Resource and Technical Update and DMS Update

RNS Number : 5209Y

Rambler Metals & Mining PLC

02 December 2014

 



2 December 2014

Rambler Provides Resource and Technical Update, Reporting a 52% Increase in Copper Metal Content for its Important Lower Footwall Zone and Update on the Dense Media Separation Project

London, England & Baie Verte, Newfoundland and Labrador, Canada -Rambler Metals and Mining plc (TSXV: RAB, AIM: RMM) ("Rambler" or "the Company"), a copper and gold producer, explorer, and developer today provides an updated NI43-101 resource estimate for the Ming Copper-Gold Mine as well as an update on the Dense Media Separation ('DMS') project as the Company works towards a pre-feasibility study associated with the Lower Footwall Zone ('LFZ').

HIGHLIGHTS of the Mineral Reserve and Resource Statement:

·     The Mineral Reserve remains unchanged from the previous estimate published on 27 January 2014. That estimate included 56,719,272 pounds of copper, 101,404 ounces of gold and 459,788 ounces of silver in the Proven and Probable categories.

·     The audited and updated Mineral Resource is estimated to contain 962,970,430 pounds of copper, 257,702 ounces of gold and 1,790,949 ounces of silver in the Measured and Indicated categories.  This represents a 38 per cent increase for in-situ copper metal content for the entire Ming Copper-Gold Mine, largely driven by the mine's LFZ that saw a 52 per cent increase in contained copper metal, coinciding with a 5 per cent increase in copper grade for that zone (See Table 7 under Appendix 2).

·     The resource estimate was completed by an independent third party consultant, WSP Canada Inc. A summary of their work can be found in Table 1 and 2 below with additional details found under the appendices section.

Update ON Dense Media Separation ('DMS') Project

·     In an effort to optimize the capital and operating costs associated with the Lower Footwall Zone, as part of a pre-feasibility study targeted for completion mid calendar 2015, Rambler has been testing cost‐saving ore pre‐concentration techniques - specifically Dense Media Separation. DMS could significantly reduce material handling requirements and enable full optimization of the Company's fully permitted and operating Nugget Pond Processing Facility.

·     The group continues to make good progress with the final phase of pre-concentration test work:

o  Construction and dry commissioning of the onsite DMS demonstration plant at Nugget Pond is now complete. 

o  Wet commissioning, followed by live testing with run of mine material, is expected to commence within the coming weeks.

Norman Williams, President and CEO, commented:

"The resource update is a positive step forward for the Company and its goal of integrating the Lower Footwall Zone into the mine's production stream.  While the resource has shown a good increase at the 1.0 per cent copper cut-off grade, more importantly, the higher-grade core of the LFZ has also seen significant tonnes added in the measured and indicated categories.  This high grade core will be a priority target for inclusion in the next reserve update, with or without the use of DMS technology.

"With the group now in the final phase of test work to determine the operating parameters for pre-concentrating the LFZ using DMS technology, it will soon initiate a pre-feasibility study to evaluate the economic viability of a staged low-capital expansion program to boost production as well as increasing mine life."  

MINERAL RESERVE AND RESOURCE UPDATE

RESERVE

·     The Mineral Reserve remains unchanged from the previous estimate published on 27 January 2014. That estimate included 56,719,272 pounds of copper, 101,404 ounces of gold and 459,788 ounces of silver in the Proven and Probable categories. (Table 1).

Table 1: Mineral Reserve Estimate Summary for the Ming Copper-Gold Mine 

Classification	Quantity	Grades				Contained Metal
		Copper	Gold	Silver	Zinc	Copper	Gold	Silver	Zinc
	tonnes	%	g/t	g/t	%	lbs	oz	oz	lbs
Total Proven Reserve	682,865	2.61	2.65	13.51	0.50	39,279,264	58,174	296,509	7,501,039
(undiluted, unrecovered)
Total Probable Reserve	636,810	1.61	2.60	10.13	0.42	22,613,348	53,169	207,461	5,901,814
(undiluted, unrecovered)
Dilution (all sources)	338,865	0.07	0.05	0.22	0.01	544,122	514	2,395	56,284
Reserve (diluted and recovered)	1,509,175	1.70	2.09	9.48	0.37	56,719,272	101,404	459,788	12,215,543
* All figures are rounded to reflect the accuracy of the estimate. This reserve statement reflects changes to reserves in the 1807 and 1806 zones based on i) 1807 Zone depletion due to mining, ii) 1807 Zone additions due to new exploration drilling results, and iii) 1806 Zone depletion due to mining. The NSR of the 1807 zone reserve material was calculated using all-in costs of $146.86/tonne of ore milled, and forecast metal prices of US$3.15 per pound copper and US$1294 per ounce gold, and US$19.13 per ounce silver. The US/CAN FX rate is 1:1. The calculated reserve cut off grade (in copper equivalent terms) is 2.33 per cent copper.

RESOURCE

·     Total metal content for the entire Ming Copper-Gold mine has increased 38 per cent, largely driven by the mine's LFZ that saw a 52 per cent increase in contained copper metal. (Table 2 & 3)

·     The audit work focused on improving upon the previous resource estimate for the Lower Footwall Zone with a new understanding of the nature of the copper mineralization throughout the zone.  Following the audit, the grade estimation process was refined so that the copper distribution in the resource blocks reflected the grade observed in the new underground development used to access the bulk sample for the associated Dense Media Separation project. 

Table 2: Mineral Resource Estimate Summary for the Ming Copper-Gold Mine 

Classification		Quantity	Grades				Contained Metal
			Copper	Gold	Silver	Zinc	Copper	Gold	Silver	Zinc
		(000't)	%	g/t	g/t	%	lbs	oz	oz	lbs
Measured Total		19,219	1.53	0.23	1.91	0.05	649,526,804	140,770	1,182,945	21,550,196
Indicated Total		9,204	1.54	0.40	2.05	0.07	313,443,626	116,932	608,004	13,342,841
M&I Total		28,423	1.54	0.28	1.96	0.06	962,970,430	257,702	1,790,949	34,893,037
Inferred Total		5,094	1.52	0.67	3.80	0.22	170,728,177	110,203	622,393	22,274,785
* Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. All figures are rounded to reflect the accuracy of the estimate.  Cut‐off grades of 1.0 per cent copper for the massive sulphides, 1.25 grams per tonne gold for the 1806 zone and 1.00 per cent copper for the stringer sulphides have been used in the estimate.  Cut‐offs are based on an NSR model and long term metal prices of US$3.15 per pound copper and US$1294 per ounce gold, and US$19.13 per ounce silver.  Zinc does not contribute to the revenues. Resources are inclusive of reserves.

Table 3: Per Cent Change for LFZ Measured and Indicated Resources Combined (See Appendix 2 - Table 7 for Additional Detail)
	Interval		Quantity	Grades							Contained Metal
	Above			Copper		Gold	Silver		Zinc		Copper		Gold	Silver	Zinc
	Cu %		(000' t)	%		g/t	g/t		%		lbs		oz	oz	lbs
	0.25		3%	18%		30%	12%		39%		21%		34%	16%	43%
	0.50		18%	10%		24%	6%		34%		30%		47%	26%	58%
	0.75		31%	6%		22%	2%		34%		39%		60%	34%	76%
	1.00		45%	5%		23%	-3%		41%		52%		78%	41%	105%
	1.25		69%	2%		26%	-7%		43%		72%		112%	57%	142%
	1.50		67%	2%		34%	-6%		42%		71%		124%	57%	138%
	1.75		71%	3%		40%	-5%		40%		77%		140%	63%	140%
	2.00		90%	4%		43%	-6%		38%		97%		172%	79%	161%
	2.25		125%	5%		36%	-7%		49%		136%		207%	109%	236%
	2.50		256%	2%		20%	-10%		62%		262%		328%	221%	477%
	3.00		418%	-2%		1%	-20%		21%		408%		424%	313%	527%

(1)      Table comparing per cent change of current Lower Footwall Zone mineral resource estimate to previous estimate release on 27 January 2014.

The resource estimate for the LFZ was prepared by Todd McCracken, P. Geo. of WSP Canada Inc., Sudbury, ON. Mr. McCracken is a qualified person and independent of the Company, as defined by section 1.5 of NI 43-101. The mineral resource estimate is based on the combination of geological modeling, geostatistics and conventional block modeling using the Ordinary Kriging method of grade interpolation. The mineral resources were estimated using a block model with parent blocks of 10m X 10m X 10m split into sub-blocks with minimum size of 1.25m X 1.25m X 1.25m. The geological model and mineralized intersections were generated by Rambler personnel then audited by WSP. The quality control and quality assurance ('QA/QC') protocols and corresponding sample preparation and shipment procedures have been reviewed by WSP and are in accordance with Canadian Institute of Mining, Metallurgy and Petroleum Best Practices. Mr. McCracken audited the resources for the remaining zones on the Property and deemed the estimation procedures to have followed acceptable industry practices.

The mineral reserve on the property remains unchanged from the 27 January 2014 estimate while the improvements in the LFZ resource estimate has yet to be converted into a mineral reserve.  The Company will soon initiate a pre-feasibility study to evaluate the economic viability of this new resource and how it can be integrated into the current mine plan.  The results of this work will be announced in concert with the filing of the associated technical report. The Company is targeting mid calendar 2015 for the completion of this work.

Dense Media Separation ('DMS') Project

The mineralization of the Lower Footwall Zone consists of dense, narrow copper rich stringer sulphides hosted within lighter weight un-mineralized chlorite schist. The initial phase of bench scale and mini-pilot processing, developed with the assistance of the Research & Development Corporation of Newfoundland and Labrador ('RDC'), has revealed that physical separation of the denser mineralization from the lighter rock using DMS is possible. Bench scale and pilot testing indicates that technically the DMS process could increase the grade of copper in the LFZ by removing 30 per cent to 40 per cent of the lighter waste host rock with copper recoveries averaging 95 per cent.  In terms of grade improvement, the mini-pilot testing using run of mine material from the LFZ grading 1.39 per cent copper returned a pre-concentrate grade of 2.27 per cent copper (an upgrade ratio of 1.63).

The group continues to make good progress with the final phase of pre-concentration test work.  Construction and dry commissioning of the onsite DMS demonstration plant at Nugget Pond is now complete. Wet commissioning, followed by live testing with run of mine material, is expected to commence within the coming weeks.

ABOUT RAMBLER METALS AND MINING

Rambler is a mining and development Company that in November 2012 brought its first mine into commercial production.  The group has a 100 per cent ownership in the Ming Copper-Gold Mine, a fully operational base and precious metals processing facility and year round bulk storage and shipping facility; all located on the Baie Verte peninsula, Newfoundland and Labrador, Canada.

The Company's Vision is to be Atlantic Canada's leading mine operator and resource developer through growth and expansion of its existing assets; discovering new deposits; strategic partnerships; mergers and acquisitions.  In addition to the Ming Mine, Rambler has strategic investments in the former producing Hammerdown gold mine, the Little Deer/ Whales Back copper mines and the advanced Valentine Lake Gold Project.

Rambler is dual listed in London under AIM:RMM and in Canada under TSX-V:RAB.

For further information, please contact:

Norman Williams, CA President and CEO Rambler Metals & Mining Plc Tel No: 709-800-1929 Fax No: 709-800-1921	Peter Mercer Vice President, Corporate Secretary Rambler Metals & Mining Plc Tel No: [phone] Fax No: [phone]
Stewart Dickson / Jeremy Stephenson Cantor Fitzgerald Europe Tel No: [phone]	Tim Blythe/ Halimah Hussain Blytheweigh Tel No: [phone]

Website: www.ramblermines.com

Larry Pilgrim, P.Geo., is the Qualified Person responsible for the technical content of this release and has reviewed and approved it accordingly. Mr. Pilgrim is an independent consultant contracted by Rambler Metals and Mining Canada Limited.

The reserve and resource estimate for the Ming Copper-Gold Mine was compiled in accordance with the generally accepted Canadian Institute of Mining, Metallurgy and Petroleum ('CIM') "Estimation of Mineral Resource and Mineral Reserve Best Practices and Guidelines".  The estimate has been completed to the National Instruments 43-101 standards of disclosure for Mineral Projects in Canada.

Tonnes referenced are dry metric tonnes unless otherwise indicated; unless otherwise noted all figures are quoted in $US; the resource estimate is inclusive of the reserve estimate.

Commodity pricing for copper and gold is reflective of analyst consensus forecasts for 2014 - 2016 and Rambler's 2014 fiscal budget. Commodity pricing for silver is taken from Rambler's Life of Mine plan.

Neither TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward Looking Statements:

Certain information included in this press release, including information relating to future financial or operating performance and other statements that express the expectations of management or estimates of future performance constitute "forward-looking statements".  Such forward-looking statements include, without limitation, statements regarding copper, gold and silver forecasts, the financial strength of the Company, estimates regarding timing of future development and production and statements concerning possible expansion opportunities for the Company.  Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief are based on assumptions made in good faith and believed to have a reasonable basis.  Such assumptions include, without limitation, the price of and anticipated costs of recovery of, copper concentrate, gold and silver, the presence of and continuity of such minerals at modeled grades and values, the capacities of various machinery and equipment, the availability of personnel, machinery and equipment at estimated prices, mineral recovery rates, and others.  However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements.  Such risks include, but are not limited to, interpretation and implications of drilling and geophysical results; estimates regarding timing of future capital expenditures and costs towards profitable commercial operations.  Other factors that could cause actual results, developments or events to differ materially from those anticipated include, among others, increases/decreases in production; volatility in metals prices and demand; currency fluctuations; cash operating margins; cash operating cost per pound sold; costs per ton of ore; variances in ore grade or recovery rates from those assumed in mining plans; reserves and/or resources; the ability to successfully integrate acquired assets; operational risks inherent in mining or development activities and legislative factors relating to prices, taxes, royalties, land use, title and permits, importing and exporting of minerals and environmental protection.  Accordingly, undue reliance should not be placed on forward-looking statements and the forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement.  The forward-looking statements contained herein are made as at the date hereof and the Company does not undertake any obligation to update publicly or revise any such forward-looking statements or any forward-looking statements contained in any other documents whether as a result of new information, future events or otherwise, except as required under applicable security law.

APPENDIX 1

Table 4: Mineral Reserve Estimate for the Ming Copper-Gold Mine - 27 January 2014 ⁽¹⁾ 

Classification	Quantity	Grades				Contained Metal
		Copper	Gold	Silver	Zinc	Copper	Gold	Silver	Zinc
	(000't)	%	g/t	g/t	%	lbs	oz	oz	lbs
Proven 1807 Reserve	171,471	5.47	2.09	15.81	0.74	20,678,924	11,519	87,171	2,785,747
Proven Copper Reserve	478,717	1.70	2.61	10.99	0.35	17,904,279	40,094	169,122	3,712,465
Proven Gold Reserve	32,677	0.97	6.24	38.28	1.39	696,061	6,561	40,216	1,002,828
Total Proven Reserve	682,865	2.61	2.65	13.51	0.50	39,279,264	58,174	296,509	7,501,039
(undiluted, unrecovered)
Probable 1807 Reserve	25,535	4.43	2.53	17.16	0.78	2,494,520	2,078	14,087	440,429
Probable Copper Reserve	600,115	1.50	2.57	9.71	0.39	19,901,668	49,520	187,372	5,166,605
Probable Gold Reserve	11,160	0.88	4.38	16.73	1.20	217,160	1,572	6,002	294,781
Total Probable Reserve	636,810	1.61	2.60	10.13	0.42	22,613,348	53,169	207,461	5,901,814
(undiluted, unrecovered)
Dilution (all sources)	338,865	0.07	0.05	0.22	0.01	544,122	514	2,395	56,284
Reserve (diluted and recovered)	1,509,175	1.70	2.09	9.48	0.37	56,719,272	101,404	459,788	12,215,543
(1)      All figures are rounded to reflect the accuracy of the estimate. This reserve statement reflects changes to reserves in the 1807 and 1806 zones based on i) 1807 Zone depletion due to mining, ii) 1807 Zone additions due to new exploration drilling results, and iii) 1806 Zone depletion due to mining. The NSR of the 1807 zone reserve material was calculated using all-in costs of $146.86/tonne of ore milled, and forecast metal prices of US$3.15 per pound copper and US$1294 per ounce gold, and US$19.13 per ounce silver. The US/CAN FX rate is 1:1. The calculated reserve cut off grade (in copper equivalent terms) is 2.33 per cent copper. (2)      As this reserve estimate remains unchanged from the previous release on 27 January 2014 all pricing and estimates are reflective of the 2014 fiscal budget.

Table 5: Mineral Resource Estimate for the Ming Copper-Gold Mine - 2 December 2014 ⁽¹⁾

Resource Classification	Cutoff	Quantity	Grades				Contained Metal
			Copper	Gold	Silver	Zinc	Copper	Gold	Silver	Zinc
		(000't)	%	g/t	g/t	%	lbs	oz	oz	lbs
Measured
MMS  (1807 Cu)	1.00 % Cu	233	5.40	1.94	15.71	0.76	27,713,518	14,552	117,652	3,912,998
MMS  (Copper)	1.00 % Cu	689	1.89	2.10	9.76	0.46	28,668,492	46,625	216,313	7,004,767
MMS (Gold)	1.25 g/t Au	185	0.40	3.00	14.74	0.60	1,622,623	17,830	87,663	2,258,229
Total MMS Measured		1,107	2.38	2.22	11.84	0.55	58,004,632	79,007	421,628	13,375,994
Total Stringer Sulphides(2)	1.00 % Cu	18,112	1.48	0.11	1.31	0.02	591,522,172	61,763	761,317	8,174,202
Combined Measured Total		19,219	1.53	0.23	1.91	0.05	649,526,804	140,770	1,182,945	21,550,196
Indicated
MMS (1807 Cu)	1.00 % Cu	35	3.95	2.68	17.34	0.70	3,055,077	3,024	19,577	541,771
MMS  (Copper)	1.00 % Cu	1,257	2.21	2.03	6.06	0.33	61,292,110	81,975	244,918	9,045,461
MMS (Gold)	1.25 g/t Au	65	0.71	2.87	16.01	0.73	1,025,520	6,029	33,650	1,054,510
Total  MMS Indicated		1,358	2.18	2.08	6.83	0.36	65,372,708	91,028	298,145	10,641,742
Total Stringer Sulphides(2)	1.00 % Cu	7,846	1.43	0.10	1.23	0.02	248,070,918	25,905	309,864	2,701,099
Combined Indicated Total		9,204	1.54	0.40	2.05	0.07	313,443,626	142,177	116,932	13,342,841
Measure and Indicated Combined
MMS (1807 Cu)	1.00 % Cu	268	5.21	2.04	15.92	0.75	30,768,595	17,575	137,228	4,454,769
MMS  (Copper)	1.00 % Cu	1,947	2.87	2.72	11.50	0.56	89,960,602	128,600	461,230	16,050,228
MMS (Gold)	1.25 g/t Au	250	0.48	2.96	15.07	0.64	2,648,143	23,859	121,314	3,512,719
Total MMS M&I		2,465	2.27	2.15	9.08	0.44	123,377,340	170,035	719,773	24,017,736
Total Stringer Sulphides(2)	1.00 % Cu	25,958	1.47	0.11	1.28	0.02	839,593,090	87,667	1,071,176	10,875,301
Combined M&I Total		28,423	1.54	0.28	1.96	0.06	962,970,430	257,702	1,790,949	34,893,037
Inferred
MMS (1807 Cu)	1.00 % Cu	24	3.54	1.73	9.35	0.57	1,869,775	1,331	7,196	303,188
MMS (Copper)	1.00 % Cu	1,417	1.62	1.79	8.88	0.67	50,570,531	81,312	404,701	20,791,613
MMS (Gold)	1.25 g/t Au	161	0.66	2.63	10.67	0.50	2,360,529	13,610	55,302	1,786,441
Total MMS Inferred		1,602	1.55	1.87	9.07	0.65	54,800,834	96,254	467,199	22,881,241
Total Stringer Sulphides(2)	1.00 % Cu	3,454	1.51	0.12	1.38	0.02	114,997,607	13,866	153,702	1,360,240
Combined Inferred Total		5,094	1.52	0.67	3.80	0.22	170,728,177	110,203	622,393	22,274,785
(1)      Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. All figures are rounded to reflect the accuracy of the estimate.  Cut‐off grades of 1.0 per cent copper for the massive sulphides, 1.25 grams per tonne gold for the 1806 zone and 1.00 per cent copper for the stringer sulphides have been used in the estimate.  Cut‐offs are based on an NSR model and long term metal prices as per the Fiscal 2014 budget of US$3.15 per pound copper and US$1294 per ounce gold, and US$19.13 per ounce silver.  Zinc does not contribute to the revenues.  Resources are inclusive of reserves. (2)      The Lower Footwall Zone ('LFZ') is included in and dominates the Stringer Sulphides.

APPENDIX 2

Table 6: Lower Footwall Zone Mineral Resource Sensitivity Table - 2 December 2014

Sensitivity Table for Measured Resources
	Interval		Quantity	Grades							Contained Metal
	Above			Copper		Gold	Silver		Zinc		Copper		Gold	Silver	Zinc
	Cu %		(000' t)	%		g/t	g/t		%		lbs		oz	oz	lbs
	0.25		45,298	0.98		0.09	0.99		0.02		980,746,638		129,102	1,439,055	21,204,745
	0.50		38,268	1.09		0.09	1.06		0.02		920,463,541		113,733	1,302,097	17,950,388
	0.75		27,627	1.27		0.10	1.18		0.02		773,602,881		88,073	1,045,837	12,789,151
	1.00		18,112	1.48		0.11	1.31		0.02		591,522,172		61,764	761,329	8,174,202
	1.25		11,528	1.69		0.11	1.45		0.02		429,831,846		41,866	535,685	4,981,036
	1.50		6,975	1.90		0.12	1.59		0.02		292,613,800		27,374	357,089	2,973,456
	1.75		3,985	2.12		0.13	1.76		0.02		186,072,743		16,990	225,750	1,720,808
	2.00		2,050	2.36		0.14	1.93		0.02		106,625,745		9,465	126,989	910,559
	2.25		1,029	2.60		0.15	2.08		0.02		58,914,298		4,933	68,934	482,755
	2.50		521	2.82		0.15	2.21		0.02		32,350,181		2,581	36,955	258,774
	3.00		111	3.29		0.15	2.42		0.02		8,027,702		551	8,619	50,837
Sensitivity Table for Indicated Resources
	Interval		Quantity	Grades							Contained Metal
	Above			Copper		Gold	Silver		Zinc		Copper		Gold	Silver	Zinc
	Cu %		(000' t)	%		g/t	g/t		%		lbs		oz	oz	lbs
	0.25		23,324	0.91		0.09	0.96		0.02		470,350,989		64,386	720,574	8,040,391
	0.50		19,364	1.02		0.09	1.03		0.02		436,823,878		55,473	640,101	6,643,428
	0.75		13,309	1.20		0.09	1.13		0.02		352,721,715		40,482	481,627	4,507,500
	1.00		7,846	1.43		0.10	1.23		0.02		248,070,918		25,905	309,864	2,701,099
	1.25		4,497	1.67		0.11	1.33		0.02		165,602,804		15,784	192,179	1,593,649
	1.50		2,451	1.93		0.12	1.46		0.02		104,042,224		9,207	115,029	872,060
	1.75		1,395	2.16		0.12	1.62		0.02		66,532,919		5,404	72,754	499,528
	2.00		810	2.38		0.12	1.76		0.02		42,457,617		3,221	45,904	293,095
	2.25		405	2.64		0.12	1.84		0.02		23,586,661		1,617	23,937	159,004
	2.50		249	2.82		0.13	2.15		0.02		15,497,571		1,057	17,172	100,637
	3.00		51	3.32		0.12	2.27		0.02		3,747,470		200	3,731	20,786
Sensitivity Table for Inferred Resources
	Interval		Quantity	Grades   Grades       Grades							Contained Metal       Contained metal Contained M
	Above			Copper		Gold	Silver		Zinc		Copper		Gold	Silver	Zinc
	Cu %		(000' t)	%		g/t	g/t		%		lbs		oz	oz	lbs
	0.25		15,011	0.79		0.08	0.81		0.01		262,328,603		37,523	389,611	4,132,832
	0.50		12,339	0.88		0.08	0.86		0.01		238,354,620		31,595	339,873	3,425,982
	0.75		6,773	1.10		0.10	1.04		0.01		163,742,331		20,857	226,586	1,953,371
	1.00		3,090	1.37		0.11	1.23		0.01		93,013,863		11,265	122,372	978,926
	1.25		1,880	1.52		0.13	1.25		0.01		63,077,844		7,688	75,332	605,725
	1.50		697	1.85		0.15	1.72		0.02		28,387,457		3,390	38,548	240,564
	1.75		370	2.05		0.17	2.04		0.01		16,756,214		1,981	24,278	103,556
	2.00		150	2.41		0.20	2.15		0.01		7,967,816		962	10,392	45,322
	2.25		70	2.79		0.22	2.41		0.01		4,306,041		498	5,436	22,359
	2.50		67	2.81		0.23	2.46		0.01		4,133,321		490	5,279	20,581
	3.00		4	3.25		0.09	1.02		0.04		313,585		13	143	3,668

Table 7: Lower Footwall Zone Mineral Resource Sensitivity Table - Per Cent Change to Previous Estimate ⁽¹⁾ 

Per Cent Change for Measured Resources
	Interval		Quantity	Grades							Contained Metal
	Above			Copper		Gold	Silver		Zinc		Copper		Gold	Silver	Zinc
	Cu %		(000' t)	%		g/t	g/t		%		lbs		oz	oz	lbs
	0.25		-22%	19%		34%	13%		50%		-8%		4%	-12%	17%
	0.50		-11%	11%		28%	7%		45%		-1%		14%	-5%	29%
	0.75		0%	7%		26%	2%		43%		7%		26%	2%	43%
	1.00		13%	5%		26%	-3%		48%		19%		42%	11%	68%
	1.25		33%	1%		27%	-6%		49%		35%		69%	25%	99%
	1.50		33%	2%		34%	-5%		48%		35%		79%	26%	97%
	1.75		34%	3%		42%	-3%		46%		38%		91%	30%	96%
	2.00		44%	3%		47%	-5%		45%		49%		112%	38%	109%
	2.25		71%	4%		41%	-5%		54%		77%		140%	62%	163%
	2.50		148%	1%		25%	-10%		71%		151%		209%	123%	325%
	3.00		255%	-2%		8%	-19%		26%		246%		284%	188%	345%
Per Cent Change for Indicated Resources
	Interval		Quantity	Grades							Contained Metal
	Above			Copper		Gold	Silver		Zinc		Copper		Gold	Silver	Zinc
	Cu %		(000' t)	%		g/t	g/t		%		lbs		oz	oz	lbs
	0.25		178%	22%		14%	15%		29%		239%		217%	220%	258%
	0.50		238%	11%		5%	9%		21%		276%		255%	268%	308%
	0.75		275%	9%		2%	7%		32%		309%		284%	300%	396%
	1.00		311%	10%		7%	4%		45%		352%		340%	329%	496%
	1.25		443%	7%		24%	-2%		37%		482%		574%	433%	646%
	1.50		543%	7%		45%	1%		30%		586%		832%	549%	738%
	1.75		706%	6%		52%	2%		26%		757%		1124%	723%	917%
	2.00		858%	7%		59%	8%		26%		927%		1423%	935%	1103%
	2.25		1142%	10%		64%	5%		74%		1267%		1937%	1203%	2063%
	2.50		3995%	10%		89%	25%		88%		4420%		7621%	5031%	7594%
	3.00
Per Cent Change for Measured and Indicated Resources Combined
	Interval		Quantity	Grades   Grades       Grades							Contained Metal       Contained metal Contained M
	Above			Copper		Gold	Silver		Zinc		Copper		Gold	Silver	Zinc
	Cu %		(000' t)	%		g/t	g/t		%		lbs		oz	oz	lbs
	0.25		3%	18%		30%	12%		39%		21%		34%	16%	43%
	0.50		18%	10%		24%	6%		34%		30%		47%	26%	58%
	0.75		31%	6%		22%	2%		34%		39%		60%	34%	76%
	1.00		45%	5%		23%	-3%		41%		52%		78%	41%	105%
	1.25		69%	2%		26%	-7%		43%		72%		112%	57%	142%
	1.50		67%	2%		34%	-6%		42%		71%		124%	57%	138%
	1.75		71%	3%		40%	-5%		40%		77%		140%	63%	140%
	2.00		90%	4%		43%	-6%		38%		97%		172%	79%	161%
	2.25		125%	5%		36%	-7%		49%		136%		207%	109%	236%
	2.50		256%	2%		20%	-10%		62%		262%		328%	221%	477%
	3.00		418%	-2%		1%	-20%		21%		408%		424%	313%	527%

(1)      Table comparing per cent change of current Lower Footwall Zone mineral resource estimate to previous estimate released on 27 January 2014.

APPENDIX 3 - Glossary of Select Geological and Mining Terms

Term	Definition
''Au''	gold
"Ag"	silver
''base metal''	generally non-ferrous, non-precious metal, including copper, lead and zinc
''concentrate''	in general, the saleable product resulting from crushing and grinding of mined ore in a processing plant along with concentration to remove impurities. Base metal operations can produce copper, lead and/or zinc concentrates
''Cu''	copper
''cut-off''	lowest grade of mineralised material considered economic, used in the calculation of ore reserves. Also used in reserve estimation, meaning all material higher than the given grade
''down plunge''	the direction within a rock mass indicated by linear features such as mineral lineation, fold axes or direction of maximum strain caused by deformation
''drift''	a horizontal (or nearly horizontal) passageway in a mine
''Footwall Zone'' or ''LFZ''	a mineralised zone beneath a geological feature such as a fault, another mineralised zone or bed
''grade''	relative quantity or the percentage of ore mineral or metal content in an ore body
''Indicated  Mineral  Resource''	that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed
''massive sulphide''	occurrence of a concentrated mass of sulfide mineral such as pyrite, sphalerite or chalcopyrite in one place, as opposed to their being disseminated or occurring in vein
''measured mineral resource''	that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity
''Mineral resource''	a concentration or occurrence of material of intrinsic  economic interest in  or on the Earth's crust  in  such form that  there are reasonable prospects for eventual economic extraction. Mineral resources are sub-divided, in order of increasing confidence, into Inferred, Indicated and Measured categories
''mineralised''	containing or impregnated with minerals
''National Instrument 43-101''	provides standards of disclosure for mineral projects in Canada. It is a legal requirement in Canada for all oral and written disclosure of scientific or technical information on mineral deposits
''net smelter return''	the value or estimated value resulting from the sale of a concentrate or other mineral or metal product, net of all costs for mining, processing, smelting, refining, sales and the like
''ore''	rock that can be mined and processed at a profit
''orebody''	mining term to define a solid mass of mineralised rock which can be mined profitably under current or immediately foreseeable economic conditions
''oz''	troy ounce (=31.103 grammes)
''Probable mineral reserves''	measured and/or indicated mineral resources which are not yet proven, but where technical economic studies show that extraction is justifiable at the time of the determination and under specific economic conditions
''Proved mineral reserves''	measured  mineral  resources,  where  technical  economic  studies show that extraction is justifiable at the time of the determination and under specific economic conditions
''reserve''	that part of a resource that can be mined at a profit under reasonably expected economic conditions
''resource''	mineralised body for which there is sufficient sampling information and geological understanding to outline a deposit of potential economic merit
''strike length''	the  longest  horizontal  dimension  of  an  ore body  or  zone  of mineralization
''stringer''	a thin, discontinuous mineral vein or rock layer
''sulphide''	a mineral containing sulphur in its non-oxidised form
''t''	a metric tonne
''VMS''	Volcanogenic Massive Sulphide, a recognised type of base metal ore deposit derived from submarine hydrothermal vent sediments
''volcanic''	igneous rock produced by eruption and solidified on or near the earth's surface; rhyolite or andesite or basalt
''Zn''	zinc

 

END

 

 

DRLLLFEEFVLLIIS