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
(7) Preliminary Economic Assessment
A Preliminary Economic Assessment (PEA) dated 25 June 2010 was completed by Micon
for Apogee and reported by Pressacco et al. (2010). The assessment forms part of Apogee’s
continuous public disclosure record and is available on SEDAR. However, as disclosed in
the revised Mercator resource estimate Technical Report dated 09 May 2012 (Cullen and
Webster, 2012a) the conclusions and analysis presented in the Micon PEA were no longer
considered to be current with respect to the Pulacayo project. This reflected Apogee’s
initiation of current project Feasibility Study programs that include changes in project scope
and approach. Since Apogee no longer considers the Micon 2010 PA to be current, details
of that analysis are not presented in this report and were not used to support the 09 May
2012 revised resource estimate by Mercator.
9.2.7 Mineral Resource Estimates by Mercator
Mercator prepared a mineral resource estimate for the Pulacayo deposit in 2011 after
completion of additional diamond drilling on the property. Table 9.3 presents details of this
estimate, which has an effective date of 19 October 2011. The current estimate supersedes
this resource statement, which is now considered historic and should not be relied upon.
Table 9.3: Historic Pulacayo Deposit Mineral Resource – 19 October 2011
Class Rounded Tons Ag g/t Pb % Zn %
Inferred 5,420, 000 150.61 0.83 2.07
Indicated 5,960,000 153.14 0.91 2.04
(1) Mineral Resources are reported above a $ 40 USD NSR cut-off
(2) Metal prices used were $ 24.78 USD/oz Ag, $ 1.19 USD/lb Pb, and $ 1.09 USD/’b
Zn
(3) Tonnages have been rounded to the nearest 10,000
(4) Contributing 1 m composites were capped at 1,500 g/t Ag, 15% Pb, and 15% Zn
(5) Specific gravity is based on an interpolated ID2 model
(6) Mineral resources that are not mineral reserves do not have demonstrated
economic viability. The estimate of mineral resources may be materially affected by
environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other
relevant issues.
The 19 October 2011 Mercator estimate was based on validated results of 59,352 m of
diamond drilling from 174 surface drill holes and 41 underground drill holes carried out by
ASC Bolivia and Apogee through various drill programs between 2002 and 2011. Modeling
was performed using Gemcom Surpac(R) 6.2.1 modeling software with silver, lead and zinc
grades estimated by inverse distance squared (ID2) interpolation from 1 m down hole assay
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