Urumalqui NI 43 101 Report

MQes
TECHNICAL REPORT
URUMALQUI PROPERTY
JULCÁN DISTRICT, DEPARTMENT OF LA LIBERTAD, PERU

LATITUDE 8O 05’ SOUTH BY LONGITUDE 78O 29’ WEST
Prepared by
Mine and Quarry Engineering Services, Inc.
For
ANDEANGOLD LTD.
and
GITENNES EXPLORATION, INC.
December 22, 2011

IMPORTANT NOTICE
This report was prepared as a National Instrument 43-101 Technical Report for AndeanGold Ltd. and Gitennes Exploration, Inc. by Mine and
Quarry Engineering Services, Inc. (MQes). The quality of information, conclusions and estimates contained herein is consistent with the level of
effort involved in MQes’ services, based on: i) information available at the time of preparation, ii) data supplied by outside sources, and iii) the
assumptions, conditions and qualifications set forth in this report. This report is intended to be used by AndeanGold Ltd. and Gitennes
Exploration, Inc., subject to the terms and conditions of its contract with MQes. This contract permits AndeanGold Ltd. and Gitennes
Exploration, Inc. to file this report as a Technical Report with Canadian Securities Regulatory Authorities pursuant to National Instrument 43-
101, Standards of Disclosure for Mineral Projects. Except for the purposes legislated under provincial securities law, any other use of this report
by any third party is at that party’s sole risk.
MQes
DATE and SIGNATURE PAGE
The undersigned prepared this Technical Report titled ‘Technical Report on the Urumalqui
Property, Department of La Libertad, Peru’ and dated December 22, 2011, in support of the
public disclosure of technical aspects for the Urumalqui Property by AndeanGold Ltd. and
Gitennes Exploration Inc. The format and content of the report are intended to conform to Form
43-101F1 of National Instrument 43-101 of the Canadian Securities Administrators.
Effective Date: November 8, 2011
Signed on December 22, 2011 by,
(Signed by C. Kaye) (Signed by J. A. McCrea)

(signed copy on file) (signed and sealed copy on file)
____________________________________ ____________________________________
Chris Kaye, FAusIMM, B. Eng Chemical James A. McCrea, P. Geo.
Principal Process Engineer Consulting Geologist
(Signed by J. Douglas Blanchflower)

(signed and sealed copy on file)
____________________________________
J. Douglas Blanchflower, P. Geo.
Consulting Geologist
MQes
CERTIFICATE OF QUALIFIED PERSON
Christopher Kaye, FAusIMM
1730 S. Amphlett Blvd., Suite 200,
San Mateo, CA 94402
I, Christopher Edward Kaye am a Principal Process Engineer, with the firm of Mine and Quarry
Engineering Services, Inc. (MQes) of 1730 S. Amphlett Blvd. Suite 200, San Mateo, CA 94402,
USA. I carried out this assignment for MQes;
 This certificate applies to the technical report entitled “Technical Report on the
Urumalqui Property, Julcan District, Department of La Libertad, Peru” dated 22
December, 2011;
 I am a Fellow of Australasian Institute of Mining and Metallurgy in Australia. I
graduated from the University of Queensland, Australia, with a B. Eng. in Chemical
Engineering in 1984;
 I have worked as a process engineer in the minerals industry for over 25 years. I have
been directly involved in the mining, exploration and evaluation of mineral properties
internationally for precious and base metals;
 I have not visited the Urumalqui Property site;
 I am responsible for the preparation of Sections 1.3.2, 1.4.3, 1.4.4, 13, 25.3 and 25.4.3 of
the “Technical Report on the Urumalqui Property, Julcan District, Department of La
Libertad, Peru” dated 22 December, 2011;
 I am independent of AndeanGold Ltd. and Gitennes Exploration, Inc. as independence is
described by Section 1.5 of NI 43-101. I have not received, nor do I expect to receive,
any interest, directly or indirectly, in AndeanGold Ltd. and Gitennes Exploration, Inc.;
 MQes was retained by AndeanGold Ltd. and Gitennes Exploration, Inc. to prepare a
resource estimate on the Urumalqui Property, Department of La Libertad, Peru in
accordance with National Instrument 43-101. The report is based on our review of project
files and information provided by AndeanGold Ltd. and Gitennes Exploration, Inc. and
discussions with company personnel;
 I have read National Instrument 43-101 and Form 43-101F1 and, by reason of education
and past relevant work experience, I fulfill the requirements to be a “Qualified Person”
for the purposes of NI 43-101. This technical report has been prepared in compliance
with National Instrument 43-101 and Form 43-101F1;
 As of the date of this certificate, to the best of my knowledge, information and belief, the
technical report contains all scientific and technical information that is required to be
disclosed to make the technical report not misleading.
Signed by Christopher Kaye
_______________________
Christopher Edward Kaye, FAusIMM
Dated: 22 December, 2011
MQes
James Albert McCrea, B.Sc, P.Geo (License # 21450)
306 – 10743 139 Street,
Surrey, British Columbia, Canada
I, James Albert McCrea am a Professional Geoscientist. I carried out this assignment for Mine
and Quarry Engineering Services, Inc. (MQes);
December, 2011;
 I am a Registered Professional Geoscientist (P. Geo.), Practising, with the Association of
Professional Engineers and Geoscientists of British Columbia. (Licence # 21450). I
graduated from the University of Alberta, Canada, with a B. Sc. in Geology in 1988;
 I have worked as a geoscientist in the minerals industry for over 22 years. I have been
directly involved in the mining, exploration and evaluation of mineral properties
 I visited the Urumalqui Property site from August 3, 2011 to August 4, 2011;
 I am responsible for the preparation of Sections 4,5,6,7,8,9,10 and 11 of the “Technical
Report on the Urumalqui Property, Julcan District, Department of La Libertad, Peru”
dated 22 December, 2011;
Signed By James A. McCrea
_______________________
James A. McCrea, B. Sc., P. Geo.
Licence # 21450
MQes
Douglas Blanchflower, P. Geo.
25856 – 28th Avenue,
Aldergrove, British Columbia, V4W 2Z8
I, Douglas Blanchflower am a Consulting Geologist and President, with the firm of Minorex
Consulting Ltd. of 25856 – 28th Avenue, Aldergrove, British Columbia, V4W 2Z8. I carried out
this assignment for MQes;
December, 2011;
 I am a Registered Professional Geoscientist in good standing with the Association of
Professional Engineers and Geoscientists of British Columbia (No. 19086) and the
Association of Professional Geoscientists of Ontario (No. 1913). I graduated from the
University of British Columbia, Canada, with a B. Sc. in Geology in 1971;
 I have worked as a Geologist in the minerals industry for over 40 years. I have been
directly involved in the mining, exploration and evaluation of mineral properties
 I have not visited the Urumalqui Property site;
 I am responsible for the preparation of all or portions of Sections 1 to 12 and 14 to 27 of
the “Technical Report on the Urumalqui Property, Julcan District, Department of La
Libertad, Peru” dated 22 December, 2011;
Signed By J. Douglas Blanchflower
_______________________
J. Douglas Blanchflower, P. Geo.
Consulting Geologist
MQes
TABLE OF CONTENTS
SECTION PAGE
1.0 SUMMARY .................................................................................................................... 1-1

1.1 Introduction and Background ...................................................................................... 1-1
1.1.1 Property Description and Ownership ....................................................................... 1-1
1.1.2 Accessibility and Local Conditions ......................................................................... 1-2
1.1.3 History...................................................................................................................... 1-3
1.2 Deposit Summary ........................................................................................................ 1-3
1.2.1 Geology and Mineralization .................................................................................... 1-3
1.2.2 Exploration Status .................................................................................................... 1-4
1.2.3 Mineral Processing and Metallurgical Testing ........................................................ 1-4
1.2.4 Mineral Resource Estimate ...................................................................................... 1-5
1.2.5 Environmental and Permitting ................................................................................. 1-7
1.3 Conclusions and Recommendations ............................................................................ 1-7
1.3.1 Mineral Resource Estimate ...................................................................................... 1-7
1.3.2 Mineral Processing and Metallurgical Testing ........................................................ 1-8
1.4 Risks and Opportunities ............................................................................................... 1-9
1.4.1 Mineral Resource Estimate Risks ............................................................................ 1-9
1.4.2 Mineral Resource Estimate Opportunities ............................................................... 1-9
1.4.3 Mineral Processing and Metallurgical Testing – Risks ......................................... 1-10
1.4.4 Mineral Processing and Metallurgical Testing - Opportunities ............................. 1-10
1.5 Proposed Exploration Budget .................................................................................... 1-10
2.0 INTRODUCTION.......................................................................................................... 2-1
2.1 Project and Issuer ......................................................................................................... 2-1
2.2 Site Visit ...................................................................................................................... 2-1
2.3 Principal Sources of Information ................................................................................. 2-1
2.4 Standard Terms and Abbreviations.............................................................................. 2-2
2.5 Acknowledgements ...................................................................................................... 2-4
3.0 RELIANCE ON OTHER EXPERTS .......................................................................... 3-1
4.0 PROPERTY DESCRIPTION AND LOCATION ...................................................... 4-1
4.1 Project Location and Description ................................................................................ 4-1
4.2 Property Ownership ..................................................................................................... 4-1
4.3 Mineral Rights in Peru ................................................................................................. 4-3
4.4 Surface and Water Rights ............................................................................................ 4-5
4.5 Environmental Regulations, Liabilities and Permitting Issues .................................... 4-5
5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND
PHYSIOGRAPHY ......................................................................................................... 5-1
5.1 Accessibility................................................................................................................. 5-1
5.2 Climate and Vegetation ............................................................................................... 5-1
5.3 Local Resources and Infrastructure ............................................................................. 5-1
5.4 Physiography ............................................................................................................... 5-1
6.0 HISTORY ....................................................................................................................... 6-1
6.1 Regional Mining History ............................................................................................. 6-1
6.2 Property Exploration and Mining History ................................................................... 6-1
7.0 GEOLOGICAL SETTING AND MINERALIZATION............................................ 7-1
7.1 Regional Geology ........................................................................................................ 7-1
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7.2 Property Geology ......................................................................................................... 7-2
7.2.1 Lithology .................................................................................................................. 7-2
7.2.2 Structure ................................................................................................................... 7-7
7.2.3 Alteration ................................................................................................................. 7-7
7.3 Mineralization .............................................................................................................. 7-7
8.0 DEPOSIT TYPES .......................................................................................................... 8-1
9.0 EXPLORATION ............................................................................................................ 9-1
9.1 Pre-2002 Exploration Work ......................................................................................... 9-1
9.2 2002 to 2009 Exploration Work .................................................................................. 9-1
9.3 2010 and 2011 Exploration Work ................................................................................ 9-3
9.3.1 Summary of 2011 Exploration Results .................................................................... 9-4
10.0 DRILLING ................................................................................................................... 10-1
10.1 Drilling 2003 - 2009 .................................................................................................. 10-1
10.2 Diamond Drilling 2011 .............................................................................................. 10-3
10.3 Drilling Conclusions and Recommendations ............................................................ 10-4
10.4 Risks and Opportunities ............................................................................................. 10-4
11.0 SAMPLE PREPARATION, ANALYSES AND SECURITY .................................. 11-1
11.1 2003 – 2009 Exploration Work ................................................................................. 11-1
11.1.1 2003 – 2009 Sample Preparation ....................................................................... 11-1
11.1.2 2003 – 2009 Sample Analyses and Assays ........................................................ 11-1
11.1.3 2003 – 2009 Sample Security ............................................................................ 11-2
11.2 2011 Diamond Drilling Program ............................................................................... 11-2
11.2.1 2011 Sample Preparation ................................................................................... 11-2
11.2.2 2011 Sample Analyses and Assays .................................................................... 11-3
11.2.3 2011 Sample Security ........................................................................................ 11-3
12.0 DATA VERIFICATION ............................................................................................. 12-1
12.1 Electronic Database Verification ............................................................................... 12-1
12.2 Quality Assurance/Quality Control Procedures and Results ..................................... 12-1
12.2.1 2011 Standard Reference Material..................................................................... 12-1
12.2.2 2011 Blank Material .......................................................................................... 12-5
12.2.3 2011 Field Duplicates ........................................................................................ 12-6
12.2.4 2011 Check Assays .......................................................................................... 12-10
12.2.5 2003 and 2004 Drilling Programs by Gitennes Exploration ............................ 12-11
12.2.6 2008 Drilling Program by Gitennes Exploration ............................................. 12-18
12.3 2011 Drilling Program by AndeanGold................................................................... 12-24
12.4 Independent Site Visit and Verification Sampling .................................................. 12-28
12.5 Conclusions and Recommendations ........................................................................ 12-29
13.0 MINERAL PROCESSING AND METALLURGICAL TESTING........................ 13-1
13.1 Introduction ................................................................................................................ 13-1
13.2 Metallurgical Testing ................................................................................................. 13-1
13.2.1 Test Work ASA 2661 – Alex Stewart [Assayers] del Perú S.R.L. .................... 13-1
13.2.4 Memo – Prueba de Flotacion – Alex Jaramillo Rosales .................................... 13-4
13.2.5 Test Work No. 7188 – Labotatorio Plenge ........................................................ 13-4
13.3 Mineral Processing .................................................................................................... 13-4
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14.0 MINERAL RESOURCE ESTIMATES..................................................................... 14-1
14.1 Introduction ................................................................................................................ 14-1
14.2 Drilling and Assay Database...................................................................................... 14-1
14.3 Sample Compositing .................................................................................................. 14-2
14.4 Grade Shell Calculations ........................................................................................... 14-2
14.5 Rock Code Determination ......................................................................................... 14-4
14.6 Three Dimensional Solid Modelling.......................................................................... 14-4
14.7 Topographic Control .................................................................................................. 14-6
14.8 Bulk Density Estimation ............................................................................................ 14-6
14.9 Grade Capping ........................................................................................................... 14-7
14.10 Semi-Variogram Analysis ...................................................................................... 14-9
14.11 Block Model........................................................................................................... 14-9
14.12 Interpolation ......................................................................................................... 14-10
14.13 Interpolation Validation ....................................................................................... 14-12
14.14 Mineral Resource Classification .......................................................................... 14-12
14.15 Mineral Resource Estimate .................................................................................. 14-13
14.16 Mineral Resource Estimate Validation ................................................................ 14-14
23.0 ADJACENT PROPERTIES ....................................................................................... 23-1
24.0 OTHER RELEVANT DATA AND INFORMATION ............................................. 24-1
25.0 INTERPRETATIONS AND CONCLUSIONS ......................................................... 25-1
25.1 Geology ...................................................................................................................... 25-1
25.2 Mineral Resource Estimate ........................................................................................ 25-1
25.3 Mineral Processing and Metallurgical Testing .......................................................... 25-2
25.4 Risks and Opportunities ............................................................................................. 25-3
25.4.1 Data Collection and QA/QC Procedures ........................................................... 25-3
25.4.2 Mineral Resource Estimate - Risks .................................................................... 25-3
25.4.3 Mineral Resource Estimate - Opportunities ....................................................... 25-4
25.4.4 Mineral Processing and Metallurgical Testing - Risks ...................................... 25-4
25.4.5 Mineral Processing and Metallurgical Testing - Opportunities ......................... 25-4
25.4.6 Environmental Impact and Permitting ............................................................... 25-5
26.0 RECOMMENDATIONS ............................................................................................. 26-1
26.1 Proposed Exploration Budget .................................................................................... 26-1
27.0 REFERENCES............................................................................................................. 27-1
Appendix 1 – Mineral Concession Documents

Appendix 2 – Sample Preparation and Analytical Procedures
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LIST OF TABLES
TABLE PAGE
Table 1-1: Inferred Mineral Resource Estimate........................................................................... 1-6

Table 1-2: Proposed 2012 Exploration Budget .......................................................................... 1-11
Table 2-1: Standard Terms and Abbreviations ............................................................................ 2-2
Table 4-1: Mineral Concession Information (after Blackwell, 2009)......................................... 4-1
Table 10-1: 2003 to 2009 Diamond Drilling Data (after Blackwell, 2009)............................... 10-2
Table 10-2: 2011 Diamond Drilling Data .................................................................................. 10-3
Table 12-1: 2011 SRM Samples ................................................................................................ 12-2
Table 13-1: Assay Head Grades – Composites (A) and (B) ...................................................... 13-2
Table 13-2: Material Used in Preparation of Composite A ....................................................... 13-2
Table 13-3: Material Used in Preparation of Composite B ....................................................... 13-2
Table 13-4: Material Used in Preparation of Composite (B) Roca Caja ................................... 13-3
Table 14-1: Assay Sample Data for AgEQ60 Assay Domain Solid .......................................... 14-7
Table 14-2: Block Model Parameters ........................................................................................ 14-9
Table 14-3: Interpolation Data for Three Assay Domain Solids ............................................. 14-11
Table 14-4: Summary of ‘One Out’ Cross Validation Results ................................................ 14-12
Table 14-5: Inferred Mineral Resource Estimate..................................................................... 14-13
Table 25-1: Inferred Mineral Resources Estimated at Various Silver Cut-off Grades .............. 25-1
Table 26-1: Proposed 2012 Exploration Budget ........................................................................ 26-2
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LIST OF FIGURES
FIGURE PAGE
Figure 4-1: Location Map ............................................................................................................ 4-2

Figure 4-2: Mineral Concession Map .......................................................................................... 4-4
Figure 7-1: Regional Geology Map (After Servicio de Geologia Y Mineria, 1980) ................... 7-2
Figure 7-2: Sample 1243, 52.25 to 53.80 m, PGUR-06 .............................................................. 7-4
Figure 7-5: Property Geology Map .............................................................................................. 7-6
Figure 7-6: View of the Urumalqui Vein on Surface Looking Northwestward. ......................... 7-8
Figure 7-7: Collecting Verification Sample from the Urumalqui Vein ..................................... 7-13
Figure 7-8: View of the Urumalqui Vein Structure #1 .............................................................. 7-13
Figure 7-9: View of Urumalqui Vein Structure #2 .................................................................... 7-14
Figure 8-1: Schematic Cross-Section of the Epithermal Deposit Model ..................................... 8-2
Figure 9-1: DE710 Sandvik Diamond Drilling Rig and Drilling Personnel ................................ 9-4
Figure 9-2: View of the Cemented Collar for DDH URU 03-02. ............................................... 9-5
Figure 9-3: View of the Cemented Collar for DDH PGUR 30 and 31 ........................................ 9-5
Figure 9-4: Drill Core Storage Building for the Urumalqui Project ............................................ 9-6
Figure 10-1: Diamond Drill Hole Plan – Urumalqui Vein Structure......................................... 10-5
Figure 10-2: Vertical Cross Section 1250 NW .......................................................................... 10-6
Figure 12-1: Standard PM436 – Au ppm Assay Results .......................................................... 12-3
Figure 12-2: Standard PM1129 – Au ppm Assay Results ........................................................ 12-3
Figure 12-3: Standard PM1129 – Ag ppm Assay Results ........................................................ 12-4
Figure 12-4: Standard PM1138 – Au ppm Assay Results ........................................................ 12-4
Figure 12-5: Standard PM1138 – Ag ppm Assay Results ........................................................ 12-5
Figure 12-6: Blank Materials – Au ppm Assay Results ........................................................... 12-5
Figure 12-7: Blank Materials – Ag ppm Assay Results ........................................................... 12-6
Figure 12-8: Field Duplicate Samples – Au ppm Scatter Plot ................................................... 12-7
Figure 12-9: Field Duplicate Samples – Ag ppm Scatter Plot ................................................... 12-7
Figure 12-10: Field Duplicate Samples – Au ppm Difference Chart ........................................ 12-8
Figure 12-11: Field Duplicate Samples – Ag ppm Difference Chart ........................................ 12-8
Figure 12-12: Thompson-Howarth Precision for Field Duplicates - Au ppm ........................... 12-9
Figure 12-13: Thompson-Howarth Precision for Field Duplicates - Ag ppm ........................... 12-9
Figure 12-14: Thompson-Howarth Duplicate Analysis for Field Duplicates - Au ppm ......... 12-10
Figure 12-15: Thompson-Howarth Duplicate Analysis for Field Duplicates - Ag ppm ......... 12-10
Figure 12-16: 2003/04 Pulp Duplicates ALS vs. CIMM – Au ppm Scatter Plot .................... 12-11
Figure 12-17: 2003/04 Pulp Duplicates ALS vs. CIMM – Ag ppm Scatter Plot .................... 12-11
Figure 12-18: 2003/04 Pulp Duplicates ALS vs. SGS – Au ppm Scatter Plot ........................ 12-12
Figure 12-19: 2003/04 Pulp Duplicates ALS vs. SGS – Ag ppm Scatter Plot ........................ 12-12
Figure 12-20: 2003/04 Pulp Duplicates ALS vs. CIMM – Au ppm Difference Chart ............ 12-13
Figure 12-21: 2003/04 Pulp Duplicates ALS vs. CIMM – Ag ppm Difference Chart ............ 12-13
Figure 12-22: 2003/04 Pulp Duplicates ALS vs. SGS – Au ppm Difference Chart ................ 12-14
Figure 12-23: 2003/04 Pulp Duplicates ALS vs. SGS – Ag ppm Difference Chart ................ 12-14
Figure 12-24: T-H Precision for 2003/04 Pulp Duplicates ALS vs. CIMM - Au ppm ........... 12-15
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Figure 12-25: T-H Precision for 2003/04 Pulp Duplicates ALS vs. CIMM - Ag ppm ........... 12-15
Figure 12-26: T-H Precision for 2003/04 Pulp Duplicates ALS vs. SGS - Au ppm ............... 12-16
Figure 12-27: T-H Precision for 2003/04 Pulp Duplicates ALS vs. SGS - Ag ppm ............... 12-16
Figure 12-28: T-H Duplicate Analysis for 2003/04 Pulp Duplicates ALS vs. CIMM – Au ppm12-
17
Figure 12-29: T-H Duplicate Analysis for 2003/04 Pulp Duplicates ALS vs. CIMM - Ag ppm 12-
17
Figure 12-30: T-H Duplicate Analysis for 2003/04 Pulp Duplicates ALS vs. SGS - Au ppm 12-18
Figure 12-31: T-H Duplicate Analysis for 2003/04 Pulp Duplicates ALS vs. SGS - Ag ppm 12-18
Figure 12-32: Scatter Plot for 2008 Pulp Duplicates ALS vs. CIMM – Au ppm .................... 12-19
Figure 12-33: Scatter Plot for 2008 Pulp Duplicates ALS vs. CIMM – Ag ppm .................... 12-19
Figure 12-34: Scatter Plot for 2008 Pulp Duplicates ALS vs. SGS – Au ppm ....................... 12-20
Figure 12-35: Scatter plot for 2008 Pulp Duplicates ALS vs. SGS – Ag ppm ........................ 12-20
Figure 12-36: Difference Chart for 2008 Pulp Duplicates ALS vs. CIMM – Au ppm ........... 12-21
Figure 12-37: Difference Chart for 2008 Pulp Duplicates ALS vs. CIMM – Ag ppm ........... 12-21
Figure 12-38: Difference Chart for 2008 Pulp Duplicates ALS vs. SGS – Au ppm ............... 12-22
Figure 12-39: Difference Chart for 2008 Pulp Duplicates ALS vs. SGS – Ag ppm ............... 12-22
Figure 12-40: T-H Precision for 2008 Pulp Duplicates ALS vs. SGS - Au ppm .................... 12-23
Figure 12-41: T-H Precision for 2008 Pulp Duplicates ALS vs. SGS - Ag ppm .................... 12-23
Figure 12-42: T-H Duplicate Analysis for 2008 Pulp Duplicates ALS vs. SGS - Au ppm .... 12-24
Figure 12-43: Thompson-Howarth Duplicate Analysis for 2008 Pulp Duplicates ALS vs. SGS -
Ag ppm..................................................................................................................................... 12-24
Figure 12-44: Scatter Plot of 2011 Pulp Duplicates Inspectorate vs. ALS – Au ppm............. 12-25
Figure 12-45: Scatter Plot of 2011 Pulp Duplicates Inspectorate vs. ALS – Ag ppm............. 12-25
Figure 12-46: Difference Chart for 2011 Pulp Duplicates Inspectorate vs. ALS – Au ppm ... 12-26
Figure 12-47: Difference Chart for 2011 Pulp Duplicates Inspectorate vs. ALS – Ag ppm ... 12-26
Figure 12-48: T-H Precision for 2011 Pulp Duplicates Inspectorate vs. ALS SGS - Au ppm 12-27
Figure 12-49: T-H Precision for 2011 Pulp Duplicates Inspectorate vs. ALS SGS - Ag ppm 12-27
Figure 12-50: T-H Duplicate Analysis for 2011 Pulp Duplicates Inspectorate vs. ALS SGS – Au
ppm .......................................................................................................................................... 12-28
Figure 12-51: T-H Duplicate Analysis for 2011 Pulp Duplicates Inspectorate vs. ALS SGS – Ag
ppm .......................................................................................................................................... 12-28
Figure 14-1: Histogram of 475 Uncapped Silver Assays In AgEQ60 Assay Domain Solid ..... 14-3
Figure 14-2: Histogram of 475 Uncapped Gold Assays In AgEQ60 Assay Domain Solid ...... 14-3
Figure 14-3: View of AgEQ60 Assay Domain Solid Looking Northward ............................... 14-5
Figure 14-4: View of AgEQ60 Assay Domain Looking Northwestward.................................. 14-5
Figure 14-5: Cumulative Probability Plot of Silver Values Within Assay Domain Solid......... 14-8
Figure 14-6: Cumulative Probability of Gold Values Within Assay Domain Solid.................. 14-8
Figure 14-7: Histogram Plot of Capped Silver Composites .................................................... 14-10
Figure 14-8: Cumulative Probability Plot of Capped Silver Composites ................................ 14-11
Figure 14-9: Plot of Silver Composite Grade, Silver Block Grade and Tonnage.................... 14-15
Figure 14-10: Plot of Number of Silver Composite Samples Versus Tonnage ....................... 14-15
Figure 14-11: Plot of Tonnage Versus Resource Classification .............................................. 14-16
Figure 14-12: Plot of Silver Composite Grade, Silver Block Grade and Tonnage.................. 14-17
Figure 14-13: Plot of Number of Silver Composite Samples Versus Tonnage ....................... 14-18
Figure 14-14: Plot of Tonnage Versus Resource Classification .............................................. 14-18
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SECTION 1
SUMMARY
1.0 SUMMARY
1.1 Introduction and Background
The Urumalqui property (the ‘Property’) is situated in the District of Julcán, Department of
Libertad in northcentral Peru. It is comprised of four contiguous mineral concessions that are
currently owned by Minera Corimalqui S.A. (‘Corimalqui’), an indirect Peruvian subsidiary of
Gitennes Exploration Inc. (‘Gitennes’) which is a TSX Venture Exchange reporting public
company. On April 22, 2010, AndeanGold Ltd. (‘AndeanGold’), a TSX Venture Exchange
reporting public company, entered into an Option Agreement with Gitennes whereby
AndeanGold has the right to acquire a 60% joint venture interest in the Property. PeruGold
Resources S.A.C. ("PeruGold"), an indirect Peruvian subsidiary of AndeanGold, has carried out
the exploration work on behalf of AndeanGold since April 2010.
The Urumalqui vein is the principal vein of eight known veins currently identified on the
Property. It crops out in a northwesterly direction for approximately 1,500 metres. Exploration
drilling on the Urumalqui vein has been carried out on relatively widely-spaced sections, from 45
to over 100 metres apart, concentrating on the central and southeastern segments of the
Urumalqui vein, which cover 1,000 metres of the 1,500 metres vein outcrop. Between March
and July, 2011 AndeanGold completed a 31-hole (5,071 metres) infill drilling program to a depth
of 200 metres so as to provide a drill spacing of approximately 50 metres along the central and
southeastern segments. Drill core logging, analyses and drill site reclamation work were later
finalized in August 2011. Following this work, Mine and Quarry Engineering Services, Inc. was
retained by AndeanGold and Gitennes to prepare a NI 43-101 compliant estimate of the mineral
resources within the drill-tested portion Urumalqui vein structure. This report documents the
mineral resource estimate and supporting technical data.
This Technical Report has been prepared by Mr. C. Kaye, FAusIMM, B. Eng Chemical, of Mine
and Quarry Engineering Services, Inc (‘MQes’), Mr. James A. McCrea, P. Geo. And Mr. J.
Douglas Blanchflower, P. Geo., of Minorex Consulting Ltd. (‘Minorex’), for AndeanGold and
Gitennes in compliance with the disclosure requirements of the Canadian National Instrument
43-101.
1.1.1 Property Description and Ownership
The Urumalqui property is located about 70 kilometres by road east of the coastal city of
Trujillo within the District of Julcán, Department of La Libertad, Peru. The approximate
geographic centre of the P r o p e r t y is at 8° 05’ South latitude, 78° 29’ West longitude, or
UTM PSAD56, Datum 17S at 777500 m East by 9105150 m North.
The Property is comprised of four mineral concessions, namely: Aurea Elisa 13, Morochas,
Patientia and Philtrum, that cover a total of 2,700 hectares or 6,672 acres. The Property is
owned by Minera Corimalqui S.A. On April 22, 2010 AndeanGold entered into an Option
Agreement with Gitennes that provides AndeanGold the right to acquire a 60% joint venture
interest in the Property. In order to earn its 60% interest, AndeanGold must:
1-1 MQes
 Ensure that PeruGold expends CDN$3 million of qualifying expenditures on the Project
over a four (4) year term (the ‘Term’), commencing July 8, 2010;
 Ensure that PeruGold completes 3,000 metres of drilling by the end of the second year of
the Term and 7,000 metres of cumulative drilling by the end of the third year of the
Term; and
 Issue Gitennes 20,000 common shares of AndeanGold as well as 20,000 common shares
on each of the first, second and third year anniversaries of the agreements. Except for the
first payment, Gitennes may elect to receive cash in lieu of shares, with the cash amounts
not to exceed CDN$25,000, CDN$50,000 and CDN$100,000, respectively, with respect
to the first, second and third year anniversary date payments. If the market value of the
shares on the respective payment date exceeds the maximum cash payment amount on
such date, the difference will be satisfied by the issuance of equivalent shares.
Upon AndeanGold exercising its Option, Corimalqui will transfer the titles to the subject mineral
concessions to Newco, a joint venture Peruvian company to be owned by PeruGold (60%
shareholder interest) and Corimalqui (40% shareholder interest). PeruGold would be the
operator of the joint venture.
PeruGold has agreements in place with individual land owners to provide access to the lands for
drilling purposes in exchange for a modest fee. Most of these agreements also include a clause
whereby PeruGold would have the option to purchase the land in question after a certain
period of time has elapsed. Adequate surface water is available for exploration purposes but
advanced development work would require negotiations with the affected land owners, the
discovery of additional adequate water resources and permitting from governmental agencies.
1.1.2 Accessibility and Local Conditions
The Property is readily accessible by vehicle from the coastal city of Turjillo, the nearest urban
and major commercial centre to the Property. Trujillo has regular daily 1-hour commercial
flights from the capital city of Lima which is 480 kilometres to the south. A paved and hard-
packed gravel road joins Trujillo with the village of Julcán to the east and hence by unimproved
gravel roads to the Property. The total driving time is approximately 2 to 3 hours.
The Property is situated within the Pacific Ocean watershed of the Cordillera Occidental, part of
the Andes Mountains. Elevations within the Property range from 3,400 to 3,700 metres A.M.S.L.
with locally moderate relief. The climate is typical of the western portion of the Andes
Mountains with a rainy season from November to March and a dry season from April to October.
Mineral exploration may be carried out year-round but best done during the dry season.
There is an electrical transmission line to Julcán and the local villages adjacent to the Property
receive both electricity and cellular telephone service. Furthermore, labour and supplies for
exploration work are readily available from both Trujillo and the local villages that have long
mining histories.
1-2 MQes
Except for eucalyptus plantations, there is little standing timber. Most trees have been cleared
centuries ago for sheep and cattle grazing and/or various potato, tuber and grain farming by
individual land owners.
1.1.3 History
The original exploration of the Urumalqui property area, including old adits and pits, may date
back to the late 1800th century when mineralization was first reported at the nearby Quiruvilca
mine site in 1789. During the 1980’s an exploration shaft was sunk on the central portion of the
Urumalqui vein and drifting was carried out on the 28-metre level, with a 250-metre drift on the
50-metre level and a winze to the 80 metre level. In 1996, Cambior del Peru S.A. completed
five widely-spaced drill holes on four vein structures within the Property.
During the period of 2003 to 2008 Oromalqui Gold Corp, a company that was indirectly owned
equally by Meridian Gold Corp and Gitennes and later Corimalqui, on behalf of Gitennes,
carried out various exploration programs that included: preparing topographic base maps,
detailed geological mapping of the vein structures, property-wide geological mapping,
establishing a picketed survey control grid, B-horizon soil geochemical sampling, two ground
induced polarization and magnetics geophysical surveys, three differential GPS surveys of the
grid and drill pads, rock geochemical sampling, three diamond drilling campaigns totalling 47
holes, limited rehabilitation of the old exploration shaft, metallurgical testing of drill core and
rock samples, and environmental, archaeological and socioeconomic studies.
1.2 Deposit Summary
1.2.1 Geology and Mineralization
The local stratigraphy is dominated by rocks of the Cretaceous- to Tertiary-age Calipuy Group.
This major stratigraphic unit overlies the pre-Cretaceous basement rocks as a relatively flat-
lying, unconformable plate up to 1,500 metres in thickness that caps landforms in excess of
3,200 metres. The group is comprised of subaerial andesitic flows, breccia and pyroclastic tuffs,
with subordinate dacite and rhyodacite. These rocks are broadly warped and often transected by
northerly, northeasterly and easterly fault structures. Within the Property there is a possible
volcanic source that may be one of the youngest in the region at 16.7 Ma.
Volcanic rocks of the Calipuy Group underlie the Property. These rocks include green to
maroon, variably magnetic, porphyritic andesitic flows with plagioclase phenocrysts, volcanic
glass and hornblende, interbedded with volcaniclastic rocks and brecciated andesitic lavas.
These rocks are cut by a series of northwest-southeast, northeast-southwest and east-west
trending, normal faults showing evidence of sinistral strike-slip movement within a major,
regional northerly trending lineament (Blackwell, 2009).
The precious metal-bearing mineralization is typical of a ‘low sulphidation’ epithermal style

mineral deposit. There are two common vein orientations, a northwest-southeast set including
the Urumalqui, La Mariscala West, La Mariscala South, and Penélope veins, and an east-west set
including the La Mariscala East, Candual East, Candual West and Candual veins.
1-3 MQes
The Urumalqui vein has received most of the exploration work. In plan, it has a shallow arcuate
shape, convex to the west, with a northwesterly trend (approximately 305o). In addition, the vein
dips sub-vertically to -70o southwesterly; is up to 20 metres wide; is comprised one or two
crustiform-banded quartz veins ranging from 0.5 to 11 metres in aggregate thickness; and crops
out over a strike length of 1,500 metres. There are a number of intersecting, perhaps conjugate,
faults that have locally displaced the vein into segments ranging in length from 40 to 400 metres.
The vein mineralogy includes crustiform and chalcedonic quartz with minor adularia. Native
gold, electrum and silver-bearing argentite are genetically and spatially associated with fine-
grained pyrite (Blackwell, 2009).
1.2.2 Exploration Status
The Property has received detailed and property-wide geological mapping, soil and rock
geochemical sampling, two ground induced polarization and magnetics geophysical surveys and
a variety of differential GPS surveys of topographic and drill hole collars. In addition, 78
diamond drill holes, totalling 12,578.69 metres, have now tested the known vein mineralization
of which 66 holes, totalling 10,906 metres, have been completed along the main Urumalqui vein
structure.
Exploration results to date indicate that the Urumalqui vein appears to be the dominant vein
structure of the eight known veins on the Property. The Urumalqui vein has now been tested by
NQ- and HQ-size diamond drilling along a strike length of approximately 1,500 metres. Most of
this drilling has intersected the vein between 70 and 150 metres downdip from its surface
exposure but a few holes have penetrated the vein more than 200 metres vertically. There is still
good vein continuity both in width and grade in the deepest vein intercepts. All of this drilling
has been carried out on relatively widely-spaced sections 45 to 100 metres apart. Detailed in-fill
drilling along the central and southeastern segment, the higher grade portion of the vein
structure, would improve the interpretation of its local variance in tenor and intermittent
displacements due to intersecting normal faulting.
Drilling results indicate that the Urumalqui vein is open for extension both northwesterly and
especially southeasterly. Furthermore, its strong continuity at depth coupled with the textural
features of the vein mineralogy indicates that it may have significant untested depth potential.
1.2.3 Mineral Processing and Metallurgical Testing
Metallurgical development of the Urumalqui project to date has been conducted by Gitennes;
prior to 2009. AndeanGold did not conduct any metallurgical tests in connection with its 2011
infill drill program. The metallurgical development has involved preliminary test work
assessing:
 Flotation.
 Flotation plus cyanidation of concentrate.
 Gravity separation.
 Gravity Separation followed by flotation of gravity tails.
1-4 MQes
 Gravity separation followed by cyanidation of gravity tails.
The results to date indicate that material from Urumalqui is likely to be amenable to treatment by
either flotation or cyanidation. Gravity concentration appears to improve recoveries of both
silver and gold. Further metallurgical testwork is required to determine metallurgical processing
criteria and subsequently identify the economic processing route.
Sample selection for metallurgical test work to date is not well documented and the
representation of samples to the entire deposit is not known. It is recommended QA/QC is
improved for future preparation of metallurgical composites. Sample collection for future
metallurgical test work needs to consider rock type, lithology, grade variations and spatial
distribution. A metallurgical sampling program needs to be developed with the objective of
developing a geo-metallurgical model for the project.
Ongoing metallurgical test work should include mineralogical analysis in order to give direction
to grinding requirements, expected recoveries and preferred processing route. Comminution test
work such as Bond Work index, crusher index and abrasion index should also be included in
future test work programs.
Tests results using gravity concentration and then cyanidation of the gravity tails indicates higher
recoveries for silver and gold than gravity concentration followed by flotation. Cyanide
consumption, however, was high. It is recommended metallurgical investigations are pursued
that include the optimization of the processing route using gravity concentration followed by
cyanidation of the gravity tailings.
1.2.4 Mineral Resource Estimate
The Urumalqui vein structure has been explored by 66 of the 78 diamond drill holes of which 35
holes were drilled by Corimalqui and 31 holes by PeruGold. This work has resulted in a drilling
and assay database that includes multi-element analyses for 3,556 drill hole samples situated
along a 1,500-metre section of the Urumalqui vein structure.
A silver equivalent (‘AgEQ’) grade was only used when modelling the assay domains such that
they incorporated both silver and gold values encountered within the Urumalqui Vein structure.
The silver equivalent grade for each drill hole sample was a calculated combination of its gold
value at a 3-year trailing average price of US$1,300/troy oz and 85% metallurgical recovery rate,
and its silver value at a 3-year trailing average price of US$26/troy oz and 65% metallurgical
recovery rate. Once the silver equivalent grades had been calculated one metre, equal length
assay composites were calculated from the collar to the terminus of each drill hole intersecting
the Urumalqui vein structure.
Polylines were plotted on SW-NE oriented vertical sections (parallel to the bearing of most of
the exploration drill holes) spaced at 50-metre intervals to define the greater than or equal to 60
gpt AgEQ assay boundary for the vein mineralization while maintaining zonal continuity along
strike and downdip. One geometric solid was formed reflecting the three dimensional
boundaries of an assay grade domain called ‘AgEQ60’.
1-5 MQes
Using the constructed AgEQ60 domain solid as a constraint, statistical analyses were carried out
on the assay samples and grade capping levels were determined at 8.60 gpt for gold and 850 gpt
for silver. Once the raw assay data had been capped accordingly, 1 metre composites were re-
calculated for block model grade interpolation.
Following a preliminary interpolation run the one AgEQ60 assay domain was subdivided into
three distinct structurally unique parts to more accurately reflect the vein mineralization that has
a southeast-northwest trending, convex westward ‘bow’ shape in plan. Thus, the single assay
domain solid was subdivided into: a southeastern portion (Domain 1, Rock Code 15) that extends
from vertical section 1000NW to 1500NW with an average apparent strike of 318o and apparent
dip of -90o; a central portion (Domain 2, Rock Code 25) that extends from vertical section
1500NW to 2050NW with an average apparent strike of 325o and apparent dip of -75o SE; and a
northwestern portion (Domain 3, Rock Code 35) that extends from vertical section 2050NW to
2650NW with an average apparent strike of 338o and apparent dip of -90o.
The Urumalqui block model was created with 5 metre by 5 metre by 5 metre blocks for 400
columns, 350 rows and 90 levels, it was not rotated, and it was coded to partial blocks with a 1%
threshold. An Inverse Distance Squared procedure was used to interpolate grades for gold and
silver, and a bulk density of 2.37 tonnes/m3 was used for tonnage calculations of all mineralized
vein material.
Mineral resources were estimated individually for each part of the Urumalqui assay domain and
then combined for tonnage and grades estimates at various cut-off grades. The reporting cut-off
grade of 90gpt silver was based upon reported incremental cut-off grades for similar gold-silver
vein deposits in Peru.
All of the mineral resources have been classified as ‘Inferred’. This classification may be
upgraded with the results of future in-fill drilling, detailed surface channel sampling, resolution
of outstanding QA/QC issues, and a thorough geological and structural analysis of all exploration
results to date.
The estimated undiluted and inferred mineral resources of the Urumalqui vein structure at
various silver cut-off grades are shown in Table 1-1.
Table 1-1: Inferred Mineral Resource Estimate
Cut-Off Tonnes Gold Gold Silver Silver

Ag (gpt) (000’s) Grade (gpt) (000’s oz) Grade (gpt) (000’s oz)
180.00 809 1.60 41.6 227.31 5,915
120.00 1,535 1.513 74.7 188.47 9,299
90.00 1,945 1.378 86.2 171.01 10,692
60.00 2,147 1.340 92.5 162.15 11,192
30.00 2,215 1.319 93.9 158.49 11,285
1-6 MQes
1. An Inferred Mineral Resource is that part of a Mineral Resource for which quantity
and grade or quality can be estimated on the basis of geological evidence and limited
sampling and reasonably assumed, but not verified, geological and grade continuity. The
estimate is based on limited information and sampling gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings and drill holes. Due
to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be
assumed that all or any part of an Inferred Mineral Resource will be upgraded to an
Indicated or Measured Mineral Resource as a result of continued exploration.
2. Mineral resources, which are not mineral reserves, do not have demonstrated
economic viability. The estimate of mineral resources may be materially affected by
environmental, permitting, legal, title, socio-political, marketing, or other relevant issues.
There is no guarantee that AndeanGold or Gitennes will be successful in obtaining any
or all of the requisite consents, permits or approvals, regulatory or otherwise for the
project or that the project will be placed into production.
1.2.5 Environmental and Permitting
During its 2002 to 2010 operatorship, Corimalqui held Category C exploration permits that
required two environmental evaluations. In addition, Corimalqui committed to reclamation and
re-vegetation of all surface disturbances, safe disposal of all dangerous waste generated during
their exploration work and maintaining good community relations.
Since assuming operatorship of the project PeruGold and AndeanGold have secured all
necessary permits to continue advanced exploration work and retained a community relations
consultant, Mr. Roberto Condezo of SCA Consultores to maintain regular contact with the local
landowners, address any of their concerns and advise the companies on continued good
community relations.
1.3 Conclusions and Recommendations
Conclusions and recommendations for the Urumalqui resource estimate presented in this report
include the following.
1.3.1 Mineral Resource Estimate
It is estimated that the currently explored portion of the Urumalqui vein structure hosts undiluted
and inferred mineral resources of 1.945 million tonnes grading 1.378 gpt gold and 171.01 gpt
silver at a cut-off grade of 90 gpt silver.
It is recommended that:
 Detailed infill drilling should be carried out midway between drill sections that are
currently spaced 45 to 100 metres apart. Such infill drilling would provide necessary
geological and structural information to better interpret the vein geometry and grade
continuity.
1-7 MQes
 Detailed surface bedrock channel samples should be collected at 25 metres intervals
along the exposed sections of the vein structure. These samples should be well surveyed,
documented and of similar volumes to be of equivalent quality to diamond drilling
samples. The geological and grade information from such detailed sampling work may
then be used to confirm the near-surface vein geometry and grade continuity for more
definitive mineral resource classification.
 Re-sampling and/or re-assaying of unresolved QA/QC samples must be undertaken to
confirm the grades of drill samples that were batch assayed with standard reference
material returning suspiciously erratic grades. Future sampling work, be it drilling,
surface or underground sampling, should be conducted in conjunction with an industry
standard, closely supervised and monitored QA/QC program with frequent, third-party
check assaying.
 A complete and thorough re-interpretation of the geological and structural setting of the
Urumalqui vein structure should be undertaken to better understand the vein geometry
within sections of apparent structural displacements.
1.3.2 Mineral Processing and Metallurgical Testing
Metallurgical test work performed to date on the Urumalqui project is preliminary. Additional
metallurgical test work is required to better define the preferred processing flowsheet and
subsequently optimize the criteria for this flowsheet.
The representativity of samples used in metallurgical test work performed to date is not
identified. It is recommended sample collection for future metallurgical test work considers rock
type, lithology, grade variations and spatial distribution. A metallurgical sampling program
needs to be developed with the objective of developing a geo-metallurgical model for the project.
It is recommended a QA/QC program is included as part of this sampling program.
No mineralogical analysis relevant to optimizing metallurgical treatment has been performed to

date. This analysis can give direction to grinding requirements, expected recoveries and
preferred processing route. It is recommended mineralogical analyses are performed on
representative samples.
Communition test work such as Bond Work index, crusher index and abrasion index has not
been addressed to date. It is recommended this is included in future metallurgical test work
programs.
Flotation test work results indicate gold and silver can be recovered to a concentrate. Evaluation
of primary grind size, reagent scheme and assessment of regrinding needs performing to
optimize metallurgical responses.
Bottle roll tests on material with crush sizes of 1/2 inch, 1/4 inch and 1/8 inch indicate that after
72 hours of leaching, good gold recoveries but modest silver recoveries are realized. Cyanide
consumptions were reasonable. Optimization of crush size and leach time may improve silver
recoveries, however, test work assessing crushing/grinding followed by downstream processing
are recommended in preference to assessing a heap leach processing route.
1-8 MQes
Test results on cyanidation of concentrates have resulted in high recoveries of gold and silver.
consumption, however, was high. It is recommended metallurgical investigations are pursued to
optimize the processing route using gravity concentration followed by cyanidation of the gravity
tailings.
1.4 Risks and Opportunities
Risks and Opportunities associated with the Urumalqui project presented in this report include
the following.
1.4.1 Mineral Resource Estimate Risks
 Drilling is widely-spaced for such a long and relatively narrow vein deposit.
 Current surface chip samples are not of comparable volume and quality with existing
diamond drill samples to be considered for inclusion in the mineral resource estimation.
 Drilling and surface geological mapping results indicate a number of intersecting and
sub-parallel faults and shears that may or may not have influenced the apparent vein
continuity and tenor along its known strike length.
 Geological logs did not fully describe the oxidation state of the precious metal-bearing
mineralization to quantify oxide, transitional and sulphide hosted mineralization for
individual mineral resource estimation.
 Some unresolved QA/QC results may or may not impact the grades of isolated drill core
sample assay batches.
 MQes is not aware of any known environmental, permitting, legal, title, taxation, socio-
economic, marketing, political or other relevant factors that could materially affect the
estimate of the stated mineral resources.
1.4.2 Mineral Resource Estimate Opportunities
 Most of the exploration drilling has focused on evaluating the Urumalqui vein structure at
vertical depths less than 200m. A combination of in-fill drilling with both near surface
and deeper drilling intercepts should improve the interpretation of the vein geometry and
tenor, as well as identify any significant structural displacements that might influence
inferred projections of mineralization.
 A combination of high quality surface channel sampling, increased sample density from
in-fill drilling and resolution of any QA/QC issues should lead to a classification upgrade
of future estimated mineral resources.
 Detailed identification and interpretation of the oxidation state of the mineralization to
quantify mineralization for various recovery processes may positively influence the cut-
off grades for future mineral resource estimates.
1-9 MQes
 The exploration potential of the Urumalqui vein is good. Exploration results show that
the known vein mineralization may continue along its trend in both strike directions and
to depth along its entire known length.
 This project is still in the advanced exploration stage requiring significant additional
work to better define the geometry and tenor of the vein deposit, and evaluate available
mining and processing methods.
1.4.3 Mineral Processing and Metallurgical Testing – Risks
 Samples used in metallurgical test work to date are insufficient in number, may not be
representative and it is possible certain mineral assemblages have not been identified and
tested.
 Successful treatment of material from the Urumalqui project will be dependent on
developing an economic processing route. The metallurgical and processing parameters
required to determine an economic processing route are not yet fully developed. Further
metallurgical test work is required to determine these parameters, perform engineering
evaluations and assess project economics.
1.4.4 Mineral Processing and Metallurgical Testing - Opportunities
 Metallurgical criteria such as primary grind size, reagent scheme, regrinding, etc are
currently not optimized. Optimization of these criteria may improve recoveries of silver
and gold.
1.5 Proposed Exploration Budget
The proposed 12 month exploration budget for the Urumalqui project is estimated at US$1.2
million. Details of these costs are presented in Table 1-2.
1-10 MQes
Table 1-2: Proposed 2012 Exploration Budget
Estimated Cost
Description
(US $)
Exploration Manager – Project Management and Supervision ($7,000/month) 84,000
Senior Geologists – Field Supervision, Mapping, Trenching, Logging
(1X11 Months and 1X6 Months @ $4,500/Month, each) 76,500
Junior Geologists – Field Assistance, Trenching (2 @ $2,500/Month) 60,000
Project Assistant ($650/Month) 7,800
Field Workers (6X6 Months ad 12X6 Months @ $300/Month, each) 32,400
Field Office and Accommodations ($1,000/Month) 12,000
Food ($600/Month) 7,200
Truck Rental – 2 Trucks ($75/Month, each) 1,800
Transportation ($5,000/Month) 60,000
Field Camp Supplies, Fuel and General Expenses ($5,000/Month) 60,000
Airfare – Peru ($1,000/Month) 12,000
Offsite Lodging/Board (4 Days/Month @ $100/Day) 4,800
Permitting – Phase II Drilling Program 50,000
Community Relations – Consultants ($2,500/Month) 30,000
Community Relations – Projects ($3,000/Month) 36,000
Metallurgical Testwork on Urumalqui Vein Mineralization and Reporting 150,000
Surveying – DDH Collar and Roads and Channel Sampling Site Surveying 11,000
Diamond Drilling – 2,000 metres @ $150/metre Direct Drilling Costs 300,000
Analyses – Core and Surface Samples (2,000 Samples @ $35/Sample) 70,000
Drilling QA/QC and Check Assaying (200 Samples @ $35/Sample) 7,000
Check Assaying of Select 2011 Samples (200 @$35/Sample) 7,000
Data Plotting, Reporting and Documentation – Summary Report with Recommendations 15,000
Contingency (~10%) 105,500
Total Estimated Costs of Recommended 2012 Exploration Work $1,200,000
1-11 MQes
SECTION 2
INTRODUCTION
2.0 INTRODUCTION
2.1 Project and Issuer
The Urumalqui property (the ‘Property’) is situated in the District of Julcán, Department of
Libertad in northcentral Peru; approximately 70 kilometres by road east of the city of Trujillo.
It is comprised of four contiguous mineral concessions covering 2,700 hectares or 6,672 acres.
The mineral holdings are currently owned by Minera Corimalqui S.A. (‘Corimalqui’), an indirect
Peruvian subsidiary of Gitennes Exploration Inc. (‘Gitennes’) which is a TSX Venture Exchange
reporting public company. On April 22, 2010, AndeanGold Ltd. (‘AndeanGold’), a TSX Venture
Exchange reporting public company, entered into an Option Agreement with Gitennes whereby
AndeanGold has the right to acquire a 60% joint venture interest in the Property. AndeanGold
established PeruGold Resources S.A.C. (‘PeruGold’) in July, 2008 to administer its Peruvian
interests.
This Technical Report has been prepared by Mr. C. Kaye, FAusIMM, B. Eng Chemical, of Mine
and Quarry Engineering Services, Inc (‘MQes’), Mr. James A. McCrea, P. Geo., and Mr. J.
Douglas Blanchflower, P. Geo., of Minorex Consulting Ltd. (‘Minorex’), for AndeanGold and
Gitennes in compliance with the disclosure requirements of the Canadian National Instrument
43-101. The authors were retained by AndeanGold in August 2011 to qualify historic and
current exploration data and estimate the mineral resources of the Urumalqui vein structure.
The authors have reviewed available exploration results and prepared this independent technical
report (the ‘Report’) in accordance with the formatting requirements of National Instrument 43-
101 (‘NI 43-101’) and Form 43-101F1 (Standards of Disclosure for Mineral Properties) to be a
comprehensive review of the exploration activities and documentation of the mineral resource
estimate. It is intended to be read in its entirety.
2.2 Site Visit
Mr. J. McCrea, an independent qualified person according to NI 43-101, visited the Property on
August 3, 2011 during which time he examined and collected four (4) samples from the stored
core of four different diamond drill holes, and examined and collected four (4) samples of the
mineralization from outcrops of the Urumalqui vein structure. He also reviewed all aspects of
the previous exploration work and that conducted since 2010 on behalf of AndeanGold
including: diamond drilling; geological mapping; sampling, security and shipping procedures;
surveying methods and documentation procedures.
2.3 Principal Sources of Information
AndeanGold and Gitennes provided the authors with all available exploration drilling, sampling,
and assay and analytical results; plus maps, company reports and other public and private
information pertaining to the Property. In addition, AndeanGold provided geological plans
identifying lithological units, alteration facies and zones of mineralization, plus cross-sectional
interpretations of drilling results. This information appears to be of good quality and the authors
have no reason to believe that any of the information is inaccurate.
2-1 MQes
Several published references on the regional geology and mineral deposits of Peru and
specifically the Department of La Libertad were reviewed by the authors, and additional
information was also obtained from several Internet sources. The authors have assumed that all
of the referenced information and technical documents are accurate and complete in all material
aspects. Technical reports and other documents used in the preparation of this report are listed in
Section 27 of this report.
Documents pertaining to the subject mineral concessions were obtained from AndeanGold
(2011) and Gitennes (2011). The authors has relied upon these documents for the verification of
title for all of the subject mineral concessions and rights.
2.4 Standard Terms and Abbreviations
Units of measurement used in this report conform to the SI (metric) system unless otherwise
noted. All currency units are US dollars (US$) unless otherwise noted.
Standard terms and abbreviations are as follows:
Table 2-1: Standard Terms and Abbreviations
Terms Description Terms Description

AMSL above mean sea level µm micrometers (10-6m)
A ampere um micron
atmosphere (29.92in Hg, 760mm Hg, 101.3
atm mph miles per hour
kPa)
AA atomic absorption mg milligram (10-3g)
Az azimuth mm millimetre (10-3m)
b.y. billion years mm Hg millimetres mercury
Wi Bond work index Mt million tonnes
cal calorie Moz million troy ounces
CAD$ Canadian dollar m.y. million years
CIL carbon-in leach Ma million years ago
milliounces (Troy) per short
CIP carbon-in-pulp moz
ton
cm centimetre min minute
3
cm cubic centimetre mol mole
ft3 cubic feet NI 43-101 National Instrument 43-101
cfm cubic feet per minute N newton
3
m cubic metre oz ounce (Troy)
mm3 cubic millimetre opT ounces per short ton
Hz cycles per second (Hertz) ppb parts per billion
2-2 MQes
Terms Description Terms Description
d day ppm parts per million (by weight)
°C degree Celsius Pa pascal
°F degree Fahrenheit % per cent
° degree of arc lb pound (avoirdupois)
deg degrees (angular) psi pounds per square inch
dia diameter QA Quality Assurance
DDH diamond drill hole QC Quality Control
dmt dry metric tonne RC reverse circulation drilling
ft feet rpm revolutions per minute
gal gallon (US) RQD rock quality description
gpm gallons per minute ROM run-of-mine
GPS Global Positioning System s, sec second
Au gold st short ton (2,000 pounds)
AuEq gold equivalent grade Ag silver
g gram SG specific gravity
2
gpt grams per tonne cm square centimetre
2
ha hectare ft square feet
hp horsepower km2 square kilometre
h hour m2 square metre
in inch mm2 square millimetre
standard cubic feet per
in Hg inches mercury scfm
minute
standard cubic meters per
ICP induced coupled plasma scmh
hour
tonne (1,000 kg or 2,204.6
J joule t
lbs)
kg kilogram TDS total dissolved solids
km kilometre oz troy ounce (31.1035 grams)
kVA kilovolt-ampere US$ United States dollar
kW kilowatt vvh vessel volumes per hour
LOM life-of-mine V volt
l,L litre vol volume
meshes (screen wires) per linear inch (Tyler
mesh vol % volume percent
series, unless noted)
m metre W watt
µ micro (10-6) wt % weight %
-6
µg microgram(10 g) y year
2-3 MQes
2.5 Acknowledgements
The authors wish to thank office and field personnel of AndeanGold and Gitennes for their help
with this study. Mr. John Bolaños, former GM Latin America Exploration for AndeanGold,
escorted Mr. McCrea during his property examination and was especially helpful with project
and exploration overviews, and data acquisition.
2-4 MQes
SECTION 3
RELIANCE ON OTHER EXPERTS
3.0 RELIANCE ON OTHER EXPERTS
The authors were not involved in any exploration work on the subject property, and therefore this
report has made extensive reference to the works undertaken by other qualified geologists and
professional field personnel. Other non-project specific reports by qualified personnel have been
referenced whenever possible. The information, conclusions, opinions and recommendations are
based upon:
 Information available to the authors at the time of the preparation of this report;
 Assumptions, conditions and qualifications as set forth in this report; and
 Data, reports and other information provided by AndeanGold and Gitennes, and other
third party sources.
The authors have not carried out any independent exploration work, drilled any holes nor carried
out any sampling and assaying.
Mr. John Bolaños, former GM Latin America Exploration for AndeanGold, accompanied Mr.
McCrea during his property examination and provided information on all aspects of Property’s
historical and recent exploration work. The authors have reviewed the comprehensive reports
and data on the Property’s exploration history. This exploration information is of reasonable to
good quality, and there is no reason to believe that any of the information is inaccurate.
Mr. Anthony F. Ciali, President, CEO and Director of AndeanGold, provided the authors with
summaries of the corporate and legal documents pertaining to the acquisition of the Property for
AndeanGold. Documents pertaining to the location, recording and current status of mineral
concessions were provided by AndeanGold (2011) and Gitennes (2011). The authors have relied
upon the legal due diligence or title opinion conducted by the legal counsel for AndeanGold and
these documents have not been investigated or confirmed by the authors. The description of the
property, and ownership thereof, as set out in this report, is provided for general information
purposes only.
Gitennes provided the authors with the results of their 2008 preliminary metallurgical testwork
carried out in Peru at Laboratorio Plenge & CIA S.A. and Alex Stewart (Assayers) del Perú
S.R.L. The information in these reports appears to be of reliable quality.
This report has been prepared for use by AndeanGold Ltd. and Gitennes Exploration Inc. It is
intended to be read as a whole, and sections or parts thereof should therefore not be read or relied
upon out of context.
The authors are pleased to acknowledge the helpful cooperation of AndeanGold and Gitennes
management and staff, all of whom made any and all data requested available and responded
openly and helpfully to all questions, queries and requests for material.
3-1 MQes
SECTION 4
PROPERTY DESCRIPTION AND LOCATION
4.0 PROPERTY DESCRIPTION AND LOCATION
4.1 Project Location and Description
The Urumalqui property is located within the District of Julcán, Department of La Libertad, Peru;
about 70 kilometres by road east of the coastal city of Trujillo (Figure 4 - 1). The
approximate geographic centre of the Property is at 8° 05’ South latitude, 78° 29’ West
longitude, or UTM PSAD56, Datum 17S at 777500 metres East by 9105150 metres North.
The Property is comprised of four mineral concessions, namely: Aurea Elisa 13, Morochas,
Patientia and Philtrum, that cover a total of 2,700 hectares or 6,672 acres. Table 4-1 documents
the pertinent mineral concession information.
Table 4-1: Mineral Concession Information (after Blackwell, 2009)
Concession Ownership Codigo Status Area (ha)

AUREA ELISA 13 Minera Corimalqui S.A 01-01513-02 Claim granted 1,000
MOROCHAS Minera Corimalqui S.A 01-02012-02 Claim granted 700
PATIENTIA Minera Corimalqui S.A 01-00746-03 Claim granted 600
PHILTRUM Minera Corimalqui S.A 01-01584-02 Claim granted 400
Area (Ha) 2,700
Figure 4-1 and 4-2 of this report illustrate the location and configuration of the various mineral
holdings comprising the Property.
4.2 Property Ownership
The Urumalqui property was first acquired in 2002, and explored initially as a joint venture
between Peruvian companies affiliated with Gitennes and Meridian Gold Inc. (‘Meridian’), but
on June 17, 2005 the companies terminated their agreement and Gitennes assumed full
ownership (100%) of the project. The property is owned by Minera Corimalqui S.A., now
an indirect Peruvian subsidiary of Gitennes. AndeanGold entered into an Option Agreement
with Gitennes, dated April 22 2010, whereby AndeanGold has the right to acquire a 60% joint
venture interest in the Property. In order to earn its 60% interest, AndeanGold must:
 Ensure that PeruGold expends CDN$3 million of qualifying expenditures on the Project
over a four (4) year term (the ‘Term’), commencing July 8, 2010;
 Ensure that PeruGold completes 3,000 metres of drilling by the end of the second year of
the Term and 7,000 metres of cumulative drilling by the end of the third year of the
Term; and
 Issue Gitennes 20,000 common shares of AndeanGold as well as 20,000 common shares
on each of the first, second and third year anniversaries of the agreements. Except for the
first payment, Gitennes may elect to receive cash in lieu of shares, with the cash amounts
not to exceed CDN$25,000, CDN$50,000 and CDN$100,000, respectively, with respect
to the first, second and third year anniversary date payments. If the market value of the
4-1 MQes
shares on the respective payment date exceeds the maximum cash payment amount on
such date, the difference will be satisfied by the issuance of equivalent shares.
Upon AndeanGold exercising its Option, Corimalqui will transfer the titles to the subject mineral
concessions to Newco, a joint venture Peruvian company to be owned by PeruGold (60%
shareholder interest) and Corimalqui (40% shareholder interest). PeruGold would be the
operator of the joint venture.
Figure 4-1: Location Map
4-2 MQes
4.3 Mineral Rights in Peru
The ‘General Mining Law of Peru’ defines and regulates different categories of mining activities,
ranging from sampling and prospecting to development, mining, and processing. Mining
concessions are granted using UTM coordinates to define areas generally ranging from 100ha to
1,000ha in size. Mining titles are irrevocable and perpetual, as long as the titleholder maintains
payment of the “Derecho Vigencia” fees up to date to the Ministry of Energy and Mines. A
holder must pay a “vigencia” (annual maintenance fee) of US$3/ha (for metallic mineral
concessions) for each concession actually acquired, or for a pending application (petitorio or
claim), at the time of acquisition and then by June 30th of each subsequent year to maintain the
concession.
The concession holder must sustain a minimum level of annual commercial production of greater
than US$100/ha in gross sales before the end of the sixth year of the granting of a concession; or,
if the concession has not been put into production within that period (by the first semester of the
seventh year), the annual rental increases to US $9/ha (US$3 for vigencia plus a US$6 penalty)
until the minimum production level is met. If by the start of the twelfth year the minimum
production level has still not been achieved then the annual rental increases to US $23/ha
thereafter (US$3 for vigencia plus a US$20 penalty). The concession holder can be exonerated
from paying the penalty if he can demonstrate that during the previous year he has “invested” an
equivalent of no less than ten times the penalty for the total concession. This investment must be
documented along with the copy of the “declaración jurada de impuesto a la renta” (annual tax
statement) and the payment of the annual “Derecho Vigencia” fees. The concession will
terminate if the annual rental is not paid for three years in total or for two consecutive years. The
term of a concession is indefinite provided it is properly maintained by payment of rental fees.
A Peruvian mining concession is a property-related right, distinct and independent from the
ownership of land on which it is located, even when both belong to the same person. The rights
granted by a mining concession are defensible against third parties, are transferable and
chargeable, and, in general, may be the subject of any transaction or contract. See:
http://www.minera.gob.pe/mineria/legislacion/data/D.S.N_014-92-LSM.doc.
To be enforceable, any and all transactions and contracts pertaining to a mining concession must
be entered into a public deed and registered with the Public Mining Registry (Registro Publico
de Mineria). Conversely, the holder of a mining concession must develop and operate his/her
concession in a progressive manner, in compliance with applicable safety and environmental
regulations and with all necessary steps to avoid third-party damages. The concession holder
must permit access to those mining authorities responsible for assessing that the concession
holder is meeting all obligations.
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Figure 4-2: Mineral Concession Map
4-4 MQes
4.4 Surface and Water Rights
PeruGold has agreements with individual that provide access to the land and permission to
establish drill pads in exchange for a modest fee. Most of these agreements also include a
clause whereby PeruGold has the option to purchase the land in question (Ciali 2011).
The rights of title to the mineral concessions do not carry water rights which are available for
exploration purposes but would have to be negotiated with the land owners and various
governmental agencies prior to any advanced development or mining operation on the Property.
4.5 Environmental Regulations, Liabilities and Permitting Issues
According to Blackwell (2009), “Two environmental evaluations (Evaluación Ambiental de

Exploración) have been submitted by Corimalqui to the Ministerio de Energia y Minas of the
Republic of Perú in order to obtain Category C drilling permits. These reports describe
environmental, archaeological and socio-economic conditions in the study area and state that
the owner will return the land to its original condition and not affect the environment. Permits
were granted in both instances, as well as an earlier category B permit that did not require an
environmental evaluation. These permits are referenced in the Ministry files as Resoluciones
Directorales Numbers 006-2003-MEM/AAM, 409-2004-MEM/AAM and 183-2007- MEM/AAM.
Commitments made by Corimalqui as part of the permitting process included re-vegetation,

safe disposal of dangerous waste and maintaining good community relations. Copies of all
related agreements, from minutes of community meetings to stakeholder approvals to the
agreement with the municipality of Julcán to use its waste disposal systems (i.e. garbage dump)
were attached to the applications.”
According to Ciali (2011), the 2011 diamond drilling program was carried out subject to an
Environmental Impact Declaration permit which allowed the drilling from up to 20 drill pads
within a 5-hectare area. Future infill drilling along the central 1,000 metre portion of the
Urumalqui vein structure may be undertaken using any of the 20 existing pads which can be
moved up to 50 metres from their permitted locations. Any other drilling outside of the 1,000
metre central section of the vein, whether along the Urumalqui vein or on the other veins
identified to date on the property, will require PeruGold to file an Environmental Impact
Statement which PeruGold is presently preparing. No bonding is required for an Environmental
Impact Declaration permit.
PeruGold reclaimed all drill site access roads, drill pads and settling ponds immediately
following completion of each drill hole. A thorough report documenting this work has been
prepared by John Bolaños and Percy Espejo Rodríguez for PeruGold. Pending a site visit by the
PeruGold environmental consultant, a final report will be prepared and submitted to the
governmental authorities.
4-5 MQes
SECTION 5
ACCESIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND
PHYSIOGRAPHY
5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND

PHYSIOGRAPHY
5.1 Accessibility
The Property is vehicle accessible by the coastal city of Turjillo in the Department of La
Libertad. Trujillo with a population of 800,000 is the nearest urban and major commercial centre
to the Property. It has regular daily 1-hour commercial flights from the capital city of Lima
which 480 kilometres to the south (see Figure 4-1).
A paved and hard-packed gravel road joins Trujillo with the village of Julcán to the east and
then there are unimproved gravel roads to the Property. The driving time is approximately 2 to
3 hours.
5.2 Climate and Vegetation
The climate is typical of the western portion of the Andes Mountains. There is a rainy season
with cool day and night time temperatures lasting from November to March. The dry season
from April to October has relatively hot sunny days with cool night time temperatures.
Exploration of the Property may be carried out year-round but best done during the dry season.
5.3 Local Resources and Infrastructure
According to Blackwell (2009), the Quiruvilca Mine, operated by Pan American Silver Corp., is
nearest industrial site, situated 20 kilometres east-northeast of the Property. It has an ore
processing plant capable of milling 50,000 tonnes per month of zinc-lead-copper-silver ores.
E l s e w h e r e at Salpo and Machacala, all within 45 minute drives from Urumalqui, t h e r e a r e
a n u m b e r o f s mall polymetallic vein mines that operate intermittently during periods of
high metal prices.
There is an electrical transmission line to Julcán and the Urumalqui area receives both local
electricity and cellular telephone service.
Labour and supplies for any future exploration work on the Property is readily available from
both Trujillo and the local villages that have long mining histories.
5.4 Physiography
The Property is situated within the Pacific Ocean watershed of the Cordillera Occidental, part of
the Andes Mountains. Elevations within the property range from 3,400 to 3,700 metres A.M.S.L.
with local moderate relief.
Except for eucalyptus plantations, there is little standing timber. Most has been cleared for
sheep and cattle grazing and/or various potato, tuber and grain farming by individual land
owners.
5-1 MQes
SECTION 6
HISTORY
6.0 HISTORY
6.1 Regional Mining History
Peru is one of Latin America’s larger gold producer, largely a result of revised mining laws
instituted in the 1990’s and the subsequent exploration attention by several international mining
companies. Newmont Mining Corporation’s Minera Yanacocha, Latin America’s largest gold
mining operation, commenced production in the early 1990’s and is now producing over 2
million ounces of gold annually. In 1998, Barrick Gold Corporation’s Pierina mine started
production and now yields approximately 900,000 ounces of gold annually, and more recently
Barrick has put their Laguna Norte mine into production with reported reserves in excess of 10
million ounces of gold.
Base metal exploration also increased in the 1990’s with the privatization of the Antamina
copper-zinc skarn deposit in north central Peru resulting in over US $ 2 billion of investment. In
addition, the Tintaya copper mine, one of the largest copper producers in Peru was privatized in
late 1994 and later purchased by Switzerland-based Xstrata. Figure 4-1 of this report shows the
location of several gold-silver and base metal mines and prospects in the vicinity of the subject
property.
6.2 Property Exploration and Mining History
The original exploration of the Urumalqui property area, including old adits and pits, may date
back to the late 1800th century when mineralization was first reported at the nearby Quiruvilca
mine site in 1789. According to Tumialán (1982), during the 1980’s an exploration shaft was
sunk and drifting was carried out on the 28-metre level, with a 250 metre drift on the 50 metre
level and a winze to the 80 metre level.
According to Blackwell (2009), “The area of the property was acquired in 1993 by Minera
Andina de Exploraciones, an affiliate of SIMSA Group. In 1996 the property was optioned
and explored by Minera Cambior del Peru S.A., whom completed five widely-spaced drill
holes on 5 different targets. This work appears to be the only drilling done before Gitennes’
acquisition of the project. The results of Cambior’s work at Urumalqui were not available to
Corimalqui until 2007. Andina’s concessions lapsed in 2001 and were open to staking in 2002.
Gitennes acquired the property jointly with Meridian Gold Ltd. in 2002 and formed a joint
venture company, Corimalqui to explore the property.”
Between 2003 and early 2010 Corimalqui explored the Property until AndeaGold acquired
operatorship in April, 2010. Since then PeruGold, on behalf of AndeanGold, has been carrying
out the exploration work. The following text summarizes the exploration work carried out by
Corimalqui and Gitennes prior to the Gitennes-AndeanGold option agreement, as reported by
Blackwell (2009).
 2003 – Work includes: commissioning a topographic map from air photographs

(replaced in 2008 by an IKONOS satellite image and topographic map), geological
6-1 MQes
mapping of the veins and property, establishing a picketed survey control grid (1,000
by 2,000 metres), B-horizon soil sampling, geophysical surveying by Val d’Or IP
(on 200 metres lines) and magnetics (100 metres lines), differential GPS surveying of
the survey control grid area, rock geochemical sampling, and drilling 17 core holes
totalling 2,282.6 metres.
 2004 – Survey control grid extended with its southwestern portion covered by 3D – IP
and magnetometer surveying (Fugro and SJV Geophysics), and some additional soil and
rock sampling. Followed by drilling 18 core holes totalling 2,619.4 metres.
 2005 – Meridian Gold relinquishes interest. Some geological mapping.
 2006 – Little activity, some geological mapping.
 2007 – Corimalqui commissioned a detailed project review and report by Valdivia.
 2008 – Diamond drilling program including 12 core holes totalling 2,262.4 metres,
metallurgical testing, IKONOS–based topographic mapping, mineralogy studies and
completion of the Valdivia report. The shaft was cleaned and underground workings
examined.
6-2 MQes
SECTION 7
GEOLOGICAL SETTING AND MINERALIZATION
7.0 GEOLOGICAL SETTING AND MINERALIZATION
The following descriptions of the country-wide, regional and property geological settings are
based largely upon recent geological works by Bolaños (2011) and Blackwell (2009)
7.1 Regional Geology
The following description of the regional geological setting is quoted from the technical report
by Blackwell (2009).
“The regional geology has been mapped by Cossio and Jaen (1967) and described
by Cossio (1964). The project is on the edge of recent investigations of Cenozoic
volcanic rocks by Navarro and Rivera (2006).
The oldest exposed rocks in the region are Upper Jurassic Chicama Formation
mudstones overlain by Lower Cretaceous sedimentary rocks of the Goyllarisquizga
Group (Chimu, Santa-Carhuaz and Farrat Formations). These shallow marine units are
exposed 22 km north and east of the property, in the Otuzco and Quiruvilca areas.
Lower to Middle Cretaceous submarine andesite to rhyodacite flows and pyroclastic
tuffs, belonging to the Casma Group occur at lower elevations, 25 to 30 km west of the
property. The Mesozoic stratigraphy has been folded about northwest to west-verging
isoclinal axes and has been intruded by late Cretaceous to Oligocene granodiorite and
diorite (Coast Batholith) with outcrops at lower elevations 35 to 40 kilometres west of
Urumalqui.
The Cenozoic (Eocene to Miocene) Calipuy Group forms a relatively flat-lying,

unconformable plate on pre-Calipuy basement that caps elevations in the region
above 3,200 metres. The group is dominated by subaerial andesite flows, breccia and
pyroclastic tuff, volcaniclastic conglomerate and grit, dacite domes. The Calipuy Group
is of highly variable thickness, ranging up to 1500 metres, and is broadly warped and
faulted. Navarro and Rivera (2006) document at least five irruptive centres in the region
ranging in age from 30.2 million years down to 16.7 Ma.
The Calipuy Group is the rock unit that hosts mineralization at Urumalqui, and the
property is located on the southern flank of the youngest volcanic centre in the region
(Uromalqui) near its overlap onto an older centre (Paccha-Uromalqui). The Company
has completed one vertical hole (URU04-31) to a depth of 351 metres that provides a
good stratigraphic section.”
7-1 MQes
Figure 7-1: Regional Geology Map (After Servicio de Geologia Y Mineria, 1980)
7.2 Property Geology
7.2.1 Lithology
Volcanic rocks of the Eocene to Miocene-age Calipuy Group predominantly underlie the entire
Property. These rocks include green to maroon, variably magnetic, porphyritic andesitic flows
with plagioclase phenocrysts, volcanic glass and hornblende, interbedded with volcaniclastic
rocks and brecciated andesitic lavas (Blackwell, 2009).
The following description of the property geological setting is quoted from the technical report
by Blackwell (2009).
7-2 MQes
“The oldest rocks on the property (Figure 3) are likely light-coloured dacite tuff,
breccia and minor mudstone exposed along the flank of Cerro Paccha (“Cerro” in
Spanish means “hill”) in the extreme western portion of the property. These units are
variably faulted and tilted to the southeast at 20 to 35o, attitudes which probably reflect
the angle of repose on the flanks of the ancient strato volcano. All but a few isolated
dome-like outcrops of massive magnetic dacite are variably altered to quartz-alunite-
kaolinite, probably due to steam heating and fumarolic or vapour-related alteration.
Hole URU04-31 was collared 4,500 metres east of Cerro Paccha and 200 metres lower in
elevation. At 250 metres depth a relatively flat-lying sequence of dacite tuff,
rhyodacite welded tuff, laminated waterlain tuff, grit and mudstone was entered. This
sequence is probably equivalent to similar light- coloured tuffs found further west in
the valley bottoms of Quebradas Aquila and Corrapalday (“Quebrada” in Peruvian
Spanish means a “ravine”). This sequence may be a distal equivalent to the rocks at
Cerro Paccha, or maybe part of the younger Uromalqui volcanic complex.
The upper 250-metre portion of Hole URU04-31 is a monotonous sequence of variably

magnetic hornblende and feldspar-phyric andesite flows with minor intervals of flow
breccia and lailli tuff. This is the sequence that hosts the veins at Urumalqui, the
nearest outcroppings of which are 200 metres southwest (Mariscala East) and 700
metres northeast (the Urumalqui or main vein). It is essentially flat-lying.
Breccias are frequently encountered during drilling and are found in outcrop through
the southeastern end of the vein through the village of Urumalqui. Fragment size is
highly variable, some appear bedded, others dyke-like, and alteration can include
strong silicification and locally sericite or illite. These breccias are frequently pyritic
and are anomalous in gold, silver, arsenic and mercury. They are most frequently
encountered within 100 metres of mineralized vein structures and are most likely
hydrothermal in origin.
Scattered outcrops of siliceous sinter are found along the western side of Quebrada
Aquila at an elevation of 3250 metres. The sinter is likely related to hot spring activity
and will be Pliocene or younger. The area was glaciated, with movement from south to
north.”
7-3 MQes
Figure 7-2: Sample 1243, 52.25 to 53.80 m, PGUR-06
Brecciated and porphyritic Andesitic Crystal Tuff with white phenocrysts of plagioclase (≤ 3%)
and pervasive K-feldspar (adularia). Disseminated, fine-grained pyrite (5% to 7%) and pyrite
bordering K-feldspar in matrix. Sporadic veinlets and micro-fracture fillings by fine sulphides (2
to 5%).
Pervasive K-feldspar (adularia) with phenocrysts of plagioclase and disseminated pyrite (3%).
Disseminated pyrite in clots and patches (5%) with grey quartz associated with fine sulphides.
Pervasive jarositic alteration after pyrite.
7-4 MQes
Manganese oxides and pyrolusite as infillings along micro fractures fillings associated with
quartz-carbonate veinlets.
7-5 MQes
Figure 7-5: Property Geology Map
7-6 MQes
7.2.2 Structure
The following description of the structural setting on the Property is quoted from the technical
report by Blackwell (2009).
“The region is traversed by numerous linear breaks that are probably vertical faults.
Northwest trending lineaments are coincident with the grain of the underlying folded
Goyllarisquizga Group and may reflect adjustments along older structures. Northeast to
north-striking faults tend to be locally prominent and may prove to be important
features. One such feature extends south from Urumalqui in Quebrada Chuan. Though
evident on satellite photos to the south, by the point it intersects the 3,500- metre
elevation contour this probable fault disappears against the zone of altered Calipuy
volcanic rocks that envelope the Urumalqui vein system. The northwest and east-trending
vein structures as well as several satellite photo lineaments are seen to occur within
several kilometres of the extended trace of the Chuan fault. Vein offsets at Urumalqui
strike north, are vertical and relatively minor in displacement. Finally, satellite photos
reveal a strong east-trending linear that also appears to be covered by the younger,
altered andesite sequence at Urumalqui over 5 kilometres of its length. The writer’s
impression is that the intersection of this old, partially buried east-striking linear and
the north- striking Chuan fault was a site of late volcanic eruption and focused
hydrothermal fluid flow that resulted in the Urumalqui vein system.”
7.2.3 Alteration
According to Blackwell (2009) and Bolaños (2011), the volcanic host rocks in the immediate
vicinity of the known vein are hydrothermally altered with varying amounts of silica (i.e.
commonly chalcedony), adularia, clay minerals (i.e. illite, kaolinite), barite and gypsum.
On a regional scale the country rocks are variably altered depending upon their location relative
to major faulting and fracturing and more local intrusions, such as dykes and intrusive breccias.
The volcanic country rocks in the vicinity of such intrusive bodies are often hydrothermally
altered with silica, alunite and kaolinite and are frequently pyritized.
7.3 Mineralization
Gold and silver bearing mineralization within the Property is hosted by andesitic volcanic units
of the Miocene-age Calipuy Group. The Calipuy Group and its equivalent age and
compositionally similar lithologies host numerous low, intermediate and high sulphidation
epithermal gold-silver deposits in Peru, including the world class high sulphidation epithermal
gold-silver deposits of Yanacocha and Pierina.
According to Bolaños (2011), “Vein minerals at Urumalqui are dominantly fine-grained

crystalline and chalcedonic quartz with manganese and iron oxides (respectively after
rhodochrosite/rhodonite and pyrite). Fine-grained pyrite and dark blue, metallic silver sulphides
and/or sulphosalts were noted in drill core. Alteration is mostly light green coloured illite
affecting andesite volcanic country rocks close to the veins.
7-7 MQes
Vein quartz textures are mostly crustiform-colloform and fine-grained crystalline/drusy.
Radiating needles (after adularia) and vein breccia textures also occur. Breccias are sometimes
associated with concentrated disseminated silver minerals and higher gold and silver grades.”
Figure 7-6: View of the Urumalqui Vein on Surface Looking Northwestward.
Blackwell (2009) described the vein mineralization on the Property as follows.
“Two main vein orientations have been mapped on the property (Figures 4 & 5). A northwest
to southeast (“NW-SE”) trend includes the Urumalqui Vein, La Mariscala West Vein, La
Mariscala South Vein, and the Penélope Vein. An east-west (“E-W”) trend includes La
Mariscala East Vein, Candual East Vein, the Candual West Vein zone, and the Candual Vein.
These veins are developed south of the Urumalqui Vein. All “veins” are hosted by andesite
and all are associated with hydrothermal breccias, varying amounts of illite and silica
alteration, and disseminated pyrite. Most veins dip southerly at 72o to near vertical. A “vein”
in Spanish is “Veta”, hence Veta Urumalqui, Veta Candual etc.
Three distinct styles of epithermal mineralization have been recognized from surface mapping
and drilling on the property:
1. Crustiform - The main Urumalqui vein is an open-space-filling, quartz-adularia

structure, characterized by sharp vein boundaries, multi-stage quartz mineralization as
banded crustiform and colloform-textured veins, with gold and silver mineralization.
Also present are vugs and cockade, bladed, pelletal (moss) and breccia textures.
7-8 MQes
Gold and silver are the analytical elements of interest, with little or no geochemically
anomalous arsenic, antimony, mercury, lead, zinc or copper. Silver minerals include
argentite and electrum, while gold reports to electrum. Another vein on the property
with significant amounts of similar banded, pelletal and crustiform textures is the
western portion of La Mariscala Vein.
2. Breccia veins – typically a linear breccia with diffuse contacts that in places looks like a
zone of replacement while elsewhere may be very vein or dyke-like. The breccias are
very silica (quartz) rich with fine-grained, grey to black chalcedonic quartz, that are
mineralized with gold and silver. Grades and metal ratios are similar to, but generally
lower than in the Crustiform style of mineralization. These silicified breccia zones
appear to be oriented steeply in a vein-like fashion. Mineralization is distinctly
anomalous in arsenic and mercury, with erratic but anomalous lead, zinc and
antimony. Penélope Vein, the central and eastern portions of La Mariscala Vein, and
veins in the Candual area are of this style.
3. Envelope - A broad zone of bleaching and argillic alteration exists that is roughly
symmetrical about the Urumalqui and Mariscala Veins. The alteration “envelope” is
locally silicified and sericite – altered, contains veinlets and patches of fine-grained
pyrite, and has elevated and highly anomalous gold and silver values (the “Envelope”).
Pyrite content is 1 to 4%. Gold and silver values in excess of 100 ppb and 20 ppm
respectively are common.
Urumalqui Vein
The principal target on the property is referred to as the “Urumalqui Vein”. The
Urumalqui Vein is a generally steeply dipping zone, up to 20 metres wide, comprising a
core of one or two banded quartz veins ranging from 0.5 to 11 metres aggregate
thickness, and intervening oxidized vein breccias or altered volcanic rocks.
Crustiform and colloform banding in the veins consists of millimetre- to centimetre-scale
quartz and lesser adularia with occasional darker grey bands that have fine-grained
pyrite and silver-gold minerals. Bands within the veins can be brecciated but re-
cemented by later chalcedonic quartz (distinctly milky-white to light grey in colour, very
fine-grained and not banded in appearance), attesting to multiple episodes of fluid flow
and deposition and to movement while vein formation was in progress. These areas of
chalcedonic quartz are probably the product of very late hydrothermal fluid flow,
below 180oC, below boiling and below the temperatures favourable to gold
mineralization.
The vein is exposed over a strike length of 1500 metres. Vein dips vary between 70 to 85
degrees to the SW. Average strike is 125° N throughout much of this length. Throughout
its exposed length the vein shows several breaks and northeast-stepping offsets. There
are eight vein segments between offsets, ranging in length from 40 metres to 400
metres. For the most part, vein outcrop is continuous along each segment. At least one
of the offsets (at L4+00N) is due to an 090°-trending fault seen in outcrop, elsewhere
faults appear to be more 175o N. Elsewhere other significant breaks coincide with
7-9 MQes
overburden-filled depressions and zones of breccia. The Urumalqui vein adjacent to
several of these off-setting structures can be flooded with chalcedonic silica suggesting
that they may have served as fluid relays between vein segments, and the faulting is in
part contemporaneous with mineralization. At several locations near breaks minor
folding can be seen in the vein, which plunges 60 to 75o northwest.
Drill holes generally intersected the vein at their projected depths, based on the dips
observed on surface. However, some drill holes (e.g. URU04-18) found the vein at
shallower depths than expected. The writer believes this is due to both un-mapped
normal faults or to the existence of additional veins that do not outcrop. This is
particularly possible at the northwest (lines 4+00 to 6+00 N) and southeast (lines 7+00
to 9+00 S) ends of the vein, where vein mineralization was encountered “out-of-
position” relative to adjacent sections and surface mapping, or more than one vein
was encountered where surface mapping suggest only one should be present.
Distinctive quartz textures are evident in outcrop and core that suggest the Urumalqui
Vein tested thus far remains within the zone of boiling. Foremost are “moss” textures,
where pellet-shaped bodies (1 to 3 mm across) of finely banded quartz occur within the
vein, often between crustiform layers. This texture reflects the original nucleation of
silica gel around foreign particles (Morrison et al, 1995) and occurs at relatively high
temperatures and high silica super saturation. It is regarded as being indicative of “the
boiling zone”, and is therefore indicative that conditions are right for gold and
silver to be present. Most drill holes into the Urumalqui vein have encountered moss-
textured quartz, suggesting the mineralized vein has potential to continue deeper.
Thin section and x-ray diffraction studies have identified argentite (Ag2S) and pyrite
(FeS2) as the principal sulphide mineral species, and possible arsenopyrite (FeAsS).
Grain sizes are usually much less than 100 microns. Gold reports to native gold (Au)
and electrum (Ag – Au). Gangue minerals are principally quartz and adularia, with
minor to trace amounts of barite, calcite, illite, kaolinite and gypsum.
The vein was chip-channel sampled from edge to edge during 2002-2003. Analytical
results were highly variable, ranging from 0.1 to 10.3 g/t gold and 5.0 to 413 g/t silver.
Based upon 29 chip-channel samples collected from vein outcrops between grid lines
5+00N and 6+00S the average grade of the vein appeared to be 3.9 g/t gold and 129 g/t
silver over an average width of 3.2 metres. The vein has now been drilled to depths of
over 200 metres and over a strike length of 1,500 metres, results of which are
summarized in Section 11.0.
La Mariscala West Vein
The Mariscala West Vein runs sub-parallel to the main Urumalqui Vein, approximately
800 metres to the south. It strikes in the same NW-SE orientation as Urumalqui has
been traced over a strike length of 500 metres with width from 0.1 to 2 metres. La
Mariscala West has two major splays: one at its south-eastern end striking at 113°,
and one at its north-western end striking E-W (Figure 6). Shallow, overgrown pits
7-10 MQes
are present on the veins, and there are some small pre-Colonial rock walls to the
northwest of the main showing. Corimalqui has sampled the site and drilled two
holes, but has otherwise avoided further work here until a rigorous archaeological
assessment is done.
La Mariscala West comprises mostly milky quartz infilling a fracture or fault.

Locally the vein displays a crustiform appearance with chalcedonic and dark grey
bands possibly carrying primary sulphides, and moss texture. The lapilli tuff host rock is
strongly altered with moderate to strong silicification and argillic alteration seen along
the length of the vein. The lateral extent of this alteration halo has not been yet
determined. Kaolinite and illite have been identified in PIMA samples taken from La
Mariscala West. Thin hairline quartz veinlets are present in close proximity to the vein.
A total of 48 rock samples were taken on the vein in December 2003. All but five of
these samples were rock chips collected across the vein and into altered host rock. Gold
numbers were generally low, mostly ranging between 100-300 ppb. The highest gold
grades are found in the intersection of the vein and the south-eastern splay (2,340 ppb)
and in the area of the old workings and chalcedonic banding (up to 5,920 ppb). Altered
wall rock also shows anomalous gold numbers up to 300 ppb. This suggests the presence
of a mineralized gold envelope around La Mariscala West similar to that observed
during drilling of the Urumalqui Vein. The average gold grade for all the samples taken
was 456 ppb.
Silver values are erratic; the highest silver grades coincide with the highest gold grades,
but some high silver values are also found in sections of the vein where gold is low.
Average silver grade in the vein is 43 ppm based upon surface samples.
La Mariscala East
La Mariscala Este (Figure 7) is an east-striking steeply north-dipping vein. It is vaguely

banded and contains angular rock clasts. A blue-green micaceous mineral, possibly
smectite, is found here, Very fine, disseminated pyrite occurs in dark grey quartz and
along fractures. The vein itself rarely exceeds a metre or two in thickness, although its
easternmost exposure comprises several individual veins and strongly silicified host
rock over a width of seven metres. Twenty-two rock chip samples have been collected
to date, averaging 476 ppb gold and 75 g/t silver. Three drill holes have been
collared on this structure. This segment of the vein has been traced in outcrop for 240
metres, and may extend another 300 metres west to La Mariscala Centro Vein. The latter
is exposed over a strike length of 30 metres before it is lost in the gorge of Quebrada
Chuan. Only one chip sample has been collected here, returning 154 ppb gold and 6.3
ppm silver. It has not been drilled. The La Mariscala West is further on strike, 600 m
northwest, suggesting that these three portions may be part of one larger, multi- vein
splaying structure that is 2200 metres-long, Much of this large target length is
overburden-covered at its northwest end f(or 550 m) and similarly over 600 m along
the southeast end. The intervening 1050 metres are marked by a strong IP anomaly
and intermittent high gold-in-soil anomalies that are strongest toward the Este end of the
zone. None of this has been drilled.
7-11 MQes
La Mariscala Sur
Another vein structure, Mariscala Sur (Figure 7), extends southeast for 330 m into the
hanging wall of Mariscala. Fifteen rock chip samples returned an average 466 ppb
gold and 30 g/t silver across sample widths of 1 to 14 m. The main Sur segment
usually occurs as a single northwest-trending vein with a thickness of 1-2 metres. Gold
tenor ranges from 33 to 1520 ppb, with only one sample exceeding 1 g/t gold. It has not
been drilled.
La Candual Veins
The Candual area (Figure 7) is divided by Quebrada Chuan into east and west
segments. East of the creek, Candual Este consists of two recognizable west-trending
near-vertical veins or zones of silicification 3 to 6 metres thick. One of these veins was
sampled over a strike length of 160 metres. West of the creek, Candual West features a
number of west-trending near-vertical parallel veins occurring over a horizontal
distance of at least 140 metres. The veins are usually 0.5 to 6 metres thick. Locally, they
may have come together in the wider sample intervals, and it is uncertain whether the
current sampling followed a single continuous vein or several parallel or sub parallel
veins in close proximity to one another. Candual Oeste was sampled over a strike
length in excess of 450 metres, and remains open to the west.
The Candual target is a 1500 m-long zone of fracturing, veining and silicified rock.
Forty-two rock- chip samples have been collected thus far and average 588 ppb gold and
19.4 g/t silver. Sampling is weighted to the eastern end of the zone where gold values
range from 314 to 2520 ppb. Corimalqui has drilled two holes at Candual West.
Penelope Vein
Another vein, Penelope (not shown), was sampled in 2003. It strikes Northwest-
southeast, extending at least 250 m into the hanging wall of Candual. Only five samples
were collected here, 4 of vein material. All are relatively low in silver, 0.6 up to 47.9
ppm, but of interesting gold tenor, 146 to 1125 ppb. Penelope has not been drilled.”
7-12 MQes
Figure 7-7: Collecting Verification Sample from the Urumalqui Vein
Figure 7-8: View of the Urumalqui Vein Structure #1
View of the Urumalqui vein structure exhibiting banded and crustiform quartz-adularia vein
textures typical of low-sulphidation epithermal deposition.
7-13 MQes
Figure 7-9: View of Urumalqui Vein Structure #2
View of bleached and siliceous banded and crustiform quartz-adularia vein material from the
Urumalqui vein structure
7-14 MQes
SECTION 8
DEPOSIT TYPES
8.0 DEPOSIT TYPES
The Urumalqui property hosts gold and silver bearing mineralization with metallogenic
characteristics commonly associated with a low sulphidation (adularia-sericite) epithermal
mineralizing system. Epithermal or high level hydrothermal systems generally occur from
depths of less than 2km to surficial hot spring settings and are hosted by a variety of geological
environments but usually by Tertiary-age volcanic rocks associated with subduction zones at
plate boundaries (Panteleyev, 1996).
Volcanic rocks of calc-alkaline andesitic composition are the most common host rocks, usually
in areas with bimodal volcanism and extensive subaerial ash flow deposits and less commonly
associated with alkalic intrusive rocks, shoshonitic volcanics, or clastic and epiclastic sediments
in intra-volcanic basins (Panteleyev, 1996). Epithermal systems can be of any age, usually related
to their host volcanic rocks but invariably slightly younger in age (0.5 to 1 Ma, more or less).
Older epithermal deposits are less common due to the effects of erosion or metamorphism
(Sillitoe, 1993).
Regional tectonic settings for epithermal systems comprise volcanic island and continent margin
magmatic arcs or continental volcanic fields with extensional structures. Regional scale fracture
systems are common structural controls related to grabens, resurgent calderas, flow dome
complexes and, rarely, maar diatremes. Extensional structures in volcanic fields (normal faults,
fault splays, ladder veins, cymoid loops, etc.) are common, as are local graben or caldera fill
clastic rocks. High level (subvolcanic) stocks and/or dykes and pebble breccia diatremes may be
present in the deposition environment, in addition to locally resurgent or domal structures related
to underlying intrusions (Panteleyev, 1996).
Low sulphidation epithermal mineral deposits form in both subaerial, predominantly felsic,
volcanic fields in extensional and strike slip structural regimes and island arc or continental
andesitic stratovolcanoes above active subduction zones. Near surface hydrothermal systems are
localized by structurally and permeability focused fluid flow zones where there are relatively
dilute and cool mixtures of magmatic and meteoric fluids with temperatures between 200°C and
300°C (Sillitoe, 1993). Mineral deposition occurs as the fluids undergo cooling and degassing by
fluid mixing, boiling and decompression (Panteleyev, 1996).
Mineralization is typically localized in structures but may occur in permeable lithologies.

Upward flaring mineralized zones centred on structurally controlled hydrothermal conduits are
common. Large (> 1m wide and hundreds of metres in strike length) to small veins and
stockworks are common with lesser disseminations and replacements. Vein systems can be
laterally extensive but ore shoots have relatively restricted vertical extent. Higher grade
mineralization is commonly found in dilational zones in faults at flexures and splays (Panteleyev,
1996).
Quartz veins, stockworks and silicified tectonic breccias commonly host gold, silver, electrum,
argentite and pyrite with lesser and variable amounts of sphalerite, chalcopyrite, galena, rare
tetrahedrite and sulphosalt minerals. The mineralization commonly exhibits open space filling
textures and is associated with volcanic-related hydrothermal to geothermal systems. Mineral
8-1 MQes
deposits are commonly zoned vertically over 250 to 350 metres from a base metal poor, gold and
silver rich top to a relatively silver rich base metal zone and an underlying base metal rich zone
grading at depth into a sparse base metal, pyritic zone.
Open space filling, symmetrical and other layering, crustification, comb structure, colloform
banding and multiple brecciation are common vein textures. Repetitive generations of quartz
and chalcedony are commonly accompanied by adularia and calcite, and pervasive silicification
in vein envelopes is usually flanked by sericite-illite-kaolinite assemblages. Intermediate argillic
alteration (kaolinite-illite-montmorillonite + smectite) may form adjacent to veining and
advanced argillic alteration (kaolinite) may form along the tops of mineralized zones. Propylitic
alteration dominates at depth and peripherally. Weathered bedrock exposures are often
characterized by resistant quartz 'ledges' and extensive flanking bleached, clay-altered zones with
jarosite and other limonite minerals (Panteleyev, 1996).
There are many documented examples of low sulphidation epithermal type mineral deposits.
Since the early 1980’s exploration for these types of deposits has focused along the Cordillera
and Andean tectonic belt from Alaska to southern Chile. There are a number of international
examples of low-sulphidation epithermal mineral deposits including: Toodoggone district
deposits in British Columbia, Canada; Comstock and Aurora deposits in Nevada, USA; El
Bronce, Chile; Guanajuato, Mexico; Colqui, Peru; and Ladolam in Lihir, Papua- New Guinea.
Figure 8-1: Schematic Cross-Section of the Epithermal Deposit Model
After Berger and Eimon, 1983
8-2 MQes
SECTION 9
EXPLORATION
9.0 EXPLORATION
The historic exploration work and the 2003 to 2009 exploration programs by Corumalqui and
Gitennes are well documented by Blackwell et al. (2003), Foster et al. (2004 and 2005) and
Blackwell (2009). The following text regarding this exploration period is quoted directly from
these reports and has also been summarized in the ‘History’ section of this report. Recent
exploration work by PeruGold and AndeanGold has been documented by Bolaños (2011) and by
various exploration maps and data provided by AndeanGold (2011). It is the opinion of the
authors that the aforementioned documents are of reasonable to good quality, and there is no
reason to believe that any of the information is inaccurate.
9.1 Pre-2002 Exploration Work
Historic exploration of the Property probably dates back to Colonial time but the only obvious
evidence of such work are the old workings, including short adits, pits and a production shaft that
was sunk to a vertical depth of 50 metres below surface. According to Blackwell (2009, after
Tumialán, 1982), there was limited development on the -20m level, with a 300m drift and winze
on the -50m level. An underground gallery mined extracted mineralization between - 80m and -
50m, with some extraction likely below the -80m level using buckets and ropes. The
mineralization was reportedly trucked to the village of Salpo for processing (Foster et al., 2003).
Minera Andina de Exploraciones, a subsidiary of the SIMSA Group, acquired the Property in
1993, and added to the mineral holdings with additional concessions in 1995. Minera Andina
later optioned the property to Compañía Minera Cambior S.A. in 1996. According to Foster et
al. (2003), in 1998 Cambior drilled six wide spaced holes directed at geological and geophysical
targets but the drilling results are not available.
Minera Andina failed to pay its taxes on its mineral concessions and they were subsequently
declared open for re-application in 2002. Various companies, including Cambior, Meridian Gold
Peru SAC and Compañía Minera Seis Ríos S.A., a Peruvian subsidiary of Gitennes, acquired
mineral concessions to the area now covered by the Property. Later, Meridian Gold and
Compañía Minera Seis Ríos agreed to a joint venture arrangement and pooled their respective
holdings and resources forming a joint venture company, Minera Corimalqui SA.
9.2 2002 to 2009 Exploration Work
The following summary of exploration activities by, firstly, the Meridian-Gitennes (Compañía
Minera Seis) joint venture and later by Corumalqui and Gitennes has been well documented by
Blackwell (2009). Exploration of the Property during this period has been summarized by
Blackwell (2009) as follows.
 2003 – Work includes: commissioning a topographic map from air photographs (replaced
in 2008 by an IKONOS satellite image and topographic map), geological mapping of the
veins and property, establishing a picketed survey control grid (1000 by 2000m), B-
horizon soil sampling, geophysical surveying by Val d’Or IP (on 200m lines) and
9-1 MQes
magnetics (100m lines), differential GPS surveying of the survey control grid area,
rock geochemical sampling, and drilling 17 core holes totalling 2,282.6 metres.
 2004 – S u r v e y c o n t r o l g rid extended with i t s southwestern portion covered
by 3D – IP and magnetometer surveying (Fugro and SJV Geophysics), and some
additional soil and rock sampling. Followed by drilling 18 core holes totalling
2,619.4 metres.
 2005 – Meridian Gold relinquishes interest. Some geological mapping.
 2006 – Little activity, some geological mapping.
 2007 – Corimalqui commissioned a detailed project review and report by Valdivia.
 2008-2009 – Diamond drilling program including 12 core holes totalling 2,262.4
metres, metallurgical testing, IKONOS–based topographic mapping, mineralogy studies
and completion of the Valdivia report. The shaft was cleaned and underground
workings examined.
The results of the 2002 to 2009 exploration work were summarized by Blackwell (2009) as
follows.
“Mineralization at Urumalqui is known as “quartz – adularia” or “low sulphidation”

epithermal type mineralization. Two main vein orientations have been mapped on the
property. A NW-SE trend includes the Urumalqui Vein, La Mariscala West Vein, La
Mariscala South Vein, and the Penélope Vein. An east-west trend includes La Mariscala
East Vein, Candual East Vein, the Candual West vein zone, and the Candual Vein. These
other veins are found south of the Urumalqui Vein. Three distinct styles of epithermal
mineralization have been recognized from surface mapping and drilling on the property:
crustiform, breccia and envelope.
The Urumalqui Vein is a near-vertical zone, up to 20 metres wide, comprising a core of

one or two crustiform-banded quartz veins ranging from 0.5 to 11 metres aggregate
thickness. The vein is exposed at surface over a strike length of 1,500 metres. Average
strike is 125° throughout much of this length. The vein shows a number of minor,
northeast-stepping offsets that separate the vein into eight segments, ranging in length
from 40 metres to 400 metres. The Urumalqui vein is mineralogically simple, being
crustiform quartz with minor adularia and chalcedonic quartz. Gold occurs as grains of
native gold and electrum, while silver occurs in electrum and argentite, and both are
associated with fine-grained pyrite.
Gitennes’ exploration drilling at Urumalqui has been done on relatively widely-spaced

centres, from 45 to over 100 metres apart, and has concentrated upon the 1,000 metre-
long, south-eastern and central portion of the main Urumalqui vein. Despite having
drilled the vein to depths exceeding 200 metres below surface, the vein structure remains
strong and mineralized. All holes are in the “boiling zone”, based upon vein textures,
and the potential for good mineralization at deeper levels than those tested thus far is
considered to be good. Recent drill results also suggest that further drilling on the 400 to
500 metre-long north-western segment of the same vein structure is necessary, where
2003-2004 drilling may have been too shallow.
9-2 MQes
Metallurgical tests suggest that a combination of crushing and milling, followed by
gravimetric separation then cyanide leaching may be used to treat the Urumalqui Vein.
Flotation is another possibility, followed by cyanide extraction. This methodology and
approach is consistent with that used at numerous other mining sites in Peru that have
similar styles of mineralization. The metallurgical tests are very early-stage. Not
enough is known about the zones of mineralization to safely apply the results to larger
areas. It is also not known at this time whether higher yields will be achieved and it is
possible that other metallurgical methods may prove more attractive.”
There was no exploration field work during the period between the conclusion of the 2009
diamond drilling campaign in March, 2009 and the option agreement between Gitennes and
AndeanGold in April 2010.
9.3 2010 and 2011 Exploration Work
Following the signing and approval of the Gitennes–AndeanGold option agreement PeruGold, on
behalf of AndeanGold focused their exploration efforts on establishing detailed topographic
control with surveying of several topographic and geodetic benchmarks. This work was
followed shortly after by detailed surface geological mapping of the various known vein
structures and their mineralized alteration envelopes. The geological mapping was carried out in
November 2010 by John Bolaños and Juan Miranda, both experienced geologists (Bolaños,
2011).
Between November and December, 2010 John Bolaños and Juan Miranda re-logged the stored
drill cores from the 2003 to 2009 drilling programs undertaken by Corimalqui. This work was
conducted with the cataloguing and moving all the drill core to a new core storage building. The
results of this work were collated with those of the surface geological mapping work and a
property-wide geological setting was compiled.
During the 2010 exploration program, Mr. Roberto Condezo of SCA Consultores was hired to
investigate local community concerns with the exploration work and maintain the good relations
with the local land owners (Bolaños, 2011)
On March 28th, 2011 PeruGold commenced the 2011 diamond drilling campaign to confirm and
infill the previous drilling along the central and southeastern segments of the Urumalqui vein
structure, down to a depth of 200 metres so as to provide drill spacing of approximately 50
metres. Explomin del Peru S.A. of Lima, Peru was contracted by PeruGold to provide a DE710
Sandvik diamond drilling rig, drilling equipment and personnel capable of carrying out
approximately 5,000 metres of HQ-size core drilling.
On July 27th, 2011 PeruGold had completed 31 holes totalling 5,071 metres of diamond drilling.
Subsequent drill core logging, sampling and reclamation work on the disturbed drill site access
roads and pads extended the field work into August 2011 (Bolaños, 2011).
9-3 MQes
Figure 9-1: DE710 Sandvik Diamond Drilling Rig and Drilling Personnel
9.3.1 Summary of 2011 Exploration Results
The 2011 exploration program was largely focused on confirming and delineating the gold and
silver bearing mineralization along the Urumalqui vein structure. All of the drill holes were
collared to test the vein structure between the surface and the earlier Corimalqui drill holes. They
filled in the widely spaced drill sections within the central and southeastern segments to a depth
of 200 metres.
The 2011 drilling results confirmed the geometry and tenor of the Urumalqui vein indicated by
the previous drilling results, and showed that the vein structure has been locally displaced by
intersecting conjugate faults and fractures along its known strike length. In addition, the style of
mineralization and continuity of the vein structure at depths of 200m vertically indicate that the
vein structure may have considerable untested depth potential.
A detailed discussion of the 2002 to 2011 drilling campaigns is presented in Section 10.
9-4 MQes
Figure 9-2: View of the Cemented Collar for DDH URU 03-02.
View of the cemented collar for DDH URU 03-02 reclaimed during the Gitennes-Meridian joint
venture
Figure 9-3: View of the Cemented Collar for DDH PGUR 30 and 31
View of the cemented collar for DDH PGUR 30 and 31 reclaimed by PeruGold/AndeanGold
9-5 MQes
Figure 9-4: Drill Core Storage Building for the Urumalqui Project
9-6 MQes
SECTION 10
DRILLING
10.0 DRILLING
The following description of the 2003 to 2009 diamond drilling programs has been quoted
directly from the technical report by Blackwell (2009). Bolaños (2011) has provided the authors
with the following description of the 2011 diamond drilling program.
10.1 Drilling 2003 - 2009
According to Blackwell (2009),
“Seventeen holes totalling 2,282.6 metres were drilled on the Urumalqui Property from
October 15 to December 15, 2003. Bradley MDH S.A. provided a “Buggy Rig”, a
Longyear 44 modified so as to replace the skids with a two-wheeled frame that could be
pulled by a front-end loader for drill moves. The rig was excellent as no new roads were
required between drill sites, drill moves were very fast and there was minimal surface
disturbance. Upon completion, drill holes were marked with concrete monuments. Core
size was HQ (3 1/8 – inch diameter) for all holes. Core was placed in wooden core trays,
and transported to a core logging site in the village of Oromalqui for logging and
splitting.
Eighteen holes totalling 2,619.4 metres were drilled on the Urumalqui Property from
September 11 to November 30 2004. Sonda Sur Contratistas Generales S.A. provided a
Longyear 38 skid-mounted drill and a Volvo water truck for drill moves. Sondasur
provided a second skid-mounted rig, a Longyear 44, to drill a deeper, vertical hole
(URU04-31). Towards the end of the programme, both rigs were used to finish drilling
the remaining holes on the Urumalqui Vein. Only minor roadwork was required for set-
ups; surface disturbance was negligible. All drill cores were transported to a logging
site in the village of Oromalqui, and remain there in storage.
A further twelve holes totalling 2,262.4 metres were drilled on the Urumalqui vein from
January 28 to March 7, 2009 by Bradley-MDH del Peru SAC. A “Buggy Rig” similar to
the 2003 programme was used, but this time with a LF-70 core machine. All drill cores
were transported to a logging site in the village of Oromalqui, and remain there in
storage.
Drill hole collars have been cemented-in and marked with monuments. Following
completion of each phase of the drilling all drill pads were reclaimed.
Core recovery is generally good, except at the vein contacts where the bit grinds against
the harder rocks on its way into the vein, and then grinds and bends on its way out.
Recovered vein material can be very good over short intervals, but turn to sand and
gravel-sized rubble for several metres. It is preferable to intersect the vein as
perpendicular to its contacts as possible so that the drill bit bites into the harder quartz
vein “squarely” and does not turn or bind, which result in broken core and poor
recovery. As the vein dips south-easterly at 720 to 890 this means that the drill pads
have to be situated considerable distances from the outcrop trace of the vein for deep
10-1 MQes
holes, which makes for increasingly long (and expensive) holes as the vein is tested
deeper.”
Table 10-1: 2003 to 2009 Diamond Drilling Data (after Blackwell, 2009)
Drill Hole UTM (m) UTM (m) Elevation Length Azim Dip Year Target
No. Easting Northing (m) (m) (deg) (deg)
URU03-01 776024.59 9107638.83 3647.30 75.00 35.00 -45.00 2003 Urumalqui
URU03-02 776083.96 9107556.88 3653.15 100.75 35.00 -40.00 2003 Urumalqui
URU03-03 776157.10 9107481.10 3662.18 133.25 35.00 -45.00 2003 Urumalqui
URU03-04 776268.63 9107455.67 3677.23 71.35 35.00 -45.00 2003 Urumalqui
URU03-05 776659.20 9107153.68 3652.38 91.85 35.00 -45.00 2003 Urumalqui
URU03-06 776736.09 9107084.06 3647.66 100.25 35.00 -45.00 2003 Urumalqui
URU03-07 776298.00 9107341.91 3685.05 177.10 35.00 -65.00 2003 Urumalqui
URU03-08 776387.90 9107295.47 3681.12 189.10 35.00 -70.00 2003 Urumalqui
URU03-09 776467.97 9107234.07 3670.58 158.20 35.00 -65.00 2003 Urumalqui
URU03-10 775435.03 9107862.22 3546.67 169.95 35.00 -45.00 2003 IP Offset
URU03-11 775573.81 9107714.45 3561.94 150.05 35.00 -60.00 2003 IP Offset
URU03-12 775839.92 9107408.58 3624.11 141.45 10.00 -45.00 2003 IP Au GC
URU03-13 776723.87 9107063.71 3641.53 140.85 35.00 -45.00 2003 Urumalqui
URU03-14 776575.45 9107215.04 3655.29 150.15 35.00 -75.00 2003 Urumalqui
URU03-15 776467.97 9107234.07 3670.58 208.35 35.00 -72.00 2003 Urumalqui
URU03-16 776815.82 9107028.46 3633.57 119.15 35.00 -45.00 2003 Urumalqui
URU03-17 775953.48 9107719.13 3626.26 105.80 35.00 -76.00 2003 Urumalqui
URU04-18 775868.85 9107769.74 3611.60 55.80 35.00 -45.00 2004 Urumalqui
URU04-19 775931.65 9107685.15 3627.97 116.95 35.00 -55.00 2004 Urumalqui
URU04-20 776280.43 9107317.76 3682.96 245.00 35.00 -65.00 2004 Urumalqui
URU04-21 775767.17 9106822.56 3677.80 125.10 35.00 -45.00 2004 Mariscala W
URU04-22 775994.45 9106784.39 3639.82 126.00 215.00 -60.00 2004 Mariscala W
URU04-23 776127.32 9106612.09 3572.15 67.00 35.00 -46.00 2004 Mariscala W
URU04-24 776706.33 9106143.08 3498.21 180.00 180.00 -45.00 2004 Candual
URU04-25 776847.08 9106179.17 3485.08 140.00 140.00 -45.00 2004 Candual
URU04-26 777436.53 9106436.82 3529.95 68.75 180.00 -45.00 2004 Mariscala E
URU04-27 777381.35 9106474.91 3524.55 45.15 180.00 -55.00 2004 Candual
URU04-28 777381.35 9106474.91 3524.55 108.50 180.00 -55.00 2004 Candual
URU04-29 777040.72 9106912.89 3572.39 165.80 35.00 -45.00 2004 Urumalqui
URU04-30 776785.11 9106988.80 3626.05 183.05 35.00 -45.00 2004 Urumalqui
URU04-31 777736.40 9106579.22 3535.08 350.85 0.00 -90.00 2004 Urumalqui
URU04-32 776625.62 9107113.25 3645.94 163.50 35.00 -45.00 2004 Urumalqui
URU04-33 776547.74 9107174.19 3655.12 231.45 35.00 -75.00 2004 Urumalqui
URU04-34 776404.67 9107234.93 3672.98 234.00 35.00 -70.00 2004 Urumalqui
URU04-35 776273.15 9107390.85 3679.25 131.60 35.00 -45.00 2004 Urumalqui
URU08-36 777013.61 9106964.79 3586.88 73.40 20.00 -45.00 2008 Urumalqui
URU08-37 776938.46 9106949.99 3596.51 195.30 20.00 -55.00 2008 Urumalqui
URU08-38 776924.01 9106987.73 3612.44 115.50 20.00 -50.00 2008 Urumalqui
URU08-39 776739.45 9106946.52 3615.24 295.60 23.00 -45.00 2008 Urumalqui
URU08-40 776704.10 9107035.69 3634.70 205.30 35.00 -50.00 2008 Urumalqui
URU08-41 776647.62 9107060.17 3636.74 265.00 35.00 -60.00 2008 Urumalqui
URU08-42 776625.62 9107113.25 3645.94 205.00 35.00 -60.00 2008 Urumalqui
URU08-43 776547.74 9107174.19 3655.12 222.50 35.00 -65.00 2008 Urumalqui
URU08-44 776410.33 9107157.31 3663.93 299.00 35.00 -60.00 2008 Urumalqui
URU08-45 776311.23 9107219.91 3669.95 250.00 35.00 -49.00 2008 Urumalqui
10-2 MQes
URU08-46 776240.44 9107420.26 3674.90 160.00 35.00 -50.00 2008 Urumalqui
URU08-47 777101.78 9106892.15 3559.57 200.00 29.60 -43.83 2008 Urumalqui
10.2 Diamond Drilling 2011
Thirty-one core holes, totalling 5,071 metres, were drilled on the Property from March 28 to July
27, 2011. A DE710 Sandvik drilling rig, support equipment and personnel of Explomin del Peru
S.A., based in Lima, Peru, were contracted to complete the drilling contract. HQ-size (3 1/8 –
inch diameter) drill cores from all of the drill holes were placed in wooden core trays, and
transported to a core logging building in the village of Oromalqui for logging, sampling, and
later storage (see Figure 9-4).
Downhole surveying was carried out using a Reflex Ez-Trac downhole device and the drill
collars were located based on a detailed topographic survey done by Proyectistas Tecknicos,
based in Lima, Peru. Drill hole collars were cemented-in and marked with monuments, and all
surface disturbances were reclaimed and vegetated during and after the drilling program. The
HQ-core recovery was reportedly good (Bolaños, 2011).
Table 10-2: 2011 Diamond Drilling Data
PGUR-01 776311.89 9107357.77 3685.00 149.00 35.00 -51.60 2011 Urumalqui
PGUR-02 776344.27 9107318.00 3688.92 192.80 35.00 -70.00 2011 Urumalqui
PGUR-03 776405.53 9107236.15 3672.98 182.70 35.00 -61.49 2011 Urumalqui
PGUR-04 776508.89 9107203.86 3662.96 202.00 35.00 -66.45 2011 Urumalqui
PGUR-05 776508.89 9107203.86 3662.96 218.20 35.00 -75.46 2011 Urumalqui
PGUR-06 776610.80 9107171.87 3650.36 134.00 35.00 -49.14 2011 Urumalqui
PGUR-07 776587.51 9107142.19 3649.13 148.84 33.50 -52.25 2011 Urumalqui
PGUR-08 776587.51 9107142.19 3649.13 243.60 35.00 -64.19 2011 Urumalqui
PGUR-09 776697.27 9107120.12 3656.10 166.10 32.50 -47.49 2011 Urumalqui
PGUR-10 776697.27 9107120.12 3656.10 196.40 35.00 -64.45 2011 Urumalqui
PGUR-11 776647.60 9107060.20 3636.70 233.30 35.00 -47.94 2011 Urumalqui
PGUR-12 776786.49 9107071.88 3647.25 95.10 35.00 -45.00 2011 Urumalqui
PGUR-13 776786.49 9107071.88 3647.25 147.50 35.00 -64.10 2011 Urumalqui
PGUR-14 776747.95 9107016.84 3631.50 230.60 35.00 -49.11 2011 Urumalqui
PGUR-15 776840.10 9107059.30 3641.92 100.90 35.00 -51.14 2011 Urumalqui
PGUR-16 776861.03 9107004.87 3624.81 127.50 35.00 -46.51 2011 Urumalqui
PGUR-17 776861.03 9107004.87 3624.81 190.90 35.00 -60.50 2011 Urumalqui
PGUR-18 776927.07 9106981.85 3610.49 164.20 20.00 -60.00 2011 Urumalqui
PGUR-19 776984.56 9106983.26 3599.32 95.60 20.00 -47.00 2011 Urumalqui
PGUR-20 776984.56 9106983.26 3599.32 115.60 20.00 -66.60 2011 Urumalqui
PGUR-21 777017.96 9106933.03 3580.93 131.10 20.00 -50.20 2011 Urumalqui
PGUR-22 777091.30 9106960.39 3574.07 70.15 20.00 -50.51 2011 Urumalqui
PGUR-23 777134.57 9106928.93 3562.95 100.80 20.00 -46.34 2011 Urumalqui
PGUR-24 776344.27 9107318.00 3688.92 161.90 35.00 -51.28 2011 Urumalqui
PGUR-25 776344.27 9107318.00 3688.92 151.90 70.88 -46.19 2011 Urumalqui
PGUR-26 776508.89 9107203.86 3662.96 136.30 35.00 -51.74 2011 Urumalqui
10-3 MQes
PGUR-27 776463.94 9107139.66 3657.02 269.10 35.00 -60.00 2011 Urumalqui
PGUR-28 776557.62 9107099.35 3644.61 260.10 35.00 -60.00 2011 Urumalqui
PGUR-29 776861.03 9107004.87 3624.81 258.50 35.00 -67.70 2011 Urumalqui
PGUR-30 776427.34 9107305.08 3681.46 97.00 2.65 -45.00 2011 Urumalqui
PGUR-31 776427.34 9107305.08 3681.46 99.30 66.97 -45.00 2011 Urumalqui
10.3 Drilling Conclusions and Recommendations
The vein mineralization on the Property has now been tested by 78 diamond drill holes, totalling
12,578.69m, of which 67 holes, totalling 11,256.74m, have been completed along the main
Urumalqui vein structure.
Exploration results indicate that the Urumalqui vein is the dominant vein structure of the eight
veins now known on the Property. The Urumalqui vein has now been tested by NQ and HQsize
diamond drilling along a strike length of approximately 1,500m. Most of this drilling has
intersected the vein between 70 and 150m downdip from its surface exposure but a few holes
have penetrated the vein more than 200 metres vertically. There is still good vein continuity
both in width and grade in the deepest vein intercepts. All of this drilling has been carried out on
relatively widely-spaced sections 45 to 100 metres apart.
Drilling results indicate that the Urumalqui vein is open for extension both northwesterly and
especially southeasterly. Furthermore, its strong continuity at depth coupled with the textural
features of the vein mineralogy indicates that it may have significant untested depth potential.
Detailed in-fill drilling, especially along the central and southeastern segments, higher grade
portion of the Urumalqui vein structure, is recommended to improve interpretations of its
geometry and tenor for sections where the vein has been displaced by intersecting normal
faulting.
Both Blackwell (2009) and Bolanos (2011) report that drill core recoveries were quite good with
the possible exception of along host rock - vein contacts where the drill bit tends to grind the
core. Future drilling should continue trying different drill bit configurations and drilling media
to improve core recoveries, especially within the vein envelopes where there may be significant
disseminated mineralization.
Future drilling might be conducted with drilling equipment capable of recovering NQ2 or better
HQ size core to minimize any core loses on the face of the core and along fractures with
infillings of friable mineralization.
10-4 MQes
Figure 10-1: Diamond Drill Hole Plan – Urumalqui Vein Structure
10-5 MQes
Figure 10-2: Vertical Cross Section 1250 NW
10-6 MQes
10-7 MQes
10-8 MQes
SECTION 11
SAMPLE PREPARATION, ANALYSES AND SECURITY
11.0 SAMPLE PREPARATION, ANALYSES AND SECURITY
11.1 2003 – 2009 Exploration Work
The following sample preparation, analytical procedures and security measures were conducted
by Gitennes during their 2003, 2004 and 2009 exploration programs and documented in the
technical report by Blackwell (2009).
11.1.1 2003 – 2009 Sample Preparation
According to Blackwell (2009), “No sample preparation was carried out in the field. All rock,
soil and core samples were shipped by ground transportation or submitted directly to the ALS
Chemex Laboratory in Lima (ISO 9001:2000 accredited) for sample preparation and analyses.”
11.1.2 2003 – 2009 Sample Analyses and Assays
According to Blackwell (2009), “Initially surface samples and some cores were analysed for
gold and silver plus a suite of trace elements. Unfortunately budget constraints limited this,
particularly for drill core samples.
All were analysed for gold using the AA24 preparation protocol, employing a 25 or 50-
gram nominal sample weight with gold analysis by fire assay and an AAS (atomic
absorption spectroscopy) finish. Other elements are determined using the ME-ICP41
method, which utilizes a 10-gram sample, aqua regia digestion and an ICP-MS
(Inductively Coupled Plasma Mass Spectrometry) determination. Silver values over 100
g/t was then analysed using the AA46 method. Using the Ag-AA46 analytical procedure,
higher grades (up to 1,500ppm (50 oz/t)) of silver can be digested with aqua regia. This
method is suitable for most silver ores, and it is less expensive and quicker than fire
assay procedures but equally accurate. For soil samples, the -80 mesh fraction was
analysed by the AA24 and ME-ICP41 protocol.
Check analyses were performed at SGS del Peru S.A.C. (“SGS”) and CIMM Peru S.A. (a
division of Centro de Investigación Minera y Metalúrgica de Chile) (“CIMM”). Both
labs are ISO 9001:2000 certified. Analytical techniques are similar to those at ALS
Chemex. Some metallurgy-related tests were done at Alex Stewart (Assayers) del Peru (a
division of Stewart Group) and at the CH Plenge & Cia. SA., both in Lima. These are
highly-regarded independent
facilities. The writer is not certain of their accreditation status.
All analytical data is received directly as electronic files that are sent from ALS Chemex,
CIMM or SGS to Gitennes and Corimalqui. All the data is reviewed by geologists
working for the companies, and by the writer. An exhaustive review and audit was
performed by Valdivia (2008). In order to confirm the reproducibility of the drill assay
results the company periodically submits sample pulps and sample rejects (which are re-
homogenized and pulverized into new pulps) from drill core and surface sample to SGS
and/or CIMM.”
11-1 MQes
11.1.3 2003 – 2009 Sample Security
According to Blackwell (2009), “No extraordinary security measures were put in place for any
sample shipments.”
11.2 2011 Diamond Drilling Program
The following text applies to the procedures utilized during the 2011 drilling program for the
sample preparation, analyses and security, based upon information provided to the authors by
Bolanos (2011). No aspect of the sample preparation or analysis was reportedly conducted by an
employee, officer, director or associate of PeruGold or AndeanGold.
11.2.1 2011 Sample Preparation
The 2011 drilling program carried out by PeruGold utilized drill core handling, logging,
sampling, QA/QC, security and storage procedures compliant with current industry-standard
practises and within NI 43-101 guidelines.
The drill core was collected in secured wooden boxes at each drill site and transported by either
the drillers or the supervising geologist to PeruGold’s core logging facility in the village of
Oromalqui. There, the core boxes were opened, the core was gently washed clean of drilling
fluids, and the drill core was accurately measured to determine the core recoveries.
After core recovery measurements and geotechnical logging the drill core was geologically
logged for its lithology, structure, alteration and mineralization. These observations were
recorded as written notes on pre-prepared log sheets. During the geological logging, the
geologist marked the intervals of drill core that should be sampled while respecting lithological
contacts and structural features.
The drill core was cut in half lengthwise using a diamond rock saw for those sections deemed
worthy of sampling and analysis. One half of the sawn drill core was placed in a 6-mil sample
bag and the other half of the drill core was returned to its correct position in the core box. A
unique sample assay tag was placed in each core sample bag before the bag was securely sealed.
The drill hole number, drilling interval, sample assay tag number were recorded for later
transcribing to Chain of Custody documents that accompanied the samples to the assay
laboratory. Quality control standard, blank and duplicate samples were inserted into the sample
sequence at a rate of 1 standard, 1 blank and 1 duplicate per 30 drill core samples, representing
approximately five percent of the total samples.
After the drill core had been properly logged and sampled, the hand written observations were
entered into a matrix style spreadsheet for data entry. The core boxes were labelled and securely
stored in core racks within the logging and storage building.
11-2 MQes
Sealed and documented drill core samples were later placed in larger ‘rice’ bags which were
securely sealed and stored in a locked room within the PeruGold project offices prior to their
transportation to the assay laboratory.
11.2.2 2011 Sample Analyses and Assays
All of the drill core and inserted QA/QC samples were shipped to Inspectorate Services Peru
S.A.C. (‘Inspectorate’) in Lima, Peru for sample preparation and analysis or assay. These
samples were securely sealed and accompanied with shipping documents. There were no
reported discrepancies between the sealed samples and those received and reported by
Inspectorate.
Inspectorate Services Peru, S.A.C. is a member of the Bureau Veritas Group of Companies and
has the global infrastructure and expertise to service the exploration, mine assaying and
metallurgical testing projects. According to its website (www.inspectorate.com/peru), its current
accreditation is ISO 9001:2008 No. 39041.
Drill core samples were weighed, and dried prior to crushing to 70% less the ¼ inch diameter.
The primary crushed material was then further crushed in roll crushers to 90% less than 10 mesh.
A 150 to 180 gram portion of the crushed material from each sample was extracted using a Jones
riffle. The remaining ‘reject’ crushed rock was returned to its original plastic sample bag and
packed in containers for return to PeruGold at periodic intervals. The split sample portion was
then pulverized by a ring and puck pulverizer to 95% less than 140 mesh, and a 50 gram portion
was extracted to use as a sample aliquot.
The drill core samples were analysed using Inspectorate procedures ISP-138, ISP-330 and ISP-
143 for silver, gold and 32 trace elements respectfully. The gold assays were conducted using
Inspectorate ISP-330 procedures including four-acid digestion, standard fire assay fusion and
atomic absorption finish procedures. If a sample returned a gold value greater than 5 gpt then the
sample pulp was re-assayed using fire assay fusion and gravimetric finish procedures.
The silver and 32 trace elements were analysed following Inspectorate ISP-138 and -143
procedures respectively. These procedures included four acid digestion, and Induced Coupled
Plasma (‘ICP’) finish procedures. Any silver values in excess of 100 gpt were re-analysed using
standard fire assay fusion and atomic absorption finish procedures. Inspectorate routinely
performs its own quality assurance/quality control (‘QA/QC’) procedures on approximately five
per cent of the total samples submitted for analysis.
Appendix II of this report contains the sample preparation and analytical procedures utilized by
Inspectorate on the drill core and QA/QC samples.
11.2.3 2011 Sample Security
All of the 2011 drill core samples were stored in a locked holding room prior to shipping them to
the assay laboratory. Furthermore, all of the samples were securely sealed and Chain of Custody
documents accompanied all shipments. The analytical results from these samples were received
11-3 MQes
by authorized PeruGold personnel using secure digital transfer transmissions, and these results
were restricted to qualified PeruGold and AndeanGold personnel prior to their publication.
11-4 MQes
SECTION 12
DATA VERIFICATION
12.0 DATA VERIFICATION
12.1 Electronic Database Verification
The authors performed a review of the drill hole data by comparing certified gold and silver
analytical and assay results with values entered into the PeruGold electronic database. The
authors did not completely check all of the 2003 to 2009 drill hole data because this historical
drilling data has been documented and qualified by Blackwell (2009).
Entry errors were identified in the 2011 drilling data and corrected with the certified analytical or
assay results. When there were a number of analytical procedures performed to check over-limit
analytical results, the most accurate procedure was considered the ‘final’ value (i.e. Fire
Assay/Gravimetrics superseded Fire Assay/Atomic Absorption which superseded ICP values).
All ‘below detection limit’ analytical values were assigned one-half the lower detection limit
value for the purposes this mineral resource estimate.
12.2 Quality Assurance/Quality Control Procedures and Results
Mr. James McCrea analysed the quality assurance and quality control (‘QA/QC’) data from the
2011 drill program, and reviewed the QA/QC data from Gitennes’ 2003, 2004 and 2008 drill
programs. Gitennes did not implement a QA/QC program for any of their drilling campaigns but
later submitted check assay samples to two other laboratories. Scatter plots of the 2003 and 2004
external laboratory check assays were included the non-independent 43-101 technical report by
Blackwell (2008). No other analysis or review of this data was reported.
The primary assay laboratory used by Gitennes Exploration was ALS Chemex and the check
assay laboratories were CIMM Peru and SGS Peru. AndeanGold used Inspectorate as the
primary assay laboratory and ALS Chemex as the check assay laboratory.
12.2.1 2011 Standard Reference Material
AndeanGold used three different standard reference material (‘SRM’) with certified values for
gold (3) and silver (2). Table 12-1 contains a list of the SRM samples used and their
corresponding grade ranges. The SRM samples were manufactured by WCM Minerals of
Burnaby, BC. and delivered in 60 gram tin-top pouches.
Inspectorate Laboratories of Lima, Peru was the primary assay laboratory for the 2011 drill core
and SRM preparation and assaying. The samples were analyzed using a fire assay digestion
method with an atomic absorption finish and over limit samples were re-assayed using a
gravimetric finishing method for gold. Silver was analysed using ICP and Atomic Absorption
analytical procedures. The SRM results are charted in Figures 12-1 to 12-5.
AndeanGold submitted 62 SRM samples for analysis with the drill core. The SRM samples were
analyzed for gold and silver. The average failure rate for the gold standards analyzed was 21.0
percent, based on a 3 standard deviations limit and this increases to 37.1%, based on a 2 standard
deviations limit. Failure rates for individual standards analyzed gold ranged from 9% (PM1129)
12-1 MQes
to 61.9% (PM1138) using 2 standard deviations. All the silver standards, however, had only one
SRM failure and this looks like a sample mix up based on the grade difference. The gold SRM
PM129 had 2 failures and they also look like sample mix ups.
Table 12-1: 2011 SRM Samples
Gold
SRM ID 1*SD 2*SD 3*SD No. Analyzed
Value (Au ppm)
Low High Low High
PM436 0.39 0.018 0.354 0.426 0.335 0.445 19
PM1129 3.46 0.169 3.122 3.798 2.953 3.967 22
PM1138 1.45 0.064 1.321 1.579 1.257 1.643 21
Silver
SRM ID 1*SD 2*SD 3*SD No. Analyzed
Value (Ag ppm)
Low High Low High
PM436 No Certified value
PM1129 34 1.68 30.64 37.36 28.96 39.04 21
PM1138 104 4.24 95.53 112.47 91.29 116.71 22
This failure rate is very high and no corrective measures were taken by the company. Further
action needs to be taken to remedy these problems and confirm the assay values reported for this
part of the drill program. Recommendations to correct the high rate of SRM failures would be to
prepare a site specific standard.
The current assay protocol has the standards submitted to the lab as pulp bags with bags of split
drill core. This is a non-blind submission and any possible bias created by this type of non-blind
submission has yet to be assessed. Pulp Duplicates (5%) sent back to the primary lab with the
included standards and new standards would check for a possible bias from the submission of
pulp bag standards. The charted results from a totally blind submission would show any bias if
pulp bags had been treated differently.
WMC Minerals of Burnaby, BC fabricated the 3 SRM samples used by AndeanGold. The
standards were all certified for gold and 2 for silver as well as base metals. WMC Minerals sells
a variety of SRM’s for gold, silver, copper, PGE and base metal projects.
The following graphs of the SRM’s show the certified value with +/- 2 SD and 3SD. Certified
values in blue, 2SD in red and 3SD in yellow.
12-2 MQes
Figure 12-1: Standard PM436 – Au ppm Assay Results
Urumalqui Standard PM436 Gold
0.45
0.43
Gold Grade (ppm)
0.41
0.39
0.37
0.35
0.33
0.31
0.29
0.27
0.25
0 5 10 15 20
Number of Samples
PM436 shows 3 failures over 3 standard deviations and only one result above the certified value.
3.50
3.45
Gold Grade (ppm)
3.40
3.35
3.30
3.25
3.20
2 Samples below range
3.15
3.10
0 5 10 15 20 25
Number of Samples
PM1129 Gold shows 2 failures over 3 standard deviations and no samples reporting above the
certified value.
12-3 MQes
Figure 12-3: Standard PM1129 – Ag ppm Assay Results
Urumalqui Standard PM1129 Silver
45.0
43.0
Silver Grade (ppm)
41.0
39.0
37.0
35.0
33.0
31.0
29.0
27.0
25.0
0 5 10 15 20 25
Number of Samples
PM1129 Silver shows one sample failure.
1.50
1.45
Gold Grade (ppm)
1.40
1.35
1.30
1.25
1.20
1.15
0 5 10 15 20 25
Number of Samples
PM1138 Gold shows 7 failures over 3 standard deviations and no sample reporting above the
certified value.
12-4 MQes
Figure 12-5: Standard PM1138 – Ag ppm Assay Results
Urumalqui Standard PM1138 Silver
113.0
111.0
Silver Grade (ppm)
109.0
107.0
105.0
103.0
101.0
99.0
97.0
95.0
0 5 10 15 20 25
Number of Samples
PM1138 Silver shows no failures.
12.2.2 2011 Blank Material
AndeanGold Staff have been using barren sections of Urumalqui drill core as blank material for
the QA/QC program. During the drilling program 63 blanks were analysed. The blanks are
inserted on a 1:10 to 1:20 basis. The assay results of the blank material show that there is some
minor gold and silver contamination of the blank material in one part of the drill program. The
results of the analysis of the blanks are in Figures 12-6 and 12-7.
Figure 12-6: Blank Materials – Au ppm Assay Results
Urumalqui Blanks Gold (ppm)
0.18
0.16
Gold Grade (ppm)
0.14
0.12
0.10
0.08
0.06
0.04
0.02
0.00
0 10 20 30 40 50 60 70
Number of Samples
12-5 MQes
Figure 12-7: Blank Materials – Ag ppm Assay Results
Urumalqui Blanks Silver (ppm)
18.0
16.0
Silver Grade (ppm)
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
0 10 20 30 40 50 60 70
Number of Samples
12.2.3 2011 Field Duplicates
Andean Gold submitted quartered drill core as duplicate samples for assaying during the 2011
drilling program. Sixty-three field duplicates were inserted into the drilling sample sequence.
These samples were assayed in a similar manner as the other drill core samples using Fire Assay
digestion procedures with an atomic absorption or gravimetric finish for gold, and ICP
procedures or atomic absorption techniques for silver. Figures 12-8 and 12-9 are the scatter plots
of the original samples verses the duplicate samples for gold and silver. The blue line is an ideal
1:1 reference. The dashed red line is the trend line of the data.
The gold graph shows some higher grade scatter above and below the 1:1 line with the trend line
near 1:1. Silver shows more scatter with the original samples reporting higher than the
duplicates and this is reflected by the trend line. The drop of the trend line appears to be mainly
caused by two high grade samples reporting higher than the duplicates.
12-6 MQes
Figure 12-8: Field Duplicate Samples – Au ppm Scatter Plot
Urum alqui Gold Field Duplicates
3.0
Duplicate - Gold (ppm)
2.5
2.0
1.5
1.0
0.5
0.0
0.0 0.5 1.0 1.5 2.0 2.5 3.0
Original - Gold (ppm )
Figure 12-9: Field Duplicate Samples – Ag ppm Scatter Plot
Urum alqui Silver Field Duplicates
1000.0
Duplicate -Silver (ppm)PPM
800.0
600.0
400.0
200.0
0.0
0.0 200.0 400.0 600.0 800.0 1000.0
Original - Silver (ppm )
Figures 12-10 and 12-11 are plots of the mean of the duplicate pairs plotted against the Absolute
Difference. The gold chart shows a small range of low grade variation with some mid and high
grade scatter. The silver chart has a tighter distribution with similar mid and high grade scatter.
12-7 MQes
Figure 12-10: Field Duplicate Samples – Au ppm Difference Chart
Difference vs. Mean of Duplicates - Gold
1.40
Duplicates - Gold (ppm)
Absolute Difference of
1.20
1.00
0.80
0.60
0.40
0.20
0.00
0.00 0.50 1.00 1.50 2.00 2.50
Mean of Duplicates - Gold (ppm )
Figure 12-11: Field Duplicate Samples – Ag ppm Difference Chart
Difference vs. Mean of Duplicates - Silver
160.0
Duplicates - Silver (ppm)
140.0
120.0
100.0
80.0
60.0
40.0
20.0
0.0
0.0 200.0 400.0 600.0 800.0 1000.0
Mean of Duplicates - Silver (ppm )
The duplicate data was analysed by methods described by Thompson and Howarth (1976). The
results are shown as Precision Charts for gold and silver in Figures 12-12 and 12-13. The
precision charts are derived from the slope and y-intercept of the Thompson-Howarth Duplicate
Analysis charts shown in Figures 12-14 and 12-15. These plots are used to check laboratory
precision. The field duplicate samples show good precision.
12-8 MQes
Figure 12-12: Thompson-Howarth Precision for Field Duplicates - Au ppm
Thom pson-How arth Precision vs Concentration Gold

20
15
Precision (%)
10
0
0.0 0.5 1.0 1.5 2.0 2.5
Concentration - Gold (ppm )
Figure 12-13: Thompson-Howarth Precision for Field Duplicates - Ag ppm
Thom pson-How arth Precision vs Concentration Silver

70
60
Precision (%)
50
40
30
20
10
0
0 200 400 600 800 1000
Concentration - Silver (ppm )
12-9 MQes
Figure 12-14: Thompson-Howarth Duplicate Analysis for Field Duplicates - Au ppm
Thom pson-How arth Plot, Duplicate Analysis, Gold
0.50
Median Difference of Gps of
0.45
0.40
y = 0.7061x + 0.0085
0.35
0.30
0.25
0.20
0.15
0.10
0.05
0.00
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70
Mean of Gps of Duplicates - Gold (ppm )
Figure 12-15: Thompson-Howarth Duplicate Analysis for Field Duplicates - Ag ppm
Thom pson-How arth Plot, Duplicated Anlysis, Silver
180
160
140
y = 0.8858x - 0.1564
120
100
80
60
40
20
0
0 50 100 150 200
Mean of Gps of Duplicates - Silver (ppm )
12.2.4 2011 Check Assays
Check assay samples were submitted to outside laboratories during the 2003, 2004, 2008 and
2011 drill programs. The scatter plots for the 2003 and 2004 drill programs were included in
Blackwell, 2009. The following scatter plots are included for documentation.
12-10 MQes
12.2.5 2003 and 2004 Drilling Programs by Gitennes Exploration
The gold and silver pulp duplicate scatter plots for the 2003 and 2004 drilling programs are
shown in Figures 12-16 to 12-19. The assay results from the two check assay laboratories,
CIMM Peru and SGS Peru, have been combined in the following plots. All of the scatter plots
show a moderate to fair degree of scatter with the most on the scatter plot for gold between ALS
Chemex and CIMM Peru. The blue line is an ideal 1:1 reference, and the dashed red line is the
trend line of the data. Add in Reference to Figure 7-7
Figure 12-16: 2003/04 Pulp Duplicates ALS vs. CIMM – Au ppm Scatter Plot
Urum alqui ALS Chem ex vs CIMM Peru Gold
3.0
Duplicate - Gold (ppm)
2.5
2.0
1.5
1.0
0.5
0.0
0.0 0.5 1.0 1.5 2.0 2.5 3.0
Original- Gold (ppm )
Figure 12-17: 2003/04 Pulp Duplicates ALS vs. CIMM – Ag ppm Scatter Plot
Urum alqui ALS Chem ex vs CIMM Peru Silver
1000.0
Duplicate - Silver (ppm)
800.0
600.0
400.0
200.0
0.0
0.0 200.0 400.0 600.0 800.0 1000.0
12-11 MQes
Figure 12-18: 2003/04 Pulp Duplicates ALS vs. SGS – Au ppm Scatter Plot
Urum alqui ALS Chem ex vs SGS Peru, Gold
6000
Duplicates - Gold (ppb)
5000
4000
3000
2000
1000
0
0 1000 2000 3000 4000 5000 6000
Original - Gold (ppb)
Figure 12-19: 2003/04 Pulp Duplicates ALS vs. SGS – Ag ppm Scatter Plot
Urum alqui ALS Chem ex vs SGS Peru, Silver
600
500
400
300
200
100
0
0 100 200 300 400 500 600
Figures 12-20 to 12-23 are plots of the mean of the duplicate pairs plotted against the Absolute
Difference for 2003 and 2004 drill programs to two assay laboratories. The gold chart shows a
small range of low grade variation with some mid grade scatter. The silver chart shows some
low to high grade scatter.
12-12 MQes
Figure 12-20: 2003/04 Pulp Duplicates ALS vs. CIMM – Au ppm Difference Chart
Difference vs Mean of Duplicates ALS Chem ex vs CIMM

Peru, Gold
Duplicates Gold (ppm) 3.0
2.5
2.0
1.5
1.0
0.5
0.0
0.0 0.5 1.0 1.5 2.0 2.5 3.0
Figure 12-21: 2003/04 Pulp Duplicates ALS vs. CIMM – Ag ppm Difference Chart
Difference vs Mean of Duplicates ALS Chem ex vs CIMM

Peru, Silver
120
Duplicates Silver (ppm)
100
80
60
40
20
0
0 200 400 600 800 1000
12-13 MQes
Figure 12-22: 2003/04 Pulp Duplicates ALS vs. SGS – Au ppm Difference Chart
Difference vs Mean of Duplicates

ALS Chem ex vs SGS Peru, Gold
1200
Duplicates Gold (ppm)
1000
800
600
400
200
0
0 1000 2000 3000 4000 5000 6000
Mean of Duplicates - Gold (ppb)
Figure 12-23: 2003/04 Pulp Duplicates ALS vs. SGS – Ag ppm Difference Chart

ALS Chem ex vs SGS Peru, Silver
60.0
50.0
40.0
30.0
20.0
10.0
0.0
0 100 200 300 400 500 600
The pulp duplicate data was analysed by methods described by Thompson and Howarth (1976).
The results are shown as Precision Charts for gold and silver in Figures 12-24 to 12-27. The
precision charts are derived from the slope and y-intercept of the Thompson-Howarth Duplicate
Analysis charts shown in Figures 12-28 to 12-31. These plots are used to check laboratory
precision. The pulp duplicate samples show good precision.
12-14 MQes
Figure 12-24: T-H Precision for 2003/04 Pulp Duplicates ALS vs. CIMM - Au ppm

60
50
Precision (%)
40
30
20
10
0
0.0 0.5 1.0 1.5 2.0 2.5
Figure 12-25: T-H Precision for 2003/04 Pulp Duplicates ALS vs. CIMM - Ag ppm

70
60
Precision (%)
50
40
30
20
10
0
0 200 400 600 800 1000
12-15 MQes
Figure 12-26: T-H Precision for 2003/04 Pulp Duplicates ALS vs. SGS - Au ppm

100
90
80
Precision (%)
70
60
50
40
30
20
10
0
0.0 0.5 1.0 1.5 2.0 2.5
Concentration - Gold (ppb)
Figure 12-27: T-H Precision for 2003/04 Pulp Duplicates ALS vs. SGS - Ag ppm
60
50
Precision (%)
40
30
20
10
0
0 200 400 600 800 1000
12-16 MQes
Figure 12-28: T-H Duplicate Analysis for 2003/04 Pulp Duplicates ALS vs. CIMM – Au ppm

3.500
3.000
y = 0.9342x - 0.0269
2.500
2.000
1.500
1.000
0.500
0.000
0.000 0.500 1.000 1.500 2.000 2.500 3.000 3.500
Figure 12-29: T-H Duplicate Analysis for 2003/04 Pulp Duplicates ALS vs. CIMM - Ag ppm

600
500
y = 0.9243x - 0.606
400
300
200
100
0
0 100 200 300 400 500 600
12-17 MQes
Figure 12-30: T-H Duplicate Analysis for 2003/04 Pulp Duplicates ALS vs. SGS - Au ppm
3500
3000
y = 0.9128x + 3.8866
2500
2000
1500
1000
500
0
0 1000 2000 3000 4000
Mean of Gps of Duplicates, Gold (ppb)
Figure 12-31: T-H Duplicate Analysis for 2003/04 Pulp Duplicates ALS vs. SGS - Ag ppm
450
y = 0.9765x - 2.4224
400
350
300
250
200
150
100
50
0
0 100 200 300 400 500
12.2.6 2008 Drilling Program by Gitennes Exploration
The gold and silver scatter plots for pulp duplicates from the 2008 drilling program are shown in
Figures 12-32 to 12-35. CIMM Peru and SGS Peru were both used for assaying during this
drilling program. The scatter plots all show a small degree of high grade scatter and the
occasional outlier. The blue line is an ideal 1:1 reference, and the dashed red line is the trend
line of the data.
12-18 MQes
Figure 12-32: Scatter Plot for 2008 Pulp Duplicates ALS vs. CIMM – Au ppm
Urum alqui ALS Chem ex vs CIMM Peru, Gold
7000
6000
5000
4000
3000
2000
1000
0
0 1000 2000 3000 4000 5000 6000 7000 8000
Figure 12-33: Scatter Plot for 2008 Pulp Duplicates ALS vs. CIMM – Ag ppm
Urum alqui ALS Chem ex vs CIMM Peru, Silver
600
500
400
300
200
100
0
0 100 200 300 400 500 600
12-19 MQes
Figure 12-34: Scatter Plot for 2008 Pulp Duplicates ALS vs. SGS – Au ppm
Urum alqui ALS Chem ex vs SGS Peru, Gold
8000
7000
6000
5000
4000
3000
2000
1000
0
0 1000 2000 3000 4000 5000 6000 7000 8000
Figure 12-35: Scatter plot for 2008 Pulp Duplicates ALS vs. SGS – Ag ppm
Urum alqui ALS Chem ex vs SGS Peru, Silver
600
500
400
300
200
100
0
0 100 200 300 400 500 600
Figures 12-36 to 12-39 are plots of the mean of the pulp duplicate pairs plotted versus the
Absolute Difference for the assay results received the two laboratories used during 2008 drilling
program.
12-20 MQes
Figure 12-36: Difference Chart for 2008 Pulp Duplicates ALS vs. CIMM – Au ppm

ALS Chem ex vs CIMM Peru, Gold
1400
Duplicates Gold (ppm)
1200
1000
800
600
400
200
0
0 1000 2000 3000 4000 5000 6000 7000
Figure 12-37: Difference Chart for 2008 Pulp Duplicates ALS vs. CIMM – Ag ppm

ALS Chem ex vs CIMM Peru, Silver
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
0 100 200 300 400 500 600
12-21 MQes
Figure 12-38: Difference Chart for 2008 Pulp Duplicates ALS vs. SGS – Au ppm

ALS Chem ex vs SGS Peru, Gold
Duplicates Gold (ppm) 900

800
700
600
500
400
300
200
100
0
0 1000 2000 3000 4000 5000 6000 7000 8000
Figure 12-39: Difference Chart for 2008 Pulp Duplicates ALS vs. SGS – Ag ppm

ALS Chem ex vs SGS Peru, Silver
250.0
200.0
150.0
100.0
50.0
0.0
0 100 200 300 400 500 600
Precision Charts for gold and silver are in Figures 12-40 and 12-41. No precision charts were
produced for the 2008 samples that were sent to CIMM Peru because the data set was too small
to produce a reliable duplicate analyses chart. The Thompson-Howarth Duplicate Analysis
charts are shown in Figures 12-42 and 12-43. The pulp duplicate samples show good precision.
12-22 MQes
Figure 12-40: T-H Precision for 2008 Pulp Duplicates ALS vs. SGS - Au ppm

100
90
80
Precision (%)
70
60
50
40
30
20
10
0
0.0 0.5 1.0 1.5 2.0 2.5
Concentration - Gold (ppb)
Figure 12-41: T-H Precision for 2008 Pulp Duplicates ALS vs. SGS - Ag ppm

100
90
80
Precision (%)
70
60
50
40
30
20
10
0
0 200 400 600 800 1000
12-23 MQes
Figure 12-42: T-H Duplicate Analysis for 2008 Pulp Duplicates ALS vs. SGS - Au ppm
3000
2500
y = 0.9433x - 0.2422
2000
1500
1000
500
0
0 500 1000 1500 2000 2500 3000
Mean of Gps of Duplicates, Gold (ppb)
Figure 12-43: Thompson-Howarth Duplicate Analysis for 2008 Pulp Duplicates ALS vs. SGS - Ag ppm
250
y = 0.9537x - 1.0649
200
150
100
50
0
0 50 100 150 200 250
12.3 2011 Drilling Program by AndeanGold
The gold and silver scatter plots for 2011 pulp duplicates are shown in Figures 12-44 and 12-45.
The ALS Chemex assay laboratory was utilized for the check assays. The gold scatter plot
shows a small amount of high grade scatter, and the silver plot shows one outlier that appears to
affect the trend line but may be a sample mix-up. The blue line is an ideal 1:1 reference, and the
dashed red line is the trend line of the data.
12-24 MQes
Figure 12-44: Scatter Plot of 2011 Pulp Duplicates Inspectorate vs. ALS – Au ppm
Check Assays ALS Chem ex - Gold
10.00
9.00
8.00
Duplicate Gold PPM
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
0.00 2.00 4.00 6.00 8.00 10.00
Original Gold PPM
Figure 12-45: Scatter Plot of 2011 Pulp Duplicates Inspectorate vs. ALS – Ag ppm
Check Assays ALS Chem ex - Silver
2000
1800
Duplicate Silver PPM
1600
1400
1200
1000
800
600
400
200
0
0 500 1000 1500 2000
Original Silver PPM
Figures 12-46 and 12-47 are plots of the mean of the duplicate pairs plotted against the Absolute
Difference for 2011 drilling program. The gold chart shows a small amount of scatter, and the
silver chart shows slightly more scatter the gold.
12-25 MQes
Figure 12-46: Difference Chart for 2011 Pulp Duplicates Inspectorate vs. ALS – Au ppm
Difference vs Mean of Duplicates Inspectorate vs ALS

Chem ex, Gold
Duplicates Gold (ppm) 3.0

2.5
2.0
1.5
1.0
0.5
0.0
0.0 0.5 1.0 1.5 2.0 2.5 3.0
Figure 12-47: Difference Chart for 2011 Pulp Duplicates Inspectorate vs. ALS – Ag ppm
Difference vs Mean of Duplicates Inspectorate vs ALS

Chem ex, Silver
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
0 2 4 6 8 10
Precision Charts for gold and silver are in Figures 12-48 and 12-49. The Thompson-Howarth
Duplicate Analysis charts are shown in Figures 12-50 and 12-51. The pulp duplicate samples
show good precision.
12-26 MQes
Figure 12-48: T-H Precision for 2011 Pulp Duplicates Inspectorate vs. ALS SGS - Au ppm

80
70
60
Precision (%)
50
40
30
20
10
0
0.0 0.5 1.0 1.5 2.0 2.5
Figure 12-49: T-H Precision for 2011 Pulp Duplicates Inspectorate vs. ALS SGS - Ag ppm

25
20
Precision (%)
15
10
0
0 200 400 600 800 1000
12-27 MQes
Figure 12-50: T-H Duplicate Analysis for 2011 Pulp Duplicates Inspectorate vs. ALS SGS – Au ppm

4.000
Median Difference of Gps of 3.500
y = 0.9457x - 0.0338
3.000
2.500
2.000
1.500
1.000
0.500
0.000
0.000 1.000 2.000 3.000 4.000
Figure 12-51: T-H Duplicate Analysis for 2011 Pulp Duplicates Inspectorate vs. ALS SGS – Ag ppm

600
y = 0.9517x - 0.0451
500
400
300
200
100
0
0 100 200 300 400 500 600
12.4 Independent Site Visit and Verification Sampling
Mr. J. McCrea, P. Geo., visited the Property on August 3, 2011 during which time he examined
and collected four (4) samples from the stored core of four different diamond drill holes, and
examined and collected four (4) samples of the mineralization from outcrops of the Urumalqui
vein structure (See Figure 7-7). He also reviewed all aspects of the historical exploration work
including: diamond drilling; geological mapping; sampling, security and shipping procedures;
surveying methods and documentation procedures.
12-28 MQes
The verification samples were properly bagged, labelled, described and delivered by the Mr. J.
McCrea, P.Geo. to Inspectorate Services Peru, S.A.C. in Lima, Peru. Inspectorate Services Peru,
S.A.C. is a member of the Bureau Veritas Group of Companies and has the global infrastructure
and expertise to service the exploration, mine assaying and metallurgical testing projects.
According to its website (www.inspectorate.com/peru), its current accreditation is ISO
9001:2008 No. 39041.
There the samples were dried, weighed and then crushed and pulverized to 95% of the material
less than 140 mesh. The pulverized material was then split and a 30-gram portion was bagged
for analysis.
The eight verification samples were initially analysed for gold plus 32 other elements, including:
silver, aluminum, arsenic, barium, bismuth, calcium, cadmium, cobalt, chrome, copper, iron,
mercury, potassium, lanthanum, magnesium, manganese, molybdenum, sodium, nickel,
phosphorus, lead, sulphur, antimony, selenium, tin, strontium, tellurium, titanium, thallium,
vanadium, tungsten, and zinc.
Initial gold values were determined by analysing a 30 gram sample split using hot Aqua Regia
digestion, fire assay fusion and atomic absorption finishing procedures. This gold analytical
procedure has lower and upper detection limits of 0.003 and 10 ppm respectively. The other 35
elements were determined with four acid digestion and ICP emission spectrometry measuring
procedures.
Three of the verification samples, samples 15586, 2737 and U-001, returned over-limit silver
ICP values (greater than 100gpt Ag) and were re-assayed using four-acid digestion (50g), fire
assay fusion and atomic absorption finishing procedures. All of the analytical procedures and
results for the verification samples accompany this report in Appendix I1.
The analytical differences between the 2003 and 2011 drill core samples (Samples 2737, 2858,
15586 and 15623) and the drill core verification samples across the same intervals are probably
due to inequal amounts of precious metal-bearing mineralization between the two portions of
drill core and the usual ‘nugget’ effects of such mineralization.
The results from sampling outcrops and near-surface exposures of the Urumalqui vein structure
returned silver values ranging from 69.5 to 255.1 gpt and gold values ranging from 0.344 to
1.748 gpt. There were no reported samples collected in the immediate vicinity of these
verification samples to compare the returned silver and gold values.
12.5 Conclusions and Recommendations
It is the authors’ opinion that the PeruGold electronic database is adequate for the estimation of
the mineral resources in this report. This is based on the authors own independent comparison of
certified assays and the drilling and assay database.
It is the opinion of Mr. McCrea that the QA/QC sampling supports the drill results from this
latest exploration program and an inferred mineral resource classification for the Urumalqui
12-29 MQes
vein. Future drill drilling and trenching should institute strict industry-standard QA/QC
procedures during the work, the resultant analytical results should be subject to QA/QC review
prior to any public disclosure, and a thorough QA/QC review and report should be undertaken
after each drilling campaign and at least annually.
It is the authors’ opinion that the drill core verification sample results compare reasonably well
with those reported by PeruGold, and the near-surface sample results confirm the precious metal-
mineralization reported by Gitennes for the Urumalqui vein structure.
12-30 MQes
SECTION 13
MINERAL PROCESSING AND METALLURGICAL TESTING
13.0 MINERAL PROCESSING AND METALLURGICAL TESTING
13.1 Introduction
Metallurgical investigations of the Urumalqui project thus far have been conducted by Gitennes
prior to 2009. AndeanGold did not conduct any metallurgical tests in connection with its 2011
infill drill program. Metallurgical test work performed on material from the Urumalqui
project to date has investigated the metallurgical response of mineralized material with respect
to:
 Flotation.
 Flotation plus cyanidation of concentrate.
 Gravity separation.
 Gravity Separation followed by flotation of gravity tails.
 Gravity separation followed by cyanidation of gravity tails.
All the tests are preliminary and should be considered as “scouting” tests. The test work
has been performed in Peru and mostly at Laboratorio Plenge & CIA S.A. and Alex Stewart
[Assayers] del Perú S.R.L. Description of the test work and results are presented below.
13.2 Metallurgical Testing
Metallurgical test work performed to date is presented in the following reports:
 Investigacion Metalurgica ASA 2661; Alex Stewart [Assayers] del Perú S.R.L., May 29,
2008.
 Investigacion Metalurgica ASA 3467; Alex Stewart [Assayers] del Perú S.R.L.., July 17,
2008.
 Investigacion Metalurgica ASA 4425; Alex Stewart [Assayers] del Perú S.R.L.,
September 4, 2008.
 Prueba de Flotacion – Mineral del Proyecto Urumalqui; Memo to Ing. Teodoro Mallqui
Quispe from Ing. Alex Jaramillo Rosales, December 24, 2008.
 Investigacion Metalurgica No. 7188; Laboratorio Plenge & CIA S.A., January 15, 2009.
Summaries of the test work and results in these reports are presented below.
13.2.1 Test Work ASA 2661 – Alex Stewart [Assayers] del Perú S.R.L.
This test work program assessed the metallurgical response for producing a flotation concentrate
followed by cyanide leaching of the concentrate. Two composites samples were prepared for the
test work. They were identified as Composite (A) Veta – ASA 1521 and Composite (B) Roca
Caja - ASA 1522. No tests were reported as being performed using Composite (B) material in
this program. Assay head grades for the composites are shown in Table 13-1.
13-1 MQes
Table 13-1: Assay Head Grades – Composites (A) and (B)
Assay Head Grade

Composite
Silver (g/t) Gold (g/t)
Composite (A) Veta – ASA 1521 156 0.91
Composite (B) Roca Caja - ASA 1522 31.88 0.65
Material used in preparing the composites A and B are shown in Table 13-2 and 13-3
respectively.
Table 13-2: Material Used in Preparation of Composite A
Length Bags Weight Grade (g/t)

Sample DDH From To Note
(m)* No. (Kg)** Ag Au
28076 URU08-37 173 179 6 2 8.75 Vein 135 0.52
28077 URU08-40 181 190 9 2 10.3 Vein 169 0.29
28078 URU08-40 190 194 4 1 5.5 Vein/Env 53 1.15
28079 URU08-42 157.3 162.5 4.8 1 7.2 Vein 190 3.26
28080 URU08-45 211.9 220.5 8.6 2 10.2 Vein 229 2.38
28084 URU08-39 254.9 257.5 2.6 1 2.7 Vein 131 1.53
* = Unit assumed to be meters
** = Weight assumed to be Kg
Table 13-3: Material Used in Preparation of Composite B

28081 URU08-39 283.4 295.6 12.2 3 18.9 Envelope 30 0.32
28082 URU08-39 272 275 3 1 4.5 Envelope 14 0.56
28083 URU08-39 258.5 270 21.5 2 14.6 Envelope 21 0.21
Three flotation tests performed on Composite A material. The primary grind size for each test
was P80 = 200 mesh. Tests 1 and 2 produced a rougher concentrate. Test 3 investigated one
stage of cleaning. Results indicate that Ag recovery to the rougher concentrate ranged from
77.26% to 81.17% while Au recovery ranged from 47.28% to 76.32%. One stage of cleaning
produced a concentrate assaying approximately 11,123 g/t Ag and 69 g/t Au. The recovery of
Ag and Au to the cleaner concentrate was 68.39% and 41.65% respectively. The gold recoveries
for tests 2 and 3 are suspect as the calculated head grades are higher than the assayed head grade
for the composite (>35% for test 2 and >60% for test 3).
Three bottle roll tests were also performed on Composite A material. The tests assessed
metallurgical response at crush sizes of 0.5 inch, 0.25 inch and 1/8 inch. After 72 hours leaching
tests 1 and 2 showed gold recoveries of approximately 90% and silver recoveries ranging from
14% to 24%. The gold recovery for test 3 is suspect as recovery was greater than 100%. Silver
recovery was reported as 33%. Reported cyanide consumptions ranged from 1.7 kg/t to 2.2 kg/t.
13-2 MQes
This program investigated flotation to produce a rougher concentrate and then cyanidation of
rougher concentrates (using bottle roll tests). The primary grind size for flotation was P80 = 200
mesh. The rougher concentrate produced assayed 1,868 g/t Ag and 13.10 g/t Au. Reported
recoveries were 81.5% and 46.3% for Ag and Au respectively. It is understood that samples
used in this test were from the same composite used in test program ASA 2661 (presumably
Composite A). If so, the above gold results are suspect. The calculated head for gold (1.81 g/t)
is twice the assayed head grade. Cyanidation of the rougher concentrate for 48 hours indicated
recoveries of approximately 99% for both Ag and Au; based on Ag and Au in the concentrate.
The overall recovery of Ag and Au is little changed from flotation. NaCN consumption was
18kg/t concentrate.
The sample used in this test program was indicated to be Composite (B) Roca Caja. The material
indicated to have been used in the preparation of this composite is indicated in Table 13-4. The
assayed head for the composite is reported to be 30.7 g/t Ag and 0.92 g/t Au.
Table 13-4: Material Used in Preparation of Composite (B) Roca Caja

28081 URU08-39 283.4 295.6 12.2 3 18.9 Envelope 30 0.32
28082 URU08-39 272 275 3 1 4.5 Envelope 14 0.56
The same sample ID’s were reported to be included in the preparation of Composite B for test
work program ASA 2661. Direction from Gitennes (discussion with J. Blackwell on November
4, 2011) indicates the Composite (B) Roca Caja reported in program ASA 2661 and in this
program is the same composite. J. Blackwell further indicates that the samples identified in Table
13-4 above are the correct samples used in preparing Composite (B) Roca Caja and those
reported in program ASA 2661 are incorrect. MQes is unable to verify this. It is noted, however,
that no tests were reported to have been performed on Composite (B) Roca Caja in program ASA
2661.
This objective of program ASA 4425 was to assess the metallurgical response of material ground
to P75 = 200 mesh followed by flotation and then cyanidation of the rougher concentrate. The
reported results indicate a rougher concentrate was produced that had a grade of 298 g/t Ag and
10.83 g/t Au. Silver and gold recoveries to the rougher concentrate were 45.41% and 54.38%
respectively. Cyanidation of the rougher concentrate dissolved over 90% of the silver and 97%
of the gold in the concentrate. Cyanide consumption was around 36 kg/t concentrate and lime
consumption was reported to be 71.25 kg/t concentrate (incorrectly reported in conclusions
section of report ASA 4425).
13-3 MQes
13.2.4 Memo – Prueba de Flotacion – Alex Jaramillo Rosales
This memo presents the results of flotation tests performed to recover silver. Different flotation
reagents were evaluated to assess the effect on silver recovery. Details on the makeup,
representivity, chain of custody, methodologies and samples used in this program are unknown
(per J. Blackwell “GITENNES_Database_Notes_for_mqes-103111.doc”). Although silver
recoveries were in line with flotation test results in other programs, information contained in this
report is not supportable and as such the results are not considered material to the metallurgical
development of the project.
13.2.5 Test Work No. 7188 – Labotatorio Plenge
A 50kg sample of material was supplied to perform the testwork described in this program. The
sample is identified in the NI 43-101 report titled “TECHNICAL REPORT TO MARCH 30,
2009 on the URUMALQUI PROPERTY by Jerry D. Blackwell, P.Geo.” as being “collected
from the face of level 28, underground”. The head assay of the sample was 4.45g/t Au; 9.45oz/t
Ag and S total = 0.19%.
This test work program investigated:

 Gravity Concentration.
 Flotation of gravity tailings
 Cyanidation of gravity tailings.
Material was ground to P80 = 65 Mesh. Gravity separation was performed on the ground
material. Recoveries of silver and gold to the concentrate were reported as 15.9% and 20%
respectively. The gravity tailings was reground to P80 = 200 mesh. A flotation test on a portion
of the reground tailings produced a concentrate with a grade of 131.25 oz Ag/t concentrate and
45.8 g Au/t concentrate. The total recovery of silver and gold from gravity concentration
followed by flotation of the gravity tailings was approximately 55% Ag and 50% Au.
Cyanidation tests were performed on portions of the reground gravity tailings. Total silver and
gold recoveries from gravity concentration followed by cyanidation of the gravity tailings was
approximately 70% Ag and 94% Au. Cyanide consumption was 4.6 kg/t and lime consumption
was 1.9 kg/t. As reported in the March 2009 NI 43-101 report (Jerry D. Blackwell, P.Geo.), “The
Plenge results are favourable, however it is dangerous to extrapolate these results to the entire
Urumalqui Vein. It is possible that the underground sample from the 28 level is not
representative, as it’s grade is higher than that most often encountered when drilling”.
13.3 Mineral Processing
Metallurgical test results to date indicate that material from the Urumalqui is likely to be
amenable to treatment by either flotation or cyanidation. Gravity concentration appears to
improve recoveries of both silver and gold.
Potential flowsheets for these processing routes may involve:
 Crushing, grinding, gravity concentration and flotation of gravity tailings.
13-4 MQes
 Crushing, grinding, gravity concentration and cyanidation of gravity tailings.
Further testwork is required to determine metallurgical parameters (recoveries, grind size,

reagents, residence times, regrinding, etc.) for these alternatives. These parameters can then be
used as the basis for performing engineering evaluations into assessing the economics of the
processing routes.
13-5 MQes
SECTION 14
MINERAL RESOURCE ESTIMATES
14.0 MINERAL RESOURCE ESTIMATES
14.1 Introduction
This mineral resource estimate has been prepared following the guidelines of NI 43-101 and is
restricted to only the drill tested portion of the Urumalqui vein structure. It does not explicitly or
implicitly refer to resources contained in any of the other mineralized zones within the
Urumalqui property. The modeling and estimate of the mineral resources were carried out by
Mr. J. Douglas Blanchflower, P. Geo., and Mr. James A McCrea, P. Geo., both qualified persons
with respect to mineral resource estimation under NI 43‐101. Both Messrs. Blanchflower and
McCrea are independent of AndeanGold and PeruGold by the definitions and criteria set forth in
NI 43‐101, and there is no affiliation between these men and the companies except that of an
independent consultant-client relationship.
The Urumalqui mineral resources are not materially affected by any known environmental,
permitting, and legal, title, taxation, socio‐economic, political or other relevant issues. The
estimate of the mineral resource may be materially affected with further exploration along its
known length. The effective date of this mineral resource estimate is November 8, 2011.
14.2 Drilling and Assay Database
The drilling and assay data were provided by PeruGold in the form of Microsoft Excel
spreadsheet files, pdf files of drill logs and scanned original assay certificates. PeruGold also
provided nineteen drill cross sections created on a local mine grid dominantly oriented 035o at a
50-metre spacing and named from 0+00S to 900+00S. Excel spreadsheet files contained
location, survey, lithology, structure, oxidation and analytical data for all 78 diamond drill holes
collared within the Property. However, only 66 of these drill holes were collared to test the
Urumalqui vein structure and only the data from these drill holes were utilized in the mineral
resource estimate. The data from the 12 other drill holes not located along the Urumalqui vein
structure were not modelled nor used for the mineral resource estimate. The drilling and assay
data provided by PeruGold appears to be adequate for the purposes of this preliminary mineral
resource estimate and the authors have no reason to believe that any of the information is
inaccurate.
The database was validated in Gemcom with corrections required. The assay database for those
drill holes situated along the Urumalqui vein structure contains 3,556 samples that were analysed
for gold and silver. When there were several different analytical procedures performed on
individual samples, often as a result of the measured silver and/or gold grades exceeding the
limits of precision for a particular analytical technique, the assay result from the most accurate
procedure was considered the ‘final’ value (i.e. Fire Assay/Gravimetrics superseded Fire
Assay/Atomic Absorption which superseded ICP values). All ‘below detection limit’ analytical
values were assigned one-half the lower detection limit value for the purposes of this resource
estimate. All data are expressed in metric units and grid coordinates are in the UTM PSAD56
Datum reference system.
14-1 MQes
Verification of assay data entries was performed on the 2011 drilling samples which represented
1,699 samples or 43% of the total 3,985 assay samples for gold and silver. The assays for the
remaining 2003, 2004 and 2008 drill samples were verified and qualified by Blackwell (2009).
Data entry errors for the 2011 assay samples were observed and corrected. The sample analyses
and any subsequent over limit or check-assay results were verified with digital assay lab
certificates from Inspectorate Services Peru S.A.C. of Lima, Peru.
14.3 Sample Compositing
Equal length one-metre assay sample composites were calculated from assayed gold and silver
values for all drill holes. These 1 metre composites were generated from each drill hole collar to
its terminus. Any unassayed intervals were assigned a ‘Not Entered’ (‘NE’) designation which
excluded it from any composite calculation, and any composites less than 0.5m in length were
discarded so as to not introduce a short sample bias in the interpolation process.
14.4 Grade Shell Calculations
For grade domain modelling purposes only, a silver equivalent (‘AgEQ’) grade was calculated to
incorporate both the gold and silver values hosted by the Urumalqui vein. The silver equivalent
grade was a calculated combination of its ‘final’ gold value at a 3 year trailing average price of
US$1,300/troy oz and 85% metallurgical recovery rate, and its ‘final’ silver value at a 3 year
trailing average price of US$26/troy oz and 65% metallurgical recovery rate. Trailing average
prices were determined graphically, effective August 26, 2011. Thus, a modelling cut-off grade
of 60gpt AgEQ was utilized only for the grade domain modelling.
Histograms for uncapped silver and gold assays within the 60gpt AgEQ assay domain solid are
shown in Figures 14-1 and 14-2.
14-2 MQes
Figure 14-1: Histogram of 475 Uncapped Silver Assays In AgEQ60 Assay Domain Solid
Figure 14-2: Histogram of 475 Uncapped Gold Assays In AgEQ60 Assay Domain Solid
14-3 MQes
14.5 Rock Code Determination
Rock codes used for the mineral resource model were based upon one mineralized domain solid,
coded ‘AgEQ60’, that was later subdivided into three structurally-distinct sections, plus
surrounding air and waste rock as follows.
Rock Code Description

0 Air
1 Waste/Background
10 AgEQ60
15 AgEQ60 Southeastern Portion (Domain 1)
25 AgEQ60 Central Portion (Domain 2)
35 AgEQ60 Northwestern Portion (Domain 3)
14.6 Three Dimensional Solid Modelling
Grade domain boundaries were determined from a visual inspection of the computerized host-
rock lithology, local structural features and AgEQ grades on vertical drill hole cross-sections
spaced 50 metres apart. The domain boundaries were influenced by the selection of mineralized
material grading greater than 60gpt AgEQ that demonstrated zonal continuity along strike and
down dip. In some cases, mineralization grading between 55 and 60gpt AgEQ was included to
maintain zonal continuity. Polyline smoothing removed obvious jogs and dips in the domain.
Vertical cross-sections oriented at 035o and spaced equally 50 metres apart were generated by
Gemcom along the entire drill-tested length of the Urumalqui vein structure, a distance of
approximately 1,600 metres. These cross sections were arbitrarily designated 1000NW to
2600NW with cross section 2000NW corresponding to the PeruGold cross section 0+00S.
Polyline interpretations of the greater than 60gpt AgEQ mineralization were plotted on each
vertical cross section from the mapped surface exposure of the Urumalqui vein through each of
its drill hole intercepts and projected an average of 75 metres beyond the deepest drill hole
intercept depending upon the vein width, continuity and local structural features. Minimum
constrained true width for interpretation was approximately 2 metres. The interpreted polylines
from each section were “wire-framed” in Gemcom into a 3 dimensional assay domain model.
Four hundred and thirteen composite assay samples from 475 original assay samples occur
within the AgEQ60 assay domain solid. The resulting solid (domain) was then used for initial
statistical analysis, grade interpolation, rock coding and resource reporting purposes.
Following a preliminary interpolation test run the one AgEQ60 assay domain solid was
subdivided into three distinct structurally unique parts to more accurately interpolate the vein
mineralization that has a southeast-northwest trending ‘bow’ shape in plan (see Figure 14-4).
Thus, the whole assay domain solid was subdivided into: a southeastern portion (Domain 1,
Rock Code 15) that extends from vertical section 1000NW to 1500NW with an average apparent
strike of 318o and apparent dip of -90o; a central portion (Domain 2, Rock Code 25) that extends
14-4 MQes
from vertical section 1500NW to 2050NW with an average apparent strike of 325o and apparent
dip of -75o SE; and a northwestern portion (Domain 3, Rock Code 35) that extends from vertical
section 2050NW to 2650NW with an average apparent strike of 338o and apparent dip of -90o.
Figures 14-3 and 14-4 show the 60 gpt silver equivalent assay domain solid looking northward
and northwestward respectively.
Figure 14-3: View of AgEQ60 Assay Domain Solid Looking Northward
Figure 14-4: View of AgEQ60 Assay Domain Looking Northwestward
14-5 MQes
14.7 Topographic Control
PeruGold provided two digital topographic surface files for the Urumalqui property, one
covering most of the property with 5 metre contours and another covering a smaller, trimmed
area with 1 metre contours. Unfortunately, the available trimmed 1 metre contour topographic
file did not cover the entire drill tested length of the Urumalqui vein so sectional work at the
extreme northwestern and southwestern ends of the vein structure used surface traces generated
from the 5 metre contour topographic plan. During later interpolation work the area of 1 metre
topographic control was extended to the northwest and southeast by combining the trimmed 1
metre contour topography with the 5 metre contour topographic control. The authors are not
aware when the two available topographic plans were prepared.
It was later reported that 1 metre topographic control was available for the entire known length
of the Urumalqui vein structure and much of the property but, due to the very large original file
size, only the smaller, trimmed area had been made available for the mineral resource study. It is
recommended that the large, original 1 metre topographic file be professionally subdivided into
useable portions for use during future exploration work and mineral resource studies.
14.8 Bulk Density Estimation
The choice of a bulk density determination method for a particular deposit depends on the
physical characteristics of the lithologies present and the types of sample available. Porous
materials are more difficult to measure accurately using a water displacement method, and wax
sealing methods are routinely used in these circumstances. Waxing also assists in the handling
of weak or friable materials. The use of two methods is often recommended to demonstrate that
consistent results can be obtained.
Bulk density data used for the resource estimate was derived from specific gravity data provided
by PeruGold. A total of 374, 10 centimetre long drill core samples were analysed for their bulk
density, including 273 samples from the vein material, 86 samples from the altered host rock
within the vein envelope and 15 samples from the fresh country rock. The bulk density samples
were selected from drill intercepts in eleven different 2011 drill holes with one half tested in the
field by the water displacement method and the other half tested in the laboratory by Inspectorate
Services Peru S.A.C. of Lima, Peru using the wax method.
The water displacement method will produce a density for the respective lithology in its natural
state, and does not account for the effects of porosity and fracturing which will reduce the rock
density. Subsequent laboratory density measurements using the paraffin wax method is often
used as a reliable density estimate for mineral resource estimation and mine planning purposes.
Whole core should be used for density measurements before it has been split for sampling for all
lithologies present (including oxides). Breccias by their nature contain variable clast
compositions and contents and may inherently show variation in density, so the establishment of
a large database of breccia density readings is essential.
The results of the PeruGold bulk density testing program show that the hanging wall altered and
silicified host rocks within the Urumalqui vein envelope have an average bulk density of 2.03
14-6 MQes
tonnes/m3. The altered and silicified footwall vein envelope rocks have an average bulk density
of 2.18 tonnes/m3. The average bulk density of the mineralized quartz vein material hosting the
dominant portion of the mineral resources is 2.37 tonnes/m3. The bulk density data provided by
PeruGold appears to be adequate for this preliminary mineral resource estimate and the authors
have no reason to believe that any of the information is inaccurate.
14.9 Grade Capping
The authors used cumulative probability plots to identify high grade outliers for both silver and
gold assays contained within the three-dimension AgEQ60 assay domain solid. Figures 14-5 and
14-6 show cumulative probability plots using the cumulative normal distribution function for
uncapped silver and gold assay values, respectively.
Based upon the graphical results, raw silver assays were capped at 850gpt representing 98.53%
of the 475 raw silver assays. Seven silver values exceeding the cap level were each reduced to
850gpt. The raw gold assay probability plot indicated a capping level at 8.6gpt representing
98.32% of the total 475 gold assay values. The eight gold assays exceeding the 8.6gpt cap level
were each reduced to 8.6gpt.
Once the grade capping levels had been determined, erratically high values for the silver and
gold values in the raw assay database were capped accordingly, and 1 metre composites were re-
calculated using the capped assay data. A summary of the resultant capped composites which
were utilized during interpolation and estimation of the mineral resources is presented in Table
14-1.
Table 14-1: Assay Sample Data for AgEQ60 Assay Domain Solid
Type of Max Mean Median Coef. Of

No. Std. Dev.
Assay Data Value (gpt) (gpt) Var.
Raw Assay Data
Silver 475 1,829.00 176.43 116.90 188.86 1.07
Gold 475 24.90 1.34 0.55 2.41 1.79
Uncapped 1-metre Composite Data
Silver 413 1,295.81 167.52 118.09 162.30 0.97
Gold 413 24.90 1.26 0.62 1.97 1.57
Capped 1-metre Composite Data
Silver 413 850.00 164.61 118.09 148.71 0.90
Gold 413 8.60 1.18 0.62 1.48 1.25
Sample compositing produced a total of 5,806 one metre composites within the entire Urumalqui
zone which were transferred to other Gemcom tables for geomodelling.
14-7 MQes
Figure 14-5: Cumulative Probability Plot of Silver Values Within Assay Domain Solid
Figure 14-6: Cumulative Probability of Gold Values Within Assay Domain Solid
14-8 MQes
14.10 Semi-Variogram Analysis
The Sage2001 variography software was utilized to evaluate the spatial continuity of the silver
and gold mineralization using the capped 1 metre composite data within the constrained AgEQ60
assay domain.
Conventional correlogram variography was used to model the grade continuity. Nugget effects
were estimated from true downhole semi-variograms. The major, semi-major and minor axes for
grade continuity were determined using oriented semi-variogram fans. The variograms were
used to model search ellipses that were then defined for resource estimation utilizing the
Gemcom Z-Y-Z rotation convention. Correlations between grade-elements within the domain
were also investigated with semi-variograms by comparing search ellipses and with correlation
coefficients.
Search ellipses were produced for each grade-element after multiple experimental semi-
variograms had been generated at 30 degree intervals for strike and 15 degree intervals for dip.
Modelling of both the silver and gold continuity produced moderate to poor quality experimental
semivariograms. The semivariogram models produced were lacking data density and the bowed
shape of the Urumalqui vein produced variograms with orientations that did not conform well to
local vein orientations. The solution for this, as described above, was to subdivide the vein into
3 domains and rotate the search ellipses into the plane of the vein for each of the 3 domains.
14.11 Block Model
An unrotated, three dimensional block model was created in Gemcom to completely cover the
drill tested portion of the Urumalqui vein structure. The Block Model parameters are presented
in Table 14-2.
Table 14-2: Block Model Parameters
Axis Actual Axis Origin Block No. of

Axis
Direction Orientation Nomenclature Coordinate Size (m) Blocks
Easting 090o X Column 775500 5 400
Northing 000o Y Row 9106500 5 350
Elevation Vertical Z Level 3750 5 90
Separate block models were created for Rock Type, Density, Percent, Class, Gold and Silver. In
addition, several special models were created including; Distance (to the Closest Sample for first
pass), Number of Samples (used in block estimation), Domain (used to control the interpolation
within the three separate domain subdivisions), and various interpolation and classification
verification models (i.e. Nearest Neighbour Ag and Au).
The percent (partial) block model was created to accurately represent the volume and subsequent
tonnage that was occupied by each block inside the constraining Urumalqui assay domain solid.
The block model was coded for air (i.e. above topography), waste (i.e. outside assay solid) and
the assay domain by coding blocks with a greater than one percent (1%) threshold. Blocks with
14-9 MQes
more than 1% of the block inside the domain were given the code of the domain. Thus, the
domain boundaries were properly represented by the percent model with the ability to measure
infinitely variable inclusion percentages within the domain.
14.12 Interpolation
Based upon the modelled search ellipses, silver and gold grades were estimated for each block in
the block model using capped grade composites with an ‘Inverse Distance Squared’
interpolation. Histogram and cumulative probability plots of capped silver composite samples are
shown in Figures 14-7 and 14-8 respectively.
Figure 14-7: Histogram Plot of Capped Silver Composites
14-10 MQes
Figure 14-8: Cumulative Probability Plot of Capped Silver Composites
Grade interpolation was carried out in one interpolative pass. The interpolation estimated grade
in the assay domain requiring a minimum of 1 sample and maximum of 15 samples to estimate a
block for silver and a minimum of 1 sample and a maximum of 9 samples to estimate a block for
gold within the search ranges. During interpolation the number of samples used for each grade
element interpolation and the closest distance to an actual composite sample were written to the
‘Number of Samples’ and ‘Distance’ block models respectively. Table 14-3 provides a summary
of the interpolation parameters.
Table 14-3: Interpolation Data for Three Assay Domain Solids
Rotation Range Min # Max #

Element Z Y Z X Y Z Samples Samples
Domain 1
Silver 48 90 0 60.0 90.0 30.0 1 15
Gold 48 90 0 60.0 90.0 30.0 1 9
Domain 2
Silver 55 -75 0 60.0 90.0 30.0 1 15
Gold 55 -75 0 60.0 90.0 30.0 1 9
Domain 3
Silver 68 90 0 60.0 90.0 30.0 1 15
Gold 68 90 0 60.0 90.0 30.0 1 9
14-11 MQes
14.13 Interpolation Validation
The validation of the Urumalqui block model included visual inspections of the block grades
versus composite data values, whole vein composites and ‘one out’ cross-validation.
A preliminary Inverse Distance Squared interpolation run was conducted to provide a visual
check on the interpolation parameters. Visual inspections of the silver and gold block models
showed that the interpolation had extrapolated grades with reasonable values and distribution
throughout the modelled domain.
The ‘one out’ cross-validation routine is used for validating kriged and inverse distance weighted
models. It is a discretionary sub-routine within the Gemcom interpolation profile that involves
the removal of a single point from the data set and the estimation of a temporary block at that
point using the remaining data. Values are then estimated for all the data points in the data set.
The original values and the estimated values for all the data points in the data set can then be
statistically analysed and graphed. The scatter plots are used to examine the relationship of the
original values to the estimated values by plotting the original values vs. estimated values, the
difference vs. the estimated values. To check if the interpolation is under or over estimating, the
percent difference of the means of the original and estimated values is calculated.
The ‘one out’ cross-validation was used to ‘fine tune’ the number of samples used for
interpolation. The cross-validation graphs were produced for a range of interpolation profiles for
each element with a different maximum number of samples used in the interpolation. The graphs
were used to check on the effects of more data or averaging during interpolation, thus,
optimizing the interpolation parameters. The final interpolation profiles were revised to
maximize the number of samples for each metal that produced the best cross-validation results.
The results of the ‘one out’ cross-validation are used to calculate the difference between the
mean of the estimated grades from interpolation and the mean of the actual grades from the
composite dataset as a percentage of the mean of the actual composite grades. The difference
between the mean estimated grades and mean actual composite grades for the one interpolation
pass for the silver grade-element was 0.55%. The difference for the gold grade-element was
higher at 8.91% due to an apparent ‘nugget’ effect in the style of vein mineralization. Table 14-4
contains a summary of the ‘one out’ cross validation results.
Table 14-4: Summary of ‘One Out’ Cross Validation Results
Estimated Actual Difference

Element Unit Grade Mean Grade Mean (%)
Silver g/t 165.51 164.61 0.55
Gold g/t 1.28 1.18 8.91
14.14 Mineral Resource Classification
The mineral resources of the drill-tested portion of the Urumalqui vein structure were classified
as ‘Inferred’ based upon true distance from a block to the nearest capped grade composite. Only
14-12 MQes
blocks inside the three-dimensional mineral domain were classified; all other blocks were not
interpolated or classified.
The distance classification of ‘Inferred’ resources was coded in one pass. The ‘Distance’ model
was used to classify all interpolated blocks within true distances of 0.01 to 70.0 metres as
‘Inferred’, and these blocks were coded as ‘Inferred’ in the ‘Class’ block model.
All of the mineral resources have been classified as ‘Inferred’. This classification may be
upgraded with the results of future in-fill drilling and detailed surface channel sampling, plus the
resolution of outstanding QA/QC issues and a thorough geological and structural analysis of all
exploration results to date.
14.15 Mineral Resource Estimate
The mineral resource estimate was derived from applying a silver cut-off grade to the block
model and reporting the resulting tonnes and grades for potentially economic areas. The
rationale supporting the estimation of the silver cut-off grades was based largely upon reported
cut-off grades for similar proposed and operating underground mining operations with gravity
and cyanide recovery facilities in Peru and elsewhere in South America, and on estimations of
mining, recovery and general and administrative expenses for such operations using 3-year
trailing average silver prices. A mining cut-off grade of 90gpt silver was used to estimate the
resources of the undifferentiated oxide, transitional and sulphide mineralization.
The following mineral resource estimate does not differentiate between the various oxidation
facies of the mineralization. With future detailed exploration the degree and distribution of
wholly and partially oxidized mineralization may be distinguished from more sulphide-rich
facies. Such a differentiation may result in different cut-off grades for potentially more
expensive treatments of the precious metal-bearing sulphide mineralization.
The undiluted and inferred mineral resource estimate of the Urumalqui precious metal
mineralization at various silver cut-off grades has been summarized in Table 14-5.
Table 14-5: Inferred Mineral Resource Estimate

180.00 809 1.60 41.6 227.31 5,915
120.00 1,535 1.513 74.7 188.47 9,299
90.00 1,945 1.378 86.2 171.01 10,692
60.00 2,147 1.340 92.5 162.15 11,192
30.00 2,215 1.319 93.9 158.49 11,285
1. An Inferred Mineral Resource is that part of a Mineral Resource for which quantity
and grade or quality can be estimated on the basis of geological evidence and limited
sampling and reasonably assumed, but not verified, geological and grade continuity. The
estimate is based on limited information and sampling gathered through appropriate
14-13 MQes
techniques from locations such as outcrops, trenches, pits, workings and drill holes. Due
to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be
assumed that all or any part of an Inferred Mineral Resource will be upgraded to an
Indicated or Measured Mineral Resource as a result of continued exploration.
There is no guarantee that AndeanGold or PeruGold will be successful in obtaining any
or all of the requisite consents, permits or approvals, regulatory or otherwise for the
project or that the project will be placed into production.
3. The mineral resources in this study were estimated using the Canadian Institute of
Mining, Metallurgy and Petroleum (‘CIM’), CIM Standards on Mineral Resources and
Reserves, Definitions and Guidelines prepared by the Standing Committee on Reserve
Definitions and adopted by the CIM Council on December 11, 2005.
14.16 Mineral Resource Estimate Validation
The east-west (X), north-south (Y) and elevation (Z) trends of the interpolated grades in the
block model and their classification were plotted graphically for gold and silver, including:
sample grades versus block grades and tonnage, number of samples versus tonnage, and
classification versus tonnage. The graphs illustrate slices of the deposit at 15 metre intervals for
each of the three directions, and show the block grades, number of samples, sample grades and
tonnages for each interval. Thus, the three-dimensional trends of the mineralization can be
graphically represented from which any interpolation or classification irregularities or anomalies
can be readily detected. Figures 14-9 through 14-14 show examples of the east-west (X) and
elevation (Z) graphs for silver.
14-14 MQes
Figure 14-9: Plot of Silver Composite Grade, Silver Block Grade and Tonnage
Figure 14-9 illustrates how silver grades and interpolated silver blocks generate tonnage laterally
from the western to eastern ends of the assay domain. The effect of widely-spaced drilling on 50
metre sections is clearly illustrated by the highly variable tonnage plot across the deposit
Figure 14-10: Plot of Number of Silver Composite Samples Versus Tonnage
14-15 MQes
Figure 14-10 illustrates the effect of how widely-spaced and shallow drilling affects a tonnage
estimate. The jagged, highly variable ‘Number of Silver Composite Samples’ reflects drilling on
50 metre spaced sections.
Figure 14-11: Plot of Tonnage Versus Resource Classification
Figure 14-11 again illustrates the effect of widely-spaced drilling. The plot shows that there are
a number of sections across the interpolated silver grade block model with composite samples
separated by more than 70 metres, beyond the maximum search distance for classification as
‘Inferred’ resources. These sections are mostly related to the 100 metre spaced drill sections in
the northwestern section of the vein structure
14-16 MQes
Figure 14-12: Plot of Silver Composite Grade, Silver Block Grade and Tonnage
Figure 14-12 shows that most of the silver grade and silver composites are generating the
majority of the incremental tonnage, and there are no spurious sections with high silver grades
not generating tonnage. The grade of the blocks plotted against the sample grades shows a
smoothing of the block grades compared to the input sample grades indicating the model is
conservative. The apparent diminishing tonnage east and west of the central section of the graph
is a function of decreased drilling density
14-17 MQes
Figure 14-13: Plot of Number of Silver Composite Samples Versus Tonnage
Figure 14-13 shows that the largest numbers of samples are generating the largest portion of
tonnage. The jagged nature of the ‘Number of Samples’ plot shows the abundance of drill
samples according to elevation and at which elevation more vein intersections may be required.
Figure 14-14: Plot of Tonnage Versus Resource Classification
14-18 MQes
Figure 14-14 shows that a small number of cells within the ‘Classification’ block model,
between elevations 3,548 metres and 3,682 metres, are not classified because they occur beyond
the 70 metre search distance for classification as ‘Inferred’ resources.
In summary, the validation graphs for gold and silver did not show any obvious interpolation or
classification irregularities
14-19 MQes
SECTION 23
ADJACENT PROPERTIES
23.0 ADJACENT PROPERTIES
There is no noteworthy adjacent property within 10 km that meets the criteria defined in NI 43-
101, Section 1.1.
23-1 MQes
SECTION 24
OTHER RELEVANT DATA AND INFORMATION
24.0 OTHER RELEVANT DATA AND INFORMATION
To the authors’ best knowledge, all relevant data and information have been provided in the
preceding text.
24-1 MQes
SECTION 25
INTERPRETATIONS AND CONCLUSIONS
25.0 INTERPRETATIONS AND CONCLUSIONS
25.1 Geology
The Property is predominantly underlain by volcanic rocks belonging to the Eocene- to Miocene-
age Calipuy Group, including: green to maroon, variably magnetic, porphyritic andesitic flows
with plagioclase phenocrysts, volcanic glass and hornblende, interbedded with volcaniclastic
rocks and brecciated andesitic lavas. These rocks are cut by a series of northwest-southeast,
northeast-southwest and east-west trending, normal faults showing evidence of sinistral strike-
slip movement within a major, regional northerly trending lineament.
The precious metal-bearing mineralization is typical of a ‘low sulphidation’ epithermal style

mineral deposit. There are eight known vein structures on the Property with two common vein
orientations, a northwest-southeast set including the Urumalqui, La Mariscala West, La
Mariscala South, and Penélope veins, and an east-west set including the La Mariscala East,
Candual East, Candual West and Candual veins.
The Urumalqui vein has received most of the exploration work. In plan, it has a shallow arcuate
shape, convex to the west, with a northwesterly trend (approximately 305o). The vein dips sub-
vertically to -70o southwesterly; is up to 20 metres wide; is comprised one or two crustiform-
banded quartz veins ranging from 0.5 to 11 metres in aggregate thickness; and crops out over a
strike length of 1,500 metres. There are a number of intersecting, perhaps conjugate, faults that
have locally displaced the vein into segments ranging in length from 40 to 400 metres. The vein
mineralogy includes crustiform and chalcedonic quartz with minor adularia. Native gold,
electrum and silver-bearing argentite are genetically and spatially associated with fine-grained
pyrite.
25.2 Mineral Resource Estimate
It is estimated that the drill-tested portion of the Urumalqui vein structure hosts undiluted and
inferred mineral resources of 1.945 million tonnes grading 1.378gpt gold and 171.01gpt silver at
a cut-off grade of 90gpt silver.
A sensitivity table of the estimated undiluted and inferred mineral resources at various silver cut-
off grades is shown in Table 25-1.
Table 25-1: Inferred Mineral Resources Estimated at Various Silver Cut-off Grades

180.00 809 1.600 41.6 227.31 5,915
120.00 1,535 1.513 74.7 188.47 9,299
90.00 1,945 1.378 86.2 171.01 10,692
60.00 2,147 1.340 92.5 162.15 11,192
30.00 2,215 1.319 93.9 158.49 11,285
25-1 MQes
2. The quantity and grade of reported Inferred resources in this estimation are uncertain
in nature and there has been insufficient exploration to define these Inferred resources as
an Indicated or Measured mineral resource.
3. The above tonnage and contained gold and silver ounces are rounded to reflect the
accuracy of the estimation.
25.3 Mineral Processing and Metallurgical Testing
Metallurgical test work performed to date on the Urumalqui project is very preliminary.
Additional metallurgical test work is required to better define the preferred processing flowsheet
and subsequently optimize the criteria for this flowsheet.
The representativity of samples used in metallurgical test work performed to date is not
identified. It is recommended sample collection for future metallurgical test work considers rock
type, lithology, grade variations and spatial distribution. A metallurgical sampling program
needs to be developed with the objective of developing a geo-metallurgical model for the project.
It is recommended a QA/QC program is included as part of this sampling program.
No mineralogical analysis relevant to optimizing metallurgical treatment has been performed to

date. This analysis can give direction to grinding requirements, expected recoveries and
preferred processing route. It is recommended mineralogical analyses are performed on
representative samples.
Communition test work such as Bond Work index, crusher index and abrasion index has not
been addressed to date. It is recommended this is included in future metallurgical test work
programs.
Flotation test work results indicate gold and silver can be recovered to a concentrate. Evaluation
of primary grind size, reagent scheme and assessment of regrinding needs performing to
optimize metallurgical responses.
Bottle roll tests on material with crush sizes of 0.5 inch, 0.25 inch and 1/8 inch indicate that after
72 hours of leaching, good gold recoveries but modest silver recoveries are realized. Cyanide
consumptions were reasonable. Optimization of crush size and leach time may improve silver
recoveries, however, test work assessing crushing/grinding followed by downstream processing
are recommended in preference to assessing a heap leach processing route.
Test results on cyanidation of concentrates have resulted in high recoveries of gold and silver.
25-2 MQes
consumption, however, was high. It is recommended metallurgical investigations are pursued to
optimize the processing route using gravity concentration followed by cyanidation of the gravity
tailings.
25.4.1 Data Collection and QA/QC Procedures
The documentation of the drill core appears quite good. Future core logging should include a
detailed assessment of the oxidation state of the mineralization so that the oxide, transitional and
sulphide facies could be subdivided during future mineral resource studies.
A number of data entry errors were encountered in the PeruGold assay database that apparently
resulted from the hand-entry of analytical results from Certificates of Assay. These errors were
corrected by re-entering the digital analytical data directly from the digital Certificates of Assay.
This failure rate for the Standard Reference Material inserted into the drill core sample sequence
was very high and no corrective measures were taken by the company. Re-sampling and/or re-
assaying of unresolved QA/QC samples must be undertaken to confirm the grades of drill
samples that were batch assayed with standard reference material returning suspiciously erratic
grades. Future sampling work, be it drilling, surface or underground sampling, should be
conducted in conjunction with an industry standard, closely supervised and monitored QA/QC
program with frequent, third-party check assaying and preparation of a site specific standard
reference material.
The current assay protocol has the standards submitted to the lab as pulp bags with bags of split
drill core. This is a non-blind submission and any possible bias created by this type of non-blind
submission has yet to be assessed. Pulp Duplicates (5%) sent back to the primary lab with the
included standards and new standards would check for a possible bias from the submission of
pulp bag standards. The charted results from a totally blind submission would show any bias if
pulp bags had been treated differently.
25.4.2 Mineral Resource Estimate - Risks
 Drilling is widely-spaced for such a long and relatively narrow vein deposit.
 Current surface chip samples are not of comparable volume and quality with existing
diamond drill samples to be considered for inclusion in the mineral resource estimation.
 Drilling and surface geological mapping results indicate a number of intersecting and
sub-parallel faults and shears that may or may not have influenced the apparent vein
continuity and tenor along its known strike length.
 Geological logs did not fully describe the oxidation state of the precious metal-bearing
mineralization to quantify oxide, transitional and sulphide hosted mineralization for
individual mineral resource estimation.
25-3 MQes
 Some unresolved QA/QC results may or may not impact the grades of isolated drill core
sample assay batches.
 MQes is not aware of any known environmental, permitting, legal, title, taxation, socio-
economic, marketing, political or other relevant factors that could materially affect the
estimate of the stated mineral resources.
25.4.3 Mineral Resource Estimate - Opportunities
 Most of the exploration drilling has focused on evaluating the Urumalqui vein structure at
vertical depths less than 200m. A combination of in-fill drilling with both near surface
and deeper drilling intercepts should improve the interpretation of the vein geometry and
tenor, as well as identify any significant structural displacements that might influence
inferred projections of mineralization.
 A combination of high quality surface channel sampling, increased sample density from
in-fill drilling and resolution of any QA/QC issues should lead to a classification upgrade
of future estimated mineral resources.
 Detailed identification and interpretation of the oxidation state of the mineralization to
quantify mineralization for various recovery processes may positively influence the cut-
off grades for future mineral resource estimates.
 The exploration potential of the Urumalqui vein is good. Exploration results show that
the known vein mineralization may continue along its trend in both strike directions and
to depth along its entire known length.
 This project is still in the advanced exploration stage requiring significant additional
work to better define the geometry and tenor of the vein deposit, and evaluate available
mining and processing methods.
25.4.4 Mineral Processing and Metallurgical Testing - Risks
 Samples used in metallurgical test work to date are insufficient in number, may not be
representative and it is possible certain mineral assemblages have not been identified and
tested.
 Successful treatment of material from the Urumalqui project will be dependent on
developing an economic processing route. The metallurgical and processing parameters
required to determine an economic processing route are not yet fully developed. Further
metallurgical test work is required to determine these parameters, perform engineering
evaluations and assess project economics.
25.4.5 Mineral Processing and Metallurgical Testing - Opportunities
 Metallurgical criteria such as primary grind size, reagent scheme, regrinding, etc are
currently not optimized. Optimization of these criteria may improve recoveries of silver
and gold.
25-4 MQes
25.4.6 Environmental Impact and Permitting
The 2011 diamond drilling program was carried out subject to an Environmental Impact
Declaration permit which allowed the drilling from up to 20 drill pads within a 5 hectare area.
Future infill drilling along the central 1,000 metre portion of the Urumalqui vein structure may
be undertaken using any of the 20 existing pads which can be moved up to 50 metres from their
permitted locations. Any other drilling outside of the 1,000 metre central vein section, whether
along the Urumalqui vein or on the other veins identified to date on the Property, would require
PeruGold to file an Environmental Impact Statement which PeruGold is presently preparing.
25-5 MQes
SECTION 26
RECOMMENDATIONS
26.0 RECOMMENDATIONS
It is recommended that:
 Detailed infill drilling should be carried out midway between drill sections that are
currently spaced 45 to 100 metres apart. Such infill drilling would provide necessary
geological and structural information to better interpret the vein geometry and grade
continuity.
 Detailed surface bedrock channel samples should be collected at 25 metre intervals along
the exposed sections of the vein structure. These samples should be well surveyed,
documented and of similar volumes to be of equivalent quality to diamond drilling
samples. The geological and grade information from such detailed sampling work may
then be used to confirm the near-surface vein geometry and grade continuity for more
definitive mineral resource classification.
 Re-sampling and/or re-assaying of unresolved QA/QC samples must be undertaken to
confirm the grades of drill samples that were batch assayed with standard reference
material returning suspiciously erratic grades. Future sampling work, be it drilling,
surface or underground sampling, should be conducted in conjunction with an industry
standard, closely supervised and monitored QA/QC program with frequent, third-party
check assaying.
 A complete and thorough re-interpretation of the geological and structural setting of the
Urumalqui vein structure should be undertaken to better understand the vein geometry
within sections of apparent lateral displacements.
26.1 Proposed Exploration Budget
The following proposed exploration budget is for a 12 month term during which time PeruGold
would begin fulfilling the above recommendations, as well as initiating exploration programs on
the other veins identified to date on the Urumalqui property. The proposed drilling in the
following cost estimate has been limited to 2,000 metres which might be accomplished from
existing drill sites utilizing the current exploration permit. Further drilling will be required to
complete the in-fill drilling recommendation but such work will require submittal and approval
of an Environmental Impact Statement which PeruGold is presently preparing and approval of
another exploration permit from the appropriate governmental agencies.
Check assaying of suspect 2011 SRM samples plus any re-sampling and assaying of samples
within the suspect sample batches should be carried out in the near term before the main in-fill
drilling program commences.
The documentation of the channel samples should ideally include the easting, northing and
elevation coordinates for the start and end of each sample, plus a detailed description of each
sample material, width and depth of the channel, and method of collection. The work could be
conducted prior to and during the proposed drilling program.
It is anticipated that the review of the geological and structural aspects of the Urumalqui vein
structure would be carried out concurrently with the in-fill drilling which should initially target
26-1 MQes
the displaced segments of the vein. In addition, those areas with inferred vein projection such as
down depth and to the southeast should be test drilled at this time.
The proposed budget in Table 26-1 also includes a preliminary metallurgical study to assess the
best methods of processing and recovering gold and silver from the Urumalqui vein material at
various stages of oxidation.
Table 26-1: Proposed 2012 Exploration Budget
Estimated Cost
Description
(US $)
Exploration Manager – Project Management and Supervision ($7,000/month) 84,000
Senior Geologists – Field Supervision, Mapping, Trenching, Logging
(1X11 Months and 1X6 Months @ $4,500/Month, each) 76,500
Junior Geologists – Field Assistance, Trenching (2 @ $2,500/Month) 60,000
Project Assistant ($650/Month) 7,800
Field Workers (6X6 Months ad 12X6 Months @ $300/Month, each) 32,400
Field Office and Accommodations ($1,000/Month) 12,000
Food ($600/Month) 7,200
Truck Rental – 2 Trucks ($75/Month, each) 1,800
Transportation ($5,000/Month) 60,000
Field Camp Supplies, Fuel and General Expenses ($5,000/Month) 60,000
Airfare – Peru ($1,000/Month) 12,000
Offsite Lodging/Board (4 Days/Month @ $100/Day) 4,800
Permitting – Phase II Drilling Program 50,000
Community Relations – Consultants ($2,500/Month) 30,000
Community Relations – Projects ($3,000/Month) 36,000
Metallurgical Testwork on Urumalqui Vein Mineralization and Reporting 150,000
Surveying – DDH Collar and Roads and Channel Sampling Site Surveying 11,000
Diamond Drilling – 2,000 metres @ $150/metre Direct Drilling Costs 300,000
Analyses – Core and Surface Samples (2,000 Samples @ $35/Sample) 70,000
Drilling QA/QC and Check Assaying (200 Samples @ $35/Sample) 7,000
Check Assaying of Select 2011 Samples (200 @$35/Sample) 7,000
Data Plotting, Reporting and Documentation – Summary Report with Recommendations 15,000
Contingency (~10%) 105,500
Total Estimated Costs of Recommended 2012 Exploration Work $1,200,000
26-2 MQes
SECTION 27
REFERENCES
27.0 REFERENCES
AndeanGold Ltd., 2011: Various exploration reports, data and maps pertaining to the Urumalqui
property, and documents describing the Gitennes-AndeanGold option agreement.
Berger, B. R. and Eimon, P, 1983: Conceptual models of epithermal precious metal deposits,
Shanks, W. L., editor, Volume on Unconventional Mineral Deposits, American Institute
of Mining, Metallurgical and Petroleum Engineers, Inc. (1983), pp. 191 - 205.
Blackwell, J., 2011: Personal communications.
Blackwell, J. D., 2009: Technical Report to March 30, 2009 on the Urumalqui Property,
Department of La Libertad, Peru; Non-independent 43-101 technical report prepared for
Gitennes Exploration Inc., pp. 56.
Blackwell, J. D., Fernández-Baca, A. and Foster, J. R., 2003: Progress Report to July 1 2003 on
the Urumalqui Property, Department of La Libertad, Perú, Cuadrángulos 17-f
(Salaverry) & 17-g (Santiago de Chuco); company report for Minera Corimalqui S. A.,
pp. 45.
Bolaños, J. E., 2011: Personal communications and short private report documenting additional
information on the geology of the Urumalqui vein structure and its exploration, pp. 8.
Ciali, A., 2011: Personal communications.
Cossio N. A., 1964: Geología de los Cuadrángulos de Santiago de Chuco y Santa Rosa
(Hojas 17-g y 18-g); Boletín No. 9, Comisión de la Carta Geológica Nacional Perú.
Cossio N. A. and Jaen, H., 1967: Geología de los Cuadrángulos de Puemape, Chocope, Otuzco,
Trujillo, Salaverry, y Santa (Hojas 16-d, 16-e, 16-f, 17-e, 17-f y 18-f); Boletín No. 17,
Servicio de Geología y Minería Perú.
Espinoza, S., 2004: Geophysical Report – 3D Induced Polarization Survey on the Urumalqui
Project for Gitennes Exploration Ltd.; private report for Gitennes Exploration Inc.
Foster, J. R. and Fernández-Baca, A., 2004: Progress Report to December 31 2003 on the
Urumalqui Property, Department of La Libertad, Perú, Cuadrángulos 17-f (Salaverry)
& 17-g (Santiago de Chuco); company report for Minera Corimalqui S.A., pp. 87.
Foster, J. R., Fernández-Baca, A. And Blackwell, J. D. 2005: PROGRESS REPORT TO

DECEMBER 31 2004 Progress Report to December 31 2004 on the Urumalqui Prpoerty,
Department of La Libertad, Perú, Cuadrángulos 17-f (Salaverry) & 17-g (Santiago de
Chuco); company report for Minera Corimalqui S.A., pp. 82.
27-1 MQes
Gitennes Exploration Inc., 2011: Various exploration reports, data and maps pertaining to the
Urumalqui property, and documents describing the mineral concessions and ownership.
Morrison, G. W., Jaireth, S and Guoyi, D 1995: Textural zoning in epithermal quartz veins,
published by Klondike Exploration Services, Townsville, Queensland,
Australia.(Originally produced in 1990 for the Gold Research Group at James Cook
University as part of AMIRA Project P247, epithermal gold deposits in Queensland).
Navarro, P. and Rivera, M., 2008: Stratigraphy of the synorogenic Cenozoic volcanic rocks of
Cajamarca and Santiago de Chuco, northern Peru; 7th International Symposium on
Andean Geodynamics (ISAG 2008, Nice), Extended Abstracts: 369-372.
Panteleyev, A., 1991: Gold in the Canadian Cordillera - A Focus on Epithermal and Deeper
Deposits; in Ore Deposits, Tectonic and Metallogeny in the Canadian Cordillera, B.C.
Ministry of Energy, Mines and Petroleum Resources, Paper 1991-4, pp. 163 - 212.
Panteleyev, A., 1996: Epithermal Au-Ag: Low Sulphidation, in Selected British Columbia
Mineral Deposit Profiles, Volume 2 - Metallic Deposits, Lefebure, D. V. and Hõy, T,
Editors, British Columbia Ministry of Employment and Investment, Open File 1996-13,
pp. 41 - 44.
Pineault, R., 2003: Induced Polarization/Resistivity and Magnetic Surveys, Urumalqui

Project; private report for Gitennes Exploraciones Perú S. A.
Sánchez, C., 2003: Informe sobre actividades de exploración, muestreo y mapeo a escala 1:5,000
en la propiedad de Urumalqui, La Libertad, Perú
Servicio de Geologia Y Minerio, 1980: Geological Map of Salavarry, Map-Sheets 17e and 17f;
Scale 1:1 000 000.
Sinclair, A. J. and Blackwell, G. H., 2002: Applied Mineral Inventory Estimation. Cambridge
University Press, pp. 111-113
Sillitoe, R. H., 1993: Epithermal Models: Genetic Types, Geometrical Controls and Shallow
Features; in Mineral Deposit Modeling, Kirkham, R. V., Sinclair, W. D., Thorpe, R.I. and
Duke, J. M., Editors, Geological Association of Canada, Special Paper 40, pp. 403 - 417.
Thompson, M. and Howarth, R. J., 1976: Duplicate Analysis in Geochemical Practice. Part 1,
Theoretical Approach and Estimation of Analytical Reproducibility, Analyst, vol. 101,
pp. 690-698
Tumialán, P. H., 1982: Prospecto Urumalqui; in Jueves Mineros: Mineralización del

Yacimiento de Salpo; Universidad Nacional de Ingeniería, Departamento de Geología,
Lima, Perú.
27-2 MQes
White, N. C. and Hedenquist, J. W., 1990: Epithermal Environments and Styles of
Mineralization; Variations and their Causes and Guidelines for Exploration; in
Epithermal Gold Mineralization of the Circum-Pacific; Geology, Geochemistry, Origin
and Exploration, II; Hedenquist, J. W., White, N.C. and Siddeley, G., Editors, Journal of
Geochemical Exploration, Volume 36, pp. 445 - 474.
Valdivia, J. 2008: Reporte Geologico del Proyecto Urumalqui, Region La Libertad, Peru a
diciembre del 2007, prepared for Minera Corimalqui S.A.
27-3 MQes
Appendix 1 – Mineral Concession Documents
Appendix 2 – Sample Preparation and Analytical Procedures

Geochemical Sample
PE MM OPE 7.5.1 Preparation Procedures l PGE Rev. 06-09 MSW ESP
O-001
1. Objetive.
Establish standard procedures in the preparation of geochemical samples (rock, core,

debris, soil, sediment, etc.). From samples reception to be sent as a pulp in our
laboratories, respectively
2. Procedure Description. - The preparation has the following steps:
2.1. - Sample Reception
Upon receipt of each batch of samples, the samples are checked, sorted and are recorded
in the format FGEO-002 Entry sample sheet to laboratory.
At each stage of the encoding process is reviewed for each sample set, verifying that
follows a straight ascending order.
2.2 For samples such as: rock, debris, cores
2.2.1 Weighing, recording and ordering of samples:
After entry of the samples is necessary to sample the batch record, customer, date,
sample number in the format FGEO-002 Entry sheet samples to the laboratory
Then the samples are sorted and placed in numbered trays holding the initial order to be
subsequently entered into the oven.
2.2.2 Drying.
The ordered sample is entered in steel trays to the drying oven. The entry of baked
samples is recorded in the format registry FGEO010 input and output samples at the stove
The drying temperature is 105 ° C ± 5 ° C, depending on the chemical element by which

the sample will be analyzed (S, Hg., Sb, As require a drying temperature of about 50 ° C to
prevent evaporation in the sample during the drying process).
The drying time varies from 8 to 10 hours, depending mainly on sample type and moisture.
Then proceed to remove the sample from the oven and cool to normal conditions for 15
minutes.
Finally the samples are weighed; the dry weight is recorded in the format Sample Control
Heavy FGEO-002.
The flow diagram of this stage is in Annex A.

Geochemical Sample
O-001
1. Drying Oven 2. Income wet samples in the oven
2.2.3 Crushing Process: Primary Crusing:
The primary crushing process, is the first stage of the reduction in sample size for this
purpose we have a jaw crusher prior to the crushing of the samples is the cleaning of the
jaws by barren quartz. To ensure the preparation of samples free of contamination the
insertion of blanks be performed before starting the crushing of the batch and the
remaining 3% of the lot also inserting blanks at the supervisor`s discretion This will be
recorded in the format control FGEO 053 insertion of blanks. SeeInstructions for quality
control of sample preparation
The entry of the samples by crushing stage is recorded in the format FGEO-008Entry-Exit
Registration of samples at the crusher..
.
To ensure that the sample size obtained in this step is the proper, granulometric test is
performed or particle size control using the corresponding screen.
Such particle size control is performed at the first sample and the remaining 3% of the
lot,because the use can loosen the jaws, but this percentage may vary according to
customer specifications. Samples must reach a percentage equal to or greater intern
70% to mesh 1/4 "ASTM.The number of controls may be increased according to the
needs.
The particle size control is recorded in the format Granulometric FGEO052 Controlthe
Primary Crushing.
The cleaning of the jaws from sample to sample, is performed using sterile quartz
(which will be discarded), steel brushes and airflow. See Instructions for quality
control. The flow diagram of this stage is in Annex A.

Geochemical Sample
O-001
1. Jaw Crusher 2. Sample Access to crusher
Secondary Crushing:
The sample coming from the primary crushing Mesh 1 / 4 " has to pass through the
secondary crusher roller type, prior to crushing of the samples is the necessary cleaning
roller with barren quartz which will be discarded.
To ensure the samples preparation free of contamination the insertion of blanks has to be
performed before starting the crushing of the batch and the remaining 3% of the lot also
inserting blank at the supervisor iscretion following the same pattern of primary
crushing. Control FGEO-053 insertion of blanks.
See Instructions for quality control of sample preparation. The entry of the samples
bycrushing stage is recorded in the format FGEO008 Entry-Exit Registration of samples at
the crusher.
To ensure that the sample size obtained in this step is the proper test is performed
particle size or particle size control using the corresponding screen.
This particle size control is performed at the first sample and the remaining 3%
of the lot, because due to the use of rollers can loosen, but this percentage can
vary according to customer instructions. In granulometric test samples it must reach
a percentage equal to or greater intern 90% to 10 mesh ASTM. The number of
controls may be increased according to need. The particle size control is recorded in
the format Granulometric FGEO006 Controlof secondary crushing.
The cleaning process of the rollers from sample to sample, is performed using
sterile quartz (which will be discarded), steel brushes and airflow. See Instructions for
quality control. The flow diagram of this stage is in Annex A.

Geochemical Sample
PE MM OPE 7.5.1 Preparation Procedures l PGE Rey. 06-09 MSW ESP
O-001
Note: The insertion of internal control samples will be coordinated from the drying
2.2.4 Homogenized and quartered.

a. Homogeneized:
‐ The sample reduced to 90% from the grinding process is entered into the
Jones Riffle splitter, where you get two equal parts.
‐ These are poured simultaneously over the channel of the splitter. The halves
are obtained again discharged, this operation is repeated
3 times to ensure complete homogenization and avoid the phenomenon of
segregation.
‐ Then it is quartered.
b. Quartering:
‐ Alsothe Jones Riffle equipment is used. The quartering precedes pouring gutters shown
on obtaining two halves, one half is again divided, and this operation is repeated to reduce
the sample to a weight of 150 or 180 gr as customer instruction.
‐ The 150 grams or 180 grams of sample to pass to the next stage of the preparation process
(spray) in their plastic wrappers.
-The equipment iscleaned betweensamples by compressed air flows bristlebrush.
The remaining material becomes part of the rejection, which will
be placed in plastic wrap which will be sealed and properly
identified in polypropylene pouches, identified with their respective
GEO No. and stored for a period of 3 months or according
to customeragreement which is registered in the Registry format
-011FGEO Registry entry for pulps and rejects storing . Once a month will be held on
cracking control of sample preparation, for it rejects an analysis of the above mentioned-.
This will be recorded in the format FGEO-054 Quartering

Geochemical Sample
O-001
Control in the preparation of samples. See Instruction quality control. The flow diagram of
thisstage is in Annex A.
4. Quarte Jones Riffle type
2.2.5 Powderized.
Before starting with the first sample (150 - 180 g) powderizing was performed on a
sample of powdered cleaning (silica sand) which will be discarded,
To ensure the preparation of samples free of contamination the insertion of blanks will be
performed before starting the batch powder and 3% of the remaining lot also targets were
inserted at the supervisors’ discretion. Insertion of blanks control FGEO-053 . See
Instructions for quality control sample preparation. The entry of the samples at the stage
of powderizing is registered in the format FGEO-009EntryExit Registration of samples to

the spray.
To ensure that the sample size obtained in this step the particle size
or particle size control proper test is performed using the corresponding

screen.
This particle size control is performed at the first sample

and the remaining 3% of the lot, but this can vary according to client instructions. Samples
must reach a percentage equal to or greater intern 95% to 140 mesh ASTM. The number
of controls may be increased according to need.
The particle size control is recorded in the format FGEO007 Powdering Control
Samplegranulometric.
The cleaning of the plate and rings, from sample to sample is done by compressed air
flows will be used silica sand (which will be discarded). The flow diagram of thisstage
is in Annex A.

Geochemical Sample
O-001
5. Powderizer
2.2.6 Homogenized, weighed and tagged.
At this stage the thin pulp (105 microns approx.) Powder fraction (150-
180 g) is homogenized by the method of role-playing in a blanket Kraff
paper 50cm x 50cmapprox. (the role will be discarded after use for each
sample).
Once the sample has been homogenized separating proceeds from the same sample,
each one is enveloped in polyethylene bags respectively to be finally sealed, avoiding
where possible the presence of air. From this it produces a fine sample of 150 to 180 g
and a thin remnant, which will be stored as counter sample. Samples will be sent to the
respective tests are ordered from lowest to highest and each is attached on the respective
bar code. Finally they are sent to the area of the sample preparation laboratory where the
sample bags will be cut and ready for the respective analysis.
2.3 For Samples Type: Soil, sediment

2.3.1 Drying.
For this type of drying samples is the same as item 2.1.1.
2.3.2 Disgregation
Disgregate dry sample

using a roller .
2.3.3 Preparation:
For this type of sample preparation is done by sieving. It has the following preparation
steps: After the sample has been weighed in the previous process.
Scre en is selected accordi ng to the ins tructi on of the clien t , usu all y mes h
80.10 0. The sample is pumped into the mesh screen 80 or 100, as applicable. You can
get three types of weight in this process:

Geochemical Sample
O-001
1. If you obtained after sieving is in excess, mix and quartered
the required weight,passing the sample to the spray, to get an
intern from 95% to 140-mesh ASTM
2. If you what obtained after sieving is in default, pass the entire sample
to the pulverizer for a short time, disintegrated
and sieved again using 80 mesh, 100, pulverize the fraction to
obtain a passing for a 95% to 140-mesh ASTM
3. If you obtained the required weight, passing the sample to dust

to get an intern from 95% to 140-mesh ASTM
4. From each batch of samples to the first and 3% the batch test is
performed to sieve grain powder to ensure the sample (95% -
140 mesh ASTM).
5. This is recorded in the format of Spray Control Sample Granulometric.

6. Colocar la muestra en sobres plásticos, y selladas al calor.
3. Storage of pulp and rejects
The coarse rejects resulting of the process of preparing product samples will be stored in
bags or plastic bags and numbered identification code for a period of 3 months without
charge, at the end of this period will contact the customer to decide their waste or
additional charge to maintain custody of the rejection.
The remaining fine pulps are stored in cardboard boxes numbered, and an identification
code for a period of 1 month without charge, at the end of this period the same way as
the above was communicated to the client to determine their waste or additional charge
to maintain custody of the rejections.
The income of both coarse and fine rejects the sample store is recorded in
the format-011 FGEO delivery control pulp and rejections.

Geochemical Sample
O-001

Geochemical Sample
O-001
4. CONTROL REGISTERS: The records used throughout the sample

preparation stage are as follows:
FGEO-002 Sample Sheet lab entry.
FGEO-010 Samples Record Entry and Output

to the stove. FGEO-008 Samples Record Entry
and Output from Crusher FGEO-006 Secondary
Crushing Granulometric Control FGEO-052
Primary Crushing Granulometric Control.
FGEO-009 Record Entry and Exit from the
duster FGEO-007 Dusting granulometric
Control Sample FGEO-011 Entry Register of
the pulps and rejects store. FGEO-053 Control
insertion of blanks.
FGEO-054 Quartering Control in the sample preparation.

Geochemical Sample
O-001

Anexo A
DIAGRAMA DE FLUJO DEL PROCESO DE PREPARACIÓN DE
MUESTRAS 1. SECADO:
rmat and exit
les for
ht of dry .format
1. Objective
Establishing a test method for determining total number of elements by atomic absorption
spectroscopy.
MAX
LIMITE
ELEMENT METHOD MIN LIMIT
Ag AA (ISP-140) 0.2ppm 300ppm
2. Application Limit
This method is applicable for determining the total content of Ag, Cu, Pb, Zn,in geochemical
exploration samples by atomic absorption spectroscopy.
ELEMENT METHOD LIMITE MIN MAX
LIMIT
Ag AA (ISP‐140) 0.2ppm 300ppm
3. Principle
The method is based on the ability of dissolution of minerals by a total sample digestion with a
mixture of 4 acids. The final determination of the elements is performed by Atomic Absorption
Spectroscopy.
The elements are quantified according to the absorption of radiant energy from ground state
atoms.
4. Reagents
Reagents will be used recognized analytical grade and deionized and / or purified water.
4.1 Nitric Acid (67% ‐ 70% P.A.)
4.2 Hydrochloric acid (36% ‐ 38% P.A.)
4.3 Hydrofluoric acid (48% ‐ 51% P.A)
4.4 Perchloric acid (69% ‐ 72% Q P)
4.5 Aluminum nitrate nonahydrate (98‐99% Q. P.)
4.6 Lanthanum oxide (98% ‐ 100% Q P.)
4.7 Solution of Al (NO3) 3 (3.5% Q P)
4.8 La2O3 solution (1% Q. P.)
5. Materials and Equipment
5.1 Analytical balance, accuracy 0.1 mg
5.2 Atomic Absorption Spectrophotometer
5.3 250 mL Teflon cups.
5.4 Spatula, brush, spray bottle
5.5 Acid test tube or dispenser.
5.6 25 mL test tubes
5.7 Baguette
5.8 Parafilm.
6. Process Diagram

7.
MUESTRA
Weighing
0.2-2.0 g
HNO3 (4.1) HCLO4 (4.4)

7 5 mL
HCL (4.2) DIGESTION
HF ( 4.3 )
7 5 mL
Cool
HCL (4.2) al 10% del

Volumen de la fiola o
tubo
Pasty State
Cool
Transfer
Afores
The transfer is deionized
water. Mo is
transferred to aluminum nitra
te (4.5)
Stopper the tubes or fiol
Shake
DECANT
ENVIAR
Reading
1. Objective
Establishing a test method for determining total of Multi‐elements by Inductively Coupled Plasma ‐
Optical Emission Spectrophotometer (ICP‐OES).

This method is applicable for the determination of 51 elements including: Ag, Al, As,B, Ba, Be, Bi,
Ca, Cd, Ce, Co, Cr, Cu, Dy, Fe, Ga, Ge, Hf, Hg , In, K, La, Li, Mg, Mn, Mo, Na, Nb, Nd, Ni, P, Pb, Rb, Re,
S, Sb, Sc, Se, Sm, Sn, Sr, Te, Th, Ti , Tl, U, V, W, Y, Zn and Zr in geochemical exploration samples.
Distributed packet (32, 33.35,40.44 items)

3. Principle
The method is based on the ability of dissolution of minerals by a total sampledigestion with a
mixture of 4 acids. The final determination of the elements is performed by Inductively Coupled
Plasma Spectroscopy ‐ Optical Emission Spectrophotometer(ICP‐OES). The elements are quantified
according to the emission of radiant energy emitted by atoms in the ground state.

4. Reagents
Use of recognized analytical grade reagents and deionized water and / or purified.
4.1 Nitric acid (67% ‐ 70% P.A.)
4.2 Hydrochloric acid (36% ‐ 38% P.A.)
4.3 Flourhydric Acid (48% – 51% P.A)
4.4 Perchloric acid (69% ‐ 72% Q P)

5. Materials and Equipment
5.1 Analytical balance, accuracy 0.1 mg.
5.2 ICP‐OES (Inductively Coupled Plasma ‐ Optical Emission Spectrophotometer).
5.3 Hot plate
5.4 250 mL Teflon vessels
5.5 Spatula, brush, spray bottle
5.6 Acid test tube or dispenser.
5.7 25 mL test tubes.
5.8 Baguette
5.9 Parafilm

Process Diagram
Sample
Weigh
0 25 g
Digester to DRY T=160° C

3 ml HF (4.4)
First Phase
Cool
7.5 ml HNO3 (4.1)

Digester to Dryeness
7.5 ml HCl (4.2) T= 180° C
2 mL HCLO4 (4.4) First Phase
5 ml HCl (4.2) Resume
AGUA DESIONIZADA Transfer
AGUA DESIONIZADA Afores Vol = 25 ml
Agitate
Transfer Plastic
Tube
Reading By ICP-OES

Au Determination
PE MM LAB 7.5.1 exploration samplesISP- Rev. 03-08 MSW ESP
330
Página 1 de 4
1. Objetive
Applying the analytical procedure to determine Gold in geochemical exploration samples.
This method is applicable for the determination of gold in geochemical explorationsamples..
ORO BY FIRE ASSAY
Limits
Elemento Descripción ppm
Au by Fusión and AAS
Au 30g Sample weight 0.005-5
50g Sample weight 0.005-5
ANALISIS DE ORO FIRE ASSAY / GRAVIMETRIC
Limits
Element Description ppm
Au by Fusión and finalized by
Gravimetry
30g Sample
Au Weight >5
50g Sample
Weight >5
3. Reagnts
During the analysis, use only reagents of recognized analytical grade. Deionized
water should be used at all times.
4.1. Nitric Acid
4.2. Hydrochloric Acid

4.3. Bórax
4.4. Nitric Acid
Au Determination
330
Página 2 de 4
4.5. Geochemical flux prepared.
4.6. Potassium nitrate
4.7. Flour
4.9 parafilm paper
4.10 Ammonia solution .
Au Determination
330
Página 3 de 4
Au Determination
330
Página 4 de 4

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MQes

JULCÁN DISTRICT, DEPARTMENT OF LA LIBERTAD, PERU

Mine and Quarry Engineering Services, Inc.

December 22, 2011

Effective Date: November 8, 2011

Signed on December 22, 2011 by,

(Signed by C. Kaye) (Signed by J. A. McCrea)

(Signed by J. Douglas Blanchflower)

Signed by Christopher Kaye

Signed By James A. McCrea

Signed By J. Douglas Blanchflower

1.0 SUMMARY .................................................................................................................... 1-1

Appendix 1 – Mineral Concession Documents

Table 1-1: Inferred Mineral Resource Estimate........................................................................... 1-6

Figure 4-1: Location Map ............................................................................................................ 4-2

1.1 Introduction and Background

1.1.1 Property Description and Ownership

1.1.2 Accessibility and Local Conditions

1.2 Deposit Summary

1.2.1 Geology and Mineralization

The precious metal-bearing mineralization is typical of a ‘low sulphidation’ epithermal style

1.2.2 Exploration Status

1.2.3 Mineral Processing and Metallurgical Testing

1.2.4 Mineral Resource Estimate

Table 1-1: Inferred Mineral Resource Estimate

Cut-Off Tonnes Gold Gold Silver Silver

1.2.5 Environmental and Permitting

1.3 Conclusions and Recommendations

1.3.1 Mineral Resource Estimate

1.3.2 Mineral Processing and Metallurgical Testing

No mineralogical analysis relevant to optimizing metallurgical treatment has been performed to

1.4 Risks and Opportunities

1.4.1 Mineral Resource Estimate Risks

1.4.2 Mineral Resource Estimate Opportunities

1.4.3 Mineral Processing and Metallurgical Testing – Risks

1.4.4 Mineral Processing and Metallurgical Testing - Opportunities

1.5 Proposed Exploration Budget

2.1 Project and Issuer

2.2 Site Visit

2.3 Principal Sources of Information

2.4 Standard Terms and Abbreviations

Standard terms and abbreviations are as follows:

Table 2-1: Standard Terms and Abbreviations

Terms Description Terms Description

3.0 RELIANCE ON OTHER EXPERTS

4.0 PROPERTY DESCRIPTION AND LOCATION

4.1 Project Location and Description

Table 4-1: Mineral Concession Information (after Blackwell, 2009)

Concession Ownership Codigo Status Area (ha)

4.2 Property Ownership

Figure 4-1: Location Map

4.5 Environmental Regulations, Liabilities and Permitting Issues

According to Blackwell (2009), “Two environmental evaluations (Evaluación Ambiental de

Commitments made by Corimalqui as part of the permitting process included re-vegetation,

5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND

5.2 Climate and Vegetation

5.3 Local Resources and Infrastructure

6.1 Regional Mining History

6.2 Property Exploration and Mining History

 2003 – Work includes: commissioning a topographic map from air photographs

7.0 GEOLOGICAL SETTING AND MINERALIZATION

7.1 Regional Geology

The Cenozoic (Eocene to Miocene) Calipuy Group forms a relatively flat-lying,