Viscachita Project (Cu-Mo)

LOS ANDES COPPER LTD.
Preliminary Economic Assessment for

the Vizcachitas Copper/Molybdenum
Project
V Region, Chile

Effective Date: January 23, 2014
Report Date: February 18, 2014
Prepared by:
Coffey Consultora y Servicios SpA
Alquimia Conceptos S.A
John Wells BSc, MBA, FSAIMM.
Manuel Hernndez, BSc, FAusIMM.
Porfrio Rodriguez, BSc, MAIG.
Romn Flores, BSc, Member of Chilean Mining Commission.
Prepared for:
Los Andes Copper Ltd.

i

Table of Contents
1 SUMMARY 1
1.1 Introduction 1
1.2 Project Location 1
1.3 Property Ownership 2
1.4 Property Description 3
1.5 Geology and Mineralization 3
1.6 Drilling 4
1.7 Mineral Processing and Metallurgical Testing 4
1.8 Mineral Resource Estimate 5
1.9 Mineral Reserves Estimate 6
1.10 Mining Methods 7
1.11 Process Design and Recovery 8
1.12 Project Infrastructure 9
1.13 Marketing Studies 10
1.14 Capital Cost Estimate 12
1.15 Operating Costs Estimate 13
1.16 Economic Analysis 14
1.17 Conclusions and Recommendations 16
2 INTRODUCTION AND TERMS OF REFERENCE 18
2.1 Purpose of the Technical Report 18
2.2 Frequently Used Acronyms, Abbreviations, Definitions, and Units of Measurement 18
2.3 Effective Dates 20
3 RELIANCE ON OTHER EXPERTS 22
3.1 Other Independent Expert Persons 22
4 PROPERTY DESCRIPTION AND LOCATION 23
4.1 Land Tenure 24
4.2 Title, Surface Rights and Legal Access 29
4.3 Net Smelter Return 30
4.4 Environmental Liabilities 30
4.5 Operational Permits 30
5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY 31
5.1 Country Setting 31
5.2 Access 32
5.3 Climate 32
5.4 Physiography and Vegetation 32
5.5 Local Resources 33
5.6 Infrastructure 33
6 HISTORY 35
6.1 Description 35

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6.2 Historic Resource Estimates 36
6.2.1 Placer Dome 37
6.2.2 General Minerals 37
6.2.3 GHG Resources Ltd. 38
6.2.4 Los Andes Copper Ltd. 38
6.3 Historic Preliminary Economic Assessment 40
7 GEOLOGY 41
7.1 Regional Geology 41
7.2 Local and Property Geology 42
7.3 Mineralization 44
8 DEPOSIT TYPES 45
9 EXPLORATION 46
9.1 Placer Dome Sudamerica S.A. 46
9.2 General Minerals Corporation 46
9.3 Global Copper Corporation 48
9.4 Los Andes Copper Ltd. 48
10 DRILLING 49
10.1 Placer Dome Sudamerica Limited 50
10.2 General Minerals Corporation 51
10.3 Los Andes Copper Ltd. 51
10.3.1 Drilling 51
10.3.2 Procedures 52
10.3.3 Surveying 52
10.3.4 Geological and Geotechnical Logging 54
10.3.5 Results 54
11 SAMPLE PREPARATION, ANALYSES AND SECURITY 57
11.1 Quality Assurance/Quality Control Definitions and Protocols 57
11.2 Historic Data 58
11.3 Los Andes Copper QA/QC Results 63
11.3.1 Duplicates 65
11.3.2 Certified Reference Materials (CRM) 68
11.3.3 Blank Samples 72
11.3.4 Samples to Check Laboratory 73
11.4 Opinion on the Adequacy of Sample Preparation and Assay Quality 74
11.5 Los Andes Copper Core Sampling 74
11.6 Specific Gravity Sampling and Determination 75
11.7 Los Andes Copper Assay Procedures 75
11.8 Opinion on the Adequacy of Sample Preparation and Assay Quality 76
12 DATA VERIFICATION 77
12.1 Summary 77
12.2 Site Visit 78

iii

12.3 Data Validation 78
12.3.1 Log Files 78
12.3.2 Drill Hole Collars 78
12.3.3 Down-Hole Survey 79
12.3.4 Database Review 79
12.4 Interpretation of Geology, Alteration and Mineralization 79
12.5 Specific Gravity 80
12.6 Opinion of Adequacy of the Database 80
13 MINERAL PROCESSING AND METALLURGICAL TESTING 81
13.1 Comminution Test Work 81
13.1.1 1998: Ball Bond Work Index 81
13.1.2 2008: SMC Test and Bond Abrasion Test 81
13.2 Flotation Test Work 82
13.2.1 1996 Test Work 83
13.2.2 1998 Test Work 87
13.2.3 2008 Test Work 92
13.3 Leach Test Work 99
13.3.1 1999 Test Work 99
13.3.2 1999-2000 Test Work 106
13.4 2001 Test Work 108
13.5 Conclusions 109
14 MINERAL RESOURCE ESTIMATE 112
14.1 Geological 3-D Model, and Domains 112
14.1.1 Available Data 117
14.1.2 Geological 3-D Model Verification 117
14.2 Mineral Resource Estimate 117
14.2.1 Method for Estimate and Tools 117
14.2.2 Specific Gravity 117
14.2.3 Assay Statistics 118
14.2.4 Composites Study 121
14.2.5 Exploratory Data Analysis 122
14.2.6 High Grade Capping 138
14.2.7 Spatial Analysis - Variography 138
14.2.8 Resource Block Model 141
14.2.9 Interpolation Plan 141
14.2.10 Block Model Validation 142
14.2.11 Global Bias Comparison 143
14.2.12 Visual Comparison 144
14.2.13 Mineral Resource Categorization 149
14.2.14 Mineral Resource 155
14.2.15 Comparison with Previous Resource Estimate 160
14.3 Conclusions 164
15 MINERAL RESERVES ESTIMATE 165
16 MINING METHODS 166
16.1 Bench Height 169

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16.2 Waste Dump Design Parameters 170
16.3 Hydrology and Hydrogeology 172
16.4 Treatment Capacity 173
16.5 Optimum Pit Shells 173
16.6 Mine Operations 174
16.6.1 Drill and Blast 174
16.6.2 Load and Haul 176
16.6.3 Auxiliary Equipment 176
16.7 Manpower 177
16.8 Mining Plan Options 179
16.8.1 Case 1.2: 88 ktpd 179
16.8.2 Case 1.3: 176ktpd 188
16.8.3 Case 1.5: 88 - 176 ktpd 195
16.8.4 Case 2.2: 44 ktpd 202
16.9 Summary 209
17 RECOVERY METHODS 211
17.1 Introduction 211
17.2 Process Design Basis and Design Criteria Summary 213
17.3 Crushing 214
17.4 Grinding 214
17.5 Copper-Molybdenum Flotation Circuit Design 217
17.6 Copper-Molybdenum Separation and Molybdenum Cleaner 219
17.7 PEA Options and Cases 222
18 PROJECT INFRASTRUCTURE 231
18.1 Vizcachitas Site 231
18.2 Process Water Supply 234
18.3 Rocin River Diversion Tunnel 236
18.4 Power Supply 238
18.4.1 Site Electrical Power Distribution 240
18.4.2 Rocin River Hydro Electric Generation 240
18.5 Process Plant Earthworks 241
18.6 Tailings Storage Facility 242
18.6.1 Tailings Storage Facility Design 243
18.6.2 Underdrain System 245
18.6.3 TSF Diversion Channel 246
18.6.4 Tailings Transport System 246
18.6.5 TSF Reclaim Water System 246
18.7 Roads 247
18.7.1 Access Road 247
18.7.2 Site Roads 248
18.8 Concentrate Storage, Loading and Transport 248
18.9 Ventanas Port Facilities 249
18.10 Site Accommodation 249
18.11 Fuel Storage 249
18.12 Potable Water Supply 249
18.13 Ancillary Site Buildings and Facilities 249
19 MARKETING STUDIES AND CONTRACTS 252

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19.1 Introduction & Scope 252
19.2 Refined Copper Market 252
19.3 Copper Concentrate Market Outlook 253
19.4 Treatment and Refining Charges 255
20 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT 256
20.1 Introduction 256
20.2 Historical Environmental Information 256
20.3 Legal Framework for Environmental Studies 257
20.4 Future Environmental Studies 258
20.4.1 Studies Required to Complete the Pre-feasibility and Feasibility Studies. 258
20.4.2 Studies Required to Construct and Operate the Mine. 258
21 CAPITAL AND OPERATING COSTS 261
21.1 Capital Cost Estimate 261
21.1.1 Indirect Costs 264
21.1.2 Contingency 264
21.1.3 Accuracy 265
21.1.4 Estimate Exclusions 265
21.2 Operating Cost Estimates 265
21.2.1 Mining Operating Cost 266
21.2.2 Process Plant Operating Cost 268
21.2.3 Infrastructure and Administration 269
21.2.4 C-1 Cash Costs (Net of credits) 270
22 ECONOMIC ANALYSIS 272
22.1 Methodology Used 272
22.2 Financial Model Parameters 273
22.3 Taxes and Royalties 274
22.3.1 Income Tax 274
22.3.2 Mining Royalty Tax 276
22.4 Production Summary 278
22.5 Residual Value In Situ 281
22.6 Economic Evaluation Results 282
22.7 Sensitivity Analysis 282
22.7.1 Copper Price Variation 283
22.7.2 Molybdenum Price Variation 286
22.7.3 CAPEX and OPEX Variation 288
22.7.4 Discount Rate Variation 292
22.8 After Income Tax Analysis 292
23 ADJACENT PROPERTIES 295
24 OTHER RELEVANT DATA 296
25 INTERPRETATION AND CONCLUSIONS 297
25.1 Interpretations and Conclusions 297
25.2 Risks and Opportunities 298

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25.2.1 Risks 298
25.2.2 Opportunities 299
26 RECOMMENDATIONS 300
27 REFERENCES 301
28 CERTIFICATES AND SIGNATURES 305

List of Appendices
APPENDICES 314
APPENDIX A: LEGAL OPINION 315
APPENDIX B: LOCATION, AZIMUTH AND DIP OF ALL DRILL HOLE 320

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List of Figures
Figure 4-1: Vizcachitas Project Location (source: Los Andes Copper, June, 2013) 24
Figure 4-2: Mining Claims as of January 10, 2014 28
Figure 4-3: Exploration Claims as of January 10, 2014 29
Figure 5-1: View over the Project Area. General Site View looking East (source: Los Andes Copper, June, 2013) 33
Figure 7-1: Regional Geology 42
Figure 7-2: Local Geology (source: Los Andes Copper, June, 2013) 43
Figure 10-1: Drill Hole Location (source: Los Andes Copper, June, 2013) 50
Figure 10-2: Core Storage at the Project 52
Figure 11-1: GMC Secondary Laboratory Duplicates ACME vs. CIMM 60
Figure 11-2: GMC Secondary Laboratory Duplicates ACME vs. Lakefield 61
Figure 11-3: GMC Secondary Laboratory Duplicates ACME vs. ALS 62
Figure 11-4: ACME Reference Material STD_5 63
Figure 11-5: Los Andes Copper Coarse Duplicates Analysis 66
Figure 11-6: Statistical Diagrams for Duplicate Samples 68
Figure 11-7: Oreas 92 Assay Results 69
Figure 11-10: Oreas 43P Assay Results 71
Figure 11-11: Oreas 43P Mo Standard for Cu 71
Figure 11-12: Blank Assay Values in the Vizcachitas Project 72
Figure 11-13: Actlabs Check Samples 74
Figure 12-1: Pulp Sample storage on the Property (source: Los Andes Copper, June 2013) 77
Figure 14-1: Local geology 3-D view in Minesight Software-Plan 1930. (Lithological codes according to Table 14-1,
Coffey, June, 2013) 114
Figure 14-2: Mineral Zone view in Minesight Software-Plan 1930. (Codes according to Table 14-2, Coffey, June, 2013)
116
Figure 14-3: Boxplot of Raw Copper Assay Values by Lithology 119
Figure 14-4: Boxplot of Raw Copper Assay Values by Mineral Zone 120
Figure 14-5: Histogram and Cumulative Plot of Length of Raw Data 122
Figure 14-6: Uncapped 2 m Composited Copper (ppm) All Data Statistics 124
Figure 14-7: Uncapped 2 m Composited Molybdenum (ppm) All Data Statistics 125
Figure 14-8: Boxplot of Composited Copper Data by Lithology 128
Figure 14-9: Boxplot of Composited Molybdenum Data by Lithology 129
Figure 14-10: Boxplot of Composited Copper Data by Mineral Zone 130
Figure 14-11: Boxplot of Composited Molybdenum Data by Mineral Zone 131
Figure 14-12: Boxplot of Composited Copper Data by Domain 132

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Figure 14-13: Boxplot of Composited Molybdenum Data by Domain 132
Figure 14-14: Contact Plot of Copper in Mixed and Supergene Domains 135
Figure 14-15: Contact Plot of Copper in Andesite and Diorite Domains 136
Figure 14-16: Contact Plot of Copper in Andesite and Diorite Dyke Domains 137
Figure 14-17: Contact Plot of Molybdenum in Mixed and Supergene Domains 138
Figure 14-18: Copper Variogram/Correlogram in And_dio Estimation Domain (X, Y, Z axis) 140
Figure 14-19: Mid Bench 1930 Screen-Capture Plot of Copper % (source: Coffey, June, 2013) 145
Figure 14-20: E-W Screen-Capture Plot (N-6413120) of Copper % (source: Coffey, June, 2013) 146
Figure 14-21: N-S Screen-Capture Plot (E-365960) of Copper % (source: Coffey, June, 2013) 147
Figure 14-22: Mid Bench 1930 Screen-Capture Plot of Molybdenum % (source: Coffey, June, 2013) 149
Figure 14-23: Plan View at 1930 Elevation Showing the Distribution of Indicated (green) and Inferred (yellow) Mineral
Resource Blocks (source, Coffey, June, 2013) 152
Figure 14-24: E-W Section View (N-6413120) Showing the Distribution of Indicated (green) and Inferred (yellow) Mineral
Resource Blocks (source: Coffey, June, 2013) 153
Figure 14-25: N-S Section View (E-365960) Showing the Distribution of Indicated (green)and Inferred (yellow) Mineral
Resource Blocks (source: Coffey, June, 2013) 154
Figure 14-26: Pit shell with Copper Grades for throughput 176 ktpd (Plan View Z=1950) source: Coffey, June, 2013 156
Figure 14-27: Pit shell with Copper Grades for throughput 176 ktpd (Cross Cut N=6.413.700) (source: Coffey, June,
2013) 157
Figure 14-28: Tonnage-Cu Eq Grade Curves 159
Figure 14-29: Additional Drilling to the South of the Vizcachitas Deposit 161
Figure 16-1: Pit Outlines for each Option 16 ktpd (source: Coffey, June, 2013) 167
Figure 16-2: Pit Outline Option 176 ktpd (source: Coffey, June, 2013) 168
Figure 16-3: Mine Sectors considered by Geotechnical Behaviour 170
Figure 16-4: Location of Waste Dumps (source: Coffey June, 2013) 171
Figure 16-5: Ultimate Pit: 88 ktpd (Coffey, June, 2013) 180
Figure 16-6: Schedule Production to 88 ktpd 182
Figure 16-7: Indicated and Inferred Resources in Mine Schedule: 88 ktpd 183
Figure 16-9: Schedule Production to 176 ktpd 190
Figure 16-11: Ultimate Pit: 88-176 ktpd (Coffey, June, 2013) 195
Figure 16-12: Schedule Production: 88-176 ktpd 197
Figure 16-13: Indicated and Inferred Resources in Mine Schedule: 88-176 ktpd 198
Figure 16-15: Schedule Production: 44 ktpd 204
Figure 17-1: Simplified sketch of the Plant flow sheet. 212
Figure 17-2: SAC Circuit 215

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Figure 17-3: SABC-B Circuit 216
Figure 17-4: Cu - Mo Flotation Circuit 218
Figure 17-5: Molybdenum Flotation Circuit 220
Figure 17-6: General Arrangement Process Plant Cases 1.2, 1.3 and 1.5 224
Figure 17-7: General Arrangement Process Plant Case 2.2 226
Figure 18-1: Vizcachitas Property Location 232
Figure 18-2: Plot Plan Project Facilities 233
Figure 18-3: Water Supply Route 235
Figure 18-4: Tunnel Layout 237
Figure 18-5: 110 kV Overhead Powerline Route (source: Google Earth, June, 2013) 239
Figure 18-6: 220 kV Overhead Powerline Route (source: Google Earth, June, 2013) 240
Figure 18-7: Tailing Storage Facility Location (source: Google Earth, June, 2013) 243
Figure 18-8: Raised Embankment Location (source: Google Earth, June, 2013) 244
Figure 18-9: Water Reclaim System (source: Google Earth, June, 2013) 246
Figure 18-10: Slurry Pipeline Route (source: Google Earth, June, 2013) 246
Figure 18-11: Access Road Network (source: Google Earth, June, 2013) 248
Figure 19-1: Market Balance 2013 2017 (source: Codelco April 2013 update) 254
Figure 22-1: Long term Cu Price Variation Case 1.2 284
Figure 22-5: Mo Price Variation Case 1.2 287
Figure 22-9: Capex and Opex Variation Case 1.2 290

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List of Tables
Table 1-1: Drilling Summary at Vizcachitas 4
Table 1-2: Estimated Resource at Selected Cut-off Grades 6
Table 1-3: Summary of Final Pit Mine Production 8
Table 1-4: Summary of Concentrates and Fine Metal produced 9
Table 1-5: Copper Price Forecast 11
Table 1-6: Molybdenum Price Forecast (Source: Bloomberg 2013) 11
Table 1-7: Capital Cost Summary (Nominal values) 13
Table 1-8: Estimation Period by Case 14
Table 1-9: Unit Operating Costs and Average Cash Cost (Nominal values) 14
Table 1-10: Main Economic Parameters 14
Table 1-11: Economic Evaluation Summary before Income Tax 16
Table 1-12: Economic Evaluation Summary after Income Tax 16
Table 2-1: Units of Measurement 19
Table 2-2: Units of Measurement (continuation) 20
Table 4-1: Exploitation Claims as of January 10, 2014 25
Table 4-2: Exploration Claims as of January 10, 2014 26
Table 6-1: AMEC 2008 Sulphide Mineral Resource Estimate 39
Table 6-2: AMEC 2008 Oxide Mineral Resource Estimate 39
Table 10-1: Drilling Summary at Vizcachitas 49
Table 10-2: Placer Dome and General Minerals drilling highlights 55
Table 10-3: Los Andes Copper drilling highlights 56
Table 11-1: GMC Secondary Laboratory Duplicates 59
Table 11-2: ACME Reference Material Results 63
Table 11-3: Number of Samples used in the Vizcachitas QA/QC program 65
Table 11-4: Statistical results of Duplicate Samples from the Vizcachitas Project. (Los Andes Copper, June, 2013) 67
Table 11-5: CRM Sample Summary 69
Table 11-6: SGS Analytical Methods 76
Table 13-1: Summary of Ball Bond Work Index (source: Lakefield Research Chile S.A., 1999a) 81
Table 13-2: Summary of SMC Test (source: SGS Minerals Services, 2009) 82
Table 13-3: Summary Abrasion Index Test (source: SGS Minerals Services, 2009) 82
Table 13-4: Chemical Analysis (source: Lakefield Research Chile S.A., 1996) 84
Table 13-5: Mineralogy (source: Lakefield Research Chile S.A., 1996) 84
Table 13-6: Summary of Rougher Flotation; time 12 min (source: Lakefield Research Chile S.A., 1996) 85
Table 13-7: Cleaner Flotation Summary (source: Lakefield Research Chile S.A., 1996) 86
Table 13-8: Sample Description and Chemical Analysis (source: Lakefield Research Chile S.A., 1999a) 87

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Table 13-9: Summary of Cu grade (wt. %) and Percent Distribution of different Cu-bearing minerals (source: Lakefield
Research Chile S.A., 1999a) 88
Table 13-10: Summary of Rougher Flotation Test Composite A (source: Lakefield Research Chile S.A., 1999a) 89
Table 13-11: Summary of Cleaner Flotation Result Samples J and K (source: Lakefield Research Chile S.A., 1999a) 90
Table 13-12: Composites used in Locked Cycle Test 91
Table 13-13: Summary of Locked Cycle Tests (source: Lakefield Research Chile S.A., 1999a) 91
Table 13-14: Chemical Analysis (source: SGS Minerals Services, 2009) 92
Table 13-15: Cumulative Cu Recoveries and Grades at different P80 12 minutes flotation residence time (source: SGS
Minerals Services, 2009) 93
Table 13-16: Cumulative Mo Recoveries and Grades at different P80 12 minutes flotation residence time (source: SGS
Minerals Services, 2009) 94
Table 13-17: Copper and Molybdenum Recovery, regrind at 35 microns two cleaner stages (source: SGS Minerals
Services, 2009) 95
Table 13-18: Copper and Molybdenum Recovery, regrind at 50 microns two cleaner stages (source: SGS Minerals
Services, 2009) 96
Table 13-19: Copper and Molybdenum Recovery, regrind at 25 microns three cleaner stages (source: SGS Minerals
Services, 2009) 97
Table 13-20: Copper and Molybdenum Recovery, regrind at 35 microns three cleaner stages (source: SGS Minerals
Services, 2009) 98
Table 13-21: Chemical Analysis Results (source: Lakefield Research Chile S.A., 1999b) 101
Table 13-22: Mineralogical Results (source: Lakefield Research Chile S.A., 1999b) 103
Table 13-23: Agitation Leach Test Results on 29 Composites Samples (source: Lakefield Research Chile S.A., 1999b)105
Table 13-24: Leach Test Summary (source: Lakefield Research, 2000) 107
Table 13-25: Bacterial Leach Test Results (source: Little Bear Laboratories, Inc., 2001) 109
Table 14-1: Vizcachitas Lithology Model Codes 113
Table 14-2: Vizcachitas Mineral Zone Codes 115
Table 14-3: Vizcachitas 3-D Model limits. 117
Table 14-4: Bulk Density by Domain (AMEC, 2008) 118
Table 14-5: Domains used in Resource Estimate 122
Table 14-6: Type of Contacts between Domains 133
Table 14-7: Capped Value for Copper by Domain. 138
Table 14-8: Capped Value for Molybdenum by Domain. 138
Table 14-9: Variography Parameters for Copper by Domain. 140
Table 14-10: Variography Parameters for Molybdenum by Domain. 141
Table 14-11: Block Model Limits and Size 141
Table 14-12: Search Parameters for Copper by Domain 142
Table 14-13: Search Parameters for Molybdenum by Domain 142
Table 14-14: Comparison between Kriged and Nearest Neighbour Copper Model Statistics 143
Table 14-15: Comparison between Kriged and Nearest Neighbour Molybdenum Model Statistics 143

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Table 14-16: Comparison between different drill hole spacing, monthly Kriging variances and confidence limits for
Mixed Domain 150
Supergene Domain 150
And_Dio Domain 150
Table 14-19: Mineral Resource for Cu Eq%
(1)
158
Table 14-20: Comparison between AMEC 2008 and Coffey 2013 Resource 160
Table 14-21: AMEC 2008 Oxide Resources 164
Table 16-1: Geometrical Parameters by Sector 170
Table 16-2: Geometrical Parameters for Waste Dumps 170
Table 16-3: Dump Plan (Schedule 176 ktpd) 172
Table 16-4: Plant capacity options 173
Table 16-5: Input Data for Pit Optimization 173
Table 16-6: Drilling and Blasting design parameters 175
Table 16-7: Drilling Operating Conditions 175
Table 16-8: Loading & Transport Operating Parameters 176
Table 16-9: Workforce Factors 178
Table 16-10: Production Schedule: 88 ktpd 181
Table 16-11: Operating and Primary Equipment Fleet Schedule: 88 ktpd 184
Table 16-12: Operating and Auxiliary Equipment Fleet Schedule: 88 ktpd 185
Table 16-13: Yearly Staff: 88 ktpd 187
Table 16-18: Production Schedule: 88 - 176 ktpd 196
Table 16-19: Operating and Primary Equipment Fleet Schedule: 88-176 ktpd 199
Table 16-20: Operating and Auxiliary Equipment Fleet Schedule: 88-176 ktpd 200
Table 16-21: Yearly Staff: 88-176 ktpd 201
Table 16-26: Mine Plan Summary 209
Table 16-27: Primary Equipment for each case 210
Table 17-1: Summary of Key Process Design Criteria 213
Table 17-2: Process Plant Equipment - Crushing 226

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Table 17-3: Process Plant Equipment Grinding 227
Table 17-4: Process Plant Equipment Flotation 228
Table 17-5: Process Plant Equipment Tailing Handling / Concentrate Handling 229
Table 17-6: Process Plant Equipment Molybdenum Flotation 230
Table 18-1: Make-up Water Demand 234
Table 18-2: Average Daily Peak Water Flow by Month (m
3
/s)
*
238
Table 18-3: Electrical System Requirements 240
Table 18-4: Excavation and Fill per Case 241
Table 18-5: TSF Capacity 242
Table 19-1: Outlook for the Copper Price 253
Table 19-2: Concentrates - Commercial Terms Assumptions (Coffey, June, 2013) 255
Table 21-1: Capital Cost Estimate (Nominal values) 262
Table 21-2: Estimation Basis by Area 263
Table 21-3: Unit Construction Values 264
Table 21-4: Indirect Costs Detail (Nominal values) 264
Table 21-5: Estimation Period by Case 266
Table 21-6: Total Operating Costs (Nominal values) 266
Table 21-7: Unit Operating Costs ($/ t plant feed; nominal values) 266
Table 21-8: Mine Operating Costs by Expense Item (Nominal values) 267
Table 21-9: Mine Unit Operating Costs by Expense Item (Nominal values) 268
Table 21-10: Process Plant Operating Cost by Expense Item (Nominal values) 269
Table 21-11: Process Plant Unit Operating Cost by Expense Item (Nominal values) 269
Table 21-12: Infrastructure and Administration Operating Costs by Expense Item (Nominal values) 270
Table 21-13: Infrastructure and Administration Unit Operating Costs by Expense Item (Nominal values) 270
Table 21-14: Average Cash Costs 271
Table 22-1: Main Economic Parameters 274
Table 22-2: Mining Royalty Tax Scale for Mining Exploitation under 50,000 t of Equivalent Copper 277
Table 22-3: Mining Royalty Tax Scale for Mining Exploitation over 50,000 t of Equivalent Copper 277
Table 22-4: Production Summary 278
Table 22-5: Production Detail by Year 279
Table 22-6: Revenue by Metal (Nominal values) 281
Table 22-7: Copper Resource Residual Values 281
Table 22-8: Summary of Pre-Tax Economic Results 282
Table 22-9: NPV Sensitivity Analysis Cu Price Variation 283
Table 22-10: IRR Sensitivity Analysis Cu Price Variation 283
Table 22-11: NPV Sensitivity Analysis Mo Price Variation 286
Table 22-12: NPV Sensitivity Analysis Capex Variation 289

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Table 22-13: NPV Sensitivity Analysis Opex Variation 289
Table 22-14: NPV Sensitivity Analysis Discount Rate Variation 292
Table 22-15: Summary of Post-Tax Economic Results 294
Table 26-1: Tasks and Budget Estimate of the Costs to Pre-feasibility Study 300

1
1 SUMMARY
1.1 Introduction
Los Andes Copper Ltd. commissioned Coffey Consultora y Servicios SpA.(Coffey) to prepare a
Technical Report for the Vizcachitas copper / molybdenum porphyry project (the Project, the
Property, Vizcachitas Deposit) to the standards required by National Instrument 43-101 (NI 43-
101) for Preliminary Economic Assessment (PEA). This is broadly in line with AACE
International recommendations for a class 5 study. The Project operating and capital costs were
developed to an accuracy of 35 %.
The PEA evaluated different process throughput options that maximize Net Present Value (NPV)
by increased throughput capacity or by minimized initial investment.
Of these options, 4 are presented in the PEA document, these being the options which reported
the highest NPVs.
The Vizcachitas copper-molybdenum porphyry deposit is located in Chiles Region V, in the
province of San Felipe and is wholly owned by Los Andes Copper Ltd. (Los Andes Copper), a
TSX listed, Vancouver based company. This Technical Report has been prepared for Los Andes
Copper by or under the supervision of Qualified Persons within the meaning of NI 43-101 in
support of Los Andes Coppers disclosure of scientific and technical information for the Project.
The principal consultants used in the preparation of this document are:
Coffey: Resource Estimate, pit design, mine planning and
geotechnical revision
Alquimia Conceptos S.A. Engineering, infrastructure, costing and cash flow.
1.2 Project Location
The Vizcachitas Property is located at 32 24 27 S and 70 25 30W in the Chilean Andes (See
Figure 4-1: Vizcachitas Project Location).
The central UTM coordinates are 6,413,500N and 366,000E (Datum WGS84, Zone 19H).
The Property is situated approximately 150 km northeast of Santiago de Chile and 46 km
northeast of the town of Putaendo, in the Province of San Felipe. Of the total distance between
the Project and Santiago, approximately 120 km are paved and 30 km are gravel and
unimproved dirt roads. Total driving time from Santiago is about three hours.

2
1.3 Property Ownership
Compaa Minera Vizcachitas Holding (CMVH) and Sociedad Legal Minera San Jos Una de Lo
Vicua, El Trtaro y Piguchn de Putaendo (SLM San Jose), have good and valid title to the
mining properties listed in Table 4-1 and Table 4-2. The locations of the claims are shown in
Figure 4-2 and Figure 4-3. CMVH and SLM San Jose are wholly-owned subsidiaries of Los
Andes Copper.
Exploration claims permit the title holder to assess the land for mineral potential while in good
standing and are valid for two years, after which they must be converted to exploitation claims,
or a new application for an exploration claim must be made. Mining claims are of perpetual
duration, subject only to timely payment of the annual mining taxes payable to the Chilean
Governmental Authorities.
The Project includes 38 established mining claims covering an area of 7,000 ha and 81
established exploration claims totalling 22,500 ha. All claims are held 100 % by CMVH or wholly
owned subsidiaries of Los Andes Copper. The exploration claims overlie the mining claims, a
common practice in Chile to protect the underlying claims.
Coffey is not qualified to provide a legal opinion on the good standing of the properties and has
relied upon a letter provided by the Law Firm Domnguez, Ossa, Long & Macaya Abogados
(DOLM Abogados) who acts as CMVHs lawyers in Chile. This letter dated January 10, 2014
states that:
We hereby inform you that currently the mining property of Compaia Minera
Vizcachitas Holding is composed of 119 concessions, 37 of which are exploitation
concessions and 81 exploration concessions. In addition, Sociedad Legal Minera San
Jos is the owner of one exploitation concession.
All of these concessions were legally constituted as they were granted by the
court of Putaendo and duly registered in the Mining Registry of such city. Additionally,
as of this date these concessions do not have any outstanding taxes or permits that
need to be paid for.
CMVH has signed a legal agreement with the land owners giving it access to the Vizcachitas
Project. This enables the company to carry out exploration and drilling activities. This is an
annual agreement with provision for automatic annual renewals.
In accordance with the Chilean Mining Code, any titleholder of a mining concession, whether for
exploration or exploitation, has the right to establish an easement over the surface land, as
required for the appropriate exploration or exploitation of its concession. In the event that the
surface property owner does not grant the easement voluntarily, the titleholder of the mining

3
concession may request said easement before the Courts of Justice who shall grant it upon
determination of the compensation for losses as deemed fit.
1.4 Property Description
Access to the Vizcachitas Property by four-wheel drive vehicle is possible during much of the
year but is subject to some interruptions following storms or spring runoff when high water
conditions in the Rocin River prohibit stream crossings.
The Property is located in the western foothills of the Andes at an average altitude of 2,100
masl.
The climate at site is warm-temperate with six dry months in summer and winter rainfalls. The
average precipitation is approximately 300 millimeters per year. Precipitation falls as both rain
and snow between April and October. The summer temperatures vary from a few degrees above
zero at night to 35 C in the day. In winter the temperatures are 10 to 15 C lower. The
relatively low elevation means that it is possible to explore all year round and to drill through the
winter months.
The Rocin River bisects the Property and deeply incises the valley across the steep mountain
slopes.
Elevations range from below 1,800 m to over 3,400 m with an average elevation of
approximately 2,100 m. The exploration camp at Vizcachitas is located at approximately 1,940
m.
Vegetation, which consists of bushes and trees a few tens to hundreds of centimeters in height,
is located in the valley bottoms close to the river where water availability make plant life
possible.
Access and topography do present certain challenges to the Project and they require to be
addressed in the engineering phase. Other projects such as Andina, Los Bronces and Los
Pelambres have all been developed in similar terrain.
1.5 Geology and Mineralization
The dominant geological feature of this region is the north-south trending Neogene (23 - 2.5 Ma)
metallogenic belt that extends along the slopes of the Andean Cordillera in Chile and Argentina.
At Vizcachitas, there are at least six intrusive rock types, six porphyritic rock types and eight
distinct types of breccia, hosted by the Oligocene (23-44 Ma) andesite of the Abanico Formation
(Jara et al. 2013). Dates obtained by GMC on biotite from four intrusive rocks yielded ages
between 10.4 and 12 0.3 Ma (Osterman, 1997).The deposit covers an area of approximately

4
2.6 km
2
and the hydrothermal alteration system at Vizcachitas appears to affect an area of
approximately 3.5 km
2
. The Vizcachitas deposit shows a typical core of quartz-sericitic and
potassic alteration surrounded by propylitic alteration outside of the quartz-sericite zone.
Hypogene mineralization consists of veinlet-controlled and disseminated pyrite, chalcopyrite and
molybdenite. Primary mineralization occurs in the tonalite, diorite, granodiorite and andesite
zones. Bornite and tetrahedrite/tennantite are also present in minor quantities.
Supergene mineralization occurs in the form of sooty or massive chalcocite and covellite
completely replacing or coating pyrite and chalcopyrite. Ferrimolybdite, a secondary
molybdenum mineral, malachite, azurite and cuprite are also present in minor quantities
(Brockway, 1998).
1.6 Drilling
From 1993 three different companies have completed drilling campaigns on the Property. A total
of 146 diamond drill holes have been drilled on the Property, totalling 40,383 metres. The total
metres drilled by each company is summarised in Table 1-1.
Table 1-1: Drilling Summary at Vizcachitas

1.7 Mineral Processing and Metallurgical Testing
The Vizcachitas deposit has been subject to a number of physical characterisation and
metallurgical test programmes to determine process route and expected recoveries. Bond work
and abrasion indices have defined the mineral physical characteristics used in the development
of this Report. Both leach and flotation test work has been carried out on Vizcachitas samples to
determine likely process route and recovery estimations.
Observations and conclusions are summarized below:
Mineralogical analysis shows that the principal copper mineral was chalcopyrite.
In general, the results of the flotation tests show high grades and recoveries for both
copper and molybdenum.
Company Period Drill Hole Numbers No. of Drill Holes Total Meterage (m)
Placer Dome 1993 VP-01 to VP-06 6 1,952.95
General Minerals 1995-1998 V-01 to V-63 61 15,814.90
Los Andes Copper 2007-2008 LAV-064 to LAV-142 79 22,615.60
Total 146 40,383.45

5
The results of the cleaning flotation tests indicate that three cleaner stages must be
considered to achieve high final concentrate grade.
Based on the flotation tests, an overall recovery of 90 % Cu and 75 % Mo can be expected
Copper and molybdenum rougher recovery of 94 % and 89 % respectively can be
expected.
Copper and molybdenum cleaner recovery of 96 % and 95 % respectively can be
expected.
The results of the agitated leaching tests showed that the samples tested had a high
content of chalcopyrite (78 %) and a low acid soluble copper content (<10 %).These
samples generally resulted in low copper recoveries (<15 %).
The best results were obtained by bacterial leaching for samples with low chalcopyrite
content.
The best column leaching results showed copper recoveries of approximately 40 %. The
samples tested also contained high chalcopyrite content.
Further evaluation of the oxide mineral noted that the average grade of soluble copper is
approximately 0.051 % and that actual volume of true oxide material is low.
The majority of that domain previously logged as oxide contains a large proportion of
sulphide mineralisation and metallurgical test work previously completed indicated that the
actual leach recoveries were low.
1.8 Mineral Resource Estimate
Table 1-2 shows the mineral resources estimated within the Vizcachitas deposit, with an
Effective Date of January 23, 2014. The estimate was based on the drill hole sample assays,
geological model interpretation and geostatistical analysis employing industry standard methods
and was classified in accordance to the CIM standards on Mineral Resources and Mineral
Reserves (CIM 2010).
Mineral resources are reported at Copper equivalent (Cu Eq) cut-off under prevailing conditions.
At 0.3 % Cu Eq cut-off, the Indicated Resources are 1,038 Mt @ 0.434 % Cu Eq, (0.373 % Cu
and 0.012 % Mo) and Inferred Resources are 318 Mt @ 0.405 % Cu Eq, (0.345 % Cu and 0.013
% Mo).

6

Table 1-2: Estimated Resource at Selected Cut-off Grades

Copper equivalent grade (Cu Eq) has been calculated using the following expression:
Cu Eq (%) = CuT (%) + 4.95 x Mo (%), where 4.95 reflects the Mo/Cu price ratio
The metal prices used throughout this PEA are: $2.75 /lb. Cu, $13.6 /lb. Mo, this is based on
conservative assessment of consensus opinion. The quantity and grades are estimates and are
rounded to reflect the fact that they are an approximation.
Mineral Resources are not Mineral Reserves and do not demonstrate economic viability. There
is no certainty that all or any part of the Mineral Resource will be converted to Mineral Reserves.
Coffey knows of no existing environmental, permitting, legal, socio-economic, marketing, political
or other factors that might materially affect the Mineral Resource estimate.
1.9 Mineral Reserves Estimate
The Project has no Mineral Reserves; all mineralization is considered as Mineral Resources.
INDICATED
Cut-Off Tonnage Cu Eq Cu Grade Mo Grade Cu Mo
(Cu Eq %) Mt % % % Mlb Mlb
0.20 1,317 0.396 0.341 0.011 9,913 318
0.25 1,191 0.414 0.356 0.012 9,353 305
0.30 1,038 0.434 0.373 0.012 8,539 281
0.35 824 0.462 0.396 0.013 7,201 240
0.40 566 0.501 0.431 0.014 5,374 179
0.45 368 0.543 0.467 0.015 3,788 125
0.50 244 0.588 0.509 0.016 2,515 79
INFERRED
0.20 521 0.343 0.296 0.010 3,407 111
0.25 404 0.376 0.322 0.011 2,873 101
0.30 318 0.405 0.345 0.013 2,415 88
0.35 212 0.443 0.372 0.015 1,734 70
0.40 130 0.488 0.402 0.018 1,152 51
0.45 76 0.533 0.428 0.022 714 36
0.50 40 0.584 0.466 0.024 415 22

7
1.10 Mining Methods
The Vizcachitas deposit is amenable to conventional, large-scale, open pit mining methods.
Evaluations were conducted to determine potentially economic pit limits and the mining phase
(pushback) development sequence for a number of process plant throughputs ranging from 16
ktpd to 176 ktpd. Two general options were studied, and within these options additional cases
considering different throughput capacities and growth possibilities were evaluated as follows:
Option 1: Studied in order to reach maximum throughput capacity. This option includes
five cases as follows:
Case 1.1: Throughput of 32 ktpd
Case 1.4: Start with a throughput of 32 ktpd and with a later expansion after 6 years
of operation, reaches a final throughput of 88 ktpd
Option 2: Studied in order to start with minimum investment. This option includes three
cases which are as follows:
This Report presents the four options which returned the highest NPVs:
Case 1.2: 88 ktpd
Case 1.3: 176 ktpd
Case 1.5: 88 ktpd with a step up in production to a final throughput of 176 ktpd
Case 2.2: 44 ktpd

8
Mining phases were designed and used to estimate contained mineral resources, from which a
mine production schedule was developed.
Slope angles were estimated for the sectors of each pit designed based on the
recommendations of the 1999 Golder Associates report, Site Technical Evaluation Report
Vizcachitas Copper/Molybdenum Project.
Mine fleet, scheduling, manpower and costs were developed for each production scenario
evaluated and are as per the detail in the relevant sections of this Report.
Table 1-3: Summary of Final Pit Mine Production

1.11 Process Design and Recovery
The Vizcachitas concentrator operation was considered for a number of throughputs from 16
ktpd to 176ktpd. The process plant will process run-of-mine (ROM) material delivered from the
open pit. Copper and molybdenum concentrates and tailings will be produced. The proposed
process includes crushing and grinding of the ROM material, bulk copper-molybdenum rougher
and cleaner flotation, regrinding, copper-molybdenum separation, molybdenum flotation, and
dewatering of copper and molybdenum concentrates.
The flotation tailings will be thickened before placement in a tailings storage facility (TSF).
Copper and molybdenum concentrates will be shipped by road to a nearby railhead and from
there delivered to a port facility for shipment to final consumer. See Table 14-4 for additional
detail.
Case
Total
capacity
Mineral CuT Mo
CuT Metal
in situ
Mo Metal
in situ
Strip Ratio
Operating
Cost
ktpd Mt % % Mlb Mlb Mt USD/t*
1.2 88 1,279 0.346 0.011 9,755 310 0.81 2.51
1.3 176 1,666 0.334 0.011 12,270 404 1.03 2.23
1.5 88 - 176 1,666 0.334 0.011 12,270 404 1.03 2.38
2.2 44 1,077 0.358 0.011 8,500 261 0.79 2.84
(*) Referred to processed tonnes of mineral

9
Table 1-4: Summary of Concentrates and Fine Metal produced

1.12 Project Infrastructure
The Project is in close proximity to extensive infrastructure, including port facilities, railway lines
and high tension substations. The Project further benefits from a low altitude location permitting
year round exploration and project development.
The Projects location in central Chile, 150 km northeast of Santiago, means that a significant
amount of the infrastructure to support a large mine is located relatively close by. The towns of
Los Andes and San Felipe are used as a base for many employees and subcontractors who
work at the Codelco Andina mine. Anglo Americans Chagres smelter and Codelcos Ventanas
smelter are within 140 km of the Project. The port of Ventanas is 140 km away and currently
handles copper concentrate from other mining operations in the district. There is an operating
railway line in San Felipe with connections to the two smelters and the port of Ventanas. The
PEA envisages the shipment of copper concentrate by rail to the Ventanas port.
There are several large electrical substations near to the Project. For the PEA, the Nogales
substation for 220 kV supply and the Las Vegas substation for 110 kV supply were considered.
Los Andes Copper contemplates the construction of a 29 MW run-of-river hydro electric plant
(Hydro Electric Plant) in the Rocin River. This plant is expected to be built and in operation well
before the construction of the mine facilities.
The Rocin River flows through the project site and is a tributary of the Putaendo and the
Aconcagua Rivers. Los Andes Copper currently owns consumptive water rights for a portion of
the projected water requirements with an extraction point from the Aconcagua River
approximately 80 km from the project site. For the Project to proceed, Los Andes Copper will
need to secure additional consumptive water rights and make that water available at the project
site.
Total
capacity
Operating
Cost
ktpd Cu Mo Cu Mo USD/t*
1.2 88 13,111,528 215,917 3,933,459 101,502 7.47
1.3 176 16,693,910 278,044 5,008,173 133,461 7.37
1.5 88 - 176 16,691,531 277,658 5,007,459 133,276 7.43
2.2 44 7,019,676 99,479 2,105,903 47,750 8.12
(*) Referred to tonnes of plant feed
Case
Concentrate Produced
(t)
Fine Metal Produced
(t)

10
The Project is a green field site and the local infrastructure will need to be built. Infrastructure will
include the process water supply, Rocin River diversion tunnel, power supply from the main grid
substation to the project site, access road upgrade, concentrate storage and concentrate loading
facilities at the railhead.
1.13 Marketing Studies
The considerations used for the marketing and handling of copper and molybdenum
concentrates have been derived by using: contacts with smelters, recent data from other
projects and information in the public domain.
Supply and Demand
In the short term, existing inventories are expected to be drawn down as new projects and
expansions of existing operations are brought to completion. When complete, these operations
are expected to place downward pressure on copper pricing until later in the decade. At that
point, steadily increasing demand is expected to overtake the increases in supply.
Uncertainty in the supply and demand scenario has been experienced due to new or expanded
production facilities coming online later than originally planned; cancellation of new or expanded
production facilities due to market, general economic, or company financial conditions; and
involvement in this sector by governments of certain large consumer/producer countries.
Smelter Capacities and Utilization
For the most part, smelter capacity is fixed. The relationship between capacity and utilization
dictates a smelters profitability; hence its setting of treatment charges (TC), refining charges
(RC) and other costs.
In the long term, TCs and RCs are expected to increase to cover additional smelter costs
particularly as environmental legislation becomes more stringent on airborne discharge and
other effluents.
Ocean Freight
Currently, the availability of vessels significantly exceeds the demand. Opportunities for
reasonable freight costs are available, particularly with negotiation of long-term freight contracts.
Future Metals Pricing
General industry consensus is for copper price to stabilise as developing countries such as India
and China take up production once again. The recent correction in copper prices has seen
prices fall from over $4 a pound to approximately $3 a pound. China will keep leading copper

11
consumption demand in 2013, with an expected 7.7 % growth
1
, followed by India and Brazil.
European demand is expected to remain unchanged. In conjunction with continued demand
upswing, production is likely to lag for a time until new operations can be brought on line. Mine
expansions are replacing diminishing production without real significant growth. New mine
developments usually produce under 100k tons of copper per year. Capex and operational cost
escalations have challenged both current and future operations delaying start up. Conventional
merger and acquisition (M&A) activities where larger companies buy projects from smaller
companies has largely ceased as large scale miners concentrate on cost reduction exercises.
Increasing community awareness has created entry and expansion barriers thus increasing
project development time through challenges to permitting and increased community programme
requirements.
Consensus copper and molybdenum values short and long term are as shown in Table 1-5 and
Table 1-6. The PEA has been carried out using metals values of USD 2.75 /lb. copper and USD
13.6 /lb. molybdenum as the base case.
Table 1-5: Copper Price Forecast

Table 1-6: Molybdenum Price Forecast (Source: Bloomberg 2013)

1
International Monetary Fund World Economic Outlook Update July 2013 http://www.imf.org/external/pubs/ft/weo/2013/update/02/index.htm
2013 2014 2015 2016 2017 2018
SocGen (July 2013) 337 311 295 272 295 318
TD Securities (May 2013) 343 325 - - - -
UBS (July 2013) 345 286 - - - -
World Bank (July 2013) 322 320 318 317 316 315
IMF (March 2013) 354 356 358 361 363 363
EIU (July 2013) 339 348 361 370 380 -
Cochilco (July 2013) 327 315 - - - -
Average 338 323 333 330 339 332
Entity
cUSD/lb
Year
$ of the day
2013
$ of the day
2014
$ of the day
2015
Constant
Long-term
Molybdenum (US$/lb) 14.00 - 15.00 12.50 - 14.00 12.00 - 13.00 13.00

12
1.14 Capital Cost Estimate
As noted in Section 1.10 several cases were studied in this PEA. Capital cost estimates were
prepared for all cases, however only those four cases selected are presented in this Report.
Capital cost estimates generated are composed of the following:
Direct cost of construction and assembly: Acquisitions of equipment supply, labour,
auxiliary equipment for construction and building materials are considered.
Indirect costs of project: Transportation and insurance of equipment, general spare parts,
vendors representatives, detailed engineering, EPCM, start up and owner costs are
considered.
Contingency estimation based upon direct cost plus indirect cost.
Table 1-7 summarizes initial, sustaining and deferred capital requirement.

13
Table 1-7: Capital Cost Summary (Nominal values)

1.15 Operating Costs Estimate
Operating costs have been estimated for the operating areas of Mining, Process Plant,
Infrastructure and Administration. Costs were reported under subheadings related to the function
of each of the areas identified.
The operating cost estimates were based on energy prices of 0.12 USD/kWh for electricity and
1.20 USD/l for diesel fuel. Labour costs for mine and process plant consider only up to
superintendent and all superior positions are considered as administration costs.
The operating costs are considered to have accuracy of 35 %, based on the assumptions
listed in this section of the report.
All estimates have been completed for Life of Mine (LOM) or a maximum of 40 years operations.
Deferred
Capital Cost
Case 1.2 Case 1.3 Case 1.5 Case 2.2 Case 1.5
88 ktpd 176 ktpd 88-176 ktpd 44 ktpd 88-176 ktpd
kUSD
Direct Cost 1,278,120 1,845,496 1,278,095 912,035 695,760
Diversion Rocin River 86,077 86,077 86,077 86,077 0
Access 16,105 19,325 16,105 14,817 9,660
Bridges 50,000 50,000 50,000 50,000 0
General Facilities 41,450 50,343 39,589 37,089 16,660
Mine 424,305 566,776 372,930 288,655 203,397
Process Plant 329,506 626,070 335,879 205,738 305,789
Tailings Storage Facility 39,276 56,299 39,496 32,237 7,052
Tailings Transport System 96,192 117,815 96,192 74,311 90,370
Water Reclaim System 51,876 73,780 51,706 40,789 51,706
Water Supply System 12,956 22,351 13,461 6,374 11,125
Power Supply System 130,376 176,660 176,660 75,948 0
Indirect Costs 264,539 381,971 264,534 188,768 144,005
Contingency 462,798 668,240 462,789 330,241 251,929
Sustaining Capital 538,313 717,926 591,049 193,442 0
Tailings Storage Facility 39,276 67,654 50,034 0 0
Tailings Transport System 96,192 141,578 121,858 0 0
Water Reclaim System 51,876 88,661 65,502 0 0
Mine 350,968 420,033 353,655 193,442 0
Total Capital Costs 2,543,768 3,613,633 2,596,466 1,624,486 1,091,694
Description
Initial Capital Cost
kUSD

14
Table 1-8 shows estimation period by case.
Table 1-8: Estimation Period by Case

Table 1-9 summarizes operating costs estimate and average Cu cash cost with and without Mo
credit.
Table 1-9: Unit Operating Costs and Average Cash Cost (Nominal values)

1.16 Economic Analysis
Economic parameters used for the evaluation are shown in Table 1-10.
Table 1-10: Main Economic Parameters

There is no certainty that the PEA results will be realized. Since the analysis is based on a cash
flow estimate, it should be expected that actual economic results might vary from these results.
The PEA has been completed to a level of accuracy of 35 %. The PEA is not a preliminary
feasibility study or feasibility study.
Case 1.2 Case 1.3 Case 1.5 Case 2.2
88 ktpd 176 ktpd 88-176 ktpd 44 ktpd
LOM
(40 years)
LOM
(28 years)
LOM
(30 years)
40 years
Mine USD/t 2.51 2.23 2.38 2.84
Plant USD/t 7.32 7.23 7.28 7.42
Infrastructure USD/t 0.48 0.39 0.43 0.35
Administration USD/t 1.07 1.01 1.03 1.14
Total USD/t 11.38 10.85 11.12 11.75
Average Cu Cash Cost w/o Mo Credit USD/lb 2.03 2.01 2.05 1.96
Average Cu Cash Cost w/ Mo Credit USD/lb 1.71 1.69 1.73 1.68
Unit Description
Description Value Unit
Cu Price 275 cUSD/lb
Mo Price 13.6 USD/lb
Estimate Basis 3rd Qtr 2013 US$
Inflation None ---
Currency Fluctuation None ---
NSR 1.87 %
IVA (VAT) Excluded ---

15
At present Chilean income tax is 20 %, however there are several factors which impact the
overall amount companies pay which may include the amount of profit retained, the profits
reinvested in the country, the capital structure of the project and others. Dividends repatriated
are subject to additional taxes which can bring the nominal income tax to 35 %. Mining
companies are also levied by a specific tax on mining operating profits (Mining Royalty Tax). A
more detailed summary of the tax regime in Chile is presented in Section 22.3 of this Report.
The model includes closure costs, committed as required by the Chilean legislation and also
where applicable includes a valuation for remaining copper in the ground of 13.75 cUS/lb. Cu
based on remaining copper for each option pit selected after 40 years operational mine life.
Closure costs for each option considered have been calculated as 5 % of the initial direct capital
costs and where an expansion has been considered a further 5 % of the direct capital assigned
to process plant capital cost. Further details of this closure cost can be found in Section 22.1
and of this Report.
Coffey understands from correspondence from Los Andes Copper Corporate Secretary that
there is a Net Smelter Return (NSR) between Los Andes Copper and third parties as follows:
The San Jos 1:3000 concession has a NSR of 0.51 % for production from an
underground operation and 1.02 % from an open pit operation.
The remaining concessions that were held before 2010 have NSR of 1 % for production
from an underground operation and 2 % from an open pit operation.
Using these details the relative volumes of mineral from the concession areas which are subject
to the NSR was calculated to generate a weighted average NSR over the whole property of 1.87
%, this NSR has been included in the economic model. This is further discussed in Section 22.6
of this Report.
Table 1-11 The economic evaluation after income tax includes several significant assumptions
described in Section 22.8.
Table 1-12 show the estimated before and after income tax net present value (NPV), internal
rate of return (IRR) and payback periods for the cases presented. The Mining Royalty Tax is
deducted in all cases. This is further discussed in Sections 22.6, 22.7 and 22.8 of this Report.

16
Table 1-11: Economic Evaluation Summary before Income Tax

The economic evaluation after income tax includes several significant assumptions described in
Section 22.8.
Table 1-12: Economic Evaluation Summary after Income Tax

1.17 Conclusions and Recommendations
The Project is a large, medium grade copper deposit which can be exploited using conventional
open pit and concentrator technology.
No fatal flaws were identified during the course of the Vizcachitas Project study. The
recommendations are largely based on normal metallurgical and other development test work
which would be part of project development.
The financial analysis indicates that the larger alternatives studied for the Project have a net
positive cash flow and an acceptable internal rate of return and could support the progression to
mine development.
88 ktpd 176 ktpd 88 - 176 ktpd 44 ktpd
Net Present Value - 8% kUSD 421,447 745,818 411,212 2,963
IRR % 10.67% 11.43% 10.04% 8.02%
Payback Period(*) years 6.2 5.9 8.9 9.9
(*) Referred to the first operation year
Description Unit
No Leverage
Net Present Value - 8% kUSD 116,048 274,446 62,412 -154,764
IRR % 8.84% 9.45% 8.36% 6.62%
Assumed Leverage
IRR % 10.60% 11.54% 9.93% 7.29%
Description Unit

17
At the metals prices used, the option which gives the highest NPV and fastest project payback
period is that of 176,000 tonnes per day. However it should be noted that there are lower
throughput, lower cost options which also provide reasonable NPV and payback and which
reduce initial capital expenditure. The different NPV and payback periods are presented in Table
1-11.
Opex and Capex considerations used for the Project represents those expected for a project of
this type exhibiting average characteristics of ore abrasiveness and hardness; grades and rock
type characterizations as indicated in the geological section. Operating costs were generated
from first principles and bench marked against other operations. Capital costs were based on
quotations for mining equipment, database information and were also benchmarked against
similar operations
The mine plan is appropriate to the mineralization and adequately reflects the deposit type,
dimensions and host rock characterization
Additional geotechnical and hydrological studies are required particularly to model surface water
flows into the Rocin River.
Recommendations
Based on the results of the PEA, the Qualified Persons recommend that Los Andes Copper
complete a pre-feasibility study (PFS) to further define the Project alternatives in order to more
accurately assess its technical and economic viability and to support permitting activities.
When all additional metallurgical and other test work has been completed, a trade-off evaluation
should confirm that the considerations used in selecting the 176,000 t/d option as the preferred
option are still valid and that it is the option to develop to PFS level.
Further options considering transport to port and concentrate treatment should be evaluated in
trade off studies prior to initiating pre-feasibility studies.
Additional metallurgical studies regarding material characterization and metals recovery should
be completed which may provide further input into process plant design and optimization.
Mine fleet optimization studies and mine scheduling can be further developed in order to
improve mine scheduling and also plant and equipment matching.

18
2 INTRODUCTION AND TERMS OF REFERENCE
2.1 Purpose of the Technical Report
Los Andes Copper Ltd. commissioned Coffey to prepare a Technical Report for the Vizcachitas
copper / molybdenum Project to the standards required by National Instrument 43-101 for
Preliminary Economic Assessment. This is broadly in line with AACE International
recommendations for a class 5 study. The Project operating and capital costs were developed to
an accuracy of 35 %.
The scope of the work defined was to evaluate a range of project throughputs which were either
designed to maximise resource exploitation or minimise initial capital expenditure. Those cases
which reported the highest NPVs outcome are presented in this Report.
The Vizcachitas copper-molybdenum porphyry deposit is located in Chiles Region V, in the
province of San Felipe and is wholly owned by Los Andes Copper Ltd., a TSX listed, Vancouver
based company. This Technical Report has been prepared for Los Andes Copper by or under
the supervision of Qualified Persons within the meaning of NI 43-101 in support of Los Andes
Coppers disclosure of scientific and technical information for the Project. The principal
consultants used in the preparation of this document are:
Coffey: Resource Estimate, pit design, mine planning and
geotechnical revision
Alquimia Conceptos: Engineering, infrastructure, costing and cash flow.
2.2 Frequently Used Acronyms, Abbreviations, Definitions, and Units of Measurement
All units in this report are based on the International System of Units (SI), except industry
standard units, such as troy ounces for the mass of precious metals. All currency values are in
United States Dollars (USD or $) unless otherwise stated.
This report uses abbreviations and acronyms common within the minerals industry. Table 2-1
identifies the terms and abbreviations used in this Report.

19
Table 2-1: Units of Measurement

Unit
Abbreviation or
Symbol
Abrasion Index Ai
American Dollar USD
American Dollar Cent cUSD
Centigrade C
Centimetre cm
Chilean Peso CLP
Copper Cu
Copper cyanide CuCN
Copper equivalent CuEq
Cubic metre m
3
Cubic foot/feet ft
3
Cubic metre per hour m
3
/h
Day d
Foot/feet ft
Gram/litre g/l
Hour h
Horse power HP
Insoluble copper ICu
Kilogram kg
Kilogram per tonne kg/t
Kilo tonne kt
Kilo tonne per day ktpd
Kilometre km
Kilovolt kV
Kilovolt amp kVA
Kilowatt kW
Kilowatt hour kWh
Kilowatt hour per cubic metre kWh/m
3
Kilowatt hour per metric tonne kWh/t
Kilowatt hour per short tonne kWh/st
Life of mine LOM
Litre l

20
Table 2-2: Units of Measurement (continuation)

2.3 Effective Dates
The Effective Date of this report is taken to be January 23, 2014, the date that Los Andes
Copper received approval from the TSXV for the acquisition from Turnbrook Mining Ltd. of the
non-consumptive water rights over a section of the Rocin River, Putaendo, Fifth Region, Chile,
together with the engineering and other studies and reports for the development of a run-of-river
hydroelectric project generation facility (collectively, the Hydro Electric Plant). The Hydro Electric
Unit
Abbreviation or
Symbol
Litre per second l/s
Maximum max
Megawatt MW
Mega Volt Ampere MVa
Metre m
Metre per hour m/h
Metre per second m/s
Metres above sea level masl
Metric tonne t
Metric tonne per day tpd
Metric tonne per hour tph
Milligram per litre mg/L
Millimetre mm
Million M
Million tonnes per annum Mtpa
Minutes min
Molybdenum Mo
Part per million ppm
Percent %
Pounds lb
Run of mine ROM
Short ton st
Specific gravity SG
Square metres
m
2
Square metres per tonne per day
m
2
/tpd
Tonnes per hour tph
Tonnes per day tpd
Weight (mass) wt
Weight (mass) per cent % w/w
Work Index W
i
Year y

21
Plant will make a significant contribution to the cash flow of the Project. The dates for critical
information used in this report are:
The Mineral Resource estimate and block model were completed on June 1, 2013.
The current personal inspection by the Qualified Persons was on June 4, 2013.
The final PEA mine plans were issued on June 18, 2013.
PEA Mineral process engineering and capital cost estimate were completed on June 28,
2013. A review of the cost estimates has been carried out to confirm that the cost
estimates are current at the time of the PEA publication.
Completion of the review of the project infrastructure was January 23, 2014.
Acquisition of the Hydro Electric Plant was January 23, 2014.
There were no material changes to the scientific and technical information of the Project
between the Effective Date and signature date of the Report.

22
3 RELIANCE ON OTHER EXPERTS
3.1 Other Independent Expert Persons
Preparation of this Technical Report has depended on documentation generated by Los Andes
Copper, Coffey and Alquimia. It also includes a number of documents with public and private
information provided by Los Andes Copper and information provided in various previous
Technical Reports listed in Section 27 of this Report.
The authors believe that the information provided and relied upon for preparation of this
Technical Report is accurate at the time of the Report and that the interpretations and opinions
expressed in them are reasonable, based on current understanding of mining and processing
techniques and costs, economics, mineralization processes and the host geological setting. The
authors have made reasonable efforts to verify the accuracy of the data relied upon in this
Report.
The results and opinions expressed in this Report are conditional upon the aforementioned
information being current, accurate, and complete as of the date of this Report, and the
understanding that no information has been withheld that would affect the conclusions made
herein. The authors reserve the right, but will not be obliged, to revise this Report and
conclusions if additional information becomes known to the authors subsequent to the date of
this Report.
The authors of this Technical Report are not qualified to provide extensive comment on legal
issues associated with the Property. For portions of Section 4 dealing with the types and
numbers of mineral tenures and licenses, the nature and extent of Los Andes Coppers title and
interest in the Property, the terms of any royalties, back-in rights, payments or other agreements
and encumbrances to which the Project is subject, Coffey has relied upon the legal opinion of
DOLM Abogados for the land tenure and Los Andes Company Secretary for information related
to the net smelter returns applicable to the Project. Copies of these opinions are included in
Appendix A

23
4 PROPERTY DESCRIPTION AND LOCATION
The Vizcachitas Property is located at 32 24 27 S and 70 25 30W in the Andes Mountains of
Chile (See Figure 4-1: Vizcachitas Project Location).
The central UTM coordinates are 6,413,500N and 366,000E (Datum WGS 84, Zone 19H).

24
Figure 4-1: Vizcachitas Project Location (source: Los Andes Copper, June, 2013)
4.1 Land Tenure
Exploration claims permit the title holder to assess the land for mineral potential while in good
standing and are valid for two years after which they must be converted to exploitation claims or
a new application for an exploration claim must be made. Mining claims are perpetual, subject
only to timely payment of the annual mining taxes payable to the Chilean Governmental
Authorities.
The Project includes 38 established mining claims covering an area of 7,000 ha and 81
established exploration claims totalling 22,500 ha. All claims are held 100 % by CMVH or wholly
owned subsidiaries of Los Andes Copper. The exploration claims overlie the mining claims, a
common practice in Chile to protect the underlying claims. Table 4-1 and Table 4-2 and Figure
4-2 and Figure 4-3 present the exploration and exploitation concessions held.
Coffey is not qualified to provide a legal opinion on the good standing of the properties and has
relied upon a letter provide by the Law Firm Domnguez, Ossa, Long & Macaya Abogados
(DOLM Abogados) who act as CMVHs lawyers in Chile. This letter dated January 10, 2014
states that:
We hereby inform you that currently the mining property of Compaia Minera
Vizcachitas Holding is composed of 119 concessions, 37 of which are exploitation
concessions and 81 exploration concessions. In addition, Sociedad Legal Minera San
Jos is the owner of one exploitation concession.
All of these concessions were legally constituted as they were granted by the
court of Putaendo and duly registered in the Mining Registry of such city. Additionally,
as of this date these concessions do not have any outstanding taxes or permits that
need to be paid for.

25
Table 4-1: Exploitation Claims as of January 10, 2014

N Mining Claim Name Owner Rol Nacional Hectares Validity
1 Huemul 1-40 CIA. MRA Vizcachitas Holding 05604-0336-4 200 Indefinite
2 Isidro 8 1 al 200 CIA. MRA Vizcachitas Holding 200 In Process
3 Leon II 1/30 CIA. MRA Vizcachitas Holding 05604-0289-9 20 Indefinite
4 Leon III 1/30 CIA. MRA Vizcachitas Holding 05604-0290-2 20 Indefinite
5 Leon IV 1/30 CIA. MRA Vizcachitas Holding 05604-0291-0 20 Indefinite
6 Leon V 1/30 CIA. MRA Vizcachitas Holding 05604-0292-9 10 Indefinite
7 Loma Catorce 1/60 CIA. MRA Vizcachitas Holding 05604-0365-8 300 Indefinite
8 Loma Cinco 1/20 CIA. MRA Vizcachitas Holding 05604-0356-9 100 Indefinite
9 Loma Cuatro 1/56 CIA. MRA Vizcachitas Holding 05604-0355-0 280 Indefinite
10 Loma Dieciocho 1/60 CIA. MRA Vizcachitas Holding 05604-0369-0 300 Indefinite
11 Loma Dieciseis 1/18 CIA. MRA Vizcachitas Holding 05604-0367-4 90 Indefinite
12 Loma Diecisiete 1/56 CIA. MRA Vizcachitas Holding 05604-0368-2 280 Indefinite
13 Loma Diez 1/60 CIA. MRA Vizcachitas Holding 05604-0361-5 300 Indefinite
14 Loma Doce 1/40 CIA. MRA Vizcachitas Holding 05604-0363-1 200 Indefinite
15 Loma Dos 1 al 60 CIA. MRA Vizcachitas Holding 05604-0337-2 250 Indefinite
16 Loma Nueve 1/60 CIA. MRA Vizcachitas Holding 05604-0360-7 300 Indefinite
17 Loma Ocho 1/60 CIA. MRA Vizcachitas Holding 05604-0359-3 300 Indefinite
18 Loma Once 1/60 CIA. MRA Vizcachitas Holding 05604-0362-3 300 Indefinite
19 Loma Quince 1/60 CIA. MRA Vizcachitas Holding 05604-0366-6 300 Indefinite
20 Loma Seis 1/60 CIA. MRA Vizcachitas Holding 05604-0357-7 300 Indefinite
21 Loma Siete 1/60 CIA. MRA Vizcachitas Holding 05604-0358-5 300 Indefinite
22 Loma Trece 1/40 CIA. MRA Vizcachitas Holding 05604-0364-K 200 Indefinite
23 Loma Tres 1 al 18 CIA. MRA Vizcachitas Holding 05604-0354-2 90 Indefinite
24 Loma Uno 1 al 31 CIA. MRA Vizcachitas Holding 05604-0352-6 155 Indefinite
25 Loma Uno 46 al 52 CIA. MRA Vizcachitas Holding 05604-0353-4 35 Indefinite
26 Roma 24 1 al 100 CIA. MRA Vizcachitas Holding 05604-0580-1 100 Indefinite
27 Roma 25 1 al 300 CIA. MRA Vizcachitas Holding 05604-0532-4 300 Indefinite
28 Romina 8 1 al 300 CIA. MRA Vizcachitas Holding 300 In Process
29 Romina 9 1 al 300 CIA. MRA Vizcachitas Holding 300 In Process
30 San Cayetano 1 al 20 CIA. MRA Vizcachitas Holding 05604-0215-5 100 Indefinite
31 San Jose 1/3000 SLM SAN JOSE 05504-0138-K 70 Indefinite
32 Santa Maria 1 al 60 CIA. MRA Vizcachitas Holding 05604-0214-7 236 Indefinite
33 Santa Teresa 1 al 60 CIA. MRA Vizcachitas Holding 05604-0216-3 271 Indefinite
34 Tigre Cinco 1/60 CIA. MRA Vizcachitas Holding 05604-0287-2 104 Indefinite
35 Tigre Cuatro 1/20 (19-20) CIA. MRA Vizcachitas Holding 05604-0286-4 10 Indefinite
36 Tigre Dos 1/20 CIA. MRA Vizcachitas Holding 05604-0285-6 10 Indefinite
37 Tigre Tres 1-30 CIA. MRA Vizcachitas Holding 05604-0301-1 300 Indefinite
38 Tigre Uno 1/30 CIA. MRA Vizcachitas Holding 05604-0284-8 20 Indefinite

26
Table 4-2: Exploration Claims as of January 10, 2014

N
Exploration
Claim Name
Owner Rol Nacional Hectares Validity
1 Azul 1 CIA. MRA Vizcachitas Holding 05604-1521-4 200 2015-10-21
4 Azul 4 CIA. MRA Vizcachitas Holding 05604-1515-K 300 2015-10-21
21 LLano 1 CIA. MRA Vizcachitas Holding 05604-1247-9 200 23-Apr-14
22 Llano 2 CIA. MRA Vizcachitas Holding 05604-1261-4 200 23-Apr-14
28 Llano 8 CIA. MRA Vizcachitas Holding 05604-1255-k 300 23-Apr-14
34 Manzano 1 CIA. MRA Vizcachitas Holding 05604-1152-9 300 12-Jan-14

27
N
Exploration
Claim Name
Owner Rol Nacional Hectares Validity
39 Manzano 6 CIA. MRA Vizcachitas Holding 05604-1157-K 300 12-Jan-14
42 Manzano 9 CIA. MRA Vizcachitas Holding 05604-1160-K 300 12-Jan-14
56 Puma 1 CIA. MRA Vizcachitas Holding 05604-1321-1 300 02-Aug-14
57 Puma 2 CIA. MRA Vizcachitas Holding 05604-1322-k 300 02-Aug-14
60 Rio 5 CIA. MRA Vizcachitas Holding 05604-1317-3 300 02-Aug-14
62 Rio 7 CIA. MRA Vizcachitas Holding 05604-1319-k 300 02-Aug-14
64 Sauce 1 CIA. MRA Vizcachitas Holding 05604-1488-9 300 2015-10-01
72 Sauce 9 CIA. MRA Vizcachitas Holding 05604-1496-K 300 2015-10-01
77 Sauce 14 CIA. MRA Vizcachitas Holding 05604-1501-K 300 2015-10-01
80 Sauce 17 CIA. MRA Vizcachitas Holding 05604-1527-3 300 16-Dec-15
81 Sauce 18 CIA. MRA Vizcachitas Holding 05604-1526-5 300 16-Dec-15

28

Figure 4-2: Mining Claims as of January 10, 2014

29

Figure 4-3: Exploration Claims as of January 10, 2014
4.2 Title, Surface Rights and Legal Access
CMVH has signed a legal agreement with the land owners giving it access to the Vizcachitas
deposit. This enables the company to carry out exploration and drilling activities. This is an
annual agreement with provision for automatic annual renewals.
In accordance with the Chilean Mining Code, any titleholder of a mining concession, whether for
exploration or exploitation, has the right to establish an easement over the surface land, as
required for the appropriate exploration or exploitation of its concession. In the event that the
surface property owner does not agree to grant the easement voluntarily, the titleholder of the

30
mining concession may request said easement before the Courts of Justice who shall grant it
upon determination of the compensation for losses as deemed fit.
4.3 Net Smelter Return
There is a Net Smelter Return (NSR) applicable to the concession areas held before December
2010. The NSR royalties applicable to the project are as follows:
The San Jos 1:3000 concession has a NSR of 0.51 % for production from an
underground operation and 1.02 % from an open pit operation.
The remaining concessions that were held before December 2010 have NSR of 1 % for
production from an underground operation and 2 % from an open pit operation.
Concessions that were held before December 2010 are all of the mining claims shown in Figure
4-2.
Coffey is not qualified to provide a legal opinion on NSR related to the mining properties and has
relied upon a letter provided by the Los Andes Copper Corporate Secretary confirming their
status and value.
4.4 Environmental Liabilities
Existing environmental impact are believed to be restricted to exploration-level activities, and
comprise of disturbances at the drill pads, on access roads and around the exploration camp.
No formal environmental studies to identify potential environmental impact have been
completed.
4.5 Operational Permits
CMVH may carry out geological exploration including mapping, surface sampling and
geophysics within its claims area.
CMVH has a confirmation letter from the Chilean Environmental Assessment Service (Servicio
de Evaluacin Ambiental (SEA) in Spanish) indicating that it may drill up to 20 diamond drill
holes within the San Jose 1:3000 claim. Figure 4-2 indicates the location of the San Jose claim.
A special permit will be needed to carry out intensive grid drilling. This drilling may be required to
convert the Inferred Resources to Indicated and Measured Resources for the feasibility studies.
An application must be made to SEA as part of the Environmental Impact Evaluation System
(Sistema de Evaluacin de Impacto Ambiental (SEIA), in Spanish). This process may take
between three to nine months to complete.

31
5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND
PHYSIOGRAPHY
5.1 Country Setting
Chile is one of the most developed Latin American countries with a stable democratic political
system since 1990.
One third of the 17 million Chilean population lives in Santiago.
Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF) described
Chile after her visit in December 2012 as:
Chile is one the most stable and prosperous nations in South America. It has enjoyed
robust growth over the last decade. Chiles strong economic policy framework, including
a fiscal rule, inflation targeting, and exchange rate flexibility has underpinned the
economys resilience in the face of the global financial crisis and the devastating
earthquake in February 2010. Growth momentum is expected to remain strong. Risks
relate mainly to the uncertain global environment. Chile remains exposed to shifts in
commodity prices and deterioration in global financial market sentiment, although its
ample policy buffers would provide protection. On the upside, continued strong
domestic demand can put upward pressure on inflation and lead to further widening of
the current account deficit. (Lagarde 2012)
Approximately 14.4 % (The World Bank, 2012) of the population lives in poverty. Successive
governments have worked to continually reduce this figure and Chile now has the lowest poverty
rates in South America. Poverty is decreasing progressively and a middle class has emerged.
National Gross Domestic Product (GDP) is USD 268.3 billion (The World Bank, 2012)
2
.
Chile has very good universities and well trained engineers and administrators. The mining
industry benefits from a highly skilled workforce.
Chile has the largest copper reserves and is the largest copper producer in the world. The
country has laws favourable to mining, although environmental laws have become more
stringent in recent years.
Most mining services, from engineering to procurement of equipment, can be supplied in the
country.

2
http://data.worldbank.org/country/chile

32
5.2 Access
The Project is situated approximately 150 km northeast of Santiago de Chile and 46 km
northeast of the town of Putaendo, in the Province of San Felipe, Region V. Of the total distance
between the Property and Santiago, approximately 120 km are paved and 30 km are gravel and
unimproved dirt roads. Total driving time from Santiago is approximately three hours.
Access to the Vizcachitas property by four-wheel drive vehicle is possible during much of the
year but it is subject to some interruptions following storms or spring runoff when high water
conditions in the Rocin River prohibit stream crossings.
5.3 Climate
The Property is located in the western foothills of the Andes at an average altitude of 2,100
masl.
The climate at site is warm-temperate with six dry months in summer and winter rainfalls. The
average precipitation is approximately 300 millimeters per year. Precipitation falls as both rain
and snow between April and October. The summer temperatures vary from a few degrees above
zero at night to 35 C during the day. In winter the temperatures are 10 to 15 C lower. The
relatively low elevation means that it is possible to explore all year round and to drill through the
winter months.
5.4 Physiography and Vegetation
The Rocin River bisects the Property and deeply incises the valley across the steep mountain
slopes.
Elevations within the Property range from below 1,800 m to over 3,400 m with an average
elevation of approximately 2,100 m. The exploration camp at Vizcachitas is located at
approximately 1,940 m.
Vegetation, which consists of bushes and trees a few tens to hundreds of centimetres in height,
is located in the valley bottoms close to the river where water availability make plant life
possible.
Figure 5-1 illustrates the topography in the Project area.
Access and topography do present certain challenges to the Project and they require to be
addressed in the engineering phase. Other operations such as Andina, Los Bronces and Los
Pelambres have all been developed in similar terrain.

33

Figure 5-1: View over the Project Area. General Site View looking East (source: Los Andes Copper, June, 2013)
5.5 Local Resources
There are no significant population centres in the immediate area of the Project. The closest
village is Resguardo de Los Patos approximately 25 km away and the town of Putaendo 46 km
away. There is a significant skilled and semi-skilled workforce population in the area with Los
Andes and San Felipe within 100 kilometres of the project site and Santiago 150 km away. Chile
generally is an advanced country in terms of mining technology and infrastructure and supplies
high quality mining professionals to other countries.
The Rocin River and the Chalaco Creek join together to form the Putaendo River. The Rocin
River is in the process of being dammed to provide a constant freshwater source for agriculture
in the Putaendo valley. The Rocin River does not have any water consumers between the
project site and the dam that is being constructed near to Resguardo de Los Patos.
5.6 Infrastructure
Vizcachitas is a green field site, and thus existing site infrastructure is limited to an exploration
camp and roads. However the Project benefits from substantial regional infrastructure including

34
a nearby railhead; National grid power and extensive road network. The Projects reasonably
low altitude will also be beneficial when site specific infrastructure is developed.
The Property is large enough to host an open pit or underground mining operation, although
optimum locations for infrastructure may overlie third party mining claims. Concession owners
have the right to establish an occupation easement over the surface as required for the
appropriate exploration or exploitation of the concession. The majority of this area is owned by a
private Chilean company. The process for obtaining permits for easements well established by
Law in Chile.
The nearby towns of Los Andes and San Felipe are used as a base for many personnel and
subcontractors who work at the Codelco Andina mine. Anglo Americans Chagres smelter and
Codelcos Ventanas smelter are within 140 km of the Project. The port of Ventanas is 140 km
away and currently handles copper concentrate from other mining operations in the district.
There is an operating railway line in San Felipe with connections to the two smelters and the port
of Ventanas. The PEA envisages the shipment of copper concentrate by rail to the Ventanas
port.
There are several large electrical substations near to the project site. The Nogales substation is
part of the 220 kV national grid distribution system and the Las Vegas substation part of the 110
kV system.
The Rocin River flows through the project site and is a tributary of the Putaendo and the
Aconcagua Rivers. Los Andes Copper currently owns consumptive water rights for a portion of
the projected water requirements and with an extraction point located along the Aconcagua
River approximately 80 km from the project site. For the Project to proceed, Los Andes Copper
will need to secure additional consumptive water rights and make that water available at the
Project.
The Project is a green field site and local infrastructure will need to be built. This will include the
process water supply, Rocin River diversion tunnel, power supply from the national grid
substation to the project site, access road upgrade, concentrate storage and concentrate loading
facilities at the railhead.
Power for the Project is considered as being supplied from the Hydro Electric Plant and the
National Grid (Sistema Interconectado Central (SIC) in Spanish) and will be taken from either
the Nogales or Las Vegas substations, the former 105 km and the latter 74 km away.

35
6 HISTORY
6.1 Description
The outcropping hydrothermal and tourmaline breccias in the centre of the Property have green
copper oxide staining. A lack of high grade veins probably explains why there is no evidence of
early mining activity on the Property.
The central claim, San Jos 1/3000 (San Jos) was claimed in the 1970s. There is no
documentary evidence showing what work was carried out on the property at that time.
Placer Dome Sudamerica Limited (Placer) reviewed the Project in 1992 and signed an option
agreement in 1993. Placer completed mapping and sampling programs followed by six diamond
drill holes totalling 1,953 m.
In 1995, General Mineral Corporation (GMC) acquired 51 % of the San Jos claim and entered
into an option agreement for the Santa Teresa, Santa Maria, San Cayetano, and Tigre 1 AL 3
claims. They independently claimed the Len 1 AL 16 concessions. The total area of this land
package was 3,788 ha (Osterman, 1997).
In 1997 GMC entered into a joint venture agreement with Westmin Resource Limited (Westmin),
which was subsequently terminated by Boliden in 1998 (Boliden acquired Westmin during the
period of the joint venture).
Beginning in 1995, GMC conducted detailed mapping, sampling, geophysics and drilling
programs. Although there is no comprehensive written summary of this work, 61 diamond drill
holes were completed through 1998 for a total of 15,841 m. Based on this information, GMC
calculated a non NI 43-101 compliant Measured and Indicated Mineral Resource of 645 million
tonnes at an average copper grade of 0.45 % and an average molybdenum grade of 0.014 % at
a 0.3 % Cu cut-off.
In 1998, GMC commissioned Kilborn International (Kilborn) to complete an initial feasibility study
on the Vizcachitas property. Kilborn commissioned an audit of the historic GMC resource and
concluded that at a copper price of $1.00 per pound, the net present value of the project was
$201 million at a discount rate of 8 %, with 20 % Internal Rate of Return after tax (Kilborn, 1998).
Shortly after the initial feasibility study was completed, GMC put the project on a care-and-
maintenance basis, dropping most of the claims with the exception of the central core of
concessions.

36
Lumina Copper Corp. (LUM) purchased GMCs subsidiary Vizcachitas Limited in late 2003. This
included the shares of CMVH, which in turn owned 51 % of San Jos 1/3000 and other
surrounding claims constituting the Vizcachitas property.
In May 2005, under a Plan of Arrangement, Vizcachitas Limited was transferred to Global
Copper Corporation (Global), one of four successor companies of Lumina Copper Corp. During
the period, CMVH completed a preliminary rehabilitation of the camp and core storage,
maintained watchmen at the site, managed the mineral rights, and conducted general project
orientation for Global management and interested parties.
In November 2006, GHG Resources Limited (GHG) entered into an agreement with Global to
acquire all Globals interest in the Vizcachitas property. The acquisition was completed in
February 2007. GHG paid USD 10,400,000 and issued to Global 6,280,000 shares and
3,900,000 share purchase warrants in the capital of GHG. After the purchase, GHG decided to
focus exclusively on Vizcachitas. GHG was renamed Los Andes Copper Ltd. (Los Andes
Copper). No additional field exploration was conducted between 1998 and the date of
acquisition by GHG including the period of Globals ownership of the Property.
During the period 2007 through 2008 Los Andes Copper drilled a total of 79 drill holes for a total
of 22,615 metres. The drill hole numbers run from LAV-064 to LAV-142. Towards the end of this
period a NI 43-101 Technical Report was prepared by AMEC and SIM Geological Inc. The last
drill hole included in this Report was LAV-124 and the Effective Date for the Technical Report
was June 9, 2008 (AMEC, 2008).
In December 2010, the remaining 49 % of the San Jos claim was brought under the control of
Los Andes Copper. As of this time, all the mining claims are held by wholly owned subsidiaries
of Los Andes Copper.
During the period 2011 to 2012, CMVH systematically compiled and documented the historical
data for the Project. The assay certificates for all the samples have been located and the pulp
samples for the GMC and Los Andes Copper assaying have been documented and are stored
at the project site.
6.2 Historic Resource Estimates
Placer and GMC estimated historic mineral resources at Vizcachitas as part of exploration work
undertaken on the Property. These estimates are not NI 43-101 compliant and are included for
historic purposes only and should not be relied upon.

37
6.2.1 Placer Dome
This estimate is based on five of the six diamond drill holes. Results are presented in Acosta
(1992) and Acosta and Zapata (1993). Placer concluded that Vizcachitas contained a non NI 43-
101 compliant resource of 300 million tonnes at an average copper grade of 0.42 %. (Acosta
and Zapata, 1993).
6.2.2 General Minerals
In 1997, using a cut-off grade of 0.3 % Cu, GMC estimated a non NI 43-101 compliant
Measured plus Indicated Resource of 645 Mt with an average grade of 0.45 % Cu and 0.014 %
Mo and an Inferred Resource of 496 Mt with an average grade of 0.38 % Cu and 0.014 % Mo.
The estimate was based on 14,370 individual assays from 68 drill holes (Kilborn, 1998).
There is no report on this resource but an audit of the resource was completed in early 1998 by
Mine Reserve Associates Incorporated (MRA) as part of an initial pre-feasibility study on the
Vizcachitas Project carried out by Kilborn International Incorporated. According to MRA, all
resource estimation parameters met or exceeded normal industry standards and met the
reporting requirements for Canadian securities commissions at that time (Kilborn, 1998).
In 1998 GMC commissioned Kilborn to complete a non NI 43-101 compliant Initial Feasibility
Study on the Vizcachitas Property (Kilborn, 1998). It should be noted that the Kilborn study is
no longer valid. The project, as envisioned by Kilborn, included the following:
An open pit mine, and a conventional crushing, grinding, and flotation mill for the recovery
of copper and molybdenum concentrates from primary sulphide ores
A partially lined dump leach facility for storage and treatment of secondary enrichment and
oxide ore
A solvent extraction and electrowinning plant for the recovery of copper cathode from
dump leach material
A tailings dam for the storage of mill tailings and recovery of process water
Various mine dumps
A dam and a seven kilometre tunnel designed to divert water from the Rocin River around
the project area
Administration facilities including offices, change house, cafeteria, truck shop, warehouse
and laboratory

38
Electrical supply line from San Felipe, plant site substation, power distribution and access
road.
6.2.3 GHG Resources Ltd.
In 2007 GHG commissioned A.C.A. Howe International Limited (ACA) to prepare a NI 43-101
compliant Mineral Resource estimate. The resource estimate was based on 68 diamond drill
holes for a total of 18,300 metres. Using a cut-off grade of 0.3 % Cu, ACA reported 232 Mt with
an average grade of 0.46 % Cu, 0.014 % Mo and 8 ppb Au as Indicated Resource, and 619 Mt
with 0.38 % Cu, 0.013 % Mo and 7 ppb Au as Inferred Resource, (Priesmeyer and Sim, 2007).
6.2.4 Los Andes Copper Ltd.
In 2008, before the drilling programme had been completed, Los Andes Copper commissioned
AMEC and SIM Geological Inc. to prepare a NI 43-101 compliant Mineral Resource estimate.
The estimate was prepared from 130 drill holes with a cumulative length of 35,255 metres.
Los Andes Copper reported an Indicated Mineral Resource of 515 Mt with an average grade of
0.39 % Cu and 0.011 % Mo and an Inferred Mineral Resource of 572 Mt with an average grade
of 0.34 % Cu and 0.012 % Mo in the sulphide zone using a cut-off grade of 0.30 % Cu Eq.
Los Andes Copper also reported an oxide zone with an Indicated Mineral Resource of 55 Mt
with an average grade of 0.38 % Cu and 0.01 % Mo, and Inferred Mineral Resource of 33 Mt
with an average grade of 0.28 % Cu and 0.007 % Mo, using a cut-off grade of 0.20 % Cu. The
sulphide and oxide resource estimates are summarized in Tables 6-1 and 6-2.
Due to changes in metal prices during this period along with the relatively high molybdenum
content in the deposit, Los Andes Copper reported the mineral resources in the sulphide zone
based on copper equivalent grades. Copper equivalent grades in the 2008 AMEC report were
calculated using the following formula:
Cu Eq (%) = Cu % + (Mo %*6.67)
The formula assumed a metal price of USD 1.50/lb. Cu and USD 10.00/lb. Mo and the formula
does not account for metallurgical recoveries.

39
Table 6-1: AMEC 2008 Sulphide Mineral Resource Estimate

(1) Cu Eq=Cu% + (Mo% * 6.67). Metal prices: $1.50/lb Cu, $10.00/lb Mo. Assumed 100% mining and metallurgical recoveries

Table 6-2: AMEC 2008 Oxide Mineral Resource Estimate

Cut-off
CuEq % (1)
Tonnage
(Mt)
Cu Grade
(%)
Mo Grade
(%)
CuEq Grade
(%)
Cu (Mlb) Mo (Mlb)
Indicated
0.20 597 0.36 0.010 0.43 4,738 132
0.25 563 0.37 0.011 0.44 4,592 137
0.30 515 0.39 0.011 0.46 4,428 125
0.35 442 0.41 0.012 0.48 3,995 117
0.40 351 0.43 0.012 0.51 3,327 93
0.45 252 0.47 0.013 0.55 2,611 72
0.50 160 0.51 0.013 0.60 1,799 46
Inferred
0.20 798 0.30 0.010 0.36 5,278 176
0.25 685 0.32 0.011 0.39 4,833 166
0.30 572 0.34 0.012 0.41 4,288 151
0.35 420 0.36 0.013 0.44 3,333 120
0.40 280 0.39 0.013 0.48 2,407 80
0.45 176 0.43 0.014 0.52 1,668 54
0.50 92 0.46 0.016 0.57 933 32
Cut-off
Cu %
Tonnage
(Mt)
Cu Grade
(%)
Mo Grade
(%)
Cu (Mlb) Mo (Mlb)
Indicated
0.10 69 0.33 0.009 502 14
0.15 63 0.35 0.010 486 14
0.20 55 0.38 0.010 461 12
0.25 47 0.4 0.010 414 10
0.30 38 0.44 0.010 369 8
0.35 29 0.47 0.010 300 6
0.40 21 0.51 0.010 236 5
Inferred
0.10 67 0.21 0.005 310 7
0.15 51 0.24 0.005 270 6
0.20 33 0.28 0.007 204 5
0.25 22 0.31 0.007 150 3
0.30 8 0.37 0.006 65 1
0.35 5 0.42 0.007 46 1
0.40 3 0.46 0.008 30 1

40
6.3 Historic Preliminary Economic Assessment
Los Andes Copper published a Preliminary Economic Assessment and an updated NI 43-101
resource estimate on December 12, 2013 (Coffey et al. 2013). This report was published during
the process of consolidation of the non-consumptive water rights over a section of the Rocin
River, Putaendo, Fifth Region, Chile, together with the engineering and other studies and reports
for the development of a run-of-river hydroelectric project generation facility. This PEA detailed
the economic impact of both the inclusion and exclusion of the Hydro Electric Plant to Los Andes
Copper. The consolidation was closed on January 23, 2014.

41
7 GEOLOGY
7.1 Regional Geology
The dominant geological feature of this region is the north-south trending Neogene (23 - 2.5
million years ago (Ma)) metallogenic belt that extends along the slopes of the Andean Cordillera
in Chile and Argentina (Figure 7-1).

42
Figure 7-1: Regional Geology
In central Chile, this metallogenic belt includes world class Cu-Mo porphyries, such as: Los
Pelambres-El Pachn located 75km north of the Vizcachitas deposit, Ro Blanco-Los Bronces
located 80 km to south of Vizcachitas and El Teniente located 180 km to the south. Further
north, the Neogene metallogenic belt includes world-class Miocene (23.03 to 5.332 Ma)
epithermal precious metal deposits and less important Au, Cu, and Cu-Au porphyries in the El
Indio-Maricunga belt (Davidson and Mpodozis, 1991; Sillitoe, 1991).
In central Chile, the Neogene metallogenic belt coincides with the position of Miocene volcanic
centers and associated flat-lying volcanic rocks, sills, and dikes. The Miocene volcanic
sequence, with an average thickness of 2,500 m, comprises andesite, basalt (lavas and sills),
dacite, and intercalations of rhyolitic tuff, which constitute a north-south belt approximately 20 km
wide (Farellones Formation; Thiele, 1980; Rivano et al., 1990). Eruption of these volcanic rocks
occurred at a number of volcanic centers, possibly localized by intersections of regional
structures. These volcanic rocks overlie folded Oligocene (34 23 Ma) to early Miocene
andesitic volcanic and continental sedimentary rocks (Abanico and Coya-Machal Formations in
a non-conforming manner; Thiele, 1980; Charrier et al., 2002).
The Neogene porphyry Cu-Mo deposits occur within hydrothermal alteration zones related to
multiphase porphyritic stocks with compositions ranging from quartz diorite to granodiorite.
These intrusions and their country rocks host dense networks of sulphide-bearing veins and
associated hydrothermal breccia complexes. The country rocks are: late Miocene basaltic and
andesitic volcanic rocks, diabase sills, and gabbro at El Teniente; Miocene andesite and a
middle Miocene granodioritic batholith at Ro Blanco-Los Bronces (San Francisco batholith;
Serrano et al., 1996); and folded Lower Cretaceous (145 - 100 Ma) volcanic and sedimentary
rocks at Los Pelambres (Atkinson et al., 1996).
7.2 Local and Property Geology
At Vizcachitas, there are at least six intrusive rock types, six porphyritic rock types and eight
distinct types of breccia, hosted by the Oligocene (23-44 Ma) andesite of the Abanico Formation
(Jara et al. 2013). Dates obtained by GMC on biotite from four intrusive rocks yielded ages
between 10.4 and 12 0.3 Ma (Osterman, 1997).The deposit covers an area of approximately
2.6 km
2
. A simplified geological map is shown in Figure 7-2.

43

Figure 7-2: Local Geology (source: Los Andes Copper, June, 2013)
The main volcanic unit in the area is a porphyritic andesite unit of the Oligocene andesite of the
Abanico Formation. Flat-lying volcanic rocks of the Miocene-age Farellones Formation
irregularly overlie the andesite of Abanico Formation. At Vizcachitas, the Farellones Formation
forms the mountain peaks in the district and is visible on surrounding hilltops above the older
volcanic and intrusive rocks that are altered and mineralized.

44
7.3 Mineralization
The hydrothermal alteration system at Vizcachitas appears to affect an area of approximately
3.5 km
2
. The Vizcachitas deposit exhibits a typical core of quartz-sericitic and potassic alteration
surrounded by propylitic alteration outside of the quartz-sericite zone.
Hypogene mineralization consists of veinlet-controlled and disseminated pyrite, chalcopyrite and
molybdenite. Primary mineralization occurs in the tonalite, diorite, granodiorite and andesite
zones. Bornite and tetrahedrite/tennantite are also present in minor quantities.
Supergene mineralization occurs in the form of sooty or massive chalcocite and covellite
completely replacing or coating pyrite and chalcopyrite. Ferrimolybdite, a secondary
molybdenum mineral, malachite, azurite and cuprite are also present in minor quantities
(Brockway, 1998).
The Placer, GMC and 2007/2008 Los Andes Copper logging and cross section referred to a
sequence from surface of leached, oxide and supergene mineralised zones and finally a primary
or hypogene mineralization zone. This is the normal sequence in copper porphyrys especially in
northern Chile. Reviewing the mineralogical reports on the Property it is clear that in the areas
identified as the leached and oxide zone there may be up to 60 % of the copper mineral present
as chalcopyrite (Brockway, 1998). Evidently the leaching process is not complete. For this
reason the zones that have previously been classified as Leached or Oxide have been re-
classified as the Mixed mineralization zone.

45
8 DEPOSIT TYPES
The Vizcachitas deposit has similar features to other Andean-style porphyry copper-
molybdenum deposits. This type of deposit contains large masses of hydrothermally altered
rock, sulphide-bearing veinlets and disseminations, quartz veins and stockworks which can
cover various square kilometres. These altered zones are commonly coincident with shallow
intrusives and/or dike swarms and hydrothermal or intrusion breccias.
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.
Surface oxidation commonly modifies the distribution of mineralization in weathered
environments. Acidic meteoric waters, generated by the oxidation of pyrite, leach copper from
soluble copper minerals and re-deposit it as secondary minerals such as chalcocite and covellite
immediately below the water table in a blanket-shaped supergene enrichment zone. The
process produces a copper-poor leached cap lying above a relatively thin higher-grade zone of
supergene enrichment. The latter overlies a thicker zone of lower-grade primary (hypogene)
mineralization at depth.
Porphyry systems may also 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 re-deposition of hypogene copper, or a combination of
the two. Such enrichment processes result in elevated hypogene grades.

46
9 EXPLORATION
The outcropping hydrothermal and tourmaline breccias in the centre of the Property have green
copper oxide staining. There is no evidence of early mining activity or exploration on the
Property. Since the early 1990s there have been three major exploration and drilling campaigns
on the Property carried out by Placer, GMC and Los Andes Copper.
9.1 Placer Dome Sudamerica S.A.
In 1992, Placer carried out mapping and sampling programs. These programs focused on
improving the geological alteration and mineralization understanding of the deposit with a view
to design a follow-up drill program. The mapping defined a semi-circular alteration zone
measuring 1.5 km
2
in area (Acosta and Zapata, 1993). Placer recognized the porphyry copper
characteristics of the mineralization and alteration and further recognized that the mineralization
was centered on two complex breccia pipes. After initial sampling Placer collected a further 120
surface rock samples (Acosta, 1992).
The copper anomaly was defined by copper values greater than 150 ppm although values of
300 ppm were locally related to the breccias. The most consistent anomaly occurred in the
stockwork zone in the south-western part of the deposit. Two other anomalies occurred to the
north and south of the breccia body.
Molybdenum was generally coincident with copper. Anomalies were defined by molybdenum
values greater than 50 ppm. Anomalous gold, silver, arsenic, antimony and potassium were also
detected in the same area as the copper and molybdenum anomaly.
Placer recognized the importance of the breccia bodies in localizing mineralization and planned
five drill holes to test the breccias and stockwork mineralization, with three additional holes
contingent on the results of the first five.
In 1993, Placer completed six diamond drill holes totalling 1,953 m. The Placer drilling program
is discussed in Chapter 10 of this report.
9.2 General Minerals Corporation
GMC acquired its interest in the Vizcachitas Property in 1995. GMC conducted the following
exploration works:
geological mapping and surface geochemical sampling
bulldozer trenching

47
surface geochemical sampling
30 line km of induced polarization, resistivity and chargeability geophysical survey
radiometric age dating of intrusive rocks associated with the deposit
a fluid inclusion study
61 diamond drill holes totalling 15,815 m, logging and geochemical analyses of the drill
core
geotechnical drill core logging
preliminary metallurgical classification
bench scale testing, detailed flotation and leach testing
mineralogical classification of ore types
hydrological and environmental data gathering for baseline studies
resource estimates
Initial Feasibility Study.
Original copies of the drill logs, assay batch despatch forms and the assay certificates are stored
in the Los Andes Copper office in Santiago. Analytical reports from Geochron Laboratories with
results of the potassium-argon age determinations are included in the Osterman report.
In 1996, GMC completed 30 line km of Induced Polarization (IP), Resistivity and Spontaneous
Potential (SP) on the Vizcachitas Property. Readings were initially made in the southeast part of
the main exploration area and then extended 3 km to the north. The survey was systematically
expanded to cover 7 km
2
of the Property.
Due to the rugged nature of the terrain, survey lines were initially located along drill roads and
then up slopes that could be easily and safely negotiated by geophysical crews. Most of the area
was surveyed with 50 m between stations and with lines 300 m to 500 m apart.
According to Osterman (1997) the IP anomalies accurately reflect the presence of veinlet-
controlled and pervasive pyrite-sericite alteration. Because the anomalies reflect pyritic
alteration, which typically occurs outboard of copper mineralization, the anomalies may be used
as an exploration tool to delimit the potentially mineralized area at Vizcachitas.

48
In 1997 Kilborn prepared a report titled Vizcachitas Copper-Molybdenum Project, Initial
Feasibility Study, August 1998 for GMC. The two-volume report had a total of 717 pages. This
study detailed all the previous work on the project describing the geology, surface sampling,
drilling, resource estimate and metallurgical studies. The conclusions of the report were that
using $ 1.0 / lb. copper the project had an IRR before tax of 22 % and an NPV at 8 % discount
rate of $ 201,000,000 (Kilborn, 1998).
Having completed the report no further exploration work was carried out on the Property.
9.3 Global Copper Corporation
Global did not conduct any exploration work on the Property.
9.4 Los Andes Copper Ltd.
Los Andes Copper re-evaluated the geological model prepared by GMC, updating the cross-
sections and the surface mapping. District mapping was updated and expanded to cover the
claim area.
Between July 2007 and October 2008 Los Andes Copper completed a total of 79 diamond drill
holes, totalling 22,615.60 m. Geotechnical and geological logging was completed on all drill
holes. The drill holes were assayed systematically for copper and molybdenum. Composite
samples were sent for mineralogical and metallurgical analysis for each of the main
mineralization domains. The drilling is discussed in more detail in Chapter 10.
A NI 43-101 Technical Report was commissioned with AMEC and SIM Geological Inc. before
the drilling had been completed. This report was published with an Effective Date of June 9,
2008 and included the results from 62 diamond drill holes, totalling 17,467 m. A domain model
for mineral zone and lithology was prepared for this study.
Having completed the drilling the geological cross sections were updated. The pulp samples and
the drill core was documented and stored at site.
Los Andes Copper has not performed any geophysical surveys on the Property.
During 2012 Los Andes Copper reviewed and documented all the historical data available for
the Property.

49
10 DRILLING
A total of 146 diamond drill holes have been drilled on the Property since 1993, totalling 40,383
metres. The total metres drilled by each company is summarised in Table 10-1.The drill hole
locations are shown in Figure 10-1. The detailed location, azimuth and dip of all drill holes are
shown in Appendix B.
Table 10-1: Drilling Summary at Vizcachitas

Company Period Drill Hole Numbers No. of Drill Holes Total Meterage (m)
Placer Dome 1993 VP-01 to VP-06 6 1,952.95
General Minerals 1995-1998 V-01 to V-63 61 15,814.90
Los Andes Copper 2007-2008 LAV-064 to LAV-142 79 22,615.60
Total 146 40,383.45

50

Figure 10-1: Drill Hole Location (source: Los Andes Copper, June, 2013)
10.1 Placer Dome Sudamerica Limited
In 1993, Placer completed six diamond drill holes totalling 1,953 m. The drill holes are numbered
VP-1 to VP-6.The objective of the program was to evaluate the Property for its porphyry copper
potential.

51

10.2 General Minerals Corporation
Between 1995 and 1998, GMC completed 61 diamond drill holes for a total of 15,815 m. The
GMC drill program was intended to further evaluate the mineralized area identified by Placer and
to develop a mineral resource.
The drill holes were numbered from V-1 to V-63 but drill hole V-44 and V-51 were aborted and
not sampled or logged. Drill hole V-14A was not assayed because it reached only 20.43 metres
finishing within the overburden. Drill hole V19-A was included in the AMEC 2008 Technical
Report but it was drilled to only 21.96 m and was not assayed. Drill hole V-19 was drilled to
224.05 m. These aborted or short drill holes explain the differences between the number of drill
holes and total metres reported in the AMEC 2008 report and the number of completed drill
holes that have been quoted in this Technical Report. The full list of drill holes and their total
depth is included in Appendix B.
Geotechnical and geological logs are available for both the Placer and the GMC drilling in the
original handwritten format. The header of these logs includes general information such as
location, hole orientation and depth and drilling contractor. The geological logging includes
mineralization type, lithology, alteration, type of mineralization, fracture intensity and a visual
estimate of pyrite and chalcopyrite content. GMC prepared final logs in AutoCAD format for the
geological logs and these include the sample numbers and the assay results for copper,
molybdenum and gold values in numeric format and as histograms.
Los Andes Copper has digitised the paper geotechnical logs so that the recovery, Rock Quality
Designation (RQD) and geotechnical logging can be analysed mathematically and the
information plotted up on sections.
10.3 Los Andes Copper Ltd.
10.3.1 Drilling
Los Andes Copper completed at total of 79 diamond drill holes, totalling 22,616 m, between July
2007 and October 2008. The Los Andes Copper drilling was carried out to refine the geological
model, evaluate the continuity of mineralization, evaluate possible deposit extensions and
confirm the mineralization defined by the prior drill campaigns.
No drill holes were drilled within the San Jos 1/3000 claim area. At the time of the drill
campaign Los Andes Copper only owned of 51 % of this claim area.
The 2008 AMEC Technical Report was prepared using the drill holes the Placer, GMC and the
Los Andes Copper drill holes LAV-64 to LAV-124, a total of 62 drill holes and 17,467 m. The drill

52
hole LAV-121 was subsequently extended from a total depth of 85.85 m to a final depth of
250.00 m

Figure 10-2: Core Storage at the Project
10.3.2 Procedures
Advisor Drilling and Leduc Drilling Chile S.A. conducted core drilling using truck-mounted
Longyear LF-90 rigs. Core diameter was usually HQ diameter (63.5 mm), but NQ diameter (47.6
mm) has been used on certain deep holes but only when strictly necessary for technical
reasons. When the initial section of the hole crossed rock fill or loose material, a 5
1
/
2
" tricone bit
was used, and no material was collected. The average drill hole depth was approximately 286
m, although some drill holes have exceeded 500 m depth.
Drill runs were consistently 3 m long. The cores were placed on 1 m long metal boxes, and
identified with the hole and the box numbers. Drill runs were marked with small wooden blocks.
Core recovery was measured by drill run after being removed from the core tube. Core boxes
were collected twice a day and transported by truck to the camp for logging, sampling, and
permanent storage. The core boxes were routinely covered and secured during transportation.
There was permanent supervision by the geological subcontractor, Geologica, at the drill site.
As part of the 2008 Technical Report, AMEC observed the drilling and handling of the core and
stated in the report that the procedures in place met best practices for the mining industry.
Coffey was not able to review the drilling operation but has made a site visit and has been able
to inspect the core boxes for all of the Placer, GMC and Los Andes Copper drilling.
10.3.3 Surveying
During the 2007/2008 drilling program all surveying was carried out using the Universal
Transvers Mercator (UTM) Zone 19H and the Provisional South American Datum 1956
(PSAD56). The June 2008 magnetic declination was 230' E, with a western annual drift of 8'.

53
Vctor Olgun, a local contractor, surveyed the collar locations using a Total Station Geodimeter
500 prior to drilling. The collar locations were re-surveyed after drilling was completed, and the
inclination of the hole was also measured.
Topographic measurements were referenced to three triangulation points installed as part of the
procedures required when registering mining claims. In Spanish these are called Hitos de
Mensura. The triangulation points were previously surveyed with reference to the Chilean
Instituto Geogrfico Militar (IGM) national grid based on PSAD56.
Servapro Limitada (Servapro) produced a high resolution 5 m contour line spaced topographic
map at a scale of 1: 5,000 by air photogrammetric restitution. Los Andes Copper has updated
the topographic data, including new roads and other features as necessary.
The drilling contractor conducted the down-hole surveying using the Flexit method, which
determines the azimuth by magnetic reading and the inclination of the hole. Readings are taken
at 24 m intervals, and measurements within casing rods are discarded. The drilling contractor
delivered digital reports for each surveyed hole. Azimuth measurements were corrected for the
local magnetic declination.
As part of the 2008 Technical Report AMEC stated that the surveying procedures carried out by
Los Andes Copper were adequate.
In 2012, Los Andes Copper contracted the survey company EVG Geomensura to connect the
Project to the World Geodetic System WGS 84 datum (WGS 84). Using double frequency
TOPCON Hiper + GPSs the Vizcachitas Property triangulation point HM LOMA DOS y LORO
DOS was surveyed from the Instituto Geogrfico Militar topographic triangulation point PNQE.
Accurate measurements have enabled the conversion of the historical UTM PSAD56
coordinates to the UTM WGS 84 coordinates.
EVG Geomensura calculated the Molodenski transformation parameters to convert PSAD56
coordinates to WGS 84. The parameters for the Property are:
WGS 84 - PSAD56
DX: -329.515 m
DY: + 346.051 m
DZ: -324.901m
The historical topographic data has been converted using these parameters in the software
ArcGIS.

54
The central triangulation point Vizcachitas has a difference between PSAD56 and WGS 84 of
easting -183.119 and northing of -373.427. All the geographic coordinates used in the PEA have
been converted from PSAD56 to WGS 84 by subtracting 183.0 m from the easting and
subtracting 373.0 m from the northing. Converting the data by whole metres simplifies the data.
Validation of the topographic surveying showed that historical drilling coordinates are accurate to
approximately 1 m.
10.3.4 Geological and Geotechnical Logging
Los Andes Copper geologists conducted detailed geotechnical logging, which included RQD
data and frequency of fractures usually measured at 2 m intervals. In addition, structure and rock
matrix features such as roughness, infilling and wall resistance, filling type, infilling hardness,
matrix resistance and weathering grade were recorded using codes.
Geological logging was conducted after halving the core using a diamond saw. Los Andes
Copper geologists used a Fujitsu tablet PC for logging. The logs were recorded in digital
spreadsheet format and contain data of the intervals with their geological descriptions such as
lithology, types of veinlets, details on the alteration and mineralization (including a visual
appreciation of the pyrite/chalcopyrite ratio and the presence of gypsum or anhydrite) and
mineralization zones using pre-established codes. A reference collection of representative
samples from each drill hole was maintained on site.
10.3.5 Results
A mineral resource has been developed as result of the drilling campaigns carried out by Placer,
GMC and Los Andes in a mineralized area identified initially by Placer. The highlights of the
drilling campaign are presented in Table 10-2 and Table 10-3.

55
Table 10-2: Placer Dome and General Minerals drilling highlights

Hole ID From (m) To (m) Interval (m) Cu (%) Mo (%)
VP1 21.5 75.5 52 0.82 0.07
VP3 57.9 188 130.1 0.49 0.01
VP4 112 188 76 0.63 0.01
V-2 65.2 106.8 41.7 0.83 0.01
V-3 42.8 95.6 52.9 0.93 0.007
V-4 6.2 368.1 361.9 0.66 0.018
V-5 6.2 49.9 43.7 1.06 0.01
V-6 74.3 222.7 148.4 0.72 0.01
V-7 82.7 183.1 100.4 0.53 0.01
V-13 20.4 203.4 183 0.57 0.006
V-15 54.4 212 157.6 0.59 0.007
V-16 96.7 148.5 51.9 0.93 0.009
V-18 48.7 206.5 157.7 0.76 0.019
V-20 11.3 111.9 100.7 0.68 0.007
V-23 99.7 145.5 45.8 0.87 0.014
V-26 10.2 80.4 70.2 0.6 0.002
V-32 50 358.5 308.5 0.46 0.01
V-33 21.2 337.8 316.7 0.47 0.013
V-34 89 173.8 84.8 0.56 0.009
V-47 56.7 173.9 117.2 0.41 0.012
V-58 59.2 202.3 143.1 0.56 0.022
V-61 37.2 115 77.8 0.51 0.009

56
Table 10-3: Los Andes Copper drilling highlights

Hole ID From (m) To (m) Interval (m) Cu (%) Mo (%)
LAV-68 58 196 138 0.54 0.01
LAV-72 34 132 98 0.7 0.013
LAV-75 48 218 170 0.4 0.007
LAV-73 14.6 94 79.5 0.59 0.013
LAV-77 40 350 310 0.41 0.008
LAV-78 27 300 273 0.42 0.009
LAV-81 82 260 178 0.57 0.012
LAV-82 20 250 230 0.41 0.01
LAV-83 164 246 82 0.47 0.012
LAV-84 36 210 174 0.52 0.004
LAV-85 10 150 140 0.64 0.003
LAV-88 41.6 250 208.5 0.57 0.002
LAV-89 34 126 92 0.7 0.023
LAV-90 8.3 412 403.7 0.42 0.005
LAV-91 68 192 124 0.65 0.019
LAV-94 44 142 98 0.5 0.008
LAV-98 110.5 180 69.5 0.54 0.01
LAV-108 42 260 218 0.57 0.009
LAV-109 32 230 198 0.41 0.015
LAV-112 40 172 132 0.56 0.013
LAV-118 74 172 98 0.43 0.015
LAV-120 48 168 120 0.45 0.016
LAV-123 36 270 234 0.49 0.01
LAV-124 238 376 138 0.6 0.016
LAV-125 43 250 207.1 0.41 0.012
LAV-126 63.2 114 50.9 0.55 0.03
LAV-131 56.8 186 129.2 0.71 0.014
LAV-135A 28.7 54 25.3 0.46 0.005
LAV-138 94 146 52 0.44 0.01
LAV-139 246 270 24 0.53 0.017
LAV-140 228 290 62 0.46 0.006

57
11 SAMPLE PREPARATION, ANALYSES AND SECURITY
11.1 Quality Assurance/Quality Control Definitions and Protocols
NI 43-101 and CIM Exploration Best Practice Guidelines (2010 and 2003b and 2005) state that
a program of data verification should accompany an exploration program to confirm the validity
of exploration data. Furthermore, the CIM Estimation of Mineral Resources and Mineral
Reserves Best Practice Guidelines require that a quality assurance and quality control (QA/QC)
program be utilized to ensure that analytical accuracy and precision are adequate to support
resource estimation (CSA, 2011a and 2011 b).
There are some basic concepts related to any QA/QC program, applicable to all elements in this
program:
Precision: the ability to consistently reproduce a measurement in similar conditions;
Accuracy: the closeness of those measurements to the true or accepted value;
Contamination: the inadvertent transference of material from one sample to another.
As a rule, two laboratories should be used during a sampling campaign: a primary laboratory,
where all the original samples are assayed, and a secondary (or umpire) laboratory, where a
representative portion of the samples assayed at the primary laboratory are re-assayed. The
QA/QC program includes submission of original samples to the primary laboratory, accompanied
by a proportion (usually 5 % to 10 %) of blind control samples, and submission of a portion of
the original sample coarse rejects from the primary laboratory to the secondary laboratory, also
accompanied by a proportion (usually 5 % to 10 %) of blind control samples.
The purpose of the blind insertion of control samples is to prevent the laboratory from identifying
the control samples, or at least the nature and equivalency of the control samples. All accredited
laboratories have internal QA/QC procedures and usually the assay certificates include the
results of the internal QA/QC. However, some laboratories will only reveal those checks which
pass their internal controls but not the failures. For this reason, the internal laboratory QA/QC
should not replace the clients own QA/QC program.
A QA/QC program should monitor various essential elements of the sampling-assaying
sequence in an effort to control or minimize the total possible error in the sampling, splitting and
assaying sequence:
Sample collection and splitting (sampling variance, or sampling precision);

58
Sample preparation and sub-sampling (sub-sampling variance, or sub-sampling precision;
contamination during preparation);
Analytical accuracy, analytical precision and analytical contamination;
Data transfer accuracy (from paper to digital).
The QA/QC review, observations and recommendations made by AMEC in the June, 2008
NI 43-101 Mineral Resource estimate form the basis of this QA/QC report. Since the AMEC
report was completed, approximately 5,000 m of additional drilling has subsequently been
completed by Los Andes Copper and a review of the practices used for this drilling campaign
has been completed which in Coffeys opinion meets the required industry standard.
11.2 Historic Data
While there is little documentation for the procedures used by Placer or GMC during their drilling
programs, the original logs, assay batch forms and assay certificates are well maintained and
documented for all drill holes. The core for all drill holes is well maintained and carefully stored at
the project site. The majority of the GMC pulp samples are stored and documented at the project
site.
The average sample length for the Placer drilling is 1.1 m with numerous samples less than 1.0
m in length (Sim, 2005). This scale of sampling is small in relation to the type of mineralization
being sampled and the scale of mining typical of relatively low-grade, high-tonnage deposits of
this type.
The original hand written laboratory despatch sheets with the drill hole numbers, sample
numbers and the sample intervals are available for all the GMC drill holes. Photocopies of the
Placer assay certificates are available for all drill holes. The original signed assay certificates are
available for all the GMC drill holes. Photographs showing the un-cut core are available for drill
holes V-47 to V-63.
All drill cores were logged and split using either a manual core splitter or a diamond saw. The
core for all drill holes is stored at the Vizcachitas project site and is in good condition.
Samples from both the Placer and GMC rock chip sampling and drilling programs were
submitted to ACME Analytical Laboratories (Chile) Limitada (ACME) in Santiago, for analysis.
During the Placer and GMC drilling campaigns QA/QC programs were implemented by
introducing duplicate samples and two different standards for analysis within each batch. These
samples were not introduced at regular intervals but appear to have been sent every 20 to 40

59
samples, no blind sample system was implemented at this time and the laboratory noted blind
samples as duplicates in the assay logs.
Los Andes Copper has compiled and documented all the available data for the sampling and
assaying carried out by Placer and GMC. The final report prepared by Placer included the hand
drawn geological logs and photocopies of the ACME assay certificates (Acosta, 1993). Los
Andes Copper has the original assay dispatch forms and assay certificates for all the surface
sampling and drill sampling.
The original assay certificates have been scanned and the data captured using Optical
Character Recognition. The assay certificate data was imported into a MICROMINE GBIS
database. The scanned certificates were compared against the values in the historical database
and any differences were checked against the original certificates and data was corrected to
match the certificates. The number of errors identified was minimal indicating that both the
original database and the Optical Character Recognition database were compiled accurately.
A significant number of duplicate samples were sent to secondary laboratories namely Lakefield
Research Chile S.A. (Lakefield), CIMM Tecnologas y Servicios S. A. (CIMM) and ALS Geolab
S. A. (ALS). These are summarized in Table 11-1.
Table 11-1: GMC Secondary Laboratory Duplicates

The samples sent to all three laboratories show good correlation and the trend line plotted
shows that there is little bias between them. Figure 11-1, Figure 11-2 and Figure 11-3 illustrate
this bias for each laboratory.
Laboratory
No. of
Samples
Trend Line
Lakefield 957 y = 0.9275x
CIMM 497 y = 1.0237x
ALS 656 y = 0.9661x

60

Figure 11-1: GMC Secondary Laboratory Duplicates ACME vs. CIMM

61

Figure 11-2: GMC Secondary Laboratory Duplicates ACME vs. Lakefield

62

Figure 11-3: GMC Secondary Laboratory Duplicates ACME vs. ALS
Check assays for copper from drill holes V-28 through V-37 were performed by MRA as part of
the Kilborn study (Kilborn, 1998). According to MRA, the primary laboratory was ACME and
checks were performed by CIMM. Both, ACME and CIMM are commercial laboratories in Chile
and certified under ISO 9001. A total of 220 check assays were available for analysis. MRA
determined that a slight bias was present in the copper data at a 95 % confidence level. The
bias represents a difference of 0.005 % Cu.
GMC used 6 different CRMs in a discontinuous basis and without an established procedure and
ACME added their own reference material. This data has been extracted and shows that the
results are consistent with little variance and no change of precision over time. The results of the
ACME reference material are shown in Table 11-2. The results for STD_5 are shown in Figure
11-4.

63
Table 11-2: ACME Reference Material Results

Figure 11-4: ACME Reference Material STD_5
Only part of the samples from the copper oxide zone were assayed for soluble copper and of
those only a portion were assayed with sequential analysis. This type of analysis is an important
tool to define with analytical precision the limits of oxide-secondary sulphides-primary sulphides
mineralisation.
Subsequent to AMECs QA/QC review as part of the 2008 resource estimate Los Andes Copper
has taken steps to improve the level and accessibility of information pertaining to sample
preparation, assay procedures and quality control protocols. Most of the information is now
within Los Andes Coppers physical and electronic database, including 90-95 % of the assay
certificates and almost 100 % of drill logs resulting in a greatly improved level of QA/QC
standard for the Project.
11.3 Los Andes Copper QA/QC Results
Los Andes Copper implemented a quality control (QC) protocol consisting of the insertion of
seven control samples in every fifty-sample batch (14 % insertion frequency), as follows:
Coarse duplicates at a proportion of one per batch (2 %), prepared from rejects
corresponding to previously assayed batches stored at the camp facilities;
Sample Type Element
No. of
Samples
Average (%)
Standard
Deviation
CV (%) No. Outliers
Average
less outliers
(%)
GM STD-1 Cu 149 1.066 0.050 4.7 1 1.070
GM STD_2 Cu 90 0.485 0.032 6.6 5 0.492
GM STD_3 Cu 68 0.147 0.003 2.4 3 0.147
GM STD_5 Cu 118 10.620 0.019 1.8 3 10.620

64
Coarse blanks at a proportion of two per batch (4 %), consisting of coarse fragments of a
non-altered granodiorite that assayed approximately 100 ppm Cu and 10 ppm Mo;
Samples of four certified reference materials (CRMs) at a proportion of four per batch (8
%). Of these, two samples correspond to CRM OREAS 43P (for Mo), and two samples
correspond to CRM OREAS 92, OREAS 93 or OREAS 94 (for Cu). The three Cu CRMs
were alternated.
The OREAS CRMs were prepared by Ore Research & Exploration Pty Ltd. Assay Standard
(OREAS) of Victoria, Australia. Reference material OREAS 92 is one of a suite of nine CRMs
(OREAS 90 to OREAS 98) prepared from material from a CSA mine located near the town
Cobar in central western New South Wales, Australia. The mineralization is hosted by Devonian
carbonaceous sediments and consists of vein-controlled and massive sulphides including
chalcopyrite, pyrrhotite, pyrite, sphalerite, galena, bornite and cubanite. The OREAS standard
information is available on the web site http://www.oreresearch.com.au/products.htm and
OREAS (1997).
Los Andes Copper personnel inserted the control samples in the submission batches on site,
prior to submission to SGS. Los Andes Copper also submitted 5 % of the routine samples as
check samples (reject duplicates) to Actlabs laboratory (Actlabs) in La Serena. The Los Andes
Copper QC program did not include twin samples, pulp duplicates or pulp blanks.
AMEC recommended that such control samples be inserted in the same batches as the
originals. AMEC also recommended that pulp duplicates only needed to be submitted to a
secondary laboratory for external check of assay lab analytical accuracy.
According the AMEC report, all Los Andes Copper samples were submitted to SGS Lakefield
Research laboratory in Santiago. SGS prepared and assayed all samples in Chile. The
methodology applied in this certified laboratory is according to accepted industry procedures.
During the drill campaign carried out by Los Andes Copper, between 2007 and 2008, 10,092
samples were assayed for Cu by SGS making use of industry standard procedures. Cu grades
ranged from less than 0.001 % to 1.74 %. A total of 10,088 samples were assayed by SGS for
Mo and the grades ranged from 0.0005 % to 0.5 %.
As part the QA/QC review for the 2008 Technical Report, AMEC reviewed 100 coarse
duplicates, 714 certified reference materials and 356 coarse blanks taken during the drilling
campaign.
On completion of the 2007/2008 drilling campaign Los Andes Copper had inserted a total of 159
coarse duplicates, 940 certified reference materials and 469 coarse blanks into the samples sent
for analyses.

65
The total drilling programme for the Vizcachitas Project consists of 147 drill holes and a total of
24,252 samples were assayed mainly for Cu and Mo. The QA/QC program considered
duplicates, blanks and CRMs. A total of 6,219 certified representative materials were used.
These are as presented in Table 11-3.
Table 11-3: Number of Samples used in the Vizcachitas QA/QC program

Los Andes Copper submitted 2,700 blank or CRM samples which represented more than 10 %
of the total samples assayed in the Project.
Coffeys review of the Vizcachitas Project Mineral Resource estimate was completed based
upon information provided by Los Andes Copper. The company applied a QA/QC program
during the 2007-2008 drilling program that was later improved by AMEC. Samples, from the
entire drilling campaign were predominantly submitted to SGS, with lesser submissions to
Actlabs, largely at the beginning of the program.
11.3.1 Duplicates
During the 2007/2008 drilling campaign, a total of 159 coarse duplicates were added to the
batches. The copper failure rate was 4 % with a total of 6 failures. An acceptable level of
precision is achieved if the failure rate does not exceed 10 % of all pairs.
One coarse duplicate was inserted into each batch (2 %). Coarse duplicates are prepared from
the coarse reject sample form a previous sample batch that is inserted into a later batch.
Coarse duplicates check sample preparation and sub-sampling for variance, the sub-sampling
precision and contamination during preparation. Pulp duplicates test analytical accuracy,
analytical precision and analytical contamination.
As part the QA/QC review for the 2008 Technical Report, AMEC found that the sub-sampling
variance was within acceptable limits. However, AMEC suspected that some of the failing
duplicates may have actually been mix-ups, which should be reviewed. A detailed review and
validation of the assay database identified samples that had been mixed up has subsequently
been completed by Los Andes Copper.
Company Standards Samples % Cu Duplicates Blanks
Oreas 92 159 0.229
Oreas 93 153 0.582
Oreas 94 160 1.140
Oreas 43P 468 0.013
Los Andes
Cooper
1,291 469

66

Figure 11-5: Los Andes Copper Coarse Duplicates Analysis
Figure 11-5 and Table 11-4 presents the duplicate sample and error variation. Los Andes
Copper submitted a total of 1291 duplicates in the 2007 2008 drill programs. Statistical
analysis and comparison of the Los Andes Copper and GMC results (2,321 samples) shows that
results in both cases are acceptable, especially in Average, Median, Standard Deviation, Error
and Variance.

67
Table 11-4: Statistical results of Duplicate Samples from the Vizcachitas Project. (Los Andes Copper, June, 2013)

ACME GMC samples are shown to the left and the SGS - Los Andes Copper samples to the
right; all showing the original and duplicate values.
The diagrams for correlation coefficient, relative error and dispersion for the ACME and SGS
results are shown in Figure 11-6.
LABORATORY
PARAMETERS Cu (%)_Rou Cu (%)_Dup Cu (%)_Rou Cu (%)_Dup
Mean 0.320 0.319 0.333 0.333
Standard error 0.006 0.006 0.007 0.007
Median 0.267 0.267 0.301 0.303
Mode 0.016 0.016 0.319 0.243
Standard deviation 0.283 0.283 0.239 0.238
Sample variance 0.080 0.080 0.057 0.057
Kurtosis 6.547 7.110 2.173 2.172
Asymmetry coefficient 1.848 1.897 1.153 1.154
Range 2.397 2.412 1.683 1.684
Minimum 0.001 0.000 0.001 0.001
Maximum 2.398 2.412 1.684 1.695
Addition 741.647 740.736 430.185 429.535
Count 2321.000 2321.000 1291.000 1291.000
Mayor (1) 2.398 2.412 1.684 1.695
Low (1) 0.001 0.000 0.001 0.001
Confidence level (95.0%) 0.012 0.012 0.013 0.013
ACME - GMC SGS - LAC

68

Figure 11-6: Statistical Diagrams for Duplicate Samples
The results from both laboratories (ACME and SGS) present an acceptable graphical
comparison. There are clearly some outliers present and a small number of samples which fall
outside the accepted range; these may have resulted from external rather than analytical errors
such as wrongly numbering the samples, different sample submitted, etc.
From the information provided and as discussed previously Coffey believes that there are no
issues evident in the preparation and analysis of the duplicate samples. Coffey considers the
duplicate results have an acceptable level of precision to support the data base.
11.3.2 Certified Reference Materials (CRM)
Both GMC and Los Andes Copper used CRMs in their drilling programs. GMC used 6 different
CRMs in a discontinuous basis and without an established procedure. Los Andes Copper
established an adequate program to insert systematically 4 CRM types. Table 11-5 illustrates
the certified grades and results for the CRMs used.

69
Table 11-5: CRM Sample Summary

Table 11-5 clearly shows that the bias detected is low for Oreas 93, 94 and 95 (Cu standards),
with an important number of check samples. Conversely, Mo standard (Oreas 43P) shows a
high bias (-18.46 %), indicating this is a point to be improved in future drilling programs.
The numbers indicate that copper values from the laboratory are slightly higher than those
recommended but in an acceptable range. However, the molybdenum values reported by the
laboratory indicate a potential under estimation of the real Mo values in the deposit.
Figure 11-7 graphically presents the assay results and statistical parameters for Oreas 92.

Figure 11-7: Oreas 92 Assay Results
The graph shows most of the values of Oreas 92 are above the recommended value but below
the upper recommended value. Only a few samples are outside the 2 SD limits, mainly at the
beginning of the process. The laboratory has adjusted precision with time and the values in
general are acceptable. It is clear that the position of the assay results of this CRM above the
recommended value with a 5.46 % bias indicates that the low grade copper values could be
overestimated by this amount.
Figure 11-8 illustrates the distribution of Oreas 93, the medium copper grade standard.
Sample Type Element
No. of
Samples
Best Value
(%)
Confidence
Interval (%)
Average (%) Bias (%)
Oreas 92 Cu 159 0.229 0.0038 0.2415 5.46
Oreas 93 Cu 153 0.582 0.0072 0.5911 1.56
Oreas 94 Cu 160 1.140 0.0299 1.1527 1.11
Oreas 43P Mo 468 0.013 0.0005 0.0106 -18.46

70

This graph shows the samples are generally between the recommended limits and, as in the
case of Oreas 92, the laboratory may be reporting a slightly higher copper value in the sample
than is the case. This standard shows very a low bias (1.56 %), indicating the laboratory has a
good level of precision with acceptable values for the medium copper grades in the deposit.
Figure 11-9 presents the distribution of standard Oreas 94, the high copper grade CRM.

As in the other two standards, this figure shows that most of the values are located above the
Recommended Value limit, with many of them even above the +2 SD limit. This situation means
that it is probable that the higher grade copper values may be slightly over estimated.
The results have a low bias (1.11 %) indicating the lab has a good level of precision for the high
copper grades in the deposit.
Figure 11-10 illustrates the Mo CRM Oreas 43P.

71

Figure 11-10: Oreas 43P Assay Results
The assay results for the Mo CRM are under the -2 SD limit and, in consequence, have under
estimated Mo levels. The values indicate -18.6 % bias. AMEC detected this situation and
recommended that SGS were advised to correct the bias. However, the last assay results for
this sample are in the same position indicating the laboratory may not have taken remedial
action.
This CRM is also certified for Cu and its assay results are shown in Figure 11-11.

Figure 11-11: Oreas 43P Mo Standard for Cu
In contrast to the molybdenum values, the copper values for this sample show the values are
located with acceptable precision near or around the upper recommended limit (+ 2 SD), the
laboratory is working adequately with copper.

72
Coffey believes the assay results of the standards used in the Vizcachitas Project provide an
acceptable support to the data base at PEA level. Future drill campaigns must consider
improving the substandard situation detected for molybdenum assays.
11.3.3 Blank Samples
Los Andes Copper undertook quality assurance using many types of materials as blanks. The
statistics for 469 blank samples used by Los Andes Copper during the 2007-2008 drill campaign
are shown in Figure 11-12.

Figure 11-12: Blank Assay Values in the Vizcachitas Project
The figure illustrates that the blank samples submitted during the Los Andes Copper drilling
campaign show very low copper values, varying mainly between 0.005 and 0.020 % Cu. There
are two values with higher Cu content which may be due to the uncertified nature of these two
samples (both were taken in the area of the Vizcachitas deposit). There are some clear outliers
that are probably related to external reasons rather than to laboratory accuracy such as incorrect
numbering of samples.

73
Coffey believes the results give an acceptable level of confidence to the work completed by SGS
at this level of the Project. The results support the Vizcachitas data base to an acceptable level
of precision. It is recommended that better blank material is used for future works in the Project.
11.3.4 Samples to Check Laboratory
Los Andes Copper sent 440 check coarse rejects samples to Actlabs, a second laboratory for
independent validation. The results indicated an acceptable level of comparison between both
SGS and Actlabs and are as presented in Figure 11-13. The confirmation analyses showed
good correlation with error variations no greater than 20 %. This error may be explained by the
use of coarse rejects. Coffey recommends that pulp samples are used in the future.

74
Figure 11-13: Actlabs Check Samples
A small minority of samples showed over 40 % relative error; this is probably due to mix-ups.
Pulp samples would have a much better correlation.
11.4 Opinion on the Adequacy of Sample Preparation and Assay Quality
Coffey finds the sample preparation is adequate and meets the standard industry practice at this
level of the Vizcachitas Project.
Los Andes Copper has implemented a quality control programme which included the insertion of
coarse duplicates, CRMs and coarse blanks. The precision of sub-sampling is within the
acceptable limits for both copper and molybdenum. The accuracy for copper is good; however,
the accuracy for molybdenum is poorer and should be addressed in future programs.
11.5 Los Andes Copper Core Sampling
This section is adapted from the 2008 AMEC Technical Report. A site visit was made by AMEC
to review the Los Andes Copper core sampling procedures. Coffey made a recent site visit to the
project site to review the core and pulp storage but has had to rely on the previous report for
details related to the sampling procedures.
Los Andes Copper procedures ensured that core recovery was measured by drill run after being
removed from the core tube and recorded in digital format. During the site visit, AMEC observed
the drilling procedures and core, and confirmed that the core recovery was good.
Core boxes were brought to a covered site for logging and storage at the camp. The facility was
sufficiently large, clean and provided good lighting for logging and sufficient space for long term
storage of cores and samples.
The reject sample materials were stored in separate metal bins.
The core boxes were placed on wooden racks for logging. Initially, intervals were checked and
regularized at 2 m. The boxes were then photographed with a digital camera in three box sets.
Drill cores were adequately labelled and organized for efficient location and extraction of the
boxes and samples.
Core samples were systematically cut on 2 m intervals, using an industry standard core saw,
regardless of rock, alteration or zone types. The geologist did not mark the cutting line on the
core. Samples were submitted to the laboratory approximately every 10 days. Samples were
placed in numbered bags, in 50-sample batches. A local contractor, Osvaldo Hurtubia, was
responsible for sample transportation. Sample submissions were accompanied by chain of

75
custody forms, which were sealed and signed by a laboratory representative on reception of the
batch.
Collar coordinates, name of the logger, orientation, start and completion dates, were not
recorded on the log sheets in most cases. The completeness and legibility varied from one drill
file to another; however, the relevant information could be recognized in all reviewed files.
During the site visit, AMEC directly observed the logging and sampling operations. Such
procedures generally conformed to industry standard practices. However, Los Andes Copper
ignored major lithological contacts when defining the sampling intervals, which is considered a
poor practice and should be addressed in future drill campaigns.
AMEC recommended that, during future drilling, the responsible geologist draws the cutting line,
to avoid any inadvertent sampling bias and that major lithological boundaries are respected
when establishing the sampling intervals. The risk of biased samples can be avoided if the
technician alternates which half of the core is sent to the lab and which half is placed in the box
for each piece he cuts.
11.6 Specific Gravity Sampling and Determination
Los Andes Copper took specific gravity (SG) measurements on drill core on site using the
common water displacement method. Trained Los Andes Copper personnel conducted SG
determinations every 40 m down-hole or more frequently if major lithological changes occurred
within that interval. The bulk density samples ranged between 5 cm and 15 cm in length.
The determination procedure consisted of drying the sample, covering it with paraffin, and
weighing it in air and under water. The method measures the volume of water displaced by the
sample.
AMEC found that the sampling and specific gravity determination were adequate.
11.7 Los Andes Copper Assay Procedures
Lakefield Research in Santiago (SGS) was the primary analytical laboratory. SGS prepared and
assayed all samples from the last drill hole campaign conducted by Los Andes Copper. SGS is
certified under ISO 9001-2000. All assays were conducted in Chile.
Coffey has not received the SGS preparation and assaying protocols, but according to Los
Andes Copper geologists, samples were prepared as follows:
Drying at 105 C for three to four hours;
Crushing to 95 % passing 2.36 mm (8 mesh Tyler);

76
Homogenizing and splitting sample using rotary splitter to obtain a nominal 1,000 g
subsample for pulverizing;
Pulverizing the nominal 1,000 g split with an LM-2 pulverizer to 90 % passing 0.105 mm
(150 mesh Tyler);
Bagging two samples: 250 g for assaying, and 750 g for backup.
Samples were subsequently analyzed by Atomic Absorption Spectrometry (AAS) for total Cu
and Mo following three-acid digestion (Table 11-6). Occasionally, sulphuric acid-soluble Cu and
citric acid-soluble Cu were also determined. The methods used by SGS were AAS023G for Cu
and Mo, AAS051D for soluble sulphur-acid copper and AAS067D for citric acid-soluble copper.
SGS reported all these methods with a 0.001 % lower detection limit.
Table 11-6: SGS Analytical Methods

11.8 Opinion on the Adequacy of Sample Preparation and Assay Quality
Coffey finds the sample preparation is adequate and meets with standard industry practice. Los
Andes Copper has implemented a quality control programme which included the insertion of
coarse duplicates, CRMs and coarse blanks. The precision of sub-sampling is within the
acceptable limits for both copper and molybdenum. The accuracy for copper is good; however,
the accuracy for molybdenum is poor.
Element Digestion Determination Limits Lab Code
Total Cu, Cu: 0.001% to 10%
Total Mo Mo: 0.001% to 10%.
Soluble Sulphur-
acid Cu
A prepared sample (1.0 g
aliquot) is digested with 25
ml of sulfuric acid, 5% v/v
The resulting solution is
analyzed by atomic absortion
spectrometry (AAS) in AA-
Varian Spectra spectrometer
Cu: 0.001% to 10% AAS051D
Soluble Citric-
acid Cu
aliquot) is digested with 25
ml of citric acid, 1M
Cu: 0.001% to 10% AAS067D
aliquot) is digested with
nitric, chlorhidric and
perchloric acids
AAS023

77
12 DATA VERIFICATION
12.1 Summary
Information and data for this Technical Report were obtained from Los Andes Copper in
Santiago and also during a site visit undertaken by Coffey personnel on June 04, 2013. During
the visit, Coffey reviewed the location of selected drill holes collars from the 1995-1998 and
2007-2008 drilling campaigns and the location of the drill collar stick-ups. Coffey also reviewed
core boxes and sample storage.
Two drill core samples from different campaigns (V-34 and LAV-88, from GMC and Los Andes
Copper, respectively) were reviewed and original logging and assay results were compared with
visual observation. Both drill cores reviewed showed a good level of comparison and Coffey
finds this information is adequate to be used in the data base for geological and economic
modelling.
The relevant geological and metallurgical information was produced and reviewed in sufficient
detail to prepare this Technical Report.

Figure 12-1: Pulp Sample storage on the Property (source: Los Andes Copper, June 2013)

78
12.2 Site Visit
At the time of the visit, no exploration activity was taking place and only caretaking staff was
present on site.
12.3 Data Validation
12.3.1 Log Files
Los Andes Copper keeps the drill hole data in digital format. The spreadsheets contain all
relevant drill hole information.
AMEC compared twenty six drill core intervals from nine drill holes, representing 6.9 % of the
total drill holes, with drill hole logs and interpreted geological sections and paid special attention
to lithological and mineralized units and contacts. The main lithological contacts, alteration
features, structures and sample intervals, were adequately recorded in the database. AMEC
found there was good agreement between the geological interpretations, log records and digital
information. Coffey confirms that the database is reliable for use in resource estimation.
Coffey confirmed the logging from GMC was completed in hand written logs and then digitized.
The spreadsheets include all the variables used normally for porphyry Cu-Mo deposits. The Los
Andes Copper drill core logging was noted directly into PC tablets and meets the same standard
of information recorded.
Coffey observed there was an extreme detail in describing lithologies, which produced the
generation of more than twenty different rock types. This situation was partially cleaned up by
Los Andes Copper by compositing some units. Coffey recommends reviewing this situation in
future development of the Project to improve understanding of the geological and
geometallurgical units.
Hydrothermal alteration, one of the more characteristic variables of a porphyry copper deposit,
was not logged in detail and was not developed in sections to generate an alteration model.
Coffey recommends that Los Andes Copper should prepare adequate hydrothermal alteration
and lithological models.
12.3.2 Drill Hole Collars
AMEC checked the drill hole coordinates and altitude as part of the 2008 Technical Report and
found they are globally reliable. Coffey confirms this conclusion but recommends that the
topography be refined in the future.

79
Coffey did not review in detail the collar positions and accepts the AMEC conclusions. Coffey
physically checked the drill collars Los Andes Copper built, confirming they are in good condition
and according to industry practices.
12.3.3 Down-Hole Survey
Approximately 90 % of the drill holes down-hole survey is included in the database.
AMEC wrote in 2008: Almost all the drill holes were drilled inclined. Of those 130 drill holes
existing at the moment in the data base, 61 were surveyed. The average deviations of the
surveyed holes were 1.17 per 100 m in azimuth and 0.19 per 100 m in dip, which are
considered reasonable because the average depth of the drill holes is 284 m and no significant
departures of the trajectories are observed in plan. However, holes with depth greater than 100
m should be systematically surveyed down-hole.
Coffey confirms the down-hole information in the data base is acceptable for the purposes of this
Technical Report.
12.3.4 Database Review
Geological Data
Geological data is acceptable for the deposit. All the information is physically reliable with a
good support in both paper and digital format. Coffey recommends that additional detail for
lithologies and hydrothermal alteration must be considered in future work.
Assay Data
Los Andes Copper has a complete register in paper and digital format for all drill holes and
surface sampling. This includes information from the 3 companies that have worked at the
Property: Placer, GMC and Los Andes Copper. The information incorporates more than 95 % of
the data in a complete and secure validation. Coffey considers this information as acceptable.
12.4 Interpretation of Geology, Alteration and Mineralization
Los Andes Copper has constructed a geological model of the Vizcachitas Deposit based on 16
geological sections every 100 m and drill holes also approximately every 100 m in each section,
most of them drilled inclined. Geological sections are present in paper and digital format and
were focused on lithology and mineralization. Los Andes Copper did not work in horizontal levels
to complete a 3D control for the model.
AMEC found some minor discrepancies between rock observation and the logs.

80
Los Andes Copper has a good knowledge and understanding of the factors controlling
mineralization at Vizcachitas. Coffey reviewed the geological model, and finds that it is
consistent with the available information and drill core observations.
12.5 Specific Gravity
Both GMC and Los Andes Copper tested drill cores in the field using wet methodologies that
agree with industrial procedures. They tested cores from different lithologies (andesite, diorite,
granodiorite and tonalite) in an apparent proportion according their percentage in the deposit.
Los Andes Copper has assembled a reasonably comprehensive specific gravity (SG) database,
and Coffey finds that the SG data is reliable for resource estimation.
12.6 Opinion of Adequacy of the Database
Coffey reviewed the database and found it adequate for estimation purposes. However, Coffey
recommends that Los Andes Copper improves detail in the geological data (lithology and
alteration) and the geological model in order to verify the quality of results to be used in defining
geometallurgical units.

81
13 MINERAL PROCESSING AND METALLURGICAL TESTING
The Project has been subject to a number of physical characterisation and metallurgical test
programmes to determine process route and expected recoveries. Bond work and abrasion
indices have defined the mineral physical characteristics used in the development of the study
and both leach and flotation test work have been carried out on Vizcachitas samples to
determine likely process route and recovery estimations.
13.1 Comminution Test Work
13.1.1 1998: Ball Bond Work Index
In October 1998, Lakefield Laboratories (Lakefield Research Chile S.A., 1999a) determined
standard Bond Ball Work indices (Wi) for five of the composite samples using standard
procedures. Table 13-1 shows the results of the Bond test.
Table 13-1: Summary of Ball Bond Work Index (source: Lakefield Research Chile S.A., 1999a)

The work index values of the different composites presented rather large fluctuations ranging
from a low of 10.1 to a high of 13.5 kWh/st.
13.1.2 2008: SMC Test and Bond Abrasion Test
A total of 6 samples for comminution tests and 6 samples for abrasion tests were received at
SGS Mineral Services in August 2008 (SGS Minerals Services, 2009).
The results of the comminution tests showed that the mineral samples were rated as hard to
moderately hard. The results of the abrasion tests showed that the samples were rated as
moderately abrasive.
Table 13-2 and Table 13-3 show the results of SMC Test and abrasion index respectively.

P80
kW/t kWh/st m
B 14.9 13.5 115
C 11.5 10.4 109
E 11.1 10.1 115
H 12.9 11.7 118
I 12.9 11.6 117
Sample
Wi

82
Table 13-2: Summary of SMC Test (source: SGS Minerals Services, 2009)

Where:
DWi : Drop weight index (drop weight test)
Mia: Comminution energy for coarse particles (down to 750 m)
AxB: Parameters obtained from SMC Test
Ai: Abrasion index
Table 13-3: Summary Abrasion Index Test (source: SGS Minerals Services, 2009)

13.2 Flotation Test Work
The process route considers bulk and selective flotation of copper and molybdenum from the
mineralized rock. A series of metallurgical tests aimed at understanding the behaviour of the
Vizcachitas mineral to flotation processes were undertaken over several test work campaigns.
The database of flotation tests performed included the following programmes:
1996 Test work (Lakefield Research Chile S.A., 1996)
Dwi
[kWh/m
3
]
Mia
[kWh/t]
AxB
43506 2.58 7.5 22.3 34.28
43507 2.69 7.8 21.9 34.89
43508 2.57 6.6 20.2 39.40
43509 2.65 8.7 24.4 30.32
43510 2.55 5.7 18.2 44.49
43511 2.58 7.0 21.1 37.14
Sample
SMC test
SG
Initial Paddle Final Paddle Abrasion Index
weight (g) weight (g) Ai
43512 94.00 93.68 0.32
43513 94.67 94.31 0.36
43514 94.31 96.91 0.41
43515 94.80 94.33 0.47
43516 94.33 93.97 0.36
43517 94.71 94.31 0.40
Sample

83
Chemical analysis
Mineralogical analysis
Primary flotation kinetics
Open cycle test
1998 Test work (Lakefield Research Chile S.A., 1999a)
Chemical analysis
Open cycle test
Locked cycle test
2008 Test work (SGS Minerals Services, 2009)
Chemical analysis
Open cycle test
13.2.1 1996 Test Work
Seven small samples from two drill holes were submitted to Lakefield Research, Canada in 1996
(Lakefield Research Chile S.A., 1996). These samples seemed to be coarse rejects from the
drilling campaign at the time.
Table 13-4 presents the chemical analysis of the seven samples received. The head grades of
the samples varied from 0.50 to 1.31 % Cu and 47 to 275 ppm Mo. Precious metal values were
low, but silver values were 5 g/t in one sample. Arsenic values were low at 7 to 21 ppm.

84
Table 13-4: Chemical Analysis (source: Lakefield Research Chile S.A., 1996)

Mineralogical analysis showed that the principal copper mineral was chalcopyrite, but three of
the samples had significant amount of chalcocite and very minor amounts of covellite. Pyrite
values varied between 1 and 6 % by weight.
Table 13-5 shows the mineralogical characterization aimed at identifying the species present in
the samples and completed by automated quantitative mineralogy (QEMSCAN):
Table 13-5: Mineralogy (source: Lakefield Research Chile S.A., 1996)

Flotation tests were carried out on five of the samples; rougher tests and open-circuit cleaning
tests were also completed on the five samples. Rougher copper recoveries were very good in
Cu Mo Fe S Au Ag As
[%] [ppm] [%] [%] [ppm] [ppm] [ppm]
Saco 1 1.17 121 3.08 2.42 <0.01 4.4 16
Saco 2 0.74 47 3.58 1.80 0.01 2.2 8
Saco 3 0.50 73 6.35 0.92 0.02 1.3 12
Saco 4 1.31 57 5.05 3.52 0.02 5.1 8
Saco 5 0.95 117 3.62 1.40 0.02 1.5 8
Saco 6 0.64 115 2.84 2.80 0.03 1.0 7
Saco 7 0.67 275 3.21 3.70 0.01 1.3 21
Average 0.85 115 3.96 2.37 0.02 2.4 11
Maximum 1.31 275 6.35 3.70 0.03 5.1 21
Minimum 0.50 47 2.84 0.92 0.01 1.0 7
Standard dev. 0.30 76.80 1.27 1.05 0.01 1.66 5.29
Sample
Saco 1 Saco 3 Saco 5 Saco 6 Saco 7
Chalcopyrite 2.57 0.72 1.84 1.85 1.94
Chalcocite 0.24 0.26 0.35 - -
Covellite 0.12 0.08 0.05 - -
Tetrahedrite 0.02 - - - -
Pyrite 2.66 1.06 1.22 4.02 5.65
Molibdenite 0.02 0.01 0.02 0.02 0.02
Limonite 0.09 0.22 0.04 - -
Magnetite - 0.62 0.11 - 0.04
Hematite 0.06 0.16 0.08 0.57 0.51
Rutile 0.1 0.04 0.15 - 0.03
Non-Sulphide Gangue 94.12 96.8 96.14 93.54 91.82
Species
% Weight

85
the range of 91 to >98 % with good rougher grades. It should be noted that these tests were
carried out at a relatively fine grind of 100 microns.
Table 13-6 shows the results for the maximum flotation time tested (12 minutes).
Table 13-6: Summary of Rougher Flotation; time 12 min (source: Lakefield Research Chile S.A., 1996)

Molybdenum recoveries, with a few exceptions, were generally unsatisfactory; this was mainly
due to the fact that diesel which is commonly used as a promoter for molybdenite flotation was
not used during these tests.
Ten open-cycle tests were developed with three cleaning stages for different grind and regrind
product sizes.
Table 13-7 presents the results obtained. Copper recoveries on third cleaner stage of 98 % with
regrind size of 20 - 30 microns, with a final concentrate grade between 30 and 38 % were
obtained. A finer regrind product produced a lower grade copper concentrate. Recoveries are
calculated on each individual test.
MIBC
Reagent-
dosage
P80 Cu Mo Cu Mo Cu Mo Cu Mo
[g/t] [g/t] m [%] [%] [%] [%] [%] [%] [%] [%]
S1-1 15.0 3477 - 40 100 8.0 1.19 0.010 1.17 0.012 10.4 0.043 97.5 49.3
S1-2 n/i SIPX- 15 100 8.0 1.15 0.009 1.17 0.012 9.3 0.050 97.6 64.1
S3-1 20.0 3477 - 40 100 9.0 0.48 0.007 0.50 0.007 4.5 0.031 94.4 44.8
S3-2 12.5 SIPX- 15 100 8.0 0.46 0.007 0.50 0.007 4.7 0.035 91.0 45.0
S5-1 17.5 3477 - 45 100 8.5 0.96 0.008 0.95 0.012 9.8 0.045 97.6 57.5
S5-2 17.5 SIPX- 25 100 8.5 0.97 0.013 0.95 0.012 8.3 0.096 97.5 87.2
S6-1 15.0 3477 - 40 100 9.2 0.67 0.010 0.64 0.012 7.0 0.074 98.8 74.2
S6-2 17.5 SIPX- 25 100 9.4 0.63 0.013 0.64 0.012 6.0 0.108 98.1 88.5
S7-1 10.0 3477 - 40 100 9.1 0.68 0.029 0.67 0.028 6.5 0.169 98.7 61.5
S7-2 10.0 SIPX- 25 100 9.4 0.65 0.032 0.67 0.028 6.3 0.225 98.3 71.2
0.78 0.014 0.79 0.014 7.29 0.087 97.0 64.3
1.19 0.032 1.17 0.028 10.4 0.225 98.8 88.5
0.46 0.007 0.50 0.007 4.51 0.031 91.0 44.8
0.26 0.01 0.25 0.01 2.09 0.06 2.4 15.9 Standard deviation
Saco 1
Saco 3
Saco 5
Saco 6
Saco 7
Test
Rougher concentrate
Average
Maximum
Minimum
pH
Head, Dir. Head, Calc. Grade Recovery
Head
Conditions
Sample

86
Table 13-7: Cleaner Flotation Summary (source: Lakefield Research Chile S.A., 1996)

Grinding Regrind Cu Mo Cu Mo Cu Mo Cu Mo Cu Mo Cu Mo Cu Mo Cu Mo Cu Mo Cu Mo
[m] [m] [%] [%] [%] [%] [%] [%] [%] [%] [%] [%] [%] [%] [%] [%] [%] [%] [%] [%] [%] [%]
S1-3 92 30 1.19 0.011 1.17 0.012 9.4 0.056 97.7 65.4 26.4 0.050 97.9 31.1 34.2 0.037 98.6 55.5 37.7 0.026 98.9 63.3
S1-4 92 53 1.18 0.010 1.17 0.012 9.7 0.048 89.5 57.4 17.9 0.063 98.0 69.9 21.4 0.059 98.6 77.9 23.8 0.042 98.8 62.4
S3-3 92 19 0.44 0.007 0.5 0.007 5.7 0.048 97.8 47.2 22.7 0.164 96.3 83.2 27.3 0.190 98.5 94.8 29.9 0.200 98.7 94.8
S3-4 92 19 0.43 0.007 0.5 0.007 9.3 0.179 98.7 47.3 22.6 0.150 83.7 5.2 22.6 0.140 83.7 5.2 22.6 0.121 83.7 5.2
S5-3 100 24 1.04 0.013 0.95 0.012 9.8 0.105 98.3 79.9 28.0 0.130 97.9 42.2 34.6 0.125 98.8 76.8 36.4 0.110 99.4 83.4
S5-4 100 37 0.95 0.012 0.95 0.012 9.4 0.103 97.9 86.3 21.6 0.172 97.3 70.4 26.8 0.175 98.1 80.7 28.3 0.150 98.9 80.2
S6-3 135 25 0.74 0.016 0.64 0.012 9.3 0.179 97.8 87.1 24.3 0.412 98.2 86.8 28.1 0.415 99.0 86.2 29.9 0.340 98.8 76.0
S6-4 135 39 0.67 0.014 0.64 0.012 9.5 0.169 98.2 81.7 20.8 0.314 98.4 83.8 25.4 0.340 98.8 87.9 27.9 0.290 98.3 76.1
S7-3 114 20 0.73 0.033 0.67 0.028 10.1 0.313 98.3 66.9 23.6 0.327 98.2 43.9 29.0 0.259 99.1 63.8 31.5 0.180 98.4 63.0
S7-4 114 35 0.66 0.035 0.67 0.028 8.4 0.276 98.3 61.3 21.4 0.335 98.2 47.0 25.5 0.278 99.4 69.0 27.8 0.190 99.0 62.1
0.80 0.016 0.79 0.014 9.08 0.148 97.3 68.0 22.9 0.212 96.4 56.4 27.5 0.202 97.3 69.8 29.6 0.165 97.3 66.7
1.2 0.035 1.2 0.03 10.1 0.313 98.7 87.1 28.0 0.412 98.4 86.8 34.6 0.415 99.4 94.8 37.7 0.340 99.4 94.8
0.4 0.007 0.5 0.01 5.7 0.048 89.5 47.2 17.9 0.050 83.7 5.2 21.4 0.037 83.7 5.2 22.6 0.026 83.7 5.2
0.28 0.01 0.25 0.01 1.25 0.09 2.74 15.11 2.86 0.13 4.51 26.83 4.31 0.12 4.77 25.54 4.79 0.10 4.78 24.21
Saco 5
Saco 6
Saco 7
2nd Cleaner concentrate
Grade Recovery
3rd Cleaner concentrate
Grade Recovery
1st Cleaner concentrate
P80 Head, Dir.
Head
Test Sample
Conditions
Head, Calc.
Rougher concentrate
Saco 3
Grade Recovery
Saco 1
Grade Recovery
Standard deviation
Average
Maximum
Minimum

87
13.2.2 1998 Test Work
A total of 47 coarse reject samples were delivered to Lakefield Laboratories in October 1998 and
blended into 11 composite samples (labelled A to K), largely based on lithology but also on type
of mineralization (Lakefield Research Chile S.A., 1999a). The head grade of these composite
samples varied from 0.43 to 0.94 % Cu and 0.005 to 0.0140 % Mo. Some composite samples
contained silver grades up to 6 g/t. It was noted that some composite samples had significant
values of acid soluble copper, up to 20 %, which normally adversely affects the overall recovery
of copper minerals. Table 13-8 illustrates the description and chemical analysis of the samples.
Table 13-8: Sample Description and Chemical Analysis (source: Lakefield Research Chile S.A., 1999a)

Mineralogical examination of the composite samples showed that the principal copper mineral
was chalcopyrite. A few composite samples contained large proportions of chalcocite and
covellite. Three samples contained small amounts of tennantite/tetrahedrite and one sample
contained 7 % enargite.
Table 13-9 presents the sample mineralogy.

Cu Cu (citric) Cu(sulfuric) Cu(NaCN) Mo Fe Ag Zn
[%] [%] [%] [%] [%] [%] [ppm] [ppm]
A Andesite High grade enrichment 0.94 0.09 0.1 0.52 0.008 3.38 1.60 36
B Andesite Mixed 0.54 0.08 0.09 0.24 0.014 5.07 1.24 40
C Andesite Primary mineralization 0.53 0.01 0.02 0.09 0.005 2.09 0.60 39
D Granodiorite High grade enrichment 0.85 0.07 0.06 0.49 0.012 2.37 8.00 36
E Granodiorite Mixed 0.49 0.08 0.1 0.15 0.006 2.51 0.08 62
F Granodiorite Primary mineralization 0.49 0.02 0.02 0.11 0.009 1.07 0.12 36
G Diorite High grade enrichment 0.78 0.09 0.08 0.39 0.012 4.12 5.85 42
H Diorite Mixed 0.54 0.03 0.03 0.16 0.009 3.28 2.53 40
I Diorite Primary mineralization 0.43 0.02 0.02 0.07 0.012 3.82 2.86 65
J Breccia 0.53 0.05 0.04 0.17 0.012 3.6 2.17 107
K Porphyritic Dacite 0.59 0.05 0.05 0.18 0.009 3.58 2.84 62
Average 0.61 0.05 0.06 0.23 0.010 3.17 2.54 51
Maximum 0.94 0.09 0.10 0.52 0.014 5.07 8.00 107
Minimum 0.43 0.01 0.02 0.07 0.005 1.07 0.08 36
Standard deviation 0.17 0.03 0.03 0.16 0.003 1.10 2.44 21.71
Composite Rock type Grade

88
Table 13-9: Summary of Cu grade (wt. %) and Percent Distribution of different Cu-bearing minerals (source: Lakefield
Research Chile S.A., 1999a)

Rougher flotation tests were carried out at two different grind sizes with P80s of 100 and 150
microns. The best results were obtained at the finer grind using Aeropromoter 3477 and diesel
as a molybdenite promoter. Table 13-10 shows the results for Composite A.

Cu Chalcopyrite Chalcocite Covellite Bornite
Tetrahedrite/
Tennantite
[%] [%] [%] [%] [%] [%]
A 0.95 58.0 20.3 20.0 1.4 -
B 0.55 66.4 21.3 10.9 1.4 -
C 0.57 99.8 - - 0.2 -
D 0.96 73.3 18.5 4.8 0.2 2.1
E 0.59 79.6 2.7 13.3 1.6 2.8
F 0.50 97.0 - - - 3.0
G 0.78 59.0 18.0 23.0 - -
H 0.54 73.0 12.0 15.0 - -
I 0.43 98.0 1.0 - 1.0 7.0 (enargite)
J 0.53 66.0 4.0 7.0 14.0 -
K 0.59 78.0 3.0 7.0 12.0 -
Sample

89
Table 13-10: Summary of Rougher Flotation Test Composite A (source: Lakefield Research Chile S.A., 1999a)

It should be noted that this was a relatively high grade composite sample at over 0.9 % Cu.
The open cycle test was composed of rougher flotation stages, first cleaner, scavenger and
second cleaner. The grind size P
80
was 100 microns.
Table 13-11 shows the results of the test for the composites J and K (two tests for each
composite). It was noted that the finer regrind product (P
80
60 microns) generated a lower grade
copper concentrate at the second cleaning stage. Tests with regrind size P
80
of 28 microns
obtained concentrate copper grade of 30 %. The table also incorporates an estimate of
recoveries for locked cycle test work.

Cu Mo Cu Mo Cu Mo
3477 SIPX Diesel MIBC
DF-250
/MIBC
[%] [%] [%] [%] [%] [%]
A1 40 - - 10 - 100 0.94 0.014 9.6 0.130 94.4 81.2
A2 40 - - 10 - 150 0.98 0.014 9.4 0.110 88.9 74.6
A3 40 - 15 10 - 100 0.97 0.014 9.6 0.140 94.2 93.7
A4 20 20 - - 10 100 0.96 0.014 9.6 0.130 94.5 87.0
0.96 0.014 9.5 0.128 93.0 84.1
0.98 0.014 9.6 0.140 94.5 93.7
0.94 0.014 9.4 0.110 88.9 74.6
0.02 0.00 0.13 0.01 2.74 8.15
Minimum
Standard deviation
Test
Conditions Rougher concentrate
P80
Grinding
m
Grade Recovery
Calculated head
Average
Maximum
Reagent [g/t]
Collector Frothers

90
Table 13-11: Summary of Cleaner Flotation Result Samples J and K (source: Lakefield Research Chile S.A., 1999a)

Regrind Cu Mo Cu Mo Cu Mo Cu Mo Cu Mo Cu Mo
[m] [%] [%] [%] [%] [%] [%] [%] [%] [%] [%] [%] [%] [%] [%]
J5 28 0.54 0.009 6.4 0.100 93.7 89.6 21.0 0.290 88.2 75.0 29.9 0.390 85.0 67.5
J6 60 0.48 0.010 6.2 0.120 92.1 90.4 15.6 0.310 89.2 87.3 20.9 0.410 86.6 84.5
K5 28 0.58 0.007 9.3 0.100 94.5 86.2 23.7 0.230 89.5 74.1 30.4 0.280 86.3 67.1
K6 60 0.62 0.007 9.1 0.100 92.8 86.6 21.4 0.220 89.1 80.1 28.5 0.280 86.5 75.8
0.56 0.008 7.76 0.105 93.3 88.2 20.4 0.263 89.0 79.1 27.4 0.340 86.1 73.7
0.62 0.010 9.31 0.120 94.5 90.4 23.7 0.310 89.5 87.3 30.4 0.410 86.6 84.5
0.48 0.007 6.23 0.100 92.1 86.2 15.6 0.220 88.2 74.1 20.9 0.280 85.0 67.1
0.06 0.002 1.67 0.010 1.05 2.11 3.43 0.044 0.56 6.06 4.42 0.070 0.74 8.23
Cu
Mo
Calculated recovery (%)
Cleaning circuit (locked cycle)
97.3
89.4
Standard deviation
J
K
Grade
Maximum
Minimum
Average
Grade Recovery
Test Sample
Head, Calc. Rougher concentrate 2nd Cleaner concentrate
P80
Cu
1st Cleaner concentrate
Grade Recovery Recovery
Conditions
Mo

91
Five locked cycle tests using the same test circuit described in the open cycle test work were
completed. These tests were carried out for four samples obtained from mixing the 11 previous
composites. The composites of the four samples tested are as presented in Table 13-12.
Table 13-12: Composites used in Locked Cycle Test

The locked cycle test conditions were very similar to those used for the open circuit test work;
the main difference in operating conditions was that a small amount of sodium cyanide (NaCN)
was added to the roughing stage to suppress pyrite in two of the composite samples (JK and
CFI). The regrind size P
80
was 28 microns.
Table 13-13 shows the results of the test cycle. Composite CFI (primary mineralization) did not
generate a copper grade of commercial value (18.9 %); this test was repeated achieving the
same results.
Table 13-13: Summary of Locked Cycle Tests (source: Lakefield Research Chile S.A., 1999a)

Apart from the first composite sample, the head grades for these composites were in the range
of 0.5 to 0.6 % Cu.
ADG High grade enrichment ore
BEH Mixed ore
CFI Primary mineralisation ore
JK Breccia and dacitic rock type
Composite Composite represents
Cu Mo Cu Mo
[%] [%] [%] [%] [%] [%]
Cycle 1 ADG 0.97 0.012 36.8 0.260 90.8 51.7
Cycle 1 BEH 0.57 0.009 27.5 0.370 88.0 74.3
Cycle 1 JK 0.59 0.007 31.4 0.290 92.1 72.5
Cycle 1 CFI 0.51 0.013 18.9 0.510 77.2 83.7
Cycle 2 CFI - R 0.49 0.010 19.1 0.560 79.2 80.5
0.63 0.010 26.7 0.398 85.5 72.5
0.97 0.013 36.8 0.560 92.1 83.7
0.49 0.007 18.9 0.260 77.2 51.7
0.20 0.00 7.80 0.13 6.83 12.50
Maximum
Minimum
Standard deviation
Grade Recovery
Global
Average
Test Sample
Head, Calc
Cu Mo

92
The results, although somewhat variable, can generally be regarded as satisfactory; apart from
composite CFI, where both the final concentrate grade and recovery are poor.
Impurity analyses of the final concentrates showed that there were some impurities which were
above the limit normally permitted without incurring penalties (0.024 % Sb, 0.24 % As). This
should be reviewed in any future test work.
NaCN addition in rougher tests for depressing pyrite may have produced the low copper
recoveries noted for the locked cycle tests.
13.2.3 2008 Test Work
The metallurgical test program conducted in 2008 was completed by SGS Minerals Services
(Santiago) for Los Andes Copper.
A total of 6 samples were received in April 2008 and a further 5 samples were received in
October 2008; all of these samples were supplied for flotation test work. These samples were
coarse rejects from drilling campaigns.
Table 13-14 presents the chemical analysis of the eleven samples received. The mineral has a
copper grade between 0.34 to 0.76 % and has a molybdenum grade between 0.008 and 0.023
%.
Table 13-14: Chemical Analysis (source: SGS Minerals Services, 2009)

Rougher flotation tests were carried out on the first set of samples delivered at three different
grind sizes with P
80
s of 100, 130 and 160 microns.
Cu Mo Fe S As
[%] [ppm] [%] [%] [ppm]
32825 0.57 0.010 3.2 2.5 0.008
32826 0.37 0.021 3.0 1.0 0.005
32827 0.66 0.013 2.1 1.4 0.021
32828 0.53 0.015 3.7 1.5 0.007
32829 0.43 0.008 2.0 1.2 0.005
32830 0.76 0.011 4.8 1.3 0.006
43522 0.34 0.023 2.8 1.2 0.005
43523 0.60 0.010 1.9 1.2 0.008
43524 0.48 0.011 3.6 1.2 0.005
43525 0.41 0.010 2.1 1.5 0.005
43526 0.64 0.012 3.5 1.3 0.005
Average 0.53 0.013 3.0 1.4 0.007
Maximum 0.76 0.023 4.8 2.5 0.021
Minimum 0.34 0.008 1.9 1.0 0.005
Standard dev. 0.13 0.005 0.9 0.40 0.005
3rd
Shipment
1st
Shipment
Sample Shipping

93
Table 13-15 and Table 13-16 show the summary of results obtained in the rougher kinetics
flotation test.
Very good rougher recoveries, in the range of 94 % to >98 % were achieved for all of the
composite samples. The grind had significantly less of an effect on the rougher recovery when
compared to previous test work; the recoveries were less than one percent lower for the coarser
grind than for the finer grind.
Rougher grades were lower than those from previous test work, in the range of 3 to 6 % Cu, but
still sufficiently high to allow upgrading to commercial grade concentrates.
Molybdenum rougher recoveries were also very good at up to 96 % Mo (range 88 % to 96 %),
while the rougher grades were relatively low due to the lower head grades.
Table 13-15: Cumulative Cu Recoveries and Grades at different P80 12 minutes flotation residence time (source: SGS
Minerals Services, 2009)

Recovery Grade Recovery Grade Recovery Grade
[%] [%] [%] [%] [%] [%]
32825 98.6 4.0 98.3 5.3 98.3 5.4
32826 98.1 3.3 98.1 2.9 97.6 3.8
32827 97.8 6.0 97.4 5.7 97.4 5.9
32828 97.1 3.9 96.8 3.6 97.1 4.1
32829 98.5 4.0 98.6 4.2 97.7 4.6
32830 94.6 6.7 94.1 6.0 94.3 6.7
Average 97.5 4.7 97.2 4.6 97.1 5.1
Maximum 98.6 6.7 98.6 6.0 98.3 6.7
Minimum 94.6 3.3 94.1 2.9 94.3 3.8
Standard dev. 1.5 1.4 1.7 1.2 1.4 1.1
Sample
100 microns 130 microns 160 microns
Copper

94
Table 13-16: Cumulative Mo Recoveries and Grades at different P80 12 minutes flotation residence time (source: SGS
Minerals Services, 2009)

Open-circuit cleaning tests were carried out on the first six samples delivered to SGS. These
were completed at two regrind sizes with P
80
s of 35 microns and 50 microns and included two
stages of cleaning. An initial grind size P
80
of 160 microns was defined for all tests.
The results of these tests were disappointing and produced poor grades after two stages of
cleaning, in the range of 14 to 24 % Cu for the finer regrind. The grades at the coarser regrind
were even lower. The results of these tests are shown in Table 13-17 and Table 13-18. The
tables also incorporate an estimate of recoveries for locked cycle circuit.
Recoveries are calculated for each individual test.

Recovery Grade Recovery Grade Recovery Grade
[%] [%] [%] [%] [%] [%]
32825 87.6 0.101 73.0 0.053 93.0 0.127
32826 96.3 0.242 96.5 0.218 96.3 0.266
32827 94.1 0.134 94.2 0.129 89.5 0.139
32828 90.9 0.153 95.4 0.141 87.5 0.160
32829 91.4 0.108 91.5 0.106 90.5 0.111
32830 92.3 0.102 92.3 0.093 92.1 0.095
Average 92.1 0.140 90.5 0.123 91.5 0.150
Maximum 96.3 0.242 96.5 0.218 96.3 0.266
Minimum 87.6 0.101 73.0 0.053 87.5 0.095
Standard dev. 3.0 0.054 8.8 0.056 3.1 0.061
Sample
100 microns 130 microns 160 microns
Molybdenum

95
Table 13-17: Copper and Molybdenum Recovery, regrind at 35 microns two cleaner stages (source: SGS Minerals Services, 2009)

Rougher
1st
cleaner
2nd
cleaner
Rougher
1st
cleaner
2nd
cleaner
Rougher
1st
cleaner
2nd
cleaner
Rougher
1st
cleaner
2nd
cleaner
1 32825 97.1 97.9 91.2 7.9 16.6 19.8 89.8 96.8 86.3 0.13 0.27 0.31
2 32826 96.1 97.5 92.4 5.5 12.0 14.2 94.9 98.1 92.0 0.30 0.65 0.77
3 32827 96.3 96.2 90.2 8.4 18.4 21.2 92.7 95.7 87.9 0.16 0.36 0.40
4 32828 96.0 95.6 90.7 4.2 12.4 16.5 93.7 94.7 87.0 0.11 0.32 0.41
96.1 96.2 89.4 6.0 15.2 19.0 88.8 95.2 86.2 0.14 0.35 0.42
97.8 97.9 92.4 8.4 18.4 24.4 94.9 98.1 92.0 0.30 0.65 0.77
93.4 92.4 80.2 4.2 12.0 14.2 73.1 89.7 73.6 0.07 0.24 0.31
1.5 2.0 4.6 1.8 2.8 3.6 8.0 2.9 6.5 0.08 0.15 0.18
99.1 93.0
Minimum
Standard dev.
Average
Maximum
Mo grade [%]
Test Sample
Regrind of 35 microns Regrind of 35 microns
Cu recovery [%] Cu grade [%] Mo recovery [%]

96
Table 13-18: Copper and Molybdenum Recovery, regrind at 50 microns two cleaner stages (source: SGS Minerals Services, 2009)

The conditions for cleaner stages were changed and tested on four samples; a finer regrind with a P
80
of 25 microns and three stages
of cleaner were tested. There was generally an improvement in recovery and concentrate grade as shown in Table 13-19:

Rougher
1st
cleaner
2nd
cleaner
Rougher
1st
cleaner
2nd
cleaner
Rougher
1st
cleaner
2nd
cleaner
Rougher
1st
cleaner
2nd
cleaner
7 32825 97.1 98.0 93.0 7.8 16.1 18.8 90.1 97.1 91.6 0.13 0.27 0.31
8 32826 97.2 97.6 93.7 5.4 13.5 17.0 94.9 98.0 93.9 0.29 0.72 0.91
9 32827 96.4 93.9 83.7 8.1 19.1 21.8 92.9 93.7 83.9 0.16 0.38 0.44
10 32828 96.4 95.0 87.7 4.1 13.2 16.9 93.6 93.7 81.2 0.11 0.34 0.40
11 32829 96.4 97.8 93.6 4.8 13.3 17.0 88.5 96.2 89.8 0.09 0.24 0.29
12 32830 93.0 95.4 84.7 3.9 13.5 20.6 84.6 95.6 83.8 0.06 0.19 0.29
96.1 96.3 89.4 5.7 14.8 18.7 90.7 95.7 87.4 0.14 0.36 0.44
97.2 98.0 93.7 8.1 19.1 21.8 94.9 98.0 93.9 0.29 0.72 0.91
93.0 93.9 83.7 3.9 13.2 16.9 84.6 93.7 81.2 0.06 0.19 0.29
1.5 1.8 4.6 1.8 2.4 2.1 3.8 1.8 5.1 0.08 0.19 0.24
96.9
Average
Maximum
Minimum
Standard dev.
99.2
Cu recovery [%] Cu grade [%] Mo recovery [%] Mo grade [%] Test Sample

97
Table 13-19: Copper and Molybdenum Recovery, regrind at 25 microns three cleaner stages (source: SGS Minerals Services, 2009)

Open-circuit cleaner tests were carried out on the five samples delivered to SGS in October 2008. These were completed at a regrind
size with a P
80
of 35 microns and three stages of cleaner. The results of these tests are shown in Table 13-20:

Rougher
1st
cleaner
2nd
cleaner
3rd
cleaner
Rougher
1st
cleaner
2nd
cleaner
3rd
cleaner
Rougher
1st
cleaner
2nd
cleaner
3rd
cleaner
Rougher
1st
cleaner
2nd
cleaner
3rd
cleaner
13 32825 97.4 93.2 81.1 69.2 4.7 16.6 27.1 31.6 90.8 89.9 78.2 67.4 0.09 0.30 0.47 0.54
14 32826 97.9 93.2 92.8 69.3 3.7 14.1 18.2 22.2 95.9 94.2 91.1 69.8 0.2 0.7 0.9 1.1
15 32827 95.7 91.3 89.8 82.6 9.9 27.0 32.8 34.5 92.5 88.7 85.1 81.2 0.2 0.5 0.6 0.6
16 32830 91.1 87.9 79.2 66.5 5.2 19.9 23.6 25.2 88.8 87.8 76.5 67.3 0.1 0.3 0.3 0.4
95.5 91.4 85.7 71.9 5.9 19.4 25.4 28.4 92.0 90.2 82.7 71.4 0.14 0.45 0.58 0.66
97.9 93.2 92.8 82.6 9.9 27.0 32.8 34.5 95.9 94.2 91.1 81.2 0.19 0.72 0.92 1.13
91.1 87.9 79.2 66.5 3.7 14.1 18.2 22.2 88.8 87.8 76.5 67.3 0.07 0.28 0.32 0.35
3.1 2.5 6.6 7.3 2.7 5.6 6.2 5.7 3.0 2.8 6.7 6.6 0.06 0.21 0.25 0.33
98.0 94.6
Minimum
Standard dev.
Average
Maximum
Cu recovery [%]
Regrind of 25 microns
Mo recovery [%] Mo grade [%]
Regrind of 25 microns
Cu grade [%]
Test Sample

98
Table 13-20: Copper and Molybdenum Recovery, regrind at 35 microns three cleaner stages (source: SGS Minerals Services, 2009)

Rougher
1st
cleaner
2nd
cleaner
3rd
cleaner
Rougher
1st
cleaner
2nd
cleaner
3rd
cleaner
Rougher
1st
cleaner
2nd
cleaner
3rd
cleaner
Rougher
1st
cleaner
2nd
cleaner
3rd
cleaner
17 43522 95.4 96.8 94.7 85.6 3.7 14.7 23.6 28.5 92.1 97.0 93.2 85.3 0.2 1.0 1.5 1.8
18 43523 95.0 95.3 95.7 84.4 7.7 26.5 31.0 33.6 91.1 94.2 95.0 83.9 0.13 0.44 0.51 0.55
19 43524 96.0 95.8 92.5 87.0 3.7 17.0 26.7 30.6 90.7 93.8 88.5 81.3 0.08 0.36 0.54 0.58
20 43525 97.0 94.6 75.4 57.0 5.7 17.0 26.1 30.3 91.7 92.4 68.6 51.5 0.15 0.44 0.61 0.64
95.6 95.1 86.5 73.7 5.7 20.9 28.7 32.2 91.8 94.1 83.0 71.4 0.15 0.57 0.79 0.88
97.0 96.8 95.7 87.0 7.7 29.2 36.1 37.8 93.5 97.0 95.0 85.3 0.24 0.96 1.52 1.83
94.5 93.3 74.0 54.4 3.7 14.7 23.6 28.5 90.7 92.4 68.6 51.5 0.08 0.36 0.51 0.55
0.9 1.3 10.8 16.5 2.0 6.5 4.9 3.6 1.1 1.8 12.8 16.8 0.06 0.25 0.42 0.54
98.8 96.4
Minimum
Standard dev.
Average
Maximum
Mo grade [%]
Test Sample
Cu recovery [%] Cu grade [%] Mo recovery [%]

99
13.3 Leach Test Work
The database of leach tests completed included the following programmes:
1999 Test work (Lakefield Research Chile S.A., 1999b)
Chemical analysis
Acid leach tests
Ferric leach tests
Bacterial-assisted leach tests
1999-2000 Test work (Lakefield Research Chile S.A., 2000)
Chemical analysis
Column leach test
2001 Test work (Little Bear Laboratories, Golden, Colorado, 2001)
Chemical analysis
Column leach test
13.3.1 1999 Test Work
The first leach tests were carried out at Lakefield Research in Santiago in 1999. (Lakefield
Research Chile S.A., 1999b)
Approximately 515 diamond drill core rejects were received and 29 composite samples were
prepared considering different rock type, elevation and grade.
Chemical characterization of each composite and mineral characterization of selected
composites was completed prior to the leaching tests.
Three different types of agitation leach tests were carried out, as follows:

100
Acid leach tests
Ferric leach tests
Bacterial-assisted leach tests
The tests were all carried out in 0.5 litre bottles under roll agitation.
Head grades varied from CuT: 0.21 1.25 %, CuAS: <0.01 0.09 % and CuCN: 0.02 0.94 %
(See Table 13-21).

101
Table 13-21: Chemical Analysis Results (source: Lakefield Research Chile S.A., 1999b)

(*) Total sample analysis
CuT FeT CuT FeT Cu(AS) Cu(CN)
1 0.33 6.34 0.26 5.85 0.03 0.13
2 0.74 2.37 0.51 2.24 0.02 0.23
3 0.55 3.24 0.48 3.33 0.09 0.26
4 0.34 4.81 0.27 4.39 0.03 0.15
5 0.57 2.65 0.39 2.52 0.03 0.16
6 0.45 5.74 0.35 5.16 0.04 0.14
7 0.36 2.31 0.26 2.32 0.02 0.1
8 0.66 4.79 0.57 4.5 0.06 0.28
9 0.87 6.09 0.62 5.78 0.05 0.30
10 0.59 2.8 0.46 2.6 0.05 0.21
11 1.14 5.4 0.69 4.98 0.07 0.38
12 0.54 4.43 0.53 4.67 0.04 0.28
13 0.49 2.31 0.38 2.44 0.01 0.12
14 0.54 3.28 0.35 3.15 0.03 0.14
15 0.88 5.09 0.65 5.02 0.04 0.32
16 0.58 2.43 0.45 2.38 0.01 0.16
17 0.75 3.51 0.52 3.47 0.03 0.21
18 0.7 4.43 0.66 5.03 0.03 0.15
19 0.38 1.81 0.27 2.14 0.01 0.08
20 0.42 3.52 0.34 3.76 0.01 0.07
21 1.37 4.65 1.25 4.35 0.03 0.94
22 0.48 1.82 0.33 1.82 0.01 0.08
23 0.5 3.34 0.34 3.18 0.01 0.06
24 0.45 4.56 0.35 4.39 0.01 0.04
25 0.37 2.14 0.28 2.33 0.01 0.04
26 0.44 3.1 0.35 2.95 <0.01 0.03
27 0.43 4.1 0.29 3.71 <0.01 0.03
28 0.31 1.89 0.21 2.14 0.01 0.02
29 0.4 2.85 0.29 3.05 <0.01 0.03
Average 0.57 3.65 0.44 3.57 0.03 0.18
Maximum 1.37 6.34 1.25 5.85 0.09 0.94
Minimum 0.31 1.81 0.21 1.82 < 0.01 0.02
Standard dev. 0.24 1.34 0.21 1.21 0.02 0.18
Sequential assay [%]
Size fraction -20 +100 mesh [%]
Head grade [%] Composite Head grade [%]
Composite (*)

102
Table 13-22 showed that the mineralogy of the samples varied as follows:
Chalcopyrite : 46.1 - 99.0 %
Chalcocite : 0.9 - 33.3 %
Covellite : 1.1 - 26.9 %
Bornite : 0.1 - 8.8 %
Grey Copper(*) : 0.5 - 8.1 %
The mineralogy indicated that the samples generally contained high sulphur mineral content,
with only small amounts of oxide minerals present.
(*) Grey Copper is a mineralogical species classification, consisting of copper sulphides in
combination with antimony or arsenic. In this case, specific species are Tennantite and
Tetrahedrite.

103
Table 13-22: Mineralogical Results (source: Lakefield Research Chile S.A., 1999b)

104
Leaching test
Acid leach tests
15 grams of -20 to +100 Mesh composite sample were agitated with 150 ml of a 50 g/l
sulphuric acid leach solution for 15 days.
The objective of this test was to dissolve the copper oxide species. Some secondary
sulphide copper minerals could also be oxidized due to oxygen dissolution from air or ferric
dissolution from the ore sample.
Ferric leach tests
15 grams of -20 to +100 Mesh composite sample were agitated with 150 ml of a 50 g/l
sulphuric acid and 10 g/l Fe
3+
as Fe
2
(SO
4
)
3
leach solution for 45 - 76 days.
The objective of this test was to dissolve the copper oxide species plus secondary
sulphide copper species.
Bacterial leach tests
15 grams of -20 to +100 mesh composite sample were agitated with 150 ml of a specially
prepared culture solution, typically employed for enhancing bacterial growth. The tests
were run for 60 - 70 days under a relatively constant temperature of 30C. Initial iron
concentration was 1 g/l Fetot, as FeSO
4
. Inoculation was applied on day 3, and the pH
was kept constant at 1.8
The objective of this test was to dissolve the copper oxide species plus secondary sulphide
copper species, under bacterial leach conditions.
The results of all these tests are presented in Table 13-23.

105
Table 13-23: Agitation Leach Test Results on 29 Composites Samples (source: Lakefield Research Chile S.A., 1999b)

CuT Cu
(AS)
Cu
(sulph)
Acid Ferric Bacterial
1 0.26 0.03 0.23 40.0 49.7 55.3
2 0.51 0.02 0.49 33.4 45.4 49.5
3 0.48 0.09 0.39 62.0 70.6 76.1
4 0.27 0.03 0.24 46.3 60.9 59.7
5 0.39 0.03 0.36 27.3 43.6 44.7
6 0.35 0.04 0.31 36.8 46.5 42.9
7 0.26 0.02 0.24 27.2 40.6 41.5
8 0.57 0.06 0.51 43.4 55.6 58.3
9 0.62 0.05 0.57 41.1 53.6 57.5
10 0.46 0.05 0.41 36.8 48.3 57.0
11 0.69 0.07 0.62 39.9 55.5 53.8
12 0.53 0.04 0.49 47.9 48.3 57.8
13 0.38 0.01 0.37 24.0 50.3 31.1
14 0.35 0.03 0.32 34.8 56.1 47.6
15 0.65 0.04 0.61 44.5 56.3 56.8
16 0.45 0.01 0.44 30.2 35.8 37.5
17 0.52 0.03 0.49 37.0 43.7 46.5
18 0.66 0.03 0.63 17.7 24.4 28.2
19 0.27 0.01 0.28 19.0 27.1 30.1
20 0.34 0.01 0.33 10.4 19.1 21.7
21 1.25 0.03 1.22 24.3 35.5 35.9
22 0.33 0.01 0.32 13.6 23.8 22.3
23 0.34 0.01 0.33 7.7 19.3 16.3
24 0.35 0.01 0.34 6.5 9.6 14.9
25 0.28 0.01 0.27 7.1 13.5 11.6
26 0.35 <0.01 0.34 2.3 6.5 8.9
27 0.29 <0.01 0.29 1.7 4.3 6.1
28 0.21 0.01 0.2 2.3 6.6 6.6
29 0.29 <0.01 0.28 1.2 3.2 6.0
Average 0.44 0.03 0.41 26.4 36.3 37.3
Maximum 1.25 0.09 1.22 62.0 70.6 76.1
Minimum 0.21 0.01 0.20 1.2 3.2 6.0
Standard dev. 0.21 0.02 0.20 16.77 19.53 19.85
Composite
Copper recovery [%] Head grade [%]

106
Leach tests
Total copper dissolution (based on residue and solution values) varied from 1.2 % to
62.0 % (Composite 3) Note that composites 23 to 29 all returned dissolutions of less than
10 %; these composites contained over 90 % chalcopyrite.
Ferric leach tests
Total copper dissolution (based on residue and solution values) varied from 3.2 % to 70.6
% (Composite 3). Note that composites 23 to 29 all reported dissolutions of less than 20
%; these composites contained over 90 % chalcopyrite.
Bacterial leach tests
Total copper dissolution (based on residue and solution values) varied from 6.0 % to 76.1
% (Composite 3). Note that composites 23 to 29 all reported dissolutions of less than 20 %
- these were the composites with over 90 % chalcopyrite.
Comments:
17 of the 29 composites contained more than 80 % chalcopyrite present, so it is not
surprising that the results were so poor.
Composite 3 contained the lowest proportion of chalcopyrite present, at 46 %.
However, at a high chalcopyrite content in the ore, bacterial leaching is not likely to result
in acceptable recoveries; grinding and flotation is by far the better option for high
chalcopyrite ores.
13.3.2 1999-2000 Test Work
The second set of leach tests were also carried out in Lakefield Research in Santiago in 1999
2000. (Lakefield Research Chile S.A., 2000).
A column leach test work program was carried out on five different samples from Vizcachitas.
The objective of the study was to characterize the metallurgical response of these ores when
processed under bacterial leaching conditions.
The received diamond drill rejects were crushed to 100% - with a P
80
of , and analysed
for chemical and mineralogical content. Three of the mineral samples contained variable
amounts of chalcocite with copper grades ranging from 0.6 0.8 % CuT. The other two samples

107
were low grade containing approximately 0.4 % CuT, mainly present as chalcopyrite.
Preliminary acid consumption tests were carried out to determine the amount of acid to add to
agglomeration.
Five, 2 m high by 0.10 m diameter columns were charged and leached in April 1999 using an
open circuit with an irrigation rate of 6 l/h/m
2
. The columns were continuously inoculated with a
mixture of typical ferro-oxidising bacteria for about 180 days. After this period, air injection and
recycling of solutions and a solvent extraction (SX) operation on a weekly basis was used. The
overall leach period was 310 days.
The characterization of samples and results of the tests are shown in Table 13-24.
Table 13-24: Leach Test Summary (source: Lakefield Research, 2000)

(*)Based on head-tailings copper balance.
Better recoveries were obtained with samples with higher proportions of chalcocite.
SGS reached the conclusion that the chalcopyrite samples from Vizcachitas are not amenable to
conventional heap leach process using bacterially-assisted ferric leaching. They also
commented that secondary-enriched mineralization could be treated by this process, but further
work needed to be undertaken to improve copper dissolution kinetics and final copper extraction.
Column identification Unit
Columm
1
Columm
2
Columm
3
Columm
4
Columm
5
Average Maximum Minimum
Head grade
CuT % 0.588 0.798 0.795 0.431 0.404 0.603 0.798 0.404
CuT (seq) % 0.613 0.786 0.796 0.425 0.406 0.605 0.796 0.406
Cu (AS) % 0.103 0.035 0.078 0.040 0.100 0.071 0.103 0.035
Cu (CN) % 0.259 0.353 0.205 0.056 0.066 0.188 0.353 0.056
Cu(rec) % 0.347 0.394 0.283 0.097 0.165 0.257 0.394 0.097
Mineralogy
Chalcopyrite % 52.4 58.8 80.0 99.7 82.8 74.7 99.7 52.4
Chalcocite % 30.5 20.3 14.9 0.2 12.6 15.7 30.5 0.2
Bornite % 0.01 0.00 1.50 0.01 1.49 0.60 1.50 0.00
Covellite % 17.2 19.5 3.6 0.0 1.4 8.3 19.5 0.0
Column leach test results
Cu recovery (*) % 42.5 34.9 17.3 4.0 8.4 21.42 42.5 4.0
Total acid consumptions kg/t ore 74.8 40.8 69.9 61.7 51.2 59.68 74.8 40.8
Net acid consumptions kg/kg Cu 30.6 13.9 55.6 2,021.50 259.6 476.24 2,021.50 13.9

108

13.4 2001 Test Work
The third set of leach tests was carried out at Little Bear Laboratories, Golden, Colorado, U.S.A.
(Little Bear Laboratories, Golden, Colorado, 2001). This was completed in 1999 2000 using
samples received from Lakefield Research in Santiago.
All the samples were blended into a single sample, with a head grade of 0.421 % Cu occurring
almost totally (97 %) as chalcopyrite. The purpose of this test was to determine if thermophilic
microorganisms and/or control of redox potential improved the rate and total extraction of copper
from the mineral.
Small 3 kg samples were agglomerated with dilute sulphuric acid and loaded into 5 columns, 4
in diameter and 24 tall.
The columns to be operated at 50 C and 65 C were wrapped with heat tape; temperature was
controlled with a temperature probe and thermistor.
The columns to be operated at 35 C were placed inside a temperature-controlled cabinet.
The initial leach solution composed of 400 ml of a modified medium (at pH 1.6 with sulphuric
acid) containing 4.0 g/l of Fe
2+
(ferrous sulphate) plus 100 ml of a starter culture, composed of
mixed cultures of iron and sulphur oxidizing mesophilic, moderately thermophilic and extremely
thermophilic organisms.
The results of these tests are presented in Table 13-25.

109
Table 13-25: Bacterial Leach Test Results (source: Little Bear Laboratories, Inc., 2001)

13.5 Conclusions
It seems unlikely that heap leaching of Vizcachitas sulphide mineralisation will be a good
process route. The milling-flotation route for the sulphide material is a much better route,
based on recoveries and economics
A review of the mineralogical analysis of the samples submitted for the leach testing and a
review of the location from where these samples were collected indicate that even the
samples collected near to surface have a high percentage of chalcopyrite. Of all the leach
samples the lowest percentage chalcopyrite is 46 % in Composite 3, See Table 13-22 for
further detail.
The mineralogical analysis indicates that there is not enough soluble copper in the domain
that was identified in 2008 as Oxide and should be renamed a Mixed mineralization zone.
These findings were confirmed as part of the current personal inspection by the Qualified
Persons.
Mineralogical analysis shows that the principal copper mineral was chalcopyrite.
Column
Operating
temperature [C]
Innoculation
with
Aeration
Days of
operation
Copper
extraction
[%]
1
65
range 64 - 70
Moderate +
extreme thermophiles
Yes 215 52
2
50
range 49 - 53
Moderate +
extreme thermophiles
Yes 215 38
3
35
range 34 - 36
Mesophiles Argon 172 26
4
35, then to 65
after 172 days
Mesophiles, then
thermophiles at 172 d
Yes 256 39
5
35
range 34 - 36
Mesophiles No 172 14

110
The amount of testwork carried out is considered sufficient to support a PEA. A number of
testwork programs were carried out on different occasions using different composites.
However much of the earlier work was with high grade composites and thus this work is of
limited relevance to the current anticipated head grades.
Overall the flotation results are generally supportive of the copper and molybdenum
recoveries selected for use in the economic evaluation. However there is some variability
in the results and in some tests the concentrate grades and recoveries were not
satisfactory. Thus although reasonable confidence can be given to the selected
parameters, some caution must be taken and further testwork is considered to be essential
for the PFS. It should be noted that the current report authors were not involved in any of
the previous testwork.
The testwork was carried out with primary grinds between 100 and 160 microns. The
results suggest that the rougher flotation is not sensitive to the p80, and on this basis a
primary grind p80 of 180microns is proposed. This again will definitely require confirmation
and optimisation is the next round of testwork. The testwork indicates a relatively fine
regrind p80 is required, in the range 30-50 microns. A value of 45 microns has been
selected for this PEA. Again, further testwork to confirm this important parameter will be
necessary.
The testwork indicates three stages of cleaning is required. In this PEA a first stage of
cleaning using conventional cells is followed by secondary column flotation, and this
should achieve the desired concentrate grades. However a third cleaner stage can be
utilized by converting some of the scavenger flotation cells into cleaner cells. Once again,
further flotation testwork will be essential to confirm and optimise the cleaner circuit.
Based on the flotation tests, an overall recovery of 90 % Cu and 75 % Mo can be expected
Copper and molybdenum rougher recovery of 94 % and 89 % respectively can be
expected.
Copper and molybdenum cleaner recovery of 96 % and 95 % respectively can be
expected.
The results of the agitated leaching tests showed that the samples tested had a high
content of chalcopyrite (78 %) and a low acid soluble copper content (<10 %). These
samples generally resulted in low recoveries (<15 %).
The best results were obtained by bacterial leaching for samples with low chalcopyrite

111
content.
The best column leaching results showed copper recoveries of approximately 40 %. The
samples tested also contained high chalcopyrite content.
Further evaluation of the oxide mineral noted that the average grade of soluble copper is
approximately 0.051 % and that actual volume of true oxide material is low.
The majority of that domain previously logged as oxide contains a large proportion of
sulphide mineralisation and metallurgical test work previously completed indicated that the
actual leach recoveries were low.

112
14 MINERAL RESOURCE ESTIMATE
Los Andes Copper published a NI 43-101 compliant resource estimate in August 2008. This
section provides an updated mineral resource and also discusses the significant differences
between the historical resource and current resource estimate.
The resource estimate forms part of the Preliminary Economic Assessment on the Vizcachitas
Property which meets the requirements of a NI 43-101 Technical Report. Los Andes Copper has
requested that Coffey prepare an updated resource estimate and a report for the development of
a project that contemplates the exploitation and processing of the Vizcachitas Deposit that
satisfies the standards of a PEA report.
The Scope of work included:
Review and validation of geological database
Verification of geological 3-D Model
Exploration Data Analysis (Statistics, Compositing, Capping, Variography)
Grade Estimation and Validation
Categorization of Resources
14.1 Geological 3-D Model, and Domains
The lithology and mineral zone models have been interpreted from drill information through a
series of vertical cross sections oriented at an azimuth of 110 degrees and spaced at 100 m
intervals throughout the Property. This interpretation has been linked to a series of three-
dimensional wireframe solids.
The copper and molybdenum mineralization in the Vizcachitas deposit is interpreted to be the
result of a series of porphyry intrusions into an andesitic host rock. An initial diorite intrusion
covers a relatively large area of the deposit but appears to be responsible for very little of the
contained mineralization in the deposit. A second granodioritic intrusive phase occurs in a
relatively small area over the south-eastern part of the deposit. The most recent tonalitic phase
covers a large area of the deposit area and appears to be the main source of the copper and
molybdenum mineralization present in the deposit.

113
The geological 3-D Model is illustrated in Figure 14-1 the model codes are presented in Table
14-1.
Table 14-1: Vizcachitas Lithology Model Codes

Lithology Code Description
Overburden 101 Surface soil and gravels.
Andesite 102 Pre-mineral volcanics. Host Rock
Dacite Dykes 103 Post mineral dykes. Minor volume. Unmineralized.
Diorite 104 Oldest intrusive phase. Weak source of mineralization.
Granodiorite 105 Second intrusive phase. Moderate mineralizing event.
Tonalite 106 Third intrusive phase. Primary mineralizing event.
Diorite Dykes 107 Mainly post-mineral dykes. Weak to unmineralized.

114

Figure 14-1: Local geology 3-D view in Minesight Software-Plan 1930. (Lithological codes according to Table 14-1, Coffey,
June, 2013)
There appears to have been a very minor degree of near-surface remobilization of copper due to
acidic fluids created from the breakdown of pyrite in a reducing environment. These mechanisms
are well documented in relation to many porphyry copper deposits, often developing a high-
grade blanket of supergene enrichment which is overlain by a leached cap which is essentially
void of all contained metals.
There is evidence of supergene enrichment as well as minor, near-surface zones of leaching. In
the AMEC 2008 resource estimate the two zones were classified as Leached and Oxide. Review
of the thin section descriptions and metallurgical test work shows that there is a high percentage
of chalcopyrite within these zones. These zones have been reclassified as a Mixed Zone. The
Mixed Zone can contain varying amounts of copper oxide minerals, copper sulphide minerals or

115
enrichment copper minerals.
It should be noted that the supergene zone has been identified through the visual observation of
enrichment minerals such as chalcocite and covellite in drill core. The development of the
supergene zone is variable and, in many areas, is poorly developed. The mineral zone domains
(Minzone) are summarized in Table 14-2 and are shown in Figure 14-2.
Table 14-2: Vizcachitas Mineral Zone Codes

Minzone Domain Code Description
Overburden 301 Surface soil and gravels.
Mixed 303
Minor Leach zones combined with rocks
showing variable degrees of oxidized sulphides.
Supergene 304
Zones where enrichment mineralogy is present
and no evidence of oxidation is visible.
Hypogene 305 Hyponege sulphide mineralogy.

116

Figure 14-2: Mineral Zone view in Minesight Software-Plan 1930. (Codes according to Table 14-2, Coffey, June, 2013)

117
14.1.1 Available Data
The Vizcachitas deposit has been drilled by Placer Dome, GMC and Los Andes Copper since
1993. A total of 146 drill holes and 40,383.45 metres drilled. The Vizcachitas 3-D Model limits
are summarized in Table 14-3. Drill hole spacing over the deposit is between 80 to 100 m.
Table 14-3: Vizcachitas 3-D Model limits.

The drill results were used to prepare a 3-D geological interpretation and estimation of mineral
resources.
The standard procedure for drill core data recording is that the drill core is logged for lithology,
alteration, mineralization and structure with description of alteration minerals, ore minerals,
intensity, veinlets, faults, joints and contacts. Most of sample intervals were between 1 and 2 m.
14.1.2 Geological 3-D Model Verification
The 3-D geological model was checked to complete a validation/control which consisted of
encoding drill hole intervals with the solids and encoding the blocks. The block validation was
acceptable but approximately 40 uncoded intervals were recorded due to uncertainties at the
junction between solids. These intervals were coded manually. No significant discrepancies
existed between the geological 3-D model and the database and block models. Coffey believes
the verification to be accurate and suitable for mineral resource estimation.
14.2 Mineral Resource Estimate
14.2.1 Method for Estimate and Tools
The Vizcachitas Mineral Resource estimate was completed using Minesight
7.70-2 software.
The block model was constrained by the following: interpreted 3-D, solids, lithology and mineral
zone. Copper and molybdenum were estimated for each block using Ordinary Kriging (OK).
14.2.2 Specific Gravity
Specific gravity (SG) was measured on 584 sampled assay intervals included in the resource
estimation. Coffey has summarised all the measured SG values that were used for resource
estimation and this summary is displayed in Table 14-4.
Minimum Maximum
East 364,600 367,900
North 6,412,100 6,415,000
Elevation 1,400 3,200

118
The average specific gravity values calculated by Robert Sim in the 2008 AMEC Technical
Report were used in the current resource estimate.
Table 14-4: Bulk Density by Domain (AMEC, 2008)

14.2.3 Assay Statistics
A total of 24,254 assay intervals from 146 drill holes, were selected to define the Vizcachitas
deposit Mineral Resource estimate. Samples were grouped according to their interpreted
lithology and mineral zone. Sample statistics of the assayed information are shown in Figure
14-3 and Figure 14-4 for copper. The exploration data analysis was conducted by creating
probability and histogram plots of the data.

Domain
Density (t/m
3
)
Comments
Overburden 2.00 Based on 14 samples
LX/OX 2.54 All types of rocks included
Andesite 2.61 Rocks type restricted to Supergene and Primary domains
Dacite 2.49 Rocks type restricted to Supergene and Primary domains
Diorite 2.59 Rocks type restricted to Supergene and Primary domains
Granodiorite 2.59 Rocks type restricted to Supergene and Primary domains
Tonalite 2.56 Rocks type restricted to Supergene and Primary domains
Diorite Dykes 2.53 Rocks type restricted to Supergene and Primary domains

119

Figure 14-3: Boxplot of Raw Copper Assay Values by Lithology

120

Figure 14-4: Boxplot of Raw Copper Assay Values by Mineral Zone

121
14.2.4 Composites Study
Analysis was completed to find the best composite length. This was completed by running a
statistical analysis on the length of the raw data (Figure 14-5) and from this analysis the
interpretation indicated that there was a 98 % certainty that the principal length was 2 m.

122
Figure 14-5: Histogram and Cumulative Plot of Length of Raw Data

Based on this analysis, assay samples were composited into 2 metre down hole lengths by
lithology. The start of the composite is the collar of the drill hole. Intervals with missing assays
were ignored. Values below assay detection limits were set to half of that detection limit.
Geological coding was assigned based on the location of the composite centroid relative to the
geological 3-D model.
14.2.5 Exploratory Data Analysis
An exploratory statistical analysis of 2 metre composite sample data was completed to
characterize the domains used for grade interpolation (boxplot, histograms, cumulative
frequency plots and contact). The purpose of this data analysis was to determine if it was
necessary to modify the domains previously used.
In general, Exploratory Data Analysis (EDA) is completed on composite-sized volumes that are
nominally of equal length. The variance of a distribution is inversely proportional to the volume of
the sample used and use of unequal length composites can distort the frequency distributions
and make variography very noisy.
The domains were created through a combination of the lithology model and mineral zones
model. Table 14-5 presents all domains evaluated.
Table 14-5: Domains used in Resource Estimate

The domains used are as follows:
1. Overburden Domain
2. Mixed Domain
Mixed Supergene Hypogene
Overburden
Andesite
Diorite
Granodiorite 5
Tonalite 6
Dio Dikes
Dac Dikes
L
i
t
h
o
l
o
g
y
1
2 3
4
7

123
3. Supergene Domain
4. Andesite and Diorite Hypogene Domain
5. Granodiorite Hypogene Domain
6. Tonalite Hypogene Domain
7. Diorite and Dacite Dikes Hypogene Domain
Histograms
Figure 14-6 and Figure 14-7 illustrate the histograms and cumulative frequency plots for
uncapped 2 metre composite data from all data used for copper and molybdenum. The box
accompanying the histogram contains basic statistics, with the following abbreviations being
used:
N = number of samples
m = mean
2
= variance
/m = coefficient of variation
min = minimum
q0.25 = 25th percentile = 1st quartile
q0.50 = 50th percentile = median
q0.75 = 75th percentile = 3rd quartile
max = maximum
Below the histogram is a log-probability plot. The cumulative frequency is plotted on the x-axis
and the grade is plotted on the y-axis. If the points form a straight line, the distribution is
lognormal (logarithms of the data give a normal distribution). The slope of the line is proportional
to the coefficient of variation.

124

Figure 14-6: Uncapped 2 m Composited Copper (ppm) All Data Statistics

125

Figure 14-7: Uncapped 2 m Composited Molybdenum (ppm) All Data Statistics

126
Boxplots
Box plots were prepared for all elements. Figure 14-8 and Figure 14-9 show the uncapped
composited copper and molybdenum grade for the mixed and supergene mineral zones and for
each lithology within the hypogene mineral zone. Figure 14-10 and Figure 14-11 show the same
data by mineral zone, and Figure 14-12 and Figure 14-13 by estimation domains.
The box shows that portion of the sample data that falls between the 25
th
and the 75
th

percentiles. In other words, the box captures half of the data that falls in the middle of the
distribution. The horizontal line that appears in the box represents the median of the data or that
value where half of the assays are greater and the remaining half of the assays are less than
this median value. The mean or average of the data is shown with a dot. The vertical lines that
extend away from the box reach the minimum toward the bottom of the plot and the maximum
value toward the top.

127

128
Figure 14-8: Boxplot of Composited Copper Data by Lithology

129
Figure 14-9: Boxplot of Composited Molybdenum Data by Lithology

130
Figure 14-10: Boxplot of Composited Copper Data by Mineral Zone

131
Figure 14-11: Boxplot of Composited Molybdenum Data by Mineral Zone

132
Figure 14-12: Boxplot of Composited Copper Data by Domain

Figure 14-13: Boxplot of Composited Molybdenum Data by Domain

133
Contact Plot Analysis
A contact plot is a type of comparison diagram where the element behaviour close to
contact/boundary between different domains can be illustrated. The behaviour type can be Soft
Boundaries (no contact), Hard Boundaries (strong difference in the contact) and Firm
Boundaries (gradual changes in the contact). The type of contact between domains is shown in
Table 14-6.
Table 14-6: Type of Contacts between Domains

All Contact Plots by domains for each element were carried out. The contact plot examples are
shown in Figure 14-14 to Figure 14-17.

Domain 1 2 3 4 5 6 7
1
2 Hard
3 Hard Soft
4 Hard Hard Hard
5 Hard Hard Hard Soft
6 Hard Hard Hard Hard Hard
7 Hard Hard Hard Hard Hard Hard
Number
1
2
3
4
5
6
7
Granodiorite Hypogene Domain
Tonalite Hypogene Domain
Diorite and Dacite Dikes Hypogene Domain
Domain Name
Overburden Domain
Mixed Domain
Supergene Domain
Andesite and diorite Hypogene Domain

134

135
Figure 14-14: Contact Plot of Copper in Mixed and Supergene Domains

136
Figure 14-15: Contact Plot of Copper in Andesite and Diorite Domains

137
Figure 14-16: Contact Plot of Copper in Andesite and Diorite Dyke Domains

138
Figure 14-17: Contact Plot of Molybdenum in Mixed and Supergene Domains
14.2.6 High Grade Capping
A review of all assay values for each domain for the resource estimation included the
preparation of histograms and cumulative probability charts. The decision to cap grades during
estimation was based principally on the interpretation of cumulative frequency plots (CFP) as
high grade outliers can lead to overestimation of a resource. Table 14-7 and Table 14-8 show
the different capped values for each element and domain.
Table 14-7: Capped Value for Copper by Domain.

Table 14-8: Capped Value for Molybdenum by Domain.

14.2.7 Spatial Analysis - Variography
Variograms/Correlograms were calculated on capped composited data using Sage 2001
software. The estimation results are very sensitive to the variogram parameters, particularly the
range and nugget effect. Care was taken to model the short-range structures and accurately fit
the nugget effect. The search rotation (Minesight/Meds Rotation axis Z Left, axis X right and
axis Y Left) conforms to the interpreted mineralization trends in each domain. Figure 14-18
illustrates an example of the fitted variogram in the 3 principal axes or ranges.
Domain Code
Cum. Plot
(ppm)
Hist. Plot
(ppm)
Capping
(ppm)
N of Capped
Samples
Overburden 1 5,000 5,000 5,000 1
Mixed 2 20,000 15,000 20,000 3
Supergene 3 20,000 20,000 20,000 3
Andesite_diorite 4 15,000 15,000 15,000 2
Granodiorite 5 10,000 10,000 10,000 2
Tonalite 6 10,000 10,000 10,000 4
Dykes 7 10,000 10,000 10,000 2
Domain Code
Cum. Plot
(ppm)
Hist. Plot
(ppm)
Capping
(ppm)
N of Capped
Samples
Overburden 1 500 400 400 3
Mixed 2 1,000 1,000 1,000 1
Supergene 3 1,800 1,800 1,800 4
Andesite_diorite 4 2,500 2,500 2,500 3
Granodiorite 5 1,000 1,000 1,000 2
Tonalite 6 1,500 1,500 1,500 2
Dykes 7 2,000 2,000 2,000 2

139

140

Figure 14-18: Copper Variogram/Correlogram in And_dio Estimation Domain (X, Y, Z axis)
Table 14-9 and Table 14-10 show the different Variography Parameters for each element and
domain.
Table 14-9: Variography Parameters for Copper by Domain.

Mixed Supergene And_dio Granodio Tonalite Dykes
Nugget 0.12 0.1 0.1 0.14 0.1 0.15
C1 0.25 0.4 0.47 0.86 0.9 0.85
Var type 1 SPH SPH SPH SPH SPH SPH
Range1 Y 50 100 60 180 360 60
Range1 X 20 100 100 350 120 120
Range1 Z 35 25 250 40 180 350
Rot1 Z-L -22 40 40 7 -2 -9
Rot1 X-R -2 81 -10 37 -23 19
Rot1 Y-L 91 -31 -17 39 -7 -47
C2 0.63 0.5 0.43 0 0 0
Range2 Y 500 200 350 180 360 60
Range2 X 100 500 800 350 120 120
Range2 Z 70 100 500 40 180 350
Rot2 Z-L -22 40 40 7 -2 -9
Rot2 X-R -2 81 -10 37 -23 19
Rot2 Y-L 91 -31 -17 39 -7 -47

141

Table 14-10: Variography Parameters for Molybdenum by Domain.

14.2.8 Resource Block Model
The resource block model was created using Minesight software v.7.70-2 with an origin at
UTM WGS 84 coordinates of 364,600 m east, 6,412,100 m north, and 1,400 m elevation above
sea level. Block dimensions of 20 m by 20 m by 10 m were selected based on average width of
the resource and consideration of the smallest mining unit. Block model geometry and
parameters are provided in Table 14-11.
Table 14-11: Block Model Limits and Size

Drill hole spacing in the Property is approximately 80 100 m between collars.
14.2.9 Interpolation Plan
The Vizcachitas resource estimation model interpolation was completed using Ordinary Kriging
(OK) and Nearest Neighbor (NN) estimation methods for validation. The OK and NN estimations
Nugget 0.3 0.35 0.45 0.4 0.4 0.33
C1 0.7 0.68 0.22 0.6 0.6 0.67
Range1 Y 150 80 25 65 400 60
Range1 X 400 150 20 200 90 100
Range1 Z 60 300 65 30 170 250
Rot1 Z-L -83 -19 -12 -38 -4 -56
Rot1 X-R 29 -33 16 -11 -25 -12
Rot1 Y-L 32 -7 -9 13 -41 5
C2 0 0 0.33 0 0 0
Range2 Y 150 80 350 65 400 60
Range2 X 400 150 150 200 90 100
Range2 Z 60 300 450 30 170 250
Rot2 Z-L -83 -19 -12 -38 -4 -56
Rot2 X-R 29 -33 16 -11 -25 -12
Rot2 Y-L 32 -7 -9 13 -41 5
Minumum Maximum
Block Size
(m)
# Blocks
East 364,600 367,900 20 165
North 6,412,100 6,415,000 20 145
Elevation 1,400 3,200 10 180

142
were completed in two iterations with the search parameters set by domain. The first iteration is
designed to estimate a block grade where there is a minimum of two and up to a maximum of
twenty five composites found with a limit of six composites per drill hole based on a 3D search
radius equal to 400 metres. The second iteration overwrites the first and is dependent on the
domains as shown on Table 14-12 and Table 14-13 where search parameters, minimum and
maximum composites, outliers and maximum outlier distance for each element are shown.
Table 14-12: Search Parameters for Copper by Domain

Table 14-13: Search Parameters for Molybdenum by Domain

14.2.10 Block Model Validation
The OK models were checked for global bias, local bias/swath plot, and contact plot for the level
of smoothing incorporated in the models, and changes of support. The maximum number of
samples used to krige a block was modified for wider spaced grids in order to minimize
smoothing.
Min Comp 3 3 3 3 3 2
Max Comp 30 25 25 25 25 25
Max by DH 8 7 7 7 6 7
Rot1 Z-L -22 40 40 7 -2 -9
Rot1 X-R -2 81 -10 37 -23 19
Rot1 Y-L 91 -31 -17 39 -7 -47
Range1 Y 400 200 300 180 320 120
Range1 X 200 350 700 300 220 160
Range1 Z 200 150 450 150 250 300
Outliers 1.5 1.5
Dist outlier 40 40
Min Comp 3 3 3 3 3 2
Max Comp 25 25 25 25 25 25
Max by DH 6 6 6 6 6 6
Rot1 Z-L -83 -19 -12 -38 -4 -56
Rot1 X-R 29 -33 16 -11 -25 -12
Rot1 Y-L 32 -7 -9 13 -41 5
Range1 Y 150 80 300 80 350 100
Range1 X 350 120 150 180 100 120
Range1 Z 80 250 350 50 150 200
Outliers 0.075 0.075 0.075
Dist outlier 40 40 40

143
These validation tools were applied using different sets of models, generated for sensitivity
analysis purposes. From these validation results one model was selected as the final valid
model for each individual domain.
The Vizcachitas resource estimation model was validated by the following methods:
Comparison of the global mean grades based on OK estimation against NN estimation.
Inspection of the OK block model grades in plan and section views in comparison to the
drill hole composite grades.
14.2.11 Global Bias Comparison
The models were checked for global bias by comparing a nearest neighbour model to the
models estimated by Kriging. A difference greater than 5 % is considered high. Table 14-14 and
Table 14-15 list global bias checks for all elements and domains. There are no signs of global
bias in any of the grid intervals investigated.
Table 14-14: Comparison between Kriged and Nearest Neighbour Copper Model Statistics

Table 14-15: Comparison between Kriged and Nearest Neighbour Molybdenum Model Statistics

Domain Code
Sample
(N)
OK Mean
(%)
NN Mean
(%)
(OK-NN)/OK
(%)
Overburden 1
Mixed 2 20,613 0.242 0.232 4.38%
Supergene 3 26,150 0.287 0.275 4.15%
Andesite_diorite 4 712,900 0.142 0.136 3.75%
Granodiorite 5 14,171 0.294 0.283 3.71%
Tonalite 6 65,274 0.275 0.284 -3.20%
Dykes 7 4,251 0.141 0.134 4.98%
Domain Code
Sample
(N)
OK Mean
(%)
NN Mean
(%)
(OK-NN)/OK
(%)
Overburden 1
Mixed 2 11,818 0.0072 0.0071 1.39%
Supergene 3 21,000 0.0066 0.0069 -4.55%
Andesite_diorite 4 138,784 0.0061 0.0058 4.92%
Granodiorite 5 7,810 0.009 0.0085 5.56%
Tonalite 6 38,061 0.0124 0.013 -4.84%
Dykes 7 1,948 0.0107 0.0112 -4.67%

144
14.2.12 Visual Comparison
A visual inspection of plans and sections confirmed that the block model conforms with the drill
hole composites used in the estimation. A copper example screen-capture plot for mid bench
1930 is presented in Figure 14-19.
Figure 14-20 shows a section looking approximately E-W, and Figure 14-21shows a section
looking approximately N-S. These plots illustrate the spatial distribution of copper grades and the
good correlation between estimated block grades and composites used to estimate the blocks.
A molybdenum example screen-capture plot for mid bench 1930 is presented in Figure 14-22.
These plots illustrate the spatial distribution of molybdenum grades and the good correlation
between estimated block grades and composites used to estimate the blocks.

145

Figure 14-19: Mid Bench 1930 Screen-Capture Plot of Copper % (source: Coffey, June, 2013)

146

Figure 14-20: E-W Screen-Capture Plot (N-6413120) of Copper % (source: Coffey, June, 2013)

147

Figure 14-21: N-S Screen-Capture Plot (E-365960) of Copper % (source: Coffey, June, 2013)

148

149
Figure 14-22: Mid Bench 1930 Screen-Capture Plot of Molybdenum % (source: Coffey, June, 2013)
14.2.13 Mineral Resource Categorization
Mineral resources have been classified according to the CIM Definition Standards on Mineral
Resources and Mineral Reserves, as incorporated in the National Instrument NI 43-101.
Two criteria have been combined for mineral resource classification:
Reliability of grade and tonnage that a drill pattern or distance provides
Definition of the search distance to provide the reliability required, complementing the
criteria with the minimum number of drill holes within that distance
Tonnage and grade reliability can be defined as follows:
For indicated resources a production of one year volume size is considered targeting an
accuracy of 10 - 15 % with 90 % confidence.
Geostatistical methodology provides a variety of tools to establish confidence levels for resource
estimates. The simplest of these methods involves evaluation of estimate variances for large
blocks (quarterly or annual production equivalent). This method provides an estimate of global
confidence or confidence over large areas and is not dependent on local data. Using this
method, 90 % confidence limits are calculated using ordinary Kriging Variances (2OK) and the
coefficient of variation of the composites (CV) (Davis, 1997). The following formulae illustrate the
calculation for measured and indicated resources:
CL (90 % confidence limits) = +- 1.645 x relative, Where relative =
2
relative (Annually or Quarterly Variance)
2
relative (Annually) =
2
relative (monthly) / 12 (For Indicated Mineral Resources)
2
relative (monthly) =
2
OK (monthly) x CV
2
(Ordinary Kriging Variance and Coefficients Variation)
In order to find the monthly ordinary Kriging variances Coffey used different drill hole spacing
and composited data variography in a monthly production block:
Monthly Production Block = 320 x 320 x 20 m = 2,048,000 m
3
x 2.4 t/m
3
(average density) =
4,915,200 Tons.
Table 14-16, Table 14-17 and Table 14-18 show the comparison between different drill hole
spacing, monthly ordinary Kriging variances (OK Var) and annual confidence limits (CL
Annually).

150
Table 14-16: Comparison between different drill hole spacing, monthly Kriging variances and confidence limits for Mixed
Domain

Supergene Domain

Table 14-18: Comparison between different drill hole spacing, monthly Kriging variances and confidence limits for And_Dio
Domain

From the above results, Coffey has selected drill hole spacing of 200 metres x 200 metres to
meet the required reliability criteria accuracy within a range of 10-15 % at a 90 % confidence
limit.
Complementing the drill hole spacing distance defined, a second criterion was introduced for
resource class categorization:
Indicated Mineral Resources blocks (any domain) were defined by having a minimum of 2
drill holes at distances averaging less than 200 metres
Confidence
Limit
Resource
Annual Category
140 x 140 0.0473 0.8259 8.5% Indicated
160 x 160 0.0567 0.8259 9.3% Indicated
180 x 180 0.0639 0.8259 9.9% Indicated
200 x 200 0.0664 0.8259 10.1% Indicated
Drillhole Spacing OK Var CV Samples
Confidence
Limit
Resource
Annual Category
140 x 140 0.0569 0.7798 8.83% Indicated
160 x 160 0.0738 0.7798 10.06% Indicated
180 x 180 0.0869 0.7798 10.92% Indicated
200 x 200 0.0931 0.7798 11.30% Indicated
Confidence
Limit
Resource
Annual Category
140 x 140 0.0453 0.7375 7.45% Indicated
160 x 160 0.0616 0.7375 8.69% Indicated
180 x 180 0.0774 0.7375 9.74% Indicated
200 x 200 0.0884 0.7375 10.41% Indicated

151
Inferred Mineral Resources blocks were defined by having a minimum of 1 drill hole at
distances averaging less than 400 metres
The 400 metres maximum distance between drill hole collars is also in line with copper
variogram ranges for the main domains.
The location of the Inferred and Indicated Resources blocks for all domains show a reasonable
continuity of the classification as illustrated in Figure 14-23, Figure 14-24 and Figure 14-25.

152

Figure 14-23: Plan View at 1930 Elevation Showing the Distribution of Indicated (green) and Inferred (yellow) Mineral
Resource Blocks (source, Coffey, June, 2013)

153

Figure 14-24: E-W Section View (N-6413120) Showing the Distribution of Indicated (green) and Inferred (yellow) Mineral Resource Blocks (source: Coffey, June, 2013)

154

Figure 14-25: N-S Section View (E-365960) Showing the Distribution of Indicated (green)and Inferred (yellow) Mineral Resource Blocks (source: Coffey, June, 2013)

155
14.2.14 Mineral Resource
In order to ensure that the reported resource has reasonable prospects for economic extraction,
the resource estimated by ordinary Kriging method is limited within a pit shell generated about
copper equivalent grades in blocks classified in the indicated and inferred categories at a copper
price of 3.00 USD/lb. This test indicates that some of the deeper mineralization may not be
economic due to increased strip ratios resulting from local topographic configuration.
The pit shell was generated using Whittle with the following technical and economic
parameters:
Mine Cost: 2.25 USD/t
Process Cost: 6.94 USD/t
Copper Price: 3.00 USD/lb.
Molybdenum Price: 13.6 USD/lb.
Conc. Copper Sales Cost: 0.5537 USD/lb.
Conc. Molybdenum Sales Cost: 1.60 USD/lb.
Recovery Copper: 90 %
Recovery Molybdenum: 60 %
Slope Angles: 42 - 47 (Golder 1999)
The resultant delimitation of the resources is shown on plan and section views in Figure 14-26
and Figure 14-27.

156

Figure 14-26: Pit shell with Copper Grades for throughput 176 ktpd (Plan View Z=1950) source: Coffey, June, 2013

157

Figure 14-27: Pit shell with Copper Grades for throughput 176 ktpd (Cross Cut N=6.413.700) (source: Coffey, June, 2013)

158
Mineral resources are reported at 0.30 % copper equivalent cut-off under prevailing conditions.
At 0.3 % Cu Eq cut-off the Indicated Resources are 1,038 Mt @ 0.434 % Cu Eq, 0.373 % Cu
and 0.012 % Mo; and Inferred Resources are 318 Mt @ 0.405 % Cu Eq, 0.345 % Cu and 0.013
% Mo.
The Vizcachitas Mineral Resource using multiple Cu Eq cut-off grades is presented in Table
14-19.
Table 14-19: Mineral Resource for Cu Eq%
(1)

(1)
Copper equivalent grade (Cu Eq) has been calculated using the following expression:
Cu Eq (%) = CuT (%) + 4.95 x Mo (%), Using the metal prices: $ 2.75 / lb. Cu and 13.6 / lb. Mo.
A Tonnage - Grade Curve for Indicated and Inferred Resources is shown in Figure 14-28.
INDICATED
0.20 1,317 0.396 0.341 0.011 9,913 318
0.25 1,191 0.414 0.356 0.012 9,353 305
0.30 1,038 0.434 0.373 0.012 8,539 281
0.35 824 0.462 0.396 0.013 7,201 240
0.40 566 0.501 0.431 0.014 5,374 179
0.45 368 0.543 0.467 0.015 3,788 125
0.50 244 0.588 0.509 0.016 2,515 79
INFERRED
0.20 521 0.343 0.296 0.010 3,407 111
0.25 404 0.376 0.322 0.011 2,873 101
0.30 318 0.405 0.345 0.013 2,415 88
0.35 212 0.443 0.372 0.015 1,734 70
0.40 130 0.488 0.402 0.018 1,152 51
0.45 76 0.533 0.428 0.022 714 36
0.50 40 0.584 0.466 0.024 415 22

159

Figure 14-28: Tonnage-Cu Eq Grade Curves

0.20 0.25 0.30 0.35 0.40 0.45 0.50
Cu Eq 0.396 0.414 0.434 0.462 0.501 0.543 0.588
Tonnage 1,317 1,191 1,038 824 566 368 224
0
200
400
600
800
1,000
1,200
1,400
0.000
0.100
0.200
0.300
0.400
0.500
0.600
0.700
T
o
n
n
a
g
e

(
M
t
)
C
u

E
q

(
%
)
Tonnage (Mt)- Cu Eq Grade Curve(%)
Indicated Resources Ratio=4.95
0.20 0.25 0.30 0.35 0.40 0.45 0.50
Cu Eq 0.396 0.414 0.434 0.462 0.501 0.543 0.588
Tonnage 521 404 318 212 130 76 40
0
100
200
300
400
500
600
0.000
0.100
0.200
0.300
0.400
0.500
0.600
0.700
T
o
n
n
a
g
e

(
M
t
)
C
u

E
q

(
%
)
Tonnage (Mt)- Cu Eq Grade Curve(%)
Inferred Resources Ratio=4.95

160
14.2.15 Comparison with Previous Resource Estimate
The most recent resource estimate prior to this one is detailed in the Technical Report titled
Mineral Resource of the Vizcachitas Project, National Instrument 43-101 Technical Report,
Effective Date June 9, 2008 (AMEC, 2008).
Due to changes in the calculation of the copper equivalent and the confining pit, it is not possible
to make a direct comparison between the two resources but it is useful to review the differences
in grade, tonnage and classification. This is presented in Table 14-20.
Table 14-20: Comparison between AMEC 2008 and Coffey 2013 Resource

(1) The AMEC 2008 resource Cu Eq % = Cu % + (Mo % * 6.67). The Coffey 2013 resource Cu Eq % =Cu % + (Mo % * 4.95).
(2) The AMEC 2008 resource was confined within pit generated with Cu Eq grades in blocks at a $US 2.0/lb. copper price. The
Coffey resource was confined within a pit generated using multiple parameters as defined in Chapter 14.2.12.
The 2008 resource estimate was calculated using a total of 130 drill holes with a total length of
35,255 metres. The Coffey 2013 resource estimate included a further 16 drill holes and 5,128
metres drilling bringing the total number of completed drill holes to 146 with a total length 40,383
metres. This extra drilling is mainly in the south quadrant of the deposit extending the mineral
resource to the south. There was additional deep drilling in the center of the deposit which also
extended the resource at depth. Figure 14-29 illustrates this additional drilling. The additional
drilling has extended the resource to the south and has converted further Inferred Resources to
Indicated category.
Report
Cut-off
CuEq % (1)
Tonnage
(Mt) (2)
Cu Grade
(%)
Mo Grade
(%)
CuEq
Grade (%)
Cu (Mlb) Mo (Mlb)
Tonnage
(Mt)
Cu Grade
(%)
Mo Grade
(%)
CuEq
Grade (%)
Cu (Mlb) Mo (Mlb)
Indicated
0,20 597 0,36 0,010 0,43 4.738 132 1.317 0,34 0,011 0,40 9.913 318
0,25 563 0,37 0,011 0,44 4.592 137 1.191 0,36 0,012 0,41 9.353 305
0,30 515 0,39 0,011 0,46 4.428 125 1.038 0,37 0,012 0,43 8.539 281
0,35 442 0,41 0,012 0,48 3.995 117 824 0,40 0,013 0,46 7.201 240
0,40 351 0,43 0,012 0,51 3.327 93 566 0,43 0,014 0,50 5.374 179
0,45 252 0,47 0,013 0,55 2.611 72 368 0,47 0,015 0,54 3.788 125
0,50 160 0,51 0,013 0,6 1.799 46 244 0,51 0,016 0,59 2.515 79
Inferred
0,20 798 0,3 0,010 0,36 5.278 176 521 0,30 0,010 0,34 3.407 111
0,25 685 0,32 0,011 0,39 4.833 166 404 0,32 0,011 0,38 2.873 101
0,30 572 0,34 0,012 0,41 4.288 151 318 0,35 0,013 0,41 2.415 88
0,35 420 0,36 0,013 0,44 3.333 120 212 0,37 0,015 0,44 1.734 70
0,40 280 0,39 0,013 0,48 2.407 80 130 0,40 0,018 0,49 1.152 51
0,45 176 0,43 0,014 0,52 1.668 54 76 0,43 0,022 0,53 714 36
0,50 92 0,46 0,016 0,57 933 32 40 0,47 0,024 0,58 415 22
AMEC 2008 Sulphide Resource Coffey 2013 Resource

161

Figure 14-29: Additional Drilling to the South of the Vizcachitas Deposit
The 2008 resource estimate divided the resource into sulphide and oxide zones. The
metallurgical review carried out as part of this Report indicates that the Oxide and Leached
domains contain significant copper sulphide minerals and have been reclassified as Mixed.
These mixed resources are now included within the main resource estimate as they will be
processed in the same flotation plant as the supergene and primary material. The AMEC 2008

162
resource estimate defined 38 Mt Indicated and 8 Mt Inferred resources at a cut-off of 0.3 % Cu
within the Oxide domain, this is illustrated in Table 14-21.
The calculation used for copper equivalent in the 2008 and 2013 resource estimate has changed
due to relative changes in copper and molybdenum prices. The AMEC 2008 resource used:
Cu Eq % = Cu % + (Mo % * 6.67). Metal prices: $ 1.50 /lb. Cu, $ 10.00 /lb. Mo.
The Coffey 2013 resource has used:
Cu Eq % =Cu % + (Mo % * 4.95). Metal prices: $ 2.75 /lb. Cu, $ 13.6 /lb. Mo.
The average molybdenum grade is 0.012 % Mo. This grade is equal to 0.080 Cu Eq % using a
ratio of 6.67 and 0.059 Cu Eq % using a ratio of 4.95.
The decrease in the Cu/Mo price ratio of 1:6.67 to 1:4.95 has the effect of:
Slightly reducing the tonnage as less blocks are above the copper equivalent cut-off
Slightly reducing the copper equivalent grade as the weighting of molybdenum is reduced
Slightly increasing the copper grade as blocks with a higher copper grade are included
above the copper equivalent cut-off
The Indicated and Inferred copper and molybdenum grades are similar between the two
resource estimates. The Indicated copper grade has reduced from 0.39 % to 0.37 % with a 0.3
% Cu Eq cut-off while the Inferred copper grades are the same. This is due to additional lower
copper grade tonnage in the area of the extra drilling to the south of the Property. The
molybdenum grades have increased slightly from 0.011 % to 0.012 % for the Indicated
Resources and from 0.012 % to 0.013 % for Inferred Resources. This is due to better
molybdenum grades in the intrusive rock in the southern part of the Property.
The geostatistical analysis as described in this chapter has shown that the continuity for the
copper and molybdenum composites is high and the variography indicates that the range for
each element is large. This is apparent when running estimation variance evaluations for large
blocks and indicates that the drill hole spacing that satisfies definition of annual production with a
relative accuracy of 10 % with 90 % confidence, i.e. for Indicated Resources, is 200 metres by
200 metres. This change in support results in the Indicated tonnage increasing from 515 Mt in
the 2008 estimate to 1067 Mt. As a percentage of the total tonnage the Indicated Resource
tonnage has increased from 47 % in 2008 to 76 % in 2013.

163
The AMEC 2008 estimate reported 515 Mt of Indicated Resources for a 0.30 % Cu Eq Cut-off
grade while Coffey indicates 1,081 Mt of the same category.
An analysis of the criteria used for each estimate indicates the following:
2008 Criteria
Reliability for annual production set at 15 % at 90 % confidence (90 ktpd
production) which resulted in 175 metres drill spacing
Blocks estimated with a minimum of 3 drill holes within a maximum average distance
of 100 metres are classified as Indicated
Blocks which do not meet the criteria for Indicated Resources but are within a
maximum distance of 200 metres from a drill hole are classified as Inferred
2013 Criteria
Reliability for annual production set at 10 15 % at 90 % confidence resulted in
200 metre drill collar spacing
Indicated Mineral Resources blocks (any domain) defined by having a minimum 2
drill holes at distances averaging less than 200 metres
Inferred Mineral Resources blocks will be defined by having a minimum of 1 drill hole
at distances averaging less than 400 metres
The criteria used for categorization is the reason for the difference between the 2008
and 2013 resource classification
While both studies arrived at a similar distance based on the reliability approach, they differ
considerably in the second criteria; the 2008 resource estimate reduced the 175 metres drill
collar spacing derived to 100 metres with 3 drill holes within that distance while Coffey retained
the reliability based distance that defined the category adding the need to have 2 drill holes.
Common industry practice uses 3 drill holes to define a Measured Resource.
Regarding Inferred Resources; the 2008 resource estimate study restricted the drill hole spacing
distance to 200 metres, almost the same as that defined by the reliability approach to define
Indicated Resources.

164
Coffey opted to double the indicated reliability defined distance, in alignment with variogram
ranges, a minimum of 1 drill hole within the distance defined, this again is common industry
practice for Inferred Resource estimation.
Table 14-21: AMEC 2008 Oxide Resources

14.3 Conclusions
The data base and geological models were found to be in good order
The database (assay and geological data) has been validated and is of sufficient quality to
support this Mineral Resource estimate. The block model has been validated and is of
sufficient quality to support the Mineral Resource estimate
The Mineral Resource estimates are in line with good industry practice

Cut-off Cu
%
Tonnage
(Mt)
Cu Grade
(%)
Mo Grade
(%)
Cu (Mlb) Mo (Mlb)
Indicated
0.10 69 0.33 0.009 502 14
0.15 63 0.35 0.010 486 14
0.20 55 0.38 0.010 461 12
0.25 47 0.4 0.010 414 10
0.30 38 0.44 0.010 369 8
0.35 29 0.47 0.010 300 6
0.40 21 0.51 0.010 236 5
Inferred
0.10 67 0.21 0.005 310 7
0.15 51 0.24 0.005 270 6
0.20 33 0.28 0.007 204 5
0.25 22 0.31 0.007 150 3
0.30 8 0.37 0.006 65 1
0.35 5 0.42 0.007 46 1
0.40 3 0.46 0.008 30 1

165
15 MINERAL RESERVES ESTIMATE
The Project has no mineral reserves; all mineralization is considered as resources.

166
16 MINING METHODS
Initial trade off studies discarded an underground option as no adequate high grade continuous
lenses were found in the deposit. Given the size, continuity of mineralization and copper grades,
outcroppings and near surface presentation, the Vizcachitas deposit is amenable to conventional
open pit mining methods.
The mine is scheduled to work 360 d/yr. Each day will consist of three 8-hour shifts. The mining
operations will include; drilling, blasting, loading and hauling of mineralised material and waste;
crushing, conveying and spreading of waste, grade control and equipment maintenance.
For this Report, a number of treatment capacities were tested to understand the value map of
the deposit for future definitions. The treatment capacities ranged broadly from 16ktpd to
176ktpd, however, whilst all options were evaluated equally and all of those options considered
are noted in this section, only those options which provided the highest NPVs are presented in
the Report. A range of options were studied to determine whether the Project would support
lower throughput and lower initial capital investment.
Employing the block model described in Chapter 14, Whittle economic pit shells were
developed to determine the potentially economic pit limits for each treatment capacity.
For this PEA two options were studied, and within these options additional cases considering
different throughput capacities and growth possibilities were evaluated as follows:
Option 1: Studied in order to reach maximum throughput capacity. This option includes
five cases as follows:
Case 1.1: Throughput of 32 ktpd.
Case 1.4: Start with a throughput of 32 ktpd, and with a later expansion after 6 years
of operation, reaches a final throughput of 88 ktpd.
Option 2: Studied in order to start with minimum investment. This option includes three
cases which are as follows:

167
Figure 16-1 and Figure 16-2 show pit shell for cases to 16 ktpd and 176 ktpd respectively.

Figure 16-1: Pit Outlines for each Option 16 ktpd (source: Coffey, June, 2013)

168

Figure 16-2: Pit Outline Option 176 ktpd (source: Coffey, June, 2013)
Optimized mine plans were then defined for each case presented above, considering a Whittle
optimization base with the following practical aspects incorporated:
Up to 18 months of pre-production stripping work is considered to allow plant treatment in
the second year of activity. Full plant capacity to be reached from the 3
rd
year onwards
A maximum annual vertical advance rate of 15 benches per annum initially to liberate
mineral reducing to a maximum of 10 in the later periods of mine life
Maintaining a minimum of two active mining phases at all times. The initial Phase 1 is
aimed at liberating one year of production. Thereafter the criteria is to mine a constant
volume of material to stabilize the mining fleet
Minimum phase width ranging from 60 metres to 120 metres, adequate to accommodate
the main mining equipment

169
To select the best possible mine plan, block value criteria was used rather than cut-off grades,
considering that each block has copper and molybdenum content. Block value was calculated
using both these metal contents and the mining, process and selling costs and process
recovery.
A description of the common design aspects of all options considered is presented in the
following sections and the individual results for each of the selected options are summarised by
a mine plan and capital and operating cost estimates.
16.1 Bench Height
Based on the resource block model size which defined 20 m x 20 m x 10 m blocks, the bench
height was fixed at 10 m for all options. This simplified the mining method at this stage of project
development. Seven sectors were identified as having distinct geotechnical characteristics
based on the study: Site Technical Evaluation Report Vizcachitas Copper/Molybdenum Project
by Golder Associates in January 1999. These are illustrated in Figure 16-3.

170
Figure 16-3: Mine Sectors considered by Geotechnical Behaviour
Upper and lower sections take account of a fractured zone located between 0 to 260 m depth,
below which stable massive rock is found. For the purpose of this Report the inter-ramp angle
and the berm width recommended by Golder were used. The bench face angle is the result of
the inter-ramp angle and the berm width. The parameters are shown in Table 16-1.
Table 16-1: Geometrical Parameters by Sector

16.2 Waste Dump Design Parameters
Waste dump design followed Chilean regulatory recommendations and standard practice. The
following characteristics guided the design:
Table 16-2: Geometrical Parameters for Waste Dumps

For most of the options one platform located to the north of the pit was sufficient to
accommodate the waste, however for the large tonnage options two sites were required. The
waste dumps selected are illustrated in Figure 16-4. In the case of the 176 ktpd schedule the
plan for dump fill is shown in Table 16-3.
Inter-ramp Bench face
angle () angle ()
1 East 47 7 77
2 Lower North West 49 7 80
3 Upper North West 42 7 68
4 Lower South East 45 7 73
5 Upper South East 40 7 64
6 Lower South West 47 7 77
7 Upper South West 42 7 68
Sector Location
Berm width
(m)
Face Berm Overall
angle () width (m) angle ()
37 200 100 29
Platform
height (m)

171

Figure 16-4: Location of Waste Dumps (source: Coffey June, 2013)

172
Table 16-3: Dump Plan (Schedule 176 ktpd)

16.3 Hydrology and Hydrogeology
No studies have been made at this stage. The pit sits in a V shape valley through which the
Rocin River flows. For this PEA a river diversion has been considered allowing for mining of the
pit and the location of waste dumps.
Period
Waste
(Mt)
Acc. Waste
(Mt)
North Dump
(Mt)
South Dump
(Mt)
0 13.8 13.8 13.8
1 15.4 29.3 15.4
2 28.2 57.5 28.2
3 23.5 81 23.5
4 44.7 125.7 44.7
5 46.6 172.3 46.6
6 63.4 235.7 63.4
7 63.4 299 63.4
8 76.6 375.7 76.6
9 76.6 452.3 76.6
10 76.6 528.9 76.6
11 76.6 605.6 76.6
12 76.6 682.2 76.6
13 76.6 758.9 76.6
14 76.6 835.5 76.6
15 76.6 912.1 76.6
16 76.6 988.8 76.6
17 76.6 1,065.40 76.6
18 76.6 1,142.10 76.6
19 76.6 1,218.70 76.6
20 76.6 1,295.30 76.6
21 73.6 1,369.00 73.6
22 69.6 1,438.60 69.6
23 69.6 1,508.30 69.6
24 68.3 1,576.50 68.3
25 58.9 1,635.40 58.9
26 57.8 1,693.20 57.8
27 25.4 1,718.60 25.4
28 1.5 1,720.10 1.5
29 1.2 1,721.20 1.2
Total 1,721.20 1,721.20 988.8 732.5

173
A provision under item Other in the Operating Costs allows for water management in the pit and
dumps, among other activities.
16.4 Treatment Capacity
The options considered for the treatment plant are presented in Table 16-4.
Table 16-4: Plant capacity options

16.5 Optimum Pit Shells
In order to capture the best value from the resource, a Whittle pit optimization was run for all
options considered. The input data and source are presented in Table 16-5.
Table 16-5: Input Data for Pit Optimization

Capacity
Ktpd
1.2 88 Life of Mine (LoM)
1.5 88-176 Staged production increase
Case Observation
Variable Source / Comment
Price
Copper US$/lb 2.75
Molybdenum US$/lb 13.6
Selling Cost
Cu in conc. US$/lb 0.5537
Mo in conc. US$/lb 1.60
Mining Cost Benchmarking of similar operations owners fleet
Minimum US$/t mined 2.25 For 176 Ktpd
Maximum US$/t mined 3.42 For 16 Ktpd
Process Cost Benchmarking of similar operations
Minimum US$/t milled 6.94 For 176 Ktpd
Maximum US$/t milled 8.81 For 16 Ktpd
G & A Cost US$/t milled 0.00 Included in Mining and in Process cost
Recovery Total Copper recovery testwork, ref. Chapter 13
Cu recovery % 90
Mo recovery % 75
Benchmarking
Current long term price

174
16.6 Mine Operations
The following sections describe key elements of the mining operations.
As a Base Case study an Owner Operated fleet has been considered. A first principal equipment
and cost model was used to determine equipment requirements, capital and operating costs and
direct (operators and maintenance personnel) and indirect manpower. Quotations or reference
costs were obtained for the equipment. Coffey database, suppliers and benchmarking key
consumptions were used in the estimates.
16.6.1 Drill and Blast
The Site Technical Evaluation Report Vizcachitas Copper/Molybdenum Project by Golder
Associates in January 1999 classifies the rock mass situated from 0 to 260 m as poor and fair to
good below 260 m based on both Rock Quality Designation (RQD) and Rock Mass Rating
(RMR).
During the site visit, outcrops and overburden of the future pit and core inspections were
completed. The conclusions reached by these on-site inspections are in agreement with the
classification stated in the Golder report.
Considering this information, a powder factor of approximately 180 g/t has been used for this
Report. This value is in line with similar bulk operations in the Andes. The rock mass presents a
highly fractured matrix requiring sufficient explosive energy to generate movement to unlock the
in situ pre-formed blocks. The same powder density was used for the overburden and waste in
the pit at this stage of its development. The blasting costs are a minor operational cost.
However, blast fragmentation studies should be completed to optimise this operation at a later
stage.
Rotary drill equipment has been considered for all the options. Drilling diameter ranges from
4
7
/
8
to 9
7
/
8
with equipment designed to serve each treatment capacity option. Controlled
blasting in the form of pre-splitting to provide for safe working conditions and to ensure slope
stability has been provided for.
Provisions for drilling and blasting have been made under Drilling and Blasting cost estimates in
the cost model. An example of design parameter used is shown in Table 16-6.

175

Table 16-6: Drilling and Blasting design parameters

An estimate for pre-splitting over 20 metre long holes (double benching) has been made to
maintain safer working conditions and to achieve or improve the slope angles in weaker rock
areas.
A provision of 5 % of blasting costs has been made for wet holes for mineral and waste. This
type of situation may occur in the winter season.
A provision of 2 % of blasting costs has been made for secondary blasting.
A service contract has been considered for the blasting operations, a common practice in
Chilean mining operations. A reference cost for such service was obtained and forms the basis
of the blasting costs estimates. The parameters for drilling operating conditions are shown in
Table 16-7.
Table 16-7: Drilling Operating Conditions

Item Unit Value
Bench height m 10
Burden m 6
Spacing m 7.5
Subdrill m 2
Blasthole length m 12
Stemming m 4
Explosive density - ANFO g/cm
3
0.8
Material density t/m3 2.7
Blasthole diameter inches 7 7/8
Tonnes per blasthole t 1215
Explosive per blasthole kg 218.6
Powder factor g/t 180
Drilled metres per 1000 tonnes m/kt 9.9
Rotary Drilling Unit Value
Drill Unit Operating Conditions
Availability % 85
Utilization % 50
Operating Factor % 85

176
16.6.2 Load and Haul
Front-end loaders or hydraulic and rope shovels have been selected to manage loading
operations for each option; matching trucks for each loader have also been selected.
Mining operations take place between 1,500 to approximately 3,000 masl. This is defined as low
to medium altitude for mining in the Andes. No equipment de-rating has been applied at this
stage.
The average precipitation is approximately 300 mm per year in the form of rain or snow falling
between the months of April and October. A provision for winter conditions has been made
under Support Equipment and Other in the Operating Costs estimates.
A loose density of 1.82 t/m
3
was considered, taking into account a 30 % swell factor for both
waste and mineralised rock. Key operating variables for loading and transport equipment are
presented in Table 16-8.
Table 16-8: Loading & Transport Operating Parameters

Fuel consumption data was provided by equipment suppliers for medium altitude operations.
For the rope shovels a provision has been made for power supply in Mine Capital Estimates and
Mine Operating Costs.
16.6.3 Auxiliary Equipment
The support and ancillary equipment can be grouped broadly into two categories; the first is
equipment used to support mining operations and the second to service and maintain the mining
equipment fleet.
The major tasks to be completed by the equipment required to support the mining operation
include the following:
Waste rock storage facility maintenance
Parameters Units Value
Availability % 85
Utilization % 85
Operation shift hr 8 * 3
Effective hours per shift hr / shift 8.7
Effective hours per year hr / yr 6,090

177
Bench and road maintenance
Ditch preparation and maintenance
Drill pattern preparation / hole stemming
Emergency stockpile loading and re-handling at primary crusher
General maintenance
Waste stripping and reclamation
The number of auxiliary equipment units is determined as a function of the number of units in the
main loading and hauling fleet, and the total rock movement in the pit. The relations applied are:
One track dozer for each 2.5 pieces of loading and waste dump equipment.
One wheel dozer for each piece of loading equipment
One motor grader for each 3 pieces of haulage equipment
One water truck for each 7 pieces of haulage equipment
Additional equipment has been considered to support opening and maintenance of roads during
winter.
Other light vehicles such as trucks for grade control, pickup trucks for supervision and control
are considered as leased. Sundry equipment such as survey instrumentation and mine control
and dispatch software is included in the capital estimate.
In addition, under Other Costs, 30 % of Direct Mine Opex has been allowed for to provide for
items such as renting of equipment for maintenance, provision of salt for icy conditions,
dewatering, mine power supply, lighting units, tools, tyre handling, computers, software
licensing, etc.
16.7 Manpower
In all of the cases evaluated, two areas will report to the Mine and Maintenance
Superintendents:
Mine Operations

178
Maintenance
Each of these areas will have three different categories:
Technical Services: Personnel involved in the administration of the mine. Supervisors,
dispatch and administration personnel are included into this group
Operators: Personnel to operate the mining equipment, including auxiliary equipment
Maintenance: Personnel for maintenance of the mine equipment
Table 16-9 shows the workforce factor for Supervision, Mine Operation and Maintenance.
Table 16-9: Workforce Factors

Mine and Maintenance Planning and Geology will report to the Mine Superintendent, but those
groups are incorporated in G&A for costing purposes. The manpower requirements for mine
operations for each option has been estimated based on continuous operations, 5 days in 2
days out working an 8-hour shift, except for blasting and support activities which will work day
shift only. Administrative staff will work a 5 days in 2 days out roster working 9.6 hours per day.
Due to the close proximity to the towns of Putaendo and San Felipe, no camp was considered at
the mine site. In accordance with the 5 days in 2 days out system, 4 groups will be needed in
order to accomplish continuous operation.
Total staff for each case considered is broken down as:
Direct Staff
Operation
Supervision
Worker
Comment Operation
Worked
Eq./Shift
Comment Operation
Worked
Eq./Shift
Comment
Administration Primary Equipment Primary Equipment
Mine Superintendet 2 Worker Drill 2.0 Worked Eq./Shift Drill 1.08 Worked Eq./Shift
Maintenance Superintendent 2 Worker Blasting 6.0 Worked Eq./Shift Blsting
Administrative 2 Worker - Shift Loader 1.3 Worked Eq./Shift Loader 0.54 Worked Eq./Shift
Rope Shovel 1.3 Worked Eq./Shift Rope Shovel 0.54 Worked Eq./Shift
Geology Hydraulic Shovel 1.3 Worked Eq./Shift Hydraulic Shovel 0.54 Worked Eq./Shift
Geologist 1 Worker - Shift Truck 1.0 Worked Eq./Shift Truck 0.54 Worked Eq./Shift
Geologist Assistant 4 Worker - Shift
Auxiliary Equipment Auxiliary Equipment
Topography Bulldozer 1.0 Worked Eq./Shift Bulldozer 0.27 Worked Eq./Shift
Topographer 1 Worker - Shift Wheeldozer 1.0 Worked Eq./Shift Wheeldozer 0.27 Worked Eq./Shift
Topographer Assistant 2 Worker - Shift Motograder 1.0 Worked Eq./Shift Motograder 0.27 Worked Eq./Shift
Aljibe Truck 1.0 Worked Eq./Shift Aljibe Truck 0.18 Worked Eq./Shift
Mine Supervisor 1 Worker - Shift
Maintenance Supervisor 1 Worker - Shift Winter Operation Winter Operation
Bulldozer 0.4 Worked Eq./Shift Bulldozer 0.18 Worked Eq./Shift
Wheeldozer 0.4 Worked Eq./Shift Wheeldozer 0.18 Worked Eq./Shift
Motograder 0.4 Worked Eq./Shift Motograder 0.18 Worked Eq./Shift
Supervision Mine Maintenance

179
Indirect Staff
The Operating and Maintenance Personnel are included in Direct Staff. Superintendents (Mine
and Maintenance), Supervisors, Mine Geologists, Surveyors, Technical and Administrative
Personnel are included in Indirect Staff.

16.8 Mining Plan Options
16.8.1 Case 1.2: 88 ktpd
i. Ultimate Pit 88 ktpd
Figure 16-5 shows the Ultimate Pit for 88 ktpd production.

180
Figure 16-5: Ultimate Pit: 88 ktpd (Coffey, June, 2013)
ii. Mine Production Schedule
Table 16-10 shows the production schedule for the case to Life of Mine of 88 ktpd. Up to 24
months pre-stripping is considered to permit plant operation in the third year of activity (Period
2). Full plant capacity will be reached from the 4
th
year (Period 3).

181
Table 16-10: Production Schedule: 88 ktpd

Yearly copper grade, mineral and waste production is shown in Figure 16-6.
Waste Total
Kt % Cu % Mo Kt Kt
0 0 - - 0 0 -
1 0 - - 0 0 -
2 2,315 0.299 0.007 13,915 16,230 6.01
3 2,789 0.245 0.005 15,911 18,700 5.71
4 17,072 0.353 0.006 18,410 35,482 1.08
5 31,680 0.507 0.008 19,008 50,688 0.60
6 31,680 0.501 0.009 19,008 50,688 0.60
7 31,680 0.446 0.015 19,008 50,688 0.60
8 31,680 0.443 0.011 19,008 50,688 0.60
9 31,680 0.426 0.011 19,008 50,688 0.60
10 31,680 0.396 0.013 19,008 50,688 0.60
11 31,680 0.39 0.011 22,176 53,856 0.70
12 31,680 0.349 0.008 22,176 53,856 0.70
13 31,680 0.332 0.007 22,176 53,856 0.70
14 31,680 0.331 0.009 22,176 53,856 0.70
15 31,680 0.329 0.012 22,176 53,856 0.70
16 31,680 0.329 0.012 22,176 53,856 0.70
17 31,680 0.329 0.012 26,928 58,608 0.85
18 31,680 0.325 0.014 26,928 58,608 0.85
19 31,680 0.323 0.015 28,512 60,192 0.90
20 31,680 0.339 0.006 28,512 60,192 0.90
21 31,680 0.327 0.007 28,512 60,192 0.90
22 31,680 0.357 0.007 28,512 60,192 0.90
23 31,680 0.371 0.007 38,016 69,696 1.20
24 31,680 0.348 0.009 38,016 69,696 1.20
25 31,680 0.329 0.011 38,016 69,696 1.20
26 31,680 0.335 0.012 38,016 69,696 1.20
27 31,680 0.337 0.014 38,016 69,696 1.20
28 31,680 0.316 0.016 38,016 69,696 1.20
29 31,680 0.289 0.018 38,016 69,696 1.20
30 31,680 0.288 0.014 38,016 69,696 1.20
31 31,680 0.279 0.006 38,016 69,696 1.20
32 31,680 0.29 0.006 38,016 69,696 1.20
33-37 158,400 0.317 0.009 155,692 314,092 0.98
38-42 158,400 0.348 0.013 31,745 190,145 0.20
43 31,680 0.276 0.022 1,310 32,990 0.04
Period
Mineral
Strip Ratio

182

Figure 16-6: Schedule Production to 88 ktpd
Indicated and Inferred Resource tonnage in mine plan is shown in Figure 16-7. From the total
mineable resources incorporated for Life of Mine, 81 % are Indicated and the remainder are
Inferred Resources.

183

Figure 16-7: Indicated and Inferred Resources in Mine Schedule: 88 ktpd
iii. Equipment Fleet
The primary equipment for production is presented below:
Drilling: 251 mm drill (9
7
/
8
type D75KS)
Loading: Hydraulic Shovel 34 m
3

Haulage: 227 t off-highway haul trucks
Auxiliary equipment for services is presented below:
Bulldozers (850 HP) for Production Services and Winter Operations
Wheel dozer(801 HP) for Production Services and Winter Operations
Motor graders (533 HP) for Production Services and Winter Operations
Water trucks (75.7 m
3
)
The operating and primary equipment fleet is shown in Table 16-11. Auxiliary Equipment Fleet is
shown in Table 16-12.

184
Table 16-11: Operating and Primary Equipment Fleet Schedule: 88 ktpd

Fleet Operating Fleet Operating Fleet Operating
0 0 0 0 0 0 0
1 0 0 0 0 0 0
2 11 9 3 2 4 3
3 13 11 4 3 5 4
4 15 13 4 3 5 4
5 14 12 4 3 5 4
6 13 11 4 3 5 4
7 13 11 4 3 5 4
8 16 14 4 3 5 4
9 19 16 4 3 6 5
10 14 12 4 3 6 5
11 16 14 4 3 6 5
12 16 14 4 3 6 5
13 19 16 4 3 6 5
14 18 15 4 3 6 5
15 20 17 4 3 6 5
16 22 19 4 3 6 5
17 21 18 4 3 6 5
18 19 16 4 3 6 5
19 19 16 4 3 6 5
20 21 18 4 3 6 5
21 23 20 5 4 7 6
22 23 20 5 4 7 6
23 21 18 5 4 7 6
24 23 20 5 4 7 6
25 25 22 5 4 7 6
26 28 24 5 4 7 6
27 30 26 5 4 7 6
28 30 26 5 4 7 6
29 28 24 5 4 7 6
30 28 24 5 4 7 6
31 27 23 4 3 6 5
32 27 23 4 3 6 5
33 27 23 4 3 6 5
34 27 23 4 3 6 5
35 27 23 4 3 6 5
36 15 13 3 2 4 3
37 15 13 3 2 4 3
38 15 13 3 2 4 3
39 15 13 3 2 4 3
40 15 13 3 2 4 3
41 15 13 3 2 4 3
42 15 13 3 2 4 3
43 15 13 3 2 4 3
Period
Trucks 227 t Hydraulic Shovel 34 m3 Drills

185
Table 16-12: Operating and Auxiliary Equipment Fleet Schedule: 88 ktpd

iv. Manpower
The manpower for this case in terms of direct and indirect personnel is shown in Table 16-13.

Fleet Operating Fleet Operating Fleet Operating Fleet Operating Fleet Operating Fleet Operating Fleet Operating
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
1 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2 2 1 3 2 3 2 2 1 2 1 2 1 2 1
3 3 2 4 3 4 3 3 2 2 1 3 2 3 2
4 3 2 4 3 4 3 3 2 2 1 3 2 3 2
5 3 2 4 3 4 3 3 2 2 1 3 2 3 2
6 3 2 4 3 4 3 3 2 2 1 3 2 3 2
7 3 2 4 3 4 3 3 2 2 1 3 2 3 2
8 3 2 4 3 4 3 3 2 2 1 3 2 3 2
9 3 2 4 3 5 4 3 2 2 1 3 2 3 2
10 3 2 4 3 4 3 3 2 2 1 3 2 3 2
11 3 2 4 3 4 3 3 2 2 1 3 2 3 2
12 3 2 4 3 4 3 3 2 2 1 3 2 3 2
13 3 2 4 3 5 4 3 2 2 1 3 2 3 2
14 3 2 4 3 4 3 3 2 2 1 3 2 3 2
15 3 2 4 3 5 4 3 2 2 1 3 2 3 2
16 3 2 4 3 5 4 3 2 2 1 3 2 3 2
17 3 2 4 3 5 4 3 2 2 1 3 2 3 2
18 3 2 4 3 5 4 3 2 2 1 3 2 3 2
19 3 2 4 3 5 4 3 2 2 1 3 2 3 2
20 3 2 4 3 5 4 3 2 2 1 3 2 3 2
21 3 2 5 4 5 4 3 2 2 1 3 2 3 2
22 3 2 5 4 5 4 3 2 2 1 3 2 3 2
23 3 2 5 4 5 4 3 2 2 1 3 2 3 2
24 3 2 5 4 5 4 3 2 2 1 3 2 3 2
25 3 2 5 4 6 5 4 3 2 1 3 2 4 3
26 3 2 5 4 6 5 4 3 2 1 3 2 4 3
27 3 2 5 4 7 6 4 3 2 1 3 2 4 3
28 3 2 5 4 7 6 4 3 2 1 3 2 4 3
29 3 2 5 4 6 5 4 3 2 1 3 2 4 3
30 3 2 5 4 6 5 4 3 2 1 3 2 4 3
31 3 2 4 3 6 5 4 3 2 1 3 2 4 3
32 3 2 4 3 6 5 4 3 2 1 3 2 4 3
33 3 2 4 3 6 5 4 3 2 1 3 2 4 3
34 3 2 4 3 6 5 4 3 2 1 3 2 4 3
35 3 2 4 3 6 5 4 3 2 1 3 2 4 3
36 2 1 3 2 4 3 3 2 2 1 2 1 3 2
37 2 1 3 2 4 3 3 2 2 1 2 1 3 2
38 2 1 3 2 4 3 3 2 2 1 2 1 3 2
39 2 1 3 2 4 3 3 2 2 1 2 1 3 2
40 2 1 3 2 4 3 3 2 2 1 2 1 3 2
41 2 1 3 2 4 3 3 2 2 1 2 1 3 2
42 2 1 3 2 4 3 3 2 2 1 2 1 3 2
43 2 1 3 2 4 3 3 2 2 1 2 1 3 2
Water Truck Bull dozer W. OP Wheeldozer W. OP. Motograder W. OP
Period
Bulldozer Prod. Wheeldozer Prod. Motograder-Prod.

186

187
Table 16-13: Yearly Staff: 88 ktpd

Direct Indirect Total
# # #
0 0 0 0
1 0 0 0
2 151 46 197
3 202 46 248
4 215 46 261
5 206 46 252
6 202 46 248
7 202 46 248
8 224 46 270
9 252 46 298
10 218 46 264
11 236 46 282
12 236 46 282
13 252 46 298
14 241 46 287
15 256 46 302
16 269 46 315
17 265 46 311
18 252 46 298
19 252 46 298
20 265 46 311
21 300 46 346
22 300 46 346
23 286 46 332
24 300 46 346
25 320 46 366
26 334 46 380
27 348 46 394
28 348 46 394
29 334 46 380
30 334 46 380
31 302 46 348
32 302 46 348
33 302 46 348
34 302 46 348
35 302 46 348
36 185 46 231
37 185 46 231
38 185 46 231
39 185 46 231
40 185 46 231
41 185 46 231
42 185 46 231
43 185 46 231
Period

188
16.8.2 Case 1.3: 176ktpd
Figure 16-8 shows the Ultimate Pit for the 176 ktpd case.

Table 16-14 shows the production schedule for the case for the Life of Mine for 176 ktpd. Up to
24 months prestripping work is considered to permit plant operation in the third year of activity
(Period 2). Full plant capacity will be reached from the 4
th
year (Period 3).

189

Yearly copper grade, mineral and waste throughput is shown in Figure 16-9.
Waste Total
Kt % Cu % Mo Kt Kt
0 0 - - 0 0 -
1 0 - - 0 0 -
2 2,403 0.295 0.007 13,827 16,230 5.75
3 3,273 0.235 0.005 15,427 18,700 4.71
4 23,766 0.348 0.006 28,234 52,000 1.19
5 44,352 0.479 0.009 23,504 67,856 0.53
6 63,360 0.472 0.011 44,715 108,075 0.71
7 63,360 0.436 0.012 46,591 109,951 0.74
8 63,360 0.369 0.010 63,360 126,720 1.00
9 63,360 0.334 0.009 63,360 126,720 1.00
10 63,360 0.322 0.010 76,640 140,000 1.21
11 63,360 0.316 0.010 76,640 140,000 1.21
12 63,360 0.345 0.011 76,640 140,000 1.21
13 63,360 0.319 0.012 76,640 140,000 1.21
14 63,360 0.339 0.006 76,640 140,000 1.21
15 63,360 0.345 0.008 76,640 140,000 1.21
16 63,360 0.335 0.012 76,640 140,000 1.21
17 63,360 0.304 0.013 76,640 140,000 1.21
18 63,360 0.290 0.013 76,640 140,000 1.21
19 63,360 0.290 0.011 76,640 140,000 1.21
20 63,360 0.307 0.009 76,640 140,000 1.21
21 63,360 0.309 0.008 76,640 140,000 1.21
22 63,360 0.320 0.008 76,640 140,000 1.21
23 63,360 0.323 0.007 73,640 137,000 1.16
24 63,360 0.326 0.010 69,640 133,000 1.10
25 63,360 0.312 0.016 69,640 133,000 1.10
26 63,360 0.271 0.013 68,275 131,635 1.08
27 63,360 0.308 0.012 58,908 122,268 0.93
28 63,360 0.321 0.012 57,750 121,110 0.91
29 63,360 0.316 0.007 25,369 88,729 0.40
30 44,582 0.358 0.015 1,519 46,100 0.03
31 27,325 0.261 0.026 1,161 28,486 0.04
Total 1,666,342 0.334 0.011 1,721,239 3,387,581 1.03
Period
Mineral
Strip Ratio

190

Figure 16-9: Schedule Production to 176 ktpd
Indicated and Inferred Resources tonnage for the mine plan is shown in Figure 16-10. From the
total mineable resources incorporated for the Life of Mine, 75 % are Indicated and the remainder
are Inferred Resources.

191

In this case, the primary equipment for production is presented below:
7
/
8
type D75KS)
Loading: Rope Shovel 56 m
3

Wheel dozer (801 HP) for Production Services and Winter Operations
3
)

192

0 0 0 0 0 0 0
1 0 0 0 0 0 0
2 0 0 0 0 0 0
3 11 9 3 2 3 2
4 12 10 4 3 5 4
5 20 17 5 4 7 6
6 22 19 5 4 7 6
7 27 23 6 5 7 6
8 25 22 6 5 7 6
9 32 28 6 5 7 6
10 31 27 6 5 7 6
11 31 27 6 5 7 6
12 30 26 6 5 7 6
13 33 29 6 5 7 6
14 36 31 6 5 7 6
15 37 32 6 5 7 6
16 36 31 6 5 7 6
17 37 32 6 5 7 6
18 38 33 6 5 7 6
19 27 23 6 5 7 6
20 28 24 6 5 7 6
21 28 24 6 5 7 6
22 29 25 6 5 7 6
23 25 22 6 5 7 6
24 25 22 6 5 7 6
25 25 22 6 5 7 6
26 21 18 6 5 6 5
27 22 19 6 5 7 6
28 20 17 4 3 7 6
29 12 10 3 2 5 4
30 8 7 2 1 4 3
31 6 5 2 1 3 2
Period
Trucks 363 t Electric Rope Shovel 56 m3 Drills

193

iv. Manpower

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
1 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3 2 1 3 2 3 2 2 1 2 1 2 1 2 1
4 3 2 4 3 3 2 2 1 2 1 3 2 2 1
5 3 2 5 4 5 4 3 2 2 1 3 2 3 2
6 3 2 5 4 5 4 3 2 2 1 3 2 3 2
7 3 2 6 5 6 5 4 3 2 1 4 3 4 3
8 3 2 6 5 6 5 4 3 2 1 4 3 4 3
9 3 2 6 5 7 6 4 3 2 1 4 3 4 3
10 3 2 6 5 7 6 4 3 2 1 4 3 4 3
11 3 2 6 5 7 6 4 3 2 1 4 3 4 3
12 3 2 6 5 7 6 4 3 2 1 4 3 4 3
13 3 2 6 5 7 6 4 3 2 1 4 3 4 3
14 3 2 6 5 8 7 5 4 2 1 4 3 5 4
15 3 2 6 5 8 7 5 4 2 1 4 3 5 4
16 3 2 6 5 8 7 5 4 2 1 4 3 5 4
17 3 2 6 5 8 7 5 4 2 1 4 3 5 4
18 3 2 6 5 8 7 5 4 2 1 4 3 5 4
19 3 2 6 5 6 5 4 3 2 1 4 3 4 3
20 3 2 6 5 6 5 4 3 2 1 4 3 4 3
21 3 2 6 5 6 5 4 3 2 1 4 3 4 3
22 3 2 6 5 6 5 4 3 2 1 4 3 4 3
23 3 2 6 5 6 5 4 3 2 1 4 3 4 3
24 3 2 6 5 6 5 4 3 2 1 4 3 4 3
25 3 2 6 5 6 5 4 3 2 1 4 3 4 3
26 3 2 6 5 5 4 3 2 2 1 4 3 3 2
27 3 2 6 5 5 4 3 2 2 1 4 3 3 2
28 3 2 4 3 5 4 3 2 2 1 3 2 3 2
29 2 1 3 2 3 2 2 1 2 1 2 1 2 1
30 2 1 2 1 3 2 2 1 2 1 2 1 2 1
31 1 1 1 1 2 1 1 1 1 1 1 1 1 1
Period

194

# # #
0 0 0 0
1 0 0 0
2 0 0 0
3 138 46 184
4 186 46 232
5 277 46 323
6 290 46 336
7 341 46 387
8 337 46 383
9 379 46 425
10 375 46 421
11 375 46 421
12 365 46 411
13 388 46 434
14 408 46 454
15 412 46 458
16 408 46 454
17 412 46 458
18 422 46 468
19 341 46 387
20 351 46 397
21 351 46 397
22 359 46 405
23 337 46 383
24 337 46 383
25 337 46 383
26 288 46 334
27 306 46 352
28 270 46 316
29 169 46 215
30 127 46 173
31 76 46 122
Period

195
16.8.3 Case 1.5: 88 - 176 ktpd
i. Ultimate Pit 88 - 176 ktpd
Figure 16-11 shows the Ultimate Pit for staged production from 88-176 ktpd.

Figure 16-11: Ultimate Pit: 88-176 ktpd (Coffey, June, 2013)
Mine Production Schedule
Table 16-18 shows the production schedule for the staged production increase from 88 to 176
ktpd. Up to 24 months prestripping work to permit plant operation in the second year of activity
(Period 1) is considered. Full plant capacity (Phase 1 to 88 ktpd) will be reached from the 3
rd

year. An expansion to 176 ktpd (Phase 2) will be reached in the eighth year (Period 7).

196

Table 16-18: Production Schedule: 88 - 176 ktpd

Waste Total
Kt % Cu % Mo Kt Kt
0 0 - - 0 0 -
1 0 - - 0 0 -
2 2,403 0.295 0.007 13,827 16,230 5.75
3 3,273 0.235 0.005 15,427 18,700 4.71
4 21,164 0.350 0.006 22,836 44,000 1.08
5 31,680 0.487 0.009 19,705 51,385 0.62
6 31,680 0.491 0.009 22,416 54,096 0.71
7 31,680 0.448 0.012 31,874 63,554 1.01
8 31,680 0.436 0.012 44,548 76,228 1.41
9 63,360 0.395 0.009 66,640 130,000 1.05
10 63,360 0.370 0.009 76,640 140,000 1.21
11 63,360 0.334 0.010 76,640 140,000 1.21
12 63,360 0.324 0.010 76,640 140,000 1.21
13 63,350 0.328 0.009 76,650 140,000 1.21
14 63,350 0.332 0.010 76,650 140,000 1.21
15 63,350 0.328 0.010 76,650 140,000 1.21
16 63,350 0.339 0.010 76,650 140,000 1.21
17 63,360 0.334 0.008 76,640 140,000 1.21
18 63,360 0.326 0.011 76,640 140,000 1.21
19 63,360 0.304 0.011 76,640 140,000 1.21
20 63,360 0.295 0.012 76,640 140,000 1.21
21 63,360 0.296 0.012 76,640 140,000 1.21
22 63,360 0.309 0.013 76,640 140,000 1.21
23 63,360 0.321 0.009 73,640 137,000 1.16
24 63,360 0.317 0.007 69,640 133,000 1.10
25 63,360 0.323 0.008 69,640 133,000 1.10
26 63,360 0.328 0.011 69,640 133,000 1.10
27 63,360 0.295 0.014 53,156 116,516 0.84
28 63,360 0.280 0.013 48,657 112,017 0.77
29 63,360 0.317 0.014 46,521 109,881 0.73
30 63,360 0.309 0.010 45,714 109,074 0.72
31 63,360 0.339 0.008 9,129 72,489 0.14
32 34,956 0.332 0.019 1,044 36,000 0.03
33 20,586 0.259 0.026 825 21,410 0.04
Total 1,666,341 0.334 0.011 1,721,239 3,387,580 1.03
Mineral
Strip Ratio Period

197
Yearly copper grade, mineral and waste throughput is shown in Figure 16-12.

Figure 16-12: Schedule Production: 88-176 ktpd
Indicated and Inferred Resources tonnage in mine plan is shown in Figure 16-13. From the total
mineable resources incorporated for Life of Mine, 75 % are Indicated and the remainder are
Inferred Resources.

198
Figure 16-13: Indicated and Inferred Resources in Mine Schedule: 88-176 ktpd
ii. Equipment Fleet
7
/
8
type D75KS)
Loading: Hydraulic shovel 45 m
3

Wheel dozer (801 HP) for Production Services and Winter Operations
3
)

199
Table 16-19: Operating and Primary Equipment Fleet Schedule: 88-176 ktpd

0 0 0 0 0 0 0
1 0 0 0 0 0 0
2 0 0 0 0 0 0
3 10 8 3 2 5 4
4 10 8 3 2 5 4
5 11 9 3 2 6 5
6 14 12 4 3 6 5
7 16 14 4 3 7 6
8 27 23 6 5 12 10
9 31 27 6 5 13 11
10 30 26 6 5 13 11
11 30 26 6 5 13 11
12 29 25 6 5 13 11
13 29 25 6 5 13 11
14 35 30 6 5 13 11
15 37 32 6 5 13 11
16 36 31 6 5 13 11
17 36 31 6 5 13 11
18 38 33 6 5 13 11
19 35 30 6 5 13 11
20 29 25 6 5 13 11
21 29 25 6 5 13 11
22 28 24 6 5 13 11
23 27 23 6 5 12 10
24 27 23 6 5 12 10
25 23 20 6 5 12 10
26 21 18 6 5 11 9
27 20 17 5 4 11 9
28 20 17 5 4 11 9
29 22 19 5 4 11 9
30 16 14 4 3 7 6
31 10 8 3 2 4 3
32 7 6 2 1 3 2
33 5 4 1 1 2 1
Period
Trucks 345 t Hydraulic Shovel 45 m3 Drills

200
Table 16-20: Operating and Auxiliary Equipment Fleet Schedule: 88-176 ktpd

iii. Manpower

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
1 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3 2 1 3 2 3 2 2 1 2 1 2 1 2 1
4 2 1 3 2 3 2 2 1 2 1 2 1 2 1
5 2 1 3 2 3 2 2 1 2 1 2 1 2 1
6 3 2 4 3 4 3 3 2 2 1 3 2 3 2
7 3 2 4 3 4 3 3 2 2 1 3 2 3 2
8 3 2 6 5 6 5 4 3 2 1 4 3 4 3
9 3 2 6 5 7 6 4 3 2 1 4 3 4 3
10 3 2 6 5 7 6 4 3 2 1 4 3 4 3
11 3 2 6 5 7 6 4 3 2 1 4 3 4 3
12 3 2 6 5 6 5 4 3 2 1 4 3 4 3
13 3 2 6 5 6 5 4 3 2 1 4 3 4 3
14 3 2 6 5 7 6 4 3 2 1 4 3 4 3
15 3 2 6 5 8 7 5 4 2 1 4 3 5 4
16 3 2 6 5 8 7 5 4 2 1 4 3 5 4
17 3 2 6 5 8 7 5 4 2 1 4 3 5 4
18 3 2 6 5 8 7 5 4 2 1 4 3 5 4
19 3 2 6 5 7 6 4 3 2 1 4 3 4 3
20 3 2 6 5 6 5 4 3 2 1 4 3 4 3
21 3 2 6 5 6 5 4 3 2 1 4 3 4 3
22 3 2 6 5 6 5 4 3 2 1 4 3 4 3
23 3 2 6 5 6 5 4 3 2 1 4 3 4 3
24 3 2 6 5 6 5 4 3 2 1 4 3 4 3
25 3 2 6 5 5 4 3 2 2 1 4 3 3 2
26 3 2 6 5 5 4 3 2 2 1 4 3 3 2
27 3 2 5 4 5 4 3 2 2 1 3 2 3 2
28 3 2 5 4 5 4 3 2 2 1 3 2 3 2
29 3 2 5 4 5 4 3 2 2 1 3 2 3 2
30 3 2 4 3 4 3 3 2 2 1 3 2 3 2
31 2 1 3 2 3 2 2 1 2 1 2 1 2 1
32 2 1 2 1 3 2 2 1 2 1 2 1 2 1
33 1 1 1 1 2 1 1 1 1 1 1 1 1 1
Period

201

Table 16-21: Yearly Staff: 88-176 ktpd

# # #
0 0 0 0
1 0 0 0
2 0 0 0
3 157 46 203
4 157 46 203
5 177 46 223
6 218 46 264
7 250 46 296
8 399 46 445
9 446 46 492
10 436 46 482
11 436 46 482
12 430 46 476
13 430 46 476
14 463 46 509
15 483 46 529
16 479 46 525
17 479 46 525
18 493 46 539
19 463 46 509
20 430 46 476
21 430 46 476
22 422 46 468
23 399 46 445
24 399 46 445
25 374 46 420
26 346 46 392
27 321 46 367
28 321 46 367
29 334 46 380
30 250 46 296
31 143 46 189
32 105 46 151
33 61 46 107
Period

202
16.8.4 Case 2.2: 44 ktpd
Figure 16-14 shows the Ultimate Pit for the 44 ktpd case.


203
Table 16-22 shows the production schedule for the case to Life of Mine to 44 ktpd. Up to 18
months prestripping work to permit plant operation in the second year of activity (Period 1) is
considered. Full plant capacity will be reached from the 3
rd
year.

Waste Total
Kt % Cu % Mo Kt Kt
0 0 - - 0 0 -
1 0 - - 0 0 -
2 1,633 0.306 0.008 22,917 24,550 14.04
3 6,065 0.276 0.006 23,935 30,000 3.95
4 15,840 0.484 0.009 14,160 30,000 0.89
5 15,840 0.569 0.008 14,160 30,000 0.89
6 15,840 0.446 0.009 14,160 30,000 0.89
7 15,840 0.392 0.007 14,160 30,000 0.89
8 15,840 0.403 0.008 14,160 30,000 0.89
9 15,840 0.433 0.01 14,160 30,000 0.89
10 15,840 0.439 0.011 14,160 30,000 0.89
11 15,840 0.437 0.011 14,160 30,000 0.89
12 15,840 0.432 0.01 14,160 30,000 0.89
13 15,840 0.431 0.011 14,160 30,000 0.89
14 15,840 0.429 0.012 14,160 30,000 0.89
15 15,840 0.418 0.011 14,160 30,000 0.89
16 15,840 0.392 0.011 14,160 30,000 0.89
17 15,840 0.377 0.011 14,160 30,000 0.89
18 15,840 0.371 0.011 14,160 30,000 0.89
19 15,840 0.37 0.013 14,160 30,000 0.89
20 15,840 0.372 0.014 14,160 30,000 0.89
21 15,840 0.37 0.016 14,160 30,000 0.89
22 15,840 0.352 0.017 14,160 30,000 0.89
23 15,840 0.354 0.013 14,160 30,000 0.89
24 15,840 0.358 0.008 14,160 30,000 0.89
25 15,840 0.359 0.007 14,160 30,000 0.89
26 15,840 0.362 0.008 14,160 30,000 0.89
27 15,840 0.364 0.008 14,160 30,000 0.89
28 15,840 0.361 0.009 14,160 30,000 0.89
29 15,840 0.353 0.01 14,160 30,000 0.89
30 15,840 0.338 0.011 14,160 30,000 0.89
31 15,840 0.328 0.012 14,160 30,000 0.89
32 15,840 0.321 0.013 14,160 30,000 0.89
33-37 79,200 0.318 0.011 73,800 153,000 0.93
38-42 79,200 0.326 0.007 73,800 153,000 0.93
Total 625,458 0.374 0.010 605,092 1,230,550 0.97
Mineral
Strip Ratio Period

204
Yearly copper grade, mineral and waste throughput is shown in Figure 16-16

Figure 16-15: Schedule Production: 44 ktpd
Indicated and Inferred Resources tonnage from the mine plan is shown in Figure 16-16. From
the total mineable resources incorporated in the Life of Mine, 85 % are Indicated and the
remainder are Inferred Resources.

205

Drilling: Roc L8 111-203 mm drill
Loading: 19 m
3
front end loader
Bulldozers for Production Services and Winter Operations
Wheel dozer for Production Services and Winter Operations
Motor graders for Production Services and Winter Operations
Water trucks

206

0 0 0 0 0 0 0
1 0 0 0 0 0 0
2 13 11 5 4 5 4
3 12 10 5 4 5 4
4 12 10 5 4 5 4
5 13 11 5 4 5 4
6 12 10 5 4 5 4
7 12 10 5 4 5 4
8 12 10 5 4 5 4
9 12 10 5 4 5 4
10 12 10 5 4 5 4
11 13 11 5 4 5 4
12 13 11 5 4 5 4
13 12 10 5 4 5 4
14 12 10 5 4 5 4
15 13 11 5 4 5 4
16 13 11 5 4 5 4
17 14 12 5 4 5 4
18 14 12 5 4 6 5
19 14 12 5 4 5 4
20 14 12 5 4 5 4
21 15 13 5 4 6 5
22 15 13 5 4 6 5
23 14 12 5 4 5 4
24 14 12 5 4 5 4
25 15 13 5 4 5 4
26 15 13 5 4 5 4
27 15 13 5 4 5 4
28 15 13 5 4 5 4
29 14 12 5 4 5 4
30 14 12 5 4 5 4
31 15 13 5 4 5 4
32 15 13 5 4 6 5
33 15 13 5 4 6 5
34 15 13 5 4 6 5
35 15 13 5 4 6 5
36 15 13 5 4 6 5
37 14 12 5 4 6 5
38 14 12 5 4 6 5
39 14 12 5 4 6 5
40 14 12 5 4 5 4
41 14 12 5 4 5 4
42 15 13 5 4 5 4
Period
Trucks 136 t FEL 19 m3 Drills 111-203 mm

207

iv. Manpower

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
1 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2 3 2 5 4 4 3 3 2 2 1 3 2 3 2
3 3 2 5 4 3 2 2 1 2 1 3 2 2 1
4 3 2 5 4 3 2 2 1 2 1 3 2 2 1
5 3 2 5 4 4 3 3 2 2 1 3 2 3 2
6 3 2 5 4 3 2 2 1 2 1 3 2 2 1
7 3 2 5 4 3 2 2 1 2 1 3 2 2 1
8 3 2 5 4 3 2 2 1 2 1 3 2 2 1
9 3 2 5 4 3 2 2 1 2 1 3 2 2 1
10 3 2 5 4 3 2 2 1 2 1 3 2 2 1
11 3 2 5 4 4 3 3 2 2 1 3 2 3 2
12 3 2 5 4 4 3 3 2 2 1 3 2 3 2
13 3 2 5 4 3 2 2 1 2 1 3 2 2 1
14 3 2 5 4 3 2 2 1 2 1 3 2 2 1
15 3 2 5 4 4 3 3 2 2 1 3 2 3 2
16 3 2 5 4 4 3 3 2 2 1 3 2 3 2
17 3 2 5 4 4 3 3 2 2 1 3 2 3 2
18 3 2 5 4 4 3 3 2 2 1 3 2 3 2
19 3 2 5 4 4 3 3 2 2 1 3 2 3 2
20 3 2 5 4 4 3 3 2 2 1 3 2 3 2
21 3 2 5 4 4 3 3 2 2 1 3 2 3 2
22 3 2 5 4 4 3 3 2 2 1 3 2 3 2
23 3 2 5 4 4 3 3 2 2 1 3 2 3 2
24 3 2 5 4 4 3 3 2 2 1 3 2 3 2
25 3 2 5 4 4 3 3 2 2 1 3 2 3 2
26 3 2 5 4 4 3 3 2 2 1 3 2 3 2
27 3 2 5 4 4 3 3 2 2 1 3 2 3 2
28 3 2 5 4 4 3 3 2 2 1 3 2 3 2
29 3 2 5 4 4 3 3 2 2 1 3 2 3 2
30 3 2 5 4 4 3 3 2 2 1 3 2 3 2
31 3 2 5 4 4 3 3 2 2 1 3 2 3 2
32 3 2 5 4 4 3 3 2 2 1 3 2 3 2
33 3 2 5 4 4 3 3 2 2 1 3 2 3 2
34 3 2 5 4 4 3 3 2 2 1 3 2 3 2
35 3 2 5 4 4 3 3 2 2 1 3 2 3 2
36 3 2 5 4 4 3 3 2 2 1 3 2 3 2
37 3 2 5 4 4 3 3 2 2 1 3 2 3 2
38 3 2 5 4 4 3 3 2 2 1 3 2 3 2
39 3 2 5 4 4 3 3 2 2 1 3 2 3 2
40 3 2 5 4 4 3 3 2 2 1 3 2 3 2
41 3 2 5 4 4 3 3 2 2 1 3 2 3 2
42 3 2 5 4 4 3 3 2 2 1 3 2 3 2
Period

208

# # #
0 0 0 0
1 0 0 0
2 209 46 255
3 192 46 238
4 192 46 238
5 209 46 255
6 192 46 238
7 192 46 238
8 192 46 238
9 192 46 238
10 192 46 238
11 209 46 255
12 209 46 255
13 192 46 238
14 192 46 238
15 209 46 255
16 209 46 255
17 213 46 259
18 225 46 271
19 213 46 259
20 213 46 259
21 234 46 280
22 234 46 280
23 213 46 259
24 213 46 259
25 222 46 268
26 222 46 268
27 222 46 268
28 222 46 268
29 213 46 259
30 213 46 259
31 222 46 268
32 234 46 280
33 234 46 280
34 234 46 280
35 234 46 280
36 234 46 280
37 225 46 271
38 225 46 271
39 225 46 271
40 213 46 259
41 213 46 259
42 222 46 268
Period

209
16.9 Summary
Table 16-26 summarises the waste and mineable tonnage resources, Cu and Mo grades and
metal content for a 40 year mine life for the selected options and the residual metal in the
resource where applicable.
Table 16-26: Mine Plan Summary

The production schedules presented above were used as the basis for determining equipment
requirements. The residual mineral is that remaining after 40 years LOM and is defined as that
mineral remaining in the pit selected for each option considered.
Mine operations are scheduled for three 8-hour shifts per day, 5 days in 2 days out for a total of
360 d/y. Four crews, rotating between day and night shifts, are contemplated to provide
continuous operation and maintenance labour coverage for the mine.
Table 16-27 summarises the primary mining fleet requirement.

Total
capacity
Mineral CuT Mo
CuT Metal
in situ
Mo Metal in
situ
Waste Strip Ratio Total
ktpd Mt % % Mlb Mlb Mt Mt Mt
1.2 88 1,279 0.346 0.011 9,755 310 1033 0.81 2,312
1.3 176 1,666 0.334 0.011 12,270 404 1721 1.03 3,388
1.5 88 - 176 1,666 0.334 0.011 12,270 404 1721 1.03 3,388
2.2 44 1,077 0.358 0.011 8,500 261 850 0.79 1,927
Case

210
Table 16-27: Primary Equipment for each case

Mine personnel requirements are based on owner operations although some mining functions
such as prestripping, down-hole explosive loading, supply and shot services, and contract
maintenance by Maintenance and Repair Contracts (MARC) will be completed by contractors.
Maximum Direct and Indirect workforce requirements range between 280 and 539 per year for
the options presented.

Throughput Drilling Loading Haulage
ktpd Equipment Equipment Equipment
1.2 88 251 mm Drill (9 7/8" type D75KS) Hydraulic Shovel 34 m
3
227 t off-highway haul trucks
1.3 176 251 mm Drill (9 7/8" type D75KS) Rope Shovel 56 m
3
1.5 88-176 251 mm Drill (9 7/8" type D75KS) Hydraylic Shovel 45 m
3
2.2 44 Roc L8 110-203 mm Drill 19 m
3
FEL 136 t off-highway haul trucks
Case

211
17 RECOVERY METHODS
17.1 Introduction
The process for the recovery of copper and molybdenum includes:
Crushing and grinding of the ROM mineralized material
Copper-molybdenum rougher and cleaner flotation
Regrinding
Copper and molybdenum separation by selective flotation
Molybdenum cleaner flotation, and
Dewatering of copper and molybdenum concentrates.
The copper and molybdenum concentrates are envisioned to be transported by truck from the
concentrator to the rail load-out facility from where they will be transported by rail to the Port of
Ventanas or other destination for shipment. The flotation tailings are thickened before placement
in the Tailings Storage facility (TSF).

212

Figure 17-1: Simplified sketch of the Plant flow sheet.

213
17.2 Process Design Basis and Design Criteria Summary
The key process criteria for the plant design and operating costs are provided in Table 17-1.
Table 17-1: Summary of Key Process Design Criteria

Item Unit Value Source
General Parameters
Operating days d/y 365 Parameters defined by Alquimia
Operating hours h/d 24 Parameters defined by Alquimia
Utilization
Primary crushing % 70 Parameters defined by Alquimia
Grinding % 92 Parameters defined by Alquimia
Cu - Mo flotation % 92 Parameters defined by Alquimia
Mo flotation % 92 Parameters defined by Alquimia
Thickening % 98 Parameters defined by Alquimia
Filtering % 85 Parameters defined by Alquimia
Drying % 90 Parameters defined by Alquimia
Mineral Parameters
Cu head grade % 0.51 Parameters obtained from analysis of Vizcachitas testwork (Average)
Mo head grade ppm 130 Parameters obtained from analysis of Vizcachitas testwork (Average)
Work index (Wi) kWh/st 13.0 Parameters obtained from analysis of Vizcachitas testwork
Moisture % 3.0 Parameters defined by Alquimia
Specific solid gravity - 2.6 Parameters obtained from analysis of Vizcachitas testwork
Cu-Mo Flotation
Cu recovery % 90.2 Calculated
Mo recovery % 84.6 Calculated
Cu concentrate grade % 30.0 Parameters obtained from analysis of Vizcachitas testwork
Mo concentrate grade % 0.72 Parameters obtained from analysis of Vizcachitas testwork
Mo Flotation
Cu concentrate grade % 2.0 Benchmarking parameters and industrial practice
Mo concentrate grade % 48.0 Benchmarking parameters and industrial practice
Global Process
Cu concentrate grade % 30.0 Benchmarking parameters and industrial practice
Mo concentrate grade % 48.0 Benchmarking parameters and industrial practice

214
17.3 Crushing
The mineralized material from the mine is transported by trucks to the primary crushing facility,
where it is discharged into the dump pocket which feeds a jaw or gyratory crusher.
The crusher discharges onto an apron feeder and the crushed material is then transported by a
belt conveyor to the covered coarse material stockpile.
17.4 Grinding
Semi-Autogenous Grinding (SAG) was selected for the milling stage. This decision relies in the
fact that in a SAG circuit the capacity can be easily doubled incrementally, by adding one or two
ball mills whilst maintaining only one grinding line. If the mineral throughput becomes too high
and cannot be processed by one line, additional lines can be added to the circuit. The grinding
circuit has been designed to achieve a final product size with 80% passing size (P
80
) of 180 m.
The grinding plant includes the coarse stock pile to the overflow of the cyclone cluster. The SAG
mill is fed by a conveyor belt from the coarse material stockpile. The SAG mill discharge slurry
passes through a vibratory double deck screen with 13 mm apertures to remove pebbles, while
the screen undersize flows into the cyclone feed pumpbox and combines with ball mill discharge
in a Semiautogenous-Ball Mill-Crusher-B (SABC-B) circuit. The combined product is pumped to
the cyclone cluster to classify the product. The coarse material in the underflow returns to the
SAG mill in (SAC) circuit or to the ball mills in SABC-B circuit, the fines in the overflow report by
gravity to rougher flotation.
The vibrating screen oversize (pebbles) is transported by conveyor belts to the pebble crusher
plant and then returned to the grinding circuit, either to the primary mill (SAC circuit) or the
secondary mill (SABC-B circuit).
A pebble circulating load of 30 % and 20 % of the new feed rate, for SAC circuit and SABC-B
circuit respectively, has been assumed for the design of the pebble crusher. This is based on
typical industry experience with mineralized material of similar competency.
Figure 17-2 shows an isometric view of a SAC circuit and Figure 17-3 shows an isometric view
of an SABC-B circuit.

215

Figure 17-2: SAC Circuit

216

Figure 17-3: SABC-B Circuit

217
17.5 Copper-Molybdenum Flotation Circuit Design
The flow sheet selected consists of rougher flotation, rougher concentrate regrind, two stages of
cleaner flotation, and two stages of scavenger flotation. The mineralized material will require a
fine regrind of the rougher concentrate to a P
80
of 45 m to achieve adequate recovery. After
regrinding, conventional flotation is used to enable the production of saleable grade
concentrates.
Rougher concentrate, as well as first and second cleaner concentrate, will report to the regrind
cyclone feed pumpbox. The regrind cyclones will target a cut size P
80
of 45 m which will be
achieved with a cluster of cyclones operating in reverse closed circuit; the cyclones overflow will
report to the first cleaner flotation, while the underflow will feed the vertical mill and this mill
discharge will recirculate back into the flotation circuit.
The first cleaner stage is composed of conventional flotation cells and is fed by the overflow of
the cyclone cluster and the tail of the second cleaner stage. The product feeds the second
cleaner, while the tail feeds the first scavenger stage.
Second cleaner flotation (column cells) concentrate, reports to the bulk flotation thickener while
the tail reports to the first cleaner stage.
First scavenger stage (conventional cells) concentrate reports to the regrind cyclone feed
pumpbox, while the tail feeds the second scavenger stage.
Second scavenger stage (conventional cells) concentrate reports to the regrind cyclone feed
pumpbox, while the tail reports to the tailings thickener.

218

Figure 17-4: Cu - Mo Flotation Circuit

219
The flotation process has been designed so that the first scavenger may be converted to a
cleaner stage if additional cleaning is required. If this modification is adopted the circuit consists
of three stages of cleaner (first cleaner in the normal circuit becomes second cleaner, while first
scavenger becomes first cleaner, and second cleaner becomes third cleaner) and one
scavenger stage. In this modified circuit, the concentrate of the first cleaner feeds the second
cleaner, the concentrate of the second cleaner feeds the third cleaner stage and the tail of the
third cleaner stage feeds the first cleaner stage (see segmented lines in Figure 17-4).
17.6 Copper-Molybdenum Separation and Molybdenum Cleaner
The flow sheet selected to separate copper and molybdenum consists of rougher flotation, four
stages of cleaner flotation in conventional cells, intermediate thickener, and a fifth cleaner
flotation in column cells. The tailings from the rougher flotation is the final copper concentrate.
Concentrate from the fifth cleaner flotation cells is the final molybdenum concentrate.
The Cu-Mo concentrate thickener discharge reports to an acidification pond. The concentrate is
pumped to a conditioning pond, where it mixes with the tail of the first cleaner and dilution water;
reagents are added as necessary (collector, frother, etc.).

220

Figure 17-5: Molybdenum Flotation Circuit
Fromcollective
flotation
Conditioner
pond
Rougher flotation
Cu concentrate
thickener
Cu concentrate
Recovered water
3 cleaner
2 cleaner
1 cleaner
4 cleaner
Intermediate
thickener
Mo concentrate
filter
Bags
Recovered water
Recovered water
Mo concentrate
Recovered water
Acidification
pond
Mo concentrate
thickener
Conditioner
pond 5 cleaner
Mo concentrate Dryer

221
The product of the conditioning tank and the tail of the first cleaner feed the rougher flotation
stage. This stage is composed of conventional, sealed and self-aspirated cells. The concentrate
from this stage reports to the first cleaner stage, while the tailings, the final copper concentrate,
report to a conventional thickener and are thickened to approximately 58 % w/w solids.
Thickened copper concentrate slurry is pumped to the copper concentrate filters. The filter
presses are designed to reduce the moisture content of the concentrate prior to transport. Filter
cake is discharged through the floor of the filter building into a concrete bunker area underneath
the filter press. Filter cake is then removed from the bunker by a Front End Loader (FEL) and
stored in the covered concentrate storage shed. Concentrate will then be reclaimed by an FEL
from the stockpile and loaded into trucks for transport to the rail load-out facility.
The diluted rougher concentrate along with the tail of the second cleaner feed the first cleaner
stage. First cleaner concentrate feeds the second cleaner stage, while the tail reports to the
conditioning tank along with the flow from acidification pond.
The second cleaner stage, composed of conventional, sealed and self-aspirated cells, is fed by
the concentrate of the first cleaner stage and the tail of the third cleaner stage. The second
cleaner concentrate reports to the third cleaner.
The third cleaner stage, composed of conventional, sealed and self-aspirated cells, is fed by the
concentrate of the second cleaner stage and the tail of the fourth cleaner stage. The third
cleaner concentrate reports to the fourth cleaner.
The fourth cleaner stage, composed of conventional, sealed and self-aspirated cells, is fed by
the concentrate of the third cleaner stage and the tail of the fifth cleaner stage. The fourth
cleaner concentrate reports to an intermediate thickener, where concentrate is thickened to
approximately 50 % w/w solids.
The discharge of the intermediate thickener reports to a conditioning tank, prior to a fifth cleaner
flotation stage, which is composed of flotation columns. The tail of the fifth cleaner reports to the
fourth cleaner, while the concentrate reports to the molybdenum concentrate thickener.
Molybdenum flotation concentrate from the fifth cleaner cells is then thickened to approximately
58 % w/w solids. Molybdenum concentrate storage is envisioned to provide surge capacity
ahead of the molybdenum concentrate filter.
The discharge of the molybdenum thickener is filtered, dried and stored in a hopper. The
molybdenum concentrate is then packed in 1 T maxi bags for transport to final sale.

222
17.7 PEA Options and Cases
As mentioned in Chapter 16, for this PEA two options were studied, and within these options
additional cases considering different throughput capacities and growth possibilities were
evaluated as follows:
Option 1 One or two modules with a SAG Mill of 40 diameter x 26 long with 30,000 HP
motor and ball mills (if included) of 27 diameter x 45 long with 25,000 HP motors.
Option 2 - Initial module with a SAG Mill of 34 diameter x 17 long with 15,000 HP motor
and ball mills (if included) of 27 diameter x 45 long with 25,000 HP motors and eventually
an additional module of a SAG Mill of 40 diameter x 26 long with 30,000 HP motor and
ball mills (if included) of 27 diameter x 45long with 25,000 HP motors.
A total of 8 cases were evaluated, the range of throughputs was defined to either maximise
return or minimise initial capital investment. The eight cases are noted below in this section.
Those cases that returned the highest NPVs are presented in this Report. These cases are: 1.2,
1.3, 1.5 and 2.2.
Option 1
Case 1.1: One SAC circuit with a throughput of 32 ktpd.
Case 1.2: One SABC-B circuit with two ball mills, with a throughput of 88 ktpd.
Case 1.3: Two modules with SABC-B circuit with two ball mills per module, with a
throughput of 176 ktpd.
Case 1.4: Start with one SAC circuit module with a throughput of 32 ktpd. After 6 years of
operation it converts to a SABC-B circuit with two ball mills with a final throughput of 88
ktpd.
Case 1.5: Start with one module with SABC-B circuit with two ball mills, with a throughput
of 88 ktpd. After 5 years of operation this module is duplicated achieving a throughput of
176 ktpd.
Option 2
Case 2.1: One SAC circuit with a throughput of 16 ktpd.
Case 2.2: One SABC-B circuit with one ball mill, with a throughput of 44 ktpd.

223
Case 2.3: One SAC circuit module with a throughput of 16 ktpd. After 6 years of operation
it converts to a SABC-B circuit with one ball mill and an additional module with a SAC
circuit. The final throughput of this case is 76 ktpd.
The general arrangements of each option for each case within such option are the same; Figure
17-6 shows the general arrangement for Option 1 and Figure 17-7 shows the general
arrangement for Option 2.
Table 17-2 through Table 17-6 show major equipment for the selected cases.

224

Figure 17-6: General Arrangement Process Plant Cases 1.2, 1.3 and 1.5

225

226
Figure 17-7: General Arrangement Process Plant Case 2.2
Table 17-2: Process Plant Equipment - Crushing

Quantity Characteristics Quantity Characteristics Quantity Characteristics Phase Quantity Characteristics
1 60' x 89 ' 2 60' x 89 ' 1 60' x 89 ' Phase I 1 42' x 65 '
- - - - 1 60' x 89 ' Phase II - -
1
Length = 2000 m,
5,245 tph
2
Length = 2000 m,
3,990 tph
2
Length = 2000 m,
5,240 tph
Phase I 1
Length = 2000 m,
2,621 tph
- - - - 2
Length = 2000 m,
5,240 tph
Phase II - -
Coarse stockpile 1
Diameter = 110 m,
62,500 live ton
1
Diameter = 110 m,
62,000 live ton
1
Diameter = 110 m,
62,500 live ton
Phase I 1
Diameter = 90 m,
31,000 live ton
Coarse stockpile extension - - 1
Diameter = 110 m,
62,000 live ton
1
Diameter = 110 m,
62,500 live ton
Phase II - -
1 width 54in, 8 units 2 width 54in, 8 units 1 width 54in, 8 units Allowances 1 width 42in, 6 units
- - - - 1 width 54in, 8 units
Allowances,
Phase II
- -
1
width 42 in,
Total length 650 m
2
width 42 in,
Total length 650 m
1
width 42 in,
Total length 650 m
Allowances 1
width 36 in,
Total length 650 m
- - - - 1
width 42 in,
Total length 650 m
Allowances,
Phase II
- -
Area Equipment
Crushing
Primary gyratory crusher
Belt conveyor to coarse
stockpile
Feeder
Conveyor

227
Table 17-3: Process Plant Equipment Grinding

1 40'x 26' 2 40'x 26' 1 40'x 26' Phase I 1 34'x 17'
- - - - 1 40'x 26' Phase II - -
2 8' x 20' 4 8' x 20' 2 8' x 20' Phase I 2 6' x 16'
- - - - 1 8' x 20' Phase II - -
- - - - 1 8' x 20'
Phase II,
stand-by
- -
3 - 6 - 3 - Phase I 2 -
- - - - 2 - Phase II - -
- - - - 1 -
Phase II,
stand-by
- -
2
Centrifugal,
9,175 m
3
/hr
4
Centrifugal,
9,175 m
3
/hr
2
Centrifugal,
9,175 m
3
/hr
Estimated 1
Centrifugal,
9,175 m
3
/hr
- - - - 2
Centrifugal,
9,175 m
3
/hr
Estimated,
Phase II
- -
2
Cluster 10+2,
800 mm
4
Cluster 10+2,
800 mm
2
Cluster 10+2, 800
mm
Phase I 1
Cluster 10+2,
800mm
- - - - 2
Cluster 10+2, 800
mm
Phase II - -
2 27' x 45' 4 27' x 45' 2 27' x 45' Phase I 1 27' x 45'
- - - - 2 27' x 45' Phase II - -
Grinding
SAG mill
Vibrating screen of SAG
Pebbles crusher
Cyclone feeding pump
SAG hydrocyclone
Ball mill
Area Equipment

228
Table 17-4: Process Plant Equipment Flotation

18 300 m
3
36 300 m
3
18 300 m
3
Phase I 10 300 m
3
- - - - 18 300 m
3
Phase II - -
5 160 m
3
8 160 m
3
4 160 m
3
Phase I 4 100 m
3
- - - - 4 160 m
3
Phase II - -
4 160 m
3
6 160 m
3
3 160 m
3
Phase I 3 100 m
3
- - - - 3 160 m
3
Phase II - -
4 250 m
3
8 250 m
3
4 250 m
3
Phase I 4 130 m
3
- - - - 4 250 m
3
Phase II - -
2 13m
2
3 16 m
2
2 13 m
2
Phase I 2 6 m
2
- - - - 2 13 m
2
Phase II - -
1 D=30 m 1 D=45 m 1 D=30 m Phase I 1 D=20 m
- - - - 1 D=30 m Phase II - -
2
Cluster 10+2,
400 mm
3 Cluster 6+2, 20'' 1 Cluster 10+2, 15'' Phase I 2
Cluster 6+1,
400mm
- - - - 2 Cluster 10+2, 15'' Phase II - -
Cu concentrate stockpile
extension
- - - - 1 Cluster 10+2, 15'' Phase I - -
2 - 3 - 2 - Phase I 2 -
- - - - 2 - Phase II - -
Flotation
Rougher flotation cell
First cleaner flotation cell
First scavenger flotation cell
Second scavenger flotation cell
Second cleaner flotation cell
Colective concentrate
thickener
Hydrocyclone regrinding
Regrinding mill
Area Equipment

229
Table 17-5: Process Plant Equipment Tailing Handling / Concentrate Handling

1 D=90 m 2 D=90 m 1 D=90 m Phase I 1 D=65 m
- - - - 1 D=90 m Phase II - -
extension
- - - - - - - - -
1
Centrifugal,
4,840 m
3
/hr
2
Centrifugal,
4,840 m
3
/hr
1
Centrifugal,
4,840 m
3
/hr
Phase I 1
Centrifugal,
2,419 m
3
/hr
- - - - 1
Centrifugal,
4,840 m3/hr
Phase II - -
Cu concentrate stockpile 1
Length = 55m ,
width = 25m,
9,200 ton
1
Length = 60m ,
width = 35m,
20,000 ton
1
Length = 40m ,
width = 35m,
9,200 ton
Phase I 1
Length = 37m ,
width = 22m,
4,800 live ton
extension
- - - - 1
Lenght extension 20 m
20,000 ton
Phase I - -
(Train station)
1 - 1 - 1 - Phase I 1 -
Tailing
handling
Tailings thickener
Tailings pump
Concentrate
handling
Area Equipment

230
Table 17-6: Process Plant Equipment Molybdenum Flotation

8 14.2 m
3
8 28.3 m
3
8 14.2 m
3
Phase I 7 8.5 m
3
- - - - 8 500 ft
3
Phase II - -
1 D=28 m 1 D=39 m 1 D=28 m Phase I 1 D= 20m
- - - - - - - - -
1 A= 156 m
2
2 A= 156 m
2
1 A= 156 m
2
Phase I 1 A= 84 m
2
- - - - 1 A= 156 m
2
Phase II - -
6 8.5 m
3
4 28.3 m
3
6 8.5 m
3
Phase I 6 4.25 m
3
- - - - 6 8.5 m
3
Phase II - -
4 8.5 m
3
5 14.2 m
3
4 8.5 m
3
Phase I 4 4.25 m
3
- - - - 4 8.5 m
3
Phase II - -
5 2.8 m
3
4 8.5 m3
3
5 2.8 m
3
Phase I 3 2.8 m
3
- - - - 5 2.8 m
3
Phase II - -
5 1.7 m
3
4 4.25 m
3
4 1.7 m
3
Phase I 4 1.1 m
3
- - - - 4 1.7 m
3
Phase II - -
1 D= 8 m 1 D= 12 m 1 D= 12 m Phase I 1 D= 6 m
- - - - - - - - -
2 D= 0.8 m 2 D= 1 m 2 D= 0.8 m Phase I 1 D= 0.7 m
- - - - 1 D= 0.8 m Phase II - -
1 D= 8 m 1 D= 11 m 1 D= 11 m Phase I 1 D= 6 m
- - - - - - - - -
1 A = 6.3 m
2
1 A = 11 m
2
1 A = 6.3 m
2
Phase I 1 A = 3.2 m
2
- - - - 1 A = 6.3 m
2
Phase II - -
1 A = 8.45 m
2
1 A = 16 m
2
1 A = 8.45 m
2
Phase I 1 A = 4 m
2
- - - - 1 A = 8.45 m
2
Phase II - -
Case 2.2
Mo concentrate dryer
Case 1.2 Case 1.3 Case 1.5
Third cleaner cell
Fourth cleaner cell
Intermediate thickener
Fifth cleaner cell
Mo concentrate thickener
Mo concentrate filter
Molybdemun
flotation
Rougher Flotation cell
Cu concentrate thickener
Cu concentrate filter
First Cleaner cell
Second cleaner cell
Area Equipment

231
18 PROJECT INFRASTRUCTURE
18.1 Vizcachitas Site
The Vizcachitas Property is located at approximately 32.41S and 70.42W in the western
foothills of the Andes at an average altitude of 2,100 masl. The central UTM coordinates are
6,413,600N and 366,200E (Datum PSAD56, Zone 19H). The Property is approximately 150 km
NE from Santiago and 46 km northeast of the town of Putaendo in the Province of San Felipe,
Valparaiso Region, Chile.

232

Figure 18-1: Vizcachitas Property Location
The Vizcachitas Project is sited close to extensive infrastructure systems such as road, rail and
port access, however as with all large projects of this type, the Project will require substantial
infrastructure which will be used to maintain operations.
Figure 18-2 shows the plot plan of the Project facilities.

233

Figure 18-2: Plot Plan Project Facilities

234
18.2 Process Water Supply
The process fresh water make-up requirements by case are presented on Table 18-1. This fresh
water is anticipated to serve the purposes of cleaner flotation, molybdenum flotation, gland seal
water, cooling, reagent mixing, and concentrate washing.
Table 18-1: Make-up Water Demand

Fresh water make-up is considered to be taken from the Rocin River as shown in Figure 18-3.
Table 18-2 shows the maximum flow rates (m3/s) for the Rocin River based on statistical
analysis in Resguardo de Los Patos approximately 25 km from the project site. Los Andes
Copper currently owns consumptive water rights for a fraction of the projected water
requirements with an extraction point located on the Aconcagua River approximately 80 km
away and will need to secure additional consumptive water rights to meet the final project option
selected and make that water available at the Project.
(m
3
/d) (l/s)
1.2 57,286 663
1.3 114,572 1,326
57,286 663
114,572 1,326
2.2 28,644 332
Case
Consumption Fresh Water
1.5

235

Figure 18-3: Water Supply Route

236
18.3 Rocin River Diversion Tunnel
The mine open pit and process plant location are located in the Rocin River path. It is necessary
to divert the watercourse and return it downstream of the Project installations. A tunnel of
approximately 9.5 km with a section of 5 m x 5 m and a slope of 1 % is considered for this
purpose. The tunnel design has considered a precipitation event associated with a return period
of 1 in 100 years of 200 m3/s, as shown in Table 18-2.
Figure 18-4 shows the diversion tunnel layout.

237

Figure 18-4: Tunnel Layout

238
Table 18-2: Average Daily Peak Water Flow by Month (m
3
/s)
*

18.4 Power Supply
Two alternatives are envisioned for power supply depending on the power demand required.
Electrical power supply at 110 kV is feasible for cases requiring less than 100 MVA, whilst 220
kV supply is needed for cases requiring more than 100 MVA.
For 110 kV supply, the tap point would be the Las Vegas substation located south-west of the
project site. The prospective routing of the transmission line from Las Vegas to the project site is
shown in Figure 18-5. The overall transmission line length is 78.5 km. For 220 kV supply, the tap
point would be the Nogales substation located south-west of the project site. The prospective
routing of the transmission line from Nogales to the project site is shown in Figure 18-6. The
overall transmission line length is 105 km.
Los Andes Copper contemplates the construction of a 29 MW run-of-river Hydro Electric Plant in
the Rocin River. This plant is expected to be built and in operation well before the construction of
the mine facilities.
Period
Return
(years)
APR MAY JUN JUL AGO SEP OCT NOV DIC JAN FEB MAR
2 1.6 2.0 2.4 2.4 3.2 4.1 14.7 24.4 17.3 10.0 5.7 3.9
5 2.7 3.7 5.4 6.1 7.6 7.8 25.0 45.0 41.9 23.0 11.0 6.5
10 3.6 5.3 8.6 11.1 12.9 11.0 31.8 58.7 66.6 35.5 15.6 8.6
25 4.9 8.1 15.0 23.3 24.0 15.7 40.4 75.9 109.0 56.5 22.6 11.4
50 6.0 10.9 22.0 39.8 37.1 19.9 46.7 88.7 149.9 76.2 28.8 13.8
100 7.3 14.3 31.7 67.2 56.3 24.5 53.1 101.4 199.6 99.8 35.7 16.3
Distribution LP LP LP LP LP LN Gumbel Gumbel LN LN LN LN
source: compiled from statistics fluviomtrica DGA - 1950-2007

239

Figure 18-5: 110 kV Overhead Powerline Route (source: Google Earth, June, 2013)

240
Figure 18-6: 220 kV Overhead Powerline Route (source: Google Earth, June, 2013)
18.4.1 Site Electrical Power Distribution
The Vizcachitas main substation is located directly adjacent to the main process plant building.
From here medium voltage electrical power will be distributed to the concentrator and the rest of
the site at either 23 kV or 0.4 kV depending on the final user demand.
Table 18-3 summarizes the substations or transformers required for the distribution network at
220 kV (Cases 1.2, 1.3 and 1.5) and 110 kV (Case 2.2).
Table 18-3: Electrical System Requirements

The substation capacities were calculated considering 30 % extra capacity over the calculated
installed power for each case.
18.4.2 Rocin River Hydro Electric Generation
Los Andes Copper contemplate the construction of a 28.95 MW run of river Hydro Electric Plant.
The Hydro Electric Plant considers a 14-km covered canal with a design flow of 6.5 m3/sec,
leading to a 1.1 km penstock with a 510 m head. The generation unit considers 2 Pelton turbines
with capacities of 4.5 m3/sec and 2.0 m3/sec each. The total capital expenditures are estimated
at US$ 55,897,000 (net of VAT) and include a 110 kV transmission line to connect into the
national grid at the Las Vegas substation.
Case 1.2 Case 1.3 Case 1.3 Case2.2
100: MINE 6,210 42,049 42,049 3,105
200: CRUSHING 1,967 3,902 3,902 951
300: GRINDING 84,512 168,950 168,950 42,804
400: BULK FLOTATION 13,266 26,567 26,567 9,322
450: SELECTIVE FLOTATION 855 1,869 1,869 979
500: TAILING HANDLING 1135 2241 2241 594
600: CONCENTRATE HANDLING 22.2 22.2 22.2 45.1
800: WATER SUPPLY 7.4 7.4 7.4 7.4
900: POWER SUPPLY 14.8 14.8 14.8 14.8
1000: INFRASTRUCTURE 1,173 2,346 2,346 304
TOTAL 109,161 247,969 247,969 58,126
Installed Electric Power (kVA)
AREA

241
The engineering design, layout and capital costs for the Hydro Electric Plant are taken from the
report titled Pre-feasibility Study Rio Rocin Hydro Electric Project dated April 12, 2013 (Carvallo,
2013)
The construction of the Hydro Electric Plant is expected to take place well in advance of the
development of the Vizcachitas Project. The Hydro Electric Plant is shown in figure 18-4 and will
supply power into the grid until the Vizcachitas mine and process plant is constructed.
The power line which is considered in the Hydro Electric Plant to connect to the national grid will
be upgraded to allow for the increased demand from the mine. The cost of the basic power line
has been included in the Hydro Electric Plant initial capital expenditures, and the additional
upgrade expenditures are included at the time of the mining capital expenditures. The mine
capital and technical considerations include the ability to receive power from either the Hydro
Electric Plant or the national grid.
The diversion channel, as shown in Figure 18-2 will run east of the mine and process plant.
Depending on the different mine development cases, the ultimate pits may interfere with the
channel. At that time, the Hydro Electric Plant would switch to process the water flows through
the river diversion tunnel that is required for the development of the mine as further described in
Section 18.3. Additionally, depending on the mine development cases considered, the location
of the waste dumps and the schedule of waste accumulation will require the reinforcement of
certain sections of the diversion channel.
18.5 Process Plant Earthworks
The cubic metres of excavation and fill vary according to phase and case. Estimated values are
presented in Table 18-4.
Table 18-4: Excavation and Fill per Case

Excavation Fill Excavation Fill
(m
3
) (m
3
) (m
3
) (m
3
)
1.2 594,000 467,000 - -
1.3 989,000 778,000 - -
1.5 594,000 467,000 395,597 311,040
2.2 620,000 258,000 - -
Case
Phase I Phase II

242
18.6 Tailings Storage Facility
The mineral extraction processes are grinding and flotation; this process produces copper and
molybdenum concentrates and tailings. The flotation tailings should be chemically benign and
are anticipated to be non-acid generating.
Various disposal options and configurations were considered for the siting of the tailings storage
facility (TSF). Based on field reconnaissance, Alquimia recommended a valley located 23 km
northwest of the process plant, which has an approximate storage volume of 900 Mt. The
location is shown in Figure 18-7.
Table 18-5 shows TSF capacity in years. A secondary TSF location will be identified for any
production exceeding this TSF capacity and cost of development of the secondary TSF has
been included in the capital estimate. There are various possible locations within a 30 km radius
of the proposed TSF.
Table 18-5: TSF Capacity

Proyect Life TSF Life
(Years) (Years)
1.2 40 30
1.3 28 16
1.5 30 18
2.2 40 40
Case

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Figure 18-7: Tailing Storage Facility Location (source: Google Earth, June, 2013)
18.6.1 Tailings Storage Facility Design
The impoundment volume is confined by natural hills and the raised embankment is constructed
as the southern downstream face.
The disposal operation is by means of a raised embankment built of classified tailings material.
Classification is through a cyclone cluster where material is separated into coarse material used
for embankment construction and fine material or slimes, deposited in the tailings impoundment
area.

244

Figure 18-8: Raised Embankment Location (source: Google Earth, June, 2013)
The outer face of the embankment is constructed with 4:1 (H:V) slope in order to optimize the
wall disposal distribution and at the same time meet the safety and stability requirements set by
Chiles National Service of Geology and Mining or Servicio Nacional de Geologa y Minera in
Spanish (SERNAGEOMIN). The internal wall is constructed with 2:1 (H:V) slope. The
embankment crest width will be 30 m.
A rockfill starter dam is planned to ensure there is sufficient capacity for the fine fraction of the
cyclone tailings during normal operation and whole tailings overflow during construction of the
sand dam. The starter dam is anticipated to ensure a minimum deposition period of 20 days,
with a maximum total freeboard of 1.5 m. The upstream face of the starter embankment is
constructed with a 2:1 (H:V) slope, while the downstream face has a 1.75:1 (H:V) slope.
The upstream face of the starter dam is expected to be lined with a HPDE layer to ensure initial
containment of tailings and free water until the tailings beach is established and the decant pool
is pushed to the back of the impoundment.
The starter dam design must ensure embankment stability, considering that this is the point
which concentrates stresses.

245
At the end of the TSF operational life, a footwall will be constructed in order to avoid
embankment material overtopping the design level. This wall is constructed with material similar
to the starter dam, with a trapezoidal section of 45.
18.6.2 Underdrain System
To ensure tailings storage facility stability and avoid embankment liquefaction, a drainage
system is envisioned. Water that drains from the slimes is collected and returned to the process
plant for reuse. The embankment is raised in lifts of compacted, cycloned tailings while the
tailings storage facility is filled with the fine slimes material. As the embankment height
increases, its footprint expands downstream necessitating phased expansion of the underdrain
system.

246
Figure 18-9: Water Reclaim System (source: Google Earth, June, 2013)
18.6.3 TSF Diversion Channel
The TSF is located in a valley so a water diversion channel is required in order to avoid rain and
other fresh water contact with tailings. The design of the channel considers a precipitation level
associated with a return period of 1 in 100 years.
18.6.4 Tailings Transport System
The process plant tailings flow by gravity to the TSF through a HDPE pipeline of about 24.5 km
length, following the ridge that delimits the TSF. Figure 18-10 illustrates the pipeline route
considered.

Figure 18-10: Slurry Pipeline Route (source: Google Earth, June, 2013)
18.6.5 TSF Reclaim Water System
Tailings water will be reclaimed from the TSF from a natural ponding location that is expected to
be on the north edge of the facility. Water reclamation will use a floating pump to deliver the
water to the reclaimed water tank. Drainage embankment water is also discharged to this
reclaimed water tank.

247
Figure 18-9 illustrates this installation.
All reclaimed water is pumped back to the process plant by a pipeline that follows the same
route as the slurry pipeline. This is as illustrated in Figure 18-10. Centrifugal pumps are used for
pumping the reclaimed water back to the plant.
It is anticipated that there will be a significant quantity of water lost to interstitial water retained in
the settled tailings, as well as water lost to evaporation and seepage from the TSF. This has
been accounted for in the project water balance.

18.7 Roads
18.7.1 Access Road
The project site is accessible from the village of Resguardo de Los Patos via a 24 km long and 3
m wide gravel road. This road will be improved and widened to 9 m to allow construction and
capital equipment and ongoing operations supplies to be safely delivered to site.
The road between the TSF and the process plant envisages the improvement of and extension
by 5.22 km of the current Chacrillas Reservoir road, widening it from the current 5 m to 9 m. A
new road of 6.1 km length will be built with the same characteristics to connect with the actual
acces road that also needs to be improved for another 8.4 km. This last section considers a
bridge to cross Rio Hidalgo for light vehicle transfer. Figure 18-11 illustrates the proposed road
access.

248

Figure 18-11: Access Road Network (source: Google Earth, June, 2013)
18.7.2 Site Roads
5,600 metres of onsite roads were considered in this PEA study.

18.8 Concentrate Storage, Loading and Transport
Copper concentrate will be stockpiled in an enclosed storage area of varying capacity for each
case. The concentrate will be loaded into trucks and then transported to a train loading facility
located 55 km to the south-west at the Ferrocarril del Pacfico S.A. railway line. Here
concentrate will be loaded into trains to be delivered to Ventanas Port.
The facility consists of an enclosed building where the copper concentrate, transported by trucks
is discharged into a hopper and then loaded directly to the train by a belt conveyor system.

249
18.9 Ventanas Port Facilities
Copper concentrate will be unloaded at Ventanas port which currently handles copper
concentrate volumes from other mining operations. In 2010, Ventanas handled a total of over
600,000 tonnes of copper concentrate for Anglo American, Codelco and others (source: CESCO
2011). Concentrate storage facilities as well as the ship loading system may need to be
upgraded or expanded. The cost for these facilities was not calculated in this PEA study.
18.10 Site Accommodation
No installation is provided for a permanent camp. Project staff will use daily trasportation from
San Felipe and Putaendo.
The following infrastructure is considered for operations staff:
Dining hall
Change house
Warehouse and laboratories.
18.11 Fuel Storage
Fuel storage consists of a horizontal cylindrical metal tank with 75,000 litre capacity, made of
carbon steel. The storage facility will be located in a bunded area with a spillage containment
capacity of 110 % of the tank volume. The fuel storage area will be clearly marked and will have
a perimeter fence 1.8 m high, and fire extinguishers. The depot will be managed by a fuel
supplier.
18.12 Potable Water Supply
Potable water will be provided in sealed containers by a company approved by the health
authority. Potable water will meet all the requirements of Chilean standard NCh 409.
18.13 Ancillary Site Buildings and Facilities
Various ancillary facilities will be located near the process plant. The buildings and facilities
include the following:
Administration building
Assay and metallurgical laboratory facilities

250
Change house for personnel
First aid or clinic building
Gatehouse at the entrance to site
Concentrator warehouse and an attached workshop building
Potable water system
Sewage treatment plant
Mine ancillary facilities will be located near the primary crusher. These facilities include:
Warehouse with offices
Heavy vehicle workshop
Tire shop
Maintenance and welding shop
Truck wash bay
Fuel storage depot
Effluent treatment facility
Mine explosives storage facility
Various ancillary facilities will be located near the TSF. The buildings and facilities include the
following:
Administration building
Change house for personnel
Gatehouse at the entrance to site
Potable water system
Sewage treatment plant

251
Commercially available packaged sewage treatment plants will be installed at the main
concentrator facilities, the mine support facilities, and TSF. Effluent will need to meet Chilean
regulations for discharge, or undergo additional treatment until it does. Technical details will be
developed during the next phases of project development.

252
19 MARKETING STUDIES AND CONTRACTS
19.1 Introduction & Scope
For this marketing assessment, assumptions are based on metallurgical data with respect to the
copper and molybdenum characteristics of the Vizcachitas concentrates. The comment and
outlook on concentrate marketability and related smelter charges, including treatment, refining,
penalty details, payment timing, metal accountability, and other contract terms, are based on
current market understanding and use of data available in the public domain. As the Project
progresses through the next phases of development, it is recommended that further review be
made of market conditions and conclusions drawn as required.
19.2 Refined Copper Market
In forecasting refined copper supply-demand market, one must recognize the risks of long-term
projections, given the fact that projects have not been committed or are in the possible or
probable stage or at an early stage of construction. This has been particularly evident in recent
times with stalled economic growth and other turmoil, driving copper price down from highs of
close to $4.00 /lb. in 2012 to levels close to $3.1 /lb. at the time of writing this Report. Some
analysts expect that Chinese growth of approximately 7.7 % in 2013 (The World Bank, 2013),
followed by Indian and Brazilian demand will stabilise copper price and that the current decrease
in European demand will tend to reach a neutral demand point.
In recent years, the timeline for mine development has become longer due to more exhaustive
environmental and socio-economic issues and for any major project a lead development time of
8 to 10 years is not unusual. In consequence, the forecasts for the development lead time of
expected projects at various stages in the pipeline present limited potential for supply surprises
on the upside. At the beginning of the current decade, the expectation was that new mine
development would add substantial copper supply to the market, but in practice this did not
happen. Reasons included greater focus on environmental and socio-economic issues and
rising capital and operating costs, which pushed up the copper price requirement to make these
projects viable. This, coupled with the world financial crisis in 2008-2009, all contributed to
project development disruptions.
In the longer run, strong copper demand growth prospects are based on expected resource
intensive use in economies such as China, India and other developing countries, and are
associated with investment in power distribution networks and other infrastructure development.
China today consumes about 40 % of the worlds refined copper, and it is expected to continue
to grow and may rise to over 50 % by 2022.

253
Reflecting the market situation and escalation of production costs, copper prices are currently in
the range of $ 7,000 to 7,500 a tonne ($US 3.125 3.35 / lb.); about three times higher than the
average level through the 1990s.
Prices could remain near current levels as long as production growth continues to under-perform
against the underlying demand trend creating a need to ration supplies. Based on this type of
forecast it seems logical to use a fluctuating copper price looking to the future as there is every
indication that inflation will again become a factor.
Table 19-1: Outlook for the Copper Price

19.3 Copper Concentrate Market Outlook
Global copper concentrate production in 2012 was approximately 13.8 million tonnes of
contained copper or about four fifths of total newly-mined copper production of 16.9 million
tonnes. (source: International Copper Study Group, The World Copper Factbook, 2012)
The balance of 20 % newly-mined copper comes from SX-EW electrowon copper cathode and
other copper-bearing by-products.
Concentrate supplies are expected to increase particularly over 2013 - 2018 as a result of new
projects now in the advanced feasibility and development stage and announced expansions of
operational mines. Figure 19-1 illustrates the supply / demand balance in the coming years.
2013 2014 2015 2016 2017 2018
SocGen (July 2013) 337 311 295 272 295 318
TD Securities (May 2013) 343 325 - - - -
UBS (July 2013) 345 286 - - - -
World Bank (July 2013) 322 320 318 317 316 315
IMF (March 2013) 354 356 358 361 363 363
EIU (July 2013) 339 348 361 370 380 -
Cochilco (July 2013) 327 315 - - - -
Average 338 323 333 330 339 332
Entity
cUSD/lb

254

Figure 19-1: Market Balance 2013 2017 (source: Codelco April 2013 update)
Over the next ten years further increases in mine production and developments are expected in
higher risk countries such as Kazakhstan, Afghanistan and the DRC.
The copper concentrate market has seen recent significant structural imbalances between mine
production and smelting capacities. By the middle of the decade, if all new project and
expansion plans are met, there will be a surplus of concentrates. This, in theory, could last for
several years, increasing smelter Treatment and Refining charges (TC/RCs). Such increasing
charges will also be the result of increased costs on the smelter side.
Imbalances between concentrate supply and demand are not unusual and are heavily influenced
by different lead times to construct for instance mines outside China and smelters in China,
where the latter can be brought on line in three to four years whilst mines generally have a
longer development lead time.

255
Custom smelter capacity is expected to grow significantly in the latter part of the decade to meet
increased refined copper demand, particularly in China and India. More than fifty percent of
global custom smelting capacity is expected will be located in China in 10 years time.
Domestic demand for copper in China and India as well as elsewhere in Asia is pointing towards
new smelting capacity largely being built in these areas. The effect will be that that smelter
development is market driven to meet such domestic demand.
19.4 Treatment and Refining Charges
The following long-term smelter charges have been assumed for evaluation of Vizcachitas
concentrates.
Table 19-2: Concentrates - Commercial Terms Assumptions (Coffey, June, 2013)

Notes:
1. It is often the case that where a percentage payment for payable metals is applied it is often
subject to a minimum deduction. In the case of copper a 96.5 % is applied, for concentrates
grading below 28.57 % Cu a further 1 % of concentrate grade is deducted.
It should be noted that delivery of concentrates is on the basis of CIF-FO (Cost, Insurance and
Freight, Free Out) smelter ports. Therefore the mine must bear the cost of delivering the
concentrates to the receiving smelters port, and the buyer is responsible for unloading the cargo
and the cost thereof.
Payable Metals Recommendation
Copper payable (%) ( min. ded. 1unit) 96.5
Commercial terms Recommendation
Concentrate TC ( US$/dmt ) 85
Copper RC ( US$/lb payable ) 0.085
Copper PP (%) 0
Ocean Freight ( US$/dmt ) 76

256
20 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT
20.1 Introduction
The environmental studies and permitting that are necessary to advance the Project can be
divided into those studies that are required to complete the pre-feasibility and feasibility studies
and those that will be needed to construct and operate the mine.
It will be necessary to carry out further infill, metallurgical and condemnation drilling to complete
the pre-feasibility and feasibility studies. To carry out this drilling an Environmental Impact
Statement or Declaraciones de Impacto Ambiental in Spanish (DIA) is very likely to be
required.
For the construction and operation of the mine, further environmental studies and permissions
would be necessary. These would include an Environmental Impact Study or Estudio de
Impacto Ambiental in Spanish (EIA), Environmental sectorial permits and an approved mine
closure plan will also be required.
20.2 Historical Environmental Information
As part of the Initial Feasibility Study completed by General Minerals, an environmental
baseline was developed in 1998 by Ingeniera y Geologa Dos Limitada (INGEDOS). The 169-
page report studied the vegetation, vertebrate terrestrial animals, invertebrate aquatic animals
and vertebrate aquatic animals. A total of 169 plant species were identified of which 69 % are
indigenous. Out of a possible total of 243 vertebrate species, only 56 were identified in the area
of the study. This low ratio is probably due to the pre-existing roads in the area and the fact that
the study was completed at the end of winter. Two non-indigenous fish species were identified in
the Rocin River (INGEDOS 1998).
In 2007, an environmental baseline study was carried by Jaime Illanes y Asociados to support a
DIA submitted in 2008. The study identified 49 species of flora and 2 species of reptile in the
area. Bibliographic review estimated the presence of 24 species of birds and 8 species of
mammals, 6 of which have conservation issues, including Lama Guanicoe.
A DIA was submitted by Los Andes Copper on February 22, 2008 to the environmental authority
at that time, Chiles National Environmental Commission or Corporacin Nacional del Medio
Ambiente in Spanish (CONAMA). CONAMA denied the permit on October 23, 2008 based on 4
main points:
There was no adequate road between Casablanca and Resguardo de Los Patos

257
The project contingency plan was inadequate
The river crossings had been made without the correct DGA approvals
The project may unduly impact the touristic value of the area.
Los Andes Copper has indicated that the reasons given in 2008 have either been addressed or
are no longer valid. Los Andes Copper does not foresee major problems when submitting an
updated DIA.
20.3 Legal Framework for Environmental Studies
Chile has well defined processes and frameworks within which environmental impact studies
must be developed. A summarized list of the key legislation which must be considered is as
follows:
Political Constitution of the Republic
The regulations of the Environmental Evaluation Department or Servicio de Evaluacin
Ambiental in Spanish (SEA)
General environmental bases, including International Labour Organization 169,
participation of indigenous communities
Environmental Regulations for:
o Emissions to the atmosphere and air quality
o Liquid and solid waste
o Dangerous substances
o Cultural heritage
o Labour conditions
o Transport safety.
In addition to the Environmental Qualification Resolution or Resolucin de Calificacin
Ambiental in Spanish (RCA), a project must also comply with a number of environmental and
sectorial permits before it can operate.
Sectorial environmental permits are those permits or resolutions issued by a State
Administration entity, which because of their environmental content are listed in the

258
Environmental Impact Assessment System regulations. These permits must be issued for all
projects and activities submitted to the SEA.
Within the sectorial permits the key permissions are those of SERNAGEOMIN and the
Department of Water or Direccin General de Aguas in Spanish (DGA). Both of these permits
can take up to 12 months or more to approve and this should be accounted for in project
planning.
DGA approvals are important when scheduling the permitting process for the Project, at least
two permits from the DGA are required: approval of the water works (tailings dam) and water
course intervention (Rocin River diversion tunnel).
SERNAGEOMIN provides the overall blanket operating permit. The sectorial permit approval
requires the completion of a mine closure plan.
Environmental baseline studies will meet the current Chilean legislation including the
International Labour Organisation recommendation 169, which defines the rights and levels of
participation required from any indigenous stakeholders within the direct or indirect impact area
of the Project. The Chilean government has National Indigenous Development Corporation or
Corporacin Nacional de Desarrollo Indgena in Spanish (CONADI) which works with both the
property owner and the local indigenous population to ensure that their rights and participation in
the environmental permitting process are correctly considered.
20.4 Future Environmental Studies
These studies can be subdivided up into those studies required to complete the pre-feasibility
and feasibility studies and those that will be required to construct and operate the mine.
20.4.1 Studies Required to Complete the Pre-feasibility and Feasibility Studies.
To complete a pre-feasibility or feasibility study further drilling and possible bulk sampling will be
needed. Under Chilean law to carry out intensive drilling to define projects as opposed to
exploration drilling it is necessary to submit a DIA to the SEA for approval. Los Andes Copper
will prepare and submit a DIA for the proposed drilling that needs to be carried out in the areas
of the mine, plant and infrastructure.
20.4.2 Studies Required to Construct and Operate the Mine.
Base Line Studies
The formal base line studies and environmental data compilation around the Property must be
extended or initiated in order to support an EIA application. The base line studies must be

259
carried out over at least one full year to ensure that the fauna and flora can be studied in all
seasons. For this reason, these studies would normally be completed during pre-feasibility and
feasibility phases. The studies correspond mainly to existing information review, analysis and
development of documents to comply with environmental regulations. In addition to natural
environmental data collection, the engineering completed during the pre-feasibility and feasibility
studies is used to support project robustness and detail specific engineering requirements
needed by the environmental services. Los Andes Copper will retain the services of a
recognised independent environmental consultancy to complete the baseline studies and all
associated work required to prepare the environmental impact assessment application.
Gap Analysis
Gap analysis will gather all environmental background information available for the Project. This
identifies the studies needed to be completed, updated or revised according to the
requirements o f t h e different governmental authorities regulations or requirements.
It is important that Los Andes Copper characterizes the local and regional hydrological,
hydrogeological and water quality conditions i n compliance wi t h Chilean regulations. This
will involve field activities such as drilling of wells or sample taking from surface water
sources. Water supply permitting issues will require addi t i onal activities related with the
review of legal information and comparing it with engineering needs.
Environmental Permitting Conceptual Requirements
Los Andes Copper will need to identify the environmental permits associated with the different
potential impacts for the whole lifecycle of the Project (design, construction, operation, closure).
Environmental Baseline Update/Completion
After carrying out the gap analysis, further studies may be identified for components of the
Environmental Baseline (including: flora, fauna, archaeology and others). Potential project
impacts will need to be evaluated to determine which studies must be completed and which
require additional information. Los Andes Copper will have to consider fieldwork gathering data
of the environmental components and some office work to develop the reports for the studies
which will be part of the file to be presented to the SEA.
Closure and Abandonment Stage
In Chile, there are clear and precise rules regarding the closure of mining facilities (Regulation
on Mine Safety No. 72. section 5), which indicate the activities required to carry out the closure
of a mining project. The following summarises the objectives of the Regulation:

260
Ensure that the remaining facilities will not affect human health or degrade the
environment.
Ensure maintenance of physical stability and that the areas affected by mining activities
are in stable condition at mine closure.
Ensure the maintenance of stability associated with chemicals in the long term, in order to
reduce effects on biological diversity and to avoid endangering public health and safety.
Ensure environmental components, both surface and underground are not affected as a
result of the closure (water, air, soil, etc.)

261
21 CAPITAL AND OPERATING COSTS
The capital and operating cost estimates were developed in Chilean Pesos (CLP) and United
States dollars (USD) according to source currency of costs. The exchange rate (CLP/USD) used
is 480. All costs are estimated as of the Effective Date of this Technical Report. All cost
projections are presented on a nominal dollar basis.
21.1 Capital Cost Estimate
Capital cost estimates were prepared as detailed in Section 17.7 and are composed of the
following:
Direct cost of construction and assembly: Acquisitions of equipment supply, labour,
auxiliary equipment for construction and building materials are considered.
Indirect project costs: Transportation and equipment insurance, general spare parts,
vendors representatives, detailed engineering, EPCM, start up and owner costs are
considered.
Contingency estimation based on Direct Cost plus Indirect Cost.
Sustaining capital is defined as that required to maintain operations and may include
capital spent on expansion or new infrastructure items such as tailings dam.
Deferred capital is that required to complete an expansion in the mine and process plant.
Table 21-1 summarizes initial, deferred and sustaining capital cost requirements.

262
Table 21-1: Capital Cost Estimate (Nominal values)

Direct costs were estimated using:
Material take-offs (MTOs) based on preliminary layouts, process flow diagrams, and
topographic information
Historical data
Allowances based on similar projects
The capital expenditures associated with the construction of the Hydro Electric Plant are US$
55,897,000 (net of VAT). The cash flow generated by such plant prior to and during the
construction of the mine Project - net of US$ 13,590,000 (net of VAT) of assumed redundant
investments that the mining project would have to incur - is expected to exceed the capital
Deferred
Capital Cost
kUSD
Direct Cost 1,278,120 1,845,496 1,278,095 912,035 695,760
Diversion Rocin River 86,077 86,077 86,077 86,077 0
Access 16,105 19,325 16,105 14,817 9,660
Bridges 50,000 50,000 50,000 50,000 0
General Facilities 41,450 50,343 39,589 37,089 16,660
Mine 424,305 566,776 372,930 288,655 203,397
Process Plant 329,506 626,070 335,879 205,738 305,789
Tailings Storage Facility 39,276 56,299 39,496 32,237 7,052
Tailings Transport System 96,192 117,815 96,192 74,311 90,370
Water Reclaim System 51,876 73,780 51,706 40,789 51,706
Water Supply System 12,956 22,351 13,461 6,374 11,125
Power Supply System 130,376 176,660 176,660 75,948 0
Indirect Costs 264,539 381,971 264,534 188,768 144,005
Contingency 462,798 668,240 462,789 330,241 251,929
Sustaining Capital 538,313 717,926 591,049 193,442 0
Tailings Storage Facility 39,276 67,654 50,034 0 0
Tailings Transport System 96,192 141,578 121,858 0 0
Water Reclaim System 51,876 88,661 65,502 0 0
Mine 350,968 420,033 353,655 193,442 0
Total Capital Costs 2,543,768 3,613,633 2,596,466 1,624,486 1,091,694
Description
Initial Capital Cost
kUSD

263
expenditures of the Hydro Electric Plant. As a result, the capital costs associated with the Hydro
Electric Plant have not been included in the capital cost of the mine Project.Indirect Costs
Table 21-2 shows the main estimation basis by area and Table 21-3 shows unit construction
costs considered.
Table 21-2: Estimation Basis by Area

MTO Price
Mine
Mine Works Calculated Calculated/Factorized
Mine Equipment Calculated Data Base
Workshops Expert Judge Data Base
Infrastructure Expert Judge Calculated/Factorized
Building Expert Judge Data Base
Power Supply Calculated Data Base
Process Plant
Process Equipment Calculated Data Base
Infrastructure Factorized Data Base
Building Factorized Calculated/Factorized
Civil Works Factorized Data Base
Power Supply Calculated Calculated/Factorized
Tailings Storage Facility
Civil Works Calculated Data Base
Piping Calculated Calculated/Factorized
Infrastructure Calculated Calculated/Factorized
Contour Channels Calculated Data Base
Building Factorized Data Base
Support Equipment Factorized Data Base
Power Supply Calculated Calculated/Factorized
Infrastructure
Power Supply Calculated Data Base
Mine/Plant Water Supply Calculated Calculated/Factorized
Train Loading Station Factorized Calculated/Factorized
Contour Channels Factorized Calculated/Factorized
Building Factorized Data Base
Support Equipment Factorized Data Base
Infrastructure Expert Judge Expert Judge
Area
Cost Estimation

264
Table 21-3: Unit Construction Values

21.1.1 Indirect Costs
Lump sum allowances or factors have been used to calculate indirect costs as is typical for a
PEA. At this level, many of the resourcing and contract strategies are not defined, so reasonable
and customary assumptions have been made based on experience on similar projects. Table
21-4 shows detailed indirect costs.
Table 21-4: Indirect Costs Detail (Nominal values)

21.1.2 Contingency
Contingency is an allowance to cover unforeseeable costs that may arise during project
execution, which are within the scope-of-work, but cannot be explicitly defined or described at
the time of the estimate due to lack of information. It is assumed that contingency will be spent.
Contingency does not cover scope changes or project exclusions. After an assessment by
Coffey of project confidence versus uncertainty by area, an overall average contingency of 30 %
Area Price Unit
Concrete 850 US$/m
3
Metallic Structure 7,000 US$/t
Piping 6 US$/kg
Rock Excavation 15 US$/m
3
Soil Excavation 5 US$/m
3
Filling 10 US$/m
3
kUSD
Indirect Costs
Freight and Insurance 30,675 44,292 30,674 21,889 16,698
Import Duties 15,337 22,146 15,337 10,944 8,349
Spare Parts 25,562 36,910 25,562 18,241 13,915
Vendor Representatives 6,710 9,689 6,710 4,788 3,653
EPCM 132,573 191,424 132,570 94,601 72,168
Start Up 28,119 40,601 28,118 20,065 15,307
Owner Cost 25,562 36,910 25,562 18,241 13,915
Total Indirect Costs 264,539 381,971 264,534 188,768 144,005
Initial Investment
Deferred
Investment
Description
kUSD

265
has been included in the initial capital cost. This contingency is based on the level of definition
that was used to prepare the estimate.
21.1.3 Accuracy
This estimate has been developed to a level sufficient to assess/evaluate the project concept,
various development options, and the overall potential project viability. After inclusion of the
recommended contingency, the capital cost estimate is considered to have a level of accuracy of
+/-35 %. This is based on the level of contingency applied, the confidence levels of the authors
in their respective estimates, and an assessment comparing this estimate to standard accuracy
levels on PEA estimates.
21.1.4 Estimate Exclusions
The following items are not included in the capital estimate:
Costs incurred prior to completion of a Feasibility Study (FS)
All Owners taxes, including any financial transaction tax, withholding tax, or value-added
tax (VAT)
Future foreign currency exchange rate fluctuations
Interest and financing costs
Escalation beyond second-quarter 2013
Risk due to political upheaval, government policy changes, labor disputes, permitting
delays, weather delays, or any other force majeure occurrences.
21.2 Operating Cost Estimates
Operating costs have been estimated for the operating areas of Mining, Process Plant,
Infrastructure and Administration. Costs were reported under subheadings related to the function
of each of the areas identified.
The operating cost estimates were based on energy prices of 0.12USD /kWh for electricity and
1.20 USD/l for diesel fuel. Table 21-10 summarizes annual operating cost by area, as well as
average unit operating cost. Labour costs for mine and process plant consider only up to
Superintendent level and all superior positions are considered as administration costs.

266
The operating costs are considered to have accuracy of 35 %, based on the assumptions
listed in this section of the Report. All unitary operating costs are expressed in processed
tonnes.
All estimates have been completed for Life of Mine or a maximum of 40 years of operation.Table
21-5 shows estimation period by case.
Table 21-5: Estimation Period by Case

Table 22-6 and Table 22-7 summarize operating costs requirement.
Table 21-6: Total Operating Costs (Nominal values)

Table 21-7: Unit Operating Costs ($/ t plant feed; nominal values)

21.2.1 Mining Operating Cost
Mine operating costs are based on owner mining and cover the following:
LOM
(40 years)
LOM
(28 years)
LOM
(30 years)
40 years
Mine 3,152,883 3,701,566 3,957,754 1,774,595
Plant 9,204,176 12,052,449 12,128,101 4,642,347
Infraestructure 660,817 726,499 815,257 277,156
Administration 1,294,721 1,593,319 1,628,647 655,609
Total 14,312,598 18,073,832 18,529,761 7,349,707
Description
kUSD
Mine 2.51 2.22 2.38 2.84
Plant 7.32 7.23 7.28 7.42
Infraestructure 0.53 0.44 0.49 0.44
Administration 1.03 0.96 0.98 1.05
Total 11.38 10.85 11.12 11.75
Description
USD / tonnes

267
Pit operations: Drilling, blasting, loading, and hauling
Construction and maintenance of: mine haul roads, sumps, and safety berms
Placement of waste rock in the WRSFs
Operating and maintenance labour
Mine department supervision and technical services
Crushing waste rock to supply aggregate for road surfacing and blast-hole stemming; and
other earthworks as may be required for day-to-day mining operations
The mine production schedule and equipment unit productivity estimates were used to calculate
operating shifts and manpower requirements, which in turn were used to derive mine operating
costs. Exploration costs are not included in the operating cost estimates.
Unit operating costs for major equipment include: labour, energy, diesel, lubricant consumption,
tyres, materials, spare parts, third party services and others. These operating costs were
adjusted for local labour rates and supply costs, while tracking recent experience for projects
with similar fleets.
Table 21-8 and Table 21-9 show mine operating costs by expense item.
Table 21-8: Mine Operating Costs by Expense Item (Nominal values)

Labour 424,720 372,220 444,540 369,415
Diesel 1,147,536 1,159,016 1,507,693 612,099
Energy 0 115,444 0 0
Lubricant 36,471 33,346 35,726 21,313
Tyres 257,252 372,891 242,702 22,830
Materials 49,333 38,361 72,370 26,610
Spare parts 216,138 221,183 233,279 165,239
Third party services 610,188 905,216 905,216 325,620
Other 411,246 483,888 516,229 231,469
Total 3,152,883 3,701,566 3,957,754 1,774,595
Description
kUSD

268
Table 21-9: Mine Unit Operating Costs by Expense Item (Nominal values)

21.2.2 Process Plant Operating Cost
Process plant operating costs were developed covering the following unitary operations:
Primary crushing and stockpile
Grinding
Copper-molybdenum bulk flotation
Molybdenum flotation
Thickening of concentrates and tails
Filtering
Concentrates handling
Unit operating costs incorporate: labour, energy, materials, spare parts, third party services and
others. These operating costs were adjusted for local labour rates and supply costs, while
tracking recent experience for projects with similar equipment. Table 21-10 and Table 21-11
show operating costs for the process plant by expense item.

Labour 0.34 0.22 0.27 0.59
Diesel 0.91 0.70 0.90 0.98
Energy 0.00 0.07 0.00 0.00
Lubricant 0.03 0.02 0.02 0.03
Tyres 0.20 0.22 0.15 0.04
Materials 0.04 0.02 0.04 0.04
Spare parts 0.17 0.13 0.14 0.26
Third party services 0.49 0.54 0.54 0.52
Other 0.33 0.29 0.31 0.37
Total 2.51 2.22 2.38 2.84
Description
USD / tonnes

269
Table 21-10: Process Plant Operating Cost by Expense Item (Nominal values)

Table 21-11: Process Plant Unit Operating Cost by Expense Item (Nominal values)

21.2.3 Infrastructure and Administration
Infrastructure operating costs were developed considering the following areas:
Tailings storage facility
Tailings transport
Water supply
Power supply
Administration buildings
Others
Labour 1,187,944 1,183,633 1,225,937 701,166
Energy 2,617,144 3,776,912 3,775,570 1,185,271
Materials 2,888,904 3,818,655 3,827,540 1,429,605
Spare parts 1,067,785 1,425,282 1,435,288 566,629
Third party services 983,454 1,259,977 1,270,750 517,961
Other 458,945 587,989 593,017 241,715
Total 9,204,176 12,052,449 12,128,101 4,642,347
kUSD
Description
Labour 0.94 0.71 0.74 1.12
Energy 2.08 2.27 2.27 1.90
Materials 2.30 2.29 2.30 2.29
Spare parts 0.85 0.86 0.86 0.91
Other 0.36 0.35 0.36 0.39
Total 7.32 7.23 7.28 7.42
Description
USD / tonnes

270
Table 21-12 and Table 21-13 show infrastructure and administration costs by expense item.
Table 21-12: Infrastructure and Administration Operating Costs by Expense Item (Nominal values)

Table 21-13: Infrastructure and Administration Unit Operating Costs by Expense Item (Nominal values)

21.2.4 C-1 Cash Costs (Net of credits)
The C-1 cash costs were calculated using the economic model cash flow forecast values:
Total operating costs
Royalty costs including Mining Royalty and third party NSR
Administration 1,347,527 1,675,543 1,719,310 714,537
Infrastructure 608,011 644,275 724,595 218,228
Labour 75,109 59,341 68,193 36,486
Energy 299,014 342,033 384,652 82,106
Materials 0 0 0 0
Spare parts 131,440 138,461 154,717 55,522
Third party services 69,851 71,209 79,795 30,077
Other 32,597 33,231 37,238 14,036
Total 1,955,538 2,319,817 2,443,905 932,765
Description
kUSD
Administration 1.07 1.01 1.03 1.14
Infrastructure 0.48 0.39 0.43 0.35
Labour 0.06 0.04 0.04 0.06
Energy 0.24 0.21 0.23 0.13
Materials 0.00 0.00 0.00 0.00
Spare parts 0.10 0.08 0.09 0.09
Other 0.03 0.02 0.02 0.02
Total 1.55 1.39 1.47 1.49
Description
USD / Processed tonnes

271
Treatment costs, refining costs, and transportation costs (i.e., third party rail fee, port
handling, and ocean freight)
Revenue from molybdenum
To calculate the cash cost per pound of copper, total expenses (operating, NSR / royalty, and
TCs, RCs, and transportation) less total revenue from Mo were divided by the number of pounds
of copper to be sold over life of mine. Average life of mine cash cost are shown in Table 21-14.
Table 21-14: Average Cash Costs

Operating Costs kUSD 14,312,598 18,073,832 18,529,761 7,349,707
NSR kUSD 418,023 532,994 532,835 219,906
Royalty kUSD 235,131 302,604 276,190 120,041
TC / RC kUSD 2,618,882 3,334,422 3,333,947 1,402,102
Transportation kUSD 754,446 960,579 960,442 403,917
Total Cash Cost w/o Credits kUSD 17,584,634 22,243,853 22,672,733 9,091,756
Molybdenum Credit kUSD 2,794,709 3,598,848 3,593,860 1,287,605
Total Cash Cost w/ Credits kUSD 14,789,925 18,645,004 19,078,873 7,804,152
Total Copper to be Sold Mlb 8,671,793 11,041,133 11,039,560 4,642,722
Average Cu Cash Cost w/o Mo Credit USD/lb 2.03 2.01 2.05 1.96
Average Cu Cash Cost w/ Mo Credit USD/lb 1.71 1.69 1.73 1.68
Unit Description

272
22 ECONOMIC ANALYSIS
The following section is partly based on Inferred Mineral Resources that are considered too
speculative geologically to have economic considerations applied to them that would enable
them to be categorized as Mineral Reserves, and there is no certainty that the PEA projections
based on these Mineral Resources will be realized.
The results of the economic analyses discussed in this section represent forward-looking
information as defined under Canadian securities law. The results depend on inputs that are
subject to a number of known and unknown risks, uncertainties and other factors that may cause
actual results to differ materially from those presented here. Some of the information that is
forward-looking includes, but is not limited to:
Mineral Reserve estimates
Assumed copper price
The proposed mine and process production plan
Projected recovery rates
Infrastructure costs
Ability to obtain sufficient process water to support planned project activities
Ability to obtain sufficient electrical power to support planned project activities
Ability to permit the Project, in particular the assumption that an environmental permit
allowing mine production will be approved by the appropriate Chilean authorities.
22.1 Methodology Used
Coffey has estimated the Projects net present value based on a discounted cash flow model.
Using the mine plan as input, the model calculates annual quantities of metal production and
associated revenues, and the capital, operating and other costs to sustain the production.
The model considers closure costs, committed as required by the Chilean legislative authorities
(Law 20.551, see http://www.leychile.cl/Navegar?idNorma=1032158) and also where applicable
includes a valuation for remaining copper in the ground of 13.75 cUS/lb. Cu. Closure costs for
each option considered have been calculated as 5 % of the total initial direct capital costs and

273
where an expansion has been considered a further 5 % of the direct capital assigned to process
plant capital cost has been added.
Chilean legislation allows that the estimated cost for closure can be guaranteed by:
Cash lodged in a bank account
Bank guarantee or
Standby Letter of Credit issued by a Bank with a minimum of A rating
The model has assumed that one of the latter 2 mechanisms will be used and has applied the
estimated closure costs in the last year of operation and two years post closure.
22.2 Financial Model Parameters
The base-case discount rate is 8 %. Chile is a politically stable country and the Vizcachitas
Project has the same technical features as many other projects or operations in Chile. The major
sources of financial uncertainties are metal price and cost escalation.
NPV has been calculated to the annual period prior to initial mining capital expenditure,
considered as Period 1.
The exchange rate is not a direct input in the financial model since all the input costs are
converted to United States dollars. However, a significant part of the cost will actually be in
Chilean pesos (CLP) and Coffey applied an exchange rate of 480 pesos per dollar in the cost
estimation.
Since the analysis is based on a cash flow estimate, it should be expected that actual economic
results might vary from these results. The PEA has been completed to a level of accuracy of
35 %. The PEA is not a preliminary feasibility study or feasibility study as defined by the
NI 43-101 guidelines.
Economic parameters used for the evaluation are shown in Table 22-1.

274

Table 22-1: Main Economic Parameters

22.3 Taxes and Royalties
The financial results are presented on a pre-income tax basis throughout this document.
However, the third party NSR has been deducted as well as the Mining Royalty Tax. An after-tax
analysis of the financial results for the Project is presented in Section 22.7.4.
Following is a summarized description of the Chilean income tax code applicable to mining
companies.
22.3.1 Income Tax
The corporate income tax legislation provides for a system divided as follows:
First Category Tax
First Category Tax is due on income derived from commercial, industrial and agricultural
activities; mining, fishing and other extractive activities; investment; and real estate. The tax rate
is 20 % and affects all taxpayers which carry out these activities.
Additional Tax (Impuesto Adicional)
This tax operates as a withholding tax and affects, among others, Chilean-source income
withdrawn or remitted abroad to non-residents or non-domiciled individuals, companies or other
entities organised abroad with or without a permanent establishment in Chile in the form of
branches, offices, agencies or representatives. Dividends paid to the shareholders not domiciled
or resident in Chile are subject to an additional withholding tax on distribution at a rate of 35 %.
However, if the distributed amounts had been subject to First Category tax, a 20 % credit is
given against the additional tax. The additional tax must be withheld by the corporation. The
Description Value Unit
Cu Price 275 cUSD/lb
Mo Price 13.6 USD/lb
Estimate Basis 3rd Qtr 2013 US$
Inflation None ---
Currency Fluctuation None ---
NSR 1.87 %
IVA (VAT) Excluded ---

275
same tax procedure is applicable on remittances of profit to partners or profit withdrawn by
individuals not domiciled or resident in Chile.
Depreciation
Depreciation on fixed assets, except for land, is tax deductible by the straight-line method based
on the assets useful life in accordance with the guidelines of the Internal Revenue Service
(IRS), computed on the restated value of the assets. A shorter lifespan has been set by the
Internal Revenue Service to apply to fixed assets purchased after 2003. However, the taxpayer
may opt for accelerated depreciation for new assets when acquired locally, or new or used
assets when imported, with useful lives of over five years. For this purpose, the assets will be
assigned useful lives equivalent to one-third of the normal, eliminating fractions of months.
Taxpayers may discontinue the use of the accelerated method at any time but may not return
again to the accelerated method. The difference between accelerated and straight-line method is
that the latter will not deduct the taxable profit that can be withdrawn by partners or distributed to
shareholders. Public document available from SII includes the straight-line and accelerated
depreciation schedules for different asset categories.
No allowance is made for amortisation of intangible assets such as goodwill, patents,
trademarks, etc. Depletion is not tax deductible.
Stock/Inventory
The costing of goods sold or production materials and supplies consumed are based on the first-
in, first-out (FIFO) basis, although the average method may be elected. The method adopted
determines the basis for the valuation of the closing inventory. The valuation so determined is
however, adjusted for the manner stipulated for the annual monetary correction procedures.
Dividends
Dividends received from Chilean corporations are exempt from First Category tax. There is no
distinction in Chile between dividends and inter-company dividends. A dividend in kind as such
does not exist. Dividends are necessarily expressed in cash, notwithstanding the fact that the
company may distribute certain assets corresponding in value to the dividend amount. Stock
dividends in the form of bonus shares or increases in the par value of existing shares are not
considered income for tax purposes.
Interest Deductions
Generally, interest accrued or paid in the financial year is a deductible expense, provided that it
has been incurred in connection with loans related to the business.

276

Losses
Losses incurred in the fiscal year are deductible. Furthermore, there is no limit on carry forward
of losses. If the enterprise has taxable retained profit, losses must be carried back first. There
are no loss carry-back provisions, nor is it possible to group profitable and unprofitable affiliates
for tax purposes.
Foreign Sourced Income
Non-domiciled or non-resident corporations are only subject to income taxes on their Chilean-
sourced income. If the domestic corporation receives amounts in excess of the book value of an
investment when a foreign subsidiary is liquidated, these monies are considered income subject
to regular taxes. From 2012 on, the income received or accrued from derivatives such as
forwards, futures, swaps and options, by persons or entities without domicile or residence in the
country, is not affected by income tax, except those arising from derivatives that are settled by
physical delivery of shares or rights in companies incorporated in Chile.
Interest payments financial institutions not domiciled in Chile are subject to an additional
withholding tax of 4 %.
22.3.2 Mining Royalty Tax
All properties are subject to statutory obligations to the Chilean Government in the form of a
Mining Royalty Tax or Impuesto a la Minera in Spanish (IEM). This tax was introduced in 2006
and amended in 2010, and is applied against the collective operating (mining) profits of all the
operating units. The tax rate is calculated on a step scale on the basis of fine copper equivalent
sales:
0 to 12,000 t copper equivalent: No tax applied
12,001 to 50,000 t copper equivalent: 0.5 % to 4.5% of the Mining Operating Income
according to the scale showed in Table 22-2
More than 50,000 t copper equivalent: A different scale applies that starts at 5% of the Mining
Operating Income for Mining Operating Margins of less than 35 % up to 34.5 % for Mining
Operating Margins in excess of 85 %. This scale is shown in Table 22-2 and Table 22-3.

277

Table 22-2: Mining Royalty Tax Scale for Mining Exploitation under 50,000 t of Equivalent Copper

Table 22-3: Mining Royalty Tax Scale for Mining Exploitation over 50,000 t of Equivalent Copper

The Mining Operating Income on which this tax is applied is determined following certain specific
rules. Certain expenses such as losses from past periods, accelerated depreciation of fixed
assets, etc. are not allowed for this purpose.
The Mining Operating Margin is determined as a ratio of the Mining Operating Income to the
mining operational revenues.
Marginal tax
from to %
0 12,000 0.0
12,001 15,000 0.5
15,001 20,000 1.0
20,001 25,000 1.5
25,001 30,000 2.0
30,001 35,000 2.5
35,001 40,000 3.0
40,001 50,000 4.5
Cu Eq (t)
Marginal tax
from to %
0.0 35.0 5.0
35.0 40.0 8.0
40.0 45.0 10.5
45.0 50.0 13.0
50.0 55.0 15.5
55.0 60.0 18.0
60.0 65.0 21.0
65.0 70.0 24.0
70.0 75.0 27.5
75.0 80.0 31.0
80.0 85.0 34.5
Operating Profit (%)

278
22.4 Production Summary
Data from the mine production schedule developed was used as the basis for the process
production schedule summarized in Table 22-4 and detailed by year in Table 22-5.
Table 22-4: Production Summary

Total
capacity
ktpd Cu Mo Cu Mo
1.2 88 13,111,528 215,917 3,933,459 101,502
1.3 176 16,693,910 278,044 5,008,173 133,461
1.5 88 - 176 16,691,531 277,658 5,007,459 133,276
2.2 44 7,019,676 99,479 2,105,903 47,750
Case
Concentrate Produced
(t)
Fine Metal Produced
(t)

279
Table 22-5: Production Detail by Year

Cu
Mo
Cu
Mo
Cu
Mo
Cu 65,123
Mo 721
Cu 222,204 292,366 266,520 229,997
Mo 2,079 2,760 2,517 2,227
Cu 481,853 637,338 462,845 270,389
Mo 3,960 6,238 4,454 1,979
Cu 476,150 897,178 466,646 211,939
Mo 4,454 10,890 4,454 2,227
Cu 423,878 828,749 425,779 186,278
Mo 7,425 11,879 5,940 1,733
Cu 421,027 701,395 414,374 191,506
Mo 5,446 9,900 5,940 1,979
Cu 404,870 634,867 750,816 205,762
Mo 5,446 8,910 8,910 2,475
Cu 376,358 612,058 703,296 208,613
Mo 6,435 9,900 8,910 2,723
Cu 370,656 600,653 634,867 207,662
Mo 5,446 9,900 9,900 2,723
Cu 331,690 655,776 615,859 205,286
Mo 3,960 10,890 9,900 2,475
Cu 315,533 606,355 623,364 204,811
Mo 3,465 11,879 8,908 2,723
Cu 314,582 644,371 630,966 203,861
Mo 4,454 5,940 9,898 2,971
Cu 312,682 655,776 623,364 198,634
Mo 5,940 7,921 9,898 2,723
Cu 312,682 636,768 644,270 186,278
Mo 5,940 11,879 9,898 2,723
Cu 312,682 577,843 634,867 179,150
Mo 5,940 12,871 7,921 2,723
Cu 308,880 551,232 619,661 176,299
Mo 6,929 12,871 10,890 2,723
Cu 306,979 551,232 577,843 175,824
Mo 7,425 10,890 10,890 3,217
Cu 322,186 583,546 560,736 176,774
Mo 2,971 8,910 11,879 3,465
Cu 310,780 587,347 562,637 175,824
Mo 3,465 7,921 11,879 3,960
Cu 339,293 608,256 587,347 167,270
Mo 3,465 7,921 12,871 4,208
1
2
3
18
19
20
21
22
12
13
14
15
16
17
6
7
8
9
10
11
Period Production
Concentrate Produced (t)
0
4
5

280
Production Summary (continuation)

Cu 352,598 613,958 610,157 168,221
Mo 3,465 6,929 8,910 3,217
Cu 330,739 619,661 602,554 170,122
Mo 4,454 9,900 6,929 1,979
Cu 312,682 593,050 613,958 170,597
Mo 5,446 15,840 7,921 1,733
Cu 318,384 515,117 623,462 172,022
Mo 5,940 12,871 10,890 1,979
Cu 320,285 585,446 560,736 172,973
Mo 6,929 11,879 13,860 1,979
Cu 300,326 610,157 532,224 171,547
Mo 7,921 11,879 12,871 2,227
Cu 274,666 600,653 602,554 167,746
Mo 8,910 6,929 13,860 2,475
Cu 273,715 478,805 587,347 160,618
Mo 6,929 10,448 9,900 2,723
Cu 265,162 213,957 644,371 155,866
Mo 2,971 11,100 7,921 2,971
Cu 275,616 348,162 152,539
Mo 2,971 10,377 3,217
Cu 301,277 159,949 151,114
Mo 4,454 8,363 2,723
Cu 301,277 151,114
Mo 4,454 2,723
Cu 301,277 151,114
Mo 4,454 2,723
Cu 301,277 151,114
Mo 4,454 2,723
Cu 301,277 151,114
Mo 4,454 2,723
Cu 330,739 154,915
Mo 6,435 1,733
Cu 330,739 154,915
Mo 6,435 1,733
Cu 330,739 154,915
Mo 6,435 1,733
Cu 330,739 154,915
Mo 6,435 1,733
Cu 330,739 154,915
Mo 6,435 1,733
Cu 262,310
Mo 10,890
13,111,528 16,693,910 16,691,531 7,019,676
215,917 278,044 277,658 99,479
32
Production
Concentrate Produced (t)
23
24
25
26
Period
27
28
29
30
31
Total Mo
39
40
41
42
43
Total Cu
33
34
35
36
37
38

281
The market prices for copper and molybdenum that have been selected are $2.75 / lb. for
Copper and $13.6 / lb. for Molybdenum.
Table 22-6 shows copper and molybdenum revenues by case.
Table 22-6: Revenue by Metal (Nominal values)

22.5 Residual Value In Situ
Residual values of minerals were considered in the cases when in situ copper remained after 40
years of plant operation. In situ copper was valued at 5 % of the copper price considered (13.75
cUS/lb. = 5%*275 cUS/lb.). Table 22-7 shows the copper residual value for each case.
Table 22-7: Copper Resource Residual Values

Copper 19,591,704 24,944,624 24,941,069 10,489,045
Molybdenum 2,794,709 3,598,848 3,593,860 1,287,605
Total 22,386,413 28,543,473 28,534,929 11,776,650
Description
kUSD
Cu In situ t 0 0 0 1,513,108
Cu In situ Mlb 0 0 0 3,329
Recoverable Cu Mlb 0 0 0 2,996
Residual Value kUSD 0 0 0 411,944
Description Unit

282
22.6 Economic Evaluation Results
At the metals prices used, the option which gives the best NPV and fastest payback period is
that of 176,000 tonnes per day. Based on the projections resulting from the financial model, the
pre-tax NPV, IRR and payback periods are shown in Table 22-8
Table 22-8: Summary of Pre-Tax Economic Results

22.7 Sensitivity Analysis
NPV sensitivity analysis has been performed for changes in market price for copper and
molybdenum; changes in capital costs and changes in operating costs, and changes on discount
rate. All sensitivity analysis has been carried out on a pre-tax basis and run as if the non-
consumptive water rights and the Hydro Electric Plant are included in the Project.
Changes for metal prices are expressed in increments of 25 cUS/ lb. for copper and at $25, $28,
$30 and $35 per kilogram converted into lbs. for molybdenum, while operating and capital costs
are expressed in 5 % increments of negative and positive deviation from the Base Case values.
For discount rate, sensitivity has been made by increments of 1 % between 5 % and 10 %.
Net Present Value - 8% kUSD 421,447 745,818 411,212 2,963
IRR % 10.67% 11.43% 10.04% 8.02%
(*) Referred to the first operation year
Description Unit

283
22.7.1 Copper Price Variation
Table 22-9, Table 22-10 and Figure 22-1 to Figure 22-4 show NPV and IRR sensitivity analyses
for copper price variation.
Table 22-9: NPV Sensitivity Analysis Cu Price Variation

Table 22-10: IRR Sensitivity Analysis Cu Price Variation

225 -605,159 -925,473 -1,079,955 -584,702
250 -91,856 -89,828 -334,371 -290,869
275 421,447 745,818 411,212 2,963
300 934,750 1,581,463 1,156,795 296,795
325 1,448,054 2,417,109 1,902,379 590,628
Cu Price
Variation
cUS$/lb
kUSD
225 3.02% 2.51% 1.13% 2.70%
250 7.36% 7.54% 6.16% 5.56%
275 10.67% 11.43% 10.04% 8.02%
300 13.52% 14.74% 13.33% 10.24%
325 16.08% 17.67% 16.23% 12.29%
Cu Price
Variation
cUS$/lb
IRR %

284

Figure 22-1: Long term Cu Price Variation Case 1.2

285


286
22.7.2 Molybdenum Price Variation
Table 22-11 and Figure 22-5 to Figure 22-8 show NPV sensitivity analyses for molybdenum
price variation.
Table 22-11: NPV Sensitivity Analysis Mo Price Variation

11.4 312,769 558,529 247,573 -52,122
12.7 377,976 670,902 345,756 -19,071
13.6 421,447 745,818 411,212 2,963
14.5 464,918 820,733 476,668 24,997
15.9 530,125 933,107 574,851 58,048
Mo Price
Variation
cUS$/lb
kUSD

287
Figure 22-5: Mo Price Variation Case 1.2


288

22.7.3 CAPEX and OPEX Variation
Table 22-12 presents NPV sensitivity analyses for Capex variation,
Table 22-13 presents NPV sensitivity analyses for Opex variation and Figure 22-9 to Figure
22-12 presents the data graphically.

289

Table 22-12: NPV Sensitivity Analysis Capex Variation

Table 22-13: NPV Sensitivity Analysis Opex Variation

-35% 1,044,075 1,675,124 1,271,570 455,018
-30% 955,128 1,542,366 1,148,661 390,439
-25% 866,181 1,409,608 1,025,753 325,859
-20% 777,235 1,276,850 902,845 261,280
-15% 688,288 1,144,092 779,937 196,701
-10% 599,341 1,011,334 657,028 132,122
-5% 510,394 878,576 534,120 67,542
0% 421,447 745,818 411,212 2,963
5% 332,500 613,060 288,304 -61,616
10% 243,553 480,302 165,396 -126,196
15% 154,606 347,543 42,487 -190,775
20% 65,660 214,785 -80,421 -255,354
25% -23,287 82,027 -203,329 -319,933
30% -112,234 -50,731 -326,237 -384,513
35% -201,181 -183,489 -449,146 -449,092
Capex
Variation
kUSD
-35% 1,565,867 2,688,693 2,201,351 639,150
-30% 1,402,378 2,411,140 1,945,617 548,266
-25% 1,238,890 2,133,586 1,689,883 457,382
-20% 1,075,401 1,856,032 1,434,149 366,498
-15% 911,913 1,578,479 1,178,414 275,615
-10% 748,424 1,300,925 922,680 184,731
-5% 584,936 1,023,371 666,946 93,847
0% 421,447 745,818 411,212 2,963
5% 257,959 468,264 155,478 -87,921
10% 94,470 190,710 -100,256 -178,805
15% -69,019 -86,843 -355,990 -269,688
20% -232,507 -364,397 -611,725 -360,572
25% -395,996 -641,951 -867,459 -451,456
30% -559,484 -919,504 -1,123,193 -542,340
35% -722,973 -1,197,058 -1,378,927 -633,224
Opex
Variation
kUSD

290

Figure 22-9: Capex and Opex Variation Case 1.2

291


292
22.7.4 Discount Rate Variation
Table 22-14 presents NPV sensitivity analyses for discount rate variation
Table 22-14: NPV Sensitivity Analysis Discount Rate Variation

22.8 After Income Tax Analysis
Coffey is not a financial adviser, and these models are indicative only. Coffey recommends that
the Company and other readers of this report seek their own financial and tax advice before
taking action in relation to the financial matters herein.
The financial model and results have been presented on a pre- income tax basis after deducting
the Mining Royalty Tax. After-tax sensitivities have been prepared to illustrate on a pro-forma
basis the potential impact of different taxation scenarios that may be applicable.
The preparation of a comprehensive after-tax model results from proper tax planning, modelled
with the advice of taxation specialists, which rely on a number of material assumptions that
cannot be defined at this point, but can be generally grouped into:
The optimal capital structure (leverage)
The financial and commercial terms and conditions available in the markets at the time of
preparing the actual comprehensive funding package for the Project
The availability and principal characteristics of multi-jurisdictional tax planning alternatives.
These assumptions depend on multiple material variables including, but not limited to:
5% 1,256,991 1,895,243 1,435,573 544,300
6% 915,642 1,436,948 1,018,225 321,006
7% 642,937 1,059,666 683,070 144,739
8% 421,447 745,818 411,212 2,963
9% 239,156 482,600 188,984 -112,736
10% 87,464 260,349 6,172 -208,269
Discount Rate
Variation
kUSD

293
The financial, operational and commercial strength and the country of origin of strategic
partners, joint venture partners, or other sponsors that would be involved in the
development and operation of the Project
The conditions prevailing in the multiple debt, equity and other financial markets relevant
to the Project
The country of origin of the Projects main equipment suppliers, and
The conditions prevailing in the main commercial markets relevant to the Project (off-take,
EPCM, power supply, etc.).
Two after income tax scenarios have been prepared:
Unlevered
Levered. The levered after income tax analysis has been prepared based on the following
main assumptions:
The Project can fund a portion of its capital investments with debt:
o Funding for 50 % of the initial capital expenditures and 50% of the expansion
capital expenditures
o Debt at an interest rate of 5 %
o Initial capital expenditures loans with a total tenor of 12 years, with equal
amortizations commencing once commercial operations begin
o Expansion capital expenditures loans are amortized over 8 years with equal
amortizations commencing upon completion of the expansion expenditures
o Up-front loan costs of 2 % of total loan amount
The Project elects to utilize accelerated depreciation
The Project does not utilize leasing or any other tax planning alternatives

294

Table 22-15: Summary of Post-Tax Economic Results

No Leverage
IRR % 8.84% 9.45% 8.36% 6.62%
Assumed Leverage
IRR % 10.60% 11.54% 9.93% 7.29%
Description Unit

295
23 ADJACENT PROPERTIES
West Wall
West Wall is a copper porphyry exploration project of similar size and development to the
Vizcachitas Project. It is approximately 20 km south-east from the Vizcachitas Property. West
Wall has published resources according to the 2004 Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (JORC Code) of:
Indicated resources of 495 Mt @ 0.55 % Cu, 0.047 g/t Au and 0.009 % Mo and
Inferred resources of 970 Mt @ 0.48 % Cu, 0.047 g/t Au and 0.0076 % Mo (Xstrata 2012).
GlencoreXstrata and Anglo American each have a 50 % interest in the mining company
West Wall SCM which holds the project.
The porphyry copper style hydrothermal alteration identified in the West Wall property covers a
large area of approximately 7 km by 3 km. The primary control is structural with primary NS
structures, secondary NNE structures and strong WWN shearing. The mineralization is
associated with quartz diorite porphyry intruding into an Oligocene volcanosedimentary
sequence. The mineralization is mainly chalcopyrite and bornite associate with potassic
alteration.
Exploration has focused in the south of the prospect at Lagunillas and West Wall North. During
the 201112 drilling programme a total of 24,000 m of infill were completed and incorporated
into the geological models and Mineral Resource estimate.

296
24 OTHER RELEVANT DATA
The Qualified Persons are unaware of any other data or information that would be relevant to
this Technical Report which is not already contained in one of the existing sections of this
Technical Report.

297
25 INTERPRETATION AND CONCLUSIONS
This section presents the conclusions and recommendations of the Qualified Persons for the
Project and this Technical Report.
25.1 Interpretations and Conclusions
Interpretations and conclusions of the Qualified Persons of the Vizcachitas PEA are listed below:
The results of the PEA indicate that the Vizcachitas Project is robust at this stage of
development demonstrating favourable economic potential that warrants further work
toward the development of pre-feasibility studies.
The exploration programme continues to demonstrate the potential for future growth of the
resource.
The sample preparation, security, and procedures followed by Los Andes Copper are
adequate to support a Mineral Resource estimate.
Assay data provided by Los Andes Copper was represented accurately and suitable for
use in resource estimation.
There are no known environmental issues existing or anticipated that could materially
impact the ability to develop the Vizcachitas Project.
There are no known factors related to metallurgical, environmental, permitting, legal, title,
taxation, socio-economic, marketing, or political issues which could materially impact the
ability to develop the Vizcachitas Project.
The recommended overall pit slope templates are more conservative by rock mass
strength because the designs are based on bench configurations controlled by structural
fabric. Consequently, there is a future opportunity to optimize overall slopes by
incorporating controlled blasting and/or single benching to steepen bench face angles as
well as an opportunity to lessen the degree of pit slope depressurization.
The metallurgical test work undertaken is reasonably extensive and suitable for this level
of study. The comminution data are considered adequate for a conceptual milling circuit
design. The design of the processing circuits is based on this test work data in conjunction
with assumptions based on typical industry values.
The Vizcachitas mineralized material is of moderate competency and hardness, and
amenable to grinding in a conventional SABC circuit. The mineralogy is fine grained and
test work indicates a requirement to re-grind to a fine particle size to achieve adequate
liberation for flotation as is common within the industry.

298
Overall recoveries are estimated as 90 % for copper and 75 % for molybdenum, which will
be contained in metals concentrates.
The Project has been designed to meet current social and environmental management
practices. Provisions have been made within the mine plan and operating costs to account for
the environmental protection and rehabilitation of the Project once mining has been completed.
25.2 Risks and Opportunities
The following risks and opportunities associated with development of the Project have been
identified by the Qualified Persons.
During the pre-feasibility study phase, a number of risks will be investigated further and possibly
reduced or eliminated. Similarly, further investigation and evaluation of some opportunities may
allow them to be incorporated in the Project.
25.2.1 Risks
Long term depressed metals pricing, particularly for copper, together with the risks and
uncertainties associated with metal price fluctuations
Political risks and uncertainties affecting legislation, regulatory requirements or general
business climate, including for example, (i) potential changes in existing laws and potential
imposition of more onerous laws in the future; or (ii) increased costs or difficulties
associated with financing the Project
Shortage of skilled labour due to competing demands from the mining industry in general,
and other mines in Chile in particular
Capital and operating cost escalations as project plans and parameters change or are
refined
Water supply cost; Los Andes Copper must secure consumptive rights to water closer to
the Project, the final cost to secure these rights has to be defined
Failure to obtain or maintain or a delay in obtaining necessary permits or approvals by
government authorities
A structural geological model has not been developed for the pit. There is risk that
unidentified structures exist which could negatively affect the pit slope stability presented
in this Technical Report

299
Diesel fuel is a significant component of the mine operating costs. Higher fuel prices could
impact project returns given the stripping ratio, pit depth, and corresponding long haulage
profiles
Electrical power is a significant component of the plant operating costs. Higher power
prices and overall power availability could impact project returns.
25.2.2 Opportunities
Substantial opportunities for improving the Projects potential viability exist. They include:
Higher metals pricing, particularly for copper, than those used as a long term forecast in
the financial model
Potential for expansion of mineral resources
Additional metallurgical optimization test work may result in higher metallurgical recoveries
and/or better concentrate grades
More cost effective development with more detailed information
Additional investigation of rail transport options and negotiation with interested service
providers (both rail and port) may lead to more cost effective transport of concentrates and
consumables

300
26 RECOMMENDATIONS
Based on the results of the PEA, the Qualified Persons recommend that Los Andes Copper
complete a PFS to further define the Project in order to more accurately assess its technical and
economic viability and to support permitting activities.
The tasks and estimate of the costs to complete the PFS are summarized below in Table 26-1.
Table 26-1: Tasks and Budget Estimate of the Costs to Pre-feasibility Study

Estimated cost
kUS$
1.
Explore potential extensions of pit mineralization, including 5,000 m of
DD drilling at approximately 10 locations, and necessary geologic, logistical, assaying,
and administrative support ($400/m allowance; 19% IVA included).
$ 2,000,000
2.
Update resource model/estimate with additional exploration drilling results, including
QA/QC.
$ 200,000
3.
Conduct additional conminution and flotation laboratory testwork of the new drilling
campaign is recommended.
$ 200,000
$ 2,400,000
3. Complete Prefeasibility Study
a)
Infill drilling to convert a percentage of the Inferred and Indicated resouce to measured
resouces. 5,000 meters of drilling. ($400/m allowance; 19% IVA included).
$ 2,000,000
b) Complete condemnation drilling for facility siting, including 5,000 m of drilling. $ 1,000,000
c)
Additional mine geotechnical data collection and engineering analysis, including 4,200
m of DD drilling at 5-7 locations.
$ 2,000,000
d)
Revise mine design and production schedule based on updated resource model;
upgrade accuracy of mining capital, operating, and sustaining capital cost estimates to
PFS level.
$ 500,000
e)
Complete additional hydrogeological field investigations, engineering analysis, and
computer modeling in support of mine dewatering and project water supply.
$ 1,000,000
f)
Complete further evaluation of new water feed to the water treatment plant and upgrade
capital and operating costs to PFS level.
$ 20,000
g)
With the new drilling campaign, complete mineral characterization consisting of spatial,
grade, and mineralogic variability testing of representative samples from across the
deposit, in numbers accepted by the industry as being statistically representative.
$ 300,000
h)
Conduct additional conminution and flotation laboratory testwork of the new drilling
campaign is recommended.
$ 100,000
i) Complete process and infrastructure design and associated costs to a PFS level. $ 1,000,000
j)
Complete field geotechnical and laboratory investigations; complete PFS level design
and associated costs for geotechnical infrastructure (TSF, WRSF, and roads).
$ 600,000
k) Perform environmental baseline studies and permitting activities. $ 350,000
l) Complete an updated marketing study. $ 50,000
m) Complete an updated power supply study. $ 50,000
n) Update and upgrade logistics and transportation study to PFS level. $ 75,000
o) Future studies management and coordination, execution planning and scheduling. $ 500,000
$ 9,545,000
$ 11,945,000
Task
Subtotal Exploration and Resource Estimate
Subtotal PFS Estimate
Total Estimated Cost for Recommended Future Work

301
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305
28 CERTIFICATES AND SIGNATURES
The undersigned prepared this technical report titled Preliminary Economic Assessment for
Vizcachitas Copper/Molybdenum Project, Region V, Chile, National Instrument 43-101,
Technical Report, Effective date January 23, 2014.

306
CERTIFICATE OF QUALIFIED PERSON

7445 Fleming Road, Vermon, Canada, V1H1C1
Telephone: +1 (416) 307-7367
Fax: +1 (416) 307-7483 fax
jawells@telus.net

I, John Wells do hereby certify that:
1. I am Principal of the firm John Wells, Minerals Processing Consultant, of Vermon, Canada.
My address is 7445 Fleming Road, Vermon, Canada, V1H1C1.
2. This certificate applies to the Technical Report titled "Preliminary Economic Assessment for
Vizcachitas Copper/Molybdenum Project, Region V, Chile, Effective Date: January 23,
2014", prepared for Los Andes Copper Ltd. (the "Technical Report").
3. I am a graduate of the University of London (Royal School of Mines) and hold a Minerals
Engineer title (1967).
4. I am a practicing metallurgical engineer and a Fellow of the Southern African Institute of
Mining and Metallurgy (FSAIMM); and a member of the Canadian Institute of Mining,
Metallurgy and Petroleum.
5. My relevant experience for the purposes of the Technical Report is:
Review and report as a consultant on numerous mining operation and projects around
the world for due diligence and regulatory requirements.
Pre-feasibility and Feasibility Study work on several copper porphyry projects.
Worked as a metallurgical engineer at several mines.
6. I have read the definition of qualified person set out in National Instrument 43-101
Standards of Disclosure for Mineral Projects (NI 43-101) and confirm that by reason of my
education, affiliation with a professional association (as defined in NI 43-101) and past
relevant work experience, I fulfill the requirements to be a qualified person for the purposes
of NI 43-101.
7. I most recently personally inspected the Vizcachitas Property on June 4th, 2013.

307
8. I am responsible for the preparation of Items: 1.7, 1.11, 13 and 17, and I am jointly
responsible for Item 25 of the Technical Report (NI 43-101) of the Preliminary Economic
Assessment for Vizcachitas Copper/Molybdenum Project, Region V, Chile, for Los Andes
Copper Ltd., effective date January 23, 2014.
9. I am independent of Los Andes Copper Ltd.
10. I have had no prior involvement with the Vizcachitas Project.
11. I have read NI 43-101 and the Technical Report has been prepared in compliance with
NI 43-101.
12. As of the effective date of the Technical Report, to the best of my knowledge, information
and belief, the Technical Report contains all scientific and technical information that is
required to be disclosed to make the Technical Report not misleading.

Dated this February 18, 2014.

signed and sealed
____________________________________
John Wells
Minerals Engineering - Business Administration
Independent Minerals Processing Consultant
Fellow Member of the Southern African Institute of Mining and Metallurgy

308
Alonso de Crdova 5710, Office 307, Las Condes,
Santiago, Chile
Telephone: +56 (2) 2952 3977
Fax: +56 (2) 2952 3977
Manuel.Hernandez@coffey.com

I, Manuel Hernndez do hereby certify that:
1. I have been retained by Coffey Consultora y Servicios SpA, as a Civil Mining Engineer. My
address is Alonso de Crdova 5710, Office 307, Las Condes, Santiago, Chile.
2014.", prepared for Los Andes Copper Ltd. (the "Technical Report").
3. I graduated with a Bachelor of Science degree in Civil Mining Engineering from the
Universidad de Chile, Santiago, Chile, in 1986 and a Civil Mining Engineer degree in 1987.
4. I am a fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM) and hold a
South African Mine Manager Certificate of Competency.
5. I have worked as a mining engineer for a total of 34 years. My relevant experience for the
purpose of the Technical Report is:
Review and report as a consultant on numerous exploration, mining projects and
operations in Latin America.
I have extensive experience in mining engineering and geology. I have worked on
mining engineering and geological assignments at the following copper porphyry
mines in Chile: Chuquicamata, El Teniente and Radomiro Tomic (Codelco), Mantos
Blancos (Anglo American) and Esperanza (Antofagasta Minerals).
I have been involved in: business improvement from diagnostic to implementation,
scenario planning, risk analysis and risk management, business modelling, value at
risk, production at risk, capital productivity (open pit, UG and process plants),
independent peer reviews, high level due diligence, scoping, PFS and FS.

309
of NI 43-101.
7. I personally visited and inspected the Vizcachitas Property on June 4th, 2013.
8. I am responsible for the preparation of Items: 1.1 to 1.4, 1.9, 1.10 1.12 to 1.17, 2 to 6, 15, 16,
18 to 24, 26 and 27, and I am jointly responsible for Items 1.5 1.6, 7, 8, 9, 10 and 25 of the
Technical Report (NI 43-101) of the Preliminary Economic Assessment for Vizcachitas
Copper/Molybdenum Project, Region V, Chile, for Los Andes Copper Ltd., effective date
January 23, 2014.
NI 43-101.
As of the effective date of the Technical Report, to the best of my knowledge, information and
belief, the Technical Report contains all scientific and technical information that is required to be
disclosed to make the Technical Report not misleading.


signed and sealed
___________________________
Manuel Hernndez
Civil Mining Engineer
Fellow Member of the Australasian Institute of Mining and Metallurgy

310
Santiago, Chile
Telephone: +56 (2) 2952 3977
Fax: +56 (2) 2952 3977
Porfirio.Cabaleiro@coffey.com
I, Porfirio Rodriguez do hereby certify that:
1. I have been retained by Coffey Consultora y Servicios SpA, as a Mining Engineer,
Geostatistics Specialist. My address is Alonso de Crdova 5710, Office 307, Las Condes,
Santiago, Chile.
3. I graduated with a Bachelor of Science Degree in Mining Engineering from the Universidade
Federal de Minas Gerais, Brazil, in 1978.
4. I am a member of the Australian Institute of Geoscientists (MAIG).
5. I have worked as a mining engineer for a total of 34 years. My relevant experience for the
purpose of the Technical Report is:
Review and report as a consultant on numerous exploration project in Latin America
and around the world for due diligence and regulatory requirements.
I have been involved in: Resource and Reserve Estimates, Geometallurgy,
Geostatistics, Mine Planning, Economic Evaluation of Mining Projects, Systems
Analysis, Operational Research and Project Management.
of NI 43-101.
7. I am responsible for the preparation of Items: 1.8 and 14, and I am jointly responsible for
Item 25 of the Technical Report (NI 43-101) of the Preliminary Economic Assessment for

311
Vizcachitas Copper/Molybdenum Project, Region V, Chile, for Los Andes Copper Ltd.,
effective date January 23, 2014.
NI 43-101.


signed and sealed
_____________________________
Porfirio Rodriguez
Mining Engineer.
Geostatistics Specialist
Member of the Australian Institute of Geoscientists

312

Santiago, Chile
Telephone: +56 (2) 2952 3977
Fax: +56 (2) 2952 3977
floresyflores@manquehue.net
I, Romn Flores do hereby certify that:
1. I am I have been retained by Coffey Consultora y Servicios SpA, as a Geologist. My
address is Alonso de Crdova 5710, Office 307, Las Condes, Santiago, Chile.
3. I graduated with as a Geologist from the Universidad Catlica del Norte, Antofagasta, Chile,
in 1976.
4. I am a Registered Member of the Chilean Mining Commission and hold a valid Certificate of
Qualified Competency from the Chilean Mining Commission.
5. I have worked as a geologist for a total of 37 years. My relevant experience for the purpose
of the Technical Report is:
Review and report as a consultant on numerous exploration project in Chile and
around the world for due diligence and regulatory requirements.
I have been involved in: mineral exploration, mine site geology and mineral resource
estimations on numerous open pit base metal and gold deposits in Chile, Columbia,
Peru, Brazil and Argentina.
of NI 43-101.
7. I most recently personally inspected the Vizcachitas Property on June 4th, 2013.

313
8. I am responsible for the preparation of Items 11, and 12, and I am jointly responsible for
Items 1.5, 1.6, 7, 8, 9, 10 and 25 of the Technical Report (NI 43-101) of the Preliminary
Economic Assessment for Vizcachitas Copper/Molybdenum Project, Region V, Chile, for Los
Andes Copper Ltd., effective date January 23, 2014.
NI 43-101.
Dated this February 18, 2014

signed and sealed
_______________________
Romn Flores
Geologist
Member of Chilean Mining Commission

314
APPENDICES

315
APPENDIX A: LEGAL OPINION

316

317

318

319

320
APPENDIX B: LOCATION, AZIMUTH AND DIP OF
ALL DRILL HOLE

321
Hole ID
East
WGS84
North
WGS84
Elevation
masl. (m)
Total Depth
(m)
Year
Drilled
Company
VP-1 365,859.65 6,414,169.67 2,032.91 300.25 1993 Placer Dome
VP-2 365,647.26 6,413,393.08 2,034.88 300.2 1993 Placer Dome
VP-3 365,847.07 6,413,575.27 1,998.58 303.85 1993 Placer Dome
VP-4 366,049.70 6,413,595.30 2,081.85 251.5 1993 Placer Dome
VP-5 366,189.74 6,413,270.68 2,040.49 300 1993 Placer Dome
VP-6 366,102.00 6,413,138.50 1,965.91 497.15 1993 Placer Dome
V-01 365,838.18 6,414,161.03 2,023.46 307.13 1995-98 General Minerals
V-14A 365,967.00 6,413,327.00 1,980.00 20.43 1995-98 General Minerals
V-22 366,367.00 6,413,147.00 2,095.00 253 1995-98 General Minerals

322
Hole ID
East
WGS84
North
WGS84
Elevation
masl. (m)
Total Depth
(m)
Year
Drilled
Company
V-48 365,897.00 6,413,094.00 2,020.00 190 1995-98 General Minerals
LAV-064 365,973.79 6,412,730.48 1,954.95 424 2007 Los Andes
LAV-065 365,972.80 6,412,728.20 1,955.20 280 2007 Los Andes
LAV-066 365,859.09 6,412,780.20 1,996.00 256 2007 Los Andes
LAV-067 365,704.94 6,413,027.80 2,049.36 240 2007 Los Andes
LAV-068 365,941.67 6,412,949.58 2,018.79 250 2007 Los Andes
LAV-069 366,012.22 6,413,135.27 1,971.44 200 2007 Los Andes
LAV-070 366,424.84 6,412,677.36 2,089.94 210 2007 Los Andes
LAV-071 365,931.55 6,412,639.29 1,955.20 250 2007 Los Andes
LAV-072 365,922.77 6,412,838.73 1,993.14 250 2007 Los Andes
LAV-073 366,473.65 6,412,753.77 2,077.66 250 2007 Los Andes
LAV-074 365,934.13 6,413,255.25 1,975.76 369.3 2007 Los Andes
LAV-075 365,679.67 6,413,257.66 2,018.80 358 2007 Los Andes
LAV-076B 365,847.89 6,412,458.90 1,943.26 250 2007 Los Andes
LAV-077 366,330.05 6,412,704.52 2,022.44 350 2007 Los Andes
LAV-078 366,405.66 6,412,897.15 2,066.85 300 2007 Los Andes
LAV-079 366,288.35 6,412,824.91 1,994.71 250 2007 Los Andes
LAV-080 366,136.86 6,412,555.14 1,981.87 250 2007 Los Andes
LAV-081 366,103.31 6,412,771.44 1,953.22 386 2007 Los Andes
LAV-082 365,768.76 6,412,708.90 1,992.64 250 2007 Los Andes
LAV-083 365,698.16 6,413,358.58 2,006.85 250 2007 Los Andes
LAV-084 365,585.39 6,412,982.96 2,096.85 250 2007 Los Andes
LAV-085 365,577.17 6,413,085.26 2,120.74 292 2007 Los Andes
LAV-086 366,005.21 6,412,817.47 1,958.25 280 2007 Los Andes
LAV-087 365,762.96 6,412,910.26 2,064.77 250 2007 Los Andes
LAV-088 366,005.08 6,412,821.10 1,962.73 250 2007 Los Andes
LAV-089 365,842.63 6,412,881.23 2,042.80 254.05 2007 Los Andes
LAV-090 365,676.87 6,412,946.31 2,068.88 412 2007 Los Andes
LAV-091 365,644.06 6,413,059.90 2,081.38 362 2007 Los Andes
LAV-092 365,932.34 6,412,641.03 1,956.25 250 2007 Los Andes
LAV-093 365,931.28 6,413,174.45 1,977.50 478 2007 Los Andes

323
Hole ID
East
WGS84
North
WGS84
Elevation
masl. (m)
Total Depth
(m)
Year
Drilled
Company
LAV-094 365,623.75 6,413,178.78 2,050.31 500 2007 Los Andes
LAV-095 365,507.19 6,413,013.09 2,141.47 250 2007 Los Andes
LAV-096 365,662.79 6,412,732.87 2,050.75 296 2007 Los Andes
LAV-097 365,764.94 6,412,810.12 2,040.20 270 2007 Los Andes
LAV-098 365,960.74 6,413,049.78 2,024.32 255 2007 Los Andes
LAV-099B 365,768.89 6,413,118.33 2,015.54 370 2007 Los Andes
LAV-100 365,465.08 6,413,436.99 2,142.51 220 2007 Los Andes
LAV-101 366,066.96 6,412,580.25 1,958.48 143.7 2007 Los Andes
LAV-102 366,406.39 6,412,464.64 2,049.53 250 2007 Los Andes
LAV-103 366,256.59 6,412,405.80 2,018.83 152.75 2008 Los Andes
LAV-104 365,487.50 6,412,799.23 2,162.02 250 2008 Los Andes
LAV-105 365,592.64 6,412,761.83 2,098.77 250 2008 Los Andes
LAV-106 365,466.22 6,412,598.94 2,111.21 250 2008 Los Andes
LAV-107A 365,839.55 6,412,679.47 1,962.34 330 2008 Los Andes
LAV-108 365,784.66 6,412,583.47 1,962.91 260 2008 Los Andes
LAV-109 366,330.11 6,412,700.42 2,026.68 256 2008 Los Andes
LAV-110 365,468.76 6,413,118.09 2,124.80 156 2008 Los Andes
LAV-111 365,401.13 6,413,151.81 2,144.43 250 2008 Los Andes
LAV-112 366,402.14 6,412,789.33 2,039.78 350 2008 Los Andes
LAV-113 365,747.62 6,412,481.68 1,958.61 200 2008 Los Andes
LAV-114 365,531.88 6,413,201.26 2,087.36 250 2008 Los Andes
LAV-115 365,665.67 6,414,139.24 1,988.34 250 2008 Los Andes
LAV-116 365,509.53 6,414,389.63 2,027.83 250 2008 Los Andes
LAV-117 366,474.91 6,412,751.18 2,082.21 270 2008 Los Andes
LAV-118 366,555.73 6,412,860.65 2,162.33 350 2008 Los Andes
LAV-119 365,587.69 6,414,256.81 2,026.38 198 2008 Los Andes
LAV-120 366,165.73 6,412,655.05 1,965.67 450 2008 Los Andes
LAV-121A 366,294.83 6,413,025.83 2,030.11 250 2008 Los Andes
LAV-122 365,683.72 6,412,609.12 2,027.00 250 2008 Los Andes
LAV-123 366,228.74 6,412,740.96 1,975.57 270 2008 Los Andes
LAV-124 366,055.43 6,412,697.70 1,951.66 717.2 2008 Los Andes
LAV-125 365,869.76 6,412,552.20 1,947.29 300 2008 Los Andes
LAV-126 365,874.73 6,412,554.81 1,947.17 258 2008 Los Andes
LAV-127 366,555.68 6,412,864.27 2,161.89 350 2008 Los Andes
LAV-128 366,278.89 6,412,609.91 2,018.80 280 2008 Los Andes
LAV-129 365,841.04 6,413,080.07 2,035.40 340 2008 Los Andes
LAV-130 365,665.38 6,412,838.56 2,087.63 250 2008 Los Andes
LAV-131 366,074.00 6,412,474.30 1,973.37 266 2008 Los Andes
LAV-132A 366,191.09 6,412,962.03 1,970.89 150 2008 Los Andes
LAV-133 365,848.27 6,412,463.08 1,941.24 250 2008 Los Andes
LAV-134A 365,623.26 6,412,518.81 2,029.02 250 2008 Los Andes
LAV-135A 366,060.33 6,412,917.76 1,983.80 249 2008 Los Andes
LAV-136 366,136.35 6,412,341.58 2,026.57 200 2008 Los Andes
LAV-137 366,036.27 6,412,387.40 1,965.43 250 2008 Los Andes
LAV-138 366,046.49 6,413,017.59 2,000.32 352 2008 Los Andes
LAV-139 366,001.41 6,412,611.71 1,941.22 351 2008 Los Andes
LAV-140 366,160.44 6,412,446.80 1,997.45 401.6 2008 Los Andes
LAV-141 365,766.95 6,412,817.83 2,039.42 435 2008 Los Andes
LAV-142 365,988.37 6,412,277.98 1,953.21 217 2008 Los Andes

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Preliminary Economic Assessment for

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