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Reserves & Resources

Mineral Resource and Reserves

The four main deposits are Balboa, Botija, Colina and Valle Grande. There are also a number of smaller zones; the most significant being Brazo and Botija Abajo. There has been significant exploration drilling in this region giving the project a life of mine of 40 years.

Mineral Resources and Reserves were updated by the Company in June 2015, by the filing of an NI 43-101 Technical Report, which replaced the previous NI 43-101 report dated May 2010.

Mineral Resources

The Mineral Resource estimate for Cobre Panama, inclusive of the Mineral Reserve inventory, is presented below and reflects the position as at December 31, 2016. This estimate is consistent with that reported in the recent NI 43-101 Technical Report dated June 2015.

Mineral Resource as at December 31, 2016, and reported using a 0.15% Cu cut-off grade

Deposit Category Tonnes (Mt) TCu (%) Mo (%) Au (g/t) Ag (g/t)
Botija Measured 336 0.46 0.008 0.10 1.35
Botija Indicated 672 0.35 0.007 0.06 1.08
Colina Indicated 1,032 0.39 0.007 0.06 1.58
Medio Indicated 63 0.28 0.004 0.03 0.96
Valle Grande Indicated 602 0.36 0.006 0.04 1.37
Balboa Indicated 647 0.35 0.002 0.08 1.37
Botija Abajo Indicated 114 0.31 0.004 0.06 0.93
Brazo Indicated 228 0.36 0.004 0.05 0.81
Total Measured and Indicated 3,695 0.37 0.006 0.07 1.32
Botija Inferred 152 0.23 0.004 0.03 0.78
Colina Inferred 125 0.26 0.006 0.05 1.20
Medio Inferred 189 0.25 0.005 0.03 1.25
Valle Grande Inferred 363 0.29 0.005 0.03 1.14
Balboa Inferred 79 0.23 0.003 0.04 0.96
Botija Abajo Inferred 67 0.27 0.005 0.06 1.25
Brazo Inferred 76 0.21 0.003 0.01 0.73
Total Inferred 1,051 0.26 0.005 0.04 1.08

The current Mineral Resource inventory for Cobre Panama was estimated and verified by David Gray of the Company who is a qualified person and holds the following valid qualifications: BSc Hons(Geo), MAusIMM, Pr.Sci.Nat.

Mineral Reserves

The Mineral Reserve estimate for Cobre Panama is entirely within the Measured and Indicated Mineral Resource estimate in the table above. It is consistent with the Mineral Reserve estimate reported in the last NI 43-101 Technical Report dated June 2015. The actual cut-off grade for the estimate varies due to variable processing recovery, but otherwise reflects a longer-term consensus copper price of $3.00/lb, a molybdenum price of $13.50/lb, a gold price of $1,200/oz and a silver price of $16.00/oz.

A cut-off grade optimization strategy was adopted for the Mineral Reserve estimation process, whereby an elevated 0.2% Cu cut-off grade was adopted for the period up to 2040, then followed by a period of marginal cut-off grade plant feed for the remainder of the project life. The impact of this strategy is that the initial production years are protected from copper price volatility which could otherwise impact on the economics of marginal grade plant feed at this time.

Mineral Reserve as at December 31, 2016 and reported based on a $3.00/lb Cu price

Classification Tonnes (Mt) TCu (%) Mo (ppm) Au (ppm) Ag (ppm)
Botija




Total Proven 345.6 0.45 74.88 0.10 1.33
Total Probable 603.5 0.35 70.79 0.07 1.10
Subtotal Prov. plus Prob 949.1 0.39 72.28 0.08 1.19
Colina and Medio


Total Proven - - - - -
Total Probable 1,009.9 0.39 66.27 0.06 1.59
Subtotal Prov. plus Prob 1,009.9
0.39 66.27 0.06 1.59
Valle Grande


Total Proven - - - - -
Total Probable 566.0 0.36 67.02 0.05 1.39
Subtotal Prov. plus Prob 566.0 0.36 67.02 0.05 1.39
Balboa


Total Proven - - - - -
Total Probable 437.1 0.35 16.10 0.08 1.36
Subtotal Prov. plus Prob 437.1 0.35 16.10 0.08 1.36
BABR


Total Proven - - - - -
Total Probable 220.5 0.40 41.25 0.07 0.87
Subtotal Prov. plus Prob 220.5
0.40
41.25
0.07 0.87
Total Mineral Reserve


Total Proven 345.6 0.45 74.88 0.10 1.33
Total Probable 2,836.9 0.37 57.71 0.06 1.36
Total Prov. plus Prob 3,182.5 0.38 59.57 0.07 1.35

The current Mineral Reserve inventory for Cobre Panama has been estimated and verified by the Company personnel under the supervision of, and verified by, Michael Lawlor of the Company, who is a qualified person and holds the following valid qualifications: BEng (Mining)(Hons), MEngSc, FAusIMM