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
coring size to NQ (47.6 mm diameter). Calculated core recoveries for all programs are very
high and core loss is not considered a problem for this project.
1.3.5 Sample Preparation, Analyses and Security
Apogee has instituted various protocols with respect to handling, logging and sampling of
drill core and for sample preparation, transportation, laboratory analysis, quality control and
assurance (QAQC), and security. Samples are shipped to ALS Chemex (ALS) in Oruro,
Bolivia for preparation. Analysis of prepared samples was initially carried out by ALS
Chemex in Vancouver, BC, Canada and since 2006 has been carried out by ALS Chemex in
Lima, Peru. Silver, lead and zinc levels are analyzed using an Aqua Regia digestion and
Atomic Absorption Spectroscopy (AAS). ALS is an internationally accredited laboratory with
National Association of Testing Authorities (NATA) certification and complies with standards
of ISO 9001:2000 and ISO 17025:1999. Apogee’s internal QAQC program includes blind
insertion of reference standards, blanks and duplicates in each analytical shipment and
analysis of check samples at an independent accredited laboratory.
1.3.6 Data Verification
Core sample records, lithologic logs, laboratory reports and associated drill hole information
for all drill programs were digitally compiled by Apogee staff and made available to Mercator
for checking and validation to support resource estimation programs. Mercator completed
two field visits to the Pulacayo site, (03 August to 10 August 2011 and 26 April to 28 April
2012) and in each case completed reviews of Apogee drill program components, checked
drill collar positions using GPS instrumentation, and conducted drill core check sampling
programs. Detailed review and assessment of all Apogee drilling program QAQC program
results was carried as part of the resource estimation process. All checking and validation
procedures carried out by Mercator produced acceptable results and the project drilling
database was determined to be acceptable for resource estimation purposes.
1.3.7 Mineral Resource Estimates
The Mineral Resource Estimate used in the current Feasibility Study was prepared by
Mercator in accordance with Canadian Securities Administrators National Instrument 43-101
("NI 43-101") and is based on Canadian Institute of Mining, Metallurgy and Petroleum
Definition Standards on Mineral Resources and Mineral Reserves (CIM Standards). The
effective date of the mineral resource estimate is 28 September 2012.
Modeling was performed using Gemcom Surpac® 6.3 modeling software with silver, lead
and zinc grades estimated independently by inverse distance squared (ID2) interpolation
from 1 m down hole assay composites, capped at 1,500 g/t, 15%, and 15% respectively.
Block size is 5 m (x) by 3 m (y) by 3 m (z), with one unit of standard sub-blocking allowed.
The modeled deposit has a strike length of 1,500 m oriented at 280° and a 600 m subvertical
dip extent. A specific gravity model was also interpolated using ID2 methodology.
Net Smelter Return (NSR) values were calculated from block grade parameters and reflect a
36 month trailing average silver price of $ 25.00 USD/oz and long term prices of $ 0.86
USD/lb lead and $ 1.00 USD/lb zinc. Open pit resources to an elevation of 4,159 m ASL (top
of proposed crown pillar) were determined within a Whittle optimized pit shell. Only silver
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