1 Sample Preparation, Analyses, and Security

Describe:

(a) Sample preparation methods and quality control measures employed before
dispatch of samples to an analytical or testing laboratory, the method or process of
sample splitting and reduction, and the security measures taken to ensure the
validity and integrity of samples taken
(b) Relevant information regarding sample preparation, assaying and analytical
procedures used, the name and location of the analytical or testing laboratories, the
relationship of the laboratory to the issuer, and whether the laboratories are
certified by any standards association and the particulars of any certification
(c) A summary of the nature, extent, and results of quality control procedures
employed and quality assurance actions taken or recommended to provide
adequate confidence in the data collection and processing
(d) The author's opinion on the adequacy of sample preparation, security, and
analytical procedures

1.1 Sample Preparation and Analyzed

From 2009 to 2010, sampling was completed by Analitycal Mineral Service geologist.
The samples were collected from seven (7) drillholes. There is not information about
their preparation and assay.

Since 2013, Sampling was completed by SMC Toropunto mine geologists. The samples
were collected from all drillholes. Samples were bagged and sent to Certimin (Lima,
2013) and ALS (Lima, 2014-2015) Laboratory for preparation and assay. These
procedures were for both projects.

At Certimin laboratory, samples were prepared using standard rock preparation

protocols (PEDIR IC-PMM-001). Preparation was divided by the assay method.
Preparade samples were assayed for a suit of Au, Ag, Cu, Pb, Zn and 35 elements
using diferrents analytical methods. For Au, the samples are analyzed by fire assay and
atomic absorption spectroscopy (EEFF-AAS). The Ag, Cu, Pb and Zn are analyzed by
aqua regia digestion and atomic absorption spectroscopy. The suit of 35 elements area
analyzed using aqua regia or multi-acid digestion and inductively coupled plasma
atomic emission spectroscopy (ICP-OES).

Certimin laboratory are accredited to ISO 9001 by QMI and the North Vancouver
Laboratory is accredited ISO 17025 by the Standards Council of Canada for a number
of specific test procedures, including the method used to assay samples submitted by
SMC Toropunto. ALS Chemex laboratories also participate in a number of international
proficiency tests, such as those managed by CANMET and Geostats.
At ALS Laboratory, samples were prepared using standard rock preparation protocols.
The preparation procedure is weigh, drying and crushing (CRU-31, Tyler 9 mesh),
splitting (SPL-21, until a sample of 250 g) and pulverization (PUL-31, Tyler 200 mesh).
Prepared samples were assayed for a suite of Au and 35 elements. The Au (30 g
sample) were assay using fire assay and atomic absorption spectroscopy (FA-AA-AAS).
The suit of 35 elements were assayed using an aqua regia digestion and inductively
coupled plasma atomic emission spectroscopy (ICP-AES; ME-ICP41) on a 0.5 gram sub-
sample.
 ALS laboratory are accredited to ISO 9001 by QMI and the North Vancouver Laboratory
is accredited ISO 17025 by the Standards Council of Canada for a number of specific
test procedures, including the method used to assay samples submitted by SMC
Toropunto. ALS Chemex laboratories also participate in a number of international
proficiency tests, such as those managed by CANMET and Geostats.

1.1.1 Core Drilling Sampling

Drill-core sampling is carried out the supervision of the Geologist.

The procedures does not indicate the length of the samples or if it is define depending
on the estructure or lithology. Also, does not indicated the criteria about choosing the
cut-line. No indicated in case of a fault zone.

The samples are deposited in a double pre-coded polyethylene bag. Each four samples
are deposited in a bigger bags and sealed with seals. The transportation is carried by a
SMC driver (transpotration), SMC Geologist (shipping) and QAQC geologist (reception).
The SMC driver reported by phonecall to the SMC Geologist in five specific places by
SMC Toropunto, to ensure the samples security.

1.2 Specific Gravity Data

The Immersion method of samples coated in packaging film was used for the
systematic and selective determination of the apparent density of the drilling cores from
the Toropunto Project, with the objective of building, feeding and maintaining the
databases of densities for calculations of tonnages.
To perform this test, diamond drilling core samples and channel samples were taken.
1. The samples are weighed on the digital electronic scale with precision to the gram
2. The sample immersed in the water is weighed.
3. The absolute density of the sample in question is calculated using the following
formula:
Weight ∈air
Absolute Density=
Weight ∈air−Weight∈ water
4. The sample is dried and allowed to cool to room temperature.
5. Weigh to obtain the dry weight of the sample (Pdry).
6. With the weights of the wet and dry sample, the percentage of moisture contained in
the sample is calculated using the following formula:
Wet weight−Dry weight
H %= x 100
Dry weight
7. Cover the dry sample with packing film and weigh, enter this weight into the database
(Pfs).
8. Weigh the sample submerged and suspended in water (discount the weight of the
basket).
9. Use the following formula to calculate the bulk density of the sample:
Pdry
DAPA=
Pfs−Pdry
( Pfs−Psumer )−
Dfs
Where:
DAPA = Apparent Density of the dry sample.
 Pdry = Weight of the dry sample in air.
Pfs = Weight of the dry sample covered with packaging film.
PSumer = Weight of the sample covered with packaging film immersed in water.
Dfs = Density of the packaging film.

1.3 Quality Assurance and Quality Control Programs

The projects has implemented a quality assurance/quality control (“QAQC”) program

which complies with current industry best practices and involves establishing
appropriate procedures and the routine insertion of certified reference materials, blanks,
and duplicates to monitor the sampling, sample preparation and analytical process. the
QAQC graphs are included in Appendix X. Analysis of quality control (“QC”) data is
performed to assess the reliability of sample assay data and the confidence in the data
used for the estimation.

QC samples have been inserted into the drill core samples by SMC Toropunto since
2013, for Toropunto project, and 2015, for Emmanuel project.

Table 1-1: Insert table - Analytical corresponding to the ALS Laboratory during
the period (2009 - 2010)

ALS (2009 - 2010)

 
Total % Inserción
Muestras
primarias
832  
Blanco
Blanco
22 2.64%
grueso
Blanco fino 22 2.64%
 Total 44 5.29%
Duplicado
Duplicado de
10 1.20%
campo
Duplicado
23 2.76%
grueso
Duplicado
33 3.97%
fino
 Total 66 7.93%
Material de Referencia Estándar
TR11215 11 1.32%
TR11216 11 1.32%
ORC-09 12 1.44%
 Total 34 4.09%
Check Sample
 Total 12 1.44%
Total
muestras de
156 18.75%
control
insertadas

Table 1-2: Insert table - Emmanuel corresponding to the ALS Laboratory during
the period (2015)

ALS (2015)
 
Total % Inserción
Muestras
primarias
5390  
Blanco
Blanco
146 2.71%
grueso
Blanco fino 146 2.71%
 Total 292 5.42%
Duplicado
Duplicado de
146 2.71%
campo
Duplicado
145 2.69%
grueso
Duplicado
218 4.04%
fino
 Total 509 9.44%
Material de Referencia Estándar
AUOX-02 27 0.50%
TR11215 73 1.35%
TR11216 73 1.35%
OXHYO-02 46 0.85%
 Total 219 4.06%
Check Sample
 Total 72 1.34%
Total
muestras de
1092 20.26%
control
insertadas

Table 1-3: Insert table - Toropunto corresponding to the ALS Laboratory during
the period (2014)
 ALS (2014)
 
Total % Inserción
Muestras
primarias
8391  
Blanco
Blanco
228 2.72%
grueso
Blanco fino 227 2.71%
 Total 455 5.42%
Duplicado
Duplicado de
225 2.68%
campo
Duplicado
226 2.69%
grueso
Duplicado
339 4.04%
fino
 Total 790 9.41%
Material de Referencia Estándar
TR11215 113 1.35%
TR11216 113 1.35%
OXHYO-02 114 1.36%
 Total 340 4.05%

Check Sample

 Total 111 1.32%

Total
muestras de
1696 20.21%
control
insertadas

Table 1-4: Insert table - Toropunto corresponding to the CERTIMIN Laboratory

during the period (2013)

  CERTIMIN (2013)
 Total % Inserción
Muestras
primarias
4300  
Blanco
Blanco
116 2.70%
grueso
Blanco fino 0 0.00%
 Total 116 2.70%
Duplicado
Duplicado de
121 2.81%
campo
Duplicado
0 0.00%
grueso
Duplicado
0 0.00%
fino
 Total 121 2.81%
Material de Referencia Estándar
MAT-02 155 3.60%
 Total 155 3.60%
Check Sample
 Total    
Total
muestras de
392 9.12%
control
insertadas

1.3.1 Standard Reference Material

Standard reference material (SRM) consists of samples that are used to measure the
accuracy of analytical processes. They are composed of material that has been
thoroughly analyzed to accurately determine its grade within known error limits. SRMs
were inserted by technicians trained in quality control procedures, SRK observed the
insertion of SRMs during the site visit.

SRMs have been used to assess the accuracy of the assay results from ALS
Laboratory and Certimin and have been placed into the sample stream by the geologist
to monitor accuracy of the analytical process.

The grade characteristics of the ten different SRMs, used since XX, and the assaying
used are detailed in Table 1 -5
 Table 1-5: Standard Reference Material inserted at Toropunto and Emmanuel deposits.

Au Ag Cu Pb Zn
QC_Ref Source
Au_ppm StdDev_Au Ag_ppm StdDev_Ag Cu_pct StdDev_Cu Pb_pct StdDev_Pb Zn_pct StdDev_Zn
MAT - 04     29.1 1.05 0.162 0.004 0.7 0.015 0.279 0.003
TR11216 1.519 0.055                
OXHYO-03     92.3 3.45 1.025 0.023 0.346 0.018 0.426 0.009
OXHYO-02     23.3 0.9 0.254 0.006 0.087 0.003 0.107 0.004
TR11215 Target Rocks 0.343 0.012                
TR11210     259 6.5 1.903 0.03 1.37 0.035 5.04 0.125
MAT - 06     469 6.5 2.53 0.06 7.75 0.1 7.98 0.115
MAT - 02     101 2.5 1.043 0.028 2.93 0.05 5.01 0.105
OXHYO-01     45.5 1.35 0.503 0.006 0.172 0.005 0.209 0.009
AuOx-02 0.246 0.013                
 ALS Laboratory

Results for the SRM submitted in drill core samples on ALS Laboratory is detailed in ,
for Toropunto deposits, for Emmanuel deposits, for Analitycal Mineral Service (before
TOROPUNTO SAC)

Table 1-6: Results for standards inserted with Toropunto deposit´s drill core samples

Project Laboratory Element MRE # Samples # Failures Approval (%)

TR11215 113 0 100.00%
Au (ppm) TR11216 113 1 99.12%
Total 226 1 99.56%
OXHYO-02 113 0 100.00%
Ag (ppm)
Total 113 0 100.00%
TOROPUNT
ALS OXHYO-02 113 0 100.00%
O Cu (%)
Total 113 0 100.00%
OXHYO-02 113 1 99.12%
Pb (%)
Total 113 1 99.12%
OXHYO-02 113 2 98.23%
Zn (%)
Total 113 2 98.23%

Table 1-7: Results for Bias inserted with Toropunto deposit´s drill core samples on 2014

Laboratory MRE Element # Samples Mean Bias CV

TR11215 Au (ppm) 105 0.340 -0.009 0.028

TR11216 Au (ppm) 105 1.466 -0.035 0.048

Ag (ppm) 22.66 -2.77% 0.03556

ALS
Cu (%) 0.26 0.76% 0.02753
OXHYO-02 105
Pb (%) 0.09 -1.96% 0.03296

Zn (%) 0.11 3.16% 0.03554

Table 1-8: Results for Bias inserted with Toropunto deposit´s drill core samples on 2015

Laboratory MRE Element # Samples Mean Bias CV

TR11215 Au (ppm) 8 0.339 -0.011 0.021

TR11216 Au (ppm) 8 1.496 -0.015 0.037

Ag (ppm) 22.80 -2.15% 0.03154

ALS
Cu (%) 0.26 2.05% 0.02969
OXHYO-02 8
Pb (%) 0.09 -1.03% 0.02469

Zn (%) 0.11 3.39% 0.02986

Table 1-9: Results for standards inserted with Emmanuel deposit´s drill core samples

Project Laboratory Element MRE # Samples # Failures Approval (%)

AUOX-02 27 0 100.00%
TR11215 73 0 100.00%
Au (ppm)
TR11216 73 4 94.52%
Total 173 4 97.69%
OXHYO-02 45 0 100.00%
Ag (ppm)
Total 45 0 100.00%
EMMANUEL ALS
OXHYO-02 45 0 100.00%
Cu (%)
Total 45 0 100.00%
OXHYO-02 45 0 100.00%
Pb (%)
Total 45 0 100.00%
OXHYO-02 49 0 100.00%
Zn (%)
Total 49 0 100.00%

Table 1-10: Results for Bias inserted with Emmanuel deposit´s drill core samples

Laboratory MRE Element # Samples Mean Bias CV

AUOX-02 Au (ppm) 27 0.24 -1.19% 0.03411

TR11215 Au (ppm) 73 0.34 -1.16% 0.02985

TR11216 Au (ppm) 73 1.5 -1.32% 0.04470

ALS Ag (ppm) 22.48 -3.52% 0.02526

Cu (%) 0.26 0.40% 0.02122

OXHYO-02 45
Pb (%) 0.08 -2.86% 0.02585

Zn (%) 0.11 2.92% 0.02563

Table 1-11: Results for standards inserted with Analitycal Mineral Service ´s drill core
samples

Approval
Laboratory Element MRE # Samples # Failures
Project (%)
Analitycal ALS TR11215 12 0 100.00%
Mineral
Service Au (ppm) TR11216 11 0 100.00%
Total 23 0 100.00%
OXHYO-02 12 0 100.00%
Ag (ppm)
Total 12 0 100.00%
Cu (%) OXHYO-02 12 0 100.00%
Total 12 0 100.00%
 OXHYO-02 12 0 100.00%
Pb (%)
Total 12 0 100.00%
OXHYO-02 12 0 100.00%
Zn (%)
Total 12 0 100.00%

Table 1-12: Results for Bias inserted with Analitycal Mineral Service ´s drill core samples

Laboratory MRE Element # Samples Mean Bias CV

TR11215 Au (ppm) 12 0.34 -0.80% 0.02037

TR11216 Au (ppm) 11 1.46 -3.88% 0.03094

Ag (ppm) 23.01 -1.25% 0.04096

ALS
Cu (%) 0.26 0.98% 0.03384
OXHYO-02 12
Pb (%) 0.09 -1.72% 0.03338

Zn (%) 0.11 3.39% 0.02853

Certimin

Table 1-13: Results for standards inserted with Toropunto deposit´s drill core samples

Project Laboratory Element MRE # Samples # Failures Approval (%)

MAT-02 155 35 77.42%
Ag (ppm)
Total 155 35 77.42%
MAT-02 152 0 100.00%
Cu (%)
Total 152 0 100.00%
TOR CERTIMIN
MAT-02 155 6 96.13%
Pb (%)
Total 155 6 96.13%
MAT-02 155 44 71.61%
Zn (%)
Total 155 44 71.61%

Table 1-14: Results for Bias inserted with Toropunto deposit´s drill core samples on 2013

Laboratory MRE Element # Samples Mean Bias CV

Ag (ppm) 106.677 5.62% 0.025

Cu (%) 1.031 -1.20% 0.013

CERTIMIN  MAT-02 155
Pb (%) 3.010 2.73% 0.012

Zn (%) 4.730 -5.60% 0.014

1.1.1 Blanks
Field blank samples are composed of material bearing grades that are less than the
detection limit of the analytical method used. Blank sample analysis is a method for
determining sample switching and cross-contamination of samples during the sample
preparation or analysis processes.
ALS LABORATORY
Table 1-15: Results of fine and coarse blanks inserted with Toropunto Deposit´s drill core samples

Number Au (ppm) Ag (ppm) Cu (%) Pb (%) Zn (%)

Laborator
Blank Type of Failures Approva Failures Approval Failures Approval Failure Approval Failures Approval
y
Samples # l (%) # (%) # (%) s# (%) # (%)
Blancos Finos TR-17129 226 0 100% 0 100% 0 100% 0 100% 0 100%
ALS
Blancos Gruesos TR-17131 227 0 100% 0 100% 12 95% 0 100% 11 95%

Table 1-16: Results of fine and coarse blanks inserted with Emmanuel Deposit´s drill core samples

Number Au (ppm) Ag (ppm) Cu (%) Pb (%) Zn (%)

Laborator
Blank Type of Failures Approva Failures Approval Failures Approval Failures Approval Failures Approval
y
Samples # l (%) # (%) # (%) # (%) # (%)
Blancos Finos TR-17129 146 0 100% 0 100% 0 100% 0 100% 0 100%
ALS
Blancos Gruesos TR-17131 146 0 100% 3 98% 6 96% 1 99% 8 95%

Table 1-17: Results of fine and coarse blanks inserted with Analitycal Mineral Service ´s drill core samples

Number Au (ppm) Ag (ppm) Cu (%) Pb (%) Zn (%)

Laborator
Blank Type of Failures Approva Failures Approval Failures Approval Failures Approval Failures Approval
y
Samples # l (%) # (%) # (%) # (%) # (%)
Blancos Finos TR-17129 23 0 100% 0 100% 0 100% 0 100% 0 100%
ALS
Blancos Gruesos TR-17131 23 0 100% 0 100% 0 100% 0 100% 2 91%
CERTIMIN
Table 1-18: Results of fine and coarse blanks inserted with Toropunto Deposit´s drill core samples

Number Au (ppm) Ag (ppm) Cu (%) Pb (%) Zn (%)

Laboratory Blank Type of Failures Approval Failures Approval Failures Approval Failures Approval Failures Approval
Samples # (%) # (%) # (%) # (%) # (%)
CERTIMIN Blancos Gruesos TR-17131 116 0 100% 1 99% 0 100% 106 9% 17 93%
 1.3.2 Duplicates
The precision of sampling and analytical results can be measured by re-analyzing the
same sample using the same methodology. The variance between the measured
results will measure their precision. Precision is affected by mineralogical factors such
as grain size and distribution and inconsistencies in the sample preparation and
analysis processes. There are several different duplicate sample types, which can be
used to determine the precision of the entire sampling process, sample preparation, and
analytical process. Blind duplicate samples are submitted to the laboratory. A
description of the different types of duplicates used by TOROPUNTO is provided in
Table 1 -19.

Table 1-19: Duplicate types used at TOROPUNTO and EMMANUEL deposits

Duplicate Description
Sample generated by another sampling operation at the same collection point. includes a duplicate
Field sample taken from a quarter of drill core sample. Since mid 2016, duplicate sample was taken from
the second half of the drill core sample.
Preparation Second sample obtained from splitting the coarse crushed rock during sample preparation.
Laboratory Second sample obtained from splitting the pulverized material during sample preparation.

Numerous plots and graphs are used monthly to monitor precision and bias levels. A
brief description of the plots employed in the analysis of Toropunto duplicate data, is
described below:

 Scatter plot: assesses the scattering degree of the duplicate result plotted against
the original value, which allows for bias characterization and regression
calculations.

 Ranked half absolute relative difference (HARD) of samples plotted against their
rank % value. The HARD is calculated using the following equation:

( O−D)
HARD=
(O+ D)
Where,

O = value of original sample

D = value of duplicate sample

Duplicates were submitted with channel samples and drill core samples. If both the
original and duplicate results returned a value less than two times the detection limit,
the results were disregarded for the HARD analysis due to distortion in the precision
levels at very low grades, close to the limits at which the instrumentation can measure.
These very low values are not considered as material and can distort more meaningful
results if they are not removed.

ALS LABORATORY

Table 1-20: Duplicate results for Toropunto drill core samples

 N° *HARD 90th
Duplicate
Laboratory Metal Duplicates percentile
Type
Analyzed value
Au (ppm) 225 17.3%
Ag (ppm) 225 20.0%
Cu (%) 225 28.4%
Campo
Pb (%) 225 20.7%
As (ppm) 225 22.5%
Zn (%) 225 16.4%
Au (ppm) 227 12.1%
Ag (ppm) 227 15.2%
Cu (%) 227 6.1%
ALS Grueso
Pb (%) 227 20.0%
As (ppm) 227 13.6%
Zn (%) 227 5.6%
Au (ppm) 339 9.1%
Ag (ppm) 339 14.3%
Cu (%) 339 4.0%
Fino
Pb (%) 339 20.0%
As (ppm) 339 14.3%
Zn (%) 339 4.9%

Table 1-21: Duplicate results for Emmanuel drill core samples

N° *HARD 90th
Duplicate
Laboratory Metal Duplicates percentile
Type
Analyzed value
Au (ppm) 144 26.7%
Ag (ppm) 144 16.2%
Cu (%) 144 15.0%
Campo
Pb (%) 144 25.0%
As (ppm) 146 33.3%
Zn (%) 144 18.1%
Au (ppm) 141 15.1%
Ag (ppm) 141 11.1%
Cu (%) 141 3.8%
ALS Grueso
Pb (%) 141 23.1%
As (ppm) 143 22.5%
Zn (%) 141 6.6%
Au (ppm) 214 16.6%
Ag (ppm) 214 14.3%
Cu (%) 214 2.9%
Fino
Pb (%) 214 19.3%
As (ppm) 214 22.2%
Zn (%) 214 4.6%

Table 1-22: Duplicate results for Analitycal Mineral Service drill core samples
 N° *HARD 90th
Duplicate
Laboratory Metal Duplicates percentile
Type
Analyzed value
Au (ppm) 10 40.6%
Ag (ppm) 10 34.0%
Cu (%) 10 33.3%
Campo
Pb (%) 10 17.0%
As (ppm) 10 17.7%
Zn (%) 10 7.1%
Au (ppm) 23 18.5%
Ag (ppm) 23 7.6%
Cu (%) 23 3.8%
ALS Grueso
Pb (%) 23 18.1%
As (ppm) 23 6.1%
Zn (%) 23 7.0%
Au (ppm) 34 13.0%
Ag (ppm) 34 10.5%
Cu (%) 34 8.2%
Fino
Pb (%) 34 13.3%
As (ppm) 34 13.9%
Zn (%) 34 7.3%

CERTIMIN

Table 1-23: Duplicate results for Toropunto drill core samples

*HARD 90th
Duplicate Analytical N° Duplicates
Laboratory Metal percentile
Type method Analyzed
value
Au (ppm)   120 23.1%
Ag (ppm)   120 33.3%
Cu (%)   120 19.7%
Certimin Grueso
Pb (%)   120 38.2%
As (ppm)   121 37.1%
Zn (%)   120 20.6%
1.4 SRK Comment
2 Data Verification
2.1 Verification by Toropunto SAC
2.2 Verifications by SRK
2.2.1 Site Visit
2.2.2 Verifications of Analytical Quality Control Data
2.2.3 Independent Verificacion Sampling

2.3 SRK Comments