43-101 2008 Technical Report On The La Fortuna Project, Durango ...
43-101 2008 Technical Report On The La Fortuna Project, Durango ...
43-101 2008 Technical Report On The La Fortuna Project, Durango ...
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Undiluted Reserves at $700 per Ounce Gold<br />
Overburden Tonnes 23,700,000<br />
Oxide Below 0.15 g/tonne* 19,600,000<br />
Subtotal, Waste Rock <strong>43</strong>,300,000<br />
In-Pit Proven and Probable Reserves<br />
In-Pit Inferred Resources<br />
Cut-off Tonnes Average Cut-off Tonnes Average<br />
Grade Above Grade Grade Above Grade<br />
(g/tonne) Cut-off (g/tonne) Ounces (g/tonne) Cut-off (g/tonne) Ounces<br />
0.15 58,400,000 0.46 870,000 0.15 131,000 0.30 1,300<br />
* This material must be mined but does not meet the processing cut-off.<br />
14.2.6 Mine Plan and Schedule<br />
Mine plans and a mining schedule were developed for the $625 per ounce scenario (see Appendix A). A<br />
bias was introduced into the optimization process that outlined incremental pits within the $625 pit that<br />
could be mined at higher average grades. This resulted in higher grades being mined during the early<br />
years to repay capital costs, with progressively lower grades being mined in later years. While Howe has<br />
developed an optimized production schedule to show the potential of long term mine planning, Howe has<br />
used the average grade in developing the Castle Gold mine cash flow forecasts.<br />
<strong>The</strong> overall mine life based at a US$625/oz Au price is eleven years. Ore production ramps up to<br />
5,000,000 tonnes per year (diluted) by Year 3. Also in Year 3, recovered gold production is at its peak at<br />
52,000 ounces) and overburden (waste rock and below-cut-off-oxide) stripping reaches 3,100,000 tonnes<br />
per year.<br />
Level sections showing the resource model and the optimum pit outlines at Year 4, Year 7, Year 9 and<br />
Year 11 (end of mine life) are included in Appendix A<br />
14.2.7 Comparison between Howe 2003 and Howe <strong>2008</strong> Reserve Estimates<br />
Table 13 is a summary table comparing the results between the proven and probable reserve estimates<br />
obtained from the Howe 2003 and Howe <strong>2008</strong> reserve estimates based on various gold prices.<br />
46