Reserves

Mexico Reserves (2020)

Securities and Exchange Commission (SEC) Proven and Probable (P&P) Industry Guide 7 Reserve Estimates

As of December 31, 2020, our estimate of Proven and Probable (P&P) reserves was: 

 Description Tonnes Au
g/t
Ag
g/t
AuEq
g/t
Au oz Ag oz AuEq oz Cu
%
Pb
%
Zn
%
Don David Gold Mine                    
Arista Mine                    
Proven 1,775,600 2.22 116 3.68 126,700 6,648,700 205,400 0.4 1.6 4.5
Probable 490,600 1.88 138 3.61 29,600 2,177,100 55,400 0.4 1.5 3.9
Arista Mine Total 2,266,200 2.16 121 3.58 156,300 8,825,800 260,800 0.4 1.6 4.4
Mirador Mine                    
Proven 51,900 0.76 325 4.61 1,300 543,400 7,700      
Probable 10,400 0.85 514 6.90 300 172,500 2,300      
Mirador Mine Total 62,300 0.77 357 5.00 1,600 715,900 10,000      
Don David Gold Mine Total 2,328,500 2.11 127 3.62 157,900 9,541,700 270,800      

Notes to the 2020 P&P reserves: 

  1. Metal prices used for P&P reserves were $1,477 per ounce of gold, $17.47 per ounce of silver, $2.83 per pound of copper, $0.92 per pound of lead and $1.17 per pound of zinc.  These prices reflect the three-year trailing average prices for gold, silver, copper, lead and zinc. 
  2. Precious metal AuEq is 84.54:1 using gold and silver only to calculate gold equivalencies. 
  3. A breakeven Net Smelter Return (“NSR”) cutoff grade of $77 per tonne was used for estimations of P&P reserves at the Arista Mine.  The term “cutoff grade” means the lowest NSR value considered economic to process. 
  4. No appreciable amounts of base metals are present in the veins identified to-date at the Mirador Mine at the Alta Gracia project.  A breakeven cutoff grade of 2.33 g/t AuEq was used for proven and probable reserves at the Mirador Mine using gold and silver only to calculate gold equivalencies. 
  5. Mining, processing, energy, administrative and smelting/refining costs were based on 2020 actual costs for the Don David Gold Mine. 
  6. Arista Mine metallurgical recovery assumptions used were 76% for gold, 92% for silver, 80% for copper, 79% for lead and 80% for zinc.  Mirador Mine metallurgical recovery assumptions used were 85% for gold and 72% for silver.  These recoveries reflect 2020 actual average recoveries for the Aguila and Alta Gracia projects. 
  7. P&P reserves are diluted and factored for expected mining recovery. 
  8. Minimum mining width for P&P reserves is 1.5 meters for the Arista and Mirador underground mines. 
  9. Figures in tables are rounded to reflect estimate precision and small differences generated by rounding are not material to estimates. 
     

Report on the Estimate of Mineral Resources and Mineral Reserves

Report on the Reserve Estimate for the Don David Gold Mine as at December 31, 2020
Report on the Reserve Estimate for the Don David Gold Mine as at December 31, 2019