Notes to mineral reserves and resources table
Mineral reserves and resources are shown on a 100% basis for each property. Mineral resources are exclusive of mineral reserves, except for Cobre Panama.
Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content.
The mineral reserve and resource estimates are prepared in accordance with the CIM Definition Standards On Mineral Resources and Mineral Reserves, adopted by CIM Council on November 14, 2004, and updated November 27, 2010 and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines, adopted by CIM Council on November 23, 2003, using geostatistical and/or classical methods, plus economic and mining parameters appropriate to each project. You will find the definitions and guidelines at www.cim.org.
Estimates for all operations are prepared by or under the supervision of a qualified person as defined in National Instrument 43-101 (usually an engineer or geologist).
There are no known environmental, permitting, legal, taxation, political or other relevant issues that would materially affect the estimates of the mineral reserves.
Mineral resources which do not form part of the mineral reserves do not have demonstrated economic viability.
The Qualified Persons identified below have reviewed the technical content of this release.
Cobre Panama
Mineral resources as at August, 2012, were estimated by Robert Sim, P. Geo., of SIM Geological Inc. Mineral reserves as at December 13, 2012 were estimated by William Rose, P.E., of WLR Consulting, Inc., a qualified person under National Instrument 43-101. Both mineral reserves and mineral resources remained unchanged at December 31, 2012.
Reserve estimates are based on the following assumptions:
-- copper price: US $2.25 per pound-- gold price: US $1,000 per ounce-- silver price: US $16 per ounce-- molybdenum price: US $13.50 per pound-- Mining costs: US $1.66 per tonne of ore mined, US $1.96 per tonne of waste mined and-- Milling and general and administration cost: US $5.27 - $5.52 per tonne of ore milled (depending on the deposit), average life of mine metallurgical recoveries: 89 percent for copper, 55 percent for gold, 44 percent for silver and 53 percent for molybdenum.
Mineral resources include mineral reserves.
Resource grades are estimated using ordinary kriging with a nominal block size of 25 metres by 25 metres by 15 metres. Resources are limited inside a pit shell defined by a copper price of US $2.60 per pound, $1.75 per tonne mining cost, $7.02 per tonne total site operating cost, and are tabulated at a cut-off grade of 0.15 percent copper.
Las Cruces
Mineral resources as at December 31, 2012, were estimated by Robert Sim, P. Geo., of SIM Geological Inc. Mineral reserve estimates as at December 31, 2012 were prepared under the supervision of Joseph Boaro, P. Eng. (Director, Mining, Inmet Mining).
Reserve estimates are based on the following assumptions:
-- copper price: US $2.75 per pound-- exchange rate: EUR1.00 = US $1.30-- open pit cut-off: 1 percent copper
Resource estimates for the gossan material are based on a cut-off grade of 1 gram per tonne gold.
Resource estimates for the primary sulphide material are based on a cut-off grade of 1% copper equivalent (CuEq) based upon the following formula:
CuEq = (Cu% + (Zn% x 0.360) + (Pb% x 0.360) + (Ag gpt x 0.0106))
Cayeli
Mineral resources as at December 31, 2012, were estimated by Robert Sim, P. Geo., of SIM Geological Inc. Mineral reserve estimates as at December 31, 2012 were prepared under the supervision of Joseph Boaro, P. Eng. (Director, Mining, Inmet Mining).
Reserve estimates are based on the following assumptions:
-- copper price: US $2.75 per pound-- zinc price: US $1.00 per pound-- net smelter return cut-off: US $65 per tonne.
Resource estimates include only material in addition to those used to generate reserves and are based on the same metal prices and a lower net smelter return cut-off: US $59 per tonne.
Pyhasalmi
Mineral reserve and resource estimates as at December 31, 2012 prepared under the supervision of Timo Maki, EurGeol., European Federation of Geologists (Chief Geologist, Pyhasalmi).
Mineral reserve estimates are based on the following assumptions:
-- copper price: US $2.75 per pound-- zinc price: US $1.00 per pound-- exchange rate: EUR1.00 = US $1.30-- net smelter return cut-off: EUR31.81 per tonne.
Resource estimates are based on the geological limits of the massive sulphides.
Forward looking information
Securities regulators encourage companies to disclose forward-looking information to help investors understand a company's future prospects. This press release contains forward-looking information. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, expect, anticipate, and believe or other similar words. Capital and operating cost estimates are forward-looking statements, and are based on assumptions that we believe to be reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our respective business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements.
About Inmet
Inmet is a Canadian-based global mining company that produces copper and zinc. We have three mining operations: Cayeli (Turkey), Las Cruces (Spain) and Pyhasalmi (Finland), and own 80% of the Cobre Panama development project, currently in construction.
This press release is also available at www.inmetmining.com.
Contacts:
Inmet Shareholder Contact:
Inmet Mining Corporation
Flora Wood
Director, Investor Relations
+1 416 361 4808
Inmet Mining Corporation
Scott Herr
Vice President, Mining
+1 416 860 3983
www.inmetmining.com
Laurel Hill Advisory Group
North American Toll Free: +1 877 452 7184
Banks and Brokers and collect calls outside North America:
+1 416 304 0211
[email protected]
Inmet Media Contact:
Longview Communications Inc.
David Ryan
+1 416 649 8007
[email protected]
