Pea Inmaculada

TECHNICAL REPORT
AND
PRELIMINARY ECONOMIC ASSESSMENT
ON THE ANGELA VEIN
INMACULADA PROPERTY
AYACUCHO, SOUTHERN PERÚ
LATITUDE 14°57'27"S, LONGITUDE 73°14'42"W
FOR
INTERNATIONAL MINERALS CORPORATION
By
P&E Mining Consultants Inc.
NI-43-101 & 43-101F1

TECHNICAL REPORT No 189
Mr. James L. Pearson, P. Eng.

Mr. Eugene Puritch, P. Eng.
Mr. Alfred Hayden, P. Eng.
Mr. Ernest Burga, P. Eng.
Mr. David Orava, P. Eng.
Mr. Harnam Trehin, P. Eng.
Mr. David Burga, P. Geo.
Mr. Rafael Dávila, P. Eng.
Mr. R. Mohan Srivastava, P. Geo.
Effective Date: September 9, 2010

Signing Date: October 22, 2010
IMPORTANT NOTICE
This report was prepared as a National Instrument 43-101 Technical Report, in accordance with
Form 43-101F1, for International Minerals Corporation (“IMZ”) by P&E Mining Consultants
Inc. (“P&E”). The quality of information, conclusions and estimates contained herein is
consistent with the level of effort involved in the consulting services and based on: i) information
available at the time of preparation, ii) data supplied by outside sources, and iii) the
assumptions, conditions, and qualifications set forth in this report. This report is intended to be
used by IMZ subject to the terms and conditions of its contract with P&E. This contract permits
IMZ to file this report as a Technical Report with Canadian Securities Regulatory Authorities
pursuant to National Instrument 43-101, Standards of Disclosure for Mineral Projects. Any
other use of this report by any third party is at that party’s sole risk.
TABLE OF CONTENTS
SUMMARY..................................................................................................................................... i
EXECUTIVE SUMMARY ............................................................................................................ i

INTERPRETATIONS AND CONCLUSIONS ............................................................... i
RECOMMENDATIONS .................................................................................................. ii
ECONOMIC ANALYSIS ............................................................................................................ iv

ECONOMIC CRITERIA ................................................................................................ iv
PHYSICALS ......................................................................................................... iv
REVENUE ............................................................................................................ iv
COSTS .................................................................................................................... v
CASH FLOW .................................................................................................................... v
CASH FLOW ANALYSIS ............................................................................................. vii
SENSITIVITY ANALYSIS ............................................................................................ vii
TECHNICAL SUMMARY ......................................................................................................... ix

TENURE AND PROPERTY OWNERSHIP AND AGREEMENTS.......................... ix
HISTORY .......................................................................................................................... x
GEOLOGY ........................................................................................................................ x
MINERAL RESOURCES AND MINERAL RESERVES ........................................... xi
MINERAL RESOURCE ESTIMATES ............................................................. xi
SUMMARY OF CLASSIFIED MINERAL RESOURCES ............................ xii
MINEABLE MINERAL RESOURCE ESTIMATE ................................................... xii
MINING OPERATION ................................................................................................. xiii
MINERAL PROCESSING ........................................................................................... xiv
CAPITAL AND OPERATING COST ESTIMATES ................................................. xiv
1.0 INTRODUCTION AND TERMS OF REFERENCE .................................................... 1

1.1 TERMS OF REFERENCE .............................................................................................. 1
1.2 SITE VISITS...................................................................................................................... 3
1.3 UNITS AND CURRENCY ............................................................................................... 3
1.4 SOURCES OF INFORMATION..................................................................................... 3
1.5 GLOSSARY OF TERMS ................................................................................................. 3
2.0 RELIANCE ON OTHER EXPERTS .............................................................................. 7

3.0 PROPERTY DESCRIPTION AND LOCATION.......................................................... 8
3.1 LOCATION ....................................................................................................................... 8
3.2 PROPERTY OWNERSHIP AND AGREEMENTS ...................................................... 9
3.3 PROPERTY DESCRIPTION AND TENURE ............................................................. 11
3.4 PROPERTY BOUNDARIES ......................................................................................... 14
3.5 PERU’S MINING TITLE LAWS.................................................................................. 14
3.6 PERMITS......................................................................................................................... 15
3.7 SURFACE RIGHTS ....................................................................................................... 15
3.8 ENVIRONMENTAL LIABILITIES ............................................................................. 15
4.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES,

INFRASTRUCTURE AND PHYSIOGRAPHY .......................................................... 16
4.1 ACCESSIBILITY ........................................................................................................... 16
4.2 CLIMATE ........................................................................................................................ 16
4.3 LOCAL RESOURCES AND INFRASTRUCTURE ................................................... 16
4.4 PHYSIOGRAPHY .......................................................................................................... 16
5.0 HISTORY ........................................................................................................................ 17
6.0 GEOLOGICAL SETTING ............................................................................................ 18

6.1 REGIONAL GEOLOGY OF PERU ............................................................................. 18
6.2 PROPERTY GEOLOGY ............................................................................................... 19
6.3 GEOLOGY OF THE VEINS ON THE INMACULADA PROPERTY .................... 21
6.3.1 GEOLOGY OF THE QUELLOPATA VEINS ............................................ 21
6.3.2 GEOLOGY OF THE ANTA-PATARI VEINS ............................................ 21
6.3.3 GEOLOGY OF THE CASCARA-HUALLHUA VEINS ............................ 21
7.0 DEPOSIT TYPES ........................................................................................................... 23

7.1 EPITHERMAL AU-AG DEPOSIT CLASSIFICATION SYSTEMS ........................ 23
7.2 EPITHERMAL DEPOSIT SUB-TYPES ...................................................................... 23
8.0 MINERALIZATION ...................................................................................................... 26
9.0 EXPLORATION ............................................................................................................. 29

9.1 2007 VENTURA EXPLORATION PROGRAM ......................................................... 29
9.2 2008 VENTURA EXPLORATION PROGRAM ......................................................... 29
9.3 2009 VENTURA/IMZ EXPLORATION PROGRAM ................................................ 29
9.3.1 DRILLING....................................................................................................... 30
9.4 2010 IMZ EXPLORATION PROGRAM ..................................................................... 31
9.4.1 GEOPHYSICAL SURVEYS.......................................................................... 31
9.4.2 PIMA SURVEY ............................................................................................... 34
9.4.3 PETROGRAPHIC SURVEY ......................................................................... 34
9.4.4 DRILLING....................................................................................................... 34
10.0 DRILLING....................................................................................................................... 35

10.1 VENTURA DRILL PROGRAM ................................................................................... 35
10.1.1 2007 VENTURA DRILL PROGRAM .......................................................... 35
10.1.2 2008 VENTURA DRILL PROGRAM .......................................................... 37
10.2 2009 VENTURA - IMZ DRILL PROGRAM ............................................................... 37
10.3 2010 IMZ DRILL PROGRAM ...................................................................................... 40
10.4 DRILLING AND CORE RECOVERY ........................................................................ 44
11.0 SAMPLING METHOD AND APPROACH ................................................................. 45

11.1 GENERAL ....................................................................................................................... 45
11.2 DIAMOND DRILL CORE LOGGING AND SAMPLING ........................................ 45
11.3 CORE SAMPLING, SECURITY AND CHAIN OF CUSTODY ............................... 46
11.4 SUMMARY AND CONCLUSIONS ............................................................................. 46
12.0 SAMPLE PREPARATION, ANALYSES AND SECURITY ..................................... 47

12.1 SAMPLE PREPARATION ............................................................................................ 47
12.2 ANALYSES ..................................................................................................................... 47
12.3 SECURITY ...................................................................................................................... 47
13.0 DATA VERIFICATION................................................................................................. 49

13.1 P&E SITE VISIT AND INDEPENDENT SAMPLING .............................................. 49
13.2 VERIFICATION OF THE ELECTRONIC DATABASE .......................................... 50
13.3 CHECKS OF THE RELIABILITY OF ASSAY DATA ............................................. 51
13.3.1 INTERNAL QA/QC CHECKS DONE BY SGS .......................................... 51
13.3.1.1 INTERNAL STANDARDS .......................................................... 51
13.3.1.2 INTERNAL BLANKS .................................................................. 51
13.3.1.3 INTERNAL DUPLICATES ......................................................... 52
13.3.2 EXTERNAL QA/QC CHECKS DONE BY IMZ ........................................ 52
13.3.2.1 EXTERNAL STANDARDS ......................................................... 52
13.3.2.2 BLANKS ........................................................................................ 53
13.3.2.3 DUPLICATES ............................................................................... 55
13.3.3 SCREENED METALLICS ASSAY CHECKS OF BIAS CAUSED
BY COARSE GOLD ....................................................................................... 56
13.3.4 CHECKS OF CONSISTENCY WITH MULTIELEMENT
CHEMISTRY FROM ICP ANALYSES ....................................................... 57
13.4 SUMMARY AND CONCLUSIONS ............................................................................. 59
14.0 ADJACENT PROPERTIES .......................................................................................... 60

15.0 METALLURGICAL PROCESSING AND METALLURGICAL TESTING .......... 61
15.1 METALLURGICAL TESTWORK .............................................................................. 61
15.1.1 SAMPLES ........................................................................................................ 61
15.1.2 GRINDABILITY TESTS ............................................................................... 62
15.1.3 FLOTATION TESTWORK .......................................................................... 62
15.2 PROCESS DESCRIPTION............................................................................................ 65
16.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ...................... 66

16.1 MINERAL RESOURCE ESTIMATES ........................................................................ 66
16.1.1 DATA ............................................................................................................... 66
16.1.1.1 ASSAY DATABASE ..................................................................... 66
16.1.1.2 TOPOGRAPHY ............................................................................ 67
16.1.1.3 DENSITY ....................................................................................... 68
16.1.2 GEOLOGICAL AND STATISTICAL DOMAINS ..................................... 68
16.1.3 STATISTICAL ANALYSIS OF GOLD AND SILVER ASSAYS ............. 71
16.1.4 GRADE CAPPING ......................................................................................... 74
16.1.5 VARIOGRAMS............................................................................................... 74
16.1.6 LOCAL COORDINATE SYSTEM AND BLOCK MODEL
ORIENTATION .............................................................................................. 75
16.1.7 ORDINARY KRIGING.................................................................................. 77
16.1.7.1 ESTIMATION OF TONNAGE ................................................... 77
16.1.7.2 ESTIMATION OF GRADE......................................................... 77
16.1.8 CHECKS OF BLOCK MODEL ESTIMATES ........................................... 78
16.1.8.1 SOFTWARE .................................................................................. 78
16.1.8.2 TONNAGE CHECKS .................................................................. 78
16.1.8.3 GRADE CHECKS ........................................................................ 80
16.1.9 RESOURCE CLASSIFICATION ................................................................. 82
16.1.10 SUMMARY OF CLASSIFIED MINERAL RESOURCES ........................ 85
16.2 MINERAL RESERVES ................................................................................................. 85
17.0 OTHER RELEVANT DATA AND INFORMATION ................................................ 86
18.0 INTERPRETATION AND CONCLUSIONS .............................................................. 87
19.0 RECOMMENDATIONS ................................................................................................ 88
20.0 REFERENCES ................................................................................................................ 89
21.0 CERTIFICATES ............................................................................................................. 90
22.0 MINEABLE MINERAL RESOURCE ESTIMATE ................................................... 91

22.1 UNDILUTED MINABLE RESOURCES ..................................................................... 91
22.2 MINE DILUTION ........................................................................................................... 93
22.3 MINE EXTRACTION (RECOVERY) ......................................................................... 94
23.0 MINING OPERATIONS................................................................................................ 99
23.1 INTRODUCTION ........................................................................................................... 99
23.2 MINE PLAN .................................................................................................................... 99
23.2.1 PRIMARY ACCESS ....................................................................................... 99
23.2.2 STOPE ACCESS ........................................................................................... 103
23.2.3 STOPE DEVELOPMENT ........................................................................... 105
23.2.4 STOPING ....................................................................................................... 106
23.3 OTHER UNDERGROUND INFRASTRUCTURE ................................................... 111
23.3.1 MINE DEWATERING ................................................................................. 111
23.3.2 MAINTENANCE SHOP .............................................................................. 112
23.3.3 FUEL STATION ........................................................................................... 112
23.3.4 REFUGE STATION ..................................................................................... 112
23.3.5 EXPLOSIVES STORAGE ........................................................................... 113
23.3.6 DETONATOR MAGAZINE........................................................................ 113
23.3.7 MATERIALS HANDLING AND STORAGE AREA ............................... 113
23.3.8 WASHROOMS ............................................................................................. 113
23.4 SERVICES ..................................................................................................................... 113
23.4.1 ELECTRICAL DISTRIBUTION ................................................................ 113
23.4.2 COMPRESSED AIR ..................................................................................... 114
23.4.3 SERVICE WATER ....................................................................................... 114
23.4.4 MINE COMMUNICATIONS AND CONTROL SYSTEMS ................... 114
23.5 VENTILATION ............................................................................................................ 114
23.6 GEOTECHNICAL ........................................................................................................ 114
23.7 DEVELOPMENT AND PRODUCTION SCHEDULE ............................................ 115
23.7.1 DEVELOPMENT SCHEDULE .................................................................. 115
23.7.2 PRODUCTION SCHEDULE ...................................................................... 117
23.8 MINING AND SERVICES MOBILE EQUIPMENT ............................................... 118
23.9 MINE SUPPORT FACILITIES .................................................................................. 118
23.10 MANPOWER ................................................................................................................ 119
24.0 INFRASTRUCTURE.................................................................................................... 121

24.1 SITE PLAN .................................................................................................................... 121
24.2 TAILINGS DISPOSAL AND WATER SUPPLY ...................................................... 121
24.3 POWER SUPPLY ......................................................................................................... 126
24.3.1 ALTERNATIVES ......................................................................................... 126
24.3.2 ONGOING WORK ....................................................................................... 126
24.4 WASTE ROCK DISPOSAL ........................................................................................ 127
24.5 SITE WATER MANAGEMENT ................................................................................ 127
24.6 ANCILLIARY FACILITIES ....................................................................................... 127
24.6.1 ROADS ........................................................................................................... 127
24.6.1.1 OVERVIEW ................................................................................ 127
24.6.1.2 ALTERNATE ROUTES EVALAUTION ................................ 128
24.6.1.3 TECHNICAL ISSUES RELATED TO ROAD DESIGN ....... 131
24.6.1.4 DISCUSSION .............................................................................. 131
24.6.2 BUILDINGS .................................................................................................. 132
24.6.3 WASTE DISPOSAL ..................................................................................... 133
25.0 ENVIRONMENT CONSIDERATIONS..................................................................... 134
26.0 CAPITAL COSTS ......................................................................................................... 136

26.1 POWER SUPPLY ......................................................................................................... 136
26.1.1 CONCEPTUAL COST ESTIMATE ........................................................... 136
26.2 ROADS ........................................................................................................................... 136
26.2.1 COST ESTIMATE AND COMPARISON ................................................. 136
26.3 MINE CAPITAL COSTS ............................................................................................. 138
26.3.1 PRE-PRODUCTION CAPITAL ................................................................. 139
26.3.2 SUSTAINING CAPITAL ............................................................................. 141
26.4 PROCESS PLANT CAPITAL COSTS ....................................................................... 141
26.4.1 BASES ............................................................................................................ 141
26.4.2 CAPITAL COST SUMMARY..................................................................... 143
26.5 TAILINGS DISPOSAL AND WATER SUPPLY ...................................................... 143
26.6 MISCELLANEOUS CAPITAL COSTS..................................................................... 146
26.7 TOTAL PROJECT ....................................................................................................... 146
27.0 OPERATING COST ESTIMATE............................................................................... 148

27.1 MINE OPERATING COSTS....................................................................................... 148
27.2 PROCESS PLANT OPERATING COSTS ................................................................ 151
27.2.1 BASIS ............................................................................................................. 151
27.2.2 OPERATING COST SUMMARY .............................................................. 151
27.3 SMELTING AND REFINING COSTS ...................................................................... 151
27.4 GENERAL AND ADMINISTRATION (G&A) ......................................................... 151
27.5 RECAPTURED WORKING CAPITAL .................................................................... 152
27.6 ROYALTIES ................................................................................................................. 152
27.7 TOTAL CASH COST ................................................................................................... 152
28.0 ECONOMIC ASSESSMENT ...................................................................................... 153

28.1 ECONOMIC CRITERIA ............................................................................................. 153
28.1.1 PHYSICALS .................................................................................................. 153
28.1.2 REVENUE ..................................................................................................... 153
28.1.3 COSTS ............................................................................................................ 154
28.2 CASH FLOW ................................................................................................................ 154
28.3 CASH FLOW ANALYSIS ........................................................................................... 156
28.4 SENSITIVITY ANALYSIS .......................................................................................... 156
29.0 INTERPRETATIONS AND CONCLUSIONS .......................................................... 158
30.0 RECOMMENDATIONS .............................................................................................. 159
31.0 REFERENCES .............................................................................................................. 161
32.0 CERTIFICATES ........................................................................................................... 162

LIST OF FIGURES
Figure ES-1: Sensitivity Graph ................................................................................................... viii

Figure 3-1: Location Map for the Inmaculada Property ................................................................. 8
Figure 3-3: Inmaculada Property Mining Concessions ................................................................. 12
Figure 6-1: Simplified Regional Geology of Perú ........................................................................ 18
Figure 6-2: Inmaculada Property Geology Map ........................................................................... 20
Figure 6-3: Geology of the Quellopata Veins ............................................................................... 22
Figure 7-1: LS and HS Epithermal Deposit Model ....................................................................... 24
Figure 8-1: Longitudinal Section with Grade Contours for the Angela Vein ............................... 27
Figure 8-2: Cross Section 11800N of the Angela Vein (looking east) ......................................... 28
Figure 9-1: Inmaculada Shallow IP............................................................................................... 32
Figure 9-2: Inmaculada Deep IP ................................................................................................... 33
Figure 10-1: Drilling at the Quellopata Including the Angela Vein, Inmaculada Property, 2007-
2010 ............................................................................................................................................... 36
Figure 13-1: P&E Site Visit Verification Sample Results for Gold, June 2010 ........................... 49
Figure 13-2: P&E Site Visit Verification Sample Results for Silver, June 2010.......................... 50
Figure 13-3: Example of Control Chart for External Standards ................................................... 53
Figure 13-4: Control Chart for External Gold Blanks................................................................... 54
Figure 13-5: Control Chart For External Silver Blanks ................................................................ 54
Figure 13-6: Example of Scatter Plot for Pulp Duplicates, Showing the Comparison of the
Original Silver Assays from the SGS Laboratory to the Duplicate Silver Assays from the ALS
Chemex Laboratory ....................................................................................................................... 55
Figure 13-7: Example of Scatter Plot for Coarse Reject Duplicates, Showing the Comparison of
the Original Gold Assays from SGS to a Second Gold Assay, Also by SGS, Using the Coarse
Reject............................................................................................................................................. 56
Figure 13-8: Actual AuEq Assays Versus Predictions Based on Multi-Element Chemistry........ 58
Figure 15-1: Gold Recovery Versus Mass Pull at 80 % -45 Microns ........................................... 63
Figure 15-2: Silver Recovery Versus Mass Pull at 80 % -45 Microns ......................................... 64
Figure 16-1: Horizontal Projection of Domains Used for Resource Estimation........................... 69
Figure 16-2: Northeast-Facing Cross-Sections Showing the Domains Used for Resource
Estimation ..................................................................................................................................... 70
Figure 16-3: Side-By-Side Box Plots and Length-Weighted Summary Statistics for Gold Assays
in the Four Mineralized Domains.................................................................................................. 71
Figure 16-4: Side-By-Side Box Plots and Length-Weighted Summary Statistics for Silver Assays
in the Four Mineralized Domains.................................................................................................. 72
Figure 16-5: Scatter Plot of Silver Versus Gold Within the Mineralized Domains ...................... 73
Figure 16-6: Log-Probability Plots for Gold and Silver Assays in the Mineralized Domains ..... 74
Figure 16-7: Experimental Variograms (Solid Line) and Variogram Models (Dotted Line) for
AuEq ............................................................................................................................................. 75
Figure 16-8: Resource Block Model Configuration ...................................................................... 76
Figure 16-9: Check of Tonnage Estimates on Section 10050 ....................................................... 79
Figure 16-10: Check of Gold-Equivalent Grade Estimates on Section 10050 ............................. 80
Figure 16-11: Swath Plots Comparing the Average AuEq from the Block Model Estimates to the
Average AuEq Calculated Directly from the Original Drill Hole Assays .................................... 81
Figure 16-12: Integer Codes After First Step of Block-By-Block Classification ......................... 83
Figure 16-13: Final Classification After Second Step Of Spatial Averaging Of Integer Codes ... 84
Figure 22-1: Longitudinal Section of the Minable Portion of the Angela, Splay, Roxana and
Minor Veins .................................................................................................................................. 92
Figure 23-1: Longitudinal Section (Looking West) Showing Stopes and Development ............ 100
Figure 23-2: 4365 L Plan View Showing a Typical Ore Pass, Fresh Air Raise and Ramp
Connections ................................................................................................................................. 101
Figure 23-3: 4265 L Plan View Showing a Typical Ore Pass, Fresh Air Raise and Ramp
Connections ................................................................................................................................. 102
Figure 23-4: Typical Cross Section of the Spiral Ramp Layouts ............................................... 104
Figure 24-1: Inmaculada Site Plan .............................................................................................. 122
Figure 24-2: Tailings Disposal Facility Possible Site Locations ................................................ 123
Figure 24-3: Sub Basin Areas – Alternative 6 and Water Reservoir .......................................... 125
Figure 24-4: Sections For Each Alternate Route ........................................................................ 129
Figure 24-5: Sections For Each Alternate Route With Topography ........................................... 129
Figure 26-1: Sections A-A’ and B-B’ of the Tailings Facility.................................................... 144
Figure 28-1: Sensitivity Graph .................................................................................................... 157
LIST OF TABLES
Table ES.1: Budget to Complete Recommended Work Program ................................................. iii

Table ES.2: Summary of Gross and Net Revenues in US$M ........................................................ iv
Table ES.3: Pre-Tax Cash Flow in US$M ..................................................................................... vi
Table ES.4: NPV at Various Discount Rates in US$M ................................................................vii
Table ES.5: Other Financial Statistics...........................................................................................vii
Table ES.6: Sensitivities to NPV at 5 % Discount Rate in US$M ............................................. viii
Table ES.7: Mineral Resource Estimate for the Angela Vein at a Cut-Off Grade of 3 g/t AuEq
(as of September 9, 2010) .............................................................................................................xii
Table ES.8: Mineable Portion of the Undiluted Angela Vein Resource .......................................xii
Table ES.9: Total Diluted Recovered Mineable Portion of the Angela Vein Resource ............. xiii
Table ES.10: Project Capital Cost Summary (US$M) .................................................................. xv
Table ES.11: Summary of Cash Cost Per Tonnes Milled ............................................................ xvi
Table 3.1: Inmaculada Property UTM Coordinates ........................................................................ 8
Table 3.2: Inmaculada Mining Concessions ................................................................................. 13
Table 5.1: Historical Exploration on the Inmaculada Property, 1990-2005 ................................. 17
Table 7.1: Characteristics of Epithermal Deposit Sub-Types ....................................................... 25
Table 9.1: Rock Chip Results for the Anta Patari, Cascara-Huallhua and Quellopata Southeast
Prospect Areas ............................................................................................................................... 30
Table 10.1: Drill Holes on the Inmaculada Property, 2007 – May 2010 ...................................... 35
Table 10.2: Ventura-IMZ 2009 Drill Program .............................................................................. 38
Table 10.3: Significant Intercepts for the 2009 Drill Programs .................................................... 39
Table 10.4: IMZ 2010 Drill Program to May 15, 2010................................................................. 41
Table 10.5: Significant Intercepts for the 2010 Drill Programs .................................................... 42
Table 13.1: Comparison of Original Assays to Screened Metallics Assays ................................. 57
Table 15.1: Bond Index Test Results ............................................................................................ 62
Table 15.2: Summary Rougher Flotation Tests Inmaculada Phase 1 ........................................... 63
Table 15.3: Two Stage Open Circuit Concentrate Grades ............................................................ 64
Table 16.1: Number of Sample Intervals with Single Assays, and with Duplicate Assays that
were Averaged for Grade Interpolation in the Resource Block Model......................................... 67
Table 16.2: Mineral Resource Estimate for the Angela vein at a Cut-Off Grade of 3 g/t AuEq (as
of September 9, 2010) ................................................................................................................... 85
Table 22.1: Mineable Portion of the Undiluted Angela Vein Resource ....................................... 91
Table 22.2: Diluted Unrecovered Mineable Portion of the Angela Vein Resource ...................... 93
Table 22.3: Diluted Recovered Mineable Portion of the SZ1 Angela Vein Resource.................. 94
Table 22.4: Diluted Recovered Mineable Portion of the SZ2 Angela Vein Resource.................. 95
Table 22.5: Diluted Recovered Mineable Portion of the NZ1 Angela Vein Resource ................. 96
Table 22.6: Diluted Recovered Mineable Portion of the NZ2 Angela Vein Resource ................. 97
Table 22.7: Total Diluted Recovered Mineable Portion of the Angela Vein Resource ................ 98
Table 23.1: Primary Access Development Quantities .................................................................. 99
Table 23.2: Stope Access Development Quantities .................................................................... 105
Table 23.3: Stope Development Quantities................................................................................. 106
Table 23.4: Stoping Area Strike Length and Average Width ..................................................... 107
Table 23.5: SZ1 Angela Vein Resource Development and Stoping Tonnes .............................. 108
Table 23.6: SZ2 Angela Vein Resource Development and Stoping Tonnes .............................. 109
Table 23.7: NZ1 Angela Vein Resource Development and Stoping Tonnes.............................. 110
Table 23.8: NZ2 Angela Vein Resource Development and Stoping Tonnes.............................. 111
Table 23.9: Summary of Mine Development Advance Rates ..................................................... 115
Table 23.10: Summary of Mine Development Schedule in Waste ............................................. 116
Table 23.11: Summary of Mine Development Schedule in Mineralization ............................... 117
Table 23.12: Summary of Stoping Productivities ....................................................................... 117
Table 23.12: Angela Vein LOM Stope Production Schedule ..................................................... 118
Table 23.13: Summary of Proposed Mine Workforce ................................................................ 120
Table 24.1: Comparison of Alternative Tailings Disposal Sites ................................................. 124
Table 24.2: Route Alternatives to Access the Inmaculada Property ........................................... 128
Table 24.3: Road Characteristics for Each Alternate Route ....................................................... 130
Table 26.1: Cosapi Conceptual Costs for the Project Power Supply .......................................... 136
Table 26.2: Unitary Cost Estimates Per Kilometre of Road ....................................................... 137
Table 26.3: Cost Summary for Alternate Roads ......................................................................... 137
Table 26.4: Summary for Alternate Road Construction Schedules ............................................ 138
Table 26.5: Mine Development Unit Capital Costs .................................................................... 139
Table 26.6: Underground Mine Equipment and Facilities Capital Cost Summary .................... 140
Table 26.7: Underground Pre-production Development Capital Cost Summary ....................... 141
Table 26.8: Underground Mine Development Sustaining Capital Cost Summary (US$M) ....... 141
Table 26.9: Process Plant and Ancillary Facilities Capital Cost Summary ................................ 143
Table 26.10: Capital Cost Estimate for Alternative 6 – Facility for Slurry Tailings Disposal and
Make-Up Water Reservoir .......................................................................................................... 145
Table 26.11: Summary of Capital Contingency Costs ................................................................ 146
Table 26.12: Project Capital Cost Summary (US$M)................................................................. 147
Table 27.1: Summary of Mine Operating Consumables, Materials and Maintenance Parts Costs
..................................................................................................................................................... 148
Table 27.2: Summary of Mine Services and Power Costs .......................................................... 149
Table 27.3: Summary of Mine Labour Costs .............................................................................. 150
Table 27.4: Summary of Total Mine Operating Costs ................................................................ 151
Table 27.5: Mill Process Operating Cost Summary.................................................................... 151
Table 27.6: Summary of Cash Cost Per Tonnes Milled .............................................................. 152
Table 28.1: Summary of Gross and Net Revenues in US$M...................................................... 153
Table 28.2: Pre-Tax Cash Flow in US$M ................................................................................... 155
Table 28.3: NPV at Various Discount Rates in US$M ............................................................... 156
Table 28.4: Other Financial Statistics ......................................................................................... 156
Table 28.5: Sensitivities to NPV at 5 % Discount Rate in US$M .............................................. 157
Table 30.1: Budget to Complete Recommended Work Program................................................ 160
SUMMARY
EXECUTIVE SUMMARY
The following report was prepared by P&E Mining Consultants Inc. (“P&E”) at the request of
Mr. Nick Appleyard, VP Corporate Development of International Minerals Corporation
(“IMZ”). IMZ is a USA-based public company listed for trading on the Toronto and Swiss Stock
Exchanges under the symbol of IMZ. The purpose of this report is to provide an independent,
National Instrument (“NI”) 43-101 compliant, technical report and Preliminary Economic
Assessment as well as an updated resource estimate (the “Report”) on the Angela vein deposit
located on the Inmaculada Property in the provinces of Parinacochas and Paucar de Sara Sara,
Department of Ayacucho, Southern Perú (the “Property”).
P&E visited the Inmaculada Property between June 10 to 11, 2011.
This Report has been prepared in compliance with the requirements of Canadian NI 43-101 and
in accordance with the guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum
(“CIM”) Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by
the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December
11, 2005.
INTERPRETATIONS AND CONCLUSIONS
P&E offers the following interpretations and conclusions:
1. The Inmaculada project based on this Preliminary Economic Assessment is economically

viable and generates a non discounted pre-tax cash flow of US$660 million and at a 5 %
discount rate; a pre-tax cash flow (NPV) is US$435 million. The pre-tax IRR is 41 % and
the payback period is 2.5 years. Anticipated mine life is 7.6 years.
2. Geotechnical: Based on rudimentary field work testing on drill core, completed by IMZ’s
geologists, it appears that the rock strength may be almost equal to the in-situ tectonic
stresses. If correct, this will affect the stoping mine design, specifically the stope
dimensions and the 25 m sublevel spacing. P&E cautions on the potential mine design
outcome of smaller sublevel intervals which will affect capital development costs and
ultimately the return on investment.
3. On recent review of the mining operating and capital estimates it was noted that 10 % of
the operating cost for miscellaneous items, and the paste backfill plant design and cost
estimate and equipment freight and assembly capital costs have been overlooked in this
Preliminary Economic Assessment. These oversights are not considered material to this
study, however, it must be addressed in any future economic analysis.
4. Good core logging and sampling protocols and procedures have been used by IMZ and
its predecessors at the Inmaculada Property. They conform to what is generally regarded
as best practice, and are well suited to the deposit’s style of mineralization. These
protocols and procedures are appropriate for the collection of data suitable for the
calculation of a mineral resource estimate that complies with NI 43-101 and with CIM
Best Practices Guidelines.
P&E Mining Consultants Inc. i

Inmaculada Deposit – Report No. 189
5. Extensive measures have been taken to verify the data used for the 2010 mineral resource
update for the Inmaculada Property. The electronic data base has been entirely
recompiled from original assay certificates provided by the laboratory. Though there are
minor shortcomings with the laboratory’s internal QA/QC program, these are well
covered by IMZ’s external QA/QC program. Consistency between multi-element
chemistry and gold-equivalent assays provides an additional level of confidence in the
data. Independent check samples have confirmed the original assay results. The assay
data have the accuracy and precision required for resource estimation, and the electronic
data base is reliable.
RECOMMENDATIONS
P&E offers the following recommendations:
1. P&E strongly recommends that IMZ commence a full underground geotechnical stoping
study, as soon as possible.
2. The next phase of study work needs to include the design and capital and operating cost
estimate of a paste backfill plant.
3. The study should be completed to identify the source of electrical power for the project
and that the design and cost of construction of the power transmission line is defined to a
greater degree of certainty. A 120 kV overhead powerline should be considered to reduce
power transmission line losses.
4. Closer consideration should be given to alternate access road routes that may initially
cost more and have long lasting operating savings.
5. Determine the acid generation potential of tailings, waste rock and of possible
construction materials.
6. Additional metallurgical testwork to determine if Preliminary Economic Assessment

level conclusions are valid and refine parameters for process plant design.
7. P&E recommends that the Inmaculada Project proceeds directly to a definitive feasibility
study as soon as possible based on the Preliminary Economic Assessment’s
demonstration of robust economics.
Details of the US$3.4 million budget to complete the recommended work program, above, are
summarized in Table ES.1.
P&E Mining Consultants Inc. ii

Table ES.1: Budget to Complete Recommended Work Program
Unit Cost Estimated

Item Task Units Qty (US$) Cost (US$)
Core Drilling m 2,250 200 450,000
Testwork & Study Lot 1 250,000 250,000
Geotechnical Subtotal 700,000
Backfill Plant Eng. Design & Estimate Lot 1 100,000 100,000
Powerline Study Lot 1 150,000 150,000
Access Road Trade-off Study Lot 1 75,000 75,000
Acid Generation Study Lot 1 150,000 150,000
Environmental Impact Study Lot 1 400,000 400,000
Environmental Subtotal 550,000
Metallurgy Bulk Sample & Testwork 300,000 1 300,000 300,000
Definitive Feasibility Study Study 1,000,000 1 1,000,000 1,000,000
Convert Inferred Resources to M&I Core Drilling & Report 500,000 1 500,000 500,000
Total 3,375,000
Note: Table ES.1 represents 100 % of the Property. IMZ will hold 40 % of the Property (60 % Hochschild) as outlined in framework agreement announced
October 12, 2010. Readers are cautioned that as of the date of filing this Report, the framework agreement between IMZ and Hochschild that indicates the
ownership proportions of the Inmaculada Property, remains subject to regulatory approvals. There is no guarantee expressed or implied by P&E that this
agreement will be realized.
P&E Mining Consultants Inc. iii

ECONOMIC ANALYSIS
The economic analysis contained in this Report is based on measured, indicated and inferred
resources. There are no mineral reserves used in this Report. P&E believe the mineral resources
in this Report meet the requirements of the CIM Standards on Mineral Resources and Reserves.
ECONOMIC CRITERIA
PHYSICALS
Mine life:
• Pre-production – 2 years
• Production – 7.6 years
Production rate:
• 3,000 tpd
Total mill production:

• 8,029,900 t ore at 3.78 g/t Au, 137 g/t Ag and 6.06 g/t AuEq
Metallurgical recoveries:
• 88 % Au, 83 % Ag
Total payable metal, for gross revenue:

• 857,800 oz Au, 29.3 million oz Ag
REVENUE
LOM gross gold and silver revenues are estimated to be US$1,356 million. LOM net gold and
silver revenues (after smelting and refining) are estimated to be US$1,261 million. A summary
of estimated LOM gross and net revenues is presented in Table ES.2.
Table ES.2: Summary of Gross and Net Revenues in US$M
Item / Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Total
Gold Market Value 68 98 113 111 116 123 151 77 858
Silver Market Value 35 55 59 63 75 74 87 51 499
Gross Revenues 104 153 172 174 191 197 238 128 1,356
Smelting and Refining 7 11 12 12 13 14 17 9 95
Net Revenues 96 142 160 162 178 183 221 119 1,261
Note: Table ES.2 represents 100 % of the Property. IMZ will hold 40 % of the Property (60 % Hochschild) as
outlined in framework agreement announced October 12, 2010. Readers are cautioned that as of the date of filing
this Report, the framework agreement between IMZ and Hochschild that indicates the ownership proportions of
the Inmaculada Property, remains subject to regulatory approvals. There is no guarantee expressed or implied by
P&E that this agreement will be realized.
The revenues are based on a gold price of US$1,000/oz and a silver price of US$17.00/oz.
P&E Mining Consultants Inc. iv

COSTS
Average cash cost:

• US$52.08/t milled
LOM capital costs:

• Pre-production capital totals US$168 million
• Sustaining capital totals US$110 million
• LOM capital totals US$278 million (100 % of Property)
CASH FLOW
A pre-tax cash flow model is presented in Table ES.3. All costs are in 2010 US dollars with no
allowance for inflation.
P&E Mining Consultants Inc. v

Table ES.3: Pre-Tax Cash Flow in US$M
Item / Year Year -2 Year -1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Total
Tonnes Mined (000's) 759 1,096 1,096 1,096 1,096 1,096 1,096 696 8,030
Au Grade (g/t) 3.18 3.18 3.64 3.59 3.74 3.95 4.87 3.92 3.78
Ag grade (g/t) 103 110 119 126 151 149 174 161 137
Tonnes to Mill (000’s) 759 1,096 1,096 1,096 1,096 1,096 1,096 696 8,030
Head grade Au g/t 3.18 3.18 3.64 3.59 3.74 3.95 4.87 3.92 3.78
Head Grade Ag g/t 103 110 119 126 151 149 174 161 137
Gross Revenues (US$M) 104 153 172 174 191 197 238 128 1,356
Total Cash Cost (US$M) 0 0 37 55 55 56 59 61 65 30 418
Total Capital Costs (US$M) 41 127 29 15 33 13 10 2 1 8 278
Pre-Tax Cash Flow (US$M) -41 -127 38 84 84 105 123 133 172 89 660
Cum Pre-Tax Cash Flow (US$M) -41 -168 -130 -46 38 143 265 399 570 660
1. Table ES.3 represents 100 % of the Property. IMZ will hold 40 % of the Property (60 % Hochschild) as outlined in framework agreement announced October
12, 2010. Readers are cautioned that as of the date of filing this Report, the framework agreement between IMZ and Hochschild that indicates the ownership
proportions of the Inmaculada Property, remains subject to regulatory approvals. There is no guarantee expressed or implied by P&E that this agreement
will be realized.
2. This Preliminary Economic Assessment is preliminary in nature, in that it includes inferred mineral resources that are considered too speculative geologically
to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the results of the
Preliminary Economic Assessment will be realized.
3. Initial Capital includes $32.9 million in contingency allowance. Costs are based on Q3 2010 estimates and no escalation factors have been applied. Value
added tax has not been included in the cost estimates.
P&E Mining Consultants Inc. vi

CASH FLOW ANALYSIS
The following pre-tax cash flow analysis was completed on the cash flow:
• Net present value (“NPV”) (at 5 %, 10 % and 15 % discount rate)
The summary of the results of the cash flow analysis is presented in Table ES.4.
Table ES.4: NPV at Various Discount Rates in US$M
Item Discount Rate Value (US$M)

Non Discounted Pre Tax Cash Flow 0% 660
5% 434
NPV at: 10 % 287
15 % 188
Other financial statistics including a pre-tax internal rate of return (“IRR”) of 41 % are
summarized in Table ES.5.
Table ES.5: Other Financial Statistics
Item Units Value

Total Cash Cost Per tonne of ore 52.08
Total Cash Operating Cost Per ounce AuEq 311
Total Cash Operating Cost, Inc Capital Per ounce AuEq 517
Total Cash Operating Cost (by-product) Per ounce Au (Ag credit) -94
Total Cash Operating Cost Inc Capital (by-product) Per ounce Au (Ag credit) 231
Pre-Tax IRR % 41 %
1. Total Cash Operating costs include smelting and refining, Peruvian Government royalties, but do not include
employee profit sharing or depreciation, depletion or amortization.
2. Total Cash Costs per ounce of gold equivalent are calculated using a silver to gold ratio of 60:1.
3. By-product accounting subtracts the revenue generated by silver from the operating costs as a credit to determine
the cost per ounce of gold.
4. Annual and life-of-mine production figures are after 5 % mining losses, 20 % mining dilution and the respective
metallurgical recoveries for gold and silver.
SENSITIVITY ANALYSIS
Project risks can be identified in both economic and non-economic terms. Key economic risks
were examined by running cash flow sensitivities to:
• silver metal price;
• gold metal price;
• operating costs; and
• capital costs.
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To determine what this project is most sensitive to, each of the sensitivity items were adjusted up
and down by 10 % and 20 % to see what effect it would have on the NPV at a discount rate of
5 %. The resultant pre-tax NPV at 5 % value of each of the sensitivity items at 80 % to 120 % is
presented in Table ES.6 and Figure ES-1. This pre-tax NPV is most sensitive to the gold price,
followed by silver price, operating costs and capital cost (“Capex”), respectively.
Table ES.6: Sensitivities to NPV at 5 % Discount Rate in US$M
NPV at 5 %
Item 80 % 90 % 100 % 110 % 120 %
Gold price 323 379 434 491 547
Silver price 370 402 434 467 499
Capex 484 459 434 410 385
Operating cost 497 466 434 403 372
Figure ES-1: Sensitivity Graph
Sensitivity Graph
$600
$550
Pre Tax NPV @ 5% (M)
$500
$450
$400
$350
$300
80% 90% 100% 110% 120%
Percent of Value
Operating Cost Capex Gold Price Silver Price
P&E Mining Consultants Inc. viii

TECHNICAL SUMMARY
The Inmaculada Property is located in southern Perú within the provinces of Parinacochas and
Paucar de Sara Sara in the Ayacucho Department situated approximately at latitude 14°57'27"S
and longitude 73°14'42"W. The Property is found at elevations between 3,900 and 4,800 m asl in
the Puquio-Caylloma Belt and is approximately 210 km southwest of the town of Cuzco and 530
km southeast of Lima, the capital of Perú.
TENURE AND PROPERTY OWNERSHIP AND AGREEMENTS
Title to the Inmaculada Property is held by Minera Quellopata S.A.C (“Minera Quellopata”), the
operating company set up in August 2009 under the terms of an option and joint venture (“JV”)
agreement between IMZ and Hochschild Mining PLC (“Hochschild”).
IMZ acquired Ventura Gold Corporation’s (“Ventura”) 51 % interest in the Property on January
12, 2010, through its acquisition of all of the issued and outstanding shares of Ventura in an all
share corporate takeover of Ventura (one share of IMZ for every 10 shares of Ventura). IMZ
intended to advance the project towards a feasibility study in order to earn a 70 % interest in
Minera Quellopata by September 2013.
Subsequent to the effective and filing dates of this Report, IMZ announced on October 12, 2010
that it had signed a framework agreement with Hochschild whereby Hochschild would hold a
60 % interest (IMZ 40 %) and become the operator of the Inmaculada Property.
Under the terms of the agreement, Hochschild will pay to IMZ US$15 million in cash and
undertake an equity investment in IMZ of US$20 million in the form of a private placement at a
price of CDN$5.525 per share. Hochschild will provide 100 % of the initial $100 million of
funding required for the planning, development and construction of a mining operation at the
Angela vein deposit at Inmaculada. Hochschild also will commit to building a mining operation
at the Angela vein deposit with a process capacity of 3,000 tpd (unless the parties agree that such
capacity is not optimal) within three years of closing of the transaction. A minimum of 20,000 m
of drilling per year for the first three years following the closing of the transaction (the
‘Exploration Drilling Program’) must be carried out for evaluation of exploration targets outside
of the main Angela vein deposit. The Exploration Drilling Program will be funded 60 % by
Hochschild and 40 % by IMZ.
READERS OF THE PRECEDING FRAMEWORK AGREEMENT DISCLOSURE ARE

CAUTIONED THAT AS OF THE DATE OF FILING THIS TECHNICAL REPORT, THE
TRANSACTION REMAINS SUBJECT TO REGULATORY APPROVALS. THERE IS NO
GUARANTEE EXPRESSED OR IMPLIED BY P&E THAT THIS AGREEMENT WILL BE
REALIZED.
The Inmaculada Property consists of 31 mining concessions with a total area of 19,359.45 ha
held 100 % by Minera Quellopata. Fees and penalties in the amount of US$255,311.98 were paid
in June 30, 2010. The claims are in good standing until June 30, 2011. Minera Quellopata holds
a 25 year lease from the community of Huallhua, on 870 ha of land for a period of 25 years
effective November 25, 2009.
P&E Mining Consultants Inc. ix

HISTORY
Exploration on the Inmaculada Property commenced in 1990 by Mitsui Mining Corporation. The
Property was sold and the concessions were transferred to Hochschild in 1992. Hochschild
performed geological mapping, rock chip and soil sampling, geophysical surveys and diamond
drilling on the Property between 1998 and 2005. In 2007, the operating company Minera
Quellopata was set up under the JV agreement between Hochschild and Ventura.
GEOLOGY
The Inmaculada Property is located in the Western Cordillera of southern Peru, which consists of
Cretaceous and Tertiary volcanics and to a lesser extent sedimentary sequences with Tertiary
intrusive. Gold deposits are located within the Cenozoic Puquio-Caylloma Belt and are
associated with volcanics and intrusions. Ore zones are hosted in the volcanic rocks as
epithermal Ag-Au mineralized quartz vein systems including the Low Sulphidation (“LS”)
Pallancata, Ares and Explorador deposits, Intermediate Sulphidation (“IS”) Arcata and Caylloma
deposits and High Sulphidation (“HS”) Shila, Paula, Selene, Suyckutambo, Chipmo and
Poracota deposits. The deposits on the Inmaculada Property can be broadly classified as LS to
HS epithermal silver-gold deposits.
The oldest rocks on the Property are Mesozoic clastic marine sediments of the Soraya Formation
of probable Mid Cretaceous age. The Soraya Formation consists of fine- to medium-grained
sandstones and calcareous sandstones. Overlying the Soraya Formation are continental red beds
of the Cretaceous Mara Formation. The Mara Formation consists of thick-bedded siltstones,
sandstones and conglomerates. Both Mesozoic formations outcrop in the vicinity of the
Minascucho and San Salvador targets on the Property. At these localities, the Mesozoic rocks are
unconformably overlain by volcanic rocks of the Mid Oligocene (30 Ma) Tacaza Group, which
reach a thickness of 600 to 800 m.
The known mineral occurrences on the Property are hosted by the Tacaza Group volcanics and
include Au-Ag quartz veins in the Quellopata, Anta-Patari and Cascara-Huallhua areas. The
Tacaza sequence consists of a thin, basal unit of rhyodacite lapilli tuff, overlain by a thick
sequence of andesitic flows, breccias and tuffs. Some local epiclastic sediments also occur
intercalated within the andesites. Several prospect areas hosting
The Quellopata area, which hosts the Angela vein, is underlain by intercalated andesitic lavas
and breccias of the Tacaza Formation. Northwest trending, southeast dipping faults are the oldest
structures at Quellopata and host the eight veins known as Angela, Roxana, Martha, Teresa,
Lourdes, Shakira, Juliana and Lucy. These faults appear to have been active at various times, as
evidenced by repeated brecciation of the fault breccia.
Target vein structures, hosted in Tertiary-age volcanics, are associated with several episodes of
mineralization. Average vein thicknesses range between 0.8-4.0 m in width and the majority of
vein systems tend to be silver rich, although local variations do occur with zones of lower Ag:Au
ratios. The mapping also showed that the veins were predominantly northeast-trending, with the
exception of the southwestern portion of the area where they trend more westerly.
The Angela vein outcrops in the central portion of the Quellopata area. The vein strikes
northeasterly (050º), dips to the southeast (45º to 90º) and outcrops on surface along a strike
length of 700 m (from line 9600N to 10300N). The vein has been intersected in drilling as far to
P&E Mining Consultants Inc. x

the northeast as line 12000N. The portion of the vein that carries potentially economical
quantities of precious metals so far occurs between 10000N and 11800N. Drilling has defined
the vein extending the known strike length to more than 2,000 m with a vertical extent of up to
300 m and the vein system averaging 12.5 m in width with mineralization remaining open along
strike to the northeast.
Two generations of mineralization have been observed in the Angela vein, an early lead-zinc
event and a later gold-silver event. The early mineralization consists of white quartz veinlets
with sphalerite, galena, pyrite and argentite (minor). These veinlets form a broad, low-grade
envelope (0.2 to 1.0 % Pb + Zn) which surrounds, and overlaps, the Angela vein mineralization.
The second mineralizing event at the Angela vein is the most important economically, and
consists of a white chalcedony vein with associated breccia and stockworks. The chalcedony
contains small amounts (generally < 1 %) of electrum, argentite, pyrargyrite, chalcopyrite, pyrite
and marcasite.
The Angela vein is one of several significant vein systems recognized on the Inmaculada
Property, most of which are relatively underexplored.
From 2007 to May 15, 2010, 149 diamond drill holes totalling 43,376.40 m have been drilled on
the Property. The majority of these drill holes have been drilled on the Angela vein system.
MINERAL RESOURCES AND MINERAL RESERVES
MINERAL RESOURCE ESTIMATES
The Mineral Resources on the Angela Vein were audited by R. Mohan Srivastava, P. Geo. of
FSS Canada Consultants Inc. (“FSS”) of Toronto, Ontario with an effective date of September 9,
2010. This audit was in compliance with NI 43-101 and CIM standards. Mineral measured,
indicated and inferred resources were classified according to the December 2005 CIM
guidelines.
Measured resources are contained entirely in the southwestern portions of the Angela Vein,
where it outcrops and where it has been drilled on 50 m sections, with holes that pierce the vein
at roughly 25 m spacing down dip. There are indicated resources in the central area, where there
is drilling on 50 m sections, with holes that pierce the vein at roughly 50 m spacing down dip. In
the remainder of the deposit, where the average drill hole spacing is greater than 50 m, there are
inferred resources.
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SUMMARY OF CLASSIFIED MINERAL RESOURCES
Table ES.7 summarizes the estimated mineral resources using a cut-off of 3 g/t on the estimated
gold-equivalent grade.
Table ES.7: Mineral Resource Estimate for the Angela Vein at a Cut-Off Grade of 3 g/t
AuEq (as of September 9, 2010)
GRADE IN SITU METAL CONTENT 1
Tonnage AuEq2 AuEq2

CLASSIFICATION (Mt) Au (g/t) Ag (g/t) (g/t) Au (oz) Ag (oz) (oz)
Measured 1.080 5.10 107 6.9 178,000 3,717,000 240,000
Indicated 2.747 4.00 137 6.3 354,000 12,128,000 556,000
Measured + Indicated 3.827 4.30 129 6.5 532,000 15,845,000 796,000
Inferred 4.388 4.60 200 7.9 645,000 28,283,000 1,116,000
1. Metal content is 100 % of estimated metal in situ. IMZ will hold 40 % of the Property (60 % Hochschild) as
2. Gold equivalent is calculated as Gold + (Silver ÷ 60) to reflect current metal prices and current information on
relative metallurgical recoveries.
3. Numbers have been rounded to reflect the precision of a resource estimate.
There are no mineral reserves on the Inmaculada Property.
MINEABLE MINERAL RESOURCE ESTIMATE
A summary of the mineable portion of the undiluted Angela vein resources is presented in Table
ES.8.
Table ES.8: Mineable Portion of the Undiluted Angela Vein Resource
Stoping Blocks Tonnes Au (g/t) Ag (g/t) AuEq (g/t)

SZ1 1,338,427 4.78 105 6.53
SZ2 2,611,090 3.30 145 5.71
NZ1 1,331,231 7.23 228 11.03
NZ2 1,754,550 4.12 190 7.28
Total Angela 7,035,299 4.53 164 7.27
Of the total 8.2 Mt of measured, indicated and inferred resources in the Angela vein an estimated
7.0 Mt grading 4.53 g/t Au and 164 g/t Ag is considered mineable before dilution and mine
extraction (recovery).
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A summary of the total diluted recovered mineable portion of the Angela vein resources is
presented in Table ES.9.
Table ES.9: Total Diluted Recovered Mineable Portion of the Angela Vein Resource
Stope Area Total Tonnes Au (g/t) Ag (g/t) AuEq (g/t)

Total SZS1&N1 1,529,703 3.98 87 5.44
Total SZS2&N2 2,976,643 2.75 121 4.76
Total NZS1&N1 1,517,604 6.03 190 9.19
Total NZS2&N2 2,006,000 3.44 158 6.08
Total Angela 8,029,949 3.78 137 6.06
A total of 8.0 Mt, grading 3.78 g/t Au and 137 g/t Ag, is estimated to be recovered from the
Angela vein after 20 % mine dilution, at zero grade, and 95 % mine extraction (recovery).
MINING OPERATION
Access to the underground stopes will be via main north and south ramps driven in the footwall
at a -15 % grade. A ramp access cross-cut will be driven from these ramps every 480 m
(approximately) along strike to four spiral ramps that follow the full footwall extent of the
Angela vein mineralization. Stope access cross-cuts will be driven every 25 m vertical to the
Angela vein. The Angela vein is divided into four stoping blocks, SZ1, SZ2, NZ1 and NZ2, each
centred on one spiral. Each stope will have a north and south stoping area developed from
sublevels driven in mineralization on strike a maximum 244 m from the stope access cross-cuts.
Slot / exhaust raises will be driven at the end of each drift in mineralization to the sublevel 25 m
above. Stope mining will retreat from the slot / exhaust raise to the stope access cross-cut in
25 m high lifts.
The deposit geometry indicates the potential application of a bulk mining method with
longitudinal longhole sublevel retreat mining, with paste backfill, proposed. Stope mining will
retreat from the slot / exhaust raise to the stope access cross-cut in 25 m high lifts, and from the
bottom up. Initial development consists of a drift and overcut, and a drift and undercut created at
the top and bottom, respectively, of the first 25 m high mining block. A slot raise is driven at the
end of each stope. Down dip long holes will be drilled approximately 20.5 m long, and 92 mm in
diameter, on a 2 m by 2 m burden and spacing pattern from the sublevel above to break through
into the undercut. Drilling of holes for the stopes would utilize an ITH drill mounted on a rubber
tired diesel powered carrier. All holes would be loaded with ANFO and initiated using non-el
caps. The blasting power factor will be 0.6 kg/t. Stopes would be blasted in a series of blasts
comprising 4 or 5 rings at a time. Mucking of stopes would be carried out in the undercut with
4.5 m3 Load-Haul-Dump (“LHD”) units loading at the stope brow and later remotely in the
stopes. The LHD would transport ore back to the stope access cross-cuts ore pass. Paste backfill,
with 3 to 4 % cement content, will be placed in the stope behind the stope mining face as it
advances, from the upper drift sublevel. High strength cemented paste backfill will be required in
the stope above ( first and lowest stope block) the sill stope After filling the backfill would be
P&E Mining Consultants Inc. xiii
left to cure for approximately 15 days before the next stope blast is initiated. Backfill would be
piped into the void via piping hung from the back of the overcut of a stope. This sequence of
drilling, blasting and backfilling will continue until the central access is reached. The next
vertical 25 m stope above is then mined with mucking on the fill of the stope below taking place.
The initial stope, directly above a ‘sill’ stope, will be backfilled with high strength cemented
paste backfill.
To optimize the number of working areas, stoping areas will be started every 125 m vertical.
This will include four 25 m high regular stopes and one 25 m high sill stope. Stoping drifts will
be driven 4.0 m wide by 4.5 m high. In sublevel drifts where mineralized widths are greater than
4.0 m wide drifts will be slashed to footwall and hanging wall contacts.
MINERAL PROCESSING
For the purposes of this study it was decided to focus on two primary testing options:
• Flotation to produce concentrate for shipment and sale to a third party smelter.
• Agitation leaching to produce dore bars on site.
It appears that the deposit is amenable to flotation and will produce commercially acceptable
concentrate grades at high concentration ratio similar to IMZ’s Pallancata deposit. IMZ’s grind
size evaluations indicate that feed to flotation should be in the P80 45 to 75 micron range at gold
and silver prices of $1,000 and $17 per ounce. Adequate grinding capacity has been included in
plant design to attain the finer grind size. Rougher flotation residence times were set at twice
those indicated by laboratory testing. Cleaner flotation times are considered “typical” and
adequate for this study pending further testwork.
Based on the available information, P&E assesses the test work to be thorough and performed to
acceptable standards. The initial flotation test results indicate that the Inmaculada deposit is
amenable to the production of a commercially acceptable gold and silver bearing flotation
concentrate. The testing also indicates that metal recoveries at a grind of 45 microns in the
concentrate can be expected to be acceptable, ranging from 85 % to 90 % for gold and 80 % to
85 % for silver.
For the purposes of this study “base case” metallurgical recoveries for the flotation process were
set at 88 % gold and 83 % silver based on the average results from P80 45 micron tests for all
three zones. Mass pull to final concentrate has been assumed to be 1 % of mill feed.
CAPITAL AND OPERATING COST ESTIMATES
The LOM total capital, less working capital, is US$270 million. A summary of capital
expenditure on a yearly basis is presented in Table ES.10. Pre-production capital totals
US$168 million. Sustaining capital totals US$110 million. Working capital is re-captured as a
negative cash operating cost in Year 8 (Table ES.10).
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Table ES.10: Project Capital Cost Summary (US$M)
Item Year -2 Year -1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Total
Power Transmission Line 5.1 11.9 17
Access road 4.6 4.6
Mine Development 0 10.2 20.4 14.7 32.1 13 9.8 2 0.8 102.9
Mine
Infrastructure/Equipment. 5.1 11.9 17
Mill and Ancillary facilities 21.4 50 71.4
Tailings and Fresh Water
Supply 4.5 10.4 0.5 15.4
Subtotal 40.7 94.3 20.4 14.7 32.7 13 9.8 2 0.8 228.3
Contingency 32.9 32.9
Closure and Salvage 8.4 8.4
Working Capital 8.8 8.8
Total Capital 40.7 127.2 29.1 14.7 32.7 13 9.8 2 0.8 8.4 278.3
Note: Table ES.10 represents 100 % of the Property. IMZ will hold 40 % of the Property (60 % Hochschild) as outlined in framework agreement announced
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The average mining cost per tonne milled is estimated to be US$18.79. Processing costs will
average US$$11.53/t, smelting and refining costs average US$11.82/t milled, general and
administration (“G&A”) costs will average US$7.73/t milled and recaptured working capital is
estimated to be US$1.09/t milled for a total cash operating cost of US$48.79/t milled. With
royalties the LOM cash cost is estimated to be US$52.08/t milled. Table ES.11 is a summary of
these costs.
Table ES.11: Summary of Cash Cost Per Tonnes Milled
Description US$/t Milled

Mining 18.79
Processing ($/t treated) 11.53
Smelting and Refining ($/t treated) 11.82
G&A 7.73
Recaptured Working Capital -1.09
Subtotal Cash Operating Costs 48.79
Royalties 3.29
Total Cash Costs/t Milled 52.08
P&E Mining Consultants Inc. xvi

1.0 INTRODUCTION AND TERMS OF REFERENCE
1.1 TERMS OF REFERENCE
The following is a Technical Report and Preliminary Economic Assessment (the “Report”)
prepared by P&E Mining Consultants Inc. (“P&E”) regarding the Angela vein deposit on the
Inmaculada Property located in the provinces of Parinacochas and Paucar de Sara Sara,
Department of Ayacucho, Southern Perú (the “Property”). This Report has been prepared in
compliance with the requirements of Canadian National Instrument (“NI”) 43-101 and in
accordance with the guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum
(“CIM”), Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by
the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December
11, 2005 (CIM 2005).
This report was prepared at the request of Mr. Nick Appleyard, VP Corporate Development of
International Minerals Corporation (“IMZ”). IMZ is a USA-based public company listed for
trading on the Toronto and Swiss Stock Exchanges under the symbol of “IMZ”, with its
corporate offices at:
7950 E. Acoma Drive

Suite 211
Scottsdale, AZ
United States 85260
Tel: +1 480 483 9932

Fax: +1 480 483 9926
This report is considered current as of September 9, 2010.
Paucar de Sara Sara in the Ayacucho Department. Title to the Inmaculada Property is held by
Minera Quellopata S.A.C (“Minera Quellopata”), the operating company set up in August 2009
under the terms of an option and joint venture (“JV”) agreement between IMZ and Hochschild
Mining PLC (“Hochschild”). Subsequent to the effective and filing dates of this Report, IMZ
announced on October 12, 2010 that it had signed a framework agreement with Hochschild
whereby Hochschild would hold a 60 % interest (IMZ 40 %) and become the operator of the
Inmaculada Property.
READERS OF THE PRECEDING FRAMEWORK AGREEMENT DISCLOSURE ARE

REALIZED.
held 100 % by Minera Quellopata. The concessions are in good standing as of the effective date
of this report.
The deposits on the Inmaculada Property can be broadly classified as epithermal silver-gold vein
deposits. The Quellopata area, which hosts the Angela vein, is underlain by intercalated andesitic
P&E Mining Consultants Inc. Page 1 of 170

lavas and breccias of the Tacaza Formation. Northwest trending, southeast dipping faults are the
oldest structures at Quellopata and host the eight veins known as Angela, Roxana, Martha,
Teresa, Lourdes, Shakira, Juliana and Lucy. The Angela vein is one of several significant vein
systems recognized on the Inmaculada Property, most of which are relatively underexplored.
The financial evaluation in this Preliminary Economic Assessment was done on a 100 % basis
and does not separate the cash flows of the partners in this project.
The technical report on the Inmaculada Property has been prepared by P&E. P&E’s terms of
reference focused on the mining engineering and processing aspects of the Project and
encompassed the following:
• The metal price used were recommended by IMZ and accepted by P&E.
• The mine design, and operating and capital estimates were prepared by P&E.
• The mine and mill production schedules were prepared by P&E.
IMZ provided overall management and coordination of the Preliminary Economic Assessment
including liaison with its mining, metallurgical and surface infrastructure consultants. IMZ
provided study results to P&E for use in developing the Preliminary Economic Assessment and
providing P&E with additional information as requested by P&E.
The general areas in which in which IMZ’s consulting firms and IMZ provided Preliminary
Economic Assessment input are as follows.
• The independent development of the mineral resource estimate for Inmaculada’s Angela
vein was prepared by R. Mohan Srivastava, P. Geo. of FSS Canada Consultants Inc.
(“FSS”) of Toronto, Ontario.
• The mineral beneficiation process, plant design, operating and capital cost estimates were
prepared by IMZ and their consultants, which was reviewed and accepted by P&E.
• Golder Associates Perú S.A. (“Golder”) prepared the conceptual design and capital cost
estimate of tailings disposal and water supply facilities.
• Cosapi Ingenieria y Construccion (“Cosapi”) of Peru prepared the engineering and capital
cost estimate of the electric power transmission line. Cosapi also prepared the
engineering and capital cost estimate of the mine access road.
• IMZ prepared the royalty, smelter and refining and general and administration (“G&A”)
operating cost estimates.
• IMZ prepared the working capital, and closure and salvage capital cost estimates.
• IMZ prepared the cash flow model which was reviewed and accepted by P&E.

IMZ provided the above itemized information to P&E which in turn reviewed the information
and prepared the technical report. All sections of this Report have been reviewed and approved
for inclusion in the Report by the independent Qualified Persons (“QP’s”) responsible for them.
1.2 SITE VISITS
A site visit to the Inmaculada Property on June 10 to 11, 2010 has been carried out by Mr. David
Burga, P. Geo. and Mr. James Pearson of P&E both QP’s under the terms of the NI 43-101 who
have provided specific input into this Report. Mr. Rafael S. Dávila, P. Eng. of Golder, a QP
under the terms of NI 43-101 who provided input into this Report, visited the site on July 1 to 2,
2010.
1.3 UNITS AND CURRENCY
Metric units of measure have been used throughout this Report, unless noted otherwise. Costs
have been estimated in United States dollars (“US$”).
Gold (“Au”) and silver (“Ag”) metal assay values are reported in grams per tonne of metal
(“g/t”) unless ounces (“oz”) are specifically stated.
The coordinate system used by IMZ for locating and reporting drill hole information and channel
sampling is UTM / PSAD 56, zone 18. Maps in this Report use either these coordinate systems
or latitude and longitude.
1.4 SOURCES OF INFORMATION
This report is based, in part, on internal company technical reports, and maps, published
government reports, company letters and memoranda, and public information as listed in the
"References” Section 20.0 at the conclusion of this report. Several sections from reports authored
by other consultants have been directly quoted or summarized in this Report, and are so
indicated where appropriate.
It should be noted that the authors have relied heavily upon selected portions or excerpts from
material contained in the following NI 43-101 compliant technical report. The report is publicly
available on SEDAR (www.sedar.com):
A Mineral Resource Estimate for the Angela Vein at the Inmaculada Project, Provinces of
Parinacochas and Paucar De Sara Sara, Department of Ayacucho, Southern Peru. NI 43-101
technical report prepared by Micon International Limited, amended date March 26, 2009.
1.5 GLOSSARY OF TERMS
Abbreviation Description
°C Degrees Celsius
< Less than
> Greater than
% Percentage
µ Microns
AAS Atomic absorption spectrophotometry
AES Atomic emission spectroscopy
Ag Silver
asl Above sea level
Au Gold
AuEq Gold equivalent
BISA Buenaventura Ingenieros S.A.
Bradley Bradley-MDH
Capex Capital expenditure
CIM Canadian Institute of Mining, Metallurgy and Petroleum
Cosapi Cosapi Ingenieria y Construccion
Cu Copper
ddh Diamond (core) drill hole
d Day
E East
ENE East-northeast
ESE East-southeast
ESIA Environmental and Social Impact Assessment
FAR Fresh air raise
FSS FSS Canada Consultants Inc.
g Gram
g/t Grams per tonne
Golder Golder Associates Perú S.A.
h Hour
ha Hectare
Hochschild Hochschild Mining PLC
HS High sulphidation
ICP Inductively coupled plasma
IMZ International Minerals Corporation
IP Induced polarization
IRR Internal rate of return
IS Intermediate sulphidation
JV Joint Venture
kV Kilo volt
kVA Kilo volt-ampere
kg/t Kilograms per tonne
km Kilometre
km2 Kilometres squared
km/h Kilometres per hour
LAN Local area network
LHD Load-haul-dump
LIMS Laboratory information management system
LOM Life of mine
LS Low sulphidation
m Metre
m3 Cubic metre
M Million
Ma Millions of years
MINEM Ministry of Energy and Mines
Minera Quellopata Minera Quellopata S.A.C.
Mitsui Mitsui Mining Corporation
mm Millimetre
Mt Million tonnes
Mtpa Million tonnes per annum (year)
N North
NE Northeast
NI National Instrument (43-101)
NNE North-northeast
NNW North-northwest
NPV Net present value
North Compania North Minera S.A.
NW Northwest
NSR Net Smelter Return
oz Ounces
P&E P&E Mining Consultants Inc.
Pb Lead
PLC Programmable logic controller
ppm Parts per million
QA/QC Quality assurance / quality control
QC Quality control
QP Qualified person
S South
S/. Peruvian Nuevos Soles
SE Southeast
SEDAR System for Electronic Document Analysis and Retrieval
SGS SGS del Perú S.A.C.
SSE South-southeast
SSW South-southwest
SW Southwest
t Tonnes (metric measurement)
t/h Tonnes per hour
t/m3 Tonnes per cubic metre
tmf Tailings management facility
tpd Tonnes per day
TSX Toronto Stock Exchange
UIT Unidad Impositiva Tributaria
US$ United States dollars
UTM Universal Transverse Mercator
V Volts
Ventura Ventura Gold Corporation
W West
WNW West-northwest
WSW West-southwest
wt% Weight percentage
Zn Zinc

2.0 RELIANCE ON OTHER EXPERTS
P&E has assumed, and relied on the fact, that all the information and existing technical
documents listed in the References section of this Report are accurate and complete in all
material aspects. While we carefully reviewed all the available information presented to us, we
cannot guarantee its accuracy and completeness. We reserve the right, but will not be obligated
to revise our Report and conclusions if additional information becomes known to us subsequent
to the date of this Report.
Although copies of the tenure documents, operating licenses, permits, and work contracts were
reviewed, an independent verification of land title and tenure was not performed. P&E has not
verified the legality of any underlying agreement(s) that may exist concerning the licenses or
other agreement(s) between third parties but has relied on the clients solicitor’s to have
conducted the proper legal due diligence. IMZ was responsible for providing information to P&E
on the Inmaculada concessions.
A draft copy of the Report has been reviewed for factual errors by the client and P&E has relied
on IMZ’s historical and current knowledge of the Property in this regard. Any statements and
opinions expressed in this document are given in good faith and in the belief that such statements
and opinions are not false and misleading at the date of this Report.

3.0 PROPERTY DESCRIPTION AND LOCATION
3.1 LOCATION
Paucar de Sara Sara in the Ayacucho Department situated approximately at latitude 14°57'27"S
and longitude 73°14'42"W (Figure 3-1). The Property is found at elevations between 3,900 and
4,800 m asl in the Puquio-Caylloma Belt and is approximately 210 km southwest of the town of
Cuzco and 530 km southeast of Lima, the capital of Perú. The Property is located within the
UTM coordinates in Table 3.1 below.
Table 3.1: Inmaculada Property UTM Coordinates
Easting Northing
677000 8358000
702000 8358000
677000 8339000
702000 8339000
Figure 3-1: Location Map for the Inmaculada Property

3.2 PROPERTY OWNERSHIP AND AGREEMENTS
READERS OF THE FOLLOWING FRAMEWORK AGREEMENT DISCLOSURE ARE

REALIZED.
Title to the Inmaculada Property is held by Minera Quellopata, the operating company set up in
August 2009 under the terms of an option and JV agreement between IMZ and Hochschild.
The terms of the original JV agreement set up between Ventura Gold Corporation (“Ventura”)
and Hochschild were signed on February 12, 2007 (Ventura News Release, February 12, 2007)
and are summarized below as follows:
• To acquire an initial 51 % interest in the Property, within a 3 year period from date of
agreement, Ventura needed to complete 15,000 m of drilling. In addition, Ventura was to
issue to Hochschild a total of 1.0 million common shares and 200,000, 300,000 and
400,000 shares on the 1st, 2nd and 3rd anniversaries. Ventura will be the operator of the
exploration activities.
• Upon Ventura acquiring its 51 % interest, Hochschild would have a one-time back-in
right. If Hochschild elected not to exercise this right, a JV company was to form.
• Ventura could then elect to complete, at its sole expense, a feasibility study on the
Property within six years of the agreement date. Upon completion of such a feasibility
study, Ventura would earn an additional 19 % participating interest (for an aggregate
70 % interest) in the JV.
• After acquiring its 51 % interest, Ventura must thereafter issue an additional 2.0 million
common shares of Ventura to Hochschild, as to 400,000 common shares per year for a
period of five years.
• If either party’s participating interest in the joint venture was reduced (based on dilution)
to 15 % or less, then such participating interest would be converted automatically to a
3 % Net Smelter Return (“NSR”) royalty payable upon commencement of any
commercial production on the Property. The 3 % NSR royalty can be purchased by the
non-diluting party at any time for US$1,000,000 per 1 % of NSR royalty.
Ventura drilled a total of 15,063 m during 2007-2008 to complete one of the requirements for
earning its 51 % equity position in the Property. The evidence to support the completion of
drilling was presented to Hochschild in early November 2008 (Ventura News Release,
December 3, 2008). Ventura announced its intention to earn an additional 19 % participating
interest by solely funding and delivering a feasibility study on the Property by October 23, 2013
as outlined in the joint venture agreement (Ventura News Release, April 20, 2009).
IMZ acquired Ventura’s 51 % interest in the Property on January 12, 2010, through its
acquisition of all of the issued and outstanding shares of Ventura in an all share corporate
takeover of Ventura (one share of IMZ for every 10 shares of Ventura) (IMZ News Release,
January 12, 2010). IMZ intended to advance the project towards a feasibility study in order to
earn a 70 % interest in Minera Quellopata by September 2013.

Subsequent to the effective and filing dates of this Report, IMZ announced on October 12, 2010
that it had signed a framework agreement with Hochschild whereby Hochschild would hold a
60 % interest and become the operator of the Inmaculada Property.
Below are the principal terms of the framework agreement:
• Hochschild will pay to IMZ US$15 million in cash on closing of the transaction.
• Hochschild will undertake an equity investment in IMZ of US$20 million in the form of a
private placement at a price of CDN$5.525 per share. Subject to regulatory approval, the
placement is expected to close on or before October 25, 2010.
• Hochschild will provide 100 % of the initial $100 million of funding required for the
planning, development and construction of a mining operation at the Angela vein deposit
at Inmaculada. Any subsequent expenditures will be funded 60 % by Hochschild and
40 % by IMZ.
• IMZ is no longer required to complete a feasibility study at Inmaculada, nor to issue

200,000 common shares to Hochschild.
• Hochschild will commit to building a mining operation at the Angela vein deposit with a
process capacity of 3,000 tpd (unless the parties agree that such capacity is not optimal)
within three years of closing of the transaction, subject to any unforeseen delays out of
the control of Hochschild.
• If Hochschild fails to achieve the process capacity within the three-year period, then
Hochschild must make quarterly pre-payments to IMZ during the period of any delay
based on the parties’ joint estimate of IMZ’s 40 % share of income / cash flows that
would have been generated if production had started on schedule.
• Hochschild will be operator of the project. Upon commencement of commercial

production, Hochschild will charge the JV company a 7.0 % management services fee
based on the aggregate operating costs incurred by the JV during such mining operation.
• The management fee currently charged by Hochschild for the Pallancata Mine will be
reduced from 10.0 % to 7.0 % from the date of closing of the transaction.
• IMZ and Hochschild will contribute to the Inmaculada joint venture their respective
ownerships in the Pacapausa property (80 % Hochschild / 20 % IMZ), located adjacent to
the Pallancata Mine and the Puquiopata property (100 % IMZ), situated on the northern
edge of the Inmaculada Property. These contributions will result in both properties being
owned 60 % by Hochschild and 40 % by IMZ.
• A minimum of 20,000 m of drilling per year for the first three years following the closing
of the transaction (the ‘Exploration Drilling Program’) must be carried out for evaluation
of exploration targets outside of the main Angela vein deposit. The Exploration Drilling
Program will be funded 60 % by Hochschild and 40 % by IMZ.

• Based on corporate and taxation considerations for Inmaculada, IMZ and Hochschild will
either (a) use the existing Inmaculada JV company, Minera Quellopata; or (b) use the
existing Pallancata Mine JV company, Minera Suyamarca S.A.C.; or (c) may form a new
Peruvian JV company, whose shares will be held 60 % by Hochschild and 40 % by IMZ.
• Closing of the transaction, including transfer of property interests and definitive

documentation is expected by December 2010.
3.3 PROPERTY DESCRIPTION AND TENURE
(Figure 3-3). All of the concessions are held 100 % by Minera Quellopata.
Fees and penalties in the amount of US$255,311.98 were paid in June 30, 2010. The claims are
in good standing until June 30, 2011, at which time fees and penalties estimated at
US$118,931.98, must be paid (Table 3.2). As a result of the exploration expenditures made by
Minera Quellopata during 2010, most of the “penalties” will not be required to be paid (Table
3.2).

Figure 3-3: Inmaculada Property Mining Concessions

Table 3.2: Inmaculada Mining Concessions
Fees &
Fees Paid Penalties Penalties
2010 Paid 2010 Estimated
Concession Code Area (ha) (US$) (US$) 2011 (US$) Owner
CANCALLA 2 10584095 823.3169 $2,469.95 $16,466.34 $18,936.29 Minera Quellopata
INMACULADA 20 2006 10193006 999.9983 $2,999.99 $19,999.97 $2,999.99 Minera Quellopata
INMACULADA 67 10141704 300.0000 $900.00 $6,000.00 $900.00 Minera Quellopata
INMACULADA 77 10039305 177.3728 $532.12 NPPA $532.12 Minera Quellopata
INMACULADA 78 10127005 250.4765 $751.43 $5,009.53 $751.43 Minera Quellopata
INMACULADA 80 10100806 4.7300 $14.19 NA $14.19 Minera Quellopata
INMACULADA N°13 10010705X01 449.9998 $1,350.00 NPPA $1,350.00 Minera Quellopata
INMACULADA N°3 10010695X01 1000.0000 $3,000.01 $20,000.07 $23,000.08 Minera Quellopata
INMACULADA N°33 1011457XX01 976.5025 $2,929.51 $19,530.05 $2,929.51 Minera Quellopata
INMACULADA N°34 1011457YX01 373.9997 $1,122.00 NPPA $1,122.00 Minera Quellopata
INMACULADA Nº 38 10197205 399.9985 $1,200.00 $7,999.97 $1,200.00 Minera Quellopata
QUELLOPATA 10004999 162.1163 $486.35 NPPA $486.35 Minera Quellopata
MINASCUCHO 2007A 10035007 999.9981 $2,999.99 $19,999.96 $2,999.99 Minera Quellopata
MINASCUCHO 2007B 10034907 824.8503 $2,474.55 $16,497.01 $2,474.55 Minera Quellopata
TARARUNQUI 2007A 10035107 999.9994 $3,000.00 $19,999.99 $3,000.00 Minera Quellopata
TARARUNQUI 2007B 10035207 999.9983 $2,999.99 $19,999.97 $2,999.99 Minera Quellopata
QUELLOPATA 2008A 10021908 564.6105 $1,693.83 NA $1,693.83 Minera Quellopata
INMACULADA 2009-1 10170409 467.6250 NA NA $1,402.88 Minera Quellopata
INMACULADA 2009-4 10219009 165.6140 NA NA $496.84 Minera Quellopata
INMACULADA 2010-1 10204610 300.0000 NA NA Minera Quellopata
TOTAL 19,359.4521 $43,821.97 $211,490.01 $118,931.53
* NPPA – Payment not required as minimum investment reached

3.4 PROPERTY BOUNDARIES
The concessions which comprise the Inmaculada Property were first located by Mitsui Mining
Corporation (“Mitsui”) using the old Peruvian claim-staking system, by which claims were
demarcated by reference to local topographic points. In 1992, Perú adopted a new claim-staking
system using UTM coordinates. At that time, all pre-existing mining concession corner points
were converted to UTM coordinates. No surveys of the Property boundaries have been
performed.
3.5 PERU’S MINING TITLE LAWS
Under Peruvian law, the right to explore for and exploit minerals is granted by way of mining
concessions. A Peruvian mining concession is a property right, independent from the ownership
of land on which it is located. The concession can be defended against possible claim by third
parties, transferred or sold, leased, mortgaged and may be inherited in families. In general, a
mining concession may be the subject of any transaction or contract. Government authorization
is not required for this purpose.
According to the relevant mining law (Ley del Catastro Minero Nacional, Ley No. 26615), the
basic unit for newly claimed mineral concessions is 100 ha to a maximum of 1,000 ha. The
concession is irrevocable and indefinite as long as its holder fulfills the obligations prescribed by
law to maintain them. There is no limit to the number of concessions that may be held by a
company or individual.
Since the year 2001, the concession holder has had the obligation to pay an annual rent
(“derecho de vigencia”) of US$3.00 per hectare by June 30 of each year (previously, and since
1991 it was of US$2.00 per hectare). The annual obligation to pay concession rights can be
postponed for one year but if it is not paid for two consecutive years then the concession expires.
According to the General Mining Act (the ‘Mining Act’), which single unified text was approved
by Supreme Decree No. 14-92-EM (Texto Único Ordenado de la Ley General de Minería) the
mining concession holder must sustain a minimum level of annual commercial production of
US$100 per hectare in gross sales within six years of the grant of the concession. If the mining
concession has not been put into production within that period, then the mining concession
holder must make an additional payment called Penalty (Penalidad) of US$6.00 per hectare for
the 7th through 11th year following the granting of the mining concession and of US$20.00 per
hectare thereafter. The mining concession holder shall be exempted from the Penalty if the
investment made during the previous year was 10 times the Penalty (i.e.US$60 per hectare per
year for 7th through to 11th years). The above mentioned applies for mining concessions granted
before October 10, 2009. Pursuant to the Legislative Decrees No. 1010 and No. 1040, all
concessions granted after such date will be ruled by the following: the mining concession holder
must sustain a minimum level of annual commercial production of 1 Unidad Impositiva
Tributaria (“UIT”) per hectare in gross sales within 10 years of the grant of the mining
concession (the UIT is updated each year, and its value for 2009 is S/.3,350 which is
approximately US$1,180). If the mining concession has not been put into production within that
period, then the mining concession holder must pay an additional penalty of 10 % of the UIT per
hectare for the 11th through 15th year following the granting of the mining concession and, to
avoid the expiration of the mining concession, a payment of the same penalty per hectare (10 %
of the UIT) must be made plus a minimum level of investments (i.e. exploration or development)
of 10 times the penalty for the 16th through 20th year following the granting of the mining

concession. Thereafter, if the mining concession holder does not put the mining concession into
production the mining concession will expire. According to the Supreme Resolution No. 044-
2008-EM the changes made by the Legislative Decrees above mentioned will be in force for the
mining concessions granted before October 10, 2009.
Peruvian law also states that no payment is required on the portion of overlapping hectares with
another concession.
3.6 PERMITS
Four drilling permits have been acquired by IMZ during its tenure as operator of the Inmaculada
joint venture project. These include:
• 2007: Declaracion Jurada Proyecto Inmaculada. Permit to drill using 5 platforms

• 2008: Evaluacion Ambiental Proyecto Inmaculada Categoria C. Permit to drill using 15
platforms.
• 2008: Estudio de Impacto Ambiental Semidetallado Categoria II Proyecto Inmaculada.
Permit to drill using 67 platforms. Expired November, 2009.
• 2010: Segunda Modificatoria del Estudio de Impacto Ambiental Semidetallado Categoría
II Proyecto Inmaculada. In progress
3.7 SURFACE RIGHTS
Minera Quellopata holds a 25-year lease from the community of Huallhua, on 870 ha of land for
a period of 25 years effective November 25, 2009.
3.8 ENVIRONMENTAL LIABILITIES
The reader is referred to Section 25 for further information on environment considerations.

4.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND
PHYSIOGRAPHY
The following section is sourced and summarized from the previous technical report on the
Property by Hennessey and Pressacco (2009).
4.1 ACCESSIBILITY
The total travel time from Lima to the Inmaculada Property is approximately 15.5 hours. The
Property is accessible from Lima by means of the Pan-American highway to Nasca, then as far
as Iscahuaca via the east-bound Nasca-Cuzco highway, then by dirt road from Iscahuaca to the
Huanacmarca turn-off and finally via dirt road through the communities of Sauricay and Sorani.
Alternatively, access can be gained by travelling west on the Nasca-Cuzco highway from Cuzco,
through Urubamba and Chalhuanca, to Iscahuaca and following the same gravel roads to the
Property. The closest hotel to the Property is in Chalhuanca. Travel time by road from Cuzco to
Chalhuanca is about 5.5 to 6 hours, with a further hour travel to Iscahuaca. Cuzco is served by
several daily jet flights from Lima.
4.2 CLIMATE
The climate in the area is characteristic of ‘Puna’, with rain and snow between December and
March, followed by a dry season between April and September.
4.3 LOCAL RESOURCES AND INFRASTRUCTURE
Labourers for the project are readily available from the nearby communities. People from the
local villages were used for various duties at the project. Perú has an adequate supply of
university educated geologists to manage the exploration program.
The Property is located close to high tension power lines of the Electro Sur del Perú electric
system, which reportedly can supply sufficient power for any mining operation. Hochschild
currently operates several mines in the region.
4.4 PHYSIOGRAPHY
The Property is located in the high altitude ‘Puna’ region of Perú, with elevations on the
Property varying between 3,900 and 4,800 m asl. Surface topography is generally moderate in
the immediate vicinity of the Angela vein to locally very steep in the region. Vegetation is sparse
consisting of grasses (ichu and pajonal).

5.0 HISTORY
The following section is sourced and summarized from the previous technical report on the
Property by Hennessey and Pressacco (2009).
Exploration on the Inmaculada Property commenced in 1990 and is summarized below.
Table 5.1: Historical Exploration on the Inmaculada Property, 1990-2005
Year Company Exploration

Nature and extent of work not known. Property sold and
1990 – 1992 Mitsui concessions transferred to Hochschild.
Hochschild / LAC Hochschild signed a JV agreement with LAC Minerals. No
1994 Minerals work performed.
Hochschild / Hochschild signed a JV agreement with North. Nature and
Compania North extent of work not known. Property reverted to Hochschild
1995 Minera S.A. (“North”) at end of first year.
Through Hochschild subsidiaries Minera Andes S.A.C. and
Minera Argento S.R.L. performed the following:
• Regional mapping and sampling (1:25,000)
• Construction of access road from Sauricay
• Geological mapping of Tararunqui, Quellopata,
Minascucho and San Salvador (1:5,000)
• Rock chip sampling at Tararunqui (293 samples),
Quellopata (1,665 samples), Minascucho – San Salvador
(210 samples).
• Soil sampling (186 samples).
• Geophysical surveys: magnetometer (51.77 line-km),
IP/Resistivity (29.2 line-km) and Gradient IP (21 line-
km) at 3 targets.
• DDH at Tararunqui (11 holes at 1,479.29 m), Quellopata
(31 holes at 7,188.40 m) and Minascucho (2 holes at
1998 – 2005 Hochschild 440 m)
Ventura commenced exploration and drilling on the Property in 2007. Exploration and drilling
on the Property from 2007 to the present day is detailed in Sections 9 and 10 of this Report.

6.0 GEOLOGICAL SETTING
The following section is sourced from the previous technical report on the Property by
Hennessey and Pressacco (2009).
6.1 REGIONAL GEOLOGY OF PERU
The Inmaculada Property is located in the Western Cordillera of southern Peru, which consists of
Cretaceous and Tertiary volcanics and to a lesser extent sedimentary sequences with Tertiary
intrusive (Figure 6-1). Gold deposits are located within the Cenozoic Puquio-Caylloma Belt and
are associated with volcanics and intrusions. Ore zones are hosted in volcanic rocks as
epithermal Ag-Au mineralized quartz vein systems including the Low Sulphidation (“LS”)
Pallancata, Ares and Explorador deposits, Intermediate Sulphidation (“IS”) Arcata and Caylloma
deposits and High Sulphidation (“HS”) Shila, Paula, Selene, Suyckutambo, Chipmo and
Poracota deposits.
Figure 6-1: Simplified Regional Geology of Perú
Taken from Alden (2001)

6.2 PROPERTY GEOLOGY
The oldest rocks within the Property are Mesozoic clastic marine sediments of the Soraya
Formation of probable Mid Cretaceous age. The Soraya Formation consists of fine- to medium-
grained sandstones and calcareous sandstones. Overlying the Soraya Formation are continental
red beds of the Cretaceous Mara Formation. The Mara Formation consists of thick-bedded
siltstones, sandstones and conglomerates. Both Mesozoic formations outcrop in the vicinity of
the Minascucho and San Salvador targets on the Property. At these localities, the Mesozoic rocks
are unconformably overlain by volcanic rocks of the Mid Oligocene (30 Ma) Tacaza Group,
which reach a thickness of 600 to 800 m.
The known mineral occurrences on the Property are hosted by the Tacaza Group volcanics
(Figure 6-2). The Tacaza sequence consists of a thin, basal unit of rhyodacite lapilli tuff, overlain
by a thick sequence of andesitic flows, breccias and tuffs. Some local epiclastic sediments also
occur intercalated within the andesites. Small stocks and dykes of andesitic composition are
found within the Mesozoic basement rocks at Minascucho and San Salvador. These are thought
to represent the feeders to the more voluminous flows and breccias. Small rhyolite domes,
emplaced within Tacaza Group andesites, outcrop in the southwestern portion of Minascucho
and at Tararunqui.
At Minascucho and San Salvador, the uppermost portions of the Tacaza are represented by
laminated sandstones, tuffaceous sandstones and conglomerates which were deposited in a
lacustrine environment, within a graben-like setting (the Minascucho Graben). The lacustrine
sediments attain a thickness of approximately 40 m. Similar types of sediments of lacustrine
origin also occur in the southwest corner of the Quellopata area.
The Tacaza Formation is overlain by the Miocene Alpabamba Formation in the southeastern part
of the Property. The Alpabamba Formation consists of thin sequences of rhyodacite lithic tuffs,
with the total thickness of the formation approximately 800 m.
The Miocene Aniso Formation overlies the Alpabamba Formation and consists mainly of crystal
tuff up to 150 to 200 m in thickness. The Aniso Formation outcrops to the north of the Property
boundary and is overlain by the Pleistocene to Pliocene aged Barroso Group. The Barroso Group
mainly consists of andesitic lavas, lahars and breccias with an aggregate thickness of more than
400 m and occurs at the highest elevations within the Property.

Figure 6-2: Inmaculada Property Geology Map

6.3 GEOLOGY OF THE VEINS ON THE INMACULADA PROPERTY
6.3.1 GEOLOGY OF THE QUELLOPATA VEINS
The Quellopata area, which hosts the Angela vein, is underlain by intercalated andesitic lavas
and breccias of the Tacaza Formation. The andesites are greenish to purplish in colour and
porphyritic. The breccias appear to be autochthonous.
Up to four lava flows have been delineated at Quellopata and are intercalated with volcaniclastic
breccias that consist of andesite clasts within an andesitic groundmass.
Northwest trending, southeast dipping faults are the oldest structures at Quellopata and host the
eight veins known as Angela, Roxana, Martha, Teresa, Lourdes, Shakira, Juliana and Lucy
(Figure 6-3). Relative displacements of marker horizons in cross-sections constructed from core
logging and surface mapping, suggest that these structures are normal faults. These faults appear
to have been active at various times, as evidenced by repeated brecciation of the fault breccia
which makes up a portion of the mineralization (along with vein and stockwork types).
Both northeast trending and east-west trending structures occur at Quellopata. East-west
trending, south dipping faults appear to displace the earlier vein structures. Where offsets have
been observed in surface mapping, the apparent displacement is sinistral.
Four new quartz veins were identified in 2009 to the southeast of Quellopata, namely the
Organa, Marina, Verónica and Rebeca veins, located 650 m to the southeast of Quellopata’s
veins. The veins trend to the northeast-east with azimuths ranging from 050 to 070° and dip
steeply to the southeast.
6.3.2 GEOLOGY OF THE ANTA-PATARI VEINS
The Anta-Patari veins are located 8 km to the southwest of the Quellopata veins (Figure 6-2). Six
low sulphidation Ag-Au epithermal veins are recognized: North Patari, South Patari, Patari, Anta
Norte, Menor and Anta Sur. The vein system strikes northeast to easterly and is approximately
300 m in length. Individual veins trend predominately to the northeast and range between 0.3 to
6.0 m in width. The veins consist mainly of a vein / breccia of colloform-crustiform, stockwork
and saccharoidal quartz. Replacement textures of carbonates by quartz are common, carbonate
veins are minor. Ilmenite-smectite occurs in patches. Cubic pyrite occurs usually associated with
iron and manganese oxides in many places.
6.3.3 GEOLOGY OF THE CASCARA-HUALLHUA VEINS
The Cascara-Huallhua area is located to the southwest of Anta-Patari (Figure 6-2). Three low
sulphidation Ag-Au epithermal veins have been identified: Huallhua, Chaguaya and Ismo. The
Huallhua vein has been mapped for a strike length of approximately 600 m.

Figure 6-3: Geology of the Quellopata Veins

7.0 DEPOSIT TYPES
The Inmaculada deposits can be broadly classified as low to high sulphidation epithermal silver-
gold deposits.
In terms of metallogenesis, the Property lies in the Cenozoic volcanic belt of southern Peru,
known as the Puquio-Caylloma Belt. This belt hosts a number of important epithermal deposits
with Ag-Au mineralization distributed as veins, mantos and disseminated breccias. Deposit sub-
types on the Property include LS type which includes the Au-Ag quartz veins at Quellopata
including the Angela vein, IS type and HS type which includes mineralized breccias at
Minascucho, Central and San Salvador and disseminated mineralization at Tararunqui.
The following sections are summarized from the following reports on epithermal systems:
Panteleyev (1996), Corbett (2002, 2007) and Taylor (2007).
7.1 EPITHERMAL AU-AG DEPOSIT CLASSIFICATION SYSTEMS
Epithermal Au-Ag deposits form in near-surface environments, from hydrothermal systems at

shallow crustal levels (< 1 km) or low temperatures. They are commonly associated with centres
of magmatism and volcanism, but form also in shallow marine settings. Hot-spring deposits and
both liquid- and vapour-dominated geothermal systems are commonly associated with
epithermal deposits. The deposits contain precious metals deposited by the mixing of upwelling
mineralized fluids which contain a magmatic component, with oxidizing ground water.
Much of the gangue mineralogy comprising quartz, adularia, and carbonate forms in response to
the boiling of dominantly meteoric fluids upon periodic, structurally-controlled pressure release,
and so may develop the characteristic banded fissure vein ores.
Historically, epithermal deposits have been exploited for a wide variety of metals and minerals,
however, many of the more economically significant deposits are mined for their precious
metals.
7.2 EPITHERMAL DEPOSIT SUB-TYPES
Epithermal deposits are primarily distinguished using criteria of varying gangue and ore
mineralogy, deposited by the interaction of host rocks and groundwaters with different ore
fluids. The deposits are commonly considered to comprise one of two sub-types: LS and HS
(Figure 7-1 and Table 7.1). Each sub-type is denoted by characteristic alteration mineral
assemblages, occurrences, textures, and in some cases, characteristic suites of associated
geochemical elements.
LS epithermal deposits are distinguished from HS primarily by their sulphide mineralogy. Many
low sulphidation veins are well banded and each band represents a separate episode of
hydrothermal mineral deposition. LS deposits develop from dilute near neutral pH fluids and can
be subdivided further into two groups: those which display mineralogies derived dominantly
from magmatic source rocks (arc low sulphidation) and others with mineralogies dominated
from circulating geothermal fluid sources (rift low sulphidation).

Figure 7-1: LS and HS Epithermal Deposit Model
From Corbett (2007)
Styles of LS Au-Ag are distinguished according to mineralogy and relation to intrusion source
rocks and influence precious metal grade, Ag:Au ratio, metallurgy and Au distribution. The
following subsets of LS have been distinguished by Corbett (2007): quartz-sulphide Au ± Cu;
carbonate-base metal Au; polymetallic Ag-Au; epithermal quartz Au-Ag; chalcedony-ginguro
epithermal Au-Ag. Polymetallic Ag-Au deposits dominate in the Americas as fissure Ag-rich
veins.
IS sub-types are considered to be a subset of LS types. In some epithermal deposits, notably

those of IS sub-type, base metal sulphides may comprise a significant ore constituent.
HS systems vary with depth and permeability control, and are distinguished from several styles
of barren acid alteration. HS systems develop due to the reaction of hot acidic magmatic fluids
with the host rocks, producing characteristic zoned alteration and later sulphide and Au+Cu+Ag
deposition. Ore systems display permeability controls governed by lithology, structure and
breccias and changes in wall rock alteration and ore mineralogy with depth of formation.
Taylor (2007) subdivides based on LS and HS which are further subdivided into those hosted by
volcanic and plutonic rocks and those that are hosted in sedimentary and mixed host rocks.
The polymetallic Ag-Au vein systems of South America typically occur with the following
sulphides: pyrite > sphalerite > galena > chalcopyrite with electrum, Ag sulphosalts (tennantite-
tetrahedrite, argentite) and quartz, carbonate and barite gangue. These systems are considered the
Andean equivalent of the SW Pacific carbonate-base metal gold epithermal systems.

Table 7.1: Characteristics of Epithermal Deposit Sub-Types
Low Sulphidation Intermediate Sulphidation High Sulphidation

Metal Budget Au - Ag, often sulphide-poor Ag - Au ± Pb - Zn; typically Cu - Au - Ag; locally sulphide-
sulphide-rich rich
Host Lithology bimodal basalt-rhyolite andesite-dacite; intrusion andesite-dacite; intrusion
sequences. centred district. centred district.
Tectonic rift (extensional) arc (subduction) arc
Setting
Form and Style vein arrays; open space veins vein arrays; open space veins veins subordinate, locally
of Alteration / dominant; disseminated and dominant; disseminated and dominant; disseminated and
Mineralization replacement ore minor; replacement ore minor; replacement ore common;
stockwork ore common; stockwork ore common; stockwork ore minor.
overlying sinter common; productive veins may be km-
bonanza zones common. long, up to 800 m in vertical
extent.
Alteration ore with quartz-illite-adularia ore with sericite-illite (argillic- ore in silicic core (vuggy
Zoning (argillic); barren silicification sericitic); deep base metal- quartz) flanked by quartz-
and propylitic (quartz-chlorite- rich (Pb-Zn ± Cu) zone alunite-kaolinite (advanced
calcite ± epidote) zones; vein common; may be spatially argillic); overlying barren
selvedges are commonly associated with HS and Cu lithocap common; Cu-rich
narrow. porphyry deposits. zones (enargite) common.
Vein Textures chalcedony and opal common; chalcedony and opal chalcedony and opal
laminated colloform- uncommon; laminated uncommon; laminated
crustiform; breccias; bladed colloform-crustiform and colloform-crustiform veins
calcite (evidence for boiling). massive common; breccias; uncommon; breccia veins;
local carbonate-rich, quartz- rhodochrosite uncommon.
poor veins; rhodochrosite
common, especially with
elevated base metals.
Hydrothermal low salinity, near neutral pH, moderate salinities; near low to high salinities; acidic;
Fluids high gas content (CO2, H2S); neutral pH. strong magmatic component?
mainly meteoric.
Examples McLaughlin, CA; Sleeper and Arcata Perú; Fresnillo Mexico; Pierina Perú; Summitville CO.
Midas, NV; El Peñón, Chile; Comstock NV; Rosia Montana
Hishikari, Japan; Pallancata, Romania.
Perú.
Compiled from Hedenquist et al. (2000) and Hedenquist and White (2005)

8.0 MINERALIZATION
Target vein structures are hosted in Tertiary-age volcanics and are associated with several
episodes of mineralization. Average vein thicknesses range between 0.8-4.0 m in width and the
majority of vein systems tend to be silver rich, although local variations do occur with zones of
lower Ag:Au ratios.
Detailed mapping showed that the dominant rock type which hosts the Quellopata veins is
andesite / andesite breccia of the Oligocene Tacaza Formation. The mapping also showed that
the veins were predominantly northeast-trending, with the exception of the southwestern portion
of the area where they trend more westerly. Rock chip sampling has showed that consistently
high gold values (from 1 to over 10 g/t Au) are present in the Angela vein, in the vicinity of line
10,000N of the local grid. This exposure of higher grade veining occurs in the valley. The better-
grade material does not reach surface over much of the vein’s strike length although quartz
veining can be seen. The veining at surface has opalescent quartz with only rare bladed calcite
pseudomorphs or colloform banding. The likely explanation is that the boiling level was just
below the current topographic surface except in the valley, and that precious metal deposition
stopped there.
Northwest trending, southeast dipping faults are the oldest structures at Quellopata and host the
eight known veins: Angela, Roxana, Martha, Teresa, Lourdes, Shakira, Juliana and Lucy.
The Angela vein outcrops in the central portion of the Quellopata vein system (Figure 6-3). The
vein strikes northeasterly (050º), dips to the southeast (45º to 90º) and outcrops on surface along
a strike length of 700 m (from line 9600N to 10300N). The vein has been intersected in drilling
as far to the northeast as line 12000N (Figure 8-1). The portion of the vein that carries potentially
economical quantities of precious metals so far occurs between 10000N and 11800N, a strike
length of some 2,000 m.
The vein varies in thickness from 0.5 m to as much as 16.0 m, averaging approximately 6.0 m,
and has been tested over a vertical extent of up to 300 m.
Two generations of mineralization have been observed in the Angela vein, an early lead-zinc
event and a later gold-silver event. The early mineralization consists of white quartz veinlets
with sphalerite, galena, pyrite and argentite (minor). These veinlets form a broad, low-grade
envelope (0.2 to 1.0 % Pb + Zn) which surrounds, and overlaps, the Angela vein mineralization.
The second mineralizing event at the Angela vein is the most important economically, and
consists of a white chalcedony vein with associated breccia and stockworks. The chalcedony
contains small amounts (generally < 1 %) of electrum, argentite, pyrargyrite, chalcopyrite, pyrite
and marcasite.
The Angela vein is composed of a gangue of white chalcedony, quartz, calcite (minor), smectite
and illite. Pseudomorphic, quartz-after-calcite textures, and colloform banding, both indicative of
boiling, are quite common in the vein. Metallic minerals, which rarely constitute more than 1 %
of the vein, occur as disseminations and colloform banding, and consist of pyrite, marcasite,
argentite, pyrargyrite, chalcopyrite, sphalerite and electrum.

Figure 8-1: Longitudinal Section with Grade Contours for the Angela Vein

The andesitic wall rock surrounding the Angela vein is altered to a propylitic assemblage
consisting of smectite, chlorite and disseminated pyrite. Quartz stockworks, some containing
significant quantities of base metals, are common in the wall rock adjacent to the vein. Figure 8-
2 shows a typical cross section through the Angela vein wherein the vein changes laterally into
breccia or stockworks.
Figure 8-2: Cross Section 11800N of the Angela Vein (looking east)

9.0 EXPLORATION
The following information on the exploration program on the Inmaculada Property from 2007-
2008 is taken from the Hennessey and Pressacco (2009) and updated below to 2010. Exploration
and drilling programs prior to 2007 are described in Section 5 of this Report and drilling from
2007 onwards is described in detail in Section 10 of this Report.
In 2007, Ventura acquired an option to explore the Property and began the exploration of the
Quellopata veins. The initial work consisted of detailed mapping, in-house topographic
surveying and rock chip sampling. Encouraging gold and silver assay results were received from
the Angela vein at Quellopata, exposed in outcrop, and in the initial drill holes drilled in the
southwestern part of the vein. Ventura then followed the mineralization along strike to the
northeast where the vein disappeared under the ridge. The drilling program identified significant
‘blind’ mineralization in the Angela vein.
9.1 2007 VENTURA EXPLORATION PROGRAM
Ventura, through its Peruvian subsidiary, performed the following exploration work:
• Rehabilitation of the access road to camp and to the Quellopata and Minascucho targets.
• Camp construction at Quellopata.
• Detailed topographic surveys at Quellopata (approximately 6 km2).
• Rock chip sampling at: Quellopata (360 samples) and regionally (133 samples).
• Diamond drilling at Quellopata (15 holes totalling 2,901 m).
9.2 2008 VENTURA EXPLORATION PROGRAM
Ventura, through its Peruvian subsidiary, performed the following exploration work:
• Detailed topographic surveys of the Minascucho and San Salvador targets (approximately
2 km2).
• Detailed geological mapping of Minascucho (1:2,500 scale, approximately 1 km2).
• Detailed geological mapping of San Salvador (1:1,000, approximately 1 km2).
• Rock chip sampling at Minascucho (50 samples) and San Salvador (10 samples).
• Soil sampling at Minascucho (132 samples).
• PIMA sampling at Minascucho and San Salvador (46 samples).
• Magnetic surveying at Minascucho (9.1 line-km) and San Salvador (4.2 line-km).
• IP / resistivity surveying at Minascucho (9.1 line-km) and San Salvador (4.2 line-km).
• Diamond drilling at Quellopata (39 holes totalling 10,252 m).
• Diamond drilling at Minascucho (7 holes totalling 1,460 m).
• Diamond drilling at San Salvador (3 holes totalling 450 m).
Ventura drilled a total of 15,059.2 m during 2007-08, thus completing one of the requirements
for earning its 51 % equity position in the Inmaculada Property.
9.3 2009 VENTURA/IMZ EXPLORATION PROGRAM
The 2009 program explored new targets on the Inmaculada Property with three new gold targets
identified to the south and south-east of Quellopata and the Angela vein: the Anta-Patari zone,

the Cascara-Huallhua zone and the Quellopata Southeast zone. These occurrences are associated
with quartz veins and veinlets hosted in volcanic sequences. Geochemical trends correlate with
detailed geological mapping confirming that the gold is associated with the volcanic sequences.
The program at Anta Patari consisted of detailed geological mapping at 1:1,000 scale of the Anta
Patari (Patari, Anta Norte, Anta Sur and Minor) veins and rock chip sampling from vein outcrops
and trenches, totalling 286 samples.
The Huallhua vein in the Cascara-Huallhua area has been geologically mapped, with an
outcropping strike length of approximately 600 m. Sixteen rock channel samples were taken
from accessible workings on the Huallhua vein and a total of 50 samples were taken from the
Cascara-Huallhua area.
Mapping and sampling of the Quellopata Southeast prospective area commenced in 2009. Four
new quartz veins were identified in this area: Organa, Marina, Verónica and Rebeca vein. The
veins are located approximately 650 m to the southeast of Quellopata’s Martha vein. A total of
11 rock chip samples were taken from the new veins. The Rebeca vein reported low values in
gold and silver.
Table 9.1 gives the average gold and silver grades for the veins as well as the structural details of
each vein on the three prospects.
Table 9.1: Rock Chip Results for the Anta Patari, Cascara-Huallhua and Quellopata
Southeast Prospect Areas
Average Average Values

Width Average Length Width
Zone Vein Strike / Dip (m) (m) Au (g/t) Ag (g/t) (m)
Patari Norte 300/82NE 0.1-0.5 30 2.400 265.0 0.5
Patari 310/50-65NE 0.5-6 600 1.451 178.0 1.0
ANTA-PATARI Anta Norte 330/75NE 0.3-4 280 5.600 453.0 1.2
Menor 340/63E 1-2.5 100 4.881 222.0 1.0
Anta Sur 310/85NE 0.5-3.5 120 8.600 215.0 1.0
Huallhua 270/81N 2.1 30 1.081 14.4 5.0
CASCARA-
Isno 320/75S 13 70 0.005 0.2 4.7
HUALLHUA
330-315/70-
Chaguada 82NE 1.5 450 (interpretation) 0.478 11.2 1.4
Organa 70/76SE 0.7 15 0.005 91.6 0.7
QUELLOPATA Marina 70/75SE 0.6-3.4 110 0.005 36.6 1.2
SE
Verónica 55/85SE 0.2-2.4 490 (interpretation) 0.005 230.0 0.4
Rebeca 40/85SE 6 33 0.071 2.9 1.8
9.3.1 DRILLING
Exploration and infill drilling on the Angela vein continued into 2009 with 45 diamond drill
holes totalling 15,432.05 m drilled, the details of which are discussed in Section 10 of this
Report.

9.4 2010 IMZ EXPLORATION PROGRAM
9.4.1 GEOPHYSICAL SURVEYS
During 2010, magnetic susceptibility, induced polarization (“IP”) and resistivity surveys were
performed at the Inmaculada Property by Arce Geofisicos of Lima, Peru. These surveys were
performed in two stages: January 12-27 and April 22-May 5.
The surveys comprised a 3 km by 2 km, northeasterly-trending, rectangular area which

encompassed the Angela, Shakira, Roxana, Lourdes, Teresa and Martha veins of the Quellopata
area. The coordinates for the area covered by the geophysical survey are:
SW Corner: 8346580N, 688060E

SE Corner: 8345250N, 689645E
NW Corner: 8348920N, 690035E
NE Corner: 8347610N, 691620E
The survey lines were identical to those used for the drilling program, being 100 m apart and
2 km long, beginning at section 10000N and continuing to section 13000N.
In general terms, the magnetic and resistivity surveys failed to reveal any salient features which
could be linked to the known veins. Both surveys were characterized by ‘noisy’, highly variable
results. The magnetic susceptibility values most likely reflected highly variable concentrations of
magnetite in the host andesites. The resistivity values most likely reflected variability in the
degree of fracturing and argillic alteration in the andesites. The IP survey, on the other hand,
revealed a number of features which could be linked directly or indirectly to the veins.
The IP survey used a dipole-dipole array with electrode spacing of 50 m (a=50 m). This allowed
a depth of penetration of approximately 300 m. Two lines were also surveyed at a=100 m, with a
depth of penetration of approximately 600 m.
The IP survey indicated that the veins were surrounded by an extensive zone of high
chargeability caused by disseminated pyrite (Figure 9-1). At depth, the IP indicated a
strengthening and an expansion of the disseminated pyrite (Figure 9-2). Core logging revealed a
general increase in the intensity of propylitization (chlorite-pyrite-calcite) with depth. These
features are thought to be indicative of a buried magmatic-hydrothermal (‘porphyry’) system,
which commonly underlie epithermal deposits.
The shallow IP survey outlined a number of linear, northeasterly-trending, chargeability

anomalies (Figure 9-1). These features are consistent with galena-sphalerite-pyrite veins and
breccias which formed early (pre-epithermal veins) and occur in the immediate wall rocks of
both the Angela and Martha veins. These linear anomalies thus provide an indirect method of
targeting the Angela and other epithermal veins at Inmaculada. The deep I.P. survey (Figure 9-2)
shows that the early base metal veins do not persist at depth.

Figure 9-1: Inmaculada Shallow IP

Figure 9-2: Inmaculada Deep IP

9.4.2 PIMA SURVEY
A number of pieces of mineralized core were sent to Genex Geology and Exploration of Lima,
Peru for analysis by a portable infrared mineralogical analyzer (“PIMA”). This study was meant
to determine the clay mineralogy associated with the mineralization and thus a crude
measurement of the temperature of formation. A total of 96 samples were sent for analysis.
The results indicated that the dominant clay mineral associated with the mineralization is
montmorillonite (smectite-illite mixed-layer clays), followed by illite, sericite and rare chlorite.
The clay minerals are associated with a gangue largely composed of quartz and calcite. These
results indicate a temperature range (150°C-240°C) which is typical for epithermal deposits.
9.4.3 PETROGRAPHIC SURVEY
Nine samples of mineralized vein material from the Angela vein were sent to Geoexploracion
Ingenieros Perú in Lima, Perú for thin section studies of silicate minerals. One sample was sent
for polished section studies of metallic minerals.
The dominant silicate (gangue) minerals identified in this survey were: quartz, chalcedony, early
calcite, late calcite, sericite and undifferentiated clay minerals. The study concluded that a large
proportion of the quartz / chalcedony exhibits pseudomorphic textures after (early) calcite,
indicative of a boiling system.
The single polished section was taken from a core sample of andesitic porphyry at a depth of
approximately 550 m below the surface. The study indicated only the presence of minute
quantities of pyrite and pyrrhotite.
The petrographic study is on-going and additional samples of mineralized core will be analyzed
for metallic minerals.
9.4.4 DRILLING
Exploration and infill drilling on the Angela vein continued into 2010 with 40 diamond drill
holes totalling 12,885.25 m drilled to May 15, 2010, the details of which are discussed in Section
10 of this Report.

10.0 DRILLING
The following information on the drill program on the Inmaculada Property from 2007-2008 is
taken from the Hennessey and Pressacco (2009) and updated below to 2010.
From 2007 to May 15, 2010, 149 diamond drill holes totalling 43,376.40 m have been drilled on
the Property (Figure 10-1). Table 10.1 gives the details on the program for each year to May
2010.
Table 10.1: Drill Holes on the Inmaculada Property, 2007 – May 2010
Drill Hole
Year No. of DDH Metres Numbers Target Area Company
2007 15 2,901.10 INMA-01 to -15 Quellopata Ventura
2008 39 10,247.85 INMA-16 to -54 Quellopata Ventura
2008 7 1,460.25 MIN-01 to -07 Minascucho Ventura
2008 3 450.00 SS-01 to -03 San Salvador Ventura
2009 45 15,431.95 INMA-55 to -99 Quellopata Ventura-IMZ
2010* 40 12,885.25 INMA-100 to -139 Quellopata IMZ
TOTAL 149 43,376.40
Note: * The 2010 drill hole total is reported as of May 15, 2010, the cut-off date for the resource estimate.
10.1 VENTURA DRILL PROGRAM
The diamond drilling on the Angela vein in the Quellopata area was performed by Bradley-MDH
(“Bradley”) of Lima, Perú. All holes were drilled using HQ-diameter rods up to a depth of 250 m
and NQ-diameter rods to the end of hole. A total of 13,153 m in 54 holes were drilled by
Ventura during 2007-2008.
The azimuth and inclination of the drill stem were measured using topographic surveying
instruments. Dip and azimuth measurements were taken every 100 m down the hole with a
Reflex ‘EZ-Shot’ instrument which electronically records the azimuth, dip and local magnetic
field.
10.1.1 2007 VENTURA DRILL PROGRAM
The 2007 drilling campaign on the Inmaculada Property focussed on the initial testing of the
Angela, Shakira, Martha, Teresa and Lourdes veins at depth at Quellopata, totalling 2,901.10 m
in 15 holes. The best intersections were obtained from the Angela vein along sections 10100N
and 10200N of the local grid. A list of drill holes and a summary of significant intercepts for the
2007 drill program is reported in Hennessey and Pressacco (2009).

Figure 10-1: Drilling at the Quellopata Including the Angela Vein, Inmaculada Property, 2007-2010

10.1.2 2008 VENTURA DRILL PROGRAM
Based on the 2007 drilling results, a second drill program commenced in 2008 during which a
total of 39 diamond drill holes and 10,247.85 m was drilled at the Angela vein using a nominal
separation between holes of 100 m along strike and between 50 to 100 m down dip. The Angela
vein was tested along a strike length of 1,000 m (between lines 10000N and 11000N) as well as
across a vertical distance of approximately 200 m. Drilling extended the Angela vein to a strike
length of more than 900 m and a depth of 300 m below surface and continues to show continuity
of thickness and grade throughout the vein (Ventura News Release December 3, 2008).
The vein remained open at depth and down-plunge to the northeast. A list of drill holes and a
summary of significant intercepts for the 2008 drill program on the Angela vein is reported in
Hennessey and Pressacco (2009).
The San Salvador target is located approximately 7 km northwest of the Angela vein. Three
diamond drill holes, totalling 450 m, were drilled below an outcropping, mineralized breccia at
San Salvador which represents a disseminated, high-sulphidation gold target. The drill results
indicated the presence of gold mineralization, requiring additional evaluation and drilling to
better understand the underlying structure (Ventura News Release December 3, 2008).
Highlights of the drilling include the following (true widths unknown):
• SS-01: From 107.4 to 121.5 m; 14 m at 0.4 g/t Au and 26 g/t Ag

• SS-03: From 20.0 to 38.0 m; 18 m at 0.7 g/t Au and 20 g/t Ag
The Minascucho breccia, located 5 km north of the Angela vein, was drilled in 2008 with 5
diamond drill holes completed in the breccia and two additional holes drilled on the Central zone
(another exploration target adjacent to Minascucho), totalling 1,460 m. The Central zone drill
holes returned no significant values. Positive results were reported from the Minascucho breccia
(Ventura News Release September 8, 2008) with significant intersections as follows:
• MIN-01: From 70.65 to 107.05 m; 32 m at 2.0 g/t Au and 8 g/t Ag

10.2 2009 VENTURA - IMZ DRILL PROGRAM
In 2009, 45 diamond (core) drill holes totalling 15,431.95 m were drilled on the Property (Table
10.2). The drill program commenced on June 3, 2009 and was completed by December 15, 2009.
Holes were drilled by Bradley using a modified Hydracore LD-250 portable drilling machine
with HQ-diameter rods to 250 m then NQ-diameter rods to the bottom of the hole and two LF70
drilling machine using HQ-diameter rods.

Table 10.2: Ventura-IMZ 2009 Drill Program
Length
Drill Hole North East Elevation (m) Azimuth Dip
INMA-55 8346401 689134 4628 421.20 309.20 -59.04
INMA-56 8346440 689242 4636 401.30 311.40 -55.09
INMA-57 8346456 689379 4631 442.20 309.40 -45.00
INMA-58 8346551 689421 4638 422.00 310.00 -59.42
INMA-59 8346567 689557 4638 473.80 310.00 -60.00
INMA-60 8346645 689619 4648 525.20 310.00 55.00
INMA-61 8346723 689681 4656 484.10 310.00 -55.00
INMA-62 8346640 689316 4653 422.40 310.00 -66.00
INMA-63 8346440 689242 4636 450.10 310.00 -73.00
INMA-64 8346567 689557 4638 457.45 310.00 -51.00
INMA-65 8346768 689475 4656 361.35 310.00 -71.00
INMA-66 8346455 689379 4631 506.90 310.00 -60.00
INMA-67 8346243 688624 4562 104.70 312.60 -48.83
INMA-68 8346644 689620 4648 584.20 310.00 -64.00
INMA-69 8346243 688225 4562 150.60 313.30 -75.26
INMA-70 8346825 689559 4672 370.30 310.00 -65.00
INMA-71 8346181 688707 4566 223.70 308.10 -51.99
INMA-72 8346181 688708 4566 258.45 309.60 -64.05
INMA-73 8346768 689784 4652 606.50 310.00 -55.00
INMA-74 8346723 689681 4656 602.00 310.00 -67.00
INMA-75 8346213 688737 4576 187.30 308.20 -53.60
INMA-76 8346165 688794 4575 265.90 307.20 -55.02
INMA-77 8346888 689795 4666 503.00 310.20 -59.42
INMA-78 8346222 688806 4588 230.90 312.50 -46.12
INMA-79 8346768 689784 4652 604.70 310.00 -63.00
INMA-80 8346221 688806 4588 250.50 312.90 -59.71
INMA-81 8346969 689854 4672 540.50 310.00 -59.00
INMA-82 8346307 688704 4592 120.00 309.90 -44.38
INMA-83 8346895 689632 4672 436.60 310.00 -67.00
INMA-84 8346306 688705 4592 130.00 311.70 -69.63
INMA-85 8346309 688933 4616 280.10 310.00 -56.00
INMA-86 8347010 689804 4672 450.00 310.00 -56.00
INMA-87 8346974 689693 4677 400.60 310.00 -60.00
INMA-88 8346387 688918 4631 220.00 310.00 -45.00
INMA-89 8346387 688919 4631 250.00 310.00 -62.00
INMA-90 8346991 689982 4667 550.00 310.00 -54.00
INMA-91 8347082 689873 4684 412.40 310.00 -55.00
INMA-92 8346386 688919 4631 280.20 310.00 -72.00
INMA-93 8346400 688748 4626 89.80 310.00 -45.00
INMA-94 8347150 689943 4683 435.20 310.00 -55.00
INMA-95 8346400 688749 4626 110.00 310.00 -75.00
INMA-96 8346363 688713 4613 76.80 310.00 -45.00
INMA-97 8346463 688826 4648 149.20 310.00 -72.00
INMA-98 8346431 688788 4637 90.30 310.00 -45.00
INMA-99 8346462 688827 4648 99.50 310.00 -45.00
TOTAL 15,431.95
The program focussed on the Angela vein at Quellopata in order to expand the known mineral
resources, extend the vein laterally to the northeast and to further define some of the possible
feeder zones that are still open at depth (IMZ News Release January 19, 2010). Infill drilling was

undertaken between sections 10000N and 10400N and exploration drilling between sections
10500N and 11600N. As a result of the program, the Angela vein was extended to a 1,500 km
strike with an average width of 8.3 m. Table 10.3 lists significant intercepts of the 2009 drill
program.
An additional 2,000 m of the 2009 drill program tested the down-dip extent of mineralization at
the Martha vein and the untested Anta and Patari vein systems. The Martha vein was first
intersected during the 2007 drill program (Ventura News Release July 2, 2009).
Table 10.3: Significant Intercepts for the 2009 Drill Programs
From Intersection True Width Gold Silver

DDH No. Local Grid (m) To (m) (m) (m)* (g/t) (g/t) Vein
168.90 170.65 1.75 0.90 3.04 79 Lourdes
INMA-55 10500N 176.00 180.10 4.10 2.50 5.85 76 Lourdes
334.55 335.60 1.05 1.00 2.80 232 Angela
338.55 341.50 2.95 2.80 2.40 142 Angela
INMA-56 10600N 353.85 357.05 3.20 3.00 4.00 230 Angela
INMA-57 10700N 421.30 423.30 2.00 1.40 3.60 124 Angela
INMA-58 10800N 379.33 382.80 3.47 3.30 2.48 165 Angela
INMA-59 10900N 453.88 462.75 8.87 7.10 1.30 158 Angela
INMA-60 11000N 440.25 443.97 3.72 3.20 2.00 85 Angela
INMA-61 413.00 424.85 11.85 11.00 4.08 324 Angela
including 11100N 416.30 421.10 4.80 4.50 6.70 554 Angela
INMA-62 308.53 315.15 6.62 6.40 4.30 242 Angela
INMA-64 10900N 395.60 399.30 3.70 3.60 2.78 240 Angela
INMA-65 11000N 300.35 304.95 4.60 3.50 37.06 270 Angela
INMA-66 10700N 425.50 426.85 1.35 1.30 2.33 121 Angela
INMA-67 10050N 41.10 44.10 3.00 2.20 10.20 147 Angela
INMA-67 10050N 70.85 78.88 8.03 7.95 1.21 36 Roxana
300.28 301.75 1.47 1.40 7.04 926 Unnamed
INMA-68 11000N 473.95 477.50 3.55 3.30 5.87 437 Angela
INMA-69 10050N 97.00 98.65 1.65 1.30 3.36 142 Angela
INMA-70 11100N 331.90 334.50 2.60 2.50 2.01 122 Angela
INMA-71 10050N 170.00 172.30 2.30 2.00 0.90 40 Angela
INMA-72 10050N 189.00 192.85 3.85 3.30 4.48 192 Angela
INMA-73 11200N 470.45 473.55 3.10 2.90 2.29 306 Angela
INMA-75 10100N 157.65 164.30 6.65 6.20 22.39 156 Angela
INMA-76 10100N 88.80 91.33 2.53 1.85 2.70 99 Unnamed
361.75 364.40 2.65 2.40 4.96 340 Angela
413.15 414.50 1.35 1.00 6.91 145 Angela
INMA-77 11300N
419.00 420.40 1.40 1.00 7.04 563 Angela
438.80 440.05 1.25 unknown 57.96 926 Unnamed
187.50 192.98 5.48 5.30 2.00 76 Angela
192.23 192.98 0.75 0.60 29.38 495 Angela
INMA-78 10150N 203.65 204.40 0.75 0.60 233.65 1099 Unnamed
299.16 300.31 1.15 unknown 1.32 77 Unnamed
INMA-79 11200N 310.77 311.60 0.83 unknown 1.12 80 Unnamed
333.85 334.55 0.70 unknown 3.13 253 Unnamed

370.05 370.39 0.34 unknown 1.36 82 Unnamed
559.90 562.80 2.90 2.50 3.16 8 Angela
INMA-81 11400N 382.90 384.07 1.17 1.00 1.55 472 Angela
INMA-82 10150N 61.05 62.76 1.71 1.50 2.51 30 Angela
INMA-83 11200N 330.10 340.70 10.60 8.30 8.23 419 Angela
INMA-84 10150N 88.00 91.30 3.30 2.30 5.13 78 Angela
INMA-85 236.78 237.40 0.62 0.45 2.15 39 Unnamed
INMA-85 245.15 253.55 8.40 7.40 2.24 108 Angela
INMA-86 317.00 322.32 5.32 5.00 3.29 129 Angela
INMA-87 11300N 271.45 276.10 4.65 4.00 3.36 116 Angela
172.10 173.00 0.90 0.80 2.19 43 Angela
INMA-88 10350N 213.75 215.00 1.25 0.95 2.06 23 Unnamed
INMA-89 10350N 191.00 194.90 3.90 3.40 3.68 107 Angela
INMA-90 11500N 465.60 474.30 8.70 7.00 9.19 208 Angela
INMA-91 11500N 298.25 303.75 5.50 4.60 5.37 178 Angela
INMA-92 232.50 244.50 12.00 7.20 5.14 75 Angela
INMA-93 36.00 47.95 11.95 8.80 3.47 83 Angela
INMA-94 11600N 284.00 285.35 1.35 1.10 19.82 263 Angela
INMA-95 58.10 72.40 14.30 8.80 4.50 96 Angela
33.60 35.20 1.60 1.30 3.64 31 Angela
INMA-97 10350N 102.05 103.00 0.95 0.60 2.91 39 Angela
INMA-98 10300N 52.00 53.40 1.40 1.30 6.17 785 Angela
INMA-99 10350N 69.15 71.75 2.60 2.40 1.84 104 Angela
* True widths were calculated from the geometric relations between the drill hole inclination angle and the dip of
the vein at that location.
10.3 2010 IMZ DRILL PROGRAM
Forty diamond (core) drill holes totalling 12,885.25 m have been drilled on the Property from
January 15, 2010 to May 15, 2010, the cut-off date for the updated resource estimate (Table
10.4). Drill holes drilled after this date are not discussed in this Report.
The holes were drilled by Bradley using a modified Hydracore LD-250 portable drilling machine
with HQ-diameter rods to 250 m then NQ-diameter rods to the bottom of the hole and two LF70
drilling machine using HQ-diameter rods.
The drilling extended the Angela vein mineralization for an additional 500 m of strike length to
more than 2,000 m with a vertical extent of up to 300 m and the vein system averaging 12.5 m in
width. Mineralization remains open along strike to the northeast (IMZ News Release, May 4,
2010). Table 10.5 lists significant intercepts of the 2010 drill program.

Table 10.4: IMZ 2010 Drill Program to May 15, 2010
Length
Drill Hole North East Elevation (m) Azimuth Dip
INMA-100 8346895 689632 4672 379.90 -56.48 309.60
INMA-101 8346991 689982 4666 603.20 -56.53 311.10
INMA-102 8346327 688835 4614 179.90 -43.56 307.60
INMA-103 8346326 688836 4614 190.00 -51.20 310.30
INMA-104 8346974 689692 4677 324.10 -48.22 309.50
INMA-105 8346326 688836 4614 210.00 -59.45 309.40
INMA-106 8346326 688836 4614 230.00 -64.35 311.00
INMA-107 8346888 689795 4665 577.00 -66.09 312.30
INMA-108 8346326 688836 4614 250.00 -69.03 309.40
INMA-109 8346992 689982 4666 546.00 -47.30 312.30
INMA-110 8346306 688705 4592 130.30 -82.34 311.60
INMA-111 8346307 688705 4592 100.00 -58.42 308.50
INMA-112 8346222 688806 4589 220.10 -50.53 308.30
INMA-113 8347010 689804 4672 360.00 -44.26 308.50
INMA-114 8347069 690045 4673 480.30 -51.18 311.60
INMA-115 8346272 688665 4578 121.00 -75.17 311.50
INMA-116 8347081 689872 4683 424.10 -42.45 312.00
INMA-117 8346243 688625 4562 101.30 -58.40 313.30
INMA-118 8347068 690046 4673 629.20 -61,31 311.30
INMA-119 8346181 688708 4566 240.05 -72.56 311.20
INMA-120 8346969 689855 4672 591.50 -67.34 308.40
INMA-121 8346255 688842 4599 220.00 -51.02 310.30
INMA-122 8347141 690115 4680 552.40 -54.54 309.30
INMA-123 8346302 688786 4603 160.20 -54.18 311.10
INMA-124 8346339 688744 4610 110.10 -61.38 312.50
INMA-125 8347200 690200 4680 530.80 -61.46 311.10
INMA-126 8346310 688933 4616 268.00 -52.25 311.50
INMA-127 8346991 689982 4666 146.95 -62.14 313.50
INMA-128 8346310 688933 4616 285.10 -60.52 309.40
INMA-129 8347141 690114 4680 481.50 -46.29 311.50
INMA-130 8347300 690235 4683 550.70 -57.46 312.20
INMA-131 8346361 688872 4622 190.00 -55.57 312.40
INMA-132 8346397 688828 4631 140.00 -55.14 309.00
INMA-133 8346430 688788 4637 92.40 -64.51 311.50
INMA-134 8347200 690200 4680 524.25 -49.38 310.80
INMA-135 8346366 688787 4621 133.90 -59.30 312.30
INMA-136 8346325 688836 4614 250.30 -76.23 307.10
INMA-137 8347143 690118 4680 567.60 -57.07 313.10
INMA-138 8346388 688919 4631 220.00 -55.07 310.70
INMA-139 8347199 690200 4680 573.10 -68.20 310.30
TOTAL 12,885.25

Table 10.5: Significant Intercepts for the 2010 Drill Programs

INMA-100 11200N 271.10 276.97 5.87 4.60 12.53 386 Angela
INMA-101 11500N 536.90 542.90 6.00 3.50 3.32 66 Angela
INMA-102 10250N 149.77 158.65 8.88 8.20 1.84 39 Angela
INMA-103 10250N 156.00 166.93 10.93 10.00 3.97 87 Angela
INMA-104 242.00 250.20 8.20 7.60 5.02 136 Angela
INMA-105 170.20 180.00 9.80 8.00 4.20 143 Angela
INMA-106 182.15 192.18 10.03 8.20 4.58 193 Angela
170.20 180.00 9.80 8.00 4.20 143 Angela
399.90 402.50 2.60 unknown 8.70 372
INMA-105 11300N
430.70 432.00 1.30 unknown 3.20 225
504.30 506.10 1.80 1.30 1.40 58
INMA-108 10250N 195.60 206.95 11.35 8.10 2.83 114 Angela
INMA-109 394.80 396.42 1.62 unknown 1.97 222 Unnamed
421.40 434.45 13.05 9.00 4.17 165 Angela
INMA-110 10150N 114.20 116.10 1.90 1.20 3.21 78 Angela
69.90 74.25 4.35 3.00 7.60 113 Angela
INMA-111
10150N 81.58 82.50 0.92 0.70 14.91 179 Roxana
INMA-112 10150N 196.62 197.22 0.60 0.50 7.50 97 Angela
INMA-113 11400N 276.90 278.20 1.30 1.10 2.32 45 Angela
380.70 384.30 3.60 unknown 7.40 602 Unnamed
INMA-114
11600N 447.50 448.50 1.00 0.70 0.79 58 Angela
INMA-115 10100N 91.88 97.25 5.37 3.50 4.20 142 Angela
INMA-116 11500N 285.80 286.25 0.45 0.45 2.35 39 Angela
INMA-117 52.35 70.60 18.25 10.00 4.07 145 Angela
including
10050N 52.35 61.15 8.80 4.80 6.98 158 Angela
81.10 82.60 1.48 1.25 1.20 69 Roxana
338.70 341.20 2.50 unknown 3.42 242 Unnamed
377.67 378.09 0.42 unknown 3.12 71 Unnamed
INMA-118 11600N
413.85 415.47 1.62 unknown 2.73 253 Unnamed
542.10 543.20 1.10 0.90 1.71 40 Angela
INMA-119 10050N 205.40 209.30 3.90 3.05 5.13 68 Roxana
INMA-121 196.60 214.60 18.00 15.00 2.06 72 Angela
407.49 410.12 2.63 unknown 14.51 562 Unnamed
INMA-122 11700N
425.42 440.70 15.28 12.50 6.83 251 Angela

INMA-123 10200N 139.90 144.80 4.90 4.00 5.44 122 Angela
INMA-124 10200N 84.60 93.50 8.90 7.50 3.40 74 Angela
INMA-125 11800N 480.77 485.90 5.13 3.50 35.09 1364 Angela
INMA-126 230.00 246.10 16.10 15.00 1.78 58 Angela
INMA-128 10300N 268.50 272.40 3.90 3.40 2.09 69 Angela
INMA-129 361.80 371.50 9.70 7.50 12.72 274 Angela
INMA-130 11900N 462.90 463.25 0.35 0.30 5.69 752 Unnamed
INMA-131 163.30 179.45 16.15 15.00 2.81 73 Angela
including
10300N 163.30 165.80 2.50 2.30 9.20 199 Angela
177.45 179.45 2.00 1.85 5.48 121 Unnamed
INMA-132 10300N 117.90 124.50 6.60 5.00 19.92 285 Angela
INMA-133 10300N 68.60 75.40 6.80 5.00 4.90 177 Angela
INMA-134 11800N 412.50 414.40 1.90 1.60 7.61 307 Angela
INMA-135 10250N 104.33 107.82 3.49 3.00 3.47 96 Angela
INMA-136 10250N 239.50 240.42 0.92 0.60 8.25 74 Angela
451.56 451.81 0.25 0.20 12.38 9,867 Unnamed
INMA-137 11700N 457.20 460.75 3.55 2.80 8.31 277 Unnamed
465.45 471.70 6.25 5.00 7.15 192 Angela
177.50 178.70 1.20 1.10 4.03 65 Unnamed
INMA-138 10350N
195.50 198.30 2.80 2.20 2.68 87 Angela
544.15 547.70 3.55 2.10 17.36 623 Angela
INMA-139 11800N
552.00 553.80 1.80 1.10 6.26 468 Angela
* True widths were calculated from the geometric relations between the drill hole inclination angle and the dip of
the vein at that location.

10.4 DRILLING AND CORE RECOVERY
Access roads and platforms were first constructed and the rig was moved to the drill site by
truck. The azimuth and inclination of the drill stem were measured using topographic surveying
instruments. Dip and azimuth measurements were taken every 100 m down the hole with a
Reflex “EZ-Shot” instrument which electronically records the azimuth, dip and local magnetic
field. Drilling was performed using bentonite mud, to enhance core recovery, which was washed
from the core in the boxing process. The recovered core was placed in 1 m long wooden core
boxes with depth markers (blocks) inserted after every drill “run” (typically 3 m unless the core
barrel plugged necessitating early recovery). Wooden lids were placed on the core boxes and
they were sealed with heavy rubber bands.
Most of the drill core drilled on the Angela vein produced good recoveries. Occasionally, the
core in the vuggy veins would break up into chunks of rock but recovery still remained
reasonably good. Core recovery in the andesitic volcanics was generally very good, although it
may range from good to broken when coring within the vein. The Micon report concluded that
even when broken, the total recovery of core was reasonably good (Hennessey and Pressacco
2009). Core logging procedures are discussed in detail in Hennessey and Pressacco (2009) and
briefly described in Section 11 of this Report.

11.0 SAMPLING METHOD AND APPROACH
11.1 GENERAL
Sampling of the potentially economic portion of the gold-silver mineralization from the Angela
vein has essentially been limited to the collection of a limited number of chip-channel samples as
well as the samples of diamond drill core. Most of the surface sampling on the vein was
performed during 2007 on the weakly mineralized portion along the ridge. These chip samples
were submitted for assay using the same general protocols as that employed for core samples.
However, they have not been used to estimate the mineral resources presented in this report.
All samples were analyzed for gold and silver by SGS del Perú S.A.C. (“SGS”) in Lima. Multi-
element inductively coupled plasma (“ICP”) analyses were also done for the majority of
samples.
11.2 DIAMOND DRILL CORE LOGGING AND SAMPLING
During logging, detailed descriptions of the drill core were made by experienced and qualified
geologists under the employ of Minera Quellopata. Drill log and sampling data were recorded on
paper and transferred onto laptop computers at the project site offices. The core sampling
protocol is described below.
Core boxes were laid out on benches in the core shed and geologically logged. Once logging was
completed and the veining, alteration and mineralization located and described, the intervals to
be sampled were determined by a geologist and the core was marked up for sampling. All vein
material and the surrounding andesitic volcanics with even weak stringer mineralization were
selected for sampling. Sampled intervals were a minimum of 0.25 m long and rarely more than
1.0 m in length. The sampled intervals respected lithological contacts between dominantly vein
and stringer mineralization, and between the early lead-zinc-silver-rich veining and the later
gold-silver-rich veining. Long, continuous sections of barren, unaltered rock were generally left
unsampled.
The core intervals to be sampled were marked in coloured wax crayon, such as a lumber pencil,
and additional wooden blocks were inserted in the core box to mark the start of a sampled
interval. The blocks were painted white and the sample tag number was written in marker on the
block.
The from-to depths of the sampling intervals were recorded in the logs, along with sample tag
numbers and geological descriptions. Separate columns in the log allow for codes describing
rock and/or alteration type and comments about the alteration and vein styles, intensity of
alteration, and visual estimates of accessory mineral percentages.
Once core logging and sample layout were complete, the core boxes proceed to the sampling
stage.

11.3 CORE SAMPLING, SECURITY AND CHAIN OF CUSTODY
Following the logging and core marking procedures described above, the core was sampled by
experienced samplers who have worked for Minera Quellopata or related companies on other
projects. Quality control was maintained through regular verification by on-site geologists.
Core was broken, as necessary, into manageable lengths. The pieces were removed from the box
without disturbing the sample interval markers and cut in half, lengthwise, with a diamond saw.
One half of the core was placed in a plastic sample bag and the other half was carefully
repositioned in the core box.
The tops of the sample bags were folded over several times and stapled shut with the sample tag
visible in the fold for easy identification of the sample once shipped to the laboratory. The
sample tag number was also written on the bag in black marker. The individual sample bags
were placed in heavy fibreglass rice bags and sealed with heavy plastic tape.
The sealed sample bags were shipped by company truck to the field office in Chalhuanca where
they were sent onward to Lima, either by commercial bus or by company truck. The samples
were shipped to IMZ’s Lima office where the quality assurance/quality control (“QA/QC”)
samples were inserted prior to shipment to SGS. From the IMZ’s Lima office the samples were
transported to SGS by SGS laboratory personnel.
Once sampling was complete, the ends of the core boxes were painted white and information
regarding drill hole number, box number and from and to intervals was recorded on the box
ends. They were then stored in the core shed on-site at the Inmaculada Property.
The sample submission forms for the assay laboratory were prepared in Lima by the geologist
responsible for insertion of the QA/QC samples.
11.4 SUMMARY AND CONCLUSIONS
Good logging and sampling protocols and procedures have been used by IMZ and its
predecessors at the Inmaculada project. They conform to what is generally regarded as best
practice, and are well suited to the deposit’s style of mineralization. These protocols and
procedures are appropriate for the collection of data suitable for the calculation of a mineral
resource estimate that complies with NI 43-101 and with CIM Best Practices Guidelines.

12.0 SAMPLE PREPARATION, ANALYSES AND SECURITY
12.1 SAMPLE PREPARATION
All samples received by SGS are processed through a sample tracking system that is an integral
part of that company’s Laboratory Information Management System (“LIMS”). This system
utilizes bar coding and scanning technology that provides complete chain-of-custody records for
every stage in the sample preparation and analytical process and limits the potential for sample
switches and transcription errors.
After receipt and being logged into the LIMS system, samples were dried in a large oven at
105 ºC (70 ºC if the sample is to be sent for mercury analysis). Samples were then crushed to
95 % passing -10 mesh (1.7 mm). A 250 g subsample of the crushed material was then
pulverized to 95 % passing -140 mesh (106 microns). The sample preparation equipment was
cleaned with barren wash material between sample preparation batches and, where necessary,
between highly mineralized samples. Sample preparation stations are also equipped with dust
extraction systems to reduce the risk of sample contamination.
Pulps and coarse rejects from the prepared samples were returned to IMZ and stored in a secure
warehouse in Lima for future reference.
12.2 ANALYSES
Prepared sample pulps were analyzed for gold by fire assay of a 30 gram aliquot with atomic
absorption spectrophotometry (“AAS”) finish (SGS code FAA313). Samples that assayed in
excess of 5 g/t Au were re-analyzed with a gravimetric finish to ensure a more accurate result at
the higher grades (SGS code FAG303).
A 35-element ICP package was also utilized for base metal and silver determinations. This
package uses an aqua regia acid digestion with atomic emission spectroscopy (“AES”) finish
(SGS code ICP12B). Over limit samples returning more than 100 g/t Ag were re-run using a
multi-acid digestion method with AAS determination of silver, a method optimized for higher
grades (SGS code AAS41B). SGS reports that the multi-acid digestion used for AAS41B is a
“combination of HCl (hydrochloric acid), HNO3 (nitric acid), HF (hydrofluoric acid) and HClO4
(perchloric acid)” often referred to as a ‘near- total digestion’.
12.3 SECURITY
Other than the sample cutting and bagging described in the previous section, no aspect of the
sample preparation procedure was conducted by an employee, officer, director or associate of
IMZ.
Once sealed, the large fibreglass rice bags used for shipping the samples remained in the locked
core shed until they were shipped out from the camp on the Property
SGS facilities in Lima are secure and guarded by an armed guard. Access is by pass or pre-
arranged appointment only.

As discussed in greater detail in the following section, independent confirmation samples
selected from core boxes by P&E, and analyzed at a different laboratory, strongly support the
view that secure procedures are in place for the collection, transportation and analysis of samples
from the Inmaculada site.

13.0 DATA VERIFICATION
13.1 P&E SITE VISIT AND INDEPENDENT SAMPLING
The Inmaculada Property was visited by Mr. David Burga, P. Geo., on June 10 and June 11,
2010. A tour of the drill sites was undertaken and core handling, core logging and sample
protocols were observed. Coordinates for selected drill hole collars were collected by GPS.
Ten assay verification samples were taken from nine drill holes during the June 2010 site visit.
Sample intervals were taken from a variety of low, medium and high grade mineralized material.
The chosen intervals were then sampled by taking the remaining half-split core. The samples
were documented, bagged and sealed with packing tape and taken by Mr. Burga to ALS Chemex
in Lima, Peru for analysis.
At no time, prior to the time of sampling, were any employees or associates of IMZ advised as to
the location or identification of any of the sample intervals to be collected nor did they, at any
time, have access to the sampled material.
A comparison of the P&E independent sample verification results versus the original assay
results for gold and silver can be seen in Figures 13-1 and Figure 13-2. The P&E results for gold
and silver were satisfactory and clearly demonstrate that the tenor of the mineralization is similar
to what was originally reported.
Figure 13-1: P&E Site Visit Verification Sample Results for Gold, June 2010

Figure 13-2: P&E Site Visit Verification Sample Results for Silver, June 2010
P&E Site Visit Verification Sample Result for Ag: June 2010
600
500
400
300 Original Ag Values

QA/QC Ag Values
200
100
0
1
0
14
14
14
14
14
14
14
14
14
15
91
91
91
91
91
91
91
91
91
91
2
2
E5
E5
E5
E5
E5
E5
E5
E5
E5
P&E Sample Number E5
13.2 VERIFICATION OF THE ELECTRONIC DATABASE
As part of the 2010 resource update, R. Mohan Srivastava, P. Geo. of FSS Canada Consultants
Inc. (“FSS”) spot-checked the electronic assay data base against original assay certificates, and
identified several types of errors, including assay values entered in the wrong interval, assay
values not entered into the electronic data base, and typographical errors. Though there were few
errors, some were large in magnitude and their impact on resource estimates was difficult to
quantify. Mr. Srivastava therefore recompiled the entire drill hole assay data base for the
Inmaculada Property, using original assay certificates and the geological logging sheets that
provided the sample numbers that were used for each sample interval.
This recompilation has ensured that the assay database used for the September 2010 mineral
resource update corresponds exactly to the data provided by SGS. The only drill holes for which
this verification was not possible were the earliest diamond drill holes, the QU series, which
were drilled by Hochschild. Of these, the two which affect on the resource estimates are QU-07
and QU-25 (Figure 8-1). QU-07 intersects the Angela vein, and contributes sample intervals
whose gold and silver assays are used for grade estimation. QU-25 does not intersect the Angela
vein, but its lack of strong mineralization forces closure of the Angela vein wireframe nearby; in
this sense, QU-25 does affect the volume (and tonnage) estimates, but not the grade estimates.
For these two drill holes, the assay data in the electronic data base was checked against
tabulations of assay values, and average values across the Angela vein, that appear in earlier
project reports.

13.3 CHECKS OF THE RELIABILITY OF ASSAY DATA
13.3.1 INTERNAL QA/QC CHECKS DONE BY SGS
Since 2007, when the SGS laboratory in Lima began analyzing samples from the Inmaculada
Property, it has processed 151 batches of Inmaculada samples. With each batch, the SGS
laboratory uses three types of samples to monitor the quality of their analytical results: standards,
blanks and duplicates.
13.3.1.1 INTERNAL STANDARDS
The standards allow the laboratory to monitor the accuracy of their analyses; SGS deems a batch
to be acceptable if the assay of a standard comes within ± 10 % of the established reference
value.
The SGS Lima laboratory has used 24 different gold standards, a combination of sulphide and
oxide material, ranging in grade from roughly 0.1 g/t to 15 g/t. In all 151 batches, the gold
standards always assayed at within ± 10 % of the established reference value.
The SGS laboratory used 8 different silver standards, ranging in grade from roughly 0.1 g/t to 30
g/t. The high end of this range reaches only the 25th percentile of the distribution of the silver
assays in the mineralized vein system (refer to Figure 16-6); for the upper 75 % of the silver
distribution, the internal silver standards used by SGS do not provide good coverage. The
external standards, discussed below, are the better source of information on the accuracy of the
higher-grade silver assays.
For most of the 151 batches, at least one of the silver standards fails to meet the ± 10 % criterion.
The majority of these failures occur with the very low silver standard, the 0.3 g/t standard that is
off by more than ± 10 % whenever it reports as 0.2 g/t or 0.4 g/t. Some of the failures are also on
one of the higher-grade silver standards, a standard with a reference value of 13.85 g/t that
sometimes assayed as low as 11.3 g/t (18 % low), and sometimes assayed as high as 17.0 g/t
(23 % too high).
Even though the internal silver standards are more variable than the SGS protocols stipulate,
they cover only the low end of the silver grade distribution, where the relative grade variability
tends to be higher. The external silver standards discussed below show that the accuracy of the
higher-grade silver assays is acceptable for resource estimation, especially since silver accounts
for only approximately one third of the contained metal value.
13.3.1.2 INTERNAL BLANKS
The blank samples allow the laboratory to monitor for cross-contamination between samples;
there is no internal protocol for when a blank assay is acceptable, but low values at 2-3 times the
detection limit are usually not deemed problematic.
In all 151 batches, none of the internal SGS blanks assayed at more than two times the detection
limit. More than 99 % of the blanks assayed at less than the detection limit.

13.3.1.3 INTERNAL DUPLICATES
The duplicates allow the laboratory to monitor the precision of their analyses. As with the
blanks, the SGS laboratory does not have an explicit protocol for how close the duplicate
analyses should be, but batches are often deemed acceptable if most of the duplicates come
within ± 10 % of the average of the first and second assay.
In all 151 batches, the vast majority of the internal duplicate assays of silver and gold are well
within ± 10 % of the average of the two assays. The few instances where duplicates differ by
more than ± 10 % from their average are situations where the two assays are very low, typically
with one of them being below detection limit and the other slightly above detection limit.
13.3.2 EXTERNAL QA/QC CHECKS DONE BY IMZ
In addition to the internal QA/QC checks done by the SGS laboratory, the reliability of the
Inmaculada assay results is also monitored by an external QA/QC program conducted by IMZ.
As with the laboratory’s internal program, the external program is based on the use of standards
(to monitor accuracy), blanks (to monitor contamination) and duplicates (to monitor precision).
IMZ has a head office staff geologist who implements the external QA/QC program and
monitors the results of the standards, blanks and duplicates, looking for significant discrepancies
in duplicate results, anomalously high values for the blank samples or sample results which are
significant deviations from the accepted values for the standards. All anomalous results were
reported to IMZ’s exploration manager and followed up with the laboratory.
13.3.2.1 EXTERNAL STANDARDS
The external standards consist of five standards, three of which were manufactured by SGS from
local gold-silver mineralization, and two of which were commercial standards purchased from
Rocklabs Ltd., a commercial provider of standard reference materials. The gold standards range
from roughly 0.3 g/t to nearly 9 g/t; the silver standards range from trace quantities to over 1,000
g/t. As discussed earlier, the internal silver standards used by SGS covered only the lower silver
grades up to 30 g/t; the external silver standards used by IMZ span the entire range, and thus
serve as the better source of information on the accuracy of the high-grade silver assays.
Core samples from Inmaculada were shipped to IMZ’s Lima office where the standards and
blanks were inserted and the entire sample shipment prepared for delivery to the SGS laboratory
in Lima. Either a standard or a blank was inserted after every ten core samples, with standards
and blanks being used alternately; this results in one of the five standards being used after every
20th core sample.
The position of the QA/QC samples was determined in the field during logging and sample tags,
in sequence with the core samples, were reserved for QA/QC purposes so that the sample
numbering of the standards and blanks was seamlessly integrated with the core samples.
External standards were monitored using control charts like the one shown in Figure 13-3 below.
The red solid line on the control chart shows the reference value for the standard; the magenta
line shows the assay values reported by the lab; and the blue dashed lines define the acceptable
range for each standard, and are set at ± 10 % of the reference value.

On the rare occasions (less than five since 2007, usually for silver) where a standard fell outside
the acceptable range, IMZ staff followed up with the laboratory to determine if there was a need
to re-run the batch. The QA/QC data base records the specific action taken on each failure. In all
cases, discussions with the laboratory, and a review of the other assays in the same batch led to a
decision that no samples needed to be reanalyzed.
Figure 13-3: Example of Control Chart for External Standards
13.3.2.2 BLANKS
The material used as blanks for the Inmaculada Property is locally purchased stone from
Agregados Calcarea. As described above, a blank was inserted after every 20th sample, ten
samples before (and after) each standard.
Blanks were monitored using control charts like the ones shown in Figure 13-4 and 13-5. The
magenta line on the control chart shows the assay values reported by the lab; the blue line
defines the acceptable limit for blank assays. Since the locally purchased stone does, in fact,
contain trace amounts of gold and silver, the acceptable upper limit is set at a threshold designed
to detect significant cross-contamination of gold or silver from mineralized core samples.
Since the beginning of the Inmaculada drilling, there have been no blank samples that have
shown any significant cross-contamination between samples. On rare occasions, the silver blanks
assay above 1.5 g/t with an example of this in Figure 13-5. This level of silver is extremely low,
around the 1st percentile of the silver grade distribution (Figure 16-6), and is entirely consistent
with the trace amounts observed in one of the local sources used by Agregados Calcarea.

Figure 13-4: Control Chart for External Gold Blanks
Figure 13-5: Control Chart For External Silver Blanks

13.3.2.3 DUPLICATES
IMZ selects both pulp and coarse reject duplicates to be checked by reassaying. Approximately
10 % of all samples were sent for check assay. About 5 % of the coarse reject samples were
selected randomly, renumbered and sent back to the SGS laboratory for reassay. Approximately
5 % of the pulps were selected for reassay, usually based on unexpected assay results, and were
sent to a secondary laboratory for check assay. ALS Chemex in Lima was used as the secondary
laboratory by IMZ; it analyzes the samples using similar methods to those employed by the
primary laboratory, SGS.
The precision of duplicate assays was monitored using scatter plots, examples of which are
shown in Figures 13-6 and 13-7.
For the pulp duplicates, almost all of them (over 99 %) have the two assays within ± 10 % of
their average; with the pulp duplicates having been assayed by two different labs, this indicates a
very high degree of precision in the assay values. Furthermore, these inter-laboratory checks do
not indicate any problem with systematic bias in either laboratory.
The coarse reject duplicates show slightly less precision than the pulp duplicates, but still have
almost 90 % of the duplicates within ± 10 % of their average.
Since 2007, none of the duplicate scatter plots has indicated any problem with sample mix-ups
due to poor inventory control, or with typographical or transcription errors.
Figure 13-6: Example of Scatter Plot for Pulp Duplicates, Showing the Comparison of the
Original Silver Assays from the SGS Laboratory to the Duplicate Silver Assays from the
ALS Chemex Laboratory

Figure 13-7: Example of Scatter Plot for Coarse Reject Duplicates, Showing the
Comparison of the Original Gold Assays from SGS to a Second Gold Assay, Also by SGS,
Using the Coarse Reject
13.3.3 SCREENED METALLICS ASSAY CHECKS OF BIAS CAUSED BY

COARSE GOLD
To check for the possibility that the presence of coarse gold might create an analytical bias in the
conventional gold fire assays, IMZ resubmitted several higher grade samples for analysis using
the screened metallics method in which the coarse fraction is separated by sieving, fire-assayed
in its entirety and then recombined with a pair of conventional 30 g-aliquot fire assays of the fine
fraction. The results of this study are shown in Table 13.1.
The results tabulated in Table 13.1 generally show only very small differences between the
regular and screened metallics assays with no systematic bias. The differences in Table 13.1 are
similar to the differences observed between a first and second fire assay of a coarse reject. This
suggests that reliability of the conventional gold assays at Inmaculada are not compromised by
the presence of coarse gold.

Table 13.1: Comparison of Original Assays to Screened Metallics Assays
Original Assay Metallics Difference (g/t

(g/t Au) Assay (g/t Au) Au)
11.74 12.4 0.66
0.11 0.15 0.04
9.24 9.79 0.55
0.124 0.17 0.046
3.858 3.84 -0.018
10.33 11.32 0.99
2.712 2.93 0.218
17.73 17.74 0.01
32.88 36.45 3.57
7.46 7.6 0.14
9.63 9.32 -0.31
50.24 49.33 -0.91
1.83 1.64 -0.19
4.138 3.91 -0.228
4.131 4.32 0.189
11.28 11.14 -0.14
13.3.4 CHECKS OF CONSISTENCY WITH MULTIELEMENT CHEMISTRY

FROM ICP ANALYSES
The availability of ICP analyses for the vast majority of the Inmaculada drill holes makes it
possible to check the gold and silver assays using multi-element chemistry.
Figure 13-8 shows a comparison of the actual gold equivalent (“AuEq”), as calculated directly
from the gold and silver assays, to the predicted AuEq, as estimated from multi-element
chemistry using the following equation:
log10(AuEq) = -0.854 - 1.333×log10(La) + 0.392×log10(As) + 0.227×log10(Pb) + 0.320×log10(Cr)
The good agreement between predicted and actual gold-equivalent is likely due to the nature of
the mineralizing processes at Inmaculada. The positive correlation of AuEq with elements like
Pb reflects the association of lead-bearing minerals like galena (PbS) with gold and silver; the
negative correlation with rare-earth elements like La reflects the tendency of the plagioclases in
the andesites of the Tacaza Group to include rare-earth elements in their crystalline structure.
The good correlation between predicted and actual gold-equivalent provides an additional way of
checking the validity of anomalous gold and silver assays. If the gold-equivalent predicted using
multi-element chemistry is very different from the gold-equivalent calculated directly from the
gold and silver assays, then there is reason to seek confirmation of the gold and silver assays
through check assays.

Figure 13-8: Actual AuEq Assays Versus Predictions Based on Multi-Element Chemistry
For the 2010 resource update of Inmaculada, the geological interpretations of the mineralized
domains, which were developed using the gold and silver assays, were checked against the gold-
equivalent predicted from the multi-element ICP analyses. In only one instance, an interval with
very high gold grade in one of the minor splays, was the gold-equivalent predicted from multi-
element chemistry noticeably different from the value calculated directly from the gold and
silver assays.
Unlike the special QA/QC samples, which cover only 5-10 % of the assays, the consistency of
gold and silver assays with multi-element chemistry can be checked at virtually every sample
interval. Since gold assays involve different sample preparation than ICP analyses, the good
agreement between multi-element chemistry and gold-equivalent provides assurance that there is
not a problem with sample mix-ups. This further strengthens the conclusion that the assay data
are reliable for the purposes of resource estimation, both globally and locally.

13.4 SUMMARY AND CONCLUSIONS
Extensive measures have been taken to verify the data used for the September 2010 mineral
resource update for the Inmaculada Property. The electronic data base has been entirely
recompiled from original assay certificates provided by the laboratory. Though there are minor
shortcomings with the laboratory’s internal QA/QC program, these are well covered by IMZ’s
external QA/QC program. Consistency between multi-element chemistry and gold-equivalent
assays provides an additional level of confidence in the data. Independent check samples have
confirmed the original assay results.
The assay data have the accuracy and precision required for resource estimation, and the
electronic data base is reliable.

14.0 ADJACENT PROPERTIES
There are no properties of significance adjacent to the Inmaculada Property.

15.0 METALLURGICAL PROCESSING AND METALLURGICAL TESTING
15.1 METALLURGICAL TESTWORK
Metallurgical testing was initiated in mid 2009 and is currently on going in parallel with the
drilling program to evaluate process options for project development. It was initially decided to
split the deposit into three zones along strike for the purposes of metallurgical testing. As the
drill program progressed, samples were shipped to McClelland Laboratories (“McClelland”) in
Reno, Nevada for testing which has included:
• determination of standard “Bond” grinding and abrasion indices;

• response to whole ore cyanidation (heap and agitation leaching);
• response to flotation to produce concentrate for third party processing; and
• rougher concentrate and tailings response to cyanidation.
Based on testing to date heap leaching has been dropped from evaluation as a primary process
alternative. It may have a role in treatment of material below mill cut off grade in order to
maximize recovery of the deposit but for the purposes of this study it was decided to focus on
two primary options:
• Flotation to produce concentrate for shipment to third party smelting.

• Agitation leaching to produce dore bars on site.
15.1.1 SAMPLES
The first step in designing the test program was to identify zones within the deposit which
contained significant differences in host rock, weathering (clay content) mineralogy or oxidation
state that might affect metallurgical response. These zones had to be sufficiently distinct that
they could be selectively modeled and mined. After reviewing the data available it was
concluded that oxide and transition zones are virtually non-existent and that the deposit is
essentially all sulphide and highly intermixed. It was initially decided to split the deposit into
three zones along strike for the purposes of metallurgical testing.
• Zone 1: between lines 10,000N and 10,400N

Testwork was carried out in three phases:
• Phase One: which is now complete, addressed a composite sample from Zone 1 that
targeted ‘average’ grade (5 g/t AuEq).
• Phase Two: which is essentially complete pending final assay results, addressed
‘average’ head grade composite samples (5 g/t AuEq) for Zones 2 and 3.
• Phase Three: which is essentially complete pending final assay results, addressed a ‘high
grade’ composite (8 g/t AuEq) collected from in-fill drilling in Zone 1.

15.1.2 GRINDABILITY TESTS
Samples were submitted from all three Zones for Bond abrasion and work index testing at
Phillips Enterprises in Golden Colorado. Results were quite consistent throughout the deposit
and are summarized in Table 15.1.
Table 15.1: Bond Index Test Results
Sample Wi Kw.hr/mt Ai
Zone 1 16.71 0.4247
Zone 2 18.00 0.3995
Zone 3 16.72 0.4005
Average 17.14 0.4082
15.1.3 FLOTATION TESTWORK
Phase One flotation tests compared McClelland’s ‘standard’ reagent suite against those used at
Hochschild’s Selene mill operation since it was considered that treatment using the Selene mill
might be an option for accelerated project development similar to what occurred at the Pallancata
Mine. Based on a series of rougher tests at various grind sizes it was decided that there was little
difference in response to either reagent schemes. A final set of tests (F-8, 9, 10, 11, referred to in
Table 15.2) was run in one session to ensure consistency of operator methodology. Estimated
recoveries to rougher concentrate based on assayed heads and rougher tails averaged 91.4 % and
88.1 % respectively for gold and silver at P80 45 and 37 microns. Mass pull to rougher
concentrate averaged 11.75 %. Rougher concentrates were not assayed in order to conserve
material for cyanide leach testing.
Phase Two and Three included roughing tests at various grind sizes using McClelland’s reagent
suite described above in Phase One. Concentrates were not assayed in order to conserve material
for cyanide leach testing. Estimated recoveries to rougher concentrate based on assayed heads
and rougher tails ranged between 87.2 % and 94.4 % (average 89.7 %) for gold and between
80.4 % and 88.0 % (average 83.8 %) for silver at P80 45 microns. Generally recovery for both
metals increased compared to results at P80 75 microns.

Table 15.2: Summary Rougher Flotation Tests Inmaculada Phase 1
Grind Concentrate Assay Head Tailings Recovery (%)

Test (µ) (wt%) g Au/t g Ag/t g Au/t g Ag/t Au Ag
F-1 150 2.0 3.23 97.7 0.88 34.7 73.3 65.2
F-2 106 2.1 3.23 97.7 0.71 26.0 78.5 73.9
F-3 75 2.3 3.23 97.7 0.55 21.7 83.4 78.3
F-4 75 3.0 3.23 97.7 0.53 19.3 84.1 80.8
F-6 75 3.3 3.23 97.7 0.51 14.7 84.7 85.5
F-5 45 4.2 3.23 97.7 0.51 20.0 84.7 80.2
F-7 45 5.0 3.23 97.7 0.35 10.7 89.7 89.6
F-8 106 6.5 3.23 97.7 0.48 14.0 86.1 86.6
F-10 75 4.0 3.63 97.0 0.43 14.3 88.6 85.8
F-9 45 13.4 3.23 97.7 0.32 13.3 91.4 88.2
F-11 37 10.1 3.23 97.7 0.31 13.0 91.4 88.0
Kinetic testing was carried out on composites from Zone 1 (“high grade”) and Zones 2 and 3
(“average grade”), at P80 45 microns. Results are summarized in Figure 15-1 and Figure 15-2.
Figure 15-1: Gold Recovery Versus Mass Pull at 80 % -45 Microns
100
90
80
70
60
Au Recovery, %
50
40
30
20
10
0
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0
Weight Pull, %
Zone 1 Zone 2 Zone 3

Figure 15-2: Silver Recovery Versus Mass Pull at 80 % -45 Microns
100
90
80
70
60
Ag Recovery, %
50
40
30
20
10
0
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0
Weight Pull, %
Zone 1 Zone 2 Zone 3
Larger scale rougher flotation concentrates were combined with rougher concentrates from other
tests. These combined materials were subjected to two stage open circuit cleaning, producing the
following grades of concentrates (Table 15.3).
Table 15.3: Two Stage Open Circuit Concentrate Grades
Concentrate Grade
Sample Au (g/t) Ag (g/t) S (%)
Zone 1 444 8120 44.8
Zone 2 198 3960 37.4
Zone 3 106 4920 35.8
It appears that the deposit is amenable to flotation and will produce commercially acceptable
concentrate grades at high concentration ratio similar to IMZ’s Pallancata deposit. IMZ’s grind
evaluations indicate that feed to flotation should be in the P80 45 to 75 micron range at gold and
silver prices of $1,000 and $18 per ounce. Adequate grinding capacity has been included in plant
design to attain the finer grind size. Rougher flotation residence times were set at twice those
indicated by laboratory testing. Cleaner flotation times are considered “typical” and adequate for
this study pending further testwork.
Based on the available information, P&E assesses the test work to be thorough and performed to
acceptable standards. The initial flotation test results indicate that the Angela vein deposit is
amenable to the production of a commercially acceptable gold and silver bearing flotation
concentrate. The testing also indicates that metal recoveries at a grind of 45 microns in the
concentrate can be expected to be acceptable, ranging from 85 % to 90 % for gold and 80 % to
85 % for silver.

For the purposes of this study “base case” metallurgical recoveries for the flotation process were
set at 88 % gold and 83 % silver based on the average results from P80 45 micron tests for all
three zones. Mass pull to final concentrate has been assumed to be 1 % of mill feed.
15.2 PROCESS DESCRIPTION
Run-of-mine ore is crushed at a nominal rate of 312 t/h in three stages in a conventional crushing
circuit and directed to a stockpile. Feed to the grinding circuit is drawn from the stockpile at a
rate of 139 t/h and fed to a single stage ball mill – cyclone circuit to produce a flotation feed of
80 % minus 45 microns.
The flotation circuit consists of a roughing stage and two cleaning stages with no regrinding to
produce a final concentrate comprising approximately one percent of the feed weight.
Final flotation concentrate is thickened and filtered in a filter press to moisture content of 10 %.
The product is bagged for shipment.
Rougher tailings are thickened before discharge to a tailings pond and thickener overflow is
recycled to the process. Water is also reclaimed from the tailings facility for re-use, and
supplemented as required with fresh water.

16.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES
16.1 MINERAL RESOURCE ESTIMATES
The purpose of this section is to evaluate estimate of the mineral resources on the Angela vein in
compliance with NI 43-101 and CIM standards. This resource estimate was undertaken by
R. Mohan Srivastava, P. Geo. of FSS of Toronto, Ontario with an effective date of September 9,
2010.
16.1.1 DATA
16.1.1.1 ASSAY DATABASE
All of the drill holes for which assays were available by May 15, 2010 were used for resource
estimation. These include:
• Holes QU-01 through QU-31 (drilled by Hochschild). Of these, only QU-07 intersects
the Angela vein and is therefore the only one of the early holes that provides assay data
that affects the grade estimation (Figure 8-1). The other QU holes affect the definition of
the Angela vein geometry, their lack of Angela vein samples forcing closure on the
interpretation of the Angela vein.
• Holes INMA -01 through INMA -139 (except for INMA -127 that was not successfully
completed). Of these, the vast majority (115) intersect the Angela vein and therefore
provide assay data that affects grade estimation. The INMA holes that do not intersect the
Angela vein, and that affect the resource estimation only by forcing closure on the
interpreted geometry of the Angela vein, are: INMA-03, INMA-08 through INMA-13,
INMA-37, INMA-39 through INMA-42, INMA-45 through INMA-51, INMA-63,
INMA-74, INMA-76 and INMA-120.
None of the assays from chip samples from the surface outcrop of the Angela vein was used for
grade estimation; the mapped location of the Angela vein at the surface was used, however, in
the interpretation of the 3D geometry of the main Angela vein and its splays.
For the INMA- series holes, their assay information was recompiled from the Excel spreadsheets
provided by the SGS laboratory in Lima. For each sample interval, the grade used for estimation
was the average of all the available assays, including the lab’s internal duplicates. Table 16.1
summarizes the number of assays for which there was only one assay and the number of assays
for which duplicates were available.

Table 16.1: Number of Sample Intervals with Single Assays, and with Duplicate Assays
that were Averaged for Grade Interpolation in the Resource Block Model
Number of Intervals
Metal Method One assay Two assays Total
Au Fire assay with AA finish 7,176 858 8,034
Au Fire assay with gravimetric finish 414 56 470
Ag ICP 6,745 815 7,560
Ag AA 751 83 834
For those sample intervals where duplicate assays were available, checks were made of the
differences between the two assays to ensure that none of the gold and silver grades used for
grade interpolation was the average of two very different assays. The largest difference between
duplicate gold assays done with a gravimetric finish was 21 % (a 6.77 g/t assay whose duplicate
was 5.30 g/t); the largest difference between duplicate silver assays done with AA was 9 % (a
168 g/t value whose duplicate was 185 g/t). At the lower grades of the AA -finish gold assays,
and the ICP silver assays, the relative differences reached 50 % (e.g. a 0.4 g/t silver assay whose
duplicate was 0.2 g/t); but none of the differences pointed to any sample mix-up that might have
led to an inappropriate averaging of assay values that were entirely inconsistent with each other.
The original lab spreadsheets were not available for Hochschild drill hole QU-07; the gold and
silver assays for this early hole were taken directly from the electronic data base provided by
IMZ.
16.1.1.2 TOPOGRAPHY
Information on the topography of the ground surface in the project area comes from a ground
survey that was done by IMZ surveyors of the area surrounding the surface exposure of the
Angela vein, and that was extended to the northeast as drilling confirmed the northeastern
extension of mineralization at depth. Recently completed 1:5,000 aerial topography confirms
that the IMZ ground survey data is accurate to within ± 2 m, after a small vertical shift (on the
order of 2-3 m) to align the vertical datum used for local surveying with the PSAD56 datum used
for the aerial topography.
The consistency between the topography wireframe and the drill hole collars was checked. The
vast majority of drill hole collars (93 %) are within ± 1 m of the ground elevation provided by
the topography wireframe. The largest discrepancy was at INMA-113, where the surveyed
elevation of the drill hole collar is 3.65 m below the ground surface given by the topography
wireframe.
Since the drill hole collars are consistent with the wireframe developed from ground survey
control points, the small vertical shift from the PSAD56 vertical datum has no effect on resource
and reserve calculations. The wireframe constructed from the ground survey data is therefore
reliable for the purposes of a scoping study.

16.1.1.3 DENSITY
The density information used in the resource and reserve estimates comes from a study done by
Ventura in 2008 in which density was calculated for 100 samples of drill core from six
lithologies. Each sample was dried, weighed in air, sealed in wax and weighed in water. Using
Archimedes’ Principle, the dry bulk density of the material is based on the following formula:
Dry bulk density = Dry weight in air ÷ (Dry weight in air – Weight of sealed sample in
water)
Note that with the weight of the sealed sample was adjusted to take into account the weight of
the wax used to seal the sample before it was immersed in water.
Fifty one (51) of the 100 samples in this study were taken from the Angela vein. The average
density of these 51 samples was 2.51 t/m3. The average density of the 29 samples of unaltered
andesite material surrounding the mineralized vein was 2.54 t/m3. The average density of the 20
samples showing stockwork alteration in andesitic material was 2.44 t/m3.
The 51 samples of mineralized material suggest that there may be a very slight tendency for
density to decrease with increasing grade. The ten samples with highest gold-equivalent grades
(> 10 g/t) had an average density of 2.49 t/m3, while the ten samples with the lowest gold-
equivalent grades (< 1 g/t) had an average density of 2.53 g/t. With these differences being
small, only 1-2 %, and with too few samples to confirm whether or not they are statistically
significant, the current resource and reserve estimates use a single density constant, 2.51 t/m3, for
the Angela vein. If future studies establish that there is a statistically significant difference
between the density of well-mineralized Angela vein and weakly mineralized Angela vein, then
future resource studies should make use of densities that capture this relationship.
16.1.2 GEOLOGICAL AND STATISTICAL DOMAINS
All of the economically significant mineralization is hosted by the Angela vein and its splays.
The geometry of the main vein and its splays was interpreted in four wireframes (Figure 16-1):
• The main Angela vein.

• The Roxana Splay, a near-surface splay off the southwestern parts of the main vein that
has been mapped in outcrop, and that has been identified in the near-surface sample
intervals of several of the western drill holes.
• The Angela Splay, a deep splay off the northeastern parts of the main vein that has been
identified in deep sample intervals of several of the eastern drill holes.
• Minor Splays, a group of four splays that are smaller than the Roxana Splay and Angela
Splay but that host gold and silver grades that are sufficiently high and sufficiently close
to the main Angela vein that they could be developed as subsidiary stopes from the same
access drifts used to develop the main Angela stopes.

Figure 16-1: Horizontal Projection of Domains Used for Resource Estimation
Examples of the interpretation of these veins and splays are shown in Figure 16-2. The geometry
of the veins is well determined by their average dip, by the sharp change in gold and silver
grades and by surface exposure in outcrops. The hangingwall and footwall contacts of the veins
were picked initially from the geological logs, checked against the gold-equivalent grade, and
also checked using the gold-equivalent grade predicted from multi-element chemistry.

Figure 16-2: Northeast-Facing Cross-Sections Showing the Domains Used for Resource
Estimation

16.1.3 STATISTICAL ANALYSIS OF GOLD AND SILVER ASSAYS
Figure 16-3 shows side-by-side box plots of the gold assays within the four mineralized
domains, along with length-weighted summary statistics. Figure 16-4 shows the corresponding
box plots and statistics for the silver assays within the mineralized domains.
Figure 16-3: Side-By-Side Box Plots and Length-Weighted Summary Statistics for Gold
Assays in the Four Mineralized Domains

Figure 16-4: Side-By-Side Box Plots and Length-Weighted Summary Statistics for Silver
Assays in the Four Mineralized Domains.
The vast majority (roughly 90 %) of the assays are in the main Angela vein; accordingly, this
domain holds the lion’s share of the estimated mineral resource. Within the Angela vein, the
average gold grade is 4.64 g/t, and the coefficient of variation is 2.31; the average silver grade is
134 g/t, and the coefficient of variation is 1.62.

The other smaller splays have either gold or silver grades that are significantly different from the
main Angela vein:
• The Angela Splay has a similar average gold grade, but has an average silver grade
nearly twice that of the main vein.
• The Roxana Splay has a much lower grade, both in gold and in silver.
• The Minor Splays have some extremely high gold assays that make their average gold
grade very high, and that give them a very high coefficient of variation. The silver grades
in the Minor Splays are much lower, on average, about half that of the main vein.
Because of these differences in the gold and silver distributions, the four mineralized domains
are treated separately, with ‘hard’ boundaries; grade estimates within each domain make use of
only the assays from the same domain. This prevents blurring of grade between the splays and
the main vein, this reducing the possibility of local overestimation and underestimation in the
region where the splays meet the main vein.
As shown by Figure 16-5, there is a strong correlation between gold and silver within the Angela
vein and its mineralized splays, with the silver:gold ratio being about 30:1.
Figure 16-5: Scatter Plot of Silver Versus Gold Within the Mineralized Domains

16.1.4 GRADE CAPPING
Figure 16-6 shows the cumulative probability plots of gold and silver, using a logarithmic scale
to make the details of the high-grade tails more apparent.
To limit the influence of erratic high grade assays on resource estimates, the assays have been
capped at the grade where the high-grade tail of the distribution breaks up: 100 g/t (the 99.8th
percentile) for gold, and 1,500 g/t (the 99.8th percentile) for silver.
Figure 16-6: Log-Probability Plots for Gold and Silver Assays in the Mineralized Domains
16.1.5 VARIOGRAMS
Since gold and silver are very well correlated within the mineralized domains (Figure 16-5),
their patterns of spatial variation will be very similar, and one variogram model will suffice for
both metals. Variogram analysis was therefore done on gold-equivalent, defined as:
AuEq = Au + Ag ÷ 60
The factor of 60 reflects the combined effect of the metal prices and the metal recoveries: a gram
of gold, in situ, has roughly the same value as 60 grams of silver, in situ.
Figure 16-7 shows the experimental variograms for gold-equivalent, along with the spherical
variogram models for interpolation of both gold and silver. In the direction perpendicular to the
vein system, the range of correlation is 5 m; in the plane of the vein system, both along strike
and down-dip, the range of correlation is 75 m. The nugget effect is 35 % of the sill.

Figure 16-7: Experimental Variograms (Solid Line) and Variogram Models (Dotted Line)
for AuEq
16.1.6 LOCAL COORDINATE SYSTEM AND BLOCK MODEL ORIENTATION
As shown in Figure 16-8, the resource block model has been oriented so that it runs parallel to
the northeasterly strike of the Angela vein (refer to Figure 6-3).

Figure 16-8: Resource Block Model Configuration
The resource block model uses blocks that are 10 m long (along the strike of the vein) by 2 m
wide (across the width of the vein) by 10 m high (in the vertical direction).
The 217 10 m columns of the block model go from Section 9845 of the local grid used to define
the geology cross-sections to Section 12015.
The block model area lies to the southeast of the line used to define the geology longitudinal
section for the Angela vein, with its 2 m rows extending just far enough to the northwest to
include the surface outcrop of the Angela vein, and extending just far enough to the southeast to
include the Angela vein’s interpreted geometry at an elevation of 4115 m.

In the vertical direction, the 55 10 m levels of the block model go from 4115 m to 4665 m.
16.1.7 ORDINARY KRIGING
16.1.7.1 ESTIMATION OF TONNAGE
Within each 10×10×2 m block, the mineralized tonnage contributed by each of the four
mineralized domains was estimated by calculating the volume of the intersection of the domain
wireframe with the rectangular block and multiplying this by the assumed dry bulk density of
2.51 t/m3.
The estimated resource tonnage in each block is the sum of the tonnages within each of the four
mineralized domains.
16.1.7.2 ESTIMATION OF GRADE
In any block that has non-zero estimates of the tonnage for any domain, the gold and silver
grades for that domain’s tonnage were calculated using ordinary kriging of the nearby assays that
fall within that domain.
The ordinary kriging search neighbourhood was a sphere with a search radius of 75 m (the range
of the variogram along the vein). Because the domain wireframes serve as hard boundaries, the
distance to nearby samples in the direction across the vein is controlled by the wireframes, and
not by the 75 m radius of the spherical search. This makes the search neighbourhood like a
‘pancake’ that is parallel to the vein, with a circular radius of 75 m in the plane of the vein, and a
thickness equal to the full width of the vein.
An octant search was used to limit the effects of sample clustering, with the octants configured
like slices of a pie, looking perpendicular to the vein at the 75 m circular projection of the search
neighbourhood. Within each, only the closest four samples were retained for estimation.
For the purposes of the calculation of the average variogram value between the samples and the
10×10×2 m blocks, the blocks were approximated by 64 points spaced at 2.5×2.5×0.5 m (i.e. by
a regular grid with four columns, rows and levels within each block).
The estimation of grade directly used the capped drill hole assays; no compositing was
performed. Once the ordinary kriging weights had been calculated, these weights were
multiplied by the assay length, and then renormalized to sum to one. This ensures that the
variable sample length is correctly accounted for in the grade estimation.
Within each 10×10×2 m block, the grade estimates for each of the four mineralized domains
were combined into a grade estimate for the mineralized tonnage within the entire block by
calculating the tonnage-weighted average of the grade estimates for each of the four mineralized
domains.

16.1.8 CHECKS OF BLOCK MODEL ESTIMATES
16.1.8.1 SOFTWARE
All of the resource estimates were performed using the Micromine® software system, and cross-
checked using in-house software developed by FSS Canada. Globally, the tonnage estimates
from the two independent calculations were within 1 % of each other, and the grade estimates
were within 3 % of each other for the blocks classified as measured and indicated (and within
5 % for the blocks classified as inferred).
16.1.8.2 TONNAGE CHECKS
Tonnage estimates were checked visually, domain by domain, using the 3-D viewing capability
of Micromine® to ensure that the individual domain tonnage estimates correctly respect the
domain boundaries, and also to check that total block tonnages correctly account for the
intentional overlaps between wireframes (which were used to make sure that no tonnage was lost
in small gaps between wireframes, and that the wireframes extend properly to the surface where
the veins are known to outcrop).
Figure 16-9 is a typical cross-section showing the estimated total tonnage from all domains along
with the outlines of the domain wireframes. The tonnage estimates in this figure have been
colour-coded using a gray scale, with solid black blocks having 100 % of their tonnage (502 t)
within the Angela vein and solid white blocks having no tonnage within the Angela vein.

Figure 16-9: Check of Tonnage Estimates on Section 10050

16.1.8.3 GRADE CHECKS
Grade estimates were checked visually, domain by domain, using the 3-D viewing capability of
Micromine® to ensure that the individual gold and silver grade estimates are consistent with the
nearby drill hole data. Figure 16-10 is a typical cross-section showing the estimated gold-
equivalent grade for each block along with the original drill hole data on the same section.
Figure 16-10: Check of Gold-Equivalent Grade Estimates on Section 10050

Grades were also checked by doing ‘swath plots’ that compare the average grade estimates to the
length-weighted average of the original drill hole data along the columns, rows and levels of the
block model. Figure 16-11 shows these swath plots comparisons for gold equivalent. The block
estimates show less total variability than the original assay data, but the peaks and troughs in the
drill hole data are picked up in the estimates. There is a slight shift in the swath plot done along
the rows of the model; this is due to the fact that the vein system is not vertical, but dips steeply
to the southeast. Calculations of average assays done along the vertical rows of the model will be
slightly offset from the same calculations done for the block estimates since deep assays with
low row numbers will contribute to the estimate of blocks with higher row numbers.
Figure 16-11: Swath Plots Comparing the Average AuEq from the Block Model Estimates
to the Average AuEq Calculated Directly from the Original Drill Hole Assays

16.1.9 RESOURCE CLASSIFICATION
Mineral Resources were classified according to the December 2005 CIM guidelines, which
require that resource classification conform to the following terminology and definitions:
A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or
quality, densities, shape, and physical characteristics are so well established that they can be
estimated with confidence sufficient to allow the appropriate application of technical and
economic parameters, to support production planning and evaluation of the economic viability of
the deposit. The estimate is based on detailed and reliable exploration, sampling and testing
information gathered through appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes that are spaced closely enough to confirm both geological and
grade continuity.
An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or
quality, densities, shape and physical characteristics, can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and economic parameters, to support
mine planning and evaluation of the economic viability of the deposit. The estimate is based on
detailed and reliable exploration and testing information gathered through appropriate techniques
from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely
enough for geological and grade continuity to be reasonably assumed.
An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade
or quality can be estimated on the basis of geological evidence and limited sampling and
reasonably assumed, but not verified, geological and grade continuity. The estimate is based on
limited information and sampling gathered through appropriate techniques from locations such
as outcrops, trenches, pits, workings and drill holes.
A CIM compliant classification was achieved using a two step procedure. In the first step, each
block was assigned an integer code, from 1 to 3, using the following criteria:
1. Blocks within 25 m (one third the variogram range) of a drill hole sample, and with
samples closer than 75 m (the variogram range) in at least four octants, were assigned a
value of 1.
2. Blocks that were not assigned a 1, but that were within 50 m (two thirds the range of the
variogram) of a drill hole sample, and with samples closer than 75 m (the variogram
range) in at least three octants, were assigned a value of 2.
3. Blocks that were not assigned a 1 or 2, but that were within 75 m (the range of the
variogram) of a drill hole sample were assigned a value of 3.
4. Regardless of the previous assignments, all blocks that had no tonnage contribution from
the Angela vein were assigned a value of 3.
The first criterion gives a value of 1 to blocks that are well-informed by nearby data, and that are
well-surrounded by data. The second gives an intermediate value to blocks that have data well
within the range of the variogram, but that are slightly less well-informed and well-surrounded
than the first group. The third criterion gives a value of 3 to all blocks that are correlated with at
least one nearby sample. The final criterion ensures that the only blocks that receive 1s or 2s
must be in the main Angela vein.

Figure 16-12 shows these integer codes on a longitudinal section of the main Angela vein. In a
broad sense, the 1s correspond to “measured”, the 2s to “indicated” and the 3s to “inferred”. As
often occurs with numerical criteria evaluated on a block-by-block basis, however, there are
locations where the classification changes abruptly, creating small islands of 1s surrounded by
3s, and vice versa.
Figure 16-12: Integer Codes After First Step of Block-By-Block Classification
In order to provide a classification that pertains to the tonnages involved in mid-term and long-
term mine planning, the initial codes shown in Figure 16-12 were spatially averaged, using a
moving elliptical window with a radius of 200 m along strike and 50 m up and down dip. Since
this ellipse corresponds roughly to the volume of ore that would be mined in three months, this
smoothing step creates a classification that is pertinent to quarterly production planning
increments.
Measured blocks are those that have a value of 1.5 or less after the spatial smoothing step;
Indicated blocks are those that have a value of 2.5 or less; and Inferred blocks are those that have
a value of 2.5 or more. Figure 16-3 shows a longitudinal section of the final classification of the
Angela vein; in all of the minor veins and splays, the final classification was Inferred.

Figure 16-13: Final Classification After Second Step Of Spatial Averaging Of Integer
Codes
Measured Resources lie entirely in the southwestern portions of the Angela vein, where it
outcrops and where it has been drilled on 50 m sections, with holes that pierce the vein at
roughly 25 m spacing down dip. There are Indicated Resources in the central area, where there is
drilling on 50 m sections, with holes that pierce the vein at roughly 50 m spacing down dip. In
the remainder of the deposit, where the average drill hole spacing is greater than 50 m, there are
Inferred Resources.

16.1.10 SUMMARY OF CLASSIFIED MINERAL RESOURCES
Table 16.2 summarizes the estimated mineral resources using a cut-off of 3 g/t on the estimated
gold-equivalent grade.
Table 16.2: Mineral Resource Estimate for the Angela vein at a Cut-Off Grade of 3 g/t
AuEq (as of September 9, 2010)
GRADE IN SITU METAL CONTENT 1
Tonnage AuEq2 AuEq2

CLASSIFICATION (Mt) Au (g/t) Ag (g/t) (g/t) Au (oz) Ag (oz) (oz)
Measured 1.080 5.10 107 6.9 178,000 3,717,000 240,000
Indicated 2.747 4.00 137 6.3 354,000 12,128,000 556,000
Measured + Indicated 3.827 4.30 129 6.5 532,000 15,845,000 796,000
Inferred 4.388 4.60 200 7.9 645,000 28,283,000 1,116,000
1. Metal content is 100 % of estimated metal in situ. IMZ will hold 40 % of the Property (60 % Hochschild) as
2. Gold equivalent is calculated as Gold + (Silver ÷ 60) to reflect current metal prices and current information on
relative metallurgical recoveries.
3. Numbers have been rounded to reflect the precision of a resource estimate.
16.2 MINERAL RESERVES
There are no mineral reserves on the Inmaculada Property. A mineable mineral resource estimate
is discussed in Section 22 of this Report.

17.0 OTHER RELEVANT DATA AND INFORMATION
There are no other data considered relevant to this Report that have not previously been
included.

18.0 INTERPRETATION AND CONCLUSIONS
The reader is referred to Section 29 of this Report for Interpretations and Conclusions.

19.0 RECOMMENDATIONS
The reader is referred to Section 30 of this Report for Recommendations.

20.0 REFERENCES
The reader is referred to Section 31 of this Report for References.

21.0 CERTIFICATES
The reader is referred to Section 32 of this Report for Certificates.

22.0 MINEABLE MINERAL RESOURCE ESTIMATE
22.1 UNDILUTED MINABLE RESOURCES
A longitudinal section outline of the minable portion of the Angela, Splay, Roxana and Minor
veins is shown in Figure 22-1. Only the Angela vein is considered for this Preliminary Economic
Assessment.
Access to the underground stopes will be via main north and south ramps driven in the footwall
at a -15 % grade. A ramp access cross-cut will be driven from these ramps every 480 m
(approximately) along strike to four spiral ramps that follow the full footwall extent of the
Angela vein mineralization. Stope access cross-cuts will be driven every 25 m vertical to the
Angela vein. The Angela vein is divided into four stoping blocks, SZ1, SZ2, NZ1 and NZ2, each
centred on one spiral (refer to Figure 23-1 for the location of the blocks). Each stope will have a
north and south stoping area developed from sublevels driven in mineralization on strike a
maximum 244 m from the stope access cross-cuts. Slot / exhaust raises will be driven at the end
of each drift in mineralization to the sublevel 25 m above. Stope mining will retreat from the slot
/ exhaust raise to the stope access cross-cut in 25 m high lifts.
A summary of the mineable portion of the undiluted Angela vein resources is presented in
Table 22.1.
Table 22.1: Mineable Portion of the Undiluted Angela Vein Resource

SZ1 1,338,427 4.78 105 6.53
SZ2 2,611,090 3.30 145 5.71
NZ1 1,331,231 7.23 228 11.03
NZ2 1,754,550 4.12 190 7.28
Total Angela 7,035,299 4.53 164 7.27
Note: Table 22.1 represents 100 % of the Property. IMZ will hold 40 % of the Property (60 % Hochschild) as
Of the total 8.2 Mt of measured, indicated and inferred resources in the Angela vein an estimated
7.0 Mt grading 4.53 g/t Au and 164 g/t Ag is considered mineable before dilution and mine
extraction (recovery).

Figure 22-1: Longitudinal Section of the Minable Portion of the Angela, Splay, Roxana and Minor Veins

22.2 MINE DILUTION
The mining method selected is longhole sublevel retreat using paste backfill. Mine dilution will
come from: drilled and blasted waste rock, due non uniform mineralization / waste contacts;
internally drilled and blasted waste rock; slough coming off both the hanging and footwalls; and
from the paste backfill. With the longhole sublevel retreat using paste backfill mining method
P&E estimates mine dilution, at zero grade, will be 20 %.
A summary of the diluted unrecovered mineable portion of the Angela vein resources is
presented in Table 22.2.
Table 22.2: Diluted Unrecovered Mineable Portion of the Angela Vein Resource

SZ1 1,610,009 3.98 87 5.44
SZ2 3,133,308 2.75 121 4.76
NZ1 1,597,477 6.03 190 9.19
NZ2 2,111,273 3.44 158 6.08
Total Angela 8,452,067 3.78 137 6.06
There is an estimated total 8.4 million tonnes, grading 3.78 g/t Au and 137 g/t Ag in the Angela
vein after a 20 % mine dilution, at zero grade, before mine extraction (recovery).

22.3 MINE EXTRACTION (RECOVERY)
P&E estimates 5 % of the diluted mineable portion of the Angela resources will be lost in the
stopes due to falls of ground, inaccessible broken resources and broken resources left on the
floor of the stopes.
A summary of the diluted recovered mineable portion of the SZ1 stoping block Angela vein
resources, by level, is presented in Table 22.3.
Table 22.3: Diluted Recovered Mineable Portion of the SZ1 Angela Vein Resource
Stope Area Level Total Tonnes Au (g/t) Ag (g/t) AuEq (g/t)

SZS1 4590EL 3,569 2.74 57 3.70
Sill Stope 4565EL 33,218 2.74 57 3.70
4540EL 43,983 3.43 67 4.54
4515EL 90,249 3.98 79 5.29
4490EL 100,149 3.18 93 4.73
4465EL 110,994 3.94 84 5.35
Sill Stope 4440EL 103,680 5.56 94 7.13
4415EL 111,489 5.37 90 6.86
4390EL 81,481 5.46 97 7.07
4365EL 35,733 4.91 70 6.07
SZS1 Subtotal 714,544 4.42 85 5.85
SZN1 4615EL 326 2.70 93 4.24
4590EL 17,183 2.70 93 4.24
Sill Stope 4565EL 94,956 3.40 86 4.84
4540EL 77,764 3.89 68 5.02
4515EL 64,118 6.92 121 8.95
4490EL 81,118 5.42 107 7.21
4465EL 101,588 3.09 80 4.43
Sill Stope 4440EL 114,611 2.78 80 4.12
4415EL 113,120 2.71 84 4.11
4390EL 96,160 3.12 96 4.73
4365EL 54,215 2.49 87 3.93
SZN1 Subtotal 815,159 3.60 89 5.08
Total SZS1&SZN1 1,529,703 3.98 87 5.44

A summary of the diluted recovered mineable portion of the SZ2 stoping block Angela vein
Table 22.4: Diluted Recovered Mineable Portion of the SZ2 Angela Vein Resource

SZS2 4615EL 14,324 3.15 56 4.09
4590EL 84,901 3.09 55 4.02
Sill Stope 4565EL 97,548 3.92 74 5.16
4540EL 136,097 4.45 86 5.89
4515EL 140,984 4.57 87 6.02
4490EL 119,916 4.22 87 5.67
4465EL 108,367 4.06 94 5.63
Sill Stope 4440EL 98,037 3.39 101 5.06
4415EL 117,486 3.44 116 5.37
4390EL 148,192 2.73 109 4.56
4365EL 110,344 2.55 120 4.55
4340EL 84,491 2.16 115 4.07
Sill Stope 4315EL 87,645 1.99 94 3.56
4290EL 44,861 1.98 87 3.44
4265EL
SZS2 Subtotal 1,393,193 3.41 95 4.99
SZN2 4565EL 13,823 2.53 62 3.57
4540EL 22,348 2.29 67 3.40
4515EL 78,345 1.98 103 3.69
4490EL 134,097 1.68 131 3.86
4465EL 140,913 1.77 150 4.28
Sill Stope 4440EL 179,696 1.87 157 4.49
4415EL 190,360 2.10 138 4.40
4390EL 166,033 2.59 144 5.00
4365EL 163,452 2.69 149 5.17
4340EL 169,069 2.42 167 5.21
Sill Stope 4315EL 137,636 2.55 170 5.39
4290EL 99,196 1.91 127 4.02
4265EL 88,483 1.72 131 3.89
SZN2 Subtotal 1,583,450 2.16 144 4.56
Total SZS2&SZN2 2,976,643 2.75 121 4.76

A summary of the diluted recovered mineable portion of the NZ1 stoping block Angela vein
Table 22.5: Diluted Recovered Mineable Portion of the NZ1 Angela Vein Resource

NZS1 4465 9,480 5.05 96 6.65
Sill Stope 4440 65,998 4.68 103 6.41
4415 72,310 3.67 93 5.22
4390 76,548 3.24 96 4.84
4365 99,540 3.11 112 4.97
4340 111,308 3.41 125 5.50
Sill Stope 4315 94,229 3.40 121 5.42
4290 77,999 5.90 160 8.56
4265 62,384 7.84 177 10.79
4240 44,761 4.88 114 6.79
4215 28,050 4.25 92 5.79
NZS1 Subtotal 742,608 4.26 120 6.27
NZN1 4440EL 22,468 6.04 136 8.31
4415EL 41,925 8.50 202 11.87
4390EL 60,707 9.15 231 12.99
4365EL 73,132 6.87 205 10.29
4340EL 88,223 6.90 228 10.70
Sill Stope 4315EL 100,741 8.13 288 12.92
4290EL 108,172 10.47 359 16.46
4265EL 116,605 9.77 338 15.40
4240EL 97,416 4.23 192 7.43
4215EL 65,606 4.92 185 8.00
NZN1 Subtotal 774,996 7.72 256 11.99
Total NZS1&NZN1 1,517,604 6.03 190 9.19

A summary of the diluted recovered mineable portion of the NZ2 stoping block Angela vein
Table 22.6: Diluted Recovered Mineable Portion of the NZ2 Angela Vein Resource

NZS2 4465EL 5,813 5.61 172 8.48
Sill Stope 4440EL 38,214 5.61 172 8.48
4415EL 80,159 6.11 126 8.21
4390EL 100,758 6.20 128 8.34
4365EL 111,102 5.74 133 7.96
4340EL 187,396 2.39 139 4.71
Sill Stope 4315EL 206,710 2.37 168 5.17
4290EL 206,447 2.23 166 5.00
4265EL 157,400 2.58 193 5.79
4240EL 65,434 3.20 245 7.28
4215EL 29,112 2.98 237 6.93
NZS2 Subtotal 1,188,547 3.45 163 6.17
NZN2 4490EL 13,102 4.91 153 7.46
4465EL 82,497 3.96 134 6.19
Sill Stope 4440EL 87,324 3.95 137 6.24
4415EL 88,145 3.85 116 5.78
4390EL 79,309 3.85 132 6.06
4365EL 81,813 3.63 137 5.91
4340EL 90,918 3.55 160 6.22
Sill Stope 4315EL 81,641 3.11 177 6.06
4290EL 83,481 2.79 188 5.91
4265EL 62,204 2.90 182 5.94
4240EL 41,525 1.96 176 4.89
4215EL 25,492 1.94 140 4.27
NZN2 Subtotal 817,453 3.42 152 5.95
Total NZS2&NZN2 2,006,000 3.44 158 6.08

A summary of the total diluted recovered mineable portion of the Angela vein resources is
Table 22.7: Total Diluted Recovered Mineable Portion of the Angela Vein Resource
Stope Area Total Tonnes Au (g/t) Ag (g/t) AuEq (g/t)

Total SZS1&N1 1,529,703 3.98 87 5.44
Total SZS2&N2 2,976,643 2.75 121 4.76
Total NZS1&N1 1,517,604 6.03 190 9.19
Total NZS2&N2 2,006,000 3.44 158 6.08
Total Angela 8,029,949 3.78 137 6.06
A total of 8.0 Mt, grading 3.78 g/t Au and 137 g/t Ag, is estimated be recovered from the Angela
vein after 20 % mine dilution, at zero grade, and 95 % mine extraction (recovery).

23.0 MINING OPERATIONS
23.1 INTRODUCTION
The deposit geometry indicates the potential application of a bulk mining method with
longitudinal longhole sublevel retreat mining, with paste backfill, is proposed.
23.2 MINE PLAN
23.2.1 PRIMARY ACCESS
Primary access to the underground workings will be via two 5 m wide x 5 m high main ramps
driven in the footwall at a -15 % grade from two separate north and south portal locations. This
heading size will accommodate 40 t haul trucks in the ramps. A 590 m long -15 % ramp will
connect these main ramps. A 5 m wide x 5 m high main access cross-cut will be driven from
these ramps every 480 m (approximately) along strike to four spiral ramps. The reader is referred
to Figures 23-1, 23-2 and 23-3 for the ramp and cross-cut layouts. A summary of the primary
access development quantities is summarized in Table 23.1.
Table 23.1: Primary Access Development Quantities
Main Ramps and X-Cuts Metres

South Ramp 982
North Ramp 1,781
Connection between Ramps 590
Access X-Cuts 179
Total 3,533
Main ramp development quantities include a 15 % allowance for miscellaneous excavations such
as muck bays, safety bays, electrical substations, sumps, refuge stations, powder magazines, etc.
Mucks bays will be spaced halfway between sublevels in spiral ramps (providing rock storage
capacity every 85 m during development ) and at 150 m intervals in the main ramps. This will
keep face mucking scooptram haulage distances to a reasonable distance to facilitate optimum
ramps advance rates. Safety bays will be spaced at 30 m intervals and / or as required. Waste
from ramp headings and other level development will be trucked to surface or placed in mined
out areas.
All underground associated services facilities, except the main maintenance shop complex, will
be located centrally to each spiral ramp work area.
Ventilation will utilize a combination of intake and exhaust raises with a push-pull ventilation
arrangement.
Services installed in the ramps will include a 203 mm compressed air line, 152 mm water line,
102 mm drain line, communications fibre optic cable, central blasting cable and a 660 V and a
240 V power cable.

Figure 23-1: Longitudinal Section (Looking West) Showing Stopes and Development

Figure 23-2: 4365 L Plan View Showing a Typical Ore Pass, Fresh Air Raise and Ramp Connections

Figure 23-3: 4265 L Plan View Showing a Typical Ore Pass, Fresh Air Raise and Ramp Connections

All ramps and lateral development will be excavated using 2 boom electric hydraulic drill
jumbos, 6.4 m3 LHD’s, 40 t haul trucks, scissor lifts and other rubber tired diesel-powered
support equipment.
23.2.2 STOPE ACCESS
Four 5 m wide x 5 m high -15 % spiral ramps will be driven at approximately 480 m intervals
along the strike of the Angela vein, in the footwall. Refer to Figure 23-1 for a longitudinal
section of the layouts and Figure 23-4 for a typical cross section of the spiral ramp layouts. Each
spiral ramp will follow the full vertical extent of the Angela vein mineralization and be driven
approximately 50 m from the footwall of the vein. Stope access cross-cuts, 4 m wide x 4.5 m
high, will be driven every 25 m vertical at +3 % from the spiral ramps to the Angela vein. A 3 m
diameter fresh air raise (“FAR”) will be raise bored between each spiral ramp and the footwall of
the Angela vein, and connected to the stope access cross-cuts. A 2.4 m x 2.4 m drop raise ore
pass system will be excavated between each spiral ramp and the footwall of the Angela vein, and
connected to the stope access cross-cuts. Haul trucks will be loaded in the access cross-cuts at
the ore pass location to transport mineralization via the main ramps to the processing plant. The
ore passes will be equipped with dumps connected to the main ore pass raise via short finger
raises. The dumps will be equipped with scalper grizzlies having 500 mm openings.
Other sublevel development will include a small water collection sump and temporary electrical
sub-station. Services installed in the stope access cross-cuts includes a 102 mm compressed air
line, 102 mm water line, 102 mm drain line, communications fibre optic cable, central blasting
cable and a 660 V and a 240 V power cable.

Figure 23-4: Typical Cross Section of the Spiral Ramp Layouts

The Angela vein is divided into four stoping blocks, SZ1, SZ2, NZ1 and NZ2, each centred on
one spiral. A summary of the stope access development planned is presented in Table 23.2.
Table 23.2: Stope Access Development Quantities
Stope Development Metres

Spiral Ramp 1,744
Stope X-Cuts 614
SZ1 Fresh Air Raise 266
Ore Pass 172
Subtotal 2,796
Spiral Ramp 2,713
Stope X-Cuts 910
SZ2 Fresh Air Raise 425
Ore Pass 274
Subtotal 4,322
Spiral Ramp 1,938
Stope X-Cuts 546
NZ1 Fresh Air Raise 446
Ore Pass 147
Subtotal 3,077
Spiral Ramp 2,132
Stope X-Cuts 688
NZ2 Fresh Air Raise 451
Ore Pass 261
Subtotal 3,533
Grand Total 13,728
23.2.3 STOPE DEVELOPMENT
Each stope will have a north and south stoping area developed from the 4 m wide x 4.5 m high
drifts driven in mineralization, to a maximum 244 m from the stope access cross-cuts.
Slot / exhaust drop raises, 2.4 m x 2.4 m, will be excavated at the end of each of these drifts to
the sublevel 25 m above.

A summary of the stope development planned is presented in Table 23.3.
Table 23.3: Stope Development Quantities
AuEq
Stope Development Metres Ore (t) Au (g/t) Ag (g/t) (g/t)
Drift In Waste 382
Drift in Ore 4,033 182,211 3.89 86 5.32
SZ1 Exhaust Raises in Waste 66
Slot Raise/Exhaust Raise in Ore 461 6,668 3.82 83 5.20
Subtotal 4,942 188,879 3.88 86 5.32
Drift In Waste 839
Drift in Ore 5,376 242,888 2.75 114 4.65
SZ2 Exhaust Raises in Waste 150
Subtotal 7,060 252,939 2.75 114 4.65
Drift In Waste 606
Drift in Ore 4,507 203,626 5.98 179 8.97
NZ1 Exhaust Raises in Waste 439
Subtotal 6,010 210,251 5.97 179 8.96
Drift In Waste 560
Drift in Ore 4,815 217,529 3.73 159 6.38
NZ2 Exhaust Raises in Waste 205
Subtotal 6,111 225,201 3.74 159 6.38
Total – In Waste 3,246
Total – In Ore 20,876 877,271 4.02 135 6.27
Grand Total 24,122
23.2.4 STOPING
Stope mining will retreat from the slot / exhaust raise to the stope access cross-cut in 25 m high
lifts, from the bottom up. Initial development consists of a drift and overcut, and a drift and
undercut created at the top and bottom, respectively, of the first 25 m high mining block. A slot
raise is driven at the end of each stope. Down dip long holes will be drilled approximately
20.5 m in length, and 92 mm in diameter, on a 2 m by 2 m burden and spacing pattern from the
sublevel above to break through into the undercut. Drilling of holes for the stopes would utilize
an ITH drill mounted on a rubber tired diesel powered carrier. All drill holes would be loaded
with ANFO and initiated using non-el caps. The blasting power factor will be 0.6 kg/t. Stopes
would be blasted in a series of blasts comprising 4 or 5 rings at a time. Mucking of stopes would
be carried out in the undercut with 4.5 m3 Load-Haul-Dump (“LHD”) units loading at the stope
brow and later remotely in the stopes. The LHD would transport ore back to the stope access
cross-cuts ore pass. Paste backfill, with 3 to 4 % cement content, will be placed in the stope
behind the stope mining face as it advances, from the upper drift sublevel. High strength
cemented paste backfill will be required in the ‘sill’ stope above ( first and lowest stope block).
After filling the backfill would be left to cure for approximately 15 days before the next stope
blast is initiated. Backfill would be piped into the void via piping hung from the back of the
overcut of a stope. This sequence of drilling, blasting and backfilling will continue until the
central access is reached. The next vertical 25 m stope above is then mined with mucking on the
fill of the stope below. The initial stope, directly above a ‘sill’ stope, will be backfilled with high
strength cemented paste backfill.
Each stope will have a north and south mining area, developed from the access cross-cut. To
optimize the number of working areas, stoping areas will be started every 125 m vertically. This
will include four 25 m high regular stopes and one 25 m high sill stope. Stoping drifts will be
driven 4.0 m wide by 4.5 m high. In sublevel drifts where mineralized widths are greater than
4.0 m wide drifts will be slashed to footwall and hanging wall contacts.
A summary of the average stope strike length and width is presented in Table 23.4.
Table 23.4: Stoping Area Strike Length and Average Width
Height Strike Av. Width

Stope Area (m) length (m) (m)
SZ1 - South 25 237 5.54
SZ1 - North 25 237 5.84
SZ2 - South 25 237 6.63
SZ2 - North 25 244 8.39
NZ1 - South 25 241 4.66
NZ1 - North 25 237 5.25
NZ2 - South 25 237 9.36
NZ2 - North 25 237 4.18
Weighted Average 25 239 6.65

A summary of SZ1 Angela vein resource development and stoping tonnes is presented in
Table 23.5.
Table 23.5: SZ1 Angela Vein Resource Development and Stoping Tonnes
Stope Devel. AuEq

Area Level (t) Slot (t) Stope (t) Total (t) Au (g/t) Ag (g/t) (g/t)
SZS1 4590EL 3,569 0 3,569 2.74 57 3.70
Sill Stope 4565EL 3,569 304 29,345 33,218 2.74 57 3.70
4540EL 10,843 311 32,829 43,983 3.43 67 4.54
4515EL 10,843 296 79,109 90,249 3.98 79 5.29
4490EL 10,527 300 89,322 100,149 3.18 93 4.73
4465EL 11,159 302 99,532 110,994 3.94 84 5.35
Sill Stope 4440EL 11,159 357 92,163 103,680 5.56 94 7.13
4415EL 11,114 362 100,012 111,489 5.37 90 6.86
4390EL 5,331 332 75,818 81,481 5.46 97 7.07
4365EL 5,648 318 29,768 35,733 4.91 70 6.07
SZS1 Subtotal 83,764 2,883 627,898 714,544 4.42 85 5.85
SZN1 4615EL 326 326 2.70 93 4.24
4590EL 10,798 326 6,058 17,183 2.70 93 4.24
Sill Stope 4565EL 10,753 330 83,872 94,956 3.40 86 4.84
4540EL 9,397 342 68,025 77,764 3.89 68 5.02
4515EL 8,991 404 54,723 64,118 6.92 121 8.95
4490EL 8,087 376 72,655 81,118 5.42 107 7.21
4465EL 9,849 316 91,423 101,588 3.09 80 4.43
Sill Stope 4440EL 10,798 312 103,501 114,611 2.78 80 4.12
4415EL 10,753 316 102,051 113,120 2.71 84 4.11
4390EL 10,753 387 85,020 96,160 3.12 96 4.73
4365EL 8,268 350 45,597 54,215 2.49 87 3.93
SZN1 Subtotal 98,447 3,786 712,926 815,159 3.60 89 5.08
Total SZS1&N1 182,211 6,668 1,340,824 1,529,703 3.98 87 5.44

A summary of SZ2 Angela vein resource development and stoping tonnes is presented in Table
23.6.
Table 23.6: SZ2 Angela Vein Resource Development and Stoping Tonnes
Stope Devel. AuEq

SZS2 4615EL 10,843 333 3,148 14,324 3.15 56 4.09
4590EL 10,843 326 73,731 84,901 3.09 55 4.02
Sill Stope 4565EL 10,843 330 86,374 97,548 3.92 74 5.16
4540EL 10,391 342 125,363 136,097 4.45 86 5.89
4515EL 8,991 404 131,589 140,984 4.57 87 6.02
4490EL 8,042 376 111,498 119,916 4.22 87 5.67
4465EL 7,138 316 100,912 108,367 4.06 94 5.63
Sill Stope 4440EL 5,376 312 92,349 98,037 3.39 101 5.06
4415EL 9,578 316 107,592 117,486 3.44 116 5.37
4390EL 10,120 387 137,685 148,192 2.73 109 4.56
4365EL 11,024 350 98,970 110,344 2.55 120 4.55
4340EL 10,030 455 74,006 84,491 2.16 115 4.07
Sill Stope 4315EL 9,623 499 77,523 87,645 1.99 94 3.56
4290EL 4,021 440 40,400 44,861 1.98 87 3.44
SZS2 Subtotal 126,865 5,186 1,261,142 1,393,193 3.41 95 4.99
SZN2 4565EL 2,169 325 11,329 13,823 2.53 62 3.57
4540EL 5,286 347 16,714 22,348 2.29 67 3.40
4515EL 5,331 398 72,616 78,345 1.98 103 3.69
4490EL 9,352 369 124,376 134,097 1.68 131 3.86
4465EL 7,229 398 133,286 140,913 1.77 150 4.28
Sill Stope 4440EL 8,946 528 170,223 179,696 1.87 157 4.49
4415EL 8,403 371 181,586 190,360 2.10 138 4.40
4390EL 11,476 361 154,196 166,033 2.59 144 5.00
4365EL 11,431 414 151,607 163,452 2.69 149 5.17
4340EL 11,611 405 157,052 169,069 2.42 167 5.21
Sill Stope 4315EL 11,837 324 125,475 137,636 2.55 170 5.39
4290EL 11,521 313 87,362 99,196 1.91 127 4.02
4265EL 11,431 314 76,739 88,483 1.72 131 3.89
SZN2 Subtotal 116,022 4,866 1,462,562 1,583,450 2.16 144 4.56
Total SZS2&N2 242,888 10,051 2,723,704 2,976,643 2.75 121 4.76

A summary of NZ1 Angela vein resource development and stoping tonnes is presented in Table
23.7.
Table 23.7: NZ1 Angela Vein Resource Development and Stoping Tonnes
Stope Devel. AuEq

NZS1 4465EL 9,036 345 98 9,480 5.05 96 6.65
Sill Stope 4440EL 11,250 424 54,325 65,998 4.68 103 6.41
4415EL 11,069 337 60,904 72,310 3.67 93 5.22
4390EL 9,669 314 66,566 76,548 3.24 96 4.84
4365EL 8,223 310 91,007 99,540 3.11 112 4.97
4340EL 10,888 303 100,117 111,308 3.41 125 5.50
Sill Stope 4315EL 10,934 302 82,993 94,229 3.40 121 5.42
4290EL 10,934 302 66,763 77,999 5.90 160 8.56
4265EL 9,172 299 52,913 62,384 7.84 177 10.79
4240EL 7,138 304 37,318 44,761 4.88 114 6.79
4215EL 9,126 296 18,628 28,050 4.25 92 5.79
NZS1 Subtotal 107,438 3,537 631,632 742,608 4.26 120 6.27
NZN1 4440EL 4,066 292 18,110 22,468 6.04 136 8.31
4415EL 5,331 294 36,300 41,925 8.50 202 11.87
4390EL 11,205 303 49,200 60,707 9.15 231 12.99
4365EL 11,295 313 61,524 73,132 6.87 205 10.29
4340EL 11,340 313 76,569 88,223 6.90 228 10.70
Sill Stope 4315EL 11,431 318 88,993 100,741 8.13 288 12.92
4290EL 11,476 318 96,379 108,172 10.47 359 16.46
4265EL 11,521 314 104,770 116,605 9.77 338 15.40
4240EL 11,340 319 85,757 97,416 4.23 192 7.43
4215EL 7,184 305 58,118 65,606 4.92 185 8.00
NZN1 Subtotal 96,188 3,088 675,720 774,996 7.72 256 11.99
Total NZS1&N1 203,626 6,625 1,307,352 1,517,604 6.03 190 9.19

A summary of NZ2 Angela vein resource development and stoping tonnes is presented in Table
23.8.
Table 23.8: NZ2 Angela Vein Resource Development and Stoping Tonnes
Stope Devel. AuEq

NZS2 4465EL 5,376 436 5,813 5.61 172 8.48
Sill Stope 4440EL 9,352 511 28,351 38,214 5.61 172 8.48
4415EL 10,030 375 69,754 80,159 6.11 126 8.21
4390EL 10,888 375 89,495 100,758 6.20 128 8.34
4365EL 10,753 432 99,917 111,102 5.74 133 7.96
4340EL 10,798 393 176,205 187,396 2.39 139 4.71
Sill Stope 4315EL 10,821 325 195,565 206,710 2.37 168 5.17
4290EL 10,928 307 195,213 206,447 2.23 166 5.00
4265EL 8,765 309 148,326 157,400 2.58 193 5.79
4240EL 7,455 340 57,640 65,434 3.20 245 7.28
4215EL 5,557 333 23,222 29,112 2.98 237 6.93
NZS2 Subtotal 100,723 4,136 1,083,688 1,188,547 3.45 163 6.17
NZN2 4490EL 8,313 4,789 13,102 4.91 153 7.46
4465EL 9,804 344 72,349 82,497 3.96 134 6.19
Sill Stope 4440EL 11,024 421 75,880 87,324 3.95 137 6.24
4415EL 10,753 332 77,060 88,145 3.85 116 5.78
4390EL 10,301 305 68,703 79,309 3.85 132 6.06
4365EL 10,301 307 71,206 81,813 3.63 137 5.91
4340EL 10,748 321 79,849 90,918 3.55 160 6.22
Sill Stope 4315EL 10,691 304 70,647 81,641 3.11 177 6.06
4290EL 10,756 300 72,425 83,481 2.79 188 5.91
4265EL 10,786 299 51,119 62,204 2.90 182 5.94
4240EL 8,358 299 32,867 41,525 1.96 176 4.89
4215EL 4,970 305 20,217 25,492 1.94 140 4.27
NZN2 Subtotal 116,806 3,537 697,111 817,453 3.42 152 5.95
Total NZS2&N2 217,529 7,673 1,780,799 2,006,000 3.44 158 6.08
23.3 OTHER UNDERGROUND INFRASTRUCTURE
23.3.1 MINE DEWATERING
A small water collection sump will be located on each sublevel access cross-cut. The sumps
would be located near the point where the ramp and sublevel access crosscut intersect and will
be designed to prevent water entering the ramps, from the sublevels. For sumps located above
the main ramps elevations, overflow drill holes would be located near the entrance to each sump
to send water to the main water collection sumps, for settling, recirculation and/or discharge
from the mine. Sumps below the main ramps will be equipped with a pump to pump water to the
closest sump above the main ramps. All sublevel sumps will be periodically cleaned of settled
fines, using LHD’s.

MAIN SUMPS
The main dirty and clear water dewatering sumps will be located near the junction of the north
and south main ramps on the 4265 Level. The two dirty water sumps collect all water and settle
fines, with water overflowing from a dirty water sump into the clear water sump. A concrete dam
would be built at the opening of each dirty water sump and removable timber baffle walls
constructed, dividing each dirty water sump into three sections. Dirty water sumps are used one
at a time, with flow switched to the back-up sump when built-up sediment needs removing.
Slimes would be removed from the sumps by LHD’s and loaded into haul trucks for transport to
surface.
Clear water sumps, similar in size to the dirty water sumps but at a minus 20 % gradient, will be
utilized to treat and store clear water prior to recirculation within the mine or discharge. Water
would be pumped to recharge tanks for underground process water, as required, or discharged to
the water treatment facility on surface.
23.3.2 MAINTENANCE SHOP
A mobile equipment maintenance shop will be located on surface and used to perform all
preventative and breakdown maintenance on mobile mining equipment. The shop would consist
of two equipment repair bays, a welding bay and a wash bay. The repair bays would be equipped
with a 10 t capacity overhead bridge crane. The welding shop will be equipped with a 3 t
overhead monorail crane. An electrical room, meeting room and office(s) will be separate from
the main shop area. A parts warehouse will be located adjacent to the shop and store all materials
and parts in shelving to accommodate palletized components.
23.3.3 FUEL STATION
Fuel stations with fuel tanks mounted on rubber tire equipped undercarriages will be located in
each spiral ramp work area. Fire suppression will be installed at each tank storage location.
Fuelling areas will also house lubrication tanks and grease barrels.
23.3.4 REFUGE STATION
Main refuge stations will be located at each spiral ramp work area. Main refuge stations would
be 15 m long by 5.2 m wide and 4 m high. Each station will have a door in a concrete wall at one
end. The refuge station will include a main area for the mine workers containing wooden
benches and tables for the crew, hand washing station and other equipment and supplies. A
supervisor’s office will be separate at the back end of the refuge station. The refuge station will
be equipped with safety and rescue equipment such as a fire extinguisher, eyewash station, first
aid kit, emergency food and drink rations and stretcher. Compressed air and water lines will be
connected from the mines supply system to the inside of the refuge station. The refuge station
will also be fitted with an electric heater unit and will be vented through intake and exhaust
ventilation ducts to the outside.

23.3.5 EXPLOSIVES STORAGE
Palletized ANFO in bags and stick explosives in boxes will be delivered to explosives
magazines. Explosives will be delivered to the magazines by flatbed service vehicles and placed
on wooden shelving in the magazines. Explosives will be distributed from these magazines to
work places by service truck. The magazines will be centralized on each spiral ramp work area.
The powder magazine chambers will be sized to provide access for service trucks. The magazine
entrance will include a concrete wall with a main roll up door to allow access for mobile
equipment and a man door for people traffic. Both will remain closed except when explosives
are being placed into or removed from the magazine.
23.3.6 DETONATOR MAGAZINE
Detonator magazines will be located near the explosives magazines. The detonator magazine
will be 6 m deep, 3 m wide and 3 m high. The magazine will include a timber and screen wall
with an access door, providing for the inside length of the magazine to be 4 m. The magazine
will be equipped with suitable wooden shelving to allow stacking of detonator boxes on each
side.
23.3.7 MATERIALS HANDLING AND STORAGE AREA
A large storage area for mining consumables including pipe and fittings, ground support
materials, ventilation supplies, etc. will be developed in each spiral ramp work area. The storage
area will include shelving and low wooden racking to safely store articles. Materials and parts
will be palletized or placed in specially designed containers (for bulk materials and parts) for
sending underground via the main ramps. Service vehicles will transport the bulk materials to the
storage areas. Materials will be distributed from the storage areas to work place storage areas by
service vehicles.
23.3.8 WASHROOMS
Underground toilets will be installed near each refuge station. The washrooms will be equipped
with coat pegs, a cold water tank and a stainless steel sink. A cleaning hose and water connection
will also be provided, as will a hot water tank for the use of the personnel.
23.4 SERVICES
23.4.1 ELECTRICAL DISTRIBUTION
Power to the underground workings will be supplied via 500 MCM cables in the ramps. Power
distribution within the mine will be accomplished using unit substations, which will step down
the power from 15 kV to 5000 V for servicing main components. Local distribution will be
carried out using mine load centres of 1000 kVA capacity, which will step down the voltage
from 5000 V to 1000 V or 660 V, as required, for use with pumps, fans or other items.
Lighting panels and welding plugs will be serviced via low-capacity, local transformers and
panels, feeding work areas as required. The mine load centres are completely transportable,
allowing them to be re-used in new working areas, rather than being replaced as the work
advances.

23.4.2 COMPRESSED AIR
Compressed air will be supplied by two compressors located on surface. The compressors will
supply air to the main ramps in 203 mm compressed air pipelines located in the haulage drifts
and spiral ramps. Piping on the sublevels to stope access crosscuts will be 152 mm diameter.
Piping in the stopes will be 102 mm diameter.
23.4.3 SERVICE WATER
Water will be sent underground in 152 mm pipes located in the spiral ramps. This will feed main
102 mm diameter level distribution lines on the sublevels, which will distribute water to the
stope access crosscuts. Piping in the stope drifts and sills will also be 102 mm.
23.4.4 MINE COMMUNICATIONS AND CONTROL SYSTEMS
The mine will have a communications and data network to provide voice communications,
programmable logic controller (“PLC”) monitoring and control, data collection and
dissemination via an underground computer local area network (“LAN”) and video. A fibre optic
cable backbone and fibre wireless data and voice system will be installed.
A key component will be wireless PLC control of all underground ventilation fans to provide
starting and stopping of fans on timers or manually. This will ensure that only the fans required
are operating, optimizing power consumption. The system could also be setup to minimize
underground ventilation volumes by providing ventilation volumes based on air quality and not
brake horsepower of equipment. This could significantly reduce power consumption and help
reduce mining costs.
23.5 VENTILATION
The permanent ventilation system would be a push-pull system, with low pressure intake fans
and high pressure exhaust fans located on top of the intake and exhaust ventilation raises,
respectively, on surface. Auxiliary ventilation fans will be located on the sublevels to redirect
fresh air volumes to working areas, as required.
The intake fresh air ventilation raises will be raise bored 3 m in diameter. The intake raises will
be located in proximity to the spiral ramps and accessed from each level access. The exhaust
ventilation drop raises, located at the extremities of the ore zones being mined from each spiral
ramp, would be developed in legs, with dimensions of 2.4 m by 2.4 m.
23.6 GEOTECHNICAL
Using existing core logging information from exploration diamond drill holes rock quality
determinations were estimated. Based on rudimentary field work testing, completed by IMZ’s
geologist(s), it appears that the rock strength may be almost equal to the insitu tectonic stresses.
If correct this will affect the stoping mine design, specifically the stope dimensions and the 25 m
sublevel spacing, which will affect the complete mine design. P&E strongly recommend that
IMZ commence a full geotechnical study as soon as possible and expresses caution on the
potential mine design outcome of smaller sublevel intervals.

23.7 DEVELOPMENT AND PRODUCTION SCHEDULE
Initially the SZ1 and SZ2 stopes will be development and mining, as quickly as possible, until a
steady state production rate of 3,000 tpd is achieved. A steady state 3,000 tpd production rate
will be achieved after one year from the start of development or 6 months after the start of the
production period. Development and production of mineralized resources will also continue at a
steady state production rate of 3,000 tpd.
Development and production of the SZ1 and SZ2 stopes will continue until mineral production
from the NZ1 stopes will be required 26 months into the production period. Again development
and production of the SZ1, SZ2 and NZ1 stopes will continue until mineral production from the
NZ2 stopes will be required 32 months from the start of the production period. Development and
production of the SZ1, SZ2 and NZ1 stopes will cease 4.0, 7.2 and 7.3 years from the start of the
production period, respectively. The NZ2 stope will cease production 7.7 years from the start of
the production period (ie. life-of-mine (“LOM”)).
To meet production requirements approximately 10 to 12 longitudinal stopes (at different phases

of the mining cycle) will be required to be in operation simultaneously. Of the total, two stopes
will be in the drilling phase, four stopes mucking, two stopes blasting and the rest backfilling.
Mining of each block will commence at the bottom and proceed to the top of the zone. The
mining workforce will operate on two 12 hour shifts, 365 days per year.
The Inmaculada pre-production period will take 6 months. There will be no development or
production mineralization mined during the pre-production period. As stated above, the LOM
mineral production period is 7.7 years.
23.7.1 DEVELOPMENT SCHEDULE
Mine development will start with the South Main Ramp and the development of the SZ1 and
SZ2 stopes. As planned development headings are accessed, development will start. The mine
development rates used in the schedule are summarized in Table 23.9.
Table 23.9: Summary of Mine Development Advance Rates
Development Heading Size (mW x mH) Metres / Day

Main Ramps 5.0 x 5.0 6.5
Ramp Access X-Cuts 5.0 x 5.0 6.5
Spiral Ramps 5.0 x 5.0 7
Stope X-Cuts 4.0 x 4.5 8
Drifts 4.0 x 4.5 8
Exhaust / Slot Raises 2.4 x 2.4 3
Fresh Air Raises 3 m diameter 3
Ore Passes 2.4 x 2.4 3

A summary of the mine development schedule in waste is presented in Table 23.10.
Table 23.10: Summary of Mine Development Schedule in Waste
Total Year - Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Heading (m) 1 (m) (m) (m) (m) (m) (m) (m) (m)
Main Ramps and X-Cuts
South Ramp 982 982
North Ramp 1,781 1,401 380
Connection between Ramps 590 590
Access X-Cuts 179 38 119 22
SZ1
Spiral Ramp 1,744 1,153 591
Stope X-Cuts 614 277 185 153
Drift In Waste 382 264 88 30
Exhaust Raises 66 57 9
Fresh Air Raise 266 266
Ore Pass 172 98 74
SZ2
Spiral Ramp 2,713 281 2,433
Stope X-Cuts 910 261 317 112 112 108
Drift In Waste 839 195 159 60 184 188 53
Exhaust Raises 150 150
Ore Pass 274 75 50 50 100
NZ1
Spiral Ramp 1,938 182 1,756
Stope X-Cuts 546 343 161 42
Drift In Waste 606 349 156 101
Exhaust Raises 439 206 233
Ore Pass 147 42 51 54
NZ2
Spiral Ramp 2,132 2,124 8
Stope X-Cuts 688 225 173 199 46 46
Drift In Waste 560 210 55 105 190
Exhaust Raises 205 205
Ore Pass 261 52 52 78 26 52

A summary of the mine development schedule in mineralization is presented in Table 23.11.
Table 23.11: Summary of Mine Development Schedule in Mineralization
Total Year - Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Heading (m) 1 (m) (m) (m) (m) (m) (m) (m) (m)
SZ1
Drift 4,033 1,491 1,219 925 398
Slot Raise/Exhaust Raise 461 184 146 89 43
SZ2
Drift 5,376 1,290 1,679 803 861 545 198
Slot Raise/Exhaust Raise 695 153 214 105 117 70 37
NZ1
Drift 4,507 2,177 1,537 794
Slot Raise/Exhaust Raise 458 129 171 136 22
NZ2
Drift 4,815 519 1,212 1,336 717 1,032
Slot Raise/Exhaust Raise 531 65 136 108 79 143
23.7.2 PRODUCTION SCHEDULE
A total of 3,000 t of development and stope mineralization will be produced per day. The LOM
average is 328 tpd (11 %) coming from development and 2,672 tpd coming from stoping. Once
stope production has started there are periods of time when development in mineralization is not
required, as evident in Table 23.11 above. Thus stope drilling, blasting, mucking, ground support
and backfilling will be completed as required, in order to maintain a steady state 3,000 tpd.
The maximum production stoping rate in any stoping area is 300 tpd, based on productivities
Table 23.12: Summary of Stoping Productivities
Task tpd
Drilling 1,100
Blasting 2,500
Mucking 800
Backfill 625
Total / Stope Area 240
Total tpd 3,000
Stope Areas / Day 12.5
Stope Areas / Day Required (estimate) 10
tpd / Stoping Area 300

The Angela vein LOM stope production schedule is presented in Table 23.13.
Table 23.12: Angela Vein LOM Stope Production Schedule
Mining Area Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Total
SZ1 Tonnes (000's) 313.4 346.1 362.1 319.2 1,340.80
- g/t Au 3.78 4.25 4.31 3.57 4
- g/t Ag 86 95 89 79 87
- g/t AuEq 5.21 5.83 5.79 4.89 5.45
SZ2 Tonnes (000's) 310.6 606.8 423.4 482.4 355.8 281.8 226.5 36.4 2,723.70
- g/t Au 2.61 2.48 2.66 2.96 3.41 3.14 1.96 1.97 2.75
- g/t Ag 120 121 124 122 111 107 149 157 122
- g/t AuEq 4.61 4.5 4.72 5 5.25 4.92 4.46 4.5 4.77
NZ1 Tonnes (000's) 67.4 70.5 233.4 292.7 584.9 58.4 1,307.40
- g/t Au 5.56 5.9 5.46 5.87 6.28 7.45 6.04
- g/t Ag 171 186 172 183 202 242 192
- g/t AuEq 8.42 9 8.33 8.92 9.64 11.49 9.23
NZ2 Tonnes (000's) 29.6 54.8 381.2 487.1 226.5 601.6 1,780.80
- g/t Au 2.23 2.52 2.88 3.18 4.31 3.7 3.4
- g/t Ag 168 208 178 154 134 153 158
- g/t AuEq 5.03 5.99 5.85 5.76 6.53 6.25 6.04
Total Tonnes (000's) 624 953 882.5 926.9 970.4 1,061.60 1,037.90 696.4 7,152.70
- g/t Au 3.2 3.13 3.54 3.37 3.7 3.91 4.91 3.92 3.75
- g/t Ag 103 111 115 117 152 150 175 161 137
- g/t AuEq 4.91 4.98 5.45 5.33 6.23 6.41 7.83 6.6 6.03
23.8 MINING AND SERVICES MOBILE EQUIPMENT
Mining would require two longhole drills operating two shifts per day and four stope mucking
LHD’s. All personnel will, at the beginning and end of shift, enter and leave the mine in rubber
tired personnel carrier buses. During the shift, men will primarily travel into, out of and around
the mine in personnel vehicles such as Toyota or Hilux vehicles equipped with bench seats in the
truck bed for people to sit on. These will also be used by geology, engineering and mine staff to
travel to different work places in the mine. Materials and explosives will be transported
underground, in the ramps, in service vehicles similar to the personnel carriers, except the truck
bed will be empty and be provided with a drop tailgate to allow for materials to be loaded and
unloaded easily. Fuel would be transported underground in tanker cars towed by the service
vehicles and the tanks left in fuelling stations.
23.9 MINE SUPPORT FACILITIES
The explosives storage area for the mine will be located 500 m from mining and other facilities.
The magazines will be housed in metal shipping containers and located so they can be observed
by security located at the services site. The magazines will not be in direct line of sight of the
mine or other facilities to protect mine personnel, equipment and facilities.
The mine services site will include a maintenance shop, mine supervision, geology, engineering
and administration offices; power substations; warehouse; and water treatment facility. The
maintenance shop will be located at the services site.
The mine will be technically supported by the geology and engineering departments. The
geology department will be responsible for mapping and interpretation of mine development and
stopes, sampling of production drill holes, ore grade control and ore reserve estimations. There
will be a separate exploration group to undertake exploration work on the Property and to prove-
up new mineral resources for potential mining. The engineering department will be responsible
for mine planning, production scheduling, surveying, geotechnical design, and performance
statistics for the mine and any other technical requirements that support the operation.
23.10 MANPOWER
Manpower estimates for the mining operation total approximately 371 employees, including
supervision, engineering and geology staff. Table 23.13 summarizes the proposed mine
workforce. The mine maintenance department would total approximately 51 employees. These
are included in the totals of the mine operating personnel.

Table 23.13: Summary of Proposed Mine Workforce
Type Classification Complement

Drillers 36
Blasting 18
Mucking 12
Trucking 12
Cable Bolting 36
Services 24
Service 36
Grader 3
Construction 30
Mine Labour Mechanics 33
Electricians 12
Welder 6
Backfilling 24
Labourers 21
Yard 9
Tool Crib 6
Bit Sharpening 6
Supervisor 15
Subtotal Mine Labour 339
Mine Superintendent 1
Assistant Superintendent 1
Mine General Foreman 3
Chief Engineer 1
Mine Engineer/Rock Mechanics 1
Rock Mechanics Engineer 1
Mine Planner 2
Mine Staff Ventilation/Surveyor Technician 3
Surveyor Helper 3
Chief Geologist 1
Mine Geologist 2
Geological Technician 6
Mine Clerk 1
Mine Trainer/H&S Coordinator 6
Subtotal Mine Staff 32
Total Labour 371

24.0 INFRASTRUCTURE
24.1 SITE PLAN
An overall site plan is shown in Figure 24-1.
The configuration of the access portals, plant site and tailings management facility (“TMF”)
provides for a reasonably compact area of disturbance.
24.2 TAILINGS DISPOSAL AND WATER SUPPLY
On behalf of Minera Quellopata, Golder Associates Perú S.A. (“Golder”) carried out a scoping
level study for the site selection and preliminary design of a tailings disposal facility and a water
supply for the Inmaculada Property (Golder 2010).
Minera Quellopata suggested to Golder that the surface tailings disposal facility be designed for
10 Mt of tailings with a production rate of 1 Mt per year deposited as slurry.
A site visit by Golder was made to the project area from July 1 to 2, 2010 and existing data was
collected in order to identify potential locations for surface disposal of tailings. The data
included topographical mapping based on aerial survey, with a vertical contour interval of 5 m,
and some geological data based on maps and the exploration drilling.
As part of the work that was carried out, existing data were used to provide estimates of design
parameters and to provide preliminary indications of factors which could potentially affect the
development of the project. These studies included the following:
• hydrology – rainfall, evaporation and runoff;

• seismic risk – design accelerations; and
• environmental and social – factors potentially relevant to permitting.
Nine main alternative sites were identified, (Figure 24-2) each with sufficient capacity to contain
the anticipated quantity of tailings (Table 24.1). Of these sites, three were selected for further
consideration on the basis of various factors, including the ratio of the volume of the tailings to
that of the dam needed to impound them. The selected alternatives all have high values of this
ratio in comparison with the other six. They are all in the area to the east of the Angela vein
deposit. This area is part of the buffer area around a national landscape reserve, but this is not
considered to be necessarily a hindrance to the development of the Property.
The preferred site was selected primarily on the basis of evaluations made of the likely balance
of water quantities for tailings basins constructed and operated in the two alternative areas.
These areas were those closest to the probable concentrator plant site. Of the two alternatives
under consideration the preferred one has by far the smaller catchment area (Figure 24-3).

Figure 24-1: Inmaculada Site Plan

Figure 24-2: Tailings Disposal Facility Possible Site Locations

Table 24.1: Comparison of Alternative Tailings Disposal Sites

Figure 24-3: Sub Basin Areas – Alternative 6 and Water Reservoir

The water balance calculations made for the preferred tailings disposal site showed that in the
early stages of operation there is likely to be a requirement for additional water in the tailings
circuit. In the later stages of operation, a water surplus is expected. A water supply reservoir
using part of the large catchment area in the adjacent alternative site was designed to meet the
requirement for tailings circuit make-up water, and for other uses for fresh water. For conditions
in which there is surplus water the intention is that it should be stored within the tailings
impoundment, and the dam would have sufficient freeboard to allow this to be done safely.
The testing of one sample from the exploration drilling did not show significant potential for
adverse geochemical effects. As this result is not necessarily representative of the future tailings,
it was assumed for this study that the tailings could be acid-generating, and the conceptual
design used for the dams is geochemically stable rockfill with a geomembrane upstream seal.
It is envisaged that the tailings would be deposited by spigotting from the dam. The pond for
reclaim of the free water to the concentrator plant would form in the area of the basin distant
from the dam, which is closer to the plant site. Reclaim water is assumed to be returned by
pumps supported by floats.
It is assumed that a similar pumping system would be used to supply water from the freshwater
reservoir.
24.3 POWER SUPPLY
IMZ contracted Cosapi Ingenieria y Construccion (“Cosapi”) of Perú to review the project power
supply options. It became apparent quite early during the Preliminary Economic Assessment that
any definitive answers on where power could be sourced from would not be available to meet the
IMZ timeline for completion of the scoping study. Therefore IMZ asked Cosapi to provide a
‘conservative’ estimate of what Cosapi believe it will cost to provide power to Inmaculada,
while at the same time, continuing to gather the information required for a more definitive
answer and corresponding cost estimate for future study work.
24.3.1 ALTERNATIVES
Cosapi identified three power companies that have transmission lines within a reasonable
distance of the project. These are:
• Sociedad Electrica del Sur Oeste (Arequipa)

• Electro Dunas (Ica)
• Electro Sur Este (Cusco)
The power access point for Sociedad Electrica del Sur Oeste is the furthest from the project, at
an estimated 100 km (straight line), therefore the decision was made to do a conceptual cost
estimate on this option, based on nothing more than the straight line distance and a correction
factor (to allow for the hills and valleys and curves that the line route will inevitably traverse).
24.3.2 ONGOING WORK
Cosapi work is ongoing in order to determine a definitive power source for the project.

24.4 WASTE ROCK DISPOSAL
The two mine portals (North and South) and associated ramp development will generate 1.04 Mt
of waste rock during the mine life. This waste will be placed on two storage dumps in close
proximity to their respective source portals (Figure 24-1). The dump slopes will be
approximately 35 degrees. The estimated volume of the dumps is 317,000 m3 for the North
dump and 305,600 m3 for the South dump
24.5 SITE WATER MANAGEMENT
A freshwater supply will be required not only for potable water and possibly for reagent mixing
in the plant, but also to enable the plant to be operated in the early years, when the water balance
of the tailings facility is expected to be negative. Based on the water deficit estimated for a 25
year return period dry year a volume of about 300,000 m3 would be required.
It is proposed to make use of a portion of the catchment of TMF Alternative 7 for the freshwater
reservoir. This part will be sufficient to supply about 350,000 m3. This design volume takes
account of the deficit shown by the flow model of about 300,000 m3, of the uncertainties in the
relevant parameters, and of the other uses for the water. The proposed rockfill dam construction
is similar to that proposed for the impoundment for slurry tailings.
For the delivery of the water to the plant area a floating pump is assumed with a 6 inch diameter
steel pipe delivery. This diameter is based on the monthly flow rate of about 25,000 m3 shown in
the flow model, factored by 1.5.
24.6 ANCILLIARY FACILITIES
24.6.1 ROADS
24.6.1.1 OVERVIEW
IMZ assigned the conceptual study for the access road to the Inmaculada Property to Cosapi. The
mine is located in the provinces of Paucar del Sara Sara and Parinacochas, department of
Ayacucho, Perú.
The scope of Cosapi’s study included the evaluation of four alternate routes that were indentified
after field visits and the recommendation of the most suitable access road. The study evaluated
costs for road improvement and new road construction for comparison purposes.
At present, access to the Inmaculada Property begins at the inter-oceanic highway in the town of
Izcahuaca, running south to the turn-off to the Pallancata Mine, the continuing to Hochschild’s
Selene operation.
The aim is to define an access road starting from the Pallancata Mine directly to the Inmaculada
Property. This will allow for the transport of material, equipment and personnel to and from the
mine without using the national road network or roads serving other mines.
Cosapi state that construction of a compacted gravel road is adequate to provide access to the
Inmaculada Property.

24.6.1.2 ALTERNATE ROUTES EVALAUTION
PRESENT SITUATION
As stated previously, access to the Inmaculada Property begins from the inter-oceanic highway
in the town of Izcahuaca, running south to the Pallancata Mine turn-off, on compacted gravel
road, covering a length of 20.2 km. This section is not considered for comparison of the routes.
From the turn-off for the Pallancata Mine, the road continues to the turn-off to the Selene
operation, another 22.7 km of compacted gravel road.
From the detour at the Selene Mine, the road continues until reaching the Inmaculada Property
on a compacted gravel road of 99.3 km in length.
FIELD WORK PERFORMED
Field work was completed by Cosapi in order to define alternative routes to access the mine. The
following field work was carried out by Cosapi:
• Following proposed routes with GPS navigation.

• Determination of mandatory passes (gorges, breaks, etc.).
• Identification of critical areas on existing routes and new sections.
• Evaluation of variants for improvement of existing route.
• Photographic registry.
SUMMARY OF PROPOSED ALTERNATE ROUTES
All four alternatives start from the turn-off to the Pallancata Mine:
Table 24.2: Route Alternatives to Access the Inmaculada Property
Alternative New road Existing Road Total Length (km)

No 01 No Yes 122.0
o
N 02 Yes (33.9 km) Uses 39.6 km 73.5
No 03 Yes (42.1 km) Uses 19.1 km 61.2
o
N 04 Yes (60.6 km) Uses 14.7 km 75.3
Figures 24-4 and 24-5 and Table 24.3 illustrate the alternate roads in consideration.

Figure 24-4: Sections For Each Alternate Route
Figure 24-5: Sections For Each Alternate Route With Topography

Table 24.3: Road Characteristics for Each Alternate Route
DETAILS OF ALTERNATE ROUTES
ALTERNATIVE N° 01 - L = 122.00 km
This will consist of the following work:
• Improvement of road; sections 1A, 1B, 1C and 1D; 122.00 km.
ALTERNATIVE N° 02 – L = 73.50 km
• This will consist of the following work:
• Improvement of road; sections 2A and 2B; 13.10 km.
• New construction, sections 2C and 2D, 34.00 km.
• Improvement of road, sections 1C and 1D, 26.40 km.
• Bridge of 30 m.

ALTERNATIVE N° 03 – L = 61.20 km
• Improvement of road, sections 2A and 2B, 13.10 km.
• New construction, sections 2C and 3A, 42.1 km.
• Improvement of road, section 1D, 6.00 km.
• 35 m bridge.
ALTERNATIVE N 04 – L = 75.30 km
• Improvement of road, section 2A, 8.7 km.
• New construction, section 4A, 60.6 km.
• Improvement of road, section 1D, 6.00 km.
• 35 m bridge.
• Pontoons in three locations, of 8 m, 5 m and 5 m in length respectively.
24.6.1.3 TECHNICAL ISSUES RELATED TO ROAD DESIGN
The road is classified as a rural road that will join a mine development to the national road
network. All alternatives routes run through lands with undulating relief, moderate and high
steep hillside locations.
All alternative routes have a portion of the road located in the Suni region (3,500 to 4,000 m asl)
which has a very frigid climate and strong precipitation and another portion located in the Puna
region (4,000 to 4,800 m asl) which also has a very frigid climate, intense precipitation and
periodically hail.
For this level of evaluation, the road is estimated with a 10 year life expectancy and in
accordance with standard guidelines and road classification that the operating speed for vehicles
will be 30 km/h.
In accordance with National Standards, the proposed road will have 6.0 m width with 0.5 m
berms at each side for two way traffic operation. The layout should incorporate a radius of 30 m
minimum for horizontal curves.
The road surface will be compacted crushed rock-type surface.
24.6.1.4 DISCUSSION
• Route Selection: In evaluating the distances of alternative # 3 (61.2 km) over alternative
# 2 (73.5 km), alternative # 3 is favoured based on the shorter travel distance of about
20 % that will reduce operating time of the transportation fleet as well as lower cost for
road maintenance. Alternative # 3, with a 16 weeks construction time, has the shorter
period for implementation of all of the alternatives. Routes under alternatives #1 and # 4
are less attractive at this time because of the distance to be travelled (122 km for alternate
#1) and the highest capital investment for alternative # 4 of $US30.8 million in
comparison with $US21.1 million for the recommended alternative. IMZ did not accept
the recommendation of Cosapi, instead choosing to upgrade the existing road. IMZ feels
that the additional capital, plus the community issues (not within the scope of Cosapi to
consider) involved with creating a completely new road are not justified at this time.

• Construction Season: Based on Cosapi’s experience with similar work, Cosapi
recommended beginning the construction of the new road between the months of April
and May, which is the end of the rainy season.
• Construction Material: Cosapi recommended a detailed field study of quarries to locate

suitable road construction material.
• Road Design: According to Cosapi´s experience in roads with similar functions and
climates, Cosapi propose using a compacted crushed rock-type without asphalt cover.
Also, based on their experience in roads with similar functions and climates, Cosapi
proposed to use a double track 6.0 m wide road with two berms of 0.5 m to each side of
the road, which would agree Peruvian National Standards. According to reference from
the National Standard, the rural road classification corresponds to a 3rd Class type road.
This represents a low traffic volume in hilly areas and a corresponding speed limit of 30
km/h. With this speed limit, it was determined that the minimum radius of horizontal
curves must be 30.0 m.
OTHER CONSIDERATIONS
Cosapi recommend undertaking complementary studies related to the road construction

including but not limited to:
• Geology, soil mechanics, and road material

• Traffic study
• Hydrology, hydraulics and drainage
• Safety and road signalling
• Environmental Impact Study
Currently, Perú is in a ‘boom’ of investments in infrastructure projects and the contractors will
likely seek high margins in their bids. This should be taken into consideration when budgeting
for this investment.
24.6.2 BUILDINGS
Various buildings will be constructed as part of the project. In general terms these comprise:
Mine-Related Structures
• Mine offices
• Mine maintenance shop
• Mine dry
• Explosives magazines
• Ammonium nitrate storage
Process-Related Structures
• Offices
• Process plant
• Laboratory
• Process plant dry

G&A
• Administration building
• Security and first aid
• Warehouse
• Cold storage area
• Main sub-station
Accommodation
• Sleeping quarters
• Recreation building
• Cafeteria
Some of the structures will be integrated where functionality and cost savings can be
demonstrated. This investigation will be carried out at a more detailed level of engineering.
24.6.3 WASTE DISPOSAL
Hazardous wastes will be disposed off-site using licensed waste management contractors in an
approved manner consistent with the requirements of hazardous waste management regulations.
A landfill site will be constructed and permitted under prevailing Peruvian environmental
protection regulations.
Sewage and grey water will be treated by means of septic field bed systems to be constructed at
the mine and mill facilities.

25.0 ENVIRONMENT CONSIDERATIONS
The Inmaculada Property is located in the Oyolo district of the provinces of Parinacochas and
Paucar del Sara Sara situated in the southeastern corner of the Ayacucho Department of Perú in a
mountainous area with local elevations in the 3,900 to 5,000 m asl range. The local sub-
watersheds drain either west or east and ultimately to the Pacific Ocean by way of a series of
rivers including the Pacapausa River, along which several area settlements are located. The site
is accessible using a series of roads that pass through some of the local communities. The
vegetation in the project area is tundra-like with few trees. Llamas and alpacas graze in the
grassland areas.
The scope of the Inmaculada project as currently envisaged includes the development of a
1 Mtpa underground mine, an ore processing plant, a mine rock stockpile, a mill tailings
management area, and infrastructure including power line; office buildings; shops and
warehouses; storage areas, and parking areas. The envisaged project would mine and process a
gold / silver ore to produce a flotation concentrate that would be transported off-site for further
processing and / or sale to a smelter.
The proposed mill process utilizes flotation only and does not require the use of cyanide. It is
currently projected that approximately 3 Mt of tailings would be disposed in the underground
mine as backfill and that about 5 Mt of tailings would be disposed in a surface tmf. The tailings
management area would be an engineered facility that takes the possibilities of earthquake and
severe precipitation events and other factors into consideration in its design.
The mill process water would be obtained by collecting drainage from selected local sub-
watersheds. The mill would also use water recycled from the tailings management area and the
mine. The project would be progressively rehabilitated with final rehabilitation and site clean-up
at the end of the mine life.
Perú has a well established environmental assessment and permitting process for mining
projects. The process requires that an environmental and social impact assessment (“ESIA”) be
developed for the project in accordance with Peruvian legislation. Work to date at the
Inmaculada Property includes initial environmental and social baseline development, the
preparation of a semi-detailed type ESIA (Estudio de Impacto Ambiental semidetallado
Categoria 2) dated July 2008 and a second modification (Segunda Modificatoria EIAs) dated
February 2010.
Once the ESIA for the project is completed, it would be submitted to the Ministry of Energy and
Mines (“MINEM”) and thereafter reviewed by the Environmental Affairs General Directorate
and at least three other cooperating agencies.
A concession to operate would be issued following acceptance and approval of the final ESIA.
The mine operator would receive permission to operate after successful project construction.
Public consultation is a valued and important part of the ESIA in Perú and permitting process
and activities in this area have commenced. Public input at this stage of the project helps provide
the basis for public engagement and consultation during the project development and operation
stages.

A technical study was undertaken to identify potential tailings management area sites on the
Property. Three of the sites are currently of interest. The study also identified that the proximity
of the project to the buffer zone of the Cotahuasi landscape reserve will need to be further
considered in subsequent technical studies and in consultations with the authorities. A
preliminary review of social and community aspects has also been completed. Claims made by
the community of Huancute were identified as a potential project issue. Social engagement
specialists employed by IMZ are dealing with the Huancute community issue at this time.
The mining and ore processing approaches proposed for the project take environmental
protection and the health and safety into consideration. As an example, initial testing indicates
that the mine rock and tailings may not be acid generating but this will continue to be assessed
through additional specialized testing and expert review. Similarly, the capital and operating cost
estimates include costs for environmental, health and safety equipment, the responsible disposal
of wastes, worker training, etc. It is expected that the technical and environmental, health and
safety aspects of the project will be further assessed and refined during public consultation and
in a feasibility study for the Property. Based on P&E's current understanding of the situation,
there does not appear to be any insurmountable obstacles to the successful implementation of the
Inmaculada project.

26.0 CAPITAL COSTS
26.1 POWER SUPPLY
26.1.1 CONCEPTUAL COST ESTIMATE
The power access point for Sociedad Electrica del Sur Oeste is the furthest from the project, at
an estimated 100 km (straight line), therefore the decision was made to do a conceptual cost
estimate on this option, based on nothing more than the straight line distance and a correction
factor (to allow for the hills and valleys and curves that the line route will inevitably traverse).
The contemplated transmission line will be 60 kV and will need a new substation at the mine and
an upgrade to the substation at the source (power company take-off point). To arrive at those
costs, Cosapi used their experience in building transmission lines in these types of terrains in
Peru.
Table 26.1: Cosapi Conceptual Costs for the Project Power Supply
Description Units Price US$ Quantity Total

Transmission line 60kV -
Arequipa - Inmaculada km $130,000 100 $13,000,000
Substation - Inmaculada Units $3,000,000 1 $3,000,000
Substation Arequipa Units $1,000,000 1 $1,000,000
Correction Factor 0.5 $8,500,000
Total $25,500,000
IMZ used the conceptual numbers presented in Table 26.1 for the Preliminary Economic
Assessment, assigning $17 million to initial capital and the $8.5 million ‘correction factor’ to
project contingency.
26.2 ROADS
26.2.1 COST ESTIMATE AND COMPARISON
The scope of this study included the evaluation of four alternate routes that were indentified after
field visits and the recommendation of the most suitable access road. This study evaluated costs
for road improvement and new road construction for comparison purposes.
In order to define the cost of the mine access road Cosapi used references based on the previous
expertise in the planning and construction of new roads in high altitude, equivalent zone climate
and remote distances as well as expertise in definition of road infrastructure.
Three unitary cost estimates per kilometre of road were defined for use in the estimates for
comparative evaluation. A summary of these estimates is presented in Table 26.2.

Table 26.2: Unitary Cost Estimates Per Kilometre of Road
New Construction - Minor Requirement For Infrastructure Work

Description Cost/km (US$)
Preliminary Works 37,800
Earth Moving 210,000
Paving 52,500
Works And Drainage 105,000
Signals And Road Safety 4,200
Environment Protection 10,500
Total 420,000
New Construction - Medium Requirements Of Infrastructure Work
Preliminary Works 37,800
Earth Moving 262,000
Paving 52,500
Signals And Road Safety 4,200
Environment Protection 10,500
Total 524,000
Road Improvement
Preliminary Works 875
Earth Moving 14,000
Paving 9,275
Signals And Road Safety 350
Environment Protection 350
Total 35,000
In each case, the initial investment includes the direct cost for new construction costs,
infrastructure and maintenance. Indirect cost has been allocated as a percentage of the unit price
and includes 5 % for development of preliminary and final engineering and 3 % the supervision
during the construction.
The cost summary for each alternative road is outlined in Table 26.3 as follows:
Table 26.3: Cost Summary for Alternate Roads
Alternative Capital Investment (US $)

A#1 $4,611,600.00
A#2 $17,870,200.00
A#3 $21,000,700.00
A#4 $30,766,500.00

The schedule for each alternative road is outlined in Table 26.4 as follows.
Table 26.4: Summary for Alternate Road Construction Schedules
Alternative Implementation time (months)

A#1 20
A#2 18
A#3 16
A#4 22
Alternative Number 1 route was selected due to its lowest capital cost.
26.3 MINE CAPITAL COSTS
The capital cost estimates are based on budget pricing from suppliers, consultants, contractors
and a review of other similar projects in Perú and worldwide. Smaller equipment and facilities
component costs were factored based on industry norms for the type of facility being constructed
and, where possible, adjusted to reflect local conditions.
Construction and installation labour rates are based on contractor costs in the region, and
country, for similar types of work. Where costs were either not available or irrelevant, costs from
other similar projects in Perú or worldwide were used. The rates used include all cost and profit
components payable to contractors.
All cost estimates are in 2010 constant US dollars.

A summary of mine development unit capital costs is presented in Table 26.5.
Table 26.5: Mine Development Unit Capital Costs
Description $US/metre
5 mW X 5 mH Ramp & Lateral Development
Consumables, Materials & Maintenance Parts $1,150
Equipment Ammortization $340
Labour, Supervision & Overhead $1,500
Total $2,990
4 mW X 4.5 mH Lateral Development
Consumables, Materials & Maintenance Parts $930
Total $2,430
2.4 m X 2.4 m Drop Raise
Consumables, Materials & Maintenance Parts $400
Total $1,480
3 m Dia. Vent Raise
Boring Consumables $1,400
Labour, Supervision & Overhead $700
Total $2,270
26.3.1 PRE-PRODUCTION CAPITAL
The underground mine pre-production capital expenditures occur during the last 18 months of
the pre-production period. The mine equipment and facilities capital expenditures are shown in
Table 26.6 and total US$20.4 million (including a 20 % contingency).
Mine preproduction development capital expenditures total US$10.2 million, as shown in

Table 26.7 and occur in the last six months of the pre-production period.

Table 26.6: Underground Mine Equipment and Facilities Capital Cost Summary
Unit Cost Total Cost

Description Quantity Units (000's $US) (000's $US)
UG Mining Equipment:
Longhole drill 2 each 750.0 1,500
LHD 6 yd 4 each 900.0 3,600
LHD 3.5 yd 1 each 550.0 550
40 tonne Truck 4 each 1,250.0 5,000
Scissor Cable Bolter 2 each 450.0 900
Grader 1 each 390.0 390
Service Truck 2 each 50.0 100
Personnel Carrier 2 each 40.0 80
Stoper 15 each 4.3 65
Jackleg 5 each 4.3 22
Underground Auxiliary Fan (50 hp) 10 each 20.0 200
Subtotal UG Equipment 12,406
UG Facilities:
Pumping Station 2 each 75.0 150
Refuge Station 5 each 70.0 350
Satellite Fuel Station 4 each 5.0 20
Explosives Magazine 3 each 5.0 15
Detonators Magazine 3 each 5.0 15
Breakdown Shop 1 each 50.0 50
Backfill Distribution 1 L.S. 250.0 250
Electrical Distribution 1 L.S. 300.0 300
Subtotal UG Facilities 1,150
Mine Surface Facilities:
Surface Fans (150,000 cfm) 1 L.S. 1,000.0 1,000
Compressors (5000 cfm) 2 each 175.0 350
Power Distribution 1 L.S. 200.0 200
Surface Explosives Magazines 1 lot 15.0 15
Laydown Yard 1 each 15.0 15
Mine Rescue 1 L.S. 120.0 120
Maintenance Shop 1 each 500.0 500
Shop Tools 1 each 80.0 80
Mine Lamps 275 each 1.0 275
Mine Small Tools 1 L.S. 50.0 50
Subtotal Mine Surface Facilities 2,605
Surface Infrastructure:
Portals to Mill Roads 5 km 77.0 385
Working Clothes/Safety Equipment 380 each 0.1 38
Mine IT Computers 1 L.S. 300.0 300
Mine Office & Technical Equipment 1 L.S. 80.0 80
Subtotal Surface Infrastructure 803
Total 16,964
Contingency (20 %) 3,393
Grand Total Capital 20,357

Table 26.7: Underground Pre-production Development Capital Cost Summary
Location $US (000,000’s)

Main Ramps and X-Cuts 4.2
SZ1 4.8
SZ2 1.2
NZ1
NZ2
Total Development in Waste 10.2
26.3.2 SUSTAINING CAPITAL
All mine sustaining capital is mine development. A summary of mine development sustaining
capital is presented in Table 26.8. There US$92.8 million in mine sustaining capital
development.
Table 26.8: Underground Mine Development Sustaining Capital Cost Summary (US$M)
Location Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Development in Waste:
Main Ramps and X-Cuts 7.5 0 4.5 3
SZ1 5.1 3.8 0.8 0.6
SZ2 13 9.3 1.3 0.5 1 0.9 0
NZ1 10.5 0 0.5 8.3 0.8 0.8 0
NZ2 10.6 0 0 8.5 0.7 1.2 0.2 0.1
Total Development in
Waste 46.7 13.1 7.2 20.8 2.5 2.8 0.2 0.1
Development in Mineralization
SZ1 7.3 3.9 2.4 1 0
SZ2 9.2 3.4 2.1 2.3 1.4 0
NZ1 6.1 4 2.1 0
NZ2 8.9 3.1 3.4 1.9 0.5
Total Development in
Mineral 46 7.3 7.6 11.3 10.4 7 1.9 0.6
Grand Total 92.8 20.4 14.7 32.1 13 9.8 2 0.8
The total mine development expenditures over the life of the mine is estimated to be
US$102.9 million.
26.4 PROCESS PLANT CAPITAL COSTS
26.4.1 BASES
IMZ developed conceptual capital cost estimates for the process plant and associated ancillary
facilities and summarized in Table 26.9. Costs are stated in third quarter 2010 US Dollars.

The capital cost estimates were reviewed with IMZ by P&E and checked against a control
estimate constructed for the purpose. The estimates are considered appropriate for the planned
facility and this scoping level study.
Accuracy rated at +/- 30 %, typical for scoping studies of this nature.
The majority of the cost estimate within the process plant areas was equipment-factored based on
new equipment pricing. Direct field cost of prime accounts, concrete, structural steel, piping etc.
were disbursed into labour, materials and subcontract columns for each area-facility based on
historical information from final cost reports and detailed estimates of similar projects.
Budgetary vendor quotations were obtained for approximately 70 % of the total cost of
permanent equipment and supplemented with in-house pricing information from similar projects.
Costs for the ancillary buildings were estimated on a dollar per square meter basis for facilities
from similar projects. Appropriate allowances have been included for fittings and furnishings,
equipment, machinery and tools.
Costs associated with the mine, access road, power transmission line, fresh water collection
system and tailings dam are estimated separately by others and are excluded from the following
summary.
Buenaventura Ingenieros S.A. (“BISA”) a Peruvian engineering and construction contractor base
in Lima, Perú, was retained to produce check estimates based on flowsheets, design criteria,
equipment lists and layout drawings provided by IMZ. After detailed review the estimates
reconciled to within ten percent. For the purposes of this study it was decided to use the IMZ
costs, the higher and therefore more conservative of the two.
A contingency allowance of 25 % is added, based on total direct plus indirect costs.

26.4.2 CAPITAL COST SUMMARY
Process plant capital costs are summarized in Table 26.9.
Table 26.9: Process Plant and Ancillary Facilities Capital Cost Summary
Description $US (000s)

Direct Costs:
Direct Field Costs
General Site work 1,418
Process Plant 34,263
Ancillary Facilities 9,691
Utilities 2,290
Freight, Spare Parts, Construction Equipment Rental 8,478
Sub-total Direct Field Costs 56,140
Indirect Costs:
Engineering and Procurement 5,614
Construction Management and Overhead 5,614
Construction Camp 2,270
Start-up and Initial Spares 1,750
Sub-Total Indirect Field Costs 15,248
Total Costs 71,388
Contingency (25 %) 17,847
Total Project Cost 89,235
26.5 TAILINGS DISPOSAL AND WATER SUPPLY
An estimate was made of the capital expenditure (“Capex”) for the tailings disposal facility and
the freshwater supply system. This is the amount which would be required in the period prior to
the start up of the concentrator plant. The estimate was based on construction quantities derived
from the conceptual designs and the available topographical data, and on unit rates for
construction based on information from recent similar projects. The estimated Capex of
US$18 million includes contractor’s indirect costs and allowances for engineering, QA/QC and a
contingency.
The starter dam covered by the Capex would need to be raised after 3 years as the basin fills with
tailings (Figure 26-1). The sustaining capital required for the annual raises up to 10 years is
estimated to total close to US$9.8 million (Table 26.10). When discounted at 12 % its net present
value (“NPV”) is about US$4.8 million. It should be noted that if the quantity of tailings turns
out to be less than that used in the study, for example if more is placed underground and the
assumed contingency amount does not materialize, then less raises of the dam will be required. If
the final total were only 4 Mt then only one raise above the starter dam would be required.

Figure 26-1: Sections A-A’ and B-B’ of the Tailings Facility

Table 26.10: Capital Cost Estimate for Alternative 6 – Facility for Slurry Tailings Disposal and Make-Up Water Reservoir

26.6 MISCELLANEOUS CAPITAL COSTS
A contingency of 50 % of total power supply capital cost, 25 % of the total process plant, 25 %
of the direct tailings disposal and water supply, 20 % of the total mine equipment and facilities
totals US$32.9 million. A summary of these costs is presented in Table 26.11.
Table 26.11: Summary of Capital Contingency Costs
Item $US(000's)
Power Supply 8,500
Process Plant 17,847
Tailing Disposal & Water Supply 3,163
Mine Equipment & Facilities 3,393
Total 32,903
Working capital of US$8.8 million has been estimated be 25 % Year 1 cash operating costs.
Closure and savage capital cost of US$8.4 million has been estimated be 5 % of the initial capital
cost.
26.7 TOTAL PROJECT
The LOM total capital, less working capital, is US$270 million. A summary of capital
expenditure on a yearly basis is presented in Table 26.12. Pre-production capital totals
US$168 million. Sustaining capital totals US$110 million. Working capital is re-captured as a
negative cash operating cost in Year 8.

Table 26.12: Project Capital Cost Summary (US$M)
Item Year -2 Year -1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Total
Power Transmission Line 5.1 11.9 17
Access road 4.6 4.6
Mine Development 0 10.2 20.4 14.7 32.1 13 9.8 2 0.8 102.9
Mine
Infrastructure/Equipment. 5.1 11.9 17
Mill and Ancillary facilities 21.4 50 71.4
Tailings and Fresh Water
Supply 4.5 10.4 0.5 15.4
Subtotal 40.7 94.3 20.4 14.7 32.7 13 9.8 2 0.8 228.3
Contingency 32.9 32.9
Closure and Salvage 8.4 8.4
Working Capital 8.8 8.8
Total Capital 40.7 127.2 29.1 14.7 32.7 13 9.8 2 0.8 8.4 278.3
Note: Table 26.12 represents 100 % of the Property. IMZ will hold 40 % of the Property (60 % Hochschild) as outlined in framework agreement announced

27.0 OPERATING COST ESTIMATE
All costs have been estimated in constant 2010 US dollars.
27.1 MINE OPERATING COSTS
A summary of mine operating consumables, materials and maintenance parts costs is presented
in Table 27.1. The costs for consumables are based on prices provided by suppliers and first
principle consumption quantities.
Table 27.1: Summary of Mine Operating Consumables, Materials and Maintenance Parts
Costs
Consumables, Materials & Maint. Parts (CMMP) $US/t

Drilling 0.64
Blasting 2.82
Ground Support Cables 1.10
Ore Mucking Operating 0.70
Ore Mucking Maintenance Parts 1.00
Pipe & Accessories 0.07
Stope Fan 0.17
Backfill 3.00
Total CMMP 9.49

A summary of mine services and power costs is presented in Table 27.2. The cost of power is
based on rates currently charged in Peru to mines for grid power supplied.
Table 27.2: Summary of Mine Services and Power Costs
Description Yearly Cost ($US) $US/t

Support Equipment:
Service Trucks $1,035,000
Grader $78,000
Flat Bed Truck $259,000
Personnel Vehicles (Hilux) $160,000
Man carriers $666,000
Total Service Vehicles Cost $2,198,000 2.0
Power:
Compressors $177,000
Surface Fans $2,365,000
U/G Fans $394,000
Pumping & Misc. $123,000
Total Power Cost $3,059,000 2.8
Other Services:
Safety, Mine Rescue & Training $50,000
Surface Dry/Technical Office $100,000
Total Other Services $150,000 0.1
Total Services and Power $5,407,000 4.9
Mine labour costs are based on the manpower schedules presented for each department and the
associated labour costs (based on average Peruvian rates for miners including all fringe benefits
costs). A summary of mine labour cost is presented in Table 27.3. The costs include a benefits
component ranging from 30-45 %.

Table 27.3: Summary of Mine Labour Costs
Yearly
Cost Total Yearly
Labour Category ($US) Complement Cost ($US) $US/t
Drillers $18,000 36 648,000
Blasters $18,000 18 324,000
Muckers $18,000 12 216,000
Truckers $18,000 12 216,000
Cable Bolters $18,000 36 648,000
Service Labour $18,000 60 1,080,000
Grader Operators $18,000 3 54,000
Construction Labour $18,000 30 540,000
Mine Mechanics $18,000 33 594,000
Labour Electricians $18,000 12 216,000
Welders $18,000 6 108,000
Backfilling Labour $18,000 24 432,000
Labourers $14,000 21 294,000
Yard Labour $14,000 9 126,000
Tool Crib Labour $14,000 6 84,000
Bit Sharpening Labour $14,000 6 84,000
Supervisors $30,000 15 450,000
Total Mine labour 339 6,114,000 5.6
Mine Superintendent $200,000 1 200,000
Assistant Superintendent $75,000 1 75,000
Mine General Foremen $60,000 3 180,000
Chief Engineer $50,000 1 50,000
Mine Engineer/Rock Mechanics $30,000 1 30,000
Rock Mechanics Engineer $30,000 1 30,000
Mine Planners $20,000 2 40,000
Mine
Staff Ventilation/Surveyor Technicians $20,000 3 60,000
Surveyor Helpers $20,000 3 60,000
Chief Geologist $50,000 1 50,000
Mine Geologists $30,000 2 60,000
Geological Technicians $20,000 6 120,000
Mine Clerk $20,000 1 20,000
Mine Trainer/H&S Coordinators $30,000 6 180,000
Total Mine Staff 32 1,155,000 1.1
Total Labour 371 7,269,000 6.7

The estimated total mine operating cost is US$21.10/t. A summary of this total mine operating
costs is presented in Table 27.4.
Table 27.4: Summary of Total Mine Operating Costs
Item $US/t
Consumables, Materials & Maint. Parts 9.50
Total Services and Power 4.90
Total Labour 6.70
Total/t Stope Mined 21.10
Total/t Milled 18.79
27.2 PROCESS PLANT OPERATING COSTS
27.2.1 BASIS
The total process plant operating costs of US$11.53/t were developed by IMZ and are
summarized in Table 27.5. This cost estimate reflects a mix of test results, current vendor
pricing, and data from the Pallancata operation and information from similar projects. The bases
for the operating costs were reviewed by P&E and agreed. A contingency allowance is not
included.
27.2.2 OPERATING COST SUMMARY
The following Table 27.5 summarizes estimated mill process operating costs.
Table 27.5: Mill Process Operating Cost Summary
Item Unit Cost ($US/t)

Operating Staff and Labour 2.14
Maintenance Labour 1.20
Power 3.32
Reagents and Consumables 3.85
Maintenance Supplies 0.97
ROM Rehandling to Primary Crusher 0.06
Total Cost/t Milled 11.53
27.3 SMELTING AND REFINING COSTS
The average to smelter and refining operating cost over the mine life is US$11.82 per tonne
milled. This operating cost is based 7 % of the Au and Ag market value.
27.4 GENERAL AND ADMINISTRATION (G&A)
Administration operating costs include costs and taxes for maintaining the Property in good
standing, land taxes, and resource usage fees (water etc.). IMZ estimates the G&A operating cost
at US$7.73/t milled.
27.5 RECAPTURED WORKING CAPITAL
Recaptured working capital of US$8.8 million has been classified as a cash operating cost in
Year 8. This equates to US$1.09/t milled.
27.6 ROYALTIES
These is a basis US$0.6 million royalty on yearly gold and silver revenues. If gold plus silver
revenues exceed US$60 million, but are less than US$120 million, there is an additional 2 %
royalty on Au plus Ag revenues between US$120 and US$60 million. If gold plus silver
revenues exceed US$120 million there is an addition 3 % royalty on gold plus silver revenues
above US$120 million.
IMZ estimates the LOM royalties to total US$26.5 million or US$3.29/t milled.
27.7 TOTAL CASH COST
The average mining cost per tonne milled is estimated to be US$18.79. Processing costs will
average US$$11.53/t, smelting and refining costs average US$11.82/t milled, G&A costs will
average US$7.73/t milled and recaptured working capital is estimated to be US$1.09/t milled
from a total cash operating cost of US$48.79/t milled. With royalties the LOM cash cost is
estimated to be US$52.08/t milled. Table 27.6 is a summary of these costs.
Table 27.6: Summary of Cash Cost Per Tonnes Milled
Description US$/t Milled

Mining 18.79
Processing ($/t treated) 11.53
Smelting and Refining ($/t treated) 11.82
G&A 7.73
Recaptured Working Capital -1.09
Subtotal Cash Operating Costs 48.79
Royalties 3.29
Total Cash Costs/t Milled 52.08

28.0 ECONOMIC ASSESSMENT
This Report is considered by P&E to meet the requirements of a technical report as defined in
Canadian NI 43-101 regulations. The economic analysis contained in this Report is based on
measured, indicated and inferred resources. There are no mineral reserves used in this Report.
28.1 ECONOMIC CRITERIA
28.1.1 PHYSICALS
Mine life:
• Pre-production – 2 years
• Production – 7.6 years
Production rate:
• 3,000 tpd
Total mill production:

• 8,029,900 t at 3.78 g/t Au, 137 g/t Ag and 6.06 g/t AuEq
Metallurgical recoveries:
• 88 % Au, 83 % Ag
Total payable metal, for gross revenue:

• 857,800 oz Au, 29.3 million oz Ag
28.1.2 REVENUE
LOM gross gold and silver revenues are estimated to be US$1,356 million. LOM net gold and
silver revenues (after smelting and refining) are estimated to be US$1,261 million. A summary
of estimated LOM gross and net revenues is presented in Table 28.1.
Table 28.1: Summary of Gross and Net Revenues in US$M
Item / Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Total
Gold Market Value 68 98 113 111 116 123 151 77 858
Silver Market Value 35 55 59 63 75 74 87 51 499
Gross Revenues 104 153 172 174 191 197 238 128 1,356
Smelting and Refining 7 11 12 12 13 14 17 9 95
Net Revenues 96 142 160 162 178 183 221 119 1,261
The revenues are based on a gold price of US$1,000/oz and a silver price of US$17.00/oz.

28.1.3 COSTS
Average cash operating cost:

Average cash cost:

LOM capital costs:

• Pre-production capital totals US$168 million
• Sustaining capital totals US$110 million
• LOM capital totals US$278 million (100 % of Property)
28.2 CASH FLOW
A pre-tax cash flow model is presented in Table 28.2. All costs are in 2010 US dollars with no
allowance for inflation.

Table 28.2: Pre-Tax Cash Flow in US$M
Item / Year Year -2 Year -1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Total
Tonnes Mined (000's) 759 1,096 1,096 1,096 1,096 1,096 1,096 696 8,030
Au Grade (g/t) 3.18 3.18 3.64 3.59 3.74 3.95 4.87 3.92 3.78
Ag grade (g/t) 103 110 119 126 151 149 174 161 137
Tonnes to Mill (000’s) 759 1,096 1,096 1,096 1,096 1,096 1,096 696 8,030
Head grade Au g/t 3.18 3.18 3.64 3.59 3.74 3.95 4.87 3.92 3.78
Head Grade Ag g/t 103 110 119 126 151 149 174 161 137
Gross Revenues (US$M) 104 153 172 174 191 197 238 128 1,356
Total Cash Cost (US$M) 0 0 37 55 55 56 59 61 65 30 418
Total Capital Costs (US$M) 41 127 29 15 33 13 10 2 1 8 278
Pre-Tax Cash Flow (US$M) -41 -127 38 84 84 105 123 133 172 89 660
Cum Pre-Tax Cash Flow (US$M) -41 -168 -130 -46 38 143 265 399 570 660
1. Table 28.2 represents 100 % of the Property. IMZ will hold 40 % of the Property (60 % Hochschild) as outlined in framework agreement announced October
12, 2010. Readers are cautioned that as of the date of filing this Report, the framework agreement between IMZ and Hochschild that indicates the ownership
proportions of the Inmaculada Property, remains subject to regulatory approvals. There is no guarantee expressed or implied by P&E that this agreement
will be realized.
2. This Preliminary Economic Assessment is preliminary in nature, in that it includes inferred mineral resources that are considered too speculative geologically
to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the results of the
Preliminary Economic Assessment will be realized.
3. Initial Capital includes $32.9 million in contingency allowance. Costs are based on Q3 2010 estimates and no escalation factors have been applied. Value
added tax has not been included in the cost estimates.

28.3 CASH FLOW ANALYSIS
The following pre-tax cash flow analysis was completed on the cash flow:
• NPV (at 5 %, 10 % and 15 % discount rate)
The summary of the results of the cash flow analysis is presented in Table 28.3.
Table 28.3: NPV at Various Discount Rates in US$M
Item Discount Rate Value (US$M)

Non Discounted Pre Tax Cash Flow 0% 660
5% 434
NPV at: 10 % 287
15 % 188
Other financial statistics including a pre-tax internal rate of return (“IRR”) of 41 % are
summarized in Table 28.4.
Table 28.4: Other Financial Statistics
Item Units Value

Total Cash Cost Per tonne of ore 52.08
Total Cash Operating Cost Per ounce AuEq 311
Total Cash Operating Cost, Inc Capital Per ounce AuEq 517
Total Cash Operating Cost (by-product) Per ounce Au (Ag credit) -94
Total Cash Operating Cost Inc Capital (by-product) Per ounce Au (Ag credit) 231
Pre-Tax IRR % 41 %
1. Total Cash Operating costs include smelting and refining, Peruvian Government royalties, but do not include
employee profit sharing or depreciation, depletion or amortization.
2. Total Cash Costs per ounce of gold equivalent are calculated using a silver to gold ratio of 60:1.
3. By-product accounting subtracts the revenue generated by silver from the operating costs as a credit to determine
the cost per ounce of gold.
4. Annual and life-of-mine production figures are after 5 % mining losses, 20 % mining dilution and the respective
metallurgical recoveries for gold and silver.
28.4 SENSITIVITY ANALYSIS
Project risks can be identified in both economic and non-economic terms. Key economic risks
were examined by running cash flow sensitivities to:
• silver metal price;
• gold metal price;
• operating costs; and
• capital costs.

To determine what this project is most sensitive to, each of the sensitivity items were adjusted up
and down by 10 % and 20 % to see what effect it would have on the NPV at a discount rate of
5 %. The resultant pre-tax NPV at 5 % value of each of the sensitivity items at 80 % to 120 % is
presented in Table 28.5 and Figure 28-1. This pre-tax NPV is most sensitive to the gold price,
followed by silver price, operating costs and Capex, respectively.
Table 28.5: Sensitivities to NPV at 5 % Discount Rate in US$M
NPV at 5 %
Item 80 % 90 % 100 % 110 % 120 %
Gold price 323 379 434 491 547
Silver price 370 402 434 467 499
Capex 484 459 434 410 385
Operating cost 497 466 434 403 372
Figure 28-1: Sensitivity Graph
Sensitivity Graph
$600
$550
Pre Tax NPV @ 5% (M)
$500
$450
$400
$350
$300
80% 90% 100% 110% 120%
Percent of Value
Operating Cost Capex Gold Price Silver Price

29.0 INTERPRETATIONS AND CONCLUSIONS
P&E offers the following interpretations and conclusions:
1. The Inmaculada project based on this Preliminary Economic Assessment is economically

viable and generates a non discounted pre-tax cash flow of US$660 million and at a 5 %
discount rate; a pre-tax cash flow (NPV) is US$435 million. The pre-tax IRR is 41 % and
the payback period is 2.5 years. Anticipated mine life is 7.6 years.
2. Geotechnical: Based on rudimentary field work testing on drill core, completed by IMZ’s
geologists, it appears that the rock strength may be almost equal to the in-situ tectonic
stresses. If correct, this will affect the stoping mine design, specifically the stope
dimensions and the 25 m sublevel spacing. P&E cautions on the potential mine design
outcome of smaller sublevel intervals which will affect capital development costs and
ultimately the return on investment.
3. On recent review of the mining operating and capital estimates it was noted that 10 % of
the operating cost for miscellaneous items, and the paste backfill plant design and cost
estimate and equipment freight and assembly capital costs have been overlooked in this
Preliminary Economic Assessment. These oversights are not considered material to this
study, however, it must be addressed in any future economic analysis.
4. Good core logging and sampling protocols and procedures have been used by IMZ and
its predecessors at the Inmaculada Property. They conform to what is generally regarded
as best practice, and are well suited to the deposit’s style of mineralization. These
protocols and procedures are appropriate for the collection of data suitable for the
calculation of a mineral resource estimate that complies with NI 43-101 and with CIM
Best Practices Guidelines.
5. Extensive measures have been taken to verify the data used for the 2010 mineral resource
update for the Inmaculada Property. The electronic data base has been entirely
recompiled from original assay certificates provided by the laboratory. Though there are
minor shortcomings with the laboratory’s internal QA/QC program, these are well
covered by IMZ’s external QA/QC program. Consistency between multi-element
chemistry and gold-equivalent assays provides an additional level of confidence in the
data. Independent check samples have confirmed the original assay results. The assay
data have the accuracy and precision required for resource estimation, and the electronic
data base is reliable.

30.0 RECOMMENDATIONS
P&E offers the following recommendations:
1. P&E strongly recommends that IMZ commence a full underground geotechnical stoping
study, as soon as possible.
2. The next phase of study work needs to include the design and capital and operating cost
estimate of a paste backfill plant.
3. The study should be completed to identify the source of electrical power for the project
and that the design and cost of construction of the power transmission line is defined to a
greater degree of certainty. A 120 kV overhead powerline should be considered to reduce
power transmission line losses.
4. Closer consideration should be given to alternate access road routes that may initially
cost more and have long lasting operating savings.
5. Determine the acid generation potential of tailings, waste rock and of possible
construction materials.
6. Additional metallurgical testwork to determine if Preliminary Economic Assessment

level conclusions are valid and refine parameters for process plant design.
7. P&E recommends that the Inmaculada Project proceeds directly to a definitive feasibility
study as soon as possible based on the Preliminary Economic Assessment’s
demonstration of robust economics.
Details of the US$3.4 million budget to complete the recommended work program, above, are
summarized in Table 30.1.

Table 30.1: Budget to Complete Recommended Work Program
Unit Cost Estimated

Item Task Units Qty (US$) Cost (US$)
Core Drilling m 2,250 200 450,000
Testwork & Study Lot 1 250,000 250,000
Geotechnical Subtotal 700,000
Backfill Plant Eng. Design & Estimate Lot 1 100,000 100,000
Powerline Study Lot 1 150,000 150,000
Access Road Trade off Study Lot 1 75,000 75,000
Acid Generation Study Lot 1 150,000 150,000
Environmental Impact Study Lot 1 400,000 400,000
Environmental Subtotal 550,000
Metallurgy Bulk Sample & Testwork 300,000 1 300,000 300,000
Definitive Feasibility Study Study 1,000,000 1 1,000,000 1,000,000
Convert Inferred Resources to M&I Core Drilling & Report 500,000 1 500,000 500,000
Total 3,375,000
Note: Table 30.1 represents 100 % of the Property. IMZ will hold 40 % of the Property (60 % Hochschild) as outlined in framework agreement announced

31.0 REFERENCES
Alden, A. (2001) Geology Map of Perú. Simplified geological map of Perú licensed to
about.com http://geology.about.com/library/bl/maps/blperugeomap.htm.
Canadian Institute of Mining, Metallurgy and Petroleum (2005) CIM Definition Standards for
Mineral Resources and Mineral Reserves adopted by CIM Council on December 11, 2005.
Corbett, G.J. (2002) Epithermal Gold for Explorationists. Australian Institute of Geoscientists,
AIG Online Journal, April 2002.
Corbett, G.J. (2007) Controls to Low Sulphidation Epithermal Au-Ag Mineralization.

Unpublished paper on www.corbettgeology.com.
Golder Associates Perú S.A. (2010) Tailings Disposal and Water Supply. Report prepared by
Golder Associates Perú S.A. for Minera Quellopata, dated September 2010.
Hedenquist, J.W., Arribas, A., Jr. and Gonzalez-Urien, E. (2000) Exploration for Epithermal
Gold Deposits. Reviews in Economic Geology, v. 13, p. 245-277.
Hedenquist, J.W. and White, N.C. (2005) Epithermal Gold-Silver Deposits: Characteristics,
Interpretation and Exploration. Unpublished PDAC/SEG short course notes, March 2005.
Hennessey, B.T. and Pressacco, R. (2009) A Mineral Resource Estimate for the Angela Vein at
the Inmaculada Project, Provinces of Parinacochas and Paucar de Sara Sara, Department of
Ayacucho, Southern Perú. NI 43-101 technical report prepared for Ventura Gold Corporation by
Micon International Limited, date amended March 26, 2009.
Panteleyev, A. (1996) Epithermal Au-Ag: Low Sulphidation. In: Lefebure, D.V. and Hoy, T.
(eds) Selected British Columbia Mineral Deposit Profiles, Volume 2 – Metallic Deposits, British
Columbia Ministry of Employment and Investment, Open File 1996-13, p. 41-44.
Taylor, B.E. (2007) Epithermal Gold Deposits. In: Goodfellow, W.D. (ed) Mineral Deposits of
Canada: A Synthesis of Major Deposit-Types, District Metallogeny, the Evolution of Geological
Provinces, and Exploration Methods. Geological Association of Canada, Mineral Deposits
Division, Special Publication no. 5, p. 113-139.

32.0 CERTIFICATES
CERTIFICATE OF QUALIFIED PERSON
JAMES L. PEARSON, P.ENG.
I, James L. Pearson, P. Eng., residing at 5 Clubhouse Court, Bolton, Ontario, Canada, L7E 0B3, do hereby certify
that:
1. I am an independent Mining Engineering Consultant, contracted by P&E Mining Consultants Inc.

2. This certificate applies to the technical report titled “Technical Report and Preliminary Economic Assessment
on the Angela Vein, Inmaculada Property, Ayacucho, Southern Perú” (the “Technical Report”), with an
effective date of September 9, 2010.
3. I am a graduate of Queen’s University, Kingston, Ontario, Canada, in 1973 with a Bachelor of Science degree
in Mining Engineering. I have worked as a mining engineer for a total of 37 years since my graduation. I am
registered as a Professional Engineer in the Province of Ontario (Reg. No. 36043016).
I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 43-101”) and certify
that, by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past
relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101.
My relevant experience for the purpose of the Technical Report is:
• Review and report as a consultant on numerous exploration and mining projects around the world for due
diligence and regulatory requirements.
• Project Manager and Superintendent of Engineering and Projects at several underground operations in
South America.
• Senior Mining Engineer with a large Canadian mining company responsible for development of
engineering concepts, mine design and maintenance.
• Mining analyst at several Canadian brokerage firms.
4. I have visited the Inmaculada Property on June 10 to 11, 2010.
5. I am responsible for authoring the executive summary and Sections 1, 14, 17, 22, 23 and 28 in their entirety,
authoring Sub-Sections 16.2, 26.0, 26.3 to 26.3.2, 26.6, 26.7, 27.0 to 27.1 and 27.3 to 27.7 and co-authoring
Sections 18, 19, 29 and 30 of the Technical Report.
6. I am independent of the Issuer applying the test in Section 1.4 of NI 43-101.
7. I have had no prior involvement with the Property that is the subject of this Technical Report.
8. I have read NI 43-101 and Form 43-101F1 and this Technical Report has been prepared in compliance
therewith.
9. As of the date of this certificate, to the best of my knowledge, information and belief, the Technical Report
contains all scientific and technical information that is required to be disclosed to make the Technical Report
not misleading.

Signed Date: October 22, 2010
{SIGNED AND SEALED}

[James Pearson]
James L. Pearson, P. Eng.

EUGENE J. PURITCH, P.ENG.
I, Eugene J. Puritch, P. Eng., residing at 44 Turtlecreek Blvd., Brampton, Ontario, L6W 3X7, do hereby certify that:
1. I am an independent mining consultant and President of P&E Mining Consultants Inc.

3. I am a graduate of The Haileybury School of Mines, with a Technologist Diploma in Mining, as well as
obtaining an additional year of undergraduate education in Mine Engineering at Queen’s University. In addition
I have also met the Professional Engineers of Ontario Academic Requirement Committee’s Examination
requirement for Bachelor’s Degree in Engineering Equivalency. I am a mining consultant currently licensed by
the Professional Engineers of Ontario (License No. 100014010) and registered with the Ontario Association of
Certified Engineering Technicians and Technologists as a Senior Engineering Technologist. I am also a
member of the National and Toronto Canadian Institute of Mining and Metallurgy.
I have practiced my profession continuously since 1978. My summarized career experience is as follows:
• Mining Technologist - H.B.M.& S. and Inco Ltd., .................................................................... 1978-1980
• Open Pit Mine Engineer – Cassiar Asbestos/Brinco Ltd., ......................................................... 1981-1983
• Pit Engineer/Drill & Blast Supervisor – Detour Lake Mine, ..................................................... 1984-1986
• Self-Employed Mining Consultant – Timmins Area, ................................................................ 1987-1988
• Mine Designer/Resource Estimator – Dynatec/CMD/Bharti, .................................................... 1989-1995
• Self-Employed Mining Consultant/Resource-Reserve Estimator, ............................................. 1995-2004
• President – P&E Mining Consultants Inc, ..............................................................................2004-Present
4. I have not visited the Inmaculada Property.
5. I am responsible for authoring Section 2 in its entirety and authoring Sub-Sections 3.2, 24.0, 24.1, 24.4, 24.5,
24.6, 24.6.2 and 24.6.3 and co-authoring Sections 18, 19, 29 and 30 of the Technical Report.
6. I am independent of Issuer applying the test in Section 1.4 of NI 43-101.
therewith.
not misleading.

SIGNED AND SEALED}

[Eugene Puritch]
Eugene J. Puritch, P. Eng.

ALFRED S. HAYDEN, P. ENG.
I, Alfred S. Hayden, P. Eng., residing at 284 Rushbrook Drive, Ontario, L3X 2C9, do hereby certify that:
1. I am currently President of EHA Engineering Ltd., Consulting Metallurgical Engineers, Box 2711, Postal Stn.
B., Richmond Hill, Ontario, L4E 1A7.
3. I graduated from the University of British Columbia, Vancouver, B. C. in 1967 with a Bachelor of Applied
Science in Metallurgical Engineering. I have worked as a metallurgical engineer for a total of 43 years since my
graduation from university. I am a member of the Association of Canadian Institute of Mining, Metallurgy and
Petroleum and a Professional Engineer and Designated Consulting Engineer registered with Professional
Engineers Ontario.
5. I am responsible for authoring Section 15 in its entirety and authoring Sub-Sections 26.4 to 26.4.2 and 27.2 to
27.2.2 of the Technical Report.
therewith.
not misleading.

SIGNED AND SEALED}

[Alfred Hayden]
Alfred S. Hayden, P. Eng.

ERNEST BURGA, P. ENG.
I, Ernest Burga, P. Eng., residing at 3385 Aubrey Rd., Mississauga, Ontario, L5L 5E3, do hereby certify that:
1. I am an Associate Mechanical Engineer at P&E Mining Consultants Inc. and President of Andeburg Consulting
Services Inc.
3. I am a graduate of the National University of Engineering located in Lima, Peru at which I earned my Bachelor
Degree in Mechanical Engineering (B.Eng. 1965). I have practiced my profession continuously since
graduation and in Canada since 1975. I am licensed by the Professional Engineers of Ontario (License No.
6067011).
that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past
My summarized career experience is as follows:
• Maintenance Engineer – Backus and Johnston Brewery of Peru. .............................................. 1966-1975
• Design Mechanical Engineer – Cambrian Engineering Group .................................................. 1975-1978
• Design Mechanical Engineer – Reid Crowther Bendy............................................................... 1979-1981
• Lead Mechanical Engineer – Cambrian Engineering Group ..................................................... 1981-1987
• Project Engineer – HG. Engineering .......................................................................................... 1988-2003
• Lead Mechanical Engineer – AMEC Americas ......................................................................... 2003-2005
• Sr. Mechanical Engineer – SNC Lavalin Ltd. ............................................................................ 2005-2009
• President – Andeburg Consulting Services Inc. .................................................................. 2004 to present
• Contracted Mechanical Engineer – P&E Mining Consultants Inc. ..................................... 2009 to present

5. I am responsible for authoring Sub-Sections 24.6.1 to 24.6.1.4 and 26.2 to 26.2.1 of the Technical Report.
8. I have read NI 43-101 and Form 43-101F1 and the Technical Report has been prepared in compliance
therewith.
not misleading.

SIGNED AND SEALED}

[Ernest Burga]
____________________________________
Ernest Burga, P. Eng.

DAVID A. ORAVA, P. ENG.
I, David A. Orava, M. Eng., P. Eng., residing at 19 Boulding Drive, Aurora, Ontario, L4G 2V9, do hereby certify
that:
1. I am an Associate Mining Engineer at P&E Mining Consultants Inc. and President of Orava Mine Projects Ltd.
3. I am a graduate of McGill University located in Montreal, Quebec, Canada at which I earned my Bachelor
Degree in Mining Engineering (B.Eng. 1979) and Masters in Engineering (Mining - Mineral Economics Option
B) in 1981. I have practiced my profession continuously since graduation. I am licensed by the Professional
Engineers of Ontario (License No. 34834119).
My summarized career experience is as follows:
• Mining Engineer – Iron Ore Company of Canada. .................................................................... 1979-1980
• Mining Engineer – J.S Redpath Limited / J.S. Redpath Engineering. ....................................... 1981-1986
• Mining Engineer & Manager Contract Development – Dynatec Mining Ltd. ........................... 1986-1990
• Vice President – Eagle Mine Contractors ............................................................................................1990
• Senior Mining Engineer – UMA Engineering Ltd. ..............................................................................1991
• General Manager - Dennis Netherton Engineering ................................................................... 1992-1993
• Senior Mining Engineer – SENES Consultants Ltd................................................................... 1993-2003
• President – Orava Mine Projects Ltd. ................................................................................. 2003 to present
• Associate Mining Engineer – P&E Mining Consultants Inc............................................... 2006 to present

5. I am responsible for authoring Section 25 in its entirety of the Technical Report.
6. I am an independent of the issuer applying all of the tests in Section 1.4 of NI 43-101.
8. I have read NI 43-101 and Form 43-101F1 and the Report has been prepared in compliance therewith.
not misleading.

SIGNED AND SEALED}

[David Orava]
____________________________________
David Orava, M. Eng., P. Eng.

HARNAM TREHIN, P. ENG.
I, Harnam Trehin., P. Eng., residing at 261 Kingsdale Ave., North York, Ontario M2N 3X3, do hereby certify that:
1. I am an independent professional Electrical Engineer contracted by P& E Mining Consultants Inc.

3. I am a graduate of Concordia University at Montreal, Quebec with a M. Eng. in Electrical Engineering (1977). I
am a Professional Engineer currently licensed by the Professional Engineers Ontario (License No. 46912507 ). I
have worked as an Electrical Engineer for a total of 32 years since obtaining my M. Eng., degree.
• Aker Solutions (Supervisor Electrical Engineering) .................................................................. 2007-2009
• Stone and Webster (Senior Electrical Engineer) ........................................................................ 2005-2007
• Acers International (Senior Electrical Engineer) ....................................................................... 2001-2003

5. I am responsible for authoring Sub-Sections 24.3 to 24.3.2 and 26.1 to 26.1.1 of the Technical Report.
8. I have read NI 43-101 and Form 43-101F1 and the Technical Report has been prepared in compliance
therewith.
not misleading.

SIGNED AND SEALED}

[Harnam Trehin]
____________________________________
Harnam Trehin, P. Eng.

DAVID BURGA, P. GEO.
I, David Burga, P. Geo., residing at 3884 Freeman Terrace, Mississauga, Ontario, do hereby certify that:
1. I am an independent geological consultant contracted by P&E Mining Consultants Inc.

3. I am a graduate of the University of Toronto with a Bachelor of Science degree in Geological Sciences (1997). I
have worked as a geologist for a total of 12 years since obtaining my B.Sc. degree. I am a geological consultant
currently licensed by the Association of Professional Geoscientists of Ontario (License No 1836).
• Exploration Geologist, Cameco Gold ........................................................................................ 1997-1998
• Field Geophysicist, Quantec Geoscience .................................................................................. 1998-1999
• Geological Consultant, Andeburg Consulting Ltd. .................................................................... 1999-2003
• Geologist, Aeon Egmond Ltd. ................................................................................................... 2003-2005
• Project Manager, Jacques Whitford ........................................................................................... 2005-2008
• Exploration Manager – Chile, Red Metal Resources ................................................................. 2008-2009
• Consulting Geologist ..............................................................................................................2009-Present
4. I have visited the Inmaculada Property on June 10 to 11, 2010.

5. I am responsible for authoring Sub-Section 13.1 of the Technical Report.
therewith.
not misleading.

SIGNED AND SEALED}

[David Burga]
David Burga, P. Geo.

RAFAEL S, DÁVILA, P. ENG.
I, Rafael S. Dávila, P. Eng., residing at Av. La Paz, 945, Miraflores, Lima 18, Peru, do hereby certify that:
1. I am an independent geotechnical engineering consultant, Principal and Managing Director of Golder

Associates Perú S.A.
3. I am a graduate of the University of Ouro Preto School of Mines, with a Civil Engineering Degree with
graduate studies in geotechnical engineering and business administration that led to the degrees of Master in
Sciences and Master of Business Administration at the University of Alberta. In addition I am a registered
engineer before the Professional Engineers of Ontario (PEO) and the Peruvian Order of Engineers (CIP). I am a
geotechnical engineer consultant specialized in mine waste management licensed by the Professional Engineers
of Ontario (License No. 90377375) and by the Peruvian Order of Engineers (License No. 67805)
I have practiced my profession continuously since 1992 as an engineer of Golder Associates.
4. I visited the Inmaculada Property on July 1 to 2, 2010.
5. I am responsible for authoring Sub-Sections 24.2 and 26.5 of the Technical Report.
therewith.
not misleading.

SIGNED AND SEALED}

[Rafael Dávila]
Rafael S. Dávila, CIP, P. Eng.

R. MOHAN SRIVASTAVA, P.GEO.
I, R. Mohan Srivastava, P. Geo., residing at 132 Hillingdon Avenue, Toronto, Ontario, M4C 5S4, do hereby certify
that:
1. I am an independent geological consultant and President of FSS Canada Consultants Inc.

3. I am a graduate of the Massachusetts Institute of Technology, with a B.Sc. degree in Earth Sciences, as well as
of Stanford University, with a M.Sc. degree in Geostatistics. I am a geological consultant currently licensed as a
practising member by the Association of Professional Geoscientists of Ontario (License No. 547). I am also a
member of the Canadian Institute of Mining and Metallurgy.
I have practiced my profession continuously since 1979. My summarized career experience is as follows:
• Assistant Geologist – Fluor Mining and Metals,........................................................................ 1979-1980
• Geological Engineer – Key Lake Mining Corporation, ............................................................. 1980-1985
• Research Associate – Stanford University, ................................................................................ 1985-1988
• Geological Research Associate – Ecole Nationale Superieure de Geologie (Nancy, France), ............1988
• Geological Consultant & President – FSS Canada Consultants Inc,.......................................1988-Present
5. I am responsible for authoring Sections 4, 5, 6, 7, 8, 9, 10, 11, 12, 20 and 31 in their entirety and Sub-Sections
3.0 to 3.1, 3.3 to 3.8, 13.0, 13.2 to 13.4 and 16 to 16.1.10 of the Technical Report.
7. I have had prior involvement, assisting with previous resource estimates for the Property that is the subject of
this Technical Report.
therewith.
not misleading.

SIGNED AND SEALED}

[R. Mohan Srivastava]
R. Mohan Srivastava, P. Geo.


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TECHNICAL REPORT

LATITUDE 14°57'27"S, LONGITUDE 73°14'42"W

INTERNATIONAL MINERALS CORPORATION

P&E Mining Consultants Inc.

NI-43-101 & 43-101F1

Mr. James L. Pearson, P. Eng.

Effective Date: September 9, 2010

EXECUTIVE SUMMARY ............................................................................................................ i

ECONOMIC ANALYSIS ............................................................................................................ iv

TECHNICAL SUMMARY ......................................................................................................... ix

1.0 INTRODUCTION AND TERMS OF REFERENCE .................................................... 1

2.0 RELIANCE ON OTHER EXPERTS .............................................................................. 7

4.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES,

5.0 HISTORY ........................................................................................................................ 17

6.0 GEOLOGICAL SETTING ............................................................................................ 18

7.0 DEPOSIT TYPES ........................................................................................................... 23

8.0 MINERALIZATION ...................................................................................................... 26

9.0 EXPLORATION ............................................................................................................. 29

10.0 DRILLING....................................................................................................................... 35

11.0 SAMPLING METHOD AND APPROACH ................................................................. 45

12.0 SAMPLE PREPARATION, ANALYSES AND SECURITY ..................................... 47

13.0 DATA VERIFICATION................................................................................................. 49

14.0 ADJACENT PROPERTIES .......................................................................................... 60

16.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ...................... 66

17.0 OTHER RELEVANT DATA AND INFORMATION ................................................ 86

18.0 INTERPRETATION AND CONCLUSIONS .............................................................. 87

19.0 RECOMMENDATIONS ................................................................................................ 88

20.0 REFERENCES ................................................................................................................ 89

21.0 CERTIFICATES ............................................................................................................. 90

22.0 MINEABLE MINERAL RESOURCE ESTIMATE ................................................... 91

24.0 INFRASTRUCTURE.................................................................................................... 121

25.0 ENVIRONMENT CONSIDERATIONS..................................................................... 134

26.0 CAPITAL COSTS ......................................................................................................... 136

27.0 OPERATING COST ESTIMATE............................................................................... 148

28.0 ECONOMIC ASSESSMENT ...................................................................................... 153

30.0 RECOMMENDATIONS .............................................................................................. 159

31.0 REFERENCES .............................................................................................................. 161

32.0 CERTIFICATES ........................................................................................................... 162

Figure ES-1: Sensitivity Graph ................................................................................................... viii

Table ES.1: Budget to Complete Recommended Work Program ................................................. iii

P&E visited the Inmaculada Property between June 10 to 11, 2011.

INTERPRETATIONS AND CONCLUSIONS

P&E offers the following interpretations and conclusions:

1. The Inmaculada project based on this Preliminary Economic Assessment is economically

P&E Mining Consultants Inc. i

P&E offers the following recommendations:

6. Additional metallurgical testwork to determine if Preliminary Economic Assessment

P&E Mining Consultants Inc. ii

Unit Cost Estimated

P&E Mining Consultants Inc. iii

Total mill production:

Total payable metal, for gross revenue:

Table ES.2: Summary of Gross and Net Revenues in US$M

P&E Mining Consultants Inc. iv

Average cash cost:

LOM capital costs:

P&E Mining Consultants Inc. v

P&E Mining Consultants Inc. vi

• Net present value (“NPV”) (at 5 %, 10 % and 15 % discount rate)

Table ES.4: NPV at Various Discount Rates in US$M

Item Discount Rate Value (US$M)

Table ES.5: Other Financial Statistics

Item Units Value