PROJECT UPDATES

Geology

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• Improved geological database incorporates corrections to vein tags and missing or corrected assay values  


• Completed 2,400 meters of infill drilling  Significantly upgraded resource, delivering 77 months of P&P reserves in FS mine plan

Mining

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• Strategic change to a resue mining method, which historically provided lower dilution than other available methods at the Revenue-Virginius  


• Two series of resue mining test stopes supported geotechnical, dilution and productivity estimates  


• Underground rehabilitation focused on infrastructure and logistics  


• Optimization of detailed development plan and stope design for full FS Life of Mine sequencing, costing and labor allocations based solely on P&P reserves  


• Costing supported by unitized activity-based, bottoms up analysis

Processing

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• Two separate series of metallurgy variability tests completed by FLSmidth for FS level confirmation of expected recoveries  


• Final detailed engineering and ‘for construction’ drawings on all process flow completed by Barr Engineering, as well as bottoms up costing for operations  


• Enhanced flowsheet to handle higher mill feed head grade  


• Mill to produce lead concentrate with high precious metal content and a zinc concentrate

Product Marketing

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• Concentrate expert Bluequest conducted an independent study on concentrate marketing and freight terms, which confirmed long-term pricing

Capital

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• Receipt of all major engineering and construction contract bids based on ‘for construction’ final engineering and quotes for all capital equipment.

Staff & Site Operations

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• Reset operations and replaced senior staff; senior roles filled with local or relocated managers 


• Added key technical support staff to complete comprehensive analysis & pre-production activities 


• Significant safety culture change; developed a new relationship with MSHA  


• Environmental improvements focused on water management & permits 


• Targeting minimal footprint (installing a long-term passive water treatment system; tailings and waste rock to be sold as road aggregate.)  


• Site preventative maintenance and new finance/

administrative/ warehouse systems built out for operations