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Reserves & Resources

The Mineral Resources and Reserves at Sentinel reflect the May 2015 NI 43-101 Technical Report estimates, depleted to December 2016.

Mineral Reserves

The Mineral Reserve estimate for Sentinel as listed in the table below has been based on conventional Whittle 4X optimization, followed by detailed life of mine design and planning accounting for staged pit cutbacks to suit in-pit ore crushing and conveying plus trolley assisted waste haulage, and comprehensive ore and waste mining/production scheduling.

The statement is consistent with depletion from the estimate produced for the 2015 NI 43-101 Technical Report. The predicted plant recoveries are consistent with previous Mineral Reserve estimates, and the estimated marginal cut-off grade is based on the long-term consensus copper price of $3.00/lb Cu and a 9% Zambian Government royalty (applicable at the time of the estimate).

The estimate has also been adjusted to reflect near-term consensus copper pricing for 2017, the impact of which is an elevated cut-off grade for that year.

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

Classification Ore (Mt) TCu (%) ASCu (%)
Non-primary sulphide
Total Proven 56.6 0.44 0.08
Total Probable 12.7 0.44 0.07
Subtotal Prov. plus Prob. 69.3 0.44 0.08
Primary sulphide
Total Proven 706.6 0.50 0.02
Total Probable 147.6 0.51 0.02
Subtotal Prov. plus Prob. 854.2 0.50 0.02
Total Mineral Reserve
Total Proven 763.2 0.49 0.02
Total Probable 160.3 0.50 0.02
Total Prov. plus Prob. 923.5 0.49 0.02

The current depleted Mineral Reserve for Sentinel has been estimated and verified by the Company’s personnel under the supervision of Michael Lawlor of the Company, who is a qualified person and holds the following valid qualifications: BEng (Mining)(Hons), MEngSc, FAusIMM. The total Measured Mineral Reserve is less than the corresponding total Proven Mineral Reserve for reasons of different cut-off grade criteria.

Mineral Reserve Statement for Sentinel Stockpiles as at December 31, 2016

Classification/Stockpile Ore (Mt) TCu (%) ASCu (%)
Total Proven 15.2 0.31 -
Total Probable - - -
Total Prov. plus Prob. 15.2 0.31 -

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

The total Mineral Reserve inventory inclusive of stockpiles is 938.7 Mt at an average grade of 0.49% TCu.

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 first half of the project life, then followed by a period of marginal cut-off grade plant feed for the remainder of the project life. In addition to the near-term adjustment mentioned above, 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 Resources as at December 31, 2016 using a 0.2% TCu cut-off

Classification Tonnes (Mt) TCu (%) ASCu (%) Ni (%)
Total Measured 693.7 0.56 0.02 0.002
Total Indicated 273.7 0.46 0.01 0.002
Total Meas. plus Ind. 967.4 0.53 0.02 0.002
Total Inferred 135.9 0.37 0.01 0.004

The current depleted Mineral Resource 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 Resource Statement for Sentinel Stockpiles as at December 31, 2016

Classification/Stockpile Tonnes (Mt) TCu (%) ASCu (%)
Total Measured 15.2 0.31 -
Total Indicated - - -
Total Meas. plus Ind. 15.2 0.31 -

The current depleted Mineral Resource inventory 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.