Resource

The Mocoa deposit contains an Inferred mineral resource estimated at 636 million tonnes at a grade of 0.33% copper and 0.03% molybdenum 4.6Blbs copper and 511Mlbs molybdenum. The resource exhibits reasonable prospects for eventual economic extraction using open-pit mining methods. The table below shows the sensitivity of the resource, listed at a variety of cut-off grades for comparison purposes, contained inside a resource limiting pit shell that has been generated based on a copper price of $3/lb and a molybdenum price of $10/lb. The base case resource assumes a cut-off grade of 0.25% copper equivalent.

SENSITIVITY OF INFERRED MINERAL RESOURCE AT MOCOA

Cut-off Mtonnes CuEq (%) Cu (%) Mo (%) Contained Metal
(CuEq%)         CuEq (Blbs) Cu (Blbs) Mo (Mlbs)
0.15 721 0.42 0.31 0.035 6.68 4.85 550
0.20 683 0.43 0.32 0.035 6.54 4.77 530
0.25 636 0.45 0.33 0.036 6.31 4.60 511
0.30 553 0.48 0.35 0.039 5.81 4.24 470
0.35 433 0.52 0.38 0.042 4.96 3.62 405
0.40 330 0.57 0.41 0.047 4.12 2.99 342
0.45 259 0.61 0.44 0.051 3.47 2.50 293
0.50 201 0.65 0.46 0.056 2.87 2.04 248
0.55 148 0.69 0.49 0.061 2.26 1.60 200
0.60 106 0.74 0.52 0.067 1.73 1.21 156