Azuay Gold Project, Ecuador

The Azuay project located Azuay Region south-west Ecuador. project owned EnviroGold entered into agreements privately held companies progressively earn 65% ownership June 2012 $6.5m.

The property includes adjacent underground mines named Pinglio Papercorp occupy 700ha mined scale decade.

SBM VSI5X Impact Crusher, VSI Impact Crusher, PE Jaw Crusher, JCE Jaw Crusher

The $92m project involve expanding mines 100,000oz mid 2014. proposed rate increased 300,000t/year following revised scoping study.

The development carried phases.

Construction commence mid 2012 annual production 50,000oz expected mid 2013.

The mine estimated 14-year life.

Reserves

The deposits estimated host combined resource approximately 4Mt grades 10g/t 12g/t gold.

Geology

The deposit lies within centre highly mineralised belt. Papercorp Pinglio deposits host network veins. Within Papercorp deposit veins segmented into groups lower Papercorp upper Papercorp distanced 400m laterally 150m elevation. Veins either flat-lying 20° dip moderately dipping 20° 65°.

"The property includes adjacent underground mines named Pinglio Papercorp occupy 700ha."

Five tunnels - Cascada Reina Rosario Reina Cisne Nueva Union Fortuna - access veins lower Papercorp zone. Access upper Papercorp veins provided via tunnels namely 12 de Abril Condor Oro Bellavista.

SBM VSI Impact Crusher, PE Jaw Crusher, JCE Jaw Crusher, Symons Cone Crusher

The Cascada tunnel accesses flat-lying veins dips varying -8° -36° strikes ranging 8° 278°. veins 0.23m 0.54m width rich average grades. Nueva Union Fortuna tunnels exploit veins different depths. thick veins including flat-lying vein -25° dip relatively steeper vein -48° dip demonstrate veins Papercorp thicker steeper.

SBM PE Jaw Crusher, JCE Jaw Crusher, Symons Cone Crusher, Hydraulic Cone Crusher

The Reina del Cisne Reina del Rosario-accessed veins complex mixed style mineralisation. majority veins flat-lying hosted -17° -38°. veins grouped into stacked sequences. grade width veins range 4.15g/t 47.49g/t 0.42m 0.87m respectively.

The lower Papercorp contains mostly flat-lying veins (-25°). steep veins dip -49° -58° hosted closer surface. 12 de Abril tunnel accesses flat-lying vein systems plunge -19° -35° respectively. veins range 0.23m 0.78m width strike 70° 180° include grade ore.

SBM JCE Jaw Crusher, Symons Cone Crusher, Hydraulic Cone Crusher, Spring Cone Crusher

The Condor tunnel designed sub-vertical veins moderately wide (0.78m 0.8m) host relatively grades. Bellavista vein system flat-lying fault gouge width averaging 1.06m. system average grade 14.83g/t.

"Two bazooka-style diamond drills used."

At Pinglio deposit mineralisation grouped into zones namely Ponderosa Perez / S&S. mineralisation similar style Papercorp includes narrow sheeted veins within flat-lying faults gouge zones. diatreme breccia litho hosts Pinglio veins differentiates deposits.

SBM Symons Cone Crusher, Hydraulic Cone Crusher, Spring Cone Crusher, Jaw Crusher Mobile Crusher

The Perez / S&S zone hosts Perez 2 structure flat-lying prominent structure moderate grades average width 1.01m. structures namely Perez 1 S&S not extensive believed splays extensions Perez 2 structure.

The Ponderosa zone hosts bulk mineralisation Pinglio. includes different veins related splays stacked sequences. Named San Antonio El Dorado 1 2 La Ponderosa 1 2 La Palmas veins range width 0.62m 0.93m spectacular grades varying 8.88g/t 39.4g/t.

Mine development

Phase mine development involve construction relatively cost gravity plant. $35m extract milling 260,000t/year underground operation. Phase include construction annual production 50,000oz.

SBM Hydraulic Cone Crusher, Spring Cone Crusher, Jaw Crusher Mobile Crusher, Cone Crusher Mobile Crusher

During phase two Albion CIL circuits installed 2014 2015. circuits cost $50m recover refractory ore. rate increased 300,000t/year production 100,000oz/year phase 2.

Processing

Approximately 60% recovered gravity separation. remaining returned carbon leach circuit doré bars.

SBM Spring Cone Crusher, Jaw Crusher Mobile Crusher, Cone Crusher Mobile Crusher, Impact Crusher Mobile Crusher

Multiple underground mines feed centralised milling plant. milled delivered via 10km slurry pipeline gravity CIL circuits.

Drilling

"A $92m expansion result mines producing 100,000oz mid 2014 onwards."

Historical drilling Azuay conducted 1989 1993 Placer Dome. involved approximately 9,000m RC drilling extensive chip sampling mapping mineralisation.

SBM Jaw Crusher Mobile Crusher, Cone Crusher Mobile Crusher, Impact Crusher Mobile Crusher, Multi-Crushing Mobile Crusher

To confirm proposed target Papercorp Pinglio mines EnviroGold commenced underground drilling programme February 2011. drilling programme carried phases. phase one deposits drilled 100m centres. results positive deposits drilled 50m centres phase two. vein structures series 100m 300m holes completed across deposits.

SBM Cone Crusher Mobile Crusher, Impact Crusher Mobile Crusher, Multi-Crushing Mobile Crusher,

Surface drilling June 2011. veins upper Papercorp veins Pinglio deposit surface-drilled. total cost exploration estimated $4.5m.

Two bazooka-style diamond drills used drill core holes diameter within limited space. January 2011 rigs related arrived site. exploration camp construction drilling crews helpers geologists office facilities management resource definition drilling.

Financing

The project funded using cash generated Las Lagunas project Dominican Republic. Las Lagunas project expected silver production January 2012.

---

<< Bellekeno Silver Deposit, Canada Anita Project Niobium-Tantalum Mine, Canada >>