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Notes
1.
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All Mineral Reserves and Mineral Resources have been calculated in
accordance with the CIM Standards and NI 43-101, or the AusIMM JORC
equivalent.
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2.
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Mineral Reserves and Mineral Resources are reported above in millions of
metric tonnes ("Mt"), grams per metric tonne ("g/t") and millions of
ounces ("Moz").
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3.
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Individual qualified persons ("QPs"), as defined by the NI 43-101, for
the technical information contained in this document (including the
Mineral Reserve and Mineral Resource estimates) for the following
operations are as follows:
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a.
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Salobo - Christopher Jacobs, CEng MIMMM (Vice President and Mining
Economist), James Turner, BSc (Hons) MSc CEng MIMMM (Senior Mineral
Process Engineer), Barnard Foo, P.Eng., MBA (Senior Mining Engineer)
and Jason Ché Osmond (Senior Geologist) all of whom are employees of
Micon International Ltd.
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b.
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All other operations and development projects: the Company's QPs Neil
Burns, M.Sc., P.Geo. (Vice President, Technical Services); Samuel Mah,
M.A.Sc., P.Eng. (Senior Director, Project Evaluations), both employees
of the Company (the "Company's QPs").
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4.
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The Mineral Resources reported in the above tables are exclusiveof Mineral Reserves. The Minto, Campo Morado, Neves-Corvo, Zinkgruvan
and Aljustrel mines report Mineral Resources inclusive of Mineral
Reserves. The Company's QPs have made the exclusive Mineral Resource
estimates for these mines based on average mine recoveries and
dilution.
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5.
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Mineral Resources which are not Mineral Reserves do not have
demonstrated economic viability.
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6.
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Other than as detailed below, Mineral Reserves and Mineral Resources are
reported as of December 31, 2012 based on information available to the
Company as of the date of this document, and therefore will not reflect
updates, if any, after such date.
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a.
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Resources and Reserves for 777, Sudbury, Cozamin and Minto are reported
as of December 31, 2011.
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b.
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Resources and Reserves for San Dimas, Neves-Corvo and Zinkgruvan are
reported as of June 30, 2012.
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c.
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Resources and Reserves for Rosemont are reported as of August 28, 2012.
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d.
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Resources for the Constancia and Pampacancha deposits are reported as of
August 23, 2011 and April 2, 2012, respectively. Reserves for both
Constancia and Pampacancha deposits are reported as of August 8, 2012.
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e.
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Resources for Mineral Park are reported as of December 29, 2006 and
Reserves as of December 31, 2011.
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f.
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Resources and Reserves for Aljustrel's Feitais and Moinho deposits are
reported as of November 30, 2010, Resources for the Estaçao deposit are
reported as of December 31, 2007.
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g.
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Resources for Campo Morado's El Rey, Naranjo and Reforma deposits are
reported as of October 13, 2005.
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h.
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Resources and Reserves for Stratoni are reported as of August 10, 2010.
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i.
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Resources for Keno Hill's Elsa Tailings are reported as of April 22,
2010, Lucky Queen and Onek deposits as of July 27, 2011, Bermingham as
of June 27, 2012 and Flame and Moth as of January 30, 2013.
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j.
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Resources for Loma de La Plata are reported as of May 20, 2009.
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7.
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Process recoveries are the average percentage of silver or gold in a
saleable product (doré or concentrate) recovered from mined ore at the
applicable site process plants as reported by the operators.
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8.
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Mineral Reserves are estimated using appropriate process recovery rates
and the following commodity prices:
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a.
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Penasquito and Los Filos -$24.00 per ounce silver.
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b.
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San Dimas, Rosemont and Cozamin - $20.00 per ounce silver.
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c.
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Pascua-Lama - $22.00 per ounce silver.
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d.
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Lagunas Norte, Veladero, Pierina - $28.00 per ounce silver.
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e.
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Yauliyacu - $30.00 per ounce silver.
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f.
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777 - $22.00 per ounce silver and $1,100 per ounce gold.
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g.
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Neves-Corvo - 1.4% Cu cut-off for the copper Reserve and 5.0% Zn cut-off
for all the zinc Reserves except for Lombador which was reported above
a cut-off of 6.0% Zn.
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h.
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Constancia - $23.00 per ounce silver.
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i.
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Mineral Park - $7.50 per ounce silver.
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j.
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Zinkgruvan - 3.7% Zn equivalent cut-off for the zinc Reserve and 1.8% Cu
cut-off for the copper Reserve.
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k.
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Aljustrel - 1.5% Cu cut-off for all copper Reserves, 4.5% Zn cut-off for
all zinc Reserves.
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l.
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Campo Morado - $18.92 per ounce silver.
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m.
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Stratoni - $15.00 per ounce silver.
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n.
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Minto - $3.90 per ounce silver and $300 per ounce gold.
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o.
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Salobo - $1,150 per ounce gold.
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p.
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Sudbury - $975 per ounce gold.
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9.
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Mineral Resources are estimated using appropriate recovery rates and the
following commodity prices:
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a.
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Penasquito and Los Filos - $27.00 per ounce silver.
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b.
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San Dimas - $25.00 per ounce silver.
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c.
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Pascua-Lama, Lagunas Norte, Veladero and Pierina - $28.00 per ounce
silver.
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d.
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Yauliyacu - $30.00 per ounce silver.
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e.
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777 - $25.00 per ounce silver and $1,250 per ounce gold.
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f.
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Neves-Corvo - 1.0% Cu cut-off for the copper Resource and 3.0% Zn
cut-off for the zinc Resource.
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g.
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Rosemont and Cozamin - $20.00 per ounce silver.
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h.
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Constancia - $22.00 per ounce silver.
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i.
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Mineral Park - $7.50 per ounce silver.
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j.
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Zinkgruvan - 3.1% Zn equivalent cut-off for the zinc Resource and 1.5%
Cu cut-off for the copper Resource.
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k.
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Aljustrel - 1.5% Cu cut-off for all copper Resources, 4.5% Zn cut-off
for Feitais and Moinho zinc Resources and 4.0% for Estação zinc
Resources.
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l.
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Campo Morado - $18.92 per ounce silver for the G-9 zones and 5% Zn
cut-off for the El Rey, Naranjo and Reforma deposits.
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m.
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Stratoni - $15.00 per ounce silver.
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n.
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Minto - 0.5% Cu cut-off.
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o.
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Loma de La Plata - $12.50 per ounce silver.
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p.
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Keno Hill - $15.25 per ounce silver for the Southwest and 99 Zones,
$14.50 per ounce silver for the East Zone, $17.00 per ounce silver for
the Elsa Tailings, $18.50 per ounce silver for the Lucky Queen and Onek
deposits, $23.00 per ounce silver for Bermingham and $24.00 per ounce
silver for Flame and Moth.
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q.
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Salobo - $1,150 per ounce gold.
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r.
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Sudbury - $975 per ounce gold.
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10.
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The San Dimas silver purchase agreement provides that from August 6,
2010 until August 5, 2014, Primero Mining Corp. ("Primero") will
deliver to the Company a per annum amount equal to the first 3.5
million ounces of payable silver produced at San Dimas and 50% of any
excess, plus the Company will receive an additional 1.5 million ounces
of silver per annum to be delivered by Goldcorp Inc. ("Goldcorp").
Beginning August 6, 2014, Primero will deliver to the Company a per
annum amount equal to the first 6.0 million ounces of payable silver
produced at San Dimas and 50% of any excess, for the life of the mine.
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11.
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The Company's attributable Resources and Reserves for Pierina, Lagunas
Norte, Veladero, Cozamin and Yauliyacu silver interests in addition to
the Sudbury and 777 gold interests have been constrained to the
production expected for the various contracts.
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12.
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The Company's Yauliyacu silver purchase agreement (March 2006) with
Glencore International AG provides for the delivery of up to 4.75
million ounces of silver per year for 20 years. In the event that
silver sold and delivered to Silver Wheaton in any year totals less
than 4.75 million ounces, the amount sold and delivered to Silver
Wheaton in subsequent years will be increased to make up for any
cumulative shortfall, to the extent production permits. Depending upon
production levels it is possible that the Company's current
attributable tonnage may not be mined before the agreement expires.
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13.
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The 777 purchase agreement provides that Hudbay Minerals Inc. ("Hudbay")
will deliver 100% of the payable silver for the life of the mine and
100% of the payable gold until completion of the Constancia project,
after which the gold stream will reduce to 50%. The gold figures in
this table represent the attributable Resources and Reserves
constrained to the production expected for the 777 contract.
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14.
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In reliance upon Section 9.2 of NI 43-101, all technical information in
this document regarding Penasquito, San Dimas, Pascua-Lama and 777 was
sourced by the Company from the following SEDAR (www.sedar.com) filed documents:
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a. Penasquito - Goldcorp Annual Information Form filed on March 1,
2013;
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b. San Dimas - Primero MD&A filed on February 21, 2013;
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c. Pascua-Lama - Barrick Gold Corp. Fourth Quarter and Year-end
Report -2012 filed on February 14, 2013; and
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d. 777 - Hudbay Annual Information Form filed on March 30, 2012.
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The Company QP's have approved the disclosure in this document in
reliance on such documents.
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15.
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The Mineral Park and Rosemont Resources and Reserves do not include the
SX/EW leach material since this process does not recover silver.
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16.
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The Company has filed a technical report for Salobo, which is available
on SEDAR.
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17.
|
Silver and gold are produced as by-product metal at all operations with
the exception of silver at the Keno Hill mine and Loma de La Plata
project; therefore, the economic cut-off applied to the reporting of
silver and gold Resources and Reserves will be influenced by changes in
the commodity prices of other metals at the time.
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CAUTIONARY LANGUAGE REGARDING RESERVES AND RESOURCES
For further information on Mineral Reserves and Mineral Resources and on
Silver Wheaton more generally, readers should refer to Silver Wheaton's
Annual Information Form for the year ended December 31, 2011, and other
continuous disclosure documents filed by Silver Wheaton since January
1, 2012, available on SEDAR at www.sedar.com. Silver Wheaton's Mineral Reserves and Mineral Resources are subject to
the qualifications and notes set forth therein. Mineral Resources which
are not Mineral Reserves do not have demonstrated economic viability.
Cautionary Note to United States Investors Concerning Estimates of
Measured, Indicated and Inferred Mineral Resources: The information contained herein uses the terms "Measured", "Indicated"
and "Inferred" Mineral Resources. United States investors are advised
that while such terms are recognized and required by Canadian
regulations, the United States Securities and Exchange Commission does
not recognize them and expressly prohibits U.S. registered companies
from including such terms in their filings with the SEC. "Inferred
Mineral Resources" have a great amount of uncertainty as to their
existence, and as to their economic and legal feasibility. It cannot be
assumed that all or any part of an Inferred Mineral Resource will ever
be upgraded to a higher category. Under Canadian rules, estimates of
Inferred Mineral Resources may not form the basis of feasibility or
other economic studies. United States investors are cautioned not to
assume that all or any part of Measured or Indicated Mineral Resources
will ever be converted into Mineral Reserves or that any exploration
potential will ever be converted to any category of Mineral Reserves or
Mineral Resources. United States investors are also cautioned not to
assume that all or any part of an Inferred Mineral Resource exists, or
is economically or legally mineable. United States investors are urged
to consider closely the disclosure in Silver Wheaton's Form 40-F, a
copy of which may be obtained from Silver Wheaton or from http://www.sec.gov/edgar.shtml.
Mr. Neil Burns, Vice President of Technical Services, is a "qualified
person" as such term is defined under National Instrument 43-101, and
has reviewed and approved the contents of this news release.
About Silver Wheaton
Silver Wheaton is the largest precious metals streaming company in the
world. Based upon its current agreements, forecast 2013 attributable
production is approximately 33.5 million silver equivalent ounces3, including 145 thousand ounces of gold. By 2017, annual attributable
production is anticipated to increase significantly to approximately 53
million silver equivalent ounces3, including 180 thousand ounces of gold. This growth is driven by the
Company's portfolio of low-cost and long-life assets, including silver
and precious metal streams on Barrick's Pascua-Lama project, Hudbay's
Constancia project, and Vale's Salobo and Sudbury mines.
CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS
The information contained herein 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. Forward-looking
statements, which are all statements other than statements of
historical fact, include, but are not limited to, statements with
respect to the future price of silver and gold, the estimation of
mineral reserves and resources, the realization of mineral reserve
estimates, the timing and amount of estimated future production, costs
of production, reserve determination, reserve conversion rates and
statements as to any future dividends. Generally, these forward-looking
statements can be identified by the use of forward-looking terminology
such as "plans", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or variations of
such words and phrases or statements that certain actions, events or
results "may", "could", "would", "might" or "will be taken", "occur" or
"be achieved". Forward-looking statements are subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
Silver Wheaton to be materially different from those expressed or
implied by such forward-looking statements, including but not limited
to: fluctuations in the price of silver and gold; the absence of
control over mining operations from which Silver Wheaton purchases
silver or gold and risks related to these mining operations including
risks related to fluctuations in the price of the primary commodities
mined at such operations, actual results of mining and exploration
activities, economic and political risks of the jurisdictions in which
the mining operations are located and changes in project parameters as
plans continue to be refined; and differences in the interpretation or
application of tax laws and regulations; as well as those factors
discussed in the section entitled "Description of the Business - Risk
Factors" in Silver Wheaton's Annual Information Form available on SEDAR
at www.sedar.com and in Silver Wheaton's Form 40-F on file with the U.S. Securities and
Exchange Commission in Washington, D.C. Forward-looking statements are
based on assumptions management believes to be reasonable, including
but not limited to: the continued operation of the mining operations
from which Silver Wheaton purchases silver or gold, no material adverse
change in the market price of commodities, that the mining operations
will operate and the mining projects will be completed in accordance
with their public statements and achieve their stated production
outcomes, and such other assumptions and factors as set out herein.
Although Silver Wheaton has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that forward-looking statements will prove to
be accurate. Accordingly, readers should not place undue reliance on
forward-looking statements. Silver Wheaton does not undertake to update
any forward-looking statements that are included or incorporated by
reference herein, except in accordance with applicable securities laws.
---------------------------------------- 3 Silver equivalent production forecast assumes a gold/silver ratio of
53.3:1
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