Technical Visits

HISTORY: There is evidence of mining since colonial times, known as the Silver King. In the 1940s, some mineral extraction activities took place in Tules, which was transported to Zacualpan for smelting.

BACKGROUND: In October 2000, through a partnership with Dowa Mining and Sumitomo Corporation, the Rey de Plata mine (currently CAPELA) began operations, with a milling capacity of 360,000 tons per year. Peñoles owned 51% of the shares, but suspended operations at the end of 2001. however, operations were suspended in late 2001. Peñoles acquired all the shares from its minority partners in December 2004, and drilling operations resumed in 2008. In 2011, an initial mineral resource estimate of 18.8 million tons containing 15% zinc equivalent was made, and in 2012, construction of the new mining unit was approved by the Company's Board of Directors. Exploration work in 2013 increased the mineral resource to 25.2 million tons of ore grading 15.7% zinc equivalent, with improved economic prospects for the mining operation. The unit began operations in 2020.

OWNER: Peñoles 100%

OPERATION: Opened in March 2020. This mining operation boasts the largest automated operations in the country. It includes an underground mine and beneficiation plant.

GEOLOGY: Geological conditions characteristic of the Guerrero Terrain. Rocks related to an Arch, formed at the base by a metavolcanic sequence (Fries C., 1960) defined as the Roca Verde Taxco Viejo Formation, overlain by a metasedimentary sequence with intercalations of tuffs (Esquisto Taxco Formation) present a low-grade regional metamorphism of greenschist facies; By lithological correlation they have been assigned an age of Lower Cretaceous (?); overlain in tectonic unconformity by powerful packages of limestones of the Morelos Formation, also of the Lower Cretaceous, and sandstones and shales of the Mezcala Formation of the Upper Cretaceous. These formations are partially covered by conglomerates of the Balsas Formation and volcanic rocks of the Tilzapotla Formation of the Lower Tertiary. Mineragraphic and fluid inclusion analysis showed that the mineralization in the Capela area (Rey de Plata) corresponds to a volcanogenic massive sulfide (MVS) deposit. REPORT OF THE GEOLOGICAL-MINING AND GEOCHEMICAL CHART CUERNAVACA SHEET E14-5 SCALE 1: 250,000 STATES OF MEXICO, MORELOS, GUERRERO, PUEBLA AND OAXACA. SGM.

DEPOSIT TYPE: Volcanic massive sulfides (MVS). It is located within a northwestern lineage of volcanogenic deposits from Tizapa in the north to Campo Seco in the south.

INSTALLED CAPACITY:4 million tons of ground ore per year. 82% capacity utilization.

PRODUCTION: Polymetallic unit producing three concentrates: zinc, lead, and copper. It produces 3,600 tons of concentrates of the three metals per day, plus bismuth.

RESERVES AND RESOURCES:8 million tons of ore.

MINE LIFESPAN: 14 years (2023).

NUMBER OF EMPLOYEES: 1,100 (20% women and 80% from Guerrero).

SOCIAL COMMITMENT: Average investment of three million pesos annually in social projects: infrastructure, community development, and environmental protection programs.