Corihuarmi - Mina de ORO

Amended National Instrument
43-101 Technical Report
Corihuarmi Mine
The Corihuarmi Gold Mine is
located in the District of
Huantan, Province of Yauyos,
Department of Lima
Prepared by The Andean Consulting Group SAC for:
Mineral IRL S.A.
Effective Date: September 30th, 2017

Amended report Date: October 24th, 2017
Qualified Person:
Engr. Andres M. Rivera Zeballos

DOCUMENT INFORMATION
Author of Technical Report / Qualified Person:

Andres Rivera Project Manager
MAusIMM Chartered Professional Geologist
ID: 305739
Project Manager, The Andean Consulting Group
Effective Date: September 30th, 2017

Amended report date: October 24th, 2017
Project Number: NI_TR_MIRL_1710_VF
Version / Status: Final
Copies: Minera IRL S.A. (2)
Document prepared, review and Sign Off
Supervising and Author

Engr. Andres M. Rivera Zeballos
MAusIMM (CPGeo) - ID: 30573
NI_TR_MIRL_VF Minera IRL S.A. Status

2
October, 2017 National Instrument 43-101 Technical Report – Corihuarmi Mine Final
© The Andean Consulting Group SAC
To:
British Columbia Securities Commission

Alberta Securities Commission
Saskatchewan Financial Services Commission
The Manitoba Securities Commission
Ontario Securities Commission
Autorité des Marchés Financiers
New Brunswick Securities Commission
Securities Commission of Newfoundland & Labrador
Nova Scotia Securities Commission
Registrar of Securities, Prince Edward Island
Government of Northwest Territories, Department of Justice, Securities Registry
Nunavut Legal Registries
Registrar of Securities, Government of the Yukon Territory
CONSENT OF QUALIFIED PERSON
Consent of Qualified Person
I, Andrés M. Rivera Zeballos, do hereby consent to the public filing of the technical report titled,
“Amended National Instrument 43101 Technical Report”, dated 30 September 2017 (the “Technical Report”) by
Minera IRL.
I also consent to any extracts from or a summary of the Technical Report in the Canadian Stock
Exchange/ Market Release.
I certify that I have read the Release being filed by MIRL Corporation and that it fairly and accurately
represents the information in the sections of the Technical Report for which I am responsible.
Dated this: 30th September 2017
ORIGINAL SIGNED BY
Signature of Qualified Person
Andrés M. Rivera, MAusIMM CP(Geo)
National Instrument 43-101 Technical Report
Corihuarmi Mine
Table of Contents
1 Summary ............................................................................................... 12
1.1 Introduction .......................................................................................... 12
1.2 Location and Access ............................................................................. 13
1.3 Mining Property .................................................................................... 13
1.4 Geology and Mineralization ................................................................... 14
1.5 Mineral Resource and Mineral Reserve Estimation................................ 15
1.5.1 Geotechnical and Hydrology Studies ........................................... 17
1.5.2 Life of Mine Plan ......................................................................... 18
2 Introduction .......................................................................................... 19
2.1 Scope of Work ....................................................................................... 19
2.2 Details of Inspection ............................................................................. 19
2.3 Qualifications and Experiences ............................................................. 19
2.4 Independence ....................................................................................... 20
2.5 Principal Source of Information............................................................. 20
2.6 Effective Date ........................................................................................ 21
2.7 Abbreviations ........................................................................................ 21
3 Reliance on Others Experts.................................................................... 23
4 Property Description and Location......................................................... 23
4.1 Project Location .................................................................................... 23
4.2 Mining Property Status ......................................................................... 25
4.3 Permits ................................................................................................. 26
4.3.1 Environmental Management Instruments ................................. 26
4.3.2 Authorizations and Permissions ................................................. 28
5 Accessibility, Climate, Local Resources, Infrastructures and
Physiography ............................................................................................... 28
5.1 Project Access ....................................................................................... 28
5.2 Physiography and Climate .................................................................... 29
5.3 Local infrastructure and services .......................................................... 29
6 History .................................................................................................. 30
6.1 History of Exploration ........................................................................... 30
6.2 Mining History ...................................................................................... 30
7 Geological Setting and Mineralization .................................................... 31

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7.1 Regional Setting .................................................................................... 31
7.2 Project Geology ..................................................................................... 32
7.3 Mineralization ....................................................................................... 36
8 Deposit Types ........................................................................................ 43
9 Exploration ............................................................................................ 44
9.1 Relevant exploration works ................................................................... 45
9.2 Sampling Methods and Sample Quality ................................................ 45
9.3 Significant Results and Interpretation................................................... 45
10 Drilling .................................................................................................. 46
10.1 Type and Extent.................................................................................... 46
10.2 Procedures ............................................................................................ 48
10.2.1 Drilling ....................................................................................... 48
10.2.2 Blasthole Sampling ..................................................................... 49
10.3 Interpretation and Relevant Results ...................................................... 49
11 Sample Preparation, Analyses and Security ........................................... 50
11.1 Diamond Core Sampling ....................................................................... 50
11.2 Reverse Circulation Sampling ............................................................... 50
11.3 Surface Trench Sampling ...................................................................... 51
11.4 Logging ................................................................................................. 51
11.5 Sample Security .................................................................................... 51
11.6 Corihuarmi Mine Assay Laboratory ....................................................... 51
11.6.1 Adequacy Procedure ................................................................... 52
11.7 Comments on Assaying ......................................................................... 52
12 Data Verification ................................................................................... 53
12.1 Procedures ............................................................................................ 53
12.2 Opinion on Data Adequacy ................................................................... 53
13 Mineral Processing and Metallurgical Testing ........................................ 54
13.1 Process Description and Flowchart ....................................................... 54
13.1.1 Plant Production ......................................................................... 56
14 Mineral Resource Estimates................................................................... 59
14.1.1 Validation of Database ................................................................ 60
14.1.2 Geological Interpretation............................................................. 61
14.1.3 Interpretation of Mineralization .................................................. 62
14.1.4 Compositing and Statistics Analysis ........................................... 68
14.1.5 Variography ................................................................................ 70

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14.1.6 Block model development and grade estimation.......................... 78
14.1.7 Mineral Resource Classification .................................................. 85
14.2 Corihuarmi Mineral Resource Report .................................................... 87
14.3 Relevant Factors ................................................................................... 90
15 Mineral Reserve Estimates..................................................................... 90
15.1.1 Susan Pit .................................................................................... 91
15.1.2 Scree slope Pit ............................................................................ 94
15.1.3 Cayhua Pit.................................................................................. 97
15.1.4 Cayhua North Pit ...................................................................... 101
15.1.5 Expansion Diana Pit ................................................................. 104
15.1.6 Laura Pit .................................................................................. 106
15.1.7 Expansion Scree Slope Pit ........................................................ 110
15.2 Reserves Included in total Mineral Resources ..................................... 113
15.3 Methods .............................................................................................. 115
15.3.1 Cut-off evaluation ..................................................................... 115
15.4 Factors That May Affect the Mineral Reserve Estimate ........................ 117
16 Mining Methods ................................................................................... 117
16.1 Current Mining Methods ..................................................................... 117
16.1.1 Drill and Blast .......................................................................... 117
16.1.2 Grade Control ........................................................................... 117
16.1.3 Load and Haul .......................................................................... 118
16.2 Parameters Relevant to Mine Designs and Plans ................................. 118
16.2.1 Geotechnics .............................................................................. 118
16.2.2 Hydrogeological ........................................................................ 121
16.2.3 Mine Design.............................................................................. 121
16.2.4 Susan Pit .................................................................................. 122
16.2.5 Scree Slope Pit .......................................................................... 123
16.2.6 Cayhua Pit................................................................................ 123
16.2.7 Cayhua North Pit ...................................................................... 124
16.2.8 Expansion Diana Pit ................................................................. 125
16.2.9 Laura Pit .................................................................................. 126
16.2.10 Expansion Scree Slope Pit ................................................... 127
16.3 Mining Schedule ................................................................................. 128
16.4 Major Mining Equipment .................................................................... 130
17 Recovery Methods ............................................................................... 131

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17.1 Mill Operations ................................................................................... 131
17.2 Process Description and Flowchart ..................................................... 131
17.2.1 Plant Production ....................................................................... 137
17.3 Testwork ............................................................................................. 140
18 Project Infrastructure .......................................................................... 141
19 Market Studies and Contracts .............................................................. 142
20 Environmental Studies, Permitting and Social or Community Impact .. 142
21 Capital and Operating Costs ................................................................ 143
21.1 Capital Costs ...................................................................................... 143
21.2 Operating Costs .................................................................................. 143
22 Economic Analysis ............................................................................... 143
22.1 Assumptions External to Project ......................................................... 144
22.2 Commercial Assumptions ................................................................... 144
22.3 Taxes Depreciation and Royalties........................................................ 144
22.4 Production Assumptions ..................................................................... 145
22.5 Analysis Conclusions .......................................................................... 145
23 Adjacent Properties ............................................................................. 145
24 Other Data and Relevant and Information............................................ 145
25 Interpretation and Conclusions ........................................................... 145
26 Recommendations ............................................................................... 146
27 References ........................................................................................... 147
28 Data and Signature Page ...................................................................... 148
LIST OF TABLES
Table 1-1: Access to the Corihuarmi Mine ....................................................... 13

Table 1-2: Mining Concessions........................................................................ 14
Table 1-3: Summary of gold Mineral Resource Measured ................................ 15
Table 1-4: Mineral Reserve Proven and Probable ............................................. 17
Table 1-5: Summary of gold Mineral Reserve (Proven and Probable) ................ 17
Table 1-6: Summary LOM ............................................................................... 18
Table 2-1: Site Visit Personnel ........................................................................ 19
Table 2-2: List of Abbreviations ....................................................................... 21
Table 4-1: Mining Concessions........................................................................ 26

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Table 4-2: Approved Environmental Management Instruments ....................... 27
Table 4-3: Authorization construction and operating licenses ......................... 28
Table 5-1: Access to the project area ............................................................... 29
Table 10-1: Corihuarmi Exploration and Development Drilling ....................... 46
Table 13-1: Recovery estimates ....................................................................... 58
Table 13-2: Ratios and use of lime and cyanide and the recuperation percent 59
Table 14-1: Summary of Mineral Resource (Measured and Indicated) ............. 59
Table 14-2: Summary of Mineral Resources (Measured and Indicated) per deposit
....................................................................................................................... 68
Table 14-3: Experimental Variograms ............................................................. 71
Table 14-4: Density by zone ............................................................................ 78
Table 14-5: Block model parameters ............................................................... 79
Table 14-6: Mineralization in two zones .......................................................... 86
Table 14-7: : Gold prices used in cut-off grade determination ......................... 87
Table 14-8: Mineral Resources Indicated ......................................................... 88
Table 14-9: Mineral Resources Measured ........................................................ 88
Table 14-10: Mineral Resources Measured and Indicated by deposit* ............. 89
Table 15-1: Deposits ....................................................................................... 90
Table 15-2: Mineral Reserves (Proven and Probable) ....................................... 90
Table 15-3: Summary of gold Mineral Reserves (Proven and Probable) ............ 91
Table 15-4: Mineral Reserve (proven and probable) of Pit Susan updated on March
31st, 2017 ...................................................................................................... 91
Table 15-5: Susan Pit bench - Mineral Reserve (Proven and Probable) ............ 93
Table 15-6: Mineral Reserve (proven and probable) of Scree Slope Pit updated on
March 31st, 2017............................................................................................ 94
Table 15-7: Scree Slope Pit bench - Mineral Reserve (Proven and Probable) .... 97
Table 15-8: Mineral Reserve (Proven and Probable) of Pit Cayhua updated on
March 31st, 2017............................................................................................ 97
Table 15-9: Pit Cayhua bench - Mineral Reserve (Proven and Probable) ....... 100
Table 15-10: Mineral Reserve (Proven and Probable) of Cayhua North Pit updated
on March 31st, 2017 ..................................................................................... 101

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Table 15-11: Cayhua North Pit bench - Mineral Reserve (Proven and Probable)
..................................................................................................................... 103
Table 15-12: Mineral Reserve (Proven and Probable) of Expansion Diana Pit
updated on March 31st, 2017 ...................................................................... 104
Table 15-13: Diana Expansion Pit - Mineral Reserve (Proven and Probable) . 106
Table 15-14: Mineral Reserve (Proven and Probable) of Laura Pit updated on
March 31st, 2017.......................................................................................... 107
Table 15-15: Laura Pit - Mineral Reserve (Proven and Probable) .................... 109
Table 15-16: Mineral Reserve (Proven and Probable) of Pit Scree Slope updated in
March 31st, 2017.......................................................................................... 110
Table 15-17: Expansion Scree Slope Pit bench - Mineral Reserve (Proven and
Probable) ....................................................................................................... 113
Table 15-18: : Mineral Reserves (Proven and Probable) and Mineral Resource
(Indicated & Measured) ................................................................................. 114
Table 15-19: Mineral Reserves (Proven and Probable) included in total Mineral
Resource (Measured and Indicated)............................................................... 114
Table 15-20: Cut-off evaluation ..................................................................... 116
Table 15-21: Cut-Off Summary for Corihuarmi Mine .................................... 116
Table 16-1: Distribution of burden and spacing for each pit.......................... 117
Table 16-2: Summary Material Inventory by Deposit ..................................... 121
Table 16-3: Design Parameters Susan Pit...................................................... 122
Table 16-4: Design parameters Scree Slope Pit. ............................................ 123
Table 16-5: Design Parameters Cayhua Pit ................................................... 124
Table 16-6: Design Parameters Cayhua North Pit.......................................... 125
Table 16-7: Design Parameters Expansion Diana Pit ..................................... 126
Table 16-8: Design Parameters Laura Pit ...................................................... 127
Table 16-9: Design Parameters Extension Scree slope Pit.............................. 128
Table 16-10: Compiled production plan by years .......................................... 129
Table 16-11: List of equipment ...................................................................... 130
Table 17-1:Flowchart of the leaching process ................................................ 133
Table 17-2: Recovery estimates ..................................................................... 139
Table 17-3: Ratios and use of lime and cyanide ............................................ 140

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Table 17-4: Column Test Summary ............................................................... 141
Table 19-1: Gold price for next year .............................................................. 142
Table 21-1: Summary of operating costs by year ........................................... 143
Table 22-1: Gold price for next year .............................................................. 144
Table 22-2: Total Cost Sales and Maquila ..................................................... 144
Table 22-3: Summary of production by Year ................................................. 145
LIST OF FIGURES
Figure 4-1: Location of the Corihuarmi Mine ................................................... 24

Figure 4-2: State of Mining Property Corihuarmi ............................................. 25
Figure 7-1: Regional Geology ........................................................................... 32
Figure 7-2: Local Geology (Lithography) .......................................................... 35
Figure 7-3: Main geological block .................................................................... 36
Figure 7-4: Mineralization Areas in Corihuarmi Mine ...................................... 37
Figure 7-5: Susan and Diana zone section ...................................................... 38
Figure 7-6: Cayhua and Cayhua North zone section ....................................... 39
Figure 7-7: Laura and Scree Slope extension zone section .............................. 40
Figure 7-8: Main alteration block .................................................................... 42
Figure 7-9: Main block of metallogenic zonation.............................................. 43
Figure 10-1: Location of drill holes by area ..................................................... 47
Figure 10-2: : Extent of Blasthole Sampling .................................................... 48
Figure 11-1: Assays Comparison Original vs Duplicate ................................... 53
Figure 13-1: Flowchart of the leaching process ............................................... 55
Figure 13-2: Ore placed on pad 2008-2017 ..................................................... 56
Figure 13-3: Ounces placed on pad 2008-2017 ............................................... 57
Figure 13-4: Cumulative Gold Recovery .......................................................... 57
Figure 14-1: Density of Zone Drilling .............................................................. 61
Figure 14-2: Perspective view of alterations ..................................................... 62
Figure 14-3: Perspective view of Interpretation and general mineralization ..... 63
Figure 14-4: Perspective view section of northern Cayhua pit and Expansion
Diana .............................................................................................................. 64

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Figure 14-5: Perspective view mineralization section pit Susan ....................... 65
Figure 14-6: Perspective view mineralization section pit Cayhua ..................... 66
Figure 14-7: Perspective view mineralization section pit Laura ........................ 67
Figure 14-8: Report of the histograms and curves of the gold grades .............. 69
Figure 14-9: Trend of the variograms at blast holes ........................................ 71
Figure 14-10: Variograms pit Scree slope ........................................................ 72
Figure 14-11: Variograms pit Susan ............................................................... 73
Figure 14-12: Variograms of grade of gold - pit Cayhua .................................. 74
Figure 14-13: Variograms of grade of gold - pit north Cayhua ......................... 75
Figure 14-14: Variograms of grade of gold - pit Laura ..................................... 76
Figure 14-15: Density by zone ......................................................................... 79
Figure 14-16: Perspective view section coding of the block model Scree Slope
expansion ....................................................................................................... 80
Figure 14-17: Perspective view section coding of the block model Scree Slope . 81
Figure 14-18: Perspective view section coding of the block model Susan ......... 81
Figure 14-19: Perspective view section coding of the block model Cayhua ....... 82
Figure 14-20: Perspective view section coding of the block model Diana expansion
....................................................................................................................... 82
Figure 14-21: Perspective view section coding of the block model Laura ......... 83
Figure 14-22: Perspective view section coding of the block model North Cayhua
....................................................................................................................... 83
Figure 14-23: Zones of Pits ............................................................................. 84
Figure 14-24: Section lines in Economic Pits .................................................. 84
Figure 14-25: Mineralization in two zones ....................................................... 86
Figure 15-1: Pit Design Susan - plan view ....................................................... 92
Figure 15-2: Cross Section A - A'..................................................................... 92
Figure 15-3: Cross Section B - B' .................................................................... 93
Figure 15-4: Pit Design Scree slope - plan view ............................................... 94
Figure 15-6: Cross Section B - B' .................................................................... 95
Figure 15-7: Cross Section C - C' .................................................................... 96
Figure 15-8: Pit Design Cayhua - plan view..................................................... 98

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Figure 15-10: Cross Section B - B' .................................................................. 99
Figure 15-11: Design Cayhua North Pit - plan view ....................................... 101
Figure 15-12: Cross Section A - A'................................................................. 102
Figure 15-13: Cross Section B - B' ................................................................ 102
Figure 15-14: Pit Design expansion Diana - plan view................................... 104
Figure 15-17: Pit Design Laura - plan view ................................................... 107
Figure 15-20: Pit Design Expansion Scree Slope Pit - plan view .................... 110
Figure 16-1: Diana Pit wall ........................................................................... 120
Figure 16-2: Diana Expansion Pit Wall ......................................................... 120
Figure 16-3: Pit Design Geometry Susan ....................................................... 122
Figure 16-4: Pit Design Geometry Scree Slope ............................................... 123
Figure 16-5: Pit Design Geometry Cayhua..................................................... 124
Figure 16-6: Pit Design Geometry Cayhua North ........................................... 125
Figure 16-7: Pit Design Geometry Expansion Diana ...................................... 126
Figure 16-8: Design Geometry Laura Pit ....................................................... 127
Figure 16-9: Design Geometry Extension Scree slope Pit ............................... 128
Figure 17-1: Harvesting and smelting process ............................................... 136
Figure 17-2: Ore placed on pad 2008-2017 ................................................... 137
Figure 17-3: Ounces placed on pad 2008-2017 ............................................. 138
Figure 17-4: Cumulative Gold Recovery ........................................................ 138

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1 Summary
1.1 Introduction
The Andean Consulting Group SAC (Andean CG), was engaged by Minera IRL
S.A. (MIRLSA), subsidiary of Minera IRL Limited (MIRL) as an independent
consulting firm, to prepare this Technical Report for the Corihuarmi Gold Mine
Property (Corihuarmi Mine).
The effective date of the Technical report is March 31, 2017 with respect to the
estimation of Mineral Resources and Mineral Reserves of the Corihuarmi Mine,
the review of the geological reports available in MIRLSA and MIRL, cut-off date
for the input data, quality assurance and control (QA/QC) and future production
plans.
Andean CG has reviewed the data and methodology followed by MIRL and
concludes that it follows international codes on good professional practice, which
supports the reliability of the 3D geological model and the Estimation of Mineral
Resources obtained in March 2017. Andean CG also considers the techniques of
quality control of resource estimation were appropriate; the inverse of the
distance to the cube (ID3) and the nearest neighbor (NN) were used as alternate
interpolation methods to check the quality of ordinary kriging (OK) used in the
interpolation. Variography was adequate and adjustment of variograms with two
structures was appropriate. The classification of Mineral Resources based on the
spherical variographic adjustment and structures was also appropriate.
Andean CG has also reviewed the procedures and parameters of the mining plan
execution (Volumes, densities, recovery, dilution, etc.) and no fatal flaws have
been found that invalidate the declaration of the Mineral Reserves to March 2017
of the Corihuarmi mine. Based on this evaluation, we can affirm that the mine
plan obtained by MIRL on the basis of Modeling-3D to March 2017 (using
MineSight mining software), gives sufficient tonnage in the Mineral Reserve to
comply with the production plan until the fourth quarter 2020.

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1.2 Location and Access
The Corihuarmi Mine (100% MIRL) is located in the District of Huantan, Province
of Yauyos, Region of Lima at an altitude that varies between 4700 and 4900
m.a.s.l.
There are two main routes from Lima to the project area:
 Lima - Huancayo - Vista Alegre – Corihuarmi Mine, covering approximately

445 km
 Lima - Cañete - Lunahuana - Yauyos - Llapay - Valentine – Corihuarmi
Mine, covering approximately 370 km.
Table 1-1: Access to the Corihuarmi Mine
Lima – Huancayo – Vista Alegre – Corihuarmi Mine
ROUTE VÍA Distance Hours

Km. (Hr)
Lima – Huancayo Asphalt road 330 6.0
Huancayo – Vista Alegre Asphalt road 45 1.5
Vista Alegre–Corihuarmi Mine Dirt road 70 2.5
TOTAL 445 10
Lima – Cañete – Yauyos – San Valentín – Corihuarmi Mine
Lima – Cañete – Lunahuana Asphalt road 145 2.5
Lunahuana – Yauyos – Llapay Asphalt road 155 4.0
Llapay- San Valentín – Corihuarmi Mine Dirt road 70 3.5
TOTAL 370 10
Source: Andean CG
1.3 Mining Property

The Corihuarmi Mine is located within the mining rights areas owned by Minera
IRL S.A., listed in Table No. 1-2

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Table 1-2: Mining Concessions
NAME Area REGION PROVINCE DISTRICT

(Ha)
ECONOMIC ADMINISTRATIVE UNIT (UEA) CORIHUARMI:
Presidency Resolution N° 3473-2014-INGEMMET/PCD/PM del 12.11.2014
Assignment agreement for Mining Concessions signed with Minera Andina de Exploraciones S.A.A.
TUPE 2 600 LIMA YAUYOS HUANTÁN / TUPE
TUPE 3 600 JUNIN / LIMA HUANCAYO / CHONGOS ALTO /

YAUYOS HUANTAN / TUPE
TUPE 5 300 LIMA YAUYOS HUANTAN
VERA I 800 JUNIN / LIMA HUANCAYO / CHONGOS ALTO /

YAUYOS HUANTAN
VERA II 700 JUNIN HUANCAYO CHONGOS ALTO
VERA III 500 JUNIN / LIMA HUANCAYO / CHONGOS ALTO /

YAUYOS TUPE
MINING CONCESSION
TAMBO NUEVO 11 400 JUNIN HUANCAYO CHONGOS ALTO
CONCESSION OF BENEFIT
CORIHUARMI 127.5 JUNIN / LIMA HUANCAYO / CHONGOS ALTO /

YAUYOS HUANTAN
Source: Andean CG
1.4 Geology and Mineralization

The Corihuarmi Mine has a disseminated gold epithermal deposit that is located
in a Neogene Volcanic Belt (Tertiary Volcanic-Belt NW-SE) in the Western Andean
Range of Central Peru, Department of Junín. It is located in the Structural
Corridor of the Chonta Fault, where the epithermal deposits of Bethania and
Picomachay are also located.
The geology and geochemistry in Corihuarmi Mine shows a great similarity to

other gold deposits associated with the Andean Neogene volcanism known as
Yanacocha, Pierina, Sipán, Aruntani and Huilacollo. These volcanic rocks altered
the volcanic-sedimentary basement of agglomerates, re-worked tuffs, deposited
and interspersed with andesite flows and strata of limestone-shale from the
Casapalca-Sacsaquero Formations (unaltered) appearing on the flanks of the
Corihuarmi high-sulphidation epithermal system,
The Corihuarmi Mine is located at the north of the silver-gold epithermal belt of
southern Peru. In Corihuarmi Mine the following mineralized zones are defined:
Diana Expansion, Cayhua, North Cayhua, Scree Slope, Laura, Susan and Scree
Slope Extension (New Tambo). These represent a high-sulphidation epithermal

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system that mineralized Tertiary volcanic and sedimentary rocks. Dacites and
porphyritic latite intruded the system in the Late Tertiary. In Corihuarmi, the
geological and physical evidence suggests a volcanic caldera environment, with
intermediate to acidic volcanic rocks, vertical cylindrical breccias, pyroclasts and
tuffs, as well as rhyolitic and dacitic domes. Typical epithermal mineralization
has a paragenesis of porous silica-alunite-native sulfide. The dominant
topographic features are higher altitude siliceous outcrops aligned in a NW-SE
direction. The dominant topographic features present an NE-SE alignment. It is
also observed that the system of hydrothermal fluids responsible for gold
mineralization was provided by the coincident intersection of regional fault trends
NW, NE and E-W.
1.5 Mineral Resource and Mineral Reserve Estimation

The Technical Report summarises the Mineral Resource estimation for the
Expansion Diana, Cayhua, North Cayhua, Scree Slope, Laura, Susan and Scree
Slope, Expansion (Nuevo Tambo) deposits. A preliminary report of the Mineral
Resources was prepared by Jesus Limaylla, Geology Manager of MIRLSA, which
the Qualified Person takes responsibility for. A total Measured and Indicated
Mineral Resource of 22,762 kt with an average grade of 0.24 g / t gold and a total
of 179 koz have been reported from the 7 aforementioned deposits, details are
shown in the following Table N ° 1.3
Table 1-3: Summary of gold Mineral Resource Measured
Au
Cut Off
Zone Ton Grade Oz Gold
g/t (g/t)
SUSAN 0.09 3,767,216 0.22 26,343

CAYHUA 0.09 4,078,355 0.21 28,070
CAYHUA NORTE 0.09 2,316,044 0.35 26,332
EXPANSION DIANA 0.09 2,884,213 0.26 23,924
LAURA 0.09 3,087,309 0.22 21,420
SCREE SLOPE 0.09 1,318,107 0.31 13,167
SCREE SLOPE EXPANSION 0.09 1,403,018 0.29 13,086
TOTAL 0.09 18,854,262 0.25 152,343

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Mineral Resource Indicated
Au
Cut Off
g/t (g/t)
SUSAN 0.09 654,532 0.21 4,455

CAYHUA 0.09 680,307 0.15 3,175
CAYHUA NORTE 0.09 337,735 0.23 2,525
EXPANSION DIANA 0.09 463,134 0.19 2,790
LAURA 0.09 1,340,062 0.25 10,741
SCREE SLOPE 0.09 246,918 0.25 1,981
SCREE SLOPE EXPANSION 0.09 185,458 0.17 1,027
TOTAL 0.09 3,908,143 0.21 26,684
Mineral Resource (Measured + Indicated)
Cut Off Au Grade

Zone Ton Oz Gold
g/t (g/t)
SUSAN 0.09 4,421,747 0.22 30,792
CAYHUA 0.09 4,758,661 0.20 31,234
CAYHUA NORTE 0.09 2,653,779 0.34 28,860
EXPANSION DIANA 0.09 3,347,347 0.25 26,722
LAURA 0.09 4,427,371 0.23 32,161
SCREE SLOPE 0.09 1,565,024 0.30 15,147
TOTAL 0.09 22,762,405 0.24 179,027
Source: Andean CG
The gold estimate was completed using the Ordinary Kriging method (OK). The
Mineral Resource for the Corihuarmi Mine has been estimated as required by NI
43-101 and Canadian Institute of Mining, Metallurgy and Petroleum (CIM)
Standards, based on key criteria and confidence levels.
The Mineral Reserve estimate is in accordance with NI 43-101 and CIM

standards, based on the current operational parameters, Table 1.5 shows the
summary of reserves per deposit in the Corihuarmi Mine in.

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Table 1-4: Mineral Reserve Proven and Probable
Reserves
GRADE OUNCES
Classification TM ORE
(g/t) Au
Proven 9,918,907 0.286 91,244.41

Probable 1,010,363 0.237 7,683.59
(Proven
10,929,270 0.282 98,928.00
& Probable)
Table 1-5: Summary of gold Mineral Reserve (Proven and Probable)
PRICE $$ CUT OFF PIT TM ORE GRADE Au OUNCES Au TM WASTE TM TOTAL SR
0.111 Susan 2,375,304 0.253 19,312 522,665 2,897,969 0.240
0.097 Scree Slope 309,324 0.290 2,888 221,252 530,576 0.759
0.101 Cayhua 2,946,727 0.250 23,731 949,792 3,896,519 0.420
1,250 0.097 A. Diana 765,251 0.368 9,048 450,784 1,216,035 0.670
0.099 Laura 1,688,670 0.205 11,145 300,257 1,988,927 0.210

Cayhua
0.099 1,727,274 0.412 22,866 1,582,578 3,309,852 0.950
Norte
A. Scree
0.105 1,116,720 0.277 9,938 707,183 1,823,903 1.021
Slope
10,929,270 0.282 98,928 4,734,511 15,663,781 0.433
Source: Andean CG
It is summarized that there are a total of 10,929,270 tonnes of ore with an average
grade of 0.282 g / t gold, 98,928 ounces of gold and 4,734,511 tonnes of waste
rock.
1.5.1 Geotechnical and Hydrology Studies

According to the results of both local and global physical stability, Scree slope
and North Cayhua Expansion zones are considered stable, whose result exceeds
the value of F.S. = 1.10 for pseudostatic analysis and F.S. = 1.50 for static
analysis. was Andean CG recommends that there is a reevaluation of the
parameters of mechanical resistance of the soils involved, whose value is prone
to variation depending on environmental conditions and phenomena typical of
the area, such as erosion, water table, surface runoff and underground flows, etc.

17
To ensure hydrological stability at the final closure of the mine, Andean CG
recommends designing the construction of coronation channels and gutters
within the sidewalks. For purposes of geochemical and physical stability, Andean
CG recommends that within the cover, there be an impermeable stratum to
prevent the entrance of water produced by rainfall.
1.5.2 Life of Mine Plan

A Life of Mine Pit (LOM) design was most recently completed by Coffey Mining
following standard mining industry practice in 2010. Since then, Minera IRL has
made adjustments to the design of the open pit mine.
During the years of exploitation in Corihuarmi Mine the design has respected the
geotechnical angle for the stability of the slope proposed in the 2010 study. No
design problems were identified for either the pits or the dump sites.
The current LOM plan uses the same design, the inventory comprises seven
deposits involving Corihuarmi and summarized that there are in total 10,929,270
tonnes of ore with an average grade of 0.282 g / t gold, 98,928 Ounces of gold
placed on pad, 4,734,511 tonnes of clearing with SR of 0.475.
The LOM is summarized in table 1.6 where information is presented including

the 7 deposits for each year, from 2017 (April-December) to 2020.
Table 1-6: Summary LOM
Grade (g/t) Ounces Oz

Year TM Ore TM Waste Total TM SR
Au (Oz) Recovered
2017* 2,230,325 0.308 22,057.56 1,386,074 3,616,399 0.621 17,646.05
2018 2,900,000 0.295 27,536.29 1,161,693 4,061,693 0.401 22,029.03
2019 2,900,000 0.269 25,048.66 1,392,147 4,292,147 0.480 20,038.93
2020 2,898,945 0.261 24,285.88 794,597 3,693,542 0.274 19,428.71
TOTAL 10,929,270 0.283 98,928.40 4,734,511 15,663,781 0.444 79,142.72
(*) Since April to December
Source: Andean CG

18
2 Introduction
2.1 Scope of Work
The Andean Consulting Group SAC (Andean CG), was engaged by Minera IRL
S.A. (MIRLSA), subsidiary of Minera IRL Limited (MIRL) as an independent
consulting firm, to prepare this Technical Report for the Corihuarmi Gold Mine
Property (Corihuarmi Mine). It is to be published in the Canadian Security
Exchange and the Lima Stock Exchange.
The Corihuarmi Mine is an open pit gold mine located in the high Andes of central
Peru, approximately 160 km southeast of the city of Lima.
This report is prepared to accomplish the reporting requirements set forth in the
Canadian National Instrument 43-101 (NI 43-101).
2.2 Details of Inspection

The table 2-1 shows recent site visit personnel.
Table 2-1: Site Visit Personnel
Personnel Company Expertise Date(s) of Visit Details of Inspection
Reviewed geology, resource

Resource estimation methodology,
Andres
Geology and February 6-9, sampling and drilling practices,
Rivera AndeanCG
Project 2016 examined drill core, planning
Zeballos
Manager practices, mining methods and
process plant.
Source: Andean CG
2.3 Qualifications and Experiences

Andean CG is a Peruvian mining consulting firm specializing in the areas of the
mining and geology engineering, metallurgy, legal affairs and mining permits,
social affairs, and environmental affairs and stakeholder management.
The “qualified person” (as defined in NI 43-101) for the purpose of this report is
Andrés Rivera Zeballos, who is an employee of Andean CG.
Mr. Rivera is a Geologist Engineer - CIP N° 10986 with 45 years’ experience in

exploration and mining geology, he was charge of mine operations and processing
plant also he has knowledge of Merrill Crowe process. He is the Project Manager

19
of Andean CG and is the Project Manager for this Technical Report. Mr. Rivera is
a Chartered Professional in the discipline of geology and a Member since
September, 2010 of the Australian Institute of Mining and Metallurgy (AusIMM)
with code #305739. Mr. Rivera has the appropriate relevant qualifications,
experience and independence as defined in the Canadian National Instrument
43-101.
2.4 Independence
Andean CG, nor the authors of this report, do not and have not previously held
any material interest in MIRLSA or MIRL or related entities or interests. Andean
CG’s relationship with MIRLSA or MIRL is exclusively a professional association
between client and independent consultant. This report is prepared in exchange
for fees based on agreed commercial rates and the payment of these fees is in no
way contingent on the results of this report.
2.5 Principal Source of Information

The authors of this report have reviewed and verified all the material information
provided by MIRLSA and MIRL, and studies completed by other independent
consulting and engineering groups. A summary is included below:
 Estimate of Reserves as of March 31, 2017 - Carried out by MIRLSA

 Coffey Mining (April 2010) - National Instrument 43-101 Technical Report
 Coffey Mining (previously RSG Global Consulting Pty Ltd –April, 2007) -
Competent Person's Report.
 Kappes, Cassiday & Associates, 2006, " Corihuarmi Feasibility Study
1,000,000 tonnes per year Heap leaching project "Technical report
prepared for MIRLSA.
 Vector Perú S.A.C. 2006, " Bankable Feasibility Study Leach Pad, Waste
Rock Disposal and Mine Access Road Facilities Design” Technical report
prepared for Minera IRL S.A.
 Smee y Associates Consulting Ltd (February, 2009) - A Review of the
Minera IRL S.A Quality Control Protocol, Core and Blast Hole Sampling
Protocol, and Two Laboratories, Peru.

20
Andean CG conducted the collection of information and reasonable investigations
to establish the integrity and authenticity of the information provided and sent a
final draft of this report to the MIRL along with a written request to identify any
major errors or omissions prior to filing.
2.6 Effective Date

The effective date of this report is September 30th, 2017.
2.7 Abbreviations
A complete list of abbreviations used in this report is provided in Table 2.2 below.
Table 2-2: List of Abbreviations
Description Description
United States of
$ koz Thousands of ounces
America Dollars
Liters per hour per
µ Micros l/hr/m²
square meter
3D Three-dimensional M Million
Atomic absorption
AAS M Meters
spectrometer
Au Gold Ma Million years
Kriging Multiple
Bcm Bank cubic meters MIK
Indicator
CC Correlation coefficient Ml Milliliters
Cfm Cubic feet per minute Mm Millimeters
CIC Carbon in column MMI Mobile metal ion
Millions tonnes per

CIL Carbon-in-Leach Mtpa
annum
Cm Centimeters N (Y) Northing
Cumulative Sum of the
Cusum NaCN Sodium cyanide
deviations
National Association of
CV Coefficient of Variation NATA
Testing Authorities
DDH Diamond drill hole NPV Net present value
Size of diamond drill

DTM Digital terrain model NQ2
rod/bit/core

21
E (X) Easting ºC Degrees centigrade
Electronic distance
EDM OK Ordinary Kriging
measuring
EV Expected value Oz Troy ounce

80% passing 75
G Gram P80 -75µ
microns
g/m³ Grams per cubic meter PAL Pulverize and leach
g/t Grams per tonne Ppb Parts per billion
Half the absolute

HARD Ppm Parts per million
relative difference
High density poly Pounds per square

HDPE Psi
ethylene inch
Size of diamond drill
HQ2 PVC Poly vinyl chloride
rod/bit/core
Hr Hours QC Quality control
HRD Half relative difference Q-Q Quantile-quantile
Inductivity coupled
ICP-MS plasma mass RAB Rotary air blast
spectroscopy
Inverse Distance
ID RCD Reverse circulation
weighting
Inverse Distance
ID² RL (Z) Reduced level
Squared
Integrated pressure
IPS ROM Run of mine
stripping
Rock quality
IRR Internal rate of return RQD
designation
International Standards
ISO SD Standard deviation
Organization
Inchcape Testing Society General

ITS SGS
Services Surveillance
Kg Kilogram SMU Simulated mining unit
kg/t Kilograms per tonne T Tonne
Km Kilometers t/m³ Tonnes per cubic meter
kt Thousands of tonnes

22
3 Reliance on Others Experts
Andean CG has relied upon the legal and environmental opinion of MIRL’s
personnel where necessary. Andean CG accepts responsibility for all other
information disclosed in this Technical Report.
4 Property Description and Location

4.1 Project Location
The Corihuarmi Mine is located in the districts of Chongos Alto and Huantan, in
the province of Huancayo and Yauyos, in the department of Junín and Lima,
respectively, approximately 4,800 m.a.s.l., northwest of the Coyllorcocha and
Huichicocha lagoons, on the surface lands of peasant communities of Atcas and
Huantán.
The access to the Corihuarmi Mine from Lima is accomplished via the asphalted
central road to the city of Huancayo, where you take the compacted road and a
dirt road to the mine. The journey from Lima to Huancayo is approximately 6 to
7 hours and from Huancayo to the mine is 4 to 5 hours.
Another access road is the Lima-Cañete-Lunahuana asphalt road, taking the

compacted road and dirt road Lunahuana - Laraos - San Valentín – Corihuarmi
Mine. The journey from Lima to Lunahuana is 3 hours and from Lunahuana to
the mine is 8 hours.

23
Figure 4-1: Location of the Corihuarmi Mine
CORIHUARMI
GOLD PROJECT
CAPITAL
CORIHUARMI MINE

24
4.2 Mining Property Status
As shown in Figure 4.2, the Corihuarmi Property consists of 14 concessions
totaling 9,315.83ha. These concessions were taken 100% by MIRL, six of which
are mining concessions with an approximate land area of 3,418,65 hectares and
eight exploration concessions or petitions (stage of application for mining
concession,) for a total of 5,897.18ha.
Figure 4-2: State of Mining Property Corihuarmi
434000 436000 438000 440000 442000 444000

8616000
8616000
Canchiccocha
N
Huascacocha 4 800
50
8614000
8614000
45
aes
ar 45 50
Patocha m
Ay
Rio
TUPE 5
o
VERA I
ay
8612000
8612000
a nc
Hu
a
Yanacocha
TUPE 2 Ujujuy
DE
8610000
8610000
TAMBO NUEVO II
Pucahuasi
Huichiccocha
TUPE 3
JUNÍN
8608000
8608000
jsa
Coyllorcocha
Sa
00
48
rro
VERA III
Ce
8606000
8606000
475
0
8604000
8604000
CORIHUARMI MINE
48
Economic Administrative 47
50
00
Unit - Corihuarmi MINING CONCESSION MAP 49

00
47
00
434000 436000 438000 440000 442000 444000

25
The main block is an irregular rectangle of approximately 6km by 7km consisting
of six contiguous mining concessions totaling 3,418.65ha. As shown in Figure
4.2, fully enclosed within the main block is an exploration grant, Tambo Nuevo
11, maintained by a third party (Exploraciones Geologix Inc.), since the beginning
of 2004.
The eight exploration concessions (5,897.18ha), which constitute the other five
blocks, cover initial exploration objectives with minimal work completed on them.
The Corihuarmi Mine is located within the mining rights areas owned by Minera
IRL S.A., listed in Table 4-1.
Table 4-1: Mining Concessions
NAME Area REGION PROVINCE DISTRICT

(Ha)
ECONOMIC ADMINISTRATIVE UNIT (UEA) CORIHUARMI: ( Presidency Resolution N° 3473-2014-
INGEMMET/PCD/PM del 12.11.2014)
Assignment agreement for Mining Concessions signed with Minera Andina de Exploraciones S.A.A.
TUPE 2 600 LIMA YAUYOS HUANTÁN / TUPE
TUPE 3 600 JUNIN / LIMA HUANCAYO / CHONGOS ALTO /

YAUYOS HUANTAN / TUPE
TUPE 5 300 LIMA YAUYOS HUANTAN
VERA I 800 JUNIN / LIMA HUANCAYO / CHONGOS ALTO /

YAUYOS HUANTAN
VERA II 700 JUNIN HUANCAYO CHONGOS ALTO
VERA III 500 JUNIN / LIMA HUANCAYO / CHONGOS ALTO /

YAUYOS TUPE
MINING CONCESSION
TAMBO NUEVO 11 400 JUNIN HUANCAYO CHONGOS ALTO
CONCESSION OF BENEFIT
CORIHUARMI 127.5 JUNIN / LIMA HUANCAYO / CHONGOS ALTO /

YAUYOS HUANTAN
Source: Andean CG
4.3 Permits
4.3.1 Environmental Management Instruments
The Corihuarmi Mine began operations in 2008 once the 2007 Environmental
Impact Study was approved. It has Environmental Management Instruments in
place for its primary components (Pits, PADs, Dismantlers, BMI, Benefit Plant,
others).

26
Table 4-2: Approved Environmental Management Instruments
Nº Approval Document Date Approved Instrument / Main components

Environmental Impact Study of Corihuarmi
RD Nº 117-2007- exploitation and benefit project (Pit Diana, Pit Susan,
1 27/03/2007
MEM/AAM Circuit N°1 Benefit Plant, PAD 1, PAD 2, Dismount,
Others).
Environmental Impact Study "Final study of the
RD N° 090-2008- primary line of 22.9 kV S.E. Chumpe - Corihuarmi
2 21/04/2008
MEM/AAM Mining Unit and Corihuarmi output module 22.9 / 126
kV, 1 MVA of the S.E. Chumpe
RD Nº 006-2010- MEM-
3 07/01/2010 Mine Closure Plan of the Corihuarmi Mining Project.
AAM
RD Nº 172 -2010- Mining Liabilities Closure Plan for the Corihuarmi

4 19/05/2010
MEM/AAM Mining Project.
Environmental Impact Study of the project Expansion

RD Nº 010-2012- of production and capacity of the Corihuarmi mine
5 12/01/2012
MEM/AAM plant (Pit Scree Slope, PAD 3, Circuit Nº2 Benefit Plant,
Others).
RD Nº 191-2013-MEM- Update of the Mine Closing Plan of the Corihuarmi
6 12/06/2013
AAM Mining Unit
Technical Report for the Modification of Location of
Approved Platforms of the Corihuarmi Exploration
RD N° 354-2014-MEM- Project, presented by Minera IRL S.A. (Explorations
7 10/07/2014
AAM have been approved using R.D.251-2006-MEM-AAM,
R.D.207-2008-MEM-AAM, and R.D.066-2010-MEM-
AAM).
Second Modification to the EIA for the expansion of the
Phase 4 Leaching PAD and Pits in the Corihuarmi
RD Nº 617-2014-
8 23/12/2014 Mining Unit (Pit expansion Diana, Pit Cayhua, PAD 4B,
EM/DGAAM
Circuit N°3 Benefit Plant, BMI Expansion, Quarries,
Others).
Rectification of RD Nº 617-2014-EM / DGAAM

RD Nº 452-2015-MEM- specifying that its components may be included in the
9 24/11/2015
DGAAM next modification or update of the Mine-closure Plan
(Term until 2018).
Source: Andean CG

27
4.3.2 Authorizations and Permissions
In addition, the primary components (Open Pits, PADs, Waste Dump, BMI,
Beneficiation Plant, others) have their authorization of construction and
operation granted by the Mining Authority through the following resolutions:
Table 4-3: Authorization construction and operating licenses
Authorization Component Description EIA Base

R.D. Nº 954-2008- Area: 60 hectares R.D.Nº 117-2007-
MEM/DGM of Concession Benefit: Treatment: 3,000 tpd MEM/AAM of
06.06.2008 PAD Phase 1 Circuit Nº 1: 5 columns 27.03.2007 (Corihuarmi
ADR plant of diameter 2.1m y Exploitation and Benefit
height 2.7 m. Project)
R.D. Nº 937-2008- Pit Diana Approve Mined Plan
MEM/DGM of Pit Susan. (3,000 tpd) and Start of
21.05.2008 Waste Dump Exploitation.
Cap. Dump: 3.6 MMt
R.D. Nº 090-2009- Concession Benefit: Area: 127.5 Ha.
MEM/DGM of PAD Phase 2 (2A)
04.05.2009 Crushing system
R.D. Nº 858-2009- Concession Benefit: Treatment: 4,110 tpd Until 50% (Art.20, D.S.
MEM-DGM/V of Plant ADR Circuit Nº 1 Nº 016-93-EM; D.S. Nº
29.10.2009 029-99-EM). EIA fixed on
2,740 tpd.
Resolution Nº 118- Waste Dump Capacity of the waste
2010-MEM-DGM/V (Modification) dump: 2.125 MMt
del 15.03.2010
Resolution Nº 047- Concession Benefit: Authorization de
2011-MEM-DGM/V PAD Phase 2 (2B) Functioning
del 07.02.2011
Resolution Nº 428- Concession Benefit: Treatment: 6,000 tpd R.D. No. 010-2012-MEM
2012-MEM-DGM/V PAD Phase 3 Circuit Nº 1. / AAM, 12.01.2012, EIA
del 28.12.2012 Plant ADR (Circuit Nº Circuit Nº 2: 5 columns "Expansion of
2) de diameter 2.1m y production and installed
height 3 m. capacity of the
R.D. Nº 181-2012- Pit Scree Slope Modification of the Mine Corihuarmi mine benefit
MEM/DGM of Plan (6,000 tpd). plant".
14.09.2012 North Dump (Capacity:
1.25 Mm3).
5 Accessibility, Climate, Local Resources, Infrastructures and

Physiography
5.1 Project Access
Access to the project area from Lima is accomplished via two routes:
 Lima - Huancayo - Vista Alegre - Corihuarmi Mine, covering approximately

445 km.
 Lima - Cañete - Lunahuana - Yauyos - Llapay - Valentine - Project
Corihuarmi Mine, covering approximately 370 km.

28
Table 5-1: Access to the project area
Lima – Huancayo – Vista Alegre – Corihuarmi Mine
ROUTE VIA Distance Km. Hours

(Hr)
Lima – Huancayo Asphalt road 330 6.0
Huancayo – Vista Alegre Compacted Road 45 1.5
Vista Alegre – Corihuarmi Mine Dirt Road 70 2.5
TOTAL 445 10
Lima – Cañete – Yauyos – San Valentín – Proyecto Corihuarmi

Lima – Cañete – Lunahuana Asphalt road 145 2.5
Lunahuana – Yauyos – Llapay Compacted Road 155 4.0

Llapay- San Valentín – Corihuarmi Mine Dirt Road 70 3.5
TOTAL 370 10
5.2 Physiography and Climate

Corihuarmi Mine is located at elevations between 4,500m and 5,050 meters
above sea level and the main Andean divide. In spite of the elevation, the
topography comprises a series of hills and ridges that rise approximately 500 m
above an undulating alpine plateau.
The Property experiences a climatic regime of high mountain dry tundra. The
precipitation is markedly seasonal and the total annual precipitation is 730 mm.
The vegetation is composed only of alpine pastures across the plateau.
Agricultural activities are limited to extensive grazing of summer cattle, mainly
sheep, cattle and camelids (alpaca and llama).
5.3 Local infrastructure and services

The mine has a camp called Campamento Nuevo to accommodate approximately
115 employees of MIRLSA, built to the east of the plant facilities . Existing
facilities include offices, warehouse, dining rooms and a recreation room, among
others.
In addition, there is a camp called Campamento Antiguo to accommodate

approximately 260 employees of MIRLSA, and approximately 90 contractors.

29
Existing facilities include offices, a medical center and a recreation room, among
others.
The main infrastructure related to the mine include the waste landfill, transport
roads, the mining contractors workshop and related infrastructure, fuel storage
facility and explosives.
6 History
6.1 History of Exploration
Between 1996 and 1997, Minera Andina de Exploraciones (Minandex) identified
the Corihuarmi Mine based on the color anomalies of the LandSat images that
define the extensive alteration system. Minandex completed the geological
mapping, chip-channel sampling and the limited drilling of the diamond core (3
holes, 775m), identifying the areas of Susan and Diana.
The Corihuarmi Mine was carried out by Cardero Resource Corporation (Cardero)
between 1998 and 2000, with work being done on its own and under joint venture
agreements with Barrick Gold Corporation (Barrick) and Newmont Mining
Corporation (Newmont). The exploration included geological mapping, a
disturbance study, portable infrared analysis (PIMA), a controlled source audio-
ionospheric survey (CSAMT) that was reinterpreted by Newmont and drilling to
test CSAMT anomalies (9 holes: 1,971.15m). Only one hole was drilled near the
northern end of the Diana area and no drilling was completed in the Susan area.
The companies concluded that the environment was not conducive to the
development of large areas of gold epithermal mineralization, choosing to return
ownership to Minandex by the end of 2000.
6.2 Mining History

In that area only artisanal miners worked until MIRL acquired the rights and
concessions of Corihuarmi, and went on to exploit the Mineral Resource. At first
only Susan and Diana were identified as exploitable deposits, but the following
deposits are currently in operation: Expansion Diana, Cayhua, Cayhua North,
Scree Slope, Laura, Susan and Scree Slope Expansion.

30
7 Geological Setting and Mineralization
7.1 Regional Setting
Corihuarmi Mine is located within the Andean Range, between the Peru-Chile
ocean trench to the west and the Brazilian Craton to the east. The Andes
Mountains formed as a result of the convergence between the Nazca (Pacific
Basin) oceanic plate and the South American continent. The denser base of the
Nazca plate was subducted beneath the South American continent along the
Peru-Chile trench, resulting in crustal melting and magmatic (volcanic) activity,
while the lighter marine sediments of the upper plate of Nazca were accreted to
the continental land mass, resulting in collision and compression.
The Andean range consists of two parallel chains, with the youngest Western
Mountain range corresponding to a Cenozoic magmatic arc, while the Eastern
Mountain range represents a zone of progressive ascent from the Permian. The
intermediate zone is occupied by the Altiplano, a relatively low relief plateau
where inter-mountainous basins developed during the Cenozoic period. The
Western Cordillera and the Altiplano host most of the precious metal and
economically significant base metal deposits of Peru, occurring in a series of
metallogenic distinct belts or domains.

31
Figure 7-1: Regional Geology
Corihuarmi is located in the extreme north of the Au-Ag epithermal

metallogenetic province of of Peru, associated with Middle-Upper Tertiary
volcanics of the and with intrusives of the western mountain range. These are
separated from the deformed Mesozoic sediments of the Altiplano immediately
east of the Corihuarmi area by an important main thrust to the northeast.
7.2 Project Geology

The Tupe quadrangle (26-L) was used to summarize the project geology, which is
part of the National Geological Chart made by INGEMMET at regional level in
1970 and updated in 2002. The Lower Cretaceous is represented by calcareous
limestone rocks (limestone and calcareous sandstones). The Paleogene-Neogene

32
(Cenozoic) is represented by volcanic strata of of andesitic-dacitic composition,
while the Quaternary, is represented by glacial, alluvial-colluvial and bofedal
deposits. The study area is located within the Andean Range that in the Mesozoic
was a submarine basin that had contributions of both continental and marine
sediments.
In the Lower Cretaceous, the basin was affected by processes of marine

transgression that form sedimentary rocks such as limestones and calcareous
sandstones. These rocks appear 4.6 km to the northeast of the current waste
dump and correspond to the Chulec Formation (ki-chu).
Subsequently, overlying the geological unit mentioned above, the Jumasha

Formation (Ki-ju), is composed of limestones and is also located 4.5 km to the
northeast of the mine. At the end of the Cretaceous, the basin passed through
deformation processes, generated by a compressional tectonic activity, giving rise
to epirogenetic processes and therefore, to the regression of the sea. At his time
gentle folding occurred in the basin.
Following this, during the Upper Cretaceous, a severe erosive process gave rise
to the formation and sedimentation of the Casapalca Formation (KsP-ca), which
is located 1.5 km northeast of the mine.
In the Early Cenozoic, a tectonic phase folded to the Mesozoic sequence, forming
in a northwest-southeast hinges. Also, in this period magmatic processes took
place, which, through faults and fissures, expelled lavas that led to volcaniclastic
sediments.
In the Miocene, continuous effusive activity led to volcano-sedimentary strata

consisting of mainly gray andesitic flows with tuffs and sandstones that form part
of the Sacsaquero Formation. which outcrops 650 m to the west and 1.5 km to
the east of the BMI.
Unconformably overlying the Sacsaquero Formation is the Castrovirreyna

Formation of the Middle Miocene, which is formed by red sandstones, limestone

33
lenses, tuff and dark gray andesitic lavas. The rocks belonging to this formation
are affected by a marked folding, 1 km south of the study area.
In the Mid Miocene, the Caudalosa Formation (Nm-ca) is composed of andesitic

flows intercalated with breccias and andesite breccias. It unconformably overlies
the Castrovirreyna Formation and is moderately folded. It should be noted that
this unit constitutes the rocky substrate of the mine.
Straigraphically above the Caudolosa Formation are rhyolitic sub-volcanic rocks

associated with the Tertiary Coastal Batholith intrusion. These rocks outcrop 4.6
km south of the mine. Then, in the Pliocene, renewed epirogenetic activity gave
rise to the current formation of the Andes Mountain Range.
Finally, in the Quaternary, deposits of glacier origin are deposited (Q-g2),

consisting of blocks and consolidated angular gravels. It is noted that these
materials are in the vicinity of the mine and also fluvio glacial deposits (Qpl-fg),
consisting of gravel and sands.
The Corihuarmi Mine is located at the north of the silver-gold epithermal belt of
southern Peru. In Corihuarmi Mine the following mineralized zones are defined:
Diana Expansion, Cayhua, North Cayhua, Scree Slope, Laura, Susan and Scree
Slope Extension (New Tambo). These represent a high-sulphidation epithermal
system that mineralized Tertiary volcanic and sedimentary rocks. Dacites and
porphyritic latite intruded system the Late Tertiary.

34
Figure 7-2: Local Geology (Lithography)
ALTERATION
Unaltered
Clorization
YANACOCHA LAGOON
Argillic
Argillic-Py
Silica-Clay
Silica-Clay-Py
Silica-Alunite
Silica-Alunite-Py
Granular Sili-Al
Vuggy-Silica
Vuggy-Silica-Py
Silica Granular
Massive Silica
LAURA
MassiveSilica-Py
Sili. Structure
ELY NORTH
Tectonic Breccia
Lagunes
SYMBOLOGY
Production
CAYHUA Exporation
NORTH Pros. Areas
L. structural
Mayor faults
Minor faults
DIANA EXPANSION
DIANA
CAYHUA
SUSAN
SCREE TAMBO
SLOPE NUEVO
SONIA
COYLLOCOCHA
LAGOON
In Corihuarmi, the geological and physical evidence suggests a volcanic caldera

environment, with intermediate to acidic volcanic rocks, vertical cylindrical
breccias, pyroclasts and tuffs, as well as rhyolitic and dacitic domes. Typical
epithermal mineralization has a paragenesis of porous silica-alunite
-native sulfide. The dominant topographic features are higher altitude siliceous
outcrops aligned in a NW-SE direction. The dominant topographic features
present an NE-SE alignment. It is also known that the system of hydrothermal
fluids responsible for gold mineralization was provided by the coincident
intersection of regional fault trends NW, NE and E-W.

35
7.3 Mineralization
The mineralization identified to date within the Corihuarmi Mine comprises a
system of high sulphidation epithermal precious metals formed at a relatively
shallow depth. Gold and silver mineralization is essentially confined to remnants
of silicification and breccias that predominate along the northeastern margin of
the volcanic complex (Figure 7.3). The horizontal metallogenic zonation provides
evidence that this siliceous layer was once continuous, effectively plugging the
hydrothermal system.
Figure 7-3: Main geological block
The most significant mineralization is associated with the areas of Diana

Expansion, Cayhua, Cayhua North, Scree Slope, Laura, Susan and Scree Slope
Expansion (Figure 7.4), which comprise remnant mineralized silica bluffs. The
siliceous layer has a thickness of 10m to 75m, and an average of approximately
45m.

36
Figure 7-4: Mineralization Areas in Corihuarmi Mine
The drilling has defined zones of mineralization, which we present in; Figure 7.5,
Figure 7.6 and Figure 7.7, which show the drilling section intercepting the
mineralization.
The mineralized material is composed almost exclusively of amorphous vuggy

silica with the dacite generally modified beyond textural or mineralogical
recognition. Subordinate interstitial alunite increases in abundance toward the
base of the mineralized zones, while zones of annealed breccias and quartz veins
attest to multiple episodes of hydrothermal activity. The massive siliceous
material graduates laterally downwards in a zone of intense alteration silica-
alunite.

37
Figure 7-5: Susan and Diana zone section
ALTERATION: Grades Au (g/t): SYMBOLS:
Top soil Silica - Clay No sample 0.20 – 0.45 Fault
Morraine Silica – Clay - Py 0.00 – 0.10 0.45 – 1.00

Hole RC & DDH
Vuggy Silica Silica - Alunite 0.10 – 0.15 1.00 – 2.00
Massive Silica Silica – Alunite - Py 0.15 – 0.20 > 2.00 Pit Design
Top soil No sample Fault

Silica - Clay 0.20 – 0.45
Morraine Silica – Clay - Py 0.00 – 0.10 0.45 – 1.00
Hole RC & DDH
Vuggy Silica Silica - Alunite 0.10 – 0.15 1.00 – 2.00
Massive Silica Silica – Alunite - Py 0.15 – 0.20 > 2.00 Pit Design

38
Figure 7-6: Cayhua and Cayhua North zone section

Silica - Clay 0.20 –
Morraine Silica – Clay - Py 0.00 – 0.10 0.45
Hole RC & DDH
Vuggy Silica Silica - Alunite 0.10 – 0.15 0.45 –
Massive Silica – Alunite - Py 0.15 – 0.20 1.00 Pit Design
1.00 –
ALTERATION: SYMBOLS:
Grades Au (g/t):

Hole RC & DDH
Silica 1.00 –

39
Figure 7-7: Laura and Scree Slope extension zone section

Fault
Hole
Hole RC
RC &
& DDH
DDH
Massive Silica – Alunite - Py 0.15 – 0.20 1.00 Pit
Pit Design
Design
1.00 –

Hole RC & DDH
1.00 –

40
The mapping has identified a halo of alteration in zones that is generally follows
the structure of the interpreted caldera. The mineralogical zoning is classified
vertically downward and laterally away from the identified zones of mineralized
siliceous material representing the remnants of the hydrothermal system.
Immediately below and laterally outwards from the outcrops of vuggy silica is an
extensive zone of silica-alunite alteration, which is classified in a zone of silica-
clay, essentially defining the structure of the caldera. This is surrounded by the
ubiquitous clayey alteration that extends along the remaining portions of the
entire volcanic center.
A distinctive metallogenic zonation also seems to define elements of the caldera

structure, as evident in a compilation of the various geochemical data sets. The
caldera appears to be defined by an anomalous outer halo of zinc, together with
an inner halo of coincident barium, gold, arsenic, antimony, bismuth, and
mercury. The stronger copper and molybdenum identified by drilling along the
southern margin of mineralized bodies are more likely to represent the root zone
or feeder structures that transgress the dacite dome. An isolated zone of propilític
alteration is mapped in the north extremity of the structure. It is not clear,
however, whether this is related to the same system or a conserved remnant of
an earlier regional disturbance event that has been overprinted by the main
mineralization system.

41
Figure 7-8: Main alteration block

42
Figure 7-9: Main block of metallogenic zonation
YANACOCHA LAKE
Cu
Ag
Au
Lake
COYLLORCOCHA LAKE
8 Deposit Types
The Au oxide mineralization of Diana, Cayhua, Cayhua North, Scree Slope, Laura,
Susan and Scree Slope Expansion is associated with an epithermal style of
mineralization. The deposits of epithermal gold are formed in hydrothermal
systems related to volcanic activity. These systems, while they are active,
discharge to the surface as hot springs or fumaroles.
Epithermal gold deposits occur largely in volcanic-plutonic arcs associated with

subduction zones, with ages similar to those of the volcanism. The deposits are
formed at shallow depths, <1km, and are mainly hosted by volcanic rocks.

43
There are two epithermal end members of, high sulphidation (HS) and low
sulphidation (LS) deposits, which are formed from fluids of distinct chemical
composition in a contrasting volcanic environment. The deposits of Diana and
Susan are of the style HS.
Examples of deposits of epithermal gold of economic importance are Yanacocha,

Pierina and Lagunas Norte in Peru, Pueblo Viejo in the Dominican Republic,
Pascua-Lama, El Indio and El Peñon in Chile, Veladero and Cerro Vanguardia in
Argentina, Porgera and Ladolam in Papua New Guinea, Bagio and Lepanto in the
Philippines, McLaughlin, Round Mountain, Summitville and Goldfields in the US,
and Emperor in Fiji.
9 Exploration
The Corihuarmi Mine has a disseminated gold epithermal deposit that is located
in a Neogene Volcanic Belt (Tertiary Volcanic-Belt NW-SE) in the Western Andean
Range of Central Peru, Department of Junín and that appears in the Structural
Corridor of the Chonta Fault, where the epithermal deposits of Bethania and
Picomachay (see figure 7.1).
The geology and geochemistry in Corihuarmi Mine shows a great similarity to

other gold deposits known as Yanacocha, Pierina, Sipán, Aruntani and Huilacollo
associated with the Andean Neogene volcanism. These volcanic rocks altered the
volcanic-sedimentary basement of agglomerates, re-worked tufts, deposited and
interspersed with andesite flows and strata of limestone-shale from the
Casapalca-Sacsaquero Formations (unaltered) appearing on the flanks of the
"Epithermal System -HS ", which appears to form a large structure, partly eroded,
located in Corihuarmi.
The exploration at the beginning included geological mapping, a disturbance

study, portable infrared analysis (PIMA), a controlled source audio-ionospheric
survey (CSAMT) that was reinterpreted by Newmont and drilling to test CSAMT
anomalies (9 holes: 1,971.15m). Bedrock sampling, particularly chip channel
sampling in conjunction with diamond core (DC) and Reverse Circulation (RC),
drilling had been the dominant explorations tools of MIRL for defining Mineral

44
Resources at the Diana and Susan zones. In addition, they have utilized
geological mapping and geochemistry sampling, along with CSAMT geophysical
surveys.
The recently exploration studies and interpretations to date within the Project
have been largely planned, executed and supervised by MIRL staff, complemented
by consultants and contractors for more specialized or technical functions. The
data is considered to be of good quality.
9.1 Relevant exploration works

Drillings in the pits has been ongoing and generative methods have been
successful in delineating a number of targets (described above) for future drilling
or exploration development. This work has included detailed geological mapping
of the areas.
9.2 Sampling Methods and Sample Quality

Sampling of exploration targets generally features rock chip or hand samples
taken by geologists from outcrops using rock hammers and chisels. These
samples are point samples and should be considered indicative of mineralization
rather than representative of any volume.
In cases where channel or trench samples are collected, these are done so using
pickaxes, chisels, hammers, and other hand tools, and are likely more
representative of the mineralization.
Regardless, the results are used as guides for future drilling programs, rather
than resource estimation.
9.3 Significant Results and Interpretation

Significant results from the exploration efforts have defined a series of areas that
may be prospective to continue drilling or sampling, including the following:
Diana expansion, Cayhua, North Cayhua, Scree Slope, Laura, Susan.

45
10 Drilling
10.1 Type and Extent
The Exploration-Mine Area of the Corihuarmi Mining Unit executed during 2016
a new DDH and RCD Drilling Program comprised between the Cayhua, Cayhua
North, Cayhua East, Diana, Laura, Susan and Tambo Nuevo areas; this was
executed in order to increase the Mineral Resource and Mineral Reserve of the
Corihuarmi mine to extend its life.
The executed drilling program consisted of 56 drills type DDH (5,074.30m) and
29 holes type RCD (2,199.00m), which make a total of 85 drills with 7,273.30m
perforated. This is detailed in table 10-1
Table 10-1: Corihuarmi Exploration and Development Drilling
PERFORATION DDH & RCD 2016

Zone RCD DDH DDH&RCD
N ° Drills Long. (m) N ° Drills Long. (m) N ° Drills Long. (m)
Diana expansion 5 424.2 5 424.2
Cayhua expansion 5 419.8 5 419.8
North Cayhua 1 119.5 24 2,298.70 25 2,298.70
Laura 6 608.1 6 608.1
Susan 19 1.847.50 16 1,323.50 35 3,171.00
Scree Slope expansion 9 232 9 232
TOTAL 29 2199 56 5074.3 85 7273.3
In addition to the drilling at Corihuarmi, extensive channel sampling of the

mineralized bodies is completed for grade control and development purposes.
These data points are utilized in mineral resource estimation as well. The general
distribution of drilling and channel samples is shown in Figure 10.1-1 and Figure
10.1-2, respectively. Besides diamond and RC drilling at Corihuarmi, extensive
blasthole sampling of the mineralized bodies is completed for grade control and
development purposes. These data points are utilized in mineral resource
estimation as well. The general distribution of diamond and RC drillholes is
shown in Figure 10-1. The blasthole sample location are shown in Figure 9-2.

46
Figure 10-1: Location of drill holes by area
Cayhua
North
Expansion
Diana
Expansion
Scree Slope
Figure 10-2: : Extent of Blasthole Sampling
10.2 Procedures
10.2.1 Drilling
Most diamond drills were drilled by Ingetrol and Redrilsa with HQ diameter.
Based on the inspection of various core trays available on the site and the review
of available reports, Andean CG believes that diamond drilling has been carried
out in accordance with industry standard practices.
Reverse Circulation Drilling Procedures
Sample recoveries were not recorded by MIRL, although they were reported to be
high. Andean CG was unable to validate the recoveries of the RCD drilling.
Blasthole Procedures
The drilling of blast holes is used for rock blasting and also for the control of
grades, the drills are all vertical with about 5 meters of depth and are rotatory
compressed air which results in the contamination of the wall whenever the drill
is moved in the hole.
Drilling Orientation
The DDH and RCD drills were generally drilled to the northeast and southwest
between -37 to -90 degrees of inclination; according to the geological
interpretation of the mineralized bodies at the discretion of the exploration
geologist. The drillings were directed perpendicular to the mineralized bodies to
intercept in their true thickness as closely as possible The drilling developed at a
nominal spacing of 20 to 40 m.
10.2.2 Blasthole Sampling

Samples were taken with a small hole drill that is equipped with a suction device
on the top to remove the finer particles from the cuttings as they are coming out
of the blast holes. The cuttings are sent to a cyclone that pours the larger
fragments in a bucket while the fine particles are sent through a pipe that is
discharged into the back of the drill. That is, the sample is divided into three
fractions according to particle size.
This division of the sample according to the particle size may bias the grade and
therefore compromise the validity of the Mineral Resource estimation.
Andean CG recommends that in future the blast holes should produce a single
heap of sample at the drill head. The normal method of collecting samples of blast
holes is to place a skirt around the head to prevent cuttings from flying
everywhere and to protect cuttings from wind and water loss. The pie-shaped
division is used to collect a representative sample of the cuts. The cake samplers
are inserted under the skirt before drilling begins and are withdrawn when the
proper depth of the drill is reached. The sampler can be removed before overbore
is done to alleviate the dilution potential of the overhead cuts.
10.3 Interpretation and Relevant Results

Drilling and sampling results are interpreted by Corihuarmi site geologists, and
reviewed in cross sections and plan maps. The relevant results are those featuring
significant intervals of geologic or economic interest, which are followed up on by
continued drilling or exploration development.

49
Andean CG has not investigated the impact of the potential grade bias imparted
by using blasthole samples in the Mineral Resource estimation.
11 Sample Preparation, Analyses and Security

Quality assurance and quality control - QA / QC followed protocols and working
procedures on the different fronts, from obtaining the cores and detritus in the
DDH and RCD perforations, until the sampling and the sending of these samples
to the 2 chemical laboratories. It should be noted that the control in the process
was continuous and was determined based on the results of the laboratories and
the statistical analysis QA / QC of these, in which parameters of accuracy,
precision and contamination were evaluated. The details are shown in the
different chapters of this report.
Finally, the purpose of this report is to ensure the validity of the chemical analysis
results of the Certimin External Laboratory, which were included in the general
drilling database that was used to make the Mineral Resources and Reserves
Estimate prepared at 31 March 2017.
11.1 Diamond Core Sampling

HQ and NQ diameter of the diamond drill cores were sampled at lengths of an
average of 2m. The samples were numbered and collected in individual plastic
bags with sample labels inserted inside.
The collection and sampling of the cores have been conventional and appropriate.
The diamond core indicator is not oriented towards structural measurements.
11.2 Reverse Circulation Sampling

RCD samples were collected at 5 m intervals and quartered in rifle splitters. The
subsamples weighed approximately 1 kg and were collected in cloth bags.
Andean CG considers that 5 m composites are too large to be accurately and

representatively divided into sub samples of 1 kg. Mineralization shows moderate
homogeneity and Andean CG recommends that shorter sample lengths be used
in the future (starting with 1m and potentially testing intervals of 2m).

50
11.3 Surface Trench Sampling
A number of resource estimation analyzes were carried out to establish whether
the trench and calcareous samples are materially different from those obtained
from drill holes. There was no identification of conclusive and consistent bias
neither between the average trench rates and the diamond drilling, nor between
sample volume nor orientation. Based on this analysis, Andean CG did not
identify any reason for trench data to be excluded from the Mineral Resource
estimate.
11.4 Logging
The diamond core was recorded in detail for geological, structural and
geotechnical information, including rock quality designation (RQD) and core
recovery. The whole core was routinely photographed. Some selected geological
records were reviewed by Andean CG and compared to actual drill core, which
did not show significant discrepancies or inconsistencies.
The diamond logging and the register of RCD drills have been conventional and
appropriate.
11.5 Sample Security

All diamond drill cores, sample duplicates and their respective photographs are
stored in the Minera IRL warehouse in Lima.
11.6 Corihuarmi Mine Assay Laboratory

The Mine Laboratory was commissioned in 2007 and began the analysis of all
sampled drills for control grades purposes. (CERTIMIN continued to analyze
resource drilling, exploratory drilling and blast hole samples).
The CERTIMIN laboratory has the follwoing methodology:
- Sample of 500 g pulverized to 90% passing # 200
- Sample of 50 g digested by water regia then analyzed by 50 g fire test with an

AAS finish.
In addition, analyzing of the drilling samples were performed in the CERTIMIN

laboratories where a duplicate test is performed to minimize analysis errors.

51
11.6.1 Adequacy Procedure
Andean CG considers that the preparation of the sample is conventional and no
problems are identified.
11.7 Comments on Assaying

The Exploration-Mine Area of the Corihuarmi Mining Unit executed during 2016
a new DDH and RCD Drilling Program comprised between the Cayhua, Cayhua
North, Cayhua East, Diana, Laura and Susan areas; this in order to increase the
resources and mineral reserves of the Corihuarmi mine to extend its useful life.
The executed drilling program consisted of 56 drills type DDH (5,074.30m.) And
29 holes type RCD (2,199.00m.), Which make a total of 85 drills with 7,273.30m.
perforated.
Quality assurance and quality control - QA / QC followed protocols and working

procedures on the different fronts, from obtaining the cores and detritus in the
DDH and RCD perforations, until the sampling and the sending of these samples
to the 2 chemical laboratories. It should be noted that the control in the process
was continuous and was determined based on the results of the laboratories and
the statistical analysis QA / QC of these, in which parameters of accuracy,
precision and contamination were evaluated.
For precision control, a total of 130 duplicates of DDH drill cores samples and 32
duplicates of RCD drill debris samples were sent to the Certimin Laboratory; it
should be noted that 1 duplicate was sent for each batch of 40 samples on
average.
The results of the Certimin Laboratory corresponding to samples of DDH drilling

cores showed an Average Relative Error of 10.4% and a determination coefficient
of 99.1%.
Figure 11-1, Time Series Graph and Duplicate Scatter Chart (DDH Drilling) -
Certimin Lab.

52
Figure 11-1: Assays Comparison Original vs Duplicate
12 Data Verification
12.1 Procedures
With the database of the feasibility study of the Corihuarmi mine plan, which was
developed by multidisciplinary personal (metallurgical engineer, mine engineer
and geological engineer) and headed by Andres Rivera who is the QP, and the
corresponding reserves and resources studies dated March 31, 2017, Andres
Rivera verified the data as well as the estimation procedures that were done for
the respective studies, such as drilling and boring.
Limitations, Andean CG did not carry out independent verification samples.
12.2 Opinion on Data Adequacy

The Andean CG reviewed the results of the standards. In general, the returned
laboratory results show acceptable precision with some obvious isolations that
could be attributed to the sample mixtures. Therefore, greater care is
recommended when the samples are collected.
For a data collection, control samples, including duplicates, were performed for
Diamantine perforations and reverse circulation.

53
13 Mineral Processing and Metallurgical Testing
The metallurgical section of this report has been compiled by Andean CG from
information provided by MIRL in the form of spreadsheets and reports from the
Corihuarmi project site. Andres Rivera has reviewed and verified this information
and accepts responsibility for the technical information disclosed herein.
13.1 Process Description and Flowchart

The Project is a heap leach pad operation utilizing a multiple-lift, single-use leach
pad. Prior to placing the ore onto the leach pad the ore is primary crushed.
Processing of ore began in January 2008 when irrigation of the heaps was started.
Figure13.1 provides a flowchart of the leach process. The following describes the
leach operation in more detail.

54
Figure 13-1: Flowchart of the leaching process
13.1.1 Plant Production
Mineral to Leach Pad
Initially ore placement on the leach pad was slow due to commissioning issues
such as having a tight mining area and oversize in the ore to feed to the crusher.
After April 2009, the placement rate has exceeded the budget every month and
hence the yearly budget. In the last month of 2008, the placement rate slowed
again due to cessation of mining as the budgeted tonnes had been exceeded. The
following figure shows the amount of ore put into pad from 2008 until March 31,
2017.
Figure 13-2: Ore placed on pad 2008-2017
Ore placed on pad

3,500,000
3,000,000
2,500,000
2,000,000
TM
1,500,000
1,000,000
500,000
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 *2017
Ore TM 1,082,5 1,216,8 1,455,5 2,000,7 2,064,3 2,375,6 2,660,0 2,965,5 3,040,3 677,600
Gold in ore
It can be seen that the gold contained in the ore placed in the pad has been
calculated based on the conversion of troy ounces. In figure 13.3 the ounces that
are shown in the pad indicated with their respective ore grades for years 2008 to
2015. The following figure shows the number of ounces put into the pad from
2008 until March 31, 2017
Figure 13-3: Ounces placed on pad 2008-2017
Ounces placed on pad

80,000.00
70,000.00
60,000.00
50,000.00
Oz (Au)
40,000.00
30,000.00
20,000.00
10,000.00
0.00
2008 2009 2010 2011 2012 2013 2014 2015 2016 *2017
Oz (Au) 68,970. 44,358. 40,634. 44,215. 33,028. 34,173. 27,309. 31,291. 31,161. 8,576.5
Au
1.982 1.134 0.868 0.687 0.498 0.447 0.319 0.328 0.319 0.394
(gr/tn)
Recovery
Figure 13.4 shows the cumulative gold recovery since inception.
Figure 13-4: Cumulative Gold Recovery

57
Figure 13.4 shows that the recovery of gold has remained at an expected level
without any significant variation. It is worth mentioning that the recovery was
increasing progressively in the first years of the project, but has since plateaued
in the last years. The expected recoveries were estimated by Kappes-Cassidy
(KCA) during the feasibility study (FS). Testing was then adapted in the same
mining operation, as shown in Table 13-1,to show the expected recoveries of
some deposits from the 2010 feasibility study.
Table 13-1: Recovery estimates
Feasibility Study Recovery

Estimates
Average Expected
Field Recovery
Pit Recovery Range
Expansion
Diana
72 65-80
Cayhua 83 75-84
Cayhua
Intermedia
74 71-84
Cayhua
North
76 71-84
The lowest recovery has been recognized by site staff and the column test was
initiated to gain a better understanding of the required leaching conditions. This
test was carried out on the ore of Diana and Cayhua. The test was carried out
using columns of 3.2 m high. Three trials were conducted with different
concentrations of cyanide, namely 200 ppm, 300 ppm and 400 ppm. The
distribution of lime and cyanide consumption for the gold extraction rates are
shown in Table 13-2, where only representative data from February 2017 are
observed for samples extracted from some pits.

58
Table 13-2: Ratios and use of lime and cyanide and the recuperation percent
PIT Expansion Diana Cayhua Intermediate

Grade Cal NaCN %Rec Grade Cal NaCN %Rec
0.268 0.543 0.028 83.9 0.198 0.663 0.035 86.9
0.890 0.449 0.064 81.1
AVERAGE 0.579 0.496 0.046 82.531 0.198 0.663 0.035 86.891
PIT Cayhua Cayhua North
0.739 0.648 0.082 93.6 0.439 0.515 0.072 87.3
0.307 0.691 0.042 87.0
1.156 0.632 0.086 94.8
AVERAGE 0.734 0.657 0.070 91.801 0.439 0.515 0.072 87.254
14 Mineral Resource Estimates

Andean CG has reviewed the Mineral Resource for Corihuarmi Mine deposits;
Expansion Diana, Cayhua, Cayhua North, Scree Slope, Laura, Susan and Scree
Slope Expansion which was generated by qualified personnel.
Andean CG prepared the Mineral Resource report as of March 31, 2017 (effective
date). The full summary of the Mineral Resource (Measured and Indicated) at the
effective date is presented in Table 14-1. Measured and Indicated Mineral
Resources are reported separately in sections 1 and 14.2.
Table 14-1: Summary of Mineral Resource (Measured and Indicated)
Cut Off Au Grade

Zone Ton Oz Gold
g/t (g/t)
SUSAN 0.09 4,421,747 0.22 30,792
CAYHUA 0.09 4,758,661 0.20 31,234
CAYHUA NORTE 0.09 2,653,779 0.34 28,860
EXPANSION DIANA 0.09 3,347,347 0.25 26,722
LAURA 0.09 4,427,371 0.23 32,161
SCREE SLOPE 0.09 1,565,024 0.30 15,147
TOTAL 0.09 22,762,405 0.24 179,027

59
14.1.1 Validation of Database
Corihuarmi Mine unit resource estimates are based on available information from
exploratory drilling provided to Andean CG, which was reviewed and validated by
Andean CG before beginning the Mineral Resource estimation study.
The sample information includes diamond drilling, RCD drilling and blast hole
drilling. The Mineral Resource estimate was based on a historical total of 196
RCD drills, 274 diamond drills and 176 blast holes, of which only 48 RCD drills,
169 diamond drills and 119 blast holes were drilled in the period 2010-2017.
For the validation of the database, the following aspects were taken into account:
 Drill information studies and analysis.

 Consistency of depths between different data.
 Missing Intervals and Overlapping Intervals.
The information was compiled and structured into excel tables and then loaded
into specialized MineSight Software.
Drillhole information was composited to 5 meters, with a residual interval of +/-

1.5 m, having a composite range of 3.5m to 6.5m and a total of 95,008 composites
created.
Figure 14-1 shows the density of some zones in the Corihuarmi Mine.

60
Figure 14-1: Density of Zone Drilling
North Cayhua
Diana
expansion
Scree Slope
expansion
14.1.2 Geological Interpretation

The geological information compiled from the drilling data defines two key styles
of alteration:
Siliceous alteration (SIL) which effectively contains all economic gold

mineralization (Fig. 14.2 yellow and pink color)
Advanced argillic alteration (AA) containing broad low grade gold mineralization
(Fig. 14-2 orange color)

61
Figure 14-2: Perspective view of alterations
North
Cayhua
Diana
expansion
Scree
Slope
expansion
14.1.3 Interpretation of Mineralization

The mineralized domains are interpreted and modeled on the basis of a nominal
cut-off grade of 0.09 g / t Au. Economic mineralization occurs most intensely in
Susan and Diana areas, mainly in Cayhua and Laura areas, in narrow NW-SE
bearing structures in Diana and North Cayhua expansion zones, and as colluvial
deposits in South and West slopes located at the foot of the deposits Diana and
Susan.
Following figures show the interpretation of mineralization.

62
Figure 14-3: Perspective view of Interpretation and general mineralization
Laura
Susan
Exp.
Scree
Cayhua
Slope
Scree Slope

63
Figure 14-4: Perspective view section of northern Cayhua pit and Expansion Diana
Pit North Cayhua
Pit Diana expansion
Legend
Oxid. Min.
Oxid. Waste
Sulfide
Ore

64
Figure 14-5: Perspective view mineralization section pit Susan
Pit Susan
Bench 4795
Legend
Oxid. Min.
Oxid. Waste.
Sulfide
Ore
Pit Susan
Legend
Oxid. Min.
Oxid. waste.
Sulfide
Ore

65
Figure 14-6: Perspective view mineralization section pit Cayhua
Legend
Pit Cayhua
Bench 4835
Pit Cayhua
Legend

66
Figure 14-7: Perspective view mineralization section pit Laura
Pit Laura
Legend
Pit Laura
Legend

67
14.1.4 Compositing and Statistics Analysis
The statistical analysis was completed by Engineer Jesus Limaylla, Geology
Manager of MIRLSA, with composites of 5 m. The QP agrees with this approach.
The compositing was completed using the MineSight mining software package,
basic statistics for the combined DDH and RCD data were generated on all the
deposits (Scree Slope, Susan, Cayhua, Diana expansion, Cayhua North, Laura
and Scree Slope Expansion) of the Corihuarmi Mine. Table 14-2 shows the
summary of the reported statistics for all deposits.
Table 14-2: Summary of Mineral Resources (Measured and Indicated) per deposit
Global Statistics
Zona Variable Count Min Max Average Std. Dev. Variance CV
Global Au (g/t) 17186 0.010 90.920 0.1201 1.1260 1.2679 9.377
Source: Andean CG

68
Figure 14-8: Report of the histograms and curves of the gold grades

69
14.1.5 Variography
Variography is used to describe the spatial variability or correlation of an
attribute (gold, silver, sulphur, etc.). The spatial variability is traditionally
measured by a variogram, which is generated by the averaged squared difference
of data points at a nominated distance (h), or lag (Isaaks and Srivastava, 1989).
The averaged squared difference (variogram or γ(h)) for each lag distance is plotted
on a bivariate plot where the X-axis is the lag distance and the Y-axis represents
the average squared differences (γ(h)) for the nominated lag distance.
In this document, the term “variogram” is used as a generic word to designate the
function characterizing the variability of variables versus the distance between
two samples. Both a traditional measure and a variogram have been applied for
the estimation studies completed for the Corihuarmi Mine.
The determined experimental variography fits in a series of mathematical models

which, when they are used in the kriging algorithm, will recreate the spatial
continuity observed in the variography.
The Data Analyst application has been employed to generate and model the
variography. The rotations are reported as input for grade estimation, with X
(rotation around the Z axis), Y (rotation around Y ') and Z (rotation around X``)
also being referred to as the major, semi-major and minor axes.
Two spherical models have been used to model the experimental variograms
(Table 14-3). For the mineralization, the short range structure was modeled with
18m, 15m and 3m ranges for the major, semi-major and minor axis respectively,
while the adjusted general ranges were 74m, 40m and 24m.

70
Table 14-3: Experimental Variograms
Range 1 (m) Range 2 (m)

Nugget Sill 1 Sill 2
Domain Semi Semi
(C0) (C1) Major Minor (C2) Major Minor
Majo Majo
(Rotation:- r3: 131, 2: 15, 3: 0) r
Mineralization
0.32 0.33 18 15 3.0 0.35 74 40 24
(Minzon=1)
Background
0.20 0.33 50 25 6.0 0.50 90 80 23
(Minzon=0)
Figure 14-9: Trend of the variograms at blast holes
Next, the graphs of the runs for the calculation of variograms for each deposit:

71
Figure 14-10: Variograms pit Scree slope

72
Figure 14-11: Variograms pit Susan

73
Figure 14-12: Variograms of grade of gold - pit Cayhua

74
Figure 14-13: Variograms of grade of gold - pit north Cayhua

75
Figure 14-14: Variograms of grade of gold - pit Laura

76
77
Note: It has been interpreted from the statistics that the Diana and Cayhua North
expansion zones belong to the same population, for which the same parameters
have been used for both zones. Likewise, the Scree Slope and Scree Slope
expansion have the same formation origin, so the same parameters have been
used for both zones.
14.1.6 Block model development and grade estimation

Block models were generated using the MineSight mining software package. A
master block size of 5mE x 5mN x 5mRL was selected with a volume percentage
storage to improve the volume accuracy represented by the model blocks. The
density was defined in Table 14-4 according to the material by type of
mineralization in each zone.
Table 14-4: Density by zone
Density by Pits
Pit Oxides Sulfides
SUSAN 2.22
DIANA 2.35
SCREE SLOPE 2.22
DIANA EXPANSION 2.23 2.30
CAYHUA 2.04 2.30
NORTH CAYHUA 2.30 2.48
LAURA 2.35 2.44
Source: AndeanCG

78
Figure 14-15: Density by zone
Source: AndeanCG
The following table 14-5 defines the parameters of the block model.
Table 14-5: Block model parameters
East North Elevation

Origin 437,400 8,609,200 4400
Extent (m) 3000 2200 550
Parent Block size (m) 5 5 5
Number of Blocks (parent) 600 440 110

79
Gold grade were interpolated using both the Ordinary Kriging technique (OK) and
the Log Kriging (LK) technique. For the purposes of this report, only the OK
estimate of Au was considered adequate and convenient.
We show the visualization of the block model in the following figures:
Figure 14-16: Perspective view section coding of the block model Scree Slope expansion

80
Figure 14-17: Perspective view section coding of the block model Scree Slope
SECTION
Exp.
Figure 14-18: Perspective view section coding of the block model Susan
SECTION

81
Figure 14-19: Perspective view section coding of the block model Cayhua
SECTION
Figure 14-20: Perspective view section coding of the block model Diana expansion
SECTION EXP.

82
Figure 14-21: Perspective view section coding of the block model Laura
SECTION
Figure 14-22: Perspective view section coding of the block model North Cayhua
SECTION

83
Figure 14-23: Zones of Pits
Figure 14-24: Section lines in Economic Pits
Grade Estimation
The OK method was applied in obtaining grade estimates for gold within the
outlined domains. This method of grade interpolation is one of the most common
geostatistical methods for estimating the block grade. In this interpolation

84
technique, contributing composite samples are identified using a search volume
applied from the center of each block. The weights are determined so as to
minimize the error variance considering both the spatial location of the selected
composites and the modelled variogram. Variography describes the correlation
between composite samples as a function of distance. The weighted composite
sample grades are then combined to generate a block estimate and variance.
Grade estimates were obtained using the MineSight implementation of the

ordinary kriging algorithm. Inverse distance squared and nearest neighbor grade
estimates were also completed within these domains to allow comparison.
Grade Estimate Approach
Grade estimates within the domains (hard boundary between mineralization and
background) were generated from 5m composites using the OK interpolation.
Grade estimates were interpolated into parent blocks (all sub blocks were
assigned the parent block grades) within the mineralized envelope only. Parent
blocks were discretized using four points in the east dimension, four points in
the north dimension, and one point in the RL dimension, for a total of 16
discretization points per block.
14.1.7 Mineral Resource Classification

The grade estimates for deposits have been generated in accordance with the
criteria set forth in Canadian National Instrument guidelines 43-101. Therefore,
no material classified as inferred has been considered for the estimation of
Mineral Resource.
Keeping in mind that the estimation was limited to the siliceous alteration (SIL)
and the drilling spacing was globally 25m to 50m (locally 10mx10m or better),
Andean CG considered classification results criteria are adequate. The
classification of the estimated Mineral Resources has been made through a
matrix that relates to the number of probes, number of composites used and
distance to the nearest composite. Ranges of distances for each zone were
obtained by means of an analysis of the data according to the estimation variance.

85
The Mineral Resources estimated in all the deposits of this study have been
updated, considering that for the Mineral Resource estimation the model was
updated with the blast holes in areas that are currently being mined. This is
shown below in the matrix classification example of Mineral Resources (Cayhua
zone).
Table 14-6: Mineralization in two zones
Matrix of Mineral Resources classification - Cayhua

Class Distribution N° DDH Var Au
Measured 1.0-28 3.0-12 0-1.0
Indicated 28.01-40 2.0-13 0-1.0
Indicated 1.0-40 1.0-12 0-1.0
Figure 14-25: Mineralization in two zones
The figure shows mineralization in two zones of Cayhua, where it is easy to

appreciate the percentage of mineralization lost as Mineral Resources due to the
depth of the mineral located in narrow structures and the high volume of debris
that would have to be extracted for its exploitation, which would make it un-

86
economic. In the figure 14-20, the percentage of Mineral Resource that would not
pass into reserves would be 40%.
14.2 Corihuarmi Mineral Resource Report

The grade estimates for Diana, Cayhua, north Cayhua, Scree Slope, Laura, Susan
and expansion Scree Slope deposits have been classified as a combination of
Measured and Indicated Mineral Resource in accordance with the criteria laid out
in the Canadian National Instrument 43-101 (“NI 43-101”) guidelines and the
classifications adopted by CIM. The reportable Mineral Resources for the
mineralized zones deposits already mentioned have been calculated for a series
of cut-off grades by Andean CG (0.08, 0.09, 0.1, 0.13, 0.15, 0.2, 0.25 and 0.3 g/t
gold) and are presented in Table 14-6. Using a cut-off grade of 0.09 g / t with a
price of gold 1,386 $/Oz Au, a total of 22,762 kt with an average gold grade of
0.24 g/t Au for 179.03 koz of Au are reported for combined Deposits as of March
31, 2017.
Table 14-7 shows the different gold prices used the cut-off determination.
Table 14-7: : Gold prices used in cut-off grade determination
Sale Vneto Vneto Cut off
$ /Oz Au $ /Oz Au $ /gr Au gr / tn

1,552 1,497.20 48.14 0.080
1,386* 1,330.84 42.79 0.090
1,252 1,197.76 38.51 0.100
976 921.35 29.62 0.130
853 798.51 25.67 0.150
654 598.88 19.25 0.200
534 479.10 15.40 0.250
454 399.25 12.84 0.300
(*) Price to determinate the cut off.

87
Table 14-8: Mineral Resources Indicated
Au
Cut Off
g/t (g/t)
SUSAN 0.09 654,532 0.21 4,455

CAYHUA 0.09 680,307 0.15 3,175
CAYHUA NORTE 0.09 337,735 0.23 2,525
EXPANSION DIANA 0.09 463,134 0.19 2,790
LAURA 0.09 1,340,062 0.25 10,741
SCREE SLOPE 0.09 246,918 0.25 1,981
SCREE SLOPE EXPANSION 0.09 185,458 0.17 1,027
TOTAL 0.09 3,908,143 0.21 26,684
Table 14-9: Mineral Resources Measured
Au
Cut Off
g/t (g/t)
SUSAN 0.09 3,767,216 0.22 26,343

CAYHUA 0.09 4,078,355 0.21 28,070
CAYHUA NORTE 0.09 2,316,044 0.35 26,332
EXPANSION DIANA 0.09 2,884,213 0.26 23,924
LAURA 0.09 3,087,309 0.22 21,420
SCREE SLOPE 0.09 1,318,107 0.31 13,167
TOTAL 0.09 18,854,262 0.25 152,343

88
Table 14-10: Mineral Resources Measured and Indicated by deposit*
Scree slope Susan Cayhua

Measured + Indicated Measured + Indicated Measured + Indicated
Tonnes Au Metal Tonnes Au Metal Tonnes Au Metal
Cutoff
(kt) (g/t) (koz) (Kt) (g/t) (koz) (Kt) (g/t) (koz)
0.08 1,629 0.293 15.3 4,613 0.211 31.307 5,539 0.187 33.4
0.09 1,565 0.301 15.1 4,422 0.217 30.792 4,759 0.204 31.2
0.10 1,511 0.308 15.0 4,189 0.223 30.091 4,198 0.219 29.5
0.13 1,321 0.336 14.3 3,507 0.245 27.572 3,078 0.258 25.5
0.15 1,180 0.360 13.6 3,043 0.261 25.493 2,595 0.280 23.3
0.20 892 0.420 12.0 1,837 0.317 18.737 1,587 0.348 17.7
0.25 711 0.470 10.7 1,044 0.390 13.081 945 0.433 13.2
0.30 569 0.518 9.5 628 0.469 9.466 587 0.530 10.0
Expansion Diana North Cayhua Laura
Measured + Indicated Measured + Indicated Measured + Indicated
Tonnes Au Metal Tonnes Au Metal Tonnes Au Metal
Cutoff
(kt) (g/t) (koz) (Kt) (g/t) (koz) (Kt) (g/t) (koz)
0.08 3,527 0.240 27.2 2,912 0.316 29.6 4,428 0.226 32.162
0.09 3,347 0.248 26.7 2,654 0.338 28.9 4,427 0.226 32.161
0.10 3,132 0.259 26.1 2,426 0.361 28.2 4,422 0.226 32.147
0.13 2,409 0.302 23.4 1,920 0.427 26.3 4,330 0.228 31.786
0.15 2,024 0.333 21.7 1,667 0.470 25.2 4,103 0.233 30.764
0.20 1,336 0.415 17.8 1,280 0.560 23.1 2,856 0.257 23.630
0.25 888 0.513 14.6 1,023 0.645 21.2 1,321 0.296 12.568
0.30 638 0.607 12.5 842 0.725 19.6 459 0.343 5.063
Expansion Scree slope TOTAL COMBINED DEPOSITS
Measured + Indicated
Tonnes Au Metal Tonnes Au Metal
Cutoff
(Kt) (g/t) (koz) (Kt) (g/t) (koz)
0.08 1,601 0.2749 14.15 24,248 0.23 183.06
0.09 1,588 0.2763 14.11 22,762 0.24 179.03
0.10 1,578 0.2775 14.08 21,457 0.25 175.06
0.13 1,513 0.2846 13.84 18,079 0.28 162.71
0.15 1,448 0.2912 13.55 16,059 0.30 153.67
0.20 1,159 0.3198 11.92 10,949 0.36 124.96
0.25 797 0.364 9.322 6,728 0.44 94.73
0.30 515 0.4136 6.845 4,238 0.54 72.96
(*) Mineral Resources are taken from the oxide zone

89
14.3 Relevant Factors
AndeanCG is not aware of any relevant factors which may materially impact the
Mineral Resource stated herein.
15 Mineral Reserve Estimates

The Mineral Resource was evaluated for its potential conversion to a Mineral
Reserve.
Based on Measured and Indicated Mineral Resources only and gold priced at USD
$ 1250/Oz, a cost benefit exercise was undertaken to determine optimal pit
design. Various factors were considered, including; rock type, mineral grade,
slope angle and metallurgical recovery.
Seven deposits hosting Proven and Probable Mineral Reserve were determined
within the Corihuarmi Mining Unit (Refer to Table 15-1).
Table 15-1: Deposits
Pits
Pit Susan
Pit Scree Slope
Mining Unit Pit Cayhua
Corihuarmi Pit north Cayhua
Pit expansion Diana
Pit Laura
Pit expansion Scree
Slope
Table 15-2: Mineral Reserves (Proven and Probable)
Reserves
GRADE OUNCES
Classification TM ORE
(g/t) Au
Proven 9,918,907 0.286 91,244.41

Probable 1,010,363 0.237 7,683.59
(Proven
10,929,270 0.282 98,928.00
& Probable)

90
Table 15-3: Summary of gold Mineral Reserves (Proven and Probable)
CUT OFF GRADE GRADE Au

PRICE PIT TM ORE OUNCES Au TM WASTE TM TOTAL SR
(g/t Au) (g/t Au)
0.111 Susan 2,375,304 0.253 19,312 522,665 2,897,969 0.240
0.097 Scree Slope 309,324 0.290 2,888 221,252 530,576 0.759
0.101 Cayhua 2,946,727 0.250 23,731 949,792 3,896,519 0.420
1,250 0.097 A. Diana 765,251 0.368 9,048 450,784 1,216,035 0.670
0.099 Laura 1,688,670 0.205 11,145 300,257 1,988,927 0.210

Cayhua
0.099 1,727,274 0.412 22,866 1,582,578 3,309,852 0.950
Norte
A. Scree
0.105 1,116,720 0.277 9,938 707,183 1,823,903 1.021
Slope
10,929,270 0.282 98,928 4,734,511 15,663,781 0.433
Based on this exercise, approximately 10.9M tonnes of ore with an average grade
of 0.282 g/t Au was determined. This ore contains an estimated 98,928 ounces
of gold and approximately 4.75M tonnes of dump waste.
The seven discreet deposits are described separately below:
15.1.1 Susan Pit

The Proven and Probable Mineral Reserve for the Susan Pit is determined as
approximately 19.31k ounces of gold (Table 15-4).
Table 15-4: Mineral Reserve (proven and probable) of Pit Susan updated on March 31st,
2017
Ore Au Ounces Waste Total

Pit SR
TM g/TM Oz TM TM

91
Figure 15-1: Pit Design Susan - plan view
Figure 15-2: Cross Section A - A'

92
Figure 15-3: Cross Section B - B'
Table 15-5: Susan Pit bench - Mineral Reserve (Proven and Probable)

BENCH
Pit SR
TM g/TM Oz TM TM

93
The table 15-5 details the distribution of the Mineral Reserve (Proven and
Probable) by bench, as well as dismantling, stripping ratio (S / R) and gold ounces
estimated in the Susan Pit.
15.1.2 Scree slope Pit

The Proven and Probable Mineral Reserve for the Scree Slope Pit is estimated as
Table 15-6: Mineral Reserve (proven and probable) of Scree Slope Pit updated on March
31st, 2017

Pit SR
TM g/TM Oz TM TM
Figure 15-4: Pit Design Scree slope - plan view

94

95
Figure 15-7: Cross Section C - C'

96
Table 15-7: Scree Slope Pit bench - Mineral Reserve (Proven and Probable)

BENCH
Pit SR
TM g/TM Oz TM TM
Table 15-7 details the distribution of Mineral Reserve (Proven and Probable) by
bench, as well as dismantling, stripping ratio (S / R) and gold ounces estimated
in the Scree Slope Pit.
15.1.3 Cayhua Pit

The Proven and Probable Mineral Reserve for the Cayhua Pit are determined as
Table 15-8: Mineral Reserve (Proven and Probable) of Pit Cayhua updated on March 31st,
2017

Pit SR
TM g/TM Oz TM TM

97
Figure 15-8: Pit Design Cayhua - plan view

98

99
Table 15-9: Pit Cayhua bench - Mineral Reserve (Proven and Probable)

BENCH
Pit SR
TM g/TM Oz TM TM
The Table 15-9 details the distribution of Mineral Reserve (Proven and Probable)
by banks, as well as dismantling, stripping ratio (S / R) and gold ounces
measured in the Cayhua Pit.

100
15.1.4 Cayhua North Pit
The Proven and Probable Mineral Reserve for the Cayhua North Pit is estimated
as approximately 22.86k ounces of gold (Table 15-10).
Table 15-10: Mineral Reserve (Proven and Probable) of Cayhua North Pit updated on March
31st, 2017

Pit SR
TM g/TM Oz TM TM
Figure 15-11: Design Cayhua North Pit - plan view

101

102
Table 15-11: Cayhua North Pit bench - Mineral Reserve (Proven and Probable)

BENCH
Pit SR
TM g/TM Oz TM TM
Table 15-11 details the distribution of the Mineral Reserve (Proven and Probable)
by bench, as well as dismantling, stripping ratio (S / R) and gold ounces
measured in the Cayhua North Pit.

103
15.1.5 Expansion Diana Pit
The Proven and Probable Mineral Reserve for the Expansion Diana Pit is
estimated as approximately 9.04k ounces of gold (Table 15-12).
Table 15-12: Mineral Reserve (Proven and Probable) of Expansion Diana Pit updated on
March 31st, 2017

Pit SR
TM g/TM Oz TM TM
Figure 15-14: Pit Design expansion Diana - plan view

104

105
Table 15-13: Diana Expansion Pit - Mineral Reserve (Proven and Probable)

BENCH
Pit SR
TM g/TM Oz TM TM
measured in the Expansion Diana Pit.
15.1.6 Laura Pit

The Proven and Probable Mineral Reserve for the Laura Pit is estimated as
The Mineral Reserve (Proven and Probable) of Laura Pit were updated on March
31st, 2017

106
Table 15-14: Mineral Reserve (Proven and Probable) of Laura Pit updated on March 31st,
2017

Pit SR
TM g/TM Oz TM TM
Figure 15-17: Pit Design Laura - plan view

107

108
Table 15-15: Laura Pit - Mineral Reserve (Proven and Probable)
BENCH
measured in the Laura Pit.

109
15.1.7 Expansion Scree Slope Pit
The Proven and Probable Mineral Reserve for the Expansion Scree Slope Pit is
estimated as approximately 9.93k ounces of gold (Table 15-16).
Table 15-16: Mineral Reserve (Proven and Probable) of Pit Scree Slope updated in March
31st, 2017

Pit SR
TM g/TM Oz TM TM
Figure 15-20: Pit Design Expansion Scree Slope Pit - plan view

110

111

112
Table 15-17: Expansion Scree Slope Pit bench - Mineral Reserve (Proven and Probable)

Pit
BENCH SR
TM g/TM Oz TM TM
by bench, as well as waste, stripping ratio (S / R) and gold ounces measured in
the Expansion Scree Slope. Pit
15.2 Reserves Included in total Mineral Resources

Mineral Reserves are estimated based on a mineral resource. A Mineral Reserve
is that part of a Mineral Resources that the Qualified Person considers to be
economically viable.
Mineral Reserves are drawn from the Mineral Resource and are NOT an addition
to the Mineral Resource.
This section refers to the Mineral Reserve (Proven and Probable) of Pits (Susan,
Scree Slope, Cayhua, Cayhua North, Expansion Diana, Laura and Expansion

113
Scree Slope) which are included in the total the Mineral Resource (Measured and
Indicated), it is necessary to mention that the effective date of these studies both
the Mineral Reserve and Mineral Resource are updated from March 31, 2017,
having as reference the feasibility study, which was developed by
multidisciplinary personal (metallurgical engineer, mine engineer and geological
engineer) and headed by Andres Rivera who is the QP, the details are in the table
15-18.
The effective date of the Mineral Reserve estimates presented in this Technical
Report is – March 31st, 2017.
Table 15-18: : Mineral Reserves (Proven and Probable) and Mineral Resource (Indicated &
Measured)
Resources Reserves
TM GRADE OUNCES GRADE
Classification Classification TM ORE OUNCES Au
ORE (g/t) Au (g/t)
(Measured) 18,854,262 0.250 152,343 Proven 9,918,907 0.286 91,244.41
(Indicated) 3,908,143 0.210 26,684 Probable 1,010,363 0.237 7,683.59
(Measured (Proven
22,762,405 0.240 179,027.29 10,929,270 0.282 98,928.00
& Indicated) & Probable)
Table 15-19: Mineral Reserves (Proven and Probable) included in total Mineral Resource
(Measured and Indicated)
RESOURCES* RESERVES
PIT CUT OFF TM ORE GRADE Au OUNCES Au CUT OFF TM ORE GRADE Au OUNCES
Susan 0.09 4,421,747 0.22 30,792 0.111 2,375,304 0.253 19,312
Scree Slope 0.09 1,565,024 0.3 15,147 0.097 309,324 0.29 2,888
Cayhua 0.09 4,758,661 0.2 31,234 0.101 2,946,727 0.25 23,731
Diana
0.09 3,347,347 0.25 26,722 0.097 765,251 0.368 9,048
expansion
Laura 0.09 4,427,371 0.23 32,161 0.099 1,688,670 0.205 11,145
Cayhua North 0.09 2,653,779 0.34 28,860 0.099 1,727,274 0.412 22,866
Scree Slope
0.09 1,588,476 0.28 14,111 0.105 1,116,720 0.277 9,938
expansion
22,762,405 0.24 179,027 10,929,270 0.282 98,928
(*) Mineral Resource is taken from the oxide zone, Measured and Indicated
resources

114
15.3 Methods
Measured and indicated Mineral Resource was converted into a Mineral Reserve
by applying the appropriate modifying factors, as described herein, to the possible
forms of mining blocks created during the process of designing the mine. Given
the important production history at the mine, the main base for the modifying
factors used to convert Mineral Resource into Reserve are historical cost, recovery
and performance of mining methods selected at the mine.
Mining blocks consist entirely of Measured and Mineral Resources indicated.

Reserve tonnes and grade are calculated using the following factors:
• Mining recovery: a factor that results in ore loss (tonnage reduction) due to the
extraction method applied and the ore body.
• Operating costs and others: It indicates the costs of mining and processing in
dollars per tonne, as well as the stable value of the ounce of gold and the sales
cost due to maquila and royalties.
Cut-off=(milling cost + mining cost)/(price – sales costs) x recovery
15.3.1 Cut-off evaluation

The economic cutoff varies by mining method and ore body and includes direct
and indirect mining costs, processing costs, and general and administrative
costs.
The theoretical concept of this calculation is based on estimating the minimum

operating grade for an Open Pit, obtained by leveling the cost of production
divided between the product of the net price and the recovery of ore.
(Cost Production)
Cut off =
(Net price) x (Recovery of Ore)
[a] = Cost Production

[b] = Net price
[c] = Recovery of Ore
The cut-offs contained herein represent Andean CG’s understanding of the

current mining, processing and G&A costs at Corihuarmi.

115
Table 15-20: Cut-off evaluation
Cost of
Gold sale Economic Marginal
Mininig plan Processing Recovery refinery and
Tajo Au Cut-off Cut-off
(US$/t) (US$/t) (%) sale
(US$/Oz) (US$/t) (US$/t)
(US$/Oz)
DIANA 1.82 3.16 82% 1,250 54.71 0.158 0.1

SUSAN 2.72 3.2 75% 1,250 54.71 0.205 0.111
SCREE SLOPE 1.16 3.24 86% 1,250 54.71 0.132 0.097
CAYHUA 1.51 3.05 79% 1,250 54.71 0.151 0.101
NORTH CAYHUA 1.78 3.05 80% 1,250 54.71 0.157 0.099
EXPANSION DIANA 1.66 3.19 85% 1,250 54.71 0.148 0.097
LAURA 1.68 3.05 80% 1,250 54.71 0.154 0.099
EXPANSION SCREE SLOPE 1.16 3.24 80% 1,250 54.71 0.143 0.105
Table 15-21: Cut-Off Summary for Corihuarmi Mine
E XP A NS IO N
S CRE E C A Y HUA E XP A NS IO N
C UT O F F of C O R IHUA R MI P IT's S US A N C A Y HUA L A UR A S CRE E TO TA L *
S LOP E NO R TE DIA NA
S LOP E
MINE A ND P R O C E S S ING C O S T ($/tn)
Mine cos ts
A dditional per ore trans portation 0.158 0.190 0.000 0.000 0.141 0.000 0.190 0.106
P lant cos t 1.321 1.321 1.321 1.321 1.321 1.321 1.321 1.321
C apex for P A D expans ion 0.600 0.600 0.600 0.600 0.600 0.600 0.600 0.600 #¡R E
A dminis trative cos t 1.125 1.125 1.125 1.125 1.125 1.125 1.125 1.125
T otal Mine and P roc e s s ing C os t (a) $ 3.204 $ 3.236 $ 3.046 $ 3.046 $ 3.187 $ 3.046 $ 3.236 $ 3.152
S A L E S C O S T ($ /O z A u)
R oyalties to Minandex* 36.08 36.08 36.08 36.08 36.08 36.08 36.08 36.08
G overment R oyalties 12.03 12.03 12.03 12.03 12.03 12.03 12.03 12.03
D ore trans portation and s ales cos ts 6.60 6.60 6.60 6.60 6.60 6.60 6.60 6.60
T otal S ale s C os t & Maquila (e ). $ 54.710 $ 54.710 $ 54.710 $ 54.710 $ 54.710 $ 54.710 $ 54.710 $ 54.710
(*) Averag e 3% if the pric e is g reater than US $ 350 / ounc e, ac c ording to the as s ig nment c ontrac t.
R ec overies (c ). 75.29% 86.41% 78.61% 80.12% 85.18% 80.00% 80.00% 80.00%
G OL D P R IC E (us $/Oz Au)

Au P ric e (d) $ 1,250.0 $ 1,250.0 $ 1,250.0 $ 1,250.0 $ 1,250.0 $ 1,250.0 $ 1,250.0 $ 1,250.0
O z troy / gr equivalent (f) 31.1035 31.1035 31.1035 31.1035 31.1035 31.1035 31.1035 31.1035
NE T INC O ME (g= d-e): $ /O z A u 1,195.29 1,195.29 1,195.29 1,195.29 1,195.29 1,195.29 1,195.29 1,195.29
NE T INC O ME (b= g/f): $ /gr A u 38.429 38.429 38.429 38.429 38.429 38.429 38.429 38.429
C ut Off ((a / (b*c )): g r/tn Au 0.111 0.097 0.101 0.099 0.097 0.099 0.105 0.103
[a] = Cost Production

[b] = Net price
[c] = Recovery of Ore

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15.4 Factors That May Affect the Mineral Reserve Estimate
AndeanCG know of no other existing environmental, permitting, legal, socio-
economic, marketing, political or other factors that might materially affect the
mineral reserve estimate contained herein.
16 Mining Methods
Corihuarmi is a mine that maintains its operations with normality; the mining
method is open pit.
16.1 Current Mining Methods

16.1.1 Drill and Blast
All the pits require blasting before making the load. Drilling is done with a drilling
machine Soosan 15 STD 14E, the diameter of the drill is 4 inches. The perforation
pattern (burden and spacing) is generally a function of the pit and the hardness
of the rock, in Table 16-1 we show the burden distribution and spacing for each
pit. The blasting is carried out with explosives based on ANFO and emulsion and
started with detonators of the NONEL type (non-electric).
Table 16-1: Distribution of burden and spacing for each pit
Parameters Spacing Burden

Susan Pit 2.8 2.43
Cayhua Norte Pit 4 3.46
Cayhua Pit 4 3.46
Diana Pit 4 3.46
Amp. Diana Pit 4 3.46
Laura Pit 4 3.46
Scree Slope Pit 4 3.46
Amp. Scree Slope
Pit 4 3.46
16.1.2 Grade Control
Grade control is based on sampling and assay of drill chips generated during the
preparation of blast holes.
Grades from blast hole cuttings are compared against expected grades based on
resource modelling.
All samples are analyzed at the on the site laboratory

117
16.1.3 Load and Haul
Post blasting, material is loaded into haulage trucks using excavators.
Haulage trucks transport ore to a holding point for the crushing circuit. Front
end loaders feed the crushing circuit via hoppers, crushed ore is stored in a fine
hopper. Crushed ore is loaded in to haulage trucks via the fine hopper and
transported to the leach pad. Waste material is loaded by excavators and
transported in haulage trucks directly to waste dumps.
The state of the tracks is one of the predominant factors for an optimization in
the transport, maintaining the adequate operating width of 8 meters, a
minimisation in curves and the maximum gradient in the ramps of 10%.
16.2 Parameters Relevant to Mine Designs and Plans

16.2.1 Geotechnics
The Susan, Diana and Scree Slope expansion geotechnical study were done by
Environmental Solutions (August 2010). The study was based on existing
geological data, geotechnical and structural mapping of the field and logging of
drilling cores. In summary, the evaluation resulted in the recommendation of a
high and wide bench of 5 m and 3 m respectively, 70 degrees of inclination
(0.364H / 1V), if it were 65 degrees (0.46H / 1V) bench slope for Susan and
Diana, 62 degrees (0.53H / 1V) and 58 degrees (0.61H / 1V) for Scree Slope; A
final slope angle of 46 degrees for Susan and Diana, 32 and 36 degrees for Scree
Slope.
A geotechnical study of the Susan, Diana and Scree Slope Expansion Pits was
reported by Environmental Solutions (August, 2010). The study was based on
available geological, geotechnical and structural data taken from observations
made on surface and taken from drill core. Andean Consulting Group SAC
summarize the key observations/recommendations from this report below:
 Benches of 5m high and 3m wide are suggested

 Final slope angles by pit are recommended atg:
 Susan and Diana - 46°
 Scree Slope – Between 32 and 46°

118
Andean Consulting Group SAC recommend an on-going program geotechnical
monitoring.
Vector Peru S.A.C. and Sergio Brito Consultoria Ltda (2008) undertook an
evaluation of the final pit wall designs. This evaluation determined that pit walls
proposed by IRL would be “acceptable” with an increased bench. The 2008 study
further recommended that geotechnical information should be recorded from the
beginning of pit excavation as part of routine record keeping.
It was noted that evolving geotechnical records will enhance the operator’s ability
to evolve the pit in an optimal manner.
The 2008 report recommends that a system of slope stability monitoring should
be in place during exploitation. Such systems should be designed to detect and
monitor potentially unstable areas. Areas identified as potentially unstable can
be remedied before they critically fail.
The Geotechnical study of the north Cayhua zone, Scree Slope expansion; It was
concluded that, according to the design, the final slope at an angle of 43 °, 36 °,
45 °, 22 ° at the north Cayhua zone, Scree Slope Extension zone, Laura zone and
dump waste respectively, according to the exploitation, which finally according to
the design will have to be adjusted through daily work. According to the results
of physical stability, both local and global, the areas mentioned above are
considered stable, whose result exceeds the value of F.S. = 1.10 for pseudostatic
analysis and F.S. = 1.50 for static analysis. It was recommended that reevaluation
of the parameters of mechanical resistance of the soils involved is performed,
whose value is prone to variation as a function of environmental conditions and
phenomena typical of the area, such as erosion, water table, surface runoff and
underground flows, etc. For purposes of hydrological stability at the final closure
of the deposit, it was recommended to design the construction of coronation
channels and gutters within the sidewalks, also for purposes of final closure. For
purposes of geochemical and physical stability, it was recommended that within
the cover there be an impermeable stratum to prevent the entrance of water
produced by rainfall.

119
In the following figures, profiles of the slopes of two zones in Corihuarmi are
shown.
Figure 16-1: Diana Pit wall
Figure 16-2: Diana Expansion Pit Wall

120
16.2.2 Hydrogeological
The predominant aquifer in the study area is of the fractured type, distributed in
rocks of igneous origin that have been affected by faulting and fracturing in the
area.
Spring water is the only source of ground water in the project area.
Springs are concentrated on the south side of the slopes of Cerro Pará, within the
lands of the community of Huantán.
Generally, springs are produced in the contact zone between high permeability
materials (moraines, residual and fluvio-glacial deposits) and those of low
permeability (volcanic and volcanic-sedimentary rocks). Known springs within
the project area are dry during dry periods.
The principle source of spring water in the project area are seasonal rains.
16.2.3 Mine Design

In 2010 Minera IRL commissioned AMC consultants (AMC) to estimate a Life of
Mine (LOM) at Corihuarmi. LOM estimates were based on optimised pit designs
discussed in section 16.4.
The current LOM plan uses these same designs.
During operation cutting grades varied from those indicated during this study to
ensure economic and operational stability.
Table 16-2: Summary Material Inventory by Deposit
GRADE Au
CUT OFF PIT TM ORE OUNCES Au TM WASTE TM TOTAL SR
(g/t)
0.111 Susan 2,375,304 0.253 19,312 522,665 2,897,969 0.240
0.097 Scree Slope 309,324 0.290 2,888 221,252 530,576 0.759
0.101 Cayhua 2,946,727 0.250 23,731 949,792 3,896,519 0.420

Diana
0.097 765,251 0.368 9,048 450,784 1,216,035 0.670
expansion
0.099 Laura 1,688,670 0.205 11,145 300,257 1,988,927 0.210
Cayhua
0.099 1,727,274 0.412 22,866 1,582,578 3,309,852 0.950
Norte
Scree Slope
0.105 1,116,720 0.277 9,938 707,183 1,823,903 1.021
expansion

121
16.2.4 Susan Pit
The optimum cone was determined by the Lerchs - Grossman method, referring
to the geotechnical parameters considered in the geometry shown in Table 16-3
and in Figure 16-3.
Table 16-3: Design Parameters Susan Pit
Detail Number Units

Bench high 10 s meters
Operational slope angle 70 degrees
Bench width 6.4 meters
Final slope angle 45 degrees
Ramp width 10 meters
Ramp gradient 10 %
Figure 16-3: Pit Design Geometry Susan

122
16.2.5 Scree Slope Pit
The optimum cone was determined by the Lerchs - Grossman method, referring
to the geotechnical parameters considered in the geometry shown in Table 16-4
and in Figure 16-4.
Table 16-4: Design parameters Scree Slope Pit.
Detail Number Units

Bench high 10 meters
Bench width 7 meters
Ramp gradient 10 %
Figure 16-4: Pit Design Geometry Scree Slope
16.2.6 Cayhua Pit

The optimum cone was determined by the Lerch - Grossman method, referring to
the geotechnical parameters considered in the geometry shown in Table 16-5 and
in Figure 16-5.

123
Table 16-5: Design Parameters Cayhua Pit
Detail Number Unit

Ramp gradient 10 %
Figure 16-5: Pit Design Geometry Cayhua
16.2.7 Cayhua North Pit

in Figure 16-6.

124
Table 16-6: Design Parameters Cayhua North Pit
Detail Number Unit

Ramp gradient 10 %
Figure 16-6: Pit Design Geometry Cayhua North
16.2.8 Expansion Diana Pit

in Figure 16-7.

125
Table 16-7: Design Parameters Expansion Diana Pit
Detail number Unit

Ramp gradient 10 %
Figure 16-7: Pit Design Geometry Expansion Diana
16.2.9 Laura Pit

in Figure 16-8.

126
Table 16-8: Design Parameters Laura Pit
Detail Number Unit

Operational slope angle 70 Degrees
Final slope angle 45 Degrees
Ramp gradient 10 %
Figure 16-8: Design Geometry Laura Pit
TOE
TOE
16.2.10 Expansion Scree Slope Pit

in Figure 16-9.

127
Table 16-9: Design Parameters Extension Scree slope Pit
Detail Number Unit

Bench width 7 meters
Ramp gradient 10 %
Figure 16-9: Design Geometry Extension Scree slope Pit
16.3 Mining Schedule

The estimated Reserve in the Corihuarmi Mine, which are shown in Table 16-10,
are those used to make the mine plan, taking into account the blending between
moraines and rock. The Laura Pit is prioritised, because it is close to future
expansions of the leach pad. The detailed mining plan in which the tonnages to
be mined for the following years are shown below.

128
Table 16-10: Compiled production plan by years
YEAR 2017*
Grade Au
PIT TM Ore TM Waste Total Ounces Ounces Rec SR*
(g/t)
Diana
Susan 336,289 68,758 405,047 0.28 3,033 2,426 0.20
Scree Slope 125,600 25,120 150,720 0.36 1460 1168 0.20
Cayhua 531,603 265,454 777,377 0.27 4,618 3,695 0.50
Diana Expansion 263,871 250,528 490,399 0.37 3,135 2,508 0.95
Laura 458,751 236,634 727,098 0.24 3,540 2,832 0.52
Scree Slope
190,000 275,000 588,792 0.36 2,198 1,758 1.45
Expansion
Cayhua Norte 324,211 264,581 465,000 0.39 4,073 3,259 0.82
2,230,325 1,386,074 3,616,399 0.31 22,058.00 17,646.05 0.62
YEAR 2018
Grade Au
(g/t)
Diana
Susan 492,209 109,571 601,781 0.259 4,100 3,280 0.223
Scree Slope 110,000 117,429 227,429 0.252 890 712 1.068
Cayhua 559,356 158,496 717,852 0.300 5,399 4,319 0.283
Diana Expansion 438,147 175,000 613,147 0.383 5,393 4,314 0.399
Laura 625,354 32,349 657,704 0.189 3,793 3,034 0.052
Scree Slope
265,000 123,585 388,585 0.254 2,168 1,734 0.466
Expansion
Cayhua Norte 409,933 445,261 855,195 0.440 5,794 4,635 1.086
2,900,000 1,161,693 4,061,693 0.295 27,536.29 22,029.03 0.401
YEAR 2019
Grade Au
(g/t)
Diana
Susan 564,655 125,699 690,354 0.234 4,255 3,404 0.223
Scree Slope 73,724 78,703 152,427 0.227 537.85 430.28 1.068
Cayhua 765,868 217,013 982,881 0.219 5,390 4,312 0.283
Diana Expansion 63,233 25,256 88,489 0.256 521 417 0.399
Laura 508,653 26,312 534,965 0.190 3,115 2,492 0.052
Scree Slope
312,198 152,876 465,073 0.285 2,865 2,292 0.490
Expansion
Cayhua Norte 611,669 766,289 1,377,958 0.425 8,365 6,692 1.253
2,900,000 1,392,147 4,292,147 0.269 25,048.66 20,038.93 0.480
YEAR 2020

129
Grade Au
(g/t)
Diana
Susan 982,150 218,637 1,200,788 0.251 7,923 6,339 0.223
Scree Slope
Cayhua 1,089,900 308,829 1,398,729 0.238 8,325 6,660 0.283
Diana Expansion
Laura 95,912 4,962 100,874 0.226 697 558 0.052
Scree Slope
349,522 155,723 505,245 0.241 2,707 2,166 0.446
Expansion
Cayhua Norte 381,460 106,447 487,907 0.378 4,634 3,707 0.279
2,898,945 794,597 3,693,542 0.261 24,285.88 19,428.71 0.274
*SR Stripping ratio – The relationship between TM Waste and TM Ore.
16.4 Major Mining Equipment

Mine operations are carried out by Minera IRL. There are 3 loading machines
(KOMATSU PC-350) and 2 KOMATSU-WA 470 front loaders, as well as 11 units
(Mercedes Benz Model Actross 3343k of 17 m3) and 06 hauling units (Volvo Model
FMX of 17 m3) for the extraction of the different materials typical of the mining
operation.
Table 16-11 provides the current list of equipment used for the mining operation
and the construction of leach pad expansion.
Table 16-11: List of equipment
Equipment Types Manufacturer Model Fleet Size

Excavator Komatsu P350LC-8 3
Volvo FMX 6
Trucks Mercedez Benz Actros3344K 11
Loader
Grader Komatsu WA470-6 2
John Deere 670G 1
Komatsu D155AX 1
Track dozer
Caterpillar D6T 1
Vibratory compactor John Deere H-3411P 1
Drill Soosan STD14E 1

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17 Recovery Methods
17.1 Mill Operations
The metal section of this report is based on data submitted by MIRL in the form
of spreadsheets and monthly reports from Corihuarmi Mine operation and the
Corihuarmi feasibility study.
17.2 Process Description and Flowchart

Corihuarmi Mine is a heap leach pad operation utilizing a multiple-lift, single-
use leach pad. Prior to placing the ore onto the leach pad the ore is primary
crushed. Processing of ore began in January 2008 when irrigation of the heaps
was started.
Figure17-1 provides a flowchart of the leach process. The following describes the
leach operation in more detail.
Crushing
Ore from the pits, with moisture content of 4 to 5% and granulometry of 10” to
15” on average is transported by trucks of 17 m3 towards the hopper of capacity
of 50 TM of capacity.
From the hopper capacity, the ore is fed to 3,5’ x 21’ a vibrating feeder (Grizzly),
30 HP motor power and grills of 4”. This operation consists of classifying the ore
in greater or less than 4”. In this way, the mineral greater than 4” will be fed to
the jaw crusher of 32” to 48”, with motor power of 121 KW. The capacity of this
crusher is 370 MT/h, at a setting opening of 110 mm.
The crusher discharge and the ores whose granulometry are less than 4” from
the Grizzly, will be deposited in the Nº1 1.38” x 20 m belt with 25HP motor power;
in this same belt is fed with lime at the rate of 0.6 Kg/TM of mineral. The lime
screw feeder unit is 5 m long with a power output of 2.2 KW. The belt Nº2 has a
motor of 50HP.
The ore mixed with lime from belt Nº1 will be discharged into the radial stacker
(belt Nº2), 36” x 60 m, which has an electric motor of 50 HP. Finally, the crushed

131
mineral with a smaller grain of 80% - 4” is discharged to the stock pile with a
storage capacity is 6,000 to 9,000 TM.
Leach Pad
Minera IRL as part of its mining operations at the Corihuarmi Mine is constantly
stacking ore to the leach Pad and areas of the pad are under construction as the
case of Phase 5.
The ore stacked in the crushing area with an 80% mesh size of 4" will be
transported in haulage trucks with a load volume of 17 m3 to the leach pad. CAT-
966H front end loaders load haulage trucks. The main discharge hopper has
sprinklers at two points, to mitigate dust at the time of discharge. The sprinklers
are installed with a ¾" hose which is actuated by gravity operated valves at 125
psi.

132
Table 17-1:Flowchart of the leaching process
The leach pad has a polyethylene geomembrane layer at the base and is divided
into cells with an average area of 2,000 m². Each cell is designed to hold 20,000
tonnes of ore.
Cell irrigation begins with the primary piping network consisting of a Barren
solution tank, 200HP pump and 10 "Ø HDPE. This line is an aligned channel and
runs to a manifold at the top of the pad. From the manifold the network of
secondary pipes completes the irrigation. The secondary piping network consists
of a 4" diameter pipe that runs through the leach cells. Each lay a tube which
hoses that branch out with irrigation drippers.
Caustic soda is added to the barren solution tank to maintain the pH of the
solution between 10.0 and 10.5 to avoid cyanide losses. Cyanide is also added to
the barren solution tank to maintain a concentration of 200 ppm.
The solution being filtered through the pad is collected by the drainage piping
network which is connected to two HDPE pipes which transfer the solution to the
pool of pregnant leach solution (PLS). From the PLS pond, the solution is pumped
to the adsorption circuit. The adsorption circuit is filled with activated carbon.
The activated carbon adsorbs the gold from the solution and the barren solution
(BS) leaving the gravity of the adsorption circuit returns to the barren solution
tank and is used to re-irrigate the cell again. The cycle of leaching is completed
in 90 days.
Anti-fouling is added to the barren solution to reduce the formation of flakes in

the irrigation pipes,
An excess solution pond (rainwater) is included to contain leach solution in

excess of that required for normal operations due to storm events. The excess
solution returns to the sterile tank as a makeup solution to replace the water lost
in the process due to the evaporation and wetting of the mineral.
Adsorption and Elution
The present adsorption plant is capable of treating 200m³/hr of solution. The

circuit consists of 5 cascade columns configured in series each containing 2t of
activated carbon. The activated carbon adsorbs the cyanided gold complexes,
silver and other metals in solution to remove them from the solution. When the
carbon is loaded up 8,000g/t Au in the first carbon column, the carbon is
removed from the column and sent to the elution circuit. Once this column is
empty of carbon, carbon from the second column is loaded until it also reaches
approximately 8,000g/t Au. All of the columns in the circuit will be cycled in
series in this manner, with any of the columns being able to use to load gold prior
to stripping. The last tank in the series is always filled with activated carbon that
has been stripped and reactivated.
Stripping of the gold from the carbon (elution) is conducted in a 2t Zadra circuit
at a temperature of 135ºC. Barren solution, from the desportion tank, is pumped
through a secondary heat exchanger and then into the primary heat exchanger
prior to entering the column. The solution exiting the top of the column is passed
through the other side of the secondary heat exchanger, through a cooling heat
exchanger to drop the temperature to 65ºC. After cooling the solution passes into
the electro winning cell where the gold and any silver that is present is electrowon.
The solution exiting the cell gravitates into the desorption tank and is then reused
for stripping the gold from the carbon. The total time for desorption ranges
between 11 hours and 13 hours.
The activated carbon is reactivated in a regeneration furnace followed by acid

washing prior to being cycled back to the adsorption columns for further
adsorption of gold and silver.
Harvesting and Smelting
The electrolytic cathodes saturated with cement in the electrolytic cell will be
washed with pressurized water and then filtered; obtaining the cement of gold
and silver mainly. After washing and filtration in order to volatilize the mercury,
the cement will be placed in the retort for 6 hours at a temperature of 480 ° C,
where vapor passes through a condenser using water as a refrigerant; the
condensed mercury is collected in a manifold to be packaged. The spent cold
mercury vapor exiting the collector is passed through a sulfur-impregnated

135
carbon scrubber, in order to remove traces of residual mercury and minimize
mercury emission below 0,15 mg/ m3.
The cement after the mercury is removed is melted at approximately 1300 ° C in

a 300 kg silicon carbide crucible tilting furnace, with oil injection prior to the
addition of fluxes, then the casting to obtain a DORE with a content
approximately 78% of gold and 20% of silver.
The gases produced from the smelter will be conducted via a hood and extractor
to a scrubber where these powders will be recovered which have been entrained
along with the gases during the smelting. The completely cold and clean gases of
solids go to the Atmosphere free of all pollutants. The slag resulting from the
smelting operation will be periodically recast according to the amount of slag
available, in order to recover the remaining gold and silver values; the final slag
is deposited in the leach cells.
Figure 17-1: Harvesting and smelting process

136
17.2.1 Plant Production
Mineral to Leach Pad
Mineral is placed on the leach pad as shown in Figure 17-1, Leach pads were
active between 2008 and 2015
Initially ore placement on the leach pad was slow due to commissioning issues
such as having a tight mining area and oversize in the ore to feed to the crusher.
After April 2009 the rate of placement has exceeded the budget every month.
Throughout December,2008 the placement rate slowed again due to cessation of
mining as the budgeted tonnes had been exceeded. The following figure shows
the amount of ore put into pad from 2008 until March 31, 2017.
Figure 17-2: Ore placed on pad 2008-2017
Ore placed on pad

3,500,000
3,000,000
2,500,000
2,000,000
TM
1,500,000
1,000,000
500,000
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 *2017
Ore TM 1,082, 1,216, 1,455, 2,000, 2,064, 2,375, 2,660, 2,965, 3,040, 677,60
Gold in ore
Gold contained in the ore placed on the pad is calculated based on troy ounces,
and in figure 17-2 the ounces are shown in pad indicated with their respective
ore grades for years 2008 to 2015. The following figure shows the number of
ounces put into the pad from 2008 until March 31, 2017

137
Figure 17-3: Ounces placed on pad 2008-2017
Ounces placed on pad

80,000.00
70,000.00
60,000.00
50,000.00
Oz (Au)
40,000.00
30,000.00
20,000.00
10,000.00
0.00
2008 2009 2010 2011 2012 2013 2014 2015 2016 *2017
Oz (Au) 68,970 44,358 40,634 44,215 33,028 34,173 27,309 31,291 31,161 8,576.
Au
1.982 1.134 0.868 0.687 0.498 0.447 0.319 0.328 0.319 0.394
(gr/tn)
Figure 17-3 shows the cumulative gold recovery since inception.
Figure 17-4: Cumulative Gold Recovery

138
Figure 17-3 shows that the recovery of gold has remained at an expected level
without any significant variation. It is worth mentioning that the recovery was
increasing progressively in the first years until plateauing already in the more
recent years. The expected recoveries were estimated by Kappes-Cassidy (KCA)
during the feasibility study (FS) and afterwards it has adapted tests in the same
mining operation, as shown in Table 17-3 the feasibility of the recoveries of some
deposits.
Table 17-2: Recovery estimates
Feasibility Study Recovery Estimates

Average Expected
Field Recovery
Pit Recovery Range
Expansion
72 65-80
Diana
Cayhua 83 75-84
Cayhua
74 71-84
Intermedia
Cayhua
76 71-84
North
The lowest recovery has been recognized by site staff and the column test was
initiated to gain a better understanding of the required leaching conditions. This
test was carried out on the ore of Diana and Cayhua. The test was carried out
using columns of 3.2 m high. Three trials were conducted with different
concentrations of cyanide, namely 200 ppm, 300 ppm and 400 ppm. The
distribution of lime and cyanide consumption for the gold extraction rates are
shown in Table 17-4, where only representative data from February 2017 are
observed for samples extracted from some pits.

139
Table 17-3: Ratios and use of lime and cyanide
PIT Expansion Diana Cayhua Intermediate

0.268 0.543 0.028 83.9 0.198 0.663 0.035 86.9
0.890 0.449 0.064 81.1
AVERAGE 0.579 0.496 0.046 82.531 0.198 0.663 0.035 86.891
PIT Cayhua Cayhua North
0.739 0.648 0.082 93.6 0.439 0.515 0.072 87.3
0.307 0.691 0.042 87.0
1.156 0.632 0.086 94.8
AVERAGE 0.734 0.657 0.070 91.801 0.439 0.515 0.072 87.254
17.3 Testwork
Two column leaching tests at the Diana and Cayhua expansion ore were carried
out from October 2015 to January 2016 by the plant personnel at Corihuarmi
Mine. The tests were carried out to examine the response of the Diana Expansion
material when mixed with Cayhua ore at different rates and rates of cement
addition.
The tests were carried out in columns of 3.4 m in height and 0.8m in internal
diameter. The materials tested consisted of Diana and Cayhua material at a blend
ratio of 2:1 and Diana and Cayhua material blended at a ratio of 1:1 with a
cement binder addition of 2 kg/t. The feed materials were screened, weighed,
sampled and assayed in five discrete fractions varying from minus 100 mm to
material passing 12.7 mm.
Table 17-4 summaries the results of the test work carried out over a 60-day
period. The tests were aimed to be carried out at a pH of between 10.6 and 11.5,
a free cyanide concentration of 300 ppm and an irrigation rate of 10 l / h / m².
Each column contained 2.3 t of feed material.

140
Table 17-4: Column Test Summary
Calculated Extraction Adsorption Percolation

Head Grade % Recovery Reagent Consumption Rate
Days of
Test Leaching Au g/t Au Au NaCN kg/t CaO kg/t m/day
Expansion
60 0.485 80.71 94.6 0.0536 0.588 7.6
Diana
Cayhua 60 0.455 84.57 94.6 0.0815 0.662 7.8
Cayhua
60 0.525 90.33 94.6 0.0523 0.614 7.8
Intermedia
Cayhua
North 60 0.400 77.25 94.6 0.0627 0.640 7.8
Average 60 0.466 83.22 94.6 0.0625 0.626 7.75

Average 60 0.466 83.22 94.6 0.0625 0.626 7.75
Table 17-4 shows that the recoveries of metal to be quite similar between each
blend of feed materials; however, there appeared to be a significant reduction in
cyanide usage when the feed is agglomerated in the presence of cement. The lime
usage was also seen to be lower in the presence of cement, but this may be due
to the alkaline nature of the cement itself. The percolation rate through the two
columns was seen to be reasonable with no increase shown as a result of
agglomeration techniques. No pooling was seen on the top of the columns
throughout the test program.
It can be concluded that the blends of Diana and Cayhua materials appear to be
suitable for gold and silver extraction using conventional leach pad processing.
18 Project Infrastructure
It has a camp called Campamento Nuevo to accommodate approximately 110
employees of MIRLSA, built to the east of the facilities of the plant. Existing
facilities include offices, warehouse, dining rooms and a recreation room, among
others.
In addition to a camp called Campamento Antiguo to accommodate

approximately 260 workers between workers and employees of MIRLSA, it also
houses approximately 90 workers from contractors. Existing facilities include
offices, Medical Center and a recreation room, among others.

141
The main mine-related infrastructures include the waste landfill, transport roads,
the mining contractor's workshop and related infrastructure, the fuel storage
facility and explosives.
19 Market Studies and Contracts

Corihuarmi has contracts for the provision of its Gold Ingots, these contracts
were not reviewed by Andean CG.
The gold produced from Corihuarmi is traded on various metals exchanges. Metal
prices were based July 19, 2016 BMO Capital Markets Street Consensus
Commodity prices. The provided price curve has good adherence with current
spot prices and general consensus of market forecasters. The metal price
assumptions are presented in the Table 19-1.
Table 19-1: Gold price for next year
Au
Year
(US$/oz.)
2016 1,251.00
2017 1,300.00
2018 1,293.00
2019 1,300.00
2020 1,300.00
2021 1,300.00
Source: BMO Capital Markets Street Consensus Commodity prices
20 Environmental Studies, Permitting and Social or Community Impact

The operations of the Corihuarmi Mine began in 2008; a previous Environmental
Impact Study, Mine Closure Plan and Mining Plan was approved by the Mining
Authority (Ministry of Energy and Mines). Operation according to Supreme
Decree No. 040-2014-EM is followed, guaranteeing the generation of work and
employment, promoting the important social role of mining.

142
21 Capital and Operating Costs
21.1 Capital Costs
Mine development is related to any production development that is capitalized.
Most of the production development costs are included in the mining operating
cost.
21.2 Operating Costs

The basis of the operating cost estimate is a first principles approach based on
site specific data. Corihuarmi technical team provided AndeanCG with their cost
estimate on a yearly basis for the projected life of mine. The costs were broken
down into three main areas, as follows:
• Mining;
• Processing; and
• Administration.
Table 21-1: Summary of operating costs by year
CORIHUARMI COSTS PIT's

2017 2018 2019 2020 TOTAL
MINE AND PROCESSING COST ($/tn)
Unit Costs
Administrative cost 1.39 1.39 1.39 1.39 1.39
Mine cost 3.14 3.14 3.14 3.14 3.14
Plant cost 1.44 1.44 1.44 1.44 1.44
Total Mine and Processing Cost (a) $/tn 5.97 5.97 5.97 5.97 5.97
22 Economic Analysis
A technical economic model was prepared by AndeanCG to evaluate the Project.
This model is based on annual production assumptions and the market
conditions, cost estimates, sales deductions and costs and royalties and taxes
provided by Corihuarmi technical team. This section discloses these assumptions
and comments on the profitability of the Reserve. The economic model was
prepared under the assumption of 100% equity. Currency is in U.S. dollars (US$),
unless otherwise stated.

143
22.1 Assumptions External to Project
This valuation is based on metal prices which were reviewed by Andean CG.
Corihuarmi currently has contracts for the provision of its product; however,
Andean CG did not review the details of existing contracts. The provided price
curve has good adherence with current spot prices and general consensus of
market forecasters. The metal price assumptions are presented in Table 22-1.
Table 22-1: Gold price for next year
Au
Year
(US$/oz.)
2016 1,251.00
2017 1,300.00
2018 1,293.00
2019 1,300.00
2020 1,300.00
2021 1,300.00
Source: BMO Capital Markets Street Consensus Commodity prices
22.2 Commercial Assumptions

Corihuarmi Mine is based mainly on the production of gold bullion, being an open
pit operation that has developed with total normality for several years. The
valuation was prepared using gold bullion sales proceeds and revenue generated
by the Corihuarmi operation.
22.3 Taxes Depreciation and Royalties

Corihuarmi mine makes royalties as well as taxes, the total costs are
denominated as total cost sales; a summary can be found in the table 22-2.
Table 22-2: Total Cost Sales and Maquila
SALES COST $ /Oz Au 2017* (A-D) 2018 2019 2020 TOTAL
Royalties to Minandex 36.08 36.08 36.08 36.08 36.08

Government Royalties 12.03 12.03 12.03 12.03 12.03
Dore transportation and sales costs 6.6 6.6 6.6 6.6 6.6
Total Cost Sales & Maquila $/Oz 54.71 54.71 54.71 54.71 54.71

144
22.4 Production Assumptions
The LOM mine production schedule estimates that the mine will produce about
15,663,781 total tonnes (ore and waste). The details are included in the table 22-
3.
Table 22-3: Summary of production by Year
Grade (g/t) Ounces Oz

Year TM Ore TM Waste Total TM SR
Au (Oz) Recovered
2017* 2,230,325 0.308 22,057.56 1,386,074 3,616,399 0.621 17,646.05
2018 2,900,000 0.295 27,536.29 1,161,693 4,061,693 0.401 22,029.03
2019 2,900,000 0.269 25,048.66 1,392,147 4,292,147 0.48 20,038.93
2020 2,898,945 0.261 24,285.88 794,597 3,693,542 0.274 19,428.71
TOTAL 10,929,270 0.283 98,928.40 4,734,511 15,663,781 0.444 79,142.72
22.5 Analysis Conclusions

Corihuarmi Mine is based mainly on the production of gold bullion, the Reserve
stated in this report support a profitable operation under the cost and market
assumptions discussed in this report.
23 Adjacent Properties
Andean CG is not aware of any adjacent properties to the Corihuarmi Mine as
defined under NI 43-101.
24 Other Data and Relevant and Information

AndeanCG knows of no other relevant data at this time.
25 Interpretation and Conclusions

The Corihuarmi Mine, located in the central Andes of the department of Junín
and Lima, consists of a scattered gold deposit classified as High Sulphidation
Epithermal, whose open-pit exploitation allows Minera IRLSA (MIRL) to extract
gold and silver (Au-Ag) by "Heap Leach" (HL) and recover the precious metals in
"carbon in column" (CIC) to obtain a "dore".
Andean CG as an independent consulting firm, has prepared this document in

response to the request made by MIRL to carry out the report of the Evaluation
of the Mineral Resource (measured and indicated) and Reserves (Proven and

145
Probable) 2017 estimate of the Corihuarmi Mining Unit, conducted by MIRL in
March 2017. In this sense, Andean CG after the study, concludes that; The
Mineral Resource estimate detailed in this report complies with Canadian
National Instrument 43-101 international standards and that the Corihuarmi
contains sufficient Mineral Reserve to justify and allow MIRL to continue the
exploration of the demarcated Reserves of the deposit until December 2020.
The control systems and procedures established by MIRL in the determination of

the Mineral Reserve follows established standard practices. The information
processed with MineSight supports the required information that allows planning
a consistent mining operation.
Andean CG has verified the fulfillment of the various suggestions that have been
established in previous processes of assessment of Reserve estimation, the recent
one being prepared by Anglo Peruana Terra SA, for which this report refers to
several notes and comments of said report. This report proposes common
measures in the process of continuous improvement in the estimation of the
Mineral Resource (Measured and Indicated).
The continuity of the mining plan until December 2020 is based on the procedure
of Adjustment of Operations that according to Supreme Decree No. 040-2014-EM
is followed, guaranteeing the generation of work and employment promoting the
important social role of mining.
26 Recommendations
The geological environment of Corihuarmi Mine presents favorable conditions for
an intensive exploration with ample possibilities of locating a copper porphyry in
the area. There is a discovery of an important Copper -Molybdenum porphyry in
Yauricocha, it is recommended to have a view of Medium and long term in this
mining strip promoting the explorations with the purpose of promoting the
validity of the operations of Minera IRL SA in the area, maintaining the
employment and social development of the environment.

146
27 References
Corihuarmi Gold Project National Instrument 43-101 Technical Report, Coffey
Mining Pty Ltd. 6th April 2010
Validation Report of Estimate of Resources 2014, Anglo Peruana Terra S.A. - July
2015.
Environmental Impact Studies (EIA), Mine Closure Plan (PCM) and Mining /
Start-up Plan, approved by the Mining and Mining Authority IRL S.A.
Operation Adjustment Plan of the Corihuarmi Mining Unit, CGT Company SAC -
March and July 2015.
Geological Studies, Corihuarmi Mining Unit, Minera IRL S.A.
Report of reserves inventory and mining plan 2015, Corihuarmi Mine Unit, –
January, 2016.
Feasibility Study of the Mining Plan under production to December 2020 (Based
in mineral resources and mineral reserves to April 2017), which was developed
by multidisciplinary personal (metallurgical engineer, mine engineer and
geological engineer) and headed by Andres Rivera who is the QP.

147
28 Data and Signature Page
CERTIFICATE OF QUALIFIED PERSON
I, Andres M. Rivera, MAusIMM (CP) do hereby certify that:
1. I am Senior Consultant and Project Manager for The Andean Consulting Group (Av. Javier Prado 4403 -
Surco).
2. This certificate applies to the technical report titled “NI 43-101 Technical Report on Resources and Reserves,
Corihuarmi Mine, Yauyos Province, Peru” with an Effective Date of September 30th, 2017 (the “Technical
Report”).
3. I graduated with a geologist engineer from San Agustín University, Arequipa- Perú in 1970 and post-
graduated in Ecole de Geologie, Nancy- France, 1980. In addition I am a registered Member and Chartered
Professional (Geology) of the Australian Institute of mining and Metallurgy. I have more than 45 years of
experience including one year as General Manager, mine operations and processing plant of gold. This has
involved working in Perú, Chile and Ecuador. My experience in technical reports and geological interpretation
come since 2010 by stock exchange of Hong Kong and China. By the stock exchange of Canada this the first
time.
4. I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify
that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past
relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101.
5. I visited the Corihuarmi property on February 6, 2016 for 2 days.
6. I am a head and responsible for the preparation of National Instrument of Technical Report, of Corihuarmi,
by Minera IRL, dated effective September 30th, 2017.
7. I am independent of the issuer applying all of the tests in section 1.5 of NI 43-101.
8. I have not had any prior involvement with the property that is subject of the technical report.
9. I have read NI 43-101 and Form 43-101F1 and the sections of the Technical Report I am responsible for have
been prepared in compliance with that instrument and form.
10. As of the aforementioned Effective Date, to the best of my knowledge, information and belief, the sections of
the Technical Report I am responsible for contains all scientific and technical information that is required to be
disclosed to make the Technical Report not misleading.
Dated this 24th Day of October, 2017
Andrés M. Rivera, MAusIMM- CP

Project Manager/ Senior Geologis

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Amended National Instrument

43-101 Technical Report

Prepared by The Andean Consulting Group SAC for:

Mineral IRL S.A.

Effective Date: September 30th, 2017

Engr. Andres M. Rivera Zeballos

Author of Technical Report / Qualified Person:

Effective Date: September 30th, 2017

Project Number: NI_TR_MIRL_1710_VF

Version / Status: Final

Copies: Minera IRL S.A. (2)

Document prepared, review and Sign Off

Supervising and Author

NI_TR_MIRL_VF Minera IRL S.A. Status

British Columbia Securities Commission

CONSENT OF QUALIFIED PERSON

Consent of Qualified Person

Dated this: 30th September 2017

NI_TR_MIRL_VF Minera IRL S.A. Status

NI_TR_MIRL_VF Minera IRL S.A. Status

NI_TR_MIRL_VF Minera IRL S.A. Status

Table 1-1: Access to the Corihuarmi Mine ....................................................... 13

NI_TR_MIRL_VF Minera IRL S.A. Status

NI_TR_MIRL_VF Minera IRL S.A. Status

NI_TR_MIRL_VF Minera IRL S.A. Status

Figure 4-1: Location of the Corihuarmi Mine ................................................... 24

NI_TR_MIRL_VF Minera IRL S.A. Status

NI_TR_MIRL_VF Minera IRL S.A. Status

NI_TR_MIRL_VF Minera IRL S.A. Status

NI_TR_MIRL_VF Minera IRL S.A. Status

 Lima - Huancayo - Vista Alegre – Corihuarmi Mine, covering approximately

Table 1-1: Access to the Corihuarmi Mine

Lima – Huancayo – Vista Alegre – Corihuarmi Mine

ROUTE VÍA Distance Hours

1.3 Mining Property

NI_TR_MIRL_VF Minera IRL S.A. Status

NAME Area REGION PROVINCE DISTRICT

TUPE 3 600 JUNIN / LIMA HUANCAYO / CHONGOS ALTO /

VERA I 800 JUNIN / LIMA HUANCAYO / CHONGOS ALTO /

VERA III 500 JUNIN / LIMA HUANCAYO / CHONGOS ALTO /

TAMBO NUEVO 11 400 JUNIN HUANCAYO CHONGOS ALTO

CORIHUARMI 127.5 JUNIN / LIMA HUANCAYO / CHONGOS ALTO /

1.4 Geology and Mineralization

The geology and geochemistry in Corihuarmi Mine shows a great similarity to

NI_TR_MIRL_VF Minera IRL S.A. Status

1.5 Mineral Resource and Mineral Reserve Estimation

Table 1-3: Summary of gold Mineral Resource Measured

SUSAN 0.09 3,767,216 0.22 26,343

TOTAL 0.09 18,854,262 0.25 152,343

NI_TR_MIRL_VF Minera IRL S.A. Status

SUSAN 0.09 654,532 0.21 4,455

TOTAL 0.09 3,908,143 0.21 26,684

Mineral Resource (Measured + Indicated)

Cut Off Au Grade

The Mineral Reserve estimate is in accordance with NI 43-101 and CIM

NI_TR_MIRL_VF Minera IRL S.A. Status

Proven 9,918,907 0.286 91,244.41

Table 1-5: Summary of gold Mineral Reserve (Proven and Probable)