The Southeast Zone NI 43-101 compliant resource is 227.5 million tonnes at 0.31% copper (1.54 billion pounds of copper).


The Southeast Zone NI 43-101 compliant resource is:

227.5 million tonnes at 0.31% copper for 1.542 billion pounds of copper

The resource is limited to the Southeast Zone, which is one of several zones of mineralization on the property and provided a glimpse of the overall potential of the Woodjam Property. The resource is inferred and is open pit constrained using the parameters indicated below. The resource is reported only in regards to copper content although accessory gold, molybdenum and silver occur, but are not defined to a level of confidence sufficient to be included in the resource estimation.

This drill hole data, mapping data and geophysical data were used to interpret geology and mineralization domains for modeling. Copper was estimated using a recoverable resource estimation method called multivariate uniform conditioning – an established estimation methodology, which ensures that the theoretical grade-tonnage curve is honored by the estimates.

Parameters used to define the theoretical pit:

1.)    The disclosed mineral resource is reported using a US$7.50/t net smelter return (NSR) cut-off grade within an optimized pit shell assuming processing costs of US$5.10/t, G&A costs of US$1.40/t and sustaining costs of US$1.00/t for a 30,000 t/day mining rate (this equates to a cut-off grade of 0.16% copper).

2.)    Copper price at US$3.90/lb.

3.)    Gold price at US$1,450/oz.

4.)    Recoveries estimated to be 80% for copper and 70% for gold, based on initial metallurgical testing.

5.)    Bulk density of fresh rock is estimated to be 2.65 t/m3.

6.)    Copper-gold concentrate shipping, handling, insurance and all other off site charges estimated to be US$157/wet metric tonne concentrate. Concentrate grade estimated at 30% copper.

7.)    Overall pit slopes estimated to be 27° for till, 42° for broken fresh rock and 47° for unbroken fresh rock.