Mr. Randy Smallwood reports
SILVER WHEATON REPORTS OVER 1 BILLION OUNCES OF ATTRIBUTABLE SILVER EQUIVALENT RESERVES
Silver Wheaton Corp. has increased its attributable proven and probable reserves by over 38 per cent in
2012 to a record total of 1,116.1 million silver equivalent ounces, consisting of 851.4 million ounces of silver and 4.96 million ounces
of gold. Over the same period, attributable measured and indicated
resources increased 28 per cent to a record total of 603.2 million silver
equivalent ounces, consisting of 529.1 million ounces of silver and
1.39 million ounces of gold. Attributable inferred resources totalled
341.4 million silver equivalent ounces, consisting of 294.7 million
ounces of silver and 880,000 ounces of gold.
Silver Wheaton's increase in attributable reserves was a result of both
acquisition and organic growth, which, when combined, more than offset
depletion resulting from strong production over the year. In 2012, the
company acquired from Hudbay Minerals Inc. a precious metals
stream from its 777 mine and a silver stream from its Constancia
project. Subsequent to year-end 2012, Silver Wheaton also acquired 25 per cent
of the gold from Vale S.A.'s Salobo mine for the life of mine
and 70 per cent of the gold from certain of its Sudbury operations for a
20-year period, with both these agreements effective as of Jan. 1,
2013. In addition to these acquisitions, there was a substantial
increase in reserves and resources at Augusta Resource Corp.'s
Rosemont mine based on an updated feasibility study
released on July 24, 2012.
"Silver Wheaton has now reached yet another milestone with silver
equivalent reserves exceeding well over one billion ounces," said Randy
Smallwood, Silver Wheaton's president and chief executive officer.
"Silver equivalent reserves have grown by over 38 per cent since the end of
2011 through both acquisition and organic growth, even after another
year of strong production. On the acquisition front, we were able to
add two new partners over the past year, which resulted in a
significant increase to our gold reserves and resources. We now have
almost five million ounces of gold reserves, over 20 times more
than we had at the end of 2011. On the organic front, we saw
substantial replacement of mined reserves in 2012 through our partners'
exploration success. This once again highlights the strength of our
partners and the high-quality, long-term nature of the mines underlying
our streams.
"We are extremely pleased with the reserve and resource growth we have
seen over the past year, and we continue to be excited about the
prospect of adding additional high-quality ounces to our portfolio in
2013, given the strength and depth of the current opportunity pipeline.
The foundation of any strong mining company is the quality of its
mineral reserves and resources, and Silver Wheaton has one of the
strongest and most active portfolios in the entire precious metals
sphere."
Salobo 43-101 technical report filed
Silver Wheaton has filed a National Instrument 43-101-compliant technical report in support of the company's Feb. 5,
2013, news release, which included a reserve and resource estimate at
Vale's Salobo mine located in Brazil. The independent technical report,
entitled, "Silver Wheaton Corp. technical report on the mineral reserves
and mineral resources of the Salobo copper-gold mine, Carajas, Para state, Brazil," and dated March 19, 2013, was
prepared by Micon International Ltd. and authored by Jason Che Osmond,
CGeol, FGS, EurGeol, Barnard Foo, PEng, James Turner, CEng, MIMMM,
and Christopher Jacobs, CEng, MIMMM, all qualified persons as defined by
NI 43-101 and independent of Silver Wheaton for the purposes of NI
43-101 requirements. The technical report is available on SEDAR and on the company's website.
The technical report details the Dec. 31, 2012, resources and
reserves for Salobo, whereas the company's Feb. 5, 2013, press
release detailed the Dec. 31, 2011, resources and reserves. The 2011
Salobo resources and reserves were entirely contained within a reserve
pit and did not include measured and indicated resources. Attributable
proven and probable reserves are now estimated at 3.40 million ounces
of gold versus 3.80 million ounces of gold as reported at year-end 2011
(Feb. 5, 2013, press release), due to changed estimation limits in the block model and material mined during 2012. Attributable
measured and indicated resources exclusive of reserves are now 770,000 ounces of gold. Attributable inferred resources are now 370,000 ounces of gold versus 130,000 ounces of gold as originally
reported.
The attached tables set forth the estimated mineral reserves and mineral
resources for the mines relating to which the company has purchased
agreements, adjusted where applicable to reflect the company's
percentage entitlement to silver and/or gold produced from such mines,
as of Dec. 31, 2012, unless otherwise noted. The attached tables are based
on information available to the company as of the date of this press
release. The most current mineral reserves and mineral resources will
be available on the company's website.
ATTRIBUTABLE PROVEN AND PROBABLE RESERVES
AS OF DEC. 31, 2012, UNLESS OTHERWISE NOTED
Proven Probable Proven & Probable
Tonnage Grade Contained Tonnage Grade Contained Tonnage Grade Contained Process
recovery
Mt g/t Moz Mt g/t Moz Mt g/t Moz %
Silver
Penasquito
(25%)
Mill 144.5 29.4 136.4 121.2 20.8 80.9 265.7 25.5 217.4 53-65%
Heap leach 8.1 14.6 3.8 21.9 9.7 6.8 29.9 11.0 10.6 24%
San Dimas -- -- -- 3.8 289.5 35.2 3.8 289.5 35.2 94%
Pascua-Lama
(25%) 9.9 59.5 18.9 86.3 54.1 150.2 96.2 54.7 169.1 82%
Lagunas Norte 3.4 3.2 0.4 38.6 3.2 4.0 42.1 3.2 4.3 22%
Pierina 2.8 9.0 0.8 20.6 9.0 6.0 23.3 9.0 6.8 37%
Veladero 4.7 10.6 1.6 62.4 10.6 21.2 67.1 10.6 22.8 6%
Yauliyacu 1.1 96.0 3.3 2.9 100.0 9.4 4.0 98.9 12.7 85%
777 4.9 26.8 4.2 7.5 27.9 6.7 12.4 27.4 10.9 64%
Neves-Corvo
Copper 6.1 40.0 7.8 18.0 40.0 23.2 24.1 40.0 31.0 35%
Zinc 11.5 72.0 26.7 11.2 67.0 24.0 22.7 69.5 50.7 20%
Rosemont 279.5 4.1 37.0 325.8 4.1 43.1 605.3 4.1 80.1 80%
Constancia 359.0 3.3 38.3 91.0 3.6 10.6 450.0 3.4 48.8 72%
Mineral Park 293.9 2.7 25.7 74.5 2.9 7.0 368.4 2.8 32.6 49%
Zinkgruvan
Zinc 8.4 95.0 25.8 2.4 54.0 4.2 10.9 85.9 30.0 70%
Copper 3.9 32.0 4.0 0.1 34.0 0.1 4.0 32.0 4.1 78%
Aljustrel
Copper 2.2 19.2 1.3 8.4 15.3 4.1 10.6 16.1 5.5 30%
Campo Moradoz
(75%) 0.8 158.2 4.0 0.2 133.3 0.6 0.9 154.3 4.7 55%
Stratoni 1.7 174.0 9.3 0.1 225.0 0.7 1.8 177.0 10.0 84%
Minto 5.5 5.4 1.0 5.9 4.6 0.9 11.4 5.0 1.8 78%
Cozamin
Copper 0.9 63.0 1.7 4.9 50.7 8.0 5.8 52.5 9.8 74%
Los Filos 72.6 5.3 12.3 224.1 5.6 40.2 296.7 5.5 52.5 5%
Total silver 364.2 487.1 851.4
Gold
Salobo (25%) 159.2 0.42 2.15 121.5 0.32 1.25 280.6 0.38 3.40 66%
Sudbury (70%) 34.8 0.29 0.33 26.5 0.49 0.42 61.3 0.38 0.75 81%
777 3.9 1.90 0.24 5.9 1.90 0.36 9.8 1.90 0.60 73%
Minto 5.5 0.69 0.12 5.9 0.51 0.10 11.4 0.60 0.22 74%
Total gold 2.91 2.20 4.96
ATTRIBUTABLE MEASURED AND INDICATED RESOURCES
AS OF DEC. 31, 2012, UNLESS OTHERWISE NOTED
Measured Indicated Measured and indicated
Tonnage Grade Contained Tonnage Grade Contained Tonnage Grade Contained
Mt g/t Moz Mt g/t Moz Mt g/t Moz
Silver
Penasquito (25%)
Mill 31.4 14.4 14.6 112.9 13.1 47.6 144.2 13.4 62.2
Heap leach 0.9 5 0.1 5.4 4.2 0.7 6.4 4.3 0.9
Pascua-Lama 5.3 24.5 4.2 55.9 23.4 42.1 61.2 23.5 46.3
(25%)
Yauliyacu 0.7 115.6 2.5 5.1 227.1 37.2 5.8 214.2 39.7
Neves-Corvo
Copper 4.1 49.3 6.4 23.1 50.7 37.6 27.1 50.5 44.1
Zinc 13 59.7 25 51.6 55.4 92 64.6 56.3 117
Rosemont 38.5 3 3.7 197.7 2.7 17.1 236.2 2.7 20.8
Constancia 119 2.3 8.6 344 2 21.9 463 2.1 30.5
Mineral Park 101 2.6 8.4 175.6 2.7 15.2 276.6 2.7 23.6
Zinkgruvan
Zinc 1 88.8 2.7 3.7 124.6 14.7 4.6 117.2 17.4
Copper 1.5 21.2 1 0.5 33.8 0.6 2 24.3 1.6
Aljustrel
Zinc 1.3 65.6 2.7 20.5 60.3 39.7 21.8 60.7 42.4
Copper -- -- -- 0.1 11.7 0.04 0.1 11.7 0.04
Campo Morado
(75%) 5 128.9 20.6 2.4 123.5 9.7 7.4 127.1 30.2
Loma de La Plata
(12.50%) -- -- -- 3.6 169 19.8 3.6 169 19.8
Minto 9.4 3.9 1.2 27.2 3.2 2.8 36.5 3.3 3.9
Keno Hill (25%)
Underground -- -- -- 0.6 506 10.4 0.6 506 10.4
Elsa tailings -- -- -- 0.6 119 2.4 0.6 119 2.4
Los Filos 9.6 8.5 2.6 61.4 6.8 13.4 71 7 16
Total silver 104.3 424.8 529.1
Gold
Salobo (25%) 12.3 0.47 0.19 48.8 0.37 0.58 61.1 0.39 0.77
Sudbury (70%) -- -- -- 23.3 0.33 0.25 23.3 0.33 0.25
Minto 9.4 0.44 0.13 27.2 0.28 0.24 36.5 0.32 0.38
Total gold 0.32 1.07 1.39
ATTRIBUTABLE INFERRED RESOURCES
AS OF DEC. 31, 2012, UNLESS OTHERWISE NOTED
Inferred
Tonnage Grade Contained
Mt g/t Moz
Silver
Penasquito (25%)
Mill 31.7 9.1 9.3
Heap leach 12.7 1.6 0.7
San Dimas 6.9 300.4 66.3
Pascua-Lama 8.1 15.5 4
(25%)
Yauliyacu -- -- --
777 1.2 39.2 1.5
Neves-Corvo
Copper 25.4 47.2 38.6
Zinc 22.1 51 36.2
Rosemont 104.5 3.3 11.1
Constancia 223 1.9 13.4
Mineral Park 320.1 2.3 23.9
Zinkgruvan
Zinc 4.6 78 11.4
Copper 0.6 31 0.6
Aljustrel
Zinc 8.7 50.4 14
Copper 4.7 16 2.4
Campo Morado
(75%) 1.7 128.9 7.1
Stratoni 0.7 217 4.7
Loma de La Plata
(12.50%) 0.2 76 0.4
Minto 8.5 2.9 0.8
Keno Hill (25%)
Underground 0.2 340.8 1.9
Los Filos 239.2 6 46.5
Total silver 294.7
Gold
Salobo (25%) 37 0.31 0.37
Sudbury (70%) 18.9 0.67 0.4
777 0.59 1.96 0.04
Minto 8.5 0.24 0.07
Total gold 0.88
We seek Safe Harbor.