Capstone Announces Increased Mineral Resources Estimates for the Cozamin
Copper Mine, Mexico
10.7 million tonnes Measured and Indicated Resources at a Copper Grade of 1.6% Plus By-products
VANCOUVER, March 2 /CNW/ - Capstone Mining Corp. (CS: TSX) today announced an updated NI43-101 compliant mineral resource estimate for its Cozamin Mine in Zacatecas State, Mexico. The new mineral resource estimate includes the results from 6,229 channel samples taken in 2009 from 40 stopes and drifts covering a cumulative distance of about 5km, as well as more detailed survey control. These data were incorporated into a completely new block model for the mine that now contains 25,168 individual channel samples, 150 drill holes from surface and 216 underground drill holes. These new mineral resource estimates will be used in a new mineral reserve estimate for the Cozamin Mine, which is expected to be completed in March.
Capstone commenced mining the San Roberto deposit at the Cozamin Mine in 2006. Since commercial production began, 2.6 million tonnes have been mined at an average grade of 1.54% copper, 0.50% lead, 1.29% zinc and 71g/t silver. In addition to San Roberto, production from the adjacent San Rafael deposit commenced in late 2009. Robert Sim, P.Geo., of Sim Geological Inc., supervised the preparation of the updated mineral resource estimates for the San Roberto and San Rafael deposits. Summaries of these estimates are presented below, while additional details are attached.
Cozamin Mine - Mineral Resources by Class for All Deposits (at a NSR
--------------------------------------------------------------------
cut-off of US$35/t)
-------------------
-------------------------------------------------------------------------
Grade
-------------------------------------------------
Tonnes Copper Zinc Lead Silver Gold
Class (000's)* (%) (%) (%) (g/t) (g/t)
-------------------------------------------------------------------------
Measured (M) 2,078 2.33 1.14 0.53 84.4 0.07
-------------------------------------------------------------------------
Indicated (I) 8,587 1.40 2.09 0.36 59.0 0.22
-------------------------------------------------------------------------
M & I(xx) 10,665 1.58 1.90 0.40 63.9 0.19
-------------------------------------------------------------------------
Inferred 4,073 0.89 2.22 0.41 43.2 0.33
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Contained Metal
-------------------------------------------------
Copper Zinc Lead
Tonnes (millions (millions (millions Silver Gold
Class (000's)* lbs) lbs) lbs) (000s oz) (000s oz)
-------------------------------------------------------------------------
Measured (M) 2,078 106.6 52.2 24.5 5,638 4.5
-------------------------------------------------------------------------
Indicated (I) 8,587 264.5 395.1 68.7 16,289 60.5
-------------------------------------------------------------------------
M & I(xx) 10,665 371.1 447.4 93.2 21,928 65.1
-------------------------------------------------------------------------
Inferred 4,073 80.2 199.1 36.4 5,662 43.5
-------------------------------------------------------------------------
* Rounded to nearest thousand
(xx)Totals may not add exactly due to rounding
"This updated mineral resource estimate demonstrates the robustness of the Cozamin mineralizing system," said Stephen P. Quin, President & COO of Capstone Mining. "Despite reductions due to mining activities in 2009, total contained copper and silver has increased modestly, while contained lead, zinc and gold have increased significantly. These gains are primarily the result of conversion of mineralized material previously below cut-off as a result of higher prices for lead and zinc" he said.
"Following the 2009 acquisition of three mineral claims in the immediate vicinity of these mineral resources, we are optimistic that we will continue to more than replace the production in the immediate mine area," said Mr. Quin. "Further, we have almost completed a sustained 12-month property wide assessment of the Cozamin Mine property, involving airborne and ground geophysics, soil and rock sampling and geologic mapping. This work confirms that there is significant potential for discoveries of new deposits along the principal Mala Noche vein that hosts all the currently known mineral resources, as well as in parallel vein systems." Capstone plans to begin the drill testing of the priority new targets by mid-2010.
Cozamin Mine - Mineral Resources by Class for Each Deposit (at a NSR
--------------------------------------------------------------------
cut-off of US$35/t)
-------------------
-------------------------------------------------------------------------
Grade
-------------------------------------------------
Tonnes Copper Zinc Lead Silver Gold
Class(xx) (000's)* (%) (%) (%) (g/t) (g/t)
-------------------------------------------------------------------------
Measured (M)
-------------------------------------------------------------------------
San Roberto 2,078 2.33 1.14 0.53 84.4 0.07
-------------------------------------------------------------------------
San Rafael 0
-------------------------------------------------------------------------
Sub-total
Measured 2,078 2.33 1.14 0.53 84.4 0.07
-------------------------------------------------------------------------
Indicated (I)
-------------------------------------------------------------------------
San Roberto 6,604 1.73 1.71 0.33 64.4 0.13
-------------------------------------------------------------------------
San Rafael 1,983 0.27 3.33 0.47 41.2 0.50
-------------------------------------------------------------------------
Sub-total
Indicated 8,587 1.40 2.09 0.36 59.0 0.22
-------------------------------------------------------------------------
M+I
-------------------------------------------------------------------------
San Roberto 8,682 1.88 1.58 0.38 69.1 0.12
-------------------------------------------------------------------------
San Rafael 1,983 0.27 3.33 0.47 41.2 0.50
-------------------------------------------------------------------------
Sub-total M+I 10,665 1.58 1.90 0.40 63.9 0.19
-------------------------------------------------------------------------
Additional
Inferred
-------------------------------------------------------------------------
San Roberto 2,376 1.44 1.69 0.18 52.6 0.11
-------------------------------------------------------------------------
San Rafael 1,697 0.12 2.95 0.72 30.1 0.64
-------------------------------------------------------------------------
Sub-total
Inferred 4,073 0.89 2.22 0.41 43.2 0.33
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Contained Metal
-------------------------------------------------
Copper Zinc Lead
Tonnes (millions (millions (millions Silver Gold
Class(xx) (000's)* lbs) lbs) lbs) (000s oz) (000s oz)
-------------------------------------------------------------------------
Measured (M)
-------------------------------------------------------------------------
San Roberto 2,078 106.6 52.2 24.5 5,638 4.5
-------------------------------------------------------------------------
San Rafael 0
-------------------------------------------------------------------------
Sub-total
Measured 2,078 106.6 52.2 24.5 5,638 4.5
-------------------------------------------------------------------------
Indicated (I)
-------------------------------------------------------------------------
San Roberto 6,604 252.5 249.6 48.0 13,662 28.4
-------------------------------------------------------------------------
San Rafael 1,983 12.0 145.5 20.7 2,627 32.2
-------------------------------------------------------------------------
Sub-total
Indicated 8,587 264.5 395.1 68.7 16,289 60.5
-------------------------------------------------------------------------
M+I
-------------------------------------------------------------------------
San Roberto 8,682 359.1 301.9 72.5 19,300 32.9
-------------------------------------------------------------------------
San Rafael 1,983 12.0 145.5 20.7 2,627 32.2
-------------------------------------------------------------------------
Sub-total M+I 10,665 371.1 447.4 93.2 21,928 65.1
-------------------------------------------------------------------------
Additional
Inferred
-------------------------------------------------------------------------
San Roberto 2,376 75.6 88.7 9.5 4,019 8.6
-------------------------------------------------------------------------
San Rafael 1,697 4.6 110.4 27.0 1,644 34.9
-------------------------------------------------------------------------
Sub-total
Inferred 4,073 80.2 199.1 36.4 5,662 43.5
-------------------------------------------------------------------------
* Rounded to nearest thousand
(xx)Totals may not add exactly due to rounding
Mineral Resource Estimates at different cut-offs
The mineral resources at Cozamin are summarized at a series of cut-off limits for comparison purposes in the table below.
Cozamin Mine - Mineral Resources for all Deposits At Different NSR
------------------------------------------------------------------
Cut-offs
--------
-------------------------------------------------------------------------
Grade
NSR -------------------------------------------------
Cut Off Tonnes Copper Zinc Lead Silver Gold
(US$/t) (000's)* (%) (%) (%) (g/t) (g/t)
-------------------------------------------------------------------------
Measured + Indicated
-------------------------------------------------------------------------
(greater than)
50 5,999 2.16 1.74 0.42 75.7 0.13
-------------------------------------------------------------------------
(greater than)
40 8,908 1.76 1.86 0.41 68.1 0.17
-------------------------------------------------------------------------
(greater than)
37.5 9,766 1.67 1.89 0.40 66.1 0.18
-------------------------------------------------------------------------
(greater than)
35 (Base case) 10,665 1.58 1.90 0.40 63.9 0.19
-------------------------------------------------------------------------
(greater than)
30 12,378 1.43 1.90 0.38 60.3 0.20
-------------------------------------------------------------------------
(greater than)
25 13,977 1.31 1.89 0.37 57.0 0.20
-------------------------------------------------------------------------
Additional Inferred
-------------------------------------------------------------------------
(greater than)
50 1,309 1.41 2.45 0.39 53.4 0.30
-------------------------------------------------------------------------
(greater than)
40 2,894 1.01 2.37 0.41 46.8 0.35
-------------------------------------------------------------------------
(greater than)
37.5 3,388 0.94 2.33 0.43 44.6 0.34
-------------------------------------------------------------------------
(greater than)
35 (Base case) 4,073 0.89 2.22 0.41 43.2 0.33
-------------------------------------------------------------------------
(greater than)
30 5,382 0.77 2.18 0.40 40.2 0.32
-------------------------------------------------------------------------
(greater than)
25 7,207 0.65 2.08 0.38 36.5 0.32
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Contained Metal
-------------------------------------------------
NSR Copper Zinc Lead
Cut Off Tonnes (millions (millions (millions Silver Gold
(US$/t) (000's)* lbs) lbs) lbs) (000s oz) (000s oz)
-------------------------------------------------------------------------
Measured + Indicated
-------------------------------------------------------------------------
(greater than)
50 5,999 286.1 230.2 55.8 14,594 26.0
-------------------------------------------------------------------------
(greater than)
40 8,908 345.7 366.2 80.2 19,513 49.8
-------------------------------------------------------------------------
(greater than)
37.5 9,766 358.9 406.3 86.7 20,745 57.7
-------------------------------------------------------------------------
(greater than)
35 (Base case) 10,665 371.1 447.4 93.2 21,928 65.1
-------------------------------------------------------------------------
(greater than)
30 12,378 391.1 519.4 104.5 24,007 78.3
-------------------------------------------------------------------------
(greater than)
25 13,977 405.0 581.3 114.3 25,614 90.0
-------------------------------------------------------------------------
Additional Inferred
-------------------------------------------------------------------------
(greater than)
50 1,309 40.6 70.8 11.3 2,249 12.5
-------------------------------------------------------------------------
(greater than)
40 2,894 64.5 151.0 26.5 4,354 32.7
-------------------------------------------------------------------------
(greater than)
37.5 3,388 70.1 174.4 31.8 4,861 37.5
-------------------------------------------------------------------------
(greater than)
35 (Base case) 4,073 80.2 199.1 36.4 5,662 43.5
-------------------------------------------------------------------------
(greater than)
30 5,382 91.3 258.1 46.9 6,952 56.0
-------------------------------------------------------------------------
(greater than)
25 7,207 103.0 330.7 60.9 8,453 73.2
-------------------------------------------------------------------------
* Rounded to nearest thousand
(xx)Totals may not add exactly due to rounding
Mineral Resource Parameters
The metal prices and metallurgical parameters used to estimate the NSR values for each deposit are presented in the following tables. At San Rafael, ore grading above 0.3% copper will be treated in the plant with San Roberto ore. Zinc-rich (copper-poor) ore will be treated separately and gold will be recovered as reflected in the separate parameters for San Rafael.
Cozamin Mine - NSR parameters San Roberto
-----------------------------------------
------------------------------ ------------------------------
Metal Prices NSR Parameters
------------------------------ ------------------------------
Units Value $US Units Value $US
------------------------------ ------------------------------
Cu $/lb $2.50 Cu 0.10 % $2.47
------------------------------ ------------------------------
Zn $/lb $0.80 Zn 0.10 % $0.56
------------------------------ ------------------------------
Pb $/lb $0.85 Pb 0.10 % $0.89
------------------------------ ------------------------------
Ag $/oz $4.00 Ag g/t $0.06
------------------------------ ------------------------------
------------------------------ ------------------------------
Grades Recovery %
------------------------------ ------------------------------
Cu Zn Pb Ag Cu Zn Pb
------------------------------ ------------------------------
Cu Conc. 25% 50 92
------------------------------ ------------------------------
Zn Conc. 50% 2 70
------------------------------ ------------------------------
Pb Conc. 60% 20 60
------------------------------ ------------------------------
Cozamin Mine - NSR parameters San Rafael Zinc Ore
-------------------------------------------------
------------------------------ ------------------------------
Metal Prices NSR Parameters
------------------------------ ------------------------------
Units Value $US Units Value $US
------------------------------ ------------------------------
Cu $/lb $2.50 Cu 0.10 % $2.47
------------------------------ ------------------------------
Zn $/lb $0.80 Zn 0.10 % $0.69
------------------------------ ------------------------------
Pb $/lb $0.85 Pb 0.10 % $1.50
------------------------------ ------------------------------
Au $/oz $950 Au g/t $17.21
------------------------------ ------------------------------
Ag $/oz $4.00 Ag g/t $0.06
------------------------------ ------------------------------
------------------------------ ------------------------------
Grades Recovery %
------------------------------ ------------------------------
Au Ag Zn Pb Au Ag Zn Pb
------------------------------ ------------------------------
Zn 0.72 183 52% 7 16 70 2
Conc. g/t g/t
------------------------------ ------------------------------
Pb 25.0 2,418
Conc. g/t g/t 55% 67 58 15 85
------------------------------ ------------------------------
Preparation of Mineral Resource Estimates
The mineral resource estimates for the Cozamin deposits were completed by Capstone staff under the supervision of independent consultant Robert Sim, P.Geo., of SIM Geological Inc., using accepted, industry standard, methods that conform with National Instrument 43-101. The resource model has been developed using MineSight(R) (v4.61).
There have been no diamond drill holes completed on either the San Roberto or San Rafael deposits in 2009. However, extensive underground channel sample data has been incorporated into the new mineral resource estimates, and the underground workings have been extensively resurveyed to provide greater accuracy to the data. Underground mining activities have occurred at both deposits during 2009 and this development continues to display a high degree of consistency and continuity to the mineralization.
Resource Estimation Methodology
The data and methodology utilized for the resource estimate is as follows:
- The resource model has been generated from a database containing a
total of 366 diamond drill (core) holes collared from surface as well
as from a series of underground drill stations developed on the No. 8
level of the San Roberto mine workings. Drill holes have been
oriented to intersect the mineralized zone at an average of 50m
intervals in the majority of the San Rafael and San Roberto areas.
Below an elevation of 1,900m (550m below surface), the drill hole
spacing at San Roberto increases to an average of 200m. All drilling
has been conducted from the hangingwall side of the deposit with
pierce angle ranging from 45 to 90 degrees in relation to the plane
of the mineralization. In addition to the drill hole data, there are
a series of 3,811 chip-channels taken at approximately 4m intervals
across the strike of the deposit in all development drifts in the San
Roberto mine area. Approximately 250m of underground (mineralized
zone) development was completed at San Rafael during 2009 but channel
sample assay results were not available for use in the Dec 31 2009
resource model.
- Drill hole samples have been analyzed for copper, zinc, lead, silver
and gold at ALSChemex and SGS labs. Underground channel samples were
analyzed at SGS early in the mine life and, more recently, at the
Cozamin on site lab. All sample results are monitored with an
appropriate QAQC program. Bulk density measurements have been
conducted by site personnel on samples from 135 drill holes evenly
spaced throughout the model area.
- The structural zone which hosts the mineralization at the Cozamin
deposit has been interpreted using a combination of geology
information and sample grade results in the drilling and channel
data. This "mineral domain" strikes east-west for a distance of more
than 3km, dips on average at -60º to the north and extends from
surface to a depth -900m. The thickness of the mineral domain ranges
from several metres to over 20m, with an average thickness of about
7m (true).
- Sample data has been composited to 1m standard intervals prior to
block grade estimations. The presence of potential outlier sample
data has been evaluated and appropriate thresholds have been applied
for all elements in both the San Rafael and San Roberto areas.
- Nominal block sizes measuring 5m by 3m by 3m at San Roberto and 10m
by 3m by 3m at San Rafael, with the long axis oriented parallel to
the east-west strike of the zone, are considered appropriate with
respect to the sample spacing and the scale of the deposits.
- Estimates for copper, zinc, lead, silver and gold are made in the
block models using ordinary kriging. Estimates for bulk density are
made using the inverse distance interpolation method. Block grade
estimates have been validated using several methods including
extensive visual review with respect to the underlying data and
comparisons with results produced using other interpolation methods.
- Mineral resources have been classified in accordance with the CIM
definition standards for mineral resources and mineral reserves. The
classification parameters are defined in relation to the distance to
sample data and are intended to encompass zones of reasonably
continuous mineralization.
Quality Assurance/Quality Control
Robert Sim P.Geo., of SIM Geological Inc., supervised the preparation of the mineral resource estimate for the Cozamin deposit. Mr. Sim has reviewed pertinent geological information in sufficient detail to support the data incorporated in the resource estimate. Robert Sim P.Geo., an Independent Qualified Person as defined under National Instrument 43-101, is responsible for the resource estimate presented in this release.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated mineral resource categories through further drilling, or into mineral reserves once economic considerations are applied.
The TSX does not accept any responsibility for the adequacy or accuracy of this press release.
Forward-Looking Information
This document may contain "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements"). These forward-looking statements are made as of the date of this document and Capstone Mining Corp. (the "Company") does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation.
Forward-looking statements relate to future events or future performance and reflect Company management's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of mineral resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Compliance with NI43-101
Unless otherwise indicated, Capstone has prepared the technical information in this news release ("Technical Information") based on information contained in the technical reports and news releases (collectively the "Disclosure Documents") available under Capstone Mining Corp.'s company profile on SEDAR at www.sedar.com. Each Disclosure Document was prepared by or under the supervision of a qualified person (a "Qualified Person") as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101"). For readers to fully understand the information in this presentation, they should read the Technical Reports (available on www.sedar.com) in their entirety, including all qualifications, assumptions and exclusions that relate to the information set out in this presentation which qualifies the Technical Information. Readers are advised that mineral resources that are not mineral reserves do not have demonstrated economic viability. The Disclosure Documents are each intended to be read as a whole, and sections should not be read or relied upon out of context. The Technical Information is subject to the assumptions and qualifications contained in the Disclosure Documents.
The following employees of Capstone, each a Qualified Person, reviewed Technical Information contained in this news release: Robert Barnes, Professional Engineer and consulting geologist Hugh Willson, Professional Geologist, respectively reviewed the resource reconciliation and geological information related to the Cozamin Mine.
Cozamin Mine - Details of Mineral Resource Estimates
Resource estimates for each deposit at the Cozamin Mine are presented below.
San Roberto Deposit - Mineral Resources by Class (at a NSR cut-off of
---------------------------------------------------------------------
US$35.00)
---------
-------------------------------------------------------------------------
Grade
-------------------------------------------------
Tonnes Copper Zinc Lead Silver Gold
Class (000's)* (%) (%) (%) (g/t) (g/t)
-------------------------------------------------------------------------
Measured (M) 2,078 2.33 1.14 0.53 84.4 0.07
-------------------------------------------------------------------------
Indicated (I) 6,604 1.73 1.71 0.33 64.4 0.13
-------------------------------------------------------------------------
M & I(xx) 8,682 1.88 1.58 0.38 69.1 0.12
-------------------------------------------------------------------------
Inferred 2,376 1.44 1.69 0.18 52.6 0.11
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Contained Metal
-------------------------------------------------
Copper Zinc Lead
Tonnes (millions (millions (millions Silver Gold
Class (000's)* lbs) lbs) lbs) (000s oz) (000s oz)
-------------------------------------------------------------------------
Measured (M) 2,078 106.6 52.2 24.5 5,638 4.5
-------------------------------------------------------------------------
Indicated (I) 6,604 252.5 249.6 48.0 13,662 28.4
-------------------------------------------------------------------------
M & I(xx) 8,682 359.1 301.9 72.5 19,300 32.9
-------------------------------------------------------------------------
Inferred 2,376 75.6 88.7 9.5 4,019 8.6
-------------------------------------------------------------------------
* Rounded to nearest thousand
(xx)Totals may not add exactly due to rounding
San Roberto Deposit - Mineral Resources at Different NSR Cut-offs
-----------------------------------------------------------------
-------------------------------------------------------------------------
Grade
NSR -------------------------------------------------
Cut Off Tonnes Copper Zinc Lead Silver Gold
(US$/t) (000's)* (%) (%) (%) (g/t) (g/t)
-------------------------------------------------------------------------
Measured + Indicated
-------------------------------------------------------------------------
(greater than)
50 5,530 2.32 1.55 0.41 77.4 0.09
-------------------------------------------------------------------------
(greater than)
40 7,626 2.01 1.58 0.39 71.9 0.11
-------------------------------------------------------------------------
(greater than)
37.5 8,158 1.94 1.58 0.38 70.6 0.12
-------------------------------------------------------------------------
(greater than)
35 (Base case) 8,682 1.88 1.58 0.38 69.1 0.12
-------------------------------------------------------------------------
(greater than)
30 9,652 1.77 1.57 0.37 66.6 0.12
-------------------------------------------------------------------------
(greater than)
25 10,465 1.68 1.56 0.36 64.2 0.12
-------------------------------------------------------------------------
Additional Inferred
-------------------------------------------------------------------------
(greater than)
50 948 1.88 1.98 0.17 58.9 0.13
-------------------------------------------------------------------------
(greater than)
40 1,746 1.58 1.85 0.19 55.5 0.12
-------------------------------------------------------------------------
(greater than)
37.5 1,975 1.52 1.83 0.19 54.1 0.12
-------------------------------------------------------------------------
(greater than)
35 (Base case) 2,376 1.44 1.69 0.18 52.6 0.11
-------------------------------------------------------------------------
(greater than)
30 2,985 1.30 1.70 0.20 50.4 0.11
-------------------------------------------------------------------------
(greater than)
25 3,776 1.14 1.67 0.22 47.0 0.12
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Contained Metal
-------------------------------------------------
NSR Copper Zinc Lead
Cut Off Tonnes (millions (millions (millions Silver Gold
(US$/t) (000's)* lbs) lbs) lbs) (000s oz) (000s oz)
-------------------------------------------------------------------------
Measured + Indicated
-------------------------------------------------------------------------
(greater than)
50 5,530 282.3 189.0 49.4 13,764 16.6
-------------------------------------------------------------------------
(greater than)
40 7,626 337.2 265.2 65.4 17,636 26.9
-------------------------------------------------------------------------
(greater than)
37.5 8,158 348.7 283.8 69.1 18,508 30.2
-------------------------------------------------------------------------
(greater than)
35 (Base case) 8,682 359.1 301.9 72.5 19,300 32.9
-------------------------------------------------------------------------
(greater than)
30 9,652 376.0 333.5 78.4 20,657 37.4
-------------------------------------------------------------------------
(greater than)
25 10,465 387.0 359.3 83.2 21,608 40.9
-------------------------------------------------------------------------
Additional Inferred
-------------------------------------------------------------------------
(greater than)
50 948 39.2 41.4 3.6 1,794 4.1
-------------------------------------------------------------------------
(greater than)
40 1,746 61.0 71.0 7.2 3,112 6.6
-------------------------------------------------------------------------
(greater than)
37.5 1,975 66.1 79.6 8.3 3,436 7.3
-------------------------------------------------------------------------
(greater than)
35 (Base case) 2,376 75.6 88.7 9.5 4,019 8.6
-------------------------------------------------------------------------
(greater than)
30 2,985 85.3 111.7 13.3 4,838 10.3
-------------------------------------------------------------------------
(greater than)
25 3,776 95.3 139.3 18.7 5,706 14.3
-------------------------------------------------------------------------
* Rounded to nearest thousand
(xx)Totals may not add exactly due to rounding
San Rafael Deposit - Mineral Resources by Class (at a NSR cut-off of
--------------------------------------------------------------------
US$35.00)
---------
-------------------------------------------------------------------------
Grade
-------------------------------------------------
Tonnes Copper Zinc Lead Silver Gold
Class (000's)* (%) (%) (%) (g/t) (g/t)
-------------------------------------------------------------------------
Measured (M) 0
-------------------------------------------------------------------------
Indicated (I) 1,983 0.27 3.33 0.47 41.2 0.50
-------------------------------------------------------------------------
M & I(xx) 1,983 0.27 3.33 0.47 41.2 0.50
-------------------------------------------------------------------------
Inferred 1,697 0.12 2.95 0.72 30.1 0.64
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Contained Metal
-------------------------------------------------
Copper Zinc Lead
Tonnes (millions (millions (millions Silver Gold
Class (000's)* lbs) lbs) lbs) (000s oz) (000s oz)
-------------------------------------------------------------------------
Measured (M) 0
-------------------------------------------------------------------------
Indicated (I) 1,983 12.0 145.5 20.7 2,627 32.2
-------------------------------------------------------------------------
M & I (xx) 1,983 12.0 145.5 20.7 2,627 32.2
-------------------------------------------------------------------------
Inferred 1,697 4.6 110.4 27.0 1,644 34.9
-------------------------------------------------------------------------
* Rounded to nearest thousand
(xx)Totals may not add exactly due to rounding
San Rafael Deposit - Mineral Resources at Different NSR Cut-offs
----------------------------------------------------------------
-------------------------------------------------------------------------
Grade
NSR -------------------------------------------------
Cut Off Tonnes Copper Zinc Lead Silver Gold
(US$/t) (000's)* (%) (%) (%) (g/t) (g/t)
-------------------------------------------------------------------------
Measured + Indicated
-------------------------------------------------------------------------
(greater than)
50 469 0.37 3.99 0.62 55.1 0.62
-------------------------------------------------------------------------
(greater than)
40 1,282 0.30 3.57 0.52 45.5 0.56
-------------------------------------------------------------------------
(greater than)
37.5 1,609 0.29 3.45 0.50 43.2 0.53
-------------------------------------------------------------------------
(greater than)
35 (Base case) 1,983 0.27 3.33 0.47 41.2 0.50
-------------------------------------------------------------------------
(greater than)
30 2,726 0.25 3.09 0.44 38.2 0.47
-------------------------------------------------------------------------
(greater than)
25 3,512 0.23 2.87 0.40 35.5 0.43
-------------------------------------------------------------------------
Additional Inferred
-------------------------------------------------------------------------
(greater than)
50 361 0.18 3.69 0.98 39.2 0.72
-------------------------------------------------------------------------
(greater than)
40 1,148 0.14 3.16 0.76 33.7 0.71
-------------------------------------------------------------------------
(greater than)
37.5 1,413 0.13 3.04 0.76 31.4 0.67
-------------------------------------------------------------------------
(greater than)
35 (Base case) 1,697 0.12 2.95 0.72 30.1 0.64
-------------------------------------------------------------------------
(greater than)
30 2,397 0.11 2.77 0.64 27.4 0.59
-------------------------------------------------------------------------
(greater than)
25 3,431 0.10 2.53 0.56 24.9 0.53
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Contained Metal
-------------------------------------------------
NSR Copper Zinc Lead
Cut Off Tonnes (millions (millions (millions Silver Gold
(US$/t) (000's)* lbs) lbs) lbs) (000s oz) (000s oz)
-------------------------------------------------------------------------
Measured + Indicated
-------------------------------------------------------------------------
(greater than)
50 469 3.8 41.3 6.4 831 9.4
-------------------------------------------------------------------------
(greater than)
40 1,282 8.5 100.9 14.7 1,877 22.9
-------------------------------------------------------------------------
(greater than)
37.5 1,609 10.2 122.5 17.6 2,236 27.4
-------------------------------------------------------------------------
(greater than)
35 (Base case) 1,983 12.0 145.5 20.7 2,627 32.2
-------------------------------------------------------------------------
(greater than)
30 2,726 15.2 186.0 26.2 3,349 40.9
-------------------------------------------------------------------------
(greater than)
25 3,512 18.0 222.0 31.1 4,006 49.1
-------------------------------------------------------------------------
Additional Inferred
-------------------------------------------------------------------------
(greater than)
50 361 1.4 29.4 7.8 455 8.4
-------------------------------------------------------------------------
(greater than)
40 1,148 3.5 79.9 19.2 1,242 26.1
-------------------------------------------------------------------------
(greater than)
37.5 1,413 4.0 94.7 23.5 1,425 30.2
-------------------------------------------------------------------------
(greater than)
35 (Base case) 1,697 4.6 110.4 27.0 1,644 34.9
-------------------------------------------------------------------------
(greater than)
30 2,397 5.9 146.3 33.6 2,115 45.7
-------------------------------------------------------------------------
(greater than)
25 3,431 7.7 191.4 42.2 2,747 58.9
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* Rounded to nearest thousand
(xx)Totals may not add exactly due to rounding
For further information: Darren Pylot, Vice Chairman & CEO; Stephen Quin, President & COO; Or Investor Relations' Zobeida Slogan at (604) 684-8894 or (866) 684-8894, [email protected]
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