The Project's quality assurance/quality control ("QA/QC") program was monitored by independent consultant Dr. Bruce M. Davis, FAusIMM of BD Resource Consulting, Inc. Logging and sampling were completed at Lumina's secure facility located at the Project. Drill core was mechanically split on site before being sent to either ALS Chemex's or Alex Stewart Argentina's preparation facilities in Mendoza, Argentina. Lumina established a QA/QC protocol that comprised the use of reject duplicates, standards, and blanks inserted into the sample batches at regular intervals. Fine material duplicates were inserted during sample preparation (independent from the assay laboratory) by splitting of the pulps. A range of copper-gold-molybdenum standard reference materials (SRMs) of suitable matrix composition, together with blanks, were inserted by Lumina during the core sampling procedure. The structure of this QA/QC program follows accepted industry standards. Irregular or suspect results were addressed in a timely manner in order to ensure the integrity of the database. The results of this QA/QC program indicate that the Project's database of sampling, analytical and test data is of sufficient accuracy and precision to be used for the generation of mineral resource estimates.
Floating cone analyses were used at varying copper prices to determine the best sequence for potential economic development. The floating cone run used for the ultimate pit was based on a copper price of $2.00/lb, gold price of $1,100/oz, and a molybdenum price of $12/lb. The resulting pit limits were then used to develop the Project's mine plan and production schedule, as well as total waste. This mine plan resulted in a LOM stripping ratio of 1.57:1.
The following table shows the classification of the mill feed that forms the basis for the mine plan and production schedule used in the PEA:
---------------------------------------------------------------------------- Classification of Mill Feed - PEA Production Schedule ------------------------------------------------------------ Tonnes Cu Mo AuClassification (Millions) (%) (%) (g/t)----------------------------------------------------------------------------Indicated 1,545 0.46 0.013 0.09----------------------------------------------------------------------------Inferred 106 0.43 0.005 0.09----------------------------------------------------------------------------
The oxide gold mineral resource estimate defined within the Project's leached cap was treated as waste in the PEA production schedule. Metallurgical test work completed to date on the oxide gold resource has been limited. Preliminary test results indicate, however, that future studies should be considered and performed in sufficient detail to support an economic analysis.
Mining & Processing
The proposed Project will utilize conventional open pit mining methods and assumes a concentrator throughput of 120,000 tonnes per day (43.2 million tonnes per year) for an initial seven year period. In year eight, production is forecast to increase to 180,000 tonnes of throughput per day (64.8 million tonnes per year), with the addition of a third mill and flotation line, for the remaining 21 years of the mine's life. The increase in throughput corresponds with a decline in head grade as higher grade supergene mineralization is replaced by lower grade primary mineralization as the predominant material mined.
