Head Office

Production

The team at the completed gravity extraction plant

The team at the completed gravity extraction plant

bulletIn February 2012, the Company commenced large scale mineral extraction and open pit bulk-sampling over the Discovery Trend corridor. The ongoing bulk-sampling operation is intended to evaluate the grades, continuity and characteristics of the gold mineralization, and to produce gold doré from sampling to generate positive cash flow from the exploration program. To date, the processing operations have been limited to higher grade vein mineralization, milled and processed using centrifugal and gravitational methods, followed by smelting of doré.

 

bulletIn June, 2014, the Company commenced construction of a heap leach facility to expand the processing operations to lower grade and disseminated mineralization.

 

bulletThe Company received an expanded environmental permit for heap leach operation on February 6, 2014. Four reusable leach pads with a total capacity of 28,000 tonnes (per cycle) were constructed along with an on-site desorption plant.

 

bulletTo date, bulk-sampling has proceeded over 1,000 m of the Discovery Zone, excavated to as much as 25 m depth. Current development work includes continued lengthening and deepening of the open pit to expose and test new mineralization. Mine-scale mapping, channel-sampling and gold assays are conducted at regular intervals along each 3 m deep mine bench level. Channel sample assays are completed primarily at the Company’s onsite fire-assay lab, with control assays repeated by an external certified laboratory.

 

The 100% LAT owned gravity plant and fire assay laboratory have been in operation since February, 2012

The 100% Company owned gravity plant and fire assay laboratory have been in operation since February, 2012

Results of the bulk sampling program show that mineralization consists of narrow veinlets with coarse gold, though a significant volume of low-grade disseminated gold mineral has also been identified that was not prominent in exploratory drilling. The coarse gold veins typically occur as 2 m to 10 m long, 5 cm to 1 m wide shoots of high-grade mineralization (> 3 gpt average but individual shoots can exceed 100 gpt) surrounded by a lower grade halo (0.5 -1 gpt). The ratio of low-grade to high-grade tonnage is approximately 10 to 1, signifying that the halo could significantly increase the resource potential of the trend. Bulk sample testing also demonstrates that mineralization is more continuous than reflected in exploratory drilling, and that although the shoots are typically narrow with pinching and swelling character, they demonstrate continuity along the trend. Compilation of bulk-sample and drill data indicates that gold grades tend to improve with depth in the first 100 m from surface.

 

Due to chronic low recoveries it was decided to suspend mining operations in October r 2015 and engage consultants to provide guidance on reconfiguring the mill to improve recoveries.

 

The technical study for the reconfiguration of the gold processing plant was developed with John T. Boyd Company (“Boyd”), after the Boyd engineering and metallurgy team visited the mine in December 2015 to assess the most cost effective way to increase gold production at the mine. The initial goal is to double the throughput of raw material and increase production to 300 ounces of gold per month.

 

Boyd’s recommended equipment changes for the existing processing facility will continue to have application to processing all of the expected future feed sources. New feed sources will require only minor additions at the beginning of the process, as feed sources change.

 

Additional sources of tailings, saprolite and low grade material have been identified.

 

For the initial resumption of operations which will be complete by October 2016, the company intends to reprocess 85,000 tonnes of existing tailings grading 0.84 g Au per tonne, followed by processing of low grade stockpiles grading 0.48 g Au per tonne.The reconfiguration of the plant will allow for the efficient processing of low grade ore otherwise considered uneconomic. The entire operation has been designed to move 95% of the raw feed through pumps and pipes to greatly reduce per-tonne operating costs.

 

The Boyd recommendations include de-sliming, reconfiguration of the gravity circuit, conversion of the heap leach pads to a vat leach system, along with various upgrades to the carbon loading and stripping circuits. Based on Boyd’s professional experience and LAT’s empirical data, these changes are expected to significantly improve recoveries to approximately  90%.

Exploration

Exploration Map Locations

Exploration Map Locations

bulletThe Paso Yobai gold project area consists of 15,020 hectares of mineral rights located near the town of Paso Yobai in the Department of Guairá, Paraguay, approximately 160 km east of the capital city of Asuncion. The project is comprised of two concession groups: the ‘Independencia Mine’, which is a permitted mining concession 99% owned by the Company (6,596 hectares), and the 100% owned exploration licence claims (8,424 hectares) over the ‘X-Mile Trend’ geologic feature.

bulletThe project is an advanced exploration prospect defined by: 18,690 soil samples; 28 extensive mechanical exploration trenches, 1,000 m of continuous bulk-sampling excavation, and extensive geophysical data including comprehensive airborne electromagnetic and magnetometer surveys, 1,100 line-km of detailed ground magnetometer surveys, 106 line-km of CSAMT surveys, and 55 line-km of induced polarization/resistivity surveys, in addition to 11,300 m of diamond drilling.

Paso Yobai: Discovery Trend Summary

bulletThe Company has delineated an extensive vein-like structure denoted the Discovery Trend, where gold values occur from surface to greater than 100 m depth, and extend over 2,750 m length within the fully permitted Independencia Mine concession. The trend features extensive mafic dykes with elongate zones of disseminated gold mineralization, frequently interspersed with high-grade shoots notable for abundant coarse gold. The bounding sandstones are often altered and may host low-grade mineralization.

bulletThe Discovery Trend remains open to the northwest and to depth. The Company is also investigating additional gold occurrences proximal to the trend, within the permitted mining concession.

bulletConventional exploration work continues along the northern arm of the Discovery Trend including trenching and drilling on the relatively unexplored Northern Arm of the trend.

 

Paso Yobai: X-Mile Trend Summary

bulletThe X-Mile Trend is a gold geochemistry feature extending 14.8 km in length, located 3.5 km northeast of the Discovery Trend. X-Mile Trend mineral targets do not appear to be confined to linear, steeply-dipping, altered mafic dikes within bounding sandstones, thus differing in configuration from the Discovery Trend. Airborne magnetic data indicate abundant magnetic mafic rock below the full extent of the X-Mile Trend, suggestive of large formations of intrusive host rock that could be receptive to high-grade gold emplacement. Due to the extent and prominence of the gold targets located along the trend, this area is the primary focus of the Company’s exploration effort.

The majority of the large surface gold anomalies have been imaged to 600 m depth advanced geophysical surveys including 106 line-kilometres of Controlled Source Audio-frequency Magneto Telluric surveys (“CSAMT”) and 55 line-kilometres of gradient-array Induced Polarization (IP).

Geophysical targets correlating to high gold geochemistry values were detected at the Moroti, Tacurú, Cresta, Ycua Pora and Kaaguy prospects located along the X-Mile Trend, and at the Sudetia Target and Discovery Zones, located along the Discovery Trend.  Each of these targets is large 500m x 1000m.

Drilling and trenching have already confirmed the Tacurú Block is an important gold discovery on the X-Mile Trend: Trench TRT-1 averaged 3.8 gpt gold over 30.55, twelve diamond drill holes totaling 1,712 m have been completed to a maximum depth of 115 m.

All 12 initial drill holes intersected gold mineralization on 1500m x 2000m Tacurú Zone, including 94.6 gpt over 2.6m at 34 m depth; 107.7 gpt over 3.3m at 80m, open at depth and laterally.

 

bulletThe Company will continue to investigate all six targets through modelling, ground follow-up and drilling. The new exploration drilling program began at the end of Septemrber, employing the Company’s own drill and staff.

 

Itapoty Diamond Property

bulletThe Itapoty diamond property is located in Paraguay, approximately 120 km north of the Company’s Paso Yobai Gold Project. Geologically, this area is part of the diamond rich Alto Paranaiba Igneous Province extending south from Brazil.

bulletSince 2008, the Company has Explored 225,000 ha for diamonds, releasing less prospective ground to focus on the core 56,000 ha area of greatest interest.

bulletTo date, the Company has documented 78 diamonds recovered from a programme totalling 380 samples across all the project concessions. Approximately 11% of all stream sediment samples returned diamonds; a very high success rate. Many Kimberlite Indicator Minerals (KIMs) were also recovered in this sampling over the combined concessions, including numerous chromium spinels, ilmenites and three G9/G10 garnets. No diamond source or host rocks have yet been identified on the project.

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