Volcan Reserves and Resources

Mineral Reserves

As of January 31, 2011, initial Proven and Probable Mineral Reserves for the Dorado deposits of the Volcan project are 6.6 million ounces of gold at an average grade of 0.726 grams per tonne gold (“g/t Au”) contained in 283 million tonnes of ore.

Mineral Reserve Category Tonnes (Million) Grade (g/t Au) Gold (Thoudand Ounces)
  1. All quantities are rounded to the appropriate number of significant figures, consequently sums may not add due to rounding.
  2. The estimate of mineral reserves may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.
  3. The Volcan mineral reserve estimate is effective as of January 31, 2011.
Proven 102.2 0.748 2,458
Probable 180.4 0.713 4,135
Total 282.6 0.726 6,596

Global Dorado Sector Mineral Resources

As of September 16, 2010, the updated resource for the Dorado deposits estimated measured and indicated mineral resources of 389.7 million tonnes at an average grade of 0.71 g/t Au for 8.9 million ounces of contained gold and inferred resources of 41.6 million tonnes at an average grade of 0.50 g/t Au for 671,000 ounces of contained gold. Both estimates are at a cut-off grade of approximately 0.3 g/t Au.

The 2010 Resource includes the Dorado area deposits (West, Central and East) but excludes the Ojo de Agua area. The Ojo de Agua area hosts an inferred resource of 18.6 million tonnes grading 0.85 g/t Au for total contained gold content of 510,000 ounces at a cut-off grade of 0.5 g/t (see October 6, 2008 press release). The Ojo de Agua East ("ODAE") area discovery is not included in the resource and is the subject of ongoing exploration.

2010 Global Mineral Resource Estimate for the Volcan Gold Project (Dorado deposits)

Classification Total In-Pit Resource
Tonnes Gold Grade (g/t Au) Gold Ounces
Contained Recovered
  1. All quantities are rounded to the appropriate number of significant figures, consequently sums may not add due to rounding.
  2. Mineral resources include mill incremental material.
  3. Mineral resources which are not mineral reserves do not have demonstrated economic viability.
  4. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.
  5. The quantity and grade of reported Inferred Resources in this estimation are conceptual in nature and there has been insufficient exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource. It is uncertain if further exploration will result in the upgrading of the Inferred Resources into an Indicated or Measured Mineral Resource category.
  6. The Volcan mineral resource estimate is effective as of September 16, 2010.
Measured 105,918,000 0.738 2,511,000 1,635,700
Indicated 283,763,000 0.698 6,367,000 4,127,100
Measured Plus Indicated 389,681,000 0.709 8,878,000 5,762,800
Inferred 41,553,000 0.502 671,000 382,600

In addition to the Dorado deposits, the Ojo de Agua area hosts an inferred resource of 18.6 million tonnes grading 0.85 g/t Au for total contained gold content of 510,000 ounces at a cut-off grade of 0.5 g/t (October 2008) at the Andrea and Florencia zones while drilling continues to define a resource at Ojo de Agua East.

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