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Pulacayo Project Feasibility Study - Apogee Silver

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<strong>Pulacayo</strong> 1 000 t/d Phase I <strong>Feasibility</strong> <strong>Study</strong> - NI 43-101 Technical Report<br />

090644-3-0000-20-IFI-100<br />

Figure 14.16: Isometric View of the Indicated Mineral Resource – View to NW<br />

Figure 14.17: Isometric View of the Inferred Mineral Resource – View to NW<br />

14.3.4.12 Pit Optimization and Cut-off Values<br />

Oxide and sulphide zone resources potentially amenable to economic development by<br />

means of an open pit were modeled by P & E Mining Consultants Inc. (P&E) by applying Net<br />

Smelter Return (NSR)/ton cut-off values to the block model and reporting the resulting<br />

tonnage and grade of silver, lead and zinc for potentially mineable areas within a Whittle<br />

optimized pit shell to El 4159 ASL. Resources potentially amenable to economic<br />

development by means of underground extraction were estimated below EL4159ASL using<br />

an NSR cut-off per ton value as described below.<br />

The NSR cut-off grade calculations for resource reporting of open pit and underground<br />

potentially economic portions of the mineralization were founded on operating costs provided<br />

by <strong>Apogee</strong>. P&E has reviewed these costs and consider them to be reasonable given P&E's<br />

recent resource/reserve estimating experience in Peru, Guyana, Ecuador and Argentina.<br />

TWP Sudamérica S.A. Av. Encalada 1257 Of. 801, Santiago de Surco Lima 33, Perú (51-1) 4377473<br />

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