Discover, Develop, Operate

Mount Polley Mine

The Mount Polley mineral reserve estimate provided below is to January 1, 2014. It does not include mining that has taken place from January 1, 2014 to December 31, 2015. An updated estimate will be included in the new technical report currently in progress.

Probable Reserve Estimate - January 1, 2014

Grade Contained Metal
Tonnes
Ore
Copper
%
Gold
g/t
Silver
g/t
Copper
(lbs)
Gold
(oz)
Silver
(oz)
Stripping
Ratio
Springer 5,7910,000 0.308 0.261 0.655 393,223,000 485,900 1,219,500 2.52
Cariboo 17,755,000 0.233 0.321 0.290 91,047,000 183,200 165,500 2.43
WX 9,509,000 0.280 0.493 0.593 58761,000 150,700 181,300 7.91
Boundary OP 591,000 0.647 0.580 4.396 8,433,000 11,000 83,500 8.73
Boundary UG 237,000 1.538 0.946 6.772 8,038,000 7,200 51,600 n/a
Total Reserve 86,002,000 0.295 0.303 0.615 559,501,000 838,100 1,701,500 3.13

The Mount Polley mineral resource estimate was last updated January 1, 2013. The resource totals provided below do not include mining from January 1, 2013 through to December 31, 2015. An updated estimate will be included in the new technical report currently in progress.

Resource Estimate - January 1, 2013

Grade Contained Metal
Tonnes
Ore
Copper
Equiv %
Copper
%
Gold
g/t
Silver
g/t
Copper
(lbs)
Gold
(oz)
Silver
(oz)
Total Resource
Measured/Indicated 411,179,915 0.482 0.280 0.294 0.812 2,542,584,843 3,884,083 10,731,885
Inferred 39,723,713 0.347 0.185 0.240 0.590 161,657,082 305,990 753,594

The 2014 reserve estimate includes open pit mining of the Springer, Boundary, Cariboo/C2 and WX zones, and underground mining of the Boundary zone. The estimate reflects the twelve months of reserve depletion realized since the January 1, 2013 estimate. No calculation parameters were changed from 2013 for the 2014 reserve calculation. Pit designs and mine schedule have not been changed, and economic assumptions remain the same as those utilized in 2013. The parameters used in the 2014 reserve estimate are based on pit designs and the 2013 Mount Polley production schedule. The ultimate pit designs were based on US$2.75/lb copper, US$1,250.00/oz gold and a $0.95 US/CDN exchange rate. The economic mineral reserves at Mount Polley mine were calculated as follows:

  • A 3D block model was constructed using MineSight mining software.
  • The property was zoned based on geological zones; the blocks and drill holes then coded to reflect the zones.
  • The drill holes were composited to 5 m down-the-hole composites.
  • Mineralized zones were identified within the geological zones by kriging an indicator to identify the blocks that have a high probability of having greater than a 0.15% copper grade.
  • To calculate a well-defined high-grade underground resource in the Boundary and Wight zones, small blocks and a second indicator set at 0.5% copper grade were implemented.
  • The drill hole composites were then coded to match the indicator codes in the block model.
  • Outlier grades were capped, and variograms for Cu, Au, Ag and Fe in each zone were generated.
  • Grades were kriged into the block model using zone and indicator matching.
  • An oxide ratio number for each block was interpolated using an ID3 method, with zone and indicator matching - the oxide ratio number is used in the mill recovery formula.
  • The mill recoverable grades were calculated using formulas based on historic recoveries as well as on-site and off-site metallurgical test work.
  • A dollar value was calculated for each block based on the metals prices, US/CDN exchange rate, and mining, shipping and smelting costs.
  • Lerch-Grossman pit optimization software was used to identify economic pit shell based on the above economic parameters. Pit designs were created using the economic pit shells and design parameters from Golder Geotechnical Consultants of Vancouver.
Note:
  1. The >$40.00/tonne, >$80.00/tonne and >$100.00/tonne resources included in the Boundary/Zuke and Northeast zones, are calculated using a small block/secondary indicator modelling methodology to reflect that this portion of the resource would be mined with underground mining methods.
  2. Resource values are based on a 0.250% copper equivalent cut-off; the corresponding calculation being Equivalent Copper = Copper + Gold/1.510 + Silver/94.3, using the metal prices noted above.

The reserve and resource estimates were calculated and verified by Art Frye, Mine Operations Manager, MPMC; Ryan Brown, P.Eng., Senior Engineer, MPMC; and Greg Gillstrom, P.Eng., Senior Geological Engineer, Imperial. Mr. Gillstrom is designated as the Qualified Person as defined by National Instrument 43-101 for the estimates.

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