San Nicholas Properties
The San Nicolas properties include assets and concession rights on properties in excess of 64 hectares that encompass the Cosinsa Mill and the San Nicolas Mine Project.
The San Nicolas Mine Project is just north of Gold Fields’ Cerro Corona Gold Mine. One of the concessions, encompassing 24 hectares, is just east of Buenaventura’s Tantahuatay Gold Mine. The concessions include the San Nicolas Mine and other prospective properties within a few kilometers of that mine. The San Nicolas assets also include ownership of the 24 hectare property upon which the Cosinsa Mill sits.
The Cosinsa Mill had been used in the past to process oxide mineralization from the San Nicolas Mine over the past few decades. The owners of the San Nicolas Project mined and processed surface and underground oxide gold, silver, copper, lead, and zinc mineralization from the mine, and developed extensive underground workings including five drift levels, each extending as much as 1,000 meters in length. A number of raises are included in the development that extends to a depth of approximately 200 meters. Because of the topography, most drifts, including the lowest level, daylight to surface.
The mine operated until January of 2016 when it closed due to technical and financial issues as the attempt was made to transition from oxide production to sulfide production. The transition would have required a new mill and the company was unable to acquire financing. Western Troy has received estimated resource data from the historical records from the mining operation and these will be studied and disclosed in the planned NI43-101 Technical Report.