GalenoReport PDF

Lumina Copper Corporation
El Galeno
Technical Report
Cajamarca Department, Peru
Prepared for:
Lumina Copper Corporation
By:
Diane Nicolson, Ph.D., MAIG
Effective date:
30 May 2003
U954C
Distribution List:
02 June 2003
Client: 5 copies
AMEC: 2 copies
IMPORTANT NOTICE
This report was prepared exclusively for Lumina Copper Corporation

(Lumina) by AMEC (Perú) S.A. a subsidiary of AMEC E&C Services
Limited (AMEC). The quality of information, conclusions and estimates
contained herein is consistent with the level of effort involved in
AMEC’s services and based on: i) information available at the time of
preparation, ii) data supplied by outside sources and iii) the
assumptions, conditions and qualifications set forth in this report. This
report is intended to be used by Lumina only, subject to the terms and
conditions of its contract with AMEC. Any other use of, or reliance on
this report by any third party is at that party’s sole risk.
LUMINA COPPER CORPORATION
TECHNICAL REPORT
CONTENTS
1.0 SUMMARY ................................................................................................................................... 1-1

2.0 INTRODUCTION AND TERMS OF REFERENCE ...................................................................... 2-1
2.1 Terms of Reference......................................................................................................... 2-2
3.0 DISCLAIMER................................................................................................................................ 3-1
4.0 PROPERTY DESCRIPTION AND LOCATION ............................................................................ 4-1
4.1 Location ........................................................................................................................... 4-1
4.2 Land Tenure .................................................................................................................... 4-1
4.3 Terms of the Agreement.................................................................................................. 4-4
4.4 Environmental and Socio-Economic Issues .................................................................... 4-5
4.5 Property and Title in Peru................................................................................................ 4-6
4.6 Environmental Regulations.............................................................................................. 4-7
5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE
AND PHYSIOGRAPHY ................................................................................................................ 5-1
5.1 Accessibility ..................................................................................................................... 5-1
5.2 Climate............................................................................................................................. 5-1
5.3 Local Resources and Infrastructure ................................................................................ 5-3
5.4 Physiography................................................................................................................... 5-5
5.5 An Overview of Peru........................................................................................................ 5-5
6.0 HISTORY...................................................................................................................................... 6-1
7.0 GEOLOGICAL SETTING ............................................................................................................. 7-1
7.1 Regional Geology ............................................................................................................ 7-1
7.2 Property Geology............................................................................................................. 7-1
8.0 DEPOSIT TYPES ......................................................................................................................... 8-1
9.0 MINERALIZATION ....................................................................................................................... 9-1
9.1 Generalities of the Cu Porphyry System ......................................................................... 9-1
9.2 Early Low Grade Hypogene Cu Mineralization ............................................................... 9-7
9.3 Late Cu Enrichment Event............................................................................................... 9-8
9.4 Leaching and Oxidation................................................................................................... 9-9
9.5 Breccia-hosted Au Mineralization .................................................................................... 9-9
10.0 EXPLORATION .......................................................................................................................... 10-1
10.1 Newmont Exploration Activities ..................................................................................... 10-1
10.2 North Exploration Activities............................................................................................ 10-2
10.3 Exploration Potential...................................................................................................... 10-5
11.0 DRILLING ................................................................................................................................... 11-1
El Galeno Technical Report

Project No. U954C TOC i
May 2003
TECHNICAL REPORT
12.0 SAMPLING METHODS .............................................................................................................. 12-1

13.0 SAMPLE PREPARATION, ANALYSES AND SECURITY ......................................................... 13-1
14.0 DATA VERIFICATION................................................................................................................ 14-1
15.0 ADJACENT PROPERTIES ........................................................................................................ 15-1
16.0 MINERAL PROCESSING AND METALLURGICAL TESTING .................................................. 16-1
17.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES............................................. 17-1
17.1 Inverse Distance Squared Estimate (North 1998)......................................................... 17-1
17.2 Ordinary Kriging Resource Estimate (North 1998)........................................................ 17-2
18.0 OTHER RELEVANT DATA AND INFORMATION ..................................................................... 18-1
19.0 REQUIREMENTS FOR TECHNICAL REPORTS ON PRODUCTION
AND DEVELOPMENT PROPERTIES ....................................................................................... 19-1
20.0 CONCLUSIONS AND RECOMMENDATIONS .......................................................................... 20-1
20.1 Conclusions ................................................................................................................... 20-1
20.2 Recommendations......................................................................................................... 20-5
21.0 REFERENCES ........................................................................................................................... 21-1
T ABLE S
Table 4-1: Mineral Concessions Forming the El Galeno Property ........................................................ 4-1
Table 4-2: Schedule of Payments ......................................................................................................... 4-4
Table 4-3: Copper Price Ranges and Related Payment Discounts ...................................................... 4-5
Table 4-4: Summary of Environmental Requirements for Mining Exploration Programs...................... 4-8
Table 5-1: Access to the El Galeno Property ........................................................................................ 5-1
Table 5-2: Summary of the Main Base Metal Mines in Peru ............................................................... 5-12
Table 14-1: AMEC Drillcore, Pulp and Outcrop Sampling (May 2003) ................................................. 14-5
Table 14-2: AMEC Analytical Results Compared to North Analytical
Results Over the Same Interval ......................................................................................... 14-7
Table 14-3: Diagnostic Leach Analysis on Four Composite Reverse
Circulation Samples (See, 1998)........................................................................................ 14-8
Table 16-1: Metallurgical Sample Description ....................................................................................... 16-1
Table 16-2: Mineralogy of the Metallurgic Samples .............................................................................. 16-1
Table 16-3: Head Assays for the Metallurgical Samples....................................................................... 16-2
Table 20-1: Budget for Recommended Work Program ......................................................................... 20-6
Table 20-2: Follow-up Work Program.................................................................................................... 20-6

Project No. U954C TOC ii
May 2003
TECHNICAL REPORT
FIGURES
Figure 4-1: El Galeno Location Map ....................................................................................................... 4-2

Figure 4-2: El Galeno Property ............................................................................................................... 4-3
Figure 5-1: El Galeno Location Map with Topography ........................................................................... 5-2
Figure 5-2: Topography and Drillhole Locations..................................................................................... 5-4
Figure 6-1: Site Layout Plan (April 1998)................................................................................................ 6-3
Figure 7-1: Regional Geology Map......................................................................................................... 7-2
Figure 7-2: Location of Main Mineralization Types ................................................................................. 7-4
Figure 9-1: Alteration Zones Associated with El Galeno Porphyry......................................................... 9-2
1
Figure 9-2: Cross Section A-A (Cross Section Trace Given on Figure 9-4) ......................................... 9-3
Figure 9-3: Cross Section B-B1 (Cross Section Trace Given on Figure 9-4)......................................... 9-4
Figure 9-4: Higher Grade Cu Zones for the Porphyry ............................................................................ 9-5
Figure 10-1: Analytical Signal from Heli-Mag Total Field Data with Drilling
Locations and the Enriched Copper Zones........................................................................ 10-4
Figure 12-1: Comparison of the Cu grades in twin drillholes RCD-GN-08 and DDH-GN-46 ................. 12-2
Figure 12-2: Comparison of the Cu grades in twin drillholes RCD-GN-28 and DDH-GN-45 ................. 12-2
Figure 20-1: Drill Plan ............................................................................................................................. 20-4
APPENDICES
A – AMEC Independent Samples

B – Drillhole Location, Dip, Azimuth and Depth Data
C – Geophysics – Chargeability and Resistivity Profiles
D – Photographs

Project No. U954C TOC iii
May 2003
TECHNICAL REPORT
1.0 SUMMARY
Lumina Copper Corporation (Lumina) commissioned AMEC (Peru) S.A. (AMEC) to provide
an independent Qualified Person’s Review and Technical Report on the El Galeno Copper-
Gold Property. Diane Nicolson, Ph. D., MAIG, a member of the Australian Institute of
Geoscientists, and an associate of AMEC served as the Qualified Person responsible for
the preparation of the Technical Report as defined in National Instrument 43-101,
Standards of Disclosure for Mineral Projects and in compliance with Form 43-101F1 (the
Technical Report).
The scope of work entailed review of pertinent geological and metallurgical data in
sufficient detail to prepare the Technical Report. The metallurgical data were briefly
reviewed by AMEC process engineer Lynton Gormely, P.Eng., and the geophysics by
technical expert Rhiannon Morris.
The El Galeno Property is located 600 km by road north of Lima, in the Department of
Cajamarca. The Property comprises four mining concessions that cover a total surface
area of 1,347.5 ha and which are centred on the El Galeno porphyry Cu-Au-Mo deposit.
Access to the Property from the town of Cajamarca is by dirt road and the driving time is
approximately 2.5 hours.
The four mining concessions, which make up the El Galeno Property, are currently
registered under the name of Asuncion Negociacion Minera S.A. (ASUMIN). Lumina,
through their wholly owned subsidiary, CRS Copper Resources Corp. (CRS) has the
option agreement with ASUMIN, to obtain a 100% interest in the property by making
staged cash and/or share payments to ASUMIN totalling US $2.0 million.
Copper mineralization was first recognized on the El Galeno Property in 1993.

Subsequently the Property has undergone a number of exploration campaigns by
Newmont and North. Twenty-one diamond drillholes and thirty reverse circulation
drillholes for a total of 13,145.85 m have been completed on the Property. This drilling,
along with surface trenching and sampling, magnetic and induced polarization geophysical
surveys have assisted in the delineation of the El Galeno Cu-Au-Mo porphyry. Hypogene
and enriched, copper porphyry mineralization at El Galeno is hosted by both lower
Cretaceous sediments and dacitic intrusives. Low-grade hypogene mineralization is
associated with the potassic and to a lesser extent with the phyllic alteration while the
enriched mineralization, which consists of covellite and chalcocite, occurs more closely
associated with the phyllic alteration. The overlying leach cap and oxide zone are poorly
represented and are often absent.

Project No. U954C Page 1-1
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TECHNICAL REPORT
North completed two mineral resource estimates on the porphyry mineralization at El

Galeno, both of which are considered to be historical estimates. The first estimate was
very preliminary in nature based on thirty-eight drillholes, and was done using a block
model and the inverse distance squared interpolation method. The second estimate
incorporated forty-six drillholes, and used an Ordinary Kriging interpolation method, which
treated copper and gold grades separately. AMEC did not audit or re-estimate the mineral
resource. In AMEC’s opinion the Historical Inferred Mineral Resource Estimate calculated
by North (Webster, 1998b) using the Ordinary Kriging method may be quoted as 486 Mt at
0.57% Cu and 0.14g/t Au, at a cut-off grade of 0.4% Cu. No Mineral Resources or Mineral
Reserves, as defined by NI 43-101 or CIM definitions, have been estimated at El Galeno.
Using the first historical resource estimate as a base, North completed an in-house
Conceptual Study of the El Galeno deposit, prior to the completing the final drill program.
The study assumed that all the copper existed as sulphide and that it was suitable for heap
leach or the production of a higher-grade flotation concentrate. The possibility of mining
the deposit by open pit methods was addressed.
North also completed a preliminary metallurgical study. Direct acid leaching with sulphuric
acid was found not to be feasible. A concentrate leach option considered two options, the
Intec and the CESL processes, both of which at the time were not fully commercialized.
According to the Conceptual Study, only the untested Intec Method was financially viable
(Webster, 1998a).
After the completion of additional diamond drilling and the second resource estimate (using
the Ordinary Kriging method), the conceptual study was updated by North (Webster,
1998b). A high grade zone (grading >1% Cu) that was defined by the drilling was
evaluated as a starter pit, however it was determined that it would not meet North’s
minimum development criteria unless there were significant reductions in the capital costs.
North also concluded that the geology and mineralization in the El Galeno zone had not
been adequately defined by the drilling completed to date.
AMEC concludes the following:
• The level of understanding of both the geology and alteration at El Galeno is

reasonable, however, the understanding of the structural history and of the
mineralization needs to be improved
• The lack of documentation relating to both the reverse circulation and the diamond
drilling sampling methods and quality control-quality assurance programs in effect
could adversely impact future efforts to classify the resource

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TECHNICAL REPORT
• Discrepancies in the copper grade between one of the two reverse circulation drillholes
twinned with diamond drillholes should be addressed by additional twin holes
• The lack of documentation relating to the laboratories used, preparation and analytical
methods, quality control-quality assurance protocols and analytical certificates should
be addressed by obtaining documents from the laboratories, if possible
• The distribution of the soluble copper component is not known due to the lack of
sequential copper analyses
• The Central Zone mineralization could be up-graded to an Inferred Mineral Resource

acceptable under NI43-101 through a combination of verification re-sampling and/or re-
analyses, twinning of a number of reverse circulation drillholes with diamond drillholes,
and infill diamond drillholes so that that drilling grid is on a 200 m to 250 m spacing.
AMEC recommends a work program for the higher grade Central Zone of the El Galeno
porphyry deposit. The program has an approximate cost of US $300,000 and includes the
following:
• Re-sampling and/or re-analyses of selected intervals from the diamond drillholes drilled
into the Central Zone (the area of highest copper grade)
• Twinning of three of the reverse circulation drillholes in the Central Zone
• Additional metallurgical testing
• Re-logging all existing drill core
• Detail structural mapping over the main area
• Sampling, sample transportation, sample preparation and analyses should include a

rigorous quality control and quality assurance program
• Obtain remaining documentation on previous programs from laboratories used
• Analyses include sequential copper and residual copper analyses
• Complete a mineral resource estimate.
The program will result in a mineral resource estimate prepared in accordance with NI43-
101 and upon which Lumina may assess the merits of the Property. Metallurgical testwork
and sequential copper analyses will assist in determination of potential processing
alternatives.
Further work would be contingent upon satisfactory results from the initial program. AMEC
has defined a drilling program which will decrease hole spacing to establish a 200 m by

May 2003
TECHNICAL REPORT
200 m grid on the Central Zone. The approximate cost of the infill program is US $580,000
and should be accompanied by pre-feasibility or feasibility studies as appropriate.
If there are significant discrepancies in the copper grade between the reverse circulation
holes and their diamond drillhole twins (in the initial work program), then the remaining
reverse circulation drillholes should also be twinned with diamond drillholes.
AMEC recommends that the initial US $300,000 work program should be completed at this
time.

May 2003
TECHNICAL REPORT
2.0 INTRODUCTION AND TERMS OF REFERENCE
Lumina commissioned AMEC to provide an independent Qualified Person’s Review and

Technical Report of the El Galeno Copper-Gold Property (the Property). Diane Nicolson,
Ph.D., MAIG an associate of AMEC served as the Qualified Person responsible for the
preparation of the Technical Report as defined in National Instrument 43-101, Standards of
Disclosure for Mineral Projects, and in compliance with Form 43-101F1 (the Technical
Report). Dr. Nicolson has more than 15 years of experience in the mining industry,
including substantial experience in precious and base metal exploration.
The Property consists of four mining concessions, which together cover a total area of
1,347.5 ha. The Property is located approximately 600 km north of Lima and 150 km
northeast of the coastal city of Trujillo (350 km by road), in the Cajamarca Department in
northern Peru.
Porphyry style copper and gold mineralization was discovered at El Galeno in the late
1960s and exploration has continued on an intermittent basis until 2000. To date,
13,145.85 m of core and reverse circulation drilling by two exploration companies has
identified porphyry style mineralization. The alteration system associated with the
mineralization covers a 1.8 km x 1 km area. The porphyry deposit is at a moderately
advanced stage of exploration. The property also has breccia-hosted gold mineralization,
which occurs east of the porphyry deposit, and is at an early to moderate stage of
exploration.
Lumina, through its wholly owned subsidiary CRS Copper Resource Corp. (CRS), has an
option to earn a 100% interest in the Property. The CRS option agreement regarding the
El Galeno Property was signed with Asuncion Negociacion Minera S.A. (ASUMIN), a
private Peruvian company, on 25 April, 2003 and involves a series of staged cash
payments and/or share payments which total US $2.0 million. An additional US $1.8
million in staged payments is to be paid to ASUMIN upon completion of a feasibility study
(US $250,000), when the construction of a new mine commences (US $250,000) and one
year after commercial production has commenced (US $1.3 million).
Information and data for AMEC’s review and report were obtained from Lumina and Miguel
Cardozo, ASUMIN’s representative in Lima. Dr. Nicolson, completed a two-day site visit
between the 3rd and 4th of May 2003 and during this time visited all of the main prospect
areas of the Property. Dr. Nicolson also visited a warehouse in Cajamarca where most of
the previously drilled core is stored.

May 2003
TECHNICAL REPORT
The work completed by AMEC entailed a review of pertinent geological data in sufficient
detail to prepare the Technical Report. Diane Nicolson completed the site visit and
prepared the report. The metallurgical data were briefly reviewed by AMEC process
engineer Lynton Gormely, P.Eng., and the geophysics information by technical expert
Rhiannon Morris. Robert Cinits, P.Geo. supervised the preparation of the Technical
Report. Harry Parker and Doug Reddy provided advice on the review and quote of the
resource estimate. Doug Reddy, P.Geo., completed the peer review.
2.1 Terms of Reference
AMEC is not an associate or affiliate of Lumina, or of any associated company. AMEC’s

fee for this technical report is not dependent in whole or in part on any prior or future
engagement or understanding resulting from the conclusions of this report. This fee is in
accordance with standard industry fees for work of this nature, and AMEC’s previously
provided estimate is based solely on the approximate time needed to assess the various
data and reach the appropriate conclusions.
In preparing this report, AMEC relied on geological reports and maps, miscellaneous
technical papers listed in the References section at the conclusion of this report and
AMEC’s experience in Peru. In addition, during AMEC’s recent site visit, selected portions
of the exploration targets described in this report were visited and reviewed, and
independent confirmatory samples of archived drill core were collected. AMEC
independently collected a total of fifteen samples and submitted them to ALS-Chemex
Laboratories in Lima for preparation and analyses.
This report is based on information known to AMEC as of 30th May 2003.
All measurement units used in this report are metric, and currency is expressed in US
dollars unless stated otherwise. The currency used in Peru is the Peruvian Nuevo Sol.
The exchange rate as of 30 May 2003 is US $1.00, equal to approximately 3.5 Nuevos
Soles.

May 2003
TECHNICAL REPORT
3.0 DISCLAIMER
AMEC has not reviewed the land tenure, nor independently verified the legal status or
ownership of the properties or underlying option and/or joint venture agreements. The
results and opinions expressed in this report are based on AMEC’s field observations and
the geological and technical data listed in the References. While AMEC has carefully
reviewed all of the information provided by Lumina, and believes the information to be
reliable, AMEC has not conducted an in-depth independent investigation to verify its
accuracy and completeness.
The results and opinions expressed in this report are conditional upon the aforementioned
geological and legal information being current, accurate and complete as of the date of this
report, and the understanding that no information has been withheld that would affect the
conclusions made herein. AMEC reserves the right, but will not be obliged, to revise this
report and conclusions if additional information becomes known to AMEC subsequent to
the date of this report. AMEC does not assume responsibility for Lumina’s actions in
distributing this report.

May 2003
TECHNICAL REPORT
4.0 PROPERTY DESCRIPTION AND LOCATION
4.1 Location
The El Galeno Property is located approximately 600 km north of Lima and 150 km
northeast of the coastal city of Trujillo (350 km by road), in northern Peru (see Figure 4-1).
Politically, it is in the Department of Cajamarca, within the District of La Encañada and
straddles the boundary between the Provinces of Cajamarca and Celedin.
4.2 Land Tenure
The property comprises four mining concessions, which cover a total surface area of
1,347.5 ha (see Table 4-1), and are centred at the approximate UTM co-ordinates of
796,000 E, 9,228,000 N (UTM Zone PSAD 56 17S; 78°19’16.58’’ W longitude, 6°58’35.38’’
S latitude; Figure 4-2 and Table 4-1). An additional claim called ‘’El Galeno II”, which was
originally included in the property position, has been contested before the Peruvian
judiciary. It is unclear at present whether this claim will eventually be included in the list of
mining concessions that form the El Galeno Property.
AMEC relies on land tenure documentation supplied by Lumina and Lumina’s lawyers,
which indicates that other than the El Galeno II concession, the remaining four mining
concessions are currently in good standing but must be renewed by 30th June, 2003. An
independent verification of title was not part of the scope of this study.
Table 4-1: Mineral Concessions Forming the El Galeno Property

Type Name Ha** Code
Mining concession Galeno 11 500 010409795
Mining concession Galeno 10 500 010409995
Mining concession El Galeno 591 03002984X01
Mining concession El Galeno 1 275 03003250X01
Mining concession El Galeno II* 350 03003255X01
Note *: Has been contested before the Peruvian judiciary
** Concessions are overlapping and cover a smaller area than the sum of individual concessions

May 2003
TECHNICAL REPORT
4.3 Terms of the Agreement
The four mining concessions, which make up the El Galeno Property, are currently
registered under the name of Asuncion Negociacion Minera S.A. (ASUMIN). On April 25,
2003 Lumina, through its wholly owned subsidiary, CRS Copper Resources Corp. (CRS)
entered into an agreement with ASUMIN, that will grant CRS the option to obtain a 100%
interest in the property by making staged cash and/or share payments which total US $2.0
million. The terms of the agreement as supplied by Lumina are summarized as follows:
CRS may purchase the property for cash payments totalling US $2.0 million.
According to the schedule given in Table 4-2:
Table 4-2: Schedule of Payments

Period Amount
On signing US $10K
3 months US $20K
6 months US $50K
12 months US $100K
24 months US $300K
36 months US $400K
48 months US $1,120K
Total US $2,000K
The payment scheduled for the 48th month may be delayed for up to three years if
payments of a US $100K each are made at each of the 48th, 60th and 72nd months.
US $50K of each of the US $100K payments is to be considered as an annual advance
payment against the US $1,120K due. The remaining US $50K of each US $100K
payment is to be taken as an annual penalty payment. For example, if the payment at
month 48 is deferred in all three years, the payment will be due in month 84 in the
amount of US $970K. The only factor that may impact the US $970K payment relates
to the prevailing copper prices (see below).
CRS have no exploration commitments. All property maintenance costs are to be met
by CRS.
If CRS fails to make any of the option payments when due it will lose its interest in the
property. Alternatively, if CRS meets all the payments as outlined above, they will
have exercised their option to own a 100% interest in the property. However, CRS will
in this latter scenario remain compelled to make bonus payments as described below.

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TECHNICAL REPORT
Bonus payments are to be made to the owners by CRS under the following terms. A
US $250K payment is due on completion of a positive feasibility study. In this case a
“positive feasibility study” is defined as a study recommending commercial production
on which banks would be prepared to lend funds for construction. A further US $250K
payment is due when construction commences on a new mine on the property as
described in the feasibility study, and finally a US $1,300K payment is to be made one
year after commercial production has commenced at the property.
Payments starting in month 12 are to be subjected to reductions, if the average copper

prices (3 month London Metal Exchange average) move between the determined
ranges outlined in Table 4-3.
Table 4-3: Copper Price Ranges and Related Payment Discounts

Copper Price Copper Price Payments Reduced by
* = or < than 0.65 50%
* > 0.65 < 0.80 35%
* > 0.80 < 1.00 20%
* = or > 1.00 No discount
The first three option payments, and also 50% of the payment to be made at month 12
are to be in cash. Whereas the remaining 50% of the month 12 payment, in addition to
all the rest of the payments, may be made in CRS shares. This is provided that CRS
can guarantee ASUMIN that they will receive at least as much as the agreed cash
payment when the shares become freely tradable (4 months after issuance to
ASUMIN). If the shares trade at a value below the agreed cash payment, CRS are
obliged to pay the difference in cash to ASUMIN. If the shares are trading above the
agreed cash value, CRS will have no further obligation to ASUMIN in respect to
specific cash payments, and ASUMIN are to be entitled to retain the excess value.
4.4 Environmental and Socio-Economic Issues
The mineralized rocks in the El Galeno zone appear to have a natural acid-generating
component as evidenced from the low pH of the water in the lakes on the Property. In
addition, evidence of secondary Fe minerals can be seen to be precipitating around the
shore of the lakes (see Plate 4-1, Appendix D). It appears that this contamination is
natural and is related to surface outcrops of the mineralization. No other potential sources
of this contamination, such as small-scale mining, are evident.

May 2003
TECHNICAL REPORT
The Peruvian National Institute of Culture (INC) has not registered any archaeological site
on the El Galeno Property (White, 1998), nor did AMEC observe any obvious signs of
archaeological sites during the site visit.
The surface rights to the majority of the property are reportedly owned by Sr. Augusto
Villanueva, who resides in the village of Rodacocha, in the District La Encañada (Cordova
and Hoyos, 1999). The rest of the area apparently falls within surface land ownership
rights of the Chancas community.
During the site visit AMEC held a conversation with Sr. Luis Huaripata Chavez, who is the
‘El Fiscal’ or ‘President’ of the La Encañada community (within which the El Galeno
Property lies). Sr. Huaripata indicated that the majority of people in his community had a
positive attitude towards mining development at El Galeno. It is AMEC’s opinion that any
mining development at El Galeno would not just affect the La Encañada community but
also some surrounding communities, such as Sorochuca. The lack of suitable land for
tailings deposits and waste dumps on the Property and the rugged nature of the
countryside probably means that significant areas of local agricultural land would be
required for mine infrastructure.
The Michiquillay porphyry Cu ± Au deposit is located 7.5 km to the south. In the recent
past there was a community problem at Michiquillay, however, this has reportedly now
been resolved. The basis of the problem was a lack of communication between the
authorities and the community. There were also reported problems in the Minas Conga
area although the current state of the dispute is unknown.
4.5 Property and Title in Peru
The General Mining Law of Peru defines and regulates different categories of mining
activities, from sampling and prospecting to commercialization, exploitation, and
processing. Mining concessions are granted using UTM coordinates to define areas
generally ranging from 100 ha to 1,000 ha in size. Mining titles are irrevocable and
perpetual, as long as the titleholder maintains payment of the “Derecho Vigencia” fees up
to date (Ministerio de Energia y Minas, 1998). No royalties or other production-based
monetary obligations are imposed on holders of mining concessions; instead, a holder
must pay an annual maintenance fee of US $3/ha (for metallic mineral concessions) for
each concession actually acquired or for a pending application (petitorio) by 30 June of
each year. The concession holder must sustain a minimum level of annual commercial
production of greater than US $100/ha in gross sales within eight years of the grant of the
concession; or, if the concession has not been put into production within that period, the
annual rental increases to US $4.00/ha for the 9th through 14th years of the grant of the

May 2003
TECHNICAL REPORT
concession, and to US $10.00/ha thereafter. The concession will terminate if the annual
rental is not paid for three years in total or for two consecutive years. The term of a
concession is indefinite provided it is properly maintained by payment of rental fees.
The holder of a mining concession is entitled to all the protection available to all holders of
private property rights under the Peruvian Constitution, the Civil Code, and other
applicable laws. A Peruvian mining concession is a property-related right, distinct and
independent from the ownership of land on which it is located, even when both belong to
the same person. The rights granted by a mining concession are defensible against third
parties, are transferable and chargeable, and, in general, may be the subject of any
transaction or contract.
To be enforceable, any and all transactions and contracts pertaining to a mining

concession must be entered into a public deed and registered with the Public Mining
Registry. Conversely, the holder of a mining concession must develop and operate his/her
concession in a progressive manner, in compliance with applicable safety and
environmental regulations and with all necessary steps to avoid third-party damages. The
concession holder must permit access to those mining authorities responsible for
assessing that the concession holder is meeting all obligations.
4.6 Environmental Regulations
The General Mining Law of Peru is the primary body of law with regard to environmental
regulation. The General Mining Law is administered by the Ministry of Energy and Mines
(MEM). Generally, the MEM can require a mining company to prepare an Environmental
Evaluation (EA), an Environmental Impact Assessment (EIA), a Program for Environmental
Management and Adjustment (PAMA), and a Closure Plan. Mining companies are also
subject to annual environmental audits.
According to Peruvian regulations (S.D. 038-98-EM) the environmental requirements for

mining exploration programs are divided into classifications A, B, and C (Table 4-4).
Classification A is for general exploration activities and requires no authorization or fees.
Classification B includes drilling of less than 20 drillholes within a 10 ha area. An
application must be submitted and a fee of approximately US $50 must be paid.
Classification C pertains to mining exploration programs with more than 20 boreholes,

exploration areas greater than 10 ha, or construction of more than 50 m of tunnels.
Submission and acceptance of an EA (Evaluación Ambiental) is required for approval of
Classification C activities. The MEM has a period of 20 days to review and approve or
disapprove the EA; the EA is considered approved if the MEM does not respond within that
period.

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TECHNICAL REPORT
Table 4-4: Summary of Environmental Requirements for Mining Exploration Programs

Application Application Approval
Classification Description Requirements Fees Time
A Mineral exploration activities such as No authorization N/A N/A
geologic and geophysics studies, required
topographic surveys and collection
of small quantities of rocks and
minerals utilizing small portable
equipment
B Mineral exploration with less than 20 Required information as 5% of Unit Tax 20 days
drill hole perforations within a 10 ha shown in Art. 5 of Unit is ~US $1,000
area Environmental " Tax = US $50
Regulations for Mining
Exploration
C Mineral exploration with more than Prepare an 40% of Unit Tax 20 days
20 drill hole perforations and/or over Environmental Unit is ~US $1,000
a 10 ha area Evaluation (EA) report " Tax = US $400
as per Appendix 2 of
Environmental
Regulations for Mining
Exploration
A mining company that has completed its exploration stage must submit an EIA (Estudio
de Impacto Ambiental) when applying for a new mining or processing concession, to
increase the size of its existing processing operations by more than 50%, or to execute any
other mining project. The EIA must include plans for expenditures on an environmental
program representing no less than 1% of annual sales. The MEM must review and
approve/disapprove the EIA within 45 days of receiving the document; the EIA is
automatically approved if the MEM has not responded within that period.
The PAMA (Programa de Adecuación y Manejo Ambiental) must set forth the company’s
plan for compliance with the environmental laws and regulations, including its planned
mining works, investments, monitoring systems, waste management control, and site
restoration. Once a PAMA has been submitted, the MEM has 60 days in which to review
and approve the PAMA. The PAMA is considered approved if the MEM does not respond
during this 60-day period. If the MEM or an “interested party” can show just cause, the
PAMA may be modified during the first year.
A mining company must also prepare and submit a Closure Plan (Plan de Cierre) for each
component of its operation. The Closure Plan must outline what measures will be taken to
protect the environment over the short, medium and long term from solids, liquids and
gases generated by the mining work.

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TECHNICAL REPORT
The General Mining Law of Peru has in place a system of sanctions or financial penalties
that can be levied against a mining company not in compliance with the environmental
regulations.

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TECHNICAL REPORT
5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES,

INFRASTRUCTURE AND PHYSIOGRAPHY
5.1 Accessibility
Access to the Property is from the city of Cajamarca, which is located in north-western
Peru in the Cajamarca Department. Road access from Cajamarca to the El Galeno
Property is summarised in Table 5-1 (Figures 4-1 and Figure 5-1). The driving time for the
56 km distance is approximately 2.5 hours. The Cajamarca to Michiquillay portion of the
road is a heavily used dirt road, which also links Cajamarca to the provincial capital of
Celedin. This road is in a reasonable to poor state of repair, until the turn-off to the
Michiquillay copper deposit is reached. Beyond this point, the access road narrows, is less
heavily used, and is in a poor to moderate condition.
Table 5-1: Access to the El Galeno Property

Route Km Road Conditions
Cajamarca – Baños del Inca 6 km Asphalt road
Baños del Inca – La Encañada – Desvío Michiquillay 39 km Dirt road
Desvío Michiquillay – Mina Michiquillay – Desvío Punre – 11 km Minor dirt road
Laguna Milpo
An alternative dirt road exists that crosses the Rodacocha community, which reduces
travel time by half an hour as compared to the route via Michiquillay. This road is,
however, periodically closed.
Cajamarca has a commercial airport, which is serviced by daily flights from Lima.
5.2 Climate
The climate in the region is regarded as high-altitude temperate and has both a dry and
rainy season. Generally the winter months (or the ‘dry season’ are June to September)
have very little precipitation while the summer months (or the ‘wet season’ are October to
May) have consistent rains. The annual temperature range is 2 to 18ºC. Although
exploration can continue year round in this part of Peru, it is common to avoid conducting
field programs during the rainy season as the rains can hamper access.
The vegetative cover, which is interspersed between exposed bedrock over the Property
consists predominantly of ichu and other types of natural grasses suitable for livestock
grazing. Reeds are common along the lakeshores (White, 1998; see Plate 5-1 in,
Appendix D.

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TECHNICAL REPORT
The fauna at the Property includes mainly domestic livestock such as cattle, sheep, and
alpaca, as well as some wild animals such as foxes. No agricultural activity is carried out
on the property although people from the local community of La Encañada use the lower
slopes on the property for grazing their livestock. Agriculture is the main means of
subsistence for settlements immediately adjacent to the property in the both the Rinconada
Valley and the Kerosene Valley, where the main crops are potatoes, yucca, maize, onions
and beans (see Plate 5-2 in Appendix D, Figure 5-2).
5.3 Local Resources and Infrastructure
The Property contains very little developed infrastructure apart from the roads constructed
for drill rig access, and a semi-permanent exploration camp installed by North Limited
(North) during the late 1990’s, which comprises office, sleeping, warehouse and logging
facilities (see Plates 5-3 and 5-4 in Appendix D).
The condition of the dirt roads from Cajamarca to El Galeno is moderate to poor at best
with the roads frequently suffering blockages in the rainy season. Considerable new
development and upgrading of these roads would be required if the Project is developed.
Local water sources are currently inadequate to support any development as the main
rivers have minimal water flow during the dry season. Previous studies by North had
suggested damming the junction of the Rio Yanacocha and Rio Grande as a permanent
water source for the operation. This is also perceived to be of possible assistance to the
downstream local farming community, as it would provide a constant year round water
supply for agriculture (Webster, April 1998).
The closest power source to the property is probably at the village of La Encañada, and is
currently only sufficient to serve the requirements of the local communities (Figure 4-1). In
1999, North investigated the power requirements of a significant mining operation at El
Galeno and suggested that the current Peruvian Centre-North Interconnected Power
System did not have surplus power to support a mine and processing facility, and that a
substantial upgrade to the existing system would be needed. North also commented that
this problem could be rectified subsequent to a proposed up-grade of the power system in
2000. AMEC is not aware if these upgrades were completed.

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TECHNICAL REPORT
The city of Cajamarca is the closest major town and can provide basic goods, services and
accommodations for the early and advanced stages of project development and
operations, as it currently does for the Yanacocha Mine. Specialised services generally
have to be obtained from Lima, or possibly the coastal city of Trujillo. Local towns, such as
the District town of Encañada and the Provincial town of Celedin, that are located on the
main road connecting Cajamarca to the high jungle town of Chachapoyas, may provide
limited resources such as manual labour.
The closest port facility is at Pacasmayo, which is located approximately 220 km by road
west of the Property. A second port exists at Salaverry, 360 km by road southwest of the
property. Previous conceptual studies on the El Galeno property by North considered
using these two ports as a potential destination for a concentrate slurry pipeline.
5.4 Physiography
The topography of the Property is dominated by a glacial morphology. Elevation varies

from 3,000 to 4,000 masl. The principal glacial valley, the Rinconada Valley, trends
approximately north-south, has a broad, flat to undulating base. The base of the valley is
filled with fluvio-glacial material and hosts several lakes, which include Milpo, Rinconada
and Los Dos Colores (see Plate 5-5 in Appendix D include, Figure 5-2). Much of the base
of the valleys surrounding the lakes is water-logged and comprises marshland. The dryer,
slightly elevated areas comprise terminal moraines of limited areal extent.
The second main valley, the Kerosene Valley, is notably much less developed than the
Rinconada Valley and has a morphology more akin to that of a young river valley (“V”
shaped). Kerosene Valley has moderate to steep sides and lacks a broad base.
The center of the El Galeno mineralized system is located at the head of these two sub-
catchments. The Rinconada Valley corresponds to the Sendamal River, which is a
tributary of the Marañon River, and the Kerosene Valley corresponds to the Chonta River,
which eventually feeds the Cajamarca River and subsequently the Crisnejas River. Both
catchments have smaller surface water drainages or quebradas, which are shallow and
typical of the upper reaches of catchment zones.
5.5 An Overview of Peru
5.5.1 Introduction
The Republic of Peru is located along the central part of western South America, bordered
by the Pacific Ocean to the west, by Ecuador and Colombia to the north, by Brazil and
Bolivia to the east, and by Chile to the south (Figure 4-1). Peru has a landmass of

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approximately 1.3 million km2, which is just smaller than the state of Alaska. With a
population of roughly 27 million, it is slightly less populated than Canada.
During the 15th century, the Inca established by conquest a large, well-organized empire
that extended from modern-day Peru and Ecuador into parts of Colombia, Bolivia, Chile,
and Argentina. In 1532, a small band of Spanish adventurers arrived at the coast of
modern-day Peru, and within two years Spain had essentially conquered the Inca Empire.
Peru remained a Spanish colony until its independence as a republic in 1821.
5.5.2 Geography and Infrastructure
Peru’s topography varies from the desert of the western coastal plain (costa) to the central
rugged Andes Mountains (sierra) to the eastern lowland jungle (selva) of the Amazon
Basin. The climate varies from tropical in the east to a semi-arid to arid climate in the
west. The major rivers in Peru are the Ucayali, Marañon, and Napo, which drain into the
Amazon drainage basin.
The principal cities in Peru are Lima (country’s capital and chief commercial centre),
Arequipa (industrial centre), Trujillo (commercial centre), Chiclayo (in the sugar district),
Cusco (tourist area, Inca ruins), and Callao (seaport). Peru’s infrastructure, which links
most of the major urban centres, includes approximately 70,000 km of paved highways
and earth roads, 2,400 km of railroad, and more than 8,600 km of navigable tributaries
within the Amazon system. Leading Peruvian seaports include Callao, Matarani,
Salaverry, Pacasmayo, Paita, and San Juan. The country’s main international airports are
situated near Lima (Jorge Chavez International Airport), Cusco, Iquitos, and Arequipa.
5.5.3 Demography and Government
Approximately 45% of Peru’s inhabitants are of indigenous descent, many of whom are
descendants of the Inca. Some 37% of the country’s people are mestizos (persons of
mixed Spanish and Indian background), 15% are Caucasian, and 3% are of African origin.
The official language of government and commerce is Spanish, although native dialects
such as Quechua and Aymara are spoken by many Peruvian natives. Approximately 35%
of the working population is engaged in agriculture. The next largest sectors are services
industries and various forms of government. Mining and mine-related industry accounts for
approximately 5% of Peru’s workforce. About 40% of wageworkers belong to various
labour unions, of which the Confederación General de Trabajadores del Perú (CGTP) is
the largest.
Since independence in 1821, Peru has been governed by a succession of political rulers
including dictatorships, military juntas, and elected presidents. After a bloodless coup in

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TECHNICAL REPORT
1975, a new constitution was drafted in 1979 leading the way for democratic elections.
Peru is now a constitutional republic governed by a democratically elected government
with a president as head of state, two vice-presidents, and an elected Congress, all located
in the capital city of Lima. The current President is Alejandro Toledo, who has been in
power since July 2001.
The country is divided into 24 departments and one constitutional province (Callao, Port of
Lima). All of the departments are sub-divided into provinces and districts. The 1979
constitution had a mandate intended to create regions that would eventually function as
autonomous economic and administrative entities.
5.5.4 Business Investment Climate
The Peruvian economy has undergone radical changes since 1990. Its focus has become
increasingly market-oriented, and it has managed to present itself as one of the most
successful economies in the region. From a position of virtually no foreign reserves and
with annual inflation at over 7,500%, the country now boasts reserves of US $8.8 billion
and inflation of around 3.7% for the last two years.
In the previous 20 or so years, a strong protectionist policy, high import duties, and
government control prevailed in many economic areas, and the government’s refusal to
recognize its foreign debt resulted in Peru’s exclusion from the International Monetary
Fund (IMF) and the World Bank. An austerity program initiated by the Fujimori government
in 1990 greatly improved Peru’s financial outlook and created a much stronger level of
cooperation between Peru and the world’s financial organizations. The government
implemented IMF-dictated policies to control public spending and to manage the economy
prudently. This opened the door to an increase in foreign investment and a vastly
improved economic situation.
During the past few years Peru has gone through a period of political and economic
uncertainty as a result of weakening world economies (especially the “Asian crisis”) and
various political scandals, which led to the demise of the Fujimori government. GDP
growth, which averaged around 6% to 7% in the mid-90s, dropped to around 3% to 4%.
Over this period the mining and fisheries sectors were the prime industries that kept the
economy moving forward.
The government of President Alejandro Toledo has begun to address the challenge of
achieving economic recovery. Initial reaction to its proposals has been encouraging, and
negotiations with the IMF are ongoing. Although short-term growth seems unlikely to
exceed 1%, most analysts are forecasting future annual growth ranging from 4% to 6%.

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TECHNICAL REPORT
Peru’s natural resources represent 65% of the country’s GNP and 75% of its exports.
Peru’s main resources are as follows:
• Mining – According to the United States Geological Survey (January 2003), Peru is the
world’s eighth largest producer of gold and fifth largest producer of copper. Worldwide,
Peru is the third largest producer of tin, lead, and zinc, and the second largest of silver.
Within Latin America, Peru is either the largest or second-largest producer of these six
commodities. Mining accounts for 45% of Peru’s total exports and in 2000 totalled US
$3.21 billion. In 2002, mining sector exports exceeded US $3.7 billion and accounted
for 50% of the country’s total exports (MEM, March 2003).
• Oil and Gas – Peru has large proven reserves of natural gas that have not yet been
developed. At present, oil and gas accounts for 6% of Peru’s total exports.
• Agriculture – Principal agricultural products include asparagus, broccoli, mangos, and

sugar cane. At present, agriculture accounts for 5% of Peru’s total exports and 10% of
its GNP.
Peru’s secondary industries, which are linked to the transformation of natural resources,
such as textiles, canned foods, fish meal, gold and silver jewellery, and refined minerals,
show the most potential in the near future. Substantial growth is expected in the oil,
natural gas, mining, and fishing sectors, including their by-products.
Peru’s known mineral resource potential, long mining tradition, dedicated and competent
technical workforce, existing equipment manufacturing and services industries, and central
geographic location offer exceptional opportunities that differ from those presented by
other Latin American countries. The Peruvian government has implemented a policy that
encourages foreign investment through the privatization of state-run mining projects. This
policy also includes the power, railways, and telecommunications sectors. The original
privatization program is said to be about 80% complete, and the Toledo government
appears to be committed to continuing this trend, having indicated that some regional
airports, seaports, highways, more mining concessions, and possibly the regional water
companies may be privatized in the coming years.
In terms of trading conditions, the economy is completely open to foreign trade. Transfers
in and out of the country can be made without difficulty. There are no exchange controls,
and the rate is subject to market forces under the management of the Central Bank. Over
the last 12 months, the exchange rate has remained stable at around US $1 = 3.5 Soles.
Foreign companies can operate in Peru as wholly owned subsidiaries, in conjunction with
Peruvian partners, or on a joint venture basis, in each case on the same terms as local
companies.

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TECHNICAL REPORT
In 1992 Peru enacted a new mining law which:
• guarantees land tenure for mining rights distinct from surface rights where a minimum
rental is paid to hold title to mining rights
• enumerates only specific circumstances (arising from negligence of the title holder)
under which mining rights may be lost
• grants equal rights to explore for and exploit minerals by way of concession to both
Peruvian nationals and foreigners
• establishes tax, administrative, and currency exchange stability for mining investors
• establishes the right to sell mining production freely on world markets.
The current general framework for foreign investment in the country is supported by three
legislative decrees: 662, 757, and 668. One hundred percent foreign ownership is
permitted, and foreign investment in Peru is automatically authorized and registered with
the National Commission of Foreign Investments and Technology (CONITE). Repatriation
of capital and profits is possible under CONITE, which allows foreign investors to transfer
abroad 100% of capital, dividends, royalties, interest, etc., provided that payment of all
corresponding taxes is made. No restrictions are imposed on imports or exports (with the
exception of a few items such as hazardous waste). The major taxes that affect the mining
sector are as follows:
• Corporate tax rate (minimum tax of 1.5% of net assets) 30%
• Value-added tax (IGV) 16%
• Import duties 15% or 25%
• Profit sharing 5% to 10% of net

income (mining 8%)
• Re-investment tax-free
• Stock market capital gains tax-free
• Municipal promotion tax 2%
• Precious metal sales tax-free (MEM, 1998)
The Peruvian government provides tax refunds to exploration companies that have entered
an Exploration Investment Agreement through the MEM. Through this agreement, the IGV
and municipal promotion tax (an aggregate of 18%) paid on goods and services purchased
during the exploration stage may be recovered. An IGV drawback system for mining

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TECHNICAL REPORT
company exports grants a tax credit for the sum that has been paid during the production
process. As well, sizeable mining operations may be able to enter a tax-stabilization
agreement with the Peruvian government for terms of 10 to 15 years.
More recently, the Lima Stock Exchange has been reviewing the possibility of creating a
new section, or “venture capital exchange,” that will be orientated to financing junior mining
companies at their initial development stages.
Some of the main producing mines in Peru are the Yanacocha Gold Mine
(Newmont/Buenaventura), Pierina (Barrick), Tintaya Copper Mine (BHP Billiton), Antamina
(Noranda/Teck-Cominco/Mitsubishi/BHP Billiton), Cerro Verde Copper Mine (Phelps
Dodge), Toquepala-Cuajone (Grupo Mexico), and Hierro Perú Iron Ore Mine (Shougang).
5.5.5 Gold Production in Peru
Historically, most gold production in Peru came from pre-Cenozoic-aged, granitoid-hosted

quartz-vein deposits within the Pataz-Buldibuyo and Nazca-Oco belts. The Nazca-Oco
belt is characterized by late Cretaceous granitic rocks of the Arequipa segment of the
Coastal Batholith. These granitic intrusives commonly host quartz veins locally containing
high-grade gold and copper mineralization (Vidal, 1985). Regional east-west trending, left-
lateral faults commonly control the gold mineralization at many important deposits,
including Calpa and Ishihuinca (Noble and Vidal, 1994).
Increasingly the production of gold is shifting to Neogene-aged epithermal vein systems,

especially in the regions of Puquio, Cailloma, Orcopampa, and Cajamarca. The
Yanacocha mine in the Cajamarca district is a high-sulphidation gold system that covers a
northeast elongate area of 6 km x 17 km, developed within a major Miocene volcanic
centre of intermediate composition consisting of andesitic to dacitic domes, plugs, dikes,
pyroclastic rocks, and diatremes. A strong hydrothermal system was developed within the
district and is temporally and spatially associated with the volcanic/intrusive event
producing a complex system characterized with multiple and synchronous events of
volcanism, intrusive activity, hydrothermal alteration, and gold mineralization (Vidal et al.,
1997). This low-grade, large-tonnage heap-leach operation is 20 km west of the El Galeno
property and has become the largest gold producer in South America and contains a total
reserve of about 40 million oz. Production comes from five pits, the newest of which (La
Quinua) is a colluvial-hosted deposit with reserves of 13.2 million oz of gold. Yanacocha’s
annual gold production is 1.9 million oz; this is expected to increase to 2.5 million oz by
2004 (Mining Magazine, May 2002).
The Pierina mine, operated by Barrick, is Peru’s lowest-cost operation with cash operating
costs of US $40/oz and total costs of US $235/oz. The mine hosts a remaining reserve of

May 2003
TECHNICAL REPORT
89 million tonnes grading 1.8 g/t Au and last year treated approximately 31 million tonnes
of ore that yielded 911,000 oz of gold (Mining Magazine, May 2002).
Placer gold operations in Peru are of obvious historical importance and will likely remain
important but poorly quantified sources of gold. The alluvial gold deposits of northern Peru
are derived both from the Pataz-Buldibuyo region of Peru and from similar areas in
southern Ecuador. In the south the Madre de Dios Department hosts important placer gold
operations.
In 2001 Peru produced a record 135 tonnes of gold, an increase of 1.9% over the previous
year. Small- and medium-sized mining companies are estimated to account for about 4.4
tonnes per year of gold production, while the informal/artisanal sector produces about 16.5
tonnes per year (Mining Magazine, May 2002).
5.5.6 Base Metal Production
Only minor base metal production occurred during and prior to the arrival of the Spanish
Conquistadores. During the early 1900s small-scale production was from numerous mines
operated as syndicates, cooperatives, and corporations. From 1906 to the early 1970s
several major corporations operated on a larger scale (i.e. Cerro de Pasco Corporation,
Buenaventura, Southern Peru Copper Corporation, see Table 5-2).
Most current base metal production comes from skarn, carbonate-replacement, and vein
deposits (Zn, Pb, Cu) in the Central Cordillera, or from porphyry-related deposits (Cu) in
Southern Peru. A list of the principal mines by deposit types is provided in Table 5-2.
In 2002, base metal production totalled 1,038,374 tonnes of Zn, 280,885 tonnes of Pb,
826,699 tonnes of Cu and 2,430 tonnes of Ag. This represents an increase of 15.5% for
Zn, 2.8% for Pb, 13.3% for Cu, and 3.4% for Ag over 2001.

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TECHNICAL REPORT
Table 5-2: Summary of the Main Base Metal Mines in Peru

Deposit Type Mining Company Mining Unit
Zn-Pb±Cu Skarn, Carbonate Replacement, Vein
Volcan Paragsha – Cerro de Pasco
Chungar – Animon
Yauli
Milpo El Porvenir
Atacocha Atacocha
Glencore Iscaycruz
Yauliyacu
Pan American Silver Huarón
Quiruvilca
Buenaventura Uchuchacua
Caudalosa
Mitsui Huanzala
San Ignacio de Morococha San Vicente
El Brocal Colquijirca
Raura Raura
Perubar Graciela
Juanita
Corona Yauricocha
Cu-Zn Skarn
Antamina Antamina
Doe Run Cobriza
Cu Skarn BHP Billiton Tintaya
Cu Porphyry
Phelps Dodge Cerro Verde
Southern Perú Copper Cuajone
Corporation Toquepala

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TECHNICAL REPORT
6.0 HISTORY
The El Galeno Property area forms part of a former small mining district which focused on
the exploitation of limestone and quartzite hosted polymetallic mantos and veins. A nearby
zone of manganese and carbon mineralization hosted in Chimu Formation quartzite (the
Punre Zone) was exploited through small-scale mining operations until 1995 (Cordova and
Hoyos, 1999). Few details were available documenting the quantities and grades of
material mined from these deposits.
The first recorded modern-day exploration over the Property was initiated in June 1991 by
Newmont Peru Ltd. (Newmont). Newmont was working in joint venture with the Peruvian
mining company Compañia de Minas Buenaventura S.A. (Buenaventura). During 1992,
Newmont’s efforts were concentrated on an area of sulphur-bearing breccias in the Punre
zone, which is located approximately 7 km to the southeast of the El Galeno Property. In
1993, the exploration focus shifted to the sediment hosted stockwork breccia zone, which
is now known as the El Galeno zone. Over a two year period Newmont carried out a
program of systematic mapping, sampling and ground magnetic surveys followed by a
short diamond drillhole program. The program consisted of four holes totalling 774 m.
Newmont dropped the property in July 1997 as their exploration had identified
predominantly copper mineralization and failed to suggest the presence of a significant
gold deposit.
In the second quarter of 1997 North acquired an option to explore the property. In the
period 1997 to 1998 carried out a detailed exploration program consisting of:
• Geophysics: IP/resistivity survey for 7.85 line km, a ground magnetic survey for 245
line km
• Geological mapping at a scale of 1:5,000
• Compilation of previous topographical surveys
• Access road and drill platforms
• Chip sampling in the El Galeno zone
• 30 reverse circulation drillholes totalling 6,514.5 m
• 17 diamond drillholes totalling 5,857.35 m
• Preliminary metallurgical studies

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TECHNICAL REPORT
In April 1998, North completed an in-house Conceptual Study (the study) of the El Galeno
deposit. The study was based on the 38 drillholes (30 RC and 8 diamond drillholes) that
had been drilled on the property at that time. The study did not include the results of early
stage metallurgical studies, which were pending at the time. A mineral resource estimate
was completed by North prior to implementation of NI43-101 and therefore is considered to
be a historical estimate. The estimate utilized the inverse distance squared interpolation
method and resulted in an unclassified resource of 260 million tonnes grading 0.70% Cu
and 0.17 g/t Au at a copper cut off of 0.50% Cu (see Section 17). Using these mineral
resources as a base, the study then assumed that the currently defined depth of
mineralization could be extended by an additional 200 metres to depth by future drilling
programs (Webster, 1998a).
The study looked at the possibility of mining the deposit by open pit methods, using a
conventional drill and blast operation with pit slopes of 45°. The operation would produce
16 million tonnes of copper-gold ore per year, increasing to 32 million tonnes per year by
year five. The study assumed that all of the copper is present as sulphides, half of which
are in the form of secondary copper mineralization (chalcocite), suitable for heap leaching,
or production of a higher-grade flotation concentrate. Mineralogical testing to confirm the
variations in composition had not been completed to confirm this assumption (Webster,
1998a).
Several Whittle pit optimizations were carried out to estimate a “reserve”, design a
conceptual pit and produce an approximate mining schedule. Some of the main
optimization parameters included: mining costs of US $0.62 to US $0.70/tonne, processing
costs of US $ 2.65/tonne, copper and gold recoveries of 90% and 70%, respectively, a
discount rate of 6%, and a copper price of US $0.95/lb. The selected final pit contained a
“reserve” of 408 million tonnes grading 0.63% Cu and 0.16 g/t Au, at a varying cut-off
grade due to changes in mining costs with depth. The final pit design is elliptical in plan
and covers an area of 1.4 km along strike (northeast) and 1.2 km across the deposit (see
Figure 6-1) (Webster, 1998a). It should be noted that North completed the “reserve”
estimate on a “potential resource” which includes the mineral resource estimate and the
200 m of additional material and they admitted that the reserve would not meet the
Australian JORC code requirement for the reporting of ore reserves. AMEC agrees that
this study was completed for in-house conceptual purposes only and that the mineral
resource is a historical estimate but the reserve should not be utilized. However the
conceptual study provided a useful review of project options.

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TECHNICAL REPORT
Concentrate from conventional flotation would be transported as a slurry in a 360 km long

pipeline to the port of Salaverry (Figure 4-1). The cathode produced from the heap leach
or concentrate leach options would be trucked to the same port. Power would be supplied
by the national grid, however other power options, including an oil power station and a
hydroelectric power station were also considered. Thickened tailings would be discharged
into a tailings dam in an area yet to be determined, and water for the mine site would be
provided by damming the junction of the nearby Rio Yanacocha and Rio Grande rivers
(Webster, 1998a).
According to the North study, only the untested Intec Method was financially viable,
producing an NPV of US $122 million at a 9% discount rate and at an average cash cost of
US $0.39/pound of Cu after a small gold credit. In comparison, the conventional flotation
process resulted in a negative NPV of US $100 million at a 9% discount rate. The study
also stated that to meet North’s requirements for investment, a deposit with a reserve of
greater than 500 million tonnes grading greater than 0.90% Cu and 0.25 g/t Au would be
required. North also commented that the current lack of a suitable power source could be
a major threat to the project (Webster, 1998a).
Later in 1998, North improved the topographic base and drilled an additional 17 diamond
holes. In September of that year the conceptual study discussed above was re-done
incorporating 16 of the 17 new drillholes. The resource estimate used Ordinary Kriging
(see Section 17-2) and results were not that much different from the earlier estimate. An
optimum pit was designed using Whittle 4X software. The mill feed grade was optimized
resulting in a total “reserve” of 430 million tonnes grading 0.57% Cu and 0.13 g/t Au
(Webster, 1998b). It should be noted that North completed the “reserve” estimate on an
“Inferred resource” and they admitted that the reserve would not meet the Australian JORC
code requirement for the reporting of ore reserves. AMEC agrees that this study was
completed for in-house conceptual purposes only and that the mineral resource is a
historical estimate. In this updated study a conventional flotation method was proposed,
which would mill 20 million tonnes of ore per year, increasing to 30 million tonnes in year
three. A pipeline would be used to pump a concentrate slurry 360 km to the coast. Capital
costs were estimated a US $1,042 million and using a 10% discount rate, financial
modelling resulted in a negative NPV of US $291 million. The net cash cost of production
after gold credits, is US $0.575/lb (Webster, 1998b).
A high-grade zone (grading >1% Cu) that was defined by the drilling was evaluated as a
starter pit, but resulted in a negative US $30 million NPV. This indicated that even with the
inclusion of the high grade zone, within the current mineralized area, would not enable the
project to meet North’s minimum development criteria. North stated that significant
reductions in the capital costs would be needed for the project to meet development

May 2003
TECHNICAL REPORT
requirements. Finally North believed that the geology and mineralization had not been
adequately defined by the drilling and that a regional exploration program should be
initiated to discover additional high-grade resources that could be used as a starter pit
(Webster, 1998b).
In 1999 a helicopter-borne magnetics survey and an IP/resistivity survey (Val D’or) were
completed.
In 2000 the property passed into the hands of Rio Tinto Peru SAC (Rio Tinto), as a result
of Rio Tinto’s take over of North. After a review of the data, Rio Tinto concluded that they
had no interest in either continuing exploration or developing the project, and after an
unsuccessful bid to joint venture the Property, they returned it to the owners.
In July 2000, the El Galeno project was reviewed by Simons Peru S.A., which is now part
of AMEC, on behalf of North. Simons concurred that additional mineralization would be
required and combining El Galeno with Michiquillay may be a viable alternative.
Environmental issues at the El Galeno Project to date are the areas disturbed by the
trenching and drilling programs completed by North. Approximately 67,790 m2 was
disturbed by the 1997 and 1998 exploration work that included, for example, access roads,
drilling platforms, stilling ponds, and camp platforms but excluding exploration trenches,
and around 78,870 m3 of soil was moved to complete the work. A further 12,180 m2 was
estimated to be disturbed and 6,930 m3 of soil moved for the 1999 program (White, 1998).
A report by White, 1998 notes that the topography, surface water drainages, groundwater,
and flora of the El Galeno property could be affected by the exploration activity at the site.
Construction of the access roads and drill pad sites could increase the potential for soil
erosion, alter the surface water runoff patterns, and temporarily increase the turbidity of the
water. The exploration boreholes could conceivably create a groundwater flow path
between soil and/or bedrock aquifers, although the potential for such vertical
communication would be limited by the use of drill casing in the unconsolidated materials
and the use of bentonite as a drilling additive in bedrock. Natural vegetation at the site
would be disturbed by the roads, drill pads, and exploration camp.
Documented measures to protect the environment to be emplaced for the 1999 exploration
work included, for example:
• That cuttings and drilling fluids would be captured in settling ponds at each drill site.
• Grey water from the camp would be discharged via pipe to an area on the property
away from natural drainages and allowed to infiltrate into the soil.

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TECHNICAL REPORT
• Fuel and lubricants would be kept in secure storage areas on site.
• Waste fuel and lubricant products, packaging, and contaminated materials would be
trucked off-site to the city of Cajamarca for disposal.
The remediation and restoration plans for the 1999 exploration program at El Galeno
included placement and compaction of soil over the abandoned camp, access road, and
drill pad areas in conformance with the pre-existing topography. Topsoil stockpiled from
the exploration construction work was to be replaced, and the areas fertilized and seeded
as required. In addition, the exploration boreholes were to be backfilled as much as
possible with bentonite, and a concrete plug installed at the borehole collars. These
measure were not implemented, as access over the project was still required after the
completion of the 1999 exploration program. However, all drill platforms and roads were
left in a good state of cleanliness without any significant sign of contamination (see Plate 6-
1 Appendix D).

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TECHNICAL REPORT
7.0 GEOLOGICAL SETTING
7.1 Regional Geology
The general geology of Peru has been summarized by Petersen et al. (1990) as consisting
of a number of northwest-trending lithotectonic belts. The geological, structural, and
metallogenic provinces that comprise these regional lithotectonic belts define the Peruvian
Andes, which form a continuous line along the entire western edge of South America.
Within Peru the Western and Coastal Cordilleran belts are especially relevant to the
development of the major Peruvian metallogenic provinces. According to Mukasa et al.
(1990) the Western and Coastal Cordilleras of the Peruvian Andes consist of several
lithologic units ranging in age from Proterozoic to Tertiary. Precambrian basement rocks,
referred to as the Arequipa massif, outcrop along the continental margin in central and
southern Peru.
The belts along the Peruvian continental margin have long been recognized as one of the
most heavily mineralized regions in the world. Despite the fact that Peru is a mature
mining country, with past and present production of many metals from a large number of
mines of all sizes, many deposit models/types developed from other parts of the world are
just starting to be recognized and exploited. The potential for discovering large-tonnage
epithermal or porphyry-type gold (gold-copper) deposits is high. Important gold deposits
occur in all the major geologic and tectonic zones, in distributions that clearly do not follow
any simple plate tectonic model (Noble and Vidal, 1994). In addition to being related to
belts of magmatic activity, there appears to be longitudinal variation in the nature of
mineralization in Peru. Central Peru seems to be less favourable for gold but more
favourable for base metal (skarn Cu-Zn or Zn-Pb) deposits than the southern or northern
parts of the country. The potential for gold discoveries appears especially promising within
the established Cajamarca-Hualgayoc, Pataz-Buldibuyo, and Nazca-Oco metallogenic
belts.
7.2 Property Geology
A regional thrust fault verging north-northeast has brought the Lower Cretaceous rocks
that host the El Galeno mineralization, over the Upper Cretaceous stratigraphy. The
porphyry-style mineralization is hosted both by sediments of the Goyllarisquizga Group
and porphyritic dacitic intrusive bodies. The principal stratigraphic and intrusive units are
described below and in Figure 7-1.

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TECHNICAL REPORT
The geology is taken from the INGEMMET Mapsheet 19-h 1:100,000, and the local
geology description is taken from Cordova and Hoyos (1999), Tanabe et. al. (1995), and
Bellés (199?a, b and c).
The Chimu Formation is Lower Cretaceous, Lower Valanginian in age, and ranges from
50 to 600 m thick. The formation outcrops to both the northwest and southeast of Quina
Cucho on the Project and comprises medium to coarse-grained quartzites in beds of 1 to
5m thickness.
The Santa Formation is Lower Cretaceous, Upper Valanginian in age and is in contact
with the intrusive in the main zone of mineralization. The formation is characterized by
limestones, marls and siltstones. However, in the El Galeno area the formation has a
coarser clastic component with intercalations up to 10 m thick of fine sandstone, laminated
siltstone and sandy quartzites. These components, together with the siltstones, occur in
the contact zone where they attain an overall thickness of 70 to 90 m (see Plate 7-1
Appendix D).
The Carhuaz Formation is Lower Cretaceous, Barremian in age. The formation overlies,
in a concordant manner, the sandy quartzites and the sandy fine siltstones of the Santa
Formation with which it has many similarities. The rocks of the Carhuaz Formation on the
El Galeno property are distinguished from the sediments of the Santa Formation by a
greater abundance of sandy quartzites. These sediments occur along the edge of the El
Galeno anticline.
The Farrat Formation is Lower Cretaceous, Barremian to Aptiano in age. The formation
comprises the quartzites and interstratified siltstones that form much of the abrupt relief on
the Property. The main exposures are on Cerro Hilorico and Cerro Guaguayo, and to the
southwest where the Farrat sediments are overlain by the Albiano limestones.
Three Intrusive Units have been identified on the Property.
An Early Dacite Porphyry is characterized by a holocrystalline porphyritic texture. A fine-

grained matrix of quartz and potassium feldspar is more abundant than the feldspar,
biotite, hornblende and quartz phenocryst population (see Plate 7-2 Appendix D).
A Late Dacitic Porphyry intrusive by contrast has a holocrystalline texture and a higher
phenocryst, predominantly plagioclase, concentration with a subordinate groundmass of
feldspar and quartz. This intrusive is characterized by weak to no alteration, therefore
often sterile, and is generally encountered in the inner, deeper areas of the system (Figure
9-2)

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TECHNICAL REPORT
Diabase Dykes have an ophitic to subophitic texture with local hypocrystalline to

holocrystalline textures. The dykes are comprised of plagioclase, calcite, augite, olivine,
magnetite and spinel.
In addition, an Intrusive Breccia is observed in the northeast and central areas of the
deposit at depth. This unit consists of fragments of the early dacite porphyry, which may
be mineralized in a matrix of late dacite porphyry.
Quaternary Deposits include glacial and fluvio-glacial deposits of Pleistocene age, which
consist of sands, gravels etc. The deposits are most prevalent in the base of the
Rinconada Valley (Plate 5-6 in Appendix D).
The El Galeno Project is associated with an asymmetric anticline that formed in the upper
plate of a major thrust. The axial plane of the anticline trends N58ºW and dips 77ºN. The
main intrusive bodies were emplaced close to the axis of the fold occupying the area
between Cerros Guaguayo and Quina Cucho (Figure 7-1 and Figure 7-2).
A radial fracture system formed in the vicinity of the intrusive body affecting both the
intrusive and sediments. The fractures are from millimetres to several metres in size and
played an important role in alteration and mineralization.
Other fault systems that are apparent in the area include:
• A northeast to southwest system which is best developed in the Cerro Hilorico and
Cerro Quinua Cucho areas
• A northwest to southeast trending system which is less well developed
• An east to west trending set which occurs mainly in the zone to the north of Cerro
Caparrosa, and which includes a regional normal fault which can be traced over
kilometres of strike length
• A north-south trending system whose strike varies from N12°W to N15°E, and which
has a steep angle of dip.
The last structural event of significance on the property is considered to be the formation of
the stockwork related to the formation of the El Galeno porphyry system.

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TECHNICAL REPORT
8.0 DEPOSIT TYPES
Mineralization at El Galeno is an Andean example of a porphyry copper, molybdenum and

gold deposit. A generic description from Pantaleyev (1995) summarizes the common
features of porphyries as large zones of hydrothermally altered rock containing quartz
veins and stockworks, sulphide-bearing veinlets; fractures and lesser disseminations in
areas up to 10 km2 in size, commonly coincident wholly or in part with hydrothermal or
intrusion breccias and dike swarms. Deposit boundaries are determined by economic
factors that outline ore zones within larger areas of low-grade, concentrically zoned
mineralization.
Important geological controls on porphyry mineralization include igneous contacts, cupolas

and the uppermost, bifurcating parts of stocks and dike swarms. Intrusive and
hydrothermal breccias and zones of intensely developed fracturing due to coincident or
intersecting multiple mineralized fracture sets commonly coincide with the highest metal
concentrations.
The effects of surface oxidation commonly modify porphyry deposits in weathered

environments. Low pH meteoric waters generated by the oxidation of iron sulphides leach
copper from oxidized copper minerals such as malachite, chrysocolla, and brochantite and
re-deposit it as secondary chalcocite and covellite immediately below the water table in flat
tabular zones of supergene enrichment. The process results in a copper poor leached cap
lying above a relatively thin but high-grade zone of supergene enrichment that caps a
thicker zone of moderate grade primary hypogene mineralization at depth.
Alternatively, or in addition a porphyry system may exhibit hypogene enrichment. The

process of hypogene enrichment may relate to the introduction of late hydrothermal copper
enriched fluids along structurally prepared pathways, or the leaching and redeposition of
hypogene copper, or a combination of the two. Copper mineralogy comprises, for example,
covellite and chalcocite. Such enrichment processes result in elevated hypogene grades.
Other deposit styles that are commonly associated with porphyry deposits (spatially and
genetically) include precious metal rich epithermal and other quartz vein systems, skarns,
and exotic secondary copper deposits formed by the lateral migration of metal in low-pH
fluids away from the main body of porphyry mineralization.

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TECHNICAL REPORT
9.0 MINERALIZATION
There are two main styles of mineralization on the El Galeno Property. Both are related to
the El Galeno porphyry hydrothermal center, and comprise:
• An early lower grade Cu with Mo and Au hypogene mineralization event
• A later Cu enriched mineralization event whose origin (i.e. whether it relates to a

hypogene or a supergene enrichment event), is unclear from the information provided
to AMEC although a hypogene origin is favoured based on available data.
In addition, there is a very weakly developed and localized oxidation/leaching event

superimposed on the main Cu mineralization.
Zones of breccia-hosted gold mineralization are located to the east and southeast of the
hydrothermal centre, lying partially on the El Galeno Property but also extending onto the
adjacent and overlapping El Molino Claims (Section 15, Figures 7-2 and 5-2).
Each of these mineralized occurrences is discussed in more detail below. The main
copper mineralization types are addressed in more detail as they hold a greater
significance. In the opinion of AMEC the nature of the mineralization is reasonably
documented for a porphyry deposit, but poorly documented for the breccia-hosted gold
targets. The genesis and the main controls on the mineralization related to the porphyry
centre are only moderately understood. Figure 7-2 shows the locations of the different
types of mineralization on the property.
9.1 Generalities of the Cu Porphyry System
The alteration system associated with the El Galeno porphyry extends for approximately
1,800 m by 1,000 m and trends northwest. It has a core zone where phyllic alteration
overprints potassic, although the latter becomes dominant with depth. Phyllic alteration
dominates the periphery of the core zone (Figure 9-1). An inner higher grade >0.6% Cu
zone defined by North extends over 900 m by up to 700 m and trends northeast (Figure 9-
1). Notably the altitude of the collars of the holes drilled in the higher-grade zone vary
between approximately 4,000 and 3,800 masl, and it is clear that part of the enriched zone
has been lost due to erosion (Figures 9-2 and 9-3). The higher-grade zone is internal to
approximately 100 to 500 m wide concentric zone of >0.4% Cu mineralization.

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TECHNICAL REPORT
Over the zone of higher Cu grade the alteration is dominantly phyllic with areas of relict
potassic alteration (see Plates 7-2 and 9-1 Appendix D). The transition from the outer low-
grade pyritic shell to the areas of greater than 0.4% copper is very evident in outcrop. The
more significant copper mineralization is associated with a very notable increase in
stockworking, fracturing and in some cases faulting i.e. a better degree ground preparation
(see Plate 9-2 Appendix D).
The average grade for the deposit is around 0.65% Cu and 0.16 g/t Au (Section 17). The
molybdenum has not been considered as an economic component in the resource studies
to date. However, it may be relevant as a by-product grades are up to approximately 900
ppm Mo (Section 16).
Mineralization occurs in the form of disseminations, and vein and fracture infilling (Plate 9-
3 in Appendix D). The principal copper minerals are chalcopyrite, covellite, chalcocite with
lesser sulphosalts, native Cu, digenite and minor bronchantite. Chalcopyrite and
molybdenite are strongly associated with areas of vein and fracture stockworking.
Microscopy studies indicate that at least part of the contained gold occurs encapsulated in
chalcopyrite and arsenopyrite.
Surface sampling by Newmont and North defined a copper and largely coincident gold
anomaly. The core of the copper anomaly shows good spatial correlation with anomalous
molybdenum values. A strong arsenic and a patchy antimony anomaly occur towards the
northwestern end of the copper anomaly where copper values in general were weaker.
However, in drill core significant arsenic values are found sporadically throughout the
copper enriched zone. Weak and relatively insignificant patchy anomalous zinc and lead
zones were delineated along the southwest edge, and with respect to zinc also along the
southeastern extremities of the copper anomaly.
The most abundant metallic minerals are pyrite and magnetite. Pyrite occurs in both the
intrusive and the sediments in concentrations ranging from 1% to 10%, while the magnetite
is preferentially concentrated in the intrusives occurring as disseminations, associated with
biotite and in microveinlets. The pyrite may have inclusions of pyrrhotite and mackinawite,
chalcopyrite, rutile, molybdenite and sulphosalts.
Potassic alteration is characterized at El Galeno by a dominance of potassium feldspar

and a subordinate amount of biotite (Plate 9-4 in Appendix D). The potassium feldspar
variously occurs as a pervasive to semi-pervasive microgranular mass that imparts a
pinkish-cream color to the altered rock. The potassic feldspar occurs within or as halos to
quartz ± magnetite veins, replacing feldspar phenocrysts, or as disseminations in the
matrix of the host rocks. Biotite is reported to occur in a pervasive manner in andesitic
dykes. However, elsewhere it occurs in a pervasive manner, as individual grains in the

May 2003
TECHNICAL REPORT
intrusives, and as disseminations in the sediments. Biotite also occurs as vein infill.
Occasional andalusite is also reported as occurring with this assemblage.
Phyllic alteration is typified by sericite and quartz with variable amounts of associated
pyrite (Plates 7-2 and 9-1 in Appendix D). Sericitization is more prevalent within the
intrusive where it may become semi-pervasive to pervasive in nature, although massive
replacement is also seen in the sediments. In the less intensely altered areas, the
sericitization occurs in a selectively pervasive manner replacing feldspar phenocrysts in
the intrusive, and as disseminations in the groundmass.
Two generations of silicification have been identified, an early weaker silicification prior to
the main sericitization event, and a later silicification contemporaneous or post
sericitization. The later silicification may be semi-pervasive to pervasive.
Propylitic alteration is a restricted phenomenon in the El Galeno system. Chlorite occurs in

an irregular manner replacing biotite and occasionally the feldspar phenocrysts in the
intrusives. Although not observed on the site-visit or during the examination of selected drill
core, chlorite may apparently reach 5% to 10% by volume of the dacitic porphyry. Minor
epidote is also noted.
Argillic alteration has only been observed in the relatively near surface environment where
it is comprised mainly of kaolinite and other clays. Argillic alteration was predominantly
observed in dill holes DDH-GN-01, 03, 42, 43 and 44.
9.2 Early Low Grade Hypogene Cu Mineralization
Early hypogene Cu, Mo, Au mineralization is hosted by both the sediments and the
intrusives. Chalcopyrite without replacement by covellite and/or chalcocite, is reported to
be encountered only in the deeper areas of the system. Copper grades in the hypogene
zone vary between 0.1 and 0.2%. However, the grade could be lower as it is often unclear
in core samples and from the drill logs precisely where the boundary with covellite and
chalcocite mineralization is. This is further exacerbated by the lack of sequential copper
analyses (Section 14), which would highlight the transition form enriched mineralization
versus hypogene mineralization.
Chalcopyrite occurs as disseminations, lining fractures and frequently within veins. It

occurs within pyrite and early sphalerite in the form of chalcopyrite disease. Chalcopyrite
is found in irregular ‘A’ and also ‘B’ -Type veins with pyrite and occasionally molybdenite.
In addition ‘D’ – Type veins with sericite-silica alteration halos may host chalcopyrite as
well as pyrite. A late-stage episode of quartz-pyrite veining has not been observed to host
chalcopyrite.

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TECHNICAL REPORT
Chalcopyrite is replaced by bornite, whose deposition may have been partially coeval with
that of chalcopyrite, and also by later covellite, chalcocite, digenite ± tetrahedrite and
tennantite. Chalcopyrite replaces pyrite indicating that initially copper activity was sufficient
to result in pyrite instability but that iron activity was great enough to preclude bornite
formation. As the system evolved it is apparent that iron activity decreased, while copper
activity remained high enough to result in the deposition of bornite. Bornite is seen
replaced by covellite and to a lesser extent chalcocite. The successive replacements by
bornite, covellite, chalcocite and digenite indicate an increase in the activity of copper
relative to iron.
9.3 Late Cu Enrichment Event
The late Cu enrichment event is dominated by covellite (CuS) with lesser chalcocite
(Cu2S). The distribution of both of these minerals is not known. However, it is indicated
that copper enrichment is preferably associated with stronger phyllic alteration, and also is
more favoured by the impure sandstones and shales than the quartzites. Covellite and
chalcocite occur to a maximum of 400 m depth above the topographically highest part of
the system. The distribution is an almost ‘blanket-like’ zone of higher-grade copper
(Figures 9-2 and 9-3). On the cross-sections it can be seen that this feature has an
apparent maximum vertical thickness of approximately 380 m with respect to the >0.3% Cu
outline, and of approximately 340 m with regard to the >0.5% copper contour. Caution
should be exercised regarding extrapolation of an enrichment blanket as the drill spacing is
wide and may preclude the identification of a more irregular pattern to the enriched zone.
In hand-specimens covellite and chalcocite are seen forming patinas on both chalcopyrite
and pyrite located on fractures (Plate 9-3 in Appendix D), as disseminations and in veins.
Microscope studies show covellite rimming and replacing chalcopyrite (CuFeS2) and on
occasion chalcocite or digenite (Cu1.8S). The textural relations between the covelllite and
the chalcocite or digenite are unclear from photomicrographs included in the microscopy
reports and are not described in the accompanying text. However, the covellite does
appear to be intimately associated with chalcocite and digenite, rather than being replaced
by the more copper enriched species.
Less frequently, chalcocite and/or digenite are seen forming alteration coronas around
chalcopyrite suggesting that localized higher copper activities existed. Photomicrographs
suggest that the crystallization of associated tetrahedrite (Cu12Sb4S13) and tennantite
(Cu12As4S13) may have occurred in more than one phase, unless there was a late, minor
chalcopyrite event. The sulphosalts appear to be replacing chalcopyrite and sphalerite in
some areas while in other photomicrographs they appear to be replaced by chalcopyrite,
covellite and chalcocite. Only rarely has chalcocite been seen replacing digenite.

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TECHNICAL REPORT
9.4 Leaching and Oxidation
Only weak oxidation and negligible to absent leaching were noted near surface and
appears to be a localized phenomenon. Oxidation and leaching generally penetrates no
deeper than approximately 50 m, but the penetration depth is frequently less and in some
cases this zone is completely absent. Occasional signs of leaching along main fractures
was observed in both outcrop and drill core. However, in both situations fresh sulphide
was always noted to be in close proximity.
9.5 Breccia-hosted Au Mineralization
Sampling primarily by North over the zone of brecciation in the Cerro Hilorico area on the
adjacent El Molino concession (Figure 7-2) defined a gold anomaly that is approximately
800 m by 500 m. The anomaly is open to the west and south, and possibly also to the
east. The anomalous area grades in general 100 ppb to 500 ppb and hosts a number of
poorly-defined zones that are between 501 ppb to >1,000 ppb Au (Figure 9-5).
Structurally controlled breccias with a variable hydrothermal component are hosted in the
quartzites of the Chimu Formation. Field observations suggest that the breccia zones are
predominantly hosted in fault zones and in bedding-parallel structures widths of the zones
are irregular. Observed breccia textures range from mosaic, to jigsaw to chaotic.
Quartzite fragments in the breccia are generally angular with a lesser component showing
a sub-angular to sub-rounded nature. Field observations by AMEC suggest a patchy weak
sericite-clay±silica alteration of the fragments. The matrix to the breccia is variable. In
some areas the matrix comprises fine rock flour with a minor silica component, while in
other areas the matrix is dominated by microcrystalline, milky (?) hydrothermal quartz,
which in some instances imparts a jasperoidal appearance to the rock. The matrix silica is
associated with fine, disseminated alunite and accessory zircon and sulphides (Bellés J.G.,
199?a). In addition, alunite was also observed in veins occurring in a microcrystalline
form, displaying an acicular habit.
Surface sampling by Newmont and North over the sediment package that hosts the
described gold mineralization returned variable results. North drilled several holes into the
area immediately to west of Cerro Hilorico, and to the north around in the Laguna Dos
Colores zone in order to test weak breccia-hosted gold anomalies, and also to test a
conceptual quartzite-hosted gold target (Miguel Cardozo ex-head of North Exploration
South America, pers. comm.; Figure 7-2). All holes returned negative results.

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TECHNICAL REPORT
10.0 EXPLORATION
Two exploration programs were completed over the El Galeno Property. The first of these
programs was carried out by Newmont in 1991 to 1997, and second by North in 1997 to
1999. CRS have completed no exploration activities on the Project to date.
10.1 Newmont Exploration Activities
Newmont concentrated their exploration activities in an area known as the Punre Zone,
which lies 7 km to the southeast of the El Galeno mineralization. Exploration efforts in the
Punre approximately area were focussed on a zone of sulphur-bearing breccias. However,
in 1993 Newmont discovered the stockworked and brecciated dacitic bodies that intruded
the Lower Cretaceous sediments in the El Galeno zone. This area subsequently became
the focus of Newmont’s activity in the district.
In 1995 Newmont carried out systematic mapping and surficial sampling over the El
Galeno zone.
Newmont also collected 410 samples over the main El Galeno porphyry zone. The
samples were predominantly rock chip from outcrop with a lesser number of trench and
soil samples which were taken along a total of 22 lines striking N37°E, forming a 50 x 25 m
sampling grid. In addition, 54 rock chip samples were collected from the Laguna Kerosene
zone, 11 rock chip samples from the Cerro Hilórico area, and 16 rock chip samples from
Cerro Quishuar Conga (Figure 7-2).
This surface sampling defined a weak to moderate, 150 to +600ppm, copper anomaly over
an area of approximately 800 m by 400 m trending northwest. Correlated with this
anomaly were elevated levels of Au, while higher As values and weakly anomalous Sb
were found to be concentrated at the northwestern end of the Cu anomaly. A higher-grade
area of the Cu anomaly extends over approximately 350 m by 400 m and grades up to
0.16% Cu. Anomalous Mo values are coincident with the higher grade Cu zone.
Copper and gold values in the Laguna Kerosene zone were low, while samples form the
Cerro Hilórico and the Cerro Quishuar Conga areas returned sporadically high Cu and Au
values.
Subsequent to the surface sampling program Newmont drilled four diamond drillholes
totalling 774 m in the central area of the porphyry (Figure 9-4). Disappointing gold results
meant that no further work was carried out, and the property was dropped.

May 2003
TECHNICAL REPORT
It was not possible for AMEC to confirm the validity of the majority of the work carried out
by Newmont. Although the field descriptions and maps appear reasonable, the drill core
was not available for review and sampling, and in addition no quality control/quality
assurance data, laboratory certificates or other supporting information were available to
AMEC.
10.2 North Exploration Activities
North optioned the property in 1997 and collected 270 rock chip samples in the El Galeno
zone from along access routes and drill platforms. The results of this sampling confirmed
the anomalies outlined by Newmont. The Property was mapped at a 1:5,000 scale and a
detailed topography survey compiled.
North also took a number of rock chip samples over the zone of brecciation in the Cerro
Hilorico area (Figure 7-2) on the adjacent El Molino concession. Sampling defined a gold
anomaly that is approximately 800 m by 500 m (Figure 9-5). The anomaly is open to the
west and south, and possibly also to the east.
A drill hole program during 1997 to 1998 by North comprised 30 reverse circulation
(6,514.5 m) and 17 diamond drillholes (5,857.35 m), which defined the limits of the El
Galeno porphyry system. However, the spacing of the drilling was too wide to define the
overall form of the high-grade copper mineralization. In addition, some of the latter holes
were located to test a conceptual gold target in the northern sandstone package. Breccia
zones within this sandstone package had given sporadic anomalous gold values at
surface. However, drilling turned-up only weakly anomalous gold values in the underlying
rock.
Although the geology of the Property appears reasonable, the structural, alteration and
mineralization synthesis needs to be re-addressed. The validity of the geochemical
database could not be verified.
North commissioned the following geophysical surveys over the Property:
• An induced polarization (IP)/resistivity survey in 1997 which was done by Zonge

Engineering (please note that there exists in the data confusion as to who actually
carried out the survey). Seven profiles were completed for a total of 7.85 km of dipole-
dipole data using 50 m dipoles
• An IP / resistivity survey in 1999 carried out by Val D’Or Geophysics. Eight profiles
were completed for a total of 15 km of pole-dipole data using 50 m dipole and lines
spaced 400 m apart

May 2003
TECHNICAL REPORT
• Helicopter-borne magnetics (heli-mag) survey in 1999. A total of 26 profiles were flown

covering 112 km, with lines spaced 200 m (?) apart. It is not reported in the
information provided to AMEC who flew the survey
• A ground magnetic survey in May 1997, consisting of 17 profiles covering

approximately 24.5 km, spaced 100 m apart.
At this low magnetic latitude the magnetic field is inclined such that magnetic anomalies in
the total field image will be characterized by a predominantly negative response (coloured
blue), and will be asymmetric. To simplify the interpretation, and since the reduction to
pole process can be problematic at low latitudes, a good alternative is to calculate the
analytic signal of the total field data. This process transforms data so that anomaly peaks
are centred over their sources. Both the heli-mag data and the ground magnetic data
clearly show a response to the main mineralized zone whose centre is located at 795750E,
9228500N (Figure 10-1). A broad, circular zone of high magnetic response measuring
about 1.5 km by 1.5 km corresponds quite closely with the zones of highest assay results
and with the mapped alteration zones. This same zone extends, albeit more weakly, to the
southeast a further 800 m or so.
Other smaller and weaker anomalies of a similar nature are located at:
• 797070 E, 9228320 N
• 796800 E, 9229900 N
• 794550 E, 9227300 N
• 794200 E, 9227200 N
• 795550 E, 9226100 N (open to south).

May 2003
TECHNICAL REPORT
With regard to the Induced Polarization and Resistivity data, only the results of the Val
D’Or survey of 1999 were reviewed since data from the 1997 surveys was not made
available to AMEC.
In general the chargeability sections appear to correspond very well to the main
mineralized zones where there is also a high magnetic response (Appendix C). Good
examples of this are:
• Line 1800 E where a significant chargeability response occurs between 1100 m and
1650 m on the section, corresponding to the northernmost extent of the main magnetic
anomaly at about 795800 E, 9228600 N to 9229150 N
• At a distance of 2300 m to 2500 m on line 2600 E and at a distance of 2000 m to 2300

m on line 3000 E, corresponding to a magnetic anomaly which spans the two lines at
9229900 N and 9228750, respectively.
In these cases the resistivity response in the corresponding sections is in the middle of the
range of values and is not distinct. In fact the resistivity data reflects more the structural
controls and the geology, and is less affected by mineralization. For example on lines
1400 E, 1800 E and 2200 E zones of low resistivity correspond to the valley bottom,
whereas zones of high resistivity correspond to the high ridge which spans these three IP
lines in an east-west direction. In some cases there is also a strong chargeability
response, which clearly corresponds to the high resistivity zones at the top of the ridge,
such as on line 1400 E. There is no magnetic response at this point and therefore this
chargeability high is of a lower priority than those with a coincident moderate resistivity
response and high magnetic response.
10.3 Exploration Potential
The exploration potential on the El Galeno Property appears to be restricted. Three main
types of mineralization provide exploration targets on or proximal to the El Galeno
Property. These are:
• Extensions to the known porphyry copper system
• Deposits of eroded material from the leached cap, oxide zone and part of the covellite-
chalcocite zone
• Gold-bearing breccias
Each of these targets is discussed briefly below.

May 2003
TECHNICAL REPORT
The limits of the El Galeno porphyry system have been fairly well-defined. However, there
are five magnetic anomalies that are smaller and weaker in character than the main
anomaly over the known porphyry, these should be evaluated (Figure 10-1) and possibly
drill-tested. Three of these anomalies lie to the southwest of the main porphyry system.
The other two anomalies are located to the east of the main porphyry and lie in the overlap
zone between the El Galeno and El Molino Properties.
The most diagnostic combination of geophysical response for locating similar porphyry-
style mineralization would be a combination of high magnetic zones, as seen in the image
of the analytic signal of the total field data, coupled with high chargeability and moderate
resistivity.
The information provided to AMEC supports the conclusion by North that the zones of
higher grade of copper mineralization relate primarily to the presence of supergene
chalcocite. As this zone is exposed at surface it is therefore assumed that the leach cap,
oxide zone and potentially part of the enriched chalcocite zone was eroded. If this
scenario proves to be correct then there is the possibility that the eroded copper
mineralized material was deposited in the proximity. There is no reference in any of the
data supplied to AMEC that this was considered at any point.
The gold-bearing breccias of Cerro Hilorico have yet to be drill tested. Of the last five
diamond holes that were drilled by North in order to test gold targets (see Section 9 and
Section 11) only DDH-GN-47 returned any significant results. The following three
intersections were the most significant:
• 104-128m 24m @ 1.91ppm Au
• 154-162m 8m @ 0.48ppm Au
• 200-206m 6m @ 0.91ppm Au.
DDH-GN-47 is also the most proximal of the holes to the Cerro Hilorico area (Figure 7-2).
It should be noted that the Cerro Hilorico gold anomaly does not lie within the El Galeno
claims, but within the El Molino claim block.

May 2003
TECHNICAL REPORT
11.0 DRILLING
Newmont drilled four diamond drillholes with a total meterage of 774 m in 1995 (holes
DDH-GN-01 to DDH-GN-04). All four holes were collared in the core area of the property
(Figure 9-4). Minimal data pertaining to these four drillholes is available. Sections of the
drill core may exist in the core storage facility in Cajamarca (see Plate 10-1 Appendix D)
but could not be located by AMEC during the site visit.
North drilled approximately 12,372 m in 47 drillholes from 1997 to 1998. This includes
6,514.5 m of reverse circulation drilling in 30 holes in 1997 using Andes Drilling (holes
RCD-GN-05 to ECD-GN-34), and 4,435.6 m of diamond drilling in 12 holes in 1998 (DDH-
GN-35 to DDH-GN-46; see Appendix B).
The majority of the holes were drilled in the defined ‘’core’’ area of the property and in the
immediate periphery. Drilling is in general on 100 m to 250 m spaced east-west section
lines, along which drill hole spacing ranges in the main area from 150 m to 250 m. Outside
of the main zone the drill hole spacing widens to 300 m to 500 m.
The reverse circulation holes, all of which were vertical, cover the whole area of the
porphyry. The objective of the program was to determine the extent of the mineralization
(Córdova and Hoyos, 1999 and 2000). Hole RCD-GN-11 was drilled as a twin to the
Newmont diamond hole DDH-02.
The original objective of North’s 12 initial diamond holes (5,152.6 m) was to verify the zone
of “high-grade” copper mineralization, to twin RC holes, and to obtain samples for
metallurgical testing. However, North never used these holes for metallurgical testing and
instead composite samples were formed from reverse circulation reject material (Section
16) for metallurgical testwork.
Most of the diamond drillholes relating to the 1998 campaign were drilled to the west,
southeast and east of the intrusion. Of these 12 holes seven were vertical, 5 were inclined
dipping 45º to the west. Two holes, DDH-GN-45 and DDH-GN-46, were drilled to twin the
earlier reverse circulation holes (RCD-GN-28 and RCD-GN-08) in order to check on grade
variability related to the drilling method.
North completed an additional five diamond holes totalling 1,421.75 m (holes DDH-GN-47
to DDH-GN-51) in 1998. Four of the holes were inclined at 45° to the northwest, southeast
and south. The fifth hole was inclined at 60° dipping towards the south. Although details
pertaining to the program were not made available to AMEC at the time of this report,
personal communication with Miguel Cardozo (the ex-head of Exploration for North South
America) indicates that the purpose of this drilling was to test extensions of the porphyry

May 2003
TECHNICAL REPORT
mineralization to the north, and to test conceptual gold targets hosted within the northern
sandstone package. Mr. Cardozo also mentioned that no significant results were returned
from this drill program.
In general, all of the drilling by North was completed using HQ diameter core, although a
few holes were also drilled using PQ diameter core (holes DDH-GN-45 and DDH-GN-36).
These two holes were drilled to twin earlier reverse circulation holes. Core recovery in the
diamond holes checked during the field visit appeared to be good. The core was cut using
a core saw.
The drill core which was stored on-site until recently is now housed in a relatively secure,
and reasonably well-ordered facility in Cajamarca (Plate 10-1 in Appendix D). The facility
appears to house the majority of the diamond drill core relating to the North drilling
campaign and also possibly that drilled by Newmont. Also stored are the packets of
sample pulp returned to the company by the analytical laboratory for the North diamond
drill campaign. A number of sacks containing either reverse circulation chips and/or
coarse reject material are also present. The contents of these sacks, which are not
ordered, were not checked by AMEC. Reverse circulation plastic drill chip boxes
containing a spoonful of chips from each two-meter interval are also available.
No information relating to protocols for core handling, geological logging or geotechnical

logging are available. Geological logs exist but there is no record of geotechnical data.

May 2003
TECHNICAL REPORT
12.0 SAMPLING METHODS
The surface sampling program carried out by Newmont comprised 407 samples, which
were predominantly rock chip samples collected from both outcrop and trenches, and a
lesser number of soil samples. North took an additional 270 rock chip samples from
exposures along access roads and drill platforms. In both instances there is no record of a
QA/QC program that may have been initiated as part of this sampling program.
In general, samples collected from the reverse circulation (RC) and diamond drilling
programs were over 2 m intervals. All diamond drill core samples were cut by a core saw,
along the length of the core. One half of the core was collected in sample bags and
shipped for analysis and the other was returned to the core box as a permanent record.
No written descriptions of any sampling methods for the diamond or RC drill campaigns
were available for review. In addition, no information pertaining to the sampling and/or
QA/QC protocols was documented in the reports reviewed by AMEC. However, selected
core boxes reviewed in Cajamarca showed a good standard of core sampling (Plate 12-1
in Appendix D).
Three twin holes were drilled by North in 1997 to 1998. The first, a reverse circulation hole
RCD-GN-11, was drilled to twin the Newmont diamond hole DDH-GN-02. No data is
available for the Newmont holes and, therefore, no comment can be made regarding the
results of the twinning.
In 1998, North twinned two reverse circulation holes RCD-GN-28 and RCD-GN-08, with
two diamond holes, DDH-GN-45 and DDH-GN-46 respectively. Twinned holes DDH-GN-
46 and RCD-GN-08, show some grade differences but, display reasonably similar down-
hole copper trends (Figure 12-1). In addition, the overall weighted averages for copper for
both holes are very similar.
In contrast the down-hole copper profile for diamond drillhole DDH-GN-45 shows marked
differences to the copper profile for the twinned reverse circulation hole RCD-GN-28
(Figure 12-2). This is reflected in the weighted averages for copper for the two holes. The
reverse circulation hole has a weighted average for copper (0.52% Cu over 186 m)
approximately 1.5 times higher than that for the diamond hole DDH-GN-45 (0.35% Cu over
186 m, using SGS laboratory data).

May 2003
TECHNICAL REPORT
Figure 12-1: Comparison of the Cu grades in twin drillholes RCD-GN-08 and DDH-GN-46
Comparison of the Cu grades in twin drill holes RCD-GN-08 and DDH-GN-46
18000
16000
14000
12000
Cu ppm
10000
RC-08 - Cu
8000 DDH-46 -Cu
6000
4000
2000
0
2 16 30 44 58 72 86 100 114 128 142 156 170 184 198 212 226 240 254 268 282
Depth in Meters
Figure 12-2: Comparison of the Cu grades in twin drillholes RCD-GN-28 and DDH-GN-45
Comparison of the Cu grades in twin drill holes RCD-GN-28 and DDH-GN-45
30000
25000
20000
Cu ppm
Geolab-45
15000 RCD-28
SGS-45
10000
5000
0
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94
Depth in Meters

May 2003
TECHNICAL REPORT
North re-analysed samples from DDH-GN-45 at a second laboratory, in order to check the
original core analyses. The results of the re-analyses show a marked similarity with the
primary analyses. However, AMEC cannot confirm whether SGS or Geolab was the
primary laboratory, and whether the samples sent to the second laboratory comprised pulp
or coarse crush duplicates.
An examination of the information recorded in the relevant geological logs does not explain
the disparity between these holes. It is unclear whether the difference between the results
represent a natural and inherent variability in the distribution of the mineralization or
variability introduced by the difference in drilling methodology. Given the similarities
between DDH-GN-46 and RCD-GN-08 the latter seem unlikely, unless the introduced
variation was erratic in manner of occurrence and extent.
North determined that although there were differences in grade associated with the
different drill methods ‘no conclusion could be made regarding the bias with any method’.

May 2003
TECHNICAL REPORT
13.0 SAMPLE PREPARATION, ANALYSES AND SECURITY
It is not clear which laboratories were used, by either Newmont or North, for the
preparation and analyses of samples. Twin hole data reported by North suggests that both
Geolab and SGS were used for twin hole analyses. However, no note is made as to which,
if either, of these laboratories was the primary laboratory. In addition, no information is
documented regarding preparation or digestion and analytical procedures, or internal
laboratory quality control procedures. The analytical certificates were also not available for
review by AMEC.
AMEC recommends that the SGS in Lima should be contacted to see if the analytical
certificates can be located for the drill and surface sampling carried out by North.
No QA/QC samples were inserted into the sample stream during the North reverse
circulation campaign (Webster, 1998). The geochemical drillhole database indicates that
for the diamond drill program carried out by North that standards and blanks were inserted
at a frequency of one in every fifty analytical samples. However, there is no other
information regarding these samples. It is unclear whether the standards and blanks were
internal laboratory or company quality control samples.
No reference is made as to sample security during transportation, or what (if any)

procedures were in place to ensure a ‘chain of custody’.

May 2003
TECHNICAL REPORT
14.0 DATA VERIFICATION
Diane Nicolson, P.Geo., consulting to AMEC (Lima Office) visited the core storage facility
in Cajamarca on the 3rd May, and the Property on the 4th May. Selected drill core was
checked for availability, core recovery, sampling, mineralization, alteration and geology.
The site visit concentrated on reviewing various surface exposures, and also access,
infrastructure and camp facilities. The site visit was somewhat curtailed due to problems
related to the property owner. As such only five hours were spent on site. The property
owner did not accompany the geologist to site. In addition, AMEC reviewed various
historical documents pertaining to the work carried out by both Newmont and North.
During the time spent at the core storage facility and on-site fifteen independent samples
were collected from both the drill core and surface outcrops (Table 14-1, Table 14-2 and
Appendix A). Thirteen of the samples were taken from selected drill core in the form of
chips and pulp. Pulp and core samples were taken from the same intervals for holes DDH-
GN-45 and DDH-GN-46. These were the two diamond holes that were twinned with RCD-
GN-28 and RCD-GN-08, respectively (see Section 12). Kraft bags containing
approximately 250 g of pulp for each interval drilled during the diamond drill campaign
were found at the storage facility. Quarter core samples were taken from the drill core. No
saw was available therefore the core was broken in half along its length. Sampling
covered a range of host rock, alteration and mineralization types, styles and intensities.
Two channel chip samples were taken from the back walls of drill platforms as a check on
the surface sampling carried out by North. In both instances the back walls of the drill
platforms were cleaned prior to the samples being collected.
The fifteen samples were transported to Lima in a secure manner either with the
landowner on the bus, or with the geologist by airplane. The samples were submitted to
the ALS-Chemex Laboratory in Lima where the rock chip samples were prepared by a
standard preparation scheme (see Appendix A). The pulp samples were re-homogenised
prior to analyses.
All samples were analysed for gold by 50 g fire assay with an AAS finish, for Cu by total
acid digestion and AAS, and sequential copper including residual copper at the ALS-
Chemex facility in Lima. As at the time of submittal of the samples to ALS-Chemex no
information was available from the El Galeno Project regarding sequential copper analyses
so an appropriate standard method was acquired from ALS-Chemex in Santiago and
applied. Subsequent to the submittal of the samples to ALS-Chemex AMEC was provided
with additional data on the Property which included a metallurgical report (See, 1998) in
which the results of four sequential copper analyses on reverse circulation drill hole

May 2003
TECHNICAL REPORT
composite samples were reported. However, no details were given pertaining to critical
factors such as the relative strength of the solutions and dissolution times applied during
these analyses.
Packets of pulp were forwarded by ALS-Chemex Lima to their facility in Vancouver where
the pulp samples were further analysed for 47 elements by a combination of ICP-MS and
ICP-AES. A total acid digestion was used.
The detailed analytical protocols used by ALS-Chemex, the analytical certificate, and the
laboratory in-house QA/QC Protocols are given in Appendix A. Although AMEC did not
complete a detailed laboratory inspection of the ALS-Chemex facilities in Lima or
Vancouver as part of this assignment, AMEC has used both of these facilities on numerous
occasions in the past and has previously inspected both facilities. The Lima facility was
audited by AMEC only recently with favourable results. Both the Lima and Vancouver
laboratories are ISO 9002 certified and have a reputation for providing good service.
With regard to the quarter core chip samples there is good correlation for total copper
between those analyses performed by AMEC and those undertaken by North (Table 14-2).
In general the AMEC samples returned marginally higher copper values. This may merely
reflect an inter-laboratory variation related to, for example, variations in the procedures
during sample digestion. In addition, the principle elements such as Mo, Au, Ag, Pb and
Zn also show a reasonable correlation. A few samples exhibit a significant variation in As.
However, this would not be entirely unexpected as the presence of As is related to the
occurrence of early arsenopyrite, and to later sulphosalts. Both these species are not
abundant and may well have an uneven distribution in the host rock.
In addition, the re-homogenised pulp samples show, on the whole, a reasonable to good
correlation to both the original analyses by North, and also to the rock chip samples
analyzed by AMEC.
With regard to the discrepancies described in Section 12, between reverse circulation hole
RCD-GN-28 and the diamond twin DDH-GN-45 (Figure 12-2), the results of the analyses
carried out on the pulp and quarter core chip samples from DDH-GN-45 by AMEC,
although limited, indicate that the results obtained by North for the diamond hole are
probably reliable. However, this does not resolve the dilemma of the discrepancy between
the two drill methods with regard to these holes.
It is strongly advised that the core storage facility in Cajamarca be checked for pulp and/or
reject material from the reverse drilling campaign. If the samples can be located then
selected samples should be prepared and re-analysed at a reputable laboratory with a
good QA/QC program. In addition the samples should be submitted with field blanks (if

May 2003
TECHNICAL REPORT
coarse reject material is available), pulp blanks and certified standard material inserted
blind into the sample chain (see Section 20).
At present the diamond drillhole database cannot be verified. It would therefore also be
advisable to resample selected sections of the drill core and to analyze these samples,
along with any corresponding pulp samples. Again a full QA/QC program should be in
place.
These measures will provide a check on the analytical and possibly the preparation
phases, but will not assist in the identification of problems related to any natural variability
that may exist, or on the quality of the drilling and sampling. In order to check these latter
points a number of reverse circulation drillholes will have to be twinned with diamond
drillholes.
The two rock chip samples taken from the back walls of drill platforms RCD-GN-15 and
DDH-GN-01 also returned similar Cu, Mo, Au etc. especially considering that the samples
intervals used by North could not be accurately located (Table 14-2). This limited sampling
together with a review of selected road cut intervals that were sampled in comparison to
the recorded analytical data, indicate that the surface sampling carried out by North
returned reasonable values.
The sequential copper analyses returned the expected results given the observations
made on the samples. The comparatively high grade of copper dissolution with respect to
the cyanide solution reflects the dominance of covellite and chalcocite in the copper
assemblage. While the significantly lower levels of copper dissolution in the sulphuric acid
solution reflect the presence of only negligible at best, secondary copper minerals such as
copper oxides. Only one sample, AMEC-GN-05, returned any significant copper grade, at
0.42% Cu, as a result of sulphuric acid dissolution. Notably this sample was a pulp sample
originating in the near surface environment where minor secondary copper mineralization
in the form of, for example, secondary copper oxides was occasionally observed. A
percentage of the recorded copper probably also stemmed from minor dissolution of
covellite and chalcocite in the sulphuric acid solution.
The residual copper levels are all low ranging from 0.04% to 0.37% and reflect the
relatively limited presence of chalcopyrite and bornite. The recalculated total copper
values shows good similarities to the total copper as analysed by AAS with a total acid
digestion.
Routine surface and drill sample analyses carried out by both Newmont and North did not
include Sequential and Residual Cu analyses. The only recorded analyses of this type
were done with regard to the four composite samples prepared from reverse circulation

May 2003
TECHNICAL REPORT
samples for metallurgical testing (see Section 16). These analyses again reflect the
prevalence of covellite ± chalcocite over chalcopyrite, bornite or secondary copper
minerals such as copper oxides (Table 14-3). It is recommended that any further analyses
of samples from the El Galeno property be analysed for copper using Sequential Cu and
Residual Cu analyses in addition to Cu analyses by AAS with a total acid digestion.
Description of the various host rocks both from drill core and outcrop appear reasonable.
However, it is recommended that all of the drill core be re-logged, with special attention
being paid to the alteration and to the mineralization. In addition, it would be useful if a
detailed structural map was made over the main area of the El Galeno Property as it is
likely that the structure has an important influence on the distribution of the higher grade
copper mineralization (see Section 20).

May 2003
TECHNICAL REPORT
Table 14-1: AMEC Drillcore, Pulp and Outcrop Sampling (May 2003)
Cu Cu Cu Cu
Sample Sample Au Mo
Location Sample Description Total Cyanide Sulphuric Residual
Number Type ppb ppm
% % % %
Hostrock: Probable porphyritic intrusive with only trace relict texture

Alteration: Relict biotite alteration overprinted by K-feldspar and general weak
sericite-quartz, with stronger selectively pervasive alteration for the fld
phenocrysts to sericite and clay
AMEC-GN-01 DDH-GN-39 13-15m Chips - 1/4 core 0.88 0.678 0.119 0.04 50 94.2
Ground Preparation: Strong stockwork of veins and fractures
Mineralization: Primarily hosted in quartz veins +/- py+/-cpy+/-cv +/- cc, + on
fractures, a lesser component is found disseminated, comprises +5% py,
moderate to strong cv + cc coating sulphides, trace mo, negligible limonites
Hostrock: Porphyritic intrusive
Alteration: Selectively pervasive sericite +/- clay in the feldspar phenocrysts,
AMEC-GN-02 DDH-GN-39 83-85m Chips - 1/4 core silica in the matrix (?) and veins overprinting k-feldspar +/- biotite 1.34 0.909 0.206 0.19 90 92.7
Ground Preparation: Moderate stockwork of fractures and veins
Mineralization: +5% py, +/- moderate cv/cc and trace cpy
Hostrock: Dacite intrusive highly feldspar porphyritic + lesser mafic

phenocrysts
Alteration: Selective semi-pervasive to pervasive sericite-clay alteration of the
feldspar phenocrysts, silica wash to matrix, + minor k-feldspar in around the
AMEC-GN-03 DDH-GN-39 157-159m Chips - 1/4 core veins with occasional patchy weak chlorite 0.44 0.025 0.007 0.369 260 58.8
Ground preparation: Open/weak stockwork of veins +/- fractures
Mineralization: Weak, mainly hosted by quartz veins +/- py-cpy-cc/cv veins,
lesser disseminated
Hostrock: As for sample AMEC-GN-03

Alteration: Strong silicification +/- weak patch K-feld, sericite and chlorite
AMEC-GN-04 DDH-GN-39 401-403m Chips - 1/4 core Ground Preparation: Strong stockwork of quartz veins 0.11 0.014 0.004 0.073 90 29.4
Mineralization: +5% py and <1% cpy mainly hosted in the quartz veins +/- the
silica halos, with a minor disseminated component
AMEC-GN-05 DDH-GN-45 24-26m Pulp Originally as for sample AMEC-GN-05 1.39 0.825 0.415 0.11 80 217
Hostrock:Fine grained sediments (shale/siltstones?)
Alteration: Moderate to strong silica-sericite +/- clay
AMEC-GN-06 DDH-GN-45 24-26m Chips - 1/4 core Ground Preparation: Moderately developed quartz vein stockwork +/- silica- 1.32 1.025 0.135 0.121 70 168
sericite halos
Mineralization: Py, cv + cc occur both hosted in quartz veins + disseminated

May 2003
TECHNICAL REPORT
Cu Cu Cu Cu
Sample Sample Au Mo
Location Sample Description Total Cyanide Sulphuric Residual
Number Type ppb ppm
% % % %
Hostrock: Fine grained sediments (shales/siltstones?)

Alteration: Biotite +/- k-feldspar overprinted by silica-sericite
AMEC-GN-08 DDH-GN-45 148-150m Chips - 1/4 core Ground Preparation: Strong stockwork of quartz veins +/- irregular silica-
sericite halos
Mineralization:Py+/-cpy+/-cv and cc primarily hosted in quartz veins
0.72 0.423 0.119 0.14 50 129
Hostrock: Highly feldspar porphyritic intrusive
Alteration: Selectively pervasive sericite +/- clay in the feldspar phenocrysts,
+/- minor biotite (?), trace epidote around the mafics, silica wash to matrix (?) +
AMEC-GN-10 DDH-GN-46 16-18m Chips - 1/4 core as patchy halos 0.27 0.114 0.077 0.047 130 420
Ground Preparation:Relatively weak stockwork
Mineralization: Py + cpy + cc (?) occur mainly disseminated with a lesser
component hosted in quartz veins
Alteration: Bleached with possible potassic alteration (?), irregular silica-
sericite halos mainly developed at vein intersections
Ground Preparation: Moderate veining, some fracturing
Mineralization: Py 3-5% with patchy minor cpy and cv/cc, lining fractures,
disseminated and in veins

Alteration: Silica-sericite
Ground Preparation: Weak
Mineralization: Py, cc +/- cpy in quartz veins + disseminated
Hostrock: Possibly sediment (?)

Alteration: Strong, no relict texture. Mixed weak-moderate k-feldspar with
Channel chip - patchy overprinting weak-strong sericite-clay-silica
AMEC-GN-14 Backwall for RCD-GN-15 0.28 0.206 0.016 0.041 80 282
2.5m Ground Preparation: Strong stockwork of veins and fractures
Mineralization: Py ~10%, moderate cc/cv + trace cpy (?), hosted in quartz
veins, on fractures and disseminated
Hostrock: Feldspar porphyritic intermediate intrusive

Alteration: Highly weathered with signs of potassic and phyllic alterations
Channel chip -
AMEC-GN-15 Backwall for DDH-GN-01 Ground Preparation: Weak veining and open fracturing 0.06 0.009 0.004 0.042 270 197.5
5.0m
Mineralization: Goe +/- hmt lining fractures, rarely in veins and a minor amount
disseminated

May 2003
TECHNICAL REPORT
Table 14-2: AMEC Analytical Results Compared to North Analytical Results Over the Same Interval
AAS Cu CuCN CuH2SO4 Residual Cu Recalculated ME-MS61 Au-AA26 ME-MS61 ME-MS61 ME-MS61 ME-MS61
Cu Cu Cu Cu Total Cu Mo Au Ag As Pb Zn
% % % % % ppm ppb ppm ppm ppm ppm
AMEC-GN-01 Core Chips - 1/4 core 0.88 0.678 0.119 0.04 0.837 94.2 50 2.45 13.6 26.2 29
DDH-GN-39 13-15m 0.73 78 80 1 35 30 18
AMEC-GN-02 Core Chips - 1/4 core 1.34 0.909 0.206 0.19 1.305 92.7 90 3.05 392 39.7 36
DDH-GN-39 83-85m 1.11 110 130 2 240 29 24
DDH-GN-39 157-159m 0.44 74 270 1 10 17 20
DDH-GN-39 401-403m 0.1 28 70 2 94 13 36
AMEC-GN-05 Pulp 1.39 0.825 0.415 0.11 1.35 217 80 2.02 186.5 52.5 37
AMEC-GN-06 Core Chips - 1/4 core 1.32 1.025 0.135 0.121 1.281 168 70 1.32 58.7 52.6 29
DDH-GN-45 24-26m 1.31 250 80 2 171 50 35
AMEC-GN-07 Pulp 0.66 0.277 0.145 0.21 0.632 117 50 2.94 61.2 24 29
AMEC-GN-08 Core Chips - 1/4 core 0.72 0.423 0.119 0.14 0.682 129 50 4.08 159 25.8 48
DDH-GN-45 148-150m 0.59 140 50 3 77 26 31
AMEC-GN-09 Pulp 0.21 0.078 0.06 0.049 0.187 401 170 2.33 7.6 131 99
AMEC-GN-010 Core Chips - 1/4 core 0.27 0.114 0.077 0.047 0.238 420 130 2.11 11 138.5 164
DDH-GN-46 16-18m 0.19 486 150 2 27 119 87
AMEC-GN-011 Pulp 0.61 0.256 0.117 0.2 0.573 168 90 1.92 26.6 23.6 21
DDH-GN-46 74-76m 0.55 151 80 0.5 40 26 17
DDH-GN-35 58-60m 0.22 65 30 3 476 66 112
AMEC-GN-014 Channel chip - 2.5m 0.28 0.206 0.016 0.041 0.263 282 80 5.63 323 450 44
Backwall for RCD-GN-15 (North)
Samples 19711-19712 0.41-0.49 245-297 67-100 2.8-4.9 220-403 189-628 81-288
AMEC-GN-015 Channel chip - 2.5m 0.06 0.009 0.004 0.042 0.055 197.5 270 3.05 275 101 9
Backwall for DDH-01 (Newmont)
Samples 19773 0.05 153 163 1.2 156 75 25

May 2003
TECHNICAL REPORT
Table 14-3: Diagnostic Leach Analysis on Four Composite Reverse Circulation

Samples (See, 1998)
Sample TAL-5 TAL-15 TAL-30 TAL-31
Cyanide Soluble Copper (% of total copper) 86.8 85.6 54.6 77.1
Conc. Sulfuric Acid Soluble Copper (% of total copper) 4.0 1.4 3.0 1.7
Hydrochloric Acid Soluble Copper (% of total copper) 6.6 5.8 25.7 12.7
Residual Copper (% of total copper) 2.6 7.2 16.6 8.5
Total Floatable Copper (% of total copper) 89.4 92.8 71.3 85.6
Total Soluble & Residual / Assay Head (%) 98.4 100.3 95.0 98.4

May 2003
TECHNICAL REPORT
15.0 ADJACENT PROPERTIES
The adjacent El Molino Property is primarily of significance due to its location with respect
to the development of the El Galeno system. As illustrated in Figure 6-1, because the El
Galeno porphyry system abuts the El Molino Property boundary the development of an
open pit and related infrastructure may require access to the El Molino claim.
In addition there is a gold play on the El Molino property proximal to the El Galeno claim
boundary.

May 2003
TECHNICAL REPORT
16.0 MINERAL PROCESSING AND METALLURGICAL TESTING
Preliminary, metallurgical testwork was conducted by North on four reverse circulation drill
chip samples from holes that had been drilled twelve months prior (See, 1998). The
objective of the testwork was to estimate acid leach recoveries, reagent consumption,
flotation recoveries and concentrate grades. The results were used in the conceptual
resource and financial modelling.
In the interim period between drilling and metallurgical testwork the samples were stored
undercover, on-site, in closed plastic bags. Sample descriptions are given in Table 16-1.
Table 16-1: Metallurgical Sample Description

Drillhole Interval Mineralization Alteration Hostrock
TAL-5 82 m – 102 m 1-2% chalcocite /covellite Phyllic Quartz diorite
TAL-15 22 m – 38 m, 78 m – 108 m, 110 m 1-2% pyrite/ chalcopyrite/ Phyllic Quartzite
– 126 m and 214 m – 238 m chalcocite mineralogy
TAL-30 54 m – 88 m 1% chalcocite / covellite Silicification Quartz diorite
TAL 31 02 m – 118 m 1 – 2% chalcocite/ covellite Phyllic Quartz diorite
Mineralogic details of the samples are given in Table 16-2, and assay data in Table 16-3.
Mineralogically the dominant copper mineral in three of the samples was covellite and in
the fourth was chalcopyrite. Molybdenite appeared in minor amounts in all the samples,
while pyrite was the dominant sulphide. The presence of tetrahedrite and/or tennantite and
enargite suggests that vigilance should be practised with regard to arsenic and/or antimony
levels with respect to copper flotation concentrates.
Table 16-2: Mineralogy of the Metallurgic Samples

Sample Main Cu Other Cu Minerals Other Gangue Pyrite
Mineral Valuable Liberation Liberation
Minerals Size (µm) Size (µm)
TAL-5 Covellite Tetrahedrite Molybdenite 106 75

Chalcopyrite
bornite
TAL-15 Covellite Tetrahedrite Molybdenite >150 <38
Chalcopyrite
Bornite
TAL-30 Chalcopyrite Covellite Molybdenite 106 38

TAL-31 Covellite Chalcopyrite Molybdenite 106 <38
Digenite
Tetrahedrite
Bornite
Enargite

May 2003
TECHNICAL REPORT
Table 16-3: Head Assays for the Metallurgical Samples

Assay Units TAL-5 TAL-15 TAL-30 TAL-31
Total Copper (duplicate average) %Cu 0.76 0.68 0.68 1.21
Oxide Copper (dilute sulphuric acid soluble) %Cu 0.2290 0.0980 0.0660 0.1480
Gold (duplicate/triplicate average) g/t Au 0.19 0.07 0.22 0.27
Silver (duplicate average) g/t Ag 2 6 3 4
Iron (duplicate average) %Fe 2.20 4.07 3.04 2.21
Iron (acid soluble) %Fe 0.1650 0.0915 0.1500 0.1200
Carbon (total) %C 0.04 0.04 0.04 0.05
Carbonate %CO3 <0.1 <0.1 <0.1 <0.1
Sulfur (Leco) %S 1.80 4.80 3.05 2.65
ICP Scan (semi-quantitative)
Arsenic ppm As 225 429 65 278
Bismuth ppm Bi <5 <5 <5 <5
Cadmium ppm Cd <<5 <5 <5 <5
Cobalt ppm Co 9 13 23 10
Chromium ppm Cr 63 79 76 61
Molybdenum ppm Mo 41 78 170 42
Nickel ppm Ni <5 18 12 9
Lead ppm Pb 42 365 38 32
Sulfur %S 1.33 3.94 2.30 2.20
Antimony ppm Sb 60 76 <10 18
Strontium ppm Sr 72 17 36 43
Vanadium ppm V 40 45 43 34
Zinc ppm Zn 61 183 33 48
Zirconium ppm Zr <10 <10 <10 <10
Alumina %Al2O3 15.1 7.38 9.90 8.75
Calcia %CaO 0.01 <0.01 0.02 0.03
Iron (as hematite) %Fe2O3 3.21 5.81 4.46 3.38
Potassia %K2O 5.49 2.59 5.05 4.74
Magnesia %MgO 0.53 0.18 0.32 0.30
Manganese (as manganese oxide) %MnO 0.02 0.01 0.01 0.01
Phosphorus (as phosphorus pentoxide) P2O5 0.12 0.07 0.08 0.07
Silica SiO2 69.6 78.1 75.0 77.7
Titanium (as titanium oxide) TiO2 0.35 0.5 0.6 0.27
Total 99 104 102 101
The recorded low oxide/chalcocite content is not auspicious for a heap leach approach.
This is borne out by the failure of the straight acid leach tests when no oxidant was added.
Chalcocite is normally expected to be leachable in a heap leach process, whereas covellite
is not as easily attacked, and recoveries from the leaching of chalcopyrite are likely to be
less than 50%.
The Property site is at high elevation and can be subject to seasonally high rainfall. Heap
leach operations in an area with heavy rainfall may encounter water balance problems,
and the operator may have to treat or store large volumes of contaminated runoff from the

May 2003
TECHNICAL REPORT
heaps. Low oxygen partial pressure at altitude may extend leach cycles but should not
inhibit ultimate extraction. Leach cycles of several hundred days may be required and
aeration would need to be installed to ensure adequate oxidation takes place throughout
the heaps.
However, the cyanide-soluble copper assays were in the range 77 to 87% of the total
copper in three of the four samples (Table 14-3). This portion of the copper at least should
be relatively easy to leach in an oxidative leaching process when dealing with either heap
or concentrate leaches. Heap leach processing would not normally permit recovery of gold
or silver.
Both the described Intec and CESL processes are still considered developmental and
require the production of a flotation concentrate in advance of hydrometallurgical
processing (Section 6). AMEC believes that the CESL process has been more extensively
tested than Intec, and is less innovative and therefore, less risky. The CESL process,
however, cannot recover gold and silver without a rather expensive technology add-on.
Other concentrate leaching approaches that might be considered for these concentrates
include the Dynatec process (pressure leaching) and the Albion process (fine grinding and
ferric leaching).
See, 1998 reports that for flotation concentrate grades are fair to good, and that credits
could be expected for gold and silver concentrates. In addition, molybdenum was high
enough in three out of the four samples to indicate that the production of a molybdenum
concentrate could be a possibility. Analyses of the concentrates show a number of penalty
elements at or above normal penalty limits, for example, arsenic, antimony and mercury.
The presence of arsenic, antimony and mercury creates the potential for environmental
problems. However, both heap and concentrate leaching processes involving these
elements have been commercialized and can be completed without undue environmental
damage or economic penalty.
In conclusion it appears that each potential approach has its drawbacks. Heap leaching
will not recover gold or silver, and copper recoveries from chalcopyrite will be poor. With
only a minor oxide content oxidation will be required, and forced aeration of the heaps will
probably be necessary. In addition leaching cycles will probably be of long duration.
However, the presence of pyrite should lead to acid generation in-situ, so acid
consumption costs might be moderate.
The sale of a flotation concentrate to a smelter should permit some payment for gold and
silver, but may suffer penalties due to Hg, As and Sb. However, there are leaching
methods available to reduce mercury, arsenic and antimony in copper concentrates prior to

May 2003
TECHNICAL REPORT
sale to a smelter. In addition the production of by-product MoS2 could improve the
economics.
The CESL or Intec treatment of flotation concentrates could probably deal with the
mercury, arsenic and antimony content, but the recovery of gold and silver with the CESL
process is likely to be expensive. Both these processes are commercially unproven, the
Intec process representing a greater departure from conventional practice and therefore
represents the higher risk option.
A full review of the cost estimates presented by White Metallurgical, 1988, has not been
carried out by AMEC. However, the techniques used are appropriate for the stated
preliminary estimates, and the quoted costs do not appear unreasonable for the facilities
described.

May 2003
TECHNICAL REPORT
17.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES
AMEC reviewed two historic resource estimates completed by North on the porphyry
mineralization at El Galeno.
17.1 Inverse Distance Squared Estimate (North 1998)
The first estimate was very preliminary in nature and was based on the 38 drillholes (30
RC and 8 diamond drillholes) that had been drilled on the property at that time. Of these
holes, 36 were drilled vertically to maximum depths of 300 m and averaging 100 m in
depth. Drill spacing was between 200 and 300 m, particularly in the central portion of the
mineralized zone. The sample database included 3,697 samples, which averaged 0.36%
Cu and 0.13 g/t Au. Statistical analysis showed that there was no apparent correlation
between the copper and gold grades.
Bulk density measurements were not carried out as part of the estimate and an average
specific gravity of 2.7 was assumed. The estimate was completed using a block model
with the inverse distance squared interpolation method, using a horizontal and vertical
search ellipse of 250 m and 25 m, respectively. According to North, the insufficient amount
of data and large drillhole spacing precluded them from classifying this as an Indicated
resource, as per the Australian JORC reporting code. North suggested that once specific
gravity measurements were completed and QA/QC data incorporated, the resource could
be possibly be classified as Inferred, but for now North classified the mineral resource
estimate as a “guide to possible grades and tonnes”. North’s interpretation of the data
indicated that the mineralization was still open at depth.
AMEC was only able to review North’s in-house conceptual study, which contained a short
summary of the modeling exercise with brief descriptions of the estimation methods and
results (Webster, 1998a). No section or plan plots, spreadsheets/tables, or digital copies
of the block model were available for review. AMEC did not conduct an audit or review of
the mineral resource estimate directly.
AMEC considers the North estimate to be a historical estimate and results are summarized
in Table 17-1.

May 2003
TECHNICAL REPORT
Table 17-1: Historical Unclassified Resource Estimate – Inverse Distance Squared

Method (Webster, 1998a)
Cut-off Grade Tonnage Cu Au

(% Cu) (Mt) (%) (g/t)
0.4 350 0.6 0.17
0.5 260 0.7 0.17
0.6 180 0.8 0.18
0.7 100 0.9 0.18
0.8 55 1.0 0.18
1.0 15 1.1 0.20
17.2 Ordinary Kriging Resource Estimate (North 1998)
The second estimate completed by North used an Ordinary Kriging method, which treated
copper and gold grades separately (Webster, 1998b). This estimate was completed after a
17 hole diamond drill program, and incorporated a total of 46 drillholes (30 RC and 16
diamond drillholes). Two of the holes twinned previously drilled RC holes as a check on
the grade variability (see Section 11). North’s interpretation of the twinned holes was
inconclusive.
In general, drilling was on 100 m spaced section lines, with greater than 200 m hole
spacing along each line. North stated that this drill hole spacing was still insufficient to
confidently define the geology and mineralization. Statistics were run on a total of 5,844
copper and gold samples and 5,454 arsenic samples. The mean copper, gold, and arsenic
values were 0.32%, 0.14 g/t and 290 ppm, respectively. Little correlation was found
between the three elements. However, there is a slight trend for the higher arsenic grades
to be associated with the lower gold and copper grades.
A search ellipse of 350 by 300 by 50 metres oriented at 45° to the east was used. In
North’s opinion this large search ellipse was necessary due to the large spacing between
drillholes and to ensure that more than one hole was available for the estimation of each
block. A sector search and maximum samples per single hole was incorporated to prevent
a single hole supplying all the data for the estimation of any block. North believed that
further drilling was needed to confirm the estimated grades. Due to several uncertainties
that remained with the database including, wide spaced drilling, an estimated bulk density
of 2.7, limited geological data and the large search ellipse, North classified the resource as
Inferred, as shown on Table 17-2.

May 2003
TECHNICAL REPORT
Table 17-2: Historical Inferred Mineral Resource Estimate – Ordinary Kriging Method
(Webster 1998b)
Cutoff Grade Tonnage Cu Au

(% Cu) (Mt) (%) (g/t)
0.4 486 0.57 0.14
0.5 288 0.66 0.16
0.6 170 0.75 0.17
0.7 94 0.83 0.18
0.8 45 0.92 0.18
1.0 9 1.1 0.20
Again, AMEC was only able to review North’s in-house study, which contained a short
summary of the modeling exercise with brief descriptions of the estimation methods and
results (Webster, 1998b). No section or plan plots, spreadsheets/tables, or digital copies
of the block model were available for review. AMEC did not conduct an audit or review of
the mineral resource estimate directly.
AMEC considers the historic estimate to be an Inferred Mineral Resource (Table 17-2).

May 2003
TECHNICAL REPORT
18.0 OTHER RELEVANT DATA AND INFORMATION
AMEC is in possession of only a portion of the data related to exploration activities on the
El Galeno Property. Significant parts of the data were not available for review.

May 2003
TECHNICAL REPORT
19.0 REQUIREMENTS FOR TECHNICAL REPORTS ON PRODUCTION

AND DEVELOPMENT PROPERTIES
This section is not applicable.

May 2003
TECHNICAL REPORT
20.0 CONCLUSIONS AND RECOMMENDATIONS
20.1 Conclusions
The El Galeno Property is host to a porphyry copper hydrothermal system of moderate

dimensions. The hypogene grade of the deposit is low, however, a period of enrichment
resulted in significant covellite and/or chalcocite deposition within a thick sub-horizontal
zone of elevated copper grades. The system lacks a leached cap and oxide zone.
AMEC considers that the copper enrichment may be related to hypogene or supergene
processes. The majority of the information supplied to AMEC indicates that chalcocite is
dominant over covellite in the El Galeno system, and that both minerals, and other
subordinate late copper phases represent a supergene enrichment event. The leached
cap and oxide zone, and presumably part of the chalcocite enrichment blanket have been
removed by erosion leaving deeper portions of the system exposed at surface. The
eroded material may be an additional exploration target.
The currently available data does not allow a categoric decision to be made concerning
hypogene versus supergene enrichment. Further work and re-assessment of existing drill
core would be required to resolve this point.
Factors that support a hypogene origin for the enrichment event are:
• The rate of erosion required to have removed the leached cap, the oxide zone and also
possible part of the enrichment blanket was probably too rapid to have permitted the
development of a suitable chemical profile adequate for the development of supergene
enrichment.
• Reported textures in the petrologic reports suggest that covellite ‘co-exists’ with
chalcocite and digenite, rather than being replaced by chalcocite or digenite. If copper
rich, low temperature solutions typical of the supergene environment encounter
covellite, covellite is not stable and readily converts to chalcocite. However, in the
higher temperature hypogene environment covellite is stable when exposed to copper
enriched solution, and as such chalcocite or digenite tend to precipitate directly rather
than forming through the alteration of the covellite (Chavez, pers. comm.).
• The deposit lacks a defined stratigraphy with regard to the distribution of the covellite,
as would be expected for covellite in supergene enrichment hosted by non-reactive
rocks such as the phyllic alteration in the El Galeno system (Chavez, 2000).

May 2003
TECHNICAL REPORT
• The presence of tetrahedrite and tennantite is indicative of a hypogene enrichment

episode. Both these sulphosalts are quickly replaced in the supergene environment,
but at El Galeno only show only minor (?) replacement by covellite and chalcocite.
The late stage copper enrichment phase, if hypogene, may have resulted from chalcopyrite
leaching (Birmhall, 1979), and/or through additional copper being added to the system
(Dick et. al., 1994). Copper concentrations in the late fluids appear to have been
sufficiently copper enriched to have resulted in significant covellite deposition, but not
sufficiently enriched to have led to the deposition of widespread chalcocite or digenite.
Hypogene enrichment is characteristically associated with the boundary between the

phyllic and the advanced argillic zone, and is sometimes largely hosted by the latter
(Birmhall and Ghiorso, 1983). The enriched areas in the El Galeno system are reported to
have a closer relation with intense phyllic alteration. If the enrichment in the El Galeno
system does represent hypogene enrichment than the moderate to low levels of
enrichment may reflect the reported paucity of advanced argillic alteration.
Although previously completed geological reports indicate a greater presence of chalcocite

than covellite in the deposit, metallurgical and petrological reports, and also initial
observations made by AMEC suggest that covellite may well be the dominant phase. The
mineralogy of the enriched copper zone obviously influences the metallurgy and as such
any proposed mineral processing scheme. Preliminary metallurgical testing completed by
North in 1998, yielded poor copper recoveries using a straight acid leach, reflecting the
minor oxide copper component in the deposit. In contrast, results of the cyanide-soluble
leach tests were encouraging with three out of four of the metallurgical samples returning
77% to 87% recovery of the total contained copper. However, a note of caution must be
expressed, as the acid concentration and leach time were not disclosed in North’s report.
Two concentrate leach options were tested by North, neither of which are in commercial
use. AMEC favour the CESL process over the Intec process as the former has been more
extensively tested. However, AMEC suggests that future metallurgical testing should also
consider the Dynatec (pressure leaching) and the Albion (fine grinding and ferric leaching)
options.
The following factors adversely impact the effort to classify the resource at El Galeno, as
no documentation pertaining to these subjects was available for examination:
• A lack of data relating to whether the drill samples were obtained by industry standard
core and reverse circulation drilling and sampling techniques
• Omission of data relating to which laboratories were used and whether they operated
to industry standards

May 2003
TECHNICAL REPORT
• An absence of any description relating to sample preparation and analytical

procedures
• A lack of any analytical certificates to assist in the verification of analytical database
In addition, to the above points the absence of any sequential copper analyses, during all
the three drill campaigns, means that the distribution of non-soluble, soluble and oxide
copper is unknown. Also, AMEC consider that the structural controls on the deposit may
well have had a greater influence on grade distribution than previously considered, and the
deposit may well be less homogenous than it is generally perceived to be.
Another cause for concern with regard to the resource estimate is that the estimation
incorporates a significant amount of data from the reverse circulation drill campaign. As
discussed previously there were discrepancies in the copper grade between one of the
reverse circulation drillholes and its diamond twin, while the copper grades in the other
diamond twin drilled showed good correlation to the original reverse circulation copper
grades. This discrepancy has yet to be resolved, and will require additional diamond
drillhole twins of existing RC holes during the next drill phase. Until this is complete a
degree of uncertainty remains regarding the RC drilling methods and results at El Galeno.
Both of North’s mineral resource estimates on the Galeno Property are considered by
AMEC to be historical estimates because they were completed prior to the implementation
of NI43-101 and the publication of the CIM definitions for disclosure of mineral resource
estimates. Geologic continuity is a pre-requisite for classification as an Inferred Mineral
Resource according to the guidelines within the CIM Standards on Mineral Resource and
Reserves, therefore AMEC has recommended work to confirm that the mineralization at El
Galeno can be classified as Inferred in accordance with NI43-101. In addition,
inadequacies or apparent problems with the sample and analytical database should be
resolved.
In AMEC’s opinion a Historical Inferred Resource Estimate completed by North in 1998

and using the Ordinary Kriging method may be quoted as 486 Mt grading 057% Cu and
0.14g/t Au, at a cut-off grade of 0.4% Cu for total contained copper. The grades and
tonnages vary according to this estimation for different cut-off grades as given in Table 17-
2.
The mineralization can be made to conform with NI43-101 by the re-sampling and/or re-
analyses of drill core (and reverse circulation drill chips if available), with the drilling of a
number of additional twin holes, and by implementing a full quality control/quality insurance
program.

May 2003
TECHNICAL REPORT
Based on the information reviewed by AMEC, the limits of the El Galeno porphyry system
have been relatively well defined, and the potential for expanding the system within the
areas of the Property is considered to be restricted. However, there are a number of
identified targets that require field investigation and possibly follow-up exploration.
20.2 Recommendations
AMEC considers that the Property is of sufficient merit to warrant a work program of
approximately US $300,000 (Table 20-1). The initial success of the program (or lack
thereof) will depend on the distribution, the absolute and relative abundances of the main
copper phases, a new resource estimate and the identification of a suitable metallurgical
method for processing the material.
Recommended Work Program
The main objective of the work program is to validate the existing sample database from
the drillholes in the higher grade Central Zone of the deposit, and to establish if this data
can be incorporated into a new mineral resource estimate (Figure 20-1).
• At least 50% of the 1,252 core samples collected by North from the seven diamond
drillholes into the Central Zone should be selected for re-analyses. The samples
should represent different grades and mineralization types and styles, varying
alteration assemblages and also the different host rocks. If core, coarse reject and
pulp samples can be located for the selected samples then the final analytical batch
should reflect all three of these components in a proportional manner.
A rigorous quality control/quality assurance program should be set up which should
include duplicate core samples, geological blanks, preparation duplicates, pulp
duplicates, and suitable multi-element standard reference material inserted at a
frequency of one per twenty samples. In addition, five percent of all pulps should be
sent to a second laboratory for analyses. The same quality control samples at the
same frequency should also be submitted to the second laboratory. The insertion of
sample duplicates, geological blanks and standard reference material should be blind
to the laboratories.

May 2003
TECHNICAL REPORT
Table 20-1: Budget for Recommended Work Program

WORK PROGRAM US $
Analytical (core re-anlayses and/or resampling) 788 samples (incld. 162 QC sample) @ 41.5 US$/sample 32,702
Diamond drilling:
Twin Holes 900m @ 130 US$/m 117,000
Analytical (drilling related)
Twin Holes 567 samples (incld. 117 QC samples) @ 41.5 US$/sample 23,531
Metallurgical Testwork 20,000
Professional Staff 1 senior geologist: 2 months @ US$ 6,500/month 13,000
1 junior geologist: 2 months @ US$ 3,000/month 6,000
General Labour 2 technicians: 2 months @ US$ 1,000/month 4,000
Bulldozer 50 hours 2,500
Surveying 1,000
Accomodation/Food 6,000
Vehicles 5,000
Equipment and related Expenses 3,000
Miscellaneous (flights etc.) 4,000
Resource Estimation 35,000
SUBTOTAL US$ 272,733
Contingency (~10%) US$ 27,273
TOTAL APPROXIMATELY US$ 300,006
Note: Please note that analytical costs for each sample include: Preparation US $7.00, Cu AA with a four acid digestion US $9.00,
Au 50 g FAS US $9.0, and Multielement ICP-AES with a near-total acid digest and Hg by cold vapour US $12.
Table 20-2: Follow-up Work Program

WORK PROGRAM US $
Diamond drilling
Infill Holes 1500m @ 130 US$/m 195,000
Additional Twin Holes 1500m @ 130 US$/m 195,000
Analytical (drill-related)
Infill Holes 945 samples (incld. 195 QC samples) @ 41.5 US$/sample 39,218
Additional Twin Holes 945 samples (incld. 195 QC samples) @ 41.5 US$/sample 39,218
Professional Staff 1 senior geologist: 3 months @ US$ 6,500/month 19,500
General Labour 2 technicians: 3months @ US$ 1,000/month 6,000
Bulldozer 50 hours 2,500
Surveying 2,500
Accomodation/Food 9,000
Vehicles 7,000
Equipment and related Expenses 5,000
Miscellaneous (flights etc.) 6,000
SUBTOTAL US$ 525,936
Contingency (~10%) US$ 52,594
TOTAL APPROXIMATELY US$ 578,530
Note: Please note that analytical costs for each sample include: Preparation US $7.00, Cu AA with a four acid digestion US $9.00,
Au 50 g FAS US $9.0, and Multielement ICP-AES with a near-total acid digest and Hg by cold vapour US $12.

May 2003
TECHNICAL REPORT
The samples should be sent to internationally recognized and ISO 9001 certified
laboratories that meet industry standards and have a good internal quality
control/quality assurance programs. Both the primary and the back-up laboratories
should be audited.
During sample transportation from Cajamarca or the El Galeno site to the laboratory in
Lima a secure ‘Chain of Custody’ should be established.
Preparation and analytical methods should be clearly and precisely stipulated to both
laboratories. Analyses should include sequential copper and residual copper analyses,
copper by AAS with a total acid digest, gold by 50g FAS with an appropriate finish for
the grade of gold, and ICP analyses for elements such as molybdenum, arsenic,
antimony and mercury, again with a total acid digestion.
• If the drill core from the Newmont exploration program can also be located, the two
holes that were drilled in the Central Zone should be re-sampled in the same manner.
Costs for re-sampling and analyses of the Newmont core is not included in the cost
summary in Table 20-1, as information available to AMEC indicates that the core may
not exist.
• A number of representative diamond drill core composite samples from throughout the
Core Zone should be collected for further metallurgical testwork. The testwork should
investigate the various copper-gold-molybdenum recovery options and presence and
abundance of deleterious elements.
• Three of the reverse circulation drillholes from the Central Zone should be twinned with
additional diamond drillholes. The holes should be continued to a minimum depth
equal to that of the depth of the original reverse circulation holes, or deeper if the holes
are still in enrichment. For the purpose of calculating the costs given in Table 20-1 a
depth of 300 m for each of these three holes is used.
In Figure 20-1 three reverse circulation drillholes for twinning with diamond holes are
suggested. However, which holes are ultimately chosen will depend in part on the
results of the re-sampling and/or re-analyses of the diamond core samples as
discussed above.
• A full set of statistical analyses should be completed on the resulting re-sampling data.
• All drill campaigns should be subject to a rigorous program of quality control and
quality assurance that includes, for example, handling and sampling of the core to
accepted industry standards, and also the issues outlined above with regard to sample
transportation, preparation and analyses, and the insertion of control samples in the
sample stream. Preparation and analytical methods should be as described above.

May 2003
TECHNICAL REPORT
• If the diamond twin holes return reasonably similar analytical results to the original
reverse circulation holes which they are twinning, then selected samples from the
remaining five reverse circulation drillholes drilled by North into the Central Zone,
should also be re-analysed (Note: these samples and their corresponding rejects and
pulps may no longer exist, however every attempt should be made to find them in both
the Cajamarca and El Galeno camp facilities). If located, the samples should be
treated similar in a similar manner to the diamond drillhole samples with respect to
transportation, preparation, analyses and control samples.
Costs related to analytical checks on the reverse circulation holes located in the
Central Zone reverse are not included in the cost summary in Table 20-1, as the
information available to AMEC indicates that suitable material may not exist.
• A detailed structural understanding of the deposit should be established from surface

exposure and drill core to assist in the definition of the mineralization, and so that any
future drill core dips and dip directions can be optimised.
• All drill core drilled by Newmont and North should be re-logged.
The key tasks are as follows:
• Re-sampling and/or re-analyses of selected intervals from the diamond drillholes drilled
into the Central Zone (the area of highest copper grade)
• Twinning of three of the reverse circulation drillholes in the Central Zone
• Additional metallurgical testing
• Re-logging all existing drill core
• Detail structural mapping over the main area
• Sampling, sample transportation, sample preparation and analyses should include a

rigorous quality control and quality assurance program
• Obtain remaining documentation on previous programs from laboratories used
• That any future analyses include sequential copper and residual copper analyses
• Complete a mineral resource estimate.
Follow-up Work Program
Further work would be contingent upon satisfactory results from the initial program. AMEC
has defined a drill program which will decrease hole spacing to establish a 200 m by 200 m

May 2003
TECHNICAL REPORT
grid on the Central Zone. The approximate cost is US $580,000 and should be
accompanied by pre-feasibility or feasibility studies as appropriate.
• A further 5 drillholes should be drilled in the Central Zone in order to form a 200 m by
200 m drill grid. This will involve approximately 1,500 m of drilling and 750 samples
(Figure 20-1).
• In the case that the three diamond drillholes twinning the reverse circulation drillholes
(in the initial work program) give significantly different results, then the remaining five
reverse circulation holes, that are without diamond hole twins should also be twinned.
All drilling and sampling campaigns should be subject to a rigorous program of quality
control and quality assurance. Analyses should be as outlined for the diamond drillhole
samples in the initial work program.
AMEC recommends the initial US $300,000 work program should be completed at this
time.

May 2003
TECHNICAL REPORT
21.0 REFERENCES
AGRA, July 2000. Review of Regional Integration, Phase I, Galeno project, Cajamarca-
Peru. AGRA Company Report U581A, North Compania Mineria S.A.
Bellés J.G., 199?a. Descripción de dos Muestras Petrográficas en el Sector Brechado de

‘’El Molino’’. North Compania Mineria S.A.
Bellés J.G., 199?b. Estudio geoquimico de 21 Muestras petrológicas Proyecto de Porfido

de Cu ‘’El Galeno’’. North Compania Mineria S.A.
Bellés J.G., 199?c. Estudio Pertrográfico de alteraciones en los Sondes DDH-GN-35 a

DDH-GN-44, Proyecto El Galeno. North Compañia Minera S.A.
Birmhall G., 1979. Lithologic Determination of Mass Transfer Mechanisms of Multiple-

Stage Porphyry Copper Mineralization at Butte, Montana: Vein Formation by
Hypogene leaching and Enrichment of Potassium-Silicate Protore. Econ. Geol., Vol.
74, pp. 556-589.
Birmhall G. and Ghiorso M., 1983. Origin and Ore-Forming Consequences of the
Advanced Argillic Alteration Process in Hypogene Environments by Magmatic Gas
Contamination of Meteoric Fluids. Econ. Geol. Vol. 78, pp.73-90.
Buenaventura Ingenieros S.A., April 1998. Estudio al Microscopio de 12 Secciones Pulidas

de Taladros de Perforación. North Compañia Minera S.A.
Chavez W.X., 2000. Supergene Oxidation of Copper Deposits: Zoning and Distribution of
Copper Oxide Minerals. SEG Newsletter, Number 41.
Córdova J. and Hoyos D., June 1999. Proyecto El Galeno – Informe Geológico. North
Compañia Minería S.A.
Córdova J. and Hoyos D., July 2000: Proyecto El Galeno – Informe Geológico. North
Compañia Minera S.A.
Dick L., Chavez W,, Gonzales A. and Bisso C., 1994. Geological Setting and Mineralogy of
the Cu-Ag-(As) Rosario vein System, Collahuasi District, Chile. SEG Newsletter,
Number 19.
MEM, 1998. Plan Referencial de Minería (Visión y perspectivas de la industria en el Perú),

1996-2006

May 2003
TECHNICAL REPORT
MEM, 1998, Environmental Regulations for Mining Exploration Activities, DS No. 038-98-
EM, www.mem.gob.pe
MEM, 1992, Environmental Protection Regulations in the Mining-Metallurgical Activity, DS

No. 014-92-EM, www.mem.gob.pe
Metcon Laboratories, August, 1988. Preliminary Metallurgical Testwork with Sample of El

Galeno Ore. North Compañia Minera S.A. internal report
Mineria Magazine, Feb 2003, Issue 23, page 305
Mining Magazine, Jan 2002, Peruvian Mining Industry, Vol 186, No. 1
Mining Magazine, May 2002, Latin American Gold and Silver, Vol 186, No. 5
Mukasa, S.B., Vidal, C.E., and Injoque-Espinoza, J., 1990, Pb Isotope Bearing on the
Metallogenesis of Sulphide Ore Deposits in Central and Southern Perú, Economic
Geology, vol 85, 1990, pp. 1438-1446.
Noble, D.C. and Vidal, C.E., 1994, Gold in Perú; SEG Newsletter, April 1994
Panteleyev, A. 1995. Porphyry Cu+/-Mo+/-Au, in Selected British Columbia Mineral

Deposit Profiles, Volume 1 - Metallics and Coal, Lefebure, D.V. and Ray, G.E.,
Editors, British Columbia Ministry of Energy of Employment and Investment, Open
File 1995-20, pages 87-92.
Peterson, U., Vidal C.E., and Noble D.C., 1990, A Special Issue Devoted to the Mineral
Deposits of Peru Preface, Economic Geology, Vol. 85, November 1990, No. 7
See A., September 1998. El Galeno Metallurgical Testwork Review and

Recommendations. North Ltd.
Tanabe H., Franco J., and Carbone J., November 1995. Prospecto El Galeno, Final
Report. Internal Report for Newmont Peru Ltd. (the Newmont-Buenaventura Joint
Venture).
Unknown author, 1999. INAA Results 1999. North Compañia Minera S.A.

May 2003
TECHNICAL REPORT
Vidal, C.E., 1985, Metallogenesis associated with the Coastal batholith of Peru; A review,
in Pitcher, W.S. Atherton, M.P., Cobbling, E.J., and Beckinsale, R.D., eds.,
Magmatism at a plate edge: The Peruvian Andes: Glasgow, Blackie, p. 243-249.
Vidal, C.E., D. Noble, and B. Harvey, 1997, Peruvian Geological Congress Fieldtrip,
August 3 to 10, 1997, Yanacocha District, Cajamarca Province, Peru
Webster R., April 1998a. Galeno Conceptual Study. Internal report for North Ltd.
Webster R., September 1998b. Galeno Re-evaluation based on an additional 12 holes.

Internal report for North Ltd.
White Metallurgical Services PTY LTD, March 1998. Estimation of Process Plant Operating
and Capital Costs for the Galeno Project. North Compañia Minera S.A.
?, June 1998. Estudio al Microscopio de 24 Muestras (secciones delgadas) de Taladros

Diamantinos, RCD y Muestra de mano del Proyecto Galeno. North Compañia Minera
S.A.

May 2003
TECHNICAL REPORT
APPENDIX A
AMEC INDEPDENDENT SAMPLES
AMEC Independent Samples: ALS-Chemex Analytical Certificate

Analyses Summary Tables
ALS-Chemex Sample Preparation Protocols
ALS-Chemex Sample Analysis Protocols
Technical Report
Project No. U954C Appendices
May 2003
PROCEDIMIENTO DE PREPARACIÓN DE MUESTRAS
Código : PREP-31
Tipo de muestras : Rocas , Testigos, RC
Recepción y ordenamiento
de muestras
Secado 110 °C +/- 10

y pesado
Limpieza de la maquina
chancadora con material
inerte
Chancado (toda la Control de calidad

muestra ) 70 % malla- 10 de chancado
Cuarteo de 250 g Almacenamiento

rechazo grueso
Pulverizado (LM2) Control de calidad

85% malla -200 de pulverizado
Ensobrado de muestras
para su análisis
ALS Chemex
Code Description
SAMPLE PREPARATION - ROCKS & CORES
PREP – 31 Dry; crush entire sample to 70% -2 mm (-10 mesh); riffle split to obtain
approximately 250 g; pulverize the sub-sample to 85% -75 microns
(200 mesh)
Fire Assay Procedure – Au-AA23 and Au-AA24
Fire Assay Fusion
Sample Decomposition: Fire Assay Fusion

Analytical Method: Atomic Absorption Spectroscopy (AAS)
A prepared sample is fused with a mixture of lead oxide, sodium carbonate, borax,
silica and other reagents as required inquarted with 0.4 ml AgNO3 and then
cupelled to yield a precious metal bead.
The bead is digested for 2 min. (microwave) in dilute nitric acid. Hydrochloric acid
is then added and the solution is digested for an additional 2 min. (microwave). The
digested solution is cooled, diluted to 4 ml with demineralized water, homogenized
and then analyzed by atomic absorption spectrometry.
International Units:
Sample
ALS Chemex Weight Detection Upper
Code Element (grams) Symbol Limit Limit
Au-AA23 Gold 30 Au 5 ppb 10,000 ppb

Au-AA24 Gold 50 Au 5 ppb 10,000 ppb
May 24, 2001

Geochemical Procedure – ME-MS61m
Ultra-Trace Level Methods Using ICP-MS and ICP-AES
Sample Decomposition: HF-HNO3-HClO4 acid digestion, HCl leach

Analytical Methods: Inductively Coupled Plasma - Atomic Emission Spectroscopy (ICP - AES)
Inductively Coupled Plasma - Mass Spectrometry (ICP-MS)
A prepared sample (0.500 gram) is digested with perchloric, nitric and hydrofluoric
acids to dryness. The residue is taken up in nitric and hydrochloric acids and diluted
to a final volume with deionized water. The resulting solution is analyzed by
inductively coupled plasma-atomic emission spectrometry. Following this analysis,
the results are reviewed to ensure that base metal concentrations are less than 1%,
with the exception of Silver, Bismuth, and Tungsten which have upper analytical
limits of 100, 500, and 1000 ppm. Samples that meet this criteria are then diluted and
analysed by ICPMS. Results are corrected for spectral interelement interferences.
Chemex Detection Upper Analytical

Code Element Symbol Limit Limit Technique
9327 Silver Ag 0.02 ppm 100 ppm AES+MS

9301 Aluminum Al 0.01% 25% AES
9340 Arsenic As 0.2 ppm 10,000 ppm AES+MS
9302 Barium Ba 0.5 ppm 10,000 ppm AES
9303 Beryllium Be 0.05 ppm 1000 ppm AES+MS
9304 Bismuth Bi 0.01 ppm 10,000 ppm AES+MS
9306 Calcium Ca 0.01% 25% AES
9305 Cadmium Cd 0.02 ppm 500 ppm AES+MS
9307 Cerium Ce 0.01 ppm 500 ppm MS
9310 Cobalt Co 0.1 ppm 10,000 ppm AES+MS
9309 Chromium Cr 1 ppm 10,000 ppm AES
9308 Cesium Cs 0.05 ppm 500 ppm MS
9311 Copper Cu 0.2 ppm 10,000 ppm AES
9315 Iron Fe 0.01% 25% AES
9312 Gallium Ga 0.05 ppm 500 ppm MS
9313 Germanium Ge 0.05 ppm 500 ppm MS
9243 Hafnium Hf 0.1 ppm 500 ppm MS
9314 Indium In 0.005 ppm 500 ppm MS
9325 Potassium K 0.01% 10% AES
9316 Lanthanum La 0.5 ppm 500 ppm MS
November 9, 2001
Page 1 of
Geochemical Procedure – ME-MS61m (con’t)
Chemex Detection Upper Analytical

Code Element Symbol Limit Limit Technique
9318 Lithium Li 0.2 ppm 500 ppm MS

9319 Magnesium Mg 0.01% 15 % AES
9320 Manganese Mn 5 ppm 10,000 ppm AES
9321 Molybdenum Mo 0.05 ppm 10,000 ppm AES
9328 Sodium Na 0.01% 10 % AES
9323 Niobium Nb 0.1 ppm 500 ppm MS
9322 Nickel Ni 0.2 ppm 10,000 ppm AES+MS
9324 Phosphorus P 10 ppm 10,000 ppm AES
9317 Lead Pb 0.5 ppm 10,000 ppm AES+MS
9326 Rubidium Rb 0.1 ppm 500 ppm MS
9349 Rhenium Re 0.002 ppm 50 ppm MS
9351 Sulfur S 0.01% 10 % AES
9341 Antimony Sb 0.05 ppm 1,000 ppm MS
9350 Selenium Se 1 ppm 1,000 ppm MS
9352 Tin Sn 0.2 ppm 500 ppm MS
9329 Strontium Sr 0.2 ppm 10,000 ppm AES+MS
9330 Tantalum Ta 0.05 ppm 100 ppm MS
9331 Tellurium Te 0.05 ppm 500 ppm MS
9333 Thorium Th 0.2 ppm 500 ppm MS
9334 Titanium Ti 0.01% 10 % AES+MS
9332 Thallium Tl 0.02 ppm 500 ppm MS
9336 Uranium U 0.1 ppm 500 ppm MS
9337 Vanadium V 1 ppm 10,000 ppm AES
9335 Tungsten W 0.1 ppm 10,000 ppm AES+MS
9338 Yttrium Y 0.1 ppm 500 ppm MS
9339 Zinc Zn 2 ppm 1% AES
9353 Zirconium Zr 0.5 ppm 500 ppm MS
MS - Results are from the ICP-MS scan

AES - Results are from the ICP-AES scan
AES+MS - Results are a combination of ICP-AES and ICP-MS scans
Samples which fail to meet the Upper Concentration limits as outlined above, will be treated
as regular T24 digestions and all detection limits will apply as per that method.
November 9, 2001
Page 2 of
Geochemical Procedure – ME-MS61m (con’t)
Sample Decomposition: Nitric Aqua Regia Digestion

Analytical Method: Atomic Absorption Spectroscopy (AAS)
A prepared sample (0.50 grams) is digested with aqua regia for at least one hour in a
hot water bath. After cooling, the resulting solution is diluted to 12.5 ml with
demineralized water and mixed. , A portion of the sample is treated with stannous
chloride to reduce the mercury. The resulting mercury is volatilized by argon-
purging and measured by atomic absorption spectrometry.
Chemex Detection Upper

Code Element Symbol Limit Limit
20 Mercury Hg 10 ppb 100 ppm
November 9, 2001
Page 3 of
TECHNICAL REPORT
ANALITICAL PROCEDURE
Sequential Copper
Scope For samples that are under #80. If the samples do not fit in this screen it is
prepared
General Hydrometallurgical procedure
Safety Safety glasses, rubber gloves, rubber vest, mask and safety shoes (avoid
any contact with the H2SO4 and NaCN solutions)
Solutions H2SO4 5% v/v (take 5 ml of H2SO4© and dilute it with 100 ml of deionized
H2O
NaCN at 10% p/v (10 gr of NaCN in 100 of deionized H2O
HC1©
HNO3©
NClO4©
Reagents Deionized H2O

NaSO4
NaCN
Equipment Atomic Absorption Equipment

Heating plate
Procedure
Cu sulfuric acid 5% v/v soluble
1. Weigh 0.500 g of the sample

2. Put it into a 100 ml bottle
3. Take 20 ml of H2SO4 5% v/v, adding it with a calibrated dispenser
4. Lixiviate it for 60 minutes and manually agitate it intermittently
5. Dilute it (dispenser previously calibrated) to 100 ml with deionized H2O
6. Homogenize and centrifuge
7. Measure by atomic absorption
8. Wash the remain material 3 times with abundant deionized H2O
9. Centrifuge and eliminate the solution
Cu sodium cyanide 10% p/v soluble
1. Add 20 ml of NaCN 10% p/v to the remaining material

2. Lixiviate it for 30 minutes and manually agitate it intermittently
3. Dilute it (dispenser previously calibrated) to 100 ml with deionized H2O
4. Homogenize and centrifuge
6. Wash the remain material 3 times with abundant deionized H2O
7. Centrifuge and eliminate the solution
Technical Report
May 2003
TECHNICAL REPORT
Residual Cu
1. After the remain material is washed, add 5 ml of HCl© + 5 ml of HNO3© + 1 ml of HClO4©

2. Put it on a hot plate until it reaches a syrupy state
3. Add 10 ml of HCl©
4. Put it again on the plate for 5 minutes (to dissolve the salts)
5. Dilute it to 100 ml with deionized H2O, homogenize
Instruments Conditions
The conditions of the equipment varies:

Longitude of the wave : 327.4 nm
Slit : 0.5 nm
Ener. Lamp : 4 ma
Background connector : Off
Standards
1 ppm matrix H2SO4 1% v/v

1 ppm matrix NaCN 2% p/v

1 ppm matrix HCl 10% v/v

Note: the instruments conditions are the same for the three types of standards
Calculations
The samples are read in direct concentration and then multiplied by the volume/weigh factor:
Direct value * Solution volume

= Concentrate in sample (given in the percentage
Sample weight * 10000
Note: the volume of the solution is in ml

the weight of the sample is in gr
Note: Calculations are the same for the three kind of standards
Technical Report
May 2003
TECHNICAL REPORT
Safety quality
Each sheet has 40 samples, 6 of them are repetitions plus an standard (known concentration) or blank.
Personal Safety Notes:
Special care must be taken when preparing the sulfuric acid at 5%, as well as being very careful when
preparing the NaCn at 10% p/v. It is very important to be careful during this preparation as it has a
slightly acid pH and may be harmful. The H2SO4© must be added to the water and not the other way
round. It is preferable that the solution is prepared in plastic bottles and not in glass bottles (as the
preparation of this solution has a strong exergonic reaction that may break glass).
The washing of the remaining materials must be done very thoroughly as the acid residues will produce
+
the HCN when the NaCN + H reacts.
The HCN composite in most of the cases causes death.
If the worker touches (skin, eyes or both) the H2SO4 the area must be washed with abundant water
ointment must not be applied. In the case that the surface of contact is big the worker must be
driven to a HOSPITAL. If the worker drinks or smell NaCN he/she must receive first aid assistance
and then taken to the HOSPITAL.
The H2SO4 is a fast drying substance and for this reason its treatment must be very careful and fast.
Technical Report
May 2003
TECHNICAL REPORT
Table A1-1: Summary of the AMEC Analytical Data

Au-AA26 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61
Au Ag Al As Ba Be Bi Ca Cd Ce Co Cr Cs Cu Fe Ga Ge Hf
ppb ppm % ppm ppm ppm ppm % ppm ppm ppm ppm ppm ppm % ppm ppm ppm
AMEC-GN-01 50 2.45 3.74 13.6 210 0.4 0.4 0.02 0.26 23.2 9.6 92 0.78 7970 2.06 8.57 0.13 0.1
AMEC-GN-02 90 3.05 6.44 392 430 0.63 0.78 0.02 0.61 62.2 12.4 73 2.2 >10000 2.29 15.6 0.19 0.2
AMEC-GN-03 260 1.55 8.27 2.9 620 1.01 0.3 0.59 0.35 33.3 8.5 34 2.85 4050 2.08 18.15 0.16 0.1
AMEC-GN-04 90 1.2 4.56 10.2 680 0.39 2.82 0.62 0.2 18.45 8.6 97 1.74 1050 4.63 13.15 0.15 <0.1
AMEC-GN-05 80 2.02 6.44 186.5 440 0.82 0.28 0.01 0.4 28.2 8.1 96 3.08 >10000 1.32 12.7 0.15 0.1
AMEC-GN-06 70 1.32 6.69 58.7 420 0.73 0.27 0.01 0.29 29.1 8.9 45 2.96 >10000 1.23 12.85 0.16 0.1
AMEC-GN-07 50 2.94 4.35 61.2 250 0.64 0.44 0.02 0.83 43.4 9.8 122 2.33 5860 2.01 11.6 0.16 0.1
AMEC-GN-08 50 4.08 3.72 159 220 0.48 0.72 0.02 0.93 36.4 10 62 1.6 6780 2.04 9.7 0.16 0.1
AMEC-GN-09 170 2.33 8.75 7.6 480 1.36 0.32 0.31 0.75 40.8 8 27 3.26 2090 2.79 18.3 0.18 0.1
AMEC-GN-010 130 2.11 7.95 11 480 1.29 0.33 0.23 1.22 34.3 8.2 36 2.98 2410 2.41 16.2 0.17 0.1
AMEC-GN-011 90 1.92 6.09 26.6 290 0.67 0.13 0.02 0.42 59.1 14.2 95 1.69 5820 2.1 12.2 0.16 0.2
AMEC-GN-012 90 1.34 5.53 22 260 0.61 0.13 0.02 0.93 52.3 11.4 69 1.33 5750 2.02 9 0.13 0.1
AMEC-GN-013 30 1.78 5.78 440 150 0.84 1.01 0.02 0.86 43.6 10.2 87 0.96 2170 1.26 9.98 0.14 0.1
AMEC-GN-014 80 5.63 8.06 323 220 0.94 0.24 0.01 0.7 66.6 21.7 105 1.08 2750 5.32 22.7 0.26 0.4
AMEC-GN-015 270 3.05 7.36 275 760 0.96 0.49 0.02 0.29 28.7 1.4 43 1.38 615 3.79 15.35 0.17 0.2
ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61
In K La Li Mg Mn Mo Na Nb Ni P Pb Rb Re S Sb Se Sn
ppm % ppm ppm % ppm ppm % ppm ppm ppm ppm ppm ppm % ppm ppm ppm
AMEC-GN-01 0.078 2.99 11.7 3 0.14 40 94.2 0.19 2.7 10.7 170 26.2 72.7 0.17 2.36 0.76 6 1.6
AMEC-GN-02 0.162 4.6 30.6 4.6 0.14 42 92.7 0.36 6.1 14.8 260 39.7 102 0.129 2.79 22.7 5 2.2
AMEC-GN-03 0.058 4.38 17 5.4 0.68 164 58.8 1.52 4.3 4.7 530 24.5 111 0.077 0.71 0.39 2 0.8
AMEC-GN-04 0.027 3.92 9.4 5.8 0.53 309 29.4 0.55 3.8 6.6 490 18.8 100.5 0.033 3.44 0.68 2 1.7
AMEC-GN-05 0.099 4.04 13.7 5.6 0.44 67 217 0.25 1.5 9.3 260 52.5 139 0.353 1.48 29.1 5 2.1
AMEC-GN-06 0.099 3.98 13.9 5.2 0.43 71 168 0.23 2 7.8 280 52.6 127 0.264 1.37 30.2 6 2.2
AMEC-GN-07 0.043 3.76 21 5.4 0.79 143 117 0.23 5.7 20.4 200 24 116.5 0.167 1.56 5.71 4 1.6
AMEC-GN-08 0.05 3.71 17.4 5.1 0.64 92 129 0.19 4.7 17.8 190 25.8 110 0.187 1.99 9.86 4 1.9
AMEC-GN-09 0.039 5.21 20.4 6.5 0.76 181 401 2.03 4.1 4.8 610 131 167 0.673 0.63 3.57 3 2.3
AMEC-GN-010 0.037 4.85 16.9 5.6 0.63 158 420 1.56 3.8 4.6 510 138.5 124.5 0.71 0.91 5.38 3 2.3
AMEC-GN-011 0.039 5.55 30.1 3.8 0.37 108 168 0.3 6.4 19.6 270 23.6 135 0.327 2.18 4.43 3 1.9
AMEC-GN-012 0.038 4.91 25.6 3.4 0.33 107 171.5 0.26 4.9 14.2 260 19.7 113.5 0.213 2.13 1.77 2 1.5
AMEC-GN-013 0.042 1.44 21.8 3.7 0.13 39 168.5 0.02 1.7 13.3 220 34.8 48.4 0.317 1.38 21.5 2 1.4
AMEC-GN-014 0.058 4.2 38.3 5.1 0.3 45 282 0.08 5.6 29.1 200 450 130.5 0.357 3.65 58.1 10 4.5
AMEC-GN-015 0.02 4.28 14 3.3 0.18 49 197.5 0.12 2.7 1.8 440 101 147 0.024 0.21 18.05 5 3.9
ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 Hg-CV41 Cu-AA62 CuCN-AN06 CuR-AN06
Sr Ta Te Th Ti Tl U V W Y Zn Zr Hg Cu Cu Cu
ppm ppm ppm ppm % ppm ppm ppm ppm ppm ppm ppm ppm % % %
AMEC-GN-01 39.3 0.15 0.25 4.2 0.08 0.63 0.5 34 2.1 4.3 29 4.1 0.03 0.88 0.678 0.04
AMEC-GN-02 117 0.19 0.46 12.9 0.19 1.97 1.4 76 2.8 13.8 36 7 0.13 1.34 0.909 0.19
AMEC-GN-03 292 0.23 0.07 4.5 0.18 0.74 0.9 62 1.3 10 66 1.4 <0.01 0.44 0.025 0.369
AMEC-GN-04 189 0.23 0.22 2.1 0.13 0.76 0.3 76 2.8 4 37 0.8 <0.01 0.11 0.014 0.073
AMEC-GN-05 96.3 <0.05 0.29 2.7 0.12 1.58 0.7 38 0.5 6.3 37 3.5 0.06 1.39 0.825 0.11
AMEC-GN-06 96.1 0.07 0.24 2.6 0.11 1.27 0.8 40 0.9 6.5 29 1.5 0.02 1.32 1.025 0.121
AMEC-GN-07 59 0.19 0.23 7.4 0.25 1.18 0.9 73 1.7 13.4 29 9.9 0.06 0.66 0.277 0.21
AMEC-GN-08 58.1 0.21 0.44 6 0.2 1.02 0.8 69 3.2 10.7 48 2.1 0.14 0.72 0.423 0.14
AMEC-GN-09 327 0.29 0.08 4.8 0.2 1.15 1.1 65 1.8 6.6 99 4.8 0.01 0.21 0.078 0.049
AMEC-GN-10 302 0.19 0.08 3.8 0.17 1.21 0.9 56 2.3 6 164 3.8 0.01 0.27 0.114 0.047
AMEC-GN-11 111.5 0.33 0.08 10.2 0.18 1.64 1 59 2.1 13.5 21 7.1 0.01 0.61 0.256 0.2
AMEC-GN-12 91.4 0.25 0.07 7.9 0.17 1.26 0.8 57 2.2 10.4 23 5.6 <0.01 0.6 0.25 0.26
AMEC-GN-13 93.5 0.07 0.32 6.2 0.12 1.58 0.6 60 2.7 9.5 85 2.3 0.4 0.21 0.079 0.108
AMEC-GN-14 36 0.15 0.19 18.2 0.28 1.47 1.2 138 5.4 15.6 44 14 0.15 0.28 0.206 0.041
AMEC-GN-15 165.5 0.1 0.2 3.8 0.14 1.1 0.9 52 2.7 3.8 9 4.6 0.1 0.06 0.009 0.042
Technical Report
May 2003
TECHNICAL REPORT
Table A1-2: Summary of the AMEC Analytical Data

Au-AA26 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61
Sample
Au Ag Al As Ba Be Bi Ca Cd Ce Co Cr Cs Cu Fe Ga
ID
ppb ppm % ppm ppm ppm ppm % ppm ppm ppm ppm ppm ppm % ppm
Preparation Duplicate:
AMEC-SN-03B 240 1.54 7.88 2.9 580 0.98 0.24 0.55 0.36 31.3 7.9 43 2.58 3840 1.92 17.7
Primary Sample 260 1.55 8.27 2.9 620 1.01 0.3 0.59 0.35 33.3 8.5 34 2.85 4050 2.08 18.15
Pulp Duplicates:
AMEC-GN-010-DUP 130 2.08 7.68 9.9 450 1.35 0.32 0.22 1.17 33.8 7.7 32 2.87 2230 2.28 15.5
Primary Sample 130 2.11 7.95 11 480 1.29 0.33 0.23 1.22 34.3 8.2 36 2.98 2410 2.41 16.2
AMEC-GN-015-DUP 260
Primary Sample 270
Blank Pulp Standards:

BLANK <10
BLANK <.02 <.01 0.4 <10 <.05 0.01 <.01 <.02 0.02 <.1 <1 <.05 0.2 <.01 <.05
BLANK
BLANK
BLANK
BLAMK
Accepted Range <0.01-0.01 <0.01-0.01 <0.2-0.2 <10-10 <0.05-0.05 <0.01-0.01 <0.01-0.01 <0.02-0.02 <0.01-0.01 <0.1-0.1 <1-1 <0.05-0.05 <0.2-0.2 <0.01-0.01 <0.05-0.05
Mulit-element Standards:
PM81 400
Accepted Range 0.35-0.44
G2000 3.57 5.31 513 2380 1.37 1.1 0.61 8.07 54.1 26.7 66 12.8 301 3.97 12.75
G2000 3.15 4.87 476 2270 1.29 1.12 0.57 7.84 51.4 26.2 77 12.25 333 3.67 12.5
Accepted Range 3.33-3.85 4.66-5.40 448-516 2060-2400 1.29-1.59 0.98-1.16 0.53-0.63 7.04-8.16 47.1-54.3 23.3-27.1 68-80 11.55-13.40 281-325 3.52-4.08 11.45-13.30
JWB-JV-1
Accepted Range
JWB-JV-1
Accepted Range
ANT
Accepted Range
BM5
Accepted Range
Technical Report
May 2003
TECHNICAL REPORT
Hg-CV41 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61
Sample
In K La Li Mg Mn Mo Na Nb Ni P Pb Rb Re S Sb
ID
ppm % ppm ppm % ppm ppm % ppm ppm ppm ppm ppm ppm % ppm
AMEC-SN-03B
Primary Sample 0.051 4.17 16 4.9 0.67 158 68.1 1.48 4.2 4.7 510 23.2 99.8 0.085 0.6 0.4
0.058 4.38 17 5.4 0.68 164 58.8 1.52 4.3 4.7 530 24.5 111 0.077 0.71 0.39
Pulp Duplicates:
AMEC-GN-010-DUP
Primary Sample 0.033 3.96 16.6 5.8 0.62 152 403 1.51 3.7 4.5 490 135.5 106 0.666 0.84 5.56
0.037 4.85 16.9 5.6 0.63 158 420 1.56 3.8 4.6 510 138.5 124.5 0.71 0.91 5.38
AMEC-GN-015-DUP
Primary Sample

BLANK <.005 <.01 <.5 <.2 <.01 <5 <.05 <.01 <.1 <.2 <10 <.5 0.1 <.002 <.01 0.07
BLANK
BLANK
BLANK
BLANK
BLANK
Accepted Range <0.01-0.01 <0.5-0.5 <0.2-0.2 <0.01-0.01 <5-5 <0.05-0.05 <0.01-0.01 <0.1-0.1 <0.2-0.2 <10-10 <0.5-0.5 <0.1-0.1 <0.002-0.002 <0.01-0.01 <0.05-0.05
PM81
Accepted Range
G2000 0.402 1.34 30.3 38.3 0.79 584 6.09 0.16 9.8 291 1000 708 68.4 0.006 0.27 31.2
G2000 0.374 1.26 28.8 35.2 0.74 551 6.42 0.14 9.3 273 960 666 67.3 0.006 0.26 30.1
Accepted Range 1.20-1.40 26.7-31.9 35.2-41.0 0.70-0.82 523-613 5.65-6.61 0.13-0.17 8.4-9.8 266-306 870-1020 622-718 60.4-69.8 <0.002-0.006 0.23-0.29 29.9-34.5
JWB-JV-1
Accepted Range
JWB-JV-1
Accepted Range
ANT
Accepted Range
BM5
Accepted Range
Technical Report
May 2003
TECHNICAL REPORT
ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-MS61 Cu-AA62 CuCN-AN06 CuS-AN06 CuR-AN0
Sample
Se Sn Sr Ta Te Th Ti Tl U V W Y Zn Zr Hg Cu Cu Cu Cu
ID
ppm ppm ppm ppm ppm ppm % ppm ppm ppm ppm ppm ppm ppm ppm % % % %
AMEC-SN-03B
Primary Sample 2 0.8 279 0.2 0.06 4.2 0.18 0.73 0.8 60 1.4 9.4 61 2.9 <0.01 0.43 0.025 0.008 0.3
2 0.8 292 0.23 0.07 4.5 0.18 0.74 0.9 62 1.3 10 66 1.4 <0.01 0.44 0.025 0.007 0.3
Pulp Duplicates:
AMEC-GN-010-DUP
Primary Sample 3 2.1 290 0.25 0.07 3.8 0.16 1.17 0.9 54 2.2 5.7 158 2.6 0.26 0.117 0.082 0.0
3 2.3 302 0.19 0.08 3.8 0.17 1.21 0.9 56 2.3 6 164 3.8 0.01 0.27 0.114 0.077 0.0
AMEC-GN-015-DUP
Primary Sample 0.1
0.1
BLANK
BLANK
BLANK <1 <.2 <.2 <.05 <.05 <.2 <.01 <.02 <.1 <1 <.1 <.1 2 <.5
BLANK <.01
BLANK <.01
BLANK <.01
<.001 <.001 <.001
Accepted Range <1-1 <0.2-0.2 <0.2-0.2 <0.05-0.05 <0.05-0.05 <0.2-0.2 <0.01-0.01 <0.02-0.02 <0.1-0.1 <1-1 <0.1-0.1 <0.1-0.1 <2-2 <0.5-0.5 <0.01-0.01 <0.001-0.001 <0.001-0.001 <0.001-0.00
PM81
Accepted Range
G2000 4 2.3 119 0.42 0.16 7.4 0.36 1.02 3.3 112 16.4 21.1 1345 33.7
G2000 4 2.2 115 0.26 0.14 7.1 0.34 1.02 3.2 105 15.4 20.3 1310 38.9
Accepted Range 4-6 1.7-2.3 107.5-124.5 0.32-0.48 0.14-0.26 7.0-8.6 0.32-0.39 0.89-1.07 3.0-3.6 99-116 14.2-16.6 17.8-20.8 1165-1350 28.3-33.7
JWB-JV-1
Accepted Range 0.98
JWB-JV-1
Accepted Range 1.1
ANT 2.64
Accepted Range 2.59-2.79
BM5 0.032 0.008 0.1

Accepted Range 0.027-0.033 0.008-0.012 0.110-0.1
MOH 0.01 0.29 0.0

Accepted Range 0.008-0.012 0.259-0.301 0.018-0.0
Technical Report
May 2003
TECHNICAL REPORT
APPENDIX B
NORTH DRILLHOLE LOCATION, DIP,
AZIMUTH AND DEPTH DATA
Technical Report
Project No. U954A Appendices
May 2003
TECHNICAL REPORT
Table B-1
Drillhole Location, Dip, Azimuth and Depth Data
Total
Hole_Id Easting Northing Elevation Total_Depth Azimuth Dip Company Meters
DDH-GN-01 796039 9228226 Newmont

DDH-GN-02 795828 9228370
DDH-GN-03 795488 9228579
DDH-GN-04 795638 9228781 774m
RCD-GN-05 795708.28 9228514.86 3932.769 292 0 -90 North

RCD-GN-06 795825.32 9228792.83 3849.589 240 0 -90
RCD-GN-07 795763.85 9228043.33 3878.444 266 0 -90
RCD-GN-08 795867.47 9228266.4 3980.231 285 0 -90
RCD-GN-09 796064.77 9227967.24 3958.568 253 0 -90
RCD-GN-10 796288.82 9227797.15 3975.764 208 0 -90
RCD-GN-11 795825.99 9228371.48 3966.925 240 0 -90
RCD-GN-12 795528.43 9228241.14 3928.712 260 0 -90
RCD-GN-13 795220.19 9228348.59 3943.562 152 0 -90
RCD-GN-14 796285.74 9228126.19 3969.769 244 0 -90
RCD-GN-15 795423.47 9228429.83 3975.653 300 25 -60
RCD-GN-16 795298.63 9228624.52 4045.748 195 0 -90
RCD-GN-17 795386.61 9228711.94 3975.772 259 0 -90
RCD-GN-18 795533.02 9227926.69 3853.376 250 0 -90
RCD-GN-19 795408.14 9227826.66 3839.779 240 0 -90
RCD-GN-20 795463.8 9228063.8 3891.757 224 270 -60
RCD-GN-21 795204.06 9227814.04 3903.044 187 0 -90
RCD-GN-22 795694.58 9227643.84 3835.801 248.5 0 -90
RCD-GN-23 795385.97 9227636.7 3808.693 136 0 -90
RCD-GN-24 795702.16 9227789.39 3850.511 262 0 -90
RCD-GN-25 795944.57 9227818.95 3910.334 187 0 -90
RCD-GN-26 795881.1 9227733.38 3896.917 205 0 -90
RCD-GN-27 796349.82 9228415.74 3809.94 126 0 -90
RCD-GN-28 796136.3 9228668.73 3805.817 188 0 -90
RCD-GN-29 796789.74 9228900.5 3802.598 79 0 -90
RCD-GN-30 795693.28 9228404.41 3998.815 271 0 -90
RCD-GN-31 795977.3 9228665.84 3834.261 211 0 -90
RCD-GN-32 796071.73 9228469.57 3848.085 174 0 -90
RCD-GN-33 796229.7 9228927.87 3799.647 190 0 -90
RCD-GN-34 796454.83 9228580.24 3789.532 142 0 -90 6,514.5m
DDH-GN-35 795422.39 9229106.07 3870.839 213 0 -90 North

DDH-GN-36 795298.34 9228899.66 3936.927 419.3 0 -90
DDH-GN-37 795597.73 9229000.24 3862.649 391 0 -90
Technical Report
May 2003
TECHNICAL REPORT
Total
Hole_Id Easting Northing Elevation Total_Depth Azimuth Dip Company Meters
DDH-GN-38 795702.8 9228301.35 3962.579 315.3 0 -90
DDH-GN-39 796044.21 9228700.04 3814.727 474.7 270 -45
DDH-GN-40 795206.48 9228498.66 3978.543 413.2 0 -90
DDH-GN-41 795899.53 9228597.32 3845.072 320 270 -45
DDH-GN-42 795796.27 9228695.16 3858.27 499.4 270 -45
DDH-GN-43 795950.04 9228399.93 3912.559 595.2 270 -45
DDH-GN-44 795909.49 9228495.55 3883.723 353 270 -45
DDH-GN-45 796139.96 9228670.39 3805.817 191.5 0 -90
DDH-GN-46 795871.01 9228264.44 3979.6 250 0 -90
DDH-GN-47 797430.48 9228738.77 3847.237 312.1 60 -45
DDH-GN-48 796484.57 9228862.13 3793.218 327.05 225 -45
DDH-GN-49 796217.9 9229133.87 3803.024 300 180 -60
DDH-GN-50 795652.28 9229306.43 3862.979 232 180 -45
DDH-GN-51 796709.66 9229030.05 3811.607 250.6 225 -45 5,857.35m
Technical Report
May 2003
TECHNICAL REPORT
APPENDIX C
GEOPHYSICS – CHARGEBILITY
AND RESISTING PROFILES
Technical Report
May 2003
TECHNICAL REPORT
APPENDIX D
PHOTOGRAPHS
Technical Report
May 2003
TECHNICAL REPORT
Plate 4-1: Secondary Fe mineral precipitation around the shores of Laguna Milpo
Technical Report
May 2003
TECHNICAL REPORT
Plate 5-1: Looking southward from the southern limit of the El Galeno Property
Technical Report
May 2003
TECHNICAL REPORT
Plate 5-2: Looking eastward over the core shack in the El Galeno camp towards local agricultural
development that extends almost up to the camp
Plate 5-3: Office and sleeping quarters at the El Galeno camp
Technical Report
May 2003
TECHNICAL REPORT
Plate 5-4: The storage facility at the El Galeno camp
Technical Report
May 2003
TECHNICAL REPORT
Plate 5-5: Looking north to northwest across the Rinconada Valley from GN-DDH-02
Technical Report
May 2003
TECHNICAL REPORT
Plate 6-1: Platform GN-DDH-02
Technical Report
May 2003
TECHNICAL REPORT
Plate 7-1: Siltstones of the Santa Formation exhibiting weathering and

weak clay ± sericite alteration, with moderate Fe-staining
and weak disseminated goethite
Technical Report
May 2003
TECHNICAL REPORT
Plate 7-2: Stockworked dacitic porphyry with strong phyllic alteration
Plate 9-1: Progressive overprinting of potassic alteration by phyllic alteration in sediments
Technical Report
May 2003
TECHNICAL REPORT
Plate 9-2: Intense stockworking in an outcrop of weathered intrusive showing strong sericite and
clay alteration. The stockwork is formed of quartz veins with pyrite, chalcocite and covellite
Plate 9-3: Covellite +/- chalcocite on fractures in a porphyritic intrusive that has been subject to
potassic and strong overprinting phyllic alteration.
Technical Report
May 2003
TECHNICAL REPORT
Plate 9-4: Semi-pervasive to pervasive potassic (K-feldspar) alteration of the sediments
Technical Report
May 2003
TECHNICAL REPORT
Plate 10-1: The core storage facility in Cajamarca
Plate 12-1: View of core boxes showing the representative nature of the drill core
sampling carried out by North.
Technical Report
May 2003

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Lumina Copper Corporation

This report was prepared exclusively for Lumina Copper Corporation

1.0 SUMMARY ................................................................................................................................... 1-1

El Galeno Technical Report

12.0 SAMPLING METHODS .............................................................................................................. 12-1

El Galeno Technical Report

Figure 4-1: El Galeno Location Map ....................................................................................................... 4-2

A – AMEC Independent Samples

El Galeno Technical Report

Copper mineralization was first recognized on the El Galeno Property in 1993.

El Galeno Technical Report

North completed two mineral resource estimates on the porphyry mineralization at El

AMEC concludes the following:

• The level of understanding of both the geology and alteration at El Galeno is

El Galeno Technical Report

• The Central Zone mineralization could be up-graded to an Inferred Mineral Resource

• Twinning of three of the reverse circulation drillholes in the Central Zone

• Additional metallurgical testing

• Re-logging all existing drill core

• Detail structural mapping over the main area

• Sampling, sample transportation, sample preparation and analyses should include a

• Obtain remaining documentation on previous programs from laboratories used

• Analyses include sequential copper and residual copper analyses

• Complete a mineral resource estimate.

El Galeno Technical Report

El Galeno Technical Report

2.0 INTRODUCTION AND TERMS OF REFERENCE

Lumina commissioned AMEC to provide an independent Qualified Person’s Review and

El Galeno Technical Report

2.1 Terms of Reference

AMEC is not an associate or affiliate of Lumina, or of any associated company. AMEC’s

This report is based on information known to AMEC as of 30th May 2003.

El Galeno Technical Report

El Galeno Technical Report

4.0 PROPERTY DESCRIPTION AND LOCATION

4.2 Land Tenure

Table 4-1: Mineral Concessions Forming the El Galeno Property

El Galeno Technical Report

4.3 Terms of the Agreement

Table 4-2: Schedule of Payments

El Galeno Technical Report

Payments starting in month 12 are to be subjected to reductions, if the average copper

Table 4-3: Copper Price Ranges and Related Payment Discounts

4.4 Environmental and Socio-Economic Issues

El Galeno Technical Report

4.5 Property and Title in Peru

El Galeno Technical Report

To be enforceable, any and all transactions and contracts pertaining to a mining

4.6 Environmental Regulations

According to Peruvian regulations (S.D. 038-98-EM) the environmental requirements for

Classification C pertains to mining exploration programs with more than 20 boreholes,

El Galeno Technical Report

Table 4-4: Summary of Environmental Requirements for Mining Exploration Programs

El Galeno Technical Report

El Galeno Technical Report

5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES,

Table 5-1: Access to the El Galeno Property

El Galeno Technical Report

5.3 Local Resources and Infrastructure

El Galeno Technical Report

The topography of the Property is dominated by a glacial morphology. Elevation varies

5.5 An Overview of Peru

El Galeno Technical Report