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Mineral Reserve
Based on work completed by Pincock Allen & Holt (PAH) for the Brisas bankable feasibility study, using an off-site smelter process for treating copper concentrates, the Brisas project is estimated to contain a proven and probable mineral reserve of approximately 9.1 million ounces of gold and 1.15 billion pounds of copper.
The mineral reserve analysis is based on 180,000 meters of diamond drilling in 803 holes and incorporates the Company’s recent 15,000 meter drilling program. PAH has concluded that the Brisas mineral reserve is reliable for the current phase of the project’s feasibility study and that there is upside for additional mineral reserves. The August 2004, estimated proven and probable mineral reserve utilizing traditional flotation and off-site smelter processes is summarized in the following table:
| Class | Reserve
Tonnes
(thousands) | Au Grade
(gpt) | Cu Grade
(%) | Au
Ounces
(thousands) | Cu
Pounds
(millions) | Waste
Tonnes
(thousands) | Total
Tonnes
(thousands) | Strip
Ratio | | Proven | 190,073 | 0.71 | 0.123 | 4,343 | 516 | | | | | Probable | 216,970 | 0.68 | 0.133 | 4,754 | 638 | | | | | Total | 407,043 | 0.70 | 0.129 | 9,097 | 1,154 | 753,012 | 1,160,055 | 1.85 |
The mineral reserve (within a pit design) has been estimated in accordance with the SME Reporting Guide and CIM Standards as adopted by CSA National Instrument 43-101. The mineral reserve was estimated using metal prices of US $350 per ounce gold and US $0.90 per pound copper with an internal revenue cut-off of $2.76 per tonne. The qualified persons involved in the property evaluation and reserve estimate were Raul Borrastero, C.P.G. and Susan Poos P.E. of Pincock Allen & Holt and Brad Yonaka, Exploration Manager for Gold Reserve.
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