The historic pre-feasibility study (the “Historical Estimate”) for the Contact Copper Project was prepared by Hard Rock Consulting, LLC for International Enexco Limited (Enexco). This Historical Estimate updates the mineral resource estimate from the “NI 43-101 Technical Report on the Contact Copper Project Nevada” (October 2012), prepared by 3L Resources, Ltd.
The Historical Estimate indicates 58 million tonnes of “proven” 0.23% copper and 83 million tonnes of “probable” 0.21% copper for a total reserve estimate of 141 million tonnes of 0.22% copper at a 0.07% copper cut-off grade. Faraday Copper is reviewing project economics that suggests higher cut-offs of 0.15% and 0.20% copper, as reported in a previous estimate.
Faraday Copper does not consider the noted Resource estimate as 'current' as a qualified person (as defined in National Instrument 43-101 (“NI 43-101”)) has not completed sufficient work to classify the historical estimate as current mineral resources or reserves.
Mineral Resource Estimate Reported at 0.07% Copper (Cu) Cut-off
| CATEGORY | CU% | TONS (000) | POUNDS CU (000) |
|---|---|---|---|
| Measured | 0.21 | 75,473 | 313,968 |
| Indicated | 0.19 | 137,640 | 517,526 |
| Total Measured + Indicated | 0.20 | 213,113 | 831,494 |
| Inferred | 0.20 | 12,982 | 52,188 |
Mineral Reserve Estimate Reported at 0.07% Copper (Cu) Cut-off
| CATEGORY | CU% | TONS (000) | POUNDS CU (000) |
|---|---|---|---|
| Proven | 0.23 | 57,678 | 263,249 |
| Probable | 0.21 | 83,416 | 348,499 |
| Total Proven + Probable | 0.22 | 141,094 | 611,748 |
The Historic Mineral Resource for this report is pit-constrained on the Global Resource and contained within a Lerchs-Grossman pit shell based on a copper price of $4.00 per pound and operating cost and recovery parameters.