Mineral Reserve Estimate

    Grade Resource
3.5 g/t Au Cut-Off Tonnes Gold Silver Gold Silver
(000s t) (g/t) (g/t) (koz) (koz)
Proven 313 8.3 31.4 83 315
Probable 3,131 8.5 32.3 857 3,254
Total 3,444 8.5 32.2 940 3,570

Notes on Mineral Reserve Estimate:

(1) The Qualified Person for the Mineral Reserve estimate is Michael Makarenko, P. Eng., of JDS Energy & Mining Inc.

(2) Effective date: January 29, 2019. All Mineral Reserves have been estimated in accordance with Canadian Institute of Mining and Metallurgy and Petroleum (CIM) definitions, as required under NI 43-101.

(3) Mineral Reserves were estimated using a $1,250 /oz gold price and gold cut-off grade of 3.5 g/t. Other costs and factors used for gold cut-off grade determination were mining, process and other costs of $109.04/t, transport and treatment charges of $5.00 /oz Au, a royalty of $24.84 /oz Au and a gold metallurgical recovery of 95%.

(4) Silver was not used in the estimation of cut-off grades but is recovered and contributes to the revenue stream.

(5) Tonnages are rounded to the nearest 1,000 t, metal grades are rounded to one decimal place. Tonnage and grade measurements are in metric units; contained gold and silver are reported as thousands of troy ounces.

(6) Rounding as required by reporting guidelines may result in summation differences.

Resource Estimate (inclusive of reserves)

Cerro Blanco High-Grade Resource Estimate at a 3.5 g/t Au cut-off

Resource Category Tonnes Au Grade
Ag Grade
Gold (Oz)
Contained Silver
Measured 607,714 11.5 44.2 225,118 864,281
Indicated 3,661,507 10.1 35.6 1,188,194 4,193,343
Measured & Indicated 4,269,221 10.3 36.8 1,413,312 5,057,624
Inferred 466,218 7.1 16.6 107,215 248,488
  • Effective date: November 1, 2019. All Mineral Resources have been estimated in accordance with Canadian Institute of Mining and Metallurgy and Petroleum (“CIM”) definitions, as required under NI 43-101. Mineral Resource Statement prepared by Garth Kirkham (Kirkham Geosystems Ltd.) in accordance with NI 43-101.
  • Measured Resources include 29,726t of stockpiled material grading 5.35 g/t Au and 22.6 g/t Ag.
  • Mineral Resources reported demonstrate reasonable prospect of eventual economic extraction, as required under NI 43-101. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The Mineral Resources may be materially affected by environmental, permitting, legal, marketing, and other relevant issues.
  • Underground Mineral Resources are reported at a cut-off grade of 3.5 g/t Au. Cut-off grades are based on a price of US$1,250/oz gold, US$16/oz silver, and a number of operating cost and recovery assumptions, including a reasonable contingency factor.
  • Density used was 2.53 t/m3 for mineralized material.
  • Ounce (troy) = metric tonnes x grade / 31.10348. All numbers have been rounded to reflect the relative accuracy of the estimate. Inferred Mineral Resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. However, it is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Resources.