Braeval Oban Antamayo Technical Report NI-43-101 15 Jan 2014

NI 43-101 TECHNICAL REPORT For the
Antamayo Copper Skarn Project, Department of Ancash, Peru
For
150 York Street, Suite 410, Toronto, Ontario, M5H 3S5, Canada
Braeval Mining Corporation Oban Exploration Limited
By
STEWART D. REDWOOD, PhD, FIMMM, FGS

Consulting Geologist Effective date 15 January 2014 Signature date 21 February 2014
P.O. Box 0832-1784, World Trade Center, Panama, Republic of Panama. Tel: +507 392 5550. Email: mail@sredwood.com. Website: www.sredwood.com.
Braeval Mining Corporation Oban Exploration Limited Antamayo Copper Project, Peru, NI 43-101 Technical Report
S. D. Redwood 15 January 2014
DATE AND SIGNATURE PAGE

The effective date of this technical report, titled NI 43-101 Report for the Antamayo Copper Skarn Project, Department of Ancash, Peru is 15 January 2014.
Stewart D. Redwood, PhD, FIMMM, FGS 15 January 2014
CERTIFICATE OF AUTHOR
I, Stewart D. Redwood, PhD, FIMMM, FGS hereby certify that: 1. I am a Consulting Geologist with address at P.O. Box 0832-1784, World Trade Center, Panama City, Republic of Panama. 2. I am responsible for the preparation of the technical report titled NI 43-101 Report for the Antamayo Copper Skarn Project, Provinces of Huari and Antonio Raymondi, Department of Ancash, Peru (the Technical Report) dated 15 January 2014. 3. I graduated from Glasgow University with a First Class Honours Bachelor of Science degree in Geology in 1982, and from Aberdeen University with a Doctorate in Geology in 1986. 4. I am a Fellow in good standing of The Institute of Materials, Minerals and Mining, Number 47017. 5. I have over 30 years experience as a geologist working in mineral exploration, mine site geology, mineral resource and reserve estimations and feasibility studies on precious and base metal deposits in Latin America, the Caribbean, North America, Europe, Africa, Asia and Australia. In particular I have relevant experience of exploring skarn deposits, including participation in the resource drilling and feasibility study of the Antamina deposit. 6. 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 organization (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a Qualified Person for the purposes of NI 43-101. 7. I made a visit to the project on 14 to 17 December 2013. I made a previous visit to the project on 9 to 12 April 2012 and revised historical drill core on 1 August 2012. 8. I am responsible for all of the sections of the Technical Report. 9. I am independent of Braeval Mining Corporation, Oban Exploration Limited and Mitsui Mining & Smelting Co. Ltda. applying all of the tests in Section 1.5 of NI 43-101. 10. My only prior involvement with the property was to write a NI 43-101 Technical Report with effective date 3 August 2012. 11. I have read NI 43-101 and the Technical Report has been prepared in compliance with that instrument. 12. As of the date of the certificate, to the best of my knowledge, information and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading. 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 company files on their websites accessible by the public, of the Technical Report.
Stewart D. Redwood 15 January 2014 3
TABLE OF CONTENTS
DATE AND SIGNATURE PAGE ..............................................................................................2 CERTIFICATE OF AUTHOR ....................................................................................................3 TABLE OF CONTENTS ............................................................................................................4 List of Tables ..........................................................................................................................7 List of Figures .........................................................................................................................7 1 SUMMARY ...................................................................................................................... 10 1.1 Introduction ............................................................................................................... 10 1.2 Property Location ...................................................................................................... 10 1.3 Property Description .................................................................................................. 10 1.4 Accessibility, Climate, Local Resources, Infrastructure and Physiography ................. 11 1.5 History....................................................................................................................... 12 1.6 Geological Setting and Mineralization ....................................................................... 12 1.7 Deposit Types ............................................................................................................ 14 1.8 Exploration ................................................................................................................ 14 1.9 Drilling ...................................................................................................................... 14 1.10 Sample Preparation, Analysis and Security ................................................................ 15 1.11 Data Verification ....................................................................................................... 15 1.12 Mineral Processing and Metallurgical Testing ............................................................ 15 1.13 Mineral Resource Estimates ....................................................................................... 16 1.14 Adjacent Properties .................................................................................................... 16 1.15 Other Relevant Data and Information......................................................................... 16 1.16 Interpretation and Conclusions ................................................................................... 16 1.17 Recommendations ..................................................................................................... 17 2 INTRODUCTION ............................................................................................................. 20 2.1 Purpose of Report ...................................................................................................... 20 2.2 Terms of Reference.................................................................................................... 20 2.3 Sources of Information .............................................................................................. 20 2.4 Personal Inspection ................................................................................................... 21 2.5 Abbreviations ............................................................................................................ 21 3 RELIANCE ON OTHER EXPERTS ................................................................................. 24 4 PROPERTY DESCRIPTION AND LOCATION .............................................................. 25 Property Location ...................................................................................................... 25 4.1 4.2 Property Description .................................................................................................. 26 4.2.1 Mining Rights ........................................................................................................ 26 4.2.2 Mitsui Option......................................................................................................... 29 4.2.3 Legal Framework ................................................................................................... 30 4.2.4 Royalties & Taxes .................................................................................................. 33 4.2.5 Environmental Regulations .................................................................................... 34 4.2.6 Permits Required for Exploration ........................................................................... 34 4.2.6.1 Environmental Impact Declaration ................................................................. 34 4.2.6.2 Legal Access and Surface Rights .................................................................... 35 4.2.6.3 Water Use Permit ........................................................................................... 35 4.2.6.4 Approval to Start Exploration ......................................................................... 36 4
4.2.7 Other Risk Factors ................................................................................................. 36 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRA-STRUCTURE AND PHYSIOGRAPHY .................................................................................................................... 37 5.1 Accessibility .............................................................................................................. 37 5.2 Climate ...................................................................................................................... 39 5.3 Local Resources and Infrastructure ............................................................................ 39 5.4 Physiography ............................................................................................................. 40 6 HISTORY ......................................................................................................................... 42 7 GEOLOGICAL SETTING AND MINERALIZATION..................................................... 48 7.1 Regional Geology ...................................................................................................... 48 7.2 Project Geology ......................................................................................................... 51 7.2.1 Stratigraphy ........................................................................................................... 51 7.2.1.1 Goyllarisquisga Group ................................................................................... 51 7.2.1.2 Jumasha Formation ........................................................................................ 52 7.2.1.3 Celendn Formation ........................................................................................ 53 7.2.2 Structure ................................................................................................................ 55 7.2.3 Intrusive Rocks ...................................................................................................... 55 7.2.4 Alteration............................................................................................................... 58 7.3 Mineralization ........................................................................................................... 60 7.3.1 Siete Zone .............................................................................................................. 62 7.3.2 Muki Zone ............................................................................................................. 62 7.3.3 Yanacocha Zone .................................................................................................... 63 7.3.4 Chupo and Yolvi Zones ......................................................................................... 63 7.3.5 Chequiacocha Zone ................................................................................................ 63 7.3.6 NW Zone ............................................................................................................... 63 7.3.7 Huinchos-Nena Zone ............................................................................................. 64 7.3.8 Flor de Cant Zone ................................................................................................ 64 7.4 Deep Targets ............................................................................................................. 64 8 DEPOSIT TYPES ............................................................................................................. 68 9 EXPLORATION ............................................................................................................... 71 9.1 Geological Mapping .................................................................................................. 71 9.1.1 Historical ............................................................................................................... 71 9.1.2 Oban ...................................................................................................................... 71 9.2 Geochemistry............................................................................................................. 71 9.2.1 Historical ............................................................................................................... 71 9.2.2 Oban ...................................................................................................................... 77 9.3 Geophysics ................................................................................................................ 82 9.3.1 Historical ............................................................................................................... 82 9.3.2 Oban ...................................................................................................................... 86 10 DRILLING .................................................................................................................... 93 10.1 Drill Program Description .......................................................................................... 93 10.2 Hole Descriptions ...................................................................................................... 98 10.2.1 ANT-13-001 ...................................................................................................... 98 10.2.2 ANT-13-002 .................................................................................................... 100 10.2.3 ANT-13-003 .................................................................................................... 102 5
10.2.4 ANT-13-004 .................................................................................................... 105 10.2.5 ANT-13-005 .................................................................................................... 108 10.3 Results ..................................................................................................................... 110 10.3.1 Copper ............................................................................................................. 110 10.3.2 Zinc ................................................................................................................. 110 10.3.3 Molybdenum, Silver, Gold, Lead and Bismuth ................................................. 111 11 SAMPLE PREPARATION, ANALYSIS AND SECURITY ....................................... 113 11.1 Historical Sampling ................................................................................................. 113 11.2 Oban Samples .......................................................................................................... 114 11.2.1 Rock Sample Collection and Security .............................................................. 114 11.2.2 Core Sample Collection and Security ............................................................... 114 11.2.3 Sample Preparation and Analysis ..................................................................... 116 11.2.3.1 CIMM - CERTIMIN ................................................................................ 116 11.2.3.2 AGQ Peru ................................................................................................ 116 11.2.3.3 ALS Minerals ........................................................................................... 117 11.2.4 Quality Assurance & Quality Control (QA-QC) ............................................... 117 11.2.4.1 Rock Samples ........................................................................................... 117 11.2.4.2 Core samples ............................................................................................ 122 11.3 QP Comment ........................................................................................................... 128 12 DATA VERIFICATION ............................................................................................. 129 13 MINERAL PROCESSING AND METALLURGICAL TESTING .............................. 132 14 MINERAL RESOURCE ESTIMATES ....................................................................... 132 15 ADJACENT PROPERTIES ........................................................................................ 133 16 OTHER RELEVANT DATA AND INFORMATION ................................................. 134 17 INTERPRETATION AND CONCLUSIONS .............................................................. 135 18 RECOMMENDATIONS ............................................................................................. 137 19 REFERENCES ............................................................................................................ 139 ANNEX 1: CERTIFICATE OF ANALYSIS OF CHECK SAMPLES .................................... 143
List of Tables
Table 1.1 Estimated budget to carry out Stage 1 exploration program at Antamayo Project. ..... 18 Table 1.2 Estimated budget to carry out Stage 2 exploration program at Antamayo. .................. 19 Table 2.1 List of abbreviations ................................................................................................. 23 Table 4.1 List of mining concessions and applications at the Antamayo Project as of December 2013. ................................................................................................................................. 27 Table 5.1 Road access to the Antamayo Project ........................................................................ 37 Table 6.1 List of historical drill holes at Antamayo project, 2002-2004. ................................... 44 Table 6.2 Summary of significant intervals of historical drill holes at Antamayo. ..................... 45 Table 9.1 Range of minimum and maximum values of rock and mine samples from Antamayo (367 samples). ................................................................................................................... 77 Table 10.1 Table of drill collars of Oban drill program, 2013 .................................................... 93 Table 10.2 Table of significant Cu intersections of Oban drill holes, 2013................................. 93 Table 10.3 Table of significant Zn intersections of Oban drill holes, 2013. ................................ 94 Table 10.4 Table of anomalous Ag intervals in Oban drill holes, 2013. ..................................... 95 Table 10.5 Table of anomalous Mo intervals in Oban drill holes, 2013. ..................................... 95 Table 12.1 Sample description and results of check sampling for selected elements at Antamayo Project. ............................................................................................................................ 131 Table 12.2 Comparison of check samples with original samples for selected elements. .......... 131 Table 18.1 Estimated budget to carry out Stage 1 exploration program at Antamayo Project. . 137 Table 18.2 Estimated budget to carry out Stage 2 exploration program at Antamayo. .............. 138
List of Figures
Figure 4.1 Location map of Antamayo Project, Department of Ancash, Peru ............................. 25 Figure 4.2 Plan of the mining concessions and applications at the Antamayo Project................. 28 Figure 5.1 Plan of road access to the Antamayo Project ............................................................. 38 Figure 5.2 General view of the Antamayo Project looking south from the NW Zone to Lake Chequiacocha at about 4,320 m altitude. ............................................................................ 41 Figure 5.3 View of Yanacocha Zone looking north from the Yolvi Zone. The peak is about 4,550 m. ............................................................................................................................ 41 Figure 6.1 Location map of historical drill holes (yellow) and Oban drill holes (blue) at Antamayo. ......................................................................................................................... 46 Figure 7.1 The regional geological setting of the Antamayo project.......................................... 49 Figure 7.2 The regional geological setting of the Antamayo project.......................................... 50 Figure 7.3 Stratigraphic column of the Cretaceous for the Departments of Lima and Ancash used by Angeles (2011) for the Antamayo Project. .................................................................... 51 Figure 7.4 The stratigraphy of the Jumasha Formation. ............................................................. 53 Figure 7.5 Geological Map of the Antamayo Project ................................................................. 54 Figure 7.6 Map of structures and intrusions at the Antamayo Project ......................................... 57 Figure 7.7 Map of alteration at the Antamayo Project ............................................................... 59 Figure 7.8 Diopside-garnet exoskarn with blebs of coarse chalcopyrite and pyrrhotite............... 61 Figure 7.9 Semi-massive chalcopyrite in garnet exoskarn. ......................................................... 61 7
Figure 7.10 Massive pyroxene exoskarn with disseminated pyrrhotite and minor chalcopyrite. . 61 Figure 7.11 Endoskarn in a quartz porphyry with green garnet. ................................................. 62 Figure 7.12 Schematic section of the Antamayo Project between Chequiacocha and Huinchos, showing geological interpretation and targets. ................................................................... 65 Figure 7.13 Ground magnetic data (reduced to the pole), with location of possible interpreted intrusive centers................................................................................................................. 66 Figure 7.14 Chargeability at 3,700 masl level, with locations of possible interpreted intrusive centers. .............................................................................................................................. 67 Figure 7.12 Exploration target model for buried Antamina-type skarn and porphyry at Antamayo. .......................................................................................................................................... 70 Figure 9.1 Geochemical map of copper in historical rock samples. ............................................ 73 Figure 9.2 Geochemical map of zinc in historical rock samples. ................................................ 74 Figure 9.3 Geochemical map of silver in historical rock samples. .............................................. 75 Figure 9.4 Geochemical map of molybdenum in historical soil samples. ................................... 76 Figure 9.5 Geochemical map for copper in rock chip samples taken by Oban. .......................... 78 Figure 9.6 Geochemical map for zinc in rock chip samples taken by Oban. .............................. 79 Figure 9.7 Geochemical map for silver in rock chip samples taken by Oban. ............................. 80 Figure 9.8 Geochemical map for molybdenum in rock chip samples taken by Oban. ................ 81 Figure 9.9 Total field, ground magnetic map. ............................................................................ 83 Figure 9.10 Map of chargeability contours at 100 m depth. ....................................................... 84 Figure 9.11 Map of resistivity contours at 100 m depth. ............................................................ 85 Figure 9.12 Map showing the location of the magnetic survey (2002) and the deep IP survey (2013)................................................................................................................................ 87 Figure 9.13 Location map of IP / resistivity survey lines, 2013. ................................................. 88 Figure 9.14 Oblique view looking NE of 3D block model of chargeability. ............................... 89 Figure 9.15 Location map of magnetic survey lines that were reprocessed by GeoMad in 2013. 90 Figure 9.16 Oblique view looking NW at 3D model of the magnetic susceptibility (0.0015 SI surface) with reference to topography. ............................................................................... 91 Figure 9.17 Chargeability / resistivity ratio superimposed on geology with geophysical targets outlined, and recommended drill holes............................................................................... 92 Figure 10.1 Plan of location of Oban drill holes, 2013 (blue) and historical drill holes (yellow). 96 Figure 10.2 Drilling hole ANT-13-005, December 2013. ........................................................... 96 Figure 10.3 Collar of hole ANT-13-002 with plastic tube and concrete base. A plaque will be added. ................................................................................................................................ 97 Figure 10.4 Cross section of hole ANT-13-001 showing Cu grades and geological interpretation. .......................................................................................................................................... 99 Figure 10.5 Cross section of hole ANT-13-002 showing Cu grades and geological interpretation. ........................................................................................................................................ 101 Figure 10.6 Cross section of hole ANT-13-003 showing Cu grades and geological interpretation. ........................................................................................................................................ 104 Figure 10.7 Cross section of hole ANT-13-004 showing Cu grades and geological interpretation. ........................................................................................................................................ 107 Figure 10.8 Cross section of hole ANT-13-005 showing Cu grades and geological interpretation. ........................................................................................................................................ 109 Figure 11.1 Scatter plots of CSRM Cu 177 for Cu and Mo in rock samples. ........................... 118 8
Figure 11.2 Scatter plot of CSRM Cu 177 for Ag in rock samples. .......................................... 119 Figure 11.3 Scatter plots of CSRM Oreas 65-a for Au and Ag in rock samples. ....................... 119 Figure 11.4 Scatter plots of CSRM Oreas 65-a for Cu in rock samples. ................................... 119 Figure 11.5 Scatter plots of CSRM Oreas 504b for Cu and Mo in rock samples. ..................... 120 Figure 11.6 Scatter plots of CSRM Oreas 504b for Ag and Au in rock samples. ...................... 120 Figure 11.7 Scatter plot of coarse blanks for Cu and Mo for in rock samples. .......................... 121 Figure 11.8 Scatter plot of field duplicates of rock samples for Cu. ......................................... 122 Figure 11.9 Scatter plots of CSRM Oreas 501b for Cu and Mo in core samples. ...................... 123 Figure 11.10 Scatter plot of CSRM Oreas 501b for Au and Ag in core samples. ...................... 123 Figure 11.11 Scatter plots of CSRM Oreas 502b for Cu and Mo in core samples. .................... 123 Figure 11.12 Scatter plots of CSRM Oreas 502b for Au and Ag in core samples. .................... 124 Figure 11.13 Scatter plots of CSRM Oreas 504b for Cu and Mo in core samples. .................... 124 Figure 11.14 Scatter plots of CSRM Oreas 504b for Au and Ag in core samples. .................... 124 Figure 11.15 Scatter plots of coarse blank BC-8011-13 for Cu and Mo in core samples........... 125 Figure 11.16 Scatter plots of coarse blank BC-8011-13 for Au and Ag for core samples. ........ 125 Figure 11.17 Scatter plots of fine blank BF-8011-13 for Cu and Mo for core samples. ............ 126 Figure 11.18 Scatter plots of fine blank BF-8011-13 for Au and Ag for core samples. ............. 126 Figure 11.19 Scatter plots of core duplicates for Cu and Mo. ................................................... 127 Figure 11.20 Scatter plots of core duplicates for Au and Ag. ................................................... 127 Figure 11.21 Scatter plots of fine duplicates of core for Cu and Mo......................................... 128 Figure 11.22 Scatter plots of fine duplicates of core for Au and Ag. ........................................ 128
1 SUMMARY
1.1 Introduction
This report was prepared by Dr. Stewart D. Redwood at the request of Braeval Mining Corporation (Braeval), a company registered in Ontario, Canada whose shares are listed for trading on the Toronto Stock Exchanges (TSX) Venture Exchange, and Oban Exploration Limited (Oban), a private company registered in Ontario. The terms of reference were to prepare a Technical Report as defined in Canadian Securities Administrators National Instrument 43101, and in compliance with Form 43-101F1 (Technical Report) and Companion Policy 43101CP for the Antamayo Project in Peru in connection with the proposed business transaction between Braeval and Oban announced on 21 February 2014. The effective date of the report is 15 January 2014.
1.2 Property Location

The Antamayo Project is located in the District of Cajay, Province of Huari; Districts of San Juan de Rontoy, Chingas and Mirgas, Province of Antonio Raymondi; and District of San Nicolas, Province of Carlos F. Fitzcarrald, all in the Department of Ancash, Republic of Peru at 9 12 00S, 77 05 25W. Altitudes in the project are between 4,200 and 4,700 m above mean sea level.
1.3 Property Description

The Antamayo Project consists of 23 mining rights with a total area of 16,700 hectares (ha) that are owned or controlled by Oban through its Peruvian subsidiary, Oban SAC. Fourteen of the mining rights, with a total area of 9,200 ha, are mining concessions granted to Oban. Two of the other mining rights, with a total area of 1,700 ha, are applications made by Oban. Seven of the mining concessions, with an area of 5,800 ha, are optioned by Oban SAC from Mitsui Mining & Smelting Co. Ltda., Sucursal del Per (Mitsui). The Mitsui option and assignment agreement was signed on 15 August 2011 and was signed as a public minute before a notary on 24 August 2011, with modifications dated 24 August 2012 and 10 June 2013. Oban SAC can earn 100% of the mining concessions in 36 months from the date of notarization. The First Option is to earn 70% by staged payments totalling US$1,000,000 over 36 months, of which US$400,000 has been paid to date. The Second Option is to earn an additional 30%, for a total of 100%, by payment of an additional US$9,000,000. Oban SAC has 90 days from the completion of the First Option to elect the Second Option. If Oban SAC exercises the First 10
Option but decides not to exercise the Second Option, then the parties will form a new company owned by Oban SAC 70% and Mitsui 30%. The mining concessions were assigned by Mitsui to Oban SAC for the duration of the option contract for a payment of US$100,000 plus staged investments totalling US$3,000,000 within 18 months of Oban obtaining the permit to start exploration activities, which was on 14 August 2013. Oban has spent US$$2,700,649 as of 31 December 2013 and thus has to spend an additional US$299,351 by 14 February 2015 to fulfill the investment commitment. Oban has all of the permits required to carry out exploration at Antamayo and they are valid for the planned time frame for the work program recommended in this report. These are the Environmental Impact Declaration which was approved on 19 February 2013, with a modification approved on 23 September 2013, and is valid until 23 February 2015; an agreement with the community to give Oban the right of legal access to the concessions; a water use permit granted on 7 August 2013; and approval from the General Directorate of Mining to start exploration dated 14 August 2013, with the starting date of exploration on 23 September 2013. There are no other known significant factors and risks that may affect access, title or the right or ability to perform work on the property.
1.4 Accessibility, Climate, Local Resources, Infrastructure and Physiography

The Antamayo Project is located 315 km north of Lima, and 60 km north east of Huaraz, the capital of the Department of Ancash. It is 514 km by road from Lima and takes about 10 to 12 hours to drive. The climate is characterized by distinct wet and dry seasons, with average annual precipitation of about 900 mm and a mean annual temperature of 5.6C. The Holdridge life zone is alpine rain tundra. The vegetation zone is wet pramo or high-altitude tall grassland transitional to Puna high-altitude grassland. Field work can be carried out all year round. The nearest communities are Flor de Cant, 4 km to the south, and Sharco, 7 km to the west. Supplies are bought in the nearest town which is Huari, 18 km to the southwest, or in Huaraz, a 6 hour drive. The land use is high altitude grazing. There is some subsistence agriculture at lower altitudes in the valleys. There several artisanal copper mines.
11
The nearest international airport is in El Callao, Lima. There is a surfaced airstrip at Anta, near Huaraz but it does not have scheduled flights. The nearest major port is El Callao, Lima. The project is located in the eastern side of the Western Cordillera of the Peruvian Andes. It is separated from the Pacific Ocean, 145 km to the west, by two mountain belts, the Cordillera Blanca and the Cordillera Negra. The project lies at an altitude of between 4,200 m and 4,700 m above mean sea level. The physiography is mountainous with steep slopes and deep valleys.
1.5 History
The project name means Copper (anta) River (mayu) in Quechua. There is evidence for historical small scale mining in a number of small adits. The project was explored by Mitsui and Teck Cominco Ltd from 1999 to 2004. They carried out geological mapping, geochemical sampling, a magnetic and induced polarization survey, and a total of 4,423.85 m in 23 diamond holes, with an average length of 192 m, in three programs. The best intersections were 7.75 m grading 5.36% Cu, 1.0% Zn and 73.7 g/t Ag, and 12.1 m grading 1.82% Cu and 2.31% Zn, but the holes were not sampled in their entirety. Mitsui made a historical mineral resource estimate in 2004 of 286,500 to 573,000 tonnes grading 3.59% Cu, 1.66% Zn and 52.08 g/t Ag, classified as a potential resource. This is not a category recognized by CIM and it is presumed to be equivalent to an inferred resource. The resource was not made to CIM / NI 43-101 standards. A qualified person has not done sufficient work to classify the historical estimate as a current mineral resource, and Oban is not treating this historical estimate as a current mineral resource. This resource has not been verified as a current mineral resource by Oban or by the author.
1.6 Geological Setting and Mineralization

Antamayo is located in the Maraon fold-thrust belt in the eastern part of the Western Cordillera. It is hosted by folded and thrusted Cretaceous carbonate sediments, principally the Jumasha Formation. Antamayo lies in the eastern part of the polymetallic belt of central Peru, which has porphyry Cu-Mo-(Au) deposits, skarn Cu-Zn-Ag-Pb deposits and carbonate-replacement Zn-PbAg deposits related to Miocene felsic intrusions with ages of 20 to 5 Ma. Dating of Antamayo gives ages of 46.4 to 45.3 Ma in the Middle Eocene. This is older than the nearby skarn deposits of Antamina, 38 km to the south, dated at 10.18 to 9.86 Ma, and Magistral, 130 km to the northwest and dated at 15.7 to 14.6 Ma, but is similar to major copper deposits in southern Peru and northern-central Chile.
12
The project geology comprises siliciclastic sediments of the Goyllarisquisga Group in the west, thrust over thick carbonates of the Jumasha Formation and Celendn Formation. Six types of intermediate to felsic, equigranular to porphyritic intrusive rocks have been mapped in the form of abundant dikes, sills and stocks which form two large clusters at the Chequiacocha-NW zones (2,500 m by 1,500 m) and the Yanacocha-Muki-Siete zones (2,200 m by 1,000 m), and a smaller cluster at the Huinchos-Nena zone (700 m by 500 m). The porphyry intrusions have potassic, phyllic, argillic, propylitic alteration and endoskarn. The carbonates are altered to exoskarn, hornfels and marble. The skarns form small bodies related to the small intrusions. The skarn alteration is to prograde mineral assemblages of diopside and garnet skarn. There are also overprinting retrograde skarn assemblages of chlorite, dark green smectite and calcite with pyrrhotite, sphalerite and chalcopyrite, and minor pyrite, magnetite and molybdenite in places. Hornfels and marble form extensive alteration zones coincident with the concentrations of minor porphyry intrusions. Mineralization occurs in altered intrusive rocks and in carbonates rocks with skarn, hornfels and marble alteration. Mineralization in intrusive rocks is pyrite, chalcopyrite, pyrrhotite, galena and sphalerite. Mineralization in skarns, hornfels and marble is chalcopyrite in disseminated to submassive form, as well as sphalerite, pyrite, pyrrhotite, magnetite, galena, marcasite and molybdenite. There is no significant depth of oxidation due to glacial erosion. The exploration target concept is that Antamayo represents a high level above a large zoned, Antamina-type porphyry-skarn system. The model is a simple concentric mineralized system, centered on a composite porphyry stock that first formed a large metamorphic aureole of marble and hornfels close to the intrusive center, and recrystallization outside the marble-hornfels zone. A second intrusive phase brought in the main metasomatic stage (hydrothermal event), with porphyry style mineralization in the porphyry stock, and endoskarn and exoskarn on its margins, with weaker and more erratic mineralization developed away from the main exoskarn limits. Copper, zinc and molybdenum mineralization came with the prograde and retrograde events, most of it probably with the retrograde event. At Antamayo, numerous minor intrusions are exposed over a large area of about 3 km by 3 km associated with widespread limestone recrystallization, hornfels and marbleisation, and minor skarn, but it has not been eroded to a sufficient depth to expose any larger skarn and porphyry bodies that may be present. The deep drilling by Oban intersected wide zones of pervasive marble, hornfels and skarn with anomalous grades of copper, zinc, silver and molybdenum. These are interpreted to be the middle zone, closer to the fluid source, and to validate the exploration model. The location of the interpreted concealed porphyry-skarn target is interpreted to be between the Huinchos and Chequiacocha zones. There may be one or two separate intrusive centers. 13
1.7 Deposit Types

The type of deposit target at Antamayo is a concealed oxidized calcic copper skarn with zinc, silver and molybdenum credits, related to a concealed porphyry copper deposit. The exploration model zonation is based on the nearby Antamina skarn deposit.
1.8 Exploration
Mitsui and Teck Cominco carried out geological mapping, trenching, soil sampling, rock sampling and stream sediment sampling with multielement analyses. The historical sampling totals 659 rock samples, 343 soil samples and 47 stream sediment samples. They also carried out an induced polarization (IP)-resistivity survey and a ground magnetic survey. Oban has carried out programs of geological mapping and rock sampling, with a total of 367 rock and channel samples with multielement analyses, a deep 3D IP / resistivity survey, and reprocessing of the earlier magnetic data. The geophysical surveys identified zones of deep anomalies which were targeted by drilling by Oban in 2013.
1.9 Drilling
Oban carried out a program of 4,042.9 m of diamond drilling in five drill holes between 7 October and 17 December 2013. The holes had a nominal target depth of 1,000 m each. The final lengths varied from 553.4 m to 1,088.0 m, with an average of 808.58 m. The holes intersected wide zones of marble, hornfels, pyroxene>garnet skarn, and retrograde skarn, with widespread, abundant disseminated pyrrhotite, and zones with disseminated to locally semi-massive chalcopyrite and sphalerite. The longest intervals of copper are 41.50 m at 0.52% Cu (ANT-13-005, 444.80 to 486.30 m), including 7.67 m at 0.83% Cu (449.90 to 457.57 m), and 24.45 m at 0.65% Cu (ANT-13-003, 349.60 to 374.055 m). The longest intervals of zinc are 106.60 m at 0.36% Zn (ANT-13-005, 444.80 to 551.40 m), including 6.80 m at 1.06% Zn (444.80 to 452.90 m), and 17.02 m at 0.21% Zn (ANT-13-003, 158.90 to 180.08 m). Hole ANT-13-003 has significant Mo anomalies including 24.45 m at 90 ppm Mo (348.42 to 374.05 m) and 57.33 m at 96 ppm Mo (853.25 to 910.58 m), including 27.58 m at 141 ppm Mo (881.00 to 908.58 m).
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The longest silver intervals are 41.50 m at 16 g/t Ag (ANT-13-005, 444.80 to 486.30 m), 23.22 m at 5 g/t Ag (ANT-13-005, 493.48 to 516.70 m), and 17.86 m at 8 g/t Ag (ANT-13-003, 349.60 to 367.46 m).
1.10 Sample Preparation, Analysis and Security

The historical assay data cannot be verified as a result of the incomplete documentation, missing assay certificates and missing QA-QC data, and in its present form it does not conform to CIM / NI 43-101 standards. It was used by Oban to guide their exploration, and all areas of surface mineralization have been re-sampled. The drill assays cannot be used to carry out resource estimates, unless the core is re-sampled on a continuous basis using Obans protocols for sampling, analysis and QA-QC. Oban have a written protocol manual for sample collection and QA-QC and that meets the best practices guidelines currently used within the industry. This includes insertion of certified standard reference materials (CSRM), blanks, field duplicates and replicate samples. The QAQC results show that the sampling, sample preparation and analytical procedures are reliable and give reproducible results.
1.11 Data Verification

The author has verified the data used upon in this report by visiting the property on two occasions, revising the historical and Oban drill core, carrying out independent check sampling, and revising the QA-QC and assay certificates. The author concludes that: Sampling, sample preparation, assaying and analyses have been carried out in accordance with best current industry standard practices and are suitable to plan further exploration; The exploration programs are well planned and executed and supply sufficient information to plan further exploration; Sampling, assaying and analyses includes quality assurance and quality control procedures.
1.12 Mineral Processing and Metallurgical Testing

No metallurgical testing has been carried out on the Antamayo Project.
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1.13 Mineral Resource Estimates

There are no mineral resource estimates for the Antamayo Project that are compliant with the current CIM standards and definitions required by the Canadian NI 43-101 Standards for Disclosure of Mining Projects.
1.14 Adjacent Properties

There are no adjacent properties with NI 43-101 resources.
1.15 Other Relevant Data and Information

There is no other relevant data and information to be reported.
1.16 Interpretation and Conclusions

The Antamayo Project is an early stage exploration project for copper with zinc, silver and molybdenum in skarn and porphyry type deposits concealed at an unknown depth. Surface exploration work and shallow historical drilling has identified a large mineralizing system with widespread alteration of favorable carbonate host rocks; widespread, small porphyry and equigranular intrusions of variable composition; numerous small areas of skarn, some with high grade copper that is exploited in artisanal mines; and widespread anomalous values of copper, zinc, silver and molybdenum in rocks, soil and core. This is interpreted to represent the outer or distal zone of a concealed porphyry-skarn system. The outcropping skarn deposits have exploration potential for the definition of small, high grade copper and zinc bodies in mantotype deposits. Deep drilling by Oban has intersected wide zones of pervasive marble, hornfels and skarn with anomalous copper, zinc, silver and molybdenum values. These are interpreted to represent a middle zone closer to the hypothetical intrusive center and skarn, and to validate the exploration model. The principal exploration target is the concealed porphyry intrusion or intrusions with copper and molybdenum, and proximal skarn with copper, zinc, silver and molybdenum mineralization. Their depth is unknown: they may be lateral to areas tested by the drilling, or at greater depth. The target is a 1 billion tonne or larger porphyry-skarn system, with grades of 1% Cu or higher, plus Zn, Ag and Mo credits, with the top of the mineralization expected to be at least 300 m below the lowest elevation of the Antamayo valley (4,200 meters above mean seal level (masl)), and that is amenable to underground bulk mining. The potential quantity and grade are 16
conceptual in nature as there has been insufficient exploration to define a mineral resource, and it is uncertain if future exploration will result in the target being delineated as a mineral resource. The potential target quantity and grade are based on a comparison with the nearby Antamina deposit with higher copper grades amenable to underground bulk mining. The size of the Antamayo system is permissive for the discovery of a body of this size, and the system has been shown to be mineralized with Cu with Zn, Mo and Ag. The project has a high geological risk and a high potential reward, with the main risks being the unknown depth of the main intrusive center(s) and its grades. Despite the geological risk, the system is large and has many of the correct components for the discovery of a large porphyry and/or skarn copper deposit. The author concludes that the Antamayo Project has potential for the discovery of a potentially economic copper deposit, with zinc, silver and molybdenum credits, and that further exploration by deep drilling is warranted. The author concludes that sample collection, security, preparation and analyses at the Antamayo Project by Oban have been carried out in accordance with best current industry standard practices and are suitable to plan further exploration. Sampling and analyses include quality assurance and quality control procedures. The exploration programs are well planned and executed and supply sufficient information to plan further exploration. There are no other known significant risks or uncertainties that could reasonably be expected to affect the reliability or confidence in the exploration information.
1.17 Recommendations
It is recommended that an additional 4,000 m of deep drilling in 4 holes is carried out to test for the possible intrusive-skarn center(s) between Huinchos and Chequiacocha. A two stage exploration programme is recommended comprising surface exploration and core logging for target definition in Stage 1, followed by drilling in Stage 2. Stage 2 is conditional on the favorable outcome of results in Stage 1. The Stage 1 program comprises the following surface exploration: 1. Additional 3D IP / resistivity survey between the Siete and Huinchos zones, and south of Huinchos. 2. Extend the ground magnetic survey for several km away from the current grid to give more magnetic contrast. 3. Geological mapping and surface sampling in the area between the Siete and Huinchos zones, and south of Huinchos to Flor de Cantu.
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4. Obtain a high resolution (1 m or better) satellite image for the main area of the project, and derived topographic contour map and digital elevation model (DEM) for geological mapping, interpretation and for use as a detailed topographic base map. 5. Detailed logging of all historic drill holes and continuous sampling of zones of alteration and sulfides as a check on historical results, which lack certificates and QA-QC, and to complete sampling, as only a few samples were taken from holes in Phase 2 and Phase 3. The estimated costs for the Stage 1 program are US$422,000 and the estimated time to carry out the program is 6 months. The estimated costs are given in Table 1.1.
Item Geological mapping and geochemical sampling Geochemical assays (200 samples at $45) Relog historic drill core Resample historical core (1,000 samples including QAQC at $45) IP and magnetic survey and interpretation Satellite image and derived contour map, DEM Reporting and GIS Supplies and maintenance Transportation Community relations Security Contingency 10% Total US$ 50,000 9,000 20,000 45,000 100,000 50,000 20,000 10,000 20,000 50,000 10,000 38,000 422,000
Table 1.1 Estimated budget to carry out Stage 1 exploration program at Antamayo Project.
In the Stage 2 program it is recommended that an additional 4,000 m of deep drilling in 4 holes is carried out to test for the possible deep, concealed intrusive-skarn center(s) between Huinchos and Chequiacocha. This should include the extension of hole ANT-13-005 to 1,000 m depth. The estimated costs for the program are US$1,545,000 and are listed in Table 1.2. The estimated time to carry out the program is 6 months, including 3 months of drilling.
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Item Diamond drilling (4,000 m at $250 per meter contractor cost) Assays (1,000 samples at $45 per sample) Geological support Supplies and maintenance Community relations Transportation (mob-demob rigs, transport personnel, samples, core boxes, fuel, food, supplies). Environmental monitoring Security Contingency 10% Total
US$ 1,000,000 45,000 100,000 100,000 50,000 50,000 50,000 10,000 140,000 1,545,000
Table 1.2 Estimated budget to carry out Stage 2 exploration program at Antamayo.
The total cost of the Stage 1 and Stage 2 exploration programs is US$1,967,000 and the estimated time to completion is 12 months. All of the permits required for exploration and drilling have been obtained for the two stages of this program.
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2 INTRODUCTION
2.1 Purpose of Report
Dr. Stewart D. Redwood, Consulting Geologist, prepared this independent Qualified Persons Technical Report of the Antamayo Project in the Department of Ancash, Peru for Braeval Mining Corporation (Braeval), a company registered in Ontario, Canada whose shares are listed for trading on the Toronto Stock Exchanges (TSX) Venture Exchange, and Oban Exploration Limited (Oban), a private company registered in Ontario. The report was prepared in connection with the proposed business transaction between Braeval and Oban, announced on 21 February 2014. This report is an update of an unpublished Technical Report prepared for Oban by the author in 2012 (Redwood, 2012). Obans operating company in Peru is its subsidiary Oban S.A.C. (Oban SAC), previously called Dardo de Plata S.A.C., a company registered in Peru, that is owned indirectly via Oban Exploration (Barbados) Limited, a company registered in Barbados. Technical services in Peru in the early stages of the project in 2011-12 were carried out through a service contract with Cumbres Exploraciones S.A.C. (Cumbrex), a private company registered in Peru, which is independent of Oban. Since 2013 exploration has been carried out directly by Oban SAC.
2.2 Terms of Reference

The terms of reference were to prepare a Technical Report as defined in Canadian Securities Administrators National Instrument 43-101, Standards of Disclosure for Mineral Projects, and in compliance with Form 43-101F1 (Technical Report) and Companion Policy 43-101CP.
2.3 Sources of Information

The author was provided with all of the data for the project generated by Oban, as well as the historical exploration data that was provided to Oban by Mitsui. The author considers that he has seen the most important reports and data and that there are no significant omissions of information. The reports that were consulted, as well as other published government reports and scientific papers, are listed in Section 19 of this report.
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2.4 Personal Inspection

The author made a personal inspection of the property on 14 to 17 December 2013, including three days in the field and one day reviewing recent drill core in Lima on 17 December 2013. The author made a prior personal inspection of the project on 9 to 12 April 2012. This included two days in the field at the project, and one half day examining historical drill core in Huaral. The author also spent another day examining more historical drill core in Huaral on 1 August 2012.
2.5 Abbreviations
A list of the abbreviations used in the report is provided in Table 2.1. All currency units are stated in US dollars, unless otherwise specified. Quantities are generally expressed in the metric International System (SI) of units, including metric tonnes (t), kilograms (kg) and grams (g) for weight; kilometres (km) and meters (m) for distance; hectares (ha) for area; and grams per metric tonne (g/t) for gold and silver grades. Metal grades may also be reported in parts per million (ppm) and gold grades in parts per billion (ppb).
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Description Atomic absorption spectrophotometer Braeval Mining Corporation Canadian Institute of Mining, Metallurgy and Petroleum Canadian National Instrument 43-101 Centimetre(s) Certified Standard Reference Materials Cumbres Exploraciones S.A.C Degree(s) Degrees Celsius Consolidated Annual Declaration (Declaracin Anual Consolidada) General Mining Directorate (Direccin General de Minera) Environmental Impact Statement (Declaracin de Impacto Ambiental) United States Dollar(s) Gram(s) Grams per metric tonne GeoMad SG E.I.R.L. Global positioning system Greater than. Less than Hectare(s) Inductively coupled plasma spectrometer Inductively coupled plasma atomic emission spectrometer Inductively coupled plasma mass spectrometer Induced polarization-resistivity survey National Institute of Concessions and Mining Cadaster (Instituto Nacional de Concesiones y Catastro Minero) Geological, Mining and Metallurgical Institute (Instituto Geologico Minero Metalurgico) Induced polarization International Organization for Standardization 2004 Australasian Code for Reporting on Exploration Results, Mineral Resources and Ore Reserves by the Joint Ore Reserves Committee, Australasian Institute of Mining and Metallurgy, December 2004 Kilogram(s) Kilometre(s) Square kilometre (s) Meter(s) Million tonnes Million years Abbreviation AAS Braeval CIM NI 43-101 cm CSRM Cumbrex
o o
DAC DGM DIA US$ g g/t GeoMad GPS >,< ha ICP ICP-AES ICP-MS IP INACC INGEMMET IP ISO JORC Code kg km km2 m Mt Ma
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Meters above mean sea level Millimetre(s) Millivolt per volt Minutes and seconds Net smelter royalty North, south, east, west Oban Exploration Limited Oban S.A.C. Ohm.meter Parts per billion Parts per million Percent(age) Percent by volume Plus or minus Quality Assurance/Quality Control Peru Nuevos Soles Limited company, Peru (Sociedad Anonima Cerrada) Standard deviation System for Electronic Document Analysis and Retrieval (Canadian Securities Administrators) Systme International d'Units (International System of Units) Teck Cominco Ltd. Tonne(s) (metric) Toronto Stock Exchange Administrative Economic Unit Tax Unit (Unidad Impositiva Tributaria) Universal Transverse Mercator Table 2.1 List of abbreviations masl mm mV/V , NSR N, S, E, W Oban Oban SAC Ohm.m ppb ppm % vol.% QA-QC S/. S.A.C. SD SEDAR SI
Teck Cominco t TSX UEA UIT UTM
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3 RELIANCE ON OTHER EXPERTS

The author has relied on Laub & Quijandra, Lima, legal counsel to Oban, for information about the concessions in Due Diligence reports dated 17 July 2012, titled LAUB Due Diligence Antamayo Project, and 10 January 2014, titled Supplementary report to Due Diligence on OBAN S.A.C. mining property. The author has not carried out independent verification of the titles of the mining concessions.
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4 PROPERTY DESCRIPTION AND LOCATION

4.1 Property Location
The Antamayo Project is located in the District of Cajay, Province of Huari; Districts of San Juan de Rontoy, Chingas and Mirgas, Province of Antonio Raymondi; and District of San Nicolas, Province of Carlos F. Fitzcarrald, all in the Department of Ancash, Republic of Peru (Figure 4.1). The latitude and longitude for the central part of the project (Siete Zone) is 9 12 00S, 77 5 25W (UTM 270310, 8982296) at 4,274 m altitude. The datum used in Peru is Provincial South America 1956 (PSAD 56). Altitudes in the project are between 4,200 and 4,700 m above mean sea level.
Figure 4.1 Location map of Antamayo Project, Department of Ancash, Peru Map prepared by S. Redwood, January 2014.
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4.2 Property Description

4.2.1 Mining Rights The Antamayo Project consists of 23 mining rights with a total area of 16,700 hectares (ha) that are owned or controlled by Oban through its Peruvian subsidiary, Oban SAC. A list of the mining rights is given in Table 4.1 and they are shown in a map in Figure 4.2. Mining rights are identified by their name and code number. Fourteen of the mining rights, with a total area of 9,200 ha, are mining concessions granted to Oban. Two of the other mining rights, with a total area of 1,700 ha, are applications made by Oban. One of the applications awaits the outcome of an auction process which results when more than one company applies for the same area. The time frame for granting of applications is usually a few months, while auctions can take more than one year; however, these two applications are not required to carry out the exploration programs recommended in this report, nor will they affect the future viability of the project, based on current knowledge, as the known mineralization and exploration targets are on mining concessions. Seven of the mining concessions, with an area of 5,800 ha, are optioned by Oban SAC from Mitsui Mining & Smelting Co. Ltda., Sucursal del Per (Mitsui). The main areas of exploration interest are the Naomi No. 6 and Naomi F mining concessions, optioned from Mitsui. These seven mining concessions are under the obligation to meet the minimum production requirement based on their antiquity, or pay an annual penalty or make a minimum annual investment, as described below in section 4.2.3. The seven Mitsui mining concessions are grouped as the Antamayo Administrative Economic Unit (UEA), under which the production obligation shall be met by any mining concession in the UEA. The production obligation has not been met as of the date.
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Code
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 010076699 010073700 010073800 010073900 010074000 010074100 010074200 010492611 010492711 010492811 010492911 010089312 010089412 010141112 010141212 010141312 010191712 010191612 010191512 010049713 010277713 010281613 010345113
Name
NAOMI F NAOMI N 5 NAOMI N 6 NAOMI N 7 NAOMI N 8 NAOMI N 9 NAOMI N 10 LARISSA 1 LARISSA 2 LARISSA 3 LARISSA 4 LARISSA 5 LARISSA 6 LARISSA 7 LARISSA 8 LARISSA 9 LARISSA 10 LARISSA 11 LARISSA 12 LARISSA 13 LARISSA 14 LARISSA 15 LARISSA 16
Area( ha)
1,000 200 1,000 1,000 800 800 1,000 1,000 300 1,000 300 1,000 1,000 1,000 600 400 1,000 700 100 100 700 700 1,000
Owner
MITSUI MITSUI MITSUI MITSUI MITSUI MITSUI MITSUI OBAN S.A.C. OBAN S.A.C. OBAN S.A.C. OBAN S.A.C. OBAN S.A.C. OBAN S.A.C. OBAN S.A.C. OBAN S.A.C. OBAN S.A.C. OBAN S.A.C. OBAN S.A.C. OBAN S.A.C. OBAN S.A.C. OBAN S.A.C. OBAN S.A.C. OBAN S.A.C.
Date Staked
02/08/1999 02/05/2000 02/05/2000 02/05/2000 02/05/2000 02/05/2000 02/05/2000 07/10/2011 07/10/2011 07/10/2011 07/10/2011 08/02/2012 08/02/2012 12/04/2012 12/04/2012 12/04/2012 02/05/2012 02/05/2012 02/05/2012 02/01/2013 01/08/2013 06/08/2013 04/11/2013
Date Title
12/05/2000 18/08/2000 01/08/2000 31/07/2000 01/08/2000 18/08/2000 31/07/2000 25/04/2012 24/04/2012 30/03/2012 29/03/2012 21/06/2012 31/05/2012 23/10/2012 12/11/2012 23/10/2012 29/08/2013 28/12/2012 28/12/2012 31/05/2013 Awaited 29/11/2013 Await auction
Table 4.1 List of mining concessions and applications at the Antamayo Project as of December 2013. Mitsui = Mitsui Mining & Smelting Co. Ltd., Sucursal del Per.
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Figure 4.2 Plan of the mining concessions and applications at the Antamayo Project. Map prepared by Oban, January 2014.
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4.2.2 Mitsui Option Seven mining concessions, with an area of 5,800 ha (Naomi F, Naomi 5, Naomi 6, Naomi 7, Naomi 8, Naomi 9 and Naomi 10), are held under an option and assignment contract between Mitsui and Oban dated 15 August 2011 (the Mitsui Option). It was signed as a public minute before a notary on 24 August 2011, and was recorded in the Mining Registry on 7 September 2011. The Mitsui Option was originally signed by Cumbrex as the operator for Oban in Peru. It was transferred from Cumbrex to Oban SAC by an amendment to the Mitsui Option dated 24 August 2012, which was notarized on 18 September 2012. A second amendment was made to the Mitsui Option on 10 June 2013 and notarized on 13 June 2013. This changed the times to make the second and third investment commitments to six months and 18 months respectively from the date of Oban obtaining the permit to carry out exploration, rather than within two and three years respectively of the signing date of the agreement. The date of the permit to start exploration activities was 14 August 2013. This amendment was made as a result of the new requirement to obtain a permit to start exploration which was introduced by Supreme Decree No. 020-2012-EM of 6 June 2012 (described below in section 4.2.6.4), after the Mitsui Option was signed. The principal terms of the Mitsui Option are as follows: Oban SAC can earn 100% of the mining concessions in 36 months from the date of signing of the public minute on 24 August 2011. The First Option is to acquire 70% by staged payments totalling US$1,000,000 as follows: o US$50,000 on signing the public minute (paid); o US$100,000 at 12 months from the date of signing (paid); o US$250,000 at 24 months from the date of signing (paid); o US$600,000 at 36 months from the date of signing (due on 24 August 2014). o The final payment will be made on signing a public minute to transfer 70% of the mining concessions to Oban SAC. The Second Option is to acquire an additional 30% for a total of 100%. Oban SAC has 90 days from the completion of the First Option to elect the Second Option. The terms of the Second Option are: o Payment of US$9,000,000 to make a total of US$10,000,000 for 100%, including the payments made in the First Option; o Upon exercising the Second Option, Mitsui will transfer the remaining 30% of the mining concessions to Oban SAC. 29
If Oban SAC exercises the First Option but decides not to exercise the Second Option, then the parties will form a new company owned by Oban SAC 70% and Mitsui 30%, and will transfer the mining concessions to the new company. The parties will have proportional representation in the management of this company. If either party fails to contribute its share of costs, its shareholding will be diluted pro-rata. Mitsui will have a preferred right to buy concentrates of copper and zinc produced from the mining concessions. The mining concessions will be assigned to Oban SAC for the duration of the option contract with the following conditions: o Payment of US$100,000 at the time of the signing of the public minute (done); o Investment of US$500,000 in the first year after signing (done); o Investment of US$1,000,000 within six months of Oban obtaining the permit to carry out exploration (done); o Investment of US$1,500,000 within eighteen months of Oban obtaining the permit to carry out exploration (due by 14 February 2015). The total investment commitment is US$3,000,000. Oban has spent US$$2,700,649 as of 31 December 2013 and thus has to spend an additional US$299,351 by 14 February 2015 to fulfill the investment commitment.
4.2.3 Legal Framework Mineral resources in Peru belong to the state. Mining is governed by the General Mining Law (Ley General de Minera) of 2 June 1992 (Supreme Decree No. 014-92- EM) with subsequent modifications and regulations. The competent mining authority is the General Mining Directorate (DGM Direccin General de Minera) of the Ministry of Energy & Mines (www.minem.gob.pe). The mining law is administered by INGEMMET (Instituto Geolgico Minero y Metalrgico or the Geological, Mining & Metallurgical Institute). There is one type of mining concession (concesin minera) which gives the owner the right to explore and exploit. The application has to define whether it is for metallic or non-metallic minerals. The descriptions that follow in this section refer to metallic minerals. There are different costs for non-metallic minerals and for small miners which are not relevant to this project. The basic unit of the mining concession is 100 hectare squares (1 km by 1 km) based on the 1 km grid squares of the Universal Transverse Mercator (UTM) map grid. The maximum size of a concession is 1,000 hectares (10 units) in adjoining blocks. The concession is defined by UTM coordinates for every corner or 1 km grid intersection, but no map is necessary, and no reference 30
or marker points need to be defined in the field or on paper. There is no defined number of years for the limit of mining concessions as they are irrevocable and can be held ad infinitum if maintained, but minimum annual production must be achieved by Year 15 or the concession will be cancelled, or after 20 years in the case of force majeure. The procedure for making an application for a mining claim (petitorio minero) is as follows: 1. Application is made to the Mining Concessions Office of the INGEMMET with the following documents: a. UTM coordinates to define the concession. b. Receipt for property tax (derecho de vigencia) for Year 1 (US$3.00 per hectare per year). c. Receipt for staking fee (derecho de petitorio) defined as 10% of the UIT (Unidad Impositiva Tributario or Tax Unit; 1 UIT = S/.3,800 in 2014) and is currently S/.380 (about US$135.71). 2. Within 7 days of application, the Mining Concession Office will advise the claimant to collect the notices for publication of the application. 3. Within 30 days of receiving publication notice, the application is published once in the official newspaper El Peruano and at the same time in the relevant provincial newspaper which publishes legal notices. The actual pages then have to be given to the Registry within 60 days of publication. 4. There is a 30 day period after publication for opposition to be made to the application by owners of existing properties. In the case of opposition, there is a 7 day waiting period followed by 30 days to investigate. The Chief of the Mining Concession Office then has 30 days to give the resolution after receiving the decree of the Legal and Technical Offices. 5. If there is no opposition, the Chief of the Mining Concession Office of issues the technical and legal decrees and passes them to the President of the INGEMMET within 5 days for issue of the title. 6. A list of new mining concession titles is published every month in the official gazette El Peruano. The requirements for maintenance of mining concessions are as follows: An annual concession tax (derecho de vigencia) of US$3.00 per hectare per year, payable by 30 June. The payment for the first year is made at the time of the application for the concession. For the second and subsequent years, payment is made by calendar year. Present a Consolidated Annual Declaration (DAC - Declaracin Anual Consolidada) every year to the DGM. For mining concessions granted before 2008, production must start in Year 7 or a penalty is payable, or there must be an annual investment in the previous year of at least ten times 31
the penalty. The minimum production is defined as one UIT per hectare per year, which is S/.3,800 in 2014 (about US$1,357). The penalty is US$6.00 per hectare from Years 7 to 11, and US$20.00 per hectare from Year 12. The corresponding investments are thus US$60.00 per hectare from Years 6 to 10, and US$200.00 per hectare from Year 11. A new regulation (Legislative Decrees No. 1010 of 9 May 2008, No. 1054 of 26 June 2008 and Supreme Decree No. 054-2008-EM of 10 October 2008) was introduced in 2008. For applications made from 2009, there are 10 years for exploration, calculated from the year after the title was granted. Minimum production must start by Year 11 or a penalty is payable. The minimum production is defined as one UIT per hectare per year, which is S/.3,800 in 2014 (about US$1,357). The annual penalty for Years 11 to 15 is 10% of a UIT per hectare. If minimum annual production is not achieved by Year 15 the concession will be cancelled by caducity, except for cases of force majeure for up to 5 years (Years 15 to 20), in which case the mining concession will become extinct by caducity after Year 20. Supreme Decree N 054-2008-EM established in its Temporary Provisions some exceptions to the new regime. The mining concessions in effect on the date of publication of the Supreme Decree shall start computing the time limits to achieve minimum annual production as defined by the new rules from the first business day of 2009. In other words, minimum annual production for mining concessions granted before 2008 must start by the end of 2018, or pay an annual penalty up to 2023, after which they will become extinct. The penalties for mining concessions that were granted prior 2008 will continue to be those that were in force before 2008.
The annual concession tax is distributed in the following proportions: 75% to the municipality or municipalities where the concession is located, 10% to INGEMMET, 5% to the Ministry of Energy & Mines, and 10% to the National Institute of Concessions and Mining Cadaster (INACC - Instituto Nacional de Concesiones y Catastro Minero). The following are grounds for extinction of mining concessions: Rejected when an application is not complete. Inadmissible when the coordinates are not correct or the area is outside the minimum and maximum sizes allowed. Nullity by staking by non-eligible persons. Cancellation when an application is completely superimposed on an existing concession or a restricted area. Abandonment by non-completion of the mining concession title. Caducity by non-payment of the annual concession tax and penalties, if applicable, for 2 consecutive years, or if minimum annual production is not achieved after 15 years, or in cases of force majeure, after 20 years. 32
Renouncement. All or part of a concession can be renounced, leaving a minimum of 100 hectares. Extinction needs to be registered. Extinct concession areas cannot be restaked until they are published in El Peruano as open ground.
The mining cadastral system can be consulted on the internet at INGEMMETs website (www.ingemmet.gob.pe). 4.2.4 Royalties & Taxes Mining royalties (regala minera) are defined by Law No. 28258 of 2004 (3 June 2004), which was modified by Law No. 28323 (10 August 2004), Law No. 29788 (28 September 2011) and their respective regulations. The mining royalty is calculated on the value of concentrates or their equivalent on the following scale: Up to US$60 million annually: 1.0%. Between US$60 million and US$120 million annually: 2.0%. Above US$120 million annually: 3.0%. The mining royalty is distributed in the following manner: 20% to the municipal authority where the mine is located; 20% to the provincial government where the mine is located; 40% to the departmental government where the mine is located; 15% to the regional government where the mine is located; 5% to the national universities in the region where the mine is located. A special windfall profits mining tax (Impuesto Especial a la Minera) was introduced in 2011 (Law 29789, 23 September 2011). It has 17 operational margin brackets with payments ranging from 2.00% to 8.40%. Miners with a 0 to 10% operational margin will pay the least while those with an operational margin of 85% and more will be at the top end of the scale. A special mining levy was also introduced for companies that have stability contracts with the State. The levy will be applied to operating margins on a scale of 4.0 to 13.1%. Corporate income tax is 30% on net profits. Fifty percent of this is distributed by the National Government to the regional and local governments in the area of direct and indirect influence of the mine. This distribution of taxes is called the Mining Canon (Canon Minero) and is defined by Law No. 27506 (9 June 2000) and subsequent modifications. The Mining Canon is distributed as follows: 10% to municipality where the mine is located; 33
25% to the district and provincial municipalities where the mine is located; 40% to the departmental governments where the mine is located; 25% to the regional government where the mine is located.
4.2.5 Environmental Regulations The environmental authority is Ministry of the Environment (Ministerio del Medio Ambiente), although the administrative authority is the Directorate of Environmental Affairs (DGAAM) of the Ministry of Energy and Mines. The environmental regulations for mineral exploration activities are defined by Supreme Decree No. 020-2008-EM of 2008. An Environmental Impact Declaration (DIA - Declaracin de Impacto Ambiental) has to be presented for drill programs with up to 20 platforms or disturbance of surface areas of up to 10 ha. The environmental authority has five working days to make observations, and if none are made the study is automatically approved by positive administrative silence. This is the category of the 2013 drill program at Antamayo and of the work program recommended in this report. A semi-detailed Environmental Impact Study (EIA Estudio de Impacto Ambiental SemiDetallada) has to be presented for drill programs with 21 or more platforms or a surface disturbance of more than 10 ha. The environmental authority has 45 working days to make observations, and if there are none the study is automatically approved by positive administrative silence. The total process including preparation of the study by a registered environmental consulting company takes about 6 months. A full Environmental Impact Study has to be presented for mine construction projects.
4.2.6 Permits Required for Exploration Oban has all of the permits required to carry out exploration at Antamayo and they are valid for the planned time frame for the work programs recommended in this report. The permits are described in the following sections. 4.2.6.1 Environmental Impact Declaration Oban submitted an Environmental Impact Declaration (DIA) for Antamayo on 15 February 2013. This was approved on 19 February 2013 by Automatic Approval No. 013 2013-MEMAAM from the Directorate of Environmental Affairs of the Ministry of Energy and Mines. The DIA allows Oban to carry out 24 drill holes from 20 platforms with a total area of disturbance of 3.7 ha on the Naomi F and Naomi No. 6 mining concessions. The time frame is 14 months from 34
the date of the approval to start exploration, and a three month extension can be obtained. A modification to the DIA for the 2013 drill program was approved on 23 September 2013 to relocate some platforms and the water source. Oban thus has until 23 February 2015 to carry out the program approved in the DIA. According to the inventory of the General Directorate of Mining, there are no mining environmental liabilities located in the project area. However, Oban has identified 18 mining environmental liabilities from artisanal mines within the project which are described in the DIA. There are no natural parks, forest reserves or other type of natural protected areas or indigenous reserves within the project area. The project is 15 km east of the Huascarn National Park. There are no known or recorded archeological sites within the project.
4.2.6.2 Legal Access and Surface Rights The granting of a mining concession in Peru specifically does not include a legal right of access, for which permission has to be sought from the land owners or community. Oban does not own any surface rights in the project area. The surface land rights in the principal area of interest are owned by the Flor de Cant community. Oban has signed an agreement with the Flor de Cant community to give it the right of legal access to the concessions. A community consultation (consulta previa) is required if the community is an indigenous community, as determined by the Ministry of Culture, or if the proposed activities may impact the collective rights of the community. Flor de Cant is defined as a peasant community (Comunidad Campesina) rather than an indigenous community, and therefore a consulta previa was not required. The Environmental Impact Declaration study included a program of Citizen Participation (Participacin Ciudadana) which included a workshop in order to inform the community of the scope of the project and solicit the communitys opinion. In addition, Oban carried out a study to show that the collective rights of the community would not be affected by the exploration activities. 4.2.6.3 Water Use Permit Water rights are governed by Law 29338, Law on Water Resources, and administered by the National Water Authority (ANA). Authorization for water use may be granted for a specified quantity, purpose and a period of time of up to two years, which may be extended once for the same time period if the project remains the same.
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Oban obtained authorization to use surface water for the Antamayo project on 7 August 2013 for a period of 16 months from the ANAs Maran Water Administrative Authority by Directorial Resolution No. 417-2013-ANA-AAA-M. The permit allows water to be taken from the outlet of Lake Chequiacocha and from Quisuaraga stream. 4.2.6.4 Approval to Start Exploration In order to start mineral exploration activities, a company is required to comply with the following requirements and obtain a resolution of approval from the General Directorate of Mining of the Ministry of Energy and Mines, as defined by Supreme Decree No. 020-2012-EM of 6 June 2012: Resolution of approval of the Environmental Impact Declaration. Work program. A statement from the concession holder indicating that it is owner of the surface land, or if not, that it has authorization from the owners of the surface land to carry out exploration activities. In the case of Antamayo, Oban has a signed an agreement with the Flor de Cant community for the right of legal access to the concessions. Mining concessions titles. Oban obtained approval to start exploration on 14 August 2013 by Directorial Resolution No. 208-2013-MEM/DGM from the General Directorate of Mining of the Ministry of Energy and Mines. In accordance with Article 17 of the Environmental Regulation, Oban communicated to the DGAAM and to the Evaluation of Agency and Environmental Auditor (OEFA) its starting date of exploration activities, 23 September 2013. 4.2.7 Other Risk Factors There have been significant problems with community opposition to some exploration and mining projects in other parts of Peru, and thus community risk has to be considered as a potential risk for any exploration and mining project in Peru. However, Oban has developed and maintains a good relationship with the communities in which the Antamayo project is located, and no specific community risk has been identified for the project. There are no other known significant factors and risks that may affect access, title or the right or ability to perform work on the property.
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5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

5.1 Accessibility
The Antamayo Project is located 315 km north of Lima, the capital of Peru, 60 km northeast of Huaraz, the capital of the Department of Ancash, and 18 km northeast of Huari, the capital of the Province of Huari. Access to the project is by road from Lima and takes about 10 to 12 hours, depending on traffic in and north of Lima. The route is listed in Table 5.1 and shown in a plan in Figure 5.1.
From Lima Pativilca Catac Huari Sharco Total To Pativilca Catac Huari Sharco Antamayo Road Route 1N, Panamerican North. 2 to 4 lane paved highway. Routes 16 and 3N. 2 lane paved highway. Route 110. 2 lane paved road, in poor condition after Kahuish Tunnel pass (4,516 m) at km35. Dirt road, graded. Dirt road, unimproved
Table 5.1 Road access to the Antamayo Project
Distance (km) 189 178 103 22 22 514
Time (h:m) 3h 00 m 3h 00 m 3h 00m 1h 00m 1h 00m 11h 00m
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Figure 5.1 Plan of road access to the Antamayo Project Map prepared by Oban, January 2014.
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5.2 Climate
The climate is characterized by distinct wet and dry seasons, with average annual precipitation of about 900 mm and a mean annual temperature of 5.6C. There is no meteorological data from the project and these data are based the nearest stations at Conococha and Cahuish (source: Servicio Nacional de Meteorologia e Hidrologia / National Meteorological & Hydrological Survey, SENAMHI). There is a rainy season in the summer months between October and April, with overcast days and temperatures between about 3C and14C, followed by a dry season in the winter months from May to September with clear skies giving sunny days and freezing nights, and more extreme temperatures between -10C and 17C. The mean monthly precipitation varies from 138.4 mm in February to 2.7 mm in June and July. The Holdridge life zone is alpine rain tundra. The vegetation zone is wet pramo or high-altitude tall grassland transitional to Puna high-altitude grassland. On the Ecological Map of Peru the life zone is classified as Subalpine, tropical wet grassland (paramo) (pmh-SaT) which occurs between 3,900 and 4,500 m altitude. The vegetation is characterized by bunch grass and low shrubs. Field work and drilling can be carried out all year round. However, mapping and sampling is best carried out in the dry season between May and September. During the rainy season the roads can become very muddy with difficulty of access for vehicles and drill rigs.
5.3 Local Resources and Infrastructure

The nearest communities are Flor de Cant, 4 km to the south, and Sharco, 7 km to the west. There are unsurfaced roads from each of these communities to the project, and drill roads within the project. Supplies for the project are bought in the nearest town which is Huari, 18 km to the southwest, a 2 hour drive, or in Huaraz, a 6 hour drive. There is no permanent field camp on the project. Oban set up a tent camp for field work and drilling. The land use is high altitude grazing of sheep and cameloids, with agriculture at lower altitudes in the valleys. There are several artisanal copper mines, the number of which have increased in the last two years. Oban does not own any surface rights in the project area. Since the project is at an exploration stage, it is not yet relevant to consider the sufficiency of surface rights for mining operations.
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The nearest international airport is in El Callao, Lima. There is a surfaced airstrip at Anta, near Huaraz but it does not have scheduled flights. The nearest major sea port is El Callao, Lima.
5.4 Physiography
The project is located in the eastern side of the Western Cordillera of the Peruvian Andes. It is separated from the Pacific Ocean, 145 km to the west, by two mountain belts, the Cordillera Blanca in the east and the Cordillera Negra in the west. The project lies at an altitude of between 4,200 m and 4,700 m above mean sea level. The physiography is mountainous with sharp ridges, steep slopes and deep valleys. The general trend of the topography is north-northwest. The central part of the project around Yanacocha forms a regional topographic high with radial drainages around it. Hydrographically the project is in headwaters of the Maraon River basin, part of the Amazon basin with eventual outlet to the Atlantic Ocean. There is one small glacial lake in the main area of interest, Lake Chequiacocha (also spelt Chiquiacocha) at 4,320 m altitude which is drained by Quebrada Araranga (Spanish quebrada = stream). There are also three marshes in the beds of former glacial lakes at about 4,320 m to 4,200 m altitude at Yanacocha in the headwaters of Quebrada Quisuaragra. These two streams flow south and join to form Quebrada Chacaragra, which then flows southeast and disappears into the small, dry Lake Shushucocha in a hanging valley with no outlet, 8 km south of Yanacocha. The valley continues below a 300 m dry scarp for 5.5 km as Quebrada Shuncu, and joins the River Puccha which flows northeast into the Maraon River.
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Figure 5.2 General view of the Antamayo Project looking south from the NW Zone to Lake Chequiacocha at about 4,320 m altitude. (Photo S. Redwood).
Figure 5.3 View of Yanacocha Zone looking north from the Yolvi Zone. The peak is about 4,550 m. (Photo S. Redwood).
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6 HISTORY
The project name means Copper (anta) River (mayu) in Quechua. The name does not appear on topographic maps and is believed to have been assigned by a Mitsui geologist. Evidence for historical small scale mining is shown by a number of small adits, one of which, in the Yanacocha zone, is said to have an inscription with the date 1902 (Rosas, 2003). Local people say that small scale mining was carried out in the 1960s, and three unnamed adits are shown the 1:25,000 scale topographic map (Rosas, 2003). There are no historical records of mining. There is no record of any exploration prior to 1999 when Mitsui staked the project. Mitsui carried out exploration in 2000 consisting of geological mapping at 1:5,000 scale in the Muki, Chupo and Huinchos zones, and excavated trenches from which 605 rock samples were taken. There is no report of this work in the Oban database. Petrographic and ore mineralogy studies were made of 13 outcrop samples (Ocharan & Lehne, 2000). Mitsui optioned the project to Teck Cominco Ltd. (Teck Cominco, now Teck Resources Limited) from 2001 to 2003, which carried out the following work summarized in reports by Richard & Rosas (2003), Rosas (2003) and Geoandina (2008): Constructed a 21.9 km access road and 6.7 km of roads in the project. Geological mapping of the whole property (then 10,800 ha area) at 1:25,000 scale and in some areas at 1:5,000 and 1:2,000 scale. Collected 343 soil samples, 54 rock samples and 47 stream sediment samples. Petrographic study of 11 rock samples from outcrop by PetraScience Consultants Inc., Vancouver (Dunne & Thompson, 2002). Induced polarization (IP) survey of 28.2 line km, and a ground magnetic survey of 53.86 line km on lines with a 200 m spacing over an area of 4.6 km by 3.0 km, carried out by VDG del Per S.A.C. in 2002 (Pineault, 2002). First diamond drill program in 2002 of 5 holes for 1,157.60 m, with an average length of 231.5 m, and inclinations of -75 to -50 (holes AN02D001 to AN02D005). The best intersection was 7.75 m from 73.25 m grading 5.36% Cu, 1.0% Zn and 73.7 g/t Ag (AN02D001). Second diamond drill program in 2003 of 6 holes for 981.20 m, with an average length of 163.5 m, with inclinations of -75 to -70 (holes AN03D006 to AN03D011). Only 12 samples were analyzed. Masters thesis by W. Tejada (2003) at Queens University, Kingston, Ontario on the regional geology, petrography and radiometric age dating. In 2004 Mitsui carried out a third diamond drill program of 12 holes for 2,285.05 m, with an average length of 190.4 m, in the Muki and Chupo zones (holes ADDH 01 to ADDH 12), summarized in a report by Tejada & Cceres (2004). The hole inclinations were between -70 42
and -20. Mitsui took 178 core samples in zones with visual mineralization for analysis, but did not analyze the entire holes. The best intersection was 12.1 m from 54.35 m grading 1.82% Cu and 2.31% Zn (ADDH 02). The total amount of historical drilling is 4,423.85 m in 23 diamond holes with an average length of 192 m. The hole location and collar data is summarized in Table 6.1, the significant intersections are summarized in Table 6.2, and the hole locations are shown on a map in Figure 6.1. The historical drill core is stored in Obans core warehouse in Lima. It was originally stored at Obans core shack in the secure yard of a small hotel in Huaral, a town north of Lima. This core store was inspected by the author on 12 April 2012 and 1 August 2012 and core from several holes was examined. The core is stored in wooden boxes in core cubes on wooden pallets. The boxes are in good condition and are properly labelled, and in some cases Oban has transferred core to new boxes. The core is now stored in Obans core logging and storage facility in north Lima. Oban geologists made summary logs of the core in order to conform to Obans lithological mapping units and to make cross sections. No check sampling has been carried out of the core. It is recommended that the core be re-sampled on a continuous basis, except in non-mineralized limestone, as a check on the original analyses, and to obtain continuous analyses of the core, using Obans protocols for sampling, analyses and QA-QC.
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HOLE ID AN02D001 AN02D002 AN02D003 AN02D004 AN02D005 AN03D006 AN03D007 AN03D008 AN03D009 AN03D010 AN03D011 ADDH 01 ADDH 02 ADDH 03 ADDH 04 ADDH 05 ADDH 06 ADDH 07 ADDH 08 ADDH 09 ADDH 10 ADDH 11 ADDH 12
COMPANY Teck Cominco Teck Cominco Teck Cominco Teck Cominco Teck Cominco Teck Cominco Teck Cominco Teck Cominco Teck Cominco Teck Cominco Teck Cominco Mitsui Mitsui Mitsui Mitsui Mitsui Mitsui Mitsui Mitsui Mitsui Mitsui Mitsui Mitsui
YEAR 2002 2002 2002 2002 2002 2003 2003 2003 2003 2003 2003 2004 2004 2004 2004 2004 2004 2004 2004 2004 2004 2004 2004
ZONE Muki Muki Nena Nena Siete Siete Siete Muki Este Sur Muki Muki Muki Chupo Chupo Muki Muki Muki Muki Muki Chupo Chupo Chupo
UTM EAST 270500 270800 271160 271350 270325 270250 270400 270626 271175 270100 270704 270432 270500 269925 269947 270582 270352 270377 271082 270919 270018 270018 270018
UTM NORTH 8983055 8983160 8980025 8980500 8982185 8982000 8982400 8982600 8982400 8981600 8983025 8983231 8983055 8981524 8981456 8982888 8983453 8983058 8983055 8982592 8981955 8981955 8981955
ALTITUDE (m) 4285 4283 4160 4295 4243 4220 4270 4270 4450 4200 4280 4300 4285 4275 4275 4275 4350 4300 4375 4375 4275 4275 4275
AZIMUTH (degrees) 90 270 360 90 90 90 90 90 270 90 270 90 90 315 310 90 90 90 270 45 315 220 220
INCLINATION (degrees) -70 -70 -75 -50 -65 -70 -70 -70 -70 -75 -70 -60 -40 -20 -20 -50 -70 -70 -70 -60 -20 -20 -40
LENGTH (m) 228.20 197.25 220.60 272.55 239.00 157.25 180.50 163.70 163.90 139.70 176.15 230.00 200.00 294.30 200.00 184.40 200.15 284.70 200.50 84.30 63.00 158.10 185.60
Table 6.1 List of historical drill holes at Antamayo project, 2002-2004.
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Hole
From (m) 14.00 55.35 66.60
To (m) 16.30 59.30 69.80 81.00 97.40 106.70 16.30
Interval (m) 2.30 0.95 3.20 7.75 1.60 3.20 2.30
Cu % 0.41 0.76 0.85 5.36 0.52 1.55 0.41
Zn % 0.91 7.40 0.69 1.00 7.00 1.57 0.91
Ag ppm 2.17 12.10 11.20 73.65 9.40 61.12 2.17
AN02D001
73.25 95.80 103.50 14.00
AN02D002 AN02D003 AN02D004 AN02D005 AN03D006 AN03D007 AN03D008 AN03D009 AN03D010 AN03D011 ADDH01 ADDH02 ADDH03 ADDH04 ADDH05 ADDH06 ADDH07 ADDH08 ADDH09 ADDH10 ADDH11 ADDH12
No significant results No significant results 103.00 97.40 178.00 incl. 181 138.40 142.25 Not sampled Not sampled Not sampled Not sampled 156.80 54.35 155.00 157.80 66.45 161.10 1.00 12.10 6.10 0.14 1.82 1.11 2.50 2.31 2.50 116.60 121.70 212.00 200.10 139.50 143.85 13.60 24.30 34.00 19.10 1.10 1.60 0.44 0.92 0.39 0.50 3.01 1.34 0.70 0.04 0.17 3.55 7.62 0.43 4.86 46.20
No significant results No significant results No significant results No significant results 205.40 150.70 31.50 8.25 59.20 219.00 153.90 38.70 11.60 63.60 13.60 3.20 7.20 1.10 4.40 0.20 0.10 0.39 0.59 0.69 2.52 0.19 3.93 0.48
No significant results
Table 6.2 Summary of significant intervals of historical drill holes at Antamayo. Holes AN03D006 to ADDH12 were not sampled continuously, and four holes were not sampled at all. Sources: Richard & Rosas, 2003; Rosas, 2003; Geoandina, 2008.
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Figure 6.1 Location map of historical drill holes (yellow) and Oban drill holes (blue) at Antamayo. Map prepared by Oban SAC, December 2013.
Mitsui made a mineral resource estimate on a manto in 2004 of 286,500 to 573,000 tonnes grading 3.59% Cu, 1.66% Zn and 52.08 g/t Ag, classified as a potential resource. This is not a category recognized by CIM and it is presumed to be equivalent to an inferred resource. This is a historical resource estimate since it was made by another company prior to the involvement of Oban in the project, and is included here for information purposes only. The resource was made by a respected mining company for internal use but was not made to CIM / NI 43-101 standards. A qualified person has not done sufficient work to classify the historical estimate as a current mineral resource, and Oban is not treating this historical estimate as a current mineral resource. This resource has not been verified as a current mineral resource by Oban or by the author. Geoandina Exploraciones prepared a summary report of the previous work for Mitsui in 2008 (Geoandina, 2008). Oban optioned the project from Mitsui in 2011. Mitsui supplied Oban with digital copies of the previous exploration data which Cumbrex has compiled into a GIS database, and has carried out data verification of the database and of sample locations in the field. Errors encountered included missing sample data, duplication of sample codes, geographical datum not specified and 46
inconsistent nomenclature of geological units, as described in a report by Warscheid (2012). Cumbrex corrected these errors where possible, but there is data missing for some samples. The author was supplied with CD-ROM of the database and original data. Some reports are missing, but they is not considered to be material as they are summarized in later reports.
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7 GEOLOGICAL SETTING AND MINERALIZATION

7.1 Regional Geology
The regional geology has been described in papers by Cobbing (1985), Benavides-Cceres (1999) and Jaillard & Soler (1996). The regional geological setting is shown in Figure 7.1 and Figure 7.2. Antamayo is located in the Maraon fold-thrust belt in the eastern part of the Western Cordillera. This is formed of Mesozoic sediments deposited in the Chavin Basin, an ensialic, extensional, marginal basin related to eastward subduction and bounded by Precambrian craton to the east, the Maraon Complex. To the west, separated by a horst, is the western sub-basin, the Huarmey Basin, with up to 9,000 m of submarine volcanic rocks of basaltic and andesitic composition, the Casma Group, of Triassic to Albian age. The Huarmey Basin was closed in the mid-Cretaceous Mochica tectonic phase and was intruded along its axis by the Late Cretaceous Coastal Batholith granitoids, which crop out in the western parts of the Western Cordillera. The stratigraphy of the Chavin Basin has been described by in publications by BenavidesCceres (1956), Wilson (1963) and Wilson et al. (1967). These sediments host many of the important ore deposits of Central Peru. The oldest sedimentary rocks in the Chavin Basin are dark slate and quartzite of the Late Jurassic Chicama Formation (or Group), which crop out in the western parts of the basin. These are followed upwards by thick deltaic sandstone, shale, and coal, with a thin marine limestone, of the Lower Cretaceous Goyllarisquisga Group, and then by a thick sequence of marine carbonates of the Lower to Upper Cretaceous Pariahuanca, Chulec, Pariatambo, Jumasha, and Celendn Formations. The Chavin Basin was not affected by the closure of the Huarmey Basin in the mid Cretaceous, but uplift resulted in deposition of molassic red-bed sedimentary rocks to the east, the Casapalca Formation, during the Upper Cretaceous and Paleocene. Mineralization at Antamayo is hosted by the Jumasha Formation. The Chavin Basin was deformed by the Incaic II folding phase in the middle Eocene (43-42 million years ago (Ma)). There was extensive folding and reverse faulting throughout the basin, and formation of a foreland fold-thrust belt with eastern vergence in the eastern part, called the Maraon fold-thrust belt or the Imbricated zone (Mgard, 1984; Wilson et al., 1967). There were four short compressive pulses (Quechua I, II, III, and IV) during the Miocene at about 17 Ma, 10 to 9 Ma, 7 to 5 Ma and 2 Ma, separated by tectonically neutral or extensional periods (McKee & Noble, 1982; Sbrier & Soler, 1991). In the Middle to Upper Miocene, the Cordillera Blanca batholith was intruded in the eastern part of the Chavin Basin to form the Cordillera Blanca (dated at 13.7-6.3 Ma; Cobbing, 1998). Concurrently there was widespread magmatism (medium- to high-K calc-alkaline) across the Western and Eastern Cordilleras to form small stocks (Sbrier & Soler, 1991), many of which are related to mineralization. 48
Antamayo lies in the eastern part of the polymetallic belt of central Peru, which is located in the Western Cordillera between latitudes 6S and 14S. Mineralization in the belt comprises porphyry Cu-Mo-(Au) deposits, skarn Cu-Pb-Zn-Ag deposits and carbonate-replacement and vein Zn-Pb-Ag deposits. Mineralization is mostly related to Miocene felsic intrusions with ages of 20 to 5 Ma (Petersen, 1999). The nearest skarn deposits to Antamayo are Antamina, located 38 km south, and Magistral, located 130 km to the northwest. Dating of magmatic biotite and hydrothermal sericite at Antamayo by the argon-argon method gave ages of 46.4 to 45.3 Ma in the Middle Eocene (Tejada, 2003). These dates are significantly older than Antamina, dated at 10.18 to 9.86 Ma (McKee et al., 1979; Love et al., 2003), and Magistral, dated at 15.7 to 14.6 Ma (Dick, 2002) in the Middle to Upper Miocene. Other Eoceneage intrusions occur in the belt. The Middle Eocene to Early Oligocene belt of the Central Andes contains many important skarn and porphyry copper deposits in southern Peru (42-30 Ma) and northern to central Chile (44-31 Ma) (Sillitoe & Perello, 2005).
Figure 7.1 The regional geological setting of the Antamayo project. Map drawn by Oban, January 2014, based on INGEOMINAS 1:1 million Geological Map of Peru.
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Figure 7.2 The regional geological setting of the Antamayo project. Map prepared by Oban, January 2014 based on INGEMMET 1:100,000 scale geological maps. Note there are some mismatches at sheet boundaries.
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7.2 Project Geology

7.2.1 Stratigraphy Angeles (2011) carried out stratigraphic and structural mapping at 1:25,000 scale of the central part of the Antamayo project for Cumbrex. His stratigraphic column is shown in Figure 7.3. This formed the basis for mapping of the geology, alteration and mineralization by Cumbrex in 201112. Their geological map is shown in Figure 7.5.
Figure 7.3 Stratigraphic column of the Cretaceous for the Departments of Lima and Ancash used by Angeles (2011) for the Antamayo Project. Based on Romani (1982) with minor modifications by Angeles (2011). It is based on measured sections in the upper part of the River Huaura. 1 = sandstones, 2 = shales, 3 = marls, 4 = limestones.
7.2.1.1 Goyllarisquisga Group The Goyllarisquisga Group is of Berriasian to Lower Aptian age and comprises the Oyn, Chim, Santa and Carhuaz Formations.
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The oldest stratigraphic unit of the project is the Chim Formation which comprises at least 450 m of quartzites with some intercalations of fine grained, dark gray sandstones and shales. It is overlain by the Santa Formation which comprises 80 m of limestone with thin to medium bedding, and dark gray chert in beds and concretions. The limestones are mostly dark gray with a fetid odor on breaking. They are predominantly bioclastic packstones and grainstones which can be coarse grained to very coarse grained in some beds. There are some dolomitic beds with a beige color. In the upper part of the formation there are some intercalated beds of quartzite. The Carhuaz Formation is above the last limestone and consists of dark gray, red and green shales and sandstones. The Pariahuanca, Chulec and Pariatambo Formations of Aptian to Albian age do not outcrop in the central part of the project due being cut out by thrusting, and are not described by Angeles (2011). They were intersected by deep drilling by Oban in 2013, and outcrop west of the area mapped. These formations are sometimes grouped together as the Machay Group (in which some authors also include the Jumasha and Celendn Formations), an obsolete stratigraphic term. 7.2.1.2 Jumasha Formation The Jumasha Formation is Middle Albian to Turonian in age. It is formed of limestones, dolomites and marls with medium to thick bedding, and forms resistant beds. There is little geological variation, making subdivision difficult. Angeles (2011) mapped five members at Antamayo (Jumasha 1, Jumasha 2, Marker Unit, Jumasha 3 and Jumasha 4) following the stratigraphy defined at Oyn, 160 km to the south, by Romani (1982), Jaillard (1986) and Bussell et al. (1990). There is little difference between these members except for the Marker Unit and Jumasha 4. The sequence is illustrated in a photo in Figure 7.4. The Jumasha 2 Member is the lowest unit exposed in the project and comprises about 400 m thickness of pure limestones with medium to very thick bedding. The Marker Member (also called the Marker Unit or Marker Succession) is described as a marl up to 180 m thick with recessive weathering. It often has concretions and one or two limestone beds several 10s m thick. Revision by Angeles shows that the unit is thinner than mapped at 100 m, with the lower 80 m reassigned to the top of the Jumasha 2 Member, including a marly layer (C. Angeles, personal communication, 2 August 2012). The Jumasha 3 Member is 200 to 220 m thick and is a dark gray limestone with thinner bedding than the other limestones. It forms prominent outcrops and peaks. The Jumasha 4 Member is 400 m thick and is formed of recessive weathering, gray-brown to beige colored marls similar to the Marker Member. It has intercalated bioclastic limestone beds. 52
Figure 7.4 The stratigraphy of the Jumasha Formation. View looking NE to Cerro Yacocochana (4,593 m), between the Yanacocha Zone and the NW Zone. On west flank of Muki Anticline. Photo S. Redwood.
7.2.1.3 Celendn Formation The Celendn Formation is Coniacian to Santonian in age and is defined as a very soft, yellow, friable, richly fossiliferous shales interbedded with a few limestones (Benavides-Cceres, 1956). There are some small outcrops in the northwest part of the mapped area which are too small to show on the map. It is formed of laminated marls and some thinly bedded, marly limestones.
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Figure 7.5 Geological Map of the Antamayo Project
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7.2.2 Structure The structure was mapped by Angeles (2011) and Oban and is shown in Figure 7.6. The Chequiacocha Fault, in the west, is a reverse fault that dips steeply southwest and puts Goyllarisquisga Group over Celendn Formation and Jumasha 4 Member. This is a regional scale fault at least 140 km long. There is an imbricate slice of Jumasha 3 Member between it and the footwall Pucamachay Fault. To the east, the Jumasha Formation forms a major anticline, the Muki Anticline, interpreted as a back-thrust anticline. The Jumasha 2 Member outcrops in the core of the anticline, and the Jumasha 2 Member up to the Celendn Formation outcrop on the limbs. There is an intrusion in the anticlinal axis. The anticline becomes more open and broader going along strike to the southeast, in the Siete Zone, possibly forming a flat segment to the ramps on either side. There are minor folds and imbricate thrusts in the Marker Member. Going to the northwest, there is a syncline with a core of Jumasha 3 Member outcropping. There are a number of strike slip faults with principal orientations WSW-ENE to SW-NE with dextral movement. The faults trending E-W to WNW-ESE have sinistral movement. 7.2.3 Intrusive Rocks Six types of intermediate to felsic, equigranular to porphyritic intrusive rock have been mapped on surface in the form of abundant dikes, sills and stocks and are shown in Figure 7.6 (Warscheid, 2012). They form two main clusters at the Chequiacocha-NW zones (2,500 m by 1,500 m) and the Yanacocha-Muki-Siete zones (2,200 m by 1,000 m), which may be continuous beneath valley alluvium, and a smaller cluster at the Huinchos-Nena zone (700 m by 500 m). Feldspar-biotite porphyry is the most common intrusive rock in outcrop and in core. It forms dikes. It has phenocrysts of plagioclase, biotite, some hornblende and minor quartz, with 30-40% matrix. The plagioclase often has illite alteration. It is up to 1.5 km long on the east side, and 0.5 to 1.5 km long on the west side. Quartz monzodiorite outcrops in the Nena zone. It is a holocrystalline rock with plagioclase, biotite, hornblende and quartz, with weak argillic alteration. Tonalite-granodiorite outcrops in the Chequiacocha zone and has abundant phenocrysts of quartz and plagioclase, with accessory hornblende and biotite. It is associated with skarn halos.
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Rhyolite outcrops on the northeast flank of the Muki Anticline for 360 m by 30 to 70 m wide with N30W strike. It has quartz phenocrysts in an aphantic, quartzo-feldpathic matrix, with a spherulitic texture in places. It is altered to illite-smectite and is strongly fractured and brecciated with calcite, copper oxides and iron oxides. Microdiorite outcrops for 1.4 km by 0.05 to 0.2 km wide in the north on the west side of the Muki Anticline, and is parallel to the anticline axis. Diorite outcrops in the Chim Formation quartzite in the west part and forms the largest intrusion with an area of 750 m N-S by 250 m. It is medium grained, equigranular to porphyritic, composed of plagioclase, biotite and hornblende. Tejada (2003) described seven types of igneous rocks from historic drill core and outcrop. He named them the Muki Monzodiorite, Nena Quartz-Monzonite, Antamayo Quartz Feldspar Porphyry, undifferentiated felsic porphyry dikes, quartz-feldspar porphyritic flow, spherulitic rhyolite, and a microdiorite dike. He dated magmatic biotite from three intrusions sampled in historic drill core using the argon-argon step-heating method. He concluded that the oldest intrusion is the Nena quartz monzodiorite, with ages of 46.43 1.02 Ma and 46.29 1.37 Ma, followed by the Antamayo Quartz Feldspar Porphyry at 45.81 1.1 Ma. Hydrothermal sericite associated with the Antamayo Quartz Feldspar Porphyry was also dated at 45.3 Ma (average of two determinations, no standard deviation given). The four ages overlap statistically at one standard deviation and give a middle Eocene age. Three main types of intrusive rocks were distinguished in the deep drill holes: Pre-mineral diorite (logging code EIDP) as dikes or sills. It is a medium grained, crowded diorite with plagioclase and biotite phenocrysts, with weak to strong secondary biotite alteration. When fresh this rock is magnetic (I-Type). Inter-mineral quartz diorite porphyry (IDP) with phenocrysts of quartz, biotite and plagioclase, moderate to strong secondary biotite and potassium feldspar alteration, and A type quartz veinlets. Only seen in hole ANT-13-003, and only outcrops as a dike at the Siete zone. Post-mineral green diorite (PMPA), seen in a 224 m intersection at Chequiacocha in hole ANT-13-005. There are also rhyolite dikes of unknown age relative to mineralization, probably latemineral.
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Figure 7.6 Map of structures and intrusions at the Antamayo Project
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7.2.4 Alteration The minor porphyry intrusions may have potassic alteration with secondary potassium feldspar, biotite and in some cases, quartz veinlets. They can also have phyllic alteration (sericite-illite), argillic alteration and propylitic (chlorite, calcite) alteration. These alteration assemblages are typical of porphyry copper systems. Endoskarn alteration also occurs with pyroxene and garnet. However, the equigranular diorite intrusions are often unaltered. The carbonates have thermal metamorphism to biotite and pyroxene hornfels, and to marble, formed from impure and pure limestones, respectively. They also have prograde exoskarn alteration to pyroxene (diopside) and garnet. There are also overprinting retrograde skarn assemblages of chlorite, dark green smectite, calcite (and occasionally actinolite, quartz and sericite) with pyrrhotite, sphalerite and chalcopyrite, and minor pyrite, magnetite and molybdenite in places. Hornfels and marble form extensive alteration zones on surface at Chequiacocha-Yolvi (1,300 m by 1,000 m) and Yanacocha-Muki-Siete (2,000 m by 1,100 m). These are coincident with the main concentrations of minor porphyry intrusions. The skarns form small bodies in outcrop and wider zones in some deep drill holes. The distribution of alteration as mapped on surface is shown in Figure 7.7.
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Figure 7.7 Map of alteration at the Antamayo Project
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7.3 Mineralization
Mineralization occurs in altered intrusive rocks and in carbonates with skarn, hornfels and marble alteration. Mineralization in intrusive rocks comprises pyrite, chalcopyrite, pyrrhotite, galena and sphalerite, plus weathering products jarosite, hematite, goethite, cerussite, malachite and covellite. Mineralization in skarns is chalcopyrite in disseminated to sub-massive form, as well as sphalerite, pyrite, pyrrhotite, magnetite, galena, marcasite and molybdenite. Ore microscopy has identified microscopic tennantite-tetrahedrite, bismuthinite and cubanite (Ocharan & Lehne, 2000). Galena occurs in veins near to the metasomatic zones, such as Chequiacocha, and in distal areas such as the NW Zone. Weathering products are jarosite, hematite, goethite, lepidocrocite, cerussite, covellite, malachite and other blue-green copper oxides, forming gossans in places. Manganese oxides occur at Chequiacocha and Flor de Cant, associated with high silver grades. Oxidation is superficial and there is no significant depth of oxidation due to glacial erosion. Sulfides occur at surface and in shallow mines. The interpreted evolution of the alteration and mineralization, based on deep drilling by Oban, is: 1. Wide zones of pervasive marble and biotite to pyroxene hornfels. The wide zones indicate a large intrusive heat source. The pre-mineral diorite dikes or sills may be related to this intrusion. 2. Prograde, pyroxene (diopside)-rich skarn, with pyroxene>garnet, with sulfides including chalcopyrite. Forms both endoskarn and exoskarn. These form narrow zones at surface and wide zones in some deep drill holes. This is a prograde skarn formed from marble and hornfels. The dominance of pyroxene indicates a reduced hydrothermal fluid. The intrusive source of the fluids has not been intersected. 3. The pyroxene>garnet skarn is overprinted in structural zones by retrograde skarn with chlorite, dark green smectite, minor calcite and sulfides comprising pyrrhotite which is dominant, indicating a reducing fluid, with chalcopyrite, sphalerite, minor pyrite, magnetite and molybdenite. The sulfides may form short, high grade, massive zones (10s cm long). The following core photos show typical styles of alteration and mineralization (Figure 7.8 to Figure 7.11).
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Figure 7.8 Diopside-garnet exoskarn with blebs of coarse chalcopyrite and pyrrhotite. Hole ANT-13-005, 465.63-467.15 m. Sample 1.52 m grading 2.30% Cu, 30 ppm Mo, 0.77% Zn, 53 ppm Ag, 0.037 ppm Au.
Figure 7.9 Semi-massive chalcopyrite in garnet exoskarn. Cut by pyrite-calcite vein. Hole ANT-13-003, 354.04-354.42 m. Sample 0.38 m grading 10.50% Cu, <10 ppm Mo, 113 g/t Ag, 0.23% Zn, 0.062 ppm Au.
Figure 7.10 Massive pyroxene exoskarn with disseminated pyrrhotite and minor chalcopyrite. Hole ANT-13-004, 771.32-772.90 m. Sample 1.58 m grading 0.41% Cu, 10 ppm Mo, 210 ppm Zn, 4 g/t Ag, and 0.004 ppm Au.
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Figure 7.11 Endoskarn in a quartz porphyry with green garnet. Hole AN02-D005 at 182.3 m, Siete Zone. From a 3.0 m sample with 1.0 ppm Ag, 0.27% Cu, 14 pm Mo.
The main zones of alteration and mineralization mapped at surface are described in the following sub-sections. 7.3.1 Siete Zone The Siete zone has interbedded hornfels and marble with quartz-pyrite veinlets. There is a zone of diopside-brown garnet skarn 10 m by 3 m in size with mantos of semi-massive chalcopyrite and pyrite. There is a 50 m wide body of feldspar-biotite porphyry dike which is considered to be the only outcrop of an inter-mineral porphyry. There are veinlets of quartz-pyrite-sphaleritechalcopyrite and of pyrite with narrow sericite halos, interpreted as D veins. The marbleisation of the limestone in hole AND02D005 has widespread pyrite and chalcopyrite. The geochemistry is anomalous in Cu, Zn, Ag and Mo. Carbonate-replacement style mineralization outcrops in the river in the valley with limestone replaced by massive pyrite and cut by veinlets of quartz-pyrite-sphalerite-chalcopyrite with halos of illite-sericite. There are seven historical drill holes in the Siete zone. These intersected 24.3 m at 0.92% Cu, 7.6 g/t Ag and 48 ppm Mo, and deeper in the same hole 34 m at 0.39% Cu and 4.0 g/t Ag (AN02D005); and 1.6 m at 1.34% Cu (AN03D007). 7.3.2 Muki Zone Mineralization occurs in discontinuous mantos with a lenticular form in the Muki zone. There is garnet-diopside skarn with retrograde alteration to actinolite, chlorite and sericite with pyrrhotite, sphalerite and chalcopyrite, veinlets of pyrrhotite-calcite, and values of Cu, Zn and Ag. There are 62
small intrusions including a feldspar-biotite porphyry with minor Cu and Zn, and a barren rhyolite. There are nine historical drill holes in the Muki zone with intersections of 7.75 m at 5.36% Cu, 1.0% Zn and 73.65 g/t Ag (AN02D001); 1.0 m at 0.14% Cu and 2.5% Zn (ADDH01); 12.1 m at 1.82% Cu and 2.31% Zn, and in the same hole 6.1 m at 1.11% Cu and 2.5% Zn (ADDH02); 13.6 m at 0.2% Cu and 0.19% Zn (ADDH07); 3.2 m at 0.1% Cu and 3.93% Zn (ADDH08); and 7.2 m at 0.39% Cu and 0.48% Zn (ADDH09). 7.3.3 Yanacocha Zone There are dikes and sills of feldspar-hornblende porphyry and rhyolite in the Yanacocha zone, with mineralization at the contacts with limestone. There is pyrrhotite-pyrite and sporadic chalcopyrite. The geochemistry is anomalous in Cu and Mo. No historical drilling was carried out in this zone. 7.3.4 Chupo and Yolvi Zones The Chupo and Yolvi zones lie on the ridge east of the Chequiacocha zone and are in Jumasha 4 Member marls with minor intrusions. There are small, irregular bodies of skarn associated with N60E and E-W trending fractures and the Antamayo Fault. There may be an intrusion with the same orientation in the middle of the outcrop. The geochemistry is anomalous in Cu, Zn and Ag in structures and their contacts. There are six historical drill holes in the zone with short intersections of Cu and Zn in some, including 1.1 m at 0.59% Cu (ADDH10), and 4.4 m at 0.69% Cu and 2.52% Zn (ADDH11). 7.3.5 Chequiacocha Zone This zone lies along the Chequiacocha Fault with quartzites on the west and Jumasha 3 Member limestones on the east, and diorite in the fault zone. The carbonates are altered to hornfels, with disseminated pyrrhotite, and marble in a semi-circular zone on the east side of Lake Chequiacocha. There is also garnet-diopside skarn associated with feldspar-biotite porphyry and tonalite, and some skarn in mantos. There are Fe, Zn, Cu oxides. There are geochemical anomalies of Cu, Mo, Zn, Pb and Ag. No historical drilling was carried out in this zone. 7.3.6 NW Zone This zone lies on the Chequiacocha Fault northwest of the Chequiacocha zone, and has quartzites on the west and Jumasha 3 Member limestones on the east, and diorite in the fault zone.
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Mineralization is related to minor diorite intrusions in quartzite, with quartz veins with galena. The geochemistry is anomalous in Pb and Ag. No historical drilling was carried out in this zone. 7.3.7 Huinchos-Nena Zone The zone has sulfide mantos and bodies associated with a quartz-monzodiorite porphyry on the steep eastern limb of the Nena Anticline. Mineralization in the mantos is sphalerite with chalcopyrite. There are two historical drill holes, one of which intersected 13.6 m at 0.44% Cu, 0.17% Zn and 3.55 g/t Ag (AN02D004). At Huinchos there is a hydrothermal breccia pipe about 200 m diameter in the Jumasha Formation with clasts of quartzite as well as limestone, cemented by calcite, quartz, minor sericite, pyrite, sphalerite and traces of chalcopyrite. 7.3.8 Flor de Cant Zone This is a newly discovered zone south of the area shown on the maps. There is brown garnet skarn with copper oxides. There are artisanal mine workings on structures in quartzite with massive manganese oxides and galena with Ag values. No historical drilling was carried out in this zone.
7.4 Deep Targets

The exploration target concept is that Antamayo represents a high level above a large zoned, Antamina-type porphyry-skarn system. The exploration model is shown in a cartoon section in Figure 8.1. The model is a simple concentric mineralized system, centered on a composite porphyry stock that first formed a large metamorphic aureole of marble and hornfels close to the intrusive center, and recrystallization of limestone outside the marble-hornfels zone. A second intrusive phase brought in the main metasomatic stage (hydrothermal event), with porphyry style mineralization in the porphyry stock, and endoskarn and exoskarn on its margins, with weaker and more erratic mineralization developed further away. Copper, zinc, silver and molybdenum mineralization came with the prograde and retrograde events, most of it probably with the retrograde event. The oxidized nature of the mineralizing intrusive rocks predicts that pyrite is the dominant iron sulfide mineral, with some magnetite, and garnet is the main prograde silicate skarn mineral in the proximal zone. However, most the skarn mineralogy observed in the deep holes is dominated by a reduced assemblage of pyroxene and pyrrhotite that can be explained by the reduction of the originally oxidized fluids by reaction with impure limestone. Another option is that the main mineralizing event is related to a reduced intrusive phase. At Antamayo, numerous minor intrusions are exposed over a large area of about 3 km by 3 km associated with widespread limestone recrystallization, hornfels and marbleisation, and minor skarn, but it has not been eroded to a sufficient depth to expose any larger skarn and porphyry 64
bodies that may be present. The deep drilling by Oban intersected with wide zones of pervasive marble, hornfels and skarn with anomalous grades of copper, zinc, silver and molybdenum in two holes. These are interpreted to be the middle zone, closer to the fluid source, and to validate the exploration model. Drilling has not yet identified a main proximal skarn or porphyry center, and these are the targets of the exploration program recommended in this report. The location of the interpreted hidden proximal intrusive center at Antamayo is not known. Its possible location is interpreted from the distribution of alteration and geophysical anomalies to be between Huinchos and Chequiacocha, mostly covered by moraine gravels and limestone with distal alteration. This is shown in a cross section in Figure 7.12. The anomalies can also be interpreted to show two separate intrusive centers at Huinchos and Chequiacocha. These are shown in plans in Figure 7.13 and Figure 7.14. The model and interpretation are described in a report by Padilla (2014).
Figure 7.12 Schematic section of the Antamayo Project between Chequiacocha and Huinchos, showing geological interpretation and targets. Section A-A oriented N50W, looking NE. Location shown in Figure 7.13and Figure 7.14. R = recrystallized limestone. M = marble. H = hornfels. R > M+H: outer zone dominated by recrystallized limestone with lesser marble, hornfels and skarn. There are limestone-replacement mantos of sphalerite-pyrrhotite with chalcopyrite and lesser pyrite, and narrow zones of prograde and retrograde skarn. M+H > R: middle zone dominated by marble and hornfels, with lesser recrystallized limestone, and wider zones of prograde and retrograde skarn with chalcopyrite, sphalerite, pyrrhotite and minor pyrite. The observed alteration and mineralization can also be explained by two separate porphyry-skarn centers located in Huinchos and Chequiacocha. Section by Padilla (2014).
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Figure 7.13 Ground magnetic data (reduced to the pole), with location of possible interpreted intrusive centers. The location of section A-A is shown (Figure 7.12). The geophysics can be explained by a single porphyry-skarn center located between the Chequiacocha and Huinchos zones, or by two separate porphyry-skarn centers located in Huinchos and Chequiacocha. Map by Padilla (2014).
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Figure 7.14 Chargeability at 3,700 masl level, with locations of possible interpreted intrusive centers. The location of section A-A is shown (Figure 7.12). The geophysics can be explained by a single porphyry-skarn center located between the Chequiacocha and Huinchos zones, or by two separate porphyry-skarn centers located in Huinchos and Chequiacocha. Map by Padilla (2014).
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8 DEPOSIT TYPES
The type of deposit target at Antamayo is a concealed oxidized calcic copper skarn with zinc, silver and molybdenum credits, related to a concealed porphyry copper deposit. The main review papers about skarn deposits are by Einaudi et al. (1981), Einaudi (1982) and Meinert et al. (2005). Skarns are a rock type defined by a relatively simple mineralogy, usually dominated by calc-silicate minerals such as garnet and pyroxene. Endoskarn refers to calcsilicate alteration of intrusive rock, presumed to be the fluid source, while exoskarn is calcsilicate replacement of limestone wall rock. Copper skarn deposits are usually zoned with proximal garnet and distal pyroxene, followed by wollastonite, vesuvianite, or massive sulfides and/or oxides near the contact between skarn and marble, called the marble front. This is followed by a zone of recrystallization and bleaching of limestone to marble. These zones propagate outwards from the fluid source. Sulfide mineralogy and metal ratios are commonly zoned relative to the pluton from proximal pyrite and chalcopyrite, followed by an increase outwards in chalcopyrite, and finally by bornite in the wollastonite zone. Most large skarn deposits record a transition from early and distal metamorphism which formed marble, hornfels, reaction skarn, and skarnoid, to later and proximal metasomatism resulting in relatively coarse grained ore-bearing skarn. Metasomatism is caused by high-temperature (>500C), high-salinity (>50 weight percent total salts) fluids of magmatic origin. With time, skarn metasomatic alteration evolves to lower temperature (<400C), hydrous, sulfide-rich assemblages with epidote, actinolite, chlorite, sericite, quartz, calcite and clay minerals, termed retrograde alteration. This is often accompanied by brecciation and is caused by an influx of cooler, lower salinity (<20 weight percent total salts) fluids that are still magmatic in origin. Copper skarn deposits form in carbonate wall rocks adjacent to porphyry copper deposits (Sillitoe, 2010). Porphyry copper systems were reviewed by Sillitoe (2010). They may contain porphyry copper deposits, with or without by-product molybdenum, gold or silver, of sizes ranging from a few million tonnes to several billion tonnes. Typical primary porphyry copper deposits have average grades of 0.5 to 1.5% Cu, <0.01 to 0.04% Mo, and 0.01 to 1.5 g/t Au, and a few gold-only deposits have grades of 0.9 to 1.5 g/t gold but little Cu (<0.1 %) (Sillitoe, 2010). The alteration and mineralization in porphyry copper systems can have a volume of many cubic kilometres of rock and are zoned outward from stocks or dike swarms, which typically comprise several generations of intermediate to felsic porphyry intrusions. Porphyry Cu Au Mo deposits are centered on the intrusions. Carbonate wall rocks can host proximal Cu-Au skarns, distal Zn-Pb and/or Au skarns, and, beyond the skarn front, carbonate-replacement Cu and/or ZnPb-Ag Au deposits, and/or sediment-hosted, distal disseminated Au deposits. High-sulfidation epithermal deposits may occur in lithocaps above porphyry Cu deposits, where massive sulphide 68
lodes tend to develop in deeper feeder structures and Au Ag-rich, disseminated deposits within the uppermost 500 m or so. Less commonly, intermediate sulfidation epithermal mineralization, chiefly veins, may develop on the peripheries of the lithocaps. The alteration-mineralization in the porphyry Cu deposits is zoned upward from barren, early sodic-calcic through potentially ore-grade potassic, chlorite-sericite, and sericitic, to advanced argillic, the last of these constituting the lithocaps, which may attain >1 km in thickness if not eroded. Low sulfidationstate chalcopyrite bornite assemblages are characteristic of potassic zones, whereas higher sulfidation-state sulphides are generated progressively upward together with temperature decline and the resultant greater degrees of hydrolytic alteration, culminating in pyrite enargite covellite in the shallow parts of the lithocaps. The porphyry Cu mineralization occurs in a distinctive sequence of quartz-bearing veinlets as well as in disseminated form in the altered rock between them. Magmatic-hydrothermal breccias may form during porphyry intrusion, with some of them containing high-grade mineralization because of their intrinsic permeability. In contrast, most phreatomagmatic breccias, constituting maar-diatreme systems, are poorly mineralized at both the porphyry Cu and lithocap levels, mainly because many of them formed late in the evolution of systems. The nearby Antamina deposit, which is used as an exploration model for Antamayo, is zoned outwards and upwards from a multiphase porphyry intrusion with subeconomic porphyry copper-molybdenum mineralization, to a central copper-only zone in brown garnet skarn, followed by a distal copper-zinc zone in green garnet skarn (Redwood, 2004). This is shown in Figure 8.1. There are some minor zones of peripheral wollastonite-diopside skarn with bornite and elevated gold. Silver, lead and bismuth values are highest in the outer part of the copper-zinc zone and adjacent marble. Molybdenite occurs in the intrusion and adjacent skarn, as well as the wollastonite-diopside skarn. Zinc grades at Antamina are much higher than in typical copper skarns. At the Magistral deposit, located 130 km northwest of Antamayo, the porphyry has economic grades of copper-molybdenum mineralization, and is surrounded by a copper skarn. There is recoverable silver, but no zinc (Sievertz et al., 2005). The favorable host rocks for skarn mineralization at Antamayo are both the marls (impure limestone) and the micritic limestones (pure limestone) of the Jumasha and Celendn Formations, by comparison with the Antamina deposit which is hosted by both the Jumasha and Celendn Formations (Redwood, 2004; Love et al., 2004), and with the Uchucchacua skarn and vein deposit, located 180 km south of Antamayo, which is hosted by the Jumasha 1 and 2 Members of micritic limestone, while the Marker Member is not mineralized and appears to have formed an aquiclude (Bussell et al., 1990).
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Figure 8.1 Exploration target model for buried Antamina-type skarn and porphyry at Antamayo. Section prepared by Oban in 2012, based on Antamina cross section from Redwood (2004).
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9 EXPLORATION
Mitsui and Teck Cominco carried out historical exploration at Antamayo by geological mapping, geochemistry and surface geophysics, followed by three drill programs. Oban has carried out exploration at Antamayo by geological mapping, geochemistry and surface geophysics with one deep drill program.
9.1 Geological Mapping

9.1.1 Historical Mitsui carried out geological mapping at 1:5,000 scale of the Muki, Chupo and Huinchos zones in 2000. There is no report of this work in the Oban database. Teck Cominco carried out geological mapping of the whole property at 1:25,000 scale, and in some areas at 1:5,000 and 1:2,000 scale in 2001-02. The work is summarized in reports by Richard & Rosas (2003), Rosas (2003) and Geoandina (2008). 9.1.2 Oban Oban carried out programs of geological mapping at 1:5,000 scale in October to December 2011 and April to May 2012. The work is summarized in a report by Werscheid (2012). The results are shown in maps in Figure 7.5 to Figure 7.7.
9.2 Geochemistry
9.2.1 Historical Mitsui excavated trenches and took 605 rock samples in 2000. There is no report of this work in the Oban database and so the qualified person cannot comment on the sampling method and the representativety of the samples. Teck Cominco collected 343 soil samples, 54 rock samples and 47 stream sediment samples in 2002-03. The work is summarized in reports by Richard & Rosas (2003), Rosas (2003) and Geoandina (2008). The samples were taken by standard methods and are considered to be representative samples with no sample biases. In total there are 659 rock samples, with results for 627 in the database for Au, Cu, Ag, Zn, Pb, Fe.
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There stream sediment samples do not plot in the drainages and there appears to be an error in the coordinates, and as a result, they have not been used by Oban and are not shown in this report. Oban has the historical data in its database. Geochemical plots of historical rock samples are shown for copper in Figure 9.1, zinc in Figure 9.2 and silver in Figure 9.3, and molybdenum in historical soil samples in Figure 9.4.
Oban have used the historical sampling as a guide to exploration and have carried out new geochemical sampling in the same areas, and is not relying on historical results to plan drilling.
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Figure 9.1 Geochemical map of copper in historical rock samples. Map prepared by Oban, December 2013.
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Figure 9.2 Geochemical map of zinc in historical rock samples. Map prepared by Oban, December 2013.
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Figure 9.3 Geochemical map of silver in historical rock samples. Map prepared by Oban, December 2013.
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Figure 9.4 Geochemical map of molybdenum in historical soil samples. Map prepared by Oban, December 2013.
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9.2.2 Oban Oban carried out several programs of rock sampling between 2010 and 2013. The sampling carried out in 2010 to 2012 is summarized in a report by Werscheid (2012). In 2013 Oban started a program of sampling of artisanal mines which is ongoing. The samples were taken using standard methods and are considered to be representative of the mineralization exposed on surface and in shallow mine workings, and free from bias. A total of 367 rock samples were collected by Oban comprising 216 rock chip, 107 rock channel, 25 chip-channel, 18 mine grab, and 1 selective samples, plus 44 QA-QC samples, for a total of 411 samples. Rock chip samples were taken with a geological hammer over an area of 3 m by 3 m. Channel samples were cut in the rock with a diamond saw with lengths between 0.6 m and 2.5 m. Chip-channel samples were taken in a line with a geological hammer. Mine grab samples were taken with a geological hammer over a panel of 1.5 m by 1.5 m. Sample numbers were marked on the rock with red paint. The range of minimum and maximum values for selected elements is shown in Table 9.1 and shows strongly anomalous peak values for Au, Ag, Cu, Fe, Pb, S and Zn, moderately anomalous peak values for As, Ba, Bi, Cd, Mo, Sb, Sn, Te and W, and weakly anomalous peak values for Hg and Se. Geochemical plots of rock samples for copper, zinc, silver and molybdenum are shown in Figure 9.5 to Figure 9.8.
Element (unit) Au ppb Ag ppm As ppm Ba ppm Bi ppm Cd ppm Cu ppm Fe % Hg ppm Mn ppm Mo ppm Pb ppm S% Sb ppm Se ppm Sn ppm Te ppm W ppm Zn ppm Minimum <0.005 <0.1 <0.5 1 <0.03 <0.05 <0.5 0.1 <1 11 <1 <0.5 <0.01 <0.1 <1 <0.3 <0.1 <0.1 8.6 Maximum 1,100 2683 994 3,450 564 1,049 132,300 50 18 12,600 3,825 311,300 >15 471 57 303 332 450 275,000
Table 9.1 Range of minimum and maximum values of rock and mine samples from Antamayo (367 samples).
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Figure 9.5 Geochemical map for copper in rock chip samples taken by Oban. Map prepared by Oban, January 2014.
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Figure 9.6 Geochemical map for zinc in rock chip samples taken by Oban. Map prepared by Oban, January 2014.
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Figure 9.7 Geochemical map for silver in rock chip samples taken by Oban. Map prepared by Oban, January 2014.
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Figure 9.8 Geochemical map for molybdenum in rock chip samples taken by Oban. Map prepared by Oban, January 2014.
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9.3 Geophysics
9.3.1 Historical Teck Cominco carried out a ground geophysical survey in 2002. The contractor was VDG del Per S.A.C. and the survey is described in a report by Pineault (2002). The survey comprised an induced polarization-resistivity survey over 28.2 line km, a ground magnetic survey of 53.86 line km on lines with a 200 m spacing over an area of 4.6 km by 3.0 km, and a differential GPS survey to produce a digital elevation model. The IP survey was carried out with a pole-dipole array with an A spacing of 100 m. Plans are shown of total magnetic field in Figure 9.9, chargeability contours at 100 m depth in Figure 9.10, and resistivity contours at 100 m depth in Figure 9.11.A location map is shown in Figure 9.12. The surveys were carried out by a well known contractor using standard techniques and are well documented, and are considered to be reliable. Oban has carried out a new, deeper IP survey over part of the same area, and has reprocessed and reinterpreted the magnetic survey.
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Figure 9.9 Total field, ground magnetic map. Map by VDG del Peru SAC, 2002. Location shown in Figure 9.12.
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Figure 9.10 Map of chargeability contours at 100 m depth. Map by VDG del Peru SAC, 2002. Magnetic survey lines shown for reference and their location is shown in Figure 9.12.
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Figure 9.11 Map of resistivity contours at 100 m depth. Map by VDG del Peru SAC, 2002. Magnetic survey lines shown for reference and their location is shown in Figure 9.12
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9.3.2 Oban Oban carried out a ground geophysical exploration program in April 2013 using contractor GeoMad SG E.I.R.L. of Peru (GeoMad). The survey comprised a deep induced polarization / resistivity and a reinterpretation of the historical magnetic data, and is described in a report by GeoMad (2013). The location of the surveys is shown in Figure 9.12. The 3D IP / resistivity survey was carried out using the offset pole dipole method with a time domain array. Ten lines oriented east-west were surveyed with a total of 18.2 line km. They were 200 m apart, with a gap of 1,200 m between the northern (Muki-Siete) and southern (Huinchos Nena) zones. The dipole spacing was 150 m, and the electrode spacing 100 m. GeoMad produced 50 m level maps, sections, block models and 3D models for chargeability, resistivity, and chargeability/resistivity ratio. The survey lines are shown in Figure 9.13. A 3D chargeability block model is shown in Figure 9.14. GeoMad also reprocessed and modelled 53.86 line km of magnetic data supplied by Oban from the survey carried out by VDG del Per S.A.C. for Teck Cominco in 2002, described above. GeoMad modelled magnetic susceptibility in 3D, and produced 50 m level maps, sections, a block model and a 3D model. The survey lines are shown in Figure 9.15. A 3D magnetic susceptibility model is shown in Figure 9.16. The survey identified anomalies in the Muki and Siete zones with chargeability greater that 30 millivolts per volt (mV/V) at depths of 300 m to 600 m, and low resistivity of 25 to below 10 ohm meters (Ohm.m), at 250 to 800 m depth, which it interpreted may be associated with skarn mineralization, with a zone of chargeability up to 24 to 29 mV/V to the east interpreted as a possible porphyry target. In the Huinchos Nena zone, the survey identified chargeability anomalies above 30 mV/V and moderate resistivity in the order of 250 Ohm.m in the deepest part, interpreted as a possible porphyry target with low values of magnetic susceptibility. The survey also identified are other zones with low resistivity, strong chargeability and high magnetic susceptibility which are interpreted as possible skarn targets. GeoMad made recommendations for 6 deep drill holes which are shown on a map of the chargeability / resistivity ratio in Figure 9.17. This formed the basis for the 5-hole drill program carried out by Oban in September to December 2013, with some modifications to targets and platforms.
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Figure 9.12 Map showing the location of the magnetic survey (2002) and the deep IP survey (2013). Oban, January 2014.
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Figure 9.13 Location map of IP / resistivity survey lines, 2013. GeoMad, 2013. Location shown in Figure 9.12.
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Figure 9.14 Oblique view looking NE of 3D block model of chargeability. GeoMad, 2013. Location shown in Figure 9.12.
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Figure 9.15 Location map of magnetic survey lines that were reprocessed by GeoMad in 2013. GeoMad, 2013. Location shown in Figure 9.12.
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Figure 9.16 Oblique view looking NW at 3D model of the magnetic susceptibility (0.0015 SI surface) with reference to topography. GeoMad, 2013. Location shown in Figure 9.12.
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Figure 9.17 Chargeability / resistivity ratio superimposed on geology with geophysical targets outlined, and recommended drill holes. GeoMad, 2013. The location of the survey lines is shown in Figure 9.12. The final location of the drill holes is shown in Figure 10.1.
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10 DRILLING
10.1 Drill Program Description
Oban carried out a program of 4,042.9 m of diamond drilling in five drill holes between 7 October and 17 December 2013. The objective was a preliminary test of the large deep skarn and/or porphyry targets. The holes had a nominal target depth of 1,000 m each. The final length varied from 553.4 m to 1,088.0 m, with an average of 808.58 m. A collar table is given in Table 10.1 and a location map in Figure 10.1. The significant intersections of Cu, Zn, Ag and Mo are listed in Table 10.2 to Table 10.5. The drill contractor was SFP Drilling S.A. of Peru using two, track-mounted, Atlas Copco CS-14c drill rigs, one of which is shown in Figure 10.2. The drill collars of the first two holes are marked by plastic pipe set in a concrete base, shown in Figure 10.3, and a plaque with the hole number and other data will be added. Similar markers will be placed on the collars of the other holes. The drill platforms will be restored. Oban carried out downhole directional surveys using a gyro Reflex instrument, with readings every 50 m. The collars were surveyed using hand-held GPS, and will be resurveyed by high precision differential GPS at a later date. The geology, results and interpretation of the drill program are summarized in a report by Padilla (2014).
UTM NORTH 8982899 8982553 8982285 8980347 8982106 ALTITUDE (m) 4304 4292 4249 4267 4376 AZIMUTH (degrees) 90 90 115 275 115 INCLINATION (degrees) -60 -60 -50 -55 -50 LENGTH (m) 623.50 797.50 1,088.00 980.50 553.4
HOLE ID ANT-13-001 ANT-13-002 ANT-13-003 ANT-13-004 ANT-13-005
UTM EAST 270354 270155 270179 271917 269353
Table 10.1 Table of drill collars of Oban drill program, 2013 Hole ID ANT-13-001 ANT-13-002* ANT-13-003 ANT-13-003* ANT-13-004 ANT-13-004 ANT-13-004 ANT-13-004 ANT-13-005* incl. From (m) 192.60 103.68 339.97 349.60 750.77 806.09 830.14 853.60 444.80 449.90 To (m) 206.00 109.86 342.00 374.05 772.90 818.66 838.53 862.37 486.30 457.57 Interval (m) 13.40 6.18 2.03 24.45 22.13 12.57 8.39 8.77 41.50 7.67 Cu (ppm) 1617 4697 7388 6477 2211 1931 1147 5443 5163 8311
Table 10.2 Table of significant Cu intersections of Oban drill holes, 2013. Cut off 1000 ppm Cu. No more than 6 m of internal dilution. * = open interval.
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Hole ID ANT-13-001 ANT-13-001 ANT-13-001* ANT-13-001* ANT-13-001* ANT-13-002* ANT-13-003 ANT-13-003* ANT-13-003* ANT-13-003* ANT-13-003* ANT-13-003 ANT-13-003* ANT-13-003* ANT-13-003* ANT-13-003 ANT-13-003 ANT-13-003 ANT-13-003 ANT-13-003 ANT-13-004 ANT-13-004 ANT-13-005 ANT-13-005 ANT-13-005* incl. incl. and and
From (m) 192.60 212.00 266.30 320.90 360.70 73.10 155.00 158.90 212.30 309.71 387.89 520.83 545.70 556.80 600.65 748.55 775.06 794.71 912.99 935.10 740.40 832.34 357.67 368.70 444.80 444.80 444.80 470.33 549.53
To (m) 206.00 215.07 267.61 330.61 365.40 89.70 157.63 180.08 215.46 311.20 390.14 522.78 548.42 558.80 606.65 753.46 783.06 800.51 915.81 949.30 742.50 834.60 361.09 382.29 551.40 457.57 452.90 474.75 551.40
Interval (m) 13.40 3.07 1.75 9.71 4.70 16.60 2.63 17.02 3.16 1.49 2.25 1.95 2.72 2.00 6.00 4.91 8.00 5.80 2.82 14.20 2.10 2.26 3.42 13.59 106.60 12.77 6.80 4.42 1.87
Zn(ppm) 3400 4487 5415 1561 1544 1703 3792 2101 2200 4131 20684 2559 1654 58605 1347 6643 1971 1394 6071 1965 2268 1661 6215 1541 3636 8735 10555 8350 15465
Table 10.3 Table of significant Zn intersections of Oban drill holes, 2013. Cut off 1000 ppm Zn. No more than 6 m of internal dilution. * = open interval.
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Hole ID ANT-13-002* ANT-13-003 ANT-13-003 ANT-13-003 ANT-13-003 ANT-13-003 ANT-13-005* ANT-13-005 ANT-13-005
From (m) 103.68 168.16 349.60 793.71 912.99 940.64 444.80 493.48 549.53
To (m) 106.68 173.34 367.46 810.71 928.10 945.30 486.30 516.70 551.40
Interval (m) 3.00 5.18 17.86 17.00 5.40 4.66 41.50 23.22 1.87
Ag (ppm) 11 9 8 6 9 7 16 5 23
Table 10.4 Table of anomalous Ag intervals in Oban drill holes, 2013. Cut off 5 ppm Ag. No more than 6 m of internal dilution. * = open interval.
Hole ID ANT-13-002* ANT-13-003* ANT-13-003 ANT-13-003* ANT-13-003* ANT-13-003 incl. ANT-13-004 ANT-13-004 ANT-13-005
From (m) 702.33 212.30 341.00 348.42 376.43 853.25 881.00 708.52 775.50 394.88
To (m) 704.83 215.46 343.00 374.05 378.81 910.58 908.58 712.49 778.87 398.43
Interval (m) 2.50 3.16 2.03 24.45 2.38 57.33 27.58 3.97 3.37 3.55
Mo (ppm) 69 510 180 90 161 96 141 1178 102 100
Table 10.5 Table of anomalous Mo intervals in Oban drill holes, 2013. Cut off 50 ppm Mo. No more than 6 m of internal dilution. * = open interval.
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Figure 10.1 Plan of location of Oban drill holes, 2013 (blue) and historical drill holes (yellow). Prepared by Oban, December 2013.
Figure 10.2 Drilling hole ANT-13-005, December 2013. Showing system of water and mud tanks to avoid discharge. Photo S. Redwood.
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Figure 10.3 Collar of hole ANT-13-002 with plastic tube and concrete base. A plaque will be added. Photo S. Redwood.
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10.2 Hole Descriptions

10.2.1 ANT-13-001 Hole ANT-13-001 was drilled at in the Muki zone with an azimuth of 090 and an inclination of -60 beneath the valley, with a total length of 623.5 m. A cross section with Cu values and geological interpretation is shown in Figure 10.4. From 0 m to 165 m the hole cut limestone with erratic traces of fine grained pyrite, one 5 m dike of quartz bearing rhyolite porphyry, and a 1.5 m intersection of a premineral diorite porphyry sill, with no skarn at the contacts. From 165 m to 195 m the hole cut fine grained diorite with tremolite, calcite, chlorite and pyrrhotite (5 to 8 vol.%) with traces of chalcopyrite. From 195 m to 265 m it cut mostly limestone with patches of recrystallized limestone with veins of calcite, chlorite, pyrrhotite, sphalerite and trace chalcopyrite. Intersections included 13.4 m at 0.16% Cu and 0.34% Zn from 192.5 m, 3.1 at 0.45% Zn from 212.0 m, and 1.75 m at 0.54% Zn from 266.3 m. There is a fault breccia from 265 m to 275 m, followed by limestone from 275 m to 343 m with patches of recrystallized limestone and veins of calcite, chlorite, pyrrhotite and traces of chalcopyrite and sphalerite. The are also narrow dikes of premineral diorite with no skarn on the their margins. Grades include 9.71 m at 0.16% Zn from 320.9 m, and 4.7 m at 0.15% Zn from 360.7 m. From 343 m to 360 m there are mainly premineral diorites with weak biotitic alteration, and patches of limestone and pyroxene hornfels altered to chlorite with pyrrhotite and traces of chalcopyrite and sphalerite. From 360 m to 538 m there is a bituminous-rich limestone with fine grained pyrite which belongs to the Pariahuanca Formation. From 538 m to 623 m (end of the hole), the hole cuts a beige to dark grey, fossil-rich limestone, which is probably the Chulec Formation, with narrow dikes of rhyolite and premineral diorite, small hornfels zones, and patches of retrograde chlorite and pyrrhotite with traces of chalcopyrite and sphalerite. Having started in Jumasha Formation limestone on the west limb of the anticline, the hole was drilled towards the core of the anticline and into the underlying Pariahuanca and Chulec Formations.
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Figure 10.4 Cross section of hole ANT-13-001 showing Cu grades and geological interpretation. Oban, January 2014.
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10.2.2 ANT-13-002 Hole ANT-13-002 was drilled at in the Siete Zone with an azimuth of 090 east and an inclination of -60 beneath the valley, with a total length of 797.5 m. A cross section showing Cu grades and geological interpretation is shown in Figure 10.5. From 0 m to 103 m the hole limestone with some clay rich beds (Jumasha Formation Marker Member). From 103 m to 109 m it cut skarn of pyroxene>garnet, overprinted by retrograde chlorite, smectite, biotite skarn with pyrite>magnetite and 0.5 volume percent (vol.%) chalcopyrite with traces of sphalerite, and narrow zones with up to 3 vol.% chalcopyrite. This a manto formed at the lower contact of the Marker Member that outcrops north of the platform. It grades 6.18 m at 0.47% Cu from 103.68 m and 3.0 m at 11.0 g/t Ag from 103.68 m. From 109 m to 681 m the hole cut mostly limestone with patches of recrystallized limestone with calcite veins containing erratic zones of chlorite, pyrrhotite and traces of chalcopyrite and sphalerite. There are narrow dikes premineral diorite and rhyolite with no skarn on the their margins. From 681 m to 797 m (end of the hole) it cut bituminous, black limestone, with 3 to 10 vol. % pyrrhotite and pyrite (Pariahuanca Formation). The hole started in Jumasha Formation limestone on the west limb of the anticline, and drilled towards the core of the anticline and into the underlying Pariahuanca Formation.
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10.2.3 ANT-13-003 Hole ANT-13-003 was drilled in the Siete Zone with an azimuth of 115 east - and an inclination of -50 beneath the valley and ridge, with a total length of 1,088.0 m. A cross section showing Cu grades and geological interpretation is shown in Figure 10.6. From 0 m to 100 m it cuts recrystallized limestone with erratic veins of calcite, pyrite>pyrrhotite (1 to 2 vol.%) and sphalerite. From 100 m to 415 m it cut marble with subordinate intervals of recrystallized limestone and green pyroxene hornfels with 1 to 3 vol.% sulfide including pyrite>pyrrhotite, erratic sphalerite >chalcopyrite and traces of molybdenite in veinlets and stylolites. There are short mineralized intervals of Zn, Ag and Mo including 2.63 m at 0.38% Zn from 155.0 m, 17.02 m at 0.21% Zn from 158.9 m, 3.16 m at 0.22% Zn from 212.3 m; 5.18 m at 9 ppm Ag from 168.16 m; and 3.16 m at 510 ppm Mo from 212.3 m. There is an interval of 40 m (from 349 m to 389 m) of marble and green and red garnet > green pyroxene skarn, with pyrite>pyrrhotite, chalcopyrite, molybdenite and sphalerite associated with two narrow dikes or sills. This grades 2.03 m at 0.74% Cu from 339.97 m, and 24.45 m at 0.65% Cu from 349.6 m; 2.25 m at 2.07% Zn from 387.89 m; 17.86 m at 8 g/t Ag from 349.6 m; 2.03 m at 180 ppm Mo from 341.0 m, and 24.45 m at 90 ppm Mo from 348.42 m. One of the intrusive rocks (8 m wide from 342.0 m to 350.0 m) is a medium grained, crowded diorite with plagioclase and biotite phenocrysts, with weak secondary biotite alteration, altered to pyroxene endoskarn with disseminated pyrrhotite and minor of chalcopyrite and molybdenite. This intrusive rock is interpreted as a pre-mineral intrusion (EIDP), a common intrusive rock in all the drill holes; when fresh this rock is magnetic (I-Type). Skarn and hornfels alteration with pyrrhotite>pyrite affect the areas close its margins. The second intrusive rock (about 5 m wide from 365.0 m to 369.9 m) is a quartz diorite porphyry with phenocrysts of quartz, biotite and plagioclase, and moderate to strong secondary biotite and potassium feldspar alteration, and A type quartz veinlets. Its upper contact has red and green garnet > pyroxene skarn, with pyrite, semi-massive chalcopyrite, and minor pyrrhotite, molybdenite and sphalerite. This second intrusive rock is considered to be the only occurrence, in all the 5 drill holes, of the main intermineral intrusive phase (IDP). From 415 m to 730 m the hole cuts recrystallized limestone with erratic veins of calcite, pyrite>pyrrhotite (1 to 2 vol.%) and sphalerite within small patches of with marble. There are several short intervals with Zn and minor Mo, including 1.95 m at 0.26% Zn from 520.83 m, 2.72 m at 0.17% Zn from 545.7 m, 2.0 m at 5.86% Zn from 556.8 m, 6.0 m at 0.14% Zn from 600.65 m. From 730 m to 950 m the hole cut white marble, with minor green and red garnet, and traces of tremolite or wollastonite(?), with an average of 2 vol.% pyrrhotite, locally up to 10 vol.%. 102
Pyrrhotite is present in disseminated form, in blebs, bed replacement and in calcite-quartz veins, and is associated with chlorite-smectite with minor chalcopyrite, pyrite, molybdenite and sphalerite. There are a few, narrow diorite dikes. From 950 m to the end of the hole at 1,088 m, the rock is a fossil rich beige limestone, with subordinate zones of marble-hornfels with 5 vol.% pyrrhotite and traces of sphalerite and chalcopyrite. This zone has several short intervals of Zn and Ag including 4.91 m at 0.66% Zn from 748.55 m, 8.0 m at 0.20% Zn from 755.06 m, 5.8 m at 0.14% Zn from 794.71 m, 2.82 m at 0.61% Zn from 912.99 m, and 14.2 m at 0.20% Zn from 935.1 m; 17.0 m at 6 g/t Ag from 793.71 m, 5.4 m at 9 g/t Ag from 912.99 m, and 4.66 m at 7 g/t Ag from 940.64 m. This zone also has a wider interval of Mo of 57.33 m at 96 ppm from 853.25 m, including 27.58 m at 141 ppm from 881.00 m. The hole has multiple 0.5 to 5 m sills or dikes of the pre-mineral mineral diorite (EIDP) with erratic pyroxene>garnet skarn and pyrrhotite>pyrite mineralization located at their margins.
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10.2.4 ANT-13-004 Hole ANT-13-004 was drilled at Huinchos with an azimuth of 275 west and an inclination of 55 beneath the ridge, with a total length of 980.5 m. A cross section showing Cu grades and geological interpretation is shown in Figure 10.7. From 0 m to 599 m the hole cut recrystallized limestone with erratic patches of green hornfels and garnet with traces of pyrite>pyrrhotite. From 599 m to 642 m there is recrystallized limestone with patches of marble, and 2 to 5 vol.% pyrite in veins and stylolites. From 642m to 651 m there is a pre-mineral diorite intrusion (EIDP) with weak biotitic alteration (magnetic when fresh), with pyrrhotite>pyrite and traces of chalcopyrite on its margins. From 651 m to 696 m there is marble>limestone, with minor green garnet, smectite-chlorite, pyrite=pyrrhotite (2 vol.%) and traces of chalcopyrite. From 696 m to 700 m it cuts the pre-mineral diorite intrusion (EIDP) with weak biotitic alteration (magnetic), with 4 vol.% pyrrhotite>pyrite and traces of chalcopyrite on its margins. From 700 m to 716 m there is diorite with endoskarn of pyroxene>garnet overprinted by retrograde chlorite-pyrrhotite-chalcopyrite (2 to 5 vol.%). From 716 m to 743 m there is an intercalation of pre-mineral intrusive diorite dikes-sills (EIPD) with weak to moderate secondary biotitic alteration, pyroxene>garnet skarn, overprinting by retrograde chlorite-sulfide skarn, pyrrhotite from 2 to 10 vol.%, minor chalcopyrite and molybdenite, including 3.97 m at 1178 ppm Mo from 708.52 m. From 743 m to 790 m there is pyroxene skarn with a higher amount of sulfide in some intervals related with the margins of the early diorites and sometime away from the contacts. Sulfide mineralization is mostly associated with the retrograde skarn with 5 to 15 vol.% pyrrhotite, 0.5 to 2 vol.% chalcopyrite in clots, veins and disseminated, some sphalerite and traces of pyrite. This grades 22.13 m at 0.22% Cu from 750.77 m, 2.10 m at 0.23% Zn from 740.4 m, and 3.37 m at 102 ppm Mo from 775.5 m. From 790 m to 803 m the hole cut the pre-mineral diorite intrusion with strong secondary biotite, pyrrhotite 8 vol.% and traces of chalcopyrite. From 803 m to 860 m there is an increase of sulfide associated with prograde pyroxene and retrograde skarn (mostly with the retrograde), with 5 to 15 vol.% pyrrhotite, 1% chalcopyrite in clots, veins and disseminated, some sphalerite and traces of pyrite. Mineralized intervals are 12.57 m at 0.19% Cu from 806.09 m, 8.39 m at 0.11% Cu from 830.14 m, and 8.77 m at 0.54% Cu from 853.60 m; 2.26 m at 0.17% Zn from 832.34 m; 105
From 860 m to 925 m there is limestone>hornfels and marble, 3 vol.% pyrite and 1 vol.% pyrrhotite. From 925 m to 980.5 m there are pre-mineral diorites and marble. In summary, from 642 m to the end of the hole there are a number of pre-mineral diorite intrusions in the form of dikes or sills, a granular texture and biotite and minor plagioclase phenocrysts, and are magnetite bearing indicating they are oxidized intrusions. The maximum intersection length is about 16.8 m. They have weak to strong secondary biotite alteration. Pyroxene skarn starts at 702.5 m, and garnet appears at 711.0 m, and forms endoskarn in diorite as well as exoskarn. Retrograde skarn of chlorite, smectite(?) and calcite with pyrrhotite, chalcopyrite, sphalerite, minor pyrite and molybdenite starts at 643 m as veinlets and on intrusive contacts, and overprints skarn from 702.5 m also.
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Figure 10.7 Cross section of hole ANT-13-004 showing Cu grades and geological interpretation. Oban, January 2014
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10.2.5 ANT-13-005 Hole ANT-13-005 was drilled at Chequiacocha with an azimuth of 115 east and an inclination of -50 beneath the ridge, with a total length of 553.4 m. A cross section showing Cu grades and geological interpretation is shown in Figure 10.8. From 0 m to 224 m the hole cuts mostly green diorite with phenocrysts of biotite altered to weak chlorite and calcite with only erratic traces of pyrite-pyrrhotite-sphalerite. This diorite appears to be a post mineral intrusive phase (PMDP). From 224 m to 362 m there is limestone and recrystallized limestone, with narrow barren dioritic and rhyolitic dikes-sills. There are abundant intervals of green pyroxene hornfels and brown biotite hornfels, overprinted by chlorite with traces of pyrrhotite-pyrite-sphalerite. From 362 m to the end of the hole at 553.4 m there is predominantly green pyroxene hornfels partly replaced by pyroxene>garnet skarn, and overprinted by retrograde chlorite-clay-calcite alteration bringing most of the sulfide mineralization. This has 2 to 10 vol.% pyrrhotite, 1 to 2 vol.% pyrite, 0.25 to 5 vol.% chalcopyrite and traces of sphalerite, with short intervals including 3.42 m at 0.62% Zn from 357.67 m, 13.59 m at 0.15% Zn from 368.7 m, and 3.55 m of 100 ppm Mo from 394.88 m. The interval from 437 m to 478 m has 41 m of abundant pyrrhotite with chalcopyrite in retrograde skarn with chlorite, smectite and calcite. It grades 41.5 m at 0.52% Cu from 444.8 m, including 7.67 m of 0.83% Cu from 449.9 m; 106.6 m at 0.36% Zn from 444.8 m, including 12.77 m at 0.87% Zn from 444.8 m, and 4.42 m at 0.84% Zn from 470.33 m; and 41.5 m at 16 g/t Ag from 444.8 m. There is also 23.22 m at 5 g/t Ag from 493.48 m, and 1.87 m at 1.55% Zn and 23 g/t Ag from 549.53 m. In summary, the hole cuts biotite and pyroxene hornfels which has formed by thermal metamorphism marly limestone of the Jumasha 3 Member. This has been replaced by prograde, diopside>garnet skarn, which is cross cut by retrograde skarn with chlorite, smectite, calcite and sulfides (pyrrhotite, chalcopyrite, sphalerite, minor molybdenite). The altered zone has only a few, narrow pre-mineral quartz diorite dikes with coarse phenocrysts of plagioclase and biotite.
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Figure 10.8 Cross section of hole ANT-13-005 showing Cu grades and geological interpretation. Oban, January 2014
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10.3 Results
The deep drilling intersected wide zones of pervasive marble, hornfels and skarn with anomalous grades of copper, zinc, silver and molybdenum. These are interpreted to be the middle zone, closer to the fluid source, and to validate the exploration model. 10.3.1 Copper Copper values vary from below detection to 10.5%, with 160 samples (18.4%) equal to or above 1,000 ppm, and 11 samples equal to or above 10,000 ppm (1.0%). The longest intervals of copper are 41.50 m at 0.52% Cu (ANT-13-005, 444.80 to 486.30 m), including 7.67 m at 0.83% Cu (449.90 to 457.57 m), and 24.45 m at 0.65% Cu (ANT-13-003, 349.60 to 374.055 m). Hole ANT-13-001 returned 13.4 m at 0.16% Cu (192.60 to 206.00 m), and ANT-13-002 returned 6.18 m at 0.50% Cu (103.68 to 109.86 m). Hole ANT-13-003 returned 2.03 m at 0.74% Cu (339.97 to 342.0 m) and 24.45 m at 0.65% Cu (349.60 to 374.055 m). Hole ANT-13-004 reported 22.13 m at 0.22% Cu (750.77 to 772.30m), 12.57 m at 0.19 % Cu (806.09 to 818.66 m), 8.39 m at 0.11% Cu (830.14 to 838.53 m), and 8.77 m at 0.54 % Cu (853.60 to 862.37 m). Hole ANT-13-005 returned 41.50 m at 0.52% Cu (444.80 to 486.30 m), including 7.67 m at 0.83% Cu (449.90 to 457.57 m). 10.3.2 Zinc Zinc values vary from below detection to 11.6%, with 178 samples (20.5%) equal to or above 1,000 ppm, and 23 samples equal to or above 10,000 ppm (1.0%). The longest intervals of zinc are 106.60 m at 0.36% Zn (ANT-13-005, 444.80 to 551.40 m), including 6.80 m at 1.06% Zn (444.80 to 452.90 m), and 17.02 m at 0.21% Zn (ANT-13-003, 158.90 to 180.08 m). Hole ANT-13-001 has several short intervals of anomalous zinc including 13.40 m at 0.34% Zn (192.60 to 206.00 m), 3.07 m at 0.45% Zn (212.00 to 215.07 m), 1.75 m at 0.54% Zn (266.30 to 267.61 m), 9.71 m at 0.16% Zn (320.90 to 330.61 m) and 4.70 m at 0.15% Zn (360.70 to 365.40 m). Hole ANT-13-002 reported 16.60 m at 0.17% Zn (73.10 to 89.70 m).
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Hole ANT-13-003 reported several short intervals of zinc including 2.63 m at 0.38% Zn (155.00 to 157.63 m), 17.02 m at 0.21% Zn (158.90 to 180.08 m), 3.16 m at 0.22%% Zn (212.30 to 215.46 m), 1.49 m at 0.41% Zn (309.71 to 311.20 m), 2.25 m at 2.07% Zn (387.89 to 390.14 m), 1.95 m at 0.26% Zn (520.83 to 522.78 m), 2.72 m at 0.17% Zn (545.70 to 548.42 m), 2.00 m at 5.86% Zn (556.80 to 555.80 m), 6.00 m at 0.13% Zn (600.65 to 606.65 m), 4.91 m at 0.66% Zn (748.55 to 783.06 m), 8.00 m at 0.20% Zn (775.06 to 783.06 m), 5.80 m at 0.14% Zn (794.71 to 800.51 m), 2.82 m at 0.61% Zn (912.99 to 915.81 m), and 14.20 m at 0.20% Zn (935.10 to 949.30 m). Hole ANT-13-004 reported only two short intervals of zinc of 2.10 m at 0.23% Zn (740.40 to 742.50 m) and 2.26 m at 0.17% Zn (832.34 to 834.60 m). Hole ANT-13-005 reported 3.42 m at 0.62% Zn (357.67 to 361.09 m), 13.59 m at 0.15% Zn (368.70 to 382.29 m), and 106.60 m at 0.36% Zn (444.80 to 551.40 m), including 6.80 m at 1.06% Zn (444.80 to 452.90 m), 4.42 m at 0.84% Zn (470.33 to 474.75 m) and 1.87 m at 1.55% Zn (549.53 to 551.40 m). 10.3.3 Molybdenum, Silver, Gold, Lead and Bismuth Molybdenum values vary from below detection to 4,950 ppm, with 73 samples (8.4%) greater than or equal to 50 ppm Mo, and 39 samples greater than or equal to 100 ppm Mo. Hole ANT13-003 is the only hole reporting significant, continuous Mo anomalies which include 24.45 m at 90 ppm Mo (348.42 to 374.05 m) and 57.33 m at 96 ppm Mo (853.25 to 910.58 m), including 27.58 m at 141 ppm Mo (881.00 to 908.58 m). Other holes report a few short intervals including 3.16 m at 510 ppm Mo (ANT-13-003, 212.30 to 215.46 m), 3.97 m at 1178 ppm Mo (ANT-13004, 708.52 to 712.49 m) and 3.55 m at 100 ppm Mo (ANT-13-005, 394.88 to 398.43 m). Silver grades vary from below detection up to 141 ppm in individual samples, with 58 samples (6.7%) greater than or equal to 10 ppm Ag. The highest silver is in holes ANT-13-003 and ANT13-005. The longest intervals are 41.50 m at 16 g/t Ag (ANT-13-005, 444.80 to 486.30 m), 23.22 m at 5 g/t Ag (ANT-13-005, 493.48 to 516.70 m), and 17.86 m at 8 g/t Ag (ANT-13-003, 349.60 to 367.46 m). There are also some shorter intervals, the highest being 1.87 m at 23 g/t Ag (ANT-13-005, 549.53 to 551.40 m). Gold grades are very low and vary from below detection up to 0.149 ppm, with 34 samples (3.9%) greater than or equal to 0.010 ppm, and only one above 0.1 ppm. Lead grades are low and vary from below detection up to 9,700 ppm (0.97%), with only 23 samples (2.6%) greater than or equal to 1,000 ppm. 111
Bismuth values are low and vary from below detection up to 500 ppm, with only 13 samples (1.5%) above 100 ppm. Anomalous Bi often correlates with Au, Ag and Pb, suggesting the presence of minor bismuth sulfides and sulfosalts. Bismuth is a deleterious element in copper concentrates at the nearby Antamina skarn deposit, so the low levels at Antamayo are favorable for metallurgy.
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11 SAMPLE PREPARATION, ANALYSIS AND SECURITY

11.1 Historical Sampling
The protocols for sample collection and security used by Mitsui and Teck Cominco are not known. The details are based on the authors inspection of the core and examination of the sample database. The Teck Cominco first phase drill core (AN02D001 to AN02D005) was cut in half lengthwise by diamond saw. Samples were taken of 3.0 m length (with variation from 0.5 to 4.5 m for lithological contacts). The holes were sampled continuously except in limestone, and 299 samples were analyzed. In Teck Comincos second phase of drilling, only 12 samples from two holes (AN03D006 and AN03D007) were cut by diamond saw and sampled. The Mitsui core was split by mechanical splitter and sampled only in selective zones, with 178 samples analyzed. It is not known what laboratory was used by Mitsui for sample preparation and analysis of rock, soil and stream sediment samples, as no sample sheets or assay certificates were supplied to Oban. The data supplied to Oban is in Excel spreadsheets with sample number, sample type, lithology, coordinates and values for Ag, Au, Cu, Fe, Pb and Zn. For drill core, Mitsui carried out sample preparation and analysis at the ALS Chemex laboratory in Lima (now called ALS Minerals). This laboratory is ISO 9001:2008 registered and uses ISO 17025:2005 accredited methods. There are analytical certificates for the core samples. Sample preparation was by fine crushing of the sample to 70% passing -2 mm (code CRU-31), sample splitting using a riffle splitter, and pulverizing a 250 g split to 85% passing 75 microns (code PUL 31). Multielements were analyzed by aqua regia digestion with detection by inductively coupled plasma atomic emission spectrometer (ICP-AES) for 34 elements (Ag, Al, As, B, Ba, Be, Bi, Ca, Cd, Co, Cr, Cu, Fe, Ga, Hg, K, La, Mg, Mn, Mo, Na, Ni, P, Pb, S, Sb, Sc, Sr, Th, Ti, Tl, U, V, W, Zn) (code ME-ICP41). Over-limit Cu (>1%), Pb (>1%) and Zn (>1%) were repeated by aqua regia digestion and AAS (codes Cu-AA46, Pb-AA46 and Zn-AA46). Teck Cominco rock and core samples were prepared and analyzed at ALS Chemex in Lima and Vancouver. Sample preparation was by fine crushing of the sample to 70% passing -2 mm (code CRU-31), sample splitting using a riffle splitter, and pulverizing a 250 g split to 85% passing 75 microns (code PUL 31). The samples were analyzed for gold by fire assay and AAS, and for multielements by aqua regia digestion with detection ICP-AES for 35 elements (Ag, Al, As, B, Ba, Be, Bi, Ca, Cd, Co, Cr, Cu, Fe, Ga, K, La, Mg, Mn, Mo, Na, Ni, P, Pb, S, Sb, Sc, Sr, Th, Ti, Tl, U, V, W, Zn), with mercury analyzed on a second portion of the sample solution by AAS (code ME-ICP41m). Over-limit Cu (>1%) and Zn (>1%) were repeated by aqua regia digestion and AAS (codes Cu-AA46, Zn-AA46).
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There are no assay certificates or lab reports for any of the other samples. There is no QAQC documentation for the Mitsui or the Teck Cominco samples. The Teck Cominco report of the first phase of drilling (Richard & Rosas, 2003) states that they inserted one CSRM every 15 to 20 samples and that the results were satisfactory, but does not include the data or charts. The sampling and drilling was carried out by two reputable mining companies, and the core analyses were made at a certified laboratory, and there is no reason to doubt the reliability of the data. However, the data cannot be verified as a result of the incomplete documentation, missing assay certificates and missing QAQC data, and in its present form it does not conform to CIM / NI 43-101 standards. It was used by Oban to guide their exploration, and all areas of surface mineralization have been re-sampled. The drill assays cannot be used to carry out resource estimates, unless the core is re-sampled on a continuous basis, using Obans protocols for sampling, analysis and QAQC.
11.2 Oban Samples

Oban have a detailed written protocol manual for sample collection and QAQC (Harbort, 2011). The QAQC results are monitored on receipt by an Oban geologist and graphs and written reports are produced. 11.2.1 Rock Sample Collection and Security Rock chip samples were collected in a cloth or plastic bag, a sample tag inserted and the sample number written on the outside in permanent marker pen. The bags were sealed with draw cord in the case of cloth bags, or cable tie for plastic bags. The sample location was recorded by handheld global GPS and the sample description was written on a sample card. Samples were put in groups of 5 into sacks for transport. Samples were kept in the custody of the geologists in the field, were sent by company vehicle to the company office in Lima, and from there were collected by the laboratory with a sample submittal form. 11.2.2 Core Sample Collection and Security Core was removed from the tube and placed in plastic core boxes by the drillers with the runs marked by plastic or wooden blocks. A wooden lid was placed on the boxes and the boxes were sealed with plastic straps using a manual tensioner. The Oban geologists collected the core boxes from the drill rig and transported them to the logging area at the field camp. In the case of hole ANT-13-005, the boxes were hand carried for about 2 km to a temporary logging and storage area by the road, due to lack of road access to the platform. The core boxes were guarded by a watchman while at the camp or temporary storage area. At the logging area, the core was washed 114
and the boxes marked up with the intervals with indelible marker pen. The geologists made geological and RQD logs and photographed of the core. The lids were put back on the boxes and they were sealed with plastic straps, and were transported by a truck contracted by Oban to the Oban core shack in Lima. The Oban core storage and processing facility is in Huachipa in the east of Lima. It is a rented house with a secure yard with logging tables and a core saw. Core boxes are stored on wooden pallets under an awning, as there is no rainfall. A detailed geological log was made and sample intervals marked by a plastic or wooden marker in the core box with sample number and sample interval. The core was cut lengthwise by an electric diamond saw. One half of the cut core was placed in a plastic sample bag, numbered and sealed. The other half of the cut core was returned to the core box for reference. The sample length was nominally 1.0 m in mineralized core and 2.0 m in non-mineralized core, but priority to vary the length was given to lithological, alteration and mineralization contacts. The sample intervals vary from 0.12 m to 2.45 m, with an average length of 1.38 m. A total of 869 core samples were taken plus 148 QA-QC samples for a total of 1017 samples (14.6% QAQC samples). The total length of core sampled was 1,198.19 m representing 30% of the total meters drilled. Core was sampled in areas of alteration and mineralization, but rocks with no visible alteration and mineralization were not sampled. It is noted in the calculation of the average grades of mineralized intervals, in Table 10.2 to Table 10.5, that several intervals are open due to insufficient sampling. It is recommended that sample intervals be extended, and that short gaps not be left between sample intervals. The samples were numbered consecutively. A sample card was completed with the sample interval and brief description, and a tear-off tag put in the sample bag. The cut core samples were collected in a plastic bag, a sample tag inserted and the sample number written on the outside with permanent marker pen. The bags were sealed with a plastic cable tie and the weight recorded. The samples were put in groups of 10 into sacks and were collected from the Oban core shack by a representative of the by the ALS Minerals laboratory in Lima with a sample submittal form.
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11.2.3 Sample Preparation and Analysis 11.2.3.1 CIMM - CERTIMIN
The Oban rock samples from 2010 to 2012 were prepared and analyzed by CERTIMIN S.A., Lima, which was called CIMM PERU S.A. until December 2011. This laboratory is ISO 9001:2008 certified and is independent of Oban and Cumbrex. Rock and core samples were prepared by drying the sample to 100C and crushing the entire sample to >90% passing -1.7 mm (10 mesh), then make a 250 g split using a riffle splitter, and pulverize the split to >85% passing -75 microns (-200 mesh) (lab code G0634, method IC-PMM01). CERTIMIN / CIMM analyzed samples for gold by fire assay with an atomic adsorption spectrometer (AAS) finish on a 50 g sample (code G0107, method IC-EF-01). Multielement geochemical analyses of rock samples were done by an aqua regia digestion (3:1 hydrochloric acid: nitric acid) with detection by inductively coupled plasma atomic emission spectrometer (ICP-AES) and inductively coupled plasma mass spectrometer (ICP-MS) for 52 elements in a trace and ultra-trace package (code G0587, method IC-VH-88). Over limit samples for silver (>10 g/t), copper (>1%), lead (>1%) and zinc (>1%) were repeated by aqua regia digestion and AAS (method IC-VH-15, codes G0001, G0038, G0076 and G0387 respectively). Very high grade silver samples (>1,000 g/t) were repeated by fire assay and gravimetry (method IC-EF-15, code G0008). Very high grade lead samples (>30%) were analyzed by wet chemistry (method IC-VH-11, code G0339). 11.2.3.2 AGQ Peru
Rock samples in April and July 2013 was prepared and analyzed by AGQ Peru S.A.C., a subsidiary of AGQ of Spain, at their laboratory in El Callao, Lima. The company is ISO 17025:2005 accredited, and is independent of Oban. Sample preparation was by crushing of the sample to 85% passing 10 mesh, sample splitting, pulverizing a 1 kg split to 85% passing 200 mesh, and splitting to obtain a 200 g sample pulp. Gold was analyzed by fire assay on a 30 g sample with AAS finish. A 34 multielement package (Al, Ag, As, Ba, Be, Bi, Ca, Cd, Co, Cu, Cr, Fe, Ga, Hg, K, Li, Mg, Mn, Mo, Na, Ni, P, Pb, S, Sb, Sc, Se, Sn, Sr, Te, Ti, Tl, V, Zn) was analyzed by aqua regia digestion (first batch) or four acid digestion (second batch), with detection by ICP-AES. Over limit samples for Ag (>100 ppm), Cu, Pb and Zn (>10,000 ppm) were reanalyzed by aqua regia or four acid digestion and AAS. Cu and Zn >10% by this method were reanalyzed by the volumetric method. 116
11.2.3.3
ALS Minerals
The Oban core samples, as well as rock samples taken in December 2013, were prepared and analyzed by ALS Minerals at their laboratory in Callao, Lima. The company is ISO 9001:2008 registered and uses ISO 17025:2005 accredited methods, and is independent of Oban. On reception each sample was weighed and logged in with a barcode. Sample preparation was by fine crushing of the sample to 70% passing -2 mm or better (code CRU-31), sample splitting using a riffle splitter, and pulverizing a 250 g split to 85% passing 75 microns or better (code PUL 31). Gold was analyzed by fire assay of a 30 g sample split with detection by inductively coupled plasma atomic emission spectrometer (ICP-AES) with a detection range of 0.001 to 10 ppm (code Au-ICP21). Multielements were analyzed by a four acid near-total digestion with detection by ICP-AES for 33 elements (Ag, Al, As, Ba, Be, Bi, Ca, Cd, Co, Cr, Cu, Fe, Ga, K, La, Mg, Mn, Mo, Na, Ni, P, Pb, S, Sb, Sc, Sr, Th, Ti, Tl, U, V, W, Zn) (code ME-ICP61a). This method is designed for low grade mineralized materials and provides better accuracy and precision than other multielement ICP methods. High grade Cu and Zn (>10%) were re-analyzed by four acid digestion and ICP-AES finish (code OG62). 11.2.4 Quality Assurance & Quality Control (QA-QC) 11.2.4.1 Rock Samples
QA-QC samples were inserted for rock samples at the rate of 1 certified standard reference material (CSRM) per 20 samples, 1 blank per 20 samples, and 1 field duplicates every 50 samples. A total of 44 QA-QC samples were inserted with 367 rock samples, equal to 10.7% of the total. The CSRM used were as follows: Cu 177 certified by WCM Minerals Ltd, Canada (www.wcmminerals.ca) for Cu (1.17%), Mo (0.174%), Ag (66 g/t) and Au (0.79 g/t) 9 samples analyzed. OxK69 certified by Rocklabs Ltd., Auckland, New Zealand (www.rocklabd.com) for Au (3.583 ppm) - 2 samples analyzed. Oreas 65a certified by Ore Research & Exploration Pty. Ltd., Australia (www.ore.com.au) for Au (0.520 ppm), Ag (7.8 ppm) and Cu (93 ppm) 4 samples analyzed.
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Oreas 152a certified by Ore Research & Exploration Pty. Ltd. for Cu (0.385%), Mo (80 ppm), Au (0.116 ppm) and S (0.921%) - 1 sample analyzed. Oreas 504b certified by Ore Research & Exploration Pty. Ltd. for Au (1.61 ppm), Ag (3.07 ppm), Cu (1.11%) and Mo (499 ppm) - 4 samples analyzed in 2013 submittals.
The certificates of the CSRM can be downloaded from the companies websites. The CSRM check analytical precision and accuracy, and sample switches. The CSRM are monitored by performance gates which are graphs with sample number or time on the x-axis and values on the y-axis. There are horizontal lines for the recommended value, 2 standard deviations (SD) and 3 SD. CSRM values within 2 SD are accepted; an isolated sample above 2 SD but below 3 SD is acceptable but is a warning; two consecutive samples above 2 SD are rejected; and any sample above 3 SD is rejected. Scatter plots of Cu, Mo and Ag for CSRM Cu 177 are shown in Figure 11.1 to Figure 11.2 and show acceptable results. Scatter plots of Au, Ag and Cu for CSRM Oreas 65a are shown in Figure 11.3 and Figure 11.4 and show acceptable results. Scatter pots for Cu, Mo, Ag and Au for CSRM Oreas 504b are shown in Figure 11.5 and Figure 11.6. The results are acceptable, but with one sample each for Mo and Ag below 3SD. There are too few samples analyzed of the other two CSRM to plot. They were monitored against the certified values in a spreadsheet. The two OxK69 samples failed for gold but the sample grade is much higher than the range of exploration sample values so it is not a suitable control. In addition, it is not certified for other elements. The single Oreas 152a sample gave acceptable results for Au, Cu and Mo.
Figure 11.1 Scatter plots of CSRM Cu 177 for Cu and Mo in rock samples.
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Figure 11.2 Scatter plot of CSRM Cu 177 for Ag in rock samples.
Figure 11.3 Scatter plots of CSRM Oreas 65-a for Au and Ag in rock samples.
Figure 11.4 Scatter plots of CSRM Oreas 65-a for Cu in rock samples.
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Figure 11.5 Scatter plots of CSRM Oreas 504b for Cu and Mo in rock samples.
Figure 11.6 Scatter plots of CSRM Oreas 504b for Ag and Au in rock samples.
The blank sample used in 2010 to 2011 was a non-certified grab sample from outcrop on a hill behind the Cumbrex office in Lima, submitted as coarse chips ( Old Cumbrex Blank). The Cu results are plotted in Figure 11.7 and show mostly high values. The Mo results are plotted in Figure 11.7 and show low anomalous values with one outlier. The blank sample may have low, inhomogeneous values of copper and molybdenum and the use of the sample was discontinued. The gold results were <0.005 to 0.005 ppm and Ag was <0.1 to 0.2 ppm. A new blank called A11-9609 was then obtained from Target Rocks, Lima (Target Blank) and submitted with samples in 2012. This is coarse vein quartz and was accompanied by an assay certificate for 20 samples assayed by Activation Laboratories Ltd, Ancaster, Ontario, Canada for gold and multielements to certify the sample. The average values are <2 ppb Au, 15.75 ppm Cu (SD 4 ppm) and 1.7 ppm Mo (SD 1.9 ppm). The values for Mo are anomalous and are not acceptable for a blank. The Cu results are plotted in Figure 11.7 and show acceptable results. The Mo results are plotted in Figure 11.7 and show anomalous values. The gold values were <0.005 ppm and the silver values <0.1 ppm. The use of this blank was thus discontinued.
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In 2013 new blanks were prepared by Oban using crushed rock purchased from Aggregados Calcareous of Lima. The coarse blank (sample number BC-8011-2013) is quartz with a inch (12.7 mm) grain size. It was quartered by Oban technicians under the supervision of a geologist into 1 kg samples in plastic bags. The fine blank (sample number BF-8011-2013) is white marble with a grain size of 50 microns. It was sent to the CERTIMIN laboratory in Lima for homogenization and splitting. A granulometry test showed 58% passing 200 mesh (75 microns). A 38.12 kg sample was homogenized in a cement mixer for 6 hours, then split into 20 fractions using a rotary splitter, then each fraction passed through a Jones riffle splitter to obtain 150 x 60 g samples, which were sealed in plastic bags. Two samples of each blank were analyzed at ALS Minerals for Au by 30 g fire assay and ICP-AES, 48 multielements by four acid digestion and ICP-MS, and Hg by cold vapor and AAS. The blank quartering and analytical procedure is described in reports by Oban and Certimin, and assay certificates by ALS Minerals. The blanks are self-certified samples rather than CSRM. In the authors opinion the blank materials and the procedures used to quarter them are well documented and meet with best practice. Two new coarse blanks (BC-8011-2013) were inserted in the 2013 rock samples. Scatter plots are shown Cu Figure 11.7, with high values, and for Mo in Figure 11.7, which is below detection. Both Au and Ag are below detection.
Figure 11.7 Scatter plot of coarse blanks for Cu and Mo for in rock samples. Results below LLD replaced by 0.5*LLD for plot.
Field duplicates were made by taking a second sample at the site of the original sample. Although only four duplicate pairs were collected, which is not a statistically representative set, a scatter plot shown in Figure 11.8 shows good repeatability.
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Figure 11.8 Scatter plot of field duplicates of rock samples for Cu.
11.2.4.2
Core samples
The CSRM used for core samples were supplied by Ore Research & Exploration Pty. Ltd., as follows: Oreas 501b certified by for Au (0.248 ppm), Ag (0.778 ppm), Cu (0.260%) and Mo (99 ppm) - 25 samples analyzed. Oreas 502b certified for Au (0.495 ppm), Ag (2.09 ppm), Cu (0.773%) and Mo (238 ppm) 14 samples analyzed. Oreas 504b certified for Au (1.61 ppm), Ag (3.07 ppm), Cu (1.11%) and Mo (499 ppm) 5 samples analyzed. The certificates of the CSRM can be downloaded from the companys website. The CSRM were selected to cover a range of grades of the elements of interest. Scatter plots of Cu, Mo, Au and Ag for CSRM Oreas 501b, 502b and 504b are shown in Figure 11.9 to Figure 11.14. Cu, Mo and Au show acceptable results, but Ag shows a lot of scatter because the values are close to the detection limit of 1 ppm.
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Figure 11.9 Scatter plots of CSRM Oreas 501b for Cu and Mo in core samples.
Figure 11.10 Scatter plot of CSRM Oreas 501b for Au and Ag in core samples. Values below LLD of 1 ppm Ag are plotted as 0.5*LLD
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Figure 11.12 Scatter plots of CSRM Oreas 502b for Au and Ag in core samples.
Figure 11.14 Scatter plots of CSRM Oreas 504b for Au and Ag in core samples.
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Forty one coarse blanks (BC-8011-13) and 21 fine blanks (BF-8011-13), for a total of 62 blanks, were analyzed with the core samples. The values are plotted relative to the lower limit of detection and reference lines of 3 times and 5 times the LLD, and are shown for Cu, Mo, Au and Ag in Figure 11.15 to Figure 11.18. The values are acceptable, although two coarse blank samples have Cu close to the upper limit which suggests some minor contamination in sample preparation.
Figure 11.15 Scatter plots of coarse blank BC-8011-13 for Cu and Mo in core samples.
Figure 11.16 Scatter plots of coarse blank BC-8011-13 for Au and Ag for core samples.
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Figure 11.17 Scatter plots of fine blank BF-8011-13 for Cu and Mo for core samples.
Figure 11.18 Scatter plots of fine blank BF-8011-13 for Au and Ag for core samples.
Core duplicates (also called coarse or field duplicates) were taken by cutting both half core samples lengthways, and taking opposite quarter core samples as original and duplicate, leaving two quarter core samples in the box for reference. A total of 22 core duplicates were taken. It is recommended that the standard method is used of one half core for the original sample and one quarter for the duplicate, leaving one quarter for reference. Scatter plots of Cu, Mo, Au and Ag are shown in Figure 11.19 and Figure 11.20. Copper and silver show a good correlation. Molybdenum is highly skewed by one very high value interpreted to be due to geological variability. Gold shows a very poor correlation as the values are close to the lower limit of detection of 0.001 ppm.
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Figure 11.19 Scatter plots of core duplicates for Cu and Mo.
Figure 11.20 Scatter plots of core duplicates for Au and Ag. Values below LLD are plotted as 0.5*LLD
Fine (or preparation) duplicates were prepared by inserting an empty bag with a sample number in the sample stream, and instructing the laboratory to prepare a second pulp of the selected sample. A total of 20 were taken. Scatter plots for Cu, Mo, Au and Ag are shown in Figure 11.21 and Figure 11.22. All elements show a good correlation which is better than that of the core duplicates due to the homogenization of the samples by sample preparation, showing that the sample preparation procedures are adequate.
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Figure 11.21 Scatter plots of fine duplicates of core for Cu and Mo.
Figure 11.22 Scatter plots of fine duplicates of core for Au and Ag.
11.3 QP Comment
Sampling, assaying and analyses of rock and core samples by Oban were are carried out using best practise procedures, and includes quality assurance and quality control procedures. There are written protocols for QA-QC and the data are monitored on every batch of results, with written reports and graphs. The QA-QC results show that the sampling, sample preparation and analytical procedures are reliable and give reproducible results. The author made a number of recommendations to improve QA-QC in a previous report (Redwood, 2012) which have been implemented by the company. It is recommended that replicate analyses (same sample pulp) and check analyses (preparation of a new pulp from the coarse reject) should also be carried out on the core samples at a second certified laboratory. 128
12 DATA VERIFICATION
The author has verified the data used upon in this report by visiting the property, revising the historical and new drill core to confirm the geology and mineralization, carrying out independent check sampling, and revising the QA-QC and assay certificates. The author has made two personal inspections of the property. The first was on 9 to 12 April 2012. This included two days in the field visiting the main areas of mineralization at the NW, Chequiacocha, Yanacocha, Siete, Muki and Muki Valley Zones. A half day was spent examining historical drill core in Huaral, a town north of Lima. Another day was spent examining historical drill core at Huaral on 1 August 2012. The second visit was made on 14 to 17 December 2013, including two days in the field to visit the zones of the Oban drilling at the Huinchas, Siete, Muki, Yanacocha and Chequiacocha Zones. Drilling of hole ANT-13-05 was in progress and core from this hole was seen in the field. One day was spent reviewing Oban drill core (from holes ANT-13-03, ANT-13-04 and ANT-13-05) in Lima on 17 December 2013. The author took five chip and grab samples of mineralization exposed on surface at various locations in the Antamayo Project on the first visit. The samples were collected in plastic bags, a sample number was inserted, and the bag was sealed with a plastic tie. The samples were kept in the authors custody, and were collected by ALS Minerals in Lima for preparation and analysis at their laboratory in Lima. The sample descriptions and summary of results are shown in Table 12.1 and the assay certificate number LI12981793 is given in Annex 1. One blank and one CSRM were inserted for QA-QC and returned acceptable values. Sample preparation was by fine crushing of the sample to 70% passing -2 mm or better (code CRU-31), sample splitting using a riffle splitter, and pulverizing a 250 g split to 85% passing 75 microns or better (code PUL 31). Gold was analyzed by fire assay of a 30 g sample split with detection by inductively coupled plasma atomic emission spectrometer (ICP-AES) with a detection range of 0.001 to 10 ppm (code Au-ICP21). Multielements were analyzed by a four acid near-total digestion with detection by ICP-AES for 33 elements (Ag, Al, As, Ba, Be, Bi, Ca, Cd, Co, Cr, Cu, Fe, Ga, K, La, Mg, Mn, Mo, Na, Ni, P, Pb, S, Sb, Sc, Sr, Th, Ti, Tl, U, V, W, Zn) (code ME-ICP61a). This method is designed for low grade mineralized materials and provides improved accuracy and precision over other multielement ICP methods.
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The independent check samples have grades of 10 to 38,200 ppm Cu (0.001 to 3.82%), <20 to 2,570 pm Pb (<0.002 to 0.26%), 80 to 50,200 ppm Zn (0.008 to 5.02%), <1 to 451 ppm (g/t) Ag, <0.001 to 0.178 ppm (g/t) Au, and <10 to 200 ppm Mo. They confirm the presence of anomalous amounts of copper, molybdenum, lead, zinc, silver and minor gold at Antamayo. A comparison of two check samples with original samples is given in Table 12.2 and shows that the original samples had higher grades, but that the same metals are present in the check samples in similar proportions. The variation is attributed to geological heterogeneity and sample type, since the chip samples were not necessarily taken in exactly the same place as the original samples, which are not well marked in the field. The author concludes that: Sampling, sample preparation, assaying and analyses have been carried out in accordance with best current industry standard practices and are suitable to plan further exploration; The exploration programs are well planned and executed and supply sufficient information to plan further exploration; Sampling, assaying and analyses includes quality assurance and quality control procedures.
130
Sample Number UTM X UTM Y UTM Z Type Length / area (m) 2.0 Cu ppm Pb ppm Zn ppm Ag ppm Au ppm Mo ppm Description
105206
269138
8081942
4354
Rock chip
10
20
80
<1
<0.001
50
Chequiacocha zone. Patchy garnet-diopside hornfels alteration of limestone with zones of marble. Minor disseminated chalcopyrite, molybdenite. Check sample of 103358. Chequiacocha zone. Irregular veins in marble of galena, pyrite, siderite, cockscomb quartz, oxidized at surface to Mn oxide, goethite. Check sample of 103359. Siete zone. Artisanal mine workings on drill road near hole AN02D005. Endoskarn and exoskarn, partly oxidised to Cu oxides. Primary chalcopyrite, pyrite. Alteration minerals quartz, epidote, actinolite, wollastonite, red & green garnet, hornfels. Muki zone. Small mine working in cliff. Quartz eye rhyolite with spherules replaced by quartz + sulfides. Matrix replaced by fine grained brown garnet. Sulfides disseminated, veinlets up to 12 mm, spherules - pyrrhotite, pyrite, minor chalcopyrite. Siete zone. Artisanal mine workings of outcrop in stream. Hornfelsed limestone with beds replaced by 10-20% sulfides (black sphalerite, fine pyrite, coarse pyrite) with quartz, calcite. Blank - coarse white vein quartz. A11-9609. Standard CU 177. 1.17% Cu, 0.174% Mo, 66 g/t Ag, 0.79 g/t Au.
105207
269138
8081941
4353
Rock grab
2.0
60
2570
1980
451
0.178
<10
105208
270452
8082181
4309
Rock grab
3.0
38200
20
7200
90
0.015
200
105209
270904
8082682
4369
Rock grab
3.0
1110
<20
300
<1
0.001
<10
105210
270315
8082368
4270
Rock grab
3.0
1000
170
50200
0.006
10
105211 105212
Blank Standard
40 11700
<20 80
40 420
<1 67
<0.001 0.812
<10 1720
Table 12.1 Sample description and results of check sampling for selected elements at Antamayo Project. Sample Number Check 105206 105207
Cu ppm Check 10 60
Cu ppm Original 211 246
Pb ppm Check 20 2570
Pb ppm Original 8.4 8714
Zn ppm Check 80 1980
Zn ppm Original 38.9 4960
Ag ppm Check <1 451
Ag ppm Original 0.4 2683
Au ppm Check <0.001 0.178
Au ppm Original <0.005 1.1
Mo ppm Check 50 <10
Mo ppm Original 18.3 4.8
Table 12.2 Comparison of check samples with original samples for selected elements.
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13 MINERAL PROCESSING AND METALLURGICAL TESTING

No metallurgical testing has been carried out on the Antamayo Project.
14 MINERAL RESOURCE ESTIMATES

There are no mineral resource estimates for the Antamayo Project that are compliant with the current CIM standards and definitions required by the Canadian NI 43-101 Standards for Disclosure of Mining Projects.
15 ADJACENT PROPERTIES
There are no adjacent properties with NI 43-101 resources. There are three nearby skarn deposits in the same belt with resources and reserves which are listed for information purposes. The qualified person has not been able to verify this information and this information is not necessarily indicative of the mineralization at the Antamayo project. The Antamina mine (Compaia Minera Antamina S. A., owned by BHP-Billiton plc 33.75%, Glencore Xstrata plc 33.75%, Teck Resources Ltd. 22.5%, Mitsubishi Corporation 10%), 38 km south of Antamayo, is a major open pit operation which started production in 2001. It had mineral resources at 31 December 2012 as follows, prepared in accordance with the Australasian Joint Ore Reserves Committee (JORC) Code (source: Xstrata Mineral Resources & Ore Reserves at 31 December 2012, www.glencorexstrata.com): Sulfide Cu: 810 Mt at 0.87% Cu, 0.099% Zn, 8.65 g/t Ag, 0.027% Mo (measured and indicated) plus 670 Mt at 0.8% Cu, 0.08% Zn, 9.1 g/t Ag, 0.02% Mo (inferred). Sulfide Cu-Zn: 336 Mt at 0.82% Cu, 1.89% Zn, 14.0 g/t Ag, 0.007% Mo (measured and indicated) plus 200 Mt @ 0.5% Cu, 1.3% Zn, 9.7 g/t Ag, 0.003% Mo (inferred). The total proved and probable ore reserves prepared in accordance with the JORC Code at 31 December 2012 were as follows (included in resources): Proved and probable ore reserves, sulfide Cu: 512 Mt at 0.92% Cu, 0.11% Zn, 8.89 g/t Ag, 0.029% Mo. Proven and probable ore reserves, sulfide Cu-Zn: 232 Mt at 0.96% Cu, 2.09% Zn, 15.3 g/t Ag, 0.007% Mo. The cut-off grade for the ore reserves varies year by year to maximize the net present value of the life of mine pit. They are based on the net value before taxes that the material will generate per hour of concentrator operation. The Contonga skarn deposit, an underground mine operated by Nyrstar of Belgium, is located 5 km north of Antamina and 33 km south of Antamayo. It had the following JORC-compliant resources and reserves as of 31 December 2012 (source: Nyrstar 2012 Mineral Resource and Mineral Reserve Statement. News release by Nyrstar, 7 February 2013): Measured and indicated mineral resources: 2.93 Mt at 4.92% Zn, 1.87% Pb, 0.75% Cu, 104.45 g/t Ag. Inferred mineral resources: 0.81 Mt at 3.16% Zn, 0.54% Pb, 0.91% Cu, 47.07 g/t Ag. Proved and probable ore reserves (included in mineral resources): 1.56 Mt at 4.80% Zn, 1.98% Pb, 0.57% Cu, 103.98 g/t Ag.
The Magistral deposit, located 130 km northwest of Antamayo, has NI 43-101 resources and reserves defined in a feasibility study made in 2008, and reported at a 0.4% Cu equivalent cut off grade (based on a 5:1 molybdenum to copper ratio; Kunter et al., 2008). The project is not in production. Measured and indicated mineral resource: 195.6 Mt at 0.51% Cu, 0.05% Mo and 2.6 g/t Ag. Inferred mineral resource: 55.4 Mt at 0.55% Cu, 0.02% Mo and 1.5 g/t Ag. Proven and probable mineral reserves: 116.8 Mt at 0.49% Cu, 0.049% Mo, 2.56 g/t Ag.
16 OTHER RELEVANT DATA AND INFORMATION

There is no other relevant data and information to be reported.
17 INTERPRETATION AND CONCLUSIONS

The Antamayo Project is an early stage exploration project for copper with zinc, silver and molybdenum in skarn and porphyry type deposits concealed at an unknown depth. Surface exploration work and shallow historical drilling has identified a large mineralizing system with widespread alteration of favorable carbonate host rocks; widespread, small porphyry and equigranular intrusions of variable composition; numerous small areas of skarn, some with high grade copper that is exploited in artisanal mines; and widespread anomalous values of copper, zinc, silver and molybdenum in rocks, soil and core. This is interpreted to represent the outer or distal zone of a concealed porphyry-skarn system. The outcropping skarn deposits have exploration potential for the definition of small, high grade copper and zinc bodies in mantotype deposits. Deep drilling by Oban has intersected wide zones of pervasive marble, hornfels and skarn with anomalous copper, zinc, silver and molybdenum values. These are interpreted to represent a middle zone closer to the hypothetical intrusive center and skarn, and to validate the exploration model. The principal exploration target is the concealed porphyry intrusion or intrusions with copper and molybdenum, and proximal skarn with copper, zinc, silver and molybdenum mineralization. Their depth is unknown: they may be lateral to areas tested by the drilling, or at greater depth. The target is a 1 billion tonne or larger porphyry-skarn system, with grades of 1% Cu or higher, plus Zn, Ag and Mo credits, with the top of the mineralization expected to be at least 300 m below the lowest elevation of the Antamayo valley (4,200 masl), and that is amenable to underground bulk mining. The potential quantity and grade are conceptual in nature as there has been insufficient exploration to define a mineral resource, and it is uncertain if future exploration will result in the target being delineated as a mineral resource. The potential target quantity and grade are based on a comparison with the nearby Antamina deposit with higher copper grades amenable to underground bulk mining. The size of the Antamayo system is permissive for the discovery of a body of this size, and the system has been shown to be mineralized with Cu with Zn, Mo and Ag. The project has a high geological risk and a high potential reward, with the main risks being the unknown depth of the main intrusive center(s) and its grades. Despite the geological risk, the system is large and has many of the correct components for the discovery of a large porphyry and/or skarn copper deposit. The author concludes that the Antamayo Project has potential for the discovery of a potentially economic copper deposit, with zinc, silver and molybdenum credits, and that further exploration by deep drilling is warranted.
The author concludes that sample collection, security, preparation and analyses at the Antamayo Project by Oban have been carried out in accordance with best current industry standard practices and are suitable to plan further exploration. Sampling and analyses include quality assurance and quality control procedures. The exploration programs are well planned and executed and supply sufficient information to plan further exploration. There are no other known significant risks or uncertainties that could reasonably be expected to affect the reliability or confidence in the exploration information.
18 RECOMMENDATIONS
It is recommended that an additional 4,000 m of deep drilling in 4 holes is carried out to test for the possible intrusive-skarn center(s) between Huinchos and Chequiacocha. A two stage exploration programme is recommended comprising surface exploration and core logging for target definition in Stage 1, followed by drilling in Stage 2. Stage 2 is conditional on the favorable outcome of results in Stage 1. The Stage 1 program comprises the following surface exploration: 6. Additional 3D IP / resistivity survey between the Siete and Huinchos zones, and south of Huinchos. 7. Extend the ground magnetic survey for several km away from the current grid to give more magnetic contrast. 8. Geological mapping and surface sampling in the area between the Siete and Huinchos zones, and south of Huinchos to Flor de Cantu. 9. Obtain a high resolution (1 m or better) satellite image for the main area of the project, and derived topographic contour map and digital elevation model (DEM) for geological mapping, interpretation and for use as a detailed topographic base map. 10. Detailed logging of all historic drill holes and continuous sampling of zones of alteration and sulfides as a check on historical results, which lack certificates and QA-QC, and to complete sampling, as only a few samples were taken from holes in Phase 2 and Phase 3. The estimated costs for the Stage 1 program are US$422,000 and the estimated time to carry out the program is 6 months. The estimated costs are given in Table 18.1.
Item Geological mapping and geochemical sampling Geochemical assays (200 samples at $45) Relog historic drill core Resample historical core (1,000 samples including QAQC at $45) IP and magnetic survey and interpretation Satellite image and derived contour map, DEM Reporting and GIS Supplies and maintenance Transportation Community relations Security Contingency 10% Total US$ 50,000 9,000 20,000 45,000 100,000 50,000 20,000 10,000 20,000 50,000 10,000 38,000 422,000
Table 18.1 Estimated budget to carry out Stage 1 exploration program at Antamayo Project.
In the Stage 2 program it is recommended that an additional 4,000 m of deep drilling in 4 holes is carried out to test for the possible deep, concealed intrusive-skarn center(s) between Huinchos and Chequiacocha. This should include the extension of hole ANT-13-005 to 1,000 m depth. The estimated costs for the program are US$1,545,000 and are listed in Table 18.2. The estimated time to carry out the program is 6 months, including 3 months of drilling.
Item Diamond drilling (4,000 m at $250 per meter contractor cost) Assays (1,000 samples at $45 per sample) Geological support Supplies and maintenance Community relations Transportation (mob-demob rigs, transport personnel, samples, core boxes, fuel, food, supplies). Environmental monitoring Security Contingency 10% Total US$ 1,000,000 45,000 100,000 100,000 50,000 50,000 50,000 10,000 140,000 1,545,000
Table 18.2 Estimated budget to carry out Stage 2 exploration program at Antamayo.
The total cost of the Stage 1 and Stage 2 exploration programs is US$1,967,000 and the estimated time to completion is 12 months. All of the permits required for exploration and drilling have been obtained for the two stages of this program.
19 REFERENCES
Angeles, C., 2011. Estratigrafa y estructura de conjunto de en area del prospecto Antamayo (Prov. De Huari, Dpto. de Ancash). Report for Cumbres Exploraciones S.A.C., November 2011, 21 p. Benavides-Cceres, V. E., 1956. The Cretaceous system in northern Peru. Bulletin of the American Museum of Natural History, vol. 108, p. 353-494. Benavides-Cceres, V., 1999. Orogenic evolution of the Peruvian Andes: The Andean cycle, in Skinner, B. J., ed., Geology and ore deposits of the Central Andes. Society of Economic Geologists Special Publication No. 7, p. 61-107. Bussell, M. A., Alpers, C. N., Petersen, U., Sheperd, T. J., Bermdez, C., & Baxter, A. N.,1990. The Ag-Mn-Pb-Zn skarn deposits of Uchucchacua, Per: Studies of structure, mineralogy, metal zoning, Sr isotopes and fluid inclusions. Economic Geology, vol. 85, p. 1348 1383. Cobbing, E. J., 1985, The tectonic setting of the Peruvian Andes, in Pitcher, W. S., Atherton, M. P., Cobbing, E. J., and Beckinsdale, R. D., eds., Magmatism at a plate edge: The Peruvian Andes. Blackie and Son, Glasgow, p. 3-12. Cobbing, E. J., 1998, The Coastal Batholith and other aspects of Andean magmatism in Peru. Boletn de la Sociedad Geolgica del Per, vol. 88, p. 5-20. Dick, L. A., 2002. Magistral Copper-Molybdenum Project, Department of Ancash, Peru. Technical report for Inca Pacific Resources Inc., 15 February 2002, 154 p. Dunne, K. P. E. & Thompson, A. J. B., 2002. Petrography Report: Antamayo Property, Central Peru. Report by PetraScience Consultants Inc., Vancouver for Teck Cominco Peru, 34 p. Einaudi, M. T., 1982. General Features and Origins of Skarns Associated with Porphyry Copper Deposits, Southwestern North America. In, Titley, S. R., editor, Advances in Geology of the Porphyry Copper Deposits, Southwestern North America. The University of Arizona Press, Tucson, Arizona, p. 185-210. Einaudi, M. T., Meinert, L. D., & Newberry, R. J., 1981. Skarn deposits. Economic Geology 75th Anniversary Volume, p. 317391. Geoandina, 2008. Reporte Tecnico, Proyecto Antamayo. Report by Geoandina de Exploraciones SAC for Mitsui Mining & Smelting Co. Ltd., June 2008, 54 p. GeoMad, 2013. Reporte de Adquisicin, Procesamiento e Interpretacin del estudio de IP/Resistividad 3D y Magnetometra en el proyecto Antamayo. Report no. G2013-01 by GeoMad SG E.I.R.L., Lima, Peru for Oban S.A.C., April 2013, 27 p. plus 164 p Annexes.
Harbort, T., 2011. Guidelines for the Development of Geochemical Assay Quality Control Products. Procedure Manual for Talisker Exploration Services Inc., Toronto, December 2011, 39 p. (a consulting company related to Oban). Jaillard, E., 1986. La sedimentation crtace dans les Andes du Prou central: exemple de la Formation Jumasha (Albien moyen suprieur Turonien suprieur) dans la rgin dOyn (dpartement de Lima). Godynamique, vol. 1, p. 97 108. Jaillard, E., & Soler, P., 1996. Cretaceous to early Paleogene tectonic evolution of the northern Central Andes (0-18S) and its relations to geodynamics. Tectonophysics, vol. 259, p. 41-53. Kunter, R., Prenn, N., Ristorcelli, S. & Elfin, S., 2008. Technical Report: Magistral Property Feasibility Study. Report by Samuel Engineering Inc., Greenwood Village, Colorado for Inca Pacific Resources Inc., 17 January 2008, 143 p. Love, D. A., Clark, A. H., Ullrich, T. D., Archibald, D. A., & Lee, J. K. W., 2003. 40Ar-39Ar evidence for the age and duration of magmatic-hydrothermal activity in the giant Antamina Cu-Zn skarn deposit, Ancash, north-central Peru. Geological Association of Canada Mineralogical Association of Canada - Society of Economic Geologists, Joint Annual Meeting, Vancouver, British Columbia, Abstracts Volume, v. 28, CD-ROM. Love, D. A., Clark, A. H. & Glover, J. K., 2004. The Lithologic, Stratigraphic, and Structural Setting of the Giant Antamina Copper-Zinc Skarn Deposit, Ancash, Peru. Economic Geology, vol. 99, p 887-916. McKee, E. H., & Noble, D. C., 1982. Miocene volcanism and deformation in the western Cordillera and high plateaus of south-central Peru. Geological Society of America Bulletin, vol. 93, p. 657-662. Mgard, F., 1984. The Andean orogenic period and its major structures in central and northern Peru. Journal of the Geological Society, vol. 141, p. 893-900. Meinert, L. D., Dipple, G. M. & Nicolescu, S., 2005. World Skarn Deposits. Economic Geology 100th Anniversary Volume, p. 29-336. Noble, D. C. & McKee, E. H., 1999. The Miocene metallogenic belt of central and northern Peru. In, Skinner, B. J., ed., Geology and ore deposits of the Central Andes. Society of Economic Geologists Special Publication No. 7, p. 155-193. Ocharan, G. & Lehne, R., 2000. [Investigacin mineralogica de 13 muestras de Antamayo.] Report for Mitsui Mining & Smelting Co. Ltd., 4 August 2000, 26 p. Padilla, R., 2014. Antamayo Cu (Zn) skarn system, Peru: December 2013 update. Report by Talisker Exploration Services Inc. for Oban Exploration Ltd., Toronto, 4 January 2014, 12 p.
Petersen, U., 1999. Magmatic and metallogenic evolution of the Central Andes. In, Skinner, B. J., ed., Geology and ore deposits of the Central Andes. Society of Economic Geologists Special Publication No. 7, p. 109-153. Pineault, R., 2002. Geophysical report on induced polarization, DGPS and magnetic surveys, Antamayo Project. Report by VDG del Per S.A.C. for Cominco Peru S.R.L., September 2002, 52 p. Redwood, S. D., 2004. Geology and Development History of the Antamina Copper Zinc Skarn Deposit, Peru. In R. H. Sillitoe, J. Perell & C. E. Vidal, editors, Andean Metallogeny: New Discoveries, Concepts, Updates. Society of Economic Geologists, Special Publication, No. 11, p. 259-277. Redwood, S. D., 2012. NI 43-101 Technical Report for the Antamayo Skarn Copper Project, Provinces of Huari and Antonio Raymondi, Department of Ancash, Peru. Report for Oban Exploration Ltd., Toronto. Effective date 3 August 2012, signature date 26 August 2012, 105 p. Richard, M. & Rosas, A, 2003. Geological, Geochemical, Geophysical and Drilling Summary Report on the first stage program on the Antamayo Property, Teck Cominco Mitsui joint venture, Central Peru (Annual Report, Antamayo Property, 2002), Teck Cominco Ltd., 29 February 2003, 25 p plus annexes. Romani, M., 1982. Gologie de la rgion minire Uchucchacua Hacienda Otuto, Prou. Thse 3e Cycle, Universit Scientifique et Mdicale de Grenoble, 176 p. Rosas, A., 2003. Report on the 2003 diamond drilling program on the Antamayo property, Teck Cominco Mitsui Joint Venture, Central Peru. Report by Teck Cominco Ltd., 28 November 2003, 13 p. plus annexes. Sbrier, M., & Soler, P., 1991. Tectonics and magmatism in the Peruvian Andes from late Oligocene time to the Present. In Harmon, R. S., & Rapela, C. W., eds., Andean magmatism and its tectonic setting. Geological Society of America Special Paper No. 265, p. 259-278. Sivertz, G., Ristorcelli, S. & Hardy, S., 2005. Technical Report on the Magistral Project Resource Update. Department of Ancash, Peru. Report by Mine Development Associates, Reno, Nevada, for Inca Pacific Resources Inc., 22 December 2005, 204 p and Appendices 435 p. Sillitoe, R. H., 2010. Porphyry Copper Systems. Economic Geology, vol. 105, p. 3-41. Sillitoe, R. H., 2011. Comments on the Antamayo, Chosicano, Arcopunco and Chibolo prospects, Peru. Report for Talisker Exploration Services Inc., 11 December 2011, 16 p.
Sillitoe, R. H. & Perell, J., 2005. Andean Copper Province: Tectonomagmatic Settings, Deposit Types, Metallogeny, Exploration, and Discovery. Economic Geology 100th Anniversary Volume, p. 845-890. Tejada, W. A., 2003. Regional setting and petrographic characterization of the Antamayo calcic Cu-Zn skarn. MSc thesis, Queens University, Kingston, Ontario, Canada, 141 p. Tejada, E. & Cceres, W., 2004. Programa de Perforacion Diamond Drill ejecutado 2004. Programa de Report by Mitsui Mining & Smelting Co., 10 December 2004. Warscheid, W., 2012. Technical report, Antamayo Prospect, San Juan de Rontoy District, Antonio Raimondi Province, Ancash Region, Per, South America. Report by Cumbres Exploraciones S.A.C., Lima for Dardo de Plata S.A.C., Lima, April 2012, 75 p. Wilson, J., 1963. Cretaceous stratigraphy of central Andes of Peru. Bulletin of the American Association of Petroleum Geologists, vol. 47, p. 1-34. Wilson, J., Reyes, L., & Garayar, J., 1967. Geologa de los cuadrngulos de Mollebamba, Tayabamba, Huaylas, Pomabamba, Carhuaz y Huari. Servicio de Geologa y Minera, Lima, Per, Boletn No. 16, 95p.
ANNEX 1: CERTIFICATE OF ANALYSIS OF CHECK SAMPLES

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NI 43-101 TECHNICAL REPORT For the

Antamayo Copper Skarn Project, Department of Ancash, Peru

Braeval Mining Corporation Oban Exploration Limited

STEWART D. REDWOOD, PhD, FIMMM, FGS

S. D. Redwood 15 January 2014

DATE AND SIGNATURE PAGE

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1.2 Property Location

1.3 Property Description

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1.4 Accessibility, Climate, Local Resources, Infrastructure and Physiography

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1.6 Geological Setting and Mineralization

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1.7 Deposit Types

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1.10 Sample Preparation, Analysis and Security

1.11 Data Verification

1.12 Mineral Processing and Metallurgical Testing

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1.13 Mineral Resource Estimates

1.14 Adjacent Properties

1.15 Other Relevant Data and Information

1.16 Interpretation and Conclusions

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2.2 Terms of Reference

2.3 Sources of Information

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2.4 Personal Inspection

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Teck Cominco t TSX UEA UIT UTM

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3 RELIANCE ON OTHER EXPERTS

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4 PROPERTY DESCRIPTION AND LOCATION

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4.2 Property Description

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5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY