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MN00012-RPT-0001v: 0 te: 11 January 2012

inerals and M

PEMN000Revision N

nterCorp

nmaTechFeas

1 Januar

he following

lint Donkin M

. Mohan Sriv

n Dreyer, MA

ngel Mondra

nthony Sanfo

1

Metals

012-RPT-Number 0

rnatipora

aculahnicasibiliry 2012

g QPs autho

MAusIMM(CP

vastava, P. G

AusIMM(CP)

gon, MAusIM

ord, Pr.Sci.N

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1 1.1.1.1.1.1.1.1.1.

2

3

4 4.4.4.4.4.4.4.

5 5.5.5.5.

6 6.6.6.6.6.6.

7 7.7.7.7.7.7.

8 8.8.

9 9.9.9.9.9.


Table of C

Sum1 Reso2 Mine3 Minin4 Proc5 Capi6 Ope7 Econ8 Proje9 Conc

Intro

Relia

Prop1 Perm2 Prop3 Prop4 Prop5 Peru6 Surfa7 Envi

Acce1 Acce2 Clim3 Loca4 Phys

Histo1 Intro2 Histo2.1 20092.2 20102.3 20102.4 2011

Geo1 Regi1.1 Prop2 Geo2.1 Geo2.2 Geo3 Mine

Depo1 Epith2 Epith

Expl1 20072 20083 20094 20105 2011

1

Contents

mmary ources and Re Geomechang cessing and Mital Cost rating Cost nomic Analysect Implemenclusions and

oduction and

ance on Oth

perty Descrimits perty Ownersperty Descripperty Boundau’s Mining Titace Rights ronmental Li

essibility, Cessibility ate

al Resourcessiography

ory oduction orical Minera9 Mineral Re0 Mineral Re0 Mineral Re1 Mineral Re

logical Settional Geologperty Geologylogy of the Qlogy of the Alogy of the C

eralization of

osit Types hermal Au-Aghermal Depo

loration 7 Ventura Ex8 Ventura Ex9 Ventura Ex0 IMZ Explor1mHochschil

s

Reserves Estnical Conditi

Metallurgy

sis ntation Plan Recommen

d Terms of

her Experts

iption and L

ship and Agreption and Tenaries tle Laws

iabilities

Climate, Loca

s and Infrastr

al Resource asource Estimsource Estimsource Estimsource Estim

ing and Mingy y

Quellopata VeAnta Patari VCascara Hual

the Angela V

g Deposit Closit Sub-Type

xploration Proxploration Proxploration Proration Prograd Exploratio

timateions

ndations

Reference

Location

eementsnure

al Resource

ructure

and Reservematesmatemate and Premate

neralization

einseinsllhua VeinsVein

assification Ses

ogramogramogram

amn Program

es, Infrastru

e Estimates

eliminary Ass

Systems

cture & Phy

sessment

ysiography

1 1 2 2 2 4 4 5 6 6

9

12

13 14 14 15 18 18 19 19

20 20 20 20 20

21 21 21 21 22 22 24

26 26 27 29 29 29 31

34 34 34

37 37 37 38 39 40

PERevDat

101010101010

1111111111

12121212121212

13131313131313131313131313131313

14141414141414141414141414141414

15151515


0 Drill0.1 Core0.1.1 20070.1.2 20090.1.3 20100.1.4 2011

1 Sam1.1 Sam1.2 Ship1.3 Gold1.4 Bulk

2 Data2.1 Verif2.2 Inde2.3 Qua2.3.1 Dupl2.3.2 Blan2.3.3 Stan

3 Mine3.1 Intro3.2 Key 3.2.1 Varia3.2.2 Dom3.3 Sam3.4 Test3.4.1 Mine3.4.2 Com3.4.3 Grav3.4.4 Who3.4.5 Rheo3.4.6 Thic3.4.7 Cyan3.5 Meta3.6 Conc

4 Mine4.1 Mine4.1.1 Vein4.1.2 Data4.1.3 Geo4.1.4 Stati4.1.5 Grad4.1.6 Vario4.1.7 Bloc4.1.8 Ordi4.1.9 Chec4.1.10 Reso4.1.11 Repo4.1.12 Sum4.1.13 Grad4.1.14 Estim

5 Mine5.1 Mine5.2 Dilut5.3 Ore

1

ing e Drilling 7 - 2008 Ven9 Ventura Dr0 IMZ Drill Pr1 Hochschild

mple Preparample Preparatpment and Std Analysis Density Dat

a Verificatiofication of Dapendent Chelity Assuranclicate Sampleks

ndards

eral Processoduction Sample Seleability Compo

main Composmple Preparat

work Prograeralogy

mminution vity concentraole Ore Cyanology kening and Fnide Destrucallurgical Recclusions

eral Resourceral Resources included in

a logical Domastical Analys

de Capping ograms k Model Connary Kriging cks of Block ource Classiforting Cutoff

mmary of Clasde-tonnage Cmate of Grad

eral Reserveeral Reserve tion Loss

ntura Drill Prorill Programrogram Drill Progra

ation, Analystion torage of Sam

ta

n atabase fromecks ce and Qualites

sing and Me

ection Criteriosites

sites tion ms

ation and Intidation

Filtrationction coveries

ce Estimatee Estimates

n mineral res

ains sis of Gold an

nfiguration

Model Estimfication

ssified MinerCurvesde of Dilution

e EstimateEstimate Ca

ogram

m

sis, and Sec

mples

m Assay Cert

ty Control Pr

etallurgical T

a

tensive Leac

e

source estima

nd Silver Ass

mates

ral Resource

n

alculation Pro

curity

ificates

rograms

Testing

ching

ates

says

es

ocedure

41 41 41 42 43 44

45 45 45 45 46

47 47 47 49 49 51 53

54 54 56 59 60 61 61 61 62 63 63 66 66 67 67 67

68 68 68 68 71 73 76 77 78 79 80 84 86 86 89 93

94 94 95 95

PERevDat

15

1616161616161616161616

1717171717171717171717171717171717171717171717171717

1818181818181818181818181818181818


5.4 Mine

6 Mini6.1 Mine6.2 Mine6.3 Mine6.4 Mine6.5 Mine6.5.1 Deve6.6 Main6.7 Mine6.8 Prod6.9 Anci

7 Reco7.1 Gene7.2 Plan7.2.1 Thro7.2.2 Head7.2.3 Proc7.2.4 Desi7.3 Flow7.3.1 Unit 7.3.2 Crus7.3.3 Grind7.3.4 Leac7.3.5 Coun7.3.6 Solu7.3.6.1 Solu7.3.6.2 Preg7.3.6.3 Zinc 7.3.7 Gold7.3.8 Tailin7.3.9 Tailin7.3.10 Copp7.3.11 Past7.3.12 Wate7.3.13 Reag7.3.14 Air S7.4 Proc

8 Proj8.1 Intro8.2 Site 8.3 High8.4 Site 8.5 Raw8.6 Pota8.7 Sew8.8 Adm8.8.1 Main8.8.2 Labo8.8.3 Acco8.8.4 Adm8.8.5 Ware8.8.6 Anci8.9 Secu8.10 Com

1

eral Reserves

ng Methodse Design Base Design Dese Operation Ce Operationse Developmeelopment Sun Equipment e Production duction Schellary Service

overy Methoeral t Design Bas

oughput and d Grade cessing Stratgn Criteria S

w Sheet DeveProcess Sel

shing ding ching nter Current tion Clarification Clarifica

gnant SolutioPrecipitation

d Room ngs Detoxificngs Disposaper and Arsete Backfill er Services gents

Supply and Ocess Control

ect Infrastruoduction Access Roa

h Voltage PowPower Distri

w Water Suppable Water age Treatme

ministration anntenance Facoratory ommodation

ministration Oehouse llary Buildingurity

mmunications

s

s sis scriptionCriteria

ent upport

Support Wodule

es

ods

sis Availability

tegy Summaryelopmentection

Decantationation and Zination on De-Aeration

cationl

enic Remova

Oxygen ServiPhilosophy

ucture

d wer Supplyibutionply

ent nd Plant Sitecilities and F

Offices

gs

s

ork

n (CCD) Concc Precipitatio

on

al

ices

e Buildingsuel Storage

centrate Soluon

ution Recoveery

95

97 97 97

102 102 102 103 103 103 104 105

106 106 106 106 106 106 107 109 111 112 112 112 112 113 113 113 113 113 113 114 114 114 114 114 115 115

116 116 116 117 119 119 119 119 120 120 120 120 120 120 120 121 121

PERevDat

181818181818181818

19191919

2020202020202020202020202020

2121212121212121212121212121

2222222222222222222222

23

24


8.11 Inter8.12 Tailin8.12.1 Gene8.13 Wate8.13.1 Drain8.13.2 Clea8.13.3 Sedi8.13.4 Tailin8.13.5 Proje

9 Mark9.1 Refin9.1.1 Refin9.1.2 Com

0 Envi0.1 Lega0.2 Envi0.2.1 Intro0.2.2 Phys0.2.3 Biolo0.2.4 Hum0.2.5 Stak0.2.6 Statu0.2.7 Impa0.2.8 Envi0.2.9 Com0.2.10 Clos0.3 Publ

1 Cap1.1 Capi1.1.1 Gene1.1.2 Capi1.1.3 Minin1.1.4 Proc1.1.5 Sust1.2 Ope1.2.1 Gene1.2.2 Sum1.3 Basi1.4 Mine1.5 Proc1.6 Gene

2 Econ2.1 Over2.1.1 Assu2.1.2 Meth2.1.3 Sens2.1.4 Payb2.1.5 Mine2.2 IMZ 2.2.1 Assu2.2.2 Resu2.2.3 Sens

3 Adja

4 Othe

1

rnal Plant Rongs Storage eral er Managemnage

an Water Divementation anngs Storage ect Site Wate

ket Studies ning nery Options

mmercializatio

ironmental aal Frameworkronmental Im

oduction sical Environogical Enviro

man Interest Ekeholder Mapus of Land Oact Identificatronmental M

mmunity Relasure Plan ic Participati

ital and Opeital Cost Sumeral ital Cost Esting Capital Ccess Plant Cataining Capitarating Cost Seral

mmary s of Estimate

e Operating Ccessing Cost eral and Adm

nomic Analyrall Project Eumptions hodology sitivity Analysback e Life Specific Eco

umptions ults sitivity Analys

acent Prope

er Relevant

oads Facility

ent Plan

ersionsnd Seepage Facility

er Balance

and Contra

s on Costs for

and Social Sk mpact Study

mentonmentEnvironmentppingOwnershiption and Eva

Management ations Plan

on Process

erating Costmmary

imate Summost Summarapital Cost Sal Cost Sum

Summary

e Cost

ministrative (

ysis Economic An

sis

onomic Analy

sis

rties

Data and In

Ponds

cts

Doré

Studies

t

aluationPlan

t Estimate

maryrySummary

mary

G&A) Cost

alysis

ysis

nformation

121 121 121 122 123 123 123 123 123

126 126 126 126

127 127 127 127 127 128 130 130 131 131 132 132 133 134

135 135 135 135 137 138 138 139 139 139 140 141 142 143

145 145 145 146 150 151 151 151 151 152 152

154

155

PERevDat

2424

252525252525

262626262626262626

27

28

29


4.1 Mine4.2 Proje

5 Inter5.1 Geo5.2 Geo5.3 Minin5.4 Proc5.5 Tailin

6 Reco6.1 Geo6.2 Geo6.3 Plan6.4 Meta6.5 Infra6.6 Envi6.7 Risk 6.8 Budg

7 Refe

8 Date

9 Cert

1

e Geomechaect Implemen

rpretation alogy and Resmechanical ng cess Plant ngs Storage

ommendatiology and Resmechanical &t Site Geotec

allurgical andastructure ronmental anAssessmen

get

erences

e and Signat

tificates of Q

nical Overvientation Sche

nd Conclussources

Facility

ons sources& Miningchnical

d Processing

nd Socialt

ture Page

Qualified Pe

ewedule

ions

g

rsons

155 156

158 158 158 158 159 159

161 161 161 162 162 162 163 164 164

165

166

167

PERevDat

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Fi

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ist of Fig

gure 4.1 - L

gure 4.2 - In

gure 7.1 - S

gure 7.2 - In

gure 7.3 - G

gure 7.4 - L

gure 7.5 - C

gure 8.1 - L

gure 12.1 - V

gure 12.2 - V

gure 12.3 - ilver Assayshemex Labo

gure 12.4 - he Original Som the ALS

gure 12.5 -

gure 12.6 -

gure 12.7 -

gure 13.1 -

gure 13.2 -

gure 14.1 - ith section l

gure 14.2 - ole assays

gure 14.3 - Veometries oection line, w



gure 14.6 - eological do



gure 14.9 -

1

gures

ocation Map

nmaculada P

Simplified Re

nmaculada P

Geology of th

ongitudinal

Cross Sectio

S and HS E

Verification

Verification

Scatter Plots from the Soratory

Scatter PlotSilver AssayS Chemex La

Control Cha

Control Cha

Control Cha

Block Diagr

Metallurgica

Horizontal flines used in

Relative con

Vertical cron A-A' (see with vein int

Vertical cron B-B' (see with vein int

Vertical cron C-C' (see with vein int

Side-by-sidomains

Side-by-sidomains

Side-by-sidomains

Silver-gold

p for the Inm

Property Mi

egional Geo

Property Ge

he Quellopa

Section wit

on 10200N o

pithermal D

Sample Re

Sample Re

t for Pulp DuSGS Laborat

t for Coarseys from the Saboratory

art for Exter

art for Exter

art for Exter

ram of the P

al Drill Hole

footprint of n later figur

ntribution o

oss-section, Figure 14.1tersections



e boxplots o

e boxplots o

e boxplots o

scatterplots

maculada Pr

ning Conce

ology of Per

eology Map

ata Veins

th Grade Co

of the Angela

Deposit Mod

esults for Go

esults for Sil

uplicates, Story to the D

e Reject DupSGS Labora

rnal Gold Bla

rnal Silver B

rnal Gold Sta

Processing F

Location

the eight dores

of each doma

facing nort) along withshown as t



of the distri

of the distri

of the distri

s in the Ang

roperty

ssions

u

ontours for t

a Vein (look

el

old, June 20

lver, June 2

howing the Duplicate Si

plicates, Shoatory to the

anks

Blanks

andards

Facility

omains used

ain to total m

heast, showh the drill hohicker black



bution of go

bution of si

bution of th

gela Vein an

the Angela V

king north ea

010

010

Comparisolver Assays

owing the CDuplicate S

d for resour

metal conte

wing the inteoles within ±k lines



old assays i

lver assays

he Ag:Au rat

d the Angel

Vein

ast)

on of the Oris from the A

omparison Silver Assay

rce estimatio

ent in the dri

erpreted vei±50m of the



n the eight

in the eight

tio in the eig

a Splay

13

16

26

28

30

32

33

35

48

48

ginal ALS

50

of ys

51

52

52

53

55

57

on, 69

ill 69

n

71

n

71

n

72

73

t 74

ght 75

75

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gure 14.10 -ein used to

gure 14.11 -lver-equival

gure 14.12 -

gure 14.13 -

gure 14.14 -

gure 14.15 -

gure 14.16 -or the Angel

gure 14.17 -

gure 14.18 -

gure 14.19 -

gure 14.20 -

gure 16.1 -

gure 16.2 -

gure 16.3 -

gure 16.4 -

gure 16.5 - he Angela Ve

gure 16.6 - A

gure 17.1 -

gure 18.1 -

gure 18.2 - T

gure 18.3 - A

gure 22.1 -

1

- Cumulativeselect capp

- Variogramlent

- Resource

- Check of e

- Check of s

- Swath plot

- Longitudina Vein

- Longitudin

- Resource t

- Resource

- Resource s

Mining meth

Main Infrast

Main Infrast

Stopes and

Main accessein (looking

Annual Min

Overall Proc

Route of Hig

Tailings Sto

Average Sit

Overall Proj

e probabilitping levels

m model (dot

block mode

estimates of

silver-equiva

ts comparin

nal section s

nal section s

tonnage ver

gold grade

silver grade

hods applic

tructure for

tructure for

main infras

s ramps, levg southeast)

ing Graphic

cess Plant F

gh Voltage T

orage Facilit

te Water Bal

ject Sensitiv

y plots of go

tted line) an

el configurat

f volume pro

alent grade

ng block est

showing the

showing fin

rsus reporti

versus repo

e versus rep

cable to the A

Cut and Fil

Sub Level S

structure vie

vels and inte

c Sequence

Flowsheet

Transmissio

ty in relation

lance (Year

vity Analysi

old and silv

d experimen

tion

oportions

estimates

imates to or

e first step o

al classifica

ng cutoff

orting cutoff

porting cuto

Angela Vein

l and Mining

Stoping and

ew (looking

ernal ramps

looking nor

on Line

n to the Pro

1)

s – Base Ca

ver assays in

ntal variogr

riginal drill

of classifica

ation for the

f

ff

n

g Details

d Mining Det

southeast)

s with a sche

rth-westerly

cess Plant (

ase

n the Angela

am (solid lin

hole data

ation proced

e Angela Vei

tails

ematic view

y

(looking eas

a 76

ne) of 78

79

81

82

83

dure 85

in 85

90

91

92

97

99

100

101

w of 101

105

110

118

st) 122

124

151

PERevDat

L

Ta

Ta

Ta

Ta

Ta

Ta

Ta

Ta

Ta

Ta

TaDo

TaSe

TaFe

Ta

TaSo

Ta

Ta

Ta

Ta

Ta

Ta

Ta

Ta

Ta

Ta

TaAd

Ta

Ta

Ta

Ta

Ta


ist of Ta

able 1.1 - Bu

able 1.2 - Ov

able 1.3 - Un

able 1.4 - Ov

able 1.5 - IM

able 2.1 - Qu

able 2.2 - Ab

able 4.1 - Inm

able 4.2 - Inm

able 6.1 - His

able 6.2 - Inmollars)

able 6.3 - Aneptember 20

able 6.4 - Inmebruary 201

able 8.1 - Ch

able 9.1 - Rooutheast Pr

able 9.2 - Su

able 9.3 - Su

able 10.1 - D

able 10.2 - S

able 13.1 - Z

able 13.2 - S

able 13.3 - V

able 13.4 - D

able 13.5 - S

able 13.6 - S

able 13.7 - Gddition

able 13.8 - S

able 13.9 - B

able 13.10 -

able 13.11 -

able 14.1 - C

1

bles

ulk Cyanidat

verall Projec

nit Operating

verall Projec

MZ’s Attribut

ualified Pers

bbreviations

maculada P

maculada M

storical Exp

maculada A

ngela Vein, I010 at US$1

maculada P1

haracteristic

ock Chip Reospect Area

ummary of C

ummary of 2

Drill Holes o

Significant R

Zone Compo

Summary of

Variability Co

Domain Com

Summary of

Summary of

Gravity Sepa

Standard Dir

Bulk Direct C

Direct Cyan

Rheology R

Capping leve

tion Testwo

ct Capital Co

g Cost Sum

ct Economic

table Produc

sons and Ar

s and Symbo

roperty UTM

Mining Conc

ploration on

Angela Vein

Inmaculada ,000/oz gold

roject, Ange

cs of Epithe

esults for theas

Channel Sam

2011 surface

n the Inmac

Representat

osites Drill H

Variability S

omposite H

mposites He

the Detecte

Bond Work

aration / Dire

rect Cyanida

Cyanidation

nidation Var

Results

els used for

ork Results

osts by Area

mmary (base

c Sensitivity

ction and Ec

reas of Resp

ols

M Coordinat

essions

the Inmacu

Scoping Stu

Project – Md and $17/oz

ela Vein Dep

rmal Depos

e Anta Pata

mples in Qu

e exploratio

culada Prope

ive Intercep

Hole Identifi

Samples Lo

ead Assays

ad Assays

ed Gold Bea

k Indices

ect Cyanida

ation

riability Com

r gold and s

a

d on 3,506 t

y Summary

conomic Pa

ponsibility

tes

ulada Prope

udy (100% P

Mineral Resoz silver)

posit - Mine

sit Sub-Type

ri, Cascara-

ellopata are

n

erty, 2007 –

pts for the 20

cation

ocations

s

aring Particle

ation: Conce

mposites

ilver assays

t/d milled)

arameters

rty, 1990-20

Project Basi

ource Estim

ral Resourc

es

Huallhua an

ea

– December

007 to 2010

es in the Sa

entrate Lead

s in each do

009

is, all in US

ates (as of 9

ce Estimate

nd Quellopa

2010

Drill Progra

amples

d Nitrate

omain

3

4

4

5

5

9

9

13

17

21

23

9 24

– 24 25

36

ata 38

39

40

41

am 43

58

59

59

60

61

62

63

64

64

65

66

77

PERevDat

Tam

Ta48

Ta$

Taof

Tacu

Tacu

Tacu

Ta48

Ta$

Tacu

Ta

Ta

Ta

Ta

Ta

Ta

Ta

Ta

Ta

Ta

Ta

Ta

Ta

Ta

Ta

Ta

Ta

Ta

Ta

Ta

Ta


able 14.2 - Pmetal in situ

able 14.3 - E8.30 /t, as of

able 14.4 - E48.30 /t, as

able 14.5 Esf $ 48.30 /t, a

able 14.6 - Eutoff of $ 48



able 14.9 Es8.30 /t, as of

able 14.10 - 48.30 /t, as

able 14.11 - utoff of $ 48

able 15.1- In

able 15.2 - G

able 15.3 - E

able 16.1 - P

able 16.2 - A

able 17.1 - K

able 20.1 - L

able 21.1 - O

able 21.2 - S

able 21.3 - M

able 21.4 - P

able 21.5 - S

able 21.6 - U

able 21.7 - D

able 21.8 - D

able 21.9 - U

able 21.10 -

able 21.11 –

able 21.12 -

able 22.1 - E

able 22.2 - O

1

Parameters u

Estimated Mf 11 January

Estimated Mof 11 Janua

stimated Minas of 11 Jan

Estimated M.30 /t, as of



stimated Minf 11 January

Estimated Mof 11 Janua


nmaculada P

Geometrical

Economic an

Production R

Annual Prod

Key Process

List of Sensi

Overall Proje

Split Betwee

Mining Cape

Process Plan

Sustaining C

Unit Operatin

Derivation of

Derivation of

Unit Cost for

Unit Cost fo

– Process Op

G&A Cost E

Economic An

Overall Proje

used for the

ineral Resoy 2012

ineral Resoary 2012

neral Resounuary 2012

ineral Reso11 January



neral Resouy 2012

Mineral Resary 2012

Mineral Res11 January

Project - Min

and Dilutio

nd Metallurg

Ramp-up du

duction Plan

s Design Cri

ible Flora an

ect Capital C

en Mining Ca

ex Cost Sum

nt Capital C

Capital Expe

ng Cost Sum

f Mine Oper

f Plant Oper

r Cut and Fi

or Sub Leve

perating Co

Estimate (ba

nalysis Calc

ect Econom

e calculation

ources for th

ources for th

rces for the

ources for th2012

ources for th2012

ources for th2012

rces for the

ources for t

ources for t2012

neral Reserv

n Paramete

gical Parame

uring the firs

n

teria Summ

nd Fauna

Costs by Are

apex and Op

mmary

ost Summa

enditures

mmary (bas

rating Cost

rating Cost

ll Mining (ba

el Stoping M

ost Estimate

ased on 3,50

culation

ic Analysis

n of the reve

he Angela Ve

he Angela Sp

e Angela R1

he Angela R2

he Angela R3

he Angela R4

e Martha Vei

the Lourdes

the Inmacul

ves

rs

eters

st year of op

mary

ea

pex

ry

ed on 3,506

ased on 3,5

Mining (base

(Based on

06 t/d ore m

(Base Case

enue produc

ein, at a rev

play, at a re

Branch, at

2 Branch, at

3 Branch, at

4 Branch, at

in, at a reven

s Vein, at a r

ada Project

peration

6 t/d milled)

06 t/d ore m

d on 3,506 t

3,506 t/d ore

illed)

e)

ced by a gra

venue cutoff

venue cutof

a revenue c

t a revenue

t a revenue

t a revenue

nue cutoff o

revenue cuto

, at a revenu

mined)

t/d ore mine

e milled)

am of 86

f of $ 87

ff of 87

cutoff 87

88

88

88

of $ 88

off of 88

ue 89

94

95

96

104

104

107

129

136

137

137

138

139

139

140

140

141

ed)142

143

144

147

148

PERevDat

Ta

Ta

Ta

Ta


able 22.3 - O

able 22.4 - IM

able 22.5 - P

able 24.1 - G

1

Overall Proje

MZ’s Attribu

Pre-tax Sens

Geomechani

ect Econom

utable Produ

sitivity Analy

ical Core Ho

ic Sensitivit

uction and E

yses Attribu

oles

ty Summary

Economic P

utable to IMZ

y

Parameters

Z (base casee in bold)

150

152

153

155

PERevDat

1

1.


Sum

Auseassiscom(Suywith 40%overand

The comthe Aand

The millio3.37 and 1.27 apprprod

The non-a preperiorese

All c

1 Reso

At a to h144 are ewith estimsplay

Theshole appr

The brangeomthe M

Meaand wast

1

mmary

enco Peru Sst in the propleted by A

yamarca). IMHochschild ) and becom

rall managemproject infras

purpose of pliant, technAngela Vein Paucar de S

Angela Veinon (M) metrigrams per m30.14 Moz AMt/y. The

roximately 7 uced.

Feasibility S-discounted pe-tax NPV ofod is 4.3 yearves with go

urrency amo

ources and

revenue cutave Measurg/t Ag, with estimated toan in situ m

mated using ys and branc

se Mineral Rdata availa

roximately 10

mineral resches) and

mechanical rMining Units

sured and inprobable reste.

S.A.C (Ausenoduction of aAusenco on MZ announce

Mining plc (me the operament of the Fstructure.

this report ical report odeposit loca

Sara Sara, De

n is a free mic tonnes (inmetric tonneAg. The objeexpected lifyears. Durin

Study (FS) dpre-tax net pf $181 millioars. This anald and silver

ounts are exp

Reserves E

toff of $48.30red and Indan in situ m be 4.94 Mt etal content ordinary kr

ches.

Resource Estable as of J02,867 m we

erve estimawas base

recommenda(MU) to whic

ndicated resoserves, while

nco) was coa technical re

the Inmacued on 12 Oc(Hochschild)ator of the InFS, as well a

is to providn the feasibiated on the epartment of

lling, non-refcluding allow(g/t) Au and

ective of the fe of procesng this time,

etermined thpresent valuen. The pre-taalysis was cprices of $1

pressed in U

Estimate

0 /t, the veindicated Resometal content

of Inferred Rof 0.62 Moz

riging within

timates haveJune 2011. Aere drilled.

tion only coed on the ations and pch dilution an

ources weree the materia

ntacted by Ieport summaulada projectctober 2010 t

where by Hnmaculada Pas the desig

de an indepility study, asInmaculada f Ayacucho, S

fractory gold/wance for md 120.2 g/t Agproject is to

ssing operata total of 0

hat the projee (NPV) of $3ax internal ra

completed us,100 and $18

nited States

ns in the Queources of 7t of 0.93 MozResources, wz Au and 24.

wireframes

e an effectiveA total of 3

onsidered theresource b

otential stopnd ore loss w

used as inpal correspon

nternational arizing the Ft on behalf that it had s

Hochschild wProperty. Aun and cost e

pendent, Nas well as an property in Southern Pe

/silver deposmining dilution

g, corresponmine and p

tions from c.78 Moz of A

ect is econom323 million, aate of return sing only the8 per troy ou

dollars ($).

ellopata area.07 Mt, withz Au and 32with grades 17 Moz Ag.that define

e date of 11 326 core dril

e Angela Veblock modepe sizes whicwas applied.

put for the reding to infer

Minerals CoFeasibility St

of Minera signed a framwould hold a

senco was restimation of

ational Instruupdated resthe province

eru (the “Prop

sit with a minn and ore londing to 0.84rocess this d

commencemAu and 26.5

mically viableand at a 5% (IRR) is 18%

e proven andunce respecti

a of the Proph grades of2.79 Moz Agof 3.91 g/t AThese minethe geome

January 201ll holes with

ein (not the el, mining ch assisted

espective corred resource

orporation (IMtudy (FS) thaSuyamarca

mework agre60% interes

responsible ff the process

ument (NI) 4source estimes of Parinacperty”).

neral reserveoss) with gra4 M ounces (deposit at a ent of rampMoz of Ag

e and generdiscount rat

% and the pad probable mively.

perty are estf 4.07 g/t A. In addition

Au and 152 gral resourcestry of eight

12, and use h a total len

minor splaymethod sein the defini

nversion to pes was cons

1

MZ) to at was S.A.C

eement st (IMZ for the s plant

43-101 mate on cochas

e of 7.8 ades of oz) Au rate of

p-up is will be

rates a te, and ayback mineral

imated Au and

, there g/t Ag, s were veins,

all drill ngth of

ys and lected, ition of

proven sidered

PERevDat

1.

1.

1.


Totaand resethe m

2 Mine

Evalmeth

The condself-sexcablastwell

3 Mini

The desig

The resusize vein north

Baseweredeviam vecontprod

4 Proc

A tessamprovAmm

1

al Inmaculada120.2 g/t Agrve tonnage mining of the

e Geomecha

uation of thehodologies in

Maximum classificatithe vein;

Stability gr

2D finite e

mean RMRditions. For thsupporting ti

avation for 7ting activitiesas sufficient

ng

main designgn were:

Ore and ho

Dip and th

The produ

Ore dilutio

geomechanlt a conservaand sequen(larger vein

h and south a

ed on geomee developed ation and diluertical intervinuity and suuction of 3,5

cessing and

stwork progrples were ciding data fo

mtec (Ammte

a project resg, correspond

being highee vein, and no

anical Cond

e stability ofncluding;

dimension ion Rock Ma

raph method

lement stres

R obtained fhe hanging ame of 2 day.2 hours. Ths. Accordinglbackfill rate

n elements co

ost rock geo

hickness of th

uction and pro

on.

ical results ative approacing. The suwidth) with

areas of the

echanical rowith sub levution. In the als. Both mufficient heig506 t/d.

d Metallurgy

ram was devcollected witor the preparec) in Perth, A

serves wereding to 0.84 er than the reot due to inc

ditions

rock excava

for excavatiass Rating (R

d to establish

ss-strain anal

from the geoand foot wal

ys, while for these conditioly adequate scapacity.

onsidered in

mechanical

he Angela Ve

oductivity req

indicated poach was takeub level stopi

a stope heigvein with sto

ock conditionvels of 9m vecut and fill aethods will u

ght to allow a

y

veloped by Ah the speciration of the Australia.

estimated aMoz Au andesource tonnlusion of any

ations was de

ons and seRMR) of the

the hydrauli

lysis for the e

omechanicals, the maximthe vein zoneons require support spec

the selection

characteristi

ein;

quirements o

oor rock conen to the minng mining mght of 5 m. Tope heights o

ns and oreboertical interva

areas the accuse cementea number of

Ausenco for tfic objectiveFS. The me

at 7.8 Mt of o 30.14 Moz Anage is due y inferred res

eveloped us

lf-support time hangingwa

ic ratio; and

excavations

l model indmum unsuppes the expecimmediate scifications an

n of mining m

cs;

of each minin

ditions in arning method

method was aThe cut and of 4.5 m.

ody geometrals to limit hcesses to theed backfill. Tsimultaneou

he Angela Ve of verifyingetallurgical te

ore, with graAg. The reasto the dilutio

sources.

ing empirica

me based oll (HW) and

using Phase

icated modeported excavctation is 2.7support in thnd stope size

method and

ng method; a

reas of the Aselected, as

applied in thefill method

ry the sub lehangingwall ee vein will beThe 2 km lous mining se

Vein deposit g the technestwork was

ades of 3.37son for the mon expected

al and determ

on the rock footwall (FW

e 2 software.

erate to poovation is 4 m 7 m of unsupe vein zone

es were defin

ultimately the

and

Angela Veins well as thee central partwas applied

evel stoping exposure, dre developed aong vein hasections to en

and represeical feasibilitcompleted a

2

g/t Au mineral during

ministic

quality W) and

or rock with a

pported s after

ned, as

e mine

. As a e stope t of the in the

zones rill hole at 12.5 s good nsure a

ntative ty and at ALS

PERevDat


Find(SAGthe omicro

The identsum

Tabl

Table

ComId

DomCom

DomCom

DomCom

Goldcalcu

The for realso tailinback

The provprocores

1

ings from theG) milling, more using coon, 96 hours

testwork inctified throughmarized in

e 1.1.

e 1.1 - Bulk Cya

mposite dentity

main mp #1

HS

main mp #2

HS

main mp #3

HS

d and silver ulations and

testwork indecovery of prindicated th

ngs being diskfill in the und

unit operatioen in the goess plant flotested. The

Primary cr

SAG mill g

Ball mill gr

Leaching;

Counter-cu

Pregnant s

Refinery in

Tailings de

Thickened

Fresh and

Reagent p

e testwork inoderately ha

onventional cs leaching an

cluded cyanidh the course

anidation Testw

Test No

Ex96

S25805

S25806

S25807

recoveries oinclude redu

icated that threcious metahat cyanide scharged to derground m

ons used to ld and silver

owsheet that flowsheet in

rushing direc

grinding;

rinding;

urrent decan

solution clari

ncorporating

etoxification,

d tailings filtra

reclaim wat

preparation a

ndicated thatard and modecyanide leacnd 1,500 mg/

dation leache of the prog

work Results

% Au xtraction 6 Hours

AuR

97.5

97.6

97.5

of 95.6% anuctions to acc

he leached sals through acould be dethe tailings

mine.

model the pprocessing could handl

ncorporates t

ct feeding the

nt solution wa

fication and

mercury reto

thickening a

ation and pas

er supply; an

and distributio

t the ore is merately abrasching techniq/L sodium cy

ing of bulk (ram. The go

u Leach Residue

(g/t) Ex96

0.11

0.09

0.15

nd 90.6% recommodate

slurry could ba conventionaetoxified usin storage fac

lant throughpindustry. Thee the variabhe following

e milling circu

ashing;

precious me

ort and smel

and disposal;

ste backfill;

nd

on.

moderately csive. Gold anques with anyanide conce

(20 kg) sampold and silve

% Ag xtraction 6 Hours

AR

92.6

93.9

90.4

espectively wscale-up and

be thickenedal Merrill Crong the INCOcility (TSF),

put and metae overall appility in the mmajor proce

uit via a stoc

etal recovery

ting facilities

;

competent fond silver can n optimum grntration.

ples at the or extractions

g Leach Residue

(g/t)

8.2

8.0

22

were used fod solution los

to allow soliowe processiO SO2/Air pror filtered a

allurgical peproach was tetallurgical p

ess operation

kpile;

by zinc prec

s;

r semi-autogbe recovererind size of

optimum cons in these tes

Consumptio(kg/t)

Lime N

0.64 1

0.59 1

0.67 1

or mineral resses.

id-liquid sepaing plant. Terocess prior nd used for

rformance ato provide a performancens:

cipitation;

3

genous ed from P80 50

ditions sts are

on

NaCN

1.08

1.05

1.56

eserve

aration estwork

to the r paste

re well robust of the

PERevDat

1.

1.


The data

5 Cap

TablstartQ1 2allowfirst consan E

Table

Pro

Pro

Hig

Min

No

Te

Ind

Ow

Co

Gra

6 Ope

The 1.28 quar

Table

Unde

-

1

process desfor similar o

An averag

Design avequipment

Sufficient pAngela Ve

ital Cost

e 1.2 provideing on 1 Jan2014. The cwance for esc

fills, buildinsidered to haEngineering,

e 1.2 - Overall P

ocess Plant

ocess Plant In

gh Voltage Po

ne

on Process Pla

mporary Facil

directs

wners Costs

ontingency

and Total

rating Cost

operating coMt per year

rter of 2011 (

e 1.3 - Unit Ope

Pa

erground mine

Cut and Fill:

sign criteria woperations. T

ge throughpu

vailability of 9t in critical ar

plant design ein as per tes

es a summanuary 2012 ucosts are excalation. The

ngs, road wave an overaProcuremen

Project Capital

Descripti

nfrastructure

wer Supply

ant Infrastructu

ities

ost estimater. The costs w(calendar yea

erating Cost Su

arameter

e

were develophe key criter

t of 3,506 t/d

91.3%, equivreas, and

flexibility forstwork compl

ary of the oveuntil ramp-upxpressed in e estimated corks and pe

all accuracy t and Constr

Costs by Area

on

ure

e was develowere dividedar). The over

ummary (based

ped from theria selected f

d for 365 day

valent to 7,9

r treatment oleted.

erall capital p is completeOctober 201costs includeermanent aof ±15% andruction Mana

a

T

oped on an d into the keyrall operating

d on 3,506 t/d m

Unit

$/t ore milled

e testwork prfor the plant d

ys per year;

998 operating

of all zones, a

costs estimaed and full s11 United Se all mining, ccommodatid assume thagement (EP

Total Cost ($M)

88.9

12.0

13.5

69.6

36.6

11.5

35.1

23.3

24.9

315

annual procy cost centerg costs are s

milled)

rogram and fdesign are:

g hours per

at design thro

ated for the Icale product

States dollarssite preparaton camp. T

he project wiPCM) basis.

cess plant thrs and all coshown in Tab

Value

44.5

from benchm

year, with st

oughput, wit

nmaculada ption commens ($). Theretion, processThe estimatell be develop

hroughput basts are as of ble 1.3.

4

marked

tandby

hin the

project nces in e is no s plant, es are ped on

asis of the 4th

PERevDat

1.


-

-

Proc

Gene

TOTA

7 Econ

Two analythe eagre

The $323tax wyear

The as sh

Table

Casecase

TablInma

Table

Avera

Avera

Avera

Life-o

Life-o

Life-o

1

Pa

Sub Level Sto

Average:

essing

eral and Admi

AL

nomic Analy

economic aysis” indicateeconomic paeement as ou

overall proje3 million befowas $181 mirs with an IRR

sensitivity anhown in Tab

e 1.4 - Overall P

Case

e 1 (base )

e 1.5 belowaculada proje

e 1.5 - IMZ’s Att

age annual go

age annual sil

age annual go

of-mine gold p

of-mine silver

of-mine gold e

arameter

oping:

nistrative

ysis

analysis casees the param

arameters of utlined in Sec

ect base casore tax and llion and $90R of 18%.

nalysis indicale 1.4.

Project Econom

Varia

Capital Co

Operating

Metal PriceFeed Grad

w indicates ect based on

tributable Prod

Item

old production

lver production

old equiv. prod

production

production

equiv. producti

es have beenmeters of ththe project s

ction 4.2.

e analysis re$194 million0 million afte

ated that the

mic Sensitivity

able

ost

Cost

e or de

IMZ’s attribn the terms o

duction and Ec

n

duction2

ion2

Unit

$/t ore milled

$/t ore milled

$/t ore mille

n provided ine overall prospecific to IM

esulted in a n after tax. W

er tax. The o

e project is m

Summary

-10%

Variance

217

224

82

utable produof the joint ve

conomic Param

ed

n this report.oject. The “I

MZ based on

non-discounWith a 5% dis

verall projec

most sensitive

Pre-tax

Va

uction and enture agreem

meters

Units

oun

oun

oun

Value

32.2

39.1

25.1

8.70

72.9

The “overalMZ specific the IMZ – H

ted net presscount appliect pre-tax pay

e to feed gra

NPV5% (M$)

0%

ariance

181

181

181

economic pment.

nces/year

nces/year

nces/year

ounces

ounces

ounces

ll project ecoanalysis” pr

Hochschild te

ent value (Ned the NPV yback period

de and meta

+10%

Varian

144

137

280

parameters f

49,600

1,682,000

78,000

313,000

10,600,000

488,000

5

onomic rovides erms of

NPV) of before

d is 4.3

al price

%

ce

for the

0

0

0

0

0

0

PERevDat

1.

1.


Initia

Direc

Direc

Total

IRR P

Pre-t

Pre-t

Pre-t

1) Directplus esharin

2) Gold prices

3) By-proounce

4) For c$560/

8 Proj

Projeand

The subjecondcomcom

Com

Com

Com

Com

Com

Com

Prod

9 Con

The

1

l capital

ct site costs1

ct site costs1,3

cash operatin

Pre-tax/post-ta

ax /post-tax c

ax/post-tax NP

ax/post-tax NP

t site costs incluestimates of thng which is 8% oequivalents are

s. oduct accountine of gold. comparative pur/oz of gold and $

ect Impleme

ect constructice) and the

following crect to receipditions. Delapletion. At thpleted, with r

mmence place

mmencement

mplete detaile

mmence mec

mplete civil wo

mmence com

duction………

clusions an

following are

Item

ng costs1,3,4

ax

ash flow (non-

PV, 5% discou

PV, 8% discou

ude mining, proce managementof net income).

e estimated usin

ng subtracts the

rposes, if IMZ $9.15/oz of silve

entation Pla

tion is expecreduced pro

itical key dapt of environmays in meetihe time of threcommenda

ement of ord

civil works…

ed engineerin

hanical insta

orks…………

missioning…

………………

nd Recomme

e the key con

-discounted)

unt rate

unt rate

cessing and mint fee, refining c

ng a silver-to-go

e revenue gener

had selected cer.

an

cted to takeoductivity at 4

ates and milemental approing these tahis report baations made

ders for long

….……………

ng……………

allation..……

………………

………………

………………

endations

nclusions of t

$

$ per oun

$ per oun

ne administratiocharges and go

old ratio of 60:1

rated by silver fr

co-product acco

15 months4,800 meters

estones haveovals, financarget dates asic engineefor purchase

lead items…

………………

………………

………………

………………

………………

………………

this report:

Units

$

$ per tonne pr

nce Au (with A

nce Au (with A

$

$

$

on. Total cash oovernment roya

calculated by

rom the total op

ounting, the res

due to climas above sea

e been idening, award owould likely

ering on the e of all long l

…………………

………………

………………

………………

………………

………………

………………

$ millions

rocessed

Ag credit)

Ag credit)

%

$ millions

$ millions

$ millions

operating costs alty (but do not

using the ratio

perating costs to

sulting cash ope

atic conditionlevel (masl).

tified for theof contracts ay result in aprocess plaead items.

………………

………………

………………

…………………

………………

……………….

……………..

91

74

133

262

26 / 21

136 / 95

85 / 57

63 / 40

include direct st include worke

of the base cas

o determine the

erating costs w

ns (seasona

e project. Thand meteoroa delay in ant was esse

……. February

…………...Ma

…....Decembe

….........Marc

……….…Ma

.…Novembe

.….Decembe

6

4

3

2

5

7

0

ite costs ers profit

se metal

cost per

would be

l snow

ey are ological project entially

y 2012

ay 2012

er 2012

ch 2013

ay 2013

er 2013

er 2013

PERevDat


The

1

The Inmacset is roburegion of tmining ass

Mine geomhanging ain the cent

The mine and foot w

The mine with a stoareas of th

Results oftypes cancyanide le

The procemetallurgic

There is stailings filtundergroumine.

Surface wwater bein

following are

The projec

Complete control mo

Closer spaveins is wa

Additional density-grabranches a

Design of and local conditions

Once backthe suppofor overall

Process pthe FS anlatest testw

A more spfor detailedgrinding m

culada deposust and reliathe resourcesumptions.

mechanical ind foot wallstral zones.

design and walls. This inc

design utilizepe height of

he vein with s

f the metallurn be succesaching techn

ess plant flowcal performa

sufficient captration and

und mine, an

water will be ng discharged

e the key rec

ct advance to

detailed mapodels.

aced drilling arranted.

density meade relationsand minor ve

the stope diadjustment

observed in

kfill propertiert effectivenemine stabilit

lant layout and subsequework informa

pecific proced design of t

mills.

sit is extensible. Develop

e is now reco

investigations are classifie

support wascludes imme

es sub level f 5 m and custope heights

rgical testwossfully achienology.

wsheet and unce are well

pacity in the paste backd hence red

utilized to d under cont

commendatio

o detailed en

pping and sa

from a footw

easurementsship, and to eeins.

mensions shts to the d

n the stopes.

es are knowess of the filty.

and equipmeently completation that bec

ess plant sitethe structure

ively drilled apment of theommended t

s indicated ed as poor t

s based on diate suppor

stoping in thut and fill ms of 4.5 m.

ork conclude eved using

unit operationproven in th

tailings storkfill plant wiluce the over

provide the trolled condit

ons of this re

ngineering, p

ampling of le

wall position

are requireestablish app

hould be regesign shoul

n, numericall, as well as

ent sizing optted during Bcame availab

e geotechnices foundation

and geologice orebody, pato validate th

that the rocko fair, with th

the geomecrt in the vein

e central parethod was a

that processindustry sta

ns used to mhe gold and s

rage facility ll deliver cerall TSF volu

raw water rtions to surro

port:

rocurement a

evel developm

to determine

ed to establipropriate den

garded as a fld be expec

l modeling sto assess if

timization waBasic Engineble in the latt

cal investigans, particular

cally well undarticularly wihe resource

k conditions he improved

chanical modzones after

rt of the veinapplied in th

sing the Angndard crush

model the plasilver process

(TSF) for 7emented pasume requirem

requirementsounding area

and construc

ment and co

e if developm

ish whether nsities to be

first step in tcted, depen

should be cof sill or rib pi

as identified eering. This er stages of

tion programrly for heavy

derstood. Thithin the meamodel and

and quality rock quality

del for the hablasting activ

n (larger vein he north and

gela Vein Zohing, grindin

ant throughpsing industry

.8 Mt of tailiste backfill ments for the

s with any eas.

ction.

nstruction of

ment of any p

or not therused in the s

the design pnding upon

ompleted to allars should

as required was based the FS.

m is recommy loads such

7

he data asured to test

in the y areas

anging vities.

width) south

ne ore ng and

put and y.

ngs. A to the

e life of

excess

f grade

parallel

re is a splays,

rocess actual

assess be left

during on the

mended as the

PERevDat


1

Investigatigiven the hprocessing

Further dedischarge to the envi

Complete

ons should ihigh amountg plant.

etailed testwwater qualityironment.

an overall de

nclude the pt of water infl

work and moy to determin

etailed projec

possibility to low to the mi

odeling shone if it meets

ct risk asses

remove the rine and subs

uld be coms the regulat

ssment in det

raw water dasequent poss

pleted on thory requirem

tailed engine

am from the sible use with

he expectedments for disc

eering.

8

design hin the

d mine charge

PERevDat

2


Intr

AuseFeasmininDepa

This throu

This 2.1. Mon

Table

Clint

Ian D

Ang

Tony

Moh

Eachrepo

Any in Re

All ustandUnitedeve

This ident

Table

aver

day

degr

degr

diam

1

oduction

enco was cosibility Study ng is the Anartment of Ay

report consiugh a conven

technical rePersonal visdragon on 15

e 2.1 - Qualified

Name of QuPerso

ton Donkin

Dreyer

el Mondragon

y Sanford

han Srivastava

h QP in this orting in Sect

previous teceferences (S

units in this dard units, sed States Doeloped to an

report usestifies several

e 2.2 - Abbrevia

rage

ree Celsius

ree Fahrenhe

meter

and Term

ontracted byon the Inmagela Vein loyacucho, sou

iders a mine ntional cyani

eport was wrsits to the Pro5 March 201

d Persons and

ualified n

n

a

report takes ion 29.

chnical reporSection 27).

report are bsuch as troy ollars ($) unlaccuracy of

s abbreviatiol important te

ations and Sym

Term

it

s of Refer

y IMZ to asaculada projecated in the uthern Peru

that will prode leaching

ritten by the oject site we1.

Areas of Resp

1, 2, 3, 4, 21.2.2, 21.3

sole respon

rts or literatu

based on thounces for tess otherwis±15%.

ns and acroerms and abb

mbols

rence

ssist in the ect property i

provinces o(the “Proper

duce 1.28 Mprocess plan

independenre conducted

ponsibility

Are

5, 6, 13, 17, 13, 21.5, 21.6,

7,8

15,16

sibility for th

re used in th

he Internatiothe mass of se stated. Th

onyms commbreviations u

production oin Peru. The

of Parinacochrty”).

Mt/y of gold/sint.

nt Qualified Pd by Ian Dre

ea of Respo

8, 19, 21.1.1,22, 23, 24, 25

26.7, 27, 28

8,9,10,11,12, 2

6, 21.1.3, 21.4

20, 26.6

14

eir work as o

he compilatio

nal System precious me

he project op

mon within thused in this r

Abbre

of a Technicgold/silver d

has and Pau

ilver bearing

Persons (QPyer on 20 Ju

onsibility

21.1.2, 21.1.45.2, 25.4, 25.58, 29

25.1, 26.1

4, 25.3, 26.2

6

outlined in th

on of this rep

of Units (Setals. All currperating and

he minerals ieport.

eviation or S

ave

d

°C

°F

dia

cal Report odeposit targeucar de Sara

ore for proc

Ps) shown inuly 2011 and

4, 21.1.5, 21.2, 26.3, 26.4, 2

heir QP Certi

port are refer

I), except inrency valuescapital costs

industry. Tab

Symbol

9

on the eted for a Sara,

cessing

Table d Angel

2.1, 26.5,

ficates

renced

ndustry are in s were

ble 2.2

PERevDat


foot

gram

gram

gram

hect

hour

insid

kilog

kilom

kiloP

kilow

life o

liter

max

meg

mete

mete

mete

mete

metr

metr

metr

micr

mile

Millio

kilom

mini

minu

mole

mole

parts

1

m

ms per liter

ms per metric

tare

r

de diameter

gram

meter

Pascal

watthour

of mine

ximum

gaPascal

er

er per second

ers above sea

er per second

ric tonnes

ric tonnes per

ric tonnes per

ron

es per hour

on tonnes per

meters per ho

mum

ute

e percent

ecular mass (w

s per billion

Term

tonne

a level

squared

day

hour

r year

ur

weight)

Abbreeviation or S

ft

g

g/L

g/t

ha

h

ID

kg

km

kPa

kWh

LOM

L

max

MPa

m

m/s

masl

m/s2

t

t/d

t/h

µm

mph

Mt/y

km/h

min

min

mol %

mol wt

ppb

Symbol

10

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parts

poun

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sem

seco

spec

squa

troy

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weig

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k mass rating

of mine

mi-autogenous

ond

cific gravity

are meter

ounces

onfined compr

me by volume

ght (mass)

ght (mass) per

ght by mass

ght by volume

r

Term

grinding

ressive streng

e

rcent

gth

Abbreeviation or S

ppm

lb

RMR

ROM

SAG

s

SG

m2

oz

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v/v

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% w/w

w/w

w/v

y

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11

PERevDat

3


Rel

PrepinforThe is acare rcostsmad

The inforundehereif add

The issuenumProjeencuexclu

CarlomineoverHe h20 ye

Ausefinaninforacco

1

iance on O

paration of thrmation provauthors beli

ccurate at thereasonable as, economice reasonable

results andrmation beinerstanding thein the authoditional infor

authors of tes associatebers of mineect, the terumbrances tusive of a leg

os Huaman e geomecharall managemholds a masteears of geote

enco has alsncial modelirmation and ordance with

Other Exp

his report is ided in varioeve that the e time of theand based ocs, mineralizae efforts to v

opinions exng current, ahat no informrs reserve thmation beco

this technicaed with the Peral tenures arms of any to which thegal opinion.

of Ausenco nical section

ment and rever’s degree iechnical eng

so relied exteng and anacalculationsPeruvian law

perts

based uponous previous

information report and t

on current unation proceserify the acc

xpressed in accurate, anmation has bhe right, but wmes known

al report areProject. As sand licenses

royalties, be Project is

Peru S.A.C ns of this repview of the mn civil engine

gineering exp

ensively on alysis discuss were provws and Intern

n public ands Technical R

provided anthat the internderstandingsses and theuracy of the

this report nd completebeen withhelwill not be obto the author

e not qualifiesuch, portions, the nature back-in righ

subject are

was relied uport (Section

mine geomeceering specia

perience, with

the accountssed in Sec

vided to Ausnational Fina

d private infoReports listend relied uporpretations ag of mining ae host geolodata relied o

are conditioe as of the ld that wouldbliged, to revrs subseque

ed to providens of Section

and extent ots, paymen

e descriptive

upon as a nons 1.2, 24.1hanical compalizing in geoh 10 years sp

ing team froction 22. Tsenco and bancial Report

ormation proed in Sectionon for preparnd opinions

and processiogic setting. on in this rep

onal upon thdate of thi

d affect the vise this repont to the date

e extensive n 4 dealing wof IMZ’s title ts or other e in nature

on-QP expe, 25.2 and 2ponent of theotechnical enpecific to roc

om Hochschihe taxation believed to ting Standard

ovided by IMn 27 of this ration of this expressed inng techniqueThe authorsort.

he aforemenis report, anconclusions

ort and concle of this repo

comment onwith the typeand interestagreement

and are pr

rt for review 26.2). He pre Feasibilityngineering anck mechanics

ld and IMZ fand depre

be correct ads (IFRS).

12

MZ and report. report

n them es and s have

ntioned nd the made usions

ort.

n legal es and t in the ts and ovided

of the ovided Study. nd has s.

for the eciation and in

PERevDat

4


Pro

The Pauc73°1of C3,90coor

Table

Figur

1

operty Des

Inmaculada car de Sara 4'42"W (Figusco and 530 and 4,800

rdinates in Ta

e 4.1 - Inmacula

re 4.1 - Locatio

scription a

Property is Sara in the Aure 4.1). The30 km south0 masl in thable 4.1.

ada Property U

Easting

677000

702000

677000

702000

n Map for the I

and Locati

located in soAyacucho Dee Property iseast of Limae Puquio-Ca

UTM Coordinate

Inmaculada Pr

ion

outhern Peruepartment sis situated apa, the capitaaylloma Belt

es

operty

u within the ptuated at lati

pproximately al of Peru wit. The Prope

provinces of itude 14°57'2210 km south elevations

erty is locate

Northing

8358000

8358000

8341000

8341000

Parinacocha27"S and lon

uthwest of thes ranging beed within the

13

as and ngitude e town etween e UTM

PERevDat

4.

4.


1 Perm

Fourdurin

2 Prop

Title com(JV) Queof an

On 1trans

On prodoperagredelaymilliocons60%

Belo

1

mits

r drilling permng its tenure

2007: Dec

2008: Evaplatforms;

2008: EstuPermit to d

2010: SegII Proyecto

2011: TercProyecto I

perty Owner

to the Inmpany (also tbetween IMZllopata S.A.Cn option and

12 January 2saction to ac

23 Decembuction at th

ration at Inmeed that sucys under defon of fundingstruction of a by Hochsch

ow are the pr

Hochschild

Hochschildplacement

Hochschildplanning, dat Inmaculby IMZ;

IMZ is no200,000 co

Hochschildprocess coptimal) wout of the

mits have beeas operator

claración Jura

aluación Amb

udio de Impdrill using 67

gunda Modifio Inmaculada

cera Modificanmaculada.

rship and Ag

maculada Prohe operator Z and HochsC. the operatjoint venture

2010, IMZ accquire Ventur

er 2010, IMhe Inmacula

maculada with capacity wfined “force mg required to

a mining opehild and 40%

incipal terms

d paid to IMZ

d made an t at a price of

d will providdevelopmentlada. Any su

o longer requommon shar

d committedcapacity of 3within three ye

control of Ho

en acquired of the Inmac

ada Proyecto

biental Proye

pacto Ambien platforms. E

catoria del Ea. Permit to d

atoria del EsPermit to dri

greements

operty is heas well of t

schild (60% Hting compan

e JV agreeme

cquired the Inra.

MZ signed aada project, h a processwas not optmajeure” cono complete a

eration at Inm by IMZ.

s of the agree

Z $15 million

equity invesf CDN$5.525

de 100% oft and constru

ubsequent ex

uired to comres to Hochs

d to build a 3,000 t/d (uears of closiochschild;

by IMZ or itsculada joint v

o Inmaculada

ecto Inmacu

ntal SemidetExpired Nove

Estudio de Imdrill 79 platfo

studio de Impill using 39 p

eld by Minehe HochschHochschild ay that was eent between

nmaculada p

a definitive whereby H

capacity of timal) by Denditions. Hoca feasibility

maculada. An

ement:

in cash on c

stment in IM5 per share;

f the initial uction of a mxpenditures w

mplete a feachild;

mining opeunless the png of the tra

s predecessoventure proje

a. Permit to d

ulada Catego

tallado Cateember 2009;

mpacto Ambiorms to expire

pacto Ambieplatforms to e

ra Suyamarild/IMZ Palla

and 40% IMZestablished in

Ventura and

property as p

agreement Hochschild cf 3,000 tonneecember 201chschild will pstudy and thny subseque

closing of the

MZ of $20 m

$100 millionmining operatwill be funde

asibility study

eration at theparties agreensaction, su

or Ventura Gect. These inc

drill using 5 p

oría C. Perm

egoría II Pro

iental Semide in August 2

ntal Semidetexpire in July

rca S.A.C. (ancata mine)Z). Suyamarcn August 200d Hochschild

part of the clo

with Hochsccommitted tes per day (13, subject tprovide 100%he planning,ent expenditu

e transaction

million in the

n of fundingtion at the Ad 60% by Ho

y at Inmacu

e Angela Vee that such bject to any

Gold Corp (Veclude:

platforms;

mit to drill us

yecto Inmac

detallado Cat2012; and

tallado Categy 2013.

(Suyamarca)) is a joint vca acquired M09 under thed.

osing of a bu

child to fastto build a (unless the to any unfor

% of the initia developme

ures will be f

;

form of a

g required fAngela Vein dochschild an

ulada, nor to

ein deposit capacity waunforeseen

14

entura)

sing 15

culada.

tegoría

goria II

). This venture Minera

e terms

usiness

t track mining parties reseen al $100 nt and funded

private

for the deposit nd 40%

o issue

with a as not delays

PERevDat

4.


3 Prop

The (Figu

The at USuyathe c

1

If HochschHochschildbased on thave been

Hochschildproductionbased on t

The manareduced fr

IMZ and ownershipthe Pallanedge of thowned 60%

A minimumthe transamain Ange40% by IM

perty Descri

Inmaculada ure 4.2).

claims are inS$224,404 mamarca durinconcessions

hild fails to d must makthe parties’ j

n generated i

d will be thn, Hochschildthe aggregat

agement feerom 10.0% to

Hochschild ps in the Pacncata Mine ahe Inmaculad% by Hochsc

m of 20,000 maction must bela Vein dep

MZ.

iption and T

Property co

n good standmust be paidng 2011, mosare held 100

achieve theke quarterly oint estimateif production

e operator d will chargete operating

e currently co 7.0%;

contributedcapausa propand the Puquda Property.child and 40%

m of drilling be carried oposit. The dr

Tenure

onsists of 33

ding until 30 d (Table 4.2)st of the “pen0% by Suyam

e process capre-paymen

e of IMZ’s 40had started

of the projee the JV cocosts incurre

charged by

d to the Inperty (80% Huiopata prop These cont% by IMZ; an

per year for out for evalurilling progra

3 mining con

June 2012, ). As a resunalties” will nmarca.

apacity withits to IMZ d

0% share of on schedule

ect. Upon company a 7.ed by the JV

Hochschild

nmaculada jHochschild / perty (100% tributions resnd

the first threation of exp

am will be fu

cessions wit

at which timlt of the exp

not be require

in the threeuring the peincome / cas

e;

ommenceme0% manageduring such

for the Pal

oint venture20% IMZ), lIMZ), situatesulted in bot

e years folloploration targunded 60% b

th a total are

e fees and ploration expeed to be paid

-year perioderiod of anysh flows that

ent of commement servic mining oper

lancata Min

e their respocated adjaced on the noth properties

owing the clogets outside by Hochschi

ea of 20 799

penalties estenditures mad (Table 4.2)

15

d, then y delay t would

mercial ces fee ration;

e was

pective cent to orthern s being

sing of of the

ild and

9.46 ha

imated ade by ). All of

PEMN00012-RPRev: 0 Date: 11 January

F

T-0001

y 2012

Figure 4.2 - Inmacullada Property Mining Concessions

16

PERevDat


Table

Con

CAN

INMA20 2

INMA2009

INMA2009

INMA2009

INMA2009

INMA2010

INMA2010

INMA2010

INMA2010

INMA67

INMA77

INMA78

INMA80

INMAN°13

INMAN°14

INMAN°15

INMAN°18

INMAN°3

1

e 4.2 - Inmacula

ncession

NCALLA 2 1

ACULADA 006

1

ACULADA 9-1

0

ACULADA 9-2

0

ACULADA 9-3

0

ACULADA 9-4

0

ACULADA 0-1

0

ACULADA 0-2

0

ACULADA 0-3

0

ACULADA 0-4

0

ACULADA 0

ACULADA 0

ACULADA 0

ACULADA 0

ACULADA 3

1

ACULADA 4

1

ACULADA 5

1

ACULADA 8

1

ACULADA 1

ada Mining Con

Code

0584095

0193006

10170409

10179609

10218909

10219009

10204610

10219910

10219810

10292910

10141704

10039305

10127005

10100806

0010705X01

0010706X01

0010707X01

0010854X01

0010695X01

ncessions

Area (ha)

823.3169

999.9983

467.6250

555.3603

363.5240

165.6140

299.9991

1,000.0000

1,000.0000

900.0000

300.0000

177.3728

250.4765

4.7300

449.9998

449.9998

450.0016

999.9983

1000.0034

Fees Paid 2011 (US$)

$2,469.95

$2,999.99

$ 1,402.88

$ 1,666.08

$ 1,090.57

$ 496.84

NA

NA

NA

NA

$900.00

$532.12

$751.43

$14.19

$1,350.00

$1,350.00

$1,350.00

$2,999.99

$3,000.01

Penalties Paid 2011

(US$)

$16,466.34

$19,999.97

NA

NA

NA

NA

NA

NA

NA

NA

NA

NPPA

NA

NA

NPPA

NPPA

NPPA

NPPA

$20,000.07

Fees & Penalties Estimated 2012 (US$)

$18,936.29

$2,999.99

$1,402.88

$1,666.08

$1,090.57

$496.84

$900.00

$3,000.00

$3,000.00

$2,700.00

$2,700.00

$532.12

$751.43

$14.19

$10,350.00

$10,350.00

$10,350.03

$22,999.96

$23,000.08

Owne

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

17

r

PERevDat

4.

4.


Con

INMAN°30

INMAN°31

INMAN°33

INMAN°34

INMAN°6

INMANº 38

MINAO 20

MINAO 20

PUQ2005

QUE

QUE2008

TAR2007

TAR2007

INMA2011

* NPP

4 Prop

The Corpdemstakipointperfo

5 Peru

Undeconcof la

1

ncession

ACULADA 0

1

ACULADA 1

1

ACULADA 3

1

ACULADA 4

1

ACULADA 1

ACULADA 8

1

ASCUCH007A

1

ASCUCH007B

1

QUIOPATA 5

0

ELLOPATA 0

ELLOPATA 8A

0

ARUNQUI 7B

0

ARUNQUI 7A

0

ACULADA 1-1

0

PA – Payment n

perty Bound

concessionsporation (Mitarcated by ing system uts were convormed.

u’s Mining T

er Peruvian cessions. A Pnd on which

Code

0011032X01

0011172X01

011457XX01

011457YX01

0010698X01

0197205

0035007

0034907

10218505

10004999

10021908

10035207

10035107

10314811

not required as m

daries

s which comtsui) using reference to

using UTM cverted to UT

Title Laws

law, the righPeruvian minh it is located

Area (ha)

1000.0263

400.0001

976.5025

373.9997

999.3311

399.9985

999.9981

824.8503

940.0106

162.1163

564.6105

999.9983

999.9994

500.0000

minimum invest

mprise the Inthe old Pe

o local topogcoordinates. TM coordinat

ht to explorening concessd. The conce

Fees Paid 2011 (US$)

$3,000.08

$1,200.00

$2,929.51

$1,122.00

$2,997.99

$1,200.00

$2,999.99

$2,474.55

$2,820.03

$486.35

$1,693.83

$2,999.99

$3,000.00

$1,500.00

tment reached

maculada Pruvian claimgraphic poinAt that time

tes. No surve

e for and exsion is a propession can b

Penalties Paid 2011

(US$)

$20,000.53

$8,000.00

NPPA

NPPA

$19,986.62

NA

NA

NA

NA

NPPA

NA

NA

NA

NA

roperty werem-staking synts. In 1992, all pre-exiseys of the P

ploit mineralperty right, ine defended

Fees & Penalties Estimated 2012 (US$)

$23,000.61

$9,200.00

$22,459.56

$8,601.99

$22,984.61

$1,200.00

$2,999.99

$2,474.55

$2,82003

$3,728.68

$1,693.83

$2,999.99

$3,000.00

$0.00

e first locatedystem, by w, Peru adop

sting mining Property boun

s is grantedndependent fagainst poss

Owne

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

Suyamarca

d by Mitsui which claimspted a new concession ndaries have

d by way of from the ownsible claim b

18

r

Mining s were

claim-corner

e been

mining nership by third

PERevDat

4.

4.


partimininis no

Accobasicconclaw tcom

Sinc(derepay year

Accoby SmininUS$concholdethe 7hectainvesyear befoconcmust(UITupdaUS$the mthe expirUIT) timesTherthe mchanconc

Peruanot

6 Surf

Suyaperio

7 Envi

The

1

es, transferrng concessioot required fo

ording to thec unit for necession is irreto maintain pany or indiv

e the year echo de vigeconcession

rs then the co

ording to theSupreme Decng concessio100 per hect

cession has er must mak7th through 1are thereaftestment mader for 7th throure 10 Octob

cessions grant sustain a m) per hectareated each ye1,180). If themining conce11th throughration of themust be ma

s the penaltyreafter, if themining concenges made cessions gran

uvian law alsher concess

face Rights

amarca holdod of 25 year

ironmental L

reader is ref

red or sold, on may be thor this purpos

e relevant mewly claimedevocable andthem. There

vidual.

2001, the cencia) of US$rights can b

oncession ex

e General Micree No. 14-on holder mtare in grossnot been p

ke an additio11th year folloer. The minie during the gh to 11th yeber 2008. Pnted after su

minimum levee in gross saear, and its ve mining conession holde 15th year fo

e mining conade plus a my for the 16th

e mining conession will eby the Legisnted before 1

o states thation.

ds a 25-yearrs effective 2

Liabilities

ferred to Sec

leased, morthe subject ofse.

ining law (Led mineral cod indefinite ae is no limit

concession h$3.00 per hebe postponedxpires.

ning Act (the-92-EM (Tex

must sustain s sales withinut into prodnal paymentowing the gring concessprevious yea

ears). The abPursuant to tuch date will el of annual cales within 10value for 20ncession has

er must pay aollowing the cession, a p

minimum leveh through 20t

cession holdxpire. Accorslative Decre10 October 2

t no payment

r lease from 25 November

ction 20 for fu

tgaged and f any transac

ey del Catasncessions is

as long as itsto the numb

holder has hctare by Jund for one ye

e ‘Mining Acxto Único Ord

a minimum n six years ouction withint called Penaranting of theion holder sar was 10 timbove mentionthe Legislatibe ruled by t

commercial p0 years of the09 is Peruvis not been pan additiona

granting of payment of tel of investme

th year followder does notrding to the Sees above m2008.

t is required

the commur 2009.

urther inform

may be inhection or contr

stro Minero s 100 ha to s holder fulfillber of conce

had the oblie 30 of each

ear but if it is

ct’), which sindenado de lalevel of ann

of the grant on that periodalty (Penalide mining conshall be exemes the Penaned applies five Decreesthe followingproduction ofe grant of theian sol (S/.) put into prodl penalty of 1the mining

the same peents (i.e. exp

wing the gran put the minSupreme Rementioned w

on the portio

unity of Hua

ation on env

erited in famract. Govern

Nacional, Lea maximum

ls the obligatessions that

igation to pah year. The as not paid fo

ngle unified a Ley Genernual commeof the concesd, then the m

dad) of US$6ncession andmpted from alty (i.e.US$for mining cos No. 1010 g: the mining f 1 Unidad Ime mining con3,350, whic

duction within10% of the Uconcession

enalty per heploration or dnting of the ming concess

esolution No.will be in for

on of overlap

llhua, on 87

vironment co

milies. In genment author

ey No. 2661m of 1,000 hations prescribmay be held

ay an annuaannual obligaor two conse

text was appral de Miner

ercial producssion. If the mining conc.00 per hectd of US$20.the Penalty60 per hecta

oncessions gand No. 10concession

mpositiva Tribcession (the

ch is approxin that periodUIT per hect

and, to avoectare (10% developmentmining conceion into prod. 054-2008-Erce for the

pping hectare

70 ha of land

nsiderations

19

eral, a rization

5), the a. The bed by d by a

al rent ation to ecutive

proved ría) the ction of mining

cession tare for 00 per

y if the are per granted 54, all holder

butaria UIT is mately d, then are for oid the of the

t) of 10 ession. duction EM the mining

es with

d for a

.

PERevDat

5

5.

5.

5.

5.


Acc

The Prop

1 Acce

The Propas IsHuanAlterCuscto thCuscserve

2 Clim

The with Octo

3 Loca

Labolocalunive

The systecurre

4 Phys

The betwvicingras

1

cessibility

following seperty by P&E

essibility

total travel tperty is accesscahuaca vianacmarca turnatively, acco, through Uhe Property. co to Chalhued by severa

mate

climate in thrain and sno

ober.

al Resource

orers for thel villages haversity educat

Property is em, which rently operate

siography

Property is ween 3,900 a

ity of the Anses (ichu an

, Climate,

ection is souE Mining Con

time from Lissible from L

a the east-born-off and fin

ccess can bUrubamba aThe closest

uanca is aboal daily jet flig

he area is cow between

es and Infras

e project areve been useted geologist

located closreportedly caes several mi

located in thand 4,800 m

ngela Vein tod pajonal).

Local Res

urced and ssults Inc. (20

ima to the InLima by meaound Nazca-Cnally via dirt e gained bynd Chalhuan

t hotel to theout 5.5 to 6 hghts from Lim

haracteristic November a

structure

readily avad for variousts to manage

se to high tean supply sines in the re

he ‘Puna’ remasl. Surfaceo locally very

sources, I

ummarized 010).

nmaculada Pans of the PaCusco highwroad throug

y travelling nca, to Iscahe Property ishours, with ama.

of high altitand April, fo

ailable from ts duties at the the explora

ension powerufficient pow

egion.

egion of Perue topograph

y steep in the

Infrastruct

from the pre

Property is aan-American way, then by h the commuwest on the

huaca and fos in Chalhuaa further hou

tude - ‘Punaollowed by a

the nearby che project. Pation program

r lines of thewer for any

u, with elevay is general

e region. Veg

ture & Phy

evious techn

approximatelhighway to dirt road fromunities of Sae Nazca-Cuollowing the sanca. Travel r travel to Is

a’ climatic regdry season

communitieseru has an a

m.

e Electro Sumining ope

ations on thelly moderategetation is sp

ysiograph

nical report o

ly 15.5 hourNazca, thenm Iscahuacaauricay and Ssco highwaysame graveltime by roacahuaca. Cu

gion in the Abetween Ma

s. People froadequate su

ur del Peru eeration. Hoch

e Property ve in the immparse consis

20

hy

on the

rs. The n as far a to the Sorani. y from l roads d from usco is

Andes, ay and

om the pply of

electric hschild

varying mediate sting of

PERevDat

6

6.

6.

6.


Hist

1 Intro

Expland mapbetwIMZ are d

The Prop

Expl

Table

1990

1994

1995

1998

2007

2 Histo

2.1 2009

In Ja483,Vein

1

tory

oduction

oration on ththe concessping, rock c

ween 1998 anexploration

described in

following seperty by P&E

oration on th

e 6.1 - Historica

Year

0 – 1992 M

4 HM

5 HN(

8 – 2005 H

7-2009 V

orical Miner

9 Mineral Re

anuary 2009 000 containe at the Inmac

he Inmaculadsions were trchip and soilnd 2005. In 2programs suSection 9 of

ection is souE Mining Con

he Inmaculad

al Exploration o

Compa

Mitsui

Hochschild / LAMinerals

Hochschild / CNorth Minera SNorth)

Hochschild

Ventura Gold

ral Resource

esource Est

Ventura anned ounces oculada gold-

da Property ransferred to sampling, g2007, Venturubsequent tof this report.

urced and ssultants Inc.

da Property i

on the Inmacu

any

Nco

AC Hw

Compañía S.A.

Hee

TM

Cth2

e and Reser

imates

nounced an iof gold and silver projec

commencedo Hochschildgeophysical ra Gold starto the acquis

ummarized (2010).

s summarize

lada Property,

Nature and extoncessions tra

Hochschild signwork performed

Hochschild signxtent of work nd of first yea

Through HochsMinera Argento

Regional mConstructioGeologicaMinascuchRock chip QuellopataSalvador (Soil samplGeophysicIP/Resistivkm) at 3 taDDH at Ta(31 holes a440 m)

Core drilling foche Angela Vei5,590m

rve Estimate

nitial indepe16.6 million t in southern

d in 1990 by in 1992. Hosurveys anded it’s earn iition of Vent

from the pre

ed in Table 6

1990-2009

Exp

tent of work noansferred to H

ned a JV agred.

ned a JV agrenot known. Prr.

schild subsidiao S.R.L. perfo

mapping and son of access rl mapping of Tho and San Sasampling at T

a (1,665 samp210 samples)ling (186 sampcal surveys: mvity (29.2 line-argets. ararunqui (11 hat 7,188.40 m

cused on delinn, completed

es

ndent inferrecontained o

n Peru.

Mitsui. The ochschild ped core drillinn process bytura Gold on

evious techn

6.1.

loration

ot known. PropHochschild.

eement with LA

eement with Nroperty reverte

aries Minera Armed the follo

sampling (1:25road from SauTararunqui, Qualvador (1:5,00Tararunqui (29ples), Minascu). ples).

magnetometer km) and Grad

holes at 1,479) and Minascu

neating the mi99 core drill h

ed mineral reounces of si

Property warformed geo

ng on the Pry drilling 15,0n 12 January

nical report o

perty sold and

AC Minerals. N

orth. Nature aed to Hochsch

Ares S.A.C. anwing:

5,000) uricay uellopata, 00)

93 samples), ucho – San

(51.77 line-kmdient IP (21 line

9.29 m), Quelloucho (2 holes

ineral resourcoles for a tota

esource estimilver at the A

21

as sold ological roperty 000 m. y 2010

on the

d

No

and hild at

nd

m), e-

opata at

e of al of

mate of Angela

PERevDat

6.

6.


The averresothrou

2.2 2010

In Fproje

The by FFebrfor amineover

2.3 2010

In S(scodepo

Resu$1,0couldantic137

The Ontadisporeso

The

1

inferred resrage grade ource estimatugh Decemb

0 Mineral Re

February 201ect comprisin

Indicated R1.2 million

Inferred R4.7 million

InmaculadaSS Canada’sruary 2010. approximatelyeralization ofr 300 m.

0 Mineral Re

eptember 20ping study) osit at the Inm

ults of the sc00/oz and $d return a pcipated Scopg/t silver.

independenario Canada osal facility urce estimat

results of the

source ouncof 4.0 g/t gote is based o

ber 31, 2008

esource Est

10, IMZ repng the followi

Resource: 1 tonnes at an

Resource: 512 tonnes at an

mineral ress R. MohanThe mineraly 25,000 m of over 1,500

esource Est

010, IMZ anand an upd

maculada pro

coping study $17/oz respepre-tax non-dping study d

t scoping stu(P&E), with

and fresh wte.

e scoping stu

ces are conold and 139on approximaand was calc

imate

ported an uping resource

54,000 ouncn average gr

2,000 ouncen average gr

source estim Srivastava l resource eof drilling, wm (and whic

imate and P

nnounced thdated, increaoject.

for the Projectively and adiscounted cdiluted mine

udy was oveh Golder Asswater supply

udy are sum

tained withig/t silver. T

ately 15,000culated by M

pdated minees on a 100%

ces gold andrade of 3.9 g

es gold and 2rade of 3.4 g

mate was cla(P.Geo) and

estimate is bwhich have dch is still ope

Preliminary A

he results ofased minera

ect indicateda 3,000 t/d tcash flow of

production

erseen by P sociates Perand FSS C

marized in T

n an estimahis Nationalm of core d

Micon Interna

ral resource% Project bas

4.9 million o/t gold and 1

22.1 million o/t gold and 1

assified in acd the estima

based on thedefined a stren to the nor

Assessmen

f an indepenal resource

d that at basethroughput, af approximatof 8.0 Mt a

& E Mining ru S.A. (Gold

Canada (FSS

Table 6.2.

ated 3.7 mil Instrument rilling and as

ational of Tor

e estimate fsis:

ounces silve22 g/t silver;

ounces silve47 g/t silver.

ccordance wate has an ee results of rike length tortheast) and

t

ndent Prelimestimate for

e case gold aan undergrotely $660 m

at a grade o

Consultantsder) responsS) responsib

llion tonnes 43‐101 com

ssay data obonto Canada

for the Inma

er (contained; and

er (contained.

with CIM guideffective dat84 core drillo the Angelaa vertical ex

minary Assesr the Angela

and silver prund mining illion based

of 3.8 g/t go

s Inc. of Bramsible for the le for the up

22

at an mpliant btained a.

culada

within

within

delines te of 3 l holes a Vein

xtent of

ssment a Vein

rices of project on an ld and

mpton, tailing

pdated

PERevDat


Table

Bas

Bas

Initia

Ave

Ave

Ave

Life-

Life-

Life-

Plan

Meta

Meta

Initia

Tota

Tota

Tota

Tota

Totaprod

Pre-

Cas

NPV

NPV

1) Tcothst

2) Ines

3) Toem

4) To5) B

th6) A

m

1

e 6.2 - Inmacula

e Case Gold p

e Case Silver

al Mine life

rage annual g

rage annual s

rage annual g

-of-mine gold

-of-mine silver

-of-mine gold

nt processing

allurgical reco

allurgical reco

al capital 2

al Cash operat

al Cash operat

al Cash operat

al Cash operat

al Cash operatduct) 5

-Tax IRR

h Flow (non-d

V, 5% discoun

V, 10% discou

his Preliminaryonsidered too shem to be categtudy will be realnitial Capital incscalation factorsotal Cash Opemployee profit sotal Cash Costsy-product accou

he cost per ouncnnual and life-

metallurgical reco

ada Angela Vei

Item

price

Price

gold production

ilver productio

gold Eq. produ

production 6

r production 6

Eq. production

rate (~3,000 t/

overy – gold

overy – silver

ting cost 3,

ting cost 4

ting cost, inc c

ting cost (by-p

ting cost inc c

discounted)

t rate

nt rate

y Assessment speculative geogorized as mineized. cludes $32.9 ms have been ap

erating costs insharing or depres per ounce of gunting subtractsce of gold. of-mine producoveries for gold

in Scoping Stu

n 6

on 6

uction

n

/d)

capital 4

product) 5

capital (by-

is preliminary ologically to havral reserves, an

million in contingplied. Value add

nclude smeltingeciation, depletiogold equivalent as the revenue g

ction figures are and silver.

udy (100% Proj

per o

per o

in nature, in tve the economnd there is no ce

gency allowancded tax has not and refining, on or amortizatiare calculated u

generated by sil

e after 5% min

ect Basis, all in

Units

$ per

$ per

ounce

ounce

Au Eq ounce

o

o

Au Eq. o

tonne

$ m

per tonne

per ounce A

per ounce A

ounce Au (Ag

ounce Au (Ag

$ m

$ m

$ m

that it includesic considerationertainty that the

ce. Costs are bt been included Peruvian Goveion. using a silver-tolver from the op

ning losses, 20

n US Dollars)

ounce

ounce

years

es/year

es/year

es/year

ounces

ounces

ounces

es/year

%

%

millions

of ore

Au Eq.

Au Eq.

credit)

credit)

%

millions

millions

millions

inferred minens applied to the results of the p

based on Q3 2in the cost estim

ernment royaltie

-gold ratio of 60perating costs a

0% mining dilut

1000

17

7.5

117,000

4,000,000

180,000

858,000

29,300,000

1,346,000

1,095,750

88

83

168

$52.08

$31

$517

-$94

$23

4

660

434

286

ral resources them that wouldpreliminary asse

2010 estimates mates. es, but do not

0:1. as a credit to de

ion and the re

23

0

7

5

0

0

0

0

0

0

0

8

3

8

8

1

7

4

1

1

0

4

6

that are d enable essment

and no

include

etermine

spective

PERevDat

6.


Baseupdafirm.

The gold flotatounc

TableUS$1

ResEstCat

Mea

Indic

MeaandIndi

Infer

1) R5to

2) N3) T4) To

105) A6) T7) D8) T

2.4 2011

In FInma

Tablequiv

1

ed on drill reated mineral This new es

resource esratio of 60

tion process ce.

e 6.3 - Angela V,000/oz gold an

source timate tegory

To

asured 1,0

cated 2,7

asured cated

3,8

rred 4,3

Resources are sh1% ownership a

o Hochschild 20umbers are rouhe estimated mo limit the influe00 g/t and silververage dry bulkhe grades wereescriptions of phe contained m

1 Mineral Re

February 20aculada proje

e 6.4 containvalent cut-of

esults receivresource es

stimate was u

timate was r0:1), which a option selec

Vein, Inmaculadnd $17/oz silve

onnes G

Gr(g

080,000

747,000

827,000

388,000

hown on a 100%and is earning a0,000 IMZ shar

unded to reflect ineral resources

ence of individuar grades were c

k densities of 2.5e interpolated usparameters to deetal estimates r

esource Est

11, IMZ repect.

ns the updatff grade.

ved up to a cstimate was used as the

reported at aapproximatescted for Inma

da Project – Mer)

old rade g/t)

SilverGrade(g/t)

5.1 10

4.0 13

4.3 12

4.6 20

% project basis.a 70% interest bres. the precision ofs are not mineraal high-grade sa

capped at 1,50051 tonnes per csing “Ordinary Ketermine “Measremain subject t

imate

ported an up

ed resource

cut-off date calculated bbasis for the

a cut-off grads the cut-ofaculada, usin

ineral Resourc

r e

Gold

07 178,000

37 354,000

29 532,000

00 645,000

. IMZ controls a by completing a

f a resource estal reserves andamples, grade c g/t.

cubic meter (t/m3

Kriging” estimatiured”, “Indicateto factors such a

pdated, incre

estimate (on

of 15 May 2y FSS Cana

e scoping stu

de of 3 g/t goff grade for ng a base-ca

ce Estimates (a

100% Projec

Silver

3,717,000

12,128,000

15,845,000

28,283,000

70% interest (Hfeasibility study

imate. do not have de

cutting was used

3”) for all mineraon technique. d” and “Inferredas mining dilutio

eased mine

n a 100% pro

2010 (drill hoada, an indepdy.

old equivalenthe underg

ase gold pric

as of 9 Septem

ct Contained

Gold Equivale

0 240,0

0 556,0

0 796,0

0 1,116,0

Hochschild Miniy before Septem

emonstrated ecod. Gold assay g

alized rocks.

d” resources areon and process

eral resource

oject basis) u

ole INMA 13pendent con

nt (using a sround minin

ce of US$1,0

ber 2010 at

Ounces

ent Silv

Equiva

000 14,39

000 33,39

000 47,78

000 66,95

ng 30%) with a mber 2013 and is

onomic viability.rades were cap

e provided belowrecovery losses

e estimate

using a 3.0 g

24

39), an sulting

ilver to ng and 000 per

ver alent

5,000

2,000

8,000

9,000

current ssuing

. pped at

w. s.

for the

g/t gold

PERevDat


Table

ResEst

Cat

Mea

Indic

MeaandIndi

Infer

1) R2) M3) A4) G

835) T

Ta6) T7) N8) T

esblfo

1

e 6.4 - Inmacula

source timate

tegory

CuOf

(g/gol

Equ

asured

4.2

3.0

1.6

cated

4.2

3.0

1.6

asured cated

4.2

3.0

1.6

rred

4.2

3.0

1.6

Resources are sMetal prices used

n overall averagGold equivalent g

3% for silver anhe resources aable above. he estimated mumbers have behe mineral resostimate metal glock size of 10m

or silver.

ada Project, An

t-ff

/t ld iv)

Tonnes

2 698,000

0 941,000

6 1,094,00

2 2,951,00

0 3,806,00

6 4,518,00

2 3,649,00

0 4,747,00

6 5,612,00

2 1,998,00

0 2,648,00

6 3,553,00

shown on a 100d are US$15/ozge bulk density grade is calculad metal prices aare reported a

ineral resourceseen rounded in ources were estrades for the m

m by 5m by 10m

ngela Vein Dep

s Gold

Grade (g/t)

0 6.0

0 5.1

00 4.7

00 6.1

00 5.2

00 4.7

00 6.1

00 5.2

00 4.7

00 7.4

00 6.1

00 5.0

0% project basz for silver and Uof 2.51 tonnes

ated at a silver:as stated in Not

at a 3 g/t gold e

s are not mineraall categories to

timated by Hocmain vein body am in size was us

posit - Mineral R

Silver Grade (g/t) Go

153 135

136 155

125 164

226 578

198 640

177 676

212 713

186 795

167 840

295 473

247 521

199 568

sis. IMZ owns aUS$900/oz for gper cubic metergold ratio of 60

te 2. equivalent cut

al reserves ando reflect the prehschild using thand inverse distsed and outlier h

Resource Estim

100% Pro

old Silv

,000 3,420

,000 4,110

,000 4,410

,000 21,450

,000 24,210

,000 25,700

,000 24,880

,000 28,320

,000 30,110

,000 18,950

,000 21,030

,000 22,770

a 40% interest.gold. r has been used

0:1, using metall

t-off grade. Thi

do not have deecision of the eshe ordinary krigtance to the powhigh grades wer

mate – 24 Febr

oject Contain

ver Go

Equiv

,000 192,00

,000 223,50

,000 237,50

0,000 935,50

0,000 1,043,

0,000 1,104,

0,000 1,127,

0,000 1,267,

0,000 1,341,

0,000 788,83

0,000 871,50

0,000 947,50

.

d for the tonnaglurgical recover

is case is show

emonstrated ecostimates. ing capability ower of three forre top-cut to 30

ruary 2011

ned Ounces

old valent

SilEquiv

00 11,52

00 13,41

00 14,25

00 56,13

,500 62,61

,333 6,260

,667 67,66

,000 76,02

,833 80,51

33 47,33

00 52,29

00 56,85

e estimation. ries of 88% for g

wn in bold tex

onomic viability.

f MineSight sofr the peripheral

g/t for gold and

25

lver valent

20,000

10,000

50,000

30,000

10,000

0,000

60,000

20,000

0,000

30,000

90,000

50,000

gold and

xt in the

.

ftware to veins. A

d 860 g/t

PERevDat

7

7.


Geo

The Cons

1 Reg

The of CTertiBelt as ePalladepodepo

Figur

1

ological Se

information sultants Inc.

ional Geolo

Inmaculada Cretaceous a

ary intrusiveand are ass

epithermal Aancata, Aresosits and Higosits.

re 7.1 - Simplifi

etting and

in this Sectcompleted in

gy

Property is and Tertiarye (Figure 7.1sociated withAg-Au miners and Explorgh Sulfidatio

ied Regional G

d Mineraliz

ion was soun 2010.

located in thy volcanics a). Gold depo

h volcanics aralized quarrador deposn (HS) Shila

Geology of Peru

zation

urced from a

he Western Cand to a leosits are locaand intrusionrtz vein sysits, Intermed

a, Paula, Sel

u

a previous te

Cordillera of esser extent ated within t

ns. Ore zonetems includ

diate Sulfidatlene, Suycku

echnical repo

southern Pesedimentar

the Cenozoices are hosteding the Lowtion (IS) Arcutambo, Chi

ort by P&E

eru, which cory sequencec Puquio-Cad in volcanicw Sulfidationcata and Capmo and Po

26

Mining

onsists es with aylloma c rocks n (LS)

aylloma oracota

PERevDat

7.


1.1 Prop

The FormgraincontbeddvicinMesoTaca

The (Figuby a occufounto reempand

At Mlaminlacussedimorigi

The part tuffs

The tuff ubounGroumore

1

perty Geolog

oldest rocksmation of proned sandstoinental red bded siltstoneity of the Mozoic rocks aza Group, w

known mineure 7.2). Thethick seque

ur intercalated within the

epresent thelaced within at Tararunqu

Minascucho anated sandsstrine enviroments attainn also occur

Tacaza Forof the Prope, with the tota

Miocene Anup to 150 to ndary and isup mainly coe than 400 m

gy

s within theobable Mid Cones and cbeds of the Ces, sandstoninascucho aare unconfo

which reach a

eral occurrene Tacaza seqnce of andes

ed within theMesozoic ba

e feeders to Tacaza Gro

ui.

and San Sastones, tuffaconment, withn a thickness

in the south

rmation is overty. The Alpal thickness

iso Formatio200 m in thi

s overlain byonsists of anm and occurs

Property aCretaceous acalcareous Cretaceous Mes and cong

and San Salvormably ovea thickness o

nces on the quence conssitic flows, b

e andesites. asement rock

the more voup andesite

lvador, the uceous sandsin a grabens of approximwest corner

verlain by thpabamba Foof the forma

on overlies thckness. They the Pleistondesitic lavas at the highe

re Mesozoicge. The Sorasandstones

Mara Formatglomerates. vador targetrlain by volc

of 600 to 800

Property arists of a thinreccias and Small stock

ks at Minascvoluminous fes, outcrop i

uppermost pstones and c-like setting mately 40 mof the Quello

e Miocene Aormation contion approxim

he Alpabambe Aniso Formocene to Plios, lahars andest elevations

c clastic maaya Formatio. Overlying tion. The MaBoth Mesoz

ts on the Prcanic rocks 0 m.

re hosted by, basal unit otuffs. Some

ks and dykesucho and Saflows and brn the southw

portions of thconglomerat(the Minasc

m. Similar typopata area.

Alpabamba nsists of thin mately 800 m

ba Formationmation outcroocene agedd breccias ws within the P

arine sedimeon consists o

the Sorayara Formationzoic formatioroperty. At thof the Mid O

y the Tacazof rhyodacitelocal epiclas

s of andesitan Salvador. reccias. Smawestern port

he Tacaza ates which wecucho Grabepes of sedim

Formation insequences

m.

n and consisops to the no Barroso Gr

with an aggrProperty.

ents of the Sof fine- to meya Formation consists ofons outcrop hese localitieOligocene (3

a Group vole lapilli tuff, ostic sedimenic compositioThese are th

all rhyolite dtion of Minas

are represenere depositeen). The lacments of lac

n the southeof rhyodacit

ts mainly of orth of the Prroup. The Begate thickn

27

Soraya edium-

on are f thick-in the

es, the 30 Ma)

lcanics verlain ts also on are hought domes, scucho

ted by ed in a ustrine ustrine

eastern te lithic

crystal roperty

Barroso ness of


F

T-0001

y 2012

Figure 7.2 - Inmacullada Property Geoloogy Map

28

PERevDat

7.

7.

7.


2 Geo

The and porp

Up tobrec

Norteight(Figuloggappebrec

Bothtrendbeen

FourOrgaveinsstee

2.1 Geo

The Six lAntaapprbetwcrustare occu

2.2 Geo

The sulfidHual

1

logy of the Q

Quellopata abreccias of

phyritic. The b

o four lava flcias that con

hwest trendit veins knowure 7.3). Relaing and surfear to have bcia which ma

h northeast ding, south dn observed in

r new quartzana, Marina,s. The veinsply to the so

logy of the A

Anta-Patari low sulfidatio

a Norte, Meroximately 30

ween 0.3 to tiform, stockcommon, ca

urs usually as

logy of the

Cascara-Hudation Ag-Aullhua vein ha

Quellopata

area, which the Tacaza

breccias app

ows have bensist of andes

ng, southeaswn as Angeative displacface mappinbeen active akes up a po

trending andipping faultsn surface ma

z veins wer Verónica a

s trend to thutheast

Anta Patari

veins are loon Ag-Au epenor and An00 m in lengt

6.0 m in wkwork and saarbonate vessociated wit

Cascara Hu

uallhua area u epithermal

as been map

Veins

hosts the Ana Formation. pear to be au

een delineatesite clasts w

st dipping faula, Roxana,

cements of mng, suggest at various tim

ortion of the m

d east-wests appear to dapping, the a

e identified nd Rebeca e northeast-

Veins

ocated 8 km pithermal veinta Sur. Thth. Individua

width. The vaccharoidal qins are minth iron and m

uallhua Vein

is located tol veins haveped for a str

ngela Vein, The andes

utochthonous

ed at Quellopithin an ande

ults are the oMartha, Te

marker horizothat these smes, as evidmineralizatio

t trending sdisplace the

apparent disp

in 2009 to veins, locate-east with az

to the southins are recoe vein systl veins trend

veins consistquartz. Replor. Ilmenite-

manganese o

s

o the southwe been identike length of

is underlain ites are gre

s.

pata and are esitic ground

oldest structuresa, Lourde

ons in cross-structures adenced by reon (along with

tructures ocearlier vein

placement is

the southeaed 650 m to zimuths rang

hwest of the gnized: Norttem strikes d predominant mainly of acement tex-smectite ocoxides in man

west of Anta-tified: Huallhapproximate

by intercalatenish to pur

intercalatedmass.

ures at Quelles, Shakira, sections conre normal faepeated brech vein and st

ccur at Questructures. Wsinistral.

ast of Quellothe southea

ging from 05

Quellopata th Patari, Sonortheast t

ntly to the noa vein / bre

xtures of carccurs in patcny places.

-Patari (Figuhua, Chaguaely 600 m.

ted andesiticrplish in colo

d with volcani

opata and hoJuliana and

nstructed fromaults. Thesecciation of thtockwork typ

ellopata. EasWhere offsets

opata, nameast of Quello50 to 070° a

veins (Figurouth Patari, o easterly aortheast andeccia of collrbonates by ches. Cubic

ure 7.2). Threaya and Ismo

29

c lavas or and

iclastic

ost the d Lucy m core

e faults he fault es).

st-west s have

ely the opata’s and dip

re 7.2). Patari, and is range oform-quartz pyrite

ee low o. The

PERevDat


Figur

1

re 7.3 - Geologyy of the Quelloopata Veins

30

PERevDat

7.


3 Mine

Targepisomajolowe

Detaandethe vof thhigh 10,0gradveinipseubelowstop

Norteight

The vein alongdrillinpote1180

The and

Two evenwith enve

The conscontaand

The and boilinthe varge

1

eralization o

get vein struodes of mineority of vein ser Ag:Au ratio

ailed mappinesite / andesveins were phe area whe

gold values 00N of the loe material ding can be sudomorphs ow the currenped there.

hwest trendit known vein

Angela Veinstrikes nort

g a strike leng as far to ntially econ00N, a strike

vein varies ihas been tes

generationsnt and a late

sphalerite, elope (0.2 to

second minsists of a whains small amarcasite.

Angela Veinillite. Pseudong, are quitevein, occur

entite, pyrargy

of the Angel

ctures are heralization. Asystems tendos.

ng showed tite breccia oredominantlyre they trend(from 1 to o

ocal grid. Thidoes not reaeen. The veor colloform nt topograph

ng, southeasns: Angela, R

n outcrops in theasterly (0ngth of 700 the northeasomical quanlength of so

in thickness sted over a v

s of mineralizer gold-silvergalena, pyrit1.0% Pb + Z

neralizing evhite chalcedomounts (gen

n is composeomorphic, qu common in as disseminyrite, chalcop

a Vein

hosted in TeAverage vein d to be silve

hat the domof the Oligocey northeast-td more westover 10 g/t Ais exposure o

ach surface ining at surfabanding. Thic surface ex

st dipping fauRoxana, Mart

the central 50º), dips tom (from linest as line 12ntities of prme 2,000 m

from 0.5 m tvertical exten

zation have r event. Thete and argeZn) which su

vent at the Aony vein withnerally < 1%)

ed of a ganguuartz-after-cathe vein. Me

nations and pyrite, sphale

ertiary-age vthicknesses

er rich, althou

minant rock ene Tacaza trending, withterly. Rock c

Au) are preseof higher graover much oace has opahe likely expxcept in the

ults are the otha, Teresa,

portion of theo the southee 9600N to 12000N (Figurrecious meta.

to as much ant of up to 30

been observe early minentite (minor)rrounds, and

Angela Veinh associated) of electrum

ue of white calcite textureetallic minera

colloform berite and ele

volcanics ans range betwugh local var

type which Formation. T

h the exceptichip samplinent in the Anade veining oof the vein’slescent quar

planation is valley, and

oldest structuLourdes, Sh

e Quellopataeast (45º to 10300N). There 7.4). The als so far o

as 16.0 m, a00 m.

ved in the Aralization co). These veid overlaps, th

is the mosd breccia andm, argentite,

chalcedony, qs, and collof

als, which rarbanding, andectrum.

d are assocween 0.8-4.0 riations do o

hosts the QThe mappingion of the so

ng has showgela Vein, in

occurs in the s strike lengtrtz with only that the boithat preciou

ures at Quellhakira, Julian

a vein system90º) and oue vein has bportion of thoccurs betw

averaging ap

Angela Vein, onsists of whnlets form ahe Angela Ve

st important d stockworkspyrargyrite, c

quartz, calcitform bandingrely constitutd consist of

ciated with sm in width a

occur with zo

Quellopata veg also showe

outhwestern pwn that consin the vicinity

valley. The th although rare bladed ling level was metal dep

opata and hoa and Lucy.

m (Figure 7.3utcrops on sbeen interseche vein that cween 10000N

pproximately

an early leahite quartz va broad, lowein mineraliz

economicalls. The chalcchalcopyrite,

te (minor), smg, both indicate more than

pyrite, mar

31

several and the ones of

eins is ed that portion stently of line better-quartz calcite as just osition

ost the

3). The surface cted in carries N and

6.0 m,

ad-zinc veinlets w-grade

ation.

y, and cedony , pyrite

mectite ative of n 1% of rcasite,


Figure 7.4 -

T-0001

y 2012

Longitudinal Sectioon with Grade Contoours for the Angela Vein

32

PERevDat


The conssigniFigulater

Figur

1

andesitic wsisting of smificant quantre 7.5 show

rally into brec

re 7.5 - Cross S

wall rock surmectite, chlor

tities of basws a typical cccia or stockw

Section 10200N

rrounding thrite and dissse metals, across sectioworks.

N of the Angela

e Angela Vseminated pyare commonn through th

a Vein (looking

ein is altereyrite. Quartzn in the wahe Angela V

north east)

ed to a propz stockworksall rock adjaVein wherein

pylitic assems, some contacent to the

the vein ch

33

mblage taining

e vein. hanges

PERevDat

8

8.

8.


Dep

The by P

The gold

In teknowwith typesincluMina

The Pant

1 Epit

Epithshallof mboth depomine

Mucto threlea

Histohowemeta

2 Epit

EpithmineThe 8.1 aoccuelem

LS elow hydrbe sfromcircu

1

posit Type

information P&E Mining C

Inmaculada deposits.

erms of metawn as the PuAg-Au mines on the Pro

uding the Aascucho, Cen

following seteleyev (1996

hermal Au-A

hermal Au-Alow crustal leagmatism anliquid- and v

osits. The deralized fluids

h of the ganhe boiling oase, and so m

orically, epithever, many als.

hermal Dep

hermal depoeralogy, depodeposits are

and Table 8.urrences, texments.

epithermal desulfidation v

rothermal minsubdivided fu magmatic s

ulating geothe

es

in this SectioConsultants I

deposits ca

allogenesis, uquio-Cayllomralization disoperty includngela Vein, ntral and San

ections are 6), Corbett (2

Ag Deposit

Ag deposits fevels (< 1 kmnd volcanismvapor-domindeposits cos which cont

ngue mineralof dominantlmay develop

hermal depoof the more

osit Sub-Ty

osits are prosited by thee commonly 1). Each sub

xtures, and

eposits are veins are wneral depositurther into twsource rocksermal fluid s

on was sournc. complete

an be broadly

the Propertyma Belt. Thisstributed as vde LS type

IS type ann Salvador a

summarized2002, 2007)

Classificatio

form in nearm) or low temm, but form aated geother

ontain preciotain a magma

ogy comprisy meteoric

p the characte

sits have bee economica

ypes

rimarily distie interaction o

considered b-type is denin some ca

distinguishedwell banded tion. LS depowo groups:

s (arc low suources (rift lo

rced from theed in 2010.

y classified a

y lies in the s belt hosts veins, mantowhich includ

nd HS typeand dissemin

d from the and Taylor (

on Systems

r-surface envmperatures. Talso in shallormal systemsous metals atic compone

sing quartz, afluids upon

eristic bande

een exploitedally significa

nguished usof host rocksto comprise

noted by chaases, charac

d from HS pand each

osits developthose whichlfidation) andow sulfidatio

e previous te

as low to hig

Cenozoic va number of

os and dissemdes the Au-Ae which incl

ated minera

following re(2007).

s

vironments, They are comw marine ses are commo

deposited ent, with oxid

adularia, and periodic, s

ed fissure ve

d for a wide vant deposits

sing criteria s and ground

one of two aracteristic acteristic suite

primarily by band repre

p from dilute h display mid others withn).

echnical repo

gh sulfidation

olcanic belt f important eminated brecAg quartz veudes mineralization at Ta

ports on ep

from hydrothmmonly assoettings. Hot-sonly associatby the mix

dizing ground

d carbonate structurally-coin ores.

variety of meare mined

of varying dwaters with sub-types: Llteration mines of assoc

their sulfide sents a sepnear neutra

neralogies dh mineralogie

ort on the pr

n epithermal

of Southernepithermal deccias. Deposeins at Quealized breccararunqui.

pithermal sy

hermal systeciated with c

spring deposted with epithxing of upwd water.

forms in resontrolled pre

etals and mifor their pr

gangue andifferent ore

LS and HS (neral assembiated geoch

mineralogy.parate episol pH fluids an

derived domes dominate

34

roperty

silver-

n Peru, eposits sit sub-llopata cias at

stems:

ems at centers its and hermal welling

sponse essure

nerals, recious

nd ore fluids. (Figure blages, emical

Many ode of nd can inantly d from

PERevDat


Figur

From

Stylerocksfollowcarbepithveins

IS suthose

HS sof bawith depobrec

Taylovolca

1

re 8.1 - LS and

Corbett (2007)

es of LS Au-s and influewing subsetonate-base

hermal Au-As.

ub-types aree of IS sub-ty

systems varyarren acid althe host roc

osition. Ore cias and cha

or (2007) suanic and plut

HS Epithermal

-Ag are distience precious of LS havmetal Au; p

Ag. Polymeta

e consideredype, base m

y with depth teration. HScks, producinsystems dis

anges in wall

bdivides bastonic rocks a

l Deposit Mode

nguished acus metal grave been distpolymetallic allic Ag-Au d

to be a subetal sulfides

and permea systems deng charactersplay permel rock alterat

sed on LS anand those tha

el

ccording to made, Ag:Au tinguished bAg-Au; epith

deposits dom

bset of LS tymay compri

ability controlevelop due toristic zoned eability contrion and ore m

nd HS which at are hosted

mineralogy aratio, metally Corbett (2hermal quarminate in the

ypes. In somse a significa

l, and are diso the reactioalteration anrols governemineralogy w

are further sd in sediment

and relation turgy and Au

2007): quartzrtz Au-Ag; ce Americas

me epithermaant ore const

stinguished fn of hot acid

nd later sulfided by litholowith depth of

subdivided intary and mixe

to intrusion su distributionz-sulfide Au

chalcedony-gas fissure A

al deposits, ntituent.

from severaldic magmaticde and Au±Cogy, structurformation.

nto those hosed host rock

35

source n. The ± Cu;

ginguro Ag-rich

notably

styles c fluids Cu±Ag re and

sted by s.

PERevDat


The sulfidtetrathe A

Table

Met

Hos

TectSett

Formof AMine

AlteZon

Vein

HydFlui

Exa

Comp

1

polymetallicdes: pyrite >

ahedrite, argeAndean equiv

e 8.1 - Characte

al Budget

st Lithology

tonic ting

m and Style Alteration / eralization

eration ning

n Textures

drothermal ds

mples

piled from Hede

c Ag-Au vei> sphalerite >entite) and qvalent of the

eristics of Epith

Low Su

Au - Ag, oftpoor

bimodal basequences

rift (extensi

vein arraysveins domindisseminatereplacemenstockwork ooverlying sibonanza zocommon.

ore with quadularia (arsilicificationpropylitic (qchlorite-calzones; veinare commo

chalcedonycommon; lacolloform-cbreccias; b(evidence f

low salinitypH, high ga(CO2, H2S)meteoric.

McLaughlinand Midas,Peñón, ChiJapan; Pall

nquist et al. (20

in systems > galena > cuartz, carbon SW Pacific

hermal Deposi

ulfidation

ten sulfide-

salt-rhyolite .

onal)

; open space nant; ed and nt ore minor; ore common; inter commonones

artz-illite-rgillic); barren n and quartz-cite ± epidote)

n selvedges only narrow.

y and opal aminated crustiform; laded calcite for boiling).

, near neutral as content ; mainly

n, CA; Sleeper NV; El ile; Hishikari, lancata, Peru.

000) and Heden

of South Achalcopyrite nate and barcarbonate-b

it Sub-Types

InteSu

Ag - Au ± sulfide-rich

andesite-dcentred dis

arc (subdu

;

vein arraysveins domdisseminareplacemestockwork productivekm-long, uvertical ex

)

ore with se(argillic-sebase metaCu) zone cspatially asHS and Cudeposits.

chalcedonuncommoncolloform-cmassive cobreccias; lrich, quartzrhodochroespecially base meta

moderate neutral pH

r

Arcata PerMexico; CoRosia Mon

quist and White

America typicwith electru

rite gangue. ase metal go

ermediate ulfidation

Pb - Zn; typicah

dacite; intrusiostrict.

uction)

s; open spaceminant;

ted and ent ore minor;

ore common;e veins may beup to 800 m in xtent.

ericite-illite ericitic); deep al-rich (Pb-Zn common; mayssociated withu porphyry

ny and opal n; laminated crustiform andommon; ocal carbonatz-poor veins; site common, with elevated

als.

salinities; neaH.

ru; Fresnillo omstock NV; ntana Romani

e (2005)

cally occur um, Ag sulphThese systeold epitherma

Hi

ally Cu - Ausulfide-

on andesitcentred

arc

e

; e

veins sdominaand repcommominor.

± y be h

ore in squartz)alunite-argillic)lithocapzones

d

te-

chalceduncomcolloforuncomrhodoc

ar low to hacidic; compo

a.

PierinaCO.

with the folhosalts (tennems are consal systems.

gh Sulfidati

u - Ag; locally -rich

te-dacite; intrud district.

subordinate, loant; disseminaplacement oreon; stockwork

silicic core (vu) flanked by qu-kaolinite (adv); overlying bap common; Cu(enargite) com

dony and opamon; laminaterm-crustiform mon; breccia

chrosite uncom

high salinitiesstrong magmnent?

a Peru; Summ

36

llowing nantite-sidered

on

usion

ocally ated e ore

uggy uartz-vanced arren u-rich mmon.

l ed veins veins;

mmon.

; atic

itville

PERevDat

9

9.

9.


Exp

The 2008Expldrillin

In 20Quesurvefromsoutnorth‘blind

1 2007

Vent

2 2008

Vent

1

ploration

following inf8 is taken foration and ng from 2007

007, Venturallopata veineying and ro the Angela hwestern paheast where d’ mineraliza

7 Ventura Ex

tura, through

The initialrehabilitati

The camp

Detailed to

Rock chip

Core drillin

8 Ventura Ex

tura, through

Detailed (approxima

Detailed g

Detailed g

Rock chip

Soil sampl

46 Pima sa

Magnetic s

IP / resistiv

Core drillin

Core drillin

Core drillin

formation onfrom the Hdrilling prog

7 onwards is

a acquired as. The initiock chip samVein at Que

art of the vethe vein disa

ation in the A

xploration P

h its Peruvian

l work in Inion of the acc

construction

opographic s

sampling at

ng at Quellop

xploration P

h its Peruvian

topographicately 2 km2);

eological ma

eological ma

sampling at

ling at Minas

amples were

surveying at

vity surveyin

ng at Quellop

ng at Minasc

ng at San Sa

n the exploraennessey a

grams prior t described in

an option to eial work compling. Encollopata, expoein. Venturaappeared unngela Vein.

Program

n subsidiary,

nmaculada pcess road to

n at Quellopa

surveys at Qu

: Quellopata

pata (15 hole

Program

n subsidiary,

c surveys ;

apping of Min

apping of Sa

Minascucho

scucho (132

e taken at Mi

Minascucho

g at Minascu

pata (39 hole

cucho (7 hole

alvador (3 ho

ation programand Pressacto 2007 are n detail in Se

explore the onsisted of ouraging goosed in outcr then follow

nder the ridge

performed t

project betwcamp and to

ata;

uellopata (ap

(360 sample

es totaling 2,9

performed t

of the M

nascucho (1:

n Salvador (

o (50 sample

samples);

nascucho an

o (9.1 line-km

ucho (9.1 line

es totaling 10

es totaling 1,4

oles totaling 4

m on the Inmcco (2009) a

described inection 10 of t

Property anddetailed mald and silverop, and in th

wed the mine. The drillin

he following

ween April ao the Quellop

pproximately

es) and regio

901 m).

he following

inascucho

:2,500 scale,

1:1,000, app

s) and San S

nd San Salva

m) and San S

e-km) and Sa

0,252 m);

460 m); and

450 m).

maculada Prand updatedn Section 5 his Report.

d began theapping, in-hr assay resuhe initial drill eralization ag program id

exploration w

nd Septembpata and Min

6 km2);

onally (133 s

exploration w

and San

, approximat

proximately 1

Salvador (10

adors;

Salvador (4.2

an Salvador

roperty from d below to of this Repo

e exploration house topogults were reholes drilled

along strike dentified sign

work:

ber 2007 wanascucho tar

amples); and

work:

Salvador t

ely 1 km2);

km2);

samples);

line-km);

(4.2 line-km

37

2007-2010.

ort and

of the graphic eceived d in the

to the nificant

as the rgets;

d

targets

);

PERevDat

9.


Ventfor e

3 2009

The targezoneassocorrevolca

The Antaoutc

The outcfromCasc

Mapnew veins11 rogold

Tablof ea

Table

P

CAHU

1

tura drilled aearning its 51

9 Ventura Ex

2009 progrets identifiede, the Cascaociated with elate with danic sequenc

program at a Patari (Patrops and tren

Huallhua vropping strik accessible cara-Huallhu

ping and samquartz veins

s are locatedock chip samand silver.

e 9.1 gives tach vein on t

e 9.1 - Rock Ch

Zone

ANTA-PATARI

ASCARA-UALLHUA

a total of 15,% equity pos

xploration P

ram explored to the south

ara-Huallhua quartz veinsetailed geolces.

Anta Patari ari, Anta Nonches, totalin

ein in the Cke length of workings on

ua area.

mpling of thes were identd approximamples were t

the average the three pro

ip Results for

Vein

Patari Norte

Patari

Anta Norte

Menor

Anta Sur

Huallhua

Isno

Chaguada

059.2 m dursition in the

Program

d new targeh and south-e

zone and ths and veinleogical mapp

consisted oorte, Anta Sung 286 samp

Cascara-Huaapproximate

n the Huallhu

e Quellopata ified in this ately 650 m ttaken from th

gold and silvspects.

the Anta Patar

Strike / Dip

300/82NE

310/50-65NE

330/75NE

340/63E

310/85NE

270/81N

320/75S

330-315/70-82NE

ring 2007-08Inmaculada

ets on the Ieast of Quellhe Quellopatts hosted inping confirm

of detailed gur and Minoples.

allhua area ely 600 m. Sua vein and

Southeast parea: Organao the southehe new veins

ver grades fo

ri, Cascara-Hua

Average

Width (m)

0.1-0.5

E 0.5-6

0.3-4

1-2.5

0.5-3.5

2.1

13

-1.5

8, thus compproperty.

nmaculada opata and thta Southeast volcanic se

ming that the

eological mar) veins and

has been gSixteen rocka total of 50

prospective aa, Marina, Veast of Quells. The Rebe

or the veins a

allhua and Que

AverageLength

(m)

30

600

280

100

120

30

70

450

pleting one o

Property withe Angela Vet zone. Thesequences. Ge gold is as

apping at 1:d rock chip s

geologically k channel sa0 samples we

area commenVerónica and lopata’s Mareca vein repo

as well as th

ellopata Southe

e h

A

Au (g/t)

2.400

1.451

5.600

4.881

8.600

1.081

0.005

0.478

of the require

th three newein: the Antase occurrenceochemical

ssociated wi

1,000 scale sampling from

mapped, wamples wereere taken fro

nced in 2009Rebeca vei

rtha vein. A torted low va

he structural

east Prospect A

Average Valu

Ag (g/t)

0 265.0

178.0

0 453.0

222.0

0 215.0

14.4

5 0.2

8 11.2

38

ements

w gold -Patari

ces are trends ith the

of the m vein

with an taken om the

9. Four n. The total of lues in

details

Areas

ues

Width (m)

0.5

1.0

1.2

1.0

1.0

5.0

4.7

1.4

PERevDat

9.


QP

4 2010

FolloQuecentand sam

Elevsamthesewerebandrock

Tablveins

Table

QUE

QUE

1

Zone

QUELLO-PATA SE

0 IMZ Explor

owing the acllopata arearal (ChaparrQuellopata Sples were ta

en channel ples were tae veins were

e taken in Mding colloformchip sample

e 9.2 gives s as well as t

e 9.2 - Summar

Zone

ELLOPATA C

ELLOPATA SW

J

M

Vein

Organa

Marina

Verónica

Rebeca

ration Progr

cquisition ofa. The exploral fault); QuSouth west (ken in these

samples weaken in Quee delimited aMelissa, Katm opal, and es were taken

the averagethe structura

ry of Channel S

Vein Az

Chaparral N60

Jimenas

N78

N7

Lucy I N9

Lucy II N

N9

Kattia N8

Melissa N29

Strike / Dip

70/76SE

70/75SE

55/85SE

40/85SE

ram

f Ventura byoration progrellopata sou(Melissa, Kanew veins id

re taken in Qellopata soutan area of 1ttia and Jimhydrotherman as a Jimen

e gold and sal details of e

Samples in Que

zimuth Wi

ave(m

0º/75ºSE 0

75º/60º-80ºN - 75º/60º-80ºS

0.5

90º/70ºS 0.3

N70º-90º/70ºS

0.3

80º/75ºS 0.3

95º/80ºSW

0.5

Average

Width (m)

0.7

0.6-3.4

0.2-2.4

6

y IMZ in Jaram consisteuth east (Rettia, Jimena dentified in Q

Quellopata cth east of R1.5 by 1.5 k

mena Veins, al breccias wnas Veins rec

silver gradeseach vein on

ellopata area

idth erage m)

AveragLong.

(m)

0.4 60

5-3.9 400

3-1.2 300

3-1.2 300

3-0.9 70

5-3.0 240

AverageLength

(m)

15

110

490

33

nuary 2010,ed of checkbeca, VeronVein). One

Quellopata ta

central area Rebeca, Verkm; In Quello

these strucwith chalcedoconnaissanc

for rock chthe three tar

e

Average

Au (g/t)

A(g/

0.104 17

0.048 0.

2.58 43

1.625 18

0.912 8.

0.596 15

e h

A

Au (g/t)

0.005

0.005

0.005

0.071

, IMZ continking three tanica, Marina hundred twe

argets.

of Chaparrarónica, Marinopata south ctures were onic and grayce.

annel samprget areas.

es Grade

g /t)

Width (m)

7.4 0.3

5 1

3 1

8.8 1.1

7 0.6

5 1.7

Average Valu

Ag (g/t)

5 91.6

5 36.6

5 230.0

2.9

nued explorinargets; Queand Organa

enty seven c

al fault, 26 cna, Organa west, 85 safilled with q

y silica. Fina

les taken fro

Ratio Ag/Au

Obse

>100 Sb

46

33.8 As, MHg,

44 Ba, M

18 As, M

45 As, M

39

ues

Width (m)

0.7

1.2

0.4

1.8

ng the llopata

a Vein) hannel

hannel Veins,

amples quartz,

ally five

om the

ervation

b, Hg

Hg

Mo, Sb, Mn, Zn

Mo, Hg, Zn

Mo, Sb, Hg

Mo, Sb, Hg

PERevDat

9.


QUE

5 2011

Durinfromdonesam

The 300 of M

Table

Z

QUEL

QUEL

1

Zone

ELLOPATA SE

O

V

R

1mHochsch

ng 2011 Hoc veins Jimen

e selectively,pling was ca

trenching rem of Shakiraartha.

e 9.3 - Summar

Zone

LLOPATA NE

A

S

J

LLOPATA SW

A

Cim

T

T

S

Vein Az

Organa N70

Marina N70

Verónica N55

Rebeca N40

ild Explorat

chschild contnas, Martha, taking rock

arried out in s

esulted in a ta, 300 m of J

ry of 2011 surfa

Vein

Angela NE

Shakira NE

Juliana NE

Martha

Angela SW

moide Angela SW

Tensional Angela 1

Tensional Angela 2

Shakira SW

Lucy

Jimenas

zimuth Wi

ave(m

0º/76ºSE 0

0º/75ºSE 0.6

5º/85ºSE 0.2

0º/85ºSE

tion Program

tinued with s, Angela (SW

k chips of qusoil covered a

total of 700 mJuliana, 300

ace exploration

Azimuth

N40/65-80SE

N45/70-80SE

N48/75SE

N65/70SE

N60/65SE

N65-80/70NW

N40/70NW

N40/60NW

N80/65S

idth erage m)

AveragLong.

(m)

0.7 15

6-3.4 110

2-2.4 490

6 33

m

surface sampW extensionuartz veins aareas, for thi

m of Angela m of Jimena

n

Width average

(m)

AveLo

(m

1.2 2

1 5

3 2

0.45 1

0.35 3

1.2 7

0.7 2

0.7 1

0.55 2

0.45 1

3 3

e

Average

Au (g/t)

A(g/

0.005 91

0.005 36

0.005 23

0.071 2.

pling of rocks), Shakira a

and wall rockis reason he

SW extensioas (vein syste

erage ong. m)

Ave

Au (g/t)

50 No sig

00 No sig

00 No sig

00 5.06

00 1.539

00 2.21

50 No sig

50 No sig

00 2.15

00 3.81

00 2.615

es Grade

g /t)

Width (m)

.6 0.7

6.6 1.2

30 0.4

9 1.8

s, channel sand Juliana. k in 0.4 m wavy machine

on being uncem), 100 m

erages Grade

Ag (g/t)

Width(m)

gnificant values

gnificant values

gnificant values

61.1 0.45

16.9 0.35

77.3 0.3

gnificant values

gnificant values

63.8 0.55

129 0.45

22.6 0.3

Ratio Ag/Au

Obse

>1000 Ba, P

Mn

>1000 Ba, P

Mn

>1000 As, P

Mn

40 As, H

amples wereThe samplin

wide channelsery was used

covered as wof Lucy and

Ratio Ag/Au Sh

12.08

10.98

34.98

29.67

33.86

8.64

40

ervation

Pb, Zn, n, Hg

Pb, Zn, n, Hg

Pb, Zn, n, Hg

Hg, Mn

e taken ng was s. This d.

well as 100 m

Nº Samples

342

-

-

36

107

44

17

41

275

PERevDat

10

10

10


0 Dril

0.1 Core

The take

FromPropdoes

Table

V(

Ho

0.1.1 2007

The Ange15 hand 2007

Basetotal sepaVeinas astrikecont2008

1

ling

e Drilling

following infn from the H

m 2007 to Deperty. Table 1s not include

e 10.1 - Drill Ho

Company

Ventura Gold (2007-2009)

IMZ 2010

ochschild 2011

Total

7 - 2008 Ven

2007 drillingela, Shakira,holes. The b10200N of t

7 drill program

ed on the 20of 39 core

aration betwe was tested

across a verte length of minuity of thic8).

formation onennessey an

ecember 20110.1 provideancillary dril

oles on the Inm

Phas

I

II

III

IV

V

VI

VII

VIII

1 IX

ntura Drill Pr

g campaign Martha, Teest intersecthe local gridm is reported

007 drilling ree drill holes een holes of along a stri

tical distancemore than 9ckness and

n the drill prond Pressacco

11, 326 cores the detailslling such as

maculada Prope

e NumDril

rogram

on the Inmresa and Lotions were o. A list of drid in Henness

esults, a secand 10,247100 m alongke length of e of approxi00 m and a grade throu

ogram on tho (2009) and

drill holes to on the prog

s specific geo

erty, 2007 – De

mber of ll Holes

15

15

15

19

9

36

114

9

94

326

aculada Prourdes veins

obtained fromill holes and sey and Pres

cond drill pro7 m was drilg strike and b

1,000 m (bemately 200 depth of 30

ughout the v

e Inmaculadd updated be

otaling 102,8gram for eachomechanical

cember 2010

Total (m)

2,910

3,226

4,426

4,506

4,042

15,437

35,025

3,244

30,051

102,867

operty focuseat depth at Q

m the Angelaa summary

ssacco (2009

ogram commlled at the Abetween 50 tetween linesm. Drilling e

00 m below svein (Ventura

da Property elow to 2011.

867 m have bh year to Deand hydroge

TargeArea

Quellopa

Minascuc

Quellopa

San Salva

Quellopa

Quellopa

Quellopa

Quellopa

Quellopa

ed on the inQuellopata, a Vein alongof significan

9).

menced in 20Angela Veinto 100 m dows 10000N anextended thesurface and a News Rel

from 2007-2.

been drilled cember 201eology holes

et

ata

cho

ata

ador

ata

ata

ata

ata

ata

nitial testing totaling 2,90g sections 1nt intercepts

008 during wn using a nwn dip. The Ad 11000N) a

e Angela Veicontinues toease 3 Dec

41

2008 is

on the 1. This

s.

of the 01 m in 0100N for the

which a ominal Angela as well in to a o show cember

PERevDat

10


The sumHennnorthoutcsulfidadditRele

High

The 5 co(anoholes(Ven

The by Bdept

The instrReflefield.

0.1.2 2009

In (Tab15, 2mactwo L

The resofeedunde1050strikedownsysteRele

1

vein remainmary of signnessey and hwest of theropping, mindation gold ttional evalua

ease 3 Decem

hlights of the

SS-01: Fro

SS-03: Fro

Minascuchore drill holes

other exploras returned no

ntura News R

MIN-01: F

MIN-02: F

MIN-04: F

2007 - 2008Bradley-MDH

h of 250 m a

azimuth anuments. Dipex ‘EZ-Shot’.

9 Ventura Dr

2009, 45 ble 10.2). The2009. Holes hine with HQLF70 drilling

program focurces, extener zones thaertaken betw00N and 116e with an aven-dip extent ems. The M

ease 2 July 2

ed open at dnificant interc

Pressacco e Angela Veneralized brtarget. The dation and drimber 2008).

drilling inclu

om 107.4 to

om 20.0 to 3

o breccia, los completed ation target ao significant

Release 8 Se

rom 70.65 to

rom 118.6 to

rom 104.9 to

core drilling (Bradley) of

and NQ-diam

nd inclinationp and azimut’ instrument

rill Program

core drill e drill prograwere drilled

Q-diameter romachine us

cused on thend the vein laat are still opeween section600N. As a reerage width of mineraliz

artha Vein w2009).

depth and dcepts for the(2009). The

ein. Three ceccia at Sadrill results inilling to bette

de the follow

121.5 m; 14

8.0 m; 18 m

ocated 5 km in the breccadjacent to values. Posi

eptember 200

o 107.05 m; 3

o 143.05 m; 1

o 126.95 m; 2

program onf Lima, Peru

meter rods to

n of the drith measuremwhich elect

m

holes totaam commencd by Bradleyods to 250 ming HQ-diam

e Angela Veiaterally to then at depth (

ns 10000N aesult of the pof 8.3 m. Anzation at thewas first inte

own-plunge e 2008 drill pe San Salvaore drill hole

an Salvador ndicated theer understan

wing (true wid

m at 0.4 g/t

at 0.7 g/t Au

north of thcia and two aMinascucho)itive results w08) with sign

32 m at 2.0 g

18 m at 3.6 g

20 m at 0.9 g

the Angela . All holes wthe end of h

ll stem werements were tronically rec

aling 15,43ced on 3 Juny using a mm then NQ-dmeter rods.

in at Quellope northeast (IMZ News Rand 10400N program, the additional 2

e Martha Veersected dur

to the northprogram on ador target ies, totaling

which repr presence o

nd the under

dths unknow

Au and 26 g

u and 20 g/t A

he Angela Vadditional ho), totaling 1,were reportenificant inters

g/t Au and 8

g/t Au and 45

g/t Au and 3

Vein in the Qwere drilled u

ole.

e measuredtaken every

cords the az

312 m werene 2009 andodified Hydriameter rods

pata in orderand to furthe

Release 19 Jand explora

e Angela Vei2,000 m of thin and the uing the 2007

east. A list othe Angela Vs located a450 m, were

resents a diof gold minerrlying structu

n):

g/t Ag

Ag

Vein, was droles drilled on,460 m. The

ed from the Msections as fo

g/t Ag

5 g/t Ag

g/t Ag

Quellopata ausing HQ-dia

d using topoy 100 m dowzimuth, dip a

e drilled od was complracore LD-25s to the botto

r to expand er define so

January 2010ation drilling in was extene 2009 drill p

untested Ant7 drill progra

of drill holes Vein is repopproximatelye drilled belisseminated,ralization, requre (Ventura

rilled in 200n the CentraCentral zon

Minascucho bollows:

rea was perfmeter rods u

ographic surwn the hole and local ma

on the Preted by Dec50 portable om of the ho

the known mme of the po0). Infill drillin

between sended to a 1,5program testta and Pataam (Ventura

42

and a orted in y 7 km ow an , high-quiring News

08 with al zone ne drill breccia

formed up to a

rveying with a

agnetic

roperty cember drilling

ole and

mineral ossible ng was ections 500 km ted the ri Vein News

PERevDat

10


0.1.3 2010

One fromHydrrods drillinthan width2010

Table

Sectio

10000

10050

10100

10100

10100

10150

10200

10200

10250

10300

10400

10550

10650

10700

10800

10900

1

0 IMZ Drill P

hundred - tw 15 January racore LD-25

to the bottong extended

2,000 m wih. Mineraliza0). Table 10.2

e 10.2 - Signific

on DDH D

le(m

0N Inma-207

1

0N Inma-117

1

0N Inma-04

0N Inma-16

0N Inma-75

1

0N Inma-78

2

0N Inma-14

1

0N Inma-14

0N Inma-105

2

0N Inma-19

0N Inma-152

2

0N Inma-155

2

0N Inma-163

3

0N Inma-203

3

0N Inma-197

3

0N Inma-64

4

Program

wenty one c2010 to 15 D

50 portable dom of the hthe Angela th a vertical

ation remain2 lists signifi

cant Represent

DDH ength

meters)Az In

100.50 310 -

101.30 310 -

includ

310 -

includ

310 -

includ

187.30 310 -

230.90 310 -

includ

130.30 310 -

includ

310 -

210.00 310 -

includ

310 -

270.40 310 -

269.10 310 -

320.40 310 -

330.80 310 -

320.30 310 -

457.45 310 -

includ

core drill holeDecember 2drilling machhole and twoVein minera extent of us open aloncant intercep

tative Intercept

nclFrom (m)

-52 26.88 3

-58 52.35 7

ing 52.35 6

-45 50.50 5

ing 53.20 5

-45 204.75 2

ing 212.75 2

-52 151 15

-45 187.50 19

ing 192.23 19

-45 68.00 9

ing 72.40 7

-45 87.45 9

-59 170.20 18

ing 170.20 17

-45 156.00 16

-51 240.58 24

-63 231.30 24

-80 281.24 29

-57 302.20 3

-56 297.5 3

-51 395.60 40

ing 395.60 39

es totaling 38010.The hole

hine with HQ-o LF70 drillinalization for aup to 300 m ng strike to tpts of the 200

ts for the 2007

To (m)

Inters (m)

31.22 4.34

70.60 18.25

61.15 8.80

56.65 6.15

56.65 3.45

17.15 12.40

17.15 4.40

57.65 6.65

92.98 5.48

92.98 0.75

91.35 23.35

75.90 3.50

91.35 3.90

80.00 9.80

73.85 3.65

63.75 7.75

46.56 5.98

42.80 11.50

96.75 15.51

306.9 4.70

304.4 6.90

00.76 5.16

99.30 3.70

8,269 m haves were drille-diameter rong machine an additional

and the veithe northeas07 to 2010 d

to 2010 Drill P

True Width

(meters)

Au(gpt

2.4 7.3

10.00 4.0

4.80 6.9

5.00 6.3

2.80 8.9

12.00 3.9

4.30 8.6

6.20 22.3

5.40 4.9

0.70 29.3

20.00 3.0

3.00 6.5

3.30 9.3

8.00 4.2

3.00 6.3

7.20 16.6

5.10 5.0

10.00 6.3

11.00 6.7

4.20 6.0

6.85 3.0

5.00 2.3

3.60 2.7

ve been drilleed by Bradleds to 250 m using HQ-d500 m of strn system avst (IMZ Newdrill program.

Program

u t)

Ag (gpt)

Au E(Ag/A

38 124

07 145

98 158

32 166

98 129

90 99

60 237

39 156

97 104

38 495

01 121

54 118

32 476

20 143

30 183

66 294

00 180

34 232

78 265

03 330

03 169

30 179

78 240

ed on the Prey using a m

then NQ-diadiameter rodsrike length toveraging 12.

ws Release,

Eq ppm Au=60)

Au Wi

ppm(Ag/A

9.45

6.49

9.61

9.09

11.13

5.55

12.55

24.99

6.70

37.63

5.03

8.51

17.25

6.58

9.35

21.56

8.00

10.21

11.20

11.53

5.85

5.28

6.78

43

roperty odified ameter s. The o more 5 m in 4 May

Eq-dth

m-m Au=60)

22.7

64.9

46.1

45.4

31.2

66.6

54.0

154.9

36.2

26.3

100.5

25.5

56.9

52.7

28.1

155.2

40.8

102.1

123.2

48.4

40.0

26.4

24.4

PERevDat

10


Sectio

11100

11200

11300

11500

11600

11700

11800

0.1.4 2011

DurinholesMartall pe

At thwith conswasthangto 10

1

on DDH D

le(m

0N Inma-61

4

0N Inma-73

6

0N Inma-104

3

0N Inma-91

4

0N Inma-118

6

0N Inma-137

5

0N Inma-164

4

1 Hochschild

ng 2011, infis. Resourcetha, Theresaerformed fro

he same timea total of 4,7

sisted of geote dump angingwall and 0 November.

DDH ength

meters)Az In

484.10 310 -

includ

606.50 310 -

324.10 310 -

includ

412.40 310 -

629.20 310 -

567.60 310 -

414.40 310 -

d Drill Prog

ill drilling wae delineationa Juliana, Jimm 15 Januar

e drill core an782 m in 49 otechnical dnd raw wate

footwall stri

nclFrom (m)

-55 413.00 42

ing 416.30 42

-55 470.45 47

-48 242.00 25

ing 242.00 24

-55 298.25 30

-61 338.70 34

-59 465.45 47

-43 374.48 37

ram

s carried in n and brownmenas and Nry to 20 Dece

nd reverse ciholes (46 co

drilling perforer dam. Alskes of the A

To (m)

Inters (m)

24.85 11.85

21.10 4.80

73.55 3.10

50.20 8.20

45.90 3.90

03.75 5.50

41.20 2.50

71.70 6.25

78.62 4.14

the Angela Vnfield drilling Nia, the total ember.

irculation waore drill holesrmed in the so geomech

Angela Vein.

True Width

(meters)

Au(gpt

11.00 4.0

4.50 6.7

2.90 2.2

7.60 5.0

3.60 7.9

4.60 5.3

1.90 3.4

5.00 7.1

3.60 3.8

Vein with a twas carried

drilling was 2

s performed s and 3 reve

proposed lhanical drillinThis program

u t)

Ag (gpt)

Au E(Ag/A

08 324

70 554

29 306

02 136

92 195

36 178

42 242

15 192

87 87

total of 4,520d out in Ang25,531 m in

as part of therse circulatioocations forng was comm was carrie

Eq ppm Au=60)

Au Wi

ppm(Ag/A

9.48

15.93

7.39

7.29

11.17

8.33

7.45

10.35

5.32

0 m in 12 cogela SW, S82 core drill

he Feasibilityon drill holesr the tailingsmpleted aloned out from 7

44

Eq-dth

m-m Au=60)

104.3

71.7

21.4

55.4

40.2

38.3

14.2

51.8

19.2

ore drill hakira, holes,

y Study s). This s dam, ng the 7 June

PERevDat

11

11

11

11


1 Sam

1.1 Sam

All sthat This custopote

After105 95%pulvecleanneceequicoarware

1.2 Ship

FolloexpeQua

Corebox saw.

One repostapshippThe plast

The they wereweretrans

Onceregaends

The resp

1.3 Gold

Prepabso

1

mple Prepa

mple Prepara

samples are is an integrasystem util

ody records ntial for sam

r receipt anºC (70 ºC if passing -1erized to 95ned with baessary, betwpped with du

rse rejects fehouse in Lim

pment and S

owing the logerienced samlity control w

e was brokenwithout distu.

half of the ositioned in thled shut withped to the laindividual sa

tic tape.

sealed sampwere sent o

e shipped to e inserted psported to SG

e sampling warding drill hos. They were

sample submonsible for in

d Analysis

pared sampleorption spec

aration, A

ation

received byal part of thalizes bar cofor every sta

mple switches

nd logging ithe sample

10 mesh (1% passing -arren cleaniween highly ust extractiofrom the prema for future

Storage of S

gging and complers who hwas maintaine

n, as necessurbing the sa

core was phe core box.h the sampleaboratory. Thample bags

ple bags weronward to LiIMZ’s Lima o

prior to shipGS by SGS l

was completole number,

e then stored

mission formnsertion of th

e pulps werectrophotomet

Analysis, a

y SGS-Limaat company’soding and scage in the sas and transcr

nto the LIMis to be sen.7 mm). A 2-140 mesh (ing material

mineralizedon systems tepared samreference.

Samples

ore marking phave worked ed through re

sary, into maample interva

placed in a . The tops oe tag visiblehe sample tawere placed

re shipped byima, either boffice where

pment to SGlaboratory pe

te, the ends box numbein the core s

ms for the ashe QA/QC sa

e analyzed fry (AAS) fin

and Securi

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MS system, t for mercury250 g subsa(106 micron)l between sd samples. o reduce the

mples were r

procedures dfor Suyamar

egular verific

anageable leal markers a

plastic samof the samplee in the fold ag number wd in heavy fi

y company trby commerci

the quality aGS. From tersonnel.

of the core er and from shed on-site

ssay laboratoamples.

for gold by finish (SGS c

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ocessed throy Informationhnology tharation and a.

samples wey analysis). Sample of the). The sampsample prepSample pr

e risk of samreturned to

described abrca or related

cation by on-s

engths. The pand cut in ha

ple bag ande bags were for easy ideas also writtberglass rice

ruck to the fial bus or by

assurance/quhe IMZ’s Li

boxes were and to intervat the Inmac

ory were pre

ire assay of code FAA31

ugh a sampn Managemet provides cnalytical proc

ere dried inSamples wee crushed m

ple preparatioparation bateparation st

mple contamIMZ and st

bove, the cord companiessite geologis

pieces were alf, lengthwis

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entification oen on the bae bags and

eld office in y company truality controlima office t

painted whivals was recculada Prope

pared in Lim

a 30 gram a13). Samples

ple tracking sent System (complete chcess and lim

n a large overe then crusmaterial wason equipmentches and, tations were

mination. Pulptored in a s

re was samps on other prsts.

removed frose, with a dia

half was caseveral time

f the sampleag in black msealed with

Chalhuanca ruck. The sal (QA/QC) sathe samples

ite and informcorded on therty.

ma by the ge

aliquot with s that assay

45

system LIMS).

hain-of-mits the

ven at shed to s then nt was where

e also ps and secure

pled by rojects.

om the amond

arefully es and e once marker.

heavy

where amples amples s were

mation he box

ologist

atomic yed in

PERevDat

11


excethe h

A 35pack(SGSmultgrad“com(perc

1.4 Bulk

The by VlitholArch

Dry b

Notethe w

Fifty densandesamminewith aver(< 1 with resofuturwell-shou

1

ess of 5 g/t Ahigher grades

5-element ICkage uses aS code ICP1i-acid digestes (SGS co

mbination of chloric acid)”

k Density Da

density inforVentura in 2logies. Each

himedes’ Prin

bulk density

e that with thwax used to s

one (51) of sity of these esite materiaples showing

eralized mateincreasing g

rage density g/t) had an atoo few sam

urce and resre studies es-mineralized uld make use

Au were re-ans (SGS code

CP package an aqua regi12B). Over ltion method de AAS41B)HCl (hydroc

” often referre

ata

rmation used2008 in whic sample was

nciple, the dr

= Dry weigh

he weight of seal the sam

the 100 sam51 samples

al surroundingg stockwork erial suggestgrade. The t

of 2.49 t/maverage denmples to coserve estimastablish that Angela Vein

e of densities

nalyzed with e FAG303).

was also uia acid digesimit sampleswith AAS d

). SGS repochloric acid),ed to as a ‘n

d in the resoch density ws dried, weigry bulk densit

t in air ÷ (Dry

the sealed smple before it

mples in thiswas 2.51 t/mg the mineraalteration in

t that there mten samples 3, while the

nsity of 2.53 onfirm whethates use a sithere is a st

n and weaklys that capture

a gravimetri

tilized for bastion with ats returning mdeterminationorts that the HNO3 (nitriear- total dig

ource and rewas calculateghed in air, sty of the mat

y weight in a

sample was at was immers

s study were m3. The averalized vein wan andesitic mmay be a vewith highesten sample

g/t. With theer or not thngle density tatistically sigy mineralizede this relation

ic finish to en

ase metal atomic emissmore than 1n of silver, amulti-acid dic acid), HF

gestion’.

eserve estimaed for 100 ssealed in waterial is base

ir – Weight o

adjusted to tsed in water.

taken from rage density as 2.54 t/m3.

material wasery slight tent gold-equiva

es with the lse difference

hey are staticonstant, 2.

gnificant diffd Angela Veinship.

nsure a more

and silver deion spectros00 g/t Ag w

a method opigestion used(hydrofluoric

ates comes samples of x and weighd on the follo

of sealed sam

take into acc.

the Angela Vof the 29 sa. The averag 2.44 t/m3. T

ndency for dalent gradeslowest gold es being smastically sign.51 t/m3, for ference betwn, then futur

e accurate re

eterminationsscopy (AES)ere re-run uptimized for d for AAS41c acid) and

from a studydrill core fro

hed in water.owing formul

mple in wate

count the we

Vein. The avmples of una

ge density of The 51 sampensity to dec

s (> 10 g/t) hequivalent gall, only 1-2%ificant, the cthe Angela V

ween the denre resource s

46

esult at

s. This ) finish using a

higher 1B is a HClO4

y done om six Using la:

r)

eight of

verage altered the 20

ples of crease had an grades %, and current Vein. If nsity of studies

PERevDat

12

12

12


2 Dat

2.1 Verif

The Canaorigithe werrorby Sdrill resosaminterwirefthe gchecappe

2.2 Inde

The Mr Iacore colla

Ten SamThe wereChem

At noto thtime

A cogold silvewhat

1

a Verificat

fication of D

Database wada Consultanal assay cewrong intervrs. The Dece

SGS. The onholes, the Qurce estimatple intervals

rsect the Angframe nearbygrade estimacked against ear in earlier

ependent Ch

Inmaculada an Dreyer, C

logging andars were colle

assay verificmple intervals

chosen intee documentemex in Lima,

o time, prior e location or, have acces

omparison of and silver a

er were satisft was origina

tion

Database fro

was recompilants Inc. (FSertificates ide

val, assay vaember 2011 ly drill holes

QU series, whtes are QU-0whose gold

gela Vein, buy; in this senates. For the

tabulations project repo

hecks

Property waCP on 13 Juld sample prected by GPS

cation sampls were taken rvals were ted, bagged , Peru for an

to the time r identificatioss to the sam

the indepenare depictedfactory and c

ally reported.

om Assay C

led in SepteSS), after spentified sevealues not enmineral reso

s for which thhich were dr07 and QU-2

d and silver aut its lack of nse, QU-25 dese two drillof assay va

orts.

as visited by y 2011. A to

rotocols wereS in 2010.

les were takefrom a variehen sampledand sealed alysis.

of sampling,on of any of tmpled materia

dent sampled in Figures clearly demo

ertificates

ember 2010 pot-checking eral types oftered into thource updatehis verificatiorilled by Hoc25. QU-07 inassays are ustrong miner

does affect thholes, the alues, and av

Mr. David Buour of the drie observed.

en from nineety of low, med by taking t

with packin

, were any ethe sample inal.

e verification 12.1 and 1

onstrate that

by R. Mohaof the elect

f errors, incluhe electronice correspondon was not pchschild. Of tntersects theused for gradralization forhe volume (aassay data inverage value

urga, P. Geoll sites was Check coo

e drill holes dedium and hthe remaininng tape and

employees orntervals to be

results versu2.2 respectivthe tenor of

an Srivastavatronic assay uding assay

c data base, ds exactly topossible werthese, the twe Angela Vede estimationrces closure and tonnage)n the electros across the

o. on 10 and undertaken ardinates for

during the Juigh grade mi

ng half-split cd taken by M

r associates e collected n

us the originavely. The ref the mineral

a, P. Geo. odata base a

y values enteand typogra

o the data prre the earlieswo which affein, and contrn. QU-25 doof the Angel) estimates, bnic data bas

e Angela Vei

11 June 201and core haselected dri

une 2010 sitineralized macore. The saMr. Burga to

of IMZ advisnor did they,

al assay resuesults for goization is sim

47

of FSS against ered in aphical ovided st core ect the ributes

oes not a Vein but not se was in, that

10 and ndling, ill hole

te visit. aterial. amples o ALS

sed as at any

ults for ld and

milar to

PERevDat


Figur

Figur

1

re 12.1 - Verific

P&E

0

100

200

300

400

500

600

E529

1141

E529

11

re 12.2 - Verific

cation Sample R

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1142

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1143

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1

cation Sample R

Results for Go

t Verificatio

9114

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P&E Sam

Results for Silv

ld, June 2010

on Sample

9114

6

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ple Number

ver, June 2010

e Result for

2911

48

E529

1149

E529

r Ag: June

2911

50

2010

Original Ag VQA/QC Ag Va

48

Valuesalues

PERevDat

12

12


2.3 Qua

Coreblanlabostandafter

The in senum

The by Iconta

IMZ resuresudeviaIMZ’

The gold-Rockrangover loweand assa

2.3.1 Dup

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1

lity Assuran

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position of thequence withbering of the

reliability of IMZ, that inamination) a

has a headlts of the stalts, anomaloations from ts exploration

standards c-silver mineklabs Ltd., ae from roug

r 1,000 g/t. Aer silver grade

thus serve ays.

licate Samp

selected broximately 1ples were s

ay. Approximay results, anused as the e employed

precision ofwn in Figuresassays withirent labs, the inter-laborratory. The cstill have alm

e 2007, nonto poor inven

nce and Qua

rom Inmaculserted and

ma. Either a slanks being ucore sample.

he QA/QC sah the core s

e standards a

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consist of fiveeralization, aa commerciaghly 0.3 g/t toAs discussed

es up to 30 gas the bette

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ality Contro

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standard or aused alternat

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ada assay r use of st

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geologist wnks and duplalues for the d values for nd followed u

e standards,and two of al provider oo nearly 9 gearlier, the i

g/t; the exterer source of

and coarse amples weredomly, renumthe pulps wet to a seconaboratory by

ary laboratory

assays was 2.4. For the their averagea very high ks do not ict duplicates the duplicate

plicate scatte, or with typo

l Programs

hipped to IMsample shipa blank was tely; this res

determined ere reservedwas seamless

esults was mtandards (tor precision).

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three of whwhich were

of standard g/t; the silverinternal silvernal silver staf information

reject dupe sent for chmbered andere selected dary laborat

y IMZ; it analy, SGS.

monitored upulp duplicate; with the pudegree of pndicate anyshow slight

es within ± 10

r plots has inographical or

MZ’s Lima ofpment prepainserted afteults in one o

in the field d for QA/QC sly integrated

monitored byo monitor a

nts the QA/Qng for signifi

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hich were mae commercia

reference mr standards er standards andards used on the acc

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using scatter tes, almost aulp duplicaterecision in th

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ffice where tared for deler every ten cf the five sta

uring loggingpurposes s

d with the co

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ple results whmalous result

anufactured al standardsmaterials. Thrange from used by SG

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be checkedAbout 5% ofto the SGS

y, usually bask assay. ALSmples using

plots, examall of them (oes having beehe assay va

with systemaision than thverage.

y problem win errors.

the standardivery to thecore sample

andards being

g and sampleso that the sore samples.

program condlanks (to m

m and monitoancies in duhich are signs were repo

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an the entire e high-grade

d by re-assf the coarse laboratory sed on unexS Chemex insimilar meth

mples of whiover 99%) haen assayed lues. Furtheatic bias in he pulp dupl

ith sample m

49

ds and e SGS es, with g used

e tags, sample

ducted monitor

ors the plicate

nificant rted to

m local d from ndards ities to nly the range,

e silver

saying. e reject for re-pected n Lima hods to

ch are ave the by two rmore, either

icates,

mix-ups

PERevDat


FigurSGS

1

re 12.3 - ScatteLaboratory to t

r Plot for Pulp the Duplicate S

Duplicates, ShSilver Assays f

howing the Comfrom the ALS C

mparison of thChemex Labora

he Original Silvatory

ver Assays from

50

m the

PERevDat

12


Figurfrom

2.3.2 Blan

The Agreafter

Blanline acceamosigni

Sincshowblanextrewith

1

re 12.4 - Scattethe SGS Labor

nks

material usegados Calcar) each stand

ks were moon the contr

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r Plot for Coarratory to the D

sed as blankareos. A bladard.

nitored usingrol chart shofor blank assand silver,

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xceeded 1.5round the 1s

mounts obser

rse Reject Dupluplicate Silver

ks for the Inank was inse

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Inmaculada s-contaminatg/t with an

st percentile rved in one o

licates, Showinr Assays from t

nmaculada erted after ev

arts as showay values repthe locally pble upper limr silver from m

drilling, thertion betweenexample of of the silver

of the local so

ng the Comparthe ALS Chem

Property is very 20th sam

wn in Figuresported by theurchased sto

mit is set at amineralized c

re have beenn samples. this in Figugrade distribources used

rison of the Oriex Laboratory

locally purcmple, ten sa

s 12.5 and 1e lab; the bluone does, in a threshold dcore samples

n no blank sOn rare occre 12.6. Thi

bution and is by Agregad

iginal Silver As

chased stonemples befor

12.6. The maue line definfact, contain

designed to s.

samples thacasions, theis level of sentirely con

os Calcareos

51

ssays

e from e (and

agenta nes the n trace detect

at have e silver ilver is sistent s.

PERevDat


Figur

Figur

1

re 12.5 - Contro

re 12.6 - Contro

ol Chart for Ext

ol Chart for Ext

ternal Gold Bla

ternal Silver Bl

anks

lanks

52

PERevDat

12


2.3.3 Stan

The fromfromrangover loweand assa

Eitheblan20th

Extebelowmagacce

Figur

1

ndards

external sta local gold-s Rocklabs Le from roug

r 1,000 g/t. Aer silver grade

thus serve ays.

er a standarks being usecore sample

ernal standarw. The red senta line sho

eptable range

re 12.7 - Contro

ndards conssilver mineratd., a comme

ghly 0.3 g/t toAs discussed

es up to 30 gas the bette

rd or a blanked alternatel

e.

rds were mosolid line onows the assae for each sta

ol Chart for Ext

sisted of five alization, andercial provido nearly 9 gearlier, the i

g/t; the exterer source of

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onitored usi the control ay values repandard, and

ternal Gold Sta

standards, td two of whier of standa

g/t; the silverinternal silvernal silver staf information

ted after evets in one of

ng control cchart showsported by theare set at ±

andards

three of whicch were comrd referencer standards er standards andards used on the acc

ery ten corethe five sta

charts like ths the referene lab; and th10% of the r

ch were manmmercial sta materials. Trange from used by SG

d by IMZ spacuracy of the

e samples, wndards being

he one shownce value forhe blue dashreference val

nufactured byandards purcThe gold stantrace quantiS covered o

an the entire e high-grade

with standardg used after

wn in Figurer the standaed lines defilue.

53

y SGS chased ndards ities to nly the range,

e silver

ds and r every

e 12.7 rd; the ine the

PERevDat

13

13


3 Min

3.1 Intro

The undeof 3,proc

The circucircurecovCrow

The doré

The redutailinwateprov

1

neral Proce

oduction

Inmaculadaerground min506 t/d, withess plant de

process flowuit (SAB) opeuit, for preciovered in solu

we circuit.

precipitated é.

leach circuice the weak

ngs storage fer. Fresh waides an over

essing an

a project is ning operatioh 91% availasign feed gra

wsheet includerating in cloous metal dution in a co

gold and s

t tailings arek acid dissocfacility (TSF)ater is provirall process b

d Metallur

being deveons. The goldability, in a pades are 4.5

des single staosed-circuit wdissolution inunter curren

ilver will be

e treated forciable cyanid). Water is reided for speblock diagram

rgical Tes

eloped by Md-silver beariplant recover g/t Au and 1

age crushingwith cyclonesn cyanide sot decantation

dried and s

r cyanide dede (CNwad)eclaimed froecific use wm.

sting

Minera Suyang ores will b

ring the prec164 g/t Ag.

g, followed bys. The grounolution. The n (CCD) circ

smelted on s

estruction bylevel to <50

om the TSF awithin the pro

amarca S.Abe processe

cious metal in

y grinding innd slurry is tgold in leac

cuit and prec

site to produ

y the INCO S0 ppm, prior and used asocessing cir

.C. with ored at a nominnto doré bar

a SAG-ball then fed to ach solution w

cipitated in a

uce gold and

SO2/Air metto release in

s make-up prcuits. Figure

54

e from nal rate rs. The

milling a leach will be Merrill

d silver

hod to nto the rocess e 13.1


F

T-0001

y 2012

Figure 13.1 - Block D

ORERUN-OF-MINE

(ROM)

C

Diagram of the Proc

CRUSHING G

STEEL GRINDMEDIA

cessing Facility

GRINDING L

DINGLIME LIME

CYAN(SO

ANTISCALAN

LEACHINGCOUN

DE

PRECR

(MER

GO

P

D

DIATOMACEOUS EARTHLEAD NITRATEZINC IN POWDER

VACUUM

NIDEOL.)

OXYGEN FL

PREGNANT SOLUTION

LEADNITRATE

NT

FLUXES

NTER CURRENTCANTATION

(CCD)CYA

CIOUS METALSRECOVERYRRILL-CROWE)

OLD ROOM

PRECIOUSMETALSORE BARS

OCCULANT OXY

BARREN SOLUTION

LIME

GAME

ANIDE DETOX TAILING

YGEN

SODIUMMETABISULFITE

(SMBS)COPPER

SULPHATE

U

WATER O/F

FL

AS ANDERCURY

TAILIN

ANTISCALANT

RECOVERY WATER

RECOVERY WATER

WATER O/F

GS THICKENING

U/F

OCCULANT

NGS STORAGE

R

WATER O/F

LIMEHP

PASTE BACKFILLPLANT

PASTE BACKFILLTO MINE

As & CuREMOVAL CIRCUIT

HYDROGENPEROXIDE

FERRICSULPHATE

OXYGEN

CEMENT

55

PERevDat

13


3.2 Key

The purpvein,(DDHcom

In adcharmeta

The are d13.2

1

Sample Sel

Angela Veinposes of sele, with the thH) ¼ core aposite of the

ddition, variaracteristics sallurgical res

drill hole locdepicted in F.

lection Crite

n was divideecting metalluird domain rand ½ core material in e

ability samplespatially withponse of the

cations from Figure 13.2.

eria

ed into three urgical samprepresenting samples we

each domain

es were selehin the dep

ese ores.

where the zThe intercep

zones or doples. The firs

ore at the dere selectedn.

ected to provposits, and

zone compospts selected

omains alonst domain repdeepest sect from these

vide an undedetermine

sites and varare shown in

g the strike presents thetion of the ve

e domains to

erstanding ofany potenti

riability compn Tables Tab

of the vein f upper zoneein. Core dro represent

f the changeal impact o

posites wereble 13.1 and

56

for the of the

rill hole a bulk

in ore on the

e taken d Table


F

T-0001

y 2012

Figure 13.2 - Metalluurgical Drill Hole Loocation

57

PERevDat


Table

Ho

INM

INM

INM

INM

INM

INM

INM

INM

INM

INM

INM

INM

INM

INM

INM

INM

INM

INM

INM

INM

INM

INM

INM

INM

INM

INM

1

e 13.1 - Zone Co

Zone 1 Com

ole ID Fro

MA-05 75.6

MA-14 71.9

MA-15 129

MA-16 204

MA-18 104

MA-19 156

MA-20 127

MA-24 218

MA-26 224

MA-27 254

MA-72 189

MA-80 215

MA-84 86.6

MA-85 246

MA-89 191

MA-92 235

MA-93 36.0

MA-123 139

MA-124 83.8

MA-126 232

MA-128 268

MA-133 67.6

MA-138 194

MA-140 214

MA-141 277

MA-145 116

omposites Dril

mposite

om To

6 79.6

9 78.9

9.9 135.5

4.8 217.2

4.7 107.7

6.0 163.8

7.7 133.6

8.3 226.1

4.8 233.3

4.1 261.8

9.0 192.9

5.2 218.5

6 91.3

6.0 253.6

.0 195.3

5.0 244.5

0 40.6

9.9 145.6

8 91.3

2.5 240.9

8.5 272.7

6 75.9

4.1 198.3

4.0 223.4

7.5 284.0

6.8 122.1

ll Hole Identific

Z

Ho

INMA

INMA

INMA

INMA

INMA

INMA

INMA

INMA

INMA

INMA

INMA

INMA

INMA

INMA

INMA

INMA

INMA

INMA

INMA

INMA

INMA

cation

Zone 2 Comp

ole ID Fro

A-22 104

A-23 155

A-29 202

A-30 311

A-32 290

A-33 172

A-35 197

A-36 274

A-44 124

A-53 275

A-55 176

A-58 379

A-62 308

A-64 394

A-156 182

A-158 197

A-167 301

A-182 207

A-189 120

A-196A 322

A-203 301

posite

m To

.6 107.2

.0 162.9

.3 207.1

.8 324.1

.4 297.2

.6 182.1

.0 203.7

.8 281.3

.1 130.2

.3 287.8

.0 182.1

.3 382.8

.5 315.5

.2 399.3

.4 195.8

.9 207.0

.2 309.2

.2 212.7

.6 129.8

.9 339.2

.3 307.7

Zon

Hole ID

INMA-65

INMA-68

INMA-73

INMA-77

INMA-90

INMA-10

INMA-10

INMA-10

INMA-11

INMA-12

INMA-12

INMA-13

INMA-13

INMA-14

INMA-14

INMA-15

INMA-16

INMA-16

INMA-17

INMA-17

INMA-18

INMA-19

INMA-20

ne 3 Compos

D From

5 299.4

8 474.0

3 470.5

7 361.0

0 465.3

01 535.4

04 241.5

07 504.3

14 379.7

22 424.8

25 479.8

37 465.5

39 543.2

43 540.3

49 432.7

59 239.6

61 366.1

64 374.5

71 305.9

75 349.7

81 333.8

92 272.4

04 188.7

58

ite

To

305.4

478.5

474.2

364.9

471.3

543.2

246.6

506.3

384.3

440.9

486.7

491.3

548.3

546.8

442.8

246.9

378.9

378.6

310.8

359.0

344.9

285.4

197.1

PERevDat

13


Table

Ho

INM

INM

INM

INM

INM

INM

INM

3.2.1 Varia

A suextra

Table

Co

VC1

VC2

VC3

VC4

VC5

VC6

VC7

VC8

VC9

VC1

VC1

VC1

VC1

VC1

1

e 13.2 - Summa

Zone 1 Var

ole ID Fro

MA-04 49.5

MA-75 148

MA-135 101

MA-106 178

MA-151 175

MA-103 154

MA-017 201

ability Com

ub-sample waction testwo

e 13.3 - Variabil

omposite

1 0

2 3

3 1

4 1

5 2

6 2

7 4

8 6

9 3

10 1

11 3

12 4

13 3

14 6

ary of Variabilit

riability

om To

5 707

8.6 158.5

1.1 110.9

8.7 193.8

5.2 283.6

4.7 169.5

1.2 231.9

posites

was taken froork. The resu

lity Composite

Au g/t

Agg/t

.84 33

.46 132

1.4 74

.42 39

.98 110

.89 63

.34 133

.25 221

.03 140

.92 111

.42 78

.69 249

.07 223

.25 188

ty Samples Loc

Z

Hole

INMA

INMA

INMA

INMA

INMA

INMA

INMA

om each varults are summ

e Head Assays

As ppm

50

40

40

190

30

100

30

10

160

20

410

1050

30

2670

cations

Zone 2 Variab

e ID From

-163 283.2

-200 200.8

-197 291.8

-154 197.0

-185 228.3

-180 227.3

-193 185.1

riability compmarized in Ta

Corganic

%

<0.03 4

<0.03 3

<0.03 1

<0.03 2

<0.03 1

<0.03 4

<0.03 7

<0.03 1

<0.03 1

<0.03 3

<0.03 2

<0.03 1

<0.03 4

<0.03 9

bility

m To

299.0

218.1

305.0

207.0

246.9

258.5

220.8

posite for a able 13.3

Cu ppm

Hgpp

46 0.40

324 0.20

110 0.20

26 0.10

116 0.10

48 0.30

72 0.20

126 0.20

146 0.20

36 <0.1

214 0.20

1540 0.90

416 <0.1

98 1.80

Zon

Hole ID

INMA-61

INMA-10

INMA-18

INMA-12

INMA-10

INMA-18

INMA-83

INMA-13

duplicate he

g pm

Pb ppm

0 155

0 310

0 75

0 270

0 315

0 175

0 205

0 260

0 615

1 175

0 190

0 1435

1 6640

0 575

ne 3 Variabili

D From

1 411.2

00 270.8

86 359.2

29 361.5

09 421.4

83 333.9

3 329.1

37 420.0

ead assay p

Ssulfide %

0.70

0.64

0.50

0.66

0.42

0.44

0.20

0.20

0.74

0.14

1.36

1.92

1.26

4.06

59

ity

To

424.9

280.7

369.5

371.5

434.5

358.8

341.7

455.0

prior to

Zn %

0.04

0.09

0.08

0.09

0.20

0.06

0.04

0.05

0.18

0.04

0.11

0.16

1.16

0.12

PERevDat

13


Co

VC1

VC1

The headsome

The com20 pwith

Orgacons

The arsehigheindic

3.2.2 Dom

The while46:1

The40 p

Orgacons

Table

Au

Ag

As

Corg

Cu

Hg

Pb

Ssulf

1

omposite

15 5

16 1

Inmaculada d grades rane outliers of

majority of thposites recopm to 2,480a few compo

anic carbon sidered below

variability snic content er gold and

cates a slight

main Compo

Inmaculada e silver head.

e samples copm to 370 pp

anic carbon sidered below

e 13.4 - Domain

Analyte

ganic

fide

Au g/t

Agg/t

.77 199

1.55 294

variability conged from 32very low gold

he samples cording high s ppm in variaosites below

content wasw the limit tha

ample assayat depth. T

d silver assatly higher refr

osites

domain comd grade range

ontained sulpm in domai

content waw the limit tha

n Composites H

U

g/t

g/t

ppm

%

ppm

ppm

ppm

%

As ppm

40

2480

omposites go2 to 296 g/t. d grade.

contained susulfide valueability compothe detectio

s below detat would cau

ys showed aThis was conays but alsoractory gold

mposites golded from 101

fide sulfur inn composite

as below deat would cau

Head Assays

Unit

4

1

1

<

6

0

2

0

Corganic

%

<0.03 1

<0.03 1

old head assThe silver-to

ulfide sulfur ines in the ranosites. Merc

on limit.

tection of 0.use preg-robb

a general innfirmed witho higher coproportion a

d head assayto 244 g/t. T

n the range s. Mercury le

etection of 0use preg-robb

DomainComposite

4.24

101

160

<0.03

60

0.1

205

0.64

Cu ppm

Hgpp

112 <0.1

134 0.60

says rangedo-gold ratios

n the range 0nge 1.4 to 4ury levels ra

03% in all bing in a leac

ncrease in th the domain

opper, mercut depth.

ys in Table 1The silver-to-

0.4 to 1.04evels ranged

0.03% in allbing in a leac

n e #1 Co

3.34

134

40

<0.03

140

0.2

535

0.40

g pm

Pb ppm

1 560

0 170

from 0.8 to s varied from

0.2 to 0.8%, 4%. Arsenic anged from 0

variability coch circuit.

he sulfide sun samples. ury, sulfur a

13.4 ranged -gold ratios v

4%. Arsenic d from 0.1 pp

l domain coch circuit.

Domain mposite #2

3

Ssulfide %

0.18

2.94

12 g/t, whilem 23:1 to 43

with four varlevels varied

0.1 ppm to 0.

omposites. T

ulfur, mercuDomain thre

and arsenic

from 3.3 to 5varied from 2

levels variedpm to 0.2 ppm

omposites. T

DomaCompos

5.26

244

370

<0.03

448

0.2

865

1.04

60

Zn %

0.15

0.04

e silver :1 with

riability d from .9 ppm

This is

ry and ee has

which

5.3 g/t, 24:1 to

d from m.

This is

ain ite #3

PERevDat

13

13

13


Zn

3.3 Sam

A totcomThe and

3.4 Test

MetaNeva

The formequiin Ma

3.4.1 Mine

Minecomores ores the dsam(wt %

Table

Com

1

Analyte

mple Prepara

tal of 443 driposites werehalf core ana portion spl

twork Progr

allurgical testada. The tes

Determina

Response

Response

Rougher c

latest feasibed the basispment sizingay 2011. It w

Mineralogy

Comminut

Gravity rec

Whole ore

Oxygen up

Rheology;

Thickening

Cyanide d

eralogy

eralogical expositions. Thare hosted are hosted

dominant suple were sp

%) in the elec

e 13.5 - Summa

Samp

mposite # 1

U

ppm

ation

ll core interve selected fond quarter cit for gold an

rams

ting was inititwork include

ation of stand

to whole ore

to flotation t

concentrate a

bility level tes for preparig. The testwowas complete

y;

tion characte

covery;

e cyanidation

ptake;

g and vacuum

etoxification

xamination ohe host lithoin bimodal

in andesite-dulfide mineraphalerite, chctrum was ab

ary of the Detec

ple

More in pan

Unit

6

vals were seleor compositeore received

nd silver assa

ated in mid-2ed:

dard “Bond” g

e cyanidation

to produce co

and tailings r

estwork proging the desigork was conded October 2

eristics of the

;

m filtration of

.

on three samology has bebasalt-rhyolidacite intrusial in all threhalcopyrite about 60/40 in

cted Gold Bear

Gold Ph

Electrum

DomainComposite

666

ected for var samples for

d at ALS Amay.

2009 at McC

grinding and

n (heap and

oncentrate fo

response to c

gram was degn criteria, pducted by A

2011. The pro

e three doma

f tailings; and

mples was ceen describete sequenceions. Quartz e composite

and tetrahedn all three co

ring Particles i

hase Lib

Mainly

n e #1 Co

1,460

riability testwr use in the

mmtec (Amm

Clelland Labo

abrasion ind

agitation lea

or third party

cyanidation.

esigned andprocess flowmmtec in Peogram includ

ain composite

d

completed. Ted elsewherees, while the

is the domines. Other sudrite, galenaomposites

n the Samples

beration

y

Domain mposite #2

0

work and a toInmaculada

mtec) were c

oratories (Mc

dices;

ching);

y processing;

d supervisedw diagrams, merth Australiaded testwork

es;

The three sae (in Sectione intermediatnant gangue ulfide mineraa and Ag-su

s

Size

Mainly

DomaCompos

1,694

otal of 736 drtestwork prorushed to <2

cClelland) in

; and

by Ausencmass balanca, and commto establish:

amples had n 8.2). Lowte and high mineral and

als detected ulfides The

61

ain ite #3

rill core ogram. 25 mm

Reno,

o, and ce and

menced :

similar sulfide sulfide

d pyrite in the Au/Ag

PERevDat

13


Com

Com

3.4.2 Com

A seselecsamdrillh

For tball were

Table

Dom

Dom

Dom

Var

Var

Var

Was

Was

Was

1

Samp

mposite # 2

mposite # 3

mminution

Unconfine

election of 15cted to deteples tested

hole depth.

Bond Wor

the Bond rodmill indices

e also comple

e 13.6 - Summa

Sample

main # 1

main # 2

main # 3

iability compo

iability compo

iability compo

ste # 1

ste # 2

ste # 3

ple

concentrate than pan tail

Pan concentrate

Several in pan tail, alsoin pan concentrate

d Compress

5 domain coermine uncowas 56 MPa

k Indices.

d mill indices(BBWi), the

eted and are

ary of Bond Wo

e

osite # 1

osite # 7

osite # 12

Gold Ph

Electrum

o Electrum

ive Strength

omposites, 8 onfined coma and did n

s (BRWi), thee closing scre summarized

ork Indices

Ai (g)

0.367

0.463

0.439

0.196

0.364

0.449

0.090

0.168

0.248

hase Lib

encapexposchalcoquartz

Libera

Mainlyencap(argenquartzliberat

.

variability cmpressive str

ot indicate a

e closing scrreen apertured in Table 13

beration

psulated or sed (pyrite, opyrite and z)

ated

y psulated ntite or z) or ted

omposites arength (UCSany strong c

reen aperturee was 75 µ3.6.

BRWi (kWh

17.7

18.2

17.6

18.5

16.3

16.8

17.1

17.1

20.9

Size

<20µm but one liberated grain is 47 x 33µm

<10µm

Mainly <20µm but one liberated grain is 45 x 17µm

and 10 wasteS). The avecorrelation to

e was 1,180m. Bond ab

h/t)

e compositeserage UCS o mineralizat

0 µm. For therasion indice

BBWi (kWh

20.1

20.6

19.9

18.9

19.9

21.2

17.0

18.0

22.4

62

s were for all tion or

e Bond es (Ai)

h/t)

PERevDat

13

13


All tmod

Dropcomaver

3.4.3 Grav

Gold18 tosilvedoes

Table

ComId

DomCom

DomCom

DomCom

3.4.4 Who

All thand grindconcprecnitra

1

the sampleserately hard

SAG Mill C

p weight indicposites and t

rage of 4.6 kW

vity concent

d recovery byo 23%. Subser extractionss not incorpo

e 13.7 - Gravity

mposite dentity

T

main mp #1

HS

HS

main mp #2

HS

HS

main mp #3

HS

HS

ole Ore Cyan

hree domain Ag being 98

d size and ccentration of ious metal lte.

s tested arfor ball millin

Comminution

ces (DWi) wthree waste Wh/m³ which

tration and

y gravity ransequent leacs of 97% andorate a gravity

y Separation / D

Test No

Gravity

LeaNitra

te (g/t

25488 0

25583 250

25489 0

25584 250

25490 0

25585 250

nidation

composites 8% and 92%cyanide con1,500 ppm wleaching kin

re considereng.

n Testwork.

were obtainedcomposites.

h indicates a

Intensive Le

nged from 35hing of the gd 91%, respey circuit.

Direct Cyanidat

a-y d a-

t)

% Au Ext

Gravity

43.5

52.2

35.9

46.0

40.6

50.3

responded w% respectivelyncentration. Awere selectedetics were t

ed moderate

d from 3 Dom These showlow to mode

eaching

5 to 50% andgravity conceectively. The

tion: Concentr

traction ALe

Res(p

96 hrs

96.8 0.1

96.2 0.1

97.9 0.1

97.4 0.0

97.3 0.1

96.9 0.1

well to directy. The recovA grind sized for the desthe use of o

ely abrasive

main composwed a range erate resistan

d recovery oentrate result present flow

ate Lead Nitrat

Au each sidue pm)

%Extr

Gravity

5 17.9

3 22.6

0 18.8

9 19.3

8 20.0

7 22.4

cyanidation very of gold e 80% passsign. Other faoxygen spar

e and typic

sites, 3 variaof 3.93 to 5.nce to breaka

of silver by gted in averagw sheet deve

te Addition

% Ag raction

LRe(p

y 96 hrs

92.1 10

87.2 14

94.7 8

94.6 8

87.6 30

92.7 18

with averagand silver wing (P80) 50actors that rerging and th

cally classifi

ability comm50 kWh/m³ wage.

gravity rangege overall goeloped by Au

Ag Leach esidue ppm)

Cons(

Lime

0 0.64

4 0.56

0.53

0.43

0 0.67

8 0.61

e extractionswas sensitive

0 µm and cyesulted in impe addition o

63

ed as

inution with an

d from old and usenco

sumptionkg/t)

NaC

N

1.67

1.74

2.02

1.95

2.17

2.24

s of Au to the

yanide proved of lead

PERevDat


Table

ComId

DomCom

DomCom

DomCom

Bulk sumextra

Table

ComId

DomCom

DomCom

DomCom

The sam

Resu

1

e 13.8 - Standar

mposite dentity

main mp #1

HS

main mp #2

HS

main mp #3

HS

cyanide leamarized in Tactions and r

e 13.9 - Bulk Di

mposite dentity

main mp #1

HS

main mp #2

HS

main mp #3

HS

results showples (Table 1

ults from the

rd Direct Cyan

Test No

Ex96

S25485

S25486

S25487

ch tests usinTable 13.9. Treagent cons

rect Cyanidatio

Test No

Ex96

S25805

S25806

S25807

wed similar le13.8).

direct cyanid

idation


AuR

96.5

97.7

97.4

ng 20 kg of eThese tests sumptions du

on


AuR

97.5

97.6

97.5

each extract

dation tests o

u Leach Residue

(g/t) Ex96

0.18

0.10

0.18

each domain are likely to

ue to the sam

u Leach Residue

(g/t) Ex96

0.11

0.09

0.15

ions to those

on the variab


AR

89.9

93.3

91.7

composite wbetter repre

mple size.


AR

92.6

93.9

90.4

e achieved in

bility samples

Ag Leach Residue

(g/t)

12

10

22

were compleesent the ex

g Leach Residue

(g/t)

8.2

8.0

22

n the standa

s are shown

Consumptio(kg/t)

Lime N

0.37 2

0.65 1

0.67 2

ted and the xpected plant

Consumptio(kg/t)

Lime N

0.64 1

0.59 1

0.67 1

ard tests usin

in Table 13.

64

on

aCN

2.37

1.55

2.03

results t scale

on

NaCN

1.08

1.05

1.56

ng 3 kg

10.


T

T-0001

y 2012

Table 13.10 - Direct

Composite Identi

VC #01

VC #02

VC #03

VC #04

VC #05

VC #06

VC #07

VC #08

VC #09

VC #10

VC #11

VC #12

VC #13

VC #14

VC #15

VC #16

Cyanidation Variab

ty Test N

HS2570

HS2570

HS2571

HS2571

HS2571

HS2571

HS2571

HS2571

HS2571

HS2571

HS2571

HS2571

HS2572

HS2572

HS2572

HS2572

bility Composites

o % Au E

H

08

09

10

11

12

13

14

15

16

17

18

19

20

21

22

23

Extraction 96 Hours

A

96.8

97.3

99.1

94.5

97.7

96.0

98.2

98.9

96.5

97.7

94.1

93.0

97.0

92.7

97.1

89.3

Au Leach Residue (ppm)

0.03

0.10

0.11

0.08

0.07

0.13

0.08

0.07

0.11

0.05

0.22

0.34

0.10

0.52

0.17

1.19

% Ag ExtractioHours

93.7

94.9

95.8

92.7

88.2

92.9

94.4

96.1

91.6

93.0

88.0

73.4

95.2

85.6

89.9

84.2

on 96 Ag Leac(p

2

7

3

2

1

5

8

9

1

8

1

6

1

2

2

4

h Residue pm)

2.3

7.0

3.5

2.8

3.7

5.0

8.0

9.8

3.1

8.5

0.7

8.0

1.5

8.0

1.0

8.0

Consumpt

Lime

0.82

0.59

0.82

0.65

0.67

0.74

0.83

0.58

0.62

0.42

0.87

0.61

0.53

0.89

0.50

0.83

tion (kg/t)

NaCN

1.57

2.00

1.81

1.62

1.63

1.68

1.70

1.55

1.71

1.75

2.25

2.70

2.25

2.10

1.51

1.70

65

PERevDat

13

13


The condgold

3.4.5 Rheo

Slurr

Table

SampIdent

DomaComp#1

DomaComp#2

DomaComp#3

3.4.6 Thic

Thicspec

The combe th

Filtraas psuita217

1

average exditions (inclu

and silver re

ology

ry viscosity m

e 13.11 - Rheolo

ple tity

Screen Size P80 (µm)

ain p 50

ain p 50

ain p 50

ckening and

kening and cialize in this

thickening pleted using hickened to b

ation testworpaste backfillable for tailinkg/h/m².

xtractions foding domain

espectively.

measuremen

ogy Results

Pulp Temp.

p

Ambient 11

Ambient 11

Ambient 11

Filtration

filtration tesarea (Outote

testwork inboth batch a

between 55 –

rk was condul in the undengs filtration,

or all direct n composites

nts were unde

H

Pulp Density

% Solids(w/w)

.6

40

50

60

65

.6

40

50

60

65

.6

40

50

60

65

twork was cec and FLSm

ncluded floccand dynamic– 60% solids

ucted to deteerground min and will pro

cyanidations and variab

ertaken at 40

4.2 7.4

Low Low

Low Low

2931 1780

5929 3033

Low Low

Low Low

2629 1506

6810 4457

Low Low

Low 28

3082 1829

7667 5553

completed atmidth).

culant screec testing meths with the add

ermine the filne. The resuoduce a filte

n tests combility sample

0, 50, 60 and

Viscosity @

13.0 21.

Low Low

29 38

0 1068 68

3 2093 631

Low Low

39 42

6 653 63

7 3056 206

Low Low

37 41

9 1099 704

3 3691 354

t two separa

ening and fhods. The redition of 50 g

tration charaults indicated

er cake of 73

pleted at thes) was 96.4

d 65% (w/w)

Shear Rate (se(cP)

.8 38.9 67

w Low 5

8 53 6

1 410 25

13 791 49

w Low 3

2 57 6

3 412 26

62 1307 85

w Low 3

1 54 6

4 431 26

46 1351 83

ate consulta

feed dilutionesults indicatg/t flocculant.

acteristics of d that stand3% solids at

he optimum 4% and 91.0

pulp density

ec-1 )

7.1 118.7 2

53 48

68 74

53 159

95 298

32 41

60 66

65 188

53 541

36 47

62 66

68 173

37 509

ant companie

n tests andte that the or.

the tailings fard disk filtet a filtration

66

leach 0% for

y.

209.9

59

80

142

188

60

82

173

343

57

78

157

312

es that

d were es can

for use ers are rate of

PERevDat

13

13

13


3.4.7 Cyan

The the ame

A sinprovtestw

3.5 Meta

The optimfinanrepre0.4%

3.6 Con

The cam

The leachback

1

nide Destru

INCO SO2/aplant tailingsnable to cya

ngle bulk leaide samples

work include:

An SO2 doCNWAD in t

A single sachieve th

allurgical Re

metallurgicamum leach cncial analysiesent an ave

% for gold and

clusions

following opaign:

Grind size

100 g/t of

Increased

Initial free

96 hours o

Pulp pH of

leached oreh solution. Tkfill for the m

ction

air oxidation s slurry. Thenide detoxifi

ach under os for cyanide:

osage of 3.0the treated e

stage of detohe required d

ecoveries

al recoveriesconditions. Tis were 95.erage acrosd silver resp

ptimum leac

of 80% pass

lead nitrate a

pulp dissolv

cyanide con

of leach resid

f 11.

can be thickThe thickenedine.

process wae results indcation.

ptimized cone detoxificatio

0 g/g SO2/CNeffluent for ea

oxification stetoxification

s were estimThe recoveri6% and 90s the complectively to ac

ching condit

sing (P80) 50

addition;

ved oxygen c

ncentration in

dence time; a

kened to allod residue ca

s used to tedicated that

nditions wason work. Ob

NWAD appearach of the sa

tage with 60requirement

mated basedes used for

0.6% for gollete Angela ccount for sc

tions were s

0 micron;

concentration

n the leach so

and

ow solid liqun be filtered

est amenabilithe leach t

conducted bservations f

red necessarmples; and

0 minutes rets.

d on all tesboth reserv

ld and silveVein and in

cale-up and s

selected bas

n through oxy

olution of 1,5

id separationusing standa

ity of cyanidtailings from

on each domfrom the cya

ry to obtain

esidence time

sts completeve estimationer respectivenclude reducsolution losse

sed on the

ygen spargin

500 ppm;

n and the recard disk filte

e detoxificatall ore type

main compoanide detoxif

the target 25

e was suffic

ed at the sens and the ely. These ctions of 0.8%es.

Ammtec te

ng;

covery of prers to provide

67

tion for es are

osite to fication

5 mg/L

cient to

elected project results % and

estwork

egnant e paste

PERevDat

14

14

14

14


4 Min

4.1 Mine

4.1.1 Vein

Figureso

Figuthe cby fa

4.1.2 Data

Assa

All dThes

1

neral Reso

eral Resourc

ns included

re 14.1 showurce estimat

The main A

The Angel

Four smal

The Lourdsouth of th

re 14.2 showcontained mear, is the Ang

a

ay Database

drill holes witse include:

Holes QU-area. Of thincluded iprovide asdefinition othe wirefra

Holes INMIMC and nmore of estimationaffect the veins, areINMA-120

The ANG1these, theaffect grad019, ANGMAR11-01resource vgeometry o

ource Estim

ce Estimate

in mineral r

ws the horiztes:

Angela Vein

a Splay, a sp

l branches fr

des and Marhe main vein

ws the relativetal in the drgela Vein, wh

e

th assay dat

-01 through hese, only Qn these resssay data thof the geomeames used to

MA-01 througnow continuethe resourc

n. The INMAresource est: INMA-08, , INMA-153,

11, ASW11, e following hde estimation

G-022, ANG12. The remveins and affof the veins.

mate

es

resource est

zontal footpr

;

plit from the

rom the Ange

rtha veins, t.

ve contributiorill hole assayhich accounts

ta available

QU-31, the eU-04, QU-05ource estimhat affect thetry of the vo model each

gh INMA-214ed by Hochsce veins anA holes that timation onlyINMA-39 thrINMA-157,

JIM11 and Mholes intersen: ANG11-00-026 throug

maining holesffect resource

timates

ints of the e

main vein, th

ela Vein, refe

two small an

on of these vys that fall ws for more th

by 30 June

early group o5, QU-07, QUates. Thesehe grade esveins, their lah of the veins

4, the main schild. Of thed therefore do not inter

y by forcing rough INMA-INMA-169 an

MAR11 serieect one or m01 through A

gh ANG-028s drilled in te estimation

eight veins in

hat occurs at

erred to as “R

nd unconnec

eins to total within these vhan 80% of th

e 2011 were

of holes drilleU-24, QU-25e are, therefstimation. Thack of vein ins;

series of drilse, the vast

provide asrsect any ofclosure on t-42, INMA-4nd INMA-208

s of holes drmore of the ANG11-005,8, MAR11-00the past yea only by forc

ncluded in th

t depth to the

R1” through

cted hanging

metal contenveins. The mhe metal con

used for re

ed by Hochs5 and QU-31 fore, the onlhe other QUntersections

ll holes begumajority (19

ssay data tf the resourche interprete5 through IN8; and

rilled in 2011resource ve ANG11-01601 through ar do not incing closure

he feasibility

e northeast;

“R4”; and

gwall veins t

nt, as measumost importanntent.

esource estim

schild in the intersect they early hole

U holes affeforcing clos

un by Ventu98) intersect that affects ce veins, aned geometryNMA-51, INM

by Hochscheins, and the6, ANG-018,

MAR11-010tersect any on the inter

68

y study

that lie

ured by nt vein,

mation.

project e veins es that ect the ure on

ra and one or grade

nd that y of the MA-63,

hild. Of erefore ANG-0, and of the

rpreted

PERevDat


Figurlater f

Figur

1

re 14.1 - Horizofigures

re 14.2 - Relativ

ontal footprint o

ve contribution

of the eight do

n of each doma

mains used fo

ain to total met

r resource esti

tal content in th

imation, with s

he drill hole as

section lines us

ssays

69

sed in

PERevDat


Nonesurfageom

The intervreso

Topo

Infordevedata used

The The aeriaASWthat their fromdevesurvetopostudy

Dens

The GoldEachPrinc

Dry b

with used

51 osamsurroa sto

The dens(> 5equivsmasigniall ei

1

e of the assace mappingmetry of the r

assay datarvals with duurce estimat

ography

rmation on teloped from

used as cond for local su

consistencyvast majority

al topographW11-002, one

do intersectr collars are aerial topo

elopment of eyed elevatgraphic and y.

sity

density inford in 2008 in h sample waciple, the dry

bulk density

the weight od to seal the

f the 100 saples was 2.5ounding the mockwork alter

51 samplessity to decre00 g/t) had valent gradell, only 1-2%ificant, the feight of the re

ays from chg of the expresource vei

base was uplicate assation.

the topograpa 1:5,000 aentrol points forveying with

y between thy of hole colhy. The mae of the hole resource vewithin ±2 mography. Mthe digital eions of newsurvey cont

rmation usedwhich densits dried, weig

y bulk density

= Dry weigh

of the sealedsample befo

mples in this51 t/m3. The mineralized vration in and

of mineralizase with incan average

es (< 50 g/t) %, and with easibility studesource veins

ip samples fposed veins ns.

recompiled ays, only th

phy in the perial topograor this survethe PSAD56

e aerial topollars (92%) aaximum disces that doeseins, and thaof the elevaost of the

elevation mow hole collartrol remains

d for the resty was calcughed in air, sy of the mate

t in air ÷ (Dry

d sample beiore it was imm

s study wereaverage de

vein was 2.5esitic materia

zed material creasing grade density of

had an avertoo few samdy resource s.

from surfacewas used,

by Hochschhe first assa

roject area aphy survey ey had to be 6 datum used

ography modare within ±1crepancy of

s not intersecat provide gration provide

hole collarsdel in 2010;rs and the excellent, an

source estimaulated for 10sealed in waxerial is:

y weight in a

ing adjusted mersed in wa

from the Annsity of the

54 t/m3. The aal was 2.44 t

suggest thade. The sam2.49 t/m3, w

rage densitymples to coestimates u

e outcrops whowever, in

hild from theay value was

is sourced fcompleted inshifted by 2-d for the aeri

del and the m of the gro

f 2.7 m wact any of therade data usd by the digs that are ; so the excdigital elevand suitable f

ates comes 0 samples ox and weighe

ir – Weight o

to take into ater.

ngela Vein; th29 samples average dent/m3.

at there maymples with hiwhile the sa

y of 2.53 t/m³nfirm whethese a single

were used forn the interpr

e original las retained f

from a digitan 2010 by IM-3 m to alignial topograph

drill hole colound elevatios observed e resource vsed for gradeital elevationnow availa

cellent agreeation model for the purpo

from a studyof drill core fred in water.

of sealed sam

account the

he average dof unalteredsity of the 20

y be a very sighest silver-amples with ³. With theseer or not thdensity cons

r grade estimretation of t

ab certificatefor the purp

al elevation MZ. Ground the vertical

hy.

llars was chon provided

at the coveins. Of thee estimationn model deveble post-da

ement betweconfirms th

oses of a fea

y done by Vrom six lithoUsing Archim

mple in wate

e weight of th

density of thed andesite m0 samples sh

slight tenden-equivalent gthe lowest

e differencesey are statis

stant, 2.51 t/

70

mation; the 3D

es. For ose of

model survey datum

ecked. by the

ollar of e holes , all of eloped te the en the

hat the asibility

Ventura ologies. medes’

r)

he wax

ese 51 material howing

ncy for grades silver-

s being stically m3, for

PERevDat

14


4.1.3 Geo

The Figuabou

FigurFigurblack

FigurFigurblack

1

logical Dom

eight resoures 14.3 thrut 70°. In som

re 14.3 - Verticare 14.1) along wk lines


mains

rce veins shrough 14.5. Ame places, th

al cross-sectiowith the drill ho


hown in mapAll of the ve

he dip is as lo

on, facing northoles within ±50


p view in Fieins dip to tow as 45°; in

heast, showing0m of the sectio


gure 14.1 athe southeasn other place

g the interpreteon line, with ve


are shown inst, with the es, the veins

ed vein geometein intersection


n cross-sectiaverage dipare vertical.

tries on A-A' (sns shown as th

tries on B-B' (sns shown as th

71

ions in being

see hicker

see hicker

PERevDat


FigurFigurblack

Wirethe vhonosurfawirefexacwirefvolum

The loggthe g70 g/geolooverzoneposs

The consmineintervleast

1


eframing of thvein in the dror these contace outcropsframes werectly with the frames meeme within ea

hangingwaling. The goldgeologically-/t, with silveogical doma

restimation oes. With masible for block

choice of straint to aeralization. Inrvals were int 0.8 m.


he domains rill holes, andtrol points, th

s, and that cl edited to enwireframe fot. The wiref

ach wireframe

l and footwad and silver logged vein

er-equivalent ains was choof resourcesarginal and sk grade estim

hangingwall avoid runninn drill holes ncluded, eith


was done bd then usinghat follow theose before t

nsure that theor the main Aframes weree does not in

all interceptsassay valuewere incorpodefined as

osen to be lo that occurssub-econommates to be b

and footwang wireframwhere the ter on the ha


y identifying the Leapfroe predominathey reach de wireframesAngela Veine also clippenclude any a

s of the veines were thenorated in theAg + 70*Au

ower than thes when breaic material below the cu

all interceptsmes throughtrue width ofangingwall o


the hangingog software toant strike andrill holes thats for the bran, with no gaed exactly tir.

ns were init checked an

e vein if theyu. This grade economic ak-even cutoincluded at toff later use

s also incluh thin, sinf the vein w

or footwall, to


gwall and fooo create wired dip, that hot do not intenches and thps or overlao the topog

ially identifiend sample iny had a silvee threshold break-even

offs are usethe edges

ed for reportin

uded a miningle intervawas less thano bring the t

tries on C-C' (sns shown as th

otwall interceeframed solidonor the locarsect the vei

he splay fit tops where ad

graphy so th

ed from geotervals adjacr-equivalent for expandicutoff to avo

ed to define of the veinsng purposes

imum-miningals of highn 0.8 m, addtrue width up

72

see hicker

epts of ds that

ation of n. The

ogether djacent hat the

ological cent to above ng the oid the grade

s, it is .

g-width -grade ditional p to at

PERevDat

14


4.1.4 Stat

Figugeolo14.8

The of algold accoof th

The apprgradpred

The than relat

Figur

1

istical Analy

re 14.6 shoogical domashows how

silver in the l eight domaaccounts fo

ounting for the metal valu

Angela Sproximately 50e of the maiominantly a

branches ofthe main An

ive value of g

re 14.6 - Side-b

ysis of Gold

ows the sideains. Figure the silver-go

Angela Veinains. With theor more thanhe vast majore in the reso

lay has the0% higher gon Angela Vesilver vein, w

ff the Angelangela Vein. Wgold to silver

by-side boxplot

d and Silver

e-by-side box14.7 shows

old ratio com

runs, on avee value of a half of the rity of the tonource block m

e highest avold grade tha

ein. With an Awith more tha

a Vein, R1 thWith these br, these veins

ts of the distrib

Assays

xplots of thethe corresp

pares in the

erage, aboutgram of goldin situ valuennage and mmodel (about

verage gold an the AngeAg:Au ratio oan two-thirds

hrough R4, granches havs have abou

bution of gold a

e distributionponding comeight veins.

t 50x the gold being wort of the Ange

metal contentt 60%) is due

grade and ela Vein, andof approximas of its metal

enerally havving a Ag:Au t half their va

assays in the e

n of gold asmparison for

d grade, the h roughly 70ela Vein. Witt (see Figure e to gold.

silver gradd approximatately 150:1, t

value in silve

ve lower goldratio that ap

alue in silver

eight geologica

ssays in thesilver; and

lowest Ag:A0x a gram ofth the Angel14.2), the m

e of all doely twice thehe Angela Ser.

d and silver gpproaches thr and half in g

al domains

73

e eight Figure

Au ratio f silver, a Vein

majority

mains, e silver

Splay is

grades he 70:1 gold.

PERevDat


Figur

The valuesilve

Withtreatvein

The varia2, loFortuvast smeathe (discinflue

1

re 14.7 - Side-b

Lourdes Vee in silver. T

er grade, and

clear chanted as a sepuse only the

coefficients ation are in thocal grade eunately, the

majority of aring of extreextreme gra

cussed in thence resourc

by-side boxplot

ein has the loThe Martha V with a very

ges in the sparate domae assay data

of variation ahe small braestimates wiproblem of ethe metal:

eme values iades to ver

he following ce estimates

ts of the distrib

owest gold aVein is similasimilar Ag:A

statistical chin for the pufrom that sa

are generallynches from till occasionaerratic extremthe main A

is well controry narrow bsection), en

.

bution of silver

and silver gar to the mau ratio.

haracteristicsurposes of game vein.

y between 2.the Angela V

ally be stronmes is least

Angela Vein olled by the ubands. Thisnsures that

r assays in the

rades, with tain Angela V

s of the eighgrade estima

0 and 2.5; thVein. With thngly influenct problematic

and the Anuse of tight w, combined erratic high

eight geologic

the vast majVein, slightly

ht veins, eaation; grade e

he only very e coefficient

ced by extrec in the domngela Splaywireframes th

with the c-grade assa

cal domains

ajority (90%) higher in go

ch of the veestimates fo

high coefficiet of variation eme assay vains that ca. In all veinhat spatially rcapping of gays do not

74

of the old and

eins is or each

ents of above

values. rry the

ns, the restrict grades unduly

PERevDat


Figur

Figur

1

re 14.8 - Side-b

re 14.9 - Silver-

by-side boxplot

-gold scatterplo

ts of the distrib

ots in the Ange

bution of the A

ela Vein and th

Ag:Au ratio in th

he Angela Spla

he eight geolog

y

gical domains

75

PERevDat

14


Althosilve(witha veAg:Aminemetavario

4.1.5 Grad

In eaCumthe utakesuggthey

FiguThe 100 breafollowbeing

Tabl

Figurlevels

1

ough the Ag:er and gold wh the lowest sry high silver

Au ratios iseralization arals have simogram.

de Capping

ach domain, mulative probupper tail of tn into acco

gested differereflected the

re 14.10 shocumulative pand 200 g/t;

ak up betweewing the samg approxima

e 14.1 show

re 14.10 - Cumus

:Au ratio chawithin each dosilver-gold rar-gold ratio).Ts consistentre also respomilar pattern

the gold anability plots the grade disunt when sent possibilite average ra

ows the detaprobability pl the cumulaten 1,500 an

me linear trenately 50:1, the

ws the cappin

ulative probabi

anges from domain. Figuratio), and theThe strong st with the onsible for sins of spatia

nd silver assawere used tstribution staetting the cies for the catio seen in th

ails of the seot of gold shtive probabilnd 5,000 g/t.nd as showne silver cap w

g levels used

ility plots of go

domain to dore 14.9 showe other from silver-gold co

view that lver mineralial continuity

ays were cato select the arts to break capping leveapping valuehat domain.

election of thehows that theity plot of sil. With the sn by the rest was set at 5,

d in each of

old and silver a

main, there ws two examp

the Angela Sorrelation in tgeological zation. This,

y that can b

apped at levecapping levup. The Ag:A

els; when the, the Au and

e capping lee high-grade ver shows th

silver values of the distrib000 g/t.

the domains

assays in the A

is a strong cples, one froSplay (one otwo domainsevents resp

, in turn, sugbe modeled

els customizvels close to Au ratio for ee cumulativd Ag caps w

evels for the tail starts to

hat the high-between 1,

bution, and w

s.

Angela Vein use

correlation beom the Angelof the domains with very diponsible for

ggests, that td using the

zed to that dothe point at

each vein wae probabilityere chosen s

main Angela break up be-grade tail st,500 and 5,0with the Ag:A

ed to select ca

76

etween la Vein ns with ifferent r gold he two same

omain. t which as also y plots so that

a Vein. etween tarts to 000 g/t

Au ratio

apping

PERevDat

14


Table

4.1.6 Vario

Sinctheir both

The gram

Figuvariovein and

1

e 14.1 - Capping

Angela

Angela S

Ange

Ange

Ange

Ange

Lourdes

Martha

ograms

e gold and sr patterns of

metals. Var

factor of 70m of gold, in s

re 14.11 shoogram mode

system, thedown-dip, th

g levels used f

a Vein

Splay

ela R1

ela R2

ela R3

ela R3

s Vein

a Vein

silver are verspatial varia

iogram analy

0 reflects thesitu, has roug

ows the expels for interpo range of co

he range of c

for gold and si

Au cap (g/t)

100

25

50

10

10

10

5

25

ry well correlation will be ysis was ther

AgE

e combined eghly the sam

erimental vaolation of botorrelation is 1orrelation is

lver assays in

A

lated within tvery similar

refore done o

Eq = Ag + 70

effect of theme value as 7

ariograms forth gold and 10 m; in the 110 m. The

each domain

Ag cap (g7t)

5,000

1,250

1,000

500

500

500

500

1,000

the mineralizr, and one von silver-equ

0 · Au

e metal price70 grams of s

r silver-equivsilver. In theplane of the nugget effec

zed domainsariogram mo

uivalent, defin

es and the msilver, in situ

valent, alonge direction pe

vein systemct is 35% of t

(see Figureodel will suffned as:

metal recove.

with the sperpendicular

m, both alonghe sill.

77

e 14.9), fice for

eries: a

herical r to the g strike

PERevDat

14


Figur

4.1.7 Bloc

As sthe 8345N39.block300 eleva

1

re 14.11 - Vario

ck Model Co

hown in Figunortheasterl

5603.0N; its .96°E). In theks that are 1rows of blocation of 4 05

ogram model (d

onfiguration

ure 14.12, thy strike of southeaste

e northeaste0 m long. In

cks that are 20 m to an ele

dotted line) and

he resource bthe veins.

ern edge runerly direction,

the northwe2 m wide. In evation of 4 6

d experimental

block model The corne

ns at an an, along the st

esterly directithe vertical d690 m.

variogram (so

has been orr of the blngle of 50.0trike of the von, across thdirection, the

olid line) of silv

iented so thaock model

04° from eaveins, there ahe strike of tere are 64 10

ver-equivalent

at it runs paris at 6887st (an azim

are 240 columhe veins, the0 m levels, fr

78

rallel to 755.6E, muth of

mns of ere are rom an

PERevDat

14


Figur

With2m w

4.1.8 Ordi

Estim

Withdomwith

1

re 14.12 - Reso

the Angela wide blocks f

inary Krigin

mation of To

in each 10ains was esthe rectangu

urce block mo

Vein having from the han

g

onnage

×10×2 m blostimated by cular block an

odel configurat

an average gingwall side

ock, the micalculating thd multiplying

ion

width of 4-6e of the Ange

neralized tohe volume og this by the a

6 m, the resoela Vein to th

onnage contof the interseassumed dry

urce model whe footwall si

ributed by eection of the y bulk density

will include side.

each of thedomain wire

y of 2.51 t/m

79

several

e eight eframe

m3.

PERevDat

14


The eight

Estim

In angradthat

The rangbounwirefneigplane

An olike searestim

For equa

The perfomultvaria

Withwerecalcudom

4.1.9 Chec

Softw

All oThe systeinde±5%blockwaysassa

Tonn

Tonnof Mrespcont

Figualong

1

estimated ret mineralized

mation of G

ny block thaes for that dfall within tha

ordinary krie of the va

ndaries, the dframes, andhborhood like of the vein

octant searchslices of a p

rch neighbormation.

the purposeations, the 10

estimation ormed. Onciplied by the

able sample

in each 10×e combined ulating the toains that con

cks of Block

ware

of the resourtonnage an

ems: Micrompendent calc of each othks classifieds the searchays.

nage Check

nage estimaticromine® anect the domaiguous wirefr

re 14.13 is g with the o

esource tonnd domains.

Grade

at has non-zdomain’s tonat domain.

ging search ariogram alodistance to n not by the

ke a “pancak, and a thick

h was used tpie, looking rhood. Withi

es of the a0×10×2 m bl

of grade die the ordin

e assay lenglength is cor

10×2 m blocinto a gradeonnage-weigntributes tonn

k Model Est

rce estimatend grade esmine® and culations we

her for the blod as inferredh strategy is

ks

tes were chend MineSighain boundarirames, i.e. b

a typical crooutlines of th

nage in each

ero estimatennage were c

neighborhoong the veinearby sampe 110 m radke” that is pakness equal t

to limit the eperpendicul

n each octa

average covaocks were ap

irectly used nary kriging gth, and therectly accoun

ck , the grade estimate foghted averagnage to that

timates

es were perfostimates wer

MineSight®

ere within ±1ocks classifi

d). The differs implemente

ecked visualht® to ensurees, and alsoetween the A

oss-section she domain w

h block is th

es of the toncalculated us

od was a sn). Because

ples in the didius of the sarallel to the to the full wid

ffects of samar to the ve

ant, only the

ariance calcpproximated

the cappedweights ha

n renormaliznted for in th

de estimates or the minege of the grablock.

ormed in-hore checked

®. Globally, % of each oed as measurences betwed, and to t

ly, domain be that the indo to check thaAngela Vein

showing the wireframes. T

he sum of th

nnage for ansing ordinary

phere with ae the domairection acrospherical sevein, with a

dth of the vei

mple clusterinein at the 11e closest fo

culations ne by a 4×4×2

d drill hole ad been cazed to sum he grade esti

for each of ralized tonnaade estimate

ouse softwarusing two the tonnag

other, and thured and ind

ween the systhe use of c

by domain, uividual domaat there wereand its bran

estimated tThe tonnage

he tonnages

ny domain, ty kriging of t

a search radin wireframess the vein i

earch. This mcircular radin.

ng, with the 10 m circulaur samples

eded by thgrid.

assays; nolculated, theto one. Thismation.

the eight miage within tes for each

e developeddifferent com

ge estimatese grade esti

dicated (and stems are dcomposites

using the 3Dain tonnage ee no gaps orches and sp

otal tonnagee estimates

within each

the gold andthe nearby a

dius of 110 es serve ass controlled makes the sius of 110 m

octants confr projection were retain

e ordinary

compositinese weightss ensures th

ineralized dohe entire bloof the mine

d by FSS Cammercial sos from the imates were within ±7% ue to the diversus the

D viewing capestimates cor overlaps belays.

e from all doin this figure

80

of the

d silver assays

m (the s hard by the search

m in the

figured of the

ned for

kriging

g was s were hat the

omains ock by ralized

anada. oftware

three within for the ifferent use of

pability orrectly etween

omains e have

PERevDat


beent) witveins

Figur

Grad

GradMicrocons

FigublockgeoloLourdata higheexclu

Althobeenonly crossfact t

1

n color-codedthin one or ms.

re 14.13 - Chec

de Checks

de estimatesomine® and

sistent with th

re 14.14 is ak along with ogical domardes Vein (in

available foer-grade assuded becaus

ough the crosn spread beyto the propo

s-section, Fithat, in most

d using a gramore of the v

k of estimates

s were checkMineSight®

he nearby dr

a typical crothe original

ains have bthe middle or estimation says in the Ase they belon

ss-section inyond their veortion of eacigure 14.13, t of the block

ay scale, witveins and so

of volume pro

ked visually, to ensure th

rill hole data.

oss-section sdrill hole dateen used aof the cross-sin this vein a

Angela Vein ng to a differe

n Figure 14.1ein boundari

ch block that the volume

ks, the tonnag

h solid blackolid white blo

oportions

domain by dhat the indiv

showing the ta on the samas hard bousection in Figare the low-gto the north ent domain.

4 may creaties, it shouldfalls within

proportionsge of vein wi

k blocks haviocks having

domain, usinvidual gold a

estimated sime section. T

undaries. Thgure 14.14) agrade assaysare within th

e an initial imd be noted tthe wirefram

s within eachthin the bloc

ng 100% of no tonnage

ng the 3D viand silver gr

ilver-equivaleThis example low-gradeare due to ths in the Lourhe 110m sea

mpression ththat the grad

mes. As showh block correck is less than

their tonnagin any of the

ewing capabrade estimat

ent grade foe confirms th

e estimates he fact that thrdes Vein itsearch radius b

at the gradede estimateswn on the prectly represen 100%.

81

e (502 e eight

bility of tes are

or each hat the in the

he only elf; the but are

s have s apply revious ent the

PERevDat


Figur

Gradthe lthe bblocklargeestim

Therthat assacalcucont

1

re 14.14 - Chec

des were alsength-weighblock model.k estimates er volumes omates.

re is a slight the vein sys

ays done alulations donribute to the

k of silver-equ

o checked bted average . Figure 14.1show less t

of material; b

shift in the sstem is not vong the ve

ne for the bestimate of b

ivalent grade e

by doing “swaof the origin

15 shows thetotal variabil

but the peaks

swath plot dovertical, but rtical rows block estimablocks with h

estimates

ath plots” thanal drill hole dese swath plity than the s and trough

one along thdips steeplyof the mod

ates since dhigher row nu

at compare tdata along thlots comparioriginal ass

hs in the drill

he rows of thy to the southdel will be sdeep assaysumbers.

the average he columns, isons for silvsay data sinhole data ar

e model; thisheast. Calcuslightly offses with low

grade estimarows and le

ver-equivalennce they repre picked up

s is due to thulations of avet from the row numbe

82

ates to vels of nt. The present p in the

he fact verage

same ers will

PERevDat


Figur

1

re 14.15 - Swathh plots compa

ring block estimates to originnal drill hole daata

83

PERevDat

14


4.1.10 Reso

Minereso

A Mequalestimeconthe dinforpits, grad

An Iqualconfto subasetechspac

An Inqualreaslimiteas o

Clasfirst crite

1.

2.

3.

4.

The well-withiThe samrefle

Figuaver

1

ource Class

eral Resourceurce classific

easured Minity, densities

mated with nomic paramdeposit. Thermation gathe

workings ane continuity.

ndicated Minity, densitieidence sufficupport mine ped on detaileniques from

ced closely e

nferred Mineity can be onably assued informatioutcrops, tren

ssification costep, each ria:

Blocks witvariogram

Blocks thawith sampassigned a

Blocks thavariogram

Regardlesassigned aLourdes asouthwestAngela Spveins, the

first criterion-surrounded n the range third criteriople. The foucts the highe

re 14.16 shraged across

sification

es were clascation confor

neral Resours, shape, andconfidence

meters, to supe estimate isered throughnd drill holes

neral Resours, shape a

cient to allowplanning and

ed and reliablocations s

enough for ge

eral Resourceestimated omed, but noton and sampnches, pits, w

mpliant with block was a

thin 25 m ofrange) in at

at were not aples closer ta value of 2.

at were not ) of a drill ho

ss of the pra classificati

and Martha. Tt, which creaplay also beclassification

n gives a valuby data. Theof the vario

on gives a vaurth criterion er degree of

ows these is the width o

ssified accordrm to the foll

rce is that pad physical csufficient to

pport products based on dh appropriates that are s

rce is that pand physicalw the approprd evaluation le exploratiouch as outceological and

e is that parton the basit verified, gepling gathere

workings and

these definiassigned an

f a drill holeleast four oc

assigned a 1than 110 m

assigned a ole sample w

revious clasion code of The Angela

ates less uncing better drn codes in th

ue of 1 to bloe second givogram, but thalue of 3 to ensures thauncertainty i

nteger codeof the vein. In

ding to the Cowing termin

art of a Mineharacteristic

o allow the tion planningdetailed and e techniques paced close

art of a Minel characterisriate applicatof the econo

on and testingcrops, trenchd grade conti

t of a Mineras of geologological and ed through a drill holes.

itions was acinteger cod

e sample, actants, were

1, but that w(the variogr

1 or 2, but ere assigned

sification, b3. These inR1 branch

certainty in thrilled, with a

his vein are b

ocks that areves an intermhat are slighall blocks th

at the minor n their grade

es on a longn a broad se

CIM Definitionnology and d

eral Resourcs are so weappropriate

g and evaluareliable expfrom locatio

ely enough t

eral Resourcstics can btion of technomic viability g information

hes, pits, woinuity to be r

al Resource fgical evidenc

grade continappropriate te

chieved usinde, from one

and with samassigned a v

were within 4ram range)

that were wd a value of 3

locks in spaclude Angelis much betthe geometry almost twice based on pro

well-informemediate valuehtly less wellhat are corre

veins are ge and tonnag

gitudinal sectense, the 1s

n Standards,definitions:

ce for which ll established

applicationtion of the ec

ploration, samons such as oo confirm bo

ce for which be estimatedical and ecoof the depos

n gathered thorkings and deasonably a

for which quace and liminuity. The esechniques fr

ng a two-stepe to three, u

mples closevalue of 1.

0m of a drillin at least f

within 110 m3.

arsely-drilleda R2, Angeter drilled, aof this vein.the drilling ximity to nea

ed by nearbye to blocks t-informed th

elated with agiven a classge estimates

tion of the mcorrespond

, which requi

quantity, grd that they c of technicaconomic viabmpling and toutcrops, treoth geologic

quantity, grd with a lenomic paramsit. The estimhrough approdrill holes thssumed.

antity and grted samplin

stimate is basrom locations

p procedure.using the fol

r than 110 m

l hole samplfour octants

(the range

d minor veinla R3, Angend outcrops . Similarly, wof the other

arby data.

y data, and ththat have dahan the first t least one n

sification cod.

main Angelato “measure

84

ire that

ade or can be al and bility of testing nches,

cal and

rade or evel of meters, mate is opriate hat are

rade or ng and sed on s such

In the llowing

m (the

e, and , were

of the

ns are ela R4,

to the with the r minor

hat are ata well

group. nearby de that

a Vein, d”, the

PERevDat


2s toblockcrea

Figur

In ortermsmaclassa sinsame

Figur

1

o “indicated” k-by-block bting small isl

re 14.16 - Long

rder to provid mine plannll one-blocksification codngle 200 m3 e volume as

re 14.17 - Long

and the 3s tbasis, howevlands of 1s s

itudinal sectio

de a classificing, the initia

k islands ofde. With this

block; the fquarterly pro

itudinal sectio

to “inferred”.ver, there aresurrounded b

n showing the

cation that pal codes shof one classspatial smoofinal classificoduction plan

n showing fina

As often oce locations w

by 3s, and vic

first step of cl

pertains to thown in Figuresification coothing, the clcation pertainning increm

al classification

ccurs with nuwhere the cce versa.

lassification pr

e tonnages e 14.16 were

ode that arelassification ns to volum

ments.

n for the Angel

umerical criteclassification

rocedure for th

involved in me spatially ave surroundepertains to v

mes that are

la Vein

eria evaluatechanges ab

he Angela Vein

mid-term andveraged to reed by a divolumes large

approximate

85

ed on a bruptly,

d long-emove ifferent er than ely the

PERevDat

14

14


“Mea“indichaveof th

Mostoutcrougpart 50 x Resothe vdrill h

4.1.11 Repo

MineprodTablprod

Table

1Inclu2Inclu

Usin110.$ 0.5

The

The costsgold-

4.1.12 Sum

Tabldomto a beenreso

1

asured” bloccated” block

e a value of 2e Angela Ve

t of the Mearops and whhly 25 m spof the Ange50 m spaci

ources in thevein at roughhole spacing

orting Cutof

eral resourceuced by the e 14.2 lists uced by a gr

e 14.2 - Parame

Reco

Offsite c

des metallurgic

des transportat

g the param77 g/t Ag a g5188 of reven

total revenue

reporting cuts. This is equ-equivalent d

mmary of Cla

es 14.3 throains, using a93.1 g/t Ag

n rounded tource estimat

ks are thoses are those t2.5 or more.

ein.

asured Resouhere it has acing down ela Vein, whing that is e central arehly 50 m spag is greater th

ff

es for the Ingold and silvthe econom

ram of in situ

eters used for t

Gold

Price 1,100

overy1 95.46

costs2 24.11

cal and commerc

ion, treatment, r

meters in Tagram of in sinue.

e of a block,

To

toff is a Totauivalent to adefined as fo

AgEq = A

assified Min

ough 14.10 a cutoff of $4Eq cutoff, ano reflect thetes is 11 Jan

e that have athat have a vFigure 14.1

urces lie in tbeen drilled dip. A small

here recent typical outs

ea, where thacing down dhan 50m, the

nmaculada pver is sufficiemic and tecu metal.

the calculation

0 $/g

6%

1 US$/kg

cial losses.

refining, umpire

able 14.2, attu gold prod

in $/t, is:

otal Revenue

al Revenue o cutoff of 93

ollows:

Ag + 63.2 ∗ A

neral Resour

summarize t48.30 /t on thnd also to a

e precision ouary, 2012.

a value of 1.value of 2.5 o7 shows a lo

the southweson 50 m se

l amount of drilling has

side the soere is drilling

dip. In the reere are Inferr

project are rent to cover tchnical param

of the revenue

e analyses, supe

t an averaguces $ 32.79

e = 32.79 ∗ A

of $48.30 /t, t.1 g/t AgEq o

Au and A

rces

the estimatehe estimated

a 1.47 g/t Auof the estim

.5 or less aftor less; and ongitudinal s

stern portionections, withthe Measurebrought the

outhwestern g on 50 m smainder of t

red Resource

reported at athe costs of meters requ

e produced by

Silver

18 $/g

90.37%

--

ervision of shipm

e diluted he9 of revenue

Au + 0.5188 ∗

the sum of thor 1.47 g/t A

AuEq = Au +

ed mineral rd revenue ofuEq cutoff. Iates. The e

fter the spati“inferred” bloection of the

ns of the Angh holes that ed Resourcee drill hole s

region. Thesections, withthe deposit, wes.

a cutoff at wmining and pired to calc

y a gram of met

ments

ead grade oe and a gram

∗ Ag

he mining, prAuEq, with sil

+ Ag 63.2

esources in f each block.n these tablffective date

al smoothingocks are those final classif

gela Vein, wpierce the v

e lies in the cspacing beloere are Indh holes that where the av

which the reprocessing thculate the re

tal in situ

of 3.15 g/t Am of silver pro

rocessing anver-equivale

each of the. This is eques, numbers

e of these m

86

g step; se that fication

where it vein at central ow the dicated pierce

verage

evenue he ore. evenue

Au and oduces

d G&A ent and

e eight ivalent s have mineral

PERevDat


Theseachcode

Table2012

CLAS

Meas

TableJanua

CL

Meas

TableJanua

CL

Meas

1

se summarieh vein to eace was assign

e 14.3 - Estimat

SSIFICATION

Measured

Indicated

sured+Indica

Inferred

e 14.4 - Estimatary 2012

LASSIFICATION

Measured

Indicated

sured+Indica

Inferred

e 14.5 Estimateary 2012

LASSIFICATION

Measured

Indicated

sured+Indica

Inferred

es are basedch block. Fored to the vei

ted Mineral Res

TONN

(Mt)

3.

3.

ted 6.

3.

ted Mineral Res

N

TON

(M

0.

0.

ated 0.

0.

ed Mineral Reso

N

TON

(M

0

0

ated 0

0

d on the entirr blocks with in that contri

sources for the

GR

NAGE Au

(g/t

18 4.1

55 4.1

73 4.1

17 4.4

sources for the

NAGE

Mt)

A

(g

.00 –

.07 4.2

.07 4.2

.54 4.4

ources for the

NAGE

Mt)

A

(g

.11 2.0

.16 2.7

.27 2.4

.02 1.9

re block gradcontribution

buted the gre

e Angela Vein,

RADE

t)

Ag

(g/t)

Au

(g/t

17 129 6.0

11 161 6.4

14 146 6.2

49 164 6.8

e Angela Splay

GRADE

Au

/t)

Ag

(g/t)

Au

(g

– – –

26 216 7.

26 216 7.

45 207 7.

Angela R1 Bra

GRADE

Au

g/t)

Ag

(g/t)

Au

(g

09 76 3.

70 91 3.

45 85 3.

90 82 3.

de, and not ons from two oeatest tonna

at a revenue c

Eq

t)

AgEq

(g/t)

02 421

40 448

22 435

84 479

y, at a revenue

E

uEq

g/t)

AgEq

(g/t)

– –

35 514

.35 514

41 519

anch, at a reven

E

uEq

g/t)

AgEq

(g/t)

18 222

99 279

.67 257

07 215

on the individor more veinage.

cutoff of $ 48.3

IN SITU MET

Au

(Moz)

Ag

(Moz

0.43 13.2

0.47 18.3

0.89 31.5

0.46 16.7

cutoff of $ 48.

IN SITU M

Au

(Moz)

Ag

(Mo

– –

0.01 0.4

0.01 0.4

0.08 3.5

nue cutoff of $

IN SITU M

Au

(Moz)

Ag

(Mo

0.01 0.2

0.01 0.4

0.02 0.7

0.00 0.0

dual contribus, a domina

30 /t, as of 11 Ja

TAL CONTENT

z)

AuEq

(Moz)

A

(

20 0.61 4

36 0.73 5

57 1.35 9

75 0.70 4

30 /t, as of 11

METAL CONTE

g

oz)

AuEq

(Moz)

A

(

– –

48 0.02

48 0.02

58 0.13 8

$ 48.30 /t, as of

METAL CONTE

g

oz)

AuEq

(Moz)

A

(

27 0.01 0

48 0.02

74 0.03 2

05 0.00 0

87

ution of nt vein

anuary

AgEq

Moz)

42.99

51.17

94.16

48.84

NT

AgEq

(Moz)

–

1.14

1.14

8.95

11

NT

AgEq

(Moz)

0.78

1.47

2.24

0.12

PERevDat


TableJanua

CLAS

TableJanua

CLAS

TableJanua

CLAS

Table2012

CLAS

TableJanua

CLAS

Tablof thbeenis 11

1


SSIFICATION

Inferred


SSIFICATION

Inferred


SSIFICATION

Inferred

e 14.9 Estimate

SSIFICATION

Inferred

e 14.10 - Estimaary 2012

SSIFICATION

Inferred

e 14.11 beloe resources

n rounded to January 20

ted Mineral Res

TONNAG

(Mt)

0.05

ted Mineral Res

TONNAG

(Mt)

0.15

ted Mineral Res

TONNAG

(Mt)

0.51

ed Mineral Reso

TONNAG

(Mt)

0.41

ated Mineral Re

TONNAG

(Mt)

0.10

ow shows theestimates a reflect the p12.

sources for the

GE Au

(g/t)

2.04

sources for the

GE Au

(g/t)

1.01

sources for the

GE Au

(g/t)

2.01

ources for the

GE Au

(g/t)

3.14

esources for th

GE Au

(g/t)

0.50

e total minercross all eig

precision of t

e Angela R2 Br

GRADE

Ag

(g/t)

AuEq

(g/t)

83 3.23

e Angela R3 Br

GRADE

Ag

(g/t)

AuEq

(g/t)

120 2.73

e Angela R4 Br

GRADE

Ag

(g/t)

AuEq

(g/t)

92 3.32

Martha Vein, a

GRADE

Ag

(g/t)

AuEq

(g/t)

99 4.55

he Lourdes Ve

GRADE

Ag

(g/t)

AuEq

(g/t)

93 1.82

ral resource iht domains.the estimates

ranch, at a rev

q

AgEq

(g/t)

3 226

ranch, at a rev

q

AgEq

(g/t)

3 191

ranch, at a rev

q

AgEq

(g/t)

2 232

at a revenue cu

q

AgEq

(g/t)

5 319

in, at a revenu

q

AgEq

(g/t)

2 128

inventory forAs with the s, and the ef

enue cutoff of

IN SITU M

Au

(Moz)

Ag

(Moz

0.00 0.12

enue cutoff of

IN SITU M

Au

(Moz)

Ag

(Moz

0.00 0.59

enue cutoff of

IN SITU M

Au

(Moz)

Ag

(Moz

0.03 1.49

utoff of $ 48.30

IN SITU M

Au

(Moz)

Ag

(Moz

0.04 1.30

e cutoff of $ 48

IN SITU M

Au

(Moz)

Ag

(Moz

0.00 0.28

r the entire pprevious tabffective date

$ 48.30 /t, as o

ETAL CONTEN

z)

AuEq

(Moz)

A

(

2 0.00 0

$ 48.30 /t, as o

ETAL CONTEN

z)

AuEq

(Moz)

A

(

9 0.01 0

$ 48.30 /t, as o

ETAL CONTEN

z)

AuEq

(Moz)

A

(

9 0.05 3

/t, as of 11 Jan

ETAL CONTEN

z)

AuEq

(Moz)

A

(

0 0.06 4

8.30 /t, as of 11

ETAL CONTEN

z)

AuEq

(Moz)

A

(

8 0.01 0

roject, i.e. thbles, numbers

of these est

88

of 11

NT

AgEq

Moz)

0.33

of 11

NT

AgEq

Moz)

0.93

of 11

NT

AgEq

Moz)

3.79

nuary

NT

AgEq

Moz)

4.21

1

NT

AgEq

Moz)

0.39

he sum s have imates

PERevDat

14


TableJanua

CL

Meas

4.1.13 Grad

Figutotal wallsthe erepothe m

1

e 14.11 - Estimaary 2012

LASSIFICATION

Measured

Indicated

sured+Indica

Inferred

de-tonnage

res 14.18 thrresources a

s, and the gredges of th

orting cutoff. material with

ated Mineral Re

N

TONN

(M

3.

3.

ted 7.

4.

Curves

rough 14.20 are affected brade climbinge veins, theRegardless in the vein w

esources for th

NAGE

Mt)

Au

(g/

28 4.1

78 4.0

07 4.0

94 3.9

show how thby changes ig quickly fro

e resource tof the cutoff,

wireframes.

he Inmaculada

GRADE

u

/t)

Ag

(g/t)

Au

(g

10 128 5.9

05 159 6.3

07 144 6.1

91 152 6.0

he tonnage, n the reportinm well below

tonnages an, the resourc

a Project, at a r

E

Eq

/t)

AgEq

(g/t)

92 415

32 442

13 429

08 426

gold grade ang cutoff. Wiw cutoff to wnd grades arce inventory

evenue cutoff

IN SITU M

Au

(Moz)

Ag

(Mo

0.43 13.4

0.49 19.3

0.93 32.7

0.62 24.1

and silver graith the main v

well above cure relatively essentially c

of $ 48.30 /t, as

METAL CONTEN

g

oz)

AuEq

(Moz)

A

(

47 0.63 4

32 0.77 5

79 1.39 9

17 0.97 6

ade of the prveins havingutoff within ±

insensitive covers almos

89

s of 11

NT

AgEq

(Moz)

43.76

53.78

97.54

67.57

roject’s g sharp ±1 m of

to the st all of

PERevDat


Figur

1

re 14.18 - Resource tonnage vversus reportinng cutoff

90

PERevDat


Figur

1

re 14.19 - Resource gold grad

de versus reporting cutoff

91

PERevDat


Figur

Withwith

1

re 14.20 - Reso

the gold andcutoff, the in

urce silver gra

d silver gradn situ metal c

ade versus repo

e increasingcontent is ins

orting cutoff

slightly withsensitive to th

cutoff, and the cutoff.

the tonnage decreasing s

92

slightly

PERevDat

14


4.1.14 Estim

For tgrad

This meaall, hExpr

A chthe ftwo.

A chthickbut,

1

mate of Gra

the calculatioe of the was

estimate is sured or indhave a declressed as me

heck was donfootwall vers

heck was alskest of the thas with the p

ade of Dilutio

on of diluted ste rock imme

based on alicated resouustered andetal-equivale

ne for the posus the hang

so done for ree veins, th

previous che

on

resources aediately adja

l of the assaurces: Angelad length-weigents, these av

ossibility of agingwall, but

the possibihe main Angeck, the differ

and reservesacent to the v

ays less thana, Angela R1ghted averaverages are

a systematict no significa

lity of systeela Vein, hasrences were

, it is necessveins.

n 1m outside 1 and Angelge grade of0.48 g/t AuE

c difference bant difference

matic differes slightly hignot statistica

sary to have

of the threea Splay. Thef 0.30 g/t AuEq and 30.2 g

between the e could be f

ences betweher grades inally significan

an estimate

e veins that cese assays, u and 11.2 gg/t AgEq.

average grafound betwe

een the veinsn its dilution nt.

93

e of the

contain 506 in

g/t Ag.

ade on en the

s. The fringe;

PERevDat

15

15


5 Min

Of thindicmeacontthe A

The and diluti

Meato prcons

The

Table

C

Prove

Proba

Tota

The the dreso

5.1 Mine

The brangeomthe M

The accoasseand

The units

1

neral Rese

he eight recocated resourcsured and iinuity for expAngela Vein.

mineral resesub level stion and ore l

sured and inroven and psidered waste

Inmaculada

e 15.1- Inmacul

ategory

en

able

l

reason for tdilution expeurces.

eral Reserve

mineral resches) and

mechanical rMining Units

MU’s wereommodate stessment of thsilver revenu

next stage s depending

erve Estim

ognized mineces were asndicated resploitation. Co

erves were etoping both uosses for ea

ndicated minerobable resee.

project mine

ada Project - M

Mt g/t

3.84 3.4

3.96 3.3

7.80 3.3

the mineral rected during

e Estimate C

erve estimawas base

recommenda(MU) to whic

e defined bytopes for bohe economicue compared

included deon the minin

mate

eralized strucssigned to onsources are onsidering th

estimated conusing cemen

ach method.

eral resourceerves, while

eral reserve e

Mineral Reserv

Au

Moz

Conten

40

33

37

reserve tonn the mining

Calculation

tion only coed on the ations and pch dilution an

y areas ofoth mining mc contributiond to the costs

esigning infrang method se

ctures includenly three vei

found in thhis, the mine

nsidering twonted paste b

es were usedthe materia

estimate is s

ves

nt g/t

0.42 1

0.42 1

0.84 1

nage being hof the vein

Procedure

onsidered theresource b

otential stopnd ore loss w

90 m alongmethods (subn of each mins of mining, p

astructure anelected for ea

ed in the resng. Of these

he Angela Vral reserves

o undergroubackfill and i

d as inputs fl correspond

ummarized i

Ag

Moz Conten

06 13

34 17

20 30

higher than t, and not du

e Angela Veblock modepe sizes whicwas applied.

the vein bb level stopining unit wasprocessing, a

nd access tach MU.

source estimae three veinsVein, which

estimate rel

nd mining mncluding the

for mine desiding to inferr

in Table 15.1

nt g/t

3.13 5.1

7.01 5.5

0.14 5.3

he resource ue to inclusi

ein (not the el, mining ch assisted

by 25 m in ing and cut s undertakenand metal sa

o these eco

ate, measures, 95% of thpresents sulates exclusi

methods: cut e relative effe

ign and convred resource

1.

AuEq

MozConte

8

56

37

tonnage is on of any in

minor splaymethod sein the defini

height suitaand fill). An

n based on itale costs.

onomically m

94

ed and he total fficient vely to

and fill ects of

version es was

nt

0.64

0.71

1.35

due to nferred

ys and lected, ition of

able to n initial ts gold

minable

PERevDat

15

15

15


5.2 Dilut

Aftercut-omineinter

Two

Thesexpe

The Sect

5.3 Ore

The

5.4 Mine

The table

Table

Ty

Cut a

BaseHead

Stope

Sub

StrikeHead

Stope

1

tion

r evaluating off representeral reservesrnal dilution.

mining diluti

In the areafootwall (Fdetermined

In the areasame reas

se values haerience from

grades of thtion 14.1.14.

Loss

ore loss exp

Practical mstructure wwith the in

Operationasome inevstope quan

eral Reserve

main geomee:

e 15.2 - Geomet

pe

and Fill

e ding

Max: 6

Min: 4 m

e Max: 6

Min: 4 m

Level Stopin

e ding

Max: ve

Minimu

e Maximu

Minimu

the block moted less tha

s determinatio

ion estimates

as mined byFW) and hand by the geo

as mined by sons, even th

ave been disexisting ope

he dilution d

pected is due

mine design wwill not be futerpreted mi

al factors; dvitable loss ontities.

es

etries and dilu

trical and Dilut

Width

m

m

m

m

g

ein width

um: 4 m

um: vein width

um: 4 m

odel within than 2% of thon these blo

s were define

cut and fill, 2ngingwalls (Homechanical

sub level stohough the he

scussed and erating mines

described ab

e to ore body

will not exaclly extractedneralized str

ue to drillingof ore. The im

ution width fo

tion Parameter

45 m ea

90 m Mi

45 m ea

90 m Mi

15 m ea

90 m Mi

h 15 m ea

90 m Mi

he defined me total tonn

ocks were inc

ed for the mi

25% of the aHW) adjacenstudies.

oping, 30% oeight of the st

agreed withs.

bove were e

geometry an

ctly follow the, remaining “ructure an or

g, blasting ampact of the

or each mini

rs

Length

ch side of acc

ning Unit

ch side of acc

ning Unit

ch side of acc

ning Unit

ch side of acc

ning Unit

mining limits, nage within corporated in

ining method

average vein nt to the vein

of the averagtope was lim

h Suyamarca

estimated as

nd operation

e vein geome“in situ”. Comre loss of 1%

and stope exse factors is

ng method a

He

cess

cess

cess

cess

blocks with the designe

nto the MU’s

ds selected:

width was an being of po

ge vein widthmited to only 5

a personnel

included un

nal aspects:

etry and partmparing the d

% has been es

xtraction actis estimated a

are summariz

eight FooDilu

4 m + 0

4.5 m + 0

4 m + 1

5 m + 1

a grade beloed stopes. F

and represe

dded based oor rock qua

was added 5 m.

based on pr

nder the Res

t of the minedesigns devestimated.

ivities will reat 3% of the

zed in the fol

otwall ution

Hang

Dilu

0.80 m +

0.80 m +

.15 m +

.15 m +

95

ow the For the ents an

on the ality as

for the

revious

source

ralized eloped

esult in in situ

llowing

ingwall

ution

0.80 m

0.80 m

1.15 m

1.15 m

PERevDat


Tablasse

Table

Gold

Silve

Cost

Cut a

Sub L

Proce

Gene

Meta

Gold

Silve

Paya

Gold

Silve

FromAu a

1

e 15.3 sumessment.

e 15.3 - Econom

Metal Pr

r

ts

and Fill Mining

Level Stope M

essing

eral and Admin

allurgical Rec

r

able Percenta

r

m above the and 120.2 g/t

marizes the

mic and Metallu

rices

g

Mining

nistration

coveries

ages

Inmaculada t Ag, containi

economic a

urgical Parame

Va

project mineing 0.84 Moz

and metallur

eters

alue

1,100

18

44.47

32.15

25.30

9.99

95.6

90.6

99.85

99.75

eral reservesz Au and 30.

rgical param

Units

US$

US$

US

US

US

US

s totals 7.8 M14 Moz Ag a

eters used

$/oz

$/oz

S$/t

S$/t

S$/t

S$/t

%

%

%

%

Mt of ore withas shown in T

in the Minin

h grades of 3Table 15.1.

96

ng Unit

3.37 g/t

PERevDat

16

16

16


6 Min

6.1 Mine

The

(a) o

(b) d

(c) p

(d) e

Pracconsrecovein operoperminin

Figur

6.2 Mine

The geomcond

Permand 35 m

1

ning Metho

e Design Ba

main design

ore and host

dip and thickn

production an

estimated ore

ctical input sideration asmmendationdeposits. T

rating policierational parang method.

re 16.1 - Mining

e Design De

undergroundmechanical rditions.

manent workproduction le

m from the v

ods

asis

elements co

rock geomec

ness of the A

nd productivit

e dilution and

from the Ss well as r

ns from SuyaThe author aes provided bameters. Figu

g methods app

escription

d infrastructurock conditio

ks such as mevels off vei

vein. Likewise

onsidered we

chanical cha

Angela Vein;

ty requireme

d losses.

Suyamarcaresults fromamarca wereand QP of tby Suyamarcure 16.1 sho

licable to the A

ure will be loons are foun

main ramps, mn (also callee the ore an

ere:

racteristics;

ents of each m

Technical am initial geoe based on ohis Section ca, and subsows a longit

Angela Vein

ocated in thend compared

main produced by-passesnd waste pas

mining metho

and Operatomechanical operating expagreed with

sequently inctudinal sectio

e FW of the d to the HW

ction levels as) will be locsses will be

od; and

ional teams2D and 3

perience minh these recocluded in theon showing

Angela VeinW, providing

and operatingated at a mideveloped a

s was take3D modelingning similar nommendatione mine desigthe areas o

n, where the safer const

g ramps, cronimum distaadjacent to t

97

n into g. The narrow ns and gn and

of each

better ruction

osscuts ance of the by-

PERevDat


passramp

BasehighThe dip adevianarrointervsufficof 3prod

The minin

1

ses and locaps.

ed on geomly mechanizsub level sto

angles with sation and dower veins arvals. Both mcient height t,506 t/d. A uction mater

following Fing methods

ated in the

mechanical roed mining moping was sesub-levels dilution. The

and lower dipmethods will u

to allow a nurobust mine

rial, ventilatio

igures 16.2 selected.

center of ev

ock conditionmethods werelected for theveloped at cut and fill

p angles; accuse cementeumber of sime infrastructon, backfill, o

through 16.

very operati

ns, orebody re selected, he better roc9 m verticamethod wa

cesses to thed backfill. T

multaneous mure has bee

ore transfers

5 depicts th

ng area del

geometry, vnamely cut

ck conditionsal intervals toas selected e vein will b

The 2 km longmining sectioen designedand water h

he main geo

limited by th

vein width aand fill and

s, wider veinso limit HW egenerally oe developedg vein has gns to ensure

d to handle andling.

ometrical cha

he internal a

and dip anglsub level st

s and near vexposure, dron weaker gd at 12.5 m vgood continue an ore prod

developmen

aracteristics

98

access

e; two toping. vertical ill hole

ground, vertical ity and duction nt and

of the

PERevDat


Cut &

Figur

1

Fill Stope

re 16.2 - Main In

Pivotin

nfrastructure f

ng access

or Cut and Fill

and Mining De

Preparation

etails

n of Base Cuut

99

PERevDat


Figur

1

re 16.3 - Main Innfrastructure f

or Sub Level SStoping and Mining Details

100

PERevDat


Figur

A gein Fig

Figursouth

1

re 16.4 - Stopes

eneral arranggure 16.5.

re 16.5 - Main aheast)

s and main infr

gement show

access ramps,

rastructure vie

wing accesse

levels and inte

w (looking sou

es necessary

ernal ramps wit

utheast)

y for the minin

th a schematic

ng of the Ang

c view of the An

gela Vein is

ngela Vein (loo

101

shown

oking

PERevDat

16

16

16


6.3 Mine

The deve

In acof mcond

Likewcom

Prodown

6.4 Mine

Deve(des

Devewherloade

The helicshotc

The raise

Loaddistadistaprod

Ore to th(betw

Pastprop

6.5 Mine

The

1

e Operation

following crielopment and

ccordance wmain ramps, ducted by thi

wise the orepany special

duction mininresources (p

e Operations

elopment anigned by the

elopment andre needed aer. Vertical p

ground supcoidal bars, creting, com

slot or free e borers whic

ding and tramances no greances low pruction will ha

produced ate 4,300 leveween 27 and

te backfill wiportion of cem

e Developm

following typ

Main ramp

Main level

Sub levelsstoping are

Internal co

Ventilation

Criteria

teria were cod operation:

with Suyamarworking leverd party mini

e and waste lized in intern

ng and suppopersonnel an

s

d productione equipment m

d productionas the preseproduction dr

pport work wSwellex or

plemented b

face openinch can drill ve

mming of blater than 15rofile miningave remote c

t levels 4,400el, from wherd 30 t) by way

ll be used ement used in

ent

pes of develo

p 5 m x 5 m;

s 4 m x 4 m;

s or mining eas;

onnection ram

n raises with

onsidered fo

rca’s operatiels (on and ing contracto

transport frnal mine tran

ort work of thnd equipmen

n drilling will manufacture

n explosive loence of grourill holes will

will use jumr Hidraboltsby a concrete

g for producertical raises

asted mater0 m, based o trucks will

control opera

0 and 4,500 re it will be try of the 4,40

employing a the fill for th

opment were

headings 4.5

mps 4 m x 4

raise boring

r the estimat

ng policy, moff vein), op

or, which sha

rom undergronsport.

he Angela Vet).

use electro er for this kind

oading will beund water pralso be load

mbo boltersbolts. Man

e mixer, and

ction in the ss up to 2.1 m

rial will be pon ore passebe used. Th

ation.

will be tramransported u0 level ramp

surface plane sub level s

designed:

5 m x 4 m i

m;

at a diamete

tion of capita

ine developmperating ramall employ its

ound shall b

ein shall be u

hydraulic jud of equipme

e done manurecludes theed manually

which willnual methodformwork co

sub level sto in diameter.

erformed byes design anhe scoop tra

med to the ousing dump tp to the mine

nt and an intstopes is 5%

in cut and fi

er of 1.8 m;

al and opera

ment work amps and stop

own resourc

be conducted

undertaken u

umbos fitted ent) and teles

ually using ree use of a my.

install split ds will be onstruction.

oping method.

y diesel scood location. F

ams used in

ore passes ttrucks with aentrance.

ternal distrib and 2% in c

ill and 4 m x

ating costs fo

and ground spe access shces.

d by a contr

using Suyam

with long hoscopic boom

etractable scmechanized

sets, mechused for w

d will be don

op trams, coFor greater ha sub level s

that will trans capacity of

bution systemcut and fill sto

x 4 m in sub

102

or mine

support hall be

racting

marca’s

ole kits ms.

affolds ANFO

anical, wet-mix

ne with

overing aulage stoping

sport it 20 m3

m. The opes.

b level

PERevDat

16

16

16


6.5.1 Deve

MICS

6.6 Main

The

The equi

6.7 Mine

Split spec

Thewhic

1

Service ra

Bypasses,

elopment Su

SAC develop

Systematic

Applying aramps, inte

A ratio of every 40 m

A ratio of bolts per mmeshing w

n Equipmen

equipment s

Slot drillingfor stope b

Productionhorizontal 5.5 m longsub level s

Pre-splittinkit of long

Mine headJumbo unand

Tramminghaul trucks

Main Tran

number of epment perfor

e Production

sets and cifications:

7 foot helic

7 foot split

Electro-we

100% shot

placement och drawpoint

ises with rais

, crossroads

upport

ped the follow

c roofboltings

a 2-inch thicernal ramps,

4 metal stram in the draw

5.1 bolts pemeter was aswas assumed

t

selected for t

g – Raise boblasting in su

n drilling will headings a

g holes and 2stoping;

ng will be doholes at a di

dings and suits. The app

on productis.

sport will be

equipment urmance and

n Support W

mesh were

coidal bolts i

t set friction b

elded wire m

tcrete withou

of metal strats, access ra

se boring at

, drawpoints

wing mine su

s and meshi

kness of sho levels and b

aps every 40wpoints / acce

r meter for 5ssumed for 4d in both cas

he undergro

orers mounteub level stopi

be done usind for cut a2.5 inch diam

one on sub leiameter of 2.

b level supplication of sh

ion levels w

completed u

units requiredestimated ef

Work

used in 10

njected with

bolts for non-

esh No. 8 in

ut steel fibers

ps using a raamps and min

a diameter o

and accesse

upport criteria

ng for all dev

otcrete in upbypasses;

0 m for areaesses from t

5 m x 5 m ra4 m x 4 m ra

ses.

und works a

ed on crawleng areas;

ng electro-hand fill areasmeter with an

evel stoping 0 inch to red

port: installatihotcrete will

ill use 4.6 m

using haul tru

d was estimffective avail

00% of prod

cement grou

-permanent /

100% of are

s for sub leve

atio of 6 strapneralized stru

of 1.5 m; and

es at 4 m x 4

a for the FS:

velopment an

p to 50% of

as under devhe bypass to

amps was asamps or leve

re listed belo

ers will be u

ydraulic jums. The jumbon estimated

using electrduce the imp

ion of roofbobe done usi

m³ and 3.0 m

ucks with a c

ated in accoability and ut

duction sup

uting for perm

/ occasional

ea in prepara

els, drawpoin

ps per intersuctures inter

d

4 m sections

nd preparatio

mine areas

velopment, ao the ore dep

ssumed wheels. A 1.5 m x

ow:

sed on the f

bos with a teos are equipeffective dril

ro-hydraulic act to sidewa

olts and mesing 6 m3/hr m

m³ diesel sco

capacity of 20

ordance withtilization rate

port work,

manent work

work;

ation working

nts and acce

ection was ursect.

.

on work;

including the

and 6 metalposit; and

ereas a ratio x 1.5 m syst

free face op

elescopic bopped with a l rate of 25 m

jumbo drills alls;

h using automanual equip

op trams an

0 m³

h the mining es.

with the fol

k;

gs; and

ss ramps.

used in areas

103

e main

straps

of 3.9 ematic

enings

oom for kit for

m/h for

with a

omated pment;

nd 20 t

cycle,

llowing

s in

PERevDat

16


No aextra

6.8 Prod

A twthe m

The the meth

The of op

Table

The infraoper

Priorrequ

The Figu

Table

Ye

20

20

20

20

20

20

1

active suppoaction proces

duction Sch

wo year pre-omain levels a

production sproject´s ne

hods selected

mine scheduperation reac

e 16.1 - Produc

M

overall projestructure corations in Q1

r to the start ired in additi

annual prodre 16.6.

e 16.2 - Annual

ear Tonn

(M

14 0.6

15 1.2

16 1.2

17 1.2

18 1.2

19 1.2

ort system wss.

edule

operational pand internal r

schedule haset present vd.

ule shown in ching 3,506 t

tion Ramp-up

Month

1

2

5

7

10

13

ect schedulenstruction in 2014.

of operationion to interna

duction prog

Production Pl

nage Mt)

Grad(g/

62 3.8

26 3.4

26 3.0

26 2.6

26 3.0

25 3.6

ill be applied

eriod has beramps to sup

s been develvalue in con

Table 16.1 ht/d at the star

during the firs

e anticipatesn Q4 2013, a

s the construal ramps and

ram is show

an

e Au/t)

Grade(g/

81 98

41 121

01 147

65 130

03 109

64 96

d in the sub

een considerpport the first

loped to accenjunction wit

has a steadyrt of the seco

t year of opera

Ore

s the compleand assume

uction of appd the prepara

wn in Table

e Ag/t)

GraAu(g

.0 5.

1.0 5.

7.2 5.

0.9 4.

9.4 4.

.8 5.

level stope

red during wt year produc

ess the highth the produ

y ramp-up in ond year of o

ation

Production (t/d)

250

500

1,000

2,000

3,240

3,506

etion of the es the comm

proximately 3ation of mine

16.2 with a

ade uEq g/t)

A(x 1oz

44 7

43 1

46 1

83 1

85 1

25 1

void genera

hich three mction will be d

er grade areuctivity offer

production doperation.

process plamencement o

3.5 km of maworkings.

graphical se

Au 1000 zAu)

A(x10ozA

76 1,9

38 4,9

22 5,9

07 5,2

23 4,4

47 3,9

ated during t

mine access rdeveloped.

eas first to opred by the

during the firs

ant and necof mine prod

ain access ra

equence sho

Ag 000 Ag)

AuE(x10

ozAg

945 10

905 22

969 22

296 19

426 19

904 21

104

he ore

ramps,

ptimize mining

st year

essary duction

mps is

own in

Eq 000 gEq)

8

0

2

95

96

2

PERevDat

16


Ye

20

To

Figur

6.9 Anc

The

1

ear Tonn

(M

20 0.8

otal 7.8

re 16.6 - Annua

illary Servic

design and/o

Ventilation

Dewaternipumping o

Power sup

Compress

Main Back

nage Mt)

Grad(g/

89 4.6

80 3.3

al Mining Graph

ces

or size of the

n System;

ng system, tof approxima

pply;

sed air supply

kfill system lin

e Au/t)

Grade(g/

60 128

37 120

hic Sequence l

e following fa

taking into actely 100 l/s d

y; and

nes through

e Ag/t)

GraAu(g

8.9 6.

0.2 5.

ooking north-w

acilities were

ccount availaduring the firs

4 raises (or

ade uEq g/t)

A(x 1oz

75 1

37 8

westerly

established

able informast two years

boreholes).

Au 1000 zAu)

A(x10ozA

32 3,6

845 30,1

during the F

ation indicatinof project op

Ag 000 Ag)

AuE(x10

ozAg

696 19

141 1,34

FS:

ng the need peration;

105

Eq 000 gEq)

94

47

for the

PERevDat

17

17

17

17

17

17


7 Rec

7.1 Gen

The to thand smeprocplace

7.2 Plan

The

The

7.2.1 Thro

An osimilachie

The reviefeed proc

7.2.2 Head

The aver

7.2.3 Proc

The nomtestwhardprocused

1

covery Me

eral

process planhe primary cr

grinding of lting of the pessing. Follement in the

nt Design Ba

FS design c

key criteria s

An averag

Design avequipment

Sufficient completed

oughput and

overall plant ar well opeeved 91.3%

throughput ew of testwor

material froessed. This

d Grade

plant is desirage feed gra

cessing Stra

process deinated desig

work compleness paramessed is exp

d for design.

ethods

nt and assocrusher, to prthe ROM orprecipitate tolowing cyan tailings stor

asis

riteria were b

selected for t

ge throughpu

vailability oft in critical ar

plant desigd at design th

d Availability

availability oerated plantsoverall plant

selected is rk data, a plaom the Angeequates to a

igned to treaades of 3.4 g

ategy

esign is basgn throughpueted on sam

meters were pected to be

ciated serviceroduce doré re, agitated o produce donide destrucage facility (T

based on det

the plant des

t of 3,506 t/d

f 91.3%, bereas, and

gn flexibility hroughput.

y

of 91.3% or 7s with abrat availability.

mainly a fuant throughpela Vein. Wan annual mil

at various tong/t Au and 12

ed on treatut rates. Inpuples from Zselected base similar or

e facilities wibars and taitank cyanidaoré bars thaction, the leTSF) or used

tailed testwo

sign are:

d for 365 day

eing 7,998

for treatme

7,998 h/y waasive ores s

unction of thput of 160 t/hith 91.3% all capacity of

nnages of or20 g/t Ag.

ing the diffeuts for the AuZone 1, Zonesed on the softer in ha

ill process ruilings. The pation leachint are then s

eached tailind as mine ba

ork and expe

ys per year;

operating h

ent of all o

as nominatedsimilar to th

he mining ph is sustainabvailability anf 1,279,660 to

re with a max

erent ore tyusenco comme 2 and Zon75th percentrdness than

un of mine (Rprocess encong, a Merrill hipped to a ngs will be ackfill.

rience from

hours per ye

ore types ba

d. Benchmarhose tested

roduction scble based onn average oonnes of ore

ximum feed

ypes tested minution modne 3 of the tile, i.e. 75%the ore har

ROM) ore deompasses cr

Crowe circurefinery for thickened

similar opera

ear, with st

ased on te

rking indicatehave consi

chedule. Fron 100% of thef 3,506 t/d c

e.

rate of 160 t

individually del were basAngela Vei

% of the orerdness param

106

livered rushing uit and further before

ations.

tandby

estwork

es that stently

om the e SAG can be

t/h and

at the sed on n. Ore

e to be meters

PERevDat

17


7.2.4 Desi

The variadesigoper

The prog

Table

Are

OR

PRI

SAG

BAL

1

ign Criteria

overall apprability in the gn strategy rating cost of

detailed proram A summ

e 17.1 - Key Pro

ea

E PROCESSI

Gold

Silver

Bulk dens

Humidity

Crushing

UCS: Des

Drop Wei

Rod mill b

Ball mill b

Abrasion

Ore annu

Available

Plant ava

Design fe

Hours of o

Plant nom

Plant max

IMARY CRUS

Type

Closed si

G MILL

Size

Installed P

LL MILL

Type

Size

Installed P

Summary

roach was tometallurgicawas to red

f the plant wh

ocess desigmary of the ke

ocess Design C

Desc

ING AND CHA

sity of crushed

in RoM ore

Work Index

sign

gh Index (des

bond work ind

bond work inde

index

al processing

hours per day

ailability

eed rate

operation per

minal processi

ximum proces

SHER

de opening

Power

Power

o provide a al performanuce the unithilst maintain

gn criteria deey criteria is

Criteria Summa

cription

ARACTERIST

d ore

sign)

ex

ex

y

year

ng per day

ssing per day

robust procnce of the tht process stning metallur

erived from shown in Ta

ary

TIC OVERVIEW

cess plant flohree Zonestages requirrgical perform

the results able 17.1.

Unit

W

g/t

g/t

t/m3

% H2O

kWh/t

MPa

kWh/m³

kWh/t

kWh/t

t/y

h/d

%

t/h

h

t/d

t/d

mm

m

kW

m

kW

owsheet thatbased on thred to reducmance.

of the met

D

t could handhe testwork. ce the capita

tallurgical te

Design

1,2

Jaw c

6.4 x 3

O

5.5 x 8

107

dle the A key

al and

estwork

3.4

120

1.6

4%

20

65

4.6

18

21

0.44

279,660

24

91.3

160

7,998

3,506

3,840

crusher

115

3.1 EGL

2,000

Overflow

8.5 EGL

4,200

PERevDat


Are

MIL

LEA

CO

MER

SME

DES

TAI

PAS

1

ea

LL CYCLONES

Overflow

Cyclone d

Cyclone o

ACHING

Number o

Leach res

UNTER CURR

Number o

Target wm3 of leac

Design un

RRILL CROW

Feed flow

Clarifier fi

Precipitat

ELTING

Number o

Type of fu

Smelting

STRUCTION O

Method o

Target oexceed

LINGS THICK

Type of th

Underflow

Addition o

STE FILL PLA

Plant ava

Fill produ

Desc

S

P80

diameter

overflow dens

of tanks

sidence time

RENT DECAN

of stages

ashing ratio (ch solution)

nderflow dens

WE CIRCUIT

w, nominal

ilters

te filters

of mercury reto

urnace

frequency

OF CYANIDE

of destruction

of destruction

KENER

hickener

w density

of flocculant

ANT

ailability

ction capacity

cription

ity

NT

(m3 of washin

sity

orts

E IN TAILINGS

n, CNWAD s

y

ng solution:

S

should not

Unit

microns

mm

% w/w

h

% w/w

m³/h

d/wk

mg/L CNWAD

% w/w

g/t

%

m3/h

D

2

2

Design

operating, 1 s

operating, 1 s

Reve

Hi

108

50

150

40

7

96

4

4

55

809

standby

standby

2

erbatory

5

SO2/Air

<50

igh rate

55

50

50

130

PERevDat

17


7.3 Flow

The fromshow

1

w Sheet Dev

FS plant flo plants ope

wn in Figure

velopment

ow sheet warating within17.1.

s designed n the region

based on th on similar

he testwork rore types. T

results and bThe overall

benchmarkeplant flowsh

109

d data heet is

PEMN00012-RPT-000Rev: 0 Date: 11 January 2012

Figur

FROENDLOA

1

2

re 17.1 - Overall Pro

TRUCKSTOCKPILE ROM

TAILINGS STORAGE FACILI

RECOV

TAILI

NGS

FLOCCULANT

HYDR

OGEN

PER

OXID

EFE

RRIC

SUL

PHAT

E

OXYG

ENLIM

E

ONTDADER

JAWCRUSHE

As & CuREMOVAL CIRCUIT

TAILINGSTHICKENER

ocess Plant Flowshe

ROM BIN

FLOCCULANT

ITY

ERY WATER

DETOXIFICATION TANK

CEMENTRECOVERY WATER

FRES

H W

ATER

OXYG

ENCO

PPER

SUL

PHAT

E

SMBS

LIME

R

THICKENERCCD N°4

PASTE BACKFILLPLANT

PASTE BACKFILLTO MINE

BARRESOLUTION

eet

DOREVAULT

ANTI

SCAL

ANT

BELT CONVEYOR

STOCKCRUSHMATER

FLOCCULANT

THICKENERCCD N°3

ENN TANK

FURNACE

FLUXES

E BARS

GAS & MERCURY

KPILEHEDRIAL

FLOCCULANT

THICKENERCCD N°2

THICKENCCD N°

MERCURYRETORT

LIME

SAG MILL

PRECIPITATE FILTER

LEACH TANKN° 7

L

FLOCCULANT

NER°1

DIATOMACEOUSEARTH

Y

LEADNITRATE

CYCLONE CLUSTE

ZINC

VACUUM

PEBBLE RETURN

ATMOSPHERE

OXYGEN

EACH TANKN° 6

LEACH TANKN° 5

LE

DEAIRATIONTOWER

DIATOMACEOUSEARTH

CLARIFIERFILTERS

BALL MILL

ER

ANTISCALANT

OXYGENOXYGEN

EACH TANKN° 4

LEACH TANKN° 3

LEA

S PREGNANTSOLUTION TANK

TRASH SCREE

PRE-CLARIFIER

LIME

FLOCCULANT

OXYGENOXYGEN

LEAD NITRATE

ACH TANKN° 2

LEACH TANKN° 1

CYANIDE(SOL.)

110

N

PERevDat

17


The millincircuare i

The prod

The redurecla

7.3.1 Unit

The provproc

1

process flowng circuit, opuit for precioun a counter c

precipitateduce gold and

leach circuice the cyani

aimed from th

Process Se

unit operatien in the goess operatio

Ore from tsetting of 1

A stock pithe SAG m

A 2.0 MW

A 4.2 MW

7 x 4,085 m

4 x CCD th

An 810 m3

Retort sys

Diesel fired

Leached ta

Tailings th

Centrifuga

Raw procerequired. Pprocess op

Paste bacfilling;

Potable disinfectiovarious oth

Reagent p

Plant and

Pressure scyanide de

wsheet includperated in clus metal disscurrent deca

gold and sd silver doré

t tailings areide (CNWAD)he tailings st

election

ions used toold/silver pro

ons:

the undergro115 mm and

le with live cmill;

SAG mill wit

ball mill in c

m3 live capac

hickener was3/h Merrill Cro

tem to volati

d reverbatory

ailings cyani

hickening in a

al pumping of

ess plant waProcess wateperations;

ckfill plant to

water genn/chlorinatioher locations

preparation a

instrument a

swing adsorestruction cir

des single stose-circuit wsolution in a antation (CCD

silver will bebars.

e treated forlevel to <50

torage facility

o model theocessing ind

ound mine is fed to a stoc

capacity of 1

th pebble ret

losed circuit

city cyanidat

shing stages

owe circuit;

lize and rem

y smelting fu

de destructio

a high rate th

f tailings to a

ater supply er is supplied

produce 130

nerated by n treatment

s around the

and distributio

air services a

rption oxygenrcuits.

age crushingwith cyclonescyanide solu

D) circuit and

e dried and

r cyanide de0 ppm, prior ty and used a

e plant throuustry. The f

crushed usick pile;

1,920 t to pro

turn;

with hydrocy

tion leach tan

s and 1 soluti

move mercury

urnace;

on utilizing th

hickener to a

a conventiona

from the sited from water

0 m³/h of ce

treatmentplant. Potabsite;

on;

and associate

n plant to pr

g, followed bs. The grounution. Precioud precipitated

then smelte

estruction byto release in

as make-up p

ughput and flowsheet inc

ing a primary

ovide crushe

yclones;

nks in series

on clarifier th

y from the pre

he INCO SO2

n underflow

al TSF;

e raw waterr reclaimed f

mented tailin

t of raw ble water is

ed infrastruct

rovide oxyge

by grinding innd slurry is tus metals lead in a Merrill

ed in a reve

y the INCO Snto the tailingprocess wate

metallurgicacorporates th

y jaw crushe

er product su

;

hickener;

ecipitate cak

2/Air process

density of 55

r dam througfrom the TSF

ngs to be us

water indistributed t

ture; and

en for use in

n a SAG-ballhen fed to aached into sCrow circuit

erbatory furn

SO2/Air metgs facility. Wer.

l performanche following

er with a clos

urge capacit

ke;

s;

5% solids;

ghout the plF, mine deca

ed as part o

a filtratto the plant

n the leachin

111

(SAB) a leach olution .

ace to

hod to Water is

ce are major

se size

ty prior

ant as ant and

of mine

ion/UV and to

ng and

PERevDat

17

17

17

17


7.3.2 Crus

Run-800 the Rcruscruscrus

The feedrecla

7.3.3 Grin

The returcontSAGdrive

The screethe solutcyclooverf

7.3.4 Leac

Groucircuto pr

Sodipresincre

A hyairboweak

Slurr

7.3.5 Cou

The thick

The to ththick

Slurrfromsolut

1

shing

-of-mine (ROmm square-ROM bin by her. The jawhes ore to 8hed ore stoc

crushed ore. Three recla

aim ore for m

nding

grinding circrn SAG mill rolled rate to

G mill will be e system and

ball mill wilen and retramill cyclone tion from theone feed pulrflow will grav

ching

und ore slurruit. Leaching rovide a total

um cyanidesurized ringm

ease the pulp

ydrogen cyaorne concentk acid dissoc

ry exiting lea

nter Curren

CCD circuit kener washin

CCD circuit he previous tkener stage (

ry from the f the Merrill Ction will flow

OM) ore wil-grid static ga vibrating p

w crusher is80% passing

ckpile.

e stockpile waim vibrating

milling.

cuit selected pebbles to

o a 6.40 m dequipped w

d single pinio

l be equippectable feed scluster ope

e clarifier ovep density. Mvitate to the l

ry will flow bof precious leach reside

e solution amains. Oxygp pH levels.

anide (HCN)tration of HCciable (WAD)

ach tank 7 wi

t Decantatio

recovers prng.

comprises fthickener sta(1→2→3→4)

final leach taCrowe circuicounter curr

l be dumperizzly into th

pan feeder ths designed tg (P80) 93 m

will have a liv feeders will

by Ausencothe SAG m

diameter by with a single on, allowing t

ed with a sispout/chute.erating in cloerflow is add

Mill cyclone uleach feed vi

by gravity frometals by cy

ence time of

and lead niten is sparge

) gas detectCN gas. A s) and free cy

ll gravitate to

on (CCD) Co

recious meta

four high rateage (4→3→2).

ank will flow it is used asrent to the so

ed from hauhe 100 t caphat reports dto operate wmm. The pri

ve capacity obe installed

o will be a stamill feed. The

3.05 m effe2,000 kW w

the mill to op

ingle 4,200 kThe combin

osed circuit ded to the cynderflow willibrating trash

om the vibrayanide occur96 hours.

trate solutioed into all lea

tor is locatemall laborato

yanide conce

o the CCD re

oncentrate S

als leached i

e thickeners.2→1), while

via gravity ts wash solutiolids flow, inc

ul trucks or pacity ROM hirectly to the

with a closedimary crushe

of 1,920 t or at the base

andard SABe reclaimed ctive grindin

wound rotor iperate at 60 –

kW wound rned mills disc

configuratioyclone feed hl gravitate toh screen.

ating trash rers in a series

n are doseach tanks and

ed above thory is locate

entrations in s

ecovery circu

Solution Rec

into solution

. CCD thickethe underflo

to the first Cion in the focreasing in p

a front-end hopper. Ore 1.1 x 0.86 md side settiner product is

approximateof the crush

configuratiocrushed or

ng length (EGnduction mo– 80% of criti

rotor inductiocharge slurryon with the bhopper to ac the ball mill

emoval scres of seven ag

ed to the led slaked lime

e leach tand in the leacsolution.

uit.

covery

via four-sta

ener overflowow will be p

CCD thickeneurth CCD th

precious meta

loader throis recovere

m single toggng of 115 ms conveyed

ely 12 hours hed ore stock

on with provisre will be feGL) SAG miotor variable ical speed.

on motor, troy will be pumball mill. Prechieve the re feed, and c

en to the legitated leach

eaching circe slurry is ad

nks to monitch area to a

ge counter-c

w solution wiumped to th

er. Barren sickener. Theal concentrat

112

ough a d from gle jaw m and to the

of mill kpile to

sion to d at a ill. The speed

ommel mped to

egnant equired cyclone

aching h tanks

uit via dded to

tor the analyze

current

ll pass he next

olution e wash tion as

PERevDat

17

17

17

17

17

17


it prowill bCCD

7.3.6 Solu

7.3.6.1 S

PregThis clariffilter the cmaintowe

7.3.6.2 P

Clarioxyg

7.3.6.3 Z

The metesolutaerathe p

7.3.7 Gold

AfterFiltecalcicontasmepour

Slag

7.3.8 Taili

The to lestime

The 42%SO2)mainthe tproc

1

oceeds to thebe pumped t

D thickener w

ution Clarific

Solution Clari

gnant solutiosolution, co

fier. Clarifier circuit. The

clarification pntain the filteer.

Pregnant Solu

ified pregnagen content i

Zinc Precipita

de-aerated ered into thetion. This mi

ated solution precipitate filt

d Room

r precipitate r cake dischning. The mainers. Oncelting fluxes ared into ingot

from the sm

ngs Detoxif

cyanide detoss than 50 pof 3 hours.

tailings thick solids prior ) is also addentain a high rtank to mainess.

e first CCD thto the tailings

will report to t

cation and Z

fication

n gravitatesombined withoverflow gramajority of

pressure leafer cake poro

ution De-Aer

nt solution in the solutio

ation

pregnant soe zinc cone wx will be addand pumpedtration duty.

filtration, theharges from mercury is se

e the mercuand charged ts.

melt is crushe

fication

oxification cippm. The circ

kener overfloto detoxifica

ed to the sluredox potentntain the des

hickener. Ths cyanide dethe pre-clarifi

Zinc Precipi

from the firsh flocculant avitates to ththe remaininf filters. Diatoosity. The cla

ration

is pumped tn to below 1

olution is pumwith lead nitded to the sud through th

e filter cake the filters int

eparated fromury is removinto the reve

ed and return

rcuit is desigcuit consists

ow water is ation. A 20% rry in the feeial to maximsired pH. Co

ickened undetoxification ier thickener

tation

st CCD thickand a recyc

he clarifier ovng suspendeomaceous eaarified pregn

through a dppm to enha

mped to the rate to preciuction line oe precipitate

will be driedto trays that

m the precipved from theerbatory furn

ned to the SA

gned to reduof a single a

mixed with tw/v sodium

ed box. Oxygize oxidation

opper sulfate

erflow slurrycircuit. The pprior to Mer

kener to the cle stream overflow tank ed solids in tarth is meternant solution

e-aeration tance preciou

zinc precipipitate gold an the precip

e filters. Rece

d with high pt are loaded itate, then ree calcine canace. The ca

AG mill.

ce weak acidagitated deto

the incomingmetabisulfite

gen is spargen of the cyane is added to

y from the foupregnant solrrill Crowe.

solution clarof clarifier uand is pumpthe clarifier wred into the fn then flows

ower to redus metal prec

itation filtersand silver froitate filter feeessed plate

pressure air into a merc

ecovered anake, the calcalcine is sme

d dissociableoxification tan

g slurry to ree (SMBS) so

ed into the deide present. o catalyze th

urth CCD thiclution from th

rification thicnderflow, fee

ped to the powill be removfilter feed streto the de-ae

duce the discipitation.

s. Zinc dust om the de-aed pumps wfilters are us

prior to disccury retort ovnd stored in cine is mixeltedand the d

e cyanide, (Cnk with a res

educe the slolution (a souetoxification tLime is dose

he SO2/Air (

113

ckener he first

ckener. ed the

olishing ved by eam to eration

ssolved

will be aerated with de-sed for

charge. ven for sealed

ed with doré is

CNWAD) idence

urry to urce of tank to ed into (INCO)

PERevDat

17

17

17

17

17


7.3.9 Taili

Detow/v dischtailinbackProvCopp

7.3.10 Cop

The and in thpreccomrespthick

7.3.11 Past

The backapprRecltrans

7.3.12 Wate

The

Rawbuildwatesupp

The throufirew

Potachlorused

7.3.13 Reag

The

1

ngs Dispos

oxified slurry with fresh

harged to thengs dam or tok to the cyavision has beper removal

per and Ars

design incluarsenic prec

he feed increipitation circprises two rectively follo

kener where

te Backfill

underflow thkfill plant whroximately 72aimed filtrate

sported to the

er Services

separate wa

Raw water

Tailings St

Potable wa

Fire water

w water will bedings. Water er storage tapression, rea

plant raw waughput the p

water pump s

able water is rination priord for all eye w

gents

main reagen

sal

discharges water, is a

e tailings diso the paste b

anide detoxifeen included circuit.

senic Remov

udes provisiocipitation circease in Zonecuit as thesereaction tanowed by twothe precipita

hickener tailinen mine bac2% solids ane water frome mine backf

ater circuits in

r;

torage Facilit

ater; and

.

e sourced frowill be deliv

ank will supagent mixing

ater tank willplant, laboratsystem, which

sourced fromr to being diswash stations

nts used in th

by gravity inadded to assposal tank abackfill plantfication for fin the desig

val

on to bleed thcuit. It was ide 3 (at depthe elements ks where h

o precipitatioates are settle

ngs slurry is ckfilling is red cement is

m paste backfill boreholes

nclude:

ty (TSF) dec

om the raw wvered to a frpply water foand fire serv

l have a dedtory, camp, th will include

m wells. Thestributed to ts and safety

he process a

nto the tailingssist solid-li

at 55% w/w s. A fraction ofeed dilution gn to bleed th

he tailings thentified durinh) and this mbuild-up in tydrogen pe

on tanks. Thed and pump

pumped at 5equired. Tailiadded to giv

kfill is returnes either by po

cant water;

water dam toesh water stor process mvices.

icated reservtruck workshe a back-up d

e water is filthe camp, bushowers.

re outlined b

gs thickenerquid separa

solids. Tailingof the tailings

and the rehis stream in

hickener oveng the study may have a the circulatinroxide and

he solution isped to the ta

55% solids iings then filtve the adequed to the barositive displa

o service the torage tank make-up req

ve of firewathop and fuel diesel power

tered and steuildings and p

below:

. Flocculant,ation. Thickegs slurry is ths thickener ost reports to

ntermittently

erflow streamthat copper detrimental

ng water strthen ferric s then returnilings storage

n intermittentered by diskate propertie

rren solution acement pum

process planlocated at thquirements,

er. Firewatestorage are

red pump.

erilized by ulprocess plan

diluted to 0ener underfhen pumped

overflow is reo the barrento the Arsen

m through a cand arseniceffect on th

reams. This sulfate are ned to the te facility.

nt form to thek filters to aes for mine btank. The p

mps or trucks

nt, and genehe plant. Thegland water

r will be distras via a ded

ltra violet (UVnt. Potable w

114

0.025% flow is d to the ecycled n tank. nic and

copper c levels he zinc

circuit added

tailings

e paste achieve backfill. aste is

s.

ral site e fresh r, dust

ributed dicated

V) and water is

PERevDat

17

17


7.3.14 Air S

Plancrusand mois

Oxygadso

7.4 Proc

The data instrpurp

1

Lime is us

Flocculant

Sodium m

Copper su

Sodium cysilver;

Lead nitrat

Zinc powd

Diatomaceand

Ferric sulprecipitatio

Supply and

t air is supplhing area. Tinstrument a

sture and par

gen is to be orption (PSA

cess Contro

plant is desacquisition

umentation poses will be

ed to control

t is used in th

etabisulfite (

ulfate is used

yanide (NaC

te is used in

er is used in

eous earth is

lfate and hon circuits.

Oxygen Ser

ied by four rThe remaininair for the prorticles.

supplied to ) plant of 13.

ol Philosoph

signed to inc(SCADA) syand controrecorded on

l the pH in th

he CCD thick

SMBS) is us

d as a catalys

CN) is used i

the leaching

n the zinc pre

s used in the

hydrogen pe

rvices

rotary screw ng three comocess plant.

the leach a.7 t/d capacit

hy

corporate a mstem will con

ol valves. Cn the SCADA

he leaching a

keners, pre-c

sed in the INC

st in the INCO

n the leachi

g and zinc pr

ecipitation cir

e clarification

eroxide are

type comprempressors (2

Instrument a

and cyanide ty.

modern leventrol the proc

Condition moA system.

and INCO de

clarifier and t

CO cyanide

O cyanide de

ng process

recipitation ci

rcuit;

n and precipi

both used

essors. One 2 on duty anair is dried a

detoxificatio

l of automatcess programonitoring of

etoxification c

tailings thicke

detoxification

estruction cir

for the disso

ircuits;

itate filters a

in the co

compressor nd 1 on stannd filtered to

n circuits by

tion. A supermmable logic

equipment

circuits;

ener;

n circuit;

rcuit;

olution of go

s a filtering

pper and a

is dedicatedndby) provideo remove ent

y a pressure

rvisory contrc controllers

for mainte

115

old and

media;

arsenic

d to the e plant trained

swing

rol and (PLC),

enance

PERevDat

18

18

18


8 Proj

8.1 Intro

The stockprecraw w

The undeareaposs

8.2 Site

Theranot– Pu(SW (app

A rou

The consHowtraffi

Site cond

Sect

This high

The loadscons

Sect

FromThe Sora

1

oject Infras

oduction

project conkpile, SAG aious metal rewater dam, p

site layout terground pora is founded sible.

Access Roa

re are two mher from Are

uquio – Iscahof Arequi

proximately 6

ute survey w

From the p

From the p

survey indicstruction freig

wever, road wc.

access fromdition and rep

tion 1: Pisco

road is in aand 18 m lo

road is asphs may be tra

structed.

tion 2: Iscahu

m Iscahuaca road follows

ani - Oyolo C

structure

nsists of anand ball mill gecovery, smpermanent c

takes into acrtal, stockpile

on bedrock

ad

ajor access equipa (southhuaca – Inmpa) follows

607 km).

was undertak

port of Pisco

port of Matara

cated that thght safely toworks are re

m the north ipair work req

– Ica – Nazc

an acceptabong (the proje

halted with mansported th

uaca to Inma

the route cos: Iscahuaca

Cotahuasi – In

n undergrougrinding circu

melting, tailingamp, reagen

ccount site tes and wastek to reduce

roads to Inmh). Access to

maculada site: Matarani

en on the tw

(250km sout

ani to Cotahu

he road requo site would equired in se

s divided intquired:

ca – Puquio –

le condition ect maximum

minimum bridrough this s

aculada Site

ontinues as aa - Selene -nmaculada c

und mine, cuit, cyanidatiogs detoxificants, ancillary

topography ae dumps subcivil costs a

maculada projo site from the (approxima

- Chuquiba

wo potential m

th of Lima) to

uasi and onto

uiring the leabe the road

everal section

to two sectio

– Iscahuaca

adequate tom transport e

dge bearing section if min

a dirt road forHuanacmarc

camp.

crushing, stoon leaching,

ation, paste bservices and

and limits imbject to the aand take adv

ject site; onee north follow

ately 775 kmamba – C

main access

o Iscahuaca a

o the Inmacu

ast effort to from Pisco ns to make

ons for the p

o transport dnvelope).

capacity of nor road wor

r approximatca - Huarcay

ockpile convCCD thicke

backfill, tailind associated

mposed by thabove constrvantage of g

e coming fromws the route ). The road fotahuasi –

roads to site

and onto Inm

lada site.

make accepto Inmaculathis road sa

purpose of d

dimensions o

36 t up to Isrks such as

tely 182 kmsya - Saurica

veyor, coarsning, Merrill

ngs storage f infrastructur

he locations raints. The ggravity flow

m Lima (nortLima – Ica-from Matara

Inmaculada

e:

aculada site;

ptable for shada via Iscaafe for const

describing th

of 5 m wide,

scahuaca. Hriver crossin

s to the projeay - Calacca

116

se ore Crowe facility, re.

of the rinding where

th) and Nazca

ani port a Site

; and

hipping hauca. ruction

e road

4.5 m

Heavier ngs are

ct site. pcha -

PERevDat

18


Afterterratherecross

To dRoad30 - this and

8.3 High

The Suyabe fSpanto thpowethe rHochthe I

1

r Iscahuaca ain at an avee are minimusings that re

date this road works how40 t low bedpreliminary wincluded in t

Signage al

Armco gua

Modificatio

Road wide

Topograph

New road

h Voltage Po

power suppamarca. Thefurnished bynish). Power

he project viaer to the Seleremaining 38hschild betwnmaculada p

and just paerage altitudeum road widtquire wideni

ad has beenwever are reqd trailers requwork plan rehe FS capita

long the road

ardrails requi

on and/or con

ening works;

hical and geo

sub base for

ower Supply

ply to site wae supply of ey the Nationr will be soura 63 km of hene and Pall

8 km to Inmaeen the threproject. The

ast the turn-oe of 4 800 mths down to ng, upgrade

in operationquired in sevuired to carryquired to up

al cost estima

d as there is c

red on road s

nstruction of n

otechnical inv

r identified are

y

as excluded electrical enenal Interconnrced from a 2igh tension olancata operculada. The e projects, aroute of the

off to Selenemasl. In this

3 m, tight cuand repair w

n and used veral sectiony the heavie

pgrade the acation is:

currently very

sections that

new culverts

vestigations;

eas.

from the scergy for the Inected Elect220 kV sub-soverhead porations, and wcapital cost

and Ausencopower line is

e, the road section ther

urves, areas works.

for mediums of the roadst loads duriccess road f

y little;

have steep d

;

and

cope of AuseInmaculada tric System station locateower lines. Twill be steppof this projec was advised

s shown in Fi

becomes difre are no he

with unstab

m sized truckd to make thng constructfrom Iscahua

drop-off;

enco and maproject facili(SEIN – a

ed at CotaruThe power lined down to 6ct was appord on the cosigure 18.1.

fficult with weight limitatiole slopes an

k deliveries the road suitation. A summaca to Inmac

anaged direties is assums per acronse and trans

ne will also p66 kV at Selertioned by IM

st to be assig

117

winding ons but nd river

to site. able for mary of culada,

ctly by med to nym in smitted provide ene for

MZ and gned to


F

T-0001

y 2012

Figure 18.1 - Route of High Voltage Transmission Line

118

PERevDat

18

18

18

18


8.4 Site

Incodistrare l

The Medsubs

The the psubsdrivecubic

8.5 Raw

Rawdam perm(HDP

Watealso

8.6 Pota

A porequpotachlordistr

8.7 Sew

A cedomtreat

1

Power Dist

ming high voibution to theocated at:

Process pl

Crushing p

Paste back

Mine Porta

Camp.

power is theium voltage

station will co

Step-down

Set of pole

Set of light

Motor cont

Lighting an

various planprocess planstation, will bees for the relcle.

w Water Sup

w water for thtotal volume

meability clayPE) liner.

er will be pucontain a de

able Water

otable water irements for ble water prination stagibuted to the

wage Treatm

entral sewagestic waste tment plant.

ribution

oltage powee various rem

lant (multiple

plant;

kfill plant;

al; and

en reduced a motors suc

onsist of:

n transformer

e fuses;

tning arrestor

trol centre; an

nd small pow

t substationsnt drives ande of containelevant equip

ply

e project nee is 458,000y liner follow

mped from tedicated fire

treatment pthe project.

plant. The tges and will e camp, admi

ent

e treatment water will b

r is steppedmote substat

);

t these sub sch as the g

r, pad or pole

rs for lightnin

nd

wer board.

s will be provd other serverized transpoment, light a

eds will primm³ with an a

wed by the in

the dam to thwater reserv

plant will be Raw water f

treatment plproduce 12

inistration bu

plant will bebe delivered

down at thetions located

stations to a grinding mill

e mounted;

ng protection;

vided with loaices. All proortable type.

and small po

marily be souarea of 72,4nstallation of

he process pve.

located neafrom wells loant consists

22 m³ of potauildings, work

e located on to small pu

e main subs around the

low voltage s are suppl

;

ad centres foocess plant s

Each substaower board a

rced from a 00 m². The df a 1.5 mm t

plant raw wa

ar the camp ocated near ts of sand fable water pkshops and p

the project mp pits and

station from project site.

supply for eqlied at 4.16

or the distribusubstations, ation will incland control s

raw water dadam is constthick high-de

ater storage t

and supply he camp wilfiltration, UVper day. Potprocess plan

site at the cd then pump

66 kV to 10These subs

quipment of kV. Each r

ution of electrincluding theude variable

system input/

am. The rawtructed usingensity polyet

tank. This ta

the potablel be pumpedV sterilizatiotable water wnt.

camp. Sewagped to the s

119

kV for tations

460 V. remote

ricity to e main speed

/output

w water g a low hylene

ank will

e water d to the on and will be

ge and ewage

PERevDat

18

18

18

18

18

18

18


8.8 Adm

8.8.1 Main

The mainoffice

Fuel storasecoprev

8.8.2 Labo

A laanalybe p

8.8.3 Acco

A 54pers850 havin

8.8.4 Adm

The medcom

8.8.5 Ware

The

All cbe rearea

8.8.6 Anc

In adfor th

1

ministration

ntenance Fa

maintenancentenance aree.

storage andage and bowondary imperent potential

oratory

boratory willysis for gold rovided for th

ommodation

45-person coon permanepersons. Th

ng the ability

ministration

administratioical room, sputers and p

ehouse

main wareho

hemical comeceived at th

a.

illary Buildi

ddition to thehe project:

Main site a

Plant mess

Plant office

Plant cont

Plant main

Plant reag

Gold room

and Plant S

acilities and

e shop will bea, welding a

d gas stationwser facilitiesrmeable cont leaks to the

be provideand silver s

he mine sam

n

onstruction cent camp brinhe camp wily to expand a

Offices

on building iserver room peripherals.

ouse and sto

mpounds suphe warehous

ngs

e buildings o

access and p

s, sanitary fa

e;

rol room;

ntenance wo

gent storage;

m; and

Site Building

Fuel Storag

be divided inarea, oil/lubri

ns will have s for truck antainment sys

e environmen

d within the amples. In a

mples outside

camp will be nging the totl be of mod

and contract

includes botand sanita

orage yard sh

plied to the sse, and then

outlined abov

plant access

acilities and t

rkshop and s

gs

ge

nto different cants area, s

an approximnd light vehicstem capablent.

process plaaddition to the of the proce

built prior total camp capdular construto suit the re

h single andry facilities.

hall have a to

site and excldispatched t

ve, the follow

security gate

training room

storage;

areas: a waspares stora

mate area of cle filling. The of storing 1

ant that is cis a separateess plant res

o Q1 2013 tpacity duringuction to facequirements

d double occThe buildin

otal approxim

usively usedto the reage

wing ancillar

e houses;

m;

ashing stationage area and

0.015 ha ane fuel storag110% of its c

capable of pre sample pre

stricted area.

o supplemeng constructiocilitate quick of the projec

cupancy officng will have

mate area of

d by the procnts warehou

ry buildings w

n, mine equd maintenanc

nd consist of ge area will hcapacity in o

roviding fire eparation roo

nt the existinn to approxiset-up as w

ct.

ces, training power to s

2.4 ha.

cess plant shuse within the

will be const

120

ipment ce staff

f diesel have a rder to

assay om will

ng 300 mately

well as

room, service

all first e plant

tructed

PERevDat

18

18

18

18

18


8.9 Secu

The to thas pe

The will eofficeappr

8.10 Com

A saupgrcom

8.11 Inter

Interequihavetonnwaretank

8.12 Taili

8.12.1 Gen

The Figu

1

Switch roo

urity

project will be site. This feople who m

process plaenclose the es. Access troximately 36

Personnel

Vehicle ac

Office for s

Two searc

Toilet.

mmunication

atellite systemraded to catemunication r

rnal Plant R

rnal plant roapment and v

e been set ae maintenan

ehouse haveis located at

ngs Storage

eral

tailings damre 18.2.

om buildings

be surroundefence is des

may be un-aw

nt will be proplant, plant

to the plant s6 m² in area

access via t

ccess via boo

security pers

ch rooms; an

ns

m currently per for the in

repeaters wil

Roads

ads have beevehicles useat 8m, whichnce crane to

e been set att the plant sit

e Facility

m is located

(containerize

ed by a singligned to det

ware of the a

ovided with workshop an

security areaand will com

turnstile;

om gate;

sonnel;

d

provides voincreased opel be used for

en sized to sd to deliver

h allows for o have accet 13.5 m to ste and fuel w

to the north

ed type).

e 3 strand wer livestock ctivities occu

a designatednd warehousa will be cont

mprise:

ce and dataerating load.r the surface

suit traffic assconsumablea clearance ess to all a

suit semi-traiwill be pumpe

h of the proc

wire fence, wiand animalsurring within

d single secse, laboratortrolled at the

transmissio. In addition operations.

sociated withes and reage

width of 6 mareas of theler traffic de

ed from this l

cess plant in

ith a single gs from enterinthe site.

urity fence. Try, crib roome gatehouse.

ons to site. Tto this the

h the plant ments for the pm. This is a

e plant. Turnlivering consocation.

n a natural v

guarded entryng the site, a

The securitym and metall. The gateho

This system current VHF

maintenance plant. Road dequate for

ning circles sumables. Th

valley as sho

121

y point as well

y fence urgical

ouse is

will be F radio

mobile widths an 80 at the

he fuel

own in

PERevDat

18


Figur

The a finto prprevpipespond

8.13 Wate

The wideobjec

The first of thfinal

1

re 18.2 - Tailing

dam has beal volume ofrevent seepaent catchmes are installed at the base

er Managem

water manae range of clictives of the

Provide a re

Facilitate min

Provide sedi

Collect and tand

Protect mine

water manaiteration that

he water maclosure.

TopsoiWaste Dump

gs Storage Fac

en designedf 7.72 Mm³. Tage to the e

ent water enteed below theement of the

ment Plan

agement planmatic conditwater mana

liable water s

ning of the or

iment control

treat contact

e infrastructur

agement plant will be optinagement p

TSF

RawWate

Dam

il p

cility in relation

d in two stageThe dam willenvironment.ering the TS TSF to colleTSF wall for

n must facilitions, while agement plan

supply to the

re deposit by

l;

water that w

re during ext

n presented mized during

plan consider

w er m

Crus

n to the Proces

es, with an inl be lined by Rain waterF. In additionect groundwaquality mea

tate the opeat the same tn will be to:

plant;

y managing th

would otherwi

reme flood e

in summaryg the enginered the full e

Mine WasDump

shing Plant

s Plant (lookin

nitial storagea 1.5 mm H

r diversion cn to this perfater flows, asurement.

eration of thetime protecti

he inflows an

se impair wa

events.

y form in thiseering of the evolution of

ste

Proces

ng east)

e volume of 3HDPE impermhannels will forated 200 and these rep

e mine deveng the enviro

nd decantatio

ater quality of

s section muproject. Thethe mine fro

Internal AccRoads

ss Plant

3.72 Mm³ anmeable plast

be construcand 300 mm port to the se

lopment throonment. The

on of the mine

f receiving st

ust be viewee conceptualom construc

cess

Mine WaDump

122

nd then tic liner cted to HDPE

eepage

ough a e prime

e;

reams;

d as a ization

ction to

aste

PERevDat

18

18

18

18

18


8.13.1 Drai

The cons

All stthe t

The reag

All mprop

8.13.2 Clea

Devevalleopendesig

8.13.3 Sedi

A segeocof he

A sefacilito en

8.13.4 Taili

The genewithiplant

8.13.5 Proj

The

1

nage

plant site struction and

Process a

Hard stand

torm water railings storag

plant site prent spillage

maintenance per disposal o

an Water Div

elopment of ey around then channels. gned to conv

imentation a

edimentationchemical anaeavy metals.

eepage pond ty, a pond w

nsure cyanid

ngs Storage

TSF will seerated withinn the TSF wt.

ect Site Wat

overall proje

will be sha operation. D

rea runoff; a

ding runoff.

unoff within tge facility.

rocessing arwill be direct

and chemicof wastes.

versions

the TSF will e dam. The wAs with all d

vey the 100-y

and Seepag

pond has alyses indicaTherefore n

was includewas included

e and heavy

e Facility

erve two keyn the catchmwill serve as

ter Balance

ect site water

aped, gradeDrainage of t

nd

the plant are

reas will be ted to area s

cal storage

require the water will bediversion anyear peak ins

ge Ponds

been includeate that the wo water treat

ed at the basin order to m

y metals do n

y roles in thent of the pra process w

r balance is s

ed and sheehe site will fa

ea is conside

bunded, withsump pumps

areas will b

diversion of diverted arod collection stantaneous

ed at the bawaste rock istment plant w

se of the TSFmonitor and mnot enter dow

he managemrocess plant

water reservo

shown in Fig

eted to proall into two ge

ered to be po

h concrete fand pumped

e suitably b

clean rain wound the tailiditches at tdischarge w

ase of the ms not acid gewas included

F. Whilst the measure anywnstream wa

ment of watwill report to

oir and will be

ure 18.3.

ovide trafficaeneral categ

olluted and w

loors. All prod back into th

bunded to al

water run-off ngs dam andhe mine, thi

with an adequ

mine waste enerating withd.

TSF will be y seepage orater systems.

ter at the mo the TSF. Se recycled b

able areas gories:

will be channe

ocess, chemhe process p

low collectio

in the tailingd flow by gras diversion uate freeboa

dump. Prelih minimal le

a fully plastir sub-surface.

mine. Firstly, Secondly, theack to the p

123

during

eled to

mical or plant.

on and

gs dam avity in will be

ard.

minary aching

c lined e flows

runoff e pond rocess

PEMN00012-RPT-000Rev: 0 Date: 11 January 2012

Figur

1

2

re 18.3 - Average Site Water Balance (YYear 1)

124

PERevDat


In thshowthe pand testwcouldthe p

1

e latter stagewed that the purposes of discharged

work is requd be removeprocess plan

es of the FSplanned undthe FS it waunder controired to confi

ed and the wt requiremen

, drilling andderground mas assumed olled conditioirm this assu

water derivednts.

d testing condmine would p

that this waons to surroumption. If pd from under

ducted for hyproduce a sigater was of sunding areasproven, it is rground mini

ydrogeologicgnificant quasufficient quas. In the deslikely that thng operation

cal characterantity of wateality to be pusign stages he raw watens can be us

125

rization er. For umped further

er dam sed for

PERevDat

19

19

19

19


9 Mar

InmaOverof goprice

9.1 Refi

9.1.1 Refi

Therdista

9.1.2 Com

Costfees for sgros

1

rket Studie

aculada will r the life of thold and 26.5 es set by the

ning

nery Option

re are numeance from the

Johnson M

Royal Can

Argor-Hera

Cendres &

Metalor —

PAMP SA

Valcambi —

mmercializat

ts for the offand refineryimilar operats metal value

es and Co

produce andhe mine, the Moz of silveLondon Bull

ns

erous refinee project.

Matthey — B

nadian Mint —

aeus — Men

& Métaux —

— Marin, Switz

— Castel Sa

— Balerna, S

tion Costs fo

fsite commey treatment ations in Perue.

ontracts

d sell a goldprocess pla

er. The doré lion Market.

eries in Euro

rampton, Ca

— Ottawa, C

ndrisio, Switz

Biel-Bienne,

zerland and

an Pietro, Sw

Switzerland

or Doré

ercialization oand metal retu. The overal

d and silver nt will produwill be sold IMZ will not

ope and No

anada and Sa

Canada

zerland

Switzerland

North Attleb

witzerland

of the doré, tention chargl cost over th

doré to gence doré barsto a third-pahedge its go

orth America

alt Lake City

oro, United S

including trages were benhe life of min

nerate revens containing arty refinery, ld or silver p

a that repre

, United Stat

States

ansportationnchmarked b

ne is approxi

ue for the pa total of 0.7typically basroduction.

esent the sh

tes

, insurance, based on comately 1.2%

126

project. 78 Moz sed on

hortest

agent ntracts

% of the

PERevDat

20

20

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0 Env

The studynot ibelie

0.1 Lega

The mainentitresooblig

The the LreguExplArea(Lawthat Mininvario

0.2 Envi

0.2.1 Intro

SuyaThe curreon th

Basethe psociaprojedeve

0.2.2 Phys

The depa

The 12.5 in Apends870

Two withi

1

vironment

information y (EISA) worinvolved in t

eves this sum

al Framewo

legal framewn articles thalement to a hurces are a

gations to the

regulations tLegal Framelates the Eoitation (Law

a Law (Law 2w 27314); theregulate the ng Subsectoous sectors t

ironmental I

oduction

amarca contEIS was sub

ently being ehe document

eline studies project. Thisal impacts oects direct aelopment of t

sical Enviro

Property is artment of Ay

climate is cºC. There a

pril (maximums in October mm. The pre

air and noin the area im

al and So

contained inrk completedthe executio

mmary to be

rk

work applicaat regulate thealthy envira national hee environmen

that form theework of the EIS approvaw 26821); th26834); the We General Lacitizen partic

or (Supremehat are used

Impact Stud

tracted SVS bmitted to theevaluated by t before the E

were compls informationf the projectand indirectthe project’s

onment

located in yacucho at a

cold to mildare two markm rainfall of (minimum ra

edominant w

se quality mmmediately s

cial Studie

n this sectiond by SVS Ingon of the EISa fair represe

able to the Ethe environmronment, anderitage, regunt.

e basis of theNational Enl process; te Wild ForesWater Resouaw of Nationcipation proc

e Decree 02d as referenc

dy

Ingenieros e Ministry of this entity. A

EIS permit is

eted to descn was then pt were detert areas of environment

the district an approxima

, with an anked seasons,213 mm in F

ainfall of 5 mwind direction

monitoring casurrounding t

es

n is a summagenieros S.AS but has rentation.

EIS is based mental aspecd articles 66,ulating their

e EIS are thenvironmental the Organicst and Faunurces Law (L

nal Cultural Hcess, such as8-2008-EM)

ces for the pr

S.A.C. to prEnergy and

At least one rs approved, s

cribe the natuprocessed amined. This social and tal managem

of Oyolo, pate height of

nnual averag, the rainy seFebruary), an

mm in July). Ts are east no

ampaigns wethe project a

ary of the enA.C. on behaeviewed the

on Peru’s 1cts are: Arti 67, 68, and exploitation

e General EnManagemen

c Law for Sa Law (Law Law 29338);Heritage (Laws the Citizen. There are

reparation of

repare an E Mines (MINround of revisometime du

ural and sociand analyzed

analysis alloenvironmen

ment plan.

province of 4,500 masl.

ge temperateason, whichnd the dry seThe total accortheast and

ere carried ond one statio

nvironmentalalf of Suyamae work comp

993 Politicacle 2.22, wh69, which se

n and estab

nvironmentalnt System (LSustainable

27308); the the Generaw 28296); an

n Participationalso envirothe EIS.

IS for the InEM) in Septeiew and com

uring 2012.

al environmed. Potential eowed the es

ntal influence

Paucar del

ture ranging h starts in Noeason, which

cumulated rai southeast.

out. Two staon was place

l and social arca. Ausencpleted to dat

al Constitutiohich sets foret forth that nlishing the S

Law (Law 2Law 28245),Natural Res

e Natural Proal Solid Wastnd other stann Regulation

onmental gui

nmaculada pember 2011

mments is ex

ent associateenvironmentstablishmente as well a

Sara Sara

between 9ovember andh starts in Mainfall in one y

ations were ed near the t

127

impact co was te and

n. The rth the natural State’s

28611), which source

otected te Law ndards n in the des in

project. and is

pected

ed with tal and of the

as the

in the

.5 and d ends ay and year is

placed own of

PERevDat

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Huanthose

The occa

The basin

Two statiosurfaStanmicrothe a

DeptchargrouQua

0.2.3 Biolo

The betwmasecolobush

The beingconsspecwhicoffse

1

ncute (town e established

project faciliasional rocky

project is locns, which are

surface wateons in the firace water qndards for Wo-basins exharea.

th to grounracterized bynd water qulity Standard

ogical Envir

area of stuween 4,000 ml and 5,000 mogical categhes, puna so

flora, fauna g recorded i

servation, wicies have bech enables, tet the potenti

closest to thd by current

ties will be loy outcrops an

cated in the e in the high

er monitoringrst campaignuality values

Water, categohibited a mo

d water rany moderatelyuality results

ds for Water,

ronment

udy is locatemasl and 4,3masl, corresories are red, wetlands,

and aquaticncluding Vulth a further

een recordedhrough the iial impact tha

he project). APeruvian reg

ocated on esnd wetland pa

Patarí Gorgbasin of the

g campaignsn and 12 sas are within ories 3a andoderately aci

nges betwey alkaline tos reported acategories 3

ed at the Su300 masl andponding to th

ecognized: sand farm ar

c biota in theltur gryphusseven spec

d at various mplementatiat the project

All data collegulations.

ssentially unatches.

e (20.79 kmOcoña Rive

s were carriempling statiothe values

d 3b. The wad to modera

en 5.3 m ao strongly alare within th3a and 3b.

ub-Tropical d Subtropicahe Puna Ecocrubland or

reas.

e project area"condor", a

cies being enother locatioon of appropt can cause o

ected at thes

occupied ter

2) and Queller, in the Pac

d out in thesons in the se

establishedaters of the ately alkaline

and 40.0 m lkaline charahe range st

Sub-Alpinel Alpine very

o-region (3,8steppe of g

a were assespecies in ondemic to Pons outside priate managon their popu

se stations r

rrain compris

opata Gorgecific watershe

se micro-basecond. Almo in the EnvPatarí- and

e character w

and groundacter. Almosipulated in t

humid bleaky humid Tund00 masl andgramineae, s

ssed with 24ne of the hig

Peru. Howevthe Departm

gement progulations.

reflect levels

sing meadow

e (8.05 km2) ed.

ins, at 10 saost all the recvironmental Q

Quellopata which is typi

d water quast all the recthe Environ

k upland lifedra between

d above) whescrubland an

4 sensitive sghest categoer, all 24 ofment of Ayarams, to red

128

within

ws with

micro-

mpling corded Quality Gorge

ical for

ality is corded mental

e zone n 4,300 ere five nd low

species ories of f these cucho,

duce or

PERevDat

[1]

27

[2]

Pe

[3]

bio

[4] w

[5]

tra

[6]

Re

[7]

ad


Table

BioG

Flora

Mam

Birds

Rept

Carrillo, N. & Ic7.

León, B., J. Roeru. Rev. peru bi

Pacheco, V., Rol. 16(1): 005 - 0

Supreme Decrewith commercial

Supreme Decransportation or e

IUCN. 2011. Liesources. Interne

CITES. 2011. dress: http://ww

1

e 20.1 - List of S

ological Group

a

Acau

Gen

Opu

Pere

Sen

Xen

mmals

Akod

Calo

Hipp

Leop

Lyca

Pum

Vicu

s

Bub

Bute

Colib

Falc

Falc

Phal

Pho

Tyto

Vultu

tiles Liola

Liola

cochea, J. 1995.

oque, C. Ulloa Uiol. Edición Espe

R. Cardenillas, E032.

ee Nº 043 - 2006l purposes is pro

ree Nº 034 - 2exportation with c

ist of Species. Ret address: http:

The CITES Speww.cites.org.

Sensible Flora

Specie

ulimalva richii

ntianella dianth

untia floccose

ezia coerulesc

ecio nutans

ophyllum staff

don juninensis

omys sorellus

pocamelus an

pardus coloco

alopex culpae

ma concolor

ugna vicugna

o virginianus

eo polyosoma

bri coruscans

co femoralis

co sparverius

lcoboenus me

enicopterus ch

o alba

ur gryphus

aemus melano

aemus polystic

Lista taxonómic

Ulloa, P.M. Jørgecial 13(2): 971

E. Salas, C. Tell

6 AG. Categorizohibited. Lima -

004 AG. Categcommercial purp

Red List of Thre://www.iucnredlis

ecies. Conventio

and Fauna

es L

hoides

cens

ffordiae

s

tisensis

olo

us

egalopterus

hilensis

ogaster

ctus

ca preliminar de

gensen, N. Pitmpp.

o, & H. Zevallos

zation of wild florPeru.

gorization of wildposes is prohibit

eatened Speciesst.org

on on the Intern

Con

National Legislation[4],[5

VU

VU

VU

EN

los reptiles vivie

man y A. Cano (

s. 2009. Diversi

ra threatened sp

d fauna threateted. Lima - Peru

s of the Internati

national Trade o

nservation S

5] IUCN[6]

VU

VU

VU

entes del Peru.

eds.) 2007d. Lib

dad y endemism

pecies, and their

ened species, au.

onal Union for t

of Wild Fauna a

Status

CITES[7

II

I

II

II

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province of P

130

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the propertymunity.

s acquired mof Huallhua

Huancute.

evelopment,

valuation

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rol and mitigg monitoring

environmenta

district of Small village of

organizations

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ay need to b

munities of r community-

ence:

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villages of Perms of empcution area.

d on surface prietors of the

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y rights are i

mining easea, and also

at least two

ential foreseeages, comprpected respo

gation measg plans thaal policy of S

San Franciscf Huancute is

s of both tow

e relocated;

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land of the e village of H

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o families fro

eable enviroised the systonse of the e

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n, and Cascasupport to th

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ration officese communityhe lands des

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om the villag

onmental imptematic analyenvironment

identified in ly with curr

cayco, provind

e expect to

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ara, based oheir towns, a

of Huallhua a

s of the Miniy assembly aignated for g

grazing lan

of rural lanongs to ind

e of Huancu

pacts (positivysis of the pto the projec

an environmrent environ

131

nce of

obtain

nd San of the

on their as they

and on

istry of assigns grazing

ds are

nd that dividual

ute will

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mpacts are a

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ater quality;

ality from soil

es in soil use

flora.

as follows:

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land current

settlement of

r relocation o

nt Plan

ment Plan (Egate possiblthese meas

ment.

nent monitorment of ident

plan aims nd agreemeons performll be designe as follows:

procurementproprietors);

ing of local w

consultations, and perma

ental and so

the EIS docate significaed by the stu

s of moderat

ndscape;

e vibration lev

ge network;

compaction

e; and

ed job positi

tly available

f families fro

of archaeolog

EMP) providee impacts th

sures is desi

ring activitiestified impact

at enforcents signed

med by Suyaned for prev

t of easeme

workers);

(strengthennent attentio

ocial monitori

cument showance” or “littudy.

te significanc

vels;

;

ions for loca

for grazing;

m the village

gical sites.

es the envirohat might beigned to ens

s of the projets and the e

ing compliawith neighbmarca and

vention and

nts (purchas

ning of Suyon given to cl

ng;

ws that the ptle significan

ce are descri

al inhabitants

e of Huancute

onmental mee generatedsure protectio

ect for each effectiveness

ance with boring commits contractomitigation o

se of lands,

yamarca imalaims and co

potential impance”. No po

ibed below:

s, especially

e; and

easures nec by typical on of the ph

facility. It prs of the mit

legal regulmunities durinors. Based oof identified

compensatio

age by meaomplaints);

132

acts of otential

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essary project

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ations, ng the

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on and

ans of

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20


0.2.10 Clos

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gressive Clo

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Physical aareas and

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as been anticyears of ope

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s will be execr activities ar

demobilizati

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disposal

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s.

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spects, recoe.

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vestments wibalance amo

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the operativd.

oval of themain for pos

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ll decrease iounts will be

zations; and

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mponents ar

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S that ensurevian regulatio

to ensure averified by

and stockpi

cies, adaptaative high Asfactory conntaining pre-p

re described

f the mine on

infrastructuremonitoring is

with materiaste generate

ation of reco

ps, top soil s

manner in thhrough susta

133

es that ons for a post-

future

led, to

ation to Andean

ditions project

next:

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overed

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lic Participa

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First Workattendees March 201

Second W29 attendeJuly 2011)

Participativdry season

Participativ

Public Aud

results of therdination with

tiatives imple

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11);

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Simultaneouse communitie

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ecember 20

ticipation proa, the local po

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. N° 028-200tive participan this contex

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sly held with es of Huallh

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11).

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lamation of ted by Suya

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08-EM, a puation of the xt, the follow

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the Impact Aua and Hua

sting of wate

6 and 17 July

positive, and d local autho

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the project aramarca for astable with rerate negative

blic participapopulation

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er quality mo

y 2011); and

all the worksorities.

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ation processthat is directions were he

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Study, with 4ectively (23 a

onitoring duri

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134

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41 and and 24

ng the

held in

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1 Cap

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1.1.2 Cap

TablInmano aplantcamproje

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1

pital and O

ital Cost Su

eral

capital cost ions.

following pa

Ausenco P

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Suyamarc

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ital Cost Es

e 21.1 provaculada projeallowances fot, TSF, rock p. The estimect will be de

following pa

Estimate w

Estimate iexcluded. feasibility r

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timate Sum

vides the suect. The cosor escalation

waste dumpmates are coeveloped on a

rameters and

was based on

is only for CThese pas

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Cost Estim

ct has been

repared the c

nd tailings tre

cture and e and high-v

ommodation

ater dam;

ess roads;

ad and plant

ating to the p

ent; and

t and infrastr

ply including

mary

ummary ofts are expre

n. The estimaps, raw wateonsidered toan EPCM ba

d qualificatio

n October 20

Capex startinst expenditues and stand

mate

estimated b

capital cost e

eatment;

services woltage subst

camp;

site bulk ear

process plan

ructure.

the high-volt

the overallssed in Octoated costs iner dam, first o have an ovasis.

ons are made

011 prices an

ng on Januaures includedby costs;

based on the

estimate:

with the exation;

rthworks; and

t and infrastr

tage substati

capital cosober 2011 Unclude all mifills, buildingverall accura

e:

nd costs;

ary 2012; Cae mostly ex

e scope defin

xception of

d

ructure outlin

ion; and

ts (Capex) nited States ning, site prgs, road woracy of ±15%

apex prior toxploration,

ned in the pr

the high-v

ned above.

estimated fDollars. The

reparation, prks and perm

% and assum

o January 2pre-feasibilit

135

revious

voltage

for the ere are rocess

manent me the

2012 is y and

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Data

The and variadate weat

Tabl1 JaThe EPCcapit

Table

Pro

Pro

Hig

Min

No

Te

Ind

Ow

1

The estima

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o Fina

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a for these es

Feasibility

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Topograph

Geotechni

Budgetary

Budgetaryworks;

Data from

Informatio

contingencyare not cov

ations from tescalation

ther or adver

e 21.1 provnuary 2012 capital cost

CM labor andtal cost comp

e 21.1 - Overall

ocess Plant

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gh Voltage Po

ne

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mporary Facil

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wners Costs

ate excludes

ploration and

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pitalized inter

calation;

plication of le

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stimates hav

level engine

;

hical informa

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y equipment p

y unit costs

recent comp

n provided b

y of $24.9 Mvered by anyhe Estimate of 1 Octob

rse political o

vides an ovuntil ramp-uestimate wa

d fees includponent as pe

Project Capita

Descripti

nfrastructure

wer Supply

ant Infrastructu

ities

s:

developmen

ed charges (e

rest and stan

vies, taxes o

community re

ve been obtai

eering design

ation obtained

ation;

proposals;

from local

pleted similar

by Suyamarc

(7.8% of ovy project acc

basis, escaer 2011, abor regulatory

verall summp is complet

as developedded within ter the JV agr

al Costs by Are

on

ure

nt drilling pos

e.g., fees, co

ndby fees fro

or customs d

elations (ass

ined from nu

n;

d from site s

contractors

r studies and

a.

verall project curacy provi

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developmen

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ea

T

st January 20

onsultants, et

om third party

uties; and

umed to be i

umerous sou

urvey;

for civil, co

d projects; an

CAPEX) cosion. Thesed constructioin industrial

nts.

capital costscale produan EPCM prcosts. This tlined in Sect

Total Cost ($M)

88.9

12.0

13.5

69.6

36.6

11.5

35.1

23.3

012;

tc.);

y lenders;

in the owners

rces includin

oncrete, stee

nd

vers change would incluon labor cosl relations, m

ts for the pction commeroject executtable does tion 4.2.

s cost estima

ng:

el and mech

es which mayude exchangsts above themarket cond

project startiences in Q1tion basis, wnot show th

136

ate).

hanical

y arise ge rate e base ditions,

ing on 2014.

with the he IMZ

PERevDat

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Con

Gra

1.1.3 Mini

Capeby S

Table

CAP

OPE

The 21.3

Table

Co

Co

Dev

Ven

Min

Un

Ene

Air

Pas

Min

Ge

Sill

1

ntingency

and Total

ng Capital C

ex and operauyamarca an

e 21.2 - Split Be

PEX

Min

Min

EX

Sto

Ve

Min

mine initial .

e 21.3 - Mining

ntract Mine De

ntract Mine De

velopment Ha

ntilation Infras

ne De-waterin

derground En

ergy Costs As

Supply and D

ste Backfill Dis

ne Mobile Equ

neral (commu

Pillar Provisio

Descripti

Cost Summ

ating costs (Ond summariz

etween Mining

ne Infrastructu

ne Preparation

opes Preparat

in Developme

ning

Capex sum

Capex Cost Su

Descriptio

evelopment

evelopment S

aulage

structure

g Infrastructur

ergy Distribut

ssociated with

Distribution

stribution

uipment

unications, sof

on for Main Le

on

ary

Opex) for thezed in the fol

Capex and Op

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Ram

Rais

Main

n

By-P

Rais

Sub-

tion Acce

Draw

ent Rais

Hea

Stop

mmary (exclu

ummary

on

Support

re

ion System

Development

ftware, tools e

evel

T

e mine were lowing in Ta

pex

mps

se Borers

n Levels

Passes

ses

-Levels

ess to Stopes

wpoints

ses

dings

pes

uding sustain

T

t

tc.)

Total Cost ($M)

24.9

315

sub-divided ble 21.2.

ning capital

Total Cost($M)

9.65

5.16

0.56

0.14

0.84

5.50

0.74

0.60

0.28

19.7

2.03

4.12

based on in

cost) is sum

nformation su

mmarized in

137

upplied

Table

PERevDat

21

21


Min

Min

Min

Pas

Tot

1.1.4 Proc

The as o

Table

Prim

Sto

Grin

Lea

CC

Mer

Gol

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Sust$104ongo

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1

ne Offices and

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tal

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process planutlined in Se

e 21.4 - Process

mary Crushing

ckpile and Re

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aching

D and Solutio

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d Room

toxification and

agents

ter Supply and

Supply and D

nt Control Sys

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tal

taining Cap

taining capita4 M over theoing tailings d

allowance ofess plant eq

costs associ

Descriptio

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eparation Roo

orkshop

ant

Capital Cost

nt capital cosection 17. The

s Plant Capital

Des

g and Overlan

eclaim

n Managemen

d Tailings Dis

d Distribution

istribution

stem

, lighting, dies

ital Cost Su

al requireme mine life. Tdam lifts, pro

f $50,000 peuipment repl

iated with clo

on

ms

om

t Summary

st was derivee costs per a

l Cost Summar

cription

d Conveying

nt

posal

(excluding da

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ummary

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er annum hlacement.

osure and pr

T

ed based on area are sum

ry

m cost)

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has been ma

rogressive re

Total Cost($M)

0.58

0.06

2.81

16.8

69.6

the flowshemmarized in T

T

eriod is preseelopment of and closure c

ade for sust

ehabilitation w

et and unit oTable 21.4.

Total Cost ($M)

12.3

2.97

19.8

12.3

8.69

11.3

2.22

4.30

4.80

2.84

3.07

1.24

3.10

88.9

ented in Tabthe Angela Vcosts.

taining capit

were supplie

operations se

ble 21.5 andVein to prod

al associate

d by Suyama

138

elected

d totals uction,

ed with

arca.

PERevDat

21

21

21


Table

Mine

Proceand Infras

TSF progrcapita

Progrhabili

Closu

Total

1.2 Ope

1.2.1 Gen

The prockey c

The fluctu

1.2.2 Sum

A su

Table

Unde

-

-

-

Proc

Gene

TOTA

The

1

e 21.5 - Sustain

($M)

ess plant

structure

ressive al

ressive Re-itation

ure

l

rating Cost

eral

operating coess plant thcost centers

operating cuations. The

mmary

mmary of the

e 21.6 - Unit Op

Pa

erground mine

Cut and Fill:

Sub Level Sto

Average:

essing

eral & Adminis

AL

major comm

Diesel fue

Power cos

Labor cost

ning Capital Ex

2014 20

18.9

0.05

-

0.3

19.25

Summary

ost (Opex) esroughput baand all figur

costs presen estimate is

e Inmaculad

perating Cost S

arameter

e

oping:

strative

mon assumpt

l price:

st:

ts provided b

xpenditures

015 2016

14.9 15

0.05 0.0

1.5 1

0.09 0.0

16.54 17.0

stimate was sis of 1,279es are as of

nted do not considered F

a Opex is sh

Summary (base

ions used fo

$1.05/l

$0.07/kWhr

by Suyamarc

6 2017

5.4 12.3

05 0.05

.5 1.5

09 0.09

04 13.94

developed in,660 tonnes the 4th quar

include alloFeasibility St

hown in Table

ed on 3,506 t/d

Unit

$/t ore milled

$/t ore milled

$/t ore milled

$/t ore milled

r the cost es

ca are repres

2018 2

15.8

0.05

1.5

0.07

17.42

n United Staper year. T

rter of 2011 (

owances fortudy level wit

e 21.6

milled)

d

stimation are:

sentative of s

2019 202

4.0 0

0.05 0

1.5

0.15 0

13

5.7 14

tes dollars (Uhe costs we(calendar yea

r escalation th an accura

Value

44.5

32.2

39.1

25.1

8.70

72.9

:

similar opera

0 Total

0.5 81.8

.05 0.35

- 7.50

0.5 1.29

3.3 13.3

.35 104.2

US$) on an aere divided inar).

or exchangcy of ±15%.

tions in the a

139

annual nto the

ge rate

area

PERevDat

21


1.3 Basi

The basebasedata

Table

Mine

Mine

Mine

AuxInfra

Mine

The deteplant

Table

Proc

Pow

Rea

Con

Main

Sup

1

Three shifand techni

is of Estima

mining costsed on fixed aed on the an

used for the

e 21.7 - Derivat

Cost Cate

e Labor

e Developmen

e Support

iliary Serviceastructure

e Mobile equip

plant operatrminations wt flowsheet. T

e 21.8 - Derivat

Cost Cate

cess and G&A

wer

agents

nsumables

ntenance Ma

plies

fts on 14 dayical personne

ate

s estimate wand variable nnual produce Opex are s

ion of Mine Op

egory

nt

es and Mine

pment

ting and G&were based The sources

ion of Plant Op

egory

A Labor

aterials and

ys on followeel commuting

was developecomponents

ction and theummarized i

perating Cost

Manning scsimilar conprovided by

Based on bthe area, eSuyamarca

Based on rstudy and s

Based onoperations,

Based on specificatiobenchmarkSuyamarca

&A costs estion fixed and of data used

perating Cost

Manning scsimilar opeSuyamarca

Consumptiorate supplie

Consumptiobenchmarkquoted byprovided by

Consumptiooff similar prices as q

Estimated band Ausenc

ed by 7 days g from Lima

ed from a nums relating to ye production n Table 21.7

Source

chedule estimntract operatiy Suyamarca.

benchmarking equipment effica.

recommendatsupport standa

n mine des and MICSAC

mine designons from king similar oa experience.

mate was dd variable cod for the Ope

Source

chedule estimerations in thea.

on from the loed by Suyama

on rates bk from operay suppliersy Suyamarca.

on rates calcoperations anuoted by supp

based on benco experience

off rotation for local villa

mber of souryearly total afrom each

7.

of Cost Data

ated based onons in the a

similar contraciency and ra

ions from the ards provided

sign, benchmC experience.

n, quotationsequipmen

perations and

eveloped froomponents ex are summ

of Cost Data

ated based one area and ra

oad estimate arca.

based on ating plants,and compar

culated and/ond Ausenco epliers.

nchmarking sime.

for all producges.

rces. Cost deamounts conmining meth

n benchmarkiarea and rat

act operationsates provided

geomechanicby Suyamarc

marking simi

and technicnt provided MICSAC a

om a numberelating to o

marized in Ta

n benchmarkites provided

and power u

testwork aunit prices

red with cos

or benchmarkexperience; u

milar operatio

ction, mainte

eterminationsnverted to unhod. The sou

ng tes

in by

cal ca.

lar

cal rs, nd

er of sourcesore throughpble 21.8

ng by

nit

nd as sts

ked nit

ons

140

enance

s were nit cost urce of

s. Cost ut and

PERevDat

21


Assa

Labo

Cam

G&A

1.4 Mine

MineMICSequiactiv

Inclu

The in Ta

Table

Mine

Grou

Minin

Grou

Hauli

Paste

Powe

Powe

Venti

Dewa

Labo

Tota

1

ay and

oratory

mp

A Incidentals

e Operating

e operating cSAC, cost pment suppl

vities and pro

uded within th

Cost and and gener

Variable co

Personneloverheads

overall mininable 21.9 and

e 21.9 - Unit Co

Development

nd Support fo

ng Operations

nd Support fo

ing from Ore P

e Backfill

er Supply Main

er Consumptio

ilation

atering

or Costs

l Unit Cost - C

Metallurgical

Cost

costs have bof materialsy and servic

oduction plan

he operating

labor insuraral considera

ost of mining

cost for sus.

ng costs assd Table 21.1

ost for Cut and

Ite

t

or Mine Develo

or Mine Operat

Pass to Mine E

ntenance

on

Cut and Fill

Estimated operations

Number ofmanning scprovided by

Estimated and estimaoperations

been estimats supplied

ces. The open for the perio

costs are:

nce for the tions in the m

g equipment

upport areas

sociated with 0 respective

Fill Mining (ba

em

opment

tions

Entrance

based on inand Ausenco

f persons in chedules. Camy Suyamarca.

based on coated costs basand Ausenco

ed for unit afrom the Srating cost pod.

mine labor, market for un

stated as fue

s such as g

both cut andely.

ased on 3,506 t

dustry benchexperience.

the camp cmp costs per

osts supplied sed on benchexperience.

activities basSuyamarca er period is o

according tonderground m

el, spare par

geology, saf

d fill and sub

t/d ore mined)

marking simi

calculated froperson per d

by Suyamarhmarking simi

ed on inputsdatabase aobtained by

o the referenmining opera

rts and consu

fety and pla

b level stopin

Unit Cost

2.49

2.13

11.11

13.42

2.45

7.07

0.27

1.42

0.64

0.08

3.39

44.47

lar

om ay

rca lar

s from Suyamnd quotatiomultiplying th

nce wage strations;

umables; and

anning inclus

ng are summ

141

marca, ns for he unit

ructure

d

sive of

marized

PERevDat

21


Table

Mine

Grou

Minin

Grou

Hauli

Paste

Powe

Powe

Venti

Dewa

Labo

Tota

1.5 Proc

Thesbattefacili

Opeincluvehicthroucosts

Reagtestw

Powlist a

Annucapit

Inclu

1

e 21.10 - Unit C

Development

nd Support fo

ng Operations

nd Support fo

ing from Ore P

e Backfill

er Supply Main

er Consumptio

ilation

atering

or Costs

l Unit Cost - S

cessing Cos

se operatingery limits for ties and con

rating costs ude labor, pcles and mough to the gos, camp, off-

gent and cowork complet

er consumptand assumed

ual operatingtal cost estim

uded in the p

Labor for activities d

Labor for plant and s

Direct opemaintenan

Fuels, lubrplant mobi

Cost for Sub Le

Ite

t

or Mine Develo

or Mine Operat

Pass to Mine E

ntenance

on

Sub Level Sto

st

costs are bthe determintinue throug

were sub-divpower, reageobile equipmoldroom, inclsite office, a

onsumable ted, and also

tions for pland to remain c

g costs for mmate for proc

rocess plant

supervision, directly assoc

operating ansupporting in

eration of thence materials

ricants, tires ile equipmen

evel Stoping Mi

em

opment

tions

Exit

oping

based on thnation of theh to tailings d

vided into plents and co

ment, metalluluding plant snd miscellan

consumptiono benchmark

nt areas and constant over

maintenance cess plant.

t operating co

managemeciated with th

nd maintaininnfrastructure

e processings;

and maintent and light ve

ining (based on

e process fle process opdischarge int

lant and genonsumables,rgical testingservices. G&

neous costs.

n rates werked with plan

G&A buildinr the life of o

spares and

ost estimate

nt and reporhe processin

ng plant mo;

g plant, inclu

nance materehicles;

n 3,506 t/d ore

owsheet as erating coststo the TSF.

neral and adm maintenancg, and cover&A costs incl

re estimatedts that opera

ngs were calperation.

consumable

are:

rting of onsitg plant;

bile equipme

uding all fuel

rials used in

mined)

Unit Cost

6.01

5.64

5.28

-

2.35

7.07

0.27

1.42

0.64

0.08

3.39

32.15

described is commence

ministrative ce spares ar plant areasude labor, lig

d based onate with simil

culated from

es were estim

te organizati

ent and light

s, reagents,

operating a

n Section 17e from the cr

(G&A). Plantand consums from ore rght vehicle ru

the metallar ores.

m the electric

mated at 6%

onal and tec

t vehicles, p

consumable

nd maintaini

142

7. The rushing

t costs mables, reclaim unning

urgical

al load

of the

chnical

rocess

es and

ing the

PERevDat

21


Tabl

Table

Proc

Proc

Pow

Rea

Main

Tota

1.6 Gen

The

1

Operation excluding

Power sulubricants

Operation

Labor and

e 21.11 is a

e 21.11 – Proce

C

cess Operati

cess Labor

wer for Process

agents & Cons

ntenance Mate

al Process Co

eral and Ad

overall proje

of the TSFconstruction

pplied to thand mainten

of raw water

operational

summary of

ess Operating C

Category of C

ng Cost

s

sumables

erials and Sup

ost

ministrative

ect G&A cost

, including t and on-goin

e process pnance supplie

r supply facil

costs for the

process ope

Cost Estimate

Cost

pply

e (G&A) Cos

ts are summa

tailings dischng dam raise

plant from thes;

lity from the

e metallurgica

erating cost p

(Based on 3,50

st

arized in Tab

harge and mes;

he power fa

raw water da

al and assay

per tonne of

06 t/d ore mille

Unit

$/t ore mi

$/t ore mi

$/t ore mi

$/t ore mi

$/t ore mi

ble 21.12.

management

acility, inclus

am and wells

y laboratories

ore treated.

ed)

lled

lled

lled

lled

lled

and return

sive of labor

s; and

s.

Value

1.77

4.15

17.8

1.41

25.1

143

water,

r, fuel,

PERevDat


Table

G&A

G&A

Perm

Tota

Belothe e

The camthe c

All o

1

e 21.12 - G&A C

C

A

A Labor

manent Camp

l G&A

ow is a summestimate:

$1.49 M/y plants ope

$0.17 M/ybenchmar

$0.79 M/y advised by

$1.00 M/y

$0.23 M/yquality samflow meas

$2.24 M/y G&A vehicconsumpti

$0.46 M/yplants; and

$0.50 M/y

camp unit cp lodging ancamp.

ther G&A co

Cost Estimate (

Category of C

mary of the m

for G&A laberating in the

y for commuking similar p

for insurancy Suyamarca

for commun

y for environmpling and murement – as

for G&A vehcle list and eion;

y for G&A pod

for small eq

cost was basd catering pe

osts were est

(based on 3,50

ost

main cost item

bor – manninregion;

nications incplants operat

ces to covera;

nity project an

nmental licemonitoring, as advised by

hicles includiestimated ru

ower costs a

uipment hire

sed on similaersonnel cos

timated base

06 t/d ore milled

ms included

ng schedule

cluding sateting in the re

r general liab

nd relations –

nses and mnalysis of su

y Suyamarca

ng fuel, consn time hours

associated w

e costs.

ar operationssts. Labor ros

ed on benchm

d)

Unit

$/t ore mill

$/t ore mill

$/t ore mill

$/t ore mil

in the G&A o

and rates b

llite phone cegion;

bility, risk, an

– advised by

monitoring inurface and gra;

sumables ans, hourly ma

with the cam

s in the registers were u

marking simil

led

led

led

led

operating co

based on ben

communicati

nd vehicle in

y Suyamarca

cluding costround water,

nd maintenanintenance co

p, offices an

on. These csed to deter

lar plants.

Value

5.46

1.16

2.08

8.70

ost and the b

nchmarking

ons and inte

nsurance pol

a;

ts associate as well as s

nce – based ost and hour

nd water trea

camp costs imine occupa

144

asis of

similar

ernet -

icies –

ed with surface

on the rly fuel

atment

nclude ancy at

PERevDat

22

22

22


2 Eco

Two econanalyHoch

2.1 Ove

Inforby Scalcupotedepe

The inforRepocorre

2.1.1 Assu

1

onomic An

economic anomic analysysis” providehschild terms

rall Project

rmation and Suyamarca aulated in thential taxationendent upon

following armation provorting Standect.

umptions

The gold completingwere $1,10

99.85% patreatment doré trans

Financial pcalculate t(IEM);

Royalties apercentage

For tax depreciatestraight-lin

8% profit s

30% corpo

There are

Value addthen recovduring the

Analysis bincluding t

5% discou

The cash for costs w

nalysis

analysis cassis” shows tes the econos of agreeme

Economic A

calculation mand are beliee FS cash fn. The actuafactors that

assumptions vided by Suydards (IFRS)

and silver g the overal00 and $18 p

ayable gold charge, $0.7portation and

profit and losthe net ope

and IEM aree of pre-tax o

purposes, ted in the sane depreciatio

sharing tax a

orate income

no applicabl

ed tax (or IGvered when tlife of mine

begins in yethe feasibility

unt rate for ne

flow analysiswas applied. T

ses have bethe parameteomic parameent as outline

Analysis

methods regeved by Auseflow are simal tax that mare beyond t

were usedyamarca con). Ausenco h

prices usel project basper troy ounc

and 99.75%75 per payabd insurance

ss (P&L) derating incom

e calculated aoperating pro

total mine ame year of on rate;

applied to the

e tax applied

le exportatio

GV) is excludthe doré is eis not expect

ear 2012 (lay study are a

et present va

s uses “constThis is consis

en provideders of the o

eters of the ped in Section

garding taxatenco to be c

mplified and might be paid

the scope of

in this ecnforming to has not aud

ed for devese case ecoce for gold an

% payable sible gold ounccost;

preciation (bme and the

as per the leofit;

developmenf expenditure

e net profit pr

to the final n

n taxes to be

ed from the xported. Theted to have a

abeled as Yssumed to b

alue calculati

tant US dollastent with mi

d in this repooverall projecproject specin 4.2.

tion and duticorrect at theintended to

d by Suyamaf this report.

conomic anaPeruvian Laited this info

loping the onomic analynd silver resp

ilver. $0.17 ce refinery co

based on theapplicable r

egislative pro

nt, closure e. Other cap

rior to income

net profit;

e applied;

cashflow anae calculation a significant

Year -2), thebe sunk costs

ion as per m

ars”, which mneral industr

ort. Firstly tct. Secondlyific to IMZ ba

ies participate time of this

provide onlarca is a co

alysis and aaw and Inteormation, bu

ore reserveysis as outlipectively;

per total meost, and $13

e unit of prodroyalty and s

ogressive sca

and rehabipital expend

e taxes;

alysis. This tof the IGV pimpact on th

erefore all cs;

ineral indust

means that nory practice;

he “overall y the “IMZ sased on the

tion were prs report. Thely an indicamplex subje

are based ornational Fin

ut believes it

e estimationned in Tabl

etal ounce re.31 per kilog

duction methspecial mini

ales, based

litation costditures use a

tax will be papaid and recoe overall cas

costs prior t

try practice

o inflation of

145

project specific

IMZ –

ovided e taxes tion of

ect and

on the nancial t to be

ns and e 22.2

efinery gram of

hod) to ng tax

on the

ts are a 15%

aid and overed shflow;

to and

f prices

PERevDat

22


The $1,1

2.1.2 Meth

Opesumanaly

1

The analys

The analyconsidered

cash flow an00/oz gold a

hodology

rating and maries for iysis calculat

sis has a bas

ysis was perd.

nalyses all uand $18/oz si

capital costnput into theion is depicte

se date of Q4

rformed base

used the samilver reserves

ts were come economic ed in Table 2

4 2011; and

ed on 100%

me LOM prods.

mpiled by eanalysis sp

22.1.

% equity fina

duction sche

each responpreadsheet.

ancing. No d

edule that we

nsible QP aThe flow ch

debt financin

ere compiled

and submitthart for the

146

ng was

d using

ted as overall

PERevDat


Table

*Exclu

The

Ton

S

S

1

e 22.1 - Econom

uded in Pre-tax

economic an

nnes and grade

P

Recov

Perce

Off-site costs

Operating co

Sub-total

Financial P

Sub-total P&L oro

Financial P

Sub-total opera

Tax accoun

Peruv

N

Co

Tax accoun

Net opera

C

Ne

mic Analysis C

calculation

nalysis is sho

Calculation

e delivered to th

x

Process recov

=

vered gold/silve

x

entage smelter

x

Gold/Silver pri

-

s (refining, tran

=

Revenue

-

osts (mine, pro

=

l pre-tax opera

-

P&L depreciatio

=

operating incomoyalties and du

-

Royalties*

-

IEM mining tax

+

P&L depreciatio

=

ting income fo

-

nting depreciati

-

vian profit shar

=

Net taxable inco

-

orporate income

+

nting depreciati

=

ating cashflow

-

Capital expendit

=

et annual cash

alculation

own in Table

s

he processing

very

er ounces

payables

ice

nsportation, etc

ocessing, G&A

ating income

on allow ance*

me for calculauties

x*

on allow ance*

r calculating ta

ion allow ance*

ring tax*

ome

e tax*

ion allow ance*

after taxes

tures

flow

e 22.2.

facility

c.)

)

ting

axes

*

*

147

PEMN000Rev: 0 Date: 11 J

012-RPT-0001

January 2012

Table 22.2

Productio

Revenue

Operating

Operating

Duty and R

Ope

Depreciati

Taxes

Operating

2 - Overall Proj

on

g Cost

g Revenue (Pre

Royalties

erating Income P

ion and Amort

g Revenue (Afte

ect Economic

-Royalties and

Fi

Percentage to c

Pre-ta

Pr

ization

er Tax)

Analysis (Base

S

Go

Silve

Gross

Gross S

Gross M

Less realiz

Net M

d IEM)

Operating

nancial Deprec

Operating Inc

calculate IEM an

IEM

ax Operating inc

re-tax Operating

Financial D

Tax D

Tax loss C

Taxa

e Case)

Ore mined

Gold grade

Silver grade

old recovery

er Recovery

Gold Value G

Silver Value S

Metal Value

zation costs

R

R

D

Metal Value

Mining

G&A

Plant

g Cash Flow

iation (P&L)

come (P&L)

nd Royalties

Royalty

Mining Tax

come (P&L) P

g Cash Flow P

Depreciation

Depreciation

Carryforward

able Income

P

P

Gold Payable

ilver Payable

Refinery Treatme

Refining Cost

Dore Transportat

re-tax (after dut

re-tax (after dut

eruvian Profit S

eruvian Income

ent Cost

tion and Insuran

ties and royaltie

ties and royaltie

Sharing tax

e Tax

nce

es)

es)

99.85%

99.75%

8.0%

30.0%

Unit

Mt/a

g/t

g/t

%

%

% $

% $

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

% $

% $

Total

7.8

3.37

120.2

95.6

90.6

860,148,765

475,587,222

4,636,046

586,465

11,290,267

1,319,223,209

304,795,043

77,901,582

197,376,139

13,357,360

8,772,147

301,152,031

717,020,939

35.6%

6.8%

42.4%

-415,868,908

-114,716,878

24,092,162

83,117,960

2012

8

7

2

6

6

5

2

6

5

7

9

3

2

9

0

7

9

%

%

%

8 -22,500,000

8 -22,500,000

2

0

2013

0 -77,389,75

-22,500,00

0 -99,889,75

2014

0.6

3

9

9

90

77,050,4

30,693,8

107,744,2

302,5

52,5

736,7

106,652,4

30,514,4

11,128,7

16,594,1

48,414,9

-61,850,2

-13,435,2

1,077,4

-14,512,7

47,337,5

61,850,2

56 -58,739,7

00 -99,889,7

56 -111,291,9

2015

617 1

3.81

98.0 1

95.6

0.60 9

404 140,586

850 77,395

254 217,982

539 754

534 95

779 1,837

402 215,294

480 47,368

797 11,128

137 31,604

988 125,193

251 -56,347

264 68,845

443 2,179

0 1,881

706 64,783

545 121,131

251 56,347

717 -54,698

756 -111,291

928 -44,858

0

0

5 201

1.260

3.41

121.0

95.6

90.60

6,283 124,39

5,810 94,18

2,092 218,57

4,552 91

5,854 8

7,577 2,21

4,109 215,35

8,115 47,37

8,797 11,12

4,000 31,61

3,196 125,23

7,594 -57,18

5,601 68,05

9,821 2,18

1,896 1,84

3,885 64,01

1,479 121,20

7,594 57,18

8,512 -49,80

1,928 -44,85

8,961 26,53

0 2,12

0 7,32

16 20

1.261

3.01

147.2

95.6

90.60

90,440 109,1

80,482 83,5

70,922 192,7

10,964 8

84,812

18,492 1,9

56,654 189,8

78,334 47,3

28,797 11,1

13,102 31,5

36,421 99,8

83,667 -58,2

52,754 41,6

85,709 1,9

47,826 9

19,219 38,7

02,885 96,9

83,667 58,2

09,095 -53,4

58,961

34,830 43,4

22,786 3,4

23,613 12,0

017 20

1.258

2.65

130.9

95.6

90.60

179,935 124,

569,901 69,

749,836 194,

808,148

74,441

968,101 1,

899,146 192,

315,624 47,

128,797 11,

557,251 31,

897,473 102,

247,562 -60,3

649,911 41,

927,498 1,

985,847

736,565 39,

984,128 99,4

247,562 60,

495,895 -44,2

0

488,232 55,

479,059 4,4

002,752 15,2

018 2

1.258

3.03

109.4

95.6

90.60

934,017 149

835,453 61

769,470 211

680,547

85,182

657,351 1

346,389 208

303,526 47

128,797 11

546,477 31

367,589 119

395,914 -63

971,675 55

947,695 2

992,509 1

031,472 51

427,386 115

395,914 63

256,637 -27

0

170,749 88

413,660 7

227,127 24

2019 2

1.255

3.64

96.8

95.6

90.60

,567,667 134

,594,521 58

,162,188 192

606,334

101,978

,476,618 1

,977,258 190

,213,462 37

,128,797 11

,466,266 22

,168,733 118

,788,024 -58

,380,709 60

,111,622 1

,402,451 1

,866,635 57

,654,659 115

,788,024 58

,050,452 -27

0

,604,207 87

,088,337 6

,454,761 24

148

2020

0.892

4.60

128.9

95.6

90.60

4,440,019

8,317,205

2,757,225

572,962

91,664

1,395,348

0,697,251

7,701,502

1,128,797

2,994,905

8,872,046

8,055,895

0,816,151

1,927,572

1,661,617

7,226,961

5,282,857

8,055,895

7,928,845

0

7,354,012

6,988,321

4,109,707

PEMN000Rev: 0 Date: 11 J

012-RPT-0001

January 2012

Capital Co

Pre-Tax C

Post-Tax C

ost

ashflow Analy

Cumulative

NPV -

Cashflow Anal

P

Cumulative P

NPV - A

ysis

Project Cash F

e Project Cash F

- Pretax, 100%

ysis

Project Cash Flo

Project Cash Flo

After tax, 100%

Operating

Total C

Flow - Pretax, 1

Flow - Pretax, 1

Equity @ 5% d

ow - After tax, 1

ow - After tax, 1

Equity @ 5% d

g Cash Flow A

Capital Cost

00% Equity

00% Equity

iscount rate

00% Equity

00% Equity

iscount rate

After-tax

Unit

$

$

$

$

$

$

$

$

Total

609,810,816

2012

6

82,000,000

-82,000,000

-82,000,000

-78,095,238

-82,000,000

-82,000,000

-78,095,238

2013

0 233,358,05

0 -233,358,05

0 -315,358,05

8 -289,757,87

0 -233,358,05

0 -315,358,05

8 -289,757,87

2014

47,337,5

52 19,253,2

52 29,161,7

52 -286,196,3

70 -264,566,8

52 28,084,2

52 -287,273,7

70 -265,497,6

2015

545 121,131

283 16,495

705 108,697

347 -177,498

893 -175,141

262 104,636

789 -182,637

628 -179,413

5 201

1,479 111,75

5,468 17,06

7,727 108,16

8,619 -69,33

1,004 -90,38

6,011 94,68

7,779 -87,95

3,323 -105,22

16 20

56,486 81,5

69,367 13,9

67,054 85,9

31,566 16,6

89,287 -26,2

87,119 67,5

50,660 -20,3

23,488 -54,8

017 20

502,317 79,

932,864 15,

964,610 86,

633,044 103,4

241,171 35,4

569,453 64,

381,207 43,

802,122 -9,

018 2

786,599 84

592,101 5

775,489 113

408,533 216

428,548 112

194,499 78

813,292 122

180,290 43

2019 2

,111,562 84

,710,823 12

,457,910 106

,866,442 323

,221,328 180

,400,739 71

,214,031 193

,884,416 90

149

2020

4,184,829

2,456,952

6,415,095

3,281,537

0,817,447

1,727,877

3,941,908

0,120,845

PERevDat

22


2.1.3 Sens

Sensoperthe panalydecr$82MNPVanaly

Operedu$43M

The in anshow

Table

Casecase

1

sitivity Anal

sitivity analyrating cost, mpre-tax net pyses show t

rease in goldM. The reverV5% increaseyses.

rating costs ces the pre-

M. A 10% ch

project econn approximawn in Table 2

e 22.3 - Overall

Case

e 1 (base )

lysis

yses were dometal price apresent valuethat the pro price or merse occurs if

es from $18

are the nextax NPV5% bange in oper

nomics are aately 20% ch22.3.

Project Econo

Varia

Capital Co

Operating

Metal PriceGrade

one on the and mill feede using a 5%

oject is mosttal grade leaf the metal p

81M to $280

xt most senby $44M and rating costs r

also sensitivehange in pre

omic Sensitivity

able

ost

Cost

e or

base case grade up a% discount rt sensitive toads to a 55%price or mill 0M. Table 2

nsitive parama 10% decr

results in a 2

e to capital ce-tax NPV5%

y Summary

-10%

Variance

217

224

82

by individuand down by rate (NPV5%)o gold price

% decrease infeed grade

22.3 shows

meter. A 10%rease in oper24% change

cost. A 10% . A summar

Pre-tax

Va

ally modifying10% to show

). The resulte and mill fen pre-tax NPVincreases bythe results

% increase rating cost inin pre-tax NP

change in cary of the sen

NPV5% (M$)

0%

ariance

181

181

181

g the capitaw the sensitts of the seneed grade. AV5% from $18y 10%, the p

of the sen

in operatingncreases NPVPV5%.

apital costs nsitivity anal

+10%

Varian

144

137

280

150

al cost, tivity of nsitivity A 10% 81M to pre-tax nsitivity

g costs V5% by

results ysis is

%

ce

PERevDat

22

22

22

22


Figur

2.1.4 Payb

The 18%estimdirec

2.1.5 Mine

The prod

2.2 IMZ

This IMZ

2.2.1 Assu

Pre

tax

NP

V(M

$)

1

re 22.1 - Overal

back

overall proje. The overal

mates do noctly linked wit

e Life

life of mineuction years

Specific Ec

case outline– Hochschild

umptions

As per the

The princsupplied b

0

50

100

150

200

250

300

Pre

-tax

NP

V5%

(M$)

Me

ll Project Sens

ect pre-tax pl project pos

ot include suth the Feasib

e plan encoms (2012 to 20

onomic Ana

es the projecd terms of ag

e assumption

cipal terms by IMZ and o

-10%

etal Price

itivity Analysis

payback perist-tax paybacunk costs spbility Study.

mpasses ap13 inclusive)

alysis

ct economicgreement for

ns outlined in

of the framutlined in Se

Percent

Sensitivit(

Capital Cost

s – Base Case

od is 4.3 yeck period is 5pent prior to

pproximately ) and seven

parametersr the joint ven

Section 22.

mework agreection 4.2 are

0%t Change fro

ty of Base E(Pre-tax NPV

O

ears with an 5.1 years wito 2012 or o

nine years years of com

s that are attnture as outli

1.1;

ement betwe accurate; a

m Base Case

Economics V)

Operating Cost

internal rateh an IRR of

on-going exp

and is madmmercial prod

tributable to ined in Secti

ween IMZ aand

10%e

Grade

e of return (I12%. The paploration cos

de up of twduction.

IMZ based on 4.2.

nd Hochsch

151

RR) of ayback sts not

wo pre-

on the

hild as

PERevDat

22

22


2.2.2 Resu

Tablbase

Table

Avera

Avera

Avera

Life-o

Life-o

Life-o

Initia

Direc

Direc

Total

IRR P

Pre-t

Pre-t

Pre-t 1) Dire

cosprof

2) Golpric

3) By-per

4) For $56

2.2.3 Sens

Senspara

1

IMZ adviseFeasibility expended capital req

ults

e 22.4 belowed on the term

e 22.4 - IMZ’s A

age annual go

age annual sil

age annual go

of-mine gold p

of-mine silver

of-mine gold e

l capital

ct site costs1

ct site costs1,3

cash operatin

Pre-tax/post-ta

ax /post-tax c

ax/post-tax NP

ax/post-tax NP

ect site costs ints plus estimatefit sharing whichd equivalents a

ces. product accounounce of gold. comparative p

60/oz of gold and

sitivity Anal

sitivities to gameters are s

ed AusencoStudy and pby Hochsch

quired for the

w shows IMZms of the join

Attributable Pro

Item

old production

lver production

old equiv. prod

production

production

equiv. producti

ng costs1,3,4

ax

ash flow (non-

PV, 5% discou

PV, 8% discou

nclude mining, es of the manah is 8% of net in

are estimated us

nting subtracts t urposes, if IMZd $9.15/oz of si

lysis

gold and silvshown in Tab

that to dateproject develhild before IMe construction

Z’s attributablnt venture ag

oduction and E

n

duction2

ion2

-discounted)

unt rate

unt rate

processing andagement fee, rencome). sing a silver-to-g

the revenue gen

Z had selected lver.

ver prices bble 22.5 belo

e Hochschildlopment cost

MZ is requiren of Inmacula

le productiongreement.

Economic Para

$

$ per oun

$ per oun

d mine administefining charges

gold ratio of 60:

nerated by silve

co-product acc

based on IMow.

has spent ats. This leav

ed to start coada project.

n and econom

meters

Units

oun

oun

oun

$

$ per tonne pr

nce Au (with A

nce Au (with A

$

$

$

tration. Total caand governme

1 calculated by

er from the total

ounting, the res

MZ’s attributa

approximatees a further

ontributing its

mic paramet

nces/year

nces/year

nces/year

ounces

ounces

ounces

$ millions

rocessed

Ag credit)

Ag credit)

%

$ millions

$ millions

$ millions

ash operating cnt royalty (but

y using the ratio

l operating cost

sulting cash op

able product

ly $11.5 mill$88.5 million

s 40% share

ers for Inma

49,600

1,682,000

78,000

313,000

10,600,000

488,000

91

74

133

262

26 / 21

136 / 95

85 / 57

63 / 40

costs include dido not include

of the base cas

ts to determine

perating costs w

tion and eco

152

lion on n to be of the

culada

0

0

0

0

0

0

4

3

2

5

7

0

rect site workers

se metal

the cost

would be

onomic

PERevDat


Table

Cate

IRR

Cash($ m

NPV ($ m

NPV ($ m

1

e 22.5 - Pre-tax

egory $

h Flow illions)

5% illions)

8% illions)

Sensitivity An

$900/ $15.00

$$

10%

$46

$17

$6

nalyses Attribu

Gold

1,100/ $18.00

$$

26%

$140

$87

$65

table to IMZ (b

Price/Silver

$1,300/ $21.00

$$

41%

$234

$158

$124

base case in bo

r Price ($/oz

$1,500/ $25.00

$$

55%

$339

$236

$190

old)

z)

$1,700/ $28.00

67%

$433

$306

$249

$1,900/ $31.00

79%

$528

$376

$309

153

PERevDat

23


3 Adj

The undePallaouncSuya

1

acent Pro

Inmaculadaerground miancata mine ces of silver amarca.

operties

a project isne, also owis a silver/g

r and 33,881

s located awned by IMZgold mine op1 ounces of

pproximatelyZ (40%) anperating at 3

gold and is

y 40 km sd Hochschi

3,000 t/d ands owned by

outh east old (60% andd in 2011 prthe same P

of the Pallad operator).

roduced 8.8 Peruvian com

154

ancata The million

mpany,

PERevDat

24

24


4 Oth

4.1 Mine

Recogeomas pdrillinpurp

The

Table

D

AU

AU

AU

AU

AU

AU

The

The detetime

1

her Releva

e Geomecha

ommendatiomechanical epart of the Fng, geologic

poses.

field activitie

Geomechaand zones

Surface m

Permeabil

Drilling and

e 24.1 - Geomec

Drillhole

S_INM-01 8

S_INM-02 8

S_INM-03 8

S_INM-04 8

S_INM-05 8

S_INM-06 8

testwork and

Measurem

Laboratorypropertiestraction teholes;

Geomecharating (RM

Stereograpand

Finite-elemand field lo

evaluation orministic mebased on th

ant Data an

anical Overv

ns for desievaluation ofS. The eval

cal mapping

es included:

anical re-logs adjacent to

mapping using

ity measurem

d logging 6 o

chanical Core

Coordinat

North

347 275,4

347 148,9

346 744,0

346 781,6

346 486,7

346 299,2

d analysis ap

ment of intact

y tests, whic, elastic prop

est. These w

anical evaluaMR) along the

phic analysis

ment stress-sogging inform

of the stabilethodologies he RMR of th

nd Informa

view

ign and suf the mineraluation includ, and orient

ging for 185the vein in t

g cell and de

ments and pi

orientated co

Holes

tes (m)

East

690 035,4

689 600,0

689 414,0

689 138,6

688 954,0

688 651,6

pplied to the

t rock hardne

ch included:perties, triaxi

were applied

ation includie Angela Vei

s, based on

strain analysmation.

lity for the rincluding; m

he HW and F

ation

pport of unized zone anded a reviewtated drill co

5 selected cohe HW and F

etail lines in 5

iezometer in

ore holes.

Elevation(m)

4 692,1

4 694,7

4 657,0

4 688,2

4 658,3

4 583,9

samples and

ess through S

point loadial compressover repres

ng the deven, based on

n the structu

sis of propos

rock excavamaximum diFW and the v

nderground nd the hangiw of informaore drilled s

ore drill holeFW;

51 stations;

stallation; an

Azimuth(°)

311,1

140,0

304,4

124,2

308,5

139,1

d information

Schmidt ham

index, uncosion, direct ssentative sam

elopment of exploration a

ral informati

sed excavatio

tions was dmension forvein; the stab

excavationsngwall (HW)

ation from prspecifically f

es. These fo

nd

Inclination (°)

-68,0

-80,1

-68,9

-75,8

-68,0

-79,6

n collected in

mmer testing;

onfined comhear on fractmples from

a 3D modeland orientate

on from orie

ons, based o

eveloped usr excavationsbility graph m

s were bas) and footwarevious explofor geomech

ocused on th

Depth(m)

395,0

540,8

375,0

390,1

280,0

220,0

n the field inc

mpression, phtures and Brthe orientate

of the rocked core holes

entated drill

on laboratory

sing empirics and self-s

method to sta

155

ed on ll (FW) oration hanical

he vein

cluded:

hysical razilian ed drill

k mass s;

holes;

y tests

al and support ate the

PERevDat

24


hydr2 sof

Accomaxthe eimme

The showis 33and impr

The pillardetaanalymeth

It wa(whenorth

4.2 Proj

Projeand

The subjecondcomplantitems

Com

Com

Com

Com

Com

Com

Prod

Procsche

1

raulic ratio; aftware.

ording to theimum unsupexpectation ediate suppo

basic RMR wing an aver3. The mode40) to Fair

roved rock qu

finite-elemer between siled analysisysis shows hods utilizing

as recommeere the vein h and south p

ect Impleme

ect constructice) and the

following crect to receipditions. Delapletion. It sht was essens.

mmence place

mmencement

mplete detaile

mmence mec

mplete civil wo

mmence com

duction………

curement of edule, either

Paste bac

Merrill Cro

and the 2D fi

e mean RMRpported exca

is 2.7 m of ort in the vein

(without corage value of

el indicates t(IIIB - RMR

uality in the c

ent stress-strsub-levels cos to 7 m, assthat there a

g an stope he

ended that sis wider) witparts of the v

entation Sch

tion is expecreduced pro

itical key dapt of environmays in meetihould be notentially compl

ement of ord

civil works…

ed engineerin

hanical insta

orks…………

missioning…

………………

the followindue to long l

kfill plant and

owe equipme

nite element

R obtained froavation is 4 m

unsupportedn after blastin

rrection for of 42 in the HWthat the pred

R between 4central zone.

rain analysisould be 4 -suming an avare no expeceight of 5 m.

ub level stoth a stope hvein with cut

hedule

cted to takeoductivity at 4

ates and milemental approing these taed that at theted, with r

ders for long

….……………

ng……………

allation..……

………………

………………

………………

ng items halead or the re

d filters – lon

ent and filters

t stress-strain

om the geomm with a selfd excavationng activities.

oriented strucW and 43 in dominant roc1 and 60). T.

s for the tran5 m high; hverage vein cted problem

ping mining height of 5 m

heights of 5

15 months4,800 masl.

estones haveovals, financarget dates he time of threcommenda

lead items…

………………

………………

………………

………………

………………

………………

as been ideequirement f

ng lead and v

s - long lead

n analysis fo

mechanical mf-support timn for 7.2 ho

ctures) was the FW, whi

ck quality isThe model a

nsversal subhowever it cwidth of 6.5

ms with stab

be applied m, and cut an

m.

due to clima

e been idening, award owould likely

is report basations made

…………………

………………

………………

………………

………………

………………

………………

entified as cfor vendor da

vendor data;

and vendor

or the excava

model for theme of 2 days,ours. These

modeled in le in the veinPoor (IVA -

also indicate

b level stopicould be optm. Finite ele

bility for the

in the centrnd fill mining

atic condition

tified for theof contracts ay result in asic engineeri

for purchas

………………

………………

………………

…………………

………………

…………………

………………

critical to mata:

data;

ations using

e HW and FW, while for thconditions r

3D along thn zone the av

RMR betwees a trend to

ing showedtimized withement stresscut and fill

ral part of thg be applied

ns (seasona

e project. Thand meteoroa delay in ping on the pse of all lon

…...February

………….May

…..December

……...March

……..…May

…November

…December

meet the pro

156

Phase

W, the he vein require

he vein verage een 31 owards

that a h more s-strain mining

he vein in the

l snow

ey are ological project rocess g lead

2012

y 2012

r 2012

2013

2013

r 2013

2013

oposed

PERevDat


1

SAG and b

Thickeners

Crushing e

Leach tank

Mill liner h

Cyclone cl

Samplers;

Oxygen pl

ball mills – lo

s and clarifie

equipment - v

k agitators -

andler - vend

luster;

and

ant.

ong lead and

er – long lead

vendor data;

vendor data

dor data;

vendor data

d and vendor

;

;

a;

r data;

157

PERevDat

25

25

25

25


5 Inte

The studydefinkey i

5.1 Geo

The robuhas cons

Oppo

Risk

5.2 Geo

The resusize vein north

The possthe Acond

5.3 Mini

Minedilutirese

The standmap

Oppo

1

erpretation

Inmaculada y to FS. As

nition to be cinterpretation

logy and Re

Inmaculada st and reliabbeen conse

servative.

ortunities

The locatioAngela Ve

ks

Small scallevel deveextent.

mechanical

geomechanlt a conservaand sequen(larger vein

h and south a

maximum esible to haveAngela Vein dition require

ng

eral reservesion and applrves.

undergroundards. In adping, laborat

ortunities

Improve ththe mine th

Optimize tdesign fee

n and Con

project was a result thecompleted dns, risks and

esources

deposit is exble as evidenervative and

on and definein.

le offsets of telopment an

ical results ative approacing. The suwidth) with

areas of the

xcavation ane unsupporte

the expectaes immediate

s for Inmacying ore loss

d mining mddition to utitory analyses

he ramp-up dhat generally

the mine pled rate of 3,5

nclusions

s a fast trackere are a nuuring subseq opportunitie

xtensively drnced by exam

realistic. Th

nition of add

the veins mad careful m

indicated poach was takeub level stopi

a stope heigvein with cut

nd auto-supped excavationation was 2.7e support in t

culada wereses, and con

methods appilizing good s, and report

during the firy contain hig

an and sch506 t/d;

ked feasibilitumber of arquent phase

es identified d

rilled and wemples of the Qhe dilutant g

itional veins

ay make minmapping and

oor rock conen to the minng mining mght of 5 m. Tt heights of le

port time anans up to 4 m7 m of unsuphe vein zone

estimated nverting mea

lied to the Amining prac

ting will be re

rst year, increher gold and

edule to ma

ty study, proreas identifiees of the Produring the co

ell understooQAQC data. grades appli

for mining i

ning more diffsampling w

ditions in arning method

method was aThe cut and ess than 5 m

alysis of the m with an aupported excaes after blast

according tasured and in

Angela Veinctices, a sysequired to mi

easing the pd silver grade

aximize the

ogressing dired for optimioject. This sourse of the F

d, geologicaThe approa

ied to the m

n both the F

fficult than plwill mitigate

reas of the Aselected, as

applied in thefill method

m.

HW and FWuto-support tiavation for 7ting activities

to industry ndicated reso

n are consisstematic proginimize dilutio

roduction in es;

plant throug

rectly from sization and ection outlinFS.

ally. The datach to interpre

mining reserv

FW and HW

anned. Aggrthis risk, to

Angela Veins well as thee central partwas applied

W showed thime of 2 day

7.2 hours. Ths.

standards, aources into m

stent with ingram of samon and ore lo

the lower zo

ghput at the

158

coping further

nes the

a set is etation ve are

of the

ressive some

. As a e stope t of the in the

hat it is ys. For his last

adding mineral

ndustry mpling, osses.

ones of

e plant

PERevDat

25

25


Risk

5.4 Proc

Outcsucc

The resu

Merc

5.5 Taili

The

1

Evaluate pthe curren

Evaluate timprove th

Complete various raand opera

Investigatethereby re

ks

There is liinterceptedthat lower developme

The vein g50 m. It conditionsvarious zomethods; a

The stereorientationaltered by

cess Plant

comes of thcessfully ach

following oplts, as well a

primary gr

pH 11.0 us

cyanide co

96-hour le

40% w/w s

oxygen sp

cury abateme

ngs Storage

following inte

The propoduring the

Based onsequenced

possibilities tt mine desig

he grade of the grade con

more detailetios of cemeting costs; a

e opportunitieducing the re

mited geomed when deverock quality

ents could be

geomechanicis possible than that inones. Thereand

eographic ann of the vein these struct

he testwork ieved using i

ptimum leachas trade-off e

rind size P80

sing lime

oncentration

ach

solids

parging.

ent by retort

e Facility

erpretations

osed TSF dlife of mine

n the resultd constructio

to increase tn based on f

the HW and ntrol;

ed testwork oent to allow nd

es to place aequirement f

echanical aneloping the mwill be enco

e higher;

cal model wathat zones

nterpreted, ae is flexibility

nalysis showand have a

ures and pro

conclude tindustry stan

h conditions conomic eva

of 50 μm

0.15% (1,50

oven is requ

were made r

esign provid(7.8 Mt);

s of the don of the faci

the stope hefurther geom

FW materia

on the expecoptimization

as much wasfor paste bac

nd hydrogeolmain accessountered tha

as developebetween th

and these coy in the min

wed that thehigh dip an

oduce ground

hat processndard proces

were selectaluations:

00 ppm)

uired when p

regarding the

des sufficien

eposition pllity is possib

eight for the mechanical w

l during oper

cted paste bof the paste

ste rock as pckfill and redu

ogical informs tunnels to n assumed,

ed with drill hhese holes ould alter thne design t

e main jointgle. In somed support pro

sing the Anss techniques

ted for Inma

rocessing or

e tailings sto

nt capacity t

anning andle; and

sub level stwork;

rations using

backfill strenge backfill ce

possible in thucing the op

mation of thethe Angela Vand the sup

holes spacedhave differe

he mining mo switch be

t sets are se zones the oblems.

gela Vein os.

aculada base

res especially

orage facility:

to store the

water bala

toping areas

g short drill h

gth achievedment consum

e mined out erating costs

e zones that Vein. It is po

pport cost for

d at betweenent geomechethod select

etween the

sub-parallel rock mass m

ore types c

ed on the te

y from Zone

tailings pro

ance assess

159

within

oles to

d using mption

areas, s.

will be ossible r these

n 20 to hanical ted for mining

to the may be

can be

stwork

3.

oduced

sment,

PERevDat


1

It is possibbackfill to t

ble to reducethe undergro

e the size of tound mine.

the TSF based on the ammount of tailings used for

160

r paste

PERevDat

26

26

26


6 Rec

The desigkey r

Base

6.1 Geo

To c

The mateVeinwhetused

6.2 Geo

The both geommeth

1

commenda

investigationgn. Risks anrecommenda

ed on the find

The projecand constr

logy and Re

onfirm the po

Level deve

Detailed mmodels be

Closer spaany paralle

only previouerial to have . It is recomther or not thd in the splay

mechanical

geomechanthe HW an

mechanical hod selected

It will be informationgeologicaldevelopme

The enginany furtheanticipate stopes to should takthese open

The magnanalyses recommen

It is recomdata and im

ations

ns and analynd opportunitations covere

dings of the

ct advance toruct.

esources

otential expa

elopment of t

mapping ande undertaken

aced drillingel veins is wa

us study of tha slightly lowmended, the

here is a denys, branches

& Mining

ical drilling rnd FW to jusdrilling cam and the key

important tn becomes mapping shent;

eering geolor major geoltheir potentanticipate a

ke those locanings in relat

nitude and orin stope st

nded;

mmended thamprove the i

yses carried ties associated in this Sec

FS it is recom

o basic engi

ansion of the

the Angela V

d sampling o; and

be carried oarranted.

he density ofwer density. erefore, that nsity-grade re

and minor v

results showstify further apaigns wou

y stope param

to continualavailable f

hould be carr

ogy models sogical structtial intersectany potentiaations into action to these

rientation of ability asses

at additional nput data fo

out are consted with the ction.

mmended th

neering follo

current mine

Vein commen

of level deve

out from a F

f the InmaculFurthermoreadditional d

elationship, aveins.

wed a sufficieand more deld provide f

meters and d

ly update trom the exried out durin

should includures identifietions with thl formation.

ccount and, estructures o

the in-situ sssments. Fu

laboratory ter the geomec

sidered apprproject are o

at:

owed by deta

eral resource

nce;

lopment and

FW position t

lada ore shoe, this study wensity measand to estab

ent level of vetailed drillinfurther infor

dilution estim

he engineerxploration hong constructi

de the expeced (e.g., faulthe ramps, m

As much aeventually, loor improve th

stresses are urther inves

esting be conchanical mod

ropriate to feoutlined in S

ailed enginee

e base it is re

d constructio

to determine

owed a tendewas limited turements belish appropri

variability in ng campaignrmation to e

mates are furt

ring geologyoles. In addon of access

cted occurrents and major

mine developas feasible, tocally changee support sp

not known, tigation of

nducted to odel;

easibility leveection 25, w

ering, procur

ecommended

on of grade c

e if developm

ency for highto the main Ae done to esiate densities

rock conditins. These orensure the ther defined.

y model asdition, engins tunnels and

nce and locar dykes) in opment tunnethe mine plae the orienta

pecifications;

and will affein-situ stres

btain more r

161

el mine with the

rement

d that:

control

ment of

-grade Angela tablish s to be

ions in riented mining

more neering d mine

ation of rder to ls and anning

ation of

ect the ses is

reliable

PERevDat

26

26

26


6.3 Plan

Basethe Frecoprovpararock

6.4 Meta

Due durinoptim

6.5 Infra

Durinsite reco

1

The simplemining seqbehavior anext stageperformed

The desigand local conditions

Further rerequiremegeomecha

Once bacconductedpillars sho

The compinto the ge

An ore stoflexibility to

nt Site Geote

ed on the geFS, a more smmended foide more d

ameters and occurs at th

allurgical an

to the natung the FS, amized. This o

Latest rheo

Latest oxyoxygen req

Latest filtra

Investigate40% solidsclassificatiallow the Crowe circ

Optimize t

astructure

ng the feasibaccess roa

mmended th

e mining seqquence in anaround the he of the min once final s

n stope dimadjustment

observed in

efined numnts for dimen

anical perspe

ckfill propertd to assess tuld be left fo

letion of furteomechanica

ockpile shouo the mine o

echnical

eological recospecific plantor detailed detailed inforgeotechnicae location of

nd Processin

re of a fast-nd as such A

optimization i

ology testwo

ygen uptake quirements;

ation testwor

e options to s to 50% solion circuit to leach tank s

cuit due to th

the layout of

bility study a ad. This idehat this be fu

quence usedny detail. It iangingwall dne planning.tope dimens

mensions shots to the d

n the stope;

erical modensions of sill ective to mini

ties are knohe support e

or overall min

ther and moral modeling to

uld be createperations.

onnaissancet site investigdesign of thermation regaal quality; andf the heavy e

ng

-tracked studAusenco recincludes con

ork – to confi

testwork –

rk – to confirm

use a pre-lelids. This wilensure the

sizes to be he decreased

the plant to

logistics stuentified seveurther define

d in 3D stress considered

development Further co

sions and min

ould be regaesign shoul

eling of th(or rib) pillar

imize induce

own, numereffectivenessne stability;

re detailed ho refine the w

ed to assist

and the resgation prograe structures arding the dd specifically

equipment fo

dy, certain mcommends thnsideration of

rm thickener

to confirm th

m the paste

each thickenl provide mocorrect feedreduced. Th

d barren was

reduce the o

udy was comeral areas d through ge

ss modeling d adequate ft and ramps,nfirmatory 3ning sequenc

arded as a fild be expec

e stope sers, as well as

ed stresses;

rical geomecs of the fill, a

hydrogeologywater draina

with mine ra

sults of the inam and in-sitfoundations.

different rocy to determinundations.

metallurgical hat the procef:

r, agitator an

he pressure

backfill filter

er to increasore operating size to leac

his will also sh solution vo

overall civil w

mpleted that iwhere the eotechnical i

does not simfor investigat but should

3D stress mces are defin

rst step in tcted, depen

equence cas optimize th

chanical moas well as to

y modeling isge and hand

amp-up and

nvestigationstu/laboratory . This wouldk lithologiesne if highly w

information ess plant de

d pumping re

swing adso

sizing;

se the leachg flexibility inching is achie

reduce the olumes requi

works require

ncluded evaroad needs

investigation

mulate the plting the rockbe reviewedodeling sho

ned;

he design pnding upon

an determine extraction

odeling shouassess if sil

s required fodling systems

provide add

s carried out testing prog

d include drils, rock mecweathered or

was not avesign for the

equirements

orption (PSA

h feed densit the hydro-ceved, and wsize of the

ired; and

d for constru

luation of thes upgradings (test pits).

162

lanned k mass d in the uld be

rocess actual

ne the from a

uld be l or rib

or input s; and

ditional

during gram is lling to

chanics r weak

vailable FS be

;

A) plant

ty from cyclone will also

Merrill

uction.

e main . It is There

PERevDat

26


werestruc

The inflowto subetterequenvirtreat

6.6 Envi

Ausework

1

e also three ctures require

hydrogeologws of groundustain the per determineirements. It ronment. Futment that ma

ironmental a

enco recommk programs.

Even thourecommen

A water depropose aaquifers or

The enviroaquatic bio

Control pochemical,

The biolog

The re-vegwhich is no

To reduceactivities sprepare arimplementand/or end

Re-vegetaafter they organic so

Threatenerescued to

Mine empflora speci

Provisionato maintain

The develshould incstakeholde(attendancfeed the so

Social actoAll interact

drainage croed and their

gical investigd water into tlant raw wa

ed through fis also likely

urther investay be require

and Social

mends the fo

ugh it is connded in order

epth study sa specific mar if they are i

onmental moota, using be

oints shouldand biologic

gical monitori

getation planot detailed in

e the amountshould be preas where cted, to the gdemic flora s

ation is recomgo through

oils;

ed and/or eno the greates

loyees shouies;

al bridges shon their water

lopment of tcorporate acers. This pce, number oocial monitor

or mapping tions should

ossings idenassociated c

gations compthe mine durter make-upfurther modey that excesigations intoed prior to di

ollowing env

sidered thatr to show the

hould be maanagement pnfluenced by

onitoring plaenthos organ

be includeal componen

ing plan shou

n methodologn the current

t of flora damplanned to components greatest extepecies;

mmended onphysical and

ndemic faunst extent poss

ld be prohib

ould be instasupply and

the communctive participparticipation of trained pering system o

should be ube recorded

tified. Detailcosts.

pleted near thring both the p requiremeneling to dete

ss mine inflowo this waterscharge.

ironmental a

t the impact e dispersion o

ade on the wplan. It shouy surface or s

n should incisms as key

d in the ennts;

uld include a

gy should incplan;

maged from sminimize thwill be locat

ent possible

n areas affecd chemical s

na species wsible;

bited from hu

alled on acceminimize imp

nity relations pation of loc

should be eople, numbeof the projec

tilized to mad as activities

ed engineer

he end of theinitial develo

nts. The quaermine the w water will quality are

and social ite

on air qualiof particulate

wetlands thatld be determseepage wat

clude the usgroups;

nvironmental

an assessme

clude a succ

stripping ande areas subted. In additi

and as nec

cted by the lstabilization

within the co

unting, captu

ess roads thapacts to the

plan must cal authoritie

recorded er of workshot;

anage the ens within the c

ring is requir

e FS indicatopment and ality of this wsuitability foneed to be required to

ems be addr

ity will be loe matter in th

t will be impamined whethters;

e of biologic

monitoring

ent of flying m

cess indicato

d soil removabjected to eon, rescue acessary, to

location of p(if necessar

omponent fo

uring, and ex

at inevitably caquatic biota

continue; thes and com

using quanops perform

ngagement ocommunicatio

ed to better

ed sufficientproduction pwater needsor plant raw

discharged define any

ressed in fol

ow, air modehe project are

acted to be aer they are

c indicators f

plan for ph

mammals (ba

or for re-vege

al, the constearthworks aactivities shoprotect threa

project compory) and dispo

ootprint sho

xtracting faun

cross body wa;

e social promunity leadentifiable inded, etc.) whi

of all stakehoon plan;

163

define

ly high phases s to be

water to the water

low-up

eling is ea;

able to fed by

for the

hysical,

ats);

etation,

ruction and to ould be atened

onents osal of

uld be

na and

waters,

ograms ers as icators ich will

olders.

PERevDat

26

26


6.7 Risk

It is asse

6.8 Bud

The proje

1

The commbe prepare

An archaestage. Thiarchaeolog

k Assessme

recommenessment shou

Commodit

Timing of c

Mining me

Exchange

Taxation;

Logistics;

Manpower

Sociopoliti

Geotechni

Environme

get

budget for tect through to

Basic andapproxima

Owners co

Project co

munication pled and disse

eological monis is critical gical heritage

nt

ded that a uld include, b

ty prices;

construction

ethods select

rates;

r;

ical consider

ical/geomech

ental conside

he next two o operations

d detailed eately $29 M;

osts of appro

nstruction ap

lan should ineminated amo

nitoring plan to avoid an

e.

risk assessbut not be lim

permits bein

ted and prod

rations;

hanical cons

erations.

years (subje and product

ngineering,

oximately $13

pproximately

nclude a claiongst the po

must be devny damages

sment be cmited to, the

ng available;

uctivities;

iderations; a

ect to succestion is shown

procuremen

3 M; and

y $273 M.

im and compopulation in a

veloped prior to the proj

carried out following item

and

ssful and timn below:

nt and const

plaint proceda didactic ma

r to the start ect site’s pr

during the ms and issue

mely permittin

truction man

dure, which anner; and

of the constreviously ide

next phasees:

ng) to advan

nagement (E

164

should

ruction entified

e. This

nce the

EPCM)

PERevDat

27


7 Ref

ALS Gold

CanaMine

CorbAIG

CorbUnpu

HedeGold

HedeInter

PantSeleColo

P&EAsse

SVSInma

Hennthe IAyacMico

TayloCanaProvDivis

1

ferences

Ammtec, d/Silver Ore S

adian Institueral Resource

bett, G., (200Online Journ

bett, G.J. (ublished pap

enquist, J.Wd Deposits, R

enquist, J.Wrpretation and

teleyev, A. (1ected British ombia Ministr

Mining Coessment on t

Ingenieros aculada proje

nessey, B.T.Inmaculada cucho, Southon Internation

or, B.E. (200ada: A Synthvinces, and sion, Special

(February Samples” Re

ute of Mininges and Mine

02). Epithermnal, April 200

(2007), Conper available

W., Arribas, AReviews in Ec

W. and Whited Exploration

1996) EpitheColombia

ry of Employ

nsultants Incthe Angela V

S.A.C, (Septect

and PressaProject, Prov

hern Peru, Nnal Limited, d

07), “Epitherhesis of MajoExploration Publication

2012), “Meeport No. 135

g, Metallurgyral Reserves

mal Gold fo02.

ntrols to Lon www.cor

A., Jr. and Gconomic Geo

e, N.C. (200n, Unpublish

ermal Au-Ag: Mineral Depment and Inv

c, (October Vein Inmacula

tember 2011

acco, R. (200vinces of PaI 43-101 tecdate amende

rmal Gold Deor Deposit-TMethods, G

No. 5, p. 113

etallurgical T587

y and Petrols adopted by

r Exploration

Low Sulphidrbettgeology.

Gonzalez-Urology, v. 13,

05), Epithermed PDAC/SE

Low Sulphidposit Profilesvestment, Op

2010), “Tecada Property

1) Environme

09), A Mineraarinacochas chnical reported 26 March

eposits”, in GTypes, DistricGeological A3--139.

Testwork C

leum (2005)y CIM Counc

nists, Austra

dation Epith.com.

rien, E. (200p. 245--277.

mal Gold--SiEG short cou

dation. In: Les, Volume 2pen File 199

chnical Repoy Ayacucho,

ental Impact

al Resource Eand Paucar

t prepared fo2009.

Goodfellow, Wct MetallogenAssociation

Conducted U

) CIM Definicil on 11 Dece

alian Institute

hermal Au-A

00), Explorat.

lver Depositurse notes, M

efebure, D.V2 – Metallic6-13, p. 41 -

ort And PreSouthern Pe

Assessment

Estimate for r de Sara Saor Ventura G

W.D. (ed.) Mny, the Evoluof Canada,

Upon Inma

tion Standarember 2005.

e of Geoscie

Ag Mineraliz

tion for Epith

ts: CharacteMarch 2005.

. and Hoy, Tc Deposits, - 44

liminary Ecoeru”

t completed

the Angela Vara, Departm

Gold Corporat

Mineral Depoution of Geo

Mineral De

165

culada

rds for .

entists,

zation,

hermal

eristics,

T. (eds) British

onomic

on the

Vein at ment of tion by

osits of ological eposits

PERevDat

28


8 Dat

Effec

Prep

ORIG

____

Clint

____

Ian D

____

Ange

____

R. M

____

Anth

1

e and Sig

ctive Date 11

pared by

GINAL SIGN

___________

ton Donkin, M

___________

Dreyer, MAus

___________

el Mondrago

___________

Mohan Srivas

___________

hony Sanford

nature Pa

1 January 20

NED AND ST

__________

MAusIMM(CP

__________

sIMM(CP) )_

__________

n, MAusIMM

__________

stava, P. Geo

__________

d, Pr.Sci.Nat.

ge

012

TAMPED

___________

P)_________

___________

___________

___________

M(CP) )_____

___________

o. )________

___________

)_________

__________

____Date

__________

_ Date

__________

___Date

__________

___Date

__________

___Date

166

PERevDat

29


9 Cer

1

rtificates oof Qualified Personss

167

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