On a consolidated and attributable basis, estimated contained metal in the Proven and Probable Mineral Reserve categories totalled 5,518 kt of copper, 3,123 kt of zinc, 100 kt of nickel, 936 kt of lead and 6.9 Moz of gold.
Commenting on the
At Chapada, Mineral Resource and Reserves have increased as a result of a successful start to our expanded drilling program since taking ownership. New Mineral Reserves have been added to the existing orebodies and in two new adjacent deposits. Mineral Resources have increased despite the use of more conservative metal price assumptions and the inclusion of only 5,000 m of 2020 drilling ahead of the estimation cut-off date. We now have five drill rigs on site and are planning an increased 60,000 m drilling campaign coupled with a geophysics targeting program for 2021.
At Candelaria, further increases in Mineral Reserves in the Candelaria underground mines will support ongoing underground mine expansion studies and potential increases in the copper production profile. Delineation and extension drilling have again been highly successful at Eagle East with further discovery largely offsetting a full year of mined depletion. And, at Zinkgruvan, ongoing exploration and infill drilling at Dalby has resulted in further increases in the Indicated and Inferred Mineral Resource estimates, supporting the mining studies currently underway to allow future conversion to Mineral Reserves."
2020 Mineral Resource and Reserve Highlights
- Total estimated Candelaria Measured and Indicated Mineral Resources have increased by approximately 18% to 1,179.3 Mt at 0.64% copper, from 998.6 Mt at 0.65% copper reported as of
June 30, 2019 . The increase reflects the continued success of the exploration campaigns, largely in the underground mines, and re-optimized open pits and lower cut-off grades as a result of revised metal price assumptions. - Total estimated Candelaria Proven and Probable Mineral Reserves have also increased to 684.4 Mt at 0.53% copper, from 663.7 Mt at 0.54% copper, with the majority of the increase being in the underground mines.
- Total estimated Candelaria open pit Proven and Probable Mineral Reserves, excluding stockpiles, have decreased slightly and are now 381.1 Mt at 0.49% copper, from 386.8 Mt at 0.49% copper, reflecting additional drill information, reduced cut-off grades and a year of mining depletion.
- Total estimated Candelaria Underground Proven and Probable Mineral Reserves have increased to 160.2 Mt at 0.83% copper, from 148.2 Mt at 0.85% copper. This is a 12.0 Mt increase, or approximate 8%, over last year's estimate, reflecting continued exploration success, particularly in the Candelaria North Sector. This additional mineralization is being included in potential future expansion studies for the combined Candelaria underground mine sectors.
- Total estimated Chapada copper-gold Measured and Indicated Mineral Resources have increased to 1,132.2 Mt at 0.23% copper and 0.14g/t gold, from 1,090.8 Mt at 0.24% copper and 0.15g/t gold reported as of
June 30, 2019 . This increase reflects the inclusion of approximately 18,500 m of drilling since taking ownership and prior to the cut-off date for thisJune 2020 estimation. Ongoing exploration success has increased Mineral Resources in extensions of the known mineralized bodies and in the new Buriti Norte and Jatoba deposits to the east of the mine. This discovery has been offset by the effects of more conservative metal price assumptions for Mineral Resource estimation of$3.45 /lb copper and$1,495 /oz gold, compared with$4.00 /lb copper and$1,600 /oz gold previously, as well as mining depletion. - Total estimated Chapada Proven and Probable Mineral Reserves have increased to 759.7 Mt at 0.23% copper and 0.15g/t gold, from 738.8 Mt at 0.24% copper and 0.15g/t gold. New Mineral Reserves have been added in extensions to the known mineralization and in the new Buriti Norte and Jatoba deposits adjacent to the current open pits. Continued exploration drilling in these and other near mine orebodies will support ongoing mine expansion studies.
- The total combined estimated Eagle and Eagle East Proven and Probable Mineral Reserves have again remain virtually unchanged from last year at 3.9 Mt at 2.6% nickel and 2.1% copper with mining depletion at Eagle offset by additions from extensions to the mineralization and the upgrading of Inferred Mineral Resources to Indicated by infill drilling at Eagle East. The Eagle East Probable Mineral Reserve estimate has increased to 2.7 Mt at 2.9% nickel and 2.4% copper and the overall Eagle mine life is now extended to at least late 2025.
- Estimated copper and zinc Measured and Indicated Mineral Resources at Neves-Corvo are virtually unchanged from last year at 61.9 Mt at 2.3% copper and 71.3 Mt at 6.9% zinc respectively with in-mine exploration and infill drilling success offsetting mine depletion.
- Copper Proven and Probable Mineral Reserve estimates at Neves-Corvo have increased to 29.7 Mt at 2.0% copper, from 27.9 Mt at 2.2% copper reported at
June 30, 2019 , with the changes representing revised metal price assumptions and lower cut-off grades offsetting higher grade mining depletion. Zinc Proven and Probable Mineral Reserve estimates increased slightly to 30.1 Mt at 7.3% zinc. - At Zinkgruvan, continued drilling in the Dalby area has converted Inferred Mineral Resources to Indicated. Total estimated zinc Measured and Indicated Mineral Resources now stand at 22.6 Mt at 8.7% zinc and 4.0% lead and Inferred Mineral Resources at 19.0 Mt at 7.6% zinc and 3.5% lead. Exploration and infill drilling from underground continues on Dalby in support of mine design and study work for future conversion to Mineral Reserves. Drilling has also added Inferred and Indicated Mineral Resource in the extensions of known mineralization at the mine with particularly encouraging results down dip in the Cecilia orebody.
- Zinkgruvan estimated zinc Proven and Probable Mineral Reserves are now 8.8 Mt at 7.9% zinc and 3.6% lead while estimated copper Proven and Probable Mineral Reserves have increased to 3.1 Mt at 1.9% copper.
The table attached to this news release summarizes the Mineral Resource and Mineral Reserve estimates for each of the Company's mines as of
About
The information in this release is subject to the disclosure requirements of
Cautionary Statement in Forward-Looking Information
Certain of the statements made and information contained herein is "forward-looking information" within the meaning of applicable Canadian securities laws. All statements other than statements of historical facts included in this document constitute forward-looking information, including but not limited to statements regarding the Company's plans, prospects and business strategies; the Company's guidance on the timing and amount of future production and its expectations regarding the results of operations; expected costs; permitting requirements and timelines; timing and possible outcome of pending litigation; the results of any Feasibility Study, or Mineral Resource and Mineral Reserve estimations, life of mine estimates, and mine and mine closure plans; anticipated market prices of metals, currency exchange rates, and interest rates; the development and implementation of the Company's Responsible Mining Management System; the Company's ability to comply with contractual and permitting or other regulatory requirements; anticipated exploration and development activities at the Company's projects; and the Company's integration of acquisitions and any anticipated benefits thereof. Words such as "believe", "expect", "anticipate", "contemplate", "target", "plan", "goal", "aim", "intend", "continue", "budget", "estimate", "may", "will", "can", "could", "should", "schedule" and similar expressions identify forward-looking statements.
Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management, including that the Company can access financing, appropriate equipment and sufficient labour; assumed and future price of copper, nickel, zinc, gold and other metals; anticipated costs; ability to achieve goals; the prompt and effective integration of acquisitions; that the political environment in which the Company operates will continue to support the development and operation of mining projects; and assumptions related to the factors set forth below. While these factors and assumptions are considered reasonable by
Cautionary Notes to Investors – Mineral Resource and Reserve Estimates
In accordance with applicable Canadian securities laws, all Mineral Reserve and Mineral Resource estimates of the Company disclosed or referenced in this news release have been prepared in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101"), classified in accordance with
Mineral Resource Estimates –
Mineral Resources - Inclusive of Mineral Reserves | Contained Metal | |||||||||||||||
Category | 000's | Cu | Zn | Pb | Au | Ag | Ni | Cu | Zn | Pb | Au | Ag | Ni | |||
Tonnes | % | % | % | g/t | g/t | % | kt | kt | kt | Moz | Moz | kt | Interest | |||
Copper | ||||||||||||||||
Candelaria | Measured | 434,834 | 0.46 | 0.11 | 1.6 | 2,019 | 1.5 | 22 | 80% | |||||||
Measured (Stockpile) | 85,086 | 0.32 | 0.09 | 1.3 | 270 | 0.2 | 4 | 80% | ||||||||
Indicated | 38,410 | 0.33 | 0.09 | 1.3 | 127 | 0.1 | 2 | 80% | ||||||||
Inferred | 5,958 | 0.24 | 0.05 | 0.7 | 14 | - | - | 80% | ||||||||
Candelaria | Measured | 35,695 | 0.41 | 0.09 | 0.4 | 147 | 0.1 | - | 80% | |||||||
La | Indicated | 39,697 | 0.39 | 0.09 | 0.4 | 155 | 0.1 | - | 80% | |||||||
Inferred | 17,208 | 0.38 | 0.09 | 0.4 | 66 | - | - | 80% | ||||||||
Candelaria | Measured | 272,939 | 0.93 | 0.22 | 3.1 | 2,530 | 1.9 | 27 | 80% | |||||||
Underground | Measured (Stockpile) | 63 | 0.93 | 0.20 | 2.5 | 1 | - | - | 80% | |||||||
Indicated | 272,529 | 0.85 | 0.19 | 2.6 | 2,324 | 1.7 | 23 | 80% | ||||||||
Inferred | 54,452 | 0.85 | 0.17 | 2.2 | 460 | 0.3 | 4 | 80% | ||||||||
Chapada | Measured | 494,059 | 0.25 | 0.15 | 1,221 | 2.4 | 100% | |||||||||
Copper | Measured (Stockpile) | 115,385 | 0.22 | 0.15 | 251 | 0.6 | 100% | |||||||||
Indicated | 522,755 | 0.22 | 0.14 | 1,167 | 2.3 | 100% | ||||||||||
Inferred | 171,048 | 0.22 | 0.08 | 372 | 0.4 | 100% | ||||||||||
Chapada | Measured | 12,737 | 0.42 | 0.2 | 100% | |||||||||||
Suruca Gold | Indicated | 134,780 | 0.54 | 2.3 | 100% | |||||||||||
Inferred | 12,565 | 0.48 | 0.2 | 100% | ||||||||||||
Neves-Corvo | Measured | 9,823 | 3.6 | 0.9 | 0.3 | 44 | 351 | 85 | 28 | 14 | 100% | |||||
Indicated | 52,124 | 2.1 | 0.8 | 0.3 | 43 | 1,072 | 437 | 180 | 72 | 100% | ||||||
Inferred | 12,640 | 1.8 | 0.8 | 0.3 | 33 | 227 | 101 | 40 | 14 | 100% | ||||||
Semblana | Inferred | 7,807 | 2.9 | 25 | 223 | 6 | 100% | |||||||||
Zinkgruvan | Measured | 3,632 | 2.3 | 0.3 | 36 | 82 | 12 | 4 | 100% | |||||||
Indicated | 463 | 2.0 | 0.9 | 38 | 9 | 4 | 1 | 100% | ||||||||
Inferred | 241 | 2.0 | 0.5 | 35 | 5 | 1 | - | 100% | ||||||||
Zinc | ||||||||||||||||
Neves-Corvo | Measured | 11,246 | 0.3 | 8.0 | 1.8 | 67 | 36 | 897 | 204 | 24 | 100% | |||||
Indicated | 60,007 | 0.3 | 6.7 | 1.4 | 61 | 206 | 4,041 | 836 | 117 | 100% | ||||||
Inferred | 3,677 | 0.4 | 5.8 | 1.4 | 63 | 13 | 214 | 51 | 7 | 100% | ||||||
Zinkgruvan | Measured | 6,687 | 7.9 | 3.0 | 74 | 530 | 202 | 16 | 100% | |||||||
Indicated | 15,909 | 9.0 | 4.4 | 81 | 1,425 | 703 | 41 | 100% | ||||||||
Inferred | 18,981 | 7.6 | 3.5 | 82 | 1,439 | 661 | 50 | 100% | ||||||||
Nickel | ||||||||||||||||
Eagle | Measured | 751 | 2.2 | 0.2 | 2.2 | 17 | 17 | 100% | ||||||||
Indicated | 477 | 1.6 | 0.1 | 2.1 | 8 | 10 | 100% | |||||||||
Indicated | 2,579 | 2.7 | 0.3 | 10 | 3.3 | 71 | - | 1 | 86 | 100% | ||||||
Inferred | 21 | 0.9 | 0.1 | 1.0 | - | - | - | - | 100% | |||||||
10,551 | 7,430 | 2,153 | 12.3 | 352 | 113 | |||||||||||
Note: totals may not summate correctly due to rounding | not including Inferred Resources |
Mineral Reserve Estimates –
Mineral Reserves | Contained Metal | |||||||||||||||
Category | 000's | Cu | Zn | Pb | Au | Ag | Ni | Cu | Zn | Pb | Au | Ag | Ni | |||
Tonnes | % | % | % | g/t | g/t | % | kt | kt | kt | Moz | Moz | kt | Interest | |||
Copper | ||||||||||||||||
Candelaria | Proven | 355,519 | 0.49 | 0.11 | 1.6 | 1,732 | 1.3 | 18 | 80% | |||||||
Proven (Stockpile) | 85,086 | 0.32 | 0.09 | 1.3 | 270 | 0.2 | 4 | 80% | ||||||||
Probable | 25,622 | 0.31 | 0.08 | 1.1 | 81 | 0.1 | 1 | 80% | ||||||||
Total | 466,227 | 0.45 | 0.11 | 1.5 | 2,082 | 1.6 | 23 | 80% | ||||||||
Candelaria | Proven | 32,702 | 0.42 | 0.09 | 0.4 | 136 | 0.1 | - | 80% | |||||||
La | Probable | 25,297 | 0.40 | 0.09 | 0.4 | 102 | 0.1 | - | 80% | |||||||
Total | 58,000 | 0.41 | 0.09 | 0.4 | 238 | 0.2 | 1 | 80% | ||||||||
Candelaria | Proven | 79,845 | 0.86 | 0.20 | 3.2 | 687 | 0.5 | 8 | 80% | |||||||
Underground | Proven (Stockpile) | 63 | 0.93 | 0.20 | 2.5 | 1 | - | - | 80% | |||||||
Probable | 80,311 | 0.81 | 0.18 | 2.6 | 648 | 0.5 | 7 | 80% | ||||||||
Total | 160,219 | 0.83 | 0.19 | 2.9 | 1,335 | 1.0 | 15 | 80% | ||||||||
Chapada | Proven | 403,695 | 0.24 | 0.16 | 983 | 2.1 | 100% | |||||||||
Copper | Proven (Stockpile) | 115,385 | 0.21 | 0.15 | 243 | 0.5 | 100% | |||||||||
Probable | 240,573 | 0.22 | 0.12 | 533 | 1.0 | 100% | ||||||||||
Total | 759,652 | 0.23 | 0.15 | 1,759 | 3.6 | 100% | ||||||||||
Chapada | Proven | 11,454 | 0.42 | 0.2 | 100% | |||||||||||
Suruca Gold | Probable | 53,741 | 0.53 | 0.9 | 100% | |||||||||||
Total | 65,195 | 0.51 | 1.1 | 100% | ||||||||||||
Neves-Corvo | Proven | 5,199 | 3.1 | 0.8 | 0.3 | 31 | 162 | 43 | 16 | 5 | 100% | |||||
Probable | 24,494 | 1.8 | 0.7 | 0.2 | 30 | 433 | 181 | 61 | 24 | 100% | ||||||
Total | 29,693 | 2.0 | 0.8 | 0.3 | 30 | 596 | 224 | 76 | 29 | 100% | ||||||
Zinkgruvan | Proven | 2,825 | 1.9 | 0.2 | 30 | 54 | 7 | 3 | 100% | |||||||
Probable | 274 | 1.7 | 0.8 | 33 | 5 | 2 | - | 100% | ||||||||
Total | 3,099 | 1.9 | 0.3 | 30 | 58 | 9 | 3 | 100% | ||||||||
Zinc | ||||||||||||||||
Neves-Corvo | Proven | 4,713 | 0.3 | 8.2 | 2.2 | 71 | 14 | 387 | 105 | 11 | 100% | |||||
Probable | 25,401 | 0.3 | 7.1 | 1.7 | 61 | 82 | 1,813 | 436 | 49 | 100% | ||||||
Total | 30,114 | 0.3 | 7.3 | 1.8 | 62 | 96 | 2,200 | 541 | 60 | 100% | ||||||
Zinkgruvan | Proven | 3,393 | 7.7 | 3.4 | 78 | 263 | 115 | 8 | 100% | |||||||
Probable | 5,393 | 7.9 | 3.8 | 84 | 427 | 204 | 14 | 100% | ||||||||
Total | 8,786 | 7.9 | 3.6 | 81 | 690 | 319 | 23 | 100% | ||||||||
Nickel | ||||||||||||||||
Eagle | Proven | 728 | 1.8 | 0.2 | 1.9 | 13 | - | 14 | 100% | |||||||
Probable | 474 | 1.3 | 0.1 | 1.7 | 6 | - | 8 | 100% | ||||||||
Probable | 2,707 | 2.4 | 0.3 | 5 | 2.9 | 65 | - | 0.5 | 78 | 100% | ||||||
Total | 3,909 | 2.1 | 0.2 | 4 | 2.6 | 84 | - | 0.5 | 100 | 100% | ||||||
Note: totals may not summate correctly due to rounding | 5,518 | 3,123 | 936 | 6.9 | 146 | 100 |
Notes on Mineral Resource and Mineral Reserve Tables
Mineral Resources and Mineral Reserve estimates are shown on a 100% basis for each mine. The Measured and Indicated Mineral Resource estimates are inclusive of those Mineral Resource estimates modified to produce the Mineral Reserve estimates. All estimates are prepared as at
Estimates for all operations are prepared by or under the supervision of and verified by a Qualified Person as defined in NI 43-101 or have been audited and verified by independent Qualified Persons on behalf of
Mineral Reserves for all active mines have been estimated using metal prices of
Candelaria and Ojos
Candelaria and La Española open pit Mineral Resource estimates are reported within a conceptual pit shell based on metal prices of
For further information, refer to the Technical Report entitled Technical Report for the
Chapada
The Chapada and Suruca SW copper-gold Mineral Resource estimates are reported within a conceptual pit shell based on metal prices of
For further information, refer to the Technical Report entitled Technical Report on the
Eagle and
The Eagle Mineral Resources and Reserves are reported above a fixed NSR cut-off of
For further information, refer to the Technical Report entitled Technical Report on the
Neves-Corvo and Semblana
For further information, refer to the Technical Report entitled NI 43-101 Technical Report for the
Zinkgruvan
The zinc Mineral Resources are estimates within geological volumes based at a nominal NSR cut-off of
For further information, refer to the Technical Report entitled NI 43-101 Technical Report for the
SOURCE
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