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Reserves and Resources

Proven and Probable Mineral Reserves

Mine/Project Proven Probable Proven and Probable
Tonnes (kt) Grade (g/t) Contained Gold (koz) Tonnes (kt) Grade (g/t) Contained Gold (koz) Tonnes (kt) Grade (g/t) Contained Gold (koz)
Los Filos 26,168 0.91 768 78,052 1.44 3,626 104,220 1.31 4,395
Leach Pad Inventory           114     114
RDM 5,647 0.73 133 19,079 1.08 656 24,726 0.99 789
Fazenda 2,632 1.77 150 2,756 1.91 169 5,387 1.84 319
Pilar 961 1.51 47 6,044 1.13 219 7,005 1.18 266
Santa Luz 25,000 1.43 1,153 3,200 1.03 106 28,200 1.39 1,259
Total Proven and Probable     2,251     4,890     7,142

Notes to Proven and Probable Mineral Reserves:

  1. CIM (2014) definitions were followed for Mineral Reserves.
  2. The Los Filos effective date was October 31, 2018. Mineral Reserves for Bermejal Underground were prepared by SRK Consulting (Canada) Inc. Mineral Reserves for all other deposits were prepared by the Los Filos mine and reviewed by SRK. Mineral Reserves are quoted using a NSR break-even cut-off grade approach with minimum block NSR of $149.4/t for Bermejal underground. Cut-off grade for the Los Filos underground is 2.59 g/t. Mineral reserves for Los Filos, Bermejal and Guadalupe open pits are based on variable break-even cut-offs for ore revenue as generated by process destination and recoveries. Variables for revenue calculation include process cost, recovery, and estimated gold, copper and sulphur grades.
  3. The RDM effective date was May 31, 2018. Mineral Reserves are reported at a cut-off grade of 0.40 g/t Au.
  4. The Fazenda effective date was May 31, 2018. Mineral Reserves are reported at a cut-off grade of 1.29 g/t Au for underground and 0.64 g/t Au to 0.72 g/t Au for open pit material. 
  5. The Pilar effective date was May 31, 2018. Mineral Reserves are estimated at a cut-off grade of 1.53 g/t Au for Pilar, 1.20 g/t Au for Maria Lázara and 0.54 g/t Au for Três Buracos.
  6. The Santa Luz effective date was October 22, 2018. Mineral Reserves are reported at a cut-off grade of 0.53 g/t Au for dacite-leachable, 0.39 g/t Au for dacite-high-sulphide, and 0.60 g/t Au for carbonaceous ore.
  7. Mineral Reserves are based on Measured and Indicated Mineral Resources.
  8. Metal price assumption for gold was US$1,200/oz.
  9. The exchange rate used for Los Filos was MEX:USD of 20:1. The exchange rate used for RDM, Fazenda, Pilar and Santa Luz was BRL:USD of 3.7:1
  10. Tonnage and grade measurements are in metric units. Contained gold is reported as troy ounces.
  11. Summation errors may be present due to rounding.

Measured and Indicated Mineral Resources

Mine Measured Indicated Measured and Indicated
Tonnes (kt) Grade (g/t) Contained Gold (koz) Tonnes (kt) Grade (g/t) Contained Gold (koz) Tonnes (kt) Grade (g/t) Contained Gold (koz)
Los Filos 114,631 0.77 2,851 211,678 1.02 6,922 326,309 0.93 9,773
RDM 3,195 0.77 79 36,107 1.02 1,181 39,303 1.00 1,259
Fazenda 4,870 2.17 339 2,670 2.55 219 7,540 2.30 558
Pilar 2,389 3.50 269 13,479 2.13 922 15,868 2.33 1,191
Santa Luz 31,200 1.36 1,364 9,700 1.96 612 40,900 1.50 1,976
Total Measured and Indicated     4,902     9,856     14,757

Inferred Mineral Resources

Mine Tonnes (kt) Grade (g/t) Contained Gold (koz)
Los Filos 98,204 0.83 2,633
RDM 8,305 1.50 401
Fazenda 6,040 2.45 476
Pilar 20,399 3.21 2,108
Santa Luz 7,700 2.02 501
Total Inferred     6,119

Notes to Measured, Indicated and Inferred Mineral Resources:

  1. Mineral Resources are inclusive of Mineral Reserves.
  2. No dilution or recovery is applied to Mineral Resources reported for Los Filos. Mineral Reserves for Fazenda, RDM, Pilar and Santa Luz include dilution and mining recovery factors and are added to the .
  3. Gold price of US$1,400/oz used for Los Filos; $1,500/oz for RDM, Fazenda, Pilar, and Santa Luz.
  4. Tonnage and grade measurements are in metric units. Contained gold ounces are reported as troy ounces.
  5. Summation errors may be present due to rounding.
  6. The effective date for Los Filos was October 31, 2018. The Qualified Persons for Mineral Resources are Dr. Gilles Arseneau (Associate Consultant with SRK Consulting (Canada) Inc., and independent of the Company) for Los Filos Open Pit, Bermejal Open Pit and Bermejal Underground, and Doug Reddy (Leagold, SVP Technical Services) for Los Filos Underground mine.
  7. The effective date for RDM was May 31, 2018. The Qualified Persons for Mineral Resources are Emerson Ricardo Re, MSc, AusIMM CP Geo, Registered Member of Chilean Mining Commission (Leagold, Corporate Director of Mineral Resources) and Jorge Augusto Basilio Fernandes, AusIMM CP Geo, (Leagold, Mineral Resources Coordinator).
  8. The effective date for Fazenda was May 31, 2018. The Qualified Persons for Mineral Resources are Emerson Ricardo Re, MSc, AusIMM CP Geo, Registered Member of Chilean Mining Commission (Leagold, Corporate Director of Mineral Resources) and Carlos Henrique Barbosa Pires, AusIMM CP Geo, (Leagold, Mineral Resources Coordinator).
  9. The effective date for Pilar was May 31, 2018. The Qualified Persons for Mineral Resources are Emerson Ricardo Re, MSc, AusIMM CP Geo, Registered Member of Chilean Mining Commission (Leagold, Corporate Director of Mineral Resources) and Jorge Augusto Basilio Fernandes, AusIMM CP Geo, (Leagold, Mineral Resources Coordinator).
  10. The effective date for Santa Luz was October 22, 2018. The Qualified Person for Mineral Resources is Mark B. Mathisen, CPG-11648 SME Registered Member. Senior Geologist, Roscoe Postle Associates.

Sources of Technical Information

Mineral Reserves for the Los Filos Mine are derived from the independent Feasibility Study reported in Leagold’s news release dated January 16, 2019. The Company anticipates filing a technical report prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101) in early March (Los Filos Technical Report) to support the disclosure of the results of the Feasibility Study.

For further information regarding the mineral resource and mineral reserve estimates at RDM, please see the Company’s technical report prepared in accordance with NI 43-101 entitled “Technical Report on the Riacho dos Machados Gold Mine, Minas Gerais, Brazil” by Roscoe Postle Associates Inc. (RPA), and dated November 20, 2018 with an effective date of May 31, 2018 (RDM Technical Report).

For further information regarding the mineral resource and mineral reserve estimates at Fazenda, please see the Company’s technical report prepared in accordance with NI 43-101 entitled “Technical Report on the Fazenda Brasileiro Mine, Bahia State, Brazil” by RPA dated November 26, 2018 with an effective date as of May 31, 2018 (Fazenda Technical Report).

For further information regarding the mineral resource and mineral reserve estimates at Pilar, please see the Company’s technical report prepared in accordance with NI 43-101 entitled “Technical Report on the Pilar Operations, Goiás State, Brazil” by RPA and dated December 20, 2018 with an effective date of May 31, 2018 (Pilar Technical Report).

For further information regarding the mineral resource and mineral reserve estimates at Santa Luz, please see the Company’s technical report prepared in accordance with NI 43-101 entitled “Technical Report on the Santa Luz Project, Bahia State, Brazil” by RPA and dated November 14, 2018 with an effective date of October 22, 2018 (Santa Luz Technical Report).

Qualified Persons

The technical information contained in the Expanded Feasibility Study and was prepared by and, or, reviewed and approved by the following independent “Qualified Persons” as defined by NI 43-101, and they have reviewed and approved the contents of this news release.

Qualified Persons Company Scope / Responsibility
Dr. Gilles Arseneau, P.Geo. SRK Consulting (Canada) Inc. Mineral Resources
Neil Winkelmann, FAusIMM Bermejal underground mine production, cost estimates and Mineral Reserves. Overall project risk assessment, implementation and economics, overall report compilation
Timothy Olson, FAusIMM SRK Consulting
(US) Inc.
Los Filos underground, Los Filos, Bermejal and Guadalupe open pit mines production, cost estimates and Mineral Reserves
Eric Olin, RM – SME Heap leach metallurgical testwork review and interpretations, heap leach process plant review and cost estimates
Neil Lincoln,
P.Eng.
Lycopodium
Minerals
Canada Ltd.
CIL metallurgical testwork management and interpretation, process plant and related process infrastructure design, process capital and operating cost estimates, risk assessment, project implementation
David Nicholas, P.E. Call & Nicholas Bermejal underground mine geotechnical