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Elsa Tailings

Asset 1

Elsa Tailings Overview

Historical milling operations at Elsa started in the 1930s and continued until 1988. Over that period, the Elsa mill processed ore from ten major mines in the area, resulting in an estimated 3.67 million tonnes of tailings deposited at the Elsa tailings site. In 2009 sonic drilling was used to complete 283 drill holes in the Elsa tailings, with the objective of generating an estimate of mineral resources. The average thickness of tailings drilled was 2.3 meters.

Based on the March 2017 Preliminary Economic Assessment indicated mineral resources for the Elsa tailings have been estimated at 2.49 million tonnes at 119 g/t silver (9,526,000 total ounces of silver), 0.99% lead and 0.70% zinc. The Elsa tailings resource also includes an estimated 9,600 ounces of gold.

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