Updated Ore Reserves - Anglo Asian Mining PLC Ore Reser… · · 2018-03-10Heap Leaching Process of the Oxide Mineralisation by Benches .... 20 Table 5.5 Proved Ore Reserves Estimation

CAE Mining International Limited | 8585 Cote-de-Liesse | Saint-Laurent | Quebec | H4T 1G8 | Canada

May 2012

Updated Ore Reserves Gedabek Mineral Deposit, Republic of Azerbaijan

Azerbaijan International Mining Company Limited

Prepared by CAE Mining International Limited

Updated Ore Reserves | Gedabek Mineral Deposit __________________________________________________________________________________________

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Executive Summary

CAE Mining International Limited was requested by the Azerbaijan International Mining Company Limited to update the proved and probable ore reserves estimation of the Gedabek Mineral Deposit located in the Republic of Azerbaijan. In addition, that the update was based on the most recent estimation of the measured and indicated mineral resources done by CAE Mining International Limited (2012) in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The Joint Ore Reserves Committee, 2004).

The updated ultimate optimal open pit ore reserves were estimated by applying the Lerchs-Grossman open pit optimisation algorithm and taking into consideration the modifying factors. An extensive sensitivity analysis of some of the modifying factors was carried out during the open pit optimisation process. The metal prices and overall open pit slope designs were the factors considered in the sensitivity analysis.

Several medium and long term mineral processing options were assessed during the estimation of the ore reserves and additionally to the current heap leaching process of the Gedabek Mining and Processing Operation. The aim of assessing these mineral processing options consisted in:

Mining, processing and marketing the whole available mineral resources

Increasing the gold, copper and silver metallurgical recovery and production

Increasing the life of the mining and processing operation

Maximising the net present value of the company

The mineral processing options and grade constrains considered for processing the oxide and sulphide mineralisation of the expected proved and probable ore reserves were:

Heap leaching process of the oxide mineralisation 0.3 ≤ Au g/t < 1.0

Agitation leaching process of the oxide mineralisation 1.0 ≤ Au g/t < ∞

Agitation leaching process of the sulphide mineralisation 1.0 ≤ Au g/t < ∞

Flotation process of the sulphide mineralisation 0.3 ≤ Au g/t < 1.0

The estimation of the ore reserves was based on a cut-off grade of 0.3 g/t of gold and constrained by the ultimate optimal open pit design, original surface topography and the open pit surface topography dated on December 30th, 2011.


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The updated proved and probable ore reserves estimation of the Gedabek Mineral Deposit is summarised in the following table. In addition, the table describes the estimated products and recovered products by combining heap leaching, agitation leaching and flotation processes with the oxide and sulphide mineralisation:

Ore Reserves Estimation by Mineral Processing and Mineralisation Types

Process Tonnage

Ore Au Cu Ag Au Cu Ag Au Cu Ag

t g/t % g/t Oz t Oz Oz t Oz

HL-OM 3,874,666 0.564 0.163 7.147 70,303 6,319 890,294 49,212 947 178,059

AL-OM 1,617,471 2.522 0.269 15.093 131,143 4,354 784,862 111,472 870 470,917

AL-SM 4,054,531 2.073 0.496 14.294 270,216 20,119 1,863,257 186,449 4,023 279,489

F-SM 6,040,284 0.594 0.225 5.527 115,437 13,597 1,073,393 63,490 2,719 161,009

Total 15,586,952 1.172 0.285 9.203 587,099 44,389 4,611,806 410,623 8,560 1,089,474

Process Tonnage



HL-OM 2,656,324 0.584 0.205 6.463 49,900 5,442 551,953 34,930 816 110,391

AL-OM 1,468,807 1.894 0.508 16.915 89,422 7,467 798,766 76,009 1,493 479,260

AL-SM 198,372 1.519 0.556 18.130 9,686 1,103 115,629 6,683 220 17,344

F-SM 402,425 0.613 0.268 7.526 7,931 1,077 97,377 4,362 215 14,606

Total 4,725,928 1.033 0.319 10.292 156,939 15,091 1,563,725 121,984 2,745 621,601

Process Tonnage



HL-OM 6,530,990 0.572 0.180 6.869 120,203 11,761 1,442,247 84,142 1,764 288,449

AL-OM 3,086,278 2.223 0.383 15.960 220,566 11,821 1,583,628 187,481 2,363 950,177

AL-SM 4,252,904 2.047 0.499 14.473 279,901 21,222 1,978,886 193,132 4,244 296,833

F-SM 6,442,709 0.596 0.228 5.652 123,368 14,675 1,170,770 67,853 2,935 175,615

Total 20,312,879 1.139 0.293 9.456 744,038 59,479 6,175,531 532,607 11,305 1,711,075

OM - Oxide Mineralisation SM - Sulphide Mineralisation

Grades Products Recovered Products

Proved Ore Reserves

HL - Heap Leaching Process AL - Agitation Leaching Process F - Flotation Process

Proved and Probable Ore Reserves


Probable Ore Reserves



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Contents

Section 1 | Introduction ..... 6

Section 2 | Mineral Resources ..... 7

Section 3 | Modifying Factors ..... 8

3.1 Mining Factors ..... 8 3.2 Processing Factors ..... 8 3.3 Marketing Factors ..... 9 3.4 Economic Factors ..... 10

Section 4 | Open Pit Optimisation ..... 12

Section 5 | Ore Reserves ..... 14

5.1 Ore Reserves Classification Criteria ..... 14 5.2 Proved Ore Reserves ..... 16 5.3 Probable Ore Reserves ..... 16 5.4 Proved and Probable Ore Reserves ..... 16

Section 6 | Recommendations ..... 36

Section 7 | References ..... 37

Section 8 | Competence and Responsibility ..... 38


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List of Tables Table 2.1 Mineral Resources Estimation by Mineralisation Types based on a Cut-Off Grade of 0.3 [g/t] of Gold .... 7 Table 3.1 Modifying Mining, Processing, Marketing and Economic Factors .... 11 Table 5.1 Ore Reserves Estimation by Mineral Processing and Mineralisation Types .... 15 Table 5.2 Proved Ore Reserves Estimation by Products and Benches .... 18 Table 5.3 Proved Ore Reserves Estimation by Waste, Ore, Strip Ratio and Benches .... 19 Table 5.4 Proved Ore Reserves Estimation for the Heap Leaching Process of the Oxide Mineralisation by Benches .... 20 Table 5.5 Proved Ore Reserves Estimation for the Agitation Leaching Process of the Oxide Mineralisation by Benches .... 21 Table 5.6 Proved Ore Reserves Estimation for the Agitation Leaching Process of the Sulphide Mineralisation by Benches .... 22 Table 5.7 Proved Ore Reserves Estimation for the Flotation Process of the Sulphide Mineralisation by Benches .... 23 Table 5.8 Probable Ore Reserves Estimation by Products and Benches .... 24 Table 5.9 Probable Ore Reserves Estimation by Waste, Ore, Strip Ratio and Benches .... 25


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List of Tables Continuation Table 5.10 Probable Ore Reserves Estimation for the Heap Leaching Process of the Oxide Mineralisation by Benches .... 26 Table 5.11 Probable Ore Reserves Estimation for the Agitation Leaching Process of the Oxide Mineralisation by Benches .... 27 Table 5.12 Probable Ore Reserves Estimation for the Agitation Leaching Process of the Sulphide Mineralisation by Benches .... 28 Table 5.13 Probable Ore Reserves Estimation for the Flotation Process of the Sulphide Mineralisation by Benches .... 29 Table 5.14 Proved and Probable Ore Reserves Estimation by Products and Benches .... 30 Table 5.15 Proved and Probable Ore Reserves Estimation by Waste, Ore, Strip Ratio and Benches .... 31 Table 5.16 Proved and Probable Ore Reserves Estimation for the Heap Leaching Process of the Oxide Mineralisation by Benches .... 32 Table 5.17 Proved and Probable Ore Reserves Estimation for the Agitation Leaching Process of the Oxide Mineralisation by Benches .... 33 Table 5.18 Proved and Probable Ore Reserves Estimation for the Agitation Leaching Process of the Sulphide Mineralisation by Benches .... 34 Table 5.19 Proved and Probable Ore Reserves Estimation for the Flotation Process of the Sulphide Mineralisation by Benches .... 35


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Section 1 | Introduction

CAE Mining International Limited was requested by the Azerbaijan International Mining Company Limited to update the proved and probable ore reserves estimation of the Gedabek Mineral Deposit located in the Republic of Azerbaijan.

In addition, that the update was based on the most recent estimation of the measured and indicated mineral resources done by CAE Mining International Limited (2012) in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The Joint Ore Reserves Committee, 2004).

The objective of this document consists in reporting the up to date estimation of the proved and probable ore reserves of the Gedabek Mineral Deposit, which were based on the information of the recent measured and indicated mineral resources estimation (CAE Mining International Limited, 2012). These mineral resources were estimated by taking into consideration the previous (2006) and recent (2010 and 2011) exploration drilling campaigns done in the Gedabek Mineral Deposit.

Additionally, the estimation of the ore reserves considered the information regarding to the modifying mining, processing, marketing and economic factors, which were provided by the Chief Financial Officer and the Technical Director of the Azerbaijan International Mining Company Limited.

This document is structured in an ordered sequence of sections similar to those stages that were carried out during the estimation process of the ore reserves, which are summarised as follow:

The mineral resources section summarises the measured and indicated mineral resources of the oxide and sulphide mineralisation of the Gedabek Mineral Deposit and considered in the estimation of the proved and probable ore reserves estimation process

The modifying factors section describes the mining, processing, marketing and economic parameters considered in converting the mineral resources to ore reserves

The open pit optimisation section explains the algorithm applied in obtaining the ultimate optimal open pit design and the sensitivity analysis carried out of the metal prices and the overall open pit slopes designs

The ore reserves section reports the proved and probable ore reserves by benches of the combined heap leaching, agitation leaching and flotation processes with the oxide and sulphide mineralisation


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Section 2 | Mineral Resources

The updated ore reserves of the Gedabek Mineral Deposit were estimated by taking into consideration the recently published mineral resources, which were also estimated by CAE Mining International Limited (2012). The classification of these mineral resources were in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The Joint Ore Reserves Committee, 2004).

This section consists in summarising the classification of the mineral resources of the gold, copper and silver mineralisation within the oxide, sulphide and combined zones of the deposit. These mineral resources were constrained by both the original surface topography and the open pit surface topography dated on December 30th, 2011.

The estimated and classified measured and indicated mineral resources by mineralisation types and based on a cut-off grade of 0.3 g/t of gold are shown in the Table 2.1.

Table 2.1 - Mineral Resources Estimation by Mineralisation Types based on a Cut-Off Grade of 0.3 [g/t] of Gold

Classification Tonnage

Au Cu Ag Au Cu Ag

t g/t % g/t Oz t Oz

Measured 6,561,562 1.051 0.184 8.957 221,718 12,073 1,889,561

Indicated 6,877,499 0.851 0.241 8.139 188,170 16,575 1,799,669

Measured and Indicated 13,439,060 0.949 0.213 8.538 409,888 28,648 3,689,230


Au Cu Ag Au Cu Ag

t g/t % g/t Oz t Oz

Measured 15,788,000 1.019 0.285 7.955 517,240 44,996 4,037,926

Indicated 7,884,516 0.502 0.103 3.477 127,254 8,121 881,395

Measured and Indicated 23,672,516 0.847 0.224 6.464 644,494 53,117 4,919,322


Au Cu Ag Au Cu Ag

t g/t % g/t Oz t Oz

Measured 22,349,562 1.028 0.255 8.249 738,958 57,069 5,927,487

Indicated 14,762,015 0.665 0.167 5.649 315,424 24,696 2,681,064

Measured and Indicated 37,111,577 0.884 0.220 7.215 1,054,382 81,765 8,608,551

Oxide Mineralisation

Mineralisation

Products

Grades Products

Grades Products

Sulphide Mineralisation

Grades


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Section 3 | Modifying Factors

This section describes the modifying factors that were considered in the estimation process for converting the measured and indicated mineral resources in proved and probable ore reserves (The Joint Ore Reserves Committee, 2004). These factors were related to the mining, processing, marketing and economic parameters, which were provided by both the Chief Financial Officer and the Technical Director of the Azerbaijan International Mining Company Limited.

3.1 Mining Factors

The mining factors applied in the estimation of the ore reserves and specifically for the open pit optimisation process were the overall open pit slope angles and bench height. These parameters were previously determined by Knight Piesold Property Limited (2007) during the geotechnical assessment done in the Pre-Feasibility study of the Gedabek Mineral Deposit. Although, a detailed explanation about these and other geotechnical parameters can be obtained directly from the report of the Pre-Feasibility Study carried out by Knight Piesold Property Limited (2007).

In summary, an overall slope angles between 45° and 56° were considered in the open pit optimisation process for the andesitic and dacitic lavas and volcaniclastic tuffs rocks. However, in the case of the dacitic quartz porphyry rock, the overall slope angles used were in the range of 45° and 50°. Taking into account this information, the open pit slopes will be relatively strong in the andesitic and dacitic lavas and volcaniclastic tuffs rocks that the overlying weaker dacitic quartz porphyry rock. The open pit slope angles can be modified during the mining process and as additional geotechnical information will become available but the steeper dacitic quartz porphyry rock slopes may not be changed (Knight Piesold Property Limited, 2007).

The other mining factor considered in the open pit optimisation process was the bench height, which was defined of 10 meters and subsequently the most recent mineral resources block model was re-blocked to this specific height and specifically during the optimisation process.

3.2 Processing Factors

Several medium and long term mineral processing options were assessed during the estimation of the ore reserves and additionally to the current heap leaching process of the Gedabek Mining and Processing Operation. These options were identified, defined and researched in 2011 by the Technical Director of the Azerbaijan International Mining Company Limited in 2011.


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The main objectives of taking into account the mineral processing options in the estimation of the ore reserves consisted in:

Mining, processing and marketing the whole available mineral resources

Increasing the gold, copper and silver metallurgical recovery and production

Increasing the life of the mining and processing operation

Maximising the net present value of the company

The mineral processing options and grade constrains considered for processing the oxide and sulphide mineralisation of the expected proved and probable ore reserves were:

Heap leaching process of the oxide mineralisation 0.3 ≤ Au g/t < 1.0

Agitation leaching process of the oxide mineralisation 1.0 ≤ Au g/t < ∞

Agitation leaching process of the sulphide mineralisation 1.0 ≤ Au g/t < ∞

Flotation process of the sulphide mineralisation 0.3 ≤ Au g/t < 1.0

The most important processing factors considered in the open pit optimisation process consisted in the gold, copper and silver recoveries of the combined heap leaching, agitation leaching and flotation processes with the oxide and sulphide mineralisation.

The information of the mineral processing recoveries was supported by the metallurgical performance of the heap leaching process of the oxide mineralisation during the last three years of production. In addition, by the most recent metallurgical assessment carried out of the sulphide mineralisation of the Gedabek Mineral Deposit (Van Der Merwe, 2011).

3.3 Marketing Factors

The single marketing factor considered in the open pit optimisation process was the selling costs of the dore, which includes transport, insurance, security, treatment and refining. This source of information was provided by the Chief Financial Officer of the Azerbaijan International Mining Company Limited.


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3.3 Economic Factors

The economic factors involved in the ore reserves estimation process were the metal prices and operating costs. In the case of the metal prices, short, medium and long term corporate strategies were considered for the gold, copper and silver metal prices. These corporate strategies provided by the Chief Financial Officer of the Azerbaijan International Mining Company Limited are described as follow:

Gold metal prices Short term (2012) 1,600 $USD$/Oz Medium term (2013 - 2014) 1,500 $USD$/Oz Long term (2015 and more) 1,200 $USD$/Oz

Copper metal prices Short, medium and long term (2012 and more) 7,000 $USD$/t

Silver metal prices Short and medium term (2012 - 2014) 25 $USD$/Oz Long term (2015 and more) 20 $USD$/Oz

Another essential source of information required for the estimation of the ore reserves were the mining, heap leaching, agitation leaching and flotation operating costs.

The Table 3.1 summarises the main modifying mining, processing, marketing and economic factors used in converting the measured and indicated mineral resources in proved and probable ore reserves.


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Table 3.1 - Modifying Mining, Processing, Marketing and Economic Factors

Units

Short Medium Long

Metal Prices

Au USD$/Oz 1,600 1,500 1,200

Cu USD$/t 7,000 7,000 7,000

Ag USD$/Oz 25 25 20

Selling Costs

Au USD$/Oz 9 9 9

Operating Costs

Mining USD$/t 1.77 1.77 1.77

Heap Leaching Process USD$/t 13.94 13.94 13.94

Agitation Leaching Process USD$/t 12.73 12.73 12.73

Flotation Process USD$/t 12.88 12.88 12.88

Mineral Processing Recoveries

Heap Leaching Process - Oxide Mineralisation

Au % 70 70 70

Cu % 15 15 15

Ag % 20 20 20

Agitation Leaching Process - Oxide Mineralisation

Au % 85 85 85

Cu % 20 20 20

Ag % 60 60 60

Agitation Leaching Process - Sulphide Mineralisation

Au % 69 69 69

Cu % 20 20 20

Ag % 15 15 15

Flotation Process - Sulphide Mineralisation

Au % 69 69 69

Cu % 20 20 20

Ag % 15 15 15

Overall Open Pit Slope Design

Andesitic and Dacitic Lavas and Volcaniclastic Tuffs ° 45 - 56 45 - 56 45 - 56

Dacitic Quartz Porphyry ° 45 - 50 45 - 50 45 - 50

TermParameters


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Section 4 | Open Pit Optimisation

The updated ore reserves of the Gedabek Mineral Deposit were estimated by applying the Lerchs-Grossman open pit optimisation algorithm and taking into account the modifying mining, processing, marketing and economic factors summarised in Table 3.1.

In addition, the most recent mineral resources block model was considered in the estimation process, which was re-blocked to 10 meter bench height and according to the geotechnical assessment done by Knight Piesold Property Limited (2007).

The combined mineral processing options of the oxide and sulphide mineralisation described in the previous Section 3 | Modifying Factors were also considered in this optimisation.

An extensive sensitivity analysis of the ore reserves was carried out by assessing mainly the economic impact of considering the short, medium and long term corporate strategies of the gold and silver metal prices. The sensitivity analysis of the optimisation scenarios were:

Optimisation scenario 1 Gold metal price 1,600 $USD$/Oz Silver metal price 25 $USD$/Oz




optimisation scenario 5 Gold metal price 1,500 $USD$/Oz Silver metal price 20 $USD$/Oz



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The results of each optimisation scenario were analysed and assessed in detail and the conclusion was that there is not significant differences in quantity, quality and expected economics among the optimisation scenarios. However, the optimisation scenario 1 was selected in common agreement with the Technical Director of the Azerbaijan International Mining Company Limited.

The updated ore reserves of the Gedabek Mineral Deposit was estimated by ultimate optimal open pit design of the optimisation scenario 1 and constrained with the original surface topography and the open pit surface topography dated on December 30th, 2011.


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Section 5 | Ore Reserves

The updated ore reserves of the Gedabek Mineral Deposit are described in this section and they were estimated and classified in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The Joint Ore Reserves Committee, 2004). These ore reserves were estimated by taking into consideration the modifying factors and the up to date mineral resources, which were also estimated by CAE Mining International Limited (2012).

The estimation of the ultimate optimal open pit ore reserves was done by applying the Lerch-Grossman open pit optimisation algorithm. In addition, by selecting one of the economic and technical corporate scenarios assessed during the sensitivity analysis carried on and described in the previous Section 4 | Open Pit Optimisation Process. The selection of the corporate scenario was done in common agreement with the Technical Director of the Azerbaijan International Mining Company Limited.

This section is reporting the updated and classified ore reserves by mineral processing and mineralisation types, which were constrained by the selected ultimate optimal open pit design, original surface topography and the open pit surface topography dated on December 30th, 2011.

5.1 Ore Reserves Classification Criteria

The updated ore reserves were estimated and classified in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The Joint Ore Reserves Committee, 2004). The classification was done by taking into consideration the modifying factors of each mineral processing and mineralisation types described in the previous Section 3 | Modifying Factors. The proved and probable ore reserve were estimated and classified as the economically mineable part of the measured and indicated mineral resources respectively. In addition, by taking into consideration the modifying mining, processing, marketing and economic factors.

The criteria applied in the classification of the updated ore reserves were also based on the sufficient experience and knowledge of the Competent Person relevant to the style of mineralisation and type of the Gedabek Mineral Deposit.

The Table 5.1 summarises the updated proved, probable and combined ore reserves estimation by mineral processing and mineralisation types. These ore reserves were estimated and classified by taking into account the corporate strategies that the Azerbaijan International Mining Company Limited is pursuing in the short, medium and long term. These corporate strategies are focussed in adding economic value to the Gedabek Mining and Processing Operation.


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Table 5.1 - Ore Reserves Estimation by Mineral Processing and Mineralisation Types

Process Tonnage



HL-OM 3,874,666 0.564 0.163 7.147 70,303 6,319 890,294 49,212 947 178,059

AL-OM 1,617,471 2.522 0.269 15.093 131,143 4,354 784,862 111,472 870 470,917

AL-SM 4,054,531 2.073 0.496 14.294 270,216 20,119 1,863,257 186,449 4,023 279,489

F-SM 6,040,284 0.594 0.225 5.527 115,437 13,597 1,073,393 63,490 2,719 161,009

Total 15,586,952 1.172 0.285 9.203 587,099 44,389 4,611,806 410,623 8,560 1,089,474

Process Tonnage



HL-OM 2,656,324 0.584 0.205 6.463 49,900 5,442 551,953 34,930 816 110,391

AL-OM 1,468,807 1.894 0.508 16.915 89,422 7,467 798,766 76,009 1,493 479,260

AL-SM 198,372 1.519 0.556 18.130 9,686 1,103 115,629 6,683 220 17,344

F-SM 402,425 0.613 0.268 7.526 7,931 1,077 97,377 4,362 215 14,606

Total 4,725,928 1.033 0.319 10.292 156,939 15,091 1,563,725 121,984 2,745 621,601

Process Tonnage



HL-OM 6,530,990 0.572 0.180 6.869 120,203 11,761 1,442,247 84,142 1,764 288,449

AL-OM 3,086,278 2.223 0.383 15.960 220,566 11,821 1,583,628 187,481 2,363 950,177

AL-SM 4,252,904 2.047 0.499 14.473 279,901 21,222 1,978,886 193,132 4,244 296,833

F-SM 6,442,709 0.596 0.228 5.652 123,368 14,675 1,170,770 67,853 2,935 175,615

Total 20,312,879 1.139 0.293 9.456 744,038 59,479 6,175,531 532,607 11,305 1,711,075

OM - Oxide Mineralisation SM - Sulphide Mineralisation


Proved Ore Reserves

HL - Heap Leaching Process AL - Agitation Leaching Process F - Flotation Process






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5.2 Proved Ore Reserves

The updated proved ore reserves estimation by products and benches is shown in Table 5.2. This table is describing the expected tonnage, grades, products and recovered products of each bench by mining (oxide and sulphide mineralisation), processing (heap leaching, agitation leaching and flotation) and marketing the proved ore reserves.

The expected quantity (tonnage) and quality (grades) of the waste and ore to be mined and its associated strip ratio by benches of the proved ore reserves are described in Table 5.3

The Tables 5.4, 5.5, 5.6 and 5.7 are shown respectively and by benches the proved ore reserves estimation of the heap leaching process of the oxide mineralisation, agitation leaching process of the oxide mineralisation, agitation leaching process of the sulphide mineralisation and flotation process of the sulphide mineralisation.

5.3 Probable Ore Reserves




5.4 Proved and Probable Ore Reserves



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Table 5.2 - Proved Ore Reserves Estimation by Products and Benches

Benches Tonnage



1790-1800

1780-1790

1770-1780

1760-1770

1750-1760

1740-1750

1730-1740

1720-1730

1710-1720

1700-1710

1690-1700 9,398 0.381 0.013 3.078 115 1 930 81 186

1680-1690 70,672 0.497 0.027 3.686 1,130 19 8,375 804 3 2,035

1670-1680 301,364 0.667 0.130 7.463 6,462 392 72,309 4,786 62 19,802

1660-1670 1,034,136 0.967 0.245 9.616 32,142 2,538 319,706 24,325 449 103,854

1650-1660 2,462,612 1.332 0.262 11.614 105,425 6,457 919,568 78,059 1,219 272,248

1640-1650 2,969,229 1.387 0.315 9.780 132,393 9,365 933,586 95,447 1,803 234,566

1630-1640 2,523,402 1.233 0.300 10.160 100,001 7,560 824,304 70,230 1,463 190,047

1620-1630 1,950,935 1.245 0.333 9.565 78,115 6,493 599,972 52,790 1,267 118,121

1610-1620 1,344,638 1.118 0.399 8.320 48,337 5,368 359,681 31,766 1,070 59,104

1600-1610 940,614 0.830 0.270 6.389 25,088 2,536 193,203 15,610 505 30,605

1590-1600 495,472 0.755 0.112 3.935 12,028 555 62,677 7,404 110 9,530

1580-1590 396,916 1.009 0.115 4.231 12,870 457 53,988 8,228 90 8,438

1570-1580 278,472 0.872 0.158 5.823 7,803 441 52,137 4,907 84 8,416

1560-1570 216,468 0.699 0.103 4.109 4,863 224 28,596 3,031 42 4,699

1550-1560 226,650 1.172 0.106 4.946 8,538 240 36,045 5,618 46 5,615

1540-1550 166,842 0.979 0.303 10.339 5,251 506 55,460 3,319 101 8,425

1530-1540 140,605 1.080 0.595 13.858 4,884 837 62,644 3,181 167 9,477

1520-1530 54,493 0.891 0.690 15.306 1,560 376 26,817 984 75 4,035

1510-1520 4,037 0.718 0.586 13.949 93 24 1,810 55 5 272

1500-1510

Total 15,586,952 1.172 0.285 9.203 587,099 44,389 4,611,806 410,623 8,560 1,089,474

Proved Ore Reserves



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Table 5.3 - Proved Ore Reserves Estimation by Waste, Ore, Strip Ratio and Benches

Benches Tonnage Tonnage Tonnage Strip Ratio

Waste Au Cu Ag Ore Au Cu Ag Total

t g/t % g/t t g/t % g/t t

1790-1800

1780-1790

1770-1780 41,618 0.008 0.015 0.250 41,618

1760-1770 273,115 0.009 0.008 0.250 273,115

1750-1760 276,219 0.009 0.008 0.748 276,219

1740-1750 254,823 0.012 0.010 0.361 254,823

1730-1740 365,999 0.016 0.012 0.298 365,999

1720-1730 438,242 0.015 0.014 0.267 438,242

1710-1720 518,037 0.013 0.008 0.268 518,037

1700-1710 787,628 0.019 0.010 0.377 787,628

1690-1700 1,061,330 0.035 0.015 0.730 9,398 0.381 0.013 3.078 1,070,728 112.938

1680-1690 1,468,404 0.060 0.017 1.708 70,672 0.497 0.027 3.686 1,539,076 20.778

1670-1680 1,665,416 0.081 0.025 2.314 301,364 0.667 0.130 7.463 1,966,781 5.526

1660-1670 1,783,313 0.105 0.032 2.628 1,034,136 0.967 0.245 9.616 2,817,449 1.724

1650-1660 1,732,835 0.118 0.041 2.737 2,462,612 1.332 0.262 11.614 4,195,446 0.704

1640-1650 1,424,850 0.138 0.080 3.050 2,969,229 1.387 0.315 9.780 4,394,079 0.480

1630-1640 1,091,651 0.152 0.112 2.448 2,523,402 1.233 0.300 10.160 3,615,052 0.433

1620-1630 780,753 0.156 0.153 1.785 1,950,935 1.245 0.333 9.565 2,731,688 0.400

1610-1620 559,358 0.148 0.237 1.592 1,344,638 1.118 0.399 8.320 1,903,997 0.416

1600-1610 578,086 0.133 0.117 1.187 940,614 0.830 0.270 6.389 1,518,700 0.615

1590-1600 626,117 0.140 0.062 1.315 495,472 0.755 0.112 3.935 1,121,589 1.264

1580-1590 412,351 0.129 0.046 1.381 396,916 1.009 0.115 4.231 809,267 1.039

1570-1580 312,745 0.123 0.052 1.104 278,472 0.872 0.158 5.823 591,217 1.123

1560-1570 238,154 0.157 0.084 1.398 216,468 0.699 0.103 4.109 454,622 1.100

1550-1560 172,892 0.158 0.077 1.887 226,650 1.172 0.106 4.946 399,542 0.763

1540-1550 113,022 0.149 0.065 1.967 166,842 0.979 0.303 10.339 279,864 0.677

1530-1540 26,237 0.161 0.133 2.765 140,605 1.080 0.595 13.858 166,842 0.187

1520-1530 12,782 0.199 0.176 1.668 54,493 0.891 0.690 15.306 67,275 0.235

1510-1520 4,037 0.164 0.222 1.643 4,037 0.718 0.586 13.949 8,073 1.000

1500-1510

Total 17,020,015 0.094 0.054 1.781 15,586,952 1.172 0.285 9.203 32,606,967 1.092

Proved Ore Reserves

GradesGrades


May 2012 20 | P a g e

Table 5.4 - Proved Ore Reserves Estimation for the Heap Leaching Process of the Oxide Mineralisation by Benches

Benches Tonnage

Au Cu Ag Au Cu Ag Au Cu Ag


1790-1800

1780-1790

1770-1780

1760-1770

1750-1760

1740-1750

1730-1740

1720-1730

1710-1720

1700-1710

1690-1700 9,398 0.381 0.013 3.078 115 1 930 81 186

1680-1690 69,119 0.469 0.027 3.363 1,042 19 7,473 730 3 1,495

1670-1680 245,777 0.525 0.130 6.929 4,149 320 54,752 2,904 48 10,950

1660-1670 544,582 0.530 0.217 7.023 9,280 1,182 122,964 6,496 177 24,593

1650-1660 948,003 0.563 0.152 7.694 17,160 1,441 234,505 12,012 216 46,901

1640-1650 917,614 0.583 0.152 7.052 17,200 1,395 208,048 12,040 209 41,610

1630-1640 603,783 0.592 0.163 7.524 11,492 984 146,056 8,044 148 29,211

1620-1630 271,339 0.639 0.229 7.158 5,574 621 62,445 3,902 93 12,489

1610-1620 66,539 0.492 0.117 6.421 1,053 78 13,736 737 12 2,747

1600-1610 53,258 0.500 0.092 5.628 856 49 9,637 599 7 1,927

1590-1600 15,128 0.378 0.078 5.274 184 12 2,565 129 2 513

1580-1590 19,799 0.569 0.161 8.568 362 32 5,454 254 5 1,091

1570-1580 32,164 0.641 0.216 7.727 663 69 7,990 464 10 1,598

1560-1570 31,809 0.548 0.175 5.470 560 56 5,594 392 8 1,119

1550-1560 30,881 0.425 0.128 4.189 422 40 4,159 295 6 832

1540-1550 8,746 0.386 0.123 7.528 109 11 2,117 76 2 423

1530-1540 6,055 0.384 0.132 8.271 75 8 1,610 52 1 322

1520-1530 673 0.404 0.411 11.894 9 3 257 6 51

1510-1520

1500-1510

Total 3,874,666 0.564 0.163 7.147 70,303 6,319 890,294 49,212 947 178,059

Grades Products

Proved Ore Reserves - Heap Leaching Process - Oxide Mineralisation

Recovered Products


May 2012 21 | P a g e

Table 5.5 - Proved Ore Reserves Estimation for the Agitation Leaching Process of the Oxide Mineralisation by Benches

Benches Tonnage



1790-1800

1780-1790

1770-1780

1760-1770

1750-1760

1740-1750

1730-1740

1720-1730

1710-1720

1700-1710

1690-1700

1680-1690 1,553 1.762 0.048 18.053 88 1 901 75 541

1670-1680 41,459 1.496 0.144 10.367 1,994 60 13,819 1,695 12 8,291

1660-1670 248,710 1.959 0.273 13.826 15,665 679 110,555 13,315 136 66,333

1650-1660 484,619 2.719 0.261 17.484 42,364 1,265 272,416 36,010 253 163,450

1640-1650 399,496 3.194 0.240 14.555 41,024 959 186,946 34,870 192 112,168

1630-1640 306,528 2.090 0.258 13.326 20,597 791 131,329 17,508 158 78,798

1620-1630 108,957 2.014 0.391 15.861 7,055 426 55,562 5,997 85 33,337

1610-1620 18,164 3.491 0.801 16.992 2,039 145 9,923 1,733 29 5,954

1600-1610 6,053 1.297 0.379 13.052 252 23 2,540 215 5 1,524

1590-1600

1580-1590 294 1.112 0.285 15.686 11 1 148 9 89

1570-1580 799 1.026 0.287 16.918 26 2 434 22 261

1560-1570 839 1.042 0.259 10.691 28 2 288 24 173

1550-1560

1540-1550

1530-1540

1520-1530

1510-1520

1500-1510

Total 1,617,471 2.522 0.269 15.093 131,143 4,354 784,862 111,472 870 470,917

Proved Ore Reserves - Agitation Leaching Process - Oxide Mineralisation



May 2012 22 | P a g e

Table 5.6 - Proved Ore Reserves Estimation for the Agitation Leaching Process of the Sulphide Mineralisation by Benches

Benches Tonnage



1790-1800

1780-1790

1770-1780

1760-1770

1750-1760

1740-1750

1730-1740

1720-1730

1710-1720

1700-1710

1690-1700

1680-1690

1670-1680 2,018 1.183 0.098 9.060 77 2 588 53 88

1660-1670 67,275 1.834 0.463 17.143 3,967 311 37,079 2,737 62 5,562

1650-1660 448,037 2.376 0.536 18.801 34,226 2,401 270,823 23,616 480 40,623

1640-1650 696,784 2.469 0.610 15.732 55,311 4,250 352,430 38,164 850 52,865

1630-1640 773,260 2.105 0.443 15.349 52,332 3,426 381,590 36,109 685 57,238

1620-1630 759,009 2.012 0.449 13.897 49,098 3,408 339,124 33,878 682 50,869

1610-1620 558,458 1.755 0.631 12.575 31,511 3,524 225,782 21,742 705 33,867

1600-1610 211,244 1.691 0.678 14.255 11,485 1,432 96,815 7,924 286 14,522

1590-1600 113,695 1.486 0.178 6.725 5,432 202 24,582 3,748 40 3,687

1580-1590 106,967 2.269 0.109 5.729 7,803 117 19,702 5,384 23 2,955

1570-1580 70,217 1.606 0.116 8.316 3,626 81 18,774 2,502 16 2,816

1560-1570 39,688 1.476 0.069 8.286 1,883 27 10,573 1,300 5 1,586

1550-1560 70,639 2.702 0.059 6.561 6,136 42 14,901 4,234 8 2,235

1540-1550 48,438 1.905 0.287 9.808 2,967 139 15,274 2,047 28 2,291

1530-1540 67,948 1.580 0.811 17.974 3,452 551 39,266 2,382 110 5,890

1520-1530 20,183 1.368 0.973 23.956 888 196 15,545 612 39 2,332

1510-1520 673 1.070 1.153 18.910 23 8 409 16 2 61

1500-1510

Total 4,054,531 2.073 0.496 14.294 270,216 20,119 1,863,257 186,449 4,023 279,489

Proved Ore Reserves - Agitation Leaching Process - Sulphide Mineralisation



May 2012 23 | P a g e

Table 5.7 - Proved Ore Reserves Estimation for the Flotation Process of the Sulphide Mineralisation by Benches

Benches Tonnage



1790-1800

1780-1790

1770-1780

1760-1770

1750-1760

1740-1750

1730-1740

1720-1730

1710-1720

1700-1710

1690-1700

1680-1690

1670-1680 12,110 0.624 0.087 8.091 243 11 3,150 134 2 473

1660-1670 173,570 0.579 0.211 8.800 3,231 366 49,107 1,777 73 7,366

1650-1660 581,953 0.624 0.232 7.580 11,675 1,350 141,823 6,421 270 21,274

1640-1650 955,335 0.614 0.289 6.061 18,859 2,761 186,162 10,372 552 27,924

1630-1640 839,830 0.577 0.281 6.123 15,580 2,360 165,328 8,569 472 24,799

1620-1630 811,629 0.628 0.251 5.474 16,387 2,037 142,841 9,013 407 21,426

1610-1620 701,477 0.609 0.231 4.888 13,735 1,620 110,239 7,554 324 16,536

1600-1610 670,059 0.580 0.154 3.909 12,495 1,032 84,211 6,872 206 12,632

1590-1600 366,649 0.544 0.093 3.014 6,413 341 35,529 3,527 68 5,329

1580-1590 269,856 0.541 0.114 3.306 4,694 308 28,683 2,582 62 4,302

1570-1580 175,293 0.619 0.164 4.425 3,489 287 24,938 1,919 57 3,741

1560-1570 144,132 0.516 0.096 2.620 2,391 138 12,141 1,315 28 1,821

1550-1560 125,130 0.492 0.127 4.222 1,979 159 16,985 1,089 32 2,548

1540-1550 109,658 0.617 0.325 10.798 2,175 356 38,069 1,196 71 5,710

1530-1540 66,602 0.634 0.417 10.166 1,358 278 21,769 747 56 3,265

1520-1530 33,638 0.614 0.525 10.185 664 177 11,015 365 35 1,652

1510-1520 3,364 0.648 0.472 12.957 70 16 1,401 39 3 210

1500-1510

Total 6,040,284 0.594 0.225 5.527 115,437 13,597 1,073,393 63,490 2,719 161,009

Proved Ore Reserves - Flotation Process - Sulphide Mineralisation

Recovered ProductsGrades Products


May 2012 24 | P a g e

Table 5.8 - Probable Ore Reserves Estimation by Products and Benches

Benches Tonnage



1790-1800

1780-1790

1770-1780

1760-1770

1750-1760

1740-1750

1730-1740

1720-1730

1710-1720

1700-1710 755 0.565 0.019 2.115 14 51 10 10

1690-1700 23,787 0.404 0.025 1.568 309 6 1,199 216 1 240

1680-1690 90,399 0.476 0.022 2.727 1,383 20 7,926 968 3 1,585

1670-1680 113,411 1.023 0.070 5.568 3,730 80 20,301 2,978 14 8,489

1660-1670 356,424 1.203 0.147 10.156 13,787 524 116,384 11,288 97 58,892

1650-1660 482,760 1.469 0.295 14.988 22,802 1,422 232,623 18,429 268 108,877

1640-1650 531,939 1.169 0.285 10.210 19,998 1,514 174,606 15,947 275 75,084

1630-1640 390,619 0.827 0.149 7.563 10,388 582 94,983 7,784 97 30,000

1620-1630 392,295 0.842 0.167 8.063 10,619 655 101,696 7,794 111 28,793

1610-1620 233,354 0.894 0.208 7.555 6,706 485 56,684 4,934 87 17,573

1600-1610 293,590 0.854 0.250 7.100 8,062 734 67,021 5,863 131 21,637

1590-1600 341,854 1.101 0.353 10.094 12,101 1,208 110,946 9,359 218 46,114

1580-1590 338,717 1.242 0.525 12.080 13,522 1,778 131,551 10,847 329 63,195

1570-1580 308,476 1.118 0.622 12.899 11,087 1,920 127,928 8,758 349 56,308

1560-1570 199,147 1.080 0.598 13.344 6,916 1,190 85,435 5,579 220 40,639

1550-1560 139,456 0.808 0.388 10.564 3,624 542 47,364 2,806 97 18,770

1540-1550 100,098 0.510 0.182 6.054 1,640 182 19,483 1,158 28 4,206

1530-1540 118,403 0.491 0.211 8.774 1,869 250 33,401 1,244 43 5,993

1520-1530 137,241 0.850 0.593 15.738 3,750 814 69,443 2,586 151 13,248

1510-1520 108,313 1.060 0.934 15.850 3,690 1,011 55,194 2,703 193 17,912

1500-1510 24,892 1.174 0.699 11.878 939 174 9,506 733 33 4,036

Total 4,725,928 1.033 0.319 10.292 156,939 15,091 1,563,725 121,984 2,745 621,601




May 2012 25 | P a g e

Table 5.9 - Probable Ore Reserves Estimation by Waste, Ore, Strip Ratio and Benches




1790-1800

1780-1790

1770-1780 20,347 0.009 0.009 0.250 20,347

1760-1770 220,422 0.008 0.008 0.250 220,422

1750-1760 452,465 0.009 0.009 0.378 452,465

1740-1750 637,897 0.011 0.009 0.708 637,897

1730-1740 661,349 0.015 0.012 0.329 661,349

1720-1730 894,902 0.015 0.011 0.260 894,902

1710-1720 1,177,415 0.017 0.011 0.270 1,177,415

1700-1710 1,259,307 0.029 0.014 0.577 755 0.565 0.019 2.115 1,260,062 1667.515

1690-1700 1,339,731 0.039 0.015 0.719 23,787 0.404 0.025 1.568 1,363,519 56.321

1680-1690 1,314,414 0.040 0.015 0.931 90,399 0.476 0.022 2.727 1,404,812 14.540

1670-1680 1,450,870 0.061 0.019 1.202 113,411 1.023 0.070 5.568 1,564,281 12.793

1660-1670 1,139,088 0.069 0.019 1.494 356,424 1.203 0.147 10.156 1,495,511 3.196

1650-1660 802,849 0.078 0.024 1.252 482,760 1.469 0.295 14.988 1,285,610 1.663

1640-1650 445,904 0.099 0.031 1.779 531,939 1.169 0.285 10.210 977,842 0.838

1630-1640 344,056 0.119 0.048 1.907 390,619 0.827 0.149 7.563 734,675 0.881

1620-1630 243,021 0.115 0.062 1.749 392,295 0.842 0.167 8.063 635,315 0.619

1610-1620 248,966 0.150 0.080 2.584 233,354 0.894 0.208 7.555 482,320 1.067

1600-1610 76,788 0.133 0.043 1.892 293,590 0.854 0.250 7.100 370,378 0.262

1590-1600 58,401 0.167 0.098 2.786 341,854 1.101 0.353 10.094 400,255 0.171

1580-1590 58,898 0.179 0.094 4.004 338,717 1.242 0.525 12.080 397,615 0.174

1570-1580 80,212 0.146 0.165 2.011 308,476 1.118 0.622 12.899 388,688 0.260

1560-1570 83,225 0.180 0.170 2.428 199,147 1.080 0.598 13.344 282,372 0.418

1550-1560 95,526 0.182 0.203 2.570 139,456 0.808 0.388 10.564 234,982 0.685

1540-1550 80,726 0.195 0.200 2.841 100,098 0.510 0.182 6.054 180,824 0.806

1530-1540 67,275 0.165 0.125 3.030 118,403 0.491 0.211 8.774 185,678 0.568

1520-1530 25,565 0.072 0.102 3.896 137,241 0.850 0.593 15.738 162,805 0.186

1510-1520 23,546 0.166 0.320 6.484 108,313 1.060 0.934 15.850 131,859 0.217

1500-1510 12,782 0.196 0.190 2.071 24,892 1.174 0.699 11.878 37,674 0.514

Total 13,315,944 0.052 0.025 0.991 4,725,928 1.033 0.319 10.292 18,041,872 2.818


GradesGrades


May 2012 26 | P a g e

Table 5.10 - Probable Ore Reserves Estimation for the Heap Leaching Process of the Oxide Mineralisation by Benches

Benches Tonnage



1790-1800

1780-1790

1770-1780

1760-1770

1750-1760

1740-1750

1730-1740

1720-1730

1710-1720

1700-1710 755 0.565 0.019 2.115 14 51 10 10

1690-1700 23,787 0.404 0.025 1.568 309 6 1,199 216 1 240

1680-1690 90,399 0.476 0.022 2.727 1,383 20 7,926 968 3 1,585

1670-1680 74,840 0.525 0.049 3.751 1,263 37 9,026 884 6 1,805

1660-1670 169,315 0.492 0.093 4.703 2,678 157 25,601 1,875 24 5,120

1650-1660 255,150 0.569 0.132 6.075 4,668 337 49,835 3,267 51 9,967

1640-1650 312,021 0.600 0.173 6.463 6,019 540 64,835 4,213 81 12,967

1630-1640 287,947 0.633 0.135 6.289 5,860 389 58,222 4,102 58 11,644

1620-1630 277,865 0.561 0.142 6.131 5,012 395 54,772 3,508 59 10,954

1610-1620 120,975 0.566 0.168 5.321 2,201 203 20,696 1,541 30 4,139

1600-1610 135,778 0.713 0.228 6.548 3,113 310 28,584 2,179 46 5,717

1590-1600 141,057 0.598 0.335 7.023 2,712 473 31,850 1,898 71 6,370

1580-1590 137,023 0.608 0.381 6.937 2,678 522 30,560 1,875 78 6,112

1570-1580 155,992 0.653 0.450 8.638 3,275 702 43,322 2,292 105 8,664

1560-1570 94,467 0.650 0.367 8.705 1,974 347 26,439 1,382 52 5,288

1550-1560 89,132 0.638 0.265 8.417 1,828 236 24,120 1,280 35 4,824

1540-1550 93,378 0.491 0.182 5.825 1,474 170 17,488 1,032 25 3,498

1530-1540 91,493 0.443 0.159 6.682 1,303 145 19,655 912 22 3,931

1520-1530 77,366 0.585 0.303 10.552 1,455 234 26,247 1,019 35 5,249

1510-1520 19,510 0.747 0.912 14.214 469 178 8,916 328 27 1,783

1500-1510 8,073 0.813 0.523 10.056 211 42 2,610 148 6 522

Total 2,656,324 0.584 0.205 6.463 49,900 5,442 551,953 34,930 816 110,391


Probable Ore Reserves - Heap Leaching Process - Oxide Mineralisation


May 2012 27 | P a g e

Table 5.11 - Probable Ore Reserves Estimation for the Agitation Leaching Process of the Oxide Mineralisation by Benches

Benches Tonnage



1790-1800

1780-1790

1770-1780

1760-1770

1750-1760

1740-1750

1730-1740

1720-1730

1710-1720

1700-1710

1690-1700

1680-1690

1670-1680 37,899 2.015 0.104 9.105 2,455 39 11,094 2,087 8 6,657

1660-1670 182,822 1.873 0.193 15.181 11,009 353 89,232 9,358 71 53,539

1650-1660 204,064 2.545 0.451 24.215 16,697 920 158,870 14,193 184 95,322

1640-1650 195,453 2.139 0.460 16.144 13,441 899 101,448 11,425 180 60,869

1630-1640 82,544 1.357 0.199 10.753 3,601 164 28,537 3,061 33 17,122

1620-1630 47,415 2.257 0.169 15.744 3,441 80 24,000 2,925 16 14,400

1610-1620 36,497 2.324 0.292 15.218 2,727 107 17,857 2,318 21 10,714

1600-1610 73,047 1.138 0.298 9.609 2,673 218 22,567 2,272 44 13,540

1590-1600 122,087 1.761 0.465 15.784 6,912 568 61,955 5,875 114 37,173

1580-1590 158,810 1.962 0.754 18.251 10,018 1,197 93,187 8,515 239 55,912

1570-1580 120,027 1.867 0.941 20.128 7,205 1,129 77,673 6,124 226 46,604

1560-1570 104,008 1.475 0.810 17.612 4,932 842 58,893 4,192 168 35,336

1550-1560 50,324 1.110 0.607 14.366 1,796 305 23,243 1,527 61 13,946

1540-1550 3,356 1.060 0.194 8.436 114 7 910 97 1 546

1530-1540

1520-1530 5,382 1.200 1.034 19.505 208 56 3,375 176 11 2,025

1510-1520 33,638 1.498 1.392 18.877 1,620 468 20,415 1,377 94 12,249

1500-1510 11,437 1.558 0.999 14.983 573 114 5,509 487 23 3,306

Total 1,468,807 1.894 0.508 16.915 89,422 7,467 798,766 76,009 1,493 479,260

Probable Ore Reserves - Agitation Leaching Process - Oxide Mineralisation



May 2012 28 | P a g e

Table 5.12 - Probable Ore Reserves Estimation for the Agitation Leaching Process of the Sulphide Mineralisation by Benches

Benches Tonnage



1790-1800

1780-1790

1770-1780

1760-1770

1750-1760

1740-1750

1730-1740

1720-1730

1710-1720

1700-1710

1690-1700

1680-1690

1670-1680

1660-1670

1650-1660 16,819 2.361 0.752 39.139 1,277 126 21,164 881 25 3,175

1640-1650 1,092 2.626 0.160 11.703 92 2 411 64 62

1630-1640 12,149 2.035 0.168 17.578 795 20 6,866 548 4 1,030

1620-1630 21,991 1.711 0.251 14.978 1,210 55 10,590 835 11 1,588

1610-1620 15,473 1.391 0.268 11.952 692 41 5,946 477 8 892

1600-1610 22,285 1.597 0.449 12.693 1,144 100 9,094 790 20 1,364

1590-1600 39,860 1.241 0.296 7.780 1,590 118 9,970 1,097 24 1,496

1580-1590 673 1.043 0.125 9.621 23 1 208 16 31

1570-1580 1,429 1.114 0.445 13.147 51 6 604 35 1 91

1560-1570

1550-1560

1540-1550

1530-1540 4,037 1.103 0.805 24.879 143 32 3,229 99 6 484

1520-1530 39,692 1.361 0.989 25.962 1,737 393 33,131 1,198 79 4,970

1510-1520 20,855 1.250 0.962 20.379 838 201 13,664 578 40 2,050

1500-1510 2,018 1.446 0.360 11.596 94 7 752 65 1 113

Total 198,372 1.519 0.556 18.130 9,686 1,103 115,629 6,683 220 17,344

Probable Ore Reserves - Agitation Leaching Process - Sulphide Mineralisation



May 2012 29 | P a g e

Table 5.13 - Probable Ore Reserves Estimation for the Flotation Process of the Sulphide Mineralisation by Benches

Benches Tonnage



1790-1800

1780-1790

1770-1780

1760-1770

1750-1760

1740-1750

1730-1740

1720-1730

1710-1720

1700-1710

1690-1700

1680-1690

1670-1680 671 0.555 0.554 8.379 12 4 181 7 1 27

1660-1670 4,287 0.725 0.320 11.254 100 14 1,551 55 3 233

1650-1660 6,728 0.741 0.572 12.734 160 38 2,754 88 8 413

1640-1650 23,372 0.593 0.314 10.529 446 73 7,912 245 15 1,187

1630-1640 7,980 0.514 0.104 5.295 132 8 1,358 73 2 204

1620-1630 45,025 0.661 0.278 8.521 957 125 12,335 526 25 1,850

1610-1620 60,409 0.559 0.221 6.274 1,086 134 12,185 597 27 1,828

1600-1610 62,480 0.564 0.170 3.373 1,133 106 6,776 623 21 1,016

1590-1600 38,850 0.710 0.129 5.741 887 50 7,171 488 10 1,076

1580-1590 42,211 0.592 0.137 5.597 803 58 7,596 442 12 1,139

1570-1580 31,028 0.558 0.264 6.344 557 82 6,329 306 16 949

1560-1570 673 0.419 0.193 4.784 9 1 103 5 16

1550-1560

1540-1550 3,364 0.480 0.171 10.035 52 6 1,085 29 1 163

1530-1540 22,874 0.575 0.313 14.301 423 72 10,517 233 14 1,578

1520-1530 14,801 0.736 0.889 14.060 350 132 6,690 193 26 1,004

1510-1520 34,310 0.692 0.480 11.059 763 165 12,199 420 33 1,830

1500-1510 3,364 0.571 0.304 5.861 62 10 634 34 2 95

Total 402,425 0.613 0.268 7.526 7,931 1,077 97,377 4,362 215 14,606


Probable Ore Reserves - Flotation Process - Sulphide Mineralisation


May 2012 30 | P a g e

Table 5.14 - Proved and Probable Ore Reserves Estimation by Products and Benches

Benches Tonnage



1790-1800

1780-1790

1770-1780

1760-1770

1750-1760

1740-1750

1730-1740

1720-1730

1710-1720

1700-1710 755 0.565 0.019 2.115 14 51 10 10

1690-1700 33,185 0.398 0.022 1.996 425 7 2,130 297 1 426

1680-1690 161,070 0.485 0.024 3.147 2,514 39 16,297 1,773 6 3,620

1670-1680 414,775 0.764 0.114 6.944 10,193 471 92,607 7,764 76 28,290

1660-1670 1,390,559 1.027 0.220 9.754 45,925 3,058 436,099 35,607 545 162,747

1650-1660 2,945,372 1.354 0.268 12.168 128,193 7,882 1,152,220 96,464 1,487 381,135

1640-1650 3,501,168 1.354 0.311 9.845 152,412 10,871 1,108,187 111,410 2,078 309,648

1630-1640 2,914,020 1.178 0.280 9.812 110,394 8,148 919,261 78,014 1,561 220,042

1620-1630 2,343,230 1.178 0.305 9.314 88,736 7,149 701,649 60,588 1,379 146,912

1610-1620 1,577,992 1.085 0.371 8.207 55,034 5,855 416,379 36,694 1,157 76,679

1600-1610 1,234,204 0.835 0.265 6.558 33,135 3,267 260,218 21,465 635 52,241

1590-1600 837,326 0.896 0.211 6.449 24,123 1,765 173,622 16,759 329 55,644

1580-1590 735,633 1.116 0.304 7.845 26,393 2,236 185,533 19,076 419 71,633

1570-1580 586,948 1.001 0.402 9.542 18,890 2,360 180,059 13,664 433 64,723

1560-1570 415,615 0.882 0.340 8.534 11,781 1,414 114,032 8,612 263 45,339

1550-1560 366,106 1.033 0.214 7.086 12,161 782 83,408 8,424 143 24,385

1540-1550 266,940 0.803 0.258 8.733 6,891 688 74,947 4,477 129 12,632

1530-1540 259,007 0.811 0.420 11.534 6,752 1,087 96,046 4,423 210 15,470

1520-1530 191,734 0.861 0.620 15.616 5,311 1,190 96,261 3,570 226 17,283

1510-1520 112,349 1.047 0.921 15.782 3,783 1,035 57,005 2,757 198 18,183

1500-1510 24,892 1.174 0.699 11.878 939 174 9,506 733 33 4,036

Total 20,312,879 1.139 0.293 9.456 744,038 59,479 6,175,531 532,607 11,305 1,711,075




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Table 5.15 - Proved and Probable Ore Reserves Estimation by Waste, Ore, Strip Ratio and Benches




1790-1800

1780-1790

1770-1780 67,220 0.008 0.013 0.250 67,220

1760-1770 510,523 0.009 0.008 0.250 510,523

1750-1760 836,139 0.009 0.009 0.497 836,139

1740-1750 1,211,197 0.011 0.009 0.559 1,211,197

1730-1740 1,497,015 0.015 0.012 0.343 1,497,015

1720-1730 1,794,751 0.015 0.012 0.272 1,794,751

1710-1720 2,110,433 0.016 0.010 0.267 2,110,433

1700-1710 2,481,028 0.025 0.012 0.606 755 0.565 0.019 2.115 2,481,783 3285.260

1690-1700 2,752,143 0.036 0.015 0.865 33,185 0.398 0.022 1.996 2,785,328 82.934

1680-1690 2,997,427 0.050 0.016 1.362 161,070 0.485 0.024 3.147 3,158,497 18.609

1670-1680 3,274,793 0.074 0.022 1.777 414,775 0.764 0.114 6.944 3,689,568 7.895

1660-1670 3,095,297 0.091 0.027 2.183 1,390,559 1.027 0.220 9.754 4,485,857 2.226

1650-1660 2,710,857 0.107 0.036 2.339 2,945,372 1.354 0.268 12.168 5,656,229 0.920

1640-1650 2,067,059 0.131 0.066 2.709 3,501,168 1.354 0.311 9.845 5,568,227 0.590

1630-1640 1,656,935 0.153 0.095 2.413 2,914,020 1.178 0.280 9.812 4,570,955 0.569

1620-1630 1,154,401 0.158 0.133 1.892 2,343,230 1.178 0.305 9.314 3,497,631 0.493

1610-1620 920,408 0.179 0.188 2.080 1,577,992 1.085 0.371 8.207 2,498,400 0.583

1600-1610 782,874 0.171 0.112 1.400 1,234,204 0.835 0.265 6.558 2,017,078 0.634

1590-1600 840,351 0.207 0.079 2.072 837,326 0.896 0.211 6.449 1,677,677 1.004

1580-1590 618,441 0.263 0.081 2.962 735,633 1.116 0.304 7.845 1,354,074 0.841

1570-1580 472,014 0.217 0.087 2.168 586,948 1.001 0.402 9.542 1,058,962 0.804

1560-1570 511,395 0.338 0.148 3.719 415,615 0.882 0.340 8.534 927,010 1.230

1550-1560 465,604 0.527 0.171 5.764 366,106 1.033 0.214 7.086 831,710 1.272

1540-1550 369,986 0.567 0.168 6.597 266,940 0.803 0.258 8.733 636,926 1.386

1530-1540 208,617 0.288 0.139 3.630 259,007 0.811 0.420 11.534 467,624 0.805

1520-1530 90,821 0.211 0.129 4.402 191,734 0.861 0.620 15.616 282,555 0.474

1510-1520 46,420 0.330 0.483 7.878 112,349 1.047 0.921 15.782 158,769 0.413

1500-1510 12,782 0.196 0.190 2.071 24,892 1.174 0.699 11.878 37,674 0.514

Total 35,556,931 0.096 0.045 1.621 20,312,879 1.139 0.293 9.456 55,869,810 1.750


GradesGrades


May 2012 32 | P a g e

Table 5.16 - Proved and Probable Ore Reserves Estimation for the Heap Leaching Process of the Oxide Mineralisation by Benches

Benches Tonnage



1790-1800

1780-1790

1770-1780

1760-1770

1750-1760

1740-1750

1730-1740

1720-1730

1710-1720

1700-1710 755 0.565 0.019 2.115 14 51 10 10

1690-1700 33,185 0.398 0.022 1.996 425 7 2,130 297 1 426

1680-1690 159,517 0.473 0.024 3.002 2,426 38 15,396 1,698 6 3,079

1670-1680 320,618 0.525 0.111 6.187 5,412 356 63,776 3,788 53 12,755

1660-1670 713,897 0.521 0.187 6.473 11,958 1,335 148,570 8,371 200 29,714

1650-1660 1,203,154 0.564 0.148 7.351 21,817 1,781 284,353 15,272 267 56,871

1640-1650 1,229,635 0.588 0.157 6.902 23,246 1,931 272,862 16,272 290 54,572

1630-1640 891,729 0.605 0.154 7.125 17,345 1,373 204,272 12,142 206 40,854

1620-1630 549,204 0.600 0.185 6.638 10,594 1,016 117,209 7,416 152 23,442

1610-1620 187,514 0.539 0.150 5.711 3,249 281 34,430 2,275 42 6,886

1600-1610 189,036 0.653 0.190 6.289 3,969 359 38,222 2,778 54 7,644

1590-1600 156,185 0.577 0.310 6.854 2,897 484 34,417 2,028 73 6,883

1580-1590 156,821 0.603 0.353 7.143 3,040 554 36,014 2,128 83 7,203

1570-1580 188,156 0.651 0.410 8.482 3,938 771 51,311 2,757 116 10,262

1560-1570 126,276 0.624 0.319 7.890 2,533 403 32,032 1,773 60 6,406

1550-1560 120,013 0.583 0.230 7.329 2,250 276 28,279 1,575 41 5,656

1540-1550 102,124 0.482 0.177 5.971 1,583 181 19,605 1,108 27 3,921

1530-1540 97,547 0.439 0.158 6.781 1,377 154 21,267 964 23 4,253

1520-1530 78,039 0.584 0.304 10.564 1,465 237 26,505 1,026 36 5,301

1510-1520 19,510 0.747 0.912 14.214 469 178 8,916 328 27 1,783

1500-1510 8,073 0.813 0.523 10.056 211 42 2,610 148 6 522

Total 6,530,990 0.572 0.180 6.869 120,203 11,761 1,442,247 84,142 1,764 288,449

Grades Products

Proved and Probable Ore Reserves - Heap Leaching Process - Oxide Mineralisation

Recovered Products


May 2012 33 | P a g e

Table 5.17 - Proved and Probable Ore Reserves Estimation for the Agitation Leaching Process of the Oxide Mineralisation by Benches

Benches Tonnage



1790-1800

1780-1790

1770-1780

1760-1770

1750-1760

1740-1750

1730-1740

1720-1730

1710-1720

1700-1710

1690-1700

1680-1690 1,553 1.762 0.048 18.053 88 1 901 75 541

1670-1680 79,358 1.744 0.125 9.764 4,450 99 24,912 3,782 20 14,947

1660-1670 431,531 1.922 0.239 14.400 26,666 1,031 199,786 22,666 206 119,872

1650-1660 688,683 2.667 0.317 19.479 59,052 2,183 431,298 50,194 437 258,779

1640-1650 594,949 2.847 0.313 15.077 54,458 1,862 288,394 46,289 372 173,036

1630-1640 389,072 1.934 0.245 12.780 24,192 953 159,864 20,563 191 95,919

1620-1630 156,372 2.088 0.324 15.826 10,497 507 79,565 8,923 101 47,739

1610-1620 54,661 2.712 0.461 15.807 4,766 252 27,779 4,051 50 16,667

1600-1610 79,100 1.150 0.304 9.872 2,925 240 25,106 2,486 48 15,063

1590-1600 122,087 1.761 0.465 15.784 6,912 568 61,955 5,875 114 37,173

1580-1590 159,105 1.960 0.754 18.247 10,026 1,200 93,339 8,522 240 56,004

1570-1580 120,826 1.861 0.937 20.107 7,229 1,132 78,108 6,145 226 46,865

1560-1570 104,847 1.472 0.806 17.557 4,962 845 59,183 4,218 169 35,510

1550-1560 50,324 1.110 0.607 14.366 1,796 305 23,243 1,527 61 13,946

1540-1550 3,356 1.060 0.194 8.436 114 7 910 97 1 546

1530-1540

1520-1530 5,382 1.200 1.034 19.505 208 56 3,375 176 11 2,025

1510-1520 33,638 1.498 1.392 18.877 1,620 468 20,415 1,377 94 12,249

1500-1510 11,437 1.558 0.999 14.983 573 114 5,509 487 23 3,306

Total 3,086,278 2.223 0.383 15.960 220,566 11,821 1,583,628 187,481 2,363 950,177

Proved and Probable Ore Reserves - Agitation Leaching Process - Oxide Mineralisation



May 2012 34 | P a g e

Table 5.18 - Proved and Probable Ore Reserves Estimation for the Agitation Leaching Process of the Sulphide Mineralisation by Benches

Benches Tonnage



1790-1800

1780-1790

1770-1780

1760-1770

1750-1760

1740-1750

1730-1740

1720-1730

1710-1720

1700-1710

1690-1700

1680-1690

1670-1680 2,018 1.183 0.098 9.060 77 2 588 53 88

1660-1670 67,275 1.834 0.463 17.143 3,967 311 37,079 2,737 62 5,562

1650-1660 464,855 2.375 0.544 19.537 35,495 2,529 291,989 24,492 506 43,798

1640-1650 697,876 2.470 0.609 15.726 55,420 4,250 352,848 38,240 850 52,927

1630-1640 785,409 2.104 0.439 15.383 53,129 3,448 388,444 36,659 690 58,267

1620-1630 781,000 2.004 0.444 13.927 50,320 3,468 349,703 34,721 694 52,455

1610-1620 573,931 1.745 0.622 12.559 32,199 3,570 231,742 22,217 714 34,761

1600-1610 233,528 1.682 0.656 14.106 12,629 1,532 105,909 8,714 306 15,886

1590-1600 153,555 1.423 0.208 6.999 7,025 319 34,553 4,847 64 5,183

1580-1590 107,640 2.262 0.109 5.753 7,828 117 19,909 5,401 23 2,986

1570-1580 71,646 1.596 0.122 8.412 3,676 87 19,377 2,537 17 2,907

1560-1570 39,688 1.476 0.069 8.286 1,883 27 10,573 1,300 5 1,586

1550-1560 70,639 2.702 0.059 6.561 6,136 42 14,901 4,234 8 2,235

1540-1550 48,438 1.905 0.287 9.808 2,967 139 15,274 2,047 28 2,291

1530-1540 71,984 1.553 0.811 18.361 3,594 584 42,494 2,480 117 6,374

1520-1530 59,875 1.363 0.983 25.286 2,624 589 48,676 1,810 118 7,301

1510-1520 21,528 1.244 0.968 20.333 861 208 14,073 594 42 2,111

1500-1510 2,018 1.446 0.360 11.596 94 7 752 65 1 113

Total 4,252,904 2.047 0.499 14.473 279,901 21,222 1,978,886 193,132 4,244 296,833

Proved and Probable Ore Reserves - Agitation Leaching Process - Sulphide Mineralisation



May 2012 35 | P a g e

Table 5.19 - Proved and Probable Ore Reserves Estimation for the Flotation Process of the Sulphide Mineralisation by Benches

Benches Tonnage



1790-1800

1780-1790

1770-1780

1760-1770

1750-1760

1740-1750

1730-1740

1720-1730

1710-1720

1700-1710

1690-1700

1680-1690

1670-1680 12,781 0.620 0.112 8.106 255 14 3,331 140 3 500

1660-1670 177,856 0.583 0.214 8.860 3,334 381 50,663 1,834 76 7,600

1650-1660 588,680 0.625 0.236 7.639 11,829 1,389 144,580 6,506 278 21,687

1640-1650 978,708 0.613 0.289 6.168 19,289 2,828 194,083 10,609 566 29,113

1630-1640 847,810 0.577 0.280 6.115 15,728 2,374 166,681 8,650 475 25,002

1620-1630 856,654 0.629 0.252 5.634 17,324 2,159 155,172 9,528 432 23,276

1610-1620 761,887 0.605 0.230 4.998 14,820 1,752 122,427 8,151 350 18,364

1600-1610 732,539 0.578 0.155 3.863 13,613 1,135 90,980 7,487 227 13,647

1590-1600 405,499 0.559 0.097 3.275 7,288 393 42,696 4,008 79 6,404

1580-1590 312,067 0.548 0.117 3.615 5,498 365 36,270 3,024 73 5,440

1570-1580 206,320 0.610 0.179 4.713 4,046 369 31,263 2,225 74 4,689

1560-1570 144,805 0.516 0.096 2.630 2,402 139 12,244 1,321 28 1,837

1550-1560 125,130 0.492 0.127 4.222 1,979 159 16,985 1,089 32 2,548

1540-1550 113,022 0.613 0.320 10.776 2,227 362 39,157 1,225 72 5,874

1530-1540 89,476 0.619 0.390 11.223 1,781 349 32,285 979 70 4,843

1520-1530 48,438 0.651 0.636 11.369 1,014 308 17,705 558 62 2,656

1510-1520 37,674 0.688 0.479 11.229 833 180 13,601 458 36 2,040

1500-1510 3,364 0.571 0.304 5.861 62 10 634 34 2 95

Total 6,442,709 0.596 0.228 5.652 123,368 14,675 1,170,770 67,853 2,935 175,615

Proved and Probable Ore Reserves - Flotation Process - Sulphide Mineralisation



May 2012 36 | P a g e

Section 6 | Recommendations

CAE Mining International Limited recommends that the Azerbaijan International Mining Company Limited continue in the implementation and improvement of the best practices in the ore reserves estimation process of the Gedabek Mineral Deposit. Additionally, the development and implementation of several activities are recommended as follow:

CAE Mining International Limited is highlighting herein that the Azerbaijan International Mining Company Limited takes into consideration the recommendations done by Knight Piesold Property Limited (2007) that are described in the geotechnical assessment carried out during the Pre-Feasibility study of the Gedabek Mineral Deposit, which are summarised as follow:

Detailed structural mapping during mining will be important for the open pit

stability as toppling failure may be possible

Piezometers should be inserted in any new exploration drillhole drilled around the pit crest

An updated geotechnical assessment will be required in the short term to confirm that the preliminary open pit slope design parameters defined by Knight Piesold Property Limited (2007) are consistent given that the ultimate optimal open pit shell increased due to the increment of the mineral resources

Additional geotechnical assessment is also recommended in the short term that will support the underground mine design methods to be considered in mining the remaining measured and indicated mineral resources

The detailed open pit mine design over the life of the Gedabek Mining and Mineral Processing Operation will be required taking into account the updated ultimate optimal open pit shell and by considering the recommended open pit design parameters stated by Knight Piesold Property Limited (2007).


May 2012 37 | P a g e

Section 7 | References

CAE Mining International Limited, 2012, Updated Mineral Resources, Gedabek Mineral Deposit, Republic of Azerbaijan. 49 p.

Knight Piesold Property Limited, 2007, Pre-Feasibility Study, Open Pit Slope Designs, Heap Leach Facilities and Mine Infrastructure, 134 p.

The Joint Ore Reserves Committee, 2004, The JORC Code, Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Mineral Council of Australia, 2004 Edition, 20 p.

Van Der Merwe, J, 2011, Scouting Leachox and Flotation Test Work on Gedabek Sulphide Ore Samples, Maelgwyn Mineral Services Africa Property Limited, 27 p.


May 2012 38 | P a g e

Section 8 | Competence and Responsibility

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Guillermo Turner-Saad, who is a Fellow of The Australasian Institute of Mining and Metallurgy.

Guillermo Turner-Saad is a full-time employee of the company CAE Mining International Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Guillermo Turner-Saad consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Guillermo Turner-Saad Executive Geometallurgical Consultant CAE Mining

Competent Person and Fellow of The Australasian Institute of Mining and Metallurgy Membership 225310

Updated Ore Reserves - Anglo Asian Mining PLC Ore Reser… · · 2018-03-10Heap Leaching Process of the Oxide Mineralisation by Benches .... 20 Table 5.5 Proved Ore Reserves Estimation

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