Reporte Colombia Gold Marmato

NI43-101 TECHNICAL REPORT ON A
PRELIMINARY ECONOMIC
ASSESSMENT ON THE SEGOVIA AND
CARLA OPERATIONS, DEPARTMENT
OF ANTIOQUIA, COLOMBIA,
FEBRUARY 2014
Prepared For
ZANDOR CAPITAL S.A.
Report Prepared by
SRK Consulting (UK) Limited

d
UK5575
Effective Date: 01 August 2013
Signature Date: 21 February 2014
SRK Consulting Segovia NI43-101 – Details
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© SRK Consulting (UK) Limited 2014
U5575 Segovia February 2014 NI43-10_Report Final February 2014

SRK Consulting Segovia NI43-101 – Details
SRK Legal Entity: SRK Consulting (UK) Limited

th
SRK Address: 5 Floor Churchill House
17 Churchill Way
City and County of Cardiff, CF10 2HH
Wales, United Kingdom.
Date: February 2014
Project Number: UK5575
SRK Project Director: Mike Armitage Corporate Consultant & Chairman
SRK Project Manager: Ben Parsons Principal Consultant (Resource Geology)
Client Legal Entity: Zandor Capital S.A.
Client Address: Zandor Capital S.A,
c/o Gran Colombia Gold Corp,
Carrera 11A, No. 94-95,
Piso 8, Bogota,
Colombia.
NI43-101 Technical Report On A Preliminary Economic Analysis On The

Report Title Segovia and Carla Operations, Department of Antioquia, Colombia,
February 2014
Effective Date: 01 August, 2013
Signature Date 21 February 2014
Project Number: UK5575
Qualified Person:
Benjamin Parsons, Principal Consultant (Resource Geology)
Qualified Person:
Jurgen Fuykschot, Principal Consultant (Mining Engineering)

5th Floor Churchill House
17 Churchill Way
City and County of Cardiff
CF10 2HH, Wales
United Kingdom
E-mail: enquiries@srk.co.uk
URL: www.srk.co.uk
Tel: + 44 (0) 2920 348 150
Fax: + 44 (0) 2920 348 199
EXECUTIVE SUMMARY
NI43-101 TECHNICAL REPORT ON A PRELIMINARY ECONOMIC
ASSESSMENT ON THE SEGOVIA AND CARLA OPERATIONS,
DEPARTMENT OF ANTIOQUIA, COLOMBIA, FEBRUARY 2014
1 INTRODUCTION
SRK Consulting (UK) Limited (“SRK”) is an associate company of the international group
holding company, SRK Consulting (Global) Limited (the “SRK Group”). SRK has been
requested by Zandor Capital S.A. (“Zandor”, the “Company” or the “Client"), a wholly owned
subsidiary of Gran Colombia Gold Corp (“Gran Colombia” or “GCM”), to update the previous
NI43-101 which details a Mineral Resource Estimate on the Mineral Assets of the Company
comprising the Providencia, Las Verticales (Las Aves, El Silencio South and Poma Rosa 2),
Sandra K and El Silencio sub-areas of Segovia Project and an updated Mineral Resource
estimate for the Carla Project, to account for updated environmental studies and a preliminary
economic assessment of the Project. No changes have been made to the Mineral Resource as
part of the current update, with the effective date of the Mineral Resource remaining 01 August
2013. The combined Segovia and Carla Projects are considered for the purpose of this report
collectively due to their close proximity to one another (“the Project”).
The services were rendered between May 2013 and February 2014, leading to the preparation
of the Mineral Resource statement reported herein. The statement was disclosed publically by
GCM in a press release on 01 August 2013, the Effective Date of the technical report. A site
visit to the project site was completed between the 04 and 07 June 2013.
This technical report presents a Mineral Resource statement for the Segovia and Carla Projects
prepared by SRK. The studies were prepared following the guidelines of the Canadian
Securities Administrators’ National Instrument 43-101 and Form 43-101F1 (“NI-43-101”). The
Mineral Resource statement reported herein was prepared in conformity with generally
accepted CIM “Estimation of Mineral Resources and Mineral Reserves Best Practice
Guidelines”.
This preliminary economic assessment (“PEA”) is preliminary in nature, 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 preliminary economic assessment will be realized. The
economic analysis presented in this Report is based on a scoping-level technical-economic
model (“TEM”) and was undertaken solely for the purposes of evaluating the economic viability
of mining the Mineral Resources. No pre-feasibility or feasibility study in respect of the Project
has been previously prepared.
Registered Address: 21 Gold Tops, City and County of Newport, NP20 4PG, Group Offices: Africa
Wales, United Kingdom. Asia
SRK Consulting (UK) Limited Reg No 01575403 (England and Wales) Australia
Europe
North America
South America
SRK Consulting Segovia NI43-101 – Executive Summary
2 PROPERTY DESCRIPTION
2
The Segovia Project, formerly called the Frontino Mine, covers an area of approximately 30 km
and is 100% owned by the Company following its acquisition from Frontino Gold Mines Ltd
(FGM) during August 2010, including 5% which was acquired in connection with the Company’s
merger with Medoro Resources (Yukon) Ltd. (formerly Medoro Resources Ltd) in June 2011.
The concession encompasses a reasonably structurally complex network of gold mineralised
veins with a total strike length of over 47 km (based on previous reporting), including a
significant area of operating underground mine workings, namely El Silencio, Providencia and
Sandra K, which have been in continuous production for more than 150 years.
The major mineralised vein at Providencia is broadly E-W striking and is known from
underground workings to have a total strike length of some 2 km and to comprise of reasonably
geologically continuous structures, within which zones of high and low grades can be found.
The Sandra K and El Silencio veins (striking broadly N-S) display similarly continuous structures
with discrete zones of high and low grades, and have modelled strike extents of 1.2 km and
2.2 km respectively. The continuity at Las Verticales, which is broadly NW-SE striking and
which comprises the Las Aves, El Silencio South and the Poma Rosa 2 veins, is less well
known; however, the individual structures are indicated by drilling to be continuous along strike
for up to 1.3 km.
The Carla Project is located approximately 10 km southeast of the Segovia Project and is
comprised of 16 concessions, which have a combined area of approximately 6,000 hectares,
and a single vein which has modelled strike extents of some 0.9 km.
3 PROJECT GEOLOGY
Gold mineralisation at Segovia occurs in mesothermal quartz-sulphide veins hosted by
granodiorites of the Segovia Batholith. The well-known, partially exploited veins dip at
approximately 30° to the east or north-east. There are also a number of steeply dipping quartz
veins with a N40W trend in the western part of the concession, termed the Las Verticales veins.
In general, the veins are formed of quartz with minor calcite and coarse grained sulphides
comprising pyrite, galena and sphalerite, and typically show a close spatial relationship with
basic dykes. Gold and electrum occur as fine grains (<20 microns) and visible gold is generally
uncommon. Native silver has been reported. The wall-rock alteration to the veins affects the
basalt dykes and the granodiorite in a narrow zone a few metres wide with potassic (biotite),
argillic (illite) and propylitic alteration most commonly encountered along with selective mineral
replacement by chlorite, epidote, pyrite and calcite.

Page ii of xvii
The modelled vein at Providencia is geologically continuous along strike for approximately
2.0 km and has a confirmed down dip extent that ranges from 690 m to greater than 1.3 km,
and an average thickness of 0.9 m, reaching over 5 m in areas of significant swelling and less
than 0.1 m where the vein pinches. Locally, the Providencia vein displays significant disruption
by faulting, pinch and swell structures, fault brecciation and fault gouge. The sample data for
Sandra K and El Silencio confirms geological continuity along strike for 1.2 km and 2.2 km
respectively and indicates down-dip extents of up to 900 m, with thicknesses and structural
complexities that are comparable to the Providencia vein. Although currently less well defined
by sampling, the Las Verticales veins appear geologically continuous along strike for up to
1.3 km, and have an average thickness of 0.5 m, reaching over 2.0 m in areas of vein swelling.
Gold mineralisation at the Carla Project occurs in mesothermal quartz-sulphide veins hosted by
granodiorites of the Segovia Batholith. The Carla vein dips at approximately 35° to the east and
is offset by three broadly NW-SE trending, steeply dipping faults, which reflect a dominantly
strike-slip sinistral sense of movement. The mineralised structure shows a close spatial
relationship with mafic dykes, which are interpreted as pre-dating the gold mineralisation.
The modelled structure at Carla is geologically continuous along strike for approximately 900 m
and has a confirmed down dip extent that ranges from 400 m to greater than 750 m, and an
average thickness of 0.8 m, reaching over 3.5 m in areas of significant swelling and less than
0.1 m where the vein pinches.
4 EXPLORATION, DRILLING AND SAMPLING

All drilling completed by the Company has been collared at surface, intersecting the veins
largely from the northeast and southwest orientations. Prior to 15 August 2012 samples were
sent for preparation to the SGS SA laboratories (“SGS”) sample preparation facility in Medellin
and fire assayed for gold by SGS in Peru. Since 15 August 2012 all sample preparation and fire
assays have been completed at the upgraded SGS facility in Medellin.
At the underground mines (Providencia, Sandra K and El Silencio), channel samples have been
taken at regular intervals vertically across the vein. The channel sample database represents
the accumulation of grade control data for the underground mines for approximately the past 30
years. All historical underground samples were sent to the Mine Laboratory for sample
preparation and analysis. The Company has also completed a separate exploration channel
sampling programme, using a diamond saw to produce improved quality sampling. All
exploration channel samples have been sent to the SGS sample preparation in Medellin for
analysis, which have been treated with the same sample procedures and analysis as diamond
core samples.

Page iii of xvii
5 DATA QUALITY AND QUANTITY

SRK has been supplied with electronic databases for each of the main mines, plus the most
recent drilling database covering the sampling at the project, all of which have been validated
by the Company. In total, there are some 128,000 m of diamond drilling and over 75,000
underground channel samples contained in the databases comprising a combination of
historical and recent diamond core and underground channel samples. The historical channel
samples and drilling (with the exception of Sandra K) are mainly limited to the mined out
portions of the block model.
Historic underground channel samples are typically spaced at 2 m intervals, whilst the more
recent underground channels are sampled at 5 – 10 m intervals. The historic drilling (in relation
to the main deposit areas) is situated on a grid spacing of 100 – 200 m, whilst the more recent
exploration drilling completed by the Company typically ranges between 50 – 100 m spacing,
with the exception of Las Verticales where drill spacing varies from 100 – 200 m.
SRK considers there to be varying levels of confidence in the database provided based on the
age of the sampling, methods used, and laboratories selected. SRK has ranked data according
to high or low confidence which has been used as an indicator during modelling and accounted
for during the Mineral Resource classification.
Highest confidence is assigned to the most recent exploration at the project which has been
completed by the Company and consists of drill core samples. As part of the routine
submissions the Company completes a comprehensive Quality Assurance Quality Control
(“QAQC”) process which has demonstrated that sample preparation and laboratory
performance for the recent drilling campaign has provided assays which are fit for the purpose
of this estimate.
During a 2012 internal assessment of both Indicated and Inferred minerals, the Company noted
its plan for future samples to be analysed in a new laboratory, located adjacent to the Maria
Dama plant at SGS, which would be operated by SGS personnel. An offer to operate the
laboratory has been received from SGS who have also advised requirements for the laboratory
facilities, which are to be procured and constructed by the Company. Construction of the
foundations for the new laboratory had been scheduled to start at the beginning of March 2013,
with the building to be complete by the end of May 2013. SRK noted that the initial building
work appears to have been completed, but no progress has been made to move the current
mine laboratory. SRK would recommend the movement of the current samples to a larger new
facility as a high priority, to increase confidence in the sampling. It has been reported to SRK
that the Company suspended submissions to the current mine laboratory on 01 September
2013. Since 01 September, 2013 all samples have been sent to SGS’s laboratory facilities in
Medellin. With the help of SGS, the Company is working to have all the sample preparation
facilities moved to Segovia. Such facilities are expected to be ready in 2014.
In the 2012 Mineral Resource estimate, SRK noted a lack of density information had been
acquired by the Company for use in the Mineral Resource Estimate. The Company now has in
place a density sampling protocol and programme which is active. The programme has been
implemented by the Company and a total of 580 drill core and channel samples have been
3 3
analysed to date. Density values measured range from 1.51 g/cm to 4.97 g/cm .

Page iv of xvii
3
SRK has selected the average value at 2.7 g/cm as a reasonable representation of mineralised
vein density.
SRK is satisfied with the quality of the laboratories used for the latest programme and based on
the quality control investigations considers that there is no evidence of bias within the current
database which would materially impact on the estimate. Based on the validation work
completed by SRK, the database has been accepted as provided by GCM’s Resource
Geologist.
SRK has reviewed the data acquired for the project and is of the opinion that the exploration
and assay data is sufficiently reliable to support evaluation and classification of Mineral
Resources in accordance with generally accepted CIM Estimation of Mineral Resource and
Mineral Reserve Best Practices Guidelines.
6 MINERAL RESOURCE ESTIMATE

The Mineral Resource model presented herein represents an updated resource evaluation
prepared for the Segovia and Carla Projects. The Mineral Resource model considers in total 94
additional diamond core boreholes drilled by the Company during the period of 2012 to 2013.
The resource evaluation work was completed by Robert Goddard under the supervision of Mr.
Benjamin Parsons, MAusIMM (CP#222568). The effective date of the Mineral Resource
Statement is 01 August 2013.
The Mineral Resource estimation process was a collaborative effort between SRK and GCM
staff. The Company provided to SRK an exploration database and a geological interpretation
comprising preliminary three dimensional (“3D”) digital files (“DXF”) through the areas
investigated by core drilling for each of the main veins. The geology model, geostatistical
analysis, variography, selection of resource estimation parameters, construction of the block
model work were completed SRK. The current drilling information is sufficiently reliable to
interpret with confidence the boundaries of the various veins and the assaying data is
sufficiently reliable to support mineral resource estimation.
Initial work by SRK during the statistical analysis and visual validation indicated the presence of
two sample populations (medium and high grade), which at El Silencio and Providencia (where
the distinction is most evident) have been subdivided into separate domains. The grade
estimation domains therefore comprise of the narrow vein zones interpreted by the Company
geologists and (at Providencia and El Silencio) discrete high-grade gold shoot domains, defined
using Leapfrog Mining Software (“Leapfrog”) grade-shells. The orientation of the high-grade
shoots was confirmed using an initial spherical grade search, allowing a visual analysis of gold
grade continuity.
SRK has produced block models using Datamine Studio 3 Software (“Datamine”). The
procedure involved construction of wireframe models for the fault networks and centrelines of
mining development per vein, definition of resource domains, data conditioning (compositing
and capping) for statistical analysis, geostatistical analysis, variography, block modelling and
grade interpolation followed by validation. Grade estimation has been based on block
dimensions of 20 x 10 x 10 m, 10 x 20 x 10 m, 10 x 10 x 10 m, 10 x 20 x 10 m, 25 x 25 x 25 m
(X,Y,Z) for Providencia, Las Verticales, Sandra K, El Silencio and Carla veins respectively, to
account for their differing orientations and data spacing.

Page v of xvii
Lognormal probability plots were evaluated per domain to determine appropriate grade capping
thresholds. Capping limits of 480 g/t Au (high-grade shoot) and 200 g/t Au (vein) at Providencia,
150 g/t Au (high-grade shoot) and 125 g/t Au (vein) at El Silencio and 25 g/t Au at Las
Verticales were then selected. A capping limit of 240 g/t was applied to the major Sandra K vein
set, whilst 180 g/t Au was applied to the Sandra K–Chumeca sub-vein. At Carla two caps of
100 g/t Au and 50 g/t Au were applied respectively to limit the influence of a limited number of
high-grade samples on the estimate.
The gold grades were then interpolated using appropriate parameters related to the geological
and grade continuity and sample spacing, using an Ordinary Kriging (“OK”) routine for all veins.
The search ellipses follow the typical orientation of the mineralised structures, and where
appropriate were aligned along higher-grade plunging features within the mineralised veins,
namely within the visually evident pay-shoots. Statistical characteristics such as kriging
variances, number of samples used in an estimate, distances to the nearest drillhole, etc, are
also stored in each individual block for descriptive evaluations. SRK also estimated vein
thickness into all blocks contained within the model using an Inverse Distance Weighting
(“IDW”) algorithm.
The resultant block grade distribution appears appropriate for the mineralisation style and noted
continuity, which SRK considers to be an important feature of the deposit. In areas of limited
sampling, the block grade estimates have been produced using expanded search ellipses
which result in more smoothed global estimates. Localised comparisons of composite grades to
block estimates will be less accurate in these areas. Further infill drilling is likely to improve the
local block grade estimates.
SRK has considered sampling quality, sampling density and distance from samples in order to
classify the Mineral Resource according to the terminology, definitions and guidelines given in
the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Standards on Mineral
Resources and Mineral Reserves (December 2005) (the “CIM Standards”) as required by NI 43-
101.
Data quality, drill hole spacing and the interpreted continuity of grades controlled by the veins
and pay-shoots has allowed SRK to classify portions of the veins in the Measured, Indicated
and Inferred Mineral Resource categories respectively. The reported Mineral Resource has
been further sub-divided into material within the remaining pillars, and the longer-term resource
material outside of the previously mined areas. SRK has defined Pillars to indicate all material
which exists within existing development which has yet to be extracted and this includes the
historical pillars within old stoped areas. The Mineral Resource has been depleted for mined
out areas.
SRK considers that the gold mineralisation delineated is amenable to underground extraction.
To determine which portions of the modelled gold mineralization show “reasonable prospect for
economic extraction” by underground mining methods (and to select reasonable reporting
assumptions), an investigation into cut off grades was completed by SRK during 2012 as part of
an internal assessment of the Project for the Company. Variable cut-off grades were indicated
for different mining techniques ranging from 2.2 g/t Au to 6.8 g/t Au, based on a gold price of
USD1300/oz.

Page vi of xvii
SRK has applied an increase in the Mineral Resource definition gold price to USD1,400/oz, and
following consideration of technical economic parameters, SRK elected that the gold
mineralization above a cut-off grade of 3.0 g/t Au over a 1.0 m minimum mining width satisfies
the requirement for Mineral Resource reporting . SRK notes some potential upside may exist
should mining be achievable using more mechanised methods in the future which would result
in a lower cut-off grade.
The Mineral Resource Statement presented in Table ES 1-1 was prepared by SRK under the
supervision of Benjamin Parsons MAusIMM (CP#222568). Mr Parsons is an independent
Qualified Persons as this term is defined by National Instrument 43-101. The effective date of
the Mineral Resource Statement is 01 August 2013.
Table ES 1-1: SRK Mineral Resource Statement for the Segovia and Carla Projects for
1
Zandor Capital Dated 01 August 2013
Measured Indicated Measured and Indicated Inferred
Project Deposit Type Tonnes Grade Au Metal Tonnes Grade Au Metal Tonnes Grade Au Metal Tonnes Grade Au Metal
(kt) (g/t) (koz) (kt) (g/t) (koz) (kt) (g/t) (koz) (kt) (g/t) (koz)
LTR 200 14.8 95 247 24.6 195 447 20.2 291 88 20.1 57
Pillars 392 14.8 186
Providencia
Pillars (Historic
224 26.9 193
Mined Area)2
LTR 263 10.9 92 263 10.9 92 422 8.2 111
Sandra K
Pillars 77 12.3 31 77 12.3 31 14 14.4 6
Segovia LTR 681 11.6 254

El Silencio
Pillars 1309 9.7 406
Verticales LTR 771 7.1 176
LTR 200 14.8 95 510 17.5 287 709 16.8 383 1962 9.5 598
Subtotal
Pillars 77 12.3 31 77 12.3 31 1715 10.9 599
Segovia
Project Pillars (Historic
224 26.9 193
Mined Area)2
Subtotal Carla
Carla LTR 154 9.7 48 154 9.7 48 178 9.3 53
Project
1
The mineral resources are reported at an in situ cut-off grade of 3.0 g/t Au over a 1.0 m mining width, which has been
derived using a gold price of USD1,400/oz, and suitable benchmarked technical and economic parameters for
underground mining and conventional gold mineralised material processing. Each of the mining areas have been sub-
divided into Pillar areas (“Pillars”), which represent the areas within the current mining development, and Long-Term
Mineral Resources (“LTR”), which lies along strike or down dip of the current mining development. Mineral Resources
are not Mineral Reserves and do not have demonstrated economic viability. All figures are rounded to reflect the
relative accuracy of the estimate. All composites have been capped where appropriate.
2
Note Providencia Pillars has been subdivided into areas of increased mining of historical areas to provide a breakdown
on the level of confidence.
7 COMPARISON WITH PREVIOUS ESTIMATE

In comparison to the previous (April 2012) Mineral Resource estimate for the Segovia Project at
a cut-off grade of 3.0 g/t Au over a width of 1.0 m, the new estimate includes additional
Resource material with an increase of 490 koz of gold metal. The increase in gold metal relates
to a global 69% increase in tonnage, with a 19% decrease in grade at the economic cut-off.

Page vii of xvii
Whilst SRK attributes these changes most significantly to the addition of data from below Mine
Level 29 at El Silencio, key changes noted per estimated sub-deposit at Segovia (at the
economic cut-off) is noted as follows:
x Providencia: Reduction in tonnage (-8%) due to a newly interpreted eastern bounding

fault and improved definition of high-grade shoot domains. Reduced mixing of lower
grades in to high grade (high-grade shoot) areas, in addition to a number of significantly
mineralised intersections drilled in the down-dip area of the Providencia vein (during the
latest phase of exploration), resulted in an associated (+26%) increase in grade;
x Las Verticales: Increase in tonnage (+61%) due to re-interpretation by the Company of

mineralised intercepts and selected infill drilling. Reduction in grade (-63%) most notably
relates to the exclusion of a significant gold sample (0.4 m at 249 g/t Au) on the basis of
the re-interpretation of the “El Silencio South” area;
x Sandra K: Increase in tonnage (+39%) due to additional drilling completed (and additional
underground data acquired). SRK noted a reduction in the grade (-33%) due to improved
control on the distribution of higher grades in the model, as a function of additional data
collected during the latest phase of exploration. On the basis of verification sampling and
infill drilling, SRK has quoted Indicated Resources (in addition to Inferred) on Sandra K
for 2013, namely 340 kt at 11.2 g/t Au, providing 122 koz metal.
x El Silencio: Significant increase in tonnage (+190%) and grade (+50%) due to the
addition of data from below Mine Level 29 at El Silencio.
SRK note that a small percentage of this change in tonnage and grade at the Providencia and
Sandra K mines (when compared with the previous Mineral Resource Estimate) can partly be
attributed to the on-going small scale extraction. Given the use of contractor mining and lack of
grade control system SRK has not been able to undertake accurate comparisons in this regard.
At Carla, the new estimate represents a slight reduction in size of the Mineral Resource with a
loss of some 10 koz of metal at the cut-off of 3.0 g/t Au over 1.0 m. The reduction in gold metal
relates to a global 43% reduction in tonnage, with a 58% increase in grade at the economic cut-
off. SRK attributes these changes most significantly to re-interpretation by the Company of the
Carla vein intercepts, which focused on reducing the dilution at the edges of the mineralised
zone. As a consequence, there has been a significant increase in the mean block grade
(+124%) and reduction to the overall tonnage (-67%).

Page viii of xvii
8 CONCLUSIONS AND RECOMMENDATIONS

Based on the review of the Company life of mine plan (“LoMP”) and limited technical work
undertaken as part of the PEA, SRK draws a series of conclusions outlined in the following
subsections.
8.1 Geology
Infill drilling during the 2012 to 2013 programme focused on three main areas within Segovia:
Providencia, Sandra K, and Las Verticales (Las Aves, El Silencio South and Poma Rosa 2).
Drilling at Providencia and Sandra K has return good results which are in line with those
expected from the previous geological model, with improved definition of high-grade trends.
Drilling within the Las Verticales area returned less satisfactory results with a significant
reinterpretation of the El Silencio South vein being required based on infill drilling not
intersecting the vein as expected. As a result of this reinterpretation, the highest grade sample
within the area cannot be correlated to any additional vein. It is SRK’s conclusion that the Las
Verticales area still presents a reasonable exploration target, but that any potential higher-grade
domains are more likely to be narrow and discontinuous which makes exploration more difficult.
SRK would therefore recommend focus be placed on the current operating mines and locating
extensions or improved definition of high-grade shoots within these as a higher priority which
could bring more material into the mine plan faster and with less underground development.
SRK considers the exploration data accumulated by the Company is generally reliable, and
suitable for the purpose of this Mineral Resource estimate. SRK undertook a laboratory audit of
the SGS sample preparation and fire assay facilities in Medellin and found it to be clean,
organised, with the correct equipment and procedures in place to ensure quality is maintained.
SRK has reviewed and audited the updated exploration data available for the Project and noted
the quality of the gold assays determined at the Zandor Capital Mine (GEM) Laboratory needs
further attention to address poor accuracy shown in analysis of certified reference material, with
assays routinely reporting outside of defined limits, and the evidence of contamination shown in
analysis of blank material, with assays reporting outside typically accepted limits.
Construction of the foundations for the new laboratory had been scheduled to start at the
beginning of March 2013 with the building to be complete by the end of May 2013. SRK noted
that the initial building work appears to have been completed but no progress has been made to
move the current mine laboratory into the new building. SRK would recommend the movement
of the current samples to a larger new facility as a high priority, to increase confidence in the
sampling and understands such a move is expected in 2014.
SRK made a number of recommendations for improvement in terms of further verifying the
historic underground database, and as such the Company has completed a verification channel
sampling program during 2013 at the Providencia and Sandra K mines. The completion of the
verification study (whilst indicating a variable correlation between the historical and check
dataset) has increased the geological confidence in within the re-sampled areas. No work on
the verification of mine/channel samples has been completed to date on El Silencio and should
commence in the lower portion of the mine where vein exposure is good.

Page ix of xvii
SRK has validated the current Mineral Resource estimate based on visual and statistical
techniques. The current lack of a grade control block model (which is updated on a monthly or
quarterly basis), results in difficulty to complete accurate reconciliation between the updated
Mineral Resource estimate and the current mining activities. SRK would recommend the
Company investigate improving the use of localised short term planning models, which would
improve the understanding of the short scale variation in grade, and improve the potential to
monitor the current estimates.
The Mineral Resources as reported will require of further technical studies which seek to
establish the technical feasibility and economic viability of developing commercial mining
operations at the Project.
In relation to the required improvements to data quality, SRK would recommend the following:
x SRK noted during the site visit and from review of the QAQC data a number potential
quality issues at the current Mine laboratory. SRK would recommend the movement of
the current samples to a larger new facility as a high priority; new equipment will also be
required including furnaces to increase quality and hence confidence in the sampling.
x Twinning a portion of the historic drillhole data to determine suitability for use in quoting
block estimates at higher levels of confidence.
x Continuation of the verification channel sampling at the Segovia Operations to further

increase the geological confidence in the associated block estimates, with a priority on El
Silencio where no verification sampling has currently been completed. SRK recommends
this starts within the lower levels of the mine currently available (dewatered).
x Further work is required to better understand the potential economic viability for mining of
the lower confidence material within pillars at Providencia. These studies should include
but not be limited to, identification of oxidation (saprolitic material), possibility of remote
mining technologies.
x SRK would recommend the Company looks towards the use of localised short term
planning models to improve the understanding of the short scale variation in grade, and
improve the potential to monitor the current estimates.
SRK considers there to be good potential to increase and upgrade the reported Mineral
Resources within the Project area with further exploration drilling and sampling. Areas where
this potential could be realised include:
x El Silencio – verification channel sampling of the areas below Mine Level 29 (which SRK
understands are currently being dewatered) will increase the geological confidence within
these areas and (most significantly) the presence the high grade shoots. In addition,
there is potential to add Resources from at depth, namely from the continuation of high-
grade shoots which currently remain open. SRK would suggest initial wide spaced drilling
from surface to confirm the structure beyond the bottom level of the mine, and
subsequent drilling from underground to increase the sample spacing. To be able to
maximise the drilling coverage from underground the use of defined exploration drives
into the hanging wall to establish exploration platforms would be required. To ensure
these are placed in the correct location, further work to understand and define the high
grade shoots is recommended.

Page x of xvii
x Providencia – SRK would recommend investigation into the acquisition of the Licence
area that covers the down-dip continuation of the high grade shoot. There is also
potential to add material along strike towards the west from the current area of (down-dip)
infill drilling where additional grade shoots may exist, which are currently poorly defined
due to low sample density.
x Sandra K – mineralisation currently remains open down-dip of the mine at Sandra K,

most notably within the Sandra K Fault Block and Chumeca veins, and therefore step-out
drilling would be warranted to test for continuation of the mineralisation within these
areas.
In 2014, the Company’s approximately USD 1m exploration program comprises between 6,000
to 7,000 metres of underground drilling distributed amongst the Providencia, Sandra K, El
Silencio and Carla veins to guide the current production and development activities. Beyond
2014, the exploration program included in the Life of Mine Plan (“LoMP”) cash flows comprises
ongoing drilling of approximately 12,000 metres per year at an annual cost of approximately
USD 2m to upgrade inferred resources to measured and indicated resources as production and
development continue in the four primary mining areas at Segovia. The estimated costs of the
above-mentioned exploration drilling program, as proposed by the Company, are included the
LoMP cash flows in Table 25-12.
SRK has recommended the Company consider extending the current Mineral Resources
through a further phase of exploration for the Project area, aimed towards chasing the down-
plunge extensions of high grade shoots on the principal veins, namely Providencia, El Silencio
and Sandra K. The focus of this exploration program, expected to commence sometime after
the Pampa Verde Project is completed, would be to extend the Company’s current Mineral
Resources to extend the LoMP for the Project area. On completion of this phase of the
exploration program, SRK would recommend the current Mineral Resource Estimate for the
Project be updated to better understand the technical feasibility and economic viability of
developing the additional commercial mining operations at the Project.
8.2 Mining
The Company currently operates four mines at Segovia; Providencia, Sandra K, El Silencio and
Carla. All four use primary mining techniques, whereas, only Providencia, Sandra K and
El Silencio apply secondary pillar extraction.
In addition the Company is currently in the process of constructing the Pampa Verde project,
accessing the deeper sections of the Providencia Mine, plus shallower sections of the Sandra K
Techo and Carla veins, which is scheduled to finalize by the end of 2014.
The mine currently produces a single mine plan covering the mining of all resources. The mine
plan covers both primary mining and secondary mining by contractors.

Page xi of xvii
For primary mining, the mine plan commences by breaking the unmined sections of the reef into
a series of panels. The design of each panel demonstrates a continuation of the current
extraction strategy of placing haulage levels spaced 30 vertical metres apart with the area
between these haulage levels denoted as the panels. The height of each panel is determined
by the gradient of the seam and allows for an employee of reasonable height to walk through
the mine without crouching. In the existing mining areas, this equates to a typical minimum
mining height of 1.2 m. As the seam dip increases towards vertical, the minimum mining height
decreases. The difference between the seam thickness and the minimum mining height is
considered to be planned dilution. An additional dilution skin of 0.15 m on either side of the vein
is taken into account to reduce losses.
For secondary mining, no design work is undertaken. The Company calculates the required
gold production requirements after primary mining has been scheduled and distributes the
required gold ounces amongst the existing operations. Grades and tonnages are back
calculated from the gold targets, though the nature of the contract mining means that this detail
is largely redundant. The mining contractors determine which pillars they extract and when. No
mining losses or dilution are considered for the mining as the contractors are paid per ounce
delivered.
SRK considers that the current mining plan process to be adequate and approaching
international standards. The lack of a more detailed short-term plan relies on experienced crews
and good front-line management to implement what is essentially a spreadsheet exercise.
SRK notes that the Company mining plan is based on Measured, Indicated and Inferred
resources and a limited amount of mineralized material which has not been included in the
resources. SRK highlights to the reader that SRK has been provided with a geological model to
identify these areas, but has not included these within the Mineral Resource due to uncertainty
in quality of the historical sampling data. As such the Company has not based its production
decision on mineral reserves demonstrating economic feasibility and technical viability.
Historically, such projects have a much higher risk of economic and technical failure and such
failure may have a material adverse impact on the Company’s future profitability. The LoMP
currently plans for 65 ktpa to be mined at a grade of 8.0 g/t during 2014, after which the area is
considered depleted and the remainder of the planned LoMP is covered by the current Mineral
Resource.
Whilst the mine has been producing for many years using these planning systems, albeit using
far larger panels, no reconciliation data was provided as to how well the production has
complied with the previous mine plans. SRK supports the recent initiatives by the Company to
introduce a more robust mine planning process, though the project is in its infancy and the
targeted framework for future mine planning has yet to be finalised.
Another key concern regarding the mine planning process is the lack of planning and
reconciliation of the secondary mining activities. As the pillar extraction sequence is determined
by the individual contractors, the Company has no inventory of which pillars have been mined
and which are still in place (the Company informed SRK that plans are in place for this to be
remedied in the future). Aside from being a safety hazard, it adds considerable uncertainty to
the achievability of the LoMP for secondary mining as there is reduced confidence in the
amount of payable material in-situ available to be mined. As noted, GCM is in the process of
hiring a mine geotechnical engineer to control mine design and planning and the mining of
pillars by the contractors.

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The substantial increase in production from the present 100 koz per annum to around 150 koz
per annum from 2015 onwards is based on the following changes:
x More working areas have become available as a result of focus on development works in
the primary mining areas at Providencia, El Silencio, Sandra K and Carla.
x Ramp up in 2015 of the small miners’ production facilitated by an increase of the hoisting
capacity at El Silencio from 450 tpd to 900 tpd and an investment in 2014 to upgrade the
Providencia shaft as part of the Pampa Verde plan.
x The appointment of a new contractor for secondary mining at the El Silencio mine, and
the dewatering of the lower levels, presently inaccessible due to flooding
x Construction of the new Pampa Verde processing plant with a higher throughput of up to
2,500 tonnes per day. Commissioning is scheduled in Q1 2015 and start-up of this plant
is expected in June 2015.
For the primary (company) mining, the Company has moved to a local mine contractor model
where the contractor will hire the labour and supply production equipment and the Company will
pay a fixed rate per tonne mined.
SRK has constructed a technical-economic model (“TEM”) for the purposes of evaluating the
economic viability of mining the Mineral Resources. During the Economic Analysis, SRK
reviewed the primary mining plan created by the Company, which is based on a detailed block
layout. SRK also reviewed (i) the Pillar mining plan, (ii) operational costs, and payment structure
of the small miners, and (iii) capital expenditures
This preliminary economic assessment is preliminary in nature, 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 preliminary economic assessment will be realized. No pre-feasibility or
feasibility study in respect of the Project has been previously prepared.
8.3 Processing
x The upgrade of the Maria Dama plant has been completed and the plant has a current
capacity of 1,300 tpd. A new ball mill was installed in December 2011, and has been in
operation since May 2012 with a capacity of 1,500 tpd, however the downstream
processes (flotation, thickeners, regrinding) limit the overall plant capacity to about 1,300
tpd;
x For the period from January to December 2013, the Maria Dama plant processed an
average of 897 tpd of material;
x In 2013, the company purchased some of the mineral processing equipment required for
the new Pampa Verde processing plant for USD 4.3 m. This purchase included the semi-
autogenous grinding (“SAG”) and ball mills, which are typically long lead time items. The
mills are reconditioned and have a capacity of 3,500 tpd. The other equipment purchased
included crushing feeders, cyclones and pumps, flotation cells and pumps, regrind
pumps, CIL loaded carbon screen and pumps, carbon regeneration furnace and screen
and carbon destruct pumps and screens;
x Plant construction completion and the start of commissioning are planned for end Q1
2015 with the plant operating at full capacity by June 2015;

Page xiii of xvii
x The installation of a new treatment facility at Pampa Verde using new equipment and
current gold processing technology is seen to be sound and it may also be possible to
increase treatment capacity above the nameplate figure of 2,500 t/d with minimal
additional changes and incurred expense if a conservative process and engineering
design is initially adopted;
x The Company will be able take advantage of the 1,500 tpd capacity at Maria Dama as
mine production ramps up during the construction phase of the new 2,500 tpd plant at
Pampa Verde. However, the long-term requirement for the Maria Dama plant should be
reviewed as more information becomes available. The 2,500 tpd capacity ultimately
available at the new Pampa Verde plant and the currently forecast mining production
plans are the key considerations;
x Opportunity exists to increase overall treatment rate to 3,800 t/d by operating the two
plants simultaneously, which is in excess of the LoMP mining plans;
x The Pampa Verde plant will not be optimised and hence higher capital and operating
costs may be incurred;
x Metallurgical testwork must be performed for the Pampa Verde plant in order to optimise
the processing parameters;
x Production capacity of the mines is less than the Pampa Verde processing plant capacity
which could results in sub-optimal operation of the plant and higher operating costs than
planned; and,
x Forecast capital costs for the Pampa Verde plant could exceed expectations.
8.4 Tailings
x The designs for the proposed facilities appear to be fit for the purpose and provided that
there is appropriate QAQC during construction and ongoing monitoring of the stability,
SRK considers the design to be appropriate;
x The Company is implementing a tailings filtration (dewatering) process in the mill design
so that the tailings can be dry stacked in a designated area, engineering work is currently
being completed to optimise this process. This capital cost is included in the Pampa
Verde budget. The area for the dry stacked tailings contains a saprolitic layer which will
prevent seepages. Drainage channels and bunds will be constructed to contain the dry
tailings. The existing tailings facility will also be used if required as well;
x The permitting of the potential El Chocho tailings storage facility (TSF), that could receive
dry tailings from the Maria Dama and Pampa Verde beneficiation plant, is pending
approval of additional technical information being developed by the Company;
x Construction timelines for this facility may be affected by the presence of illegal artisanal
miners in the development area. The Company is reportedly dealing with the artisanal
miners through legal means;
x According to the Company there are no permitting requirements to change the tailings
disposal method to dry stack; and

Page xiv of xvii
8.5 Water Management

SRK have completed a high-level review of the hydrogeological conditions as part of an internal
review of the Indicated and Inferred mineral resources of the Company completed in 2012. No
further review has been completed as part of the current commission but the key findings of the
study are shown below:
x Insufficient work has been undertaken on the hydrogeological setting to establish the
level of risk associated with groundwater;
x Information from the current dewatering of the exiting mine indicate that groundwater
inflow into the mines is manageable;
x There is no mine water balance and dewatering records are not maintained and therefore
it is not known how much of the dewatering water is used in the plant and how much is
discharged to the surface water environment;
x Important issues may arise within the context of environmental impact which needs to be
understood prior to development of any new mines and extension of the existing ones;
x Risk to current mining activity at the Providencia mine by mining activities within the
previously flooded El Silencio mine (which is co-managed by contractors) have been
th
mitigated as the current level of dewatering at El Silencio is at the 30 level, deeper than
any of the other Company mines, which together with the Company’s intension to control
the rate of dewatering at El Silencio should preclude such risks to its operations;
x Insufficient work has been undertaken on the hydrological setting to establish the level of
risk associated with pluvial (rainfall) derived water;
x Surface water runoff (pluvial drainage) is likely to represent significant water

management challenge to the project considering the difficulties in distinguishing
between the impacts from the artisanal mining activities and those of the Company.
Drainage system design should be based on sound hydrological principles and a defined
storm event return period or magnitude of the design storm;
x According to the available information regarding the water supply requirements and
surface water records in the area, water supply for processing and potable water should
not present a significant challenge to the project. However, management of wastewater
within and around the waste management facilities and the plant area is considered one
of the most challenging aspects to the project;
x SRK understands that the Company is designing the Pampa Verde Project to maximize
the use of recycled water in the plant operations and from the tailings facility. A zero
discharge policy should be applied during the project construction and operation, in such
a manner that water recycling is maximised and water treatment and release is
minimised. This will help reduce the operating cost, prevent potential for environmental
damage and liabilities, and enhance the company reputation with local population and
investors;
x While groundwater inflow into the mines may not be a critical issue, a good
understanding of the hydrogeological setting will be important to establish the baseline
environmental setting and possible impacts with respect to the overall project;

Page xv of xvii
x A thorough understanding of the local rainfall and pluvial drainage issues must be
established and an appropriate management system designed, based on a robust design
storm return period;
x An assessment of the water resources availability is required in order to establish when
abstraction can take place and the regulatory and environmental consequences of
abstraction;
x A site wide water balance is required to optimise the water supply and storage
requirements; and
x Based on a review of the permit register for Segovia and information provided, the
necessary secondary permits for water abstraction, forest use, air emissions, discharges
and river course construction for the operating mines (El Silencio, Sandra K, and
Providencia) appear to be in place or are addressed by the 2012 PMA that is pending
approval.
8.6 Environmental
SRK completed a site visit during February 2012 to review the environmental conditions of the
Project as part of the Company internal review of the Mineral Resources. Since this visit SRK
has conducted a desktop review of information provided by the Company regarding the current
status of environmental and social management of the Segovia Project. SRK reviewed the
setting, environmental permitting status, the current approach by the Company to the
environmental and social management, stakeholder engagement and the closure planning and
costs process. The environmental and social review does not cover the Carla Project as no site
visit has been carried out to this site and reviewed documentation related only to the Segovia
Project.
The following conclusions can be drawn from the review of the Segovia Project:
x Permitting: Developments within RPP 140 are permitted through the posting of an
Environmental Management Plan (PMA) and secondary permits for use of water
abstraction, forest use, air emissions, discharges and river course construction. The
project is permitted under the 2004 PMA. The Company submitted an updated PMA to
reflect the current operation in June 2012 with a further update to include the Pampa
Verde processing plant in May 2013. The decision by the regulatory authority on this
document is expected by the Company in June 2014.
x Environmental and social management: Environmental and social issues are currently
managed in accordance with the 2004 PMA. The 2012 PMA represents an improvement
in management practices and, if approved, the management measures in the 2012 PMA
will become legally binding. Substantial financial resources (USD 3M capex and USD
0.5M opex) and technical specialist support will be required to implement the measures in
the 2012 PMA.
x Water management: Untreated mine effluents are contributing to contamination of local
surface water courses. Until the 2012 PMA is approved and the committed treatment
measures are implemented, there is a risk the Segovia operation will continue to
contaminate surrounding surface watercourses and may experience action from the
regulatory authority. In addition, there is a risk that changes to the groundwater regime
through dewatering activities of the mines may lead to geotechnical instabilities in
underground workings. Hydrogeological modelling work is proposed to predict and
enable the development of management measures to address this risk.

Page xvi of xvii
x Health and safety of contract miners: The Company employs groups of contract
miners to extract high grade RoM from the pillars in the operating mines. Although each
mining group is required to meet contractual health, safety and environmental standards
set by GCM, there has historically been poor compliance with these standards. GCM has
improved the auditing of compliance of the contract miners but health and safety risks
may be associated with uncontrolled mining of pillar supports, which may potentially lead
to ground collapse and loss of life.
x Stakeholder engagement: Zandor has conducted a stakeholder identification and

analysis and has set stakeholder engagement objectives and goals to develop
communications plans with government, community, media and small miners but the
company does not currently have a stakeholder engagement plan.
x Closure cost: In the absence of a site-wide closure plan for the operation, SRK has
estimated the cost to close the Segovia operations to be in the order of USD 15 million,
which has been included in the capital expenditures plan. The current lack of a detailed
closure cost and financial provisioning for the Segovia Project at present poses a risk that
at the end of the mine life, insufficient funds will be available to close the site in a safe,
environmentally and socially appropriate manner. The largest uncertainty regarding
closure cost is associated with the potential need for long term treatment of water from
the disused mine workings.
8.7 Financial
x The cost reduction programme which was started in 2013 is still continuing and new
contract rates and a new contractor should allow for lower mining costs and steadier
production than achieved over the previous years.
x Based on the work carried out for this study, SRK has concluded that the Segovia
Operations will generate cash flows sufficient to cover operating costs and capital
expenditures over the LoMP.
x Though the Segovia Operations are operational, the significant investment required to
expand production in the coming two years will result in essentially a breakeven cash
flow in 2014.
x The Company also has USD 22.7M of cash as of December 31, 2013 remaining from its
October 2012 Gold Notes financing available to help fund completion of the Pampa
Verde Project.
x Cash flows in the years following 2014 are expected to be sufficient to pay back the
investments.
x SRK notes that the cash flows of the Segovia Operations are more sensitive to
commodity price variations than changes in the operating and capital costs. And;
x The resulting net present value is, however, positive and supports progression with
further development of the Segovia Operations.

Page xvii of xvii
SRK Consulting Segovia NI43-101 – Table of Contents Main Report
Table of Contents
1 INTRODUCTION ................................................................................................. 1
1.1 Background ..............................................................................................................................2
1.2 Terms of Reference..................................................................................................................3
1.3 Scope of Work..........................................................................................................................3
1.4 Source of Information ...............................................................................................................4
1.5 Work Completed.......................................................................................................................4
1.6 Requirement, Structure and Compliance .................................................................................5
1.7 Details of Personal Inspections ................................................................................................5
1.8 Limitations, Reliance on SRK, Declaration, Consent, Copyright .............................................6
2 RELIANCE ON OTHER EXPERTS ..................................................................... 8
3 PROPERTY DESCRIPTION AND LOCATION ................................................... 9
3.1 Licence Location ......................................................................................................................9
3.2 Mineral Tenure .......................................................................................................................10
3.3 Surface Land Rights...............................................................................................................13
3.4 Underlying Agreements..........................................................................................................14
3.5 Environmental Considerations ...............................................................................................15
3.6 Mining Rights in Colombia......................................................................................................15
3.6.1 Exploration Phase ........................................................................................................16
3.6.2 Construction Phase......................................................................................................16
3.6.3 Exploitation Phase .......................................................................................................17
4 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND
PHYSIOGRAPHY .............................................................................................. 18
4.1 Accessibility............................................................................................................................18
4.2 Climate ...................................................................................................................................19
4.3 Physiography..........................................................................................................................19
4.4 Flora and Fauna .....................................................................................................................19
4.5 Local Resources and Infrastructure .......................................................................................19
5 HISTORY ........................................................................................................... 21
5.1 Introduction.............................................................................................................................21
5.2 Ownership History ..................................................................................................................21
5.2.1 Frontino Gold Mines (FGM) .........................................................................................21
5.2.2 FGM Acquisition...........................................................................................................21
5.2.3 Medoro / Gran Colombia Agreements .........................................................................22
5.3 Historical Estimates................................................................................................................22
5.3.1 SEWC Estimate ...........................................................................................................22
5.3.2 SRK 2012 Estimate......................................................................................................23
5.4 Historical Production ..............................................................................................................25
6 GEOLOGICAL SETTING AND MINERALIZATION .......................................... 27
6.1 Regional Geology...................................................................................................................27

Page i of viii
SRK Consulting Segovia NI43-101 – Table of Contents – Main Report
6.2 Local Geology ........................................................................................................................29

6.2.1 Segovia Licences .........................................................................................................29
6.2.2 Carla Licences .............................................................................................................35
7 DEPOSIT TYPES .............................................................................................. 37
8 EXPLORATION ................................................................................................. 38
8.1 Topography ............................................................................................................................38
8.2 Historical Exploration..............................................................................................................38
8.2.1 Underground mapping and sampling...........................................................................38
8.3 GCM Exploration ....................................................................................................................39
8.3.1 Geological Mapping .....................................................................................................39
8.3.2 Geophysical Survey .....................................................................................................39
8.3.3 Underground Sampling ................................................................................................39
8.4 SRK Comments......................................................................................................................45
9 DRILLING .......................................................................................................... 46
9.1 Historical Drilling Programmes ...............................................................................................46
9.1.1 Introduction ..................................................................................................................46
9.1.2 Hole orientation and survey data .................................................................................46
9.2 GCM Drilling Programme .......................................................................................................47
9.2.1 Introduction ..................................................................................................................47
9.2.2 Collar surveys ..............................................................................................................49
9.2.3 Downhole surveys........................................................................................................49
9.2.4 Hole orientation ............................................................................................................49
9.2.5 Diamond drilling procedure ..........................................................................................50
9.2.6 Core Storage................................................................................................................52
9.3 Carla Drilling Programme .......................................................................................................52
9.3.1 Introduction ..................................................................................................................52
9.3.2 Collar Surveys..............................................................................................................53
9.3.3 Downhole Surveys .......................................................................................................53
9.3.4 Hole orientation ............................................................................................................53
9.3.5 Diamond Drilling Procedure .........................................................................................54
9.3.6 Core Recovery .............................................................................................................55
9.3.7 Core Storage................................................................................................................55
9.3.8 Mineralisation and Results...........................................................................................55
9.4 SRK Comments......................................................................................................................56
10 SAMPLE PREPARATION, ANALYSES, AND SECURITY............................... 58
10.1 Introduction.............................................................................................................................58
10.2 Diamond Drilling Sample Preparation and Chain of Custody ................................................58
10.3 Channel Sample Preparation and Chain of Custody .............................................................59
10.4 Sample Preparation and Sample Analysis.............................................................................60
10.4.1 Mine Laboratory ...........................................................................................................60

Page ii of viii
10.4.2 SGS Laboratory ...........................................................................................................61

10.5 Specific Gravity Data..............................................................................................................61
10.5.1 Segovia Project ............................................................................................................61
10.5.2 Carla Project ................................................................................................................63
10.5.3 SRK Comments ...........................................................................................................63
10.6 Quality Assurance and Quality Control Programs .................................................................63
10.7 SRK Comments......................................................................................................................64
11 DATA VERIFICATION....................................................................................... 65
11.1 Verifications by the Company ................................................................................................65
11.2 Quality Assurance and Quality Control (QAQC) for 2013 Submissions to SGS Laboratories65
11.2.1 Insertion of CRM ..........................................................................................................66
11.2.2 Blanks ..........................................................................................................................67
11.2.3 Duplicates ....................................................................................................................67
11.3 Quality Assurance and Quality Control (QAQC) for 2013 Submissions to Internal Mine (GEM)
Laboratory ..............................................................................................................................67
11.4 Verification of laboratory at Umpire Laboratory......................................................................69
11.5 Verifications by SRK...............................................................................................................72
11.5.1 Site Visit .......................................................................................................................72
11.5.2 Verification of Sampling Database...............................................................................72
11.6 SRK Comments......................................................................................................................73
12 MINERAL PROCESSING AND METALLURGICAL TESTING ......................... 74
13 MINERAL RESOURCE ESTIMATES ................................................................ 75
13.1 Introduction.............................................................................................................................75
13.2 Resource Estimation Procedures...........................................................................................75
13.3 Resource Database................................................................................................................76
13.4 Statistical Analysis – Raw Data..............................................................................................76
13.5 Solid Body Modelling..............................................................................................................77
13.5.1 Geological Wireframes.................................................................................................77
13.5.2 Mineralisation Wireframes ...........................................................................................77
13.5.3 Mineralisation Model Coding........................................................................................79
13.5.4 Mine Depletion Wireframes..........................................................................................81
13.6 Compositing ...........................................................................................................................81
13.7 Evaluation of Outliers .............................................................................................................82
13.8 Statistical Analysis and Variography ......................................................................................84
13.8.1 Classical Statistics .......................................................................................................84
13.9 Geostatistical Analysis ...........................................................................................................85
13.10 Block Model and Grade Estimation..............................................................................88
13.11 Final Kriging Parameters .............................................................................................89
13.12 Model Validation and Sensitivity ..................................................................................91
13.12.1 Sensitivity Analysis .................................................................................................91

Page iii of viii
13.12.2 Block Model Validation............................................................................................93

13.13 Mineral Resource Classification...................................................................................95
13.14 Mineral Resource Statement .......................................................................................98
13.15 Grade Sensitivity Analysis .........................................................................................101
13.16 Comparison to Previous Mineral Resource Estimates ..............................................103
14 MINERAL RESERVE ESTIMATES ................................................................. 105
15 MINING METHODS ......................................................................................... 106
15.1 Introduction...........................................................................................................................106
15.2 Historical Production ............................................................................................................106
15.3 Mining Methods ....................................................................................................................107
15.4 Providencia Mine..................................................................................................................109
15.5 Sandra K...............................................................................................................................111
15.6 El Silencio Mine....................................................................................................................112
15.7 Carla Mine ............................................................................................................................113
15.8 Pampa Verde Project ...........................................................................................................114
15.9 Labour ..................................................................................................................................114
15.9.1 Modifying Factors.......................................................................................................118
15.10 Cut-Off Grade.............................................................................................................119
15.11 Life of Mine Plan ........................................................................................................120
15.12 Conclusions................................................................................................................123
16 RECOVERY METHODS .................................................................................. 124
16.1 Introduction...........................................................................................................................124
16.2 Mine Laboratory ...................................................................................................................124
16.3 Maria Dama Plant.................................................................................................................124
16.4 Maria Dama Plant Flow Sheet .............................................................................................124
16.5 Pampa Verde Plant ..............................................................................................................127
16.6 Segovia Metallurgical Treatment Plan .................................................................................133
16.7 Opportunities and Risk .........................................................................................................134
16.8 Conclusions ..........................................................................................................................134
16.9 Recommendations ...............................................................................................................135
17 PROJECT INFRASTRUCTURE ...................................................................... 136
17.1 Power Generation ................................................................................................................136
18 MARKET STUDIES AND CONTRACTS ......................................................... 137
19 ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY
IMPACT ........................................................................................................... 138
19.1 Setting ..................................................................................................................................138
19.2 Environmental Permitting .....................................................................................................138
19.3 Approach to Environmental and Social Management..........................................................140
19.4 Stakeholder engagement .....................................................................................................141
19.5 Closure planning and costs ..................................................................................................141

Page iv of viii
19.6 Conclusions ..........................................................................................................................142

20 CAPITAL AND OPERATING COSTS ............................................................. 144
20.1 Capital Costs ........................................................................................................................144
20.2 Operating Costs ...................................................................................................................146
21 ECONOMIC ANALYSIS .................................................................................. 149
21.1 Introduction...........................................................................................................................149
21.2 Key Assumptions..................................................................................................................149
21.3 Results..................................................................................................................................151
21.4 Sensitivity .............................................................................................................................152
21.5 Conclusions from the Economic Analysis ............................................................................153
21.6 Recommendations from the Economic Analysis..................................................................154
22 ADJACENT PROPERTIES ............................................................................. 155
23 OTHER RELEVANT DATA AND INFORMATION .......................................... 156
23.1 Geotechnical Considerations ...............................................................................................156
23.2 Hydrogeological, Hyrdology & Water Management .............................................................157
24 INTERPRETATION AND CONCLUSIONS ..................................................... 160
25 RECOMMENDATIONS.................................................................................... 164
25.1 GCM’s Proposed Exploration Program ................................................................................165
25.2 SRK’s Proposed 2014 Work Program..................................................................................165
26 REFERENCES ................................................................................................ 167

Page v of viii
List of Tables
Table 3-1: Mineral Tenure Information............................................................................................ 13
Table 5-1: SEWC Mineral Resource Estimate for Frontino Gold Mines (FGM), effective date 9
June 2010 ...................................................................................................................... 22
Table 5-2: SEWC Mineral Reserve Estimate for Frontino Gold Mines (FGM), effective date 9 June
2010 ............................................................................................................................... 22
Table 5-3: SRK Segovia CIM Long-Term Mineral Resource Statement as of 2 March 2012 at 3 g/t
Au cut off** ..................................................................................................................... 23
Table 5-4: SRK CIM Segovia Pillar Mineral Resource Statement as of 2 March 2012 at 3 g/t Au cut
off** ................................................................................................................................ 24
Table 5-5: SRK Carla Mineral Resource Statement as of 2 April 2012 at 3 g/t Au cut-off**........... 25
Table 5-6: Summary Statistics for Total Gold Production at Providencia, El Silencio and Sandra K
Mines 2000 – 2012 ........................................................................................................ 26
Table 8-1: Summary of Sampling Sources in Exploration Database .............................................. 41
Table 8-2: Summary of Underground Sampling (Mine and Channel) at Segovia........................... 43
Table 9-1: Summary of FMG Drilling (Historic drilling).................................................................... 46
Table 9-2: Summary of Drilling Information per Project Area Used by SRK as Basis for Geological
Models / Mineral Resource Estimates ........................................................................... 48
Table 9-3: Summary of Drilling per Company at the Carla Project ................................................. 53
Table 11-1: Summary of Analytical Quality Control Data Produced by the Company for the Project
....................................................................................................................................... 66
Table 11-2: Summary of Certified Reference Material Produced by Geostats and Rocklabs and
submitted by the Company in sample submissions....................................................... 66
Table 11-3: Analysis of gold assays versus assigned CRM values for 2013 Submissions .............. 67
Table 11-4: Summary of Analytical Quality Control Data Produced By the GEM Laboratory for the
Project ............................................................................................................................ 68
Table 11-5: Summary of batches selected for Umpire Laboratory checks from the 2012-2013
sampling programme ..................................................................................................... 69
Table 11-6: Summary statistics of SGS versus Acme pair duplicate assays ................................... 70
Table 13-1: Summary of Mineralisation Zones at the Project for August 2013 ................................ 79
Table 13-2: Comparison of Mean Gold Composite Grades (raw composite versus capped) .......... 84
Table 13-3: Summary Statistics for the Project per Zone (Capped Composites) ............................. 85
Table 13-4: Summary of semi-variogram parameters (August 2013)............................................... 87
Table 13-5: Details of Block Model Dimensions for the Project Geological Model ........................... 88
Table 13-6: Summary of block model fields used for flagging different geological properties.......... 89
Table 13-7: Summary of Final Kriging Parameters for the Segovia Project ..................................... 90
Table 13-8: QKNA Number of Samples at Segovia; Providencia Vein Domain, GROUP 1200
(August 2013)................................................................................................................. 91
Table 13-9: Summary Block Statistics for Ordinary Kriging and Inverse Distance Weighting
Estimation Methods* ...................................................................................................... 95
Table 13-10: Summary of 2012 cut-off input parameters ................................................................... 99
Table 13-11: SRK Mineral Resource Statement for the Segovia and Carla Projects for Zandor Capital
1
Dated 01 August-2013 ................................................................................................ 100
Table 13-12: Block Model Quantities and Grade Estimates*, Providencia deposit at various cut-off
Grades ......................................................................................................................... 101
Table 13-13: Block Model Quantities and Grade Estimates*, Sandra K deposit at various cut-off
Grades ......................................................................................................................... 101
Table 13-14: Block Model Quantities and Grade Estimates*, El Silencio deposit at various cut-off
Grades ......................................................................................................................... 102
Table 13-15: Block Model Quantities and Grade Estimates*, Las Verticales deposit at various cut-off
Grades ......................................................................................................................... 102
Table 13-16: Block Model Quantities and Grade Estimates*, Carla deposit at various cut-off Grades
..................................................................................................................................... 103
Table 15-1: Historical production by FGM....................................................................................... 106
Table 15-2: Segovia Total Production 2011- 2013 ......................................................................... 106
Table 15-3: Weighted Average Planned Dilution used in LoMP .................................................... 118
Table 15-4: Cut-Off Grade Assumptions......................................................................................... 119
Table 15-5: Overview of Life of Mine Plan (*) ................................................................................. 122
Table 20-1: Segovia Project Capital Costs ..................................................................................... 144
Table 20-2: Additional Project Capital............................................................................................. 145

Page vi of viii
Table 20-3: Summary of Primary Mining Cost per Mine ................................................................. 146
Table 20-4: Summary of Contract Mining Costs Per Mine.............................................................. 147
Table 20-5: Summary of Processing Costs..................................................................................... 148
Table 21-1: Gold Price Profile (Assumed)....................................................................................... 150
Table 21-2: Production schedule and cash flow* ............................................................................ 151
Table 21-3: Summary of TEM Results ............................................................................................ 152
Table 25-1: Proposed Exploration and Future Phase of Work Budget for the Project ................... 165
List of Figures
Figure 3-1: Location Map of Segovia and Carla Projects................................................................... 9
Figure 3-2: Licence Location ............................................................................................................ 12
Figure 3-3: Location Map for Segovia Licence Boundary versus current mines.............................. 13
Figure 3-4: Land Tenure Map........................................................................................................... 14
Figure 4-1: Road Access to Segovia site and major routes through department of Antioquia,
Colombia (source Colombia Ministry of Transport) ....................................................... 18
Figure 6-1: Regional geological map illustrating the location of the Segovia mining concession.... 28
Figure 6-2: Mineralised Zone at Providencia, intersected in drillhole DS0089 at 453.20 m, as
observed by SRK ........................................................................................................... 31
Figure 6-3: Significant Mineralisation at Providencia, intersected in drillhole DS0089 at 453.54 m,
as observed by SRK ...................................................................................................... 31
Figure 6-4: Procedural Core Photography for drillhole DS0089 completed by the Company during
data acquisition .............................................................................................................. 31
Figure 6-5: Typical thickness of the Providencia (left) and Sandra K (right) veins, as exposed in
underground workings ................................................................................................... 32
Figure 6-6: Vein exposures in underground workings at El Silencio showing relationship with dykes
(left) and typical vein thickness at dewatered Mine Level 29 (right) .............................. 32
Figure 6-7: Presence of galena related to elevated gold grades at Sandra K, in drillhole DS0130
showing 30 cm at 311.34 g/t gold .................................................................................. 33
Figure 6-8: Sketch Model for the Syn-Mineralisation Deformation at Segovia, provided by the
Company (sourced Telluris Consulting, January 2013)................................................. 34
Figure 6-9: Mineralised quartz vein within the GCM exploration adit (March 2012) ........................ 36
Figure 8-1: Channel Sampling Completed by Company during 2013 sampling programme........... 40
Figure 8-2: Logging Sheets used for the Company Channel Sampling Programme ....................... 41
Figure 8-3: Plan view showing distribution of underground sampling at the Segovia Project ......... 44
Figure 9-1: Cross section through the Providencia deposit showing typical drillhole orientation,
looking West (August 2013)........................................................................................... 50
Figure 9-2: Core drilling at hole ZC0079 Poma Rosa, Segovia Project (November 2011).............. 51
Figure 9-3: Core drilling at hole DS0165 Providencia Vein, Segovia Project (June 2013) .............. 51
Figure 9-4: Core Storage Facility at Segovia (November 2011) ...................................................... 52
Figure 9-5: Cross section through the Carla deposit showing holes drilled from east, west and
vertically (August 2013) ................................................................................................. 54
Figure 9-6: Core drilling at the Carla Project (GeoIntegral, 2011); sourced from GCM’s internal
report.............................................................................................................................. 55
Figure 9-7: Map Showing the Distribution of Drilling at Segovia ...................................................... 56
Figure 9-8: Map Showing the Distribution of Drilling at Carla .......................................................... 57
Figure 10-1: Core storage facility at Carla Project documented by GeoIntegral,(2011); sourced from
GCM’s internal report, showing: (a) core photography, (b) core logging area, (c)
checking of recovery and RQD, (d) geological logging, (e) core cutting and (f) core
storage shelving system ................................................................................................ 59
Figure 10-2: Digital scales used to record sample weight for density analysis.................................. 62
Figure 10-3: Core sample coated in paraffin wax with logging sheet, prior to entry to the database 62
Figure 10-4: Summary of density sampling split by estimation domain 0 = wallrock, 1=vein. ........... 63
Figure 11-1: Pulp duplicate results from the GEM Laboratory for June 2013.................................... 69
Figure 11-2: HARD analysis of Pulp and Coarse Reject samples analysed at SGS Medellin and
Acme Chile laboratories, low grade samples filtered..................................................... 71
Figure 13-1: Incremental and Log Histogram of Length Weighted Project Gold Assays................... 76
Figure 13-2: Providencia vein high grade shoot definition using Leapfrog Modelling Software at a
cut-off above 10 g/t Au, comparing 2012 versus 2013 domains (August 2013)............ 78
Figure 13-3: Plan image of the Providencia, Las Verticales, Sandra K and El Silencio Vein
Wireframes coloured by GROUP code (August 2013) .................................................. 80

Page vii of viii
Figure 13-4: 3D Projection of the Providencia, Las Verticales, Sandra K and El Silencio Vein
Wireframes coloured by GROUP code, looking South (August 2013) .......................... 80
Figure 13-5: 3D Projection of the Carla Vein Wireframes and fault interpretations, looking Northwest
(August 2013)................................................................................................................. 81
Figure 13-6: Cumulative Histogram Showing the Mean Length of Raw Samples within the Modelled
Providencia (left) and Sandra K (right) Vein Domains ................................................... 82
Figure 13-7: Sensitivity of the selected Au Cap on sample mean grade at Providencia ................... 82
Figure 13-8: Log Histogram and Log Probability Plot for gold at Segovia – Providencia high grade
shoot (GROUP 1100) samples showing selected grade capping ................................. 83
Figure 13-9: Summary of modelled semi-variogram parameters for the Providencia high-grade shoot
and vein domains (KZONE 1100, 1200) for gold (shown left and right); August 2013.. 86
Figure 13-10: QKNA for use of Restrictive Searches within the Providencia high-grade shoot Domain,
GROUP 1100 (August 2013) ......................................................................................... 92
Figure 13-11: Providencia 3D projection showing visual validation of modelled boreholes intercepts to
grade estimates (August 2013)...................................................................................... 93
Figure 13-12: Validation Plot (Easting) showing Block Model Estimates versus Sample Mean (30m
Intervals) for KZONE 1200............................................................................................. 94
Figure 13-13: 3D view showing SRK’s Mineral Resource Classification at Providencia Outside of the
Licence is not shown (August 2013) .............................................................................. 98
Figure 15-1: Typical Mining Block Layout taken from Providencia Mine ......................................... 107
Figure 16-1: Maria Dama Plant Block Diagram Flowsheet (supplied by Zandor) ............................ 126
Figure 16-2: Pampa Verde Plant Block Diagram Flowsheet (supplied by Zandor).......................... 130
Figure 16-3: Pampa Verde Plant Flowsheet (supplied by Zandor) .................................................. 131
Figure 16-4: Processing Monthly tonnage historical and planned production ................................. 133
Figure 21-1: NPV Sensitivity Graph (Post-Tax at 10% Discount Rate) ........................................... 153
List of Technical Appendices

A QAQC ANALYSIS ........................................................................................... A-1
B OUTLIER EVALUATION PLOTS .................................................................... B-1
C RAW AND LOG HISTOGRAMS...................................................................... C-1
D VARIOGRAMS ................................................................................................ D-1
E BLOCK GRADE VISUAL VALIDATION ..........................................................E-1
F VALIDATION PLOTS .......................................................................................F-1
G MODEL CLASSIFICATION IMAGES .............................................................. G-1

Page viii of viii
17 Churchill Way
CF10 2HH, Wales
United Kingdom
URL: www.srk.co.uk
Tel: + 44 (0) 2920 348 150
Fax: + 44 (0) 2920 348 199
NI43-101 TECHNICAL REPORT ON A MINERAL RESOURCE

ESTIMATE ON THE SEGOVIA AND CARLA OPERATIONS,
DEPARTMENT OF ANTIOQUIA, COLOMBIA, SEPTEMBER 2013
1 INTRODUCTION
SRK Consulting (UK) Limited (“SRK”) is an associate company of the international group
holding company, SRK Consulting (Global) Limited (the “SRK Group”). SRK has been
requested by Zandor Capital S.A. (“Zandor”, the “Company” or the “Client"), a wholly owned
subsidiary of Gran Colombia Gold Corp (“Gran Colombia” or “GCM”), to update the previous
NI43-101 which details a Mineral Resource Estimate on the Mineral Assets of the Company
comprising the Providencia, Las Verticales (Las Aves, El Silencio South and Poma Rosa 2),
Sandra K and El Silencio sub-areas of Segovia Project and an updated Mineral Resource for
the Carla Project, to account for updated environmental studies and review. No changes have
been made to the Mineral Resource as part of this Report, with the effective date of the Mineral
Resource remaining 1 August 2013. The combined Segovia and Carla Projects are considered
for the purpose of this report collectively due to their close proximity to one another (“the
Project”).
The services were rendered during May to September 2013 and February 2014, leading to the
preparation of the Mineral Resource statement and economic analysis reported herein. The
Mineral Resource statement was disclosed publically by GCM in a press release on 1 August
2013, the Effective Date of the technical report. A site visit to the project site was completed
between the 4 and 7 June 2013.
This technical report documents a Mineral Resource statement and subsequent preliminary
economic analysis for the Segovia and Carla Project prepared by SRK. It was prepared
following the guidelines of the Canadian Securities Administrators’ National Instrument 43-101
and Form 43-101F1. The mineral resource statement reported herein was prepared in
conformity with generally accepted CIM “Estimation of Mineral Resources and Mineral
Reserves Best Practice Guidelines”.
The Segovia Project (“Segovia” or the “Segovia Project”) is an operational gold mine, located in
Colombia located in the Segovia-Remedios mining district, Department of Antioquia, north-west
Colombia approximately 180 km northeast of Medellin (the Department capital of Antioquia), at
74° 42’ W and 7° 04’ N. The Carla Project (“Carla”, or the “Carla Project”) is an exploration
prospect located approximately 10 km southeast of Segovia at approximately 7° 04’ 18.0’’ N,
74° 41’ 55.5 ’’ W.
Registered Address: 21 Gold Tops, City and County of Newport, NP20 4PG, Group Offices: Africa
Wales, United Kingdom. Asia
SRK Consulting (UK) Limited Reg No 01575403 (England and Wales) Australia
Europe
North America
South America
SRK Consulting Segovia NI43-101- Main Report
1.1 Background
The Project can be accessed from Medellin via road (190 km). It is an important historical gold
property in Colombia and has been mined for over 150 years.
The Segovia-Remedios gold district is hosted by the Segovia Batholith, which is up to 10 km

wide in the vicinity of Segovia and is elongated N-S. The batholith is bound by two regional
faults which trend N-S, and has been typically assigned to an Upper Jurassic age. Gold-silver
mineralisation at Segovia is hosted by a series of quartz veins hosted by granodiorites. Two
orientations are typically found which consist of:
x Shallow 30° dipping veins, dipping to dipping to the east or north-east; and
x Steeply dipping quartz veins which follow a N40W trend in the west of the concession.
The veins consist of quartz with minor calcite and sulphide minerals (pyrite, galena and
sphalerite).
Current mining comprises of underground mining only, and the Company has targeted
exploiting the down-dip extensions of the current mining areas at Segovia and defining new
minable target areas in the steeply dipping veins (Las Verticales) located on western portion of
the project.
The area surrounding the Segovia Operations has an extensive history of vein-type and alluvial
gold mining dating back to the Spanish colonial period (16th century). Gold mineralisation is
associated with Segovia batholith, and the derived colluvial-alluvial occurrences. Companies
once active in the district include the Choco Pacific Mining Company (Anglo American Gold
Mines), the Frontino Gold Mines (since 1852), and the Pato Gold Mining Company (owned by
Placer Development Inc, an early incarnation of Placer Dome Inc.).
The Company owns five production and exploration gold projects located in the central and
southern parts of the district (formerly known as the Frontino Gold Mines). Frontino Gold Mines
(”FGM”) was in production for 155 years, during which time it is reported to have produced over
4.5 million ounces of gold using relatively unsophisticated mining technology for many of those
years. The existing mill has been in operation for the last 50 years.
FGM ceased exploration drilling for new resources or reserves in 1989 and, as a result of the
liquidation, there has been little or no sustaining capital spent on the mines for many years.
Historically, the average grades of gold mined at El Silencio, Providencia and Sandra K were
reportedly 8.0 g/t Au, 12 g/t Au and 6.0 g/t Au respectively.
The Company has completed exploration (diamond drilling) at the property, focused mainly on
drilling of long surface diamond holes to identify new blocks. The aim of the on-going
exploration programme has been to improve and increase the confidence in the geological
model for the definition of a Mineral Resource Estimate in line with the guidelines set out by the
CIM Standards.
This report summarises the exploration and technical work undertaken on the Project to date by
the Company, with focus on the work completed since the previous estimate.

Page 2 of 168
1.2 Terms of Reference
SRK has prepared this technical report for the Project at the request of the Company. This
report is intended to provide a technical summary of the gold mineral resources on the areas
currently subjected to exploration work by the Company namely the Providencia, El Silencio
and Sandra K veins (relating the currently operating mines), the Las Verticales veins, and also
the Carla vein. Subsequent to the Mineral Resource at the request of the Company SRK has
been requested to review the life of mine plan and economic analysis of the Project.
This technical report is written in compliance with disclosure and reporting requirements set
forth in the Canadian Securities Administrators’ NI43-101, Companion Policy 43-101CP, and
Form 43-101F1. The remaining resources and the in situ mineral resources based on the end of
month surveyed mining progress on June 30, 2013.
1.3 Scope of Work
The scope of work, as defined in a letter of engagement executed on 24 May 2013 between
Zandor and SRK, includes the construction of a geological model and Mineral Resource
estimate for the gold mineralisation delineated by drilling on the Segovia Project (including the
Providencia, Sandra K, El Silencio and Las Verticales veins) and Carla Project (namely the
Carla vein) and the preparation of an independent technical report in compliance with National
Instrument 43-101 and Form 43-101F1 guidelines.
The report is limited to these five vein areas within the larger Zandor licence and SRK has not
reviewed or updated the current Mineral Resources on additional veins located within the
licence as part of the current update.
SRK’s work comprised the assessment of the following aspects of this project:
x topography, landscape, access;

x regional and local geology;
x exploration history;
x audit of exploration work carried out on the project;
x geological modelling;
x mineral resource estimation and validation;
x preparation of a mineral resource statement; and
x recommendations for additional work.
To complete the economic analysis of the Project SRK reviewed the following aspects during
the Economic Analysis:
x The primary mining plan created by the Company, which is based on a detailed block
layout. The in-situ resources have been determined for each block and diluted using a
minimum mining height of 1.2 m and a minimum dilution skin of 0.15 m on either side of
the vein.
x Pillar mining plan
x Operational costs, and payment structure of the small miners
x Capital expenditures

Page 3 of 168
1.4 Source of Information
SRK has been supplied with numerous technical reports and historical technical files. SRK’s
report is based upon:
x discussions with directors, employees and consultants of the Company;
x data collected by the Company from historical exploration on the project;
x access to key personnel within the Company, for discussion and enquiry;
x a review of data collection procedures and protocols, including the methodologies applied
in determining assays and measurements;
x existing reports provided to SRK, as follows:
o Medoro Resources Ltd., Gran Colombia Gold, S.A., Tapestry Resource Corp,
NI43-101 Technical Report Frontino Gold Mines Ltd. Antioquia Colombia June 9,
2010 (SEWC);
o Review of Exploration at the Gran Colombia Gold Mine, Municipalities of Segovia

and Remedios, Department of Antioquia, Colombia, 10 July 2011 (Dr Stewart D.
Redwood);
o Structural Review of the Zandor Capital Project Colombia, November 2011

(Telluris Consulting); and
o Structural Review of the Zandor Capital Project Colombia, January 2013 (Telluris
Consulting);
x data files provided by the Company to SRK as follows:
o topographic grid data in digital format;
o drillhole database, including collar, survey, geology, and assay;
o QAQC data including details on duplicates, blanks and certified reference material
(“CRM”); and
o DXF files, including geological interpretation, vein domain digitised 2D section

interpretations, stope outlines and mined depletions.
1.5 Work Completed
The Mineral Resource statement reported herein is a collaborative effort between the Company
and SRK personnel. The exploration database was compiled and maintained by the Company,
and audited by SRK. The geological model and outlines for the veins and fault surface which
define the limits of the gold mineralisation were constructed by SRK from a two-dimensional
(“2D”) and three-dimensional (“3D”) geological interpretation provided by the Company. In the
opinion of SRK, the geological model is a reasonable representation of the distribution of the
targeted mineralisation at the current level of sampling, and has been used as the basis for an
updated interpretation. The geostatistical analysis, variography and grade models were
completed by SRK during the months June and July 2013. The Mineral Resource statement
reported herein was presented to the Company on 31 July 2013 and disclosed publicly in a
press release dated 01 August 2013.
The technical report was assembled by SRK during August and September 2013.

Page 4 of 168
1.6 Requirement, Structure and Compliance
The standard adopted for the reporting of Mineral Resources in this Technical Report is the CIM
code. This Technical Report has been prepared under the direction of Benjamin Parsons (the
“QP”), as defined in the Companion Policy (“43-101CP”) and who assumes overall professional
responsibility for the document. The Technical Report however is published by SRK, the
commissioned entity, and accordingly SRK assumes responsibility for the views expressed
herein. Consequently with respect to all references to QPs and SRK: ‘all references to SRK
mean the QPs and vice-versa’. SRK is responsible for this Technical Report and declares that it
has taken all reasonable care to ensure that the information contained in this report is, to the
best of its knowledge, in accordance with the facts and contains no omission likely to affect its
import. This Technical Report has been prepared in accordance with the requirements and
guidelines as included in: NI 43-101, Form 43-101F1 and the Companion Policy 43-101CP.
1.7 Details of Personal Inspections
This report is based on information collected by SRK during a site visit performed between
04 and 07 June 2013 by Benjamin Parsons and 04 and 13 June 2013 by Robert Goddard, and
on additional information provided by the Company throughout the course of SRK’s
investigations. Other information was obtained from the public domain. SRK has no reason to
doubt the reliability of the information provided by the Company. This technical report is based
on the following sources of information:
x discussions with Company personnel and consultants;
x inspection of the Segovia Project area, including outcrop and drill core;
x review of exploration data collected by the Company; and
x additional information from public domain sources.
In accordance with National Instrument 43-101 guidelines, Benjamin Parsons and Robert
Goddard visited the Segovia Project between 4 to 7 June 2013 (Benjamin Parsons) and 4 to 13
June 2013 (Robert Goddard), accompanied by Alessandro Cecchi, Director of Exploration of
the Company.
The purpose of the site visit was to review the digitalization of the exploration database and
validation procedures, review exploration procedures, define geological modelling procedures,
examine drill core, interview project personnel and to collect all relevant information for the
preparation of a revised mineral resource model and the compilation of a technical report.
During the visit, a particular attention was given to the treatment and validation of historical
drilling data.
The site visit also aimed at investigating the geological and structural controls on the distribution
of the gold mineralization in order to aid the construction of 3D gold mineralization domains.
SRK was given full access to relevant data and conducted interviews of Company personnel to
obtain information on the past exploration work, to understand procedures used to collect,
record, store and analyse historical and current exploration data.

Page 5 of 168
In accordance with National Instrument PEA 43-101 guidelines, on 23 and 24 February 2012,
SRK sent a team of professionals to Zandor’s Segovia Assets for the purpose of producing a
PEA on these Assets. The SRK team included:
x Sergei Sabanov Project Manager/Mining Engineer;
x Ryan Freeman Mining Engineer;
x Max Brown Geotechnical Engineer;
x Paul Riley Processing Engineer;
x Kris Czajewski Tailings Engineer;
x Houcyne El Idrysy Hydrogeologist; and
x Emily Robinson Environmental Scientist.
The site visit to the Assets incorporated the following elements:
x underground visits to the Providencia, Sandra K and El Silencio mines;
x visit to the Maria Dama processing plant and tailings facilities;
x visit to proposed Pampa Verde processing plant, tailings facility and Las Verticales
decline portal locations;
x inspection of drill core and associated facilities; and
x general review and discussion of all available data for the project and discussion with
Zandor and Gran Colombia representatives.
No further site visit have been conducted by the team as part of the current report which has
been based on a desktop review of the various disciplines, plus SRK’s observations during the
2012 site visit.
1.8 Limitations, Reliance on SRK, Declaration, Consent, Copyright
SRK’s opinion contained herein and effective 01 August 2013, is based on information collected
by SRK throughout the course of SRK’s investigations, which in turn reflect various technical
and economic conditions at the time of writing. Given the nature of the mining business, these
conditions can change significantly over relatively short periods of time. Consequently, actual
results may be significantly more or less favourable.
This report may include technical information that requires subsequent calculations to derive
sub-totals, totals and weighted averages. Such calculations inherently involve a degree of
rounding and consequently introduce a margin of error. Where these occur, SRK does not
consider them to be material.
SRK is not an insider, associate or an affiliate of Zandor, and neither SRK nor any affiliate has
acted as advisor to Zandor, its subsidiaries or its affiliates in connection with this project. The
results of the technical review by SRK are not dependent on any prior agreements concerning
the conclusions to be reached, nor are there any undisclosed understandings concerning any
future business dealings.

Page 6 of 168
Except as specifically required by law, SRK does not assume any responsibility and will not
accept any liability to any other person for any loss suffered by any such other person as a
result of, arising out of, or in connection with this Technical Report or statements contained
herein, required by and given solely for the purpose of complying with the mandate as outlined
in this Technical Report and compliance with NI 43-101. SRK has no reason to believe that any
material facts have been withheld by the Company.
The economic analysis presented in this Technical Report is based on a scoping-level

technical-economic model (“TEM”) and was undertaken solely for the purposes of evaluating
the economic viability of mining the Mineral Resources. This Report is not intended to be a PEA
and should not be used nor interpreted as such.

Page 7 of 168
2 RELIANCE ON OTHER EXPERTS

SRK’s opinion is based on information provided to SRK by Zandor and its associates
throughout the course of SRK’s investigations as described below, which in turn reflect various
technical and economic conditions at the time of writing. SRK was reliant upon information and
data provided by Zandor. SRK has, however, where possible, verified data provided
independently, and completed site visits to review physical evidence for the deposit.
A former NI43-101 completed by SEWC on 9 June 2010, titled “Medoro Resources Ltd., Gran
Colombia Gold, S.A., Tapestry Resource Corp, NI43-101 Technical Report Frontino Gold Mines
Ltd. Antioquia Colombia June 9, 2010”, provides in depth detail on the history of the project and
historical sampling methods. SRK has used the information as provided by SEWC and
summarised the details where possible.
In relation to the geological interpretation and detailed geological work SRK has in part relied on
the information provided by the Company, which SRK has reviewed and accepted in principal
the interpretation but has completed independent work to create the final model, which was
reviewed and approved by the Company. SRK has also relied on interpretations completed by
the Company’s external structural consultant (Dr Tony Starling, Telluris Consulting Limited),
most significantly in relation to hypothesised high-grade shoot orientation, bounding faults to
mineralisation and (in areas of lower data density) local orientation of the veins.
SRK has not performed an independent verification of land title and tenure as summarized in
Section 3 of this report. SRK did not verify the legality of any underlying agreement(s) that may
exist concerning the permits or other agreement(s) between third parties, but have relied on the
Company and its legal advisor for land title issues
In terms of the reporting of advanced stage mining, processing at the project SRK these
aspects were outside the current scope of the project. SRK has provided summary information
to provide context on current mining activity which, is based on an internal assessment of both
Indicated and Inferred minerals completed by SRK and the Company. SRK has completed a
desktop review of the environmental studies as part of the current study.
SRK was informed by the Company that there are no known litigations potentially affecting the
Segovia or Carla Projects.

Page 8 of 168
3 PROPERTY DESCRIPTION AND LOCATION

3.1 Licence Location
The Segovia Project is located in the Segovia-Remedios mining district, Department of

Antioquia, north-west Colombia approximately 180 km northeast of Medellin (the Department
capital of Antioquia), at 74° 42’ W and 7° 04’ N. The Carla Project is an exploration prospect
located approximately 10 km southeast of Segovia at approximately 7° 04’ 18.0’’ N,
74° 41’ 55.5’’ W. Figure 3-1 illustrates the general Project location (inclusive of both Segovia
and Carla Projects) within Colombia.
Figure 3-1: Location Map of Segovia and Carla Projects

Page 9 of 168
3.2 Mineral Tenure
The mining rights for the Segovia Project comprise of Mining Title No. RPP 140 and two
Exploration Licences with a total area of approximately 2,910 hectares (ha), located in the
municipalities of Segovia and Remedios, in the Department of Antioquia, the licence was
previously held by FGM, but since August 2010 is owned by Zandor. The Carla Project
comprises 16 Concessions, which have a combined area of approximately 6,000 ha, and are
located largely to the south of the Segovia Licence.
The location of the Segovia and Carla Licence boundaries are shown in relation to drillhole
collars per deposit area in Figure 3-2.
SRK has not performed an independent verification of land title and tenure as summarised and
its legal advisor for land title issues.
The RPP type of contract licence means Private Property Recognition of a Mining Title
(“Reconocimiento de Propiedad Privada” or “RPP”) and it is not a Concession Contract. RPP
were created by Law 20 of 1969. The law respected prior mining and land rights and required
that proof of mining be submitted. The RPP title is an old freehold property dating from the 19th
century. The RPP titles grant mining rights in perpetuity. Exploitation is required in order to
maintain the validity an RPP licence.
The title was unified from RPP numbers 140 to 198 on 27 March 1998 by Resolution No.
700371. The original area of the mining titles was about 14,000 ha and was reduced to the
present 2,871 ha due to a lack of mine production from the now relinquished area. The title was
registered as RPP on 4 April 1983 by Resolution No. 000410 of the Colombia Ministry of Mines
and Energy. The private property of this mining title was granted to FGM in perpetuity until the
depletion of mineral resources in the area covered by the title. Since RPP No.140 is not a
Concession Contract, the titleholder does not have to comply with the obligations imposed on
Concessionaires or Licensees under Concession Contracts and Exploration or Exploitation
Licences. The main legal obligation the titleholder of RPP 140 has is not to suspend exploitation
for more than one (1) year. The property is currently in exploitation. Other obligations such as
payment of taxes (property tax, surface tax, etc), payment of the compensation and royalties for
exploited minerals and the presentation of quarterly Basic Mining Reports and Technical
Reports must be complied with but are not mandatory conditions to be met in order to retain the
property of Mining Title RPP 140.
FGM also has two Exploration Licences surrounded by the area of RPP 140.
Exploration License No. 3855 was issued to FGM on 27 July 1998 (Resolution 10397) and was
registered on 24 May 2005 for a one year term.
Exploration License No. 3854 was issued on 3 August 1998 (Resolution 10440) and was
registered on 14 June 2005 for a one year term.

Page 10 of 168
Within its term, FGM applied for the conversion of Exploration Licences No. 3854 and 3855 into
Concession Contracts. SRK has been informed by the Company For the exploration licence
No. 3855 the required documents were filed on 19 June, 2013, and Zandor Capital S.A.
Colombia is waiting for a pronunciation from the mining authority granting the area under a
concession contract. As to the case of the Exploration License No. 3854 the documents have
not been filed because the PTO “Programa de Trabajos y Obras” cannot be prepared without
clarifying some issues related to the exploitation of the El Silencio Mine which entered into this
area.
Concessions issued as per the conversion of Exploration Licences will have a duration of
30 years out from the date of registration of which the initial one year term of the Exploration
License will be deducted.
There are also seven “Other titles” that belong to third parties surrounded by the area of
RPP 140 with a total area of 35.81 ha. These are shown on Figure 3-2.
The exploration licenses and third party titles are in gaps between the original mining titles
which were unified to create RPP 140 in 1998. The area of 2,871 ha for RPP 140 is net of the
exploration licenses and third party titles.

Page 11 of 168
Figure 3-2: Licence Location

Page 12 of 168
Table 3-1: Mineral Tenure Information.

Title Number Area (ha) Type Date Awarded Date Expiry
RPP 140 2871 RPP Exploitation 27 March1998 3 August 2028
No. 3854 25 Exploration 27 July 1998 Undergoing conversion to concession
No. 3855 9 Exploration 3 August 1998 awaiting
Total 2907
Other (7 minor licence) 35
Figure 3-3: Location Map for Segovia Licence Boundary versus current mines
3.3 Surface Land Rights
The Company owns 177 of surface land properties (“lotes” and “haciendas” or farms) in the
municipalities of Segovia and Remedios above and adjacent to the mining title RPP 140 and
ancillary facilities such as the hydroelectric plants. These have a total area of about 6,406.8 ha
(Figure 3-4). The surface land properties include essential properties and non-essential
properties for the development of mining activities.
There are four surface land properties which are essential for the development of the mining
activity of FGM due to their geographic location regarding access to the mines. These
properties are described as follows:
x La Salada Property (1,108 ha) – Located above the El Silencio Mine.
x Marmajon Property (238 ha) – Located above the Providencia Mine.
x Santiago Property (134 ha) – Located above the Providencia Mine.
x La Llumidada Property (16.8 ha) – Located above the Sandra K Mine.

Page 13 of 168
Figure 3-4: Land Tenure Map
3.4 Underlying Agreements
The Company has historically leased several other mines to 20 third party operators through
Mining Association Agreements (which are detailed in the 9 June 2010 NI43-101 completed by
SEWC). The Company monitors production in these operations but does not draw revenue from
the production. The agreements were initially setup on a short-term basis of typically in the
order of 6 months, which in most cases have expired. The Company has continued the
contracts on a rolling month basis, under the original terms and conditions of the contract.

Page 14 of 168
In November 2002, FGM entered into a Comoddatum Agreement (non remunerated mining
rights) with the Municipality of Segovia to mine the Marmajito vein which is located in the
hanging-wall of the Providencia mine. The agreement is for a term of 10 years and is due to
expire in Q4 2012.
In September 2003, FGM entered into a similar agreement with “Association Mutual El Cogote”
to mine the El Cogote vein at the old El Cogote mine, which is north of the Providencia mine
and south of the Sandra K mine. The agreement is for a term of 10 years and is due to expire in
Q3 2013.
The Company also leases sections of the Providencia and Sandra K Mines to third party
artisanal contractors known as “Empalizadas” (literally meaning wood-pile or wood-support,
referring to the supports made to extract pillars) to extract high grade pillars from old parts of
the mines.
The La Empalizada, Providencia and La Empalizada Sandra K Norte contracts started in 2009.
The Company buys run of mine material from the contractor but SRK has not been provided
with details of the annual production.
3.5 Environmental Considerations
The main environmental issues for the project are covered in Section 19 of this report.
3.6 Mining Rights in Colombia
Mining in Colombia is governed by the Mining Law 685 of 2001. Some of the contracts in the
mining district are, in addition, governed by the Mining Law 2655 of 1988 and the terms of the
contracts awarded under the Mining Contribution (Aporte Minero) scheme, as explained below,
and the RPP law. The 2001 Mining Law allows applications made under the 1988 Mining Law to
continue the application process under the terms of the old law, and titles granted under the
1988 law continue to be governed by it.
The mining authorities in Colombia are as follows:
Ministry of Mines and Energy (Ministerio de Minas y Energia, MME): The highest mining
authority in the country.
x INGEOMINAS (Instituto Colombiano de Geología y Minería): The MME had delegated

the administration of mineral resources to INGEOMINAS and some Department Mining
Delegations. INGEOMINAS has two departments, the Geological Survey (Servicio
Geológico), and the Mines Department (Servicio Minero) responsible for all mining
contracts except where responsibility for the administration has been passed to the
Departmental Mining Delegations.
x Departmental Mining Delegations (Gobernaciones Delegadas): It administers mining

contracts in the Departments with the most mining activity, including Caldas.
x Mining Energy Planning Unit (Unidad de Planeación Minero Energética, UPME):

Provides technical advice to the MME regarding planning for the development of the
mining and energy sector and maintains the System of Colombian Mining Information
(Sistema de Información Minero Colombiano, SIMCO).

Page 15 of 168
All mineral resources belong to the state and can be explored and exploited by means of
concession contracts granted by the state. Under the Mining Law of 2001, there is a single type
of concession contract covering exploration, construction and mining which is valid for 30 years
and can be extended for another 30 years.
Concession contract areas are defined on a map with reference to a starting point (punto
arcifinio) and distances and bearings, or map coordinates. There is no limit on concession size.
A surface tax (canon superficial) has to be paid annually in advance during the exploration and
construction phases of the concession contract. This is defined as 1 minimum daily wage per
hectare per year for years 1 to 5 (about USD8.65), 1.25 minimum daily wages per hectare per
year for years 6 and 7 (about USD10.81), and 1.5 minimum daily wages per hectare per year
for year 8 (about USD12.97). The 2010 Mining Law does not define the surface tax for years 9
to 11. A reasonable interpretation could be that the surface tax for year 9 should be 1.5
minimum daily wages per hectare and per year (the same as for year 8), and for years 10 and
11 should be 1.75 minimum daily wages per hectare and per year, on the basis that this
provision appears to understand that the surface tax should be increased every two years by
0.25 minimum daily wages per hectare and per year. This issue requires clarification from the
Ministry of Mines and Energy. The minimum daily wage in 2010 is COP 17,166.67 which, at the
present exchange rate of COP1,915 = USD1.00 (1 April 2010), is about USD8.96. The
minimum daily wage is adjusted annually. The properties owned by FGM are in exploitation and
so no surface taxes are payable.
The concession contract has three phases:
3.6.1 Exploration Phase
x Starts once the contract is inscribed in the National Mining Registry (Registro Minero
Nacional, RMN).
x Valid for 3 years plus a 2-year extension.
x Annual property tax.
x Requires an annual Environmental Mining Insurance Policy for 5% of the value of the
planned exploration expenditure for the year.
x Present a mine plan (“PTO”) and an Environmental Impact Study (EIA) for the next
phase.
3.6.2 Construction Phase
x Valid for 3 years plus a 1-year extension.
x Annual property tax payments continue as in Exploration Phase.
x Requires an annual Environmental Mining Insurance Policy for 5% of the value of the
planned investment as defined in the PTO for the year.
x Environmental License issued on approval of Environmental Impact Study.

Page 16 of 168
3.6.3 Exploitation Phase
x Valid for 30 years minus the time taken in the exploration and construction phases, and is
renewable for 30 years.
x Annual Environmental Mining Insurance Policy required.
x No annual property tax.
x Pay royalty based on regulations at time of granting of the Contract.
Royalties payable to the state are 4% of gross value at the mine mouth for gold and silver and
5% for copper (Law 141 of 1994, modified by Law 756 of 2002). For the purposes of royalties,
the gold and silver price is 80% of the average of the London afternoon fix price for the previous
month.

Page 17 of 168
4 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES,

INFRASTRUCTURE AND PHYSIOGRAPHY
4.1 Accessibility
Segovia is located 130 km NE of Medellin in the Segovia-Remedios mining district, Department

of Antioquia, north-western Colombia, at 74° 42’ W and 7° 04’ N.
Road access from Medellin to Segovia is 225 km, which has recently been upgraded and is
now paved the entire length. Going northwards, there is a 61 km road from Segovia to
Zaragoza, and a further 120 km to Caucasia, to connect with roads that lead to the Atlantic
ports of Colombia (Figure 4-1).
Air access is by a 30-minute commercial flight from Medellin to Otú, 15 km south of Segovia,
which has an asphalt-surfaced airstrip. From Otú, it is a 20 minute drive to Segovia via the
towns of Remedios and La Cruzada.
Figure 4-1: Road Access to Segovia site and major routes through department of
Antioquia, Colombia (source Colombia Ministry of Transport)

Page 18 of 168
4.2 Climate
Different climates can be found within the region and vary with elevation. These climates can be
defined as:
x hot (>24°C) below 1,000 m in the Cauca River valley;
x temperate (18°C to 24°C) between 1,000 m and 2,000 m; and
x cold above 2,000 m (12°C to 18°C).
Segovia is situated within the hot zone where the climate is tropical and wet with an annual
rainfall of approximately 2,670 mm. The town of Segovia has an average temperature of 25°C.
Rainfall has a bimodal distribution with the wettest months in from May to December and a dry
season from December to May. A weather station at La Cruzada, Remedios recorded an
annual rainfall of 2,670 mm, with an average temperature is 25°C, and a relative humidity of
70%.
4.3 Physiography
The Project is located in the foothills of the north-eastern part of the Central Cordillera of the
Colombian Andes. The topography is a low-lying plateau or erosional surface at 600 to 850 m
altitude, which is incised by valleys with a relief of less than 250 m, but with steep slopes of up
to 20° to 40°. The drainage pattern is dendritic.
The principal rivers in the Project area are the Pocuné, Bagre and Ité. On the west side of
Segovia, the Pocuné River drains north into the Nechi river, which hosts major placer gold
mining operations. The Nechi is a tributary of the Cauca river, which in turn joins the Magdalena
river which flows into the Atlantic Ocean at Barranquilla. The Bagre River drains the northeast
part of the area and is also a tributary of the Nechi. On the east side of Segovia, the Ité River
flows southeast and then northeast directly into the Magdalena River.
4.4 Flora and Fauna
Vegetation in the local area in its primary state is tropical forest, but most areas have been
cleared for cattle grazing with some degree of secondary forest growth.
4.5 Local Resources and Infrastructure
The towns of Segovia and La Cruzada lie within the mining title RPP 140, with Segovia directly
above the El Silencio vein, and the town of La Cruzada on the southwest side of RPP 140 title.
The town of Remedios lies to the south of Segovia. It is previously reported that the population
of the Municipality of Segovia is given as 35,071 (2005 census) and more recently there are
various figures of 37,154, including 30,266 urban and 6,888 rural (2009), and 39,938.
The Company currently operates three underground mines on RPP 140 called El Silencio,
Providencia, and Sandra K, and a mill and treatment plant called Maria Dama, which historically
processed about 400 tonnes of run of mine material per day (“tpd”), but has recently been
expanded to a 1,000 tpd capacity (reported for four consecutive months to end of June 2013).
The Company has plans to increase the capacity further with the construction of the Pampa
Verde Project which will consist of further mining and processing facilities at the Segovia
operations with the view of increasing production to 2500 tpd.

Page 19 of 168
The Company owns three hydroelectric power generation plants built in the 1930s on rivers
called Doña Teresa No. 1, Doña Teresa No. 2 (located on La Cianurada Creek), and Pocuné,
with a reported capacity to produce 3,400 kiloWatts (“kW”). The Company has three diesel
power plants with capacity to generate 750 kW each; these are used for backup during periods
of low rainfall.
A mine camp exists on RPP 140 with 230 houses with water supplied by the Company and
electricity from the national grid. The Company has three social clubs and a school for 300
children, which is also used by the University of Antioquia.
As of February 2014, the mine directly employs approximately 300 people, including the office
in Medellin, and indirectly employs approximately 500 workers engaged in primary mining
activity through a local mine contractor and approximately 1,500 workers engaged in secondary
mining activity through 31 separate local co-operatives.

Page 20 of 168
5 HISTORY
5.1 Introduction
In preparing these sections of this report relating to background and historical information,
exploration and geological setting, SRK has relied upon previous Technical Reports by SRK,
SEWC and Dr Stewart Redwood.
Initial exploration activity began in the town of Remedios in 1560, but activity was limited due to
the location and difficult terrain to access mineable areas. By the mid-18th century mining
activity were almost abandoned. A second phase of gold mining began following independence
and an influx of investment from Great Britain, through London-registered mining companies.
Mining in the district began in large around the early 1850s, with the town of Segovia founded in
1869, a few kilometres north of the town of Remedios. Segovia was declared a separate
municipality in 1885.
5.2 Ownership History

5.2.1 Frontino Gold Mines (FGM)
FGM is reported to have been founded in 1852, but was only detailed as the Frontino and
Bolivia (South American) Gold Company Limited in 1864. The company mined in the
Municipality of Frontino and the Bolivia Mine at Remedios. It was formed to buy and work the
mines of El Silencio, Cordoba, La Salada and San Joaquin in a property of 5,000 acres.
In 1874, the operations in Frontino were floated off as a separate company, the Antioquia
(Frontino) Gold Mining Co Ltd. The company then focused on the Remedios district, where it
purchased additional mines, and by the late 19th century it was one of the largest companies in
Colombia, with 700 employees. Gold production from the whole district was 24,666 ounces in
1888 and 41,250 ounces in 1893.
5.2.2 FGM Acquisition
Medoro Resources Ltd. (“Medoro”) through its subsidiary Zandor Capital S.A. Colombia
(“Zandor”), made an agreement dated 29 March 2010 to purchase the mining and other assets
of FGM under a Promise to Sell governed by Colombian agreement, which was approved by
the Liquidation Advisory Board. The sale included all assets of FGM with no associated
financial liability. The assets also include RPP 140, plus several lots of land covering the
location of the mines and ancillary facilities, as well as processing, power generation,
accommodation and medical facilities, among others.
The sale price was COP380,000,000,000 (approximately USD 200M) net of taxes, as adjusted,
with exclusive purpose of paying FGM´s labour and pension liabilities. Zandor will have no
further liabilities with respect to any historical pension liabilities, severance costs and other
liabilities. The Company announced the completion of the acquisition on 23 August 2010.

Page 21 of 168
5.2.3 Medoro / Gran Colombia Agreements
In March 2010, Medoro and Gran Colombia Gold Corp. (“Gran Colombia”) entered into an
agreement for Gran Colombia to acquire a 50% interest in Zandor and the FGM assets. This
was later modified (8 June 2010), and as part of the agreement Gran Colombia would be
responsible for all the acquisition costs (approximately USD 7.5M) for a 95% interest in Zandor,
with Medoro retaining 5% (with the option of acquiring an additional 45% interest in Zandor).
The agreement also included Gran Colombia acting as the operator at the project.
On 13 June 2011, Gran Colombia Gold Corp and Medoro Resources Ltd, merged to form a
single company Gran Colombia Gold Corp, which is the 100% owner of Zandor.
5.3 Historical Estimates

A number of different Mineral Resource Estimates have been completed on the property during
the history of the project. Due to the historical nature of the project, not all of these estimates
can be considered to be compliant with CIM Standards.
5.3.1 SEWC Estimate
In June 2010, SEWC reported a Mineral Resource estimate Table 5-1 based on a variable cut-
off reflecting different gold price assumptions (USD1000/oz and USD850/oz) for Indicated and
Inferred Mineral Resources respectively and a Probable Mineral Reserve estimate (Table 5-2).
No Measured Resources were reported as part of the study. The Mineral Resource was
reported inclusive of the Mineral Reserve. No breakdown was provided per deposit and
therefore no direct comparison can be made to the current estimate.
Table 5-1: SEWC Mineral Resource Estimate for Frontino Gold Mines (FGM), effective
date 9 June 2010
Cut-off Grade Tonnes Grade Metal
Classification Type
g/t Au t (g/t) Au oz
Measured - Gold - - -
Indicated 7.1 Gold 315,000 13.1 132,000
Total M&I 7.1 Gold 315,000 13.1 132,000
Inferred 6.5 Gold 914,000 15.4 453,000
Table 5-2: SEWC Mineral Reserve Estimate for Frontino Gold Mines (FGM), effective
date 9 June 2010
Cut-off Grade Tonnes Grade Metal
Classification Type
g/t Au t (g/t) Au oz
Proven - Gold - - -
Probable 7.1 Gold 210,000 13.3 90,000
Total M&I 7.1 Gold 210,000 13.3 90,000

Page 22 of 168
5.3.2 SRK 2012 Estimate
In March 2012, SRK reported a Mineral Resource Estimate for the Segovia Project. Data
quality, drillhole spacing and the interpreted continuity of grades controlled by the veins and
high grade shoots allowed SRK to classify portions of the veins in the Measured, Indicated and
Inferred Mineral Resource categories respectively. The reported resource has been further sub-
divided into material within the remaining pillars, and the longer-term resource material outside
of the previously mined areas. SRK has defined “pillars” to indicate all material which exists
between existing development which has yet to be extracted and this includes the historical
pillars within old stoped areas. In fact, the pillar resource has all been allocated to the Inferred
category, as a function of inaccuracies in the pillar surveys owing to a relatively unknown extent
of pillar extraction activity by Company-organised cooperative miners.
Table 5-3 gives SRK’s Mineral Resource Statement for the areas not yet mined. Table 5-4
gives SRK’s Mineral Resource Statement for the pillars remaining in the mined out areas. This
is sub-divided into vein areas and the areas allocated for cooperative mining. The total Mineral
Resources therefore is a combination of that given in both Table 5-3 and Table 5-4.
Table 5-3: SRK Segovia CIM Long-Term Mineral Resource Statement as of 2 March 2012
at 3 g/t Au cut off**
Grade Metal
Quantity
Vein Category Au Au
t g/t oz
Providencia LTR Underground**
Measured 263,000 16.2 136,000
Providencia Indicated 245,000 12.3 97,000
Measured and Indicated 508,000 14.3 233,000
Inferred 243,000 14.1 110,000
Las Verticales LTR Underground**
Measured - - -
Las Verticales Indicated - - -
Measured and Indicated - - -
Inferred 480,000 19.4 299,000
SK_Techo LTR Underground**
Measured - - -
Sandra K Indicated - - -
Inferred 103,000 8.4 28,000
SK_Piso LTR Underground**
Measured - - -
Inferred 9,000 10.9 3,000
SK_Extension LTR Underground**
Measured - - -
Inferred 331,000 17.6 187,000
SK_Chumeca LTR Underground**
Measured - - -
Inferred 3,000 9.0 1,000
El Silencio LTR Underground**
Measured - - -
El Silencio Indicated - - -
Inferred 339,000 7.8 85,000
Underground LTR Combined
Measured 263,000 16.2 136,000
Segovia LTR Total Indicated 245,000 12.3 97,000
Inferred 1,508,000 14.7 713,000
**Mineral Resources are reported at a cut-off grade of 3.0 g/t Au. Cut-off grades are based on a price of USD1400 per ounce of gold and
gold recoveries of 85% for resources, without considering revenues from other metals. Mineral Resources are not Ore Reserves and do
not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate. All composites have
been capped where appropriate. The Concession is wholly owned by and exploration is operated by the Company.

Page 23 of 168
Table 5-4: SRK CIM Segovia Pillar Mineral Resource Statement as of 2 March 2012 at
3 g/t Au cut off**
Grade Metal
Quantity
Vein Category Au Au
t g/t oz
COOP0 (GCG) Underground**
Measured - - -
Providencia Indicated - - -
Inferred 127,000 15.7 64,000
COOP1 (Contrato La Provi) Underground**
Measured - - -
Inferred 157,000 17.9 90,000
COOP2 (Proyecto Roc) Underground**
Measured - - -
Inferred 145,000 26.2 122,000
COOP3 (Corte 4240) Underground**
Measured - - -
Inferred 6,000 10.9 2,000
SK_Techo Pillar Underground**
Measured - - -
Inferred 86,000 11.9 33,000
SK_Piso Pillar Underground**
Measured - - -
Inferred 9,000 10.9 5,000
SK_Chumeca Pillar Underground**
Measured - - -
Inferred 400 6.2 100
Silencio Pillar Underground**
Measured - - -
Silencio Indicated - - -
Inferred 223,000 7.9 56,000
Underground Pillar Combined
Measured - - -
Segovia Pillars Total Indicated - - -
Inferred 753,600 15.3 371,600
**Mineral Resources are reported at a cut-off grade of 3.0 g/t Au. Cut-off grades are based on a price of USD1,400 per ounce of gold and
gold recoveries of 85% for resources, without considering revenues from other metals. Mineral Resources are not Ore Reserves and do
not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate. All composites have
been capped where appropriate. The Concession is wholly owned by and exploration is operated by the Company.
At the time of reporting, SRK noted the following in relation to the Mineral Resource:
x Current grade estimates at Providencia indicate that the high grade shoots continue into
the neighbouring property to the east.
x Mineral Resources have been reported in situ based on modelled geological boundaries
and do not include the additional material required to be mined by the minimum stoping
width.
x Mineral Resources in pillars in the mined out areas have all been reported in the inferred
category as the remaining volume is uncertain given artisanal mining activity. Should the
Company be able to provide suitable evidence in the form of a more detailed survey, this
material could potentially be re-classified to reflect a higher confidence on the Resource
Statement.

Page 24 of 168
x A portion of the El Silencio Mineral Resource currently lies below the flood line and
therefore cannot currently be accessed. SRK understands that the Company plans to
pump the water from these areas and, on this basis, SRK agrees that this mineralisation
has reasonable prospects for economic extraction and can therefore be reported as a
Mineral Resource as defined by CIM Standards.
x At El Silencio, SRK has assumed all vein width measurements are vertical
measurements and therefore has not currently applied any adjustment factors to account
for differences between plan and the true dip of the mineralisation.
x SRK has only reported Measured and Indicated Mineral Resources for the vein areas
(namely Providencia) where the Company has undertaken a sufficient level of verification
sampling, and completed its own diamond drilling.
On the 2 April 2012, SRK produced a Mineral Resource Statement for the Carla Project,
reported at a cut-off grade of 3.0 g/t Au. Cut-off grades are based on a price of USD1400 per
ounce of gold and gold recoveries of 85% for resources.
Table 5-5: SRK Carla Mineral Resource Statement as of 2 April 2012 at 3 g/t Au cut-off**
Grade Metal
Quantity
Category Au Au
t g/t oz
Carla Underground**
Measured - - -
Indicated 245,000 7.5 59,000
Inferred 341,000 4.9 54,000
**Mineral Resources are reported at a cut-off grade of 3.0 g/t Au. Cut-off grades are based on a price of USD1,400 per
ounce of gold and gold recoveries of 85% for resources, without considering revenues from other metals. Mineral
Resources are not Ore Reserves and do not have demonstrated economic viability. All figures are rounded to reflect the
relative accuracy of the estimate. All composites have been capped where appropriate. The Concession is wholly
owned by and exploration is operated by the Company.
5.4 Historical Production
It has previously been reported that the historic production from FGM between 1869 and 2010,
contained more than 4.6 million ounces of gold.
The Project has been in continuous production for over a century and the Company’s
production decision, including the expansion of the Project through Pampa Verde, has not been
based on mineral reserves demonstrating economic feasibility and technical viability.
Historically, projects in which the production decision is not based on mineral reserves have a
much higher risk of economic and technical failure. If such failure occurs, it could have a
materially adverse impact on the Company’s future profitability.
Total gold production by the Providencia, El Silencio and Sandra K mines between 2000 and
2012 is given in Table 5-6, with the majority of production noted to be from the Providencia
Mine. Production in 2012 was reported to be 260,806 t with an average grade of 11.0 g/t Au
and containing 97,061 ounces of gold.

Page 25 of 168
Table 5-6: Summary Statistics for Total Gold Production at Providencia, El Silencio and
Sandra K Mines 2000 – 2012
Segovia Total Production Statistics for Providencia, El Silencio and Sandra K Mines 2000 - 2012
Gold (ounces)
Year Tonnes (t) Rec (%) Gold Grade (g/t)
Total Smelter
2000 149,925 85,146 85,223 100.1 17.7
2001 170,135 50,996 49,773 98.0 9.7
2002 168,220 42,353 42,692 101.0 7.8
2003 144,141 42,794 37,830 88.0 9.2
2004 158,304 51,553 48,871 91.0 10.1
2005 178,528 54,858 49,677 91.0 9.6
2006 202,168 60,873 52,290 86.9 9.4
2007 218,963 40,673 38,244 94.0 5.8
2008 185,816 33,199 33,460 100.8 5.6
2009 175,230 61,136 55,216 90.3 10.9
2010 149,214 46,389 50,313 92.2 9.8
2011 173,684 64,544 69,179 93.3 6.0
2012 260,806 97,061 79,177 81.6 11.0

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6 GEOLOGICAL SETTING AND MINERALIZATION

The Project Licence boundaries are separated into a number of identified exploration prospects
and operating mines, which all form part of the Segovia-Remedios gold district.
6.1 Regional Geology
The Segovia-Remedios gold district is located in and around the Municipalities of the same
names within the Colombian Central Cordillera. This region is dominated by metamorphic and
igneous rocks which are broadly orientated north-south. The region also contains minor/
localised deposits of unconsolidated alluvial material and the prevailing climatic conditions have
resulted in the formation of a thick layer of yellow to brownish saprolite which may exceed 60 m
in depth.
The district is hosted by the Segovia Batholith of granodiorite to diorite composition (Gonzalez,
2001; Alvarez et al, 2007), Figure 6 1. The batholith is 10 km wide at Segovia and is elongated
N-S. The region is structurally controlled by a number of faults oriented north-south to 350°,
most notably the Otú-Pericos, which post-dates the Nus and Bagre faults, and these are all
considered to be younger than the Lower Cretaceous and form part of the regional Palestrina
Fault System that bound the Segovia Batholith.
The Otú fault is steeply dipping, trends 340° and has a lateral-sinistral displacement of some
66 km. It defines the contact between Palaeozoic rocks comprising quartz-sericite and graphitic
schist, metavolcanic schist of the Cajamarca Group with felsic gneissic intercalations and the
Cretaceous Antioquia Batholith and Santa Isobel stock to the west and the Segovia Batholith,
and Cretaceous basic volcanic rocks and sediments and minor Palaeozoic gneiss, micaceous
schist, quartzite, marble and associated calcareous rocks to the east.
The Bagre fault trends 020° in the south and 010° in the north and has a lateral sinsitral
displacement interpreted to be >50 km. The Nus fault trends 350° and was interpreted to have a
steep dip and lateral dextral displacement >50 km.

Page 27 of 168
Figure 6-1: Regional geological map illustrating the location of the Segovia mining
concession
The Segovia Batholith (160 ± 7 Ma K/Ar in hornblende; Feininger et al, 1972) comprises a total
2
of some 5600 km orientated north-south to 030°, and predominantly comprises grey-green
medium grained diorite to quartz diorite with local rapakivi textures and variations from quartz
monzonite to granodiorite and gabbro (González and Londoño 2002). It is intruded by dolerite
and andesitic dykes along discontinuities that are considered to comprise one of the controls of
the gold mineralisation.
Faulting and fracturing within the Segovia batholith forms an important control on mineralisation
and is considered to comprise three sets:
(i) early compression to produce 010-040º towards 030º and vertically dipping at 310-295º
represented by diorite-andesite dykes and quartz-pyrite veins of 0.15 to 2.60 m in width
that have been mined for gold mineralisation associated with sphalerite, galena,
chalcopyrite, and rare scheelite, pyrrhotite, with variable calcite content;

Page 28 of 168
(ii) clean fractures at 310-270º which dip 25-30º towards north; and
(iii) vertically dipping fractures which trend 325º (González and Londoño 2002).
6.2 Local Geology

6.2.1 Segovia Licences
Overview
The only published description of the geology of Frontino is by Tremlett (1955) who described
the structure of the mineralised veins. There are also several unpublished reports for FGM
(Bonoli, 1960; Wieselmann & Galay, 1982; Castaño Gallego, 2008; Muñoz, 2008).
The Frontino mines are hosted entirely by granodiorite/granitoid rocks of the Segovia batholith
that has been recorded as being of late Jurassic age but some dating of rocks in the region
suggest it may be much younger and mid- to late-Cretaceous in age (~ 68.4 ±5.5 Ma to 84.1 ±
5.5Ma, Echeverry et al., 2009). The granodiorite is coarse grained (about 5 mm), equigranular
and fairly dark coloured with white plagioclase, quartz and dark green hornblende.
In the portion of the Segovia-Remedios district covered by the Project, three principal phases of
deformation recognised, comprising:
x an early phase of deformation associated with the emplacement of a series of both steep
and shallowly dipping, pre-mineralisation dykes (D1),
x a stage of broadly N-S to NNE-SSW oriented compression (D2), and
x a phase of E-W to WNW-ESE oriented post-mineralisation compression (D3).
Gold mineralisation is hosted by a series of quartz-sulphide veins. The main sulphides present
are pyrite, chalcopyrite, sphalerite, and galena with higher grades seemingly related to high
proportions of the latter two. The veins themselves exhibit three main trends:
x N-S to NE strike, with a dip of 30° E;
x E-W to NW strike, with a dip 30° to N or NE; and
x NW strike, with a dip of 65-85° NE. These occur on the west side parallel to a NW -
trending segment of the Otú Fault.
The low angle veins have formed along thrust faults. These often have thrust duplex structures,
resulting in pinching and swelling of the veins; these is no evidence to suggest any systematic
change in grade through these pinch and swell structures. The average width of the quartz
veins is 0.95 m, with a maximum width of up to 9.00 m. On occasion, a clear intersection
lineation can be observed in the veins plunging toward 060°, sub-parallel to the plunging high
grade mineralisation observed in the Mineral Resource modelling suggesting the importance of
cross cutting structures.
The quartz veins commonly follow basic dykes or sills with a width of about 2-3 m. These dykes
can be found in the hanging wall or the foot wall material, both, or in the middle of the
mineralised vein. The dykes are basaltic and have coarse phenocrysts (7 mm) of white
plagioclase in a fine grained, dark-coloured matrix.

Page 29 of 168
There is always a close spatial relationship between the veins and dykes, and the dykes are
used as a guide to mineralized structures during exploration drilling or drifting.
The mineralised zone observed in drill core for Providencia is shown in Figure 6-2 and Figure
6-3, as photographed by SRK, and illustrated in Figure 6-4 as procedurally documented by the
Company. Figure 6-5 shows the typical thickness of the Providencia and Sandra K veins as
exposed in the underground workings, whilst Figure 6-6 presents the well documented
relationship between the mineralised vein and mafic dykes as observed underground at El
Silencio. Figure 6-6 also provides an image of the recently dewatered Mine Level 29 at El
Silencio, and typical thickness of the mineralised zone is illustrated.
The veins are offset vertically by more than 50 m by high angle faults which show a reverse
sense of displacement. The principal fault trends are NE with dip of 65° to 85° NW, and NW
with dip of 85° W to 65° E.
The geological history is summarized as follows:
1. Intrusion of granodiorite.
2. Development of low angle fault system.
3. Intrusion of basic porphyry dikes along the low angle faults.
4. Formation of quartz-sulfide veins along the low angle faults.
5. Late stage high angle reverse fault movement causes vertical off-sets of the quartz veins.
The structural data and dating results indicate that the intrusive-related gold-rich, base metal
mineralisation accompanied early-Tertiary deformation related to oblique accretion of outboard
terranes (D2) and was subsequently reactivated during late-Miocene post-mineralisation
deformation (D3, the event associated with porphyry Au-Cu mineralisation in the Cauca belt).
The Providencia veins discussed in this report have a typical strike of 100° E dipping 30º to the
NE and can be traced for around 2 km, while the Las Verticales veins strike 1.3 km on a trend
of 140° S and dip 75º to the NE.. The modelled Sandra K and El Silencio veins show typical
strike orientations, dips and trace lengths of: 009° N, dip 29º towards E, 1.3 km (Sandra K); and
050° N, dip 27º towards E, 2.2 km (El Silencio).

Page 30 of 168
Figure 6-2: Mineralised Zone at Providencia, intersected in drillhole DS0089 at

453.20 m, as observed by SRK
Figure 6-3: Significant Mineralisation at Providencia, intersected in drillhole DS0089

at 453.54 m, as observed by SRK
Figure 6-4: Procedural Core Photography for drillhole DS0089 completed by the
Company during data acquisition

Page 31 of 168
Figure 6-5: Typical thickness of the Providencia (left) and Sandra K (right) veins, as
exposed in underground workings
Figure 6-6: Vein exposures in underground workings at El Silencio showing

relationship with dykes (left) and typical vein thickness at dewatered Mine
Level 29 (right)
Mineralisation Relationships
SRK noted from discussions with the Company and during review of the drillcore at Sandra K a
relationship exists between the presence of galena and significantly elevated gold grades (most
notably in the drilling completed down-dip, towards the east of the mine (Sandra K Fault Block)),
as illustrated in Figure 6-7.

Page 32 of 168
Figure 6-7: Presence of galena related to elevated gold grades at Sandra K, in

drillhole DS0130 showing 30 cm at 311.34 g/t gold
During the site visit, SRK investigated the relationship by reviewing a range of mineralised
cores from Sandra K where galena had been logged (and where galena was absent) in the
database. Analysis of the observations suggested that whilst gold mineralisation in general is
typically related to the presence of sulphides (most notably pyrite), the most significantly
elevated grades in the Sandra K Fault Block are relatively consistently related to the presence
of galena, whereby the greater abundance of galena tends to correlate with a higher gold
grades.
Given the positive outcome from the investigation, SRK has used the geological relationship
between galena and gold grade to guide the orientation of potential high grade shoot in the
Sandra K Fault Block during grade estimation.
SRK recommends going forward that the Company records the percentage of visible galena
during logging, and re-logs this information for the latest drill program, to further test (and hence
attribute confidence to) the relationship between abundance of galena and gold grade.
Structural Analysis
In writing of the following section, SRK has relied on (or further interpreted) information provided
by the Company, and summarised the details where possible.
SRK notes that detailed structural analysis per vein at the Segovia project has been completed
by the Company’s external structural consultant (Dr Tony Starling), considering controls on
dyke emplacement, phases of quartz veining and deformation, vein morphology and
termination, and kinematic evolution of the veins.

Page 33 of 168
Most significantly (from a grade distribution perspective), review of the kinematic evolution of
the veins within the Segovia-Remedios District has allowed an initial understanding of and
interpretation for the orientation of the high grade shoots reflected in the close spaced sample
data of mineralised structures. It is considered that the NE to ENE-trend of the high grade
shoots in the principal veins reflects the NNW-trending compression direction (relating to the
activation of NNW-trending Nus fault system around the western margin of the granodiorite
batholith) which, whilst also appearing to represent the main stage of vein formation and
mineralisation at Providencia, caused strong deformation of the original vein contacts. In
consequence, phases of folding, shearing and thrusting occurred along the ENE corridors,
orthogonal to the compression direction and hence directing hydrothermal fluid flow to form the
main high grade shoots.
Continued deformation and shearing along the Nus fault system resulted in the development of
NNW-trending steep dextral faults that hosted quartz veins, relatively low grade in terms of
mineralisation, which form the Las Verticales veins.
Figure 6-8 shows a sketch model provided by the Company which illustrates the NNW-trending
compression direction, and the main structural components influencing syn-mineralisation
deformation on the principal veins.
Figure 6-8: Sketch Model for the Syn-Mineralisation Deformation at Segovia, provided
by the Company (sourced Telluris Consulting, January 2013)

Page 34 of 168
6.2.2 Carla Licences
Most of the Carla Licences (including the area pertaining to this resource estimate) are hosted
entirely by the Segovia Batholith and occupy land to the south of the Segovia Mining Operation.
Rocks of the batholith are largely observed as coarse grained homogenous granodiorite
containing narrow (1-2 m) later stage diorite dykes. Some occurrences of more aplitic dykes are
also noted.
The mineralised quartz-sulphide veins often occupy the same discontinuities as these dykes
and form within two main orientation groups including:
x strike 350°-010° and dip 40-55° towards the east; and
x strike 050°-065° and dip 60-80° towards the southeast.
The mineralisation is considered to be very structurally controlled, with the main mineralised
corridor being defined by the Otú fault in the west and the Nus fault in the east.
The attitude of some the veins suggest that, while a structural corridor is considered to have a
sinsitral movement, there has also been reactivation with an extensional/ dextral stress
environment taking precedence during mineralisation.
Historical exploration and mining has suggested that the ground containing the line of
intersection of these two dominant vein orientations can host significant higher grade zones
within the plane of the veins. The line of intersection is suggested plunge at 30° to 150° (SE).
While no such arrangement has been noted from the Carla Licences to date, this hypothesis
exists as a notable exploration target.
Gold mineralisation at the Carla Project is hosted in quartz veins that vary from a few
centimetres to more than 3 m in thickness, with an average of 1 m and with dips varying from
30° to vertical. The host rock is largely granodiorite with occasional variations of diorite, quartz
diorite and tonalite. The gangue mineral of the veins is quartz with subordinate calcite recorded
in a number of localities. Accessory minerals present are pyrite, sphalerite, galena, chalcopyrite,
bornite, magnetite, and traces of molybdenite. Pyrite is the most dominant sulphide.
Many of the veins exhibit an epidote/ chlorite alteration halo. This is particularly evident within
the Carla Project mine exploration adit.
SRK Exploration Ltd (2010) has detailed at least four phases of fluid movement during the
mineralisation of the Carla Project. The petrogenesis of the auriferous veins is considered as
follows:
1. Precipitation of quartz with minor disseminated pyrite.
2. Influx of massive sulphide bearing fluids overprinting earlier quartz.
3. Deposition of gold along with secondary pyrite and galena.
4. Late stage minor epithermal mineralisation possibly remobilising gold mineralisation.
The mineralised structure located at the Carla Project mine discussed in this report has a typical
strike of 002° N dipping 36° to the E and can be traced for around 900 m.

Page 35 of 168
Figure 6-9 provides an image of the typical form of the sulphide rich mineralised quartz vein
observed in the GCM exploration adit at the Carla Project.
Figure 6-9: Mineralised quartz vein within the GCM exploration adit (March 2012)

Page 36 of 168
7 DEPOSIT TYPES
Gold mineralisation at Segovia occurs in mesothermal quartz-sulphide veins hosted by a
batholith. They have been classified as “Oxidized Pluton-Related Gold Deposits” (Sillitoe,
2008), are thoughts to have formed after the cooling of the batholith and may have a genetic
relationship with the batholith as well as with the regional stress regime related to the Otú fault.
The deposit bears a strong resemblance to the Pataz deposits in northern Peru. The Pataz
deposits have been described as orogenic gold deposits or mesothermal gold deposits, and
gold mineralisation has been linked to a large-scale thermal event that occurred in a thickened
collisional belt undergoing uplift tectonics, rather than related to magmatism (Haeberlin, 2002;
Haeberlin et al, 2002, 2004).
Mineralisation at Pataz occurs over a distance of 160 km in the Pataz Batholith. This is of
granodiorite to monzonite composition of calc-alkaline affinity and Carboniferous age (330-327
Ma). Mineralisation is dated at 314-312 Ma, some 18-15 Ma younger than the batholith. The
main similarities with Frontino are mesothermal gold mineralisation in quartz-sulphide veins with
a low dip of 20 to 45° to the east, and the predominant N to NW-strike. The main differences
are the older age of Pataz, the stronger wall-rock alteration at Pataz, and the absence of pre
mineralisation basic dykes along the vein structures.
Production at Pataz has been about 6 Moz of gold in 100 years from underground mines. This
is similar to the production from Frontino, although at Pataz this is spread out over a much
longer strike length. Most of the mines at Pataz have been developed in the past two decades.
The district produced 396,371 oz gold in 2004 from three privately-owned mines which are,
from north to south, the Poderosa Mine, the Parcoy Mine and the Gigante Mine.

Page 37 of 168
8 EXPLORATION
This section summarises the work completed at the Segovia Project to date.
8.1 Topography
The Company has acquired a digital topography surface from the former owners of the Segovia
project (FGM). The surface is reasonably low resolution, and is currently undergoing validation
to improve accuracy. Although relatively basic, the current data provides a reasonable surface
for plotting exploration and mapping results and for constraining the surface projection of
modelled veins.
At Carla the Company have acquired 1 m resolution digital terrain to aid geological modelling,
which provides a reasonable surface for plotting exploration and mapping results and for
constraining the surface projection of modelled structures.
A more accurate topographic survey for the Segovia licence has been recommended to the
company for future work.
8.2 Historical Exploration
It is understood that the previous owners of the Segovia Project (FGM) did not complete any
regional surface geological mapping, geochemistry, nor surface or airborne geophysics.
Historical exploration data is limited to underground mapping and sampling.
8.2.1 Underground mapping and sampling
The historical underground channel sampling database made available to SRK consists of more
than 75,000 samples and is understood to incorporate data from the past 30 years. The
database provided is largely restricted to vein samples only, with the hanging wall, footwall and
face ‘composite’ data stored separately.
Channel sampling was carried out by a pair of samplers instructed by the mine geologist.
Samples are taken vertically across the vein at approximately 2.0 m intervals and extracted
from both walls of the underground drive, in raises and from a proportion of the stoped areas.
Samples were taken from the wall of the drive in a continuous channel by hand using a lump
hammer or chisel. The sample was collected from a plastic sheet inside a wide bucket, and the
sample sheet was replaced every few samples. The sample lengths/widths are then measured
vertically and are therefore not true thicknesses.
The sample is then quartered by hand by separating the sample into quarters and discarding
opposite quarters. Some of the larger pieces of rock are broken by a hammer during the
quartering process. The sample, averaging around 1-2 kg is then placed into a small plastic bag
with the sample number torn from a book of consecutively numbered assay tags where location
and type are recorded. No geological description was made. The mine samplers filled out a
daily sample sheet with sample number, sample location and sample type.
Sample locations are limited to an X and Y coordinate, plotted in reference to mine survey pegs
(with X, Y and Z data) which are located in the roof of the underground development. Survey
and sample data were plotted in 2-D using AutoCad.

Page 38 of 168
Given the presence of thrust displacements along a number of the fault planes at Providencia,
there exists in the database a proportion of overlapping data that cannot be split in to upper or
lower displacement surface as a result of a lack of elevation data. Although it has not been
possible to accurately position these overlapping data points, there is likely to be only a limited
overall effect on the grade distribution as a result of the significant size of the database.
Mine wall and face mapping was drafted on to paper sections and stored in the Mine Geology
Department.
SRK notes that the mapping data has now been made available to both Mining and Exploration
Geology Departments.
8.3 GCM Exploration

8.3.1 Geological Mapping
It is understood that GCM have implemented a surface geological mapping exercise of the
property at 1:2,000 scale, with the intention of compiling historical mine data on to the map once
complete.
8.3.2 Geophysical Survey
An Induced Polarisation (“IP”) survey has been considered for the Las Verticales Veins. Initial
indications from testwork undertaken by GCM elsewhere within the Segovia Region (at the
Remedios Mine) suggest that the veins do not shown a strong response to the IP survey,
relating to variable sulphide content within the veins, and thus this technique is not currently
considered a useful exploration tool.
8.3.3 Underground Sampling
The Company exploration staff commenced a underground channel sampling programme at

Providencia and Sandra K mines, in an attempt to verify historical underground data and
increase the size of higher confidence quality control checked samples in the exploration
database.
Sampling has been in underground development drives, development raises and from historical
pillars. Samples are taken at 5 m intervals (where possible) from the vein, hanging wall and
footwall from both sides of the drive depending on the exposure of the vein (complete
exposure).
A sampling demonstration was provided for SRK during the 2011 site. The methodology
consists of marking and subsequently sampling a vertical reference line (spray paint) down
across the hanging wall, quartz vein and footwall. Samples were extracted using a chisel, from
the bottom of the face up to avoid contamination, and are collected on to a plastic sheet at the
bottom of the face.
SRK recommended the Company revises the underground sampling protocol in line with other
operation run by the Company. The updated procedure includes marking and subsequently
sampling a vertical reference line (spray paint) down across the hanging wall, quartz vein and
footwall. A diamond saw is then used to cut the channel at regular intervals (5 cm). Samples
were then extracted then using a chisel, from the bottom of the face to the top, and are
collected on to a plastic sheet at the bottom of the face.

Page 39 of 168
In all sampling completed by the Company, a clean plastic sheet is used to collect each sample
to prevent contamination. The samples are bagged and labelled in preparation for dispatch to
SGS Medellin for sample preparation and SGS Peru for Fire Assay. Sample numbers, lengths
and locations in reference to survey pegs are logged on to sample sheets (Figure 8-2) which
are subsequently typed in to excel in the Exploration Department and uploaded to the central
database.
Figure 8-1: Channel Sampling Completed by Company during 2013 sampling

programme

Page 40 of 168
SRK noted in during an underground visit that in some cases sampling has been taken where
the vein intersection has not been complete, such that the vein goes into the floor or roof of the
drive. SRK highlighted the potential issues with how this material may be treated in the
modelling and therefore a full review of the sampling cards (Figure 8-2) which highlight under
the Observations if the vein is located in the roof or the floor (“veta sigue en el piso”). SRK
recommended that the Company review all the sampling cards and in the case of the vein being
located as the first or last sample, revisit the channels underground to confirm if the vein is
complete sample.
Figure 8-2: Logging Sheets used for the Company Channel Sampling Programme
The sampling completed by the Company has been focused on the lower portions of the
Providencia and Sandra K operations. No sampling has currently been completed by the
Company at El Silencio. Figure 8-3 shows the distribution of sampling per company used in the
exploration database. The data has been sourced from four companies over the history of the
database are summarised in Table 8-1 below:
Table 8-1: Summary of Sampling Sources in Exploration Database

+ Description
FGM Frontino Goldmines
MRC Medoro Resources
GEM Mine Samples (Zandor) assayed at Mine Laboratory
GCG GCM Gold Exploration (Zandor) assayed at SGS

Page 41 of 168
Note that SRK has subdivided the Zandor sampling into mine samples which represent chip
sampling following the historical sampling procedures (sent only to the mine laboratory) and
channel samples, following the procedures outlined in this current report and sent (with the
exception of 27 samples) to SGS laboratory in Medellin.
The underground database used in the 2012 and additional samples taken/digitised are
summarised in the Table 8-2. The table is broken down by mine/vein names and includes the
additional sampling completed during 2013 on the small historical operations in the Las
Verticales portion of the Project.

Page 42 of 168
Table 8-2: Summary of Underground Sampling (Mine and Channel) at Segovia

FGM FGM GEM GEM MRC MRC GZC GZC
Grand Total
New Original Subtotal New Original Subtotal New Original Subtotal New Original Subtotal
Total Total Total Total Total Total Total Total Total Total Total
Count Count Count Count Count Count Count Count Count Count Total (m) Count Count Count Total (m)
(m) (m) (m) (m) (m) (m) (m) (m) (m) (m) (m)
El Cariaro 2 0.9 2 0.9 2 0.9
- - - - - - - - - - - - - - - - - - - -
El Higueron 5 4.8 5 4.8 5 4.8
- - - - - - - - - - - - - - - - - - - -
El Retorno 2 1.7 2 1.7 2 1.7
- - - - - - - - - - - - - - - - - - - -
El Silencio 22,109 29,124 5,016 5,346 27,125 34,471 - 27,125 34,470.60
- - - - - - - - - - - - - - - - -
La Golondrina 1 0.4 1 0.4 1 0.4
- - - - - - - - - - - - - - - - - - - -
La Ilusion Del
2 2.5 2 2.5 2 2.5
Mandarino - - - - - - - - - - - - - - - - - - - -
La Limosna 1 1.7 1 1.7 1 1.7
- - - - - - - - - - - - - - - - - - - -
La Manuela 1 2.5 1 2.5 1 2.5
- - - - - - - - - - - - - - - - - - - -
La Melona 2 2.2 2 2.2 2 2.2
- - - - - - - - - - - - - - - - - - - -
La Provincia
2 4.2 2 4.2 2 4.2
(La Trampa) - - - - - - - - - - - - - - - - - - - -
La Sorpresa 1 1.1 1 1.1 1 1.1
- - - - - - - - - - - - - - - - - - - -
Las Aves 1 7 6.1 7 6.1 7 6.1
- - - - - - - - - - - - - - - - - - - -
Las Aves 2 1 0.8 1 0.8 1 0.8
- - - - - - - - - - - - - - - - - - - -
Los Viejitos 1 1.2 1 1.2 1 1.2
- - - - - - - - - - - - - - - - - - - -
Providencia 15 11 36,713 36,304 36,728 36,314 1,782 1,102 1,782 1,102 290 208 290 208 586 1,021 586 1,021 39,386 38,645.00
- - - - - -
San Mart¡n 2 2.6 2 2.6 2 2.6
- - - - - - - - - - - - - - - - - - - -
San Miguel
4 4.7 4 4.7 4 4.7
Arcangel - - - - - - - - - - - - - - - - - - - -
Sandra K 626 325 7,191 5,241 7,817 5,566 660 255 660 255 279 198 279 198 219 430.7 219 430.7 8,975 6,450.10
- - - - - -
Surface 3 1.1 3 1.1 3 1.1
- - - - - - - - - - - - - - - - - - - -
Segovia 22,750 29,460 48,920 46,891 71,670 76,351 2,442 1,357 2,442 1,357 569 406 569 406 836 1,485 836 1,485 75,523 79,604
- - - - - -

Page 43 of 168
Figure 8-3: Plan view showing distribution of underground sampling at the Segovia Project

Page 44 of 168
8.4 SRK Comments
Gold estimation at the Segovia on a local scale is highly influenced by the underground
sampling programme. SRK considers the underground sampling to have varying levels of
confidence based on the methods used in the sampling and in the selection of laboratories. The
lowest confidence is placed on historical sampling where limited information is available as to
the quality of the chip sampling, and to the laboratory performance. Since the Company
acquired the Project, the implementation of a more routine channel sampling protocol
commenced, inclusive of a defined QAQC programme. SRK completed a site inspection during
2011, at which a demonstration of the sampling methods was shown. Following discussions
with the Client and, based on the Client’s experience on other projects, the decision was taken
to modify the procedure to include the use of a diamond saw to cut regular intervals of the
channel to improve the consistency in the sample volumes taken per channel. SRK did not view
the current procedure as no active sampling was being completed at the time of the site
inspection; however, during underground site visits SRK witnessed and reviewed numerous
channel cuts. SRK concluded that these channels represented significantly higher quality data
in the database, with the exception of the occasional sample which was noted as continuing
into either the floor or the roof of the development drive. The observations have been recorded
on the daily sampling cards, and therefore the Company has completed an audit of any
channels where the either the first or last sample is recorded as “vein”. This information has
been transferred to the electronic database supplied to SRK for use in the current estimate.
Overall, SRK concludes that the underground sampling methodology does not introduce any
significant bias and thus is suitably reliable for the purposes of the data verification programme.
Areas which are reliant on historical sampling such as El Silencio are limited in terms of the
classification to lower levels of confidence.

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9 DRILLING
9.1 Historical Drilling Programmes
9.1.1 Introduction
It has been reported in the 2010 NI43-101 compiled by SEWC, the majority of diamond drilling
carried out by FGM was for resource development at the operating mines within the
Concession. Limited diamond drilling was carried out for exploration to test extensions to known
veins. The main success of exploration drilling was the definition and subsequent development
of the Sandra K mine, located towards the northeast of the Providencia mine. Approximately
47,000 m of drilling from both surface and underground is reported to have been completed
between1981 to 2009.
For the 2013 Mineral Resource Estimate, whilst the Company has elected to include this data
within the sample database (on the basis of ongoing validation of the collar and survey
information), relatively few drillholes have assay information and thus the primary use of the
FGM data has been limited to a modelling guide during geological interpretation. SRK notes
that the FGM data which is considered by the Company to have been superseded by drilling
completed during the latest exploration program has been excluded from the database.
A summary of the FGM drilling received by SRK is shown in Table 9-1.
Table 9-1: Summary of FMG Drilling (Historic drilling)

Licence Area No. Holes Total Metres Min Length Max Length
Surface Drilling
Cordoba 6 1,757.5 141.3 419.3
Campo Alegre 1 599.2 599.2 599.2
Cecilia 1 363.9 363.9 363.9
Cogote 31 6,284.9 75.2 354.8
Cristales 8 2,417.8 210.8 461.1
Dola Ana 3 1,144.8 337.5 452.4
El Silencio 4 951.5 54.0 441.1
Garibaldi 1 196.8 196.8 196.8
Juan Criollo 15 2,693.4 73.8 313.7
La Salada 15 1,851.1 22.3 299.2
Manzanillo 2 179.1 76.2 102.9
Segovia Project Concession
Pelitas 1 178.8 178.8 178.8
Providencia 65 14,369.5 57.4 455.2
Sandra K 4 875.1 146.0 328.7
Sucre 13 2,319.0 45.3 360.7
Vera 6 936.4 28.4 337.5
Underground Drilling
Cogote 3 222.0 49.8 103.9
El Silencio 194 12,967.9 4.9 266.9
Providencia 142 7,222.2 2.0 301.9
Sandra K 44 2,376.3 6.7 248.7
Sucre 1 33.5 33.5 33.5
Vera 14 506.6 4.6 129.8
Grand Total 574.0 60,447.1 2.0 599.2
9.1.2 Hole orientation and survey data
The drilling from surface is reported to have been orientated broadly perpendicular to the target
vein (access permitting); however, very few collar surveys are available and thus the large
majority of traces are shown in the database as vertical. Directional surveys were not carried
out during the drilling program.

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Underground drilling appears to have largely been completed from cross-cuts and platforms on
the main levels. In places, fan drilling has been completed to maximise the information made
available from a single drill site.
9.1.3 Diamond drilling procedure
Surface drilling was undertaken using a Diamec 262D rig (owned by FGM) which had a 1,000 m
capacity. The core diameters used were 36 mm and 46 mm. The drill used conventional
diamond drilling rather than wire-line, resulting in the pulling of drill rods to recover the core
barrel. During a site inspection in May 2010, SEWC did not observe any drilling recovery factors
that could materially impact the reliability of the drilling results.
Relatively limited background procedural information has been made available to SRK in terms
of the historic drilling.
9.2 GCM Drilling Programme

9.2.1 Introduction
During the latest exploration program a total of 85 holes totalling some 21,570 m have been
completed by the Company at the Segovia Project, designated the ZC-series hole in the
database provided. The 2013 programme included 18 holes for 7,524 m at Providencia, 39
holes for 8,837 m at Sandra K and 28 holes for 5,209 m at Las Verticales (inclusive of the “El
Silencio South” holes which are also situated on the Las Verticales trend).
All completed drilling has been made available for SRK in producing its resource estimate. A
summary of the GCM holes is provided in Table 9-2. The table has been subdivided by the
different mine/veins and by those available since the previous Mineral Resource Model (as a
result of new drilling or additional validation).

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Table 9-2: Summary of Drilling Information per Project Area Used by SRK as Basis for Geological Models / Mineral Resource Estimates
FGM FGM Total GEM GEM Total GZC GZC Total Grand Total
New Original Subtotal New Original Subtotal New Original Subtotal TOTAL
Total Total Total Total
Count Total (m) Count Count Total (m) Count Count Count Count Total (m) Count Total (m) Count Total (m) Count Total (m)
(m) (m) (m) (m)
Campo Alegre 1 599 - - 1 599 - - - - - - - - - - - - 1 599
Cecilia 1 364 - - 1 364 - - - - - - - - - - - - 1 364
Cogote 3 222 31 6,285 34 6,507 - - - - - - - - - - - - 34 6,507
El Silencio
194 13,321 - - 194 13,321 - - - - - - 9 1,574 11 2,882 20 4,456 214 17,777
(South)
La Salada 15 1,851 - - 15 1,851 - - - - - - - - - - - - 15 1,851
Manzanillo 1 103 - - 1 103 - - - - - - - - - - - - 1 103
Providencia 203 20,638 - - 203 20,638 - - - - - - 18 7,524 25 10,646 43 18,170 246 38,808
Sandra K 44 2,376 4 875 48 3,251 6 706 - - 6 706 39 8,837 - - 39 8,837 93 12,794
Sistema Las Aves - - - - - - - - - - - - 19 3,635 51 19,025 70 22,660 70 22,660
Sucre 15 2,446 - - 15 2,446 - - - - - - - - - - - - 15 2,446
Segovia 477 41920 35 7160 512 49,080 6 706 - - 6 706 85 21,570 87 32,553 172 54,123 690 103,909
*Note that drillholes which represent historic sampling of other minor veins within the Licence area (that do not spatially occur within areas considered for SRK’s 2013 Mineral Resource Estimate)
have been excluded from the summary table.

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9.2.2 Collar surveys
All drillhole collars have been surveyed using a precision GPS which is based on Total Station
measurements, and have been located to a high degree of confidence in terms of the XY and Z
location. This data has been provided to SRK in digital format using UTM grid coordinates.
9.2.3 Downhole surveys
Downhole geophysical surveys are carried out by the contractor ‘Weatherford’. The downhole
tool has a Verticality Sonde instrument that measures azimuth and inclination every 5 m by two
level cells and three magnetometers. The erratic measurements in zones of casing are
evidence that the instrument is affected by magnetic rocks and the drill pipe and bits. In general,
the data collected is considered to be of high precision and accuracy suitable for use in this
resource estimation.
9.2.4 Hole orientation
All drilling undertaken by GCM on the Segovia Project has been completed from surface.
At Providencia, the drilling intersects the mineralised vein from the northeast, southwest and
(predominant) vertical orientations in attempt to intersect the vein target area with sufficient
coverage whilst remaining inside the Segovia Concession boundary. The Providencia drillholes
are plotted on sections oriented north 25° east across the principal structural control of the
deposit and spaced approximately 50 - 100 m apart. The dips range from -64º to -90º degrees,
with the average dip inclination of the holes in the order of -83º and hole lengths ranging from
140 – 550.0 m. In places fan drilling has been completed to maximise the information made
available from a single drill site.
During the latest exploration program, the GCM drilling completed at Sandra K intersects the
mineralisation largely from the east and are plotted on sections orientated south 95° east
across the strike of the target structure and spaced approximately 50 m apart. The dip of the
holes are typically either -60° or -70°, and hole lengths range from 160.0 – 326.1 m. A limited
number of boreholes with more variable orientation has also been drilled to target the north-
dipping Chumeca Vein.
The predominant drilling direction at the Las Verticales area has been to the southwest which is
perpendicular to the main orientation of the majority of the veins. The drill holes are plotted on
sections oriented north 65° east across the principal structural control of the deposit and spaced
100 – 200 m apart. The dips range from -37º to -90º degrees, with the average dip inclination of
the holes in the order of -63º and hole lengths ranging from 82.8 – 600.0 m.
Although there is a degree of concern relating to the low angle of intersection of the deep
drilling with the Las Verticales veins (resulting in a vein interval length that does not closely
represent true thickness), it is SRK’s view that the drilling orientations are sufficiently
reasonable to accurately model the geology and mineralisation based on the current geological
interpretation.
Figure 9-1 provides an example cross section at Providencia showing the relationship between
typical drilling orientation and dip of the mineralisation wireframe.

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Figure 9-1: Cross section through the Providencia deposit showing typical drillhole
orientation, looking West (August 2013)
9.2.5 Diamond drilling procedure
The drilling was performed by six Long Year rigs operated by PERFOTEC Drilling and managed
by the Company's geological team and viewed by SRK during its site visit in November 2011.
The 2012/2013 drilling programmes has been completed by two drilling contractors:
x “AKD” - AK Drilling International (Peruvian based drilling company); and
x “ENE” – Energold Drilling
SRK noted that the 2011 core recovery was good despite the fact that triple tube drilling was not
in use, however recoveries were seen to drop towards and at vein intersections. During the
latest drilling completed triple tube has been used (for the mineralised zone) by both
contractors, which has improved the overall core recoveries within the database such that such
that the average over the mineralised zone is some 93%.
Drilling was predominately performed with the use of a double tube with casing progressed to
around 12 m from surface. On average, HQ drilling continued to around the 200 m depth at
which point they were cased off and continued with NQ rods until their final depth. Drilling 'stick
ups' were periodically checked by the drilling crews.
Core was produced in 3 m core runs with recovered core lengths measured while encased in
the barrel to ensure accurate measurement of crushed material, and then placed by hand into
an open V-rail or drain pipe, where the core was re-orientated if required before being
transported to the drill site geologist. This geologist then inspected the core before transporting
the core into numbered aluminium core boxes. Cut wooden blocks were used to recorded core
depths.
All drill sites were initially located with the use of a handheld GPS with final locations recorded
by a surveyor once the drilling was completed. Each hole underwent a downhole survey once
completed.

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Figure 9-2: Core drilling at hole ZC0079 Poma Rosa, Segovia Project (November
2011)
Figure 9-3: Core drilling at hole DS0165 Providencia Vein, Segovia Project (June
2013)

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9.2.6 Core Storage
The GCM core shed is based near to entrance to the El Silencio Mine on the valley floor. SRK
visited the storage facility during the site visit and found the facility to be organised and clean,
with sufficient space for the on-going exploration.
Figure 9-4: Core Storage Facility at Segovia (November 2011)
9.3 Carla Drilling Programme

9.3.1 Introduction
No historic drilling has been completed and is therefore not available for use in the model.
During 2011, GCM delineated a drilling programme for the Carla Project, to be undertaken by
PERFOTEC the Colombian drilling contractor, which contemplated approximately 9,000 m of
drilling to be completed by end-December 2011.
To date, a total of 57 holes totalling some 10,373 m have been completed and designated with
the prefix “DRILL-“ or “DS-“ series holes, in the database provided. All completed drilling has
been made available for SRK in producing the current geological model and associated Mineral
Resource estimate. The location of the drill platforms had the objective to intercept the vein
based on 50 m sections and 100 m down-dip.
A summary of the holes drilled by the Company is provided in Table 9-3.

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Table 9-3: Summary of Drilling per Company at the Carla Project

GSG GSGTotal GZC GZC Total Grand Total
New Original Subtotal New Original Subtotal TOTAL
Count Total (m) Count Total (m) Count Total (m) Count Total (m) Count Total (m) Count Total (m) Count Total (m)
4 438.49 48 9,085 52 9,523 5 850 - - 5 850 57 10,373
*New GSG drill holes relate to three underground holes provided in the 2013 database and the addition of previously
excluded drill hole DRILL_021, which has now been included on basis on validation work and re-interpretation
completed by the Company during the latest phase of exploration.
9.3.2 Collar Surveys
All drillhole collars have been surveyed using Total Station measurements and have been
located to a high degree of confidence in terms of the XY and Z location. Data has been
provided to SRK in digital format using UTM grid coordinates.
9.3.3 Downhole Surveys
Downhole geophysical surveys are carried out by the contractor ‘Weatherford’. The selected
downhole tool has a Verticality Sonde instrument that measures azimuth and inclination at 2 m
intervals. A number of the survey measurements are reported to be slightly unreliable; however,
in general, the data collected are considered to be of reasonable precision and accuracy and
suitable for use in this resource estimation.
9.3.4 Hole orientation
All drilling undertaken by GCM on the Carla Project has been completed from surface,
intersecting the veins most typically from the east and vertical orientations, but also from the
west where required. The drillholes are plotted on sections oriented north 57° east across the
principal structural control of the deposit and spaced approximately 50 to 100 m apart. The dips
range from -30º to -90º, with the average dip inclination of the holes in the order of -70º and
hole lengths ranging from 41 to 484 m. In places, fan drilling has been completed to maximise
the information made available from a single drill site.
It is SRK’s view that the drilling orientations are reasonable to accurately model the geology and
mineralisation based on the current geological interpretation. Figure 9-5 provides a cross
section to show the typical drilling orientation and dip of the mineralisation wireframe.

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Figure 9-5: Cross section through the Carla deposit showing holes drilled from east,
west and vertically (August 2013)
9.3.5 Diamond Drilling Procedure
Drilling was performed by diamond drilling methodologies using three different rigs operated by
PERFOTEC Drilling using HQ and NQ size drill bits, and managed by the Company's geological
team (Figure 9-6). Initially, PERFOTEC used a MUKY-200 hydraulic rig during the first three
months of the programme (October – November 2010), this was replaced with a Longyear 38
rig for the remaining 11 months of the programme between December 2010 – November 2011.
During the last four months of the programme a second machine (Longyear 34) was added to
ensure the programme completed on time.
Drilling was completed on a 24 hour basis. Core was produced in 3 m core runs, with recovered
core lengths measured while encased in the barrel to ensure accurate measurement of crushed
material, and then placed by hand into an open V-rail or drain pipe where the core was re-
orientated, if required, before being transported to the drillsite geologist. This geologist then
inspected the core before transporting the core into numbered aluminium core boxes. Cut
wooden blocks were used to recorded core depths.
All drill sites were initially located with the use of a handheld GPS with final locations recorded
by a surveyor once the drilling was completed. Each hole underwent a downhole survey once
completed. Drill collars were subsequently marked using a concrete tablet for future reference.
SRK noted that the reported core recovery (>95%) is good, despite the fact that triple tube
drilling was not in use; however, recoveries were seen to decline towards and at vein
intersections.

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SRK has not physically inspected drilling procedures, given the completion of the drill
programme prior to the SRK site inspection. The documented procedures are in line with
accepted industry best practice and therefore it is assumed no material biases have been
introduced due to the drilling procedure, and therefore SRK concludes the data acquisition to be
fit for the purposes of this mineral resource estimate.
Figure 9-6: Core drilling at the Carla Project (GeoIntegral, 2011); sourced from GCM’s
internal report
9.3.6 Core Recovery
The geotechnical data provided by the Company shows an average core recovery of 96.4%,
with the recovery over the mineralised structure (as modelled by SRK) shows an average of
96.1%.
9.3.7 Core Storage
The GCM core shed is based a few hundred metres from both the Carla Project site office and
the entrance to the Carla Project Mine. SRK visited the storage facility during the 2012 site visit
and found the facility to be reasonably organised and clean. Storage and space at the current
facilities is limited and should further significant exploration be completed then further storage
space will be required.
9.3.8 Mineralisation and Results
The GCM geological team has identified a reasonable relationship between sulphide content
and gold grade within the quartz veins. Sulphide content is not, however, used as a guide for
modelling the vein, given that the relationship with gold grade is not sufficiently consistent. In
the recent drilling at Sandra K, the Company identified a strong relationship between higher
grades and the presence of galena.

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Grades of up to 15 g/t Au are also noted to occur within the wall rock (notably quartz diorite) of
the vein intersections, in the areas of significant alteration. It is evident, however, from the
database received to date that mineralisation outside of the vein is not sufficiently consistent to
warrant modelling a separate geological domain for resource estimation.
SRK notes from the database that there may be additional minor vein structures in the hanging
wall and footwall of the currently modelled veins that, subject to further drilling and
interpretation, may warrant modelling for inclusion in the resource model and therefore
represent potential upside, should their grade and width be of economic value over reasonable
lengths.
9.4 SRK Comments
In the opinion of SRK, the sampling procedures used by the Company conform to industry best
practices and the resultant drilling pattern is sufficiently dense to interpret the geometry and the
boundaries of the gold mineralisation with confidence. All drilling sampling was conducted by
appropriately qualified personnel under the direct supervision of appropriately qualified
geologists. A summary of the drilling locations completed per company is shown in Figure 9-7
and Figure 9-8.
Figure 9-7: Map Showing the Distribution of Drilling at Segovia

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Figure 9-8: Map Showing the Distribution of Drilling at Carla

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10 SAMPLE PREPARATION, ANALYSES, AND SECURITY

10.1 Introduction
During the 2012 and 2013 site visits, SRK has been able to visit the core shed facilities and
witness the underground channel sampling to review the sampling methods currently employed
by the Company. The following section relates to the methods and protocols used by the
Company in the latest exploration campaign. In terms of the historical sampling methods, SRK
has relied on the work completed by Dr Stewart Redwood, a consultant geologist to the
Company.
It is SRK’s view that the current sampling methods and approach are in line with industry best
practice and should not lead to any bias in the sampling and assay results.
10.2 Diamond Drilling Sample Preparation and Chain of Custody
Core logging and sampling procedures were consistent throughout the drilling programme and
were performed by the Company's exploration geology team. The main processes were as
follows:
x technicians at the drill site log the core for recovery and RQD before transportation to the
core shed;
x core boxes are transported from the drill sites to the core storage and logging facilities
within the Sandra K mine complex, Figure 10-1;
x all core is photographed wet;
x core is geologically logged using palm top computers with designed drop-down menus as
well as space allocated for detailed descriptions.
x sampling lengths are allocated; only the vain material and through into the hanging wall
and footwall selvage material is sampled on lengths ranging between 30 cm to 1 m
dependent upon geological unit;
x for the purpose of sampling, the alteration (where present) in the wall rock is split in to
two distinct units, namely argillic dominant (typically more gold-bearing) and propylitic or
potassic dominant;
x sections are then carefully cut with the use of a diamond core cuter into two equal halves;
x samples are taken and placed into heavy duty plastic bags; care is taken to ensure the
same half of core is removed throughout the sample intervalc
x Quality Control materials are randomly inserted, coarse granitic blank material, three
different pulped standards and 1/4 core for field duplicates, any insertion is recorded
within the core box by inserting additional wooden core blocks;
x samples are collected by SGS Colombia S.A. on a weekly basis for preparation in
Medellin and assay in Lima, Peru;
x all core boxes are covered and housed in a centralised core storage facility; and
x all data is inputted into a central Access database held on site by one of two responsible
data managers.

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Figure 10-1: Core storage facility at Carla Project documented by GeoIntegral,(2011);

sourced from GCM’s internal report, showing: (a) core photography, (b)
core logging area, (c) checking of recovery and RQD, (d) geological
logging, (e) core cutting and (f) core storage shelving system
10.3 Channel Sample Preparation and Chain of Custody
Samples are collected at along the development using the methods described in Section 8.3.3.
All mine channel samples were prepared at the Company's chemical laboratory. The sample
preparation procedure is summarised as follows:
x The samples are dried upon aluminium pans in a drying oven.
x The samples are then crushed in one of two Bico 3116 jaw crushers to minus ¼ inch.
x A 200 g split is then taken using a Jones riffle splitter.
x This sub set sample is then pulverized in LM2 mills to minus 100 mesh.

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x Compressed air is used to clean the equipment between samples. Fresh rock sand is
used to clean the equipment once a day.
x Each of the jaw crushers and disc mills is enclosed in a cabinet with a dust hood and
extractor fans.
The coarse reject material is discarded while the sample pulps are kept until the next day in
case any repeat assays are required, after which they are also discarded.
10.4 Sample Preparation and Sample Analysis

10.4.1 Mine Laboratory
SRK visited the mine laboratory located in close proximity to the Maria Dama Plant during the
2013 site inspection.
The sample preparation method at mine laboratory is that individual samples are placed in
individual steel trays before being placed in a large oven (at 105ºC for approximately three
hours). SRK noted that both folded steel and single pressed steel trays were currently in use at
the laboratory.
The next stage is to crush the entire sample to (>)85% passing -10 mesh (2 mm) using a jaw
crusher. The sample is then spilt to 250 g using a Jones splitter (if required) and pulverised to
>90% passing -140 mesh (140 µm) with an LM2 pulverising ring mill. The finesse of the
pulverised sample was reported to be tested using a sieve once per shift.
Using the pulverised material, a 50 g sample is selected using a cone and quarter method, and
place and mixed with a flux. Gold assays are then taken using fire assay techniques with a
gravimetric finish only.
Tested barren silica sand (in addition to compressed air) was used as a clean wash between
each sample in the crushing and pulverisation stages.
SRK noted a number potential quality issues at the current laboratory which include the
following:
x The current building for the mine laboratory is limited in terms of space, which results in
close proximity of drying, crushing, pulverising equipment, which during times of high
sample volume can create a dusty environment.
x Use of folded trays can result in cross contamination of samples if not cleaned as
material gets trapped behind the folds as the trays become warmer. In the future, to
remove this potential error, SRK would recommend the Company only uses single
pressed stainless steel trays.
x Stacking of trays due to limited space within the premise could result in cross
contamination of samples.
x The condition of the furnaces needs to be improved. During the site visit, of the two
furnaces, one was being rebuilt while the second was in use. Furthermore, the furnace
door was improperly closed, enabling additional oxygen to enter the system. SRK
recommends the condition of these furnaces needs attention if the mine laboratory
remains to be used for routine mine samples.

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x Limited internal tracking of samples is in place when placing samples in and out of the
furnaces. To provide improved QAQC and to ensure samples are not swapped, SRK
would recommend implementing the use of copper patterns.
SRK has been informed by the Company that samples have stopped being submitted to the
mine laboratory from 1 September 2013, and that all assays are now completed by SGS.
10.4.2 SGS Laboratory
For the 2011 drill programme, the samples were sent for sample preparation to the ISO
9001:2000 accredited, SGS laboratories (“SGS Medellin”) sample preparation facility in
Medellin and assayed for gold by SGS in Peru (“SGS Peru”).
SRK visited the SGS Medellin sample preparation facilities on 17 November 2011. The sample
preparation method at SGS Medellin was to dry the sample in large oven (at 105ºC for
approximately three hours) and crush the entire sample to (>)85% passing -10 mesh (2 mm)
using a jaw crusher.
The sample is then spilt to 250 g using a Jones splitter and pulverised to >90% passing -140
mesh (140 µm) with an LM2 pulverising ring mill. The finesse of the pulverised sample was
reported to be tested using a sieve every 50th sample.
Tested barren silica sand (in addition to compressed air) was used as a clean wash between
each sample in the crushing and pulverisation stages.
Since 15 August 2013, SGS has upgrade the SGS laboratory at Medellin from a sample
preparation only facility to both sample preparation and fire assay. SRK completed a visit to the
laboratory by Benjamin Parsons on 6 June 2013. Samples are tracked through the system
using barcodes placed on the samples within the sample receipt bay. The sample preparation
method follows the same process as the old laboratory.
SGS (Medellin) analysed the samples for gold by fire assay with atomic absorption
spectrophotometer ("AAS") finish. Samples over 5 g/t Au were assayed by fire assay with
gravimetric finish. Silver was assayed by aqua regia digestion and AAS finish. Silver samples
above 100 g/t were assayed by fire assay with gravimetric finish.
All field samples and drill samples up to hole ZC-0086 were analyzed for multiple elements by
aqua regia digestion and inductively coupled plasma (ICP) finish (39 Element ICP Package).
10.5 Specific Gravity Data

10.5.1 Segovia Project
During the 2011 site inspection, SRK noted a lack of density information during the initial data
review and recommended a programme of work to improve the confidence in the assigned
density. The Company, with guidance from SRK, developed a density measurement protocol
based on an immersion methodology.
x weigh dry sample;

x cover in paraffin wax;
x weigh sample covered in paraffin;
x immerse in water on suspended tray;

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x manually record weight; and

x back calculate density based on fixed formula within an Excel spreadsheet.
An example of the equipment used to measure the weights during the analysis and a typical
prepared core sample with logging sheet is illustrated in Figure 10-2 and Figure 10-3.
The programme has been implemented by the Company and a total of 580 drill core and
channel samples have been analysed to date. Density values measured range from 1.51 to
3
4.97 g/cm
A total 7 samples have been sent to SGS Peru in 2012 for external verification. Whilst there is a
degree of limitation on the sample size and variability in the results, SRK has selected the
3
average value at 2.7 g/cm as a reasonable representation of mineralised vein density.
Figure 10-2: Digital scales used to record sample weight for density analysis
Figure 10-3: Core sample coated in paraffin wax with logging sheet, prior to entry to
the database

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Figure 10-4: Summary of density sampling split by estimation domain 0 = wallrock,

1=vein.
10.5.2 Carla Project
A density sampling programme has been implemented by GCM to obtain density

determinations for the vein, granodiorite and basalt dyke material. To date, 50 drillcore samples
have been analysed in-house by the immersion methodology. Whilst there is a degree of
limitation on the sample size and variability in the results as a function of lithology, SRK has
3
selected the average value at 2.7 g/cm to provide a reasonable representation of density within
the mineralised structure.
10.5.3 SRK Comments
SRK recommends the Company continues with the density sampling program for future drilling
phases to increase the size of the database and, in addition, send a number of samples for
external verification to increase confidence in the currently assigned value.
10.6 Quality Assurance and Quality Control Programs
Quality control measures are typically set in place to ensure the reliability and trustworthiness of
exploration data. These measures include written field procedures and independent
verifications of aspects such as drilling, surveying, sampling and assaying, data management,
and database integrity.
Appropriate documentation of quality control measures and regular analysis of quality control
data are important as a safeguard for project data and form the basis for the quality assurance
program implemented during exploration.
Analytical control measures typically involve internal and external laboratory control measures
implemented to monitor the precision and accuracy of the sampling, preparation, and assaying.
They are also important to prevent sample mix-up and to monitor the voluntary or inadvertent
contamination of samples.
The exploration work conducted by the Company was carried out using a quality assurance and
quality control program meeting industry best practices for delineation stage exploration
properties. Standardised procedures were used in all aspects of the exploration data acquisition
and management including mapping, surveying, drilling, sampling, sample security, assaying,
and database management.
The QAQC procedure for the recent sampling includes the use of duplicates, blanks and
standards and are reported to comprise (as a proportion of the underground sample database)
3% standards, 3% blanks and 2% duplicates.

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Certified reference materials were sourced from Rocklabs Ltd (New Zealand) and Geostats Pty
Ltd (Australia). The Company used five distinct reference materials, with certified assay values
ranging from 0.51 to 39.88 g/t Au.
Field duplicates were also inserted within the samples submitted for assaying in 2011 and 2012.
Field duplicate samples were collected by splitting the remaining half core in half and assigning
a sample number that corresponds to the same sequence of the original samples.
To confirm the quality of the assays, replicate assays have been taken from core, channel and
pillar samples submitted during the 2012-13 programme to SGS Medellin have been submitted
for external checks.
Due to limited time constraints, the Company’s internal protocol of selecting samples at random
could not be achieved. SRK therefore modified the protocol to select complete batches of
samples stored at SGS Medellin and then resubmit these to Acme Laboratories (“Acme”) in
Medellin. The selection of entire batches, however, does retain some degree of random
selection anyway since each sample batch contains samples from several drillholes (or multiple
channels and pillars), and a range of grades from low grade and or barren wall rock to high
grade veins.
During the selection SRK placed more emphasis to the selection of drill core samples since
these influence a much greater area of the resource than channel and pillar samples. The
number of samples selected is as follows:
x Coarse rejects: core 100, pillars 50, channels 50 (total 200).
x Pulps: core 100, pillars 50, channels 50 (total 200).
10.7 SRK Comments
In SRK’s opinion, the sampling preparation, security and analytical procedures used by the
Company are consistent with accepted industry best practices and are therefore adequate.

Page 64 of 168
11 DATA VERIFICATION
11.1 Verifications by the Company
The Company has undertaken a number of verification sampling programs to date for the
historic underground channel sampling, including the initial check sampling completed under
the guidance of SEWC, which concluded a low degree of confidence in the results from the
historic mine laboratory (as detailed in the previous SRK Resource Report, dated April 2012).
As a result, it has been recommended to increase the confidence in the sampling by increasing
the underground mine/channel database, inclusive of further verification sampling. On the basis
of the subsequent verification (2011 – 2012) of the sampling databases (which indicated
reasonable sample integrity), SRK used the combined historical and more recent GCM data for
the previous Mineral Resource Estimate.
Additional channel sampling completed at the Providencia and Sandra K mines during the 2013
exploration program has enabled further verification of the historic database, which (whilst
indicating a variable correlation) has increased the geological confidence in within the re-
sampled areas, as discussed in Section 11.5.2.
Further key verification work completed by the Company during the latest phase of exploration
included the following:
x infill drilling of the historic borehole database at Sandra K;
x completing a check assay program for the SGS laboratory Medellin, at ACME laboratory
in Chile;
x data capture and cross checking of historical database captured of historical plans for the
El Silencio mine;
x validation of the Carla database, including geotechnical re-logging and assaying of

previously (selectively) non-sampled core within the within the mineralised zone, as
recommended by SRK; and
x anomalous GCM downhole surveys were resurveyed by an external contractor

(Weatherford) and all GCM collars resurveyed by a land survey Company (SIGMA
Ingenieria).
11.2 Quality Assurance and Quality Control (QAQC) for 2013 Submissions to
SGS Laboratories
The following control measures were implemented by the Company to monitor both the
precision and accuracy of sampling, preparation and assaying. Results shown have been
limited to the QAQC samples inserted during routine 2013 sample submissions.
Certified Reference Materials (“CRM”), blanks and duplicates were submitted into the sample
stream, equating to a QAQC sample insertion rate of approximately 15%, as illustrated in Table
11-1. In every 100 samples sent to the laboratory, the following are QA-QC materials were
inserted: 7 CRM, three blanks, one field duplicate, two coarse reject preparation duplicates and
two sample pulp duplicates.

Page 65 of 168
Table 11-1: Summary of Analytical Quality Control Data Produced by the Company for
the Project
GCM Analytical Quality Control Data – 2012/ 2013 Exploration Program
Count Total (%) Comment
Sampling Program
Gold Gold
Sample Count 4,689
Fine Blanks 4 0.1% Sourced from Rocklabs
Coarse Blanks 139 3.0%
CRM Samples 263 5.6% Sourced from Rocklabs and Geostats
Field duplicates 107 2.3%
Pulp duplicates 80 1.7%
Coarse duplicates 87 1.9%
Total QC Samples 680 14.5%
11.2.1 Insertion of CRM
The Company has introduced nine different CRM into the analysis sample stream. The CRM for
gold have been supplied by Rocklabs, New Zealand, and Geostats, Australia (Table 11-2).
Summary statistics for each CRM sample are shown in Table 11-3. The Company has defined
performance related goals on which batches are accepted or rejected and therefore requested
for reanalysis. The guidelines can be summarised as follows:
x a single CRM greater than three times the standard deviation is considered unacceptable
and means the subsequent samples are rejected;
x a single CRM greater than two times the standard deviation but less than three standard
deviations is considered acceptable and no action is taken; and
x two consecutive CRM greater than two times the standard deviation but less than three
standard deviations is considered unacceptable, the laboratory is notified and samples
falling between the two are re-assayed.
SRK has reviewed the CRM results and is satisfied that they demonstrate in general a high
degree of accuracy at the assaying laboratory (with the exception of a limited number of
anomalies) and hence give sufficient confidence in the assays for these to be used to derive a
Mineral Resource estimate. CRM charts are presented in Appendix A.
Table 11-2: Summary of Certified Reference Material Produced by Geostats and

Rocklabs and submitted by the Company in sample submissions
Gold; Au (ppm)
Standard Material
Certified Value SD Company
G901-7 1.52 0.06 Geostats
G910-7 0.51 0.03 Geostats
HiSilK2 3.474 0.09 Rocklabs
SK62 4.075 0.14 Rocklabs
HiSilP1 12.05 0.33 Rocklabs
SL61 5.931 0.18 Rocklabs
SN60 8.595 0.22 Rocklabs
SP49 18.34 0.34 Rocklabs
SQ47 39.88 0.85 Rocklabs

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Table 11-3: Analysis of gold assays versus assigned CRM values for 2013 Submissions
Standard Code Lab Count Assigned Mean Variance Maximum Minimum
Standard G901-7 Au FA-AAS - SGS_PERU 6 1.52 1.35 -11.1% 1.79 0.29
Standard G901-7 Au FA-AAS - SGS_COLOMBIA 50 1.52 1.55 1.7% 1.67 1.47
Standard G910-7 Au FA-AAS - SGS_COLOMBIA 32 0.51 0.53 3.3% 0.55 0.49
Standard HiSilK2 Au FA-AAS - SGS_COLOMBIA 32 3.474 3.55 2.1% 3.87 3.37
Standard SK62 Au FA-AAS - SGS_PERU 8 4.075 3.76 -7.7% 4.36 0.99
Standard SK62 Au FA-AAS - SGS_COLOMBIA 47 4.075 4.13 1.4% 4.27 3.93
Standard HiSilP1 Au FA-AAS - SGS_COLOMBIA 11 12.05 11.87 -1.5% 12.30 11.29
Standard SL61 Au FA-AAS - SGS_PERU 1 5.931 6.14 3.5% 6.14 6.14
Standard SL61 Au FA-AAS - SGS_COLOMBIA 15 5.931 6.01 1.3% 6.12 5.89
Standard SN60 Au FA-AAS - SGS_PERU 11 8.595 7.80 -9.3% 10.39 0.71
Standard SN60 Au FA-AAS - SGS_COLOMBIA 32 8.595 8.34 -3.0% 9.83 3.88
Standard SP49 Au FA-AAS - SGS_COLOMBIA 12 18.34 17.65 -3.8% 18.06 16.84
Standard SQ47 Au FA-AAS - SGS_PERU 2 39.88 36.33 -8.9% 37.67 34.99
Standard SQ47 Au FA-AAS - SGS_COLOMBIA 4 39.88 38.83 -2.6% 38.98 38.62
11.2.2 Blanks
Coarse quartz brought in from Medellin, and a certified fine grained blank from Rocklabs are
included in the sample stream. In total, 143 blanks were inserted at regular intervals within the
sample stream which represents some 3.1% of total sample submissions from the 2013 drilling
programme. SRK has reviewed the results from the blank sample analysis, and has determined
that there is little evidence for sample contamination at SGS Colombia and SGS Peru. Blank
sample analysis charts are presented in Appendix A.
11.2.3 Duplicates
Three types of sample duplicate have been inserted into the routine sample submissions,
namely pulp duplicates and coarse duplicates (“laboratory duplicates”), and field duplicates (1/4
core). In total, 274 duplicates were submitted for analysis which represents some 5.8% of total
sample submissions from the 2013 drilling programme.
The laboratory duplicates show a good correlation to the original samples, with a correlation
coefficient in excess of 0.99, whilst field duplicates submitted display the poorest correlation of
the three duplicate styles as typically expected, with a coefficient in the order of 0.5. The
difference in the mean grades for the field duplicates indicates a high geological variability and
the potential of a significant nugget effect at the Project that is not resolved by sample
preparation. Duplicate charts are presented in Appendix A.
In context of a deposit with noted high geological variability, SRK is reasonably confident in the
repeatability of the sample preparation process.
11.3 Quality Assurance and Quality Control (QAQC) for 2013 Submissions to
Internal Mine (GEM) Laboratory
SRK visited the on-site GEM Laboratory, operated by the Company’s Mining Department, which
primarily processes production samples from the mine, but also the grade control channel
samples taken during mining development, which SRK has been provided with in the sample
database.

Page 67 of 168
The QAQC procedures are largely focused towards analysis of duplicates and blank samples,
with less consistent use of CRM material (due to inconsistency in the results), analysed on a
monthly basis. The GEM Laboratory has sourced CRM material from Rocklabs and Ore
Research & Exploration Pty Ltd (“OREAS”), Australia.
SRK has been provided with the laboratory’s QAQC database relating to the period from March
– June 2013 (as summarised in Table 11-4), and noted from review of the charts some potential
contamination and accuracy issues that (in reference to the CRM and blanks analysis) relate to
analytical results occurring outside of the typically accepted confidence levels. The analytical
precision however, is noted to be reasonable on the basis of the (external) analytical duplicates
completed at SGS Medellin, which (in terms of pulp duplicates) are consistently shown to have
correlation coefficients in excess of 0.85, with an example shown in Figure 11-1. All GEM
QAQC charts are presented in Appendix A.
In SRK’s opinion, whilst the preparation and analytical methodology used at the GEM laboratory
could be improved significantly, the analytical issues noted (namely potential contamination or
sample mix-ups) may partly relate to the small size of the facility for amount of equipment
housed within it and high number of samples that pass through it. SRK also noted that the
laboratory was poorly ventilated, and as such contributing to a potential contamination issue.
In summary, SRK is reasonably confident in the methodology used for sample preparation and
analysis, however based on the degree of variability shown in the QAQC results SRK currently
attributes a relatively low degree of confidence in the results from this laboratory.
Table 11-4: Summary of Analytical Quality Control Data Produced By the GEM
Laboratory for the Project
GEM Lab Analytical Quality Control Data – March to June 2013
Count Comment
Sampling Program
Gold
Blanks 748
Pulp duplicates 436
Coarse duplicates 437
CRM Samples 47 Sourced from Rocklabs and OREAS Pty Ltd
Total QC Samples 1,668

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Analysis AU Assays (ppm) - Pulp Duplicates

100.00
80.00
y = 1.0015x + 0.8514
R² = 0.9219
Au Duplicates (ppm)
60.00
AU Assays (ppm) Duplicates - pulp
X-Y
40.00
Linear (AU Assays (ppm) Duplicates -
pulp)
20.00
0.00
0.00 20.00 40.00 60.00 80.00 100.00
AU Original (ppm)
Figure 11-1: Pulp duplicate results from the GEM Laboratory for June 2013
11.4 Verification of laboratory at Umpire Laboratory
As discussed in Section 10.6, to confirm the quality is the assays at SGS (Medellin) submitted
during the 2012-13 programmes an umpire laboratory check has been completed. The primary
concern for the checks is that since the laboratory used for this program is essentially a new
laboratory, there are no historical records of the quality.
To complete the analysis, selected batches from SGS Medellin have been resubmitted to Acme
Laboratories with sample preparation completed in Acme Medellin and the analysis completed
at Acme Chile.
The selected samples have been sourced from a range of drillcore reject and pulp samples,
plus reject and pulp material from channel sampling completed at Providencia and Sandra K
from underground drive and pillars. Samples have been selected on a batch basis and a
summary of the batches chosen are shown in Table 11-5.
Table 11-5: Summary of batches selected for Umpire Laboratory checks from the 2012-
2013 sampling programme
CHECK SAMPLES 2012 - 2013 PROGRAM
Original SGS Total
Material sent to Acme Chile
Job # samples
Drilling samples GQ1300248 108 Coarse Rejects (90% pass -10 mesh)
Chanel Samples Sandra K Mine GQ1200498 32 Coarse Rejects (90% pass -10 mesh)
Chanel Samples Providencia Mine GQ1300209 40 Coarse Rejects (90% pass -10 mesh)
Pillar Samples Providencia Mine GQ1200446 62 Coarse Rejects (90% pass -10 mesh)
Drilling samples GQ1300264 104 125 g Fine Rejects-Pulps (95% pass -140 mesh)
Chanel Samples Providencia Mine GQ1300001 50 126 g Fine Rejects-Pulps (95% pass -140 mesh)
Pillar Samples Providencia Mine GQ1300032 46 127 g Fine Rejects-Pulps (95% pass -140 mesh)

Page 69 of 168
Samples have been submitted on a like for like basis with the original QAQC samples, including
blank and CRM material replaced to ensure sufficient quality checks were in place. SRK has
reviewed independently reviewed the results and completed a comparison. In general, the
performance of the control samples inserted with samples submitted for assaying is acceptable
(Table 11-6).
Comparison of the summary statistics for the two datasets indicates that the mean grades are
within 1.4% and 6.4% for the pulp and coarse rejects respectively. In the case of the pulp
samples, higher grades have been returned from the Acme dataset, while in the rejects SGS
Medellin returns higher values overall. Both datasets display similar minimum and maximum
values, with similar sample variances reported, indicating the sample distributions are
comparative. Overall, the gold assay populations show better correlation than the silver assays.
Table 11-6: Summary statistics of SGS versus Acme pair duplicate assays
PULPS SGS Au Acme Au Difference REJECTS SGS Au Acme Au Difference
g/t g/t % g/t g/t %
Mean 6.28 6.37 1.43% Mean 6.84 6.40 -6.39%

Standard Deviation 57.86 59.16 2.24% Standard Deviation 38.32 36.86 -3.80%
Sample Variance 3347.92 3499.33 4.52% Sample Variance 1468.35 1358.96 -7.45%
Kurtosis 166.43 166.43 0.00% Kurtosis 79.25 96.88 22.24%
Skewness 12.83 12.83 0.00% Skewness 8.67 9.40 8.41%
Maximum 753.50 770.30 2.23% Maximum 395.73 431.00 8.91%
Sum 1074.33 1089.68 1.43% Sum 1443.09 1350.90 -6.39%
Count 171.00 171.00 0.00% Count 211 211 0.00%
PULPS SGS Au Acme Au Difference REJECTS SGS Au Acme Au Difference

g/t g/t % g/t g/t %
Mean 5.79 5.70 -1.63% Mean 9.78 10.41 6.39%

Standard Deviation 30.07 31.91 6.12% Standard Deviation 42.89 47.51 10.78%
Sample Variance 904.29 1018.40 12.62% Sample Variance 1839.53 2257.52 22.72%
Kurtosis 133.61 139.31 4.27% Kurtosis 78.05 59.97 -23.16%
Skewness 11.09 11.38 2.63% Skewness 8.44 7.58 -10.24%
Maximum 373.40 400.00 7.12% Maximum 459.90 447.00 -2.80%
Sum 990.60 974.50 -1.63% Sum 2064.50 2196.50 6.39%
Count 171.00 171.00 0.00% Count 211 211 0.00%
Paired assay data produced by SGS and Acme and examined by SRK suggest that gold and
silver grades can be reasonably reproduced. Ranked half absolute difference (HARD) plots
show that 90% of the pulp duplicate sample pairs by Acme are within 20% difference for gold,
while this increases to 30% difference in the coarser rejects. In comparison, greater differences
are seen in the silver datasets which have errors in the order of 40% for 90% of the data. To
complete the analysis, low grade pairs have been removed from the data with a lower limit of
0.05 g/t Au and 0.8 g/t Au used for gold and silver respectively.

Page 70 of 168
140
PULP: Half Absolute Relative Difference (HARD)
130 SGS vs. ACME (Au) Low Grade removed
120 SGS vs. ACME (Ag) Low Grade removed

110
100
Absolute % Difference
90
80
70
60
50
40
30
20
10
0
0 10 20 30 40 50 60 70 80 90 100
% RANK
REJECT: Half Absolute Relative Difference (HARD)

140
130 SGS vs. ACME (Au) Low Grade removed
120 SGS vs. ACME (Ag) Low Grade removed
110
100
Absolute % Difference
90
80
70
60
50
40
30
20
10
0
0 10 20 30 40 50 60 70 80 90 100
% RANK
Figure 11-2: HARD analysis of Pulp and Coarse Reject samples analysed at SGS
Medellin and Acme Chile laboratories, low grade samples filtered
In the opinion of SRK, the analytical results delivered by SGS and Acme for the core and
channel samples from the Segovia Project are sufficiently reliable to support mineral resource
evaluation. SRK recommends that for future drilling programs, GCM continues to review assay
results of analytical quality control samples using bias charts when assays are received from
the primary laboratory to monitor reliability and detect potential assaying problems. Batches
under review for potential failures should be recorded in a quality control spreadsheet,
investigated, and corrective measures taken when required.

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11.5 Verifications by SRK

11.5.1 Site Visit
In accordance with National Instrument 43-101 guidelines, SRK visited the Project from 4 to 7
June 2013. The main purpose of the site visit was to:
x witness the extent of the exploration work completed to date;
x inspect the drilling rig(s) and underground channel sampling completed during the latest
phase of exploration;
x visit the Sandra K, El Silencio and Providencia underground mines to ascertain

geological characteristics of the mineralised structures;
x review the sample preparation methodology and assay laboratory at the GEM Laboratory
and at SGS Medellin, and discuss quality issues;
x inspect core logging and sample storage facilities; and
x discuss updated geological and structural interpretations and inspect drill core.
SRK was able to verify the quality of geological and sampling information and develop an
interpretation of gold grade distributions appropriate to use in the Mineral Resource model. In
the case of testing the relationship between galena and gold at Sandra K to identify the higher
grade shoots, SRK confirmed that galena presence was closely correlated to higher grade gold
values, thus galena has been used by SRK as a validation check on the orientation of the
higher grade shoots.
A basic review of the electronic database against a number of drillhole intersections has been
completed.
11.5.2 Verification of Sampling Database
SRK completed a phase of data validation on the digital sample database supplied by the
Company which included but was not limited to the following:
x Search for sample overlaps or significant gaps in the interval tables, duplicate or absent
samples, errors in the length field, anomalous assay and survey results. The Company’s
geological team were notified of any issues that required correction or further
investigation. No material issues were noted in the final sample database.
x Confirmation of historic assays digitised from 2D mine plans for the El Silencio Mine. Due
to the historic method of recording channel sample grade in pennyweights (dwts) and
length in inches, SRK cross checked from original mine plans that the correct
conversions had been used (to reflect g/t Au and length in metres). A number of non-
converted historic channel samples were noted to exist in the database, which SRK
raised with the Company and were resolved prior to estimation.
x Checking of 10% of the electronic database supplied by the Company against hard
copies of assay results issued by the analytical laboratory. The hard copies of the original
issued assay certificates are stored by the Company in a central database and were
provided on request. SRK checked these results against the digital assays and no
transcription errors have been noted.

Page 72 of 168
x Excluded the historic drillholes in the database that did not pass all aspects of SRK’s and
the Company’s validation procedures, relating to missing assay data or anomalous
grade, width or spatial positioning. This analysis has been completed on a case by case
basis, with the exception of the underground drilling at Providencia, which has been
excluded from the estimation process. The drillholes were used as a guide for geological
modelling but were excluded from all statistical analyses and the resource estimate.
Where collar discrepancies were noted against the topography for historic holes, SRK
projected the collar positions a maximum of ±5 m where it enabled a better fit of the vein
intercept with underground sample data. In light of difficulty with locating historic collars,
SRK recommends twinning a portion of the historic drillhole data to determine suitability
for use in quoting block estimates at higher levels of confidence.
x Excluded the veins flagged in the historic underground database as “Respaldo Inferior :
FW” and “Respaldo Superior : HW”, relating to footwall and hanging wall veins (relative to
the main Providencia vein), on the basis of absence of reference elevation (RL) or survey
data on which to project the samples, and a limited spatial abundance (<5% of the
database). The raw mean sample grade of these excluded hanging wall and footwall
veins are 5.6 g/t Au and 7.1 g/t Au respectively and thus may represent some upside to
the current mineralisation model.
x Excluded vein samples that are flagged as having the footwall or hanging wall of the
structure continuing in to the floor or roof of the underground drive (and therefore
effectively incomplete samples). The exposed hanging wall or footwall (point) of the
flagged vein sample was used to guide the appropriate surface of the geological model,
however excluded from all statistical analyses and the resource estimate.
x Completed a verification study on the historic channel samples versus the recent (high
quality) SGS check sampling completed by the Company at Providencia. Comparative
small block estimates in areas populated by both historic and check samples revealed a
variable correlation, with a relative agreement in terms of high and low grade distribution,
however a more notable discrepancy in terms of estimated grades with the historic data
often reporting higher than the SGS samples. On the basis of (typically) only relative
agreement between the historic and SGS channel samples, SRK has used a quality
indicator in the estimate to help to apply confidence to the block estimates. A low quality
was assigned to the historic data on the basis of low confidence reported by SEWC
verification studies, as detailed in the previous SRK Resource Report. A low quality was
also assigned to GEM data on the basis of variable results from the QAQC analysis.
11.6 SRK Comments
In summary, SRK has reviewed the core-logging methodologies during the site visit, and has
undertaken an extensive review of the assay and density database during the Mineral Resource
estimation procedure. SRK is confident that the majority of data provided by the Company is of
sufficiently high quality, and has been subjected to a sufficiently high level of checking for use in
Mineral Resource estimation.
SRK notes that although the historic underground database is concluded to be reasonable for
use in the current resource estimate (as illustrated from the results from the verification
sampling), additional verification sampling should be completed across a proportion of all the
underground Segovia operations, to increase geological confidence in the estimated block
grades.

Page 73 of 168
12 MINERAL PROCESSING AND METALLURGICAL TESTING

It is SRK’s understanding that no further metallurgical testing has been completed as part of the
2011 exploration programme. During 2011-2013 work by the Company has focused on
increasing the capacity of the current Maria Dama Processing facility which is discussed in
more detail in Section 16 of this report.
In addition, a new processing plant is being built in conjunction with the Pampa Verde Project,
with an initial processing capacity of up to 2,500 tpd. Commissioning is scheduled in Q1 2015
and start-up of this plant is expected in June 2015.

Page 74 of 168
13 MINERAL RESOURCE ESTIMATES

13.1 Introduction
The Mineral Resource Statement presented herein represents the latest Mineral Resource
evaluation prepared for the Project in accordance with the Canadian Securities Administrators’
National Instrument 43-101 (NI 43-101).
The Mineral Resource model prepared by SRK utilises some 114,000 m of diamond drilling and
over 75,000 underground channel samples. The Mineral Resource estimate was completed by
Mr Benjamin Parsons, MAusIMM (CP) an appropriate “independent qualified person” as this
term is defined in National Instrument 43-101. The effective date of the resource statement is
01 August 2013.
This section describes the Mineral Resource estimation methodology and summarizes the key
assumptions considered by SRK. In the opinion of SRK, the Mineral Resource estimate
reported herein is a reasonable representation of the global Mineral Resources found in the
Project at the current level of sampling. The Mineral Resources have been estimated in
conformity with generally accepted CIM “Estimation of Mineral Resource and Mineral Reserves
Best Practices” guidelines and are reported in accordance with the Canadian Securities
Administrators’ National Instrument 43-101. Mineral Resources are not Mineral Reserves and
do not have demonstrated economic viability. There is no certainty that all or any part of the
Mineral Resource will be converted into Mineral Reserve.
SRK has been supplied with an export of the geological database and preliminary
interpretations of the main faults and veins in DXF format by the Company. The database used
to estimate the Project Mineral Resources was audited by SRK. SRK is of the opinion that the
current drilling information is sufficiently reliable to interpret with confidence the boundaries for
gold mineralisation and that the assay data are sufficiently reliable to support Mineral Resource
estimation.
Leapfrog Modelling Software (“Leapfrog”) was used to construct the geological solids, whilst
Datamine Studio Version 3 (“Datamine”) was used to prepare assay data for geostatistical
analysis, construct the block model, estimate metal grades and tabulate the resultant Mineral
Resources. Isatis software was used for geostatistical analysis and variography.
13.2 Resource Estimation Procedures
The resource estimation methodology involved the following procedures:
x database compilation and verification;
x construction of wireframe models for the fault networks and centrelines of mining
development per vein;
x definition of resource domains;
x data conditioning (compositing and capping) for statistical analysis, geostatistical

analysis;
x variography;
x block modelling and grade interpolation;

Page 75 of 168
x resource classification and validation;
x assessment of “reasonable prospects for economic extraction” and selection of

appropriate reporting cut-off grades; and
x preparation of the Mineral Resource Statement.
13.3 Resource Database

SRK was supplied with a Microsoft Excel Database, which has been exported from the
Company’s main (SQL) database. The files supplied had an effective cut-off date of 16 July
2013. Separate files were supplied for the drilling database and channel sampling programmes.
The database have been reviewed by SRK and imported into Datamine to complete the Mineral
Resource Estimate. SRK is satisfied with the quality of the database for use in the construction
of the geological block model and associated Mineral Resource Estimate.
13.4 Statistical Analysis – Raw Data
A statistical analysis has been undertaken for all data pertaining to the Project area. The
statistical analysis was used to determine whether different geological domains could be
identified. The statistical investigations included descriptive and distribution analyses,
assessment of outlier statistics. Histograms and log histograms have been plotted against
cumulative frequency for sample gold assays. A positively skewed log normal distribution was
evident for gold. SRK note that the positive skew is strongly influenced by a relatively high lower
detection limit at 1 g/t Au for the historic channel samples.
An initial global statistical analysis was undertaken on the raw drill data. Summary statistics,
incremental and log histograms were calculated. The skewed log normal distributions for gold
are shown in Figure 13-1.
Figure 13-1: Incremental and Log Histogram of Length Weighted Project Gold Assays

Page 76 of 168
13.5 Solid Body Modelling
All electronic data was initially imported into Datamine for visual validation against the
topography, and preliminary review in plan and section.
For the 2013 Mineral Resource Estimate, SRK was provided with updated geological
interpretations in the form of defined vein intercepts (tabulated in Excel), fault trace polylines
and additional mine survey data (defining the centreline of the veins where mine development
exists). The additional data provided has enabled the 3D construction of the El Silencio vein
below Mine Level 29, which, in addition to the modelling of more discrete high-grade shoot
domains, represents the most significant difference between the 2012 and 2013 Mineral
Resource Estimates in terms of modelling methodology.
The main geological units modelled for the deposits were:
x quartz sulphide veins at Providencia, Sandra K, El Silencio, Las Verticales and Carla;
x high grade shoots at Providencia and El Silencio; and;
x fault network.
13.5.1 Geological Wireframes
Fault Network
A fault network for Providencia, Sandra K and El Silencio has been interpreted by the Company
using mine survey points and underground fault mapping. The structural model (provided as
surface wireframes or polylines in DXF format), which has been approved as a reasonable
geological representation by the Company’s external structural consultant (Dr Tony Starling,
Telluris Consulting Ltd), has been used to define domain breaks for construction of the
mineralisation wireframes.
13.5.2 Mineralisation Wireframes
Quartz Sulphide Veins
The latest drill program at the Project has increased the size of the geological database, with
the focus on increasing the geological confidence in the estimates through infill and verification
drilling, most notably down-dip of the Providencia and Sandra K mines.
Interpretation of the vein structure in areas of mining development is relatively clear given the
abundance of on-vein channel samples and development surveys, whereas in areas of less
densely spaced sampling (for example down-dip of the mine) a greater consideration is
required. For the 2013 Resource update, interpreted vein intervals have been provided by the
Company geologists for use as a modelling guide to prevent of misallocation of mineralised
intercepts. Modelled vein intervals were selected based on lithology logs, elevated gold grades
and knowledge of the relationship between adjacent veins noted from underground mapping.
SRK created 3D vein wireframes from selected sample intercepts using the interval selection
tool in the Leapfrog Modelling Software.

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High Grade shoots
Statistical analysis and visual validation undertaken by SRK indicated the presence of two
sample populations (medium and high grade), which at Providencia and El Silencio (where the
distinction is most evident) have been subdivided into separate domains. The grade estimation
domains therefore comprise of the narrow vein zones interpreted by the Company geologists
and discrete high grade gold “shoot” domains, defined using Leapfrog grade-shells.
The orientation of the visually evident high-grade shoots was confirmed using an initial spherical
grade search, allowing a visual analysis of gold grade continuity. Further analysis into the
orientation of grade continuity was applied to the subsequent grade searches, resulting in the
final (most visually representative) Leapfrog grade shells using a 10 g/t Au cut-off, which were
used to define the high grade shoot domains.
SRK noted during the 2013 site visit to the Segovia Mining Operations the presence of
additional more discrete high grade shoots compared to those interpreted for 2012, which
(subsequent to database analysis and discussion with on-site personnel) have been modelled
to form structures ranging from 20 – 100 m across strike and 70 – 100 m down dip.
Visual review of the underground sampling either side of the contact confirmed a significant
change in grade and the conclusion to treat the boundaries as hard boundaries in the
interpolation procedure. The modelled domains for Providencia are illustrated in Figure 13-2.
Figure 13-2: Providencia vein high grade shoot definition using Leapfrog Modelling
Software at a cut-off above 10 g/t Au, comparing 2012 versus 2013
domains (August 2013)

Page 78 of 168
13.5.3 Mineralisation Model Coding
A summary of the key mineralisation zones versus statistical and estimation zone code and
modelled wireframe name for the Project is provided in Table 13-1. KZONE refers to the
estimation zone individual to each vein structure, whereas GROUP refers to the statistical zone
where (following initial analysis) datasets have been combined for statistical and geostatistical
procedures.
Figure 13-3 to Figure 13-5 provide images of the Providencia, Sandra K, El Silencio, Las
Verticales and Carla vein wireframes.
Table 13-1: Summary of Mineralisation Zones at the Project for August 2013
KZONE GROUP Wireframe Vein Description
pv_os_clip.dxf,
1100 1100 High grade shoots within Providencia vein
pv_hg_os_clip.dxf Providencia
1200 1200 v_1000.dxf Quartz sulphide vein at Providencia
2210
2220 Quartz sulphide veins at Sandra K (Techo,
2000
2230 Piso and Fault Block veins)
v_2000.dxf Sandra K
2240
Quartz sulphide veins at Sandra K
2100 2100
(Chumeca vein)
3100 3100 es_os_clip.dxf High grade shoots within El Silencio vein
El Silencio
3200 3200 v_3000.dxf Quartz sulphide vein at El Silencio
4000 4000 v_car_all.dxf Carla Quartz sulphide vein at Carla
5010
5020
5030
5040
5050
5060 Las Verticales
5000 v_5000.dxf (Las Aves, Quartz sulphide vein at Las Verticales
5070 Poma Rosa)
5080
5090
5110
5130
5140

Page 79 of 168
Figure 13-3: Plan image of the Providencia, Las Verticales, Sandra K and El Silencio
Vein Wireframes coloured by GROUP code (August 2013)
Figure 13-4: 3D Projection of the Providencia, Las Verticales, Sandra K and El Silencio
Vein Wireframes coloured by GROUP code, looking South (August 2013)

Page 80 of 168
Figure 13-5: 3D Projection of the Carla Vein Wireframes and fault interpretations,
looking Northwest (August 2013)
13.5.4 Mine Depletion Wireframes
SRK has been supplied with 2D DXF files to show areas of the Providencia, Sandra K and El
Silencio mine that have been depleted. SRK has created a 3D solid wireframe by projecting the
2D depletion through the mineralisation in order to discount the stoped areas from the final
Resource block model.
Mine surveys are updated on a monthly basis and it is understood that the files received are up
to date for 30 June 2013. SRK notes that pillar surveys are of a limited accuracy given the on-
going pillar extraction by mining contractors, which is not accounted for by the surveyors.
13.6 Compositing
Prior to the undertaking of a statistical analysis, the samples were composited into equal
lengths to provide a constant sample volume, honouring sample support theories.
SRK analysed the mean length of the underground channel and drillhole samples in order to
determine appropriate composite lengths. At Providencia, Sandra K, Las Verticales and Carla
the mean length of the sample data approximates to (or is less than) 1.0 m, suggesting that a
composite length of 1.0 m is appropriate. El Silencio was excluded from the composite length
analysis given that the associated database is limited to (single sample) historic channels
sampled across the vein. Figure 13-6 provides an example of the length analysis undertaken for
drillhole samples at Providencia and Sandra K.

Page 81 of 168
SRK also tested the sensitivity of tools within Datamine (MODE) that attempt to ensure all vein
samples are incorporated into the composite file. The results indicate that using the Datamine
(MODE = 1) utility enables more of the narrow vein samples to be incorporated in to the
composites while limiting any potential bias.
The results of the study for vein samples indicated that the selected 1.0 m composite length,
using a minimum sample length of 25% of the composite length (0.25 m) and Datamine’s
MODE = 1 function provides a reasonable reconciliation to the raw data mean grade and total
length. SRK has therefore elected to use the option to utilise all sampling within the flagged
veins (MODE=1).
Figure 13-6: Cumulative Histogram Showing the Mean Length of Raw Samples within
the Modelled Providencia (left) and Sandra K (right) Vein Domains
13.7 Evaluation of Outliers
High grade capping is undertaken where data is no longer considered to be part of the main
population. SRK has completed the analysis based on log probability plots, raw and log
histograms which can be used to distinguish the grades at which samples have significant
impacts on the local estimation and whose affect is considered extreme.
The percentage of the database capped and sensitivity of cap value on the mean grade of the
samples was checked (as shown for Providencia in Figure 13-7) to ensure the capping is
appropriate. Figure 13-7 illustrates that for the selected cap value at Providencia the mean
grade of the samples is relatively stable.
Log histograms and log-probability plots (as illustrated in Figure 13-8) are illustrated per domain
in Appendix B.
51
50
49
AU MEAN G/T
48
47
46
45
44
200 300 400 500 600 700 800 900
AU CAP G/T
Sample mean Cap value
Figure 13-7: Sensitivity of the selected Au Cap on sample mean grade at Providencia

Page 82 of 168
Figure 13-8: Log Histogram and Log Probability Plot for gold at Segovia – Providencia
high grade shoot (GROUP 1100) samples showing selected grade capping
Based on the analysis SRK decided to apply the following grade caps:
x 480 g/t Au to the Providencia high grade shoot domain;
x 200 g/t Au to the Providencia vein domain;
x 240 g/t Au to the Sandra K (Piso, Techo and Fault block) vein domain;
x 200 g/t Au to the Sandra K (Chumeca) vein domain;
x 150 g/t Au to the El Silencio high grade shoot domain;
x 125 g/t Au to the El Silencio vein domain;
x 100 g/t Au to the Carla vein domain;
x 25 g/t Au to the Las Verticales vein domain;
Table 13-2 shows a comparison of the mean grades within each domain based on the grade
capping applied. The percentage difference for the less densely sampled zones between the
raw and the capped mean is reasonably elevated, namely in the Carla and Las Verticales vein
domains. SRK noted during the investigation that the difference in the mean grade (in context of
a relatively small sample population) is skewed by a limited number of high-grade samples
which (prior to capping) have been visually checked to see whether they form separate
populations.
SRK noted during visual analysis of statistical outliers the potential for a separate discrete high
grade population within the El Silencio high grade shoot domain. However, given the relatively
low confidence in the historic sample data (and due to the current absence of verification
sampling at El Silencio), SRK has erred towards conservatism and applied a stricter cap
appropriate to the dominant sample population in the El Silencio domain.

Page 83 of 168
Table 13-2: Comparison of Mean Gold Composite Grades (raw composite versus
capped)
ABS MEAN
GROUP FIELD NSAMP MIN MAX MEAN VAR STDDEV COV % DIFF
DIFF
AU_PPM 9041 0.00 2780.00 50.43 7702.74 87.77 1.74
1100 -2.5% 1.24
AUCAP 9041 0.00 480.00 49.19 5603.59 74.86 1.52
AU_PPM 30282 0.00 1750.00 6.51 563.84 23.75 3.65
1200 -5.1% 0.33
AUCAP 30282 0.00 200.00 6.18 235.57 15.35 2.48
AU_PPM 8173 0.00 1840.00 9.23 1016.21 31.88 3.45
2000 -4.9% 0.45
AUCAP 8173 0.00 240.00 8.78 444.81 21.09 2.40
AU_PPM 858 0.00 386.00 8.78 775.55 27.85 3.17
2100 -7.4% 0.65
AUCAP 858 0.00 180.00 8.13 456.49 21.37 2.63
AU_PPM 4395 0.00 500.71 31.65 1767.46 42.04 1.33
3100 -1.6% 0.51
AUCAP 4395 0.00 150.00 31.14 1600.84 40.01 1.28
AU_PPM 22724 0.00 1381.00 7.06 430.98 20.76 2.94
3200 -4.5% 0.32
AUCAP 22724 0.00 125.00 6.75 261.52 16.17 2.40
AU_PPM 115 0.00 290.22 6.55 758.49 27.54 4.20
4000 -25.3% 1.65
AUCAP 115 0.00 100.00 4.90 131.98 11.49 2.35
AU_PPM 135 0.00 56.00 4.30 64.58 8.04 1.87
5000 -11.1% 0.48
AUCAP 135 0.00 25.00 3.82 33.39 5.78 1.51
13.8 Statistical Analysis and Variography

13.8.1 Classical Statistics
Classical statistical techniques were completed for the Project, and are presented in Table 13-3.
Each of the spatially individual zones (coded using the KZONE field) has been assessed
independently as illustrated from the summary statistics. SRK has sub-divided the Sandra K
domain (GROUP 2000) in to the spatially separate Piso, Techo, and Fault block veins. SRK has
not calculated the statistics at this point per individual vein for Las Verticales (GROUP 5000)
due to the limited dataset per vein. Histograms have been produced for each of the main zones
and can be found in Appendix C.
The summary statistics show that the coefficient of variation (CoV) for the defined high grade
shoot zones is reasonably low (<2.0), which indicates a reasonably low degree of variability,
supporting the definition of these domains. The vein domains however, in general show a
comparatively higher variability (>2.0), which may be indicative of a nugget effect in the sample
population or a (discrete) mixed sample population, with some portions of higher grade shoot-
type mineralisation influencing areas of lower grade vein material to some extent.
Whilst the indication for the Providencia vein is a slight reduction in variability when compared
to 2012, suggesting a potential improvement to the high-grade shoot domains for 2013, SRK
would recommend further work in to high grade shoot definition at each of the deposit areas on
the basis that the variance (noted during statistical analysis) remains reasonably elevated within
the vein domains.
The highest mean values in all datasets are found in the Providencia and El Silencio high-grade
shoot zones, whereas the Las Verticales vein domain as a result of the 2012/2013 drilling
campaign represent the lowest grades.

Page 84 of 168
Table 13-3: Summary Statistics for the Project per Zone (Capped Composites)
KZONE FIELD NSAMP MIN MAX MEAN VAR STDDEV COV
1100 AUCAP 9041 0.00 480.00 49.19 5603.59 74.86 1.52
1200 AUCAP 30282 0.00 200.00 6.18 235.57 15.35 2.48
2210 AUCAP 5713 0.00 240.00 7.24 351.30 18.74 2.40
2220 AUCAP 2396 0.00 240.00 12.51 653.05 25.55 2.63
2230 AUCAP 49 0.00 109.72 7.72 327.49 18.10 1.28
2240 AUCAP 15 0.02 9.38 2.25 9.03 3.01 2.40
2100 AUCAP 858 0.00 180.00 8.13 456.49 21.37 2.63
3100 AUCAP 4395 0.00 150.00 31.14 1600.84 40.01 1.28
3200 AUCAP 22724 0.00 125.00 6.75 261.52 16.17 2.40
4000 AUCAP 115 0.00 100.00 4.90 131.98 11.49 2.35
5000 AUCAP 135 0.00 25.00 3.82 33.39 5.78 1.51
13.9 Geostatistical Analysis
Variography is the study of the spatial variability of an attribute, in this case gold (“Au”) grade.
ISATIS Software (“Isatis”) was used for geostatistical analysis for the Project. In order to define
variograms of sufficient clarity, the data has been calculated using a Pairwise Relative
Variogram in Isatis, with the resultant variograms rescaled to the variance of a given zone.
In completing the analysis the following has been considered:
x azimuth and dip of each zone was determined;
x the down-hole variogram was calculated and modelled to characterise the nugget effect;
x experimental Pairwise Relative semi-variograms, were calculated to determine directional

variograms for the along strike, cross strike and down-dip directions;
x directional variograms were modelled using the nugget and sill defined in the down-hole
variography, and the ranges for the along strike, cross strike and down-dip directions;
and
x (where relevant) all variances were re-scaled for each mineralised lens to match the total
variance for that zone.
An example of the pairwise relative variograms modelled for the Providencia high-grade shoot
and vein domains (KZONE 1100, 1200) for gold are shown in Figure 13-9 with variograms for
all zones shown in Appendix D.

Page 85 of 168
Variogram Model - Global Variogram Model - Global
Pairwise Relative Vario.

Distance (m) Distance (m)
0 50 100 150 0 50 100 150
0.7 0.7
1.0 1.0
0.6 0.6
N44 N10
0.5 0.5
0.4 0.4
N307 N307
0.5 0.5
0.3 0.3

N10 0.2 0.2
N44
0.1 0.1
0.0 0.0 0.0 0.0
-0.1 -0.1
0 50 100 150 0 50 100 150
Distance (m) Distance (m)
Isatis Isatis
DH_COMP/1M_COMP_0712(GROUP{GROUP=1100}) DH_COMP/1M_COMP_0712(GROUP{GROUP=1200})
rgoddard rgoddard
- Variable #1 : AUCAP - Variable #1 : AUCAP
Pairwise Relative Variogram : in 3 direction(s) Jul 12 2013 Pairwise Relative Variogram : in 3 direction(s) Jul 12 2013
D1 : N307 D1 : N307
U5575_Segovia U5575_Segovia
Angular tolerance = 10.00 Angular tolerance = 10.00
Lag = 2.00m, Count = 60 lags, Tolerance = 50.00% Lag = 2.00m, Count = 60 lags, Tolerance = 50.00%
Horizontal Slicing = 50.00m Horizontal Slicing = 50.00m
Vertical Slicing = 500.00m Vertical Slicing = 500.00m
D2 : N44 D2 : N44
Horizontal Slicing = 50.00m Horizontal Slicing = 50.00m
Vertical Slicing = 500.00m Vertical Slicing = 500.00m
D3 : N10 D3 : N10
Model : 4 basic structure(s) Model : 4 basic structure(s)
Global rotation = Azimuth=N280.00 Dip=30.00 Pitch=30.00 (Geologist Plane) Global rotation = Azimuth=N280.00 Dip=30.00 Pitch=30.00 (Geologist Plane)
S1 - Nugget effect, Sill = 0.35 S1 - Nugget effect, Sill = 0.35
S2 - Spherical - Range = 4.00m, Sill = 0.329 S2 - Spherical - Range = 5.00m, Sill = 0.142
Directional Scales = ( 4.00m, 5.00m, 4.00m) Directional Scales = ( 5.00m, 7.00m, 5.00m)
Figure 13-9: Summary of modelled semi-variogram parameters for the Providencia

high-grade shoot and vein domains (KZONE 1100, 1200) for gold (shown
left and right); August 2013
When compared to the 2012 Mineral Resource Estimate, the approach to modelling the
variograms and associated parameters remains reasonably consistent with previous
interpretation, with the exception of the following key differences:
x Separate variograms modelled for the Providencia high-grade shoot and vein domains.
SRK noted a slight increase in the nugget (from 40% to 60%) in the Providencia vein
when compared to the high-grade shoot domain;
x 3D variograms modelled for the El Silencio high-grade shoot and vein domains. SRK
noted (in the context of a larger database) an increase in the longest range structure from
50 m to 100 m (note this however only accounts for a less than 4% of the variance), the
majority of the variance for all domains lies within 5 to 10 m (structure 1), increasing to
25 – 50 m (structure 2);
x Variogram modelled for the Las Verticales vein, as a function of the additional samples
incorporated from the latest drilling program and (2013) re-interpretation of the geological
model.
The final variogram parameters for the Project are displayed in Table 13-4.

Page 86 of 168
Table 13-4: Summary of semi-variogram parameters (August 2013)

A1 – A1 – A2 – A3 – A3 –
A2 – A3 –
Variogram Along A1 – Down Across A2 – Along Across Along Across Nugget
Rotation Z Rotation Y Rotation X Co C1 C2 Down C3 Down
Parameter Strike Dip (m) Strike Strike (m) Strike Strike Strike Effect (%)
Dip (m) Dip (m)
(m) (m) (m) (m) (m)
AUCAP-GROUP
10 30 -150 2176.75 2046.15 4 5 4 1175.45 25 35 25 205.24 100 100 100 39%
1100
AUCAP-GROUP
10 30 -150 143.64 58.28 5 7 5 16.83 30 40 30 16.83 55 100 55 61%
1200
AUCAP-GROUP
97 29 0 273.31 94.29 5 10 5 27.33 20 50 20 49.88 70 100 70 61%
2000
AUCAP-GROUP
0 0 0 246.42 91.17 5 5 5 118.90 100 100 100 0.00 0 0 0 54%
2100
AUCAP-GROUP
105 27 -43 1118.17 264.63 5 5 5 22.36 25 35 25 195.68 80 100 80 70%
3100
AUCAP-GROUP
105 27 -43 151.75 38.44 12 8 12 17.96 55 25 55 53.37 90 80 90 58%
3200
AUCAP-GROUP
80 45 0 0.30 0.14 5 5 5 0.56 130 70 30 0.00 0 0 0 30%
4000
AUCAP-GROUP
0 0 0 9.79 15.62 30 30 30 17.03 120 120 120 0.00 0 0 0 23%
5010
AUCAP-GROUP
0 0 0 11.14 17.77 30 30 30 19.38 120 120 120 0.00 0 0 0 23%
5020
AUCAP-GROUP
0 0 0 2.57 4.09 30 30 30 4.47 120 120 120 0.00 0 0 0 23%
5030
AUCAP-GROUP
0 0 0 3.71 5.92 30 30 30 6.45 120 120 120 0.00 0 0 0 23%
5040
AUCAP-GROUP
0 0 0 16.71 26.65 30 30 30 29.07 120 120 120 0.00 0 0 0 23%
5050
AUCAP-GROUP
0 0 0 0.42 0.68 30 30 30 0.74 120 120 120 0.00 0 0 0 23%
5060
AUCAP-GROUP
0 0 0 2.35 3.76 30 30 30 4.10 120 120 120 0.00 0 0 0 23%
5070
AUCAP-GROUP
0 0 0 0.37 0.60 30 30 30 0.65 120 120 120 0.00 0 0 0 23%
5080
AUCAP-GROUP
0 0 0 8.97 14.30 30 30 30 15.60 120 120 120 0.00 0 0 0 23%
5090
AUCAP-GROUP
0 0 0 21.78 34.75 30 30 30 37.90 120 120 120 0.00 0 0 0 23%
5110
AUCAP-GROUP
0 0 0 0.01 0.02 30 30 30 0.02 120 120 120 0.00 0 0 0 23%
5130
AUCAP-GROUP
0 0 0 0.56 0.90 30 30 30 0.98 120 120 120 0.00 0 0 0 23%
5140

Page 87 of 168
13.10 Block Model and Grade Estimation
Block model prototypes were created per deposit area for the Project, based on UTM
coordinates. Block model parameters were chosen to reflect the average drillhole spacing along
strike and on section. The sensitivity of block variance to block size was tested during the 2012
SRK Resource Estimate, with the selected block size concluded reasonable. SRK concluded
the block size remains reasonable for use in 2013 estimates.
To improve the geometric representation of the geological model, sub-blocking is allowed along
the boundaries to a minimum of 1.0 m along strike, 1.0 m across strike and 0.5 m (or 0.25 m) in
the vertical direction. A summary of the block model parameters are included in Table 13-5.
Table 13-5: Details of Block Model Dimensions for the Project Geological Model
Min Sub-blocking
Model Dimension Origin (UTM) Block Size Number of Blocks
(m)
X 930000 20 140 1.00
Providencia 2013 Y 1272000 10 190 1.00
Z -300 10 120 0.50
X 931800 10 165 1.00
Sandra K 2013 Y 1274600 10 180 1.00
Z -100 10 100 0.50
X 930000 10 200 1.00
El Silencio 2013 Y 1273500 20 150 1.00
Z -500 10 120 0.50
X 930650 25 78 1.00
Carla 2013 Y 1267400 25 64 1.00
Z -50 25 36 0.25
X 928500 10 275 0.50
Las Verticales 2013 Y 1271700 20 175 1.00
Z 0 20 45 1.00
Using the wireframes created and described in Section 13.5.1 several codes have been written
in the block model to describe each of the major geological properties of the rock types. Table
13-6 summarises geological fields created within the block model and the codes used.

Page 88 of 168
Table 13-6: Summary of block model fields used for flagging different geological
properties
Field Name Description
SVOL Search Volume reference (range from 1 - 3)
KV Kriging Variance
SLOPE Slope of regression
NSUM Number of samples used to estimate the block
AU Kriged gold value
AUIDW IDW validation estimate for gold
CLASS Classification
GROUP Mineralised structures grouped by domain
KZORIG Vein domain coding, individual to each mineralised structure
KZONE Kriging zone for estimation
DENSITY Density of the rock
DEPL Flag to denote depleted areas of model
PILLAR Remaining vein material inside the current limits of depletion
MINE Flag to denote depleted areas of the model, excluding the pillars
LICENCE Flag to denote areas of the model outside of the Licence Boundary
TTHK True thickness estimate using wireframe data
AUGMT Accumulated gold grade (AU*TTHK)
AUM1 Accumulated gold grade over a 1 m mining width
13.11 Final Kriging Parameters
Ordinary Kriging (“OK”) was used for the grade interpolation for the Project and all major
domain boundaries have been treated as hard boundaries during the estimation process.
Restrictive searches have been used locally at Providencia and Carla to prevent very high gold
grade samples in areas of lower drilling density from over influencing the surrounding block
estimates, and thus honouring the geological interpretation (for highly variable gold grade
distribution) favoured by SRK and the Company.
The selected OK parameters are based on the results of a quantitative Kriging Neighbourhood
Analysis (“QKNA”), and are presented in Table 13-7.

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Table 13-7: Summary of Final Kriging Parameters for the Segovia Project
KZONE ELEMENT SREFNUM SMETHOD SDIST1 SDIST2 SDIST3 SANGLE1 SANGLE2 SANGLE3 SAXIS1 SAXIS2 SAXIS3 MINNUM1 MAXNUM1 SVOLFAC2 MINNUM2 MAXNUM2 SVOLFAC3 MINNUM3 MAXNUM3 MAXKEY
1
1100 AUCAP 1 2 75 100 100 10 30 -150 3 1 3 15 20 1.5 4 30 3 2 25
1200 AUCAP 2 2 55 100 100 10 30 -150 3 1 3 15 20 1.5 4 30 3 2 25
2210 AUCAP 1 2 75 75 75 0 0 0 3 1 3 15 20 2.5 3 12 3 2 25

2220 AUCAP 2 2 75 45 75 97 29 25 3 1 3 3 8 1.3 3 12 6 2 10
2230 AUCAP 3 2 100 60 100 97 29 25 3 1 3 3 8 2 3 12 3 2 10
2240 AUCAP 4 2 75 75 75 0 0 0 3 1 3 15 20 2.5 3 12 3 2 25
3100 AUCAP 1 2 75 100 100 105 27 -43 3 1 3 15 20 2.5 5 30 5 2 25

3200 AUCAP 2 2 75 100 100 105 27 -43 3 1 3 15 20 2.5 5 30 5 2 25
2
4000 AUCAP 1 2 100 35 60 80 45 0 3 1 3 4 12 2 4 10 2.6 2 20
40003 AUCAP 2 2 100 100 100 80 45 0 3 1 3 1 4 2 1 4 2.6 1 4
5000 AUCAP 1 2 400 400 400 0 0 0 3 1 3 4 8 1 3 12 1.5 2 10
1
Restrictive searches (confined to areas down-dip of the close-spaced channel sampling) at Providencia use a high grade cap of 480 g/t Au (within a 25 x 50 m radius), with a lower cap at 60 g/t selected for
the estimates outside of the restrictive search. Capping limits were defined during outlier analysis from review of log histogram and probability plots, and from local visual assessments within the areas
influenced by the restrictive search.
2
The restrictive search at Carla (confined to a single block where high-grade is located) uses a high grade cap of 100 g/t Au, with a lower cap at 50 g/t Au applied to the estimates outside of the restrictive
search. Capping limits were defined during outlier analysis from review of log histogram and probability plots.
3
A secondary search is applied at Carla to fill blocks that do not satisfy the criteria set in the initial search. The secondary search interpolates gold grades in to the low confidence blocks in the data sparse
down-dip area of the Carla vein, to give an indication of grade distribution for exploration planning.

Page 90 of 168
13.12 Model Validation and Sensitivity

13.12.1 Sensitivity Analysis
Grade estimation was performed in Datamine using OK, based on optimum parameters
determined through a Quantitative Kriging Neighbourhood Analysis (“QKNA”) exercise. The
exercise was based on varying kriging parameters during a number of different scenarios. The
slope of regression, kriging variances, block estimates and percentage of blocks filled in each
search were recorded and compared for each scenario. The following parameters were changed
during the QKNA exercise:
x minimum number of samples;
x maximum number of samples; and
x search ellipse sizes.
Sample spacing and data quantity within the areas of the veins that host mining development
remain largely unchanged from the 2012 Mineral Resource Estimate, and therefore the QKNA
exercise for August 2013 has focused on the areas of recent infill drilling, situated down-dip of
the mined areas.
SRK initially focused testwork on increasing the block grade variability within the drill defined
down-dip areas of the Providencia and Sandra K veins, to reflect the closer spaced sampling
achieved by the Company during the latest phase of drilling. Whilst there is a degree of
sensitivity in the mean block grade to a change in the estimation parameters (notably at
Providencia in relation to number of samples, Table 13-8), SRK has noted an improved visual
validation using a more localised search ellipse (appropriate to the spacing of the 2013 sample
data) with a relatively low minimum number of samples. SRK has therefore reduced the size of
the search ellipse and adjusted the minimum number of samples such that a minimum of 2 or 3
drillholes are used per block estimate in the down-dip areas that appropriately informed with
sample data.
Table 13-8: QKNA Number of Samples at Segovia; Providencia Vein Domain, GROUP
1200 (August 2013)
DETERMINE NUMBER OF SAMPLES GRADE
RUN MIN MAX SEARCH SVOL AUOK AUIDW SLOPE NUM KV % Fill
15 20 55x100x100 1 6.55 6.41 0.34 20 42.02 50.1%
1 4 30 55x100x100 2 3.62 3.06 0.08 17 65.72 25.3%
2 25 55x100x100 3 3.17 2.80 0.01 11 93.56 24.7%
15 20 55x100x100 1 6.55 6.41 0.34 20 42.02 50.1%
2 5 30 55x100x100 2 3.97 3.35 0.08 19 60.62 21.9%
2 25 55x100x100 3 3.37 2.82 0.02 13 88.03 28.0%
15 20 55x100x100 1 6.55 6.41 0.34 20 42.02 50.1%
3 6 30 55x100x100 2 4.48 3.82 0.09 22 56.19 18.6%
2 25 55x100x100 3 3.59 2.87 0.02 14 83.85 31.3%
15 20 55x100x100 1 6.55 6.41 0.34 20 42.02 50.1%
4 4 10 55x100x100 2 3.41 2.63 0.07 8 72.55 25.3%
2 10 55x100x100 3 3.13 2.73 0.01 6 97.68 24.7%
15 20 55x100x100 1 6.55 6.41 0.34 20 42.02 50.1%
5 4 15 55x100x100 2 3.54 2.85 0.07 10 69.33 25.3%
2 15 55x100x100 3 3.13 2.79 0.01 8 95.20 24.7%

Page 91 of 168
During the testwork, SRK also noted the tendency for very high gold grade samples in areas of
lower drilling density (with highly variable gold grades) to over influence the surrounding local
block estimates. In attempt to restrict the influence of these very high grade samples, without
overly penalising the estimated block grades, SRK has created a restricted initial search for this
domain that allows the full influence of the very high grades over a local scale, which is then
followed by a non-restricted search that has less of an influence from the very high grade
sample. The restricted searches have an ellipse size that is appropriate to the variogram range
and sample distribution per vein, and have been applied for (visually) selected areas at the
Providencia (25 x 50 m radius) and Carla (single block where high-grade is located) deposits.
Figure 13-10 provides an example of the influence of the restricted search at Providencia.
SRK is satisfied that no global bias is introduced through the final selected parameters, and
considers the estimated block grades to appropriately honour the geological interpretation and
grade variability.
Figure 13-10: QKNA for use of Restrictive Searches within the Providencia high-grade
shoot Domain, GROUP 1100 (August 2013)

Page 92 of 168
13.12.2 Block Model Validation
SRK has validated the block model using the following techniques:
x visual inspection of block grades in comparison with drillhole data;
x sectional validation of the mean samples grades in comparison to the mean model grades;
and
x comparison of block model statistics.
Visual Validation
Visual validation provides a comparison of the interpolated block model on a local scale. A
thorough visual inspection has been undertaken in 3D, comparing the sample grades with the
block grades, which demonstrates in general good comparison between local block estimates
and nearby samples, without excessive smoothing in the block model. Figure 13-11 shows an
example of the visual validation checks and highlights the overall block grades corresponding
with composite sample grades. Further visual validation images are shown in Appendix E.
SRK note in a limited number of cases, within areas of low sample density and highly variable
gold grade, local grade discrepancies do occur between composite and block grades (as a result
of smoothing). In these areas SRK has verified the resulting grade distributions with the
Company geological staff and made amendments where appropriate. In areas of greatest
variability SRK has considered grade continuity as a factor during the classification process.
Figure 13-11: Providencia 3D projection showing visual validation of modelled boreholes

intercepts to grade estimates (August 2013)

Page 93 of 168
Sectional Validation
As part of the validation process, the input composite samples are compared to the block model
grades within a series of coordinates (based on the principle directions). The results of which are
then displayed on charts to check for visual discrepancies between grades. Figure 13-12 shows
the results for the gold grades for the Providencia vein domain (KZONE=1200) based on section
lines cut along X-coordinates.
The resultant plots show a reasonable correlation between the block model grades and the
composite grades, with the block model showing a typically smoothed profile of the composite
grades as expected. SRK notes that in less densely sampled areas, minor grade discrepancies
do exist on a local scale. However, overall, SRK is confident that the interpolated grades reflect
the available input sample data and the estimate shows no sign of material bias.
Validation plots per KZONE domain for gold are shown in Appendix F.
14 1400
12 1200
10 1000
No. Samples
Au (ppm)
8 800
6 600
4 400
2 200
0 0
930000 930500 931000 931500 932000 932500 933000
X-Co-ordinate
Sample Mean Model Mean No. Samples
Figure 13-12: Validation Plot (Easting) showing Block Model Estimates versus Sample
Mean (30m Intervals) for KZONE 1200
Statistical Validation
The block estimates have been compared to the mean of the composite samples (Table 13-9)
which indicate the overall percentage difference in the mean gold grades typically vary between
1% – 10% in terms of the OK estimates versus the composites, which SRK deems to be within
acceptable levels.
SRK notes a higher percentage difference in the means for the Sandra K Piso vein (GROUP
2220), which is due to the spatial distribution of the data within the domain resulting in a high
weighting of the tonnes being based on relatively few lower grade samples. Globally (at Sandra
K) the Piso vein represents less than 5.0 % of the classified tonnage.
Based on the visual, sectional and statistical validation results SRK has accepted the grades in
the block model.

Page 94 of 168
Table 13-9: Summary Block Statistics for Ordinary Kriging and Inverse Distance
Weighting Estimation Methods*
Absolute
Composite Declustered Block % Absolute % Difference
ESTIMATION Difference
KZONE FIELD Mean AU Mean AU Estimate Difference Difference Declustered
METHOD Declustered
(g/t) (g/t) AU (g/t) AU AU (g/t) AU
AU (g/t)
AU OK 49.19 45.92 48.37 -1.7% 0.82 5.3% 2.45
1100
AUIDW IDW 49.19 45.92 52.23 6.2% 3.04 13.7% 6.31
AU OK 6.18 5.78 5.4 -12.6% 0.78 -6.6% 0.38
1200
AUIDW IDW 6.18 5.78 5.32 -13.9% 0.86 -8.0% 0.46
AU OK 8.13 7.65 8.06 -0.9% 0.07 5.4% 0.41
2100
AUIDW IDW 8.13 7.65 8.22 1.1% 0.09 7.5% 0.57
AU OK 7.24 7.15 6.52 -9.9% 0.72 -8.8% 0.63
2210
AUIDW IDW 7.24 7.15 6.47 -10.6% 0.77 -9.5% 0.68
AU OK 12.51 11.1 8.98 -28.2% 3.53 -19.1% 2.12
2220
AUIDW IDW 12.51 11.1 8.99 -28.1% 3.52 -19.0% 2.11
AU OK 7.72 6.5 5.85 -24.2% 1.87 -10.0% 0.65
2230
AUIDW IDW 7.72 6.5 5.87 -24.0% 1.85 -9.7% 0.63
AU OK 2.25 2.25 1.98 -12.0% 0.27 -12.0% 0.27
2240
AUIDW IDW 2.25 2.25 2.31 2.7% 0.06 2.7% 0.06
AU OK 31.14 28.6 31.55 1.3% 0.41 10.3% 2.95
3100
AUIDW IDW 31.14 28.6 31.63 1.6% 0.49 10.6% 3.03
AU OK 6.75 6.49 6.54 -3.1% 0.21 0.8% 0.05
3200
AUIDW IDW 6.75 6.49 6.57 -2.7% 0.18 1.2% 0.08
AU OK 4.9 5.78 5.75 17.3% 0.85 -0.5% 0.03
4000
AUIDW IDW 4.9 5.78 5.13 4.7% 0.23 -11.2% 0.65
AU OK 3.82 3.71 3.72 -2.6% 0.1 0.3% 0.01
5000
AUIDW IDW 3.82 3.71 3.88 1.6% 0.06 4.6% 0.17
*Note that the raw composite mean has (where appropriate) been used in place of the declustered mean for optimal
statistical comparison with the block estimate
13.13 Mineral Resource Classification
Block model quantities and grade estimates for the Project were classified according to the CIM
Definition Standards for Mineral Resources and Mineral Reserves (December 2005).
Mineral Resource classification is typically a subjective concept, industry best practices suggest
that classification should consider both the confidence in the geological continuity of the
mineralized structures, the quality and quantity of exploration data supporting the estimates and
the geostatistical confidence in the tonnage and grade estimates. Appropriate classification
criteria should aim at integrating both concepts to delineate regular areas at similar resource
classification.
Data quality, drillhole spacing and the interpreted continuity of grades controlled by the veins and
high grade shoots have allowed SRK to classify portions of the veins in the Measured, Indicated
and Inferred Mineral Resource categories respectively.
In addition to the requirement for the mineralisation model to show economic qualities, the
following guidelines apply to SRK’s classification.

Page 95 of 168
Measured
Measured Mineral Resources at Providencia have been limited to within areas of dense
sampling, within a 15 – 30 m halo (related to the second variogram structure) of close spaced
underground channel sampling. Measured Resources are limited to the Providencia vein on the
basis of insufficient confidence in the geological and grade continuity and 3D geometry of the
mineralised structures at the other deposits.
Indicated
For the 2013 Mineral Resource Estimate, SRK has delineated Indicated Mineral Resources (in
addition to Providencia and Carla, delineated in 2012) at areas of the Sandra K vein as a function
of recent verification and infill sampling programs. Indicated Mineral Resources have been given
at the following approximate data spacing, as function of the confidence in the grade estimates
and modelled variogram ranges:
x at Providencia, 55 x 100 m (XY) from the nearest drillhole;
x at Sandra K, 50 x 50 m (XY) from the nearest drillhole; and
x at Carla, within a 25 – 50 m (XY) halo from the nearest drillhole.
Inferred
In general, Inferred Mineral Resources have been limited to within areas of reasonable grade
estimate quality and sufficient geological confidence, and are extended no further than 100 m
from peripheral drilling on the basis of modelled variogram ranges.
The El Silencio Mineral Resource has been restricted to the Inferred category, given that
verification sampling for the vein has yet to be undertaken, and to below Mine Level 29 which
have been flooded, where the Company has sufficient confidence in the accuracy of the
depletion surveys, such that the depletion survey provide reflects the mining conditions prior to
the increase in the water table. SRK is satisfied that the underground conditions remain in good
condition based on visits to a number of previously flooded levels during the site inspection,
where mining is currently active.
At Las Verticales, all of the Mineral Resource has been classified as Inferred given the relatively
wide drill hole spacing and significant re-interpretation of the geological model completed by the
Company (due to targeted infill drilling) for 2013. For the Providencia vein, a number of areas
have been delineated by the Company in which the vein material is considered low confidence
(and hence restricted to Inferred) relating to historical artisanal mining, potential saprolitic
material or potential pinches in the structure. These areas have been subdivided out in the
Mineral Resource statement to provide an indication on their potential for conversion to higher
levels of confidence.

Page 96 of 168
Pillar Classification
The classified Mineral Resource is sub-divided into material within the remaining pillars, and the
longer-term resource material outside of the previously mined areas, with the classification for
the pillars considered separately given the uncertainty in terms of the extent of pillar mining
currently being undertaken by Company-organised co-operative miners. The following guidelines
apply to SRK’s pillar classification.
x Indicated Pillar Mineral Resources have been limited to areas where a sufficient level of
verification channel sampling has been completed, and the Company has a relatively high
confidence in the accuracy of the pillar surveys. For Providencia, these areas largely
represent the pillars where the co-operative miners have had limited access. SRK notes,
however, that once the economic cut-off criteria is applied at Providencia, limited material
remains within the Indicated pillar areas such that they are excluded from the Resource
Statement. At Sandra K, whilst the accuracy in the pillars remains relatively unknown, SRK
notes that within the economic portions of the model the depletion surveys indicate that
certain areas (north of 1275350) have undergone only limited mining activity with the
current mining development, and thus SRK considers these areas within the pillar
resource to be in the Indicated category.
x All remaining pillar material (outside of the Indicated pillars) has been restricted to the
Inferred category as a function of inaccuracies in the pillar surveys owing to the uncertainty
in the extent of pillar mining. At Providencia, a number of areas have been delineated by
the Company in which the pillar material is noted to be lower confidence, relating to areas
where the pillars are considered to have collapsed or have been historically heavily
depleted, and as such these are reported as a separate “historic mining” category. SRK
has recommended that further work is required to better understand the potential
economic viability for mining of the lower confidence material. These studies should
include but not be limited to, identification of oxidation (saprolitic material), possibility of
remote mining technologies).
An example of SRK’s Mineral Resource classification is shown for Providencia in Figure 13-13,
and images per deposit are provided in Appendix G.

Page 97 of 168
Figure 13-13: 3D view showing SRK’s Mineral Resource Classification at Providencia

Outside of the Licence is not shown (August 2013)
13.14 Mineral Resource Statement
CIM Definition Standards for Mineral Resources and Mineral Reserves (December 2005) defines
a Mineral Resource as:
“(A) concentration or occurrence of diamonds, natural solid inorganic material, or natural solid
fossilized organic material including base and precious metals, coal, and industrial minerals in or
on the Earth’s crust in such form and quantity and of such a grade or quality that it has
reasonable prospects for economic extraction. The location, quantity, grade, geological
characteristics and continuity of a Mineral Resource are known, estimated or interpreted from
specific geological evidence and knowledge”.
The “reasonable prospects for eventual economic extraction” requirement generally implies that
the quantity and grade estimates meet certain economic thresholds and that the mineral
resources are reported at an appropriate cut-off grade taking into account extraction scenarios
and processing recoveries. In order to meet this requirement, SRK considers that portions of the
Providencia, Sandra K, El Silencio and Carla veins to be amenable for underground mining. SRK
also considers there to be potential for underground mining at Las Verticales, however currently
at lower level of confidence.

Page 98 of 168
SRK has defined the proportions of Mineral Resource to have potential for economic extraction
for the Mineral Resource based on single cut-off grade. An investigation into cut-off grades has
been completed by SRK during 2012 as part of the Company internal assessment of both
Indicated and Inferred Mineral Resources. A summary of the parameters are shown in Table
13-10. SRK highlights to the reader that these parameters have been reviewed as part of the
current PEA, and can be found within Section 15.10 of the current report.
Table 13-10: Summary of 2012 cut-off input parameters

Mine Unit Source
Metal Price USD/oz 1,400 SRK

Processing Recovery 88% SRK
Royalty 4% Zandor
Contractor Cost (where applicable) 57% Zandor
Primary Mining Costs – Room and USD/t 135
Zandor
Pillar
Primary Mining Costs – Longhole USD/t 40
Zandor
Retreat
Secondary Mining Cost – Contractor USD/t 30 Zandor
Secondary Mining Cost – Owner USD/t 200
SRK
Operator
Processing Cost – Maria Dama USD/t 25 SRK
Processing Cost – Pampa Verde USD/t 20 SRK
General and Administrative Cost USD/t 15 SRK
From this data, four cut-off grades are calculated:
x Primary Mining – Room and Pillar 5.0 g/t Au.
x Primary Mining – Mechanised 2.2 g/t Au.
x Secondary Mining – Contractor 4.3 g/t Au.
x Secondary Mining – Owner Operator 6.8 g/t Au.
SRK has used market consensus long term price forecasts based on over 30 contributors and
has then applied an uplift which resulted in the selected gold price; this approach is in line with
other gold producing companies’ reporting methods. To define the economic portion of the
underground Mineral Resource SRK has assumed a grade of 3.0 g/t Au is required over a
minimum mining width of 1.0 m, which essentially removes areas of lower grade material within
thinner portions of the vein. To calculate the cut-off grade SRK has assumed an average mining
cost of USD/t 55 (to account for a variable of primary and secondary mining, and that the current
mining costs are not fixed due to proposed improvements in the underground mining methods
and infrastructure), processing cost of USD/t 25, G&A of USD/t 15, gold recovery of 88%, and a
gold price of USD 1,400/oz.
SRK use of a cut-off grade of 3.0 g/t Au over a (minimum mining) width of 1.0 m, is in line with
the 2012 Mineral Resource Statement. SRK has reviewed this cut-off in relation to the mined
portion of the deposit for verification as an achievable level for economic extraction. SRK notes
some potential upside may exist should mining be achievable using more mechanised methods
in the future as the cut-off could be reduced.

Page 99 of 168
Table 13-11 gives SRK’s Mineral Resource Statement. The statement has been depleted for
mining, discounted for areas falling outside of the Project Concession.
Each of the mining areas have been sub-divided into pillar areas as previously defined, which
represent the areas within the current mining development, and Long-Term Mineral Resources
(“LTR”), which lies along strike or down dip of the current mining development. At Providencia,
the pillars have been subdivided into areas of increased mining of historical areas to provide a
breakdown on the level of confidence.
Table 13-11: SRK Mineral Resource Statement for the Segovia and Carla Projects for
1
Zandor Capital Dated 01 August-2013
Measured Indicated Measured and Indicated Inferred
Project Deposit Type Tonnes Grade Au Metal Tonnes Grade Au Metal Tonnes Grade Au Metal Tonnes Grade Au Metal
(kt) (g/t) (koz) (kt) (g/t) (koz) (kt) (g/t) (koz) (kt) (g/t) (koz)
LTR 200 14.8 95 247 24.6 195 447 20.2 291 88 20.1 57
Providencia Pillars 392 14.8 186

Pillars (Historic
224 26.9 193
Mined Area)2
LTR 263 10.9 92 263 10.9 92 422 8.2 111
Sandra K
Pillars 77 12.3 31 77 12.3 31 14 14.4 6
Segovia LTR 681 11.6 254
El Silencio
Pillars 1309 9.7 406
Verticales LTR 771 7.1 176
LTR 200 14.8 95 510 17.5 287 709 16.8 383 1962 9.5 598
Subtotal
Segovia Pillars 77 12.3 31 77 12.3 31 1715 10.9 599
Project Pillars (Historic
224 26.9 193
Mined Area)2
Subtotal Carla
Carla LTR 154 9.7 48 154 9.7 48 178 9.3 53
Project
1
The mineral resources are reported at an in situ cut-off grade of 3.0 g/t Au over a 1.0 m mining width, which has been
derived using a gold price of USD1,400/oz, and suitable benchmarked technical and economic parameters for
underground mining and conventional gold mineralised material processing. Each of the mining areas have been sub-
divided into Pillar areas, which represent the areas within the current mining development, and Long-Term Mineral
Resources, which lies along strike or down dip of the current mining development. Mineral Resources are not Mineral
Reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the
estimate. All composites have been capped where appropriate.
2
Note Providencia Pillars has been subdivided into areas of increased mining of historical areas to provide a breakdown
on the level of confidence.
SRK notes the following in terms of the above Mineral Resource.
x current grade estimates at Providencia indicate that the high grade shoots continue into
the neighbouring property to the east;
x Mineral Resources have been reported in situ based on modelled geological boundaries
and do not include the additional material required to be mined to satisfy the likely
minimum stoping width; and
x SRK has only reported Measured and Indicated Mineral Resources for the vein areas
(namely Providencia, Sandra K and Carla) where the Company has undertaken a
sufficient level of verification sampling, and completed its own diamond drilling.

Page 100 of 168
13.15 Grade Sensitivity Analysis
The results of grade sensitivity analysis completed per vein are tabulated in Table 13-12 to Table
13-16.
This is to show the continuity of the grade estimates at various cut-off increments at each of the
vein sub-areas and the sensitivity of the Mineral Resource to changes in cut-off. The tonnages
and grades in these figures and tables should not however be interpreted as Mineral Resources.
Table 13-12: Block Model Quantities and Grade Estimates*, Providencia deposit at
various cut-off Grades
Grade - Tonnage Table, Providencia 31 July 2013
Measured and Indicated Inferred
Cut-off Grade
Quantity Gold Quantity Gold
AUM1 (g/t Au over 1 m) (kt) Grade (g/t) Metal (koz) (kt) Grade (g/t) Metal (koz)
1.0 784 13.0 328 1,162 13.1 488
1.5 681 14.6 319 1,033 14.4 477
2.0 594 16.2 310 904 15.9 462
2.5 511 18.2 300 796 17.5 449
3.0 447 20.2 291 704 19.3 436
3.5 392 22.4 282 635 20.9 426
4.0 343 24.8 274 581 22.3 417
4.5 304 27.2 265 541 23.6 409
5.0 281 28.8 260 502 24.9 402
* The reader is cautioned that the figures in this table should not be misconstrued with a Mineral Resource Statement.
The figures are only presented to show the sensitivity of the block model estimates to the selection of cut-off grade. All
figures are rounded to reflect the relative accuracy of the estimate.
Table 13-13: Block Model Quantities and Grade Estimates*, Sandra K deposit at various
cut-off Grades
Grade - Tonnage Table, Sandra K 31 July 2013
Indicated Inferred
Cut-off Grade
AUM1 (g/t Au over
(kt) Grade (g/t) Metal (koz) (kt) Grade (g/t) Metal (koz)
1m)
1.0 489 8.9 139 834 5.4 145
1.5 449 9.4 136 716 6.0 138
2.0 414 9.9 132 606 6.7 131
2.5 379 10.4 127 508 7.6 124
3.0 340 11.2 122 436 8.4 117
3.5 312 11.8 118 373 9.1 109
4.0 294 12.1 115 327 9.7 102
4.5 274 12.6 111 273 10.4 92
5.0 254 13.1 107 235 11.1 84

Page 101 of 168
Table 13-14: Block Model Quantities and Grade Estimates*, El Silencio deposit at
Grade - Tonnage Table, El Silencio 31 July 2013
Cut-off Grade
AUM1 (g/t Au over
1 m)
1.0 - - - 2,804 7.9 715
1.5 - - - 2,629 8.3 706
2.0 - - - 2,380 9.0 691
2.5 - - - 2,159 9.7 675
3.0 - - - 1,990 10.3 660
3.5 - - - 1,853 10.8 646
4.0 - - - 1,710 11.5 630
4.5 - - - 1,570 12.1 613
5.0 - - - 1,442 12.9 596
Table 13-15: Block Model Quantities and Grade Estimates*, Las Verticales deposit at
Grade - Tonnage Table, Las Verticales 31 July 2013
Cut-off Grade
AUM1 (g/t Au over
1 m)
1.0 - - - 1,700 5.0 275
1.5 - - - 1,344 5.7 248
2.0 - - - 1,137 6.2 226
2.5 - - - 962 6.6 203
3.0 - - - 771 7.1 176
3.5 - - - 656 7.4 156
4.0 - - - 554 7.6 135
4.5 - - - 473 7.8 119
5.0 - - - 406 8.0 105

Page 102 of 168
Table 13-16: Block Model Quantities and Grade Estimates*, Carla deposit at various cut-
off Grades
Grade - Tonnage Table, Carla 31 July 2013
Cut-off Grade
AUM1 (g/t Au over
1 m)
1.0 253 6.6 54 297 6.7 64
1.5 229 7.2 53 266 7.3 62
2.0 197 8.0 51 235 7.9 60
2.5 171 8.9 49 207 8.6 57
3.0 154 9.7 48 178 9.3 53
3.5 146 10.1 47 152 10.1 50
4.0 130 10.9 45 136 10.8 47
4.5 123 11.2 44 121 11.4 44
5.0 113 11.7 43 107 12.1 42
13.16 Comparison to Previous Mineral Resource Estimates
In comparison to the previous April 2012 Mineral Resource estimate for the Segovia Project at a
cut-off grade of 3.0 g/t Au over a width of 1.0 m, the new estimate includes additional Resource
material with an increase of 490 koz of gold metal. The increase in gold metal relates to a global
69% increase in tonnage, with a 19% decrease in grade at the economic cut-off. Whilst SRK
attributes these changes most significantly to the addition of data from below Mine Level 29 at El
Silencio, key changes noted per estimated sub-deposit at Segovia (at the economic cut-off) is
noted as follows:
x Providencia: Reduction in tonnage (-8%) due to a newly interpreted eastern bounding fault
and improved definition of high-grade shoot domains, preventing the smoothing of high
(shoot) grades in to lower grade vein areas. Reduced mixing of lower grades in to high
grade (high-grade shoot) areas, in addition to a number of significantly mineralised
intersections drilled in the down-dip area of the Providencia vein (during the latest phase of
exploration), resulted in an associated (+26%) increase in grade.
x Las Verticales: Increase in tonnage (+61%) due to re-interpretation by the Company of

mineralised intercepts (allowing increased thickness and strike continuity) and selected
infill drilling. Reduction in grade (-63%) which (in addition to the incorporating of some
additional dilution) most notably relates to the exclusion of a significant gold sample (0.4 m
at 249 g/t Au) on the basis of the re-interpretation of the “El Silencio South” area, which
carried a large proportion of the Resource in the previous Mineral Resource Estimate.
x Sandra K: Increase in tonnage (+39%) due to additional drilling completed (and additional
underground data acquired) on the Techo and Chumeca veins. SRK noted a reduction in
the grade (-33%) due to improved control on the distribution of higher grades in the model,
as a function of additional data collected during the latest phase of exploration. On the
basis of verification sampling and infill drilling, SRK has quoted Indicated Resources (in
addition to Inferred) on Sandra K for 2013, namely 340 kt at 11.2 g/t Au, providing 122 koz
metal.

Page 103 of 168
x El Silencio: Significant increase in tonnage (+190%) and grade (+50%) due to the addition
of data from below Mine Level 29 at El Silencio, which was not available for the previous
Mineral Resource estimate.
SRK note that a small percentage of this change in tonnage and grade at the Providencia and
Sandra K mines (when compared with the previous Mineral Resource Estimate) can partly be
attributed to the on-going small scale extraction. Given the use of contractor mining and lack of
grade control system SRK has not been able to undertake accurate comparisons in this regard.
At Carla, the new estimate represents a slight reduction in size of the Mineral Resource with a
loss of some 10 Koz of metal at the cut-off of 3.0 g/t Au over 1.0 m. The reduction in gold metal
relates to a global 43% reduction in tonnage, with a 58% increase in grade at the economic cut-
off. SRK attributes these changes most significantly to re-interpretation by the Company of the
Carla vein intercepts, which focused on reducing the dilution at the edges of the mineralised
zone. As a consequence, there has been a significant increase in the mean block grade (+124%)
and reduction to the overall tonnage (-67%).
In addition, SRK considers the following to have also impacted on the gold grade and tonnage of
the reported block estimates at Carla:
x Sampling of the (previously) selectively non-sampled drill core within the mineralised
zones (relating to visually weakly mineralised material), removing the requirement for SRK
to insert trace values (0.001 g/t Au) for the 2013 Mineral Resource Update.
x Improved understanding by the Company of potential high-grade shoot orientation at Carla

has allowed the distribution of high grades to be better reflected in local block estimates.

Page 104 of 168
14 MINERAL RESERVE ESTIMATES

The Project does not have Mineral Reserves and SRK has not derived a Mineral Reserve
Estimate for the Segovia project as part of the current study, which has focused on the Mineral
Resources within the exploration areas drilled during 2012-2013, as not included in the scope of
work.
The Company has not based its production decision on mineral reserves demonstrating
economic feasibility and technical viability. Historically, such projects have a much higher risk of
economic and technical failure; such failure may have a material adverse impact on the
Company’s future profitability.

Page 105 of 168
15 MINING METHODS
15.1 Introduction
SRK completed a site visit to Segovia as part of the 2012 internal review of the Indicated and
Inferred Mineral Resources, between 23 and 24 February 2012. The SRK team included two
mining engineers, and geotechnical engineer, plus a team covering processing, tailings,
hydrogeology and environmental. Since this visit SRK has conducted a desktop review of
information provided by the Company regarding the current status of mining and economic
analysis of the Segovia Project.
The Company currently operates four mines at Segovia; Providencia, Sandra K, El Silencio and
Carla. All four use primary mining techniques, whereas, only Providencia, Sandra K and El
Silencio apply secondary pillar extraction.
In addition the Company is currently in the process of constructing the Pampa Verde project,
accessing the deeper sections of the Providencia Mine, plus shallower sections of the Sandra K
Techo and Carla veins, which is scheduled to finalize by the end of 2014.
15.2 Historical Production
Zandor took control of the Segovia Assets in August 2010. Production records for the period
between FGM’s exit from the operations and the Company’s acquisition are not available, largely
due to the informal nature of production. The following tables present the historical production by
FGM and Segovia.
Table 15-1: Historical production by FGM

Year Tonnage (kt) Gold Ounces Au Grade (g/t) Silver ounces
1869 -1898 141,633
1899 -1954 1,869,991 1,810,725
1957 -2010 8,555,759 2,675,782 9.74 2,936,530
Total 10,425,750 4,628,140 2,936,530
Table 15-2: Segovia Total Production 2011- 2013

Primary Secondary Total
Grade Tonnage Grade Tonnage Tonnage
Year Grade (g/t)
(g/t) (kt) (g/t) (kt) (kt)
2011 9.07 146,935 24.89 41,492 12.56 188,527
2012 6.22 175,345 20.91 85,075 11.02 260,420
2013 4.35 188,401 14.32 139,013 8,58 327,414

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15.3 Mining Methods
Currently, mining within the Segovia Assets takes place in two phases, primary and secondary.
Primary Mining
Primary mining applies a conventional step room and pillar techniques using manual mining
methods. The panels are accessed from the overlying and underlying haulage levels as well as
from down-dip development that breaks the panels up into discrete mining blocks. A loading
chute from which the mined rock can be loaded into the materials handling system is constructed
within the lower haulage level access. Sublevels are then developed along strike with a slight
upwards gradient to make materials handling, using a scraper, simpler. Rooms between the
sublevels are mined creating the room and pillar layout. The inclined sublevels from the central
loading chute gives the mine a slight herring bone look (Figure 15-1).
Figure 15-1: Typical Mining Block Layout taken from Providencia Mine
The Company states that future mining will see pillars centred 6 m apart with a minimum pillar
dimension of 1.5 m by 1.5 m. Sill pillars are left in-situ to protect the haulage levels. Though
these pillars are intended to be equal to the width of the underlying haulage level, the slight
incline in the along-strike development produces pillars that are in effect much larger than this.
Currently, the mining engineers and geologists determine the final pillar sizes during
underground inspections based on their observations and personal experience. The Company
plans to undertake geotechnical studies in 2014 to provide a better understanding of the pillar
requirements to maximise recovery during primary mining.

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SRK notes that the majority of the seams (as viewed in historical mining) do not follow this
template and there is a large variability in the approach to mining each block. However, the vast
majority of historic mining was undertaken by companies other than GCM and therefore cannot
be considered representative of the Company’s approach going forward. SRK recognise that
processes are being implemented to improve the operational efficiencies of the mine which is
intended to deliver more standardised mining practices.
Production is achieved using 32 mm blastholes drilled using an airleg. Blastholes are usually
drilled to 2 m though shorter drill steels are also used. The blastholes are charged using
predominately emulsion cartridges though some ANFO is used. A combination of detonators
(electric and Nonel) and safety fuses are used in the various mining operations. Typically, around
30 drillholes will be used, though the drilling pattern is adjusted to suit the face. Powder factors
average around 1 kg/t. Set firing times are implemented to coincide with shift changes.
The mined rock is moved from the working face to the haulage level using scrapers, from where
it is loaded into a small rail network via a loading chute. The battery-powered locomotives haul a
small number of rail cars with a capacity of around 1 m3 to a grizzly that feeds an inclined shaft.
The inclined shafts use 3 t skips to transport the material between multiple levels. As the inclined
shafts follow the seam, intermediate rail levels are required to transport the payable material
between shafts where the seams are offset by faulting.
Secondary Mining
Secondary mining is achieved using pillar recovery methods. Conventionally, two wooden
supports (approximately 200 mm by 200 mm equivalent to 8” x 8”) are installed adjacent to the
pillar prior to mining. In areas of poor ground, additional pillars may be added. The pillar is then
either completely or partially removed depending on the geotechnical conditions. Minimum
mining heights are approximately 1.2 m, limited by the space required for miners to work
effectively. As secondary mining is more labour intensive, dilution is kept to a minimum to reduce
the amount of material that requires loading by hand.
Drill and blast techniques are similar to what is used for production. Manual methods, including
an airleg with a chisel bit and hand held picks, are used where the pillars are in poor ground
conditions or have begun to fail.
Payable material is hauled by hand from the work face to the haulage levels in sacks of around
40 kg. The bags are stacked in the rail cars and use the same materials handling system to the
surface as primary mining.
Where primary and secondary mining occurs in the same mine, the methods are separated into
distinct production areas to limit interaction. Whilst, occasionally, secondary mining does occur
within the primary mining work areas, this is strictly regulated to minimise the potential impact on
stability in the immediate vicinity of recovered pillars.
The Company plans to undertake investigations into alternatives to timber supports to improve
safety and recovery of secondary mining.

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Development
Development is achieved using airleg drills boring 2.2 m horizontal drill holes. The faces are
charged with INDUFEL Plus AP and ANFO for blasting. Broken material is loaded using a rail-
mounted loader (“rocker shovel”) that pneumatically loads the material into adjacent rail cars.
Once the material is removed, rail tracks and suitable rock support are installed and the process
repeated. This cycle is typically completed once per shift.
There is no rock bolting underground and the rock support is limited to timbering or steel frames.
Much of the development is left unsupported.
Ventraises are extracted using airlegs drilling vertical holes from a constructed staging area. This
staging area is advanced as the raise progressive upward and blasted rock is loaded below
using a rocker shovel. 1.5 by 1.5 m raises are mined initially and then expanded to 4 by 4 m
raises.
Future Mining Methods
GCM intends on introducing mechanised mining methods to its operations in future mining
zones. The mechanisation process will commence in 2014 with the development of the Pampa
Verde project, accessing the deeper sections of the Providencia Mine, plus shallower sections of
the Sandra K Techo and Carla veins. Both development and production are to be achieved using
more modern techniques than applied in the existing operations.
Mechanised mining would employ one of two mining methods; longhole retreat or T-boning.
Detailed production plans using either of these methods are still to be developed based on the
results of the geo-mechanical analysis to be undertaken in the coming year.
Deeper levels are to be accessed through declines, reducing the travel times and increasing
haulage productivity. Detailed development design and ground support parameters are still to be
developed.
Vertical development will continue to be mined using ladder raising techniques, however,
raiseboring is being considered for the longer ventilation raises.
15.4 Providencia Mine

Mining Method
The Providencia Mine is currently split into two mining districts, primary mining is used in the
down dip extension of the reef and secondary mining in the pillars of the historic mining in the
levels above. In current operations, primary mining only takes place below the 10 Level and
secondary above this level to prevent interaction, however, there are minor exceptions.
Access
The mine is accessed via an adit in the side of a hill at an elevation of 682 m above sea level
(“masl”). This extends laterally to the mineralised vein where inclined shafts are used, following
the seam, to access below the adit. The adit and inclined shafts are used for both materials
handling and personnel access.

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The Company currently plan to develop an access decline with a slope of 15% and 7.8 m2 cross-
section. In addition to this the Company will also create a vertical shaft from surface to Level 12,
near to the high-grade enrichment zone. When the entire infrastructure is installed the plan is to
lift run of mine material from Level 12 to surface. To create the lateral access a Sandvik DD210
jumbo is to be used, plus mini-scoops of 1.15 m3 and 7 t trucks.
Production
Primary mining is currently concentrated around the 11 and 12 Levels (approximately 330 to 370
m below the surface adit) in the Providencia vein. The mine operates multiple working faces
simultaneously to produce payable material from primary mining. The Company has recently
switched to using a local mine contractor at Providencia for all the development work,
preparation and production, internal transport, maintenance and minor works. The Company only
employs the supervisory and quality control personnel.
Secondary mining commenced in 2006. The number of pillars required to meet the schedule
largely depends on the grades of the pillar removed. Secondary mining from 2011 to 2013
produced 67,007 t of payable material (40,677 oz of contained gold).
All future development is anticipated to be in seam, except where faults are present, truncating
the mineralised vein requiring connecting drives in waste. The requirements are considered to be
minimal by the Client.
Equipment
Mining in Providencia mine is achieved using hand-held methods. Drilling uses airleg drills and
loading is via scrapers. Haulage is achieved using a small rail network on each level feeding an
inclined shaft equipped with 3 t skips.
In the second half of 2014, ELT 210 mini-scoops, manufactured by MTI (Canada), shall be used
accompanied with 7t low profile trucks built by Young Machine (USA). Drilling will be completed
using a Sandvik (France) DD210 jumbo.
Labour
Providencia Mine utilises the services of contract miners for primary and secondary mining. For
primary mining, approximately 190 miners are employed by the local mine contractor, in addition,
The Company employ 13 people working for coordination and control of scheduled work.
Secondary mining, which is completed by different contractors, currently employs 450 workers.
Dewatering
Providencia uses gravity to drain the mine and groundwater to the bottom haulage level of the
mine where sumps are used to capture and settle the water. Water is progressively pumped to
surface using a series of Flygt and Mono pumps to the surface via each level.
Each level has a gradual incline though flat spots are present resulting in some excessive
pooling of water. Only the access drive contained a purpose built drain with the rest of the
development allowing the water to flow through the centre of the drives. SRK observed no
system of sumps and dewatering holes to drain the mine between levels, rather, the water was
allowed to flow through workings.

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Ventilation
Providencia has a single primary airflow circuit ventilating the mine. Simple ventilation controls
are used to direct the flow of air and 1.2 m diameter secondary ventilation fans are used where
required to target active work areas. Due to the lack of diesel operated machinery the ventilation
requirements are considered low.
Airflow is provided by a single surface fan with a 225 kW motor.
15.5 Sandra K
Mining Method
The Sandra K Mine is currently split into two mining districts, primary mining in the down dip
extension of the reef and secondary mining in the pillars of the historic mining in the levels
above. SRK notes that the smaller footprint of the Sandra K deposits results in less separation of
the two mining activities as observed in the Providencia Mine though the extraction philosophy is
fundamentally the same.
Access
The mine is accessed via an adit in the side of a hill located 605 masl. The adit is use for run of
mine (RoM) transportation, men/materials and as the main ventilation intake. The access adit
and the supporting surface infrastructure is located in the centre of the mineralised vein and
connects with inclined shafts connecting to the levels below.
Production
Primary mining is currently concentrated around the Levels 0, 1, 2 and 3 in the Sandra K Mine.
The Company operates multiple mining blocks simultaneously.
Pillar extraction sequence is undefined in the schedule and the pillars targeted are determined by
the contractors undertaking the mining. These operations are currently focussed on Level 1 and
2. Secondary mining from 2011 to 2013 produced 29,548t of payable material (13,090 oz of
contained gold).
In areas of unstable ground, 1.5 m friction bolts are installed. The Company plans to use friction
bolting in future primary mining as required.
Equipment
Mining in Sandra K Mine is achieved using hand-held methods. Drilling uses airleg drills and
loading is via scrapers. Haulage is achieved using a small rail network on each level feeding an
inclined shaft equipped with 3 t skips.
There are plans to eventually mechanise the lower sections of the reef from the Pampa Verde
Mine.
Labour
The Company currently uses a local mine contractor at the Sandra K Mine who directly employs
approximately 96 miners working on primary mining. The Company employs a further 11 people
for monitoring, control and audit purposes. In addition, a further 260 miners are employed
through a contractor working on pillars extraction.

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Dewatering
The mine is dewatered at a constant rate of approximately 50 L/s from pump stations located at
the 0 and 3.5 levels. From Level 0, the mine water is drained to surface through the adit. SRK
notes that significant improvement in the water management and safety could be achieved
through the implementation of a network of underground drains and drainholes to keep the drives
clear of water.
Ventilation
Sandra K has a single primary airflow circuit ventilating the mine. Secondary fans are used to
direct the flow of air to development mining and, where required, to target active work areas.
Fresh air is provided through the intake adit and exhausted via a 75 m exhaust shaft from
surface with a 30 kW axial fan. Secondary ventilation is achieved with small axial fans
(approximately 7 kW) in development headings.
Noxious gases from blasting take two to four hours to clear depending on the location.
15.6 El Silencio Mine

Mining Method
El Silencio Mine currently applies a combination of primary and secondary mining methods.
Future mining will see the reintroduction of primary methods; however, extensive dewatering will
be required prior to its full implementation.
Where the mineralised zones are thinner, secondary mining is undertaken in a two blast,
‘resuing’ approach. The first stage blasts out the waste and it is spread over the floors to avoid
handling it. The second stage blasts the mineralised portion of the pillar onto the waste rock pile.
The payable material is then separated manually from the waste.
Access
The mine is accessed via an inclined shaft from the surface. The shaft is use for materials
handling, men/materials and as the main ventilation intake. Mine access and the supporting
surface infrastructure positioned in the centre of the mineralised vein.
The El Silencio Mine has undergone extensive historical mining which area is currently largely
flooded below Level 30. Consequently, access to the mine is limited to the upper extents of the
historic workings.
Production
Current mining activities are worked at a depth of approximately 459 m; however, legacy mining
extends 44 levels downwards to a depth of 814 m. The mine is flooded to the 30 Level at a depth
of 518.6 m. All operations are currently limited to above this level though dewatering is on-going
opening up new areas over time.
As with secondary mining in other mines, the pillar extraction sequence is determined by the
contractors undertaking the mining and is focussed on the high grade zones. Between 2011 and
2013, El Silencio mined 163,237t of payable material (90,580oz of contained gold). Blasting at El
Silencio consumes more packaged emulsion than at other operations due to the increased
groundwater content.

Page 112 of 168
Equipment
Mining in El Silencio is achieved using hand-held methods. Drilling uses airleg drills and RoM is
loaded by hand in 40 kg sacks feeding an inclined shaft.
Labour
El Silencio Mine utilises the services of contract miners only. The local primary mining contractor
currently operates with approximately 190 people in mine levels 23 and 26, and once dewatering
reduces the current water level to below the 34 level, production will continue from levels 32 and
34. In addition to this, secondary mining is carried out by a contractor which mines historic pillars
within the mine, employing approximately 650 workers.
Dewatering
Total dewatering outflow from the mine is approximately 150 L/s. Two dewatering pumps are
installed in the inclined shaft at the 21 level and the 5 level. The 21 level pump operates at a flow
rate of 95 L/s. This year it is planned between the Company and the contractors to drain the
mine to level 33.
Ventilation
Fresh air is provided through the main inclined intake shaft. Two surface fans of 30 kW each are
installed on an exhaust adit on the 5 level. Secondary ventilation underground is achieved with
small axial fans (7 kW) in the development headings.
15.7 Carla Mine

Mining Method
No formal design documentation has been provided to SRK for the Carla Mine, however, the
same extraction philosophy is applied to this mine as those currently producing assets.
Initially, only primary mining will take place until sufficient extraction has taken place to undertake
secondary mining independent of primary mining activities.
Access
Access to the mine is currently by an inclined adit in the side of a hill that intersects the
mineralized vein in a central location. In the second half of 2014 the Company plans to start
construction on a ramp which starts from surface to high-grade material on Level 5.
Production
There are no current stoping activities at the Carla mine, though development is underway to
resume production in mid-2014. The mining method is anticipated to be the same as currently
applied in the existing operations.
Equipment
Mining at Carla is currently using similar equipment to the existing mines. A combination of airleg
drilling, rocker shovels loading a rail haulage network and dumping into an inclined shaft for
transportation to the surface. The Company indicated that there is potential for future
mechanisation of the Carla Mine, however, this does not form part of the current LoMP.

Page 113 of 168
Labour
Work completed during Q3 2013 indicates a rate of 2.0 tpd due to the close proximity of the cuts
operated with shaft transportation and storage capacity at Level 1. A similar approach is
expected to be achieved upon completion of the development access (ramp) whereby 30 t will be
loaded from the internal storage hoppers located for each of the Level 2, 3, 4 and 5 to the
processing plant.
Dewatering
The dewatering network is a similar staged pumping setup as discussed for the existing mines.
Dewatering takes place from the 1 Level, using a 25 kW pump over a vertical height of 45m
Ventilation
SRK has not been provided with any detail regarding the proposed ventilation strategy for Carla
Mine.
At the Carla Mine, the ventilation system is currently closed. Secondary fans are used to direct
the flow of air to development headings. With the development of a ramp from surface, the inflow
of fresh air into the workings will be increased. In a first step, the ventilation system will be
opened so that the exhausted air will be extracted through the main inclined exhaust shaft, which
portal is located near where the new ramp will start. In a second step, a second exhaust raise will
be developed.
15.8 Pampa Verde Project
The Pampa Verde project is underway and to be commissioned in late 2014. It will incorporate
the construction of a new 2,500 tpd processing plant and mine development to target the lower
sections of the Providencia and El Silencio veins, and the shallower sections of the Sandra K
Techo and Carla veins.
15.9 Labour
Direct Employment
The Company operates three 8 hour shifts each day, working 6 days per week (approximately
300 work days per year). The total direct labour for all mines is currently approximately 300
workers comprising supervisory, quality control, health and safety and other support functions
within the mining and processing operations. These figures do not include contract labour, which
are largely assigned to the mining activities. GCM states that the average underground miner
has four to five years’ experience; however, there are large numbers of workers with
considerably more experience than this.

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Contract Labour
Contract labour is composed of a local mine contractor who carries out the primary mining and a
number of local co-operatives of miners, mostly former employees of GCM and its predecessors,
with significant local experience, who carry out the secondary mining. There are three major
contractors currently operating at the Company’s mines, representing approximately 85% of
production from secondary mining:
x Providencia Mine – Masora;
x Sandra K Mine – Tierra Adentro; and
x El Silencio Mine – Navar.
There are 31 secondary mining contracts in total, with most due to expire in the latter half of
2014. Typically, these contracts are renewed annually for one-year terms. The total contract
labour for all mines is approximately 1,500 miners. However, only the three contractors
mentioned above make a significant contribution to production at this time. The remaining 28
contracts have contributed less than 15% of the contractor-supplied gold ounces in the past 12
months. The contractors are paid a percentage of the value of the recovered gold from the
payable material delivered to the plant. The gold content is determined by assaying (verified
independently by SGS laboratories) the RoM as it is supplied and a new assay facility is being
constructed at the plant site to assist with this process.
The percentage paid varies between 45% and 62%, and the weighted average (weighted
according to ounces of gold produced) is around 50% of the gold sale price. This rate is then
discounted proportionally to cover the royalty payable by the Company on the gold sale
(approximately 4%) which results in a final contract mining labour cost of approximately 48% of
gold revenue. The contractors are responsible for supplying and maintaining all required
equipment.
GCM directly employs a team, currently comprised of approximately 24 employees, that

coordinates and directs the operations of the contractors. This team conducts visits and audits of
the various contractors operating within the Company’s mines to verify compliance with the
Company’s health, safety, environmental and administrative policies, to verify that they are
working in designated areas in compliance with technical specifications, and to verify compliance
with the Company’s protocols for obtaining explosives permits and the appropriate use and
storage of explosives within the mines.
Whilst the Company does provide an indicative schedule for production, listing production
tonnage and grade, the key measurable for the contractors’ payments is gold content. As the
contract labour is able to determine its own pillar extraction sequence, the priority is on mining
only the high grade pillars where the physical work required to meet the monthly production
targets can be minimised. The Company is in the process of hiring a mine geotechnical engineer
to control mine design and planning and the mining of pillars by the contractors.
Pillars are assayed to determine those with the highest grade; however, the association between
gold and sulphides in the quartz vein means it is relatively simple to determine visually which
pillars these might be. The resulting pillar extraction sequence is therefore not optimised for
geotechnical reasons. The Company stated its intention on changing the current system to
create a more predictable extraction sequence, however, there is uncertainty over the limitations
that result from the existing work contracts.

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The current nature of the contractors’ operations reduces the planning requirements the
Company, however, it presents the following operational risks:
x Lack of control over sequencing of pillar extraction, potentially resulting in sterilisation of

some areas due to geotechnical reasons;
x Limitations on control over additional material being mined from the Company operations
1
and sold separately to local mills, without reimbursement to GCM ;
x Difficulty in reconciling production versus plan;
x Safety risks as poor sequencing may result in roof failure;
x Lack of clarity over accountability in the event of serious injury or death in a Company
operated mine; and
x Difficulty in determining Resource grade and tonnage as there is no survey of mined

pillars.
As noted, the Company employs a team to coordinate and direct the operations of the
contractors and is in the process of implementing additional resources and procedures to reduce
the risks associated with the contractors operating within its mines.
Mine Planning
The mine currently produces a single mine plan covering the mining of all resources. The mine
plan covers both primary mining by the company and secondary mining by contractors.
For primary mining, the mine plan commences by breaking the unmined sections of the reef into
a series of panels. The design of each panel demonstrates a continuation of the current
extraction strategy of placing haulage levels spaced 30 vertical metres apart with the area
between these haulage levels denoted as the panels. The height of each panel is determined by
the gradient of the seam and allows for an employee of reasonable height to walk through the
mine without crouching. In the existing mining areas, this equates to a typical minimum mining
height of 1.2 m. As the seam dip increases towards vertical, the minimum mining height
decreases. The difference between the seam thickness and the minimum mining height is
considered to be planned dilution. However an additional dilution skin of 0.15 m on either side of
the vein is taken into account to reduce losses.
The average thickness and grade of the seam in the mineralised portion of each panel is
determined using observations of the geology within the in-situ development, exploration drill
data and extrapolation from known geological trends. The Company uses the panel area,
3
average thickness and the assumed density of 2.7 t/m , to calculate the tonnage of the
mineralised vein and metal content within the panel, to which the planned dilution is added.
For secondary mining, no design work is undertaken. GCM calculates the required gold
production requirements after primary mining has been scheduled and distributes the required
gold ounces amongst the existing operations. Grades and tonnages are back calculated from the
gold targets, though the nature of the contract mining means that this detail is largely redundant.
The mining contractors determine which pillars they extract and when. No mining losses or
dilution are considered for the mining as the contractors are paid per ounce delivered.
1
SRK is not suggesting this currently takes place at any of Zandor’s operations but is highlighting the
potential risk.
Page 116 of 168
From this basic framework, the mine plan is constructed. Each primary mining panel is assigned
to a year, and a yearly plan is created by totalling all the blocks per mine.
The mine plan only includes three elements, production tonnage mined, anticipated grade of
RoM and ounces of gold contained. Maps are produced for primary mining at all the Assets,
outlining the proposed panels and the year of mining.
The size of the panels varies considerably from 15 t to over 13,000 t of payable material. A
typical panel, however, will contain around 7,500 t. SRK considers this approach suitable for both
long-term and short-term planning, as the small scale of the panels and the detailed mine
designs for the individual mining blocks means reliable short-term planning can take place.
Mine planning within the Company operations is currently in a transitional period. Steps have
been initiated to improve the mine planning at the individual mines. The mine has been split into
smaller, more discrete mining blocks for planning, representing a single loading chute into the
haulage level. This will provide greater predictability in scheduling locations and better
reconciliation of production grades against the processing and block model. Additional personnel
have recently been employed with the intention of improving the mine planning systems and
developing a mine planning strategy within the company.
SRK considers that the current mining plan process to be adequate and approaching
international standards. The lack of a more detailed short-term plan relies on experienced crews
and good front-line management to implement what is essentially a spreadsheet exercise.
Whilst the mine has been producing for many years using these planning systems, albeit using
far larger panels, no reconciliation data was provided as to how well the production has complied
with the previous mine plans. SRK supports the recent initiatives by the Company to introduce a
more robust mine planning process, though the project is in its infancy and the targeted
framework for future mine planning has yet to be finalised.
Another key concern regarding the mine planning process is the lack of planning and
reconciliation of the secondary mining activities. As the pillar extraction sequence is determined
by the individual contractors, the Company has no inventory of which pillars have been mined
and which are still in place (the Company informed SRK that plans are in place for this to be
remedied in the future). Aside from being a safety hazard, it adds considerable uncertainty to the
achievability of the LoMP for secondary mining as there is reduced confidence in the amount of
payable material in-situ available to be mined. As noted, GCM is in the process of hiring a mine
geotechnical engineer to control mine design and planning and the mining of pillars by the
contractors.
There are believed to be over 600 adits and shafts into the various veins worked by the Company
making controlling access into the mine difficult. This creates the potential for unauthorised
extraction of reef material from the mines without the Company knowledge. The Company is
currently in discussions with existing contractors to identify possible methods of restricting access
to the underground workings to those used for legitimate purposes.

Page 117 of 168
Regarding the mine planning of the Segovia Assets, SRK recommends the following:
x The key capital items such as development of haulage levels and internal inclined shafts
for materials handling be incorporated into the mine planning. Currently, there is no ability
to determine when development of the new haulage levels is required to maintain constant
production over the life of the mine.
x Introduce a short term plan, detailing the work required from each work crew or mining
block. Currently, there is very little consideration for what potential interactions may take
place between activities. Scheduling each work crew/mining block as part of a short term,
operational plan will improve predictability of mining and provide greater confidence for the
planning team that the mine plan is being implemented as intended.
x A reconciliation process is to be introduced so the grades and tonnages mined from each
mining block are compared with the planned data. This will allow better prediction of the
modifying factors and hence more reliable planning going forward.
x An inspection of each pillar in the secondary mining zone be undertaken to define which
pillar remain in situ and which have been removed. This should be undertaken on a
regular basis and reconciled against the secondary mining production.
The Company is in the process of developing and implementing policies and procedures to
address SRK’s recommendations above.
15.9.1 Modifying Factors
The modifying factors applied to mining of the Segovia Assets are said to be based on historical
data, however, no reconciliation process has been identified to use as a basis for these figures.
Planned dilution in each panel is a function of the mineralised vein thickness and the minimum
mining height. The dilution is calculated for each level individually. The weighted average for
each mine is provided in Table 15-3. As the mineralised vein is almost always smaller than the
minimum mining height for primary mining, and hand loading (and sorting) is used for secondary
mining, operational dilution is considered to be negligible.
2
Table 15-3: Weighted Average Planned Dilution used in LoMP
Mine Primary Mining Secondary Mining
Providencia 63% 22%
Sandra K 38% 16%
El Silencio 9% 1%
Carla 22% 1%
To estimate mining losses during primary mining, SRK has undertaken a brief analysis on the
survey pickup of mining blocks from each of the three currently operating mines. The analysis
compared the area contained in the regional pillar (rib, sill and geotechnical), operational pillars
and within an individual mining block. The areas selected for evaluation were considered to be
higher Resource extraction than usual.
2
Planned dilution uses the mineralised vein tonnage as the basis for calculation rather than mined
tonnage. Only levels included in the LoMP have been used for these calculations.
Page 118 of 168
The analysis showed that the regional pillars were on average 33% of each mining block. Of the
remaining area available for production, 72% was extracted. These figures relate to historic
mining and do not necessarily relate to how the Company plan on mining the deposit in the
future.
The present assumption is that primary mining will result in 20% mining losses through pillars.
However, SRK considers that additional losses are most likely required for regional pillars. The
Company is planning geo-technical evaluations this year which should determine the
requirements for regional pillars and the most likely recovery from secondary mining.
The Company LoMP assumes that due to the relatively high dilution and the selective nature of
the mining method applied, operational mining losses are negligible.
15.10 Cut-Off Grade
The assumptions used for the derivation of operating costs used in the cut-off grade calculations
were taken from the Company estimates used for its internal budgeting and financial modelling.
SRK has reviewed the numbers applied and made adjustments where applicable
Table 15-4: Cut-Off Grade Assumptions

Mine Unit Source
Metal Price (LoMP forecast average) USD/oz 1,198 SRK

Processing Recovery 90% SRK
Royalty 4% Zandor
% of gold 50%
Secondary Contractor Mining Cost Zandor
price/oz
Primary Mining Costs – Room and USD/t 101
Zandor
Pillar
3
Secondary Mining Cost – Internal USD/t 8 Zandor
Processing Cost – Maria Dama USD/t 25 SRK
Processing Cost – Pampa Verde USD/t 20 SRK
General and Administrative Cost USD/t 15 SRK
From this data, two cut-off grades are calculated:
x Primary Mining (Room and Pillar) - 5.6 g/t Au
x Secondary Mining (Contractor) - 3.8 g/t Au
SRK notes that the nature of the contractor payment schedule for secondary mining (linking
costs to gold price) means that as the grades or metal price reduces, so do the mining costs
making the economic cut-off relatively low, compared to the relatively fixed nature of owner-
operator mining based on tonnes mined. When grades go higher, the costs increase in line with
this, hence even though the contractors may have a lower cut-off grade, it may not necessarily
be the most economic method given the metal prices achieved and grade being mined at any
particular time.
3
These are costs above the payments to the contractors referred to ‘Internal Costs’.
Page 119 of 168
15.11 Life of Mine Plan
For the company (primary) mining operations, the resources at Providencia, Sandra K, El
Silencio, and Carla (Segovia Gold) have been split in blocks. For each of these blocks, the
thickness is being used to determine the dilution incurred during mining. A minimum mining
height of 1.2 m and a minimum total dilution skin of 0.3 m have been used to determine the
dilution. An overall mining recovery of 80% is assumed. The planning process has been
evaluated by SRK and is deemed adequate. SRK has also evaluated the resources used in the
planning and despite using a proportion of Inferred resource in the later years, SRK deems that
the mining plan is covered by the available resources.
For the small miner (secondary) operations at Providencia (Masora), Sandra K (Tierro Adentro),
El Silencio (Navar) and various other areas, general plans are used to indicate the yearly
planning of these areas. No detailed pillar plans exist. SRK has compared the planned mineable
material with that available in the pillar Resources and has deemed that the planned tonnages
and grades are covered.
The Life-of-Mine plan is based on all available geological information. Not all of this information is
of sufficient confidence to be considered a Resource. A limited amount of material is being mined
in 2014, consisting of the Manto area in El Silencio.
The quantity and grade of mineable material are calculated for each level by applying the
modifying factors and filtering against the derived cut-off grades. The assumption is also made
that a level requires a minimum of 5,000 g of gold in order to justify extending the mine to that
level, any less than that and the level is removed from the LoMP. For secondary mining, access
is already available so no such constraints exist.
Going forward, SRK notes that the Company expects a substantial increase in production from
the present 100 koz per annum to around 150 koz per annum from 2015 onwards. This is based
on (i) having more working available as a result of focus on development works in the primary
mining areas at Providencia, El Silencio, Sandra K and Carla; (ii) a ramp up in 2015 of the small
miners’ production facilitated by an increase of the hoisting capacity at El Silencio from 450 tpd to
900 tpd and an investment in 2014 to upgrade the Providencia shaft as part of the Pampa Verde
Project plan; (iii) the appointment of a new contractor for secondary mining at the El Silencio
mine, and the dewatering of the lower levels, presently inaccessible due to flooding; and (iv) the
construction of the new Pampa Verde processing plant with a higher throughput of up to 2,500
tonnes per day.
Overall, however, SRK considers the remaining proposed increase in production to be

achievable (assuming there are sufficient Resources) for the following reasons:
x The mining method is labour intensive and modular such that production can be increased
with relatively little capital outlay by employing additional crews;
x There is a strong mining culture within the local district suggesting that there are adequate
experienced miners available to fill the roles required;
x Zandor states that the current materials handling network is adequate to move the
tonnages required for the scheduled production; and

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x As there is no diesel equipment and the ventilation system is simple for the existing mines,
few changes to the existing ventilation configuration would be required to increase
production.
The Company has produced a LoMP based on the current Resources (including Inferred)
estimated for the Zandor Assets
In producing the LoMP, the Company has made the following assumptions:
x The processing capacity is 547.5 kt in 2014 and 1,040.3 kt after the Pampa Verde plant is
commissioned (547.5 kt in Maria Dama and 912.5 kt in Pampa Verde);
x Once both processing plants are operating, all primary production is sent to the Pampa
Verde plant and production from secondary mining is assumed to be sent to each plant
proportional to their relative operating capacities until the production starts to decrease
and the Pampa Verde plant operates in isolation;
x Only panels above cut-off grade have been included in the LoMP;
x It is assumed that a panel requires 5,000 g of gold as a minimum to justify the

development and establishment costs for primary mining. For secondary mining areas
where the infrastructure is already in place, there is no minimum metal requirements
applied;
x Carla is to commence production in 2014;
x Primary mining for Providencia, Sandra K, El Silencio and Carla have a minimum mining
width of 1.2 m with a secondary minimum mining width of 0.8 m; and
x Primary mining can be replaced, where required by the equivalent number of tonnes by
secondary mining with minimal capital requirements. The additional costs of mining are
captured in the higher operational costs that would be applied.

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Table 15-5: Overview of Life of Mine Plan (*)
Production Forecast Total 2014 Total 2015 Total 2016 Total 2017 Total 2018 Total 2019 Total 2020
Primary Mining
MINA PROVIDENCIA
Tonnes mined 71,327 87,351 69,951 50,361 38,072 -
Head grade (g/t) 7.02 10.45 14.69 20.05 18.17 -
Contained gold (ozs) 16,091 29,342 33,038 32,463 22,235 -
MINA SANDRA K
Tonnes mined 64,977 128,886 142,529 76,761 48,334 -
Head grade (g/t) 4.67 5.80 5.52 9.53 3.57 -
MINA CARLA
Tonnes mined 46,698 57,494 60,223 85,448 84,524 -
Head grade (g/t) 9.93 5.23 5.03 4.30 3.78 -
MINA EL SILENCIO
Tonnes mined 81,006 86,520 168,653 164,009 169,481
Head grade (g/t) 11.91 9.85 6.82 9.06 6.20
Contained gold (ozs) 31,013 27,397 37,006 47,781 33,790
Manto (El Silencio)
Tonnes mined 65,000
Head grade (g/t) 8.00
Contained gold (ozs) 16,718
TOTAL COMPANY-OPERATED - Mining

Tonnes mined 248,002 354,737 359,223 381,224 334,938 169,481 -
Average mill head grade 7.21 8.25 8.26 8.55 7.97 6.20 -
Contained gold 57,479 94,047 95,454 104,804 85,826 33,790 -
Secondary Mining
MASORA (PROVIDENCIA)
Tonnes mined 43,500 60,000 60,000 60,000 60,000 60,000 60,000
Head grade (g/t) 13.50 12.50 12.50 12.50 12.50 12.50 12.50
Contained gold (ozs) 18,881 24,113 24,113 24,113 24,113 24,113 24,113
TIERRO ADENTRO (SANDRA K)
Tonnes mined 3,500 - - - - - -
Head grade (g/t) 8.37 - - - - - -
Contained gold (ozs) 942 - - - - - -
NAVAR (EL SILENCIO)
Tonnes mined 66,125 135,000 135,000 135,000 75,000 112,500 135,000
Head grade (g/t) 15.18 11.70 11.70 11.70 11.70 11.70 11.70
Contained gold (ozs) 32,272 50,782 50,782 50,782 28,212 42,318 50,782
OTHERS
Tonnes mined 35,926 - - - - - -
Head grade (g/t) 5.10 - - - - - -
Contained gold (ozs) 5,891 - - - - - -
TOTAL Contractors - Mining

Tonnes mined 149,051 195,000 195,000 195,000 135,000 172,500 195,000
Average mill head grade 12.10 11.95 11.95 11.95 12.06 11.98 11.95
Contained gold 57,985 74,895 74,895 74,895 52,325 66,431 74,895
TOTAL Contractors - Milling

Tonnes milled per day 497 650 650 650 450 575 650
Mill Recovery 88.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0%
Total gold production (ozs) 51,027 67,406 67,406 67,406 47,093 59,788 67,406
Total Company
TOTAL Company - Mining

Tonnes mined 397,053 549,737 554,223 576,224 469,938 341,981 195,000
Average RoM grade 9.05 9.56 9.56 9.70 9.14 9.12 11.95
Contained gold 115,464 168,943 170,349 179,699 138,152 100,221 74,895
Tonnes milled per day 1,324 1,832 1,847 1,921 1,566 1,140 650
Total gold production (ozs) 101,609 152,048 153,314 161,730 124,337 90,199 67,406
Total silver production (ozs) 111,770 167,253 168,646 177,902 136,770 99,219 74,146
(*) SRK notes that these tonnages are not considered Mineral Reserves prepared in accordance with an international reporting code.
Production schedule is inclusive of 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 preliminary
economic assessment will be realized.

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15.12 Conclusions
Based on the review of the Company LoMP and limited technical work undertaken as part of the
PEA, SRK concludes the following;
x The LoMP developed for the Zandor assets has been undertaken at a level of detail
suitable for a preliminary economic assessment and SRK therefore considers there to be
further potential for optimisation of the plan. There is potential for additional material to be
added to the Resource through further drilling in the existing mining areas and of additional
veins identified by the Company to extent the mine life.
x The contained gold production for each mine has been levelled, resulting in a varying
tonnage production. However, by proper planning by the Company, the overall processed
tonnages are reasonably stable.
x The Secondary mining phase is continuing after the Primary mining phase with an
associated lower mill throughput.
x SRK notes that the individual mines are currently extracting material that is not included in
the current Resource model and there is significant scope for the current Resources to be
expanded through additional drilling. As a result, whilst the 5-year plan produced by GCM
is considered generally achievable, SRK believes mining of these areas of lower
geological confidence will be required to account for the shortfall in the LoMP.
x The Company will be able take advantage of the 1500 t/d capacity at Maria Dama in 2014
as mine production ramps up during the construction phase of the new 2500 t/d mill at
Pampa Verde. However, the long-term requirement for the Maria Dama plant should be
reviewed as more information becomes available considering the 2500 t/d capacity
ultimately available at the new Pampa Verde plant and the currently forecast LoMP mine
production plans.
Recommendations
Based on the review of the Company’s LoMP and limited technical work undertaken as part of
the PEA, SRK recommends the following;
x The exploration program that is supported by this Technical Report is implemented with a
view to upgrading the knowledge of the deposits in order to classify reserves in
accordance with the CIM Code as part of future revisions to the mine plans;
x More investigation and analysis is undertaken into the costs of production from the various
areas in order to get a better handle on cut-off grades;
x Better tracking and monitoring of the secondary mining activities is carried out in order to
improve safety, accountability and reconciliation;
x More detailed short term underground mine planning is undertaken to optimise and
implement the LoMP generated by the Company.
x Detailed development designs, ground support parameters, and production plans are still
to be developed based on the results of the geo-mechanical analysis to be undertaken in
the coming year.

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16 RECOVERY METHODS
16.1 Introduction
In preparing these sections of this report relating to Mineral Processing and Metallurgical testing,
SRK has relied upon previous Technical Reports produced by SRK as part of the internal
assessment of Indicated and Inferred Mineral Resources expanded with new information
supplied by the Client on the Pampa Verde plant.
16.2 Mine Laboratory
During a 2012 internal assessment of both Indicated and Inferred minerals, the Company noted
the plan for future samples to be analysed in a new laboratory, located adjacent to the Maria
Dama plant at SGS, which would be operated by SGS personnel. An offer to operate the
laboratory has been received from SGS who have also advised requirements for the laboratory
facilities, which are to be procured and constructed by the Company.
The Company informed SRK that since 01 September 2013, all samples have been sent to
SGS’s laboratory facilities in Medellin. With the help of SGS, the Company is working to have all
the sample preparation facilities moved to Segovia. Such facilities are expected to be ready in
2014.
16.3 Maria Dama Plant
In August 2010, when the Company purchased the property, the existing processing plant had a
capacity of 400 tpd. The Company implemented a process to increase the capacity of the plant to
1,500 tpd. The improvements implemented by Q3 2011 resulted in an increased gold recovery at
the Maria Dama mill to 90% and it is reported that the average throughput for 2011 was 525 tpd.
In late September 2011, a new crusher and screening system was put into operation increasing
the plant capacity to 700 tpd. The Company acquired a new ball mill to replace four existing
smaller ones. The new ball mill was installed in December 2011, and has been in operation since
May 2012 with a capacity of 1,500 tpd. However, it is noted that the downstream processes
(flotation, thickeners, regrinding) limit the overall plant capacity to about 1,300 tpd.
For the period from January to December 2013, the plant throughput averaged 897 tpd.
16.4 Maria Dama Plant Flow Sheet
It is reported that the plant treats a combination of high-grade and low-grade Run-of-Mine
material (“RoM”). The high-grade RoM is brought above ground in sacks and is crushed
separately from the low-grade RoM. The simplified process flow sheet for the plant is shown in
Figure 16-1.
The high-grade and low-grade RoM are crushed and stored in separate bins. Slimes from
washing of the high-grade RoM during the initial phase are sent directly to the mill and/or the jigs.
The finely crushed RoM is processed through the primary mill. The mill discharge is classified in
hydrocyclones. The coarse fraction is recycled to the mill via a gravity concentrator which
recovers a high grade concentrate. The concentrate is collected and batch treated in the smelt
house. The hydrocyclone overflow is pumped to the flotation cells to recover the sulphide
minerals which contain additional gold and silver. The flotation tailings are dewatered and
pumped to the tailings storage facility (“TSF”).

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The flotation concentrates, constituting 10% by mass of the feed, are combined and reground in
two mills and are thickened and pumped to the cyanide leach circuit. The solids are leached in
four leach tanks and the leach discharge slurry, containing the gold and silver in solution, is
discharged to five counter current decantation thickeners (“CCD”) where the pregnant solution is
separated from the leached solids. The pregnant solution from the first CCD thickener is sent to
the Merrill Crowe plant where gold and silver are precipitated by zinc powder. The barren
solution from the Merrill Crowe plant is re-circulated back to the leach feed thickener.
The leached residue contains a significant amount of lead mineral which is considered
environmentally hazardous. The lead containing minerals are separated by flotation. The lead
flotation tailings are combined with the sulphide flotation tailings and are pumped to the TSF. The
lead concentrate is filtered and stored.

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Figure 16-1: Maria Dama Plant Block Diagram Flowsheet (supplied by Zandor)

Page 126 of 168
16.5 Pampa Verde Plant

Introduction
The Pampa Verde project is a grass roots project which will access the existing Segovia
Operations via existing underground access to the current mine workings and a new treatment
plant. The underground working will consist of a shaft built to access Level 12 of the Providencia
mine, with ramps built to additional levels, plus a decline ramp from surface at Carla to access
high-grade material located at Level 5.
The capacity of the new treatment plant will be 2,500 tpd. The plan is for the new Pampa Verde
plant to process all material mined by GCM which if practical will be transported underground to
avoid surface transport through built up commercial and residential areas on generally unsuitable
roads.
The Pampa Verde project has initially been undertaken by AUSENCO (Lima office) on a fast
track basis in that the project is to be started without the execution of a feasibility level study to
investigate alternative flowsheets and establish detailed capital and operating costs. The plant
flowsheet and design will be based in principle on the current Maria Dama operation and will
incorporate grinding and the production of a sulphide concentrate which will be reground prior to
cyanidation. In order to reduce the project construction period, the flowsheet and plant design will
not be tailored specifically to the Segovia ROM material but will incorporate standard, off-the-
shelf, plant designs from other projects previously undertaken by AUSENCO. However some
supporting testwork will be undertaken to confirm the suitability of the proposed design.
A new basic engineering study was carried out, based on a metallurgical study performed by
GEOMET. This study identified the necessity of recovering the free gold by gravity methods.
The basic and detailed engineering was undertaken by INDISA, a Colombian engineering firm,
which worked under the supervision and support from the Pampa Verde processing team, and
AUSENCO.
Metallurgical Treatment Plant and Supporting Investigations
The plant flowsheet and design will be based in principle on the Maria Dama plant and
parameters established from that operation. The flowsheet will also incorporate some more
modern technology including Semi-Autogenous Grinding (“SAG”) and carbon adsorption for
precious metals recovery. The gold to silver ratio is suitable for metal recovery using activated
carbon.
Some metallurgical testwork will be undertaken to optimise the circuit design and this will
generally be limited to comminution tests including SAG and ball mill testwork on the Segovia
ROM material to provide design data for sizing the SAG and ball mills, and other supporting
testwork such as cyanide leaching tests and tests to establish the carbon adsorption kinetics and
equilibrium data.
The aim of the fast track project is to have the plant operating in the shortest period of time and
hence it is planned to design and construct a relatively conservative plant rather than to optimise
the plant design related specifically to the Segovia ROM material.

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Proposed Pampa Verde Plant Flowsheet
It is indicated that the proposed Pampa Verde flowsheet will incorporate the following process
steps:
x Primary crushing to 80% < 370mm using a 44” x 48” opening jaw crusher
x Storage of crushed RoM in a 2,800t (24h) live storage bin
x Milling in a two stage SAG and ball mill circuit to 80% -106 micron using
o Open circuit SAG mill (22 ft diameter x 7 ft length) - 1,750 kW
o Closed circuit ball mill (15 ft diameter x 22 ft length) – 3,000 kW
o Crushing of oversize pebbles from the SAG mill discharge using a 3 ft cone crusher
x Classification of the ball mill product using a cluster of 20 inch hydrocyclones with the
underflow returning to the ball mill and the oversize reporting to flotation.
x Recovery of an initial sulphide concentrate in the milling circuit from a portion of the
classifying cyclone underflow using a flash flotation cell.
x Recovery of a sulphide flotation concentrate using two parallel lines, each containing six
30m3flotation cells.
x Thickening of the flotation tails to 50% solids and transfer to a new tailings storage facility
(TSF) along with the tails from the CIL circuit after detoxification.
x Regrinding of the combined flotation concentrates to 80% -45 micron using an 8 ft

diameter x 12 ft length regrind mill fitted with a 420 kW motor.
x Classification of the regrind mill product in a cluster of hydrocyclones and return to the mill
from the cyclone underflow.
x Thickening of the regrind cyclone overflow to 45% solids in a high-rate thickener.
x Carbon in leach (CIL) processing of the thickened reground concentrate in nine stage
leach train of 150 m3 tanks.
x Cyanide destruction of the CIL tails using copper sulphate and sulphur dioxide (INCO
process using sodium metabisulphite).
x Recovery of loaded carbon from the CIL circuit with acid wash and elution of carbon in 4t
batches.
x Regeneration of the stripped carbon in a diesel fired rotary regeneration kiln prior to return
to the CIL circuit.
x Recovery of gold from the eluate onto stainless steel mesh cathodes in a 1.2m x 1.2m
electrowinning cell.
x Pressure washing of the electrowon gold from the electrowinning cell cathodes
x Drying and smelting with fluxes of the recovered electrowon gold in a diesel fired smelting
furnace.

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The receipt, make up and distribution of the following reagents are also included in the scope of
the plant:
x Steel grinding balls (SAG, Ball, Regrind);
x Quicklime;
x Sodium cyanide;
x Sodium hydroxide;
x Hydrochloric acid;
x Flotation reagent (xanthate collector, promoter, frother,);
x Flocculant; and
x Sodium Metabisulphite (for cyanide destruction – SO2 source)
The plant will also be supported by the usual services providing process, potable, recycle and
make up water, compressed and instrument air although details are still to be presented. The
following Figures 15-2 and 15-3 present the block and the detailed flowsheet of the Pampa Verde
plant.
Infrastructure and Service
Power for the new project will be supplied from the grid via the existing La Cruzada substation.
Additional feeder equipment will be installed in a spare bay in the substation and a 44.5 kV
powerline will be constructed by the power supply company to the proposed site of the Pampa
Verde plant. This project is due to be completed in August 2014. A total power requirement of
8 MW is anticipated covering the Providencia mine, plant, tailings, services and infrastructure.

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Figure 16-2: Pampa Verde Plant Block Diagram Flowsheet (supplied by Zandor)

Page 130 of 168
Figure 16-3: Pampa Verde Plant Flowsheet (supplied by Zandor)

Page 131 of 168
Current Status and Production Execution
In 2013, the company purchased some of the mineral processing equipment required for the new
Pampa Verde processing plant for USD 4.3 m. This purchase included the SAG and ball mills,
which are typically long lead time items. The mills are reconditioned and have a capacity of
3,500 tpd. The other equipment purchased included crushing feeders, cyclones and pumps,
flotation cells and pumps, regrind pumps, CIL loaded carbon screen and pumps, carbon
regeneration kiln and screen, and cyanide destruct equipment. All of the aforementioned items
are new and include many spare parts.
Plant construction completion and the start of commissioning are planned for end Q1 2015 with
the plant operating at full capacity by June 2015.
Access to the site area for large equipment is indicated to be relatively difficult and a detailed
survey will need to be undertaken into potential transport routes and improved access locally to
the mine site area avoiding if possible built up area where access is seen to be limited. Access
roads construction began in December 2013, once the routes had been established, and the
relevant easement contracts negotiated. As of February 2014, excavations at the plant site are
70% advanced and road construction is 15% advanced.
The Company will be implementing a tailings filtration (dewatering) process in the mill design so
that the tailings can be dry stacked in a designated area, and are currently completing technical
analysis to optimise this process. This capital cost is included in the Pampa Verde budget. The
area for the dry stacked tailings contains a saprolitic layer which will prevent seepage. Drainage
channels and bunds will be constructed to contain the dry tailings. The existing tailings facility will
also be used if required.
SRK Comments
SRK consider that the plan to perform limited metallurgical testwork for Pampa Verde plant
design represents a project risk in terms of overall metallurgical performance (metal recoveries)
and equipment sizing. It is important that with limited testwork sufficient design margin is
incorporated in to the grinding mill sizing in order to ensure that the necessary grind size can be
achieved for the range of ore types that may be encountered. Also the leaching circuit should be
oversized to ensure that the leach residence time is sufficient to achieve the design metal
extractions. Space should be allowed in the layout to incorporate additional leach tanks if found
necessary.
Based on the preliminary information available, the proposed plant appears to be suitable for the
treatment of ROM material from the Segovia area. Some confirmatory testwork is required to
verify the selection of the SAG / ball mill configuration, finalise design parameters and to confirm
the requirements for a crushing circuit on critical sized material from the SAG mill. Testwork is
also required to confirm leach and carbon adsorption kinetics and predicted loadings. A
metallurgical study was conducted by GEOMET, with the following results:
x Recommendation to install gravity concentration circuit after the mill
x Recovery using flotation and leaching is estimated to be 93%
x Recovery using intense cyanidation and direct leaching is 92% but the five times higher
consumption of cyanide increases operating costs.

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The capital cost would appear to be generally realistic for the plant being considered although
possibly towards the lower end of the expected cost range.
16.6 Segovia Metallurgical Treatment Plan

Life of Mine Plan
The historical tonnages and those according to the present Life of Mine plan are shown in the
following graph.
50,000 50.00
Secondary mining Monthly tonnages and grades, historical and planned

45,000 Primary mining 45.00
Grade Primary mining
40,000 Grade Secondary mining 40.00

Grade Overall
35,000 35.00
30,000 30.00
Production (t/month)
Grade (g/t)
25,000 25.00
20,000 20.00
15,000 15.00
10,000 10.00
5,000 5.00
- -
May-12
May-13
Dec-12
Dec-13
Apr-12
2017
2018
2019
2020
Jun-12
Apr-13
2014
2015
2016
Jan-12
Mar-12
Aug-12
Oct-12
Jun-13
Nov-12
Jan-13
Mar-13
Aug-13
Oct-13
Nov-13
Feb-12
Jul-12
Sep-12
Feb-13
Jul-13
Sep-13
Figure 16-4: Processing Monthly tonnage historical and planned production
As the planned capacity of the Pampa Verde plant is around 75,000 t per month the production
capacity is constrained by the mines and not by the plant.
Throughputs and Recoveries
Forecast throughput figures are generally in line with the plant expansion plans and construction
and commissioning of the new Pampa Verde plant. In the long term it is noted that the available
processing facilities at Maria Dama and Pampa Verde have a significantly higher processing
capacity than the forecast LoMP production.
Gold recoveries on the existing Maria Dama plant, reported by the Company, are around 88 –
90% based on the current modifications and optimisation, SRK have used a gold recovery to
doré of 88% in 2014 and 90% for the remainder of the plan. A silver recovery to doré of 60% is
predicted.

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16.7 Opportunities and Risk

General
The following opportunities and risks have been identified.
Identified Opportunities
x Opportunity to increase overall treatment rate to 3800 tpd by operating the two plants
simultaneously, which is in excess of the LoMP mining plans; and
x Production of a lead concentrate for the Pampa Verde CIL tailings could increase potential
plant revenue although the overall economics considering the transport and potential
treatment costs for the concentrate still need to be assessed.
Risks
Maria Dama plant
x Old – low availability and high maintenance anticipated;
x Labour intensive;
x Current sampling and accounting system inadequate to monitor plant performance and
specifically payment term for feed material sourced from independent miners; and
x Current gold accounting system does not assess unaccounted gains and losses.
Pampa Verde project
x Plant will not be optimised and hence higher capital and operating costs may be incurred;
and
x Production capacity of the mines is less than the processing plant capacity which could
results in sub-optimal operation of the plant and higher operating costs than planned.
x Forecast capital costs could exceed expectations.
16.8 Conclusions
The overall plan to increase the capacity at Maria Dama plant appears to be on track, although
the plant has not yet been operated at the new design capacity. A comprehensive mine to plant
reconciliation process has not been implemented and therefore the plant recovery is not proven.
The long-term requirement for the Maria Dama to be able to process 1,500 tpd is queried
considering the installation of the new Pampa Verde plant with a capacity of 2,500 tpd and the
currently forecast LOM mining production plans.
The installation of a new treatment facility at Pampa Verde plant using new equipment and
current gold processing technology is seen to be sound and it may also be possible to increase
treatment capacity above the nameplate figure of 2,500 tpd with minimal additional changes and
incurred expense if a conservative process and engineering design is initially adopted.
Operating the Pampa Verde plant below full capacity is likely to increase the operating costs.

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16.9 Recommendations
Based on the relatively brief review that has been undertaken, the key recommendations based
upon the metallurgical review are as follows:
x The plan to expand the Maria Dama is prepared in more detail in terms of design,
schedule and costing;
x the metallurgical accounting system at Maria Dama should be improved; and
x The long term milling requirement for the Maria Dama plant should be re-visited in the light
of the expected tonnages from the secondary mining and the general over-capacity of the
processing plants.

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17 PROJECT INFRASTRUCTURE
SRK has not completed a detail study of the project infrastructure as part of the current study,
which has been focused on the Mineral Resources. The process facility is discussed in Section
16 of this report, and a summary of the power generation capability detailed below.
17.1 Power Generation
The Company owns three hydroelectric power generation plants built in the 1930s on rivers
called Doña Teresa No. 1, Doña Teresa No. 2 (located on La Cianurada Creek) and Pocuné, The
three plants contain 11 generators (5 of 200 kiloWatts (“kW”) / 250 kilo Volt Amperes (“kVA”) and
6 of 400 kW / 500 kVA) with the capacity to produce a total of 4,250 kVA or 3,400 kW. The
Company currently has planned a project to build a hydroelectric power plant with an installed
capacity of 8.5 Megawatts in the Doña Teresa area, in order to replace the existing Doña Teresa
No. 1, Doña Teresa No. 2 plants. During the process the Company plans to change the
frequency from 50 Hertz (“Hz”) to 60 Hz. The new plant is currently planned to enter service in
the second half of 2014. The Company also are investigating the feasibility of upgrading the
Pocuné plant with an installed capacity of 600 kW and a frequency of 50 Hz
The Company also has three diesel power plants, which are used as backup in case of general
network failure. The plants are located at:
x One at the Providencia mine with a capacity to generate 750 kW;
x One at the Maria Dama mill with a capacity of 1,100 kW;
x One at the Sandra K mine with a capacity of 1,100 kW;
The output is at 50 Hz frequency and 550 Volts (“V”). Transformers step up the voltage to 11 kilo
Volts (“kV”) for transmission to the substations where the voltage is stepped down to 500 V,
220 V and 110 V, according to requirements.
In addition to the power generated from the hydroelectric plants, the Company can also access
power from the commercial power network called Empresa Públicas de Medellín (“EPM”). At
each “load” center the input voltage is 13,200 V, with a frequency of 60 Hz, which is transformed
down by substations to 480 V to feed motors, and 220/110 V for general use in lighting circuits
and electrical outlets.

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18 MARKET STUDIES AND CONTRACTS

No specific market studies have been undertaken for the purposes of the current study. SRK
understands that there are no contracts in place that are material to the issuer that are required
for property development.

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19 ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR

COMMUNITY IMPACT
SRK has conducted a desktop review of information provided by the Company regarding the
current status of environmental and social management of the Segovia Project. SRK’s
comments are based on this information and a short site visit conducted in February 2012 as part
of an internal review of Segovia for the Company. The environmental and social review does not
cover the Carla Project as no site visit has been carried out to this site and reviewed
documentation relates only to the Segovia Project.
19.1 Setting
The local topography is characterised by a low-lying plateau at 600 to 850 m altitude, incised by
steep valleys. The climate is tropical with an annual average temperature of 24.9°C and average
annual rainfall of approximately 2,720 mm/year, predominantly falling between April - November.
The drainage pattern across Segovia is dendritic; the northeast and west of the licence area
drains north into the Nechi River, which is influenced by artisanal mining operations. The Ité
River to the east of Segovia flows southeast and then northeast into the Magdalena River. The
vegetative cover across the landscape consists of disturbed grassland (used mainly for mining
and livestock rearing activities) interspersed with fragmented forest patches, mainly along
drainage lines within the incised valleys. Forest patches provide important habitat for wildlife.
The operations are located within the town of Segovia, which has been a centre for gold mining
for more than 100 years and the environmental and social setting is strongly influenced by this.
Mining, both formal and informal, is the main economic activity in both Segovia and the
neighbouring town of Remedios, which is approximately five kilometres from Segovia. Informal
processing operations in these towns using basic technology has resulted in poor health and
safety conditions and widespread water contamination from discharge of tailings and waste
directly into the environment. This has led to a prevalence of mercury-related health problems in
the local populations. Health issues related to population influx are also common.
19.2 Environmental Permitting
Mining in Colombia is governed by the Mining Law 685 of 2001. Environmental laws applicable to
the mining industry include Law 99 of 1993 creating the Ministry of the Environment, Decree No.
1220 of 2005 in relation to environmental licences, Decree 1320 of 1998 regulating consultation
with indigenous communities for exploiting natural resources within their territory and Law 1333
of 2009 on environmental sanctioning procedures. These laws require new mining projects to
post an Environmental Mining Insurance Policy and prepare an Environmental Impact Study,
which is approved by means of an Environmental Licence.
The Segovia project is located in mining title RPP 140, which existed before the enactment of
Law 685 and continues to be valid under the terms and the applicable legislation at the time the
title was granted. RPP 140 is therefore exempt from posting an Environmental Mining Insurance
Policy and obtaining an Environmental License. From an environmental perspective,
developments within RPP 140 are permitted through the posting of an Environmental
Management Plan (“Plan de Manejo Ambiental”) (PMA) and secondary permits for water
abstraction, forest use, air emissions, discharges and construction within river courses. The
departmental environmental authority responsible for issuing permits for the Segovia Mine is
Corantioquia (Autonomous Regional Corporation of Antioquia or Corporación Autónoma
Regional de Antioquia).

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The PMA for the Segovia Project was submitted to Corantioquia by the previous owners,
Frontino Gold Mines in 2004 (2004 PMA). When Zandor acquired the assets of FGM, it
commissioned an updated PMA that was submitted in June 2012 (2012 PMA). An additional
study on the impacts from and management of the new Pampa Verde processing plant was
submitted in May 2013 to be considered by the regulator in the process for the update of the
PMA. According to the Company, the decision on the 2012 PMA is expected in June 2014.
Based on a review of the permit register for Segovia and information from Zandor, the necessary
secondary permits for water abstraction, forest use, air emissions, discharges and river course
construction for the operating mines (El Silencio, Sandra K, and Providencia) appear to be in
place or are addressed by the 2012 PMA that is pending approval. Environmental permits for the
Pampa Verde processing plant were obtained in October 2013 and construction earthworks have
commenced.
The permitting of the potential El Chocho tailings storage facility (TSF), that could receive dry
tailings from the Maria Dama and Pampa Verde beneficiation plant, is pending approval of
additional technical information being developed by the Company. Construction timelines for this
facility may be affected by the presence of illegal artisanal miners in the development area. The
Company is reportedly dealing with the artisanal miners through legal means.
A tailings filtration process, to be installed at the Maria Dama plant and included in the design of
the new Pampa Verde plant, is being considered as an alternative to the El Chocho TSF to
enable the company to dry-stack tailings on surface in a designated area called Chocho 2. This
area has a saprolitic base layer which will prevent seepage and drainage channels and bunds
will be constructed to contain the stacked tailings on top of geofabric.
SRK understands the following aspects based on information supplied by the Company with
regards to the dry-stacking of tailings:
x The current land use of the location currently being assessed is artisanal mining.
x Zandor holds the surface rights for the location and therefore no land acquisition process
is required, and;
x According to the Company there are no permitting requirements to change the tailings
disposal method to dry stack.
Corantioquia has issued invoices for environmental charges to the former owner of the Segovia
operation, Frontino Gold Mines, associated with the direct discharge of tailings from the Maria
Dama beneficiation plant to a nearby stream. SRK understands no environmental liabilities have
been transferred to the Company from the actions that occurred prior to Zandor’s ownership in
August 2010. The Company is potentially responsible for the payment of charges for the
discharge of tailings after August 2010. Although the amount of such charges cannot currently be
quantified as discussions are underway with the authorities as to what amount may be payable
by the Company, an estimated provision of USD 1.5m has been included in the capital
expenditures plan related to the charges. The actual amount of these charges may differ
materially from this estimated provision.

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19.3 Approach to Environmental and Social Management
The Segovia Project has a Health, Safety and Environmental Quality (HSEQ) system designed to
comply with ISO 9001, ISO 14000 and OHSAS 18000. The system includes a HSEQ policy,
integration of the plan-do-check-act cycle and comprehensive risk matrices defining the health,
safety and environmental risks with actions required to mitigate these risks. As of November
2013, the system was 60% implemented.
At present, environmental and social issues are managed in accordance with the 2004 PMA.
Bi-annual reports are submitted to Corantioquia to demonstrate compliance with the 2004 PMA.
In addition to the requirements of the 2004 PMA, The Company has also reportedly implemented
plans for solid and hazardous waste management, domestic waste water management, noise
monitoring and establishment of a plant nursery for revegetation activities. SRK has not
reviewed these plans. The Company also intends to develop social initiatives to improve health
and well-being of local communities surrounding the operation, promote leadership and
entrepreneurship for women and develop partnerships with small-scale miners.
No specific baseline studies were completed prior to ownership of Segovia by the Company in
August 2010. The development of the 2012 PMA update included the collection of site-specific
environmental and social data to characterise current conditions including climate, surface water
flow and quality (two sampling periods), air quality, noise and land use. Secondary data was
interpreted for soil, biodiversity and social components. A revised impact assessment was
prepared and management measures are organised into a suite of 24 management plans,
comprising 10 programme groups. If approved, the measures in these plans will become legally
binding. The estimated cost of implementation of the measures in the 2012 PMA is
USD 3 million, with an annual operating cost of USD 0.5 million. During the site visit in 2012, the
environmental team at the site consisted of an environment manager, three environmental
technicians and 15 assistants. While the team in place are capable of operating the revised
measures, additional technical expertise may be required in certain areas to assist with initial
implementation of the 2012 PMA commitments.
Key environmental and social issues
Based on a review of the available information, the following key environmental and social issues
were identified.
Impacts on water quality: The most significant issue identified by the assessment included in
the 2012 PMA was contamination of surface water from discharge of dewatering effluent without
treatment from the operating mines. Parameters in excess of the Colombian ambient quality
standards are metals such as cadmium, lead, zinc and iron and microbiological parameters
including coliforms.
The 2012 PMA includes commitments to implement treatment of the effluent from the operating
mines three years from the date of PMA approval. Water management measures for recycling
and reuse of water are proposed for the Maria Dama plant to be implemented two years from
approval of the PMA. Physical and chemical characterization studies for waste rock within a year
of 2012 PMA approval and evaluation and design of appropriate disposal sites will also improve
management of ambient water quality. Until the 2012 PMA is approved and treatment measures
are implemented, there is a risk the Segovia operation will continue to contaminate surrounding
surface water courses and may experience action from the Corantioquia.

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Changes to groundwater regime: The 2012 PMA highlights a lack of information regarding the
groundwater regime in the operating mines and suggests that changes to the groundwater levels
through dewatering activities of the mines may lead to geotechnical instabilities and increase the
potential for subsidence from the underground workings. This is a significant risk given the
location of residential buildings of Segovia above the workings. The 2012 PMA includes
measures to complete a conceptual hydrogeological model and a numerical model of the mining
area to predict and manage changes to hydrogeological setting. These activities would be
completed in the first year following approval of the 2012 PMA.
Health and safety of contract miners: Zandor employs groups of contract miners to extract
high grade RoM from supporting pillars in the operating mines. Although each mining group is
required to meet contractual health, safety and environmental standards set by the Company,
historically there has not been sufficient auditing of compliance with these standards. Significant
health and safety risks may be associated with uncontrolled mining of pillar supports, which may
potentially lead to ground collapse and loss of life.
The Company employs a team, currently comprised of 24 people, that coordinates and directs all
aspects of the contract miners operations. Since SRK’s site visit, the Company has reportedly
improved the auditing of compliance of the contract miners with the Company’s health, safety
and environmental policies, though SRK has not reviewed this revised auditing process. The
Company is also investigating the use of alternate ground support systems to provide simpler,
safer and less labour intensive methods to reduce risks associated with the secondary mining of
pillars.
19.4 Stakeholder engagement
Zandor has conducted a stakeholder analysis for the Segovia operations, identifying the
individual stakeholder groups and their potential influence on the project. The analysis has not
yet been converted into a stakeholder engagement plan but the Company has set stakeholder
engagement objectives and goals to develop communications plans with government,
community, media and small miners. A set of workshops were held by the Company in Segovia
and Remedios in February 2012 to discuss engagement objectives with stakeholders. SRK is not
aware of the timeline for the development of stakeholder engagement plans.
The company has a complaints and petitions handling procedure to record grievances both at the
company offices and two community offices, located in Segovia and Remedios. The grievance
recording and response procedures follow international good practice.
19.5 Closure planning and costs
Basic closure actions are contained within the 2004 PMA but these will be superseded by the
closure plan in the 2012 PMA, if it is approved. The 2012 PMA includes actions and costs for the
Higueron dry tailings stacking area that will be progressively closed in the near future but site-
wide closure actions and costs have not yet been defined as these will be developed closer to
the end of operations. SRK is not aware of on-going financial provisioning for closure.

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While SRK recognise a conceptual closure plan is not legally required at this stage of the
operation, the development such plan would support the calculation of a detailed closure cost
and would help identify the potential closure risks that Zandor may need to manage. Based on
SRK’s experience of similar projects in similar environments, SRK considers the cost to close the
Segovia operations could be in the order of USD 15 million, which has been included in the
capital expenditures plan. This estimate has been produced based on very limited information,
particularly regarding hydrogeological and geochemical conditions, and further studies would be
required to accurately understand the financial liabilities of closure. A requirement for long-term
post-closure water treatment would significantly increase this estimate.
19.6 Conclusions
The following conclusions can be drawn from the review of the Segovia Project:
x Permitting: Developments within RPP 140 are permitted through the posting of an
Environmental Management Plan (PMA) and secondary permits for use of water
abstraction, forest use, air emissions, discharges and river course construction. The
project is permitted under the 2004 PMA. The Company submitted an updated PMA to
reflect the current operation in June 2012 with a further update to include the Pampa
Verde processing plant in May 2013. The decision by the regulatory authority on this
document is expected by the Company in June 2014.
x Environmental and social management: Environmental and social issues are currently
managed in accordance with the 2004 PMA. The 2012 PMA represents an improvement in
management practices and, if approved, the management measures in the 2012 PMA will
become legally binding. Substantial financial resources (USD 3M capex and USD 0.5M
opex) and technical specialist support will be required to implement the measures in the
2012 PMA.
x Water management: Untreated mine effluents are contributing to contamination of local

surface water courses. Until the 2012 PMA is approved and the committed treatment
measures are implemented, there is a risk the Segovia operation will continue to
contaminate surrounding surface watercourses and may experience action from the
regulatory authority. There is a risk that changes to the groundwater regime through
dewatering activities of the mines may lead to geotechnical instabilities in underground
workings though hydrogeological modelling work is proposed to predict and enable the
development of management measures to address this risk.
x Health and safety of contract miners: The Company employs groups of contract miners
to extract high grade RoM from the pillars in the operating mines. Although each mining
group is required to meet contractual health, safety and environmental standards set by
GCM, there has historically been poor compliance with these standards. GCM has
improved the auditing of compliance of the contract miners but health and safety risks may
be associated with uncontrolled mining of pillar supports, which may potentially lead to
ground collapse and loss of life.
x Stakeholder engagement: Zandor has conducted a stakeholder identification and

analysis and has set stakeholder engagement objectives and goals to develop
communications plans with government, community, media and small miners but the
company does not currently have a stakeholder engagement plan.

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x Closure cost: The lack of a detailed closure cost and financial provisioning for the
Segovia Project at present poses a risk that at the end of the mine life, insufficient funds
will be available to close the site in a safe, environmentally and socially appropriate
manner. The largest uncertainty regarding closure cost is associated with the potential
need for long term treatment of water from the disused mine workings.

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20 CAPITAL AND OPERATING COSTS

20.1 Capital Costs
SRK has used a recent version of the financial model that was produced by the Company in
support of the budget for 2014 and beyond as a basis for the capital costs.
The Company splits the capital costs into three areas:
x Existing Projects – including the Maria Dama processing facility, and the Providencia,
Sandra K, El Silencio and Carla mines;
x New Projects – comprising the Pampa Verde Project, including a new processing facility
and mine expansion; and
x Mine Development – including the capitalised costs relating to the on-going capital
development following completion of the Pampa Verde Project.
SRK has reviewed the proposed capital expenditures for the LoMP as supplied by the Company
and accepts the estimates. A summary of future expenditures is provided in Table 20-1.
Table 20-1: Segovia Project Capital Costs
Existing Projects
Sustaining Capital USD M 11.5
Subtotal USD M 11.5
New Projects (Notes 1 and 2)
New processing plant USD M 26.5
Capital development (including shafts, ramps) USD M 6.0
Tailings storage (dry stacked) USD M 4.0
Infrastructure USD M 6.2
Mechanised equipment (lease) USD M 1.9
Project personnel USD M 1.9
Contingency USD M 2.0
Subtotal USD M 48.5
Mine Development
Capital Development (on-going) USD M 20.0
Subtotal USD M 20.0
Total USD M 80.0
Note 1: Comprises estimated remaining capital costs to complete the Pampa Verde Project as of December 31, 2013.
Over 2012 and 2013, the company spent USD 35.5m on capital expenditures related to the Pampa Verde Project.
Note 2: As of December 31, 2013, the company has USD 22.7m of cash set aside from the proceeds of the October 2012
Gold Notes financing available to help fund the remaining expenditures for the Pampa Verde Project.
In addition to the above capital, there are certain additional capital requirements for the Segovia
project related to geology and the environment. These items are outlined in Table 20-2.

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Table 20-2: Additional Project Capital
Geology
Exploration USD M 12.0
Subtotal USD M 12.0
Environment
Provision for Tailings Disposal Charges USD M 1.5
Mine Closure USD M 15.0
Subtotal USD M 16.5
Total Capital
Segovia Project Capital (Table 19-1) USD M 80.0
Additional Project Capital above USD M 28.5
Total LoMP Capital Costs USD M 108.5
The long term exploration strategy was finalised by the Director of Exploration and accepted by
SRK. Exploration is assumed to cease two years prior to the cessation of production.
The provision for tailings disposal charges relates to environmental charges resulting from legacy
tailings disposal methods implemented prior to Zandor assuming control of operations. The final
cost of which are yet to be finalised, however, SRK has made a provision in the LoMP cash flows
approximating the current status. Actual amounts paid following future negotiations with
Corantioquia may differ materially from this estimate.
In addition, SRK has estimated an approximate cost of closure, though this is not a detailed
estimate. No payments have been assumed during the course of mining and it is assumed that
the closure costs will be spent as a lump sum over two years in the final year of production and
the year after completion of production.
No allowance has been made for any redundancies due to the implementation of mechanised
mining methods as:
x The mechanisation will be occurring in the Providencia and Sandra K mines, and
mechanised production will be in addition to the airleg mining;
x There’s no associated decrease in the other mines other than the organic drops
associated with the depletion of the Resources and consequent ramp down of mining near
the end of the mine life;
x The introduction of mechanisation coincides with the depletion of primary mining resulting
in a significant increase in secondary mining, which is much more labour intensive than the
primary mining with a completely transferable skill set.

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20.2 Operating Costs

Introduction
As a result of the relatively recent acquisition of the Segovia Assets, there is limited historical
operating cost data available for comparison as the Company has had insufficient time to fully
implement their proposed mining methods and design principles into the existing operations.
Several changes took place in 2013, brought on by the company’s mandate to lower its
production costs, a lower gold price and lower production levels in the fourth quarter. Emphasis
was placed on increasing the amount of developed areas and a new contractor was appointed in
December 2013 for secondary mining at El Silencio. In addition, the number of company
personnel was reduced in several phases during 2013. As a consequence, the historic data may
ultimately have little bearing on the future operating cost profile.
The capital investments proposed by the Company are anticipated to have a significant impact
on the operating costs as are changes to the design philosophies for mining.
The operating costs applied to the TEM are based on a review of the latest Zandor financial
model, incorporating recent changes to the operating cost structure, which was used as the base
for the 2014 budget.
Mining Costs
Mining at the Segovia Assets comprises two separate mining methods with individual constraints
and characteristics, with a third to be introduced during the course of the LoMP. They can be
simply classified as primary, secondary and mechanised mining.
Historically, the Company conducted primary mining through a fixed work force structure.
Recently, Zandor reduced its workforce to reduce the fixed nature of overhead costs on its
operations. The Company has opted for a contractor structure for the primary mining, paying the
local mine contractor a fixed rate per tonne. SRK has used the newly negotiated contractor rates
as presented in the following Table 20-3. These costs include the Company’s internal overhead
costs of around USD 35.60/t covering supervision/quality control, explosives and consumables,
electrical energy, transportation, and repairs & maintenance.
Table 20-3: Summary of Primary Mining Cost per Mine

Primary mining costs (USD/ tonne)
Providencia USD/t 130.34

Sandra K USD/t 88.24
El Silencio USD/t 111.4
Carla (Segovia Gold) USD/t 72.45
In 2013, the company’s cost for primary mining averaged approximately USD 150/t. The costs
presented above are lower than incurred in the previous years as the result of the cost reduction
program undertaken in 2013 and recent implementation of the new operating cost structure. The
costs vary per mine due to the variation in working depth and the time that personnel will take to
get to the working face. Carla is a new mine and producing at a lower grade, hence the lower
operating costs.
As a result of the new operating structure on the mine, SRK is of the opinion that the historical
production costs do not provide a basis for the future mining costs.

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The secondary mining cooperatives are paid for their services based on ounces recovered and
spot gold prices as presented in Table 20-4. Secondary mining costs are therefore dependent on
the grades mined. SRK has applied this multiplier as the direct operating cost of secondary
mining. In addition, there is an allowance for approximately USD7/t for costs expended by
Zandor associated with the management of the contracts and other indirect activities, which has
been applied to the TEM.
Table 20-4: Summary of Contract Mining Costs Per Mine

Mining services (based on %/recovered oz * gold price) Multiplier USD/ oz USD/ tonne
Providencia - Masora 0.48 590.6 239.8

Sandra K - Tierro Adentro 0.576 705.2 201.5
El Silencio - Navar 0.49 602.5 236.6
Other areas - Various 0.528 647.9 116
Finally, mechanised mining is to be introduced by contractors using a long-hole mining method in

selected sections of Providencia and Sandra K from 2015. According to Zandor estimates,
mining is anticipated to be in the order of USD80 /t for the uphole retreat method. No technical
work has been provided to justify this estimate. SRK considers this cost to be reasonable given
the required production rates, and it has been used as a basis for the TEM for part of the
tonnages produced.
Processing Costs
Forecast operating costs for 2014 have been provided by the Company for the Maria Dama
plant. These indicate an overall processing cost for 2014 of USD 21.22/t based on an annual
treatment rate of 397 kt. In 2013, processing costs averaged approximately USD 25/t based on
treatment of 327 kt. The basis of the processing costs are partly fixed (personnel, repairs and
maintenance, lab services and other) and partly variable (electricity, and chemicals and
consumables). Due to the fixed costs component, the processing costs at Maria Dama are
expected to go up when the throughput tonnages drop after 2014 with the completion of the new
Pampa Verde processing plant.
Beyond 2014, forecast operating costs in the LoMP cash flows are estimated at USD20/t treated,
which is based on the operation of the new Pampa Verde plant starting in early 2015.
SRK have generated revised forecast operating costs over the LoMP based on the forecast costs
for 2014 presented by Zandor, reported consumptions and on typical unit costs for reagents and
consumables. Labour costs are based on data from the 2014 budget, which are understood to be
based on incurred costs reported in 2013. Forecast operating costs for the different throughput
scenarios at the different processing operations and flowsheets are presented in Table 19-5 and
are based on an exchange rate of USD 1.00 = Peso 1900.
Forecast costs for the Pampa Verde plant are based on the costs forecast for Maria Dama and
on typical generic costs for similar costs adjusted for the forecast unit costs of reagents and
consumables applicable to Segovia from the Maria Dama forecast costs.

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Table 20-5: Summary of Processing Costs
Throughput
Maria Dama
500 t/d USD/tproc 25
1,100 t/d USD/tproc 21
Pampa Verde
2,500 t/d USD/tproc 20
An additional USD1 /t is allowed for tailings disposal to allow for the additional transport costs of
dry-stacking the tailings on surface, as it the plan of Zandor at present.
Site G&A Costs
Mine site general and administrative costs (“G&A”) are assumed to be inclusive of all production
costs relating to production but not directly with mining or processing. The Company has
provided data split between security and administration; however, no further detail has been
provided for. SRK assumes that the administrative costs include allowances for environmental
costs in addition to business expenses. G&A costs have been treated as a relatively fixed cost at
approximately USD 7.1 M each year leading to a cost of approximately USD 13/t at full
production.
The G&A costs were reduced by around half compared with the previous years as a results of
the cost reductions implemented in 2013 by the Company to reduce people and costs as part of
the focus on cost savings initiatives.

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21 ECONOMIC ANALYSIS
21.1 Introduction
SRK has constructed a scoping-level technical-economic model (“TEM”) for the purposes of
evaluating the economic viability of mining the Mineral Resources. The model is produced in real
terms incorporating corporate taxes and depreciation. Refining costs have not been included.
The assumptions made with regards to metallurgical recovery, operating costs, capital
expenditure, and others have been derived from work undertaken for each separate discipline
and are discussed in the sections above.
This preliminary economic assessment is preliminary in nature, 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 preliminary economic assessment will be realized. Mineral resources that are
not mineral reserves do not have demonstrated economic viability.
SRK reviewed the following aspects during the Economic Analysis:
x The primary mining plan created by the Company, which is based on a detailed block
layout. The in-situ resources have been determined for each block and diluted using a
minimum mining height of 1.2 m and a minimum dilution skin of 0.15 m on either side of
the vein;
x Pillar mining plan;
x Operational costs, and payment structure of the small miners; and;
x Capital expenditures
SRK notes that the mining plan is based on Measured, Indicated and Inferred resources and a
limited amount of mineralized material which has not been included in the resources.
No pre-feasibility or feasibility study in respect of the Project has been previously prepared.
The Project has been in continuous production for over a century and the Company’s production
decision, including the expansion of the Project through Pampa Verde, has not been based on
mineral reserves demonstrating economic feasibility and technical viability. Historically, projects
in which the production decision is not based on mineral reserves have a much higher risk of
economic and technical failure. If such failure occurs, it could have a materially adverse impact
on the Company’s future profitability.
21.2 Key Assumptions
SRK applied the following key assumptions to the LoMP cash flows in developing the TEM:
x Processing recovery 88 to 90% (Maria Dama), 90% (Pampa Verde);
x Base case discount rate of 10%;
x royalty rate of 4.4% on gross revenue of gold and silver;
x corporate tax rate in Colombia of 34% to 2015 and thereafter reducing to 33%;
x property tax of 0.6% (included in the G&A);

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x fixed exchange rate of 1900 COP/USD; and,
x straight line depreciation of 10%.
The discount rate and depreciation have been assumed by SRK, whereas the royalty rate,
corporate tax rate and the property tax rate has been provided by the Company.
SRK has taken the forecast for the gold and silver prices from its internal database of consensus
market forecasts. The applied prices for the TEM are shown in Table 21-1
Table 21-1: Gold Price Profile (Assumed)
Year 2014 2015 2016 2017 2018 2019 LTP
Gold Price (USD/oz) 1,250 1,240 1,220 1,180 1,150 1,160 1,160
Silver Price (USD/oz) 20.25 20.75 20.50 20.00 19.50 19.75 20.25
The production schedule and resulting cash flow are shown in Table 21-2.

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Table 21-2: Production schedule and cash flow*

Production Units Total 2014 2015 2016 2017 2018 2019 2020 2021
Tonnes Mined (kt) 3,084.2 397.1 549.7 554.2 576.2 469.9 342.0 195.0 -
Grade (g/t Au) 9.6 9.0 9.6 9.6 9.7 9.1 9.1 11.9 -
Metal Mined (koz) 947.7 115.5 168.9 170.3 179.7 138.2 100.2 74.9 -
Metal Recovered (koz) 850.6 101.6 152.0 153.3 161.7 124.3 90.2 67.4 -
Revenue
Revenue (USDm) 1,036.4 129.1 191.7 190.2 194.1 145.4 106.4 79.5 -
Operational costs
Production costs (USDm) (443.4) (62.5) (76.9) (75.9) (76.9) (59.4) (52.7) (39.1) -
Processing costs (USDm) (64.1) (8.4) (12.0) (11.6) (12.0) (9.4) (6.8) (3.9) -
Tailing facilities costs (USDm) (3.1) (0.4) (0.5) (0.6) (0.6) (0.5) (0.3) (0.2) -
G&A (USDm) (46.0) (7.1) (7.1) (7.1) (7.1) (7.1) (4.2) (3.6) (2.7)
Royalty (USDm) (45.6) (5.7) (8.4) (8.4) (8.5) (6.4) (4.7) (3.5) -
Total operational costs (USDm) (602.2) (84.1) (104.9) (103.5) (105.1) (82.8) (68.8) (50.3) (2.7)
Capital costs
Existing Mine/Mill Costs (USDm) (11.5) (1.0) (2.0) (2.0) (2.0) (2.0) (2.0) (0.5) -
New Mine/Mill Costs (USDm) (42.5) (31.4) (10.0) (0.4) (0.4) (0.3) - - -
Mine Development (USDm) (26.0) (6.0) (6.0) (5.0) (5.0) (3.0) (1.0) - -
Geology (USDm) (12.0) (1.0) (2.0) (2.0) (2.0) (2.0) (2.0) (1.0) -
Environment (USDm) (16.5) (0.5) (0.5) (0.5) - - - (5.0) (10.0)
Total (USDm) (108.5) (39.9) (20.5) (9.9) (9.4) (7.3) (5.0) (6.5) (10.0)
Corporate Income tax
Corporate Income tax (USDm) (72.1) (3.0) (20.3) (19.0) (19.4) (10.4) (1.9) 1.0 0.9
Free Cash Flow
Free Cash Flow (USDm) 253.6 2.1 46.0 57.8 60.2 44.9 30.7 23.7 (11.8)
(*) SRK notes that these tonnages are not considered Mineral Reserves prepared in accordance with an international reporting code.
Production schedule is inclusive of 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 preliminary
economic assessment will be realized.
The substantial increase in production from the present 100 koz per annum to around 150 koz
per annum from 2015 onwards is based on the following changes:
x More working areas have become available as a result of focus on development works in
the primary mining areas at Providencia, El Silencio, Sandra K and Carla.
x Ramp up in 2015 of the small miners’ production facilitated by an increase of the hoisting
capacity at El Silencio from 450 tpd to 900 tpd and an investment in 2014 to upgrade the
Providencia shaft as part of the Pampa Verde plan.
x The appointment of a new contractor for secondary mining at the El Silencio mine, and the
dewatering of the lower levels, presently inaccessible due to flooding
x Construction of the new Pampa Verde processing plant with a higher throughput of up to
2,500 tonnes per day.
For the primary (company) mining, the Company has moved to a local mine contractor model
where the contractor will hire the labour and supply production equipment and the Company will
pay a fixed rate per tonne mined. Similarly, for the small miners undertaking the pillar
(secondary) mining, the cooperatives hire their own people and the Company just pay for their
services based on ounces recovered and spot gold prices. In both cases, the Company does not
need to build head count into the mining plan and budget to support the production growth.
According to the Company, sufficient labour is available in the region to fulfil any hiring needs
that the contractor or small miner cooperatives may have for their targeted production levels.
21.3 Results
All technical economic parameters and the net present value (“NPV”) result are presented in
Table 21-3. The Internal Rate of Return (“IRR”) and (undiscounted) payback factors cannot be
determined as the first year, 2014, shows a positive cashflow.

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SRK has not estimated silver within the current Mineral Resource Estimate due to the quality and
distribution of the silver sampling within the underground sampling database, plus limited drilling
information. SRK notes based on the production figures for the past 5 years the Company has
produced silver at an approximate 1:1 ratio with gold in terms of the recovered metal. Based on
the information available SRK has completed a review of the database available and can confirm
while there is not a direct 1:1 relationship between gold and silver on a sample by sample basis,
globally the silver grades have reported similar mean grades. Given the historical reconciliation
provided by the Company SRK expect this production ratio to continue during the life of the mine
plan. Based on this assumption SRK has included the silver as a credit in the financial model.
Table 21-3: Summary of TEM Results
Parameter Units LoMP Amount

Recovered gold (koz) 851
Recovered silver (koz) 851
Average gold price (USD/oz) 1,198
Average silver price (USD/oz) 20.1
Total revenue (USDm) 1,036.4
Total cash costs (USDm) 602.2
Total cash costs (USD/oz) 708
Project capital (USDm) 97.0
Sustaining capital (USDm) 11.5
Pre tax
Free cash flow (USDm) 325.7
NPV @ 10% (USDm) 252.9
IRR % N/A
Post tax
Free cash flow (USDm) 253.6
NPV @ 10% (USDm) 193.9
IRR % N/A
21.4 Sensitivity
SRK has performed an NPV sensitivity analysis on the TEM with regards to commodity prices,
operating costs and capital expenditures. The results of this analysis, which is presented for
post-tax only, are graphically presented in Figure 21-1. The results demonstrate that the project
is most sensitive to metal price. A drop of over 35% would be required in order to make the NPV
negative. The project seems generally robust for changes in the operating and capital costs.

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400
350
300
250
NPV (USDm)
200
150
100
50
-
-30% -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30%
Sensitivity Range
Commodity Prices Operating Expenditures Capital Expenditures
Figure 21-1: NPV Sensitivity Graph (Post-Tax at 10% Discount Rate)
21.5 Conclusions from the Economic Analysis
Based on the scoping level work carried out for this study, SRK concludes the following:
x The Project generates cash flows sufficient to cover operating costs and capital
expenditures over the Life of Mine;
x Though the project is operational, the significant investment required to expand production
in the coming two years will result in essentially a breakeven cash flow in 2014. However,
cash flows in the following years are expected to be sufficient to pay back the investments;
x The Project is more sensitive to commodity price variation than changes in the operating
and capital costs; and
x The resulting NPV is positive and supports progression the further development of the
project.

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21.6 Recommendations from the Economic Analysis
Based on the scoping level of work carried out for this study, SRK recommends the following:
x Technical studies to be undertaken in areas where an indicative estimate has been used in
the capital expenditures, such as for the proposed dry-stacking of tailings, to reduce the
possible variation and with the aim to reduce the costs.
x Reconciliation procedures to be implemented for the total material flow with the aim to
reduce losses and further lower the costs per ounce.
x A financial model is prepared for future in-house budgeting and planning. This model
should integrate production from all of the mines and reflect planned and actual costs and
processing recoveries.

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22 ADJACENT PROPERTIES
There are no properties adjacent to the Project with NI 43-101 compliant Mineral Resources.

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23 OTHER RELEVANT DATA AND INFORMATION

23.1 Geotechnical Considerations
Proposed Primary Mine Layout
The following geometry has been used to determine the extraction percentage for proposed
primary extraction within the shallow dipping veins areas (current mining operations).
x 6m room spans
x 1.5*1.5m pillars
x Sill pillar thickness equal to drive width on mining levels.
SRK Opinion - The above mine layout has been developed on historic stope performance and
professional judgement. Pillar sizes observed within the existing primary mining areas were
considerably larger than the proposed pillar design with most pillars being a minimum of 3*3m.
Proposed extraction will be considerably higher than the current extraction.
The proposed pillar dimensions are considerably reduced from the current pillar dimensions and
as such the proposed layout should be geotechnically verified using empirical rock mass
classification techniques although at the current stage little data is available. It may also be
necessary to include the effects of blast damage within any pillar strength/performance
assessment.
When the vein structure is excavated to expose fresh rock within the hanging-wall and footwall,
the rock mass is strong and of good quality although it is clear that the reef from which
production pillars will be formed is of significantly lower rock mass quality with greater fracture
intensity and weaker intact rock strength. When it has not been identified and removed from the
stope roof, instability has occurred on a reef parallel shear. Where possible, the shear should be
identified in core drilling and mapped where intersected underground to allow modelling and an
assessment of the likely intersection of this structure within future mining areas.
The critical area within the stepped room and pillar development will the development of suitable
spans and appropriate pillars to support the roof of the room.
Current and Proposed Support
At the current time, very little ground support is used either within mine development or reef
extraction. Occasional roof bolts were noted and within the primary mining area the use of
scaling bars was evident. Steel and wooden sets were evident within long-term development
drives. GCM plan to implement a systematic roof bolting program within all development and
mining areas to ensure roof stability.
Pillar Removal
Contractors remove pillars in areas away from the primary mining areas. GCM do not have any
control over the removal of old pillars, nor do they have any control over the replacement
support. SRK visited a location where a large remnant pillar was being extracted. The large pillar
was originally left for ‘geotechnical reasons’ although it is now deemed suitable to mine the pillar
although no geotechnical validation has been given. Wooden support is used as a pillar
replacement in areas of pillar removal although SRK understands that GCM are looking at more
suitable long-term alternatives for replacement pillars.

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SRK understands that GCM will be liable for any injury or fatality as a result of ground control
falls due to pillar removal. Pillar removal should be undertaken in a controlled and safe manner
with a defined sequence of extraction that has been geotechnical approved. Removal of pillars
and inadequate replacement of support could also potentially lead to surface subsidence issues.
Data Collection
Geotechnical logging of core is being undertaken. However, SRK recommends that a logging
and underground mapping program is develop that can be focused in generating Q and RMR
values for input into stable span and pillar design charts. At the current time the logging is
focussed on generating Q rock mass classification values rather than Q and RMR. It is also
recommended that a point load testing program is set up that can be undertaken at the core shed
and will allow a database of rock strength to be developed for input into mine design. The reef is
considerably weaker than the surrounding granodiorite and as such it is important to characterise
the geotechnical conditions and rock mass strength of this unit, especially when developing pillar
designs.
Summary
x During the 2012 SRK review, there was little geomechanical information from which to
substantiate the proposed mine layouts. The Company has logged boreholes since 2011
to capture geotechnical information. SRK has not reviewed this information as part of the
current scope of work, and can therefore not comment on the quality of the geotechnical
information used as the basis for the current plan;
x The proposed mine layouts appear to be aggressive, with significant extraction increases
from the current mining layout. Geotechnical verification is required although at the present
time, any verification will be high level due to the lack of information.
x GCM propose to develop a systematic approach to roof support with the use of rock bolts.
x Pillar removal and replacement support is not in control of GCG at the present time. GCG
needs to develop a safe, controlled and systematic approach to pillar removal. GCG is
responsible for the consequences of ground control issues as a result of uncontrolled pillar
removal.
x When excavated back to the granodiorite, the hanging wall and footwall rock mass
conditions are reasonably good, which in addition to the current low stress environment
due to the shallow level of workings could potentially lead to greater extraction if
geotechnically verified beforehand.
23.2 Hydrogeological, Hyrdology & Water Management
SRK has not reviewed the hydrogeological, hydrology and water management as part of the
current scope of work. SRK has previously been requested by the Company to review these
aspects as part of the internal review of Mineral Resources and life of mine planning in 2012.
SRK visited the Segovia site between the 22 and 24 February 2012. The team members visited
the underground mines (Providencia, El Silencio and Sandra K), the Maria Dama processing
plant, the existing tailings facility, the future development site, including the proposed new tailings
facility and processing plant.

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Discussions were held with GCM personnel and the various specialists involved in the project,
including the managers of the facilities, local contractors and an environmental specialist from
the Pontificia Universidad Javeriana
Based on the review work carried out as part of this assignment, SRK concludes the following:
Hydrogeological
x Insufficient work has been undertaken on the hydrogeological setting to establish the true
level of risk associated with groundwater;
x Important issues may arise within the context of environmental impact which need to be
x Full dewatering of the flooded El Silencio mine would facilitate the development of the
other mines as the groundwater will drop within a radius of influence around the mine, and
this will reduce the requirement for dewatering of the adjacent mine workings;
x Use of mercury by artisanal miners across the area seems to be common practice,
however, due to the lack of surface and groundwater monitoring system, the degree to
which this practice has impacted the water resources of the area is not known;
discharged to the surface water environment; and
x There a risk that the current nature of the operations of the mining contractors may affect
GCM plans for mine dewatering and water management in the mines. For example, there
is the potential for the GCM mines to be adversely impacted from the flooded El Silencio
mine, which is managed by contractors. SRK understands that the El Silencio mine is
currently dewatered to the 23rd level (during the 2012 site visit), deeper than any of the
Company mines, which together with the Company’s intension to control the rate of
dewatering at El Silencio should preclude such risks to its operations.
Hydrology
discharged to the surface water environment;
x Important issues may arise within the context of environmental impact which needs to be
x There a risk that the current nature of the operations of the mining contractors may affect
GCM plans for mine dewatering and water management in the mines. For example,
although the Company intends to control the rate of dewatering at El Silencio, there is the
potential for the GCM mines to be adversely impacted from the flooded El Silencio mine,
which is managed by contractors;
x Insufficient work has been undertaken on the hydrological setting to establish the level of
risk associated with pluvial (rainfall) derived water;

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x Surface water runoff (pluvial drainage) is likely to represent significant water management
challenge to the project considering the difficulties in distinguishing between the impacts
from the artisanal mining activities and those of GCM. Drainage system design should be
based on sound hydrological principles and a defined storm event return period or
magnitude of the design storm;
x According to the available information regarding the water supply requirements and
surface water records in the area, water supply for processing and potable water should
not present a significant challenge to the project. However, management of wastewater
within and around the waste management facilities and the plant area is considered one of
the most challenging aspects to the project;
x A zero discharge policy should be applied during the project construction and operation, in
such that water recycling is maximised and water treatment and release is minimised. This
will help reduce the operating cost, prevent potential for environmental damage and
liabilities, and enhance the company reputation with local population and investors;
x Little or no site specific or detailed analysis of the water cycle has been undertaken to
date;
x Information from the current dewatering of the exiting mine indicate that groundwater
inflow into the mines is manageable. SRK notes that while groundwater inflow into the
mines may not be a critical issue, a good understanding of the hydrogeological setting will
be important to establish the baseline environmental setting and possible impacts with
respect to the overall project;
x A thorough understanding of the local rainfall and pluvial drainage issues must be
established and an appropriate management system designed, based on a robust design
storm return period;
x An assessment of the water resources availability is required in order to establish when

abstraction can take place and the regulatory and environmental consequences of
abstraction;
x A site wide water balance is required to optimise the water supply and storage
requirements.

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24 INTERPRETATION AND CONCLUSIONS

Infill drilling during the 2012 to 2013 programme focused on three main areas, Providencia,
Sandra K and Las Verticales (Las Aves, El Silencio South and Poma Rosa 2). Drilling at
Providencia and Sandra K has returned good results which are in line with those expected from
the previous geological model, with improved definition of high-grade trends. Drilling within the
Las Verticales area returned less satisfactory results with a significant reinterpretation of the El
Silencio South vein being required based on infill drilling not intersecting the vein as expected. As
a result of this reinterpretation the highest grade sample within the area cannot be correlated to
any additional vein. It is SRK’s conclusion that the Las Verticales area still presents a reasonable
exploration target but that the any potential higher-grade domains are more likely to be narrow
and discontinuous which makes exploration more difficult. SRK would therefore recommend
focus be placed on the current operating mines and locating extensions or improved definition of
high-grade shoots within these as a higher priority which could bring more material into the mine
plan faster and with less underground development.
SRK considers the exploration data accumulated by the Company is generally reliable, and
suitable for the purpose of this Mineral Resource estimate. SRK undertook a laboratory audit of
the new SGS sample preparation and fire assay facilities in Medellin and found the laboratory to
be clean, organised, have the correct equipment, and procedures in place to ensure quality is
maintained.
SRK has reviewed and audited the updated exploration data available for the Project and noted
the quality of the gold assays determined at the Zandor Capital Mine (GEM) Laboratory needs
further attention to address:
x Poor accuracy shown in analysis of certified reference material, with assays routinely
reporting outside of defined limits;
x High frequency of high gold values shown in analysis of blank material, with assays
reporting outside typically accepted limits.
In the 2012 internal review of the Indicated and Inferred Mineral Resources, the Company
confirmed that it is planning for future accounting samples to be analysed in a new laboratory to
be operated by SGS. An offer to operate the laboratory had been received from SGS who have
also advised requirements for the laboratory facilities, which are to be procured and constructed
by the Company and located adjacent to the Maria Dama plant. Construction of the foundations
for the new laboratory had been scheduled to start at the beginning of March 2013 with the
building to be complete by the end of May 2013. SRK noted that the initial building work appears
to have been completed but no progress has been made to move the current mine laboratory.
SRK recommend the movement of the current samples to a larger new facility a high priority, to
increase confidence in the sampling. SRK has been informed by the Company that samples
have stopped being submitted to the mine laboratory from 1 September 2013, and that all assays
are now completed by SGS.

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In the previous NI43-101 technical report a number recommendations for improvement were
provided in terms of further verifying the historic underground database, and as such the
Company has completed a verification channel sampling program during 2013 at the Providencia
and Sandra K mines. The completion of the verification study (whilst indicating a variable
correlation between the historical and check dataset) has increased the geological confidence in
within the re-sampled areas. No work on the verification of mine/channel samples has been
completed to date on El Silencio and should commence in the lower portion of the mine where
vein exposure is good.
SRK completed a validation exercise on the electronic database provided, where potentially
erroneous data exists in the database SRK has accounted for these areas during the
classification process. SRK has reviewed all QAQC information available and has deemed the
assay database to be in line with industry best practice and therefore deemed it acceptable for
the determination of Mineral Resource Estimates.
SRK has reviewed the Company’s vein domain geological model for the project based on
information gained during a site visit and the verified electronic database provided. SRK has
undertaken 3D modelling to construct mineralisation wireframes for the main mineralised
structures identified to date within the Project area.
SRK used the 3D solids (and interval selections) created in Leapfrog to code the drillholes to
differentiate between mineralisation and waste, and undertook statistical and geostatistical
analyses on the composited data, as constrained by the modelled wireframes.
To define the economic portion of the underground Mineral Resource SRK has assumed a grade
of 3.0 g/t is required over a minimum mining width of 1.0 m, which essentially removes areas of
lower grade material within thinner portions of the vein. Areas of mining depletion have been
removed from the Resource model.
The current lack of a grade control block model (which is updated on a monthly or quarterly
basis), results in difficulty to complete accurate reconciliation between the updated Mineral
Resource estimate and the current mining activities. SRK would recommend the Company
investigate improving the use of localised short term planning models, which would improve the
understanding of the short scale variation in grade, and improve the potential to monitor the
current estimates.
The Mineral Resources as reported will require further technical studies which seek to establish
the technical feasibility and economic viability of developing commercial mining operations at the
Project.
SRK notes the potential for Mineral Resources to be added from extensions of Providencia and
El Silencio high-grade shoots at depth which currently remain open. SRK also considers there to
be potential for Mineral Resources to be added from the mineralisation down-dip of the mine at
Sandra K. The Providencia Mineral Resource (and notably the high grade mineralisation down-
dip) is currently limited by the licence boundary, with the modelled high grade shoot extending in
to the neighbouring property.

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SRK has reviewed the mining plan and the economics of the Segovia and Carla projects. SRK
notes that the present planning for the primary mining is based on a detailed block by block
analysis of all available resources and that this planning process is a big improvement from the
short term schedule as used in previous years. The planning process for the secondary mining is
not as detailed and SRK recommends the implementation of a short term (one year) planning
process for the pillar mining, to minimize the risk of production shortfalls.
Designs and plans are required for the mechanised mining methods to be implemented at
Providencia and El Silencio. SRK recommends that the expected dilution and losses are properly
estimated, as these modifying factors will increase compared with handheld mining methods.
The permitting of the potential El Chocho tailings storage facility (TSF), that could receive dry
tailings from the Maria Dama and Pampa Verde beneficiation plant, is pending approval of
additional technical information being developed by the Company. Construction timelines for this
facility may be affected by the presence of illegal artisanal miners in the development area. The
Company is reportedly dealing with the artisanal miners through legal means.
A tailings filtration process, to be installed at the Maria Dama plant and included in the design of
the new Pampa Verde plant, is being considered as an alternative to the El Chocho TSF to
enable the company to dry-stack tailings on surface in a designated area called Chocho 2. This
area has a saprolitic base layer which will prevent seepage and drainage channels and bunds
will be constructed to contain the stacked tailings on top of geofabric.
SRK understands the following aspects based on information supplied by the Company with
regards to the dry-stacking of tailings:
x The current land use of the location currently being assessed is artisanal mining.
x Zandor holds the surface rights for the location and therefore no land acquisition process
is required, and;
According to the Company there are no permitting requirements to change the tailings disposal
method to dry stack. SRK has reviewed the economics of the Segovia project and most
operational costs and capital requirements have been covered in the 2014 Zandor budget. The
cost reduction programme which was started in 2013 is still continuing and new contract rates
and a new contractor should allow for lower mining costs and more steady production than
achieved over the previous years. The resulting TEM as created by SRK shows a positive NPV
with the highest sensitivity to the commodity price.
SRK notes the following risks, uncertainties or potential impacts that could affect the Project’s
viability or continued viability:
x The Company has been mining at the Project for a number of years, but has not
established a Mineral Reserve; a decision to mine Mineral Resources without first
establishing a Mineral Reserve entails an increased risk of economic and/or technical
failure.
x Recent fluctuations in the price of gold have demonstrated the sensitivity of most gold
projects to price and the risk of an economically viable mine becoming unviable if gold
prices fall below the cost of producing gold and stay there for a prolonged period. As
such, the viability of the Project is subject to variability in the price of gold.

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x The water issues detailed elsewhere in this Report, relating to untreated mine effluents
contributing to contamination of local surface water, as well as changes in the groundwater
due to dewatering activities carried out and to be carried out at the Project, could have a
significant effect on the communities located near the Project.
x The Company’s contract miner has at times failed to comply with health, safety and
environmental standards, which raises health and safety concerns for people working at
the mine as well as for adjacent communities. As well, there has been mining of the
underground pillar supports, which can lead to potential ground collapse and loss of life.
In addition to the risk to health and safety that these issues pose, if an incident occurs it
can be materially adverse to the Company if the reaction to the incident leads to work
actions, strikes, government investigation or intervention, or litigation.
x Closing a mine in a safe, environmentally and socially appropriate manner can cost a
significant amount, particularly those costs associated with the potential need to treat
water that sits in the disused or abandoned mine workings. The Company may not have
adequate financial provisions to properly perform this work once closure of the Project
becomes necessary.

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25 RECOMMENDATIONS
In relation to the required improvements to data quality, SRK would recommend the following:
x SRK noted during the site visit and from review of the QAQC data a number of potential
quality issues at the current Mine laboratory. SRK would recommend the movement of the
current samples to a larger new facility as a high priority, and new equipment will also be
required including furnaces to increase quality and hence confidence in the sampling.
x SRK recommend twinning a portion of the historic drillhole data to determine suitability for
use in quoting block estimates at higher levels of confidence.
x SRK recommend continuing with verification channel sampling at the Segovia Operations
to further increase the geological confidence in the associated block estimates, with a
priority on El Silencio where no verification sampling has currently been completed. SRK
recommend this starts within the lower levels of the mine currently available (dewatered).
x SRK have recommended that further work is required to better understand the potential
economic viability for mining of the lower confidence material within pillars at Providencia.
These studies should include but not be limited to, identification of oxidation (saprolitic
material), possibility of remote mining technologies.
x SRK would recommend the Company look toward the use of localised short term planning
models to improve the understanding of the short scale variation in grade, and improve the
potential to monitor the current estimates.
SRK considers there to be good potential to increase and upgrade the reported Mineral
Resources within the Project area with further exploration drilling and sampling. Areas where
this potential could be realised include:
x El Silencio – verification channel sampling of the areas below Mine Level 29 (which SRK
understand are currently being dewatered) will increase the geological confidence within
these areas and (most significantly) the presence the high grade shoots. In addition, there
is potential to add Resources from at depth, namely from the continuation of high-grade
shoots which currently remain open. SRK would suggest initial wide spaced drilling from
surface to confirm the structure beyond the bottom level of the mine, and subsequent
drilling from underground to increase the sample spacing. To be able to maximise the
drilling coverage from underground the use of defined exploration drives into the hanging
wall to establish exploration platforms would be required. To ensure these are placed in
the correct location further work is recommended to understand and better define the
high-grade shoots.
x Providencia – SRK would recommend the acquisition of the Licence area that covers the
down-dip continuation of the high grade shoot. There is also potential to add material
along strike towards the west from the current area of (down-dip) infill drilling where
additional grade shoots may exist, which are currently poorly defined due to low sample
density.
x Sandra K – mineralisation currently remains open down-dip of the mine at Sandra K, most
notably within the Sandra K Fault block and Chumeca veins, and therefore step-out drilling
would be warranted to test for continuation of the mineralisation within these areas.

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25.1 GCM’s Proposed Exploration Program
In 2014, the Company’s approximately USD 1m exploration program comprises between 6,000
to 7,000 metres of underground drilling distributed amongst the Providencia, Sandra K, El
Silencio and Carla veins to guide the current production and development activities.
Beyond 2014, the exploration program included in the LoMP cash flows comprises ongoing
drilling of approximately 12,000 metres per year at an annual cost of approximately USD 2m to
upgrade inferred resources to measured and indicated resources as production and development
continue in the four primary mining areas at Segovia.
The estimated costs of the above-mentioned exploration drilling program, as proposed by the
Company, are included the LoMP cash flows in Table 25-12.
SRK has recommended the Company consider extending the current Mineral Resources through
a further phase of exploration for the Project area, aimed towards chasing the down-plunge
extensions of high grade shoots on the principal veins, namely Providencia, El Silencio and
Sandra K.
The focus of this exploration program, expected to commence sometime after the Pampa Verde
Project is completed, would be to extend the Company’s current Mineral Resources to extend the
LoMP for the Project area. On completion of this phase of the exploration program, SRK would
recommend the current Mineral Resource Estimate for the Project be updated to better
understand the technical feasibility and economic viability of developing the additional
commercial mining operations at the Project.
25.2 SRK’s Proposed 2014 Work Program
SRK recommends at this stage that the Company should focus on other phases of work need to
be implemented to allow more detailed technical studies, including the development of a grade
control model. SRK note that a grade control model would allow both accurate reconciliation
between the Mineral Resource estimate and the current mining activities, and an improvement to
the understanding (and potential for monitoring) of the short scale variation in grade.
In terms of extending the current Mineral Resource, SRK highlights that whist the current model
represents a significant increase in the Indicated portion of the Mineral Resource, the location of
this material must be reviewed against the mine plans to ensure sufficient development is
planned ahead into these areas to maintain the proposed increase production profile.
Table 25-1: Proposed Exploration and Future Phase of Work Budget for the Project
Description Total Cost (USD)
Development of Grade Control Model 150,000
Update Geological Model 100,000
Update Assessment Mining Plan of revised Mineral Resources 100,000
Total 2014 350,000

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SRK agrees that results to date provide a good case to continue drilling as outlined above, and
the expectation is to add both more resources at a similar level of confidence and potentially
increase levels of confidence within certain areas.
Further to the recommendation provided above, should the Company wish to progress the
extension of the LoMP beyond the current Mineral Resource, initial cost estimates of the required
exploration drilling programme are in the order of USD 10m. Further work will be required to
confirm this budget for the deep drilling. It is SRK’s understanding that this is currently not
included in the LoMP cash flows and would not commence before 2015.

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26 REFERENCES
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Explicativa. Bogota, INGEOMINAS, 241 p.
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eastern Central Andes and its foreland, South America. Ore Geology Reviews, vol. 22, p.
41-59.
x Haeberlin, Y., Moritz, R., Fontboté, L. & Cosca, M., 2004. Carboniferous Orogenic Gold
Deposits at Pataz, Eastern Cordillera, Peru: Geological and Structural Framework,
Paragenesis, Alteration, and 40Ar/39Ar Geochronology. Economic Geology, vol. 99, p. 73-
112.
x Muñoz, O., 2008. Informe Preliminar de Exploracion Sobre El Titulo Minero de F.G.M.
Internal report for Frontino Gold Mines Ltd., January 2008, 19 p.
x Redwood, S.D., 2006. Evaluation of Frontino Gold Mines Ltd., Antioquia, Colombia,
Preliminary Report. Report for Colombia GoldFields Ltd. (Latinvest Capital Ltd.), Toronto,
January 2006, 19 p.
x Redwood, S.D., 2011. Review of Exploration at the Gran Colombia Gold Mine
Municipalities of Segovia and Remedios, Department of Antioquia, Colombia, Report.
Report for Zandor Capital S.A. October 2011.
x Sillitoe, R.H., 2008. Major Gold Deposits and Belts of the North and South American
Cordillera: Distribution, Tectonomagmatic Settings, and Metallogenic Considerations.
Economic Geology, vol. 103, p. 663-687.

Page 167 of 168
x Wilson S.E. 2010. NI 43-101 Technical Report Frontino Gold Mines Ltd. Antioquia,
Colombia Technical Report prepared for Medoro Resources Ltd. Gran Colombia Gold,
S.A., Tapestry Resource Corp, June 9, 2010.
x Gran Colombia (2012) Operación Segovia, Gran Colombia Gold Corporation. Authored by
Erwin Woolf.
x Portex (2011) Informe de resultados – Línea de Base Social G.C.G.
x Camacho, D. “Segovia Environment”. Email to Mike Davies. 24 March 2012.
For and on behalf of SRK Consulting (UK) Limited
Benjamin Parsons, Mike Armitage,

Principal Consultant (Resource Geology), Corporate Consultant (Resource Geology),
SRK Consulting (UK) Limited SRK Consulting (UK) Limited

Page 168 of 168
SRK Consulting Segovia NI43-101 – Technical Appendix A
APPENDIX
A QAQC ANALYSIS

Page A1 of A7
2013 SAMPLE SUBMISSION TO SGS LABORATORIES
CRM
Analysis AU Assays (ppm) from CRM-Standard G901-7 Analysis AU Assays (ppm) from CRM-Standard G910-7
2.000 0.650
1.800
1.600 0.600
1.400
+3SD +3SD
1.200 -3SD 0.550 -3SD

Au Assay (pm)
Au Assay (pm)
+2SD +2SD
1.000 -2SD -2SD
Certified Value Certified Value
0.800 0.500
Au FA-AAS SGS Peru Au FA-AAS SGS Peru
0.600 Au FA-AAS SGS Colombia Au FA-AAS SGS Colombia
0.400 0.450
0.200
0.000 0.400
0 10 20 30 40 50 60 0 5 10 15 20 25 30 35 40
Assay Number Assay Number
Analysis AU Assays (ppm) from CRM-Standard HiSilK2 Analysis AU Assays (ppm) from CRM-Standard SK62
4.000 5.000
3.900 4.500
3.800 4.000
3.700 +3SD 3.500 +3SD
3.600 -3SD 3.000 -3SD
Au Assay (pm)
Au Assay (pm)
+2SD +2SD
3.500 2.500
-2SD -2SD
3.400 2.000
3.300 Au FA-AAS SGS Peru 1.500
Au FA-AAS SGS Peru
3.200 Au FA-AAS SGS 1.000 Au FA-AAS SGS

Colombia Colombia
3.100 0.500
3.000 0.000
0 5 10 15 20 25 30 35 40 0 10 20 30 40 50 60
Analysis AU Assays (ppm) from CRM-Standard HiSilP1 Analysis AU Assays (ppm) from CRM-Standard SL61
13.500 6.800
6.600
13.000
6.400
12.500
+3SD
6.200 +3SD
Au Assay (pm)
Au Assay (pm)
-3SD
6.000 -3SD
12.000 +2SD
5.800 +2SD
-2SD
11.500 5.600 -2SD
Certified Value
Au FA-AAS SGS Peru 5.400 Certified Value

11.000
5.200
10.500 5.000
0 2 4 6 8 10 12 14 0 5
Assay Number Assay Number 10 15
Analysis AU Assays (ppm) from CRM-Standard SN60 Analysis AU Assays (ppm) from CRM-Standard SP49
12.000 20.000
19.500
10.000
19.000 +3SD
+3SD
8.000
-3SD -3SD
Au Assay (pm)
Au Assay (pm)
18.500
+2SD +2SD
6.000
-2SD -2SD
18.000
4.000
Au FA-AAS SGS 17.500 Au FA-AAS SGS Peru
Peru
Au FA-AAS SGS
Au FA-AAS SGS
2.000 Colombia
Colombia 17.000
0.000 16.500
0 10 20 30 40 50 60 -1 1 3 5 7 9 11 13 15
Analysis AU Assays (ppm) from CRM-Standard SQ47

44.000
42.000
40.000
+3SD
Au Assay (pm)
-3SD
38.000
+2SD
36.000
-2SD
Certified Value
34.000
Au FA-AAS SGS Peru
32.000
30.000
0 1 2 3 4 5
Assay Number

Page A2 of A7
BLANKS (FINE)
Analysis AU Assays (ppm)-BLF

0.030
0.025
DL
0.020
3DL
5DL
0.015 Au FA-AAS SGS Peru
Au FA-AAS SGS Colombia
0.010
0.005
0.000
0 1 1 2 2 3 3 4 4 5 5
BLANKS (COARSE)
Analysis AU Assays (ppm)-BLG

0.060
0.050
DL
0.040
3DL
5DL
0.030 Au FA-AAS SGS Peru
Au FA-AAS SGS Colombia
0.020
0.010
0.000
0 20 40 60 80 100 120 140

Page A3 of A7
DUPLICATES
Analysis AU Assays (ppm)- Coarse Duplicates Analysis AU Assays (ppm)- Coarse Duplicates (DUG)
(DUG) 0.6
4
3.5 0.5
y = 1.2376x - 0.0044
R² = 0.9996
y = 0.9552x + 0.0078
3 R² = 0.9962
0.4
AU Duplicate (ppm)
X=Y
AU Duplicate (ppm)
2.5 X=Y
0.3 Au FA-AAS
2
Au FA-AAS SGS Peru
SGS
Linear (Au FA-
1.5 Colombia
0.2 AAS SGS Peru)
1
0.1
0.5
0 0
0 0.5 1 1.5 2 2.5 3 3.5 4 0 0.1 0.2 0.3 0.4 0.5 0.6
AU Original (ppm) AU Original (ppm)
Analysis AU Assays (ppm)- Pulp Duplicates (DUP) Analysis AU Assays (ppm)- Pulp Duplicates (DUP)
0.4
4
0.35
3.5 y = 0.9194x
R² = 0.9999
0.3
y = 0.9154x + 0.1094
3 R² = 0.9956
0.25
AU Duplicate (ppm)
X=Y
X=Y
AU Duplicate (ppm)
2.5
Au FA-AAS SGS
0.2 Peru
2 Linear (Au FA-
Au FA-AAS
AAS SGS Peru)
SGS 0.15
Colombia
1.5
0.1
1
0.05
0.5
0
0
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4
0 0.5 1 1.5 2 2.5 3 3.5 4
Analysis AU Assays (ppm)- Field Duplicates (FD) Analysis AU Assays (ppm)- Field Duplicates (FD)
4
0.9
3.5 y = 0.6148x
0.8
R² = -0.029
y = 0.6708x
3 R² = 0.527 0.7
X=Y
AU Duplicate (ppm)
X=Y 0.6
2.5
AU Duplicate (ppm)
Au FA-AAS SGS
Peru
0.5
2 Linear (Au FA-AAS
Au FA-AAS SGS Peru)
SGS 0.4
Colombia
1.5
0.3
1
0.2
0.5 0.1
0 0
0 0.5 1 1.5 2 2.5 3 3.5 4 0 0.2 0.4 0.6 0.8 1


Page A4 of A7
2013 SAMPLE SUBMISSION TO ZANDOR CAPITAL MINE (GEM) LABORATORY
CRM
MARCH 2013
Analysis AU Assays (ppm) from CRM Standard SP49 Analysis AU Assays (ppm) from CRM Standard SQ47
19.6 41.00
19.4
19.2 40.50
AU Assay (ppm)
AU Assay (ppm)
19 SP49 SQ47
40.00
18.8 Certified Value Certified Value
18.6 39.50
-2SD -2SD
18.4
18.2 +2SD 39.00 +2SD
18 -3SD -3SD
17.8 38.50
+3SD +3SD
0 1 2 3 4 0 1 2 3 4 5
Analysis AU Assays (ppm) from CRM Standard HiSILP1 Analysis AU Assays (ppm) from CRM Standard 164156
14
1.90
13.5
1.70
AU Assay (ppm)
AU Assay (ppm)
13 HiSILP1 164156
1.50
12.5 Certified Value 1.30 Certified Value
12 -2SD 1.10 -2SD
11.5 0.90
+2SD +2SD
11 0.70
-3SD -3SD
10.5 0.50
+3SD +3SD
0 5 10 15 0 2 4 6 8
JUNE 2013
Analysis AU Assays (ppm) from CRM Standard OREAS 12a Analysis AU Assays (ppm) from CRM Standard OREAS 12a
14 13
13 12
11
12
Analysis1 10 Analysis2
Au Assay (ppm)
Au Assay (ppm)
11
Certified Value 9 Certified Value
10
-3SD 8 -3SD
9
-2SD 7 -2SD
8 +2SD 6 +2SD
7 +3SD 5
+3SD
6 4
0 5 10 15 20 25 30 0 5 10 15 20 25 30

Page A5 of A7
BLANKS
MARCH 2013
Analysis AU Assays (ppm) - Fine
3
2.5
2
Au ppm
1.5
AU Assays (ppm) - Fine

1
0.5
0
0 10 20 30 40 50 60 70 80
Sample Number
APRIL 2013
Analysis AU Assays (ppm) - Fine Analysis AU Assays (ppm) - Coarse
3.50 3.50
3.00 3.00
2.50 2.50
2.00 2.00
Au ppm
Au ppm
1.50 1.50
Au Assays (ppm) - Fine Au Assays (ppm) - Coarse
1.00 1.00
0.50 0.50
0.00 0.00
10 15 20 25 30 10 15 20 25 30
Sample Number Sample Number
MAY 2013
Analysis AU Assays (ppm) Fine Analysis AU Assays (ppm) Coarse
2.50 1.8
1.6
2.00
1.4
1.2
1.50
1
Au ppm
Au ppm
0.8
AU Assays (ppm) Fine AU Assays (ppm) Coarse
1.00
0.6
0.4
0.50
0.2
0.00 0
0 5 10 15 20 25 30 35 0 5 10 15 20 25 30 35
JUNE 2013
Analysis AU Assays (ppm) - Fine Analysis AU Assays (ppm) - Coarse
2 2
1.8 1.8
1.6 1.6
1.4 1.4
1.2 1.2
Au ppm
Au ppm
1 1
0.8 Au Assays (ppm) - Fine 0.8 AU Assays (ppm) - Coarse
0.6 0.6
0.4 0.4
0.2 0.2
0 0
0 2 4 6 8 10 12 14 16 18 20 0 2 4 6 8 10 12 14 16 18 20

Page A6 of A7
EXTERNAL LABORATORY DUPLICATES
MARCH 2013
Analysis AU Assays (ppm) - Pulp Duplicates Analysis AU Assays (ppm) - Coarse Duplicates
80.00 80.00
70.00 70.00
60.00 60.00
y = 0.9486x - 0.6182
Au Duplicates (ppm)
Au Duplicates (ppm)
50.00 50.00 y = 0.7774x + 1.571
R² = 0.8663 R² = 0.737
40.00 AU Assays (ppm) - Pulp 40.00 AU Assays (ppm) - Coarse

X-Y X-Y
30.00 Linear (AU Assays (ppm) - Pulp) 30.00 Linear (AU Assays (ppm) - Coarse)
20.00 20.00
10.00 10.00
0.00 0.00
0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00
APRIL 2013
120.00 120.00
100.00 100.00
80.00 y = 0.9529x + 0.1231 80.00 y = 0.7x + 3.8751

AU Duplicates (ppm)
R² = 0.908 Au Duplicates (ppm) R² = 0.5935
60.00 Duplicates - pulps 60.00 Duplicates - Coarse

X=Y X-Y
40.00 Linear (Duplicates - pulps) 40.00 Linear (Duplicates - Coarse)
20.00 20.00
0.00 0.00
0.00 20.00 40.00 60.00 80.00 100.00 120.00 0.00 20.00 40.00 60.00 80.00 100.00 120.00
AU Original (ppm) Au Original (ppm)
MAY 2013
160.00
120.00
140.00
100.00
120.00
80.00
AU Duplicates (ppm)
AU Duplicates (ppm)
y = 1.0293x - 0.5982 100.00 y = 0.9256x + 0.6405

R² = 0.8975 R² = 0.7447
60.00 80.00 AU Assays (ppm) - Coarse

AU Assays (ppm) - Pulp
X-Y X-Y
60.00
Linear (AU Assays (ppm) - Pulp) Linear (AU Assays (ppm) - Coarse)
40.00
40.00
20.00
20.00
0.00 0.00
0.00 20.00 40.00 60.00 80.00 100.00 120.00 0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00
JUNE 2013
100.00 120.00
100.00
80.00
80.00 y = 0.9929x + 0.7603

y = 1.0015x + 0.8514
Au Duplicates (ppm)
Au Duplicates (ppm)
R² = 0.6029
60.00 R² = 0.9219
AU Assays (ppm) Duplicates - pulp Au Assays (ppm) Duplicates - coarse
60.00
X-Y X-Y
40.00
Linear (AU Assays (ppm) Duplicates - 40.00 Linear (Au Assays (ppm) Duplicates -
pulp) coarse)
20.00
20.00
0.00 0.00
0.00 20.00 40.00 60.00 80.00 100.00 0.00 20.00 40.00 60.00 80.00 100.00 120.00

Page A7 of A7
SRK Consulting Segovia NI43-101 – Technical Appendix B
APPENDIX
B OUTLIER EVALUATION PLOTS

Page B1 of B4
Providencia high grade shoot – GROUP 1100
Providencia Vein – GROUP 1200
Sandra K (Techo, Piso and Fault Block) Vein – GROUP 2000

Page B2 of B4
Sandra K (Chumeca) Vein – GROUP 2100
El Silencio high grade shoot – GROUP 3100
El Silencio Vein – GROUP 3200

Page B3 of B4
Carla Vein – GROUP 4000
Las Verticales Vein – GROUP 5000

Page B4 of B4
SRK Consulting Segovia NI43-101 – Technical Appendix C
APPENDIX
C RAW AND LOG HISTOGRAMS
U5575 Segovia February 2014 NI43-10_Report Final August, 2013

Page C1 of C5

Page C2 of C5
Sandra K (Techo, Piso and Fault Block) Vein – GROUP 2000
Sandra K (Chumeca) Vein – GROUP 2100

Page C3 of C5

Page C4 of C5

Page C5 of C5
SRK Consulting Segovia NI43-101 – Technical Appendix D
APPENDIX
D VARIOGRAMS

Page D1 of D5
Providencia
Providencia high grade shoot (GROUP 1100) and Providencia Vein (GROUP 1200)
Variogram Model - Global

Pairwise Relative Vario. Distance (m)
0 50 100 150
1.0 1.0
N44
N307
0.5 0.5

N10
0.0 0.0
0 50 100 150
Distance (m)
Isatis
DH_COMP/1M_COMP_0712(GROUP{GROUP=1100})
rgoddard
- Variable #1 : AUCAP
Pairwise Relative Variogram : in 3 direction(s) Jul 12 2013
D1 : N307
U5575_Segovia
Angular tolerance = 10.00
Lag = 2.00m, Count = 60 lags, Tolerance = 50.00%
Horizontal Slicing = 50.00m
Vertical Slicing = 500.00m
D2 : N44
D3 : N10
Model : 4 basic structure(s)
Global rotation = Azimuth=N280.00 Dip=30.00 Pitch=30.00 (Geologist Plane)
S1 - Nugget effect, Sill = 0.35
S2 - Spherical - Range = 4.00m, Sill = 0.329
Directional Scales = ( 4.00m, 5.00m, 4.00m)

Distance (m)
0 50 100 150
0.7 0.7
0.6 0.6
0.5
N10 0.5
0.4 0.4
N307
0.3 0.3
0.2 0.2
N44
0.1 0.1
0.0 0.0
-0.1 -0.1
0 50 100 150
Distance (m)
Isatis
rgoddard
D1 : N307
U5575_Segovia
D2 : N44
D3 : N10
Global rotation = Azimuth=N280.00 Dip=30.00 Pitch=30.00 (Geologist Plane)

Page D2 of D5
Sandra K
Sandra K Techo, Piso and Fault Block Vein (GROUP 2000) and Sandra K Chumeca Vein
(GROUP 2100)
Variogram Model - Globa

Distance (m)
0 50 100 150
0.75 0.75
N97
0.50 0.50
N97

0.25 0.25
N7
0.00 0.00
0 50 100 150
Distance (m)
Isatis
rgoddard
D1 : N7
U5575_Segovia
D2 : N97_01
D3 : N97
Global rotation = Azimuth=N7.00 Dip=29.00 (Geologist Plane)
Variogram Model - Fit

Distance (m)
0 25 50 75 100 125
0.75 0.75
0.50 0.50
0.25 0.25
0.00 0.00
0 25 50 75 100 125
Distance (m)
Isatis
rgoddard
D1 :
U5575_Segovia
Global rotation = No rotation
Directional Scales = ( 5.00m, 5.00m)
Directional Scales = ( 100.00m, 100.00m)

Page D3 of D5
El Silencio
El Silencio high grade shoot (GROUP 3100) and El Silencio Vein (GROUP 3200)

Pairwise Relative Vario. Distance (m)
0 50 100 150
1.0 1.0
N335
0.5 0.5

N59
0.0 0.0
0 50 100 150
Distance (m)
Isatis
rgoddard
D1 : N335
U5575_Segovia
D2 : N59
D3 : N105
Global rotation = Azimuth=N15.00 Dip=27.00 Pitch=-43.00 (Geologist Plane)

Distance (m)
0 50 100 150
1.5 1.5
N105
1.0 1.0
N59
0.5 0.5
N335
0.0 0.0
0 50 100 150
Distance (m)
Isatis
rgoddard
D1 : N335
U5575_Segovia
D2 : N59
D3 : N105
Global rotation = Azimuth=N15.00 Dip=27.00 Pitch=-43.00 (Geologist Plane)

Page D4 of D5
Carla
Carla Vein (GROUP 4000). Along strike, down dip and across strike showing left to right.


Distance (m) Distance (m) Distance (m)
0 50 100 150 0 50 100 150 0 10 20 30
184 1.25 43 1.25

1.00 117 1.00 114 0.9 0.9
165
131 183
19 0.8 0.8
1.00 1.00 23
0.7 0.7
0.75 53 0.75 286 42
52
85 0.6 0.6
104 0.75 0.75 60
0.565 81 65 110 0.5

205

77 69 69 57
0.50 0.50
396 0.4 137 112 0.4
217 218
0.50 0.50 19
0.3 0.3
0.25 0.25 0.2 0.2

0.25 0.25
0.1 0.1
0.00 0.00 0.00 0.00 0.0 0.0

0 50 100 150 0 50 100 150 0 10 20 30
Distance (m) Distance (m) Distance (m)
Las Verticales
Las Verticales Veins (GROUP 5000)
Variogram Model - Fitti

Distance (m)
0 100 200 300 400
1.0 1.0
0.5 0.5
0.0 0.0
0 100 200 300 400

Distance (m)
Isatis
rgoddard
D1 :
U5575_Segovia
Global rotation = No rotation

Page D5 of D5
SRK Consulting Segovia NI43-101 – Technical Appendix E
APPENDIX
E BLOCK GRADE VISUAL VALIDATION

Page E1 of E5
Providencia

Page E2 of E5
Sandra K
Sandra K Techo, Piso and Fault Block Veins (top) and Chumeca Vein (bottom)

Page E3 of E5
El Silencio

Page E4 of E5
Carla and Las Verticales (top and bottom respectively)

Page E5 of E5
SRK Consulting Segovia NI43-101 – Technical Appendix F
APPENDIX
F VALIDATION PLOTS

Page F1 of F12
100 700
90
600
80
70 500
No. Samples
60
Au (ppm)
400
50
300
40
30 200
20
100
10
0 0
930400 930600 930800 931000 931200 931400 931600 931800 932000 932200 932400 932600
X-Co-ordinate
180 900
160 800
140 700
120 600
No. Samples
Au (ppm)
100 500
80 400
60 300
40 200
20 100
0 0
1272200 1272400 1272600 1272800 1273000 1273200 1273400 1273600
Y Co-ordinate
180 600
160
500
140
400
120
No. Samples
Au (ppm)
100 300
80 200
60
100
40
0
20
0 -100
0 100 200 300 400 500 600 700
Z Co-ordinate

Page F2 of F12
14 1400
12 1200
10 1000
No. Samples
Au (ppm)
8 800
6 600
4 400
2 200
0 0
930000 930500 931000 931500 932000 932500 933000
X-Co-ordinate
12 2500
10 2000
8 1500
No. Samples
Au (ppm)
6 1000
4 500
2 0
0 -500
1272200 1272400 1272600 1272800 1273000 1273200 1273400 1273600 1273800
Y Co-ordinate
25 3000
2500
20
2000
No. Samples
15
Au (ppm)
1500
10
1000
5
500
0 0
0 100 200 300 400 500 600 700 800
Z Co-ordinate

Page F3 of F12
Sandra K Techo Vein – GROUP 2000 (KZONE 2210)
35 900
800
30
700
25
600
No. Samples
Au (ppm)
20 500
15 400
300
10
200
5
100
0 0
932200 932300 932400 932500 932600 932700 932800 932900
X-Co-ordinate
30 700
25 600
500
20
No. Samples
Au (ppm)
400
15
300
10
200
5 100
0 0
1274800 1275000 1275200 1275400 1275600 1275800 1276000 1276200
Y Co-ordinate
50 900
800
40
700
600
30
Au (ppm)
500
No. Samples
20 400
300
10
200
100
0
250 300 350 400 450 500 550 600 650 0
-10 -100
Z Co-ordinate

Page F4 of F12
Sandra K Piso Vein – GROUP 2000 (KZONE 2220)
18 600
16
500
14
12 400
No. Samples
Au (ppm)
10
300
8
6 200
4
100
2
0 0
932200 932250 932300 932350 932400 932450 932500 932550 932600 932650
X-Co-ordinate
25 450
400
20 350
300
No. Samples
15
Au (ppm)
250
200
10
150
5 100
50
0 0
1275050 1275100 1275150 1275200 1275250 1275300 1275350 1275400 1275450 1275500
Y Co-ordinate
20 400
18 350
16
300
14
250
No. Samples
12
Au (ppm)
10 200
8 150
6
100
4
2 50
0 0
320 370 420 470 520 570 620 670
Z Co-ordinate

Page F5 of F12
Sandra K Fault Block Vein – GROUP 2000 (KZONE 2230)
60 6
50 5
40 4
No. Samples
Au (ppm)
30 3
20 2
10 1
0 0
932400 932500 932600 932700 932800 932900 933000 933100 933200 933300
X-Co-ordinate
50 6
45
5
40
35
4
No. Samples
30
Au (ppm)
25 3
20
2
15
10
1
5
0 0
127470012748001274900127500012751001275200127530012754001275500127560012757001275800
Y Co-ordinate
Series1 Series2 Series3
40 4.5
35 4
30 3.5
25 3
Au (ppm)
No. Samples
20 2.5
15 2
10 1.5
5 1
0 0.5
0 100 200 300 400 500 600
-5 0
Z Co-ordinate

Page F6 of F12
Sandra K Fault Block Vein – GROUP 2000 (KZONE 2240)
10 2.5
9
8 2
7
No. Samples
6 1.5
Au (ppm)
5
4 1
3
2 0.5
1
0 0
932400 932500 932600 932700 932800 932900 933000 933100
X-Co-ordinate
Sample mean Model mean No. samples
10 3.5
9
3
8
7 2.5
No. Samples
6
Au (ppm)
2
5
1.5
4
3 1
2
0.5
1
0 0
1274950 1275000 1275050 1275100 1275150 1275200 1275250 1275300 1275350 1275400 1275450
Y Co-ordinate
10 3.5
9
3
8
7 2.5
No. Samples
6
Au (ppm)
2
5
1.5
4
3 1
2
0.5
1
0 0
200 250 300 350 400 450
Z Co-ordinate

Page F7 of F12
Sandra K Chumeca Vein – GROUP 2100
50 160
45 140
40 120
35
100
No. Samples
30
Au (ppm)
80
25
60
20
40
15
10 20
5 0
0 -20
931900 932000 932100 932200 932300 932400 932500 932600 932700
X-Co-ordinate
30 300
25 250
200
20
No. Samples
Au (ppm)
150
15
100
10
50
5 0
0 -50
1275250 1275300 1275350 1275400 1275450 1275500 1275550
Y Co-ordinate
25 350
300
20
250
200
No. Samples
15
Au (ppm)
150
10 100
50
5
0
0 -50
350 400 450 500 550 600
Z Co-ordinate

Page F8 of F12
100 450
90 400
80 350
70
300
No. Samples
60
Au (ppm)
250
50
200
40
150
30
20 100
10 50
0 0
930800 930900 931000 931100 931200 931300 931400 931500 931600 931700 931800
X-Co-ordinate
60 400
350
50
300
40
250
No. Samples
Au (ppm)
30 200
150
20
100
10
50
0 0
1274600 1274800 1275000 1275200 1275400 1275600 1275800 1276000
Y Co-ordinate
100 350
90
300
80
70 250
No. Samples
60
200
Au (ppm)
50
150
40
30 100
20
50
10
0 0
-300 -200 -100 0 100 200 300
Z Co-ordinate

Page F9 of F12
16 1200
14
1000
12
800
10
No. Samples
Au (ppm)
8 600
6
400
4
200
2
0 0
930200 930400 930600 930800 931000 931200 931400 931600 931800 932000
X-Co-ordinate
35 800
30 700
600
25
500
No. Samples
Au (ppm)
20
400
15
300
10
200
5 100
0 0
1273500 1274000 1274500 1275000 1275500 1276000 1276500
Y Co-ordinate
30 1400
25 1200
1000
20
No. Samples
800
Au (ppm)
15
600
10
400
5 200
0 0
-300 -200 -100 0 100 200 300 400 500
Z Co-ordinate

Page F10 of F12
45 60
40
50
35
30 40
No. Samples
Au (ppm)
25
30
20
15 20
10
10
5
0 0
931200 931300 931400 931500 931600 931700 931800 931900 932000 932100
X-Co-ordinate
25 45
40
20 35
30
No. Samples
15
Au (ppm)
25
20
10
15
5 10
0 0
1267700 1267800 1267900 1268000 1268100 1268200 1268300 1268400 1268500 1268600 1268700
Y Co-ordinate
45 35
40
30
35
25
30
No. Samples
Au (ppm)
25 20
20 15
15
10
10
5
5
0 0
0 100 200 300 400 500 600 700 800
Z Co-ordinate

Page F11 of F12
20 20
18 18
16 16
14 14
No. Samples
12 12
Au (ppm)
10 10
8 8
6 6
4 4
2 2
0 0
928500 929000 929500 930000 930500 931000 931500
X-Co-ordinate
20 18
18 16
16 14
14
12
No. Samples
12
Au (ppm)
10
10
8
8
6
6
4 4
2 2
0 0
1271500 1272000 1272500 1273000 1273500 1274000 1274500 1275000 1275500
Y Co-ordinate
25 18
16
20 14
12
No. Samples
15
Au (ppm)
10
8
10
6
5 4
0 0
200 300 400 500 600 700 800
Z Co-ordinate

Page F12 of F12
SRK Consulting Segovia NI43-101 – Technical Appendix G
APPENDIX
G MODEL CLASSIFICATION IMAGES

Page G1 of G6
Providencia

Page G2 of G6
Sandra K Techo and Fault Block

Page G3 of G6
Sandra K Piso and Chumeca

Page G4 of G6
El Silencio

Page G5 of G6
Carla
Las Verticales

Page G6 of G6
17 Churchill Way
CF10 2HH, Wales
United Kingdom
URL: www.srk.co.uk
Tel: + 44 (0) 2920 348 150
Fax: + 44 (0) 2920 348 199
Certificate and Consent

To accompany the report entitled: “NI43-101 Technical Report on a Preliminary Economic Assessment on
the Segovia and Carla Operations, Department of Antioquia, Colombia, February 2014”
I, Benjamin Parsons, MSc, MAusIMM CP(Geo) hereby certify that:

1. I am a Principal Resource Geologist with SRK Consulting (US) Inc, Suite 3000, 7175 West Jefferson
Avenue, Lakewood, CO, 80235, USA\
2. I reside at 3291, Westbrook Lane, Highlands Ranch, USA. 80129;
3. I graduated with a degree in Exploration Geology from Cardiff University, UK in 1999. In addition, I
have obtained a Masters degree (MSc) in Mineral Resources from Cardiff University, UK in 2000
and have worked as a geologist for a total of 13 years since my graduation from university;
4. I am a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM CP(Geo)
Membership Number 222568);
5. I have not received, nor do I expect to receive, any interest, directly or indirectly, in the Segovia or
Carla projects or securities in Gran Colombia Gold Corp.;
6. I have read National Instrument 43-101 and Form 43-101F1 and, by reason of my education and
past relevant work experience, I fulfil the requirements to be a “Qualified Person” for the purposes of
National Instrument 43-101. The technical report has been prepared in compliance with National
Instrument 43-101 and Form 43-101F1;
7. I, as a Qualified Person, am independent of the issuer as defined in Section 1.5 of National
Instrument 43-101;
8. I am responsible for the preparation of the Segovia and Carla Mineral Resource estimates
(NI43-101 Items 1 – 14, 19, 23, 25, 26 and 27) included in this report, in addition I reviewed the
work performed by other qualified SRK staff in NI43-101 developing items 17,18 ,20 and 24,
and take overall responsibility for the accompanying technical report.
9. I have visited the project area most recently between 4 – 7 June 2013;
10. I have previously been involved in authoring the Mineral Resource Estimate and associated
technical report entitled “A NI43-101 technical report on the Providencia, Las Verticales, Sandra K
and El Silencio Veins at the Segovia Gold Project, Antioquia, Colombia.” Dated April 2012, the report
“A NI43-101 Technical Report on the Carla Project, Antioquia, Colombia.” Dated May 2013.
11. 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;
12. SRK was retained by Gran Colombia Gold Corp., to prepare an Independent Mineral Resource
Estimate and associated preliminary economic analysis for the Segovia Project in accordance with
National Instrument 43-101; and
13. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority
and any publication by them for regulatory purposes, including electronic publication in the public
company files on their websites accessible by the public, of the Technical Report.
Benjamin Parsons, MSc, MAusIMM (CP)

Principal Consultant (Resource Geology)
Group Offices: Africa

Registered Address: 21 Gold Tops, City and County of Newport, NP20 4PG, Asia
Wales, United Kingdom. Australia
SRK Consulting (UK) Limited Reg No 01575403 (England and Wales) Europe
North America
South America
17 Churchill Way
CF10 2HH, Wales
United Kingdom
URL: www.srk.co.uk
Tel: + 44 (0) 2920 348 150
Fax: + 44 (0) 2920 348 199
Certificate and Consent

To accompany the report entitled: “NI43-101 Technical Report on a Preliminary Economic Assessment on
the Segovia and Carla Operations, Department of Antioquia, Colombia, February 2014”
I, Jurgen Fuykschot, MSc, MAusIMM CP(Mining Engineering) hereby certify that:
1. I am a Principal Consultant (Mining Engineering) with the firm of SRK Consulting (UK) Ltd (“SRK”)
with an office at Churchill House, 17 Churchill Way, Cardiff, UK CF10 2HH;
2. I am a graduate of Delft University of Technology, The Netherlands in 1991 (MSc Mining
Engineering), and qualified with an MBA from Deakin University, Melbourne, Australia in 2001. I
have practiced my profession continuously since 1992, initially as a mining engineer based in the
Netherland and Australia from 1995 until joining SRK (UK) in 2006 where I have worked extensively
on technical studies on metal projects. My main areas of expertise are mine design and scheduling;
3. I am registered with the Australian Institute of Mining and Metallurgy MAusIMM CP(Mining
Engineering Membership Number 306269);
4. I have not received, nor do I expect to receive, any interest, directly or indirectly, in the Zandor
Project or securities of Gran Colombia;
5. I have read the definition of “qualified person” set out in National Instrument 43-101 and certify that
by virtue of my education, affiliation to a professional association and past relevant work experience,
I fulfil the requirements to be a “qualified person” for the purposes of National Instrument 43-101;
6. I, as a qualified person, I am independent of the issuer as defined in Section 1.5 of National
Instrument 43-101;
7. I am responsible for the preparation of the mining and economic analysis (NI43-101 Items 15 – 16,
21, 22, 25, 26 and 27) of the Segovia and Carla Project included in this report, in addition I
supervised the work performed by other qualified SRK staff in developing NI43-101 items 17, 18, 20
and 24, and am responsible for these sections of the report.
8. I have not personally inspected the subject project;
9. I have had no prior involvement with the subject property;
10. I have read National Instrument 43-101 and confirm that this technical report has been prepared in
compliance therewith;
11. That, as of the date of this technical report, to the best of my knowledge, information and belief, this
technical report contains all scientific and technical information that is required to be disclosed to
make the technical report not misleading;
12. SRK was retained by Gran Colombia Gold Corp., to prepare an Independent Mineral Resource
Estimate and associated preliminary economic analysis for the Segovia Project in accordance with
National Instrument 43-101; and
13. I consent to the filing of the technical report with any stock exchange and other regulatory authority
and any publication for regulatory purposes, including electronic publication in the public company
files on their websites accessible to the public of extracts from the technical report; and
Jurgen Fuykschot, MSc, MAusIMM (CP)

Principal Consultant (Mining Engineering)
Group Offices: Africa

Registered Address: 21 Gold Tops, City and County of Newport, NP20 4PG, Asia
Wales, United Kingdom. Australia
SRK Consulting (UK) Limited Reg No 01575403 (England and Wales) Europe
North America
South America

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NI43-101 TECHNICAL REPORT ON A

SRK Consulting (UK) Limited

COPYRIGHT AND DISCLAIMER

U5575 Segovia February 2014 NI43-10_Report Final February 2014

SRK Legal Entity: SRK Consulting (UK) Limited

NI43-101 Technical Report On A Preliminary Economic Analysis On The

Benjamin Parsons, Principal Consultant (Resource Geology)

Jurgen Fuykschot, Principal Consultant (Mining Engineering)

U5575 Segovia February 2014 NI43-10_Report Final February 2014

This preliminary economic assessment (“PEA”) is preliminary in nature, includes inferred

U5575 Segovia February 2014 NI43-10_Report Final February 2014

4 EXPLORATION, DRILLING AND SAMPLING

U5575 Segovia February 2014 NI43-10_Report Final February 2014

5 DATA QUALITY AND QUANTITY

U5575 Segovia February 2014 NI43-10_Report Final February 2014

6 MINERAL RESOURCE ESTIMATE

U5575 Segovia February 2014 NI43-10_Report Final February 2014

U5575 Segovia February 2014 NI43-10_Report Final February 2014

Segovia LTR 681 11.6 254

7 COMPARISON WITH PREVIOUS ESTIMATE

U5575 Segovia February 2014 NI43-10_Report Final February 2014

x Providencia: Reduction in tonnage (-8%) due to a newly interpreted eastern bounding

x Las Verticales: Increase in tonnage (+61%) due to re-interpretation by the Company of

U5575 Segovia February 2014 NI43-10_Report Final February 2014

8 CONCLUSIONS AND RECOMMENDATIONS

U5575 Segovia February 2014 NI43-10_Report Final February 2014

x Continuation of the verification channel sampling at the Segovia Operations to further

U5575 Segovia February 2014 NI43-10_Report Final February 2014

x Sandra K – mineralisation currently remains open down-dip of the mine at Sandra K,

U5575 Segovia February 2014 NI43-10_Report Final February 2014

U5575 Segovia February 2014 NI43-10_Report Final February 2014

This preliminary economic assessment is preliminary in nature, includes inferred mineral

U5575 Segovia February 2014 NI43-10_Report Final February 2014

U5575 Segovia February 2014 NI43-10_Report Final February 2014

8.5 Water Management

x Surface water runoff (pluvial drainage) is likely to represent significant water

U5575 Segovia February 2014 NI43-10_Report Final February 2014

U5575 Segovia February 2014 NI43-10_Report Final February 2014

x Stakeholder engagement: Zandor has conducted a stakeholder identification and

U5575 Segovia February 2014 NI43-10_Report Final February 2014

U5575 Segovia February 2014 NI43-10_Report Final February 2014

6.2 Local Geology ........................................................................................................................29

U5575 Segovia February 2014 NI43-10_Report Final February 2014

10.4.2 SGS Laboratory ...........................................................................................................61

U5575 Segovia February 2014 NI43-10_Report Final February 2014

13.12.2 Block Model Validation............................................................................................93

U5575 Segovia February 2014 NI43-10_Report Final February 2014

19.6 Conclusions ..........................................................................................................................142

U5575 Segovia February 2014 NI43-10_Report Final February 2014

U5575 Segovia February 2014 NI43-10_Report Final February 2014

U5575 Segovia February 2014 NI43-10_Report Final February 2014

List of Technical Appendices

U5575 Segovia February 2014 NI43-10_Report Final February 2014

NI43-101 TECHNICAL REPORT ON A MINERAL RESOURCE

The Segovia-Remedios gold district is hosted by the Segovia Batholith, which is up to 10 km

U5575 Segovia February 2014 NI43-10_Report Final February 2014

1.2 Terms of Reference

1.3 Scope of Work

x topography, landscape, access;

x Pillar mining plan

x Operational costs, and payment structure of the small miners

U5575 Segovia February 2014 NI43-10_Report Final February 2014

1.4 Source of Information

x discussions with directors, employees and consultants of the Company;