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Santo Domingo Mineral Reserves & Resources

Santo Domingo Project Estimated Mineral Reserves as at December 31, 2015


 Stage
Tonnage   Grade  Contained Metal 

 (Mt)
  Cu  Au  Fe  Cu  Au Magnetite Conc.
(%)  (g/t)  (%)  (kt)  (koz)  (Mt) 
Proven Reserves 
Santo Domingo Sur 65.3 0.61 0.08 30.9 398 169.9 8.2
Probable Reserves
Santo Domingo Sur 251.6 0.27 0.04 27.9 679 300.5 48.3
Iris Norte 74.8 0.13 0.01 26.9 97 36 18.7
Total Probable 326.4 0.24 0.03 27.6 777 336.4 66.9

Total Mineral Reserves

391.7

0.30 0.04 28.2 1,175 506.3 75.1

NOTES: The mineral reserves estimate have an effective date of May 2, 2014 and were prepared by Mr. Carlos Guzman, CMC, and employee of NCL. Mineral Reserves are reported as constrained within Measured and Indicated pit designs, and supported by a mine plan featuring variable throughput rates and cut-off optimization. The pit designs and mine plan were optimized using the following economic and technical parameters: metal prices of US$ 2.75/lb Cu, US$ 1,275/oz Au and US$80/dmt of Fe concentrate; recovery to concentrate assumptions of a maximum of 93.6% for Cu and 75% for Au, with magnetite concentrate recovery varying on a block-by-block basis; copper concentrate treatment charges of US$70/dmt, U$0.07/lb of Cu refining charges, US$5.0/oz of Au refining charges, US$48/wmt and US$3/wmt for shipping Cu and Fe concentrates respectively; waste mining cost of $1.53/t, mining cost of US$1.53/t ore, and process and G+A costs of US$7.84/t processed; average pit slope angles that range from 37.6º to 43.6º; a 2% royalty rate assumption, and an assumption of 100% mining recovery. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content.

Santo Domingo Project Estimated Mineral Resources as at December 31, 2015

Deposit Tonnage
(Mt)
CuEq
(%)
Cu
(%)
Au
(g/t)
Fe
(%)
Measured Resources
Santo Domingo Sur 63.3 0.95 0.62 0.083 31.3
Iris 1.54 0.46 0.43 0.052 25.3
Total Measured Resources 64.8 0.94 0.62 0.082 31.2
 
Indicated Resources
Santo Domingo Sur 214.0 0.72 0.33 0.045 27.4
Iris  111.0 0.63 0.19 0.028 26.0
Iris Norte  92.3 0.67 0.12 0.015 26.7
Estrellita 31.7 n/a 0.53 0.050 n/a
Total Indicated Resources 449 - 0.27 0.034 25.0
Total Measured + Indicated Resources 513 - 0.31 0.040 25.8
           
Inferred Resources
Santo Domingo Sur 29.8 0.55 0.26 0.037 23.6
Iris 5.05 0.60 0.18 0.024 26.7
Iris Norte  20.5 0.70 0.08 0.009 28.0
Inferred (Santo Domingo Sur/Iris) 55.4 0.61 0.19 0.025 25.5
Estrellita 2.70 n/a 0.48 0.050 n/a
Total Inferred Resources 58.1 - 0.20 0.026 24.3

NOTES: Mineral resources are reported inclusive of mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The Qualified Person for the estimates is Mr. David Rennie, P.Eng., an employee of Roscoe Postle Associates Inc. Mineral resources for the Santo Domingo Sur, Iris, and Iris Norte deposits have an effective date of August 31, 2012. Mineral resources for the Estrellita deposit have an effective date of October 30, 2007. Mineral Resources for the Santo Domingo Sur, Iris, and Iris Norte deposits are reported using a cut-off grade of 0.25% copper equivalent (CuEq). CuEq grades are calculated using average long-term prices of US$3.50/lb Cu, US$ 1,500/oz Au and US$ 1.94/dmtu Fe (US$ 120/dmt conc. At 62% Fe). The CuEq equation is: Metal Value = Grade*Cm*R%/100*(Price-TCRC-Freight)*(100-Royalty)/100, where Cm is a constant to convert grade of metal, m, to metal price units; R is metallurgical recovery and %Cu Equivalent = (Cu Value + Au Value + Fe Value)/(Cu Value per 1%Cu). An assessment of Mineral Resources for the Santo Domingo Sur, Iris, and Iris Norte deposits was performed using a Lerchs–Grossman pit shell that has the following assumptions: pit slopes averaging 45°; mining cost of US$1.19/t, processing cost of US$ 4.49/t; processing recovery of 85%; selling price of US$2.25/lb, and a selling cost of US$0.247/lb. At the 0.25% CuEq cut-off, all but 5% of the Mineral Resources were captured by the pit shell. On the basis of this result, it was concluded that there was little merit in restricting the Mineral Resources to those blocks contained only within the pit shell. Accordingly, the Mineral Resource inventory was reported in its entirety. Mineral Resources for the Estrellita deposit are reported using a cut-off grade of 0.3% Cu. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content.