Resource Estimates

La Plata - Colorado, USA

Metallic Minerals announced an updated NI 43-101 mineral resource estimate for the La Plata project in a May 2023, representing a 25% increase in tonnage based on an additional 1,730 meters of diamond drilling completed in 2022. Inferred mineral resources at the Allard deposit now total 1,211 million pounds of copper (“Mlbs”) and 17.6 million ounces (“Moz”) of silver in a constrained model with 147.3 million tonnes at an average grade of 0.41% Copper Equivalent (“CuEq") (0.37% Cu and 3.72 g/t Ag) using a 0.25% CuEq cut-off grade.

The expansion from the inaugural resource to the current 1,317 Mlbs CuEq is largely driven by the major discovery in drill hole LAP22-04 (drilled in 2022), which intersected 816 meters of 0.41% CuEq recovered (0.30% Cu, 2.47 g/t Ag, 0.038 g/t Au, 0.055 g/t Pd and 0.093 g/t Pd) bottoming in 5.39% CuEq recovered over 5.2 m (2.44% Cu, 18.7 g/t Ag, 5.0 g/t Au+PGE).

The greater La Plata silver-gold-copper project remains underexplored and open to new discoveries of both additional copper porphyry centers as well as high-grade epithermal silver and gold systems.

La Plata Inferred Mineral Resource Estimate at a Base Case Cut-off Grade of 0.25% CuEq with Grade and Contained Metal Sensitivity Analysis at Various CuEq Cut-off Grades¹

Keno Silver - Yukon, Canada

An inaugural mineral resource estimate announced in February 2024 shows the Keno Silver project to host 18.16 million ounces silver equivalent in four shallow deposits, each of which remains completely open at depth and along strike (click here for full mineral resource estimate). Subsequent campaigns, anticipated to commence in the 2024 field season, will focus on resource expansion through the drilling of extensions to current deposits, definition drilling of very prospective early-stage drilled targets to new resources, as well as targeting new discoveries at high-priority targets that have yet to be drill tested.

La Plata Footnotes

1.) The 2023 Mineral Resource Estimate has been estimated in conformity with CIM Estimation of Mineral Resource and Mineral Reserve Best Practices Guidelines (2019) and current CIM Definition Standards - For Mineral Resources and Mineral Reserves (2014). The constrained Mineral Resources are reported at a base case cut-off grade of 0.25% CuEq, based on metal prices of $3.60/lb Cu and $22.50/oz Ag, assumed metal recoveries of 90% for Cu and 65% for Ag, a mining cost of US$5.30/t rock and processing and G&A cost of US$11.50/t mineralized material. Cu Eq calculations are based on 100% recovery of all metals using the same metal prices used for the resource calculation. All figures are rounded to reflect the relative accuracy of the estimate.

The current Mineral Resources are not Mineral Reserves as they do not have demonstrated economic viability. The quantity and grade of reported Inferred Resources in this Mineral Resource Estimate are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as Indicated or Measured. However, based on the current knowledge of the deposits, it is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

Keno Silver Footnotes

Notes to reported values:

1. The base-case Ag Eq Cut-off grades consider metal prices of $22.50/oz Ag, $1,800/oz Au, $1.00/lb Pb and $1.30/lb Zn, and considers metal recoveries of 95% for Ag, 50% for Au, 94% for Pb and 88% for Zn.
2. Ag Eq = Ag ppm + (((Au ppm x Au price/gram) + (Pb% x Pb price/t) + (Zn% x Zn price/t))/Ag price/gram) at the above assumed metal prices.

Keno Deposit Mineral Resource Estimate Notes:

(1) The effective date of the Keno deposit Mineral Resource Estimate is February 1, 2024.
(2) The Mineral Resource Estimates were estimated by Allan Armitage, Ph.D., P. Geo. of SGS Geological Services and is an independent Qualified Person as defined by NI 43-101.
(3) The classification of the current Mineral Resource Estimate into Inferred mineral resources is consistent with current 2014 CIM Definition Standards - For Mineral Resources and Mineral Reserves.
(4) All figures are rounded to reflect the relative accuracy of the estimate and numbers may not add due to rounding.
(5) The mineral resources are presented undiluted and in situ, constrained by continuous 3D wireframe models, and are considered to have reasonable prospects for eventual economic extraction.
(6) Mineral resources which are not mineral reserves do not have demonstrated economic viability. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that most Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
(7) The Keno mineral resource estimate is based on a validated database which includes data from 293 surface diamond, RC and RAB drill holes totalling 17,654.63 m, and 292 surface and underground channels (Formo) for 450.43 m. The resource database totals 5,429 assay intervals representing 6,734.09 m of data.
(8) The mineral resource estimate is based on 29 three-dimensional (“3D”) resource models for Fox (19), Caribou (4), Formo (4) and Homestake (2), constructed in Leapfrog. Grades for Ag, Au, Pb and Zn were estimated for each mineralization domain using 1.5 metre capped composites assigned to that domain. To generate grade within the blocks, the inverse distance squared (ID2) interpolation method was used for all domains.
(9) Average density values were assigned to each domain based on a database of 54 samples.
(10) Based on their size, shape and orientation, it is envisioned that the Caribou, Fox and Homestake deposits of the Keno project may be mined using open-pit mining methods. Mineral resources are reported at a base case cut-off grade of 50 g/t Ag Eq. The in-pit Mineral Resource grade blocks are quantified above the base case cut-off grade, above the constraining pit shell, below topography and within the constraining mineralized domains (the constraining volumes).
(11) The results from the pit optimization, using the pseudoflow optimization method in Whittle 4.7.4, are used solely for the purpose of testing the “reasonable prospects for economic extraction” by an open pit and do not represent an attempt to estimate mineral reserves. There are no mineral reserves on the Property. The results are used as a guide to assist in the preparation of a Mineral Resource statement and to select an appropriate resource reporting cut-off grade.
(12) It is envisioned that the Formo deposit may be mined using underground mining methods. Mineral resources for Formo are reported at a base case cut-off grade of 150 g/t Ag Eq. The mineral resource grade blocks were quantified above the base case cut-off grade, below surface and within the constraining mineralized wireframes (considered mineable shapes).
(13) Based on the size, shape, general thickness and orientation of the Formo mineralized structures, it is envisioned that the deposits may be mined using a combination of underground mining methods including sub-level stoping (SLS) and/or cut and fill (CAF) mining.
(14) The base-case Ag Eq Cut-off grade considers metal prices of $22.50/oz Ag, $1,800/oz Au, $1.00/lb Pb and $1.30/lb Zn, and considers metal recoveries of 95% for Ag, 50% for Au, 94% for Pb and 88% for Zn.
(15) The pit optimization and base case cut-off grade of 50 g/t Ag Eq considers a mining cost of US$2.20/t mined, and processing, treatment, refining, G&A and transportation cost of USD$25.00/t of mineralized material.
(16) The underground base case cut-off grade of 150 g/t Ag Eq a mining cost of US$65.00/t mined, and processing, treatment, refining, G&A and transportation cost of USD$25.00/t of mineralized material.
(17) The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.