TECHNICAL REPORT on the CERRO MARICUNGA GOLD PROJECT Region III CHILE prepared for ATACAMA PACIFIC GOLD CORPORATION 330 Bay Street, Suite 1210, Toronto, Ontario Canada M5H 2S8 October 7, 2011 Prepared By: Michael Easdon, Oregon Reg. Prof. Geologist Alcántara 1128, Depto. 905, Las Condes Santiago, Chile [email protected] TABLE OF CONTENTS 1.0 SUMMARY ........................................................................................................... 1 2.0 INTRODUCTION .................................................................................................. 5 3.0 RELIANCE ON OTHER EXPERTS ...................................................................... 7 4.0 PROPERTY DESCRIPTION AND LOCATION ..................................................... 8 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ............................................................................................... 13 6.0 HISTORY ........................................................................................................... 15 7.0 GEOLOGICAL SETTING AND MINERALIZATION ............................................ 15 7.1 PROPERTY GEOLOGY: ............................................................................. 16 8.0 DEPOSIT TYPE ................................................................................................. 33 9.0 EXPLORATION .................................................................................................. 34 10.0 DRILLING ........................................................................................................... 42 11.0 SAMPLE PREPARATION, ANALYSES AND SECURITY .................................. 47 12.0 DATA VERIFICATION ........................................................................................ 55 13.0 MINERAL PROCESSING AND METALLURGICAL TESTING ........................... 56 14.0 MINERAL RESOURCE ESTIMATES ................................................................. 60 14.1 Gold Mineralization Envelopes .................................................................. 63 14.2 Capping and High Yield Restrictions ......................................................... 69 14.3 Variography ............................................................................................... 71 14.4 Resource Estimation ................................................................................ 76 14.5 Validations ................................................................................................. 79 14.6 Resource Categorization ........................................................................... 81 14.7 Specific Gravity Determination .................................................................. 82 15.0 MINERAL RESERVE ESTIMATES .................................................................... 83 16.0 MINING METHODS ............................................................................................ 83 17.0 RECOVERY METHODS .................................................................................... 83 18.0 PROJECT INFRASTRUCTURE ......................................................................... 83 19.0 MARKET STUDIES AND CONTRACTS ............................................................ 83 20.0 ENVIRONMENTAL STUDIES, PERMITTING OR COMMUNITY IMPACT ........ 83 21.0 CAPITAL AND OPERATING COSTS ................................................................. 85 22.0 ECONOMIC ANALYSIS ..................................................................................... 86 23.0 MARKET STUDIES AND CONTRACTS ............................................................ 86 24.0 OTHER RELEVANT DATA AND INFORMATION .............................................. 88 25.0 INTERPRETATION AND CONCLUSIONS......................................................... 88 i 26.0 MARKET STUDIES AND CONTRACTS ............................................................ 89 27.0 REFERENCES ................................................................................................... 90 28.0 CERTIFICATE OF AUTHOR ............................................................................. 94 FIGURES Figure 1.1 Location Map of the Maricunga Gold Project and Major Mines of Chile ..... 3 Figure 4.1 Detailed Location Map of the Cerro Maricunga Gold Project ..................... 9 Figure 4.2 Cerro Maricunga Concession Map .......................................................... 10 Figure 7.1 Regional Geology and Deposits of the Maricunga Belt ............................ 19 Figure 7.2 Maricunga Property Geological Map ........................................................ 20 Figure 7.3 Legend for Figure 7.2 .............................................................................. 20 Figure 7.4 Cerro Maricunga – Geology of the Mineralized Zone .............................. 21 Figure 7.5 Schematic Cross Section Looking NS ..................................................... 22 Figure 9.1 Cerro Maricunga Trenching .................................................................... 36 Figure 9.2 Cerro Maricunga – Phoenix / Lynx / Crux Zones .................................... 37 Figure 9.3 Shaded Pole Reduced Ground Magnetics ............................................. 40 Figure 9.4 Interpretation of IP Results Overlain on Ground Magnetics .................... 40 Figure 9.5 IP – Resistivity Line 479000 .................................................................... 41 Figure 10.1 Maricunga Project – Drill Hole Plan ........................................................ 43 Figure 10.2 Cross Section 2011 NW – Lynx Zone .................................................... 44 Figure 10.3 Cross Section 2400 NW – Lynx Zone ..................................................... 45 Figure 10.4 Cross Section 1600 NW – Phoenix Zone ................................................ 46 Figure 11.1 DDH Sample Preparation Flow Diagram ................................................ 50 Figure 11.2 Maricunga QA/QC Geostatistics RC-DD Gold Pulp Duplicates .............. 54 Figure 14.1 Cerro Maricunga – Non scaled schematic level plan - Model ................. 64 Figure 14.2 3-D View of Cerro Maricunga’s Mineralized Zones ................................. 65 Figure 14.3 3-D Top Views – Mineralized Zones and Drillholes ................................ 66 Figure 14.4 Gold Grade Box Plot within Mineralized Envelopes ................................ 67 Figure 14.5 Gold Grade Log Probability Plot within Mineralized Envelopes .............. 67 Figure 14.6 Histogram – Au Grades – Lynx Zone ...................................................... 68 ii Figure 14.7 Box Plot – Au Grades – Lynx + Phoenix + Crux Zones, and Out ............ 69 Figure 14.8 Log Probability Plot – Lynx + Phoenix & Crux Zones and Out ................. 69 Figure 14.9 Down the hole indicator variogram – North and Central Zones (1+2) ...... 70 Figure 14.10 Down the hole indicator variogram – Outside ......................................... 71 Figure 14.11 Correlogram Map – Au-Lynx+Phoenix Zones (1+2) ............................... 72 Figure 14.12 Correlogram Map – Au-Crux Zone (3) .................................................... 72 Figure 14.13 Correlogram Map – Au-Outside Mineralization Envelopes (0) ................ 73 Figure 14.14 Down the hole correlogram – Au-Lynx + Phoenix Zones (1+2) .............. 73 Figure 14.15 Down the hole correlogram – Au-Crux Zones (3) ................................... 74 Figure 14.16 Down the hole correlogram – Au-Outside Mineralization Envelopes (0) . 74 Figure 14.17 Directional Variogram – Au-Lynx + Phoenix Zones (1+2) ....................... 75 Figure 14.18 Directional Variogram – Au-Crux Zones (3) ............................................ 75 Figure 14.19 Directional Variogram – Au-Outside Mineralization Envelopes (0) .......... 76 Figure 14.20 Lynx Zone Section .................................................................................. 79 Figure 14.21 Phoenix Zone Section ............................................................................. 80 Figure 14.22 Crux Zone Section .................................................................................. 80 Figure 20.1 Cerro Maricunga Property Location Relative to National Park ................ 85 Figure 23.1 Properties Adjacent to the Maricunga Project ......................................... 87 iii TABLES Table 1.1 Cerro Maricunga 2011-2012 Phase III Exploration Budget ........................ 2 Table 1.2 Cerro Maricunga Resource Estimate – August 2011 ................................. 4 Table 4.1 Maricunga Mining Concessions ............................................................... 11 Table 4.2 Cerro Maricunga Concessions ................................................................. 12 Table 9.1 Cerro Maricunga 2009 – 2010 Work Program Summary ......................... 34 Table 9.2 Cerro Maricunga 2010 – 2011 Work Program Summary ......................... 34 Table 11.1 Summary of QA/QC results for duplicate samples Au .............................. 54 Table 13.1 Preliminary Maricunga Bottle Roll Metallurgical Test Work (2008) ........... 56 Table 13.2 Summary of Column Leach Test Results ................................................. 57 Table 13.3 Metallurgical Test Results - 1.0 to 19.0 mm Grind Bottle Rolls ................ 58 Table 13.4 Summary of Bottle Roll Leach Test Results – August 2011 ..................... 59 Table 14.1 Maricunga Indicated and Inferred Resources..........................................