Current ResourcesBased on 15 g/t Ag cutoff and Prudent Open-Pit Constraints - July 12 2010
Higher Grade Core Contained in Smaller Open Pit Shapes Based on 19 g/t Ag cutoff and Prudent Open-Pit Constraints - July 12 2010
The updated resource estimation was completed in July 2010 by Independent Mining Consultants (IMC) of Tucson, Arizona, with John Marek, P.E. acting as the Independent Qualified Person under NI 43-101. The resource estimate is based upon 348 diamond drill holes totaling 60,458 meters completed through June. The estimation is presented below using two cutoff grades. The global resource assumes a $16 per ounce silver price applied to mineralized material contained within a pit determined by 70% silver recoveries under heap leaching and operating costs established in the Preliminary Economic Assessment ("PEA") prepared by IMC in April 2009 (see news release dated 20 April 2009). Lead and zinc are not recovered in heap leaching and not considered in the resource estimation. Lead and zinc grades are reported as they are elevated and could become economically significant with additional exploration. To determine the final pit limits for the higher grade area $13 per ounce for silver was used. This results in a pit that generates higher grades and less tonnes than the global resource. Regulatory Footnotes: All of Bear Creek's exploration programs and pertinent disclosure of a technical or scientific nature are prepared by or prepared under the direct supervision Marc Leduc, P.Eng., COO and/or the President and CEO, Andrew Swarthout, P.Geo., Christian Rios, P.Geo., Exploration Manager who serve as the Qualified Persons under the definitions of NI 43-101. The block model estimate was prepared by Independent Mining Consultants of Tucson Arizona. John Marek P.E. acted as the independent qualified person as defined by Canada's National Instrument 43-101. Additionally the methods used in determining and reporting the resources are consistent with the CIM Best Practices Guidelines for the estimation of mineral resources and mineral reserves. The method used in the resource calculation is equivalent to the method used in the resource calculation shown in our, May 26, 2009 Technical Report. For this resource estimate we have used metal prices based on a 3-year backward average and a 2-year forward price based on the current metal markets, Assumptions used in the resource model by IMC. Silver Price= $16.00/oz; Silver Recovery= 70%; Zinc Recovery= 0%; Lead Recovery= 0%; Smelter charges: Silver= $0.40 per ounce; Mining Costs per tonne= $1.67; Process plus G&A cost per tonne= $5.30; Pit Slopes= 40 degrees in all rock types. All diamond drilling has been performed using HQ diameter core with recoveries averaging greater than 95%. Core is logged and split on site under the supervision of Bear Creek geologists. Sampling is done on two-meter intervals and samples are transported by Company staff to Juliaca, Peru for direct shipping to ALS Chemex, Laboratories in Lima, Peru. ALS Chemex is an ISO 9001:2000-registered laboratory and is preparing for ISO 17025 certification. Silver, lead, and zinc assays utilize a multi-acid digestion with atomic absorption ("ore-grade assay method"). The QC/QA program includes the insertion every 20th sample of known standards prepared by SGS Laboratories, Lima. A section in Bear Creek's website is dedicated to sampling, assay and quality control procedures. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||