TSX-V: SGN $0.05

Operations

Show printable version of 'Mineral Resource & Reserve Estimate' in a New Window

Mineral Ridge

Mineral Resource & Reserve Estimate
On July 12, 2017 the Company reported the Mineral Ridge leach pad resource estimate by Mine Technical Services ("MTS") of Reno, Nevada. As of June 29, 2017 the leach pad contained an estimated 7.1 MT at an average grade of 0.017 oz./ton or 121,700 ounces of gold in the Measured & Indicated category. Since June 29, 2017, newly mined material from the available open-pit resource has been placed on the pad and will continue to be placed through October 2017. The material added in this time period is not included as it has not been validated as part of the current mineral resource estimate.

It is assumed that as the leach pad is mined, there will be no selectivity of the material to be processed, and therefore, the mineral resources presented represent a global estimate of the tonnage and grade.

Ordinary Kriging was used for the gold resource estimation with Inverse Distance, Inverse Distance Squared and Nearest Neighbor estimates serving as validation models. Silver estimates were run using a single Inverse Distance model and a Nearest Neighbor estimate as a validation model.

For reasonable prospects of eventual economic extraction, the gold price used is the 3-year trailing average gold price through June 2017. The process recovery is that obtained by Kappes, Cassiday & Associates ("KCA") test-work using reasonable mill-scenario. The processing cost was provided by Mineral Ridge using actual Mineral Ridge Mine labor costs, and conceptual mill processing costs estimated by Novus for a 4,000 tpd mill operation.

Table 1: Mineral Ridge Mineral Resource Estimate
Mineral Resource Classification Tons
(kt)
Au
(opt)
Ag
(opt)
Contained
Au (koz)
Contained
Ag (koz)
Measured 2,895 0.017 0.016 48.5 46.4
Indicated 4,220 0.017 0.018 73.2 74.1
Measured & Indicated 7,115 0.017 0.017 121.7 120.4
Inferred 76 0.016 0.027 1.2 2.0

Notes:
  1. The effective date of the Mineral Resource estimate is June 29, 2017.
  2. The Qualified Person for the estimate is Mr Ian Crundwell, P.Geo.
  3. Mineral Resources are quoted only for the Mineralized Leach Pad.
  4. Mineral Resources are contained within the Mineral Ridge leach pad facility with the following assumptions:
    a. A long-term gold price of US$1,216/oz.
    b. Assumed process costs are US$11/t.
    c. Metallurgical recovery for gold is 91%.
  5. Rounding may result in apparent differences between when summing tons, grade and contained metal content.
  6. Tonnage and grade measurements are in Imperial units. Grades are reported in opt.
  7. The resource estimate was prepared with reference to CIM Definition Standards for Mineral Resources and Mineral Reserves (2014) and CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (2003).
  8. The resource estimate was prepared by qualified persons, Todd Wakefield, MSc, SME, Ian Crundwell, BSc, PGeo and Mike Drozd, PhD, SME of Mine Technical Services Ltd.
  9. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Given the nature of the reclaimed material on the heap leach pad and the method of mining, the assumption is that all material will be mined and processed, less any material left in place due to permit restrictions and facility location. Allowance has been made for facility location which excludes 260,000 tons, which must remain in place, according to the heap material mining and tailings placement design completed by Newfields.

Based on the criteria above, the Mineral Reserve Estimate is provided in Table 2 below. Given the positive economic analysis of the Project, the mill feed material can in fact be considered a Mineral Reserve.

Table 2: Mineral Ridge Mineral Reserve Estimate
Mineral Reserve Classification Tons
(kt)
Au
(opt)
Ag
(opt)
Contained
Au (koz)
Contained
Ag (koz)
Proven 2,895 0.017 0.016 48.5 46.4
Probable 4,220 0.017 0.018 73.2 74.1
Less Material Remaining in Place (260) 0.017 0.017 (4.5) (4.6)
Total Proven & Probable 6,855 0.017 0.017 117.2 115.9

Notes:
  1. Mineral Resources are contained within the Mineral Ridge leach pad facility with the following assumptions:
    a. A long-term gold price of US$1,216/oz.
    b. Assumed process costs are US$11/t.
    c. Metallurgical recovery for gold is 91%.
  2. Rounding may result in apparent differences between when summing tons, grade and contained metal content.
  3. Tonnage and grade measurements are in Imperial units. Grades are reported in opt.
  4. The reserve estimate was prepared by qualified person, Ian Crundwell, BSc, PGeo of Mine Technical Services Ltd.

A NI 43-101 compliant technical report in support of the reserve estimate and the associated feasibility study will be filed on SEDAR within 45 days of the Company's October 10, 2017 news release.



You can view the Previous Mineral Ridge item: Geology & Mineralization You can view the Next Mineral Ridge item: Feasibility Study