Zacatecas projects
Resource Estimate
Resource Statement for the San Acacio silver project located in Zacatecas, Mexico: Giroux Consultants Ltd., Effective Date April 1, 2014, Authored by Gary Giroux, MASc., P.Eng. and Jim Cuttle, B.Sc., P.Geo. using industry standard methods that conform with the CIM Mineral Resource and Mineral Reserve definitions referred to in National Instrument 43-101, Standards of Disclosure for Mineral Projects, and utilizing Gemcom GEMS V.6.2.3.2TM software. A total of 10,234.6 meters have been drilled in 44 holes and 233 trench and chip samples; 8,873.4 meters are included in the current resource model. The 44 holes included in the Property’s resource estimate were positioned within a potentially underground mineable area comprised of the Veta G and Veta C veins. The resource estimate was generated using a 100 g/t silver-equivalent cut-off grade, and considers and assumes 100% silver recovery. A summary of the Inferred mineral resource estimate is listed below:
| Vein | Tonnes > Cut-off(tonnes) | Grade>Cut-off | Contained Metal | |||||
|---|---|---|---|---|---|---|---|---|
| Ag (g/t) |
Au (g/t) |
AgEq (g/t) |
Ag (ozs) |
Au (ozs) |
AgEq (ozs) |
|||
| VETA G | 2,150,000 | 192.43 | 0.19 | 204.66 | 13,302,000 | 10,000 | 14,147,000 | |
| VETA C | 739,000 | 153.28 | 0.08 | 158.66 | 3,642,000 | 1,900 | 3,770,000 | |
| TOTAL | 2,889,000 | 182.42 | 0.16 | 192.89 | 16,944,000 | 11,900 | 17,917,000 | |
The data consists of diamond drill holes, underground chip samples, underground drill holes and surface trench samples from Veta G (Main vein) and Veta C (Hanging wall vein or HW). Samples include both mineralized quartz breccia vein and mineralized backfill material in old stopes. Of a total of 203 composites across the three veins 99 had assays for Cu, Pb and Zn. At this time only Ag and Au were estimated into the resource. All of the resource is categorized as inferred. Results at various silver equivalent cut-off grades are tabulated below.
San Acacio Veta G Inferred Resource:
| Ag Cut-off (g/t) | Tonnes > Cut-off (tonnes) | Grade>Cut-off | Contained Metal | ||
|---|---|---|---|---|---|
| Ag (g/t) |
Au (g/t) |
Ag (ozs) |
Au (ozs) |
||
| 40.0 | 2,810,000 | 160.12 | 0.17 | 14,466,000 | 20,000 |
| 50.0 | 2,500,000 | 174.71 | 0.18 | 14,043,000 | 10,000 |
| 60.0 | 2,360,000 | 182.03 | 0.18 | 13,812,000 | 10,000 |
| 65.0 | 2,280,000 | 185.99 | 0.18 | 13,634,000 | 10,000 |
| 70.0 | 2,250,000 | 187.47 | 0.18 | 13,562,000 | 10,000 |
| 75.0 | 2,240,000 | 187.94 | 0.18 | 13,535,000 | 10,000 |
| 80.0 | 2,230,000 | 188.78 | 0.18 | 13,535,000 | 10,000 |
| 85.0 | 2,190,000 | 190.60 | 0.19 | 13,420,000 | 10,000 |
| 90.0 | 2,160,000 | 191.74 | 0.19 | 13,316,000 | 10,000 |
| 95.0 | 2,150,000 | 192.49 | 0.19 | 13,306,000 | 10,000 |
| 100.0 | 2,120,000 | 193.77 | 0.19 | 13,207,000 | 10,000 |
| 110.0 | 2,040,000 | 197.40 | 0.19 | 12,947,000 | 10,000 |
| 120.0 | 1,980,000 | 199.56 | 0.19 | 12,704,000 | 10,000 |
Table 28 San Acacio Veta C Inferred Resource
| Ag Cut-off (g/t) | Tonnes > Cut-off (tonnes) | Grade>Cut-off | Contained Metal | ||
|---|---|---|---|---|---|
| Ag (g/t) |
Au (g/t) |
Ag (ozs) |
Au (ozs) |
||
| 40.0 | 935,000 | 136.88 | 0.07 | 4,115,000 | 2,100 |
| 50.0 | 931,000 | 137.33 | 0.07 | 4,111,000 | 2,100 |
| 60.0 | 924,000 | 137.97 | 0.07 | 4,099,000 | 2,100 |
| 65.0 | 906,000 | 139.40 | 0.07 | 4,061,000 | 2,000 |
| 70.0 | 853,000 | 143.88 | 0.08 | 3,946,000 | 2,200 |
| 75.0 | 826,000 | 146.25 | 0.08 | 3,884,000 | 2,100 |
| 80.0 | 805,000 | 148.04 | 0.08 | 3,832,000 | 2,100 |
| 85.0 | 785,000 | 149.72 | 0.08 | 3,779,000 | 2,000 |
| 90.0 | 768,000 | 151.06 | 0.08 | 3,730,000 | 2,000 |
| 95.0 | 741,000 | 153.15 | 0.08 | 3,649,000 | 1,900 |
| 100.0 | 729,000 | 154.05 | 0.08 | 3,611,000 | 1,900 |
| 110.0 | 693,000 | 156.44 | 0.08 | 3,486,000 | 1,800 |
| 120.0 | 636,000 | 160.28 | 0.09 | 3,277,000 | 1,800 |
*2015 - The results can also be presented in terms of a Silver Equivalent. Using a gold price of $1270/ oz Au and silver price of $19.60 the silver equivalent value would be silver content plus 65 times the gold content. (Note: total contained AgEq values may not add exactly because of rounding). Metallurgical recoveries are not taken into account.