43-101 2007 Technical Report On The San Antonio Project, Baja ...
43-101 2007 Technical Report On The San Antonio Project, Baja ...
43-101 2007 Technical Report On The San Antonio Project, Baja ...
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Derry, Michener, Booth & Wahl Consultants Ltd. Page 62DMBW examined gold prices published each six months by Kitco (www.kitco.com) asource used by engineers. From January 2004 to January 2008 the average six-monthprice rose from $425 to 850/oz (London Fix PM). <strong>The</strong> three year rolling (cumulativeaverage) gold prices/oz for 2005, 2006, and <strong>2007</strong> were: $444.74, $603.46 and $695.39/ozrespectively. <strong>The</strong> five year chart from May 2003 to May 2008 showed a shoulder at$650/oz from May 2006 to May <strong>2007</strong>. From the above, a future longer term gold price inthe range of $600 to $650/oz seems to be a reasonable assumption as at December 31,<strong>2007</strong>.<strong>The</strong> above-noted gold price trends have been considered by DMBW in their selection ofthis average cut-off grade of 0.36g/t Au, which has been marginally increased to 0.40g/tAu for the estimation of the Planes Inferred Mineral Resources.Table 18.1 Cut-off Grades of Selected Open Pit Heap-leachable gold depositsNote – resources include measured + indicated + inferredDeposit or Mine and CompanyEl ChanateCapital Gold CorporationCerro <strong>San</strong> PedroMetallicaLluvia de OroColumbia MetalsMesquiteWestern GoldfieldsParedones AmarilloVista GoldOcampoGammon GoldMulatosAlamos GoldReserves + ResourcesMMTEngineer / year39 Reserve46 ResourceIMC / <strong>2007</strong>84.0 -2004CompanyMD&A / <strong>2007</strong>12.08Giroux / 2006156.0 oxide45.9 sulphideIMC / 200649 Reserve61 ResourceMDA / <strong>2007</strong>29.1 M+I resource23.7 I resource2004Company31.9 Reserve37.3 ResourceM3/IMC / 2004GradeAu g/t0.660.710.930.375Au eq.Cut offg/t+$/oz0.3$6500.2$600Ag100.71 0.10.51.0$5500.62 0.2 ox0.4s.$5001.011.020.30Au.13Ag1.8Au, 93 Ag1.652.150.380.50$5500.3$3750.42$350AVERAGE 0.360.5