sidhu
- Rated “Buy”
- Target price of C$2.05/share
IAMGOLD 35.6% FRANKLIN 8.7% INVESCO 3.0% 3 OTHER INSTITUTIONS 4.3% INSIDERS 16.1% OTHER 32.3% COMMON SHARES 92.60 M FULLY DILUTED 100.99 M
Source: Public Company filings, BMO Capital Markets, INV Metals Notes: 1. FS: Feasibility, PF: Pre-Feasibility 2. All NPV figures in US Dollars with the exception of SBB and VIT, which are denoted in Canadian Dollars
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INV-TSX
Source: Consensus analyst NAV estimates from BMO Capital Markets 0.19x 0.21x 0.21x 0.27x 0.43x 0.45x 0.45x 0.56x 0.68x 0.71x 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 INV Metals Falco GoldQuest Belo Sun Continental Victoria Dalradian Sabina Midas Lundin Gold
P/NAV vs. Developer Peers
INV FPC GQC BSX CNL VIT DNA SBB MAX LUG
Stage1
PF FS PF FS FS FS FS FS PF FS
LOM Production (000 ozs)
1,681 3,339 656 3,527 3,492 1,884 1,360 2,319 4,006 4,500
AVG Annual Production (000 ozs) 150 219 109 205 253 200 130 198 337 300 Cash Cost ($/oz)
$ 510 $ 399 $ 669 $ 618 $ 411 $ 561 $ 556 $ 534 $ 568 $ 561
Initial Capex ($US/M)
$ 286 $ 802 $ 159 $ 298 $ 389 $ 289 $ 192 $ 317 $ 970 $ 717
Production Date
Q4/2020 H1/2022 H1/2019 H2/2019 H1/2020 H2/2019 n/a Q1/2021 n/a Q1/2020
Gold Price ($US)
$ 1,250 $ 1,300 $ 1,250 $ 1,200 $ 1,200 $ 1,250 $ 1,250 $ 1,150 $ 1,350 $ 1,250
After-tax IRR (%)
26% 15% 28% 26% 31% 30% 24% 24% 19% 16%
Market Cap (C$M)
$ 54 $ 142 $ 48 $ 163 $ 665 $ 178 $ 380 $ 446 $ 176 $ 586
After-tax NPV @ 5% ($US M)2
$ 301 $ 602 $ 203 $ 665 $ 860 $ 509 $ 301 $ 480 $ 832 $ 717
P/NAV
0.19x 0.21x 0.21x 0.27x 0.43x 0.45x 0.45x 0.56x 0.68x 0.71x
- New PFS provides
robust economics under large-scale mining category
- Substantially
improved economics from previous 2015 PFS under the medium-scale category (1,000 tpd)
- Metal Prices of
$1,250/oz Au, $20/oz Ag, $3/lb Cu
- Increased production
rate results in significantly lower
- perating costs per
tonne Mine Life ~12 years Nameplate Capacity 3,000 tpd Annual Gold Production 150,000 oz Gold Grade 4.98 g/t Gold Production 1.68 million oz Gold Recovery 90% Silver Grade 28.00 g/t Silver Production 9.83 million oz Silver Recovery 94% Au Equivalent Payable Ag 129,000 oz Copper Grade 0.29% Copper Production 71.30 million lbs Copper Recovery 97% Au Equivalent Payable Cu 119,000 oz Capital Costs (M$) Direct Costs $153.4 Indirect Costs 88.3 Contingency 44.2 Initial Capital $285.9 Sustaining 90.0 Reclamation and Closure 4.2 Total $380.1 Costs $/tonne Mining $36.30 Processing and Treatment 44.23 G&A 7.27 Total Operating Costs $87.80 Operating Cash costs $510/oz sold All-in Sustaining Costs* $590/oz sold All-In Costs* $778/oz sold
* Non-IFRS measures. See Non-IFRS Performance Measures on slide 2.
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- Over 20 years experience in the mining sector
- CPA, CA and former global mining institutional sales-person with RBC CM and base
metals mining associate with BMO CM
- Mining Engineer (P. Eng.) with over 40 years of experience in mine construction and
- perations
- Vast experience includes founder of Dynatec, COO of FNX and most recently CEO of DMC
Mining services.
- CPA, CA with experience in the mining industry
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- Mining Engineer with over 25 years of experience within Ecuador
- Previously was General Manager of IAMGOLD Ecuador, Chief Project Officer for Rio
Blanco and Chief Technical Administration Officer for RTZ in Ecuador
- Sociologist with over 20 years of CSR and political expertise in mining
- Previously was Manager Social Responsibility for IAMGOLD Ecuador, RTZ and
International Minerals
- Over 30 years mining and mining finance experience
- CFA, MBA, B.Sc. Geology, Past 10 years as Managing Director Global Mining Sales with
BMO Capital Markets
- Previously Corporate Director, Processing, Dundee Precious Metals
- Expertise in laboratory and pilot plant testing; plant design and commissioning; feasibility
studies; project and plant operations management
- President of PF Mining and Metals, a consulting company
- Former President, CEO and Director of Scorpio Mining Corp.
- Former Exec. Vice President and COO of Vale Inco from 2007 to 2009
- Executive Vice President, Corporate Development, Dundee Corporation
- CA and CBV with over 25 years of experience in corporate finance and valuation,
corporate management and professional accounting
- CEO and Director of Primary Capital Inc. and Director of Merus Labs International Inc.,
a specialty pharmaceutical company
- Former SVP of Quest Capital Corp. and VP, Investment Banking at Dundee Securities
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- Founder of INV Metals and Executive Chairman and Director of Search Minerals Inc.;
former CFO of Inco’s Canadian operations
- P. Geo. with over 45 years of experience in the mining business, inducted into
Canadian Mining Hall of Fame in January 2018
- Founder and Executive Chairman of TMAC Resources, developing the Hope Bay Gold
Belt in Nunavut, Canada
- Founder, Chairman and CEO of FNX Mining, transformed from a $5M market cap
junior explorer into a base and precious metals producer with a market cap of over $3B
- Co-founder and Chairman of Torex Gold Resources
- 20 years at the IFC, most recently as principal investment officer - mining group
- Roles with Standard Chartered Bank, Citicorp and CBS Television Network
- Ms. Weisman holds an MBA from the University of Chicago and a B.Sc. from the
University of Illinois
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INV-TSX
- Loma Larga Orebody is ~ 1.5 km long and is located within a 12 km by 6 km
alteration zone
- High sulphidation systems tend to cluster (e.g. Yanacocha, Mulatos)
12 km long alteration anomaly associated with Loma Larga
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SEVERAL KEY STRUCTURES ASSOCATED WITH THE DEPOSIT
- Caldera ring structure
- Rio Falso Fault system
- NW-SE Trending
structures NW–SE Trend Caldera ring structure N–S Rio Falso Fault System
- The NW part of the system
is an active structural area and is likely close to the main magmatic source
- Strike slip movement of
the Rio Falso N-S fault system allows the formation of the extensional sigmoidal structural features related with the hydrothermal alteration and mineralization
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Potential Porphyry Hole (122m @ 2.1 gpt)
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310 m 45 m 500 m 100 m
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