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Cozamin Mineral Reserves & Resources

Cozamin Mine Estimated Mineral Reserves as at December 31, 2017

 ClassificationTonnes  Cu Ag Zn Pb Contained
Copper 
Contained
Silver
Contained
Zinc 
Contained
Lead
 (kt)(%) (g/t) (%) (%) (kt) (koz) (kt) (kt) 
Copper Zone - San Roberto
Proven122 1.42570.830.33     222310
Probable1,1390.95451.440.40111,659165
Total1,2611.00461.380.40131,882175
Copper Zone - Mala Noche Footwall
Proven1251.81330.630.032133     10
Probable 1,8912.15450.280.02412,75950
Total2,0162.13450.300.02432,89260
Total - Copper Zones
Proven2471.62450.730.18435620
Probable3,0301.70450.710.17524,418225

Total Mineral Reserves

3,277

1.69450.720.17564,774235


NOTES: Pooya Mohseni, P.Eng., Director of Technical Services at Capstone Mining Corp., is the Qualified Person for the Cozamin Mineral Reserve. Disclosure of the Cozamin Mine Mineral Reserves as of December 31, 2017 was completed using fully diluted mineable stope shapes generated by the Maptek Vulcan Mine Stope Optimizer software and estimated using the 2016 MNFW and 2017 MNV resource block models created by J. Vincent, P.Geo., of Capstone Mining Corp. The Reserves are based on a US$ 42/t NSR cut-off. The NSR formula used for the Reserves was based US$ 2.50/lb Cu, US$ 20/lb Ag, US$ 1.0/lb Zn, MEX 18.5 to USD 1.0, and metallurgical recoveries of 94.5% Cu, 72% Ag, 70% Zn. The resulting NSR formula is $42.425*%Cu + 0.364*Agppm + 8.123*Zn%. Note that zero value is attributed to Pb because the circuit is expected to be used minimally due to low Pb concentrations. Tonnage and grade estimates include dilution and recovery allowances. Figures may not sum due to rounding.

Cozamin Mine Estimated Mineral Resources as at March 31, 2018 – Inclusive of Mineral Reserves

Classification

Tonnes
(kt)
Grade Contained Metal 
Cu  Ag Zn Pb Cu  Ag  Zn  Pb 
(%)  (g/t) (%) (%) (kt)  (koz)  (kt)  (kt) 
Copper Zone - San Roberto
Measured4091.2353   1.230.40 569652

Indicated

3,2330.99431.600.38324,4785212

Measured + Indicated

3,6421.02441.560.38375,1745714

Inferred

4,5340.63361.490.14295,17868
Copper Zone - Mala Noche Footwall

Measured

---------

Indicated

9,3501.93430.540.0718012,896506

Measured + Indicated

9,3501.93430.540.0718012,896506

Inferred

5,3541.59441.030.41857,5845522
Total - Copper Zones

Measured

4091.23531.230.40569652

Indicated

12,5831.69430.810.1521217,37410218

Measured + Indicated

12,9921.67430.830.1621718,07010720

Inferred

9,8881.15401.240.2911412,76212328
Zinc Zone - San Roberto Zinc

Measured

---------
Indicated 4230.16263.570.641358153
Measured + Indicated 4230.16263.570.641358153
Inferred 8900.10233.200.371653283
Zinc Zone - San Rafael

Measured

---------

Indicated

2,253     0.28453.560.5363,2498012

Measured + Indicated

2,2530.28453.560.5363,2498012

Inferred

3,7910.22343.020.3284,16411512
Total - Zinc Zones
Measured --------
Indicated 2,6760.26423.560.5573,6089515
Measured + Indicated 2,6760.26423.560.5573,6089515
Inferred4,6810.20323.060.3394,81714315
Total Mineral Resources (Copper + Zinc Zones)
Measured 4091.23531.230.40569652
Indicated15,2591.44431.290.2221920,98219733
Measured + Indicated15,6681.43431.290.2222421,67820235
Inferred 14,5690.85381.830.3012317,57826644


NOTES: Garth Kirkham, P.Geo., FGC, is the independant Qualified Person responsible for the disclosure of Cozamin Mineral Resources. Mineral resources are reported at a cut-off of NSR US$42 using the NSR2018 formula: Cu*61.676+Ag*0.354+Zn*14.521+Pb*11.208. Metal price assumptions (in US$) used to calculate the NSR for all deposits are: Cu = $3.50/lb, Ag = $18.00/oz, Zn = $1.20/lb, and Pb = $1.00/lb. An exchange rate of MX$18.50 per US$1 is assumed. The following metal recoveries are used: 90% Cu, 74% Ag, 79% Zn, 76% Pb. Totals may not sum exactly due to rounding.