Historical Mineral Resource Estimate
A historical Mineral Resource estimate (the “Historical MRE”) of the Aguablanca mineral deposit was produced for the RNR Shareholder Group in March 2023 by CRS Ingeneria Consultoria (“CRS”), Madrid, Spain, based on information collected from various historical exploration campaigns. The Historical MRE, prepared before Denarius Metals became interested in the Aguablanca Project and acquired its 50% interest, summarizes the estimated quantity, grade and mineral content of the underground deposit, below the current level of open pit exploitation. A qualified person has not done sufficient work to classify the Historical MRE as current mineral resources or mineral reserves, and the Company is not treating the Historical MRE as current mineral resources or mineral reserves or is using the Historical MRE for the basis of a production decision. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Based on a nickel price of US$10.00/lb, the following table summarizes the Historical MRE March 2023 by CRS IngeneriaConsultoria) for underground resources at the Aguablanca Project at a cutoff grade of 0.30% Ni:
| Classification | Tonnes (kt) | Ni Grade (%) | Ni Metal (kt) | Cu Grade (%) | Cu Metal (kt) | Co Grade (g/t) | Pt Grade (g/t) | Pd Grade (g/t) | Au Grade (g/t) |
|---|---|---|---|---|---|---|---|---|---|
| Measured | 3,632 | 0.67 | 24.41 | 0.59 | 21.59 | 259 | 0.30 | 0.26 | 0.16 |
| Indicated | 2,782 | 0.58 | 16.18 | 0.51 | 14.21 | 134 | 0.25 | 0.22 | 0.14 |
| Measured & Indicated | 6,414 | 0.63 | 40.59 | 0.56 | 35.79 | 150 | 0.28 | 0.24 | 0.15 |
| Inferred | 242 | 0.52 | 1.25 | 0.42 | 1.02 | 93 | 0.11 | 0.10 | 0.06 |
The Historical MRE is relevant to the Aguablanca Project as it reflects the known geologic assumptions of the mineral deposit. The geologic report prepared by CRS, which is the basis of the Historical MRE, is well written and the mineral estimation procedures are well documented. The Company’s QP considers the Historical MRE to be reliable. General statistics and geostatistics were evaluated for the deposit. Domains were created according to geology and structures to ensure mineralization was estimated according to each separate domain. High grade outliers were capped to avoid over estimation of mineral content. Variograms were evaluated to determine variance of mineralization. Mineralization was estimated using Ordinary Kriging estimation techniques. Resulting mineral resource estimates were validated by evaluating swath plots, local estimates of mineralization compared to drilling composites and visually. The Historical MRE was categorized according to the CIM Definition Standards for Mineral Resources and Mineral Reserves 2014. Mineralization for the Historical MRE has been categorized as measured, indicated and inferred mineral resources. No more recent estimates or data are available to Denarius Metals. In order to update the Historical MRE, the Company’s QP needs to independently validate the Historical MRE through a review of the geological models, drilling databases, assay reliability and reproducibility, geostatistical analyses and a re-estimation of mineral resources for the Aguablanca Project.
