Minimum Report Contents for Engineering Studies

DESCRIPTION
INTRODUCTION Location, Topography and Climate Site Location Map Topography Map Basic map Basic map showing site topography Preliminary map showing claims and Detailed map showing all claims and boundaries boundaries Preliminary map topographic features showing site Detailed topographic map; aerial surveys verified with ground controls and surveys

Conceptual (Scoping Study)

Prefeasibility Study

Feasibility Study

Property Ownership Current Status and History Historical Chronology Past Production (if any) EXPLORATION AND GEOLOGY Geologic Description Review Data Posting

Review of property lease

Property lease and rights secured and Review of property lease; claims list controlled; claims list and map provided; provided; mineral rights known mineral rights secured Full presentation Full presentation Detailed presentation Detailed presentation

Basic presentation Basic presentation

Preliminary review Review of available existing maps

Preliminary site-specific analysis

Geologic Assessment

Preliminary

Detailed site-specific analysis Deposit well-defined with three Detailed geologic mapping with crossdimensional mapping, geologic maps, sections long sections, level plans Detailed assessment of structures/rock Basic assessment and review contacts, alteration, mineralization, deposit trends Preliminary mineralogical sampling and Detailed mineralogical sampling and analysis; preliminary mineralogic study mapping; detailed mineralogical study Close spaced drilling on a detailed grid Initial in-fills of wide spaced drilling; pattern to support calculated reserve preliminary grid patterns categories Drilling if accessible Detailed drilling if accessible Geophysical and geotechnical sampling; All sampling programs complete test pits Check of drill holes (coordinates, elevations, angles, etc.), check assays, angled hole vs vertical hole etc.), check assays, angled hole vs vertical hole comparison, twin hole drilling; assay flow diagram; validated database

Mineralogical Sampling & Analysis Drilling, Sampling and Assaying Drill Hole Parameters Underground Drilling Samples

Limited sampling; preliminary assessment

Wide spaced drilling as appropriate Review of existing data Preliminary; some outcrop samples

Drilling/Assay Data

Check of drill holes (coordinates, elevations, angles, etc.), check assays, Preliminary check of existing drill hole angled hole vs vertical hole comparison; data assay flow diagram, dependable database

Areas under waste dumps, tailings and Condemnation Drilling None None plant drilled RESOURCES AND RESERVES (Internationally Recognized Standards [see note 1]) Resources Indicated and Inferred Measured, Indicated, and Inferred Indicated and Measured Established from geologic data and/or Geologic Controls Assumed Well established from geologic data variograms Tonnage Factors Statistical Analysis Geostatistical Analysis Reserves Calculation Parameters Cutoff Grade (COG) Equations MINING Mining Method Open Pit Mine Plan Pit Slopes Assumed Defined by geotechnical data from Preliminary estimates by rock type and structural mapping and oriented core basic geotechnical data holes Preliminary pit design from optimized Detailed pit designs with phases and analysis; preliminary haulroad access for equipment operation incorporated Dump sites identified from geotechnical Preliminary design for total waste data; final waste tonnages determined tonnage; incremental and final outline of with incremental phases, yearly and final dumps dump outlined Preliminary mining system identified Specific mining system identified from from geologic and geotechnical data geologic and geotechnical data; detailed preliminary outline of mine plan and outline of mine plan and development development including mine access including mine access Detailed annual schedules showing ore / Yearly and mine life ore and waste product quality and waste tonnages and tonnages and grade grades Detailed equipment list; firm price quotes Preliminary equipment list; budget or for all major equipment items; all capital historical price quotes; some factoring items identified Quantified estimates for labor, power and consumables; budget or historical Detailed engineering estimate by project price quotes for unit prices; some area based on quotes and studies factoring Assumed between underground open pit and Specific method identified Method and mine plan finalized Preliminary assessment if available Not performed Not performed Only resources estimated Usually no reserves are estimated Usually no reserves are estimated Preliminary analysis and determinations Preliminary analysis and determinations Preliminary analysis and determinations Proven and Probable Known or estimated Calculated from parameters Detailed analysis and determinations Detailed analysis and determinations Detailed analysis and determinations

floating

Proven and Probable Detailed analysis and determinations cone Optimized using mining/processing parameters

Pit Design

Simple outline of final pit

Waste Dumps

Simple outline of final dumps

Underground Mine Plan

Assumed mining system; general outline of mine plan and development Basic schedule based on assumed mine life Order-of-magnitude, factored or from similar operations Order-of-magnitude; factored or from similar operations

Production Schedule

Capital Cost Estimate

Operating Cost Estimate

PROCESSING Sampling of core; preliminary bench Minimal sampling; conduct lab bench scale testing to determine preliminary scale process characterization tests on recoveries, ore characterization and collected samples (if available) processing parameters for flow sheet development First estimate of production rate and Preliminary mining and processing rates product(s) and plant product(s) General design basis; preliminary Preliminary using factored estimates engineering drawings; trade-off studie optional Outline of design criteria and Design criteria established for specifications incorporating area/regional construction site incorporating known climatic conditions site climatic conditions Narrative; 1 to 2% of detail engineering General complete Optimization of facility locations on site Approximate geographic locations and map showing topography; simple site map; no general arrangement general arrangement drawings of major drawings equipment items Establishment of probable flow sheet from preliminary test work data; major Assumed flow sheet from known process flow diagrams; initial processes; simple block diagram determinations of material and heat balances. Sampling of core for different ore body zones; confirm flow sheet; comprehensive beneficiation test program to determine recoveries, ore/product characterization and finalize processing parameters Fixed mining and processing rates and plant product(s) Complete design basis; basic engineering drawings essentially complete; trade-off studies performed Design specifications defined incorporating known site climatic conditions Detailed; 5 to 15% of detail engineering complete Exact geographic locations on site map with topography; detailed general arrangement drawings; detailed layout of all facilities Detailed flow sheet based on comprehensive beneficiation test program, detailed equipment list; diagrams for all process flows; material and heat balances finalized

Ore Sampling and Test Work

Process Engineering and Design Production Rate and Product(s) Design Basis

Design Concept Process Description

Layout

Flow Sheets

Civil Work

Rough topographic maps; no soil Rough topographic maps; soil conditions Detailed togographic maps with soil conditions considered or quantities report for foundation determinations; conditions identified for foundation estimated basic preliminary quantities design, loadings and quantities Major equipment items listed None None None None None Preliminary listing of major equipment items with initial sizings and specifications Sketches Preliminary P&ID Basic one-line diagram General description General description Complete listing of major equipment items with detailed sizings and specifications Exterior elevations only Major P&ID All design one-line diagram Detailed list of major items with horsepower Detailed list of components

Equipment Specifications Architectural Piping/HVAC Electrical Distribution Motors Instrumentation INFRASTRUCTURE

Facilities

Facilities General overview with types of support facilities described All required General overview with types of support All required support facilities identified, support facilities identified, sizes and facilities described sizes and quantities estimated quantities estimated All necessary support facilities identified, sized and costed Communications Communications requirements identified Communications systems study Communications licensing and standards known

Communications

Communications requirements identified

Communications systems study

Power HYDROLOGY Water Sources

Overview of power availability regional unit power costs

and

Power sources and requirements Power requirements and unit costs identified; unit costs obtained from power derived from detailed engineerin study; source unit costs from quotes Water Sources Estimated using regional data Preliminary hydrology study Specific water source identified Requisite plant volumes and unit costs Required plant water volumes and unit derived from detailed costs estimated engineering/geotechnical studies Dewatering parameters confirmed and Dewatering parameters estimated plan defined Preliminary hydrology study Characterization of all the project's potential impacts on the environment; finalize schedule of environmental and/or other permitting requirements; evaluate project setting for potentially significant environmental and/or permitting constraints All requisite environmental data for project are identified; site sampling and analyses are complete; detailed review of the type, scope and schedule for producing environmental and/or government reports; comprehensive gathering and evaluation of baseline environmental conditions; social, raining, and health/safety programs confirmed Draft EIS/EA submitted to regulatory authorities Environmental characteristics used in project design; environmental plans and monitoring programs are finalized; sediment and erosion control plan; management plan finalized for solid and hazardous wastes; finalize impact mitigation plan; geotechnical stability analysis of all major facilities; finalize reclamation plan; final analysis of acid rock drainage; finalize spill and emergency response plan Complete environmental monitoring plan

Estimated using regional data

Water Usage Dewatering ENVIRONMENTAL

Factored plant volume and unit costs Dewatering parameters identified

Setting

Preliminary evaluation of the project's impact on the environment; schedule of Preliminary evaluation of project setting environmental and/or other permitting for potentially significant environmental or requirements; evaluate project setting permitting constraints for site data for potentially significant environmental and/or permitting constraints from site data Collect and review all available, existing data for environmental studies assessments or audits; regulatory inspections, waste handling practices, management plans, and all applicable environmental laws and regulations; no social, training or safety programs identified Collect and review available environmental data from existing databases for environmental studies, assessments or audits; regulatory inspections, waste handling practices; management plans; and all applicable environmental laws and regulations; plans; initiate baseline data gatherin social, training, and health /safety programs identified Draft EIS/EA initiated Preparation of environmental plans and monitoring programs; preliminary sediment and erosion control plan; conceptual reclamation plan; evaluation any of acid rock drainage; geotechnical stability review of waste dumps and tailings dam; preliminary impact mitigation plan; preliminary spill and emergency response plan Outline of a monitoring plan site environmental

Data

EIS/EA

None

Reporting and Plans

Conceptual plans for managing identified environmental issues

Monitoring

Not considered

PERMIT REQUIREMENTS

General overview

Detailed evaluation of all pertinent Comprehensive overview and listing of environmental and permitting required permits requirements and schedule for obtaining operating license

PROJECT DEVELOPMENT SCHEDULE Development Plan Development estimated period and mine life Development period and overall Detailed development schedule; mine life schedule estimated; mine life known; development schedule finalized determined development schedule set Gantt bar chart with overall time frames and project flow planning; detailed project level schedule showing project deliverables and detailed engineering; CP schedule; major milestones identified; project control system outlined; QA/QC and safety program finalized; preliminary project procedures manual; project design basis finalized

Project Master Schedule

Gantt bar chart with overall time frames; Estimated showing start and end of schedule outline for detailed engineering; construction; Gantt bar chart of major QA/QC program outlined; preliminary work elements construction schedule; preliminary project execution plan

CAPITAL COST ESTIMATE Basis Civil Structural Architectural Piping/HVAC Electrical Instrumentation Construction Labor Construction Labor Productivity Material Volumes/Amounts Material/Equipment Pricing Infrastructure Contractors EPCM Pricing Owner's Environmental Compliance Escalation Working Capital Accuracy Contingency OPERATING COST ESTIMATE Basis Operating Quantities Unit Costs Accuracy ECONOMIC EVALUATION Financial Analysis Commodity Price(s) Royalties and Taxes Smelting, Refining and Freight Cash Flow Analysis Economic Criteria Sensitivity Analysis RISK EVALUATION Risk Assessment

Estimates from historical factors, Order-of-magnitude based historic data Detailed from estimates; engineering 15 percentages and vendor quotes based or factoring to 25% complete; multiple vendor quotes on materials volumes

Included in unit cost or as a percentage of Percentage of direct cost by cost area Written quotes from total cost for contractor; historic for subcontractors subcontractors Percentage of estimated construction Percentage of detailed construction cost cost FOB mine site including all taxes and FOB mine site including all taxes and duties duties Estimate from experience factored for Historic estimate similar project Factored from historic experience Typically not considered Factored from historic experience +-50% 25% Order-of-Magnitude estimate General Historic unit costs and factoring +/- 35% Preliminary assessment of economic parameters Estimated based on 3yr minimum

contractor and

Calculated estimate from EPC(M) firm

FOB mine site including all taxes and duties Estimate prepared from detail zero based budget Estimate prepared from detail zero Estimate from experience factored for based budget for design engineering and similar project specific permit requirements Based on company's current budget Based by cost area with risk percentage Estimate from experience factored for Estimate prepared from detail zero similar project based budget +/- 25% +/- 15% 15% 10% Estimates for unit rates and quantified estimates with some factoring Quantified by estimates with some factoring Estimates for labor, power and consumables; some factoring +/- 25% Detailed from minimal factoring Detailed estimates Letter quotes from vendors; minimal factoring +/- 15% zero-based budget;

principal Assessment of the principal economic Full assessment of all principal economic parameters parameters average Estimated based on 3yr average Estimated based on 3yr average minimum minimum or detailed market studies Detailed analysis with tax authority Preliminary assessment Preliminary analysis opinion Historic data Budgetary quotes Firm quotes Simple cash flow Preliminary cash flow Formal, detailed cash flow Preliminary IRR and NPV (pre- and after- Fully defined IRR, NPV, ROI, and Simple IRR and NPV (pre- and after-tax) tax) payback period (pre- and after-tax) Basic analysis to minimal amount of Preliminary to selected key project Numerous analysis to all key project project variables variables variables General overview Fatal flaw analysis Formal Monte Carlo analysis and fatal flaw analysis

Project

Preliminary environmental, country, Detailed geology, engineering, Preliminary overview of geology, permitting, technology, and business; environmental, legal, permitting, country, engineering, and environmental detailed geology and engineering technology, business, and financial

Note 1: Internationally Recognized Standards include: 1. Canadian National Instrument 43-101 and 43-101 CP. 2. Australiasian Code for Reporting of Mineral Resources and Ore Reserves - prepared by the Joint Ore Reserve Committed (JORC) 3. U.S. Securities & Exchange Commission Industry Guide 7 4. SME Guide for Reporting Exploration Information, Mineral Resources and Mineral Reserves

Minimum Report Contents for Engineering Studies

DESCRIPTION
INTRODUCTION Location, Topography and Climate Site Location Map Topography Map Property Ownership Current Status and History Historical Chronology Past Production (if any) EXPLORATION AND GEOLOGY Geologic Description Review Data Posting Geologic Assessment Mineralogical Sampling & Analysis Drilling, Sampling and Assaying Drill Hole Parameters Underground Drilling Samples Drilling/Assay Data

Conceptual (Scoping Study)

Basic map Basic map showing site topography Review of property lease Basic presentation Basic presentation

Prefeasibility Study
Preliminary map showing claims and boundaries Preliminary map showing site topographic features Review of property lease; claims list provided; mineral rights known Full presentation Full presentation

Feasibility Study
Detailed map showing all claims and boundaries Detailed topographic map; aerial surveys verified with ground controls and surveys Property lease and rights secured and controlled; claims list and map provided; mineral rights secured Detailed presentation Detailed presentation

Preliminary review Review of available existing maps Preliminary Limited sampling; preliminary assessment Wide spaced drilling as appropriate Review of existing data Preliminary; some outcrop samples Preliminary check of existing drill hole data

Preliminary site-specific analysis Detailed geologic mapping with cross-sections Basic assessment and review Preliminary mineralogical sampling and analysis; preliminary mineralogic study Initial in-fills of wide spaced drilling; preliminary grid patterns Drilling if accessible Geophysical and geotechnical sampling; test pits

Detailed site-specific analysis Deposit well-defined with three dimensional mapping, geologic maps, long sections, level plans Detailed assessment of structures/rock contacts, alteration, mineralization, deposit trends Detailed mineralogical sampling and mapping; detailed mineralogical study

Condemnation Drilling None RESOURCES AND RESERVES (Internationally Recognized Standards [see note 1]) Indicated and Inferred Resources Geologic Controls Assumed Tonnage Factors Preliminary assessment if available Statistical Analysis Not performed Geostatistical Analysis Not performed Only resources estimated Reserves Calculation Parameters Usually no reserves are estimated Cutoff Grade (COG) Equations Usually no reserves are estimated MINING Assumed between open pit and underground Mining Method Open Pit Mine Plan Assumed Pit Slopes Simple outline of final pit Pit Design Waste Dumps Underground Mine Plan Production Schedule Capital Cost Estimate Operating Cost Estimate PROCESSING Ore Sampling and Test Work Process Engineering and Design Production Rate and Product(s) Design Basis Design Concept Process Description Layout Flow Sheets Civil Work Equipment Specifications Architectural Piping/HVAC Electrical Distribution Motors Instrumentation INFRASTRUCTURE Facilities Communications Power HYDROLOGY Water Sources Water Usage Dewatering ENVIRONMENTAL Setting Estimated using regional data Factored plant volume and unit costs Dewatering parameters identified Simple outline of final dumps Assumed mining system; general outline of mine plan and development Basic schedule based on assumed mine life Order-of-magnitude, factored or from similar operations Order-of-magnitude; factored or from similar operations

Close spaced drilling on a detailed grid pattern to support calculated reserve categories Detailed drilling if accessible All sampling programs complete Check of drill holes (coordinates, elevations, angles, etc.), check assays, angled hole Check of drill holes (coordinates, elevations, angles, etc.), check assays, angled hole vs vertical hole etc.), check assays, angled hole vs vertical hole comparison, twin hole vs vertical hole comparison; assay flow diagram, dependable database drilling; assay flow diagram; validated database None Areas under waste dumps, tailings and plant drilled Measured, Indicated, and Inferred Established from geologic data and/or variograms Preliminary analysis and determinations Preliminary analysis and determinations Preliminary analysis and determinations Proven and Probable Known or estimated Calculated from floating cone parameters Specific method identified Preliminary estimates by rock type and basic geotechnical data Preliminary pit design from optimized analysis; preliminary haulroad incorporated Indicated and Measured Well established from geologic data Detailed analysis and determinations Detailed analysis and determinations Detailed analysis and determinations Proven and Probable Detailed analysis and determinations Optimized using mining/processing parameters Method and mine plan finalized

Defined by geotechnical data from structural mapping and oriented core holes Detailed pit designs with phases and access for equipment operation Dump sites identified from geotechnical data; final waste tonnages determined with Preliminary design for total waste tonnage; incremental and final outline of dumps incremental phases, yearly and final dump outlined Preliminary mining system identified from geologic and geotechnical data preliminary Specific mining system identified from geologic and geotechnical data; detailed outline outline of mine plan and development including mine access of mine plan and development including mine access Detailed annual schedules showing ore / product quality and waste tonnages and Yearly and mine life ore and waste tonnages and grade grades Detailed equipment list; firm price quotes for all major equipment items; all capital Preliminary equipment list; budget or historical price quotes; some factoring items identified Quantified estimates for labor, power and consumables; budget or historical price Detailed engineering estimate by project area based on quotes and studies quotes for unit prices; some factoring

Sampling of core for different ore body zones; confirm flow sheet; comprehensive Minimal sampling; conduct lab bench scale process characterization tests on collected Sampling of core; preliminary bench scale testing to determine preliminary recoveries, beneficiation test program to determine recoveries, ore/product characterization and samples (if available) ore characterization and processing parameters for flow sheet development finalize processing parameters First estimate of production rate and product(s) Preliminary using factored estimates Preliminary mining and processing rates and plant product(s) General design basis; preliminary engineering drawings; trade-off studie optional Fixed mining and processing rates and plant product(s) Complete design basis; basic engineering drawings essentially complete; trade-off studies performed

Outline of design criteria and specifications incorporating area/regional climatic Design criteria established for construction site incorporating known site climatic Design specifications defined incorporating known site climatic conditions conditions conditions General Narrative; 1 to 2% of detail engineering complete Detailed; 5 to 15% of detail engineering complete Optimization of facility locations on site map showing topography; simple general Exact geographic locations on site map with topography; detailed general arrangement Approximate geographic locations and site map; no general arrangement drawings arrangement drawings of major equipment items drawings; detailed layout of all facilities Assumed flow sheet from known processes; simple block diagram Rough topographic maps; no soil conditions considered or quantities estimated Major equipment items listed None None None None None Establishment of probable flow sheet from preliminary test work data; major process Detailed flow sheet based on comprehensive beneficiation test program, detailed flow diagrams; initial determinations of material and heat balances. equipment list; diagrams for all process flows; material and heat balances finalized Rough topographic maps; soil conditions report for foundation determinations; basic Detailed togographic maps with soil conditions identified for foundation design, preliminary quantities loadings and quantities Preliminary listing of major equipment items with initial sizings and specifications Complete listing of major equipment items with detailed sizings and specifications Sketches Exterior elevations only Preliminary P&ID Major P&ID Basic one-line diagram All design one-line diagram General description Detailed list of major items with horsepower General description Detailed list of components Facilities General overview with types of support facilities described All required support facilities identified, sizes and quantities estimated All necessary support facilities identified, sized and costed Communications Communications requirements identified Communications systems study Communications licensing and standards known Power requirements and unit costs derived from detailed engineerin study; unit costs from quotes Water Sources Estimated using regional data Preliminary hydrology study Specific water source identified Requisite plant volumes and unit costs derived from detailed engineering/geotechnical studies Dewatering parameters confirmed and plan defined

General overview with types of support facilities described Communications requirements identified Overview of power availability and regional unit power costs

All required support facilities identified, sizes and quantities estimated Communications systems study Power sources and requirements identified; unit costs obtained from power source

Preliminary hydrology study Required plant water volumes and unit costs estimated Dewatering parameters estimated

Preliminary evaluation of the project's impact on the environment; schedule of Characterization of all the project's potential impacts on the environment; finalize Preliminary evaluation of project setting for potentially significant environmental or environmental and/or other permitting requirements; evaluate project setting for schedule of environmental and/or other permitting requirements; evaluate project permitting constraints for site data potentially significant environmental and/or permitting constraints from site data setting for potentially significant environmental and/or permitting constraints Collect and review available environmental data from existing databases for Collect and review all available, existing data for environmental studies assessments or environmental studies, assessments or audits; regulatory inspections, audits; regulatory inspections, waste handling practices, management plans, and all waste handling practices; management plans; and all applicable environmental laws applicable environmental laws and regulations; no social, training or safety programs and regulations; plans; initiate baseline data gatherin social, training, and health /safety identified programs identified None Draft EIS/EA initiated All requisite environmental data for project are identified; site sampling and analyses are complete; detailed review of the type, scope and schedule for producing environmental and/or government reports; comprehensive gathering and evaluation of baseline environmental conditions; social, raining, and health/safety programs confirmed Draft EIS/EA submitted to regulatory authorities

Data

EIS/EA

Reporting and Plans

Conceptual plans for managing any identified environmental issues

Environmental characteristics used in project design; environmental plans and Preparation of environmental plans and monitoring programs; preliminary sediment monitoring programs are finalized; sediment and erosion control plan; management and erosion control plan; conceptual reclamation plan; evaluation of acid rock plan finalized for solid and hazardous wastes; finalize impact mitigation plan; drainage; geotechnical stability review of waste dumps and tailings dam; preliminary geotechnical stability analysis of all major facilities; finalize reclamation plan; final impact mitigation plan; preliminary spill and emergency response plan analysis of acid rock drainage; finalize spill and emergency response plan Outline of a site environmental monitoring plan Comprehensive overview and listing of required permits Development period and overall development schedule set schedule estimated; mine life determined Complete environmental monitoring plan Detailed evaluation of all pertinent environmental and permitting requirements and schedule for obtaining operating license Detailed development schedule; mine life known; development schedule finalized

Monitoring PERMIT REQUIREMENTS PROJECT DEVELOPMENT SCHEDULE Development Plan

Not considered General overview

Development period and mine life estimated

Project Master Schedule

Gantt bar chart with overall time frames and project flow planning; detailed project Gantt bar chart with overall time frames; schedule outline for detailed engineering; level schedule showing project deliverables and detailed engineering; CP schedule; Estimated showing start and end of construction; Gantt bar chart of major work QA/QC program outlined; preliminary construction schedule; preliminary project major milestones identified; project control system outlined; QA/QC and safety elements execution plan program finalized; preliminary project procedures manual; project design basis finalized

CAPITAL COST ESTIMATE Basis Civil Structural Architectural Piping/HVAC Electrical Instrumentation Construction Labor Construction Labor Productivity Material Volumes/Amounts Material/Equipment Pricing Infrastructure Contractors EPCM Pricing Owner's Environmental Compliance Escalation Working Capital Accuracy Contingency OPERATING COST ESTIMATE Basis Operating Quantities Unit Costs Accuracy ECONOMIC EVALUATION Financial Analysis Commodity Price(s) Royalties and Taxes Smelting, Refining and Freight Cash Flow Analysis Economic Criteria Sensitivity Analysis RISK EVALUATION Risk Assessment Project

Order-of-magnitude based historic data or factoring

Estimates from historical factors, percentages and vendor quotes based on materials Detailed from estimates; engineering 15 to 25% complete; multiple vendor quotes volumes

Included in unit cost or as a percentage of total cost Percentage of estimated construction cost FOB mine site including all taxes and duties Historic estimate Factored from historic experience Typically not considered Factored from historic experience +-50% 25% Order-of-Magnitude estimate General Historic unit costs and factoring +/- 35% Preliminary assessment of principal economic parameters Estimated based on 3yr average minimum Preliminary assessment Historic data Simple cash flow Simple IRR and NPV (pre- and after-tax) Basic analysis to minimal amount of project variables General overview Preliminary overview of geology, engineering, and environmental

Percentage of direct cost by cost area for contractor; historic for subcontractors Percentage of detailed construction cost FOB mine site including all taxes and duties Estimate from experience factored for similar project Estimate from experience factored for similar project Based on company's current budget percentage Estimate from experience factored for similar project +/- 25% 15% Estimates for unit rates and quantified estimates with some factoring Quantified by estimates with some factoring Estimates for labor, power and consumables; some factoring +/- 25% Assessment of the principal economic parameters Estimated based on 3yr average minimum Preliminary analysis Budgetary quotes Preliminary cash flow Preliminary IRR and NPV (pre- and after-tax) Preliminary to selected key project variables

Written quotes from contractor and subcontractors Calculated estimate from EPC(M) firm FOB mine site including all taxes and duties Estimate prepared from detail zero based budget Estimate prepared from detail zero based budget for design engineering and specific permit requirements Based by cost area with risk Estimate prepared from detail zero based budget +/- 15% 10% Detailed from zero-based budget; minimal factoring Detailed estimates Letter quotes from vendors; minimal factoring +/- 15% Full assessment of all principal economic parameters Estimated based on 3yr average minimum or detailed market studies Detailed analysis with tax authority opinion Firm quotes Formal, detailed cash flow Fully defined IRR, NPV, ROI, and payback period (pre- and after-tax) Numerous analysis to all key project variables

Fatal flaw analysis Formal Monte Carlo analysis and fatal flaw analysis Preliminary environmental, country, permitting, technology, and business; detailed Detailed geology, engineering, environmental, legal, permitting, country, technology, geology and engineering business, and financial

Note 1: Internationally Recognized Standards include: 1. Canadian National Instrument 43-101 and 43-101 CP. 2. Australiasian Code for Reporting of Mineral Resources and Ore Reserves - prepared by the Joint Ore Reserve Committed (JORC) 3. U.S. Securities & Exchange Commission Industry Guide 7 4. SME Guide for Reporting Exploration Information, Mineral Resources and Mineral Reserves

Minimum Report Contents for Engineering Studies

DESCRIPTION
INTRODUCTION Location, Topography and Climate Site Location Map Topography Map Property Ownership Current Status and History Historical Chronology Past Production (if any) EXPLORATION AND GEOLOGY Geologic Description Review Data Posting Geologic Assessment Mineralogical Sampling & Analysis Drilling, Sampling and Assaying Drill Hole Parameters Underground Drilling Samples Drilling/Assay Data Condemnation Drilling RESOURCES AND RESERVES (Internationally Recognized Standards [see note 1]) Resources Geologic Controls Tonnage Factors Statistical Analysis Geostatistical Analysis Reserves Calculation Parameters Cutoff Grade (COG) Equations MINING Mining Method Open Pit Mine Plan Pit Slopes Pit Design Waste Dumps Underground Mine Plan Production Schedule Capital Cost Estimate Operating Cost Estimate PROCESSING Ore Sampling and Test Work Process Engineering and Design Production Rate and Product(s) Design Basis Design Concept Process Description Layout Flow Sheets Civil Work Equipment Specifications Architectural Piping/HVAC Electrical Distribution Motors Instrumentation INFRASTRUCTURE Facilities Communications Power Sampling of core for different ore body zones; confirm flow sheet; comprehensive Minimal sampling; conduct lab bench scale process characterization tests on collected Sampling of core; preliminary bench scale testing to determine preliminary recoveries, ore beneficiation test program to determine recoveries, ore/product characterization and samples (if available) characterization and processing parameters for flow sheet development finalize processing parameters First estimate of production rate and product(s) Preliminary using factored estimates Outline of design criteria and specifications incorporating area/regional climatic conditions General Approximate geographic locations and site map; no general arrangement drawings Assumed flow sheet from known processes; simple block diagram Rough topographic maps; no soil conditions considered or quantities estimated Major equipment items listed None None None None None Preliminary mining and processing rates and plant product(s) General design basis; preliminary engineering drawings; trade-off studie optional Fixed mining and processing rates and plant product(s) Complete design basis; basic engineering drawings essentially complete; trade-off studies performed

Conceptual (Scoping Study)

Prefeasibility Study

Feasibility Study

Basic map Basic map showing site topography Review of property lease Basic presentation Basic presentation

Preliminary map showing claims and boundaries Preliminary map showing site topographic features Review of property lease; claims list provided; mineral rights known Full presentation Full presentation

Detailed map showing all claims and boundaries Detailed topographic map; aerial surveys verified with ground controls and surveys Property lease and rights secured and controlled; claims list and map provided; mineral rights secured Detailed presentation Detailed presentation

Preliminary review Review of available existing maps Preliminary Limited sampling; preliminary assessment Wide spaced drilling as appropriate Review of existing data Preliminary; some outcrop samples Preliminary check of existing drill hole data None Indicated and Inferred Assumed Preliminary assessment if available Not performed Not performed Only resources estimated Usually no reserves are estimated Usually no reserves are estimated Assumed between open pit and underground Assumed Simple outline of final pit Simple outline of final dumps Assumed mining system; general outline of mine plan and development Basic schedule based on assumed mine life Order-of-magnitude, factored or from similar operations Order-of-magnitude; factored or from similar operations

Preliminary site-specific analysis Detailed geologic mapping with cross-sections Basic assessment and review Preliminary mineralogical sampling and analysis; preliminary mineralogic study Initial in-fills of wide spaced drilling; preliminary grid patterns Drilling if accessible Geophysical and geotechnical sampling; test pits

Detailed site-specific analysis Deposit well-defined with three dimensional mapping, geologic maps, long sections, level plans Detailed assessment of structures/rock contacts, alteration, mineralization, deposit trends Detailed mineralogical sampling and mapping; detailed mineralogical study Close spaced drilling on a detailed grid pattern to support calculated reserve categories

Detailed drilling if accessible All sampling programs complete Check of drill holes (coordinates, elevations, angles, etc.), check assays, angled hole vs Check of drill holes (coordinates, elevations, angles, etc.), check assays, angled hole vs vertical hole etc.), check assays, angled hole vs vertical hole comparison, twin hole vertical hole comparison; assay flow diagram, dependable database drilling; assay flow diagram; validated database None Areas under waste dumps, tailings and plant drilled Measured, Indicated, and Inferred Established from geologic data and/or variograms Preliminary analysis and determinations Preliminary analysis and determinations Preliminary analysis and determinations Proven and Probable Known or estimated Calculated from floating cone parameters Specific method identified Preliminary estimates by rock type and basic geotechnical data Preliminary pit design from optimized analysis; preliminary haulroad incorporated Indicated and Measured Well established from geologic data Detailed analysis and determinations Detailed analysis and determinations Detailed analysis and determinations Proven and Probable Detailed analysis and determinations Optimized using mining/processing parameters Method and mine plan finalized

Defined by geotechnical data from structural mapping and oriented core holes Detailed pit designs with phases and access for equipment operation Dump sites identified from geotechnical data; final waste tonnages determined with incremental phases, yearly and final dump outlined Preliminary mining system identified from geologic and geotechnical data preliminary Specific mining system identified from geologic and geotechnical data; detailed outline of outline of mine plan and development including mine access mine plan and development including mine access Preliminary design for total waste tonnage; incremental and final outline of dumps Yearly and mine life ore and waste tonnages and grade Preliminary equipment list; budget or historical price quotes; some factoring Detailed annual schedules showing ore / product quality and waste tonnages and grades

Detailed equipment list; firm price quotes for all major equipment items; all capital items identified Quantified estimates for labor, power and consumables; budget or historical price quotes Detailed engineering estimate by project area based on quotes and studies for unit prices; some factoring

Design criteria established for construction site incorporating known site climatic Design specifications defined incorporating known site climatic conditions conditions Narrative; 1 to 2% of detail engineering complete Detailed; 5 to 15% of detail engineering complete Optimization of facility locations on site map showing topography; simple general Exact geographic locations on site map with topography; detailed general arrangement arrangement drawings of major equipment items drawings; detailed layout of all facilities Establishment of probable flow sheet from preliminary test work data; major process flow Detailed flow sheet based on comprehensive beneficiation test program, detailed diagrams; initial determinations of material and heat balances. equipment list; diagrams for all process flows; material and heat balances finalized Rough topographic maps; soil conditions report for foundation determinations; basic Detailed togographic maps with soil conditions identified for foundation design, loadings preliminary quantities and quantities Preliminary listing of major equipment items with initial sizings and specifications Complete listing of major equipment items with detailed sizings and specifications Sketches Exterior elevations only Preliminary P&ID Major P&ID Basic one-line diagram All design one-line diagram General description Detailed list of major items with horsepower General description Detailed list of components Facilities General overview with types of support facilities described All required support facilities identified, sizes and quantities estimated All necessary support facilities identified, sized and costed Communications Communications requirements identified Communications systems study Communications licensing and standards known Power requirements and unit costs derived from detailed engineerin study; unit costs from quotes

General overview with types of support facilities described Communications requirements identified Overview of power availability and regional unit power costs

All required support facilities identified, sizes and quantities estimated Communications systems study Power sources and requirements identified; unit costs obtained from power source

Minimum Report Contents for Engineering Studies (fuente Pincock Allen & Holt - www.pincock.com)
DESCRIPTION
HYDROLOGY Water Sources Water Usage Dewatering ENVIRONMENTAL Setting Estimated using regional data Factored plant volume and unit costs Dewatering parameters identified Preliminary hydrology study Required plant water volumes and unit costs estimated Dewatering parameters estimated Water Sources Estimated using regional data Preliminary hydrology study Specific water source identified Requisite plant volumes and unit costs derived from detailed engineering/geotechnical studies Dewatering parameters confirmed and plan defined

Conceptual

(Scoping Study)

Prefeasibility

Study

Feasibility

Study

Preliminary evaluation of the project's impact on the environment; schedule of Characterization of all the project's potential impacts on the environment; finalize Preliminary evaluation of project setting for potentially significant environmental or environmental and/or other permitting requirements; evaluate project setting for schedule of environmental and/or other permitting requirements; evaluate project setting permitting constraints for site data potentially significant environmental and/or permitting constraints from site data for potentially significant environmental and/or permitting constraints Collect and review available environmental data from existing databases for Collect and review all available, existing data for environmental studies assessments or environmental studies, assessments or audits; regulatory inspections, audits; regulatory inspections, waste handling practices, management plans, and all waste handling practices; management plans; and all applicable environmental laws and applicable environmental laws and regulations; no social, training or safety programs regulations; plans; initiate baseline data gatherin social, training, and health /safety identified programs identified None Draft EIS/EA initiated All requisite environmental data for project are identified; site sampling and analyses are complete; detailed review of the type, scope and schedule for producing environmental and/or government reports; comprehensive gathering and evaluation of baseline environmental conditions; social, raining, and health/safety programs confirmed Draft EIS/EA submitted to regulatory authorities

Data

EIS/EA

Reporting and Plans

Conceptual plans for managing any identified environmental issues

Environmental characteristics used in project design; environmental plans and monitoring Preparation of environmental plans and monitoring programs; preliminary sediment and programs are finalized; sediment and erosion control plan; management plan finalized for erosion control plan; conceptual reclamation plan; evaluation of acid rock drainage; solid and hazardous wastes; finalize impact mitigation plan; geotechnical stability analysis geotechnical stability review of waste dumps and tailings dam; preliminary impact of all major facilities; finalize reclamation plan; final analysis of acid rock drainage; finalize mitigation plan; preliminary spill and emergency response plan spill and emergency response plan Outline of a site environmental monitoring plan Comprehensive overview and listing of required permits Complete environmental monitoring plan Detailed evaluation of all pertinent environmental and permitting requirements and schedule for obtaining operating license

Monitoring PERMIT REQUIREMENTS

Not considered General overview

DESCRIPTION
PROJECT DEVELOPMENT SCHEDULE Development Plan

Conceptual
Development period and mine life estimated

(Scoping Study)

Prefeasibility

Study

Feasibility

Study

Development period and overall schedule estimated; mine life determined development Detailed development schedule; mine life known; development schedule finalized schedule set

Project Master Schedule

Gantt bar chart with overall time frames and project flow planning; detailed project level Gantt bar chart with overall time frames; schedule outline for detailed engineering; schedule showing project deliverables and detailed engineering; CP schedule; major Estimated showing start and end of construction; Gantt bar chart of major work elements QA/QC program outlined; preliminary construction schedule; preliminary project milestones identified; project control system outlined; QA/QC and safety program execution plan finalized; preliminary project procedures manual; project design basis finalized

CAPITAL COST ESTIMATE Basis Civil Structural Architectural Piping/HVAC Electrical Instrumentation Construction Labor Construction Labor Productivity Material Volumes/Amounts Material/Equipment Pricing Infrastructure Contractors EPCM Pricing Owner's Environmental Compliance Escalation Working Capital Accuracy Contingency OPERATING COST ESTIMATE Basis Operating Quantities Unit Costs Accuracy ECONOMIC EVALUATION Financial Analysis Commodity Price(s) Royalties and Taxes Smelting, Refining and Freight Cash Flow Analysis Economic Criteria Sensitivity Analysis RISK EVALUATION Risk Assessment Project

Order-of-magnitude based historic data or factoring

Estimates from historical factors, percentages and vendor quotes based on materials Detailed from estimates; engineering 15 to 25% complete; multiple vendor quotes volumes

Included in unit cost or as a percentage of total cost Percentage of estimated construction cost FOB mine site including all taxes and duties Historic estimate Factored from historic experience Typically not considered Factored from historic experience +-50% 25% Order-of-Magnitude estimate General Historic unit costs and factoring +/- 35% Preliminary assessment of principal economic parameters Estimated based on 3yr average minimum Preliminary assessment Historic data Simple cash flow Simple IRR and NPV (pre- and after-tax) Basic analysis to minimal amount of project variables General overview Preliminary overview of geology, engineering, and environmental

Percentage of direct cost by cost area for contractor; historic for subcontractors Percentage of detailed construction cost FOB mine site including all taxes and duties Estimate from experience factored for similar project Estimate from experience factored for similar project Based on company's current budget percentage Estimate from experience factored for similar project +/- 25% 15% Estimates for unit rates and quantified estimates with some factoring Quantified by estimates with some factoring Estimates for labor, power and consumables; some factoring +/- 25% Assessment of the principal economic parameters Estimated based on 3yr average minimum Preliminary analysis Budgetary quotes Preliminary cash flow Preliminary IRR and NPV (pre- and after-tax) Preliminary to selected key project variables

Written quotes from contractor and subcontractors Calculated estimate from EPC(M) firm FOB mine site including all taxes and duties Estimate prepared from detail zero based budget Estimate prepared from detail zero based budget for design engineering and specific permit requirements Based by cost area with risk Estimate prepared from detail zero based budget +/- 15% 10% Detailed from zero-based budget; minimal factoring Detailed estimates Letter quotes from vendors; minimal factoring +/- 15% Full assessment of all principal economic parameters Estimated based on 3yr average minimum or detailed market studies Detailed analysis with tax authority opinion Firm quotes Formal, detailed cash flow Fully defined IRR, NPV, ROI, and payback period (pre- and after-tax) Numerous analysis to all key project variables

Fatal flaw analysis Formal Monte Carlo analysis and fatal flaw analysis Preliminary environmental, country, permitting, technology, and business; detailed Detailed geology, engineering, environmental, legal, permitting, country, technology, geology and engineering business, and financial

Note 1: Internationally Recognized Standards include: 1. Canadian National Instrument 43-101 and 43-101 CP. 2. Australiasian Code for Reporting of Mineral Resources and Ore Reserves - prepared by the Joint Ore Reserve Committed (JORC) 3. U.S. Securities & Exchange Commission Industry Guide 7 4. SME Guide for Reporting Exploration Information, Mineral Resources and Mineral Reserves