On February 24, 2016, the Company released results of an independent NI 43-101 Feasibility Study for the Buriticá project. The Feasibility Study contains the Company’s initial Mineral Reserve statement and economic analysis demonstrating project viability, and highlights that the Buriticá project will be host to an economically robust, high-grade underground gold mine, which includes a mineral reserve for the combined Yaraguá and Veta Sur vein systems totaling 3.7 million ounces of gold and 10.7 million ounces of silver (13.7 million tonnes grading 8.4 g/t gold and 24.3 g/t silver).
Initial capital costs in the Feasibility Study were $389.2 million, including contingency but excluding working capital. The capital costs in the Feasibility Study is a Class 3 cost estimate, which is considered accurate up to -10%/+20%. Management’s current total project cost estimate (including scope changes), determined internally and subject to change, is in the range of $475-$515 million (including contingency but excluding working capital), which the Company believes is accurate within +/-10%. For further details, please see the Company’s Q2 2018 MD&A and the technical report entitled “Buriticá Project NI 43-101 Technical Report Feasibility Study Antioquia, Colombia” dated March 29, 2016 with an effective date of February 24, 2016 led by JDS Energy & Mining, Inc.