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Notes to Reserves & Resources
The terms “Mineral Reserve”, “Proven Mineral Reserve” and “Probable Mineral Reserve” are Canadian mining terms as defined in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) Standards on Mineral Resources and Mineral Reserves Definitions and Guidelines adopted by the CIM Council on August 20, 2000. The terms “Mineral Resource”, “Measured Mineral Resource”, “Indicated Mineral Resource”, and “Inferred Mineral Resource” are Canadian mining terms as defined in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects under the guidelines set out in the CIM Standards.
All mineral reserves and mineral resources were estimated in accordance with the CIM Standards of the Canadian Institute of Mining, Metallurgy and Petroleum, and National Instrument 43-101, or the AusIMM JORC equivalent.
Mineral reserves for Kemess South were calculated using the following economic parameters: exchange rate CDN$/US$1.15; gold price $600/oz; copper price $2.52/lb; and, silver price $12.00/oz. West pit operating assumptions: gold recovery 72.8%; copper recovery 86.8%; mining costs CDN$1.79/tonne; milling costs CDN$4.09/tonne; and, administration CDN$1.57/tonne. East pit operating assumptions: gold recovery 52.5%; copper recovery 70.8%; mining costs CDN$0.94/tonne; milling costs CDN$3.94/tonne; and, administration CDN$1.37/tonne. Smelter price participation for copper is variable, but capped at $0.035/lb.
Reserve estimates for Kemess South were prepared by Gordon Skrecky, Chief Mine Geologist, Kemess Mines Ltd. Mr. Skrecky is a member of the Association of Professional Engineers and Geoscientists of British Columbia and has 21 years of experience in mineral resource estimation.
Mineral reserves and resources are rounded to 1,000 tonnes, 0.01 g/t gold and 1,000 ounces. Minor discrepancies in summations may occur due to rounding. |
Note to US Investors
While the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource”, and “inferred mineral resource” are recognized and required by Canadian regulations, they are not defined terms under standards in the United States. As such, information concerning descriptions of mineralization and resources under Canadian standards may not be comparable to similar information made public by the US Securities and Exchange Commission. “Indicated mineral resource” and “inferred mineral resource” have a great amount of uncertainty as to their existence and a great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “indicated mineral resource” or “inferred mineral resource” will ever be upgraded to a higher category. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. |