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Reserves & Resources

Mineral Reserves

The Mineral Reserve estimate for Cobre Las Cruces is shown below and reflects the position as at December 31, 2017. The estimate is a depletion of the June 30, 2015, estimate reported in the Technical Report published in June 2015 (FQM, June 2015) and is based on a copper price of $2.75/lb. The estimate is derived from conventional optimization processes, detailed stage and ultimate pit designs and life of mine production scheduling.

Mineral Reserve Statement for Las Cruces - as at December 31, 2017, and reported based upon at $2.75/lb Cu price and using a 1% Cu cut-off grade

Classification 

 Non-primary Sulphide Ore Primary Sulphide OreTotal Ore 
Ore (Mt)TCu (%)AsCu (%)Ore (Mt)TCu (%)AsCu (%) Ore (Mt)TCu (%)AsCu (%)
Total Proven3.84.58---- 3.84.58-
Total Probable0.54.31---- 0.5 4.31-
Total Mineral Reserves4.34.54---- 4.3 4.54-

This Mineral Reserve estimate as at December 31, 2017, has been estimated and verified under the supervision of independent consulting Mining Engineer, Anthony Cameron of Cameron Mining Consulting Ltd. Anthony Cameron is a qualified person and holds the following valid qualifications: BE (Mining), Grad Dip Bus, M Comm. Law, FAusIMM.

The inventory listed includes 1.3 Mt of stockpiled non-primary sulphide ore at an average grade of 3.93% TCu.

 

At current processing throughput rate of 1.6 Mtpa, the life of mine is expected to be three years from December  31, 2017.

Mineral Resources 

The Mineral Resource estimate for Las Cruces, inclusive of the Mineral Reserve inventory, is presented in the table below and reflects the position as at December 31, 2017. The additional stockpile resource as at the same date is listed in the Cobre Las Cruces stockpile table below. This Mineral Resource estimate is as reflected in the June 30, 2015 NI 43-101 Technical Report estimates and depleted to December 31,2017.

Mineral Resource - as at December 31, 2017, and reported using a 1% Cu cut-off grade

ClassificationTonnes (Mt) Cu (%)Au (g/t)Pb (%)Ag (g/t)Zn (%)
 Secondary Sulphide
Total Measured3.15.51----
Total Indicated 0.85.88----
Subtotal Meas. plus Ind.3.95.59----
Total Inferred- -----
 Gossan
Total Measured------
Total Indicated 0.8-1.712.0942.36-
Subtotal Meas. plus Ind.0.8-1.712.0942.36-
Total Inferred--- ---
 Primary Sulphide
Total Measured------
Total Indicated ------
Subtotal Meas. plus Ind.------
Total Inferred361.11-1.2528.942.64

The current depleted Mineral Resource as at December 31, 2017, was estimated and verified under the supervision of David Gray of the Company who is a qualified person and holds the following valid qualifications: BSc Hons(Geo), MAusIMM, Pr.Sci.Nat.

 

Cobre Las Cruces stockpiles as at December 31, 2017

ClassificationTonnes (Mt) Cu (%)Au (g/t)Pb (%)Ag (g/t)Zn (%)
 Primary Stockpiles
 Total Measured ------
 Total Indicated 3.91.16-1.77-2.60
 Total Meas. plus Ind. 3.91.16-1.77- 2.60
 Secondary Stockpiles
 Total Measured ------
 Total Indicated 1.3 3.93----
 Total Meas. plus Ind. 1.3 3.93----
 Gossan Stockpiles
 Total Measured - ----
 Total Indicated 2.0 - 2.87 3.8090.00-
 Total Meas. plus Ind. 2.0 - 2.87 3.8090.00-

 The current depleted Mineral Resource as at December 31, 2017, was estimated and verified under the supervision of David Gray of the Company who is a qualified person and holds the following valid qualifications: BSc Hons(Geo), MAusIMM, Pr.Sci.Nat. 

Whilst the Primary Sulphide material is partly associated with the current open pit mining operations, any exploitation of this mineralization requires completion of the current technical evaluations, together with approvals for a significant depth extension to the current operations.