minera tres valles copper project - Mining Data Online

MINERA TRES VALLES COPPER PROJECT

SALAMANCA, COQUIMBO REGION, CHILE

NI 43-101 F1 TECHNICAL REPORT

MINERAL RESOURCE ESTIMATE,

CHLORIDE LEACH PROCESSING, and

DON GABRIEL MANTO PIT EXPANSION

Prepared For

Minera Tres Valles

Sprott Resource Holdings Inc.

Qualified Persons:

Michael G. Hester, FAusIMM

Independent Mining Consultants, Inc.

Gabriel Vera

President, GV Matallurgy

Enrique Quiroga

Q & Q Ltda.

Report Date: March 29, 2018

Effective Date: March 29, 2018

INDEPENDENT MINING CONSULTANTS, INC.

Minera Tres Valles Copper Project i

Salamanca, Coquimbo Region, Chile

March 29, 2018

Technical Report / Form 43-101F1

Date and Signature Page

The effective date of this report is March 29, 2018. See Appendix A for certificates of the

Qualified Persons.

(Signed) “Michael G. Hester” March 29, 2018

Michael G. Hester, FAusIMM Date

(Signed) “Gabriel Vera” March 29, 2018

Gabriel Vera, QP Date

(Signed) “Enrique Quiroga” March 29, 2018

Enrique Quiroga, QP Date


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Table of Contents

1.0 Summary . . . . . . . . . 1

1.1 General . . . . . . . . 1

1.2 Property Description and Ownership . . . . . 1

1.3 Geology and Mineralization . . . . . . 2

1.4 Exploration Status . . . . . . . 3

1.5 Development and Operations . . . . . . 5

1.6 Mineral Resources . . . . . . . 7

1.7 Mineral Reserves . . . . . . . 9

1.8 Conclusions and Recommendations . . . . . 10

2.0 Introduction . . . . . . . . . 12

2.1 Issuer and Terms of Reference . . . . . 12

2.2 Sources of Information . . . . . . 12

2.3 Qualified Persons and Site Visits . . . . . 13

3.0 Reliance on Other Experts. . . . . . . . 13

4.0 Property Description and Location . . . . . . 14

4.1 Property Location . . . . . . . 14

4.2 Land Area and Mining Claim Description . . . . 14

4.3 Agreements and Encumbrances . . . . . 15

4.4 Permit Status . . . . . . . . 16

5.0 Accessibility, Climate, Local Resources, Infrastructure and Physiography . 18

5.1 Access . . . . . . . . . 18

5.2 Climate . . . . . . . . 18

5.3 Local Resources and Infrastructure. . . . . . 18

5.4 Physiography . . . . . . . . 18

6.0 History . . . . . . . . . 19

7.0 Geologic Setting and Mineralization. . . . . . . 22

7.1 Regional Geology . . . . . . . 22

7.2 District Geology. . . . . . . . 22

7.3 Deposit Geology . . . . . . . 27

7.3.1 Papomono . . . . . . . 27

7.3.2 Don Gabriel . . . . . . . 30

7.4 Mineralization . . . . . . . . 32

7.4.1 Papomono . . . . . . . 32

7.4.2 Don Gabriel . . . . . . . 33

8.0 Deposit Types . . . . . . . . . 35

9.0 Exploration . . . . . . . . . 36

9.1 Initial Exploration . . . . . . . 36

9.2 Mine-site Exploration . . . . . . . 36

9.3 District Targets . . . . . . . 37

10.0 Drilling . . . . . . . . . 38


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Table of Contents (Continued)

11.0 Sample Preparation, Analyses and Security . . . . . 42

11.1 Sample Preparation . . . . . . . 42

11.2 Analysis . . . . . . . . 42

11.3 QA/QC Programs . . . . . . . 43

11.4 Sample Security . . . . . . . 43

12.0 Data Verification . . . . . . . . 45

12.1 Don Gabriel . . . . . . . . 45

12.2 Papomono . . . . . . . . 45

13.0 Mineral Processing and Metallurgical Testing . . . . 46

13.1 Acid Heap Leach Process . . . . . . 46

13.1.1 Plant Operation . . . . . . 46

13.1.2 Metallurgical Test Work . . . . . 48

13.1.3 Recovery Model . . . . . . 53

13.1.4 Recovery Curves . . . . . . 54

13.1.5 Acid Leach Recovery Summary . . . . 57

13.2 Chloride Leach Process . . . . . . 59

13.2.1 Chloride Leach Test Program . . . . . 59

13.2.2 Chloride Leach Test Results . . . . . 63

13.2.3 Column and Heap Leach Comparison . . . 66

13.2.4 Impact of Salt Addition in Agglomeration . . . 67

13.2.5 Chloride Presence in Leach Solutions . . . 68

13.2.6 Crushed Ore Screen Size . . . . . 68

13.2.7 Recovery Model . . . . . . 68

13.3.8 Copper Recovery Curves . . . . . 70

13.3.9 Summary of Chloride Leach . . . . . 72

14.0 Mineral Resource Estimates . . . . . . . 74

14.1 Mineral Resource . . . . . . . 74

14.2 Description of the Block Models . . . . . 81

14.2.1 Don Gabriel . . . . . . . 81

14.2.2 Papomono . . . . . . . 101

15.0 Mineral Reserve Estimates . . . . . . . 133

16.0 Mining Methods . . . . . . . . 134

16.1 Don Gabriel . . . . . . . . 134

16.1.1 Dilution and Ore Loss . . . . . . 134

16.1.2 Slope Angles . . . . . . . 134

16.1.3 Economic Parameters . . . . . . 134

16.1.4 Mining Phases . . . . . . . 136

16.1.5 Mine Production Schedule . . . . . 145

16.1.6 Waste Storage Facilities . . . . . 154

16.1.7 Mining Equipment . . . . . . 157

16.2 Papomono and Don Gabriel Veins. . . . . . 157


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Table of Contents (Continued)

17.0 Recovery Methods . . . . . . . . 158

17.1 Current Process Description . . . . . . 158

17.2 Historic Plant Performance . . . . . . 160

17.3 Chloride Leach Process Description . . . . . 162

17.4 Upgrades to Existing Plant. . . . . . . 164

17.5 Power and Water Requirements . . . . . 165

18.0 Project Infrastructure . . . . . . . . 166

18.1 Water, Power, Roads and Land . . . . . 166

18.2 Plant Infrastructure . . . . . . . 167

18.3 Mine Infrastructure . . . . . . . 168

19.0 Market Studies and Contracts . . . . . . 170

20.0 Environmental Studies, Permitting and Social or Community Impact . 172

20.1 Permits and Environmental Licenses . . . . . 172

20.1.1 RCA 012 Manquehua Prospection Tunnel . . . 172

20.1.2 RCA 283 Manquehua Prospection Tunnel Modification . 172

20.1.3 RCA 265 MTV Project . . . . . 173

20.2 Land Easements . . . . . . . 173

20.3 Water Rights and Use . . . . . . . 173

20.4 Community Relations and Social Licenses . . . . 175

20.5 Health and Safety Performance . . . . . 176

20.6 Mine Closure . . . . . . . . 176

21.0 Capital and Operating Costs . . . . . . . 179

21.1 Capital Costs . . . . . . . . 179

21.2 Operating Costs . . . . . . . 179

22.0 Economic Analysis . . . . . . . . 179

22.1 Economic Results . . . . . . . 179

22.2 Sensitivity Analysis . . . . . . . 180

22.3 Royalties . . . . . . . . 181

22.4 Tax Considerations . . . . . . . 181

23.0 Adjacent Properties . . . . . . . . 183

24.0 Other Relevant Data and Information . . . . . . 183

25.0 Interpretation and Conclusions . . . . . . 184

26.0 Recommendations . . . . . . . . 185

27.0 References . . . . . . . . . 187

Appendix A. Certificates of Qualified Persons . . . . . 189

Appendix B. Mining Claims . . . . . . . . 194


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List of Tables

1-1 Mineral Resources . . . . . . . . 7

1-2 Mineral Reserves . . . . . . . . 9

1-3 Recommendations for Ongoing Work . . . . . 11

10-1 Summary of Drilling Data . . . . . . . 39

13-1 Copper Ore Crushed and Stacked in the MTV Plant since Startup . . 46

13-2 Origin of Treated Copper Ore between 2010 and October 31, 2017 . . 47

13-3 Copper Recovery Based on Copper Cathode Production . . . 47

13-4 Estimated Recoverable Copper in the Plant on October 31, 2017 . . 48

13-5 Corrected Copper Recovery as of October 31, 2017 . . . . 48

13-6 Copper Head Grades for SGS Column Tests . . . . . 49

13-7 Analysis of Impurities in PLS (September 2017 Composite) . . . 50

13-8 Copper Recovery for the First 3m of the SGS Column Tests (Columns 1-6) 50

13-9 Copper Recovery for the 3m SGS Column Tests (Columns 7-12) . . 50

13-10 Copper Recovery in the Top Meter of the 6m SGS Column Tests (Cols 1-6) 51

13-11 Copper Recovery in the Top Meter of the 3m SGS Column Tests (Cols 7-12) 51

13-12 Head and Tailings Copper Grades for MTV Heap Tests . . . 52

13-13 Head Copper Grades for MTV Column Tests . . . . 52

13-14 Copper Recovery for Heap Tests at ~130 Days of Operation . . 52

13-15 Copper Recovery for Column Tests at ~130 Days of Operation . . 53

13-16 Estimated Material Distribution and Grades for Recovery Model. . . 53

13-17 Estimated Copper Recovery for Papomono and Don Gabriel at 300 Days . 54

13-18 Estimated Combined Copper Recovery for Papomono and Don Gabriel . 54

13-19 Comparison of Copper Recovery between Test Conditions and Extrapolated

to 300 Days . . . . . . . . . 56

13-20 Don Gabriel Column Leach Test Conditions – Chloride Leaching. . . 60

13-21 Papomono Column Leach Test Conditions – Chloride Leaching. . . 61

13-22 Don Gabriel and Papomono Heap Leach Test Conditions – Chloride Leaching. 62

13-23 Don Gabriel Column Test Results – Chloride Leaching. . . . 63

13-24 Papomono Column Test Results – Chloride Leaching. . . . 64

13-25 Average of Don Gabriel and Papomono Column Test Results – Chloride Leach. 65

13-26 Don Gabriel and Papomono Heap Test Results – Chloride Leaching. . 66

13-27 Don Gabriel and Papomono Heap and Column Test Results Comparisons

- Chloride Leaching . . . . . . . . 67

13-28 Preliminary Sulfation Test Results . . . . . . 68

13-29 Estimated Recovery for Papomono and Don Gabriel under Chloride Leach

Conditions at 120, 140, 160, and 180 Days Leaching . . . 69

14-1 Mineral Resource . . . . . . . . 74

14-2 Economic Parameters for Mineral Resource Estimates . . . 76

14-3 Don Gabriel Model Rock Codes . . . . . . 83

14-4 Summary Statistics of Assays and Composites in DG Manto-Total Copper 88

14-5 Summary Statistics for Assays in Don Gabriel Veins . . . 91


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List of Tables (Continued)

14-6 Summary Statistics for Composites in Don Gabriel Veins . . . 92

14-7 Specific Gravity and Bulk Density for Don Gabriel Units . . . 99

14-8 Mineral Resource for Don Gabriel Veins – 0.64% CuT . . . 100

14-9 Papomono Rock Types . . . . . . . 101

14-10 IMC Grade Shells . . . . . . . . 102

14-11 Cap Grades for Papomono Deposits – Assays . . . . 109

14-12 Summary Statistics of Assays in Grade Shells . . . . 110

14-13 Summary Statistics of Composites in Grade Shells . . . . 111

14-14 Ratio of Soluble Copper to Total Copper by Oxide vs Sulfide Dominant . 113

14-15 Grade Estimation Parameters for Copper . . . . . 122

14-16 Specific Gravity and Bulk Density for Papomono Units . . . 129

15-1 Don Gabriel Mineral Reserve . . . . . . . 133

16-1 Don Gabriel Economic Parameters for Pit Design . . . . 135

16-2 Summary of Mining Phases – Salt Leach Case . . . . 137

16-3 Mine Production Schedule . . . . . . . 146

16-4 Filling Curve for Don Gabriel Waste Storage . . . . 154

17-1 Historic Summary of Crushing Plant Throughput . . . . 161

17-2 Historic Cathode Production . . . . . . . 161

18-1 Mining Equipment Owned by MTV . . . . . . 170

20-1 Land Ownership and Easements . . . . . . 173

20-2 Accident Index. Data from 12/2015 to 12/2016 . . . . 176

20-3 Commitments for Closure and Respective Resolutions . . . 177

20-4 Closure Costs . . . . . . . . . 178

22-1 Economic Results – US Dollars – Copper Price of $2.75/lb . . . 182

22-2 Sensitivity Analysis . . . . . . . . 183

26-1 Recommendations for Ongoing Work . . . . . 185


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List of Figures

1-1 Project Location . . . . . . . . 2

1-2 Location of Papomono Mineral Deposits . . . . . 4

4-1 Project Location . . . . . . . . 14

4-2 Property Map . . . . . . . . . 17

7-1 The Cretaceous Belt in Chile . . . . . . . 23

7-2 Geologic Map – Illapel District . . . . . . 25

7-3 Regional Map of MTV Project . . . . . . 26

7-4 Papomono Stratigraphic Units . . . . . . 27

7-5 Papomono Structures . . . . . . . . 29

7-6 Don Gabriel Stratigraphy . . . . . . . 30

7-7 Don Gabriel Litho-Structural Map . . . . . . 31

8-1 Location of Stratabound Cu-Ag Deposits in Chile . . . . 35

10-1 MTV Drilling by Year . . . . . . . 38

10-2 Distribution of Drilling by Area . . . . . . 39

10-3 Don Gabriel Drilling . . . . . . . . 40

10-4 Papomon Drilling and Deposit Areas . . . . . . 41

11-1 Procedures for Sample Security as Documented by Snowden . . 44

13-1 Copper Recovery for Heap and Column Tests for Papomono . . 55

13-2 Copper Recovery for Heap and Column Tests for Don Gabriel . . 56

13-3 Copper Recovery for Don Gabriel and Papomono Based on the Copper

Recovery Models . . . . . . . . 57

13-4 Copper Recovery for Don Gabriel Columns Tests under Chloride Leaching

Conditions . . . . . . . . . 70

13-5 Copper Recovery for Papomono Column Tests under Chloride Leaching

Conditions . . . . . . . . . 70

13-6 Copper Recovery for Don Gabriel Column Tests, Unscaled and under

Chloride Leaching Conditions . . . . . . 71

13-7 Copper Recovery for Papomono Column Tests, Unscaled and under

Chlorine Leaching Conditions . . . . . . 71

13-8 Copper Recovery for Don Gabriel and Papomono under Chloride Leaching

Conditions . . . . . . . . . 72

14-1 Don Gabriel Manto Resource Cone Shell. . . . . . 78

14-2 PPM North Resource Cone Shell . . . . . . 79

14-3 Cumbre Resource Cone Shell . . . . . . . 80

14-4 Don Gabriel Rock Types on Section 10 . . . . . 83

14-5 Don Gabriel Veins . . . . . . . . 84

14-6 Probability Plot of Assays in Don Gabriel Manto – Total Copper . . 86

14-7 Probability Plot of 5m Composites in Don Gabriel Manto – Total Copper . 86

14-8 Oxide vs Sulfide Dominant Assays in Don Gabriel Manto . . . 87

14-9 Probability Plot of Assays in Don Gabriel Veins – Total Copper . . 89

14-10 Probability Plot of 5m Composites in Don Gabriel Veins – Total Copper . 89

14-11 Oxide vs Sulfide Dominant Assays in Don Gabriel Veins . . . 90

14-12 Don Gabriel Manto Variogram – Along Strike . . . . 94


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List of Figures (Continued)

14-13 Total Copper Grades for Don Gabriel Manto for Section 10. . . 95

14-14 Probability Plot of Average Distance to Nearest 4 Holes – DG Manto . 97

14-15 Resource Classification for Don Gabriel Manto on Section 10. . . 98

14-16 Massivo Deposit and Drilling . . . . . . . 103

14-17 Massivo Deposit – Rock Types and Grade Shell on Section 30 . . 104

14-18 PPM South Deposit and Drilling . . . . . . 105

14-19 PPM South Deposit – Rock Types and Grade Shell on Section 18 . . 106

14-20 Cumbre Deposit and Drilling . . . . . . . 107

14-21 Cumbre Deposit – Rock Types and Grade Shell on Section 34 . . 108

14-22 Probability Plot of Assays in Massivo Grade Shell – Total Copper . . 112

14-23 Probability Plot of Assays in PPM South Grade Shell – Total Copper . 112

14-24 Oxide vs Sulfide Dominant Assays in Massivo . . . . 114

14-25 Oxide vs Sulfide Dominant Assays in PPM South . . . . 115

14-26 Massivo Copper Variogram – Steep Zone – Along Strike . . . 117

14-27 Massivo Copper Variogram – Steep Zone – Down Dip . . . 118

14-28 PPM South/Connection Copper Variogram – Along Strike . . . 119

14-29 PPM South/Connection Copper Variogram – Down Dip . . . 120

14-30 Total Copper on Massivo Cross Section 30 . . . . . 123

14-31 Total Copper on PPM South Cross Section 18 . . . . 124

14-32 Probability Plot of Average Distance to Nearest 3 and 4 Holes – Massivo . 125

14-33 Probability Plot of Average Distance to Nearest 3 and 4 Holes – PPM South 126

14-34 Resource Classification on Massivo Section 36 . . . . 127

14-35 Resource Classification on PPM South Section 18 . . . . 128

14-36 Oxide vs Sulfide Dominant Blocks for Massivo Section 36 . . . 130

14-37 Oxide vs Sulfide Dominant Blocks for Mantos Connection Section 36 . 131

16-1 Location of the TetraTech Mining Phases . . . . . 138

16-2 Mining Phase 2 . . . . . . . . 139

16-3 Mining Phase 3 . . . . . . . . 140

16-4 Mining Phase 4 . . . . . . . . 141

16-5 Mining Phase 5 . . . . . . . . 142

16-6 Mining Phase 6 . . . . . . . . 143

16-7 Mining Phase 7 . . . . . . . . 144

16-8 End of 2018 . . . . . . . . . 147

16-9 End of 2019 . . . . . . . . . 148

16-10 End of 2020 . . . . . . . . . 149

16-11 End of 2021 . . . . . . . . . 150

16-12 End of 2022 . . . . . . . . . 151

16-13 End of 2023 . . . . . . . . . 152

16-14 End of 2024 . . . . . . . . . 153

16-15 Don Gabriel Waste Storage Facility . . . . . . 155

16-16 Final Don Gabriel Pit and Waste Storage Facility . . . . 156

17-1 Crusher Flowsheet . . . . . . . . 158

17-2 Flowsheet for Agglomerator and Heap Leaching . . . . 159


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List of Figures (Continued)

17-3 Flowsheet for SXEW Plant . . . . . . . 160

18-1 Main Infrastructure in MTV Mine/Plant Complex . . . . 166

18-2 Satellite Image Showing Main Infrastructure in the Quilmenco Property . 167

18-3 Infrastructure of Papomono Mine . . . . . . 169

20-1 Water Rights in MTV . . . . . . . . 174

20-2 MTV Historic Average Water Consumption per Tonne of Ore. . . 175

20-3 Foundation MTV Projects, 2015 . . . . . . 175


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1.0 Summary

1.1 General

The purposes of this Technical Report are as follows:

Develop an NI 43-101 compliant Mineral Resource estimate for the Don Gabriel and

Papomono mineral deposits,

Present the results of a Preliminary Feasibility Study for the implementation of chloride

media leaching, and

Present a Feasibility Study for the expansion of the Don Gabriel Manto open pit.

This work commenced during September 2017 and was completed during March 2018.

1.2 Property Description and Ownership

Minera Tres Valles SpA (“MTV”) is located in the southern part of the Coquimbo Region, in the

central portion of Chile. Figure 1-1 shows the locations. It corresponds to the narrowest part of

the country, with only 90km from the coast to the Argentine border. The mine-plant complex is

located around the borderline between the counties of Salamanca and Illapel, both of which are

part of the Choapa Province.

The mines are located between latitude 31o39′50″ S and 31

o42′20″ S and longitude 70

o55′00″ W

and 70o57′35″ W, while the plant is around the coordinates 31

o43′43″ S and 71

o00′45″ W.

There are two types of mining concessions in Chile, exploration concessions and exploitation

concessions. With exploration concessions, the titleholder has the right to carry out all types of

exploration activities within the area of the concession. Exploration concessions can overlap, but

only the titleholder with the earliest dated exploration concession over the area as indicated by

their identification (ROL) number, can exercise these rights. For each exploration concession,

the titleholder must pay an annual fee per hectare to the Chilean Treasury. Exploration

concessions have duration of two years. At the end of this period, the concession may be

renewed for 2 more years, in which case at least 50 % of the surface area must be renounced; or

converted, in total or in part, into exploitation concessions. With exploitation concessions, the

titleholder has the right to explore and exploit the minerals located within the concession area

and to take ownership of the extracted minerals. Exploitation concessions can overlap, but only

the titleholder with the earliest dated exploitation concession over the area can exercise these

rights. The titleholder must pay an annual fee to the Chilean Treasury of approximately 1/10 of

the Unidad Tributaria Mensual (“UTM”), at this time about US$ 7.88 per hectare. Exploitation

concessions are of indefinite duration, and therefore do not expire. Concession owners do not

necessarily have surface rights to the underlying land; however, they do have the right to explore

or exploit the concession.

Figure 4-2 of the Technical Report shows the current status of the mining claims. A list of the

claims is included in the appendix of the Technical Report. MTV has the mining rights to 229

exploitation concessions (46,378 ha), 215 of which are fully constituted and registered (44,185




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ha) and 14 (2,193 ha) that are under administrative process, waiting perfection, performing

topographic survey, or are “second floor” covering of previous MTV concessions in order to

close small gaps (“demasías”). All relevant areas in the mine and the plant are fully covered and

rights-assured by exploitation definitive concession (in Chile the exploitation concessions have

no term). There are three concessions with partial superposition with third-parties, none of them

relevant for the current exploitation of the project.

Figure 1-1. Project Location, MTV 2018

1.3 Geology and Mineralization

As Figure 1-1 shows the MTV Project consists of two main deposit areas about 5km apart. The

Don Gabriel area hosts the Don Gabriel Manto and Don Gabriel Vein deposits. The Papomono

(“PPM”) area consists of seven known deposits: Massivo, Cumbre, Mantos Connection, PPM

South, Mantos North, PPM North, and Epithermal. Figure 1-2 shows the relative location of the

various PPM deposits. Mantos North and the Cumbre pit were heavily exploited during the Vale

tenure.

MTV is located in the prolific Cretaceous belt of Chile, which hosts a vast amount of copper

deposits, ranging from small to world-class size. This belt presents a variety of deposit types, the

most common being the IOCG (Iron Oxide Copper Gold) and the Cu-Ag stratabound, also called

“mantos”. The first type of mineralization, IOCG, is more common in the Atacama Region and

throughout the north of Chile. These deposits can reach gigantic sizes, such as Candelaria,

which in 21 years has produced 3.6Mt of payable copper. On the other hand, the stratabound,

“manto-type” deposits are more common from Atacama Region to the south. The largest

examples are El Soldado and Michilla. There are also some Cu-Au porphyries in the Cretaceous

belt, which the largest is Andacollo. Finally, minor skarn and Cu-Au veins are found all over the

belt.

MTV is located in a regional horst-graben system, formed by a 10 km wide corridor of volcanic

rocks, and bordered by km-scale N-S faults. To the west and east intrusive granodioritic to

dioritic rocks prevail, which are from the Early Cretaceous age Illapel Super-Group unit. The




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volcanic rock forms a thick package of flat layering or gently dipping beds of lava, pyroclastic

and epiclastic rocks from middle to upper Cretaceous.

Lithostratigraphically, the volcanic rocks belong to two main units. The slopes of the valleys

form pediments of the Quebrada Marquesa Formation, from the Barremian-Albian age. In the

Salamanca-Illapel region the predominance is the Quellen Member, which is characterized by an

intercalation of andesitic lava, volcanic breccias and agglomerates, with subordinate sandstones.

Overlying it, in unconformity relation, is the Viñita Formation, of Upper Creataceous age. It is

generally horizontal bedding and this attitude is demonstrated by characteristic plateaus

(tableland) geomorphologies like Llanos de Talhuen, between Choapa and Chalinga rivers and

Cerro Carrizo-Los Linderos, north of Chalinga Valley. Its limits also form cliffs and

escarpments. The basal zone is predominately oxidized levels of sandstones and conglomerates

(Sta. Virginia Mb) while near the top lava and volcanoclastics dominates (Rio Manque Mb).

Besides the obvious geomorphologic distinction, the Viñita Fm. stands out by its reddish colors,

contrasting with dominant gray tones from the Quebrada Marquesa Formation.

Remnants of Tertiary tuffs can be seen forming isolated outcrops in the upper parts of the plateau

while quaternary coverage fills the E-W orientated main valleys.

At MTV, the Quebrada Marquesa Fm is the main host rock for stratabound copper

mineralization, and in the Viñita Fm only some skarns, minor veins or manganese beds are

found.

The concession block is outlined by two main regional faults: Manquehua and Llimpo. These

faults can be easily identified when producing the sharp contact between intrusive and volcanic

rocks but can also be clearly seen in aeromagnetic surveys.

In district scale most of the known Manto-type deposits are close to the west regional fault,

called the Manquehua Fault. The Llimpo Fault, to the east, is less evident and only skarn or vein

copper deposits have been found to date.

1.4 Exploration Status

There has been no significant exploration since the Vale tenure. Currently, the main

development priorities are the expansion of production from the Don Gabriel Manto open pit,

and conducting a pre-feasibility study of the Papomono (“PPM”) Massivo to support a

development decision.

Once these priorities are met, IMC anticipates additional exploration drilling in known deposits,

including the Don Gabriel Veins, the Epithermal Vein, Cumbre, and others to upgrade inferred

mineral resource to measured and indicated mineral resource.

There are also additional known targets to examine on the MTV claim block. Most of these are

identified through geophysical signatures.




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Figure 1-2. Location of Papomono Mineral Deposits, IMC 2018




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1.5 Development and Operations

MTV is a grassroots discovery made by Vale in 2005. After assessing some opportunities, a 3.5-

year term purchase option contract was signed in March 2005 with Minera Werenfried for a

block of 25,000 ha of mining properties in the Choapa Province. Field reconnaissance identified

several albite-rich rocks with chalcocite and copper oxide mineralization that was being

exploited by artisanal miners. The high concentration of copper occurrences aligned through a 6

km structure in the Manquehua Valley led to the interpretation of potential significant mineral

deposits lying underneath.

After a few years of exploration, drilling, and evaluation, the project was approved by Vale’s

board for construction in 2008, triggering the purchase of 90% of the asset from Minera

Werenfried. Total investment on the project during project and operation stages was US$ 241

million. The designed crushing and SX-EW plant had a design capacity of 5,500 tpd ore and

50.7 tpd copper cathodes respectively.

In December 2010 the plant was inaugurated and in February 2011 the first cathodes were

produced. The plant feed was from Papomono underground, the Cumbre open pit and Enami-

purchased ore. In 2012 a third-party ore purchase system was implemented, sourcing ore from

local miners.

The road to Don Gabriel was finished in June 2012, allowing the open pit to start production.

After several adjustments and improvements in the crushing plant, maximum capacity was

reached during the second half of 2012, and eventually surpassed 5,600 tpd during 10 months. A

monthly production of 1,330 tonnes of cathodes was reached in November 2012.

At the end of 2012 Vale decided to sell MTV, among other international assets. New projects

were frozen from this moment on, except for the quaternary crusher, which was already being

built and was designed to reduce the size of crushed material to ¼”, mainly targeting future Don

Gabriel chalcocite material. The new crusher was commissioned in August 2013.

The selling process was completed in December 2013, when the Vecchiola Group acquired

100% of the asset. Soon after, Vecchiola decided to shut down the mines, downsize its

workforce and focus initially on the tolling process in order to make the turnaround while re-

evaluating the whole operation. In 2015 a reassessment of the reserve base, mining methods and

cost effectiveness was performed, and in October small-scale production resumed at on-site

deposits in a trial stage and a new long-term mine plan was established. During 2016 a set of

metallurgical tests were performed in order to test the potential increase in recovery using

oxidant agents. Presently, only one daily shift is operating, occupying around 30% of the plant

capacity.

In October 2017 Vecchiola sold 70% of the common stock to SRH Chile SpA, a subsidiary of

Sprott Resource Holdings Inc., a Canadian natural resources company listed on the Toronto

Stock Exchange.




March 29, 2018


Between December 2010 and October 2017 MTV has mined and processed 4.22 million tonnes

of ore at an average grade of 0.90% Cu. Considering the external purchases and tolling, a total

of 6.14 million tonnes averaging 1.22% Cu was processed in its plant, resulting in 59,991 tonnes

of copper cathodes.




March 29, 2018


1.6 Mineral Resources

Table 1-1 presents the mineral resource for the Minera Tres Valles Copper Project.

Table 1-1. Mineral ResourceMining CuT CuT CuS CuCn CuR Copper

Resource Class Method Cutoff(%) Ktonnes (%) (%) (%) (%) (klbs)

Measured Mineral Resource

Don Gabriel Manto OP 0.20 983 0.824 0.128 0.591 0.105 17,857

Don Gabriel Veins UG 0.64 0 0.000 0.000 0.000 0.000 0

PPM Massivo UG 0.34 2,449 1.941 0.466 1.339 0.136 104,796

PPM Cumbre OP 0.19 266 0.485 0.069 0.378 0.037 2,844

PPM Cumbre UG 0.34 0 0.000 0.000 0.000 0.000 0

PPM Mantos Connection UG 0.59 262 1.266 0.414 0.667 0.185 7,312

PPM South UG 0.58 634 1.275 0.244 0.949 0.082 17,821

Epithermal UG 0.65 0 0.000 0.000 0.000 0.000 0

PPM North OP 0.19 102 0.956 0.584 0.222 0.150 2,150

North Manto UG 0.58 834 1.082 0.498 0.522 0.063 19,894

Measured Mineral Resource 5,530 1.416 0.366 0.939 0.111 172,674

Indicated Mineral Resource

Don Gabriel Manto OP 0.20 5,476 0.828 0.110 0.625 0.093 99,959


PPM Massivo UG 0.34 891 1.623 0.428 1.082 0.113 31,881

PPM Cumbre OP 0.19 2,388 0.540 0.096 0.388 0.056 28,429

PPM Cumbre UG 0.34 351 0.478 0.040 0.414 0.024 3,699

PPM Mantos Connection UG 0.59 1,287 1.017 0.325 0.466 0.227 28,856

PPM South UG 0.58 989 0.998 0.319 0.583 0.096 21,760

Epithermal UG 0.65 509 0.980 0.338 0.323 0.320 10,997PPM North OP 0.19 250 0.999 0.571 0.293 0.135 5,506

North Manto UG 0.58 633 0.967 0.441 0.459 0.067 13,495

Indicated Mineral Resource 12,774 0.868 0.200 0.561 0.108 244,581

Meas/Ind Mineral Resource



PPM Massivo UG 0.34 3,340 1.856 0.456 1.270 0.130 136,676

PPM Cumbre OP 0.19 2,654 0.534 0.093 0.387 0.054 31,273

PPM Cumbre UG 0.34 351 0.478 0.040 0.414 0.024 3,699


PPM South UG 0.58 1,623 1.106 0.290 0.726 0.091 39,581


North Manto UG 0.58 1,467 1.032 0.473 0.495 0.065 33,389

Meas/Ind Mineral Resource 18,304 1.034 0.250 0.675 0.109 417,255Inferred Mineral Resource


Don Gabriel Veins UG 0.64 2,020 1.331 0.137 1.043 0.151 59,273

PPM Massivo UG 0.34 22 2.643 0.415 1.977 0.251 1,282PPM Cumbre OP 0.19 537 0.664 0.167 0.416 0.081 7,861

PPM Cumbre UG 0.34 298 0.530 0.066 0.426 0.038 3,482


PPM South UG 0.58 111 0.947 0.399 0.379 0.168 2,317

Epithermal UG 0.65 223 1.011 0.476 0.207 0.328 4,970

PPM North OP 0.19 13 2.903 0.496 2.227 0.180 832

North Manto UG 0.58 37 1.387 0.702 0.387 0.298 1,131

Inferred Mineral Resource 3,457 1.108 0.188 0.770 0.149 84,408




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The mineral resource estimate is as of January 1, 2018 and is inclusive of the mineral reserves.

Measured and indicated mineral resources amount to 18.3 million tonnes at 1.034% total copper

(“CuT”) for 417.3 million contained pounds. Inferred mineral resource is an additional 3.46

million tonnes at 1.108% total copper for 84.4 million contained pounds. The table also shows

grades for acid soluble copper (“CuS”), cyanide soluble copper (“CuCn”), and residual copper

(“CuR”) since these components are used for metal recovery calculations.

To establish “reasonable prospects for eventual economic extraction” as required by NI 43-101,

estimated unit costs for mining, processing, G&A, and solvent extraction/electrowinning

(“SXEW”), as well as process recoveries have been developed to calculate appropriate cutoff

grades for mining. The mineral resources are based on a copper price of US$ 3.30 per pound of

finished copper.

Process costs and recoveries are based on crushing and heap leaching with sulfuric acid. It is

also planned that salt will be added to the leach solutions to add chlorine ions to assist oxidation

and dissolution, particularly of the chalcocite. This has been termed the “salt leach case or

chloride leach case”. With the salt leach process, the average copper recovery is estimated at

about 87% for the Don Gabriel Manto and Veins. The copper recovery for the various PPM

deposits range from 85% for the Epithermal vein to 90% for Massivo, based on variations in the

acid soluble, cyanide soluble, and residual copper components of the resource. The crushing,

agglomeration, and leaching costs are estimated at $9.73 per tonne and SX-EW costs are

estimated at $0.19 per pound copper.

It is assumed that the Don Gabriel Manto, PPM North and a portion of Cumbre will be mined by

open pit methods by a mining contractor. Estimated contract mining costs are $2.35 and $2.15

per tonne for ore and waste respectively based on a quotation from a recognized Chilean contract

mining company. This estimate includes the cost for geology, mine engineering, and ore control.

The ore haulage cost is estimated as $2.21 per tonne for Don Gabriel and $1.76 for Papomono,

and is based on a contractor quotation. The one-way haulage distances are about 17km from

Don Gabriel and 12km from Papomono.

The mineral resources for Don Gabriel Manto, PPM North and Cumbre are tabulated inside

Lerchs-Grossman (LG) shells run with the economic and recovery parameters. Measured,

indicated, and inferred mineral resources were allowed to contribute to the economics to develop

the shells.

The estimated internal cutoff grades for the Don Gabriel Manto, PPM North, and Cumbre pits

are 0.20%, 0.19% and 0.19% total copper respectively. Internal cutoff grade applies to blocks

that have to be removed from the pit, so mining is a sunk cost. The blocks only have to pay

processing, ore haulage, G&A, SXEW, and the $0.20 differential between ore and waste mining

cost. The resources for the open pits on Table 1-1 are based on internal cutoff grade.

For the underground deposits proposed underground mining methods were selected for each

deposit and approximate mining costs for the various methods estimated. The proposed methods

and costs are:




March 29, 2018


Block Caving Massivo, Cumbre $8.40 per ore tonne

Front Caving PPM South, Connection, North Manto $22.00 per ore tonne

Sub-level Stoping DG Veins, Epithermal $24.00 per ore tonne

There is a portion of Cumbre beneath the potential open pit that might be amenable to

underground mining. Estimated breakeven cutoff grades for each underground deposit are

shown on Table 1-1.

The mineral resources are in-situ estimates. IMC has not included any dilution or ore loss

assumptions in the estimates. This will be done during the evaluation of potential mineral

reserves.

The mineral resources are classified in accordance with the Canadian Institute of Mining,

Metallurgy and Petroleum ("CIM") "CIM Definition Standards - For Mineral Resources and

Mineral Reserves" adopted by the CIM Council (as amended, the "CIM Definition Standards") in

accordance with the requirements of National Instrument 43-101 "Standards of Disclosure for

Mineral Projects" ("NI 43-101"). Mineral reserve and mineral resource estimates reflect the

reasonable expectation that all necessary permits and approvals will be obtained and maintained.

There is no guaranty that any of the mineral resources will be converted to mineral reserve.

There is also no guaranty that any of the inferred mineral resources will be upgraded to measured

or indicated mineral resource or to mineral reserve.

IMC does not believe that there are significant risks to the mineral resource estimates based on

environmental, permitting, legal, title, taxation, socio-economic, marketing, or political factors.

The project is in a jurisdiction friendly to mining and has operated in the past and is currently

operating at a low level of production. The most significant risks to the mineral resource are

related to economic parameters such as prices lower than forecast, recoveries lower than

forecast, or costs higher than the current estimates. There could also be geologic risk if

additional drilling reduces the current resource estimates or results in more erratic deposit

geometries that prove difficult to mine.

1.7 Mineral Reserves

Table 1-2 presents the mineral reserve for the Don Gabriel Manto. The proven and probable

mineral reserve amounts to 5.2 million tonnes at 0.814% total copper for 92.7 million contained

copper pounds. Recoverable copper is estimated at 80.5 million pounds based on an average

recovery of 86.9%. The mineral reserve is effective as of January 1, 2018.

Table 1-2. Don Gabriel Mineral Reserve

Cont. Payable

CuT CuS CuCn CuR Copper Copper

Ktonnes (%) (%) (%) (%) (klbs) (klbs)

Mineral Reserve

Proven Mineral Reserve 898 0.800 0.127 0.572 0.100 15,827 13,749

Probable Mineral Reserve 4,270 0.817 0.110 0.615 0.092 76,871 66,782

Prov/Prob Mineral Reserve 5,168 0.814 0.113 0.607 0.094 92,698 80,531




March 29, 2018


The mineral reserve is based on an open pit mine plan and mine production schedule developed

by IMC at cutoff grade of 0.25% total copper. The mineral reserve is based on a copper price of

US$ 2.75 per pound. Measured mineral resource in the mine production schedule was converted

to proven mineral reserve, and indicated mineral resource was converted to probable mineral

reserve. Inferred mineral resources were treated as waste. Ore loss and dilution assumptions are

also incorporated into the estimate.

The mineral reserves are classified in accordance with the Canadian Institute of Mining,





Company's reasonable expectation that all necessary permits and approvals will be obtained and

maintained.

IMC does not believe that there are significant risks to the mineral reserve estimate based on





forecast, or costs higher than the current estimates. The Don Gabriel mineral reserve also

assumes a positive preliminary feasibility study and production decision for the Papomono

Massivo deposit. Some of the key economic parameters depend on higher production rates than

the Don Gabriel pit will provide by itself.

1.8 Conclusions and Recommendations

The goal of this Technical Report was to present an NI 43-101 compliant Mineral Resource

estimate for all the Don Gabriel and Papomono mineral deposits, a Preliminary Feasibility Study

for the implementation of chloride media leaching, and a Feasibility Study for the expansion of

the Don Gabriel Manto open pit, for the MTV property located near Salamanca, Chile. The

highlights for these items are summarized as follows:

Updated Mineral Resource Estimate

Total measured and indicated mineral resource of 18.3 million tonnes at 1.03% CuT

containing 417 million pounds of copper.

Total inferred mineral resource of 3.5 million tonnes at 1.11% CuT containing 84.4

million pounds of copper.

Salt Leach Preliminary Feasibility Study

Potential to increase copper recoveries by 10%, up to a 40% reduction in the leaching

cycle time, and up to 40% reduction in sulfuric acid consumption.




March 29, 2018


Estimated capital cost of US$6.9 million, which includes the activities from detailed

engineering to the end of construction.

Approximately 11 months to implement.

Less than two year payback.

Don Gabriel Manto Feasibility Study

Almost triples production from the Don Gabriel Manto open pit.

Mine plan based on Mineral Reserves of 5.17 million tonnes at 0.81% CuT at a copper

cut-off grade of 0.25%.

Produce approximately 14 million pounds of copper per year over a six-year reserve life.

The expansion could commence as early as the 2nd

quarter of 2018.

The Mineral Reserves and Mineral Resource estimates for the MTV property are effective as of

January 1, 2018.

IMC recommends the following work to advance the MTV project:

A Preliminary Feasibility Study should be conducted for the Papomono Massivo deposit

to develop additional mineral reserves and begin exploitation of the deposit.

A Preliminary Economic Analysis should be conducted for Cumbre, PPM South, Mantos

Connection, North Mantos, PPM North, Epithermal, and Don Gabriel veins to define

possible mining methods and additional drilling and studies that are required to upgrade

the mineral resources to mineral reserves.

The Don Gabriel pit expansion should commence with stripping in phases 4 and 5.

The plant should be upgraded to accommodate the salt leaching process.

Table 1-3 shows the estimated costs for these items, which amounts to US$ 13.1 million.

Table 1-3. Recommendations for Ongoing Work

Cost (US$x1000)

Papomono Massivo Preliminary Feasibility Study $292

Preliminary Economic Analysis – Additional Deposits $135

Don Gabriel Pit Expansion – Waste Stripping $5,740

Upgrade Plant to Chloride Leach Process $6,898

TOTAL $13,065

The recommendation to commence the expansion of the Don Gabriel pit is based on the

economic analysis presented in the Technical Report. The cost is based on an estimate of 2.67

million tonnes of pre-strip waste during 2018 at the unit cost of $2.15 per tonne. Phase 5

stripping is expected to commence very soon after the start of phase 4 stripping, and it therefore

not contingent upon it.

The economic analysis also indicates the plant upgrade to the chloride leach process can be

justified based on Don Gabriel recovery results alone.




March 29, 2018


2.0 Introduction

2.1 Issuer and Terms of Reference

This Technical Report is issued to Sprott Resource Holdings Inc. (“SRHI”) and their subsidiaries

SRH Chile SpA and Minera Tres Valles SpA (“MTV”). SRHI owns 70% of the common shares

of MTV. This report was prepared by Independent Mining Consultants Inc. (“IMC”) of Tucson,

Arizona, USA, and Propipe S.A. (“Propipe”) of Chile.

The purposes of this Technical Report are as follows:

Develop an NI 43-101 compliant Mineral Resource estimate for all the Don Gabriel and

Papomono mineral deposits,

Present the results of a Preliminary Feasibility Study for the implementation of chloride

media leaching, and

Present a Feasibility Study for the expansion of the Don Gabriel Manto open pit.

This work commenced during September 2017 and was completed during March 2018.

IMC’s scope of work for the project is summarized as follows:

Audit the drillhole databases for the Don Gabriel and Papomono deposit areas,

Develop mineral resource block models for the two Don Gabriel, and seven Papomono

mineral deposits,

Estimate NI 43-101 compliant mineral resources for the Don Gabriel and Papomono

deposits,

Develop an operational mine plan for the expansion of the Don Gabriel Manto open pit,

and

Estimate mineral reserves for the Don Gabriel Manto.

Propipe’s scope of work is summarized as follows:

Review existing copper leaching recovery data from commencement of operations

Review available leaching tests based on chloride (salt) leaching,

Estimate copper recoveries based on salt leaching,

Develop engineering plans to convert the existing acid leach plant to the salt leach

process, and

Estimate the capital cost for the plant conversion.

2.2 Sources of Information

The primary sources of information used for this study include:

The digital drillhole databases for Don Gabriel and Papomono. These were developed

during the Vale tenure and maintained by MTV,




March 29, 2018


Original assay certificates for a significant number of the holes,

Various geologic solids that were developed (interpreted) by MTV geologists,

An optimization study for the Don Gabriel pit conducted by Tetra Tech,

Various reports on sampling methodology, quality control and quality assurance

(QA/QC), geologic setting, exploration activities and results, resource modeling,

geotechnical and slope stability, mine planning, and economic evaluations were provided

for the study. They were developed by Vale, MTV, and other consultants.

Various reports on metallurgical testing, process recovery, and mineral processing that

were developed by Vale, MTV, and other consultants.

IMC and Propipe reviewed the data and only used data that was deemed reliable for this report.

The resources models were generated using the Leapfrog Implicit Modeling software,

MineSight®, and IMC proprietary software. Tetra Tech performed an optimization study using

Geovia Whittle® Strategic Planning software.

2.3 Qualified Persons and Site Visits

Michael G. Hester, Vice President and Principal Mining Engineer for IMC, is an independent

Qualified Person. Mr. Hester is responsible for the mineral resource estimates, the mineral

reserve estimate, the Don Gabriel mine plan, and the overall report. Mr. Hester visited the site in

May 17-18, 2017 and September 20-21, 2017 for about a day and a half for each visit.

Gabriel Vera of GV Metallurgy (“GV”), Chile, is an independent Qualified Person. Mr. Vera is

responsible for the certification of historic recoveries, as well as the estimation of metallurgical

recoveries for the chloride leach process, Section 13 of the report. Mr. Vera visited the site on

March 23, 2018.

Enrique Quiroga of Q & Q Ltda. (“Q&Q”), Chile, is an independent Qualified Person. Mr.

Quiroga is responsible for the engineering plans and cost estimate for the conversion of the plant

to the chloride leach process, Section 17 of the report. Mr. Quiroga has visited the site many

times, the most recent on June 27, 2017.

This report is in metric units of measure. However quantities of copper metal are often

expressed in Imperial (or US) pounds since prices are typically quoted in those units on

international markets. Currency is expressed in US dollars as of the 1st quarter of 2018.

3.0 Reliance on Other Experts

IMC is not qualified to audit property rights in Chile and is relying on the report “Resguardo

Mensual Concesiones Mineras Proyecto Sociedad Contractual Minera Tres Valles” by Terradap

Chile and dated March 3, 2018.

IMC also did not conduct an independent environmental audit for this project. Section 20 was

prepared by MTV under the supervision of Sebastian Cortes, a forest engineer with 10 years of




March 29, 2018


experience in environmental control and management in public and private sectors. This

responsibility includes health & safety, environmental studies, permits and community relations

aspects of the report. The MTV project is operating and it is reported to IMC that all the

required permits are in place.

4.0 Property Description and Location

4.1 Property Location

MTV is located in the southern part of the Coquimbo Region, in the central portion of Chile.

Figure 4-1 shows the locations. It corresponds to the narrowest part of the country, with only

90km from the coast to the Argentine border. The mine-plant complex is located around the

borderline between the counties of Salamanca and Illapel, both of which are part of the Choapa

Province.

The mines are located between latitude 31o39′50″ S and 31

o42′20″ S and longitude 70

o55′00″ W

and 70o57′35″ W, while the plant is around the coordinates 31

o43′43″ S and 71

o00′45″ W.

Figure 4-1. Project Location, MTV 2018

4.2 Land Area and Mining Claim Description

There are two types of mining concessions in Chile, exploration concessions and exploitation

concessions. With exploration concessions, the titleholder has the right to carry out all types of

exploration activities within the area of the concession. Exploration concessions can overlap, but

only the titleholder with the earliest dated exploration concession over the area as indicated by

their identification (ROL) number, can exercise these rights. For each exploration concession,

the titleholder must pay an annual fee of 1/50 of the Unidad Tributaria Mensual (“UTM”) per

hectare to the Chilean Treasury, today about US$ 1.58 per hectare. Exploration concessions

have duration of two years. At the end of this period, the concession may be renewed for 2 more

years, in which case at least 50 % of the surface area must be renounced; or converted, in total or

in part, into exploitation concessions. With exploitation concessions, the titleholder has the right




March 29, 2018


to explore and exploit the minerals located within the concession area and to take ownership of

the extracted minerals. Exploitation concessions can overlap, but only the titleholder with the

earliest dated exploitation concession over the area can exercise these rights. The titleholder

must pay an annual fee to the Chilean Treasury of 1/10 of the UTM, at this time approximately

US$ 7.88 per hectare. Exploitation concessions are of indefinite duration, and therefore do not

expire. Concession owners do not necessarily have surface rights to the underlying land;

however, they do have the right to explore or exploit the concession.

Figure 4-2 shows the current status of the mining claims. A list of the claims is included in the

appendix. MTV has the mining rights to 229 exploitation concessions (46,378 ha), 215 of which

are fully constituted and registered (44,185 ha) and 14 (2,193 ha) that are under administrative

process, waiting sentence, performing topographic resurvey, or are “second floor” being adapted

over previous MTV concessions in order to close old, small gaps (“demasías”). All relevant

areas in the mine and the plant are fully covered and rights-assured by exploitation definitive

concession (in Chile the exploitation concessions have no term). There are three concessions

with partial superposition with third-party, none of them relevant for the project.

4.3 Agreements and Encumbrances

Sprott Resource Holdings Inc. (“SRHI”) purchased of 70% of the equity of S.C. Minera Tres

Valles (“MTV”) from the Vecchiola Group for a purchase price of US$ 39.9 million during

October 2017. The transaction included US$ 33.5 million in cash and US$ 6.4 million in SRHI

common shares. A total of 51,191,847 SRHI common shares were issued to the Vecchiola

Group. The Vecchiola Group retains a 30% interest in the project. There are no additional

payments pending for this transaction, and there are also no back-in rights or clawback

agreements whereby the property could revert to former owners.

There is a royalty payable to the Chilean government depending on production. Currently

production is below the minimum of 12,000 mtpy copper so there are no payments. From 12 to

15 ktonnes of copper production the marginal rate is 0.5% and between 15 and 20 ktonnes of

copper production the marginal rate is 1.0%. At full production the effective royalty rate for

total MTV production will be about 0.3%.

MTV purchased 19 concessions (2,574 hectares) in the extreme northwest property block from

Mineria Activa during 2015 which are subject to a 2% NSR royalty. These are the Salamanca,

Herminia and La Por Llegar concessions. Currently there are no known mineral deposits on

these claims.

There are no environmental liabilities on the property other than the formal commitments

detailed in the original mining license.

The law number 20.551 of October 28th

of 2011, established the obligation of all mining

facilities of more than 10 ktonnes/month processing in Chile to develop a closure plan. This plan

was prepared by Arcadis, which calculated the total cost of MTV closure to be of US$ 6.73M

(VAT included). This was submitted to Sernageomin and approved in November 30th

of 2016.




March 29, 2018


The schedule for presentation of incremental Bank Guarantee Bonds was established in January

6th

of 2017, ending in 2026, and is up to date.

4.4 Permit Status

The property is operating at a low level of production, and MTV has all the permits required to

operate. More details on the permits are discussed in Section 20 of this report.

IMC does not know of any other significant factors or risks that may affect access, title, or the

right or ability to perform work on the property.



March 29, 2018


Figure 4-2. Property Map – Terradap Chile, March 2018




March 29, 2018


5.0 Accessibility, Climate, Local Resources, Infrastructure and Physiography

5.1 Access

The main access to MTV is the D-81 road, which connects Illapel with Salamanca. From

Santiago, it is 222 km north by route 5-N until Los Vilos. Then, 93 km east, following the

Pupios Valley, crossing the Cavilolen Range and finally into the Choapa Valley. The main

entrance is located 9 km before arriving in Salamanca in the Chuchiñí community. At this point a

5km private road connects with the MTV plant.

5.2 Climate

The climate in this region is inner steppe, with dry summers and most of the total rainfall

(average of 200mm/a) in the winter. Average annual temperature is 19°C, oscillating from 30°C

in summer to 9°C in winter. Daily thermal amplitude is around 19°C. Vegetation is mostly

shrub, with local areas of small trees, thin grass and cactuses. In the main valleys, agriculture is

developed through irrigation channels, highlighting the crops of grapes, avocados, berries,

peppers, walnuts and apricots.

5.3 Local Resources and Infrastructure

The Choapa province is the southernmost part of the Coquimbo Region. It is formed by four

counties (Comunas), spreading from the coast to the Argentinean border. MTV has the

Papomono mine located in the Illapel county while all other infrastructure in Salamanca County.

Illapel, the capital of the Choapa Province, is a city with 31,500 inhabitants, 19 km NW of MTV.

Salamanca is only 8km south of MTV and has a population of 25,600. The city is located in the

north Choapa river bank, close to the confluence with the Chalinga River. The town has several

hotels, restaurants, supermarkets and drugstores, two bank/ATM agencies, two gas stations and a

police station. It also includes a local VHF TV station and several radio stations. Due to the

proximity to Antofagasta Minerals Ltd. Los Pelambres mine, Salamanca has a large amount of

skilled mining labor and contractors.

The Choapa province is an old artisanal mining district with hundreds of small points of copper

and gold manual extraction, which coexists with low scale agricultural activities in the valleys.

MTV is operating, and there is sufficient power and water to sustain the operation. The project

also has sufficient surface rights for the leach pad, processing facilities, and the required waste

storage areas.

5.4 Physiography

The altitude of the plant is around 600 m.a.s.l. (meters above sea level), while the mines are

between 1,400 m and 1,600 m.a.s.l., allowing year-round work on there (snowfall is minimal and

very uncommon). The project is located around the La Horqueta Hill (1,965 m.a.s.l) which acts

as a watershed for three valleys: Manquehua to south, Quilmenco to SW and Cárcamo to north

(giving the name to the project).




March 29, 2018


6.0 History

MTV is a grassroots discovery made by Vale in 2005. After assessing some opportunities, a 3.5-

year term purchase option contract was signed in March 2005 with Minera Werenfried for a

block of 25,000 ha of mining properties in the Choapa Province. Field reconnaissance identified

several albite-rich rocks with chalcocite and copper oxide mineralization that was being

exploited by artisanal miners. The high concentration of copper occurrences aligned through a 6

km structure in the Manquehua Valley led to the interpretation of potential significant mineral

deposits lying underneath.

With the original name of Project Papomono, work began with an IP geophysical survey, and

drilling started in April 2005. In June, drillhole DDH-009 intercepted three high-grade copper

intervals (best interval of 35m @ 2.7%Cu), leading to the discovery of the Papomono main

deposit. In April 2006, the following year, Don Gabriel “Mantos” was discovered through

DDH-036 (best result was 40 m @ 1.01%Cu). In the following months, Vale staked new mining

properties around the original block, doubling the total tenements surface. At the same time, 10

IP-survey grids were performed in different parts of the block and some higher chargeability

anomalies were drill-tested, with low degree of success.

A preliminary economic assessment for combined underground-open pit exploitation of

Papomono and Don Gabriel, a 3,000 tpd SX-EW plant and 18,500 tonnes of copper cathode per

year was done by NCL in August 2006, based on a preliminary resource estimate. Based on

NCL recommendations the Post-Pillar underground method was selected for Papomono Phase 1,

the North Manto deposit. Metallurgical studies made by Domic S.A. proposed a two-stage

leaching process, chemical and bacteriological, for mixed oxide-chalcocite treatment.

In March 2007 the excavation of a tunnel for bulk metallurgical sampling and underground

drilling in Papomono began. This tunnel was further expanded for production purpose, and

eventually finished two years later, at a total length of 1,870 m. In August 2009 AMEC was

hired to carry out the engineering of the project, and Arboleda Grande, 5km southwest of Don

Gabriel, was proposed as the location for the plant. In December 2007 a land-easement contract

was signed with Comunidad Agricola Chalinga and in January 2008 an Environmental Impact

Study (EIS) for Project Papomono was submitted to the environmental authority. This was

withdrawn and in October Vale resubmitted the project under the new name, Project MTV, with

the plant located in Quilmenco Valley. The final environmental license (RCA) was granted in

October 2009.

In 2008 the project was approved by Vale’s board for construction, triggering the purchase of

90% of the asset from Minera Werenfried. Total investment on the project during project and

operation stages was US$ 241 million. The designed crushing and SX-EW plants have

maximum capacities of 5,400 tpd ore and 50.7 tpd copper cathodes, respectively. Based on total

resources a preliminary mineral reserve was estimated, while drilling campaigns were continued

into the following years.




March 29, 2018


In December 2010 the plant was inaugurated and in February 2011 the first cathodes were

produced. The plant feed was from Papomono underground, the Cumbre open pit and Enami-

purchased feed. In 2012 a third-party ore purchase system was implemented, sourcing feed from

local miners.

The road to Don Gabriel was finished in June 2012, allowing the open pit to start production.

After several adjustments and improvements in the crushing plant, maximum capacity was

reached during the second half of 2012, and eventually surpassed 5,600 tpd during 10 months. A

monthly production of 1,330 tonnes of cathodes was reached in November 2012.

An audited mineral resource and mineral reserve statement was released in May 2013. The

mineral resource and mineral reserve statement was audited by Snowden Mining Industry

Consultants (“Snowden”) in the report titled “Cia. Contratual Tres Valles: Resource and Reserve

Statement”. The mineral resource and mineral reserve estimates contained therein were certified

as JORC-compliant (Joint Ore Reserves Committee of The Australasian Institute of Mining and

Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia) by

Snowden.

The measured and indicated mineral resource was 40.74 million tonnes at 0.81% copper.

Inferred mineral resource was an additional 4.10 million tonnes at 0.79% copper. The mineral

resource was stated at a cutoff grade of 0.2% total copper. The Snowden work was a review of

mineral resource models and mineral resource estimates prepared by MTV. The mineral

resource estimate appears to have been reliable at the time. However, there has been mining

activity since the estimate, so the mineral resource estimate cannot be considered as a current

mineral resource estimate.

The proven and probable mineral reserve was 17.73 million tonnes at 0.91% copper. The

mineral reserve was defined with a life of mine plan. The mineral reserve estimate might have

been considered reliable at the time, but it was based on a copper price of $3.40 per pound,

significantly higher than the price used for this current study, so the mineral reserve estimate

cannot be considered as a current mineral reserve estimate. Also, there has been mining activity

since the estimate, so some of the historic mineral reserve has been depleted.

There are numerous uncertainties inherent in the foregoing historical estimates, which are subject

to all of the assumptions, parameters and methods used to prepare such historical estimates. The

historical estimates have been prepared in accordance with the requirements of JORC and may

not comply with or fulfill the CIM Definition Standards, and may vary significantly from actual

amounts, grade and quality of minerals recovered from the MTV property. A qualified person

has not done sufficient work to classify the historical estimates as current mineral resources or

current mineral reserves and SRHI is not treating the historical estimates as current mineral

resources or current mineral reserves.

The proven and probable mineral reserve was 17.73 million tonnes at 0.91% copper. The

mineral reserve used only the proven and probable reserve categories defined by NI 43-101 and

was defined with a life of mine plan. The mineral reserve estimate might have been considered

reliable at the time, but it was based on a copper price of $3.40 per pound, significantly higher

than the price used for this current study, so the mineral reserve estimate cannot be considered as




March 29, 2018


a current mineral reserve estimate and the issuer is not treating this estimate as a current

estimate. Also, there has been mining activity since the estimate, so some of the historic mineral

reserve has been depleted.

At the end of 2012 Vale decided to sell MTV, among other international assets. New projects

were frozen from this moment on, except for the quaternary crusher, which was already being

built and was designed to reduce the size of crushed material to ¼”, mainly targeting future Don

Gabriel chalcocite mineral. The new crusher was commissioned in August 2013.

The selling process was completed in December 2013, when the Vecchiola Group acquired

100% of the asset. Soon after, Vecchiola decided to shut down the mines, downsize its

workforce and focus initially on the tolling process in order to make the turnaround while re-

evaluating the whole operation. In 2015 a reassessment of the reserve base, mining methods and

cost effectiveness was performed, and in October small-scale production resumed at on-site

deposits in a trial stage and a new long-term mine plan was established. During 2016 a set of

metallurgical tests were performed in order to test the potential increase in recovery using

oxidant agents. Presently, only one daily shift is operating, occupying around 30% of the plant

capacity. In September 2017 Vecchiola sold 70% of the asset to SRH Chile SpA, a subsidiary of

Sprott Resource Holdings Inc., a Canadian natural resources company listed on the Toronto

Stock Exchange.

Between December 2010 and October 31, 2017 MTV has mined and processed 4.22 million

tonnes of ore at an average grade of 0.90% Cu. Considering the external purchases and tolling, a

total of 6.14 million tonnes averaging 1.22% Cu was processed in its plant, resulting in 59,991

tonnes of copper cathodes. In addition to the finished cathodes, copper in process solutions,

cathodes still in EW cells, and recoverable copper on the leach pad was estimated at 1,416 tonnes

as of October 31, 2017.




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7.0 Geological Setting and Mineralization

7.1 Regional Geology

MTV is located in the prolific Cretaceous belt of Chile, which hosts a vast amount of copper

deposits, ranging from small to world-class size. This belt presents a variety of deposit types, the

most common being the IOCG (Iron Oxide Copper Gold) and the Cu-Ag stratabound, also called

“mantos” (see Figure 7-1). The first type of mineralization, IOCG, is more common in the

Atacama Region and throughout the north of Chile. These deposits can reach gigantic sizes,

such as Candelaria, which in 21 years has produced 3.6Mt of payable copper. On the other hand,

the stratabound, “manto-type” deposits are more common from Atacama Region to the south.

The largest examples are El Soldado and Michilla. There are also some Cu-Au porphyries in the

Cretaceous belt, which the largest is Andacollo. Finally, minor skarn and Cu-Au veins are found

all over the belt.

7.2 District Geology

MTV is located in a regional horst-graben system, formed by a 10 km wide corridor of volcanic

rocks, and bordered by km-scale N-S faults. To the west and east intrusive granodioritic to

dioritic rocks prevail, which are from the Early Cretaceous age Illapel Super-Group. The

volcanic rock forms a thick package of flat layering or gently dipping beds of lava, pyroclastic

and epiclastic rocks from middle to upper Cretaceous.

Lithostratigraphically, the volcanic rocks belong to two main units. The slopes of the valleys

form pediments of the Quebrada Marquesa Formation, from the Barremian-Albian age. In the

Salamanca-Illapel region the predominance is the Quellen Member, which is characterized by an

intercalation of andesitic lava, volcanic breccias and agglomerates, with subordinate sandstones.

Overlying it, in unconformity relation, is the Viñita Formation, of Upper Creataceous age. It is

generally horizontal bedding and this attitude is demonstrated by characteristics plateaus

(tableland) geomorphologies like Llanos de Talhuen, between Choapa and Chalinga Rivers and

Cerro Carrizo-Los Linderos, north of Chalinga Valley. The limits of the Viñita Formation also

form cliffs and escarpments. The basal zone is predominately oxidized levels of sandstones and

conglomerates (Sta. Virginia Mb) while near the top lava and volcanoclastics dominates (Rio

Manque Mb). Besides the obvious geomorphologic distinction, the Viñita Fm. stands out by its

reddish colors, contrasting with dominant gray tones from Quebrada Marquesa.

Remnants of Tertiary tuffs can be seen forming isolated outcrops in the upper parts of the plateau

while quaternary coverage fills the E-W main valleys.

At MTV, Quebrada Marquesa Fm is the main host rock for stratabound copper mineralization. In

terms of Viñita Fm, only some skarns, minor veins or manganese beds are found.



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Figure 7-1. Left: the Cretaceous belt in Chile with main deposits (MTV in cap letters). Right: Types of deposits found in Cretaceous belt of Chile,

(Maksaev V. et al. 2007).




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The concession block is outlined by two main regional faults: Manquehua and Llimpo. These

faults can be easily identified when producing the sharp contact between intrusive and volcanic

rocks but can also be clearly seen in aeromagnetic surveys (see Figure 7-2). The magnetometry

also shows ENE-WSW trans-andean structures coincident with some valleys (e.g. Chalinga

Valley). The relation between these trans-Andean faults and important porphyries is notorious in

Chile. In the Salamanca region it can be seen as controlling the gigantic Los Pelambres Cu-Mo

porphyry, close to Argentinean border (see Figure 7-2, right).

In district scale most of the known Manto-type deposits are close to the west regional fault,

called the Manquehua Fault (see Figures 7-3). The Llimpo Fault, to the east, is less evident and

only skarn or vein copper deposits have been found to date. Zooming in on the Manquehua

Valley, which names the regional structure, a set of veins, dikes and lineaments can be observed

aligned in a 6 km-long NW-SE corridor, grossly sigmoidal-pattern Figure 7-3 right). At both

sides of this sigmoid, the main Papomono and Don Gabriel deposits are found. In the middle

part of the structure, several smaller deposits are outlined. Less important mineral zones can be

related to N-S, WNW-ESE or E-W structures.



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Figure 7-2. Left: horst-graben structure, producing the long regional belt of volcanic rocks bounded by batolite intrusives. (Sernageomin, 1991), Right:

Aeromagnetometry (RTP) showing the regional NNW-SSE faults cut by trans-Andean ENE-WSW regional structure



March 29, 2018


Figure 7-3. Left: Regional map of MTV project, showing the Manquehua and Llimpo regional faults, as well as the relation between batolitic intrusives

(pink color) and volcanics (green to gray). Right: Zoom to the Manquehua Valley and it´s structural corridor (MTV, 2006)




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7.3 Deposit Geology

7.3.1 Papomono

7.3.1.1 Stratigraphy

The stratigraphy observed in the Papomono deposit is mainly composed of a sequence of

andesite interbedded with pyroclastic rocks of the Quebrada Marquesa Formation, N40 W strike,

dipping 15° to SW. The lithostratigraphy used for deposit modeling purposes is formed by three

main levels, from top to base:

Unit C: Volcanic breccias and Lapillis intercalated with andesitic lava and commonly epidotized.

This unit presents a small amount of mineralization and is the most common outcropping unit.

Unit B: Porphyritic and compact andesite, which is considered as a physical barrier for the

ascendant fluids.

Unit A: Ash and lapilli tuffs with some andesites, typically flow-structure bearing. This unit is

the main host rock in Papomono and its beds are commonly subject to intense albitization. Table

7-4 summarizes these units, their thicknesses and textures.

Figure 7-4. Papomono Stratigraphic Units

A small intrusive plug with fine equigranular texture cuts all andesitic volcanic sequences. It is

located in the intermediate zone between the Manquehua and Papomono faults. It is cylindrical

in shape and its composition is dioritic-gabroic. This plug is a host for the Cumbre mineral

deposit.




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Dikes of intermediate composition (andesitic-microdioritic), mineralized or not, intrude the

volcanic sequence following structural discontinuities in the EW to NE directions. They are

reduced in size, from 0.5 to 5 m thickness, with dominant chloritic alteration.

To the west, granodiorites from the Illapel Super Group (granodiorites with some granitic zones)

are in sharp contact with the volcanic sequence. Locally, some aplitic apophysis are found. To

the west, some reddish volcanoclastics of the Viñita Formation are preserved unconformably in

the upper part of the hills.

7.3.1.2 Structure

In Papomono, four structural systems are mapped. They are shown on Figure 7-5. The most

obvious at the surface is the regional N15°W striking, 85°NE dipping Manquehua fault which

produces the sharp contact between the granodioritic batholith to the west and andesitic sequence

to the east. This fault is believed to have been reactivated after the emplacement of the Illapel

batholite as the andesites around its contact are slightly metamorphosed to hornfels.

The most important structure in terms of mineralization control is the Papomono Fault system.

This system is oriented N35°W to N40°W, dipping 80°- 85° to the southwest and includes the

Papomono Fault and the Epithermal Vein controlling fault. In the Cumbre open pit, a fault with

this direction was also mapped. The Papomono Fault is an intensely fractured and brecciated

zone, mapped in a 950m-long extent. In the central zone it assumes a wider width, from 10 to 50

m of intense fracturing, with some gouge bands that are chalcocite-bearing. This fault system is

considered to be the main hydrothermal fluids conduit in Papomono.

The third system is related to groups of N-S striking, 55°E dipping, short and narrow trans-

tensional faults, generally filled by chalcocite. These sets of structures repeat each 550m along

the Papomono Fault zone, suggesting they correspond to a Riedel-type structure. They are in

blue on Figure 7-5. A more extensive, N8°E striking fault (blue dots on Figure 7-5) coincides

with the central set of N-S veins and is clearly seen in the magnetometry AS survey on the right

side of the figure.

Finally, there is a set of late N70°E to N80°E striking vertical structures that displace all other

previous structures, generally in a transcurrent dextral movement. At one point a horizontal

throw of up to 140 m can be observed in the Manquehua fault, while a 25m horizontal

component was measured in the Papomono Fault.

It is important to mention that the Papomono fault was also submitted to a transpressive effort

towards the east, which is expressed by a low angle fault, concordant with bedding, and observed

only in the PPM Massive zone. The hanging wall seems to be thrusted some 25m over the

footwall.



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Figure 7-5. Left: Papomono Structures (Red: Papomono Fault system; Blue: N-S Veins; Green: N70

oE Faults). Right: Magnetometry (AS) with 3D-

modelled structures showing the coincidence between its response and mapped structures (MTV, 2006)




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7.3.2 Don Gabriel

7.3.2.1 Stratigraphy

Lithostratigraphically, the Don Gabriel deposit consists of five units, all N60°W striking, dipping

25° SW (Figure 7-6). The upper level is formed by porphyritic, fine to medium texture andesite

and breccia intercalations, generally red to grey colored. In the middle of this unit there is a 10

m-thick dioritic sill with fine equigranular or aphanitic texture, pale-gray to green colors.

Underlying this unit there is a 100m-thick set of red to gray andesites, porphyritic to medium-

coarse texture, with several amygdaloidal levels. The amygdules are generally filled by

chalcocite-bearing albite. When oxidized, green oxides are typically the filling material. The

vesicles and amygdules are normally oriented, attesting flow texture. This unit is the host-rock

of the manto-type mineralization in Don Gabriel.

Under this unit occurs a 50m-thick unit composed of two levels of coarse reddish-brown

sandstones (volcanoclastic sand) to microconglomerate, 0.6 to 10m thick, showing cross-

stratification, with red andesites and breccias, hematite-rich, intercalated between them.

The lower level is composed of coarse-medium porphyritic andesites and breccias that are red-

color and sometimes have a trachytic texture. This unit outcrops in the nearby valley where a

swarm of vertical microdioritic dikes cut the gently dipping beds. All these units are considered

as upper members of the Quebrada Marquesa Formation.

The whole set of volcanic-volcanoclastic rocks is cut by several microdioritic dikes striking in

the NW direction. A stock of 350 x 130m, elongated through a NW-SE direction, is believed to

be the intrusion center from which the dikes formed.

Figure 7-6. Don Gabriel Stratigraphy, MTV 2007




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7.3.2.2 Structure

In Don Gabriel, four directions of sub-vertical structures can be observed. These are shown on

Figure 7-7. The most common are the N45°W to N35°W striking set of faults that can be seen in

the existing pit walls. The faults are composed of zones of 1 to 2m-thick intense fracturing. At

least six faults with this attitude were identified. The main fault was named the Nuñez Fault and

is believed to be part of the structures that control the high-grade veins underneath the Don

Gabriel Mantos. Even inside the mantos, higher copper grades are observed around this fault

and others parallel to it. Towards NW, several microdioritic dikes outcrop with the same

direction, suggesting the emplacement of magma took place when the structural discontinuities

were formed. Field relations suggest these structures cut and displace an E-W fault zone, also

visible at the open pit.

The third set of structures is N-S, which can be related to some dikes, and are not very significant

in length. In the open pit the main N-S fault is called the Gaby Fault and is a set of 2 to 3

parallel nearby faults.

Finally, there are N60°E striking structures that are interpreted to be the last structures, as they

produce displacements in several other faults. The main member of these faults seems to have

produced a sinistral displacement in the Don Gabriel Veins deposit, with 60 m of horizontal

throw in the SE block.

Figure 7-7. Don Gabriel Litho-Structural Map, MTV 2012




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7.4 Mineralization

7.4.1 Papomono

The dominant sulphides in the deposit are in decreasing order: chalcocite-covelite (~85%),

bornite (~6%), enargite (~5%) and chalcopyrite (~4%). It is important to mention that the bulk

of the chalcocite at MTV is hypogene. Very few parts were observed with supergene chalcocite.

In places where intense fracturing and faulting occurs, the action of oxidizing agents generates

oxide copper minerals: chrysocolla, malachite, brochantite and atacamite. For this reason, the

traditional vertical zonation of oxides on top and sulphides in deeper parts are not identified in

Papomono and the main oxide zones are related to more fractured zones, sometimes deeper than

preserved sulphides.

The most common hydrothermal alteration, directly related to mineralization, is albitization,

which can occur pervasively, forming homogeneous light-pink or light-gray beds, or as halos

around structures, spotty or filling amigdules. Around the mineralized bodies, it is common to

find fine disseminated hematite, occasionally with chlorite. In sectors where volcanic breccias

dominate, intense epidotization is the most common alteration halo.

A conspicuous level of intense quartz-sericite-pyrite alteration characterizes the deeper parts of

the deposit. This is not concordant with the stratigraphy, but seems to superimpose it, forming a

grossly horizontal level, with stair treads-like contact. The project geologist called this level the

“Quartz-Sericite floor”, because significant chalcocite mineralization was not found under this

contact, only minor Cpy-Py. Despite limited information on this contact, since the drill holes

generally stopped before or immediately at this level, it is considered a different event, not

related to the stratabound mineralization, generated by upward-driven fluids.

The origin of the hypogene mineralization has two hypotheses. Sillitoe (2005) proposed the

mineralizing fluids in Papomono were basinal-diagenetic, leached from the upper Viñita Fm.

oxidized beds. These fluids would flow down through permeable beds and, when reaching

reducing horizons (chemical traps), precipitate, with a lateral sulphide zonation (cc, cc-bo, cc-

cpy, py from close-to-distal redox contact). This author considered the qz-ser-py zone as the

most distal fronts of the same stratabound-related dip-downward fluids. The team of geologists

at MTV believes that the fluid is hydrothermal in origin and the solutions rose through structural

discontinuities from deeper parts to areas with less lithostatic pressure, precipitating in receptive

stratigraphic levels, which were physically and chemically favorable. The favorable lithologic

horizons that served as fluid conduits are strongly affected by a pervasive to sparse albitic

alteration. The chemical trap for precipitation is a fact in Papomono, as pyro-bitumen was found

in some thin sections, closely associated with chalcocite. Pyro-bitumen is described in other

stratabound deposits in Chile, like El Soldado.

It was observed the precipitation of copper minerals generally occurs mainly between 1,350 and

1,450 m a.s.l. This can be related to a combination of favorable pressure and rock characteristics.

The most common deposit geometry is the manto-type (stratiform). The individual “mantos”

have a thickness that ranges from 2 to 50m, up to 500m strike extension and length along dip




March 29, 2018


reaching 600m. Examples of this type of deposit geometry are the PPM South, Mantos

Connection, and the Mantos North deposit. The other common geometry is vein-type, with a

thickness between 2 and 15m, strike length from 100 to 420m and 100 to 250m deep. Dip angle

is generally steep, between 80° and 90° to the west. There are also sets of tens of cm-thick N-S

veins dipping 55° to the east. These sets of veins occur in clusters of 10 to 30 narrow, around

50m long, massive chalcocite veins.

One specific and important geometry is observed in only one deposit, PPM Massivo. It is a

complex geometry which resulted from the intersection of at least three different mineralization

controls in the same area: the Papomono Fault system, the favorable strata (mantos) and the N-S

set of small veins dipping east. The resulting geometry is roughly an inverse triangle or a

truncated rhomb shape, which has 440m strike, up to 190m wide and 190m high.

Finally, there is a cylinder-shape geometry related to the intrusive plug of Cumbre. This deposit

is vertical, with at least 400m deep (310m from the bottom of exploited Cumbre pit) and an

average diameter of 180m. A near surface oxide mineralized zone was hosted in the upper part

of intrusive as well in the contact zones with volcanic to volcanoclastic rocks of the Quebrada

Marquesa Formation and was already exploited by open pit. Deeper zones in Cumbre present

disseminated chalcocite and bornite mineralization.

7.4.2 Don Gabriel

The mineral deposit of Don Gabriel is formed of two main zones:

An upper deposit of “manto” type, medium copper grade, with a set of stratabound

disseminated, fine chalcocite, mineralization approximately 100m thick, dipping 30°

SSW. This is shown in Figure 14-4.

A lower deposit, vein-shaped (straight-tabular), sub-vertically oriented N45°W, with

intense strong to spotty mineralization or veinlets type (stockwork or sheeted veinlets),

high copper grade, with chalcocite, digenite and some bornite. These are shown in

Figure 14-5.

Whereas the first type is hosted mainly in andesite amygdaloidal levels, the second type has

medium to coarse porphyritic andesite and/or dioritic to microdioritic dikes as host rock, which

underlies the level of coarse sandstone. The layers of sandstone serve as a guide-level separating

the two main units. It is used as a sharp limit between the two geological models, Don Gabriel

Mantos and Don Gabriel Veins.

The vertical-tabular mineralization seems to be intimately linked to the presence of dioritic dikes,

which, in turn, are related to an intrusive stock to the W and SW, and outcrops at the bottom of

the ravine near the mineral deposit. Such stock was also intercepted by several drill holes a little

further to the east. Those dikes found in such drill holes may also be observed in the mine’s

roads cut, as a 2 to 10m-thick dike swarm, which follows the same N45-50°W direction of the

mineralization.




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Considering the clear relationship between the vein shape mineralization and such dikes, it is

possible to speculate the presence of a metasomatic component in its genesis, despite no

distinctive skarn mineral being observed, only epidote and chlorite. Another possibility is that

the dioritic magma emplaced areas of structural weakness, also employed by the mineralizing

fluids immediately after the igneous siting (tardi-magmatic event). In some areas, mineralization

zones are also observed, with similar characteristics to the “mantos”, chalcocite disseminated

mineralization with pervasive albite, which makes it possible to glimpse the potential presence of

stratabound deposits, but not stratiforms, as a set of parallel veins restricted to favorable

stratigraphic levels (e.g. mineral deposits El Soldado or El Espino). Another aspect worth

mentioning is the common presence of veins or disseminated hematite surrounding the best

mineral grade sectors.




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8.0 Deposit Types

MTV is a Cu-Ag stratabound, manto-type deposit. The stratabound deposits in Chile can be

Jurassic (e.g Michilla) or Lower Cretaceous age (El Soldado), but regardless of the age, these

deposits present very similar characteristics, with comparable geometries, mineralization

controls and mineral paragenesis (see Figure 8-1). They are generally in volcanic/volcanoclastic,

subvolcanic or sedimentary rocks. The “manto” deposits can present, in addition to the most

common stratiform geometry, lenses, breccia pipes, veins or irregular shapes, sometimes all

together in the same deposit. They are considered epigenetic, hydrothermal or metamorphic

fluid origins are suggested, and albite is the most common alteration. Main controls are

lithologic (permeable strata), structural (extensional faults) or intrusion-related. Main economic

minerals are chalcocite, bornite, chalcopyrite and associated oxides. Supergene enrichment is

not common as they are generally pyrite-poor.

Figure 8-1. Left: Location of stratabound Cu-Ag deposits in Chile, (Maksaev, V. et al. 2007), Right: type-

section of two main stratabound deposits in Chile: Michila and El Soldado (Boric et al. 2002).




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9.0 Exploration

9.1 Initial Exploration

There has been no exploration conducted by, or on behalf, of MTV. This section is a brief

summary of the Vale exploration that led to the discovery of the Papomono and Don Gabriel

deposits.

The exploration that led to the discovery of MTV was started by Vale in 2005, searching for

large-scale deposits. As part of Cretaceous belt, the expectations for this grassroots project were

for an IOCG (Iron Oxide Copper Gold) deposit with more than 100Mt resource, which was

expected to be possibly blind. Thus, the initial exploratory strategy was strongly based on

geophysics. The initial works were an IP dipole-dipole and magnetometry surveys in the

Manquehua valley, where a 6km-trend was initially mapped with tens of copper occurrences.

The surveys were developed by Zonge Ingenieria y Geofisica (at this time Zonge International´s

branch), headed by Sr. Geophysics Jim Scarbrough.

The magnetometric survey totaled 91 linear km and its result was not very effective for target

selection due to a background noise, mainly in the norther part of the grid. However, the

magnetometric maps proved very useful on defining the main structures and trends in the area.

During the IP survey a strong IP-Phase anomaly showed up in northern part of the Manquehua

grid (Papomono area) and the strong chargeable zone was drill-tested, resulting in abundant

pyrite-sericite alteration. Other exploratory criteria were tested and finally a medium

chargeability-medium resistivity anomaly was checked by the 9th

drill hole, resulting in an

interval of 91m @ 1.7%Cu, from 212m depth. This is considered the discovery hole of

Papomono deposit. The experience during the next months of exploration showed that the

chalcocite mineralization was generally related to low to medium chargeability anomalies (10 to

20 mRad). In the Papomono target it was usually located laterally and over the higher phase

values, while in Don Gabriel strong chargeable anomalies were lacking. The use of the empiric

knowledge of this stage as exploratory guide, together with the better understanding of the geo-

structural framework of the targets, led to a series of positive results, which eventually resulted

in the delimitation of Papomono and Don Gabriel deposits.

From 2008 on, all the efforts were concentrated in Papomono and Don Gabriel resource drilling

campaigns, with little additional exploration.

9.2 Mine-site Exploration

There has been no significant exploration since the Vale tenure. Currently, the main

development priorities are the expansion of production from the Don Gabriel Manto open pit,

and conducting a pre-feasibility study of the Papomono (“PPM”) Massivo to support a

development decision.




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Once these priorities are met, IMC anticipates additional exploration drilling in known deposits,

including the Don Gabriel Veins, the Epithermal Vein, Cumbre, and others to upgrade inferred

mineral resource to measured and indicated mineral resource.

9.3 District Targets

There are also additional known targets to examine in the MTV claim block. Most of these are

identified through geophysical signatures. It is reported that more than 100 copper occurrences

were mapped inside the claim blocks, and around 70 of them were related to artisanal

exploitation points. Most of them have geologic characteristics similar to Papomono and Don

Gabriel. These need to be reviewed and ranked for potential additional work.




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10.0 Drilling

Between 2005 and 2013 Vale executed more than 170,000 m of exploration and infill drill holes,

which is about 22,300 m/year on average. The maximum yearly drilling program was 40,767m,

in 2008. Figure 10-1 shows drilling by year.

Figure 10-1. MTV Drilling by Year

The companies Major Drilling, Terraservice and Geotec Boyles performed the drilling

campaigns. About 98.5% of drilling was diamond drill holes (DDH). In 2006, 2,694m of

reverse circulation (RC) drilling was executed, but after some twin-DDH studies, it was

concluded this type of drilling was not adequate to the mineralization type, with serious bias and

distortions on results. The probable cause was the low hardness of the chalcocite contrasting with

the hard albite-rich rock, producing fine pulverization of the chalcocite, loss of material and

differentiated recovery in samples. For this reason, no RC drilling results were used in geological

modeling or resource estimation. From 2007 to 2011, 18,000m of in-fill underground drill holes

were executed in Papomono, from the main tunnel and cross-stations. These campaigns were

performed in sections between the previous surface drilling sections, with drill holes crossing the

vertical structures orthogonally, while the surface drillings were mainly driven to crosscut the

mantos orthogonally. This pattern generates a complete coverage of the two main mineralization

directions in Papomono and avoided biased sampling.

Figure 10-2 shows the distribution of drilling by areas. The majority of the drilling (65%) was

executed in the Papomono area, as it was considered the more complex mineralization. About

23% of the drilling was in Don Gabriel. The rest was in Amarilla and Verde, two small deposits

between Don Gabriel and Papomono, and other regional exploration targets.

The grid spacing in Papomono was varied. The whole deposit was drilled in sections located

25m apart, and some with 12.5m spacing. In-fill drillings were performed in a fan-pattern, from

one single platform or station. For this reason, spacing between contiguous DDH varies along the

drill hole but it was planned to generate relevant information every 15m. In Don Gabriel the grid

spacing was also varied. The initial “manto” drilling campaigns were developed in N-S sections

each 50m. Some detailing at 25 or 35m was performed punctually. Over this grid a second grid,




March 29, 2018


with NE-SW direction, was executed, aimed at the high-grade vein systems, underneath the

“manto” deposit. The overlapping part of the grids generated more detailed information for this

part of the “manto” geological model.

Figure 10-2. Distribution of Drilling by Area

The drillhole databases provided to IMC for this project included 771 holes and 145,529 meters

of drilling. Table 10-1 summarizes this data by the Don Gabriel versus Papomono areas. This is

only the Don Gabriel and Papomono core holes; it does not include the RC data or any of the

Amarilla, Verde, or data for other targets.

Table 10-1. Summary of Drilling Data

Deposit Area No. of Holes Meters

Don Gabriel 189 37,860

Papomono 582 107,669

TOTAL 771 145,529

Figure 10-3 shows Don Gabriel drilling and Figure 10-4 shows Papomono drilling with respect

to the various Papomono deposit areas.

It is the opinion of IMC that the drilling methods are adequate for the style of the mineralization

at Don Gabriel and Papomono.



March 29, 2018


Figure 10-3. Don Gabriel Drilling, IMC 2017




March 29, 2018


Figure 10-4. Papomono Drilling and Deposit Areas, IMC 2018




March 29, 2018


11.0 Sample Preparation, Analyses and Security

11.1 Sample Preparation

The drill cores were delivered by the drilling contractors in wooden boxes of 1m long, identified

by project, hole ID, box number and box interval. Inside the boxes “blocking plugs” marked the

advances and the respective core recovery of the interval. This was then checked by MTV´s

geologic technicians, crossing the core information with the recovery sheet delivered by the

contractor. The same team proceeded to the “core regularization” process, marking equal length

core intervals. After that the core boxes were photographed under daylight conditions. The

cores were then sent to geological and geotechnical for logging at 1:100 scale, sample

delimitation and diamond-saw cutting. The samples were then bagged, labeled and packaged and

dispatched to the laboratory. The weight of sample sent to the laboratory was typically between

2 and 4 kg.

At ALS Chemex, the samples were crushed to 70% passing 2mm. A riffle splitter was then used

to split out about 250 gm of material that was then pulverized to 85% passing 75 microns.

11.2 Analysis

The analytical work for the exploration drilling was done at ALS Chemex in Santiago, Chile.

ALS Chemex is a well-known, and respected, commercial laboratory. First, each sample was

digested in aqua regia followed by ICP-AES analysis to obtain assays on 36 different elements.

For sample intervals where the copper ICP-AES determination exceeded 2000ppm, i.e. 0.2%

copper, two additional sets of determinations were done:

A total copper assay by four acid digestion and atomic absorption spectroscopy (AAS).

A three step sequential analysis to determine sulfuric acid soluble, cyanide soluble, and

residual copper.

For Don Gabriel, the number of copper assays in the database consisted of 37,147 by ICP

analysis, 10,902 total copper analyses, and 10,856 each acid soluble, cyanide soluble, and

residual sequential analyses. The final total copper assay in the database was based on the total

copper analysis when it was available, and the ICP-AES analysis for the low grade intervals.

For Papomono, the number of copper assays in the database consisted of 92,996 by ICP analysis,

21,847 total copper analyses, and 21,020 each acid soluble, cyanide soluble, and residual

sequential analyses. The final total copper assay in the database was based on the total copper

analysis when it was available, and the ICP-AES analysis for the low grade intervals.

It is the opinion of IMC that the sample preparation and analytical work is adequate for the MTV

project requirements.




March 29, 2018


11.3 QA/QC Programs

The exploration drilling was conducted under the tenure of Vale, and there were comprehensive

QA/QC programs in place for the entire exploration program. The QA/QC procedures were

initially established by Vale’s exploration department and were improved and complemented

following recommendations from Snowden audits. There are formal reports on QA/QC results

for each of the years 2008, 2009, 2010, 2011, and 2012 available.

IMC received the original QA/QC data, formatted it, and generated control charts for the blanks,

standards, and duplicates as a review of the original work.

IMC concludes that the QA/QC program in effect during the Vale exploration drilling met or

exceeded industry standards and was compliant with NI 43-101 requirements.

11.4 Sample Security

Since all the drilling was done during the Vale tenure, it is not possible for the Qualified Person’s

preparing this report to observe the chain of custody for samples. However, there was an audit

of the standard procedures conducted by Snowden and reported in “Soc. Contractual Minera Tres

Valles: Resource/Reserve Practices – Standard Procedures”, dated March 2013. Figure 11-1

describes the procedures for sample security. It is the opinion of IMC that these procedures meet

or exceed NI 43-101 requirements.

The core, coarse rejects, and sample pulps are in storage at the core logging area which is in a

secure area near the plant.




March 29, 2018


Figure 11-1. Procedures for Sample Security as Documented by Snowden, 2013.




March 29, 2018


12.0 Data Verification

12.1 Don Gabriel

For Don Gabriel, IMC selected nine drillholes to compare the assays in the database with

original assay certificates:

PPM-DGAB-DH0160 PPM-DGAB-DH0166 PPM-DGAB-DH0077

PPM-DGAB-MT0002 PPM-DGAB-DH0146 PPM-DGAB-DH0113

PPM-DGAB-DH0023 PPM-DGAB-DH0006 PPM-DGAB-DH0138

IMC checked the ICP total copper, the AAS total copper, and the soluble copper assays for each

sample interval. IMC also checked the downhole survey information for each hole against the

original measurements.

There were no significant discrepancies noted between the database and certificates. Based on

this review IMC concluded the Don Gabriel database is acceptable for resource modeling for

feasibility study level work.

12.2 Papomono

For Papomono, IMC selected 20 drillholes to compare the assays in the database with original

assay certificates:

PPM-PPMN-DH0046 PPM-PPMT-DH0079 PPM-PPMT-DH0106

PPM-PPMN-DH0090 PPM-PPMN-DH0120 PPM-PPMN-DH0152

PPM-PAPO-FD0021 PPM-PPMT-DH0067 PPM-PPMN-DH0030

PPM-PPMN-DH0182 PPM-PPMT-DH0035 PPM-PAPO-FD0009

PPM-PAPO-FD0013 PPM-PAPO-FD0016 PPM-PAPO-FD0018

PPM-PAPO-FD0022 PPM-PAPO-FD0051 PPM-PAPO-FD0012

PPM-PAPO-FD0017 PPM-PAPO-FD0027

IMC checked the ICP total copper, the AAS total copper, and the soluble copper assays for each

sample interval. IMC also checked the downhole survey information for each hole against the

original measurements.

The check against the assay certificates and also a logic check for acid soluble copper + cyanide

soluble copper greater than total copper identified errors in nine of the Papomono drillholes.

These were mostly FD series holes drilled during 2005, the first year of the exploration program.

The assay certificates from the laboratory were not consistent in the order the various total and

soluble copper assays were reported and this resulted in copper assays in the wrong database

columns for portions of several of the holes. IMC believes all the impacted holes have been

corrected and the Papomono database is acceptable for resource modeling for feasibility study

level work.




March 29, 2018


13.0 Mineral Processing and Metallurgical Testing

13.1 Acid Heap Leach Process

The objective of this report section is to provide an estimate of the achieved copper recovery for

Papomono and Don Gabriel for the current acid heap leach process, based on the report

ORYXEIO-MTV-2018-R01-0 from January 2018 (Certificate of Qualified Competency CM-

674-022018 from the Chilean Comisión Calificadora de Competencias en Recursos y Reservas

Mineras).

The estimate of copper recovery is based on historical plant performance between 2010 and

October 31, 2017, on column tests reported by SGS Minerals Services as an independent

laboratory, and on column and heap tests operated by MTV at the mine site.

13.1.1 Plant Operation

The MTV plant was commissioned in late 2010 and since then crushing, heap leaching, solvent

extraction, and electrowinning were operated with variable cathode production rates due to

operational considerations such as ramp up, lower feed grades than design, curtailed production

due to low prices, etc. To date, the company has treated mixed copper ore from Papomono and

Don Gabriel, as well as external and ENAMI copper oxide ore. External sources refer to small

scale, local, miners from which the company purchases material for processing. ENAMI is

Empresa Nacional de Mineria, a state minerals company that purchases and processes ore and

refines copper from Chile’s small and medium-scale miners.

Table 13-1 shows an annual summary for the total dry metric tons (DMT) of ore crushed and

stacked, indicating as well the sequential chemical analysis related to total copper (TCu), and the

constituent components comprising acid soluble copper (ASCu), cyanide soluble copper

(CNCu), and insoluble or residual copper (RCu). The total historical amount of ore treated until

October 31, 2017 corresponds to 6,139,043 dry metric tons, containing 1.22% total copper.

Year

Crushed &

stacked ore

DMT

Copper grade

Total

% TCu

Acid soluble

% ASCu

Cyanide soluble

% CNCu

Residual

% RCu

2010 46,682 1.24 0.51 0.67 0.07

2011 992,179 1.20 0.80 0.28 0.11

2012 1,737,696 1.02 0.67 0.25 0.11

2013 1,569,583 1.06 0.73 0.23 0.10

2014 556,898 2.00 1.84 0.07 0.09

2015 281,602 1.84 1.62 0.12 0.10

2016 436,677 1.30 0.78 0.38 0.14

2017* 517,726 1.17 0.69 0.33 0.14

Total 6,139,043 1.22 0.87 0.25 0.11

Table 13-1. Copper Ore Crushed and Stacked in the MTV Plant since Startup.

* Until October 31, 2017.




March 29, 2018


The material by source and its sequential copper analysis is shown on Table 13-2.

Source

Crushed &

stacked ore

DMT

Copper grade

Total

% TCu

Acid

soluble

% ASCu

Cyanide

soluble

% CNCu

Residual

% RCu

Papomono* 3,018,231 0.97 0.46 0.37 0.13

Don Gabriel 1,197,363 0.73 0.49 0.15 0.10

External 959,301 1.70 1.55 0.10 0.05

ENAMI 964,147 2.14 1.92 0.11 0.11

Total 6,139,043 1.22 0.87 0.25 0.11

Table 13-2. Origin of Treated Copper Ore between 2010 and October 31, 2017.

* Mixture of Papomono (~1.7% TCu) with Cumbre (~0.6% TCu).

The determination of historical accumulated copper recovery until October 31, 2017 is achieved

by comparing the cathode production with copper fines contained in the crushed and stacked ore.

The leaching cycle of recently stacked ore has not yet been concluded. Also, there is copper

present in process solutions and in cathodes not yet harvested. Therefore the copper pending to

be recovered by October 31, 2017, i.e., the recoverable copper being leached plus the

recoverable copper in solutions plus the hanging copper in electro-winning tanks, has to be

added to the overall historical cathode copper production in order to determine the accurate

copper recovery of the plant.

Table 13-3 outlines the annual and accumulated copper recovery based exclusively on cathode

production, without including recoverable copper available in the plant by October 31, 2017.

Year

Copper fines in

treated ore

tCuf

Copper

cathode

production

tCuf

Annual copper

recovery

%

Accumulated

copper

recovery

%

2010 581 247 42.56 42.56

2011 11,862 8,839 74.51 73.02

2012 17,721 14,029 79.17 76.63

2013 16,628 12,490 75.11 76.09

2014 11,144 8,238 73.92 75.67

2015 5,185 5,771 111.29 78.60

2016 5,672 5,412 95.41 79.99

2017* 6,037 4,966 82.26 80.17

Total 74,830 59,991 80.17 80.17

Table 13-3. Copper Recovery Based on Copper Cathode Production.

* Until October 31, 2017.

In 2015 the annual copper recovery exceeded 100%. This is because in 2014 the Papomono and

Don Gabriel mining operations were shut down and inventory on the leach pads and process

solutions was drawn down during 2015.




March 29, 2018


The Papomono mine was reopened in September 2015 to provide plant feed to compensate for a

lack of third party material due to low prices.

The estimated recoverable copper fines available in the plant by October 31, 2017 are shown on

Table 13-4.

Item Copper stock

tCuf

Copper cathodes hanging in EW cells 42.4

Copper in ore to be leached on heaps 1,259.4

Copper in leach solutions, SX organic, and electrolyte 114.0

Total 1,415.8

Table 13-4. Estimated Recoverable Copper in the Plant on October 31, 2017.

By adding the recoverable copper available on October 31, 2017 to the historical copper cathode

production, the copper recovery reaches 82.06%, presented on Table 13-5 as corrected copper

recovery. The copper recovery considers the global amount of Papomono, Don Gabriel, external,

and ENAMI materials, all of them crushed at approximately P80 below 1/2” and P50 below 1/4”.

In April 2017, the quaternary crusher was added after the tertiary crusher and since then crushing

improved gradually to P95 below 1/2” and P~71-74 below 1/4”, until October, 2017. Currently the

plant is coordinating some final adjustments for achieving in an overall particle size distribution

of P95 below 1/2” and P80 below 1/4” to improve overall recovery.

Item Amount

Copper cathodes produced (tCuf) 59,991

Recoverable copper stock (tCuf) 1,416

Expected copper production (tCuf) 61,407

Copper fines in treated ore (tCuf) 74,830

Corrected copper recovery (%) 82.06

Table 13-5. Corrected Copper Recovery as of October 31, 2017.

13.1.2 Metallurgical Test Work

13.1.2.1 SGS Column Tests

To evaluate copper recovery, column tests were performed at SGS Minerals Services in 2011

with samples from Papomono and Don Gabriel. In addition column and heap tests were operated

by MTV at the mine site in 2016 and 2017 for fresh samples of Papomono and Don Gabriel

material, taken after improved access to both deposits.

After plant startup in 2010, twelve leaching columns of 0.19 m diameter (6 columns of 6 m and 6

units of 3 m) were set up at SGS Minerals Services, being operated between February 3rd

and

October 18th

, 2011 during 267 and 273 days. The 6m columns (Columns 1-6) were loaded first




March 29, 2018


with 3m of heap leach tailings at the lower part and 3m of acid agglomerated fresh ore on the

top. The 3m columns (Columns 7-12) were loaded only with acid agglomerated fresh ore.

Consequently, all twelve columns generated comparable copper recovery results for the 3m of

acid agglomerated ore.

The SGS column tests considered four columns of high grade (HG) copper-bearing material

from Papomono (3.72% and 4.06% total copper), four columns of low grade (LG) copper-

bearing material from Papomono (1.02% and 1.17% total copper), and four columns of copper-

bearing material from Don Gabriel (1.21% and 1.23% total copper). Six columns were loaded

with P95 below 1/2” and P50 below 1/4” material and six columns were loaded with P95 below

1/2” and P80 below 1/4” material. On Table 13-6 the sequential analysis is shown for fresh

agglomerated material in the 6 m and 3 m columns.

Source Papomono (HG) Papomono (LG) Don Gabriel

Columns 1 & 7 4 & 10 2 & 8 5 & 11 3 & 9 6 & 12

Size P95<½” &

P50<¼"

P95<½”

&

P80<¼"

P95<½” &

P50<¼"

P95<½” &

P80<¼"

P95<½” &

P50<¼"

P95<½” &

P80<¼"

Total Cu (%TCu) 3.720 4.060 1.023 1.170 1.210 1.230

Acid sol. Cu (%ASCu) 1.240 1.000 0.603 0.690 0.940 0.950

Cyanide sol. Cu

(%CNCu) 2.410 3.020 0.383 0.390 0.190 0.180

Residual Cu (%RCu) 0.070 0.040 0.037 0.090 0.080 0.100

Table 13-6. Copper Head Grades for SGS Column Tests.

All columns operated the first 91 days under chemical leaching and the remaining days, until

completing a total leach cycle of 267 and 273 days, under bacterial leaching conditions. It has to

be pointed out that the MTV plant has been operating with primary (“Oxide”) and secondary

(“Sulfide”) leaching under chemical leaching conditions during the whole leaching cycle, taking

advantage of the ferric ion generated during leaching of the oxides and sulfides. Besides, the

SGS column tests used synthetic solutions with 0.5 g/l Cu, 8 g/l sulfuric acid, and 5 g/l Fe in the

chemical leaching period, followed by 0.1 g/l Cu, 5 g/l sulfuric acid, and 5 g/l Fe in the bacterial

leaching period. There are differences between the SGS column tests and the definitive plant

operation related to ferric versus bacterial leaching, as well as synthetic solutions versus presence

of impurities, as shown on Table 13-7 for primary (“Oxide”) and secondary (“Sulfide”) PLS.

The high concentration of total sulfate in the MTV plant caused inconveniences to achieve the

desired bacterial leaching effect, and was replaced by chemical ferric leaching of cyanide soluble

sulfide mineral.




March 29, 2018


Element Units Oxide PLS Sulfide PLS

Total iron g/l TFe 12.2 11.7

Ferrous ion g/l Fe2+

8.8 9.3

Manganese g/l Mn 2.96 2.99

Magnesium g/l Mg 18.8 19.0

Aluminum g/l Al 18.9 18.1

Total sulfate g/l SO42-

207 224

pH - 2.2 2.2

Total suspended solids ppm TSS 16 13

Viscosity cP 5.0 4.8

Table 13-7. Analysis of Impurities in PLS (September 2017 Composite).

On Table 13-8 and Table 13-9 the copper recovery of the SGS column tests are shown for the 3m

of fresh agglomerated material, once the leaching cycle was completed. The copper recovery

results, as shown, are based on head/tailings analysis. It is remarkable that the lower grade

copper material from Papomono showed excellent copper recovery results, even exceeding the

higher grade copper material from Papomono.


Column 1 4 2 5 3 6

TCu recovery (%) 91.2 93.9 91.2 94.8 81.8 87.6

ASCu recovery (%) 93.1 92.6 94.7 97.6 84.1 91.4

CNCu recovery (%) 91.3 95.6 90.3 94.1 74.9 77.6

RCu recovery (%) 56.2 0.8 45.0 76.7 71.7 69.3

Table 13-8. Copper Recovery for the First 3m of the 6m SGS Column Tests (Columns 1-6).


Column 7 10 8 11 9 12

TCu recovery (%) 86.9 92.1 90.3 92.9 77.8 85.9

ASCu recovery (%) 90.1 90.0 94.7 96.4 83.2 89.3

CNCu recovery (%) 88.6 94.2 88.5 91.7 67.9 77.4

RCu recovery (%) - - 36.0 70.7 37.9 69.0

Table 13-9. Copper Recovery for the 3m SGS Column Tests (Columns 7-12).

An interesting aspect of the SGS column tests is that samples were taken for each meter of

loaded agglomerated ore in the twelve columns, as well for each equivalent meter of tailings. On

Table 13-10 and Table 13-11 the copper recovery is shown for the top meter of each column.




March 29, 2018



Columns 1 4 2 5 3 6

TCu recovery (%) 96.5 97.6 91.7 95.6 84.2 90.9

ASCu recovery (%) 96.4 98.0 94.7 98.3 87.9 94.0

CNCu recovery (%) 97.3 98.7 90.9 94.6 74.2 80.6

RCu recovery (%) 72.9 7.5 51.4 80.0 65.0 80.0

Table 13-10. Copper Recovery in the Top Meter of the 6m SGS Column Tests (Cols 1-6).


Columns 7 10 8 11 9 12

TCu recovery (%) 93.4 95.0 93.5 95.9 80.5 92.4

ASCu recovery (%) 96.9 96.3 97.7 98.6 85.3 94.7

CNCu recovery (%) 93.3 95.7 91.4 94.4 72.1 85.0

RCu recovery (%) 37.1 15.0 45.9 82.2 43.8 83.0

Table 13-11. Copper Recovery in the Top Meter of the 3m SGS Column Tests (Cols 7-12).

The SGS column test results are used as convenient reference information, as an acceptable

copper recovery was obtained with leaching cycles around 270 days. The comparison factors

between P80 below 1/4” against P50 below 1/4” (with P95 below 1/2” in both cases) are of great

interest as well. The copper recovery control per column meter represents an important tool for

leaching optimization, such as sulfuric acid addition to the agglomeration drum and specification

of the heap height.

It is also noted that the finer crush size, P80 < ¼”, Columns 4, 5, 6, 10, 11, and 12, demonstrate a

higher increase in recovery for Don Gabriel than Papomono.

13.1.2.2 MTV Heap and Column Tests

As part of the chloride media leach project described in Section 13.2, MTV performed control

test columns and heaps during 2016 and 2017 at the mine site with fresh samples of Papomono

and Don Gabriel material. The tests were performed for different leaching conditions for about

120 to 140 days in order to achieve high copper recovery in comparison to current leaching

conditions for an equivalent leaching cycle. The present statement takes into consideration, in

particular, the tests for Heap 26A and Heap 26B, as well as the tests for Column 1 and Column 7,

which were performed under leaching conditions currently being applied in the plant.

The tests were performed under equivalent conditions to the plant, considering the same leaching

solutions, heap height (3m for test heaps and columns), irrigation rates, and leaching cycle (two

steps). The only differences were particle size (P93.5<1/2” and P63.0<1/4” for Don Gabriel as well

as P96.1<1/2” and P59.9<1/4” for Papomono) and the number of operation days. The heaps and

columns were loaded with acid agglomerated fresh material (agglomerated at 10kg H2SO4/DMT)

and the irrigation rate was around 6 to 9 L/h/m2. The copper grades for the heap and column

tests are shown respectively on Table 13-12 and Table 13-13.




March 29, 2018


Heap Heap 26A Heap 26B

Source Don Gabriel Papomono

Particle size P93.5<½” & P63.0<¼” P96.1<½” & P59.9<¼”

Dry Material (kg) 626,755 630,781

Head

Total Cu (%TCu)

Acid sol. Cu (%ASCu)

Cyanide sol. Cu (%CNCu)

Residual Cu (%RCu)

0.95

0.27

0.60

0.08

1.59

0.52

0.82

0.25

Tailings

Total Cu (%TCu)



Residual Cu (%RCu)

0.40

0.05

0.13

0.22

0.51

0.09

0.17

0.25

Table 13-12. Head and Tailings Copper Grades for MTV Heap Tests.

Column Column 1 Column 7


Particle Size P93.5<½” & P63.0<¼” P96.1<½” & P59.9<¼”

Dry Material (kg) 245 219

Head

Total Cu (%TCu)



Residual Cu (%RCu)

0.95

0.27

0.60

0.08

1.59

0.52

0.82

0.25

Table 13-13. Head Copper Grades for MTV Column Tests.

The copper recovery for the heap tests is given in Table 13-14 and the copper recovery for the

column tests in Table 13-15.

Heap Heap 26A Heap 26B


Days of Operation 132.9 133.3

Head/solution

TCu recovery (%)

58.2

68.2

Head/tailings

TCu recovery (%)

ASCu recovery (%)

CNCu recovery (%)

RCu recovery (%)

57.9

81.5

78.3

-

67.9

82.7

79.3

0.0

Table 13-14. Copper Recovery for Heap Tests at ~130 Days of Operation.




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Column Column 1 Column 7


Days of operation 141.3 120.3

Head/solution

TCu recovery (%)

56.7

63.5

Table 13-15. Copper Recovery for Column Tests at ~130 Days Average Operation.

The copper recovery curves associated with the heap and column tests as well as their

extrapolation to 300 days of leaching operation are further discussed in Section 13.1.4.

13.1.3 Recovery Model

The overall copper recovery model is based on material from Papomono and Don Gabriel in the

relative proportions and average grades shown on Table 13-16. The Papomono deposit has

higher copper grade in comparison to Don Gabriel in reference to total copper, acid soluble

copper, and cyanide soluble copper. The insoluble or residual copper is similar in both deposits.

The mineralogy of both mining properties is similar, except that Don Gabriel requires P80 below

1/4”, instead of P50 below 1/4”, in order to achieve acceptable copper recovery. Therefore, when

the mining operation of Don Gabriel was reopened in early 2017, the available quaternary

crushing equipment was commissioned shortly thereafter.

Source

% of

Mineralized

Material

Copper grade

Total

% TCu

Acid

soluble

% ASCu

Cyanide

soluble

% CNCu

Residual

% RCu

Papomono 42% 1.32 0.31 0.90 0.09

Don Gabriel 58% 0.91 0.11 0.68 0.11

Total 100% 1.08 0.19 0.77 0.10

Table 13-16. Estimated Material Distribution and Grades for Recovery Model.

By comparing the copper grades on Table 13-16 with grades from both deposits with the

historical material treated in the MTV plant, excluding the material from Cumbre, the total

copper grade increased by 20% with 59% less acid soluble copper and 150% more cyanide

soluble copper. The cyanide soluble copper component has encouraging results in the plant, SGS

column tests, and MTV heap and column test work.

Based on available information by October 31, 2017, mineral characteristics and sequential

copper grades, the copper recovery statement for Papomono and Don Gabriel mineralized

material is presented on Table 13-17. This copper recovery considers 300 days of a double

leaching cycle, treating crushed material of P95 below 1/2” and P73 below 1/4”.

The total copper recovery expected for Papomono mineralized material is 81.9% and the total

copper recovery expected for Don Gabriel mineral reserves is 78.5%.




March 29, 2018


Source Copper recovery

%

Papomono

Total copper (TCu)

Acid soluble copper (ASCu)

Cyanide soluble copper (CNCu)

Residual copper (RCu)

81.9

90.0

85.0

35.0

Don Gabriel

Total copper (TCu)

Acid soluble copper (ASCu)

Cyanide soluble copper (CNCu)

Residual copper (RCu)

78.5

88.0

85.0

35.0

Table 13-17. Estimated Copper Recovery for Papomono and Don Gabriel at 300 Days

Leaching Cycle with P95 < 1/2” and P80 < 1/4”.

The combination of both mineralized material, Papomono and Don Gabriel, allows establishing a

combined copper recovery of 80.2%, as shown on Table 13-18.

Source

% of

Mineralized

Material

Total copper

grade

% TCu

Copper

recovery

%

Papomono 42% 1.32 81.9

Don Gabriel 58% 0.91 78.5

Total 100% 1.08 80.2

Table 13-18. Estimated Combined Copper Recovery for Papomono and Don Gabriel at 300

Days Leaching Cycle with P95 < 1/2” and P80 < 1/4”.

13.1.4 Recovery Curves

Based on historical plant operation and test work performed at the MTV plant during the years

2016 and 2017, leaching kinetics were obtained for calculation purpose under different leaching

cycles and changing mineralized material characteristics for every year during the project life.

These curves are shown on Figure 13-1 for Papomono and on Figure 13-2 for Don Gabriel.

The column test for Papomono (Column 7) had the same mineral characteristics in comparison to

the test with Heap 26B. An amount of 219 kg of dry material was used in the 3m column test

and 630,781 kg of dry material under acid agglomerated conditions was placed on Heap 26B.

The material was crushed to P96.1 below 1/2” and P59.9 below 1/4”.




March 29, 2018


Figure 13-1. Copper Recovery for Heap and Column Tests for Papomono (Heap 26B and

Column 7), Extrapolated to a 300 Day Leaching Cycle.




March 29, 2018


Figure 13-2. Copper Recovery for Heap and Column Tests for Don Gabriel (Heap 26A and

Column 1), Extrapolated to a 300 Day Leaching Cycle.

In addition, the column test for Don Gabriel (Column 1) had the same mineral characteristics in

comparison to the test with Heap 26A. An amount of 245 kg of dry material was used in the 3m

column test and 626,755 kg of dry material under acid agglomerated conditions was placed on

Heap 26A. The material was crushed to P93.5 below 1/2” and P63.0 below 1/4”.

On Table 13-19 the extrapolated copper recoveries for 300 days of leaching are indicated for the

test conditions.

Source

Cu recovery for test

conditions

%

Cu recovery extrapolated

to 300 days

%

Papomono 78.8 81.9

Don Gabriel 81.6 78.5

Table 13-19. Comparison of Copper Recovery between Test Conditions and Extrapolated

to 300 Days.

The estimated leaching kinetics for copper recovery is shown on Figure 13-3 for Papomono and

Don Gabriel. The leaching kinetics is determined for calculation purpose specifically for acid

soluble copper, cyanide soluble copper, and residual copper.




March 29, 2018


Figure 13-3. Copper Recovery for Don Gabriel and Papomono Based on the Copper

Recovery Models.

13.1.5 Acid Leach Recovery Summary

A copper recovery model was developed to estimate leaching kinetics for the Papomono and

Don Gabriel mineralized material, based on individual copper recovery curves related to acid

soluble copper, cyanide soluble copper, and residual copper. This model may be used as well for

calculation purpose, in case the leaching cycle is diminished to less than 300 days or the

composition of the mineralized material and operational parameters of the plant change during

project life.

In view of high impurities content in the Sulfide PLS, bacterial leaching of cyanide soluble

copper and insoluble copper, as analyzed, has been replaced by ferric leaching, virtually since

plant startup in 2010. The copper recovery statement is based on a ferric concentration of at least

3 g/l Fe3+

in sulfide PLS.

Both Papomono and Don Gabriel mineralized material are very sensitive to acid consumption.

The sulfuric acid addition to agglomeration and the sulfuric acid concentration in both raffinate

flows to heaps should be reviewed and optimized frequently as a function of ore characteristics,

getting metallurgical test work support. Such support should be available, as well, for testing

several ferric concentrations and ferric/ferrous ratios in leaching.

Insufficient acid additions to agglomeration and/or to raffinates for heap irrigation may cause a

copper recovery drop, whereas excessive acid additions promote the dissolution of unwanted

impurities. The heap height of 3 meters should be reduced, if necessary.




March 29, 2018


Based on the performed test work, there is no indication that crushing the ore at P80 below 1/4”

may cause permeability problems at an irrigation rate of 8 to 10 L/h-m2.

Acid leach recovery estimates for Don Gabriel and Papomono have been developed based on

historic plant performance between 2010 and October 31, 2017, on column tests reported by SGS

Minerals Services as an independent laboratory, and on column and heap tests operated by MTV

at mine site. The estimated copper recovery for Papomono is 82% and the estimated copper

recovery for Don Gabriel is 78.5%, for mineralized material as stated in Table 13-16.

The main assumptions for these copper recovery estimates include:

Plant feed crushed to P95 below 12.7 mm (1/2”) and P80 below 6.4 mm (1/4”),

Minimum ferric concentration of 3 g/l Fe3+

in sulfide PLS,

Leaching cycle of 300 days, and

Heap height of 3m.

The current crushing plant is capable of the stated size distribution, and the ferric concentration,

leach cycle and heap height assumptions are consistent with current practice in the plant.

GV does not know of any deleterious elements that could have a significant effect on potential

economic extraction. Recoveries, in particular for the Don Gabriel Manto, are dependent on the

particle size distribution discussed above. Failure to meet that will impact recovery and hence

economics.




March 29, 2018


13.2 Chloride Leach Process

Processes studies and columns tests conducted by MTV indicated an opportunity to improve

sulfide copper recovery results by using a chloride media leaching. This was verified by

industrial tests, with material from the Papomono and Don Gabriel deposits, that it is possible to

obtain an increment close to 10% on copper recovery, a significant reduction of leaching cycle

time and also a reduction in sulfuric acid consumption at the leaching stage.

Based on these studies, MTV retained Propipe S.A. to carry out a prefeasibility study to define

the infrastructure required to implement leaching using salt (NaCl), in order to benefit from the

expected increase in the recovery and reduced leaching cycle, for sulfide copper treatment.

The objective of this section is to provide an estimate of the achievable copper recovery for

Papomono and Don Gabriel ore under chloride leach conditions, based on the report ORYXEIO-

MTV-2018-R02-0 from February 2018 (Certificate of Qualified Competency CM-682-032018

from the Chilean Comisión Calificadora de Competencias en Recursos y Reservas Mineras).

13.2.1 Chloride Leach Test Program

Based on exploratory column tests of only one meter, the decision was taken to operate six three

meter columns and two heaps of three meter height for Don Gabriel and six three meter columns

and two heaps of three meter height for Papomono.

Don Gabriel columns were labeled as Column 1 (C1) to Column 6 (C6) and Don Gabriel heaps

as Heap 25A and Heap 26A. Papomono columns were labeled as Column 7 (C7) to Column 12

(C12) and the Papomono heaps as Heap 25B and Heap 26B.

The test program scheduled to operate the columns and the heaps in parallel. For Columns 1 and

7, as well as for Heaps 26A and 26B there was no sodium chloride salt addition in agglomeration

and no additional chloride concentration increase in the irrigation flow during leaching. The

chloride concentration in leach solutions was around 0.005 to 0.010 g/l Cl.

Heaps 25A and 25B operated with sodium chloride additions in agglomeration, nevertheless

without additional chloride concentration increase in the irrigation flow. Columns 2 and 8

operated under equivalent conditions.

All remaining columns had respectively the same sodium chloride additions in agglomeration as

Heaps 25A (Don Gabriel) and 25B (Papomono), and miscellaneous chloride concentrations were

applied on irrigation flows during leaching. The chloride concentrations scheduled in these

column tests were 15 g/l in Column 3 and Column 9, 30 g/l in Column 4 and Column 10, 60 g/l

in Column 5 and Column 11, and 90 g/l in Column 6 and Column 12.

13.2.1.1 Column Leach Test Conditions

The leach conditions of the twelve 3 meter columns are described on Table 13-20 and Table 13-

21, respectively for Don Gabriel (C1-C6) and Papomono (C7-C12) column leach test conditions.




March 29, 2018


The Don Gabriel columns began their effective leaching on October 9, 2016 and the Papomono

columns began their effective leaching on October 23, 2016, both right after agglomeration and a

rest period of approximately 30 days.

Condition Column 1 Column 2 Column 3 Column 4 Column 5 Column 6

Agglomerated ore (kg) 256 284 253 263 274 254 Dry ore (kg) 245 262 234 243 260 235

Total copper (%TCu) 0.95 1.06 1.06 1.06 1.06 1.06 Acid soluble copper (%ASCu) 0.27 0.21 0.21 0.21 0.21 0.21 Cyanide sol. copper (%CNCu) 0.60 0.70 0.70 0.70 0.70 0.70 Residual copper (%RCu) 0.08 0.15 0.15 0.15 0.15 0.15

Particle size below 1/2" (%) 93.5 93.5 93.5 93.5 93.5 93.5 Particle size below 1/4" (%) 63.0 63.0 63.0 63.0 63.0 63.0

Agglomerated ore: H2SO4 (kg/DMT) 10.3 11.0 11.0 11.0 11.0 11.0 NaCl (kg/DMT) 0.0 21.0 21.0 21.0 21.0 21.0 H2O (%) 3.6 5.3 4.9 5.2 2.3 4.9

Initial leaching date 09-10-16 09-10-16 09-10-16 09-10-16 09-10-16 09-10-16 Leaching cycle (days) 141.3 121.3 121.3 121.3 121.3 121.3

First 30 irrigation days: Irrigation rate (m

3/h-m

2) 8.0 8.0 8.0 8.0 8.0 8.0

Average acid (g/L H2SO4) 8.0 8.0 8.1 8.3 8.5 8.7 Average chloride (g/L Cl) 0.0 0.0 15.5 30.5 61.4 91.3 Average total iron (g/L TFe) 10.9 10.9 10.9 11.0 10.6 10.4 Average ferric iron (g/L Fe

3+) 2.7 2.7 2.8 3.0 2.7 2.7

Irrigation after 30 days: Irrigation rate (m

3/h-m

2) 4.0-6.0 4.0-6.0 4.0-6.0 4.0-6.0 4.0-6.0 4.0-6.0


3+) 1.9 1.9 3.6 3.1 3.4 3.5

Table 13-20. Don Gabriel Column Leach Test Conditions – Chloride Leach

In order to compare the column leach tests with the heap leach tests, the following was applied:

The heap material was agglomerated and transferred to the columns alternatively from

the material placed on the heaps or from the trucks transporting the aforementioned

agglomerated material to the heaps. This procedure was applied on Don Gabriel material

for Heap 26A and Column 1 without any salt addition in agglomeration, and on

Papomono material for Heap 26B and Column 7 without any salt addition in

agglomeration. The procedure was applied as well on Don Gabriel material for Heap

25A and Columns 2 to 6, with salt addition in agglomeration, and on Papomono material

for Heap 25B and Columns 8 to 12, with salt addition in agglomeration as well.

The agglomerated material transferred to the columns had variable moisture content. For

a suitable column leach mass balance it was necessary to determine the equivalent

amount of dry solids loaded into the columns. For this purpose the proportional amounts

of salt and sulfuric acid added to agglomeration was discounted, besides of the effective

moisture content of the agglomerated material, as analyzed.




March 29, 2018


Condition Column 7 Column 8 Column 9 Column 10 Column 11 Column 12

Agglomerated ore (kg) 240 238 242 236 242 243 Dry ore (kg) 219 211 214 209 215 215

Total copper (%TCu) 1.59 1.62 1.62 1.62 1.62 1.62 Acid soluble copper (%ASCu) 0.52 0.50 0.50 0.50 0.50 0.50 Cyanide sol. copper (%CNCu) 0.82 1.01 1.01 1.01 1.01 1.01 Residual copper (%RCu) 0.25 0.11 0.11 0.11 0.11 0.11

Particle size below 1/2" (%) 96.1 96.1 96.1 96.1 96.1 96.1 Particle size below 1/4" (%) 59.9 59.9 59.9 59.9 59.9 59.9

Agglomerated ore: H2SO4 (kg/DMT) 16.0 16.0 16.0 16.0 16.0 16.0 NaCl (kg/DMT) 0.0 32.0 32.0 32.0 32.0 32.0 H2O (%) 7.0 8.0 8.0 8.0 8.0 8.0

Initial leaching date 23-10-16 23-10-16 23-10-16 23-10-16 23-10-16 23-10-16 Leaching cycle (days) 120.3 120.3 120.3 120.3 120.3 120.3

First 30 irrigation days: Irrigation rate (m

3/h-m

2) 8.0 8.0 8.0 8.0 8.0 8.0


3+) 2.6 2.6 3.6 3.9 3.3 3.9


3/h-m

2) 4.0-6.0 4.0-6.0 4.0-6.0 4.0-6.0 4.0-6.0 4.0-6.0

Average acid (g/L H2SO4) 6.9 2.5 3.3 3.5 3.6 3.8 Average chloride (g/L Cl) 0.0 0.0 ~15 ~30 ~60 ~90 Average total iron (g/L TFe) 10.9 10.7 12.8 12.1 11.2 11.8 Average ferric iron (g/L Fe

3+) 2.4 1.9 3.9 3.6 2.8 3.2

Table 13-21. Papomono Column Leach Test Conditions – Chloride Leach

During the column leach tests the daily solution volumes of plant raffinate solutions

added to the columns were measured and analyzed. The daily solution volumes drained

from the columns were measured and analyzed as well. The daily total copper recoveries

and daily acid consumptions were calculated, the daily ferric and total iron concentrations

were analyzed, besides of other controls registered during the respective column leach

cycles.

The column leach tailings were analyzed for total copper, acid soluble copper, cyanide

soluble copper, and residual copper. These chemical analyses allow determining the

feed/tailings copper recovery. The feed/solution copper recovery was obtained by

controlling and analyzing the daily in and out solution volumes. For both copper

recovery determinations the sequential copper analysis of the feed to the respective heaps

was taken into account.

13.2.1.2 Heap Leach Test Conditions

The four heap tests considered two heaps with salt-agglomerated material and two heaps without

salt-agglomerated material. Two heaps each were stacked with Don Gabriel material and two

heaps with Papomono material. The heap leach test conditions are summarized on Table 13-22.




March 29, 2018


For the purpose of comparison with Column 1 (Don Gabriel without salt), Column 2 (Don

Gabriel with salt), Column 7 (Papomono without salt) and Column 8 (Papomono with salt), the

sampling for the heap leach tests was done with a similar procedure as used for the column leach

tests. Once the leach cycles were concluded, 12 to 15 drilling samples were taken and analyzed

for each heap, considering then an average value of all obtained sequential copper analyses.

The heaps were irrigated in the flat area on the top of the heap, evaluating the tonnage of stacked

material below the top area on each heap test. At the end of the leach cycle the same area was

drilled and sampled in depth by using suitable drilling equipment for tailings. Copper recoveries

were obtained by feed/solution and by feed/tailings determinations. The average values for Don

Gabriel and Papomono total copper recoveries provide a reasonable result for the heap leach

tests, as will be shown in the next section.

Condition Don Gabriel Papomono

Heap 25A Heap 26A Heap 25B Heap 26B

Agglomerated ore (kg) 655,986 656,445 713,878 684,786 Dry ore (kg) 624,154 626,755 632,871 630,781

Total copper (%TCu) 1.06 0.95 1.62 1.59 Acid soluble copper (%ASCu) 0.21 0.27 0.50 0.52 Cyanide sol. copper (%CNCu) 0.70 0.60 1.01 0.82 Residual copper (%RCu) 0.15 0.08 0.11 0.25

Particle size below 1/2" (%) 93.5 93.5 96.1 96.1 Particle size below 1/4" (%) 63.0 63.0 59.9 59.9

Agglomerated ore: H2SO4 (kg/DMT) 11.0 10.0 16.0 16.0 NaCl (kg/DMT) 21.0 0.0 32.0 0.0 H2O (%) 1.9 3.6 8.0 7.0

Leaching start (date) 09-10-16 09-10-16 23-10-16 23-10-16 Leaching cycle (days) 132.9 132.9 133.3 133.3

First 30 days irrigation: Irrigation rate (m

3/h-m

2) 8.2 8.2 7.9 7.9

Average acid (g/L H2SO4) 7.9 7.8 8.0 7.8 Average chloride (g/L Cl) 0.0 0.0 0.0 0.0 Average total iron (g/L TFe) 11.3 11.3 10.5 10.6 Average ferric iron (g/L Fe

3+) 2.9 2.8 2.0 2.0


3/h-m

2) 6.2 7.5 6.1 7.4

Average acid (g/L H2SO4) 3.3 6.0 2.9 6.3 Average chloride (g/L Cl) 0.0 0.0 0.0 0.0 Average total iron (g/L TFe) 11.7 11.8 11.9 12.0 Average ferric iron (g/L Fe

3+) 2.7 3.1 2.7 3.2

Table 13-22. Don Gabriel and Papomono Heap Leach Test Conditions – Chloride Leach




March 29, 2018


13.2.2 Chloride Leach Test Results

All test heaps were irrigated for 133 days, whereas the test columns were irrigated for 120 to 141

days. Ahead of irrigation, the agglomerated Don Gabriel and Papomono material had a rest

period of one day for Column 1, Column 7, Heap 26A, and Heap 26B (tests without salt), and a

rest period of 30 days for all other heaps and columns (tests with salt). During the rest period the

agglomerated material was wetted frequently in view of water evaporation, without causing

solution drainage.

13.2.2.1 Column Leach Test Results

The column leach test results for Don Gabriel are indicated on Table 13-23 and for Papomono on

Table 13-24.

Under planned plant operation, the addition of sodium chloride into the agglomeration drum will

transfer chloride into the leach solution. The definitive chloride level in leach solutions will

depend on several operating factors and for that reason several chloride concentrations like 0, 15,

30, 60, and 90 g/l chloride levels were scheduled for the test work.

Item Column 1 Column 2 Column 3 Column 4 Column 5 Column 6

Head grade: Total copper (%TCu) 0.95 1.06 1.06 1.06 1.06 1.06 Acid soluble copper (%ASCu) 0.27 0.21 0.21 0.21 0.21 0.21 Cyanide sol. copper (%CNCu) 0.60 0.70 0.70 0.70 0.70 0.70 Residual copper (%RCu) 0.08 0.15 0.15 0.15 0.15 0.15

Tailings grade: Total copper (%TCu) 0.48 0.24 0.25 0.22 0.23 0.24 Acid soluble copper (%ASCu) n.a. 0.04 0.04 0.04 0.04 0.03 Cyanide sol. copper (%CNCu) n.a. 0.18 0.14 0.13 0.14 0.14 Residual copper (%RCu) n.a. 0.02 0.07 0.05 0.05 0.07

Recovery by solutions: TCu recovery (%) 56.7% 64.6% 70.1% 70.8% 68.0% 76.3%

Recovery by tailings: TCu recovery (%) 49.5% 77.4% 76.4% 79.2% 78.3% 77.4% ASCu recovery (%) - 81.0% 81.0% 81.0% 81.0% 85.7% CNCu recovery (%) - 74.3% 80.0% 81.4% 80.0% 80.0% RCu recovery (%) - 86.7% 53.3% 66.7% 66.7% 53.3%

Table 13-23. Don Gabriel Column Test Results – Chloride Leach




March 29, 2018


Item Column 7 Column 8 Column 9 Column

10 Column

11 Column

12

Head grade: Total copper (%TCu) 1.59 1.62 1.62 1.62 1.62 1.62 Acid soluble copper (%ASCu) 0.52 0.50 0.50 0.50 0.50 0.50 Cyanide sol. copper (%CNCu) 0.82 1.01 1.01 1.01 1.01 1.01 Residual copper (%RCu) 0.25 0.11 0.11 0.11 0.11 0.11

Tailings grade: Total copper (%TCu) 0.48 0.32 0.33 0.26 0.26 0.34 Acid soluble copper (%ASCu) n.a. 0.09 0.09 0.08 0.11 0.11 Cyanide sol. copper (%CNCu) n.a. 0.18 0.20 0.15 0.12 0.19 Residual copper (%RCu) n.a. 0.05 0.04 0.03 0.03 0.04

Recovery by solutions: TCu recovery (%) 63.0% 72.4% 73.8% 75.2% 76.4% 86.6%

Recovery by tailings: TCu recovery (%) 69.8% 80.2% 79.6% 84.0% 84.0% 79.0% ASCu recovery (%) - 82.0% 82.0% 84.0% 78.0% 78.0% CNCu recovery (%) - 82.2% 80.2% 85.1% 88.1% 81.2% RCu recovery (%) - 54.5% 63.6% 72.7% 72.7% 63.6%

Table 13-24. Papomono Column Test Results – Chloride Leach

Based on test results and observations made in other plants, the leach solutions will increase the

chloride concentrations up to a level where chloride loss equilibrates with the chloride input or

feed. By reaching a chloride level in the leach solution of approximately 5 to 15 g/l chloride, the

impact on total copper recovery of the chloride level above such concentration will be minor.

Such observation was noticed in the chloride column tests at MTV for Don Gabriel and

Papomono.

As the heaps operated without chloride in leach solutions, only the average copper recoveries of

Columns 3 to 6 were considered for Don Gabriel and the average copper recoveries of Columns

9 to 12 were considered for Papomono. The test Columns 2 and 8 were not included in the

aforementioned average values, as these columns were irrigated in absence of chloride in the

raffinate solutions, being such a situation not representative of future plant operation, whenever

sodium chloride salt is added in agglomeration.




March 29, 2018


On Table 13-25 the respective copper recovery is shown for the evaluated chloride column tests,

in reference to Don Gabriel and Papomono.

Item Don Gabriel

Average Columns 3-6 Papomono

Average Columns 9-12

Head grade: Total copper (%TCu) 1.06 1.62 Acid soluble copper (%ASCu) 0.21 0.50 Cyanide sol. copper (%CNCu) 0.70 1.01 Residual copper (%RCu) 0.15 0.11

Tailings grade: Total copper (%TCu) 0.24 0.30 Acid soluble copper (%ASCu) 0.04 0.10 Cyanide sol. copper (%CNCu) 0.14 0.17 Residual copper (%RCu) 0.06 0.04

Recovery by solutions: TCu recovery (%) 71.3% 78.0%

Recovery by tailings: TCu recovery (%) 77.8% 81.6% ASCu recovery (%) 82.1% 80.5% CNCu recovery (%) 80.4% 83.7% RCu recovery (%) 60.0% 68.2%

Table13-25. Average Don Gabriel and Papomono Column Test Results – Chloride Leach

13.2.2.2 Heap Leach Test Results

As previously discussed, two heaps were operated with Don Gabriel agglomerated material

(Heaps 25A and 26A) and two heaps were operated with Papomono agglomerated material

(Heaps 25B and 26B). Two of the four heaps were agglomerated with sodium chloride and

sulfuric acid, considering a rest period of 30 days and an acid irrigation period of 133 days

(Heaps 25A and 25B). The other two heaps were agglomerated without sodium chloride under

current conditions, considering a rest period of only one day and the same irrigation period of

133 days (Heaps 26A and 26B).

The heap leach test results are summarized on Table 13-26.




March 29, 2018


Item Don Gabriel Papomono

Heap 25A Heap 26A Heap 25B Heap 26B

Head grade: Total copper (%TCu) 1.06 0.95 1.62 1.59 Acid soluble copper (%ASCu) 0.21 0.27 0.50 0.52 Cyanide sol. copper (%CNCu) 0.70 0.60 1.01 0.82 Residual copper (%RCu) 0.15 0.08 0.11 0.25

Tailings grade: Total copper (%TCu) 0.32 0.40 0.35 0.51 Acid soluble copper (%ASCu) 0.06 0.05 0.11 0.09 Cyanide sol. copper (%CNCu) 0.11 0.13 0.11 0.17 Residual copper (%RCu) 0.15 0.23 0.12 0.25

Recovery by solutions: TCu recovery (%) 69.9% 58.2% 78.0% 68.2%

Recovery by tailings: TCu recovery (%) 70.0% 57.5% 78.5% 68.1% ASCu recovery (%) 73.4% 82.5% 77.3% 83.2% CNCu recovery (%) 84.3% 78.3% 88.8% 79.8% RCu recovery (%) - - - -

Table 13-26. Don Gabriel and Papomono Heap Test Results – Chloride Leach

13.2.3 Column and Heap Leach Comparison

For Don Gabriel, the only column leach results with sodium chloride addition only in

agglomeration is Column 2, to be compared with Heap 25A, where sodium chloride was added

as well in agglomeration. In both cases chloride was not added to leach solutions.

For Papomono, the only column leach results with sodium chloride addition only in

agglomeration is Column 8, to be compared with Heap 25B, where sodium chloride was added

as well in agglomeration. In both cases chloride was not added to leach solutions.

The copper recovery of the aforementioned columns and heaps are indicated on Table 13-27.

The results do not show a clear recovery trend, besides the observation that the heaps provide

less copper recovery difference between feed/solution and feed/tailings.

Concerning Don Gabriel, the average (total) copper recovery of Heap 25A is 70.0% and the

average (total) copper recovery of Column 2 is 71.0%. Both copper recoveries are lower than

the average (total) copper recovery of Columns 3 to 6 of 74.6%, considering feed/solution and

feed/tailings recoveries.

In reference to Papomono, the average (total) copper recovery of Heap 25B is 78.3% and the

average (total) copper recovery of Column 8 is 76.3%. Both copper recoveries are lower than the

average copper recovery of Columns 9 to 12 of 79.8%, considering the average value of

feed/solution and feed/tailings recoveries.




March 29, 2018


Item Don Gabriel Papomono

Heap 25A Column 2 Heap 25B Column 8

Head grade: Total copper (%TCu) 1.06 1.06 1.62 1.62 Acid soluble copper (%ASCu) 0.21 0.21 0.50 0.50 Cyanide sol. copper (%CNCu) 0.70 0.70 1.01 1.01 Residual copper (%RCu) 0.15 0.15 0.11 0.11

Tailings grade: Total copper (%TCu) 0.32 0.24 0.35 0.32 Acid soluble copper (%ASCu) 0.06 0.04 0.11 0.09 Cyanide sol. copper (%CNCu) 0.11 0.18 0.11 0.18 Residual copper (%RCu) 0.15 0.02 0.12 0.05

Recovery by solutions: TCu recovery (%) 69.9% 64.6% 78.0% 72.4%

Recovery by tailings: TCu recovery (%) 70.0% 77.4% 78.5% 80.2% ASCu recovery (%) 73.4% 81.0% 77.3% 82.0% CNCu recovery (%) 84.3% 74.3% 88.8% 82.2% RCu recovery (%) - 86.7% - 54.5%

Table13-27. Don Gabriel and Papomono Heap and Column Test Results Comparison

Chloride Leach

Based on the previous two paragraphs, it is possible to observe a copper recovery increase of 2.6

to 4.0% when chloride is added also to leach solutions instead of just in agglomeration. This

increase is slightly higher when the average copper recovery of columns C3-C6 and C9-C12 is

compared with the copper recovery of Column 2 and Column 8, respectively.

13.2.4 Impact of Salt Addition in Agglomeration

The current operation at MTV considers traditional agglomeration with concentrated sulfuric

acid and water. Salt additions during agglomeration generate oxidizing conditions, suitable to

improve the copper recovery of copper sulfides.

In order to amplify the oxidizing ambient, a rest period is recommended after agglomeration.

Preliminary evaluation tests for 1 day, 15 days, and 30 days showed that 30 days of rest period

improved sulfation up to approximately 45%. The meaning of such behavior is that up to 45% of

the copper could be dissolved within the first few days just by rinsing the agglomerated material.

Such preliminary sulfation test results are shown on Table 13-28, where total copper sulfation of

chalcocite mineral is compared for different mesh sizes (100% below 1/2” or 100% below 1/4”),

chloride additions in agglomeration (10, 20, or 30 kg Cl/DMT), and rest periods (15 days or 30

days).




March 29, 2018


Chloride Dose kg Cl/DMT

Total Copper Sulfation (%)

Mesh-1/2” Mesh-1/4”

15 days 30 days 15 days 30 days

0 9.2 8.2 11.2 10.2 10 27.6 34.4 40.3 41.3 20 29.5 36.8 42.9 45.4 30 33.9 43.6 45.4 48.0

Table 13-28. Preliminary Sulfation Test Results – Chloride Leach

By comparing both screen sizes and taking into account the average values, a sulfation increase

of 41.3% is obtained for 15 days and a sulfation increase of 17.3% for 30 days of rest period, in

favor of the 100% below 1/4” screen size.

In summary, the sodium chloride addition accelerates the initial leaching kinetics and such

behavior enables reducing the leach cycle.

13.2.5 Chloride Presence in Leach Solutions

All test heaps operated with few parts per million (ppm) chloride in leach solutions. Based on

the results from Section 13.2.3, the absence of chloride in leach solution causes a slightly lower

copper recovery. Nevertheless, significant copper recovery differences are not observed by

comparing levels between 15, 30, 60, and 90 g/l chloride in leach solutions.

Columns 6 and 12 had some interruption in the leach cycle, due to precipitation problems of

sulfate salts. High chloride levels like 90 g/l showed test inconveniences due to high salt

additions to the leach solution. This kind of salt addition is not practiced in plant operations, as

sodium chloride is added to agglomeration and the chloride concentration in leaching will build

up gradually until steady chloride concentrations are achieved.

13.2.6 Crushed Ore Screen Size

The SGS Minerals Services column tests performed in 2011 showed a significant copper

recovery improvement particularly for the Don Gabriel mineralized material, once a finer

particle size is reached after crushing. MTV is planning to operate the whole crushing plant,

including tertiary and quaternary crushing. Under such conditions MTV is planning to achieve

P95 below 1/2” and P80 below 1/4”. The SGS column tests showed significant recovery

improvements at this crush size, particularly for Don Gabriel. At the time of this report the

product size is about 75% passing 1/4”.

13.2.7 Recovery Model

The overall copper recovery model is based on material from Papomono and Don Gabriel in the

relative proportions and average grades as was shown on Table 13-16. The Papomono deposit

has higher copper grade in comparison to Don Gabriel in reference to total copper, acid soluble

copper, and cyanide soluble copper. The insoluble or residual copper is similar in both deposits.




March 29, 2018


The mineralogy of both mining properties is similar, except that Don Gabriel requires P80 below

1/4”, instead of P50 below 1/4”, in order to achieve acceptable copper recovery. On this basis,

when the mining operation of Don Gabriel was reopened in early 2017, the available quaternary

crushing equipment was re-commissioned shortly thereafter.

Based on information made available by February 10, 2018, the range of copper recovery for

Papomono and Don Gabriel resources is shown on Table 13-29. The copper recovery considers

an effective leach period between 120 and 180 days for material crushed at P95 below 1/2” and

P80 below 1/4”.

The estimated copper recovery for Papomono is 87% and the estimated copper recovery for Don

Gabriel is 85%, both at 160 days of effective leaching, considering adequate salt additions in

agglomeration.

Source

Copper recovery (%)

Leach cycle 120 days




Papomono

Total copper

Acid soluble copper

Cyanide soluble copper

Residual copper

83.3

82.8

86.0

70.1

85.0

84.4

87.7

73.0

86.6

85.9

89.2

75.7

88.0

87.2

90.5

78.1

Don Gabriel

Total copper

Acid soluble copper

Cyanide soluble copper

Residual copper

82.8

87.9

86.0

64.2

84.1

89.2

87.4

66.0

85.4

90.4

88.6

67.6

86.6

91.6

89.8

69.2

Table 13-29. Estimated Recovery for Papomono and Don Gabriel under Chloride Leach

Conditions at 120, 140, 160, and 180 Days Leaching with Feed Crushed at P95 < 1/2” and

P80 < 1/4”.

The copper recoveries indicated on Table 13-29 are based on the following conditions:

The material to be leached is similar to what is shown on Table 13-16.

The material is crushed at P95 < 1/2” and P80 < 1/4”.

The amount of sulfuric acid and sodium chloride are adjusted to requirements determined

as convenient in agglomeration.

Rest period for agglomerated material of 30 days.

Heap height of 3 meters.

Irrigation flow of 8 L/h-m2 during 30 to 60 days in primary or oxide leach.

Complete leach cycle of 120 to 180 days.

Minimum of 10 g/l total iron, 10 g/l chloride, 3 g/l ferric and 8 g/l sulfuric acid

concentration in primary or oxide leach.

Minimum of 3 g/l ferric and 10 g/l chloride in secondary or sulfide leach.




March 29, 2018


13.2.8 Copper Recovery Curves

Based on the test work performed at the MTV plant during the years 2016 and 2017, leaching

kinetics curves under chloride leaching conditions were obtained for calculation purpose under

different leaching cycles and changing mineral characteristics for every year during the project

life. These curves are shown in comparison to the average column test results (scaled to total

copper recovery by tailings) under chloride leaching conditions on Figure 13-4 for Don Gabriel

and on Figure 13-5 for Papomono, extrapolating the recovery model to a 180 day leaching cycle

in each case. The comparison of the copper recovery model with the individual (unscaled)

column test results are shown on Figure 13-6 for Papomono and on Figure 13-7 for Don Gabriel.

Figure 13-4. Copper Recovery for Don Gabriel Column Tests (Average of Columns 3 to 6,

Scaled to Total Copper Recovery by Tailings), and Extrapolated to a 180 Day Leaching

Cycle under Chloride Leaching Condition.

Figure 13-5. Copper Recovery for Papomono Column Tests (Average of Columns 9 to 12,

Scaled to Total Copper Recovery by Tailings), and Extrapolated to a 180 Day Leaching

Cycle under Chloride Leaching Conditions.




March 29, 2018


Figure 13-6. Copper Recovery for Don Gabriel Column Tests (Columns 3 to 6, Unscaled),

and Extrapolated to a 180 Day Leaching Cycle under Chloride Leaching Conditions.

Figure 13-7. Copper Recovery for Papomono Column Tests (Columns 9 to 12, Unscaled),

and Extrapolated to a 180 Day Leaching Cycle under chloride leaching conditions.

The estimated total copper recovery kinetics up to 180 days for the Don Gabriel and Papomono

mineralized material based on the copper recovery model under chloride conditions is shown on

Figure 13-8. The copper recoveries correspond to crushed material at P95 < 1/2” and P80 < 1/4”.




March 29, 2018


Figure 13-8. Copper Recovery for Don Gabriel and Papomono under Chloride Leach

Conditions.

13.2.9 Summary of Chloride Leach

Chloride leach recovery estimates for Don Gabriel and Papomono have been developed based on

column tests and test heaps. The estimates are 88% for Papomono and 87% for Don Gabriel.

The estimates are based on the following assumptions and parameters:

Particle size distribution of crushed mineral content to P95 < 12.7 mm (1/2 inch) and P80 <

6.4mm (¼ inch),

Leach cycle of 180 days and heap height of 3m,

Minimum chloride concentration of 10 g/l Cl-, ferric above 3 g/l Fe

3+, and a minimum

total iron concentration of 10 g/l TFe in leach solutions,

The agglomeration process is carried out with NaCl, process water and sulfuric acid,

The agglomerated material needs a rest period of 30 days before leaching, a period in

which the material is kept moist,

After the resting period, leaching is carried out.

The acid agglomeration for sulfide copper, allows recoveries close to 60%; when salt is added in

agglomeration process, an important increase in recovery is observed in times close to 180 days,

considering a rest period of 30 days. Comparing Tables 13-29 with 13-17 indicates a 10.3%

increase in recovery for Don Gabriel (86.6% versus 78.5%) and a 7.4% increase for Papomono

(88.0% versus 81.9%).

It is observed that the best results are obtained with a dosage of 21 kg NaCl / ton of feed for Don

Gabriel material.




March 29, 2018


The current crushing plant is capable of the stated size distribution, and the ferric and total iron

concentration, and the leach cycle and heap height assumptions are consistent with current

practice.

GV does not know of any deleterious elements that could have a significant effect on potential

economic extraction. Recoveries, in particular for the Don Gabriel Manto, are dependent on the

particle size distribution discussed above. Failure to meet these assumptions will impact

recovery and hence economics.




March 29, 2018


14.0 Mineral Resource Estimates

14.1 Mineral Resource

Table 14-1 presents the mineral resource for the Minera Tres Valles Copper Project.

Table 14-1. Mineral Resource

Mining CuT CuT CuS CuCn CuR Copper

Resource Class Method Cutoff(%) Ktonnes (%) (%) (%) (%) (klbs)

Measured Mineral Resource



PPM Massivo UG 0.34 2,449 1.941 0.466 1.339 0.136 104,796

PPM Cumbre OP 0.19 266 0.485 0.069 0.378 0.037 2,844

PPM Cumbre UG 0.34 0 0.000 0.000 0.000 0.000 0


PPM South UG 0.58 634 1.275 0.244 0.949 0.082 17,821

Epithermal UG 0.65 0 0.000 0.000 0.000 0.000 0

PPM North OP 0.19 102 0.956 0.584 0.222 0.150 2,150

North Manto UG 0.58 834 1.082 0.498 0.522 0.063 19,894

Measured Mineral Resource 5,530 1.416 0.366 0.939 0.111 172,674

Indicated Mineral Resource



PPM Massivo UG 0.34 891 1.623 0.428 1.082 0.113 31,881

PPM Cumbre OP 0.19 2,388 0.540 0.096 0.388 0.056 28,429

PPM Cumbre UG 0.34 351 0.478 0.040 0.414 0.024 3,699


PPM South UG 0.58 989 0.998 0.319 0.583 0.096 21,760


North Manto UG 0.58 633 0.967 0.441 0.459 0.067 13,495

Indicated Mineral Resource 12,774 0.868 0.200 0.561 0.108 244,581

Meas/Ind Mineral Resource



PPM Massivo UG 0.34 3,340 1.856 0.456 1.270 0.130 136,676

PPM Cumbre OP 0.19 2,654 0.534 0.093 0.387 0.054 31,273

PPM Cumbre UG 0.34 351 0.478 0.040 0.414 0.024 3,699


PPM South UG 0.58 1,623 1.106 0.290 0.726 0.091 39,581


North Manto UG 0.58 1,467 1.032 0.473 0.495 0.065 33,389

Meas/Ind Mineral Resource 18,304 1.034 0.250 0.675 0.109 417,255Inferred Mineral Resource


Don Gabriel Veins UG 0.64 2,020 1.331 0.137 1.043 0.151 59,273

PPM Massivo UG 0.34 22 2.643 0.415 1.977 0.251 1,282PPM Cumbre OP 0.19 537 0.664 0.167 0.416 0.081 7,861

PPM Cumbre UG 0.34 298 0.530 0.066 0.426 0.038 3,482


PPM South UG 0.58 111 0.947 0.399 0.379 0.168 2,317

Epithermal UG 0.65 223 1.011 0.476 0.207 0.328 4,970

PPM North OP 0.19 13 2.903 0.496 2.227 0.180 832

North Manto UG 0.58 37 1.387 0.702 0.387 0.298 1,131

Inferred Mineral Resource 3,457 1.108 0.188 0.770 0.149 84,408




March 29, 2018


The mineral resource estimate is as of January 1, 2018 and is inclusive of the mineral reserves.

Measured and indicated mineral resources amount to 18.3 million tonnes at 1.034% total copper

(“CuT”) for 417.3 million contained pounds. Inferred mineral resource is an additional 3.46

million tonnes at 1.108% total copper for 84.4 million contained pounds. The table also shows

grades for acid soluble copper (“CuS”), cyanide soluble copper (“CuCn”), and residual copper

(“CuR”) since these components are used for metal recovery calculations.

To establish “reasonable prospects for eventual economic extraction” as required by NI 43-101,

estimated unit costs for mining, processing, G&A, and solvent extraction/electrowinning

(“SXEW”), as well as process recoveries have been developed to calculate appropriate cutoff

grades for mining. Table 14-3 summaries these parameters. The resources are based on a copper

price of US$ 3.30 per pound finished copper.

Process costs and recoveries are based on crushing and heap leaching with sulfuric acid. It is

also planned that salt will be added to the leach solutions to add chlorine ions to assist

dissolution, particularly of the chalcocite, i.e. chloride leach. The recoveries were incorporated

into the model on a block by block basis using the equations on Table 13-29. It can be seen on

Table 14-2 that average recoveries vary by deposit due to variations in the acid soluble, cyanide

soluble, and residual copper components.

With these parameters, the average copper recovery is estimated at about 87% for the Don

Gabriel Manto and Veins. The copper recovery for the various PPM deposits range from 85%

for the Epithermal Vein to 90% for Massivo.

The process costs for crushing, agglomeration, leaching, and SX/EW, as well as the cost for

G&A and Services were estimated by Propipe and are documented in the report “Compania

Minera Tres Valles – Prefeasibility Study – Chloride Media Leaching”.

It is assumed that the Don Gabriel Manto, PPM North and a portion of Cumbre will be mined by

open pit methods by a mining contractor. Estimated contract mining costs are $2.35 and $2.15

per tonne for ore and waste respectively. These are based on a quotation from a recognized

Chilean contract mining company. This estimate includes the cost for geology, mine

engineering, and ore control.

The ore haulage cost is estimated at $2.21 per tonne for Don Gabriel and $1.76 for Papomono,

and is based on a contractor quote. The one-way haulage distances are about 17km from Don

Gabriel and 12km from Papomono.

The resources for Don Gabriel Manto, PPM North and Cumbre are tabulated inside Lerchs-

Grossman (LG) shells run with the economic and recovery parameters. Figure 14-1 through 14-

3 shows these shells. Measured, indicated, and inferred mineral resources were allowed to

contribute to the economics to develop the shells.



March 29, 2018


Table 14-2. Economic Parameters for Mineral Resource Estimates 2/17/2018

Units DG Manto DG Veins Massivo Cumbre Cumbre Connection PPM South Epithermal PPM North Nth Manto

Commodity Prices

Copper Price per Pound (US$) 3.30 3.30 3.30 3.30 3.30 3.30 3.30 3.30 3.30 3.30

Dilution and Ore Loss

Dilution (%) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Ore Loss (%) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Mining Cost per Tonne

Proposed Mining Method Open Pit

Sub-level

Stoping Block Caving Open Pit Block Caving Front Caving Front Caving

Sub-level

Stoping Open Pit Front Caving

Mining Cost Per Ore Tonne (US$) 2.35 24.00 8.40 2.35 8.40 22.00 22.00 24.00 2.35 22.00

Mining Cost Per Waste Tonne (US$) 2.15 N.A. N.A. 2.15 0.00 N.A. N.A. N.A. 2.15 N.A.

Processing Cost per Ore Tonne

Crushing (US$) 1.56 1.56 1.56 1.56 1.56 1.56 1.56 1.56 1.56 1.56

Agglomeration (US$) 3.07 3.07 3.07 3.07 3.07 3.07 3.07 3.07 3.07 3.07

Leaching (US$) 4.20 4.20 4.20 4.20 4.20 4.20 4.20 4.20 4.20 4.20

Process Cost (US$) 8.83 8.83 8.83 8.83 8.83 8.83 8.83 8.83 8.83 8.83

Ore Haulage (US$) 2.21 2.21 1.76 1.76 1.76 1.76 1.76 1.76 1.76 1.76

Total Process and Ore Haulage (US$) 11.04 11.04 10.59 10.59 10.59 10.59 10.59 10.59 10.59 10.59

G&A and Services per Pound

General and Administrative (US$) 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14

Services (US$) 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10

G&A and Services (US$) 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24

Average Recovery

Total Copper (%) 87% 87% 89% 89% 89% 87% 89% 85% 89% 90%

SX/EW Cost per Pound

Solvent Extraction (US$) 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05

Electrowinning (US$) 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15

SX/EW Cost (US$) 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20

Cutoff Grades (Total Copper)

Internal (Mining is Sunk Cost) (%) 0.20 N.A. N.A. 0.19 N.A. N.A. N.A. N.A. 0.19 N.A.

Breakeven (%) 0.24 0.64 0.34 0.23 0.34 0.59 0.58 0.65 0.23 0.58




March 29, 2018


The estimated internal cutoff grades for the Don Gabriel Manto, PPM North, and Cumbre pits

are 0.20%, 0.19% and 0.19% total copper respectively. Internal cutoff grade applies to blocks

that have to be removed from the pit, so mining is considered a sunk cost. The blocks only have

to pay processing, ore haulage, G&A, SXEW, and the $0.20 differential between ore and waste

mining cost. The resources for the open pits on Table 14-1 are based on internal cutoff grade.

For the underground deposits proposed underground mining methods were selected for each

deposit and approximate mining costs for the various methods estimated. The proposed methods

and costs are:

Block Caving Massivo, Cumbre $8.40 per ore tonne

Front Caving PPM South, Connection, North Manto $22.00 per ore tonne

Sub-level Stoping DG Veins, Epithermal $24.00 per ore tonne

There is a portion of Cumbre beneath the existing and potential open pit that might be amenable

to underground mining. Estimated breakeven cutoff grades for each deposit are shown on Table

14-3. The mineral resources for underground mining for each deposit are tabulated at these

cutoff grades.

The mineral resources are in-situ estimates. IMC has not included any dilution or ore loss

assumptions in the estimates. This will be done during the evaluation of potential mineral

reserves.

The mineral resources are classified in accordance with the Canadian Institute of Mining,





reasonable expectation that all necessary permits and approvals will be obtained and maintained.

There is no guaranty that any of the mineral resources will be converted to mineral reserve.

There is also no guaranty that any of the inferred mineral resources will be upgraded to measured

or indicated mineral resource or to mineral reserve.

IMC does not believe that there are significant risks to the mineral resource estimates based on





forecast, or costs higher than the current estimates. There could also be geologic risk if

additional drilling reduces the current resource estimates or results in more erratic deposit

geometries that prove difficult to mine.



March 29, 2018


Figure 14-1. Don Gabriel Manto Resource Cone Shell, IMC 2018



March 29, 2018


Figure 14-2. PPM North Resource Cone Shell, IMC 2018



March 29, 2018


Figure 14-3 Cumbre Resource Cone Shell, IMC 2018




March 29, 2018


14.2 Description of the Block Models

The mineral resources are based on block models developed by IMC from October 2017 to

February 2018. There are two block models, one for the Don Gabriel Manto and veins, and one

for the seven Papomono deposits.

14.2.1 Don Gabriel

14.2.1.1 General

The resource block model was developed by IMC during October and November 2017; it was

completed on November 29, 2017. The model is based on 5m by 5m by 5m blocks and includes

the Don Gabriel Manto and veins in the same model. The model is rotated 45o to align with the

strike of the veins.

14.2.1.2 Geologic Controls

MTV personnel provided the following geologic solids Don Gabriel model:

The Don Gabriel Manto interpreted at a copper cutoff grade of about 0.2%,

A sandstone volcanic unit that is below the manto,

As intrusive sill unit that is above the manto,

An intrusive unit that is related to the Don Gabriel veins, and

Twenty-two mineralized, near vertical, veins.

IMC reviewed and incorporated the MTV solids for the sandstone, intrusive sill, the intrusive

related to the veins, and the Don Gabriel veins into the updated block model.

IMC did, however, develop an updated interpretation for the manto unit. IMC’s interpretation

was developed using the Leap Frog implicit modeling software. The interpretation was

developed based on the 1m assay intervals and was also based on a 0.2% copper grade.

Parameters provided for the interpretation included the approximate strike and dip of the manto

unit and factors to elongate the interpretation in the strike and dip directions versus the tertiary

direction, i.e. to preserve the general shape of the unit. This interpretation was incorporated into

the IMC model.

It is noted that the Don Gabriel Manto interpretation is based on individual assays and it should

be considered an in-situ representation of mineralization and minimal mining dilution is

incorporated into the model.




March 29, 2018


The rock type model for Don Gabriel, model variable “rock”, is defined as follows:

Table 14-3. Don Gabriel Model Rock Codes

IMC Code Description

10 Upper Sill

20 Sandstone

30 Intrusion

50 Don Gabriel Manto

60 Don Gabriel Veins

70 Host Rock

90 Waste or Fill

The codes for the Upper Sill, Sandstone, and Intrusion were assigned to the nearest whole block,

i.e. the code was assigned if more than 50% of the block was included in the solid. The Don

Gabriel Manto and veins, codes 50 and 60, were coded on a partial block basis, i.e. these blocks

were coded if any portion of the solid was included in them. Figure 14-4 shows a cross section

of the Don Gabriel rock types. Figure 10-3 shows the location of the cross section.

IMC also included geologic variables “vein” and “pct_vein” to code the Don Gabriel Manto and

the individual veins and the decimal percent (0 to 1) of the block in the manto or vein. The vein

codes were from 1 to 22 and the manto was coded as vein 50. Figure 14-5 shows the

approximate locations and identifiers for the Don Gabriel veins. Comparing this figure with

Figure 10-3 shows them to be in the northwest portion of the model area. The N45oW strike of

the vein system is also evident in the figure.



March 29, 2018


Figure 14-4. Don Gabriel Rock Types on Section 10, IMC 2017



March 29, 2018


Figure 14-5. Don Gabriel Veins, IMC 2017




March 29, 2018


14.2.1.3 Cap Grades and Compositing

Don Gabriel Manto

IMC reviewed the distribution of assays in the manto and capped assays at 3.4% total copper.

This was at the 98 percentile so 2% of the assays were impacted. This is 84 assays with a mean

value of 4.25% total copper. Figure 14-6 shows a probability plot for original assays (green) and

capped assays (red) in the manto. Figure 14-7 shows the probability plot for 5m composites.

For sample intervals with capped total copper assays, IMC reduced the soluble copper assays by

the same proportion that the total copper assays were reduced. For example, for a 4% copper

assay capped at 3.4% total copper all the soluble copper assays were also factored by 3.4/4.0 or

0.85.

The soluble copper assays were generally not completed when total copper was less than 0.2%

and a considerable number of assays in the manto are lower than this threshold. This truncation

of the lower end of the distribution could result in a distortion of the soluble copper block grade

estimates, unless corrected.

It was also noted that the manto somewhat naturally divides into an upper portion that is oxide

dominant, acid soluble copper > cyanide soluble copper, and a lower portion that is sulfide

dominant, acid soluble copper < cyanide soluble copper. Figure 14-8 shows assays in the manto

that illustrates this. Note that the cyanide soluble assay follows the acid soluble assay, so it only

measures mineral that is not acid soluble in character; chalcocite or bornite would be the most

common copper minerals species.

IMC filled in the missing soluble copper assays as follows. For oxide dominant material the acid

soluble copper was set to 0.70 x total copper and the cyanide soluble copper was set to 0.15 x

total copper. For sulfide dominant material the soluble copper was set to 0.15 x total copper and

the cyanide soluble copper was set to 0.70 x total copper. These ratios are based on the statistics

for the oxide and sulfide dominant populations for the available assays. Note that these filled in

missing values are mostly place holders in the lower grade data; some variance in these values

won’t have a material impact on final results.

The assay database was then composited to 5m composites, respecting the manto contacts, i.e.

only assays in the manto were composited. Single assays down to 1m in length were allowed to

form a composite in narrow zones.

Table 14-4 shows summary statistics for assays and 5m composites for: 1) all assays/composites

in the manto, 2) capped values, 3) uncapped assays greater than 0.2% copper, and 4) capped

assays greater than 0.2% copper. For composites, it can be seen that 802 out of 917 composites

are above 0.2% copper, or 87.5% of the composites exceed the nominal design cutoff of 0.2%

copper. For assays 3,237 of the 4,316 assays (75.0%) are above the 0.2% threshold. This is a

good result with only 25.0% of the assays in the manto below 0.2% copper.




March 29, 2018


Figure 14-6. Probability Plot of Assays in Don Gabriel Manto – Total Copper

Figure 14-7. Probability Plot of 5m Composites in Don Gabriel Manto – Total Copper




March 29, 2018


Table 14-8. Oxide Versus Sulfide Dominant Assays in Don Gabriel Manto




March 29, 2018


Table 14-4. Summary Statistics of Assays and Composites in DG Manto-Total Copper

Assays

All All >= 0.2% Cu >=0.2% Cu

Parameter Uncapped Capped Uncapped Capped

Number of Samples 4,316 4,316 3,237 3,237

Mean 0.757 0.740 0.984 0.962

Standard Deviation 0.865 0.799 0.889 0.808

Minimum 0 0 0.2 0.2

Maximum 6.54 3.40 6.54 3.40

5m Composites

All All >= 0.2% Cu >=0.2% Cu

Parameter Uncapped Capped Uncapped Capped

Number of Samples 917 917 802 802

Mean 0.720 0.706 0.805 0.789

Standard Deviation 0.591 0.555 0.584 0.544

Minimum 0.005 0.005 0.20 0.20

Maximum 3.60 2.89 3.60 2.89

Don Gabriel Veins

IMC reviewed the distribution of assays in the veins and capped assays at 4.4% total copper.

During the analysis it was noted that hole PPM-DGAB-DH0059 accounted for 28 of 104 vein

assays exceeding 4% total copper. This is a near vertical hole that went down vein 15. The cap

grade is at the 95 percentile of the assays in the veins, except that DH0059 was excluded for the

determination of the percentile ranking. Capped assays amount to 79 assays with a mean value

of 6.1% total copper. Figure 14-9 shows a probability plot for original assays (green) and capped

assays (red) in the manto. Figure 14-10 shows the probability plot for 5m composites.

As with the Don Gabriel Manto, for sample intervals with capped total copper assays, the soluble

copper assays were reduced by the same proportion that the total copper assays were reduced.

Figure 14-11 shows the plot of cyanide soluble versus acid soluble copper assays for 1m assay

intervals. This illustrates that the veins are predominantly sulfide dominant mineralization.

As with the Don Gabriel Manto, there are assay intervals in the veins where the soluble copper

assays were not done. IMC filled in the missing soluble copper assays as follows. For oxide

dominant material the acid soluble copper was set to 0.82 x total copper and the cyanide soluble

copper was set to 0.10 x total copper. For sulfide dominant material the soluble copper was set

to 0.075 x total copper and the cyanide soluble copper was set to 0.82 x total copper.




March 29, 2018


Figure 14-9. Probability Plot of Assays in Don Gabriel Veins – Total Copper

Figure 14-10. Probability Plot of 5m Composites in Don Gabriel Veins – Total Copper




March 29, 2018


Figure 14-11. Oxide versus Sulfide Dominant Assays in Don Gabriel Veins




March 29, 2018


The assay database was then composited to nominal 5m composites, respecting the vein contacts,

i.e. only assays in the vein were composited. Single assays down to 1m in length were allowed

to form a composite if they were the only assay in the hole to intersect the vein.

Tables 14-5 and 14-6 show summary statistics by vein for assays and 5m composites

respectively. Each table shows the number of holes that intersect each vein, the number of

samples contained in each vein, and the mean, standard deviation, and maximum value for total

copper for uncapped and capped data. It can be seen that veins 5, 6, 10, 11, and 16 are

intersected by 2 or less holes. Veins 12, 14, 15, and 17 are intersected by 7 or more holes. Note

that only 36 holes intersect the veins. Most of the holes intersect multiple veins, so the

summation of the number of holes column for all veins is considerably greater than 36.

Based on the probability plots (Figures 14-9 and 14-10) it can be seen that 80% of the assays in

the veins exceed 0.2% total copper; 20% of the assays are less than 0.2% copper. For

composites, about 92% of the composites exceed 0.2% total copper.

Table 14-5. Summary Statistics for Assays in Don Gabriel VeinsNot Capped Assays Capped at 4.4% CuT

No. of No. of Mean Std Dev Max Mean Std Dev Max

Vein Holes Samples %Cu %Cu %Cu %Cu %Cu %Cu

V1 3 31 0.722 1.002 4.27 0.722 1.002 4.27

V2 3 30 0.482 0.320 1.22 0.482 0.320 1.22

V3 4 84 1.848 1.703 5.55 1.791 1.598 4.40

V4 6 30 1.179 1.508 7.36 1.081 1.143 4.40

V5 2 11 2.015 1.191 4.18 2.015 1.191 4.18

V6 2 30 1.532 1.198 4.91 1.515 1.151 4.40

V7 4 80 1.492 1.494 8.00 1.424 1.279 4.40

V8 5 94 1.451 1.592 6.29 1.380 1.416 4.40

V9 4 33 0.558 0.521 2.10 0.558 0.521 2.10

V10 2 9 0.993 0.824 3.10 0.993 0.824 3.10

V11 1 7 0.451 0.413 1.37 0.451 0.413 1.37

V12 8 74 1.043 1.283 5.95 1.006 1.161 4.40

V13 5 71 1.312 1.427 7.34 1.245 1.204 4.40

V14 8 65 1.449 2.538 12.60 1.049 1.347 4.40

V15 10 209 2.329 2.286 9.15 1.987 1.645 4.40

V16 2 24 0.264 0.379 1.52 0.264 0.379 1.52

V17 7 100 0.696 0.760 3.43 0.696 0.760 3.43

V18 6 101 1.154 1.460 9.28 1.063 1.063 4.40

V19 3 36 1.031 1.320 5.25 0.988 1.189 4.40

V20 6 62 0.834 0.909 4.01 0.834 0.909 4.01

V21 4 40 0.523 0.471 1.71 0.523 0.471 1.71

V22 3 16 0.786 0.708 2.88 0.786 0.708 2.88

TOTAL 36 1237 1.332 1.662 12.60 1.222 1.314 4.40

Note: Most holes intersect more than 1 vein.




March 29, 2018


Table 14-6. Summary Statistics for Composites in Don Gabriel VeinsNot Capped Assays Capped at 4.4% CuT

No. of No. of Mean Std Dev Max Mean Std Dev Max

Vein Holes Samples %Cu %Cu %Cu %Cu %Cu %Cu

V1 3 6 0.699 0.563 1.78 0.699 0.563 1.78

V2 3 7 0.500 0.084 0.60 0.500 0.084 0.60

V3 4 17 1.750 1.535 4.42 1.696 1.443 4.06

V4 6 9 1.067 0.928 3.22 0.992 0.739 2.53

V5 2 3 1.827 0.654 2.56 1.827 0.654 2.56

V6 2 6 1.532 0.824 3.01 1.515 0.788 2.91

V7 4 16 1.475 0.977 3.99 1.407 0.839 3.18

V8 5 15 1.395 1.322 4.76 1.324 1.146 4.10

V9 4 7 0.586 0.147 0.73 0.586 0.147 0.73

V10 2 2 0.923 0.453 1.24 0.923 0.453 1.24

V11 1 2 0.451 0.232 0.62 0.451 0.232 0.62

V12 8 15 1.064 0.979 3.31 1.034 0.937 3.20

V13 5 15 1.222 0.906 3.41 1.163 0.780 2.61

V14 8 15 1.338 1.820 5.60 0.991 1.082 3.27

V15 10 39 2.290 1.867 7.17 1.959 1.329 4.40

V16 2 4 0.268 0.179 0.51 0.268 0.179 0.51

V17 7 21 0.681 0.519 2.01 0.681 0.519 2.01

V18 6 19 1.169 1.095 5.09 1.072 0.764 3.31

V19 3 8 0.944 0.787 2.57 0.908 0.706 2.30

V20 6 13 0.842 0.647 2.24 0.842 0.647 2.24

V21 4 7 0.509 0.233 0.88 0.509 0.233 0.88

V22 3 5 0.808 0.552 1.69 0.808 0.552 1.69

TOTAL 36 251 1.277 1.281 7.17 1.175 1.017 4.40


14.2.1.4 Block Grade Estimation

Don Gabriel Manto

IMC conducted a variogram analysis of the 5m composites in the Don Gabriel Manto. The

manto strikes N70oW with an approximate 30

o SW dip. Figure 14-12 shows the variogram in the

strike direction, the primary direction. The nugget to sill ratio is relatively high. This is a

pairwise relative variograms. This method has some data smoothing built into the calculations.

For pairwise relative variograms the sill should theoretically tend to the variance divided by the

mean squared of the data and is dimensionless. This would be about 0.67 for this data. The fit

sill of 0.54 is lower than this value.

IMC estimated block grades for total copper, acid soluble copper, and cyanide soluble copper

using inverse distance with a power weight of 2 (ID2). The search radii are 55m along strike,

45m down dip, and 20m in the tertiary direction, and are consistent with the variogram ranges in

the various directions. A maximum of eight composites, a minimum of two composites, and also




March 29, 2018


a maximum of two composites per hole were used in the estimation. The effect of inverse

distance weighting along with a relatively low number of composites should produce relatively

unsmoothed estimates of block grades based on the composites, i.e. the estimates should not be

overly smeared.

The grade estimates were reviewed on cross sections and appear to follow the mineral trends

evident in the composites well. Figure 14-13 shows a cross section of total copper block grades.

Don Gabriel Veins

The Don Gabriel veins strike N45oW with a near vertical dip. The search radius was 75m along

strike, 75m down dip, and 30m in the tertiary direction. A maximum of eight composites, a

minimum of one composite, and also a maximum of two composites per hole were used in the

estimation. Total copper and the various soluble copper grades were estimated with the same

parameters. It is noted that these are longer search radii and a lower minimum number of

composites than was used for the manto. This was to fill in most of the vein blocks with a grade

estimate. Note however that not all of this potentially mineralized material is classified as

potential mineral resource.

After the grade estimates were completed for the manto and veins, a check was made for blocks

with acid soluble plus cyanide soluble copper greater than total copper. These amounted to three

blocks in the manto and 17 blocks in the veins. The soluble copper grades were factored to equal

total copper. Residual copper was then calculated as total copper – acid soluble copper –

cyanide soluble copper for all blocks.

14.2.1.5 Oxide versus Sulfide Dominant

Upon completion of the grade estimation, the blocks were segregated into oxide dominant and

sulfide dominant domains based on the soluble copper block grades. Blocks with acid soluble

copper greater than cyanide soluble copper are deemed to be oxide dominant and blocks with

cyanide soluble copper greater than or equal to acid soluble copper are deemed sulfide dominant.

The variable “oxslf” in the block model is set to 1 for oxide dominant and 2 for sulfide dominant.

About 20% of the blocks in the manto are oxide dominant and 80% are sulfide dominant. For

the veins, about 4% of the blocks are oxide dominant and 96% are sulfide dominant.




March 29, 2018


Figure 14-12. Don Gabriel Manto Variogram – Along Strike



March 29, 2018


Figure 14-13. Total Copper Grades for Don Gabriel Manto on Section 10, IMC 2017




March 29, 2018


14.2.1.6 Resource Classification

Don Gabriel Manto

For the purpose of classifying the mineral resources of the Don Gabriel Manto, an additional

block estimate was done. It was based on search radii of 60m along strike, 60m down dip and

25m in the tertiary direction. The estimate was also based on a maximum of four composites, a

minimum of four, and a maximum of one composite per hole. This estimate provides the

average distance to the nearest four holes to each block and was put into the block model. Figure

14-14 shows the probability plot of the average distances. Blocks with an average distance less

than or equal to 20m were assigned as measured mineral resource. These blocks amount to

about 14.3% of the blocks. Blocks with an average distance between 20 and 45m were assigned

as indicated mineral resource. These blocks amount to about 81.0% of the blocks. Blocks with

an average distance to four holes greater than 45m were assigned to inferred mineral resource

and were about 4.7% of the blocks. Figure 14-15 shows the resource classification on a cross

section.

Don Gabriel Veins

For the purpose of classifying the mineral resources of the Don Gabriel veins, an additional

block estimate was done. It was based on the search radii of 75m along strike, 75m down dip

and 30m in the tertiary direction, the same as the grade estimates. The estimate was also based

on a maximum of two composites, a minimum of two, and a maximum of one composite per

hole. This estimate provides the average distance to the nearest two holes to each block and was

put into the block model. Blocks with an average distance less than or equal to 60m were

assigned as inferred mineral resource. These blocks amount to about 62% of the blocks. Blocks

with an average distance to two holes greater than 60m, the remaining 38% of the blocks, are

assumed to be additional mineral inventory. Some official reporting guides use the category

“Exploration Target” to describe this mineralization.

There are a couple important guidelines in the various reporting codes concerning inferred

mineral resource:

It is expected that the majority, i.e. at least 50%, of inferred mineral resources could be

upgraded to indicated mineral resources with continued exploration, and

Extrapolation of mineral resources to distances greater than the nominal drill grid spacing

is strongly discouraged.

For this analysis, IMC is assuming an average distance of less than 60m to the nearest two holes

defines a reasonable maximum limit of extrapolation of the data. Significant drilling is required

to upgrade the Don Gabriel Veins to measured and indicated mineral resources, but it appears to

be a significant opportunity for the project.



March 29, 2018


Figure 14-14. Probability Plot of Average Distance to Nearest 4 Holes – Don Gabriel Manto



March 29, 2018


Figure 14-15. Resource Classification for Don Gabriel Manto on Section 10, IMC 2017




March 29, 2018


14.2.1.7 Bulk Density

The Don Gabriel drillhole database includes 4368 specific gravity determinations on short pieces

of core. The estimates were done by sealing the core in paraffin, weighing the sample in air and

submerged in water. The original specific gravity measurements were received by IMC and

included the weight as received at the lab, the dry weight, the weight with paraffin, and the

submerged weight. IMC checked the calculations to verify that the final result was a dry specific

gravity adjusted for the volume and weight of paraffin. IMC also verified the values were

correctly loaded in the database. IMC back-loaded the model rock type onto this database to

calculate the specific gravity by model rock types. Values greater than 5 and values less than 1.5

were excluded.

Table 14-7. Specific Gravity and Bulk Density for Don Gabriel UnitsIMC No. of Average Bulk Bulk Density

Code Description Samples Sp. Grav. Factor (t/m3)

10 Upper Sill 62 2.819 98.0% 2.763

20 Sandstone 263 2.781 98.0% 2.725

30 Intrusion 176 2.801 98.0% 2.745

50 Don Gabriel Manto 1488 2.711 97.0% 2.630

60 Don Gabriel Veins 459 2.710 98.0% 2.656

70 Host Rock 1878 2.733 98.0% 2.678

90 Fill 2.00

The average specific gravity was reduced 2% for all rock types, except the Don Gabriel Manto,

to obtain an estimate of bulk density. This is to allow for voids in the rock mass at a larger scale

than what could be captured in the small core samples. A 3% reduction was used for the Don

Gabriel Manto; by nature it includes numerous small scale vugs.

14.2.1.8 Topography

Topography in the Don Gabriel model is as of January 1, 2018. There is current mining activity

at Don Gabriel. The topography was assembled from several source maps. IMC used the

various sources to construct as accurate topography as possible. Fill blocks, where current

topography is higher than pre-mine topo (or other available mine topographies), were added to

the model as rock code 90.

14.2.1.9 Vein Resources by Individual Vein

Table 14-8 presents the mineral resource for the Don Gabriel veins by individual vein at a total

copper cutoff of 0.64%. All the resource is classified as inferred mineral resource. The table

also shows the number of drillholes that intersect each vein. The inferred mineral resource

amounts to 2,020 ktonnes at 1.331% total copper for 59.3 million pounds of contained copper.

This is the largest inferred mineral resource for any of the Don Gabriel or Papomono mineral

deposits.




March 29, 2018


Table 14-8. Mineral Resource for Don Gabriel Veins-0.64% CuT Inferred Mineral Resource Additional Mineral Inventory

No. of CuT CuS CuCn CuR Copper

Vein Holes Ktonnes % % % % (mlbs)

V1 3 56 0.873 0.366 0.454 0.053 1.1

V2 3 0 0.000 0.000 0.000 0.000 0.0

V3 4 187 1.631 0.489 0.965 0.177 6.7

V4 6 54 0.950 0.076 0.738 0.136 1.1

V5 2 13 1.877 0.116 1.663 0.099 0.5

V6 2 39 1.549 0.102 1.376 0.071 1.3

V7 4 177 1.410 0.093 1.203 0.114 5.5

V8 5 164 1.157 0.079 1.020 0.058 4.2

V9 4 8 0.663 0.061 0.235 0.367 0.1

V10 2 0 0.000 0.000 0.000 0.000 0.0

V11 1 0 0.000 0.000 0.000 0.000 0.0

V12 8 94 1.238 0.084 1.115 0.038 2.6

V13 5 138 1.196 0.080 0.917 0.199 3.6

V14 8 116 1.303 0.076 1.147 0.081 3.3

V15 10 380 1.838 0.111 1.527 0.200 15.4

V16 2 0 0.000 0.000 0.000 0.000 0.0

V17 7 27 0.738 0.092 0.463 0.183 0.4

V18 6 307 0.986 0.080 0.731 0.175 6.7

V19 3 73 1.340 0.130 0.974 0.236 2.2

V20 6 160 1.128 0.087 0.850 0.190 4.0

V21 4 23 0.774 0.158 0.528 0.087 0.4

V22 3 3 0.880 0.154 0.678 0.049 0.1

TOTAL 36 2,020 1.331 0.137 1.043 0.151 59.3





March 29, 2018


14.2.2 Papomono

14.2.2.1 General

The resource block model was developed by IMC during December 2017 through February

2018, with completion of the final deposit about February 9, 2018. The model is based on 5m by

5m by 5m blocks and includes all the Papomono deposits in the same model. The model is

rotated 40.4o counterclockwise to align with the strike of several of the deposits.

14.2.2.2 Geologic Controls

Recall that Figure 10-4 shows the various Papomono area mineral deposits and the location of

the drillholes.

The rock types included in the Papomono block model are as follows:

Table 14-9. Papomono Rock Types

Rock Code Unit Description

100 Dio Diorite

110 Grn Granodiorite

210 C Unit C

220 B Unit B

230 A Unit A

Units A, B, and C are various volcanic flows. MTV personnel provided solids for the geologic

units and they were incorporated into the model in the variable “rock”.

The main control for grade estimation in each zone is a grade shell designed at a 0.2% total

copper cutoff grade. Below this threshold the AA total copper and soluble copper assays were

not done. An initial design for each of the shells was provided by MTV personnel. IMC

developed an updated interpretation for most of the deposits using the Leap Frog implicit

modelling software. IMC’s interpretation was also based on a 0.2% copper grade cutoff and

used the MTV interpretation to guide the updated designs. Massivo was interpreted as two

solids, one relatively steep, paralleling the Papomono fault zone, and also a flatter dipping solid

to model the manto style mineralization. PPM South was also interpreted as two solids, one east

of the Papomono Fault Zone and one west of the fault. For Cumbre, PPM North, and Mantos

North IMC reviewed and accepted the MTV interpretation of the grade shells.

It is noted that the interpretation for all the grade shells are based on individual assays and should

be considered an in-situ representation of mineralization; minimal mining dilution is

incorporated into the grade solids for the model.




March 29, 2018


The grade shells for the various Papomono deposits are defined as follows:

Table 14-10. IMC Grade Shells

IMC Code Description

10 Massivo Steep Zone

15 Massivo Flat Zone

20 Cumbre

30 Mantos Connection

40 Papomono South – East

45 Papomono South – West

50 Epithermal

60 Papomono North

70 Mantos North

The codes for the grade shells are coded on a partial block basis, i.e. these blocks were coded if

any portion of the solid was included in them.

Figure 14-16 shows a more detailed view of the Massivo deposit drilling and also the location of

Section 30. Figure 14-17 shows the rock types, Papomono fault zone, and grade shell for

Massivo. It can be observed that the grade shell is mostly in Unit A of the volcanic units.

Figures 14-18 and 14-19 show a detailed view of PPM South drilling and also the rock types and

grade shell. This is also hosted mostly in Unit A. Though not shown on the section, the

Papomono fault divides the grade shell into east and west components; this is evident in the

offset visible in Unit B on the figure. These figures are also considered representative of the

Mantos Connection and Mantos North deposits.

Figures 14-20 and 14-21 show detailed views of the Cumbre drilling and the rock types and

grade shell. The deposit is hosted in a diorite intrusion and Unit C of the volcanic flow

sequences. The higher copper grades tend to be in Unit C, and it appears that much of this

higher grade material was extracted in the existing Cumbre pit.




March 29, 2018


Figure 14-16. Massivo Deposit and Drilling, IMC 2018



March 29, 2018


Figure 14-17. Massivo Deposit - Rock Types and Grade Shell on Section 30, IMC 2018




March 29, 2018


Figure 14-18. PPM South Deposit and Drilling, IMC 2018



March 29, 2018


Figure 14-19. PPM South Deposit. Rock Types and Grade Shell on Section 18, IMC 2018




March 29, 2018


Figure 14-20. Cumbre Deposit and Drilling, IMC 2018




March 29, 2018


Figure 14-21. Cumbre Deposit. Rock Types and Grade Shell on Section 34, IMC 2018




March 29, 2018


14.2.2.3 Cap Grades and Compositing

IMC reviewed the distribution of assays in the grade shells by deposit and applied caps as shown

in Table 14-11. These generally corresponded to breaks in the grade distribution as evident in

probability plots. Figures 14-22 and 14-23 show examples for Massivo and PPM South

respectively.

Table 14-11. Cap Grades for Papomono Deposits - Assays

Deposit

Cap Grade

(%CuT)

Approximate

Percentile

Number Capped

Average Grade

(%CuT)

Massivo 13.5% 99.5% 16 15.9%

Cumbre 5.9% 99.5% 11 7.94%

Connection 6.5% 98.5% 16 10.7%

PPM South 6.5% 98.5% 20 8.19%

Epithermal 3.5% 98.7% 6 5.19%

PPM North 6.5% 98.5% 9 8.90%

Mantos North 10.0% 99.0% 44 14.3%

For sample intervals with capped total copper assays, IMC reduced the soluble copper assays by

the same proportion that the total copper assays were reduced. For example, for a 15% copper

assay in Massivo capped at 13.5% total copper all the soluble copper assays were also factored

by 13.5/15 or 0.90.

The assay database was then composited to 5m composites, respecting the grade shell contacts,

i.e. only assays in the grade shells were composited. Single assays down to 1m in length were

allowed to form a composite in narrow zones. Epithermal was composited to 2.5m composited

due to the narrow nature of the veins.

Tables 14-12 and 14-13 show the summary statistics for assays and composites respectively.

They show: 1) all assays/composites in the grade shell, 2) uncapped values greater than 0.2%

copper, 3) capped values, and 4) capped values greater than 0.2% copper.

The rightmost column of Tables 14-12 and 14-13 show the percentage of the assays or

composites in the grade shells that exceed the 0.2% copper design cutoff. This is a measure that

indicates the efficiency of the shells. The percentage of composites above 0.2% in the grade

shells exceeds 80% for all deposits, except Mantos North. This is a good result for the designs.

The Mantos North solid could be improved some with additional interpretation, though much of

Mantos North has been exploited by Vale. The percentage of assays in the grade shells above

0.2% copper range from 57.1% in Mantos North to 87.2% in PPM North. These are relatively

good results.



March 29, 2018


Table 14-12. Summary Statistics of Assays in Grade ShellsAll Samples Samples > 0.2% CuT

No. of Mean Std Dev Min Max No. of Mean Std Dev Min Max Percent

Assays/Not Capped Samples (%CuT) (%CuT) (%CuT) (%CuT) Samples (%CuT) (%CuT) (%CuT) (%CuT) > 0.2% CuT

Massivo 3,573 1.691 2.547 0.000 19.60 2,894 2.066 2.695 0.200 19.60 81.0%

Cumbre 2,140 0.551 0.843 0.001 9.86 1,409 0.783 0.958 0.200 9.86 65.8%

Mantos Connection 1,108 0.852 1.589 0.000 19.77 810 1.136 1.776 0.200 19.77 73.1%

PPM South 1,303 1.013 1.422 0.000 11.98 1,010 1.284 1.510 0.201 11.98 77.5%

Epithermal 485 0.726 0.856 0.006 8.10 385 0.888 0.891 0.200 8.10 79.4%

PPM North 508 1.140 1.602 0.000 13.30 443 1.291 1.663 0.200 13.30 87.2%

Mantos North 4,334 0.829 1.894 0.000 25.10 2,475 1.384 2.359 0.200 25.10 57.1%

All 13,451 1.041 1.921 0.000 25.10 9,426 1.447 2.171 0.200 25.10 70.1%


Assays/Capped Samples (%CuT) (%CuT) (%CuT) (%CuT) Samples (%CuT) (%CuT) (%CuT) (%CuT) > 0.2% CuT

Massivo 3,573 1.680 2.488 0.000 13.50 2,894 2.053 2.629 0.200 13.50 81.0%

Cumbre 2,140 0.540 0.756 0.001 5.90 1,409 0.767 0.846 0.200 5.90 65.8%

Mantos Connection 1,108 0.792 1.180 0.000 6.50 810 1.054 1.283 0.200 6.50 73.1%

PPM South 1,303 0.987 1.290 0.000 6.50 1,010 1.250 1.355 0.201 6.50 77.5%

Epithermal 485 0.705 0.741 0.006 3.50 385 0.862 0.755 0.200 3.50 79.4%

PPM North 508 1.098 1.395 0.000 6.50 443 1.243 1.438 0.200 6.50 87.2%

Mantos North 4,334 0.785 1.570 0.000 10.00 2,475 1.307 1.917 0.200 10.00 57.1%

All 13,451 1.013 1.754 0.000 13.50 9,426 1.406 1.967 0.200 13.50 70.1%



March 29, 2018


Table 14-13. Summary Statistics of Composites in Grade Shells

All Samples Samples > 0.2% CuT


Composites/Not Capped Samples (%CuT) (%CuT) (%CuT) (%CuT) Samples (%CuT) (%CuT) (%CuT) (%CuT) > 0.2% CuT

Massivo 764 1.655 1.909 0.011 12.83 731 1.723 1.924 0.201 12.83 95.7%

Cumbre 404 0.544 0.599 0.011 6.71 323 0.647 0.629 0.203 6.71 80.0%

Mantos Connection 293 0.789 1.051 0.001 8.71 236 0.953 1.110 0.200 8.71 80.5%

PPM South 326 0.944 0.891 0.000 5.61 291 1.047 0.889 0.204 5.61 89.3%

Epithermal 193 0.703 0.700 0.024 4.97 168 0.789 0.710 0.202 4.97 87.0%

PPM North 107 1.084 1.042 0.010 5.28 101 1.143 1.043 0.209 5.28 94.4%

Mantos North 853 0.763 1.307 0.000 15.20 633 0.987 1.452 0.200 15.20 74.2%

All 2,940 0.995 1.399 0.000 15.20 2,483 1.156 1.465 0.200 15.20 84.5%


Composites/Capped Samples (%CuT) (%CuT) (%CuT) (%CuT) Samples (%CuT) (%CuT) (%CuT) (%CuT) > 0.2% CuT

Massivo 764 1.645 1.871 0.011 11.40 731 1.712 1.886 0.201 11.40 95.7%

Cumbre 404 0.533 0.523 0.011 4.86 323 0.634 0.540 0.203 4.86 80.0%

Mantos Connection 293 0.741 0.852 0.001 4.84 236 0.893 0.883 0.200 4.84 80.5%

PPM South 326 0.921 0.822 0.000 4.95 291 1.021 0.883 0.204 4.95 89.3%

Epithermal 193 0.683 0.619 0.024 3.05 168 0.767 0.621 0.202 3.05 87.0%

PPM North 107 1.050 0.985 0.010 5.28 101 1.106 0.984 0.209 5.28 94.4%

Mantos North 853 0.726 1.078 0.000 8.76 633 0.936 1.180 0.200 8.76 74.2%

All 2,940 0.970 1.301 0.000 11.40 2,483 1.127 1.357 0.200 11.40 84.5%




March 29, 2018


Figure 14-22. Probability Plot of Assays in Massivo Grade Shell – Total Copper

Figure 14-23. Probability Plot of Assays in PPM South Grade Shell – Total Copper




March 29, 2018


14.2.2.4 Adjustments for Soluble Copper

As previously discussed, soluble copper assays were generally not done when total copper was

less than 0.2% and a considerable number of assays in the grade shells are lower than this

threshold. This truncation of the lower end of the distribution could result in a distortion in the

soluble copper block grade estimates, unless corrected.

As was done for Don Gabriel, assays were classified as oxide dominant mineralization, acid

soluble copper > cyanide soluble copper, or sulfide dominant mineralization, acid soluble copper

< cyanide soluble copper. Note that the cyanide soluble assay follows the acid soluble assay, so

it only measures mineral that is not acid soluble in character; chalcocite or bornite would be the

most common copper minerals species. Figures 14-24 and 14-25 show oxide and sulfide

dominant assays for Massivo and PPM South respectively as examples.

IMC filled in the missing soluble copper assays as follows. First, the ratio of acid soluble copper

to total copper and the ratio of cyanide soluble copper to total copper were calculated for oxide

dominant assays and sulfide dominant assays for each deposit. These values are shown in Table

14-14. These were calculated as the ratio of the means, i.e. average of the soluble copper assays

divided by the average of the total copper assays (as opposed to calculating a ratio for each assay

and calculating the mean of the ratios). Second, samples without soluble copper assays were

assigned as either oxide dominant or sulfide dominant based on nearby samples that were

assayed. Third the missing intervals were assigned soluble copper grades based on the total

copper grade and the calculated ratios. For Massivo, oxide dominant material the acid soluble

copper was set to 0.752 x total copper and the cyanide soluble copper was set to 0.163 x total

copper. For sulfide dominant material the soluble copper was set to 0.117 x total copper and the

cyanide soluble copper was set to 0.821 x total copper. The ratios shown on the table are

reasonable for what they are used for, assigning approximate grades for missing soluble copper

assays for the low grade data.

These adjustments were applied to the assays prior to compositing.

Table 14-14. Ratio of Soluble Copper to Total Copper by Oxide versus Sulfide Dominant

Deposit

Oxide Dominant Sulfide Dominant

CuS/CuT CuCn/CuT CuS/CuT CuCn/CuT

Massivo 0.752 0.163 0.117 0.821

Cumbre 0.715 0.142 0.109 0.817

Connection 0.763 0.114 0.105 0.649

PPM South 0.752 0.143 0.109 0.810

Epithermal 0.792 0.055 0.078 0.448

PPM North 0.740 0.103 0.244 0.704

Mantos North 0.759 0.171 0.210 0.732




March 29, 2018


Figure 14-24. Oxide Versus Sulfide Dominant Assays in Massivo




March 29, 2018


Figure 14-25. Oxide Versus Sulfide Dominant Assays in PPM South




March 29, 2018


14.2.2.5 Variogram Analysis

Massivo

IMC conducted a variogram analysis of the 5m composites in Massivo. The deposit strikes

N40oW. What IMC has termed the “steep” mineralization dips about 67

o to the southwest. The

flatter mineralization dips about 22o to the southwest. Figures 14-26 and 14-27 present

variograms in the strike and dip direction for the steep mineralization. The range is slightly

longer along strike than down dip. These are pairwise relative variograms. This method has

some data smoothing built into the calculations. For pairwise relative variograms the sill should

theoretically tend to the variance divided by the mean squared of the data and is dimensionless.

This would be about 1.22 for this data. The fit sill of 0.71 is lower than this value.

Composites in the flatter portion of the deposit only amounted to about 247; variograms in the

flat domains were of relatively poor clarity due to this.

Connection and PPM South

Composites for both Mantos Connection and PPM South were used in the variogram analysis

because they have similar geology and orientation of mineralization. They are also similar to the

Mantos North deposit. This also allows significantly more data for the analysis. The deposit

strikes approximately N40oW and dips about 14

o to the southwest. Figures 14-28 and 14-29

present variograms in the strike and dip direction respectively. The variograms down dip has

better clarity than the one along strike. Again, these are pairwise relative variograms.

Other Deposits

The amount of data available for Epithermal and PPM North was not sufficient for the

calculation of reliable variograms. IMC relied on the fact that the orientation of the

mineralization is evident for grade estimation. Reasonable variograms were obtained for

Cumbre, but they were not consistent with geologic understanding of the deposit and were not

used. The estimation for Cumbre was guided by the orientation of known structures such as the

Katerina Fault.




March 29, 2018


Figure 14-26. Massivo Copper Variogram – Steep Zone – Along Strike




March 29, 2018


Figure 14-27. Massivo Copper Variogram – Steep Zone – Down Dip




March 29, 2018


Figure 14-28. PPM South/Connection Copper Variogram – Along Strike




March 29, 2018


Figure 14-29. PPM South/Connection Copper Variogram – Down Dip




March 29, 2018


14.2.2.6 Grade Estimates

IMC estimated block grades for total copper, acid soluble copper, and cyanide soluble copper

using inverse distance with a power weight of 2 (ID2). Table 14-15 shows the orientation of the

search ellipse and the search radii along the major, minor, and tertiary axes respectively. Search

radii were generally 65m in the major and minor axes directions. The search radii for Massivo,

Mantos North and PPM North were shorter than 65m. Due to relatively high data densities in

these deposits the shorter searches are adequate to fill in all the block grades. Epithermal had

longer search radii at 75m, but not all the blocks were classified as potential mineral resource.

A maximum of eight composites, a minimum of two composites, and also a maximum of two

composites per hole were used for the estimations, except Epithermal which has a maximum of

12 composites, a minimum of three composites, and a maximum of three composites per hole.

Epithermal was also estimated with 2.5m composites, instead of the 5m composites used for the

other deposits.

The effect of inverse distance weighting along with a relatively low number of composites

should produce relatively unsmoothed estimates of block grades based on the composites, i.e. the

estimates should not be overly smeared.

For Cumbre, it can also be seen on the table that the diorite versus the volcanic rocks were also

treated as separate populations.

After the grade estimates were done, a check was made for blocks with acid soluble plus cyanide

soluble copper greater than total copper. These tended to be only a few blocks per deposit. For

these blocks, the soluble copper grades were factored to equal total copper. Residual copper was

then calculated as total copper – acid soluble copper – cyanide soluble copper for all blocks.

Figures 14-30 and 14-31 show cross sections of total copper grades for Massivo and PPM South.

14.2.2.7 Resource Classification

For the purpose of classifying the mineral resources, two additional block estimates were done.

The first estimate was based on a maximum of four composites, a minimum of four, and a

maximum of one composite per hole. The second estimate was based on a maximum of three

composites, a minimum of three, and a maximum of one composite per hole. The estimates

provide the average distance to the nearest three and four holes to each block and were put into

the block model. Figures 14-32 and 14-33 show probability plots of the average distances for

Massivo and PPM South respectively. Blocks with an average distance to four holes less than or

equal to 22.5m were assigned as measured mineral resource. Blocks with an average distance

to the nearest three holes less than 45m, but greater than 22.5m from the nearest four holes, were

assigned as indicated mineral resource. Blocks with an average distance to three holes greater

than 45m were assigned to inferred mineral resource. For Epithermal there were some blocks

where the average distance to the nearest two holes exceeded 60m; these blocks were not

included in the mineral resource estimate. Figure 14-34 and 14-35 shows the resource

classification on cross sections for Massivo and PPM South.



March 29, 2018


Table 14-15. Grade Estimation Parameters for Copper Rotation Angles (Note 1)

Domain Allowable Theta Phi Psi Search Radii (M) No. of Composites Cap ID

Code Domain Domains (Azimuth) (Dip) Major Minor Tertiary Max Min Max/Hole (%CuT) Power Comments

10 Massivo Steep 10,15 320 0 -67 55 45 20 8 2 2 13.5 2

15 Massivo Flat 10,15 320 0 -22 55 45 20 8 2 2 13.5 2

20 Cumbre Diorite 20-Diorite 22 0 -90 65 65 40 8 2 2 5.9 2

20 Cumbre Volcancis 20-Volcancis 45 0 -90 65 65 40 8 2 2 5.9 2

30 Mantos Connection 30 320 0 -14 65 65 20 8 2 2 6.5 2

40 PPM South - East 40 320 0 -14 65 65 20 8 2 2 6.5 2

45 PPM South - West 45 320 0 -14 65 65 20 8 2 2 6.5 2

50 Epithermal 50 320 0 -90 75 75 25 12 3 3 3.5 2 2.5m composites

60 PPM North 60 340 25 50 40 40 20 8 2 2 6.5 2

70 Mantos North 70 320 0 -15 50 50 20 8 2 2 10 2

Note 1 GSLIB convention for angles

theta - rotation of y (north) axis clockwise to principal direction in horizontal plane

phi - dip of principal axis, negative is down

psi - rotation around principal axis, clockwise is negative.



March 29, 2018


Figure 14-30. Total Copper on Massivo Cross Section 30, IMC 2018



March 29, 2018


Figure 14-31. Total Copper on PPM South Cross Section 18, IMC 2018



March 29, 2018


Figure 14-32. Probability Plot of Average Distance to Nearest 3 and 4 Holes - Massivo



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Figure 14-33. Probability Plot of Average Distance to Nearest 3 and 4 Holes – PPM South



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Figure 14-34. Resource Classification on Massivo Section 36, IMC 2018



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Figure 14-35. Resource Classification on PPM South Section 18, IMC 2018




March 29, 2018


14.2.2.8 Oxide versus Sulfide

Upon completion of the grade estimation, the blocks were segregated into oxide dominant and

sulfide dominant domains based on the soluble copper block grades. Blocks with acid soluble

copper greater than cyanide soluble copper are deemed to be oxide dominant and blocks with

cyanide soluble copper greater than or equal to acid soluble copper are deemed sulfide dominant.

Figure 14-36 and 14-37 show example cross sections for the Massivo and Mantos Connection

respectively.

14.2.2.9 Bulk Density

The Papomono drillhole database includes 2,148 specific gravity determinations on short pieces

of core. The estimates were done by sealing the core in paraffin, weighing the sample in air and

submerged in water. The upper portion of Table 14-16 shows the number of samples and

average specific gravity for each of the major rock type units. The lower portion of the table

shows the results for the measurements by deposit, i.e. samples inside the grade shell solids for

each deposit. Values greater than 3.1 and values less than 1.5 were excluded from the

calculations. The average specific gravity was reduced 2% for to obtain an estimate of bulk

density. This is to allow for voids in the rock mass at a larger scale than what could be captured

in the small core samples.

There were about 145 measurements for samples in the Massivo grade shell. The measurements

average about 2.623 for the steep zone and 2.671 for the flat zone. IMC estimated the specific

gravity values on a block by block basis for Massivo and used background values for blocks that

were not estimated. The specific gravity estimates for PPM North were also done on a block by

block basis. For Cumbre, Mantos Connection, and Epithermal, the averages shown on the table

were assigned to all blocks in the grade shell; it was the opinion of IMC there was not enough

data to assign these on a block by block basis. There were no samples for PPM South. The

Mantos Connection values were used; the geology is similar in the two zones.

Table 14-16. Specific Gravity and Bulk Density for Papomono UnitsRock Grade No. of Average Bulk Bulk Density

Code Shell Description Samples Sp. Grav. Factor (t/m3)

100 Diorite 18 2.882 98.0% 2.824

210 Unit C 622 2.741 98.0% 2.686

220 Unit B 113 2.768 98.0% 2.713

230 Unit A 1364 2.649 98.0% 2.596

10 Massivo Vertical 87 2.623 98.0% 2.571

15 Massivo Horizontal 58 2.671 98.0% 2.618

20 Cumbre 42 2.609 98.0% 2.557

30 Connection 46 2.595 98.0% 2.543

40,45 PPM South 2.595 98.0% 2.543

50 Epithermal 20 2.357 98.0% 2.310

60 PPM North 135 2.567 98.0% 2.516

70 Manto North 250 2.641 98.0% 2.588



March 29, 2018


Figure 14-36. Oxide versus Sulfide Dominant Blocks for Massivo Section 36, IMC 2018



March 29, 2018


Figure 14-37. Oxide versus Sulfide Dominant Blocks for Mantos Connection Section 36, IMC 2018




March 29, 2018


14.2.2.10 Historic Mining

During the Vale tenure there was significant open pit mining in the Cumbre pit. IMC was

provided with topography to show the current status of Cumbre.

Also, there was significant underground mining in Mantos North, as well as additional

underground development to explore and prepare for development of Massivo, Connection, and

PPM South. IMC was provided with solids to represent historic Vale underground mine

development and mining and also MTV 2017 mining. These were incorporated into model to

show the percentage of the blocks extracted by underground development and mining.

There was also some open pit mining activity in PPM North during 2016. IMC received a

topography update for this and it is incorporated into the model. Based on the current IMC

model, IMC would estimate this as about 67,000 tonnes at 1.391% total copper. In terms of

tonnes this is about 13.5% of the current grade shell. Also, one of the existing main declines into

the Papomono underground is established in the wall of this small pit.




March 29, 2018


15.0 Mineral Reserves Estimates

Table 15-1 presents the mineral reserve for the Don Gabriel Manto only. The proven and

probable mineral reserve amounts to 5.2 million tonnes at 0.814% total copper for 92.7 million

contained copper pounds. Recoverable copper is estimated at 80.5 million pounds based on an

average recovery of 86.9%. The effective date of this mineral reserve estimate is January 1,

2018.

Table 15-1. Don Gabriel Mineral Reserve

Cont. Payable

CuT CuS CuCn CuR Copper Copper

Ktonnes (%) (%) (%) (%) (klbs) (klbs)

Mineral Reserve

Proven Mineral Reserve 898 0.800 0.127 0.572 0.100 15,827 13,749

Probable Mineral Reserve 4,270 0.817 0.110 0.615 0.092 76,871 66,782

Prov/Prob Mineral Reserve 5,168 0.814 0.113 0.607 0.094 92,698 80,531

The mineral reserve is based on an open pit mine plan and mine production schedule developed

by IMC at a cutoff grade of 0.25% total copper. Table 16-1, in the next section, shows the

parameters used for these cutoff grade calculations. The mineral reserve is based on a copper

price of US$ 2.75 per pound. Measured mineral resource in the mine production schedule was

converted to proven mineral reserve, and indicated mineral resource was converted to probable

mineral reserve. Ore loss and dilution assumptions are also incorporated into the estimate. This

is also discussed in Section 16.1.1.

The mineral reserves are classified in accordance with the Canadian Institute of Mining,





Company's reasonable expectation that all necessary permits and approvals will be obtained and

maintained.

IMC does not believe that there are significant risks to the mineral reserve estimate based on





forecast, or costs higher than the current estimates. The Don Gabriel Manto mineral reserve also

assumes a positive preliminary feasibility study and production decision for the Papomono

Massivo deposit. Some of the key economic parameters depend on higher production rates than

the Don Gabriel pit will provide by itself.




March 29, 2018


16.0 Mining Methods

16.1 Don Gabriel

16.1.1 Dilution and Ore Loss

The manto interpretation was based on 1m assays and was incorporated into the resource model

to partial blocks. This means only minimal dilution and ore loss are incorporated into the block

model. For mine planning and mineral reserve estimation a diluted model was constructed.

Blocks with less than 30% manto solid contained in them were excluded as lost ore. Blocks with

between 30% and 99.9% manto solid contained in them were diluted to full blocks with a

dilution grade of 0.1% total copper. Compared to the undiluted model, this calculation resulted

in 4.2% more tonnes at a 6.4% lower copper grade. IMC considers this a reasonable estimate of

dilution effects.

16.1.2 Slope Angles

The slope angle design for the Don Gabriel pit is based on two reports by E-Mining. The first is

“Informe Extendido – Estimacion de Parametros de Diseno y Analisis de Estabilidad Rajo Don

Gabriel” dated May 2011, and the second is an addendum dated April 2012. The two reports

specified the same design. The interramp slope angle was specified as 52o. Furthermore, it was

specified that the height of continuous slope could not exceed 150m without the inclusion of an

additional 20m catch bench. This would limit the overall angle to about 50o. It is also noted that

the E-Mining analyses looked at possible large scale slope failures (low probability) and bench

scale failures. The bench scale issues, maintenance of catch benches and retention of most

failures on the catch benches, are the main considerations for the interramp slope angle

recommendations.

16.1.3 Economic Parameters

Table 16-1 shows the economic parameters for open pit design for the salt leach process case.

The base case design price is $2.75 per pound copper. Note that the purpose of the design is to

set final walls, so this is based on long range forecast prices.

The base mining costs for ore and waste are based on contract mining and are estimated at $2.15

and $1.95 per tonne respectively. IMC estimated mine engineering, geology, and ore control at

an additional $0.20 per total tonne based on labor rates for supervisory personnel provided by

MTV. The mining costs are the same as was used for the mineral resource estimate.

The process cost is estimated at $9.73 per ore tonne for Don Gabriel. This is slightly higher

than the $8.83 average cost used for mineral resources. In particular, Don Gabriel will benefit

from finer crushing than will be required for the other deposits. The haulage distance from Don

Gabriel to the crusher is about 12km and is not included in the ore mining cost discussed above.

The $2.21 estimate for ore haulage is based on a contractor quote, and is the same as the cost

used for the mineral resource estimate.




March 29, 2018


General and Administrative cost (G&A) will be prorated over several Don Gabriel and

Papomono mineral deposits based on potential copper production. The Don Gabriel portion is

estimated at about $3.09 per ore tonne. This was assumed at $0.24 per pound finished copper for

the mineral resource estimate.

The estimated recoverable copper grade is incorporated into the block model on a block by block

based on the acid soluble, cyanide soluble, and residual copper grades for the block and the

parameters shown in Table 13-29. The average recovery is anticipated at 87% for the salt leach

process, based on these recovery parameters.

The SX/EW plus cathode transport is estimated at $0.19 per pound finished copper.

Table 16-1. Don Gabriel Economic Parameters for Pit Design 1/29/2018

Units Salt Lch Waste

Commodity Prices

Copper Price per Pound (US$) 2.75

Mining Cost per Tonne

Contract Mining Cost (US$) 2.15 1.95

Engineering, Geology, Ore Control (US$) 0.20 0.20

Total Mining Cost (US$) 2.35 2.15

Processing Cost per Ore Tonne

Crushing, Agglomerating, and Leaching (US$) 9.73

Ore Haulage (US$) 2.21

Total Ore Haulage and Process Cost (US$) 11.94

G&A per Ore Tonne

G&A (US$) 3.09

Average Recovery

Total Copper (%) 87.0%

SX/EW and Cathode Transport per Pound

SX/EW Cost (US$) 0.19

Cutoff Grades (Total Copper)

Internal (%) 0.31

Breakeven (%) 0.35

Low Grade (Does Not Pay G&A Cost) (%) 0.25

Based on average recovery the internal total copper cutoff grade is estimated at 0.31% total

copper. Internal cutoff grade applies to blocks that have to be removed from the pit, so only the

mining costs in addition to the $2.15 waste mining cost are included in the calculation. The

breakeven cutoff of 0.35% total copper considers the entire $2.35 per tonne mining cost. The

marginal cutoff grade of 0.25% total copper excludes the G&A cost from the cutoff grade

calculation. This cutoff grade is appropriate if the plant is not operating at full capacity, i.e.

blocks above this grade do not pay full G&A cost, but contribute to it.




March 29, 2018


16.1.4 Mining Phases

The Don Gabriel phase designs are based on analysis performed by Tetra Tech and summarized

in the PowerPoint presentation “Optimizacion y Diseno – Rajo Don Gabriel Minera Tres

Valles”, dated December 22, 2017. IMC also ran independent analyses to verify the final pit

design.

The Tetra Tech analysis proposed dividing Don Gabriel into five mining phases. Figure 16-1

shows the relative locations of the phases. It is noted that the designs are conceptual in nature; in

particular access roads were not included. IMC updated the designs to make the phases

operational. It is assumed that most of the Don Gabriel ore and waste will exit the pit on contour

since the pit is cut into a hill, so internal roads are expected to be less than in more typical open

pits.

The final mining phases are a combination of MTV, Tetra Tech, and IMC designs. There are six

phases though they are numbered 2 through 7.

Phases 2 and 3 are MTV designs for short term planning in the north part of Don Gabriel.

These phases replace the Tetra Tech phase 1. The MTV phase 1 has been completed.

Phases 4, 5, 6, and 7 are the IMC/Tetra Tech phases 2, 3, 4, and 5.

Table 16-2 summarizes the results of the mining phases. Only measured and indicated mineral

resources are included in the tabulations. The mining phases amount to 5.17 million tonnes at

0.813% total copper and 0.711% recoverable copper for 92.7 million contained copper pounds

and 81.1 million recoverable copper pounds. The recovery averages about 87.4%. Total

material in the pit is 27.2 million tonnes for a waste ratio of 4.3 to 1. Note that indicated

recovery and payable copper is slightly higher than the mineral reserve in Table 15-1. The

mineral reserve is based on acid leaching for 2018, thus the difference.

The biggest operational challenge is phase 6. First, at about the 1560 bench the phase 6 wall will

catch up to the phase 5 wall. All the material between the 1560 bench and the 1470 flat will

have to exit the pit to the north. This means waste will exit to the north and go around the pit to

get to the south waste storage area. The second issue is the bottom several benches of the phase

are in the narrow wedge between phase 3 and phase 4. Road access into this narrow area is

difficult. It can be seen that two access roads were required.



March 29, 2018


Table 16-2. Summary of Mining Phases - Salt Leach Case

High Grade - 0.31% CuT Low Grade - 0.25% CuT All Resources Cont. Payable

Mining CuT Rec Cu CuT Rec Cu CuT Rec Cu Recov. Copper Copper Waste Total Waste

Phase Tonnes (%) (%) Tonnes (%) (%) Tonnes (%) (%) (%) (klbs) (klbs) Tonnes Tonnes Ratio

Phase 2 30,829 1.068 0.948 0 0.000 0.000 30,829 1.068 0.948 88.8% 726 644 73,395 104,224 2.38

Phase 3 207,673 0.949 0.842 11,820 0.285 0.249 219,493 0.913 0.810 88.7% 4,419 3,920 309,380 528,873 1.41

Phase 4 642,599 0.816 0.710 57,861 0.278 0.237 700,460 0.772 0.671 87.0% 11,915 10,361 2,869,481 3,569,941 4.10

Phase 5 1,171,767 0.837 0.732 59,721 0.280 0.243 1,231,488 0.810 0.708 87.4% 21,991 19,230 6,217,368 7,448,856 5.05

Phase 6 1,046,265 0.752 0.660 72,252 0.282 0.245 1,118,517 0.722 0.633 87.7% 17,795 15,614 4,736,868 5,855,385 4.23

Phase 7 1,792,953 0.895 0.781 73,880 0.280 0.241 1,866,833 0.871 0.760 87.2% 35,833 31,263 7,799,003 9,665,836 4.18

TOTAL 4,892,086 0.844 0.738 275,534 0.280 0.242 5,167,620 0.813 0.711 87.4% 92,678 81,032 22,005,495 27,173,115 4.26



March 29, 2018


Figure 16-1. Location of the Tetra Tech Mining Phases, Tetra Tech 2017



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Figure 16-2. Mining Phase 2, IMC 2018



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Figure 16-7. Mining Phase 7 – Final Pit, IMC 2018




March 29, 2018


16.1.5 Mine Production Schedule

A mine production schedule was developed for the Don Gabriel pit. The schedule incorporates

the following parameters and assumptions:

Topography has been updated to December 31, 2017.

The schedule was developed to incorporate current mining activity and short range plans

in the north part of the pit.

It is assumed the new contractor, with larger equipment, will start operations during April

2018.

The acid leach process case is assumed for 2018; it is assumed the salt leach process will

be in place for 2019 and thereafter.

Only measured and indicated mineral resources are included in the production schedule;

inferred mineral resource is considered waste. This is, however, a negligible amount of

material; Table 14-1 shows Don Gabriel inferred mineral resources as only 79 ktonnes.

The ore production rate for the schedule is 852,000 tonnes per year. This is 2,400 tonnes per day

for 355 days per year. This rate should be achieved during the first quarter of 2019.

Table 16-3 shows the mine production schedule. 2018 is shown by month and the rest of the

schedule is by quarter year periods. During April, May, and June of 2018 total production ramps

up to 550,000 tonnes per month. It can also be seen that total production peaks at 1.7 million

tonnes per quarter (6.8 million tonnes per year) during 2019 to achieve full production for three

of the four quarters of the year. Total production is 1.6 million tonnes per quarter for the first

three quarters of 2020 after which it can be reduced.

Total mineral reserve amounts to 5.17 million tonnes at 0.814% total copper and 0.707%

recoverable copper. This amounts to 92.7 million contained and 80.5 million payable copper

pounds. Average recovery of total copper is 86.9%. Total material mined is 27.1 million tonnes

for a 4.26 to 1 waste ratio. Note that payable copper and the average recovery is slightly lower

than was shown on Table 16-2 for the phases. The schedule has lower recovery during 2018 due

to the assumption of acid leach process.

This schedule is based on a total copper cutoff grade of 0.31% total copper, internal cutoff for

the salt leach case at average recovery. Low grade is material between 0.25% and 0.31% total

copper. Low grade does not pay for full G&A cost allocated to Don Gabriel, but it has to be

mined and if the plant is not running at full capacity it will contribute to fixed costs.




March 29, 2018


Table 16-3. - Mine Production Schedule

Copper Ore Low Grade All Resources Cont. Payable

Mining Cutoff CuT Rec Cu CuT Rec Cu CuT Rec Cu Recov. Copper Copper Waste Total Waste

Period (%) Tonnes (%) (%) Tonnes (%) (%) Tonnes (%) (%) (%) (klbs) (klbs) Tonnes Tonnes Ratio

Jan-18 0.31 18,650 1.083 0.909 18,650 1.083 0.909 83.9% 445 374 81,350 100,000 4.36

Feb-18 0.31 14,291 0.939 0.786 2,630 0.285 0.230 16,921 0.837 0.700 83.5% 312 261 83,079 100,000 4.91

Mar-18 0.31 29,151 0.524 0.434 6,122 0.284 0.230 35,273 0.482 0.399 82.6% 375 310 83,880 119,153 2.38

Apr-18 0.31 30,000 1.052 0.887 2,228 0.293 0.243 32,228 1.000 0.842 84.3% 710 599 167,772 200,000 5.21

May-18 0.31 30,000 1.213 1.020 108 0.263 0.193 30,108 1.210 1.017 84.1% 803 675 319,892 350,000 10.62

Jun-18 0.31 50,000 0.983 0.821 367 0.277 0.211 50,367 0.978 0.817 83.5% 1,086 907 499,632 549,999 9.92

Jul-18 0.31 43,496 0.929 0.781 37 0.277 0.229 43,533 0.928 0.781 84.1% 891 749 506,467 550,000 11.63

Aug-18 0.31 33,639 0.893 0.746 1,168 0.274 0.217 34,807 0.872 0.728 83.5% 669 559 515,193 550,000 14.80

Sep-18 0.31 46,434 0.845 0.684 74 0.258 0.207 46,508 0.844 0.683 80.9% 865 701 503,492 550,000 10.83

Oct-18 0.31 50,000 0.811 0.659 1,073 0.274 0.219 51,073 0.800 0.650 81.2% 900 732 498,927 550,000 9.77

Nov-18 0.31 50,000 0.768 0.619 2,265 0.276 0.220 52,265 0.747 0.602 80.6% 860 693 497,736 550,001 9.52

Dec-18 0.31 50,000 0.728 0.590 2,545 0.276 0.220 52,545 0.706 0.572 81.0% 818 663 497,454 549,999 9.47

Q1 2019 0.31 213,000 0.676 0.590 33,504 0.280 0.241 246,504 0.622 0.543 87.2% 3,381 2,949 1,453,498 1,700,002 5.90

Q2 2019 0.31 213,000 0.755 0.653 27,153 0.277 0.236 240,153 0.701 0.606 86.4% 3,711 3,208 1,459,846 1,699,999 6.08

Q3 2019 0.31 194,671 0.769 0.669 29,233 0.281 0.244 223,904 0.705 0.614 87.0% 3,481 3,028 1,476,097 1,700,001 6.59

Q4 2019 0.31 213,000 0.837 0.733 12,313 0.280 0.242 225,313 0.807 0.706 87.6% 4,006 3,508 1,474,687 1,700,000 6.55

Q1 2020 0.31 213,000 0.869 0.763 1,951 0.284 0.245 214,951 0.864 0.758 87.8% 4,093 3,593 1,385,048 1,599,999 6.44

Q2 2020 0.31 213,000 0.894 0.783 8,802 0.277 0.241 221,802 0.870 0.761 87.6% 4,252 3,724 1,378,199 1,600,001 6.21

Q3 2020 0.31 213,000 0.969 0.847 17,988 0.282 0.245 230,988 0.916 0.800 87.4% 4,662 4,074 1,369,012 1,600,000 5.93

Q4 2020 0.31 213,000 0.738 0.643 10,778 0.280 0.242 223,778 0.716 0.624 87.1% 3,532 3,077 1,259,502 1,483,280 5.63

Q1 2021 0.31 212,999 0.759 0.668 10,128 0.278 0.243 223,127 0.737 0.649 88.0% 3,626 3,191 1,052,106 1,275,233 4.72

Q2 2021 0.31 213,000 0.716 0.631 14,375 0.277 0.243 227,375 0.688 0.606 88.1% 3,450 3,040 617,225 844,600 2.71

Q3 2021 0.31 213,000 0.727 0.638 14,049 0.283 0.247 227,049 0.700 0.614 87.7% 3,501 3,072 599,988 827,037 2.64

Q4 2021 0.31 213,000 0.828 0.721 11,779 0.276 0.234 224,779 0.799 0.695 87.0% 3,960 3,446 448,331 673,110 1.99

Q1 2022 0.31 213,000 0.864 0.755 10,137 0.284 0.243 223,137 0.838 0.732 87.4% 4,121 3,600 336,643 559,780 1.51

Q2 2022 0.31 213,000 0.761 0.668 7,763 0.281 0.241 220,763 0.744 0.653 87.8% 3,622 3,178 572,382 793,145 2.59

Q3 2022 0.31 213,000 0.776 0.670 7,643 0.291 0.253 220,643 0.759 0.656 86.3% 3,693 3,189 576,217 796,860 2.61

Q4 2022 0.31 213,000 0.916 0.797 3,670 0.283 0.244 216,670 0.905 0.788 87.0% 4,324 3,762 366,884 583,554 1.69

Q1 2023 0.31 212,999 1.031 0.903 2,902 0.282 0.246 215,901 1.021 0.894 87.6% 4,859 4,256 392,558 608,459 1.82

Q2 2023 0.31 213,000 1.055 0.918 5,121 0.280 0.240 218,121 1.037 0.902 87.0% 4,986 4,338 417,065 635,186 1.91

Q3 2023 0.31 213,000 0.969 0.845 9,158 0.276 0.235 222,158 0.940 0.820 87.2% 4,606 4,015 367,450 589,608 1.65

Q4 2023 0.31 213,000 0.947 0.829 5,497 0.287 0.246 218,497 0.930 0.814 87.5% 4,482 3,923 251,940 470,437 1.15

Q1 2024 0.31 204,754 0.783 0.680 12,974 0.277 0.240 217,728 0.753 0.654 86.8% 3,614 3,138 495,944 713,672 2.28

TOTAL 4,892,084 0.844 0.733 275,535 0.280 0.241 5,167,619 0.814 0.707 86.9% 92,698 80,531 22,005,496 27,173,115 4.26



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Figure 16-8. End of 2018, IMC 2018



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16.1.6 Waste Storage Facilities

A waste rock storage facility for the Don Gabriel open pit was designed. Based on the mine

production schedule total waste is anticipated to be about 22 million tonnes. It was reported to

IMC that the following parameters were specified in the EIS regarding the facility:

Maximum lift height of 30m

Lifts at 38o angle of repose

Setbacks between lifts to achieve final overall slope of 28o

Figure 16-15 shows the design. Figure 16-16 shows the facility along with an approximate final

pit design. Currently there is a bit of a discontinuity in the topography where two different

topographies were joined.

The filling curve for the facility is as follows:

Table 16-4. Filling Curve for Don Gabriel Waste Storage

From To Cumulative

Elev Elev Ktonnes Ktonnes

1125 1165 833 833

1165 1195 2,104 2,937

1195 1225 3,599 6,536

1225 1255 4,633 11,169

1255 1285 5,487 16,656

1285 1315 6,337 22,993

1315 1345 5,670 28,663

The design has the capacity of about 28.7 million tonnes, more than is currently required. The

facility would only be stacked to the 1285 lift to accommodate the 22 million tonnes of waste.



March 29, 2018


Figure 16-15. Don Gabriel Waste Storage Facility, IMC 2018




March 29, 2018


Figure 16-16. Final Don Gabriel Pit and Waste Storage Facility, IMC 2018




March 29, 2018


16.1.7 Mining Equipment

Contract mining is planned for Don Gabriel. The following is an list of major mining equipment

that IMC would consider typical for this size project.

Two blast hole drills capable of drilling 8.9 to 12.7cm holes (3.5 to 5 inches)

Two shovels/excavators of approximate 4 cubic meter capacity.

12 to 15 trucks of approximate 32 tonne capacity

Two wheel dozers – Caterpillar D9 class

Two motor graders – Caterpillar 14H class

One wheel dozer – Caterpillar 824 class

One backhoe of approximate 1 cubic meter capacity

One water truck of 50,000 liter capacity

There is also the possibility of a mixed fleet size with larger equipment for waste mining.

16.2 Papomono and Don Gabriel Veins

Detailed mine planning work for the Papomono deposits has not yet been conducted. However,

some assumptions about mining methods have been made for the purpose of estimating mineral

resources.

PPM North and Cumbre are amenable to continued open pit mining. There is also a portion of

Cumbre below the resource cone shell that might be amenable to underground mining. It would

need to be a fairly low cost method such as block caving, or maybe sub-level caving.

The geometry of the Massivo deposit is also amenable to bulk mining methods such as block

caving or sub-level caving. Block caving is currently the method of choice for MTV personnel.

The Epithermal Vein and also the Don Gabriel Veins are narrow, steeply dipping structures.

They are amenable to a method such as sub-level stoping.

The relatively flat lying nature of PPM South, Mantos Connection, and North Mantos makes

them amenable to methods such as room and pillar (or post pillar), cut and fill, or front caving.

However, the post pillar and cut and fill methods are relatively expensive. Front caving is a less

expensive method, though it will probably result in higher dilution.




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17.0 Recovery Methods

17.1 Current Process Description

MTV currently produces high grade copper cathodes using a heap-leach and SX-EW process.

Ore is stockpiled above the crusher, and is loaded into a primary jaw crusher, secondary cone

crusher, tertiary and quaternary crushers; reducing the rock to fragments to a final granularity of

the mineralized material with a target size is 80% < 6.4mm (1/4”). Figure 17-1 shows the

crusher flowsheet.

Figure 17-1. Crusher Flowsheet

The crushed material is agglomerated and water and acid is added to commence the leaching

process. The agglomerated material is trucked to the heap leach area and stacked by front-end

loaders. A grid of hoses with drippers is placed over the heaped material and the first phase of

intensive leaching to recover the oxide ore during the first 3-month period by constant and high

acid-concentration irrigation. The product of this first leaching stage is the “oxide-pregnant

leach solution” (oxide-PLS), which has high copper content and is accumulated in a pond at the

bottom of the leach pads. For the subsequent 6 months the material is leached in an on-off basis,

with lower acid concentration to extract the copper from sulphides (chalcocite, covelite and some

bornite). The resulting PLS (sulphide-PLS) is stored in another pond. Figure 17-2 shows the

flowsheet for the agglomerator and leaching process.




March 29, 2018


Figure 17-2. Flowsheet for Agglomerator and Heap Leaching

The oxide and sulfide PLS are pumped to the solvent extraction plant (SX) where organic resins

are used to capture the copper ions in the solution, over the course of several stages. After the

stripping stage the highly concentrated solution (electrolyte) is sent to the electro-winning plant

(EW) where an electrolysis process is responsible for the deposition of metallic copper over steel

plates. The plates are then sent to the stripping machine, where pure copper sheets (cathodes) are

separated from the steel plates in a semi-automatic stripping machine. The cathodes are then

stored in a finished goods inventory. Figure 17-3 shows the flowsheet for the SXEW plant.




March 29, 2018


Figure 17-3. Flowsheet for SXEW Plant

17.2 Historic Plant Performance

After passing through a series of improvements and adjustments during 2011 until the first half

of 2012, the crushing plant at MTV reached its maximum nameplate capacity in September

2012. It then surpassed it for the next 8 months, demonstrating that it could easily keep a

permanent production over 5,500 tpd. The maximum performance was reached in April 2013

with an average of 6,164 tpd. This production was performed with only three crushing stages; it

was before the inauguration of the quaternary crusher.

The installation of the quaternary crusher was planned since the beginning of the project and, it

was authorized in the original environmental license (RCA), with the following rationale:

1) To decrease the granulometry of the stacked mineral to 80% < 6.4mm (¼”) as all the

metallurgical tests pointed to an increase in recovery from 2 to 11% at this size. The

higher recovery would mainly be obtained from fine-disseminated chalcocitic mineral

from deeper parts of the Don Gabriel open pit, but also in Papomono some significant

gains would be achieved.

2) To increase the nameplate capacity in order to compensate for lower than planned grade

from the Papomono mine, mainly due to the Cumbre open pit low grade. The selected

equipment has a capacity of 400 t/h.

Commissioning of the quaternary crusher took place in August 2013, producing 3,505 tonnes in

one single shift, which demonstrated the new installed capacity at full operation would be higher




March 29, 2018


than 7,000 tpd. Operating at this rate may also require a revision to existing operating permits.

Table 17-1 shows crusher plant production by year for 2010 through October 31, 2017.

Table 17-1. Historic Summary of Crushing Plant Throughput

The cathode production reflects the crushing and heap stacking performance, with some delay.

In November 2012, 1,331 tonnes of cathodes were produced, reaching 89% of the EW plant

capacity. The total cathode capacity has not yet been achieved because 2012, the last year of full

production, had the lowest average copper grade at MTV, 1.0% total copper. Notwithstanding,

the results show that the MTV plant is capable of operating at maximum capacity in all its

stages: crushing, agglomeration, leaching, PLS pumping, extraction and electro-winning. Table

17-2 summarizes cathode production by year for 2010 through October 31, 2017. It does not

account for additional recoverable copper available in that plant as of that date.

Table 17-2. Historic Cathode Production




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17.3 Chloride Leach Process Description

In 2015 MTV undertook a pilot project on site, which was used to perform several tests and

simulations with MTV resource, looking for best-possible operational parameters. The pilot

plant has been expanded since then and now includes 12 3m-high columns, 12 mini-columns

(1m high) and four 20 x 20m pads for heap leaching. After some initial tests, the following

campaigns were driven mainly by the potential use of different salt oxidant agents (chloride-

medium leaching). The use of salts as oxidant agents in copper leaching is not new in Chile.

Since the beginning of this century several mines have been adopting the use of salt water in

heap leaching or different types of salts in agglomeration (e.g. AMSA´s Michilla and Antucoya,

Mantos de la Luna and BHP´s Spence).

MTV engaged ProPipe S.A. (“Propipe”) of Santiago to undertake a Preliminary Feasibility Study

of the chloride leaching process. The following is a description of the flowsheet developed for

the project.

There are no changes to the crushing plant; the feed is processed in four stages to reduce its size

to an 80% < 6.4mm (¼").

The feed, once crushed, is fed by belt to an agglomeration system where water, sulfuric acid and

salt are added in the solid state (dosage 18 kg / t NaCl) for the case of sulfides in the proportions

that the project requires for stabilize the fine particles and generate the sulfation of mineralogical

species that contain copper. Subsequently, the agglomerated material is transported and

deposited in leach pads. The heaps are kept at rest for 30 days, during which, they are kept wet,

to prevent the upper layers from losing moisture, damaging the leaching process. After 30 days,

the pads are irrigated with raffinate solutions (acid solutions), in order to extract the contained

copper (with recoveries around 90%). The leaching process includes chemical leaching stages

for a period of 30-90 days for the oxidized feed and in the case of the sulphide feed with salt,

cycles will be 120 to 150 days in order to fully benefit the mixed ore resource; for these two

circuits independent solutions are considered.

The leaching is carried out by first applying an irrigation solution called raffinate-oxide and

subsequently for the leaching stage of sulfides an irrigation solution called raffinate-sulphide is

applied. Next, the copper-rich solutions (oxide PLS and sulfide PLS) generated in the leach

circuit are concentrated and cleaned using a solvent extraction process. In this operation, a high

concentration copper solution (rich electrolyte) is obtained, which is finally processed by

electrowinning to obtain high quality copper cathodes.

The design considers to treat a maximum flow rate of 400 m3/h of rich solution generated in the

leaching of oxidized copper (PLS-oxide), with average concentration between 2.2-3.7 g/L Cu

and 0.4-0.5 g/L H2SO4; a maximum flow rate of 800 m3/h of rich solution generated in the

leaching of sulfide copper (PLS-sulfide), with an estimated average concentration between 1.8 -

3.5 g/L Cu and 0.5 g/L of H2SO4.

To separate the circuits of solutions in the leaching of oxides and sulfides it has been considered

necessary to operate in parallel with mixer-decanter equipment, with a total design flow of 400




March 29, 2018


m3/h each. The initial configuration of the plant considered four extraction stages (E1-oxide, E2-

sulfur, E3-sulfur and E4-oxide), and a re-extraction stage (S). As the operations progressed, it

was decided to modify an extraction stage and transform it into washing. On the other hand, due

to the increase in chlorine associated with the addition of salt, an additional washing step (L) has

been considered, i.e. 1 E0x + 2Sulf + 1S + 2L. This achieves chlorine control, regardless of the

efficiency of the coalescer system. Additionally, facilities configuration was also provided to

implement a layout with a single washing stage, 2EOx + 2Esulf + 1S + 1L, which will allow to

increase the flow rate to SX, if in the future it is required to increase the production beyond the

current nominal capacity of 18,500 tonnes of copper per year. This design aims to make the

system flexible and allow modify the SX configuration, as the performance of coalescer are

verified and the operation is stabilized with the addition of salt.

The pipe system associated with this plant will be flexible, allowing a configuration with 1 or 2

trains of the PLS from leaching, and with extraction stages operating in series and / or parallel.

The solvent extraction plant will use conventional mixer settlers. In the mixers the mixture of

the aqueous and organic phases is produced by a dispersion of one phase in the other, thus

allowing the chemical transfer of the copper. Controlled drop size agitators will be used to avoid

ultra-fine drops.

Since the organic reagent has the characteristic of being highly selective to copper, the impurities

in the leaching solution return to the circuit until equilibrium is reached for each of them. In this

way, the reagent is practically charged with copper. To control the level of impurities (chlorine

product of salt addition) that are transferred to the organic, product of the longtime of reuse of

this reagent in the plant, three (3) organic coelescers will be considered, two operating and one

stand by.

The loaded organic passes to a coalescer to remove the contents of aqueous entrained (raffinate

solution). Then, the loaded organic is sent to the washing stage and then goes to the second

coalescer. Finally, it is sent to the copper discharge or re-extraction stage, where, due to a

marked change in acidity (pH of the solution), the organic reagent delivers the copper to an

aqueous solution with a high content of acid and copper, generating in this way what is known as

"advance" rich electrolyte, which is transferred to the electrowinning stage.

The concentration of reagent in the calculated organic phase less than or equal to 20% v/v allows

to efficiently extract 90% of the copper from the rich solutions (PLS-oxide and PLS-sulfide)

from the leaching area.

The SX plant also has a system to clean the entrainment of organic phase through electrolyte

filters and thus avoid passing the residual organic to the electrowining plant.

There is also a recovery system for organic trapped from the waste (crud), through a mechanical

rupture plant. The recovery of organic content in the crud is done by tricanter centrifuge to

separating the three phases (organic, aqueous and solid). Once the organic is recovered, it is

cleaned continuously by applying clay in a stirred tank and subsequent separation of the phases

through a filter press.




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The plant has a series of tanks that are located in an intermediate area between the solvent

extraction and the electrowining. This area is known as the tank farm, and in general it is at a

lower level with respect to the SX plant and the EW to facilitate the drainage to it of all the

solutions by gravity, in case of a power shut down or sudden stop of the plant. In this sector

there is a rich electrolyte recirculation tank and operational backup, coalescers, electrolyte filters,

waste recovery system, heat exchangers and all centrifugal circulation pumps for electrolytes and

organic.

For the control of the impurities presented in the organic, coalescers are used for the loaded

organic and washing stages. Due to the use of NaCl in the process it is necessary to use

coalescers for the reduction of the drag of aqueous in the organic.

The process consists of entering the organic phase loaded upwards by a coalescer bed constituted

by a material of high porosity and specific surface, as it is a hydrophobic material is wet by the

organic but not by the water, due to this, it induces the coalescence and water droplets begin to

collect producing the growth of microdroplets. Finally these drops decant and fall to the bottom

of the coalescer from where they are removed. The clean organic leaves at the top of the

coalescer tank.

The coalescers were sized to cover, with ease, the flows and chlorine abatement requirements,

defined in the balance sheet. It has been considered to leave equipment in reserve to cover the

periods of maintenance and cleaning of the filling.

In order to verify the orders of magnitude, a benchmarking was verified, in mining sites where

there are high levels of chlorine in leaching; although mining sites as Michilla, Antucoya,

Cenizas and Pampa Camarones, which are leached with sea water, do not have coalescers,

several operations have high chlorine levels due to the characteristics of the mineral.

17.4 Upgrades to Existing Plant

Upgrades to the existing plant to accommodate the chloride leach process are modest.

A salt metering and transportation system was designed for the addition of salt in the existing

agglomerating drum.

The dosing system consists of a volumetric screw type dosser, fed from a hopper that is mounted

below the floor level of the projected storage building. The feeder discharges on a high slope

conveyor belt (36 °), which transports the salt to the existing ore feed box, in the agglomeration

drum.

In Solvent Extraction (SX) a new mixer-settler will be required to operate as washing stage, for

which a new decanter with primary and secondary mixers with identical characteristics to

existing equipment was designed. In addition, all piping related with the mixer and connections

to existing lines is considered in the design.




March 29, 2018


In the Tank Farm area, three coalescers will be incorporated, one primary, one secondary and a

third one as stand by, thus all the piping elements and pumping systems required for the

operation are also designed. All equipment will be installed within spill containment and its

location was designed in an available area between the existing Tank Farm facilities and the

cathode storage.

Additionally, for the proper operation of the coalescers, the water supply for backwash and an air

supply line will be required designed.

17.5 Power and Water Requirements

Based on historic consumptions and projecting a situation of plant operating close to maximum

capacity, MTV water consumption should be around 34,600 m3 per month, which represents a

flow between 13 and 17 liters per second. This is far below the existing water rights and

pumping water capacity of MTV.

Sulfuric acid consumption is estimated to be in the order of 39,000 tons, which represents an

important saving (up to 40%) in relation to the current acid-leach process.

The consumption of salt is projected to a range between 15,000 and 41,000 tonnes per year

averaging 30,000 tonnes/year.

MTV is connected to the Chilean power grid, and operates under a take-or-pay contract under a

specific minimum consumption, with KDM Energia, a local bio-gas power producer.




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18.0 Project Infrastructure

18.1 Water, Power, Roads and Land

MTV has 22 km of private roads composed of 5km of high-quality dirt road connecting the D-81

paved road to the plant, other 12km connecting the plant to the Papomono mine and another 5

km connecting the Don Gabriel mine to the Papomono road. All these roads include access

easements with the owners of the surface property. Another 5 km of internal roads run inside

MTV private land in Quilmenco Valley.

The company is the owner of 400 ha of surface land in the Quilmenco Valley, one of the few flat

surfaces in the main agricultural valleys available in the Province. Most of this property is steel

mesh-fenced. Other owned properties are the Bermudez property (30ha) in the Manquehua

valley, used for planting of seedlings for reforestation programs, the Escudero property (15 ha),

where the fresh water catchment and storage pool and main pump are located, and the Garcia and

Peralillo properties (around 6.5ha) which are remnants of original properties bought for its water

rights and then used to voluntarily relocate six families that were part time residents of

Quilmenco.

MTV is also the owner of a 4.6km 23 KV power line from the El Tebal Sub-Station (Conafe

Power Company) to the plant. Parallel to this line is the water pipeline, which brings water from

the Escudero pool to the plant.

Figure 18-1. Main Infrastructure in MTV Mine/Plant Complex, MTV 2018




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18.2 Plant Infrastructure

The MTV processing plant is a modern and high-quality facility, with almost new equipment and

infrastructure.

The plant is composed of three main areas: the Crushing-Agglomeration Plant, the Leach-SX-

EW Plant and the Support and Administrative area, with offices, laboratories, warehouses and

workshops.

The description of all the process facilities can be found in Item 17.1, Process Description. In

the figure below all buildings and facilities located in the Quilmenco area can be seen.

Figure18-2. Satellite image showing main infrastructure in the Quilmenco property. Left: overall Quilmenco plant. Left-

top: Administrative and support facilities; right-top: Crushing-agglomeration plant; Right-bottom: TF-SX-EW plant.

MTV 2007




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18.3 Mine Infrastructure

Mine infrastructure is mainly concentrated in the “Portal North” facilities. At this point, around

the northern adit of the transportation tunnel, there is a camp originally installed by a contractor,

El Dial Consortium, which exploited the mine between 2010 and 2012. In this camp are located

the offices for geology, mine engineering, surveying, and mine management, the first-aid post,

canteens and lockers room for employees. Additionally, there is a workshop, prepared to

conduct all the mine equipment maintenance, a warehouse containing all material used in the

mine, and the fuel station. The offices are connected to the national power grid and include

internet and telephone.

As part of the environmental commitments, there is a water treatment plant for the water coming

out of the mine. It is formed by two decantation concrete cells and a 55 x 30m fine material

decantation pool and an automatic neutralization plant, which brings the water to neutral pH

before discharging it into the creek.

The underground mine is composed of a main transportation tunnel of 1,830m length, which

crosses the hill from one side to the other. It starts in the north portal, at 1,470 m.a.s.l and

finishes in the south portal, at 1,315 m.a.s.l. The main tunnel is fully lit. The underground mine

includes ventilation infrastructure or a ventilation shaft in the northern part, with an exhaust fan,

compressed air, power stations and transmission system, pump stations, and internal radio wire-

antenna. More than 3,000m of developments to the north, central and south part of the deposit

are already done.

There is also an area permitted for the Don Gabriel waste storage facility. This was shown in

Figures 16-15 and 16-16. There is currently a small amount of waste from previous operation in

the facility.

MTV is the owner of the underground equipment necessary for the present, small scale,

exploitation. Table 18-1 shows this equipment. Other support equipment are leased or provided

by contractors.




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Figure18-3. Infrastructure of Papomono Mine. Top: Long cross-section showing the main tunnels and shafts, related to

topography; Bottom, left: Satelite image showing the main facilities at Portal North. Right: plan view showing all

underground workings. MTV 2017




March 29, 2018


Table 18-1. Mining Equipment Owned by MTV

19.0 Market Studies and Contracts

The MTV project produces finished copper cathode at the property. This is readily marketable

on world markets.

MTV has a contract with the Kalkos Mineria y Metales for services associated with the

marketing of copper cathodes and sulfuric acid supplies. This company performs annual

negotiations with the shipping lines and other logistics operators, verifying the coordination with

the parties that are necessary to carry out the shipments on behalf of the seller, such

as: shipping lines, warehouses, port terminals and container deposit terminals. Likewise, they

coordinate matters related to approvals with the Chilean government agencies involved in export

operations and perform post-sale logistics service. Kalkos issues and sends to MTV, monthly

report of the physical shipments made with the most relevant details and an annual report on the

relevant target markets such as Hamburg, Rotterdam, Livorno and Salerno. It is reported to IMC

that this contract cost averages about US$ 13,000 per month. Based on 2017 production this

amounts to about $0.01 per pound copper. This is a reasonable rate.

At the end of 2016 MTV entered into an off-take contract with WERCO Trading AG for a

minimum delivery of 500 tonnes of copper cathode per month. The contract is expected to end

on 2019 and has been made on benchmark commercial terms and on standard business basis for

this kind of agreement. This contract establishes that the price will be the monthly average of the

LME price plus CIF (cost, insurance, and freight) Rotterdam. This is typical for the industry.




March 29, 2018


MTV is connected to the Chilean power grid, and operates under a take-or-pay contract with a

specific minimum consumption, with KDM Energia, a local bio-gas power producer. The

current contract is through May 31, 2024. It is reported to IMC this contract costs US$ 210,000

per month and minimum consumption is 65 MWh/day. Based on minimum consumption this

amounts to about $0.11 per kwh, a reasonable rate. As of this writing, MTV is not consuming

the minimum requirement.

The Don Gabriel pit expansion will require a new mining contract, probably with a larger

company than the current contractor. It is also likely there will be a contractor for ore haulage

from Don Gabriel and Papomono to the plant. This distance is about 13km for Papomono and

17km for Don Gabriel. As of this writing, these contracts are being negotiated.




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20.0 Environmental Studies, Permitting and Social or Community Impact

Sustainable Development Policy at MTV is concentrated in three different areas: Environmental

Protection, Community Relations and Safety. In order to produce efficiently and carry out

sustainable development goals, MTV works closely with the project’s stakeholders (community

members, employees, and shareholders) demonstrating mutual respect and careful management.

The MTV project is fully permitted with all necessary government and environmental licenses.

20.1 Permits and Environmental Licenses

During each stage of the MTV project, from the discovery of copper resources to the closing of

the mines, environmental permits and licenses are necessary to operate. Since the discovery of

the deposit, MTV has complied with all environmental laws and obtained all necessary licenses

and permissions to explore and operate.

These licenses, known as “Resoluciones de Calificación Ambiental” (RCA) or Environmental

Qualification Resolutions, result from an environmental evaluation process after the Company

submits either an Environmental Impact Declaration (DIA) or an Environmental Impact Study

(EIA).

The MTV project, throughout its history, has obtained three RCAs.

20.1.1 RCA 012 Manquehua Prospection Tunnel

RCA 012, which was granted in January of 2007, is the result of an Environmental Impact

Declaration submitted in October 2006. This declaration was submitted after initial surface level

drillings showed the existence of a copper deposit. The Manquehua Tunnel was necessary in

order to determine the actual size of the mineral deposits and to perform a technical evaluation.

These prospection studies were economically driven in order to determine the feasibility of an

eventual exploitation of the resources. The tunnel was 1,140 meters long with a 4-meter x 4-

meter entrance.

20.1.2 RCA 283 Manquehua Prospection Tunnel Modification

RCA 283 was granted in September of 2008 in order to modify the Manquehua Prospection

Tunnel, extending it to the south and joining the Cárcamo-Manquehua valleys. RCA 283

granted Vale, owners of the project at the time, permission to create a second, southern entrance

to the tunnel. This new entrance increased accessibility, ventilation and elongated the tunnel to

1,800 meters long. This tunnel was further used as the main transportation level for the

Papomono underground mine.




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20.1.3 RCA 265 MTV Project

RCA 265 is MTV’s most comprehensive environmental license. This permit, which was

approved in November of 2009, mandates the environmental, safety and social requirements for

the project in the stages of Construction, Operation and Closing. RCA 265 is the result of an

Environmental Impact Study that was presented by Vale in October of 2008 and reviewed by all

relative public service agencies. This license dictates all processes carried out on the project site.

20.2 Land Easements

The MTV property spans across 250 hectares, yet the Company has 48,838 hectares of mineral

rights. In order to capitalize on these rights, the Company has negotiated different land

easements and rental contracts allowing operations and exploration to be located on property not

owned by the Company.

Table 20-1 describes in more detail which areas of the MTV project are located on MTV

property, and which areas of operation can be found on land owned by a third party.

The Company has negotiated other land easements concerning the property where different

reforestation projects are located. With 250 hectares of trees to plant, MTV has negotiated with

its neighbors in order to plant trees on their property.

Table 20-1. Land Ownership and Easements

20.3 Water Rights and Use

MTV has rights to both superficial and underground water sources. Water is transported

throughout the property through irrigation canals from two different watersheds, the Chalinga

watershed and the Choapa watershed. The Choapa watershed, in particular, is a reliable water

source even during the dry months in Salamanca.




March 29, 2018


In addition to these watersheds, the rights to underground water reserves are available for use by

MTV as well as the possibility to use underground water from the Papomono mine, which flows

at a rate of approximately 2 to 5 liters/second.

At full capacity, the MTV project requires up to 20 liters/sec of water, less than a third of the

available water rights. Figure 20-1 shows the water rights at MTV.

Figure 20-1. Water Rights in MTV, MTV 2017

The MTV processing plant operates with exceptionally low water consumption, and the

Company has won awards recognizing this achievement. Water flows through a closed-circuit

system throughout the different processes of the plant and all water that is used is recycled

besides that which is lost through evaporation.

In order to minimize evaporation, the irrigation system in the leach pads was designed so that

liquid solution goes directly into the material rather than being sprayed in the air on top of the

material. This process significantly reduces evaporation and keeps the project’s water

consumption at low levels. Total water consumption (including non-operational use) is around

0.11m³/t, which is among the lowest in industry. See Figure 20-2.




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Valley of

Chuchiñi

Valley of

Chalinga

Valley of

CarcamoTotal

2015 9 8 4 21

2016 8 9 4 21

2017 11 11 6 28

Number os Projects

Year

Figure 20-2. MTV historic average water consumption per tonne of ore (observation: 2014

does not consider the re-handling of spent ore, which produced the higher consumption)

20.4 Community Relations and Social Licenses

MTV’s channel for social investment and community relations is the MTV Foundation, a non-

profit charitable organization dedicated to improving the quality of life in the communities that

are in the areas of direct and indirect impact of the project.

A board of directors made up of five members manages the Foundation. Two members are

representatives from MTV, and the other three directors come from each of the three valleys that

are in the area of impact of the project, the Chalinga Valley, the Cárcamo Valley and the

Chuchiñí Valley.

The Foundation operates under a participation based management model in which community

organizations, with help from the Foundation, create project proposals and present them to the

board. By requiring community participation, MTV is able to ensure that the projects that are

funded are of the utmost concern for the people and that these projects have the greatest positive

impact on the largest group of community members.

Between 2015 and 2017, 70 projects funded by Foundation MTV were realized in different

communities throughout the three valleys around the project.

Figure 20-3. Foundation MTV Projects 2015-2017




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20.5 Health and Safety Performance

MTV works with a goal of zero accidents in all areas of operation, and in March of 2016, the

Company celebrated 1 consecutive year without any Lost Time accidents. In order to achieve

this high level of safety, MTV takes different precautionary actions. For example, all people that

work on-site go through extensive training prior to entering their specific roles. Regular safety

workshops are also held in order to make sure all employees are up to date on safety procedures

and requirements.

The Company has a Joint Committee on Hygiene and Safety that works to bring different safety

initiatives to the Company and guarantees that all aspects of operation are up to date on safety

and health standards. The Joint Committee at MTV has earned the Company Gold level standing

with “Mutual de Seguridad” for the work that they do in risk prevention.

In the last two years, MTV achieved significant decreases in the occurrences of accidents. There

was only one Lost Time (LT) accident in 2015 and 2016, compared to 4 in 2014 and 7 in 2013.

The following table shows how MTV compares to national averages for medium size mining

companies in Chile in terms of accidents. The different figures are calculated considering the

number of workers (both from MTV and contracted companies) and the number of hours worked

during 2016.

Table 20-2. 2016 Accident Index. Data from 12/2015 to 12/2016. SONAMI Website

20.6 Mine Closure

The law number 20.551 of October 28th

of 2011, established the obligation of all mining

facilities of more than 10 ktonnes/month processing in Chile to develop a closure plan.

Notwithstanding, MTV had been presenting several partial plans and commitments for

environmental and sectorial authorities during previous licensing stages, which were considered

as the basis for the formal mine closure plan, under the new law. This plan was prepared by

Arcadis in 2014.

Table 20-3 presents all the commitments for site closure, consolidated in the Arcadis report,

together with the respective previous authorization resolution from the government authorities.




March 29, 2018


Table 20-3. Commitments for Closure and Respective Resolutions

Arcadis calculated the unit costs for each activity, considering the direct costs for the necessary

materials, equipment and man-hours, adding general expenses and contractor profit margins.

Also calculated are administration costs such as owners team, engineering and studies needed for

execution, and also a contingency. The plan also counts for the post-closure activities such as

water monitoring during the year after closure and site inspections and maintenance for the next

three years after closure.

AREA

Slope Stabilization Res 0800/2010 PCFM

Acess closure Res 0800/2010 PCFM

Signals instalation Res 0800/2010 PCFM

Adapt peripheral rain water chanel Res 0800/2010 PCFM

Portals, adits and shafts closure RCA 283/2008 DIA

Revegetation of slopes (Cumbre and PPM_N) Res 0800/2010 PCFM

Dismantling of instalations/facilities RCA 265/2009 EIA

Transport of hazard/other waste Res 0906/2010 PCFM

Peripheral channel around heap pads Res 0008/2011 PCFM

Heaps slopes stabilization Res 0008/2011 PCFM

Flatness and compaction of heap top level Res 0008/2011 PCFM

Coverage of heap slope with stored top soil Res 0008/2011 PCFM

Heap spent ore rinsing (neutralization) for 1 year Res 0008/2011 PCFM

Heap toe wall construction Res 0008/2011 PCFM

Signals instalations Res 0008/2011 PCFM

Dismantling of equipement and instalations RCA 265/2009 EIA

Transportation of hazard/other wastes Res 0906/2010 PCFM

Pools closure with waste rock and leveling RCA 265/2009 EIA

Economic assessment for reprocessing spent ore Res 0008/2011 PCFM

Adapt peripheral rain water channels Res 0800/2010

Slope stabilization (stability study) Res 0800/2010

Leveling and compaction of top platform RCA 265/2009 EIA

Revegetation of altered surfaces RCA 265/2009 EIA

Accesses closure Res 0800/2010

Safety Berm construction RCA 265/2009 EIA

Dismantling of instalations, deenergizing and surface levelingRCA 265/2009 EIA

Transportation of hazard/other wastes RCA 265/2009 EIA

Pools closure with waste rock and surface leveling RCA 265/2009 EIA

Access closure with barriers RCA 265/2009 EIA

Signals instalations RCA 265/2009 EIA

COMMITMENTS FOR CLOSURE AND RESPECTIVE RESOLUTIONS

RESOLUTION

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COMMITMENT




March 29, 2018


COST (UF)

COST

(KUSD) on

03/2018

Total Direct Costs 103,351 4,584

Total Indirect Costs 8,773 389

Direct+Indirect Costs 112,124 4,973

Contingencies (17.7%) 19,846 880

Closure costs 131,969 5,853

VAT (19%) 25,074 1,112

TOTAL CLOSURE COST 157,043 6,965

Total Direct+Indirect costs 1,945 86

Contingencies (15%) 292 13

post closure cost 2,237 99

VAT (19%) 425 19

TOTAL POST CLOSURE COST 2,661 118

ITEM

PO

ST-C

LOSU

RE

STA

GE

CLO

SUR

E ST

AG

E

The costs were established in UF (“Unidad de Fomento”), an index which is adjusted daily by

the Chilean inflation rate. The following table shows the calculated costs for the closure and

post-closure stages and an approximate conversion to US dollar at the time of this report.

Table 20-4. Closure Costs

The closure cost is based on 26,966 pesos per UF, and 608 pesos to the US$ and are current as of

March 25, 2018. The closure cost in US$ is 157,043 x 26,966 / 608 = US$ 6,965,000.

An eleven years period was preliminarily considered for mine closure projections. Based on this

projection a schedule for presentation of incremental Bank Guarantee Bonds was proposed, from

2016 to 2026. It is important to note that the effective yearly cost for MTV, before the mine

closure, is the financial cost of the bank guarantee.

The mine closure plan was submitted to Sernageomin and approved in November 30th

of 2016.




March 29, 2018


21.0 Capital and Operating Costs

21.1 Capital Costs

The capital and operating cost estimates presented in the section are specific to the expansion of

the Don Gabriel Manto open pit.

The plant, and all necessary infrastructure, for the Don Gabriel pit expansion are in place.

Mining will be done by a contractor, eliminating significant equipment purchase costs. The only

capital cost is related to estimated pre-stripping of 2.67 million tonnes during 2018 at a unit cost

of US$ 2.15 per tonne. This amounts to US$ 5.74 million. As discussed in Section 16, this is

based on a quotation by Vecchiola S.A.

The capital cost to convert the plant to chloride leach process is estimated at US$ 6.9 million, but

that capital will be carried by all the deposits, and is not specific to Don Gabriel.

21.2 Operating Costs

Unit costs for this study were presented in Section 16.3 and are summarized as follows:

Ore mining per tonne $ 2.35

Waste mining per tonne $ 2.15

Process cost per ore tonne $ 9.73

Ore haulage per ore tonne $ 2.21

G&A cost per ore tonne $ 3.09

SXEW cost per pound $ 0.19

Ore mining, waste mining, and ore haulage are based on contractor quotes.

22.0 Economic Analysis

22.1 Economic Results

The economic results for the exploitation of the Don Gabriel Manto deposit are based on the

following parameters and assumptions:

The mine production schedule presented in Table 16-3.

A base case copper price of US$ 2.75 per pound.

The unit costs presented in Section 21.2.

Processing recovery is based on the salt leach process as described in Section 13.2,

except for 2018 which is based on acid leaching.

It is the opinion of IMC that these parameters are justified based on the work completed for this

study.




March 29, 2018


Table 22-1 presents the analysis for the Don Gabriel Manto open pit based on the production

schedule. Year 2018 is presented by months and the remaining periods by quarter year periods.

The table shows payable copper pounds and gross revenue. Costs for ore mining (including

transport), waste mining, processing, G&A, and SXEW are shown and are based on the unit

costs presented in the previous section.

G&A and SXEW costs for 2018 are $9.04 per tonne and $0.20 per pound respectively for the

acid leach process.

The pre-stripping costs discussed in the previous section are being carried as operating costs for

this analysis, i.e. they are included in the mining costs. For the year as a whole, the project will

probably generate enough cash to cover this cost, especially including the tolling business and

some production from Papomono. Some working capital will probably be required; that is not

included in this analysis.

The analysis indicates an undiscounted cash flow of US$ 70.1 million and an operating cost of

$1.88 per pound finished copper. At an 8% discount rate, the Net Present Value (“NPV”) is

$50.6 million. Note that with no significant capital costs the financial measures of internal rate

of return (“IRR”) and payback period cannot be calculated.

Note that this analysis does not include royalties or taxes. These are discussed in Sections 22.3

and 22.4.

The economic analysis only includes proven and probable mineral reserves from the Don Gabriel

Manto production schedule (Table 16-3). Inferred mineral resource is assumed to be waste.

Mineral resources that are not mineral reserves do not have demonstrated economic viability.

22.2 Sensitivity Analysis

Table 22-2 presents a sensitivity study for the economic analysis for the exploitation of the Don

Gabriel Manto deposit. Cases 1 through 5 show NPV at various discount rates. 8% is

considered the base rate. The NPV ranges from US$ 56.9 million at 5% to US$ 39.1 million at

15%. MUSD is million US$.

Case 6 and 7 shows the impact of copper prices of $3.00 and $2.50 per pound, approximate

+10% changes. Note that plus/minus 10% changes to grade and/or recovery would have

approximately the same response.

Case 8 and 9 shows the impact to +10% changes in the operating costs. There is significant

impact, but not as high as the price sensitivity.

Case 10 shows the impact of acid leach recoveries for the project life, i.e. the result if the salt

leach process is not implemented. Copper recovery reduces to about 80% over the project life

versus 87% for the base case.




March 29, 2018


22.3 Royalties

There is a royalty payable to the Chilean government depending on production. Currently

production is below the minimum of 12,000 mtpy copper so there are no payments. From 12 to

15 ktonnes of copper production the marginal rate is 0.5% and between 15 and 20 ktonnes of

copper production the marginal rate is 1.0%. At full production the effective royalty rate for

total MTV production will be about 0.3%. This was considered inconsequential for economic

analysis purposes.

22.4 Tax Considerations

With the construction costs and operating losses sustained by Vale and the former owners, MTV

has approximately $390 million of tax losses available to apply to operating profits. On this

basis, income tax has not been considered in our economic analysis.




March 29, 2018


Table 22-1. Economic Results - US Dollars - Copper Price of $2.75/lb

Copper Payable Ore Waste Total Process G&A SX/EW Total Free Cost/ NPV

Mining Cutoff Copper Revenue Mining Mining Mining Cost Cost Cost Costs Cash Pound 8%

Year (%) (klbs) ($x1000) ($x1000) ($x1000) ($x1000) ($x1000) ($x1000) ($x1000) ($x1000) ($x1000) (US$) ($x1000)

Jan-18 0.31 374 1,028 85 175 260 169 58 75 561 467 1.50 464

Feb-18 0.31 261 718 77 179 256 153 44 52 505 213 1.94 210

Mar-18 0.31 310 852 161 180 341 319 90 62 812 40 2.62 40

Apr-18 0.31 599 1,646 147 361 508 291 93 120 1,011 635 1.69 619

May-18 0.31 675 1,856 137 688 825 272 93 135 1,325 531 1.96 515

Jun-18 0.31 907 2,493 230 1,074 1,304 455 155 181 2,095 398 2.31 383

Jul-18 0.31 749 2,060 199 1,089 1,287 394 134 150 1,965 95 2.62 91

Aug-18 0.31 559 1,537 159 1,108 1,266 315 104 112 1,797 -260 3.22 -247

Sep-18 0.31 701 1,926 212 1,083 1,295 420 143 140 1,999 -72 2.85 -68

Oct-18 0.31 732 2,012 233 1,073 1,306 462 155 146 2,068 -56 2.83 -53

Nov-18 0.31 693 1,907 238 1,070 1,308 472 155 139 2,074 -167 2.99 -156

Dec-18 0.31 663 1,822 240 1,070 1,309 475 155 133 2,071 -249 3.13 -230

Q1 2019 0.31 2,949 8,108 1,124 3,125 4,249 2,398 658 560 7,866 243 2.67 220

Q2 2019 0.31 3,208 8,821 1,095 3,139 4,234 2,337 658 609 7,838 983 2.44 876

Q3 2019 0.31 3,028 8,328 1,021 3,174 4,195 2,179 602 575 7,550 778 2.49 680

Q4 2019 0.31 3,508 9,646 1,027 3,171 4,198 2,192 658 666 7,715 1,931 2.20 1,656

Q1 2020 0.31 3,593 9,882 980 2,978 3,958 2,091 658 683 7,390 2,492 2.06 2,095

Q2 2020 0.31 3,724 10,240 1,011 2,963 3,975 2,158 658 707 7,498 2,742 2.01 2,262

Q3 2020 0.31 4,074 11,205 1,053 2,943 3,997 2,248 658 774 7,677 3,528 1.88 2,855

Q4 2020 0.31 3,077 8,461 1,020 2,708 3,728 2,177 658 585 7,148 1,313 2.32 1,042

Q1 2021 0.31 3,191 8,775 1,017 2,262 3,279 2,171 658 606 6,715 2,060 2.10 1,604

Q2 2021 0.31 3,040 8,360 1,037 1,327 2,364 2,212 658 578 5,812 2,548 1.91 1,946

Q3 2021 0.31 3,072 8,449 1,035 1,290 2,325 2,209 658 584 5,776 2,673 1.88 2,003

Q4 2021 0.31 3,446 9,478 1,025 964 1,989 2,187 658 655 5,489 3,989 1.59 2,932

Q1 2022 0.31 3,600 9,899 1,018 724 1,741 2,171 658 684 5,255 4,644 1.46 3,349

Q2 2022 0.31 3,178 8,740 1,007 1,231 2,237 2,148 658 604 5,647 3,092 1.78 2,187

Q3 2022 0.31 3,189 8,769 1,006 1,239 2,245 2,147 658 606 5,656 3,113 1.77 2,160

Q4 2022 0.31 3,762 10,346 988 789 1,777 2,108 658 715 5,258 5,088 1.40 3,463

Q1 2023 0.31 4,256 11,704 985 844 1,829 2,101 658 809 5,396 6,308 1.27 4,211

Q2 2023 0.31 4,338 11,929 995 897 1,891 2,122 658 824 5,496 6,433 1.27 4,213

Q3 2023 0.31 4,015 11,042 1,013 790 1,803 2,162 658 763 5,386 5,657 1.34 3,634

Q4 2023 0.31 3,923 10,787 996 542 1,538 2,126 658 745 5,067 5,720 1.29 3,604

Q1 2024 0.31 3,138 8,630 993 1,066 2,059 2,118 633 596 5,407 3,223 1.72 1,993

TOTAL 80,531 221,459 23,564 47,312 70,876 49,961 15,117 15,373 151,326 70,133 1.88 50,553




March 29, 2018


Table 22-2. Sensitivity AnalysisDiscount Payable Free Cost/

Rate Copper Cash NPV Pound

Case Description (%) (mlbs) (MUSD) (MUSD) (US$)

1 Base Case - $2.75 Copper @ 5.0% 80.5 70.1 56.9 1.88

2 Base Case - $2.75 Copper @ 8.0% 80.5 70.1 50.6 1.88

3 Base Case - $2.75 Copper @ 10.0% 80.5 70.1 46.8 1.88

4 Base Case - $2.75 Copper @ 12.0% 80.5 70.1 43.5 1.88

5 Base Case - $2.75 Copper @ 15.0% 80.5 70.1 39.1 1.88

6 Copper Price of $3.00/lb 8.0% 80.5 90.3 66.0 1.88

7 Copper Price of $2.50/lb 8.0% 80.5 50.0 35.1 1.88

8 Operating Costs +10% 8.0% 80.5 55.0 38.6 2.07

9 Operting Costs -10% 8.0% 80.5 85.3 62.5 1.69

10 Acid Leach Recovery 8.0% 73.9 53.1 37.8 2.03

23.0 Adjacent Properties

There are no important mineral properties adjacent to the MTV property.

24.0 Other Relevant Data and Information

MTV sold 2.7 million pounds of copper in the last quarter of 2017. Cash costs per recoverable

pound placed on the heap leach pad were US$2.37. In the fourth quarter of 2017, MTV crushed

and processed 2.3 thousand tonnes per day, a 29% increase over the average of the prior three

quarters. Total material crushed in 2017 was 682 thousand tonnes, delivering 12.9 million

pounds of recoverable contained copper to the heap leach pad. Recent increases in sulfide

material production have increased inventory build-up in the heap leach, and we expect to see the

benefit of increased mining production in the latter part of 2017 in the coming months.

In addition to the Don Gabriel and Papomono mineral resources and mineral reserves, MTV has

considerable business related to custom toll processing and ore purchase from ENAMI and




March 29, 2018


nearby artisanal miners. The amount of mineral resource delivered from these third parties is

highly correlated to copper price.

Mineralized material supply from third party miner activity is increasing with the higher copper

price, reaching 23 thousand tonnes in December 2017, and total deliveries of third-party material

of 51 thousand tonnes in the fourth quarter. It is reported to IMC that MTV expects this increase

in third party supply to continue in 2018, although budgets for deliveries of 15 thousand tonnes

per month. Deliveries from ENAMI were 13 thousand tonnes of mineralized material in the

fourth quarter of 2017.

IMC does not know of any additional information or explanation that is necessary to make this

technical report understandable and not misleading.

25.0 Interpretation and Conclusions

The goal of this Technical Report was to present an NI 43-101 compliant Mineral Resource

estimate for all the Don Gabriel and Papomono mineral deposits, a Preliminary Feasibility Study

for the implementation of chloride media leaching, and a Feasibility Study for the expansion of

the Don Gabriel Manto open pit, for its 70%-owned MTV property located near Salamanca,

Chile. The highlights for these items are summarized as follows:

Updated Mineral Resource Estimate

Total measured and indicated mineral resource of 18.3 million tonnes at 1.03% CuT

containing 417 million pounds of copper.

Total inferred mineral resource of 3.5 million tonnes at 1.11% CuT containing 84.4

million pounds of copper.

Salt Leach Preliminary Feasibility Study

Potential to increase copper recoveries by 10%, up to a 40% reduction in the leaching

cycle time, and up to 40% reduction in sulfuric acid consumption.

Estimated capital cost of US$6.9 million, which includes the activities from detailed

engineering to the end of construction.

Approximately 11 months to implement.

Less than two year payback.

Don Gabriel Manto Feasibility Study

Almost triples production from the Don Gabriel Manto open pit.

Mine plan based on Mineral Reserves of 5.17 million tonnes at 0.81% CuT at a copper

cut-off grade of 0.25%.

Produce approximately 14 million pounds of copper per year over a six-year reserve life.

The expansion could commence as early as the 2nd

quarter of 2018.




March 29, 2018


The Mineral Reserves and Mineral Resource estimates for the MTV property are effective as of

January 1, 2018.

IMC does not believe that there are significant risks to the mineral resource or mineral reserve

estimate based on environmental, permitting, legal, title, taxation, socio-economic, marketing, or

political factors. The project is in a jurisdiction friendly to mining and has operated in the past

and is currently operating at a low level of production. The most significant risks to the mineral

resource are related to economic parameters such as prices lower than forecast, recoveries lower

than forecast, or costs higher than the current estimates. These could cause significant

impairment to expected results and even result in termination of operations.

The operation is probably particularly sensitive to low copper prices because in addition to loss

of revenue from operations there will also likely be less third party plant feed which will impact

the tolling business.

The Don Gabriel mineral reserve also anticipates a positive preliminary feasibility study and

production decision for the Papomono Massivo deposit. Some of the key economic parameters,

particularly unit costs, depend on higher production rates than the Don Gabriel pit will provide

by itself.

26.0 Recommendations

IMC recommends the following work to advance the MTV project:

A Preliminary Feasibility Study should be conducted for the Papomono Massivo deposit

to develop additional mineral reserves and begin exploitation of the deposit.

A Preliminary Economic Analysis should be conducted for Cumbre, PPM South, Mantos

Connection, North Mantos, PPM North, Epithermal, and Don Gabriel veins to define

possible mining methods and additional drilling and studies that are required to upgrade

the mineral resources to mineral reserves.

The Don Gabriel pit expansion should commence with stripping in phases 4 and 5.

The plant should be upgraded to accommodate the salt leaching process.

Table 26-1 shows the estimated costs for these items, which amounts to US$ 13.1 million.

Table 26-1. Recommendations for Ongoing Work

Cost (US$x1000)

Papomono Massivo Preliminary Feasibility Study $292

Preliminary Economic Analysis – Additional Deposits $135

Don Gabriel Pit Expansion – Waste Stripping $5,740

Upgrade Plant to Chloride Leach Process $6,898

TOTAL $13,065

The recommendation to commence the expansion of the Don Gabriel pit is based on the

economic analysis presented in Section 22. The cost is based on an estimate of 2.67 million




March 29, 2018


tonnes of pre-strip waste during 2018 at the unit cost of $2.15 per tonne. Phase 5 stripping is

expected to commence very soon after the start of phase 4 stripping, so it is not contingent on it.

The economic analysis also indicates the plant upgrade to the chloride leach process can be

justified based on Don Gabriel recovery results alone.




March 29, 2018


27.0 References

Arcadis, 2014 Compañía Minera Tres Valles - Plan de Cierre Regimen Transitorio

Boric, R., Holmgren, C., Wilson, N.S.F., Zentilli, M. (2002) The geology of the El Soldado

manto type Cu (Ag) deposit, Central Chile. In Porter, T.M. (Ed), - Hydrothermal Iron Oxide

Copper-Gold & Related Deposits... Vol. 2, PGC Publ., Adelaide, 163-184.

D.D. Munro, TWP Projects (Ply) Lld, “Inclined Caving as a Massive Mining Method”, 2010.

D.H. LAUBSCHER, “A Geomechanics Classification System for the Rating of Rock Mass in

Mine Design”, Oct. 1990.

E-Mining Technology S.A., “Informe Extendido – Estimacion de Parametros de Diseno y

Analisis de Estabilidad Rajo Don Gabriel”, Mayo 2011.

E-Mining Technology S.A., “Anexo a. Resultados Análisis de Estabilidad Pseudo-Estático

Addendum Análisis Estabilidad Pseudo-Estático Diseño Rajo Don Gabriel”, May 2011.

E-Mining Technology S.A., “Análisis Estabilidad Condición Pseudo-Estática Diseño Rajo Don

Gabriel”, April, 2012.

Geoinvestment Limitada, “Analisis, Evaluacion y Redefincion Angulo Global Pit Don Gabriel –

Sociedad Contractual Minera Tres Valles – Salamanca IV Region de Coquimbo, Chile – Informe

Final”, Julio 2015

Gilberto Schubert, Quiroga, Enrique, Luis Merino, “Mining Method for Tres Valles Copper

Deposit - Selection and Design”, 2016, Proceedings of the International Conference “Innovations

in mine enterprises engineering”, Saint Petersburg Mining University, Russia. p.18

Ingenieria de Rocas Ltda. (Ingeroc), “Informe de Estabilidad Rajo Don Gabriel - P-IDR-196-

150-12-2-0”, Marzo 2013

Ingeroc SpA, “ Mining Method, Selection and Design – Presentacion final_BC.pdf”, 2015

Maksaev V. (Coordinator), Townley B, Palacios C. and Camus F.(2007) Metallic ore deposits.

In: Moreno T. and Gibbons W.(Ed.), - Geology of Chile, Geological Society of London, Geology

of Series

MTV, ”Tres Valles Mining Technical Report Ver-006_04-09-17 - Draft” , September, 2017

Minera Tres Valles, “Tres Valles Consolidating and Updating Report - The dawn of a new stage

of operation”, Ver-005_20-01-17, 2017.




March 29, 2018


Minera Tres Valles, “Scoping Study for Underground Exploitation of High Grade Orebodies in

Don Gabriel-Veins Mineral Deposit”, December 2015

Minera Tres Valles, “ TresValles Property and Infrastructure”, 2017

Minera Tres Valles, “TresValles Geology, Resources and LT Reserves”, 2017

Oryxeio Ingeniería Limitada, “Copper Recovery Statement on Mineral Reserves - Sociedad

Contractual Minera Tres Valles - ORYXEIO-MTV-2018-R01-0”, January 2018.

Propipe S.A., “Compania Minera Tres Valles – Prefeasibility Study – Chloride Media Leaching

– Final Report”, February 2018.

Q&Q Ltda, “Proyecto Explotacion Vetas de Alta Ley – MTV”, June 2015.

Q&Q Ltda, “Reopening of Don Gabriel Pit”, November 2015.

Q&Q Ltda, “Plan de Produccion y Evaluaction Economica Preliminar Mina Papomono con

Nueva Modelo Geologico”, March 2016.

Snowden, “Soc. Contractual Minera Tres Valles: Resource/Reserve Practices – Standard

Procedures”, March 2013.

Snowden, “Cia. Contratual Tres Valles: Resource and Reserve Statement”, May 2013.

Terradap Chile, “Resguardo Mensual Concesiones Mineras Proyecto Sociedad Contractual

Minera Tres Valles”, March 3, 2018.

Terradap Chile, “Resguardo Mensual Concesiones Mineras Proyecto Sociedad Contractual

Minera Tres Valles”, December 30, 2017.

Vale, “Technical Report - Visit to Tres Valles Project”, November 2008

Vale,”Reporte QA/QC SCM Tres Valles - Campaña Sondajes 2012”, Diciembre 2012

Vale, “Reporte QA/QC Proyecto Tres Valles”, Octubre 2009

Vale, “Reporte QA/QC Proyecto Tres Valles”, Octubre 2010

Vale, “Reporte QA/QC Proyecto Tres Valles”, Diciembre 2011

Vale, ”Reporte final Control de Duplicados de Testigos de Sondajes”, Abril 2009




March 29, 2018


Appendix A. Certificates of Qualified Persons




March 29, 2018


CERTIFICATE OF QUALIFIED PERSON

I, Michael G. Hester, do hereby certify that:

1. I am currently employed as Vice President and Principal Mining Engineer by Independent

Mining Consultants, Inc. (“IMC”) of 3560 East Gas Road, Tucson, Arizona, 85714, USA,

phone number (520) 294-9861.

2. I hold the following academic qualifications:

B.S. (Mining Engineering) University of Arizona 1979

M.S. (Mining Engineering) University of Arizona 1982

3. I am a Fellow of the Australian Institute of Mining and Metallurgy (FAusIMM #221108), a

professional association as defined by National Instrument 43-101 – Standards of Disclosure

for Mineral Projects (“NI 43-101”). As well, I am a member in good standing of the

following technical associations and societies:

Society for Mining, Metallurgy, and Exploration, Inc. (SME Member # 1423200)

Member of Resources and Reserves Committee of the Society of Mining, Metallurgy,

and Exploration.

The Canadian Institute of Mining, Metallurgy and Petroleum (CIM Member #100809)

4. I have worked in the minerals industry as an engineer continuously since 1979, a period of 39

years. I am a founding partner, Vice President, and Principal Mining Engineer for

Independent Mining Consultants, Inc. (“IMC”), a position I have held since 1983. I have

been employed as an Adjunct Lecturer at the University of Arizona (1997-1998) where I

taught classes in open pit mine planning and mine economic analysis. I am also a member of

the Resources and Reserves Committee of the Society of Mining, Metallurgy, and

Exploration since March 2012. I was employed as a staff engineer for Pincock, Allen &

Holt, Inc. from 1979 to 1983. During my career I have had extensive experience reviewing

and auditing deposit sampling methods, analytical procedures, and QA/QC analysis. I also

have many years of experience developing mineral resource models, developing open pit

mine plans and production schedules, calculating equipment requirements for open pit

mining operations, developing mine capital and operating cost estimates, performing

economic analysis of mining operations and managing various PEA, Pre-Feasibility, and

Feasibility Studies.

5. I have read the definition of “Qualified Person” (“QP”) set out in NI 43-101 and certify that

by reason of my education, affiliation with a professional association (as defined in NI 43-

101) and past relevant work experience, I fulfill the requirements to be a “Qualified Person”

for the purposes of NI 43-101.

6. I am the responsible for the overall report, with the exception of Sections 13 and 17, of the

technical report titled “Minera Tres Valles Copper Project – Salamanca, Coquimbo Region,




March 29, 2018


Chile - NI 43-101F1 Technical Report – Mineral Resource Estimate, Chloride Leach

Processing, and Don Gabriel Manto Pit Expansion” (the “Technical Report”), dated March

29, 2018, prepared for Sprott Resource Holdings Inc.

7. My prior involvement with the property includes work during May and June 2017 for a due

diligence review of the project conducted for another party.

8. I last visited the MTV site on September 20-21, 2017. I also visited the site on May 17-18,

2017.

9. As of the date of the this certificate, to the best of my knowledge, information and belief, the

portions of the Technical Report for which I am responsible contain all scientific and

technical information that is required to be disclosed to make the Technical Report not

misleading.

10. I am independent of the issuer applying all of the tests in Section 1.5 of National Instrument

43-101.

11. I have read National Instrument 43-101 and Form 43-101F1, and the Technical Report has

been prepared in compliance with that instrument and form.

12. I consent to the filing of the Technical Report with any stock exchange and other regulatory

authority and any publication by them for regulatory purposes, including electronic

publication in the public company files on their website accessible by the public, of the

Technical Report.

Dated this 29th

day of March, 2018

“signed” Michael G. Hester__

Signature of Qualified Person

Michael G. Hester, FAusIMM_

Print Name of Qualified Person




March 29, 2018



I, Enrique D. Quiroga Vega, graduated as a Mining Engineer, with a post-graduate degree in

Metallurgy, do hereby certify that:

1. I am a Mining Engineer, independent consultant located at 7292 Quillapi Street, Huechuraba,

Santiago, Chile.

2. My Degree is a Mining Engineer from the University of Chile, obtained in 1984 with

postgraduate studies in Hydrometallurgy and Electrochemistry at the same university in

1995.

3. I am a registered member of the Comisión Calificadora de Competencias en Recursos y

Reservas Mineras (Chilean Mining Commission) with registration No. 0039.

4 I belong to the Institute of Mine Engineers of Chile (IMCH) with License No. 570 and in

the College of Engineers of Chile, License No. 17971-0

5. I have practiced my profession since 1979.

6. I have signed as a competent person, in projects abroad, such as San Jorge, Argentina;

Petaquilla Gold, Panama and in Chile: Berta Project; Talcuna; Dayton and others.

7. I have read the definition of "Qualified Person" set out in NI 43-101 and certify that by

reason of my education, affiliation with a professional association (as defined in NI 43-101)

and past relevant work experience, I fulfill the requirements of “Qualified Person” for the

purposes of NI 43-101.

13. I am the qualified person responsible for Section 17 of the technical report titled “Minera

Tres Valles Copper Project – Salamanca, Coquimbo Region, Chile - NI 43-101F1 Technical

Report – Mineral Resource Estimate, Chloride Leach Processing, and Don Gabriel Manto Pit

Expansion” (the “Technical Report”), dated March 29, 2018, prepared for Sprott Resource

Holdings Inc.

9. I participated in the Scoping Study of the; “Re opening of the Open Pit Don Gabriel” and the

“Block Caving of Papo Mono Masivo”.

10. As of the date of this certificate, to the best of my knowledge, information and belief, the



misleading.

11. I am independent of the issuer applying all of the tests in Section 1.5 of NI 43-101.

12. I have read NI 43-101 and Form 43-101F1, and the Technical Report has been prepared in

compliance with that instrument and form.




March 29, 2018





Technical Report.

Dated this 29 day of March, 2018

“signed” Enrique D. Quiroga Vega _


Enrique D. Quiroga Vega





March 29, 2018



I, Gabriel E. Vera do hereby certify that:

1. I am currently employed as Metallurgical Process Consultant by GVMetallurgy of Camino

Lo Pinto s/n Parcela #182, Las Garzas II, Colina, Santiago, Chile

2. I hold the following academic qualifications:

Extractive Metallurgical Engineer Universidad Arturo Prat IQQ, 1989

3. I am a Qualify Person in Extractive Metallurgy Specialist of the Chilean “Comisión

Cerificadora en Recursos y Reservas Mineras", registered in the Public Registry of

Competent Persons from April 2015 under Nr. 0280 from the Chilean Mining

Commissioning.

4. I have worked in the minerals industry as an engineer continuously since 1986, a period of 32

years. I am a owner of EIRL GVMetallurgy, Process Consultant & Pilot Plant

Manufacturing since 2013, I have worked for Codelco Chile División Chuqicamata as a

Metallurgist of Leaching, Solvent Extraction & Electro Winning and Low Grade Sulfide

plants of Copper (1987-1994), I was employed for Compañia Minera Cerro Colorado ( Rio

Algom- BHPBilliton) as a senior Metallurgical Engineer leaching, SX, EW of copper (1994-

2002), I have worked for Cognis as a Technical Consultant of solvent Extraction (2002-

2005) for Codelco Chuquicamata, Minera El Tesoro, Minera El Abra clients, I have worked

for Altonorte Smelter & Lomas Bayas Leach, SX EW operation as a Senior Metallurgist in

Copper , Rhenium and Molybdenum hydrometallurgical process (Noranda Falconbridge-

Xstrata) ( 2005-2008), I was Hydrometallurgical Process Superintendent, Xstrata Copper

North of Chile Division and then Joint Venture Division Chile Argentina & Peru, (2008-

2013)

5. I have read the definition of “Qualified Person” (“QP”) set out in NI 43-101 and certify that

by reason of my education, affiliation with a professional association (as defined in NI 43-

101) and past relevant work experience, I fulfill the requirements to be a “Qualified Person”

for the purposes of NI 43-101.

6. I am the qualified person responsible for Sections 13 of the technical report titled “Minera

Tres Valles Copper Project – Salamanca, Coquimbo Region, Chile - NI 43-101F1 Technical

Report –Mineral Resource Estimate, Chloride Leach Processing, and Don Gabriel Manto Pit

Expansion” (the “Technical Report”), dated March 29, 2018, prepared for Sprott Resource

Holdings Inc.

7. My prior involvement with the property includes work with a Oryxieo Consultants for

studies about acid leaching and chlorine media leaching of ore from Papomono & Don

Gabriel mines January 2017.

8. I last visited the MTV site on March 23, 2018.




March 29, 2018


9. As of the date of this certificate, to the best of my knowledge, information and belief, the



misleading.

10. I am independent of the issuer applying all of the tests in Section 1.5 of NI 43-101.

11. I have read NI 43-101 and Form 43-101F1, and the Technical Report has been prepared in

compliance with that instrument and form.




Technical Report.

Dated this 29day of March, 2018

“signed” Gabriel E. Vera__________


Gabriel E. Vera _________ _





March 29, 2018


Appendix B. Mining Claims




March 29, 2018


MINERAL CONCESSIONS - FULLY CONSTITUED AND REGISTERED

ID CONCESSION SIZE

NUMBER CONCESSION NAME CONCESSION TYPE CONCESSION STATUS HAS.

1 043011021-7 ACUERDO 1/10 EXPLOTACIÓN CONSTITUIDA 50

2 043021325-3 ALEJANDRA 1 AL 11 EXPLOTACIÓN CONSTITUIDA 53.00007

3 043021031-9 BARTOLOME 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

4 043020997-3 BERTA 1 AL 60 EXPLOTACIÓN CONSTITUIDA 276.0001

5 04302-1363-6 BLANQUITA 1 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300

6 04302-1370-9 BLANQUITA 10 DEL 1 94 EXPLOTACIÓN CONSTITUIDA 94.0001



9 04302-1361-k BLANQUITA 2 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300



12 043021365-2 BLANQUITA 6 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 100




16 043020155-7 CALIFORNIA 1/30 EXPLOTACIÓN CONSTITUIDA 40

17 043020998-1 CANDELARIA 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

18 04301-1713-0 CANELA 21 DEL 1 AL 200 EXPLOTACIÓN CONSTITUIDA 200


20 04301-1718-1 CANELA 34 DEL 1 AL 294 EXPLOTACIÓN CONSTITUIDA 294.0001

21 04301-1719-K CANELA 35 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300







28 04302-1356-3 CANELA 54 DEL 1 AL 58 EXPLOTACIÓN CONSTITUIDA 58.00019




32 04301-2060-3 CANELA B 11 DEL 1 AL 27 EXPLOTACIÓN CONSTITUIDA 204.0001

33 04301-2061-1 CANELA B 12 DEL 1 AL 22 EXPLOTACIÓN CONSTITUIDA 191

34 04301-2062-K CANELA B 13 DEL 1 AL 10 EXPLOTACIÓN CONSTITUIDA 100





March 29, 2018


ID CONCESSION SIZE







41 043012075-1 CANELA B 29 DEL 1 AL 30 EXPLOTACIÓN CONSTITUIDA 300


43 043012076-K CANELA B 30 DEL 1 AL 30 EXPLOTACIÓN CONSTITUIDA 300






49 04301-1722-K CAREN 11 DEL 1 AL 236 EXPLOTACIÓN CONSTITUIDA 236.0001

50 04301-1723-8 CAREN 12 DEL 1 AL 100 EXPLOTACIÓN CONSTITUIDA 100




54 043012010-7 CARENCITA 5 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300

55 04302-0110-7 CARIDAD EXPLOTACIÓN CONSTITUIDA 5.000121

56 043020999-K CARLOS 1 AL 34 EXPLOTACIÓN CONSTITUIDA 96.00014

57 043021001-7 CHRISTHOFER 1 AL 40 EXPLOTACIÓN CONSTITUIDA 200

58 043021034-3 CHRISTIANE DOS 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

59 043021035-1 CHRISTIANE TRES 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

60 043021033-5 CHRISTIANE UNO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 290

61 043020953-1 CLEMENCIA 1/13 EXPLOTACIÓN CONSTITUIDA 13.00007

62 043021037-8 CLEMENTE DOS 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

63 043021038-6 CLEMENTE TRES 1 AL 50 EXPLOTACIÓN CONSTITUIDA 248.0002

64 043021036-K CLEMENTE UNO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

65 043021552-3 COCHI LEUFU 24 DEL 1 AL 6 EXPLOTACIÓN CONSTITUIDA 6.000145

66 043020107-7 CONSUELO EXPLOTACIÓN CONSTITUIDA 5.000121

67 043021003-3 CRISTOBAL 1 AL 60 EXPLOTACIÓN CONSTITUIDA 285.0001

68 043020986-8 CRUZ DEL SUR 1 AL 60 EXPLOTACIÓN CONSTITUIDA 280

69 043021199-4 CYPRUS 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

70 043021004-1 DAVID 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300




March 29, 2018


ID CONCESSION SIZE


71 04302-0889-6 DON CHURRUS 1, 1/30 EXPLOTACIÓN CONSTITUIDA 260

72 04302-0898-5 DON CHURRUS 10, 1/30 EXPLOTACIÓN CONSTITUIDA 199.0002





77 04302-0890-K DON CHURRUS 2, 1/30 EXPLOTACIÓN CONSTITUIDA 272








85 043020197-2 DON GABRIEL 1/20 (1/5) EXPLOTACIÓN CONSTITUIDA 25.00012

86 043020533-1 EL ROSARIO 1/16 (1/7) EXPLOTACIÓN CONSTITUIDA 35.00012

87 043020113-1 EL ROSARIO 1/16 (8/16) EXPLOTACIÓN CONSTITUIDA 45.00012

88 043020987-6 EL SEÑOR DE LA TIERRA 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

89 043021531-0 ELIAS 1 AL 300 EXPLOTACIÓN CONSTITUIDA 146

90 043021201-K ELISEO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

91 043010273-7 EMMANUEL 1/50 (16,17,24 al 27 y 34 al 37) EXPLOTACIÓN CONSTITUIDA 50

92 043020109-3 ESPERANZA EXPLOTACIÓN CONSTITUIDA 5.000121

93 043021005-K EUGENIA 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

94 043020108-5 FE EXPLOTACIÓN CONSTITUIDA 5.000121

95 043020988-4 FERNANDA 1 AL 57 EXPLOTACIÓN CONSTITUIDA 267.0002

96 04302-1007-6 GABRIEL 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

97 043021040-8 GLADYS DOS 1 AL 40 EXPLOTACIÓN CONSTITUIDA 200

98 043021041-6 GLADYS TRES A 1 AL 10 EXPLOTACIÓN CONSTITUIDA 50

99 043021084-K GLADYS UNO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 270

100 043020990-6 GUADALUPE DOS 1 AL 60 EXPLOTACIÓN CONSTITUIDA 294.0001

101 043020989-2 GUADALUPE UNO 1 AL 39 EXPLOTACIÓN CONSTITUIDA 168.0002

102 043021202-8 HONORIO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 174.0001

103 043021009-2 IGNACIA 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

104 043021010-6 IGNACIO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300




March 29, 2018


ID CONCESSION SIZE


105 043021011-4 ISABEL 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

106 043021012-2 ISIDRO 1 AL 59 EXPLOTACIÓN CONSTITUIDA 287.0002

107 043021013-0 JACINTA 1 AL 6 EXPLOTACIÓN CONSTITUIDA 18.00019

108 043021105-6 JACINTA DOS 1 AL 4 EXPLOTACIÓN CONSTITUIDA 8.000193

109 043021043-2 JAVIER 1 AL 53 EXPLOTACIÓN CONSTITUIDA 265.0001

110 043021014-9 JERONIMO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

111 04302-1015-7 JORGE 1 AL 60 EXPLOTACIÓN CONSTITUIDA 267.0002

112 043021016-5 JOSE 1 AL 60 EXPLOTACIÓN CONSTITUIDA 270

113 043020991-4 JUAN DIEGO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

114 043021046-7 JUAN DOS 1 AL 60 EXPLOTACIÓN CONSTITUIDA 294.0001

115 043021047-5 JUAN TRES 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

116 043021044-0 JUAN UNO A, 1 AL 20 EXPLOTACIÓN CONSTITUIDA 81.00002

117 043021045-9 JUAN UNO B, 1 AL 35 EXPLOTACIÓN CONSTITUIDA 156.0001

118 043021017-3 JUANA 1 AL 57 EXPLOTACIÓN CONSTITUIDA 270

119 043020208-1 LA DESPRECIADA 1 al 4 EXPLOTACIÓN CONSTITUIDA 20

120 043020239-1 LA PALOMA 1/10 EXPLOTACIÓN CONSTITUIDA 48.00019

121 04302-1253-2 LEUFU COCHI 11 DEL 1 AL 100 EXPLOTACIÓN CONSTITUIDA 100




125 04302-1257-5 LEUFU COCHI 21 DEL 1 AL 179 EXPLOTACIÓN CONSTITUIDA 179.0002


127 04301-1573-1 LOS MAQUIS 18 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300

128 04301-1574-K LOS MAQUIS 20 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300















March 29, 2018


ID CONCESSION SIZE


140 043021018-1 LUIS 1 AL 60 EXPLOTACIÓN CONSTITUIDA 278.0002

141 043021019-K LUISA 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

142 04302-1205-2 MALLACUN 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

143 043021048-3 MANUEL 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

144 04302-1405-5 MARCE CIENTO DIECISEIS 1 AL 40 EXPLOTACIÓN CONSTITUIDA 200

145 04302-1406-3 MARCE CIENTO DIECISIETE 1 AL 40 EXPLOTACIÓN CONSTITUIDA 194.0001

146 043021339-3 MARCE TREINTA Y CUATRO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

147 04302-1334-2 MARCE TREINTA Y DOS 1 AL 40 EXPLOTACIÓN CONSTITUIDA 189.0002

148 04302-1335-0 MARCE TREINTA Y TRES 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

149 043021284-2 MARGARITA 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

150 043021050-5 MARGARITA NIETA 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

151 043021022-K MARIA 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

152 043021023-8 MARTA 1 AL 20 EXPLOTACIÓN CONSTITUIDA 100

153 043021024-6 MAURO 1 AL 59 EXPLOTACIÓN CONSTITUIDA 295.0001

154 043021051-3 MIGUEL 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

155 043020992-2 NATALIA 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

156 043020381-9 NATALYA 1 AL 10 EXPLOTACIÓN CONSTITUIDA 50

157 04302-1533-7 ORÉGANO B 2 DEL 1 AL 30 EXPLOTACIÓN CONSTITUIDA 300

158 04302-1534-5 ORÉGANO B 3 DEL 1 AL 10 EXPLOTACIÓN CONSTITUIDA 19

159 04302-1535-3 ORÉGANO B 4 DEL 1 AL 30(29) EXPLOTACIÓN CONSTITUIDA 222

160 04302-1536-1 ORÉGANO B 5 DEL 1 AL 30(25) EXPLOTACIÓN CONSTITUIDA 207

161 04302-1537-k ORÉGANO B 6 DEL 1 AL 20(3) EXPLOTACIÓN CONSTITUIDA 18

162 043021437-3 OREGANO 91 DEL 1 AL 167 EXPLOTACIÓN CONSTITUIDA 167.0002

163 04302-1206-0 OSEAS 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

164 043021025-4 PEDRO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

165 04302-1207-9 POLICARPO 1 AL 40 EXPLOTACIÓN CONSTITUIDA 197.0002

166 043020460-2 PRISCILA 2/4 EXPLOTACIÓN CONSTITUIDA 12.00005

167 04302-1470-5 QUILMENCO 1 DEL 1 AL 150 EXPLOTACIÓN CONSTITUIDA 150

168 04302-1474-8 QUILMENCO 2 DEL 1 AL 86 EXPLOTACIÓN CONSTITUIDA 86.00014

169 04302-1472-1 QUILMENCO 3 DEL 1 AL 200 EXPLOTACIÓN CONSTITUIDA 200

170 043021054-8 RAFAEL 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

171 043021055-6 ROSA 1, 1 AL 30 EXPLOTACIÓN CONSTITUIDA 127.0002

172 043021026-2 SANTIAGO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

173 043021057-2 SEBASTIAN 1, 1 AL 60 EXPLOTACIÓN CONSTITUIDA 240




March 29, 2018


ID CONCESSION SIZE


174 043021058-0 SEBASTIAN 2, 1 AL 18 EXPLOTACIÓN CONSTITUIDA 74.0001

175 043021059-9 SEBASTIAN TRES, 1 AL 60 EXPLOTACIÓN CONSTITUIDA 265.0001

176 043021027-0 SEGISMUNDO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 292

177 043020993-0 SEÑOR DE LOS CIELOS 1 AL 20 EXPLOTACIÓN CONSTITUIDA 100

178 043020516-1 TABITA UNO AL TRES EXPLOTACIÓN CONSTITUIDA 12.00005

179 043021061-0 TALHUEN DOS 1 AL 60 EXPLOTACIÓN CONSTITUIDA 298.0002

180 043021062-9 TALHUEN TRES 1 AL 60 EXPLOTACIÓN CONSTITUIDA 280

181 043021060-2 TALHUEN UNO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

182 043021028-9 VICENTE 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

183 04302-1208-7 ZACARIAS 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

184 043011800-5 SALAMANCA 1 1/12 EXPLOTACIÓN CONSTITUIDA 52




188 043011806-4 SALAMANCA 10A 1/100 EXPLOTACIÓN CONSTITUIDA 100

189 043011807-2 SALAMANCA 10B 1/135 EXPLOTACIÓN CONSTITUIDA 135





194 043011810-2 SALAMANCA 24A 1/80 EXPLOTACIÓN CONSTITUIDA 80







201 043011544-8 HERMINIA 1/14 EXPLOTACIÓN CONSTITUIDA 93

202 043011257-0 LA POR LLEGAR 1/10 EXPLOTACIÓN CONSTITUIDA 50

203 S/R LAS BANDURRIAS 4 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300






209 S/R CANELA C1 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300










March 29, 2018


ID CONCESSION SIZE


1 043021424-1 OREGANO 90 DEL 1 AL 300 EXPLOTACIÓN DESARCHIVAR Y REVISAR 10

2 04302-1532-9 ORÉGANO B 1 DEL 1 AL 30 (31) EXPLOTACIÓN CONSTITUIDA 283

3 043011912-5 OREGANO B 68 DEL 1/11 EXPLOTACIÓN RENUNCIA RECURSO SUPERPOSICIÓN 11



6 043021456-K OREGANO B 71 DEL 1/98 EXPLOTACIÓN RENUNCIA RECURSO SUPERPOSICIÓN 98



9 S/R LAS BANDURRIAS 1 1 AL 60 EXPLOTACIÓN APROBADA, ESPERA SENTENCIA 300



12 S/R CANELA C11 1 AL 20 EXPLOTACIÓN APROBADA, ESPERA SENTENCIA 100

13 S/R MARGARA EXPLORACIÓN APROBACIÓN SERNAGEOMIN 300

14 S/R DON CHURRUS 10A 1/210 EXPLOTACIÓN EJECUTAR MENSURA 210

MINERAL CONCESSIONS IN ADMINISTRATIVE PROCESS

Explanation of Concession Status:

Constituida - Fully constituted and registered.

Aprobada, Espera Sentencia – Approved, awaiting judgement

Ejecutar Mensura – Awaiting survey

Renuncia Recurso Superposicion – Waver resource of overlay

Aprobacion Sernageomin – Sernageomin approval

Desarchivar y Revisar – Unarchive and Review

minera tres valles copper project - Mining Data Online

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