Top cuts (grade caps) are applicable at the Kupol Mine. Capping levels were
calculated for different data spacings because the risk associated with high grade
increases with decreased data density. Assay intervals were capped (cut) prior to
compositing and grade estimation. The approach used to determine Au and Ag cap
levels for Kupol Vein samples is described in the following paragraphs.
Sectional review and field observation indicates geological, grade and geometric
differences in the vein at locations other than area (or zone) designations (South
Extension/650 (SE), South (SZ), Big Bend (BB), Central (CZ), North (NZ) and North
Extension (NE)). Changes in mean assay grades and coefficients of variation (COV)
by 100 m increments in northing coordinates provide additional support to field
observations that different cap grades should be applied in different areas of the
deposit.