Campo Morado Resource Summary

 

Campo Morado Mineral Resource Estimate - November 2017
Cut-off
Grade (ZnEq%)
ZnEq (%) Tonnes Au (g/t) Ag (g/t) Cu (%) Pb (%) Zn (%)
Measured
3.0 7.06 17,033,000 1.42 98 0.73 0.67 3.17
4.0 8.02 13,450,000 1.60 113 0.77 0.78 3.71
5.5 9.47 9,321,000 1.84 137 0.82 0.95 4.56
7.0 11.00 6,365,000 2.08 162 0.88 1.11 5.44
Indicated
3.0 6.17 16,869,000 1.27 119 0.69 0.60 2.26
4.0 7.14 12,366,000 1.43 145 0.73 0.73 2.68
5.5 8.79 7,399,000 1.72 200 0.79 0.92 3.30
7.0 10.78 4,188,000 1.99 286 0.87 1.11 3.89
Measured + Indicated
3.0 6.62 33,902,000 1.34 108 0.71 0.64 2.72
4.0 7.60 25,816,000 1.52 129 0.75 0.76 3.22
5.5 9.17 16,720,000 1.79 165 0.81 0.93 4.00
7.0 10.91 10,553,000 2.04 211 0.88 1.11 4.82
Inferred
3.0 5.15 3,318,000 0.99 86 0.53 0.59 2.10
4.0 6.03 2,157,000 1.12 105 0.57 0.71 2.54
5.5 7.64 997,000 1.33 150 0.67 0.92 3.20
7.0 9.49 437,000 1.57 226 0.81 1.08 3.65

Notes:
These resource estimates have been prepared by Eric Titley, P.Geo., a Professional Geologist registered in British Columbia as a member of the Association of Professional Engineers and Geoscientists BC. Mr. Titley is an independent qualified person, as defined in NI 43-101, who is responsible for the preparation of the technical information contained in the chart above in accordance with NI 43-101 and the CIM Definition Standards. Inferred mineral resources are considered to be too speculative to allow the application of technical and economic parameters to support mine planning and evaluation of the economic viability of the project. Under Canadian rules, estimates of Inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Economic Assessments as defined under 43-101. It cannot be assumed that all or any part of the Inferred resources will ever be upgraded to a higher category.

The mineral resources were depleted to December 2014, the last phase of mining, by removing all material from the tabulation as found in the excavation solids models provided by Telson Resources Inc.

Zinc equivalent calculations used metal prices of US$ 1.20/lb zinc, US$ 2.80/lb copper, US$ 17/oz silver, US$ 1150/oz gold and US$ 0.90/lb lead, and metallurgical recoveries of 70% zinc, 68% copper, 38% silver, 25% gold and 60% lead.

A 5.5% ZnEq cut-off is considered to be appropriate for underground mining operations in Mexico. All mineral resource estimates, cut-offs and metallurgical recoveries are subject to change as a consequence of more detailed economic analyses that would be required in pre-feasibility and feasibility studies. The 5.5% ZnEq cut-off in bold is considered the base case mineral resource estimate. Other estimates are presented in the context of cut-off grade sensitivity analysis.

Some figures may not sum exactly due to rounding.