ELG Open Pits

El Limón Guajes Open Pit operations are comprised of the El Limón, Guajes, and El Limón Sur deposits. The open pits contained 1.90 million ounces of gold in reserves at the end of 2019 at an average gold grade of 2.76 g/t. Lower grade ore is being stockpiled and will be processed once active mining in the open pits has ceased, likely in 2023 based on current mining rates and reserves.

For a summary of the mining activities in 2019, see Table 3 in the Company’s Q4 2019 management’s discussion and analysis dated February 18, 2020 (“Q4 2019 MD&A”).

Mineral Reserve Statement as of December 31, 2019 – El Limón and Guajes Open Pits

As of December 31, 2019 Tonnes Au Ag Au Ag
  (Mt) (g/t) (g/t) (koz) (koz)
Reserves - Open Pit          
El Limón (including El Limón Sur)          
Proven 3.13 3.53 3.9 356 397
Probable 8.18 3.08 4.0 811 1,039
Proven & Probable 11.31 3.21 4.0 1,167 1,436
Guajes          
Proven 2.41 3.44 3.1 266 243
Probable 2.74 3.16 2.7 278 236
Proven & Probable 5.15 3.29 2.9 545 479
Mined Stockpiles          
Proven 2.39 1.42 4.3 110 332
El Limón Guajes Low Grade          
Proven 0.62 0.94 1.9 19 37
Probable 1.92 0.94 2.2 58 136
Proven & Probable 2.54 0.94 2.1 77 173
Total Open Pit          
Proven 8.56 2.73 3.7 751 1,009
Probable 12.84 2.78 3.4 1,147 1,411
Proven & Probable 21.40 2.76 3.5 1,898 2,420

Notes to accompany mineral reserve table (open pit and underground)

  1. Mineral reserves are founded on Guajes, El Limón and El Limón Sur measured and indicated mineral resources with an effective date of December 31, 2019.
  2. Mineral reserves are based on open pit mining within designed pits and underground cut and fill mining where appropriate and include estimates of dilution and mining losses.
  3. El Limón and Guajes Open Pit mineral reserves are reported above a diluted cut-off grade of 1.0 g/t Au and 1.1 g/t Au for El Limón Sur within designed pits. El Limón and Guajes Low Grade mineral reserves are reported above a diluted cut-off grade of 0.9 g/t Au.
  4. El Limón Underground mineral reserves are reported above a diluted cut-off grade of 3.7g/t Au and 1.0 g/t Au for incremental material within designed mechanized cut and fill stope shapes.
  5. Cut-off grades, designed pits, and mining shapes are considered appropriate for a metal price of US$1,200/oz Au and metal recoveries of 88% Au.
  6. Mineral reserves were developed in accordance with CIM guidelines.
  7. Rounding may result in apparent summation differences between tonnes, grade, and contained metal content.
  8. The qualified person for the mineral reserve estimate is Clifford Lafleur P.Eng the Director of Mineral Resources and Mine Engineering for the Corporation.

Mineral Resource Statement as of December 31, 2019 – El Limón and Guajes Open Pits 

As of December 31, 2019 Tonnes Au Ag Au Ag
  (Mt) (g/t) (g/t) (koz) (koz)
Resources - Open Pit          
El Limón (including El Limón Sur)          
Measured 3.68 3.60 4.6 430 550
Indicated 13.11 2.80 5.0 1,180 2,120
Measured & Indicated 16.79 2.97 4.9 1,610 2,670
Inferred 1.96 1.87 5.4 120 340
Guajes          
Measured 2.95 3.30 3.1 310 290
Indicated 5.11 2.76 2.2 450 350
Measured & Indicated 8.06 2.96 2.5 770 650
Inferred 0.46 1.93 2.7 30 40
Total Open Pit          
Measured 6.63 3.47 3.9 740 840
Indicated 18.22 2.79 4.2 1,630 2,470
Measured & Indicated 24.85 2.97 4.1 2,370 3,310
Inferred 2.42 1.88 4.9 150 380

Notes to accompany mineral resource table (open pit and underground)

  1. The effective date of the estimate is December 31, 2019. 
  2. The estimate was prepared by Dr. Lars Weiershäuser, P.Geo., an employee of the Company, who is a “Qualified Person” under NI 43-101.
  3. Mineral resources are reported inclusive mineral reserves; mineral resources that are not mineral reserves do not have demonstrated economic viability.
  4. Mineral resources amenable for open pit extraction:
    1. Resources have been reported below a topography with mining progress as of December 1, 2019. Stockpiled material is not considered in the mineral resource tabulation.
    2. Resources are reported above a cut-off grade of 0.8 g/t gold and are constraint within a conceptual open pit shell.
    3. Assumed pit slopes range from 3 to 49 degrees.
    4. The assumed open pit mining costs are US$2.18/tonne, processing costs US$25.00/tonne, general and administrative costs of US$8.19/tonne processed.
  5. Mineral resources amenable for underground extraction:
    1. Resources are reported above a 2.5 g/t Au cut-off grade
    2. Resources have been reported considering mining progress as of December 1, 2019.
    3. Mineral resources for El Limon Deep have been reported below the reserve pit of the El Limón deposit
  6. El Limon Open pit mineral resources have been reduced between the final reserve pit and the resource pit to account for mineral resources reported under El Limon Deep including a conceptual crown pillar
  7. Mineral resources are reported using a long-term metal prices of US$1,550/oz gold and US$21/oz silver.
  8. Metallurgical recoveries are assumed to be 88% for gold and 32% for silver.
  9. Mineral resources are classified in accordance with the CIM Standards.
  10. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade, and metal content.  

“CIM Standards” means the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves and the 2003 CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines.

Additional technical information may be found on this website under “News” and updates in the Company’s continuous disclosure documents also available on www.sedar.com and elsewhere on this website. For additional information on 2019 year-end reserves and resources for the El Limón Guajes Complex, please refer to the Company’s press released dated April 28, 2020.