PMRC

Philippine Mineral Reporting Code

Accredited Competent Person (ACP)

a minerals industry professional who is a Member or Fellow of PSEM, GSP and/or
SMEP, duly accredited as an ACP by the professional organization in which he/she
belongs, or of a ‘Recognized Professional Organization’ (RPO)

Bre-X Scammer

Michael De Guzman

Company of Fraud

Bre-X

Mineral

any substance, extracted for value, occurring naturally in or on the Earth,
in or under water or in tailings, residues or stockpiles, having been formed
by or subjected to a geological process but excludes water, oil and gas.

Grade (a.k.a. quality)

Any physical or chemical measurement of the characteristics of the
material of interest in samples or product. The units of measurement
should be stated when figures are reported.

Cut-off Grade

- The lowest grade, or quality, of mineralized material that qualifies as
economically mineable and available in a given mineral deposit. May be
defined on the basis of economic evaluation, or on physical or chemical
attributes that define an acceptable product.

Tonnage (a.k.a. quantity or in volume)

An expression of the amount of material of interest irrespective of the
units of measurement (which should be stated when figures are reported).

Recovery (%)

The percentage of material of initial interest that is extracted during
mining and/or processing. A measure of mining or processing efficiency

Mineral Resource

a concentration or occurrence of solid
material of intrinsic economic interest in
or on the Earth’s crust in such form,
grade (or quality) and quantity that
there are reasonable prospects for
eventual economic extraction.

Mineral* Reserve

economically mineable part of a
Measured and/or Indicated Mineral
Resource; includes diluting materials
and allowances for losses, which may
occur when the material is mined or
extracted and is defined by Prefeasibility or Feasibility studies.

Exploration Target

a statement or estimate of the exploration potential of a mineral deposit in a
defined geological setting where the statement or estimate, quoted as a range
of tonnage and a range of grade (or quality),relates to mineralization for which
there has been insufficient exploration to estimate a Mineral Resource

SCOPING STUDY

a.k.a. Conceptual Study

an initial appraisal carried out early in the life of a resource project based on
initial drilling and informed assumptions, and commonly include an elementary
mine plan.

PRE-FEASIBILITY STUDY

a.k.a. Preliminary Feasibility Study

◉ assessment of the Indicated and/or Measured Mineral Resources to determine if
it can be considered as an Ore Reserve that can be mined at a profit taking into
consideration relevant parameters such as:

ENGINEERING EVALUATIONS

is based
on the likely conversion of the mineral resources delineated into possible ore
reserves

Conceptual Study

assessment of physical characteristics and
production potentials of a number of mining methods, layouts and systems

Engineering Study

- methods, layouts, systems are quantified and compared; resulting in firm designs and costs

Detailed Design Study

drawings, specifications of preferred methods, layouts and systems5

FINAL FEASIBILITY STUDY

a.k.a. Comprehensive/Definitive/Bankable Feasibility Study

◉ detailed assessment to ascertain the technical reliability and economic viability
of a mining project covering the Ore Reserve verified by the Preliminary
Feasibility Study to come up with a sound investment decision and realistic
financing plan

Gross Value

Grade x Recovery x Price

Profit

Gross Value – Cost

Metric Ton (M.T.) = Tonne

2204.623 lbs = 1000 kg

Long Ton = British/UK/Imperial Ton

2240 lbs = 1016.047 kg

Short Ton = Ton

2000 lbs

Specific Gravity

cubic meters x S.G. = tonnage (metric tons)

Tonnage Factor

cubic ft x 1/T.F. = tonnage (short tons)

Tonnage Factor