Resource & Reserve Estimates as at Nov 2017
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Notes:

  1. Resources are adjusted for Echo's 70% ownership interest
  2. Resources estimated by CoxsRocks (refer to Competent Persons Statements) in accordance with JORC Code 2012. For full Mineral Resource estimate details refer to the Metaliko Resources Limited announcement to ASX on 1 September 2016. Echo is not aware of any new information or data that materially affects the information included the previous announcement, and all material assumptions and technical parameters underpinning mineral resource estimates in the previous announcement continue to apply and have not materially changed.
  3. Resources estimated by HGS (refer to Competent Persons Statements) in accordance with JORC Code 2012, for full details of the Mineral Resource estimate refer to the Metaliko Resources Limited announcement to ASX on 23 August 2016. Echo is not aware of any new information or data that materially affects the information included the previous announcement, and all material assumptions and technical parameters underpinning mineral resource estimates in the previous announcement continue to apply and have not materially changed.
  4. Resources estimated by Mr Lynn Widenbar (refer to Competent Persons Statements) in accordance with JORC Code 2012, for full details of the Mineral Resource estimate refer to the Echo Resources Limited announcement to ASX on 23 November 2016 & 7 September 2017. Echo Resources Limited is not aware of any new information or data that materially affects the information included the previous announcement, and all material assumptions and technical parameters underpinning mineral resource estimates in the previous announcement continue to apply and have not materially changed.
  5. Resource estimates include Bills Find, Shady Well, Orpheus, Empire & Tipperary Well and were estimated by Golders (refer to Competent Persons Statements) in accordance with JORC Code 2004, for full details of the Mineral Resource estimates refer to the Echo Resources Limited prospectus released to ASX on 10 April 2006.
  6. Reserve estimated by Mr Stuart Cruickshanks (refer to Competent Persons Statements) in accordance with JORC Code 2012, for full details of the Ore Reserve estimate refer to the Echo Resources Limited announcement to ASX on 27 November 2017. Echo Resources Limited is not aware of any new information or data that materially affects the information included the previous announcement, and all material assumptions and technical parameters underpinning Ore Reserve estimate in the previous announcement continue to apply and have not materially changed.
  7. Mineral Resources are inclusive of Ore Reserves.

 

 

In November 2017, Echo announced that ongoing project studies delivered a JORC 2012 compliant Ore Reserve for the Yandal Gold Project in Western Australia which comprised of:

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  Notes: 

  1. The Ore Reserves have been calculated at a gold price of AU$1600/oz and non-mining breakeven cut off grades of 0.6 g/t for the Orelia deposit and 0.8 g/t for the Julius deposit
  2. Mining dilution and losses have been included by modelling to a selective mining unit (SMU) with dimensions of 5m x 5m x 5m for the Orelia deposit and 2.5m x 5m x 2.5m for the Julius deposit
  3. Figures are rounded to reflect the appropriate level of confidence, apparent errors in totals may occur.

 Highlights from the Ore Reserve statement released included:

  • Ore Reserve (JORC 2012) of 15.6Mt @ 1.7 g/t containing 856,000 ounces of gold
  • The Reserve supports an 8.5 year life of mine based on an assumed throughput rate of 1.8Mtpa through the 100% owned Bronzewing Processing Hub
  • The Ore Reserve is contained within detailed pit designs with an overall waste to ore strip ratio of 6.3:1 and was estimated using a gold price assumption of A$1,600/ounce (US$1,200/oz)
  • Reserves form part of ongoing project studies due for completion early 2018
  • Studies are expected to include a staged development approach with Stage 1 delivering optimum cash flow from 6.3Mt @ 2.0 g/t Au for 407,000 ounces with a 5.1:1 strip ratio and AISC of A$1,034/oz 
  • The Ore Reserve is contained solely in the Julius and Orelia deposits and does not include any reserves from Echo’s other advanced prospects which include Wimbledon, Lowlands, Shady Well and potential extensions of the Lotus-Orelia system.

 Key economics released as part of the Ore Reserve statement include:

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  1. The Ore Reserves underpinning the above production target have been prepared by a Competent Person or Persons in accordance with the requirements of the JORC (2012) Code.  Refer to JORC tables, Qualifications and Competent Persons Statements.  Based on assumed throughput of 1.8Mtpa.
  2. C1 Cash Cost includes mining, processing operating costs, site administration costs, transport, refining charges.
  3. AISC = C1 cash cost, depreciation and amortisation (refurbishment), royalties, sustaining capital costs.

The staged development approach allows Echo sufficient time to optimise the large pit mine designs and processing options to further improve the economics of the ounces mined from Stage 2 in the later years of the project.  In addition, the delineation of any new reserves from outside of the Orelia and Julius deposits would be expected to further improve the life of mine schedule and add to the reserve base and mine life.

Please refer to the ASX Announcement titled Yandal Gold Project Ore Reserve Statement and released by Echo on 27 November 2017 for full details.