Reserve & Resources

MTV Mineral Resource Estimate

Classification Tonnes
(Kt)
Grade
(CuT%)
Contained Cu
(Kt)
Contained Cu
(000lbs)
Measured & Indicated Resources (inclusive of mineral reserves)
Measured 5,530 1.42% 7,830 172,674
Indicated 12,774 0.87% 11,113 244,581
Total Measured & Indicated 18,304 1.03% 18,853 417,255
Inferred 3,457 1.11% 3,837 84,408

Reported Mineral Resources are inclusive of Mineral Reserves declared below. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. The CIM definitions were followed for the classification of Indicated and Inferred Mineral Resources. 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 Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated Mineral Resource category. All figures have been rounded to reflect the relative precision of the estimates. Cut-off grades vary by deposit to reflect likely mining methods, variations in costs and slight variances in expected metal recovery by deposit.

Mineral resources are inclusive of Mineral Reserves and are reported with an effective date of January 1, 2018. The Qualified Person for the Mineral Resource estimate is Michael G. Hester, Vice President, IMC, M.S. Mining Engineering.

 

 

MTV Mineral Reserve Estimate 

Classification Tonnes
(Kt)
Grade
(CuT%)
Contained Cu
(Kt)
Contained Cu
(000lbs)
Don Gabriel Manto
Proven 898 0.80% 7.1 15,653
Probable 4,270 0.82% 34.9 76,941
Total Proven & Probable 5,168 0.81% 42.1 92,815
Papomono Masivo
Proven 2,559 1.51% 38.7 85,319
Probable 508 1.48% 7.5 16,535
Total Proven & Probable 3,067 1.51% 46.2 101,853
Total Proven & Probable 8,235 1.07% 88.3 194,668

 

The Qualified Persons for the Mineral Reserve estimates are Michael G. Hester, FAusIMM, an IMC employee for the Don Gabriel Manto Mineral Reserves and Alfonso Ovalle, RM CMC, a Wood employee, for the Papomono Masivo mineral reserves estimate. The effective date of the Mineral Reserve estimate is January 1, 2018 for the Don Gabriel Manto and July 1, 2018 for Papomono Masivo. For the open pit mining, all mineral reserves are contained within an optimized pit shell. Mining will use conventional open pit methods and equipment. Direct mining costs are estimated averaging US$2.15/t of material mined and $1.95/t per waste tonne. The overall slope angle was 50°. Minimal dilution and ore loss are incorporated into the block model. For mine planning and mineral reserve estimation a diluted model was constructed. Blocks with less than 30% manto solid contained in them were excluded as lost ore. Blocks with between 30% and 99.9% manto solid contained in them were diluted to full blocks with a dilution grade of 0.1% TCu. For the underground mining, all mineral resources within the cave outline have been converted to probable and proven mineral reserves. This includes low-grade indicated mineral resource and inferred mineral resource assigned zero grade that is treated as dilution. A footprint cut-off 0.40% TCu for the inclined block cave and 0.47% TCu for front caving was used to define the footprint and column heights. An average dilution entry point of 40% of the column height was used. The NSR calculation assumed metal prices of US$2.75/lb Cu. Metallurgical assumptions in the NSR include recoveries of 89.37% for Cu. The recoveries correspond to the chloride leach process, currently implemented in the process plant. Processing costs for material sent to the heap leach are US$9.64/t for underground mining and US$9.73/t for open pit. General and administration costs were assumed as US$0.20/lb Cu and the SX/EW costs were assumed as US$0.19/lb Cu. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal.

 

View Technical Report 

 

See the National Instrument 43-101 technical report entitled Minera Tres Valles Copper Project Salamanca, Coquimbo Region, Chile” with an effective date of October 4, 2018 and dated December 14, 2018 for complete details, available on the Company’s website at srhi.ca or Sedar profile at sedar.com.