Note: Copper equivalency estimates were derived using metal prices of US$ 3.59/lb for Copper and US$ 1472/oz for gold
Resource Estimate Methodology
Data obtained from the Atico diamond drill program were used to construct three-dimensional geometric wireframes representing the massive sulfide zones extending below the 2000 level in the El Roble mine. These zones (named Maximus, Goliath, Apolo, Andromeda, Orion, Transformador, Zeus, Aquiles, and Ares) were used to constrain the estimation of an NI 43-101 compliant inferred resource at El Roble mine. Copper, gold, silver, lead, zinc and cobalt grades were estimated for 5m x 5m x 5m blocks within the wireframes. Prior to estimation of the block grades, copper grades were capped at 20% Cu, gold was capped at 20g/t Au and silver was capped at 100g/t Ag. A three-pass inverse distance cubed (1/d3) method was used for the block grade estimates, along a trend plane having an azimuth of 320 degrees and a minus 75-degree dip to the north. The first pass used search distances along strike and down dip of 25m, and 5m perpendicular to the trend plane. The second pass used search distances along strike and down dip of 75m, and 10m perpendicular to the trend plane. The third pass used search distances along strike and down dip of 150m, and 20m perpendicular to the trend plane. The first pass required a minimum of one composite and allowed a maximum of three composites, with no more than one composite per drill hole. The second pass required a minimum of three composites and allowed a maximum of six composites, with a limit of two composites per drill hole, while the third pass required a minimum of three composites, a maximum of eight composites allowed and a limit of two composites per drill hole. The first pass resulted in grade estimates for 56 percent of the blocks. The second pass resulted in 26 percent of the blocks receiving grade estimates, while the third pass resulted in grade estimates for the remaining 18 percent of the blocks.
In the opinion of Atico and its Qualified Persons, the methodology used is appropriate and provides a reasonable estimate of the copper and gold content of inferred mineral resources for the El Roble deposit that conform to NI 43-101 guidelines. The wireframes interpreted by Atico as part of the estimation process provide an excellent guide for the planned in-fill drilling and other work required to estimate measured and indicated mineral resources and an eventual mineral reserve estimate.
A NI 43-101 technical report will be filed on www.sedar.com and posted on the company's website within 45 days of this news release.
El Roble drill program and exploration update
On-going underground drilling at El Roble mine is currently focused on further defining the interpreted boundaries of the Maximus and Goliath massive sulfide bodies, which are considered primary targets for mining operations below the 2000 level given their close proximity to current mine workings. Nine drill holes have been planned for this purpose and are scheduled to be completed in early July. The underground program will continue at the south end of the known mineralized strike length and below the 2000 level, with the goal of discovering additional massive sulfide bodies.
Drilling at El Roble mine was interrupted in April (see news releases dated April 15, 2013 and April 23, 2013) with news flow further delayed in May due to consecutive failure of holes 31a, 31b and 32 caused by ground conditions. The company expects the drilling results news flow will resume in early July.
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