Regarding the high grade zone where they have potential for a possible starter pit. - Based on our initial discussions with management, we believe that a
7,000 tpd throughput operation using conventional flotation to produce a copper
concentrate could be developed at La Joya producing roughly 3.5 million ounces of silver,
17,600 ounces of gold, and 22.7 million pounds of copper per year. Based on a mineable
resource of 20.4 million tonnes grading 60 g/t silver and 0.30 g/t gold with development
capital of US$150 million, we estimate an after-tax NPV (10%) of US$239 million, using
Canaccord Genuity’s commodity price deck.