Mineral Reserves & Resources

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Mineral Reserves

Mineral Reserves from the Feasibility Study for the Buriticá project are derived from the 2015 Mineral Resource Estimate and are based on 271,003 metres of drill core sampling and 7,215 metres of underground sampling (as at May 11, 2015).

Combined Yaraguá and Veta Sur Mineral Reserve Estimate

Reserve Grades Contained Metal
Category Tonnes Gold
g/t
Silver
g/t
Gold
(oz)
Silver
(oz)
Proven 677,400 21.1 60.0 459,000 1,307,000
Probable 13,039,400 7.8 22.5 3,251,000 9,412,000
Total P&P 13,716,800 8.4 24.3 3,710,000 10,719,000

Notes: Based on cut-off grades of 3.8 g/t for Yaraguá and 4.0 g/t for Veta Sur, $950 per ounce gold price, and US$:COP exchange rate of 2,850. Rounding of some figures may lead to minor discrepancies in totals.

Yaraguá Mineral Reserve Estimate

Reserve Grades Contained Metal
Category Tonnes Gold
g/t
Silver
g/t
Gold
(oz)
Silver
(oz)
Proven 450,600 20.5 47.6 297,000 690,000
Probable 8,378,800 7.0 20.8 1,889,000 5,609,000
Total P&P 8,829,400 7.7 22.2 2,186,000 6,299,000

Notes: Based on a 3.8 g/t cut-off grade, $950 per ounce gold price, and US$:COP exchange rate of 2,850. Rounding of some figures may lead to minor discrepancies in totals.

Veta Sur Mineral Reserve Estimate

Reserve Grades Contained Metal
Category Tonnes Gold
g/t
Silver
g/t
Gold
(oz)
Silver
(oz)
Proven 226,800 22.2 84.7 162,000 617,000
Probable 4,660,600 9.1 25.4 1,362,000 3,803,000
Total P&P 4,887,400 9.7 28.1 1,524,000 4,420,000

Notes: Based on a 4.0 g/t cut-off grade, $950 per ounce gold price, and US$:COP exchange rate of 2,850. Rounding of some figures may lead to minor discrepancies in totals.

The technical information in the mineral reserve estimate is based on technical information prepared under the direction and supervision of JDS Energy & Mining, Inc., by leading independent industry consultants, all Qualified Persons (QP) under NI 43-101. A complete list of the consultants and QPs contributing to the Feasibility Study is included in 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. A copy of the technical report can be accessed under the Company’s SEDAR profile at www.sedar.com or on this website. Donald Gray, BSc. Mining Engineering and MSc. Civil Engineering, Chief Operating Officer of the Company and a qualified person within the meaning of NI 43-101, has reviewed and approved the technical information.


Mineral Resources

The following is the Mineral Resource Estimate for the Yaraguá and Veta Sur vein systems. Undertaken under the guidance and supervision of Mr. Ivor W.O. Jones, M.Sc., FAusIMM, CPgeo, P.Geo, an independent Qualified person (QP) under NI 43-101 guidelines, the mineral resource estimate is based on information from 1,083 diamond drill-holes totalling 356,053 metres and 9,294 metres of underground channel sampling and is prepared in accordance with NI 43-101.

For additional details, please refer to the January 30, 2019 press release.

Buriticá Resource Statement

BURITICÁ RESOURCE STATEMENT 3G/T AU CUT-OFF
EFFECTIVE JANUARY 26, 2019
Resource Grades Metal
Category Tonnes
(M)
Gold
(g/t)
Silver
(g/t)
Gold
Equivalent
(g/t)
Gold
(Moz)
Silver
(Moz)
Gold
Equivalent
(Moz)
Yaraguá & Veta Sur Vein System Measured 1.28 14.5 61.2 15.5 0.6 2.5 0.64
Indicated 14.16 10.18 40.1 10.9 4.63 18.3 4.94
M&I 15.45 10.54 41.8 11.2 5.23 20.8 5.58
Inferred 20.36 8.87 39.3 9.5 5.81 25.8 6.24
Broad Mineralized Zone (BMZ) Measured 0.12 5.15 14.7 5.4 0.02 0.1 0.02
Indicated 0.46 4.5 11.6 4.7 0.07 0.2 0.07
M&I 0.58 4.64 12.3 4.8 0.09 0.2 0.09
Inferred 1.51 4.41 9.4 4.6 0.21 0.5 0.22
Total  Measured 1.4 13.7 57.2 14.7 0.62 2.6 0.66
Indicated 14.62 10 39.2 10.7 4.7 18.4 5.01
M&I 16.02 10.32 40.8 11 5.32 21 5.67
Inferred 21.87 8.56 37.3 9.2 6.02 26.2 6.46
  1. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues. The Mineral Resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
  2. The quantity and grade of reported Inferred Mineral Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Mineral Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading the Inferred Mineral Resource to an Indicated or Measured Mineral Resource category.
  3. Contained metal and tonnes figures in totals may differ due to rounding.
  4. Gold equivalent grades and ounces was calculated at silver/gold ratio of 60:1. This formula is consistent with the May 11, 2015 Mineral Resource Estimate and is produced for comparative purposes only.
  5. Mineral Resources have been prepared to a minimum 1 metre mining width.

Resource Highlights

  • Measured and Indicated Mineral Resources for the combined vein systems have increased by approximately 19% to 5.58 million gold equivalent ounces (15.45 million tonnes grading 10.54 grams per tonne gold and 41.8 grams per tonne silver).
  • Inferred Mineral Resources for the combined vein systems has increased by approximately 30% to 6.24 million gold equivalent ounces (20.36 million tonnes grading 8.87 grams per tonne gold and 39.3 grams per tonne silver).
  • An initial Mineral Resource has been stated for mineralized material existing between modelled veins within the BMZ and totals 90,000 gold equivalent ounces in the Measured and Indicated Mineral Resource category (0.58 million tonnes grading 4.64 grams per tonne gold and 12.3 grams per tonne silver) and 220,000 gold equivalent ounces in the Inferred Mineral Resource category (1.51 million tonnes grading 4.41 grams per tonne gold and 9.4 grams per tonne silver). Growth potential exists for this BMZ mineralization with additional infill and definition drilling from underground development currently advancing at the Buriticá Project.
  • There has been a significant increase in silver grades and contained silver ounces in all Mineral Resource categories as compared to the 2015 Mineral Resource estimate. This relates to the inclusion of high-grade hanging wall veins in the Veta Sur system and modification of the assaying procedures for silver to include a gravimetric finish for higher grade samples. Re-assaying was also undertaken on historical high-grade silver samples used in prior Mineral Resource estimates.
  • Results from geological mapping of extensive underground development, re-logging of approximately 40% of historical drill core and the new drilling campaign have provided a better understanding of the mineralized systems at Buriticá. This comprehensive work had led to a simplification of the gold-bearing bodies into 27 vein packages (previously 89 veins) and three BMZ bodies. These geology and resource domains will provide the framework for mine production planning.
  • All Mineral Resources were estimated using ordinary kriging methodologies and specific and appropriate grade capping procedures for each domain and high-grade subdomains were utilized. A conservative approach was adopted in the delineation of subdomain boundaries in order to restrict the influence of high-grades, particularly around areas where there were clustered high-grade sampling results.
  • Both the Yaraguá and Veta Sur systems are still open in high-grade mineralization along strike and at depth. There are opportunities for future Mineral Resource expansion and conversion. Exploration priorities for 2019 include delineation and definition of new and existing high-grade BMZ shoots. In addition, the exploration will provide sufficient information for the estimation of Indicated Mineral Resources within high grade pay shoots currently classified as Inferred Mineral Resources in both vein systems.

Technical Information
Mr. David J Reading, M.Sc., FIMMM, Special Advisor to the Company and a Qualified Person within the meaning of NI 43 101, oversaw and supported the Mineral Resource modelling and the geology reinterpretation work and has prepared or supervised the preparation of, or approved, as applicable, the technical information contained above.

The technical information in the mineral resource estimate is based on technical information prepared under the direction and supervision of Mr. Ivor Jones, BSc. (Hons), MSc, FAusIMM, CP Geo., P.Geo of Ivor Jones Pty Ltd. Mr. Jones, an independent Qualified Person (as defined in the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Standards on Mineral Resources and Reserves and NI 43 101).

For further information on the Buriticá Project, please refer to the technical report.

 


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