Mineral Reserves and Resources

Mineral reserves and resources are presented below on a 100% project basis.

For additional information, please consult the Technical Reports section of our website.

Notes on Mineral Reserves and Resources:

        1. Total proven and probable mineral reserves are included in total measured and indicated resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral reserves and mineral resources are disclosed on a total project basis (at 100%).
        2. Tonnages are metric tonnes and are rounded to the closet million tonnes. Grades are rounded to the closest “0.0” and contained gold is reported as troy ounces.
        3. Mineral resources for Ollachea are reported above a cut-off of 2.1 g/t Au. Mineral reserves at Ollachea are based upon a gold price of $1,300 per ounce, LOM project operating costs of $49.3 per tonne of ore. Mineral reserves for Ollachea were estimated under the supervision of Neil Schunke of Mining Plus Canada Pty Ltd, who is recognized as a Qualified Person for the purposes of NI 43-101. Mineral resources were estimated under the supervision of Doug Corley of GHD Group Pty, whoc is recognized as a Qualified Person for the purposes of NI 43-101
        4. The Community of Ollachea will earn a 5% free-carry equity interest in the Ollachea Gold Project upon the commencement of commercial production.
        5. Corihuarmi mineral resources based upon mineral resources as at 1 January 2010 less depletion from 1 January 2010 until 29 November 2012 and a change in cut-off grade to 0.18 g/t Au for the Susan Deposit and 0.16 g/t Au for the Diana Deposit. Corihuarmi Inferred Resource is based on scree deposit as at 28 February 2010 less depletion. Mineral resources at Corihuarmi were prepared under the supervision of Mr. Miguel Zulueta Torres of MZT Consulting and Alex Virisheff, Jean-Francois St-Onge, and Doug Corley of Coffey Mining Pty Ltd., who are recognized as Qualified Persons for the purposes of NI 43-101.
        6. For additional technical information, please refer to the associated NI 43-101 technical reports, the Company’s most recent AIF, the Ollachea Optimization press release dated 4 June 2014, which are all available on SEDAR.