Reserves and Resources (as of December 31, 2010)
| Reserves Proven & Probable | |||||
|---|---|---|---|---|---|
Description |
Tonnes |
Ag g/t |
Au g/t |
Ag oz |
Au oz |
| Proven | |||||
| Guanacevi | 576,000 | 313 | 0.62 | 5,796,000 | 11,400 |
| Guanajuato | 141,000 | 189 | 2.50 | 856,000 | 11,300 |
| Total Proven | 717,000 | 289 | 0.98 | 6,652,000 | 22,700 |
| Probable | |||||
| Guanacevi | 815,800 | 237 | 0.40 | 6,219,000 | 10,500 |
| Guanajuato | 100,000 | 158 | 2.20 | 508,000 | 7,100 |
| Total Probable | 915,800 | 228 | 0.60 | 6,727,000 | 17,600 |
| Total Proven & Probable | 1,632,800 | 255 | 0.77 | 13,379,000 | 40,300 |
| Resources Indicated | |||||
|---|---|---|---|---|---|
| Description | Tonnes | Ag g/t | Au g/t | Ag oz | Au oz |
| Guanacevi | 1,653,700 | 258 | 0.56 | 13,719,000 | 29,600 |
| Guanajuato | 1,443,000 | 163 | 2.18 | 7,554,000 | 101,100 |
| Total Indicated | 3,096,700 | 214 | 1.31 | 21,273,000 | 130,700 |
| Total Indicated | 3,096,700 | 214 | 1.31 | 21,273,000 | 130,700 |
| Resources Inferred | |||||
|---|---|---|---|---|---|
| Description | Tonnes | Ag g/t | Au g/t | Ag oz | Au oz |
| Guanacevi | 1,426,000 | 261 | 0.60 | 11,982,000 | 27,500 |
| Guanajuato | 1,475,000 | 155 | 2.11 | 7,345,000 | 100,000 |
| Total Inferred | 2,901,000 | 207 | 1.37 | 19,327,000 | 127,500 |
Silver-Gold-Lead-Zinc Resources (as of December 31, 2010)
| Resources Indicated | |||||||
|---|---|---|---|---|---|---|---|
| Description | Tonnes | Ag g/t | Au g/t | Ag oz | Au oz | Pb % | Zn% |
| Guanacevi | 655,200 | 166 | 0.21 | 3,497,000 | 4,500 | 0.61 | 1.02 |
| Parral | 1,631,000 | 49 | 0.90 | 2,590,000 | 47,200 | 2.87 | 2.86 |
| Total Indicated | 2,286,200 | 83 | 0.70 | 6,087,000 | 51,700 | 2.22 | 2.33 |
| Resources Inferred | |||||||
|---|---|---|---|---|---|---|---|
| Description | Tonnes | Ag g/t | Au g/t | Ag oz | Au oz | Pb % | Zn% |
| Guanacevi | 644,100 | 125 | 0.14 | 2,582,000 | 3,000 | 1.15 | 2.13 |
| Parral | 1,302,900 | 63 | 0.88 | 2,659,000 | 36,900 | 2.55 | 2.28 |
| Arroyo Seco | 738,200 | 220 | 0.07 | 5,221,000 | 1,700 | 0.65 | 0.18 |
| Total Inferred | 2,685,200 | 121 | 0.48 | 10,462,000 | 41,600 | 1.69 | 1.67 |
Notes:
1. Reserve cutoff at Guanacevi is 135 g/t Ag
2. Reserves cutoff at Guanajuato is 102 g/t Ag
3. Mining mining width is 1.5 meters
4. Dilution is 15% after it has been diluted to a minimum mining width if required
5. Resources cutoff for the Guanajuato and Guanacevi projects is 100 Ag eq
6. Resources Silver equivalent is 50:1 for Silver to Gold
7. Reserve Silver equivalent is 62:1 for Silver to Gold which is the three year trailing average ratio as required in reserve estimation
8. At the Paral project a cut off using a NSR of $40 is used with the prices listed below
9. The cutoff used for Arroyo Seco was 100 g/t Ag
Net Smelter Return (NSR) Cut-off Parameters for the Parral Project
| Description | Parameter |
|---|---|
| Gold Price | US $1,000 per oz |
| Silver Price | US $16 per oz |
| Lead Price | US $0.65 per lb |
| Zinc Price | US $0.65 per lb |
| Gold Recovery (Overall) |
75% |
| Silver Recovery (Overall) |
71% |
| Lead Recovery (Overall) |
80% |
| Zinc Recovery (Overall) |
74% |
| Smelter Terms | Based on generic contract |
These reserve and resource statements were classified following the definitions and guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum CIM standards and definitions on Mineral Resources and Reserves and the guidelines of NI 43-101.
