On April 11, 2012, mineral resource estimates for the Caspiche Project were prepared by Mr. Ted Coupland, MAusIMM (CP), at the time, Director and Principal Geostatistician of Cube Consulting Pty Ltd (“Cube”). Mr. Patrick Adams MAusIMM(CP), Director and Principal Geologist of Cube has reviewed and validated the April 2012 Mineral Resource noted below.
The April 2012 Mineral Resource reported from within the ‘reasonable prospects’ resource shell are summarised in tables below. Oxide material was reported above 0.18 g/t AuEq1 cut-off and sulphide material was reported above 0.30 g/t AuEq1 cut-off. Note that the PEA does not include inferred mineral resources.
|Material||Class||Tonnes (Mt)||Au g/t||Cu %||Ag g/t||AuEq1 g/t||Au Eq3(MOz)|
|Total Oxide||Meas + Ind||121.5||0.43||-||1.58||0.43||1.7|
|Total Sulphide||Meas + Ind||1,282.1||0.52||0.20||1.17||0.92||37.9|
|Material||Class||Tonnes(Mt)||Au g/t||Cu %||Ag g/t||AuEq1 g/t||Au Eq3(MOz)|
3. AuEq = resource tonnes * AuEq1
1. The following formula was used in calculating AuEq values in each block of the model:
where Au and Cu are the block kriged Au and Cu grades, PAu and PCu are the Au and Cu prices (US$1,150/oz and US$2.50/lb, respectively), and RAu and RCu are the Au and Cu projected metallurgical recoveries, 65% and 85%, respectively for sulphide material and 78% for Au and 11% for Cu in the oxide zone.
A sub set of the April 2012 Mineral Resource, reflected in the table below, using a cut off of 0.75 g/t AuEq2, was selected as appropriate for the reporting of mineral resources intended for underground exploitation based on preliminary economic cut off studies commissioned by Exeter during October 2013.
|Material||Class||Tonnes(Mt)||Au g/t||Cu %||Ag g/t||AuEq2 g/t|
|Total Sulphide||Meas + Ind||810.2||0.67||0.29||1.35||1.22|
2. The following formula was used to calculate AuEq values in each estimated block of the model:
where Au, Ag and Cu are the block kriged gold, silver and copper grades, PAu, PAg and PCu are the gold, silver and copper prices (US$1,250/oz, US$15/oz and US$2.75/lb, respectively). RAu and RCu are the Au and Cu projected metallurgical recoveries based on a number of S % thresholds. The following table shows the recovery factors for gold, silver and copper within the Oxidized, and Sulphide domains and the DP and Non-DP stratigraphic units by sulphur threshold.
Caspiche Recovery Factors (NCL Nov 2013)
|Oxides/Sulphides||Stratigraphic Unit (Domain)||S% Threshold||RAu||RCu||RAg|
|Oxide||OB (100)||No threshold||0.75||0.00||0.34|
|Oxide||All Others||No threshold||0.78||0.00||0.34|
|Sulphide||DP (400)||Less than or equal to 2.0||0.75||0.92||0.40|
|Sulphide||DP (400)||Greater than 2.0 & less than or equal to 2.5||0.725||0.90||0.40|
|Sulphide||DP (400)||Greater than 2.5||0.68||0.86||0.40|
|Sulphide||Non-DP||Less than or equal to 2.5||0.70||0.88||0.40|
|Sulphide||Non-DP||Greater than 2.5||0.68||0.86||0.40|
DP=Diorite porphyry, principal host rock to higher grade mineralization at Caspiche
In the April 2012 Mineral Resource estimate Cube assessed reasonable prospects of economic extraction by applying preliminary economics for potential open pit and underground mining methods. The assessment does not represent an economic analysis of the deposit. Marginal cut-off parameters used in the April 2012 Mineral Resource estimate are as follows:
|Processing (US$/t) Cost||3.4||7.80|
|Gold Price (US$/oz)||1,150||1,400|
|Copper Price (US$/lb)||NA||2.5|
|Refining Cost (US$/oz)||6||6|
|Cut-off AuEq (g/t)||0.12||1.00|
Mineral resources are not mineral reserves and do not have demonstrated economic viability.
The potential development of the April 2012 Mineral Resource may be materially affected by legal, political, environmental or other risks.