Reserves and Resources

  • PUMPKIN HOLLOW MINERAL RESERVES

    Open Pit Mineral Reserves

    The current mineral reserve estimate for the open pit was disclosed April 16, 2019 and the related NI 43-101 Technical Report was filed on SEDAR in April 16, 2019, with an effective date of January 21, 2019.

    The tons, grades, and classification of the Mineral Reserves estimate in the Open Pit PFS mine plan are tabled below.

    Confidence CategoryOre (Mst)Average Ore GradesContained Metal
    Cu (%)Au (oz/st)Ag (oz/st)Cu (Mlbs)Au (Koz)Ag (Koz)
    Proven Mineral Reserves (North)75.40.650.0020.0709831515,302
    Proven Mineral Reserves (South)31.30.360.0020.045223481,420
    Proven Mineral Reserves (North + South)106.60.570.0020.0631,2061996,722
    Probable Mineral Reserves (North)147.40.480.0010.0551,4072158,086

    Probable Mineral Reserves (South)

    131.70.370.0020.0499772036,458
    Probable Mineral Reserves (North + South)279.10.430.0010.0522,38441914,544
    Proven and Probable Mineral Reserves385.70.470.0020.0553,59061721,266

    Note: Effective date of Open Pit Mineral Reserve is January 21, 2019.
    CIM industry best practices were followed in the development of the Mineral Reserve

    • Inferred Mineral Resource was considered waste for the open pit reserve estimate.
    • The cutoff 0.129% Cu for the North Pit and 0.132% Cu for the South Pit is based on the copper processing recoveries (90% for the North Pit, 88% for the South Pit) and costs. Dilution was assumed 5% and mining recovery of 98%
    • Calculations used price forecast/recoveries:  Cu $2.75/lb & described above, Au $1,343/toz & 67%, and Ag $19.86/toz & 56%.
    • A selling cost of $0.55/lb was applied to the Cu in concentrate to account for NSR. No selling costs were applied to Au or Ag. NSR and CuEq calculations

    Statement of Underground Mineral Reserve Estimate

    Approximately 51% of the total Underground Measured and Indicated Mineral Resources were converted to a Mineral Reserve by the mine plan, due to the targeting of higher grade ore within the Deposits. The stated Proven and Probable Mineral Reserves estimate has been shown to be economic on the basis of reasonable cost assumptions and NSR values assigned to the resource model.

    Mineral Reserve Estimate (Underground)

    CategoryTonsCuAuAg
    (millions)%oz/stoz/st
    Proven7.41.850.0070.144
    Probable16.51.470.0060.138
    Net Reserves23.91.590.0060.139

    Note: Effective date on the Underground Mineral Reserve is September 15, 2017

  • PUMPKIN HOLLOW MINERAL RESOURCES

    Open Pit Mineral Resources

    The current mineral resource estimate for the open pit was disclosed April 16, 2019 and the related NI 43-101 Technical Report was filed on SEDAR in April 16, 2019, with an effective date of January 21, 2019 .

    The Mineral Resource estimate used as the basis for the Open Pit PFS is summarized below. Mineral Resources are subdivided into classes of Measured, Indicated and Inferred, with the level of confidence reducing with each class respectively. Mineral Resources are reported as in situ tonnage and are not adjusted for mining losses or mining recovery. The Mineral Resources reported are inclusive of those reported in Mineral Reserves. The reader is cautioned that Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

    Confidence CategoryOre (Mst)Average Ore GradesContained Metal
    Cu (%)Au (oz/st)Ag (oz/st)Cu (Mlbs)Au (Koz)Ag (Koz)
    Measured Mineral Resources1340.5610.0020.0641,5082558,593

    Indicated Mineral Resources

    4190.4170.0010.0513,49262321,185
    Measured and Indicated Mineral Resources5530.4520.0020.0545,00087929,778

    Note: Effective date of Open Pit Mineral Resource is January 21, 2019.

    Confidence CategoryOre (Mst)Average Ore GradesContained Metal
    Cu (%)Au (oz/st)Ag (oz/st)Cu (Mlbs)Au (Koz)Ag (Koz)
    Inferred Mineral Resources280.3580.0010.040197371,088

    CIM industry best practices were followed in the development of Mineral Resources:

    • Totals may not total due to rounding.
    • Cu Eq. calculated Mineral Resources were estimated at a cutoff grade of 0.12% Cu
    • Resources were contained within a pit shell produced using a Cu price of $3.75/lb, Au $1,343/Troy Oz and Ag at $19.86/ Troy Oz
    • Includes North, South and South-East deposits.
    • Excludes materials that are oxidized, transition or volcanics.
    • Columns using prices / recoveries: Cu $3.20/lb & 89.3%; Au $1,325/Oz & 67.3%; and Ag $20.01/Oz & 56.3%.

    Underground Mineral Resources

    The Underground Mineral Resource estimate was prepared by Tetra Tech and included in a technical report titled ‘NI 43-101 Technical Report Integrated Feasibility Study Pumpkin Hollow Project Yerington, Nevada’ with an effective date for the Underground Mineral Resource of April 15, 2015. The Underground Mineral Resource estimate was based on the results of all drilling up to the end of 2013. The 2015 and 2018 drilling has not been used to modify the current Mineral Resource estimate. Tetra Tech confirmed that there has been no material change in the current Mineral Resources estimate based on these drilling results. In addition, there has been no change in sampling protocols including drilling, sample preparation, analytical method, verification and security measures. On this basis, Tetra Tech has deemed that no revision to the current Mineral Resource estimate is required. Mineral Resources are subdivided into classes of Measured Resources, Indicated Resources and Inferred Resources, with the level of confidence reducing with each class, respectively. Mineral Resources are reported as in situ tonnage and are not adjusted for mining losses or mining recovery. The Mineral Resources reported are inclusive of Mineral Reserves. In addition to cutoff grade, the Underground Mineral Resources have been limited to the 0.5% Cu mineralized shell interpretation. The reader is cautioned that Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

    Mineral Resource Underground Eastern Area

    CategoryCutoff Grade %/CuTons (millions)Grade %/CuContained Cu lb (millions)Grade Au oz/stContained Au ozs (thousands)Grade Ag oz/stContained Ag ozs (thousands)Grade FeContained Fe tons (millions)
    Measured0.7512.11.603890.006740.1271,54118.72.3

    Indicated

    0.7541.91.331,1140.0052170.1124,71617.67.4
    Measured + Indicated0.7554.11.391,5030.0052910.1166,25717.89.6
    Inferred0.7529.21.096360.003870.0641,87512.83.7

    Notes: Includes East and E2 deposts
    Measured and Indicated Resources are stated as inclusive of reserves
    Columns may not total due to rounding
    Resources are constrained by a 0.5% Cu mineralized interpretation
    Effetive date on Underground Mineral Resource is April 15, 2015

Teamwork. Innovation. Execution.