Solum conducted a Preliminary Economic Assessment (PEA) for the El Crestón Project located in the northwest of the state of Sonora, Mexico. This evaluation was prepared under the guidelines of Canadian National Instrument N 43-101.
The development of the project includes an underground mining operation to produce Ag, Zn and Pb through a flotation process and is located within the magmatic-hydrometal deposits, hosting deposits of gold-based metals associated with hydrothermal breccias, replacement bodies of carbonates, skarn, and magnetism-related vein systems of the Laramide age.
The Mineral Resource Estimate (MRE) was established from an ore deposit consisting of individual mineralized veins, ten of which have been identified, including mapping, sampling and drilling as part of the first exploration efforts to identify the extent of historical development and outline objectives for further exploration. This assessment considered a total mineral resource composed of measured, indicated and inferred (M+I+I) mineral classes combined, as recorded by Solum.
The economic analysis completed as part of this PEA incorporated the total resource to provide a directional assessment of potential future value to support investment decision making. One of the main objectives of a planned study at the PFS level is to increase the relative proportions of measured and indicated resources to increase the level of confidence in the feasibility of the project.