Mineral Reserves

PUMPKIN HOLLOW MINERAL RESERVES

Open Pit Mineral Reserves

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

Confidence Category Ore (Mst) Average Ore Grades Contained Metal
Cu (%) Au (oz/st) Ag (oz/st) Cu (Mlbs) Au (Koz) Ag (Koz)
Proven Mineral Reserves (North) 75.4 0.65 0.002 0.070 983 151 5,302
Proven Mineral Reserves (South) 31.3 0.36 0.002 0.045 223 48 1,420
Proven Mineral Reserves (North + South) 106.6 0.57 0.002 0.063 1,206 199 6,722
Probable Mineral Reserves (North) 147.4 0.48 0.001 0.055 1,407 215 8,086

Probable Mineral Reserves (South)

131.7 0.37 0.002 0.049 977 203 6,458
Probable Mineral Reserves (North + South) 279.1 0.43 0.001 0.052 2,384 419 14,544
Proven and Probable Mineral Reserves 385.7 0.47 0.002 0.055 3,590 617 21,266

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)

Category Tons Cu Au Ag
(millions) % oz/st oz/st
Proven 7.4 1.85 0.007 0.144
Probable 16.5 1.47 0.006 0.138
Net Reserves 23.9 1.59 0.006 0.139

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

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