Highlights of the 2021 update include:
- In total, at the same cut-off grades, a 13% increase in total proven and probable mineral reserves at the
MCSA Mining Complex with a significant 56% increase in mineral reserves within theDeepening Extension Zone of thePilar Mine that remains open for potential expansion; and, - A 32% increase in measured and indicated mineral resources (25% increase in proven and probable reserves) for the
NX Gold Mine , at the same cut-off grades. These increases are driven by extensions of the Santo Antonio Vein and the maiden mineral reserve estimate for the Matinha Vein that remains open for potential expansion and is expected to become an integral part of the operation in the coming years.
Deepening Extension Zone Highlights, Pilar Mine
- Exceptional drill results continue to demonstrate significant year-on-year increases in the grade and contained copper of the
Deepening Extension Zone of thePilar Mine since its initial discovery in 2018, further supporting the Company's decision to construct a larger 6.3 meter finished diameter external shaft (vs. 4.5 meters previously) to maximize the value of the mine;- Proven and probable mineral reserves within the
Deepening Extension Zone increased by 56% to 194.2 kt of contained copper (11.0 Mt grading 1.76% copper) compared to 124.6 kt of contained copper (7.4 Mt grading 1.68% copper) in 2020; - Measured and indicated mineral resources, inclusive of mineral reserves, within the
Deepening Extension Zone increased by 55% year-on-year to 217.1 kt of contained copper (10.4 Mt grading 2.08% copper) compared to 140.0 kt of contained copper (7.5 Mt grading 1.86% copper) in 2020; and, - Inferred mineral resources within the
Deepening Extension Zone increased by 37% to 130.1 kt of contained copper (6.1 Mt grading 2.14% copper) compared to 94.8 kt of contained copper (4.5 Mt grading 2.12% copper) in 2020.
- Proven and probable mineral reserves within the
Deepening Extension Mineral Resource Evolution since 2018
(contained copper in kt)
Note: Mineral resource estimates were prepared in accordance with the
MCSA Mining Complex Highlights, including the Deepening Extension Zone
- Proven and probable mineral reserves increased by 13% to 607.1 kt of contained copper (59.3 Mt grading 1.02% copper) compared to 536.0 kt of contained copper (50.5 Mt grading 1.06% copper) in 2020;
- Measured and indicated mineral resources, inclusive of mineral reserves, increased 6% to 1,221.1 kt of contained copper (104.7 Mt grading 1.17%) compared to 1,154.9 kt of contained copper (102.8 Mt grading 1.12% copper) in 2020; and,
- Inferred mineral resources increased 21% to 473.4 kt of contained copper (43.3 Mt grading 1.09% copper) compared to 390.6 kt of contained copper (39.2 Mt grading 1.00% copper) in 2020.
NX Gold Mine Highlights
- Proven and probable mineral reserves increased 25% to 306.8 koz of contained gold (1,104 kt grading 8.64 gpt gold) compared to 244.7 koz of contained gold (862 kt grading 8.83 gpt gold) in 2020;
- Measured and indicated mineral resources, inclusive of mineral reserves, increased 32% to 357.3 koz of contained gold (1,081 kt grading 10.28 gpt gold) compared to 269.9 koz of contained gold (770 kt grading 10.90 gpt gold) in 2020;
- Within the Santo Antonio Vein, proven and probable mineral reserves increased by 13% to 277.5 koz of contained gold (958 kt grading 9.01 gpt gold) compared to 244.7 koz of contained gold (862 kt grading 8.83 gpt gold) in 2020;
- Within the Santo Antonio Vein, measured and indicated mineral resources, inclusive of mineral reserves, increased by 20% to 322.4 koz of contained gold (950 kt grading 10.56 gpt gold) compared to 269.2 koz of contained gold (763 kt grading 10.97 gpt gold) in 2020, driven primarily by conversion of inferred mineral resources delineated in 2020; and,
- Within the Matinha Vein, maiden mineral reserve estimate with probable mineral reserves of 29.4 koz gold (146 kt grading 6.26 gpt gold) while inferred mineral resources increased by 79% to 104.2 koz of contained gold (310 kt grading 10.47 gpt gold) compared to 58.2 koz of contained gold (149 kt grading 12.15 gpt gold) in 2020.
Commenting on the results,
“Over the last year, the
"In addition to significant growth in the
“At the
"As a core tenet of our organic growth strategy, we are pleased to see our investment in exploration continue to generate a pipeline of high-return actionable growth projects across our portfolio. Looking ahead to 2022, our in- and near-mine exploration plans for the year include expanded drilling activities in the upper levels of the
2021 MINERAL RESERVE AND RESOURCE UPDATE
2021 Mineral Reserves & Resources | 2020 Mineral Reserves & Resources | Change | ||||||||
Tonnes | Grade | Contained | Tonnes | Grade | Contained | Contained | ||||
(kt) | (Cu %) | Cu (kt) | (kt) | (Cu %) | Cu (kt) | Cu (kt) | % | |||
Deepening Extension Zone, | ||||||||||
Proven Reserves | 19 | 1.56 | 0.3 | — | — | — | 0.3 | NA | ||
Probable Reserves | 10,996 | 1.76 | 193.9 | 7,432 | 1.68 | 124.6 | 69.3 | 56 | ||
Proven & Probable Reserves1 | 11,016 | 1.76 | 194.2 | 7,432 | 1.68 | 124.6 | 69.6 | 56 | ||
Measured Resources | 4 | 1.77 | 0.1 | — | — | — | 0.1 | NA | ||
Indicated Resources | 10,439 | 2.08 | 217.0 | 7,527 | 1.86 | 140.0 | 76.9 | 55 | ||
Measured & Indicated Resources | 10,442 | 2.08 | 217.1 | 7,527 | 1.86 | 140.0 | 77.0 | 55 | ||
Inferred Resources | 6,095 | 2.14 | 130.1 | 4,476 | 2.12 | 94.8 | 35.3 | 37 |
MCSA Mining Complex, including Deepening Extension Zone
Underground, including Deepening Extension Zone | ||||||||||
Proven Reserves | 9,177 | 1.49 | 136.8 | 9,707 | 1.63 | 158.2 | (21.4 | ) | (14 | ) |
Probable Reserves | 20,797 | 1.42 | 295.6 | 17,516 | 1.34 | 235.6 | 60.1 | 25 | ||
Proven & Probable Reserves1 | 29,974 | 1.44 | 432.4 | 27,224 | 1.45 | 393.8 | 38.7 | 10 | ||
Measured Resources | 30,355 | 1.63 | 493.7 | 33,888 | 1.56 | 527.3 | (33.7 | ) | (6 | ) |
Indicated Resources | 39,005 | 1.33 | 519.9 | 34,292 | 1.23 | 420.6 | 99.3 | 24 | ||
Measured & Indicated Resources | 69,360 | 1.46 | 1,013.6 | 68,180 | 1.39 | 947.9 | 65.7 | 7 | ||
Inferred Resources | 40,331 | 1.14 | 458.3 | 36,271 | 1.05 | 379.8 | 78.5 | 21 | ||
Open Pit | ||||||||||
Proven Reserves | 15,680 | 0.59 | 92.0 | 11,757 | 0.60 | 70.1 | 21.9 | 31 | ||
Probable Reserves | 13,627 | 0.61 | 82.7 | 11,474 | 0.63 | 72.2 | 10.6 | 15 | ||
Proven & Probable Reserves | 29,306 | 0.60 | 174.7 | 23,230 | 0.61 | 142.3 | 32.4 | 23 | ||
Measured Resources | 16,777 | 0.61 | 103.0 | 15,270 | 0.63 | 96.6 | 6.5 | 7 | ||
Indicated Resources | 18,563 | 0.56 | 104.5 | 19,335 | 0.57 | 110.5 | (5.9 | ) | (5 | ) |
Measured & Indicated Resources | 35,340 | 0.59 | 207.5 | 34,605 | 0.60 | 207.0 | 0.5 | — | ||
Inferred Resources | 3,000 | 0.50 | 15.1 | 2,930 | 0.37 | 10.8 | 4.3 | 40 | ||
Total MCSA Mining Complex, including Deepening Extension Zone | ||||||||||
Proven Reserves | 24,857 | 0.92 | 228.8 | 21,464 | 1.06 | 228.3 | 0.5 | — | ||
Probable Reserves | 34,423 | 1.10 | 378.3 | 28,990 | 1.06 | 307.7 | 70.6 | 23 | ||
Proven & Probable Reserves | 59,280 | 1.02 | 607.1 | 50,454 | 1.06 | 536.0 | 71.1 | 13 | ||
Measured Resources | 47,132 | 1.27 | 596.7 | 49,158 | 1.27 | 623.9 | (27.2 | ) | (4 | ) |
Indicated Resources | 57,568 | 1.08 | 624.4 | 53,627 | 0.99 | 531.0 | 93.4 | 18 | ||
Measured & Indicated Resources | 104,700 | 1.17 | 1,221.1 | 102,785 | 1.12 | 1,154.9 | 66.2 | 6 | ||
Inferred Resources | 43,331 | 1.09 | 473.4 | 39,201 | 1.00 | 390.6 | 82.8 | 21 |
1. In the mine design of the Pilar and Vermelhos underground mines, certain stopes include measured and indicated as well as inferred resource blocks. In these instances, inferred resource blocks within the defined mining shape were assigned zero grade. Development occurring within marginal ore, above the operational cut-off grade, has also been included in the mineral reserve estimate. See below notes on mineral reserve and resource estimates for additional technical and scientific information.
2. 2021 mineral reserve and resource estimates are effective as at
2021 Mineral Reserves & Resources | 2020 Mineral Reserves & Resources | Change | ||||||||
Tonnes (kt) | Grade (Au gpt) | Contained Au (koz) | Tonnes (kt) | Grade (Au gpt) | Contained Au (koz) | Contained Au (koz) | % | |||
NX Gold Mine Santo Antonio Vein | ||||||||||
Proven Reserves | — | — | — | — | — | — | — | NA | ||
Probable Reserves | 958 | 9.01 | 277.5 | 862 | 8.83 | 244.7 | 32.8 | 13 | ||
Proven & Probable Reserves | 958 | 9.01 | 277.5 | 862 | 8.83 | 244.7 | 32.8 | 13 | ||
Measured Resources | — | — | — | — | — | — | — | NA | ||
Indicated Resources | 950 | 10.56 | 322.4 | 763 | 10.97 | 269.2 | 53.2 | 20 | ||
Measured & Indicated Resources | 950 | 10.56 | 322.4 | 763 | 10.97 | 269.2 | 53.2 | 20 | ||
Inferred Resources | 248 | 2.99 | 23.9 | 268 | 13.08 | 112.6 | (88.7 | ) | (79 | ) |
Matinha Vein | ||||||||||
Proven Reserves | — | — | — | — | — | — | — | NA | ||
Probable Reserves | 146 | 6.26 | 29.4 | — | — | — | 29.4 | NA | ||
Proven & Probable Reserves | 146 | 6.26 | 29.4 | — | — | — | 29.4 | NA | ||
Measured Resources | — | — | — | — | — | — | — | NA | ||
Indicated Resources | 124 | 8.55 | 34.1 | — | — | — | 34.1 | NA | ||
Measured & Indicated Resources | 124 | 8.55 | 34.1 | — | — | — | 34.1 | NA | ||
Inferred Resources | 310 | 10.47 | 104.2 | 149 | 12.15 | 58.2 | 46.0 | 79 | ||
Brás & Buracão Veins | ||||||||||
Proven Reserves | — | — | — | — | — | — | — | NA | ||
Probable Reserves | — | — | — | — | — | — | — | NA | ||
Proven & Probable Reserves | — | — | — | — | — | — | — | NA | ||
Measured Resources | — | — | — | — | — | — | — | NA | ||
Indicated Resources | 7 | 3.36 | 0.7 | 7 | 3.36 | 0.7 | — | — | ||
Measured & Indicated Resources | 7 | 3.36 | 0.7 | 7 | 3.36 | 0.7 | — | — | ||
Inferred Resources | 157 | 4.71 | 23.8 | 157 | 4.71 | 23.8 | — | — | ||
Total, NX Gold Mine | ||||||||||
Proven Reserves | — | — | — | — | — | — | — | NA | ||
Probable Reserves | 1,104 | 8.64 | 306.8 | 862 | 8.83 | 244.7 | 62.2 | 25 | ||
Proven & Probable Reserves | 1,104 | 8.64 | 306.8 | 862 | 8.83 | 244.7 | 62.2 | 25 | ||
Measured Resources | — | — | — | — | — | — | — | NA | ||
Indicated Resources | 1,081 | 10.28 | 357.3 | 770 | 10.90 | 269.9 | 87.3 | 32 | ||
Measured & Indicated Resources | 1,081 | 10.28 | 357.3 | 770 | 10.90 | 269.9 | 87.3 | 32 | ||
Inferred Resources | 714 | 6.61 | 151.9 | 574 | 10.55 | 194.6 | (42.7 | ) | (22 | ) |
1. 2021 mineral reserve and resource estimates are effective as at
NOTES ON MINERAL RESERVE AND RESOURCE TABLES
Mineral reserves are presented inclusive of mineral resources. All figures have been rounded to the relative accuracy of the estimates. Summed amounts may not add correctly due to rounding. Mineral resources that are not mineral reserves do not have a demonstrated economic viability.
Estimates for the
Reference herein of $ or USD is to
MCSA Mining Complex
Mineral reserve and mineral resource estimates are effective as at
Underground mineral resource estimates have been constrained within newly developed 3D lithology models applying a 0.45% and 0.20% copper grade envelope for high and marginal grade, respectively. Within these envelopes, mineral resources for underground deposits were constrained using varying stope dimensions of up to 20m by 10m by 35m applying a 0.51% copper cut-off grade, as well as a 0.32% copper marginal (or operational) cut-off grade. Mineral resources have been estimated using ordinary kriging inside 5m by 5m by 5m block sizes. The mineral resource estimates were prepared in accordance with the CIM Standards, and the CIM Guidelines, using geostatistical and/or classical methods, plus economic and mining parameters appropriate to the deposit.
A low-grade envelope using a cut-off grade of 0.20% copper for underground deposits was used to develop a dilution envelope and development block model that was included to define the grade of blocks within the dilution envelope in the planning and design of stopes within the mineral resources and mineral reserve estimate.
Open pit mineral resource estimates have been constrained within newly developed 3D lithology models using a 0.21% copper cut-off grade for open pit deposits. Mineral resources have been estimated using ordinary kriging inside 5m by 5m by 5m block sizes. The mineral resource estimates were prepared in accordance with the CIM Standards, and the CIM Guidelines, using geostatistical and/or classical methods, plus economic and mining parameters appropriate to the deposit.
Mineral reserves are the economic portion of the measured and indicated mineral resources. Mining dilution and recovery factors vary for specific mineral reserve sources and are influenced by factors such as deposit type, deposit shape, stope orientation and selected mining method. In the mine design of the Pilar and Vermelhos underground mines, certain stopes include measured and indicated as well as inferred resource blocks. In these instances, inferred resource blocks within the defined mining shape were assigned zero grade. In 2021, inferred blocks assigned zero grade totaled approximately 159,000 tonnes for the
Please refer to the NI 43-101 technical report entitled "2020 Updated Mineral Resources and Mineral Reserves Statements of Mineração Caraíba’s Vale do Curaçá Mineral Assets, Curaçá Valley" dated
Please refer to the table below for details related to the mineral reserve and resource growth of the
Deepening Extension Mineral Resource Evolution since 2018
2018 | 2019 | |||||||
Tonnes | Grade | Contained Cu | Tonnes | Grade | Contained Cu | |||
(kt) | (Cu %) | (kt) | (kt) | (Cu %) | (kt) | |||
Proven Reserves | — | — | — | — | — | — | ||
Probable Reserves | — | — | — | 1,369 | 1.75 | 23.9 | ||
Proven & Probable Reserves | — | — | — | 1,369 | 1.75 | 23.9 | ||
Measured Resources | 45 | 0.39 | 0.2 | — | — | — | ||
Indicated Resources | 1,236 | 0.62 | 7.6 | 1,351 | 2.19 | 29.6 | ||
Measured & Indicated Resources | 1,282 | 0.61 | 7.8 | 1,351 | 2.19 | 29.6 | ||
Inferred Resources | 334 | 2.60 | 8.7 | 1,330 | 1.86 | 24.7 | ||
2020 | 2021 | |||||||
Tonnes | Grade | Contained Cu | Tonnes | Grade | Contained Cu | |||
(kt) | (Cu %) | (kt) | (kt) | (Cu %) | (kt) | |||
Proven Reserves | — | — | — | 19 | 1.56 | 0.3 | ||
Probable Reserves | 7,432 | 1.68 | 124.6 | 10,996 | 1.76 | 193.9 | ||
Proven & Probable Reserves | 7,432 | 1.68 | 124.6 | 11,016 | 1.76 | 194.2 | ||
Measured Resources | — | — | — | 4 | 1.77 | 0.1 | ||
Indicated Resources | 7,527 | 1.86 | 140.0 | 10,439 | 2.08 | 217.0 | ||
Measured & Indicated Resources | 7,527 | 1.86 | 140.0 | 10,442 | 2.08 | 217.1 | ||
Inferred Resources | 4,476 | 2.12 | 94.8 | 6,095 | 2.14 | 130.1 |
Note: Mineral resource and reserve estimates were prepared in accordance with the CIM Standards and CIM Guidelines, using geostatistical and/or classical methods, plus economic and mining parameters appropriate for the deposit. Please see the 2018 Technical Report, 2019 Technical Report or 2020 Technical Report, as applicable, for a discussion on the assumptions, parameters and methods used to estimate the mineral resources and reserves. 2021 mineral reserve and resource effective date of
NX Gold Mine
Updated mineral reserve and mineral resource estimates are effective as at
Grade shells using a value of 1.20 gpt gold were used to generate a 3D mineralization model of the
Mineral reserve estimates were prepared in accordance with the CIM Standards and the CIM Guidelines, using geostatistical and/or classical methods, plus economic and mining parameters appropriate for the deposit. Mineral reserves are the economic portion of the indicated mineral resources. Mineral reserve estimates include operational dilution of 17.4% plus planned dilution of approximately 8.5% within each stope for room-and-pillar mining areas and operational dilution of 3.2% plus planned dilution of 21.2% for cut-and-fill mining areas. Assumes mining recovery of 92.5% and 94.7% for room-and-pillar and cut-and-fill areas, respectively. Practical mining shapes (wireframes) were designed using geological wireframes / mineral resource block models as a guide.
Please refer to the NI 43-101 technical report entitled "Mineral Resource and Mineral Reserve Estimate of the
In
- Up to
US$5 million payable, available through the end of 2024, based upon the number of ounces of gold added to the Measured and Indicated mineral resource categories as compared to the mineral resources as of the effective date of the NX Gold transaction at a rate ofUS$20 per ounce; - Up to
US$5 million payable, available from 2022 through the end of 2024, based upon completion of planned meters of drilling within the exploration concessions of theNX Gold Mine at a rate ofUS$100 per meter; and US$5 per ounce of gold delivered under the NX Gold transaction payable to the Company as contribution towards ongoing ESG initiatives within the area of influence of the mine.
Boa Esperança
Please refer to the NI 43-101 technical report entitled "Boa Esperança Project NI 43-101 Technical Report on Feasibility Study Update" dated
QUALITY ASSURANCE / QUALITY CONTROL
Current QA/QC Program
At the
At the
QA/QC Validation
The QA/QC validation process undertaken for the 2021 updated mineral resource and reserve estimates for the
ABOUT
ERO COPPER CORP.
/s/ | For further information contact: |
(604) 335-7504 | |
info@erocopper.com |
CAUTION REGARDING FORWARD LOOKING INFORMATION AND STATEMENTS
This press release contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation (collectively, “forward-looking statements”). Forward-looking statements include statements that use forward-looking terminology such as “may”, “could”, “would”, “will”, “should”, “intend”, “target”, “plan”, “expect”, “budget”, “estimate”, “forecast”, “schedule”, “anticipate”, “believe”, “continue”, “potential”, “view” or the negative or grammatical variation thereof or other variations thereof or comparable terminology. Such forward-looking statements include, without limitation, statements with respect to mineral reserve and mineral resource estimates; targeting additional mineral resources and expansion of deposits; the Company’s expectations, strategies and plans for the
Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this press release including, without limitation, assumptions about: continued effectiveness of the measures taken by the Company to mitigate the possible impact of COVID-19 on its workforce and operations; favourable equity and debt capital markets; the ability to raise any necessary additional capital on reasonable terms to advance the production, development and exploration of the Company’s properties and assets; future prices of copper and other metal prices; the timing and results of exploration and drilling programs; the accuracy of any mineral reserve and mineral resource estimates; the geology of the
Furthermore, such forward-looking statements involve a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of the Company to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation the risk factors listed under the heading “Risk Factors” in the Annual Information Form for the year ended
Although the Company has attempted to identify important factors that could cause actual actions, events, conditions, results, performance or achievements to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events, conditions, results, performance or achievements to differ from those anticipated, estimated or intended.
The Company cautions that the foregoing lists of important assumptions and factors are not exhaustive. Other events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward-looking statements contained herein. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or results or otherwise, except as and to the extent required by applicable securities laws.
CAUTIONARY NOTES REGARDING MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES
In accordance with applicable Canadian securities regulatory requirements, all mineral reserve and mineral resource estimates of the Company disclosed in this press release have been prepared in accordance with NI 43-101 and are classified in accordance with CIM Standards. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. NI 43-101 differs significantly from the disclosure requirements of the
Mineral resources which are not mineral reserves do not have demonstrated economic viability. Pursuant to the CIM Standards, mineral resources have a higher degree of uncertainty than mineral reserves as to their existence as well as their economic and legal feasibility. Inferred mineral resources, when compared with measured or indicated mineral resources, have the least certainty as to their existence, and it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Pursuant to NI 43-101, inferred mineral resources may not form the basis of any economic analysis. Accordingly, readers are cautioned not to assume that all or any part of a mineral resource exists, will ever be converted into a mineral reserve, or is or will ever be economically or legally mineable or recovered.
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