US Copper Production Targeted for Q4, 2019

Mineral Resources

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 estimate1 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 Category

Ore (Mst)

Average Ore Grades

Contained Metal

Cu (%)

Au (oz/st)

Ag (oz/st)

Cu (Mlbs)

Au (Koz)

Ag (Koz)

Measured Mineral Resources

134

0.561

0.002

0.064

1,508

255

8,593

Indicated Mineral Resources

419

0.417

0.001

0.051

3,492

623

21,185

Measured and Indicated Mineral Resources

553

0.452

0.002

0.054

5,000

879

29,778

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

Confidence Category

Ore (Mst)

Average Ore Grades

Contained Metal

Cu (%)

Au (oz/st)

Ag (oz/st)

Cu (Mlbs)

Au (Koz)

Ag (Koz)

Inferred Mineral Resources

28

0.358

0.001

0.040

197

37

1,088

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%.

Source: Nevada Copper Pumpkin Hollow Project NI 43-101 Technical report: Pumpkin Hollow Development Options – pre-feasibility Study 5,000 tons/day Underground Project; Feasibility Study for a 70,000 tons/day Open Pit /Underground Project, amended report date of January 3, 2018.

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

Category

Cutoff Grade %/Cu

Tons (millions)

Grade %/Cu

Contained Cu lb (millions)

Grade Au oz/st

Contained Au ozs (thousands)

Grade Ag oz/st

Contained Ag ozs (thousands)

Grade Fe

Contained Fe tons (millions)

Measured

0.75

12.1

1.60

389

0.006

74

0.127

1,541

18.7

2.3

Indicated

0.75

41.9

1.33

1,114

0.005

217

0.112

4,716

17.6

7.4

Measured + Indicated

0.75

54.1

1.39

1,503

0.005

291

0.116

6,257

17.8

9.6

Inferred

0.75

29.2

1.09

636

0.003

87

0.064

1,875

12.8

3.7

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

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