The mineral resource statement was prepared by G. David Keller, P.Geo. (APGO#1235), of AMC Consultants (UK) Limited (“AMC”), an “independent Qualified Person” as this term is defined in National Instrument 43-101 – Standards for Disclosure for Mineral Projects (“NI 43-101”). Mineral resources were estimated in conformity with generally accepted CIM "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines and are classified according to the "CIM Standards on Mineral Resources and Reserves: Definition and Guidelines" (November 2010).

This update incorporates the results of the Company’s 2016 drill program. The program covered the Tigranes-Arshak-Artavasdes (TAA) area and included 95 reverse circulation and diamond drill holes for a total of 9,058 drilled metres. This included a tight spaced drilling program on an approximate line spacing of 20 metres with 20 metre spacing of drill holes along each line. In addition, AMC incorporated updated topographic data for the entire project.

The program was successful in converting targeted inferred mineral resources to measured and indicated mineral resources. Measured and indicated resources now total 3.5 million contained gold ounces (142.2 million tonnes grading 0.76 grams per tonne (“g/t”) gold at a cut-off grade of 0.24 g/t gold), an increase of 15% compared to AMC’s August 29, 2014 Amulsar estimate of measured and indicated resources of 3.0 million contained gold ounces (122.4 million tonnes grading 0.77 g/t gold at a cut-off grade of 0.20 g/t gold).

Modeling of the tightly spaced drilling area indicated that the resource model contained the same tonnage and grade of material estimated previously at a larger drill hole spacing within the limits of a change in mining selectivity and modeling accuracy for a precious metal deposit of the style seen at Amulsar. Based on these results AMC considers that tightly spaced drilling will increase the confidence level of measured and indicated resources.


Mineral Resource Statement

AMC Consultants (UK) Limited, February 27, 2017


Classification Quantity Tonnes (000s)

Gold Grade (g/t)

Silver Grade (g/t)

Contained Gold (Koz)

Contained Silver (Koz)

Measured 51,500 0.83 4.7 1,370 7,700 
Indicated 90,700 0.73 3.4 2,130 9,800
Total Measured and Indicated 142,200 0.76 3.8 3,470 17,500
Total Inferred 72,200 0.55 3.3 1,280 7,600
  1. The effective date of the mineral resource statement is February 27, 2017.
  2. A cut-off grade of 0.24 g/t gold, based on a conceptual optimized open-pit shell, using a gold price of US$1,500/oz and assuming an open-pit mining scenario.
  3. Figures have been rounded to the appropriate level of precision for the reporting of measured, indicated, and inferred resources.
  4. Due to rounding, some columns or rows may not compute exactly as shown.
  5. Mineral resources are reported inclusive of mineral reserves.
  6. Mineral resources in this statement are not mineral reserves and have not demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. Mineral reserves have been previously reported for this project using a prior mineral resource statement.
  7. The resource model block size was increased from the previous 10 m × 10 m × 5 m blocks to 10 m × 10 m × 10 m blocks to reflect physical and economic mining parameters. To accommodate this change, the estimation strategy for gold and silver is based on ordinary kriging (“OK”) by estimating directly into 10 m × 10 m × 10 m blocks. This procedure is based on making successive OK estimates and changing estimation parameters so that the OK estimate approaches the global change of support tonnage and grade plot for gold and silver.
  8. The resource estimate is appropriate for a mining selectivity of 10 m x 10 m x 10 m blocks only.
  9. The August 29, 2014 mineral resource model was estimated using Localized Multiple Indicator Kriging.