Reserves & Resources
The Mineral Resource Estimate for the Last Hope Property is summarized in the table below:
|
Mineral Resource Estimate at 1.8 g/t Au Cut-off (1-5)
|
|||
|---|---|---|---|
|
Classification
|
Tonnes (k)
|
Au g/t
|
Au oz
|
|
Indicated
|
213
|
5.53
|
37,966
|
|
Inferred
|
1,107
|
5.17
|
184,120
|
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, title, taxation, socio-political, marketing, or other relevant issues.
2) The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
3) The Mineral Resources in this Technical Report 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 the CIM Council.
4) The Mineral Resource Estimate is based on 219 drill holes of which 15 holes were drilled in 2012 and 204 holes were historical diamond drill holes. The core from this historical drilling remains intact at the Property and was partially re-assayed in 2012.
5) The underground Mineral Resource grade blocks were quantified above the 1.8 g/t Au cut-off and had exhibited continuity and reasonable potential for extraction by cut and fill and longhole mining methods.
The Mineral Resource Estimate was derived from applying an Au cut-off grade to the block model and reporting the resulting tonnes and grade for potentially mineable areas. The following calculation demonstrates the rationale supporting the Au cut-off grade that determines underground potentially economic portions of the constrained mineralization.
Underground Au Cut-Off Grade Calculation CDN$:
- Au Price US$1,225/oz (approx. two year trailing av’g price at Aug 31/17)
- $US/$CDN Exchange Rate 0.75
- Au Recovery 95%
- Mining Cost $80/tonne mined
- Process Cost (1,000tpd) $15/tonne milled
- General & Administration $5/tonne milled
Therefore, the Au cut-off grade for the underground Mineral Resource Estimate is calculated as follows:
- Operating costs per processed tonne = ($90+$15+ $5) = $110/tonne
- [($110)/[($1,550/oz/31.1035/0.75 x 93% Recovery & Royalty )] = 1.8 g/t
The Au cut-off sensitivities to the Mineral Resource Estimate are demonstrated in the table below:
|
Mineral Resource Estimate Sensitivity
|
||||
|---|---|---|---|---|
|
Category
|
Cut-off Au (g/t)
|
Tonnes
|
Au (g/t)
|
Au (oz)
|
|
Indicated
|
5.0
|
85,422
|
9.07
|
24,922
|
|
4.5
|
98,884
|
8.48
|
26,960
|
|
|
4.0
|
113,377
|
7.93
|
28,924
|
|
|
3.5
|
131,547
|
7.36
|
31,108
|
|
|
3.0
|
154,060
|
6.75
|
33,458
|
|
|
2.8
|
164,300
|
6.51
|
34,409
|
|
|
2.6
|
172,029
|
6.34
|
35,077
|
|
|
2.4
|
180,717
|
6.16
|
35,780
|
|
|
2.2
|
190,608
|
5.96
|
36,510
|
|
|
2.0
|
201,445
|
5.75
|
37,242
|
|
|
1.8
|
213,352
|
5.53
|
37,966
|
|
|
Mineral Resource Estimate Sensitivity
|
||||
|---|---|---|---|---|
|
Category
|
Cut-off Au (g/t)
|
Tonnes
|
Au (g/t)
|
Au (oz)
|
|
Inferred
|
5.0
|
402,657
|
7.96
|
103,055
|
|
4.5
|
552,402
|
7.10
|
126,014
|
|
|
4.0
|
711,350
|
6.45
|
147,477
|
|
|
3.5
|
801,836
|
6.14
|
158,361
|
|
|
3.0
|
872,977
|
5.91
|
165,812
|
|
|
2.8
|
914,920
|
5.77
|
169,694
|
|
|
2.6
|
971,184
|
5.59
|
174,596
|
|
|
2.4
|
1,002,087
|
5.50
|
177,081
|
|
|
2.2
|
1,034,244
|
5.40
|
179,467
|
|
|
2.0
|
1,067,488
|
5.29
|
181,712
|
|
|
1.8
|
1,106,787
|
5.17
|
184,120
|
|
|
Sensitivity to Mineral Resource Estimate of the Last Hope Deposit
|
||||
|---|---|---|---|---|
|
Category
|
Cut-Off Au g/t
|
Tonnes
|
Au g/t
|
Au oz
|
|
Indicated
|
5.0
|
85,422
|
9.07
|
24,922
|
|
|
4.5
|
98,884
|
8.48
|
26,960
|
|
|
4.0
|
113,377
|
7.93
|
28,924
|
|
|
3.5
|
131,547
|
7.36
|
31,108
|
|
|
3.0
|
154,060
|
6.75
|
33,458
|
|
|
2.8
|
164,300
|
6.51
|
34,409
|
|
|
2.6
|
172,029
|
6.34
|
35,077
|
|
|
2.4
|
180,717
|
6.16
|
35,780
|
|
|
2.2
|
190,608
|
5.96
|
36,510
|
|
|
2.0
|
201,445
|
5.75
|
37,242
|
|
Inferred
|
5.0
|
402,657
|
7.96
|
103,055
|
|
|
4.5
|
552,402
|
7.10
|
126,014
|
|
|
4.0
|
711,350
|
6.45
|
147,477
|
|
|
3.5
|
801,836
|
6.14
|
158,361
|
|
|
3.0
|
872,977
|
5.91
|
165,812
|
|
|
2.8
|
914,920
|
5.77
|
169,694
|
|
|
2.6
|
971,184
|
5.59
|
174,596
|
|
|
2.4
|
1,002,087
|
5.50
|
177,081
|
|
|
2.2
|
1,034,244
|
5.40
|
179,467
|
|
|
2.0
|
1,067,488
|
5.29
|
181,712
|
