Inmaculada

1 Summary
Ausenco Peru S.A.C (Ausenco) was contacted by International Minerals Corporation (IMZ) to
assist in the production of a technical report summarizing the Feasibility Study (FS) that was
completed by Ausenco on the Inmaculada project on behalf of Minera Suyamarca S.A.C
(Suyamarca). IMZ announced on 12 October 2010 that it had signed a framework agreement
with Hochschild Mining plc (Hochschild) where by Hochschild would hold a 60% interest (IMZ
40%) and become the operator of the Inmaculada Property. Ausenco was responsible for the
overall management of the FS, as well as the design and cost estimation of the process plant
and project infrastructure.
The purpose of this report is to provide an independent, National Instrument (NI) 43-101
compliant, technical report on the feasibility study, as well as an updated resource estimate on
the Angela Vein deposit located on the Inmaculada property in the provinces of Parinacochas
and Paucar de Sara Sara, Department of Ayacucho, Southern Peru (the “Property”).
The Angela Vein is a free milling, non-refractory gold/silver deposit with a mineral reserve of 7.8
million (M) metric tonnes (including allowance for mining dilution and ore loss) with grades of
3.37 grams per metric tonne (g/t) Au and 120.2 g/t Ag, corresponding to 0.84 M ounces (oz) Au
and 30.14 Moz Ag. The objective of the project is to mine and process this deposit at a rate of
1.27 Mt/y. The expected life of processing operations from commencement of ramp-up is
approximately 7 years. During this time, a total of 0.78 Moz of Au and 26.5 Moz of Ag will be
produced.
The Feasibility Study (FS) determined that the project is economically viable and generates a
non-discounted pre-tax net present value (NPV) of $323 million, and at a 5% discount rate, and
a pre-tax NPV of $181 million. The pre-tax internal rate of return (IRR) is 18% and the payback
peri d is 4.3 years. This analysis was completed u ing only the proven and probable mineral
reserves with gold and silver prices of $1,100 and $18 per troy ounce respectively.
All currency amounts are expressed in United States dollars ($).
1.1 Resources and Reserves Estimate
At a revenue cutoff of $48.30 /t, the veins in the Quellopata area of the Property are estimated
to have Measured and Indicated Resources of 7.07 Mt, with grades of 4.07 g/t Au and
144 g/t Ag, with an in situ metal content of 0.93 Moz Au and 32.79 Moz Ag. In addition, there
are estimated to be 4.94 Mt of Inferred Resources, with grades of 3.91 g/t Au and 152 g/t Ag,
with an in situ metal content of 0.62 Moz Au and 24.17 Moz Ag. These mineral resources were
estimated using ordinary kriging within wireframes that define the geometry of eight veins,
splays and branches.
These Mineral Resource Estimates have an effectiv date of 11 January 2012, and use all drill
hole data available as of June 2011. A total of 326 core drill holes with a total length of
approximately 102,867 m were drilled.
The mineral reserve estimation only considered the Angela Vein (not the minor splays and
branches) and was based on the resource block model, mining method selected,
geomechanical recommendations and potential stope sizes which assisted in the definition of
the Mining Units (MU) to which dilution and ore loss was applied.
Measured and i dicated resources were used as input for the respective conversion to proven
and probable reserves, while the material corresponding to inferred resources was considered
waste.
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Total Inmaculada project reserves were estimated at 7.8 Mt of ore, with grades of 3.37 g/t Au
and 120.2 g/t Ag, corresponding to 0.84 Moz Au and 30.14 Moz Ag. The reason for the mineral
reserve tonnage being higher than the resource tonnage is due to the dilution expected during
the mining of the vein, and not due to inclusion of any inferred resources.
1.2 Mine Geomechanical Conditions
Evaluation of th stability of rock excavations was developed using empirical and deterministic
met odologies including;
 Maximum dimension for excavations and self-support time based on the rock quality
 classification Rock Mass Rating (RMR) of the hangingwall (HW) and footwall (FW) and
the vein;

 Stability graph method to establish the hydraulic ratio; and
 2D finite element stress-strain analysis for the excavations using Phase 2 software.
The mean RMR obtained from the geomechanical model indicated moderate to poor rock
conditions. For the hanging and foot walls, the maximum unsupported excavation is 4 m with a
self-supporting time of 2 days, while for the vein zones the expectation is 2.7 m of unsupported
excavation for 7.2 hours. These conditions require immediate support in the vein zones after
blasting activities. Accordingly adequate support specifications and stope sizes were defined, as
well as sufficient backfill rate capacity.
1.3 Mining
The main design elements considered in the selection of mining method and ultimately the mine
design were:
 Ore and host rock geomechanical characteristics;

 Dip and thickness of the Angela Vein;
 The production and productivity requirements of each mining method; and
 Ore dilution.
The geomechanical results indicated poor rock conditions in areas of the Angela Vein. As a
result a conservative approach was taken to the mining method selected, as well as the stope
size and sequencing. The sub level stoping mining method was applied in the central part of the
vein (larger vein width) with a stope height of 5 m. The cut and fill method was applied in the
north and south areas of the vein with stope heights of 4.5 m.
Based on geomechanical rock conditions and orebody geometry the sub level stoping zones
were developed with sub levels of 9m vertical intervals to limit hangingwall exposure, drill hole
deviation and dilution. In the cut and fill areas the accesses to the vein will be developed at 12.5
m vertical intervals. Both methods will use cemented backfill. The 2 km long vein ha good
continuity and sufficient height to allow a number of simultaneous mining sections to ensure a
production of 3,506 t/d.
1.4 Processing and Metallurgy
A testwork program was developed by Ausenco for the Angela Vein deposit and representative
samples were collected with the specific objective of verifying the technical feasibility and
providing data for the preparation of the FS. The metallurgical t stwork was completed at ALS
Ammtec (Ammtec) in Perth, Australia.
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Findings from the testwork indicated that the ore is moderately competent for semi-autogenous
(SAG) milling, moderately hard and moderately abrasive. Gold and silver can be recovered from
the ore using conventional cyanide leaching techniques with an optimum grind size of P80 50
micron, 96 hours leaching and 1,500 mg/L sodium cyanide concentration.
The testwork included cyanidation leaching of bulk (20 kg) samples at the optimum conditions
identified through the course of the program. The gold and silver extractions in these tests are
summarized in
Table 1.1.
Table 1.1 - Bulk Cyanidation Testwork Results
Consumption
% Au Au Leach % Ag Ag Leach
Composite Test (kg/t)
Extraction R esidue Extraction R esidue
Identity No
96 Hours (g/t) 96 Hours (g/t) Lime NaCN
Domain
HS25805 97.5 0.11 92.6 8.2 0.64 1.08
Comp #1
Domain
HS25806 97.6 0.09 93.9 8.0 0.59 1.05
Comp #2
Domain
HS25807 97.5 0.15 90.4 22 0.67 1.56
Comp #3
Gold and silver recoveries of 95.6% and 90.6% respectively were used for mineral reserve
calculations and include reductions to accommodate scale-up and solution losses.
The testwork indicated that the leached slurry could be thickened to allow solid-liquid separation
for recovery of precious metals through a conventional Merrill Crowe processing plant. Testwork
also indicated that cyanide could be detoxified using the INCO SO 2/Air process prior to the
tailings being discharged to the tailings storage facility (TSF), or filtered and used for paste
backfill in the underground mine.
The unit operations used to model the plant throughput and metallurgical performance are well
proven in the gold and silver processing industry. The overall approach was to provide a robust
process plant flowsheet that could handle the variability in the metallurgical performance of the
ores tested. The flowsheet incorporates the following major process operations:
 Primary crushing direct feeding the milling circuit via a stockpile;

 SAG mill grinding;
 Ball mill grinding;
 Leaching;
 Counter-current decant solution washing;
 Pregnant solution clarification and precious metal recovery by zinc precipitation;
 Refinery incorporating mercury retort and smelting facilities;
 Tailings detoxification, thickening and disposal;
 Thickened tailings filtration and paste backfill;
 Fresh and reclaim water supply; and
 Reagent preparation and distribution.
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The process design criteria were developed from the testwork program and from benchmarked
data for similar operations. The key criteria selected for the plant design are:
 An average throughput of 3,506 t/d for 365 days per year;

 Design availability of 91.3%, equivalent to 7,998 operating hours per year, with standby
equipment in critical areas, and
 Sufficient plant design flexibility for treatment of all zones, at design throughput, within the
Angela Vein as per testwork completed.
1.5 Capital Cost
Table 1.2 provides a summary of the overall capital costs estimated for the Inmaculada project
starting on 1 January 2012 until ramp-up is complet d and full scale production commences in
Q1 2014. The costs are expressed in October 2011 United States dollars ($). There is no
allowance for escalation. The estimated costs include all mining, site preparation, process plant,
first fills, buildings, road works and permanent accommodation camp. The estimates are
considered to have an overall accuracy of ±15% and assume the project will be developed on
an Engineering, Procurement and Construction Management (EPCM) basis.
Table 1.2 - Overall Project Capital Costs by Area
Total Cost
Description
($M)
Process Plant 88.9
Process Plant Infrastructure 12.0
High Voltage Power Supply 13.5
Mine 69.6
Non Process Plant Infrastructure 36.6
Temporary Facilities 11.5

Indirects 35.1
Owners Costs 23.3
Contingency 24.9
Grand Total 315
1.6 Operating Cost
The operating cost estimate was developed on an annual process plant throughput basis of
1.28 Mt per year. The costs were divided into the key cost centers and all costs are as of the 4 th
quarter of 2011 (calendar year). The overall operating costs are shown in Table 1.3.
Table 1.3 - Unit Operating Cost Summary (based on 3,506 t/d milled)
Parameter Unit Value
Underground mine
$/t ore milled
- Cut and Fill: 44.5
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Parameter Unit Value
- Sub Level Stoping: 32.2
- Average: 39.1
Processing $/t ore milled 25.1
General and Administrative $/t ore milled 8.70
TOTAL $/t ore milled 72.9
1.7 Economic Analysis
Two economic analysis cases have been provided in this report. The “overall project economic
analysis” indicates the parameters of the overall project. The “IMZ specific analysis” provides
the economic parameters of the project specific to IMZ based on the IMZ – Hochschild terms of
agreement as outlined in Se tion 4.2.
The overall project base case analysis resulted in a non-discounted net present value (NPV) of
$32 million before tax and $194 million after tax. With a 5% discount applied the NPV before
tax was $181 million and $90 million after tax. The overall project pre-tax payback period is 4.3
years with an IRR of 18%.
The sensitivity analysis indicated that the project is most sensitive to feed grade and metal price
as shown in Table 1.4.
Table 1.4 - Overall Project Economic Sensitivity Summary
Pre-tax NPV5% (M$)

Case Variable
-10% 0% +10%
Variance Variance Variance
Capital Cost 217 181 144
Case 1 (base Operating Cost 224 181 137

case)
Metal Price or
82 181 280
Feed Grade
Table 1.5 belo indicates IMZ’s attributable production and economic parameters for the
Inm culada project based on the terms of the joint venture agreement.
Table 1.5 - IMZ’s Attributable Production and Economic Parameters
Item Units
Average annual gold production ounces/year 49,600
Average annual silver production ounces/year 1,682,000
Average annual gold equiv. pro uction 2 ounces/year 78,000
Life-of-mine gold production ounces 313,000
Life-of-mine silver production ounces 10,600,000
Life-of-mine gold equiv. production2 ounces 488,000
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Item Units
Initial capital millions 91
1
Direct site costs $ per tonne processed 74
Direct site costs1,3 $ per ounce Au (with Ag credit) 133
Total cash operating costs1,3,4 $ per ounce Au (with Ag credit) 262
IRR Pre-tax/post-tax % 26 / 21
Pre-tax /post-tax cash flow (non-discounted) millions 136 / 95
Pre-tax/post-tax NPV, 5% discount rate millions 85 / 57
Pre-tax/post-tax NPV, 8% discount rate millions 63 / 40
1) Direct site costs include mining, processing and mine administration. Total cash operating costs include direct site costs
plus estimates of the management fee, refining charges and government royalty (but do not include workers profit
sharing which is 8% of net income).
2) Gold equivalents are estimated using a silver-to-gold ratio of 60:1 calculated by using the ratio of the base case metal
prices.
3) By-product accounting subtracts the revenue generated by silver from the total operating costs to determine the cost per
ounce of gold.
4) For comparative purposes, if IMZ had selected co-product accounting, the resulting cash operating costs would be
$560/oz of gold and $9.15/oz of silver.
1.8 Project Implementation Plan
Project construction is expected to take 15 months due to climatic conditions (seasonal snow
and ice) and the reduced productivity at 4,800 meters above sea level (masl).
The following critical key dates and milestones have been identified for the project. They are
subject to receipt of environmental approvals, financing, award of contracts and meteorological
conditions. Delays in meeting these t rget dates would likely result in a delay in project
completion. At the time of this report basic engineering on the process plant was essentially
completed, with recommendations made for purchase of all long lead items.
Commence placement of orders for long lead items………………………………….February 2012
Commencement civil works….………………………………………………………………...May 2012
Complete detailed engineering………………………………………………………....December 2012
Commence mechanical installation..………………………………………………….........March 2013
Complete civil works………………………………………………………………………….…May 2013
Commence commissioning…………………………………………………………..…November 2013
Production……………………………………………………………………………..….December 2013
1.9 Conclusions and Recommendations
The following are the key conclusions of this report:
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 The Inmaculada deposit is extensively drilled and geologically well understood. The data
set is robust and reliable. Development of the orebody, particularly within the measured
region of the resource is now recommended to validate the resource model and to test
mining assumptions.
 Mine geomechanical investigations indicated that the rock conditions and quality in the
hanging and foot walls are classified as poor to fair, with the improved rock quality areas
in the central zones.
 The mine design and support was based on the geomechanical model for the hanging
and foot walls. This in ludes immediate support in the vein zones after blasting activities.
 The mine design utilizes sub level stoping in the central part of the vein (larger vein width)
with a stope height of 5 m and cut and fill method was applied in the north and south
areas of the vein with stope heights of 4.5 m.
 Results of the metallurgical testwork conclude that processing the Angela Vein Zone ore
types can be successfully achieved using industry standard crushing, grinding and
cyanide leaching technology.
 The process plant flowsheet and unit operations used to model the plant throughput and
metallurgical performance are well proven in the gold and silver processing industry.
 There is sufficient capacity in the tailings storage facility (TSF) for 7.8 Mt of tailings. A
tailings filtration and paste backfill plant will deliver cemented paste backfill to the
underground mine, and hence reduce the overall TSF volume requirements for the life of
mine.
 Surface water will be utilized to provide the raw water requirements with any excess
water being discharged under controlled conditions to surrounding areas.
The following are the key recommendations of this report:
 The project advance to detailed engineering, procurement and construction.

 Complete detailed mapping and sampling of level development and construction of grade
control models.
 Closer spaced drilling from a footwall position to determine if development of any parallel
veins is warranted.
 Additional density measurements are required to establish whether or not there is a
density-grade relation hip, and to establish appropriate densities to be used in the splays,
branches and minor veins.
 Design of the stope dimensions should be regarded as a first step in the design process
and local adjustments to the design should be expected, depending upon actual
conditions observed in the stopes.
 Once backfill properties are known, numerical modeling should be completed to assess
the support effectiveness of the fill, as well as to assess if sill or rib pillars should be left
for overall mine stability.
 Process plant layout and equipment sizing optimization was identified as required during
the FS and subsequently completed during Basic Engineering. This was based on the
latest testwork information that became available in the latter stages of the FS.
 A more specific process plant site geotechnical investigation program is recommended
for detailed design of the structures foundations, particularly for heavy loads such as the
grinding mills.
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 Investigations should include the possibility to remove the raw water dam from the design
given the high amount of water inflow to the mine and subsequent possible use within the
processing plant.
 Further detailed testwork and modeling should be completed on the expected mine
discharge water quality to determine if it meets the regulatory requirements for discharge
to the environment.
 Complete an overall detailed project risk assessment in detailed engineering.
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2 Introduction and Terms of Reference
Ausenco was contracted by IMZ to assist in the production of a Technical Report on the
Feasibility Study on the Inmaculada project property in Peru. The gold/silver deposit targeted for
mining is the Angela Vein located in the provinces of Parinacochas and Paucar de Sara Sara,
Department of Ayacucho, southern Peru (the “Property”).
This report considers a mine that will produce 1.28 Mt/y of gold/silver bearing ore for processing
through a conventional cyanide leaching process plant.
This technical report was written by the independent Qualified Persons (QPs) shown in Table
2.1. Personal visits to the Project site were conducted by Ian Dreyer on 20 July 2011 and Angel
Mondragon on 15 March 2011.
Table 2.1 - Qualified Persons and Areas of Responsibility
Name of Qu alified
Area of Responsibility
Person
1, 2, 3, 4, 5, 6, 13, 17, 18, 19, 21.1.1, 21.1.2, 21.1.4, 21.1.5, 21.2.1,
Clinton Donkin 21.2.2, 21.3, 21.5, 21.6, 22, 23, 24, 25.2, 25.4, 25.5, 26.3, 26.4, 26.5,
26.7, 27, 2 , 29
Ian Dreyer 7,8,9,10,11,12, 5.1, 26.1
Angel Mondragon 15,1 , 21.1.3, 21.4, 25.3, 26.2
Tony Sanford 20, 26.
Mohan Srivastava 14
Each QP in this report takes sole responsibility for their work as outlined in their QP Certificates
reporting in Section 29.
Any previous technical reports or literature used in the compilati n of this report are referenced
in References (Section 27).
All units in this report are based on the International System of Units (SI), except industry
standard units, such as troy ounces for the mass of precious metals. All currency values are in
United States Dollars ($) unless otherwise stated. The project operating and capital costs were
developed to an accuracy of ±15%.
This report uses abbreviations and acronyms common within the minerals industry. Table 2.2
identifies several important terms and abbreviations used in this report.
Table 2.2 - Abbreviations and Symbols
Term Abbreviation or Symbol

average ave
day d
degree Celsius °C
degree Fahrenheit °F
diameter dia
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foot ft
gram g
grams per liter g/L
grams per metric tonne g/t
hectare ha
hour h
inside diameter ID
kilogram kg
kilometer km
kiloPascal kPa
kilowatthour kWh
life of mine LOM
liter L
maximum max
megaPascal MPa
meter m
meter per second m/s
meters above sea level masl
meter per second squared m/s2
metric tonnes t
metric tonnes per day t/d
metric tonnes per hour t/h
micron µm
miles per hour mph
Million tonnes per year Mt/y
kilometers per hour km/h
minimum min
minute min
mole percent mol %
molecular mass (weight) mol wt
parts per billion ppb
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parts per million ppm
pounds lb
rock mass rating RMR
run of mine ROM
semi-autogenous grinding SAG
second s
specific gravity SG
square meter m2
troy ounces oz
unconfined compressive strength UCS
volume by volume v/v
weight (mass) wt
weight (mass) percent % w/w
weight by mass w/w
weight by volume w/v
year y
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3 Reliance on Other Experts
Preparation of this report is based upon public and private information provided by IMZ and
information provided in various previous Technical Reports listed in Section 27 of this report.
The authors believe that the information provided and relied upon for preparation of this report
is accurate at the time of the report and that the interpretations and opinions expressed in them
are reasonable and based on current understanding of mining and processing techniques and
costs, economics, mineralization processes and the host geologic setting. The authors have
made reasonable efforts to verify the accuracy of the data relied on in this report.
The results and opinions expressed in this report are conditional upon the aforementioned
information being current, accurate, and complete as of the date of this report, and the
und rstanding t at no information has been withheld that would affect the conclusions made
herein the authors reserve the right, but will not be obliged, to revise this report and conclusions
if additional information becomes known to the authors subsequent to the date of this rep rt.
The authors of this technical report are not qualified to provide extensive comment on legal
issues associated with the Project. As such, portions of Section 4 dealing with the types and
numbers of mineral tenures and licenses, the nature and extent of IMZ’s title and interes in the
Project, the terms of any royalties, back-in rights, payments or other agreements and
encumbrances to which the Project is subject are descriptive in nature and are provided
exclusive of a legal opinion.
Carlos Huaman of Ausenco Peru S.A.C was relied upon as a non-QP expert for review of the
mine geomechanical sections of this report (Sections 1.2, 24.1, 25.2 and 26.2). He provided
overall management and review of the mine geomechanical component of the Feasibility Study.
He holds a master’s degree in civil engineering specializing in geotechnical engineering and has
20 years of geotechnical engineering experience, with 10 years specific to rock mechanics.
Ausenco has also relied extensively on the accounting team from Hochschild and IMZ for the
financial modeling and analysis discussed in Section 22. The taxation and depreciation
information and calculations were provided to Ausenco and believed to be correct and in
accordance with Peruvian laws and International Financial Reporting Standards (IFRS).
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4 Property Description and Location
The Inmaculada Property is located in southern Per within the provinces of Parinacochas and
Paucar de Sara Sara in the Ayacucho Department situated at latitude 14°57'27"S and longitude
73°14'42"W (Figure 4.1). The Property is situated approximately 210 km southwest of the town
of Cusco and 530 km southeast of Lima, the capital of Peru with elevations ranging between
3,900 and 4,800 masl in the Puquio-Caylloma Belt. The Property is located within the UTM
coordinates in Table 4.1.
Table 4.1 - Inmaculada Property UTM Coordinates
Easting Northing
677000 8358000
702000 8358000
677000 8341000
702000 8341000
Figure 4.1 - Location Map for the Inmaculada Property
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4.1 Permits
Four drilling permits have been acquired by IMZ or its predecessor Ventura Gold Corp (Ventura)
duri g its tenure as operator of the Inmaculada joint venture project. These include:
 2007: Declaración Jurada Proyecto Inmaculada. Permit to drill using 5 platforms;

 2008: Evaluación Ambiental Proyecto Inmaculada Categoría C. Permit to drill using 15
 platforms;
 2008: Estudio de Impacto Ambiental Semidetallado Categoría II Proyecto Inmaculada.
 Permit to drill using 67 platforms. Expired November 2009;
 2010: Segunda Modificatoria del Estudio de Impacto Ambiental Semidetallado Categoría
II Proyecto Inmaculada. Permit to drill 79 platforms to expire in August 2012; and
 2011: Tercera Modificatoria del Estudio de Im acto Ambiental Semidetallado Categoria II
Proyecto Inmaculada. Permit to drill using 39 platforms to expire in July 2013.
4.2 Property Ownership and Agreements
Title to the Inmaculada Property is held by Minera Suyamarca S.A.C. (Suyamarca). This
company (also the operator as well of the Hochschild/IMZ Pall ncata mine) is a joint venture
(JV) between IMZ and Hochschild (60% Hochschild and 40% IMZ). Suyamarca acquired Minera
Quellopata S.A.C. the operating company that was established in August 2009 under the terms
of a option and joint venture JV agreement between Ventura and Hochschild.
On 12 January 2010, IMZ acquired the Inmaculada property as part of the closing of a business
transaction to acquire Ventura.
On 23 December 2010, IMZ signed definitive agreement with Hochschild to fast track
production at the Inmacul da project, whereby Hochschild committed to build a mining
operation at Inmaculada with a process capacity of 3,000 tonnes per day (unless the parties
agreed that such capacity was not optimal) by December 2013, subject to any unforeseen
delays under defined “force majeure” conditions. Hochschild will provide 100 of the initial $100
million of funding required to complete a feasibility study and the planning, development and
construction of a mining operation at Inmaculada. Any subsequent expenditures will be funded
60% by Hochschild and 40% by IMZ.
Below are the principal terms of the agreement:
 Hochschild paid to IMZ $15 million in cash on closing of the transaction;

 Hochschild made an equity investment in IMZ of $20 million in the form of a private
placement at a price of CDN$5.525 per share;
 Hochschild will provide 100% of the initial $100 million of funding required for the
planning, development and construction of a mining operation at the Angela Vein deposit
at Inmaculada. Any subsequent expenditures will be funded 60% by Hochschild and 40%
by IMZ;
 IMZ is no longer required to complete a feasibility study at Inmaculada, nor to issue
200,000 common shares to Hochschild;
 Hochschild committed to build a mining operation at the Angela Vein deposit with a
process capacity of 3,000 t/d (unless the parties agree that such capacity was not
optimal) within three years of closing of the transaction, subject to any unforeseen delays
out of the control of Hochschild;
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 If Hochschild fails to achieve the process capacity within the three-year period, then
Hochschild must make quarterly pre-payments to IMZ during the period of any delay
based on the parties’ joint estimate of IMZ’s 40% share of income / cash flows that would
have been generated if production had started on schedule;
 Hochschild will be the operator of the project. Upon commencement of commercial
production, Hochschild will charge the JV company a 7.0% management services fee
based on the aggrega e operating costs incurred by the JV during such mining ope ation;
 The management fee currently charged by Hochschild for the Pallancata Mine was
reduced from 10.0% to 7.0%;
 IMZ and Hochschild contributed to the Inmaculada joint venture their respective
ownerships in the Pacapausa property (80% Hochschild / 20% IMZ), located adjacent to
the Pallancata Mine and the Puquiopata property (100% IMZ), situated on the northern
edge of the Inmaculada Property. These contributions resulted in both properties being
owned 60% by Hochschild and 40% by IMZ; and
 A minimum of 20,000 m of drilling per year for the first three years following the closing of
the transaction must be carried out for evaluation of exploration targets outside of the
main Angela Vein deposit. The drilling program will be funded 60% by Hochschild and
40% by IMZ.
4.3 Property Description and Tenure
The Inmaculada Property consists of 33 mining concessions with a total area of 20 799.46 ha
(Figure 4.2).
The claims are in good standing until 30 June 2012, at which time fees and penalties estimated
at US$224,404 must be paid (Table 4.2). As a result of the exploration expenditures made by
Suyamarca during 2011, most of the “penalties” will not be required to be paid (Table 4.2). All of
the concessions are held 100% by Suyamarca.
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Figure 4.2 - Inmaculada Property Mining Concessions
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Table 4.2 - Inmaculada Mining Concessions
Fees &
Fees
Penalties Penalties
Area Paid
Concession Code Paid 2011 Estimate Owner
(ha) 2011
(US$) d 2012
(US$)
(US$)
CANCALLA 2 10584095 823.3169 $2,469.95 $16,466.34 $18,936.29 Suyamarca
INMACULADA
10193006 999.9983 $2,999.99 $19,999.97 $2,999.99 Suyamarca
20 2006
INMACULADA
010170409 467.6250 $ 1,402.88 NA $1,402.88 Suyamarca
2009-1
INMACULADA
010179609 555.3603 $ 1,666.08 NA $1,666.08 Suyamarca
2009-2
INMACULADA
010218909 363.5240 $ 1,090.57 NA $1,090.57 Suyamarca
2009-3
INMACULADA
010219009 165.6140 $ 496.84 NA $496.84 Suyamarca
2009-4
INMACULADA
010204610 299.9991 NA NA $900.00 Suyamarca
2010-1
INMACULADA
010219910 1,000.0000 NA NA $3,000.00 Suyamarca
2010-2
INMACULADA
010219810 1,000.0000 NA NA $3,000.00 Suyamarca
2010-3
INMACULADA
010292910 900.0000 NA NA $2,700.00 Suyamarca
2010-4
INMACULADA
010141704 300.0000 $900.00 NA $2,700.00 Suyamarca
67
INMACULADA
010039305 177.3728 $532.12 NPPA $532.12 Suyamarca
77
INMACULADA
010127005 250.4765 $751.43 NA $751.43 Suyamarca
78
INMACULADA
010100806 4.7300 $14.19 NA $14.19 Suyamarca
80
INMACULADA
10010705X01 449.9998 $1,350.00 NPPA $10,350.00 Suyamarca
N°13
INMACULADA
10010706X01 449.9998 $1,350.00 NPPA $10,350.00 Suyamarca
N°14
INMACULADA
10010707X01 450.0016 $1,350.00 NPPA $10,350.03 Suyamarca
N°15
INMACULADA
10010854X01 999.9983 $2,999.99 NPPA $22,999.96 Suyamarca
N°18
INMACULADA
10010695X01 1000.0034 $3,000.01 $20,000.07 $23,000.08 Suyamarca
N°3
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Fees &
Fees
Penalties Penalties
Area Paid
Concession Code Paid 2011 Estimate Owner
(ha) 2011
(US$) d 2012
(US$)
(US$)
INMACULADA
10011032X01 1000.0263 $3,000.08 $20,000.53 $23,000.61 Suyamarca
N°30
INMACULADA
10011172X01 400.0001 $1,200.00 $8,000.00 $9,200.00 Suyamarca
N°31
INMACULADA
1011457XX01 976.5025 $2,929.51 NPPA $22,459.56 Suyamarca
N°33
INMACULADA
1011457YX01 373.9997 $1,122.00 NPPA $8,601.99 Suyamarca
N°34
INMACULADA
10010698X01 999.3311 $2,997.99 $19,986.62 $22,984.61 Suyamarca
N°6
INMACULADA
10197205 399.9985 $1,200.00 NA $1,200.00 Suyamarca
Nº 38
MINASCUCH
10035007 999.9981 $2,999.99 NA $2,999.99 Suyamarca
O 2007A
MINASCUCH
10034907 824.8503 $2,474.55 NA $2,474.55 Suyamarca
O 2007B
PUQ UIOPATA
010218505 940.0106 $2,820.03 NA $2,82003 Suyamarca
2005
QUELLOPATA 010004999 162.1163 $486.35 NPPA $3,728.68 Suyamarca
QUELLOPATA
010021908 564.6105 $1,693.83 NA $1,693.83 Suyamarca
2008A
TARARUNQUI
010035207 999.9983 $2,999.99 NA $2,999.99 Suyamarca
2007B
TARARUNQUI
010035107 999.9994 $3,000.00 NA $3,000.00 Suyamarca
2007A
INMACULADA
010314811 500.0000 $1,500.00 NA $0.00 Suyamarca
2011-1
* NPPA – Payment not required as minimum investment reached
4.4 Property Boundaries
The concessions which comprise the Inmaculada Property were first located by Mitsui Mining
Corporation (Mitsui) using the old Peruvian claim-staking system, by which claims were
demarcated by reference to local topographic points. In 1992, Peru adopted a new claim-
staking system using UTM coordinates. At that time, all pre-existing mining concession corner
points were converted to UTM coordinates. No surveys of the Property boundaries have been
performed.
4.5 Peru’s Mining Title Laws
Under Peruvian law, the right to explore for and exploit minerals is granted by way of mining
concessions. A Peruvian mining concession is a property right, independent from the ownership
of land on which it is located. The concession can be defended against possible claim by third
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parties, transferred or sold, leased, mortgaged and may be inherited in families. In general, a
mining concession may be the subject of any transa tion or contract. Government authorization
is not required for this purpose.
According to the relevant mining law (Ley del Catastro Minero Nacional, L y No. 26615), the
basic unit for newly claimed mineral concessions is 100 ha to a maximum of 1,000 ha. The
concession is irrevocable and indefinite as long as its holder fulfills the obligations prescribed by
law to maintain them. There is no limit to the number of concessions that may be held by a
company or individual.
Since the year 2001, the concession holder has had the obligation to pay an annual rent
(derecho de vigencia) of US$3.00 per hectare by June 30 of each year. The annual obligation to
pay concession rights can be postponed for one year but if it is not paid for two consecutive
years then the concession e pires.
According to the General Mining Act (the ‘Mining Act’), which single unified text was approved
by Supreme Decree No. 14-92-EM (Texto Único Ordenado de la Ley General de Minería) the
mining concession holder must sustain a minimum level of annual commercial production of
US$100 per hectare in gross sales within six years of the grant of the concession. If the mining
concession has not been put into production within that period, then the mining concession
holder must make an additional paymen called Penalty (Penalidad) of US$6.00 per hectare for
the 7th through 11th year following the granting of the mining concession and of US$20.00 per
hectare thereafter. The mining concession holder shall be exempted from the Penalty if the
investment made during the previous year was 10 times the Penalty (i.e.US$60 per hectare per
year for 7th through to 11th years). The above mentioned applies for mining concessions granted
before 10 October 2008. Pursuant to the Legislative Decrees No. 1010 and No. 1054, all
concessions granted after such date will be ruled by the following: the mining concession holder
must sustain a minimum level of annual commercial roduction of 1 Unidad I positiva Tributaria
(UIT) per hectare in gross sales within 10 years of the grant of th mining concession (the UIT is
upd ted each year, and its value for 2009 is Peruvian sol (S/.) 3,350, which is approximately
US$1,180). If the mining concession has not been put into production within that period, then
the mining concession holder must pay an additional penalty of 10% of the UIT per hectare for
the 11th through 15th year following the granting of the mining concession and, to avoid the
expiration of the mining concession, a payment of the same penalty per hectare (10% of the
UIT) must be made plus a minimum level of investments (i.e. exploration or development) of 10
times the penalty for the 16th through 20th year following the granting of the mining concession.
Thereafter, if the mining concession holder does not put the mining concession into production
the mining concession will expire. According to the Supreme Resolution No. 054-2008- M the
changes made by the Legislative Decrees above mentioned will be in force for the mining
concessions granted before 10 October 2008.
Peruvian law also states that no payment is required on the portion of overlapping hectares with
another concession.
4.6 Surface Rights
Suyamarca holds a 25-year lease from the community of Huallhua, on 870 ha of land for a
peri d of 25 years effective 25 November 2009.
4.7 Environmental Liabilities

The reader is referred to Section 20 for further information on environment considerations.
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5 Accessibility, Climate, Local Resources, Infrastructure & Physiography
The following section is sourced and summarized from the previous technical report on the
Property by P&E Mining Consults Inc. (2010).
5.1 Accessibility
The total travel time from Lima to the Inmaculada Property is approximately 15.5 hours. The
Property is accessible from Lima by means of the Pan-American highway to Nazca, then as far
as Iscahuaca via the east-bound Nazca-Cusco highway, then by dirt road from Iscahuaca to the
Huanacmarca turn-off and finally via dirt road through the communities of Sauricay and Sorani.
Alternatively, access can be gained by travelling west on the Nazca-Cusco highway from
Cusco, through Urubamba and Chalhuanca, to Iscahuaca and following the same gravel roads
to the Property. The closest hotel to the Property is in Chalhuanca. Travel time by road from
Cusco to Chalhuanca is about 5.5 to 6 hours, with a further hour travel to Iscahuaca. Cusco is
served by several daily jet flights from Lima.
5.2 Climate
The climate in the area is characteristic of high altitude - ‘Puna’ climatic region in the Andes,
with rain and snow between November and April, followed by a dry season between May and
October.
5.3 Local Resources and Infrastructure
Lab rers for the project are readily available from the nearby communities. People from the
local villages have been used for various duties at the project. Peru has an adequate supply of
university educated geologists to manage the exploration program.
The Property is located close to high tension power lines of the Electro Sur del Peru electric
system, which reportedly can supply sufficient power for any mining operation. Hochschild
currently operates several mines in the region.
5.4 Physiography
The Property is located in the ‘Puna’ region of Peru, with elevations on the Property varying
between 3,900 and 4,800 masl. Surface topography is generally moderate in the immediate
vicinity of the Angela Vein to locally very steep in the region. Vegetation is sparse consisting of
grasses (ichu and pajonal).
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6 History
6.1 Introduction
Exploration on the Inmaculada Property commenced in 1990 by Mitsui. The Property was sold
and the concessions were transferred to Hochschild in 1992. Hochschild performed geological
mapping, rock chip and soil sampling, geophysical surveys and core drilling on the Property
between 1998 and 2005. In 2007, Ventura Gold started it’s earn in process by drilling 15,000 m.
IMZ exploration programs subsequent to the acquisition of Ventura Gold on 12 January 2010
are described in Section 9 of this report.
The following section is sourced and summarized from the previous technical report on the
Property by P&E Mining Consultants Inc. (2010).
Exploration on the Inmaculada Property is summarized in Table 6.1.
Table 6.1 - Historical Exploration on the Inmaculada Property, 1990-2009
Year Company Exploration

Nature and extent of work not known. Property sold and
1990 – 1992 Mitsui
concessions transferred to Hochschild.
Hochschild / LAC Hochschild signed a JV agreement with LAC Minerals. No
1994
Minerals work performed.
Hochschild / Compañía Hochschild signed a JV agreement with North. Nature and
1995 North Minera S.A. extent of work not known. Property reverted to Hochschild at
(North) end of first year.
Through Hochschild subsidiaries Minera Ares S.A.C. and
Minera Argento S.R.L. performed the following:
 Regional mapping and sampling (1:25,000)
 Construction of access road from Sauricay
 Geological mapping of Tararunqui, Quellopata,
Minascucho and San Salvador (1:5,000)
 Rock chip sampling at Tararunqui (293 samples),
1998 – 2005 Hochschild Quellopata (1,665 samples), Minascucho – San
Salvador (210 samples).
 Soil sampling (186 samples).
 Geophysical surveys: magnetometer (51.77 line-km),
IP/Resistivity (29.2 line-km) and Gradient IP (21 line-
km) at 3 targets.
 DDH at Tararunqui (11 holes at 1,479.29 m), Quellopata
(31 holes at 7,188.40 m) and Minascucho (2 holes at
440 m)
Core drilling focused on delineating the mineral resource of
2007-2009 Ventura Gold the Angela Vein, completed 99 core drill holes for a total of
25,590m
6.2 Historical Mineral Resource and Reserve Estimates
6.2.1 2009 Mineral Resource Estimates
In January 2009 Ventura announced an initial independent inferred mineral resource estimate of
483,000 contained ounces of gold and 16.6 million contained ounces of silver at the Angela
Vein at the Inmaculada gold-silver project in southern Peru.
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The inferred resource ounces are contained within an estimated 3.7 million tonnes at an
average grade of 4.0 g/t gold and 139 g/t silver. This National Instrument 43‐ 101 compliant
resource estimate is based on approximately 15,000 m of core drilling and assay data obtained
through December 31, 2008 and was calculated by Micon International of Toronto Canada.
6.2.2 2010 Mineral Resource Estimate
In February 2010, IMZ reported an updated mineral resource estimate for the Inmaculada
proj ct comprising the following resources on a 100% Project basis:
 Indicated Resource: 154,000 ounces gold and 4.9 million ounces silver (contained within
 1.2 million tonnes at an average grade of 3.9 g/t gold and 122 g/t silver; and
 Inferred Resource: 512,000 ounces gold and 22.1 million ounces silver (contained within
4.7 million tonnes at an average grade of 3.4 g/t gold and 147 g/t silver.
The Inmaculada mineral resource estimate was classified in accordance with CIM guidelines
by FSS Canada’s R. Mohan Srivastava (P.Geo) and the estimate has an effective date of 3
February 2010. The mineral resource estimate is based on the results of 84 core drill holes
for approximately 25,000 m of drilling, which have defined a strike length to the Angela Vein
mineralization of over 1,500 m (and which is still open to the northeast) and a vertical extent of
over 300 m.
6.2.3 2010 Mineral Resource Estimate and Preliminary Assessment
In September 2010, IMZ announced the results of an independent Preliminary Assessment

(scoping study) and an updated, increased mineral resource estimate for the Angela Vein
dep sit at the Inmaculada project.
Results of the scoping study for the Project indicated that at base case gold and silver prices of
$1,000/oz and $17/oz respectively and a 3,000 t/d throughput, an underground mining project
could return a pre-tax non-discounted cash flow of approximately $660 million based on an
anticipated Scoping study diluted mine production of 8.0 Mt at a grade of 3.8 g/t gold and
137 g/t silver.
The independent scoping study was overseen by P & E Mining Consultants Inc. of Brampton,
Ontario Canada (P&E), with Golder Associates Peru S.A. (Golder) responsible for the tailing
disposal facility and fresh water supply and FSS Canada (FSS) responsible for the updated
resource estimate.
The results of the scoping study are summarized in Table 6.2.
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Table 6.2 - Inmaculada Angela Vein Scoping Study (100% Project Basis, all in US Dollars)
Item Units
Base Case Gold price $ per ounce 1000
Base Case Silver Price $ per ounce 17
Initial Mine life years 7.5
Average annual gold production 6 ounces/year 117,000
Average annual silver production 6 ounces/year 4,000,000
Average annual gold Eq. production Au Eq ounces/year 180,000

6
Life-of-mine gold production ounces 858,000
Life-of-mine silver production 6 ounces 29,300,000
Life-of-mine gold Eq. production Au Eq. ounces 1,346,000
Plant processing rate (~3,000 t/d) tonnes/year 1,095,750
Metallurgical recovery – gold % 88
Metallurgical recovery – silver % 83
Initial capital 2 $ millions 168
Total Cash operating cost 3, per tonne of ore $52.08
Total Cash operating cost 4 per ounce Au Eq. $311
Total Cash operating cost, inc capital 4 per ounce Au Eq. $517
5
Total Cash operating cost (by-product) per unce Au (Ag credit) -$94
Total Cash operating cost inc capital (by- per unce Au (Ag credit)
$231
product) 5
Pre-Tax IRR % 41
Cash Flow (non-discounted) $ millions 660
NPV, 5% discount rate $ millions 434
NPV, 10% discount rate $ millions 286
1) This Preliminary Assessment is preliminary in nature, in that it includes inferred mineral resources that are
considered too speculative geologically to have the economic considerations applied to them that would enable
them to be categorized as mineral reserves, and there is no certainty that the results of the preliminary assessment
study will be realized.
2) Initial Capital includes $32.9 million in contingency allowance. Costs are based on Q3 2010 estimates and no
escalation factors have been applied. Value added tax has not been included in the cost estimates.
3) Total Cash Operating costs include smelting and refining, Peruvian Government royalties, but do not include
employee profit sharing or depreciation, depletion or amortization.
4) Total Cash Costs per ounce of gold equivalent are calculated using a silver-to-gold ratio of 60:1.
5) By-product accounting subtracts the revenue generated by silver from the operating costs as a credit to determine
the cost per ounce of gold.
6) Annual and life-of-mine production figures are after 5% mining losses, 20% mining dilution and the respective
metallurgical recoveries for gold and silver.
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Based on drill results received up to a cut-off date of 15 May 2010 (drill hole INMA 139), an
upd ted mineral resource estimate was calculated by FSS Canada, an independent consulting
firm. This new estimate was used as the basis for the scoping study.
The resource estimate was reported at a cut-off grade of 3 g/t gold equivalent (using a silver to
gold ratio of 60:1), which approximates the cut-off grade for the underground mining and
flotation process option selected for Inmaculada, using a base-case gold price of US$1,000 per
ounce.
Table 6.3 - Angela Vein, Inmaculada Project – Mineral Resource Estimates (as of 9 September 2010 at
US$1,000/oz gold and $17/oz silver)
100% Project Contained Ounces

Resource Gold Silver
Estimate Tonnes Grade Grade
Category (g/t) (g/t) Gold Silver
Gold Silver
Equivale nt Equivalent
Measured 1,080,000 5.1 107 178,000 3,717,000 240,000 14,395,000
Indicated 2,747,000 4.0 137 354,000 12,128,000 556,000 33,392,000
Measured
and 3,827,000 4.3 129 532,000 15,845,000 796,000 47,788,000
Indicated
Inferred 4,388,000 4.6 200 645,000 28,283,000 1,116,000 66,959,000

1) Resources are shown on a 100% project basis. IMZ controls a 70% interest (Hochschild Mining 30%) with a current
51% ownership and is earning a 70% interest by completing a feasibility study before September 2013 and issuing
to Hochschild 200,000 IMZ shares.
2) Numbers are rounded to reflect the precision of a resource estimate.
3) The estimated mineral resources are not mineral reserves and do not have demonstrated economic viability.
4) To limit the influence of individual high-grade samples, grade cutting was used. Gold assay grades were capped at
100 g/t and silver grades were capped at 1,500 g/t.
5) Average dry bulk densities of 2.51 tonnes per cubic meter (t/m3”) for all mineralized rocks.
6) The grades were interpolated using “Ordinary Kriging” estimation technique.
7) Descriptions of parameters to determine “Measured”, “Indicated” and “Inferred” resources are provided below.
8) The contained metal estimates remain subject to factors such as mini ng dilution and process recovery losses.
6.2.4 2011 Mineral Resource Estimate
In February 2011, IMZ reported an updated, increased mineral resource estimate for the
Inm culada project.
Table 6.4 contains the updated resource estimate (on a 100% project basis) using a 3.0 g/t gold
equivalent cut-off grade.
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Table 6.4 - Inmaculada Project, Angela Vein Deposit - Mineral Resource Estimate – 24 February 2011
100% Project Contained Ounces

Off Gold Silver
Estimate (g/t Tonnes Grade
Gold Silver
Category gold (g/t) (g/t) Gold Silver
Equivalent Equivalent
Equiv)
4.2 698,000 6.0 153 135,000 3,420,000 192,000 11,520,000
Measured 3.0 941,000 5.1 136 155,000 4,110,000 223,500 13,410,000
1.6 1,094,000 4.7 125 164,000 4,410,000 237,500 14,250,000
4.2 2,951,000 6.1 226 578,000 21,450,000 935,500 56,130,000
Indicated 3.0 3,806,000 5.2 198 640,000 24,210,000 1,043,500 62,610,000
1.6 4,518,000 4.7 177 676,000 25,700,000 1,104,333 6,260,000
4.2 3,649,000 6.1 212 713,000 24,880,000 1,127,667 67,660,000

Measured
and 3.0 4,747,000 5.2 186 795,000 28,320,000 1,267,000 76,020,000
Indicated
1.6 5,612,000 4.7 167 840,000 30,110,000 1,341,833 80,510,000
4.2 1,998,000 7.4 295 473,000 18,950,000 788,833 47,330,000
Inferred 3.0 2,648,000 6.1 247 521,000 21,030,000 871,500 52,290,000
1.6 3,553,000 5.0 199 568,000 22,770,000 947,500 56,850,000

1) Resources are shown on a 100% project basis. IMZ owns a 40% interest.
2) Metal prices used are US$15/oz for silver and US$900/oz for gold.
3) An overall average bulk density of 2.51 tonnes per cubic meter has been used for the tonnage estimation.
4) Gold equivalent grade is calculated at a silver: gold ratio of 60:1, using metallurgical recoveries of 88% for gold and
83% for silver and metal prices as stated in Note 2.
5) The resources are reported at a 3 g/t gold equivalent cut-off grade. This case is shown in bold text in the
Table above.
6) The estimated mineral resources are not mineral reserves and do not have demonstrated economic viability.
7) Numbers have been rounded in all categories to reflect the precision of the estimates.
8) The mineral resources were estimated by Hochschild using the ordinary kriging capability of MineSight software to
estimate metal grades for the main vein body and inverse distance to the power of three for the peripheral veins. A
b ock size of 10m by 5m by 10m in size was used and outlier high grades were top-cut to 30 g/t for gold and 860 g/t
for silver.
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7 Geological Setting and Mineralization
The information in this Section was sourced from a previous technical report by P&E Mining
Consultants Inc. completed in 2010.
7.1 Regional Geology
The Inmaculada Property is located in the Western Cordillera of southern Peru, which consists
of Cretaceous and Tertiary volcanics and to a lesser extent sedimentary sequences with
Tertiary intrusive (Figure 7.1). Gold deposits are located within the Cenozoic Puquio-Caylloma
Belt and are associated with volcanics and intrusions. Ore zones are hosted in volcanic rocks
as epithermal Ag-Au mineralized quartz vein systems including the Low Sulfidation (LS)
Pall ncata, Ares and Explorador deposits, Intermediate Sulfidation (IS) Arcata and Caylloma
dep sits and High Sulfidation (HS) Shila, Paula, Selene, Suyckutambo, Chipmo and Poracota
dep sits.
Figure 7.1 - Simplified Regional Geology of Peru
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7.1.1 Property Geology
The oldest rocks within the Property are Mesozoi clastic marine sediments of the Soraya
Formation of probable Mid Cretaceous age. The Soraya Formation consists of fine- to medium-
grai ed sandstones and calcareous sandstones. Overlying the Soraya Formation are
continental red beds of the retaceous Mara Formation. The Mara Formation consists of thick-
bed ed siltstones, sandstones and conglomerates. Both Mesozoic formations outcrop in the
vicinity of the Minascucho and San Salvador targets on the Property. At these localities, the
Mesozoic rocks are unconformably overlain by volcanic rocks of the Mid Oligocene (30 Ma)
Tac za Group, which reach a thickness of 600 to 800 m.
The known mineral occurrences on the Property are hosted by the Tacaza Group volcanics
(Figure 7.2). The Tacaza sequence consists of a thin, basal unit of rhyodacite lapilli tuff, overlain
by a thick sequence of andesitic flows, breccias and tuffs. Some local epiclastic sediments also
occur intercalated within the andesites. Small stocks and dykes of andesitic composition are
found within the Mesozoic basement rocks at Minascucho and San Salvador. These are thought
to represent the feeders to the more voluminous flows and breccias. Small rhyolite domes,
emplaced within Tacaza Group andesites, outcrop in the southwestern portion of Minascucho
and at Tararunqui.
At Minascucho and San Salvador, the uppermost portions of the Tacaza are represented by
laminated sandstones, tuffaceous sandstones and conglomerates which were deposited in a
lacustrine environment, within a graben-like setting (the Minascucho Graben). The lacustrine
sediments attain a thickness of approximately 40 m. Similar types of sediments of lacustrine
origin also occur in the southwest corner of the Quellopata area.
The Tacaza Formation is overlain by the Miocene Alpabamba Formation in the southeastern
part of the Property. The Alpabamba Formation consists of thin sequences of rhyodacite lithic
tuffs, with the total thickness of the formation approximately 800 m.
The Miocene Aniso Formation overlies the Alpabamba Formation and consists mainly of crystal
tuff up to 150 to 200 m in thickness. The Aniso Formation outcrops to the north of the Property
bou dary and is overlain by the Pleistocene to Pliocene aged Barroso Group. The Barroso
Gro p mainly consists of andesitic lavas, lahars and breccias with an aggregate thickness of
more than 400 m and occurs at the highest elevations within the Property.
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Figure 7.2 - Inmaculada Property Geology Map
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7.2 Geology of the Quellopata Veins
The Quellopata area, which hosts the Angela Vein, is underlain by intercalated andesiti lavas
and breccias of the Tacaza Formation. The andesites are greenish to purplish in color and
porphyritic. The breccias appear to be autochthonous.
Up to four lava flows have been delineated at Quellopata and are intercalated with volcaniclastic
breccias that consist of andesite clasts within an andesitic groundmass.
Northwest trending, southeast dipping faults are the oldest struct res at Quellopata and host the
eight veins known as Angela, Roxana, Martha, Teresa, Lourdes, Shakira, Juliana and Lucy
(Figure 7.3). Relative displacements of marker horizons in cross-sections constructed from core
logging and surface mapping, suggest that these structures are normal faults. These faults
app ar to have been active at various times, as evi enced by repeated brecciation of the fault
breccia which makes up a portion of the mineralization (along with vein and stockwork types).
Both northeast trending and east-west trending structures occur at Quellopata. East-west
trending, south dipping faults appear to displace the earlier vein structures. Where offsets have
bee observed in surface mapping, the apparent displacement is sinistral.
Four new quartz veins were identified in 2009 to the southeast of Quellopata, namely the
Org na, Marina, Verónica and Rebeca veins, located 650 m to the southeast of Quellopata’s
veins. The veins trend to the northeast-east with azimuths ranging from 050 to 070° and dip
steeply to the southeast
7.2.1 Geology of the Anta Patari Veins
The Anta-Patari veins are located 8 km to the southwest of the Quellopata veins (Figure 7.2).
Six low sulfidation Ag-Au epithermal veins are recognized: North Patari, South Patari, Patari,
Anta Norte, Menor and Anta Sur. The vein system strikes northeast to easterly and is
approximately 300 m in length. Individual veins trend predominantly to the northeast and range
between 0.3 to 6.0 m in width. The veins consist mainly of a vein / breccia of colloform-
crustiform, stockwork and saccharoidal quartz. Replacement te tures of carbonates by quartz
are common, carbonate veins are minor. Ilmenite-smectite occurs in patches. Cubic pyrite
occurs usually associated with iron and manganese oxides in many places.
7.2.2 Geology of the Cascara Huallhua Veins
The Cascara-Huallhua area is located to the southwest of Anta-Patari (Figure 7.2). Three low
sulfidation Ag-Au epithermal veins have been identified: Huallhua, Chaguaya and Ismo. The
Huallhua vein has been mapped for a strike length of approximately 600 m.
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Figure 7.3 - Geology of the Quellopata Veins
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7.3 Mineralization of the Angela Vein
Target vein structures are hosted in Tertiary-age volcanics and are associated with several
episodes of mineralization. Average vein thicknesses range between 0.8-4.0 m in width and the
majority of vein systems tend to be silver rich, although local variations do occur with zones of
lower Ag:Au ratios.
Detailed mapping showed that the dominant rock type which hosts the Quellopata veins is
and site / andesite breccia of the Oligocene Tacaza Formation. The mapping also showed that
the veins were predominantly northeast-trending, with the exception of the southwestern portion
of the area where they trend more westerly. Rock chip sampling has shown that consistently
high gold values (from 1 to over 10 g/t Au) are present in the Angela Vein, in the vicinity of line
10,000N of the local grid. This exposure of higher grade veining occurs in the valley. The better-
grade material does not reach surface over much of the vein’s strike length although quartz
veining can be seen. The veining at surface has opalescent quartz with only rare bladed calcite
pseudomorphs or colloform banding. The likely explanation is that the boiling level was just
below the current topographic surface except in the valley, and that precious metal deposition
stopped there.
Northwest trending, southeast dipping faults are the oldest struct res at Quellopata and host the
eight known veins: Angela, Roxana, Martha, Teresa, Lourdes, Shakira, Juliana and Lucy.
The Angela Vein outcrops in the central portion of the Quellopata vein system (Figure 7.3). The
vein strikes northeasterly (050º), dips to the southeast (45º to 90º) and outcrops on surface
along a strike length of 700 m (from line 9600N to 10300N). The vein has been intersected in
drilling as far to the northeast as line 12000N (Figure 7.4). The portion of the vein that carries
potentially economical quantities of precious metals so far occurs between 10000N and
118 0N, a strike length of some 2,000 m.
The vein varies in thickness from 0.5 m to as much as 16.0 m, averaging approximately 6.0 m,
and has been tested over a vertical extent of up to 300 m.
Two generations of mineralization have been observed in the Angela Vein, an early le d-zinc
event and a later gold-silver event. The early mineralization consists of white quartz veinlets
with sphalerite, galena, pyrite and argentite (minor). These veinlets form a broad, low-grade
envelope (0.2 to 1.0% Pb + Zn) which surrounds, and overlaps, t e Angela Vein mineralization.
The second mineralizing event at the Angela Vein is the most important economically, and
consists of a white chalcedony vein with associated breccia and stockworks. The chalcedony
contains small amounts (generally < 1%) of electrum, argentite, pyrargyrite, chalcopyrite, pyrite
and marcasite.
The Angela Vein is composed of a gangue of white chalcedony, quartz, calcite (minor), smectite
and illite. Pseudomorphic, quartz-after-calcite textures, and colloform banding, both indicative of
boiling, are quite common in the vein. Metallic minerals, which rarely constitute more than 1% of
the vein, occur as disseminations and colloform banding, an consist of pyrite, marcasite,
argentite, pyrargyrite, chalcopyrite, sphalerite and electrum.
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Figure 7.4 - Longitudinal Section with Grade Contours for the Angela Vein
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The andesitic wall rock surrounding the Angela Vein is altered to a propylitic assemblage
consisting of smectite, chlorite and disseminated pyrite. Quartz stockworks, some containing
significant quantities of base metals, are common in the wall rock adjacent to the vein.
Figure 7.5 shows a typical cross section through the Angela Vein wherein the vein changes
laterally into breccia or stockworks.
Figure 7.5 - Cross Section 10200N of the Angela Vein (looking north east)
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8 Deposit Types
The information in this Section was sourced from the previous technical report on the property
by P&E Mining Consultants Inc. completed in 2010.
The Inmaculada deposits can be broadly classified as low to high sulfidation epithermal silver-
gold deposits.
In terms of metallogenesis, the Property lies in the Cenozoic volcanic belt of Southern Peru,
known as the Puquio-Caylloma Belt. This belt hosts a number of important epithermal deposits
with Ag-Au mineralization distributed as veins, mantos and disseminated breccias. Deposit sub-
types on the Property include LS type which includes the Au-Ag quartz veins at Quellopata
including the Angela Vein, IS type and HS type which includes mineralized breccias at
Minascucho, Central and San Salvador and disseminated mineralization at Tararunqui.
The following sections are summarized from the following reports on epithermal systems:
Panteleyev (1996), Corbett (2002, 2007) and Taylor (2007).
8.1 Epithermal Au-Ag Deposit Classification Systems
Epithermal Au-Ag deposits form in near-surface environments, from hydrothermal systems at

shallow crustal levels (< 1 km) or low temperatures. They are commonly associated with centers
of magmatism and volcanism, but form also in shallow marine settings. Hot-spring deposits and
both liquid- and vapor-dominated geothermal systems are commonly associated with epithermal
dep sits. The deposits contain precious metals deposited by the mixing of upwelling
mineralized fluids which contain a magmatic component, with oxidizing ground water.
Much of the gangue mineralogy comprising quartz, adularia, and carbonate forms in response
to the boiling of dominantly meteoric fluids upon periodic, structurally-controlled pressure
rele se, and so may develop the characteristic banded fissure vein ores.
Historically, epithermal deposits have been exploited for a wide variety of metals and minerals,
however, many of the more economically significant deposits are mined for their precious
met ls.
8.2 Epithermal Deposit Sub-Types
Epithermal deposits are primarily distinguished using criteria of varying gangue and ore
mineralogy, deposited by the interaction of host rocks and groundwaters with different ore fluids.
The deposits are commonly considered to comprise one of two sub-types: LS and HS (Figure
8.1 and Table 8.1). Each sub-type is denoted by characteristic alteration mineral assemblages,
occurrences, textures, and in some cases, characteristic suites of associated geochemical
elements.
LS epithermal deposits are distinguished from HS rimarily by their sulfide mineralogy. Many
low sulfidation veins are well banded and each band represents a separate episode of
hydrothermal mineral deposition. LS deposits develop from dilute near neutral pH fluids and can
be subdivided further into two groups: those which display mineralogies derived dominantly
from magmatic source rocks (arc low sulfidation) and others with mineralogies dominated from
circulating geothermal fluid sources (rift low sulfidation).
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Figure 8.1 - LS and HS Epithermal Deposit Model
From Corbett (2007)
Styl s of LS Au-Ag are distinguished according to mineralogy and relation to intrusion source
rocks and influence precious metal grade, Ag:Au ratio, metallurgy and Au distribution. The
following subsets of LS have been distinguished by Corbett (2007): quartz-sulfide Au ± Cu;
carbonate-base metal Au; polymetallic Ag-Au; epithermal quartz Au-Ag; chalcedony-ginguro
epithermal Au-Ag. Polymetallic Ag-Au deposits dominate in the Americas as fissure Ag-rich
veins.
IS sub-types are considered to be a subset of LS types. In some epithermal deposits, notably

those of IS sub-type, base metal sulfides may comprise a significant ore constituent.
HS systems vary with depth and permeability control, and are distinguished from several styles
of barren acid alteration. HS systems develop due t the reaction of hot acidic magmati fluids
with the host rocks, producing characteristic zoned alteration and later sulfide and Au±Cu±Ag
dep sition. Ore systems display permeability controls governed by lithology, structure and
breccias and changes in wall rock alteration and ore mineralogy ith depth of formation.
Taylor (2007) subdivides based on LS and HS which are further subdivided into those hosted by
volcanic and plutonic rocks and those that are hosted in sedimentary and mixed host rocks.
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The polymetallic Ag-Au vein systems of South America typically occur with the following
sulfides: pyrite > sphalerite > galena > chalcopyrite with electrum, Ag sulphosalts (tennantite-
tetrahedrite, argentite) and quartz, carbonate and barite gangue. These systems are considered
the Andean equivalent of the SW Pacific carbonate-base metal gold epithermal systems.
Table 8.1 - Characteristics of Epithermal Deposit Sub-Types
Int rmediate
Low Sulfidation High Sulfidation
Sulfidation
Au - Ag, often sulfide- Ag - Au ± Pb - Zn; typically Cu - Au - Ag; locally
Metal Budget
poor sulfide-rich sulfide-rich
bimodal basalt-rhyolite andesite-dacite; intrusion andesite-dacite; intrusion

Host Lithology
sequences. centred district. centred district.
Tectonic
rift (extensional) arc (subduction) arc
Setting
vein arrays; open space vein arrays; open space

veins dominant; veins dominant;
veins subordinate, locally
Form and Style disseminated and disseminated and
dominant; disseminated
replacement ore minor; replacement ore minor;
of lteration
A / and replacement ore
stockwork ore common; stockwork ore common;
Mineralization overlying sinter common; productive veins may be common; stockwork ore
bonanza zones km-long, up to 800 m in minor.
common. vertical extent.
ore with quartz-illite- ore with sericite-illite

ore in silicic core (vuggy
adularia (argillic); barren (argillic-sericitic); deep
quartz) flanked by quartz-
silicification and base metal-rich (Pb-Zn ±
Alteration alunite-kaolinite (advanced
propylitic (quartz- Cu) zone common; may be
Zoning argillic); overlying barren
chlorite-calcite ± epidote) spatially associated with
zones; vein selvedges HS and Cu porphyry lithocap common; Cu-rich
zones (enargite) co mon.
are commonly narrow. deposits.
chalcedony and opal

uncommon; laminated
chalcedony and opal colloform-crustiform and chalcedony and opal
common; laminated massive common; uncommon; laminated
Vein Textures colloform-crustiform; breccias; local carbonate- colloform-crustiform veins
breccias; bladed calcite rich, quartz-poor veins; uncommon; breccia veins;
(evidence for boiling). rhodochrosite common, rhodochrosite uncommon.
especially with elevated
base metals.
low salinity, near neutral

low to high salinities;
Hydrothermal pH, high gas content moderate salinities; near
acidic; strong magmatic
Fluids (CO2, H2S); mainly neutral pH.
component?
meteoric.
McLaughlin, CA; Sleeper

Arcata Peru; Fresnillo
and Midas, NV; El Pierina Peru; Summitville
Examples Mexico; Comstock NV;
Peñón, Chile; Hishikari, CO.
Rosia Montana Romania.
Japan; Pallancata, Peru.
Compiled from Hedenquist et al. (2000) and Hedenquist and White (2005)
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9 Exploration
The following information on the exploration program on the Inmaculada Property from 2007-
200 is taken from the Hennessey and Pressacco (2009) and updated below to 2010.
Exploration and drilling programs prior to 2007 are described in Section 5 of this Report and
drilling from 2007 onwards is described in detail in Section 10 of this Report.
In 2007, Ventura acquired an option to explore the Property and began the exploration of the
Quellopata veins. The initial work consisted of detailed mapping, in-house topographic
surveying and rock chip sampling. Encouraging gold and silver assay results were received
from the Angela Vein at Quellopata, exposed in outcrop, and in the initial drill holes drilled in the
southwestern part of the vein. Ventura then followed the mineralization along strike to the
northeast where the vein disappeared under the ridge. The drilling program identified significant
‘blind’ mineralization in the Angela Vein.
9.1 2007 Ventura Exploration Program
Ventura, through its Peruvian subsidiary, performed the following exploration work:
 The initial work in Inmaculada project between April and September 2007 was the
rehabilitation of the access road to camp and to the Quellopata and Minascucho targets;
 The camp construction at Quellopata;
 Detailed topographic surveys at Quellopata (approximately 6 km2);
 Rock chip sampling at: Quellopata (360 samples) and regionally (133 samples); and
 Core drilling at Quellopata (15 holes totaling 2,901 m).
Ventura, through its Peruvian subsidiary, performed the following exploration work:
 Detailed topographic surveys of the Minascucho and San Salvador targets

(approximately 2 km2);
 Detailed geological mapping of Minascucho (1:2,500 scale approximately 1 km2);
 Detailed geological mapping of San Salvador (1:1,000, approximately 1 km2);
 Rock chip sampling at Minascucho (50 samples) and San Salvador (10 samples);
 Soil sampling at Minascucho (132 samples);
 46 Pima samples were taken at Minascucho and San Salvadors;
 Magnetic surveying at Minascucho (9.1 line-km) and San Salvador (4.2 line-km);
 IP / resistivity surveying at Minascucho (9.1 line-km) and San Salvador (4.2 line-km);
 Core drilling at Quellopata (39 holes totaling 10,252 m);
 Core drilling at Minascucho (7 holes totaling 1,460 m); and
 Core drilling at San Salvador (3 holes totaling 450 m).
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Ventura drilled a total of 15,059.2 m during 2007-08, thus completing one of the requirements
for earning its 51% equity position in the Inmaculada property.
The 2009 program explored new targets on the Inmaculada Property with three new gold
targets identified to the south and south-east of Quellopata and the Angela Vein: the Anta-Patari
zone, the Cascara-Huallhua zone and the Quellopata Southeast zone. These occurrences are
associated with quartz veins and veinlets hosted in volcanic sequences. Geochemical trends
correlate with detailed geological mapping confirming that the gold is associated with the
volcanic sequences.
The program at Anta Patari consisted of detailed geological mapping at 1:1,000 scale of the
Anta Patari (Patari, Anta Norte, Anta Sur and Minor) veins and rock chip sampling from vein
outcrops and trenches, totaling 286 samples.
The Huallhua vein in the Cascara-Huallhua area has been geologically mapped, with an
outcropping strike length of approximately 600 m. Sixteen rock channel samples were taken
from accessible workings on the Huallhua vein and a total of 50 samples were taken from the
Cascara-Huallhua area.
Mapping and sampling of the Quellopata Southeast prospective area commenced in 2009. Four
new quartz veins were identified in this area: Organa, Marina, Verónica and Rebeca vein. The
veins are located approximately 650 m to the southeast of Quellopata’s Martha vein. A total of
11 rock chip samples were taken from the new veins. The Rebeca vein reported low values in
gold and silver.
Table 9.1 gives the average gold and silver grades for the veins as well as the structural details
of e ch vein on the three prospects.
Table 9.1 - Rock Chip Results for the Anta Patari, Cascara-Huallhua and Quellopata Southeast Prospect Areas
Average Values
Average Average
Zone Vein Strike / Dip Width Length
Au Ag Width
(m) (m)
(g/t) (g/t) (m)
Patari
300/82NE 0.1-0.5 30 2.400 265.0 0.5
Norte
Patari 310/50-65NE 0.5-6 600 1.451 178.0 1.0

ANTA-
Anta
PATARI 330/75NE 0.3-4 280 5.600 453.0 1.2
Norte
Menor 340/63E 1-2.5 100 4.881 222.0 1.0
Anta Sur 310/85NE 0.5-3.5 120 8.600 215.0 1.0
Huallhua 270/81N 2.1 30 1.081 14.4 5.0
CASCARA- Isno 320/75S 13 70 0.005 0.2 4.7

HUALLHUA
330-315/70-
Chaguada 1.5 450 0.478 11.2 1.4
82NE
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Average Values
Average Average
Zone Vein Strike / Dip Width Length
Au Ag Width
(m) (m)
(g/t) (g/t) (m)
Organa 70/76SE 0.7 15 0.005 91.6 0.7
Marina 70/75SE 0.6-3.4 110 0.005 36.6 1.2

QUELLO-
PATA SE
Verónica 55/85SE 0.2-2.4 490 0.005 230.0 0.4
Rebeca 40/85SE 6 33 0.071 2.9 1.8
9.4 2010 IMZ Exploration Program
Following the acquisition of Ventura by IMZ in January 2010, IMZ continued exploring the
Quellopata area. The exploration program consisted of checking three targets; Quellopata
central (Chaparral fault); Quellopata south east (Rebeca, Veronica, Marina and Organa Vein)
and Quellopata South west (Melissa, Kattia, Jimena Vein). One hundred twenty seven channel
samples were taken in these new veins identified in Quellopata targets.
Eleven channel samples were taken in Quellopata entral area of Chaparral fault, 26 channel
samples were taken in Quellopata south east of Rebeca, Verónica, Marina, Organa Veins,
these veins were delimited an area of 1.5 by 1.5 km; In Quellopata south west, 85 samples
were taken in Melissa, Kattia and Jimena Veins, these structures were filled with quartz,
ban ing colloform opal, and hydrothermal breccias with chalcedonic and gray silica. Finally five
rock chip samples were taken as a Jimenas Veins reconnaissance.
Table 9.2 gives the average gold and silver grades for rock channel samples taken from the
veins as well as the structural details of each vein on the three target areas.
Table 9.2 - Summary of Channel Samples in Quellopata area
Averages Grade
Width Average
Ratio
Zone Vein Azimuth average Long. Observation
Au Ag Width Ag/Au
(m) (m)
(g/t) (g/t) (m)
QUELLOPATA Chaparral N60º/75ºSE 0.4 60 0.104 17.4 0.3 >100 Sb, Hg
N75º/60º-
80ºN -
Jimenas 0.5-3.9 400 0.048 0.5 1 46 Hg
N75º/60º-
80ºS
As, Mo, Sb,

Lucy I N90º/70ºS 0.3-1.2 300 2.58 43 1 33.8
Hg, Mn, Zn
QUELLOPATA
SW N70º- Ba, Mo, Hg,
Lucy II 0.3-1.2 300 1.625 18.8 1.1 44
N90º/70ºS Zn
As, Mo, Sb,

Kattia N80º/75ºS 0.3-0.9 70 0.912 8.7 0.6 18
Hg
N295º/80ºS As, Mo, Sb,

Melissa 0.5-3.0 240 0.596 15 1.7 45
W Hg
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Averages Grade
Width Average Ratio
Zone Vein Azimuth average Long. Observation
Au Ag Width Ag/Au
(m) (m)
(g/t) (g/t) (m)
Ba, Pb, Zn,

Organa N70º/76ºSE 0.7 15 0.005 91.6 0.7 >1000
Mn, Hg
Ba, Pb, Zn,

Marina N70º/75ºSE 0.6-3.4 110 0.005 36.6 1.2 >1000
QUELLOPATA Mn, Hg
SE
As, Pb, Zn,
Verónica N55º/85ºSE 0.2-2.4 490 0.005 230 0.4 >1000
Mn, Hg
Rebeca N40º/85ºSE 6 33 0.071 2.9 1.8 40 As, Hg, Mn
9.5 2011mHochschild Exploration Program
During 2011 Hochschild continued with surface sampling of rocks, channel samples were taken
from veins Jimenas, Martha, Angela (SW extension), Shakira and Juliana. The sampling was
don selectively, taking rock chips of quartz veins and wall rock in 0.4 m wide channels. This
sampling was carried out in soil covered areas, for this reason heavy machinery was used.
The trenching resulted in a total of 700 m of Angela SW extension being uncovered as well as
300 m of Shakira, 300 m of Juliana, 300 m of Jimenas (vein system), 100 m of Lucy and 100 m
of Martha.
Table 9.3 - Summary of 2011 surface exploration
Width Averages Grade

Ratio Nº
Zone Vein Azimuth average Long. Au Ag Width Ag/Au S amples
(m) (m) (g/t) (g/t) (m)
ngela NE N40/65-80SE 1.2 250 No significant values 342
QUELLOPATA Shakira NE N45/70-80SE 500 No significant values

NE Juliana NE N48/75SE 200 No significant values -
Martha N65/70SE 0.45 100 5.06 61.1 0.45 12.08 36

Angela SW N60/65SE 0.35 300 1.539 16.9 0.35 10.98 107
Cimoide Angela N65- 700 2.21 77.3 0.3 34.98 44
80/70NW 1.2
SW
N40/70NW 0.7 250 No significant values

Angela 1
QUELLOPATA
SW N40/60NW 0.7 150 No significant values
Angela 2
Shakira SW 0.55 200 2.15 63.8 0.55 29.67 17
Lucy N80/65S 0.45 100 3.81 129 0.45 33.86 41
Jimenas 3 300 2.615 22.6 0.3 8.64 275
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10 Drilling
10.1 Core Drilling
The following information on the drill program on the Inmaculada Property from 2007-2008 is
taken from the Hennessey and Pressacco (2009) and updated below to 2011.
From 2007 to December 2011, 326 core drill holes totaling 102,867 m have been drilled on the
Property. Table 10.1 provides the details on the program for each year to December 2011. This
does not include ancillary drilling such as specific geomechanical and hydrogeology holes.
Table 10.1 - Drill Holes on the Inmaculada Property, 2007 – December 2010
Number of Total Target

Company Phase
Drill Holes (m) Area
I 15 2,910 Quellopata
II 15 3,226 Minascucho
III 15 4,426 Quellopata

Ventura Gold
(2007-2009) IV 19 4,506 San Salvador
V 9 4,042 Quellopata
VI 36 15,437 Quellopata
VII 114 35,025 Quellopata

IMZ 2010
VIII 9 3,244 Quellopata
Hochschild 2011 IX 94 30,051 Quellopata
Total 326 102,867
10.1.1 2007 - 2008 Ventura Drill Program
The 2007 drilling campaign on the Inmaculada Property focused on the initial testing of the
Angela, Shakira, Martha, Teresa and Lourdes veins at depth at Quellopata, totaling 2,901 m in
15 holes. The best intersections were obtained from the Angela Vein along sections 10100N
and 10200N of the local grid. A list of drill holes and a summary of significant intercepts for the
200 drill program is reported in Hennessey and Pressacco (2009).
Based on the 2007 drilling results, a second drill program commenced in 2008 during which a
total of 39 core drill holes and 10,247 m was drilled at the Angela Vein using a nominal
separation between holes of 100 m along strike and between 50 to 100 m down dip. The Angela
Vein was tested along a strike length of 1,000 m (between lines 10000N and 11000N) as well
as across a vertical distance of approximately 200 m. Drilling extended the Angela Vein to a
strike length of more than 900 m and a depth of 300 m below surface and continues to show
continuity of thickness and grade throughout the vein (Ventura News Release 3 December
200 ).
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The vein remained open at depth and down-plunge to the northeast. A list of drill holes and a
summary of significant intercepts for the 2008 drill program on the Angela Vein is reported in
Hennessey and Pressacco (2009). The San Salvador target is located approximatel 7 km
northwest of the Angela Vein. Three core drill holes, totaling 450 m, were drilled below an
outcropping, mineralized breccia at San Salvador which represents a disseminated, high-
sulfidation gold target. The drill results indicated the presence of gold mineralization, requiring
additional evaluation and drilling to better understand the underlying structure (Ventura News
Release 3 December 2008).
Highlights of the drilling include the following (true wi ths unknown):
 SS-01: From 107.4 to 121.5 m; 14 m at 0.4 g/t Au and 26 g/t Ag

 SS-03: From 20.0 to 38.0 m; 18 m at 0.7 g/t Au and 20 g/t Ag
The Minascucho breccia, located 5 km north of the Angela Vein, was drilled in 2008 with
5 core drill holes completed in the breccia and two additional holes drilled on the Central zone
(another exploration target adjacent to Minascucho), totaling 1 460 m. The Central zone drill
holes returned no significant values. Positive results were reported from the Minascucho breccia
(Ventura News Release 8 September 2008) with significant intersections as follows:
 MIN-01: From 70.65 to 107.05 m; 32 m at 2.0 g/t Au and 8 g/t Ag

The 2007 - 2008 core drilling program on the Angela Vein in the Quellopata area was performed
by Bradley-MDH (Bradley) of Lima, Peru. All holes were drilled using HQ-diameter rods up to a
depth of 250 m and NQ-diameter rods to the end of hole.
The azimuth and inclination of the drill stem were measured using topographic surveying
instruments. Dip and azimuth measurements were taken every 100 m down the hole with a
Reflex ‘EZ-Shot’ instrument which electronically records the azimuth, dip and local magnetic
field.
10.1.2 2009 Ventura Drill Program
In 2009, 45 core drill holes totaling 15,4312 m were drilled on the Property
(Table 10.2). The drill program commenced on 3 June 2009 and was completed by December
15, 2009. Holes were drilled by Bradley using a modified Hydracore LD-250 portable drilling
machine with HQ-diameter rods to 250 m then NQ-diameter rods to the bottom of the hole and
two LF70 drilling machine using HQ-diameter rods.
The program focused on the Angela Vein at Quellopata in order to expand the known mineral
resources, extend the vein laterally to the northeast and to further define some of the possible
feeder zones that are still open at depth (IMZ News Release 19 January 2010). Infill drilling was
und rtaken between sections 10000N and 10400N and exploration drilling between sections
105 0N and 11600N. As a result of the program, the Angela Vein was extended to a 1,500 km
strike with an average width of 8.3 m. An additional 2,000 m of the 2009 drill program tested the
down-dip extent of mineralization at the Martha Vein and the untested Anta and Patari Vein
systems. The Martha Vein was first intersected during the 2007 drill program (Ventura News
Release 2 July 2009).
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10.1.3 2010 IMZ Drill Program
One hundred - twenty one core drill holes totaling 38,269 m have been drilled on the Property
from 15 January 2010 to 15 December 2010.The holes were drilled by Bradley using a modified
Hydracore LD-250 portable drilling machine with HQ-diameter rods to 250 m then NQ-diameter
rods to the bottom of the hole and two LF70 drilling machine using HQ-diameter rods. The
drilling extended the Angela Vein mineralization for an additional 500 m of strike length to more
than 2,000 m with a vertical extent of up to 300 m and the vein system averaging 12.5 m in
width. Mineralization remains open along strike to the northeast (IMZ News Release, 4 May
201 ). Table 10.2 lists significant intercepts of the 2007 to 2010 drill program.
Table 10.2 - Significant Representative Intercepts for the 2007 to 2010 Drill Program
Au Eq-
DDH True
From To Inters Au Ag Au q E ppm Width
Section DDH length Az Incl Width
(m) (m) (m) (gpt) (gpt) (Ag/Au=60) ppm-m
(meters) (meters)
(Ag/ A u=60)
Inma-
10000N 100.50 310 -52 26.88 31.22 4.34 2.4 7.38 124 9.45 22.7
207
Inma-
10050N 101.30 310 -58 52.35 70.60 18.25 10.00 4.07 145 6.49 64.9
117
including 52.35 61.15 8.80 4.80 6.98 158 9.61 46.1
Inma-
10100N 310 -45 50.50 56.65 6.15 5.00 6.32 166 9.09 45.4
04
including 53.20 56.65 3.45 2.80 8.98 129 11.13 31.2
Inma-
10100N 310 -45 204.75 217.15 12.40 12.00 3.90 99 5.55 66.6
16
including 212.75 217.15 4.40 4.30 8.60 237 12.55 54.0
Inma-
10100N 187.30 310 -52 151 157.65 6.65 6.20 22.39 156 24.99 154.9
75
Inma-
10150N 230.90 310 -45 187.50 192.98 5.48 5.40 4.97 104 6.70 36.2
78
including 192.23 192.98 0.75 0.70 29.38 495 37.63 26.3
Inma-
10200N 130.30 310 -45 68.00 91.35 23.35 20.00 3.01 121 5.03 100.5
14
including 72.40 75.90 3.50 3.00 6.54 118 8.51 25.5
Inma-
10200N 310 -45 87.45 91.35 3.90 3.30 9.32 476 17.25 56.9
14
Inma-
10250N 210.00 310 -59 170.20 180.00 9.80 8.00 4.20 143 6.58 52.7
105
including 170.20 173.85 3.65 3.00 6.30 183 9.35 28.1
Inma-
10300N 310 -45 156.00 163.75 7.75 7.20 16.66 294 21.56 155.2
19
Inma-
10400N 270.40 310 -51 240.58 246.56 5.98 5.10 5.00 180 8.00 40.8
152
Inma-
10550N 269.10 310 -63 231.30 242.80 11.50 10.00 6.34 232 10.21 102.1
155
Inma-
10650N 320.40 310 -80 281.24 296.75 15.51 11.00 6.78 265 11.20 123.2
163
Inma-
10700N 330.80 310 -57 302.20 306.9 4.70 4.20 6.03 330 11.53 48.4
203
Inma-
10800N 320.30 310 -56 297.5 304.4 6.90 6.85 3.03 169 5.85 40.0
197
Inma-
10900N 457.45 310 -51 395.60 400.76 5.16 5.00 2.30 179 5.28 26.4
64
including 395.60 399.30 3.70 3.60 2.78 240 6.78 24.4
PEMN00012-RPT-0001
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Au Eq-
DDH True
From To Inters Au Ag Au E q ppm Width
Section DDH length Az Incl Width
(m) (m) (m) (gpt) (gpt) (Ag/Au=60) ppm-m
(meters) (meters)
(Ag/ Au=60)
Inma-
11100N 484.10 310 -55 413.00 424.85 11.85 11.00 4.08 324 9.48 104.3
61
including 416.30 421.10 4.80 4.50 6.70 554 15.93 71.7
Inma-
11200N 606.50 310 -55 470.45 473.55 3.10 2.90 2.29 306 7.39 21.4
73
Inma-
11300N 324.10 310 -48 242.00 250.20 8.20 7.60 5.02 136 7.29 55.4
104
including 242.00 245.90 3.90 3.60 7.92 195 11.17 40.2
Inma-
11500N 412.40 310 -55 298.25 303.75 5.50 4.60 5.36 178 8.33 38.3
91
Inma-
11600N 629.20 310 -61 338.70 341.20 2.50 1.90 3.42 242 7.45 14.2
118
Inma-
11700N 567.60 310 -59 465.45 471.70 6.25 5.00 7.15 192 10.35 51.8
137
Inma-
11800N 414.40 310 -43 374.48 378.62 4.14 3.60 3.87 87 5.32 19.2
164
10.1.4 2011 Hochschild Drill Program
During 2011, infill drilling was carried in the Angela Vein with a otal of 4,520 m in 12 core drill
holes. Resource delineation and brownfield drilling was carried out in Angela SW, Shakira,
Martha, Theresa Juliana, Jimenas and Nia, the total drilling was 25,531 m in 82 core drill holes,
all performed from 15 January to 20 December.
At the same time drill core and reverse circulation was performed as part of the Feasibility Study
with a total of 4,782 m in 49 holes (46 core drill holes and 3 reverse circulation drill holes). This
consisted of geotechnical drilling perfo med in the proposed locations for the tailings dam,
waste dump and raw water dam. Also geomechanical drilling was completed along the
han ingwall and footwall strikes of the Angela Vein. This program was carried out from 7 June
to 1 November.
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11 Sample Preparation, Analysis, and Security
11.1 Sample Preparation
All samples are received by SGS-Lima and are processed through a sample tracking system
that is an integral part of th t company’s Laboratory Information Management System (LIMS).
This system utilizes bar coding and scanning technology that provides complete chain-of-
custody records for every stage in the sample preparation and analytical process and limits the
potential for sample switches and transcription errors.
Afte receipt and logging into the LIMS system, samples were dried in a large oven at
105 ºC (70 ºC if the sample is to be sent for mercury analysis). Samples were then crushed to
95% passing -10 mesh (1.7 mm). A 250 g subsample of the crushed material was then
pulverized to 95% passing -140 mesh (106 micron). The sample preparation equipment was
cleaned with barren cleaning material between sample preparation batches and, where
necessary, between highly mineralized samples. Sample preparation stations were also
equipped with dust extraction systems to reduce the risk of sample contamination. Pulps and
coarse rejects from the prepared samples were returned to IMZ and stored in a secure
warehouse in Lima for future reference.
11.2 Shipment and Storage of Samples
Following the logging and core marking procedures described above, the co e was sampled by
experienced samplers who have worked for Suyamarca or related companies on other projects.
Quality control was maintained through regular verification by on-site geologists.
Core was broken, as necessary, into manageable lengths. The pieces were removed from the
box without disturbing the sample interval markers and cut in h lf, lengthwise, with a diamond
saw.
One half of the core was placed in a plastic sample bag and the other half was carefully
repositioned in the core box. The tops of the sampl bags were folded over several times and
stapled shut with the sample tag visible in the fold for easy identification of the sample once
shipped to the laboratory. The sample tag number was also written on the bag in black marker.
The individual sample bags were placed in heavy fiberglass rice bags and sealed with heavy
plastic tape.
The sealed sample bags were shipped by company truck to the field office in Chalhuanca where
they were sent onward to Lima, either by commercial bus or by company truck. The samples
were shipped to IMZ’s Lima office where the quality assurance/quality control (QA/QC) samples
were inserted prior to shipment to SGS. From the IMZ’s Lima office the samples were
transported to SGS by SGS laboratory personnel.
Once sampling was complete, the ends of the core boxes were painted white and information
regarding drill hole number, box number and from and to intervals was recorded on the box
ends. They were then stored in the core shed on-site at the Inmaculada Property.
The sample submission forms for the assay laboratory were prepared in Lima by the geologist
responsible for insertion of the QA/QC samples.
11.3 Gold Analysis
Prepared sample pulps were analyzed for gold by fire assay of a 30 gram aliquot with atomic
absorption spectrophotometry (AAS) finish (SGS code FAA313). Samples that assayed in
PEMN00012-RPT-0001
Rev: 0 45
excess of 5 g/t Au were re-analyzed with a gravimetric finish to ensure a more accurate result at
the igher grades (SGS code FAG303).
A 35-element ICP package was also utilized for base metal and silver determinations. This
package uses an aqua regia acid digestion with atomic emission spectroscopy (AES) finish
(SGS code ICP12B). Over limit samples returning more than 100 g/t Ag were re-run using a
multi-acid digestion method with AAS determination of silver, a method optimized for higher
grades (SGS code AAS41B). SGS reports that the multi-acid digestion used for AAS41B is a
“combination of HCl (hydrochloric acid), HNO3 (nitric acid), HF (hydrofluoric acid) and HClO4
(perchloric acid)” often referred to as a ‘near- total digestion’.
11.4 Bulk Density Data
The density information used in the resource and reserve estimates comes from a study done
by Ventura in 2008 in which density was calculated for 100 samples of drill core from six
lithologies. Each sample was dried, weighed in air, sealed in wax and weighed in water. Using
Archimedes’ Principle, the dry bulk density of the material is based on the following formula:
Dry bulk density = Dry weight in air ÷ (Dry weight in air – Weight of sealed sample in water)
Note that with the weight of the sealed sample was adjusted to take into account the weight of
the wax used to seal the sample before it was immersed in water.
Fifty one (51) of the 100 samples in this study were taken from the Angela Vein. The average
density of these 51 samples was 2.51 t/m3. The average density of the 29 samples of unaltered
and site material surrounding the mineralized vein was 2.54 t/m3 The average density of the 20
samples showing stockwork alteration in andesitic material was 2.44 t/m3. The 51 samples of
mineralized material suggest that there may be a very slight tendency for density to decrease
with increasing grade. The ten samples with highest gold-equivalent grades (> 10 g/t) had an
average density of 2.49 t/m3, while the ten samples with the lowest gold equivalent grades
(< 1 g/t) had an average density of 2.53 g/t. With these differences being small, only 1-2%, and
with too few samples to confirm whether or not they are statistically significant, the current
resource and reserve estimates use a single density constant, 2.51 t/m3, for the Angela Vein. If
future studies establish that there is a statistically significant difference between the density of
well-mineralized Angela Vein and weakly mineralized Angela Vein, then future resource tudies
should make use of densities that capture this relationship.
PEMN00012-RPT-0001
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12 Data Verification
12.1 Verification of Database from Assay Certificates
The Database was recompiled in September 2010 by R. Mohan Srivastava, P. Geo. f FSS
Canada Consultants Inc. (FSS), after spot-checking of the electronic assay data base against
original assay certificates identified several types of errors, including assay values entered in
the wrong interval, assay values not entered into the electronic data base, and typographical
errors. The December 2011 mineral resource update corresponds exactly to the data provided
by SGS. The only drill holes for which this verification was not possible were the earliest core
drill holes, the QU series, which were drilled by Hochschild. Of these, the two which affect the
resource estimates are QU-07 and QU-25. QU-07 intersects the Angela Vein, and contributes
sample intervals whose gold and silver assays are used for grade estimation. QU-25 does not
intersect the Angela Vein, but its lack of strong mineralization forces closure of the Angela Vein
wireframe nearby; in this sense, QU-25 does affect the volume (and tonnage) estimates, but not
the grade estimates. For these two drill holes, the assay data in the electronic data base was
checked against tabulations of assay values, and average values across the Angela Vein, that
app ar in earlier project reports.
12.2 Independent Checks
The Inmaculada Property was visited by Mr. David Burga, P. Geo. on 10 and 11 June 2010 and
Mr Ian Dreyer, CP on 13 July 2011. A tour of the drill sites was undertaken and core handling,
core logging and sample protocols were observed. Check coordinates for selected drill hole
collars were collected by GPS in 2010.
Ten assay verification samples were taken from nine drill holes during the June 2010 site visit.
Sample intervals were taken from a variety of low, medium and high grade mineralized material.
The chosen intervals were then sampled by taking the remaining half-split core. The samples
were documented, bagged and sealed with packing tape and taken by Mr. Burga to ALS
Chemex in Lima, Peru for analysis.
At no time, prior to the time of sampling, were any employees or associates of IMZ advised as
to the location or identification of any of the sample intervals to be collected nor did they, at any
time, have access to the sampled material.
A comparison of the independent sample verification results versus the original assay results for
gold and silver are depicted in Figures 12.1 and 12.2 respectively. The results for gold and
silver were satisfactory and clearly demonstrate that the tenor of the mineralization is similar to
what was originally reported.
PEMN00012-RPT-0001
Rev: 0 47
Figure 12.1 - Verification Sample Results for Gold, June 2010
P&E Site Visit Verification Sample Result for Ag: June 2010
600
500
400
300 Original Ag V alues

QA/QC Ag Values
200
100
P&E Sample Number
Figure 12.2 - Verification Sample Results for Silver, June 2010
PEMN00012-RPT-0001
Rev: 0 48
12.3 Quality Assurance and Quality Control Programs
Core samples from Inmaculada were shipped to IMZ’s Lima office where the standards and
blanks were inserted and the entire sample shipment prepared for delivery to the SGS
laboratory in Lima. Either a standard or a blank was inserted after every ten core samples, with
standards and blanks being used alternately; this results in one of the five standards being used
after every 20th core sample.
The position of the QA/QC samples was determined in the field during logging and sample tags,
in sequence with the core samples, were reserved for QA/QC purposes so that the sample
numbering of the standards and blanks was seamlessly integrated with the core samples.
The reliability of the Inmaculada assay results was monitored by a QA/QC program conducted
by IMZ, that included the use of standards (to monitor accuracy), blanks (to monitor
contamination) and duplicates (to monitor precision).
IMZ has a head office staff geologist who implements the QA/QC program and monit rs the
results of the standards, blanks and duplicates, looking for significant discrepancies in duplicate
results, anomalously high values for the blank samples or sample results which are significant
deviations from the accepted values for the standards. All anomalous results were reported to
IMZ’s exploration manager and followed up with the laboratory.
The standards consist of five standards, three of which were manufactured by SGS from local
gold-silver mineralization, and two of which were commercial standards purchase from
Rocklabs Ltd., a commercial provider of standard reference materials. The gold standards
range from roughly 0.3 g/t to nearly 9 g/t; the silver standards range from trace quantities to
over 1,000 g/t. As discussed earlier, the internal silver standards used by SGS covered only the
lower silver grades up to 30 g/t; the external silver standards used by IMZ span the entire range,
and thus serve as the better source of information on the accuracy of the high-grade silver
assays.
12.3.1 Duplicate Samples
IMZ selected both pulp and coarse reject duplicates to be checked by re-assaying.
Approximately 10% of all samples were sent for check assay. About 5% of the coarse reject
samples were selected randomly, renumbered and sent back to the SGS laboratory for re-
assay. Approximately 5% of the pulps were selected for re-assay, usually based on unexpected
assay results, and were sent to a secondary laboratory for check assay. ALS Chemex in Lima
was used as the secondary laboratory by IMZ; it analyzed the samples using similar methods to
those employed by the primary laboratory, SGS.
The precision of duplicate assays was monitored using scatter plots, examples of which are
shown in Figures 12.3 and 12.4. For the pulp duplicates, almost all of them (over 99%) have the
two assays within ± 10% of their average; with the pulp duplicates having been assayed by two
different labs, this indicates a very high degree of precision in the assay values. Furthermore,
these inter-laboratory checks do not indicate any problem with systematic bias in either
laboratory. The coarse reject duplicates show slightly less precision than the pulp duplicates,
but still have almost 90% of the duplicates within ± 10% of their average.
Since 2007, none of the duplicate scatter plots has indicated an problem with sample mix-ups
due to poor inventory control, or with typographical or transcription errors.
PEMN00012-RPT-0001
Rev: 0 49
Figure 12.3 - Scatter Plot for Pulp Duplicates, Showing the Comparison of the Original Silver Assays from the
SGS Laboratory to the Duplicate Silver Assays from the ALS Chemex Laboratory
PEMN00012-RPT-0001
Rev: 0 50
Figure 12.4 - Scatter Plot for Coarse Reject Duplicates, Showing the Comparison of the Original Silver Assays
from the SGS Laboratory to the Duplicate Silver Assays from the ALS Chemex Laboratory
12.3.2 Blanks
The material used as blanks for the Inmaculada Property is locally purchased stone from
Agregados Calcareos. A blank was inserted after every 20th sample, ten samples before (and
after) each standard.
Blanks were monitored using control charts as shown in Figures 12.5 and 12.6. The magenta
line on the control chart shows the assay values reported by the lab; the blue line defines the
acceptable limit for blank assays. Since the locally purchased stone does, in fact, contain trace
amounts of gold and silver, the acceptable upper limit is set at a threshold designed to detect
significant cross-contamination of gold or silver from mineralized core samples.
Since the beginning of the Inmaculada drilling, there have been no blank samples that have
shown any significant cross-contamination between samples. On rare occasions, the silver
blanks assay exceeded 1.5 g/t with an example of this in Figure 12.6. This level of silver is
extr mely low, around the 1st percentile of the silver grade distribution and is entirely consistent
with the trace amounts observed in one of the local sources used by Agregados Calcareos.
PEMN00012-RPT-0001
Rev: 0 51
Figure 12.5 - Control Chart for External Gold Blanks
Figure 12.6 - Control Chart for External Silver Blanks
PEMN00012-RPT-0001
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12.3.3 Standards
The external standards consisted of five standards, three of which were manufactured by SGS
from local gold-silver mineralization, and two of which were commercial standards purchased
from Rocklabs Ltd., a commercial provider of standard reference materials. The gold standards
range from roughly 0.3 g/t to nearly 9 g/t; the silver standards range from trace quantities to
over 1,000 g/t. As discussed earlier, the internal silver standards used by SGS covered only the
lower silver grades up to 30 g/t; the external silver standards used by IMZ span the entire range,
and thus serve as the better source of information on the accuracy of the high-grade silver
assays.
Either a standard or a blank was inserted after every ten core samples, with standards and
blanks being used alternately; this results in one of the five standards being used after every
20th core sample.
External standards were monitored using control charts like the one shown in Figure 12.7
below. The red solid line on the control chart shows the reference value for the standard; the
magenta line shows the assay values reported by the lab; and the blue dashed lines define the
acceptable range for each standard, and are set at ± 10% of the reference value.
Figure 12.7 - Control Chart for External Gold Standards
PEMN00012-RPT-0001
Rev: 0 53
13 Mineral Processing and Metallurgical Testing
13.1 Introduction
The Inmaculada project is being developed by Minera Suy marca S.A.C. with ore from
und rground mining operations. The gold-silver bearing ores will be processed at a nominal rate
of 3,506 t/d, with 91% availability, in a plant recovering the precious metal into doré bars. The
process plant design feed grades are 4.5 g/t Au and 164 g/t Ag.
The process flowsheet includes single stage crushing, followed by grinding in a SAG-ball milling
circuit (SAB) operating in closed-circuit with cyclones. The ground slurry is then fed to a leach
circuit, for precious metal dissolution in cyanide solution. The gold in leach solution will be
recovered in solution in a counter current decantation (CCD) circuit and precipitated in a Merrill
Crowe circuit.
The precipitated gold and silver will be dried and smelted on site to produce gold and silver
doré.
The leach circuit tailings are treated for cyanide destruction by the INCO SO 2/Air method to
reduce the weak acid dissociable cyanide (CNwad) level to <50 ppm, prior to release into the
tailings storage facility (TSF). Water is reclaimed from the TSF and used as make-up process
water. Fresh water is provided for specific use within the processing circuits. Figure 13.1
provides an overall process block diagram.
PEMN00012-RPT-0001
Rev: 0 54
SO DIUM FE RRIC
CYA NI DE L EA D METABISULFI SULP HA
(SOL. ) TE TE
STEEL G RI NDI NG NITRATE (SMBS )
CO PPE R HY DRO GE N
MEDIA LIME OXYG EN LIME FLO CCULA LIME OXYG EN
SULP HA
LIM FLOCCULA OXYG EN TE NT PEROXI DE
E NT
WATE R O/F WATE R O/F

A s & Cu
CO UNTE R REM OVAL
LEACHI NG CURRENT
CI RCUIT
DE CA NTATIO N
(CCD)
CEME NT
PRE G NA NT RE CO VE RY
ANTIS CALA NT SOL UTION
WATE R
ANTIS CALA NT
DIATOMA CEO US
EART H LEA D PRE CI OUS
NITRATE METALS
ZINC IN P O WDE R RE CO VE RY
(ME RRILL-
VACUUM
CRO WE)
FL UXES GAS
GOL D
RO OM AND
MERCUR
Y
PRE CI O
US
METALS
DO RE BA RS
Figure 13.1 - Block Diagram of the Processing Facility
PEMN00012-RPT-0001 55
Rev: 0
13.2 Key Sample Selection Criteria
The Angela Vein was divided into three zones or domains along the strike of the vein for the
purposes of selecting metallurgical samples. The first domain represents the upper zone of the
vein, with the third domain representing ore at the deepest section of the vein. Core drill hole
(DDH) ¼ core nd ½ core samples were selected from these domains to represent a bulk
composite of the material in each domain.
In addition, variability samples were selected to provide an understanding of the change in ore
characteristics spatially within the deposits, and determine any potential impact on the
met llurgical response of these ores.
The drill hole locations from where the zone composites and variability composites were taken
are depicted in Figure 13.2. The intercepts selected are shown in Tables Table 13.1 and Table
13.2.
PEMN00012-RPT-0001 56
Rev: 0
Figure 13.2 - Metallurgical Drill Hole Location
PEMN00012-RPT-0001 57
Rev: 0
Table 13.1 - Zone Composites Drill Hole Identification
Zone 1 Composite Zone 2 Composite Zone 3 Composite
Hole ID From To Hole ID From To Hole ID From To
INMA-05 75.6 79.6 INMA-22 104.6 107.2 INMA-65 299.4 305.4
INMA-14 71.9 78.9 INMA-23 155.0 162.9 INMA-68 474.0 478.5
INMA-15 129.9 135.5 INMA-29 202.3 207.1 INMA-73 470.5 474.2
INMA-16 204.8 217.2 INMA-30 311.8 324.1 INMA-77 361.0 364.9
INMA-18 104.7 107.7 INMA-32 290.4 297.2 INMA-90 465.3 471.3
INMA-19 156.0 163.8 INMA-33 172.6 182.1 INMA-101 535.4 543.2
INMA-20 127.7 133.6 INMA-35 197.0 203.7 INMA-104 241.5 246.6
INMA-24 218.3 226.1 INMA-36 274.8 281.3 INMA-107 504.3 506.3
INMA-26 224.8 233.3 INMA-44 124.1 130.2 INMA-114 379.7 384.3
INMA-27 254.1 261.8 INMA-53 275.3 287.8 INMA-122 424.8 440.9
INMA-72 189.0 192.9 INMA-55 176.0 182.1 INMA-125 479.8 486.7
INMA-80 215.2 218.5 INMA-58 379.3 382.8 INMA-137 465.5 491.3
INMA-84 86.6 91.3 INMA-62 308.5 315.5 INMA-139 543.2 548.3
INMA-85 246.0 253.6 INMA-64 394.2 399.3 INMA-143 540.3 546.8
INMA-89 191.0 195.3 INMA-156 182.4 195.8 INMA-149 432.7 442.8
INMA-92 235.0 244.5 INMA-158 197.9 207.0 INMA-159 239.6 246.9
INMA-93 36.0 40.6 INMA-167 301.2 309.2 INMA-161 366.1 378.9
INMA-123 139.9 145.6 INMA-182 207.2 212.7 INMA-164 374.5 378.6
INMA-124 83.8 91.3 INMA-189 120.6 129.8 INMA-171 305.9 310.8
INMA-126 232.5 240.9 INMA-196A 322.9 339.2 INMA-175 349.7 359.0
INMA-128 268.5 272.7 INMA-203 301.3 307.7 INMA-181 333.8 344.9
INMA-133 67.6 75.9 INMA-192 272.4 285.4
INMA-138 194.1 198.3 INMA-204 188.7 197.1
INMA-140 214.0 223.4
INMA-141 277.5 284.0
INMA-145 116.8 122.1
PEMN00012-RPT-0001 58
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Table 13.2 - Summary of Variability Samples Locations
Zone 1 Variability Z one 2 Variability Zone 3 Variability
Hole ID From To Hole ID From To Hole ID From To
INMA-04 49.5 707 INMA-163 283.2 299.0 INMA-61 411.2 424.9
INMA-75 148.6 158.5 INMA-200 200.8 218.1 INMA-100 270.8 280.7
INMA-135 101.1 110.9 INMA-197 291.8 305.0 INMA-186 359.2 369.5
INMA-106 178.7 193.8 INMA-154 197.0 207.0 INMA-129 361.5 371.5
INMA-151 175.2 283.6 INMA-185 228.3 246.9 INMA-109 421.4 434.5
INMA-103 154.7 169.5 INMA-180 227.3 258.5 INMA-183 333.9 358.8
INMA-017 201.2 231.9 INMA-193 185.1 220.8 INMA-83 329.1 341.7
INMA-137 420.0 455.0
13.2.1 Variability Composites
A sub-sample was taken from each variability composite for a duplicate head assay prior to
extr ction testwork. The results are summarized in Table 13.3
Table 13.3 - Variability Composite Head Assays
Au Ag As Corganic Cu Hg Pb Ssulfide Zn
Composite
g/t g/t ppm % ppm ppm ppm % %
VC1 0.84 33 50 <0.03 46 0.40 155 0.70 0.04
VC2 3.46 132 40 <0.03 324 0.20 310 0.64 0.09
VC3 11.4 74 40 <0.03 110 0.20 75 0.50 0.08
VC4 1.42 39 190 <0.03 26 0.10 270 0.66 0.09
VC5 2.98 110 30 <0.03 116 0.10 315 0.42 0.20
VC6 2.89 63 100 <0.03 48 0.30 175 0.44 0.06
VC7 4.34 133 30 <0.03 72 0.20 205 0.20 0.04
VC8 6.25 221 10 <0.03 126 0.20 260 0.20 0.05
VC9 3.03 140 160 <0.03 146 0.20 615 0.74 0.18
VC10 1.92 111 20 <0.03 36 <0.1 175 0.14 0.04
VC11 3.42 78 410 <0.03 214 0.20 190 1.36 0.11
VC12 4.69 249 1050 <0.03 1540 0.90 1435 1.92 0.16
VC13 3.07 223 30 <0.03 416 <0.1 6640 1.26 1.16
VC14 6.25 188 2670 <0.03 98 1.80 575 4.06 0.12
PEMN00012-RPT-0001 59
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Au Ag As Corganic Cu Hg Pb Ssulfide Zn
Composite
g/t g/t ppm % ppm ppm ppm % %
VC15 5.77 199 40 <0.03 112 <0.1 560 0.18 0.15
VC16 11.55 294 2480 <0.03 134 0.60 170 2.94 0.04
The Inmaculada variability composites gold head assays ranged from 0.8 to 12 g/t, while silver
hea grades ranged from 32 to 296 g/t. The silver-to-gold ratios varied from 23:1 to 43:1 with
some outliers of very low gold grade.
The majority of the samples contained sulfide sulfur in the range 0.2 to 0.8%, with four variability
composites recording high sulfide values in the range 1.4 to 4%. Arsenic levels varied from
20 ppm to 2,480 ppm in variability composites. Mercury levels ranged from 0.1 ppm to 0.9 ppm
with a few composites below the detection limit.
Org nic carbon content was below detection of 0.03% in all variability composites. This is
considered below the limit that would cause preg-robbing in a leach circuit.
The variability sample assays showed a general increase in the sulfide sulfur, mercury and
arsenic content at depth. This was confirmed with the domain samples. Domain three has
higher gold and silver assays but also higher copper, mercury, sulfur and arsenic which
indicates a slightly higher refractory gold proportion at depth.
13.2.2 Domain Composites
The Inmaculada domain composites gold head assays in Table 13.4 ranged from 3.3 to 5.3 g/t,
while silver head grade ranged from 101 to 244 g/t. The silver-to-gold ratios varied from 24:1 to
46:1.
The samples contained sulfide sulfur in the range 0.4 to 1.04%. Arsenic levels varied from
40 ppm to 370 ppm in domain composites. Mercury levels ranged from 0.1 ppm to 0.2 ppm.
Org nic carbon content was below detection of 0.03% in all domain composites. This is
considered below the limit that would cause preg-robbing in a leach circuit.
Table 13.4 - Domain Composites Head Assays
Domain Domain Domain

Analyte Unit
Composite #1 Composite #2 Composite #3
Au g/t 4.24 3.34 5.26
Ag g/t 101 134 244
As ppm 160 40 370
Corganic % <0.03 <0.03 <0.03
Cu ppm 60 140 448
Hg ppm 0.1 0.2 0.2
Pb ppm 205 535 865
Ssulfide % 0.64 0.40 1.04
PEMN00012-RPT-0001 60
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Domain Domain Domain
Analyte Unit
Composite #1 Composite #2 Composite #3
Zn ppm 666 1,460 1,694
13.3 Sample Preparation
A total of 443 drill core intervals were selected for variability testwork and a total of 736 drill
core composites were selected for composite samples for use in the Inmaculada testwork
program. The half core and quarter core received at ALS Ammtec (Ammtec) were crushed to
<25 mm and a portion split for gold and silver assay.
PEMN00012-RPT-0001 61
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1 Summary

All currency amounts are expressed in United States dollars ($).

1.1 Resources and Reserves Estimate

1.2 Mine Geomechanical Conditions

 Ore and host rock geomechanical characteristics;

1.4 Processing and Metallurgy

Table 1.1 - Bulk Cyanidation Testwork Results

 Primary crushing direct feeding the milling circuit via a stockpile;

 An average throughput of 3,506 t/d for 365 days per year;

1.5 Capital Cost

Table 1.2 - Overall Project Capital Costs by Area

High Voltage Power Supply 13.5

Non Process Plant Infrastructure 36.6

Temporary Facilities 11.5

Grand Total 315

1.6 Operating Cost

Parameter Unit Value

Processing $/t ore milled 25.1

General and Administrative $/t ore milled 8.70

TOTAL $/t ore milled 72.9

1.7 Economic Analysis

Table 1.4 - Overall Project Economic Sensitivity Summary

Pre-tax NPV5% (M$)

Capital Cost 217 181 144

Case 1 (base Operating Cost 224 181 137

Table 1.5 - IMZ’s Attributable Production and Economic Parameters

1.8 Project Implementation Plan

Commence placement of orders for long lead items………………………………….February 2012

Commencement civil works….………………………………………………………………...May 2012

Complete detailed engineering………………………………………………………....December 2012

Commence mechanical installation..………………………………………………….........March 2013

Complete civil works………………………………………………………………………….…May 2013

Commence commissioning…………………………………………………………..…November 2013

1.9 Conclusions and Recommendations

The following are the key conclusions of this report:

The following are the key recommendations of this report:

 The project advance to detailed engineering, procurement and construction.

Table 2.1 - Qualified Persons and Areas of Responsibility

Table 2.2 - Abbreviations and Symbols

Term Abbreviation or Symbol

grams per liter g/L

grams per metric tonne g/t

life of mine LOM

meter per second m/s

meters above sea level masl

meter per second squared m/s2

metric tonnes per day t/d

metric tonnes per hour t/h

miles per hour mph

Million tonnes per year Mt/y

kilometers per hour km/h

mole percent mol %

molecular mass (weight) mol wt

parts per billion ppb

rock mass rating RMR

run of mine ROM

semi-autogenous grinding SAG

unconfined compressive strength UCS