Technical report for the UTUPARA-CHAPI CHAPI PROJECT

Transcription

Technical report for the
UTUPARA-CHAPI CHAPI PROJECT
Apurimac Department
Southern Peru
Paul Pearson
Bsc (Hons.), PhD, FAusIMM
31st March 2013
Technical Report on the Utupara-Chapi Chapi Project
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www.alturasminerals.com
View looking westwards towards Cerro Utupara from within the highly altered, strong copper and
gold anomalous intrusive body of the Cachorro Zone in the Utupara sector. The mine workings,
indicated by the dumps on the left hand side of the photo, exploit high grade gold veins in the
adjacent quartzites, which form the sharper peaks such as Cerro Utupara.
Strong surficial copper oxide staining of fractured and gold-silver –mineralized siliciclastic rocks in
the Huarajo Target area of the Chapi Chapi sector.
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TABLE OF CONTENTS
0. SUMMARY................................................................................................................................................ 1 1. INTRODUCTION....................................................................................................................................... 5 1.1. General ................................................................................................................................................. 5 1.2. Scope and Conduct .............................................................................................................................. 5 1.3. Sources of Information ......................................................................................................................... 5 1.4. Units and Currency ............................................................................................................................... 5 1.5. Disclaimer ............................................................................................................................................. 5 2. PROPERTY LOCATION, ACCESS, DESCRIPTION, STATUS AND PHYSIOGRAPHY ....................... 6 2.1. Property Location.................................................................................................................................. 6 2.2. Access to the Property ......................................................................................................................... 7 2.3. Property Description ............................................................................................................................. 7 2.4. Property Status and Deal Structure .................................................................................................... 10 2.4.1. Standing ......................................................................................................................................... 10 2.4.2. Rentals ........................................................................................................................................... 10 2.4.3. Penalties ......................................................................................................................................... 10 2.4.4. Deals .............................................................................................................................................. 11 2.5. Physiography, Flora and Fauna ......................................................................................................... 12 2.6. Climate ................................................................................................................................................ 12 2.7. Local Resources and Infrastructure.................................................................................................... 12 2.8. Environmental and Socio-Economic Issues ....................................................................................... 12 2.9. Environmental Regulations in Peru .................................................................................................... 13 2.10. Taxation and Royalties in Peru........................................................................................................... 14 3. HISTORY ................................................................................................................................................ 15 3.1. Pre-2004 Exploration – Utupara Sector ............................................................................................. 15 3.1.1. Geographic/Grid Control – Utupara Sector .................................................................................... 15 3.1.2. Geological Mapping – Utupara Sector ........................................................................................... 16 3.1.3. Rock Chip Sampling – Utupara Sector .......................................................................................... 17 3.1.4. Soil sampling – Utupara Sector...................................................................................................... 20 3.1.5. Trenching and Channel Chip Sampling – Utupara Sector ............................................................. 23 3.1.6. Geophysics – Utupara Sector ........................................................................................................ 24 3.1.6.1. Jose Arce – Geofísicos de Exploration Work ................................................................................. 24 3.1.6.2. Val D’Or SAGAX Work ................................................................................................................... 26 3.1.6.3. Ground Magnetic Survey................................................................................................................ 26 3.1.6.4. Induced Polarization / Resistivity Survey ....................................................................................... 27 3.1.7. Drilling – Utupara Sector ................................................................................................................ 30 3.1.7.1. Milpo Work ..................................................................................................................................... 30 3.1.7.2. Drillhole Sampling and assaying .................................................................................................... 32 Technical Report on the Utupara-Chapi Chapi Project
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3.1.7.3. Recoveries ..................................................................................................................................... 32 3.1.7.4. Bulk Density Determinations .......................................................................................................... 32 3.1.8. Petrographic and Mineralogical Studies – Utupara Sector ............................................................ 33 3.1.9. Historic Exploration Expenditures – Utupara Sector ...................................................................... 33 3.1.10. Conclusions Concerning Previous Exploration Work by Milpo – Utupara Sector .......................... 33 3.2. Pre-2005 Exploration – Chapi Chapi Sector ...................................................................................... 34 3.2.1. Geographic/Grid Control – Chapi Chapi Sector ............................................................................. 34 3.2.2. Geological Mapping – Chapi Chapi Sector .................................................................................... 34 3.2.3. Stream Sediment Sampling – Chapi Chapi Sector ........................................................................ 35 3.2.4. Rock Chip Geochemical Sampling – Chapi Chapi Sector ............................................................. 36 3.2.5. Trench Geochemical Sampling – Chapi Chapi Sector ................................................................... 37 3.2.6. Ground Magnetics Survey – Chapi Chapi Sector .......................................................................... 38 3.2.7. Drilling – Chapi Chapi Sector ........................................................................................................ 39 3.2.8. Historic Exploration Expenditures – Chapi Chapi Sector .............................................................. 39 3.2.9. Conclusions Concerning Previous Exploration Work by MIRL – Chapi Chapi Sector .................. 40 4. GEOLOGICAL SETTING ....................................................................................................................... 41 4.1. Tectonic Setting of Southern Peru...................................................................................................... 41 4.2. Regional Geological Setting ............................................................................................................... 42 4.3. Property Geology ................................................................................................................................ 45 4.3.1. Lithologies and Stratigraphy ........................................................................................................... 45 4.3.1.1. Yura Group ..................................................................................................................................... 46 4.3.1.2. Murco Formation ............................................................................................................................ 46 4.3.1.3. Ferrobamba Formation................................................................................................................... 46 4.3.1.4. Yauli-Andahuaylas Batholith .......................................................................................................... 47 4.3.1.5. Puno Group .................................................................................................................................... 49 4.3.1.6. Tacaza Group................................................................................................................................. 50 4.3.2. Hydrothermal Alteration.................................................................................................................. 50 4.3.2.1. Porphyry-style Alteration ................................................................................................................ 50 4.3.2.2. Skarn-style Alteration ..................................................................................................................... 51 4.3.2.3. Epithermal-style Alteration ............................................................................................................. 53 4.3.3. Structure ......................................................................................................................................... 53 5. DEPOSIT TYPES ................................................................................................................................... 55 5.1. Porphyry Copper-Gold ........................................................................................................................ 55 5.2. Skarn Copper-Gold ............................................................................................................................. 57 5.3. Structurally-controlled Gold Hosted by Quartzite ............................................................................... 58 5.4. Carbonate-hosted low sulfidation epithermal gold ............................................................................. 59 5.5. Structurally-controlled Gold Hosted by Intrusive Rocks ..................................................................... 59 5.6. Volcanic-Hosted High Sulfidation Epithermal Gold ............................................................................ 59 Technical Report on the Utupara-Chapi Chapi Project
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6. MINERALIZATION ................................................................................................................................. 61 6.1. Introduction ......................................................................................................................................... 61 6.2. Porphyry Copper-Gold ........................................................................................................................ 62 6.2.1. 6.3. Hydrothermal breccias ................................................................................................................... 65 Skarn Copper-Gold ............................................................................................................................. 68 6.3.1. Exoskarn ........................................................................................................................................ 68 6.3.1.1. Chapi Chapi Corridor...................................................................................................................... 68 6.3.1.1. Huaychullo ...................................................................................................................................... 70 6.3.2. Endoskarn ...................................................................................................................................... 71 6.3.2.1. Cerro Añasino Corridor .................................................................................................................. 71 6.3.2.2. Acco................................................................................................................................................ 73 6.3.2.3. Chapi Chapi Corridor...................................................................................................................... 73 6.4. Structurally-controlled Gold Hosted by Quartzite ............................................................................... 73 6.4.1. Cerro Utupara ................................................................................................................................. 73 6.4.2. Huarajo ........................................................................................................................................... 74 6.5. Carbonate-Hosted Low Sulphidation Epithermal Gold ....................................................................... 77 6.5.1. 6.6. Cerro Coronto ................................................................................................................................. 77 Structurally-controlled Gold Hosted by Intrusive Rocks ..................................................................... 78 6.6.1. Cerro Utupara, Chungo Pata and Chunta Cerca ........................................................................... 78 6.6.2. Titiminas ......................................................................................................................................... 79 6.7. Volcanic-Hosted High Sulphidation Epithermal Gold ......................................................................... 79 6.7.1. Cullimayoc and Chaica................................................................................................................... 79 6.7.2. Chama ............................................................................................................................................ 80 7. EXPLORATION ...................................................................................................................................... 81 7.1. Post-2005 Exploration – Utupara Sector ............................................................................................ 81 7.1.1. Introduction ..................................................................................................................................... 81 7.1.2. Surveying ....................................................................................................................................... 81 7.1.3. Geographic/Grid Control ................................................................................................................ 81 7.1.4. Geological Mapping – Utupara Sector ........................................................................................... 81 7.1.5. Soil geochemistry sampling – Utupara Sector ............................................................................... 83 7.1.6. Rock chip geochemical sampling – Utupara Sector ...................................................................... 84 7.1.7. Geophysics – Utupara Sector ........................................................................................................ 85 7.1.7.1. Ground magnetics survey .............................................................................................................. 85 7.1.7.2. Induced polarization / resistivity survey.......................................................................................... 85 7.2. Post-2005 Exploration – Chapi Chapi Sector ..................................................................................... 88 7.2.1. Introduction ..................................................................................................................................... 88 7.2.2. Surveying ....................................................................................................................................... 88 7.2.3. Geographic/Grid Control ................................................................................................................ 88 Technical Report on the Utupara-Chapi Chapi Project
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7.2.4. Geological Mapping – Chapi Chapi Sector .................................................................................... 88 7.2.5. Soil Geochemical Sampling – Chapi Chapi Sector ........................................................................ 89 7.2.6. Rock Chip Geochemical Sampling – Chapi Chapi Sector ............................................................. 91 7.2.7. Trench Geochemical Sampling – Chapi Chapi Sector ................................................................... 92 7.2.8. Petrographic and Mineralogical Studies – Chapi Chapi Sector .................................................... 93 7.2.9. Geophysics – Chapi Chapi Sector ................................................................................................. 94 7.2.9.1. Ground magnetics survey .............................................................................................................. 94 7.2.9.2. Induced polarization / resistivity survey.......................................................................................... 95 8. DRILLING ............................................................................................................................................... 97 8.1. Drilling – Utupara Sector .................................................................................................................... 97 8.2. Drilling – Chapi Chapi Sector ........................................................................................................... 101 9. SAMPLING METHOD AND APPROACH ............................................................................................ 118 9.1. Soil sampling procedure ................................................................................................................... 118 9.2. Rock chip (outcrop and grid) sampling procedure............................................................................ 118 9.3. Trench sampling procedure .............................................................................................................. 118 9.4. Core Sampling Procedures .............................................................................................................. 118 10. SAMPLE PREPARATION, ANALYSIS AND SECURITY ............................................................... 119 11. DATA VERIFICATION ..................................................................................................................... 120 12. ADJACENT PROPERTIES OF INTEREST ..................................................................................... 121 12.1. Regional Scale.................................................................................................................................. 121 12.2. District scale ..................................................................................................................................... 122 13. MINERAL PROCESSING AND METALLURGICAL TESTING ...................................................... 124 14. MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ................................................. 125 15. OTHER RELEVANT DATA AND INFORMATION .......................................................................... 126 16. INTERPRETATION AND CONCLUSIONS ..................................................................................... 127 16.1. Utupara Sector.................................................................................................................................. 127 16.1.1. Porphyry copper-gold ................................................................................................................... 127 16.1.2. Skarn copper-gold ........................................................................................................................ 129 16.1.3. Structurally-controlled gold hosted by quartzite ........................................................................... 129 16.1.4. Structurally-controlled gold hosted by intrusive rocks .................................................................. 130 16.2. Chapi Chapi Sector .......................................................................................................................... 130 16.2.1. Porphyry copper-gold ................................................................................................................... 130 16.2.2. Skarn copper-gold ........................................................................................................................ 132 16.2.3. Structurally-controlled gold hosted by quartzite ........................................................................... 132 16.2.4. Volcanic-hosted high sulfidation epithermal gold ......................................................................... 134 17. RECOMMENDATIONS .................................................................................................................... 135 17.1. Utupara Sector.................................................................................................................................. 135 17.1.1. Proposed work program ............................................................................................................... 135 Technical Report on the Utupara-Chapi Chapi Project
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17.1.2. 17.2. Proposed exploration budget ....................................................................................................... 135 Chapi Chapi Sector .......................................................................................................................... 135 17.2.1. Proposed work program ............................................................................................................... 135 17.2.2. Proposed exploration budget ....................................................................................................... 135 18. SOURCES OF INFORMATION ....................................................................................................... 136 Technical Report on the Utupara-Chapi Chapi Project
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LIST OF APPENDICES
Appendix 1: Milpo Drilling Results – Utupara Sector
Appendix 2: Estudio al microscopio de 38 muestras del Proyecto Chapi
Chapi (Report by Jorge Saez, August 2011)
Appendix 3: Geophysical Surveys-Ground Magnetometry, Chapi Chapi
Project (Report by Jose Arce, July 2011)
Appendix 4: Geophysical Surveys-Induced Polarization, Chapi Chapi Project
(Report by Jose Arce, July 2011)
Appendix 5: Alturas Minerals Drilling Results – Utupara Sector
Appendix 6: Alturas Minerals Drilling Results – Chapi Chapi Sector
Appendix 7: Alturas Minerals Composite Drilling/Geophysics Sections
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0. SUMMARY
The Utupara-Chapi Chapi Property in southern Peru lies approximately 510 kilometers southeast of the
country’s capital, Lima. The average altitude of the Property is 4,000 meters. Utupara-Chapi Chapi lies within
the Andahuaylas-Yauri Belt of southern Peru, an emerging and increasingly important porphyry-skarn belt.
This belt strikes NW-SE, can be traced for more than 300 kilometres, and hosts important copper-goldmolybdenum camps / deposits at Las Bambas, Los Chancas, Cotambambas and Tintaya.
In February 2008, Alturas Minerals Corp. entered into a letter agreement with Minera IRL Limited, regarding
its Chapi-Chapi copper-gold Property.
The Chapi-Chapi property is adjacent to Alturas’ 100% Utupara
copper-gold Project. Under the terms of the original letter agreement the two parties entered into a joint
venture with IRL at 20% and Alturas at 80%. In order to maintain its interest, Alturas was to complete drilling
of 20,000 meters on the combined Chapi-Chapi and Utupara properties (“Huaquirca Joint Venture”),
and conduct a scoping study, all at its expense, such that Minera IRL would be carried through this phase.
Once Alturas had completed its obligations, pro-rata contributions would then have been required by both
parties in accordance with their percentage interests.
Due to financial constraints Alturas had been unable to meet the terms of the original arrangement. A new
agreement was entered into in 2010 and amended in January of 2011 and December of 2012 which requires
Alturas to commence drilling by June 30, 2013 and complete 9,502 metres of drilling and a scoping study by
December 31, 2013 (in addition to the 5,500 m drilled in 2011 and 2012) to earn an 80% interest in the entire
joint venture property. IRL will hold the residual 20% interest and will be subject to dilution provisions, with
the right to convert to a 2% NSR if their interest falls below 20% or a 3% NSR if their interest falls below
10%. Alturas would have the right to buy back the NSR for $5,000,000.
At Utupara, previous work by Milpo and more recently by Alturas has established the presence of a large
disseminated copper-gold porphyry / breccia system, with sulfide mineralization hosted by intrusive breccias
and associated with the potassic, phyllic and transitional propyllitic phases of the alteration system.
Alturas´s completed 4.933 meters of diamond drilling, totalling 21 drillholes, between July 2007 and February
2008. Of this, a total of 10 holes for 2,999 meters were completed within the Cachorro Corridor over some
1.0 kilometers of strike length. All ten drillholes intersected disseminated, low grade, copper-gold
mineralization over wide intervals extending up to 410 meters, with many reporting tens of meter intervals of
higher copper and gold grades (greater than 0.25 % copper and 0.10 grams/tonne gold) within the intrusive
breccias.
In the author´s opinion, significant parts of the Utupara copper-gold system remain to be tested and further
drilling is required. Targets are likely to be complex pipe-like zones of higher copper-gold grade within the
broad sulfidic envelope and further exploration will represent a significant increase in risk. The main objective
of further exploration at Utupara should be around the Cachorro Corridor copper-gold target. The proposed
program consists of two or three diamond drillholes directed into untested combined high chargeability / high
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resistivity targets around the Cachorro Corridor. In addition, a further two or three diamond drillholes should
be directed at the other large untested induced polarization targets that lie nearby under thin cover. Total
proposed meterage is approximately 1,000 to 1,500 meters in four to six drillholes. The proposed program
would require a budget of between US$ 200,000 and US$ 300,000.
At Chapi Chapi, Alturas´s work between 2008 and 2012 has included the following:

Geological mapping at the 1:5,000 scale over an area of 8.3 x 7.6 kilometers;

Soil geochemical sampling on lines 100 meters apart with individual samples spaced 50 meters
apart (total 1,339 samples)

Referential rock geochemical sampling collected on grids and as grab samples (total 122 samples)

Trench geochemical sampling of 7 separate trenches, consisting of continuous samples 3 meters in
length (total 269 samples).

Ground magnetics along lines 200 meters apart for a total of 104.73 line kilometers (total area 7.0 x
3.5 kilometers)

Induced polarization / resistivity surveying, pole-dipole 2D arrays along lines 200 meters apart for a
total of 65 line kilometers (total area 6.5 x 3.5 kilometers);

Diamond drilling (17 drillholes, including 2 redills, for 5,578.65 meters).
Alturas’s 2011-2012 drilling program in the Chapi Chapi sector has uncovered evidence for extensive
intrusion-hosted copper-gold-molybdenum porphyry mineralization, manifest as a number of
chalcopyrite-, molybdenite and pyrite-bearing monzonite dykes cutting the dioritic rocks. A number of
drillholes completed in the Saullo, Mirador and Jacuire Target areas intersected moderate potassic alteration
with disseminations and discontinuous veinlets of chalcopyrite and molybdenite, plus superimposed phyllic
and propylitic alteration containing chalcopyrite, molybdenite, pyrite and pyrrhotite. Low-grade, copper-goldmolybdenum mineralization has been reported over broad intervals from several of these drillholes.
Potentially economic copper-gold mineralization resulting from this very large mineral system also occurs in
the surrounding country rocks and includes the following styles:
Skarn copper-gold: Around the contact of a large diorite to monzonite intrusive stock, exoskarn lenses are
controlled by steep NE-SW and WNW-ESE striking structures cutting the gently dipping limestones of the
Ferrobamba Formation. Surface high grade copper workings are hosted in layered karstic deposits
developed on and around the limestone-hosted skarns reflect supergene enrichment of sulfidic exoskarns.
The hypogene exoskarn rock intersected in drilling at the Chapi Chapi Target area is a magnetite-rich
garnet-pyroxene-wollastonite skarn affected by retrograde hydrothermal alteration including magnetite,
actinolite, calcite, scapolite, albite and sulphides (pyrite, chalcopyrite, pyrrhotite, gold and molybdenite).
The table below lists the significant mineralized exoskarn intervals from the drillholes at the Chapi Chapi
Target.
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Target
Drill Hole From (m)
Chapi Chapi CHA‐11‐03
35.50
"
80.60
80.60
" i ncl udi ng
CHA‐12‐10
74.00
86.00
" i ncl udi ng
90.00
" i ncl udi ng
To (m) Length (m)
58.10
22.60
95.30
14.70
85.40
4.80
114.50
40.50
114.50
28.50
109.10
19.10
Cu (%)
0.35
0.52
0.93
0.30
0.39
0.53
Au (g/t)
0.25
0.27
0.44
0.30
0.39
0.53
Ag (g/t)
1.30
1.81
3.00
1.63
2.08
2.08
Mo (%)
0.01
0.01
0.02
0.03
0.04
0.05
Quartzite-hosted gold-silver: The Huarajo Target is a +1.1 x 1.1 kilometer gold-in-soils geochemical
anomaly that lies entirely over fractured and limonitized sandstones which are cut by monzonite dykes and
breccia zones. It corresponds with a kilometric-scale highly chargeable zone defined in the induced
polarization survey. Gold-silver mineralization is associated with shallow-dipping hydrothermal breccias
with silica, sericite and pyrite in the matrix (plus sphalerite and tetrahedrite), replacing selected sandstone
units that can be correlated for the 200 meters between drillholes. As shown in the table below, significantly
elevated gold and silver characterize the hydrothermal breccia zones and strongly suggest that the Huarajo
Target potentially represents a large, quartzite-hosted disseminated gold-silver target in its own right..
Target
Huarajo
Drill Hole From (m)
CHA‐11‐02
14.50
"
45.30
45.30
" i ncl udi ng
"
151.50
"
181.00
"
269.30
"
311.40
"
325.40
CHA‐11‐02A 13.20
13.20
" i ncl udi ng
"
121.20
" i ncl udi ng 137.60
"
182.80
"
275.15
"
285.40
"
291.40
"
317.50
To (m) Lenght (m)
17.50
3.00
70.20
24.90
47.00
1.70
157.00
5.50
209.00
28.00
285.80
11.30
313.40
2.00
334.30
8.90
43.20
30.00
28.00
14.80
147.90
26.70
147.90
10.30
193.60
10.80
276.40
1.25
287.60
2.20
292.90
1.50
318.10
0.60
Cu (%)
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Au (g/t)
0.16
0.12
0.40
0.14
0.27
0.23
0.22
0.22
0.37
0.67
0.39
0.66
0.17
0.16
0.25
0.20
0.35
Ag (g/t)
‐
0.57
2.10
3.50
0.35
1.18
3.30
1.06
0.67
1.30
1.45
2.75
1.10
0.95
0.62
0.90
7.90
Mo (%)
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Although potential still exists to locate sizable porphyry, skarn and quartzite-hosted target/s in the Chapi
Chapi sector, they are most likely to be concealed hypogene sulfide targets. For this reason, further careful
3D integration of the geophysics datasets with the geology and existing drillhole data will be key to
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identifying hidden, but potentially important targets within economic range of the surface. These targets
should be followed up with a number of exploratory scout drillholes.
In addition, it is of utmost priority that further infill drilling needs to be focussed in the areas where potentially
economic mineralization has already been discovered, namely at the Chapi Chapi and Huarajo Targets, with
the aim of defining an inferred resource/s. This recommended drilling program would require a minium of
9,500 meters of drilling, estimated to cost US$ 3.8 million. Completion of a drilling program of this magnitude
would be critical in both meeting the requirements of the option agreement with IRL and also in defining a
broad resource envelope upon which to base the required economic scoping study.
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1. INTRODUCTION
1.1. General
The author has prepared a technical report specific to the standards dictated by National Instrument 43-101
(Standards of Disclosure for Minerals Projects) with respect to the Utupara-Chapi Chapi Property located in
southern Peru (“the Property”).
1.2. Scope and Conduct
This technical report was prepared by Dr. Paul Pearson, BSc (hons.), PhD. F. AUSIMM, an exploration
geologist who has over 25 years experience in the mining industry including a background in international
mineral exploration, project management and evaluation experience.
As required by the National Instrument 43-101, Dr. Pearson is Alturas Mineral's designated Qualified Person
for the supervision of exploration of its projects.
1.3. Sources of Information
In preparing this report, the author has reviewed geological reports, maps and cross-sections, miscellaneous
technical papers, company memoranda, and other public and private information listed in Section 18 of this
report.
This technical report describes some of thel rationale behind Alturas’s acquisition of the Utupara-Chapi
Chapi project, outlining previous exploration work completed by other parties and by Alturas, and also
presents a plan for future evaluation of the property.
1.4. Units and Currency
Metric measurements are used throughout the report, unless otherwise stated. Distance is stated in meters
or kilometers (1,000 meters) .Area is stated in hectares (has), equivalent to 10,000 meter2 or 1/100
kilometer2. Tonnages are metric tonnes and precious metals (gold and silver) are recorded as grams per
metric tonne (g/t). Base metals (copper, lead and zinc) are reported in weight percent (%). Other
references to geochemical analysis are in parts per million (ppm) or parts per billion (ppb) as reported by the
originating laboratory. Currency is expressed in US dollars (US$) unless noted.
Coordinates are projected to Zone 18 UTM based on the Provisional South America 1956 Datum (PSAD56).
1.5. Disclaimer
The author has assumed that all of the information and technical documents reviewed and listed in the
“Sources of Information” in Section 18 are accurate and complete in all material aspects. The report is based
on information known to the author as of March 31, 2013. The author has visited the Property on numerous
occasions and has verified the exploration work documented herein.
The statements and opinions expressed in this document are in good faith and in the belief that such
statements and opinions are not false or misleading at the date of the Report. The author reserves the right
to revise this report and conclusions should additional information become known subsequent to the date of
this report.
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2. PROPERTY LOCATION, ACCESS, DESCRIPTION, STATUS
AND PHYSIOGRAPHY
2.1. Property Location
The Utupara-Chapi Chapi Property is located in southern Peru approximately 130 kilometers southwest of
the city of Cusco and 510 kilometers southeast of Lima (Figure 2-1). The average altitude of the Utupara
Property is 4,000 meters. The Utupara-Chapi Chapi Project straddles the districts of Antabamba and
Huaquirca in the Province of Antabamba, Department of Apurimac. The approximate centre of the property
is located at utm 732,000 E, 8,412,000 N (14°21’ Lat S, 72°51’ Long W) and an altitude of 4,000 metres.
Cotabambas
Area
Cusco
Pisco
Los Bambas
Los Chancas
Utupara
Katanga
Eo
ce
ne
Tintaya District
Cu
Be
lt
Juliaca
Arequipa
0
200
Tacna
kms
Figure 2-1: Utupara-Chapi Chapi location map
6
2.2. Access to the Property
Access to the Utupara-Chapi Chapi project from Lima takes a full day. The property can be reached via a
number of routes, but travelling via Cusco is the most rapid. There are daily flights from Lima to Cusco and
flight time is approximately 1.5 hours. By road from Cusco via Abancay, the township of Antabamba can be
reached after 8 hours. Antabamba has basic accommodation and can be used as a base for operations.
From Antabamba to the project there is a 10 kilometre trip over a winding dirt road that takes about 1.5 hours
of travel time.
The property is accessible by road during the whole year. A four wheel vehicle is required since some parts
of the road can be slippery during the rainy season.The access is commonly steep but passable, requiring
many switchbacks to climb out of the steep valleys into the project area. The area of exploration interest
consists of an elevated area of smooth hills that can easily be traversed on foot or in some cases by four
wheel drive vehicle. Figure 2-2 shows a general topographic map with principal accesses to the project.
2.3. Property Description
According to the information obtained from the Public Registry of Peru:
 ALTURAS MINERALS S.A. is the formal current registered titleholder of the UTUPARA
Concessions.
 MINERA IRL S.A. (hereinafter, “IRL”) is the formal registered titleholder of the CHAPI CHAPI
Concessions.
The Utupara Sector of the property consists of seven contiguous claims held 100% by the local subsidiary of
Alturas Minerals Corp. (Alturas Minerals S.A.) – Martha Primera (598.3 has), Doña Esther (999.2 has),
Sandra D (989.3 has), Minnie 15 (690.4 has), Reto al Destino No. 2 (300.0 has), Doña Mary (999.3 has) and
Utupara-2007 (700.00 has), as listed in Table 2-1.
The Chapi Chapi Sector of the property consists of eight contiguous claims held by Minera IRL S.A. – Reto al
Destino No. 1 (1,000.0 has), Aluno Diecicho 2002 (1,000.0 has), Aluno Veinte 2002 (800.0 has), Aluno
Diecinueve 2002 (975.0 has), Aluno Diecisiete 2002 (523.0 has), as listed in 2-2.
Figure 2-2 shows a map of the claims forming the Utupara-Chapi Chapi Project (“Huarquirca Joint Venture”).
Table 2-1: Utupara Sector Claims
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Table 2-2: Chapi Chapi Sector Claims
8
Figure 2-2:
Utupara-Chapi Chapi Claims Map
9
2.4. Property Status and Deal Structure
2.4.1.
Standing
Based on a review of documentation provided to the Issuer by INGEMMET and the Public Registry of Peru:
 All of the Utupara and Chapi Chapi concessions are in good standing. This means that they are valid
and in full force and effect, and the author is not aware of any circumstance that could result in the
Concessions being declared extinguished by the Peruvian State;
 The mining concession´s title and registry with the Public Registry is in order: all the Concessions
have been granted the title of a mining concession, which is in all cases is firm and definitive5. All
the Concessions have also been recorded with the Public Registry;
 Registration of the concession title is the last step that has to be fulfilled in order to assure that the
mining concession title is enforceable before the State and third parties. Prior to registering the title,
the rights arising from the concession title exist and may be exercised by its holder, but do not have
the protection and publicity that the Public Registry provides.
2.4.2.
Rentals
The validity fee is a US$ 3.00 per hectare payment that holders of mining concessions are obliged to make
before June 30 of each year. Non-compliance with this obligation for two consecutive years results in the
cancellation of the respective mining concession. However, any payment made for the year following the one
in which said obligation has not been complied with, applies to the said year. Thus, unless paying twice,
future annual payments will apply to the immediate previous year.
According to the information obtained from INGEMMET, it has been determined that the validity fees
(rentals) for the Concessions have been paid with regard to all the years elapsed as from their filing.
2.4.3.
Penalties
Pursuant to the still applicable legal framework, in force since 1992, holders of mining concessions are
obliged to achieve a minimum production of US$ 100 per hectare per year, within six years following the year
in which the respective mining concession title is granted. If this minimum production is not reached, as of
the first semester of the seventh year, the holder of the concession shall pay a US$ 6 penalty per hectare per
year, until such production is reached (penalties increase to US$ 20 as from the 12th year). It is possible,
however, to avoid payment of the penalty if evidence is submitted to the mining authorities that an amount 10
times the applicable penalty or more had been invested. Nevertheless, this regime has been partially
amended (by Legislative Decrees No. 1010 and 1054 and its regulations enacted by Supreme Decree No.
54-2008-EM) providing for, among other matters, increased minimum production levels, new terms for
obtaining such minimum production, increased penalties in case said minimum production is not reached,
and even the cancellation of mining concessions if minimum production is not reached within certain terms.
Pursuant to this new regime, the holder of the mining concession should achieve a minimum production of at
least one tax unit (S/. 3,550, approximately US$ 1,246) per hectare per year, within a ten year term following
the year in which the mining concession title is granted. If such minimum production is not reached within the
referred term, the holder of the concession shall pay penalties equivalent to 10% of the aforesaid tax unit. If
the minimum production is not reached within a fifteen-year term following the granting of the concession
title, the mining concession shall be cancelled by the mining authority, unless (i) a qualified force majeure
event is evidenced to and approved by the mining authority, or, (ii) applicable penalties are paid and
investments of at least ten times the relevant penalties have been made; in which cases the concession may
not be cancelled up to a maximum term of five additional years. If minimum production is not reached within
an overall twenty-year term following the granting of the concession title, the concession shall inevitably be
cancelled. Note that the new minimum production levels (as provided by the amended regime) shall be
obtained from the Mining Concessions by the end of 2018; otherwise increased penalties arising for not
complying with this obligation shall be paid before June 30, 2019. However, until such new term for obtaining
the new minimum production level does not expire, the minimum production level, the term for obtaining such
minimum production, the amount of the penalties and the causes for cancellation of the mining concessions
shall continue to be those provided in the original legal framework (in force since 1992).
10
Penalties (for not reaching the minimum production levels specified under Peruvian mining law) are not yet
applicable to any of the Concessions, except for “RETO AL DESTINO No. 1”, whose penalties have been
paid with respect to all years in which they became due.
2.4.4.
Deals
On February 28, 2008, Alturas Minerals Corp. announced that it has entered into a letter agreement with
Minera IRL Limited, a Peruvian company listed on the London Stock Exchange (“IRL”), regarding its ChapiChapi copper-gold Property. The Chapi-Chapi property is adjacent to Alturas’ Utupara copper-gold Project,
and effectively doubles the prospective land position subject to exploration.
In February 2008, Alturas Minerals Corp. entered into a letter agreement with Minera IRL Limited, regarding
its Chapi-Chapi copper-gold Property. Under the terms of the original letter agreement the two parties
entered into a joint venture with IRL at 20% and Alturas at 80%. In order to maintain its interest, Alturas was
to complete drilling of 20,000 meters on the combined Chapi-Chapi and Utupara properties (“Huaquirca Joint
Venture”), and conduct a scoping study, all at its expense, such that Minera IRL would be carried through
this phase. Once Alturas had completed its obligations, pro-rata contributions would then have been required
by both parties in accordance with their percentage interests.
Due to financial constraints Alturas had been unable to meet the terms of the original arrangement. A new
agreement was entered into in 2010 and amended in January of 2011 and December of 2012 which requires
Alturas to commence drilling by June 30, 2013 and complete 9,502 metres of drilling and a scoping study by
December 31, 2013 (in addition to the 5,500 m drilled in 2011 and 2012) to earn an 80% interest in the entire
joint venture property. IRL will hold the residual 20% interest and will be subject to dilution provisions, with
the right to convert to a 2% NSR if their interest falls below 20% or a 3% NSR if their interest falls below
10%. Alturas would have the right to buy back the NSR for $5,000,000.
As per the information obtained directly from the Public Registry, the only liens or encumbrances that have
been registered and remain in force in connection with the concessions are as follows:
(i) an NSR royalty payable with respect to the “RETO AL DESTINO No. 1” concession to its former
holders Armando Aroni Castillo and Epifania Baca Campana, through a Transfer Agreement formalized
by public deed granted on December 7, 2005. Minera IRL previously agreed to pay the original owners
an NSR royalty upon initiation of the exploitation of the property and throughout “the extraction of gold
and its equivalents, until their depletion”. The NSR royalty varies from 1% to 2%: (i) 1% NSR if the price
of gold is below US$300 per ounce; (ii) 1.5% NSR if the price of gold is between US$301 and US$400
per ounce; and, (iii) 2% NSR if the price of gold exceeds US$400 per ounce.
(ii) An option agreement for the purchase of a 50% interest in the CHAPI CHAPI Concessions.
This agreement was formalized between Minera IRL and CORDILLERA DE LAS MINAS S.A.
(“CORDILLERA”), by public deed granted on November 11, 2005 when Minera IRL acquired title of the
properties from its former holder, CORDILLERA. This “claw back” option was granted for a one-year
period counted from the date in which a pre-feasibility study was delivered to CORDILLERA. The option
can be exercised at any time a “major discovery” was made (i.e. more than 3 million ounces of “fine” gold
and/or 1 million metric tonnes of “fine” copper) on any of the Chapi Chapi properties, except for “RETO
AL DESTINO No. 1” which was subject to a different agreement with a different owner as described
above. In order to exercise the option, CORDILLERA would have to pay IRL an amount equivalent to the
exploration investments incurred until that date in the CHAPI CHAPI Concessions.
th
In a registered agreement between Minera IRL and CORDILLERA dated December 15 2008, both
parties agreed to recognize the joint venture that existed between Alturas Minerals Corp. and Minera
IRL. In the case that Alturas were to complete its commitments under the Joint Venture agreement
described above, and thereby earn its 80% portion of the joint venture the:

If a discovery of a size BELOW the threshold of a “major discovery” outlined above were made,
then both parties agreed that Minera IRL would transfer 1/5 of its remaining interest in the JV
(i.e. 4% equity in the total joint venture) to CORDILLERA;
11

If a discovery of a size ABOVE the threshold of a “major discovery” outlined above were made,
then both parties agreed that Minera IRL would transfer would transfer 1/2 of its remaining
interest in the JV (i.e. 10% equity in the total joint venture) to CORDILLERA.
It should be noted that the consequence of this latter agreement between Minera IRL and CORDILLERA
is that Alturas will maintain the right to earn the full 80% equity in the Utupara-Chapi Chapi Joint Venture,
unencumbered by the “claw back” applicable only to Minera IRL´s remaining equity.
2.5. Physiography, Flora and Fauna
Steep hills and deep valleys characterize the area, with elevations reaching up to 4,500 metres. The highest
peaks in the area are Cerro Tajra (4,540 metres), Cerro Utupara (4,390 metres) and Pisco Orjo (4,155
metres). The relief is controlled by major NE-SW directed creeks and smaller NNW-SSE creeks. These
creeks are deeply incised and can have hundreds of metres height difference between valley floors and
ridge crests.
Vegatation consisting of short Alpine grasses cloth most of the hill slopes, and some larger trees cover parts
of the river valleys. To Alturas’s knowledge, the project is of no special significance to plant or animal species
as a habitat.
2.6. Climate
Weather is typical of high altitude regimes at this latitude, with colder temperatures during the months of
May to September with heavy rain, hail and snow common during the period from November to April.
Temperatures vary between a couple of degrees centigrade below zero during the night, up to 20°C during
the day in the last months of the year. The thermal chill factor, however, is much lower due to the common
wind and rain. However, by Peruvian standards the project is not high and many exploration projects and
mines operate up to 1,000 metres higher in elevation than the highest parts of Utupara-Chapi Chapi.
2.7. Local Resources and Infrastructure
The centre of the project is located about 5 kilometres directly east of Antabamba, where the power and
telephone lines finish. Access to the project from Antabamba has been constructed through a longer but
easier route that takes advantage of the topography. Water is abundant in the area, with several fast flowing
rivers dissecting the project area.
Local labour can be obtained from the villages of Huaquirca or Antabamba.
Significant investment in the social and infrastructural needs of the Department of Apurimac are currently
underway, driven mainly by these new mining developments such as the nearby Los Chancas and Las
Bambas copper-gold projects.
2.8. Environmental and Socio-Economic Issues
Prior to 2005, no audit or detailed environmental or archaeological review of the property had been
conducted. However, on the northwestern slope of Quebrada Utupara, there is an abandoned processing
plant from a gold mine that operated on the property until the early 1990's. There are tailings near the plant
but the volume of tailings from this operation is small because most of the tailings have been displaced by
gravity approximately 200 metres below the plant. These tailings were not thought to represent a significant
environmental liability.
12
As part of the Alturas´s policy to adhere to best practice environmental and social management of all of its
projects, the Corporation subsequently commissioned a number of environmental, social and archaeological
studies over the project during the period 2006-8. These are summarized as follows:
Before starting intensive work on the project, an Environmental Baseline Study was completed in
September 2006 by a local consulting group, Barrenachea y Rosemberg. This report detailed various water
and air quality issues, native flora and fauna, plus previous environmental liabilities caused by small scale
and informal mining. Subsequent reports detailed systematic and community-involved surface water quality
monitoring of waters draining the project from late 2006 onwards and are documented in a series of reports
by the same local consulting group. A specific report from early 2008 more completely documented previous
environmental liabilities present within the properties caused by the earlier gold mining activities.
Because of the sensitivities in operating within communal lands within Peru and the Corporation´s need to
understand the needs and aspirations of the local communities in this very poor part of the Andes, a Social
Baseline Study was completed in October 2006, and the report documented many aspects of the cultural
and social make-up of the local communities. Subsequent reports covered other aspects of the social
situation, including details of informative workshops held with some of the local communities. These studies
established that the majority of the project area (some 80%) lay within the community lands of the community
of Huarquirca and the remainder within the community of Antabamba.
A small area of pre-Columbian archaeological remains were located in the project centred around the crest
of Cerro Utupara and was the subject of an independent Archaeological Study funded by Alturas. This area
of ruins was protected with fences and was never subject to any disturbance during the exploration activities
of Alturas.
In addition to the environmental, social and archaeological aspects documented above, the drilling permitting
in Peru requires careful documentation and control of all of these factors during drilling programs and Alturas
.
applied for permission to drill from the Ministry of Energy and Mines in November 2006 Observations to
Alturas application were received from the ministry some months later and were answered by Alturas in June
2007. Alturas successfully received approval for diamond drilling from up to 20 platforms from the Ministry on
27th June 2007.
Further water quality monitoring is planned for the future if and when the Corporation embarks on more
detailed exploration.
Since the mining concessions comprising Utupara were not acquired from the previous owner by Alturas, but
were re-staked in their own right and are 100% owned by Alturas, any previous agreements with the surface
owner are null and void. Alturas was able to negotiate a new agreement covering the majority of the UtuparaChapi Chapi joint venture area, renewable every two years, with the community of Huaquirca prior to the
commencement of exploration activities and this agreement was in force until March 14, 2010. The issuer
subsequently sought and successfully obtained a new agreement in order to complete the 2011-12 drilling
program at Chapi Chapi.
The Issuer is currently negotiating the renewal of this agreement with the community for another two year
term and is optimistic that this will be achieved in the near future.
2.9. Environmental Regulations in Peru
The Peruvian Ministry of Energy and Mines establishes an environmental protection policy and proposes
maximum allowable levels for effluents, signs environmental administrative stability agreements. The
Supervisory Board Investment in Energy and Mines (“OSINERGMIN”), is the entity in charge of supervising
environmental obligations corresponding to mining companies.
Pursuant to Supreme Decree 38-98-EM approved on November 30, 1998, concession holders are required
to obtain an environmental permit from the Directorate for Environmental Affairs in order to carry out
exploration and development activities. Mining companies are responsible for the control of emissions,
discharges of effluent and disposal of all by-products resulting from their operations, and for the control of
substances that may impose any hazard, either due to excessive concentrations or prolonged exposure.
Decreto Supremo 038-98-EM, classifies mining exploration programs into three categories:
13

Category 1 is for general exploration activity and requires no authorization, fees or reporting to
the Ministry;

Classification 2 applies to drilling programs of less than 20 drillholes within a 10 hectare area.
An application must be submitted and a fee of approximately US$50 must be paid;

Classification 3 pertains to mining exploration programs with more than 20 drillholes, exploration
areas greater than 10 hectares, or construction of more than 50 metres of tunnels. Projects in
this classification must submit an application to the Ministry before the work is initiated. The
Ministry must approve or reject the “Evaluación Ambiental” within a period of 45 (business) days.
The application is considered approved if the ministry does not respond within that period.
Advancement to the mining phase requires an Environmental Impact Study (“Estudio de Impacto
Ambiental”), which the Ministry has 120 days to review. During this period the company must coordinate site
visits with ministry personnel. The EIA must include plans for an environmental program whose
expenditures cannot be less than 1% of the annual sales revenue. At this stage there is a requirement that a
PAMA (“Programa de Adecuación y Manejo Ambiental”, Environmental Management and Conformance) and
a Closure Plan (“Plan de Cierre”) are submitted. Full details on these requirements are found in the Mines
and Energy Ministry web page at www.mem.gob.pe Mining companies are subject to annual environmental
audits of operations by the Ministry of Energy and Mines.
2.10.Taxation and Royalties in Peru
Corporate net income is taxed at a rate of 30% of annual net income, subject to an additional 4.1% tax
applied to profits that are distributed to shareholders. Advance monthly payments are required on a
percentage of gross income, subject to a final settlement in March of the following business year (January 1
through December 31). There are currently no restrictions on the ability of a company operating in Peru to
transfer foreign currency to or from Peru or to convert Peruvian currency into foreign currency.
In June 2004, Peru’s congress approved a bill to allow royalties to be charged on mining projects. The
royalties payable on Peruvian mine production were at the following rates: 1.0% for sales up to US$60
million; 2.0% for sales between US$60 million and US$120 million; and 3.0% for sales greater than US$120
million. In the case of copper, the percentage royalty is a net smelter returns royalty, which cost is deductible
for income tax purposes.
On late September 2011, Peruvian President Humala signed three bills raising taxes and royalties on the
mining sector into law. Miners will now pay royalties of between 1% and 12% of their operating profits and a
windfall profits tax of 2% to 8.4% of their net profits. The replacement of the previous regime, under which
mining firms paid royalties at rates of between 1% and 3% on net sales, is expected to generate an extra
US$1.1 billion annually. Mining companies protected by tax stability agreements signed with the government
in the 1990s and do not currently pay royalties will be charged a “special contribution” of between 4% and
13.12% of their operating profits. The new regime will apply for a period of five years to fund infrastructure
projects and create employment in the nation’s poorest regions.
14
3. HISTORY
3.1. Pre-2004 Exploration – Utupara Sector
Exploitation of gold at Utupara dates as far back as Spanish colonial times. In the 20th century Utupara
hosted a small high grade gold mine that was worked intermittently between 1980 and 1991 by the small
Peruvian companies Compañia Minera Utupara S.A.. and Aurora S.A. Compañia Aurifera. A 50 tonnes per
day capacity cyanide /agitation treatment plant was constructed and ore exclusively exploited from the high
grade bedding-parallel veins or “mantos” in the quartzites. It is not known whether this plant operated at this
capacity or not. Since suspension of operations, the claims were held continuously by these parties until
being relinquished in 2004. However, a small number of informal miners continue to exploit and treat mineral
from the mine.
One of Peru’s larger mining companies, Compania Miñera Milpo S.A., held an option to explore and
purchase the property from the owners between 1996 and 2001. Milpo conducted the first modern
exploration program on the property, focusing mainly on geochemistry, geophysics and geological mapping
(Figure 3-1). Alturas now possesses a complete set of technical reports covering the work, supplied courtesy
of Milpo. Milpo´s work included:

A 1997 reconnaissance mapping and sampling program of 692 rock chip and channel samples from
various parts of the property, including 50 samples from the Utupara underground mine workings

2,000 meters of bulldozer trenching with geochemical sampling totalling 806 samples

14 hand-dug trenches

4 drillhole platforms

A systematic rock chip and soil sampling program over an area of approximately 2.1 x 1.6 km in
dimension completed in 2000. A total of 667 rock chip samples were collected, supplemented with
288 soil geochemical samples in areas of poor outcrop

A November 1999 Induced Polarization/Resistivity program over an area of 1.2 x 0.6 km around the
Cachorro Breccias (Jose Arce y Asociados)

A more extensive program of dipole-dipole Induced Polarization/Resistivity and ground magnetics
aong 17 of the rock chip/soil lines spaced 200 meters apart completed in July 2000 by Val DÓr and;

Five drillholes (including one re-drill) for an approximate total length of 902 meters plus 13 kilometers
of access road to the area.
In December 2000 Rio Algom Exploration (“RAE”) visited the property and took 12 rock chip samples.
Alturas was able to obtain a copy of their short technical report. This sampling represents a confirmatory
check on some of the geochemical sampling by Milpo
Milpo subsequently terminated the option in 2001 and the claims returned to the original owners, who
subsequently relinquished them a couple of years later. Alturas Minerals had previously targeted the area
and immediately pegged these old claims once they became available in June 2004.
3.1.1.
Geographic/Grid Control – Utupara Sector
The area was surveyed and the locations of trenches, access roads, drillhole platforms etc. have been
accurately located using GPS. The “Señal Cerro Añasino” is a second order tie point from the National Grid
System ( “Instituto Geográfico Nacional”) that is located within the boundaries of the property. A third degree
triangulation was apparently planned for the topographic survey.
The grids for the geochemical sampling and the IP sounding stations were surveyed using a theodolite. The
dipole-dipole induced polarization and magnetic surveys completed by Val D’Or were located using
differential GPS.
15
The digital data provided by Milpo is in UTM co-ordinates with a South America Datum 69 (SAD69) datum.
Drillhole collar coordinates reported were field checked by Alturas using a hand-held GPS and were found to
be located with respect to the PSAD56 datum. For better compliance with Alturas standards, all Milpo digital
data was transformed to the Provisional South America 1956 datum (PSAD56).
3.1.2.
Geological Mapping – Utupara Sector
During the years 1999 and 2000, Milpo mapped lithology and alteration over an area of approximately 2.7 x
2.7 kilometres. Aturas has field checked some of this mapping and has found that, although the position and
shapes of outcrops are accurate, the recognition of alteration types is inadequate. For example, the mapping
failed to recognize the extensive areas of potassic alteration characterized by secondary biotite and
Kfeldspar veining that is present over large areas of the property. It is clear that Milpo had a different, high
level setting in mind, leading to the emphasis on intrusive dome complexes and silicic alteration facies
(Figure 3-1).
Figure 3-1: Utupara detailed geological mapping previously completed by Milpo (sample). Note the
interpretation of high level extrusive domes as black dashed lines, which cannot be substantiated by Alturas.
Grid ticks are spaced 500 metres apart.
16
3.1.3.
Rock Chip Sampling – Utupara Sector
Milpo completed a 1997 reconnaissance program over Utupara, collecting 692 rock chip and channel
geochemical samples from various parts of the property, including 50 samples from the Utupara
underground mine workings..
During the year 2000, Milpo completed a 667 sample systematic rock chip grid over an area approximately
2.1 x 1.6 kilometres in dimension within the central part of the intrusive body. This grid consisted of NW-SE
lines spaced 100 metres apart, with samples approximately 50 metres apart. Additional rock chip samples
were taken in a loosely based pattern to the west of the existing one, and at random from road cuts, natural
cuts and outcrops.
Figure 3-2 shows the coverage of these two rockchip sampling campaigns. As noted earlier, strong copper
and gold anomalies were detected in the 1997 campaign at a number of outlying prospects; these were only
partially been followed in the later year 2000 grid sampling.
Figure 3-3 to 3-6 show the copper and gold results plotted in map and perspective view from the year 2000
sampling grid. Note that strong NE-SW and N-S trends are apparent in these data, reflecting an underlying
structural control on copper and gold mineralization.
Figure 3-2: Utupara rockchip sample locations collected by Milpo. Open squares are samples from the 1997
campaign, whilst filled squares are from the 2000 campaign. Note that the bulk of sampling is from within the
intrusive body. Grid ticks are spaced 1000 metres apart.
17
Figure 3-3: Utupara rockchip copper results in ppm from the 2000 grid sampling campaign. Grid ticks are
spaced 500 metres apart.
Figure 3-4: Utupara rockchip copper results gridded and draped over topography, looking north.
18
Figure 3-5: Utupara rockchip gold results in ppb from the 2000 grid sampling campaign. Grid ticks are
spaced 500 metres apart..
Figure 3-6: Utupara rockchip gold results gridded and draped over topography, looking north.
19
In December 2000 geologists from Rio Algom visited the property and took 12 rock chip samples, the
results of which are listed in the following table 3-1. These values confirm or repeat the general values
reported by Milpo at the same localities, although their locations are not well documented.
Table 3-1 Rio Algom rock chip sampling
Sample number
1394
1395
1396
1397
1398
1399
1400
4401
4402
4403
4404
4405
Cu ppm
44
39
18
708
14
478
913
2182
586
30
4793
633
Au ppb
544
131
476
75
64
23
87
242
31
8
286
13
As ppm
139
736
1200
10
6
2
9
61
2
2
18
2
Cd ppm
1.5
0.5
0.5
1.2
0.8
1.4
1.1
2
1.5
0.8
1.6
0.7
Sb ppm
68
59
105
2
2
2
2
2
2
2
2
2
Mo ppm
1
1
3
1
2
1
1
13
2
1
2
1
1394 Bx quartzites in Fe Oxides matrix, 1 mm thick veinlets
1395 White sandy quartzite w/ fractures filled W/ limonites
1396 As above
1397 And/dioritic fragments in a polymictic tectonic Bx, UTP-1 body, strongly magnetic, py<4%
1398 Mod seritized, strongly argillic altered dacitic dome, Py<3%,specularite<2%.
1399 Mod.propilitized (chl+epi) altered fine grain dark diorite.
1400 5m rock chip in a strongly propilitized altered Di/Gd in a stockwork zone.
4401 As above, only from the stockwork veins.
4402 10m rock chip in the hematitic limonitic gossan of Cocorpiña skarn.
4403 Epidotized dioritic dome, Py<5%.
4404 Andesitic comp Bx rock w/calcite veins w/py+po+cpy<5%, mod to locally strong propyllitic alt.
4405 5m rock chip in a strongly propilitized altered Di/Gd in a stockwork zone.
3.1.4.
Soil sampling – Utupara Sector
Concomittant with the collection of the grid rockchip samples in the year 2000, Milpo collected 288 samples
within the same grid. These samples provided coverage in the area where there was no outcrop available for
sampling. Figures 3-7 and 3-8 show the copper and gold results obtained in this sampling.
Note that these results generally confirm the position and shape of the copper and gold anomalies revealed
by the rockchip sampling, although there appears to be more dispersion of the soil anomalies from their
bedrock sources (particularly in the case of copper). This is possibly in part associated with hydromorphic
(i.e. groundwater) processes, suggesting the possible leaching of copper from outcrops and redistribution
through the permeable soil profile (see discussion below).
20
Figure 3-7: Utupara grid soil copper results in ppm (triangles). Rock chip samples collected on the same grid
are shown as black spot symbols. Grid ticks are spaced 500 metres apart.
21
Figure 3-8: Utupara grid soil gold results in ppb (triangles). Rock chip samples collected on the same grid
are shown as black spot symbols. Grid ticks are spaced 500 metres apart.
22
3.1.5.
Trenching and Channel Chip Sampling – Utupara Sector
Milpo executed three phases of trench sampling along roads and cuts within the area of the Cachorro
Breccias and the Corcopiña skarn zone. These results are reported in December 1998, June 1999 and
February 2000. Results of these programs are covered in Figure 3-9 and Table 3-2 and indicate some wide
(tens to hundreds of metres) zones of low grade copper-gold mineralization.
Figure 3-9: Utupara trench and platform sample locations by Milpo, shown as black circles. Red lines are
continuous trench sample intervals averaged in the table below. Distance between grid ticks is 500 metres.
Dataset
June99
June99
June99
June99
June99
June99
June99
Jan00
Jan00
Jan00
Jan00
Jan00
Jan00
Jan00
Jan00
Jan00
Jan00
Jan00
Jan00
Jan00
Jan00
Jan00
Jan00
Dec98
Dec98
Dec98
Dec98
Dec98
Dec98
Dec98
Dec98
Interval
T-I
T-II
T-III
T-IV
T-V
T-VI(a)
T-VI(b)
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
1
2
3
4
5
6
8
9
Width(m) Cu_av(ppm) Au_av(ppb)
65
45
115
85
150
35
35
35
25
20
55
55
55
60
185
120
35
60
25
35
50
40
25
120
110
220
110
150
370
290
210
432.14
431.4
103.17
187
540.47
100
802.75
1790.71
1038.8
1973.75
1986.55
4446.91
3221.64
1652.17
713.92
314
650.57
107.75
258.4
1371.86
1501.8
582.25
172.8
317.18
680.27
702.77
1160.25
1079.2
1114.41
346.14
360
Summary
54.57
65m @ 432.14ppm Cu, 54.57ppb Au
64.2
45m @ 431.4ppm Cu, 64.2ppb Au
139.33
115m @ 103.17ppm Cu, 139.33ppb Au
248.22
85m @ 187ppm Cu, 139.33ppb Au
194.93
150m @ 540.47ppm Cu, 194.93ppb Au
149
35m @ 100ppm Cu, 149ppb Au
52.75
35m @ 802.75ppm Cu, 52.75ppb Au
48.57
35m @ 1,790.71ppm Cu, 48.57ppb Au
47.8
25m @ 1,038.8ppm Cu, 47.8ppb Au
58
20m @ 1,973.75ppm Cu, 58ppb Au
43.91
55m @ 1,986.55ppm Cu, 43.91ppb Au
343.27 55m @ 4,446.91ppm Cu, 343.27ppb Au
126.36 55m @ 3,221.64ppm Cu, 126.36ppb Au
82.75
60m @ 1,652.17ppm Cu, 82.75ppb Au
251.81
185m @ 713.92ppm Cu, 251.81ppb Au
278.83
120m @ 314ppm Cu, 278.83ppb Au
73.71
35m @ 650.57ppm Cu, 278.83ppb Au
314.75
60m @ 107.75ppm Cu, 314.75ppb Au
146.8
25m @ 258.4ppm Cu, 146.8ppb Au
73.86
35m @ 1,371.86ppm Cu, 73.86ppb Au
89.9
50m @ 1,501.8ppm Cu, 89.9ppb Au
39.63
40m @ 582.25ppm Cu, 39.63ppb Au
40.6
25m @ 172.8ppm Cu, 40.6ppb Au
162.64
120m @ 317.18ppm Cu, 162.64ppb Au
201.91
110m @ 680.27ppm Cu, 201.91ppb Au
50.32
220m @ 702.77ppm Cu, 50.32ppb Au
55.17 110m @ 1,160.25ppm Cu, 55.17ppb Au
115.47 150m @ 1,079.2ppm Cu, 115.47ppb Au
129.38 370m @ 1,114.41ppm Cu, 129.38ppb Au
16.45
290m @ 346.14ppm Cu, 16.45ppb Au
33.86
210m @ 360ppm Cu, 33.86ppb Au
Table 3-2: Utupara trench results by Milpo, composite widths calculated by Alturas.
23
3.1.6.
Geophysics – Utupara Sector
3.1.6.1. Jose Arce – Geofísicos de Exploration Work
During November 1999 Jose Arce – Geofísicos de Exploración, a well-known Peruvian geophysics
company, did 50 Induced Polarization (IP) soundings on the property. The soundings are restricted to an
area 1,300 x 600 metres in size in the Cachorro area, including Breccia I and part of Breccia II. They extend
to the east of the breccias but do not cover the Tajra area. Alturas has not placed a great deal of weight on
these results partly because of the small size of the survey area.
Figure 3-10 shows the chargeability as calculated from the IP soundings. The scale indicates values from 22
to 70 mV/V, with a background of 10mV/V. These numbers indicate that the whole area is anomalous, with
increasing chargeability to the east. There seems to be no clear correlation between lithology and
chargeability.
Figure 3-10 Utupara Cachorro area IP soundings and calculated real chargeability. Grid ticks/squares are
spaced 200 metres apart.
Resistivity (Figure 3-11) shows values from 88 (cyan) to 962 (white) ohm-m and anomalies are more
discrete. Three low resistivity (i.e. high conductivity) anomalies are present in the map. The central one
coincides with the Utupara I breccia, the southwestern-most coincides with the Utupara II breccia body. A
third anomaly on the northwestern sector of the survey is part of the Cachorro area. The first two areas are
clearly mineralized but have been tested by trenching and drilling.
24
Figure 3-11: Utupara Cachorro area IP soundings and calculated real chargeability. Grid ticks/squares are
spaced 200 metres apart. Note inverse colouring where zones of low resistivity (high conductivity) are
depicted in the warmer colours.
Interpretation of these results is difficult given the relatively small area of the survey and the uncertainties in
the geophysical properties of the various alteration and mineralization types. The untested low resistivity
anomalous area on the northwest quadrant of the survey coincides with general low chargeability but may be
a target. Surface geochemistry in that area shows strongly anomalous copper but low gold. On the eastern
part of the survey, on Cerro Tajra, two smaller anomalies extending in a NNW-SSE direction and broadly
coincides with the location of the fault that appears to control skarn mineralisation 650 metres to the SSE.
This structure is a possible target at depth. Discrete high resistivity areas coinciding with surface
geochemical anomalism possibly represent concealed quartz stockwork –style mineralization and potentially
are targets.
25
3.1.6.2. Val D’Or SAGAX Work
Val D’Or SAGAX exceuted a combined program of ground magnetics and dipole-dipole Induced Polarization
/ Resistivity, not without some controversy within Milpo as to the relative merits of sounding versus dipoledipole methods.
Figure 3-12: Utupara geophyscial line locations for the Val D’Or SAGAX ground magnetics and IP /
Resistivity surveys. Grid ticks are 500 metres apart.
3.1.6.3. Ground Magnetic Survey
The survey was conducted by Val D’Or SAGAX in July 2000 with two GSM-19 total field magnetometers.
Measurements was conducted on 17 lines of nominal length 2.10 kilometres oriented N120E and spaced
100 metres apart. One unit was mobile while the other served as a static base station to monitor the diurnal
variations of the magnetic field. The static and mobile unit’s sensors were mounted on top of 2.5 metre long
non-magnetic staffs in order to minimize near-surface effects. The static unit recorded the magnetic field
every 10 seconds, while measurements were manually taken every 10 metres, with detail at 5 metre
intervals in anomalous zones.
Figure 3-13 shows a total magnetic field contour map / image resulting from this survey. Note that, because
of the low magnetic latitude of Peru, the map is inversely coloured such that high magnetic susceptibility
areas appear in the warmer colours. This is a workable approximation to a normal “reversed to pole” map.
Parallel east-west magnetic “ridges” are clearly apparent, which either reflect zones of magnetic (magnetite
and/or pyrrhotite) alteration or magnetic dykes. A zone of clear offset / disruption of these trends occurs
through the central part of the magnetic map, and we interpret this as reflecting a zone of broadly NNW-SSE
striking faults. These interpreted structures are also clearly apparent in other images such as Induced
Polarization and Resistivity.
26
Figure 3-13: Utupara Val D’Or SAGAX ground magnetics image. Grid ticks are 500 metres apart.
3.1.6.4. Induced Polarization / Resistivity Survey
As for the magnetics survey, this work was conducted on 17 lines of nominal length 2.10 km oriented N120E
and spaced 100 metres apart. The current and potential points consisted on corrugated steel plates buried
in shallow pits filled with water and covered with dirt. The pits were prepared in advance in order to allow for
the ground contacts to stabilize. Dipoles were set at 50 metre intervals with a separation factor of 1 to 6.
The electrode array was set up as dipole-dipole.
Figures 3-14 and 3-15 show example images of the Induced Polarization and Resistivity respectively. Both
show abundant strong anomalies, of hundreds of metres dimensions, that cross several lines. In general
there is a broad agreement between the Induced Polarization gradients derived from the soundings and from
the dipole-dipole arrays (although the dipole-dipole method appears to more accurately resolve individual
anomalies).
27
Figure 3-14: Utupara Val D’Or SAGAX Induced Polarization image (n=1). Grid ticks are 500 metres apart.
Figure 3-15: Utupara Val D’Or SAGAX Resistivity image (n=1). Grid ticks are 500 metres apart. Zones of
low resistivity (high conductivity) are depicted in warmer colours.
28
Val D’Or SAGAX produced a composite interpretation of the results of the Induced Polarization / Resistivity
surveys (Figure 8-16). This interpretation maps out the surface projection of various anomalies as colour
bars along the survey lines, and readily defines continuous linear to arcuate “Induced Polarization Axes”
striking between NNW-SSE and NE-SW. These axes most probably represent zones of disseminated
sulphides and tend to anastomose around deeper high resistivity zones that possibly correlate with more
siliceous intrusives or zones of siliceous stockworking. In general the zones of high chargeability tend to
correlate with zones of low resistivity (high conductivity). However, there are places where zones of high to
very high chargeability correspond to zones of high resistivity such as in the Tajra area.
Figure 3-16: Utupara Val D’Or SAGAX Induced Polarization / Resistivity interpretation. Grid ticks are 500
metres apart. Deep zones of high resistivity are depicted in blue.
29
3.1.7.
Drilling – Utupara Sector
3.1.7.1. Milpo Work
During November and December 2000 a reverse circulation (RC) program of five holes was completed at the
Utupara project. Figure 3-17 shows the location and trace of these drillholes with respect to the mineralized
zones originally defined by Milpo, whilst Table 3-3 lists the collar ccordinates of those drillholes. Note how all
of the drilling was concentrated in a rectangular-shaped area of approximately 800 x 200 metres elongated
in an E-W direction.
Hole Id
Easting
Northing
Relative Level
Azimuth
Dip
Planned
Depth
Reached
depth
Date
started
Date
finished
1
8411854
735650
4310
N62W
-50
300
160
20001111
20001208
2
8411939
734794
4146
N72E
-50
300
168
20001129
20001202
2A *
8411940
734800
4145
N72E
-50
300
117
20001113
20001115
3
8411800
734824
4172
N70E
-50
300
228
20001115
20001129
4
8411710
735317
4170
N60W
-50
200
190
20001204
20001207
5
8411770
735050
4218
S75W
-50
200
156
20001209
20001210
Table 3-3: Utupara drillhole details (Milpo work)
The contractor was ST Lambert, a Canadian company based in Peru, using a Maxidrill (CAT-312) rig. A
CAT-700 supplementary air compressor (booster) was added after problems with high water flows were
encountered. While the program called for drilling down to 300 metres to reach the designed targets, none of
the holes reached the designed target depth. Water was present in all drillholes from 20 to 40 metres depth.
Below 100 metres the water flow exceeded 6 litres/second and the booster was added to the air supply
allowing a maximum depth of 228 metres to be achieved in drillhole RCD-3. The highly fractured ground also
impeded the fast drilling of the project.
Average sample recovery was carefully calculated by Milpo and found to be the quite poor over the RC
holes: RC-1 51%; RC-2 52%; RC-3 51%; RC-4 58.5%; RC-5 44%. Significant sample loss (as sulphides
in the fine fraction) is probable and geochemical grades are likely to have been underestimated. One of the
important conclusions reached by Milpo was that the RC method was not appropriate at this project.
30
Figure 3-17: Utupara reverse circulation drillholes completed by Milpo. Note how all of the drilling was
executed around the Cachorro Breccia bodies. Grid ticks are 500 metres apart.
RC1: 0-108m108m @ 0.33% Cu, 0.24g/t Au
RC2A: 0-168m168m @ 0.10% Cu, 0.032g/t Au
RC3: 0-120m120m @ 0.15% Cu, 0.069g/t Au
3-D Perspective
Looking North
Figure 3-18: Utupara reverse circulation drillholes shown in 3-D perspective.Surface rock chip geochemistry
samples are also shown, colour coded according to the copper content in ppm, in the same way as the
downhole assays in the drillholes.
31
3.1.7.2. Drillhole Sampling and assaying
Samples for geochemical purposes were obtained every two metres. There are no indications in the Milpo
reports of the method used to obtain the samples; however it is mentioned that the samples were split and
between 10 and 12 kilograms were sent for analysis.
The samples were assayed for gold by fire assay using a 30 gram split, whilst copper and 35 other elements
were analysed by ICP after a HCl-HNO3 digestion.
A total of 510 samples were sent for analysis at Bondar Clegg and certificates for 460 of the samples were
provided in the reports.
No blanks or standards were added to the sample stream.
3.1.7.3. Recoveries
Recovery was not measured directly by Milpo but calculated from a theoretical weight of a solid 2 metre
sample. This theoretical value was obtained assuming a specific gravity of 2.7 grams/cubic centimetre, and
applied to all samples without regard to the possible mineralization, alteration or variations due to different
lithologies.
The reported values for recovery are considered to be a very rough estimate and may be used as a relative
measurement, but it is not recommended that they be added to the assay database. In any case, the
recoveries are very low, averaging 50-60% for all holes.
3.1.7.4. Bulk Density Determinations
Milpo used a simple geometrical method was used to determine the bulk density of the samples. This
method is based on calculating the volume of the core hole and the average weight of the sample as it
comes out of the cyclone separator.
The volume is calculated based on the theoretical diameter of the drill bit (4 7/8 inches in this case) and the
length of the interval. The mass of the sample was obtained by weighing the product from one of the
drillholes (RCD-4) that this gave an average weight of 70.5 kg. There is no mention in the report about how
this weight was obtained, if from dry or wet samples, if fines were collected for weighing or not, or if the
lithology / alteration / mineralisation were considered as factors that could affect the sample weight. The 2.9
grams/cubic centimetre value obtained by this method is more than the value used for the recovery
calculation.
Because of the multiple variables not considered in this methodology, the values reported, as well as the
calculated recuperation factors, are considered to be generally unreliable.
32
3.1.8.
Petrographic and Mineralogical Studies – Utupara
Sector
Milpo undertook petrographic study of four rock samples:

UTP632, from the top of the “Domo Antiguo”, was described as a slightly argillized and oxidized
trachyandesite with pyroxene;

UTP607 is a feldspar breccia, slightly argillized and silicified, located on the SW extension of Cerro
Tajra;

UTP–557 is a slightly argillized biotitic monzonite grading to trachyte with significant oxidation;

UTP-542 is an argillized feldspathic rock with jarosite.
3.1.9.
Historic Exploration Expenditures – Utupara Sector
Alturas has estimated Milpo’s historic exploration expenditure on the property was a total of US$
348,000.
3.1.10. Conclusions Concerning Previous Exploration Work by
Milpo – Utupara Sector
Historic exploration by Milpo has been completed in accordance with standard exploration practices.
Howvere, the following points are emphasized:

Virtually all detailed surface work was focussed within an area 2.5 x 2.5 kilometres in dimension
within the Martha Primera and Doña Esther claims. Geochemically anomalous mineralized zones
detected outside of this area during 1997 reconnaissance work were not followed up,

Sampling and drilling work did not test for the possibility of bulk minable gold mineralization within
the quartzites, where a small high grade mine occurs;

The extent of porphyry-style potassic and phyllic alteration within the intrusive, plus their relationship
to surface copper-gold distribution, was not emphasized in the previous work. Largely untested
potassic alteration areas correlate strongly with copper and gold anomalism, with the phyllic zone
possibly destroying or terminating metal trends;

All drilling was focussed within a 0.9 x 0.25 kilometre –sized area exclusively around the Cachorro
Breccias, and mainly within the zone of phyllic overprint. This area represents a very small
percentage of the total alteration / mineralization system;

Numerous technical difficulties were experienced in the RC drilling, including high water pressure
and loss of sample (particularly the fines). In fact, an average sample recovery of around 50% was
reported for the entire program, raising the possibility of significant copper-gold grade underestimation.
33
3.2. Pre-2005 Exploration – Chapi Chapi Sector
The Chapi Chapi Property comprises the following prospects: Rumichaca, Chapi Chapi, Cullimayoc (central
Cullimayoc, South Cullimayoc, High West and Low West Cullimayoc) and Chaicha Prospects.
The first work known within the property consisted of 6 trenches in the central part of the Chapi Chapi
properties, in the zone of the Chapi Chapi Cu-Fe skarns: the results are unknown.
In 1992, Compañía Minera Argento S. R. Ltda. apparently carried out trench workings and nine drillholes
totalling 450 meters in the Chapi Chapi Prospect under areas of Cu-Fe skarn. The limited shallow drilling at
that time led that company to the conclusion that the zones of skarn mineralization were small and probably
uneconomic. In the Chapi Chapi Project they carried out rock sampling defining a wide area of weak
mineralization in argillic alteration but the results apparently were not satisfactory and the prospect was
abandoned.
During 1996 and 1997 Corriente Resources Inc carried out intense exploration in the adjacent Reto al
destino 3 (Chama Project), an area of epithermal alteration located to the northeast of the Chapi Chapi skarn
bodies. This zone is within a small third party property that does not form part of the current Joint Venture
area. This work was reported in various press releases from that era made by Corriente Resources. In that
zone they completed mapping, rock chip sampling on grids, and soil sampling, which defined a number of
anomalous areas of gold. Rock chip samples reported interesting gold values from 1.0 - 2.2 grams/tonne
gold. Those anomalies led to the drilling of 14 diamond drillholes, totaling 3,896.75 meters. The results of the
drillholes reported values between 0.34-0.62 grams/tonne gold which differed significantly from the surface
samples. Additionally the Cullimayoc and Chaicha Prospects, which do lie within the current Joint Venture
area, were subject to mapping, and soil-rock sampling on grids. Later Corrientes Resources Inc abandoned
the Property.
Minera IRL S. A. (MIRL) took up the option over the small Reto al Destino 3 (Chama) Property and from
June to November of 2004 re-evaluated the property that was abandoned by Corrientes Resources Inc in
1997. In addition MIRL negotiated and acquired the surrounding properties now forming the Chapi Chapi
Property which are included in the Joint Venture with Alturas.
Field work completed by MIRL within the Chapi Chapi Joint Venture area during 2004-5 consisted of:

Semi-regional 1:10,000 scale geologic mapping over an area 9.0 x 8.5 kilometers

Stream Sediment Sampling over an area of 10 x 10 kilometers (236 samples)

Rock Chip geochemical sampling in various areas (325 samples)

Trench geochemical sampling, collected over average 3 meter sample widths (300 samples)

Ground Magnetic Survey, comprising 364 line kilometers over an area of 8 x 8 kilometers
3.2.1.
Geographic/Grid Control – Chapi Chapi Sector
The locations of trenches, access roads etc. appear to have been accurately located using GPS. Checks
provided by Alturas indicate a reasonable agreement.The digital data provided by MIRL is in UTM coordinates with a Provisional South America 1956 datum (PSAD56).
3.2.2.
Geological Mapping – Chapi Chapi Sector
MIRL completed a 1:10,000 generalized geological map over an area 9.0 x 8.5 kilometers in size (Figure 319). Basic lithologic and alteration units, major faults and some structural data were supplied to Alturas in
digital format.
34
Figure 3-19: Geological mapping at 1:10,000 scale completed by MIRL in 2004-5. Blue polygons are the
Chapi Chapi properties. Shaded green area is the Reto al Destino 3 (Chama) Property which is not included
within the Utupara-Chapi Chapi Joint Venture .
3.2.3.
Stream Sediment Sampling – Chapi Chapi Sector
MIRL completed a semi-regional stream sediment sampling program over an area of 10 x 10 kilometers (236
samples) – see Figure 3-20. The objective of the stream sampling was to confirm the presence of concealed
alteration-mineralization, and mainly around the Chapi Chapi Prospect.
Samples were seived to -40 mesh and were of 5 kilograms in weight, later reduced to 2 kilograms weight.
Total samples were 236, of which 58 samples were of 5 kilograms and 178 samples of 2 kilograms weight.
For comparitive purposes, 19 selected samples of 5 kilograms weight were anayzed by ALS CHEMEX (for
Fire Assay mesh -80 analyzed by Au-AA24 + ICP, Fire Assay Pan Concentrated Au-AA23 +ICP and Bleg
Au-AA12 and Ag-AA12). For additional information, 217 stream sediment samples were analyzed by Fire
Assay mesh -80 Au-AA24 + ICP.
35
Figure 3-20: Stream sediment geochemical sampling completed by MIRL in 2004-5. Blue polygons are the
within the Utupara-Chapi Chapi Joint Venture .
3.2.4.
Rock Chip Geochemical Sampling – Chapi Chapi Sector
MIRL completed reconnaisance rock chip sampling (325 samples) concentrated along a NW-SE striking belt
extending along strike from the Chama epithermal gold Property into the current Utupara-Chapi Chapi Joint
Venture area (Figure 3-21).
Samples were analyzed for gold by fire assay and a suite of other metals (10 elements) by ICP methods.
36
Figure 3-21: Rock chip reconnaissance geochemical sampling completed by MIRL in 2004-5. Blue polygons
are the Chapi Chapi properties. Shaded green area is the Reto al Destino 3 (Chama) Property which is not
included within the Utupara-Chapi Chapi Joint Venture.
3.2.5.
Trench Geochemical Sampling – Chapi Chapi Sector
MIRL completed trench/channel geochemical sampling, collected on average 3 meter sampling widths (300
samples) over a number of key prospects in skarn and siliceous epithermal-altered volcanic rocks. Figure 322 summarizes the location of this sampling.
Samples were analyzed for gold by fire assay and a suite of other metals (36 elements) by ICP methods.
37
Figure 3-22: Trench/Channel reconnaissance geochemical sampling completed by MIRL in 2004-5. Blue
polygons are the Chapi Chapi properties. Shaded green area is the Reto al Destino 3 (Chama) Property
which is not included within the Utupara-Chapi Chapi Joint Venture.
3.2.6.
Ground Magnetics Survey – Chapi Chapi Sector
The whole of Chapi Chapi Property was covered by a ground magnetics survey by Geofisica Consultores
S.R.L, a Lima-based geophysical consultancy (Figure 3-23). The area covered was 8 x 8 kilometers in size
and consisted of program of 364.65 kilometers of north-south survey lines (43 lines in all). Line spacing was
200 meters and station readings were spaced approximately 10 meters apart. These surveys were carried
out using five GEM magnetometers, including four mobile units for the field work and one for the fixed base
station.
Due to the very low magnetic declination, the magnetics data has been processed “reversed to pole” in order
to highlight the approximate locations of the “real” magnetic anomalies defined by areas of probable high
magnetic susceptibility. The earth´s magnetic field in this area has Inclination (I) of -3º42´ and magnetic
declination (D) of -3º30´
38
Figure 3-23: Ground magnetics survey image (reduced to pole) completed by MIRL in 2004-5. Blue
polygons are the Chapi Chapi properties. Shaded green area is the Reto al Destino 3 (Chama) Property
which is not included within the Utupara-Chapi Chapi Joint Venture.
3.2.7.
Drilling – Chapi Chapi Sector
In 1992, Compañía Minera Argento S. R. Ltda. apparently completed nine shallow drillholes totalling 450
meters in the Chapi Chapi Prospect under areas of copper-gold skarn. The limited shallow drilling at that
time led that company to the conclusion that the zones of skarn mineralization were small and probably
uneconomic.
3.2.8. Historic Exploration Expenditures – Chapi Chapi
Sector
MIRL do not present data on exploration expenditure within the Joint Venture in the period 2004-2005.
Alturas estimated this expenditure to be in the order of US$ 100,000.
39
3.2.9. Conclusions Concerning Previous Exploration Work by
MIRL – Chapi Chapi Sector
MIRL´s previous activities in the area were heavily focused on the evaluation of the “Chama” or Reto al
Destino No. 3 Property, which hosts an area of gold mineralization hosted by high sulfidation alteration.
Within the current Utupara-Chapi Chapi Joint venture area, exploration has only been of a reconnaissance
nature.
MIRL recognized a number of skarn and high sulfidation prospects within the Joint Venture area that have
only received surface rock chip and channel sampling, and that require followup. Alturas Minerals recogized
the potential of these targets and through an earn-in arrangement aims to acquire a majority interest in the
properties through expenditure.
40
4. GEOLOGICAL SETTING
4.1. Tectonic Setting of Southern Peru
The following history is based on a compilation and synthesis of available geological and published data
by Alturas.
The Andean Cordillera is the result of three major geodynamic cycles: Precambrian, Palaeozoic to Early
Triassic and Late Triassic to Present. Altough the earlier cycles set up the crustal rheological
architecture for the later cycles, it is really only the last cycle that produced significant copper and gold
deposits in the Peruvian Cordillera.
Proterozoic crust was accreted in mobile belts around Archaean cores, the latter of which is recognized
as the Guyana-Amazon cratons. Proterozoic basement, exposed in isolated windows, comprises the
basement complex to southern Peru and consists of gneisses, granulite and schists. Strong reworking of
these complexes probably occurred during the Late Proterozoic Grenvillian Orogeny.
Lower Palaeozoic marine clastic sequences were deposited on this basement in a tectonic environment
that is not well understood. Upper Palaeozoic siltstones, sandstones and limestones were later
deposited in a marginal marine environment in a probable passive margin environment. During the late
Palaeozoic (Hercynian Cycle), the western margin of South America was an active margin environment
and these sequences were folded, faulted and uplifted. Orogenic gold mineralization formed well inland
in the Puno region and into adjacent Bolivia.
The latest tectonic cycle commenced with the opening of the South Atlantic in the Triassic. During the
Triassic up until the Late Cretaceous, a thick sequence of clastic sediments and limestones was
deposited in a fluviatile to deep water marine environment throughout southern Peru. This deposition
probably involved at least two basin-forming extensional events, each associated with important intrusive
and volcanic activity. Two magmatic belts / arcs, one closely following the present coastline and the
other well inboard passing through the Cusco-Puno departments, developed in various diachronous
pulses throughout the Mesozoic.
The Late Cretaceous - Early Tertiary marked the beginning of a new compressional tectonic cycle
(Andean Cycle) that was punctuated by numerous alternating volcanic, magmatic and deformational /
uplift events (Figure 6-1). These were essentially driven by the subduction of the Nazca Plate eastwards
under the South America Plate. The geometry and character of these tectonic events was closely linked
to variations in the dip of the subducting Nazca Plate, plus changes in the relative convergence rate and
azimuth. Discrete compressive episodes can be recognized as the: Peruvian (84-79 Ma), Incaic I (59-55
Ma), Incaic II (43-42 Ma), Incaic III (30-27 Ma), Incaic IV (22 Ma), Quechua I (17 Ma), Quechua II (8-7
Ma) Quechua III (5-4 Ma) and the Quechua IV (early Pleistocene).
To start with, orogeny and uplift resulted in widespread regression and the Mesozoic and older
sequences were intruded in the Paleocene-Early Eocene by a batholithic complex associated with
important porphyry and skarn copper mineralization along the present southern Peruvian coastline.
Important manifestations of this pre- Incaic Orogeny copper belt in southern Peru include the Toquepala,
Quellaveco, Cuajone and Cerro Verde porphyries, which are distributed along an important NW-SE
striking regional structural corridor known as the Incapuquio Fault Zone.
Important Incaic II orogenic activity, commencing in the Mid to Late Eocene and continuing into the
Oligocene, was accompanied by further copper-gold-molybdenum mineralised systems at important
localities in Apurimac, Cusco and Puno such as Tintaya-Antapaccay, Las Bambas and Los Chancas.
This orogeny formed broad fold structures with NW-SE to NNW-SSE strikes in the earlier sequences.
Deposition of significant volumes of continental volcanic sequences commenced in the Oligocene-Lower
Miocene with the eruption of the Tacaza Group. Later pulses of volcanic activity throughout the Neogene
deposited a number of important lava and pyroclastic sequences. The latest of these include the Barroso
Group, which ranges in age between Miocene-Pliocene and Pliocene. The Neogene events were
particularly productive with respect to emplacement of large gold deposits, the Lower Miocene to the
Lower Pliocene being the most significant mineralizing period in this part of Peru.
41
Figure 4-1: Composite chronostratigraphic summary, Late Cretaceous-Cenozoic, Andean region (after
Benavides-Caceres).
4.2. Regional Geological Setting
Utupara-Chapi Chapi lies within the Andahuaylas-Yauri Belt of southern Peru, an emerging and increasingly
important porphyry copper and skarn belt (Perello et al., 2003). The Belt strikes NW-SE and can be traced
for more than 300 kilometres of strike length. The Andahuaylas-Yauri hosts important copper-goldmolybdenum camps/deposits at Las Bambas, Los Chancas, Cotambambas and Tintaya and is probably a
northern extension of the copper-rich belt of the same Eocene-Oligocene age that strikes broadly N-S in
Chile (Figure 4-2). In Chile, this Belt broadly follows the trace of the “West Fissure” Fault and hosts giant
deposits of similar age such as Escondida, Zaldivar, Chuquicamata, and El Salvador. Figure 4-3 shows
significant deposits within the Peruvian segment of this belt.
42
Figure 4-2: Eocene-Oligocene age porphyry and skarn deposits of Chile and Peru, showing the location of
the Utupara-Chapi Chapi Property (after Perello et al., 2003).
Figure 4-3: Principal Eocene-Oligocene age porphyry and skarn deposits in Peru, showing the location of
the Utupara-Chapi Chapi Property.
43
In the Utupara-Chapi Chapi region, dismembered blocks of Precambrian metamorphic rocks form the
basement. Mesozoic sequences, comprising several thousand metres of mainly Jurassic-Cretaceous marine
clastic sediments and limestones, were deposited in a broad marine shelf to deep water environment on this
basement.
Stratigraphically the following units are recognised (from older to youngest):

Soraya Formation (Lower Cretaceous) - whitish, fine- to medium-grained quarzites and sandstones.
It outcrops as medium to thick (up to 5 metres) beds forming ridges like the one at Cerro Utupara;.

Mara Formation (Lower Cretaceous) - sandstones with shale and quartzite conglomerate
intercalations;

Ferrobamba Formation (“Middle” Cretaceous).-dark limestones with fossils and chert nodules.
During the Eocene to Early Oligocene these sequences were intruded by an extensive Batholith complex
(Andahuaylas-Yauri Batholith) that broadly corresponded in time with the Incaic Orogeny. This orogeny
folded the earlier Mesozoic sequences into moderate to tight folds with NW-SE to E-W –striking axial planes.
More or less synchronous with intrusion of the Batholith and the Incaic Orogeny, continental red beds and
fluviatile clastic sediments, plus volcanics, were deposited in NW-SE –striking fault controlled basins around
the eastern margins of the currently outcropping magmatic belt.
Post-Early Oligocene continental volcanism deposited several thousand metres of volcanics and pyroclastics
in several pulses throughout the Neogene. These magmatic pulses were associated regionally with important
high-level epithermal gold camps / mines in southern Peru such as Orcopampa, Arcata, Antapite, Ares,
Cailloma, La Rescatada, etc.
Three main structural systems are recognized in the zone, the oldest one has a NW-SE direction and is
recognized by its long, mostly straight strike length fault segments cutting through the Jurassic –Cretaceous
units. The second system strikes NE-SW and control most of the drainage systems in the area. The latest
recognized system is represented by E-W faults that affect mostly the Tertiary units and it clearly overlaps
the first two systems.(Huerta, 2000).
Figure 4-4: Regional geology and major copper-gold deposits.
44
4.3. Property Geology
4.3.1.
Lithologies and Stratigraphy
Lithologically the Utupara-Chapi Chapi property is dominated by:

E-W striking and shallow-dipping folded sequences of Jurassic to Middle Cretaceous clastic and
carbonate rocks. The oldest sedimentary sequences correspond to the late Jurassic - early
Cretaceous Yura Group, which is overlain by the early-mid Cretaceous Murco and Ferrobamba
Formations;

Stocks of Eocene-Oligocene intrusive stocks of the Yauli-Andahuaylas Batholith. Intrusive rocks
in the property area are dominantly dioritic in composition, although in many zones the diorite is cut
by abundant stocks and dykes of more felsic composition such as monzonite, aplite and k-felspar
phyric pegmatite. Intrusive contacts range between bedding-parallel and sub-horizontal (e.g. in the
eastren part of the Utupara claims) to strongly transgressive and sub-vertical (e.g. in the central part
of the Utupara and Chapi Chapi claims);

Continental clastic rocks of the Puno Group, of probable Oligocene age. These unformably overly
the earlier units;

Shallow-dipping volcanic rocks of Tacaza Group, of Miocene age. This unit also unconformably
overlies all earlier units, although in many places it is in fault contact with them.
Figure 4-5: Geology of the Utupara-Chapi Chapi area
45
4.3.1.1. Yura Group
Labra Formation – is siliciclastic sequence consisting of medium to fine grained, light gray, medium to thinstratified (<1meter) sedimentary rocks, with interbedded internally laminated fine sandstone, siltstone and
black shale horizons. Locally polymictic conglomerate beds with clasts of diorite and quartzite up to 60
centimeters in diameter occur, together with lenses of carbonaceous shales with fossil flora. The unit has a
thickness of about 850 meters and is of a Jurassic age (Chest, 1981).
Gramadal Formation – the basal sequence consists of quartz sandstone, carbonaceous shale (20-30
centimete beds with fossil flora) and laminated siltstones units. Towards the top, there are fine-grained
quartz sandstonesinterbedded with laminated mudstones and siltstones, with carbonaceous fossil also
present in lesser amounts. The unit has a thickness of about 110 meters and is of probable early Cretaceous
age.
Hualhuani Formation .- The siliciclastic platformal sequence consists of white medium- to coarse- grained,
sandstones with coarse stratification thick, interspersed with occasional thin shaly levels. There are up to 5
fining upward rythmic sequences within the stratigraphic package. The unit has a thickness of about 600
meters and its stratigraphic position is inferred to be of early Cretaceous age. Stratigraphically upward it
shows a transitional and concordant relation with the overlying Murco Formation.
4.3.1.2. Murco Formation
At the base this formation consists of quartz sandstone, intercalated with siltstone and sandstone and
reddish fine gray-green, medium to fine-stratified (<1 meter) mudstones. Correlatives have higher proportion
of medium-grained reddish arkosic sandstones and intercalated reddish claystones. It has a thickness of
about 400 m thickness and ranges in age between early Cretaceous (Neocomian to Aptian).
Figure 4-6: The Murco Formation overlying the Hualhuani Formation
.
4.3.1.3. Ferrobamba Formation
This is a platformal marine limestone sequence distributed over much of southern Peru. It is a calcareous
sequence (gray micritic limestone) with common chert nodules. The sequence is semi-stratified (<1 meter
46
thick) to thin layered at the base and middle levels and thinly stratified towards the top. It has a thickness of
about 600 meters and is of middle Cretaceous age. It is an important host for skarn and hornfels in the
contact aureole of the numeous igneous intrusions in the region.
Figure 4-7: The Ferrobamba Formation (grey, top right) overlying the Hualhuani Formation (red, left)
4.3.1.4. Yauli-Andahuaylas Batholith
At least two kilometric-scale intrusive stocks intrude the Mesozoic sedimentary sequence within the property
(example Figure 4-8 below). These intrusive bodies are internally complex and consist mainly of diorite, cut
by stocks and dykes of monzonite, aplite and pagmatite. Textures range between coarse-grained aphinitic
through to fine grained matrix with megacrysts of potassium feldspars. In general there is a strong
suggestion that the intrusive rocks range in structural level from batholithic to hyperbysal.
The age of the intrusive rocks is mid Eocene to mid Oligocene, according to their field age relationships and
their correlation with the Yauli-Andahuaylas Batholith.
Cº Utupara
NW
SE
f
Señal Añasino
f
Area Cachorro
f
Cº Tajra
D
U
Qd a
. Utu
para
D U
Figure 4-8: Looking NNE towards the contact between the Utupara intrusive in the middle with the quartzites
of the Yura Group on the left (at Cerro Utupara) and the limestones of the Ferrobamba Formation on the
right (at Cerro Tajra). A set of NNE-SSW striking dip-slip faults parallel quartzite-intrusive contact.
47
Hydrothermal and Intrusion Breccias: The intrusive stocks are cut by intrusive breccia bodies (Figure 4-9).
These breccias are commonly characterized by the presence of sulphide mineralization (pyrite-pyrrhotitechalcopyrite). The breccias around Cachorro within the Utupara Sector are manifest as a polymictic, matrix
supported type with rounded to sub-rounded clasts of diorite, biotite monzonite, tonalite and trachyandesite,
and with an argillically or propyllitically matrix. In many cases they possess a matrix of leucocratic intrusive
rock with frequent large centimetre-sized k-feldspar phenocrysts and are effectively intrusive breccias. In
other cases, multiple brecciation events (evidenced by breccia within breccia), flow layering and possible
milling textures are present, indicative of high level volatile release (Figure 4-10). Coarse biotite in the matrix
is extremely common, with individual crystals sometimes exceeding 10 millimetres across.
Figure 4-9: Cachorro area (Utupara Sector) intrusion breccia, with matrix of felsic pegmatitic phase
supporting dioritic blocks
48
Figure 4-10: Intrusion breccia, showing flow alignment of Kfeldspar megacrysts in the pegmatitic matrix.
Breccia clasts are themselves previously altered breccias in this case.
4.3.1.5. Puno Group
Is a continental clastic sequence (“red-beds”) characterized by a basal sequence of pseudostratified coarse
conglomerate with subrounded clasts consisting of limestone, quartzite and igneous rocks up to 30
centimeters long. This level also includes medium-grained arkosic sandstones and levels siltstones and
reddish claystones forming units up to 3 meters thick. In the middle part it consists mostly of semi-stratified
sandstone, arkosic sandstone and siltstones. At the top it is dominated by fine arkosic sandstone, siltstones
and claystones. The unit has an approximate thickness of between 100 and 300 meters. The unit
unconformably overlies the Ferrobamba Formation. Its age ranges bewteen late Cretaceous and early
Tertiary (Oligocene).
Figure 4-11: The Puno Group (left) unconformably overlying the Ferrobamba Formation (right)
49
4.3.1.6. Tacaza Group
The Tacaza Group is a continental volcanic sequence; at the base it consists of porphyritic andesitic lavas,
followed by flows of aphanitic andesites, in turn overlain by pyroclastic deposits such as fine tufts, glassy
tuffs and ignimbrite. Th unit appears to become more acidic to the east, near the Chama property. The
Tacaza Group hosts a number of important epithermal gold-silver deposits in southern Peru, and is of
Miocene age.
4.3.2.
Hydrothermal Alteration
Alteration of the Utupara-Chapi Chapi property is extensive. It includes examples of porphyry, skarn and
epithermal-style alteration.
4.3.2.1. Porphyry-style Alteration
Alteration within the intrusive rocks is widespread and pervasive throughout the property and is dominated by
the potassic facies (i.e. combinations of secondary potassium feldspar, biotite, magnetite and quartz. Minor
facies present as irregular zones include the phyllic (sericite, quartz and pyrite) as well as the propyllitic
facies (epidote, chlorite and calcite). In many outcrops, and in the drilling executed by Alturas, the phyllic and
propyllitic alteration clearly overprint the earlier potassic phase (Figure 4-13).
Figure 4-12 (left): Potassic alteration and stockworking. Veins are mainly quartz, k-feldspar and goethite
(after sulphides and magnetite). The matrix has common secondary biotite alteration.
Figure 4-13 (right): Zones of phyllic alteration cutting and overprinting potassic alteration and stockworking
like that shown in the previous photo. Mineralogy of the transgressive zone is quartz, sericite and goethite
after sulphides.
In more detail, the porphyry-style alteration phases that can be recognized within the property are as follows:

Early Potassic Phase (biotite-magnetite-pyrite-chalcopyrite). This phase occurs mainly within the
dioritic rocks, where it is pervasive, and is associated with low grade copper-gold mineralization;
50

Principal Potassic Phase (K-feldspar-albite-biotite-actinolite) occurs mainly within the monzonitic
rocks and is asociated with zones of fracturing and brecciation. It tends to be associated with zones
of higher copper-gold grade, especially where there is more actinolite;

Propyllitic Phase (chlorite-calcite-epidote-pyrite) is widespread and occurs marginal to the potassic
phases and is commonly observed to either have been contemporaneous with, or postdates, the
latter. In zones where it is superimposed on the potassic alteration, there commonly are higher
copper and gold grades. Magnetite and hematite precipitation also seem to be important in the
precipitation of copper;

Phyllic Phase (quartz-sericite-pyrite) appears to follow faults and fractures along a discrete structural
corridor of breccias in the Utupara Sector. It tends to be associated with elevated gold values,
especially where pyrite and hematite are present;

Late Potassic Phase (k-felspars - albite) is not apparently associated with any mineralization.
4.3.2.2. Skarn-style Alteration
Strings of exoskarn alteration bodies are distributed along the intrusive contacts between the Utupara and
Chapi Chapi intrusive stocks and the limestones of the Ferrobamba Formation. These bodies are generally
tens to a hundred meters or so in dimension and are dominated by a mineralogy of magnetite, with lesser
garnet, pyroxene and sulfides. In the Chapi Chapi area they are associated with strongy elevated copper and
gold grades, presumably associated with chalcopyrite.
Figure 4-14: Zones of massive magnetite associated with strong copper and gold mineralization in the Chapi
Chapi Sector.
51
Fault-controlled and disseminated endoskarn-style alteration is present along the contact of the Utupara and
Chapi Chapi stocks, but within the intrusive rocks themselves (Figures 4-15, 4-16 and 4-17). Typical
mineralogy there is dominated by garnet, pyroxene, magnetite and sulphides (pyrite, pyrrhotite and
chalcopyrite). Actinolite and chlorite constitute retrograde phases.
Figure 4-15 Endoskarn alteration within intrusive rock with abundant goethite after magnetite and sulphides
Figure 4-16 Endoskarn-altered ex-intrusive rock with wollastonite, garnet and clinopyroxene. The dark
patches are actinolite and chlorite (Chapi Chapi sector 742404E 8411088N)
52
Figure 4-17 Photomicrograph of the endoskarn sample shown in the previous figure showing wollastonite
(wol), garnet remains (GRNs) and clinppyroxene (CPXs).
4.3.2.3. Epithermal-style Alteration
Epithermal-style alteration is present only within the Chapi Chapi Sector, in a northwesterly-striking belt
cutting volcanic rocks in the central parts of the claims. The Cullimayoc Chama and epithermal systems
appear to be controlled by a major fault striking N 330 ° and over 6 km long. It is likely that this fault
controlled the volcanic activity, hydrothermal and hydrothermal breccia future events in. At Cullimayoc and
Chama hydrothermal multiphase brecciation is evidenced by siliceous-altered volcanic t¡uffs with cavities
filled with agate, jasper, opal and iron oxides. The main alteration is a massive silica cream – white silica, cut
by massive gray silica structures (oriented N 330 ° and dipping 60 ° N). These structures have granular silica
halos and grade outwards to advanced argillic and argillic alteration.
At the Chama prospect, the epithermal alteration is assocaited with significant gold mineralization.
4.3.3.
Structure
NW-SE, N-S and NE-SW –striking steep faults cut both the intrusive and country rocks although these tend
to exhibit fairly small relative lateral displacements of the rock units:

The NW-SE to WNW-ESE -striking structures are probably more regional, deeper seated structures
underlying the higher order, shorter strike length structures. As such they have probably been
reactivated over time.

A prominent N-S to NNW-SSE striking, more locally distributed, fault set is mappable in the Soraya
Formation quartzites and these parallel the contact of the Utupara intrusive (Figure 5-12). These
faults possibly acted as feeder channels to lower temperature gold mineralization in the quartzites.
53
This fault set is also mappable as offsets in geophysical anomalies within the Utupara intrusive, and
appear to have a relatively late relative timing. They appear acted as largely dip-slip normal? faults.

The NE-SW -striking fault set is somewhat more subtle in expression but nonetheless is a strong
control on the distribution of copper and gold anomalism at the kilometres scale. These faults /
fractures appear to be largely tensile in nature because of their lack of appreciable displacement.
Shallow-dipping pervasive fracturing and hydrothermal vein sets are also common throughout the intrusive
stocks. Hydrothermal “blow out” brecciation is strong and widespread in the Utupara Sector, indicating high
activity of volatiles. The brecccias form irregular zones of various types of milled, poorly sorted and
polymictic breccias cutting the intrusives and country rocks
54
5. DEPOSIT TYPES
There are indications of numerous different styles of mineralization on the Utupara-Chapi Chapi Property:

Porphyry copper-gold

Skarn copper-gold

Structurally-controlled gold hosted by quartzite

Carbonate-hosted low sulfidation gold

Structurally-controlled gold hosted by intrusive rocks

Volcanic-hosted epithermal gold
It should be noted that mineralization on other properties discussed in this report is not necessarily
indicative of the mineralization on the Utupara-Chapi Chapi Property.
5.1. Porphyry Copper-Gold
Utupara-Chapi Chapi is located within the Yauli-Anadahuaylas Eocene-Oligocene copper-gold-molybdenum
belt that hosts a number of well known porphyry copper type deposits and projects. There are strong
indications of this type of mineralization in the vicinity, with large deposits like Antapaccay, Quechua,
Cotabambas and Las Chancas.
The age of the intrusives at Utupara-Chapi Chapi is Eocene to Oligocene, coincident with those of the main
mineralized belt. The intrusion at Utupara is a diorite that is cut by numerous dykes and veins of more
intermediate to felsic composition, ranging texturally from aplites to pegmatites. The system is sulfidic but
also displays significant iron oxides. Combined with the presence of typical porphyry-style features, such as
potassic, phyllic and propyllitic alteration plus magnetite-, sulfide- and quartz-bearing stockworks, there is
strong evidence for a high level porphyry system/s of kilometres-scale extent.
Alturas proposes that the presently known characteristics of the porphyry copper-gold system at Chapi Chapi
-Utupara appear to be more consistent with an “alkalic” copper-gold –style porphyry system, which are
emerging worldwide as an important class of high grade deposit in Australia, Canada, Mongolia and
elsewhere. Their characteristics are summarized by authors such as Deyell Shane Ebert and Tosdal (2004);
Forster, Seccombe and Phillips (2004); Lang and McLaren (2004); and Panteleyev (1995) and include:

Associated with high potassium “shoshonitic” intrusive suites;

Commonly there is multiple emplacement of successive intrusive phases and a wide variety of
breccias;

Generally associated with pipe-like intrusions and dykes of small areal extent;

Do not contain economically recoverable Mo (< 100 ppm) but do contain elevated gold (> 0.3 g/t)
and silver (>2 g/t).

High copper and gold grades hosted by intrusions or dykes, sometimes as very high grade
zones in the adjacent country rocks;

Associated with sheeted zones of hydrothermal biotite breccias;

Abundant hydrothermal magnetite, commonly associated with higher gold grades;

Copper and gold may or may not be associated with zones of quartz veining (depending on
degree of silica saturation), in contrast to most “normal” porphyry systems where quartz veining
is the norm;

No known advanced argillic alteration and phyllic alteration is restricted to deep-penetrating fault
zones;

Supergene enrichment is restricted due to the general sulphide-poor nature of the alteration;

The lack of an extensive peripheral hypogene alteration “footprint”
55
The Cadia district of Eastern Australia is an excellent example of a very large copper-gold system of this
style, hosting in excess of 18 million ounces of gold with significant copper. Apart from the large low grade
deposits at Cadia, newer discoveries in the district, such as Cadia Far East and Wridgeway, show the
potential for structurally controlled, high grade gold-copper orebodies hosted outside the main intrusive
stocks. These orebodies are mainly hosted by volcanics and sediments, with alteration effects zoned about a
central potassic core coincident with the higher metal grade centres. In all cases, alteration and
mineralization are zoned about small monzonite dykes and stocks. Note that the orebodies at Cadia were
initially difficult to locate, but their high grade nonetheless makes them attractive economic targets.
Exploration for these orebodies requires a clear understanding of the mineralization and alteration model,
and their relationship to geophysical signatures in IP, resistivity and magnetics. For example, the generally
low sulphide nature of this style implies that Induced Polarization may always not be the best targeting tool in
the search for blind deposits, and instead may merely map the disseminated pyrite shell around the ore
grade material. In some cases, a combination of resistivity highs and magnetic highs may be more indicative
of the mineralized quartz-magnetite stockwork zones in the more silica-saturated end members (Lang and
McClaren, 2003). Supporting this conclusion, the rich (but hidden) Wridgeway deposit in the Cadia camp (44
Mt at 2.6 g/t Au and 0.82% Cu) was targeted initially on the basis of a magnetic anomaly (Holliday,
McMillan and Tedder, 2001) . The discovery history there suggests that persistence was also one of the key
factors in this very complex system which, like Utupara-Chapi Chapi, displayed very large areas of strongly
anomaous copper and gold.
H
Figure 5-1: General section through the Cadia copper-gold district
56
Figure 5-2: Detailed schematic section of Cadia Far East orebody showing alteration zonation
Hydrothermal and intrusive breccia systems are commonly associated with copper-gold mineralized, high
level intrusive systems. For example, in the Cadia camp of Australia, steeply dipping dyke-like bodies of
biotite-bearing breccia are mapped and described by Forster, Secombe and Phillips (2004). These breccias
are intimately associated with the mineralized cores of the systems and are probably associated with an
early potassic phase of alteration. Locally termed “pegmatitic breccias” , they cut the margins of the intrusive
stocks and comprise fragments of intrusive cemented by a coarse-grained assemblage of biotite, Kfeldspar,
quartz and plagioclase with some pyrite, chalcopyrite and molybdenite. Biotite cements the matrix of the
breccias and is notably coarse-grained, up to 10 millimetres.
The breccias from the Utupara Sector (Cachorro Zone) described above in Section 4 may be similar to those
at Cadia, and further support a common affinity with this type of alkalic copper-gold system. Of particular
note is the very coarse grain size of the biotites in the breccias at Utupara-Chapi Chapi, indicating strong
alkaline activity and mobility in the fluid phase.
5.2. Skarn Copper-Gold
Skarn mineralization represents a high grade copper-gold target with the Utupara-Chapi Chapi Project, and
the Eocene-Oligocene Belt of southern Peru hosts examples of very large economic skarns such as Tintaya
and Las Bambas. The Tintaya district hosts three main deposits with a combined 318 million tonnes @
1.48% copper, 0.20 g/t gold. The grade and tonnage curves in Figure 5-3 show the grade and tonnage
curves for the largest and richest copper-gold skarns in the world. Note that in terms of world-class economic
skarn deposits, Tintaya rates as one of the largest.
These data help to underline the skarn potential of the belt in which Utupara-Chapi Chapi is located.
57
Figure 5-3 Grade and tonnage curves for the world’s most important copper-gold skarn deposits (from Jones
and Menzie, USGS Bulletin 1693).
Skarn-hosted sulfide copper-gold mineralization at Utupara-Chapi Chapi is hosted by both the calcareous
country rocks (exoskarn) and by the intrusive rocks (endoskarn). In the Utupara Sector, the latter is
dominant, whilst in the Chapi Chapi Sector the former is dominant.
5.3. Structurally-controlled Gold Hosted by Quartzite
Quartzite-hosted, bulk-mineable gold mineralization associated with high level Tertiary intrusive stocks is
becoming increasingly important in northern Peru (La Libertad Department) and represents viable economic
targets. Mines such as Santa Rosa and La Virgen demonstrate that oxidized stockwork systems can attain
sufficient density and gold tenor to justify bulk mining.
Interestingly, part of the resource defined at Barrick’s 7 million ounce Alto Chicama gold deposit is hosted by
faulted clastic sediments in contact with high level stocks, transitional to a high level high sulfidation
epithermal environment.
58
At Utupara-Chapi Chapi, indications of quartzite-hosted gold mineralization occur hosted by siliclastic
sediments of the Yura Group at:

The Huarajo gold zone in the Chapi Chapi Sector

The Utupara Mine area in the Utupara Sector
5.4. Carbonate-hosted low sulfidation epithermal gold
Carbonate-hosted gold systems are thought to be distal expressions of intrusive-related skarn systems,
possibly related to gold (+copper) deposition from late-stage fluids. Examples are know from Bingam Canyon
(Utah, USA) and the Yauricocha District of central Peru.
At Utupara-Chapi Chapi, indications of carbonate-hosted gold mineralization occur in jasperoids hosted by
limestones of the Ferrobamba Formation occur at:

The Cerro Coronto gold zone in the Chapi Chapi Sector
5.5. Structurally-controlled Gold Hosted by Intrusive Rocks
Vein-hosted gold mineralization within intrusive rocks is a common peripheral style found around porphyry
and other types of systems. Veins tend to be tens of centimetres to meters wide, and persistent over tens to
hundreds of meters. Although this mineralization style is very widespread in mineralized districts with
batholithic rocks, they are normally not associated with large economic concentrations of gold.
At Utupara-Chapi Chapi, mineralization of this style occurs within the Utupara Sector in the Titiminas, Cerro
Utupara and Chungo Pata Zones.
5.6. Volcanic-Hosted High Sulfidation Epithermal Gold
The Utupara-Chapi Chapi property encloses a small high-sulphidation epithermal gold-silver system at the
Chama prospect, which is hosted by volcanic rocks of the Tacaza Group. High sulfidation epithermal style
alteration with or without accompanying gold mineralization also occurs within the Cullimayoc-Chaica target
areas to the southeast of Chama.
High sulphidation gold ore systems develop from the reaction of host rocks with hot acidic magmatic fluids to
produce characteristically zoned alteration, with later sulphide and gold + copper + silver deposition. Ore
systems display primary and secondary permeability controls governed by lithology, structure and breccias.
Changes in wall rock alteration and ore mineralogy commonly depth of formation an/or ph-temperature
gradients. One of the exploration challenges is to distinguish the gold mineralized systems from a group of
generally non-economic acidic alteration styles, including lithocaps or barren shoulders, steam heated,
magmatic solfatara and acid sulphate alteration.
High sulphidation ore systems are characterised by zoned alteration formed as a result of the progressive
cooling and neutralization of the hot acidic fluids by reaction with the host rocks and ground waters (see
Figure 5-4). At the core of high sulphidation ore systems hot acidic fluids leach many components from the
host rocks leaving mainly only silica and some rutile. These intensely altered rocks are called residual silica
or vuggy silica, from the texture produced by the pseudomorphous removal of porphyritic feldspars and rock
fragments.
In many breccias finely ground rock material is replaced by massive fine grained silica, while porphyritic
intrusion fragments display the characteristic vuggy texture. Vuggy silica also provides important secondary
permeability for later mineralisation.
Sulphide mineralization is generally introduced along feeder structures or breccia pipes after alteration of the
central portion of the altered zones.. Sulphide assemblages are dominated by pyrite and enargite (including
its low temperature polymorph luzonite), with lesser covellite (typically at deeper levels) and locally
developed, and generally peripheral, tennantite-tetrahedrite.
59
Vertical metal zonation is apparent with higher abundances of gold or gold-silver along with mercury,
tellurium and antimony in the upper portions of the system, and higher copper contents at deeper levels.
Most high sulphidation systems are characterized by primary gold grades in the 1 to 3.5 g/t range, but some
display remarkably higher gold grades attributed to fluid evolution and improved mechanisms of mineral
deposition, mostly associated with the mixing of the gold -rich fluids with oxidizing acid sulphate waters.
Supergene alteration is an extremely important process in high sulphidation deposits because it generally
simplifies the metallurgical liberation of the gold and leads to easier exploitable oxidized material that
commonly does not require crushing before heap leaching. Acid groundwaters produced from the oxidation
of the abundant pyrite present in the systems commonly create deep supergene profiles above the
hypogene mineralization.
Figure 5-4; Schematic conceptual relationships between high sulphidation precious metal systems, low
sulphidation systems and porphyry systems.
60
6. MINERALIZATION
6.1. Introduction
The following section outlines the styles of mineralization and accompanying geochemistry at the various
mineralized zones originally recognized by Milpo, MIRL and later by Alturas. For convenience the
mineralized occurrences will be grouped according to the deposit styles described in the previous section 5.
Figure 6-1 is a map showing the general location of these mineralized zones, whilst Figure 6-2 is an
enlargement showing the details within the Utupara Sector of the Property.
Figure 6-1: Summary map showing mineralized zones recognized on the Utupara-Chapi Chapi Property
61
Figure 6-2: Enlargement of Utupara Sector showing mineralized zones identified.
6.2. Porphyry Copper-Gold
The porphyry-altered intrusive rocks at Utupara-Chapi Chapi are commonly well mineralised by pyrite, both
disseminated and in veinlets, and to a lesser extent by fine disseminations of chalcopyrite and molybdenite.
This mineralization is common within the Cachorro Zone of the Utupara Sector, but is also found in the
intrusive rocks bordering the Chapi Chapi and Huarajo mineralized zones in the Chapi Chapi Sector.
Locally up to 10% by volume of pyrite occurs, especially in near-surface fractures. In the drillholes executed
by Milpo and Alturas an average of around 4% pyrite was intersected corresponding to broad intervals of
strong copper-gold anomalism (hundreds of metres of up to thousands of ppm copper and hundreds of ppb
gold). Induced Polarization geophysics executed by Alturas at Utupara and Chapi Chapi indicated several
zones of strongly polarizable material, probably corresponding to extensive disseminated pyrite. These
zones form a broad linear and anastamosing zones possibly reflecting possible pyrite halo/es around one or
more clustered porphyry systems.
Weak to moderate potassic alteration dominates the alteration within the intrusive rocks in both the Utupara
and Chapi Chapi sectors and is intimately associated with strongly anomalous copper and gold grades on
surface. Quartz-magnetite stockworks characteristic of most porphyry systems are only occassionally
present at the currently exposed level. High copper and gold grades indicated by the surface sampling are
commonly associated with potassic feldspar-, magnetite- and biotite –veined and altered rocks, largely
without quartz veining. Massive phyllic and propylitic alteration are restricted to the area of the Cachorro
breccias and surrounds at Utupara. At Chapi Chapi, weak to moderate propyllitic alteration of the intrusive
rocks is widespread. Discrete structurally-controlled zones of phyllic alteration associated with gold-bearing
quartz veins cutting intrusive rocks occurs to the southwest of the Cachorro area.
62
Figures 6-3 and 6-4 show potassic and phyllic-style alteration associated with mineralization from the
Utupara sector. Figures 6-5, 6-6 and 6-7 show examples of mineralized intrusive rocks at various scales from
the Chapi Chapi sector. There is a clear link between monzonite dykes and stocks with the disseminated
copper-gold-molybdenum mineralisation, but mineralization is associated with the potassic, phyllic and
propyllitic alteration facies. Sulfide mineralisation forms fine veinlets, disseminations and patches.
Figure 6-3: Veins of K-feldspar-albite-biotite-chalcopyrite cutting potassically altered diorite in Utupara
Sector Drillhole UTU-04. These intervals are associated with strongly elevated copper and gold.
Figure 6-4: Phyllic alteration with sericite, quartz and pyrite associated with elevated values of gold in altered
monzo-diorite rock (Utupara Sector Drillhole UTU-02). Pyrite replaces hematite-magnetite.
63
Figure 6-5: Sericite-quartz alteration of porphyritic monzonite intrusive rock, cut by fine veins of quartz and
secondary copper minerals. Petrographic examination of the sample also indicates weak potassic alteration
in the form of secondary biotite (Chapi Chapi Sector 741013E 8410866N).
Figure 6-6: Photomicrograph of potassic-altered porphyritic monzonite intrusive rock shown in previous
figure, showing secondary biotite (bt II) and sericite (ser) of primary hornblende phenocryst (Chapi Chapi
Sector 741013E 8410866N).
64
Figure 6-7: Photomicrograph (reflected light) of altered porphyritic monzonite intrusive rock with fine veins of
pyrite (py) and chalcopyrite (cp). Some chalcopyrite grains have replaced ferromagnesian minerals on the
right hand side of the photo (Chapi Chapi Sector 740983E 8410864N).
Unlike many of the porphyry-style systems of southern coastal Peru and Chile, there appears to be a lack of
significant supergene leaching and enrichment of copper and other economic elements in the system. Fresh
sulfides commonly occur at surface and little evidence for a secondary leaching-enrichment profile was
revealed in the drilling by Milpo and Alturas. This lack of a leaching-enrichment profile either reflects a
general paucity of pyrite in the system (the breakdown of which would generate acid and consequent
leaching/redeposition of metal) or is a consequence of the deep, relatively recent, dissection of the system
eliminating any leaching/enrichment profile that may have been present.
6.2.1.
Hydrothermal breccias
Two areas of intrusive and hydrothermal breccias were first recognised in the Cachorro area of the Utupara
Sector by Milpo. These breccia bodies outcrop over hundreds of metres and comprise two distinct zones
(UTP-1 and UTP-II), although Alturas work suggests that their geometry is probably more likely a network of
interconnected chimneys and planar zones that are disrupted by faulting. UTP-1 appears to be localized
around the intersection of N-S and NW-SE –striking faults and fractures.
The mineralized breccias of andesite/diorite porphyry altered to sericite, chlorite, epidote and silica, with
sporadic sulphides. Higher copper and gold in surface trenching are associated with disseminations of
chalcopyrite, magnetite, hematite and pyrite with a quartz and calcite gangue. The UTP-II breccia zone
features a zone of high surface copper and gold grades distributed over an area of around 70 x 70 metres.
This zone corresponds to a dioritic intrusive overprinted by strong biotite and magnetite alteration, and cut by
a stockwork of quartz-Kfeldspar-goethite veins. Later phyllic alteration zones controlled by faults cuts the
potassic alteration and was probably copper and gold destructive.
65
Figure 6-8: Intrusive breccia from the Cachorro Corridor, Utupara Sector. Disseminated chalcopyrite-pyrite
occur within the potassically-altered matrix. Clasts are monzonite and diorite.
The Cachorro I Breccia Zone lies to the east, striking NE-SW for a length of +500 metres. The breccia
shows a flow banded texture in places with lenses where the rocks are more fractured and with less
alteration. The matrix of the breccia is commonly argillized and oxidized. In road cuts there is a
concentration of pyrite and chalcopyrite veinlets, as malachite and bornite associated with goethite, limonite
and specularite veins.
Eighty-nine trench samples from this area by Milpo return values between 100 and 3874 ppb gold, and
between 109 and 4754 ppm copper, with a simple arithmetic average of 152 ppb gold and 890 ppm copper.
Consistently anomalous copper and gold values show good spatial coherence over hundreds of metres in
trenching particularly in the northern part of the breccia body. Composited copper and gold values along
these trenches include the following:

220m @ 702.77ppm Cu, 50.32ppb Au;

110m @ 1,160.25ppm Cu, 55.17ppb Au;

150m @ 1,079.2ppm Cu, 115.47ppb Au;

370m @ 1,114.41ppm Cu, 129.38ppb Au.
The Cachorro II Breccia Zone is located to the west of the Cachorro I area. The host rocks are andesites
with slight argillic alteration. Potassic alteration is present in places as k-feldspar in veinlets. Propylitic
alteration occurs as patches within the breccia. Forty-four samples from the breccia collected by Milpo
returned values above the detection limit for gold and copper, with averages of 1,418 ppb for gold and 1,184
ppm for copper.
Strongly anomalous copper and gold values show good spatial coherence, particularly in the western and
northwestern part of the breccia body. Composited trench sampling intervals are as follows:
66

115m @ 103.17ppm Cu, 139.33ppb Au;

35m @ 100ppm Cu, 149ppb Au;

55m @ 3,221.64ppm Cu, 126.36ppb Au;

60m @ 1,652.17ppm Cu, 82.75ppb Au;

185m @ 713.92ppm Cu, 251.81ppb Au;

60m @ 107.75ppm Cu, 314.75ppb Au;

25m @ 258.4ppm Cu, 146.8ppb Au;

35m @ 1,371.86ppm Cu, 73.86ppb Au;

50m @ 1,501.8ppm Cu, 89.9ppb Au;

40m @ 582.25ppm Cu, 39.63ppb Au;

25m @ 172.8ppm Cu, 40.6ppb Au and

110m @ 680.27ppm Cu, 201.91ppb Au.
It is worthwhile noting that higher copper and gold values were recorded in trenches immediately to the
northwest of the mapped breccia zone, in more coherent monzonite and diorite porphyries, stockworked with
quartz and iron oxides. Continuous trench samples in this transition zone included:

35m @ 1,790.71ppm Cu, 48.57ppb Au;

25m @ 1,038.8ppm Cu, 47.8ppb Au;

20m @ 1,973.75ppm Cu, 58ppb Au;

55m @ 1,986.55ppm Cu, 43.91ppb Au;

55m @ 4,446.91ppm Cu, 343.27ppb Au.
Figure 6-9: Cachorro Breccias with copper results in trenches. Copper values in legend are in ppm. Grid
ticks on map are spaced 200 metres apart.
67
Figure 6-10: Cachorro Breccias with gold results in trenches. Gold values in legend are in ppb. Grid ticks on
map are spaced 200 metres apart.
6.3. Skarn Copper-Gold
6.3.1.
Exoskarn
6.3.1.1. Chapi Chapi Corridor
The Chapi Chapi Corridor features a series of skarn lenses several tens of meters wide cutting limestones
along the western contact of a large intrusive body, within the Chapi Chapi Sector (Figure 6-1). The skarn
lenses occur over a total area of +3.0 x 2.0 kilometers and are distributed along the main intrusive contact
and/or are contained within steep structures cutting the gently dipping limestones. Endoskarn alteration is
also widespread and strong within the adjacent intrusive rocks. At Chapi Chapi itself two sub-parallel, NESW striking corridors of magnetite skarn bodies, old copper-gold workings and sinkholes +3.00 x 0.25
kilometers in size can be traced through the limestones and intrusives, aided by the soil geochemistry
(Figure 6-11).
High grade copper oxides (up to 12.7% copper) and gold (up to 2.84 grams/tonne) have previously been
extracted from layered karstic deposits developed within the sinkholes in the limestone-hosted skarns.
Copper oxides, carbonates and silicates (chalcocite, malachite, chrysocolla) hosted in limestone karstic
deposits and limestone breccias are very common (Figures 6-12). These zones have been exploited by
small miners because of their rich copper and gold values.
The primary exoskarn exposed on surface is a massive magnetite rock with scarce disseminations of
chalcopyrite along magnetite grain boundaries (Figure 6-13). In drillholes executed by Alturas, the richest
copper-gold intervals of magnetite-rich exoskarns are accompanied by strong pyrite (up to 20%) and
chalcopyrite (up to 3%) disseminations, patches and veins.
68
Figure 6-11: The Chapi Chapi Corridor, consisting of copper-gold exo- (and endo-) skarn bodies.
Figure 6-12: Layered karstic deposits derived from the leaching and weathering of limestones around
probable sulfidic skarn bodies. Strong secondary enrichment of copper is apparent.
69
Figure 6-13: Massive magnetite exoskarn, partially hematite-altered and with quartz-magnetite crystals in
cavities. The sample has minor disseminations of chalcopyrite within interstitial sites along magnetite grain
boundaries (Chapi Chapi Sector 740709E 8410706N).
6.3.1.1. Huaychullo
Huaychullo is a composite endoskarn-exoskarn style body located on the contact between limestone and
diorite in the northwestern part of the Utupara Sector. The mineralized zone extends for some 500 metres,
disappearing to the north under cover. The width of the zone is variable between 50 and 100 metres. The
northern part of the zone shows magnetite, goethite, limonite, hematite and occasional chalcopyrite, calcite
and epidote and the limestones are strongly recrystallised with magnetite, calc-silicate minerals and
occasional goethite and hematite. To the south the body shows magnetite (partially altered to limonites) and
veinlets of garnet, andradite, quartz and calcite.
In general the zone is characterized by strong copper and gold anomalism, with arithmetic averages of 1924
ppm copper and 224 ppb gold. No work other than rock chip sampling has ever been undertaken at this
prospect.
70
6.3.2.
Endoskarn
6.3.2.1. Cerro Añasino Corridor
There are various bodies of endoskarn along the eastern contact of the Utupara intrusive with the limestonerich Ferrobamba Formation (Figure 6-2). The contact follows a NNE-striking fault along which there is a 30
metres wide zone of endoskarn alteration. The fault extends for more than 2,500 meters of strike length.
This corridor has been named the “Cerro Añasino Corridor” by Alturas. The two small endoskarn bodies at
Cerro Tajra (termed Cerro Añasino 2 and 3) possibly represent the simple NNE extensions of the larger
Cerro Añasino 1 skarn (formerly “Corcapiña”) in the south.
At Cerro Añasino 1 Milpo outlined a zone of oxidation of about 800 by 500 metres with strongly anomalous
surface copper assays (up to thousands of ppm copper) from a series of trenches. The fault zone is
characterized by intense oxidation of sulphides (chalcopyrite, pyrite, pyrrhotite and chalcocite). The
associated silicate mineralogy consists of a probable retrograde actinolite-rich phase overprinting a grossular
garnet, wollastonite, scapolite, chlorite, epidote and calcite assemblage. The dioritic host rock to the
endoskarn possesses potassic alteration around the borders of the skarn whilst within the skarn there are
remnants of moderately silicified, propylitically- and sericite-altered diorite.
Close to the contact with the limestones, there is a strongly plastically - deformed zone of calc-mylonites
displaying isoclinal folds in primary layering, plus garnets and epidote. Within 8 to 10 metres of the dioritelimestone contact there is a rapid decrease in the intensity of skarn alteration (i.e. at currently exposed levels
there is not a broad zone of exoskarn rimming the intrusive). However, the limestones nonetheless show a
halo of strong decarbonation associated with some argillization some distance from the intrusive contact.
The potential for exoskarns within the limestones appears to be more limited and restricted to subsurface
replacements emanating out from this probable feeder fault that cuts through the intrusive
Milpo collected 73 surface rockchips from within the zone and these averaged 2181 ppm copper and 110
ppb gold over the entire zone, although the westernrnmost part of the zone appears to have the higher
copper and gold values. Subsequent trench sampling by Milpo revealed similar highly anomalous values, in
the order of thousands of ppm copper and several hundreds of ppb gold over tens of metres wide intervals.
Figure 6-14: Endoskarn with massive pyrrhotite and sbundant blebs of chalcopyrite from the Cerro Añasino
2 Zone
71
Cu (ppm)
Au (ppb)
Figure 6-15: Cerro Añasino 1 (Cocorpiña) skarn zone rock chip and trench geochemical sampling by Milpo
with copper and gold results. Circles are trench samples, squares are rock chip samples. Grid ticks are 200
metres apart.
72
6.3.2.2. Acco
Acco comprises two small gossanous bodies located south of the Colcabamba River at approximately the
same altitude as Titiminas in the Utupara sector. Both bodies show argillic and moderate silicic alteration of
a diorite. It is unclear whether the Acopata mineralization represents southern extensions of the Utupara
hydrothermal system or whether this is a discrete hydrothermal centre. No followup work has ever been
executed there.
Surface rock chip samples from the Acopata I zone taken by Milpo report average copper values of 1,600
ppm but all other elements are low.
6.3.2.3. Chapi Chapi Corridor
Extensive areas of endoskarn-altered intrusive rocks exist within the Chapi Chapi sector, and copper, gold
and molybdenum values are significantly elevated within the zones.
Alturas drillhole CHA-11-08 intersected long intervals of endoskarn altered zones hosted by monzonitic
porphyry intrusives at Chapi Chapi. Mineralization is associated with phyllic and propylitic alteration,
including quartz-sericite, calcite, chlorite, magnetite, pyrite and chalcopyrite. The molybdenite content is
unusually high; the hole reporting an intercept of 36.80 meters averaging 0.21% molybdenum.
6.4. Structurally-controlled Gold Hosted by Quartzite
6.4.1.
Cerro Utupara
Within the quartzites of the Yura Group at Cerro Utupara, the presence of strong gold mineralization in
fractured quartzites has been established by historic mining activity. High-grade gold mineralisation
averaging 5-10 g/t gold was worked from the oxide zone of bedding-parallel veins known as “mantos” –
these consist of metre-thick zones of quartz-veining, silicification and disseminated sulphides. Oxidation
extends to at least 100 metres below surface within this zone of mineralization.
Although most of the gold has previously been won from discrete bedding-parallel zones, there is
nonetheless abundant sulphidic, sericitic and siliceous alteration within the quartzites away from the mined
zones, opening the possibility for low grade, bulk mineable zones
In the Utupara Mine both gold-bearing veins and “mantos” occur. The “Esther” vein is the best exposed with
a surface outcrop extending for over 50 meters; it strikes WNW-ESE and dips 37 to 42 degrees to the east.
The vein averages 0.8 to 1.5 meters wide and is composed of white, brecciated massive quartz with limonite,
goethite and barite with a trace of chalcopyrite and arsenopyrite. The vein is hosted by a silicified and
argillized diorite cutting the quartzites. Milpo took 42 rock chip samples from various points along this vein
and assays averaged 4,854 ppb gold (UTU-0003).
The principal manto structure at Utupara is recognised for over 350 metres strike length within the silicified
quartzites. It is concordant with the stratification, strikes ENE-WSW and dips 40 degrees to the north. The
vein consists of grey cavernous quartz, goethite and kaolin. This is the main development in the Utupara
mine and accounts for most of the gold production. The manto has been recognised (and exploited) down to
120 metres below surface and 200 metres along strike. On the bottom level, about 85 meters below surface,
sulphides start to appear. Fifty samples, a mix of channel and point samples, were obtained from the
underground levels by Milpo and returned an average of 3,631 ppb gold and 1847 ppm copper.
73
Figure 6-16: Utupara gold mine, showing a bedding-parallel oxidized “manto” structure hosted by quartzite.
Note the strong fracturing and goethite staining of the quartzite either side of the manto.
6.4.2.
Huarajo
The Huarajo Zone, within the Chapi Chapi Sector, is a +1.1 x 1.1 kilometer –sized gold-in-soils geochemical
anomaly that lies entirely over fractured, brecciated and limonitized sandstones (Figures 6-18 and 6-19)
which are cut by monzonite dykes and breccia zones. The anomaly is defined by the +50 ppb (0.05
grams/tonne) gold contour and values locally attain up to 2.63 grams/tonne gold. The gold anomaly is also
broadly coincident with strong anomalies in other elements such as arsenic and antimony. Copper values are
in general strongly depleted, however isolated outcrops of copper carbonate minerals have been located
within the fractured sandstones. Representative bedrock geochemical sampling (21 samples) over the area
of the soil anomaly has returned gold values that average 0.25 grams/tonne, with a peak value of 1.15
grams/tonne. However, Alturas later repeated the bedrock sampling and failed to duplicate many of the
strong gold values in the bedrock. Alturas’s drilling campaign in the target area has confirmed a local, hard
rock source of the large gold-in-soils anomaly.
At some sites, secondary copper minerals such as malachite and chrysocolla are present on surface at
Huarajo (see Figures 6-18 and 6-20 below), however for the most part the oxide zone is more commonly
manifest as goethite and jarosite in fractures and in irregular patches (e.g. Figure 6-19). Petrographic work
on surface samples has detected the presence of goethite, barite, sericte, rutile and hydrothermal quartz
(Figure 6-21).
In hypogene samples within drillholes the gold-silver mineralized breccias are characterized by abundant
pyrite disseminations and veinlets (up to 6%), with rare and sporadic chalcopyrite, sphalerite and galena.
74
Figure 6-17: Huarajo gold target in the Chapi Chapi Sector, hosted in fractured and limonitized quartzite
rocks and hornfels of the Yura Group.
Figure 6-18: Copper oxides in fractured clastic sedimentary rocks at the Huarajo Target in the Chapi Chapi
Sector.
75
Figure 6-19: Huarajo Zone, showing the usual limonite-stained and silica-veined meta-arenites spatially
associated with the large gold-in-soils anomaly.
Figure 6-20: Huarajo Zone, showing a less common copper- and limonite-stained clastic metasedimentary
rock (Chapi Chapi Sector 741656E 8409752N).
76
Figure 6-21: Photomicrograph of the rock shown in the previous figure, showing strong sericite alteration of
primary k-feldspar grains (Chapi Chapi Sector 741656E 8409752N)
6.5. Carbonate-Hosted Low Sulphidation Epithermal Gold
6.5.1.
Cerro Coronto
Immediately west of the Chapi Chapi Target area in the Chapi Chapi sector is a zone of carbonate-hosted
mineralization at Cerro Coronto. Mineralization is hosted by a swarm-like system of structures strike WNWESE approximately 0.40-3.00 meters in width that are traceable over 700 meters of strike length. These
structures are filled with jasperoidal silica and show common brecciation, cavities filled with colloform quartz,
calcite-barite in fractures and in open spaces, veinlets of milky quartz and veinlets of calcite-manganese.
The alteration in this area is characterized by bleaching, decarbonisation and recrystallization of the
limestones, controlled by structures and by primary layering. Rock samples taken over this area attain up to
4.50 g/t gold, 5.40 ozs/t silver, 16.4% Pb, 2.4% Zn with strongly anomalous arsenic, antimony, barium,
cadmium, mercury and manganese.
The jasperoid-hosted minerlization at Cerro Coronto shares some affinities with the low sulfidaion,
carbonate-hosted systems that sometimes develop distal to skarn systems. Although of geoleogical interest,
it is not clear that these occurrences constitute geological targets of sufficient magnitude for followup
exploration.
77
6.6. Structurally-controlled Gold Hosted by Intrusive Rocks
6.6.1.
Cerro Utupara, Chungo Pata and Chunta Cerca
A NW trending corridor of auriferous veins of +2 kilometer strike length cuts through the intrusive rocks
between the Cerro Utupara and Titiminas areas. Within this belt macroscopic veins, striking E-W to NW-SE,
were previously worked for gold, silver and base metals in the Utupara Sector. These are associated with
strong sericite-pyrite alteration, and commonly are less than a meter or so wide, but may persist over tens to
hundreds of meters.
The veins do not appear to be of sufficient density to justify a bulk-mining proposition. However, they
commonly feature multi-grams/tonne assays within the central parts of the veins, with limited dissemination
of gold mineralization into the surrounding wallrocks. Table 6-1 shows the results of Alturas´s sampling
across these veins in a small area of 180 x 180 meters within the vein corridor, in the area of the Utupara
Creek, with best values of 2 meters @ 25.3 grams/tonne gold reported.
Table 6-1: Rock geochemical sampling by Alturas across the Utupara Creek veins
78
6.6.2.
Titiminas
At Titiminas within the Utupara Sector there are abundant macroscopic veins generally less than a meter
thick, with quartz, barite and limonites after sulfides. They were apparently worked for gold, silver and base
metals. Alturas sampling established grades of up to 27.7 grams/tonne gold and 67 grams/tonne silver over
1.3 meters across one of the veins (Table 6-2).
This is also a small magnetite body in diorite of about 20 metres in size with a NW-SE elongation. Samples
from the goethite –rich section of the outcrop returned gold values over 500 ppb, with one value above the
upper assay limit of 10,000 ppb. Copper is consistently above 500 ppm. Unlike most of the other prospects
silver is also significant, with values above 50 ppm and one sample above the assay limit of 200 ppm. Lead,
zinc, molybdenum, arsenic, antimony and mercury are also strongly elevated.
Titiminas would appear to have a more distal polymetallic vein signature than other prospects and possibly
maps the southern limit of the larger porphyry hydrothermal system to the north at Utupara.
Table 6-2: Rock geochemical sampling by Alturas across the Titiminas veins
6.7. Volcanic-Hosted High Sulphidation Epithermal Gold
6.7.1.
Cullimayoc and Chaica
Siliceous alteration is exposed within this corridor, but gold values reported in rock chip sampling to date
have been very weak. Rocks from the zone are anomalous in pathfinder elements such as lead and
antimony. It is probable that the erosion level is too high (as evidence by the occurrence of sinter textures
within this zone) and that potential gold-rich feeder zones are still hidden at depth awaiting discovery. The
overall impression is that, although the epithermal silica alteration is widespread, the tonnage potential of
these epithermal zones may be limited.
79
Figure 6-22: Cullimayoc Zone, showing intensely silicified volcanic rock with fine disseminated sulfides
(grey)
6.7.2.
Chama
Whilst not strictly within the Utupara-Chapi Chapi Joint Venture area, the Chama high sulfidation gold system
is of interest because of its close proximity. The system is a small but classic high sulfidation system with a
siliceous core (vughy and granular silica) approximately 600 meters in diameter grading outwards to quartzalunite and argillic alteration facies. Average gold values of 0.5-1.0 grams/tonne gold were apparently
intersected over intervals of tens of meters wide in previous drilling campaigns by MIRL and others.
80
7. EXPLORATION
7.1. Post-2005 Exploration – Utupara Sector
7.1.1.
Introduction
Within the Utupara sector, exploration by Alturas Minerals between 2006 and 2008 consisted of the
following:







Geological mapping at the 1:10,000 (10 x 8 kilometers) and 1:2,000 (3.7 x 2.4 kilometers) scales;
Ground magnetic surveying, along lines 200 meters apart (total area 4.8 x 3.5 kilometers);
Soil geochemical sampling along two lines 270 meters apart with individual samples spaced 25
meters apart (total 58 samples);
Referential rock geochemical sampling collected on grids and as grab samples. Most samples
consist of material composited over an area of 3 x 3 meters (total 949 samples);
Trench geochemical sampling along access roads and cuttings, consisting of continuous samples 24 meters in length (total 458 samples);
Induced polarization / resistivity surveying, pole-dipole 3D arrays along lines 200 meters apart (total
area 4.0 x 3.7 kilometers);
Diamond drilling from 20 platforms (21 drillholes for 4,933 meters).
7.1.2.
Surveying
The area was previously surveyed and the locations of trenches, access roads, drillhole platforms etc. have
been accurately located.
7.1.3.
Geographic/Grid Control
The digital database is in UTM co-ordinates with the Provisional South America Datum 56 (PSAD56) datum.
Drillhole collar platforms previously reported by Milpo was field checked by Alturas using a hand-held GPS
and was found in fact to be accurately located with respect to the PSAD56 datum. Therefore, we assume
that all co-ordinate points reported previously by Milpo are located with respect to the PSAD56 datum.
Geochemical sample points, plus peoophysical lines and stations in the case of the magnetic, IP/Resistivity
and radiometric surveys, were surveyed using hand held GPS.
For geological mapping at 1:10,000 scale, the topographic base used was the national map 1:25,000 from
the Ministry of Agriculture, with the UTM Datum PSAD56 - zone 18:
For more detailed topographic control and mapping at the 1:2,000 scale, local company Geomechanics
prepared topography obtained by airphotogrametric restitution of aerial photos from the 60s, with a contour
interval of every 5 meters. Later, Alturas contracted Horizons South America to prepared updated highly
accurate topographic maps / orthophotos constructed from airphotos flown in November 2006, with a contour
interval of 2 meters. Horizons later established horizontal and vertical datums, orthometric height, and
establishment baselines based on four points within the project.
7.1.4.
Geological Mapping – Utupara Sector
Geological Mapping at the 1:10,000 scale was completed by Alturas in 2007 over a total area of 10.0 x 8.0
kilometers. In addition, the company completed more detailed geological mapping at the 1:2,000 scale over
an area of 3.7 x 2.4 kilometres. Alturas contracted routine exploration work and project management to local
services company Exploandes S.R.L.
Figures 7-1 and 7-2 show the coverage of the lithological and alteration mapping completed.
81
Figure 7-1: Simplified 1:10,000 geological mapping completed by Alturas. Red-intrusive rocks, yellow-clastic
sedimentary rocks, blue-carbonate rocks, grey-post-mineral cover.
Figure 7-2: Coverage of the 1:2,000 geological mapping completed by Alturas (red rectangle). The details
are difficult to depict at this scale, but it shows internal differentiation of the intrusive rocks and alteration
styles.
82
7.1.5.
Soil geochemistry sampling – Utupara Sector
In the Titiminas area, Alturas carried out orientation soil geochemical sampling along two lines 270 meters
apart with individual samples spaced 25 meters apart (total 58 samples). Figure 7-3 shows the coverage of
that sampling. Samples of average 2 kilograms each were collected from the “B” horizon and different size
fractions were sieved and analysed for gold using the fire assay method (sieved fractions included -80, -120,
-150 and -200 mesh). The bulk leach extractable gold (BLEG) method was also used to analyse for gold.
The soil geochemistry sampling was part of a small orientation program to identify the best analytical
methodology to track the extensive gold-silver vein systems under the thin colluvial soil cover. However, no
additional systematic soil geochemistry prospecting was completed in the Utupara Sector.
The orientation work revealed that:

The best size fractions for defining soil gold anomalies over sub-cropping veins here are the finer
size fractions, from -80 to -200.

Lead, zinc, manganese, barium serve as useful “pathfinders” in defining anomalous zones that could
map subcropping vein systems.
Figure 7-3: Coverage of the soil geochemical orientation sampling completed by Alturas in the Titiminas
area (triangles).
83
7.1.6.
Rock chip geochemical sampling – Utupara Sector
Referential rock geochemical samples were collected mainly as composite grab samples or channels, and in
some cases, as grids. A total of 949 samples were collected and most samples collected consist of material
composited over an average area of 3 x 3 meters.
All samples collected were routinely assayed for gold by conventional fire-assay methods at Inspectorate´s
Lima facility, and for 34 additional elements (including silver, copper, lead, zinc) using aqua regia acid
digestion followed by Inductively Coupled Plasma-Atomic Emission Spectroscopy ("ICP-AES") analysis.
Alturas´s sampling program essentially confirmed the existence of geochemical anomalies previously defined
by Milpo.
Figure 7-4: Coverage of the rock chip geochemical sampling completed by Alturas (squares).
84
7.1.7.
Geophysics – Utupara Sector
7.1.7.1. Ground magnetics survey
FUGRO Ground geophysics completed a ground magnetics survey over the Property for Alturas in 2007.
Ground magnetic surveying was conducted along lines 200 meters apart over a total area of approximately
4.7 x 3.6 kilometers. Some 76.2 line kilometers of magnetic data acquisition were completed.
Figure 7-5 shows a gridded image of the magnetic data.
The survey revealed various magnetic high anomalies. These anomalies form broadly E-W and WNW-ESE
striking corridors. Magnetic zones generally coincide with the outcrop of the magnetite -enriched diorite and
monzonites, plus endoskarn bodies. There appears to be a possible set of breaks oriented NE-SW in the
data, revealed by termination of magnetic highs and these also correspond with mapped fault orientations.
Areas of very little magnetic relief possibly reflecting a combination of magnetite destruction caused by
hydrothermal alteration.
Figure 7-5: Coverage of the ground magnetics survey completed by Alturas (reduced to pole image).
7.1.7.2. Induced polarization / resistivity survey
FUGRO Ground Geophysics completed an Induced polarization / resistivity survey for Alturas, using poledipole 3D arrays along E-W lines 100 meters apart over a total area of 4.0 x 3.7 kilometers in 2007. The
survey covered a total of 65.3 line kilometres, with electrodes spaced 50 meters apart. Figure 7-6 shows the
coverage of the survey.
The raw data was processed by Dr. Bob White using inversion methods with minimum squares smoothing
(deGroot-Hedlin and Constable 1990, Sasaki 1992). Inversion data was presented to Alturas as level plans
and sections. Figures 7-7 and 7-8 show level plans of the inversions (chargeability and resistivity).
85
Figure 7-6: Coverage of the 3-D induced polarization survey completed by Alturas (acquisition lines).
Figure 7-7: Coverage of the induced polarization survey completed by Alturas (chargeability at 100 meters
image).
86
Figure 7-8: Coverage of the induced polarization survey completed by Alturas (resistivity at 100 meters
image).
87
7.2. Post-2005 Exploration – Chapi Chapi Sector
7.2.1.
Introduction
Within the Chapi Chapi sector, exploration by Alturas Minerals between 2008 and 2012 has consisted of the
following:








Geological mapping at the 1:5,000 scale over an area of 8.3 x 7.6 kilometers;
Soil geochemical sampling on lines 100 meters apart with individual samples spaced 50 meters
apart (total 1,339 samples)
Referential rock geochemical sampling collected on grids and as grab samples (total 122 samples)
Trench geochemical sampling of 7 separate trenches, consisting of continuous samples 3 meters in
length (total 269 samples).
Petrographic study of 38 samples from selected locations (Thin and polished sections)
Ground magnetics along lines 200 meters apart for a total of 104.73 line kilometers (total area 7.0 x
3.5 kilometers)
Induced polarization / resistivity surveying, pole-dipole 2D arrays along lines 200 meters apart for a
total of 65 line kilometers (total area 6.5 x 3.5 kilometers);
Diamond drilling (17 drillholes, including 2 redills, for 5,578.65 meters).
7.2.2.
Surveying
The area was previously surveyed and the locations of trenches, access roads etc. have been accurately
located.
7.2.3.
Geographic/Grid Control
Geochemical sample points, plus geoophysical lines and stations in the case of the IP/Resistivity and
surveys, and drillhole collar locations, were surveyed using hand held GPS. All coordinates reported refer to
UTM Datum PSAD56 - zone 18.
For geological mapping at the 1:5,000 scale, local company Geomechanics prepared topography obtained
by airphotogrametric restitution of aerial photos from the 60s, with a contour interval every 5 meters.
Geomechanics later established horizontal and vertical datums, orthometric height, and establishment
baselines based on various points within the project.
7.2.4.
Geological Mapping – Chapi Chapi Sector
Geological Mapping at the 1:5,000 scale was completed by Alturas in 2008 over a total area of 8.3 x 7.6
kilometers. For this exercise, Alturas contracted routine exploration work and project management to local
services company Exploandes S.R.L.
Figures 7-9 shows the coverage of the lithological and alteration mapping completed.
88
Figure 7-9: Geological mapping at 1:10,000 scale completed by Alturas in 2008. Blue polygons are the
within the Utupara-Chapi Chapi Joint Venture. Yellow is the Hualhuani Fm., light yellow is Murco Fm., blue is
Ferrobamba Fm., grey is Puno Gp., green is Tacaza Gp.
7.2.5.
Soil Geochemical Sampling – Chapi Chapi Sector
Alturas completed a systematic soil geochemical sampling program on lines 100 meters apart with individual
samples spaced 25 and 50 meters apart (total 1,339 samples). The coverage of this program is shown in
Figure 7-10. Samples of average 2 kilograms each were collected from the “B” horizon and sieved to -80
mesh. All samples were routinely assayed for gold by conventional fire-assay methods at Inspectorate´s
Soil geochemical sampling was aimed initially at the Chapi Chapi skarn corridor, plus the intrusive rocks in
the Chapi Chapi area. Later it was extended further to the east to the Huarajo target area, following the
recognition that there were strong gold anomlies around the eastern contact of the intrusive rocks with the
hornfelsed and recrystallized sedimentary sequence. Figure 7-11 shows perspective views of the results of
the soil geochemistry sampling, colour coded by copper and gold values.
89
Figure 7-10: Coverage of the soil geochemical sampling completed by Alturas (triangles).
Figure 7-11: Gridded copper (left) and gold (right) soil geochemical results from 2008 program
90
7.2.6.
Rock Chip Geochemical Sampling – Chapi Chapi Sector
Referential rock geochemical samples were collected on grids and as grab samples. Most samples consist of
material composited over an area of 3 x 3 meters (total 122 samples), or of channels taken across particular
mineralized structures etc. Figure 7-12 shows the coverage of the referential rock chip sampling.
All samples collected were routinely assayed for gold by conventional fire-assay methods at Inspectorate´s
The rock geochemical sampling in general confirmed the local hard rock sources of several of the soil
geochemistry survey, and gives confidence that the soil survey is an effective methodology in mapping the
distribution of anomalous rocks under thin colluvial cover.
Figure 7-12: Coverage of the rock chip geochemical sampling completed by Alturas (squares).
91
7.2.7.
Trench Geochemical Sampling – Chapi Chapi Sector
Previous small scale copper and gold mining of oxidized magnetite skarn bodies has occurred within
limestones of the the “Chapi Chapi Corridor”. MIRL earlier completed tranch geochemical sampling from two
of these outcropping skarn bodies, that are approximately 100 x 100 meters in size and separated by poorly
outcropping limestone. Alturas subsequently conducted its own trench geochemical sampling of 7 separate
trenches over these two skarn bodies, consisting of continuous channel samples 3 meters in length along the
walls of the trenches (total 269 samples). Figures 7-13 and 7-14 shows the location of the trench sampling.
Anaytical methods were identical to those employed in the referential rock chip geochemical sampling
program.
Figure 7-13: Coverage of the trench geochemical sampling completed by Alturas (red).
Best copper-gold intervals from Alturas´s trench geochemical sampling comes from two separate trenches,
and includes continuous sections of 18.0 meters assaying 12.7% copper and 0.13 grams/tonne gold, and
18.0 meters assaying 1.58% copper and 2.84 grams/tonne gold. Results are tabulated below in Table 7-1.
Best results came from deeply oxidized and karstic-weathered zones overlying the skarns. Copper
enrichment due to secondary processes is evident, and helps to explain the very high copper values
reported in the sampling.
92
"Chapi Chapi" Trenches
Trench
From
To
Chapi Chapi 1
0.00
Chapi Chapi 2
0.00
Chapi Chapi 3
0.00
Chapi Chapi 4
0.00
Chapi Chapi 5
0.00
Chapi Chapi 6
0.00
Chapi Chapi 7
0.00
24.0
27.0
36.0
78.0
18.0
18.0
18.0
Meters Cu (%)
Au (g/t) Mo (%)
24.0
0.15
1.26
0.03
27.0
0.05
1.07
0.01
36.0
0.17
0.22
0.02
78.0
0.32
0.30
0.00
18.0
1.58
2.84
0.01
18.0
12.68
0.13
0.00
18.0
1.90
1.59
0.00
Table 7-1: Results of the trench sampling program by Alturas over outcropping magnetite skarn bodies in
the Chapi Chapi area.
Figure 7-14: Map of the Chapi Chapi area showing results of the trench geochemical sampling of skarns
7.2.8. Petrographic and Mineralogical Studies – Chapi Chapi
Sector
Alturas commissioned a petrological study of 38 samples from selected locations within the Chapi Chapi
sector, which documented details of intrusive lithologies, alteration and sulphide mineralogy (see report by
Saenz, 2011 in Appendix 2). Several of the photographs from this report are reproduced in the following
sections.
93
7.2.9.
Geophysics – Chapi Chapi Sector
7.2.9.1. Ground magnetics survey
In June, 2011 Alturas contracted local company Arce Geofisicos to complete a detailed ground magnetics
survey over Chapi Chapi. The survey involved the acquisition of ground magnetic data along lines 200
meters apart for a total of 104.73 line kilometers (total area 7.0 x 3.5 kilometers). The data has been
processed to produce a complete set of standard image products such as total field, analytical signal,
reduced to pole, plus inversion modelling has been completed that produced a 3D picture of the modelled
magnetic susceptibility. Appendix 3 shows the full set of products.
Figures 7-15 shows a gridded image that shows the coverage of the magnetic data.
The survey revealed various magnetic high anomalies that map both magnetite -enriched diorites and
monzonites, plus endoskarn bodies around the intrusive margins. In addition, the magnetics reveals
prominent structural breaks of NE-SW and WNW-ESE strike.
Figure 7-15: Coverage of the ground magnetics survey completed by Alturas at Chapi Chapi (reduced to
pole image).
94
7.2.9.2. Induced polarization / resistivity survey
In June, 2011 Alturas also contracted Arce Geofisicos to complete a detailed induced polarization survey
over Chapi Chapi. The 2D pole-pole, “a”=50 m pole spacing, IP survey involved the acquisition of
chargeability and resistivity data along 32 lines spaced 200 meters apart for a total of 65 line kilometers (total
area 6.5 x 3.5 kilometers). These data have been processed to produce a complete set of standard image
products such as maps of chargeability and resistivity at various levels, plus pseudosections and inversion
sections for each of the 32 profiles. Appendix 4 shows the full set of products.
Figures 7-16 and 7-17 show a gridded images depicting the coverage of the induced polarization data.
Induced polarization / resistivity surveying shows a number of very large, strongly chargeable features with a
pronounced E-W elongation. Similarly, high and low resistivity features also show a distinct E-W elongation;
together these observations suggest that there is stratigraphic control to these variations in the rock
properties as the geological stratigraphy in general has a broad E-W strike. In addition, there is a suggestion
of NE-SW and WNW-ESE breaks (particularly in the resistivity data) suggesting that regional structural
breaks also influence the broad patterns that are apparent. These latter trends in turn are consistent with
those apparent in the magnetic imagery.
Figure 7-16: Coverage of the induced polarization survey completed by Alturas at Chapi Chapi (chargeability
at 100m depth image).
95
Figure 7-17: Coverage of the induced polarization survey completed by Alturas at Chapi Chapi (resistivity at
100m depth image).
96
8. DRILLING
8.1. Drilling – Utupara Sector
Alturas´s completed 4.933 meters of diamond drilling, totalling 21 drillholes, between July 2007 and February
2008. Alturas utilized the service of the local company Geotecnia Peruana, whose crew included a total of 13
people includer drillers and support techical crews. Table 8-1 lists the drillholes executed at Utupara and
Figure 8-1 shows their location. Geochemical assays from the drilling program are listed in Appendix 5.
Figure 8-1: Coverage of the Phase 1 diamond drilling completed by Alturas in 2007-8.
The principle target zones tested by the Phase 1 drilling were the Cachorro Corridor, the Cerro Añasino
Corridor and Cerro Utupara (refer to Figure 8-2).
97
HOLE_ID E
N
LENGTH AZIMUTH DIP TARGET
UTU-01
735780 8412202
410
270 -50 Cachorro 1
UTU-02
735700 8412000
300
270 -60 Cachorro 1
UTU-03
735700 8412000
209.3
90 -60 Cachorro 1
UTU-04
735350 8412200
212
270 -70 Cachorro 1
UTU-05
735715 8412540
401.2
90 -60 Cachorro 1
UTU-06
735715 8412540
362.2
250 -60 Cachorro 1
UTU-07
737040 8412500
150.05
UTU-08
735715 8412540
149.4
170 -50 Cachorro 1
UTU-09
735654 8411814
350.6
260 -50 Cachorro S
UTU-10
735409 8411609
403.9
70 -50 Cachorro S
UTU-11
736875 8412094
304
270 -50 Añasino 2
UTU-12
736547 8410781
87.8
160 -45 Añasino 3
UTU-13
736950 8411900
199.7
270 -75 Añasino 2
UTU-14
733684 8411031
85.4
180 -50 Cº Utupara
UTU-15
736355 8410868
150.1
145 -60 Añasino 3
UTU-16
733684 8410822
251
150 -50 Cº Utupara
UTU-17
736467 8410785
200
150 -60 Añasino 3
UTU-18
733684 8410822
25.2
235 -55 Cº Utupara
UTU-19
733665 8410786
301.1
210 -50 Cº Utupara
UTU-20
736423 8410827
180
UTU-21
734868 8411823
200
4932.95
90 -90 Añasino 1
150 -50 Añasino 3
180 -50 Brecha
STYLE
Cu-Au
breccia
Cu-Au
breccia
Cu-Au
breccia
Cu-Au
breccia
Cu-Au
breccia
Cu-Au
breccia
Cu-Au
skarn
Cu-Au
breccia
Cu-Au
breccia
Cu-Au
breccia
Cu-Au
skarn
Cu-Au
exoskarn
Cu-Au
skarn
Au
stockwork
Cu-Au
endoskarn
Au
stockwork
Cu-Au
endoskarn
Au
stockwork
Au
stockwork
Cu-Au
endoskarn
Cu-Au
breccia
CHARGEABILITY RESISTIVITY MAGNETICS
high
low
high-moderate
high-moderate
moderate
high
moderate
high
low
moderate
moderate
high
moderate
high
low
moderate-high
low
low
high
low
low
high
low
low
high
low
high
Table 8-1: Summary data for the Phase 1 diamond drilling completed by Alturas in 2007-8.
Cachorro Corridor targets: Alturas´s drill results from the Cachorro Corridor are encouraging and show that
higher grade and more consistent copper and gold values are largely confined to breccia bodies within the
north-south trending “Cachorro Corridor”, a belt of strong alteration, brecciation and surface geochemical
anomalism approximately 300 to 500 meters wide and greater than 1,500 meters long. Figure 8-2 and Table
8-2 summarizes these results.
Within the Cachorro Corridor Alturas completed ten widely-spaced drillholes, for a total of 2,999 meters, over
some 1.0 kilometers of strike length. All ten drillholes intersected disseminated low grade mineralization over
wide intervals extending up to 410 meters, with many holes that were directed within the Corridor reporting
tens of meter intervals of higher copper and gold grades (greater than 0.25 % copper and 0.10 grams/tonne
gold) within intrusive breccias. Drillholes that were directed outside the Cachorro Corridor (i.e. UTU-03, 04,
05) were designed instead to test both magnetic and resistivity highs, and intersected lower copper and gold
grades in less brecciated, potassically altered dioritic intrusives.
98
Utupara 2007-8 Phase 1 Drilling Program Final Results
Target
Cachorro North
Drillhole
From (m)
To (m)
Length (m)
0.00
368.00
401.20
0.00
18.00
36.00
84.00
0.00
74.00
0.00
147.70
0.00
37.75
313.70
0.00
55.40
66.55
0.00
39.90
0.00
117.30
140.00
300.95
0.00
66.15
140.30
171.50
0.00
0.00
98.00
410.00
390.00
402.00
300.00
36.00
84.00
104.00
209.30
92.80
212.00
151.00
313.70
59.25
401.20
362.20
66.55
114.50
39.90
149.40
350.60
128.50
141.20
322.95
403.90
70.80
171.50
203.20
200.00
67.00
119.50
410.00
22.00
0.80
300.00
18.00
48.00
20.00
209.30
18.80
212.00
3.30
313.70
21.50
87.50
362.20
11.15
47.95
39.90
109.50
350.60
11.20
1.20
22.00
403.90
4.65
31.20
31.70
200.00
67.00
21.50
UTU-01
including
including
UTU-02
including
including
including
UTU-03
UTU-04
including
UTU-05
including
UTU-06
including
including
UTU-08
Cachorro South
UTU-09
including
including
including
UTU-10
including
including
including
Cachorro West
UTU-21
including
including
Cu wt. Av. (%) Au wt. Av. (g/t)
0.11
0.28
1.09
0.10
0.37
0.04
0.33
0.07
0.13
0.07
0.59
0.05
0.10
not assayed
0.10
0.37
0.22
0.13
0.06
0.14
0.27
0.72
0.30
0.09
0.15
0.12
0.21
0.11
0.16
0.12
0.02
0.04
0.14
0.11
0.15
0.35
0.16
0.02
0.05
0.03
0.43
0.03
0.05
not assayed
0.07
0.43
0.28
0.12
0.04
0.09
0.18
0.72
0.29
0.06
0.22
0.05
0.27
0.04
0.05
0.09
Table 8-2: Summary data for the Phase 1 diamond drilling completed in the Cachorro Corridor
Figure 8-2: Detail of the drilling results from the Cachorro Corridor
99
The Cerro Añasino targets are skarn lenses distributed over 2.7 x 0.5 kilometers and aligned along a
northeast –striking contact-parallel fault system. Chalcopyrite, pyrite and pyrrhotite are associated with
massive magnetite and a typical skarn gangue. Strong geochemical anomalies occur in spot surface rock
samples, up to 5.28% copper and 5.07 grams/tonne gold. Followup trenching, along an access road cutting
the most anomalous area, defined a continuous zone of 38.5 meters grading 0.32% copper, which itself
reported an interval of 5.50 meters grading 0.35 grams/tonne gold. Mineralized zones are associated with
low resistivity and high chargeability.
Within the Cerro Añasino structure the Corporation completed seven drillholes, for a total of 1,272 meters, in
three clusters (Cerro Añasino 1,2,3) over some 1.8 kilometers of strike length. Table 8-3 summarizes these
results. Results were generally below expectations, although some interesting sections of tens of meters
widths of low grade copper and gold were intersected at Cerro Añasino 2 (e.g. UTU-11 with 10.75 meters @
0.22% copper, 0.45 grams/tonne gold) and Cerro Añasino 3 (UTU-17 with 78.9 meters @ 0.22% copper,
0.02 grams/tonne gold). In addition, narrow high grade structures were occasionally intersected at Cerro
Añasino 2 and 3 (e.g. UTU-13 with 1.10 meters @ 6.10 grams/tonne gold and UTU-12 with 2.90 meters @
1.28% copper, 0.23 grams/tonne gold) ,
Target
Cerro Añasino 1
Cerro Añasino 2
Hole No.
From (m)
To (m)
Interval (m)
Cu (%)
Au (g/t)
0.00
0.00
124.25
156.00
169.70
184.90
0.00
5.80
35.10
56.55
0.00
3.30
6.20
0.00
54.10
0.00
88.10
0.00
36.00
88.90
150.05
304.00
135.00
156.90
173.15
196.80
199.70
35.10
36.20
75.85
87.80
6.20
36.70
150.10
85.80
200.00
167.00
180.00
67.40
96.40
150.05
304.00
10.75
0.90
3.45
11.90
199.70
29.30
1.10
19.30
87.80
2.90
30.50
150.10
31.70
200.00
78.90
180.00
31.40
7.50
0.01
0.07
0.22
0.52
0.22
0.29
0.04
0.09
0.06
0.07
0.11
1.28
0.18
0.05
0.15
0.12
0.22
0.07
0.18
0.14
0.00
0.06
0.45
0.30
0.07
0.18
0.15
0.34
6.10
0.41
0.02
0.23
0.02
0.01
0.03
0.02
0.02
0.01
0.02
0.02
UTU-07
UTU-11
including
including
including
including
UTU-13
including
including
including
Cerro Añasino 3
UTU-12
including
including
UTU-15
including
UTU-17
including
UTU-20
including
including
Table 8-3: Summary data for the Phase 1 diamond drilling completed in the Cerro Añasino Corridor
The Cerro Utupara target occurs along the intrusive-quartzite contact over an area of 750 x 500 meters.
Swarms of discrete and anastomosing high grade gold-silver-base metal veins up to 2.00 meters wide and
up to 200 meters in strike length have been worked historically and typically consist of quartz-barite-sericitepyrite with a broader alteration selvedge. Sampling by Alturas reported gold grades of between 5 and 9.3
grams/tonne over intervals between 0.10 and 1.00 meter in surface rock sampling of the individual veins.
One sample of 5.00 meters width across a veined and fractured quartzite zone yielded an average grade of
2.30 grams/tonne gold. Geophysically the areas of higher vein density correspond with zones of moderate
chargeability (reflecting disseminated pyrite) and very weak magnetic susceptibility.
Within the Cerro Utupara target the Corporation completed four drillholes, for a total of 663 meters, in two
clusters spaced approximately 250 meters apart. Table 8-4 shows the results of the drilling. Results were
below expectations, and the model of a disseminated gold target within the fractured quartzites between
individual gold veins was not substantiated. The best result was obtained in drillhole UTU-19, which
intersected a narrow quartz vein reporting 9.80 grams/tonne gold over 0.30 meters.
100
Target
Hole No.
Cerro Utupara
From (m)
To (m)
Interval (m)
Cu (%)
Au (g/t)
0.00
0.00
0.00
102.90
0.00
0.00
71.35
73.60
85.40
251.00
0.95
103.40
24.60
301.10
75.90
73.90
85.40
251.00
0.95
0.50
24.60
301.10
4.55
0.30
0.01
0.01
0.00
0.76
not assayed
0.01
0.01
0.01
0.01
0.03
1.03
3.84
not assayed
0.03
0.88
9.80
UTU-14
UTU-16
including
including
UTU-18
UTU-19
including
including
Table 8-4: Summary data for the Phase 1 diamond drilling completed at Cerro Utupara
8.2. Drilling – Chapi Chapi Sector
Alturas´s completed 5.578.65 meters of diamond drilling, totalling 15 drillholes (plus 2 redrills), between July
2011 and April 2012. Alturas mainly utilized the services of international company Ingetrol (EX1250 and
1500 rigs) and to a lesser amount the local company Geotecnia Peruana (LG44 rig).
Table 8-5 lists the collar details of the drillholes executed at Chapi Chapi and Figures 8-4 to 8-10 show their
location with respect to the geology, geochemistry and geophysics. Geochemical assays from the drilling
program are listed in Appendix 6.
Figure 8-3: Coverage of the diamond drilling completed at Chapi Chapi by Alturas in 2011-12.
101
HOLE_ID
EASTING
NORTHING ELEVATION LENGTH
CHA-11-001
740518.068
8411280.268
4515.050
300.40
AZIMUTH
135
DIP
CHA-11-002
742602.370
8410325.179
4632.950
341.40
0
TARGET
-70 Huincho Huincho
-60 Huarajo Norte
CHA-11-002A
742623.229
8410533.536
4612.050
501.90
0
CHA-11-003
740863.347
8410887.528
4506.920
220.90
230
CHA-11-004
742305.961
8411973.67
4297.37
407.80
160
CHA-11-005
741620.042
8409683.464
4492.850
344.40
360
CHA-11-006
740913.932
8409844.509
4518.970
80.20
305
CHA-11-006A
740913.860
8409845.367
4519.000
257.30
305
CHA-11-007
741158.555
8409895.872
4519.390
325.50
150
-65 Saullo
-65 Saullo
CHA-11-008
741038.356
8410876.542
4545.270
370.40
170
-85 Chapi Chapi
CHA-12-009
740916.835
8409842.455
4518.660
353.40
185
-75 Saullo Sur Este
CHA-12-010
740852.843
8410726.420
4561.940
304.40
350
-75 Chapi Chapi
CHA-12-011
741012.123
8410412.158
4617.570
450.25
0
-90 Mirador
CHA-12-012
742140.939
8410245.229
4625.730
353.40
0
-90 Huarajo
CHA-12-013
740626.684
8410223.575
4567.070
0
-90 Saullo
CHA-12-014
741191.749
8411311.805
4410.410
418.50
96.00
CHA-12-015
741268.126
8410163.726
4546.490
452.50
220
130
-90 Huarajo Norte
-78 Chapi Chapi
-50 Jacuiere
-65 Huarajo Sur
-65 Saullo
-75 Chapi Chapi
-75 Saullo Este
Table 8-5: Summary data for the diamond drilling at Chapi Chapi completed by Alturas in 2011-2.
Figure 8-4: Detail of the diamond drilling completed at Chapi Chapi by Alturas in 2011-12. Interpreted
geology is shown in colour for reference, as well as prospect names.
102
Figure 8-5: Detail of the diamond drilling completed at Chapi Chapi by Alturas in 2011-12. Soil geochemical
anomalies (copper) are shown in colour for reference, as well as prospect names.
anomalies (gold) are shown in colour for reference, as well as prospect names.
103
anomalies (molybdenum) are shown in colour for reference, as well as prospect names.
Figure 8-8: Detail of the diamond drilling completed at Chapi Chapi by Alturas in 2011-12. Analytical Signal
(Magnetics) is shown in colour for reference, as well as prospect names.
104
Figure 8-9: Detail of the diamond drilling completed at Chapi Chapi by Alturas in 2011-12. Chargeability at
300m depth is shown in colour for reference, as well as prospect names.
Figure 8-10: Detail of the diamond drilling completed at Chapi Chapi by Alturas in 2011-12. Resistivity at
300m depth is shown in colour for reference, as well as prospect names.
105
Chapi Chapi Target: Drillholes CHA-11-003, CHA-11-008, CHA-12-010, CHA-12-014
Drilling in the “Chapi Chapi” target zone aimed to test outcropping, copper- and gold- rich, magnetite-skarn
bodies and a plutonic complex comprising dioritic, monzodioritic and monzonitic stocks. The intrusive rocks
display phyllic, stockwork-style alteration and anomalous copper and gold values at surface. Geophysically
the target area is characterized by a 1.2 x 0.5 km dimension magnetic complex most likely reflecting the
strong magnetite alteration present in both the exo- and endoskarns around the limestone-intrusive
contact.
Holes CHA-11-03 and CHA-12-10 recorded the best results in exoskarn, intercepting intercalated
packages of propilitically-altered dioritic to monzonitic stocks and sub-horizontal magnetite skarn zones
that can be correlated with exoskarn bodies outcropping 250 meters west of the drillhole collars (Figure 811). The skarn features abundant disseminations and veinlets of sulphides with significant copper-gold
mineralization. Drillhole CHA-11-03 was lost due to ground conditions at 221 meters, bottoming at the top
of another mineralized magnetite-skarn zone.
The mineralized exoskarn rock is a magnetite-rich garnet-pyroxene-wollastonite skarn affected by
retrograde hydrothermal alteration including magnetite, actinolite, calcite, scapolite, albite and sulphides
(pyrite, chalcopyrite, pyrrhotite, gold and molybdenite). Table 8-6 below lists the significant mineralized
exoskarn intervals from the drillholes at the Chapi Chapi target.
Target
Drill Hole From (m)
35.50
"
80.60
80.60
" i ncl udi ng
CHA‐12‐10
74.00
86.00
" i ncl udi ng
90.00
" i ncl udi ng
To (m) Length (m)
58.10
22.60
95.30
14.70
85.40
4.80
114.50
40.50
114.50
28.50
109.10
19.10
Cu (%)
0.35
0.52
0.93
0.30
0.39
0.53
Au (g/t)
0.25
0.27
0.44
0.30
0.39
0.53
Ag (g/t)
1.30
1.81
3.00
1.63
2.08
2.08
Mo (%)
0.01
0.01
0.02
0.03
0.04
0.05
Table 8-6: Summary downhole data for exoskarn-dominated mineralisation intersected in Alturas’s diamond
drilling at Chapi Chapi
Approximately 180 meters northeast of the holes described above, garnet-pyroxene skarns occur on
surface at the contact with a large dioritic to monzonitic plutonic intrusive complex. In the proximity of the
monzonitic intrusive, which shows porphyry-style alteration, the skarn bodies are affected by retrograde
alteration and mineralization. This area is characterized by relatively high values of molybdenum in the
soils. Drillhole CHA-11-08 is highlighted, intersecting 178 meters of endoskarn intercalated with
monzonitic porphyry intrusives, where the mineralization is associated with phyllic and propylitic alteration,
including quartz-sericite, calcite, chlorite, magnetite, pyrite and chalcopyrite (Figure 8-12). The molybdenite
content is unusually high, reporting an intercept of 36.80 meters averaging 0.21% molybdenum.
Target
Drill Hole From (m)
93.75
To (m) Length (m)
177.70
83.95
137.30
36.80
Cu (%)
0.15
0.16
Au (g/t)
0.05
0.07
Ag (g/t)
0.83
0.33
Mo (%)
0.10
0.21
Table 8-7: Summary downhole data for endoskarn-dominated mineralization intersected in Alturas’s
diamond drilling at Chapi Chapi
Huincho Huincho Target: Drillhole CHA-11-001
Drillhole CHA-11-001 was collared to the west of a strong copper-gold geochemical anomaly forming part of
the “Chapi Chapi Corridor” defined by soil and trench geochemistry sampling in Section 7.2.7. The hole was
directed beneath the geochemistry anomaly and was steeply inclined to the southeast, commencing in
limestones and encountering several broad intervals of hydrothermal breccia before entering a diorite
intrusive rock towards the bottom of the hole (Figure 8-13).
106
Only a few meters-wide and weakly anomalous gold- and silver-bearing intervals (up to 0.20 g/t gold) were
encountered, associated with with zones of hydrothermal brecciation of the host limestones. It is possible
that the drillhole cut around 170-200 mteres downhole a NE-SW striking structure controlling the strong
surface geochemical anomalism east of the collar, but this interpretation is not clear.
Figure 8-11: Drillhole CHA-11-003 downhole lithology and geochemical section (Chapi Chapi Target)
107
j
Figure 8-12: Drillhole CHA-11-008 downhole lithology and geochemical section (Chapi Chapi Target)
108
Figure 8-13: Drillhole CHA-11-001 downhole lithology and geochemical section (Huincho Huincho Target)
109
Huarajo Target: Drillholes CHA-11-002, CHA-11-002A, CHA-11-005, CHA-12-012
The Huarajo target area is characterized by broad gold and silver anomalism in the soil geochemistry and a
moderate to highly chargeable geophysical response in the geophysics. Drillholes CHA-11-02 and CHA11-02A tested a combination of high chargeable and low resistive geophysical anomalies underlying a
moderate magnetic anomaly in the central part of the Huarajo target area. Outcrops in this area include
altered and brecciated sandstones and intrusive fingers, both showing phyllic, stockwork-type alteration
and moderate copper and gold rock chip geochemical anomalies. The two drillholes intercepted a thick
sedimentary sequence including feldspathic- and quartz-rich sandstones intercalated with shales and
siltstones, all displaying intense phyllic alteration with abundant pyrite throughout.
Gold-silver mineralization is associated with shallow-dipping hydrothermal breccias with silica, sericite and
pyrite in the matrix (sphalerite and tetrahedrite have also been reported), replacing selected sandstone
units that can be correlated for the 200 meters between drillholes CHA-11-02 and CHA-11-02A (see Table
8-8 and Figure 8-14 below). As shown, significantly elevated gold and silver characterize the hydrothermal
breccia zones.
Target
Huarajo
Drill Hole From (m)
CHA‐11‐02
14.50
"
45.30
45.30
" i ncl udi ng
"
151.50
"
181.00
"
269.30
"
311.40
"
325.40
CHA‐11‐02A 13.20
13.20
" i ncl udi ng
"
121.20
"
182.80
"
275.15
"
285.40
"
291.40
"
317.50
To (m) Lenght (m)
17.50
3.00
70.20
24.90
47.00
1.70
157.00
5.50
209.00
28.00
285.80
11.30
313.40
2.00
334.30
8.90
43.20
30.00
28.00
14.80
147.90
26.70
147.90
10.30
193.60
10.80
276.40
1.25
287.60
2.20
292.90
1.50
318.10
0.60
Cu (%)
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Au (g/t)
0.16
0.12
0.40
0.14
0.27
0.23
0.22
0.22
0.37
0.67
0.39
0.66
0.17
0.16
0.25
0.20
0.35
Ag (g/t)
‐
0.57
2.10
3.50
0.35
1.18
3.30
1.06
0.67
1.30
1.45
2.75
1.10
0.95
0.62
0.90
7.90
Mo (%)
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Table 8-8: Summary downhole data for quartzite-hosted mineralisation intersected in Alturas’s diamond
drilling at Huarajo
Drillholes CHA-11-005 and CHA-12-012 were drilled into thick metasedimentary sequences in areas of
moderate chargeability and moderate to high resistivity. Generally low (but anomalous) gold- and silver –
bearing intervals in the range of were encountered, in the range of 0.10 - 0.56 g/t gold over isolated intervals
of a few meters. Like drillholes CHA-11-02 and CHA-11-02A these geochemically anomalous intervals
correspond to zones of hydrothermal brecciation and sulfidization within the thick packages of altered
metasedimentary rocks (see Figure 8-15).
110
Figure 8-14: Drillhole CHA-11-002,2A downhole lithology and geochemical section (Huarajo Target)
111
Figure 8-15: Drillhole CHA-11-005 downhole lithology and geochemical section (Huarajo Target)
112
Mirador Target: Drillhole CHA-12-011
Drillhole CHA-12-011 was a vertical hole collared off the southern end of the combined copper-gold
geochemistry / magnetic anomalies comprising the Chapi Chapi target area. The author believes that the
hole was pursuing a geophysical target characterized by an E-W axis of very low resistivity.
Towards the top of the hole from 1.60 to 89.70 meters, intercalated endoskarn, arenites and monzonite
were encountered, but from thereon downwards until the end of the hole at 450.25 meters, a porphyritic
monzonite was cut. Strongly geochemically anomalous intervals (copper, gold, molybdenum) occur mainly
towards the top of the hole from 1.60 to 37.10 meters within endoskarn and altered monzonite lithologies
(with magnetite, k-feldspar, biotite, actinolite, chlorite etc.). However, strongly anomalous molybdenum (up
to 150ppm) is reported over narrow intervals throughout the monzonite intrusive rock.
Saullo Target: Drillholes CHA-11-006, CHA-11-006A, CHA-11-007, CHA-12-009, CHA-12-013, CHA-12015
Porphyry-style alteration and accompanying low grade metallic mineralization occurs in the monzonitic and
monzodioritic intrusives and in sandstone/siltstone metasediments within the Saullo Target area. The Saullo
Target is characterized by generally low surface geochemical anomalism, patchy magnetic anomalies,
moderate to high chargeability and generally low resistivity.
The various drillholes completed at Saullo intersected moderate potassic alteration with disseminations and
discontinuous veinlets of chalcopyrite and molybdenite, plus superimposed phyllic and propylitic alteration
containing chalcopyrite, molybdenite, pyrite and pyrrhotite. Low-grade, copper-gold-molybdenum
mineralization has been reported over broad intervals from several drillholes at Saullo.
Hole CHA-11-06A (a redrill of CHA-11-06) was collared in monzonite and inclined -650 to the southwest.
After intersecting 147.50 meters of potassically-altered porphyritic monzonite and equigranular monzodiorite,
the hole cut a mixture of intercalated silica- and sericite-altered sandstones and siltstones with lenses (sills?)
of monzonite until the end of the hole at 257.30 meters (Figure 8-16). Sporadic pyrite, chalcopyrite and
molybdenite were reported throughout, with copper and molybdenum anomalous in anomalous amounts
over broad intervals. However, gold mineralization is the most notable in the lower 110.0 meters of the
drillhole; gold values up to 1.95 g/t were reported over meters-wide intervals.
Hole CHA-11-007 was collared in an altered metasedimentary sequence and inclined -650 to the southeast
(Figure 8-17). The hole cut an alterated sequence of intercalated sandstones and siltstones, cut by
monzonite sills and hyrothermal breccia zones. The intrusive rocks display strong potassic alteration and the
metasedimentary rocks tend to display more phyllic and silica alteration; overall copper, gold, silver and
molybdenum values were low to anomalous, with a few meters-wide intervals reporting up to 0.27 g/t gold.
Hole CHA-12-09 was collared from the same platform as hole CHA-11-06A, but was inclined steeply (-750)
to the south. The drillhole passed through 235.10 metres of potassic-, phyllic- and argillic- altered monzonite
before entering a mixed sequence of meta-arenites and monzonite sills between 235.10 and 276.25 meters.
From 276.25 meters to the end of the drillhole at 353.40 meters, the hole cut intensely potassic-, phyllic- and
argillic- altered monzonite and monzodiorite. Geochemical anomalism is weak to moderate and broadly
dispersed within the intrusive rocks, with sporadic intervals of higher values over widths of meters: copper
attains 0.25%, gold 0.46 g/t and molybdenum 157 ppm.
Hole CHA-12-013 was a vertical hole collared above the zone of highest chargeability, lowest resistivity
geophysical response at Saullo. The first 168.00 meters of the drillhole were in skarn- and propyliticallyaltered hornfels (metasediments) cut by ocassional sills of monzonite; subsequently the hole cut altered
monzonites with ocassional meta-arenite xenoliths down to 273.00 meters. From there the hole passed
through a transitional zone a few meters wide of contact breccia, before entering a mixed sequence of
phyllic-altered meta-arenites and shales until the end of the hole at 418.50 meters. Geochemically the hole is
characterized by sporadic and broad, low grade copper, gold and molybdenum mineralization over tens to
113
hundreds of meters, with isolated meters-wide intervals of more elevated grade (in these intervals copper
attains 0.48%, gold 2.22 g/t, molybdenum 668ppm).
Hole CHA-12-015 was drilled steeply inclined (750) to the southeast and was collared in potassic-altered
monzonite porphyry, along the same E-W chargeability high-resistivity low as drillhole CHA-12-013 to the
west. CHA-12-015 encountered potassic-, phyllic- and propyllitic-altered monzonite and monzodiorite down
to 385.20 meters, before encountering a metasedimentary sequence that persisted down to 452.50 meters
(end of the hole). The clastic metasedimentary sequence is intruded by thick dykes or sills of monzodiorite
and is strongly altered to phyllic-, argillic- and potassic-alteration facies. Pyrite and pyrrhotite mineralization is
strongly developed, particularly within the intrusive rocks. Like CHA-12-013, the hole is characterized by
sporadic and broad, low grade copper, gold and molybdenum mineralization over tens to hundreds of
meters. Isolated meters-wide intervals of more elevated grade (in these intervals copper attains 0.15%, gold
0.86 g/t, molybdenum 149ppm). In places there appears to be a relationship between higher metal values
and quartz veins.
Jacuire Target: Drillhole CHA-11-004
The Jacuire Target area lies along the contact between intrusive rocks and limestones of the Ferrobamba
Formation to the east. Quartz-magnetite veining typical of a porphyry stockwork has been locally reported
within the intrusive rocks. Geophysically the area is characterized by a strong magnetic high complex
apprimately 0.40 x 0.30 kms in size.
Drillhole CHA-11-004 was inclined moderately (-500) to the southeast on the northern edge a large E-W
chargeability high some 2.0 x 0.5 kilometers in dimension that passes from the intrusive contact eastwards
under the Ferrobamba limestones. The hole was collared in intrusive monzo-diorite and cut a mixture of
monzodiorites and porphyritic monzonites with common endoskarn alteration and some quartz-magnetite
veining down to 125.40 meters (Figure 8-18). From there down to 383.50 meters, the hole encountered
monzodiorites with diorites, together with common endoskarn lenses. At 383.50 meters, the hole passed into
an arenaceous metasedimentary sequence with some skarn-altered intervals until the end of the hole at
407.80 meters.
Moderate to strong pyrite alteration is common throughout the hole and potassic, phyllic and endoskarn
alteration are more common within the intrusive rocks, whilst phyllic alteration is more common in the
mestasedimentary rocks. Geochemically, slightly to moderately anomalous levels of copper and
molybdenum were reported; however copper and gold only attain levels of interest towards the top of the
hole in sub meter-wide zones associated with faulting and discrete veins (copper attains 0.15%, gold attains
3.35 g/t).
114
Figure 8-16: Drillhole CHA-11-006A downhole lithology and geochemical section (Saullo Target)
115
Figure 8-17: Drillhole CHA-11-007 downhole lithology and geochemical section (Saullo Target)
116
Figure 8-18: Drillhole CHA-11-004 downhole lithology and geochemical section (Jacuire Target)
117
9. SAMPLING METHOD AND APPROACH
9.1. Soil sampling procedure
Vegetation cover is carefully removed and a pit is excavated to the “B” horizon. Roots, vegetation and large
rock fragments are removed. The depth is measured and the material removed is sieved to -2mm to obtain
approx. 2 kg of sample. The material is bagged into semi-permeable porous bags, labelled and ticketed. The
pit excavated is infilled in the reverse order as the various materials were removed.
9.2. Rock chip (outcrop and grid) sampling procedure
The surface of the rock is cleaned as much as possible to eliminate oxidized material. Chips are broken from
rocks over an average radius of 3 meters, or in some cases tranverse channels across structures etc.
Fragments sizes do not exceed 3-4 centimeters. A composite sample of 2-3 kilograms is bagged in plastic
bags, labelled and sealed with a large staple gun.
9.3. Trench sampling procedure
Essentially the procedure is similar to that of the rock chips, except rock fragments are extracted from the
walls of threnches, with a strong emphasize on equal and representative sampling of the intervals, without
sampling bias towards mineralized or oxidized material etc. The sample is removed with a pick or hammer
and chisel, collected on a metal tray and composited in a plastic bage, for 2-3 kilograms. It is then labelled,
ticketed and sealed.
9.4. Core Sampling Procedures
After the logging the core, sampling is designed to maximize information on geochemical characteristics of
each zone. Sample intervals are designed based on lithological and alteration contacts, presence of
mineralization etc.. The minimum sample interval is 50 centimeters, and the maximum is 2 meters. Core
cutting is carried out with a fixed diamond circular saw (electric). The core is cut along a longtitudinal line,
splitting the core into into two equal parts; half of the sample is composited for geochemical analysis and the
other half is stored in core boxes for later reference. The sample fragments are put into coded bags with the
sample number and ticket attached. The bags are then stapled to the ticket and the sample number is
highlighted of both sides of the bag with the help of a marker. The sample code is recorded also in the core
box and also marked on the other half of the control core in the corresponding interval.
118
10. SAMPLE PREPARATION, ANALYSIS AND SECURITY
Strict sample integrity is maintained throughout the geochemical sampling program at Utupara-Chapi Chapi.
The bagged samples are transported by Alturas staff to the city of Abancay in Southern Peru where they are
shipped directly to Inspéctorate Services Perú SAC Labs in Lima. Inspectorate is an ISO 9001:2000 certified
laboratory that is preparing for ISO 17025 accreditation. At the Inspectorate´s Lima facility, all samples are
dried then crushed to 90% -10 mesh (<2mm) size; then riffle split to obtain an approximately 200 gram
subsample. The subsample is further crushed to 95% -200 mesh (<75 microns) to obtain a 100 gram split
ready for analysis. All samples are routinely assayed for gold by conventional fire-assay methods at
Inspectorate´s Lima facility, and for 33 additional elements (including silver, copper, lead, zinc) using aqua
regia acid digestion followed by Inductively Coupled Plasma-Atomic Emission Spectroscopy ("ICP-AES")
analysis.
Alturas follows a rigorous QC/QA program, including routine insertion of standards and blanks as well as
assay of duplicate samples at other independent laboratories. Certified standards, of known gold grade are
inserted “blind” at regular intervals as an independent check on assay accuracy.
119
11. DATA VERIFICATION
None of the historical assay data has been specifically verified by Alturas, via resampling of drill cores etc. It
has been noted, however, the broad coincidence between the results obtained by Alturas and the adjacent
sampling results from the Milpo and MIRL programs is an indication that, in general, assay results are
consistent and repeatable.
120
12. ADJACENT PROPERTIES OF INTEREST
12.1.
Regional Scale
Utupara-Chapi Chapi lies within the Andahuaylas-Yauri Belt of southern Peru, an emerging and increasingly
important porphyry copper and skarn belt (Perello et al., 2003). The Belt strikes NW-SE and can be traced
for more than 300 kilometres of strike length. The Andahuaylas-Yauri hosts important copper-goldmolybdenum camps/deposits at Las Bambas, Los Chancas, Cotambambas and Tintaya and is probably a
northern extension of the copper-rich belt of the same Eocene-Oligocene age that strikes broadly N-S in
Chile (refer back to Figure 4-2).
A regional stream sediment dataset over all of southern Peru collected by the government agency
(INGEMMET) underscores the prospectvity of the Chapi-Chapi Utupara district. Figure 12-1 shows an image
of copper geochemistry from this dataset, that allows two broad but distinct belts of drainage copper
anomalism to be defined. One is a NW-SE belt that connects the Tintaya, Katanga and Las Bambas camps,
the other is a NE-SW belt that contains Las Bambas, Los Chancas and Utupara.
Note that all important copper-gold mineral camps lie within areas of >50 ppm copper, as does UtuparaChapi Chapi. Below Utupara, a single sample collected by INGEMMET from Utupara Creek reported 588
ppm copper and 4,750 ppm gold.
Figure 12-1: Copper drainage geochemical anomalies in the Eocene-Oligocene copper belt southern Peru
from the INGEMMET regional drainage dataset. Yellow shaded areas are >50 ppm copper. Blue stars are
copper-gold-molybdenum skarn / porphyry deposits, red stars are gold-silver epithermal deposits. North
arrow is 50 kilometres long.
121
12.2.
District scale
Six significant mineral properties that lie within a 60 kilometre radius of the Utupara-Chapi Chapi property:

Las Bambas copper-gold project lies 60 kilometres ENE of Utupara-Chapi Chapi and is a very
large copper-gold skarn / porphyry system. The project was privatized by the Peruvian government
in 2004, with the winner Xstrata paying US$ 121 million. The Xstrata plc Board approved
development of the Las Bambas project in August 2010. The project will produce an average of
400,000 tonnes of copper in concentrate including significant gold, silver and molybdenum byproducts, at first quartile cash costs. The mine is expected to start commissioning in fourth quarter of
2014. The project’s Environmental and Social Impact Assessment received community approval in
July 2010 and was approved by Peruvian authorities in March 2011. Construction commenced in the
first half of 2012 following the receipt of the final construction permit in May 2012. Las Bambas has a
published resource of 1,710 mT @ 0.60% copper, 0.018% molybdenum.

Cotabambas copper-gold project lies 60 kilometres NE of Utupara-Chapi Chapi and is owned by
Canadian junior company Panoro Resources. It is a very large copper-gold porphyry system with a
NI 43-101 inferred mineral resource estimate of 404.1 Mt at 0.42% Cu, 0.23 g/t Au and 2.84 g/t Ag at
a cut-off of 0.20 % CuEq.

Los Chancas copper-molybdenum project lies 40 kilometres NW of Chapi Chapi - Utupara and is
a copper-gold porphyry discovered by Southern Peru Copper Corporation in the late 1990’s. A
decision on Los Chancas is expected early in 2013 following completion of a feasibility study. Los
Chancas is expected to produce 80,000 tonnes of copper per year when in production and has a
published resource of 128 mT @ 0.48% copper, 0.03% molybdenum in oxides and 482 mT @
0.55% copper, 0.04% molybdenum in sulfides.
Figure 12-2: Los Chancas copper-gold porphyry, showing access roads and drill pads prepared by SPCC.

Antilla copper-molybdenum project lies apart and 10 kilometers WNW of Utupara-Chapi Chapi. It
is a quartzite-hosted oxide copper deposit related to intrusive monzonie dykes owned by Panoro
Resources. Antilla has a published resource of 154 mt @ 0.47% copper, 0.009 molybdenum and
further exploration has recently been recommenced there.
122

Trapiche copper-molybdenum project lies about 10 kilometers S of Utupara-Chapi Chapi and is a
large porphyry-skarn system. The project is owned by local miner Buenaventura and has been
explored extensively by drilling.

Chama gold project is totally enclosed by the Chapi Chapi properties. It is a small high sulfidation
gold system owned by a private syndicate, with no published resource figures.
IT SHOULD BE NOTED THAT MINERALIZATION ON OTHER PROPERTIES DISCUSSED IN THIS
REPORT IS NOT NECESSARILY INDICATIVE OF THE MINERALIZATION ON THE UTUPARA-CHAPI
CHAPI PROJECT
123
13. MINERAL PROCESSING AND METALLURGICAL TESTING
No metallurgical test work has been done on mineralized material from the Utupara-Chapi Chapi Property.
124
14. MINERAL RESOURCE AND MINERAL RESERVE
ESTIMATES
There is no current formal mineral resource or reserve estimate for the Utupara-Chapi Chapi property.
125
15. OTHER RELEVANT DATA AND INFORMATION
There author is not aware of any other relevant information related to either property that is not described in
this report that would change the interpretation or conclusions.
126
16. INTERPRETATION AND CONCLUSIONS
16.1.
Utupara Sector
16.1.1. Porphyry copper-gold
At Utupara, previous work by Milpo and more recently by Alturas has established the presence of a large
disseminated copper-gold porphyry / breccia system in the Cachorro Corridor, with sulfide mineralization
generally associated with the potassic, phyllic and transitional propyllitic phases of the alteration system.
In the author´s assessment, the copper-gold system has not been adequately tested and further drilling of
this very large area is required. Targets are likely to be pipe-like zones of higher copper-gold grade within the
broad sulfidic envelope.
Further exploration will represent a significant increase in risk because of the likely complex geometry of
targets. However, the rationale for proposing that other untested targets with higher copper-gold grades
might exist is as follows:
1. Numerous broad (hundreds of meters wide) zones of broad low grade copper-gold were
encountered in the 2008 Alturas drilling, within which intervals of higher copper-gold grade of meters,
to tens of meters, thickness were intersected;
2. The higher grade copper-gold intervals tend to be associated with k-felspar and albite alteration
together with sulfides, which most likely would correspond to areas of high resistivity and high
chargeability. There is a strong suggestion of this correlation when all datasets are integrated
(Figure 16-2, 16-3, 16-4);
3. Alturas´s Phase 1 drilling tended to focus within zones of low resistivity, high chargeability within
one chargeability anomaly of the Chapi Chapi Corridor. Drilling to date may therefore have
preferentially sampled the more chloritic (+pyritic) alteration facies, marginal to the core of the high
grade breccia pipes;
4. Alturas´s and Milpo´s drilling focused largely on one of four high chargeability anomalies. The
remaining three chargeability anomalies have not been drill tested;
5. Beneath the Cachorro Corridor, a deep magnetic target exists below the low grade copper-gold
intercepts reported (Figure 16-1). This magnetic anomaly may represent a possible higher grade
“core” to the system at greater than 300 meters vertical depth, overlain by higher grade shoots or
breccia pipes.
Therefore, the target is considered to be of moderate to high priority and requires drill testing of the concept
in at least two or three well sited drillholes.
Figure 16-1: Large deep high magnetic susceptibility body modeled beneath the Cachorro Corridor.
127
Figure 16-2: Chargeability section showing higher grade copper (green histogram) and gold (orange
histogram) in drilling, intersecting zones of higher chargeability
Figure 16-3: Resistivity section showing higher grade copper (green histogram) and gold (orange histogram)
in drilling, intersecting zones of higher resistivity
128
Figure 16-4: 3-D perspective view looking south of the Cachorro Corridor area showing combined high
chargeability / high resistivity anomalies (solid green bodies) and their broad correlation with higher copper
grade in drilling (indicated by greater diameter of drillhole trace). Large volumes remain untested by drilling.
16.1.2. Skarn copper-gold
Skarn mineralization intersected in the Utupara Sector within the Cerro Añasino Zone is of low copper-gold
tenor hosted largely by endoskarn. Whilst some of the pyrrhotite-rich intervals intersected at Cerro Añasino 2
and 3 exhibit higher copper and gold values, the author´s opinion is that these zones will be insufficient to
define a future economic mineralized body.
Skarn-style mineralization appears to be largely confined to the NE-SW striking structural corridor that
controls the mineralization, with limited skarn alteration of the adjacent limestones. Exoskarn hosted by the
limestones is likely to be concealed and represents a high-risk exploration proposition.
The target is therefore considered to be of low priority.
16.1.3. Structurally-controlled gold hosted by quartzite
The limited drilling at Cerro Utupara suggests that gold mineralization there is confined to narrow structures
less than 1 meter wide. To date there is no clear indications, either from surface sampling or from drilling,
that bulk-mineable gold zones of tens to hundreds of meters width might exist there. Instead the vein
systems more likely represent narrow vein-mining propositions on a small scale.
The target is considered to be of relatively low priority.
129
16.1.4. Structurally-controlled gold hosted by intrusive rocks
No drilling has been completed across the vein systems of the Titiminas zone to assess the bulk mineable
prospectivity of the high grade gold vein systems hosted by the intrusive rocks. However, limited surface
geochemical sampling suggests that the high gold grades decrease abruptly away from the central
mineralized structures and that dissemination into the wall rock is very limited. As in the case of the quartzitehosted veins, the intrusive-hosted vein systems more likely represent narrow high grade vein-mining
propositions on a small scale.
The target is considered to be of a low to moderate priority.
16.2.
Chapi Chapi Sector
16.2.1. Porphyry copper-gold
Alturas´s work has uncovered a number of chalcopyrite-, molybdenite- and pyrite-bearing monzonite dykes
cutting the older dioritic rocks and Cretaceous sedimentary sequences within the Chapi Chapi Sector. Their
ubiquitous presence, plus the widespread development of potassic, phyllic, propyllitic and argillic alteration
facies within a range of host lithologies, indicates the operation of district-scale porphyry-style mineralizing
processes. In spite of porphyry-style alteration having been mapped, and restricted outcrops of stockworkbearing intrusives having been identified, Chapi Chapi has not yet yielded a large, discrete zone of
disseminated porphyry mineralisation of potential economic grade. That is, a lot of “smoke” has been drilled
to date but the “fire” is yet to be found.
Although potential still exists to locate a sizable porphyry target/s at Chapi Chapi, they are most likely to be
smaller, hypogene, potentially high grade sulfide targets and almost certainly will be concealed.
Chapi Chapi is a very large and voluminous mineral district, and without detailed 3D target models, it will
prove difficult to concentrate on areas of highest prospectivity for the discovery of blind porphyry “focii”
zones. An example of the drilling to date integrated with the magnetics and induced polarization data is
shown in Figures 16-5. Each datset shows a complex and differing view of the rock properties but all should
be integrated in interpreting possible bodies of mineralised rock. For example, the chargeability pattern
shows an arcuate pattern in section in the west, reminiscent of a “pyrite shell” in a classic porphyry
mineralisation model. However, the target geometries are likely to be more pipe-like and controlled by
structures as is inferred in the Utupara sector.
Going forward, further careful integration of the geophysics datasets with the geology and drillhole data will
be key to identifying hidden, but potentially important porphyry targets.
The following criteria should be combined in 3D space to identify possible porphyry “focii”:
1. Controlling structure/s active at the time of mineral emplacement (E-W and NE-SW);
2. Proximity to magnetic highs, which should map the quartz-magnetite stockworks in the central part of
a porphyry system;
3. High resistivity zones - potentially mapping silicification and stockworking;
4. Moderate (but not necessarily high) chargeability – potentially mapping copper sulphides>pyrite.
Clearly a detailed understanding of the geophysical characteristics of the various rock units will be very
important, in order to eliminate formational effects.
130
Figure 16-5: N-S Chargeability (top), Resistivity (middle) and Magnetic Susceptibility (bottom) sections with
the trace of drillholes CHA-11-006A, CHA-12-011 and CHA-11-008 projected
131
16.2.2. Skarn copper-gold
Exo- and endoskarn bodies developed around the contact of the intrusive rocks with the Ferrobamba
limestones represent high priority targets for higher grade copper-gold-molybdenum mineralization of
potential economic significance.
The Chapi Chapi Target in particular is a kilometric-scale structural contact that hosts a series of magnetite
skarn lenses several tens of meters wide cutting limestones along the western contact of a large intrusive
body, and a highly prospective target area for the development of high grade copper-gold-molbdenum
skarns at depth. Drilling to date has intersected copper and gold grades of potential economic interest, in the
order of 0.30-0.53% copper and 0.25-0.53 g/t gold over intervals of tens of meters. These intercepts would
appear to represent stratabound “manto” bodies of exoskarn within the limestone and also bodies of
exoskarn within the intrusive rocks themselves.
However the detailed geometry and grade distribution within the skarn bodies is still poorly known due to the
low density of drilling. Exoskarn bodies may interfinger with the complex intrusive contact, which itself
appears to be sill-like in nature at least in part. Exoskarn bodies occur in fact structurally beneath
outcropping intrusive rocks, as shown in the results of drillhole CHA-11-003 and inferred from the ground
magnetic data (Figure 8-8). This suggests that there may be further undiscovered zones of exoskarn yet to
be located by drilling. Therefore further followup drilling is warranted in the Chapi Chapi Target area to
provide a more definitive interpretation of the geometry of the known skarn bodies intersected around
drillhole CAH-11-003 and also to discover further undiscovered mineralized skarn bodies.
In addition there are other combined magnetic/chargeability targets around the intrusive-limestone contact
that lack drill exploration; for example along the eastern contact of the intrusive body appears to be very
prospective based on the geophysics. The large coincident magnetic/chargeabilty geophysical anomalies
located beneath outcropping Ferrobamba Formation limestones to the south and east of the Jacuire Target
require drill testing (refer to Figures 8-8 and 8-9).
16.2.3. Structurally-controlled gold hosted by quartzite
At the Huarajo Target, a kilometer-scale gold- and silver-in-soils geochemical anomaly lies entirely over
fractured and limonitized arenaceous and silty sedimentary rocks, which are cut by monzonite dykes and
sulfidic breccia zones. Alturas’s drilling there has demonstrated the existence of shallow-dipping stratabound
mineralized breccia zones, with potentially economic gold (0.12-0.67 g/t) and silver (0.35-3.5 g/t) grades
intersected over intervals of meters, to tens of meters. There is a broad correlation between the
mineralization and zones of high chargeability (and low resistivity?) in the clastic metasediments (see
Figures 16-6 and 16-7 below). The abundance of pyrite that is broadly associated with the gold-silver
mineralization probably accounts for this correlation and provides a broad tool for targeting mineralization of
this style.
Given the gold and silver grades intersected to date, a near-surface, bulk minerable, gold-silver resource
should initially be the target at Huarajo. However based on the very limited drilling data available, although
gold and silver anomalism are present over intervals of hundreds of meters, there are substantial waste
zones hosting very low metal grades between the potentially mineable mineralized zones. Therefore, bulk
mining of the known zones would probably be uneconomic at present metal prices. However, it is highly
possible that gold-silver grade and fracture/breccia density may increase towards localized feeder structures,
potentially upgrading the overall resource grade and making bulk mining possible.
Therefore a high priority must be placed on identifying the detailed structural and reheological controls on the
zones of high grade gold-silver mineralization – i.e. of both the mantos and their feeder structures. This
structural study should incorporate all of the existing geology, geochemical and geophysical datasets.
132
Figure 16-6: N-S Chargeability section through Huarajo with the traces of drillholes CHA-11-002 and CHA11-002A projected, plus gold as histograms.
Figure 16-7: N-S Resistivity section through Huarajo with the traces of drillholes CHA-11-002 and CHA-11002A projected, plus gold as histograms.
133
16.2.4. Volcanic-hosted high sulfidation epithermal gold
The adjacent Chama property demonstrates that high sulfidation gold mineralization is present in the district.
Within the Chapi Chapi Sector, indications of high level, high sulfidation alteration are present within the
Property at Cullimayoc and Chaica, albeit with weak values of gold recorded at surface in rock sampling. If
high sulfidation gold mineralization is present, it is likely to be concealed beneath the currently exposed high
level siliceous alteration and restricted to structural corridors.
In general, it is the author´s opinion that the size potential of these targets is relatively restricted. Therefore,
the target is considered to be of a low exploration priority. Targets of this style have not been investigated in
Alturas’s most recent drilling progam.
134
17. RECOMMENDATIONS
17.1.
Utupara Sector
17.1.1. Proposed work program
The main objective of future exploration at Utupara should be the further drill evaluation of the Cachorro
Zone porphyry / breccia copper-gold target. The proposed program consists of two or three diamond
drillholes directed into untested combined high chargeability / high resistivity targets around the Cachorro
Corridor. In addition a further two or three diamond drillholes should be directed at the other large untested
induced polarization targets that lie under thin cover. Total proposed meterage is approximately 1,000 to
1,500 meters in four to six drillholes.
The proposed program would not support a stand alone drilling campaign, but instead it would need to be
“dove-tailed” with any future drilling program in the adjacent Chapi Chapi Sector.
17.1.2. Proposed exploration budget
The proposed program would require a budget of between US$ 400,000 and US$ 600,000.
17.2.
Chapi Chapi Sector
17.2.1. Proposed work program
Although potential still exists to locate sizable porphyry, skarn and quartzite-hosted target/s in the Chapi
Chapi sector, they are most likely to be concealed hypogene sulfide targets. For this reason, further careful
3D integration of the geophysics datasets with the geology and existing drillhole data will be key to
identifying hidden, but potentially important targets within economic range of the surface. These targets
should be followed up with a number of exploratory scout drillholes at some stage in the future.
In addition, it is of utmost priority that further infill drilling needs to be focussed in the areas where potentially
economic mineralization has already been discovered, namely at the Chapi Chapi and Huarajo Targets, with
the aim of defining an inferred resource/s.
Therefore the main objectives of the next drill exploration phase in the Chapi Chapi sector should be:

Infill drilling of the Chapi Chapi Target hypogene skarn targets, in the area where promising
mineralization has already been intercepted (i.e. close to drillholes CHA-11-003, CHA-11-008 and
CHA-12-010). A program of 5,000 meters in 15 drillholes is proposed;

Infill drilling of the Huarajo gold-silver target, in the area where the best near-surface mineralization
has previously been intercepted (close to drillholes CHA-11-002 and CHA-11-002A). A program of
4,500 meters in 12 drillholes is proposed.
17.2.2. Proposed exploration budget
The proposed costing for the proposed work program is estimated to be as follows:

Chapi Chapi infill drilling: US$ 2,000,000

Huarajo infill drilling: US$ 1,800,000
Completion of a drilling program of this magnitude would be critical in both meeting the requirements of the
option agreement with IRL and also in defining a broad resource envelope upon which to base the required
economic scoping study.
135
18. SOURCES OF INFORMATION
PROJECT CODE
UTU-0001
UTU-0002
UTU-0003
UTU-0004
UTU-0005
UTU-0006
UTU-0007
UTU-0008
UTU-0009
UTU-0010
UTU-0011
UTU-0012
UTU-0013
UTU-0014
UTU-0015
UTU-0016
UTU-0017
UTU-0018
UTU-0019
UTU-0020
UTU-0021
UTU-0022
UTU-0023
COMPANY
Compañía Minera Milpo SA
ExploAndes SRL
ExploAndes SRL
ExploAndes SRL
Alturas Minerals SA
B & R Asociados
B & R Asociados
Co & Ambiental Ingenieros
MONTH
Enero
Febrero
Febrero
Mayo
Noviembre
Junio
Junio
Noviembre
Febrero
Febrero
Mayo
Mayo
Julio
Setiembre
Diciembre
Enero
Octubre
Noviembre
Noviembre
Diciembre
Setiembre
Octubre
Noviembre
UTU-0024
Alturas / Exploandes
Noviembre 2006 Anon.
UTU-0025
Horizons South America SAC
Enero
2007 Anon.
UTU-0026
UTU-0027
ExploAndes SRL
ExploAndes SRL
Abril
Mayo
2007 Merino Morante J.
2007 Merino Morante J.
UTU-0028
Alturas Minerals SA
Mayo
2007 Mamani M., Germán
UTU-0029
UTU-0030
UTU-0031
UTU-0032
UTU-0033
UTU-0034
UTU-0035
UTU-0036
UTU-0037
UTU-0038
UTU-0039
UTU-0040
UTU-0041
UTU-0042
UTU-0043
UTU-0044
UTU-0045
UTU-0046
UTU-0047
UTU-0048
UTU-0049
UTU-0050
UTU-0051
UTU-0052
UTU-0053
UTU-0054
UTU-0055
UTU-0056
UTU-0057
UTU-0058
UTU-0059
UTU-0060
B & R Asociados
Co & Ambiental Ingenieros
ExploAndes SRL
B & R Asociados
ExploAndes SRL
Alturas Minerals SA
ExploAndes SRL
B & R Asociados
ExploAndes SRL
ExploAndes SRL
B & R Asociados
ExploAndes SRL
ExploAndes SRL
Alturas Minerals SA
ExploAndes SRL
ExploAndes SRL
Alturas Minerals SA
ExploAndes SRL
ExploAndes SRL
ExploAndes SRL
Fugro Ground Geophysics
ExploAndes SRL
B & R Asociados
B & R Asociados
ExploAndes SRL
B & R Asociados
ExploAndes SRL
GEA-DES Ingenieros SAC
UTU-0061
UTU-0062
UTU-0063
UTU-0064
UTU-0065
UTU-0066
UTU-0067
UTU-0068
UTU-0069
UTU-0070
Alturas Minerals SA
Minera IRL
ExploAndes SRL
ExploAndes SRL
TerraGeo Exploraciones
Arce Geofisicos
YEAR
1997
1997
1997
1998
1998
1999
1999
1999
2000
2000
2000
2000
2000
2000
2000
2001
2004
2004
2004
2004
2006
2006
2006
AUTHOR/S
Cortavitarte L, J., Valencia H, L.
Ly Z, P., Cortavitarte L, J.,Valencia H, L.
Ly Z, P., Cortavitarte L, J.,Valencia H, L.
Cayetano R, V., Chahua P, J., Paricahua, C.
Ly Zevallos, P. - Cayetano Roldán, V.
Ly Z, P., Salazar A, Teófilo.
Anon.
José Arce - Geofísicos de Exploraciones
José Arce - Geofísicos de Exploraciones
Ly Z, P., Salazar A, Teófilo.
Ly Z, P.
Rivera C, S.
Val'Dor Geofísica (Perú) SA
Ly Z, P., Salazar A, Teófilo., Velez M, E.
Ocampo, J., Rios, R.
Ly Z, P., Salazar A, T., Guevara A, N.
J.Merino, A. Yucra
Merino Morante J.
Merino Morante J.
Pearson, P. - Díaz L.
Anon.
Anon.
Anon.
Mayo
Mayo
Junio
Junio
Junio
Junio
Agosto
Agosto
Agosto
Agosto
Setiembre
Setiembre
Octubre
Octubre
Noviembre
Diciembre
Diciembre
Diciembre
Enero
Febrero
Marzo
Marzo
Abril
Abril
Mayo
Mayo
Mayo
Mayo
Junio
Junio
Junio
Noviembre
2007
2007
2007
2007
2007
2007
2007
2007
2007
2007
2007
2007
2007
2007
2007
2007
2007
2007
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
Anon.
Anon.
Merino Morante J.
Anon.
Merino Morante J.
Aylas A., Co. & Ambiental Ingenieros
Merino Morante J.
Anon.
Anon.
Luis Alberto Sánchez Palomino
Jorge Merino
Anon.
Jorge Merino
Anon.
Jorge Merino
Jorge Merino
Anon.
Anon.
Jorge Merino
Jorge Merino
Anon.
Jorge Merino
Jorge Merino
Jorge Merino
Ignacio Merino
Jorge Merino
Anon.
Anon.
Jorge Merino
Anon.
Jorge Merino
GEA-DES Ingenieros SAC
Diciembre
2008 Alberto Bustamante
Enero
Diciembre
Junio
Diciembre
Diciembre
Febrero
Julio
Agosto
Octubre
2009
2005
2007
2008
2009
2010
2011
2011
2011
Anon.
A. Gonzales
G. Villón
Bertil Rodriguez
Jorge Merino
Jorge Merino
Jose Arce
Jorge Saez P.
Anon.
TITLE
Evaluación geológica de mina Utupara y alrededores
Evaluación geológica y muestreo mina Utupara y alrededores
Evaluación geológica y muestreo mina Utupara y alrededores
Informe sobre la visita de reconociminento al Prospecto Utupara
Proyecto Utupara - Informe Preliminar - Borrador
Evaluación geológica y muestreo geoquímico del Proyecto Utupara
Avance la exploración / Prospecto Utupara / Prospecto Chanape
Exploración geofísica de polarización inducida
Exploración geofísica de Utupara # 514-99
Geología y muestreo químico del Proyecto Utupara
Trabajos del mes de Abril - Proyecto Utupara
Informe del avance de los trabajos en el Proyecto Utupara
Geophysical report on induced polarization, DGPS and magnetic surveys
Geología, Geoquímica y Geofísica Proyecto Utupara
Evaluación de Utupara Cu / Au
Perforación de rotación inversa (RCD) Proyecto Utupara
Reporte Utupara
Reporte Utupara - Noviembre 2004
Anexos al Reporte Utupara - Noviembre 2004
Utupara Project - Apurimac Department - Southern Peru
Línea de Base Ambiental - Mapas y Anexos
Línea de Base Social
Declaración Jurada Categoría "B" - Proyecto Utupara
Manual de Campo sobre Medio Ambiente, Higiene, Seguridad y Código de
Conducta
Servicios de Agrimensura para Cartografía Digital por métodos
Aerofotogramétricos
Reporte cuarto mes de actividades
Reporte quinto mes de actividades
Expediente Técnico - construcción de pontones en el camino Huaquirca Finaya - Rumichaca
Informe del Segundo Monitoreo Participativo de Agua
Levantamiento a las Observaciones de la D.J. Categoría "B"
Reporte quinto mes de actividades - Segundo reporte
Construyendo un Soporte Social Sostenible
Memoria descriptiva - Area detallada del plano 1: 10,000
Levantamiento a las Observaciones de la D.J. Categoría "B" - 2007
Reporte octavo mes de actividades
Informe de Gestión Social y Ambiental
Encuesta de hogares (Resultados)
Informe de Investigación Arqueológica
Reporte Noveno mes de Actividades
Revisión del programa d eperforación (Ayuda memoria)
Reporte Decimo mes de Actividades
Programa Gestión Social Informe Setiembre-Octubre
Reporte undecimo mes de Actividades
Reporte duodécimo mes de Actividades
Construcción Reservorio Comunidad Finaya
Utupara Cachorro Target Plans Sections
Reporte Utupara
Reporte Utupara
Inventario de Pasivos Ambientales y Mapas
Reporte utupara
Reporte Anual 2007 Tomo I
Reporte Anual 2007 Anexo
Geophysics Report
Reporte utupara
Informe Monitoreo Ambientales Participativo Utupara-Chapi Chapi
Expediente Socio cultural de la licencia a legitimidad social
Reporte utupara
Informe de cierre de gestión ambiental
Reporte Utupara
Informe Monitoreo Calidad de Aguas
“Geocronología, Petrografía, Alteraciones e Isótopos de
Pb y Sr del Complejo Porfirítico (CuAu)
Utupara –
Aplicaciones a la Exploración Minera
AntabambaApurimacPerú”
RESUMEN DE TRABAJOS REALIZADOS EN EL AÑO 2007
Technical report. Antabamba gold exploration project.
Memoria descritiva del Area detallada plano 1:10,000
Reporte annual de exploraciones-2008
Proyecto Chapi Chapi Cerro Huarajo
Zona Oeste Chapi Chapi Cerro Coronto
Geophysical Surveys-Ground Magnetometry & Induced Polarization
Estudio al microscopio de 38 muestras del Proyecto Chapi Chapi
Evaluación zona de óxidos de Cu-area de Huarajo.
136
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Spanish
Spanish
Spanish
Spanish
Spanish
Spanish
Spanish
Spanish
Spanish
Spanish
Spanish
Spanish
Spanish
English
Spanish
Spanish
Spanish
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English
Spanish
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CERTIFICATE OF AUTHOR
I, Paul John Pearson, do hereby certify that:
1. THAT I am an exploration geologist with an office at 18 Wollemi Court, Reedy Creek,
QLD, Australia. 4227; Email: [email protected];
[email protected]
2. THAT this certificate pertains to the technical report “Technical report for the
UTUPARA-CHAPI CHAPI PROJECT, Apurimac Department, Southern Peru”,
effectively dated March 31, 2013;
3. THAT, I obtained a Bachelor of Science with First Class Honours degree in Geology in
1982 and a Doctor of Philosophy in Geology in 1989 from the University of Queensland,
Brisbane, Australia;
4. THAT, I am a Fellow of the Australasian Institute of Mining and Metallurgy (Member
No.220639) and have been continuously practicing my profession as an exploration
geologist (exploration for and development of mining properties) since 1982;
5. THAT I practiced and resided as an exploration geologist in Peru continuously between
1996 and 2010, and have maintained active ties with exploration activities there in the
years since, with two other exploration companies;
6. THAT, I have read the definition of “qualified person” set out in National Instrument 43101 (“NI 43-101”) and certify that by reason of my education, affiliation with a
professional association (as defined in NI 43-101) and past relevant work experience, I
fulfill the requirement of “qualified person” for purposes of NI 43-101. This summary
report is based on my personal review of information provided by the Issuer (and other
published and unpublished information), and on discussions with Issuer’s
representatives;
7. THAT, this report is based upon a review of proprietary, published and printed reports
and maps on the subject property and surrounding area and on various site visits made
th
th
th
th
on November 6-10 2007, February 18-25 2008, February 25-28 2010 and 12-15
May 2010;
8. That, as at the effective date of this summary report and certificate (March 31st, 2013)
to the best of my knowledge, information and belief, this summary report contains all of
the scientific and technical information that is required to be disclosed to make the
summary report not misleading;
9. THAT I am responsible for the preparation of all items in this report in its entirety;
10. THAT, in my current role as a director and former officer of the Issuer, I could not be
considered independent of the issuer as set out in Section 1.4 of the Canadian National
Instrument 43-101 “Standards of Disclosure for Mineral Projects”;
11. THAT in my prior role as an executive with the Issuer I have been involved with
exploration of the property between 2005 and 2010, and have conducted numerous site
visits to the same;
12. THAT, I have read National Instrument 43-101 “Standards of Disclosure for Mineral
Projects” and Form 43-101F1 and that this Summary Report has been prepared in
compliance with the foregoing Instrument and Form and therefore constitutes a
“Technical Report” as defined by the said documents;
13. As such, I consent to the filing of this Report with any stock exchange and other
regulatory authority and any publication by them, including electronic publication in the
public company files on their websites accessible to the public of the said Report.
___________________________
Signature of Qualified Person

Technical report for the UTUPARA-CHAPI CHAPI PROJECT

Transcription

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