Name of the Project
La Fortuna gold project.

Location
Durango, Mexico.

Client
Minera Almos.

Project Description
Minera Almos has reported positive preliminary economic assessment (PEA) results for the La Fortuna project. The PEA estimates average production of 43 000 oz/y of gold, 220 000 oz/y of silver and 1 000 t/y of copper.

La Fortuna has a five-year mine life based on an initial resource starter pit comprising two-million tonnes of ore grading 3.68 g/t gold, 20 g/t silver and 0.27% copper.

The mineralisation at the project extends close to surface and is amenable to conventional openpit mining methods using front-end loaders and trucks. All drilling/mining/crushing operations at the mine will be conducted by an openpit mining contractor.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value, at a 7.5% discount rate, of $103.8-million and an internal rate of return of 122%, with a payback of nine months.

Value
Preproduction capital is estimated at $26.9-million.

Duration
Not stated.

Latest Developments
Several opportunities have been identified to enhance the project’s economics, including:

• further exploration over the 6 200 ha site,
• additional step-out drilling to define additional extensions of current resources,
• metallurgical testwork to optimise the extraction process,
• a staged plant construction plan to further reduce the initial start-up capital expenditure,
• additional mine planning optimisation studies to evaluate opportunities to delay portions of early waste removal until later in the mine’s life,
• further optimisation studies to determine if a more aggressive use of ore sorting may offer additional economic benefits for the project, and
• trade-off studies aimed at optimising cutoff grades and the incorporation of additional milling capacity.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Minera Alamos, tel +1 416 306 0990, fax +1416306 0990 or email info@mineraalamos.com.