The document summarizes a pre-feasibility study for the Yanahuanca Gold Project located in La Libertad, Peru at an elevation of 4000m. Key details include an open pit mine plan to extract 293 million tonnes of ore grading 1.23 g/t gold over a 27 year mine life. A conventional truck and shovel operation is proposed along with a heap leach process to recover gold. Economic analysis shows an after-tax NPV of $470 million and IRR of 32.5% assuming a gold price of $1100/oz. The study recommends advancing the project to the next stage.

1. Yanahuanca Gold Project
• Location: La Libertad, Peru
• Elevation: 4000m asl
• Lithology: Sedimentary and Volcanic Rocks
• Deposit: High Sulphidation Epithermal Gold
Peru
Thomas Bamford Gianluca Barbieri
Camilla Sublett Matthew Visser
1. Introduction
2. Operations Planning
4. Pit Design Inputs 7. Environment/Social/Closure
3. WRD & HLF
5. Pit Design/Site Map
6. Production Schedule
8. Economic Analysis
9. Recommendations
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Tonnage(Mt)
Year
Waste
Ore
Ore: 293 Mt
Waste: 114 Mt
Stripping Ratio: 0.4
Avg. Grade: 1.23 g/t
Pit Length: 2,430 m
Pit Width: 1,070 m
Pit Depth: 320 m
Site Infrastructure
1. Emergency Pond
2. Water Treatment Plant
3. Processing Plant
4. Pregnant Pond
5. HLF Crusher
6. Explosive Magazine
7. Warehouse
8. Maintenance Shop
9. Storage
10. Administration Office
11. Security Gatehouse
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Legend
Access Road with Powerlines
Haul Road
50m Contour Lines
Geomechanical Data1
Slope Stability2
Inputs3
• Andesite
“Fair”; 3 Joint Sets; UCS 176 MPa
• Sandstone
“Fair”; 5 Joint Sets; UCS 126 MPa
• Bench Height: 10 m
• Bench Width: 6.5 m
• Bench Face Angle: 60-75°
• Slope Min. Factor of Safety: 1.2
• Structurally Controlled Failure
Parameters
Gold Price $1,100 /t.oz.
Gold Recovery 70%
Total Mining Cost $5.44 /t ore
Milling Cost $2.82 /t ore
Mining Capacity 20,000,000 t/year
Milling Capacity 35,000 t/day
330 day/year
Transport &
Refining Cost
$57.64/toz
Royalty 5% NSR
1 Waste Rock Dump
• Storage: 171 Mm3
• Configuration: Side Hill Fill
• Leaching Method: Crush-Screen-Agglomerate
• Construction Method: Mobile Field Conveyors
• Footprint: 300 ha
• Slope Angle: 2H:1V
Heap Leach Facility
Shovel and Truck Drill and Blast
Shovel – Komatsu PC8000-6
Truck – Komatsu 860E-1K
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RequiredNumber
Year
 Consistent Manufacturer  3 Passes
 Efficient Scheduling and
Repairing
 89% Truck Utilization
Benefits
Drills – Pit Viper 235
• 2 Drills at Full Production
Ramp Design
2 Lanes – 24 m at 8%1 Lane – 19 m at 10%
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1 Key Environmental Issues
• Water Pollution (spills, sediment loading, Acid Mine Drainage)
• Soil Erosion (de-vegetation, overburden stripping)
• Pollution (air, dust, noise)
2 Key Social Issues
• Negative bias against mining leads to public disapproval
• Conflict with local residents over fresh water use
• Changes to local economy and culture due to mine employment
3 Closure Strategy
• Pit: Re-sloping, clay or NPAG layer on pit floor, followed by pit flooding
• Waste Rock Dump: Re-grading and capillary barrier cover
• Heap Leach Facility: HLF rinse, re-grading and capillary barrier cover
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• Storage: 60.65 Mm3 (Main) + 15.59 Mm3 (Aux)
• Configuration: Side Hill Fill
• Construction Method: Free Dumping
• Footprint: 135 ha (Main) + 40 ha (Aux)
• Slope Angle: 2.5H:1V
• 86% Potentially Acid Generating
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Key Economic Parameters
• NPV: $470 Million (After-tax, discount rate of 10%)
• IRR: 32.5%
• Total Capital Expenditure: $356 Million
Cash Flow Components
NPV Sensitivity3
• Enter into a tax stability agreement with the Peruvian government
• Obtain local contractor estimates and quotes from suppliers
• Conduct leach tests on samples of ore to determine recovery and optimal
cyanide solution concentration
• Complete material characterization (PAG/NPAG, Geomechanical Data)
Results of PFS have shown the project is economically viable and operationally
feasible, so we recommend advancing the project to the next stage of study.
Au Price
Capex
Opex
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
70% 80% 90% 100% 110% 120% 130% 140%
NPV($1000)
Sensitivity - NPV
($200,000)
($100,000)
$0
$100,000
$200,000
$300,000
$400,000
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CashFlow($1000)
Cash Flow Components
Tax Sust capex Initial Capex Closure Opex Revenue