Pulacayo Project Feasibility Study - Apogee Silver

Pulacayo 1 000 t/d Phase I Feasibility Study - NI 43-101 Technical Report
090644-3-0000-20-IFI-100
calculate the ratios of concentration for the lead and zinc concentrates respectively. In this
way, the value for each concentrate could be related to a value per ton of ore, based on the
grade of the ore being evaluated and the current price of the metals deemed to be
appropriate for this evaluation.
Standard deductions were made from the metal content in each concentrate to represent
what payment a smelter would calculate in a concentrate purchase transaction. Penalties for
deleterious elements were not deducted because it was not possible to predict the exact
amount of arsenic or antimony in any given ore block, and these are considered to have
minimal impact on the values so calculated. However, care should be taken in the final ore
reserve assessment to ensure that pockets of deleterious metals will not interfere with the
profitability of the operation.”
NSR values for model blocks occurring within the sulphide zone were determined by means
of the Starkey net smelter calculator. The modeling used a 36 month trailing average silver
price of 25.00 USD/oz. The base metal prices used in the modeling were 0.89 USD/lb lead
and 1.00 USD/lb zinc. The base metal prices were supplied by Exen Consulting Ltd. of
Oakville, Ontario and are based upon the average long-term analyst lead and zinc price
projections from a number of metal broker and mining investment banking sources. Exen
Consulting Ltd. is a commercial concentrate marketing business providing consulting
services to producers, metal traders and smelters around the world. Missing or null assay
values prevented calculation of a NSR value and in such circumstances values of silver, lead
or zinc were replaced with values reflecting one half of their respective analytical detection
limits. Details of smelter contract terms used in the calculator are confidential and cannot be
publicly disclosed.
14.3.4 Data Domains and Solid Modeling
14.3.4.1 Topographic Surface
Apogee carried out a detailed topographic survey in 2008 that generated a high quality
topographic map for an area that measures approximately 2,600 m east-west and 1,600 m
north south over the Pulacayo deposit. The survey used total station survey methods and a
series of reflecting prisms to generate a two meter elevation data set and to pick up
additional important features such as roads and shafts. The topographic map is represented
as a Gemcom Surpac DTM model and is applied as the topographic constraint for resource
modeling (Figure 14.1).
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