POSSE GOLD PROJECT ON MARA ROSA PROPERTY
Mineral Resource Estimate
A Mineral Resource can only be declared for material that has the potential for economic extraction
at some point in the reasonable future. Mineral Resources are reported at a cut-off grade that meets
this criterion and do not include material that has no reasonable potential to be mined and processed.
In the economic model of the Posse Gold Deposit, the lowest grade of mineable ore is 0.37 g/t gold.
Consequently, the cut-off grade for the Mineral Resource has been set at 0.35 g/t.
The Mineral Resource Estimate includes the Mineral Reserves (see below).
Mineral Reserve Estimate
A Mineral Reserve is that part of the Measured and/or Indicated Resources which, after the application of all
relevant economic, legal and technical factors, results in an estimated tonnage and grade which is the basis of
an economically viable project.
Posse’s Mineral Reserves were based on guidelines set out by the Canadian Institute of Mining Metallurgy and
Petroleum. The economic portion of the Measured and Indicated Resources is identified as 23.8 million dry tonnes
grading 1.18 g/t gold.
NI 43-101 MINERAL RESOURCE AND RESERVE ESTIMATE FOR POSSE GOLD PROJECT
(AUGUST 2020)
|
Category
|
Tonnes (millions)
|
Grade (g/t gold)
|
Contained gold
|
| Mineral Resources |
|
|
|
| Measured |
14 |
1.2 |
510,000 |
| Indicated |
19 |
1.1 |
640,000 |
| Total M&I |
32 |
1.1 |
1,200,000 |
| Inferred |
0.1 |
0.6 |
1,700 |
| Mineral Reserves |
|
|
|
| Proven |
11.8 |
1.20 |
456,000 |
| Probable |
12.0 |
1.16 |
446,000 |
| Total Proven and Probable |
23.8 |
1.18 |
902,000 |
- A gold price of US $1,500/oz is assumed for the Resources, and US$1,400 for the Reserves
- An exchange rate of BRL 4.2 to US$1 is assumed
- Resources include Reserves; a Mineral Reserve is the part of the Measured and/or Indicated Resources which, after the application of all relevant economic, legal, and technical factors, results in an estimated tonnage and grade that is the basis of an economically viable project
- Mineral reserves are based on measured and indicated mineral resources only
- The lowest grade of mineable ore in the economic model of the Posse Deposit ore is 0.37 g/t gold, so a cut-off grade of 0.35 g/t used for the Mineral Resources and Mineral reserves are above an economic cut-off grade of 0.37 g/t gold
- SRK estimated Posse’s Mineral Reserves based on guidelines set out by the Canadian Institute of Mining Metallurgy and Petroleum. SRK identified the economic portion of the Measured and Indicated Resources as 23.8 million dry tonnes grading 1.18 g/t gold.
- Reported to two significant figures and columns may not sum due to rounding
- Keith Whitehouse MAusIMM CP (Geo), AEFS Principal Consultant (Geology) is the Qualified Person for this estimate. Keith has 40 years of experience in the resource sector with over 20 years of mineral resource estimation experience and holds an AusIMM Professional Certificate in the JORC Code. He is, by virtue of his education, experience, and professional association, considered Qualified Persons (QP) as defined in the NI 43-101 standard.
Butia initial resource estimate ON LAVRAS DO SUL PROPERTY
An NI 43-101 compliant gold resource was released in September 2010. The first table shows a resource estimate
using a cut-off grade of 0.3 gold g/t, and the second table shows a resource estimate at a cut-off grade of 0.5
gold g/t.
|
Category
|
Tonnes (millions)
|
Grade (g/t gold)
|
Contained gold (ounces)
|
| Cut-off grade 0.3 g/t gold |
|
|
|
| Indicated |
6.4 |
1.05 |
215,000 |
| Inferred |
12.9 |
0.74 |
308,000 |
| Cut-off grade 0.5 g/t gold |
|
|
|
| Indicated |
5.3 |
1.18 |
201,000 |
| Inferred |
16.8 |
1.07 |
235,000 |
- 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
- Numbers may not sum due to rounding
- Mineral resources are reported in-situ with no dilution provision
- A cut-off-grade of .3 g/t Au was used for resource estimation
- A density or tonnage factor of 2.61 to 2.68 tonnes per cubic metre is applied depending on rock types
- The estimate was prepared by Atticus and Associates (Atticus) of Lima, Peru. Dated July 30, 2010, it is titled NI 43-101 Technical Report, Butia Prospect, Rio Grande do Sul, Brazil
- The qualified persons for the report are Antony John Amberg and Simon Mortimer. Antony John Amberg is a consulting geologist with 25 years of experience, a Chartered Geologist, and a Fellow of the Geological Society of London. He is registered as a competent person for the calculation of mineral resources and reserves by the Chilean Mining Commission, Registration Number 0025. Simon Mortimer is a Professional Geologist and member of the Australian institute mining and metallurgy, Registration Number 300947
For a description of the key assumptions, parameters, and methods used to estimate mineral reserves and resources at
Amarillo’s material properties, as well as data verification procedures and a general discussion of the extent to
which the estimates of scientific and technical information may be affected by any known environmental, permitting,
legal title, taxation, sociopolitical, marketing, or other relevant factors, please see the technical reports for
the company’s material properties as filed by Amarillo on SEDAR at www.sedar.com.