Macallum Group
© Macallum Group Ltd 2018
Tel: +61 (08) 6144 2444 Address:11 Moreau Mews, Applecross Western Australia 6153
Poopo Sulphide Plant & Nazareno Zinc Mine
Zinc Projects

Macallum (70%) and their local partner (30%) acquired a 100% interest in the Poopo sulphide processing plant on a

75 ha industrial site, with all infrastructure, in July 2016. The plant has been brought back into production from

April, 2017. Plant capacity will continue to be increased to 400 tpd with the aim of ramping up to producing +5,000

tpa of zinc (eq) in concentrate for direct sale. Further production increases beyond this level will be evaluated.

Poopo Sulphide Processing Plant

Summary

Acquired 100% interest in Poopo sulphide processing plant on 75 ha industrial site, with all infrastructure, in July 2016. Invested own funds to re-start the plant and are now producing a quality zinc concentrate being sold into a strong market. Executed concentrate off-take agreement with a global commodities trader. Expansion studies to increase zinc concentrate production to at least 10,000 tpa of zinc (eq) concentrate. Targeting further production upgrades. Legacy tailings storage facility has defined about 753,000t @ 2.17% zinc, 0.34% tin and 71g/t silver. A feasibility study to recovering this metal is planned.

Nazareno Zinc Mine

Summary

The Nazareno Mine is located on two valid mining titles of 650Ha, to the north east of the mining service centre of Oruro on the Bolivian Altiplano. The deposit is of the hydrothermal vein/breccia style, typical of the Bolivian Andes with the zinc bearing fluids exploiting and being deposited within pre-existing faults during the Paleozoic Era. Structural continuity and grade consistency tends to be strong in this style of deposit. The in situ zinc grade is approximately 12%, with the deposit averaging 2.6m in width, over a strike length of approximately 400m. The deposit is open laterally and down-dip. Drill out planned targeting down dip and lateral vein extensions to define +1 million tonne resource. Staged enhancement and redevelopment of the mine continues using industry best standards to provide improved operational efficiencies and additional mill feed source for the Poopo Plant. Ramping up to 150 tpd in stage 1 and 400 tpd in stage 2. 2018 diamond drilling program highly successful with all six holes intersecting zinc mineralisation below and along strike from the current limits of mining. The four holes down dip of the underground workings are shown in the following long section.
Nazareno

Current Status

Stage one, 150tpd plant refurbishment complete with operations and concentrate production resumed. Concentrate offtake secured with a global commodities trader. Plans in place for 400 tpd plant upgrade. Additional ore sources being sourced. Feasibility on expanding Poopo to +400 tpd, +10,000 tpa zinc metal (eq) in concentrate. Mine enhancement initiatives continue to be implemented to expand production capacity. MGL and their local partners have secured a strategically located, operating zinc plant and mine that is producing quality concentrate into an existing, high demand market. With zinc supply continuing to move into deficit, supply and demand fundamentals are expected to continue to drive an appreciating zinc price. Enhancing OHS&E processes. Training local personnel to more modern operating practice. Upgrading mining and haulage capacity at the Nazareno Zinc Mine. Extending the incline shaft and evaluating the development of a new vertical shaft. Minimal exploration completed over mining concession with multiple structures identified for future evaluation.

Poopo Sulphide Plant and Nazareno Zinc Mine

Annual blessing at the Nazareno Mine
Nazareno Zinc Mine long section, looking North. 2018 downhole diamond drilling results shown, along with an Exploration Target defined using underground face sampling data and the 2018 diamond drilling information. The potential quantity and grade of the Exploration Target is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if further exploration will result in the estimation of a Mineral Resource. The basis for the estimates of tonnage and grade include mine production records, diamond drilling, grab and channel samples from the mine.