Atacama Pacific Gold Corporation

TECHNICAL REPORT

on the

CERRO MARICUNGA GOLD PROJECT

Region III CHILE

prepared for

ATACAMA PACIFIC GOLD CORPORATION

330 Bay Street, Suite 1210, Toronto, Ontario Canada M5H 2S8

October 7, 2011

Prepared By: Michael Easdon, Oregon Reg. Prof. Geologist Alcántara 1128, Depto. 905, Las Condes Santiago, Chile [email protected]

TABLE OF CONTENTS 1.0 SUMMARY ...... 1 2.0 INTRODUCTION ...... 5 3.0 RELIANCE ON OTHER EXPERTS ...... 7 4.0 PROPERTY DESCRIPTION AND LOCATION ...... 8 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ...... 13 6.0 HISTORY ...... 15 7.0 GEOLOGICAL SETTING AND MINERALIZATION ...... 15 7.1 PROPERTY GEOLOGY: ...... 16 8.0 DEPOSIT TYPE ...... 33 9.0 EXPLORATION ...... 34 10.0 DRILLING ...... 42 11.0 SAMPLE PREPARATION, ANALYSES AND SECURITY ...... 47 12.0 DATA VERIFICATION ...... 55 13.0 MINERAL PROCESSING AND METALLURGICAL TESTING ...... 56 14.0 MINERAL RESOURCE ESTIMATES ...... 60 14.1 Gold Mineralization Envelopes ...... 63 14.2 Capping and High Yield Restrictions ...... 69 14.3 Variography ...... 71 14.4 Resource Estimation ...... 76 14.5 Validations ...... 79 14.6 Resource Categorization ...... 81 14.7 Specific Gravity Determination ...... 82 15.0 MINERAL RESERVE ESTIMATES ...... 83 16.0 MINING METHODS ...... 83 17.0 RECOVERY METHODS ...... 83 18.0 PROJECT INFRASTRUCTURE ...... 83 19.0 MARKET STUDIES AND CONTRACTS ...... 83 20.0 ENVIRONMENTAL STUDIES, PERMITTING OR COMMUNITY IMPACT ...... 83 21.0 CAPITAL AND OPERATING COSTS ...... 85 22.0 ECONOMIC ANALYSIS ...... 86 23.0 MARKET STUDIES AND CONTRACTS ...... 86 24.0 OTHER RELEVANT DATA AND INFORMATION ...... 88 25.0 INTERPRETATION AND CONCLUSIONS...... 88 i

26.0 MARKET STUDIES AND CONTRACTS ...... 89 27.0 REFERENCES ...... 90 28.0 CERTIFICATE OF AUTHOR ...... 94

FIGURES

Figure 1.1 Location Map of the Maricunga Gold Project and Major Mines of Chile ..... 3 Figure 4.1 Detailed Location Map of the Cerro Maricunga Gold Project ...... 9 Figure 4.2 Cerro Maricunga Concession Map ...... 10 Figure 7.1 Regional Geology and Deposits of the Maricunga Belt ...... 19 Figure 7.2 Maricunga Property Geological Map ...... 20 Figure 7.3 Legend for Figure 7.2 ...... 20 Figure 7.4 Cerro Maricunga – Geology of the Mineralized Zone ...... 21 Figure 7.5 Schematic Cross Section Looking NS ...... 22 Figure 9.1 Cerro Maricunga Trenching ...... 36 Figure 9.2 Cerro Maricunga – Phoenix / Lynx / Crux Zones ...... 37 Figure 9.3 Shaded Pole Reduced Ground Magnetics ...... 40 Figure 9.4 Interpretation of IP Results Overlain on Ground Magnetics ...... 40 Figure 9.5 IP – Resistivity Line 479000 ...... 41 Figure 10.1 Maricunga Project – Drill Hole Plan ...... 43 Figure 10.2 Cross Section 2011 NW – Lynx Zone ...... 44 Figure 10.3 Cross Section 2400 NW – Lynx Zone ...... 45 Figure 10.4 Cross Section 1600 NW – Phoenix Zone ...... 46 Figure 11.1 DDH Sample Preparation Flow Diagram ...... 50 Figure 11.2 Maricunga QA/QC Geostatistics RC-DD Gold Pulp Duplicates ...... 54 Figure 14.1 Cerro Maricunga – Non scaled schematic level plan - Model ...... 64 Figure 14.2 3-D View of Cerro Maricunga’s Mineralized Zones ...... 65 Figure 14.3 3-D Top Views – Mineralized Zones and Drillholes ...... 66 Figure 14.4 Gold Grade Box Plot within Mineralized Envelopes ...... 67 Figure 14.5 Gold Grade Log Probability Plot within Mineralized Envelopes ...... 67 Figure 14.6 Histogram – Au Grades – Lynx Zone ...... 68

Figure 14.7 Box Plot – Au Grades – Lynx + Phoenix + Crux Zones, and Out ...... 69 Figure 14.8 Log Probability Plot – Lynx + Phoenix & Crux Zones and Out ...... 69 Figure 14.9 Down the hole indicator variogram – North and Central Zones (1+2) ...... 70 Figure 14.10 Down the hole indicator variogram – Outside ...... 71 Figure 14.11 Correlogram Map – Au-Lynx+Phoenix Zones (1+2) ...... 72 Figure 14.12 Correlogram Map – Au-Crux Zone (3) ...... 72 Figure 14.13 Correlogram Map – Au-Outside Mineralization Envelopes (0) ...... 73 Figure 14.14 Down the hole correlogram – Au-Lynx + Phoenix Zones (1+2) ...... 73 Figure 14.15 Down the hole correlogram – Au-Crux Zones (3) ...... 74 Figure 14.16 Down the hole correlogram – Au-Outside Mineralization Envelopes (0) . 74 Figure 14.17 Directional Variogram – Au-Lynx + Phoenix Zones (1+2) ...... 75 Figure 14.18 Directional Variogram – Au-Crux Zones (3) ...... 75 Figure 14.19 Directional Variogram – Au-Outside Mineralization Envelopes (0) ...... 76 Figure 14.20 Lynx Zone Section ...... 79 Figure 14.21 Phoenix Zone Section ...... 80 Figure 14.22 Crux Zone Section ...... 80 Figure 20.1 Cerro Maricunga Property Location Relative to National Park ...... 85 Figure 23.1 Properties Adjacent to the Maricunga Project ...... 87

iii

TABLES

Table 1.1 Cerro Maricunga 2011-2012 Phase III Exploration Budget ...... 2 Table 1.2 Cerro Maricunga Resource Estimate – August 2011 ...... 4 Table 4.1 Maricunga Mining Concessions ...... 11 Table 4.2 Cerro Maricunga Concessions ...... 12 Table 9.1 Cerro Maricunga 2009 – 2010 Work Program Summary ...... 34 Table 9.2 Cerro Maricunga 2010 – 2011 Work Program Summary ...... 34 Table 11.1 Summary of QA/QC results for duplicate samples Au ...... 54 Table 13.1 Preliminary Maricunga Bottle Roll Metallurgical Test Work (2008) ...... 56 Table 13.2 Summary of Column Leach Test Results ...... 57 Table 13.3 Metallurgical Test Results - 1.0 to 19.0 mm Grind Bottle Rolls ...... 58 Table 13.4 Summary of Bottle Roll Leach Test Results – August 2011 ...... 59 Table 14.1 Maricunga Indicated and Inferred Resources...... 60 Table 14.2 Cerro Maricunga – Geological Resources by Zone - 2011 ...... 61 Table 14.3 Statistics on Drilling Phases 2010 and 2010-2011 and QA/QC ...... 62 Table 14.4 Capping and High Yield Restrictions (HYR) ...... 71 Table 14.5 Cerro Maricunga – Nugget Effect ...... 74 Table 14.6 Variogram Modeling Parameters ...... 76 Table 14.7 Au Estimation Plan ...... 78 Table 14.8 Block Model Statistics ...... 78 Table 14.9 Average Density Measurements for Gold Bearing Lithologies ...... 82

1.0 SUMMARY

Mr. Carl Hansen, President and CEO of Atacama Pacific Gold Corporation (“Atacama”) has retained Michael Easdon to prepare a report which is in compliance with the requirements of Canadian National Instrument 43-101, and which addresses mineral exploration at the Cerro Maricunga Gold Project (“Maricunga”), located in the high Andes, Chile, and which describes the work performed, and the results obtained by, or on behalf of, Atacama on the project to date. This report, which is effective as at October 7th, 2011 updates the August 20th 2010 Technical Report “Easdon M., Technical Report on the Cerro Maricunga Gold Project, Region III, Chile” prepared for Atacama Pacific Gold Corporation and filed on SEDAR ((www.sedar.com).

Atacama is a Canadian exploration company with expertise in the identification, acquisition, exploration and development of precious metal mining projects. Through its Chilean subsidiary, Minera Atacama Pacific Gold Chile Limitada (“Atacama Chile”, or “Atacama”), owns and/or controls the Maricunga property.

The Maricunga property demonstrates particularly interesting mineral potential and is described in detail in this report. The work that Atacama has conducted at Maricunga (trenching, mapping, geophysics and drilling) has been designed to explore for, and potentially develop, an economically viable mining operation; however there are no guarantees that this potential will be realized. As at June, 2011, an estimated US $16,100,000 has been spent on exploration and development at Maricunga.

On October 24, 2008, Atacama Chile, (the 99.99% owned Chilean subsidiary of Atacama) entered into an agreement with the SBX Consultores Limitada (“SBX”) to purchase the Cerro Maricunga 1-22 Concessions which form the basis for the Maricunga property. These concessions were sold to Atacama for a total price of 1,000 Chilean Unidades de Fomento (“UF”). On January 13, 2010, Atacama Chile entered into an agreement with the SBX to purchase the Elionora 1-18 Concessions which are contiguous on the west side of the Maricunga property. These concessions were sold to Atacama Chile for a total price of US $795,381. On December 3, 2009, Atacama Chile entered into an agreement with the SBX to purchase the Mary 1-10 Concessions, which overlay the other concessions forming the Maricunga property, for a total price of US $250,000. The Maricunga property concessions are 100% controlled by Atacama. The combined Maricunga et al contiguous concessions comprise a total of (in part overlapping) 28,310 hectares and which effectively control 15,840 continuous hectares. There are no third party royalties applicable to the Maricunga property concessions and Atacama has a 100% interest in the Project.

On August 31st, 2011, Atacama entered into a purchase-option agreement for the Santa Teresa property (473 has) which is located to the northwest of the Maricunga deposits and contiguous with the Maricunga concessions. The terms call for a total price to of $3,000,000 to be paid over a 3 year period, and contain a 1.5% NSR royalty clause of which 50% can be purchased for $1,000,000.

Per 43-101 requirements, the author has reviewed the proposed Phase III 2011-2012 exploration program and budget and has commented on its appropriateness if, in his technical experience, he believes that the properties continue to be of merit and warrant continuing exploration. Atacama has prepared a drilling and exploration budget for the Maricunga Project that provides for field work, management and administration to September 2012. The Phase III exploration program is budgeted to total US $24,500,000 as summarized in Table 1.1. The Phase III program will comprise a total of 42,000 m of combined diamond (“DD”) and reverse circulation (“RC”) drilling with the objective of increasing the size of the resource and upgrading the resource to the measured and indicated category.

Table 1.1 – Cerro Maricunga 2011-2012 Phase III Exploration Budget

ITEM Total USD Drilling / Trenching $15,120,000 Management / Personnel $3,900,000 Assaying $650,000 General Project / Property $360,000 Metallurgical / Economic Studies $550,000 Water Exploration Activities $2,380,000 Contingencies $1,540,000 Exploration Total $24,500,000

The Maricunga Project (Figure 1.1) is located in the high Andes approximately 117 straight-line kilometres (“km”) northeast of the city of Copiapó. Road access to the project area is generally good. Although there is a producing silver-gold mine (La Coipa) and other former producing mines in relatively close proximity to Maricunga, there is no significant infrastructure in the immediate area of the Project.

Regional geochemical sampling ca 1980 reportedly returned anomalous gold values in the area of the eroded Ojo de Maricunga stratovolcano. Atacama is not aware of any work having been conducted on the property between that time and when SBX filed its original concessions and initiated exploration activities during the 2007-2008 summer field season. The current exploration and development concept is based upon SBX’s initial identification and recognition of gold bearing, up to 28 grams per tonne gold (“g/t Au”) in grab samples and 3.6 g/t Au over 5 metres (“m”) from trenching, mineralization in trenches, outcrop and float. SBX also completed a ground magnetic survey and 2 lines of Induced Polarization (“IP”) geophysics which assisted in substantiating the predominant NW structural trend within which the gold mineralization is localized.

Figure 1.1 - Location Map of the Maricunga Gold Project and Major Mines of Chile

Drafted by SBX

The gold mineralization is largely associated within zones of black banded (grey) quartz veinlets which are developed within and/or flanking phreatic / phreatomagmatic / volcanic / hydrothermal breccias associated with domal porphyritic Miocene dacitic- andesitic intrusives. Much of the lower grade (150-350 ppb Au) mineralization in breccias appears to be associated with breccia clasts containing the veinlets as well as finely milled vein clasts.

During the 2008-2009 field season, Gold Fields Corporation (“GFC”), via a combination of additional trenching, sampling and IP, demonstrated that the zone of mineralization potentially had a strike extent of +2,500 m and a width of up to 500 m.

The work that Atacama has conducted at Maricunga (trenching, mapping, geophysics and 2 stages of drilling) has been designed to explore for gold mineralization and to initiate and advance the development of the mineral resources, as indicated in Table 1.2.

During the period February - April, 2010, 5 RC (1,422 m) and 3 DD (720 m) holes were drilled for a total of 2,142 m; and, during the summer 2010-2011 field season (October 2010 thru May 2011), a total of 60 RC (24,580 m) and 22 DD (6,881 m) holes were completed at Maricunga. To date, a total of 33,603 m of drilling in 90 holes have been 3

completed at Maricunga. Atacama has also continued its program of mapping and trench sampling along and across the principal mineralized NW-SE trend.

Using a cut-off grade of 0.3 ppm Au, a resource estimate (SRK et al, Sept., 2011) of 92.8 million tonnes at a grade 0.54 g/t Au (1.616 million ounces gold) in the indicated category and 116.7 million tonnes grading 0.52 g/t Au (1.949 million ounces gold) in inferred resource has been established. Table 1.2 summarizes the resource estimate at cut-off grades ranging between 0.1 and 0.8 g/t Au.

Table 1.2 - Cerro Maricunga Resource Estimate - August 2011

Indicated Category Inferred Category Cut- Gold Gold off Tonnes Grade Ounces Tonnes Grade Ounces (g/t Au) (millions) (g/t Au) (000’s) (millions) (g/t Au) (‘000’s) 0.1 163.1 0.40 2,094 354.6 0.29 3,321 0.2 134.1 0.45 1,949 202.5 0.40 2,626 0.3 92.8 0.54 1,616 116.7 0.52 1,949 0.4 59.8 0.65 1,247 69.2 0.64 1,429 0.5 40.8 0.74 973 47.7 0.73 1,121 0.6 28.7 0.83 761 34.4 0.80 887 0.7 19.4 0.91 569 21.4 0.90 617 0.8 13.0 0.99 413 13.8 0.98 435

An ‘Indicated Mineral Resource’ is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. It cannot be assumed that the Inferred Mineral Resources will be upgraded to an Indicated Resource as a result of continued exploration. Furthermore, it cannot be assured that either the Indicated or the Inferred Mineral Resources will be converted to a “Reserve” category at such time as feasibility studies are initiated.

The metallurgical work that has been conducted between 2008 and 2011 on material taken from the oxide-associated mineralization returned gold recoveries of between 76.8% and 91.0%. In May 2010, Atacama submitted +260 kg of quartered gold-bearing drill core for a series of metallurgical leachability tests to include three column tests at various crush ranges and five cyanide bottle roll tests (5 and 1 kg charges) to assess the impact of grind fineness on recovery. The bottle rolls tests varied in size range from 1 mm to 19.6 mm and each bottle roll was run in duplicate. At the 19.6 mm crush size, initial cyanide (NaCN) bottle roll (5 kg) test results returned recoveries of 75-81% from 240 hour tests. The column tests, at a P80 of 19 mm, also indicated good gold 4

recoveries (79 to 89%). Gold leach kinetics were fast with 75 to 90% of the extractable gold removed during the first 7 days of column leaching. Early indications are that the NaCN consumption in the production heaps will be low (0.25–0.35 kg/t). There are no cyanicides (Cu, So, etc.) or deleterious elements (Hg) that go into solution. Lime consumption in the tests is in the 3 to 4 kg/t range.

The current exploration and development concept is based on the results of the prior work and studies. This work has determined that the gold mineralization in the Cerro Maricunga area is related to the emplacement of one (or more) recent (Miocene) high level, porphyry gold bearing system(s) whose emplacement is structurally controlled and which is predominantly hosted in breccias (phreatic, phreatomagmatic, and hydrothermal in part) developed on the flanks of, and within daciandesitic domes and brecciated andesitic flows, tuffs and volcanoclastic sediments related to the development of a Miocene phreatomagmatic stratovolcano which is part of a +60 km north trending chain of similarly mineralized stratovolcanoes.

Per 43-101 requirements, the author has reviewed the proposed staged 2011-2012 exploration program and budget, and has commented on their appropriateness for the continued to development and exploration of the Maricunga. Atacama has prepared a budget for the Phase III program that provides for fieldwork, management and administration to mid-2012. The budget is estimated to total US $24,500,000 and will largely comprise 42,000 m of combined DD and RC drilling.

2.0 INTRODUCTION

Mr. Carl Hansen, President and CEO of Atacama Pacific Gold Corporation (“Atacama”) has retained Michael Easdon to prepare a report which is in compliance with the requirements of Canadian National Instrument 43-101, and which addresses mineral exploration at the Cerro Maricunga Gold Project (“Maricunga”), located in the high Andes, Chile, and which describes the work performed, and the results obtained by, or on behalf of, Atacama on the project to date. The Technical Report has been prepared in compliance with the TSX regulations which state that a Technical Report must be prepared with 45 days of the issuance of a Press Release which announces significant information with regard to the property in question. The Press Release which Atacama Pacific Gold released on August 24th, 2011 reported a significant resources estimate for Maricunga as noted in Table 1.2.

Atacama Pacific Gold Corporation (“Atacama”) is a publicly traded, limited liability company which is listed on the Toronto Venture Exchange and trades under the stock symbol “ATM”. The corporate head office is located in Toronto, Ontario, Canada. Atacama was established under the Canada Business Corporations Act (federal corporations’ law of Canada) on June 12, 2008. The registered office of Atacama is located at 330 Bay Street, Suite 1210, Toronto, Ontario, M5H 2S8, Canada. Atacama’s head office is at the same address.

Michael Easdon, PGeol., Chilean Registered Geologist (“author”) and a Qualified Person, is an independent consulting geologist and has been retained to prepare an independent summary of scientific and technical information in compliance with the requirements of National Instrument 43-101 (“NI 43-101”) which reports on the advances made on developing Atacama’s Maricunga Gold Project during the 2010 – 2011 exploration period. M. Easdon assumes sole responsibility for the contents of this report.

The author of this report, Mr. Easdon, is considered to be independent Qualified Person under NI 43-101CP guidelines and is responsible for verifying the accuracy of the scientific and technical information contained in this report. The author was requested to review the work that was performed by Atacama Chile and to confirm that Maricunga, as summarized in this report, continues to warrant being held by Atacama. Mr. Easdon was assisted in the preparation of this report by Sergio Diaz, a Chilean Registered Geologist and a Qualified Person as defined by NI 43-101 guidelines.

This report is based on various geological reports, maps, assorted technical reports and papers, published government reports, company internal documents, letters, and memorandums, and public information as listed in “Section 27 - References” at the conclusion of this report. The author has assumed that all of the information and technical documents listed under Section 27 are accurate and complete in all material respects. The author also considers that the internal documents that support the work and activities on behalf of, or for, Atacama contain relevant and accurate data.

The author visited Maricunga on April 12th, 2008, and while the property was being drilled on April 7th, 2010 (Phase 1 program) and again on March 30th, 2011 (Phase II program). The author confirmed that the appropriate Quality Control/Quality Assurance (“QA/QC”) was being performed. The author also reviewed the mapping and trench sampling that was performed at Maricunga. Mr. Diaz was contracted by Atacama to manage the 2010-2011 drill program. He participated in the drill control (spotting and orientation of the holes) as well as assisted in the logging of the cuttings/drill core, and confirmed that the proper QA/QC was being performed on the extraction of the cuttings/drill core. Mr. Diaz was on site during the period October 2010 – April 2011. The author also revisited and reviewed the storage and sample preparation facility in Copiapó. Based on various past visits to the storage and sample preparation facility located in Copiapó, the author is fully confident that the procedures being employed by Atacama are appropriate and correct.

“Maricunga” refers to the Cerro Maricunga Gold Project and is the subject of this report; “Atacama” refers to Atacama Pacific Gold Corporation (TSXV-ATM), or to its Chilean subsidiary Minera Atacama Pacific Gold Chile Limitada; “SBX” refers to SBX Asesorias E Inversiones Ltda or to SBX Consultores Limitada, a Santiago-based geological consulting companies which provided consulting and contract labour services to Atacama.

3.0 RELIANCE ON OTHER EXPERTS

This document has been prepared with input from Atacama. The author has relied upon, and believes there is a reasonable basis to rely upon, the contribution of Atacama, SBX and other parties mentioned below as all of the information presented in this report is verifiable.

The author has relied upon information provided by Atacama that describes the terms of the purchase option agreement, and subsequent modifications, under which Atacama purchased the project and on data that describes the exploration rights, obligations and concession dimensions and coordinates. The author is not competent to comment on the ownership of the mining rights but has relied on information provided to him by Atacama’s attorney, Sr. Antonio Ortúzar (Baker McKenzie), Atacama’s legal counsel in Santiago (“Legal Opinion on the Status of the Cerro Maricunga Project”, 2011). The author has reviewed data that indicates that the appropriate concession payments have been properly paid and that the concessions are valid through April, 2012, and that the property and the mineral rights are 100% owned by Atacama (Refer to Section 4). The author has been informed by Atacama and its legal counsel that, to the best of their knowledge, there are no current or pending litigations that may be material to the Maricunga Project assets. Atacama assumes full responsibility for statements on mineral title and ownership. The author does not accept any responsibility for errors pertaining to this information. To date, Atacama has not obtained any water rights in the vicinity of Maricunga, and there is no assurance that Atacama will be able to obtain a nearby source of water. Atacama has been buying and transporting water for drilling purposes. A viable alternative for process water, which is being used by at least two other mining companies in Chile, is the desalinization and pumping of sea water.

The author has relied on reports and data provided by Atacama which describe the work performed during the 2010 – 2011 field season at Maricunga. The description of geology and related topics are based on information provided to him by Atacama: Dietrich, A., Dec., 2010; Report October-December, 2010, Ojo de Maricunga Prospect; prepared for Minera Atacama Pacific Gold Chile; Diaz, S., July, 2011; Cerro Maricunga Gold Project, Atacama Region, Northern Chile - Report on Phase 2 Drill Exploration Program (September 2010 – May, 2011); Dietrich, A., Dec., 2010; Report October- December, 2010, Ojo de Maricunga Prospect; prepared for Minera Atacama Pacific Gold Chile. The author has also relied on his personal field observations.

The author has relied on the 2008, 2009 and 2011 Argali Geofisica E.I.R.L. reports on the Induced Polarization & Resistivity and Ground Magnetic Surveys that were conducted at Maricunga on behalf of Atacama. Argali is known to the author and is known to competent and reliable (Refer to Section 9 - Exploration). However the author does not accept any responsibility for errors pertaining to this information.

Atacama contracted Ms. Natasha Tschischow to monitor the quality assurance/quality control (QA/QC). Ms. Tschischow has extensive experience in monitoring sampling procedures for QA/QC and has, in conjunction with Dr. E. Magri (Sept., 2011), provided

a detailed report with supporting statistics. In addition to reviewing the Tschischow/Magri QA/QC report, the author has reviewed the assay certificates for the 2010-2011 drilling program at the Atacama offices in Santiago. The author found no significant discrepancies with the assay certificates and conclude that Atacama’s QA/QC program is adequate to identify any problems which might have arisen with respect to the sample preparation and analysis.

The author has relied on Dr. E. Magri, Mining Engineer for the validation of the SRK resource estimation. Dr. Magri is considered to be a Qualified Person under NI 43- 101CP guidelines by virtue of his experience, education, and registration as a Fellow in the South African Institute of Mining and Metallurgy (SAIMM).

The author is confident that the information provided in this report is verifiable in the field and that the report is a reasonable representation of the Maricunga Gold Project mineralization, and that it provides a complete summary of the exploration that has been conducted at Maricunga to the date of this report.

An Environmental study of base line was completed by Arcadis Chile. This study characterized the Flora, Vegetation, Fauna, Historical-Archeological Heritage and Indigenous communities present in the project area. An environmental impact statement, “Declaración de Impacto Ambiental” (“DIA”) was submitted to the environmental authorities (COREMA) on May 2011. The DIA permits the exploration and development to continue at Maricunga. Final approval of the DIA is expected shortly.

The author is not an insider, associate, nor affiliate of Atacama. The results of the technical review by the author are not dependent on any prior agreements concerning the conclusions to be reached, nor are there any undisclosed understandings concerning any future business dealings between the author and Atacama.

4.0 PROPERTY DESCRIPTION AND LOCATION

The Maricunga gold deposits (refer to Section 14) are located at the southeastern extent of the Cerro Maricunga concessions. The principal area of the gold resource is protected by mining concessions (3,110 hectares) with the balance of the property comprising exploration concessions. The approximate center of the Maricunga Project is located at 27° 01' South Latitude and 69° 13' West Longitude and at UTM (PSAD 56) coordinates N7,013,000 and E479,000. (Figure 4.1).

Maricunga is located approximately 20 km due south of Kinross Gold’s La Coipa Au-Ag mine, approximately 60 km north of Kinross’s Maricunga (previously named Refugio) Gold Mine and 40 km north of Andina Minerals’ Volcan Gold Project. The Salar de Maricunga is located 9 km to the northeast of Maricunga, and the Parque Nacional Nevado de Tres Cruces is located approximately 2.3 km from the south limits of the Maricunga concessions.

Maricunga is accessed from the center of Copiapó by a combination of paved highway, 2 lane asphalted road to approximately the La Coipa Mine, and then by variably maintained and unmaintained single track dirt roads. Access to the property by pickup (standard or 4-wheel drive) takes approximately three hours (155 km) from the center of Copiapó. Directions to the property are as follows: from Copiapó, travel southeast approximately 10 km out of the center of town towards the ENAMI Paipote smelter, and then turning north on the Inca de Oro road for 15 km and then turning off NE along the salt-paved road to Paso de San Francisco for 104 km, and to the turn-off for La Coipa Mine. At approximately 800 m SE of the La Coipa Mine turn-off, swing right to the SW and follow the dirt road which follows the Quebrada (drainage) Pelada gulch for 25km to reach the project site (Fig. 4.1). Maricunga is located 117 straight-line km from Copiapó.

The Maricunga mineralization/deposits are contained within concessions Cerro 7 and 8, Mary 8 1/20, Cerro Maricunga 13 1/10, 14 1/10, 20 1/20 and 21 1/20 as outlined in Figure 4. The actual area of the property, including the recently acquired Santa Teresa property totals 15,840 hectares (Figure 4.3). As a result of overlapping concessions, the over-all concession areas total 28,310 hectares (as of Aug. 2011). The principal deposits are protected by mining concessions (3,110 hectares) with the balance of the property comprising exploration concessions which are in the process of being converted to mining concessions. Table 4.1 lists the mining concessions and Table 4.2 provides lists the pedimentos and exploration concessions (and includes the Mining Concessions) which are in the process of being converted to mining concessions and which make up the Maricunga property.

Figure 4.1 – Detailed Location Map of the Cerro Maricunga Gold Project

Drafted by SBX

Figure 4.2 – Cerro Maricunga Concession Map

Drafted by SBX

Table 4.l – Maricunga Mining Concessions

Mining Concessions CONCESION HECTARES CERRO MARICUNGA 1 1/30 170 CERRO MARICUNGA 2 1/30 240 CERRO MARICUNGA 3 1/30 200 CERRO MARICUNGA 13 1/30 100 CERRO MARICUNGA 14 1/30 100 CERRO MARICUNGA 20 1/30 200 CERRO MARICUNGA 21 1/30 200 MARY 9 1/10 100 MARY 10 1/30 300 MARY 4 1/30 300 MARY 5 1/20 200 MARY 6 1/30 300 MARY 7 1/20 200 MARY 8 1/30 300 MARY SEGUNDA 2 1/10 100 MARY SEGUNDA 3 1/10 100 TOTAL MINING CONCESSIONS 3110

Table 4.2 – Cerro Maricunga Concessions Concession Hectares Concession Hectares TERNERO A 300 TERNERO SEGUNDA C 300 TERNERO B 300 TERNERO SEGUNDA D 300 TERNERO C 300 TERNERO SEGUNDA E 300 TERNERO D 300 CERRO NORTE 1 200 TERNERO E 300 CERRO NORTE 2 300 ELIONORA 1 300 CERRO NORTE 3 200 ELIONORA 2 200 CERRO SEGUNDA 1 300 ELIONORA 3 200 CERRO SEGUNDA 3 300 ELIONORA 4 200 CERRO SEGUNDA 4 300 ELIONORA 5 300 CERRO SEGUNDA 5 300 ELIONORA 6 300 CERRO SEGUNDA 6 300 ELIONORA 7 300 CERRO SEGUNDA 23 200 ELIONORA 8 300 CERRO SEGUNDA 24 200 ELIONORA 9 300 CERRO SEGUNDA 25 300 ELIONORA 10 300 CERRO SEGUNDA 26 300 ELIONORA 11 300 CERRO NORTE 4 200 ELIONORA 12 300 CERRO SEGUNDA 2 300 ELIONORA 13 300 MONICA 1 200 ELIONORA 14 300 MONICA 2 200 ELIONORA 15 300 MONICA 3 300 ELIONORA 16 300 MONICA 4 200 ELIONORA 17 300 MONICA 5 200 ELIONORA 18 300 MONICA 6 200 CERRO MA RICUNGA 23 200 MONICA 7 100 CERRO MA RICUNGA 24 200 MONICA 8 200 CERRO MA RICUNGA 25 300 MONICA 9 300 CERRO MA RICUNGA 26 300 MONICA 10 300 MA RY SEGUNDA 1 300 MONICA 11 300 MA RY SEGUNDA 2 300 CERRO 7 200 MA RY SEGUNDA 3 200 CERRO 8 200 MA RY SEGUNDA 4 200 CERRO 9 200 MA RY SEGUNDA 5 300 CERRO NORTE 6 200 MA RY SEGUNDA 6 300 MA RY TERCERA 1 300 MA RY SEGUNDA 7 300 MA RY TERCERA 2 300 MA RY SEGUNDA 8 300 MA RY TERCERA 3 300 MA RY SEGUNDA 9 300 MA RY TERCERA 4 200 MA RY SEGUNDA 10 300 MA RY TERCERA 5 100 MARY 11 300 MANTOGRANDE A 200 MARY 12 300 SANTA TERESA A 200 CERRO 1 300 CERRO MA RICUNGA 1 1/30 170 CERRO 2 300 CERRO MA RICUNGA 2 1/30 240 CERRO 3 300 CERRO MA RICUNGA 3 1/30 200 CERRO 4 300 CERRO MA RICUNGA 13 1/30 100 CERRO 5 300 CERRO MA RICUNGA 14 1/30 100 CERRO 6 300 CERRO MA RICUNGA 20 1/30 200 ELIONORA SEGUNDA 4 200 CERRO MA RICUNGA 21 1/30 200 ELIONORA SEGUNDA 6 300 MA RY 9 1/10 100 ELIONORA SEGUNDA 8 300 MA RY 10 1/30 300 ELIONORA SEGUNDA 10 300 MARY 4 1/30 300 ELIONORA SEGUNDA 12 300 MARY 5 1/20 200 ELIONORA SEGUNDA 14 300 MARY 6 1/30 300 ELIONORA SEGUNDA 16 300 MARY 7 1/20 200 ELIONORA SEGUNDA 18 300 MARY 8 1/30 300 TERNERO SEGUNDA A 300 MA RY SEGUNDA 2 1/10 100 TERNERO SEGUNDA B 300 MA RY SEGUNDA 3 1/10 100 Prepared by SBX

The author has reviewed appropriate documents (Ortúzar, Sept., 2011) with regard to the legal status of the Maricunga concessions which confirm that the concessions are in good standing until April, 2012 by which time the appropriate property payments must be made for the following period. Per data provided by Atacama, the total cost to maintain the Maricunga concessions, as they are currently constituted, for the period 2011-2012 is on the order of $130,000 based on the September, 2011 UTM and the average US dollar exchange rate for September, 2011. The estimated cost to maintain the Maricunga Project concessions for the period 2012-2013 is estimated to be on the same order as for 2011. This estimated amount may be higher, or lower, depending on

the inflation rate in Chile and the US dollar exchange rate at the time when the actual property payments are made.

Atacama filed for, and obtained, the appropriate permits which have allowed it to conduct two phases of exploration at Maricunga to date. Atacama controls the surface rights at Maricunga, and has prepared access to the Project. Atacama filed an Environmental Impact Declaration with CONEMA which will allow it to conduct the proposed Phase III exploration (predominantly drilling) at Maricunga.

Arcadis Chile prepared and filed the Environmental Impact Statement on behalf of Atacama. The conclusions reached by Arcadis are as summarized following:

 The Cerro Maricunga Project is not located near populations protected by special laws. No indigenous communities were identified within or proximal to the project area and which could be affected by the project.  The project doesn’t affect any officially protected area. The nearest protected area is the National Park “Nevado Tres Cruces”, located 2.3km in a straight line from the SE side of the project area.  The project doesn’t affect any protected wetlands or glaciers.  The project area has neither touristic nor scenic value which could be affected. The project area doesn’t contain Natural Monuments, Natural Sanctuaries or Historical Monuments.  Part of the project is located inside a semi-protected (buffer zone) Priority Site for biodiversity conservation (“Sitio Prioritario Regional Nevado Tres Cruces”). Nevertheless, the exploration activities will be located in areas which do not contain flora, vegetation, fauna, archeology or biodiversity which would create a priority site.

The author is not aware of any significant factors and risks, including any environmental liabilities, that may affect access, title, or the right or ability to perform work at Maricunga.

5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

The Maricunga Property is located approximately 40 km west of the Argentine border in the high Andes and at elevations of between 3,800 and 5,000 m asl. The principal topographic features are the result of the combination of horst and graben block tectonics in the Cordillera Occidental and the Cenozoic to Recent volcanism that has produced the various stratovolcanoes and dome complexes which host the alteration/mineralization that has been identified to date.

The Maricunga project is easily accessed by vehicle from Copiapó as described in Section 4.

The nearest major city to Maricunga is Copiapó, some 170 kilometers by road to the west. Copiapó, which has an approximate population of 150,000 people, lies along the Pan American Highway (Ruta 5 Norte) approximately 700 road kilometers north of Santiago, the capital of Chile. Copiapó has daily air service from Santiago and other Chilean cities. The project is located in Region III of northern Chile in the Province of Copiapó and political subdivision of Comuna Tierra Amarilla. Figure 4.2 is a general location and access map for the Volcan Property with respect to Copiapó. Experienced mine and plant personnel should be easily sourced from Copiapó, or elsewhere in Chile where a generally well trained and experienced workforce exists. Furthermore, Copiapó is a well-established support and logistics center for mining activities in the region.

Precipitation consists largely of snow during the South American winter months of June through August, with sporadic, but intense, rain storms of short duration occurring during the summer months (January to May). Precipitation in the Andes averages 200 mm to 300 mm/yr at an elevation of 4,000 m, while evaporation from surface water and soils varies between 1,500 to 2,000 mm/yr (Bartlett, et. al., 2004) resulting in the extremely arid conditions observed in the various areas. Local wildlife is sparse although vicuña may occasionally be encountered. The typical exploration field season at these elevations is from approximately October through May, or a duration of 7-8 months. However, should a mine be put into production, the property could be operated year round.

Because of the high altitudes, extremely strong winds frequently can develop in the afternoons and evenings. White-outs, termed the “Bolivian Winter”, which can create hazardous conditions, may occur during the summer months. The average annual temperatures are on the order of 11o C and ranges between -30o C at night in the winter months to 20o C during the summer months.

Atacama controls the surface rights at and about Maricunga and there is more than adequate operating room for a mining operation. Should a minable deposit be identified at Maricunga (and for which there are no assurances) Atacama would anticipate transporting the ore to the proposed leach sites by truck or conveyor.

Apart from minor secondary roads, there are virtually no infrastructure nor inhabitants in close proximity to the Maricunga area. Personnel will have to be housed in camps, and all food supplies including potable water, etc., must be brought in from Copiapó. Experienced mine and plant personnel are readily available in the region, especially in Copiapó.

Electric power is not available at site. Grid power is available to the La Coipa and nearby Cancan mines. If power can be source from these locations, then it will have to be brought in via high tension power lines from outside Copiapó at the turnoff on Ruta 31.

Atacama purchased and trucked water from Copiapó for its Phase I and II drilling campaign and will likely do the same for the upcoming Phase III program. Atacama has made application for water concessions and anticipates conducting exploration for water during the 2011-2012 field season.

6.0 HISTORY

Very preliminary exploration conducted in the early 1980’s identified a “possible high level, high sulfidation system” in the Ojo de Maricunga stratovolcano, with silica (opaline)-clay altered pyritic breccias, tuffs and quartz-feldspar porphyries being described. The author is unaware of any further work having been conducted in this area until SBX acquired the ground in 2007 and initiated exploration (preliminary rock chip sampling and mapping). Atacama acquired the Maricunga Project from SBX in October, 2008 (refer to Section 4).

In January and February, 2008 Minera Newcrest Chile Ltda (“MNCL”), the then Chilean subsidiary of Newcrest Mining Inc., conducted a preliminary evaluation of the property during which time MNCL took 325 samples (the author was general manager for Newcrest in Chile at that time) which confirmed the presence of elevated gold mineralization along a NW-SE trending zone. Newcrest elected not to continue exploration at Maricunga as a result of a change in focus from gold to copper exploration.

In 2008, GFC entered into an exploration/joint venture/option agreement with SBX and during which time they conducted trenching, mapping and channel sampling and performed an Induced Potential/Resistivity and Magnetic Survey during the 2008-2009 field season, as described in Section 9. The work performed by GFC confirmed that Maricunga was a potential gold target, and that the property warranted additional exploration including additional mapping, trenching/sampling and drilling.

No historical mineral resource or mineral reserve estimates have been previously made, nor has there been any production from the property.

7.0 GEOLOGICAL SETTING AND MINERALIZATION

Regional and Local Geology: The Easdon, Aug. 20, 2010 Technical Report on the Cerro Maricunga Gold Project describes the Local Geology and Property Geology at Maricunga as it was recognized at that time. Subsequent mapping by A. Dietrich and A. Hodgkin (and as described below) amplified and modified the geology as previously described.

Maricunga is located within the partially eroded Ojos de Maricunga stratovolcano which is composed of extensively developed mid-Miocene (15-17 Ma) pyroclastic volcanics

with a central dacitic-andesitic intrusive core breccia complex. The stratovolcano overlies slightly older Lower-Mid Miocene pumaceous rhyodacitic pyroclastic tuffs. Subsidiary porphyritic dacitic flow domes are developed along north-northwest trending faults which are flanked by volcanic breccias, pyroclastic flows, lapilli and crystal tuffs and dacitic-andesite flows, and very locally by tuffaceous arenites and volcaniclastic conglomerates. The Tertiary volcanic sequence is developed unconformably on the volcanoclastic sediments and conglomerates (with coarse rhyolitic, andesitic and andesitic-basaltic clasts) of the Upper Triassic-Lower Jurassic El Mono Fm. which formation outcrops towards the northwest (and towards the La Coipa Mine).

7.1 PROPERTY GEOLOGY

The geology mapping of the Cerro Maricunga property was completed and updated by consulting geologist A. Dietrich (Dietrich, 2010 and 2011). The following description is largely taken from Dietrich´s work which refers to the Cornejo et al, 1998 and Iriarte et al, 1995 published regional maps (Sernageomin), as well as that mapping performed by the SBX (Cepeda 2008) and GFC (2009).

The Cerro Maricunga volcanic center (also known as Ojo de Maricunga volcano), which hosts the Cerro Maricunga Project, is underlain by folded Mesozoic sedimentary strata which are exposed in to the north, northwest and southwest of the district (refer to Figures 7.1 to 7.4). Within the Maricunga property the Mesozoic “basement” rocks comprise (from oldest to youngest):

 A siliciclastic sequence, mapped as Estratos del Mono Fm. which is equivalent to the La Ternera Fm. (Triassic – Lower Jurassic). At Cerro Maricunga it comprises coarse arkosic sandstones intercalated with conglomerates, which are overlain by a facies of coarse arkosic sandstones intercalated with shaly siltstones.

 A Carbonate Sequence, which can be correlated with the Jurassic Lautaro Fm. (Iriarte et al) which consists of interbedded fossil-rich limestones intercalated with calcarenites, and which lies (?) on top of the siliciclastic sequence.

 Two andesitic sequences overlie the Carbonate Sequence: an older andesite sequence, consisting of andesitic tuffs which is intercalated with minor andesitic lava flows. This unit is overlain by another unit of prominent andesite lava flows (Carneros Andesite). Dietrich (2011) correlates both units with the Quebrada Paipote and Las Pircas Fms (Late Cretaceous to Early Tertiary). Cornejo et al mapped these units as the intermediate level of Estratos de Cerro Los Carneros Fm., and obtained an age of 67 ± 2 Ma, in the Portezuelo Codocedo area, which is located to the north of Cerro Maricunga. The Mesozoic sedimentary strata are folded along a NNE striking and 25-30°NNE plunging fold axis.

The Mesozoic units are intruded by plugs, dikes and possibly sills of monzodioritic to gabbroic composition, and by ocoite dikes. They are described by Dietrich as being holocristalline rocks, consisting of feldspars, pyroxene, minor hornblende, biotite and quartz. These units are unaltered and apparently are not related to mineralization. However, an andesitic dike on the SW side of the district is accompanied by a narrow halo of quartz veinlets which is weakly gold anomalous. A stock of andesitic porphyry (or diorite) intrudes along the inferred anticline axis into the Mesozoic strata in the Santa Teresa South area, and displays mineralization within the hornfels and calc-silicate contact-metamorphic halo.

The Ojo de Maricunga volcanic center is surrounded by a subhorizontal blanket of unaltered, non- to partially welded rhyodacitic ignimbrite, which has been named the “Maricunga Ignimbrite” by Cornejo and Iriarte. They describe this unit as a pumiceous pyroclastic flow deposit, which is white to pink in color, and is deposited in 5 m to 15 m thick flow units which is covered by gravel deposits (Gravas de Atacama unit) and pyroclastic deposits from the Ojo de Maricunga volcano and the unconformably overlying the Mesozoic units.

The Maricunga Ignimbrite is composed of coarse lapilli rhyodacitic tuffs, with abundant pumice and a vitreous pumiceous matrix with accidental and crystal fragments of biotite and hornblende. The Maricunga Ignimbrite has been dated (Cornejo et al; Iriarte et al) at 13.7 ± 2.6 Ma to 17.9 ± 1.4 Ma.

The following units are described by Dietrich (Dietrich, 2011) as forming part of the Ojo de Maricunga volcanic edifice, which hosts at its center the recognized Cerro Maricunga gold deposit:

 “Andesitic Cover sequence: the borders of the Cerro Maricunga mineralized complex are covered by unaltered andesitic lava flows and thick wedges of epiclastic block flows of andesite material. The andesitic lava flows are medium - to coarse grained hornblende-feldspar porphyries. The epiclastic block flows are composed of blocks of up to car-size andesitic lava flow material which are set into a (reworked) andesitic matrix. The block flows show bedding at larger scale and have been observed to occur as fault-bound sequences which are up to 400m thick bonding the mineralized complex.

 Dacite tuff sequence: this sequence is exposed beyond the limits of the Porphyry and Breccia Complex. The dacite tuff sequence consists mainly of litho-and crystal tuffs and forms the host for the mineralized Porphyry and Breccia complex. A broad propyllitic halo is developed about this complex.

 Porphyry and Breccia Complex: it consists of several porphyry phases as well as a variety of breccias which have been transected by andesitic dikes. The complex crops out along a NW-striking corridor 2,800m in (strike) length and hosts the gold mineralization identified at Cerro Maricunga Project. The mineralized complex appears to be controlled, and partially bound, by NW striking faults. The width of the complex is variable between three principal fault blocks which are in turn offset by 17

NE strike faults, the northern block has a width of approximately 400 m, the central block has a width of approximately 600 m, and, the southern block has a width of approximately 700 m.”

“The basement rocks in the Maricunga Mineral Belt comprise a series of volcanic- plutonic-sedimentary arcs of Mesozoic-Cenozoic age which are associated with the seduction of the Pacific Plate below the South American Plate. A large volcanic caldera complex developed over basement rocks of Paleozoic-Triassic and Mesozoic-Early Tertiary age and beginning with the development of large andesitic (dacitic) stratovolcanoes starting in the Oligocene-Miocene (23-14 Ma – based on K/Ar dates) and which developed principally on the western side of Lake Maricunga (Bartlett, 2004, Geoexploraciones, 2003). “The Miocene volcanics and contained alteration and mineralization are subdivided into two partly overlapping sub-belts – the western early Miocene (24-20 Ma) and the eastern middle Miocene (14-13 Ma) sub-belts. High angle reverse faulting occurred between the two epochs in response to regional compression induced by subduction zone flattening. A northwest alignment is also prominent in the belt as reflected by the strike of the several components of the alteration and mineralized zones.”

“Several hydrothermal systems developed during this time resulted in the formation of the currently known deposits including Marte, La Pepa and La Coipa. The hydrothermal activity lasted through to 12 Ma when it is considered that Marte was being formed. Hydrothermal and solfataric activity resulted in the generation of sulfur deposits above large numbers of argillized and silicified zones. The gold-(+/- copper) porphyry-type mineralization is considered to be related to earlier (?) deeper seated (telescoped) K- silicate alteration which is preserved at the Maricunga Mine and the Aldebaran (Cerro Casale) deposit and which is most typically overprinted and obliterated by sericite-clay- chlorite assemblages of intermediate argillic type. Vila, et al (1991) indicate that several of the porphyry-type stockworks are overlain by “pyrite and alunite rich advanced argillic alteration carrying barite, native sulfur, enargite and at La Pepa by high sulfidation, high grade epithermal vein-type gold mineralization”. The quartz stockworks and advanced argillic caps are telescoped at Marte, La Pepa, etc., and are separated by a chloritized zone transected by a swarm of gold-poor polymetallic veins with quartz-alunite selvedges at Aldebaran.”

Figure 7.1 depicts the regional geology and relates Cerro Maricunga to various other Gold-Silver (Cu) deposits in the Maricunga Belt.

Figure 7.1 – Regional Geology and Deposits of the Maricunga Belt

Prepared by SBX

The drilling that has been performed to date has defined 3 essentially contiguous mineralized zones for which mineral resources have been estimated. The mineralization has been traced by drilling over a strike interval 2,500 m, with widths of 100 – 500 m (averaging approximately 200 m) and to an estimated vertical depth of 550 m and remaining open to depth. Figure 7.2 depicts the geology of the Maricunga concessions as mapped by A. Dietrich (2011). Figure 7.4 depicts the detailed geology over the principal mineralized portion of the SE section of the Maricunga concessions. Figure 7.5 is a Schematic Cross Section Looking north of the Cerro Maricunga gold mineralization host rocks and structures as interpreted by P. Cabrera and S. Diaz.

Figure 7.2 – Maricunga Property Geological Map

Drafted by A. Dietrich

Figure 3 - Legend for Figure 7.2

Figure 7.4 - Cerro Maricunga – Geology of the Mineralized Zone

Drafted by A. Dietrich

Figure 7.5 – Schematic Cross Section Looking NS - Cerro Maricunga Gold Mineralization Host Rocks and Structures

Prepared by P. Cabrera & S. Diaz

The author has extracted selected sections of the May, 2011 Report prepared by A. Dietrich which is based on the detailed mapping that he performed at Cerro Maricunga.

Activities

The author (Dietrich) took over the task of geological reconnaissance mapping at 1:10,000 scale, covering the central Ojo de Maricunga prospect area, and subsequently expanding outwards in order to cover the wider geological environment.

 Covered area: At present reconnaissance mapping covers an area of 6 x 5.4km (32.4km2, 3240has). The covered area coincides with the extent of the recently acquired high resolution aerial photograph.

 Trench mapping: A total of some 23 line kilometers of trenches were studied and recorded with more detail.

 Recorded observation points: Field observations were recorded with 1346 waypoints, including 250 observation points recorded already during a one week visit in April 2010.

 Structural data base: Structural measurements were recorded in a structural data base. At present the structural data base comprises 481 data sets, including 61 fault measurements, 294 veinlet (chiefly BBV) measurements, 68 dike measurements, 24 bedding measurements, and 25 measured contacts of breccias and porphyry phases.

 Geochemistry samples: A total of 63 samples has been collected for orientation geochemistry. Analyses were requested for Au-Cu-Mo at Geoanalitica; and MS- ME41 multi-element geochemistry at ALS CHEMEX. At present are pending 7 assay results for Au, 24 assay results for Cu-Mo, and 63 assay results for multi- element geochemistry

 Petrographic and PIMA samples: A total of 40 samples have been collected for eventual petrographic studies and PIMA analyzes of alteration mineral assemblages.

Mapping Results: The Ojo de Maricunga prospect exposes a Porphyry and Breccia Complex (PBxC) which emplaced into, and is surrounded by, a monotonous sequence of block, lapilli and crystal tuffs. Unaltered andesitic lava flows and epiclastic andesitic block flows cover the wider surroundings. The entire complex appears to rest on a pyroclastic sequence which is exposed to the SW of Ojo de Maricunga and mostly outside the property.

The currently presented mapping product chiefly aimed to characterize the extent of the partially mineralized Porphyry and Breccia Complex (PBxC) by contouring the limits of the surrounding country rocks. This mapping exercise started off with a simple classification of rock units as defined based on drill core observations with Andrew Hodgkin. Porphyry phases were grouped as daciandesitic porphyries (DAP), and breccias were simply distinguished by the presence or absence of juvenile clasts. Additional easily recognized features are mingling textures of different porphyry phases which were distinguished from homogeneous DAPs. This mapping scheme turned out to work out well in the field, and allows correlation of features between nearby trenches in many places.

Porphyry and Breccia Complex (PBxC)

The Porphyry and Breccia Complex (PBxC) consists of several porphyry phases and a variety of breccias which are cut by dikes.

Outcrops of the Porphyry and Breccia Complex (PBxC) can be found in trenches along a NW- striking corridor (N120E) of some 2,700m strike length. The mineralized complex appears to be controlled and partially bound by faults of NW-strike. The width of the complex varies between three main fault blocks which are separated by faults of NE-strike: In the northern block the width is 400m, in the central block the width is some 600m, and in the southern block the width is some 700m.

Porphyries: Rocks which do not show a fragmental texture are here classified as “porphyries”. They are homogeneous and either holocristalline or porphyritic with phenocrysts sitting in a fine-grained matrix.

Daciandesitic porphyry (DAP): The main porphyry phase distinguished during the present mapping exercise is a daciandesitic porphyry (DAP). They consist of phenocrysts of feldspars (20-30%) and hornblende (10-15%) with variable and minor amounts of occasionally observed biotite (up to 5-10%) and quartz (up to 5%). Their composition is defined as daciandesitic what is spanning a range of compositions which could be specified in detail by mapping exercises at smaller scale in conjunction with petrographic studies. The DAP porphyries form part of the Porphyry and Breccia Complex (PBxC) and often host mineralization.

No systematic distinction has been made between DAPs and andesite dikes and plugs. DAPs are generally more leucocratic in appearance, and occasionally contain minor biotite and quartz.

Andesitic dikes and plugs: Andesitic dikes and occasional plugs are a common feature within and also outside the main porphyry and breccia complex. They are a subclass of the DAPs (see above). There were no systematic criteria to distinguish DAPs from andesite dikes and plugs other than their apparent plug- or dike-like occurrence together with the coloring of the matrix: Rocks with dark grey or greenish, fine-grained to dense matrix were preferentially mapped as andesite dikes.

Apparently there are several andesite phases exposed which distinguish by sizes and amount of feldspar and hornblende (occasionally also pyroxene?) phenocrysts. A systematic distinction has not been made during this reconnaissance study. A systematic classification of the different andesites might be a worthwhile exercise for a more detailed study since some andesites appear to be barren whereas others are apparently associated with BBV mineralization.

Generally, the andesite dikes and plugs are observed to cross-cut the suite of breccias and most porphyritic sub-intrusive rocks, suggesting a fairly late origin. However, it is also occasionally observed that the dike contacts are mineralized by BBVs, and that BBVs tend to be more frequent in the vicinity of dikes and

plugs. A good example is around sample 205046 where numerous BBVs are located adjacent to a small andesite plug of 30m diameter.

Daciandesitic porphyry with coarse hornblende: The daciandesite porphyry with coarse hornblende is porphyritic with medium-grained phenocrysts of feldspars and characterized by the presence of coarse-grained phenocrysts of hornblende with crystal sizes of 0.5-1.5cm. The phenocrysts are set into a fine- grained crème- colored matrix.

This porphyry phase can be found as plug- or dike-like occurrences within the Porphyry and Breccia Complex (PBxC) but appears not to be mineralized by BBVs or magnetite-chlorite breccias and veinlets. It is suggested that this porphyry phase is late magmatic feature, largely post-dating mineralization.

Quartz-eye porphyry (QEP): The quartz-eye porphyry is characterized by the presence of corroded, medium to coarse- grained quartz eyes with diameters of up to 10mm. The quartz eyes are often “smoky” and stained along micro- fractures by Fe-oxides. The quartz-eye porphyry consists of phenocrysts of medium-grained feldspars (25%), fine- to medium-grained hornblende>biotite (10-15%), and coarse, corroded quartz crystals (10%), all set into a fine-grained groundmass.

A petrographic sample (M-23), taken from an area here mapped as quartz-eye porphyry, was characterized by E. Tidy (25/05/2009) as largely fresh with minor chlorite-hematite after mafics (hornblende-biotite). However, the glass-rich matrix is observed in the field to be often devitrified to angelically altered.

The absence of significant hydrothermal overprint coincides with the apparent lack of mineralization. It is suggested that the QEP is a late- to post-mineral sub volcanic phase.

Rhyodacitic porphyry (QBF): The rhyodacitic porphyry is holocristalline and consists of medium-grained crystals of feldspars with biotite and quartz. It occurs as narrow dikes in the surroundings of the quartz-eye porphyry.

Rocks with mingling features: Special attention has been paid to the presence, distribution and distinction of mingled rocks. It is the presence of rocks with juvenile clasts and mingling textures which clearly demonstrate the outline of the emplaced porphyry and breccia complex, whereas other porphyritic rocks and breccias without juvenile fragments might as well represent country rock. The distribution of rocks with juvenile clasts or mingling textures gives a good idea of the extent of the porphyry and breccia complex.

The group of rocks with mingling textures comprises a wide range between two end-members:

1) mingled porphyries and 2) phreatomagmatic breccias with juvenile clasts. In between these two end-members one can observe a variety of rocks which show both mingling textures of porphyry phases and presence of juvenile clasts which are here grouped as Mingled Porphyry and Breccia (MPBx).

It is interesting to note that there appears to be a close spatial association between rocks with mingling textures (and here especially of the mingled porphyry unit (MP) and the mingled porphyry and breccia unit (MPBx) and the presence of mineralization. BBVs tend to occur in the surroundings of mingled rocks whereas magnetite-chlorite mineralization is often hosted by the mingled porphyry and breccia unit.

Mingled porphyry and breccias are exposed along trenches as narrow corridors which at least in the SE portion of the complex can be correlated fairly well between trenches. This suggests a dike-like appearance of mingled porphyry and breccia phases with strong structural controls by chiefly NW- striking structures.

In the central part of the Porphyry and Breccia Complex (PBxC), the correlation of mingled porphyry and breccia phases between trenches is more difficult. This might indicate that mingled porphyry and breccia phases here are of more irregular plug-like shapes and less controlled by prevailing NW-striking structures.

Mingled porphyry (MP): The mingled porphyry is here defined as a non- fragmental rock which shows mixing between a pale leucocratic and a dark- grey, melanocratic porphyritic magma phases. The melanocratic magma phase is similar in composition to some andesite dikes and plugs, and also present as droplet-like, juvenile clasts in the phreatomagmatic breccias. The mingled porphyries have been observed as narrow corridors along trenches, and a structurally controlled, dike-like nature is suggested.

Mingled porphyry and breccia (MPBx): The mingled porphyry and breccia unit comprises both mingling textures of two magmas and the presence of juvenile clasts at variable proportions. This unit is considered to represent a transition between the two end-members mingled porphyry and breccia with juvenile clasts.

Outcrops of this unit have frequently been observed as narrow corridors along trenches, which occasionally can be correlated between trenches, especially in the SE portion of the porphyry and breccia complex. A dike-like nature is suggested.

Phreatomagmatic breccia with juvenile fragments (BxJ): This mapping unit is characterized by the presence of juvenile clasts. As juvenile clasts one here considers clasts with irregular shapes, often displaying concave

embayments towards the outside, which are unlikely to be a result of mechanical transport and abrasion.

The clasts are generally observed to be of melanocratic, andesitic composition, which can make up to 30% of the rock. However, it is important to stress that only a minor fraction of these clasts display irregular shapes which qualify as juvenile clasts. The mapping criteria were to identify at least three irregularly shaped clasts within few meters range. Other clasts of same composition were then also considered to be juvenile even though they have spherical shapes. The matrix is generally fine-grained and of pale colors what together with the dark grey andesitic clasts gives the rock a salt-and-pepper coloring.

The presence of juvenile fragments classifies this mapping unit as phreatomagmatic breccia. The breccias with juvenile fragments (BxJ) are observed to be a commonplace feature within the Porphyry and Breccia Complex (PBxC) and has a wider distribution compared with the mingled porphyries and mingled porphyry and breccia units. The phreatomagmatic breccias are interpreted to occur as irregular bodies but are also observed to occur as dikes.

Breccias without juvenile fragments (BxNJ): Breccias without identified juvenile fragments show a wide range of sizes and amounts of clasts, which have not been investigated in more detail.

It is important to note that these breccias overlap with the characteristics of the tuffaceous country rock sequence: Both consist of clasts of porphyritic to tuffaceous rocks with sizes of up lapilli and block size. In consequence some of the non-juvenile breccias within the Porphyry and Breccia Complex (PBxC) could represent remnants of the intruded country rock.

Unconsolidated, sandy Bx: A minor feature and subclass of the BxNJs is an unconsolidated, sandy breccia with fragments lacking coherence. The rock can be decomposed by the tip of a hammer or even a finger.

What at first glance might also represent a scree deposit or a fault gouge has also been found to be in places mineralized by wavy BBVs (sample 205046, 990ppb Au). It might represent a non-cemented phreatic breccia or that the cementing mineral has been weathered away near surface.

Breccia with BBV clasts: Breccias which carry clasts containing BBVs were rarely observed. The breccias are polymict with 30% of the clasts being of up to 20cm set into a serial, finer-grained matrix. Clasts comprise sub angular DAP, subrounded (juvenile?) andesite, and clasts of breccias cut by BBVs. Their dike- like contacts are occasionally also mineralized by BBVs, suggesting multiple generations of BBV mineralization and brecciation.

Tuffisite dikes: Tuffisite dikes are observed within the mineralized complex but also if not preferentially in the surroundings of the Porphyry and Breccia Complex, cross-cutting members of the tuffaceous wall rock sequence.

Pebble dikes / fault gouge: Dike-like occurrences of unconsolidated breccias with subrounded to sub angular clasts of serial clast-size distribution set in a finer-grained serial matrix are observed frequently with widths from 10s of centimeters to several meters.

These might represent pebble dikes, however, their frequently observed proximity to fault planes suggests that their origin is as fault gouge. The correlation of “pebble dikes” in conjunction with observed faults resulted in a systematic structural pattern.

COUNTRY ROCK

Tuff sequence (country rock): The surroundings of the Porphyry and Breccia Complex (PBxC) are characterized by a monotonous sequence of tuffs. They are best observed in more distal portions where alteration overprint is weak.

Facies with coarse fragment sizes cannot be distinguished properly in hand specimen and single outcrop from rocks of the porphyry and breccia complex. Some of the formerly conducted petrographic studies defined porphyry lithologies in places which are here interpreted as members of the tuffaceous sequence. It might be that the petrographic studies were conducted on clasts of the tuffaceous sequence.

The tuff sequence comprises a wide range of fragment sizes from block tuffs over lapilli tuffs to crystal tuffs. Most common are block to lapilli tuffs. Typically they are composed of 20-40% clasts of predominantly andesitic to dacitic porphyritic lithologies, and are set into a fine to medium-grained porphyritic matrix. The composition of the tuffaceous sequence is dacitic to rhyodacitic as estimated by the variable amount of quartz eyes which is in the range of 0-10%.

Occasionally, especially in the finer-grained facies, the tuffaceous sequence shows stratification with bedding between horizons of different fragment sizes. The bedding is at low dip-angles (<25°) and strata appear to dip concentrically outward from an eroded point source located in the central Ojo de Maricunga area.

Andesitic cover sequence: The wider surroundings of the Ojo de Maricunga complex are covered by unaltered andesitic lava flows and thick wedges of epiclastic block flows of andesite material.

The andesitic lava flows are medium- to coarse grained hornblende-feldspar porphyritic. The epiclastic block flows are composed of blocks up to car-size of andesitic lava flows set into a (reworked) andesitic matrix. The block flows show bedding at larger scale and have been observed to occur fault-bound as up to 400m thick sequences in the surroundings of the Ojo de Maricunga area.

ALTERATION

The alteration at the Ojo de Maricunga prospect was defined by observations on hand specimen and outcrops, and has not been supported by PIMA or other studies to define the alteration mineralogy in more detail.

The prospect appears to show a zonation with weak Maricunga style alteration in proximal position, chiefly affecting the Porphyry and Breccia complex, with replacement of mafic phenocrysts by hydro-biotite to chlorite plus minor magnetite, and partial to complete replacement of plagioclase by illite/smectite to smectite aggregates.

This is surrounded by a halo of disseminated garnet-hedenbergite blastesis affecting the immediate country rock, impregnating surrounding tuffs, and resulting in a distinct greenish touch of the rock. The width of this halo is estimated to be several tens of meters.

Further outwards, alteration in the tuffaceous sequence is weak to moderate, intermediate argillic alteration (illite/smectite). Distal propyllitic alteration with dissemination of pyrite shows supergene argillic and locally supergene advanced argillic overprint with minor dissemination of fine-grained jarosite and possibly alunite.

Fumarolic alteration with precipitation of gypsum and minor alunite and jarosite is restricted to structures within the propyllitic zone, forming narrow, structurally controlled corridors of advanced argillic alteration. No steam heated alteration has been observed in the Ojo de Maricunga project area.

MINERALIZATION

The mineralization of the Ojo de Maricunga prospect comprises black banded veinlets (BBVs) and magnetite-chlorite breccias and veinlets which are largely confined to exposures of the Porphyry and Breccia Complex (PBxC). Only few BBV occurrences were found outside the PBxC to be hosted by the tuffaceous wall rock sequence and there always in close vicinity to the porphyry and breccia complex.

The mineralization, including BBVs and magnetite-chlorite breccias and veinlets, can be observed along trenches to occur chiefly in well defined,

discrete intervals. These intervals appear to be controlled by structures such as faults or dikes, and also might be controlled by unexposed lineaments.

The aerial extent of BBVs occurrences coincides well with the outline of occurrences of mingled porphyries (MP), and mingled porphyry and breccia (MPBx). In many places BBVs are observed to occur preferentially in the immediate surroundings of mingled porphyry (MP) and mingled porphyry and breccia (MPBx) dikes, forming halos of veinlet mineralization within a distance of some 30m. Some andesitic plugs and dikes appear to be surrounded within tens of meters range by BBV occurrences. There might be a spatial and perhaps genetic link between mineralization and certain andesite phases present as dikes or as component of mingled porphyry (MP) and MPBx.

The magnetite-chlorite breccias and veinlets are mostly observed to occur within the mingled porphyry and breccia unit, where they appear to be cross- cutting to intergrown with the breccia material. The aerial extent of magnetite- chlorite mineralization coincides roughly with the presence of mingled porphyry and breccia (MPBx).

Apparently, there are multiple generations of BBVs. For instance BBVs are observed within clasts of breccias which in turn are mineralized by BBVs. Cross-cutting relationships between BBVs in drill core suggest at least 4 generations of BBVs (Lohmeier, pers. comm.).

Two new occurrences of BBVs were identified during the presented study: 1) An area of BBV and magnetite-chlorite mineralization hosted by a daci-andesite porphyry located to the NE of the main Porphyry and Breccia Complex (PBxC) (samples 205020, 205021, 205023: 263-810ppb Au), and 2) BBV occurrences apparently hosted by tuffaceous wall rock in the NW part of the system (samples 205005: 3125ppb Au; 205006: 242ppb Au).

In distal settings of the system one can observe the presence of tuffisite dikes, gypsum veinlets, opaline silica and minor (tectonic?) breccias with Fe-oxide cementation. Geochemical samples returned no significant anomalies of such material (some assays are pending).

Disseminated pyrite is surrounding the complex in distal positions, and probably forms part of a propyllitic alteration halo. The pyrite near surface is oxidized to hematite and limonite resulting in a wide color anomaly of Fe-stained rocks and scree deposits.

STRUCTURE

The Ojo de Maricunga prospect is structurally characterized by the predominant set of NW-striking (N±120E) faults and dikes, and by a set of NE-striking cross faults (N±040E).

The outline of the mineralized Porphyry and Breccia Complex in many places appears to be bound by faults of both NW- and NE-strike. Both fault sets appear to have partially controlled mineralization and emplacement of porphyry and breccia phases, and thus would have already existed at times of PBxC formation and mineralization. The pattern also suggests that both fault set accommodated post-mineral block faulting. A horst-like exposure of the central Porphyry and Breccia Complex is interpreted which is stepwise downthrown perpendicular to NW-strike.

The NE-striking cross faults separate the exposure of the Porphyry and Breccia Complex into three main blocks of different widths of exposed PBxC, and variable presence of breccia phases and mineralization. Post-mineral block faulting along NE-striking faults is suggested, resulting in exposures of the mineralized Porphyry and Breccia Complex at different erosion levels.

Structural measurements were compiled into a structural data base which comprises 481 data sets, including 61 fault measurements, 294 veinlet (chiefly BBV) measurements, 68 dike measurements, 24 bedding measurements, and 25 measured contacts of breccias and porphyry phases.

The attitudes of veinlets (chiefly BBVs) show one maximum at 078o/85oSE and a second maximum around 158o/85oNE. Together they enclose an inter-plane angle of some 80°, and its acute bisector coincides with the predominant strike of NW-faults of N120oE (as taken from map).

The fault attitude data shows several poorly defined maxima of sub vertical planes in the range of N115o-168oE, and another weak maximum at 056o/89oSE. These maxima coincide roughly with the faults as inferred from geological observations in the field in supporting the existence of NW- and NE- striking faults.

The dike attitude data shows a maximum at 122o/87oNE which is parallel to the predominant fault strike of N120oE, as depicted from the geological map. The dikes show a girdle distribution from 122o/87oNE towards 083o/87oNE. Another minor set of data points indicates a dike orientation around 050o/88oSE which coincides with a minor set of fault data around 056o/89oSE.

As a preliminary structural model it is here suggested to have veinlet mineralization preferentially controlled by a conjugate shear pair of N±080oE and N±160oE. It´s acute bisector is parallel to the predominant orientation of NW-striking faults at N120oE. This would suggest a σ1 direction oriented at N120oE, making the N120oE faults tension fractures. Faults oriented at acute angles around N120oE might have accommodating strike-slip movements with faults striking >N120oE with sinistral strike-slip component and faults

slickensides were rarely observed with the exception of a fault 142o/67oNE with slickenside rakes of 25°NW, suggesting a sinistral strike-slip component. A σ1 direction of N120oE would also allow extensional block faulting perpendicular to N120oE as suggested partially for post-mineral block faulting.

CONCLUSIONS (Dietrich, 2011)

 The Ojo de Maricunga prospect exposes a Porphyry and Breccia Complex (PBxC) which emplaced into, and is surrounded by, a monotonous sequence of block, lapilli and crystal tuffs. Unaltered andesitic lava flows and epiclastic andesitic block flows cover the wider surroundings. The entire complex appears to rest on a pyroclastic sequence which is exposed to the SW of Ojo de Maricunga and mostly outside the property.

 The mineralization appears to be largely confined to exposures of the Porphyry ad Breccia Complex. This complex is composed of a variety of porphyry and breccia lithologies, and is mainly characterized by the presence of mingled porphyries and phreatomagmatic breccias with juvenile fragments.

 Mineralization consists of black banded veinlets (BBVs) and magnetite- chlorite breccias and veinlets. BBVs are often found in the immediate surroundings of mingled porphyry and breccia occurrences, perhaps forming halos with widths of some 30 m. Also some andesitic plugs and dikes appear to be surrounded within tens of meters range by BBV occurrences. Occurrences of magnetite-chlorite breccias and veinlets in turn were found frequently hosted by mingled porphyry and breccia phases.

 There appear to be multiple events of brecciation and BBV mineralization. Some breccia phases are observed to carry clasts containing BBVs. Their dike-like contacts in turn are also mineralized by BBVs. Cross-cutting relationships between BBVs in drill core suggest at least 4 generations of BBVs (Lohmeier, pers. comm.).

 No mineralization has been observed in the daciandesite porphyry (DAP) phases with presence of coarse hornblende phenocrysts and in the quartz- eye porphyry (QEP) which might post-date mineralization.

 Mingled porphyry and breccias appear as narrow corridors which at least in the SE portion of the complex can be correlated fairly well between trenches, suggesting a dike-like appearance of mingled porphyry and breccia phases. Also BBVs and magnetite-chlorite mineralization are often observed to occur in discrete well defined corridors. This suggests strong structural controls of emplacement and mineralization by faults of NW strike and to lesser extent also of NE strike.

 The outline of the mineralized complex in many places appears to be bound by faults of both NW- and NE-strike, suggesting post-mineral block faulting. Cross faults of NE-strike appear to separate the Porphyry and Breccia Complex in three blocks of different exposed widths and characteristics. This might point towards exposures at different erosion levels.

 The alteration pattern of the Ojo de Maricunga system is interpreted to consist of a proximal, weak Maricunga style alteration affecting the central Porphyry and Breccia Complex, which is flanked to the NE and SW by a metasomatic halo of disseminated green garnet and hedenbergite, impregnating surrounding tuffs and resulting in a distinct greenish touch of the rock. The width of this halo is estimated to be several tens of meters. This garnet-pyroxene halo gives way outwards to weak (intermediate) argillic alteration and propyllitic alteration. The latter is characterized by disseminated pyrite which in turn close to surface and along fractures underwent oxidation, resulting in a supergene argillic to supergene advanced argillic overprint with local presence of jarosite and minor alunite.

 As exploration guides might serve a series of features which appear to surround the mineralized complex: In most distal positions at distances of some 1000m one observes the onset of gypsum veinlets. Tuffisite dikes and dissemination of hedenbergite were observed at distances of up to 500m from the exposed and recognized mineralized complex. The dissemination of green garnets can be observed within distances of up to 300m.”

8.0 DEPOSIT TYPE

The authors consider that Cerro Maricunga has characteristics similar to other known deposits which occur within the Maricunga Gold-(Copper) Belt of Chile. The deposit type being explored for is a porphyry gold deposit developed in, and associated with, Miocene domal intrusives. These characteristics can include mineralization/alteration types which appear to be intimately associated with, or occur below, high level, high sulfidation epithermal mineralizing systems developed in variably eroded and collapsed Oligocene-Upper Miocene stratovolcanoes and within recurrent intrusive dacitic domes. Hydrothermal and phreatic breccias are frequently developed flanking and transecting (and below the steam heated zones) the domal intrusives and most commonly at fault intersections and/or zones of dilation.

9.0 EXPLORATION

Since 2008, the Maricunga deposit area has extensively mapped (refer to Section 7, Property Geology) and sampled (rock chip and trench) by SBX, GFC and by Atacama. As well, mapping of the entire Maricunga property was undertaken by geological consultant A. Dietrich at scales of 1:10,000 and 1:25,000 scale (for a total area of approximately 16,300 has (163 km2). The deposit area was mapped at a scale of 1:2,500 by geological A. Hodgkin. Petrographic and polished sections work was performed by P. Cornejo (2011) on 50 samples taken from the field sampling and from the drill core.

Atacama drilled 8 drill holes at Maricunga as described in Easdon, 2010. This work resulted in the recognition and definition of a gold (+100 ppb to + 3 ppb Au) mineralized zone at Maricunga which had dimensions of +2,500m by 300-500m with a general NW trend.

The work performed during the 2009-2010 and 2010-2011 field seasons (Phases I and II) is summarized as follows: a total of 2,142 m (5 RC – 1422 m; and 3 DD – 720 m) were drilled in 2009-2010; and, a total of 31,461 meters of RC and DD drilling in 82 inclined holes (60 RC – 24,580 m and 22 DD – 6,881 m). The bulk of the holes were drilled at N45oE and at an inclination of -60o. The area that has been drilled has approximate dimensions of 2.5 km NW-SE by 0.3-0.5 km NE-SW. The drilling was generally conducted on an approximate 50 m x 50 m grid in the Phoenix (Central) and more widely spaced to the Lynx (North) and Crux (South) zones.

Table 9.1 Cerro Maricunga – 2009-2010 Work Program Summary

Table 9.2 - Cerro Maricunga – 2010-2011 Work Program Summary

Samples Work Program Number Metres Assays taken Drill holes 82 31,460.75 16,944 Au, Cu Trenches & Road cuts 12 2,350 Au, Cu Surface samples (Chips) 147 n/a 147 Au, Cu Ground Magnetic Survey 0 n/a IP/Resistivity Survey 11 n/a n/a

A summary of the exploration work undertaken buy Atacama at Maricunga is presented in Tables 9.1 and 9.2. Atacama has systematically trenched and sampled the majority of the known mineralized zone a shown in Figure 9.1. The trench data, along with the geophysics that has been performed has been used to aid in spotting the drill holes.

Trenching has been performed by cutting roads (in part access roads for the drills) and by taking 5 meter continuous channel samples (with hammer and chisel) along the road walls where outcrop is exposed. It is the opinion of the authors that the trench samples are representative of the mineralization, alteration and rock types; however the assay results are not utilized in the resource calculations.

The Phase II campaign was conducted on the Cerro Maricunga Property from late September 2010 through to May 2011. A total of approximately 11,600 meters of new trenches and road cuts were constructed and chip-channel sampled at 5m continuous intervals. The trenches were chip-channel sampled at 5 m continuous intervals. A total of 2,350 samples were assayed for Au-Cu.

Figure 9.1 depicts the 5 m sample intervals as ranges of values per the color code. The best gold value (3.39 g/t Au) and the highest Cu value (495 ppm Cu) came from trench T-23. A 2,300 m long by up to 1,100m (maximum width) mineralized area is delineated by the 50 ppb Au envelope from Section 200 NW through Section 2500 NW. Irregular, NW-SE oriented +300 ppb Au anomalous zones are defined within the principal envelope representing the cores of the Phoenix, Lynx and Crux zones (Figure 9.2).

All existing roads were rehabilitated at the beginning of the Phase II field season. Three D-8 bulldozers (2,843 hours), one D-6 bulldozer (234 hours), two backhoes (1,435 hours) and one grader (714 hours) were hired from Rubén Cerda contractor from Copiapó, and another D-8 bulldozer was hired from Vecchiola Ltda (373 hours).

Phase II drilling comprised 6,881 meters of diamond drilling in 22 angled holes, and 60 angled reverse circulation drill holes for 24,580 meters. Phase II drilling totaled 31,461 meters. The drilling was performed by Terra Service Ltda. The down-the-hole surveying was initially done by Comprobe Ltda. (Holes N° 09 to 18) and subsequently by J. Bassi (holes 19 to 90).

The exploration work performed has established that the Maricunga property is underlain by an extensively eroded stratovolcano which has been subjected to multiple intrusive domal (andesite-tonalite) activity as well as the probable formation of a NW elongate core diatreme (or series of diatremes), and the emplacement of structurally controlled variably gold bearing grey and black banded silica veinlets and chlorite- magnetite-quartz veinlets. The domal intrusives and mineralization at Maricunga are emplaced predominantly within a northwesterly trending dilatant zone which is developed along the regional and through-going structural corridor which extends generally southerly through, and beyond, the Volcan and Maricunga Mine deposits and northerly, through and beyond, the La Coipa mine.

Figure 9.1 – Cerro Maricunga Trenching

Drafted by SBX

Figure 9.2 - Cerro Maricunga – Phoenix / Lynx / Crux Zones defined by the 50 and 300 ppb Au contours

During January 2011, geophysical consulting firm Argali Geofísica E.I.R.L. conducted an Induced Polarization (IP) survey at Cerro Maricunga (Jordan, 2011). The survey consisted of three N-S oriented lines totaling 11 line-km, which complements the previous 23 line-km IP and ground magnetic surveys (Refer to Figures 9.3 to 9.4) undertaken at the project area (Jordan, 2008 and 2009). The objective of the IP surveys was to map chargeability trends associated with gold mineralization and resistivity trends associated with lithology, structures and alteration.

The various IP surveys were completed using the same equipment with a pole-dipole array, at a dipole spacing of 100m. Dipole separations were n=1 to 6 (2008 survey), n=1 to 12 (2009 survey) and n=1 to 8 (2011 survey). A time-domain waveform with a frequency of 0.125 Hz was used. Argali used the following IP/Resistivity equipment: Receiver: GDD 3600, Transmitter (3.6 kWatt), and a Honda 6 kWatt Generator.

The data were inverted with a 2-D IP and resistivity inversion program called “DCIP2D (version 3.2)” from the University of British Columbia Geophysical Inversion Facility.

Results of the inversion are depicted as cross-sections of chargeability and resistivity versus elevation that allow for easier interpretation than pseudo sections, particularly when multiple arrays and dipoles are employed on the same line.

The 2010 magnetic survey was conducted using a GSM-19W v70 magnetometer. The lines were oriented north-south and spaced at 50 m intervals with readings taken at about every metre. The following products were prepared: Total Field, Pole Reduced (refer to Figure 9.1), Horizontal and Vertical Derivatives (dX, dY, dZ), Tilt Derivative, Analytic Signal (J. Jordan, 2010).

The combination of ground magnetic, chargeability and resistivity anomalies is interpreted by Argali as an expression of the alteration system at Cerro Maricunga. The pole reduced magnetic data form a well-defined magnetic low ring (Figure 9.3) that is coincident with the ring of low resistivity observed at greater depths. The coincident magnetic low–resistivity low rings appear to correlate with mapped argillic alteration (smectite-kaolinite) zone. In turn, the magnetic–resistivity low anomaly is ringed by a shallow chargeability high which is interpreted by Argali as a shallow pyritic halo surrounding the argillic zone (Figure 9.4) but not directly associated with the gold mineralization. The following is taken from Jordon, 2011): “Composite grid showing the Pole Reduced Magnetic Grid (background) and the plan view of the resistivity at 4500 m (semi-transparent grid). The near-coincident ring of resistivity low and magnetic low appears to correlate closely a halo of argillic alteration. The central target area hosts near-coincident resistivity high and magnetic high. The southern, northern, and western portions of the argillic alteration halo are well-defined. The eastern margin is not well defined because the resistivity and magnetic high extend to the east. A possible eastern limit of argillic alteration is indicated by the dashed green line; however, it is noted that both the argillic alteration and target zones could extend further east. The marked target zone is approximately 1 km2.”

The relatively higher resistivities associated with the gold deposits are interpreted by Argali as caused by higher levels of silicification and quartz veinlets and lower levels of conductive clay content compared to the argillic alteration ring zone. The magnetic high is interpreted as being caused by the higher magnetite content associated with the mineralized quartz veinlets and breccias.

The chargeability of the central area is variable. Near the surface, the chargeability is anomalously low. At greater depths (150-300), moderately high chargeabilities are observed (Fig. 9.5). The low chargeabilities zones are interpreted by Argali as strongly oxidized zones with little or no remnant pyrite content. The deeper moderately-high chargeability anomalies were initially interpreted as being related to sulfide mineralization (mostly pyrite) occurring at depth below the level of oxidation. However, this interpretation is not supported by what is observed in the drill holes and, in fact, essentially no sulphides (locally rare) have been encountered during the drill programs with drill holes extending to depths of more than 550m below surface.

Figure 9.5 is a “generalized” interpretation of Line 479000E showing the central target zone of higher resistivity (and magnetite) that is flanked on both sides by lower resistivities interpreted as argillic alteration.

Figure 9.3 – Shaded Pole Reduced Ground Magnetics

Taken from Jordan, 2011

Figure 9.4 - Interpretation of IP Results Overlain on Ground Magnetics.

Taken from Jordan, 2011

Both trench samples and drill samples were initially sent to Asesoría Minera Geoanalítica Ltda. (“Geoanalítica”), for assay preparation at its Copiapó facilities and from there to its laboratory in Coquimbo, Chile, for gold fire assay on 50 gr pulps with Atomic Absorption spectrographic finish, and copper by atomic absorption spectrography. From December 17th 2010 to the end of the campaign, the pulps continued to be prepared by Geoanalítica but were then sent for assay at the Activation Laboratorios Ltda. (“Actlabs”) laboratory, also in Coquimbo. Actlabs performed the gold assays using a 50 gr fire assay with an Atomic Absorption Spectroscopy (AAS) finish and the copper assays were assayed for using 3 acid aqua regia analytical techniques (to 1 ppm Cu). A total of 2,350 trench samples and 15,722 drill samples (including 1,789 control samples for QA/QC) were analyzed. The QA/QC samples which totaled 11.4% of the drill hole samples, consisted of 534 standard reference samples, 187

blanks, 534 field duplicates and 534 pulp duplicates. No standards, field blanks or field duplicates were used for trench sampling control.

Specific gravity determinations on 10cm long drill core samples were completed for 122 core samples of Phase II drilling at the Vigalab laboratory in Copiapó.

Figure 9.5 – Cerro Maricunga IP-Resistivity Line 479000

Taken from Jordan, 2011

Topographic restitution based on 3D Ikonos satellite images was completed by contractor GIS Consultores. The surveys for all the trenches, roads and drill collars were done by differential GPS and by conventional survey means.

An Environmental base line study was completed by Arcadis Chile. This study characterized the Flora, Vegetation, Fauna, Historical-Archeological Heritage and Indigenous communities present in the project area. An environmental statement, “Declaración de Impacto Ambiental” (DIA), was submitted to the environmental authorities on May 2011, in order to obtain the appropriate permit to continuing

exploring the Cerro Maricunga Project. As at the date of this report, Atacama is waiting for the final approval which is anticipated shortly.

It is the authors’ opinions that the work that has been performed at Maricunga has been properly executed. The author recommends that Atacama should drill in-fill holes (combined RC and DD) so as to upgrade the inferred and indicated resources that they have defined to the measured and indicated categories, and that additional exploration drilling be performed to test the other geophysical/geochemical anomalies at Maricunga. There are no assurances that additional drilling will result in upgrading the resources.

10.0 DRILLING

The drilling performed by Atacama at Maricunga was conducted during the 2009-2010 and 2010-2011 field seasons, Phases I and II respectively, is summarized as follows: a total of 2,142 m (5 RC – 1422 m; and, 3 DD – 720 m) were drilled in 2009-2010; and, a total of 31,461 m of RC and DD drilling in 82 inclined holes (60 RC – 24,580 m and 22 DD - 6,881 m). The bulk of the holes were drilled at N45oE and at an inclination of -60o. Core size was mainly HQ although on occasion, the core size was reduced to NQ. The area that has been drilled has approximate dimensions of 2.5 km NW-SE x 0.3-0.5 km NE-SW. The drilling was generally conducted on an approximate 50 m x 50 m grid in the Phoenix (Central) zone and more widely spaced in the Lynx (North) and Crux (South) zones. The drilling that has been conducted at the Maricunga is summarized in the Figure 10.1 (Drill Hole Plan) and on drill hole cross sections (Figures 10.2 to 10.4).

It is the authors´ opinions that there are no drilling, sampling, or recovery factors that could materially impact the accuracy and reliability of the results.

Figure 10.1 - Maricunga Project – Drill Hole Plan

Drafted by SBX

Figure 10.2 – Cross Section 2100 NW – Lynx Zone

Drafted by SBX

Figure 10.3 – Cross Section 2400 NW – Lynx Zone

Drafted by SBX

Figure 10.4 – Cross Section 1600 NW – Phoenix Zone

Drafted by SBX

11. SAMPLE PREPARATION, ANALYSES AND SECURITY

The following summarizes the manner in which Atacama manages the drill hole samples:

 Atacama uses a carefully designed and controlled QA/QC (Quality assessment/quality control) program.  Drill core and cuttings are handled by Atacama personnel and/or SBX sub- contracted personnel from the moment that the core/cuttings exit the drill. Core and cuttings are transported daily to the Atacama Paipote core logging and core/cuttings storage facility.  Atacama personnel were present at all times that the drills were in operation.  Reverse circulation - The RC cuttings are split in a standard cuttings splitter with ¼ of the sample (17-18 kg) being put into a pre-labeled plastic bag under the supervision and control of Atacama personnel at the drill site. The ~ 70-80 kg sample was split down to an ~ 7 kg sample which was collected in a plastic sample bag which was appropriately labeled with sequentially numbered sample tags which were inserted into the wrapped top of the sample bag and the bag staple sealed. At the RC drill rig, an Atacama geological technician collects a representative sample (dust and cuttings) at 2-meters intervals in properly marked and identified plastic “chip” trays, which are used for logging purposes. Field duplicate samples are inserted at a rate of approximately 1 per 20 samples. The sample stream is labeled (tagged) such that when the samples have been ground to 90% passing –10 mesh and then crushed to 95% passing -150 mesh the appropriate standards, blanks and duplicate pulps can be inserted (~ 7 - 8%). The cuttings are then taken to the exploration camp for storage until transported to Paipote.  At Paipote, the samples are sent to Geoanalitica for grinding and crushing and are then returned to Atacama for insertion of the standards, etc. (refer to Figure 11.1)  Diamond drill core is boxed at the drill site, where it is properly taken from the core barrel. The recovery, RQD, and fracture frequency are measured by a geological technician. The core boxes are properly sealed such that there will be no movement or separation of the core, and are then transported to the camp.  The core is pre-logged and marked for splitting at the camp by a senior geologist after which it is transported to the Atacama facilities in Paipote where the core is split at 2 m intervals with a diamond saw. The bulk (~90%) of the core, which is generally solid, is split using a diamond saw. Where the core is faulted and crushed with considerable amounts of gouge (fines), the core splitter uses a spatula to take approximately 50% of the material in the interval. If the core is fragmented (moderately broken) the core splitter manually selects fragments to take his estimate of what would correspond to a 50% split.  One half of the core is returned to the core box for final logging and storage in Paipote; the other half is properly bagged and labeled. The core samples are retained under lock and key until they are delivered to the Geoanalitica Lab in 47

Coquimbo by Atacama personnel and/or by contracted transport for crushing and grinding. Once the core samples have been prepared for assaying, similar QA/QC procedures are used as for the RC cuttings samples.  The split core is collected in plastic sample bags, which are labeled with prepared sample tags and the samples are sent to the Geoanalitica sample preparation facility in Copiapó where the sample is crushed to – 10 mm, and a 250-300 gram split is taken and ground to -150 mm. The samples are recovered from the sample preparation facility by Atacama personnel and the rejects and pulps are renumbered using sequentially numbered triple stickers. The -10 mm reject is then split down to approximately 4 kg and stored in sequentially labeled sealed plastic sample jars. The balance of the reject is disposed of.   The RC drill samples are then collected into plastics sacks of 6-8 samples and securely transported by Atacama personnel to the Copiapó Geoanalitica sample preparation laboratory where the samples were crushed to 85% passing –10 mm and a 1 kg split is taken and ground to 95% passing -150 mm; a 3-4 kg split of this coarse reject is retained and is stored in plastic jars, with the balance (4 kg) being disposed of. Atacama inserts additional barren samples in the sample sequence at those intervals for which it plans to subsequently insert QA/QC material. At this point, the sample tags are replaced by sequentially numbered stickers (3 stickers per number) and the samples submitted to Geoanalitica for preparation. Geoanalitica returns the pulps and rejects to Atacama, which then sequentially inserts ~ 11-12% QA/QC material (standards, field lab and duplicates and blanks) at selected intervals into the pulp stream. The samples are then delivered to the Actlabs laboratory in Coquimbo by SBX personnel, and/or contacted transport. The author visited the Actlabs facility in Coquimbo on June 15th, 2011.

 The split DD samples which are ground and crushed are sieved to 95% passing - 10 mesh rotary split to 1kg samples and a 4 -7 kg reject (weighing approximately 7 kg for HQ core and 4 kg for NQ core). One in every 30 core samples is split into two 1 kg samples (original and duplicate) and a 6kg reject. The samples are then dried for 3 hours at 105°C, and then each 1 kg sample is ground to 95% passing -150 mesh and split down to two 250 gm and one 500 gm sub-samples. One 250 gm pulp of each original sample and two 250g pulps of the duplicate samples (named “original”, “coarse duplicate” and “pulp duplicate”) are returned to Atacama for the insertion of the standards (one standard per 30 samples) and re- numbering. The DD hole samples are grouped in batches as are the RC samples and sent again to Geoanalítica which internally delivers the batches to its lab in Coquimbo for assaying. Effective December 17th 2010 Atacama began to send all its samples to Actlabs in Coquimbo.

 Atacama collected the prepared pulps and inserted the field duplicates, standards and blanks as part of the entire hole batch, utilizing a different sequential numbering system. The re-numbered pulps were then re-delivered to

the sample preparation facility in Paipote which then shipped the samples to the Geoanalitica and subsequently the Actlabs laboratories in Coquimbo. At each stage of the process, Atacama utilized shipping slips which were signed as appropriate by Geoanalitica and subsequently by Actlabs and by Atacama.

During the Phase II drilling program, sample quality assurance and quality control measures included the insertion of duplicates, standards and blanks. Statistical analyses were performed for: 417 RC field duplicates; 117 DD coarse and 534 pulp duplicates. Additionally, 534 Geostat Pty certified standards (260 ppb, 850 ppb, 1960 ppb Au) and 238 blanks were used for QC purposes.

The overall conclusions that can be drawn from the QA/QC work that was performed are as follows:

1. Analyses of the duplicates show good precision, indicating that the protocols used for sample preparation and assaying were adequate. 2. Analyses of standards used during exploration show good accuracy. 3. Analyses of blanks show no serious contamination problems between samples. 4. The overall conclusion is that QA/QC data generated throughout the drilling at Maricunga meets acceptability criteria and that the exploration data can be relied upon for the resource modeling and estimation.

Figure 11.1 – DDH Sample Preparation Flow Diagram

T Mapeo Geológico E Regularización S Recuperación T RQD I FF G Línea de corte-Fotos O

Core Box

QA-QC

 Selección Tramos Duplicados Gruesos  Selección Ubicación Blancos

Corte de testigo a lo largo de su eje en dos mitades, en intervalos de 2 m.

GUARDAR MITAD TESTIGO ± 8Kg aprox. ± 8Kg aprox.

Guardar en bolsa plástica y etiquetar con etiqueta para proceso de preparación mecánica de muestra. 

Split core into core box

BLANCO: 8 Secado 105 ºC kg 4-8 hrs 1/60 muestras

+10# Chancadora Mandíbula ROCKLABS

Tamiz Vibratorio 10#

-10# (95% -10#) Capacho 1/8 parte Divisor Rotatorio ESSA 40 incrementos, mínimo

DUPLICADO GRUESO – 1/30 muestras (Dos capachos 1/8 parte) -Capacho L y Capacho D

1 Kg 7 Kg 1 Kg 6 Kg Reducir c/ divisor M RG RG1 RG rotatorio a ± 2.5 k

Secado 105 ºC Horno Guardar en 2-3 hrs Secado frasco plástico

Pulverizador LM-2 (3 minutos) Pulverizador LM-2 (3 minutos)

95% -150# 95% -150#

250 g 250 g 500 g 250 g 250 g 500 g MP1 MP2 MP3 RGP1 RGP2 RGP3

Una vez que Paipote entrega los sobres con las pulpas para análisis, se procede a insertar los ESTANDARES (1/30 muestras) y los DUPLICADOS DE PULPA (1/30 muestras). Luego se etiquetan con códigos de barra (re-enumeran) para el proceso de análisis químico que se lleva a cabo en el Laboratorio.

Effective Dec. 17, 2010 Atacama began to send the prepared samples to the Actlabs assay facility in Coquimbo. Geoanalitica and Actlabs analyzed the drill samples for gold and copper. The gold assays were performed utilizing 50 gr fire assay with an Atomic Absorption Spectroscopy (AAS) or gravimetric finish; the copper was assayed for using standard wet analytical techniques.

Atacama has no relationship with Geoanalitica or with Actlabs other than as a client. Geoanalítica is an ISO9000:2001 certified laboratory. Actlabs is an ISO/IEC 17025 accredited laboratory. A number of major mining companies, including Barrick, Codelco and Antofagasta Minerals, utilize Geoanalitica’s services. Likewise, a number of major companies utilize Actlab´s services including Antofagasta Minerals, Minera Teck, Carmen de Andacollo, Gold Corp, Kinross, Enami, etc.

The following summarizes the sample preparation procedures used at the Geoanalitica Paipote sample preparation facility (Fig.11.1):

a. The samples are coarse crushed to 95% passing 10 mesh; b. The material is then rotary split with 50% (~8 kg) of the sample being returned to Atacama for storage. The other 50% is rotary split to 2 – 1 kg samples and one 6 kg - samples. The 6 kg sample is retained as a coarse duplicate and stored. c. One of the 1 kg samples is then dried and ground to 95% passing -150 mesh and an “original” 250 grams pulp is taken; d. The second 1 kg duplicate is likewise dried and ground (95% passing -150 mesh) and 3 splits are taken – 2 – 250 grams splits (duplicate coarse and duplicate pulp) to be assayed; e. The remaining 500 gram split is stored.

In Coquimbo, Geoanalitica assays the received pulps as summarily described:

a. 50 grams of material are subjected to a standard 50 gram fire assay; typically an AA finish is used, however if the resulting values are greater than 3 g/t Au then the reported result will be obtained using a gravimetric finish; the lower detection limit for Au is 5 ppb. b. Copper is analyzed for utilizing a 4-acid digestion and an AA finish with a lower detection limit of 3 ppm. c. Geoanalitica employs extensive QA/QC techniques to assure the quality of its assays. Fire assay analyses are run in batches of 48 samples; 41 samples are client samples and 7 samples (15%) are laboratory (internal) inserted control which includes 4 duplicates, 2 standards and 1 blank.

Geoanalitica uses internationally accepted techniques and standards at all levels of the sample preparation and sample assay procedure to assure quality control. As indicated

above, the laboratory inserts its own controls which comprise 17% of the sample batch using a combination of standards, blanks and duplicates to maintain quality control.

As reported above, from December 17th 2010, the samples batches were sent to Actlabs laboratory in Coquimbo for assaying, instead of to Geoanalítica.

a. Actlabs continued to assay the samples for Au and Cu. Gold was analyzed for using a 50 gm standard Fire Assay with an Atomic Absorption (AA) finish. Approximately 50 grams of material are subjected to a standard 50 gram fire assay; typically an AA finish is used, however if the resulting values are greater than 3 g/t Au then the reported result will be obtained using a gravimetric finish; the lower detection limit for Au is 5 ppb.

b. Copper is analyzed for utilizing a 4-acid digestion and an AA finish with a lower detection limit of 3 ppm

c. Actlabs employs extensive QA/QC techniques to assure the quality of its assays. Fire assay analyses are run in batches of 38 samples; 34 samples are client samples and 4 samples (15%) are laboratory (internal) inserted control which includes 2 duplicates, 1 standards and 1 blank.

Atacama collected the prepared pulps and inserted the field duplicates, standards and blanks as part of the entire hole batch, utilizing a different sequential numbering system. The re-numbered pulps were then re-delivered to the sample preparation facility in Paipote which then shipped the samples to the Geoanalitica laboratory in Coquimbo. At each stage of the process Atacama utilized shipping slips which were signed as appropriate by Geoanalitica and by Atacama.

The QA/QC techniques that were used by Atacama have produced verifiable and generally reproducible results. This has been achieved by statistically evaluating the results coming out of the Geoanalitica/Actlabs predominantly on the reproducibility of the purchased standards (260 ppm, 850 ppm, 1,960 Au). The variation between the standards, blanks and duplicate samples has generally ranged within accepted parameters for normal laboratory and geologic based parameters. All of the blanks returned low values which indicated that there was no contamination being introduced by the preparation of the samples. In the event that an inserted standard did not return an assay which lies within 2 standard deviations of the mean standard value, Atacama instructed the laboratory to re-assay the entire (laboratory) batch. Where a duplicate sample did not replicate the original assay (within ~10% for values >1,000 ppb Au and within ~ 20% for values <1,000 ppb Au) the duplicate would be rerun and if the difference remained then a new sample would be prepared for assay.

Table 11.1 and Figure 11.2 which are taken from SRK et al (2011) confirm that the QA/QC procedures used by Atacama at Maricunga were appropriate and that the assay results can be relied upon.

Table 11‐1: Summary of QAQC results for duplicate samples ‐ Au RC – Au (ppm) DDH – Au (ppm) Pulp – Au (ppm) Results Original Duplicate Original Duplicate Original Duplicate Number of samples 417 417 117 117 534 534 Minimum 0.003 0.003 0.006 0.006 0.00 0.00 Maximum 2.790 2.989 2.261 2.236 2.99 2.66 Mean 0.269 0.270 0.316 0.317 0.28 0.28 Std. Deviation 0.336 0.336 0.357 0.355 0.34 0.34 Test T (of the means) ‐0.36 ‐0.53 0.30 Mean Relative Error (%) 13.86 5.24 11.31 Correlation (r) 0.989 0.999 0.998 Intercept 0.004 0.003 0.003 Slope 0.989 0.993 0.987 “In all cases the original and duplicate data show good agreement.”

Figure 11.2 – Maricunga QA/QC Geostatistics – RC-DD Gold Pulp Duplicates

It is the author’s opinion that sample collection (RC and DD), preparation, security and analytical procedures are being properly done and that the results that are being returned are reproducible and may be used for resource estimations.

The duplicate samples, pulps, and split core are maintained in a secure (24 hour guards) facility in Paipote.

Atacama is very conscientious about its sample preparation, security and storage procedures, and maintains a tight control on all sample collection, transportation, processing and storage.

At no time, or in any aspect, is an officer, director or associate of the issuer (Atacama) involved in any aspect related to the sample collection through to the sample preparation and shipping to the laboratory. The relationship between Geoanalitica/Actlabs and Atacama is strictly that of a service provider to a client.

As described above, Atacama continued to use Geoanalitica to prepare all of samples for assay subsequent to December 7th, 2011, when Atacama elected to have all of the pulps sent to Actlabs for gold-copper assay.

12.0 DATA VERIFICATION

The author has reviewed approximately 10% of the original assay certificates issued by Geoanalitica/Actlabs for the Atacama sampling that has been performed at Maricunga and confirmed that these results have been properly transferred to the appropriate worksheets and maps. The property visits have furthermore served to confirm that the geology and alteration as mapped and logged is generally as described. The sampling that was performed by Atacama was properly done by Atacama personnel. The author have reviewed the procedures being used to log the DD core and the RC cuttings (as described in Section 10), and have confirmed that the logging was being properly performed. Statistical analyses of the inserted blanks, standards, and duplicates (field and pulp) confirm that the assaying is being properly performed and that the drill hole data may be confidently used to for resource estimations.

The drill core recoveries are generated with a tape measure where the distance from the top of the core barrel (after it has been brought to surface) to the top of the core is taken, and the percentage recovery is calculated. The author confirmed the recorded core recoveries for selected intervals of core. Typically, where the core is not faulted or fractured, recoveries are on the order of 100%. Where the core is strongly broken and/or faulted recoveries are on the order of 25 to 75%.

The 3 m core boxes are transported to the campsite where the geologist re-assembles the broken core and records the appropriate RQD measurements, as well as performing a pre-log. The faulted (crushed and gouge intervals) were not re-assembled or shaped to approximate the core dimensions. The core boxes are then securely transported to

the storage facility in Copiapó where the core is logged in detail and split at 2 m intervals.

On March 31st, 2011 the author visited the Copiapó (old) storage facility where he reviewed and confirmed the logging of selected core and cuttings intervals. On June 1st, 2011 the author visited the newly occupied storage, logging and core splitting facility which is located in Paipote, immediately outside of Copiapó. The core boxes are properly stored in racks which can be easily accessed. The drill rejects and pulp rejects are stored in properly labeled and sealed plastic jars.

Statistical analyses performed by Atacama on the combination of standards, blanks and duplicates inserted into the drill sample stream has assured that the Geoanalitica/Actlabs laboratories are generally producing repeatable and reliable assay results. In view of the very extensive insertion of QA/QC samples (blanks, standards, field and pulp duplicates) and the very positive results obtained, the author did not take any duplicate pulps, or rejects, for check analysis.

It is the author’s opinions that the work that has been performed at Maricunga by Atacama has produced data that can be reliably used to generate resources.

13. MINERAL PROCESSING AND METALLURGICAL TESTING

In 2008, AMTEL (Advanced Mineral Technology Laboratory Ltd), London, Canada, performed 6 cyanide bottle roll tests on 3 samples taken at trench sample from Maricunga. Table 13.1 summarizes the test data which suggested to AMTEL that the oxidized gold bearing material at Maricunga may is heap leachable with recoveries varying from 76.8 to 91%. A bottle roll test was conducted on material from each of the 3 samples which had been ground to 80% passing -1 mm. Three additional tests were completed on finer ground material, between 80% passing 80 and 108 micron.

Table 13.1 – Preliminary Maricunga Bottle Roll Metallurgical Test Work (2008)

Head Tails Gold Sample Sample Grind Consumption Grade Assay Recovery No. 80% Passing Lime kg/t NaCN kg/t Au g/t Au g/t % 1 mm 2.0 1.76 1.405 0.327 76.8 201506 80 µm 2.0 1.24 1.405 0.251 82.1 1 mm 2.3 2.02 0.804 0.113 85.9 201517 108 µm 2.4 1.92 0.804 0.084 89.5 1 mm 3.1 2.14 0.587 0.061 89.6 201582 94 µm 3.0 1.38 0.587 0.583 91.0

Each bottle roll test comprised samples weighing between 0.2 – 1.0 kg; the leach tests were run for 48 hours at a solution pH of between 10 and 10.5. This material was leached for 20 hours using a low concentration (0.3g/kg NaCN) cyanide solution which returned a gold recovery estimated to be 87%. Additional details on the 2008 test work may be found in the Technical Report “Easdon M., Techical Report on the Cerro Maricunga Gold Project, Region III, Chile” dated August 20, 2011.

On December 9, 2010, Atacama report column percolation leach tests returned gold recoveries varying from 79 to 89% (Table 31.2) from composite samples prepared from Phase I diamond drill core. Column tests 1 and 2a were conducted utilizing material crushed to 80% passing 19 mm and column test 2b was conducted on material crushed to 80% passing 9.5 mm. The difference in crush size had no significant impact on gold recoveries as shown from a comparison of results from Composite 2a (19 mm crush and 79% Au recovery) and Composite 2b (9.5 mm crush and 80% Au recovery).

The column tests, conducted by Kappes, Cassidy and Associates (‘KCA”), Reno, Nevada, were run for 57 days with leach recoveries levelling out after only seven days indicating fast leach kinetics. Column tests were not optimized for sodium cyanide (“NaCN”) consumption with 1.03 to 1.19 kg/t NaCN consumed. Projected NaCN consumption in production heaps is typically 25 to 33% of the NaCN consumption achieved from laboratory testing. All three column tests showed no slumping which is an indication of good potential permeability in production heaps.

Atacama Pacific’s metallurgical testing program is managed by AMTEL (Advanced Mineral Technology Laboratory Ltd), London, Canada. bottle roll tests were conducted by Kappes, Cassidy and Associates, Reno, Nevada.

Table 13.2 – Summary of Column Leach Test Results

Crush Gold NaCN Hydrated Additional Slump Head Grade Composite Size Recovery Consumption Lime Lime Percentage Test (mm) (g/t Au) (%) (kg/t) (kg/t) (kg/t) (%) 1 19.0 1.13 89 1.03 3.08 1.01 0 2a 19.0 0.76 79 1.06 3.07 1.01 0 2b 9.5 0.79 80 1.19 3.06 1.01 0

Approximately 29.5 kilograms of composite sample material was stacked to a height of 1.6 metres in 127 mm diameter columns. The columns were run as continuously drained leach tests with alkaline cyanide solution continuously cycled through the columns at a rate of 10 to 12 litres per hour per square metre of column surface area.

The initial leach solution for each column contained 1.0 gram NaCN per litre (“g NaCN/L“) of solution and during the test, the continued cyanide strength was maintained at a target level of 0.5 g NaCN/L. Protective alkalinity was maintained at a

pH level of 9 to 11 by the initial addition of hydrated lime and cement during the column setup and additional lime was added, if necessary, to maintain the alkalinity. The column tests continued for a period of 57 days. Leach solutions were tested daily for pH and NaCN, gold and silver content. Starting on leach day 44, the columns were allowed to rest from leaching for seven days to determine if gold extractions would increase after the rest period. After the seven day rest period, the columns were leached for an additional 3 days and rested for a further 4 days. Gold recoveries, as reported in Table 1, varied from 79 to 89%.

The height of each column was measured before and after leaching to calculate the percent slump of the sample material. The percent slump gives an indication of potential permeability problems in production heaps. All three column tests showed no slumping with a percent slump of 0%.

Upon completion of the 57 day leach test, all columns were dumped, reloaded and releached for a period of 14 days to determine if additional gold extraction was possible. The gold extraction from this period is not included in the results presented in Table 1. Approximately 1% additional gold extraction was observed during the additional 14 day period. Column test extraction results were based upon granular activated carbon assays vs. the calculated head grade (carbon assays plus tail assays).

The column tests followed up on the September 2010 results from 20 bottle rolls tests completed two composite sample of quartered drill core from which the column test material was comprised. The bottle rolls were conducted to assess the impact of grind size on gold recovery and returned recoveries varying from 75 to 81% (table 13.3) on samples crushed to 19 mm with relatively fast leach kinetics: 90% of the extractable gold was recovered within the first 96 hours. Lime consumption averaged 3 kg/t (2.5 to 4.0 kg/t) and NaCN consumption averaged 0.15 kg/t (<0.1 to 0.3 kg/t) Bottle roll tests on finer ground material, as summarized in Table 2, showed higher recoveries. The bottle roll tests were run for 10 days with test charges of 5,000 grams for the 19 mm and 12.5 mm grind tests and 1,000 grams for the 9.5 mm, 6.3 mm and 1.0 mm grind tests. Fluid pH was maintained in the 10 – 11 range with lime and NaCl concentration was kept at 1 g NaCl/L.

Table 13.3 - Metallurgical Test Results - 1.0 to 19.0 mm Grind Bottle Roll Grade Gold Recoveries (%) Sample (g/t Au) 19.0 mm 12.5 mm 9.5 mm 6.3 mm 1.0 mm

Comp. 1 1.08 81 81 83 83 86 85 85 80 88 88

Comp. 2 0.78 76 75 77 75 78 77 79 78 80 79

Table 13.4 – Summary of Bottle Roll Leach Test Results – August 2011

Composite 4 1 Composite 5 1 Composite 6 1

(Grade - 0.28 g/t Au) (Grade - 0.50 g/t Au) (Grade - 0.58 g/t Au)

Crush Avg. Gold Avg. Gold Avg. Gold NaCN Lime NaCN Lime NaCN Lime Size Recovery 2 Recovery 2 Recovery 2

P80 (mm) % (kg/t) (kg/t) % (kg/t) (kg/t) % (kg/t) (kg/t) 50.0 66 0.12 1.50 65 0.08 1.00 55 0.07 4.10 25.0 71 0.08 1.80 68 0.15 1.00 59 0.09 4.80 12.5 75 0.02 2.25 81 0.08 1.50 63 0.02 5.25 6.3 76 0.02 2.50 82 0.03 2.00 68 0.06 6.00 1.0 83 0.06 2.50 77 0.08 2.50 79 0.03 6.00 0.1 87 <0.01 3.00 89 0.03 1.50 82 <0.01 7.00

1. Composite 4 and 5 were created from composited drill core and Composite 6 was collected from surface mineralization 2. Reported recoveries are an average of two tests completed at each crush size

Following up on the positive metallurgical results, Atacama contracted KCA to conduct a series of bottle roll tests with the goal of examining optimal crush sizes. Eighteen bottle roll tests were completed, in duplicate (36 tests total) at crush sizes varying from 0.1 mm to 50 mm. The results are summarized in Table 31.4. The test results demonstrate that gold recoveries are not strongly dependent upon the head grade, although the finer grained material achieved the highest gold recoveries. Gold recoveries from Composite 4 and 5, which graded 0.28 grams per tonne gold (“g/t Au”), and 0.50 g/t Au, respectively, varied from 65% to 89%. At comparable crush sizes, the results were consistent with the gold recoveries reported from the series of 20 bottle roll tests completed on Composite 1 and Composite 2 reported in Table 13.3 Testing on Composite 6 returned lower recoveries, varying from 55% to 82%, however, the sample was collected from mineralization exposed on surface and may have been affected by weathering. Gold extractions were fast with 60% to 84% of the extractable gold, at the 25 mm crush, recovered in the first 24 hours. With increasing grind fineness, leach kinetics improved with 84% of the extractable gold recovered during the first 24 hours on 0.1 mm crushed material. Fluid pH was kept in the 10 to 11 range with lime and NaCN concentration maintained at 1 g/L. NaCN consumption was very low, ranging from <0.01 to 0.12 kg/t, similar to the results from the 2010 series of bottle roll tests. Lime consumption from Composite 4 and 5 varied from 1.0 to 3.0 kg/t, also consistent with the 2010 results. Composite 6, collected from surface, was an exception requiring 4 to 7 kg/t of lime.

AMTEL and KCA are continuing to conduct metallurgical test work on behalf of Atacama.

The author is not aware of any processing factors or deleterious elements that could have a significant effect on potential economic extraction based on the very limited test work that has been performed. The author is not aware as to what extent the leach tests are representative of the various types and styles of mineralization and the mineral deposit as a whole.

14.0 MINERAL RESOURCE ESTIMATES

SRK, et al (July, 2011) completed a computerized (Vulcan) resource estimation for the resources which had been developed at Cerro Maricunga. This work resulted in the estimation of 92.8 million tonnes grading 0.54 g/t Au (1.616 million ounces of gold) in the indicated resource category, and 116.7 million tonnes grading 0.52 g/t Au (1.946 million ounces of gold) in the inferred category which were generated at a cutoff grade of 0.3 g/t Au. The author has selectively excerpted pertinent sections from the report which was prepared with input from Magri Consultores, and NTK (SRK et al, 2011). Table 14.1 details the estimated resources at different gold grade cutoffs.

Table 14.1 - Maricunga Indicated and Inferred Resources

Indicated Category Inferred Category Gold Gold Cut-off Tonnes Grade Tonnes Grade Ounces Ounces (g/t Au) (millions) (g/t Au) (000’s) (millions) (g/t Au) (‘000’s) 0.1 163.1 0.40 2,094 354.6 0.29 3,321 0.2 134.1 0.45 1,949 202.5 0.40 2,626 0.3 92.8 0.54 1,616 116.7 0.52 1,949 0.4 59.8 0.65 1,247 69.2 0.64 1,429 0.5 40.8 0.74 973 47.7 0.73 1,121 0.6 28.7 0.83 761 34.4 0.80 887 0.7 19.4 0.91 569 21.4 0.90 617 0.8 13.0 0.99 413 13.8 0.98 435 Taken from SRK et al; All quantities are rounded to the appropriate number of significant figures, consequently sums may not add up due to rounding.

Indicated and inferred resources for Lynx, Phoenix and Crux are shown in Table 14-2.

Table 14.2: CERRO MARICUNGA – GEOLOGICAL RESOURCES BY ZONE - 2011 Lynx (North) Zone Indicated Category Inferred Category

Cutoff Tonnes Grade Gold Ounces Tonnes Grade Gold Ounces (g/t Au) (millions) (g/t Au) (000’s) (millions) (g/t Au) (‘000’s) 0.1 48.0 0.40 614 114.5 0.36 1,322 0.2 36.0 0.48 554 79.8 0.44 1,139 0.3 25.5 0.57 470 49.5 0.57 901 0.4 18.5 0.66 391 34.8 0.66 739 0.5 13.3 0.74 316 26.6 0.73 623 0.6 9.1 0.83 243 21.5 0.77 532 0.7 6.4 0.91 188 12.7 0.86 351 0.8 4.5 0.98 140 8.7 0.90 253

Phoenix (Central) Zone Indicated Category Inferred Category

Cutoff Tonnes Grade Gold Ounces Tonnes Grade Gold Ounces (g/t Au) (millions) (g/t Au) (000’s) (millions) (g/t Au) (‘000’s) 0.1 115.1 0.40 1,480 105.4 0.28 932 0.2 98.2 0.44 1,395 72.2 0.33 770 0.3 67.4 0.53 1,146 34.1 0.43 470 0.4 41.3 0.64 856 13.5 0.57 247 0.5 27.6 0.74 658 7.7 0.66 165 0.6 19.6 0.82 518 3.6 0.81 94 0.7 13.0 0.91 381 2.5 0.88 70 0.8 8.5 1.00 273 1.2 1.04 41

Crux (South) Zone Indicated Category Inferred Category

Cutoff Tonnes Grade Gold Ounces Tonnes Grade Gold Ounces (g/t Au) (millions) (g/t Au) (000’s) (millions) (g/t Au) (‘000’s) 0.1 - - - 67.2 0.37 801 0.2 - - - 49.8 0.44 712 0.3 - - - 33.1 0.54 577 0.4 - - - 21.0 0.66 443 0.5 - - - 13.4 0.78 334 0.6 - - - 9.2 0.88 261 0.7 - - - 6.2 0.99 197 0.8 - - - 3.9 1.14 142

The author is not aware of any environmental, permitting, legal, title, taxation, socio- economic, marketing, political, or other relevant factors which could materially affect the resources as developed at Maricunga to date.

Data used for the resource estimation consisted of reverse circulation and diamond drill hole samples as shown in Table 14.3.

Table 14‐3. Statistics on Drilling Phases 2010 and 2020‐2011 and QA‐QC

Drilling Campaign 2010 2010 ‐ 2011 Total Diamond Drilling ‐ DDH N° Drillholes 3 22 25 N° Samples 361 3,439 3,800 Meters Analyzed 719.90 6,880.65 7600.55 QA ‐ QC N° Standards 19 117 136 N° Blanks 5 48 53 N° Coarse Rejects ‐10 # 17 117 134 N° Pulp Duplicates 17 117 134

Drilling Campaign 2010 2010 ‐ 2011 Total Reverse Circulation Drilling ‐ RC N° Drillholes 5 60 65 N° Samples 711 12,283 12,994 Meters Drilled 1,422.00 24,566.00 25,988.00 QA ‐ QC N° Standards 29 417 446 N° Blanks 13 139 152

N° Field Rejects 22 417 439 N° Pulp Duplicates 22 417 439

Drilling Campaign 2009 ‐ 2010 2010 ‐ 2011 Grand Total DDH + RC N° Drillholes 8 82 90 N° Samples 1,072 15,722 16,794 Meters Analyzed 2,141.90 31,446.65 33,588.55 QA ‐ QC N° Standards 48 534 582 N° Blanks 18 187 205 N° Field/Coarse Rejects 39 534 573 N° Pulp Duplicates 39 534 573 Total QA ‐ QC 144.0 1,789.0 1,933.0 % QA ‐ QC Assays 13.4 11.4 11.5

The following has been excerpted by the author from pertinent sections from the “Cerro Maricunga Resource Estimate – 2011” report which was prepared by SRK with input from Magri Consultores, NTK, and Atacama (SRK et al, 2011).

14.1 Gold Mineralization Envelopes

Gold mineralization in Cerro Maricunga is hosted in a series of units, and tends to be concentrated along contacts between them, rather than in specific lithological types, thus indicating that mineralization is controlled by structures mainly. The size of native gold particles and grades do not allow defining its “definitive” presence while logging, therefore the “possible” presence of gold in core samples is suspected when specimens show banded veinlets associated to porphyry or breccia types. These characteristics make it difficult to interpret a model based in geological parameters, especially considering the amount of diamond drill core available; 6.4% of total meters drilled.

The “best” modeling method, while exploring this type of deposits, usually consists of modeling veinlet occurrences, structures and “grade-shells”, however, veinlet occurrence models require a larger amount of drill core data than that available at this early stage of exploration of the Cerro Maricunga deposit, therefore the model used for the current resource estimation considers structures and grade-shells only.

The model was generated using the following data: 1. Surface maps containing lithological units, structures and trenches with assays. 2. Geological descriptions (logging) of 2,141.90 meters of core specimen and assays. 3. Lithological descriptions (quick-logging) of 31,446.65 meters of RC cuttings and assays.

A total of 48 sections (300-NE to 2650-NE) and 12 plans (4,950 down to 4,400) were interpreted by hand. Section and plan spacing was 50 meters using a ± 25-m influence. Structures mapped at surface were interpolated in sections and plans. Grade-shells of 150, 200 and 300 ppb were contoured and interpolated, as well as know barren porphyry units.

Figure 14.1 depicts a schematic level plan (not scaled) showing structures, grade-shells and barren porphyry units included in the hand-made interpretation:  Barren porphyry  green  150 ppb contour  blue  200 ppb contour  yellow  300 ppb contour  brown

The interpretation depicted in this figure was carried out for the all sections and plans. Figure 14.1: Cerro Maricunga ‐ Non scaled schematic level plan – Model

Resource Estimation Model The hand-interpreted “geology model” based on interpolated sections and plans required using the 150-ppb contour, since it was the only continuous feature that could be interpolated throughout the model. The final model was digitized in AutoCad, exported to GEMS as polygons and finally converted into 3_D solids.

Final solids, based-on 150-ppb contours were generated in Vulcan: North (Lynx) Zone, Central (Phoenix) Zone and South (Crux) Zone. The solids were named “au_150_norte.00t”, “au_150_centro.00t” and “au_150_sur.00t”, for the North, Central and South zones respectively.

Each solid was assigned a specific code: North (Lynx) = 1, Central (Phoenix) = 2 and South (Crux) = 3. Barren zone surrounding these solids is referred to as “Outside” and assigned a code = 0.

Figure 14.2 shows a three-dimensional view of the final solids.

Figure 14.2: 3‐D View of Cerro Maricunga’s Mineralized Zones

F Figure 14.3 corresponds to three-dimensional top view of the deposit with intersecting drillholes.

Figure 14.3: 3‐D Top View – Mineralized Zones and Drillholes

As can be seen from Figs. 14-4 and 14-5, the means and the distributions of gold grades within the mineralized envelopes are very similar thus indicating that the three zones could be estimated as a single unit, however the South Zone (Crux=3) is separated from the North and Central zones by a NE fault. Furthermore, data within the latter zone is sparse and the southern portion of the Central zone was not drilled due to operational problems caused by quality of the ground. Due to these facts, it was decided to separate this unit from the other two. The log probability plots show no obvious outliers since no significant breaks are apparent in the upper portions of these plots for zones 1, 2 and 3.

Figure 14-4: Gold Grade Box Plot within Mineralized Envelopes

10.000

1.000

0.100 (ppm)

0.010

0.001 123outside Q1 0.155 0.181 0.172 0.025 Min 0.007 0.003 0.006 0.003 Median 0.257 0.300 0.290 0.050 Mean 0.388 0.392 0.426 0.065 Max 6.671 4.650 3.078 2.077 Q3 0.463 0.478 0.555 0.087 NSamples 2,217 5,876 1,273 7,426 Envelope

Figure 14-5: Gold Grade Log Probability Plot within Mineralized Envelopes (Grey=0, Red=1, Green=2, Blue=3)

A set of graphs (Figs. 14-6 to 14-8) for the North and Central zones combined are shown below. The log probability plot (Fig. 14-8) of the North and Central zones combined shows a slight break at 3 g/t Au corresponding to the 99.9% percentile. This is addressed in more detail below.

Figure 14-6: Histogram – Au Grades – Lynx Zone

Figure 14-7: Box Plot – Au Grades – Lynx + Phoenix & Crux Zones, and Out

10.000

1.000

0.100 (ppm)

0.010

0.001 12 3 Outside Q1 0.171 0.172 0.025 Min 0.003 0.006 0.003 Median 0.289 0.290 0.050 Mean 0.391 0.426 0.065 Max 6.671 3.078 2.077 Q3 0.473 0.555 0.087 NSamples 8,093 1,273 7,426 Envelope

Figure 14-8: Log Probability Plot – Lynx + Phoenix & Crux Zones and Out

14.2 Capping Grades and High Yield Restrictions

Isolated high grades (outliers) may cause overestimation during the kriging process. To avoid this effect, high grades were “capped” and/or restricted search radii were applied to them. The outlier detection and treatment methodology is as follows:  Grades were sorted in increasing order. Breaks in the top portion of the distribution were identified and were checked against breaks in the log probability plot (Figure 14-8).

The procedure used to determine high yield parameters was as follows:  Grades are ranked according increasing cumulative probability which is almost equivalent to order them from lowest to highest value.  Each grade was assigned a relative error in relation to the previous grade (current grade-previous grade) *100 / previous grade.  Grades were plotted against the relative errors.  A relative error threshold of 5% was assigned arbitrarily to identify outliers, obviously ignoring low gold values, which often have high relative errors.  A shortcoming of this method is that outliers are detected relative to the global distribution rather than locally.  As far as outlier treatment is concerned there are two options available in Vulcan:

- High grade capping, which implies setting outlier grades to the defined threshold. - High yield restriction (HYR) which consists of applying a reduced search radius to samples above a threshold that need not be the same as previously mentioned threshold.  In order to define the restricted search radii for outliers, down hole indicator variograms were prepared using the thresholds as indicators and assigning the range of the first sill as the restricted radii.

Figures 14-9 and 14-10 correspond to down-hole indicator variograms for the North + Central zone (1+2) and outside the mineralized envelopes respectively. Cut-off grades used were 2.0 and 0.43 g/t Au for North + Central zones and outside the mineralized envelopes respectively. This procedure was not applied to the South Zone, since no severe outliers were present (maximum=3.078 g/t Au) and HYR has more far reaching consequences than grade capping.

Figure 14-9: Down the hole indicator variogram – North + Central Zones (1+2)

Figure 14-10: Down the hole indicator variogram - Outside

Isotropic restricted radii were set at 10-m and 6-m for the North + Central zones and outside the mineralized envelope respectively. These correspond approximately to the first sill of the indicator variograms. A summary of grade capping and HYR outside the envelope are shown in Table 14-4.

Table 14-4: Capping and High Yield Restriction (HYR)

Capped N° Probability HYR Relative Restricted Values Error Radii Envelope Grade Grade Capped (g/t) (g/t) (%) (m)

1 + 2 3.00 10 99.88% 2.0 5 10

3 2.35 6 99.53% - - -

Outside 1.00 3 99.96% 0.43 5 6

14.3 Variography This section contains anisotropy analyses via correlogram maps, estimation of the nugget effect using “down the hole” correlograms and definition of final variogram models by calculating directional correlograms for the North + Central zones (1+2), South zone (3) and outside de mineralized envelopes (0). Variogram Maps - Correlogram maps were used to determine spatial variability and preferential directions of mineralization within each zone and outside the envelope.

Maps for zones, Lynx + Phoenix (1+2), Crux (3), and outside mineralized envelopes are shown in Figures 14-11 to 14-13 respectively.

No preferential directions were encountered where the Vulcan® software angle convention was used.

Figure 14.11: Correlogram Map – Au – Lynx + Phoenix Zones (1 + 2)

Figure 14-12: Correlogram Map – Au – Crux Zone (3)

Figure 14-13: Correlogram Map – Au – Outside Mineralized Envelopes (0)

Down the hole (DTH) correlograms for Au within Lynx + Phoenix and Crux zones and outside the mineralized zones are shown in Figures 14-14 to 14-16 respectively. Nugget effects are shown in Table 14-5.

Figure 14-14: Down the hole correlogram – Au – Lynx + Phoenix Zones (1+2)

Figure 14-15: Down the hole correlogram – Au – Crux Zone (3)

Figure 14-16: Down the hole correlogram – Au – Outside Mineralized Zones (0)

Table 14-5: Cerro Maricunga - Nugget Effect

Zone Nugget Effect

North + Central (1+2) 0.06

South (3) 0.06

Outside 0.06

Directional Variograms – Based on the information obtained from the correlogram maps, experimental directional correlograms were calculated for the two main directions. Figures 5-7 to 5-9 show experimental correlograms (points) and fitted models (solid lines). Fitted model parameters (sills and ranges) are shown below each graph. Red and green solid lines correspond to omni-directional horizontal and vertical variogram model respectively. Fitted model parameters are shown in Table 14-6.

Figure 14-17: Directional Variogram – Au – Lynx + Phoenix Zones (1+2)

Figure 14-18: Directional Variogram – Au – Crux Zone (3)

Figure 14-19: Directional Variogram – Au – Outside Mineralized Zones (0)

Table 14-6: Variogram Modeling Parameters

Zone Co C1 ahz aver C2 ahz aver C3 ahz aver

1+2 0.06 0.444 20.0 13.0 0.360 31.0 75.0 0.136 74.0 330.0

3 0.06 0.303 15.0 9.0 0.386 19.0 115.0 0.251 78.0 115.0

OUT 0.06 0.595 25.0 11.0 0.345 74.0 123.0 ‐ ‐ ‐

It is apparent that spatial continuity is very limited. Practical ranges in the horizontal and vertical direction are of the order of 40 and 100-meters respectively.

14.4 Resource Estimation Block model parameters and the gold estimation plan for the Cerro Maricunga deposit are detailed in the sections below.

Block Model Definition – A gold block model consisting of 10 x 10 x 10-m blocks was created. The block model was stored in a file named “MB_cerro_Maricunga_0711.bmf”. Block model parameters are given below:

 X Origin: 480,000  Y Origin: 7,011,600  Z Origin: 4,150

 Bearing: 45° (starting from x-axis)  Plunge: 0°  Dip: 0°

 Model Size X-Axis: 1,200 m  Model Size Y-Axis: 3,000 m  Model Sixe Z-Axis: 1,000 m

 Block Size X: 10 m  Block Size Y: 10 m  Block Size Z: 10 m

The most important features of the model are:

 Au_ppm: estimated Au grade in ppm  Density: Block density  Flag_au: Au estimation pass  ns_au: number of samples used in Au estimation  varkri_au: Au kriging variance  nh_au: Number of drill hole used for Au estimation  dist_au: Average distance of samples in Au estimation  au_150: Ore envelope of 150 ppb Au  topo: topo = 1 equal to air, topo = 0 equal to rock  flag_den: Density estimation pass  categ: Resource classification category  categ_suave: Smoothed resource classification category

Au Estimation Plan – The grade estimation plan for Cerro Maricunga Project was carried out in three (3) passes. General settings are detailed below: - The two first passes were determined according the distribution of the correlogram function for each preferential direction. 77

- The radii of third pass correspond to twice those of the second pass. - All the estimations were performed by the Ordinary Kriging Method. - No anisotropy rotation angles were used since only omni-horizontal and vertical variograms were used. - Grade capping was used in the estimation of all mineralized zones and outside, while HYR was applied in the North + Central zones as well outside the mineralized envelopes. - The maximum number of samples per drillhole was not limited.

The estimation plan is shown in Table 14-7.

Table 14-7: Au Estimation Plan Database cmau.str.isis Au Block Model: AU_PPM Estimation Method Ordinary Kriging Bearing / Plunge / Dip: 90° / 0° / 0°

Search Distances Samples High Yield Zone Pass Discretization Capping Major Semi Minor Min Max Grade Limits 1 24 24 68333 4123.002.00101010 North + Central (1+2) 2 74 74220333 4123.002.00101010 3 148 148 440 3 3 3 1 8 3.00 2.00 10 10 10 1 34 34 75333 4122.35 ‐‐‐‐ South (3) 2 78 78105333 4122.35 ‐‐‐‐ 3 156 156 210 3 3 3 1 8 2.35 ‐‐‐‐ 1 40 40 65333 4121.000.43666 Outside Envelope 2 74 74110333 4121.000.43666 3 148 148 220 3 3 3 1 8 1.00 0.43 6 6 6

Statistics of means and number of blocks estimated in each kriging pass are shown in Table 14-8.

Table 14-8: Block Model Statistics Zones Pass Au (ppm) No of Blocks Tonnage Declusting Estimation % Total Min Max 1 0.380 40,576 24.7 99,344,039 North and Central 2 0.336 110,518 67.3 164,226 269,602,792 0.33 0.39 (1 + 2) 3 0.294 10,632 6.5 26,022,714 1 0.384 11,940 46.6 29,224,545 South (3) 2 0.364 12,360 43.1 28,709 29,916,464 0.37 0.42 3 0.316 3,823 13.3 9,210,960 1 0.062 75,187 3.7 181,955,827 Outside (0) 2,024,529 0.06 0.07 2 0.060 129,973 6.4 315,911,598

The percentage of estimated blocks in the 1st and 2nd passes are 92.0 and 84.6% for the Lynx + Phoenix and Crux zones respectively, which is reasonable. Total percentage of blocks estimated in all passes amount to 98.5 and 98.0% for the mineralized zones respectively.

The total percentage of blocks estimated outside the mineralized envelopes amount to 10.1%.

The average grade of blocks estimated in kriging passes 1 and 2 lie within the declusterized mean range as will be described with further detail in the following section.

14.5 Validations A series of block model validations were carried out to validity of the kriging model. Global bias, drift analysis and conditional bias analysis returned satisfactory results. In addition, the author performed manual cross-sectional resource estimation check on approximately 15% of the resources estimated by Atacama. The manual check generally confirmed the SRK et al. estimation of the gold content, grade and total tonnes within ~15%.

Graphic Validation: Three cross sections were prepared in order to compare block estimates against drill hole sample grades using the same color scale. One section was chosen per zone; North, Central and South. Sections are shown in Figures 14.19 to 14.21. The results were considered to be satisfactory.

Figure 14.20 - Lynx Zone Section

Figure 14.21 - Phoenix Zone Section

Figure 14.22 - Crux Zone Section

14.6 Resource Categorization

Resource categorization consists of assigning categories of measured, indicated and inferred to the estimated blocks within the block model. Denser drilling grids will be associated to the more reliable category (measured) and very sparse drilling grids will generate blocks that will be classified as inferred.

In order to associate drilling grid configurations to the measured, indicated and inferred categories, a statistical approach was used which is compatible with the Australian JORC Code.

Idealized blocks approximating “quarterly and annual production assumption” were estimated using a single ordinary kriging calculation for different sampling grids. Gold correlograms were used to estimate the ideal blocks. The resulting kriging variances were multiplied by the population variance and then divided by the population mean squared in order to obtain relative variances. Only one loading point was assumed to obtain the final confidence limits. Results indicate that: 1 Drilling grids of 50 x 100 m or 50 x 50m are sufficient to define indicated resources 2 A drilling grid of 50 x 50 m is sufficient for defining measured resources.

The following procedure (script) was developed in order to “paint” the blocks that were estimated within a 50 x 100m drilling grid. Results were smoothed in order to avoid “islands” of indicated resources within areas that were largely classified as inferred and vice versa:  The search ellipsoid oriented with a bearing of 40°, a plunge of 30° (perpendicular to the main direction of the drillholes) was established.  The search radii of this ellipsoid were set to 105 and 55-m in the plane perpendicular to the main direction of the drillholes, and 25-m along the direction of the drillholes.  Those blocks with 2 samples located in two different drillholes within the search ellipsoid were considered to lie within a 50 X 100 m drilling grid, and therefore, were classified in the indicated category.  This categorization scheme sometimes resulted in, for example, isolated inferred blocks within a neighborhood of indicated blocks, therefore, smoothing was carried out by assigning to each block the most abundant category within its periphery (8 surrounding blocks + the block under consideration).

14.7 Specific Gravity Determination

Drill core samples from 20 Phase II drill holes were sent to the Vigalab S. A. laboratory in Copiapó for specific gravity (SG) determinations. The samples (122) comprised 10 cm long quarter split core taken at 50 m intervals from all of the drill holes (with the exception of holes CMD009 and CMD36). The SGs were determined using a standard wax coating method.

The average SG for the 122 samples tested was 2.44g/mL. The 38 samples that came from the Lynx Zone (NW) averaged 2.38 g/mL; the 41 samples that came from the Phoenix Zone (Central) averaged 2.44g/mL; and, the 43 samples that came from the Crux Zone (SE) averaged 2.49g/mL. Table 14.9 summarizes the SG results.

Table 14.9 Average Density Measurement for the Maricunga Gold Bearing Lithologies Density Av. Density Number of Lithology Range grams/mL Measurements grams/mL AND 2.61 2.52 2.69 4 BFT 1.98 1 BF1 2.30 2.14 2.48 3 BF2 2.32 2.20 2.44 13 DAP 2.51 2.30 2.66 47 BMA (PDA)+PDA 2.37 2.14 2.63 24 PDA 2.41 2.09 2.63 18 BMA2 (DAT+ PDA) 2.45 2.22 2.60 6 BMA (PDA) 2.27 2.14 2.35 6 Total Number of Density Measurements 122

The estimate of the mineral resources for the gold mineralization at Maricunga as presented in this report was prepared by Joled Nur, Senior Consultant Geostatistics for SRK. Antoni Magri, PhD Environmental Engineering, Magri Consultores; Natasha Tschischow, Senior Geologist for NTK Consultores, revised the SRK work and prepared the final report. Final approval for the geostatistics, etc. used in the Gemcom estimation was provided by Dr. Eduardo Magri. Dr. Magri is independent of SRK and Atacama and is considered a Qualified Person under NI 43-101CP guidelines by virtue of his experience, education, and registration as a Fellow in the South African Institute of Mining and Metallurgy (SAIMM).

15. MINERAL RESERVE ESTIMATES

No mineral reserve estimates have been made, as the project is not sufficiently advanced.

16. MINING METHODS

Atacama anticipates that the initial mining method that would be utilized will be open pit mining. The Maricunga Project is still in the exploration/development stage and to date no mine planning, etc., has been performed. The Phase III budget includes a provision for the initiation of preliminary economic analysis including engineering studies.

17. RECOVERY METHODS

The test work that has been conducted to date suggests that the gold recovery methods at Maricunga would be by standard heap leach methods and treatment of the resulting solution to produce gold bullion, in the event that a minable deposit were to be developed and for which there are no assurances. The bullion would be sold to a refinery.

18. PROJECT INFRASTRUCTURE

In the event that a mine was to be developed at Maricunga (for which there are no assurances), Atacama would have to provide full living facilities in close proximity to the potential mining operation.

Atacama plans to drill for water in proximity to the Project area. In the event that it is unsuccessful in generating an adequate water supply, one alternative that would have to be considered would be to buy the required water from a relatively nearby operation e.g. La Coipa, or to pipe water from the coast (an alternative that is being used by at a number of mining operations in Chile).

There are no nearby housing facilities and Atacama will need to install living facilities for its employees.

Copiapó is located approximately 70 km SE of the coastal port of Caldera to which machinery, plant facilities, trucks, mining equipment, etc., could be brought in boat.

There is adequate room within the Maricunga Property and proximities for dams, dumps, stockpiles, leach pads, tailings disposal, etc. As discussed above, there is no power at the site.

19. MARKET STUDIES AND CONTRACTS

There have been no market studies nor have sales contracts been entered into because the project is not sufficiently advanced. However, should a gold bullion product be produced it is considered that it will be easily marketable.

20. ENVIRONMENTAL STUDIES, PERMITTING OR COMMUNITY IMPACT

Under Chilean environmental regulations as they apply to mining exploration activities, Atacama has presented (COREMA – the Chilean environmental agency) with an Environmental Impact Statement which addresses the Phase III exploration program.

On December 2010, ARCADIS Chile (Arcadis, 2010) prepared an “Environmental Characterization” study of the Maricunga area. This study evaluated and reported on the Flora, Vegetation, Fauna, Historical-Archeological Heritage and Indigenous communities present in the project area, as a preliminary baseline study for future environmental impact studies.

In May 2011 (Arcadis, 2011) Atacama submitted an environmental impact statement, “Declaración de Impacto Ambiental” (DIA) to the Chilean environmental authorities in order to obtain the necessary permit to continue exploration at Cerro Maricunga. This statement (DIA) is in process of being approved by the authorities and it is anticipated that COREMA will grant its approval before the end of October 2011.

The DIA states that Atacama intends to drill 180 DDH and RC drill holes, 400 m long at Maricunga or approximately 72,000m in a period of 18 months. The drilling will be conducted over 3 – 6 months periods (November to April) from November 2011 to April 2014.

The DIA conclusions were:

 The Cerro Maricunga Project is not located near populations protected by any special laws. No indigenous communities were identified which might be affected by the project.  The project does not affect any officially protected area. The nearest protected area is the National Park “Nevado Tres Cruces”, located at least 2.3km in straight line to the project area (Figure. 20.1).  The project does not affect any protected wetlands or glaciers.  The project area has neither touristic nor scenic value which could be affected. The project area does not contain Natural Monuments, Natural Sanctuaries or Historical Monuments.  Part of the project area is located within a semi-protected (buffer zone) Priority Site for biodiversity conservation (“Sitio Prioritario Regional Nevado Tres

Cruces”). However, all of the exploration activities will be located in areas which do not contains flora, vegetation, fauna, archeology or biodiversity.

Furthermore, it is anticipated that Atacama will have no difficulty in obtaining the required work and other permits to develop and mine the property at the appropriate time, if continuing exploration of the property is successful (and for which there are no assurances). Chile is a mining oriented country and mining is both socially and politically viewed favourably.

Figure 20.1 - Cerro Maricunga Property Location Relative to National Parks

Taken from Arcadis, 2011

21. CAPITAL AND OPERATING COSTS

No capital or operating costs have been estimated to date. The Phase III budget has provisions for the initiation of such studies.

22. ECONOMIC ANALYSES

The project is not sufficiently developed for an economic analysis. The Phase III Exploration/Development budget includes funds for the initiation of an economic analysis and the development of mining and gold recovery costs.

23. ADJACENT PROPERTIES

This section has been taken partially from Lewis et al. (2011) and updated where necessary to reflect the changes in the status of the adjacent properties since that report was published.

Figure 23.1 depicts properties/projects which are adjacent to Maricunga and for which brief summaries of reserves/resources are provided below.

The author was unable to verify the following information, and the information is not necessarily indicative of the mineralization found on Atacama’s Maricunga Project that is the subject of this Technical Report.

La Pepa Project (Yamana Gold): Yamana reported the following resources, effective as December 31st 2010: 2.7 million ounces of gold contained in 149.4 million tonnes averaging 0.57 g/t Au of measured and indicated resources; and 620,000 ounces of gold contained in 37.9 million tonnes averaging 0.5 g/t Au as inferred resources (data taken from the Yamana web site www.yamana.com).

La Coipa Mine (Kinross): Kinross has published (Dec 31, 2010 - www.kinross.com) proven and probable reserves of 21.7 million tonnes at a grade of 1.34 g/t Au and 46.2 g/t Ag for 0.94 million ounces of gold and 32.9 million ounces of silver. Measured and indicated resources stand at 14.7 million tonnes grading 1.03 g/t Au and 43.8 g/t Ag for 0.49 million ounces of gold and 20.7 million ounces of silver.

Maricunga Mine (Kinross): As at Dec 31, 2010, Kinross as proven and probable reserves at the Maricunga Mine of 269 million tonnes grading 0.70 g/t Au containing 6.1 million ounces of gold. Measured and indicated resources stand at 188 million tonnes grading 0.57 g/t Au for 3.4 million ounces of gold.

Marte-Lobo Project (Kinross): Kinross has published (Dec 31, 2010 - www.kinross.com) proven and probable reserves of approximately 6.03 million ounces of gold at an average grade of 1.14 g/t gold contained in 164 million tonnes. Indicated resources of 908,000 ounces of gold contained in 34 million tonnes averaging 0.83 g/t Au.

Volcan Project (Andina Minerals): Andina has published (www.andinaminerals.com) initial proven and probable reserves of 6.6 million ounces of gold at an average grade of 0.726 g/t Au contained in 283 million tonnes for the Volcan Project. Measured and

indicated resources stand at 390 million tonnes at a grade of 0.71 g/t for an additional 8.8 million ounces of gold.

Figure 23.1 – Properties Adjacent to the Maricunga Project

Drafted by SBX

24. OTHER RELEVANT DATA AND INFORMATION

The author is not aware of any additional information which might be necessary to make the technical report understandable and not misleading.

25. INTERPRETATION AND CONCLUSIONS

Exploration at Maricunga suggests that there may be potential to develop a low grade heap leachable gold deposit which may be mined by open pit methods.

The work that was performed by Atacama during the exploration seasons for the period October, 2009 through April, 2011 has resulted in the estimation of Inferred and Indicated Mineral Resources at Maricunga. The conclusions that have been arrived at, and discussed, address:

 The work (mapping, trenching and sampling and drilling) that was completed in the Maricunga Sector.  The Indicated and Inferred Mineral Resources estimated for the Maricunga Sector.  The proposed work to take the currently defined resources to the Indicated and Measures Resources categories, and to explore for potential additional resources.  The mineralized zone, which comprises 3 distinct deposits which are developed over an approximate 2500 m interval (NW) and 300-500 m interval (NE), is considered to generally trend NW and to variably dip vertically to near vertical (SE) towards north and near vertical (SW) to at the southeastern end of the mineralization.  The gold mineralization that has been identified to date is largely hosted within generally brecciated white to black magnetite bearing quartz veinlets hosted within a variably brecciated andesitic multiple domal complex.  The mineralized zone is oxidized to vertical depths of in excess of 550 m.  An inferred resource totaling 116.7 million tonnes grading 0.52 opt Au (1.949 million oz. gold and an indicated resource totaling 92.8 tonnes grading 0.54 opt Au (1.616 million oz. gold) has been estimated utilizing a cut-off of 0.03 opt Au.

It cannot be assumed that the Inferred and Indicated Mineral Resources will be upgraded to Indicated and Measured Resources as a result of continued exploration. Furthermore, it cannot be assured that either Indicated or Inferred Mineral Resources will be converted to a “Reserve” category at such time as feasibility studies are initiated.

The author is not aware of any significant risks and uncertainties which could

reasonably be expected to affect the reliability or confidence in the exploration information, mineral resource estimates, or projected outcomes. However, a significant downward shift in the price of gold could certainly have the potential to render the project uneconomical.

To date Atacama has spent approximately US $14,400,000 on exploration at the Maricunga Project. A Phase III exploration-development program is proposed to further test and develop the resources estimated to exist at Maricunga, as well as to test the geochemical/geophysical anomalies which flank the principal mineralized zone. It is the authors’ opinions that the work that has been conducted to date at Maricunga has been properly and reliably performed.

26. RECOMMENDATIONS

It is the author’s opinion that the continued exploration and development of the Maricunga Project is warranted and that the Maricunga Project is of sufficient merit to warrant the following proposed exploration and development programs, as detailed in the Phase III Exploration and Development Program Budget for the 2011-2012 field season.

The Phase III budget which is designed to advance the definition of the mineral resources to the indicated and measured categories for a total of US $24,500,000 consists of the following: DD and RC drilling (42,000 m; 24,000 m DD and 18,000 m RC), trenching, and related activities are US $15,120,000; assaying costs (trenching and drilling) are $650,000; staff related costs, including salaries, room and board and travel are US $3,900,000; general project/property cost, including property maintenance, management and overhead are budgeted at US $360,000; continuing metallurgical testing and a preliminary economic assessment is US $550,000, water exploration and development is US$2,380,000. Atacama has included US $1,540,000 as a contingency allowance. The Chilean value-added tax (IVA) of 19%, or approximately US $4,600,000, is included in the budget where applicable.

Provided that the Phase III exploration/development program continues to generate positive results, Atacama will proceed to a Phase IV exploration and development program. The exploration portion of the program would be generally addressed at developing additional resources along strike, or beyond the limits of the currently defined mineralization. The development portion of the program would be addressed at advancing the currently defined resources to the indicated and measured categories, as well as potentially developing indicated reserves.

27. REFERENCES

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AMTEL, 2008; Report 08/35; Evaluation of gold recovery by cyanide leaching of Maricunga Hill Au ore for ATACAMA PACIFIC GOLD CORP, Cerro Maricunga Project.

AMTEL, July, 2010; Report 10/26; Progress Report on Cerro Maricunga Ore Leach Testwork.

AMTEL, Jan, 2011; Report 11/04; Evaluation of 2010 Leach Test on Cerro Maricunga Gold Ores.

Bartlett, M.G., Chapman, D., and Harris, R., 2004; Snow and the Ground Temperature Record of Climate Change: Journal of Geophysical Research, Vol. 109, pp. 10-29.

Brown, A.J., and Rayment, B, 1992; El Proyecto Aurifero de Refugio en Chile; Mining Journal

Cepeda, A., 2008; Geology and Exploration of the Cerro Maricunga Prospect, Region III, Chile; prepared on behalf of SBX Inversiones e Asesoria.

Cornejo, P., et al. 1998. Hoja Salar de Maricunga, Región de Atacama. Escala 1:100,000. Servicio Nacional de Geología y Minería, Chile. Mapas Geológicos N°7.

Cornejo, P., 2008; Petrographic study of selected samples from Co. Maricunga.

Cornejo, P., 2011; Informe preliminar descripciones petrográficas de muestras de Proyecto Cerro Maricunga. Unpublished Internal Report prepared for Minera Atacama Pacific Gold Chile Ltda. June 2011.

Diaz, S., March, 2006; Cerro Maricunga Gold Project - Exploration Update: Unpub. Internal Rpt. prepared by SBX Consultores Ltda.

Diaz, S. & Valdes, A., 2009; Ojo de Maricunga Gold Project, Atacama Region, Northern Chile; Report on Phase-I, Exploration Activities; April – May 2009; prepared for Gold Fields Chile S.A.

Diaz, S., July, 2011; Cerro Maricunga Gold Project, Atacama Region, Northern Chile; Report on Phase-2 Drill Exploration Program (September 2010 – May, 2011).

Dietrich, A., Dec., 2010; Report October-December, 2010, Ojo de Maricunga Prospect; prepared for Minera Atacama Pacific Gold Chile.

Dietrich, A., Apr., 2011; Report January-April, 2011, Reconnaissance Map at 1:25,000 scale of the Ojo de Maricunga District Area; prepared for Minera Atacama Pacific Gold Chile.

Echegaray, J., Jan.,1998; Informe Mensual Enero, 1998; unpublished internal memorandum, Quebrada Larga; Cominco Teck.

García, M., et al, 2003); Edad del Volcanismo Oligoceno-Mioceno del altiplano del norte de Chile (Formación Lupica) e Implicaciones en la Metalogénesis del Cenozoico; en Congreso Geológico Chileno (10o, Concepción, 2003).

Gardeweg P., 1996; Estudio Geológico-Volcanológico Preliminar de los Prospectos Vilanunumani y Padre Jugata; Altiplano de Arica.

Geoexploraciones Ltda, May, 2003; Volcan Copiapó Geology and Mineral Potential, Maricunga District, Chile: Unpub. Report prepared for Minera Cameco Chile Ltda.

Gold Fields Chile S.A. Exploration and Development; 30 April, 2009; Monthly Report – April, 2009, SBX Projects.

Gold Fields Chile S.A.; 30 June, 2009; Monthly Report – May, 2009, SBX Projects.

Gold Fields Chile S.A.; 9 July, 2009; Monthly Report – June, 2009, SBX Projects.

Gold Fields Chile S.A.; 6 August, 2009; Monthly Report – July, 2009, SBX Projects.

Gómez, C; 2008; Informe Geológico Preliminar de las Propiedades Recobradas Azufrera Volcan Juncalito, Tercera Región, Chile.

Hedenquist, J.W., 2010; Observations on drill core from CMDD001, 004, 008. Ojo de Maricunga, Region III, Region de Atacama, Chile; Report prepared for Atacama Pacific Gold.

Jordan, J., April, 2008; Geophysical Report on the Induced Polarization and Ground Magnetic Surveys conducted at the Maricunga Project Region III, Chile on behalf of SBX Consultores.

Jordan, J., May, 2009; Geophysical Report on the Induced Polarization Survey conducted at the Maricunga Project Region III, Chile on behalf of Gold Fields Chile S.A.

Jordan, J., Jan, 2011; Geophysical Report on the Induced Polarization Survey conducted at the Maricunga Project Region III, Chile on behalf of Gold Fields Chile S.A.

Mpodozis, C., et al, 1991; La Zona del Nevado Jotabeche, Laguna del Negro Francisco: Evolución teutónica y volcánica de la extremidad meridional del Altiplano Chileno; VI Congreso Geológico de Chile, Actas pp. 91-95; Viña del Mar.

Mpodozis, C., et al, 1995; La Franja de Maricunga: Síntesis de la Evolución del Frente Volcánico Oligoceno-Mioceno de la Zona Sur de los Andes Centrales; Rev. Geol. De Chile, Vol. 21.

Moscoso, D., et al, 1993; El Complejo Volcánico Cerros Bravos, Región de Maricunga, Chile: Geología, Alteración Hidrotermal, y Mineralización; in Investigaciones de Metales Preciosos en el Complejo Volcánico Neógeno-Cuaternario de Los Andes Centrales; GEOBOL (Bolivia), SERNAGEOMIN (Chile), INGEMET (Perú), USGS.

Mulja, T., March, 1986; Hydrothermal alteration, gold distribution and geochronology of epithermal gold mineralization in the Volcan Copiapó complex: Multinational Publication No. 2; 2001, Metallogenic Map of the Border Region between Argentina, Bolivia, Chile and Peru (14S-28S); 1:1,000,000.

Multinational Publication No. 2; 2001, Metallogenic Map of the Border Region between Argentina, Bolivia, Chile and Peru (14S-28S); 1:1,000,000.

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Sillitoe, R.H., McKee, E.H., and Vila, T., 1991; Reconnaissance K-Ar geochronology of the Maricunga Gold Silver Belt, Northern Chile: Economic Geology, Vol. 86, No. 6 p 1261-1270.

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86, No. 6.

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To accompany the report entitled

“Phase II Ojo de Agua Este Sector of the Volcan Gold Project, Region III, Chile”. th 28.0 CERTIFICATE OF AUTHOR October 7 , 2011

I, Michael Easdon, do hereby certify that:

1. I am a consulting geologist to the mining and mineral exploration industry with an office at Alcantara 1128, Depto. 905, Las Condes, Santiago, Chile; Tel: 5697-897-6872; Email: [email protected].

2. I obtained a Bachelor of Science degree in Geology in 1960 and a Master of Science degree in Geology in 1970 from McGill University in Montreal, Quebec, Canada.

3. I am Registered Professional Geologist (No. 243) in good standing with the State of Oregon, USA and have been continuously practicing my profession as an exploration geologist (exploration for and development of mining properties) since 1965.

4. I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 43-101”) and certify that by reason of my education, affiliation with a professional association (as defined in NI43-101) and past relevant work experience, I fulfill the requirement of “qualified person” for purposes of NI 43-101. My relevant experience for the purpose of the Technical Report is:

 Exploration Manager (Western US), Precious Metals Exploration, Lacana Mining Inc., 1978-1987; this work included the development (including reserve estimations) of 2 gold mines.  Consultant, Precious Metals Exploration, including review and preparation of resources estimations, 1987-1993.  General Manager, Precious Metals Exploration, Argentina, Canyon Resources Corp, 1993-1995.  General Manager, Copper-Gold and Precious Metals Exploration, Chile, Minera Newcrest Chile Limitada, 2007-2008.  Consultant, Precious Metals Exploration, including the review and preparation of resources estimations - 1995-2007, and June 2008 - present; including the preparation and/or participation in various N43-101 Technical Reports.

5. This report is based upon a review of proprietary, published and printed reports and maps on the subject property and surrounding area and on a site visits made 12th Jan., 2008, 7th April, 2010 and 30th March, 2011, and that I am responsible for the report in its entirety.

6. As at the effective date of this report and certificate (October 7th, 2011) to the best of my knowledge, information and belief, the technical report contains all of the scientific and technical information that is required to be disclosed to make the technical report not misleading.

7. I am independent of the issuer as set out in Section 1.5 of the Canadian National Instrument 43-101 “Standards of Disclosure for Mineral Projects”.

9. I, or any affiliated entity of mine, has not earned the majority of our income during the preceding three years from Atacama Pacific Gold Corporation, or any associated or affiliated companies.

10. I have no interest, nor have had, any prior interest, in the subject property, either directly or indirectly.

11. I, or any affiliated entity of mine, do not own, directly or indirectly, nor expect to receive, any interest in the properties or securities of Atacama or any associated or affiliated companies.

12. I have read National Instrument 43-101 Form 43-101F1, and that this Technical Report has been prepared in compliance with the foregoing Instrument and Form.

13. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication by them, including electronic publication in the public company files on their websites accessible to the public of the Technical Report.

Dated this Friday, October 7th, 2011, in Santiago, Chile.

______Michael Easdon, M.Sc., P.Geol.

CONSENT OF AUTHOR

TO: BRITISH COLUMBIA, ALBERTA AND ONTARIO SECURITIES COMMISSION; THE REGISTRAR OF SECURITIES, GOVERNMENT OF THE YUKON TERRITORY; AND THE TSX VENTURE EXCHANGE

I, Michael Easdon, do hereby consent to the filing, with the regulatory authorities referred to above, of the technical report titled ” Cerro Maricunga Gold Project, Region III, Chile” dated 7th day of October, 2011.

______Michael Easdon, M.Sc., P.Geol.

Dated this 7th day of October, 2011.