Atacama Pacific Gold Corporation

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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

November 9, 2012

Prepared By: Magri Consultores Limitada Dr. Eduardo Magri

TABLE OF CONTENTS 1.0 SUMMARY ...... 1 2.0 INTRODUCTION ...... 4 3.0 RELIANCE ON OTHER EXPERTS ...... 5 4.0 PROPERTY DESCRIPTION AND LOCATION ...... 7 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ...... 11 6.0 HISTORY ...... 12 7.0 GEOLOGICAL SETTING AND MINERALIZATION ...... 13 7.1 Property Geology ...... 14 8.0 DEPOSIT TYPE ...... 28 9.0 EXPLORATION ...... 28 10.0 DRILLING ...... 29 11.0 SAMPLE PREPARATION, ANALYSES AND SECURITY ...... 33 12.0 DATA VERIFICATION ...... 37 13.0 MINERAL PROCESSING AND METALLURGICAL TESTING ...... 38 13.1 Recent Metallurgical Test Results – October 2011 to October 2012 ...... 39 13.2 Ball Mill Grindability Tests ...... 43 14.0 MINERAL RESOURCE ESTIMATES...... 44 14.1 Introduction and Scope of Work ...... 44 14.2 Description of Modeling Procedure ...... 44 14.3 Available Data, QA‐QC and Twin Hole Analyses ...... 46 14.4 Exploratory Data Analysis ‐ EDA ...... 101 14.5 Variography ...... 113 14.6 Resource Estimation ...... 116 14.7 Validations ...... 118 14.8 Specific Gravity Model ...... 129 14.9 Resource Categorization ...... 130 14.10 Resource Tabulation ...... 136 15.0 MINERAL RESERVE ESTIMATES ...... 138 16.0 MINING METHODS ...... 138 17.0 RECOVERY METHODS ...... 138 18.0 PROJECT INFRASTRUCTURE ...... 138 19.0 MARKET STUDIES AND CONTRACTS ...... 138 20.0 ENVIRONMENTAL STUDIES, PERMITTING OR COMMUNITY IMPACT ...... 139 21.0 CAPITAL AND OPERATING COSTS ...... 140

22.0 ECONOMIC ANALYSES ...... 140 23.0 ADJACENT PROPERTIES ...... 140 24.0 OTHER RELEVANT DATA AND INFORMATION ...... 143 25.0 INTERPRETATION AND CONCLUSIONS ...... 143 27.0 REFERENCES ...... 144 28.0 CERTIFICATE OF AUTHOR ...... 147

FIGURES

Figure 1.1 Location Map of the Maricunga Project and Mines located in I to IV Regions – Chile 1 Figure 4.1 Detailed Location Map of the Cerro Maricunga Gold Project ...... 2 Figure 4.2 Cerro Maricunga Concession Map ...... 9 Figure 7.1 Regional Geology and Deposits of the Maricunga Belt ...... 16 Figure 7.2 Maricunga Property Geological Map ...... 17 Figure 7.3 Legend for Figure 7.2 ...... 17 Figure 7.4 Geology of the Mineralized Zone at Maricunga ...... 18 Figure 7.5 Schematic Schematic Cross Section Looking NS ‐ Cerro Maricunga Gold Mineralization Host Rocks and Structures...... 19 Figure 10.1 Maricunga Project Drill Hole Plan – Phases I to III ...... 30 Figure 10.2 Cross Section 1550 NW – Phoenix Zone ...... 31 Figure 10.3 Cross Section 550 NW – Crux Zone ...... 32 Figure 11.1 Sample Preparation Protocol – RC and QA‐QC ...... 34 Figure 11.2 Sample Preparation Protocol – DDH and QA‐QC ...... 35 Figure 14.2.1 View of the Maricunga Mineralized Zones ...... 45 Figure 14.3.1 Results for all RC field duplicates – Au ...... 51 Figure 14.3.2 Results for the RC field duplicates ‐ Au ≥ 0.1 ppm ...... 52 Figure 14.3.2 Results for DDH coarse duplicates ‐ Au ...... 53 Figure 14.3.4 Results for the DDH coarse duplicates ‐ Au ≥ 0.1 ppm ...... 54 Figure 14.3.5 Results for all pulp duplicates – Au ...... 55 Figure 14.3.6 Results for the pulp duplicates ‐ Au ≥ 0.1 ppm ...... 56 Figure 14.3.7 Results for all Standards ...... 57 Figure 14.3.8 Control chart for Standard G303‐8 ...... 58 Figure 14.3.9 Control chart for Standard G909‐7 ...... 58 Figure 14.3.10 Control chart for Standard G907‐2 ...... 59 Figure 14.3.11 Control chart for Standard G907‐7 ...... 59 Figure 14.3.12 Gold Grade Values per Lot – In House Blanks ...... 61 Figure 14.3.13 Time Sequenced Au Values – In House Blanks ...... 61

Figure 14.3.14 Geostats Blank Certified Material ‐ Au ...... 63 Figure 14.3.15 Trend Plots ‐ Au Grades ...... 67 Figure 14.3.16 Scatter, Q‐Q and Relative Difference Plots ‐ Au ...... 68 Figure 14.3.17 Trend Plots ‐ Au Grades ...... 70 Figure 14.3.18 Scatter, Q‐Q and Relative Difference Plots ‐ Au ...... 71 Figure 14.3.19 Trend Plots ‐ Au Grades ...... 73 Figure 14.3.20 Scatter, Q‐Q and Relative Difference Plots ‐ Au ...... 74 Figure 14.3.21 Trend Plots ‐ Au Grades ...... 76 Figure 14.3.22 Scatter, Q‐Q and Relative Difference Plots ‐ Au ...... 77 Figure 14.3.23 Trend Plots ‐ Au Grades ...... 79 Figure 14.3.24 Scatter, Q‐Q and Relative Difference Plots ‐ Au ...... 80 Figure 14.3.25 Trend Plots ‐ Au Grades ...... 82 Figure 14.3.26 Scatter, Q‐Q and Relative Difference Plots ‐ Au ...... 83 Figure 14.3.27 Trend Plots ‐ Au Grades ...... 85 Figure 14.3.28 Scatter, Q‐Q and Relative Difference Plots ‐ Au ...... 86 Figure 14.3.29 Trend Plots ‐ Au Grades ...... 88 Figure 14.3.30 Scatter, Q‐Q and Relative Difference Plots ‐ Au ...... 89 Figure 14.3.31 Trend Plots ‐ Au Grades ...... 91 Figure 14.3.32 Scatter, Q‐Q and Relative Difference Plots ‐ Au ...... 92 Figure 14.3.33 Trend Plots ‐ Au Grades ...... 94 Figure 14.3.34 Scatter, Q‐Q and Relative Difference Plots ‐ Au ...... 95 Figure 14.3.35 Sorted RC Au Grades, DDH Au Grades and DDH 10‐term Moving Average ...... 97 Figure 14.3.36 Scatter, Q‐Q and Relative Difference Plots – Au ...... 98 Figure 14.3.37 Twin Hole Experimental RC and DDH Variograms ...... 100 Figure 14.4.1 Sample Length vs. Gold Grades ...... 102 Figure 14.4.2 Equal weighted histograms for gold zones Lynx, Phoenix, Pollux and Crux ...... 104 Figure 14.4.3 Equal weighted histograms for the North zone and all gold envelopes ...... 105 Figure 14.4.4 Equal weighted histogram for all samples outside the mineral envelopes ...... 106 Figure 14.4.5 Gold grades Log‐probability plots for gold zones Lynx, Phoenix, Pollux and Crux .... 107 Figure 14.4.6 Gold grades Log‐probability plots for the North zone and all mineral envelopes .... 108 Figure 14.4.7 Gold grades Log‐probability plot for all samples outside the mineral envelopes ...... 109 Figure 14.4.8 Cell Declustering for Lynx, Phoenix, Pollux and Crux zones separately ...... 110 Figure 14.4.9 Cell declustering for the northern and all gold zones combined ...... 111 Figure 14.4.10 Cell declustering for all samples lying outside the mineralized envelopes ...... 112 Figure 14.5.1 Lynx‐Phoenix‐Pollux (northern zone) correlogram model ...... 114 Figure 14.5.2 Crux (southern zone) correlogram model ...... 114 Figure 15.5.3 Correlogram model for low grade outside mineralized envelopes ...... 115 Figure 14.7.1 Au Global Bias ...... 120 Figure 14.7.2 Slice Rotation according to Block Model ...... 121

iii

Figure 14.7.3 Drift Analysis – Whole deposit (Elevation) ...... 121 Figure 14.7.4 Drift Analysis – Whole deposit (Along X) ...... 122 Figure 14.7.5 Drift Analysis – Whole deposit (Along Y) ...... 122 Figure 14.7.6 Drift Analysis – Northern Zone (Elevation) ...... 123 Figure 14.7.7 Drift Analysis – Northern Zone (Along X) ...... 123 Figure 14.7.8 Drift Analysis – Northern Zone (Along Y) ...... 124 Figure 14.7.9 Drift Analysis –Southern Zone (Elevation) ...... 124 Figure 14.7.10 Drift Analysis –Southern Zone (Along X) ...... 125 Figure 14.7.11 Drift Analysis –Southern Zone (Along Y) ...... 125 Figure 14.7.12 View of Cross Sections on Plan View 4650 ...... 126 Figure 14.7.13 Lynx Cross Sections (1250) ...... 127 Figure 14.7.14 Phoenix Cross Section (1550) ...... 127 Figure 14.7.15 Pollux Cross Section (1050) ...... 128 Figure 14.7.16 Crux Cross Section (550) ...... 128 Figure 14.8.1 Distribution of Specific Gravity Values (Lynx=1, Phoenix=2, Crux=3) ...... 129 Figure 14.9.1 50 x 100m Drilling Grid for 60,000 Tonnes / Day‐Plan View ...... 131 Figure 14.9.2 50 x 100m Drilling Grid for 60,000 Tonnes / Day – Vertical View ...... 132 Figure 14.9.3 Relative Error v/s Drilling Grid – Indicated Resources ...... 133 Figure 14.9.4 Relative Error v/s Drilling Grid – Measured Resources ...... 133 Figure 14.9.5 Lynx Resource Categorization Cross Section (2150) ...... 135 Figure 14.9.6 Phoenix Resource Categorization Cross Section (1550) ...... 135 Figure 14.9.7 Phoenix plus Pollux Resource Categorization Cross Section (1150) ...... 136 Figure 14.9.8 Crux Resource Categorization Cross Section (550) ...... 136 Figure 20.1 Cerro Maricunga Property Location Relative to National Parks ...... 140 Figure 23.1 Properties Adjacent to the Maricunga Project ...... 142

TABLE

Table 1.1 Cerro Maricunga 2012‐2013 Phase IV Exploration Budget ...... 2 Table 1.2 Summary of Drilling Stages ...... 3 Table 1.3 2012 Cerro Maricunga Geological Resource Estimate ...... 4 Table 4.1 Maricunga Mining Concessions ...... 10 Table 4.2 Maricunga Concessions ...... 10 Table 10.1 Cerro Maricunga Drilling Phases – Meters Drilled & Meters Assayed ...... 29 Table 13.1 Summary of Bottle / Drum Roll Test Results ‐ 2008 thru 2011 ...... 38 Table 13.2 Summary of Column Leach Test Results ...... 39 Table 13.3 PLENGE Column Test Results ...... 40 Table 13.4 PLENGE Bottle Roll Test Results ...... 41

Table 13.5 AMTEL Bottle Roll Test Results ...... 41 Table 13.6 KCA Column Test Results ...... 42 Table 14.3.1 Maricunga Drilling by Zone – Meters Drilled & Meters Assayed ...... 46 Table 14.3.2 Maricunga – Non Assayed Intervals due to Poor Recovery ...... 47 Table 14.3.3 Maricunga Database Quality Assessment and Quality Control ...... 48 Table 14.3.4 Summary of QA‐QC results for duplicate samples – Au ...... 49 Table 14.3.5 Summary of QA‐QC results for duplicate samples ≥0.1 ppm‐Au ...... 50 Table 14.3.6 QA‐QC Criteria and Results for Au Duplicates ...... 50 Table 14.3.7 Summary for Standard Samples ...... 57 Table 14.3.8 Blanks used for quality control and assurance ...... 60 Table 14.3.9 List of Twinned Holes – Maricunga ...... 64 Table 14.3.10 Sample Pairs with Distances ≤ 10.0‐m & Sample Pairs within Solids ...... 65 Table 14.3.11 Comparison ‐ Average Au Grades: Pairs Maximum Distance ≤ 10‐m & Pairs Maximum Distance ≤ 10‐m within Solids ...... 66 Table 14.3.12 List of Twinned Holes – Maricunga ...... 64 Table 14.3.13 Summary of Data CMD198 – CMR089 ...... 69 Table 14.3.14 Summary of Data CMD010 – CMR018 ...... 72 Table 14.3.15 Summary of Data CMD092 – CMR002 ...... 75 Table 14.3.16 Summary of Data CMD093 – CMR041 ...... 78 Table 14.3.17 Summary of Data CMD099 – CMR030 ...... 81 Table 14.3.18 Summary of Data CMD178 – CMR045 ...... 84 Table 14.3.19 Summary of Data CMD192 – CMR097 ...... 84 Table 14.3.20 Summary of Data CMD193 – CMR129 ...... 90 Table 14.3.21 Summary of Data CMD196 – CMR098 ...... 93 Table 14.3.21 Summary of Data ALL DDH – ALL RC ...... 97 Table 14.4.1 Basic Sample Statistics ...... 103 Table 14.5.1 Cerro Maricunga Correlogram calculation parameters ...... 113 Table 14.5.2 Cerro Maricunga Correlogram calculation parameters ...... 113 Table 14.6.1 Gold Estimation Plan parameters ...... 117 Table 14.6.2 Estimated Block Model Statistics ...... 118 Table 14.7.1 Global Bias Validation ...... 119 Table 14.7.2 Colour Scheme Used for Cross Sections ...... 126 Table 14.8.1 Statistics – Specific Gravity Determinations ...... 129 Table 14.8.2 Specific Gravity Estimation Plan ...... 130 Table 14.9.1 Additional Data used for Resource Categorization ...... 131 Table 14.9.2 Kriging Errors for 50 x 50 and 50 x 100 grids ...... 132 Table 14.9.3 Kriging Estimation Variances for 50 x 50 and 50 x 100 grids ...... 134 Table 14.10.1 Maricunga Project Geological Resources ‐ September 2012 ...... 137

1.0 SUMMARY Mr. Carl Hansen, President and CEO of Atacama Pacific Gold Corporation (“Atacama”) has retained Dr. Eduardo Magri 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” or “Cerro 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 November 9, 2011 updates the October 7, 2011 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).

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. 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.

Figure 1.1 Location Map of the Maricunga Project and Mines located in I to IV Regions - Chile

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 hectares) 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.

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.

Atacama has prepared a drilling and exploration budget for the Maricunga Project that provides for fieldwork, management and administration to September 2013. The Phase IV exploration program is budgeted to total US $22,800,000 as summarized in Table 1.1. The Phase IV program budget comprises a total of 20,000 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 2012‐2013 Phase IV Exploration Budget

Total ITEM (millions US$) Drilling / Trenching 9.0 Personnel 2.6 Assaying 0.5 General Project / Property 4.7 Metallurgical‐Engineering‐Environmental Studies 2.6 Water Exploration Activities 2.4 Contingencies 1.0 Exploration Total 22.8

Regional geochemical sampling ca 1980 reportedly returned anomalous gold values in the area of the eroded Ojo de Maricunga strato‐volcano. 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.

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 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 parts per billion “ppb” Au) mineralization in breccias appears to be associated with breccia clasts containing theveinlets as well as finely milled vein clasts.

The work that Atacama has conducted at Maricunga (trenching, mapping, geophysics) and 3 stages of drilling, summarized in Table 1.2, has been designed to explore for gold mineralization and to initiate and advance the development of the mineral resources, as indicated in Table 1.3.

Table 1.2 Summary Drilling Stages

N° RC + DDH‐Meters N° RC‐Meters N° DDH‐Meters PHASE YEARS Holes Drilled Recovered Holes Drilled Recovered Holes Drilled Recovered

I 2010 8 2,141.90 2141.90 5 1,422.00 1,422.00 3 719.90 719.90

II 2010‐2011 82 31,450.57 31,444.57 60 24,570.00 24,564.00 22 6,880.57 6,880.57

III 2011‐2012 130 45,975.66 45,945.66 92 31,614.00 31,584.00 38 14,361.66 14,361.66

TOTAL 220 79,568.13 79,532.13 157 57,606.00 57,570.00 63 21,962.13 21,962.13

Using a cut‐off grade of 0.3 g/t Au, a resource estimate of 168.3 million tonnes at a grade 0.50 g/t Au (2.667 million ounces gold) in the measured and indicated categories and 120.7 million tonnes grading 0.47 g/t Au in inferred resource has been established. Table 1.3 summarizes the resource estimate at cut‐off grades ranging between 0.0 and 0.8 g/t Au.

Table 1.3 2012 Cerro Maricunga Geological Resource Estimate

Cut‐Off MEASURED INDICATED M & I INFERRED

Au g/t Au g/t Mtonnes Au g/t Mtonnes Au g/t Mtonnes Moz Au g/t Mtonnes Moz 0.00 0.41 66.627 0.40 202.619 0.40 269.246 3.464 0.33 271.613 2.908 0.10 0.41 66.576 0.40 202.567 0.40 269.143 3.464 0.33 271.275 2.907 0.20 0.44 60.411 0.41 187.526 0.42 247.937 3.344 0.36 226.338 2.654 0.30 0.53 40.733 0.50 123.141 0.51 163.874 2.667 0.47 120.738 1.810 0.40 0.64 24.535 0.61 71.241 0.62 95.776 1.912 0.60 57.832 1.118 0.50 0.77 15.140 0.72 42.778 0.74 57.919 1.370 0.73 32.286 0.754 0.60 0.88 9.935 0.84 26.324 0.85 36.259 0.990 0.84 19.737 0.535 0.70 1.00 6.758 0.95 16.449 0.96 23.208 0.719 0.95 12.845 0.392 0.80 1.12 4.560 1.07 10.503 1.08 15.063 0.524 1.06 8.134 0.278

A Measured Resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geologic and grade continuity.

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.

2.0 INTRODUCTION Mr. Carl Hansen, President and CEO of Atacama Pacific Gold Corporation (“Atacama”) has retained Eduardo Magri 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 in support 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 September 25, 2012 reported a significant resource estimate for Maricunga as noted in Table 1.3.

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.

Dr. Eduardo Magri, PhD in Mining Engineering and a Qualified Person (Fellow of the South African Institute of Mining and Metallurgy with over 30 years of relevant experience), is an independent consultant in sampling and resource estimation 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 – 2012 exploration period.

The author of this report, Dr. Magri, 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.

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 has actively participated in the implementation of sampling and Quality Control/Quality Assurance (“QA/QC”) of the Maricunga Project, as well as in the current and previous geological resource estimations and categorization of mineral resources. The author also recently visited and reviewed the storage and sample preparation facility in Copiapó, therefore is fully confident that the data acquisition procedures 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 InversionesLtda 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 Pacific (Geologists; Alonso Cepeda and Víctor Estay), NCL (Mining Engineers; Antonio Couble and Pedro Elissetche) and NTK Consultores (Geologist Natasha Tschischow).

As stated earlier, the author certifies that he has actively participated in the following activities: the design and implementation of the sample preparation protocol and QA‐QC system; analyses of QA‐QC and twin‐hole data; geostatistical analyses and geological resource estimation and categorization. Not being a professional geologist, the author has relied entirely on other experts in all matters other than the ones mentioned in this paragraph.

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 the author, provided detailed reports with supporting statistics.

The author has relied upon relevant information presented by Mr. Michael Easdon (P Geol. and a Qualified Person) in 43‐101 compliant technical reports appropriately filed (www.sedar.com) on August 20, 2010 and October 7, 2011. The author believes there is a reasonable basis to rely upon, previous contributions made by Mr. Easdon as all of the information presented in the reports are verifiable. However, the author does not accept any responsibility for errors pertaining to this information.

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 from 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 been informed by Atacama that, to the best of its 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.

The author as relied on the metallurgical test work data provided by Atacama. The testing was completed by established mineral processing laboratories: Kappes, Cassidy and Associates (“KCA”), Reno, Nevada; Laboratorio Plenge, Lima, Peru; and, AMTEL (Advanced Mineral Technology Laboratory Ltd), London, Canada. The author accepts no responsibility for any errors pertaining to this information.

An environmental impact statement, “Declaración de Impacto Ambiental” (“DIA”), incorporating the Arcadis Chile study, was approved approved by Resolution Number 232 by the Environmental Evaluation Commission of the III Region, Republic of Chile. The permit, which required the approval of various administrative bodies of the State, certifies that the Cerro Maricunga environmental declaration complies with the environmental regulations and formalizes the conditions for further advanced stage exploration activities. The author has relied on Atacama’s disclosure regarding the issuance of the DIA.

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 deposit is 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 N‐7,013,000 and E‐479,000 (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 ‐ 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 25 km to reach the project site (Fig. 4.1). Maricunga is located 117 km 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 4.2. 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, over‐all the concessions 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 4.1 Maricunga Mining Concessions Concessions 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 4 1/10 300 Mary 5 1/10 200 Mary 6 1/10 300 Mary 7 1/10 200 Mary 8 1/10 300 Mary 9 1/10 100 Mary 10 1/10 300 Mary Segunda 2 1/10 100 Mary Segunda 3 1/10 100 Total Mining Concession Area 3,110

Table 4.2 Maricunga Concessions Concession Hectares Concession Hectares Concession Hectares Ternero A 300 Mary 11 300 Monica 1 200 Ternero B 300 Mary 12 300 Monica 2 200 Ternero C 300 Cerro 1 300 Monica 3 300 Ternero D 300 Cerro 2 300 Monica 4 200 Ternero E 300 Cerro 3 300 Monica 5 200 Elionara 1 200 Cerro 4 300 Monica 6 200 Elionara 2 200 Cerro 5 300 Monica 7 100 Elionara 3 200 Cerro 6 300 Monica 8 200 Elionara 4 300 Elionora Segunda 4 200 Monica 9 300 Elionara 5 300 Elionora Segunda 6 300 Monica 10 300 Elionara 6 300 Elionora Segunda 8 300 Monica 11 300 Elionara 7 300 Elionora Segunda 10 300 Cerro 7 200 Elionara 7 300 Elionora Segunda 12 300 Cerro 8 200 Elionara 9 300 Elionora Segunda 14 300 Cerro 9 200 Elionara 10 300 Elionora Segunda 16 300 Cerro Norte 6 200 Elionara 11 300 Elionora Segunda 18 300 Mary Tercera 1 300 Elionara 12 300 Elionora Segunda A 300 Mary Tercera 2 300 Elionara 13 300 Elionora Segunda B 300 Mary Tercera 3 300 Elionara 14 300 Elionora Segunda C 300 Mary Tercera 4 200 Elionara 15 300 Elionora Segunda D 300 Mary Tercera 5 100 Elionara 16 300 Elionora Segunda E 300 Mantogrande A 200 Elionara 17 300 Cerro Norte 1 200 Santa Teresa A 200 Elionara 18 300 Cerro Norte 2 300 Cerro Maricunga 1 1/30 170 Cerro Maricunga 23 200 Cerro Norte 3 200 Cerro Maricunga 2 1/30 240 Cerro Maricunga 24 200 Cerro Norte 4 200 Cerro Maricunga 3 1/30 200 Cerro Maricunga 25 300 Cerro Sugunda 1 300 Cerro Maricunga 13 1/30 100 Cerro Maricunga 26 300 Cerro Sugunda 2 300 Cerro Maricunga 14 1/30 100 Mary Segunda 1 300 Cerro Sugunda 3 300 Cerro Maricunga 20 1/30 200 Mary Segunda 2 300 Cerro Sugunda 4 300 Cerro Maricunga 21 1/30 200 Mary Segunda 3 200 Cerro Sugunda 5 300 Mary 4 1/10 300 Mary Segunda 4 200 Cerro Sugunda 6 300 Mary 5 1/10 200 Mary Segunda 5 300 Cerro Sugunda 23 200 Mary 6 1/10 300 Mary Segunda 6 300 Cerro Sugunda 24 200 Mary 7 1/10 200 Mary Segunda 7 300 Cerro Sugunda 25 300 Mary 8 1/10 300 Mary Segunda 8 300 Cerro Sugunda 26 300 Mary 9 1/10 100 Mary Segunda 9 300 ‐ ‐Mary 10 1/10 300 Mary Segunda 10 300 ‐ ‐Mary Segunda 2 1/10 100 ‐ ‐ ‐ ‐ Mary Segunda 3 1/10 100

Per data provided by Atacama, the total cost to maintain the Maricunga concessions, as they are currently constituted, for the period 2011‐2012 was in the order of $130,000 based on the September, 2011 UTM and the average US dollar exchange rate as of 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.

The following is taken from Atacama’s 43‐101 Technical Report issued October 7, 2011: “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 “NevadoTres 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 (“SitioPrioritario Regional NevadoTres 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 above sea level. 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 188,000 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 andexperienced 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 material 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 previous drilling campaign and will likely do the same for the upcoming Phase IV program. Atacama has made application for water concessions and anticipates conducting exploration for water during the 2012‐2013 field season.

6.0 HISTORY The history noted below is summarized from the M. Easdon technical reports filed by Atacama on August 20, 2010 and October 7, 2011.

“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”. “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.”

Atacama has not found any historical mineral resource or mineral reserve estimates reported nor has Atacama noted any report of historical production from the property.

7.0 GEOLOGICAL SETTING AND MINERALIZATION Regional and Local Geology: The Atacama’s Technical Reports, filed on August 20, 2010 and October 7, 2011, describes the understanding of the local and property geology at Maricunga.

The Maricunga property 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 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).

The drilling that has been performed to date has defined 4 essentially contiguous mineralized zones, Lynx, Phoenix, Crux and Pollux zones which comprise the entire resource estimate at Maricunga. The Pollux Zone has been slightly displaced to the NE of the main mineralized trend. The mineralization has been traced by drilling over a strike interval 2,300 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.

The following Section 7.1 which summarizes the property geology including gold mineralization is extracted from the October 7, 2011 43‐101 Technical Report filed on www.sedar.com.

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 PircasFms (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. Theseunits 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 un‐altered, 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 15m 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 flowmaterial 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 broadpropyllitic 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 NEstrike faults, the northern block has a width of approximately 400m, the central block has a width of approximately 600m, and, the southern block has a width of approximately 700m.”

“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

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 7.3 - Legend for Figure 7.2

Figure 7.4 Geology of the Mineralized Zone at Maricunga

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

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; andMS‐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 specifiedin detail by mapping exercises at smaller scale in conjunction with petrographic studies. The DAP porphyriesform 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 andBreccia Complex (PBxC) but appears not to be mineralized by BBVs or magnetite‐chloritebreccias 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) phreatomagmaticbreccias 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 paleleucocraticand 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 phreatomagmaticbreccias. 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 juvenileclasts at variable proportions. This unit is consideredto 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 phreatomagmaticbreccias 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 anon‐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 clastsbeing 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 areoccasionally 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 angularclasts of serial clast‐size distribution set in a finer‐grained serial matrix are observed frequently with widths from10s of centimeters to several meters.

These might represent pebble dikes, however, their frequently observed proximity to fault planes suggests thattheir 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 thetuffaceous 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‐hedenbergiteblastesis 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

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 epiclasticandesitic 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 phreatomagmaticbreccias 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 30m. 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

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‐related 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

During years 2008‐2010 the Maricunga deposit and surroundings were extensively mapped and sampled (rock chips and trenches). Local mapping, at a scale of 1:2,500, centered in the deposit, was carried out by A. Hodgkin. Surroundings, totaling 163‐km2, were mapped at scales of 1:10,000 and 1:25,000 by Dr. A. Dietrich. Continuous petrographical studies have been performed by Dr. P. Cornejoon approximately 50 samples taken from the field and drill core.

Exploration work, other than drilling and trenching were not carried out during 2011‐2012 seasons. Details on prior exploration activities are detailed in the Atacama Technical Reports dated August 20, 2010 and October 7, 2011.

10.0 DRILLING To date, Atacama has bored a total of 220 drill holes, which have led to the definition of four major gold mineralized zones aligned along a 2.3‐km NW‐SE trend. From north to south the zones are: Lynx, Phoenix, Pollux and Crux. Details on the amount of drilling carried out in each zone are shown in Table 10.1.

Table 10.1 Cerro Maricunga Drilling Phases – Meters Drilled & Meters Assayed

RC‐Meters DDH‐Meters RC + DDH‐Meters ZONE PHASE N° N° N° Drilled Assayed Drilled Assayed Drilled Assayed Holes Holes Holes I 3 852.00 852.00 1 217.00 217.00 4 1069.00 1069.00

II 3 1,346.00 1,346.00 7 2,299.25 2,299.25 10 3,645.25 3,645.25 CRUX III 39 12,730.00 12,728.00 9 3,502.82 3,502.82 48 16,232.82 16,230.82

Sub‐Total 45 14,928.00 14,926.00 17 6,019.07 6,019.07 62 20,947.07 20,945.07

I 2 570.00 570.00 1 321.05 321.05 3 891.05 891.05 PHOENIX II 41 16,490.00 16,482.00 7 2,567.92 2,567.92 48 19,057.92 19,049.92 & POLLUX III 39 13,972.00 13,942.00 20 7,812.49 7,812.49 59 21,784.49 21,754.49

Sub‐Total 82 31,032.00 30,994.00 28 10,701.46 10,701.46 110 41,733.46 41,695.46

I 0 0.00 0.00 1 181.85 181.85 1 181.85 181.85

II 16 6,734.00 6,734.00 8 2,384.30 2,384.30 24 9,118.30 9,118.30 LYNX III 14 4,912.00 4,912.00 9 3,046.35 3,046.35 23 7,958.35 7,958.35

Sub‐Total 30 11,646.00 11,646.00 18 5,612.50 5,612.50 48 17,258.50 17,258.50

I 5 1,422.00 1,422.00 3 719.90 719.90 8 2141.90 2141.90

II 60 24,570.00 24,562.00 22 7,251.47 7,251.47 82 31,821.47 31,813.47 ALL ZONES III 92 31,614.00 31,582.00 38 14,361.66 14,361.66 130 45,975.66 45,943.66

TOTAL 157 57,606.00 57,566.00 63 22,333.03 22,333.03 220 79,939.03 79,899.03

Figure 10.1 Maricunga Project Drill Hole Plan – Phases I to III

Figure 10.2 Cross Section 1550 NW – Phoenix Zone

Figure 10.3 Cross Section 550 NW – Crux Zone

11.0 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 weekly to the Atacama Paipote core logging and core/cuttings storage facility.

Reverse Circulation Holes  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. At the RC drill rig, a 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. Once the holes are completed, samples are transported to the core shed located in Paipote.  At Paipote,7‐kg bagged blank reference material are inserted after each duplicate and then sent to the sample preparation facility run by Geoanalitica, located approximately 1‐km from ATM’s core shed. The sample preparation stream, as well as the QA/QC protocol is shown in Figure 11.1.

Diamond Drill Holes  Diamond drill core is boxed in aluminum trays 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. Thereafter, the geologist carefully selects “mineralized” 2‐m samples for duplicates. Diamond saw splitting is carried out in the ATM core shed located in Paipote.  One half of the core is returned to the core box for final logging and storage; the other half is properly bagged and labeled, blanks are inserted, and delivered to Geoanalítica for preparation together with the list of samples selected as duplicates. The sample preparation stream for DDH is shown in Figure 11.2.

Figure 11.1 Sample Preparation Protocol – RC and QA‐QC

Figure 11.2 Sample Preparation Protocol – DDH and QA‐QC

(Figure 11.2 Continued Sample Preparation Protocol – RC and QA‐QC)

Quality control protocols include the following:

 Insertion of standards acquired at Geostats Pty.  Insertion of commercial blanks acquired at Geostats Pty.  Insertion of field duplicates for reverse circulation holes.  Insertion of coarse rejects (‐10#) for diamond drill holes.  Insertion of ‐150# pulp duplicates.

Quality control analyses carried out during 2011‐2012 is described in detail in Section 14.0

Analytical test work during the 2011‐2012 campaign was carried out in Activation Laboratories located in Coquimbo. Gold assays were performed utilizing 50‐gr fire assay with an Atomic Absorption Spectroscopy (AAS) finish and coppervia acid digestion with an AAS finish.

12.0 DATA VERIFICATION Atacama retained the services of Ms. Natasha Tschishow , MSc in Geology with 25 years experience to undertake the following duties: implement and control the sample preparation protocol and QA‐QC procedures both theoretical and practical with frequent site visits, ensure Maricunga´s database integrity, assist in the construction of geological models, resource calculations and reporting.

Ms. Tschischow certifies that she 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. Ms. Tschischow reviewed the procedures being used to log the DD core and the RC cuttings and confirmed that the logging was being performed to industry standards.

The author and Ms. Tschischow performed statistical analyses of the inserted blanks, standards, and duplicates (field and pulp) and confirm that the sample preparation and assaying was properly performed and that the drill hole data may be used with confidence 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. Ms. Tschischow 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%. Average recovery was above 90%.

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.

November 22, 2011 the author and Ms. Tschishow visited the new storage facility and carried out a carefully planned experiment on 300‐m of core to compare the gold grade of the material lost through the use of the diamond saw (approximately 4 mm of core) against the half core sent for assaying. Results were excellent and it was confirmed core splitting with diamond saw introduced no biases. Statistical analyses performed by Atacama and reviewed by the author on 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 deemed unnecessary to perform duplicate assays on a second laboratory. 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.

13.0 MINERAL PROCESSING AND METALLURGICAL TESTING Atacama conducted a series of metallurgical tests consisting of bottle and drum roll tests and column leach tests. Table 13.1 summarizes the bottle roll test results conducted during the period 2008 through August 2011. Table 13.2 summarizes the results from three column tests reported in 2011.

Details on the metallurgical test procedures from the testwork summarized in Tables 13.1 and 13.2 are reported in the “Technical Report on the Cerro Maricunga Gold Project, Region III, Chile” prepared for Atacama and dated October 7, 2011.

Table 13.1 Summary of Bottle / Drum Roll Test Results ‐ 2008 thru 2011

Head Gold Crush Size Lime NaCN Sample Grade Recovery # / Ref. 80% Passing (g/t Au) (%) (kg/t) (kg/t) 1.0 mm 1.405 76.8 2.0 1.76 201506 80 µm 1.405 82.1 2.0 1.24 1.0 mm 0.804 85.9 2.3 2.02 201517 108 µm 0.804 89.5 2.4 1.92 1.0 mm 0.587 89.6 3.1 2.14 201582 94 µm 0.587 91.0 3.0 1.38 19.0 mm 1.08 81 / 81 N/A N/A 12.5 mm 1.08 83 / 83 N/A N/A Comp 1* 9.5 mm 1.08 86 / 85 N/A N/A 6.3 mm 1.08 85 / 80 N/A N/A 1.0 mm 1.08 88 / 88 N/A N/A 19.0 mm 0.78 76 / 75 N/A N/A 12.5 mm 0.78 77 / 75 N/A N/A Comp 2* 9.5 mm 0.78 78 / 77 N/A N/A 6.3 mm 0.78 79 / 78 N/A N/A 1.0 mm 0.78 80 / 79 N/A N/A Comp 4 50.0 mm 0.28 66 1.50 0.12

25.0 mm 0.28 71 1.80 0.08 12.5 mm 0.28 75 2.25 0.02 6.3 mm 0.28 76 2.50 0.02 1.0 mm 0.28 83 2.50 0.06 0.1 mm 0.28 87 3.00 <0.01 50.0 mm 0.50 65 1.00 0.08 25.0 mm 0.50 68 1.00 0.15 12.5 mm 0.50 81 1.50 0.08 Comp 5 6.3 mm 0.50 82 2.00 0.03 1.0 mm 0.50 77 2.50 0.08 0.1 mm 0.50 89 1.50 0.03 50.0 mm 0.58 55 4.10 0.07 25.0 mm 0.58 59 4.80 0.09 12.5 mm 0.58 63 5.25 0.02 Comp 6 6.3 mm 0.58 68 6.00 0.06 1.0 mm 0.58 79 6.00 0.03 0.1 mm 0.58 82 7.00 <0.01 * Comp 1 and Comp 2 tests run in duplicate

Table 13.2 Summary of Column Leach Test Results

Crush Head Gold NaCN Additional Test Lime Slump Size Grade Recovery Consumption Lime No. (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

13.1 Recent Metallurgical Test Results – October 2011 to October 2012 Atacama progressed with metallurgical testing, announcing further results from bottle roll and column leach tests after the publication of the October 7, 2011 Technical Report.

Laboratorio Plenge (“Plenge”), Lima, Peru undertook a program of bottle roll and column tests on composite samples comprised on quartered diamond drill core selected from the three mineral zones identified at the time of the testing: Lynx, Phoenix and the Crux.

Gold recoveries ranging from 76% to 83% (Table 13.3) were achieved from three column percolation leach tests undertaken by Plenge at a crush size of 100% passing 25 mm (1 inch) over a period of 20 days. Cyanide (“NaCN”) consumption varied from 0.7 to 0.9 kg/t. The columns were not optimized for NaCN consumption. Silver head grades averaged 0.51 g/t and recoveries were minimal varying from 14 to 27%.

Table 13.3 PLENGE Column Test Results (Crush ‐ 100% passing 25 mm) Gold Zone Gold Grade Lime NaCN Test Recovery Reference (g/t Au) (%) (kg/t) (kg/t)

Comp A Phoenix 0.87 76 3.2 0.9 Comp B Lynx 1.04 83 2.3 0.7

Comp C Crux 0.70 82 2.9 0.8

Column percolation leach tests Comp A, Comp B and Comp C (Table 13.3) consisted of charges of 35.0, 44.9 and 37.2 kilograms, respectively, stacked in 16 by 160 centimeter columns. A NaCN solution continuously cycled through the columns at a rate of 10 litres per hour per square metre of column surface area with NaCN strength maintained at 0.1%. Protective alkalinity was maintained at a pH level of 10 to 11 by the initial addition of hydrated lime during the column setup and with the addition of further lime to maintain the alkalinity.

The column tests continued for a period of only 20 days which included 3 days for final drainage and washing. Leach solutions were tested daily for pH and NaCN, gold and silver content. Compaction of the completed columns was minimal showing a reduction in stack height, compared to the start of the test, of 2 to 3%.

In addition to the column test work, Plenge obtained gold recoveries of 72% to 90% from a series of nine 48 hours bottle rolls tests (Table 13.4) undertaken on material crushed to 100% passing 1.7 millimetres (10 mesh). A subset of each sample prepared by Plenge was sent to AMTEL (Advanced Mineral Technology Laboratory Ltd), London, Canada for confirmatory bottle roll tests (96 hour) returning gold recoveries of 80% to 93%, as summarized in Table 13.5, on material crushed to 80% passing 0.8 millimetres. The slightly higher recoveries achieved by AMTEL are reported to be largely the result of the tests being completed over a period of 96 hours as compared to the 48 hour tests completed by Plenge.

The Plenge bottle roll tests were undertaken on approximately 1 kilogram charges run for a period of 48 hours at 40% solids. Alkalinity was maintained between 10 and 11 and NaCN concentration was kept at 0.1%. The AMTEL bottle rolls tests were performed on 0.8 kg charges at 33.3% solids with the pH held between 10.5 and 11 with hydrated lime and with a NaCN concentration of 0.1%.

Table 13.4 – PLENGE Bottle Roll Test Results (48 hour test; Crush ‐ 100% passing 1.7mm – 10 mesh)

Test Zone Gold Grade Recovery NaCN Lime Reference (g/t Au) (%) (kg/t) (kg/t) Comp 1 Phoenix 1.47 87 0.7 2.5 Comp 2 Phoenix 0.82 81 0.7 2.7 Comp 3 Phoenix 0.39 80 0.7 5.1 Comp 4 Lynx 1.78 90 0.7 1.9 Comp 5 Lynx 0.76 85 0.8 2.4 Comp 6 Lynx 0.36 72 1.0 2.5 Comp 7 Crux 1.00 88 0.8 2.7 Comp 8 Crux 0.70 82 1.5 3.0 Comp 9 Crux 0.42 83 1.1 2.5

Table 13.5 – AMTEL Bottle Roll Test Results (96 hour test; Crush ‐ 80% passing 0.8 mm) Gold Zone Recovery NaCN Lime Sample Location Test Grade Reference (g/t Au) (%) (kg/t) (kg/t) Drill Hole Meters 260‐272 Comp 1 Phoenix 1.54 92 0.2 3.2 CMD‐026 280‐292 Comp 2 Phoenix 0.78 84 0.4 4.1 CMD‐037 76‐94

Comp 3 Phoenix 0.37 81 0.3 6.9 CMD‐010 30‐40

Comp 4 Lynx 1.98 93 0.3 2.8 CMD‐049 50‐56 CMD‐058 146‐154 Comp 5 Lynx 0.82 88 0.4 3.8 CMD‐049 74‐86 CMD‐058 108‐118 Comp 6 Lynx 0.38 80 0.2 3.8 CMD‐038 64‐72 CMD‐011 108‐118 Comp 7 Crux 1.21 91 0.3 4.2 CMD‐056 64‐72 Comp 8 Crux 0.67 86 0.6 4.7 CMD‐014 230‐248 CMD‐027 48‐56 Comp 9 Crux 0.34 85 0.6 4.3 CMD‐031 58‐68

On January 10, 2012, Atacama reported column percolation leach tests from the Cerro Maricunga achieved gold recoveries ranging from 77 to 86%. Eight column tests were completed on four master composite samples comprised of average to low grade oxide‐associated gold mineralization. The mineralized test material was crushed to 19, 50 or 100 mm. Table 13.6 presents a summary of the column test results.

Composite 5 and Composite 6, which graded 0.51 and 0.58 g/t Au, respectively, achieved gold recoveries from 77 to 86%. A 580 kg subsample of Composite 6 crushed to 100 mm (~4 inches) attained a gold recovery of 77%, modestly lower than the 80% recovery achieved from the same composite material crushed to 19 mm (~3/4 inches). The Composite 6 material was collected from a series of surface trenches cutting the Cerro Maricunga deposit.

Gold recoveries of 78 to 82% were achieved from the lower grade (0.22 and 0.28 g/t Au) columns.

Table 13.6 KCA Column Test Results Head Gold Sample Crush Size NaCN Lime Composite Test Grade Recovery Weight Sample No (P80 ‐ mm) (g/t Au) (%) (kg/t) (kg/t) (kg) Comp. 4 60042 19 0.28 80 0.82 2.5 39.9

Comp. 4 60045 19 0.28 82 0.52 2.5 39.8 Comp. 5 60048 19 0.51 86 0.74 2.0 39.9 Comp. 5 60051 19 0.51 84 0.97 2.0 39.4 Comp. 6 60033 100 0.58 77 0.09 6.6 580.0

Comp. 6 60036 50 0.58 78 0.10 6.7 210.9 Comp. 6 60039 19 0.58 80 0.44 6.5 39.8 Comp. 7 60054 19 0.22 78 0.57 4.0 39.9

Note: samples were agglomerated using 1.0 kg/t.

The column tests, conducted by Kappes, Cassidy and Associates (“KCA”), Reno, Nevada, were run for 87 days with 86% of the extractable gold recovered within the first 20 days of column leaching. Column tests were not optimized to minimize NaCN consumption; however, NaCN consumption was low to moderate. All tests showed no slumping.

A total of eight column percolation leach tests were completed during this phase of metallurgical testing. The first four tests were duplicated columns completed on Composite 4 and 5 which assayed 0.28 g/t Au and 0.51 g/t Au respectively. Composite 7 was undertaken to examine the leach kinetics and gold recoveries of low grade (0.22 g/t Au) mineralization. Composite samples 4, 5 and 7 were prepared from quartered drill core crushed to 19 mm (P80) and charges weighing between 39 and 40 kg were loaded into columns measuring 150 mm in diameter reaching a height of 1.5 m. The samples were agglomerated using 1.0 kg/t of cement with barren NaCN solution.

Composite 6 was a 1.5 tonne composite sample of gold mineralization grading 0.58 g/t Au collected from surface trenches. Three column tests were undertaken on Composite 6 to evaluate gold recoveries at 100, 50 and 19 mm (P80) crush sizes. A 580.0 kg, 100 mm crush, charge was loaded into a 0.45 m diameter column to a height of 3.01 m. The 50 mm crush charge, weighing 210.9 kg, was placed in a 0.29 m diameter column to a height of 2.50 m. The 19 mm charge was treated similar to the other 19 mm crush columns and all crushed material was agglomerated as noted above. Cyanide consumption

ranged from a very low 0.09 kg/t for the 580.0 kg charge to a moderate 0.44 kg/t for the smaller 39.8 kg charge. Approximately 6.6 kg/t of lime was added to the three columns, more than was necessary to ensure the column pH did not fall below 9. Final pH for the Composite 6 columns varied from 10.1 to 10.3.

The initial leach solution for each column contained 1.0 gram NaCN per litre of solution and during the test, the continued cyanide strength was maintained at a target level of 0.5 gram NaCN per litre. Consumption decreases with increasing crush size suggesting the principal cause of NaCN consumption is evaporation.

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. Additional lime was added, if necessary, to maintain the alkalinity. Lime consumption is low to average, up to 6.5 kg/t for the near surface mineralization (Composite 6) collected from surface trenches. The higher lime consumption associated with the near surface environments is most likely explained by surface effects such as sulphate formation.

Column test extraction results were based upon granular activated carbon assays vs. the calculated head grade (carbon assays plus tail assays).

13.2 Ball Mill Grindability Tests Ball mill grindability tests undertaken on KCA composite samples 4, 5, and 6 returned low to medium hardness results of 10.67, 10.49 and 9.77 kilowatts/hour/tonne, respectively. The results were in line with earlier test work.

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

14.1 Introduction and Scope of Work Minera Atacama Pacific Chile Limitada (ATM) published an NI‐43‐101 in October 2011 which included Phase I and II drilling results and geological resources estimated using that data. The present report should be considered as an update that describes Phase III drilling campaign and geological resources estimated using all available data. Minera Atacama Pacific Chile Limitada (ATM), requested NCL Consultores Limitada, Magri Consultores Limitada and NTK Consultores Limitada to conduct the geological resource estimation of the Cerro Maricunga deposit. Diamond and reverse circulation drilling at Cerro Maricunga have been carried out in three phases. Total diamond (DDH) and reverse circulation (RC) meters drilled in each phase are as follow:

Phase DDH (meters) RC (meters) I 719.90 1,422.00 II 7,251.47 24,570.00 III 14,361.66 31,614.00

Assay data obtained from surface trench sampling was used for modeling purposes but was not included in the geological resource estimation process.

Specific gravity determinations were carried out in 391 10‐cm core specimens. Tests were performed at Vigalab in Copiapó using the wax‐coated method.

Quality assurance and control included the analyses of standards and blanks acquired at Geostats Pty, in‐house blanks, pulp duplicates, and coarse and field duplicates for DDH and RC samples respectively.

14.2 Description of Modeling Procedure Data Used

The model was generated using the following data:

1. Surface maps containing lithological units, structures and trenches with assays.

2. Geological descriptions (logging) of 22,333.03 meters of core specimen and assays.

3. Lithological descriptions (quick‐logging) of 57,606 meters of RC cuttings and assays.

Section and Plan Interpretation

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. A grade‐shell of 150 ppb was contoured and interpolated, as well as know barren porphyry units.

Final “Geology” Model for Resource Estimation The hand‐interpreted “geology model” was based on interpolated sections and plans using the 150‐ppb contour and structures. The final hand‐interpreted model was digitized in AutoCAD and exported to GEMS as polygons (work performed by Atacama), which was finally converted into 3_D solids (work performed by NCL). Final solids, based‐on 150‐ppb contours and structures were generated in GEMS for the following mineralized zones: Lynx (Lynx.bt2), Phoenix (Phoenix.bt2), Pollux (Pollux.bt2) and Crux (Crux.bt2). Each solid was assigned a specific code: Lynx = 1, Phoenix = 2, Crux = 3 and Pollux = 4. Barren zone surrounding these solids is referred to as “Outside” and assigned a code = 5. Figure 14.2.1 shows a three‐dimensional view of the final solids. The Lynx and Phoenix are separated by an approximately NS, sub‐vertical porphyry dike, which hosts low‐grade Au mineralization. In general, Lynx, Phoenix and Pollux have a NW structural pattern (the “apparent” NS structural pattern observed in Phoenix corresponds to the orientation of the sections). The structural pattern of Crux differs from the above, since faults have a marked ESW trend.

Figure 14.2.1 View of the Maricunga Mineralized Zones

14.3 Available Data, QA‐QC and Twin Hole Analyses

Available Data Data used for the resource estimation consisted of reverse circulation and diamond drillhole samples that are described in Table 14.3.1. Some stretches within reverse circulation holes were not assayed due to poor cutting recovery. Non‐assayed intervals are detailed in Table 14.3.2

Table 14.3.1 Maricunga Drilling by Zone – Meters Drilled & Meters Assayed

RC‐Meters DDH‐Meters RC + DDH‐Meters ZONE PHASE N° N° N° Drilled Assayed Drilled Assayed Drilled Assayed Holes Holes Holes I 3 852.00 852.00 1 217.00 217.00 4 1069.00 1069.00

II 3 1,346.00 1,346.00 7 2,299.25 2,299.25 10 3,645.25 3,645.25 CRUX III 39 12,730.00 12,728.00 9 3,502.82 3,502.82 48 16,232.82 16,230.82

Sub‐Total 45 14,928.00 14,926.00 17 6,019.07 6,019.07 62 20,947.07 20,945.07

Sub‐Total 82 31,032.00 30,994.00 28 10,701.46 10,701.46 110 41,733.46 41,695.46

I 0 0.00 0.00 1 181.85 181.85 1 181.85 181.85

II 16 6,734.00 6,734.00 8 2,384.30 2,384.30 24 9,118.30 9,118.30 LYNX III 14 4,912.00 4,912.00 9 3,046.35 3,046.35 23 7,958.35 7,958.35

Sub‐Total 30 11,646.00 11,646.00 18 5,612.50 5,612.50 48 17,258.50 17,258.50

I 5 1,422.00 1,422.00 3 719.90 719.90 8 2141.90 2141.90

II 60 24,570.00 24,562.00 22 7,251.47 7,251.47 82 31,821.47 31,813.47 ALL ZONES III 92 31,614.00 31,582.00 38 14,361.66 14,361.66 130 45,975.66 45,943.66

TOTAL 157 57,606.00 57,566.00 63 22,333.03 22,333.03 220 79,939.03 79,899.03

Table 14.3.2 Maricunga – Non Assayed Intervals due to Poor Recovery ZONE PHASE HOLE‐ID FROM TO LENGTH TOTAL‐M

Crux II CMR‐142 52.00 54.00 2.00 2.00 CMR‐013 144.00 146.00 2.00 I 4.00 CMR‐013 146.00 148.00 2.00 CMR‐032 334.00 336.00 2.00 II 4.00 CMR‐055 0.00 2.00 2.00 CMR‐101 0.00 2.00 2.00 CMR‐156 300.00 302.00 2.00 CMR‐156 302.00 304.00 2.00 CMR‐156 304.00 306.00 2.00 CMR‐156 306.00 308.00 2.00 Phoenix CMR‐156 308.00 310.00 2.00 &Pollux CMR‐156 310.00 312.00 2.00 III CMR‐156 312.00 314.00 2.00 30.00 CMR‐156 314.00 316.00 2.00 CMR‐156 316.00 318.00 2.00 CMR‐156 318.00 320.00 2.00 CMR‐156 320.00 322.00 2.00 CMR‐156 322.00 324.00 2.00 CMR‐162 0.00 2.00 2.00 CMR‐190 128.00 130.00 2.00

Database Quality Assessment and Quality Control During drilling of 2010 – 2012 drilling campaigns, sample quality assurance and quality control measures included the insertion of duplicates, standards and blanks. This section of the report presents statistical analyses of data collected during Phase III (2011‐2012) campaign. Analyses were performed for the following: 655 field/coarse rejects, and 655 pulp duplicates (‐150#) for chemical laboratory analysis. Additionally, grade QAQC analyses were performed for 894 Geostats standards, and 388 in‐house and 265 Geostats blank samples. Further details are shown in Table 14.3.3.

Table 14.3.3 Maricunga Database Quality Assessment and Quality Control PHASE I II III Total Years 2010 2010-2011 2011-2012 2010-2012 N° Drillholes 8 82 130 220 Meters Assayed 2,141.90 31,444.57 45,945.66 79,532.13 N° Samples Assayed 1,072 15,722 22,974 39,768 QA ‐ QC Assays N° Standards 48 534 894 1,476 N° Blanks In‐House 18 187 388 593 N° Blanks‐Geostats 0 0 265 265 N° Field/Coarse Rejects 39 534 655 1,228 N° Pulp Duplicates 39 534 655 1,228 Total QA ‐ QC Assays 144 1,789 2,857 4,790 % QA ‐ QC Assays 13.4 11.4 12.4 12.0

The results indicate that sample preparation and analyses were acceptably precise and exact during the 2010‐2012 drilling campaigns.

Data Management The following action was taken in preparing the data for statistical analyses:

Values for Au reported as “<0.005” were replaced by “0.0025” (this corresponds to values below the 5 ppb detection limit for gold).

Analysis of Duplicate Samples Table 14.3.4 summarizes the QA/QC results for all RC field duplicates, DDH coarse duplicates (10#) and pulp duplicates.

Table 14.3.4 Summary of QA-QC results for duplicate samples – Au RC – Au (ppm) DDH – Au (ppm) Pulp – Au (ppm) Results Original Duplicate Original Duplicate Original Duplicate Number of samples 417 417 238 238 655 655 Minimum 0.003 0.003 0.009 0.009 0.003 0.003 Maximum 2.615 2.607 4.502 3.142 3.142 3.137 Mean 0.224 0.224 0.360 0.352 0.270 0.271 Std. Deviation 0.292 0.286 0.503 0.455 0.362 0.367 Test T (of the means) 0.19 1.10 ‐0.47 Mean Relative Error (%) 13.31 7.83 10.61 Correlation (r) 0.994 0.979 0.994 Intercept 0.005 0.033 ‐0.002 Slope 0.975 0.887 1.009

In all cases the original and duplicate data show good agreement:

 Results for the T Tests (all values are within [‐1.96, 1.96]) show that the original and duplicate means are not significantly different, based on 95% confidence intervals.  Mean relative errors are close to 13% for the RC field duplicates and around 8% for DDH coarse duplicates. However, the mean relative error for pulp duplicates is 10.61%, which is considerably higher than that for DDH coarse duplicates. The reason for this increase is due to the fact that there are many low grade values in the pulp duplicates, which inflate the relative errors.  In all three cases, correlation values are high (very close to 1), intercepts are low and slopes are close to 1, indicating a high degree of correspondence between the original and duplicate samples.

The effect of low grade samples on the mean relative error for pulp (and other) duplicates was verified by repeating the statistical analyses presented in Table 14.3.4 after pairs with an average Au value lower than 0.1 ppm had been eliminated. Results of this reanalysis are presented in Table 14.3.5. A threshold of 0.1 ppm was selected because samples with grades lower than this are not likely to be of interest for modeling the resources for open pit planning, and they contribute large amounts of relative error as many of them are close to the gold detection limit.

Table 14.3.5 Summary of QA-QC results for duplicate samples ≥0.1 ppm-Au RC – Au (ppm) DDH – Au (ppm) Pulp – Au (ppm) Results Original Duplicate Original Duplicate Original Duplicate Number of samples 239 239 160 160 399 399 Minimum 0.093 0.094 0.099 0.101 0.098 0.055 Maximum 2.615 2.607 4.502 3.142 3.142 3.137 Mean 0.355 0.355 0.508 0.497 0.412 0.413 Std. Deviation 0.328 0.319 0.556 0.495 0.404 0.412 Test T (of the means) ‐0.05 1.11 ‐0.33 Mean Relative Error (%) 7.78 6.44 6.21 Correlation (r) 0.992 0.974 0.993 Intercept 0.013 0.056 ‐0.004 Slope 0.964 0.867 1.011

As can be seen, 178 RC duplicates, 78 DDH duplicates and 256 pulp duplicates were eliminated, indicating that a considerable amount of the data was below 0.1 ppm Au. Eliminating low grade duplicates had the following effects:

 The mean Au grades increased from 0.224 to 0.355 ppm for RC, from 0.352 to 0.497ppm for DDH and from 0.271 to 0.413 ppm for pulps.  The mean relative errors decreased. This was especially notorious for pulp duplicates, where the mean relative error decreased from 10.61 to 6.21%.  The elimination of low grade samples also affected the percentage of data meeting the absolute relative difference criteria, as summarized in Table 14.3.5.

Table 14.3.6 QA-QC Criteria and Results for Au Duplicates Result for Result for Au Duplicate type Criteria all Au data >0.1 ppm Reverse circulation drilling 90% data have | rel diff| < 20% 91.3 % data 96.5 % data Diamond drilling 90% data have | rel diff| < 15% 93.5 % data 96.8 % data Chemical laboratory pulp 90% data have | rel diff| < 10% 87.3 % data 95.4 % data

Acceptability criteria were not met for pulp duplicates when all the data were analyzed, most likely due to a large dispersion of relative difference values for low grade samples. When low grade samples (<0.1 ppm Au) were excluded, all three types of samples met the acceptability criteria.

Figure 14.3.1 to Figure 14.3.6 show detailed results for the RC field duplicates, DDH coarse duplicates and for the pulp duplicates, respectively.

CERRO MARICUNGA RC FIELD DUPLICATES CERRO MARICUNGA RC FIELD DUPLICATES Au ‐ SCATTER PLOT Au ‐ |REL. DIFF.| PLOT 3.00 100 90 2.50

%| 80

70 2.00 60 SAMPLE

1.50 50 DIFFERENCE 40 1.00 30 DUPLICATE 20 0.50 |RELATIVE 10 0.00 0 0.00 0.50 1.00 1.50 2.00 2.50 3.00 0 6 11 16 21 27 32 37 42 48 53 58 64 69 74 79 85 90 95

ORIGINAL SAMPLE % DATA

CERRO MARICUNGA RC FIELD DUPLICATES CERRO MARICUNGA RC FIELD DUPLICATES Au ‐ Q‐Q PLOT Au ‐ REL. DIFF. PLOT 3.00 250 200 2.50 150 % 2.00 100 SAMPLE 50 1.50 0 DIFFERENCE 1.00 ‐500.00 0.50 1.00 1.50 2.00 2.50 3.00 DUPLICATE 0.50 ‐100 RELATIVE ‐150 0.00 ‐200 0.00 0.50 1.00 1.50 2.00 2.50 3.00 ‐250 ORIGINAL SAMPLE MEAN Au VALUE

Figure 14.3.1 Results for all RC field duplicates – Au

CERRO MARICUNGA RC FIELD DUPLICATES CERRO MARICUNGA RC FIELD DUPLICATES Au > 0.1 g/t ‐ SCATTER PLOT Au > 0.1 g/t ‐ |REL. DIFF.| PLOT 3.00 100 90 2.50

%| 80

70 2.00 60 SAMPLE

1.50 50 DIFFERENCE 40 1.00 30 DUPLICATE 20 0.50 |RELATIVE 10 0.00 0 0.00 0.50 1.00 1.50 2.00 2.50 3.00 0 6 11 17 22 28 33 38 44 49 55 60 66 71 77 82 87 93 98

ORIGINAL SAMPLE % DATA

CERRO MARICUNGA RC FIELD DUPLICATES CERRO MARICUNGA RC FIELD DUPLICATES Au > 0.1 g/t ‐ Q‐Q PLOT Au > 0.1 g/t ‐ REL. DIFF. PLOT 3.00 100 80 2.50 60 % 2.00 40 SAMPLE 20 1.50 0 DIFFERENCE 1.00 ‐200.00 0.50 1.00 1.50 2.00 2.50 3.00 DUPLICATE 0.50 ‐40 RELATIVE ‐60 0.00 ‐80 0.00 0.50 1.00 1.50 2.00 2.50 3.00 ‐100 ORIGINAL SAMPLE MEAN Au VALUE

Figure 14.3.2 Results for the RC field duplicates - Au ≥ 0.1 ppm

CERRO MARICUNGA DDH 10# DUPLICATES CERRO MARICUNGA DDH 10# DUPLICATES Au ‐ SCATTER PLOT Au ‐ |REL. DIFF.| PLOT 5.00 100 90

4.00 %| 80

70 3.00 60 SAMPLE

50 DIFFERENCE 2.00 40 30 DUPLICATE 1.00 20 |RELATIVE 10 0.00 0 0.00 1.00 2.00 3.00 4.00 5.00 0 6 11 17 22 28 33 39 44 50 55 61 66 71 77 82 88 93 99

ORIGINAL SAMPLE % DATA

CERRO MARICUNGA DDH 10# DUPLICATES CERRO MARICUNGA DDH 10# DUPLICATES Au ‐ Q‐Q PLOT Au ‐ REL. DIFF. PLOT 5.00 100 80 4.00 60 % 40 3.00 SAMPLE 20

2.00 0 DIFFERENCE

‐200.00 1.00 2.00 3.00 4.00 5.00 DUPLICATE 1.00 ‐40 RELATIVE ‐60 0.00 ‐80 0.00 1.00 2.00 3.00 4.00 5.00 ‐100 ORIGINAL SAMPLE MEAN Au VALUE

Figure 14.3.3 Results for DDH coarse duplicates ‐ Au

CERRO MARICUNGA DDH 10# DUPLICATES CERRO MARICUNGA DDH 10# DUPLICATES Au > 0.1 g/t ‐ SCATTER PLOT Au > 0.1 g/t ‐ |REL. DIFF.| PLOT 5.00 100 90

4.00 %| 80

70 3.00 60 SAMPLE

50 DIFFERENCE 2.00 40 30 DUPLICATE 1.00 20 |RELATIVE 10 0.00 0 0.00 1.00 2.00 3.00 4.00 5.00 1 7 13 19 26 32 38 44 51 57 63 69 76 82 88 94

ORIGINAL SAMPLE % DATA

CERRO MARICUNGA DDH 10# DUPLICATES CERRO MARICUNGA DDH 10# DUPLICATES Au > 0.1 g/t ‐ Q‐Q PLOT Au > 0.1 g/t ‐ REL. DIFF. PLOT 5.00 80

60 4.00

% 40

3.00 SAMPLE

2.00 0 DIFFERENCE 0.00 1.00 2.00 3.00 4.00 5.00

DUPLICATE ‐20 1.00

RELATIVE ‐40

0.00 ‐60 0.00 1.00 2.00 3.00 4.00 5.00 ‐80 ORIGINAL SAMPLE MEAN Au VALUE

Figure 14.3.4 Results for the DDH coarse duplicates - Au ≥ 0.1 ppm

CERRO MARICUNGA DDH & RC 150# CERRO MARICUNGA DDH & RC 150# DUPLICATES Au ‐ SCATTER PLOT DUPLICATES Au ‐ |REL. DIFF.| PLOT 3.50 100 90 3.00

%| 80

2.50 70 60

SAMPLE 2.00

50 DIFFERENCE 1.50 40 1.00 30 DUPLICATE 20 0.50 |RELATIVE 10 0.00 0 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 0 5 11 16 22 27 32 38 43 48 54 59 64 70 75 80 86 91 96

ORIGINAL SAMPLE % DATA

CERRO MARICUNGA DDH & RC 150# CERRO MARICUNGA DDH & RC 150# DUPLICATES Au ‐ Q‐Q PLOT DUPLICATES Au ‐ REL. DIFF. PLOT 3.50 250

3.00 200 150

2.50 % 100

SAMPLE 2.00 50 1.50 0 DIFFERENCE

1.00 ‐500.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 DUPLICATE ‐100 0.50 RELATIVE ‐150 0.00 ‐200 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 ‐250 ORIGINAL SAMPLE MEAN Au VALUE

Figure 14.3.5 Results for all pulp duplicates – Au

CERRO MARICUNGA RD & DDH 150# CERRO MARICUNGA RD & DDH 150# DUPLICATES Au > 0.1 ‐ SCATTER PLOT DUPLICATES Au > 0.1 ‐ |REL. DIFF.| PLOT 3.50 100 90 3.00

%| 80

2.50 70 60 SAMPLE 2.00 50 DIFFERENCE 1.50 40 1.00 30 DUPLIUCATE 20 0.50 |RELATIVE 10 0.00 0 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95

ORIGINAL SAMPLE % DATA

CERRO MARICUNGA RD & DDH 150# CERRO MARICUNGA RD & DDH 150# DUPLICATES Au > 0.1 ‐ Q‐Q PLOT DUPLICATES Au > 0.1 ‐ REL. DIFF. PLOT 3.50 100

3.00 80 60

2.50 % 40 SAMPLE 2.00 20 1.50 0 DIFFERENCE

1.00 ‐200.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 DUPLIUCATE ‐40 0.50 RELATIVE ‐60 0.00 ‐80 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 ‐100 ORIGINAL SAMPLE MEAN Au VALUE

Figure 14.3.6 Results for the pulp duplicates - Au ≥ 0.1 ppm

In general, statistical analyses of all Au duplicate data examined (reverse circulation field duplicates, diamond drillhole 10# duplicates and duplicate assays), especially those above 0.1 ppm Au show good precision, indicating that the protocols used for sample preparation and assaying were adequate.

Analysis of Standard Samples Characteristics of the standard samples used for quality control are shown in Table 14.3.7.

Table 14.3.7 Summary for Standard Samples Parameter G303‐8 G909‐7 G907‐2 G907‐7 Number 227 226 221 220 Observed mean 0.273 0.491 0.897 1.504 Nominal value 0.261 0.495 0.890 1.541 Bias (%) 4.60 ‐0.81 0.79 ‐2.40

Bias (%) was calculated as:

(Observed mean – Nominal value) / Nominal value x 100.

The observed bias for the lowest grade standard (G303‐8) is slightly high. Standards G909‐7 and G907‐2, which represent a relevant portion of the resources behaved very well. The high grade standard (G907‐ 7) showed a consistent negative bias, however it affects less than 3% of the samples. The overall bias amounted to ‐0.68%, which is perfectly acceptable.

Results of the QAQC analyses of all three standard samples are shown in Figure 14.3.7.

Cerro Maricunga Standards ‐ Au

1.8

G907‐7 1.6 y = 0.986x R² = 0.9977 1.4

1.2 (g/t)

Value

1.0 G907‐2

Assayed 0.8

0.6 Standard G909‐7

0.4 G303‐8 0.2

0.0 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8

Standard Nominal Value (g/t)

Figure 14.3.7 Results for all standards

The slope of the regression line (with an intercept fixed to zero) should ideally be equal to 1.000. In this case, the observed slope was 0.986, which is 1.4% lower than the desired value, which is acceptable. The correlation coefficient is very high (0.999), indicating that the deviations from the regression line are low. Additionally, dispersions of the assay values for all three standards are low, indicating good assay accuracy.

Control charts for standards G303‐8, G909‐7, G907‐2 and G909‐7 are shown in Figure 14.3.8 to Figure 14.3.11.

Cerro Maricunga ‐ Au Standard G303‐8 Control Chart 0.35

0.30 (g/t)

0.25 Value

0.20 Gold

0.15 1 21 41 61 81 101 121 141 161 181 201 221

Time Line

Lower Limit Nominal Value Upper Limit Assayed Value

Figure 14.3.8 Control chart for standard G303-8

Cerro Maricunga ‐ Au Standard G909‐7 Control Chart 0.55

0.50 (g/t)

0.45 Value

0.40 Gold

0.35 1 21 41 61 81 101 121 141 161 181 201 221

Time Line

Lower Limit Nominal Value Upper Limit Assayed Value

Figure 14.3.9 Control chart for standard G909-7

Cerro Maricunga ‐ Au Standard G907‐2 Control Chart

1.02 0.97 (g/t) 0.92 0.87 Value

0.82

Gold 0.77 0.72 1 21 41 61 81 101 121 141 161 181 201 221

Time Line

Series1 Series2 Series3 Series4

Figure 14.3.10 Control chart for standard G907-2.

Cerro Maricunga ‐ Au Standard G907‐7 Control Chart 1.62 1.60 1.58

(g/t) 1.56

1.54 1.52 Value 1.50

Gold 1.48 1.46 1.44 1 21 41 61 81 101 121 141 161 181 201

Time Line

Lower Limit Nominal value Upper Limit Assayed value

Figure 14.3.11 Control chart for standard G907-7.

The control charts show, as is expected, a few samples that lie beyond the 2 standard deviation upper and lower limits. These occur for standards G909‐7, G907‐2 and G907‐7. The following results (highlighted in red circles in the corresponding figures shown above) are cause for concern:  For standard G909‐7, sample N° 40876 (CMD182) has a value of 0.397 and Sample N° 41255 (CMD200) has a value of 0.402. Both values exceed three (3) standard deviations from the mean.

 For standard G907‐2, Sample N° 26623 (CMD104) has a value of 0.751 and Sample N° 42936 (CMR155B) has a value of 1027. Both values exceed three (3) standard deviations from the mean. In conclusion, except for the 4 samples mentioned previously which should be investigated, the analyses of standards used in the 2011 – 2012 exploration campaigns show acceptable accuracy and therefore drilling results can be used with confidence for resource modeling and estimation.

Analysis of In‐House Blank Samples Blank samples were inserted into the sample preparation facility processing order to assess if there was any contamination between samples. Seven types of blanks were used, as shown in Table 14.3.8. The lots were produced by homogenizing different batches of low grade material, taken from drilling rejects once assay values had been returned from the laboratory.

Table 14.3.8 Blanks used for quality control and assurance Lot Number used Mean Au value (ppm) Lot 1 ‐ AP 91 0.0074 Lot 2 ‐ AP 83 0.0093 Lot 3 ‐ AP 84 0.0052 Lot 4 ‐ AP 51 0.0053 Lot 5 ‐ AP 42 0.0086 Lot C 11 0.0046 Lot D 26 0.0059

Figure 14.3.12 shows Au grade dispersion within each lot and Figure 14.3.13 a sequential Au assay plot for blank samples inserted during the 2011 – 2012 drilling campaign.

Cerro Maricunga In‐House Blanks Lot v/s Au‐Grade 0.300 0.250 (g/t)

0.200 0.150 GRADE 0.100

GOLD 0.050 0.000 012345678

Blank Lot 1 to 5 + C (6) & D (7)

Figure 14.3.12 Gold Grade Values per Lot – In House Blanks

Cerro Maricunga in House Blanks ‐ Au vs. Time 0.300

0.250

0.200 (g/t)

0.150 grade

0.100 Gold 0.050

0.000 0 500 1000 1500 2000 2500 3000 3500 4000

Time sequence

Figure 14.3.13 Time Sequenced Au Values – In House Blanks

Five anomalous values were encountered (marked with red dots in Figure 14.3‐13):

N° LOT Au Assay Preceding Au Assay Hole‐ID Sample

1 1 0.256 0.054 CMR113 23345

2 1 0.051 0.138 CMD096 22925

3 2 0.067 0.718 CMD111 26198

4 2 0.071 0.534 CMD104 25506

5 5 0.138 0.392 CMD145 36741

Value N°1 probably corresponds to Standard G303‐8, which was misplaced. The remaining anomalous values may be due to slight contamination of four (4) out of some 23,000 samples assayed during Phase III.

Analysis of Commercial Blank Samples A set of 265 500‐g sachets of blank certified material, acquired at Geostats Pty, were inserted to control possible contamination in the analytical laboratory.

Figure 14.3.14 shows assayed gold values. The first plot (top) includes an anomalous results that corresponds to a sample of standard G‐308‐3 (0.250 g/t) which was mislabeled; the second (bottom) graph corresponds to gold values obtained for the remaining 264 samples. Results are reasonably good.

Cerro Maricunga Blank GLG 307‐1 (‐150#) Au 0.300

0.250

0.200 (g/t)

0.150 Value

0.100 Gold 0.050

0.000 1 9 17 25 33 41 49 57 65 73 81 89 97 105 113 121 129 137 145 153 161 169 177 185 193 201 209 217 225 233 241 249 257 Time Line

Cerro Maricunga Blank GLG 307‐1 (‐150#) Au 0.050

0.040 (g/t) 0.030 Value 0.020 Gold 0.010

0.000 1 9 17 25 33 41 49 57 65 73 81 89 97 105 113 121 129 137 145 153 161 169 177 185 193 201 209 217 225 233 241 249 257 Time Line

Figure 14.3.14 Geostats Blank Certified Material - Au

Overall conclusions drawn from the QAQC analyses are as follows:

 Analyses of duplicates show good precision, indicating that the protocols used for sample preparation and assaying were adequate.  Analyses of standards used during exploration show good accuracy.  Analyses of blanks show no serious contamination problems between samples.

The overall conclusion is that QA‐QC data generated throughout the 2011 – 2012 drilling campaigns at Cerro Maricunga meets acceptability criteria and therefore the exploration data can be used with confidence for resource modeling and estimation.

Twin Hole Analyses Eleven sets of twin holes have been performed in the Cerro Maricunga Project; two (2) in Lynx, six (6) in Phoenix and three (3) in Crux. Identification and length of each hole, as well as section locations are listed in Table 14.3.9.

Table 14.3.9 List of Twinned Holes – Maricunga Twin hole Set N° DDH ‐ Hole‐ID DDH‐Length RC – Hole‐ID RC‐Length Section Zone 1 CMD004 181.85 CMR209 450.00 2300 Lynx 2 CMD198 80.35 CMR089 350.00 2200 Lynx 3 CMD010 165.35 CMR018 444.00 1400 Phoenix 4 CMD092 589.60 CMR002 342.00 1600 Phoenix 5 CMD093 531.00 CMR041 348.00 1400 Phoenix 6 CMD096 351.85 CMR030 374.00 1500 Phoenix 7 CMD099 700.00 CMR067 450.00 1550 Phoenix 8 CMD178 107.85 CMR045 312.00 1400 Phoenix 9 CMD192 320.00 CMR097 200.00 400 Crux 10 CMD193 180.00 CMR129 400.00 550 Crux 11 CMD196 250.02 CMR098 250.00 350 Crux

Gold assay results have been compared for each twin hole set. Comparisons were carried out with pairs of samples that comply with the following conditions:

 Pairs lie within the mineralized bodies, according to the 2012 geological resource model.  Distances between sample pairs are 10.00‐m maximum. Distances between pairs were calculated using the central coordinates of each 2‐m sample. The formula used was:

Distance between Pairs = √ΔX2 + ΔY2+ ΔZ2 Where: ∆X = Difference in North Coordinate between pairs of samples. ∆Y = Difference in East Coordinate between pairs of samples. ∆Z = Difference in Elevation between pairs of samples.

Analyses of Individual Sets Statistics and a set of plots were prepared for each pair of twinned holes. Graphs for each pair of twinned holes consist of:

 Trend plot for sample pairs located at a maximum distance of 10.0‐m  Trend, scatter, quantile‐quantile (Q‐Q), and Au‐relative difference plots for sample pairs within the 0.15‐g/t contoured solids located at a maximum distance of 10.0‐m.

Drillhole intervals and number of sample pairs used for these graphs are shown in Table 14.3.10.

Table 14.3.10 Sample Pairs with Distances ≤ 10.0‐m & Sample Pairs within Solids Samples Pairs ≤ 10.0‐m Distances Sample Pairs ≤ 10‐m Distances within Solids TWIN HOLES N° Pairs Min Max From To N° Pairs Min Max

CMD004 – CMR209 91 0.6 3.0 34.00 181.85 74 0.7 3.0

CMD198 – CMR089 40 2.1 2.9 0.00 72.00 36 2.1 2.9

CMD010– CMR018 (1) 83 5.0 5.5 0.00 126.00 63 5.0 5.0

CMD‐092 – CMR002 171 2.0 8.7 0.00 126.00 63 2.0 3.8

CMD093 – CMR041 77 3.1 9.9 38.00 130.00 46 3.5 7.4

CMD096 – CMR030 91 3.3 9.7 14.00 136.00 61 3.4 6.0

CMD099 – CMR067(2) 57 3.5 9.8 ‐ ‐ ‐ ‐ ‐

CMD178 – CMR045 49 3.5 10.0 0.00 98.00 49 3.5 10.0

CMD192 – CMR097 75 3.3 9.7 0.00 126.00 63 3.3 8.1

CMD193 – CMR129 90 3.5 9.7 0.00 126.00 63 3.5 6.1

CMD196 – CMR098 125 2.0 6.5 0.00 126.00 63 2.0 2.0 (1): Not surveyed; (2): Do not intersect solid.

It should be noted that twin holes CMR‐018 and CMD010 were not surveyed; therefore “real” distances between pairs of samples are unknown, nevertheless, it was decided to include them in this analysis since distances between pairs of samples for the rest of the holes at a depth of 126.0‐m are less than 10.00‐m. Distances between pairs for remaining holes at 126.0‐m depth are shown below.

DH Hole-ID RC Hole-ID Max Dist CMD004 CMR209 1.4 CMD092 CMR002 3.8 CMD093 CMR041 7.1 CMD096 CMR030 5.4 CMD192 CMR097 8.1 CMD193 CMR129 5.8 CMD196 CMR098 5.9

Twin holes CMD099 and CMR067 are not included in this analysis, since neither intersected the solid.

Table 14.3.11 shows mean gold grades for each set of twin holes. Means were calculated for all pairs at a maximum distance of 10.0‐m, as well as for pairs within solids (at a maximum distance of 10.0‐m). As can be seen, the highest means occur in either in DDH or RC holes. Additionally, the overall average gold grades in DDH and RC holes are very similar (0.542 v/s 0.545), thus indicating that there is no global bias.

Table 14.3.11 Comparison ‐ Average Au Grades: Pairs Maximum Distance ≤ 10‐m & Pairs Maximum Distance ≤ 10‐m within Solids Hole‐ID Au‐g/t in Diamond Holes Hole‐ID Au‐g/t in RC Holes DDH All Pairs Pairs in Solid RC All Pairs Pairs in Solid CMD004 0.382 0.434 CMR209 0.413 0.475 CMD198 0.852 0.893 CMR089 0.600 0.660 CMD010 0.277 0.231 CMR018 0.278 0.265 CMD092 0.861 0.718 CMR002 0.721 0.534 CMD093 0.191 0.247 CMR041 0.282 0.369 CMD096 0.304 0.418 CMR030 0.242 0.315 CMD178 0.331 0.331 CMR045 0.513 0.513 CMD192 0.440 0.425 CMR097 0.472 0.469 CMD193 0.509 0.673 CMR129 0.518 0.613 CMD196 0.570 1.090 CMR098 0.645 1.239 Mean 0.502 0.542 0.493 0.545

Total N° of Pairs at 10.0‐m distance or less: 892 Total N° of Pairs at 10.0‐m distance or less within solids: 581

Statistics and Graphs for CMD004‐CMR209 ‐ Lynx Zone The following comments are pertinent regarding data shown in Table 14.3.12 and Figures 14.3.15 and 14.3.16.

 The T statistic (‐2.36) shows a significant difference between means, being the DDH mean higher than the RC mean, the global bias being ‐9.39.  The trend‐plots (Figure 14.3.15) show consistency between gold values of CMR‐209 and CMD‐ 004.  The scatter‐plot (Figure 14.3.16) has a relatively low dispersion as shown by the correlation coefficient (0.875).  The Q‐Q plot (Figure14.3.16) shows that RC grades are slightly higher than the DDH grades for gold values under to 0.40 ppm. Thereafter, gold grades follow a similar pattern.  The pair‐wise relative difference v/s mean grade plot with a 10‐term moving average (red line) shows a similar trend to the Q‐Q plot.

Table 14.3.12 SUMMARY OF DATA CMD004 CMR209 DIFFERENCE REL. VAR.

NUMBER 74 74 74 74 MINIMUM 0.04 0.14 ‐0.53 0.00 MAXIMUM 1.26 1.14 0.25 1.16 MEAN 0.434 0.475 ‐0.04 0.13 STD. DEV. 0.30 0.23 0.15 T TEST ‐2.36 MEAN REL. ERR. 35.53 BIAS (%) ‐9.39 r 0.875

Down the Hole Trends ‐ CMD004 & CMR209 Maximum Distance between Pairs: 3.0‐m All Pairs Maximum Distance between Pairs: 10‐m

1.40 1.20 1.00 g/t

‐ 0.80

0.60 AU‐CMD004 Grade

0.40 Au AU‐CMR209 0.20 0.00 1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 85 89 N°Pairs

Down the Hole Trends ‐ CMD004 & CMR209 Maximum Distance between Pairs: 3.0‐m Pairs within Solid

1.40 1.20 1.00 g/t

‐ 0.80

0.60 AU‐CMD004 Grade

0.40 Au AU‐CMR209 0.20 0.00 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 N°Pairs

Figure 14.3.15 Trend Plots – Au Grades

CERRO MARICUNGA TWIN HOLES SOLID CERRO MARICUNGA TWIN HOLES IN SOLID CMD004 & CMR209 ‐ SCATTER PLOT CMD004 & CMR209 ‐ Q‐Q PLOT 1.40 1.40 1.20 1.20 1.00 1.00 0.80 0.80 0.60 0.60 CMR209 CMR209 0.40 0.40 0.20 0.20 0.00 0.00 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40

CMD004 CMD004

CERRO MARICUNGA TWIN HOLES IN SOLID CMD004 & CMR209 ‐ REL. DIFF. PLOT 200 150 % 100 50 0 DIFFERENCE

‐500.00 0.50 1.00 1.50 ‐100 RELATIVE ‐150 ‐200 MEAN AU VALUE

Figure 14.3.16 Scatter, Q‐Q and Relative Difference Plots ‐ Au

Statistics and Graphs for CMD198 ‐ CMR089 ‐ Lynx Zone The following comments are pertinent regarding data shown in Table 14.3.13 and Figures 14.3.17 and 14.3.18.

 The T statistic (2.21) shows a significant difference between means, being the DDH mean higher than the RC mean, the global bias being 26.07%.  The trend‐plots (Figure 14.3.17) show similar overall trends, nevertheless DDH gold values are higher than RC values.  The scatter plot (Figure 14.3.18) has a relatively low dispersion for grades below 0.3 g/t, thereafter, DDH gold values tend to be higher.  The Q‐Q plot (Figure 14.3.18) shows that DDH grades are higher than RC grades for gold values above 0.3‐g/t.  The pair‐wise relative difference v/s mean grade plot with a 10‐term moving average (red line) shows a similar trend to the Q‐Q plot.

Table 14.3.13 SUMMARY OF DATA CMD198 CMR089 DIFFERENCE REL. VAR.

NUMBER 36 36 36 36 MINIMUM 0.04 0.10 ‐1.02 0.00 MAXIMUM 3.55 2.68 2.30 0.89 MEAN 0.89 0.66 0.23 0.22 STD. DEV. 0.97 0.73 0.63 T TEST 2.21 MEAN REL. ERR. 46.80 BIAS (%) 26.07 r 0.759

Down the Hole Trends ‐ CMD198 & CMR089 Maximum Distance between Pairs: 2.4‐m All Pairs

4.00 3.50 3.00

g/t 2.50 ‐ 2.00 AU‐CMD198

Grade 1.50

Au 1.00 AU‐CMR089 0.50 0.00 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 N°Pairs

Down the Hole Trends ‐ CMD198 & CMR089 Maximum Distance between Pairs: 2.3‐m Pairs within Solid

4.00 3.50 3.00

g/t 2.50 ‐ 2.00 AU‐CMD198

Grade 1.50

Au 1.00 AU‐CMR089 0.50 0.00 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 N°Pairs

Figure 14.3.17 Trend Plots – Au Grades

CERRO MARICUNGA TWIN HOLES IN SOLID CERRO MARICUNGA TWIN HOLES IN SOLID CMD198 & CMR089 ‐ SCATTER PLOT CMD198 & CMR089 ‐ Q‐Q PLOT 3.00 3.00

2.50 2.50

2.00 2.00

1.50 1.50 CMR089 CMR089 1.00 1.00

0.50 0.50

0.00 0.00 0.00 0.50 1.00 1.50 2.00 2.50 3.00 0.00 0.50 1.00 1.50 2.00 2.50 3.00

CMD198 CMD198

CERRO MARICUNGA TWIN HOLES IN SOLID CMD198 & CMR089 ‐ REL. DIFF. PLOT 150

100 %

0 DIFFERENCE 0.00 1.00 2.00 3.00 ‐50

RELATIVE ‐100

‐150 MEAN AU VALUE

Figure 14.3.18 Scatter, Q‐Q and Relative Difference Plots ‐ Au

Statistics and Graphs for CMD010 ‐ CMR018 ‐ Phoenix Zone The following comments are pertinent regarding data shown in Table 14.3.14 and Figures 14.3.19 and 14.3.20.  The T statistic (‐2.47) shows a significant difference between means (global bias equals (‐14.68‐%)).  The trend‐plot (Figure 14.3.19) shows fairly consistent trends between gold values of CMR‐018 and CMD‐010, except for a few of erratic samples.  The scatter‐plot (Figure 14.3.20) has a fairly large dispersion as shown by the low correlation coefficient (0.695) and the large pair‐wise mean relative error (50.29%).  The Q‐Q plot (Figure 14.3.20) shows a notorious bias, being gold values in CMR018 higher than those assayed in CMD010. This observation is also depicted in the pair‐wise relative difference v/s mean grade plot with a 10‐term moving average.

SUMMARY OF DATA Table 14.3.14 CMD010 CMR018 DIFFERENCE REL. VAR.

NUMBER 63 63 63 63 MINIMUM 0.01 0.00 ‐0.44 0.00 MAXIMUM 0.49 0.61 0.18 1.78 MEAN 0.231 0.265 ‐0.03 0.25 STD. DEV. 0.14 0.14 0.11 T TEST ‐2.47 MEAN REL. ERR. 50.29 BIAS (%) ‐14.68 r 0.695

Down the Hole Trends ‐ CMD010 & CMR018 Maximum Distance between Pairs: 5.5‐m All Pairs

0.80 0.70 0.60

g/t 0.50 ‐ 0.40 AU‐CMD010 Grade 0.30

Au 0.20 AU‐CMR018 0.10 0.00 1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 N°of Pairs

Down the Hole Trends ‐ CMD010 & CMR018 Maximum Distance between Pairs: 5.5‐m Pairs within Solid 0.80 0.70 0.60

g/t 0.50 ‐ 0.40 AU‐CMD010 Grade 0.30

Au 0.20 AU‐CMR018 0.10 0.00 1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 N°of Pairs

Figure 14.3.19 Trend Plots – Au Grades

CERRO MARICUNGA TWIN HOLES IN SOLID CERRO MARICUNGA TWIN HOLES IN SOLID Au PHOENIX ‐ SCATTER PLOT Au PHOENIX ‐ Q‐Q PLOT 0.50 0.50

0.40 0.40

0.30 0.30 CMR018 0.20 CMR018 0.20

0.10 0.10

0.00 0.00 0.00 0.10 0.20 0.30 0.40 0.50 0.00 0.10 0.20 0.30 0.40 0.50

CMD010 CMD010

CERRO MARICUNGA TWIN HOLES IN SOLID Au PHOENIX ‐ REL. DIFF. PLOT 250 200 150 % 100 50 0 DIFFERENCE

‐500.00 0.10 0.20 0.30 0.40 0.50 ‐100 RELATIVE ‐150 ‐200 ‐250 MEAN AU VALUE

Figure 14.3.20 Scatter, Q‐Q and Relative Difference Plots ‐ Au

Statistics and Graphs for CMD092 ‐ CMR002 ‐ Phoenix Zone The following comments are pertinent regarding data shown in Table 14.3.15 and Figures 14.3.21 and 14.3.21.  The T statistic (2.86) shows a significant difference between means, being the DDH mean higher than the RC mean, the global bias being 25.58%.  The trend‐plot (Figure 14.3.21) shows consistency between gold values of CMR‐002 and CMD‐092 down to approximately 78‐m depth.  The scatter‐plot (Figure 14.3.22) has a large dispersion as shown by the low correlation coefficient (0.536) and the large pair‐wise mean relative error (45.90%), even though the distance between pairs of samples varies between 2.4 and 3.8‐m.  The Q‐Q plot (Figure 14.3.22) shows that RC grades are slightly higher than the DDH grades for gold values under to 0.7 ppm. Thereafter, the gold trend is reversed.  The pair‐wise relative difference v/s mean grade plot with a 10‐term moving average (red line) shows a similar trend to the Q‐Q plot (Figure 14.3.22).

SUMMARY OF DATA Table 14.3.15 CMD092 CMR002 DIFFERENCE REL. VAR.

NUMBER 63 63 63 63 MINIMUM 0.12 0.08 ‐0.90 0.00 MAXIMUM 2.24 1.70 1.80 1.24 MEAN 0.718 0.534 0.18 0.21 STD. DEV. 0.60 0.37 0.51 T TEST 2.86 MEAN REL. ERR. 45.90 BIAS (%) 25.58 r 0.536

Down the Hole Trends ‐ CMD092 & CMR002 Maximum Distance between Pairs: 8.7‐m All Pairs

3.50 3.00 2.50 g/t

‐ 2.00 1.50

Grade AU‐CMD092

1.00 Au AU‐CMR002 0.50 0.00 1 9 17 25 33 41 49 57 65 73 81 89 97 105 113 121 129 137 145 153 161 169 N°of Pairs

Down the Hole Trends ‐ CMD092 & CMR002 Maximum Distance between Pairs: 4.0‐m Pairs within Solid

2.50

2.00 g/t

‐ 1.50

1.00 AU‐CMD092 Grade

Au AU‐CMR002 0.50

0.00 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 N°of Pairs

Figure 14.3.21 Trend Plots – Au Grades

CERRO MARICUNGA TWIN HOLES IN SOLID CERRO MARICUNGA TWIN HOLES IN SOLID Au PHOENIX ‐ SCATTER PLOT Au PHOENIX ‐ Q‐Q PLOT 2.00 2.00

1.50 1.50

1.00 1.00 CMR002 CMR002

0.50 0.50

0.00 0.00 0.00 0.50 1.00 1.50 2.00 0.00 0.50 1.00 1.50 2.00

CMD092 CMD092

CERRO MARICUNGA TWIN HOLES IN SOLID Au PHOENIX ‐ REL. DIFF. PLOT 200

150

% 100

0 DIFFERENCE 0.00 0.50 1.00 1.50 2.00 ‐50

RELATIVE ‐100

‐150

‐200 MEAN AU VALUE

Figure 14.3.22 Scatter, Q‐Q and Relative Difference Plots ‐ Au

Statistics and Graphs for CMD093 ‐ CMR04 ‐ Phoenix Zone The following comments are pertinent regarding data shown in Table 14.3.16 and Figures 14.3.23 to 14.3.24.  The T statistic (‐2.33) shows that the difference between means is significant, being the limit value equivalent to 1.96. The global bias is ‐49.36%, being RC gold values considerably higher than DDH gold values.  The trend‐plot (Figure 14.3.23) shows lack of consistency between gold values, even though the values are consistently low except for a very high RC peak.  The scatter‐plot (Figure 14.3.24) has a large dispersion as shown by the correlation coefficient (0.162) and the pair‐wise mean relative error of ‐49.36%.  The Q‐Q plot (Figure 14.3.24) shows that RC gold values are consistently higher than DDH.  The pair‐wise relative difference v/s mean grade plot with a 10‐term moving average (red line) shows a similar trend to the Q‐Q plot (Figure 14.3.24).

SUMMARY OF DATA Table 14.3.16 CMD093 CMR041 DIFFERENCE REL. VAR.

NUMBER 46 46 46 46 MINIMUM 0.06 0.13 ‐2.18 0.00 MAXIMUM 0.60 2.24 0.29 1.77 MEAN 0.247 0.369 ‐0.12 0.21 STD. DEV. 0.13 0.31 0.36 T TEST ‐2.33 MEAN REL. ERR. 45.63 BIAS (%) ‐49.36 r 0.162

Down the Hole Trends ‐ CMD093 & CMR041 Maximum Distance between Pairs: 9.9‐m All Pairs

2.50

2.00 g/t

‐ 1.50

1.00 AU‐CMD093 Grade

Au AU‐CMR041 0.50

0.00 1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 N°of Pairs

Down the Hole Trends ‐ CMD093 & CMR041 Maximum Distance between Pairs: 7.4‐m Pairs within Solid

2.50

2.00 g/t

‐ 1.50

1.00 AU‐CMD093 Grade

Au AU‐CMR041 0.50

0.00 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 N°of Pairs

Figure 14.3.23 Trend Plots – Au Grades

CERRO MARICUNGA TWIN HOLES IN SOLID CERRO MARICUNGA TWIN HOLES IN SOLID Au PHOENIX ‐ SCATTER PLOT Au PHOENIX ‐ Q‐Q PLOT 1.40 1.40

1.20 1.20

1.00 1.00

0.80 0.80

0.60

0.60 CMR041 CMR041

0.40 0.40

0.20 0.20

0.00 0.00 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40

CMD093 CMD093

CERRO MARICUNGA TWIN HOLES IN SOLID Au PHOENIX ‐ REL. DIFF. PLOT 250 200 150 % 100 50 0 DIFFERENCE

‐500.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 ‐100 RELATIVE ‐150 ‐200 ‐250 MEAN AU VALUE

Figure 14.3.24 Scatter, Q‐Q and Relative Difference Plots ‐ Au

Statistics and Graphs for CMD096 ‐ CMR030 ‐ Phoenix Zone The following comments are pertinent regarding data shown in Table 14.3.17 and Figures 14.3.25 and 14.3.26.  The T statistic (1.69) shows that there is no significant difference between means however the global is 24.79%.  The trend‐plot (Figure 14.3.25) shows anomalous behavior since the trends are completely different.  The scatter‐plot (Figure 14.3.26) has a large dispersion as shown by the low correlation coefficient (0.434) and the large pair‐wise mean relative error (79.31%), even though the distance between pairs vary between 3.4‐m and 6.0‐m.  The Q‐Q plot and the pair‐wise relative difference v/s mean grade plot with a 10‐term moving average (Figure 14.3.26) show that DDH gold values are higher than RC for grades lower than 0.3 ppm. Thereafter the trend is reversed.

SUMMARY OF DATA Table 14.3.17 CMD096 CMR030 DIFFERENCE REL. VAR.

NUMBER 61 61 61 61 MINIMUM 0.01 0.05 ‐0.92 0.00 MAXIMUM 1.50 0.96 1.44 1.69 MEAN 0.418 0.315 0.10 0.63 STD. DEV. 0.33 0.23 0.48 T TEST 1.69 MEAN REL. ERR. 79.31 BIAS (%) 24.79 r 0.434

Down the Hole Trends ‐ CMD096 & CMR030 Maximum Distance between Pairs: 9.7‐m All Pairs

1.60 1.40 1.20

g/t 1.00 ‐ 0.80 AU‐CMD096 Grade 0.60

Au 0.40 AU‐CMR030 0.20 0.00 1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 91 N°of Pairs

Down the Hole Trends ‐ CMD096 & CMR030 Maximum Distance between Pairs: 6.0‐m Pairs within Solid

1.60 1.40 1.20

g/t 1.00 ‐ 0.80 AU‐CMD096 Grade 0.60

Au 0.40 AU‐CMR030 0.20 0.00 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 N°of Pairs

Figure 14.3.25 Trend Plots – Au Grades

CERRO MARICUNGA TWIN HOLES IN SOLID CERRO MARICUNGA TWIN HOLES IN SOLID Au PHOENIX ‐ SCATTER PLOT Au PHOENIX ‐ Q‐Q PLOT 1.00 1.00

0.80 0.80

0.60 0.60 CMR030 0.40 CMR030 0.40

0.20 0.20

0.00 0.00 0.00 0.20 0.40 0.60 0.80 1.00 0.00 0.20 0.40 0.60 0.80 1.00

CMD096 CMD096

CERRO MARICUNGA TWIN HOLES IN SOLID Au PHOENIX ‐ REL. DIFF. PLOT 250 200 150 % 100 50 0 DIFFERENCE

‐500.00 0.20 0.40 0.60 0.80 1.00 ‐100 RELATIVE ‐150 ‐200 ‐250 MEAN AU VALUE

Figure 14.3.26 Scatter, Q‐Q and Relative Difference Plots ‐ Au

Statistics and Graphs for CMD178 ‐ CMR045 ‐ Phoenix Zone The following comments are pertinent regarding data shown in Table 14.3.18 and Figures 14.3.27 and 14.3.28.  The T statistic (‐4.12) shows that there is a very significant difference between means, being the global bias ‐55.03‐%.  The trend‐plot (Figure 14.3.27) shows anomalous behavior since the trends are completely different.  The scatter‐plot (Figure 14.3.28) has a large dispersion as shown by the low correlation coefficient (0.310) and the large pair‐wise mean relative error (69.84%).  The Q‐Q plot and the pair‐wise relative difference v/s mean grade plot with a 10‐term moving average (Figure 14.3.28) show that RC gold values are consistently higher than the DDH gold values.

SUMMARY OF DATA Table 14.3.18 CMD178 CMR045 DIFFERENCE REL. VAR

NUMBER 49 49 49 49 MINIMUM 0.02 0.13 ‐0.90 0.00 MAXIMUM 1.11 1.41 0.42 1.79 MEAN 0.331 0.513 ‐0.18 0.49 STD. DEV. 0.26 0.27 0.31 T TEST ‐4.12 MEAN REL. ERR. 69.84 BIAS (%) ‐55.03 r 0.310

Down the Hole Trends ‐ CMD178 & CMR045 Maximum Distance between Pairs: 10.0‐m All Pairs

1.60 1.40 1.20 g/t 1.00 ‐ 0.80 AU‐CMD178 Grade 0.60

Au 0.40 AU‐CMR045 0.20 0.00 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 N°of Pairs

Down the Hole Trends ‐ CMD178 & CMR045 Maximum Distance between Pairs: 10.0‐m Pairs within Solid

1.60 1.40 1.20 g/t 1.00 ‐ 0.80 AU‐CMD178 Grade 0.60

Au 0.40 AU‐CMR045 0.20 0.00 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 N°of Pairs

Figure 14.3.27 Trend Plots – Au Grades

CERRO MARICUNGA TWIN HOLES IN SOLID CERRO MARICUNGA TWIN HOLES IN SOLID Au PHOENIX ‐ SCATTER PLOT Au PHOENIX ‐ Q‐Q PLOT 1.20 1.20

1.00 1.00

0.80 0.80

0.60 0.60 CMR045 CMR045 0.40 0.40

0.20 0.20

0.00 0.00 0.00 0.20 0.40 0.60 0.80 1.00 1.20 0.00 0.20 0.40 0.60 0.80 1.00 1.20

CMD178 CMD178

CERRO MARICUNGA TWIN HOLES IN SOLID Au PHOENIX ‐ REL. DIF. PLOT 250 200 150 % 100 50 RELATIVA 0 ‐500.00 0.20 0.40 0.60 0.80 1.00 1.20 ‐100 DIFERENCIA ‐150 ‐200 ‐250 MEAN Au VALUE

Figure 14.3.28 Scatter, Q‐Q and Relative Difference Plots ‐ Au

Statistics and Graphs for CMD192 ‐ CMR097 ‐ Crux Zone The following comments are pertinent regarding data shown in Table 14.3.19 and Figures 14.3.29 and 14.3.30.  The T statistic (‐1.36) shows that there is no significant difference between means however the global is ‐10.26%.  The trend‐plot (Figure 14.3.29) shows similar trends for both holes.  The scatter‐plot (Figure 14.3.30) has a large dispersion as shown by the low correlation coefficient (0.468) and a significant pair‐wise mean relative error (37.55%), even though the distance between pairs vary between 3.3‐m and 8.1‐m.  The Q‐Q plot shows very low bias for gold values below 0.6‐g/t. Thereafter, RC gold values are higher.

SUMMARY OF DATA Table 14.3.19 CMD192 CMR097 DIFFERENCE REL. VAR.

NUMBER 63 63 63 63 MINIMUM 0.10 0.12 ‐0.73 0.00 MAXIMUM 1.08 1.33 0.40 0.88 MEAN 0.425 0.469 ‐0.04 0.14 STD. DEV. 0.22 0.26 0.25 T TEST ‐1.36 MEAN REL. ERR. 37.55 BIAS (%) ‐10.26 r 0.468

Down the Hole Trends ‐ CMD192 & CMR097 Maximum Distance between Pairs: 9.7‐m All Pairs

1.40 1.20 1.00 g/t

‐ 0.80

0.60 AU‐CMD192 Grade

0.40 Au AU‐CMR097 0.20 0.00 1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 N°Pairs

Down the Hole Trends ‐ CMD192 & CMR097 Maximum Distance between Pairs: 8.1‐m Pairs within Solid

1.40 1.20 1.00 g/t

‐ 0.80

0.60 AU‐CMD192 Grade

0.40 Au AU‐CMR097 0.20 0.00 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 N°Pairs

Figure 14.3.29 Trend Plots – Au Grades

CERRO MARICUNGA TWIN HOLES IN SOLID CERRO MARICUNGA TWIN HOLES IN SOLID CMD192 & CMR097 ‐ SCATTER PLOT CMD192 & CMR097 ‐ Q‐Q PLOT 1.20 1.20 1.00 1.00

0.80 0.80

0.60 0.60 CMR097 CMR097 0.40 0.40

0.20 0.20

0.00 0.00 0.00 0.20 0.40 0.60 0.80 1.00 1.20 0.00 0.20 0.40 0.60 0.80 1.00 1.20

CMD192 CMD192

CERRO MARICUNGA TWIN HOLES IN SOLID CMD192 & CMR097 ‐ REL. DIFF. PLOT 150

100 %

0 DIFFERENCE 0.00 0.50 1.00 1.50 ‐50

RELATIVE ‐100

‐150 MEAN AU VALUE

Figure 14.3.30 Scatter, Q‐Q and Relative Difference Plots ‐ Au

Statistics and Graphs for CMD193 ‐ CMR129 ‐ Crux Zone The following comments are pertinent regarding data shown in Table 14.3.20 and Figures 14.3.31 and 14.3.32.  The T statistic (1.43) shows that there is no significant difference between means and the global bias is relatively; 8.86‐%.  The trend‐plot (Figure 14.3.31) shows different trends for both holes, although the overall RC and DDH means are close.  The scatter‐plot (Figure 14.3.32) has a large dispersion as shown by the low correlation coefficient (0.349) and a significant pair‐wise mean relative error (36.97%), even though the distance between pairs vary between 3.5‐m and 6.1‐m.  The Q‐Q plot shows that gold values below 0.6 g/t fall fairly close to the first bisector. Thereafter, DDH gold values are higher.

SUMMARY OF DATA Table 14.3.20 CMD193 CMR129 DIFFERENCE REL. VAR.

NUMBER 63 63 63 63 MINIMUM 0.03 0.10 ‐0.89 0.00 MAXIMUM 1.52 1.38 0.81 1.62 MEAN 0.673 0.613 0.06 0.14 STD. DEV. 0.32 0.26 0.33 T TEST 1.43 MEAN REL. ERR. 36.97 BIAS (%) 8.86 r 0.349

Down the Hole Trends ‐ CMD192 & CMR129 Maximum Distance between Pairs: 9.6‐m All Pairs

1.60 1.40 1.20

g/t 1.00 ‐ 0.80 AU‐CMD193

Grade 0.60

Au 0.40 AU‐CMR129 0.20 0.00 1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 N°Pairs

Down the Hole Trends ‐ CMD192 & CMR129 Maximum Distance between Pairs: 5.8‐m Pairs within Solid

1.60 1.40 1.20

g/t 1.00 ‐ 0.80 AU‐CMD193

Grade 0.60

Au 0.40 AU‐CMR129 0.20 0.00 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 N°Pairs

Figure 14.3.31 Trend Plots – Au Grades

CERRO MARICUNGA TWIN HOLES IN SOLID CERRO MARICUNGA TWIN HOLES IN SOLID CMD193 & CMR129 ‐ SCATTER PLOT CMD193 & CMR129 ‐ Q‐Q PLOT 1.40 1.40 1.20 1.20 1.00 1.00 0.80 0.80 0.60 0.60 CMR129 CMR129 0.40 0.40 0.20 0.20 0.00 0.00 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40

CMD193 CMD193

CERRO MARICUNGA TWIN HOLES IN SOLID CMD193 & CMR129 ‐ REL. DIFF. PLOT 200 150 % 100 50 0 DIFFERENCE

‐500.00 0.50 1.00 1.50 ‐100 RELATIVE ‐150 ‐200 MEAN AU VALUE

Figure 14.3.32 Scatter, Q‐Q and Relative Difference Plots ‐ Au

Statistics and Graphs for CMD196 ‐ CMR098 ‐ Crux Zone The following comments are pertinent regarding data shown in Table 14.3.21 and Figures 14.3.33 and 14.3.34.  The T statistic (‐1.24) shows that there is no significant difference between means, the global bias being ‐13.62‐%.  The trend‐plot (Figure 14.3.33) shows similar trends for both holes, except between30.0 to 50.0‐m depth, where RC gold values are much higher than DDH gold values.  The scatter‐plot (Figure 14.3.34) has a large dispersion as shown by the fairly low correlation coefficient (0.512) and a significant pair‐wise mean relative error (44.79%).  The Q‐Q plot shows that gold values below 0.8 g/t fall fairly close to the first bisector. Thereafter, RC gold values are higher.

SUMMARY OF DATA Table 14.3.21 CMD196 CMR098 DIFFERENCE REL. VAR.

NUMBER 63 63 63 63 MINIMUM 0.12 0.12 ‐2.78 0.00 MAXIMUM 4.72 4.49 2.62 1.14 MEAN 1.090 1.239 ‐0.15 0.20 STD. DEV. 0.90 1.02 0.95 T TEST ‐1.24 MEAN REL. ERR. 44.79 BIAS (%) ‐13.62 r 0.512

Down the Hole Trends ‐ CMD196 & CMR098 Maximum Distance between Pairs: 5.9‐m All Pairs

5.00 4.50 4.00 3.50 g/t

‐ 3.00 2.50 2.00

Grade AU‐CMD196 1.50 Au 1.00 AU‐CMR098 0.50 0.00 1 7 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97 103 109 115 121 N°Pairs

Down the Hole Trends ‐ CMD196 & CMR098 Maximum Distance between Pairs: 5.9‐m Pairs within Solid

5.00 4.50 4.00 3.50 g/t

‐ 3.00 2.50 2.00 AU‐CMD196 Grade 1.50

Au AU‐CMR098 1.00 0.50 0.00 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 N°Pairs

Figure 14.3.33 Trend Plots – Au Grades

CERRO MARICUNGA TWIN HOLES IN SOLID CERRO MARICUNGA TWIN HOLES IN SOLID CMR196 & CMR098 ‐ SCATTER PLOT CMR196 & CMR098 ‐ Q‐Q PLOT 4.00 4.00

3.00 3.00

2.00 2.00 CMR098 CMR098 1.00 1.00

0.00 0.00 0.00 1.00 2.00 3.00 4.00 0.00 1.00 2.00 3.00 4.00

CMD196 CMD196

CERRO MARICUNGA TWIN HOLES IN SOLID CMR196 & CMR098 ‐ REL. DIFF. PLOT 200 150 % 100 50 0 DIFFERENCE

‐500.00 1.00 2.00 3.00 4.00 ‐100

RELATIVE ‐150 ‐200 MEAN AU VALUE

Figure 14.3.34 Scatter, Q‐Q and Relative Difference Plots ‐ Au

Analyses of Twin Holes The analyses carried out in the previous sections showed a variable behavior; global biases vary from 8.86 (DDH higher than RC) to ‐55.03% (RC higher than DDH).

The analyses that follow show the overall behavior within the mineralized envelopes. The methodology is analogous to the one applied for individual sets of twin holes.

The following comments are made regarding statistics and graphical analyses (Table 14.3.22 and Figures 14.3.35 and 14.3.36).

 The T statistic is not significant (‐0.15) and the average gold grades for RC (0.545‐g/t) and DDH (0.542‐g/t) are very close being the overall bias ‐0.56%.

 The trend‐plots were replaced by a graph consisting of: o RC – DDH paired values were sorted from low to high according to the RC gold grades and plotted against an arbitrary sequence number ranging from 1 to 581 (total number of pairs). o DDH grades, as well as a ten‐term moving average were plotted against the same sequence number. This graph (Figure 14.3.35) shows that, according to the 10‐term moving average, DDH gold values vary around the sorted RC values for grades that fall between 0.4 and 0.5‐g/t Au, and that DDH gold values tend to be higher within the 0.0 – 0.4 g/t Au interval, and lower for grades above 0.5 g/t Au.

 The scatter‐plot (Figure 14.3.36) has a fairly large dispersion as shown by the correlation coefficient (0.602) and the pair‐wise mean relative error of 50.54%.

 The Q‐Q plot (Figure14.3.36) shows the following trends: o RC‐Au > DDH Au values in 0.003 to 0.4‐g/t range. o RC‐Au and DDH‐Au values ranging from 0.4 to 1.8‐g/t fall close to the first bisector. o RC‐Au > DDH Au for values between 1.8 and 3.0‐g/t. o DDH‐Au > RC‐Au values above 3.0‐g/t.

 The pair‐wise relative difference v/s mean grade plot with a 10‐term moving average (red line) shows a similar trend to that of the QQ plot.

SUMMARY OF DATA Table 14.3.22 ALL DDH ALL RC DIFFERENCE REL. VAR.

NUMBER 581 581 581 581 MINIMUM 0.01 0.00 ‐2.78 0.00 MAXIMUM 4.72 4.49 2.62 1.79 MEAN 0.542 0.545 0.00 0.26 STD. DEV. 0.55 0.52 0.48 T TEST ‐0.15 MEAN REL. ERR. 50.54 BIAS (%) ‐0.56 r 0.602

Sorted RC and DDH Gold Grades ‐ Pairs within Solid (Distance ≤ 10‐m

5.00 Moving 4.50 4.00 term ‐ 10

3.50 3.00 DDH

& 2.50

(g/t) 2.00

Average 1.50 Grades

1.00 0.50 Gold

RC 0.00 ‐ 1 51 101 151 201 251 301 351 401 451 501 551 DDH Number of pairs

Au‐DDH AU‐RC 10 per. media móvil (Au‐DDH)

Figure 14.3.35 Sorted RC Au Grades, DDH Au Grades and DDH 10‐term Moving Average

CERRO MARICUNGA ALL TWIN HOLES IN CERRO MARICUNGA ALL TWIN HOLES IN SOLID ‐ DIST ≤ 10m ‐ SCATTER PLOT SOLID ‐ DIST ≤ 10m ‐ Q‐Q PLOT 4.00 4.00

3.00 3.00 Holes Holes

RC RC

2.00 ‐ 2.00 ‐ (g/t) (g/t)

1.00 Au Au 1.00

0.00 0.00 0.00 1.00 2.00 3.00 4.00 0.00 1.00 2.00 3.00 4.00

Au (g/t) ‐ DDH Au (g/t) ‐ DDH

CERRO MARICUNGA ALL TWIN HOLES IN SOLID ‐ DIST ≤ 10m ‐ REL. DIFF. PLOT 250

% 150

50 DIFFERENCE

‐500.00 1.00 2.00 3.00 4.00

RELATIVE ‐150

‐250 MEAN AU VALUE

Figure 14.3.36 Scatter, Q‐Q and Relative Difference Plots – Au

Nugget Effect It is well known that theoretically the nugget effect is inversely proportional to the sample support (volume or weight).

The sample mass for diamond drillholes (DDH) and reverse circulation drillholes (RC) was calculated and is presented in the following table.

Type Diameter Diameter (cm) Length (cm) Density Weight (Kg) RC 5.5” 13.97 200 2.43 74.5 DDH HQ 6.35 200 2.43 15.4

The sample collection and preparation protocols are as follows:

Diamond drillholes: 1. Two meter core samples are cut lengthwise in two halves using a diamond saw. One half is kept in the core storage facility and the second half, weighing some 7.7 kg is sent for sample preparation and assaying. 2. The 7.7 kg sample is crushed to 10# (2.0 mm) by means of a jaw crusher. 3. A one kg sample split is obtained using a rotary divider. 4. The 1000 g sample is pulverized to 150# (0.106 mm). 5. Two 250 g and one 500 g envelopes are obtained by increments. One envelope is sent for 50‐g fire assay with AA finish.

Reverse circulation drillholes 1. One quarter of the approximately 75 kg sample is obtained on the field by means of a riffle splitter (approximately 19 kg). 2. The rest of the sample preparation protocol is basically the same as points 2 to 5 of the protocol used for diamond drillholes.

The inverse proportionality of the nugget effect to the sample mass would be true if the two samples were prepared and assayed in the same way, i.e. the complete sample were reduced to 10# and a 1000 split were obtained, pulverized and assayed. As the sample preparation protocols are quite different for the two kinds of samples, the nugget effects are no longer related and it is best to calculate them empirically. The nugget effects for DDH and RC samples were estimated as follows:

 All samples were 2.0 m in length.  Two meter samples were assigned individual coordinates using a GEMCOM routine.  Samples were selected using the following criteria: o Only samples within mineralized envelopes were used. o DDH and RC sample pairs separated by at most 10m were used.  Traditional variograms (with standardized sills) and (1‐correlograms) were calculated for each type of sample.  The lag distance used was 2.0 m with a lag tolerance of 1.0.  Average down hole variograms and (1‐correlograms) were calculated for both types of samples.

Results are presented in Figure 14.3.37, where the red experimental variogram corresponds to DDH and the black experimental variogram corresponds to the RC holes.

Figure 14.3.37 Twin Hole Experimental RC and DDH Variograms

The following conclusions can be derived from this analysis:

 The variogram shapes are similar for the two types of drillholes.  The nugget effects are practically identical for both types of drillholes and are on the order of 10% of the total sill, reflecting good short range continuity and very good sample preparation and assaying protocols.  Both types of drillholes are equivalent in quality and therefore they can be used jointly for resource estimation.

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14.4 Exploratory Data Analysis ‐ EDA This section contains a description of work carried out prior to the resource estimation process and includes:

 Database description.

 Analysis of sample lengths.

 Histograms and statistics of samples within each zone of the deposit North: LYNX (code 1), PHOENIX (code 2) and POLLUX (code 4), and South: CRUX (code 3) and outside the mineralized zones (code 5).

 Probability plots and outlier detection and treatment.

 Declustering.

Database Description The drillhole database consists of the following tables:

 Collar Table: Variables contained in this table are the following:

- DHID: Drillhole identification

- X: East collar coordinate

- Y: North collar coordinate

- Z: Collar elevation

 Survey Table: Variable within this table are:

- From: Beginning of the interval

- To: Ending of the interval

- Azi: Azimuth of the interval

- Dip: Dip of the interval

 Assay Table: This table contains the following variables:

- From: Initial point of the sample

- To: Final point of the sample

- Au_ppm: Gold grade in ppm

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 Specific Gravity Table: This table contains the following variables:

- From: Initial point of the core specimen

- To: Final point of the core specimen

- SG: Specific gravity of the core specimen (g/cc)

Compositing, Statistics, Outliers, Declustering and Estimation Domains Since sampling was carried out almost consistently every 2 meters, coordinates were assigned to the center of individual samples via a method available in Gemcom which preserves the original sample length. Figure 14.4.1 shows a scatter plot between sample length and gold values for all samples within the four mineralized envelopes. This figure shows that there are only 10 samples (out of 16,898) in which the sample length differs from 2.0 m. Furthermore, there is an almost complete lack of correlation between sample length and gold grades.

Figure 14.4.1 Sample Length vs. Gold Grades

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Since practically all the samples were 2.00 m long, it was decided to use the samples directly in the resource estimation rather than calculating equal length composites, thus avoiding unnecessary smoothing.

Table 14.4.1 shows basic sample statistics for each mineralized envelope as well as for some combinations thereof and also for the samples lying outside all mineralized envelopes (code 5).

Table 14.4.1 Basic Sample Statistics DECLUS Sector Code Variable Valid N Mean Median Min Max Q25 Q75 P95 P99 Std.Dev. MIN MAX Length (m) 3,244 2.000 2.000 1.100 3.000 2.000 2.000 2.000 2.000 0.025 Lynx 1 Au (g/t) 3,244 0.474 0.310 0.010 6.940 0.200 0.550 1.390 2.530 0.496 0.375 0.474 Length (m) 8,255 2.000 2.000 1.100 2.800 2.000 2.000 2.000 2.000 0.017 Phoenix 2 Au (g/t) 8,255 0.412 0.310 0.000 4.650 0.200 0.490 1.060 1.790 0.346 0.330 0.412 Length (m) 1,187 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 0.000 Pollux 4 Au (g/t) 1,187 0.339 0.270 0.000 2.660 0.180 0.400 0.780 1.390 0.260 0.312 0.339 Length (m) 12,686 2.000 2.000 1.100 3.000 2.000 2.000 2.000 2.000 0.019 North 1+2+4 Au (g/t) 12,686 0.421 0.310 0.000 6.940 0.200 0.500 1.120 1.990 0.385 0.340 0.421 Length (m) 4,212 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 0.000 Crux (S) 3 Au (g/t) 4,212 0.439 0.310 0.000 5.180 0.190 0.520 1.180 2.400 0.441 0.355 0.439 Length (m) 16,898 2.000 2.000 1.100 3.000 2.000 2.000 2.000 2.000 0.016 All Ore 1 to 4 Au (g/t) 16,898 0.425 0.310 0.000 6.940 0.200 0.500 1.130 2.120 0.400 0.350 0.425 Out 5 Au (g/t) 23,147 0.074 0.060 0.000 2.930 0.030 0.100 0.180 0.300 0.089 0.068 0.077

The following equal weighted histograms of gold grades are presented in this report:

Figure 14.4.2 – Lynx, Phoenix, Pollux and Crux zones, separately.

Figure 14.4.3 – North zone (Lynx + Phoenix + Pollux) and all zones combined.

Figure 14.4.4 – All samples lying outside the mineralized envelopes.

From Table 14.4.1 and the above mentioned figures, it is apparent that mean grades within the mineralized envelopes range from 0.339 to 0.474 g/t Au, while data lying outside the mineralized envelopes have a mean grade of 0.074 g/t Au. Furthermore, the means and the distributions of gold grades within the mineralized envelopes are very similar thus indicating that the four zones could be estimated as a single unit, however the North zone has a NW structural pattern while Crux has an almost EW pattern. It was decided, therefore, to estimate de North zone separately from Crux which corresponds to the Southern zone.

Of course, the area lying outside the mineralized envelopes was estimated separately in order to have an estimation of the dilution material even though the mean grade is almost negligible.

103

Figure 14.4.2 Equal weighted histograms for gold zones Lynx, Phoenix, Pollux and Crux

104

Figure 14.4.3 Equal weighted histograms for the North zone and all mineral envelopes

105

Figure 14.4.4 Equal weighted histogram for all samples outside the mineralized envelopes

The following gold grade log‐probability plots are presented: Figure 14.4.5 – Zones Lynx, Phoenix, Pollux and Crux separately.

Figure 14.4.6 – North zone (Lynx + Phoenix + Pollux) and all zones combined.

Figure 14.4.7 – All samples lying outside the mineralized envelopes.

106

Figure 14.4.5 Gold grades Log‐probability plots for gold zones Lynx, Phoenix, Pollux and Crux

107

Figure 14.4.6 Gold grades Log‐probability plots for the North zone and all mineral envelopes

108

Figure 14.4.7 Gold grades Log‐probability plot for all samples outside the mineralized envelopes

Log‐probability plots show reasonable linear trends except for very low values where a departure from log‐normality is observed. No obvious high grade outliers are apparent.

It is well known that isolated high grades (outliers) may cause overestimation during the kriging process. To avoid this effect, moderate high grades were “capped”. The capping grade was set to 3.5 g/t for the northern zone as well as the southern zone. This capping grade corresponds to the 99.83 and 99.90 percentiles respectively and was chosen since slight deviations from the linear trend are present. Grade capping was introduced to be slightly conservative and only affects 13 and 7 samples out of a total of 12.686 and 4.212 samples available in the Northern and Southern zones respectively. Outside the mineralized envelopes, a grade capping of 1.2 g/t, equivalent to the 99.87 percentile was used.

Cell Declustering It is well known that higher grade zones are more densely drilled than low grade zones. Therefore, equal weighted sample means usually produce a biased estimate of the global distribution average. These estimates are generally too high.

To avoid the effect of high grade clustering, the cell declustering technique was used. The following mean versus cell size graphs are presented:

109

Figure 14.4.8 – Zones Lynx, Phoenix, Pollux and Crux separately.

Figure 14.4.9 – Northern zone (Lynx + Phoenix + Pollux) and all zones combined.

Figure 14.4.10 – All samples lying outside the mineralized envelopes.

Figure 14.4.8 Cell Declustering for Lynx, Phoenix, Pollux and Crux zones separately

110

Figure 14.4.9 Cell declustering for the northern and all gold zones combined

111

Figure 14.4.10 Cell declustering for all samples lying outside the mineralized envelopes

It is very apparent that there is considerable high grade clustering effect.

The range of possible population average grades was obtained from these graphs and included as declustered minimum and maximum in the two right most columns of Table 14.4.1. Since kriging has a declustering effect, it is expected that the average grade of the blocks estimated by kriging for each domain should lie somewhere between the minimum and maximum values reported in Table 14.4.1.

This is used as a statistical validation procedure for the kriging model.

Kriging Domain Boundaries Hard kriging boundaries were used between all kriging domains since:

 There is an information gap of some 80 m between the Northern and the Southern zones. This gap is due to a fault running along section 800.

 There is a very abrupt decrease in gold grades between the mineralization lying inside the Northern and Southern grade envelopes and the material lying outside these grade envelopes. This gold grade decrease goes form above 0.3 g/t to below 0.1 g/t.

112

14.5 Variography Variography for the northern and southern zones was approached through the use of correlograms, since they are more stable than traditional variograms in the presence of outliers and mild trends that usually exist.

The estimation of the nugget effect was done calculating and plotting “down the hole” correlograms. Anisotropy was investigated through the calculation of directional variograms. Table 14.5.1 shows correlogram calculation parameters and Table 14.5.2 shows final correlogram models. Figure 14.5.1, Figure 14.5.2 and Figure 14.5.3 show experimental as well as fitted models for the northern and southern zones as well as the low grade zone lying outside the mineralized envelopes respectively.

Table 14.5.1 Cerro Maricunga Correlogram calculation parameters

Azi Azi ZONE Codes Dir Azi Dip Dip Dip Band ColorN° Lags Lag Lag Tol Tolerance Band Width Tolerance Width Horiz Major 0.0 90.0 999.0 0.0 15.0 15.0 Red 15 15.0 10.0 Northern 1, 2 & 4 Horiz Minor 0.0 90.0 999.0 9.0 15.0 15.0 Red 15 15.0 10.0 zone Vertical 0.0 90.0 999.0 -90.0 15.0 15.0 Black 15 15.0 10.0

Suthern Major (Y') 280 10 15 -66 10 15 Red 20 15.0 10.0 zone 3 Minor (Z') 280 15 25 24 10 25 Black 16 20.0 12.0 (Crux) Horz. (X') 10 10 20 0 10 20 Green 20 15.0 10.0 Horiz Major 0 90 999 0 15 15 Red 15 15.0 10.0 Outside 5 Horiz Minor 0 90 999 0 15 15 Red 15 15.0 10.0 Vertical 0 90 999 -90 15 15 Black 100 2.0 1.0

Table 14.5.2 Cerro Maricunga Correlogram modeling parameters

Sill 1 Sill 2 Sill 2 ZONE Codes Metal Dir Nugget Range 1 Range 2 Range 3 Type Type Type Hz (X) 20.0 60.0 Northern 1, 2 & 4 Gold Hz (Y)0.1 0.6 EXP 20.0 0.3 EXP 60.0 Zone Vert (Z) 60.0 130.0

Southern Major (Y') 80.0 150.0 150.0 Zone 4 Gold Minor (Z') 0.2 0.30 SPH 20.00.30 SPH 30.00.20 EXP 80.0 (Crux) Horz. (X') 20.0 25.0 25.0 Hz (X) 6.0 30.0 Out 5 GoldHz (Y) 0.1 0.5 SPH 6.00.4 EXP 30.0 Vert (Z) 6.0 150.0

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Figure 14.5.1 Lynx‐Phoenix‐Pollux (northern zone) correlogram model

Figure 14.5.2 Crux (southern zone) correlogram model

114

Figure 14.5.3 Correlogram model for low grade outside mineralized envelopes

Correlograms show that spatial continuity is somewhat limited but frequent for this type gold deposit. Correlograms rise sharply and practical ranges in the horizontal and vertical directions are of the order of 40 and 100‐meters respectively.

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14.6 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. Block model parameters are given below:  X Origin: 480,000  Y Origin: 7,011,600  Z Origin: 5,150 (origin at the top of the model)  Bearing: 45° (anti clockwise starting from x‐axis)  Plunge: 0°  Dip: 0°  Model Size X‐Axis: 2,000 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  Block Discretization: 3 x 3 x 3 (in X, Y and Z directions)

The most important variables of the model are:  Au: estimated Au grade in g/t  Density: Block density  Corrida: Au estimation pass  NN: number of samples used in Au estimation  Var Au: Au kriging variance  Categ: Resource classification category

Au Estimation Plan The grade estimation plan for Cerro Maricunga Project was carried out in four (4) passes. General settings are detailed below:  The search radii for the first kriging pass were set at approximately the variogram ranges that correspond to 90% of the total sill in each direction.  The search radii for the second and third kriging passes were set to 1.5 and 2.0 times the first kriging passes respectively.

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 The search radii for the fourth kriging pass were set quite large in order to avoid leaving too many blocks un‐estimated. The blocks estimated in the fourth pass were reported in the inferred category.  All the estimations were performed using the Ordinary Kriging method, including the low grade zone lying outside the mineralized envelopes.  No anisotropy rotation angles were used for search ellipsoid in the northern zone since only omni‐horizontal and vertical variograms were used. Search ellipsoid anisotropy rotation angles in line with the variogram anisotropy were used for the southern zone (280°, ‐66°, 0°)  Gold grade capping of 3.5 g/t and 1.2 g/t were used in the estimation of all mineralized zones and outside respectively, while high yield restriction was not used. The estimation plan parameters are shown in Table 14.6.1.

Table 14.6.1 Gold Estimation Plan parameters

Estimation Samples used Max Samples Search Radii Zone Pass / hole Min Max X Y Z 1 8 16 6 30 30 60 2 8 16 6 45 45 90 Northern 3 4 16 ‐ 60 60 120 4 4 16 ‐ 150 150 300 1 8 16 6 25 70 30 2 8 16 6 37.5 105 45 Southern 3 4 16 ‐ 50 140 60 4 4 16 ‐ 100 280 120 Out 1 4 16 ‐ 150 150 300

Statistics of gold mean grades and tonnages estimated in each kriging pass are shown in Table 14.6.2

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Table 14.6.2 Estimated Block Model Statistics Estim. Non Estim. Dec. Dec. Zone Pass Total Tons % Estim. Krig. Au Tonnes Tonnes Min Max 1 436,684,083 34,555,710 402,128,373 7.91% 0.472 Northern (Lynx, 2 402,128,373 98,336,584 303,791,789 30.43% 0.428 Phoenix 3 303,791,789 196,520,222 107,271,567 75.43% 0.359 0.340 0.421 &Pollux) 4 107,271,567 100,138,682 7,132,885 98.37% 0.313 Total 1 - 4 436,684,083 429,551,198 7,132,885 98.37% 0.373 1 104,175,012 14,525,279 89,649,733 13.94% 0.519 Southern 2 89,649,733 32,408,996 57,240,736 45.05% 0.393 Zone (Crux) 3 57,240,736 46,522,188 10,718,549 89.71% 0.314 0.355 0.439 4 10,718,549 10,659,161 59,388 99.94% 0.275 Total 1 - 4 104,175,012 104,115,624 59,388 99.94% 0.363 Total Out 1 7,644,982,531 2,802,302,815 4,842,679,716 36.66% 0.068 0.068 0.077

It can be seen that the percentage of estimated tonnages in the first 3 passes are 75.4% and 89.7% for the Northern and Sothern zones respectively, which is reasonable. Total estimated tonnage percentages in all passes amount to 98.4 and 99.9% for the mineralized zones respectively.

The total percentage of tonnage estimated outside the mineralized envelopes amounts to 36.7%.

The cumulative average grade of blocks estimated in successive kriging passes decrease due to clustering. However, for the northern zone, the mean grade of blocks estimated in the first three kriging passes (0.359 g/t) lies within the declustered mean range. This is true for blocks estimated in the first two kriging passes of the southern zone, as will be described with further detail in the following section.

14.7 Validations A series of block model validations were carried out. Details are given in sections below.

Global Bias As mentioned in previous sections, Au block grades were estimated using ordinary kriging in four passes. Additionally, declustered means obtained by nearest neighbor (NN) estimates were calculated. These consist of assigning to each block the gold value of the sample nearest to its centroid. It should be noted that this validation procedure was carried out for blocks that were estimated in the first three kriging passes that produced all the measured and indicated resources, as will be shown in Section 14.9.

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Global bias was assessed by comparing the means of the two estimates mentioned above. This validation was carried out within and outside the northern and southern mineralized envelopes. Results are shown in Error! Reference source not found.. For completeness, this table also shows the cell declustered mean range obtained earlier (Table 14.4.1, Table 14.6.2 and Figure 14.4.8 to Figure14.4.10).

It is well known that kriging produces declustering; therefore, comparison against other declustering techniques is appropriate. Results are presented in Table 14.7.1. It can be seen that there is very good agreement between the kriging and NN estimators for the northern zone. Furthermore, both estimators fall within the cell declustered mean range. Results are not so favorable for the southern zone, where the average of the kriging estimators is lower than the NN estimator and both estimators fall just outside the cell declustered mean range. Figure 14.7.1 shows a graphic representation of the data contained in Table 14.7.1.

Nearest neighbor (NN) estimates were not calculated for the low grade zone lying outside the mineralized envelopes.

Table 14.7.1 Global Bias Validation

Zone Krig Pass Total Tons Estim Tons Not Estim Tons % Estim Krig. Au Dec. Min Dec. Max Au NN Northern 1+2+3 436,684,083 329,412,516 107,271,567 75.4 0.359 0.340 0.421 0.351 Southern 1+2+3 104,175,012 93,456,463 10,718,549 89.7 0.314 0.355 0.439 0.348 Total Out 1 7,644,982,531 2,802,302,815 4,842,679,716 36.7 0.068 0.068 0.077

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Cerro Maricunga Global Validation ‐ Oct 2012 0.500 0.450 0.400 0.350 Grade 0.300 Krig Au 0.250 Gold

0.200 Dec. Min 0.150 Dec. Max

Average 0.100 Au NN 0.050 0.000 135 Geological Zone 1: Northern; 3: Southern; 5: Out

Figure 14.7.1 Au Global Bias

Drift Analysis Drift analyses were carried out only for measured plus indicated resources by comparing the average kriging estimated block grades against the average NN estimates along 50‐m slices in the X, Y and Z directions. These analyses were carried out for the Northern and Southern zones. Since the block model is rotated 45° NW, the slices are as shown in Figure 14.7.2 below.

Drift analyses graphs are shown in Figure 14.7.3 to Figure 14.7.5 for the whole deposit, Figure 14.7.6 to Figure 14.7.8 for the Northern zone and Figure 14.7.9 to Figure 14.7.11 for the Southern zone in the different directions respectively.

These graphs show that kriging estimates (blue) have very similar behavior to the declustered or NN estimates (red) since both curves follow very similar trends and therefore, results can be considered satisfactory.

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Figure 14.7.2 Slice Rotation according to Block Model

Drift Analisys ‐ Total Deposit ‐ Elevation 0.45

0.40

0.35

AU Au Kriging 0.30 Au NN

0.25

0.20 4200 4400 4600 4800 5000 5200 Level

Figure 14.7.3 Drift Analysis – Whole deposit (Elevation)

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Drift Analisys ‐ Total Deposit ‐ Along x 0.50

0.45

0.40

0.35

0.30 AU Au Kriging 0.25 Au NN

0.20

0.15

0.10 478800 479000 479200 479400 479600 479800 480000 X Coordinate

Figure 14.7.4 Drift Analysis – Whole deposit (Along X)

Drift Analisys ‐ Total Deposit ‐ Along Y 0.90

0.80

0.70

0.60

0.50 AU Au Kriging 0.40 Au NN

0.30

0.20

0.10 7012000 7012500 7013000 7013500 7014000 7014500 Y Coordinate

Figure 14.7.5 Drift Analysis – Whole deposit (Along Y)

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Drift Analisys ‐ Lynx + Phoenix + Pollux ‐ Along Level 0.45

0.40

0.35

AU Au Kriging 0.30 Au NN

0.25

0.20 4200 4300 4400 4500 4600 4700 4800 4900 5000 5100 Level

Figure 14.7.6 Drift Analysis – Northern Zone (Elevation)

Drift Analisys ‐ Lynx + Phoenix + Pollux ‐ Along x 0.50

0.45

0.40

0.35

0.30 AU Au Kriging 0.25 Au NN

0.20

0.15

0.10 478800 479000 479200 479400 479600 479800 480000 X Coordinate

Figure 14.7.7 Drift Analysis – Northern Zone (Along X)

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Drift Analisys ‐ Lynx + Phoenix + Pollux ‐ Along Y 0.90

0.80

0.70

0.60

0.50 AU Au Kriging 0.40 Au NN

0.30

0.20

0.10 7012500 7013000 7013500 7014000 7014500 Y Coordinete

Figure 14.7.8 Drift Analysis – Northern Zone (Along Y)

Drift Analisys ‐ Crux Zone ‐ Elevation 0.55

0.50

0.45

0.40

AU Au Krig 0.35 Au NN 0.30

0.25

0.20 4300 4400 4500 4600 4700 4800 4900 Level

Figure 14.7.9 Drift Analysis –Southern Zone (Elevation)

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Drift Analisys ‐ Crux Zone ‐ Along x 0.55

0.50

0.45

0.40

0.35 AU 0.30 Au Krig Au NN 0.25

0.20

0.15

0.10 479000 479200 479400 479600 479800 480000 X Coordinate

Figure 14.7.10 Drift Analysis –Southern Zone (Along X)

Drift Analisys ‐ Crux Zone ‐ Along Y 0.5

0.45

0.4

0.35

0.3 AU Au Krig 0.25 Au NN

0.2

0.15

0.1 7012400 7012600 7012800 7013000 7013200 Y Coordinate

Figure 14.7.11 Drift Analysis –Southern Zone (Along Y)

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Graphic Validation Four cross sections were prepared in order to compare block estimates against drill hole sample grades using the same color scheme. One section was chosen for each of the following zones: Lynx, Phoenix, Phoenix plus Pollux and Crux.

The locations of the four cross sections are depicted on Plan View 4650 and in Figure 14.7.12.

Figure 14.7.12 View of Cross Sections on Plan View 4650

Individual sections are shown in Figures 14.7.13 to Figure 14.7.16. The gold grade color scheme used for the sections is shown in Table 14.7.2. Generally, drill hole high and low grade zones are well reproduced in the block model. Results were considered satisfactory.

Table 14.7.2 Color Scheme Used for Cross Sections Gold Grade Interval Color From To 0.00 0.15 Blue 0.15 0.30 Green 0.30 0.50 Yellow 0.50 1.00 Orange 1.00 100.00 red

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Figure 14.7.13 Lynx Cross Section (2150)

Figure 14.7.14 Phoenix Cross Section (1550)

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Figure 14.7.15 Pollux Cross Section (1050)

Figure 14.7.16 Crux Cross Section (550)

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14.8 Specific Gravity Model A total of 391 10‐cm core specimens were tested for specific gravity via the wax coated method. All core specimens were photographed and described in detail for future use.

Current available data does not allow determining which geological parameters control densities, such as lithology and/or alteration, therefore, it was decided to estimate block densities for the same groups used in the resource estimation; Lynx‐Phoenix‐Pollux (1+2+4), and Crux (3) using the inverse distance method.

Statistics and distribution of specific gravity determinations are shown in Table 14.8.1 and Figure 14.8.1.

Table 14.8.1 Statistics – Specific Gravity Determinations SPECIFIC GRAVITY DETERMINATIONS ZONE N° Specimens Mean Minimum Maximum STD Lynx 92 2.38 1.95 2.69 0.18 Phoenix 189 2.44 2.05 2.72 0.13 Crux 110 2.46 2.13 2.69 0.13 Total 391 2.43 1.95 2.72 0.15

Specific Gravity Determinations: Lynx (1) ‐ Phoenix (2) ‐ Crux (3) 2.80 2.70

) 2.60 3 2.50 (g/cm 2.40 2.30 Gravity

2.20 2.10

Specific 2.00 1.90 1.80 0123

ZONE

SG Determinations Means

Figure 14.8.1 Distribution of Specific Gravity Values (Lynx=1, Phoenix=2, Crux=3)

Estimation parameters used for specific gravity are shown in Table 14.8.2. General considerations are:

 Specific Gravity was estimated using Inverse Distance Squared.

 Specific gravity was estimated for each group with two passes.

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 Flat ellipsoids were used in order to avoid vertical drift.

Table 14.8.2 Specific Gravity Estimation Plan

ESTIMATION PLAN SPECIFIC GRAVITY ‐ INVERSE DISTANCE SQUARED

Search Radii N° of Samples ZONE Code Profile‐ID X Y Z Min Max DENS124_1 200 200 100 1 12 Lynx‐Phoenix‐Pollux 1, 2,4 DENS124_2 1000 1000 1000 1 8 DENS3_1 200 200 100 1 12 Crux 3 DENS3_2 1000 1000 1000 1 8

Out 5 Global mean assigned for dilution purposes: SG = 2.439

14.9 Resource Categorization Resource categorization consists of assigning categories of measured, indicated and inferred to the estimated blocks within the block model. Obviously, 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, the following statistical approach was used. This approach is considered to be acceptable with the Canadian NI‐43‐101 Code: . Possible annual production grade and tonnage should be known with an error of  15% with 90% confidence in order for the resource to be classified as indicated. . Possible quarterly production should be known with an error of  15% with 90% confidence in order for the resource to be classified as measured. Using these guidelines, idealized blocks approximating quarterly and annual production targets 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. Two independent loading points were assumed to obtain the final confidence limits. These are expressed as percentages and are given by the following expression (assuming errors to be normally distributed):

90% Central Limit = 1.646 * 100 * SQRT [(Kriging Variance * Variance / Mean ^2) [14.9.1 Equation]

Grid spacing which produced confidence limits less than 15.0 percent were selected as the basis for the classification scheme. A production target of 60,000 tonnes per day was recommended for this analysis. Other parameters are shown Table 14.9.1.

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Table 14.9.1 Additional Data used for Resource Categorization Bench height 10 m Production block height 20 m Average Density 2.44 ton/m3 N° of Independent Loading Points 2 Tonnes/Day 60,000

Drilling grids of 50 x 50 m and 50 x 100 m were used. Samples along the drill holes were located every 2.0 m. The 50 x 100 m grid used was similar to the actual drilling grid used in the exploration campaigns: drill hole lines were oriented in an N‐E direction, were spaced every 50 m and drill holes within the lines were separated every 100‐m. . All drillholes were bored with a 60° dip angle. As an example, Figure 14.9.1 and Figure 14.9.2 show the sample data used for the 50 x 100‐m grid and a production level of 60,000 tonnes per day. The yearly (blue) and quarterly (red) production blocks are also shown.

Figure 14.9.1 50 x 100m Drilling Grid for 60,000 Tonnes / Day-Plan View

60000 tons/year 50 x 100 m grid - Trimestral y Anual

1000.0

900.0

800.0

700.0

600.0

Y 500.0

400.0

300.0

200.0

100.0

0.0 0.0 100.0 200.0 300.0 400.0 500.0 X

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Figure 14.9.2 50 x 100m Drilling Grid for 60,000 Tonnes / Day – Vertical View

60000 tons/year 50 x 100 m grid - Trimestral y Anual

X 0.0 100.0 200.0 300.0 400.0 500.0 0

Z 15

A single ordinary kriging calculation was performed for each block size and drilling grid. The kriging variance was calculated in each case and the 90% central confidence limits were calculated using Equation 14.9.1. Results for the Northern and Southern zones are presented in Table 14.9.2, Figure 14.9.3 and Figure 14.9.4 for annual and quarterly production targets which correspond to measured and indicated resources respectively. These graphs also show the 15% relative error threshold.

Table 14.9.2 Kriging Errors for 50 x 50 and 50 x 100 grids

Drilling Production N° N° Loading Corrected Descrpcion Period Var. Krig. Mean Variance Error % Grid Block size Samples Points Kriging Variance Northern 50 x 50 Annual 335 x 670 x 20 2448 2.849046E-03 1.197544E-03 5.69 (Zone Lync, 50 x 100 Annual 335 x 670 x 20 1360 5.945951E-03 2.499271E-03 8.22 2 0.421 0.149 Phoenix & 50 x 50 Quarter 167 x 335 x 20 680 9.388782E-03 3.946402E-03 10.33 Pollux) 50 x 100 Quarter 167 x 335 x 20 408 2.053261E-02 8.630506E-03 15.28 50 x 50 Annual 335 x 670 x 20 2448 4.054444E-03 2.045935E-03 7.44 Southern 50 x 100 Annual 335 x 670 x 20 1360 8.474137E-03 4.276181E-03 10.76 2 0.439 0.195 Zone (Crux) 50 x 50 Quarter 167 x 335 x 20 680 1.491420E-02 7.525936E-03 14.27 50 x 100 Quarter 167 x 335 x 20 408 2.978185E-02 1.502838E-02 20.17

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Cerro Maricunga - Envolvente 150 ppb Anual (Indicado)

Error Relativo Error Relativo % 5

0 50 x 50 50 x 100

Malla de Sondajes

Northern Zone Southern Zone

Figure 14.9.3 Relative Error v/s Drilling Grid – Indicated Resources

Cerro Maricunga - Envolvente 150 ppb Trimestral (Medido)

10 Error Relativo Error Relativo % 5

0 50 x 50 50 x 100

Malla de Sondajes

Northern Zone Southern Zone

Figure 14.9.4 Relative Error v/s Drilling Grid – Measured Resources

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Table 14.9.2, Figure 14.9.3 and Figure 14.9.4 show that:

 Drilling grids of 50 x 100 m or 50 x 50 m are sufficient to define indicated resources for a large daily production rate (60,000 tonnes).  A drilling grid of 50 x 100‐m is not sufficient for defining measured resources, however a 50 X 50‐m grid would be appropriate. The following procedure was developed in order to “paint” the 10 x 10 x 10 m blocks that were estimated within a 50 x 50 m drilling grid (measured resources) or 50 x 100 m grid (indicated resources). o Plans and sectiond showing estimated blocks and their kriging estimation variances were inspected. o The highest kriging estimation variances encountered in zones drilled using approximate 50 x 50 m grids were noted for the Northern and Southern zones. o The procedure was repeated considering zones drilled using approximate 50 x 100 m grids.

The kriging variances determined are shown in Table 14.9.3.

Table 14.9.3 Kriging Estimation Variances for 50 x 50 and 50 x 100 grids Kriging Variance for passes 1 to 3 Category Northern Southern

Measured 0.00 ‐ 0.35 0.00 ‐ 0.45 Indicated 0.35 ‐ 0.60 0.45 ‐ 0.75 Inferred > 0.60 > 0.75

Finally, blocks estimated with kriging variances within the ranges shown in Table 14.9.3 were categorized accordingly. All blocks estimated in the fourth kriging pass were reported as inferred.

Results of the resource categorization procedure are shown graphically in the same cross sections considered in Section 14.7.3, shown in Figure 14.7.12. The four cross sections are shown in to Figure 14.9.8). Yellow and green colored blocks represent measured plus indicated and inferred categories respectively.

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Figure 14.9.5 Lynx Resource Categorization Cross Section (2150)

Figure 14.9.6 Phoenix Resource Categorization Cross Section (1550)

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Figure 14.9.7 Phoenix plus Pollux Resource Categorization Cross Section (1150)

Figure 14.9.8 Crux Resource Categorization Cross Section (550)

14.10 Resource Tabulation Measured, indicated, measured plus indicated and inferred resources for Lynx, Phoenix, Crux and Pollux are shown in Table 14.10.1.

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Table 14.10.1 Maricunga Project Geological Resources - September 2012 Cut‐Off MEASURED INDICATED M & I INFERRED Au g/t Au g/t Mtonnes Au g/t Mtonnes Au g/t Mtonnes Moz Au Au g/t Mtonnes Moz Au LYNX ZONE 0.00 0.45 14.640 0.43 48.803 0.44 63.442 0.889 0.37 45.352 0.535 0.10 0.45 14.637 0.43 48.797 0.44 63.435 0.889 0.37 45.352 0.535 0.20 0.47 13.517 0.45 45.564 0.46 59.080 0.864 0.39 40.234 0.506 0.30 0.58 9.060 0.55 30.784 0.55 39.844 0.710 0.54 19.564 0.343 0.40 0.71 5.800 0.66 19.944 0.67 25.744 0.554 0.69 11.531 0.256 0.50 0.83 4.033 0.76 13.545 0.77 17.578 0.436 0.80 7.970 0.205 0.60 0.92 2.976 0.86 9.036 0.88 12.012 0.339 0.88 6.012 0.170 0.70 1.03 2.156 0.97 5.946 0.99 8.102 0.257 0.96 4.471 0.138 0.80 1.15 1.514 1.10 3.854 1.11 5.368 0.192 1.09 2.747 0.096 PHOENIX ZONE 0.00 0.40 32.426 0.40 92.284 0.40 124.709 1.594 0.35 96.387 1.089 0.10 0.40 32.409 0.40 92.264 0.40 124.673 1.594 0.35 96.297 1.089 0.20 0.42 29.794 0.41 86.510 0.41 116.305 1.547 0.37 85.466 1.029 0.30 0.50 20.150 0.49 57.591 0.49 77.741 1.235 0.45 52.801 0.766 0.40 0.61 12.018 0.60 33.455 0.60 45.473 0.877 0.60 22.618 0.434 0.50 0.73 7.053 0.70 19.467 0.71 26.521 0.606 0.72 12.406 0.288 0.60 0.84 4.382 0.81 11.848 0.82 16.230 0.426 0.81 8.134 0.213 0.70 0.95 2.873 0.92 7.042 0.92 9.916 0.295 0.92 4.984 0.148 0.80 1.06 1.803 1.03 4.251 1.04 6.053 0.202 1.03 3.109 0.103 CRUX ZONE 0.00 0.42 14.393 0.38 44.509 0.39 58.902 0.738 0.33 45.273 0.478 0.10 0.42 14.361 0.38 44.482 0.39 58.844 0.738 0.33 45.024 0.478 0.20 0.45 12.826 0.40 41.319 0.41 54.145 0.712 0.36 38.210 0.440 0.30 0.54 8.814 0.48 26.472 0.49 35.287 0.560 0.46 19.579 0.292 0.40 0.66 5.465 0.60 13.915 0.62 19.381 0.383 0.59 9.769 0.184 0.50 0.79 3.362 0.73 7.576 0.75 10.938 0.262 0.73 4.960 0.116 0.60 0.92 2.147 0.88 4.217 0.89 6.364 0.183 0.90 2.561 0.074 0.70 1.06 1.439 1.01 2.682 1.03 4.121 0.136 1.04 1.671 0.056 0.80 1.18 1.042 1.13 1.827 1.15 2.869 0.106 1.15 1.209 0.045 POLLUX ZONE 0.00 0.35 5.168 0.34 17.024 0.34 22.192 0.243 0.30 84.601 0.805 0.10 0.35 5.168 0.34 17.024 0.34 22.192 0.243 0.30 84.601 0.805 0.20 0.38 4.274 0.37 14.134 0.37 18.407 0.221 0.34 62.428 0.679 0.30 0.46 2.708 0.46 8.295 0.46 11.003 0.162 0.44 28.793 0.409 0.40 0.60 1.251 0.58 3.927 0.59 5.178 0.097 0.55 13.914 0.244 0.50 0.73 0.692 0.69 2.190 0.70 2.881 0.065 0.65 6.951 0.145 0.60 0.84 0.429 0.81 1.223 0.81 1.652 0.043 0.79 3.029 0.077 0.70 0.93 0.290 0.90 0.779 0.91 1.069 0.031 0.90 1.719 0.050 0.80 1.01 0.201 0.95 0.572 0.97 0.773 0.024 1.00 1.069 0.034 TOTAL ZONE 0.00 0.41 66.627 0.40 202.619 0.40 269.246 3.464 0.33 271.613 2.908 0.10 0.41 66.576 0.40 202.567 0.40 269.143 3.464 0.33 271.275 2.907 0.20 0.44 60.411 0.41 187.526 0.42 247.937 3.344 0.36 226.338 2.654 0.30 0.53 40.733 0.50 123.141 0.51 163.874 2.667 0.47 120.738 1.810 0.40 0.64 24.535 0.61 71.241 0.62 95.776 1.912 0.60 57.832 1.118 0.50 0.77 15.140 0.72 42.778 0.74 57.919 1.370 0.73 32.286 0.754 0.60 0.88 9.935 0.84 26.324 0.85 36.259 0.990 0.84 19.737 0.535 0.70 1.00 6.758 0.95 16.449 0.96 23.208 0.719 0.95 12.845 0.392 0.80 1.12 4.560 1.07 10.503 1.08 15.063 0.524 1.06 8.134 0.278

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15.0 MINERAL RESERVE ESTIMATES As no economic studies have been completed for the Cerro Maricunga Project and as such no Mineral Reserves have been estimate.

16.0 MINING METHODS It is anticipated that an open pit mining may be applied at Cerro Maricunga since it is the appropriate method for this type of deposit.

17.0 RECOVERY METHODS The test work that has been conducted to date suggests that the gold recovery methods at Maricunga would be by 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.

18.0 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. 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. 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 for processing, one alternative that would have to be considered would be to buy the required water from a relatively nearby operation or to pipe water from the coast (an alternative that is being used by at a number of mining operations in Chile).

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.

19.0 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.

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20.0 ENVIRONMENTAL STUDIES, PERMITTING OR COMMUNITY IMPACT

The following was extracted from the M. Easdon authored Atacama Technical Report dated October 7, 2011.

“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) tothe 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 72,000 m 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 favorably.”

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Figure 20.1 ‐ Cerro Maricunga Property Location Relative to National Parks

Taken from Arcadis, 2011

21.0 CAPITAL AND OPERATING COSTS No economic analysis has been undertaken on the Maricunga deposit. Atacama is presently undertaking to complete a Preliminary Economic Assessment on the Maricunga deposit.

22.0 ECONOMIC ANALYSES No economic analysis has been undertaken on the Maricunga deposit. Atacama is presently undertaking to complete a Preliminary Economic Assessment on the Maricunga deposit.

23.0 ADJACENT PROPERTIES Figure 23.1 depicts properties/projects which are near to Maricunga and for which brief summaries of reserves/resources are provided below. The author is unable to verify the following reserves/resources information and the reserves/resources noted and the related mineralization 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, as at Dec. 31 2011: 2.76 million ounces of gold contained in 149.4 million tonnes averaging 0.57 g/t Au of measured

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and indicated resources; and 620,000 ounces of gold contained in 37.9 million tonnes averaging 0.5 g/t Au as inferred resources (source: www.yamana.com). La Coipa Mine (Kinross): Kinross has published, as at Dec. 31, 2011, proven and probable reserves 15.3 million tonnes at a grade of 1.36 g/t Au and 40.8 g/t Ag for 0.67 million ounces of gold and 20.0 million ounces of silver. Measured and indicated resources stand at 16.8 million tonnes grading 1.07 g/t Au and 33.9 g/t Ag for 0.58 million ounces of gold and 18.3 million ounces of silver (source: www.kinross.com). Maricunga Mine (Kinross): As at Dec. 31, 2011, Kinross as proven and probable reserves of 272.2 million tonnes grading 0.68 g/t Au containing 5.9 million ounces of gold. Measured and indicated resources stand at 202.1 million tonnes grading 0.58 g/t Au for 3.8 million ounces of gold (source: www.kinross.com). Marte‐Lobo Project (Kinross): Kinross has published, as at Dec. 31, 2011, proven and probable reserves of approximately 6.0 million ounces of gold at an average grade of 1.14 g/t gold contained in 164.2 million tonnes and indicated resources of 908,000 ounces of gold contained in 34.1 million tonnes averaging 0.83 g/t Au (source: www.kinross.com). Volcan Project (Andina Minerals): Andina has published, as at Jan. 31, 2011, proven and probable reserves of 6.6 million ounces of gold at an average grade of 0.73 g/t Au contained in 282.6 million tonnes for the Volcan Project. Measured and indicated resources stand at 389.7 million tonnes at a grade of 0.71 g/t for an additional 8.8 million ounces of gold (source: www.andinaminerals.com).

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Figure 23.1 Properties Adjacent to the Maricunga Project

drafted by SBX

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24.0 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.

25.0 INTERPRETATION AND CONCLUSIONS

Exploration results obtained at the Maricunga Project suggest 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 June, 2012 has resulted in the estimation of Measured, Indicated and Inferred mineral resources. Main conclusions that stem out from exploration and resource estimation are as follow:

 Exploration work, database integrity, QA/QC, including twin‐hole analysis, were carried out in a professional manner.  The Atacama Pacific Geology Team, led by Mr. Alonso Cepeda, has discovered a new mineralized zone, the Pollux Zone, to the NE of the Phoenix Zone, which still has undiscovered potential. Current Pollux Zone measured and indicated resources at a cut‐off of 0.3 g/t Au amount to 11.0 million tonnes grading 0.46 g/t Au equivalent to 0.16 million ounces of gold along with 28.7 million tonnes in the inferred category at an average grade of 0.44 g/t Au equivalent to 0.41 million ounces of gold.  Final total results of the resource estimation at a 0.3 cut‐off grade amount to 163.9 million tonnes grading 0.51 g/ Au equivalent to 2.667 million ounces of gold in the measured and indicated category with a further 120.7 million tonnes estimated in the inferred category at an average grade of 0.47 g/t Au equivalent to 1.810 million ounces of gold.  Further drilling is warranted upgrade inferred resources to the measured and indicated categories.  Further drilling is warranted to further explore and define the Pollux Zone.

26.0 RECOMMENDATIONS

Main recommendations are as follow:  Proceed with all activities programmed for the 2012‐2013 season, which include: o 20,000‐m of DDH and RC drilling o Metallurgical test work o Preliminary Economic Assessment o Water Exploration  Carry out geotechnical studies involving tele‐viewer imaging in the deposit. These studies will be required for the pre‐feasibilty / feasibility stage (for slope stability, etc) studies.

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27.0 REFERENCES

Arcadis , May 2011; Minera Atacama Pacific Gold Chile Ltda; Declaración de Impacto Ambiental Prospección Mineras Cerro Maricunga (Environmental Impact Statement); prepared on behalf of Minera Atacama Pacific Gold Chile Ltda.

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.

AMTEL, July 21, 2011; 4th Progress Report on Cerro Maricunga Ore Leach Testwork: Summary of BRT Results

AMTEL, Dec, 2011; Evaluation of 2011 Leach Test of 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 ProyectoAurifero 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.

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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; unpublishedinternalmemorandum, Quebrada Larga; ComincoTeck.

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.

GeoexploracionesLtda, May, 2003; VolcanCopiapó Geology and Mineral Potential, Maricunga District, Chile: Unpub. Report prepared for MineraCameco 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 VolcanJuncalito, Tercera Región, Chile.

Hedenquist, J.W., 2010; Observations on drill core from CMDD001, 004, 008. Ojo de Maricunga, Region III, Region de Atacama, Chile; ReportpreparedforAtacamaPacific 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.

Laboratorio PLENGE, Aug 24, 2011; Investigacion Metalurgica No., 8300‐08 (Rev.1)

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.

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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 VolcanCopiapó 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.

Ortuzar, A, July. 2011; Legal Opinion on the Status of the Cerro Maricunga Concessions; prepared by Cruzát, Ortúzar, &MacKenna, Baker McKenzie International, on behalf of Atacama Minerals Inc.

Ribba, L., 2007; Informe de Avance No 1, Proyecto (Ojos de) Maricunga; preparedonbehalfof SBX Consultores Ltda.

Salas, O., et al, 1996; Geología y Recursos Minerales del Departamento de Arica, Provincia de Tarapacá; Instituto de Investigaciones Geológicas.

Sillitoe, R.H., 1991; Gold Metallogeny of Chile – An Introduction: Economic Geology, Vol. 86, No. 6 p 1187‐1205.

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.

Vergara, H. y Thomas, A.; 1984; Carta Geológica de Chile, escala 1:250,000, Hoja Collacagua, Región de Tarapacá, SERNAGEOMIN, No. 56.

Vila, T., et al, 1991; The Porphyry Deposit at Marte, Northern Chile; Economic Geology, Vol. 86, No. 6., pp. 1271‐1286.

Vila, T., et al, 1991; Gold‐rich Porphyry Systems in the Maricunga Belt, Northern Chile; Econ. Geology; A special Issue devoted to the Gold deposits of the Chilean Andes; Vol. 86, No. 6.

Viteri, E., Aug., 2010; Santa Teresa Gold Silver Prospect.

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28.0 CERTIFICATE OF AUTHOR

I, Eduardo Magri, do hereby certify that:

1. I am a consulting mining engineer to the mining and mineral exploration industry with an office at Don Carlos 2939, Office 613, Las Condes, Santiago, Chile; Tel: (56‐2) 3344226; Email: [email protected].

2. I obtained the following university a degrees:

a. Mining Engineer from the University of Chile, Santiago in 1970. b. MSc in Mining Engineering from Colorado School of Mines in 1972. c. Bachelor Honours in Operations Research form the University of South Africa in 1976. d. PhD in Mining Engineering from the University of the Witwatersrand in 1983. e. Citation in Applied Geostatistics from the University of Alberta, Canada in 2003.

3. I am a registered and active Fellow of the South African Institute of Mining and Metallurgy since 2004.

4. I have been continuously practicing my profession as a Mining Engineer and consultant since 1972.

5. 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:

a. El Salvador Mining Company, Chile (1970) and Union Corporation of South Africa (1972 – 1973) ‐ Production Mining Engineer in underground copper gold mines respectively.

b. Anglo American of South Africa (1973 ‐ 1976). Projects Leader in the Management Sciences Department working mainly in deep gold mines ‐mine production planning.

c. Anglovaal Limited (1976 ‐ 1986). Valuation and Systems Manager, responsible for estimation and disclosure of ore resources and reserves for Anglovaal´s Mining Companies listed in the Johannesburg Stock Exchange as well as other exploration projects.

d. University of Santiago Chile (September 1986 to 1995). Part-Time Professor of Geostatistical Resource Estimation.

e. University of Chile (1996 onwards). Part-Time Professor of Sampling and Geostatistical Resource Estimation.

f. Over thirty publications in the fields of resource estimation, sampling and mine planning. The Gold Medal of the S.A.I.M.M. was received in 1983.

g. National Mining Award “Alexander Sutulov” received from the Chilean Minster of Mines in 2010 for scientific research and contributions to the mining industry.

h. Mining Consultant (1986 to date). Resident in Chile, working mainly in sampling, quality control and geostatistical resource modeling and estimation. Relevant clients / projects have

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been: i. Codelco Chile ‐ Sampling, resource estimation and audits for Chuquicamata, Mina Sur, El Salvador, Andina and El Teniente Divisions.

ii. Antofagasta Minerals ‐ Sampling, resource estimation and audits for Carolina de Michilla, El Tesoro, Pelambres and Esperanza mines.

iii. Minera Escondida Limitada ‐ Resource estimation on an annual basis and sampling consultant.

iv. Compañía Minera El Indio ‐ Development and implementation of a geostatistical resource estimation system for Tambo Mines and implementation of the Data Mine system for resource estimation at El Indio Mine. v. TVX Gold Inc. ‐ Sampling consultant and resource estimation for several projects including: Asacha and Rodnikovoy in Russia, Skouries, Olympias, Madem Lakkos and Mavres Petres in Greece.

vi. Yamana Gold Inc. ‐ Sampling consultant and resource estimation on an annual basis for El Peñón and Alhue.

vii. Philex Corporation, Phipipinas – Sampling and ore resource estimation consultant for St. Tomas and Bulaguan, projects.

viii. Coeur d'Alene Mines Corporation – Sampling consultant for El Bronce de Petorca Mines and resource estimation for the Cerro Bayo mining district.

ix. Shell Chile ‐ Ore reserve estimation for long and short term planning at the Choquelimpie gold mine and feasibility study for the Las Luces copper deposit.

x. Anglo American, Chile. Evaluation of the Lobo and Marte epithermal gold deposits.

xi. Minerven, Venezuela. Evaluation of the Colombia gold deposits.

xii. Monarch Resources of Venezuela. Evaluation of the La Camorra gold deposit.

xiii. Compañía Minera Mantos de Oro. Ore reserve review of the Chimberos silver deposit and La Coipa gold, silver deposit.

xiv. Minera Valle del Cura, Argentina. Evaluation of the Chezanco gold deposit.

xv. Compañía Minera Doña Inés de Collahuasi. Complete ore reserve estimation for the Rosario, Ujina and Huinquintipa feasibility studies, Technical audits and sampling system studies.

xvi. Pegasus Minera de Chile Limitada. Ore resources estimation for the Pullalli gold project.

xvii. Amax Gold. Data base audits and sampling studies for the Guanaco and Refugio

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operations.

xviii. Noranda – Falconbridge. Technical audits for the Pachon and Antamina projects. Complete Resource calculations for the Pilar de Cobre (Mexico) and Fortuna de Cobre projects.

xix. Guanaco Compañía Minera. Resource estimation study for Cachinalito and Dumbo West structures.

xx. In conjunction with Dr. Francis Pitard, the analysis and design of sampling systems were undertaken for several clients such as: Inversiones Mineras del Inca's San Cristobal operation, Codelco Chile, Philex Corporation, Amax Gold, Minera Escondida Limitada, Compañía Minera Zaldivar, Compañía Minera Doña Inés de Collahuasi and TVX Gold INC.

xxi. Andina Minerals. Technical audits on sampling and data base integrity for the Volcan project in the Copiapó region. Investigation into drillhole grids for resource classification.

6. I have acted as Qualified Person for Andina Minerals but have no previous experience in filing a NI‐43‐101 report.

7. As at the effective date of this report and certificate (November 9th, 2012) 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. I certify that I have actively participated in the following activities: the design and implementation of the sample preparation protocol and QA/QC system; analyses of QA/QC and twin‐hole data; geostatistical analyses and geological resource estimation and categorization. Not being a professional geologist, I have relied entirely on other experts in all matters other than the ones mentioned above.

8. 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 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 certify that this Technical Report has been prepared in compliance with the foregoing Instrument and Format.

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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, November 9th, 2012, in Santiago, Chile.

______Eduardo Magri, PhD Mining Engineering

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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, Eduardo Magri, 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 9th day of November, 2012.

______Eduardo Magri, PhD Mining Engineering

Dated this 9th day of November, 2012.

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