Ero Copper Corp. (TSX: ERO, NYSE: ERO) ("Ero" or
the “Company”) is pleased to announce an update of its National
Instrument 43-101 (“NI 43-101”) compliant mineral reserves and
resources along with a life-of-mine ("LOM") production plan for its
Caraíba Operations, located in Bahia State, Brazil. The updated
mineral reserve and mineral resource estimates incorporate drilling
activities through June 30, 2022 while mining depletion has been
updated through the effective date of the estimate, September 30,
2022.
HIGHLIGHTS
- The addition of Project Honeypot contributes measured and
indicated mineral resources, inclusive of reserves, of 9.7 Mt
grading 1.87% copper containing 181.3 kt of copper;
- Increase of 31% in the Caraíba Operations proven and probable
mineral reserves as compared to the 2021 estimate, including a 43%
increase within the Pilar Mine, driven by the Project Honeypot
maiden mineral reserve of approximately 129.7 kt of contained
copper (8.1 Mt grading 1.59% copper);
- An additional 49.1 kt of contained copper (4.6 Mt grading 1.08%
copper) was added to proven and probable mineral reserves from
other areas within the upper levels of the Pilar Mine, resulting in
a net increase of 150.5 kt of contained copper after mine
depletion;
- The mineral reserve estimate for Project Honeypot currently
reflects more conservative assumptions for dilution and mine
recovery than what is being achieved in the Pilar Mine - see notes
on mineral resources and reserves for additional details;
- The inclusion of Project Honeypot into Caraíba's 2022 Strategic
LOM Plan provides operational flexibility and improvements over
prior production guidance and the LOM plan included in the 2020
Technical Report (as defined below):
- A 5% increase in projected mill head grades when compared to
same-year projections outlined in the Company's 5-Year Guidance
(please refer to press release dated January 11, 2022);
- Vermelhos District open pits re-sequenced from 2026 / 2027 to
beyond 2030, deferring capital related to pre-stripping and ore
sorting as well as simplifying the Company's development
initiatives over the medium-term; and,
- Steady growth in copper production from 45.3kt (2023) to 59.4
kt of copper by 2036 and current mine life of 20 years
"Caraíba's 2022 updated mineral reserves,
mineral resources and life-of-mine production plan reflect years of
planning and investment to significantly extend the scale and life
of our operations in the Curaçá Valley." stated David Strang, Chief
Executive Officer. "One of our core objectives for the Company this
year was to focus on the inclusion of Project Honeypot in the Pilar
Mine production plan - with nearly 10 million tonnes of higher
grade measured and indicated resources added to our mineral
inventory within the upper levels of the Pilar Mine, we have
achieved this objective.
"Time has shown that one of the many benefits of
Caraíba's hub-and-spoke operating model has and will continue to be
flexibility. The sheer number of operating levers and opportunities
available provides us with the capability to adjust our production
plans to market conditions while continuing to demonstrate
consistent year-on-year growth. The results of Project Honeypot,
which has now been incorporated into our strategic planning, has
afforded our team the ability to evaluate short-term and long-term
production plans with various grade, cost and capital profiles. We
believe these plans will support attractive and resilient operating
margins in the future and create shareholder value through a wide
variety of macroeconomic conditions."
Caraíba Operations Proven & Probable
Mineral Reserves in 2021 vs. 2022 (contained copper)
Note: Mineral reserve estimates were prepared in
accordance with the Canadian Institute of Mining, Metallurgy and
Petroleum (“CIM”) Definition Standards for Mineral Resources and
Mineral Reserves, adopted by the CIM Council on May 10, 2014 (the
“CIM Standards”), and the CIM Estimation of Mineral Resources and
Mineral Reserves Best Practice Guidelines, adopted by CIM Council
on November 29, 2019 (the “CIM Guidelines”), using geostatistical
and/or classical methods, plus economic and mining parameters
appropriate for the deposit. Please refer to the Company's press
release dated January 6, 2022 or the forthcoming 2022 Technical
Report, as applicable and as defined below, for a discussion on the
assumptions, parameters and methods used to estimate the mineral
reserves. 2022 mineral reserve estimate effective date of September
30, 2022. All figures have been rounded to the relative accuracy of
the estimates.
Ero Copper's Consolidated Copper
Production Profile (recovered copper in kt)
Note: Tucumã Production Plan sourced from the
2021 Tucumã Technical Report (as defined below). Please refer to
notes on mineral reserves and resources in this press release for
additional information on the 2022 Strategic LOM Plan. The
Company's 2022 Strategic LOM Plan is preliminary in nature and
includes inferred mineral resources which are considered too
speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves. As such, there is no certainty that the 2022 Strategic
LOM Plan will be realized.
The Company's 2022 LOM planning process
considers recently completed and ongoing investments in mining and
milling infrastructure under the Company's Pilar 3.0 initiative. As
a result of the integration of Project Honeypot and the nature of
the mineralization remaining in the upper levels of the Pilar Mine,
and more broadly within the Company's underground operations,
effective extraction of the mineral reserve necessitated the
consideration of inferred mineral resources in the Company's
long-term strategic planning efforts, particularly in the design of
stopes that include measured, indicated and some inferred mineral
resources - a process that has been utilized at the Pilar Mine
since underground operations commenced in 1986. Inferred mineral
resources are considered too speculative geologically to have the
economic considerations applied to them that would enable them to
be categorized as mineral reserves. Mineral resources which are not
mineral reserves do not have demonstrated economic viability.
Please refer to the notes on mineral reserves and resources in this
press release for additional detail on the 2022 Strategic LOM
Plan.
2022 Strategic LOM Plan, Milling
Operations
|
Unit |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
2029 |
2030 |
2031 |
2032 |
Milling
Operations (incl. stockpile + ore sorting
adjustments) |
Tonnes Processed |
kt |
3,467 |
3,900 |
4,197 |
4,080 |
4,200 |
4,213 |
4,200 |
4,200 |
4,200 |
4,200 |
Grade Processed |
% Cu |
1.43 |
1.29 |
1.24 |
1.28 |
1.25 |
1.29 |
1.34 |
1.31 |
1.36 |
1.33 |
Recovery |
% |
91.6 |
92.3 |
92.1 |
92.3 |
92.1 |
92.3 |
92.5 |
92.4 |
92.6 |
92.4 |
Copper in Concentrate |
kt |
45.3 |
46.3 |
47.8 |
48.3 |
48.5 |
50.3 |
52.0 |
50.9 |
53.1 |
51.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit |
2033 |
2034 |
2035 |
2036 |
2037 |
2038 |
2039 |
2040 |
2041 |
2042 |
Milling
Operations (incl. stockpile + ore sorting
adjustments) |
Tonnes Processed |
kt |
4,200 |
4,200 |
4,200 |
4,200 |
4,200 |
4,200 |
4,200 |
4,080 |
3,375 |
2,997 |
Grade Processed |
% Cu |
1.32 |
1.32 |
1.40 |
1.52 |
1.22 |
1.05 |
0.77 |
0.65 |
0.78 |
0.96 |
Recovery |
% |
92.4 |
92.4 |
92.7 |
93.1 |
92.0 |
91.2 |
89.7 |
88.7 |
89.7 |
90.8 |
Copper in Concentrate |
kt |
51.2 |
51.2 |
54.6 |
59.4 |
47.1 |
40.0 |
28.8 |
23.4 |
23.6 |
26.2 |
Note: The Company's 2022 Strategic LOM Plan is
preliminary in nature and includes inferred mineral resources which
are considered too speculative geologically to have the economic
considerations applied to them that would enable them to be
categorized as mineral reserves. As such, there is no certainty
that the 2022 Strategic LOM Plan will be realized. The Company has
an active drill program in place to continuously infill and upgrade
inferred mineral resources once underground drill stations have
been developed. However, until this work is completed and the
inferred resources have been upgraded to mineral reserves, there is
no certainty this material will be converted into mineral reserves.
Modified inferred mineral resources are not mineral reserves.
Mineral resources that are not mineral reserves do not have a
demonstrated economic viability.
2022 MINERAL RESERVE AND RESOURCE ESTIMATE
|
2022 Mineral Reserves &Resources |
2021 Mineral Reserves & Resources |
Change |
|
Tonnes(kt) |
Grade(Cu %) |
ContainedCu (kt) |
Tonnes(kt) |
Grade(Cu %) |
ContainedCu (kt) |
ContainedCu (kt) |
% |
Project Honeypot Areas, Pilar Mine |
|
Proven Reserves |
2,595 |
1.66 |
43.1 |
— |
— |
— |
43.1 |
NA |
Probable Reserves |
5,551 |
1.56 |
86.6 |
— |
— |
— |
86.6 |
NA |
Proven & Probable Reserves1 |
8,146 |
1.59 |
129.7 |
— |
— |
— |
129.7 |
NA |
|
|
|
|
|
|
|
|
|
Measured Resources |
3,229 |
1.86 |
60.0 |
— |
— |
— |
60.0 |
NA |
Indicated Resources |
6,459 |
1.88 |
121.3 |
— |
— |
— |
121.3 |
NA |
Measured & Indicated |
9,687 |
1.87 |
181.3 |
— |
— |
— |
181.3 |
NA |
|
|
|
|
|
|
|
|
|
Inferred Resources |
896 |
1.07 |
9.6 |
— |
— |
— |
9.6 |
NA |
Total Pilar Mine, including Project Honeypot
Areas |
Proven Reserves |
15,092 |
1.26 |
190.3 |
6,406 |
1.33 |
85.0 |
105.3 |
124 |
Probable Reserves |
19,870 |
1.56 |
309.4 |
18,110 |
1.46 |
264.2 |
45.2 |
17 |
Proven & Probable Reserves1 |
34,962 |
1.43 |
499.7 |
24,515 |
1.42 |
349.2 |
150.5 |
43 |
|
|
|
|
|
|
|
|
|
Measured Resources |
29,806 |
1.38 |
412.4 |
23,683 |
1.60 |
378.3 |
34.2 |
9 |
Indicated Resources |
23,947 |
1.73 |
413.3 |
23,656 |
1.56 |
368.0 |
45.4 |
12 |
Measured & Indicated Resources |
53,753 |
1.54 |
825.8 |
47,339 |
1.58 |
746.2 |
79.5 |
11 |
|
|
|
|
|
|
|
|
|
Inferred Resources |
16,993 |
1.42 |
241.3 |
15,567 |
1.46 |
227.6 |
13.7 |
6 |
Note: 2022 mineral reserve and resource estimates
are effective as at September 30, 2022. Presented mineral resources
inclusive of mineral reserves. All figures have been rounded to
reflect the relative accuracy of the estimates. Summed amounts may
not add due to rounding. Mineral resources that are not mineral
reserves do not have a demonstrated economic viability. See below
notes on mineral reserve and resource estimates for additional
technical and scientific information.
1. In the mine design of the Pilar
underground mine, certain stopes include measured and indicated as
well as inferred resource blocks. In these instances, inferred
resource blocks within the defined mining shape were assigned zero
grade. Development occurring within marginal ore, above the
operational cut-off grade, has also been included in the mineral
reserve estimate. Marginal grade material above the operational
cut-off grade, is used for mine planning purposes in dilution and
development envelopes and not for design of primary production
stopes. See below notes on mineral reserve and resource estimates
for additional technical and scientific information.
|
2022 Mineral Reserves & Resources |
2021 Mineral Reserves & Resources |
Change |
|
Tonnes (kt) |
Grade (Cu %) |
Contained Cu (kt) |
Tonnes (kt) |
Grade (Cu %) |
Contained Cu (kt) |
Contained Cu (kt) |
% |
Total Caraíba Operations |
|
|
|
|
|
|
|
|
Underground |
|
|
|
|
|
|
|
|
Proven Reserves |
17,336 |
1.30 |
225.6 |
9,177 |
1.49 |
136.8 |
88.8 |
|
65 |
|
Probable Reserves |
22,125 |
1.51 |
333.1 |
20,797 |
1.42 |
295.6 |
37.5 |
|
13 |
|
Proven & Probable Reserves1 |
39,461 |
1.42 |
558.7 |
29,974 |
1.44 |
432.4 |
126.3 |
|
29 |
|
|
|
|
|
|
|
|
|
|
Measured Resources |
34,224 |
1.44 |
493.2 |
30,355 |
1.63 |
493.7 |
(0.5 |
) |
— |
|
Indicated Resources |
35,389 |
1.48 |
524.8 |
39,005 |
1.33 |
519.9 |
4.9 |
|
1 |
|
Measured & Indicated Resources |
69,613 |
1.46 |
1,018.0 |
69,360 |
1.46 |
1,013.6 |
4.4 |
|
— |
|
|
|
|
|
|
|
|
|
|
Inferred Resources |
35,888 |
1.15 |
411.4 |
40,331 |
1.14 |
458.3 |
(46.9 |
) |
(10 |
) |
Open
Pit |
|
|
|
|
|
|
|
|
Proven Reserves |
19,148 |
0.55 |
105.5 |
15,680 |
0.59 |
92.0 |
13.5 |
|
15 |
|
Probable Reserves |
24,158 |
0.53 |
128.4 |
13,627 |
0.61 |
82.7 |
45.7 |
|
55 |
|
Proven & Probable Reserves |
43,306 |
0.54 |
233.9 |
29,306 |
0.60 |
174.7 |
59.2 |
|
34 |
|
|
|
|
|
|
|
|
|
|
Measured Resources |
20,803 |
0.62 |
128.7 |
16,777 |
0.61 |
103.0 |
25.7 |
|
25 |
|
Indicated Resources |
27,486 |
0.56 |
154.1 |
18,563 |
0.56 |
104.5 |
49.6 |
|
47 |
|
Measured & Indicated Resources |
48,289 |
0.59 |
282.8 |
35,340 |
0.59 |
207.5 |
75.3 |
|
36 |
|
|
|
|
|
|
|
|
|
|
Inferred Resources |
11,513 |
0.62 |
71.4 |
3,000 |
0.50 |
15.1 |
56.3 |
|
373 |
|
Total Underground and Open Pit |
|
|
|
|
|
|
|
|
Proven Reserves |
36,484 |
0.91 |
331.1 |
24,857 |
0.92 |
228.8 |
102.3 |
|
45 |
|
Probable Reserves |
46,283 |
1.00 |
461.5 |
34,423 |
1.10 |
378.3 |
83.2 |
|
22 |
|
Proven & Probable Reserves1 |
82,767 |
0.96 |
792.6 |
59,280 |
1.02 |
607.1 |
185.5 |
|
31 |
|
|
|
|
|
|
|
|
|
|
Measured Resources |
55,027 |
1.13 |
621.9 |
47,132 |
1.27 |
596.7 |
25.2 |
|
4 |
|
Indicated Resources |
62,875 |
1.08 |
678.9 |
57,568 |
1.08 |
624.4 |
54.5 |
|
9 |
|
Measured & Indicated Resources |
117,901 |
1.10 |
1,300.8 |
104,700 |
1.17 |
1,221.1 |
79.7 |
|
7 |
|
|
|
|
|
|
|
|
|
|
Inferred Resources |
47,400 |
1.02 |
482.8 |
43,331 |
1.09 |
473.4 |
9.4 |
|
2 |
|
Note: 2022 mineral reserve and resource estimates
are effective as at September 30, 2022. Presented mineral resources
inclusive of mineral reserves. All figures have been rounded to
reflect the relative accuracy of the estimates. Summed amounts may
not add due to rounding. Mineral resources that are not mineral
reserves do not have a demonstrated economic viability. See below
notes on mineral reserve and resource estimates for additional
technical and scientific information.
1. In the mine design of the Pilar, Vermelhos
and Surubim underground mines, certain stopes include measured and
indicated as well as inferred resource blocks. In these instances,
inferred resource blocks within the defined mining shape were
assigned zero grade. Development occurring within marginal ore,
above the operational cut-off grade, has also been included in the
mineral reserve estimate. Marginal grade material above the
operational cut-off grade, is used for mine planning purposes in
dilution and development envelopes and not for design of primary
production stopes. See below notes on mineral reserve and resource
estimates for additional technical and scientific information.
MINING OPERATIONS, LOM PRODUCTION
PLANS
The Company's 2022 updated LOM production plans
reflect recent and ongoing investments in mining and milling
infrastructure that continues to support significant operating
flexibility - further enhanced by the Company's Pilar 3.0
initiative. A key component of Pilar 3.0 is Project Honeypot, an
engineering initiative focused on recovering high-grade stopes, rib
and sill pillars in the upper levels of the Pilar Mine left behind
by previous operators during the late 1990s primarily due to the
under-capitalized nature of operations at the time.
Due to the nature of the mineralization
remaining in the upper levels of the Pilar Mine, and elsewhere
within the underground operations of the Company, effective
extraction of the mineral reserve necessitated the consideration of
inferred mineral resources in long-term strategic planning efforts
- a process that has been utilized at the Pilar Mine since
underground operations commenced in 1986. As a result, the Company
has defined two production plans:
- The 2022 Reserve LOM Plan, which is based only on the Caraíba
Operation's proven and probable mineral reserves as of September
30, 2022 with inferred mineral resources, where unavoidably mined,
assigned zero grade thus reducing stope sizing and production
volumes relative to the Company's strategic plan; and,
- The 2022 Strategic LOM Plan, which considers inferred mineral
resources for which modifying factors have been applied (see notes
on mineral reserves and resources of this press release).
The Company's 2022 Strategic LOM Plan is
preliminary in nature and includes inferred mineral resources from
the Company's mining operations that are considered too speculative
geologically to have economic considerations applied to them that
would enable them to be categorized as mineral reserves. As such,
there is no certainty that the 2022 Strategic LOM Plan will be
realized. The Company has an active drill program in place to
continuously infill and upgrade inferred mineral resources once
underground drill stations have been developed. However, until this
work is completed and the inferred resources have been upgraded to
mineral reserves, there is no certainty this material will be
converted into mineral reserves.
The 2022 Strategic LOM Plan applies the same
mining and recovery methods as the 2022 Reserve LOM Plan within
each mining area. Specifically, the same mining, recovery and
dilution modifying factors have been applied to inferred resources
included in the 2022 Strategic LOM Plan. More information on these
modifying factors will be included in the forthcoming 2022
Technical Report (as defined below). Modified inferred mineral
resources are not mineral reserves. Mineral resources that are not
mineral reserves do not have a demonstrated economic viability.
2022 Reserve LOM Plan, Mining Operations,
Mineral Reserves
|
Unit |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
2029 |
2030 |
2031 |
2032 |
Underground Operations |
|
|
|
|
|
|
|
|
|
|
|
Tonnes Mined |
kt |
2,445 |
2,774 |
2,941 |
3,249 |
3,422 |
3,304 |
2,996 |
2,458 |
2,131 |
2,010 |
Grade Mined |
% Cu |
1.54 |
1.30 |
1.36 |
1.34 |
1.27 |
1.38 |
1.46 |
1.41 |
1.40 |
1.43 |
Open Pit Operations |
|
|
|
|
|
|
|
|
|
|
|
Tonnes Mined |
kt |
541 |
488 |
514 |
558 |
1,024 |
— |
68 |
287 |
950 |
1,061 |
Grade Mined |
% Cu |
0.68 |
0.55 |
0.52 |
0.73 |
1.07 |
— |
0.80 |
0.74 |
0.57 |
0.68 |
Total Mining Operations |
|
|
|
|
|
|
|
|
|
|
|
Tonnes Mined |
kt |
2,986 |
3,262 |
3,455 |
3,807 |
4,446 |
3,304 |
3,065 |
2,745 |
3,082 |
3,072 |
Grade Mined |
% Cu |
1.39 |
1.19 |
1.24 |
1.25 |
1.23 |
1.38 |
1.44 |
1.34 |
1.14 |
1.17 |
Contained Copper |
kt |
41.5 |
38.9 |
42.7 |
47.5 |
54.5 |
45.7 |
44.3 |
36.9 |
35.2 |
35.9 |
|
Unit |
2033 |
2034 |
2035 |
2036 |
2037 |
2038 |
2039 |
2040 |
2041 |
2042 |
Underground Operations |
|
|
|
|
|
|
|
|
|
|
|
Tonnes Mined |
kt |
2,143 |
2,532 |
2,275 |
1,534 |
1,671 |
966 |
168 |
— |
— |
— |
Grade Mined |
% Cu |
1.24 |
1.26 |
1.35 |
1.56 |
1.70 |
1.83 |
2.97 |
— |
— |
— |
Open Pit Operations |
|
|
|
|
|
|
|
|
|
|
|
Tonnes Mined |
kt |
1,302 |
963 |
2,527 |
2,030 |
3,703 |
5,007 |
5,419 |
5,945 |
5,950 |
4,797 |
Grade Mined |
% Cu |
0.68 |
0.91 |
0.72 |
0.50 |
0.46 |
0.45 |
0.42 |
0.44 |
0.50 |
0.60 |
Total Mining Operations |
|
|
|
|
|
|
|
|
|
|
|
Tonnes Mined |
kt |
3,445 |
3,495 |
4,802 |
3,565 |
5,374 |
5,974 |
5,586 |
5,945 |
5,950 |
4,797 |
Grade Mined |
% Cu |
1.03 |
1.16 |
1.02 |
0.95 |
0.85 |
0.68 |
0.50 |
0.44 |
0.50 |
0.60 |
Contained Copper |
kt |
35.5 |
40.7 |
49.0 |
34.0 |
45.5 |
40.4 |
27.9 |
25.9 |
29.8 |
28.6 |
|
|
|
|
|
|
|
|
|
|
|
|
2022 Strategic LOM Plan, Mining
Operations, Inferred
|
Unit |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
2029 |
2030 |
2031 |
2032 |
Underground Operations |
|
|
|
|
|
|
|
|
|
|
|
Tonnes Mined |
kt |
507 |
560 |
634 |
516 |
523 |
665 |
877 |
1,430 |
1,518 |
1,347 |
Grade Mined |
% Cu |
1.70 |
1.79 |
1.34 |
1.39 |
1.46 |
1.03 |
1.15 |
1.16 |
1.44 |
1.32 |
Open Pit Operations |
|
|
|
|
|
|
|
|
|
|
|
Tonnes Mined |
kt |
68 |
135 |
20 |
41 |
12 |
— |
9 |
11 |
96 |
117 |
Grade Mined |
% Cu |
0.49 |
0.68 |
0.48 |
0.35 |
1.81 |
— |
0.61 |
0.55 |
0.61 |
0.63 |
Total Mining Operations |
|
|
|
|
|
|
|
|
|
|
|
Tonnes Mined |
kt |
575 |
696 |
653 |
557 |
536 |
665 |
886 |
1,441 |
1,614 |
1,465 |
Grade Mined |
% Cu |
1.55 |
1.57 |
1.32 |
1.31 |
1.47 |
1.03 |
1.14 |
1.15 |
1.39 |
1.26 |
Contained Copper |
kt |
8.9 |
11.0 |
8.6 |
7.3 |
7.9 |
6.8 |
10.1 |
16.6 |
22.4 |
18.5 |
|
Unit |
2033 |
2034 |
2035 |
2036 |
2037 |
2038 |
2039 |
2040 |
2041 |
2042 |
Underground Operations |
|
|
|
|
|
|
|
|
|
|
|
Tonnes Mined |
kt |
1,557 |
1,099 |
1,016 |
970 |
429 |
427 |
57 |
— |
— |
— |
Grade Mined |
% Cu |
1.50 |
1.42 |
1.53 |
2.10 |
2.13 |
2.23 |
0.50 |
— |
— |
— |
Open Pit Operations |
|
|
|
|
|
|
|
|
|
|
|
Tonnes Mined |
kt |
140 |
67 |
49 |
140 |
204 |
82 |
115 |
201 |
126 |
33 |
Grade Mined |
% Cu |
0.59 |
1.01 |
0.58 |
0.47 |
0.37 |
0.46 |
0.40 |
0.47 |
0.51 |
0.65 |
Total Mining Operations |
|
|
|
|
|
|
|
|
|
|
|
Tonnes Mined |
kt |
1,697 |
1,166 |
1,065 |
1,110 |
633 |
510 |
172 |
201 |
126 |
33 |
Grade Mined |
% Cu |
1.42 |
1.40 |
1.48 |
1.89 |
1.57 |
1.94 |
0.44 |
0.47 |
0.51 |
0.65 |
Contained Copper |
kt |
24.1 |
16.3 |
15.8 |
21.0 |
9.9 |
9.9 |
0.8 |
0.9 |
0.6 |
0.2 |
Note: The 2022 Strategic LOM Plan applies the
same mining and recovery methods as the 2022 Reserve LOM Plan.
Accordingly, the same mining, recovery and dilution modifying
factors have been applied to inferred resources included in the
2022 Strategic LOM Plan. More information on these modifying
factors will be included in the forthcoming 2022 Technical Report
(as defined below). Modified inferred mineral resources are not
mineral
NOTES ON MINERAL RESERVES AND
RESOURCES
Mineral reserve and mineral resource estimates
are effective as at September 30, 2022. Mineral resources are
presented inclusive of mineral reserves. All figures have been
rounded to the relative accuracy of the estimates. Summed amounts
may not add due to rounding. Mineral resources that are not mineral
reserves do not have a demonstrated economic viability.
Mineral reserve estimates are prepared by or
under the supervision of and verified by Dr. Beck (Alizeibek)
Nader, FAIG of BNA Mining Solutions and Mr. Alejandro Sepulveda,
Register Member (No. 0293) (Chilean Mining Commission) of NCL
Ingeniería y Construcción SpA, who are independent qualified
persons under NI 43-101.
Mineral resource estimates are prepared by or
under the supervision of and verified by Sr. Porfirio Cabaleiro
Rodriguez, FAIG, who is an independent qualified persons under NI
43-101.
Reference herein of $ or USD is to United States
dollars and BRL is to Brazilian reais. Mineral Reserves for the
Caraíba Operations have been estimated using a copper price of
$3.30/lb, and the exchange rate used for mineral reserve and
resource estimates was USD/BRL 5.29.
Underground mineral resource estimates have been
constrained within newly developed 3D lithology models applying a
0.45% and 0.20% copper grade envelope for high and marginal grade,
respectively. Within these envelopes, mineral resources for
underground deposits were constrained using varying stope
dimensions of up to 20m by 10m by 35m applying a 0.51% copper
cut-off grade, as well as a 0.34% copper marginal (or operational)
cut-off grade. Mineral resources have been estimated using ordinary
kriging inside 5m by 5m by 5m block sizes. The mineral resource
estimates were prepared in accordance with the CIM Standards, and
the CIM Guidelines, using geostatistical and/or classical methods,
plus economic and mining parameters appropriate to the deposit.
A low-grade envelope using a cut-off grade of
0.20% copper for underground deposits was used to develop a
dilution and development block model that was included to define
the grade of blocks within the dilution envelope in planning and
design of stopes within the mineral resource and mineral reserve
estimate.
Open pit mineral resource estimates have been
constrained within newly developed 3D lithology models using a
0.16% copper cut-off grade for open pit deposits. Mineral resources
have been estimated using ordinary kriging inside 5m by 5m by 5m
block sizes. The mineral resource estimates were prepared in
accordance with the CIM Standards, and the CIM Guidelines, using
geostatistical and/or classical methods, plus economic and mining
parameters appropriate to the deposit.
Mineral reserves are the economic portion of the
measured and indicated mineral resources. Mining dilution and
recovery factors vary for specific mineral reserve sources and are
influenced by factors such as deposit type, deposit shape, stope
orientation and selected mining method. In the mine design of the
Pilar and Vermelhos underground mines, certain stopes include
measured and indicated as well as inferred resource blocks. In
these instances, inferred resource blocks within the defined mining
shape were assigned zero grade. In 2022, inferred blocks assigned
zero grade totaled approximately 188,000 tonnes for the Deepening
Extension Zone, 234,000 tonnes for the Pilar Underground Mine and
approximately 27,000 tonnes for the Vermelhos Underground Mine.
Development occurring within marginal ore, above the operational
cut-off grade, has also been included in the mineral reserve
estimate. Dilution occurring from measured and indicated resource
blocks was assigned grade based upon the mineral resource grade of
the blocks included in the dilution envelope. Planned and
operational mining dilution and mine recovery for the Company's
underground operations vary by deposit:
- Within the upper levels of the Pilar Mine, including Project
Honeypot, dilution and mine recovery average 32% and 90%,
respectively;
- Elsewhere in the Pilar Mine, including the Deepening Extension,
dilution and mine recovery average 23% and 96%, respectively;
- Within the Vermelhos Mine and the Surubim Mine, dilution and
mine recovery average 10% and 95%, respectively.
QUALIFIED PERSONS AND THE NI 43-101
TECHNICAL REPORT
Sr. Porfirio Cabaleiro Rodriguez, FAIG, has
reviewed and approved the scientific and technical information
contained in this press release. Mr. Rodriguez is independent of
the Company and a qualified person as defined by NI 43-101.
The Company will file the associated NI 43-101
compliant report (the "2022 Technical Report") on SEDAR
(www.sedar.com) and EDGAR (www.sec.gov), and publish this report on
the Company’s website (www.erocopper.com), within 45 days of this
press release, which will serve as an update to the technical
report entitled “2020 Updated Mineral Resources and Mineral
Reserves Statements of Mineração Caraíba’s Vale do Curaçá Mineral
Assets, Curaçá Valley”, dated January 14, 2021 with an effective
date of October 1, 2020, prepared by Porfirio Cabaleiro Rodrigues,
FAIG, Bernardo Horta de Cerqueira Viana, MAIG, Paulo Roberto
Bergmann, FAusIMM, Fábio Valério Câmara Xavier, MAIG and Dr.
Augusto Ferreira Mendonça, RM SME all of GE21 Consultoria Mineral
Ltda. (“GE21”) and Dr. Beck (Alizeibek) Nader, FAIG of BNA Mining
Solutions (the “2020 Technical Report”).
Please refer to the NI 43-101 compliant
technical report entitled "Boa Esperança Project NI 43-101
Technical Report on Feasibility Study Update" dated November 12,
2021 with an effective date of August 31, 2021, prepared by Kevin
Murray, P. Eng., Erin L. Patterson, P. Eng., and Scott C. Elfen,
P.E., all of Ausenco Engineering Canada Inc., Carlos Guzmán,
FAusIMM RM CMC of NCL Ingeniería y Construcción SpA, who are
independent qualified persons under NI 43-101, and Emerson Ricardo
Re, MSc, MBA, MAusIMM (CP) (No. 305892), Registered Member (No.
0138) (Chilean Mining Commission) Resource Manager of the Company
on the date of the report (now of HCM Consultoria Geologica Eireli)
(the “2021 Tucumã Technical Report”) for technical information and
assumptions related to the Tucumã LOM production plan.
QUALITY ASSURANCE & QUALITY
CONTROL
Current QA/QC Program
At the Caraíba Operations, the Company is
currently drilling underground with core drill rigs using a
combination of owned and third-party contracted drill rigs. During
the period from September 2021 to June 2022, third party drill rigs
were operated by Major Drilling, DrillGeo Geologia e Sondagem
Ltda., and Layne Christensen Co., all of whom are independent of
the Company. Drill core is logged, photographed and split in half
using a diamond core saw at the Caraíba Operations’ secure core
logging and storage facilities. Half of the drill core is retained
on site and the other half-core is used for analysis, with samples
collected on one- meter sample intervals unless an interval crosses
a geological contact. Reverse circulation cuttings are split at the
drill rig using one-meter sample intervals. All sample preparation
is performed in the secure on-site laboratory of Mineraҫão Caraíba
S.A. (“MCSA”), the Company's subsidiary that holds a 100% interest
in the Caraíba Operations. Total copper is determined using a
nitric-hydrochloric acid digestion and Atomic Absorption
Spectrometry (“AAS”) and/or Titration. Oxide copper values are
determined using sulfuric acid digestion followed by AAS. All such
sample results used in the preparation of the 2022 updated mineral
resource and reserve estimate have been monitored through a quality
assurance and quality control (“QA/QC”) program that includes the
insertion of certified standards, blanks, and pulp and reject
duplicate samples. Regular check-assays are submitted to ALS Brasil
LTDA’s facility located in Vespasiano, Minas Gerais, Brazil, at a
rate of approximately 5%. ALS Brasil LTDA is independent of the
Company.
QA/QC Validation
The QA/QC validation process undertaken for the
2022 updated mineral resource and reserve estimates for the Caraíba
Operations is consistent with the process set out in the 2020
Technical Report.
ABOUT ERO COPPER CORP
Ero Copper Corp is a high-margin, high-growth,
clean copper producer with operations in Brazil and corporate
headquarters in Vancouver, B.C. The Company's primary asset is a
99.6% interest in the Brazilian copper mining company, MCSA, 100%
owner of the Company's Caraíba Operations (formerly known as the
MCSA Mining Complex), which are located in the Curaçá Valley, Bahia
State, Brazil and include the Pilar and Vermelhos underground mines
and the Surubim open pit mine, and the Tucumã Project (formerly
known as Boa Esperança), an IOCG-type copper project located in
Pará, Brazil. The Company also owns 97.6% of NX Gold S.A. which
owns the Xavantina Operations (formerly known as the NX Gold Mine),
namely comprised of an operating gold and silver mine located in
Mato Grosso, Brazil. Additional information on the Company and its
operations, including technical reports on the Caraíba Operations,
Xavantina Operations and Tucumã Project, can be found on the
Company's website (www.erocopper.com), on SEDAR (www.sedar.com),
and on EDGAR (www.sec.gov). The Company’s shares are publicly
traded on the Toronto Stock Exchange and the New York Stock
Exchange under the symbol “ERO”.
ERO COPPER CORP.
/s/ David Strang
David Strang, CEO
For further information contact:Courtney Lynn, VP, Corporate
Development & Investor Relations(604)
335-7504info@erocopper.com
CAUTION REGARDING FORWARD LOOKING INFORMATION
AND STATEMENTS
This press release contains “forward-looking
statements” within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and “forward-looking
information” within the meaning of applicable Canadian securities
legislation (collectively, “forward-looking statements”).
Forward-looking statements include statements that use
forward-looking terminology such as “may”, “could”, “would”,
“will”, “should”, “intend”, “target”, “plan”, “expect”, “budget”,
“estimate”, “forecast”, “schedule”, “anticipate”, “believe”,
“continue”, “potential”, “view” or the negative or grammatical
variation thereof or other variations thereof or comparable
terminology. Forward-looking statements may include, but are not
limited to, statements with respect to the Company's expected
production at the Caraíba Operations; the realization of the 2022
Reserve LOM Plan or the 2022 Strategic LOM Plan; the estimation of
mine life, mineral reserves and mineral resources; the significance
of any particular exploration program or result and the Company’s
expectations for current and future exploration plans including,
but not limited to, planned areas of additional exploration and the
potential to convert any portion of the inferred mineral resource
base to economically viable mineral reserves; estimated completion
dates for certain milestones; estimated commencement date for
mining of certain mineralized zones; and any other statement that
may predict, forecast, indicate or imply future plans, intentions,
levels of activity, results, performance or achievements.
Forward-looking statements are subject to a
variety of known and unknown risks, uncertainties and other factors
that could cause actual results, actions, events, conditions,
performance or achievements to materially differ from those
expressed or implied by the forward-looking statements, including,
without limitation, risks discussed in this press release and in
the Company's Annual Information Form for the year ended December
31, 2021 and dated March 11, 2022 (the "AIF") under the heading
“Risk Factors”. The risks discussed in this press release and in
the AIF are not exhaustive of the factors that may affect any of
the Company’s forward-looking statements. Although the Company has
attempted to identify important factors that could cause actual
results, actions, events, conditions, performance or achievements
to differ materially from those contained in forward-looking
statements, there may be other factors that cause results, actions,
events, conditions, performance or achievements to differ from
those anticipated, estimated or intended.
Forward-looking statements are not a guarantee
of future performance. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Forward-looking statements involves
statements about the future and are inherently uncertain, and the
Company’s actual results, achievements or other future events or
conditions may differ materially from those reflected in the
forward-looking statements due to a variety of risks, uncertainties
and other factors, including, without limitation, those referred to
herein and in the AIF under the heading “Risk Factors”.
The Company’s forward-looking statements are
based on the assumptions, beliefs, expectations and opinions of
management on the date the statements are made, many of which may
be difficult to predict and beyond the Company’s control. In
connection with the forward-looking statements contained in this
press release and in the AIF, the Company has made certain
assumptions about, among other things: continued effectiveness of
the measures taken by the Company to mitigate the possible impact
of COVID-19 on its workforce and operations; favourable equity and
debt capital markets; the ability to raise any necessary additional
capital on reasonable terms to advance the production, development
and exploration of the Company’s properties and assets; future
prices of copper, gold and other metal prices; the timing and
results of exploration and drilling programs; the accuracy of any
mineral reserve and mineral resource estimates; the geology of the
Caraíba Operations, the Xavantina Operations and the Tucumã Project
being as described in the respective technical report for each
property; production costs; the accuracy of budgeted exploration,
development and construction costs and expenditures; the price of
other commodities such as fuel; future currency exchange rates and
interest rates; operating conditions being favourable such that the
Company is able to operate in a safe, efficient and effective
manner; work force continuing to remain healthy in the face of
prevailing epidemics, pandemics or other health risks (including
COVID-19), political and regulatory stability; the receipt of
governmental, regulatory and third party approvals, licenses and
permits on favourable terms; obtaining required renewals for
existing approvals, licenses and permits on favourable terms;
requirements under applicable laws; sustained labour stability;
stability in financial and capital goods markets; availability of
equipment; positive relations with local groups and the Company’s
ability to meet its obligations under its agreements with such
groups; and satisfying the terms and conditions of the Company’s
current loan arrangements. Although the Company believes that the
assumptions inherent in forward-looking statements are reasonable
as of the date of this press release, these assumptions are subject
to significant business, social, economic, political, regulatory,
competitive and other risks and uncertainties, contingencies and
other factors that could cause actual actions, events, conditions,
results, performance or achievements to be materially different
from those projected in the forward-looking statements. The Company
cautions that the foregoing list of assumptions is not exhaustive.
Other events or circumstances could cause actual results to differ
materially from those estimated or projected and expressed in, or
implied by, the forward-looking statements contained in this press
release.
Forward-looking statements contained herein are
made as of the date of this press release and the Company disclaims
any obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or results or
otherwise, except as and to the extent required by applicable
securities laws.
CAUTIONARY NOTES REGARDING MINERAL RESOURCE AND
MINERAL RESERVE ESTIMATES
In accordance with applicable Canadian
securities regulatory requirements, all mineral reserve and mineral
resource estimates of the Company disclosed or incorporated by
reference in this press release have been prepared in accordance
with NI 43-101 and are classified in accordance with CIM Standards.
NI 43-101 is a rule developed by the Canadian Securities
Administrators that establishes standards for all public disclosure
an issuer makes of scientific and technical information concerning
mineral projects. NI 43-101 differs significantly from the
disclosure requirements of the Securities and Exchange Commission
(the “SEC”) generally applicable to U.S. companies. For example,
the terms “mineral reserve”, “proven mineral reserve”, “probable
mineral reserve”, “mineral resource”, “measured mineral resource”,
“indicated mineral resource” and “inferred mineral resource” are
defined in NI 43-101. These definitions differ from the definitions
in the disclosure requirements promulgated by the SEC. Accordingly,
information contained in this press release may not be comparable
to similar information made public by U.S. companies reporting
pursuant to SEC disclosure requirements.
Mineral resources which are not mineral reserves
do not have demonstrated economic viability. Pursuant to the CIM
Standards, mineral resources have a higher degree of uncertainty
than mineral reserves as to their existence as well as their
economic and legal feasibility. Inferred mineral resources, when
compared with measured or indicated mineral resources, have the
least certainty as to their existence, and it cannot be assumed
that all or any part of an inferred mineral resource will be
upgraded to an indicated or measured mineral resource as a result
of continued exploration. Pursuant to NI 43-101, inferred mineral
resources may not form the basis of any economic analysis.
Accordingly, readers are cautioned not to assume that all or any
part of a mineral resource exists, will ever be converted into a
mineral reserve, or is or will ever be economically or legally
mineable or recovered.
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