Dear MINXers,

Since we all have interests in this project related to gold mining, we think it is important that everyone can understand basic concepts that will tell us about the viability of a mining project and the potential for wealth it contains.

When making an estimate of resources to establish the economic viability of a mining deposit, the greater the number of samples obtained within the deposit, the greater the reliability of the estimated resource.

According to the degree of reliability, the resources are classified as follows:

Measured resources: they are the most reliable. They are defined by taking very close samples between them, which allows us to confirm with certainty that the intermediate resources between the samples really exist.

they are the most reliable. They are defined by taking very close samples between them, which allows us to confirm with certainty that the intermediate resources between the samples really exist. Indicated resources: they are the resources calculated when the samples are taken more separated from each other. The level of confidence in the presence of ore between the samples is reduced, although it can still be estimated with certainty.

they are the resources calculated when the samples are taken more separated from each other. The level of confidence in the presence of ore between the samples is reduced, although it can still be estimated with certainty. Inferred resources: they refer to those resources for which there are quantitative estimates based on the geological knowledge of the deposit, but for which there are still no measurements or samples, or these are scarce and have been taken very far from each other, so that the continuity of the deposit between these samples can not be assured (there may be discontinuities, reductions or increases in the thickness of the vein, variation of densities, fluctuation of the number of grams per ton of material). These resources can be used to conduct a preliminary economic study.

On the other hand, we talk about the mining reserves referring to that part of the mineral resources that, through the feasibility study of a mining project, it is shown that they are really exploitable (it may happen that a deposit has a certain amount of mining resources but, due to the cost of extraction, its exploitation is not profitable, here we could not talk about reserves). If it is underground mining, under this name should be included only those mineral resources within the category in which they have been measured and indicated, and that can be exploited through a specific mining method.

The probable reserves are those resources, within the indicated category, that have been shown to be extracted with a determined mining plan.

In the case of our Vereda Guayaquil deposit, in the last year the amount of reserves and resources have increased, reaching the following figures: