GOLD$1722.02  (+3.78)

Mineral Resource & PFS

Historical Resource1

Volcan Project
As of Dec. 31, 2020
Measured 105,918,000 0.738 63 2,513.1 216.1
Indicated 283,763,000 0.698 60 6,368.0 547.6
Total 389,681,000 0.709 61 8,881.1 763.8
Inferred 41,553,000 0.502 43 670.7 57.7

1 Refer to Hochschild Mining’s statement of attributable metal resources as at December 31, 2020.

Pre-Feasibility Study Highlights2

Prior to the acquisition of Andina Minerals by Hochschild’s, during 2007-2011 over 150,000 meters of drilling was completed which concluded in a prefeasibility study dated January 31, 2011 that set out the following: 

Parameter   Value
Gold Price US$/oz $1,330
Throughput – Heap Leach
Throughput – Mill/CIL
Ore Mined
Ore Grade
g/t Au
Strip Ratio W:O 2.48
Recovery % 66
Gold Recovered ounces 4,324,000
Mine Life Years 15
Initial Capital Cost US$M $550.6
Sustaining Capital Cost US$M $249.1
AISC US$/oz $680
Post-tax NPV@5% US$M $920

2 Refer to the “Technical Report on the Results of the Pre-Feasibility Study on the Dorado Deposits, Volcan Gold Project Region III, Chile” dated January 31, 2011

As per Hochschild Mining statement of attributable metal resources at Dec 31, 2020

Ore reserves and mineral resources estimates

Hochschild Mining plc reports its mineral resources and reserves estimates in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2012 edition (“the JORC Code”). This establishes minimum standards, recommendations and guidelines for the public reporting of exploration results and mineral resources and reserves estimates. In doing so it emphasises the importance of principles of transparency, materiality and confidence. The information on ore reserves and mineral resources on pages 57 to 59 were prepared by or under the supervision of Competent Persons (as defined in the JORC Code). Competent Persons are required to have sufficient relevant experience and understanding of the style of mineralisation, types of deposits and mining methods in the area of activity for which they are qualified as a Competent Person under the JORC Code. The Competent Person must sign off their respective estimates of the original mineral resource and ore reserve statements for the various operations and consent to the inclusion of that information in this report, as well as the form and context in which it appears.

Hochschild Mining plc employs its own Competent Person who has audited all the estimates set out in this report. Hochschild Mining Group companies are subject to a comprehensive programme of audits which aim to provide assurance in respect of ore reserve and mineral resource estimates. These audits are conducted by Competent Persons provided by independent consultants. The frequency and depth of an audit depends on the risks and/or uncertainties associated with that particular ore reserve and mineral resource, the overall value thereof and the time that has lapsed since the previous independent third-party audit.

The JORC Code requires the use of reasonable economic assumptions. These include long-term commodity price forecasts (which, in the Group’s case, are prepared by ex-house specialists largely using estimates of future supply and demand and long-term economic outlooks).

Ore reserve estimates are dynamic and are influenced by changing economic conditions, technical issues, environmental regulations and any other relevant new information and therefore these can vary from year-to-year. Mineral resource estimates can also change and tend to be influenced mostly by new information pertaining to the understanding of the deposit and secondly the conversion to ore reserves.

The estimates of ore reserves and mineral resources are shown as at 31 December 2020, unless otherwise stated. Mineral resources that are reported include those mineral resources that have been modified to produce ore reserves. All tonnage and grade information has been rounded to reflect the relative uncertainty in the estimates; there may therefore be small differences. The prices used for the reserves calculation were: Au Price: US$1,800 per ounce and Ag Price: US$20.0 per ounce.