The data review was completed by
Recovery estimates were primarily based upon prior metallurgical test work from the Project. This review included considerations from the following quantity of bottle roll and column leach tests:
When recovery estimates of the individual deposits are applied to the Mineral Resource Estimate ('MRE') shown in the Santa Fe Project Technical Report, it results in weighted project-wide gold recoveries from oxide mineralization of 74.4% for gold and 29.0% for silver at a 1/2-inch crush size. Preliminary review of the data indicates little benefit to recovery from crushing finer than this.
The data reviewed included the results of a 1,860-ton crushed and agglomerated test heap of Santa Fe pit oxide mineralization. The heap was agglomerated with 5.5 kg/t cement addition yielding a 73.8% overall gold recovery, and 80.3% gold recovery on the flat surfaces for the 3/4' crushed test heap.
Operational data review indicates a total crushed oxide mineralization recovery of 65.5% over the life of the mine from 1988 to 1995. However, crush size seemed to vary throughout the life of the operation, ranging from 1-1/2 inches down to 5/8 inches towards the later stages of the mining operation. Consistent crushing at 1/2-inch should improve precious metal recoveries.
KCA believes that there is sufficient data available to establish recovery ranges of oxide gold and silver mineralization for inclusion in a Preliminary Economic Assessment ('PEA'). This is a result of previous operational data, and the amount of column leach testing available on the component that makes up the bulk of the resource (the Santa Fe pit resource).
In order to reduce risk for the Project, KCA recommends that two more agglomerated column tests on each of Slab and Calvada East oxide mineralization at 1/2' crush size be performed to confirm gold and silver recoveries for these areas where recovery data is sparse. KCA also recommends development of preg-robbing indices for the various types of mineralization in order to better understand metallurgical risks of the Project.
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