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PERevDat
M
PR
IC
ITF1
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Cl
R.
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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
-0001 0
ionaation
ada al Reity S
ored this rep
P)
Geo
)
MM(CP)
Nat.
al Min
Projepor
Study
port:
nera
ject,rt ony
als
, Pern the
ru e
PERevDat
T
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.
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
L
Fi
Fi
Fi
Fi
Fi
Fi
Fi
Fi
Fi
Fi
FiSiCh
Fithfro
Fi
Fi
Fi
Fi
Fi
Fiw
Fiho
Figese
Figese
Figese
Fige
Fige
Fige
Fi
MN00012-RPT-0001v: 0 te: 11 January 2012
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 14.4 - Veometries oection line, w
gure 14.5 - Veometries oection line, w
gure 14.6 - eological do
gure 14.7 - eological do
gure 14.8 - 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
oss-section, Figure 14.1tersections
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
facing nort) along withshown as t
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
heast, showh the drill hohicker black
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
wing the inteoles within ±k lines
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
erpreted vei±50m of the
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
PERevDat
FiVe
Fisi
Fi
Fi
Fi
Fi
Fifo
Fi
Fi
Fi
Fi
Fi
Fi
Fi
Fi
Fith
Fi
Fi
Fi
Fi
Fi
Fi
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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 14.7 - Eutoff of $ 48
able 14.8 - 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
Estimated M.30 /t, as of
Estimated M.30 /t, as of
stimated Minf 11 January
Estimated Mof 11 Janua
Estimated M.30 /t, as of
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
ineral Reso11 January
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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.
MN00012-RPT-0001v: 0 te: 11 January 2012
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.
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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.
MN00012-RPT-0001v: 0 te: 11 January 2012
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.
MN00012-RPT-0001v: 0 te: 11 January 2012
-
-
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.
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
PERevDat
MN00012-RPT-0001v: 0 te: 11 January 2012
parts
poun
rock
run o
sem
seco
spec
squa
troy
unco
volu
weig
weig
weig
weig
year
1
s per million
nds
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
UCS
v/v
wt
% w/w
w/w
w/v
y
Symbol
11
PERevDat
3
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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.
MN00012-RPT-0001v: 0 te: 11 January 2012
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.
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
$23,000.08
Owne
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
17
r
PERevDat
4.
4.
MN00012-RPT-0001v: 0 te: 11 January 2012
Con
INMAN°30
INMAN°31
INMAN°33
INMAN°34
INMAN°6
INMANº 38
MINAO 20
MINAO 20
PUQ2005
QUE
QUE2008
TAR2007
TAR2007
INMA2011
* NPP
4 Prop
The Corpdemstakipointperfo
5 Peru
Undeconcof la
1
ncession
ACULADA 0
1
ACULADA 1
1
ACULADA 3
1
ACULADA 4
1
ACULADA 1
ACULADA 8
1
ASCUCH007A
1
ASCUCH007B
1
QUIOPATA 5
0
ELLOPATA 0
ELLOPATA 8A
0
ARUNQUI 7B
0
ARUNQUI 7A
0
ACULADA 1-1
0
PA – Payment n
perty Bound
concessionsporation (Mitarcated by ing system uts were convormed.
u’s Mining T
er Peruvian cessions. A Pnd on which
Code
0011032X01
0011172X01
011457XX01
011457YX01
0010698X01
0197205
0035007
0034907
10218505
10004999
10021908
10035207
10035107
10314811
not required as m
daries
s which comtsui) using reference to
using UTM cverted to UT
Title Laws
law, the righPeruvian minh it is located
Area (ha)
1000.0263
400.0001
976.5025
373.9997
999.3311
399.9985
999.9981
824.8503
940.0106
162.1163
564.6105
999.9983
999.9994
500.0000
minimum invest
mprise the Inthe old Pe
o local topogcoordinates. TM coordinat
ht to explorening concessd. The conce
Fees Paid 2011 (US$)
$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
$0.00
e first locatedystem, by w, Peru adop
sting mining Property boun
s is grantedndependent fagainst poss
Owne
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
Suyamarca
d by Mitsui which claimspted a new concession ndaries have
d by way of from the ownsible claim b
18
r
Mining s were
claim-corner
e been
mining nership by third
PERevDat
4.
4.
MN00012-RPT-0001v: 0 te: 11 January 2012
partimininis no
Accobasicconclaw tcom
Sinc(derepay year
Accoby SmininUS$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.
MN00012-RPT-0001v: 0 te: 11 January 2012
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.
MN00012-RPT-0001v: 0 te: 11 January 2012
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.
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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.
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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.
MN00012-RPT-0001v: 0 te: 11 January 2012
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.
MN00012-RPT-0001v: 0 te: 11 January 2012
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
PEMN00012-RPRev: 0 Date: 11 January
F
T-0001
y 2012
Figure 7.2 - Inmacullada Property Geoloogy Map
28
PERevDat
7.
7.
7.
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
Figur
1
re 7.3 - Geologyy of the Quelloopata Veins
30
PERevDat
7.
MN00012-RPT-0001v: 0 te: 11 January 2012
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,
PEMN00012-RPRev: 0 Date: 11 January
Figure 7.4 -
T-0001
y 2012
Longitudinal Sectioon with Grade Contoours for the Angela Vein
32
PERevDat
MN00012-RPT-0001v: 0 te: 11 January 2012
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.
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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.
MN00012-RPT-0001v: 0 te: 11 January 2012
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.
MN00012-RPT-0001v: 0 te: 11 January 2012
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.
MN00012-RPT-0001v: 0 te: 11 January 2012
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.
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
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MN00012-RPT-0001v: 0 te: 11 January 2012
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
and are pros Laboratorycanning tecample prepaription errors
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
ity
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
d the other folded over
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
Figur
Figur
1
re 12.1 - Verific
P&E
0
100
200
300
400
500
600
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re 12.2 - Verific
cation Sample R
E Site Visit
1142
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1143
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1
cation Sample R
Results for Go
t Verificatio
9114
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1
P&E Sam
Results for Silv
ld, June 2010
on Sample
9114
6
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1147
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ple Number
ver, June 2010
e Result for
2911
48
E529
1149
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r Ag: June
2911
50
2010
Original Ag VQA/QC Ag Va
48
Valuesalues
PERevDat
12
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MN00012-RPT-0001v: 0 te: 11 January 2012
2.3 Qua
Coreblanlabostandafter
The in senum
The by Iconta
IMZ resuresudeviaIMZ’
The gold-Rockrangover loweand assa
2.3.1 Dup
IMZ Apprsamassaassawas those
The showtwo adiffetheselabobut s
Sincdue
1
lity Assuran
e samples frks were insratory in Limdards and blr every 20th c
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
the Inmaculncluded theand duplicate
office staff andards, blanously high vathe acceptedn manager a
consist of fiveeralization, aa commerciaghly 0.3 g/t toAs discussed
es up to 30 gas the bette
ples
both pulp a0% of all saelected rand
mately 5% of nd were sentsecondary lby the prima
f duplicate as 12.3 and 12n ± 10% of tis indicates ratory checkcoarse rejec
most 90% of t
e of the dupntory control
ality Contro
ada were shthe entire s
standard or aused alternat
amples was samples, weand blanks w
ada assay r use of st
es (to monitor
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).
who implemeicates, lookinblank sampthe standardup with the la
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
ples or sampds. All anomaboratory.
hich were mae commercia
reference mr standards er standards andards used on the acc
plicates to eck assay. A sent back for re-assayory for checlyzed the sam
using scatter tes, almost aulp duplicaterecision in th
y problem wtly less prec0% of their av
ndicated anyr transcription
ffice where tared for deler every ten cf the five sta
uring loggingpurposes s
d with the co
y a QA/QC paccuracy), b
QC programcant discrep
ple results whmalous result
anufactured al standardsmaterials. Thrange from used by SG
d by IMZ spacuracy of the
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
by SGS froms purchasedhe gold stantrace quantiS covered o
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
eptable limit funts of gold ificant cross-
e the beginnwn any signks assay exemely low, athe trace am
r Plot for Coarratory to the D
sed as blankareos. A bladard.
nitored usingrol chart shofor blank assand silver,
-contaminatio
ning of the Iificant cross
xceeded 1.5round the 1s
mounts obser
rse Reject Dupluplicate Silver
ks for the Inank was inse
g control chaws the assasays. Since tthe acceptabon of gold or
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
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MN00012-RPT-0001v: 0 te: 11 January 2012
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
k was insertly; this resul
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
PEMN00012-RPRev: 0 Date: 11 January
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
PEMN00012-RPRev: 0 Date: 11 January
F
T-0001
y 2012
Figure 13.2 - Metalluurgical Drill Hole Loocation
57
PERevDat
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
% Au xtraction 6 Hours
AuR
96.5
97.7
97.4
ng 20 kg of eThese tests sumptions du
on
% Au xtraction 6 Hours
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
% Ag xtraction 6 Hours
AR
89.9
93.3
91.7
composite wbetter repre
mple size.
% Ag xtraction 6 Hours
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.
PEMN00012-RPRev: 0 Date: 11 January
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
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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
re 14.4 - Verticare 14.1) along wk lines
mains
rce veins shrough 14.5. Ame places, th
al cross-sectiowith the drill ho
al cross-sectiowith the drill ho
hown in mapAll of the ve
he dip is as lo
on, facing northoles within ±50
on, facing northoles within ±50
p view in Fieins dip to tow as 45°; in
heast, showing0m of the sectio
heast, showing0m of the sectio
gure 14.1 athe southeasn other place
g the interpreteon line, with ve
g the interpreteon line, with ve
are shown inst, with the es, the veins
ed vein geometein intersection
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
MN00012-RPT-0001v: 0 te: 11 January 2012
FigurFigurblack
Wirethe vhonosurfawirefexacwirefvolum
The loggthe g70 g/geolooverzoneposs
The consmineintervleast
1
re 14.5 - Verticare 14.1) along wk lines
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.
al cross-sectiowith the drill ho
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
on, facing northoles within ±50
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
heast, showing0m of the sectio
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
g the interpreteon line, with ve
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
ed vein geometein intersection
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
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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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
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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
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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
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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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
Figur
1
re 14.15 - Swathh plots compa
ring block estimates to originnal drill hole daata
83
PERevDat
14
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
“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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
TableJanua
CLAS
TableJanua
CLAS
TableJanua
CLAS
Table2012
CLAS
TableJanua
CLAS
Tablof thbeenis 11
1
e 14.6 - Estimatary 2012
SSIFICATION
Inferred
e 14.7 - Estimatary 2012
SSIFICATION
Inferred
e 14.8 - Estimatary 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
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Figur
1
re 14.18 - Resource tonnage vversus reportinng cutoff
90
PERevDat
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Figur
1
re 14.19 - Resource gold grad
de versus reporting cutoff
91
PERevDat
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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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
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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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
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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
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Figur
1
re 16.3 - Main Innfrastructure f
or Sub Level SStoping and Mining Details
100
PERevDat
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
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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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
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MN00012-RPT-0001v: 0 te: 11 January 2012
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
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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
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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
PEMN00012-RPRev: 0 Date: 11 January
F
T-0001
y 2012
Figure 18.1 - Route of High Voltage Transmission Line
118
PERevDat
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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
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MN00012-RPT-0001v: 0 te: 11 January 2012
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
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MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
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MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
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MN00012-RPT-0001v: 0 te: 11 January 2012
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
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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
20
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
II
II
II
II
II
II
II
II
II
II
I
Publ. Mus. Hist.
bro Rojo de las
mos de mamífe
r collection, trans
and their huntin
the Conservatio
and Flora Threa
EndemSpecies7]
X
X
X
X
X
X
X
Nat. UNMSM (A
Plantas endém
ros del Peru. R
sportation or exp
g, capture, pos
n of Nature and
atened Species.
129
mics s[1],[2],[3]
A) 49, 1-
micas del
ev. Peru
portation
ssession,
d Natural
Internet
PERevDat
20
20
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Meaof Na
0.2.4 Hum
An Aan awhicfootplithicthe pProjeCultudetemay
0.2.5 Stak
Therprojecomone
1
ning of the pature and Na
CRITICALavailable Endangereextinction
ENDANGEthat it meefacing a ve
VULNERAthat it meefacing a hi
NEAR THagainst thVulnerablecategory in
LEAST COthe criteriaNear Thre
man Interest
Archaeologicarea of 2,286ch are directprint. The arcc material. Inprocess of obect area. Thiure, where trmined; simiinclude an A
keholder Ma
re are no maect footprintmunity of Huhour drive re
For the so
o The
o The
o Lieu(whe
o Lieudel
protection caatural Resou
LLY ENDANGevidence ined, and it iin the wild.
ERED (EN) -ets any of theery high risk
ABLE (VU) -ets any of theigh risk of ex
REATENEDhe criteria be now, but n the near fu
ONCERN (LCa and does atened. Wid
Environme
cal Reconnai6.54 ha beintly located ochaeological
n order to probtaining the is step includthe relevanclarly, the doc
Archaeologic
apping
ajor towns or. However,uallhua and espectively fr
cial direct ar
e inhabitants
e inhabitants
utenant Goveere the minin
utenant GoveSara Sara (w
ategories, acrces (IUCN)
GERED (CRndicates thats therefore
- A taxon is Ee criteria A toof extinction
A taxon is Ve criteria A t
xtinction in th
D (NT) - A tabut does nois close to
uture.
C) - A taxonnot qualify espread and
nt
ssance Repng assessed.on areas cor indicators aotect potentiCertificate ofdes the presce of these cument will a
cal Rescue o
r villages locthe project the inhabita
rom the proje
rea of influen
of the comm
of the village
ernor of theng Project is
ernor of the dwhere the co
ccording to th:
R) - A taxont it meets considered
Endangered o E for Enda in the wild.
Vulnerable wto E for Vulne wild.
axon is Neaot qualify foqualifying fo
n is Least Cofor Critically
d abundant ta
ort has been. 23 possiblerresponding are mainly roal archaeolof Inexistence
sentation of acultural remalso explain r Salvage Pr
cated in the iwill be de
ants of the vect. The key
nce:
munity of Hua
e of Huancut
e district of Olocated);
district of Sanommunity of H
he Internatio
n is Criticallany of the to be facin
when the bengered, and
when the beserable, and
r Threatenedor Critically or or is like
oncern wheny Endangereaxa are inclu
n prepared fe archaeologto compone
ock shelters,ogical evidene of Archaeoan Archaeolo
mains to the the mitigatio
roject, if requ
immediate seveloped on illage of Huastakeholders
allhua (with 1
te (38 inhabit
Oyolo, provi
n Javier de AHuallhua is s
nal Union fo
y Endangercriteria A t
ng an extre
est available it is therefor
st available it is therefore
d when it haEndangered
ely to qualify
it has beened, Endangeuded in this c
for the area ogical sites wents of the I corrals, and
nce, Suyamaological Remaogical Projecviability of t
on policies touired.
urroundings surface lan
ancute, locas identified a
10 inhabitan
tants);
ince of Páuc
Alpabamba, settled);
r the Conse
ed when thto E for Cr
emely high
evidence indre considered
evidence inde considered
as been evad, Endangey for a threa
evaluated ared, Vulnera
category.
of the projecwere identified
nmaculada d concentratiarca is curreains (CIRA) ct to the Minthe project w
o be applied,
of the Inmand owned bted five hou
are:
nts);
car del Sara
province of P
130
rvation
e best ritically risk of
dicates d to be
dicates d to be
aluated red or atened
against able or
ct, with d, 9 of project ions of ently in for the istry of will be which
culada by the rs and
a Sara
Páucar
PERevDat
20
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0.2.6 Stat
Curr
The non-
The Agricto eaare t
In thowne
Land
The beloprop
As aneed
0.2.7 Impa
The negainser
Basemanregu
1
o LieuPari
o Rep
Key impac
o Two
o Theemp
For the so
o MunFranProj
o Theexpeare
us of Land O
rent status of
Inmaculada -agricultural l
community culture and, ach resident the property
he village of ed and used
d acquisition
Inmaculadangs to the
prietors of the
a result of thd to be re-set
act Identific
identificationative) of the prtion into the
ed on the reagement plalations in Pe
utenant Goveinacochas (w
presentatives
cts and expe
o families in H
e residents oployment and
cial indirect a
nicipal authoncisco de Rject are deve
e inhabitants ectations geclose to the
Ownership
f the property
mining projeand that belo
of Huallhua as a legal eland suitableof the comm
Huancute, t by the comm
a project hascommunity
e village of H
he project dettled.
ation and E
n and evaluaproject, in its environmen
esults, contran, including
eru and the e
ernor of thewhere the sm
s from local o
ctations are
Huancute ma
of the commd support for
area of influe
orities of the Ravacayco, eloped in the
of the smallenerated in te
project exec
y
ect is locatedongs to prop
is registerentity it is thee for the cult
munity.
the propertymunity.
s acquired mof Huallhua
Huancute.
evelopment,
valuation
ation of potes different stant and the ex
rol and mitigg monitoring
environmenta
district of Small village of
organizations
as follows:
ay need to b
munities of r community-
ence:
districts of Obased on thir district juri
villages of Perms of empcution area.
d on surface prietors of the
d as such in owner of thtivation of cro
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;
Huallhua an-developmen
Oyolo, San Jhe fact thatsdictions); a
Patarí, Belénployment or s
land of the e village of H
n the registre lands. Theops, while th
individual; ho
ement rights o on 1,500 h
o families fro
eable enviroised the systonse of the e
sures were t will compuyamarca.
co de Ravacs located); an
wns.
and
nd Huancutent projects.
Javier de Alpt different cnd
n, and Cascasupport to th
community oHuancute.
ration officese communityhe lands des
owever, the
on 870 ha ha that belo
om the villag
onmental imptematic analyenvironment
identified in ly with curr
cayco, provind
e expect to
pabamba, anomponents
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
ve and rojects ct.
mental mental
PERevDat
20
20
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The higheimpa
The
Prob
0.2.8 Envi
The to practivbiolo
The informea
0.2.9 Com
The envirexecspecimpa
1
results of ther importanc
acts of high s
main potenti
Alteration
Increased
Alteration
Alteration
Alteration
Alteration
Alteration
Alteration
bable social i
Positive: Gthe constru
Negative:
Negative:
Negative:
ironmental M
Environmenrevent, cont
vities. The apogical and so
EMP consisrmation for tsures applie
mmunity Rel
communityronmental scution of divecific social pacts. These p
Land acqurelocation
Local emp
Communicinformative
Participativ
e impact price have eit
significance w
ial environme
of the local r
surface and
of the superf
of surface w
of groundwa
of grass qua
from change
of terrestrial
mpacts are a
Generation ouction phase
Decrease in
Physical re-s
Alteration or
Managemen
ntal Managemrol and mitigpplication of ocial environm
sts of permanthe assessmd.
ations Plan
y relations tandards, anerse operatiprograms wiprograms are
uisition and pof affected p
ployment (hir
cation and e workshops
ve environm
oritization in ther “moderawere identifie
ental impacts
relief and lan
sub-surface
ficial drainag
water flows;
ater quality;
ality from soil
es in soil use
flora.
as follows:
of non-qualifie;
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
during
essary project
hysical,
rovides igation
ations, ng the
on this, social
on and
ans of
PERevDat
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0.2.10 Clos
A cothe rclosuclosumon
Surfa
Durinprov
A recondgrasfor ovege
Recl
The
Prog
Progcom
Fina
Soci
It hafive y
1
Training fo
Sustainab
sure Plan
onceptual cloreclamation oure. Approvaure sustainaitoring activit
ace Reclama
ng the conside adequate
-vegetation ditions predos species fro
optimum rootetation.
amation and
conceptual c
gressive Clo
gressive closponents whe
al Closure
Decommis
In additioreclamatioconsidered
Removal,
This activithe zone, rthis activity
Establishm
This worksurfaces w
Physical aareas and
al Closure A
as been anticyears of ope
or local inhab
le developm
osure plan haof impacted al will be neable environties.
ation and Re
struction stae material fo
plan, in ordeominant in thom the zonet-taking. This
d Closure by
closure activ
osure
ure activitiesere no furthe
ssioning and
on to decomon of accesd.
salvage and
ity comprisesre-contouringy.
ment of terrai
k includes bwith the natur
and chemicathe TSF.
Activities
cipated that aeration, and t
bitants and e
ent program
as been devareas, will ccessary from
nmental and
e-vegetation
ge the topsr the cover re
er to allow she area of ine will be uses contributes
Facility
ities of the m
s will be execr activities ar
demobilizati
mmissioningss roads th
disposal
s the removag and re-veg
in stability
backfilling asral landscape
al stability of
all social invthat counterb
education of l
s.
veloped for tcomply with am the Ministd social con
Plan
soil and subeinstatemen
satisfactory dnfluence is d for re-vege
s to minimizin
most importan
cuted during re envisaged
ion
g and remohat will rem
al of concretgetating, and
spects, recoe.
previously m
vestments wibalance amo
ocal organiz
he project wall requiremery of Energyndition, whic
bsoil will be t.
developmentproposed in etation, whicng soil erosi
nt project com
the operativd.
oval of themain for pos
te structuresthe disposa
onstruction,
mined area, w
ll decrease iounts will be
zations; and
within the EISents of Peruvy and Mines ch will be
recovered
t of the specthe EIS. Na
ch show satison and main
mponents ar
ve lifespan of
e installed st-closure m
s, backfilling l of solid was
and integra
waste dump
in a gradual generated th
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:
n those
e, the s also
al from ed from
overed
storage
he last ainable
PERevDat
20
MN00012-RPT-0001v: 0 te: 11 January 2012
deveentit
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0.3 Pub
As sbe imindire
The coor
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elopment inities.
itoring and R
r closure actitoring and od. This will mical and bio-term.
lic Participa
set out by Pemplementedectly affected
First Workattendees March 201
Second W29 attendeJuly 2011)
Participativdry season
Participativ
Public Aud
results of therdination with
tiatives imple
Reporting
ivities of all cmaintenancedemonstrateological cond
ation Proces
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kshop – Befofrom the c
11);
Workshop – Sees from the);
ve Environmn (28 to 30 J
ve Rural Ass
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e public parth Suyamarca
emented dur
components e tasks will e that previoditions, and
ss
slation, D.S.o assure acting project. I
ore the begincommunities
Simultaneouse communitie
mental Monitoune 2011);
sessment Wo
ecember 20
ticipation proa, the local po
ring the mine
and the reclbe perform
usly affectedthat they w
. N° 028-200tive participan this contex
nning of the of Huallhua
sly held with es of Huallh
oring, consis
orkshops (16
11).
ocess were population and
e life and/or
lamation of ted by Suya
d areas are sill not gener
08-EM, a puation of the xt, the follow
Impact Assea and Huan
the Impact Aua and Hua
sting of wate
6 and 17 July
positive, and d local autho
r social orga
the project aramarca for astable with rerate negative
blic participapopulation
ing consultat
essment Studncute respec
Assessment ancute respe
er quality mo
y 2011); and
all the worksorities.
anizations or
rea are coma minimum espect to phe impacts ov
ation processthat is directions were he
dy, with 53 actively (24 a
Study, with 4ectively (23 a
onitoring duri
shops were
134
public
pleted, 5-year
hysical, ver the
s must ctly- or eld:
and 43 and 25
41 and and 24
ng the
held in
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21
21
MN00012-RPT-0001v: 0 te: 11 January 2012
1 Cap
1.1 Cap
1.1.1 Gen
The secti
The
1.1.2 Cap
TablInmano aplantcamproje
The
1
pital and O
ital Cost Su
eral
capital cost ions.
following pa
Ausenco P
o Proc
o Plantran
o Perm
o TSF
o Was
o Inte
o Wor
o Mai
o EPC
MICSAC
o Mine
o Mine
Suyamarc
o Site
o Own
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
Operating
mmary
of the projec
rties have pr
Peru S.A.C.
cess plant an
nt infrastrucsmission line
manent acco
F and raw wa
ste dumps;
rnal site acc
rking capital
n access roa
CM costs rela
e developme
e equipment
ca
e power supp
ner’s cost.
timate Sum
vides the suect. The cosor escalation
waste dumpmates are coeveloped on a
rameters and
was based on
is only for CThese pas
related studi
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
PERevDat
MN00012-RPT-0001v: 0 te: 11 January 2012
Data
The and variadate weat
Tabl1 JaThe EPCcapit
Table
Pro
Pro
Hig
Min
No
Te
Ind
Ow
1
The estima
o Exp
o Fina
o Cap
o Esc
o App
o Perm
a for these es
Feasibility
Mine plan;
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
ocess Plant In
gh Voltage Po
ne
on Process Pla
mporary Facil
directs
wners Costs
ate excludes
ploration and
ancing relate
pitalized inter
calation;
plication of le
mitting and c
stimates hav
level engine
;
hical informa
ical investiga
y equipment p
y unit costs
recent comp
n provided b
y of $24.9 Mvered by anyhe Estimate of 1 Octob
rse political o
vides an ovuntil ramp-uestimate wa
d fees includponent as pe
Project Capita
Descripti
nfrastructure
wer Supply
ant Infrastructu
ities
s:
developmen
ed charges (e
rest and stan
vies, taxes o
community re
ve been obtai
eering design
ation obtained
ation;
proposals;
from local
pleted similar
by Suyamarc
(7.8% of ovy project acc
basis, escaer 2011, abor regulatory
verall summp is complet
as developedded within ter the JV agr
al Costs by Are
on
ure
nt drilling pos
e.g., fees, co
ndby fees fro
or customs d
elations (ass
ined from nu
n;
d from site s
contractors
r studies and
a.
verall project curacy provi
alation of fielbnormalities
developmen
ary of the ted and full d based on athe indirect reements out
ea
T
st January 20
onsultants, et
om third party
uties; and
umed to be i
umerous sou
urvey;
for civil, co
d projects; an
CAPEX) cosion. Thesed constructioin industrial
nts.
capital costscale produan EPCM prcosts. This tlined in Sect
Total Cost ($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
21
MN00012-RPT-0001v: 0 te: 11 January 2012
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
ure
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
MN00012-RPT-0001v: 0 te: 11 January 2012
Min
Min
Min
Pas
Tot
1.1.4 Proc
The as o
Table
Prim
Sto
Grin
Lea
CC
Mer
Gol
Det
Rea
Wa
Air
Pla
Gen
Tot
1.1.5 Sust
Sust$104ongo
An aproc
The
1
ne Offices and
ne Sample Pre
ne Vehicle Wo
ste Backfill Pla
tal
cess Plant C
process planutlined in Se
e 21.4 - Process
mary Crushing
ckpile and Re
nding
aching
D and Solutio
rrill Crowe
d Room
toxification and
agents
ter Supply and
Supply and D
nt Control Sys
neral (fencing
tal
taining Cap
taining capita4 M over theoing tailings d
allowance ofess plant eq
costs associ
Descriptio
d Change-room
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 $50,000 peuipment repl
iated with clo
on
ms
om
t Summary
st was derivee costs per a
l Cost Summar
cription
d Conveying
nt
posal
(excluding da
sel storage, fue
ummary
ent for the prThis cost covogressive re-
er annum hlacement.
osure and pr
T
ed based on area are sum
ry
m cost)
el bowser)
roduction pevers the deve-habilitation a
has been ma
rogressive re
Total Cost($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 ($M)
12.3
2.97
19.8
12.3
8.69
11.3
2.22
4.30
4.80
2.84
3.07
1.24
3.10
88.9
ented in Tabthe Angela Vcosts.
taining capit
were supplie
operations se
ble 21.5 andVein to prod
al associate
d by Suyama
138
elected
d totals uction,
ed with
arca.
PERevDat
21
21
21
MN00012-RPT-0001v: 0 te: 11 January 2012
Table
Mine
Proceand Infras
TSF progrcapita
Progrhabili
Closu
Total
1.2 Ope
1.2.1 Gen
The prockey c
The fluctu
1.2.2 Sum
A su
Table
Unde
-
-
-
Proc
Gene
TOTA
The
1
e 21.5 - Sustain
($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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
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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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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$88.5 million
s 40% share
ers for Inma
49,600
1,682,000
78,000
313,000
10,600,000
488,000
91
74
133
262
26 / 21
136 / 95
85 / 57
63 / 40
costs include dido not include
of the base cas
ts to determine
perating costs w
tion and eco
152
lion on n to be of the
culada
0
0
0
0
0
0
4
3
2
5
7
0
rect site workers
se metal
the cost
would be
onomic
PERevDat
MN00012-RPT-0001v: 0 te: 11 January 2012
Table
Cate
IRR
Cash($ 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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
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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
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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
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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
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MN00012-RPT-0001v: 0 te: 11 January 2012
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,
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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
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MN00012-RPT-0001v: 0 te: 11 January 2012
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
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MN00012-RPT-0001v: 0 te: 11 January 2012
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
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MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
MN00012-RPT-0001v: 0 te: 11 January 2012
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
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MN00012-RPT-0001v: 0 te: 11 January 2012
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
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sIMM(CP) )_
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n, MAusIMM
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stava, P. Geo
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d, Pr.Sci.Nat.
ge
012
TAMPED
___________
P)_________
___________
___________
___________
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____Date
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_ Date
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___Date
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166
PERevDat
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9 Cer
1
rtificates oof Qualified Personss
167