Issue link: http://resourceworld.uberflip.com/i/392638
o c t o b e r / n o v e m b e r 2 0 1 4 www.resourceworld.com 17 Block to the Sinaloa Graben (expected to be completed in 45 days). Phase II would likely involve the installation of a crush- ing/conveying system, although this does not currently meet the required five-year payback threshold for a go-ahead (capital cost potentially $15 million). • A portion of costs in 2013/2014 is likely related to the expansion and transition to long-hole and may not recur when the operation is at steady state. • Use more self-generated hydro power. The full scope of the Phase 2 Las Truchas expansion involves a doubling of the cur- rent hydro facility and would be sufficient to meet power requirements at 3,000 tpd. The Phase 2A expansion of the current power house is under commissioning and is expected to add 50% to current hydro generation. The 2014 exploration program is cur- rently underway, with over 80,000 metres budgeted including 45,000 metres of mine and exploration drilling focused on expanding mineralization in currently mined veins such as Victoria and Roberta in addition to drill testing newer veins such as the Perez vein. As of the end of August, approximately 50,000 metres had been completed in total, although most drilling undertaken to date appears to be delineation drilling. The Perez vein is one of the key targets in 2014, since drilling last year indicated the potential for sig- nificant grades and thicknesses (including intercepts of 12 g/t gold and 2,109 g/t sil- ver over 3.2 m and 7.4 g/t gold and 528 g/t silver over 11.9 m). With land access issues now resolved, drilling is expected to commence in October. We expect that the conclusion of the 2014 drill program and the incorporation of the results could drive a meaningful reserve/resource increase with the year-end update. n Eric Hoesgen and Dennis Hoesgen can be reached at 604-643-7705 or HIP@Canaccord. com. Dennis Hoesgen and Eric Hoesgen are Senior Investment Advisors with Hoesgen Investment Partners (HIP) at Canaccord Genuity wealth management, a division of Canaccord Genuity Corp, Member-Canadian Investor Protection Fund. The information contained in this article is drawn from sources believed to be reliable, but the accuracy and completeness of the information is not guaran- teed, nor in providing it does HIP, Canaccord Genuity Corp, or its subsidiaries, or affiliated companies, assume any liability. This infor- mation is current as of the date appearing in this article, we do not assume any obligation to update the information or advise on fur- ther developments relating to these securities. This report should not be considered personal investment advice or a solicitation to buy or sell securities. Canaccord Genuity and hold- ings of its respective directors, officers and employees and their associations, from time to time may buy or sell any securities men- tioned herein. The views expressed are those of the authors and not necessarily those of Canaccord.