The historical mineral resource estimate (the “Historical Estimate”) was published in a technical report entitled “Copper Creek 2012 Mineral Resource Update, Pinal County, Arizona, USA, Technical Report” prepared for Redhawk by Independent Mining Consultants Inc., dated and filed by Redhawk on SEDAR on June 25, 2012.
Faraday Copper does not consider the Historical Estimate as 'current', as a qualified person (as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”)) has not completed sufficient work to classify the historical estimate as current mineral resources or reserves.
The Historical Estimate was calculated using a 0.20% copper equivalent (“CuEq”) cut-off grade. The Historical Estimate is based on metal prices of US$3.00/lb CuEq and contained within an open pit geometry using industry comparable estimates for direct mining, milling, and G&A costs. The ratios for calculating CuEq are based upon US$2.75/lb Cu, US$12.00/lb Mo, and US$20.00/oz Ag and recoveries of 90% for Cu, 80% for Mo, and 90% for Ag. Totals may not add due to rounding.