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REGIONAL NEWS - LATIN AMERICA 14 E&MJ; • OCTOBER 2017 www.e-mj.com Leagold Commences Development of Bermejal Underground Leagold Mining Corp. recently com- pleted the surface preparation and has commenced portal development for the 1,325-meter-long exploration ramp that will provide access to the high-grade min- eralization of the Bermejal Underground deposit in Mexico. The portal is located in a carbonate formation on the north side of the mined-out portion of the open pit. The $13 million capital budget includes a to- tal of 3,136 m of ramp and cross-cut de- velopment and two ventilation raises total- ing 560 vertical m that will be developed using a raise bore. A spur at the 650-m point of the main ramp will provide access to a test mining area on the southeastern part of the Bermejal Underground deposit and the mineralized body will be inter- sected in middle of half-year 2018. "We have been steadily advancing the development of the Bermejal Under- ground as an expansion project at our Los Filos mine, and the start of the portal and ramp is a significant achievement with- in our initial six months of ownership," said Neil Woodyer, CEO, Leagold. "The contribution from underground mining at Bermejal will add approximately 150,000 ounces per year (oz/y) to the operation and bring the combined production rate to 350,000 oz/y once fully operational." The exploration ramp will allow initial mining to begin in the test stope for the collection of a large-scale sample for met- allurgical testing and leaching on the exist- ing heap-leach pads. The main ramp con- tinues to the central portion of Bermejal Underground and will intersect mineraliza- tion in that area in late 2018. The design of the portal and ramp is fully dimensioned for eventual use as a production ramp and includes cut-outs for underground drilling. This development program provides the opportunity for drilling and mining over a strike length in excess of 1,200 m and along a vertical extent of more than 300 m of the Bermejal Underground deposit. The ramp will provide access to the eastern and central portions of the depos- it and will enable additional exploration, demonstrate the mine ability of Bermejal Underground, and advance the project to- ward the declaration of reserves. Leagold has selected Cominvi S.A. de C.V. as the portal and ramp development contractor. Cominvi currently provides con- tract mining and development services in the Los Filos Underground mine, which has the same host rocks and type of mineraliza- tion. The contractor was mobilized in Sep- tember, surface preparation of the portal area was completed and the first blast for the portal was detonated on September 25. Guatemalan Supreme Court Reinstates Escobal License Tahoe Resources reported that the Guate- malan Supreme Court issued a decision that reinstates the Escobal mining license of Tahoe's Guatemalan subsidiary, Minera San Rafael (MSR). This decision reverses the Supreme Court's preliminary decision to suspend MSR's license in connection with an action brought by the antimining organization, CALAS, against Guatema- la's Ministry of Energy and Mines (MEM). CALAS alleged that MEM violated the Xinca indigenous people's right of consul- tation in advance of granting the Escobal mining license to MSR. As part of its decision, the Supreme Court ordered MEM to conduct a consulta- tion under ILO Convention 169. Per the rul- ing, MEM has been ordered to consult with the Xinca indigenous communities within a certain geographic area and report results of the consultation to the satisfaction of the court within 12 months. Tahoe is seek- ing clarification from the Supreme Court on the specific geographical departments to be included within the scope of MEM's consultation. Although Tahoe believes that MEM complied with ILO Convention 169 before it issued the Escobal license, it said it will fully support MEM in any of its future indigenous engagement and will encourage MEM to involve independent ILO 169 ex- perts to assist in this process. The company expects that CALAS, the Xinca Parliament, and other interested parties may appeal the Supreme Court's ruling to the Constitutional Court and it is expected to rule on all appeals by the end of the year. While the Supreme Court ruling allows Escobal operations to commence imme- diately, the illegal roadblock at Casillas is ongoing, preventing an immediate restart of operations. "We are pleased that the Supreme Court of Guatemala has abided by legal Miners prepare to shoot the first round for portal development at the Bermejal mine, which is a ramp off of the Los Filos open-pit mine in Mexico.