Rockcliff Files Updated Talbot Deposit Mineral Resource Estimate - Seite 2

2) Mineral Resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
(3) The Inferred Mineral Resource in this estimate has a lower level of confidence that that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
(4) Approximate Jan 31/20 two year trailing average US$ metal prices used were $3/lb Cu, $1.10/lb Zn, $1,350/oz Au and $16.50/oz Ag. The US$: CDN$ exchange rate used was 0.77.
(5) Respective process recoveries for Cu, Zn, Au, Ag were 95%, 80%, 80%, 80%
(6) Respective smelter payables for Cu, Zn, Au, Ag were 96.5%, 85%, 90%, 90%.
(7)Respective USD Cu and Zn smelter treatment charges used were $80 and $250/tonne with concentrate freight of CDN$65/tonne.
(8) CuEq% was calculated as follows: Cu% + (Zn % x 0.220) + (Au g/t x 0.673) + (Ag g/t x 0.008).
(9) The 1.5% CuEq cut-off is approximately equivalent to a C$100/tonne project operating cost.
(10) Contained metal totals may differ due to rounding.

Figure 1: Talbot Deposit Longitudinal Projection Highlighting Indicated and Inferred Mineral Resources

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Resource Estimate Methodology
The Mineral Resource Estimate reported herein, considered drilling information available up to December 21, 2019 and was evaluated using a geostatistical block modeling approach constrained by polymetallic mineralization wireframes utilizing Geovia GEMS modeling software. The evaluation of the Mineral Resource Estimate involved CuEq cut-off value determination, cross-sectional polyline interpretation constraining wireframe creation, compositing, grade capping, variography, grade Interpolation and Mineral Resource Estimate quantification.

A total of 107 drill holes (totalling 57,303 metres) from the entire database were reviewed and 51 of those drill holes (totalling 35,027 metres) were utilized to create the constraining wireframes which have an overall (Talbot Deposit Main Lens and Talbot Deposit North Lens) strike length of 680 metres, down dip projection of 740 metres and average true width of 5.1 metres. There were 619 assays captured by the constraining wireframes that were combined into 376 composites with an average length of 1.0 metres. A grade capping evaluation was performed on the composites and resulted in the following upper limits: Cu 13%, Zn not capped Au 17g/t, Ag 230g/t. The capped composites were evaluated with variography to determine the grade interpolation search ellipsoid ranges for grade interpolation and classification. The Indicated Mineral Resource classification search ranges were 60 metres along strike, 65 metres down dip and 10 metres across dip. For a model block to be coded with an Indicated classification, its centroid must be able to see a minimum of 6 composites from at least 2 drill holes. Grade interpolation was undertaken with the ID2 method for Cu and Zn and ID3 for Au and Ag.  The bulk density model of Main Zone was interpreted from 138 bulk density samples with a simple search ellipse. The resulting block model utilized blocks that were 2.5 m in the X direction, 5 m in the Y direction and 5 m in the Z direction. The subsequent block model grades and tonnages were quantified within 1.5% CuEq constraining wireframe domains at a 1.5% CuEq cut-off value in order to report the Mineral Resource Estimate.