TresCruces 43-101 Report Sept28 - 2012 Final PDF

Lacroix & Associates
TECHNICAL REPORT ON THE TRES

CRUCES PROJECT, NORTH
CENTRAL PERU
PREPARED FOR NEW OROPERU
RESOURCES INC.
Report for NI 43-101
Author:
Peter A. Lacroix, P.Eng.
September 28, 2012

Lacroix & Associates Final
TABLE OF CONTENTS
PAGE
1 SUMMARY ................................................................................................................... 1
Executive Summary................................................................................................... 1
Technical Summary ................................................................................................... 4
2 INTRODUCTION .......................................................................................................... 8
3 RELIANCE ON OTHER EXPERTS ............................................................................ 11
4 PROPERTY DESCRIPTION AND LOCATION ........................................................... 12
5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND
PHYSIOGRAPHY ......................................................................................................... 17
6 HISTORY ................................................................................................................... 19
7 GEOLOGICAL SETTING AND MINERALIZATION .................................................... 21
Regional Geology .................................................................................................... 21
Local and Property Geology .................................................................................... 23
Mineralization .......................................................................................................... 26
8 DEPOSIT TYPES ....................................................................................................... 29
9 EXPLORATION .......................................................................................................... 31
10 DRILLING................................................................................................................. 35
11 SAMPLE PREPARATION, ANALYSES AND SECURITY ........................................ 37
12 DATA VERIFICATION .............................................................................................. 54
13 MINERAL PROCESSING AND METALLURGICAL TESTING.................................. 56
14 MINERAL RESOURCE ESTIMATES ....................................................................... 69
23 ADJACENT PROPERTIES ...................................................................................... 99
24 OTHER RELEVANT DATA AND INFORMATION .................................................. 100
25 INTERPRETATION AND CONCLUSIONS ............................................................. 101
26 RECOMMENDATIONS .......................................................................................... 103
27 REFERENCES ....................................................................................................... 104
DATE AND SIGNATURE PAGE.................................................................................. 106
CERTIFICATE OF QUALIFIED PERSON ................................................................... 107
APPENDIX 1 - PROBABILITY DISTRIBUTION PLOTS .............................................. 109
APPENDIX 2 - VARIOGRAM MODELS ...................................................................... 115
APPENDIX 3 - BLOCK MODEL CROSS SECTIONS .................................................. 121
New Oroperu Resources Inc. Tres Cruces Project

Technical Report NI 43-101 September 28, 2012 Page i
LIST OF TABLES
PAGE
Table 1-1 Mineral Resource Estimates .......................................................................... 7
Table 4-1 Tres Cruces Mineral Concessions ............................................................... 13
Table 10-1 Drilling Statistics ........................................................................................ 36
Table 11-1 2007 Lab Results, Standards .................................................................... 45
Table 11-2 BMC 1998/1999 Assay Statistics, Pulp Duplicates .................................... 46
Table 11-3 2002/2003 Re-Assay Program Results ...................................................... 47
Table 11-4 2007/2008 Field Duplicate Statistics .......................................................... 50
Table 14-1 Analytical Results, Independent Samples .................................................. 55
Table 13-1 Oxide Column Test Results, BMC ............................................................. 61
Table 13-2 Projected Metallurgical Performance, Barrick ............................................ 63
Table 13-3 Comparative Flotation/Cyanidation Tests, G&T ......................................... 65
Table 13-4 Variability Flotation/Cyanidation Tests, G&T .............................................. 67
Table 14-1 Mineral Resource Estimates ...................................................................... 71
Table 14-2 Mineral Resource Estimates, Au Cut-off Table .......................................... 72
Table 14-3 2008 Mineral Resource Estimate, Barrick .................................................. 74
Table 14-4 2008 Barrick Estimate, Au Cut-off Table .................................................... 75
Table 14-5 2008 Barrick Estimate, Au Cut-off Table .................................................... 76
Table 14-6 Holes Excluded from Database ................................................................. 78
Table 14-7 Zone Assay Statistics - Au ......................................................................... 78
Table 14-8 assay Stats within 0.2 g/t Envelope - Au .................................................... 79
Table 14-9 Lithology Model ......................................................................................... 80
Table 14-10 Alteration Model ...................................................................................... 81
Table 14-11 Interpolation Domains .............................................................................. 81
Table 14-12 Assay Capping Levels Au ..................................................................... 82
Table 14-13 Composite Statistics By Domain .............................................................. 83
Table 14-14 Composite Statistics By Zone .................................................................. 84
Table 14-15 Block Model dimensions & Extent ............................................................ 84
Table 14-16 Au Variogram Models .............................................................................. 85
Table 14-17 Density Measurements ............................................................................ 87
Table 14-18 Mineral Resources................................................................................... 88
Table 14-19 Measured Mineral Resources, Au Cut-off Table ...................................... 89
Table 14-20 Indicated Mineral Resources, Au Cut-off Table ........................................ 89
Table 14-21 Measured + Indicated Mineral Resources, Cut-off Table ......................... 90
Table 14-22 Inferred Mineral Resources, Au Cut-off Table .......................................... 90
Table 14-23 Measured/Indicated Mineral Resources Within Pit Shell .......................... 92
Table 14-24 Unconstrained Estimates, Indicated Mineral Resources .......................... 93
Table 14-25 unconstrained Estimates, Inferred Mineral Resources ............................. 93
Table 14-26 Combined unconstrained/constrained Estimates, Indicated Mineral
Resources ..................................................................................................................... 95
Table 14-27 Combined unconstrained/constrained Estimates, Inferred Mineral
Resources ..................................................................................................................... 95
Table 14-28 Au Point Validation, SZ (5) Composites ................................................... 96
Table 14-29 Au Point Validation, SZ (5), Regression Analysis .................................... 97
Table 14-30 Analysis of Drill Spacing .......................................................................... 98

Technical Report NI 43-101 September 28, 2012 Page ii
LIST OF FIGURES
PAGE
Figure 4-1 Location Map - Peru ................................................................................... 14
Figure 4-2 Location Map La Libertad Departament................................................... 15
Figure 4-3 Concession and Property Map ................................................................... 16
Figure 7-1 Regional Geology ....................................................................................... 22
Figure 7-2 Drill Hole Locations and Property Geology ................................................. 25
Figure 11-1 DDH Core recovery .................................................................................. 41
Figure 11-2 BMC 1998/1999 Pulp Duplicates .............................................................. 47
Figure 11-3 2002/2003 RC re-Analyses ...................................................................... 48
Figure 11-4 2002/2003 Core re-Analyses .................................................................... 48
Figure 11-5 2006/2007 RC Field Duplicates ................................................................ 49
Figure 11-6 2006/2007 Core Field Duplicates ............................................................. 49
Figure 11-7 2007/2008 RC Field Duplicates ................................................................ 51
Figure 11-8 2007/2008 Core Field Duplicates ............................................................. 51
Figure 13-1 PRA Test Work, Au Recovery .................................................................. 58
Figure 13-2 Bio-Oxidation Column Tests, BMC ........................................................... 59
Figure 13-3 Bio-Oxidation Shaker Tests, BMC ............................................................ 60
Figure 13-4 Au R vs. Depth, CIL Leach Tests, McClelland .......................................... 64
Figure 13-5 Au R vs. S, CIL Leach Tests, McClelland ................................................. 64
Figure 13-6 Au R vs. Mass Pull, Flotation/CIL Tests, G&T .......................................... 68

Technical Report NI 43-101 September 28, 2012 Page iii
1 SUMMARY
EXECUTIVE SUMMARY
INTRODUCTION
Lacroix & Associates (L&A) was retained by New Oroperu Resources Inc. (Oroperu), to
prepare an independent Technical Report on the Tres Cruces Project (the Project),
located in north central Peru about 100 km east of the city of Trujillo. The purpose of this
report is to provide an update on mineral resource estimates for the Project. This
Technical Report conforms to NI 43-101 Standards of Disclosure for Mineral Projects.
L&A visited the property in May, 2011. There has been no further exploration or drilling
activity on the Project since 2008.
Oroperu holds a 100% interest in the Tres Cruces Mineral concessions through its
wholly-owned subsidiary, Aurifera Tres Cruces S.A (Aurifera). The Project is in the
advanced stage of exploration and delineation, with over 370 reverse circulation (RC)
and diamond core holes drilled to date. Barrick Gold Corporation, through its Peruvian
operating subsidiary, Minera Barrick Misquichilca S.A. (Barrick), is currently advancing
the project under the terms of an option agreement with Oroperu in which Barrick can
acquire up to 70% of Aurifera by making a production decision. All exploration
expenditures deemed necessary by Barrick to make a production decision will be paid by
Barrick at no cost to the Oroperu. Following a production decision, Oroperu would retain
a 30% fully financed interest in Aurifera, a 2% royalty interest and receive a
US$1,000,000 advance royalty payment.
Currently, there are no major assets or facilities associated with the Project other than
the drill roads and pads and the deposit itself. The Project has all-weather access to
Trujillo, some 100 km to the west on the Pacific coast, as well as being interconnected
by gravel road to Barricks Lagunas Norte operation, some 10 km to the north. Barrick
invested an estimated $340 million in the development of Lagunas Norte deposit where
production started in June 2005. The Lagunas Norte project has reportedly produced an
average of one million oz of gold per year since commencement of production.
L&A has had no prior involvement in the Project.

Technical Report NI 43-101 September 28, 2012 Page 1
CONCLUSIONS
The mineral resource estimates for Oroperus Tres Cruces Project were updated by L&A
in February 2011. The resource estimate includes data from about 20 additional drill
holes completed since the unpublished 2008 estimate by Barrick. The following
interpretations and conclusions are made by L&A regarding the estimates:
Measured plus Indicated mineral resources are estimated to contain 66.0 million
tonnes grading 1.23 g/t Au for a total of 2.6 million oz of contained Au metal.
Inferred mineral resources are estimated at 19.6 million tonnes grading 0.97 g/t
Au or 0.6 million contained oz Au. These estimates are reported at a 0.6 g/t Au
cut-off, which is considered appropriate for the deposit at current long-term
average metal prices.
CIM definitions were followed for the classification of mineral resources. The
estimate is based on the assay results from 359 drill holes. The average
distance from a block classified as indicated to the 4 closest holes is 45m. For
inferred, the average distance to the closest 2 or more holes used to estimate the
grades is 69 m. The Cardoso Zone is the least densely drilled and contains only
inferred mineral resources. Those mineral resources classified as indicated are
located within the core of the drilling, while the inferred mineral resources are
located along the periphery and at depth where spacing is insufficient to include
in higher-confidence categories.
Additional potential exists to increase the size of the resource through further
drilling. In particular, there are very few holes that have been drilled sufficiently
deep to assess the true potential at depth, including the possibility for higher-
grade bonanza-style mineralization.
The estimated Au grades compare well with the average assay and composite
grades observed in statistical analyses of data. As well, estimates are close to
those produced by Barrick in terms of total Au metal, although grades are lower
and the model contains higher tonnage and metal content at lower cut-offs and
lower tonnage and metal content at higher cut-offs than the Barrick estimate.
This is largely due to the differences in methodology. Barrick used larger
composites, fewer drill holes, and inverse distance weighting (cubed) to estimate
the grades in their model.
In order to satisfy the requirements of NI 43-101 that a resource has reasonable

prospects of economic extraction, L&A evaluated the resource using pit
optimization software. At the 0.6 g/t Au cut-off grade, the difference between the
indicated mineral resource Au metal content in the optimized pit shell and that
contained within the full resource is less than 4%, which is not considered
material. On the basis of these findings it is concluded that there is little merit in
restricting the reported mineral resources to those contained only within the pit
shell at this time although this issue will have to be revisited once more definitive
cost and performance parameters have been developed. Accordingly, the
mineral resource inventory has been reported in its entirety.

No estimate has been made by L&A for Ag although significant potential for value
exists at current Ag prices. The model supplied by Barrick also did not contain
an estimate for Ag. There is not a very good correlation between Ag and Au but
the average Ag to Au ratio of is approximately 3:1 based on over 43,200 intervals
assayed for both metals. For Au values above 0.6 g/t Au, the ratio is
approximately 2:1.
While metallurgical testing is by no means definitive at this point and requires

further work, a baseline recovery of about 85% of the contained Au has been
established for oxide mineralization while testing has indicated that plus 80%
recoveries are possible for sulphide components of the mineralization, producing
concentrates of sufficiently low mass and high grade to allow shipping of the
concentrates offsite for treatment.
Au recoveries do not necessarily depend on sulphur content. Those samples

with both high Au recovery and S content are primarily derived from shallower
depths while those with lower recoveries are from deeper intervals. It is probable
that in those samples exhibiting higher recoveries, some or potentially all of the
sulphur occurs in sulfate minerals (oxide state) versus sulphides. Those samples
from the upper reaches of the deposit that have very low sulphur content may
have been completely leached of sulphur following oxidation or gold deports as
free grains.
Given the size of the Tres Cruces resource, the best option may be to construct a
facility at or near Tres Cruces and Lagunas Norte that would allow oxidative pre-
treatment of flotation concentrates, eliminating the costly option of shipping
concentrates.
RECOMMENDATIONS
The following recommendations are made by L&A:
Given the potential economic contribution from Ag recovered in the metallurgical

processes, future mineral resource estimates should include Ag. This may
require additional assaying as not all sampled intervals contain a value for Ag.
Efforts should be directed toward developing a more cohesive model for the
distribution of sulphide mineralization within the deposit. From a metallurgical
perspective, sulphide mineralization is currently defined as that material with a S
content greater or equal to 2.5% although it has been indicated that not all S is in
the form of sulphides.
Ongoing metallurgical investigations should include review of onsite options for

oxidative pre-treatment of flotation concentrates.
Further effort should be directed toward exploring the potential for higher-grade
mineralization at depth as well as delineating the full extent of known
mineralization.

TECHNICAL SUMMARY
PROPERTY DESCRIPTION AND LOCATION
The Tres Cruces Project is located in north central Peru about 100 km east of the city of
Trujillo, a major city located 574 km north of Lima. The Tres Cruces property
encompasses 30 km2 located in the eastern part of the Western Cordilleran of North
Central Peru. The Tres Cruces property consists of four mineral concessions totaling
3,000 ha. The concessions are located within the Department of La Libertad and within
Peruvian National Topographic System (NTS) map area Santiago de Chuco number
17G. The Tres Cruces concession are centred at approximately 78 16' west latitude
and 08 02' south longitude.
LAND TENURE
wholly owned subsidiary Aurifera Tres Cruces S.A (Aurifera). To maintain the
concessions in good standing, annual payments of US$ 3 per ha or US$ 9,000 in total
must be made to the Peruvian government. In order to conduct detailed-exploration
work, permits must be obtained from the Peruvian Ministry of Mines. It is not necessary
to obtain permits for basic exploration, like mapping and sampling. Companies are also
required to submit a report on annual exploration expenditures to the Peruvian Ministry
of Mines. The concessions are in good standing until December 30th 2013. The mineral
concessions are not subject to any royalties, back-in payments or other agreements
except the Tres Cruces 1, which has a 2% royalty, capped at $1,250,000. There are
no known environmental liabilities within the property limits.
SITE INFRASTRUCTURE
There is currently no infrastructure located on the Tres Cruces property other than drill
roads and pads. All exploration and development activity on the property is facilitated by
existing infrastructure and services located at the Lagunas Norte operation as well as by
employees and contractors from elsewhere in Peru and world wide. Manpower,
equipment and supplies are currently transported to Lagunas Norte by way of the road
from Trujillo, which saw substantial upgrading in 2004.

HISTORY
Compaa Minera Quiruvilca started mining the high-grade Pb-Zn-Ag veins at Quiruvilca
during the 1920s. The mine has been in production ever since and was acquired by
Pan American Silver in 1995. In 1996 Oroperu acquired the key concessions in the area
and entered into a 50-50 joint venture with Pan American on a combined land package,
including adjoining ground held by Pan American that covered portions of the Tres
Cruces deposit. Assets for the joint venture were held by Aurifera Tres Cruces S.A.
(Aurifera). Several drill campaigns were conducted by Oroperu in 1996 and 1997 and
later by Battle Mountain Canada Ltd. (BMC) in 1998 and 1999. BMC withdrew from the
project in 1999.
In May 2002, Oroperu secured an option to acquire Pan Americans 50% interest in
Aurifera Tres Cruces S.A. (Aurifera), which owns the Tres Cruces Project, to increase its
interest to 100%, subject to work expenditures, royalty and back in provisions. Later that
month, Oroperu entered into an agreement with Barrick to further development in the
project. In September 2003, the agreement with Barrick was finalized and a definitive
option agreement was signed. In October 2003, Oroperu revised their agreement Pan
American regarding their interest in the Project, effectively acquiring 100% of Aurifera
through issuance of Oroperu shares and granting a 1.5% NSR royalty to Pan American.
The Barrick exploration program began with geological mapping, re-logging of existing
drill core, IP and gravity geophysical studies. Barrick drilled 11 diamond core holes in
2002 and 9 diamond core holes in each of the subsequent years. No further drilling was
undertaken until 2006, when 29 additional diamond core holes were completed. In
2007, Barrick drilled 44 diamond core holes and 86 RC holes. In 2008, Barrick drilled 7
diamond core holes and 6 RC holes and completed a mineral resource estimate for the
deposit.
GEOLOGY
The Tres Cruces property is located within a NW-SE trending belt of Eocene Pliocene
age rocks called the Calipuy Volcanics. This volcanic belt trends from central Peru to
the Cajamarca region located in Northern Peru. The Calipuy Volcanic belt hosts world-
class deposits like Newmont/Buenaventuras Yanacocha Mine and Barricks Pierina
Mine. The Tres Cruces property is considered to be part of the Quiruvilca Mining

District. Cretaceous sedimentary rocks belonging to the Goyllarisquizga Group and

andesitic volcanic rocks belong to the Tertiary Calipuy Formation underlie the district.
The sedimentary rocks show a strong degree of deformation resulting from early Tertiary
SW-NE compression. This was later followed by E-W extension allowing loci of volcanic
activity to develop. The Quiruvilca District is host to several types of deposits all
classified as epithermal type. The mineralization at the Quiruvilca Mine is interpreted to
be a high sulphidation type related to a deep seated porphyry system. Barricks Laguna
Norte located 10 km north of Tres Cruces is classified as a high sulphidation system.
The Tres Cruces deposit, located four km southeast of Quiruvilca, is considered to be of
the low sulphidation type and is 9 million years younger. Tres Cruces and the veins at
Quiruvilca are not considered to be related.
MINERAL RESOURCES
in February 2011. Table 1-1 set out the quantities and grades for the measured,
indicated and inferred classifications as estimated by L&A. The tabulations exclude that
portion of Tres Cruces owned by Barrick. The estimates for Tres Cruces are based on a
three-dimensional (3D) block model with grades estimated using Ordinary Kriging (OK).
L&A did not produce an estimate for Ag although, given current Ag prices, future models
should include Ag.
Only those blocks above 0.6 g/t Au are reported in Table 14-1 although the cut-off
should be revisited once more site-specific cost and revenue data is available. The
estimate is based on the assay results from 359 drill holes. The average distance from a
block classified as indicated to the 4 closest holes is 45m. For inferred, the average
distance to the closest 2 or more holes used to estimate the grades is 69 m. The
Cardoso Zone is the least densely drilled and contains only inferred mineral resources.
Those mineral resources classified as indicated are located within the core of the drilling,
while the inferred mineral resources are located along the periphery and at depth where
spacing is insufficient to include in higher-confidence categories.

TABLE 1-1 MINERAL RESOURCE ESTIMATES

Measured plus Indicated

Zone (Code) Kt g/t Au Koz Au
North Zone (1) 8,744 1.08 304
South Zone (5) 20,525 1.29 850
SW Zone (6) 17,849 1.30 746
S Ext. Zone (3) 18,910 1.16 708
Cardoso (4) - - -
Totals 66,029 1.23 2,608
Inferred
North Zone (1) 646 0.74 15
South Zone (5) 10,149 0.98 319
SW Zone (6) 2,324 0.83 62
S Ext. Zone (3) 4,123 1.07 142
Cardoso (4) 2,310 0.98 73
Totals 19,552 0.97 611
Notes:
1. CIM definitions were followed for Mineral Resources.
2. Mineral Resources are reported at a cut-off grade of 0.6 g/t Au.
3. Mineral Resources are estimated using an average gold price of US$1,500 per ounce and
metallurgical recovery of 82% of the contained gold..
4. Excludes Barrick claims.
5. Totals may not agree due to rounding.

2 INTRODUCTION
Lacroix & Associates (L&A) was retained by K. Wayne Livingstone, President of New
Oroperu Resources Inc. (Oroperu), to prepare an independent Technical Report on the
Tres Cruces Project (the Project), located in north central Peru about 100 km east of the
city of Trujillo. The purpose of this report is to provide an update on mineral resource
estimates for the Project. This Technical Report conforms to NI 43-101 Standards of
Disclosure for Mineral Projects. L&A visited the property in May, 2011. There has been
no exploration or drilling activity on the Project since 2008.
wholly-owned subsidiary, Aurifera Tres Cruces S.A (Aurifera). The Project is in the
advanced stage of exploration and delineation, with over 370 reverse circulation (RC)
and diamond core holes drilled to date. Barrick Gold Corporation, through its Peruvian
operating subsidiary, Minera Barrick Misquichilca S.A. (Barrick), is currently advancing
the project under the terms of an option agreement with Oroperu in which Barrick can
acquire up to 70% of Aurifera by making a production decision. All exploration
expenditures deemed necessary by Barrick to make a production decision will be paid by
Barrick at no cost to the Oroperu. Following a production decision, Oroperu would retain
a 30% fully financed interest in Aurifera, a 2% royalty interest and receive a US$
1,000,000 advance royalty payment.
Currently, there are no major assets and facilities associated with the Project other than
the drill roads and pads and the deposit itself. The Project has all-weather access to
Trujillo, some 100 km to the west on the Pacific coast, as well as being interconnected
by gravel road to Barricks Lagunas Norte operation, some 10 km to the north. Barrick
invested an estimated $340 million in the development of Lagunas Norte deposit where
production started in June 2005. The Lagunas Norte project has reportedly produced an
average of one million oz of gold per year since commencement of production.
L&A has had no prior involvement in the Project.

SOURCES OF INFORMATION
A site visit and detailed examination of the property was carried out by Peter A. Lacroix,
P. Eng. of L&A on May 11, 2011. Discussions were held in Barricks offices at the
Lagunas Norte Mine and Barricks office in Lima with Walter Macedo, Senior Exploration
Geologist, Nicholas Teasdale, Business Development Manager and various employees
and contractors of Barrick during the week of the visit. Mr. Macedo accompanied the
author during the site visit. L&A gratefully acknowledges their assistance in this effort.
During the site visit and subsequent discussions in Lima, sufficient opportunity was
available to examine logging and sample preparation procedures, data acquisition,
quality assurance and control measures, and data verification, to and inspect diamond
drill core from the 2006 and 2007 drilling programs, as well as to obtain a general
overview of the property, including selected drill sites. Several representative samples of
split core from Tres Cruces drilling were taken by Mr. Lacroix from the storage facility at
Lagunas Norte and assayed in LIma. L&A would also like to thank Wayne Livingstone,
President of Oroperu, who provided invaluable assistance to L&A in procuring
information essential to the report and hosting Mr. Lacroix during his visit to Lima.
Based on the review of the site and available data, L&A is of the opinion that the
programs have been conducted in a professional manner and the quality of the data and
information produced meets or exceeds acceptable industry standards. It is believed
that, for the most part, the work has been directed or supervised by individuals who
would fit the definition of a Qualified Person in their particular areas of responsibility as
set out by NI 43-101.
The mineral resource estimates and information contained in this report are based on
data and reports provided by Barrick and Oroperu. Much of the data, including the drill
assay and geological database, upon which the estimates are based, has undergone
thorough scrutiny by project staff as well as certain data verification procedures by the
author.
Much of the background information for this report, including land tenure, geological
descriptions and interpretations, was derived from a previous NI 43-101 report prepared
for Oroperu (Reeder, McCrea, 2002). The documentation reviewed, and other sources
of information, are listed at the end of this report in Section 21, References.

LIST OF ABBREVIATIONS
Units of measurement used in this report conform to the SI (metric) system. All currency
in this report is US dollars (US$) unless otherwise noted.
micron kPa kilopascal

C degree Celsius kVA kilovolt-amperes
F degree Fahrenheit kW kilowatt
g microgram kWh kilowatt-hour
A ampere L liter
a annum L/s litres per second
bbl barrels m metre
Btu British thermal units M mega (million)
2
C$ Canadian dollars m square metre
3
cal calorie m cubic metre
cfm cubic feet per minute min minute
cm centimeter MASL metres above sea level
2
cm square centimetre mm millimetre
d day mph miles per hour
dia. diameter MVA megavolt-amperes
dmt dry metric tonne MW megawatt
dwt dead-weight ton MWh megawatt-hour
3
ft foot m /h cubic metres per hour
ft/s foot per second opt, oz/st ounce per short ton
2
ft square foot oz Troy ounce (31.1035g)
3
ft cubic foot oz/dmt ounce per dry metric tonne
g gram ppm part per million
G giga (billion) psia pound per square inch absolute
Gal Imperial gallon psig pound per square inch gauge
g/L gram per litre RL relative elevation
g/t gram per tonne s second
gpm Imperial gallons per minute st short ton
3
gr/ft grain per cubic foot stpa short ton per year
3
gr/m grain per cubic metre stpd short ton per day
hr hour t metric tonne
ha hectare tpa metric tonne per year
hp horsepower tpd metric tonne per day
in inch US$ United States dollar
2
in square inch USg United States gallon
J joule USgpm US gallon per minute
k kilo (thousand) V volt
kcal kilocalorie W watt
kg kilogram wmt wet metric tonne
3
km kilometre yd cubic yard
km/h kilometre per hour yr year
2
km square kilometre

3 RELIANCE ON OTHER EXPERTS

This report has been prepared by Lacroix & Associates (L&A) for New Oroperu
Resources Inc. (Oroperu). The information, conclusions, opinions, and estimates
contained herein are based on:
Information available to L&A at the time of preparation of this report,

Assumptions, conditions, and qualifications as set forth in this report, and
Data, reports, and opinions supplied by Oroperu and other third party sources.
For the purpose of this report, L&A has relied on ownership information and title opinion
provided by Oroperu and their Peruvian legal counsel, Estudio Grau Abogados. L&A
has not researched property title or mineral rights for the Tres Cruces property (the
Project) and expresses no opinion as to the ownership status of the property.
L&A has relied on Oroperu for guidance on applicable taxes, royalties, and other
government levies or interests, applicable to revenue or income from the Project.
Except for the purposes legislated under provincial securities laws, any use of this report
by any third party is at that partys sole risk.

4 PROPERTY DESCRIPTION AND LOCATION

The Tres Cruces Project is located in north central Peru about 100 km east of the city of
Trujillo, a major city located 574 km north of Lima. The Tres Cruces property
encompasses 30 km2 located in the eastern part of the Western Cordilleran of North
Central Peru (Figure 4-1 and Figure 4-2). The Tres Cruces property consists of four
mineral concessions totaling 3,000 ha (Figure 4-3). The concessions are located within
the Department of La Libertad and within Peruvian National Topographic System (NTS)
map area Santiago de Chuco number 17G. The centre of the Tres Cruces concession is
approximately 78 16' west latitude and 08 02' south longitude. Table 1 lists the
concessions and their size and entry codes.
LAND TENURE
wholly owned subsidiary Aurifera Tres Cruces S.A (Aurifera). Table 4-1 provides a list of
the concessions. To maintain the concessions in good standing, annual payments of
US$ 3 per ha or US$ 9,000 in total must be made to the Peruvian government. In order
to conduct detailed-exploration work, such as roadwork and drilling, permits must be
obtained from the Peruvian Ministry of Mines. It is not necessary to obtain permits for
basic exploration, like mapping and sampling. Companies are also required to submit a
report on annual exploration expenditures to the Peruvian Ministry of Mines. The
concessions are in good standing until December 30th 2013. The mineral concessions
are not subject to any royalties, back-in payments or other agreements except the Tres
Cruces 1, which has a 2% royalty, capped at $1,250,000. There are no known
environmental liabilities within the property limits.

TABLE 4-1 TRES CRUCES MINERAL CONCESSIONS

Name Entry Code Hectares

Negro 1 01-02046-93 800
Negro Dos 01-01886-97 300
Negro 3 01-03234-94 900
Tres Cruces 1 01-02450-93 1000
Totals 3,000
In September 2003, Oroperu entered into an option agreement with Barrick Gold
Corporations operating Peruvian subsidiary, Minera Barrick Misquichilca S.A. (Barrick)
in which Barrick has an option to acquire up to 70% interest in Aurifera. The Tres
Cruces project is currently being advanced by Barrick under the terms this agreement.
In order to maintain its option on the Tres Cruces property, Barrick is required to make
annual payments of US$ 250,000 to Oroperu each May until a production decision is
made by Barrick. The option agreement expires on December 31, 2020 if no production
decision is made. The annual payment is subject to a Peruvian withholding tax.
All exploration expenditures deemed necessary by Barrick to make a production decision

will be paid by Barrick at no cost to the Oroperu. Barrick is also required to maintain the
concessions in good standing, including all property payments, permits, and reporting
requirements. Following a production decision, Oroperu would retain a 30% fully
financed interest in Aurifera, a 2% royalty interest and receive a US$ 1,000,000 advance
royalty payment. The property is also subject to a 2% NSR royalty held by the Peruvian
government and a 1.5% NSR royalty held by Pan American Silver. In May 2011 Barrick
paid Oroperu the US$ 250,000 (US$ 175,000 net of withholding tax) payment required to
maintain its option on the Tres Cruces property for the next year.

FIGURE 4-1 LOCATION MAP - PERU

FIGURE 4-2 LOCATION MAP LA LIBERTAD DEPARTAMENT

FIGURE 4-3 CONCESSION AND PROPERTY MAP

5 ACCESSIBILITY, CLIMATE, LOCAL

RESOURCES, INFRASTRUCTURE AND
PHYSIOGRAPHY
ACCESSIBILITY
The Tres Cruces Property is accessible by road. The property can be accessed by
paved and gravel road from Trujillo, located 574 kilometres north of Lima. From Trujillo,
the property is located approximately 100 kilometres east. The trip from Trujillo to the
property takes approximately 5 hours. The main road accessing the project from Trujillo
was upgraded in 2004 during the construction phase of Barricks Lagunas Norte project.
There is also an airstrip at Barricks Lagunas Norte operation which is approximately 10
km to the north.
CLIMATE
Within the region of the Tres Cruces Concession, annual temperatures range from
greater than 25C to less than -10C, with periods of extreme precipitation. The rainy
season in this part of the Andes is from December to April. Dense fog is common during
the rainy season.
LOCAL RESOURCES
The property is located 4 km southeast of the Quiruvilca Mine owned by Pan American
Silver Corporation (Pan American) and 10 km south of Barricks Lagunas Norte
operation, which produced 763,000 oz Au in 2011. Barrick maintains a large work force
at Lagunas Norte and has access to those resources necessary to construct and
operate a mine at Tres Cruces if a positive production decision is made by Barrick.
Limited supplies and accommodations are also available in the town of Quiruvilca and
Shorey. Power and water is available in the area.
INFRASTRUCTURE
There is currently no infrastructure located on the Tres Cruces property other than drill
roads and pads. All exploration and development activity on the property is facilitated by
existing infrastructure and services located at the Lagunas Norte operation as well as by

employees and contractors from elsewhere in Peru and world wide. It is anticipated that
Tres Cruces would utilize infrastructure and equipment already in place at Lagunas
Norte although additional infrastructure would have to be built, including process
facilities. Manpower, equipment and supplies are currently transported to Lagunas Norte
by way of the road from Trujillo, which saw substantial upgrading in 2004 and is
maintained for current usage.
PHYSIOGRAPHY
The Tres Cruces Property is located between 3900 and 4200 m above sea level. The
terrain contains moderate relief. The slopes in the Tres Cruces area are typically
covered with small brush and grasses. At lower elevations (<3700 meters) there is
abundant agricultural activity typical of the Andes.

6 HISTORY
Compaa Minera Quiruvilca started mining the high-grade Pb-Zn-Ag veins at Quiruvilca
during the 1920s. The mine has been in production ever since and was acquired by
Pan American Silver in 1995. During the 1990s, Perus new mining laws attracted
several international mining companies to the area. Yanacocha, Latin Americas largest
gold mine, commenced commercial operation in the early 90s and is now producing
over 1.5 million ounces of gold annually. In 1998 Barrick reached commercial production
at Pierina producing approximately 900,000 ounces annually. Both the Yanacocha and
Pierina mines are hosted in the highly prospective Calipuy Volcanics.
In June 1995, Oroperu visited the Tres Cruces area located 4 kilometres to the
southwest of the Quiruvilca Mine. Encouraged by the positive surface results from the
North Zone, a follow up program consisting of detailed sampling and mapping was
completed. By October of 1996 Oroperu acquired the key concessions in the area and
entered into a 50-50 joint venture with Pan American on a combined land package,
including adjoining ground held by Pan American that covered portions of the Tres
Cruces deposit. Assets for the joint venture were held by Aurifera Tres Cruces S.A.
(Aurifera). Initial drilling, in December 1996, returned significant gold intercepts in four
drill holes. Several drill campaigns by Oroperu and later by Battle Mountain Canada Ltd.
(BMC) in 1998 and 1999 outlined a mineral resource of 34.5 Mt grading 1.40 g/t Au
containing 1.6 million oz Au using a 0.75 g/t Au cut-off (Cooper, 1999). This resource
was classified as indicated however it is now considered historic. BMC withdrew from
the project in 1999.
In April of 2002, Barrick announced a major discovery north of Tres Cruces called the
Lagunas Norte (Alta Chicama project). At that time it was estimated to contain a total
resource of 7.3 million oz Au. (News Release, Barrick, July 10, 2002). The main road
accessing the project from Trujillo was upgraded in 2004 during the construction phase
of the Lagunas Norte mine. Lagunas Norte is Barricks lowest cost operation and in
2011, the mine produced 763,000 oz Au at total cash costs of $169 per oz Au. Proven
and probable Au reserves as of December 31, 2010 were 6.6 million ounces (Barrick
website, November, 2011).

In May 2002, Oroperu secured an option to acquire Pan Americans 50% interest in
Aurifera Tres Cruces S.A. (Aurifera), which owns the Tres Cruces Project, to increase its
interest to 100%, subject to work expenditures, royalty and back in provisions. Later that
month, Oroperu entered into an agreement with Barrick to further development in the
project. In September 2003, the agreement with Barrick was finalized and a definitive
option agreement was signed.
In October 2003, Oroperu revised their agreement Pan American regarding their interest
in the Project, effectively acquiring 100% of Aurifera through issuance of Oroperu shares
and granting a 1.5% NSR royalty to Pan American. Oroperu, through Aurifera, received
an initial US $400,000 payment from Barrick and further payments of US $200,000 on
May 31, 2004 and 2005, and of US $250,000 per year thereafter. All exploration
expenditures are payable by Barrick until a production decision is made. Following a
production decision, Aurifera would retain a 30% fully financed interest; receive a
$1,000,000 advance royalty payment, and a 3.5% NSR royalty (from which the Pan
American 1.5% NSR would be paid).
The Barrick exploration program began with geological mapping, re-logging of existing
drill core, IP and gravity geophysical studies. Barrick drilled 11 diamond core holes in
2002 and 9 diamond core holes in each of the subsequent years. No further drilling was
undertaken until 2006, when 29 additional diamond core holes were completed. In
2007, Barrick drilled 44 diamond core holes and 86 RC holes. In 2008, Barrick drilled 7
diamond core holes and 6 RC holes and completed a mineral resource estimate for the
deposit.

7 GEOLOGICAL SETTING AND

MINERALIZATION
REGIONAL GEOLOGY
The Tres Cruces property is located within a NW-SE trending belt of Eocene Pliocene
age rocks called the Calipuy Volcanics. This volcanic belt trends from central Peru to
the Cajamarca region located in Northern Peru. The Calipuy Volcanic belt hosts world-
class deposits like Newmont/Buenaventuras Yanacocha Mine and Barricks Pierina
Mine. The Tres Cruces property is considered to be part of the Quiruvilca Mining
District. Cretaceous sedimentary rocks belonging to the Goyllarisquizga Group and
andesitic volcanic rocks belong to the Tertiary Calipuy Formation underlie the district.
The sedimentary rocks show a strong degree of deformation resulting from early Tertiary
SW-NE compression. This was later followed by E-W extension allowing loci of volcanic
activity to develop. Bartos (1987) interprets the geological environment of the Quiruvilca
area as the central facies of an andesitic stratovolcanco. Bartos based this on the
presence of numerous dykes and stocks and more importantly the radial orientation of
flows, flow breccias and tuffs. Bartos also observed that the flows dip away from the
central zones. However Heyl and Livingstone (1998) interpret the Tres Cruces area to
be a large, calc-alkaline composite volcanic dome complex which accumulated over a
basement of Mesozoic sedimentary rocks.
The Quiruvilca District is host to several types of deposits all classified as epithermal
type (Figure 7-1). The mineralization at the Quiruvilca Mine is interpreted to be a high
sulphidation type related to a deep seated porphyry system. Barricks Laguna Norte
located 10 km north of Tres Cruces is classified as a high sulphidation system. Lyons
(1999) notes that the Tres Cruces deposit, located four km southeast of Quiruvilca, is of
the low sulphidation type and is 9 million years younger. Lyons (1999) also suggests
that Tres Cruces and the veins at Quiruvilca are not related.

FIGURE 7-1 REGIONAL GEOLOGY

LOCAL AND PROPERTY GEOLOGY

The Tres Cruces Deposit is classified as a low sulphidation epithermal gold deposit.
Mainly quartzites and siltstones belonging to the Cretaceous age Chimu Formation are
interpreted to underlie the property. Unconformably overlying these sediments is a thick
package of andesitic pyroclastics belonging to the Miocene age Calipuy Formation
(Figure 3). Lyons (1999) has dated the age of this pyroclastic package to be
approximately 31.1 million years.
Mapping by BMC identified three andesite plugs in the area. They are located in the
Castillo Zone immediately northeast of the project area, the Pampa Baja Zone southeast
of the mineralized zones, and the Central Core Zone below the mineralization. Further
mapping south of the mineralized zones identified a breccia pipe with dimensions of 500
X 800 meters. Interestingly this breccia contains over 50% Chimu Quartzite fragments.
Most of the sedimentary fragments within the breccia are derived from the basement
rocks underlying the Calipuy volcanics. This was confirmed by further drilling in the
Cuevas Zone, which intersected a volcanic horizon with reworked quartzite fragments
overlying the older andesitic volcanics. The probable source of the fragments is
diatreme ejecta (BMC, 1999).
After the emplacement of the andesitic domes and plugs, a period of significant erosion
followed. Rhyolitic and dacitic rocks were later intruded along the pre-existing volcanic
contacts. Also felsic tuff/flows related to this event partially capped the underlying
andesitic volcanics. Heyl and Livingstone (1998) describe the felsic volcanics as fine
grained with fine quartz phenocrysts and polylithic fragments. They also note that
rhyolites are often silicified by opaline and chalcedonic silica. In the South Zone, this
forms a silica cap over the mineralization.
The domal structures with a combination of the paleosurface and other volcanic horizons
resulted in the formation of an oval shaped basin in the middle of the property. Sinter
deposits composed of limestones and silica interlayers were formed in the basin as a
result of the mixing of fresh surfical and bicarbonate rich hot spring solutions venting into
the shallow lake (Heyl and Livingstone, 1999). Further mapping by BMC (1999) place
the silicified conglomerates at Cerro Colorado in a fluvio-lacustrine environment
concurrent with the sedimentary rocks deposited in the basin.

Lyons (1999) later shows basaltic andesite flows dated at 22.2 Ma and an andesite plug
at Cerro Negro (17.5 Ma) overlie and intrude the above described units. These units are
classified as post- mineral.
Figure 7-2 shows drill hole locations and property geology for the Tres Cruces Project.

FIGURE 7-2 DRILL HOLE LOCATIONS AND PROPERTY GEOLOGY

MINERALIZATION
The Tres Cruces deposit has both an oxide and hypogene zone. The oxide zone is
mainly limited to the rhyolite. The underlying andesitic rocks show weak oxidization due
to the abundance of clay minerals causing poor permeability (BMC, 1999). Alteration is
predictably zoned with illite, buddingtonite, and quartz at the core, grading downward
and laterally to illite-smectite and laterally to propylitic alteration. The rhyolite units
contain strong silicification but also contain kaolinite and alunite, typical of the oxide
zone (BMC, 1999).
The dominant sulphide mineral is pyrite. Accessory sulphide minerals consist of

marcasite, arsenopyrite, stibnite, orpiment, realgar, and galena. Pyrite occurs in veinlets
and fractures but also as rims on earlier pyrite forming a colloform-banded texture (BMC,
1999). This late stage pyrite is directly associated with the main-stage gold event.
The Tres Cruces deposit contains both oxide and sulphide mineralization. Gold
mineralization is mainly hosted in the older andesitic porphyry and pyroclastic rocks.
The rhyolites also host mineralization but only near or along the andesite rhyolite
contact. All the mineralization is oxide along this contact. Tres Cruces contains five
distinct gold zones: South Zone, Southwest Zone, North Zone, South Extension Zone,
and the Cardoso Zone. The relationship between the zones is still unclear, as more
drilling is required.
SOUTH ZONE
The South Zone is the largest of the five zones at Tres Cruces. Rhyolitic rocks cover the
deposit on surface. Surficial gold values in the rhyolite unit are low but the rhyolite is
anomalous for mercury, arsenic and antimony. Gold mineralization occurs in a 60 to 100
meter wide zone adjacent to the contacts with a dacite porphyry and andesitic
pyroclastic rocks (BMC, 1999). The gold zone trends north-south and dips steeply to the
east. Vertically the zone occurs between 60 and 300 meter depths. Sub-vertical
mineralized breccia bodies with basement fragments are present in this part of the
deposit.

Alteration in the mineralized area is predominantly illite-buddingtonite in the South Zone.

Minor silicification occurs throughout but appears to be more intense in hydrothermal
breccia zones. Sulphide veinlets are common in this zone and are not restricted to one
rock type. Gold mineralization is directly related to late stage vuggy pyrite (BMC, 1999).
It has been observed, (Livingstone, 2002, personal comm.) that free gold exists in the
quartz pyrite veinlets at depth in the center of the South Zone. This is in evidence from
two deep drill holes in the center of the Zone. The geometry of the 250 ppb gold halo
indicates that the gold mineralization is open at depth.
SOUTHWEST ZONE
The Southwest Zone is a tabular zone of oxide and sulphide mineralization occurring at
the rhyolite-andesite contact. Overlying the western half of the deposit is the unaltered
sedimentary rocks deposited in the shallow basin environment mentioned earlier.
Rhyolite in this zone is silicified and contains minor alunite at its base, next to the gold
mineralization in the underlying andesitic rocks. The dimensions of the zone measure
approximately 250 x 250 x 15 meters. The rhyolite-hosted gold is entirely oxidized
whereas the andesite-hosted mineralization occurs with pyrite stockwork. Oxide
mineralization is characterized by strong iron oxides after pyrite and moderate to intense
fracturing. A layer of semi-massive sulphides occurs at the oxide-sulphide contact.
BMC (1999) notes that the gold grade does not correlate with silicification or the sulphide
contact and the sulphide contact appears to be supergene in origin.
NORTH ZONE
Mineralization in the North Zone is hosted in andesitic volcaniclastics and hydrothermal

breccias. This zone shows stronger silicification than any other zone. Quartz and
buddingtonite with peripheral kaolinite dominate surface alteration. Gold mineralization
is quite strong at the surface and is evidenced by the small historic workings.
Gold mineralization is limited to approximately 100 to 120 meters below the surface.
Mineralization in the North Zone is also hosted in a hydrothermal breccia that measures
approximately 100 meters in diameter and in andesitic volcaniclastic rocks and dacite

porphyry dykes. Mapping by BMC (1999) suggests that the breccia developed at the
intersection of a N70E structural zone with a dacite porphyry and andesitic volcaniclastic.
SOUTH EXTENSION ZONE
The South Extension Zone is similar to the South Zone. Rhyolites are exposed in the
northern part of this zone and appear to overlie the mineralization. The rhyolites are in
places 80 meters thick. Gold mineralization appears to be controlled by the contact
between the porphyries and andesitic volcaniclastics and the rhyolite and andesite
contact. Similar to the South Zone, the gold mineralization in the rhyolite is oxidized.
BMC (1999) suggests that the main difference from the South Zone is that gold
mineralization in the South Extension Zone does not have the same continuity down dip
or along strike. Also other structural controls may exist since the mineralization does not
follow the contact between the porphyry and volcaniclastics closely.
CARDOSO ZONE
The Cardoso Zone is hosted in andesite volcaniclastics and rhyolite. Mineralization is

structurally controlled by N70E and 70SE structures. On surface these structures
contain in excess of 10 g/t Au. However drilling in this zone has shown poor continuity.

8 DEPOSIT TYPES
The Tres Cruces is an epithermal gold deposit of the low sulphidation type. Lindgren
(1933) classified a number of precious metal, base metal, mercury, and stibnite deposits
as epithermal deposits. He also suggests that these deposits are formed by the
discharge of hydrothermal fluids from magmatic sources at low temperatures (< 200C).
Sillitoe (1987) states that it is now generally accepted that precious metal deposits
forming from meteoric waters with temperatures between 200 to 300C are classified as
epithermal deposits.
White and Hedenquist (1990) note that epithermal deposits are found in a variety of
geological environments where the types of epithermal deposits depend on various
combinations of igneous, tectonic and structural settings. Most epithermal districts
world-wide occur in younger Tertiary age volcanic rocks associated, on a continental
scale, with subduction zones at plate boundaries. Sillitoe (1987) notes that older
epithermal deposits are less common probably because many have been destroyed by
erosion and/or overprinted by metamorphism.
It is also generally accepted that epithermal deposits are classified as either adularia
sericite type (low sulphidation) or acid sulphate type (high sulphidation). Sillitoe (1987)
further describes the differences between the two:
The two types of deposits appear to form under similar pressure-temperature conditions
but in different geological and geochemical environments in ancient geothermal systems.
The acid-sulfate type deposit forms in roots zones of volcanic domes from acid waters that
contain residual magmatic volatiles. The adularia-sericite type deposit forms in a
geothermal system where surficial waters mix with deeper, heated saline waters in a
lateral flow regime, high above and probably offset from a heat source at depth; neutral to
weakly acidic, alkali chloride waters are dominant.
Since the early 1980s, there have been several new discoveries in the Pacific Rim
Basin, which have significantly increased the number of deposits. Also during the 90s
many junior and major mining companies concentrated their exploration budgets,
exploring younger volcanic rocks along the Pacific Rim. Notable successes include

Barricks Pierina and Alto Chicama acid-sulfate or high sulphidation deposit types.
Meridian Golds El Peon Mine located in Chile is an adularia -sericite type deposit. This
was a grassroots discovery and now is considered one of the worlds most profitable
mines.
The deposit is also considered to have intermediate-sulphidation characteristics. There

is alteration of the high-sulphidation type but this alteration consists mainly of vuggy
silica and silicification which mainly overlies mineralized zones. As such the high
sulphidation altered rocks do not host a significant portion of the mineralization. Further,
it is believed that mineralization hosted in these rocks overprints the previous alteration
assemblage.
The absence of banded and veined mineralization and of adularia type alteration
suggests that this may not be a low-sulphidation deposit, but the possible existence at
greater depth for low-sulphidation style mineralization is not discounted but this has not
been tested to date. A favourable host rock with potential for structural control like the
Chimu Group sandstones would form a good target. The presence of high mercury
content at relative depth also suggests that there may be further underlying potential as
mercury normally occurs in the upper portions of hydrothermal systems.

9 EXPLORATION
OROPERU/AURIFERA (1996 1998)
The initial exploration program, in 1996, consisted of geologic mapping and rock
geochemical sampling (Heyl et al, 1998). Oroperu collected a total of 515 rock
geochemical samples in 1996. Alteration mineral assemblages of these samples were
evaluated using a portable short wave infrared (SWIR) spectrometer. An area of strong
illite and weak alunite alteration was identified and followed up by drilling four reverse
circulation (RC) drill holes in December 1996. Also in 1996 Oroperu collected 188 soil
geochemical samples from a 100 m by 200 m to 200 m by 400 m soil grid. In 1997,
Oroperu drilled an additional 46 RC and 11 diamond core holes. Oroperu also collected
another 229 rock geochemical samples in 1997.
Exploration to the end of 1997 outlined a large mineralized system in three zones: the
North, South, and Southwest zones, with an estimated mineral resource of 30 Mt grading
2.0 g/t Au, estimate, containing 1.9 Moz Au (Heyl et al, 1998; BMC, 1999). This estimate
is considered historic. The resource was defined by 13,580 m of RC and diamond core
drilling from 61 holes. An induced polarization (IP) survey was conducted over much of
the Tres Cruces property in June of 1998. In total, 89 line km of induced polarization
and resistivity surveys were completed. During the same survey, 12 km of
magnetometer surveys and 8 km of TDEM were also completed. Results were reported
in November of 1998.
GOLD FIELDS LTD. (1998)
Gold Fields Ltd. collected 102 rock geochemical samples and 350 MMI (Mobile Metal
Ions) geochemical samples from Tres Cruces in 1998. Further information about this
exploration program was unavailable for L&A to review.
BMC (1998 TO 1999)

BMC optioned the Tres Cruces property in November 1998. They completed three drill
programs from November 1998 to September 1999 for a total of 21,017 m. The 1998
twin drilling confirmed the Au mineralization in the North, South and Southwest zones.
BMC collected 51 rock chip samples in 1998 and 158 rock chip samples in 1999. The

1999 diamond core drilling placed constraints on the gold mineralization in the South
zone, resulted in better control and understanding of the North Zone, and provided better
definition of the mineralization in the Southwest Zone. The results from this program
also lead to the discovery of the South Extension Zone. The drilling in the Pampa Baja
and Cuevas areas was unsuccessful in identifying any new mineralization. The RC
drilling program tested targets away from the known mineralization. For the most part,
the program was unsuccessful in identifying new mineralization although there were
significant intercepts in the Cardoso area and the mineralization was extended to the
north of the North Zone as a result of holes drilled there. Alteration and the silica cap
were intersected south of the Southwest and South Extension Zones, however no
significant mineralization was intercepted.
A soil sampling program, consisting of 1,383 C-horizon samples, was also conducted.
The samples were collected using hand augers capable of reaching two m depths and
were located using an established UTM grid. BMC collected 376 3-m channel samples
from the North Zone. The channel sample locations were determined using Brunton
compasses and chains from GPS located UTM grid co-ordinates.
In 1999, 182 line km of ground magnetometer survey were completed. Magnetic results
showed strong responses associated with post-mineral volcanics such as those at Cerro
Negro. Large variations in susceptibility produce a signature with strong highs and lows.
Volcaniclastic rocks exhibited a more moderate signature, however responses were
somewhat erratic due to variations in contained clasts. The porphyry signature was low.
The signature of all altered rocks, including volcaniclastics was low. BMC concluded
that the magnetic data are useful for mapping structure, but not the
porphyry/volcaniclastic contact (BMC, 1999).
In 1999, BMC also conducted IP modeling to determine which array was best suited for
mapping applications at Tres Cruces and in May 1999: 54 core samples of various
lithologies were analyzed for chargeability and resistivity. The results indicated that the
silica cap was 2 orders of magnitude more resistive than the other rocks but not
chargeable. BMC concluded that a contrast of 3:1 between porphyry and volcaniclastic
resistivity exists, which is insufficient to produce a mapable signature at depth. The 3:1
contrast is maintained through alteration; however the contrast between altered and
unaltered rocks was approximately 8: 1, which is mapable. The work also showed that

chargeability signatures, although generally higher in the porphyry, would similarly not be
mapable at depth. In June of 1999 a proposal was made to attempt mapping of
alteration around the porphyry/volcaniclastic contact under the silica cap, however this
work was not performed because contemporary drill results showed that the contact was
actually more complex than originally anticipated. BMC completed its exploration
programs at Tres Cruces in September 1999.
BARRICK
2002-2003
Initial work by Barrick comprised geological mapping, re-logging of existing drill core, IP
and gravity geophysical studies and the drilling of 14 diamond core holes for a total of
4,029 m. Barrick also drilled six diamond core holes adjacent to the east boundary of
Oroperus concessions on Barrick land. Excluding these holes, the total drilling on the
project at the end of 2003 was 38,662 m.
Barricks main thrust for this phase of work was to evaluate lateral extensions of known
mineralization as defined by prior drilling and IP targets immediately outside the known
resource to the west and to a lesser degree, the east, with limited success. This left the
southwest extension of the mineralization open towards Cerro Colorado. Barrick hole
DTC202 intersected 186 metres of 1.20 g/t Au on the east margin of the south zone
deposit. The waste boundaries in these areas had been generally defined by prior
drilling.
2004
In 2004, Barrick drilled five wide-spaced exploration diamond core holes southeast of the
main resources without encountering significant mineralization. An additional four
diamond core holes were drilled within the boundaries of known mineralization. In total,
nine holes totaling 1,836 m were completed during 2004.
2006
Barrick drilled 29 diamond core holes on the Tres Cruces deposit in 2006, totaling 5,508
m. Five of these holes were drilled on Barricks concession, which hosts a portion of the
North Zone mineralization. Several areas of mineralization that were open were
explored further by Barricks drilling and encountered additional mineralization. The area
adjacent to and between the South Zone, Southwest Zone and the SW Extension Zone

is covered with shallow sediments and chalcedonic sinter which overly the mineralized
Calipuy volcanics. This area has not been well explored in the past. The 2006 drilling
partially tested this area. Overall, the drilling did not completely delimit the mineralization
and additional drilling was planned for 2007. Metallurgical samples were collected from
a number of the holes drilled later in the year. These were taken from the remaining split
left after sampling for assay purposes.
2007-2008
In 2007, Barrick drilled 44 diamond core and 86 RC holes for a total of 24,462 m. One of
the diamond core holes 12 of the RC holes were drilled on Barricks concession in the
North Zone. The 2007 program was focused primarily on upgrading the confidence of
the known resource through infill drilling. Included in the totals are 27 RC condemnation
holes at the edges of known mineralization, twinning of three diamond core holes with
RC drilling, 13 RC piezometer hole, and seven diamond core holes for geotechnical
purposes. Samples were also collected from the mineralized intervals of a number of
the core holes for metallurgical testing. Generally these were taken from the remaining
split after samples were collected for assay purposes. Three RC holes and three
diamond core holes were drilled in 2008. Two of the core holes and two of the RC holes
were on Barricks concession. The core holes were used for geotechnical purposes.
The only other field activity reported by Barrick for 2007/2008 was an IP survey which
was undertaken to assist in the planning for exploration and condemnation drilling.
Because much of the mineralization is associated with disseminated and stockwork
pyrite, chargeability is an important indicator of potential mineralization. Resistivity may
be an indicator of silicification which is also strongly associated with mineralization.
Resistivity can also be associated with underlying sandstones (a potential structural trap
for mineralization) or with fresh or unaltered volcanic rocks (Barrick, 2007).

10 DRILLING
A summary of drilling statistics for Tres Cruces is provided in Table 10-1 while Figure 7-2
shows drill hole locations. The data in Table 10-1 are based on the collar and assay
files provided to L&A by Barrick. Quantities differ slightly from those mentioned in the
various reports reviewed by L&A. Exploration results for the drilling are discussed in
Section 10 while equipment and sampling procedures can be found in Section 12.
Oroperu drilled the first four RC holes at Tres Cruces in December of 1996. All four
holes intersected significant gold mineralization. In 1997, Oroperu drilled 46 additional
RC holes and 11 diamond core holes (DDH) for a total of 61 by the end of 1997.
BMC started their first drill program on November 1998. By the end of year, BMC
completed 3057 m of drilling in 11 diamond core holes. The objective of the first phase
was to confirm Oroperus results by twinning 10 of their drill holes. The second phase of
drilling started in January 1999. By the end of June 1999, 69 diamond drill holes had
been completed for a total of 14,637 m. Expansion and better definition of the known
mineralization as well as finding new mineralization were the objective of this phase of
drilling. 26 RC holes were completed from July to September, 1999 for a total of 3,323
metres. Testing geological geochemical and geophysical targets was the objective of
the RC program. The results of the three drill programs including drilling statistics are
summarized in Table 6.
From 2002 to 2008, Barrick drilled 109 diamond core holes and 93 RC holes for a total of
39,638 m. Drilling has substantially delineated the five known zones at Tres Cruces,
although further drilling is required to fully delineate the resources. Barrick produced an
estimate for mineral resources in 2008 based on drill data to the end of 2007. The
estimate is discussed further in Section 17.

TABLE 10-1 DRILLING STATISTICS

Diamond Core
#
#
Year By DH ID Length (m) purpose Type
samples
s
DTC-53,54+RTC-
1997 Oroperu 11 2,106.75 1,320 Exploration RC/DC
051 to 061
1998 BMC 11 DTC-062 to 072 3,057.40 2,023 Twins DC
1999 BMC 69 DTC-073 to 141 14,636.60 9,445 Expl/Infill DC
2002 Barrick 11 DTC-200 to 210 3,458.10 2,256 Exploration DC
2003 Barrick 9 DTC-211 to 219 1,668.70 977 Exploration DC
2004 Barrick 9 DTC-220 to 228 1,836.00 557 Exploration DC
2006 Barrick 29 DTC-229 to 257 5,508.10 3,657 Exploration DC
2007 Barrick 37 DTC-258 to 294 5,772.95 3,835 Infill DC
2007 Barrick 7 TCG-01 to 07 1,385.20 915 Geotechnical DC

TWDTC-
2008 Barrick 4 740.00 #N/A Twins DC
203,206,208,213
2008 Barrick 3 TCE-01 to 03 700.00 #N/A Geotechnical DC
Total DC 200 40,869.80 24,985 DC
Reverse
Circulation
#
#
Year By DH ID Length (m) purpose Type
samples
s
1996 Oroperu 4 RTC-001 to 004 811.15 537 Exploraton RC
1997 Oroperu 46 RTC-005-to 050 10,135.00 6,753 Expl/Infill RC
1999 BMC 28 RTC-142 to 166 3,322.50 2,037 Expl/Infill RC
2007 Barrick 70 RTC-200 to 269 14,217.00 14,210 Infill RC
2007 Barrick 14 TCP-01 to 13 2,740.00 2,740 Piezometers RC

TWINTC-
2007 Barrick 3 547.00 542 Twins RC
266,278,288
2008 Barrick 3 TCP-14 to 16 600.00 600 Piezometers RC
2008 Barrick 3 RTC-270 to 272 465.00 465 Exploration RC

Total RC 171 32,837.65 27,884 RC
Total
371 73,707.45 52,869 DC+RC
DC+RC

11 SAMPLE PREPARATION, ANALYSES AND

SECURITY
SAMPLING METHOD AND APPROACH
The Tres Cruces Project has seen exploration activity since 1995. Data available for
mineral resource estimation includes samples from 173 reverse circulation (RC) holes
and 185 diamond core holes. Minimal Information regarding the sampling method and
approach for pre-2002 drilling was available for L&A to review. Some detail is provided
in Coopers 1999 report on resource modeling (Cooper, 1999), Reeder and McCreas
2002 report on Tres Cruces (Reeder, McCrea, 2002), and Smee and Associates
Consulting Inc.s 2008 report (Smee, 2008). Smee audited quality control methods,
data, field measurements and sampling protocol in 2008. Further effort should be made
to document the work performed during this period and assess those factors that may
materially impact on the accuracy and reliability of the data.
There was no active drilling program under way at the time of L&As visit to the Project
site in May 2011. Consequently, discussions of sampling methods and approach
contained in this report are based on descriptions from Project staff and their consultant,
Smee and Associates Consulting Ltd. (Smee, March 2008).
Drilling on Tres Cruces is spread out over an area of 3,000 m (north-south) by 2,400 m
(east-west), with the density of drilling increasing in the area of the five zones identified
to date. Most holes are drilled at 70 degrees dip or steeper although a few are drilled as
shallow as 45 degrees. Holes range in length from 27 m to 394 m with the majority
between 100 m and 300 m. For the most part, mineralization at Tres Cruces forms sub-
horizontal lenses paralleling the flat-lying volcanics. While drilling programs have been
designed to intersect the mineralization at near right angles where possible, most
intersections will be larger than true width. Since the bulk of the mineralization consists
of wide, deep disseminated masses, the importance of true-width calculations is
somewhat negated.
The most common sample interval for diamond drilling is 1.5 metres, although shorter
and longer intervals exist, primarily reflecting changes in lithology and mineralization.
The variation in sample length is particularly high in the first 25 holes (DTC-200 to 224)

drilled when Barrick took over the project in 2002. Barrick subsequently reverted to a 1.5
metre sample length for the remainder of the diamond holes. For RC drilling, the sample
length is 1.5 metres for the pre-2002 drilling (Oroperu, Battle Mountain) and one metre
for 2002 onward (Barrick).
DIAMOND CORE DRILLING

No mention of core size was found for the Oroperu diamond drilling. BMC drilled core
holes using HQ (63.5 mm diameter) equipment, reducing to NQ (47.67 mm diameter)
when ground conditions prevented hole completion with HQ. Besides geological
logging, data collected included core recovery, magnetic susceptibility, rock quality
designation (RQD), PIMA (portable infrared mineral analyzer) readings, and specific
gravity. All of the core was photographed. At least three downhole surveys were taken
for each hole, usually at the top, middle and bottom of the hole (BMC, 1999).
According to Smee (Smee, 2008), the pre-2002 core was stored in wooden boxes under
cover in a compound in Shorey, a community about 40 minutes drive from Barricks
Lagunas Norte operation. This core was moved to Barricks compound at Lagunas
Norte in 2008, subsequent to Smees visit. Each box is labelled with the drill hole name
and from-to and contains meterage blocking and sample interval tags. The core has
recently been sorted and catalogued by Barrick and the logging checked and/or re-
logged. Smee concludes that the pre-2002 drill core has been catalogued properly, is
stacked in order, and is in good condition with the exception of the sample number tags
on the 1999 drill holes. The sampling intervals, when found, were in the correct
meterage positions. The geological logging is somewhat different to that used by
Barrick, but is considered to be acceptable by the Barrick geologists. (Smee, 2008). All
of BMCs core has been sawn, with the exception of silica rock, which has been split
(BMC, 2009). L& A has not seen the pre-2002 core.
During 2007, diamond drilling was done with a standard wire-line skid-mounted LF-70
Longyear rig using HQ rods down to a depth of about 450 meters or if ground conditions
dictated, smaller NQ rods. It is believed that similar equipment and rod sizes were used
in earlier Barrick drilling however no detail has been provided to L&A in this regard.
The Barrick core is stored mostly under cover in a compound at the Lagunas Norte mine.
The following is paraphrased from Smees report (Smee, 2008): The core from the field

is received in a sorting facility at the storage yard. Initially the core was put in wood
boxes with lids, but after 2002, metal trays were used. During transport from the field,
the trays were covered with lids, which were subsequently removed, leaving the core
uncovered from that point onward. At this time the core trays are numbered with the drill
hole number, the box number and the from-to and core recovery estimated using the
drillers blocks and core measurement. A quick log is done by the logging geologist in
paper form. Core is next subjected to density measurements and photography. The tray
is completely submerged in water and corrections made for bubbling (porosity). The wet
core is then photographed. It is then marked for sampling by the geologists and taken to
the cutting shed where it is cut with a diamond saw. The cutter and geologist work
together in this effort. One-half is place in the sample bag and the remainder returned to
the tray. Sample bags are pre-numbered with sample tickets already attached to the
bag. QC positions (blanks, standards) are pre-determined from a template. The trays
are then taken to a shed where the half core is logged.
Smee had several reservations regarding the method used for density measurements.
Firstly, the accepted method is to coat the sample in wax and immerse in water
according to ASTM standards. This preserves the inherent porosity in the sample.
Secondly, the sample is analyzed after immersion, which can result in loss of fine
materials, which may or may not contain gold. Thirdly, since the entire tray is immersed,
the measurement may not be lithology specific. Smee compared 51 measurements of
core by wax coating and water immersion with the MDT measurements and concluded
that while there is less than one percent difference overall, considerable scatter exists
within the paired data. Smee recommends that a selection of samples representing
each lithology be submitted for standard wax coating/water immersion measurements.
L&A notes that the MDT measurements may actually provide a better assessment of
bulk density (excepting porosity) since sample disturbance is minimal and the method
provides a rapid means of providing density measurements for a large component of the
drilled rock mass. The most obvious problem with any density determinations is the
correct assignment to the various lithologies within the deposit.
REVERSE CIRCULATION DRILLING

No details for the Oroperu phase of RC drilling were available for L&A to review although
it is understood that equipment and procedure were similar to those used by BMC. BMC
used a truck- and/or track-mounted drill with a center-return hammer. Samples were

collected in 1.5 meter intervals by a geo-technician and two helpers. A Gilson splitter
was used for all samples and was continually adjusted to yield 5 to 8 kg of sample.
Percent recovery, water produced, drilling rate, sample color, and basic lithology data
were collected for each interval. Small samples were collected from each interval for
logging (BMC, 1999).
The following description pertains specifically to the 2007 RC drilling program

undertaken by Barrick. No information is available regarding equipment used in other
campaigns however the 2007 drilling represents a large component of the overall
meterage. In 2007, RC drilling was accomplished using a W-750 Prospector drill
manufactured by Foremost Industries in Canada. Face-sampling center-return hammers
were used exclusively, which ensures high quality samples and high advance rates. As
well, the inner tube is of large bore diameter, minimizing backpressure and maximizing
return of fines. All sampling was supervised by personnel contracted by Barrick.
For dry drilling, a pre-labelled microporous sample bag was attached to the cyclone of
the RC rig and supported from beneath. The cyclone valve was used to control sample
discharge in the appropriate interval, which was one metre for 2007. Samples were
taken in their entirety back to Lagunas Norte, where a Gilson splitter (#SP-1) was used
to reduce the sample weight down to about 8 kg from 35 kg. This involved two
consecutive passes through the splitter. On each pass, the reject was returned to the
original field sample bag and the remaining sample homogenized before the next split.
The splitter was cleaned with compressed air after each sample. Smee noted that
during his observation of splitting procedures the splitting area was not enclosed and
considerable dust was generated. For wet drilling, a hydraulic splitter was attached
below the cyclone and sampled material discharged into two clean buckets, each
representing a full split of the drilled interval. The sample was collected from the buckets
once it has had time to settle. The halves were bagged separately, using the second
bag as a field duplicate when necessary. The labelled bags were then shipped back to
Lagunas Norte for further processing. Buckets were washed between sample intervals
and the cyclone/splitter assembly washed every six meters. No description of logging
procedures for RC drilling was available for L&A to review.

DRILLING RECOVERY
No drilling recovery data for pre-2006 drilling was available for L&A to review. DDH core
recovery for the 2006 and 2007 programs (73 holes, 5658 intervals) was very good, with
the first 50 to 75 metres generally lower, likely a result of weathering/oxidation. Overall
recovery was calculated at 96% based on measurements taken by project geologists.
Figure 11-1 provides a graphical representation of this data. No data for RC drilling was
provided.
New Oroperu Resources Inc. - Tres Cruces Project

DDH Core Recovery - 2006/2007
100
90
80
70
Recovery (%)
60
50
40
30
20
10
0
0 50 100 150 200 250 300 350
Depth (m)
FIGURE 11-1 DDH CORE RECOVERY
SAMPLE PREPARATION, TRANSPORTATION AND SECURITY

Samples collected during the pre-2002 drilling programs were shipped without any
additional preparation. Barrick maintains its own sample preparation laboratory at
Lagunas Norte. Normally, drill samples from Tres Cruces are processed at this facility
prior to shipment to independent offsite laboratories. During backlogs, samples are
sometimes shipped without further processing, although this proportion is not known.
Under normal procedure, samples are received in the preparation laboratory, where
geology and laboratory personnel verify sample quantities and codes and the physical
state of the sample. Samples are emptied into trays and dried in an oven at 105 for five

to six hours, then crushed to 90% passing 0.25 inches. The crusher is contained in a
negative pressure environment to reduce dust while minimizing loss of fines. The
crusher is cleaned with compressed air after each sample and blank material inserted
after every tenth sample to minimize contamination. The crushed sample is reduced in
size from an average 7 to 8 kg down to 500 to 600 g through use of a Jones splitter.
The reject is returned to the original sample bag and stored for future reference. The
reduced sample is pulverized to 90% passing 200 mesh using a Lab Tech LM-2
pulverizer and split into two envelopes. The bowl of the pulverizer is cleaned with
compressed air after each sample. One envelope is sent to an outside lab for analysis
and the other retained for further reference and testing as required.
Prepared samples are packaged at the laboratory and returned to the geology
department in boxes containing approximately 25 samples. QC samples (standards and
blanks) are inserted with the samples from the laboratory. These boxes are then
packaged into larger boxes containing 10 sets of samples and sealed with a laboratory
order inside. The sealed boxes are shipped to the outside assay laboratory using
contracted haulers.
ANALYTICAL PROCEDURES AND LABORATORIES

During the Oroperu phase of exploration, samples were shipped to SGS Labs in Lima,
Peru for a 1-assay tonne gold fire assay with an Atomic Absorption (AA) finish reported
in ppb. A second pulp was shipped to Acme Analytical Labs in Vancouver for any
sample with an initial assay 300 ppb or greater and also duplicate pulps were checked at
random. Additionally those samples less than 300 ppb were included if the sample was
part of a continuous mineralized interval. Acme Analytical results were used in the final
database for resource modeling.
Battle Mountain sent their samples were to ALS Laboratories in Lima for gold analysis
and an ICP 33-element package. A cyanide shaker solubility determination was also
carried out on sample with assays of greater than 500 ppb in earlier holes and 1500 ppb
in later holes.
Barrick sent their samples from Tres Cruces to ALS Chemex in Lima for gold analysis by
fire assay and atomic absorption finish (ALS procedure Au-AA24) using 50 gram pulp

samples. All samples reporting assays greater than 10 g/t Au were re-analyzed by fire
assay with a gravimetric finish (ALS procedure Au-GRA22). As of February, 2008, all
samples greater than 5 g/t Au are re-analyzed using the gravimetric finish. Samples
were also analyzed for 34 element ICP (inductive coupled plasma) AES (atomic
emission spectroscopy) after decomposition by nitric aqua regia digestion (ALS
procedure ME-ICP41). The Lima laboratory has both ISO 9001:2008 and ISO/IEC
17025:2005 accreditations for the analytical techniques employed for the Tres Cruces
samples.
DUPLICATES, STANDARDS AND BLANKS

In Smees report, it is indicated that the pre-2002 data generated by Oroperu and Battle
Mountain does not contain any known quality control (QC) data, and therefore cannot be
confirmed directly as being accurate, precise, non-contaminated or even in the correct
order (Smee, 2008). Based on Reeder and McCreas report (Reeder, McCrea, 2002) it
is understood that Oroperu inserted duplicates for about 10% of the samples, however
the results of this QC program were not available for L&A to review. Oroperu drilled 11
diamond core and 50 RC holes during 1996 and 1997. BMC also maintained a QC
program, with a gold standard inserted for every fifty drill samples as quality checks on
the lab. ALS also carried out internal checks and duplicate pulps for every tenth sample
were sent to SGS laboratory as a further quality check. Between 1998 and 1999, BMC
drilled 82 diamond core and 26 RC holes, with a total of 13,570 samples submitted for
assay. Cooper provides a summary of QC results for BMCs sampling in his 1999 report
(Cooper, 1999).
The insertion of QC samples to monitor accuracy, precision and contamination has been
performed by Barrick at the Tres Cruces drilling since the inception of their program in
2002. In their 2002 to 2004 program, Barrick drilled 29 diamond core holes and took
4170 samples. Barrick inserted a QC sample in the form of a duplicate, standard, or
blank in the sample stream at an approximate frequency of one for every 28 samples.
L&A has not reviewed this data although results are summarized in Smees report
(Smee, 2008). During the 2006/2007 program, Barrick drilled 86 diamond core and 73
RC holes and took 25,899 samples, with the frequency increasing to about one QC
insertion for every 12 samples. The current QA/QC program called for two blanks, four
standards and three field duplicates to be inserted with every batch of 75 samples,

accounting for one in every 9 submissions. As part of their review, Smee examined
most aspects of the QA/QC program employed for Tres Cruces by Barrick. L&A has
reviewed Smees report.
STANDARDS AND BLANKS

A total of 169 gold standards were inserted with drill samples collected by BMC. The
most commonly submitted standard (B2: 51% of the data) generally assayed within a 50-
ppb range straddling an accepted value of 637 ppb. (+/- 4%). The second most
commonly submitted standard (R2: 27% of the data) generally assayed within a much
broader range (up to 100 ppb) at a comparable grade, although lab accuracy appeared
to have been improving over time and the nominal range for the latter half of these data
is acceptable. Standard R4 had the highest accepted value of those used (1077 ppb),
and although only representative of 12% of the data, a disturbing trend of reduction in
accuracy over time can be noted (Cooper, 1999).
The standards used by Barrick in the Tres Cruces drilling programs were certified
reference materials obtained from Lagunas Norte and Tres Cruces mineralized samples.
Blanks were coarsely crushed quartz. Batch failures for accuracy and bias were defined
as any assay result for a standard that was more than three standard deviations from the
stated mean (accuracy) or any two consecutive values that were more than two standard
deviations on the same side of the mean (bias). The latter did not have to be from the
same standard. The mean and standard deviations for each standard were derived from
the Certificate of Analysis provided by the supplier and based on the results of round
robin testing by a group of laboratories.
Barrick used two standards during the 2002 to 2004 program: one averaging
approximately 8.9 g/t Au, and the other approximately 1.24 g/t Au. A total of 50
standards were inserted at an average frequency of one in 83 samples. There were no
failures in the standards, and no significant bias in analyses. By inference, the analytical
data can be considered to be accurate within the limits of industry best practice (Smee,
2008). At total of 49 blanks were inserted with the samples (about the same frequency
as standards) to monitor contamination. Only one sample exceeded the warning
threshold of 0.025 g/t Au.

During the 2006/2007 program, 897 standards and 756 field blanks were inserted for an
average frequency of one in 29 samples and one in 34 samples, respectively. Eight
standards, ranging from approximately 0.5 g/t Au to 4.9 g/t Au, were used, with no
failures noted in the 2006 drilling and ten failures in the 2007 drilling, all of which were
addressed and corrected. For blank inserted during the 2006 program, there was one
failure that was a probable mix-up in samples and four low-level failures that exceeded
the 0.025 g/t Au threshold. There were seven low-level failures for blank insertions in
the 2007 drilling. None of the 2006/2007 failures exceed the previously established
threshold of 0.04 g/t Au. No action has been taken on these failures however if the
insertions lie within a mineralized interval, re-assay of the intervals may be warranted.
Smee recalculated the means and limits for the standards after excluding some of the
laboratories used in round-robin testing. Under the new limits, several failures were
noted in the 2006 data and a large number of failures in one of the low-grade standards
in the 2007 data. Smee concluded that the 2006 program may have a low bias for low
grade samples, but is accurate within industry best practice. For 2007, Smee concludes
that the high bias and failure rate for the lowest grade standard is most likely a problem
with the standard as the next standard shows a slightly low bias. There is also a rising
trend in the bias as the grade of the standard increases, except for the highest standard,
which results are biased low. This may indicate a problem in the range where the finish
is switched from AA to a gravimetric and a new high-grade standard should be made to
monitor those assays using a gravimetric finish (Smee, 2008). Table 11-1 summarizes
results for 2007 in order of increasing grade.
TABLE 11-1 2007 LAB RESULTS, STANDARDS

Standard Certified Mean ALS Chemex Average Difference

g/t Au g/t Au %
M3B06 0.499 0.524 5.114
SPD-9 0.553 0.548 -0.943
STD 12 1.223 1.218 -0.373
M2AH07 2.202 2.234 1.450
SPD-8 2.824 2.853 1.015
M1A06 3.978 4.117 3.496
M307 4.969 4.654 -6.340
Source: Smee, 2008

DUPLICATES
No reports or data are available for duplicate samples taken during the Oroperu phase of
exploration. According to an internal report by BMC (BMC, 1999), there were no obvious
problems encountered with reproducing assay results during the Battle Mountain drilling.
Comparisons were made on 689 samples between original ALS assays and SGS check-
assays from pulps. According to Cooper regarding the procedure on drilling samples in
1999 there was reasonable agreement between the two laboratories (within 10%) for
samples greater than 0.3 g/t Au, with original assays from ALS tending to be lower for
samples in the 0.5 to 1.0 g/t Au range but higher than SGS for samples above 1.0 g/t Au.
The highest-grade sample checked by SGS was only 4.52 g/t Au (Cooper, 1999). A
summary table of check assay statistics for the BMC data and scatter plot produced by
Cooper are provided in Table 11-2 and Figure 11-2 respectively.
TABLE 11-2 BMC 1998/1999 ASSAY STATISTICS, PULP DUPLICATES

ALS Grade Original (ALS) Duplicates (SGS) Difference %

Range g/t Au g/t Au
g/t Au
<0.3 0.070 0.087 25
0.3-0.5 0.388 0.389 0
0.5-1.0 0.710 0.762 7
1.0-2.0 1.378 1.282 -7
2.0-5.0 2.854 2.770 -3
Source: Cooper, 1999

Source: Cooper, 1999
FIGURE 11-2 BMC 1998/1999 PULP DUPLICATES
A program of re-analyses of the pre-2002 drilling was undertaken by Barrick in

2002/2003. A total of 2274 samples from 14 diamond core holes and one RC hole were
taken. Standards, blanks and duplicates were submitted with the samples, with no
serious QC issues arising. The results of the re-assay program indicated a small bias in
favour of the original assays for grades between 1 and 3 g/t Au while for grades above 5
g/t Au, the original data was biased low. The latter may be due to the fact that Barrick
used a gravimetric finish for higher-grade results. The overall conclusion was that the
original assay data from Oroperu and BMC may be conservative if used in a resource
calculation (Smee, 2008). Table 11-3 summarizes these findings while Figure 11-3 and
Figure 11-4 depict results graphically.
TABLE 11-3 2002/2003 RE-ASSAY PROGRAM RESULTS

Type Avg. Original Avg. Duplicates Difference %

g/t Au g/t Au
RC (1 hole) 0.889 0.830 -6.6
Diamond (14 holes) 0.499 0.522 4.6
Diamond < 5 g/t Au 0.481 0.477 -0.8
Source: Smee, 2008

Source Smee, 2008
FIGURE 11-3 2002/2003 RC RE-ANALYSES
Source Smee, 2008
FIGURE 11-4 2002/2003 CORE RE-ANALYSES
Fifty duplicates were taken from Barricks own drilling during the 2002-2004 campaign.
Although insufficient to estimate precision accurately, Smee concludes that the
calculated value of 13% is better than most deposits of this type.

There were 376 RC and 175 core duplicates taken during Barricks 2006/2007 program.
Analyses of scatter graphs by regression (Smee, 2008) indicated a positive bias in the
original RC results for values above 1 g/t Au while data for core drilling shows no bias
(Figure 11-5 and Figure 11-6).
Source Smee, 2008
FIGURE 11-5 2006/2007 RC FIELD DUPLICATES
Source Smee, 2008
FIGURE 11-6 2006/2007 CORE FIELD DUPLICATES

L&A reviewed the scatter charts presented by Smee and, in L&As opinion, the observed
bias may be due, in part, to mislabeling however poor precision is also evident.
Incomplete homogenization in field splits or loss of fines in wet splitting may be factors
contributing to the scatter and bias. L&A was provided data for 270 RC and 72 core
duplicates taken in 2007 and 2008. There may be some overlap with the 2006/2007
data however L&A does not have Smees data set to confirm this. The bias and scatter
observed in 2006/2007 RC data is not evident in the 2007/2008 RC data although
regression shows a small positive bias in favour of the duplicates. This may well be the
result of mislabeling. If the two most obvious deviations are removed from the data set,
no discernable bias is indicated. Figure 11-7 shows the scatter chart for 2007/2008 RC
field duplicates, while Figure 11-8 shows the diamond core data.
L&A also analyzed the duplicate sample results for 2007/2008 by applying t-tests for
paired samples to test the equality of the population means underlying each set of
samples. Where the t statistic exceeds the critical value for a 5% level of significance,
the difference is said to be statistically significant at that level (i.e., there is at least a 95%
probability that the difference is significant). Those with high t statistics indicate a higher
probability of statistically different means. Table 11-4 summarizes the results of t-tests
for paired duplicate samples from the 2007/2008 drilling program
TABLE 11-4 2007/2008 FIELD DUPLICATE STATISTICS

Core RC
g/t Au >= 0 g/t Au >= 0
Observations 72 270
Original 0.593 0.276
Duplicate 0.591 0.280
Difference -0.4% 1.3%
t Statistic (T) 0.573 -0.612
P(T<=t) 2-tail 56.8% 54.1%
t Critical 2-tail 1.964 1.969
For the 2007/2008 program, the differences in the means between original and duplicate
analytical results for both the RC and core drilling were not found to be statistically
significant at a 95% confidence interval.

Tres Cruces - 2007/2008 RC Field Duplicates Au AA24
y = 1.0395x - 0.0074
5 R2 = 0.9739
Duplicate AA24 Assays g/t Au
0
0 1 2 3 4 5 6
Original AA24 Assays g/t Au
FIGURE 11-7 2007/2008 RC FIELD DUPLICATES
Tres Cruces - 2007/2008 Core Duplicates - Au AA24
12
y = 1.0015x - 0.0031
10
R2 = 0.9994
Duplicate AA24 Assays g/t Au
0
0 2 4 6 8 10 12
Original AA24 Assays g/t Au
FIGURE 11-8 2007/2008 CORE FIELD DUPLICATES

ADEQUACY OF SAMPLE PREPARATION, SECURITY AND ANALYSIS

As previously indicated, samples collected during the pre-2002 drilling programs were
shipped without any additional preparation. Barrick maintains its own sample
preparation laboratory at Lagunas Norte. Based on Smees comparison of results for
Barricks preparation reject and pulp duplicates, Barricks laboratory is performing
sample preparation to industry standards (Smee, 2008). As no detail regarding chain-of-
custody from the Project to the assay laboratories was available for L&A to review, no
assessment can be made regarding security. It can however be said that there would be
very little impetus for sample tampering in a company with the stature of Barrick.
Although both Oroperu and BMC had QC programs, not much is known about Oroperus
program. BMC inserted QC samples and monitored results, as can be evidenced from
Coopers report (Cooper, 1999), however it is not known what failure criteria and
corrective action was employed, if any. According to Cooper, original assays were
biased low for samples under 1.0 g/t Au but higher than the duplicates for values above
this range (Cooper, 1999). L&A notes that according to Table 11-2, the differences are
well within expected ranges for deposits of this type. The results of Barricks re-sampling
program in 2002 and 2003 suggest that the data is accurate within industry standard
although biased low for samples over 5 g/t Au (Smee, 2008).
Barrick maintains a comprehensive QA/QC program for the Tres Cruces sample
preparation, security and analysis, which, in L&As opinion, meets or exceeds industry
standards. There were no failures in the 2002-2004 standards, and no significant bias in
analyses. Only one blank exceeded the warning threshold of 0.025 g/t Au. No failures
were noted in the 2006 drilling and ten failures in the 2007 drilling, all of which were
addressed and corrected. There were a number of low-level failures for blank insertions
however none of the 2006/2007 failures exceeded the previously established threshold
of 0.04 g/t Au.
Subsequent to recalculating the means and limits for the standards after excluding some
of the laboratory results used in round-robin testing, Smee noted several failures in the
2006 data and a large number of failures in one of the low-grade standards in the 2007
data, although the latter was most likely due to a problem with the standard itself. Smee
concludes that the Barrick QC data shows that the assays are accurate within normal

industry limits although the failure limits for the standards should be redefined and any
failures examined.
With respect to duplicate data, Smee concludes precision is within normal limits
expected from similar gold deposits however the bias in the RC samples should be
examined. Based on L&As review of the 2007/2008 duplicate data, there appears to be
very little bias in either the RC or core data.
Overall, L&A concludes that the Tres Cruces data and data base is suitable for use in
mineral resource estimates. Notwithstanding this conclusion, further effort should be
made to document the procedures employed prior to Barricks involvement in the Project
and assess those factors that may materially impact on the accuracy and reliability of the
data.

12 DATA VERIFICATION
DATABASE
Barricks database, which includes the Tres Cruces drill data and assays, uses acQuire
software to manage the data. The database has undergone at least one external review
(Smee, 2008). The deficiencies in the database noted in Smees review primarily pertain
to the pre-2002 data. The absence of duplicate pulp assays contained in earlier
databases, rounding issues with some of the BMC data, and the lack of any certificates
to corroborate assay results are a few of the notable items. As part of the review, Smee
also compared data for 14 drill holes in the acQuire database with the certificates on
file. Since no certificates were available for the pre-2002 drilling, Smee used digital
printouts of the earlier databases created by BMC and Oroperu. Other than the
rounding issues, no serious discrepancies were noted.
INDEPENDENT VERIFICATION
ASSAYS
Data provided to L&A were based on exports from Barricks database. L&A
independently verified a portion of the database by selecting some of the more recent
diamond core holes in the South, Southwest and South Extension Zones and comparing
the gold assay values in the provided data with the signed assay certificates from the
laboratory. In total, assay results for the mineralized portions for 12 of the 239 holes that
intersect the mineralized envelope modeled by Barrick were verified. No errors,
inconsistencies, or discrepancies were noted except in the case of samples over 5 g/t Au
that had been re-assayed using a gravimetric finish. L&A found six instances where the
value had been rounded from two decimal places to one place. This is likely because
these values were entered manually before the digital data was received. Although not
material to the mineral resource estimates contained in this report, it does indicate a
lapse in the data verification procedures.
SAMPLES
In addition to the data verification discussed above, L&A collected several independent
samples from three diamond core holes completed in 2006 (hole DTC-240) and 2007
(holes DTC-279 and DTC-280) programs that were laid out for inspection. While not
generally indicative of the average grade or meant to serve as duplicates, the results do
confirm the presence of significant gold mineralization.

Samples of split core were sent by L&A to ALS Minerals in LIMA (Certificate
LI11083983). L&A maintained chain of custody from the Project site to LIMA, where the
sample was forwarded to the laboratory by courier. The samples were supposed to
represent a cross-section of typical mineral occurrences within the deposit, with gold
grades ranging from low to high. Results are summarized in Table 14-1. Results from
ALS Chemex for the intervals from which the original samples were taken are also
provided for reference.
Note that a direct comparison should not be made for the split core, as the intervals for
the samples taken by the author were much shorter. The differences do serve to
demonstrate the variability that exists over relatively short distances.
TABLE 14-1 ANALYTICAL RESULTS, INDEPENDENT SAMPLES

Sample Description Original Independent

Code Interval Length
Zone Drill Hole Sample# g/t Au g/t Au
Lith/Alt m cm
SZ 6/2 DTC-280 144.5-146.0 ST-021234 2.73 20 4.90
SWZ 6/2 DTC-240 136.5-138.0 ST-007553 0.162 15 0.094
S.Ext.Z 5/6 DTC-279 79.5-81.0 ST-021079 5.65 12 1.69
Notes:
1. See Table 14-9 for Alt Codes, Table 14-10 for Lith Codes.
DRILL HOLE SURVEYS

Hand-held GPS readings were taken on reclaimed pads for two of the diamond core
holes from which the independent samples were derived (DTC-240, DTC-279).
Unfortunately collars are often destroyed shortly after drilling by site reclaimation and the
exact location of the collars could not be found. Readings for northings and eastings
were within a few metres of the stated values in the database, which were taken by
differential GPS. Elevations were approximately 25 m higher than those values
contained in the database. In an earlier field check using differential GPS, Smee located
16 holes and compared elevations with the database. The deviations were less than
one meter in all cases, however Smee did recommend that all collars that could be found
be resurveyed.

13 MINERAL PROCESSING AND

METALLURGICAL TESTING
SUMMARY
There have been essentially three phases of metallurgical test work at Tres Cruces,
each corresponding with a change in operatorship. Much of the test work has focussed
on improving recoveries for sulphide ores, which comprise the lions share of resources
at Tres Cruces.
The first phase, conducted by Oroperu, indicated that while high Au recoveries were
attainable, results were not consistent, with some composites responding poorly to
cyanidation. Including a gravity step showed marginal improvement. Subsequent
flotation tests showed promise, with composites refractory to cyanidation demonstrating
high recoveries and amenability to cleaning.
BMC focussed primarily on sorting out the low recoveries for sulphides by investigating
bio-oxidation and fine-grind leaching. Mineralogy studies commissioned by BMC
showed that for the four samples of core submitted, native Au grains were extremely fine
grained and solid solution Au concentrates preferentially in finer-grained arsenic-rich
pyrite species that are intimately inter-grown with gangue minerals that make the Au
difficult to liberate. The study recommended oxidative pre-treatment and the preferential
deportment with pyrite may be exploited by pre-concentration into low-grade sulphide
concentrates. Bio-oxidation column and shaker-flask leach testing conducted by BMC
indicated significant improvements in Au recovery could be realized, but not as high as
that for oxide ores where conventional column leach tests had established Au recoveries
in the range of 78% to 95%.
Barrick continued with a large number quick leach tests at their Lagunas Norte
laboratory on both oxide and sulphide samples, establishing a baseline Au recovery of
around 85% for oxides. Testing continued with one suite of samples sent to an outside
laboratory for CIL cyanidation testing and a second suite sent to another laboratory for
combination flotation/cyanidation testing. The latter, which involved flotation tests
followed by cyanidation of the flotation tailings, indicated that plus 80% recoveries could
be realized for sulphide ores, producing a concentrate of sufficiently low mass and high

grade to allow shipping of the concentrate offsite for treatment. The flotation testing is by
no means definitive at this point and requires further work, including lock-cycle testing.
L&A notes that given the size of the Tres Cruces resource, the best option may be to
construct a facility at or near Tres Cruces and Lagunas Norte that would allow oxidative
pre-treatment of flotation concentrates, eliminating the costly option of shipping
concentrates.
OROPERU
In 1998, Process research Associates Ltd. (PRA, 1998) conducted metallurgical test
work on 14 composite samples from five RC holes drilled by Oroperu in 1997. Tests
included:
Bottle roll cyanidation on nine composites
Hg and organic C determination on nine composites
Gravity panning and CIL cyanidation on ten composites
Scoping flotation on three composites
Follow-up flotation on one composite.
Initial bottle roll tests indicated that high Au recoveries were attainable but results were
highly variable, with some of the composites responding poorly to cyanidation. Au
recoveries ranged from 13.5% to 96.6% and silver recoveries from 13.1% to 76.7%. All
but four composites had Au recoveries over 70%. The remaining four had Au recoveries
less than 50%. The results also indicated variable grindability for the composites.
Follow-up gravity panning and CIL cyanidation yielded similar results, although gravity
panning improved overall Au recovery marginally. Three composites that demonstrated
low Au recoveries in cyanidation tests responded favourably to rougher flotation tests,
with Au recoveries ranging from 84.0% to 94.8%, albeit at relatively high mass pulls.
Follow-up flotation work on one composite at a coarser grind and lower pulp density
yielded higher concentrate grades and lower mass pulls, but at the expense of reduced
Au recovery. No cleaning was performed in the flotation testing. Figure 13-1 provides a
graphical summary of results of test work for Au recovery.

FIGURE 13-1 PRA TEST WORK, AU RECOVERY
BMC
During 1999, various laboratories conducted metallurgical test work on the behalf of
BMC (BMC, 1999). Samples consisted of core, crushed core rejects and laboratory pulp
rejects from holes drilled in 1998 and 1999. Test work included:
Column-leach with pre-treatment using bio-oxidation
Shaker flask bio-oxidation
Pregnant solution robbing (preg-robbing) potential
Fine-grind leaching
Acid consumption
Column-leach on oxide samples
Au mineralogy.
Three sets of composites were prepared for metallurgical test work. The first (5
composites), comprised of core rejects crushed to 80% passing 19.8 mm, was sent in
November/December 1998. The second set (52 composites) consisted of laboratory
pulp rejects from 121 samples and arrived at the Kori Kollo laboratory in March 1999.
The size distribution for this set was too fine for column testing. The third set (20

composites), received at the Kori Kollo laboratory in May and June 1999, was derived
from 174 core and core rejects and 46 laboratory rejects.
BIO-OXIDATION
Two sets of composites (first and third sets) were subjected to column leach tests with
bio-oxidation pre-treatment. The first set, which was comprised of five composites from
crushed core rejects, showed an average improvement of 22.5% over 90 days from the
average baseline Au recovery of 35.5%. The second set, consisting of 14 composites
derived from core and core rejects, showed an average improvement of 22.3% over 60
days. Five of the 14 composites showed less favourable results due to high clay mineral
content. The average increase in Au recovery for the remaining nine composites was
25.5%. While improvements were noted in all of the columns, some composites
responded less favourably despite bio-oxidation. Column test were discontinued prior to
reaching asymptotic Au recovery in some tests and it is reasonable to expect that further
improvement would have been realized over time. Results for the two sets of column
tests are depicted graphically in Figure 13-2. Two non-refractory samples have been
excluded from the graph.
FIGURE 13-2 BIO-OXIDATION COLUMN TESTS, BMC

In order to accelerate bio-oxidation, nine composites were subjected to shaker-flask bio-

oxidation at elevated temperatures. Samples of -200 mesh (74 ) refractory material
were bio-oxidized in flasks at 20% solids at 35C for 25 days. The average increase in
Au recovery for the nine tests was 43.2%. Results are shown in Figure 13-3.
FIGURE 13-3 BIO-OXIDATION SHAKER TESTS, BMC
PREG-ROBBING
Pre-robbing test work was conducted on samples from the first and second sets of
composites. All five composites from the first set showed pre-robbing potential in the
test results. 33 of the 52 composites from the second set were subjected to testing. 21
of the 33 samples demonstrated some degree of preg-robbing characteristics. Samples
with Au recoveries above 50% generally showed little potential for pre-robbing. It was
not determined what the cause of the pre-robbing was. Scoping tests at Lakefield
Research also demonstrated pre-robbing characteristics on one sample from the third
set of composites.
FINE-GRIND LEACHING
Twenty of the 52 composites from the second set were subjected to fine grind leaching.
The samples were ground to -400 mesh and leached in an agitated vessel. The overall
conclusion from the testing was that leaching at a finer grind did not have a beneficial
impact on Au recovery.

SAMPLE AGING
Bottle roll testing on the second set of composites at the Kori Kollo laboratory indicated
significantly higher Au recovery than earlier testing at the ALS laboratory in Peru on the
same samples. Pulps run as received by Kori Kollo yielded an average Au recovery of
31.3% while pulverizing the samples increased the average to 41.7%. The average for
the corresponding samples run at ALS was 21.5%. The results indicate that the samples
had aged or oxidized, leading to higher amenability to cyanidation. This may have some
implication on the potential for pre-treatment with bio-oxidation as well as other methods
that oxidize the sulphides prior to leaching.
ACID CONSUMPTION
Acid consumption tests were run on the five composites from the first set and
observations made on consumption for other samples during bio-oxidation shaker flask
testing. Two of the five composites showed relatively high consumption while one of the
shaker-flask tests also demonstrated high acid consumption. The latter exhibited low
oxidation rates and marginal improvement in Au recovery. No acid balance
determinations were made.
OXIDE LEACHING
Six oxide composites from the third set were subjected to bottle roll and standard
cyanide-leach column tests. Leach times for the columns were very rapid, with high
recoveries reached within 20 days. Au recoveries averaged 83% for the bottle rolls and
81.7% for the column tests. It should be noted that recoveries are based on calculated
head grades. The actual assayed head grade was lower in all six composites. Table
13-1 summarizes the results of the six column tests.
TABLE 13-1 OXIDE COLUMN TEST RESULTS, BMC

Assayed Calculated Assayed Calculated

Composite Head g/t Au Head g/t Au Tail g/t Au Recovery %
69A 1.51 1.83 0.42 76.8
69B 3.39 4.39 0.77 82.5
69C 9.89 9.95 0.50 94.9
82A 1.08 1.45 0.23 84.3
82B 2.70 2.97 0.79 73.4
82C 1.69 1.88 0.41 78.0
Average 81.7

AU MINERALOGY
Four drill core samples were submitted to Advanced Mineral Technology Laboratory Ltd.
(AMTEL) in Ontario, Canada for a detailed gold deportment study (AMTEL, 1999). The
samples, ranging in grade from 1.1 g/t Au to 5.4 g/t Au, were ground to 80% passing 75
-100 . Samples were wet screened into five size fractions ranging from 100 down
to 5 and gravity separated to produce distinct mineral fractions for assaying, Au
microscopy, and other test work. Based on the four samples, the study indicated that Au
occurs as native and solid solution forms. The four primary carriers, in decreasing order
of importance, are pyrite, pyrite middlings, native gold and gangue mineral particles.
Pyrite, the principal carrier, accounting for 31% to 51% of the Au content, carries Au in
both solid solution and native Au, the latter as attachments and inclusions. Native gold
grains were extremely fine grained (95%<5) and solid solution Au concentrates
preferentially in finer-grained pyrite species that are arsenic-rich and intimately inter-
grown with gangue minerals that make the Au difficult to liberate. The study
recommended oxidative pre-treatment and the preferential deportment with pyrite may
be exploited by pre-concentration into low-grade sulphide concentrates.
BARRICK
Metallurgical test work undertaken by Barrick from 2002 to present for which L&A has
been provided data and/or reports includes:
Quick leach cyanidation tests at the Lagunas Norte laboratory
CIL cyanidation tests at McClelland Laboratories Inc. (McClelland) in Nevada
Flotation/CIL cyanidation tests at G&T Metallurgical Services Ltd. (G&T) in BC,
Canada.
Based on the results of the above test work, Barrick developed a metallurgical
performance model for the Tres Cruces which assumes that oxide components will be
treated directly by CIL cyanidation at or near Tres Cruces and Lagunas Norte while
sulphide components would be fed to a flotation circuit to produce a sulphide
concentrate which could be shipped to a treatment facility offsite or treated onsite at a
facility yet to be constructed. The tailings from the flotation circuit would also be leached
in a CIL circuit. Projected recoveries are summarized in Table 13-2.

TABLE 13-2 PROJECTED METALLURGICAL PERFORMANCE, BARRICK

S (%) g/t Au Process Au Recovery % Ag Recovery (%)

< 2.5 < 1.9 CIL 85 65
>= 2.5 < 1.9 CIL 40 30
>= 2.5 >= 1.9 Flotation+CIL 42+43=85 32+18=50
Note: Flotation+CIL recovery of 42% excludes additional losses that may be incurred treating
the flotation concentrate
The projections for oxide mineralization (<2.5% S as defined by Barrick) are primarily
based on the results of quick leach tests at the Lagunas Norte laboratory and CIL
cyanidations test at McClelland. Recoveries for the sulphide component (2.5% S) are
based on the work conducted at G&T.
QUICK LEACH CYANIDATION

Much of the earlier testing on Tres Cruces mineralization conducted by Barrick was
completed at the Lagunas Norte laboratory. According to reports provided to L&A, the
average Au recovery for 251 oxide samples subjected to quick leach cyanidation tests
was 78%. In evaluating these results in comparisons with CIL cyanidation tests, it was
found that the quick tests underestimated Au recovery by about 7%. Barrick has used
this differential to adjust projected Au recovery for oxides upward to 85%.
CIL CYANIDATION
In 2007, Barrick sent 109 composites consisting of coarse rejects to McClelland. The
samples were obtained from 20 drill holes representing 788 meters of mineralized
intercepts. The grade of individual composites ranged from 0.5 g/t Au to 7 g/t Au and
0.01%S to 8%S. The results of CIL cyanidation tests indicated an Au recovery of 41.8%
for grades less than 1.9 g/t Au and greater than 2.5% S. For grades above 0.5 g/t Au
and lower than 2.5% S, the average Au recovery was 66.7% although this is based on
only 16 samples, some of which were obtained from considerable depth.
L&A notes that Au recoveries do not necessarily depend on sulphur content. A review of
McClellands data by Oroperu indicates that there is a stronger relationship between Au

recovery and depth. Those samples with both high Au recovery and S content are
primarily derived from shallower depths while those with lower recoveries are from
deeper intervals. It is probable that in those samples exhibiting higher recoveries, some
or potentially all of the sulphur occurs in sulfate minerals (oxide state) versus sulphides.
Those samples from the upper reaches of the deposit that have very low sulphur content
may have been completely leached of sulphur following oxidation or gold deports as free
grains (Green, 2009). Figure 13-4 shows results for Au recovery versus depth of sample
while for Figure 13-5 the same recovery data is plotted against sulphur content.
Source: Green, 2009

FIGURE 13-4 AU R VS. DEPTH, CIL LEACH TESTS, MCCLELLAND
Source: Green, 2009

FIGURE 13-5 AU R VS. S, CIL LEACH TESTS, MCCLELLAND

FLOTATION AND CIL CYANIDATON OF FLOTATION TAILINGS

In June 2007, Barrick sent 33 core and 33 matching crushed core rejects from diamond
core hole DTC-253 to G&T to investigate the comparative response of the paired
samples to rougher-scavenger flotation, followed by cyanidation of the rougher tailings.
The average grade of the samples was approximately 1.7 g/t Au and 3.1 % S. The
range was 0.27 g/t Au to 13.4 g/t Au and 0.02 % S to 4.66 % S. Recovery to the
flotation rougher-scavenger concentrate was 72% for the core while for the crushed
rejects the recovery was 62%. The poorer response to flotation indicated for the rejects
may have been the result of higher levels of sulphide oxidation due to the larger surface
area of the crushed sample. The overall Au recovery of the combined flotation plus
cyanidation was 95% for both the core and the corresponding crushed rejects, indicating
that the incremental losses to the flotation tailings experienced by the reject sample suite
was effectively recovered in the cyanidation process. Evidently the assumed higher
levels of oxidation in the reject suite of samples had a beneficial impact on the recovery
of Au from the flotation tailings. The results are summarized in Table 13-3Error!
Reference source not found..
TABLE 13-3 COMPARATIVE FLOTATION/CYANIDATION TESTS, G&T

Au Circuit Recovery
Flotation Cyanide Leach Overall

Rougher Conc. Tailings of Flotation Tails Circuit
Suite (DTC-253) % of Feed % of Feed % of Tails % of Feed % of Feed
33 Core Samples 72 28 79 23 95
33 Crushed Rejects 62 38 85 33 95
Between November 2007 and March 2008, Barrick sent 113 composites of crushed core
to G&T for variability testing. The composites, grading 0.4 g/t Au to 12.1 g/t Au and
0.05% S to 8.5% S, were from 13 drill holes, representing 1,040 m of mineralized
intercepts. As in the first phase, the composites were subjected to sulphide flotation
followed by cyanidation of the tailings. The flowsheet was modified to include three
stages of dilution cleaning, including a cleaner-scavenger step. The target was to
produce a concentrate grading about 35% S at a mass pull representing 5% to 10% of
the feed weight.

The average Au recovery to the rougher concentrate was 75.3%, comparable to the
results achieved for the 33 core samples in first phase of testing. The average mass pull
was 24%. The rougher concentrate was reground to 80% passing 50 and fed to a
three stage cleaner circuit, where the average mass was reduced to 9.6% of the feed
weight. Au recovery to the sulphide concentrate after regrinding and three stages of
cleaning was 57.3% of the content in the flotation feed. The first cleaner tailings were
fed to the cleaner-scavenger circuit, where additional sulphides were recovered.
Including the cleaner-scavenger concentrate, overall Au recovery in the flotation circuit
was 61% although the mass pull increased to 11.5% of the feed weight.
The cleaner-scavenger tailings and the rougher tailings were combined and subjected to
cyanidation under the same conditions as in the first phase of testing. Average Au
recovery was 60% of that contained in the combined tailings or 20% of the Au in the
flotation feed. This does not compare well with results from the first phase of testing,
where Au recovery by cyanidation from the rougher tails averaged close to 80%. The
cleaner-scavenger tailings accounted for 24.3% of the Au contained in the feed to the
cyanidation circuit although it is unlikely that much of the Au contained in the cleaner-
scavenger tailings was recovered by cyanidation. Ignoring this fraction, the recovered
Au represents about 78% of the Au contained in the rougher tails, similar to the first
phase. The second and third cleaner tails were not leached, although these streams
represent close to 6% of the Au content and 20% of the Ag content in the feed.
Overall Au recovery for the cleaned flotation and cleaner-scavenger concentrates plus
the cyanidation of rougher and cleaner-scavenger tailings was 81%. Ideally, the
cleaner-scavenger concentrate (first cleaner tails) and the second and third cleaner tails
would be recirculated, providing further opportunity for concentrate cleaning and
recovery of Au in the flotation circuit. Lock-cycle testing is necessary to assess this
potential. A summary of metal contents and recoveries for select streams is provided in
Table 13-4. Results are depicted graphically for composites grading above 2.5% S in .

TABLE 13-4 VARIABILITY FLOTATION/CYANIDATION TESTS, G&T

Metal Content
Flotation Circuit Au Ag
Rougher Concentrate - % of Flotation Feed 75.3 64.0

rd
3 Cleaner Concentrate - % of Flotation Feed 57.3 44.4
Cleaner-Scavenger Concentrate- % of Flotation Feed 3.7 3.9
Flotation Recovery - 3rd Cleaner & Cleaner-Scavenger, % of Flotation Feed 61.0 48.3
Rougher Tailings- % of Flotation Feed 24.7 36.0
Cleaner-Scavenger Tailings- % of Flotation Feed 6.0 7.8
Cyanidation Leach Circuit Au Ag
Leach Feed Rougher & Cleaner Scavenger Tailings, % of Flotation Feed 30.7 45.8
Leach Recovery, % of Leach Feed 59.0 32.3
Leach Recovery , % of Flotation Feed 20.3 15.5
Overall Circuit Au Ag
Combined Flotation & Leach Recovery, % of Flotation Feed 81.0 62.5
Note: Numbers do not necessarily add as not all flotation tests had a corresponding leach test
L&A notes that the comparative testing between core and crushed core rejects in the first
phase of testing indicated less than ideal flotation response for the crushed core rejects,
assumedly due to oxidation. Overall Au recovery for core and crushed core rejects
including cyanidation of tailings was similar. The second phase utilized crushed core
rejects, potentially impacting flotation performance negatively. Since cyanidation in this
phase included cleaner-scavenger tailings along with the rougher tailings, it is difficult to
make direct comparisons between the first and second phases. Cleaning performance
may well have been adversely affected by surface oxidation of sulphides, while leaching
would have been difficult if the gold lost during cleaning was associated with sulphides.
L&A recommends lock-cycle testing on fresh, intact or split core (prepared at the test
laboratory).

FIGURE 13-6 AU R VS. MASS PULL, FLOTATION/CIL TESTS, G&T

14 MINERAL RESOURCE ESTIMATES

SUMMARY
holes completed since the unpublished 2008 estimate by Barrick Gold Corporation S.A.
(Barrick, 2008). Table 14-1 and Table 14-2 set out the quantities and grades for the
indicated and inferred classifications as estimated by L&A. The tabulations exclude that
portion of Tres Cruces owned by Barrick. The estimated Au grades compare well with
the average assay (Table 14-7, Table 14-8) and composite grades (Table 14-13, Table
14-14) observed in statistical analyses of data. As well, estimates are close to those
produced by Barrick in terms of total Au metal, although grades are lower and the model
contains higher tonnage and metal content at lower cut-offs and lower tonnage and
metal content at higher cut-offs than the Barrick estimate. This is largely due to the
differences in methodology. Barrick used larger composites, fewer drill holes, and
inverse distance weighting (cubed) to estimate the grades in their model.
The estimates for Tres Cruces are based on a three-dimensional (3D) block model with
grade interpolation domains created using lithology and alteration wireframes provided
by Barrick. Grades were estimated using Ordinary Kriging (OK), with individual zones
interpolated separately utilizing unique search orientations for each zone. The search
orientations were largely based on the orientation of the lithology. A grade envelope
created by indicator kriging at a 0.2 g/t Au was used to constrain the estimate, using only
those composites within the envelope to estimated block grades located inside the
envelope. Similarly, grade estimates for blocks outside the envelope utilized only those
composites also located outside the envelope. L&A did not produce an estimate for Ag
although, given current Ag prices, future models should include Ag. There is not a very
good correlation between Ag and Au but the average ratio of Ag to Au is approximately
3:1 based on over 43,200 intervals assayed for both metals. For Au values above 0.6
g/t Au, the ratio is approximately 2:1. The model supplied by Barrick did not contain an
estimate for Ag.
Only those blocks above 0.6 g/t Au are reported in Table 14-1 although the cut-off
should be revisited once more site-specific cost and revenue data is available. Note that
while tabulations have also been provided at increasing g/t Au cut-offs, it is L&As

opinion that a 0.6 g/t Au cut-off would be appropriate for the reporting of the estimates.
prospects of economic extraction, L&A evaluated the resource using pit optimization
software. At the 0.6 g/t Au cut-off grade, the difference between the indicated mineral
resource Au metal content in the optimized pit shell and that contained within the full
resource is less than 4%. On the basis of these findings, it is L&As opinion that there is
little merit in restricting the reported mineral resources to those contained only within the
pit shell at this time although this issue will have to be revisited once more definitive cost
and performance parameters have been developed. Accordingly, the mineral resource
inventory has been reported in its entirety.
The estimate is based on the assay results from 359 drill holes, 239 of which pierce the
0.2 g/t Au envelope. The average distance from a block classified as indicated to the 4
closest holes is 45m. For inferred, the average distance to the closest 2 or more holes
used to estimate the grades is 69 m. The Cardoso Zone is the least densely drilled and
contains only inferred mineral resources. Those mineral resources classified as
indicated are located within the core of the drilling, while the inferred mineral resources
are located along the periphery and at depth where spacing is insufficient to include in
higher-confidence categories.

TABLE 14-1 MINERAL RESOURCE ESTIMATES


North Zone (1) 8,744 1.08 304
South Zone (5) 20,525 1.29 850
SW Zone (6) 17,849 1.30 746
S Ext. Zone (3) 18,910 1.16 708
Cardoso (4) - - -
Totals 66,029 1.23 2,608
Inferred
North Zone (1) 646 0.74 15
South Zone (5) 10,149 0.98 319
SW Zone (6) 2,324 0.83 62
S Ext. Zone (3) 4,123 1.07 142
Cardoso (4) 2,310 0.98 73
Totals 19,552 0.97 611
Notes:
metallurgical recovery of 82% of the contained gold.

TABLE 14-2 MINERAL RESOURCE ESTIMATES, AU CUT-OFF TABLE


Cut-off g/t Au Kt g/t Au Koz Au
0.2 135,131 0.81 3,522
0.3 122,781 0.87 3,422
0.4 103,554 0.96 3,204
0.5 83,347 1.09 2,913
0.6 66,029 1.23 2,608
0.7 53,508 1.36 2,347
0.8 44,502 1.49 2,131
0.9 37,368 1.61 1,936
1.0 31,766 1.73 1,766
Inferred
0.2 60,119 0.57 1,103
0.3 47,644 0.66 1,006
0.4 37,350 0.74 890
0.5 26,989 0.85 741
0.6 19,552 0.97 611
0.7 14,345 1.09 502
0.8 10,529 1.21 411
0.9 8,119 1.32 345
1.0 6,255 1.43 289
Notes:
metallurgical recovery of 82% of the contained gold.

PREVIOUS ESTIMATES
At least two previous mineral resource estimates have been completed for the Tres
Cruces property. BMC completed an estimate in 1999 based on 108 drill holes (Cooper,
1999). That estimate is considered historic. Barrick completed an estimate in 2008
based on about 20 less holes than the current estimate by L&A. The underlying
geological interpretation and domain coding used by Barrick was employed by L&A in
the current estimate although Barrick used inverse distance cubed rather than kriging to
estimate grades. Tabulations compiled by L&A using the block model grades and
classification provided by Barrick are provided in Table 14-3 to Table 14-5. Resources
lying within the Barrick-owned claims have been excluded from the tabulations.

TABLE 14-3 2008 MINERAL RESOURCE ESTIMATE, BARRICK

Measured
North Zone (1) 387 1.32 16
South Zone (5) 702 1.57 35
SW Zone (6) 454 1.61 24
S Ext. Zone (3) 448 1.55 22
Cardoso (4) - - -
Total Measured 1,991 1.53 98
Indicated
North Zone (1) 7,894 1.18 300
South Zone (5) 19,669 1.41 893
SW Zone (6) 14,751 1.47 697
S Ext. Zone (3) 13,995 1.32 594
Cardoso (4) - - -
Total Indicated 56,309 1.37 2,483
Measured + Indicated
North Zone (1) 8,282 1.19 316
South Zone (5) 20,370 1.42 929
SW Zone (6) 15,205 1.47 720
S Ext. Zone (3) 14,443 1.33 616
Cardoso (4) - - -
Total Meas + Ind 58,300 1.38 2,581
Inferred
North Zone (1) 501 0.75 12
South Zone (5) 6,888 1.04 231
SW Zone (6) 4,254 0.91 124
S Ext. Zone (3) 8,487 1.20 326
Cardoso (4) 1,731 0.98 55
Total Inferred 21,861 1.06 748
Notes:
1. Classification by Barrick.
3. Differences due to round-off.
4. Barrick claims excluded.

TABLE 14-4 2008 BARRICK ESTIMATE, AU CUT-OFF TABLE

Measured
0.2 4,123 0.93 123
0.3 3,415 1.07 117
0.4 2,832 1.22 111
0.5 2,359 1.37 104
0.6 1,991 1.53 98
0.7 1,690 1.68 92
0.8 1,438 1.85 85
0.9 1,275 1.98 81
1.0 1,102 2.14 76
Indicated
0.2 115,500 0.87 3,227
0.3 100,134 0.96 3,101
0.4 83,778 1.08 2,917
0.5 68,242 1.23 2,694
0.6 56,309 1.37 2,483
0.7 46,726 1.52 2,284
0.8 39,294 1.67 2,106
0.9 33,407 1.81 1,946
1.0 28,767 1.95 1,804
Notes:
1. Classification by Barrick..

TABLE 14-5 2008 BARRICK ESTIMATE, AU CUT-OFF TABLE

Measured & Indicated

0.2 119,624 0.87 3,350
0.3 103,548 0.97 3,218
0.4 86,610 1.09 3,029
0.5 70,600 1.23 2,798
0.6 58,300 1.38 2,581
0.7 48,416 1.53 2,376
0.8 40,732 1.67 2,191
0.9 34,681 1.82 2,027
1.0 29,870 1.96 1,880
Inferred
0.2 71,007 0.59 1,344
0.3 57,416 0.67 1,233
0.4 41,851 0.79 1,058
0.5 29,608 0.93 884
0.6 21,861 1.06 748
0.7 16,361 1.20 633
0.8 12,389 1.35 538
0.9 9,602 1.50 462
1.0 7,733 1.63 405
Notes:
1. Classification by Barrick..
Barricks 2008 estimate utilized a grade envelope to control the interpolation. The
envelope was created using inverse distance cubed weighting to estimate indicator
values at a 0.2 g/t Au cut-off. Block grade estimates located inside the envelope used
only those composites also located inside. Similarly, block grade estimates outside the
envelope used composites external to the envelope. Blocks were 10m x 10m x 10m in
size and drill data was composited in down-hole lengths of 10m. All assays were
capped prior to compositing (see Capping). Inverse distance cubed was used to
estimate grades, using multiple passes. The primary searches used a minimum of 2
composites and a maximum of 3. Blocks were classified as indicated, provided at least
two holes were found within 60 m (rotated major and intermediate axes) with the closest
within 30 m. A secondary interpolation pass using a minimum of 1 hole within 15 m and

up to 2 holes within 30 m was used to populate blocks close to drill holes that had not
been estimated in the primary interpolation. A tertiary pass, using a minimum of 2 holes
and a maximum of 3 holes within 120 m was also employed. All blocks not classified as
measured or indicated were classified as inferred, provided at least one composite was
found within 60 m and at least 2 within 120 m. Barrick also classified any block whose
centre was within 5 m of a drill hole as measured, albeit this comprises a very small
portion of the total.
DATABASE GENERAL DESCRIPTION
The mineral resource estimates for Tres Cruces are based primarily on information from
surface drilling, supplemented in part by surface mapping to assist in the interpretations.
The collar database provided to L&A contained 359 drill holes, with roughly half of those
being diamond core and the remaining RC. Most holes are drilled at 70 degrees dip or
steeper although a few are drilled as shallow as 45 degrees. Holes range in length from
27 m to 394 m with the majority between 100 m and 300 m.
Drilling on Tres Cruces is spread out over an area of 3,000 m (north-south) by 2,400 m
(east-west), with the density of drilling increasing in the area of the five zones identified
to date. A total of 326 of the holes are located within the block model boundaries and
239 pierce the 0.2 g/t Au envelope used to constrain the grade estimates. A total of 10
holes which include 5 RC holes that have been twinned by diamond core holes, 4
diamond core holes with missing assays; and 1 RC hole with suspected down-hole
contamination have not been used in the estimate (see Table 14-6).

TABLE 14-6 HOLES EXCLUDED FROM DATABASE

Drill Hole Length (m) Comment
RTC-15 272.5 Twinned

RTC-255 265.0 Contamination?
DTC-225 250.4 Missing Assays
ASSAYS
The assay database provided to L&A contains more than 51,000 assay intervals with
gold values greater than zero. Sample lengths range from 0.25 m to 11.0 m although
most sampled intervals are 1.5 metres or 1.0 m in length. Approximately 17,300
intervals are located within the 0.2 g/t Au envelope determined by indicator kriging. Brief
statistical summaries of the North, South, Southwest, South Extension and Cardoso
Zones are provided in Table 14-7 and Table 14-8.
TABLE 14-7 ZONE ASSAY STATISTICS - Au

g/t Au
Zone (Code) Count Min Max Average Std. Dev.
North Zone (1) 10,417 0.002 110.1 0.387 1.822

South Zone (5) 12,593 0.002 254.27 0.434 2.724
SW Zone (6) 10,834 0.002 39.50 0.382 1.111
S Ext. Zone (3) 12,356 0.002 101.50 0.370 1.424
Cardoso (4) 1,033 0.002 12.90 0.315 0.882
Totals (1-6) 47,233 0.002 254.27 0.388 1.841
Notes: SZ (2) split into SZ (5) and SWZ (6) due to geometry.

TABLE 14-8 ASSAY STATS WITHIN 0.2 G/T ENVELOPE - Au

g/t Au
Zone (Code) Count Min Max Average Std. Dev.
North Zone (1) 3,790 0.003 110.1 0.829 2.591

South Zone (5) 4,105 0.003 254.27 1.184 4.870
SW Zone (6) 4,224 0.003 39.50 0.853 1.682
S Ext. Zone (3) 4,889 0.003 101.50 0.819 2.175
Cardoso (4) 291 0.020 12.90 0.908 1.490
Totals (1-6) 17,299 0.003 254.27 0.918 2.952
Notes: SZ (2) split into SZ (5) and SWZ (6) due to geometry.
GEOLOGICAL AND STRUCTURAL MODELS
The Tres Cruces deposit has both oxide and hypogene mineralization. The oxide
mineralization is mainly limited to the rhyolite (dacite). The underlying andesitic rocks
show weak oxidization due to the abundance of clay minerals causing poor permeability
(Battle Mountain, 1999). Alteration is predictably zoned with illite, buddingtonite, and
quartz at the core, grading downward and laterally to illite-smectite and finally to
propylitic alteration. The core Illite alteration is open toward depth. The rhyolite units
contain strong silicification but also contain kaolinite and alunite, typical of an oxide zone
(Battle Mountain, 1999).
The dominant sulphide mineral is pyrite. Accessory sulphide minerals consist of

marcasite, arsenopyrite, stibnite, orpiment, realgar, and galena. Pyrite occurs in veinlets
and fractures but also as rims on earlier pyrite forming a colloform-banded texture (Battle
Mountain, 1999). This late stage pyrite is directly associated with the main-stage gold
mineralizing event.
The Tres Cruces deposit contains both oxide and sulphide components. Gold
mineralization is mainly hosted in the older andesitic porphyry and pyroclastic rocks.
The overlying rhyolites (dacites) also host mineralization but only near or along the
andesite rhyolite (dacite) contact. All the mineralization is oxidized along this contact.
Tres Cruces contains five distinct gold zones: South Zone, Southwest Zone, North Zone,
South Extension Zone, and the Cardoso Zone.

These zones of mineralization are not geologically distinct, but occur within a low-grade
envelope and would normally have boundaries defined by an assay cut-off. For the
purpose of the resource estimates, the Tres Cruces deposit has been divided into the
five forementioned zones. The division allows distinct search geometry for each zone
defined by the orientation of the lithology and alteration. Each of the five zones has
been further subdivided into four interpolation domains based on the lithology and
alteration. These domains serve to separate the weakly mineralized portions of the
rhyolite and overlying sedimentary volcanics and overburden from the main
mineralization contained along and below the rhyolite-andesite contact. The weaker
mineralized portions of the rhyolite contain primarily kaolinite while the lower portions
along the interface contain more alunite. Lithology and alteration models in the form of
3D solids or wireframes as well as the coding logic for the four domains were provided
by Barrick (below).
TABLE 14-9 LITHOLOGY MODEL

Lithology Code Comment
Andesite Tuff 1
Dacite Tuff 2
Indeterminate Tuff 3
Pyroclastic Sequence 4 Porphyry?
Pyroclastic/Dacite Sequence 5 Dacite Porphyry/Rhyolite?
Pyroclastic/Andesite Flow Seq. 6 Andesite Porphyry?
Volcanic Sediments 7
Andesite Flow 8
Andesite 9
Outside lithology model (not determined) 10
Note: There are some differences between the BMC and Barrick logging for lithology. The main
difference is whether the feldspars are predominantly orthoclase (rhyolites) or plagioclase
(dacites). When phenocrysts are present the rock can be more easily determined.

TABLE 14-10 ALTERATION MODEL

Alteration Code Comment
Overburden Sedimentary Volcanics 1

Illite, Smectite, Kaolinite 2
Quartz, Alunite, Dickite 3
Quartz, Illite, Smectite 4
Quartz, Kaolinite 5
Quartz, Opaline 6
Below Illite, Smectite, Kaolinite 8
Outside alteration model (not determined) 10
L&A coded individual assay intervals with lithology and alteration codes using the
wireframes or solid models and applied the logic in Table 14-11 to assign interpolation
codes to the intervals. The block model was coded similarly. A 0.2 g/t Au grade
envelope was then created using indicator kriging, using only matching domain codes for
composites and blocks. Further detail on grade interpolation can be found in the
following sections.
TABLE 14-11 INTERPOLATION DOMAINS

Alteration Code
1 2 3 4 5 6 8 10
Lithology Interpolation Domain Code
1 - 4 - - - - - -
2 - 4 - - - - - 10
3 1 - - - - - - -
4 - 1 - - - - - 1
5 1 4 4 4 2 2 - 3
6 4 4 4 2 2 3 3
7 1 - - - 1 1 - 1
8 - 4 - - - - 3 1
9 - 3 - - - - 3 3
10 - 4 - - - - - 10
Notes: Blank cells indicate no such match occurs in the model

ASSAY CAPPING (CUTTING)
As a standard industry practice to reduce the influence of statistically anomalous sample

data on resource estimations, a number of higher-grade assay values are often capped
prior to compositing at levels determined by various means including examination of
probability distribution data. L&A produced a series of lognormal probability curves for
all gold assays within each interpolation domain (see Table 14-11) to examine the
distribution of the assay data (Appendix 1). The distribution curves exhibited upper
breaks or inflection points closely coinciding to those capping levels used by Barrick in
their own estimates. Domains 3 and 4 also exhibited inflection points around 0.2 g/t Au,
indicating several distinct populations. This lower inflection point is the basis for the 0.2
g/t Au envelope used to constrain the grade estimates in subsequent interpolation runs.
Given the close agreement with Barricks capping levels, L&A implemented caps
identical to those used by Barrick. In total, 100 Au assay intervals were capped. These
intervals represent approximately 0.2% of the total number of assays. The net impact of
the capping was to reduce the average Au assay grade by 7.1%. Table 14-12 provides
a summary of capping levels applied to the Tres Cruces data. All data above these
levels were set back to the specified cap prior to compositing.
TABLE 14-12 ASSAY CAPPING LEVELS Au

g/t Au
# SDs
from Population # Avg. Avg.
Domain Cap Mean Maximum Capped Before After
1 0.50 4.9 1.250 11 0.029 0.026

2 5.00 3.0 101.5 10 0.173 0.146
3 5.50 3.0 86.6 22 0.321 0.276
4 13.00 6.1 254.27 53 0.485 0.460
10 1.00 9.8 2.570 4 0.030 0.029
Totals 254.27 100 0.394 0.366
COMPOSITES
For the Tres Cruces data, assay intervals have been composited in down-hole intervals
of three metres, starting at the contact for each domain, continuing until the hole leaves

the domain. Inevitably, the final composite in each domain will be shorter than the fixed
composite length unless the domain intercept is an exact multiple of the selected length.
These short composites, known as orphans, were added to the previous composite if
they were less than 1.5 metres in length. The three metres composite length was
deemed most suitable, as it was an exact multiple of the most common assay sample
intervals of 1.0 m and 1.5 m, as well as being an appropriate length for modelling grade
in the 10 m high blocks. The former provided relatively discrete composite values that
did not straddle the assay intervals, while for modelling the number of composites per
drill hole could be limited to three or four and still provide sufficient sample coverage for
each interpolated block.
Composites have been assigned unique numeric codes for each zone, domain, lithology
and alteration to differentiate them from the surrounding material. Summaries of
composite statistics by domain and by zone are provided in Table 14-13 and Table
14-14 respectively.
TABLE 14-13 COMPOSITE STATISTICS BY DOMAIN

Uncapped Capped Avg.

g/t Au g/t Au Length
Domain Count Mean Std. Dev. Mean Std. Dev. (m)
1 692 0.028 0.081 0.025 0.058 2.95

2 1,902 0.145 0.714 0.130 0.327 2.97
3 3,718 0.272 1.008 0.242 0.411 2.99
4 14,941 0.471 1.620 0.445 0.927 2.99
10 22 0.008 0.003 0.008 0.003 2.86
Totals 21,275 0.393 1.443 0.367 0.812 2.99
Note: All missing assays have been set to 0 before compositing.

TABLE 14-14 COMPOSITE STATISTICS BY ZONE

Uncapped Capped Avg.

g/t Au g/t Au Length
Zone (Code) Count Mean Std. Dev. Mean Std. Dev. (m)
North Zone (1) 4,694 0.377 1.270 0.352 0.692 2.99

South Zone (5) 5,207 0.368 1.074 0.352 0.796 2.99
SW Zone (6) 531 0.308 0.816 0.282 0.558 2.99
S Ext. Zone (3) 5,865 0.442 2.064 0.394 0.849 2.99
Cardoso (4) 4,978 0.384 1.042 0.374 0.905 2.98
Totals (1-6) 21,275 0.393 1.443 0.367 0.812 2.99
Note: All missing assays have been set to 0 before compositing.
BLOCK MODEL AND GRADE ESTIMATION PROCEDURES
DIMENSIONS & CODING
The original block model for Tres Cruces provided by Barrick is rotated 30 degrees
clockwise from north (N30E). The block dimensions are 10 m east-west (rotated), 10 m
north-south (rotated), and 10 m high. L&A has maintained the model orientation and
block dimensions as supplied to facilitate direct comparison with the Barrick model.
Details on block model dimensions and extent can be found in Table 14-15.
TABLE 14-15 BLOCK MODEL DIMENSIONS & EXTENT

Item Min Max Size Number
X (Rotated) 0 2,000 10 200

Y (Rotated) 0 2,300 10 230
Z (Rotated) 0 500 10 50
Origin: Easting 787,700 m

Northing 9,112,000 m
Elevation 3,700 m
Rotation Y Axis about Z Axis +30 Deg (Clockwise)
Rotated Y Axis about Rotated X 0 Deg
Rotated X About Rotated Y 0 Deg
Note: Rotations are MEDS/Vulcan convention (ZXY: LRL).

Each block has been assigned unique numeric codes for zone, domain, lithology and
alteration that match the assay and composite coding scheme. Grades were estimated
for only those blocks falling at least partially within one of the five zones.
VARIOGRAM MODELS
The variogram models utilized by L&A are summarized in Table 14-16 and depicted
graphically in Appendix 2. Other than for the vertical orientation, which was basically
down hole, the variograms contained very few pairs for lag distances less than 30 m.
This is primarily due to the regular drill spacing within the deposit, which rarely falls
below 40 m between the EW section lines. This posed some difficulty in developing
models in which the sloped portions of the curves contained sufficient data to determine
ranges with a high degree of confidence; however, it is believed that the models are
reasonable, if not somewhat conservative. More drilling within the core of the deposit
would aid in refining these models as well as help in the design of future drilling
programs. Domains 1 and 2 were not modeled due to the paucity of data. These
domains were assigned the average ranges noted for Domains 3 and 4, which contain
most of the mineralization of economic interest.
TABLE 14-16 AU VARIOGRAM MODELS

Model Nugget Sill Range (m)

Metal/Zone Type (C0) (C0+C1) Rotation Major Minor Vertical
Domain 1 (Overburden, Sedimentary Volcanics)

All Zones Sph. 0.25 1.0 None 60 60 30
Domain 2 (Dacite/Rhyolite/Andesite with Kaolinite/Opaline alteration)
All Zones Sph. 0.25 1.0 None 60 60 30
Domains 3 & 4 (Dacite/Rhyolite/Andesite with Illite/Smectite alteration)
North (1) Sph. 0.35 1.0 MEDS 10/-10/20 60 40 30
South (5) Sph. 0.30 1.0 MEDS 0/20/-30 70 50 30
SW (6) Sph. 0.25 1.0 MEDS 0/20/20 60 60 20
S Ext (3) Sph. 0.25 1.0 MEDS 40/-10/20 40 60 30
Cardoso (4) Sph. 0.25 1.0 MEDS 45/0/-80 40 60 20
Notes: MEDS Rotations: ZXY LRL

st
1 rotation is about Z axis (+ is clockwise).
nd
2 rotation is about new X axis (- is down).
rd
3 rotation is about new Y axis (- is down).

GRADE INTERPOLATION
Two grade models were developed by L&A. The first model utilized a grade envelope to
constrain the interpolation of higher-grade mineralization within a boundary created by
indicator kriging at a 0.2 g/t Au cut-off. Grade estimates were made outside the
boundary as well, but only those composites that also fell outside the boundary were
used. This methodology was similar to that used by Barrick, although Barrick utilized
inverse distance cubed in the actual grade interpolation. Estimates for the second grade
model produced by L&A were not constrained by the boundary.
Ordinary Kriging (OK) was utilized to interpolate Au grades into each block. Only
composites with domain codes that matched the block codes were used in grade
estimates. Grade estimates for domain codes 1 and 2 were interpolated in separate
runs while codes 3 and 4 were interpolated together. The minimum and maximum
numbers of composites were set at 4 and 16, respectively, while the maximum number
of composites per hole was set at 4. The latter guaranteed that at least one hole and a
maximum of 4 holes were used in the grade estimates for each block. The composite
selection strategy employed by L&A during grade interpolation runs utilized a single pass
ellipsoidal search, the dimensions of which were based on the range of the 3D variogram
models summarized in Table 14-16. Maximum search distances were twice the
modeled variogram ranges for the major and intermediate axes while the search along
the minor axis (rotated z) was held to 15 m. The shortened search along the minor axis
was employed to minimize cross-structure grade smearing, particularly near the end of
the holes. The searches were orientated along the rotated major (y), minor (x), and
vertical (z) axes of the variograms modelled for Au. Grade estimates were made using
only those composite values derived from the capped assays.
SPECIFIC GRAVITY
Specific gravity (SG) values, used to convert volumes to weights, were based on wet
and dry measurements of core from over 2,700 samples. In this method, density is
calculated as the weight of the dry sample in air divided by the difference between the
weight of the dry sample in air and the weight of the sample suspended in water. Values
were derived for each lithology listed in Table 14-9, however SGs for codes 1, 2, 3, 4
and 8 are based on very few or no measurements. All samples above or below three

standard deviations from the mean were excluded before the final averages were
computed. Results are summarized in Table 14-17.
TABLE 14-17 DENSITY MEASUREMENTS

SG Measurement
. Average
Lithology (Code) Count Min Max Std. Dev. Initial Final
Andesite Tuff (1) 3 2.26 2.39 0.07 2.31 2.31

Dacite Tuff (2) 1 2.31 2.31 2.31 2.31
Indeterminate Tuff (3) 7 1.83 2.16 0.13 2.01 2.00
Pyroclastic Sequence (4) 2.13
Pyroclastic/Dacite Sequence (5) 579 1.72 2.65 0.17 2.26 2.27
Pyroclastic/Andesite Flow Seq. (6) 1,919 1.77 3.33 0.13 2.37 2.37
Volcanic Sediments (7) 77 1.82 2.41 0.13 2.13 2.13
Andesite Flow (8) 2.37
Andesite (9) 132 2.24 2.79 0.09 2.46 2.45
Note: Final average after rejection of outliers (>3sds from the mean).
RESOURCE TABULATIONS
Application of the methodology described in the preceding sections resulted in the
mineral resource estimates contained in Table 14-18 through Table 14-22. L&A has
based the estimate on the model created by OK using the 0.2 g/t Au grade envelope
discussed previously to constrain the interpolation. Cross-sections of the block models
are provided in Appendix 3. The classification system is discussed under a separate
heading. Note that while tabulations have also been provided at increasing g/t Au cut-
offs, it is L&As opinion that a 0.6 g/t Au cut-off would be appropriate for the reporting of
the estimates. Those resources located on Barrick-owned claims are excluded from the
tabulations.

TABLE 14-18 MINERAL RESOURCES

Measured
North Zone (1) 1,014 1.23 40
South Zone (5) 2,864 1.60 147
SW Zone (6) 287 1.98 18
S Ext. Zone (3) 796 1.44 37
Cardoso (4) - - -
Total Measured 4,961 1.52 242
Indicated
North Zone (1) 7,730 1.06 263
South Zone (5) 17,662 1.24 703
SW Zone (6) 17,562 1.29 728
S Ext. Zone (3) 18,114 1.15 671
Cardoso (4) - - -
Total Indicated 61,068 1.20 2,365
Measured + Indicated
North Zone (1) 8,744 1.08 304
South Zone (5) 20,525 1.29 850
SW Zone (6) 17,849 1.30 746
S Ext. Zone (3) 18,910 1.16 708
Cardoso (4) - - -
Total Meas + Ind 66,029 1.23 2,608
Inferred
North Zone (1) 646 0.74 15
South Zone (5) 10,149 0.98 319
SW Zone (6) 2,324 0.83 62
S Ext. Zone (3) 4,123 1.07 142
Cardoso (4) 2,310 0.98 73
Total Inferred 19,552 0.97 611
Notes:
2. Mineral Resources are reported at a cut-off grade of 0.6 g/t Au

TABLE 14-19 MEASURED MINERAL RESOURCES, AU CUT-OFF TABLE


0.2 7,294 1.17 274
0.3 6,956 1.21 272
0.4 6,339 1.30 265
0.5 5,655 1.40 255
0.6 4,961 1.52 242
0.7 4,428 1.63 231
0.8 3,988 1.72 221
0.9 3,590 1.82 210
1.0 3,243 1.91 199
Notes:
TABLE 14-20 INDICATED MINERAL RESOURCES, AU CUT-OFF TABLE


0.2 127,837 0.79 3,247
0.3 115,824 0.85 3,151
0.4 97,215 0.94 2,940
0.5 77,692 1.06 2,658
0.6 61,068 1.20 2,365
0.7 49,079 1.34 2,116
0.8 40,514 1.47 1,910
0.9 33,778 1.59 1,726
1.0 28,524 1.71 1,566
Notes:

TABLE 14-21 MEASURED + INDICATED MINERAL RESOURCES, CUT-OFF TABLE


0.2 135,131 0.81 3,522
0.3 122,781 0.87 3,422
0.4 103,554 0.96 3,204
0.5 83,347 1.09 2,913
0.6 66,029 1.23 2,608
0.7 53,508 1.36 2,347
0.8 44,502 1.49 2,131
0.9 37,368 1.61 1,936
1.0 31,766 1.73 1,766
Notes:
TABLE 14-22 INFERRED MINERAL RESOURCES, AU CUT-OFF TABLE


0.2 60,119 0.57 1,103
0.3 47,644 0.66 1,006
0.4 37,350 0.74 890
0.5 26,989 0.85 741
0.6 19,552 0.97 611
0.7 14,345 1.09 502
0.8 10,529 1.21 411
0.9 8,119 1.32 345
1.0 6,255 1.43 289
Notes:
CUT-OFF GRADE
No definitive plans have been formulated for Tres Cruces. The bulk of the deposit is
unoxidized and exhibits marginal recoveries on fresh rock using traditional cyanidation.

Preliminary concepts envision the production of a flotation concentrate which would be

treated in a POX circuit to oxidize the sulphides, allowing subsequent extraction by
cyanidation. The flotation tailings would also be subjected to cyanidation. Options for
the POX facility include shipment to an existing plant offsite, or the construction of a
stand-alone or shared facility near Tres Cruces and Barricks Lagunas Norte. The onsite
option, although capital intensive, provides a distinct transportation advantage as well as
the ability to produce higher-mass concentrates that can be fed directly to the POX plant.
Metallurgical test work completed to date has demonstrated that a combined
CIL/flotation recovery of 85% to plus 90% is possible. After factoring losses in the POX
plant, an overall recovery of 82% has been projected. For the purpose of calculating the
cut-off grade for reporting, the onsite option has been assumed. Based on a production
rate of 7,500 tonnes per day, a total property cost of $25/tonne ore and $2/tonne waste
has been estimated. Using a price of $1,500/oz. Au and 82% recovery, the break-even
cut-off grade is calculated as follows:
Cut-off g/t Au = (Unit Ore Cost Unit Waste Cost)/Value/g Au

Where Ore Cost = US$25/t
Waste Cost = US$2/t
Value/g Au = $1,500*(100%-5.5%Royalty)/31.1035*82%*Recovery=$37.4
Cut-off = (25-2)/37.4= 0.6 g/t Au
This calculation should be revisited once more definitive process performance and costs
have been developed. Note that for oxidized material, the cut-off would be lower
however this material represents only a small portion of the overall deposit.
PIT OPTIMIZATON

prospects of economic extraction, L&A evaluated the resource using pit optimization
software (Lerchs-Grossmann algorithm). For the purposes of this evaluation, a pit wall
slope of 45 was used. Cost and revenue parameters were adjusted marginally from
those used for cut-off calculations. The overall Au recovery was increased from 82% to
85% since the process has not been finalized and flowsheet optimization will likely yield
better performance. As well, given the large tonnage estimated at the 0.6 g/t Au cut-off,
a much higher production rate is probable. Accordingly, L&A has reduced overall ore

costs by 10% (to $22 per tonne), although a lower cost is likely. Finally, as noted
previously, significant silver credits are possible but have not been recognized in
economic calculations.
L&A ran optimizations using measured, indicated, and inferred resources. Table 14-23
tabulates the measured plus indicated mineral resources contained within the final
optimized pit shell at increasing cut-offs.
TABLE 14-23 MEASURED/INDICATED MINERAL RESOURCES WITHIN PIT SHELL


0.2 100,862 0.94 3,049
0.3 94,934 0.98 3,001
0.4 85,814 1.05 2,897
0.5 74,424 1.14 2,733
0.6 62,298 1.26 2,518
0.7 51,744 1.38 2,298
0.8 43,591 1.50 2,103
0.9 36,917 1.62 1,921
1.0 31,500 1.73 1,755
Notes:
At the 0.6 g/t Au cut-off grade, the difference between the estimated contained Au gold
metal in the optimized pit shell and that contained within full resource is less than 4%.
The difference appears to be due in part to a lack of drilling at depth and along the
peripheries, although grade and depth are also contributing factors. On the basis of
these findings, it is L&As opinion that there is little merit in restricting the reported
mineral resources to those contained only within the pit shell at this time although this
issue will have to be revisited once more definitive cost and performance parameters
have been developed. Accordingly, the mineral resource inventory has been reported in
its entirety.

MODEL VALIDATION
As part of the block model validation process, kriged grade estimates were also
produced without constraining the interpolation by the 0.2 g/t Au grade envelope.
These estimates are provided in Table 14-24 and Table 14-25 for comparison purposes.
As expected, the unconstrained estimates are higher in metal content and tonnage at
lower cut-offs while the converse is true at higher cut-offs.
TABLE 14-24 UNCONSTRAINED ESTIMATES, INDICATED MINERAL RESOURCES


0.2 172,718 0.66 3,661
0.3 131,632 0.79 3,333
0.4 99,559 0.93 2,975
0.5 76,723 1.07 2,647
0.6 60,266 1.22 2,358
0.7 48,484 1.36 2,113
0.8 40,014 1.48 1,909
0.9 33,453 1.61 1,731
1.0 28,211 1.73 1,571
Notes:
2. Mineral Resources are reported at a cut-off grade of 0.6 g/t Au,
TABLE 14-25 UNCONSTRAINED ESTIMATES, INFERRED MINERAL RESOURCES


0.2 99,416 0.43 1,381
0.3 61,425 0.55 1,081
0.4 38,203 0.67 824
0.5 24,595 0.80 629
0.6 16,705 0.91 491
0.7 11,669 1.03 386
0.8 8,037 1.16 299
0.9 5,900 1.27 241
1.0 4,318 1.39 193
Notes:

Gold deposits are often modeled using indicator or outlier kriging to limit the influence of
higher-grade samples at a distance. Another common practice is to use a grade
envelope to restrict the interpolation outside the envelope to that data which also resides
outside but allow the interpolation inside the envelope to use data inside or outside, as
long as it falls within the prescribed search distances. This has the effect of producing a
more gradational boundary with lower overall metal content within the envelope. L&A
produced such an estimate by using the results of the unconstrained model for blocks
inside the envelope but retaining the results from the constrained model for blocks
outside the envelope. This is summarized in Table 14-26 and Table 14-27 .
The combined model is approximately 5% lower in metal content than the unconstrained
model and serves to demonstrate the differences that can result with a subtle change in
modeling methodology. If a more conservative approach is desired, Oroperu may wish
to consider using the results in Table 14-26 and Table 14-27 for reporting purposes.

TABLE 14-26 COMBINED UNCONSTRAINED/CONSTRAINED ESTIMATES,

INDICATED MINERAL RESOURCES

0.1 184,285 0.58 3,421
0.2 133,811 0.74 3,200
0.3 112,676 0.84 3,029
0.4 89,577 0.96 2,770
0.5 70,812 1.10 2,500
0.6 56,434 1.24 2,247
0.7 45,847 1.38 2,027
0.8 38,206 1.50 1,843
0.9 32,117 1.62 1,677
1.0 27,240 1.75 1,529
Notes:
3. Unconstrained values used inside the 0.2 g/t Au envelope, constrained block values outside.
TABLE 14-27 COMBINED UNCONSTRAINED/CONSTRAINED ESTIMATES,

INFERRED MINERAL RESOURCES

0.1 115,492 0.31 1,151
0.2 58,862 0.48 903
0.3 40,839 0.58 760
0.4 27,832 0.69 615
0.5 18,965 0.80 488
0.6 13,140 0.91 386
0.7 9,125 1.03 303
0.8 6,306 1.16 235
0.9 4,669 1.27 190
1.0 3,380 1.39 151
Notes:
3. Unconstrained block values used inside the 0.2 g/t Au envelope, constrained values outside.

In addition to producing parallel estimates of grade, L&A conducted a series of point

validation exercises for Au where the grade at each composite location is estimated from
the surrounding composite data by kriging (using the variogram models produced by
L&A) and inverse distance methods and compared to the actual composite values at
those locations. Results for the South Zone (5) are shown in Table 14-28. In all, 502
points (max 100 m to closest neighbouring composite, 150 m to farthest) were estimated
for SDS Zone 1. Although kriging did not model the extremes as well due to the nugget,
the mean values are closer to the actual sample values when compared to IDW (1,2,3).
TABLE 14-28 AU POINT VALIDATION, SZ (5) COMPOSITES

g/t Au
Item IDW Mean Std. Dev. Min Max Median
Power
ACTUAL N/A 0.508 0.917 - 6.300 0.078
KRIGING N/A 0.500 0.700 0.003 4.111 0.100
1ST IDW 1 0.490 0.674 0.003 3.737 0.097
2ND IDW 2 0.495 0.723 0.003 4.493 0.099
3RD IDW 3 0.499 0.767 0.003 5.024 0.098
4TH IDW 4 0.501 0.800 0.003 5.295 0.099
5TH IDW 5 0.502 0.825 0.003 5.654 0.095
ID3 is often used as an alternative to kriging because grade estimates for blocks that are
very close to a composite generally show good agreement with the composite values,
while block grade estimates between composites are not overly smoothed like those for
inverse distance (ID1) and inverse distance squared (ID2). A power of 4 or higher
generally produces grade estimates similar to polygonal models, as can be observed in
the reported standard deviations in Table 14-28.
L&A also analyzed the point validation results for ID3 and kriging by linear regression.
As can be seen in Table 14-29, although the results are less than ideal, kriging shows
marginally better results with a higher correlation coefficient, a lower intercept value, and
a slope closer to 1. A perfect linear correlation would have a 0 Y intercept and a slope of
1. The average distance from an indicated block to the 4 closest holes in Zone 5 is 44
m. A closer drill spacing would likely yield better results, highlighting the need for tighter-
spaced drilling before reliable short-term production plans can be formulated.

TABLE 14-29 AU POINT VALIDATION, SZ (5), REGRESSION ANALYSIS

Far West Mining Ltd. Santo Domingo Property
ITEM IDW Power Intercept Slope Correlation

A B Coefficient
3RD IDW 3 0.1291 0.6602 0.6474
KRIGING N/A 0.0966 0.7211 0.6617
3
Note: Y=A+BX where Y is Actual, X is ID or Kriging
CLASSIFICATION
CIM definitions (December 11, 2005) were followed for the classification of the mineral
resources. L&A analyzed the drill spacing within the modelled areas of Tres Cruces by
estimating the average distance of the 4 closest composites to a block as well as the
distance to the closest composite. A common approach is to use a threshold for the
maximum distance of 1/2 to 2/3 the variogram range in order to classify a particular area
as indicated and 1/4 to 1/3 the range for measured. Based on the variogram models
developed by L&A, the required distance would have to be less than 30 m (1/2 range) to
40 m (2/3 range) along the major axis in order to meet the threshold for indicated.
L&A has classified all blocks in the five zones of Tres Cruces within 40 m of a matching
composite as indicated, provided that the average distance to the 4 closest drill holes in
the area is less than 60 m. Grade shells were created with these maximum distances
and reviewed in 3D and any isolated blocks rejected from the indicated category. All
remaining blocks where the closest composite is within 80 m of a matching composite is
classified as inferred, provided at least 2 holes were found within 120 m. These
distances are based on the rotated major and intermediate axes. Distances were not
adjusted according to the anisotropy although differences in ranges along the major and
intermediate axes are not great.
An analysis of composite and drill hole distances is provided in Table 14-30. The drill
hole spacing is sufficient to classify most blocks within the core of the drilling for each
zone as indicated. The inferred portion in Tres Cruces occupies the fringes of the zones,
at depth where a number of holes failed to penetrate the deeper areas, as well as
portions of the deposit where the drilling is too widely spaced (ie. Cordozo) to meet the
threshold for indicated.

TABLE 14-30 ANALYSIS OF DRILL SPACING

Indicated
Average Distance (m)
Zone (Code) Closest 4 Closest Indicated
Composite Drillholes % of Total Tonnes
North Zone (1) 22.4 44.4 48%
South Zone (5) 22.5 45.0 49%
SW Zone (6) 22.9 43.8 50%
S Ext. Zone (3) 22.4 45.4 52%
Cardoso (4) - - 0%
Indicated Avg. 22.6 44.6 49%
Inferred
Average Distance (m)
Zone (Code) Closest 2 or More Closest Inferred
Composite Drillholes % of Total Tonnes
North Zone (1) 46.9 65.8 52%
South Zone (5) 48.4 73.1 51%
SW Zone (6) 49.2 73.4 50%
S Ext. Zone (3) 43.1 63.5 48%
Cardoso (4) 33.5 49.1 100%
Inferred Avg. 46.8 68.8 51%
Note:
1. Based on Indicated and Inferred tonnage at 0 g/t Au cut-off.
2. The proportion of inferred decreases as the cut-off increases.

23 ADJACENT PROPERTIES
According to the concession maps and data generally available on the internet, there are
four important gold deposits within close proximity to the Tres Cruces Property. These
are mainly high-sulphidation epithermal systems hosted in Tertiary volcanics or in the
lowermost formation of the Gollar Group (Chimu quartzites), or in both. These deposits
are: Lagunas Norte (+9million oz gold); Virgen Deposit (400,000 oz); La Arena (1.99
million oz); and Santa Rosa Mine (currently producing approximately 80,000 oz/Au/year).
The Tres Cruces Concessions adjoin Pan Americans Quiruvilca Mine concessions to
the northwest and Barricks Lagunas Norte concessions to the northeast.
L&A has been unable to verify the information, and the information is not necessarily
indicative of the mineralization on the property that is the subject of the technical report.

24 OTHER RELEVANT DATA AND

INFORMATION
No additional information or explanation is necessary to make this Technical Report
understandable and not misleading.

25 INTERPRETATION AND CONCLUSIONS

holes completed since the unpublished 2008 estimate by Barrick. The following
interpretations and conclusions are made by L&A regarding the estimates:
1. Measured plus Indicated mineral resources are estimated to contain 66.0 million
tonnes grading 1.23 g/t Au for a total of 2.6 million oz of contained Au metal.
Inferred mineral resources are estimated at 19.6 million tonnes grading 0.97 g/t
Au or 0.6 million contained oz Au. These estimates are reported at a 0.6 g/t Au
cut-off, which is considered appropriate for the deposit at current long-term
average metal prices.
2. CIM definitions were followed for the classification of mineral resources. The
estimate is based on the assay results from 359 drill holes. The average
distance from a block classified as indicated to the 4 closest holes is 45m. For
inferred, the average distance to the closest 2 or more holes used to estimate the
grades is 69 m. The Cardoso Zone is the least densely drilled and contains only
inferred mineral resources. Those mineral resources classified as indicated are
located within the core of the drilling, while the inferred mineral resources are
located along the periphery and at depth where spacing is insufficient to include
in higher-confidence categories.
3. Additional potential exists to increase the size of the resource through further
drilling. In particular, there are very few holes that have been drilled sufficiently
deep to assess the true potential at depth, including the possibility for higher-
grade bonanza-style mineralization.
4. The estimated Au grades compare well with the average assay and composite
grades observed in statistical analyses of data. As well, estimates are close to
those produced by Barrick in terms of total Au metal, although grades are lower
and the model contains higher tonnage and metal content at lower cut-offs and
lower tonnage and metal content at higher cut-offs than the Barrick estimate.
This is largely due to the differences in methodology. Barrick used larger
composites, fewer drill holes, and inverse distance weighting (cubed) to estimate
the grades in their model.
5. In order to satisfy the requirements of NI 43-101 that a resource has reasonable

prospects of economic extraction, L&A evaluated the resource using pit
optimization software. At the 0.6 g/t Au cut-off grade, the difference between the
indicated mineral resource Au metal content in the optimized pit shell and that
contained within the full resource is less than 4%, which is not considered
material. On the basis of these findings it is concluded that there is little merit in
restricting the reported mineral resources to those contained only within the pit
shell at this time although this issue will have to be revisited once more definitive
cost and performance parameters have been developed. Accordingly, the
mineral resource inventory has been reported in its entirety.

6. No estimate has been made by L&A for Ag although significant potential for value
exists at current Ag prices. The model supplied by Barrick also did not contain
an estimate for Ag. There is not a very good correlation between Ag and Au but
the average Ag to Au ratio of is approximately 3:1 based on over 43,200 intervals
assayed for both metals. For Au values above 0.6 g/t Au, the ratio is
approximately 2:1.
7. While metallurgical testing is by no means definitive at this point and requires

further work, a baseline recovery of about 85% of the contained Au has been
established for oxide mineralization while testing has indicated that plus 80%
recoveries are possible for sulphide components of the mineralization, producing
concentrates of sufficiently low mass and high grade to allow shipping of the
concentrates offsite for treatment.
8. Au recoveries do not necessarily depend on sulphur content. Those samples

with both high Au recovery and S content are primarily derived from shallower
depths while those with lower recoveries are from deeper intervals. It is probable
that in those samples exhibiting higher recoveries, some or potentially all of the
sulphur occurs in sulfate minerals (oxide state) versus sulphides. Those samples
from the upper reaches of the deposit that have very low sulphur content may
have been completely leached of sulphur following oxidation or gold deports as
free grains.
9. Given the size of the Tres Cruces resource, the best option may be to construct a
facility at or near Tres Cruces and Lagunas Norte that would allow oxidative pre-
treatment of flotation concentrates, eliminating the costly option of shipping
concentrates.

26 RECOMMENDATIONS
The following recommendations are made by L&A:
1. Given the potential economic contribution from Ag recovered in the metallurgical

processes, future mineral resource estimates should include Ag. This may
require additional assaying as not all sampled intervals contain a value for Ag.
2. Efforts should be directed toward developing a more cohesive model for the
distribution of sulphide mineralization within the deposit. From a metallurgical
perspective, sulphide mineralization is currently defined as that material with a S
content greater or equal to 2.5% although it has been indicated that not all S is in
the form of sulphides.
3. Ongoing metallurgical investigations should include review of onsite options for

oxidative pre-treatment of flotation concentrates.
4. Further effort should be directed toward exploring the potential for higher-grade
mineralization at depth as well as delineating the full extent of known
mineralization.

27 REFERENCES
Bartos, P.J, 1987, Quiruvilica, Peru: Mineral Zoning and Timing of Wall-Rock Alteration
Relative to Cu-Pb-Zn-Ag Vein-Fill Deposition, Economic Geology vol. 82, pp 1431-
1452.
Battle Mountain Gold Corporation, 1999, Tres Cruces Project Peru; Project Summary
November 98 to November 99, Unpublished internal report, November 1999.
Battle Mountain Gold Corporation, 1999, Bio-oxidation Project, Tres Cruces

September Metallurgical Update, Unpublished internal memorandum, September 17,
1999.
Cooper, P., 1999, Report on Tres Cruces Resource Modeling: Battle Mountain Gold,
Unpublished internal report, July 30, 1999.
Green, D., 2009, Preliminary Analysis of Tres Cruces Metallurgy and Proposal for
Additional Work, Internal Oroperu memorandum to Livingstone, K.W.; March 26,
2009.
Green, D., 2009, Preliminary Analysis of Tres Cruces Metallurgy Part 2 (revised),
Internal Oroperu memorandum to Livingstone, K.W.; June 12, 2009.
Hedenquist, J.W., Izawa, E., Arribas, A., and White, N.C., 1996, Epithermal gold
deposits: Styles, characteristics, and exploration: Resource Geology Special
Publication 1, The Society of Resource Geology, 16 pp.
Heyl, D.V, and Livingstone, W., 1998, The Tres Cruces Low Sulfidation Disseminated
Gold Deposit, La Libertad, Peru. Confernce Explormin 98, Lima Peru.
Lyons, E.M., 1999, Tres Cruces Project: Geology & Regional Setting: Battle Mountain
Gold, Surcusal del Peru.
Minera Barrick Misquichilca S.A, 2008, Extraccin de Au y Ag para minerales de Tres

Cruces, Unpublished internal memorandum, October 31, 2008.
Minera Barrick Misquichilca S.A, 2008, RV: Reporte preliminar de pruebas CIL de
minerales de TC, Unpublished internal memorandum, November 12, 2008.
Minera Barrick Misquichilca S.A, 2007, TC Geology & Sampling 2007, Sections 8-15,
Unpublished internal report.
Minera Barrick Misquichilca S.A, 2006, Reporte QAQC Programa Sondajes Tres Cruces
2006 QC Mina Lagunas, Unpublished internal memorandum, April 2006.
Minera Barrick Misquichilca S.A, 2008, Reporte Final QAQC Programa Sondajes 2007,
Proyecto Tres Cruces, February 2008.
Reeder, J., and McCrea, J.A., 2002, Summary Report on the Tres Cruces Property,
prepared for New Oroperu Resources Inc., July 25, 2002.

Sillitoe, R.H., 1987, Comparative Anatomy of Volcanic -Hosted Epithermal Deposits:

Acid-Sulfate and Adularia Sericite Types Economic Geology, vol 82, 1987, pp. 1-26
Smee and Associates Consulting Ltd.; 2008, A Review of Quality Control Methods,
Quality Control Data, Field Measurements and Drill Core Sampling Protocol, Tres
Cruces Project, Alto Chicama Area, Peru, prepared for Minera Barrick Misquichilca
S.A., Unpublished report, March 2008.
White, N.C. and Hedenquist, J.W. (1990) Epithermal Environments and Styles of
Mineralization: Variations and their Causes, Guidelines for Exploration, Journal of
Geochemical Exploration, 36 (1990) pp. 445-474

DATE AND SIGNATURE PAGE

This report titled Technical Report on the Tres Cruces Project, North Central Peru and
dated September 28, 2012 was prepared and signed by the following author:
(Signed & Sealed)
Dated at Surrey, BC
September 28, 2012 Peter A. Lacroix, P.Eng.
Principal

CERTIFICATE OF QUALIFIED PERSON

PETER A. LACROIX, P.ENG.
I, Peter A. Lacroix, P.Eng., as author of this report entitled Technical Report on the Tres
Cruces Project, North Central Peru prepared for New Oroperu Resources Inc., and
dated September 28, 2012, do hereby certify that:
1. I am the principal and owner of Lacroix & Associates of 1931 128 Street, Surrey,
British Columbia V4A 3V5 Canada.
2. I am a graduate of University of Alberta in 1983 with a Bachelor of Science in Mining

Engineering, with Distinction.
3. I am registered as a Professional Engineer in the Province of British Columbia

(Reg.#22528). I have worked as a mining engineer for a total of 29 years since my
graduation. My relevant experience for the purpose of the Technical Report is:
Mineral Resource and Reserve estimation, mine planning, feasibility studies,

economic analysis, due diligence, independent review and audit on numerous
mining projects and operations world wide.
Various engineering and mining-related positions at three Canadian mines.
Various senior positions at the corporate offices of a middle tier base metal and
gold producer including Manager Engineering, Manager Operations and Manager
Acquisitions & Project Development.
Principal Mining Consultant for two international consulting firms.
Associate Mining Consultant for various mining consulting firms on numerous
mining projects and operations world wide.
Principal, Lacroix & Associates, an independent wholly-owned mining consulting
firm providing mining consulting services since 1997.
4. I have read the definition of "qualified person" set out in National Instrument 43-101
(NI43-101) and certify that by reason of my education, affiliation with a professional
association (as defined in NI43-101) and past relevant work experience, I fulfill the
requirements to be a "qualified person" for the purposes of NI43-101.
5. I visited the Tres Cruces project on May 11, 2011.
6. I am responsible for overall preparation of the Technical Report.
7. I am independent of the Issuer applying the test set out in Section 1.4 of National
Instrument 43-101.
8. I have had no prior involvement with the property that is the subject of the Technical
Report.
9. I have read National Instrument 43-101, and the Technical Report has been
prepared in compliance with National Instrument 43-101 and Form 43-101F1.

10. To the best of my knowledge, information, and belief, the Technical Report contains
all scientific and technical information that is required to be disclosed to make the
technical report not misleading.
Dated 28th day of September, 2012]
(Signed & Sealed)
Peter A. Lacroix, P.Eng.

APPENDIX 1 - PROBABILITY DISTRIBUTION

PLOTS






APPENDIX 2 - VARIOGRAM MODELS






APPENDIX 3 - BLOCK MODEL CROSS SECTIONS
New Oroperu Resources Inc. Tres Cruces Project Page 121

Technical Report NI 43-101 September 28, 2012



























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Lacroix & Associates

TECHNICAL REPORT ON THE TRES

Report for NI 43-101

September 28, 2012

New Oroperu Resources Inc. Tres Cruces Project

New Oroperu Resources Inc. Tres Cruces Project

New Oroperu Resources Inc. Tres Cruces Project

L&A has had no prior involvement in the Project.

New Oroperu Resources Inc. Tres Cruces Project

In order to satisfy the requirements of NI 43-101 that a resource has reasonable

New Oroperu Resources Inc. Tres Cruces Project

While metallurgical testing is by no means definitive at this point and requires

Au recoveries do not necessarily depend on sulphur content. Those samples

Given the potential economic contribution from Ag recovered in the metallurgical

Ongoing metallurgical investigations should include review of onsite options for

New Oroperu Resources Inc. Tres Cruces Project

New Oroperu Resources Inc. Tres Cruces Project

New Oroperu Resources Inc. Tres Cruces Project

District. Cretaceous sedimentary rocks belonging to the Goyllarisquizga Group and

New Oroperu Resources Inc. Tres Cruces Project

TABLE 1-1 MINERAL RESOURCE ESTIMATES

Measured plus Indicated

New Oroperu Resources Inc. Tres Cruces Project

L&A has had no prior involvement in the Project.

New Oroperu Resources Inc. Tres Cruces Project

New Oroperu Resources Inc. Tres Cruces Project

micron kPa kilopascal

New Oroperu Resources Inc. Tres Cruces Project

3 RELIANCE ON OTHER EXPERTS

Information available to L&A at the time of preparation of this report,

New Oroperu Resources Inc. Tres Cruces Project

4 PROPERTY DESCRIPTION AND LOCATION

New Oroperu Resources Inc. Tres Cruces Project

TABLE 4-1 TRES CRUCES MINERAL CONCESSIONS

Name Entry Code Hectares

All exploration expenditures deemed necessary by Barrick to make a production decision

New Oroperu Resources Inc. Tres Cruces Project

FIGURE 4-1 LOCATION MAP - PERU

New Oroperu Resources Inc. Tres Cruces Project

FIGURE 4-2 LOCATION MAP LA LIBERTAD DEPARTAMENT

New Oroperu Resources Inc. Tres Cruces Project

FIGURE 4-3 CONCESSION AND PROPERTY MAP

New Oroperu Resources Inc. Tres Cruces Project

5 ACCESSIBILITY, CLIMATE, LOCAL

New Oroperu Resources Inc. Tres Cruces Project

New Oroperu Resources Inc. Tres Cruces Project

New Oroperu Resources Inc. Tres Cruces Project

New Oroperu Resources Inc. Tres Cruces Project

7 GEOLOGICAL SETTING AND

New Oroperu Resources Inc. Tres Cruces Project

FIGURE 7-1 REGIONAL GEOLOGY

New Oroperu Resources Inc. Tres Cruces Project

LOCAL AND PROPERTY GEOLOGY

New Oroperu Resources Inc. Tres Cruces Project

New Oroperu Resources Inc. Tres Cruces Project

FIGURE 7-2 DRILL HOLE LOCATIONS AND PROPERTY GEOLOGY

New Oroperu Resources Inc. Tres Cruces Project

The dominant sulphide mineral is pyrite. Accessory sulphide minerals consist of

New Oroperu Resources Inc. Tres Cruces Project

Alteration in the mineralized area is predominantly illite-buddingtonite in the South Zone.

Mineralization in the North Zone is hosted in andesitic volcaniclastics and hydrothermal

New Oroperu Resources Inc. Tres Cruces Project

SOUTH EXTENSION ZONE