Mineral Reserves

As at March 2016, the Proven and Probable Mineral Reserve for the Kalana Main open pit is 21.0 million tonnes at an average grade of 2.80 g/t Au containing 1.92 million ounces. The Probable Mineral Reserve for the Kalana Main Tailings is 0.7 million tonnes at an average gold grade of 1.80 g/t Au containing 44,000 ounces. Collectively, the Mineral Reserve for the Kalana Main Project is 21.7 million tonnes at an average grade of 2.80 g/t Au containing 1.96 million ounces.

Kalana Main Project Mineral Reserve1,2,3,4 (March 2016)

Deposit Classification Tonnes Grade Gold
    (Mt) (g/t Au) (koz)
Kalana Main Proven 5.1 3.00    489
Kalana Main Probable 15.9 2.80 1,431
Kalana Main Proven + Probable 21.0 2.80 1,920
Tailings Probable 0.7 1.80      44
Total Proven and Probable   21.7 2.80 1,964
1 – Mineral reserves are disclosed on a total project basis at 100% and defined using a gold price of $1200/oz. Avnel owns an 80% equity interest in SOMIKA, the Malian company that owns the Kalana Exploitation Permit.
2 – Depletion by production is to September 2015. There has been minor production from underground since September 2015.
3 – Mineral reserves are estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Definition Standards on Mineral Resources and Reserves prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.
4 – Some amounts in this table may not compute due to rounding and truncation.

The Kalana Main Mineral Reserve is a subset of the mineral resources described in the section below. Mineral reserves are estimated using modifying factors estimated to a level of accuracy required for a definitive feasibility study. Mineral reserves are classified in accordance with the CIM’s Definition Standards on Mineral Resources and Reserves as either Probable or Proven based upon the classification of the corresponding Mineral Resource and Snowden’s assessment of the modifying factors. Only the Indicated and Measured portions of the Mineral Resource have been reported in the Mineral Reserve. Neither the Inferred portion of the Mineral Resource or unclassified mineralization has been included in the Mineral Reserve.

Mineral Resources

A summary of the Company’s mineral resources as at March 2016 are presented below. Mineral resources are reported inclusive of mineral reserves.

In situ Kalana Mineral Resources1,2,3,4 (March 2016)

Mineral Resource Tonnes Grade Contained Gold
Classification (Mt) (g/t Au) (Moz)
Kalana Main Mineral Resources
Measured 9.5 4.2 1.28
Indicated 13.5 4.1 1.77
Measured + Indicated 23 4.14 3.06
Inferred (Kalana Main) 1.7 4.51 0.24
Additional  Mineral Resources
Indicated (Tailings) 0.7 1.8 0.04
Inferred (Kalanako) 0.4 5.55 0.07
1 – Mineral Resources are disclosed on a total project basis at 100%. Avnel owns an 80% equity interest in SOMIKA, the Malian company that owns the Kalana Exploitation Permit.
2 – Depletion by production is to September 2015. There has been minor production since September 2015.
3 – Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues. The Mineral Resources are estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Definition Standards on Mineral Resources and Reserves prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council, are reported above a cut-off grade 0.90 g/t Au, and are reported inclusive of the Mineral Reserve.
4 – The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.