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Doré Refinery
After grinding the crushed rock to between 65 and 70 micrometres in the oxide circuit, the Merrill-Crowe process recovers precious metals from the pregnant solution. Precious metals are smelted into doré bars that are then trucked off-site for final refining.
Geology & Mineralization
Mineralization at La Parrilla occurs in veins and replacement deposits, the locations of which are structurally controlled by pre-existing faults, fractures, and bedding planes.
Veins can be either open space filling, forming massive sulphide and breccia veins, or fault-related, consisting of matrix-supported breccias or gouge containing disseminated sulphides and oxides. The La Parrilla deposits contain primary sulphides. Due to supergene oxidation, the primary sulphides in the upper parts of some deposits have been altered.
Infrastructure, valued at US$150,000,000:
The supporting infrastructure for the operation is located near the plant and includes underground workings and portals, administrative offices, sample preparation and assay laboratory, tailings facilities, maintenance buildings, cafeteria and other employee housing. The maintenance department operates from several repair shops and warehouses located at the plant site and adjacent to the mine.
Mineral Resource Estimate
Mineral Resource Estimates have been completed for 22 veins of the Rosarios, San Marcos and Quebradillas zones comprising both oxide and sulphide mineralization.
The validated data effectively used in the Mineral Resource estimation includes 2,025 core samples (1,271 metres), from 392 different boreholes piercing the mineralized structures of La Parrilla, and 9,676 chip samples (5,148 metres), taken from 3,190 underground channels by FMS within these structures. The solid models representing 22 veins were built by FMS using implicit modelling guided by the borehole geological logging, core and channel samples grades, and, where available, underground mappings.
Processing Plant
The metallurgical processing plant at La Parrilla consists of parallel 1,000 tpd flotation and 1,000 tpd cyanidation leach circuits to treat both oxide and sulfide ores for a total capacity of 2,000 tpd, using a conventional flowsheet.
Both ore types are polymetallic, containing silver as their principal economic component as well as significant amounts of lead and zinc and minor amounts of gold. Oxide ore is processed by cyanide leaching to produce doré bars while sulphide ore is processed by differential flotation to produce a silver-rich lead concentrate and a zinc concentrate.
Quebradillas Underground:
Quebradillas is one of the 3 key targets areas on the project (including Rosarios and San Marcos). Drilling for 2023 for the area includes 3,000 m of drilling to test the strike and down-dip extensions of three key zones: Cuerpo 460, Norte-Sur, and San Nicolas.
Cuerpo 460: The 460 Replacement vein has a known strike length of 425 m. The zone is mineralized for a vertical extent of 570 m, and its thickness varies from 0.1 to 8.5 m.
Norte-Sur:
The N-S vein has a known strike length of 125 m and is mineralized for a vertical extent of 465 m, and its thickness varies from 0.25 to 5.0 m.
San Nicolas:
The San Nicolas vein has a known strike length of 525 m. The vein is mineralized for a vertical extent of 470 m, and its thickness varies from 0.3 to 1.8 m.
Rosarios Mine
Rosarios is one of the three key project areas (including San Marcos and Quebradillas Underground). Roasarios and Cuerpo 340 are slated to receive 3,000 metres of drilling in 2023 to test the east, west and central down-dip extensions. Additionally, no drilling has been completed at depth. The Rosarios vein has a known strike length of 2,000 m. Mineralization extends vertically for 900 m. Thickness varies from 0.2 to 14 m. Cuerpo 340 resource has a strike length of 340 m and extends vertically for 260 m and hosts an average grade of 226 g/t AgEq.
Rosarios Vein:
The Rosarios vein has a known strike length of 2,000 metres. The mineralization extends vertically for 900 m, and its thickness varies from 0.2 to 14 m. The vein sits roughly at the northern contact of the granodiorite stock and the Indidura limestone. The vein pinches and swells; economic grades can occur either at the footwall or at the hangingwall of the main controlling structure. The mineralogy of the vein consists of galena, sphalerite, acanthite, native silver, pyrite, pyrrhotite, arsenopyrite, anglesite, willemite, quartz, calcite, and fluorite.
San Marcos Vein:
San Marcos is one of the three key target areas (including Rosarios and Quebradillas Underground). The zone is expected to receive 1,000 metres of drilling in 2023. The San Marcos vein has a known strike length of 650 m. The vein is mineralized for a vertical extent of 350 m, and its thickness varies from 0.5 to 17 m. The last level developed at San Marcos (Level 1789) had a vein strike of 37m, width of 3.6m and an average grade of 465 g/t AgEq. Drilling and channel sampling suggest mineralization continues beyond current resource modelling.
Silver Storms La Parrilla Project
Overview
La Parrilla is located in Durango State, Mexico, approximately 76 kilometres southeast of Durango's capital and comprises 41 contiguous mining concessions in good standing, covering 69,478 hectares.
The property was in production continuously between 2005 and September 2019, when it was placed on care and maintenance. During this period, the complex collectively produced 34.3 million silver-equivalent ounces. La Parrilla hosts five underground mines surrounding the mill, including Rosarios, La Rosa, San Jose, Quebradillas and San Marcos, and the Quebradillas open pit. Golden Tag owns 100% of The La Parrilla Project, which was acquired in August 2023 from First Majestic Silver.
The Core Shed
Core boxes from ongoing drilling are transported and delivered to the core shed by the drillers. The condition of the core boxes and core is checked by one of the exploration geologists at the core shed upon receipt. Logging of drill core and the determination of sample intervals are performed by Silver Storm project geologists. Trained assistants are responsible for core splitting and sampling as per the project geologists’ direction.
Tailings Storage Facility:
Tailings from both the oxide and sulphide (totalling 2,000 tpd) circuits are filtered separately before being dry‐stacked in the tailings storage facility, which currently holds approximately 6.5 million tonnes of capacity, sufficient for nine years of operations at a throughput rate of 2,000 tpd.
Vacas Replacement Vein:
The Vacas replacement vein has a known strike length of 200 m. The zone is mineralized for a vertical extent of 400 m, and its thickness varies from 0.2 to 18.0 m. The replacement body is hosted by the Indidura Formation and is concordant with a fault zone running along bedding planes. This is thought to be a favourable structural setting for replacement mineralization.
Crushing Circuit
The single crushing plant is a conventional three-stage circuit that batches sulphide ore and oxide material to feed the Oxide and Sulphide circuits. The primary crushing stage crushes the rock to 2 1/2” particle size, approximately the size of an egg. The secondary stage crushes the rock to three quarters of an inch. And the tertiary crusher reduces the rock down to ⅜ of an inch, or about the size of a pea.
Crushing Circuit
The single crushing plant is a conventional three-stage circuit that batches sulphide ore and oxide material to feed the Oxide and Sulphide circuits. The primary crushing stage crushes the rock to 2 1/2” particle size, approximately the size of an egg. The secondary stage crushes the rock to three quarters of an inch. And the tertiary crusher reduces the rock down to ⅜ of an inch, or about the size of a pea.
Doré Refinery
After grinding the crushed rock to between 65 and 70 micrometres in the oxide circuit, the Merrill-Crowe process recovers precious metals from the pregnant solution. Precious metals are smelted into doré bars that are then trucked off-site for final refining.
Geology & Mineralization
Mineralization at La Parrilla occurs in veins and replacement deposits, the locations of which are structurally controlled by pre-existing faults, fractures, and bedding planes.
Veins can be either open space filling, forming massive sulphide and breccia veins, or fault-related, consisting of matrix-supported breccias or gouge containing disseminated sulphides and oxides. The La Parrilla deposits contain primary sulphides. Due to supergene oxidation, the primary sulphides in the upper parts of some deposits have been altered.
Infrastructure, valued at US$150,000,000:
The supporting infrastructure for the operation is located near the plant and includes underground workings and portals, administrative offices, sample preparation and assay laboratory, tailings facilities, maintenance buildings, cafeteria and other employee housing. The maintenance department operates from several repair shops and warehouses located at the plant site and adjacent to the mine.
Mineral Resource Estimate
Mineral Resource Estimates have been completed for 22 veins of the Rosarios, San Marcos and Quebradillas zones comprising both oxide and sulphide mineralization.
The validated data effectively used in the Mineral Resource estimation includes 2,025 core samples (1,271 metres), from 392 different boreholes piercing the mineralized structures of La Parrilla, and 9,676 chip samples (5,148 metres), taken from 3,190 underground channels by FMS within these structures. The solid models representing 22 veins were built by FMS using implicit modelling guided by the borehole geological logging, core and channel samples grades, and, where available, underground mappings.
Processing Plant
The metallurgical processing plant at La Parrilla consists of parallel 1,000 tpd flotation and 1,000 tpd cyanidation leach circuits to treat both oxide and sulfide ores for a total capacity of 2,000 tpd, using a conventional flowsheet.
Both ore types are polymetallic, containing silver as their principal economic component as well as significant amounts of lead and zinc and minor amounts of gold. Oxide ore is processed by cyanide leaching to produce doré bars while sulphide ore is processed by differential flotation to produce a silver-rich lead concentrate and a zinc concentrate.
Quebradillas Underground:
Quebradillas is one of the 3 key targets areas on the project (including Rosarios and San Marcos). Drilling for 2023 for the area includes 3,000 m of drilling to test the strike and down-dip extensions of three key zones: Cuerpo 460, Norte-Sur, and San Nicolas.
Cuerpo 460: The 460 Replacement vein has a known strike length of 425 m. The zone is mineralized for a vertical extent of 570 m, and its thickness varies from 0.1 to 8.5 m.
Norte-Sur:
The N-S vein has a known strike length of 125 m and is mineralized for a vertical extent of 465 m, and its thickness varies from 0.25 to 5.0 m.
San Nicolas:
The San Nicolas vein has a known strike length of 525 m. The vein is mineralized for a vertical extent of 470 m, and its thickness varies from 0.3 to 1.8 m.
Rosarios Mine
Rosarios is one of the three key project areas (including San Marcos and Quebradillas Underground). Roasarios and Cuerpo 340 are slated to receive 3,000 metres of drilling in 2023 to test the east, west and central down-dip extensions. Additionally, no drilling has been completed at depth. The Rosarios vein has a known strike length of 2,000 m. Mineralization extends vertically for 900 m. Thickness varies from 0.2 to 14 m. Cuerpo 340 resource has a strike length of 340 m and extends vertically for 260 m and hosts an average grade of 226 g/t AgEq.
Rosarios Vein:
The Rosarios vein has a known strike length of 2,000 metres. The mineralization extends vertically for 900 m, and its thickness varies from 0.2 to 14 m. The vein sits roughly at the northern contact of the granodiorite stock and the Indidura limestone. The vein pinches and swells; economic grades can occur either at the footwall or at the hangingwall of the main controlling structure. The mineralogy of the vein consists of galena, sphalerite, acanthite, native silver, pyrite, pyrrhotite, arsenopyrite, anglesite, willemite, quartz, calcite, and fluorite.
San Marcos Vein:
San Marcos is one of the three key target areas (including Rosarios and Quebradillas Underground). The zone is expected to receive 1,000 metres of drilling in 2023. The San Marcos vein has a known strike length of 650 m. The vein is mineralized for a vertical extent of 350 m, and its thickness varies from 0.5 to 17 m. The last level developed at San Marcos (Level 1789) had a vein strike of 37m, width of 3.6m and an average grade of 465 g/t AgEq. Drilling and channel sampling suggest mineralization continues beyond current resource modelling.
Silver Storms La Parrilla Project
Overview
La Parrilla is located in Durango State, Mexico, approximately 76 kilometres southeast of Durango's capital and comprises 41 contiguous mining concessions in good standing, covering 69,478 hectares.
The property was in production continuously between 2005 and September 2019, when it was placed on care and maintenance. During this period, the complex collectively produced 34.3 million silver-equivalent ounces. La Parrilla hosts five underground mines surrounding the mill, including Rosarios, La Rosa, San Jose, Quebradillas and San Marcos, and the Quebradillas open pit. Golden Tag owns 100% of The La Parrilla Project, which was acquired in August 2023 from First Majestic Silver.
The Core Shed
Core boxes from ongoing drilling are transported and delivered to the core shed by the drillers. The condition of the core boxes and core is checked by one of the exploration geologists at the core shed upon receipt. Logging of drill core and the determination of sample intervals are performed by Silver Storm project geologists. Trained assistants are responsible for core splitting and sampling as per the project geologists’ direction.
Tailings Storage Facility:
Tailings from both the oxide and sulphide (totalling 2,000 tpd) circuits are filtered separately before being dry‐stacked in the tailings storage facility, which currently holds approximately 6.5 million tonnes of capacity, sufficient for nine years of operations at a throughput rate of 2,000 tpd.
Vacas Replacement Vein:
The Vacas replacement vein has a known strike length of 200 m. The zone is mineralized for a vertical extent of 400 m, and its thickness varies from 0.2 to 18.0 m. The replacement body is hosted by the Indidura Formation and is concordant with a fault zone running along bedding planes. This is thought to be a favourable structural setting for replacement mineralization.