 If possible, establish Exploration  Discussion of basis for using, or not Target ranges for grades and using, grade cutting or capping, or tonnages. restriction of the volume of influence. Compositing or data aggregation  methods used should be described. If a computer method was chosen,  description of programs and parameters used.  Geostatistical methods are extremely varied and should be described in detail. The method chosen should be  supported. The geostatistical parameters,  including the variogram, and their compatibility with the geological interpretation should be discussed. Experience gained in applying  geostatistics to similar deposits should be into account. Description of methods used to verify  and validate models. Assumptions used for any reporting of  net smelter returns or metal equivalent values. D. Resource and Reserve Classification Description and justification of criteria Description and justification of criteria 1. Criteria   Not applicable.  used to classify the resource, including used to classify the reserves, and relationship to cut-off grade confirmation of resource classification assumptions. assumptions with respect to cut-off grades used in the production  To classify a resource as Measured or schedule. Indicated, there must be a reasonably high level of confidence with respect Description of all Modifying Factors  to the quality of the information used used to demonstrate economic viability of Measured and Indicated
 If possible, establish Exploration Target ranges for grades and tonnages.  Discussion of basis for using, or not using, grade cutting or capping, or restriction of the volume of influence.  Compositing or data aggregation methods used should be described.  If a computer method was chosen, description of programs and parameters used.  Geostatistical methods are extremely varied and should be described in detail.  The method chosen should be supported.  The geostatistical parameters, including the variogram, and their compatibility with the geological interpretation should be discussed.  Experience gained in applying geostatistics to similar deposits should be into account.  Description of methods used to verify and validate models.  Assumptions used for any reporting of net smelter returns or metal equivalent values. D. Resource and Reserve Classification 1. Criteria  Not applicable.  Description and justification of criteria used to classify the resource, including relationship to cut-off grade assumptions.  To classify a resource as Measured or Indicated, there must be a reasonably high level of confidence with respect to the quality of the information used  Description and justification of criteria used to classify the reserves, and confirmation of resource classification assumptions with respect to cut-off grades used in the production schedule.  Description of all Modifying Factors used to demonstrate economic viability of Measured and Indicated
SME_Guide_20Aug2017.docx