Issue link: http://resourceworld.uberflip.com/i/912601
D E C E M B E R / J A N U A R Y 2 0 1 8 www.resourceworld.com 11 We see other targets at Los Filos that we consider attractive for further exploration that may not have had the scale to be of interest to Goldcorp. RW: The cross-section in the Leagold brochure shows that mineraliza- tion continues to depth. Is this deep mineralization (Bermejal deposit) of a sufficient grade for underground mining? NW: Yes, the grade of the measured and indicated resource in the Bermejal Underground deposit is 6.2 grams per tonne, which is higher than the cut-off grade for our current underground mining at Los Filos, which is 3.8 grams per tonne. RW: Will this deep mineralization add a significant number of years to the life of mine? NW: Based on the Preliminary Economic Assessment (PEA) completed in March 2017, the Bermejal Underground deposit has the potential to add 1.39 mil- lion ounces of gold production over an eight-year mine life. Since that time, we have added another million ounces of measured and indicated resources, there- fore we would expect to see a longer life. However, we need to complete the engi- neering and design work that is now under way in order to fully understand the potential for the Bermejal Underground to extend the mine life. RW: It appears you have made an effort to hire local workers. Is that correct? NW: Yes. About two-thirds of our work- force of 1,500 employees and contractors at Los Filos live in three local communities within a 10-kilometre radius of the mine. The majority of the rest of the workforce is Mexican, although not necessarily from the nearby towns. RW: Does Leagold have any Corporate Social Responsibility programs? NW: Absolutely; it's an important part of our success in the region. In addition to hiring locally, we source the major- ity of our procurement from vendors and suppliers in nearby communities, which injects about $9 million per year into the local economy. Our emphasis is on work- ing with the local communities to create competitive and sustainable businesses. These local services include contracting haul trucks, water trucks, waste collection, kitchen services, and facilities mainte- nance, to name a few. In addition, our land access agree- ments contribute another $14 million per year to the three local communities, plus another $1 million per year in social col- laboration agreements. These agreements support education, culture and traditions, environment, health, infrastructure, and vulnerable groups. We foster partner- ships to promote sustainable development through diversification of the local econ- omy – advice and support provided to communities to promote agriculture, live- stock, and fishing activities. n