MARIA JOSE - GOLD PROJECT 1. GENERAL Maria Jose project is

Inversiones Estudios y Desarrollo S.A.C. - Explorations 2014
REPORT EOC-02-2014
MARIA JOSE - GOLD PROJECT
1. GENERAL
Maria Jose project is located in the district of San Pedro de Copa, province of Ocros, Ancash Region, at a
variable elevation from 1750 to 2400 m.a.s.l.; it consists of 10 mining concessions covering a 7600 hectares
area.
Access from Lima is through the Pan-american highway to Pativilca (188 km); from that point it goes East
through the marginal road to Cajatambo up to Huayto village and continues through a vehicle narrow path
to the project (50 km), passing Churlin village.
2. GEOLOGY
In the area, intrusive rocks from the Coastal Batholith appear and at least two intrusive events can be
differentiated: the first from dioritic to meladioritic medium-grained composition; the second is mediumgrained to open grained granodioritic; both in turn are cut by andesitic to dacitic dikes. To the West of the
area, in the top of Cerro Callao Grande, volcanic andesitic rocks from Calipuy volcanic appear.
The area is controlled by NW-SE, NE-SW and EW strike faults that control the veins site.
1.1. Type of Ore Body and Mineralization
Mineralization at Maria Jose project is mesothermal; in the area, 2 auriferous veins systems heading from
EW and NE -SW with dips at N and NW have been recognized with variable thickness between 0.25 m and
2.50 m; rockfill in veins is massive and porous white quartz with pyrite disseminated and in patches and
occasional disseminated chalcopyrite. Specifically, traces of galena and sphalerite have been found, which
have been confirmed by geochemical results and microscopy study. In the surface, iron oxides (goethite,
haematite and jarosite) are plentiful; they stain quartz and fill pores and fractures. Gold is associated with
sulphides and with oxides mainly in the surface. Free gold is frequently seen with the naked eye.
To date, 237 samples have been collected, corresponding to systematic sampling taken from channels and
trenches. From these samples, the maximum value obtained is 233.0 g/t Au and 8.9 oz Ag with thickness
ranging from 0.25 m to 2.50 m.
1.2. Veins
Thirteen veins have been recognized which outcrop make 3 km (see geochemical map - 03) with an average
width of 0.70m, and an average grade of 10 g/TM Au; continuity of veins both to NE and SW are still to be
surveyed and are covered by quaternary.
The main veins in which detail works have been made are described below.

Mari Vein
It can be seen for 420m length on Lomada Callao North flank with 300 m of vertical, showing N80º E strike
and 60º N dip, having widths that reach 1.7m, and 0.8m average thickness (see fig. 2). In this vein, visible
gold has been seen in both quartz and oxides.
In systematic sampling, 48 canal samples from outcrops and trenches were collected; geochemistry
reported up to 67.8 g/t Au and 5.24 Oz/t Ag.
The following chart shows the results of Mari Vein systematic sampling.
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REPORT EOC-02-2014
Canal
Sample
Width (m)
Au ppb
1
18700
0.7
20800
2
18701
0.6
1025
18703
0.6
16300
18704
0.5
3920
18705
0.45
4200
18708
0.25
9590
18709
0.35
28500
18711
0.4
23600
18712
0.5
18713
0.5
18714
0.5
3560
18715
0.7
5400
18716
0.3
3720
18717
0.7
48600
18719
0.7
26900
18720
0.6
27700
18721
0.4
1660
11
18722
0.6
2770
12
18723
0.7
1280
25
13
18724
0.6
9050
26
14
18725
0.4
527
18726
0.3
5480
3
4
5
6
7
8
9
10
15
Canal
Sample
Width (m)
Au ppb
18728
0.5
16500
18729
0.5
13250
18730
0.7
1215
18731
0.7
2140
18732
0.8
849
18733
0.7
10200
18734
0.6
8020
18735
0.6
67800
43200
18736
0.5
4800
20400
18737
0.5
2480
18738
0.5
3360
18739
0.5
11250
18740
0.5
1625
18741
0.45
321
18742
0.45
62
18743
0.45
281
18744
0.5
1415
18745
0.4
1160
18746
0.4
1260
18748
0.7
5090
16
17
18
19
20
21
22
23
24
18727
0.7
334
(*) Colors blue and sky blue are complementary samples in a subdivided canal.
In this vein’s outcrop, 2 economic ore shoots have been defined: the first interval having [email protected] g/t
Au with 0.84m thickness (see table below) and the second interval having [email protected] g/t Au and 0.80m
thickness, representing mineralization persistence both horizontally and vertically (see Mari Vein
longitudinal section - 04A).
MARI Vein Ore Shoot Samples
Sample
18700
18701
18702-03-04
18705-06-07
18708-09-10
18711-12-13
18714-15
18716-17-18
18719
18720-21
Average
width (m)
0.7
0.6
1.1
0.5
0.6
1.4
1.2
1.0
0.7
0.6
0.84
Au ppb
Grade
20800.0
1025.0
10672.7
4200.0
20620.8
29457.1
4633.3
35136.0
26900.0
27700.0
18989.6
158m @ 18.99 gr/T Au w: 0.84m
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REPORT EOC-02-2014
Luz Vein
Located in the central part, it crosses Lomada Callao Grande being continuous for 500 m length, width
ranging from 0.3m to 2.3m, showing N80º E strike and 40º to 75º N dip. It shows a small split to the
footwall of the NE system. 39 samples have been collected both in channels and trenches of the vein
and altered rock, which report up to 40.4 g/t Au and 2 Oz/t Ag.
Sample
18753
18754
18755
18756
18757
18758
18759
18760
18763
18764

width (m)
1.2
1
0.6
0.4
0.8
0.3
0.8
0.5
0.5
0.45
Au ppb
2900
14200
9960
2600
10450
1020
9030
1615
40400
2750
Sample
18775
18776
18787-88
18790
18793
18794
18795
18783-84
18785
18786
width (m)
0.45
0.65
2.3
0.3
1.9
0.2
0.3
1.1
0.6
0.6
Au ppb
4130
30400
553
452
731
613
3110
13223
4930
6010
Juli Vein and splits
Juli Main Vein appears for about 750 m with 1.10m average width; it shows about 3 sigmoidal and tensional
split veins with 250m length, in average, to the main vein’s footwall. At intersections, openings are formed;
one of them reaches 4.5m width and 12 m length with an average grade of 27.2 g/t Au (ORE SHOOT). A
total of 74 samples were taken in Juli Main Vein and its splits. The best intervals of this vein reports grades
between 3.4 and 114.3 g/t Au.
Sample
18868-70-71
18854
18852-53
18832-33
18848-50-51
18834-35
18842
15998-99
18839-40
18836-37-38
width (m)
Au ppb
0.85
0.45
0.65
1.6
1.55
1.4
0.75
0.4
1.4
699
925
708
114305
11741
3745
3930
3456
7005
2.1
10727
One of the intersections of Juli Main Vein with its split footwall reports grades of 27.1 g/t Au in 4.5m width
in average.
Sample
18891
18892
18893
18894
18895

width (m)
Au ppb
1
1
1
1
0.5
24600
25000
23500
45800
6930
Lucumo Vein
It shows a 450m outcrop, showing variable widths that achieve up to 2.0m and grades up to 44.7 g/t
Au. Thirty-seven systematic samples have been taken.
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Sample
width (m)
Au ppb
Sample
width (m)
Au ppb
19101
19102-03
19104
19105
19106
19107
19108
19110
19111
19112-13
19116
19117
19118
19119-20
0.9
1.7
0.5
0.5
0.4
0.15
0.7
0.7
1
1.6
0.8
0.5
0.8
1.4
5600
1178.5
983
10750
3100
3970
3270
10950
9060
20175
4740
496
5470
9480
19121
19122-23
19124
19125
19126
19127
19128
19130
19131
19132
19133
19134-35
19136
19137-38
0.4
0.9
0.35
0.35
0.2
0.3
0.5
0.45
0.5
0.15
0.35
1.4
0.5
0.9
582
7850
405
5580
3760
3800
3710
44700
2680
6000
1190
4485
1595
6772
Rose Vein
ROSE vein seems to be a tensional structure between Luz and Fatima veins. It appears at about 100m with a
width between 0.2 and 0.70m and grades between 0.4 and 47.0 g/t Au.

Fatima Vein
It appears about 150m, 0.3m to 1.2m width; in this vein, a sample with native gold was obtained and
reported 233 g/TM Au (sample 16479). As it is one of the veins with the highest grade, it has been worked
by informal miners (5 meters length max.).

Other veins
There are a number of veins with small outcrops between 30m and 100m, which are currently in process of
recognition with trenches. Among these veins, there are: Tres Marias, Jessy, Rubi, Luciana, Mabel, showing
0.2m to 0.50m width.
1.3. Auriferous Potential.
Preliminarily, based on the 4 main veins surface sampling, a 428,000 TMS ore potential has been estimated,
containing about 168,000 oz Au. Undoubtedly, it is known that in this type of mesothermal deposits,
mineralization deepens several hundred of meters in the vertical; therefore, this estimate indicated above
represents a portion of the total potential this ore body may contain.
Width
(m)
Length
(m)
depth (m)
Weighted
grade Au ppm
TMS
Oz Au
Mari Vein
0.80
420
150
11.98
136080
52419
Luz Vein Stretch 1
0.64
270
150
11.04
69984
24843
Juli Main Vein
1.10
210
150
19.91
93555
59893
Juli Vein- Min. Ore
Shoot
4.50
12
10
27.19
1458
1275
Lucumo Vein
0.70
450
150
7.24
127575
29699
428,652
168,130
Vein
Total
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REPORT EOC-02-2014
3. DRILLING PROGRAM
Based on the work performed, deepening in the higher grade ore shoot of the 4 main veins has been
projected, which will be explored by implementing an initial program of 1500m diamond drilling, with the
possibility to be extended to 2500m. After the completion of this program, other drilling programs will be
defined and/or exploration with drifts on veins will be planned.
4. CONCLUSIONS

MARIA JOSE gold project represents one of the few vein ore bodies with a width greater than 1
meter within the Coastal Batholith.

Regionally, it is known that similar auriferous veins are thin at outcrop, but it has been
demonstrated with underground work that their thickness increase at depth, which is the case of
Mina VICUS (Minera Vicus) and Mina Caracolito located about 20 km south of Maria Jose project.
Locally, the situation is similar, Mari Vein (where the outcrop allows seeing its depth) at the highest
elevations (2070 m) has an average thickness of 0.20m with grades from 5.0 to 18.0 g/t Au and in
deeper elevations (1830 m) its thicknesses range from 0.5 to 1.50m with grades from 3.0 to more
than 35.0 g/t Au.

Mesothermal veins have continue gold grades that can reach hundreds of meters (at vertical), and
is demonstrated at the Maria Jose project where veins appeared at 2300 m.a.s.l. elevation and gold
mineralization continue at the lowest 1800 m.a.s.l. elevation. This characteristic of veins also occurs
in similar deposits like The San Juan de Chorunga mine in Arequipa which deepens > 1000m, the
Cerro Rico mine in Arequipa > 500m , the Gigante mine of MARSA in La Libertad which, to date,
have 1200m recognized in ore shoots deepening of Esperanza and Cabanas veins; the Retamas
Mine > 900m and the Poderosa mine > 800m.

The potential for Maria Jose is for a medium scale mining, comparable to mining operations in the
Pataz area, La Libertad.

A preliminary estimation of 168,000 oz Au has been made for the Maria Jose project, this is
calculated mainly from the 4 main veins ore shoots.
Inversiones Estudios y Desarrollo S.A.C. - Explorations 2014
REPORT EOC-02-2014
Inversiones Estudios y Desarrollo S.A.C. - Explorations 2014
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Inversiones Estudios y Desarrollo S.A.C. - Explorations 2014
REPORT EOC-02-2014