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
9.2.5 Diamond Drilling
Details of diamond drilling carried out by Apogee on the Pulacayo property are reported in
detail in Section 10.0 of this report and are summarized below.
Since originally accessing the property in 2002, until the effective date of this report, ASC
and Apogee have completed 69 739.15 m of drilling from surface and underground on the
Pulacayo property. ASC drilling totaled 5 009.2 m between 2002 and 2006 in 24 holes and
Apogee drilling was completed in 4 subsequent phases. Phase I was undertaken between
January and June of 2006 and included 19 holes totaling approximately 4 718 m. Phase II
drilling was initiated in November, 2007 and consisted of 14 holes totaling 3 442.18 m.
Phase III drilling was carried out between January and August of 2008 and included 84 drill
holes totaling approximately 20 758.91m. Phase IV drilling that was carried out between
January 2010 and December 2011 and consisted of 35 810.81 m in 149 holes. The last 45
holes (6 254m) of Phase IV were focused on oxide zone definition.
Between June 2006 and February 2007, Apogee also completed 13 631.2 m of diamond
drilling on the Paca deposit that is located approximately 10 km north of Pulacayo. Results of
the program are reported in a mineral resource estimate for the Paca deposit completed in
2007 by Micon and reported by Pressacco and Gowans (2007). This drilling program is not
material to the current Pulacayo resource estimate and is mentioned here for information
purposes only.
9.2.6 Mineral Resource Estimates by Micon
Two mineral resource estimates for the Pulacayo property were prepared on behalf of
Apogee by Micon, with the first having an effective date of October 28, 2008 and the second
having an effective date of October 14th, 2009. Pressacco and Shoemaker (2009) reported
on the first estimate and Pressacco et al. (2010) presented results of the second. In 2007,
Micon also prepared a resource estimate for the nearby Paca deposit, also held by Apogee,
but, as noted above, that deposit is not included in the current or past Pulacayo estimates.
Both Pulacayo estimates are now historic in nature and should not be relied upon. They
were superseded by subsequent estimates prepared by Mercator.
Tabulated results of the 2008 and 2009 Micon resource estimates are presented below in
Table 9.1 and Table 9.2 and both were prepared in accordance with Canadian Institute of
Mining, Metallurgy and Petroleum Standards on Mineral Resources and Reserves:
Definitions and Guidelines (the CIM Standards) and disclosure requirements of National
Instrument 43-101. Technical reports for each have been filed on SEDAR.
Both Micon estimates were based on geostatistical block models developed using Gemcom-
Surpac Version 6.1.1 software with metal grade interpolation carried out using Ordinary
Kriging (OK) methods checked by Nearest Neighbour (NN) and Inverse Distance Squared
(ID2) methods The deposit was modeled using a wireframed solid developed from drilling
cross section interpretations of calculated Net Smelter Return (NSR) values. Resource
reporting included all blocks within the respective wireframed solids and metal capping
values of 1800 g/ for Ag, 11.5% Zn and 15% Pb were applied.
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