Sheet1

EL BROCAL TAJO NORTE - Reserves 2005

Long Range (L-o-M)
all $US and Dry Basis
BASE DATA
PRODUCTION

Waste MT
36,109,062

HEAD GRADE

ZINC %
6.17

NET SMELTER RETURN

Escenario
&
EQUIVALENT ZINC CUTOFF GRADE CALCULATION
DIFFERENTIATED CONCENTRATES
Ore MT
S/R
8,967,733
4.03
OPERATING COST DATA

PROMEDIO
Update
By

4-Jan-06
David Mallqui

S/R

CONCENTRATE GRADES %
ZINC CONC
LEAD CONC

LEAD %
2.33

AG oz/mt
2.95

51.00
5.40

2.78
60.00

14.00
55.00

75.00
2.38

11.55
70.00

39.12
43.18
82.30

CU%
0.08

RECOVERIES %
ZINC CONC
LEAD CONC
DEDUCTIONS
ZINC
Deduction
PAYABLE %
MINIMUM % or opt

85.00
8.00

3.00
65.00

0.00
0.00

TREATMENT CHARGES
LEAD Base Charge $/mt
Escalator $/mt
Threshold Price $/mt
Penalty
$/MT
Transportation $/mt Conc.

LEAD
PAYABLE %
MINIMUM % or opt

0.00
0.00

MARKET PRICE
$/Tonne or $/oz
$/lb. Or $/0z.

$1,050
$0.48

NET SMELTER PRICE

ZINC CONC
CONC GRADE
DEDUCTION
% PAYABLE
Minimum Deduction
NET PAYABLE GRADE
MARKET PRICE
GROSS PAY'BLE/MT CONC
TREATMENT CHARGE $/DMT
PRICE PARTICIPATION
PENALTY SiO2
REGALIA 1%
REFINING
NET PAYABLE/DMT CONC
TRANSPORTATION
NET PAYABLE @ MINESITE
$/DMT CONC.
Recovery
Conc Grade
Head Grade
Concentration Ratio
$/Tonne Ore
$/lb. or $/oz. Metal in Ore
LEAD CONC
CONC GRADE
%PAYABLE
Minimum Deduction
NET PAYABLE GRADE
MARKET PRICE
GROSS PAY'BLE/MT CONC
TREATMENT CHARGE $/DMT
PRICE PARTICIPATION
PENALTY As
REGALIA 1%
REFINING
NET PAYABLE/DMT CONC
TRANSPORTATION
NET PAYABLE @ MINESITE
$/DMT CONC.
Recovery
Conc Grade
Head Grade
Concentration Ratio
$/Tonne Ore
$/lb. or $/oz. Metal in Ore

95.00
1.60

3.00

$550
$0.25

$5.25
$5.25

ZINC

LEAD

AG

opt

TOTAL

51.00

2.78

85.00
8.00
43.00
$0.48
$451.50
$152.33
$8.00
$1.50
$4.52

0.00
0.00
0.00
$0.25
$0.00
$0.00

$285.15
$32.31

$0.00
$0.00

$0.38
0
$24.50
$2.69

$252.84
75.00
51.00
6.17
11.0
$22.94
$0.17

$0.00
11.55
2.78
2.33
10.3
$0.00
$0.00

$21.81
39.12
14.00
2.95
12.1
$1.80
$0.61

$0.00

14.00
3.00
65.00

opt
55.00
95.00
1.60
52.25
$5.25
$274.31
$58.33

$0.00

60.00
95.00
3.00
57.00
$0.25
$313.50
$66.67
$0.00
$0.00
$3.14

$0.00
$0.00

$243.70
$18.67

$2.74
$18.29
$194.95
$16.33

$0.00
2.38
5.40
6.17
36.8
$0.00
$0.00

$225.03
70.00
60.00
2.33
36.8
$6.12
$0.12

$178.62
43.18
55.00
2.95
43.2
$4.14
$1.40

$309.65
$35.00
$274.65

$0.35

PLAN CATEGORIES
Mena
Marginal
Sub-Marginal

U.S.$
$20.74
$18.77
$18.77

EQZN

ORE CONTROL Cutoffs

Mine
Mill
Incremental

$15.69
$14.43
$7.91

5.63
5.18
3.55

$24.74

$587.81
$125.00
$0.00
$0.00
$5.88
$18.29
$438.65
$35.00

Notes

NSR Revised as per El Brocal 18/01/2005

Costs Revised as per El Brocal 18/01/2005
Prices revised as per Brocal 18/01/2005

$403.65

$10.25

TOTAL
$252.84
$22.94
$0.17

$225.03
$6.12
$0.12

EQUIVALENT ZINC CALCULATION

LEAD Net LEAD $/Tonne Ore
LEAD Head Grade
$ / % /Tonne
ZINC $/Tonne Ore
ZINC Head Grade
$ / % /Tonne
ZINC =

$6.12
2.33
$2.63
$22.94
6.17
$3.72
.7061 *LEAD (%)

SILVER Net SILVER $/Tonne Ore

SILVER Head Grade
$ / oz /Tonne
ZINC $/Tonne Ore
ZINC Head Grade
$ / % /Tonne
ZINC =

$5.93
2.95
$2.01
$22.94
6.17
$3.72
0.5411 *AG (opt)

$200.43
$5.93
$2.01

$678.29
$34.99

ZINC %
6.17

.
LEAD %
2.33

AG oz/mt
2.95

6.17

1.65

1.60

CUTOFF GRADE CALCULATION (EQZN)

MINE
$0.17
75.00
$2.17
$3.67
$1.10
$2.37
$0.86
$1.97
$0.00
$1.88
$1.67
$0.00

5.63
$15.69

MILL
INCREMENTAL
$0.17
$0.17
75.00
60.00
-15 % Estimate
$2.17
$2.17
$3.67
$3.67
$1.10
$1.10
$2.37
$0.86
$1.97
$0.00
$1.88
$1.88
$1.67
$0.00
-$1.25
-$1.25 Waste Mining Credit
$0.35 Rehandle
5.18
3.55
$14.43
$7.91
SUMMARY

Unitary Values
1% Zn =
1% Pb =
1 Oz Ag =

$3.718
$2.625
$2.012

\\vboxsrv\conversion_tmp\scratch_3\[153745056.xls.ms_office.xls]Sheet1

Example

EQZN %

COG %
VALUE

$2.17
$3.67
$1.10
$2.37
$0.86
$1.97
$0.00
$1.88
$1.67
$0.00
$20.74

$165.00
$0.16
$1,000.00
$0.18
$1,150.00
$1.50
$35.00

24-Jun-13

CUTOFF
Net ZINC Price $/lb.
Zinc Recovery %
Ore Mining Cost $/mt
Milling Cost
$/mt
Energy Cost
$/mt
Services
$/mt
Mine Admin.
$/mt
Deprec.
$/mt
Prov.
$/mt
Conc. Sales
$/mt
Lima Admin.
$/mt
Finance
$/mt

4.03

$35.00

ZINC Base Charge $/mt

1st Escalator/$ over threshold
1st Threshold Price $/mt
2nd Escalator/$ over threshold
2nd Threshold Price $/mt
Penalty
$/MT
Transportation $/mt Conc.

$489.04
$165.00
$8.00
$1.50
$4.89

$1.25

$125.00
$0.15
$525.00

SILVER REFINING CHARGE

$/oz payable

7.15
$5.25
$37.54
$12.67

5.40
0.00
0.00
0.00
$0.48
$0.00
$0.00

COMBINED ZINC & LEAD ORE

NET PAYABLE @ MINESITE
$/DMT CONC.
$/Tonne Ore
$/lb. or $/oz. Metal in Ore

95.00

FE %
MINING WASTE$/mt waste
10.80
MINING ORE $/mt ore
MILLING
$/mt ore
5.00 ENERGY
$/mt ore
6.00 SERVICES
$/mt ore
MINE ADMIN $/mt ore
DEPREC.
$/mt ore
5.00 PROV.
$/mt ore
6.00 CONC. SALES $/mt ore
LIMA ADMIN $/mt ore
FINANCE
$/mt ore
TOTAL
$/mt ore

EQZN Factors
Zn =
Zn =
Zn =

Page 1

1.0 *Zn%
0.7061 *Pb%
0.5411 *AgOz

Total

9.41