Volcan Resource Disclosure
The Volcan property has been the subject of a number of independent Technical Reports prepared since 2004.
The most recent of these, titled “Technical Report on the Results of the Pre-Feasibility Study on the Dorado Deposits, Volcan Gold Project Region 111 Chile”, by William Lewis et al., dated January 31, 2011 (Lewis et al., 2011), presents the mineral reserve estimate for the Dorado deposits. This report was filed on the System for Electronic Document Analysis and Retrieval (SEDAR) on February 11, 2011.
The Qualified Persons employed by Micon who prepared the January 31, 2011 NI 43-101 Technical Report are:
- William J. Lewis, B.Sc., P.Geo., Senior Geologist.
- Ing. Alan J. San Martin, MAusIMM, Mineral Resource Modeller.
- Richard Gowans, P.Eng., President and Principal Metallurgist.
- Sam Shoemaker, B.Sc., MAusIMM, Senior Mining Engineer.
The most recent resource estimate, titled “Technical Report and Updated Mineral Resource Estimate for the Dorado Gold Deposits, Volcan Gold Project, Region III, Chile”, by William Lewis et al., dated October 15, 2010 (Lewis et al., 2010), presents the mineral resource estimate for the Dorado deposits. This report was filed on the System for Electronic Document Analysis and Retrieval (SEDAR) on October 29, 2010.
The 2010 resource estimate total does not incorporate the Ojo de Agua inferred resource from the October 2008 Resource Estimate for the Ojo de Agua area certified by Mr. Michael Easdon, as no material changes had occurred with respect to this deposit. Details on the Ojo de Agua resource estimate can be found in Andina’s October 6, 2008 press release filed at www.sedar.com. Mr. Easdon is a professional geologist registered with the State of Oregon, USA and will remain the Qualified Person for the Ojo de Agua inferred resource.
The CIM Definition Standards defines a mineral reserve as “the economically mineable part of a measured or indicated mineral resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. A mineral reserve includes diluting materials and allowances for losses that may occur when the material is mined.
A ‘probable mineral reserve’ is the economically mineable part of an indicated and, in some circumstances, a measured mineral resource demonstrated by at least a preliminary feasibility study. A ‘proven mineral reserve’ is the economically mineable part of a measured mineral resource demonstrated by at least a preliminary feasibility study”.
A ‘measured mineral resource’ and an ‘indicated mineral resource’ is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The ‘measured mineral resource’ requires a higher level of confidence in, and understanding of, the geology and controls of the mineral deposit as compared to an ‘indicated mineral resource’. An ‘inferred mineral resource’ is that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity.
It cannot be assumed that the inferred mineral resources will be upgraded to an indicated mineral resource as a result of continued exploration. Furthermore, it cannot be assured that measured and indicated or inferred mineral resources will be converted to a reserve” category at such time as feasibility studies are initiated.