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<br /> <br />GOfl) Jffll. PROJECT <br />5- RESERVES <br />PAGE it <br /> <br /> <br /> <br />'I <br />Cunrently there aze both "indicated" and "inferred" reserves on the <br />Steen properties. These were calcu]ated from data from detailed <br />underground sampling programs carried out by the consulting geol- <br />ogist for Charles Steen, Russell R McLellan, in 1964 and confirmed <br />by Allan G Bird, Mark Steen's consultant, in 1982. <br />In 1982 R T Heard of R T Heard and Associates, computed the <br />reserves for Cosmos Resources Inc. These are summarised, using a <br />gold equivalent grade of 60 ounces of silver equal in value to 1 ounce <br />of gold, in Table 2. McLellan's surface dump and underground slope <br />fill reserves aze also shown in Table 2. <br />R T Heard used acct-off gold grade of 0.25 ounces per ton com- <br />pared to the previous estimates which assumed a 1.0 ounces per ton. <br />This increased the tonnage significantly but reduced the grade. <br />Heazd's total indicated and inferred ore reserve is 43,360 tons at a <br />gold equivalent grade of 1.14 ounces per ton. <br />' The 1943 US Bureau of Mines and the US Geological Survey defini- <br />tions of reserves aze as follows: <br />'I ~ <br />"Measured Ore" is ore for which tonnage is computed from <br />', dimensions revealed in outcrops, trenches, workings and drill <br />holes and for which the grade is computed from the results of <br />detailed sampling. The sites for inspection, sampling and <br />' measurement aze so closely spaced and the geologic character <br />~ so well defined that the size, shape and mineral content are <br />well established. The computed tonnage and grade aze judged <br />i r to be accurate within the limits which aze stated, and no such <br />'' limit is judged to differ from the computed tonnage or grade <br />by more than 20%. <br />'I In narrow vein mining it is accepted that this means a block of ore is <br />'I developed ready for mining with underground development on 4 sides <br />of the block appro>omately 150 feet vertically and up to 200 feet <br />along strike. <br />1~ <br />R. W. Turner C.Eng. <br />COnSUlting Mining Engineer <br />