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Cozamin Mineral Reserves & Resources

Cozamin Mine Estimated Mineral Reserves as at December 31, 2016

 ClassificationTonnes  Cu Ag Zn Pb Contained
Copper 
Contained
Silver
Contained
Zinc 
Contained
Lead
 (kt)(%) (g/t) (%) (%) (kt) (koz) (kt) (kt) 
Copper Zone - San Roberto
Proven1331.42560.860.3122381     
Probable1,4520.98441.300.36142,075195
Total1,5851.02451.270.36162,313206
Copper Zone - Mala Noche Footwall
Proven1341.80330.610.03214210
Probable 2,6012.18450.290.02573,72271
Total2,7352.16440.300.02593,86581
Copper Zones - Total
Proven2671.61440.730.17438020
Probable4,0531.75440.650.14715,798266

Total Mineral Reserves

4,320

1.74440.660.14756,178286


NOTES: Diego Airo, P.Eng., Senior Mining Engineer at Capstone, is the Qualified Person responsible for the mineral reserves estimates of the San Roberto and Mala Noche Footwall zones, with an effective date of December 31, 2016. Metal prices used in the San Roberto and MNFW zone reserve estimated for copper, silver, zinc, and lead, respectively, are $2.50/lb, $20/oz, $1.00/lb, and $0.90/lb. Processing recoveries were Cu=94%, Ag=72%, Zn=70%, Pb=70%. The exchange rate used is MEX19.00 to US$1.00. Contribution from Pb was not considered because remaining reserves do not contain enough Pb to justify generating a concentrate. A NSR COG of $42.50/t was used for the San Roberto and MNFW zones. Diego Airo, P.Eng., Senior Mining Engineer at Capstone, is the Qualified Person responsible for the mineral reserves estimates of the San Roberto and Mala Noche Footwall zones, with an effective date of December 31, 2016. Metal prices used in the San Roberto and MNFW zone reserve estimated for copper, silver, zinc, and lead, respectively, are $2.50/lb, $20/oz, $1.00/lb, and $0.90/lb. Processing recoveries were Cu=94%, Ag=72%, Zn=70%, Pb=70%. The exchange rate used is MEX19.00 to US$1.00. Contribution from Pb was not considered because remaining reserves do not contain enough Pb to justify generating a concentrate. A NSR COG of $42.50/t was used for the San Roberto and MNFW zones.

Cozamin Mine Estimated Mineral Resources as at December 31, 2016

Classification

Tonnes
(kt)
Grade Contained Metal 
Cu  Ag Zn Pb Cu  Ag  Zn  Pb 
(%)  (g/t) (%) (%) (kt)  (koz)  (kt)  (kt) 
Copper Zone - San Roberto
Measured3591.69601.170.28669641

Indicated

2,8521.19541.920.41344,9115512

Measured + Indicated

3,2111.25541.840.40405,6075913

Inferred

4,5350.57412.570.33266,03811715
Copper Zone - Mala Noche Footwall

Measured

3292.40430.630.03845920

Indicated

3,0932.68540.430.03835,393131

Measured + Indicated

3,4222.65530.450.03915,852151

Inferred

5,0871.71370.530.03875,979272
Copper Zones - Total

Measured

6882.03520.910.16141,15561

Indicated

5,9451.97541.140.2111710,3046813

Measured + Indicated

6,6331.97541.120.2113111,4597414

Inferred

9,6221.17391.490.1711312,01714416

Zinc Zone - San Rafael

Measured

---------

Indicated

1,0910.30474.470.5631,649496

Measured + Indicated

1,0910.30474.470.5631,649496

Inferred

1,4410.20434.140.4731,991607


NOTES: Jeremy Vincent, P.Geo., is the Qualified Person responsible for the preparation of the mineral resource estimates for the San Robert, Mala Noche Footwall, and San Rafael zones, with an effective date of March 31, 2016. The Mineral Resources of the San Roberto and MNFW zones are reported above a NSR of $35/t using respective metal prices for copper, silver, zinc, and lead of $2.50/lb, $20.00/oz, $1.00/lb, and $0.90/lb. Processing recoveries used to calculate the NSR COG are based on historical site operating experiences reflecting recoveries of: Cu=94%; Ag=72%; Zn=70%; Pb=70%. Contribution from Pb was not considered because remaining reserves do not contain enough Pb to justify generating a concentrate. Exchange rate assumed is MEX19 to US$1.00. For the San Rafael resource estimate, the NSR formulae applied in 2014 were maintained, and were based on a head grade containing greater or less than 0.5% Cu. San Rafael mineral resources were reported above a NSR $35/t cut-off using respective metal prices for copper, silver, zinc, and lead of $2.50/lb, $20.00/oz, $0.80/lb, and $0.85/lb. Processing recoveries recoveries of: Cu=41%, Ag=32%, Zn=84%, and Pb=65%. Exchange used assummed is MEX12.50 to US$1.00. No mining has been undertaken in the San Rafael zone since 2009.Jeremy Vincent, P.Geo., is the Qualified Person responsible for the preparation of the mineral resource estimates for the San Roberto, Mala Noche Footwall, and San Rafael zones, with an effective date of March 31, 2016. The Mineral Resources of the San Roberto and MNFW zones are reported above a NSR of $35/t using respective metal prices for copper, silver, zinc, and lead of $2.50/lb, $20.00/oz, $1.00/lb, and $0.90/lb. Processing recoveries used to calculate the NSR COG are based on historical site operating experiences reflecting recoveries of: Cu=94%; Ag=72%; Zn=70%; Pb=70%. Contribution from Pb was not considered because remaining reserves do not contain enough Pb to justify generating a concentrate. Exchange rate assumed is MEX19 to US$1.00. For the San Rafael resource estimate, the NSR formulae applied in 2014 were maintained, and were based on a head grade containing greater or less than 0.5% Cu. San Rafael mineral resources were reported above a NSR $35/t cut-off using respective metal prices for copper, silver, zinc, and lead of $2.50/lb, $20.00/oz, $0.80/lb, and $0.85/lb. Processing recoveries of: Cu=41%, Ag=32%, Zn=84%, and Pb=65%. Exchange used assumed is MEX12.50 to US$1.00. No mining has been undertaken in the San Rafael zone since 2009.