Pre-Feasibility Study

Copiapó, Chile
NI 43-101 Technical Report

on
Pre-feasibility Study
Submitted by:
Graham Holmes, P. Eng.
Alex Duggan, BSc., M. Sc. P. Eng.
Carlos Guzmán, Mining Eng., MAusIMM
David Coupland, BSc., CSFC, MAusIMM
John Wells, BSc, MBA, FSAIMM
Louis Nguyen, P. Eng.
th
Effective Date: January 16 , 2012
Project number: C 580
CERTIFICATE OF QUALIFIED PERSON
Graham Holmes
Jacobs
1920 Yonge Street, Suite 301 South
Toronto, Ontario M4S 3E2, Canada
Telephone: (416) 343-9204
Fax: (416) 343-9300 fax
Graham.Holmes@jacobs.com
I, Graham Holmes do hereby certify that:

1. I am a Minerals Processing Engineer. My address is, Suite 301 S 1920 Yonge St., Toronto,
ON, Canada, M4S 3E2.
2. This certificate applies to the Technical Report titled "Prefeasibility Study for the Caspiche
Project, Region III, Chile, for Exeter Resource Corporation", effective January 16th, 2012.
3. I graduated with a Bachelor of Science Degree in Minerals engineering from the Royal School
of Mines, University of London, U.K., in 1966.
4. I am a life member of CIMM and a Professional Engineer registered in Ontario.
5. I have worked continuously for 45 years in the mining industry since my graduation from
University. I have held senior positions with operating companies as well as for Engineering
and Consulting companies. I have worked with many minerals, but in particular in the areas of
gold and copper. For the past 12 years most of my experience has been on large copper and
gold operations and projects in South America, particularly in Chile, Peru and Brasil.
6. I have read the definition of “qualified person” set out in National Instrument 43-101 –
Standards of Disclosure for Mineral Projects (“NI 43-101”) and confirm that by reason of my
education, affiliation with a professional association (as defined in NI 43-101) and past relevant
work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI
43-101.
7. I most recently personally inspected the Caspiche Property on October 29th, 2011.
8. I am responsible for the preparation of Items 1.4, 1.5, 2, 3, 13, 17, 25, 26.1, 26.3 of the
Technical Report (NI 43-101) of the Prefeasibility Study for the Caspiche Project, Region III,
Chile, for Exeter Resource Corporation, effective January 16th, 2012.
9. I am independent of Exeter Resource Corporation as described in section 1.5 of NI 43-101.
10. I have read NI 43-101 and the Technical Report has been prepared in compliance with
NI 43-101.
11. As of the effective date of the Technical Report, 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.
Dated this at Toronto on January 16th, 2012
Signed and Sealed

Graham Holmes
BSc, ARSM, P. Eng
Process Engineering Specialist
Alex Duggan
Jacobs
1920 Yonge Street, Suite 301 South
Toronto, Ontario M4S 3E2, Canada
Telephone: (416) 343-9204
Fax: (416) 343-9300 fax
Alex.Duggan@jacobs.com
I, Alex Duggan do hereby certify that:

1. I am I have been retained by Aker Solutions Canada Inc., Davisville Centre, as a Manager
Estimating. My address is Suite 301 South, 1920 Yonge Street, Toronto Ontario, Canada, M4S
3E2.
3. I graduated with a Bachelor of Science Degree in Civil Engineering from the University of
Aston, Birmingham, U.K., in 1982. In addition, I have obtained a M.Sc in Planning from the
University of Salford, U.K. in 1984.
4. I am a current Member of the Professional Engineers Ontario.
5. I have worked as an Estimator in the mining and heavy industries for 25 years.
43-101.
8. I am responsible for the preparation of Items 21, 22 and 24, and portion of Items 1 and 25 that
are directly relevant to those items I am fully responsible for of the Technical Report (NI 43-
101) of the Prefeasibility Study for the Caspiche Project, Region III, Chile, for Exeter Resource
Corporation, effective January 16th, 2012.
10. I have had no prior involvement with the Caspiche Project.
NI 43-101.
Dated this at Toronto Canada on January 16th, 2012
Signed and Sealed

Alex Duggan
B.Sc., Civil Engineer; M.Sc., Planning
Manager, Estimating at Aker Solutions Canada Inc.
Member of Professional Engineers Toronto
Carlos Guzmán
NCL
General del Canto 235
Providencia, Santiago, Chile
Telephone: (562) 651-0800
Fax: (562) 651-0890
cguzman@ncl.cl
I, Carlos Guzmán do hereby certify that:

1. I am Principal and Project Director with the firm NCL Ingeniería y Construcción Ltda.,
Santiago, Chile. My address is General del Canto 235, Providencia, Santiago Chile.
3. I am a practicing Mining Engineer and a member of the Australasian Institute of Mining and
Metallurgy (AusIMM, N° 229036); and a Registered Member of the Chilean Mining
Commission.
4. I am a Graduate of the Universidad de Chile and hold a Mining Engineer title (1995).
5. I have practiced my profession continuously since 1995.
work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-
101.
7. I have personally visited the Caspiche property during April 12 th, 2011
8. I am fully responsible for the preparation of Items 1.3, 15, 16 and 20 and part of items 21, 22,
25 and 26 that are directly relevant to those items I am fully responsible for of the Technical
Report (NI 43-101) of the Prefeasibility Study for the Caspiche Project, Region III, Chile, for
Exeter Resource Corporation, effective January 16th, 2012.
10. I do not have nor do I expect to receive a direct or indirect interest in the Caspiche property of
Exeter Resource Corporation, and I do not beneficially own, directly or indirectly, any securities
of Exeter Resource Corporation or any associate or affiliate of such company of Exeter
Resource Corporation or any associate or affiliate of such company.
11. I have read NI 43-101 and Form 43-101F1 and the Technical Report has been prepared in
compliance with the Instrument and Form.
Dated this at Toronto on January 16th, 2012
Signed
Carlos Guzmán
Mining Engineer, MausIMM (229036)
Registered Member of the Chilean Mining Commission
Principal / Project Director, NCL Ltda.
David Ted Coupland

Director - Geological Consulting, Principal Geostatistician
Level 4, 1111 Hay Street, West Perth 6005 Western Australia
phone: +61 (08) 9442 2111
fax: +61 (08) 9442 2110
I, David (Ted) Coupland do hereby certify that:

1. I am a Director and Principal Geostatistician of Cube Consulting Pty Ltd. My address is
Level 4, 1111 Hay Street, West Perth 6005.
Project, Region III, Chile, for Exeter Resource Corporation", effective January 16, 2012.
3. I graduated with a Bachelor of Science Degree (Geology) from the University of New England,
Australia in 1987. In addition, I have obtained a Post Graduate Diploma in Mineral Economics
from Macquarie University, Australia in 1995 and a Post Graduate Diploma in Applied Finance
and Investment from the Securities Institute of Australia in 1997. I have completed a Post
Graduate Specialisation in Geostatistics (CFSG) from the Paris School of Mines,
Fontainebleau, France in 2007.
4. I am a current Member of the Australian Institute of Mining and Metallurgy (AusIMM No.
109925). I am a holder of AusIMM Chartered Professional (CP) accreditation in the discipline
of Geology. I am also a member of the Mineral Industry Consultants Association (MICA).
5. I have worked as a geologist continuously for 24 years since my graduation from University. I
specialize in mineral resource estimation and mine geology.
43-101.
7. I most recently personally inspected the Caspiche Property on September 21st, 2011.
8. I am fully responsible for the preparation of Sections 4 to 12 inclusive, 14, 23 and 27, and
portions of Items 1 and 25 that are relevant to those items of the Technical Report (NI 43-101)
of the Prefeasibility Study for the Caspiche Project, Region III, Chile, for Exeter Resource
Corporation, effective January 16, 2012.
10. I have had no prior involvement with the Caspiche Project.
NI 43-101.
Dated this 16th Day of January 2012
Signed
David (Ted) Coupland
BSc DipGeoSc CFSG ASIA MAusIMM(CP) MMICA
Director – Geological Consulting - Principal Geostatistician
John Wells
Metallurgical Consultant
7445 Fleming Road
Vernon, BC, Canada, V1H 1C1
Telephone: (250) 549-7443
Fax: (250) 549-7403
jawnetc@telus.net
I, John Wells do hereby certify that:

1. I am a Minerals Engineering Consultant. My address is 7445 Fleming Road, Vernon, BC,
Canada, V1H 1C1.
3. I graduated with a Bachelor of Science Degree in Minerals engineering from the University of
London, U.K., 1967. In addition, I have obtained a MBA from University of Sheffield, U.K.,
1971.
4. I am a current Fellow Member of the South African of Mining and Metallurgy (FSAIMM).
5. I have worked continuously for 44 years in the mining industry since my graduation from
University. I have held senior positions with operating companies as well as for Engineering
and Consulting companies. I have worked with many minerals, but in particular in the areas of
gold and copper. In the past 15 years most of my experience has been with large copper and
gold operations in South America, in particularly Chile.
43-101.
7. I most recently personally inspected the Caspiche Property on January 12th, 2011.
8. I am fully responsible for the preparation of Item 19 and part of Item 20 that are directly
relevant to those items I am fully responsible for of the Technical Report (NI 43-101) of the
Prefeasibility Study for the Caspiche Project, Region III, Chile, for Exeter Resource
Corporation, effective January 16th, 2012.
NI 43-101.
Dated this on January 16th, 2012
Signed
John Wells
BSc, MBA, FSAIMM
Metallurgical Consultant
Louis Nguyen, Manager of Engineering, BSc EE, ME, P.Eng.

Jacobs Minerals Canada Inc.
1920 Yonge Street, Suite 301, Toronto, Ontario
Canada, M4S 3E2,
Telephone: (416) 343-9267
Fax: (416) 343-9300
louis.nguyen@jacobs.com
I, Louis Nguyen do hereby certify that:

1. I am a Manager of Engineering for Jacobs Minerals Canada Inc., located at 1920 Yonge
Street, Suite 301, Toronto, Ontario, Canada, M4S 3E2.
3. I graduated with a Bachelor of Science Degree in Civil Engineering from the University of New
Brunswick, New Brunswick, Canada in 1970. In addition, I have obtained a Master of
Engineering Degree from University of Toronto, Toronto, Ontario, Canada, 1997.
4. I am a current Member of the Association of Professional Engineers of the Province of Ontario,
Canada (PEO).
5. I have worked continuously for 22 year in the mining industry since my graduation from
University. I have held senior positions with Engineering and Consulting companies. I have
worked with many minerals, but in particular in the area of gold, nickel and cooper. In the past
10 years most of my experience has been with large copper and gold operations in South
America, in particularly Peru, Chile and Brasil.
43-101.
8. I am responsible for the preparation of Item 18, and portions of Items 1 and 25 that are
relevant to those items of the Technical Report (NI 43-101) of the Prefeasibility Study for the
Caspiche Project, Region III, Chile, for Exeter Resource Corporation, effective January 2nd,
2012.
9. I am independent of Exeter Resource Corporation as described in section 1,5 of NI 43-101.
NI 43-101.
Dated this at Toronto Canada on January 16th, 2012
Signed and Sealed

Louis Nguyen
Louis Duy Nguyen, Manager of Engineering, BSc EE, ME, P.Eng.
IMPORTANT NOTICE
This report was prepared as a National Instrument 43-101 Technical Report for Exeter
Resource Corporation by Aker Solutions (Aker). The quality information, conclusions, and
estimates contained herein is consistent with the level of effort involved in Aker´s services,
based on: i) Information available at the time of preparation, ii) data supplied by outside
sources, and iii) the assumptions, conditions, and qualifications of its contract with Aker.
Caspiche Project
Copiapó, Chile
NI 43-101 Technical Report Caspiche Pre-feasibility Study
Technical Terms and Abbreviations

Abbreviation Acronym
AC Air Conditioning
AACE Association for the Advancement of Cost Engineering
ADIS Automated Digital Imaging System
ADR Adsorption, Desorption, Recovery
Ag Silver
AGP Acid Generation Potential
AIS Air Insulated Substation
Aker Aker Solutions
Anglo Anglo American Norte S.A.
ARD Acid Rock Drainage
As Arsenic
ASC Aluminium Standard
ASTER Advanced Spaceborne Thermal Emission and Reflection Radiometer
ASTM American Society for Testing and Materials
Au Gold
AuEq Gold Equivalent
BFA Bench Face Angle
BLS Base Line Studies
B.O.O. Build/Own/Operate
BWi Bond Work Index
CAPEX Capital Expenditure
CCA Capital Cost Allowances
CCD Counter Current Decantation
CChM Comisión Chillena de Minería
CCRV Concentric Cylinder Rotational Viscometer
CEA Cumulative Expenditure Account
CEMA Conveyor Equipment Manufacturers Association
CFB Earliest Cretaceous Host Rock (Basement)
CIC Carbon in Column
Project No.: C-580 Page ix

January, 2012
Caspiche Project
Copiapó, Chile
CIF Cost, Insurance and Freight

CIF-FO Cost, Insurance and Freight, Free Out
CIL Carbon in Leach
CMC Carboxy Methyl Cellusose
CO Carbon Monoxide
CODELCO Corporación del Cobre
COG Cut off Grade
CO2 Carbon Dioxide
CR Caspiche Regional Drill Hole
CSD Caspiche Diamond Drill Hole (by Exeter)
CSD Critical Solids Density
CSAMT Controlled Source Audio-Magnetotelluric Tensor
CSS Closed Size Setting
Cu Copper
CuEq Copper Equivalent
CUT Central Unitaria de Trabajadores
DCS Distributed Control Systems
DDH Diamond Drill Hole
DDIP Dipole Dipole Induced Polarization
DEM Digital Elevation Model
DEP Dilution Entry Point
DFS Detailed Feasibility Study
DIA “Declaración de Impacto Ambiental”
DP Diorite Porphyry
DTB Diatreme Breccia
DWi Drop Weight Index
EBITA Earnings Before Interest, Tax and Amortization
EBS Environmental Baseline Study
EIA Environmental Impact Assessment
EMPs Environmental Management Plans
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January, 2012
Caspiche Project
Copiapó, Chile
EMABLOS Empresa Minera Mantos Blancos S.A

EPC Engineering, Procurement, Construction
EPCC Ex-pit Crushing and Conveying
EPCM Engineering, Procurement and Construction Management
ESIA Environmental and Social Impact Assessment
ESP Electrostatic Precipitator
EW Electrowinning
FCA Free Carrier Allowed
FDI Foreign Direct Investment
FOB Free On Board
FTA Free Trade Agreements
GA General Arrangement
GDP gross domestic product
GIS Gas Insulated Substation
GIS Geographic Information System
GOH Gross Operating Hars
GPS Global Positioning System
H2SO4 Sulphuric Acid
HDPE High Density Polyethylene
HG Hypogene
HSEC Health, Safety, Environment & Community
HV High Voltage
HVAC Heating, Ventilation and Air Conditioning
ICP Inductively Coupled Plasma
IFC International Finance Committee
IFS Initial Feasibility Study
IIA “Informe de Impacto Ambiental”
IMO International Maritime Organisation
IP Induced Polarization Survey
IPCC In-pit Crushing and Conveying
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January, 2012
Caspiche Project
Copiapó, Chile
IRR Internal Rate of Return

K/Ar Potassium / Argon Geochronology
KCA Potassic-calcic Alteration
Koz Thousand Ounces
kWh Kilowatt-hour
LAM Lithology, Alteration and Mineralization
LCT Locked Cycle Testing
LHD Load, Haul, Dumpers
LME London Metal Exchange
LOM Life of Mine
LV Level Voltage
MAC MacNeill Zone
MASL Metres Above Sea Level
MCC Motor Control Centres
MCE Maximum Credible Earthquake
MDE Maximum Design Earthquake
METT Metallurgy Drill Hole
MIBC Methyl Isobutyl Carbinol
MII Measured, Indicated & Inferred Resources
MISC Miscellaneous
Mlb Million Pounds
MLI McClelland Laboratories International
Mo Molybdenum
MoS2 Molybdenum Disulphide
MTBF Mean Time Between Failures
MTO Material Take-off
MTTR Mean Time To Repair
MV Medium Voltage
MW Mega Watt
NAG Net Acid Generation
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January, 2012
Caspiche Project
Copiapó, Chile
NAV Net Asset Value

NaHS Sodium Hydro Sulphide
NOH Normal Operating Hars
NOx Nitrous Oxides
NPC Net Present Cost
NPV Net Present Value
NSR Net Smelter return
OB Overburden
OECD Organisation for Economic Co-operation and Development
OK Ordinary Kriging
OPEX Operational Expenditure
ORA Option and Royalty Agreement
OSA Overall Slope Angle
OSS Open Size Setting
PAu Gold Price
PCu Copper Price
PAG Potentially Acid Generating
PAX Potassium Amyl Xanthate
Pb Lead
PDIP Pole-Dipole Induced Polarization
PEA Preliminary Economic Assessment
PEX Potassium Ethyl Xanthate
PFS Pre-feasibility Study
PIMA Portable Infra-Red Mineral Analyser
PLS Pregnant Leach Solution
POX Pressure Oxidation
PSA Pit Slope Angle
QA/QC Quality Assurance/Quality Control
QDP Quartz-diorite Porphyry
RAu Projected Gold Recovery
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January, 2012
Caspiche Project
Copiapó, Chile
RCu Projected Copper Recovery

RC Reverse Circulation drill hole
RC´s Refining Charges
RMR Rock Mass Rating
ROM Run of Mine
RQD Rock Quality Designation
RMR Rock Mass Rating
RSEIA Regulation of Systems of Environmental Impact Assessment
SART Sulphidation Acidification Recycling Thickening
SAG Semi Autogenous Grinding
SCADA Security Control and Data Acquisition
SG Supergene
SGS SGS Lakefield
SIC Sistema Interconectado Central (Chilean National Grid)
SID Sideral Drill Hole (Xstrata Ground)
SMC SMC Testing Laboratories
SMU Selective Mining Unit
SNC SNC Lavalin Australia
SOx Sulphur Oxides
SPI SAG Power Index
SRM Standard Reference Material
SXEW Solvent Extraction Electrowinning
TBD To Be Determined
TC´s Treatment Charges
TSF Tailing Storage Facility
TUM Time Utilization Model
UCS Uniaxial Compressive Strength
UPS Uninterruptible Power Supplies
UTM Universal Transverse Mercator
VFD Variable Frequency Drive
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January, 2012
Caspiche Project
Copiapó, Chile
VOLCBX Volcanic Breccia

VSD Variable Speed Drive
XRD X-Ray Diffraction
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January, 2012
Caspiche Project
Copiapó, Chile
Units of Measurement
Unit Abbreviation
American Dollar US$
Canadian Dollar CAD$
Centigrade °C
Centimetre cm
Chilean Peso CLP
3
Cubic metre m
Day d
Dead weight ton (imperial ton – long ton) Dwt
Dry metric tonne Dmt
Foot/feet Ft
Gram g
Gram/litre g/l
Gram/tonne g/t
Hectare ha
Hour H
Kilogram kg
Kilogram per tonne kg/t
Kilo tonne kt
Kilometre km
Kilopascal kPa
Kilovolt kV
Kilovolt amp kVA
Kilowatt kW
Kilowatt hour kWh
Litre L
Litre per second L/s
Megawatt MW
Mega Volt Ampere MVa
Metre m
Project No.: C-580 Page xvi

January, 2012
Caspiche Project
Copiapó, Chile
Unit Abbreviation
Metre per hour m/h
Metre per second m/s
Metric tonne t
Metric tonne per day t/d
Metric tonne per hour t/h
Micron m
Milligram mg
Milligram per litre mg/L
Millimetre mm
Million M
Million tonnes Mt
Million tonnes per annum Mtpa
Part per million ppm
Percent %
Second s
Short ton T
Square metres m2
Tonnes per day t/d
Troy ounce oz
Wet metric tonne wmt
Work Index Wi
Year Yr
Project No.: C-580 Page xvii

January, 2012
Caspiche Project
Copiapó, Chile
Table of Contents Page

1.0 SUMMARY...........................................................................................................30
1.1 PROPERTY, ACCESS AND PERMITS..........................................................................30
1.2 GEOLOGY AND MINERAL RESOURCES .....................................................................32
1.3 MINING AND MINERAL RESERVES ............................................................................32
1.4 METALLURGICAL TESTWORK AND PROCESS DESIGN ................................................35
1.5 PROCESS ..............................................................................................................37
1.6 PROJECT OPERATING AND CAPITAL COSTS .............................................................39
1.7 PROJECT OPPORTUNITIES AND RISKS .....................................................................45
1.8 CONCLUSIONS .......................................................................................................46
1.9 RECOMMENDATIONS ..............................................................................................47
2.0 INTRODUCTION..................................................................................................50
2.1 TERMS OF REFERENCE...........................................................................................50
2.2 EFFECTIVE DATES ..................................................................................................51
3.0 RELIANCE ON OTHER EXPERTS......................................................................52
4.0 PROPERTY DESCRIPTION AND LOCATION ....................................................53
4.1 LOCATION ..............................................................................................................53
4.2 MINERAL TENURE AND AGREEMENTS ......................................................................54
4.3 OPERATIONAL PERMITS AND JURISDICTIONS ............................................................62
5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES,
INFRASTRUCTURE AND PHYSIOGRAPHY ......................................................64
5.1 ACCESSIBILITY .......................................................................................................64
5.2 CLIMATE ................................................................................................................64
5.3 LOCAL RESOURCES ...............................................................................................64
5.4 CURRENT INFRASTRUCTURE ...................................................................................66
6.0 HISTORY .............................................................................................................68
7.0 GEOLOGICAL SETTING AND MINERALIZATION .............................................70
7.1 REGIONAL GEOLOGY ..............................................................................................70
7.2 PROPERTY GEOLOGY .............................................................................................73
8.0 DEPOSIT TYPES.................................................................................................82
9.0 EXPLORATION ...................................................................................................84
9.1 EXETER (2005 – 2011) ..........................................................................................84
9.2 NEWCREST (1996 – 1998) .....................................................................................87
9.3 ANGLO (1986 – 1990)............................................................................................87
10.0 DRILLING ............................................................................................................89
10.1 CASPICHE PORPHYRY ............................................................................................89
10.2 CASPICHE EPITHERMALS ........................................................................................92
10.3 EXPLORATION DRILLING .........................................................................................92
10.4 DRILLING PROCEDURES AND CONDITIONS ...............................................................95
10.5 LOGGING ...............................................................................................................95
10.6 SURVEYS...............................................................................................................96
10.7 DRILLING RESULTS.................................................................................................96
10.8 TRUE THICKNESS OF MINERALIZATION...................................................................103
10.9 ORIENTATION OF MINERALIZATION ........................................................................103
11.0 SAMPLE PREPARATION, ANALYSIS AND SECURITY ..................................104
11.1 SAMPLE PROCEDURES AND PROTOCOLS ...............................................................104
11.2 SAMPLE PREPARATION AND ANALYSIS ...................................................................106
12.0 DATA VERIFICATION .......................................................................................123
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Caspiche Project
Copiapó, Chile
12.1 MINERAL RESOURCE DATABASE AUDITS ...............................................................123

12.2 DRILL HOLE LOCATIONS .......................................................................................124
12.3 INDEPENDENT SAMPLING ......................................................................................125
12.4 EXETER QA/QC...................................................................................................126
12.5 TWINNED HOLES ..................................................................................................127
12.6 CHECK ASSAYING OF SAMPLES GREATER THAN 1 AU PPM .....................................127
12.7 CUBE CONSULTING STATEMENT............................................................................128
13.0 MINERAL PROCESSING AND METALLURGICAL TESTING ..........................129
13.1 INTRODUCTION.....................................................................................................129
13.2 SULPHIDE MINERALIZATION ..................................................................................132
13.3 OXIDE MINERALIZATION ........................................................................................141
13.4 MACNEILL ZONE TESTWORK.................................................................................145
13.5 ONGOING TEST PROGRAMMES .............................................................................147
14.0 MINERAL RESOURCE ESTIMATION ...............................................................150
14.1 DRILLING DATABASE ............................................................................................150
14.2 TOPOGRAPHY ......................................................................................................150
14.3 LITHOLOGICAL MODEL AND DEFINITION OF DOMAINS ..............................................152
14.4 COMPOSITES .......................................................................................................156
14.5 EXPLORATORY DATA ANALYSIS ............................................................................156
14.6 VARIOGRAPHY .....................................................................................................168
14.7 RESTRICTION OF EXTREME HIGH GRADE VALUES ..................................................169
14.8 BLOCK MODEL DIMENSIONS AND GRADE ESTIMATION ............................................171
14.9 DENSITY ..............................................................................................................172
14.10 BLOCK MODEL VALIDATION ...................................................................................172
14.11 RESOURCE CLASSIFICATION AND TABULATION .......................................................179
15.0 MINERAL RESERVES ESTIMATE....................................................................186
15.1 RESERVE CASES FOR EACH OPTION .....................................................................186
15.2 OPEN PIT MINERAL RESOURCES ...........................................................................186
15.3 OPEN PIT MINERAL RESERVES .............................................................................199
15.4 UNDERGROUND MINERAL RESERVES ....................................................................212
15.5 REPORTABLE MINERAL RESERVES STATEMENT BY SCENARIO ................................217
16.0 MINING METHODS............................................................................................221
16.1 OPERATING PARAMETERS AND CRITERIA ...............................................................221
16.2 OPEN PIT MINE DESIGN........................................................................................221
16.3 UNDERGROUND MINE DESIGN ..............................................................................221
16.4 MINE PRODUCTION SCHEDULES............................................................................228
16.5 WASTE MINING STRATEGY – OPEN PITS................................................................234
16.6 OPERATING TIME DEFINITION ................................................................................239
16.7 MINE EQUIPMENT .................................................................................................244
16.8 MINE PERSONNEL ................................................................................................265
16.9 BENCHMARKING ...................................................................................................272
17.0 RECOVERY METHODS ....................................................................................278
17.1 SULPHIDE PROCESS ROUTE .................................................................................279
17.2 PYRITE TREATMENT FACILITIES.............................................................................283
17.3 HEAP LEACH OPERATIONS....................................................................................286
17.4 LAYOUT CONSIDERATIONS AND DESIGN BASIS .......................................................288
17.5 MANPOWER .........................................................................................................288
18.0 PROJECT INFRASTRUCTURE.........................................................................291
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Caspiche Project
Copiapó, Chile
18.1 SUPER PIT MINING OPTION...................................................................................292

18.2 HYBRID MINING OPTION .......................................................................................296
18.3 FULL UNDERGROUND MINING OPTION ...................................................................299
18.4 COMMON SUPPORT INFRASTRUCTURE ..................................................................302
19.0 MARKETING STUDIES AND CONTRACTS......................................................307
19.1 INTRODUCTION & SCOPE ......................................................................................307
19.2 REFINED COPPER MARKET ...................................................................................307
19.3 COPPER - THE LONGER TERM PRICE .....................................................................310
19.4 COPPER CONCENTRATE MARKET OUTLOOK ..........................................................311
19.5 TREATMENT AND REFINING CHARGES (TC/RC’S)...................................................313
19.6 MARKETABILITY OF CASPICHE SULPHIDE CONCENTRATES ......................................314
19.7 LOGISTICS LOAD PORT OPTIONS...........................................................................316
19.8 SULPHURIC ACID MARKET ....................................................................................316
19.9 DORÉ METAL .......................................................................................................317
19.10 COPPER SULPHIDE...............................................................................................317
20.0 ENVIRONMENTAL CONSIDERATIONS ...........................................................318
20.1 PRINCIPAL ENVIRONMENTAL BASELINE FINDINGS ...................................................320
20.2 SUMMARY OF MAIN ENVIRONMENTAL AND SOCIAL ISSUES FOR THE PROJECT ..........323
20.3 SOCIO-ECONOMIC POTENTIAL IMPACTS .................................................................324
20.4 CLOSURE AND ABANDONMENT STAGE ...................................................................325
21.0 CAPITAL AND OPERATING COST ..................................................................326
21.1 CAPITAL COST ESTIMATE .....................................................................................326
21.2 DEFERRED AND SUSTAINABLE CAPITAL COST ........................................................338
21.3 OPERATING COST ESTIMATE ................................................................................340
22.0 ECONOMIC ANALYSIS.....................................................................................352
22.1 PRODUCTION AND REVENUE .................................................................................352
22.2 ECONOMIC ANALYSIS ...........................................................................................353
22.3 CONCLUSIONS FROM THE ECONOMIC ANALYSIS .....................................................358
23.0 ADJACENT PROPERTIES................................................................................360
24.0 OTHER RELEVANT DATA AND INFORMATION .............................................361
24.1 PROJECT EXECUTION ...........................................................................................361
25.0 INTERPRETATION AND CONCLUSIONS ........................................................367
25.1 CONCLUSIONS .....................................................................................................367
25.2 OPPORTUNITIES ...................................................................................................372
26.0 RECOMMENDATIONS ......................................................................................373
26.1 GENERAL PROJECT RECOMMENDATIONS...............................................................373
26.2 MINING ................................................................................................................373
26.3 PROCESS ............................................................................................................373
26.4 FEASIBILITY STUDY ..............................................................................................374
27.0 REFERENCES...................................................................................................376
Project No.: C-580 Page xx

January, 2012
Caspiche Project
Copiapó, Chile
List of Tables Page

Table 1.1: Single Open Pit Option for Mineral Resource for Caspiche
(Rodrigo Marinho, P.GEO, 18 August 2011) ..............................................32
Table 1.2: Proven and Probable Reserves & Contained Metal: Super Pit
(Carlos Guzman, CChM, October 2011) ....................................................34
Table 1.3: Proven and Probable Reserves & Contained Metal: Hybrid
(Carlos Guzman, CChM, October 2011) ....................................................34
Table 1.4: Proven and Probable Reserves & Contained Metal: Full
Underground (Carlos Guzman, CChM, October 2011)...............................34
Table 1.5: Mine Schedule Summary ...........................................................................34
Table 1.6: Super Pit Option: Summarized Characteristics ..........................................35
Table 1.7: Capital Cost Estimate ................................................................................40
Table 1.8: Average operating costs ($/t ore processed) life of mine............................41
Table 1.9: Payable Metal Production ..........................................................................42
Table 1.10: Revenue ....................................................................................................42
Table 1.11: Economic Evaluation .................................................................................43
Table 4.1: Exeter Caspiche Mining Exploitation Concessions - Granted.....................57
Table 4.2: Exeter Caspiche Exploitation Concessions - In Application........................57
Table 4.3: Exeter Exploration Concessions - Granted.................................................59
Table 4.4: Xstrata Concessions Subject to the 100% Option Agreement
with Exeter.................................................................................................60
Table 4.5: Summary of Ground Covered by Exeter Mineral Properties and
Details of Exeter Concessions which Overlap Caspiche and
Third Party Concessions ............................................................................61
Table 4.6: Minimum Expenditures and Drilling Requirements under Exeter’s
ORA with Anglo..........................................................................................62
Table 9.1: Summary of Exeter Exploration Programs on the Caspiche
Property .....................................................................................................86
Table 9.2: Summary of Newcrest Exploration Programs on the Caspiche
Property .....................................................................................................87
Table 9.3: Summary of Anglo Exploration Programs on the Caspiche
Property .....................................................................................................87
Table 10.1: Summary of Drilling on the Caspiche and Adjacent Properties...................89
Table 10.2: Summary of Drilling Campaigns at Caspiche Porphyry ..............................90
Table 10.3: Significant Intercepts for the Caspiche Porphyry Prospect Area.................97
Table 11.1: RC Sample Preparation Procedure for 2007-2008 Exeter Drill
Samples...................................................................................................107
Table 11.2: Refined DD Sample Preparation Procedure for Exeter Drill
Samples...................................................................................................107
Table 11.3: Further Refined DD Sample Preparation Procedure for Exeter
Drill Samples............................................................................................108
Table 12.1: Caspiche Drill Hole Collar Checks ...........................................................125
Table 12.2: Summary of AMEC Check Sampling of Caspiche Core ...........................126
Table 12.3: Summary of Rio Tinto Metallurgical Sampling of Caspiche Core..............126
Table 13.1: LCT Test Results at G&T .........................................................................131
Table 13.2: Sample Assays ........................................................................................134
Table 13.3: Physical Tests..........................................................................................134
Table 13.4: Selected Pilot Plant Flotation Results.......................................................135
Project No.: C-580 Page xxi

January, 2012
Caspiche Project
Copiapó, Chile
Table 13.5: Detailed Product Assays ..........................................................................135

Table 13.6: Settling Test Results ................................................................................136
Table 13.7: Vacuum Filtration Test Results ................................................................137
Table 13.8: Pilot Plant Pyrite Flotation Results ...........................................................137
Table 13.9: Flotation Product Cyanide Leaching Results of Flotation Plant
Products ..................................................................................................138
Table 13.10: SART Cyanide and Copper Recovery Results .........................................138
Table 13.11: Elemental Analysis of Calcine Test Products ...........................................139
Table 13.12: Summary for Partial Roast of Caspiche Flotation Concentrate.................140
Table 13.13: Results of Optimization Programme.........................................................143
Table 13.14: MacNeill & McTrans Gold Leach Recoveries ...........................................146
Table 13.15: Physical Test Results 12403-006.............................................................148
Table 14.1: Summary of Drill Data used for the Caspiche Mineral Resource
Estimate...................................................................................................150
Table 14.2: Lithological Unit Description.....................................................................152
Table 14.3: Estimation Domains and Data Combinations – Gold and Silver ...............157
Table 14.4: Estimation Domains and Data Combinations – Copper............................157
Table 14.5: Caspiche 8 m Composites by Estimation Domain – Summary
Statistics - Au ppm ...................................................................................167
Statistics – Ag ppm ..................................................................................167
Statistics – Cu %......................................................................................168
Table 14.8: High Grade Restriction for Gold and Silver...............................................170
Table 14.9: High Grade Restriction for Copper ...........................................................170
Table 14.10: Estimation Parameters for Gold, Silver and Copper .................................171
Table 14.11: Average Density Values for Caspiche Resource Model ...........................172
Table 14.12: Comparison between Composite, NN and Kriged Statistics, Gold............173
Table 14.13: Optimization Parameters for Open Pit Resource Shell.............................180
Table 14.14: Marginal Cut-off Calculation Parameters and Results ..............................183
Table 14.15: Super Pit Option for Mineral Resource for Caspiche (Rodrigo
Marinho, P.GEO, 18 August 2011)...........................................................183
Table 15.1: Base Parameters using Waste Crushing and Conveying .........................188
Table 15.2: Sulphide Metallurgical Recoveries ...........................................................189
Table 15.3: Slope Design ...........................................................................................190
Table 15.4: Block Value Calculation ...........................................................................191
Table 15.5: Nested Pit Series – Super Pit Option .......................................................193
Table 15.6: Nested Pit Series – Hybrid Option............................................................194
Table 15.7: Ultimate Pit Shells Contained Reserves...................................................196
Table 15.8: Key Parameters for the Heap Leach Open Pit Optimization.....................197
Table 15.9: Ultimate Heap Leach Pit Shell – Underground Option..............................198
Table 15.10: Super Pit Option – Design Versus Ultimate Pit Shell Comparison ............206
Table 15.11: Hybrid Option – Design Versus Ultimate Pit Shell Comparison ................208
Table 15.12: Heap Leach Stand Alone Pit - Design Versus Ultimate Pit Shell
Comparison .............................................................................................209
Table 15.13: Super Pit Option – Contained Ore Tonnes and Grade by Phase..............210
Table 15.14: Hybrid Option – Contained Ore Tonnes and Grade by Phase..................211
Project No.: C-580 Page xxii

January, 2012
Caspiche Project
Copiapó, Chile
Table 15.15: Oxide/MacNeill Pit – Contained Ore Tonnes and Grade by

Phase (Full Underground Option) ............................................................211
Table 15.16 Open Pit Proven and Probable Mineral Reserves (Carlos Guzman,
CChM, October 2011)..............................................................................212
Table 15.17: Economic Parameters for Underground Mineable Reserves....................214
Table 15.18: Hybrid Option – Mineral Reserves (Carlos Guzman, CChM,
October 2011)..........................................................................................214
Table 15.19: Full Underground Option – Mineral Reserves at different
Undercut Levels (Carlos Guzman, MAUSIMM, October 2011).................216
Table 15.20: Underground Proven and Probable Mineral Reserves (Carlos
Guzman, CChM, October 2011)...............................................................217
Table 15.21: Super Pit Case - Mineral Reserves (Carlos Guzman, CChM,
October 2011)..........................................................................................217
Table 15.22: Hybrid Case - Mineral Reserves (Carlos Guzman, CChM,
October 2011)..........................................................................................218
Table 15.23: Full Underground Case Case - Mineral Reserves (Carlos
Guzman, CChM, October 2011)...............................................................219
Table 16.1: Mine Schedule Summary .........................................................................228
Table 16.2: Waste Material Requirements for Construction – Super Pit
Option ......................................................................................................229
Table 16.3: Waste Material Requirements for Construction – Hybrid Option...............229
Table 16.4: IPCC Equipment for Super Pit and Hybrid Pit ..........................................235
Table 16.5: Time Usage Model Example – Mobile Equipment ....................................241
Table 16.6: Time Usage Model Example – IPCC System Equipment .........................242
Table 16.7: Relocation Losses for the IPCC systems .................................................243
Table 16.8: Super Pit Option – Main Mobile Equipment Requirements.......................245
Table 16.9: Hybrid Option – Main Mobile Equipment Requirements – Open
Pit ............................................................................................................246
Table 16.10: Hybrid Option – Main Equipment Requirements – Underground
Mine.........................................................................................................247
Table 16.11: Full Underground Option – Main Equipment Requirements for
the Open Pit.............................................................................................248
Table 16.12: Full Underground Option – Main Equipment Requirements for
the Underground Mine .............................................................................249
Table 16.13: Mining Equipment for the Super Pit and Hybrid Cases.............................250
Table 16.14: Equipment Selection for the Stand Alone Heap Leach .............................250
Table 16.15: Open Pit Mine Production Summaries .....................................................251
Table 16.16: Material Characteristics............................................................................251
Table 16.17: Equipment Life and Mechanical Availability..............................................252
Table 16.18: Drilling Parameters ..................................................................................253
Table 16.19: Drilling Capacity per Year ........................................................................254
Table 16.20: Shovel and Loader Productivity Calculations ...........................................255
Table 16.21: Average Speeds (km/h) for Liebherr T282C and Komatsu 730 E.............256
Table 16.22: Haul Truck Loaded by Rope Shovel.........................................................258
Table 16.23: Super Pit Option – IPCC Equipment Requirements .................................259
Table 16.24: Hybrid Option – EPCC Equipment Requirements ....................................260
Table 16.25: Super Pit Option – IPCC Ancillary Fleet ...................................................262
Table 16.26: Hybrid Option – EPCC Ancillary Fleet ......................................................262
Project No.: C-580 Page xxiii

January, 2012
Caspiche Project
Copiapó, Chile
Table 16.27: Hybrid Option – LHD Productivities ..........................................................263

Table 16.28: Full Underground Option – LHD Productivities .........................................264
Table 16.29: Truck Performance ..................................................................................265
Table 16.30: Super Pit Option – Mine Personnel ..........................................................269
Table 16.31: Hybrid Option – Mine Personnel ..............................................................270
Table 16.32: Hybrid Option – Mine Personnel (Continuation) .......................................271
Table 16.33: Full Underground Option – Mine Personnel .............................................271
Table 17.1: Heap Leach Reserves..............................................................................278
Table 17.2: Manpower Distribution – Process Plant....................................................290
Table 18.1: Waste Stockpile Design Parameters ........................................................295
Table 18.2: Waste Stockpile Storage Capacity ...........................................................295
Table 18.3: Waste Stockpile Storage Capacity ...........................................................298
Table 18.4: Waste Stockpile Design Parameters ........................................................301
Table 18.5: Heap Leach Waste Stockpile Storage Capacity .......................................301
Table 19.1: Outlook for the Copper Price....................................................................311
Table 19.2: Concentrates - Commercial Terms Assumptions .....................................314
Table 19.3: Elemental Analysis of Calcine Test Products ...........................................315
Table 20.1: Required Environmental Studies..............................................................319
Table 21.1: Capital Cost Estimate Summary by Area – Super Pit...............................326
Table 21.2: Capital Cost Estimate Summary by Area – Hybrid ...................................327
Table 21.3: Capital Cost Estimate Summary by Area – Full Underground ..................328
Table 21.4: Growth Factors – Cost Adjustments.........................................................331
Table 21.5: Exchange Rates. Source: Banco Central de Chile ...................................337
Table 21.6: Sustainable Capital Estimates..................................................................339
Table 21.7: Total Unit Operating Costs (US$/t)...........................................................341
Table 21.8: Selected Equipment Hourly Cost Estimate...............................................341
Table 21.9: Total Unit Operating Costs Underground Option (US$/t)..........................342
Table 21.10: Labour for concentrator plant ...................................................................343
Table 21.11: Process Unit Cost Summary ....................................................................347
Table 22.1: Payable Metal Production ........................................................................352
Table 22.2: Revenue ..................................................................................................353
Table 22.3: Economic Evaluation ...............................................................................353
Table 22.4: Sensitivity Analysis For NPV=0 ................................................................357
Table 22.5: Cu Current Market Price ..........................................................................358
Table 22.6: Au Current Market Price...........................................................................358
Table 22.7: Key Reserve and Mining Parameters.......................................................359
Table 25.1: Project Break-even Analysis ....................................................................367
Table 25.2: Super Pit – Proven and Probable Reserves (Carlos Guzman,
CChM, October 2011)..............................................................................368
Table 25.3: Hybrid Case – Proven and Probable Reserves (Carlos Guzman,
CChM, October 2011)..............................................................................369
Table 25.4: Full Underground Case Case – Proven and Probable Reserves
(Carlos Guzman, CChM, October 2011) ..................................................369
Table 25.5: Total Contained Metal..............................................................................370
Table 25.6: Capital Cost Estimate ..............................................................................370
Table 25.7: Average operating costs ($/t ore processed) life of mine..........................371
Table 26.1: Key Areas and Costs ...............................................................................375
Project No.: C-580 Page xxiv

January, 2012
Caspiche Project
Copiapó, Chile
List of Figures Page

Figure 1.1: Caspiche Location Map (Source: Exeter, 2011). ........................................31
Figure 1.2: Process Block Diagram..............................................................................38
Figure 1.3: Super Pit: NPV5 Sensitivity Analysis..........................................................43
Figure 1.4: Hybrid: NPV5 Sensitivity Analysis ..............................................................44
Figure 1.5: Full Underground: NPV5 Sensitivity Analysis .............................................44
Figure 2.1: Caspiche Location Map (Source: Exeter, 2011). ........................................50
Figure 4.1: Caspiche Location Map (Source: Exeter, 2011) .........................................53
Figure 4.2: Property Map Showing All Exploration and Exploitation
Concessions in the Caspiche Area Controlled by Exeter and the
Position of Known Mineralization (Source: Exeter, 2011)...........................55
Figure 4.3: Exeter Property Map Showing All Exeter Exploration and
Exploitation Concessions in the Caspiche Area (Source: Exeter,
2011) .........................................................................................................56
Figure 5.1: Caspiche Location Map (Source: Exeter, 2011) .........................................65
Figure 5.2: Photograph of Caspiche Property Looking East (Source: Exeter,
2011) .........................................................................................................67
Figure 5.3: Photograph of Caspiche Property Looking West (Source: Exeter,
2011) .........................................................................................................67
Figure 7.1: Metallogenic Belts of Northern Chile and Argentina (Source: Vila
and Sillitoe, 1991) ......................................................................................71
Figure 7.2: Regional Geology of the Maricunga Metallogenic Belt (Source:
Vila and Sillitoe, 1991) ...............................................................................72
Figure 7.3: Bedrock Geology of the Caspiche Property (Source: Exeter,
2011) .........................................................................................................73
Figure 7.4: Gold Grade Histogram in Red, Copper Grade Histogram in
Purple (Source: Exeter, 2011)....................................................................74
Figure .8.1: Generalized Porphyry Model (Source: Vila and Sillitoe, 1991) ...................83
Figure 10.1: Drill Hole Location Map for the Caspiche Porphyry Prospect
Area (Source: Exeter, 2011) ......................................................................92
Figure 10.2: Regional Drill Hole Location Map Showing Location of
Exploration Drill Holes (2009-2011) (Source: Exeter, 2011) ......................94
Figure 11.1: SRM Control Chart OM00 (2010-2011)- Gold (Source: Cube
Consulting, 2011).....................................................................................112
Figure 11.2: SRM Control Chart OM00 (2010-2011) - Copper (Source: Cube
Consulting, 2011).....................................................................................112
Figure 11.3: SRM Control Chart OM00 (2010-2011) - Silver (Source: Cube
Consulting, 2011).....................................................................................113
Figure 11.4: SRM Control Chart OM10(2010-2011) - Gold (Source: Cube
Consulting, 2011).....................................................................................113
Consulting, 2011).....................................................................................114
Consulting, 2011).....................................................................................114
Figure 11.7: SRM Control Chart OM100 (2010-2011) - Gold (Source: Cube
Consulting, 2011).....................................................................................115
Consulting, 2011).....................................................................................115
Project No.: C-580 Page xxv

January, 2012
Caspiche Project
Copiapó, Chile
Consulting, 2011).....................................................................................116
Consulting, 2011).....................................................................................116
Figure 11.11: SRM Control Chart OM110 (2010-2011) -Copper (Source: Cube
Consulting, 2011).....................................................................................117
Consulting, 2011).....................................................................................117
Consulting, 2011).....................................................................................118
Consulting, 2011).....................................................................................118
Consulting, 2011).....................................................................................119
Consulting, 2011).....................................................................................119
Consulting, 2011).....................................................................................120
Consulting, 2011).....................................................................................120
Figure 11.19: SRM Control Chart OM300(2010-2011) - Gold (Source: Cube
Consulting, 2011).....................................................................................121
Consulting, 2011).....................................................................................121
Consulting, 2011).....................................................................................122
Figure 12.1: Re-Assays of Samples >1 Au ppm...........................................................128
Figure 13.1: Gold Leach Rate Profile...........................................................................142
Figure 13.2: Oxide Material..........................................................................................144
Figure 13.3: Results Obtained From SGS....................................................................144
Figure 13.4: Cumulative Recovery...............................................................................146
Figure 14.1: Caspiche and Drill Hole Locations – Caspiche Porphyry Project
(Source: Cube Consulting, 2011) .............................................................151
Figure 14.2: Caspiche Lithological Model - Plan (Source: Cube Consulting,
2011) .......................................................................................................153
Figure 14.3: Caspiche Lithological Model – Looking North (Source: Cube
Consulting, 2011).....................................................................................154
Figure 14.4: Caspiche Lithological and Alteration Model – Looking North
Figure 14.5: Caspiche 8 m Composites by Stratigraphy – Log-Prob Plot – g/t
Au (Source: Cube Consulting, 2011)........................................................158
Figure 14.6: Caspiche 8 m Composites by Stratigraphy – Log-Prob Plot – g/t
Ag (Source: Cube Consulting, 2011)........................................................159
Figure 14.7: Caspiche 8 m Composites by Stratigraphy – Log-Prob Plot - Cu
% (Source: Cube Consulting, 2011).........................................................160
Figure 14.8: Caspiche 8 m Composites by Alteration – Log-Prob Plot – g/t Au
Project No.: C-580 Page xxvi

January, 2012
Caspiche Project
Copiapó, Chile
Figure 14.9: Caspiche 8 m Composites by Alteration – Log-Prob Plot – g/t Ag

Figure 14.10: Caspiche 8 m Composites by Alteration – Log-Prob Plot - Cu %
Figure 14.11: Caspiche 8 m Composites by Weathering – Log-Prob Plot – g/t
Au (Source: Cube Consulting, 2011)........................................................164
Figure 14.12: Caspiche 8 m Composites by Weathering – Log-Prob Plot – g/t
Ag (Source: Cube Consulting, 2011)........................................................165
Figure 14.13: Caspiche 8 m Composites by Weathering – Log-Prob Plot - Cu
% (Source: Cube Consulting, 2011).........................................................166
Figure 14.14: Caspiche Variogram Model – DP+QDP1 – Vertical Plunge -
Gold (Source: Cube Consulting, 2011).....................................................168
Figure 14.15: Caspiche Variogram Model – DP+QDP1 – Vertical Plunge -
Copper (Source: Cube Consulting, 2011).................................................169
Figure 14.16: East-West Swath Plot, Sulphide, Gold (Source: AMEC, 2011).................174
Figure 14.17: Vertical Section (looking northwest) with Blocks and Composite
Grades for Gold (Corridor of ±100 m) (Source: Cube Consulting,
2011) .......................................................................................................175
Figure 14.18: Gold Grade-Tonnage Curve, VOLCBX Domain (Source: AMEC,
2011) .......................................................................................................176
Figure 14.19: Cube vs AMEC Grade-Tonnage Curve, DP+QDP1 Domain -
Gold (Source: Cube Consulting, 2011).....................................................178
Figure 14.20: Cube vs AMEC Grade-Tonnage Curve, DP+QDP1 Domain -
Copper (Source: Cube Consulting, 2011).................................................178
Figure 14.21: Bench Plan Showing Classification Before and After Smoothing
(Source: AMEC, 2011).............................................................................181
Figure 14.22: Vertical Section (looking Northwest) of Gold Grades Showing
Open Pit Resource Shell (Source: Cube Consulting, 2011) .....................182
Figure 14.23: AuEq GT Curves - Open Pit Oxide Measured + Indicated
Mineral Resources (Source: AMEC, 2011)...............................................184
Figure 14.24: AuEq GT Curves - Open Pit Sulphide Measured + Indicated
Mineral Resources (Source: AMEC, 2011)...............................................185
Figure 15.1: Two way Haul Road Cross-Section..........................................................189
Figure 15.2: Main Access Corridor Cross-Section........................................................190
Figure 15.3: Stripping Ratio Versus Contained Metal – Super Pit Option.....................195
Figure 15.4: Stripping Ratio Versus Contained Metal – Hybrid Option .........................196
Figure 15.5: Optimal Pit Shells.....................................................................................197
Figure 15.6: Stripping Ratio Versus Contained Metal – Heap Leach Stand
Alone (Full Underground option) ..............................................................198
Figure 15.7: Optimal Heap Leach Pit ...........................................................................199
Figure 15.8: Final Pit Design – Super Pit IPCC Option.................................................201
Figure 15.9: Final Pit Design – Hybrid Option ..............................................................201
Figure 15.10: Final Pit Design – Oxide/McNeill Pit: Full Underground Option ................202
Figure 15.11: Mining Sequence – Super Pit Option – Bench 4210.................................203
Figure 15.12: Mining Sequence – Hybrid Option – Bench 4240.....................................204
Figure 15.13: Mining Sequence – Heap Leach Pit - Bench 4300 ...................................205
Figure 15.14: Super Pit Option – Plots of Ultimate Pit Shell Compared to Mine
Design .....................................................................................................207
Project No.: C-580 Page xxvii

January, 2012
Caspiche Project
Copiapó, Chile
Figure 15.15: Hybrid Option – Plots of Ultimate Pit Shell Compared to Mine
Design .....................................................................................................208
Figure 15.16: Oxide/MacNeill Pit – Plots of Ultimate Pit Shell Compared to
Mine Design.............................................................................................209
Figure 15.17: Dilution & Economic Column Calculation .................................................213
Figure 15.18: Hybrid Option – Undercut Level ...............................................................215
Figure 15.19: Full Underground Option – Undercut Levels ............................................216
Figure 16.1: Hybrid option – Underground Mine Design...............................................222
Figure 16.2: Full Underground Option – Mine Design ..................................................222
Figure 16.3: Typical Layout of the Production Level.....................................................223
Figure 16.4: Typical Layout of the Undercut Level .......................................................224
Figure 16.5: Typical Layout of the Ventilation Level .....................................................225
Figure 16.6: Typical Layout of the Haulage Level ........................................................226
Figure 16.7: Typical Layout of the Conveyor Level ......................................................227
Figure 16.8: Super Pit Option – Mine Schedule ...........................................................230
Figure 16.9: Hybrid Option – Open Pit Mine Schedule.................................................230
Figure 16.10: Hybrid Option – Open Pit and Underground Mine Contribution ................231
Figure 16.11: Full Underground Option – Mine Schedule...............................................231
Figure 16.12: Super Pit Option – Total Material by Mining Phase ..................................232
Figure 16.13: Hybrid Option – Total Material by Mining Phase – Open Pit.....................232
Figure 16.14: Super Pit Option – Benches per Year ......................................................233
Figure 16.15: Hybrid Option – Benches per Year – Open Pit .........................................233
Figure 16.16: Full Underground Option – Total Material by Mining Phase –
Heap Leach Open Pit...............................................................................234
Figure 16.17: Full Underground Option – Benches per Year – Heap Leach
Open Pit...................................................................................................234
Figure 16.18: Super Pit Option – General Layout – end of Year -1 ................................236
Figure 16.19: Super Pit Option – General Layout – end of Year 17 ...............................237
Figure 16.20: Hybrid Option – General Layout – end of Year -1.....................................238
Figure 16.21: Hybrid Option – General Layout – end of Year 9......................................238
Figure 16.22: Operating time Definition..........................................................................239
Figure 16.23: Super Pit Option – Estimated Distances ..................................................256
Figure 16.24: Hybrid Option – Estimated Distances.......................................................256
Figure 16.25: Super Pit Option – Travel Cycle Times for Each Origin-
Destination...............................................................................................257
Figure 16.26: Hybrid Option – Travel Cycle Times for Each Origin-Destination .............257
Figure 16.27: Heap Leach Stand Alone – Travel Cycle Times ......................................258
Figure 16.28: Super Pit Option – Mine Organization ......................................................267
Figure 16.29: Hybrid Option – Mine Organization ..........................................................268
Figure 16.30: Full Underground Option – Mine Organization .........................................269
Figure 16.31: Mine Cost Benchmark..............................................................................272
Figure 16.32: Mine Cost Benchmark (Unit Operations)..................................................273
Figure 16.33: Trucks and Shovel Fleet Benchmark........................................................273
Figure 16.34: Mine Movement and Hauling Distance Fleet Benchmark .........................274
Figure 16.35: Loading Capacity Benchmark ..................................................................275
Figure 16.36: Hauling Capacity Benchmark ...................................................................276
Figure 16.37: Hauling Capacity Benchmark ...................................................................276
Figure 17.1: General Process Flow Diagram ...............................................................280
Project No.: C-580 Page xxviii

January, 2012
Caspiche Project
Copiapó, Chile
Figure 17.2: Scorodite Precipitation Process Flow Diagram.........................................283

Figure 17.3: Pyrite Treatment Circuit Process Schematic ............................................284
Figure 17.4: SART Process Flow Diagram...................................................................285
Figure 18.1: Map Plant Area (Source: Aker Solutions, 2011) .......................................291
Figure 18.2: Super Pit Plot Plan (Source: NCL, 2011) .................................................292
Figure 18.3: Super Pit Option – North Waste Stockpile (Source: NCL, 2011) ..............294
Figure 18.4: Super Pit Option – West Waste Stockpile (Source: NCL, 2011) ...............295
Figure 18.5: Hybrid Option Plot Plan (Source: NCL, 2011) ..........................................297
Figure 18.6: Hybrid Option - Waste Stockpile (Source: NCL, 2011) .............................298
Figure 18.7: Underground Option Plot Plan (Source: NCL, 2011) ................................300
Figure 18.8: Full Underground Option – Heap Leach Waste Stockpile
(Source: NCL, 2011) ................................................................................301
Figure 19.1: The Shortfall in Refined Copper Could Reach 6 Million Tonnes
by 2020....................................................................................................309
Figure 19.2: China is now the Dominant Metal Market Participant ...............................310
Figure 21.1: Super Pit Operating Cost Summary .........................................................345
Figure 21.2: Hybrid Operating Cost Summary .............................................................345
Figure 21.3: Full Underground Operating Cost Summary ............................................346
Figure 21.4: Super Pit Operating Cost per Tonne of Ore .............................................348
Figure 21.5: Hybrid Operating Cost per Tonne of Ore..................................................348
Figure 21.6: Full Underground Operating Cost per Tonne of Ore.................................349
Figure 21.7: Super Pit: Cost per ounce of gold equivalent ...........................................350
Figure 21.8: Hybrid: Cost per ounce of gold equivalent................................................350
Figure 21.9: Full Underground: Cost per ounce of gold equivalent...............................351
Figure 22.1: Cash Flow – Super Pit .............................................................................354
Figure 22.2: Cash Flow – Hybrid..................................................................................354
Figure 22.3: Cash Flow – Full Underground.................................................................355
Figure 22.4: Super Pit: NPV5 Sensitivity Analysis........................................................356
Figure 22.5: Hybrid: NPV5 Sensitivity Analysis ............................................................356
Figure 22.6: Full Underground: NPV5 Sensitivity Analysis ...........................................357
Figure 24.1: Super Pit Project Master Schedule...........................................................361
Figure 24.2: Hybrid Project Master Schedule...............................................................362
Figure 24.3: Full Underground Project Master Schedule..............................................363
Project No.: C-580 Page xxix

January, 2012
Caspiche Project
Copiapó, Chile
1.0 SUMMARY
The Caspiche project is located in the 3 rd Region of Chile. The property is located 120 km
ESE of Copiapó in northern Chile and is situated at the southern end of the Maricunga
metallogenic belt, between the undeveloped Cerro Casale gold-copper project 12 km to the
south, and the Maricunga Gold Mine (formerly Refugio), 15 km to the north as shown in
Figure 1.1. Exeter signed a contract with Aker Solutions and other consultants, with Aker
Solutions the project author, to conduct a Pre-feasibility Study on the viability of mining the
deposit and processing ore to produce a gold and copper concentrate and precious metal
doré.
The Caspiche Gold / Copper Prefeasibility project study was completed by Aker Solutions
considering a type 1 magnitude study level, equivalent to the AACE level 4 study
recommendations. This level of study is classified to have a level of accuracy of -15/+20 %.
The study developed three options for the Caspiche deposit including both the oxide and
sulphide portions of the property.
Super Pit Option:
The total endowment of the deposits mineral reserves is 19.3 million ounces of gold, 2.1
million tonnes of copper and 41.5 million ounces of silver.
Production rate: 150,000 t/d.
Hybrid Option (Open Pit and Underground):

The total endowment of the deposits mineral reserves is 16 million ounces of gold, 1.7
Full Underground Option:

The total endowment of the deposits mineral reserves is 11.6 million ounces of gold, 1.2
Each of the above options additionally considers heap leaching of oxide and heap leachable
MacNeill material.
As a result of the economic evaluation completed on each of the evaluated options, the
Super Pit option generates the most favourable project economics. As such it is the option
recommended to be developed to feasibility level.
1.1 Property, Access and Permits
The Caspiche property is 100 % owned by Exeter. Anglo American Norte S.A. (Anglo),
formerly Minera Anglo American Chile Limitada and its affiliate Empresa Minera Mantos
Blancos S.A. retains a 3 % Net Smelter Royalty on production from the project under the
terms of the option agreement and retains the right to repurchase the mineral properties for
the amount that Exeter has incurred on the property in the event that commercial production
has not commenced by March 31, 2026.
Project No.: C-580 Page 30 - 378

January, 2012
Caspiche Project
Copiapó, Chile
The property consists of nine granted exploitation concessions that encompass an area of
approximately 1,262 ha and four exploitation concessions in application which cover an
additional 980 ha.
Figure 1.1: Caspiche Location Map (Source: Exeter, 2011).
Drilling has been permitted through the approved DIA’s (Environmental Impact Declaration)
submitted by Exeter. No additional permits are required for exploration activities at
Caspiche. Additional permits will be required for the exploitation of the Caspiche ore body.

January, 2012
Caspiche Project
Copiapó, Chile
1.2 Geology and Mineral Resources

The Caspiche property is located in the Maricunga metallogenic belt, a north-northeast
trending, and linear zone containing at least 14 occurrences of gold and/or silver
mineralization between latitudes 26° and 28° S in the Andean Cordillera of northern Chile.
The Maricunga belt is composed of a series of volcanoes of andesitic to dacitic composition.
North-south to north-northeast trending high-angle reverse faults form a series of horsts and
graben blocks, these graben structures host significant mineralization. West-northwest to
north-northwest trending structures occur as normal trans-tensional faults, dykes, veins and
linear alteration zones, and are associated with alteration and mineralization in late
Oligocene to early Miocene age volcanic centres.
Stockwork-hosted, gold-copper porphyry, high-sulphidation epithermal gold mineralization
and intermediate-sulphidation gold mineralization styles have been recognized within the
Caspiche property. Mineralization at Caspiche Porphyry is interpreted to be a high-
sulphidation epithermal gold deposit above a gold-rich, gold-copper porphyry deposit. The
MacNeill zone, confined beneath the underside of the eastward-flared, late-mineral diatreme
contact, is assigned an intermediate-sulphidation epithermal origin. It appears to be the
product of the final mineralizing event in the Caspiche system, post-dating all alteration and
partially overlapping Caspiche mineralization.
The Caspiche mineral resource estimate is reported in Table 1.1.
Table 1.1: Single Open Pit Option for Mineral Resource for Caspiche (Rodrigo
Marinho, P.GEO, 18 August 2011)i1
Cut-off Volume Tonnes Au Cu Ag AuEq AuEq
Material Category (ppm) (Mm 3) (Mt) (g/t) (%) (g/t) (g/t) (Moz)
OXIDE Measured Au Eq > 0.18 23 56 0.45 0.01 1.72 0.45 0.81
OXIDE Indicated Au Eq > 0.18 21 50 0.37 0.01 1.57 0.37 0.60
OXIDE Inferred Au Eq > 0.18 4 9 0.27 0.01 1.54 0.27 0.1
SULPHIDE Measured Au Eq > 0.3 163 402 0.56 0.22 1.08 0.98 12.67
SULPHIDE Indicated Au Eq > 0.3 346 853 0.49 0.19 1.10 0.84 22.93
SULPHIDE Inferred Au Eq > 0.3 114 277 0.31 0.13 0.88 0.54 4.9
ALL Measured Combined 186 457 0.55 0.20 1.15 0.92 13.48
ALL Indicated Combined 367 903 0.48 0.18 1.12 0.81 23.53
ALL Inferred Combined 117 286 0.31 0.12 0.89 0.54 4.9
Note: Silver included in the AuEq values
1.3 Mining and Mineral Reserves

The mining section of the project was developed in parallel with the other aspects of the
study and three exploitation options were assessed for the sulphide resources:
An open pit option, designated ‘Super Pit case’ extracting an average of 150,000 t/d
sulphide ore over a project life of 19 years. As a result of stripping and ongoing operations
there would be an additional heap leach operation treating both oxide and leachable
MacNeill material, which will operate for the first 9 years operation, processing a maximum
of 72,000 t/d.
1
Resources are inclusive of reserves

January, 2012
Caspiche Project
Copiapó, Chile
A combined open pit and underground option, designated ‘Hybrid’, extracting an average of
95,000 t/d sulphide ore over a project life of 24 years. As a result of stripping and ongoing
operations there would be an additional heap leach operation treating both oxide and
leachable MacNeill material, which will operate for the first 9 years operation, processing a
maximum of 72,000 t/d.
An underground option, designated ‘Full Underground’, extracting an average of 90,000 t/d
sulphide ore for 22 years from year 9 of the project. A stand alone heap leach operation
would also operate for approximately the first 9 years operation, processing a maximum of
72,000 t/d heap leach ore.
Oxide and leachable MacNeill production was largely the same for each of the sulphide
options considered in the study.
To determine the in-pit mineral resources of the Caspiche project, the mineral resources
were valued by assuming that the oxide and leachable MacNeill resource would be
processed via a heap leach operation to produce gold and silver doré metal and that the
sulphide resource would be processed in a flotation/concentrator plant.
The mining proven and probable reserves used in the calculation of the mine production
plan and therefore the overall project economics contain only Measured and Indicated
Resources.
The Super Pit and Hybrid open pit operations consider 15 m benches, a mobile equipment
fleet of electric rope shovels, diesel powered trucks, drills and auxiliary equipment. Gyratory
crushers, conveyors and mobile spreaders would be used to crush, convey and place the
waste.
Resources are inclusive of reserves.
Total proven and probable reserves and contained metal for all three options are
summarized in Table 1.2 to Table 1.4

January, 2012
Caspiche Project
Copiapó, Chile
Table 1.2: Proven and Probable Reserves & Contained Metal: Super Pit (Carlos
Guzman, CChM, October 2011)ii
Super Pit
Contained Metal
Oxide Ore MacNeill Ore Sulphide Ore (millions)
Option Mt Au g/t Ag g/t Mt Au g/t Cu % Ag g/t Mt Au g/t Cu % Ag g/t Au oz Cu t Ag oz
Proven 62 0,42 1,71 4 0,46 0,08 0,70 321 0,62 0,26 1,10 7,3 0,8 14,8
Probable 62 0,33 1,52 74 0,51 0,07 1,08 568 0,55 0,23 1,15 11,9 1,3 26,6
Total 124 0,38 1,62 78 0,51 0,07 1,05 889 0,58 0,24 1,13 19,3 2,1 41,5
Table 1.3: Proven and Probable Reserves & Contained Metal: Hybrid (Carlos
Guzman, CChM, October 2011)iii
Hybrid (Open Pit + Underground)

Contained Metal
Proven 62 0,42 1,71 4 0,46 0,08 0,70 273 0,65 0,27 1,13 6,6 0,7 13,4
Probable 62 0,33 1,52 65 0,51 0,07 1,07 387 0,62 0,25 1,21 9,4 1,0 20,4
Total 124 0,38 1,62 70 0,50 0,07 1,05 660 0,63 0,26 1,18 16,0 1,7 33,8
Table 1.4: Proven and Probable Reserves & Contained Metal: Full Underground
(Carlos Guzman, CChM, October 2011)iv
Full Underground
Contained Metal
Proven 57 0,43 1,69 7 0,47 0,11 0,82 158 0,72 0,31 1,22 4,5 0,5 9,5
Probable 55 0,34 1,44 67 0,56 0,11 1,16 243 0,67 0,29 1,30 7,0 0,7 15,1
Total 112 0,39 1,57 74 0,55 0,11 1,12 400 0,69 0,30 1,27 11,6 1,2 24,6
The mine schedules for all three options are summarized in Table 1.5.
Table 1.5: Mine Schedule Summary

Mine Schedule
Oxide MacNeill Open Pit Stockpile Max.
Option LOM UG Feed Avg.Tonnage
Process Process Feed Feed Tonnage
Mvment
Mvment
kt/d
Years kt/d kt/d kt/d kt/d kt/d kt/d
Super Pit 19 72 33 150 909 655
Hybrid 21 72 33 95 80 15 500 380
Full UG 22 72 33 90 99 79

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Caspiche Project
Copiapó, Chile
As a result of the economic evaluation completed on each of the evaluated options (see item
22.2) the Super Pit option generates the most favourable project economics. As such it is
the option recommended to be developed to feasibility level and relevant mining parameters
pertaining to this option are illustrated in Table 1.6.
Table 1.6: Super Pit Option: Summarized Characteristics

Au Ag Cu
Reserves Mt
g/t g/t %
Oxide Ore 124 0.38 1.62 <0.01 %
MacNeill Ore 78 0.51 1.05 0.07 %
Sulphide Ore 889 0.58 1.13 0.24
2
Cu Au Ag Eq Au
Contained Metal Mt Moz Moz Moz
2.1 19.3 41.5 30.1
Heap leach Y6 -
LOM Heap leach Y 1 – 5 Open Pit Feed
10
yr kt/d kt/d
kt/d
19 72 33 150
Mine Schedule
Max. Open Pit Avg. Open Pit
Mvment. Mvment.
kt/d kt/d
909 655
1.4 Metallurgical Testwork and Process Design

The results from the laboratory test programme completed on the Caspiche samples can be
summarized as follows:
1.4.1 Sulphides
The key chemical and mineralogical characteristics of the sample used in the pilot plant test
programme are as follows:
Copper: 0.25%
Gold: 0.53 g/t
Silver: 1.20 g/t
Arsenic: 0.03%
Sulphur: 2.05%.
The main copper mineral is predominantly chalcopyrite.
Arsenic is mainly present within enargite, with minor tennantite-tetrahedrite content.
Pyrite is the most abundant sulphide mineral.
2
Eq Au [Moz] = Au [Moz] + Cu [Mt] * Copper Price * 2204.62 / Gold Price + Ag [Moz] * Silver Price / Gold Price

January, 2012
Caspiche Project
Copiapó, Chile
G&T Metallurgical Services Ltd (G&T) based in Kamloops, Canada completed modal
analyses that provided liberation characteristics supporting the actual flotation results. Both
G&T and SGS Lakefield test work shows the copper minerals to be reasonably well liberated
at the primary grind size and very well liberated in the concentrate.
On the basis of the SGS’s testwork and pilot plant operation the following considerations
were reviewed for process design criteria and flow sheet development:
A primary grinding P80 of 130 µm
Rougher flotation at pH 10.5 and with a reagent suite as used by SGS (PAX, PEX,
AP208, MIBC)
Concentrate regrind P80 of 30 µm
Three stages of cleaning at pH 11 to 11.5
Rougher flotation tailings would form the plant final tailings
First cleaner tailings to feed a scavenger circuit, specifically to recover gold into a pyrite
rich concentrate
Downstream treatment of this pyrite concentrate to be cyanide leached.
The best copper recovery from the pilot plant testwork was 78.6 %, with 51.7 % gold
recovery and 21.8 % copper grade in the concentrate, achieved with 43.4 g/t total collector.
The best copper grade in the concentrate was 25.9 % with a 64.6 % copper recovery and 38
% gold recovery, achieved with 44.6 g/t total collector.
There are two relevant conclusions from the test information:
1. It is possible to obtain a copper recovery over 80 % and a gold recovery close to 60 %,
based fundamentally on the LCT tests results.
2. It is possible to obtain a commercial grade, possibly close to 25 % copper in the final
concentrate.
Flotation recoveries used in this study are calculated using a formula based on the final
tailings grade derived from this testwork.
1.4.2 Oxides
A detailed heap leach cyanidation testing program was undertaken on a total of eleven drill
core composites. Ten of the eleven composites were identified as being oxide mineralized
type composites and one as being a transitional type composite.
Column leach tests were conducted on eight of the 11 composites at a nominal -50 mm feed
size, and at 80 % -25 mm and -12.5 mm feed sizes, to determine gold recovery, recovery
rate, reagent requirements and feed size sensitivity under simulated heap leaching
conditions. A comparative bottle roll test was conducted on each composite at an 80 % -1.7
mm feed size. Conminution testing was also conducted on the selected composites.
Selected column leach residues were also subjected to geotechnical load/permeability
testing.

January, 2012
Caspiche Project
Copiapó, Chile
A total of seven of the ten oxide type composites were evaluated at -50 mm, -25 mm and -
12.5 mm feed sizes obtaining gold recoveries of 79.3 %, 80.4 % and 81.7 %, respectively.
The ROM particle size distribution was determined by SGS in Santiago from a composite
bulk sample. The oxide ROM distribution results indicate a very fine material compared with
other projects or operations (F80=71 mm) and Aker recommends that this test is repeated to
confirm representability during further project development.
1.5 Process
1.5.1 Sulphide Ore
The concentrator plant design used both the metallurgical test results obtained for expected
recoveries and also physical characterization testwork which defined ore hardness and
abrasivity amongst other characteristics.
The sulphide material is treated through a conventional SAG concentrator plant at
throughputs ranging from 90,000 t/d to 150,000 t/d. Due to mineral characteristics the
Caspiche process route incorporates a number of considerations to maximize production or
ensure a saleable product, these include:
Treatment of the copper concentrates by partial atmosphere roasting to eliminate arsenic
Leaching of the cleaner flotation tails to recover additional gold
Use of a SART plant to recover copper contained in the gold rich leachate and recycle
cyanide.
The preferred option, the Super Pit, processes 150,000 t/d sulphide ore.
Figure 1.2 illustrates the concentrator process block diagram.

January, 2012
Caspiche Project
Copiapó, Chile
Figure 1.2: Process Block Diagram
ROM Ore Primary Crushing Stockpile
Grinding Flotation Roasting Calcine
Scavenger
Treatment
Scorodite
ADR FeAsO4*2H2O
Precipitation
SART
Doré
1.5.2 Oxide Ore

Mine trucks discharge run of mine (ROM) material into a conventional two stage crushing
operation consisting of static and vibrating grizzlies, classification screens and primary jaw
and secondary cone crushers, at an annual production rate of 26 MT/yr. The crusher circuit
reduces the ROM ore to a final product d100 size of 50 mm. Solid lime to control pH is added
to the crushed ore as it is conveyed to a truck load out bin. The final crushed material is then
transported to a valley heap leach by trucks and distributed by bulldozers and graders. Ten
metre high lifts and forty metre high benches are considered.
The ore placed on the heap leach pad would be irrigated over each 10 metre lift using
drippers at an irrigation rate of 10 L/h/m2. The nominal cycle is 80 days. Actual leach time is
greater because up to four 40 m benches are considered and the cyanide solution would
percolate through the whole pad prior to being collected and would continue to leach gold
during this period. Gold rich, pregnant leach solution (PLS), discharges into a PLS pond is
then pumped to the adsorption, desorption, recovery (ADR) plant where gold is recovered
via carbon adsorption. In the case of a power outage or other emergency, the PLS overflows
to the barren solution pond and, finally, to a containment pond sized to contain eighteen
hours of PLS production. The solution irrigation handling circuit is connected to the
emergency energy supply system to allow solution recirculation onto the pad during any
power outage or downstream interruption in operations.
The ADR plant considers a counter current carbon in column (CIC) circuit of five columns.
Columns are constructed in series, allowing solution to flow using a cascade gravity system.
The carbon is transferred periodically counter-current to the solution by means of a carbon

January, 2012
Caspiche Project
Copiapó, Chile
transfer pump. Loaded carbon is then transferred to the elution circuit and barren solution is
returned to the barren solution pond for pad irrigation.
The loaded carbon is acid washed and desorbed. Both unit operations will be performed in
the same stainless steel column. The acid wash solution is neutralized and pumped to the
barren solution tank. Gold is then dissolved from the loaded carbon using a strong caustic
cyanide solution.
The gold bearing electrolyte is recirculated through an electrowinning circuit where the gold
is either deposited on the electrowinning cell cathode or settles in the electrowinning cell as
sludge. The gold is washed from the cathodes periodically and it and the gold bearing
sludge in the bottom of the electrowinning cell is filtered and then smelted, producing bullion
doré bars.
The stripped carbon is reactivated in a rotary kiln every four cycles and returned to the
adsorption columns with additional fresh carbon make up as required.
1.5.3 MacNeill Ore
The MacNeill ore is processed through the same heap leach and ADR circuit as the oxide
but has the following changes to the circuit to that of the oxide process route.
The MacNeill ore is crushed through the same crushing circuit but at a throughput of 12 Mt
per annum due to greater rock competency. Primary and secondary crushers would be
upgraded to process the MacNeill ore.
Irrigation rates are as per the oxide circuit but leach cycle time is 30 days only. After this
time no further gold is recovered but copper would be leached which would result in
excessive cyanide consumption. The lifts are considered as 7.5 m and between each lift an
interlift liner and associated drainage piping would be installed. Benches would be 30 m
high.
The pregnant solution would be pumped to the ADR plant as per the oxide process but with
the addition of a SART plant in the pregnant solution line prior to the ADR circuit and close
to the heap leach barren solution pond. The SART plant would recover any copper in
solution and recycle cyanide which would be reused in the heap leach operation.
1.6 Project Operating and Capital Costs
1.6.1 Capex Estimate
The capital cost estimate for all options was as per Aker Solutions Type 1 Magnitude
estimate with an accuracy of -15 / + 20 % with a 90 % probability of occurrence. This Type 1
estimate is equivalent to the Association for the Advancement of Cost Engineering (AACE)
Class 4 estimate. The capital cost estimate for all three (3) options summarized by area is
presented in Table 1.7:

January, 2012
Caspiche Project
Copiapó, Chile
Table 1.7: Capital Cost Estimate

Full
CAPEX / OPTION Super Pit Hybrid
Underground
Mine 945,227,824 784,709,025 983,319,716
Process plant 1,426,134,955 1,177,895,449 1,131,218,267
Infrastructure (including Power and Water supply
419,852,678 432,702,291 436,867,733
& access)
Indirects (incl. G&A and Owners Cost) 870,184,179 745,112,334 770,248,136
Other 310,991,493 167,207,809 299,489,409
Contingency 827,366,227 683,633,302 721,515,343
Total 4,799,757,356 3,991,260,210 4,342,658,604
1.6.2 OPEX Estimate

1.6.2.1 Basis of Estimate
The major Opex considerations for the 3 options evaluated were defined within the battery
limits of the project.
These battery limits are:

Upstream: mine operation.
Downstream: production of copper cathodes and bullion doré. Aker design is limited to
the production of calcine copper concentrate and doré, however the operating cost
estimate includes all off-site costs associated with production of final product.
1.6.2.2 Process Costs Estimate
Direct labour and supervision labour will work 12-hour shifts, 2 shifts per day, on a 4-days-
on/4-days-off shift rotation with the exception of management and maintenance labour, who
will work day-shift only. All direct labour and supervisors will rotate between day and night
shifts.
The process plant labour estimate considers a modern structure for maintenance personnel,
where heavy maintenance will be completed by specialist companies and minor maintenance
will be completed by owner personnel.
Maintenance costs for equipment have been estimated as 7 % of the direct cost of
equipment, except for the pumping cost where 60 % of the energy cost for slurry pumps and
40 % for water/solution pumps was used.
The energy consumption estimation was made on the basis of equipment useage.
Considered electrical energy cost is 117 USD$/MW, this value considers energy supplied
from the Cardones substation.
Project overhead has been estimated as 7 % of the total value. This value considers
administrative costs of the process plant, laboratories and warehouse. It also includes
contracts for services such as office and industrial cleaning and others that may be required.

January, 2012
Caspiche Project
Copiapó, Chile
The operating cost estimate includes “operational contingency” which has been estimated as
5 % of the total cost.
1.6.2.3 Operating Cost Summary
Average operating costs for each option are summarized in Table 1.8:
Table 1.8: Average operating costs ($/t ore processed) life of mine
COST
AREA UNIT
Super Pit Hybrid Full U'G
TOTAL SULPHIDES COST US$/t ore 10.4 9.9 10.2
Mine US$/t ore 4.9 4.2 5.8

Concentrator Process Cost US$/t ore 4.4 4.6 3.7
CONCENTRATOR US$/t ore 3.5 3.6 2.9
CRUSHING US$/t ore 0.1 0.2 0.3
GRINDING US$/t ore 2.4 2.2 1.8
FLOTATION US$/t ore 0.5 0.3 0.3
CONCENTRATE HANDLING US$/t ore 0.0 0.1 0.1
TAILINGS HANDLING US$/t ore 0.2 0.4 0.4
SCAVENGER TAILS TREATMENT US$/t ore 0.2 0.5 0.2
ROASTING PLANT US$/t ore 0.2 0.3 0.3
AS TREATMENT AND DISPOSAL US$/t ore 0.4 0.6 0.3
WATER SUPPLY US$/t ore 0.3 0.1 0.2
Sulphides G&A US$/t ore 0.6 0.6 0.6
Contingencies US$/t ore 0.5 0.5 0.5
TOTAL HEAP LEACH COST US$/t ore 0.68 0.80 1.11

Process Cost US$/t ore 0.58 0.69 0.96
Heap Leach G&A US$/t ore 0.06 0.07 0.10
Based on the metal prices used in the economic evaluation, see 1.6.3 below, the average
operations cost per ounce gold equivalent is US$ 606 over life of mine. When the revenue
for the copper and silver by-product credits is considered the cost per ounce gold produced
is US$ 18.
1.6.3 Production and Revenue
Total payable metal production for each alternative is summarized in Table 1.9:

January, 2012
Caspiche Project
Copiapó, Chile
Table 1.9: Payable Metal Production
METALS PAYABLE PRODUCTION
Item Unit Super Pit Hybrid Full Underground

Copper Production Mlb 4,003 3,267 2,331
Gold Production Koz 12,983 10,795 7,727
Silver Production Koz 14,736 11,968 8,360
The revenue associated with the payable metals production is presented in Table 1.10. The
revenue was calculated with following metal prices:
Au 1,430 US$/oz Years 1 – 43
1,200 US$/oz remaining LoM
Cu 2.75 US$/lb LoM
Ag 31.2 US$/oz Years 1 - 4
22.5 US$/oz remaining LoM
The gold and silver prices used were calculated from 12 month LME average Sept. 2010 –
Aug. 2011. Copper price used was as per that recommended by Selmar an independent
metals market analytical company contracted by Exeter to complete product market studies.
Table 1.10: Revenue
REVENUE (MUS$)
Item Super Pit Hybrid Full Underground

Copper Revenue 11,009 8,985 6,411
Gold Revenue 16,051 13,332 9,520
Silver Revenue 358 292 203
Total Revenue 27,419 22,609 16,134
1.6.4 Economic Analysis

The economic evaluation was developed for all alternatives considering Net Present Value
discounted at 5 % (NPV5), Internal Rate of Return (IRR) and Payback Period. A summary of
these indicators for all alternatives is presented in Table 1.11. The economic analysis
excludes taxes but includes Anglo American royalty of 3 %. Sensitivities based on
commodity price, metals recovery, operating cost and capital expenditure variation are
highlighted in Figure 1.3 to Figure 1.5 and discussed in this section.
3
Yrs 1- 4 Au prices are from heap leach. As such in the case of the Super Pit and Hybrid option these metal
prices are used for the first 4 years of heap leach production and the first 2 years of concentrator production. In
the case of the Full Underground option these metals prices are used for heap leach production only.

January, 2012
Caspiche Project
Copiapó, Chile
Table 1.11: Economic Evaluation
ECONOMIC EVALUATION – INDICATORS
Indicator Unit Super Pit Hybrid Full Underground

NPV@5 MUS$ 2,800 2,142 375
IRR % 11.5 10.4 7.3
( )
PAYBACK * Years 9.9 11.2 16.2
( )
* from initial investment
The economic analysis indicated that the Super Pit option is that which provides the best
return under the considerations used in this type 1 study. However all option indicators have
been included in the report to allow comparison of each in a logical manner. Sensitivity
analyses for NPV5 considering metals recoveries and prices, variations in the CAPEX and
OPEX was completed. This sensitivity analysis is summarized in the Figure 1.3 to Figure
1.5.
Figure 1.3: Super Pit: NPV5 Sensitivity Analysis
4000
3500
3000
2500
NPV (MUS$)
2000
1500
1000
500
0
-15% -10% -5% 0% 5% 10% 15%
Delta
Opex Capex Silver Recovery/Price Copper Recovery/Price Gold Recovery/Price

January, 2012
Caspiche Project
Copiapó, Chile
Figure 1.4: Hybrid: NPV5 Sensitivity Analysis
3,500
3,000
2,500
NPV (MUS$)
2,000
1,500
1,000
500
0
-15% -10% -5% 0% 5% 10% 15%
Delta
Opex Capex Silver Re covery/Price Copper Re covery/Price Gold Recovery/Price
Figure 1.5: Full Underground: NPV5 Sensitivity Analysis
900
800
700
600
NPV (MUS$)
500
400
300
200
100
0
-15% -10% -5% 0% 5% 10% 15%
-100
Delta
The NPV%, IRR and payback period indicate the following:

January, 2012
Caspiche Project
Copiapó, Chile
The Super Pit option provides the most favourable economic return followed by the
Hybrid and then the Full Underground.
Payback period is shortest for the Super Pit case due to economies of scale due to higher
tonnage rate and the lower cost for the heap leach process.
The Super Pit option also maximises resource exploitation of the Caspiche ore body.
The Full underground case is prejudiced against due to long development time. This is
somewhat mitigated by early cash flow from the stand alone heap leach operation during
underground mine development.
The sensitivity analyses indicate:
Super Pit sensitivity analysis indicates that it is most sensitive to gold recovery ahead of
operating costs and then copper recovery.
Metals fluctuation impact is expected. Opex sensitivity is largely due to the high
volume of waste material to be moved which increases sensitivity impacts.
Hybrid Option sensitivity analysis indicates that it is most sensitive to gold price followed
by Opex and then Capex.
Capex impact is due to the long lead time to develop the underground mine
operation and the smaller benefits associated with the EPCC system.
Full Underground sensitivity analysis indicates the greatest impact in gold price followed
by Capex and Opex. Capex impact is greater due to long underground development time.
The sensitivity analysis shows maximum variation of NPV5 for Super Pit is MUS$ 1,841
and for Hybrid is MUS$ 1,382. The difference for Super Pit is higher because it has a
shorter mine life than the Hybrid and at the same time processes more ore.
1.7 Project Opportunities and Risks
The project has a number of opportunities and risks; selected relevant items are as follows:
1.7.1 Risks
The 3rd Region has significant mining development, this will put a strain on natural and
human resources availability in the area
Project development critical path runs through the permitting process, baseline studies
and water supply evaluation need to be comprehensive to ensure permitting approval
schedule is kept to minimum
Increased corporate taxation will affect the project return and NPV
Long term waste dump acid rock generation modelling is not yet fully understood and
may impact closure plans for the project
Calcination of concentrate as part of arsenic removal may require community awareness
management.

January, 2012
Caspiche Project
Copiapó, Chile
1.7.2 Opportunities
The project has considerable exploration potential both within the existing Caspiche
concessions and those others adjoining Caspiche and owned by Exeter. There is
resource potential in Caspiche Epithermals
The project is close to existing infrastructure and will benefit from further new and
emerging infrastructure such as power generation, port facilities and power transmission
and distribution
Recent metallurgical and material characterization testwork has indicated potential to
economically process lower grade material and use optimised process routes such as
HPGR which may extend resource and reduce Capex and Opex.
As a number of other projects are being developed in the area there exists the potential
to share infrastructure costs between operators.
Chile is an attractive investment jurisdiction.
1.8 Conclusions
No fatal flaws were identified during the course of the Caspiche Project study. The
recommendations are largely based on normal metallurgical and other development
testwork which would be part of project development
The financial analysis indicated that all alternatives for the project had a net positive
cash flow and an acceptable internal rate of return and could support the progression to
mine development
At the metals prices used at as per the economic evaluation completed in item 22.2, the
Super Pit option is the most attractive alternative, the use of in pit crushing and
conveying systems for the waste provide further upside benefits to the Super Pit option
in comparison to the other options studied.
Opex and Capex used for the project represents those expected for a project of this type
exhibiting average characteristics of ore abrasiveness and hardness; grades and rock
type characterizations as indicated in the geological section. Operating costs were
generated from first principles and bench marked against other operations and capital
costs were based on receipt of approximately 40 % of equipment costs, database
information and were also benchmarked against similar operations
The mine plan is appropriate to the mineralization and adequately reflects the deposit
type, dimensions and host rock characterization
To advance the project to construction Exeter will require an approved environmental
impact study, additional baseline studies required to support the impact study should be
initiated as soon as possible
Additional geotechnical and hydrological studies are required particularly to model
surface water flows into the Vegas or seasonal creeks
Mining relevant conclusions are listed as follow:

January, 2012
Caspiche Project
Copiapó, Chile
The conclusion of the pit optimization stage suggested design a series of practical
phases and final pit for each option. The ultimate pit has been divided into 10 phases in
the Super Pit option and 5 phases in the Hybrid option, based on optimized nested pit
shell guidance, copper grade, gold grade, stripping ratio and the ability to access the pit.
In general, the contained resources in the pit design are composed of three ore types:
oxide, low copper sulphide material named MacNeill and sulphide ore. For the Super Pit
and Hybrid options, the contained oxide resource is similar: 130 Mt of ore with average
gold and silver head grades of 0.36 g/t and 1.59 g/t, respectively. MacNeill ore is slightly
different totalling 84 Mt of ore with average gold and silver head grades of 0.50 g/t and
1.05 g/t, respectively for the Super Pit the Hybrid option contains 74 Mt of ore with
average gold and silver head grades of 0.49 g/t and 1.04 g/t, respectively.
The Super Pit option contains 893 Mt of sulphide ore with average gold, copper and
silver head grades of 0.58 g/t, 0.24% and 1.13 g/t, respectively. The Hybrid option pit
contains 660 Mt of sulphide ore with average gold, copper and silver head grade of 0.63
g/t, 0.26% and 1.18 g/t, respectively.
1.9 Recommendations
The project recommendations are detailed in section 26, however a summary of the main
points indicates that all project options considered return positive cash flow and net positive
value. However due to the greater degree of development required of the Full underground
option the following are recommended
When all additional metallurgical and other Testwork has been completed a trade off
evaluation should confirm that the considerations used in selecting the Super Pit option
as the preferred option are still valid and that it is the option to develop to feasibility study
(FS) level
Further options considering transport to port and concentrate treatment to remove
arsenic should be evaluated in trade off studies prior to initiating detailed feasibility
studies
Additional metallurgical studies regarding material characterization and metals recovery
should be completed which may provide further input into process plant design and
optimization
Mine fleet optimization studies and mine scheduling can be further developed in order to
improve mine scheduling and also plant and equipment matching.
Development of hydrogeological model should be advanced. Whilst on the surface the
project area is dry there exists the potential of disrupting the flow of water into the vegas
(or shallow wetlands) used by the local nomadic community either by operations or
installation of infrastructure.
Further geotechnical modelling in areas of high rotational force equipment such as mills
and crushers and high load areas such as tailings dams and waste dumps should be
initiated

January, 2012
Caspiche Project
Copiapó, Chile
ii i
The following formula was used to calculate AuEq values in each block of the model,
where Au and Cu are the block kriged Au and Cu grades, PAu and PCu are the Au and Cu
prices (1,150 US$/oz and 2.50 US$/lb, respectively), and RAu and RCu are the Au and Cu
projected metallurgical recoveries, 65 % and 85 % respectively for sulphide material, and 78
% for Au and 11 % for Cu in the oxide zone
PCu $ / lb RCu %
AuEq g / t Au g / t Cu % 0.06857 g lb / oz 10,000
PAu $ / oz R Au %
ii
Super Pit Reserves Notes:
1. Mineral Reserves are defined within a mine plan with pit phase designs guided by Lerchs-
Grossman (LG) pit. The LG shell generation was performed on Measured and Indicated materials
only, using a gold price of 1,150 US$/oz, a silver price of 20 US$/oz and a copper price of 2.5
US$/lb, a base mining cost of 1.00 US$/t with incremental of 0.025 US$/t per 15 m bench below the
pit exit and 0.015 US$/t per 15 m bench above the pit exit. Processing and treatment costs used
were 3.40 US$/t of ore and 6 US$/oz of gold and 0.4 US$/oz of silver for oxides, 5.31 US$/t and 6
US$/oz of gold and 0.4 US$/oz of silver for MacNeill and 7.04 US$/t and 6 US$/oz of gold and 0.4
US$/oz of silver for sulphides. Royalties of 3.08 % and 5 % were also applied. Metallurgical
recoveries for oxides were 78 % for gold and 34 % for silver. Metallurgical recoveries for MacNeill
were 55 % for gold in the upper layers and 30 % in the lower layers and 20 % for silver. Silver
metallurgical recovery for sulphides was 50 %. Copper and gold metallurgical recovery for
sulphides was a function of the head grade, defined as:
% Cu Head Grade Copper Recovery Gold Recovery
0.0% to 0.05% 0 0
0.05% to 0.10% 38% 30%
0.10% to 0.15% 68% 45%
0.15% to 0.20% 81% 58%
0.20% to 0.25% 87% 65%
0.25% to 0.30% 89% 69%
>0.30% >90% to 93% max 72%
2.Recoveries are based on a targeted 25 % copper concentrate grade

3.Sulphide and oxide ore reserves are reported at 0.00 US$/t profit
4.Leachable MacNeill ore reserves are reported at 0.49 US$/t profit after cost of rehandle
5.Tonnages are rounded to the nearest 1,000 kt; grades are rounded to two decimal places.
6.Rounding as required by reporting guidelines may result in apparent summation differences
between tonnes, grade and contained metal content.
7. Tonnage and grade measurements are in metric units; contained gold and silver are in troy ounces
The life of mine strip ratio is 3.11
iii
Open Pit Reserves Notes:
1. Mineral Reserves for the open pit are defined within a mine plan with pit phase designs guided by
Lerchs-Grossman (LG) pit. The LG shell generation was performed on Measured and Indicated
materials only, using a gold price of 1,150 US$/oz, a silver price of 20 US$/oz and a copper price of
2.5 US$/oz, a base mining cost of 1.00 US$/t with incremental of 0.025 US$/t per 15 m bench
below the pit exit and 0.015 US$/t per 15 m bench above the pit exit. Processing and treatment
costs used were 3.40 US$/t of ore and 6 US$/oz of gold and 0.4 US$/oz of silver for oxides, 5.31
US$/t and 6 US$/oz of gold and 0.4 US$/oz of silver for MacNeill and 7.04 US$/t and 6 US$/oz of
gold and 0.4 US$/oz of silver for sulphides. Royalties of 3.08 % and 5 % were also applied.
Metallurgical recoveries for oxides were 78% for gold and 34 % for silver. Metallurgical recoveries
for MacNeill were 55 % for gold in the upper layers and 30 % in the lower layers and 20 % for silver.

January, 2012
Caspiche Project
Copiapó, Chile
Silver metallurgical recovery for sulphides was 50 %. Copper and gold metallurgical recovery for

0.0% to 0.05% 0 0
0.05% to 0.10% 38% 30%
0.10% to 0.15% 68% 45%
0.15% to 0.20% 81% 58%
0.20% to 0.25% 87% 65%
0.25% to 0.30% 89% 69%
>0.30% >90% to 93% max 72%
2. Recoveries are based on a targeted 25 % copper concentrate grade
3. Sulphide and oxide ore reserves are reported at 0.00 US$/t profit
4. Leachable MacNeill ore reserves are reported at 0.49 US$/t profit after cost of rehandle
5. Tonnages are rounded to the nearest 1,000 kt; grades are rounded to two decimal places.
6. Rounding as required by reporting guidelines may result in apparent summation differences
The life of mine strip ratio is 1.47
iv
Underground Reserves Notes:
1. Mineral reserves for the block cave in the underground mine were defined using the Laubscher
dilution model, considering a 60 % Dilution Entry Point and a maximum ore column height of 500 m.
The grade of the waste and inferred material was assumed as zero. Only sulphides material was
considered as economical. The economic parameters used for the determination of reserves were a
gold price of 1,150 US$/oz, a silver price of 20 US$/oz and a copper price of 2.5 US$/oz, an
average mining cost of 7.0 US$/t. Processing and treatment costs used were 7.04 US$/t and 6
US$/oz of gold and 0.4 US$/oz of silver. Royalties of 3.08 % and 5 % were also applied. Silver
metallurgical recovery for sulphides was 50 %. Copper and gold metallurgical recovery was a
function of the head grade, defined as:

0.0% to 0.05% 0 0
0.05% to 0.10% 38% 30%
0.10% to 0.15% 68% 45%
0.15% to 0.20% 81% 58%
0.20% to 0.25% 87% 65%
0.25% to 0.30% 89% 69%
>0.30% >90% to 93% max 72%

3. Dilution material considering waste and inferred resources was included as probable reserves

January, 2012
Caspiche Project
Copiapó, Chile
2.0 Introduction
The Caspiche project is located in the 3rd Region of Chile and is wholly owned by Exeter
Resource Corporation (Exeter). The property is located 120 km ESE of Copiapó and is
situated at the southern end of the Maricunga metallogenic belt, between the undeveloped
Cerro Casale gold copper project 12 km to the south, and the Maricunga Gold Mine, 15 km
to the north. The project location is shown is shown in Figure 2.1
Figure 2.1: Caspiche Location Map (Source: Exeter, 2011).
2.1 Terms of Reference

Exeter commissioned Aker Solutions (and sub-consultants) to complete a pre-feasibility
study for the Caspiche Property.
This report has been prepared to define the scope, design features, and overall economics
of the Caspiche project at a pre-feasibility level (equivalent to Class 4 cost estimate,
following the AACE estimating guidelines) for Exeter Resource Corporation.
The study evaluated three mining options for the Caspiche ore deposit:
Super Pit option at a rate of 150 ktpd ore movement
Hybrid option with a 95 ktpd ore movement

January, 2012
Caspiche Project
Copiapó, Chile
Full Underground option with 90 ktpd.

Each of these options considers the additional production of gold by a heap leach operation
exploiting the leachable oxide and hypogene material exposed during prestripping and
ongoing mining operations.
The principal consultants utilized by Exeter in the preparation of this document were:
Aker Solutions: Caspiche Sulphide PFS Final Report.
AMEC International (Chile): Geology and Resource
NCL Ingeniería y Construcción Ltda. Pit Design, Mine Planning and Geotechnical
Revision.
McClelland Laboratories: Metallurgical Testwork
SGS: Metallurgical Testwork
Knight Pièsold: Design of tailings dam wall engineered face.
Technip: Roasting design.
Arcadis: SART plant design
Arcadis/IAL: Environmental Baselines Studies
Cube Consulting: Geology, database, resource estimate and associated topics review.
Exeter provided significant input into the study and was specifically responsible for
preparation of the environmental and permitting section of the report.
2.2 Effective Dates
The effective date of this report is taken to be the date of the completion of the financial
model for the Project on 1st December 2011. The dates for critical information used in this
report are:
The Mineral Resource estimate and block model were completed on June 30, 2011.
The Oxide Stand Alone PFS was issued in June, 2011.
The Mineral Reserve estimate for the project was completed on October 31, 2011.
The final PFS mine plan was issued on October 31, 2011.
PFS mineral process engineering and capital cost estimate were completed on
November 18, 2011.
There were no material changes to the scientific and technical information of the Project
between the effective date and signature date of the report.

January, 2012
Caspiche Project
Copiapó, Chile
3.0 Reliance on Other Experts

The QPs state that they are qualified persons for those areas as identified in the appropriate
QP “Certificate of Qualified Person” attached to this Report. The authors have relied upon
and disclaim responsibility for information derived from the following reports pertaining to
mineral concession tenure, surface rights agreements, permitting, environmental and social
impacts.
The QPs are not responsible for verifying the validity of Exeter’s exploration and mining
concession tenure, rights to the Caspiche property or any operational permits or surface
rights. For this, the authors have fully relied upon the opinion of Mr. Pablo Mir, a Chilean
lawyer, who works as an agent for Exeter and is associated with the law firm of Bofill & Mir
located in Santiago, Chile. The document references is an unpublished letter to Exeter
Resource Corporation from Bofill Mir Abogados dated 30 September 2011 (Mir, 2011). This
opinion is relied upon in sections 4.2 and 4.3 of the Technical Report.
A summary of the environmental baseline of the Caspiche property was prepared by the
authors with reference to the following documentation prepared by environmental specialists
IAL for the Caspiche Property. The authors have fully relied on and take no responsibility for
information derived from experts in the following documents.
Inversiones IAL Ambiental Limitada, Proyecto Studio de Línea Base, Proyecto Minero
Caspiche, August 2010.
Inversiones IAL Ambiental Limitada, Environmental Considerations, EBS Caspiche
Mining Project, June 2011
Information from these documents has been used in Item 20 of this technical report.
The QPs have relied on market analyses derived from experts through the following
document:
Selmar International Services Ltda in Conjunction With Neil S. Seldon & Associates Ltd,
Marketing Assumptions for the Pre-feasibility Study for the Caspiche Project in Northern
Chile, August 2011.
The authors of this report are independent of the company, have extensive experience in
their field and are acknowledged experts in the marketing of copper concentrates globally.
John Wells the QP for item 19 has met with the report authors and reviewed the document
and available supporting information. Information from this report has been used in Item 19
of this report.

January, 2012
Caspiche Project
Copiapó, Chile
4.0 PROPERTY DESCRIPTION AND LOCATION

This description of the property was modified from Van Kerkvoort et al. (2008).
4.1 Location
The Caspiche property is located 120 km ESE of Copiapó in northern Chile (Figure 4.1). The
property is situated at the southern end of the Maricunga metallogenic belt, between the
undeveloped Cerro Casale gold-copper project 12 km to the south, and the operating
Maricunga Gold Mine, 15 km to the north.
Figure 4.1: Caspiche Location Map (Source: Exeter, 2011)
The geographic centre of the property is located at approximately 27° 41’ south latitude and
69° 18’ west longitude. The UTM (Zone 19J) coordinates using datum PSAD56 are
471,000 m east and 6,937,000 m north. Known mineralization on the Caspiche property is
located in two areas: Caspiche Porphyry and Caspiche Epithermals (see Figure 4.2).

January, 2012
Caspiche Project
Copiapó, Chile
Caspiche Porphyry has been referred to as Caspiche Central in previous technical reports.
The Caspiche Epithermals has been referred to as Caspiche III in previous technical reports.
The Caspiche concessions are shown with gray background and Exeter concessions are
outlined in black. Those concessions outlined in red pertain to the option agreement Exeter
entered into with Xstrata in March 2011 where Exeter may acquire up to 100 % of these
properties following completion of set work programs over a 4 yr period. All concessions
shown in Figure 4.2 represent those where Exeter has the earliest dated concession and
can exercise exclusive exploration and exploitation rights over the shown areas.
Figure 4.3 shows additional Exeter concessions (or portions thereof) which overlap third
party concessions. These are covered by a hatched pattern.
4.2 Mineral Tenure and Agreements
Chile is a country with a stable mining industry with mature mining laws. There are two types
of mining concessions in Chile, exploration concessions and exploitation concessions.
With exploration concessions, the titleholder has the right to carry out all types of exploration
activities within the area of the concession. Exploration concessions can overlap, but only
the titleholder with the earliest dated exploration concession over the area as indicated by
their identification (ROL) number, can exercise these rights. For each exploration
concession, the titleholder must pay an annual fee per hectare to the Chilean Treasury.
Exploration concessions have duration of two years. At the end of this period, the
concession may be renewed for 2 more years, in which case at least 50 % of the surface
area must be renounced; or converted, in total or in part, into exploitation concessions.
With exploitation concessions, the titleholder has the right to explore and exploit the
minerals located within the concession area and to take ownership of the extracted minerals.
Exploitation concessions can overlap, but only the titleholder with the earliest dated
exploitation concession over the area can exercise these rights.
The titleholder must pay an annual fee to the Chilean Treasury of approximately
5.80 USD/ha. Exploitation concessions are of indefinite duration, and therefore do not
expire.
Concession owners do not necessarily have surface rights to the underlying land; however,
they do have the right to explore or exploit the concession.
4.2.1 Mineral Rights
The Caspiche property is 100 % owned by Exeter Resource Corporation. Anglo American
Norte S.A. (Anglo), formerly Minera Anglo American Chile Limitada and its affiliate Empresa
Minera Mantos Blancos S.A. (EMABLOS) retains a 3 % Net Smelter Royalty (NSR) on
production from the project under the terms of the option agreement and retains the right to
repurchase the mineral properties for the amount that Exeter has incurred on the property in
the event that commercial production has not commenced by March 31, 2026.

January, 2012
Caspiche Project
Copiapó, Chile
Figure 4.2: Property Map Showing All Exploration and Exploitation Concessions in the Caspiche Area Controlled by
Exeter and the Position of Known Mineralization (Source: Exeter, 2011)

January, 2012
Caspiche Project
Copiapó, Chile
Figure 4.3: Exeter Property Map Showing All Exeter Exploration and Exploitation Concessions in the Caspiche Area
(Source: Exeter, 2011)

January, 2012
Caspiche Project
Copiapó, Chile
At the effective time of this report, the Caspiche property consists of nine granted mining
exploitation concessions totalling 1,262 ha and four exploitation concessions in application
covering an additional 980 ha (Figure 4.2). The granted mining exploitation concessions
derived from the Anglo and EMABLOS option agreement are listed in Table 4.1 and those
under application are listed in Table 4.2.
The Troya property to the north of Caspiche (Troya 1/12, 120 ha) was also included as part
of this agreement (Figure 4.2).
Table 4.1: Exeter Caspiche Mining Exploitation Concessions - Granted

Concession Name ROL Hectares Claim Order Concession Type
Caspiche 1/10 03203 - 1455 - 0 100 ANGLO Exploitation
Vega de Caspiche 1/9 03203 - 1493 - 3 81 ANGLO Exploitation
Caspiche II 1/32 03203 - 1494 - 1 312 ANGLO Exploitation
Caspiche Tercero 1/10 03203 - 1495 - K 100 ANGLO Exploitation
Caspiche IV 1/7 03203 - 4659 - 2 70 EMABLOS Exploitation
Caspiche IV 11/16 03203 - 4727 - 0 2 EMABLOS Exploitation
Caspiche V 1/20 03203 - 4660 – 6 185 EMABLOS Exploitation
Caspiche VI 1 /25 03203 – 4661 - 4 243 EMABLOS Exploitation
Caspiche VII 1/20 03203 - 4662 - 2 169 EMABLOS Exploitation
TOTAL 1,262
Table 4.2: Exeter Caspiche Exploitation Concessions - In Application

CASPICHE VIII 1 AL 30 N/I 300 ANGLO Exploitation in application
ESCUDO IV 1/240 03203-5923-6 240 ANGLO Exploitation in application
ESCUDO V 1/240 03203-5924-4 240 ANGLO Exploitation in application
ESCUDO V1 1/100 03203-5925-2 100 ANGLO Exploitation in application
LADO ESTE 1 1 AL 50 03203-5815-9 50 ANGLO Exploitation in application
LADO ESTE 2 1 AL 50 03203-5816-7 50 ANGLO Exploitation in application
TOTAL 980
The Caspiche exploitation concessions do not have expiration dates, and are in good
standing as of the effective date of this report. Exeter paid the annual license fee for the
Caspiche concessions for the period 2011 to 2012 and Exeter expects to make all payments
required to maintain the properties in good standing in the future. No encumbrances are
registered on the concessions and they are subject only to an additional 0.08 % royalty to a
third party Chilean company.
At the effective date of this report Exeter had been granted 39 mining exploration
concessions over the original concessions, vacant ground and those of third parties, totalling
10,300 ha. These concessions are valid under Chilean law, but are considered junior to the
Caspiche and third party concessions where they overlap. The concessions that overlap the
Caspiche concessions were established by Exeter as a safeguard only. The Panorama and

January, 2012
Caspiche Project
Copiapó, Chile
Bonanza series of concessions were established to allow for various infrastructure location
scenarios. All granted mining exploration concessions are free of encumbrances and they
are not affected by the payment of royalties or other obligations in favour of third parties.
The granted Exeter mining exploration concessions are shown in Figure 4.3 and listed in
Table 4.3.

January, 2012
Caspiche Project
Copiapó, Chile
Table 4.3: Exeter Exploration Concessions - Granted

ESCUDO I 03203-8868-6 200 EXETER Exploration
ESCUDO II 03203-8869-4 300 EXETER Exploration
ESCUDO III 03203-8870-8 300 EXETER Exploration
ESCUDO IV 03203-8871-6 300 EXETER Exploration
ESCUDO V 03203-8872-4 300 EXETER Exploration
ESCUDO VI 03203-8873-2 300 EXETER Exploration
PANORAMA 1 03203-8780-9 300 EXETER Exploration
PANORAMA 6 03203-8785-K 300 EXETER Exploration
LADO ESTE 1 03203-7445-6 100 EXETER Exploration
MERLUZA 1 03203-9145-8 300 EXETER Exploration
CONGRIO 1 03203-9148-2 200 EXETER Exploration
CONGRIO 2 03203-9149-0 300 EXETER Exploration
SALMON 1 03203-9147-4 100 EXETER Exploration
CORVINA 1 03203-9150-4 300 EXETER Exploration
REINETA 1 03203-9151-2 200 EXETER Exploration
BONANZA 1 03203-9357-4 300 EXETER Exploration

January, 2012
Caspiche Project
Copiapó, Chile
On March 4, 2011, Exeter entered into an option agreement with Xstrata Norte
Exploraciones for their VIN properties located immediately east of the Exeter Caspiche
licenses. The properties cover 2,690 ha with mineral rights over 1,793 ha and are shown in
Figure 4.2 and Figure 4.3. The agreement with Xstrata provides for Exeter to acquire 100 %
of the VIN properties by meeting escalating annual drilling requirements, to a total of 15,000
m, within 4 years. After the 15,000 m of drilling is completed, Xstrata has a once only back in
right to acquire a 60 % interest in the property, provided the discovery of a deposit of greater
than 100 Mt at >0.5 % copper has been made. Should Xstrata elect to back in, it must pay
Exeter three times its expenditure on the property. In the event that Xstrata does not
exercise its back in right, its interest will revert to a 2 % NSR. Exeter has the right to
purchase 50 % of the NSR for USD 10 million.
The VIN exploitation concessions do not have expiration dates, and are in good standing as
of the effective date of this report. Exeter will make all payments required to maintain the
properties in good standing in 2011-2012. No encumbrances are registered on the
concessions and they are subject only to the agreement with Xstrata detailed above.
The Xstrata concessions subject to the 100 % option agreement with Exeter are listed in
Table 4.4.
Table 4.4: Xstrata Concessions Subject to the 100% Option Agreement with Exeter
VIN UNO 1 AL 20 N/I 200 EXETER Exploitation
VIN DOS 1 AL 14 N/I 300 EXETER Exploitation
VIN TRES 1 AL 14 N/I 300 EXETER Exploitation
VIN CUATRO 1 AL 14 N/I 300 EXETER Exploitation
VIN CINCO 1 AL 60 N/I 300 EXETER Exploitation
VIN SEIS 1 AL 60 N/I 300 EXETER Exploitation
VIN SIETE 1 AL 60 N/I 300 EXETER Exploitation
VIN DOS 1 AL 46 03203-5685-7 230 EXETER Exploitation
VIN TRES 1 AL 46 03203-5686-5 230 EXETER Exploitation
VIN CUATRO 1 AL 46 03203-5687-3 230 EXETER Exploitation
Figure 4.2 shows those Exeter concessions (including the Caspiche concessions and those
held under the option agreement with Xstrata) in which Exeter holds the earliest dated
concessions and controls exclusive rights to the mineral rights.
Table 4.5 shows all exploration and exploitation concessions applied for and / or controlled
by Exeter.

January, 2012
Caspiche Project
Copiapó, Chile
Table 4.5: Summary of Ground Covered by Exeter Mineral Properties and Details
of Exeter Concessions which Overlap Caspiche and Third Party Concessions
Concession Block Hectares
1 Total Exeter Caspiche concessions (includes Caspiche VIII) 1562
2 Exeter Troya concession 120
3 Unencumbered Exeter concessions (where Exeter has priority4) 4141

Xstrata concessions subject to option agreement with Exeter (less areas
4 1793
where Exeter has priority*)
5 Total Area Controlled By Exeter (1+2+3+4) 7616
Unencumbered Exeter concessions that overlap Exeter Caspiche
6 1262
concessions.
Unencumbered Exeter concessions that overlap third party concessions
7 4114
(including Caspiche and Xstrata)
Total Area Of Exeter Concessions That Overlie Pre-existing Concessions
8 5376
(6+7)
4.2.2 Agreements and Royalties

On October 11, 2005, Exeter entered into an option and royalty agreement (ORA) with
Anglo and EMABLOS. The ORA is subject to Chilean Law and any dispute resulting from
the agreement will be resolved through arbitration by the Centro de Arbitrajes de la Cámara
de Comercio de Santiago A.G.
The original Exeter Anglo agreement covered seven projects, including Caspiche. According
to the terms of the ORA, Exeter would gain an option to acquire a 100 % interest in the
property by meeting certain expenditure and drill requirements, as set out in Table 4.6.
As of March 2011, Exeter had fulfilled the total expenditure and drilling requirements for the
full term of the ORA and in April 2011 entered into an agreement to exercise the option to
purchase the Caspiche project from Anglo American Norte S.A. and title was transferred to
Exeter’s local subsidiary Minera Eton Chile S.A. This new purchase agreement dated April
13, 2011, superseded and replaced the original ORA, added additional tenure to the
Caspiche property package and provided additional definition and details on the transaction.
4
Priority in this instance means that the Exeter properties have the earliest dated ROL number in the area and
thus retain the exclusive right over the respective granted exploration and exploitation tenements in this area.

January, 2012
Caspiche Project
Copiapó, Chile
Table 4.6: Minimum Expenditures and Drilling Requirements under Exeter’s ORA
with Anglo
Year Minimum Expenditure (USD) Drilling Requirements
1 250,000 (spent) 1,500 m (completed)
5 1,000,000 (spent) 5,000 m (completed)
TOTAL 2,550,000 (spent) 15,500 m (completed)
According to the purchase agreement, Anglo holds a royalty equal to a 3 % net smelter
return from the commencement of the commercial production of the Caspiche Project.
USD 250,000 is payable annually for the first 10 years to March 2021 and then USD 1
million per year through March 2026. These payments terminate upon the commencement
of commercial production at Caspiche. The NSR is not payable in months when the gold
price is below 325 USD/oz. If 15 years after having exercised its option Exeter has not
commenced production from the property, Anglo has a right to buy it back by paying the
incurred historical expenditures.
Exeter has paid the annual license fees for all additional concessions for the period 2010 to
2011.
Exeter relied on the opinion of Mr. Pablo Mir of Bofill Mir Abogados regarding the validity of
the option agreement and the title of the optioned lands (Mir, 2011).
The property has been legally surveyed.
4.3 Operational Permits and Jurisdictions
4.3.1 Environmental Permits
On March 6, 2009 Exeter’s DIA (Environmental Impact Declaration) was approved allowing
the company to undertake future exploration activities. All drilling activities at Caspiche have
been permitted through the approved DIA. No additional permits are required for exploration
activities at Caspiche. Additional permits will be required for the exploitation of the Caspiche
orebody. There are no further environmental liabilities known for the project at this time.
4.3.2 Surface and Land Rights
In accordance with that set forth in the Chilean Mining Code any titleholder of a mining
concession, whether for exploration or exploitation, shall have the right to establish an
occupation easement over the surface land as required for the comfortable exploration or
exploitation of its concession. In the event that the surface property owner is not agreeable
to grant the easement voluntarily, the titleholder of the mining concession may request said
easement before the Courts of Justice who shall grant it upon determination of the
compensation for losses as deemed fit.

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Copiapó, Chile
On March 15, 2011, Exeter’s local subsidiary Minera Eton Chile S.A (“Eton”) was granted an
occupation easement over an area of 1.77 hectares where the project camp is located. The
duration of this easement is three years which may be extended only once for three more
years. According to this contract, Exeter must pay a mutually agreed amount every three
months.
On June 16, 2011, the Ministry of Public Land (Bienes Nacionales) granted Exeter a lease
over an area of 1,313.24 hectares in the area of the Caspiche project. The duration of the
initial contract is five years from May 3, 2011 and is renewable thereafter. An annual rental
payment is to be paid quarterly by Exeter.
4.3.3 Water Use Rights
Exeter’s Chilean subsidiary requested three permits for the exploration of underground
water, covering a total area of 69,125 ha. One of these exploration permits covering 10,726
ha was granted by the relevant government authorities on September 13, 2011 while
applications for the two other permits were being processed at the effective date of this
report.
On February 4, 2011, Exeter entered an exclusive option agreement with a private company
to purchase surface use water rights for an amount of 300 litres per second, located
approximately 150 km to the north of the project. According to the Water Option agreement,
Exeter must pay option payments every six months. Exeter has made two of these
payments at the time of this report. Exeter can purchase the water rights upon exercising the
Water Option agreement.

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Caspiche Project
Copiapó, Chile
5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES,

INFRASTRUCTURE and PHYSIOGRAPHY
5.1 Accessibility
Access to the project is by 183 km of paved and gravel road from Copiapó. The initial 22 km
of road running south from Copiapó through the town of Tierra Amarilla is paved highway
which connects to a 161 km treated gravel road that runs east-southeast to the project site
(ruta C-459). Currently, total driving time from Copiapó to site is approximately 3 hours. The
main gravel road serves as a regional transportation route to Argentina and is gradually
being upgraded. This route also serves the nearby Maricunga Gold Mine (Kinross Gold
Corp.) and Cerro Casale gold-copper project (Kinross Gold Corp. and Barrick Gold Corp.).
From this road, several access alternatives exist to the project and other additional access
options have been identified if required (Figure 5.1).
Copiapó is the principal city of Chile’s III Region and has a population of approximately
130,000 people. It has a long history as a mining centre with excellent mine support
infrastructure and also has a significant agricultural industry based on fruit growing. Copiapó
is situated on national Ruta 5 which forms part of the continental Pan-American Highway. It
is serviced by three Chilean airlines and has multiple daily services with Santiago and other
regional centres.
5.2 Climate
The climate at Caspiche is typical for the central Andean Cordillera: windy, cold at night with
limited precipitation, usually in the form of snow. Day-time temperatures in summer months
approach 23 °C, with night-time lows of 5 °C. Day-time temperatures in winter are around
freezing, with night-time temperatures dropping to -15 °C. Exploration field seasons
generally run from late October through mid-May. Operating mines in the area, such as the
nearby Maricunga Gold Mine, are operated year-round at elevations of 4,200 to 4,500
m.a.s.l. Upon development, it is expected that the mine will be operated year-round. Exeter
operates three automatic weather stations to monitor detailed climatic variations.
5.3 Local Resources
There are no significant population centres in the immediate vicinity of the Caspiche project.
There are a number of local communities who raise crops and livestock in conducive areas
of the valleys that drain the region. However there is a significant skilled and semi-skilled
workforce population in the Copiapó valley stretching from Tierra Amarilla to the north
through Copiapó to Caldera on the coast and on up through Regions II and I to Antofagasta
and beyond. Chile generally is an advanced country in terms of mining technology and
infrastructure and supplies high quality mining professionals to other countries.
The Copiapó river and its tributaries are the main source of drinking and
industrial/agricultural water for the Region and its resources are currently fully exploited.
New and developing mining projects are either planning to exploit high altitude Andean
endorheic basins with no hydraulic connection to the Copiapó River, or raw or desalinated
sea water.
All workforce transport is by private vehicles. Existing mines and exploration projects house
their workers in fully serviced camps with workers travelling in and out on a roster system.

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Exeter will follow this procedure during construction and operation of Caspiche. Average
travel time from Copiapó to the Maricunga region by bus is 3 to 4 hours.
Figure 5.1: Caspiche Location Map (Source: Exeter, 2011)

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Copiapó, Chile
5.4 Current Infrastructure

Caspiche is a green field site, and thus existing site infrastructure is limited to an exploration
camp and roads.
The property is large enough to host an open pit or underground mining operation, although
optimum locations for infrastructure may overlie third party mining claims. Concession
owners have the right to establish an occupation easement over the surface as required for
the comfortable exploration or exploitation of the concession. The majority of the area
required by Exeter is owned by the Chilean government. The process for obtaining permits
for easements and water rights is straightforward in Chile.
On March 15, 2011, Exeter was granted an occupation easement over an area of 1.77 ha
where the project camp is located. In addition, the Ministry of Public Land of the Chilean
government (Bienes Nacionales) granted Exeter a surface rights lease over an area of
1,313.24 ha in the area of the Caspiche project. The duration of the initial occupation
easement and surface rights contract is three and five years respectively with both being
renewable thereafter.
As of the effective date of this report, Exeter entered an exclusive option agreement with a
private company to purchase surface use water rights for an amount of 300 l/s and
negotiations are ongoing for access to additional water.
Exeter’s Chilean subsidiary also requested three permits for the exploration of underground
water, covering a total area of 69,125 ha. One of these exploration permits covering 10,726
ha was granted by the relevant government authorities on September 13, 2011 while
applications for the two other permits were being processed at the effective date of this
report.
Power for the existing projects in the Maricunga region is normally sourced from near
Copiapó and carried to the mines by private power lines owned by the operating companies.
Copiapó and the surrounding areas are serviced by an extensive power grid known as the
Central Interconnected System, which also services the main population centres around
Santiago and further south. Plans are currently being implemented to considerably
strengthen the power generation and distribution system in the region by the development of
a new port and coal-fired power station on the coast to the east of Copiapó. The current
schedule for start up of this development is the second half of the decade which should be
ideal timing for Caspiche project development.
5.4.1 Physiography
The Caspiche property is located high in the central Chilean Andes within the region
commonly described as the Atacama Desert. The topography within the property is almost
entirely volcanic in nature and consists of broad open areas of moderate relief and
prominent ridges with limited cliff zones of exposed bedrock (Figure 5.2 and Figure 5.3). The
Caspiche property itself lies within the catchment of the Copiapó river tributary system,
however a little further to the north-west an intermediate ridgeline and valley system closes
the high Andean drainage resulting in a chain of endorheic saline lakes stretching
considerable distances within the high Atacama region.
Elevation within the property ranges from 4200 m to 4700 m.a.s.l. Vegetation is limited to
grasses and small thorny bushes and small marsh areas at the junction of creeks. Wildlife

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includes guanaco, vicuña, foxes, rabbits, ground squirrels, hawks, condors and small
reptiles.
Figure 5.2: Photograph of Caspiche Property Looking East (Source: Exeter, 2011)
Figure 5.3: Photograph of Caspiche Property Looking West (Source: Exeter, 2011)

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6.0 HISTORY
The following project history was modified from Van Kerkvoort et al. (2008).
The southwest part of the property, which includes Caspiche Porphyry, was staked in 1986
by Anglo as part of a generative exploration program covering the entire Maricunga
metallogenic belt. Newcrest held the project through an option agreement with Anglo from
1996 to 1998, during which time they discovered the Caspiche Epithermals mineralization
and staked an additional 2,561 ha to cover it. Newcrest decided to abandon exploration in
South America in 1998, and the ground held by Newcrest lapsed and became open. Anglo
subsequently staked portions of this ground to form the current Caspiche property position.
Anglo was the first to explore the Caspiche area. Between 1986 and 1990, Anglo conducted
three field campaigns on the property. The first campaign consisted of rock-chip and grid-
soil geochemical surveys, where a total of 842 rock-chip samples and 431 soil samples were
collected. These surveys identified a 650 m by 300 m zone of the Caspiche Porphyry area
that was strongly anomalous at surface in gold, silver, copper, and arsenic. Eighty rock
samples returned values greater than 1 g/t gold, with a high value of 5.45 g/t gold.
During the 1988 field season, Anglo drilled 568 m in 12 shallow air rotary holes in the
Caspiche Porphyry sector. These drill holes targeted near-surface gold mineralization
identified in hydrothermally altered volcanic rocks, and delineated by geochemical surveys.
Drilling from this campaign intersected significant widths of mineralization in several holes,
including 32 m grading 1.10 g/t gold in SHC-4 and 48 m grading 1.03 g/t gold in SHC-5.
During the 1990 season, Anglo drilled 950 m in six reverse circulation (RC) holes, exploring
the Caspiche Porphyry gold system to greater depths. Results from this program yielded
narrow intersections of gold mineralization, including 10 m grading 1.09 g/t gold in SPC-02
and 34 m grading 0.63 g/t gold in SPC-05.
During the first field season of the option in 1996-997, Newcrest conducted geological
mapping; rock geochemical surveys; aeromagnetic and IP / resistivity geophysical surveys;
and drilled 3,298 m in 14 RC drill holes. Twelve holes were drilled at Caspiche Porphyry to
follow-up disseminated mineralization discovered by Anglo, and testing of targets defined by
the geochemical and geophysical surveys. Two holes were drilled in the Caspiche
Epithermals area, targeting epithermal-style mineralization indicated by anomalous gold and
mercury surface geochemistry.
During the 1997-1998 field season, Newcrest conducted soil geochemical surveys,
geological investigations and drilled 4,123 m in 22 RC drill holes at the Caspiche Porphyry
and Caspiche Epithermals prospect areas. Porphyry-style gold-copper mineralization was
encountered in several of the drill holes at Caspiche Porphyry.
Exeter optioned the property in October 2005. No significant exploration work was reportedly
conducted on the property from the end of the Newcrest drill campaign until Exeter began
work.
In 2006 and 2007, Exeter compiled historic exploration data into a geographic information
system (GIS), reprocessed existing geophysical data, completed geological mapping of the
property area, collected rock-chip samples and conducted controlled source audio-
frequency magnetotellurics (CSAMT), pole-dipole induced polarization (PDIP), and natural
source magnetotellurics geophysical surveys. In 2008 and 2009, Exeter completed property-
scale geological mapping, a PIMATM (field portable, infrared spectrometer useful for mineral

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identification) study of drill core samples, a soil orientation survey over the Caspiche
Porphyry area, a reinterpretation of the regional geophysical data and age dating work.
From 2006 through September 2011, Exeter completed over 66,000 m of drilling in 99 drill
holes, mostly as deep diamond drill holes in the Caspiche Porphyry area. Other work
conducted during this period included geological mapping of the surface of the property,
geochemical and geophysical surveying to help guide exploration for additional intrusive
centres, geotechnical logging and geomechanical testing of a significant number of oriented
drill cores and metallurgical testwork to determine expected metallurgical recoveries and
guide process design.

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Copiapó, Chile
7.0 GEOLOGICAL SETTING AND MINERALIZATION

The following description of the regional geology was modified from Van Kerkvoort et al.
(2008).
7.1 Regional Geology
The Caspiche property is located in the Maricunga metallogenic belt, a north-northeast
trending, linear zone containing at least 14 occurrences of gold and / or silver mineralization
between latitudes 26° and 28° S in the Andean Cordillera of northern Chile (Vila and Sillitoe,
1991; Figure 7.1).
The Maricunga belt consists of a series of volcanoes of andesitic to dacitic composition
(Figure 7.2). These volcanoes are Oligocene to late Miocene in age and form part of the
continental margin volcanic-plutonic arc. These volcanic rocks are generally restricted to
north-south trending grabens, and Paleozoic to Triassic age basement rocks are exposed in
intervening horst blocks. Volcanism occurred in four events grouped into two main episodes.
The initial event began in late Oligocene and lasted until early Miocene age (26 to 20 Ma).
The second occurred during the middle Miocene age (16 to 11 Ma). These events resulted
in the creation of numerous stratovolcanic complexes and dome fields over the length of the
belt. The third and fourth episodes of dacitic volcanism occurred in the late Miocene age (11
to 7 Ma) and late Miocene to early Pliocene age (7 to 5 Ma), respectively, and included the
formation of two pronounced volcanic edifices, Volcán Copiapó and Volcán Jotabeche
(Figure 7.2).
Two main structural trends are important in the Maricunga belt. North-south to north-
northeast trending high-angle reverse faults form a series of horsts and graben blocks. It is
these graben structures that host significant west-northwest to north-northwest trending
structures occuring as normal trans-tensional faults, dykes, veins and linear alteration
zones, and are associated with alteration and mineralization in late Oligocene to early
Miocene age volcanic centres.
The Maricunga belt hosts numerous significant mines and advanced projects. The deposits
are typically of the porphyry gold-copper style or high sulphidation epithermal gold-silver.
Examples of porphyry deposits in the Maricunga belt are the Maricunga mine, Cerro Casale,
and Lobo Marte. High sulphidation examples include La Coipa and La Pepa. Figure 7.2
illustrates the regional geology of the Maricunga metallogenic belt. A strong northwest-
southeast structural control to the mineralization is typical of many of the deposits. Some
Maricunga deposits have epithermal alteration textures superimposed (telescoped) onto
porphyry alteration textures.

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Figure 7.1: Metallogenic Belts of Northern Chile and Argentina (Source: Vila and
Sillitoe, 1991)

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Copiapó, Chile
Figure 7.2: Regional Geology of the Maricunga Metallogenic Belt (Source: Vila and
Sillitoe, 1991)

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Copiapó, Chile
7.2 Property Geology

The following description of the property geology was modified from Tolman and Perkins
(2010)
In Figure 7.3, the black line indicates the outer property boundary of the main property block,
excluding Caspiche 1/10, Vega de Caspiche 1/9, and 2009 Exeter concession blocks.
Figure 7.4 shows a representative geological cross-section of the Caspiche Porphyry
deposit looking NNW.
Figure 7.3: Bedrock Geology of the Caspiche Property (Source: Exeter, 2011)

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Caspiche Project
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Figure 7.4: Gold Grade Histogram in Red, Copper Grade Histogram in Purple
Drilling during the 2008-2009 and 2009-2010 campaigns led to an improved understanding
of the alteration model at Caspiche Porphyry. The extent of late-stage advanced argillic
alteration was confirmed, and the distribution of potassic alteration in the lower levels of the
system was established. Supergene oxidation occurs dominantly as a flat lying blanket

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deepest in the central parts of the system. Vuggy quartz ledges intersected in the northern,
eastern and southern part of Caspiche Porphyry are oxidized to depths of 150 to 200 m.
Infill drilling during the 2010-2011 campaign has confirmed the veracity of the previously
proposed Caspiche alteration and geological model and has provided an improved context
for peripheral exploration. Interpretation of drill core (by Exeter geologists and consultants),
together with recent geological modelling and resource estimation has highlighted the
following significant findings:
The host rocks at depth surrounding the porphyritic intrusive rocks are flat lying, at least
700 m thick, and contain sedimentary breccia, andesitic volcanic rocks, and abundant
sandstone and siltstone.
The andesitic volcanic breccia is an important host to mineralization in the shallow parts
of the Caspiche Porphyry deposit and is widely distributed in the immediate Caspiche
area.
Modelling of the porphyritic intrusives shows them to be a sigmoidal, Z-shaped body in
which the early diorite porphyry phase is surrounded by a discontinuous shell of inter-
mineral quartz diorite porphyry.
The propylitic halo to the Caspiche Porphyry system has been intersected to the
southwest about 600 m from the porphyry intrusive contact. Further definition of this halo
at depth, below the overprinted advanced argillic zone, should effectively delimit the
system.
A potassic-calcic zone, defined by the presence of actinolite, K-feldspar and magnetite,
occurs at depth in the centre of the system. It is sulphide deficient, and forms a base to
the ore zone.
An extensive zone of chlorite-sericite with and without albite alteration of siliciclastic
sedimentary rocks appears to close off the system eastwards. However, a distal
propylitic zone, like that defined previously to the west, has yet to be encountered.
Deep drilling along the west side of the system demonstrated the existence of a 700 m
thickness of monotonous, polymict breccia, thereby confirming that it must define a
phreatomagmatic diatreme.
The MacNeill gold-zinc zone, confined beneath the underside of the eastward-flared,
late-mineral diatreme contact, is assigned an intermediate-sulphidation epithermal origin.
It appears to be the product of the final mineralizing event in the Caspiche system, post-
dating all alteration.
The principal rock types defined at Caspiche are assigned to four broad units: pre-
mineral sedimentary rocks, volcanic breccia of probable diatreme origin that also
predates much of the mineralization, several porphyry intrusions, and a post-mineral
diatreme breccia.

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7.2.1 Volcano-sedimentary Units

The sedimentary rocks are separated by disconformities. These are informally divided into
the pre-mineral Caspiche Formation of Jurassic to Cretaceous age; the pre to syn-mineral
Rio Nevado Formation of Oligocene to Lower Miocene age; and the post-mineral Yeguas
Heladas Formation of Middle to Upper Miocene age.
The Caspiche Formation is exposed at the western margin of the property (shown in purple
in Figure 7.3). It is composed of columnar jointed andesite lava flows. Approximately 1 km
west of the property boundary, the lavas are viewed overlying a sedimentary sequence of
rocks which range from volcanoclastic siltstones to sedimentary breccias.
The Rio Nevado Formation consists of undifferentiated felsic pyroclastic rocks. The
sequence contains multiple volcanic events forming a volcanic pile that is a minimum of 200
m thick (shown in light green in Figure 7.3). At Caspiche Epithermals, in the east of the
property, the formation is crudely stratified with shallow, west-dipping horizons several
metres thick. The rocks range from fine tuffs to pyroclastic breccias. Locally, thinly laminated
siltstone separates the pyroclastic horizons. On the northern flank of Caspiche Porphyry, the
formation contains pumice-rich pyroclastic flows that are locally welded. The upper portion of
the formation is composed of felsic, flow-banded, and auto-brecciated lava.
The Yeguas Heladas Formation consists of a series of stratified volcanic rocks that post-
date alteration and mineralization (shown in tan and gray in Figure 7.3). This unit comprises
a lower conglomerate horizon overlain by non-welded pyroclastic deposits that contain
vuggy silica and massive silica-altered clasts of the Rio Nevado Formation. The youngest
volcanic unit on the property is a glassy, porphyritic, flow-banded and auto-brecciated felsic
lava.
Unconsolidated quaternary deposits cover over 90 % of the Caspiche project area, and
include debris flows, glacial moraines, colluvium, alluvium and “vegas” (local term for small
wetlands that are common on valley floors in the Andes). Drilling indicates the quaternary
cover can be up to 80 m thick. These rocks are not shown in Figure 7.3 in order to show the
distribution of the bedrock units.
In the Caspiche Porphyry area, the sedimentary rocks surround the composite porphyry
stockworks on all sides roughly 500 m to 750 m below the surface (3700 m to 3870 m
elevation level). The rocks comprise a monotonous sequence of hornfelsed and highly-
altered sandstones and siltstones that in places display no obvious textural variation over
tens of metres; hence, their previous designation as microdiorite. Locally, however, relict
bedding at high angles to the core axis is observed, confirming the sedimentary origin of the
package, which exceeds 400 m in thickness. Minor bodies of probable andesite porphyry,
characterized by centimetre-sized plagioclase phenocrysts in a black, fine-grained, and
highly altered groundmass, cut the sedimentary rocks locally, particularly near their upper
contact. The andesite porphyry bodies are clearly intrusive because of the presence of
chilled margins, but it is uncertain if they represent sills, dykes, or both.
The sedimentary rocks are overlain by 500 m to 750 m of volcanic breccia. The extent of this
unit in the Caspiche Porphyry area is very extensive and has been noted over more than 1
km north-south and 3 km east-west. The breccia is polymictic and mainly composed of
rounded to sub-angular clasts surrounded by a difficult to identify, highly altered, fine-
grained, fragmental matrix. The clasts are typically between 1 cm and 3 cm in size, but
locally up 10 cm. No evidence of bedding or size sorting has been observed. Intense

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alteration precludes certain identification of most clast lithologies, but the remnant textures
and characteristic absence of magmatic quartz grains suggest that andesite, diorite and their
porphyries predominate. Hornfelsed sedimentary rock and, very locally, andesite porphyry
clasts are prominent in the breccia within a few metres of the contacts with these rock types.
Although most clasts are internally homogeneous, recognition of veinlets confined in a
minority of clasts is important, because it indicates hydrothermal activity occurred prior to
breccia formation.
The origin of this volcanic breccia unit remains uncertain; however, it seems likely to be part
of a large diatreme. The lack of bedding and size sorting over several hundred vertical
metres would appear to preclude subaerial accumulation of the breccia. The presence of
mineralized material in its clasts suggests that the diatreme was emplaced after the
Caspiche porphyry system was initiated. It is unlikely that such material could have been
transported from a distant volcano. Diatreme formation may even have aborted an early
hydrothermal event at Caspiche. Previous interpretations centred the intrusive vent in the
Caspiche Porphyry area, but the spacing of the drill pattern after the 2008-2009 drill
programs effectively negated this possibility. Therefore, the vent is currently thought to lie
beyond the core of the system, possibly to the north.
7.2.2 Intrusive Rocks
Exposed intrusive rocks at Caspiche are limited to a series of small felsic porphyritic
stockworks located at Caspiche Porphyry that extend to the north and south. Locally, these
exhibit chilled margins and flow banding. At depth at Caspiche Porphyry, two main porphyry
intrusions constitute the well mineralized Caspiche stockwork, and a third porphyry intrusion
abuts the Caspiche stockworks to the west and south. The two main porphyry intrusions are
referred to as the Early Diorite Porphyry (DP) and the Early Inter-Mineral Porphyry (QDP1)
and are interpreted to be early and early inter-mineral phases of the same intrusions. The
third porphyry referred to as the Late Inter-Mineral Porphyry (QDP2) and is interpreted to be
a late to inter-mineral phase.
The mineralized stockwork measures approximately 300 m by 400 m in plan, and does not
vary appreciably in size over its defined 1200 m vertical extent. The DP appears to expand
in size below the 3600 m elevation level, although it is intruded by a body of the Early Inter-
Mineral Porphyry at this level. The bulk of the Early Inter-Mineral Porphyry lies east of the
Early Diorite Porphyry, although a narrow, dyke-like body of Early Inter-Mineral Porphyry
also follows the western side of the Early Diorite Porphyry. A fine-grained diorite porphyry
occurs locally as a minor dyke within the mineralized stockworks, which it appears to post-
date. The Late Inter-Mineral Porphyry is well-defined at shallow levels, where it constitutes a
curved, body that wraps around and truncates the western and southern sides of the earlier
intrusions. At depth, however, the Late Inter-Mineral Porphyry is appreciably smaller.
The Early Diorite Porphyry is considered dioritic in composition because of the lack of quartz
phenocrysts. Plagioclase and biotite phenocrysts are abundant and accompanied by
subordinate hornblende. The original texture of the Early Diorite Porphyry is partly
obliterated by intense alteration and veining. Veining is dominated by an intense, multi-
directional, A-type quartz-veinlet stockwork. Near the top of the intrusive body, this type of
veining constitutes more than 50 % of the rock mass. Magnetite-only and quartz-magnetite
veinlets are also widely developed as part of the stockwork.

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The inter-mineral phases are coarser-grained and texturally better preserved than the DP.
The inter-mineral phases contain quartz phenocrysts, and thus are interpreted to be quartz
diorite porphyries. The Late Inter-Mineral Porphyry is noticeably coarser-grained and
contains larger quartz phenocrysts than the Early Inter-Mineral Porphyry. The Early Inter-
Mineral Porphyry is cut by abundant, relatively narrow (<0.5 cm), A-type quartz veinlets, but
truncates many of the quartz veinlets in the early porphyry, including all those with widths of
1-4 cm. Quartz veinlet xenoliths are commonplace in the Early Inter-Mineral Porphyry,
especially near contacts with the Early Diorite Porphyry. In contrast, the Late Inter-Mineral
Porphyry is only weakly veined and, in its western parts, displays low alteration intensity and
preservation of magmatic biotite and magnetite.
7.2.3 Structure
Mapping of bedrock exposures indicates the main structural orientations at Caspiche to be
northwest, east-northeast, and roughly north-south. These same orientations are observed
as lineaments on Landsat satellite imagery and airborne magnetic imagery. Newcrest
interpreted several of these lineaments to be major fault zones, including a west-northwest
trending structure north of Caspiche Porphyry. Exeter found no clear evidence of this fault
zone being a controlling feature in the field during geological mapping in 2009.
Several minor faults and breccia systems have been identified within the Caspiche prospect
from drilling. Despite preliminary attempts, no compelling correlations have been drawn to
map the existence of major late faults indicating significant offsets, with the exception of a
single vertically dipping, structure orientated NW-SE on the north-eastern edge of the
system beyond the mineralized envelope. Another significant zone of structural weaknesses
lies on the western contact of the lower flange of the late diatreme where scouring from the
diatreme has generated a zone of 3 to 4 m of finely ground rock with a sand size
consistency.
The prior existence of major mantle tapping structures is evidenced by the emplacement of
the cluster of westward younging porphyry intrusions. The emplacement of the porphyry
bodies appears to have healed or closed the upper extremities of these structures and/or the
potential trap site which halted the porphyry intrusions ascension towards the paleo surface
at least in the area of the Caspiche prospect.
The broadly west younging porphyry association is attributed to progressive emplacement
along the porphyry-sedimentary basement contact which would be the path of least
lithostatic resistance to ascending magmas. Detailed checking of minor faults with consistent
orientations between adjacent drillholes commonly shows different thicknesses, styles and
fill mineralogy suggesting the correlation with consistent orientation may not imply
connectivity. These can be interpreted to be related to secondary and tertiary fracturing of
rock which remained unhealed during inter-mineral and late-mineral porphyry emplacement
and brecciation.
7.2.4 Alteration
There are four end member alteration types noted on the Caspiche property:
Porphyry style stockwork vein and associated alteration;
Retrograde hydrothermal alteration;
High sulphidation epithermal style alteration;

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Supergene leaching and oxidation.

At Caspiche Porphyry, all four alteration styles are present. At Caspiche Epithermals no
porphyry-style stockwork vein associated alteration has been observed, though it may be
present at depth or laterally beneath cover.
Alteration is complex at Caspiche Porphyry. There are strong vertical controls, as well as
proximal versus distal alteration mineralogy assemblages for the various styles. Pervasive
overprinting by successive alteration events has frequently destroyed most primary textures,
making identification of the original lithologies difficult. Porphyry stockwork style
mineralization and associated alteration is not observed at surface, but has been intersected
extensively in drill holes. The alteration comprises an inner potassic zone of potassium
feldspar and biotite. These minerals are observed as independent zones and overlapping
other alteration styles. Where unaffected by later alteration, magnetite as disseminations
and hairline veinlets accompany the potassic alteration. Potassic alteration has a positive
correlation with veining. Frequently potassium feldspar is observed as selvages on veins up
to several centimetres wide which grades out into secondary biotite-dominated alteration.
Biotite alteration is also developed in that portion of the Cretaceous Caspiche Formation
basement that has undergone high temperature pro-grade hornfels contact metamorphism.
In volcanic pendants immediately overlying the felsic stocks a strong patchy alteration is
observed comprising irregular blebs of silica and clay. This has been described as a breccia,
but can be traced laterally, where it grades into lithic tuffs. In some intrusive stockworks the
upper cupola zone contains an intense “wormy” quartz texture. At deeper levels more typical
A- and B-style porphyry stockwork veining is observed with late stage sulphidic D-veins
cutting both the earlier quartz veining and extending into the overlying volcanic units.
In some cases, propylitic alteration assemblages comprising epidote-chlorite-pyrite are
observed in surface exposures within 1 km from the limits of potassic-altered zones, but
generally propylitic alteration only occurs more distally. Propylitic-altered rocks have not
been intersected to date on the western side of the system. The rocks between the potassic
and propylitic alteration zones are variably clay-altered, but it is not certain if this is an argillic
alteration halo related to the porphyry mineralizing event or if it is the result of the late-stage
retrograde argillic-phyllic event.
A potassic-calcic zone, defined by the presence of actinolite, K-feldspar and magnetite,
occurs at depth in the centre of the system, is sulphide deficient, and forms a base to the ore
zone.
An intense retrograde argillic-phyllic (clay-sericite) alteration has affected the upper levels of
the porphyry system, and locally extends deep within it. In the strongly-affected zones, the
potassic alteration mineral assemblages have been completely overprinted with clay and
philosilicate minerals, leaving zones of strong stockwork veining with a soft white “bleached”
matrix. Potassium feldspar and biotite have been completely replaced. The contact between
this zone and the underlying potassic alteration dips toward an apparent “draw-down” zone.
The retrograde event has converted magnetite to specular hematite (martitization), but it
does not appear to have affected the gold and copper distribution.
In some lithologies, and most notably in the lithic tuff unit, selective alteration of clasts to
clay and matrix flooded with silica has produced patchy alteration giving the rock a
brecciated appearance. A similar texture is observed proximal to intrusive contacts. This
texture is thought to be the product of abundant xenoliths, or magma stopping.

January, 2012
Caspiche Project
Copiapó, Chile
The high-sulphidation epithermal zone is characterized by siliceous ridges which outcrop on

the peripheries of the Caspiche Porphyry mineralization. The ridges comprise strongly
silicified crystal-lithic tuff and quartz-feldspar porphyry. These units exhibit typical vuggy
residual silica textures with rectangular cavities where feldspar phenocrysts have been
totally leached from the rock and the matrix is replaced by silica. In the volcanic units, lithic
clasts have been selectively dissolved or replaced by kaolin – alunite – quartz ± pyrophylite
± dickite assemblages. These zones are interpreted as high-level advanced argillic-altered
silica cap zones. The silica caps contain structurally controlled tufasite breccia dykes with
brecciated silica cap material hosted in a kaolin-silica-alunite matrix. These structural zones
can be traced outward to adjacent argillic-altered areas where they are observed as linear
zones of vuggy residual silica, or silica-ledges.
Oxidation and supergene effects are notable in the upper 100 m to 150 m and occasionally
down to 200 m. The primary effect is the oxidation of pyrite, with the resultant acid
conversion of minerals other than silica into kaolin. The contact between oxide and sulphide
material is sharp. Minor chalcocite is observed on the oxide-sulphide contact, but there is no
development of copper enrichment, presumably because copper-enriched solutions
migrated laterally. Visually the contact is easy to pick and is geochemically sharp with a
notable depletion in copper in the oxide zone to less than 0.03 %.
Outcropping hydrothermal alteration at Caspiche Epithermals is developed entirely in felsic
lithic tuffs of Rio Nevado Formation. Zoned alteration is observed with leached zones of
residual silica restricted to narrow linear structures within more widespread silica flooding. At
the eastern extent of the Caspiche Epithermals zone at the boundary of the property, the
rocks are affected by low-temperature silica and argillic mineral assemblages that are
characteristic of steam-heated alteration which forms above paleo-water tables in high-
sulphidation-style alteration systems.
7.2.5 Mineralization
The following description of the mineralization was modified from Van Kerkvoort et al.
(2008).
Mineralization has been encountered in two main areas of the Caspiche property. These two
areas are called Caspiche Porphyry and Caspiche Epithermals.
All high-sulphidation epithermal, intermediate-sulphidation epithermal and porphyry-style
mineralization occur at Caspiche Porphyry. High-sulphidation epithermal-style alteration
outcrops at Caspiche Porphyry, and hosts disseminated gold in felsic volcanic rocks and
dioritic to quartz dioritic quartz-feldspar porphyry intrusive rocks. Modelling of the
mineralization indicates the presence of an upper gold-bearing oxide zone underlain by a
lower gold-copper-bearing sulphide zone. Porphyry-style stockwork quartz veining,
containing gold and copper mineralization, has been intersected over broad lengths in drill
holes. Gold only mineralization from the MacNeill zone partially overprints and upgrades the
western edge of porphyry style mineralization and is confined to the underside of the
eastward-flared, late-mineral diatreme contact. No porphyry-style mineralization or
intermediate-epithermal style mineralization has been observed at surface on the property.
This is in part due to the extensive alluvium and colluvium which covers approximately 90%
of the Caspiche property area.
Mineralization is hosted primarily by diorite porphyry and mineralized basement and
andesitic volcanic rocks, covered by up to 60 m of alluvial waste. The upper 100 – 200 m

January, 2012
Caspiche Project
Copiapó, Chile
below the surficial deposits is generally mineralized only in gold and low level silver, and the
onset of copper mineralization generally coincides with the commencement of sulphide
mineralization. No significant supergene oxide mineralization has been observed at
Caspiche Porphyry. Mineralized intercepts in and around the diorite porphyry appear to have
good continuity, and yield consistent intercepts of several hundred metres of porphyry-style,
sulphide mineralization grading between 0.3 g/t and 1.0 g/t gold, and 0.1 % and 0.4 %
copper. Near surface, oxide intercepts at Caspiche Porphyry generally range between 20 m
and 200 m grading between 0.2 g/t and 1.2 g/t gold and <0.02 % copper.
At Caspiche Epithermals prospect, only high-sulphidation epithermal style alteration and
mineralization have been observed and intersected by drilling to date. Potential for porphyry-
style mineralization at depth remains, because drilling to date at Caspiche Epithermals has
mostly targeted near-surface high-sulphidation epithermal mineralization and thus reached
only relatively shallow depths in most areas. One deeper drill hole completed in 2009 to the
west of the system and an additional two deeper drillholes in the southern portion of the
prospect failed to intersect intrusive rocks or proximal porphyry-style alteration and
mineralization downgrading the potential for these areas.

January, 2012
Caspiche Project
Copiapó, Chile
8.0 DEPOSIT TYPES

The following discussion of deposit types was modified from Van Kerkvoort et al. (2008).
Stockwork-hosted, gold-copper porphyry, high-sulphidation epithermal gold mineralization
and intermediate-sulphidation gold mineralization styles have been recognized on the
Caspiche property. Mineralization at Caspiche Porphyry is interpreted to be a high-
sulphidation epithermal gold deposit above a gold-rich, gold-copper porphyry deposit. The
MacNeill zone, confined beneath the underside of the eastward-flared, late-mineral diatreme
contact, is assigned an intermediate-sulphidation epithermal origin. It appears to be the
product of the final mineralizing event in the Caspiche system, post-dating all alteration and
partially overlapping Caspiche mineralization.
The Maricunga metallogenic belt contains significant gold-rich, gold-copper porphyry
deposits, and high-sulphidation epithermal gold ± copper ± silver systems. In some cases
the high-sulphidation epithermal systems are superimposed on the porphyry style
mineralization. These deposit types are different from the copper-dominant, large porphyry
copper deposits found further north in Chile.
Vila and Sillitoe (1991) described the style of mineralization in the Maricunga belt as follows:
Porphyry-type mineralization in the Maricunga belt was generated beneath andesitic-
(dacitic) stratovolcanoes. Volcanic rocks were intruded by isolated, composite dioritic
porphyry stocks. Weakly porphyritic microdiorite and associated intrusion breccia are
prominent stock components.
Gold-copper mineralization is believed to have been introduced with K silicate alteration,
which is well preserved only at the Amalia, Refugio, and Cerro Casale (Aldebarán)
prospects. K silicate alteration is overprinted and commonly obliterated by sericite-clay-
chlorite assemblages of intermediate argillic type. Much of the gold is present in quartz
stockworks. Iron oxides, both early magnetite and late hematite, constitute 5 to 10 vol
percent of mineralized zones. Sulphides are dominated completely by pyrite but include
minor chalcopyrite and trace bornite and molybdenite. Supergene leaching of copper is
developed to various degrees, but enrichment is developed only incipiently.
Several porphyry-type stockworks are overlain by pyrite and alunite-rich advanced argillic
alteration, which carries barite, native sulphur, enargite, and at La Pepa, high-grade, vein-
type gold mineralization of high sulphidation, epithermal type. The quartz stockworks and
advanced Argillic caps are telescoped at Marte, Valy, Santa Cecilia, and La Pepa but are
separated by a chloritized zone transacted by a swarm of gold-poor, polymetallic veins with
quartz-alunite selvages at Aldebarán.
Marte and Lobo are rich in gold (1.43 and 1.6 ppm) and poor in copper (0.05 and 0.12 %)
and molybdenum (46 and ~10 ppm), and may be designated as porphyry gold deposits.
However, gold contents are lower (0.6-1 ppm) and hypogene copper contents probably
higher at Refugio and Aldebarán.
The depth of erosion of Maricunga porphyry-type systems is believed to decrease from the
K silicate zones exposed at Refugio and in the Casale Hill sector at Aldebarán, through
Marte, Valy, Santa Cecilia, and La Pepa where remnants of advanced Argillic caps are
present, to the highest, mercury-rich part of the Cathedral Peak sector at Aldebaran and
zones higher than and west of Marte which comprise advanced argillic alteration rich in
native sulphur.

January, 2012
Caspiche Project
Copiapó, Chile
Figure .8.1 shows a generalized porphyry model and the relationship between the porphyry
and epithermal environments.
Figure .8.1: Generalized Porphyry Model (Source: Vila and Sillitoe, 1991)

January, 2012
Caspiche Project
Copiapó, Chile
9.0 EXPLORATION
The Caspiche property has been explored by Anglo, Newcrest, and Exeter from 1986 to the
effective date of this report. Exploration activities and results, organized by these
companies, are presented in Table 9.1 through Table 9.3. Exploration work reported in
previous Technical Reports is summarized in this report as is permitted under Instruction 1
of Form 43-101F1, for further detail see item 27, Referencesv:
Work covers all drilling and work on Caspiche and is not limited to the oxide portion of the
deposit under consideration in this document. In the authors opinion the sampling methods
used and sample quality are representative of the ore body and have no significant biases.
For further detail see Item 11, Sample Preparation and Item 12, data Verification of this
Report.
9.1 Exeter (2005 – 2011)
Exeter optioned the Caspiche property in October 2005, and has conducted geological
mapping, geochemical sampling, geophysical surveying, and drilling programs through to
the effective date of this report.
A total of 29,520.7 m from 43 drill holes were completed during the 2009-2010 season, and
included drill holes CSD-041A to CSD-073 (excluding CSD-042, which was drilled during the
2008-2009 drill campaign), re-entry and deepening of CSD-016 and CSD-025, and RC holes
CR-001 to CR-005. Exeter drilling during the 2009-2010 season was designed to raise the
confidence of the existing mineral resource through infill drilling; continue to test the limits of
mineralization, particularly to the southwest; and confirm the grade and thickness of near-
surface legacy drill campaigns through twin drilling. The confirmation drill holes were drilled
using PQ and HQ diameter core and were used to provide additional mineralized oxide
material for metallurgical test work. All 2009-2010 drilling was completed in the Caspiche
Porphyry area; no drilling was completed in the Caspiche Epithermals area. A summary of
2009-2010 drilling is presented in Item 10 of this report.
Other significant exploration work conducted during this period included refinement of the
geological model from recent drilling, and an IP geophysical survey.
The interpretation of drill results from the 2009-2010 drill campaign by Exeter geologists,
and geological work by consultant Dr. Dick Sillitoe in January 2010 resulted in a re-
interpretation of some of the stratigraphic units that which led to a better understanding of
the geological setting at Caspiche. Dr. Sillitoe conducted a complete review of the Caspiche
Porphyry geological model and surrounding exploration potential. Dr. Sillitoe logged several
of the 2009-2010 drill holes and updated several of his cross sections and level plans. All
Exeter geologists participated in discussions and logging, to ensure consistency and
robustness of the model.
A total of 11,352.66 m from 14 drill holes were completed during the 2010-2011 season, and
included drill holes CSD-074 to CSD-081, METT01 to METT03 and SID01 to SID02.
Approximately two-thirds of this program was dedicated to infill drilling at the Caspiche
Porphyry designed to convert high-grade mineralization in the “Inferred” mineral resource
category to “Indicated” or better (holes CSD074 to CSD079). Approximately 15 % of this
program was dedicated to metallurgical drilling at the Caspiche Porphyry for future testwork
(holes METT01 to METT03) and the remainder was dedicated to “regional” drilling exploring
for additional porphyry mineralization in the immediate vicinity of the Caspiche Epithermals

January, 2012
Caspiche Project
Copiapó, Chile
and the Sideral prospect (CSD080, CSD082 and SID01 and SID02). A single regional
exploration hole (CSD081) was drilled approximately 1 km north of the Caspiche Porphyry
prospect. A summary of 2010-2011 drilling is presented in Item 10 of this report.
Additional work completed during the 2010-2011 campaign included extension of the Dipole
Dipole Induced Polarization (DDIP) and Controlled Source Audio-Magnetotelluric Tensor
(CSAMT) geophysical surveys to the east to cover the Sideral prospect. Some of the
CSAMT data was later considered of poor quality and was rerun using a more powerful
system later in 2011. Geological, surficial and stratigraphic mapping to refine geological
models was undertaken and recovery and size testing of a bulk sample of Caspiche oxide
ore from three distinct pits where this material outcrops on the eastern edge of the oxide
orebody was also collected.
All historical drilling and results from the 2009-2010 season and the majority of the 2010-
2011 season was included in the estimation of an updated resource estimate of Caspiche
Porphyry project in August 2011 undertaken by AMEC International. The results of this
estimate are summarized in Item 14 of this report. This resource estimate was used in the
determination of resources and reserves for this PFS study. Where drilling was conducted
within the limits of Caspiche Porphyry after the data cut-off for the August 2011 resource
estimate update, results from these holes have been validated against the interpolated block
values and the lithological and alterations models to ensure robustness and consistency of
these models. No major differences were noted and the additional drilling is interpreted to
support and validate the previous work.
Regional drilling failed to encounter mineralized intrusions or potentially economic porphyry
style mineralization. Drilling in the Caspiche epithermals showed the presence of outer
propylitic alteration below the advanced argillic blanket in the south of this prospect
downgrading the exploration potential in this area. Some anomalous alteration and path
finder minerals for epithermal systems was noted in the Sideral holes and this will be
followed up in 2011/2012.
A summary of the exploration work completed by Exeter is provided in Table 9.1.

January, 2012
Caspiche Project
Copiapó, Chile
Table 9.1: Summary of Exeter Exploration Programs on the Caspiche Property
Year Work Performed

2005 Compiled historic data into a digital Geographic Information System (GIS).
2006 Purchased ASTER mineral model maps and QuickBird high-resolution satellite imagery.
Reprocessed airborne magnetometer survey data using consultants D. Burt of Mendoza,
2006
Argentina and J. Scarbrough of Zonge Chile Limitada.
Reprocessed the Newcrest IP line data using consultant S. Collins of Arctan Consultancy,
2006
Sydney, Australia.
Mapped the entire property and collected 112 rock-chip samples to check assays reported from
2006
previous workers and for PIMA work.
Conducted a Controlled Source Audio-Frequency Magneto-Tellurics (CSAMT) survey with line
2006 orientation perpendicular to the prominent west-northwest structure. A total of 29.7 line-km were
surveyed by Quantec Chile Limitada.
John Keiley, independent consultant (former Chief Geophysicist of Barrick), reviewed the CSAMT
2006
and very low frequency (“VLF”) programs.
Contracted Zonge Chile Limitada to conduct a Pole-Dipole IP survey on 200 m-spaced lines over
2007
the Caspiche Porphyry target and surrounding area.
Contracted Zonge Chile Limitada to conduct a natural source magneto-telluric survey over a large
2007
portion of the Caspiche property on 200 m-spaced lines.
Drilled a total of 3,547.7 m in 14 drill holes on the property between January and the end of
2007 March, 2007. Hidden resistive bodies were targeted using geological mapping and geophysical
interpretation.
2007-2008 Drilled a total of 5,494.87 m in 12 drill holes on the property during the 2007-2008 season.
Drilled a total of 16,158.17 m in 22 drill holes on the property during the 2008-2009 drill
2008-2009
campaign.
Contracted Dick Sillitoe to review and revise geologic interpretations during site visits in February
2009
and May 2009.
2009 Conducted PIMA analysis of 1 in 20 core samples from the 2007-2008 Exeter drill campaign.
Conducted soil gas geochemical orientation program over Caspiche Porphyry to guide
2009
exploration elsewhere on the property.
2009 Submitted 11 core samples for density determination at VIGALAB in Copiapó.
2009 Contracted Zonge Chile Limitada to determine depth to several property targets.
2009 Colorado State University Re-Os dating of Early Diorite Porphyry.

2009 Conducted metallurgical test work of oxide and sulphide composite samples.
2009-2010 Drilled a total of 29,520.7 m in 43 drill holes on the property.
2010 Zonge Chile Limitada IP Survey between the Caspiche Porphyry and Caspiche Epithermal areas.
AMEC International provides an updated resource estimate for the Caspiche project based on all
2010
drilling available within the area of the Caspiche porphyry
Drilling resumes at Caspiche, with a focus on infill drilling at Caspiche Porphyry and regional
2010-2011
drilling at Caspiche Epithermals and Sideral. NB Results not available for this study.
Additional DDIP and CSAMT geophysics completed by Zonge Chile Limitada extending existing
2010-2011
work east over the Sideral prospect.
Mapping and trenching by Exeter geologists further refined surface and bedrock geological
2010-2011
knowledge assisting in construction of local geological models and regional stratigraphic columns
Recovery and size testing of a bulk sample of Caspiche oxide ore from three distinct pits where
2011
this material outcrops on the eastern edge of the oxide ore body.
2010-2011 Drilled a total of 11,352.66 m in 14 drill holes on the property.

January, 2012
Caspiche Project
Copiapó, Chile
9.2 Newcrest (1996 – 1998)

A summary of the exploration work completed by Newcrest is provided in Table 9.2.
Table 9.2: Summary of Newcrest Exploration Programs on the Caspiche Property
Year Work Performed
1996-1997 Geological mapping of Caspiche property area

Contracted Quantec Chile Limitada to conduct a 19.4 line-km IP/Resistivity survey over
1996-1997
portions of the Caspiche property.
1996-1997 Conducted 275 line-km helicopter aeromagnetic survey
1996-1998 Collected 382 rock-chip and 171 soil samples

Completed a total of 2,908 m of RC drilling in 12 holes in the Caspiche Porphyry area,
1997
and 390 m of RC drilling in 2 holes in the Caspiche Epithermals area
Conducted soil orientation survey, including Mobile Metal Ion (MMI) and Enzyme Leach
1997-1998
analysis.
Conducted advanced geologic investigations, including oxygen isotope, fluid inclusion
1997-1998
studies, thin-section petrography, and K/Ar geochronology.
Completed a total of 532 m of RC drilling in 2 holes in the Caspiche Porphyry area, and
1998
3,591 m of RC drilling in 20 holes in the Caspiche Epithermals area
9.3 Anglo (1986 – 1990)

A summary of the exploration work completed by Anglo is provided in Table 9.3.
Table 9.3: Summary of Anglo Exploration Programs on the Caspiche Property
Year Work Performed
1986-1988 Collected 842 rock-chip samples on the Caspiche property
1986-1988 Collected 431 soil samples at Caspiche Porphyry
1988 Completed a total of 568 m of rotary drilling in 12 holes in the Caspiche Porphyry area
1990 Completed a total of 950 m of RC drilling in 6 holes in the Caspiche Porphyry area
v
Explorations reports include:
Richard H. Sillitoe, Geology and Potential of the Caspiche Porphyry Copper-Gold Prospect, Northern Chile,
June 2008.
Richard H. Sillitoe, Updated Geological Model of the Caspiche Porphyry Gold-Copper Prospect, Northern Chile,
May 2009.

January, 2012
Caspiche Project
Copiapó, Chile
Richard H. Sillitoe, Geological Model of the Caspiche Porphyry Copper-Gold Prospect, Northern Chile, February
2009.
Richard H. Sillitoe, Some New Geological Features of the Caspiche Porphyry Gold-Copper Deposit, Northern
Chile, July 2010.
Tolman, J.T. and Perkins, J., 2010, Caspiche Property, Region III, Chile NI 43-101 Technical Report, Prepared
for Exeter Resource Corporation, 13 September 2010.
Tolman, J., Van Kerkvoort, G., and Perkins, J., 2008, Caspiche Project, February 9, 2009, Technical Report,
Region III, Chile, Prepared for Exeter Resource Corporation, 9 February 2009.
Van Kerkvoort, G., Delendatti, G.L.A., and Perkins, J., 2008, Technical Report & Proposed Exploration for
Caspiche Project, Region III, Chile, Prepared for Exeter Resource Corporation, 26 April 2008.

January, 2012
Caspiche Project
Copiapó, Chile
10.0 DRILLING
A total of 75,163.1 m of drilling in 154 drill holes have been completed on the Caspiche
property and adjacent areas by Exeter, Newcrest, and Anglo from 1988 to 2011. Drilling
concentrated in two main areas of the Caspiche property: Caspiche Porphyry and Caspiche
Epithermals.
Of the drill total, 105 holes totalling 62,791.1 m have been drilled at the Caspiche Porphyry
prospect and 34 holes totalling 8,682.9 m have been drilled at the Caspiche Epithermals
prospect. Table 10.1 summaries all Caspiche drilling by prospect, company and drilling type.
Operators have employed air-rotary, RC, and diamond drilling methods on the property.
Drilling at Caspiche Porphyry has been predominantly by diamond drilling methods, whereas
drilling at Caspiche Epithermals has been predominantly by RC drilling methods.
Table 10.1: Summary of Drilling on the Caspiche and Adjacent Properties

RC/Rotary Diamond Core5 RC/Rotary + Core
Prospect Company % Total
# Holes RC (m) # Holes Core (m) Holes Total (m)
Anglo 18 1,518.0 18 1,518.0 2.02%
Caspiche Newcrest 14 3,140.0 14 3,140.0 4.18%

Porphyry Exeter 6 1,290.0 67 56,843.1 73 58,133.1 77.34%
Total 38 5,948.0 67 56,843.1 105 62,791.1 83.54%
Anglo 0.00%
Caspiche Newcrest 20 3,751.0 20 3,751.0 4.99%

Epithermals Exeter 14 4,931.9 14 4,931.9 6.56%
Total 20 3,751.0 14 4,931.9 34 8,682.9 11.55%
Anglo 0.00%
Newcrest 2 230.0 2 230.0 0.31%
Sideral
Exeter 2 1,179.7 2 1,179.7 1.57%
Total 2 230.0 2 1,179.7 4 1,409.7 1.88%
Anglo 0.00%
Newcrest 1 300.0 1 300.0 0.40%
Regional
Exeter 9 1,722.0 1 257.4 10 1,979.4 2.63%
Total 10 2,022.0 1 257.4 11 2,279.4 3.03%
TOTAL 70 11,951.0 84 63,212.1 154 75,163.1 100.00%
10.1 Caspiche Porphyry

A total of 62,791.1 m of drilling in 105 drill holes have been completed at Caspiche Porphyry
(both oxide and sulphide sections). A summary of the drilling campaigns carried out at
Caspiche Porphyry as of the effective date of this report are shown in Table 10.2.
5
RC pre-collar drill lengths are included in the core drilling totals. Drill totals for Exeter campaigns are current as
of the effective date of the Technical Report.

January, 2012
Caspiche Project
Copiapó, Chile
Table 10.2: Summary of Drilling Campaigns at Caspiche Porphyry

Rotary
Rotary RC Drill RC Drill Core Drill Core Drill
Campaign Timeframe Drill Total
Drill Holes Holes Total (m) Holes Total6 (m)
(m)
Anglo 1988-1990 12 568 6 950
Newcrest 1997-1998 14 3,140
Exeter 2006-2011 6 1,290.0 67 56,843.1
TOTAL 12 568 26 5,380 67 56,843.1
Figure 10.1 shows the spatial distribution of the drill holes from the different drill campaigns.
Newcrest’s drill hole CDH-11 is located off Figure 10.1 about 1 km to the south-west and is
considered as a regional exploration hole.
Anglo focused its drilling at Caspiche Porphyry on testing areas of surface high-sulphidation
epithermal gold mineralization. In 1988, Anglo drilled a series of shallow, 50 m rotary drill
holes around the prominent silica-altered hill on the north side of the property.
In 1990, Anglo drilled six RC holes with total depths between 150 m and 200 m to test the
high-sulphidation epithermal system at depth (Figure 10.1). Drill holes were mostly inclined
(between -60° and -70°) and oriented to the northeast and southwest. Anglo intersected
several zones of significant oxide mineralization, including 32 m grading 1.10 g/t gold and
4.3 g/t silver in drill hole SHC-4, and 48 m grading 1.03 g/t gold and 6.1 g/t silver in drill hole
SHC-5.
Confirmation twin drilling of Anglo drilling (two drill holes for 334.40 m) by Exeter in 2009-
2010 revealed a slight high-bias, on average, in the Anglo gold assays; however, the
thickness of the intercepts are approximately equal. Anglo copper assays are, on average,
unbiased when compared to Exeter confirmation drilling intercepts. AMEC reviewed the
results from the twinned holes and concluded that the Exeter drilling confirms the gold and
copper grades and thickness of the Anglo near-surface drill intercepts, and the Anglo assay
data are acceptable for use in mineral resource estimation (Wakefield and Marinho, 2010).
Cube concurs with AMEC’s finding and supports the inclusion of the Anglo drilling in the
current resource estimate.
Newcrest followed-up Anglo’s success at the prominent silica-altered hill with 12 drill holes in
the 1996-1997 exploration season and two drill holes in the 1997-1998 season (Figure
10.1). Newcrest drill holes were mostly inclined (between -60° and -80°) and oriented to the
northeast and south. Drill hole depth ranged between 80 m and 332 m and averaged 230 m
(Figure 10.1). In addition to confirming the presence of near-surface, oxide gold
mineralization, Newcrest intersected several zones of sulphide, porphyry-style, gold-copper
mineralization, including 120 m grading 0.51 g/t gold and 0.27 % copper in drill hole CDH-
2b, and 154 m grading 0.63 g/t gold and 0.24 % copper in drill hole CDH-3.
Exeter drilled two confirmation twin holes of Newcrest drilling in 2009-2010. This drilling plus
two twinned confirmation drill holes drilled during previous Exeter campaigns, show that no
significant bias exists, on average, in the Newcrest gold assays, and that the thickness of
the intercepts are approximately equal. Newcrest copper and silver assays are, on average,
6
RC pre-collar drill lengths are included in the core drilling totals. Drill totals for Exeter campaigns are current as of the
effective date of the Technical Report.

January, 2012
Caspiche Project
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unbiased when compared to Exeter confirmation drilling intercepts. AMEC reviewed the
results from the twinned holes and concluded that the Exeter drilling confirms the gold,
copper, and silver grades and thickness of the Newcrest drill intercepts, and that these data
are acceptable for unrestricted use in mineral resource estimation (Wakefield and Marinho,
2010). Cube concurs with AMEC’s finding and supports the inclusion of the Newcrest drilling
in the current resource estimate.
Exeter first drilled the Caspiche Porphyry area with the last RC drill hole of the 2006-2007
season, CSR-13. Exeter drilling during the 2007-2008 season was aimed at following up the
previous season’s intercept and drilling during the 2008-2009 season was designed to
define the limits of the mineralized system. Exeter drilling during the 2009-2010 season was
designed to raise the confidence of the existing mineral resource through infill drilling;
continue to test the limits of mineralization, particularly to the south and west; and confirm
the grade and thickness of near-surface legacy drill campaigns through twin drilling. Four
RC drill holes were completed on the property outside the Caspiche Porphyry and Caspiche
Epithermals areas in an effort to identify vectors towards additional buried intrusive centres.
Exeter drilling during the 2010-2011 season was designed whereby approximately two-thirds
of this program was dedicated to infill drilling at the Caspiche Porphyry designed to convert
high-grade mineralization in the “Inferred” mineral resource category to “Indicated” or better.
Approximately 15 % of this program was dedicated to metallurgical drilling at the Caspiche
Porphyry for future testwork and the remainder was dedicated to “regional” drilling exploring
for additional porphyry mineralization in the immediate vicinity of the Caspiche Epithermals
and the Sideral prospect.
Exeter drill holes are mostly inclined (between -60° and -80°) and oriented predominantly to
the northeast and southwest. The last drill hole of the 2006-2007 drill campaign, drill hole
CSR-013, intersected 304 m grading 0.90 g/t gold and 0.10 % copper from a downhole
depth of 40 m.
Significant intercepts returned from the 2007-2008 and 2008-2009 drill campaigns include
drill hole CSD-016, which intersected 92 m of oxide mineralization grading 0.41 g/t gold, and
792.45 m of sulphide mineralization grading 0.96 g/t gold and 0.40 % copper, drill hole CSD-
028, which intersected 862.1 m of sulphide mineralization grading 0.54 g/t gold and 0.29 %
copper, and drill hole CSD-032, which intersected 1214 m of sulphide mineralization grading
0.90 g/t gold and 0.33 % copper.
Significant intercepts returned from the 2009-2010 drill campaign include drill hole CSD-043,
which intersected 90 m of oxide mineralization grading 0.38 g/t gold, and 954 m of sulphide
mineralization grading 0.65 g/t gold and 0.27 % copper, and drill hole CSD-048, which
intersected 94 m of oxide mineralization grading 0.49 g/t gold, and 830 m of sulphide
mineralization grading 0.60 g/t gold and 0.24 % copper.
Significant intercepts returned from the 2010-2011 drill campaign include CSD-074, which
intersected 908 m grading 0.60 g/t gold and 0.22 % copper, drill hole CSD-075, which
intersected 572 m grading 0.78 g/t gold and 0.31 % copper with the hole ending in sulphide
mineralization, drill hole CSD-076, which intersected 1,146 m grading 0.38 g/t gold and 0.31
% copper and drill hole CSD-078 which intersected 376 m grading 1.25 g/t gold and 0.40 %
copper.

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Figure 10.1: Drill Hole Location Map for the Caspiche Porphyry Prospect Area
10.2 Caspiche Epithermals

A total of 8,682.90 m of RC and diamond drilling in 34 drill holes have been completed at
Caspiche Epithermals. Drill results from mineralization at Caspiche Epithermals are not
included in the Caspiche mineral resource estimate in this report.
10.3 Exploration Drilling
Exeter completed four RC exploration drill holes during the 2009-2010 drill program. These
four holes were drilled to the northeast of the Caspiche Porphyry area and on the Vega de
Caspiche 1/9 concession to the northwest of Caspiche Porphyry, and were aimed at
discovering subtle geochemical and / or alteration vectors towards additional mineralized
porphyry centres. No significant gold or copper mineralization was encountered in this
drilling.
Exeter completed five “regional” DDH exploration holes during the 2010-2011 drill programs.
The aim of this drilling was to explore for additional porphyry mineralization in the immediate
vicinity of the Caspiche Epithermals and Sideral prospects and approximately 1 km north of
the Caspiche Porphyry prospect. Regional drilling failed to encounter mineralized intrusions
or potentially economic porphyry style mineralization. Drilling in the Caspiche Epithermals
showed the presence of outer propylitic alteration below the advanced argillic blanket in the
south of this prospect downgrading the exploration potential in this area. Some anomalous

January, 2012
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alteration and path finder minerals for epithermal systems was noted in the Sideral holes
and this will be followed up in 2011/2012.
Figure 10.2 shows the location of the exploration drill holes.

January, 2012
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Copiapó, Chile
Figure 10.2: Regional Drill Hole Location Map Showing Location of Exploration Drill Holes (2009-2011)
CSD081
SID01
SID02
CSD082
CSD080

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10.4 Drilling Procedures and Conditions

10.4.1 Exeter
Exeter employs industry-standard RC and diamond drilling procedures. During the 2007-
2008 Exeter drill campaign, diamond drilling was performed by Major Drilling Chile (Major)
from La Serena, Chile. Drilling was supervised by experienced drilling supervisors, and used
skid-mounted diamond drill rigs: a Major 50 and a Boyles 20. All core drilling employed triple
tube, HQ3 (6.11 cm) diameter tools, reducing to NQ3 (4.50 cm) diameter when the rig
reached the depth capacity of the HQ3 equipment. The majority of core holes were drilled
using the Ballmark orientation equipment to provide accurate core orientations. RC drilling
was performed by Soletanche Bachy Chile (Bachy) from Santiago, Chile, using an Ingersoll
Rand TH75 E drill rig with an additional compressor and 5.125 in. tricone bits.
During the 2008-2009 drill campaign, diamond drilling was performed by Major using a
Major 50 diamond drill rig and UDR1000 and UDR200 RC rigs. Diamond drilling was
performed using HQ (6.35 cm) and NQ (4.76 cm) diameter tools. Drilling during the 2009-
2010 and 2010-2011 drill campaigns continued with Major and Boart Longyear drill rigs
using HQ and NQ diameter tools. The metallurgical drill holes used PQ (8.50 cm) and HQ
diameter tools to provide larger diameter core for metallurgical testwork.
10.4.2 Newcrest
Newcrest RC drilling was performed by Bachy S.A. in 1997, and Ausdrill Chile Ltda. in 1998.
Both drill programs used 5.5 in diameter down-the-hole hammer bits. Information available
to Exeter regarding the drilling procedures employed by Newcrest is incomplete. AMEC
considers it reasonable to believe that Newcrest used industry-standard RC drilling
procedures during its drill campaigns at Caspiche.
Confirmation drilling by Exeter has confirmed the accuracy of the Newcrest mineralized
intercepts, allowing them to be used in mineral resource estimation.
10.5 Logging
Exeter exploration staff log drill core at Exeter’s facility in Copiapó. Logging includes:
lithology, pervasive and vein selvage alteration, veining description, classification and
frequency measurements, oxidation and sulphide content. Detailed geotechnical logging is
also performed and includes logging of core recovery, rock quality designation (RQD),
fracture frequency, and rock mass rating (RMR) data. Point load testing is also carried out
and calibrated against uniaxial compressive strength (UCS) measurements from external
laboratories. The data are captured in palm-top computers using direct manual entry into
Microsoft Excel spreadsheets.
RC drill cuttings are logged at the drill site in 1 m intervals. The paper logging sheet includes
similar fields to those used for core logging, but also includes a column for sample moisture
content. A spoonful of the washed chips is placed in the chip tray as a record of the logged
interval.
Geological logs from Anglo drill holes are not available to Exeter.

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10.6 Surveys
Exeter drill-collar locations are first estimated by Exeter personnel using a hand-held GPS,
together with the distance from the nearest surveyed drill hole. Collar locations are then
surveyed with a Leica TC 600 Total Station instrument by Mr. Luis Jorquera Galaz from
Copiapó, Chile, a professional surveyor. Mr. Galaz has surveyed all drill hole collars on the
property.
Downhole surveys for diamond drill holes are conducted by the drill contractor every 50 m
down-hole using a Reflex EZ Shot digital down-hole camera. RC drill holes are surveyed
down-hole within the drill steel by Exeter to determine the dip deviation. Azimuth data from
the RC surveys are discarded.
In Cube’s opinion, the accuracy of the collar and down-hole surveys is adequate to support
mineral resource estimation procedures. AMEC also reviewed down hole surveys for all
drilling used in the resource estimate and reached the same conclusion.
10.7 Drilling Results
The Caspiche property has been drilled semi-consistently, in terms of drill spacing and
depth. Drilling for the last three campaigns has been completed on a grid with an
approximate drill collar spacing in the Caspiche Porphyry area based on a 200 m by 200 m
staggered grid (with a central drill hole) meaning at any point in the grid a collar should be
located within 100 m. In practice, hole spacing is approximately 100 m between drill lines
with closed fences of holes approximately 200 m apart. Dip and azimuth can vary between
different sections. The average depth of drilling at Caspiche Porphyry is 413 m below
surface. This average includes early Anglo drilling that averaged 84 m in total depth, and
Newcrest drilling that averaged 229 m in total depth. Average depth of drilling by Exeter at
Caspiche Porphyry is 757 m, and the deepest hole on the Property is 1497.1 m.
A list of significant intercepts for the Caspiche Porphyry areas is provided in Table 10.3.
Intercepts are cut at the oxide / sulphide contact and reported separately to show the
relative thickness and mineralization within these two distinct zones.

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Table 10.3: Significant Intercepts for the Caspiche Porphyry Prospect Area
Drill Hole From (m) To (m) Interval (m) Au (g/t) Cu (%)

SHC-1 2 50 48 0.05
SHC-2 2 50 48 0.27
SHC-3 2 50 48 0.13
SHC-4 2 32 30 1.1
SHC-5 2 50 48 1.03
SHC-6 2 50 48 0.32
SHC-7 2 50 48 0.48
SHC-8 2 50 48 0.29
SHC-9 2 50 48 0.09
SHC-10 2 50 48 0.73
SHC-11 2 50 48 0.28
SHC-12 2 46 44 0.32
SPC-01 26 36 10 0.7
SPC-02 132 142 10 1.09
SPC-04 12 26 14 0.56
SPC05 68 102 34 0.63
SPC06 52 62 8 1.2
CDH02b 64 134 70 0.4 0.02
CDH02b 134 154 20 0.93 0.58

CDH02b 154 274 120 0.51 0.27
CDH02b 234 270 36 0.74 0.25
CDH03 28 104 76 0.47 0.01
CDH03 104 172 68 0.41 0.18
CDH03 172 326 154 0.63 0.24
CDH03 232 326 94 0.73 0.23

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(continuation)
CDH05 0 56 56 1.03 0.02
CDH05 56 126 70 0.52 0.01
CDH05 126 200 74 0.5 0.22
CDH12 40 50 10 0.54 <0.01
CDH12 50 64 14 0.38 <0.01
CDH12 98 144 46 0.55 0.22
CSR013 40 344 304 0.9 0.1
CSD014 0 148 148 0.57 0.02
CSD014 148 740.67 592.67 0.44 0.25
CSD015 57.95 114 56.05 0.35 0.02
CSD015 114 1,001.35 887.35 0.62 0.27
CSD016 73 165 92 0.41 0.01
CSD016 165 957.45 792.45 0.96 0.4

CSR019 32 154 122 0.3 <.01
CSR019 154 240 86 0.2 0.08
CSR020 6 126 120 1.16 0.01
CSR020 126 250 124 0.45 0.08
CSR021 10 152 142 0.31 0.01
CSR022 22 150 128 0.86 0.01
CSR022 150 231 81 0.57 0.16
CSD023 0 102 102 0.65 0.01
CSD023 102 1,160 1,058 0.7 0.35
CSD024 0 209 209 0.29 0.02
CSD024 209 766.25 557.25 0.36 0.15

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(continuation)
CSD025 44 212 168 0.64 0.01
CSD025 212 432 220 1.03 0.34
CSD025 778 977 199 0.5 0.19
CSD026 68 135 67 0.19 0.01
CSD026 135 208.95 73.95 0.32 0.13
CSD027 0 150 150 1.09 0.01
CSD027 150 714 554 0.4 0.15
CSD028 208 1,070.10 862.1 0.54 0.29
CSD029 66 138 72 0.52 0.01
CSD029 138 719.1 581.1 0.5 0.19
CSD030 94 138 44 0.17 0.01
CSD030 138 954.55 816.55 0.67 0.22
CSD031 44 166 122 0.22 0.02

CSD031 166 628.1 462.1 0.35 0.15
CSD032 95 1,309 1,214 0.9 0.33
CSD033 34 164 130 0.47 0.01
CSD033 164 950 786 0.33 0.13
CSD034 120 605 485 0.25 0.07
CSD035 0 120 120 0.69 0.02
CSD035 120 1,025.70 905.7 0.87 0.26
CSD036a 161 944 783 0.65 0.21
CSD037 434 1142 708 0.5 0.22
CSD038 15 220 205 0.16 0.02
CSD038 220 560.4 340.4 0.11 0.03

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(continuation)
CSD039a 66 126 60 0.22 0.01
CSD039a 126 1,002 876 0.75 0.29
CSD041a 572 1304 734 0.26 0.18
CSD042 400 457.5 57.5 0.45 0.04
CSD043 40 130 90 0.38 0.02
CSD043 130 1084 954 0.65 0.27
CSD044 244 544 300 0.5 0.08
CSD045 0 146 146 0.46 0.01
CSD045 146 170 24 0.44 0.42
CSD046 58 128 70 0.38 0.01
CSD046 128 171.7 43.7 0.91 0.32
CSD047 252 965 713 0.51 0.15
CSD048 60 154 94 0.49 0.01

CSD048 154 984 830 0.6 0.24
CSD049 0 126 126 0.6 0.01
CSD049 126 150.7 24.7 0.33 0.07
CSD050 0 28 28 0.46 0.01
CSD051 30 154 148 0.73 0.01
CSD051 178 734 556 0.45 0.13
CSD052 0 60 60 0.46 0.01
CSD052 60 122.5 62.5 0.42 0.1
CSD054 24 126 102 0.63 0.01
CSD054 126 178 52 0.76 0.23
CSD056 134 368 234 0.3 0.08

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(continuation)
CSD056 508 676 168 0.25 0.12
CSD057 0 120 120 0.56 0.01
CSD057 120 172.7 52.7 0.35 0.12
CSD058 56 118 62 0.26 0.01
CSD058 118 1170 1052 0.5 0.31
CSD059 84 116 32 0.88 0.01
CSD059 116 540 424 0.42 0.1
CSD060 59 129 70 0.44 0.01
CSD061 102 134 32 0.19 0.01
CSD061 134 984 850 0.76 0.17
CSD060 129 709 580 0.47 0.2
CSD062 134 984 850 0.76 0.17
CSD063 404 1,272 868 0.6 0.33

CSD064 0 154 154 0.74 0.01
CSD064 154 904 750 0.35 0.13
CSD065 220 594 374 0.4 0.03
CSD066 310 1,181 871 0.36 0.2
CSD067 81 131 50 0.47 0.01
CSD067 131 807 676 0.55 0.11
CSD068 1,020 1,272 252 0.13 0.18
CSD069 160 700 540 0.84 0.32
CSD070 578 1225 647 0.31 0.17
CSD071 211 685 474 0.45 0.22
CSD072 27.4 68 40.6 0.92 0.01

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(continuation)
CSD072 260 432 172 0.64 0.18
CSD073 21 54 33 0.21 0.01
CSD073 86 741 655 0.24 0.07
CSD074 120 134 14 0.54 0.02
CSD074 204 1,112 908 0.60 0.22
CSD075 47 90 43 0.40 0.01
CSD075 90 662 572 0.78 0.31
CSD076 34 116 82 0.31 0.01
CSD076 116 1,262 1,146 0.38 0.31
CSD077 72 84 12 1.19 0.01
CSD077 528 1,078.8 550.8 0.36 0.23
CSD078 250 626 376 1.25 0.40
CSD079 584 1,171 587 0.43 0.29

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10.8 True Thickness of Mineralization

Mineralized zones at Caspiche are irregular in shape and orientation, and true thickness is
variable. Geological modeling and mineral resource estimation procedures take into account
the intercept angles of drilling versus the geometry of mineralization.
10.9 Orientation of Mineralization
Mineralization at Caspiche Porphyry generally trends northwest-southeast and is most
continuous vertically. Mineralization at Caspiche Epithermals generally trends east-west.
Mineralization at the MacNeill zone adjacent to the Caspiche Porphyry is controlled by the
flared edge of the late diatreme breccias and is strongest directly under this control at angles
of 30 degrees or less where fluids are interpreted to have ponded and been trapped when
they were unable rise due to the impermeable cap rock.

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11.0 SAMPLE PREPARATION, ANALYSIS AND SECURITY

11.1 Sample Procedures and Protocols
The following description of the sampling methodology was modified from Van Kerkvoort et
al. (2008). Surface sampling and drill sampling methodology through the 2007-2008 field
season was described in detail in Van Kerkvoort et al. (2008) and is only summarized in this
report.
11.1.1 Surface Sampling
No description of the sampling protocols for Anglo and Newcrest surface sampling are
available to Exeter. Anglo conducted an extensive rock-chip sampling campaign along road
cuts and at bedrock exposures throughout the property area and collected soil samples on a
grid in the Caspiche Porphyry area. Newcrest also collected rock-chip and soil samples
during its tenure with the Caspiche property.
Exeter collected rock-chip samples during the 2005-2006 field season to confirm previously
reported values and to gain a better understanding of the geological and mineralization
environment. Outcrop, channel, and character samples were collected as part of this
programme. A soil orientation programme was conducted by Exeter during the 2008-2009
field season.
The results from these surface sampling programmes are not used in the mineral resource
estimate.
11.1.2 Drill Sampling
11.1.2.1 Exeter
Reverse Circulation Sampling
Reverse Circulation (RC) sampling by Exeter has been consistently applied throughout the
Exeter drill campaigns. Exeter has documented their RC sampling procedure in a document,
written in Spanish, which is used to train drill sampling staff.
RC drill cuttings are sampled using a tricone or hammer bit via a cyclone at 1 m intervals.
Sample material is collected at the drill rig in a large plastic bag, weighed, labelled and then
transported to the Caspiche camp, located about 8 km from Caspiche Porphyry. At
Caspiche camp, the entire sample is manually split to one-eighth and seven-eighth fractions
using a single pass through a triple stage riffle splitter. The one-eighth split is then weighed
and set aside for compositing, while the seven-eighth reject sample is bagged. The one-
eighth splits from each consecutive 1 m samples are combined to form the 2 m field
composite for assaying.
The drill-bit diameter is recorded for each drill hole, which together with the sample weight,
assists in the calculation of RC sample recovery. Average recovery from the 2007-2008 RC
drilling campaign was 84.3 %. RC drilling during the 2008-2009 and 2009-2010 drill
campaigns has been limited to core precollar drilling through post-mineral cover rocks and
non-mineralized bedrock.

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Diamond Drilling Sampling

Core sampling by Exeter has also been consistently applied throughout the Exeter drill
campaigns. Exeter has documented their diamond-drill sampling procedure in a document,
written in Spanish, which is used to train drill sampling staff.
Diamond drilling by Exeter at Caspiche has employed HQ (6.35 cm), HQ3 (6.11 cm), NQ
(4.76 cm), and NQ3 (4.50 cm) diameter core tools. PQ (8.50 cm) diameter core was
employed during the confirmation / metallurgical drill programme of the 2009-2010 drill
campaign.
HQ3 and NQ3 triple-tube core tools are used with oriented core. The triple-tube splits are
removed from the core barrel and rolled into a spare split, where Exeter’s trained field
technicians fit the core together, measure the length of the recovered sample and continue
the oriented line. The angle between the pin and ball mark is transferred to the core from the
ring using specifically-designed protractors and marked as a red pencil line. The oriented
core is then placed in a wooden core tray, where the end of the run is marked with a core
block marked with hole depth. There is always a trained field technician at the rig to perform
core orientation and to record the preliminary core run recovery.
Exeter personnel transport the drill core from the drill site to Exeter’s offices in Copiapó
where the core is logged and photographed by digital camera. To maintain the integrity of
the core, the boxes are packed and fastened with belts in the back of the trucks.
Following logging and photographing, core is sawn in half in uniform 2 m intervals using a
diamond saw. One half of the core interval is bagged for assay, and the other half is stored
for future reference. Core samples for assay are placed in marked plastic bags, sealed and
transported to the assay laboratory by Exeter personnel.
PQ diameter core from the confirmation / metallurgical drill programme in 2009-2010 was
split differently than the core from the routine drilling programmes. To preserve as much of
the core as possible for metallurgical testing, the core was divided so that the portion
retained for assaying was approximately one-quarter NQ core. In practice, a 1.7 cm split of
the 8.5 cm core was used for assaying, and the remainder was retained in the core box for
use in later metallurgical testwork.
Average core recovery for the 2007-2008, 2008-2009, 2009-2010 and 2010-2011 drill
programmes was approximately 98 %.
11.1.2.2 Newcrest
All Newcrest drilling at Caspiche was completed using RC drilling methods. All samples
were collected in 2 m intervals. Exeter obtained Newcrest project reports in 2009 that
discuss drill procedures and sample recovery for the 1996-1997 Newcrest drilling campaign.
Newcrest reports that reasonable sampling procedures and good sample recoveries were
obtained from the drill contractor. Newcrest used industry-standard practices regarding drill-
sampling procedures.
11.1.2.3 Anglo
Anglo drilling was conducted using air-rotary and RC methods. All samples were collected in
2 m intervals. Details of drilling practices employed by Anglo are not available to Exeter. It is
reasonable to assume that Anglo used industry-standard practices regarding drill-sampling
procedures. Air-rotary drilling is typically only used for reconnaissance exploration drilling,

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because the sampling method is susceptible to down-hole contamination from mineralized

intercepts.
11.2 Sample Preparation and Analysis
11.2.1 Surface Samples
Newcrest rock samples were analyzed by ALS Geolab in Copiapó, Chile. Gold was assayed
using standard 50 g fire assay with an atomic absorption finish, and other elements were
determined by acid digestion and inductively coupled plasma (ICP) finish. The Exeter rock
samples were analyzed at ALS Chemex in La Serena, Chile for gold by standard fire assay
of a 50 g sub-sample and atomic absorption finish, and additional elements by ICP. ALS
Chemex is an independent ISO 9001:2000 registered assay laboratory. External quality
control samples were not inserted consistently in surface sample batches. Surface samples
are not included in the Caspiche mineral resource database and were not used for mineral
resource estimation purposes.
11.2.2 Drill Samples

11.2.2.1 Exeter
2006–2007 Drill Campaign
All samples from the 2006-2007 Exeter drill campaign were assayed by ACME Laboratories
(ACME) in Santiago, Chile. ACME is an independent ISO 9001:2000 registered assay
laboratory. Samples were transported from the project site to Santiago using Estafeta, a
contract transport group, and no sample loss was recorded. At ACME, samples were
prepared by crushing 1 kg to 70 % passing 2 mm (10 mesh ASTM-E11), splitting 250 g and
pulverizing it to 95 % passing 0.106 mm (150 mesh Tyler) (ACME code R150). Gold was
determined by fire assay on a 50 g charge and atomic absorption finish (ACME code AuG6).
Silver was determined by aqua regia digestion and atomic absorption finish (ACME code
ICP-1D). Assays returning greater than 300 ppm silver were re-assayed by fire assay and
gravimetric finish. Check assays of select intervals were completed at ALS Chemex in La
Serena, Chile.
External standard reference materials (SRMs), coarse blanks, pulp duplicates, and check
assays were used to control assay quality. A total of 160 quality control samples were
inserted into the total sample stream of 1,784 samples submitted to ACME, for an insertion
rate of 8.3 %.
Exeter used four SRMs from Geostats Pty. Ltd. (Geostats), of Perth, Australia, to control
assay accuracy. The recommended values for these SRMs range between 0.82 g/t and 2.14
g/t gold and acceptably match the expected range of gold concentrations at Caspiche. SRM
results for the 2006-2007 drill campaign were reviewed and found that the assay accuracy
for ACME gold assays is acceptable; consistent with the conclusions of AMEC in the
previous NI 43-101 report from Wakefield and Marinho, 2010. The SRMs were not certified
for copper and thus the copper values were not monitored for assay accuracy.
Of 80 blanks assayed during the campaign, only 3 returned values greater than 0.03 g/t
gold; six times the lower detection limit for gold, and the maximum value was 0.07 g/t gold.
A total of 53 samples were assayed in duplicate by ACME. Pulp duplicate sample results
have been reviewed and the ACME assay precision for gold is acceptable; consistent with

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the conclusions of AMEC in the previous NI 43-101 report from Wakefield and Marinho,
2010. Ninety percent of the pulp duplicate pairs have absolute relative differences less than
30 %.
A total of 54 samples were assayed at ACME and ALS Chemex. No significant bias exists
between the ACME and ALS Chemex results for gold.
The ACME gold assays from the 2006-2007 drill campaign are adequately accurate and
precise and are acceptable for purposes of mineral resource estimation; consistent with the
conclusions of AMEC in the previous NI 43-101 report from Wakefield and Marinho, 2010.
2007-2008 Drill Campaign
All samples from the 2007-2008 drilling programme were prepared and assayed by ALS
Chemex in La Serena, Chile. RC samples were prepared as shown in Table 11.1.
Table 11.1: RC Sample Preparation Procedure for 2007-2008 Exeter Drill Samples
Step Procedure
1 Sample receipt and verification
2 Dry entire sample at 110° C
3 Jaw-crush entire sample to 70 % passing 10 mesh
4 Homogenize and riffle split 250 g of -10 mesh material
5 Pulverize 250 g subsample to 85 % passing 200 mesh
The core sample preparation procedure was refined several times during the programme to
provide coarse material for metallurgical samples. The first 676 m of core hole CSD-014 was
prepared and assayed with the same procedures as used for RC samples. However, the
procedure was changed for the last 65 m of CSD-014 from 676 to 740.67 (total depth), and
for holes CSD-015, and CSD-016, to that shown in Table 11.2.
Table 11.2: Refined DD Sample Preparation Procedure for Exeter Drill Samples
Step Procedure
3 Jaw-crush entire sample to 70 % passing 6 mm
4 Homogenize and riffle split 1 kg of -6 mm material
5 Pulverize 1 kg subsample to 85 % passing 200 mesh
6 Riffle split 250 g subsample of -200 mesh material for analysis
The sample preparation procedure was refined again for drill holes CSD-018 through CSD-
026 as shown in Table 11.3.

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Table 11.3: Further Refined DD Sample Preparation Procedure for Exeter Drill
Samples
Step Procedure
3 Jaw-crush entire sample to 70 % passing 9.5 mm
4 Homogenize and riffle split 1 kg of -9.5 mm material
5 Pulverize 1 kg subsample to 85 % passing 200 mesh
6 Riffle split 250 g subsample of -200 mesh material for analysis
All RC and core samples were assayed for gold by fire assay of a 50 g sub-sample and an
atomic absorption finish (ALS Chemex code Au-AA24). Samples reporting greater than 1 g/t
gold were re-assayed to provide a check on the original assay. Copper and silver were
assayed by four acid (total) digestion and atomic absorption finish (ALS Chemex codes Cu-
AA62 and Ag-AA62). Fifty one additional elements, including copper and molybdenum, were
determined on all samples using aqua-regia digestion and ICP-MS (ALS Chemex code ME-
MS41).
SRMs, coarse blanks, and duplicates were used to control assay quality. SRMs, blanks, and
coarse duplicates were inserted at a rate of 1 in 20 for core samples, and 1 in 30 for RC
samples.
Exeter used SRMs from Geostats to control assay accuracy. The recommended values for
these SRMs range between 0.6 g/t and 0.8 g/t gold and acceptably match the expected
range of gold concentrations at Caspiche. SRM results from the 2007-2008 drill campaign
show accuracy for gold to be acceptable. Of 65 SRMs assayed, 86 % were within
acceptable limits, and there was no significant bias in the results.
A review of pulp duplicate assays found that ALS Chemex precision for gold is acceptable.
Of 40 pairs of pulp duplicates assayed, greater than 97.5 % were within 10 % absolute
relative difference.
Of 66 blanks assayed, all returned gold values less than three times the lower detection limit
of 0.005 g/t.
Results from the ALS Chemex gold assays from the 2007-2008 drill campaign are
adequately accurate and precise and are acceptable for use in mineral resource estimation.
Sample preparation and assaying for the 2008-2009 drill campaign remained much the
same as it was at the end of the 2007-2008 drill campaign. Sample preparation was
performed as shown in Table 11.3. Assaying for gold was by fire assay of a 50 g sub-sample
and an atomic absorption finish (ALS Chemex code Au-AA24). Copper was assayed by four
acid (total) digestion and atomic absorption finish (ALS Chemex codes Cu-AA62). Fifty one
additional elements, including copper and molybdenum, were assayed on all samples using
aqua-regia digestion and ICP-MS (ALS Chemex code ME-MS41). Silver was not assayed by
total digestion during this campaign, but it is included in the ME-MS41 multi-element aqua-

January, 2012
Caspiche Project
Copiapó, Chile
regia package. Samples reporting greater than 2 g/t gold, instead of 1 g/t in 2007-2008,
were re-assayed to provide a check on the original assay.
SRMs, coarse blanks, duplicates, and check assays were used to control assay quality and
were inserted at a rate of 1 in 40 samples.
A review of the 115 SRM results from ALS Chemex during the 2008-2009 drill campaign
found the assay accuracy for gold to be acceptable. Recommended values for the Geostats
SRMs ranged between 0.24 g/t and 1.48 g/t gold and are appropriate for the range of gold
values expected at Caspiche. Several SRMs returned unacceptably low values during the
campaign, but the affected batches were re-assayed with acceptable results and the assays
replaced in the Exeter database. Copper and silver SRMs were not included in the 2008-
2009 drill programme, but were acquired by Exeter for use in the 2009-2010 drill
programme.
A total of 51 coarse reject samples from drill holes completed between November 2008 and
February 2009 were submitted by Exeter to Geoanalitica in Copiapó, Chile, for check assay.
Geoanalitica is an independent ISO 9001:2000 registered assay laboratory. Gold and
copper results from the 51 check assay samples were reviewed and found no significant
bias exists between the ALS Chemex and Geoanalitica results for gold and copper. Control
samples submitted with the check assay samples showed that assay accuracy for gold and
copper at Geoanalitica is acceptable.
A total of 91 pulps from sample intervals from the 2008-2009 drill campaign were submitted
by Exeter to ACME for analysis of gold, copper, and silver as an extra check on the
accuracy of the ALS assays. Two blanks and two gold SRMs were included with the batch
and reported acceptable accuracy for gold, and no significant carry-over contamination.
Copper and silver SRMs were not included with the check assay batch. The check assay
results show that the ALS gold assays are biased low. This finding is in agreement with the
findings from the SRM results. The results of the copper and silver checks show that the
ALS copper and silver assays are acceptably accurate.
All 64 blank samples reported gold concentrations below two times the lower detection limit
of 0.01 g/t gold, and thus there is no evidence of significant carry-over contamination in the
ALS Chemex gold assays. All blank samples reported copper values were below 0.01 %,
and silver values below 0.3 g/t, and thus there is no evidence of significant carry-over
contamination in the ALS Chemex copper and silver assays.
A total of 68 pulp samples were resubmitted to ALS Chemex for duplicate analysis at the
end of the 2008-2009 drill programme. Duplicate data was reviewed and the precision for
gold, copper, and silver was found to be acceptable.
The ALS Chemex gold and copper assays from the 2008-2009 drill campaign are within
normal industry standards for accuracy and precision, and are acceptable for use in mineral
resource estimation.
Drill hole samples collected during the 2009-2010 drill campaign were submitted to ACME
Analytical Laboratories (Chile) S.A. in Santiago, Chile, for assay. At ACME, samples were
prepared by crushing 500 g to 70 % passing 2 mm (10 mesh ASTM-E11), splitting 250 g
and pulverizing it to 95 % passing 0.075 mm (200 mesh Tyler) (ACME code R200-500).
Gold was determined by fire assay on a 30 g charge and atomic absorption finish (ACME

January, 2012
Caspiche Project
Copiapó, Chile
code AuG6). Copper and silver plus an additional 31 elements were determined by aqua
regia digestion and an ICP finish (ACME code ICP-1D). Samples returning greater than 0.2
% copper were redigested using a total, four-acid digestion and atomic absorption finish
(ACME code 8TD). Samples returning greater than 300 g/t silver were re-assayed by fire
assay and gravimetric finish.
SRMs, coarse blanks, duplicates, and check assays are used to control assay quality and
are inserted at a nominal rate of 1 in 25 samples.
Exeter submitted a total of 404 gold SRMs and 28 copper and silver SRMs, 3.0 % insertion
rate, with the project samples to control assay accuracy. Recommended values for the
Geostats gold SRMs ranged between 0.2 g/t and 2.0 g/t gold and are appropriate for the
range of gold values expected at Caspiche. No significant bias was observed in the SRM
results for gold. Over 96 % of the gold and base metal standards returned results within two
standard deviations.
Copper and silver SRMs were acquired for this campaign, but were not inserted into assay
batches during the early part of the programme. Beginning in February 2010, assay batches
included a mixture of silver and copper SRMs, together with the gold SRMs. SRMs
employed by Exeter range between 1.3 g/t and 26.8 g/t silver and 0.15 % and 0.24 %
copper, and are appropriate for the range of silver and copper values expected at Caspiche.
Gold SRMs, while not certified for silver, have historically returned reasonably precise
results in an appropriate grade range between 0.3 g/t to 6.0 g/t for silver grades expected at
Caspiche. Exeter has produced a number of SRMs from Caspiche project material to control
accuracy in future drill campaigns.
Exeter selected 338 representative samples from mineralized intercepts from the 2009/2010
drill campaign and submitted them to ALS La Serena Laboratory, with appropriate blanks
and standards, for check assay. Results showed no significant problems with precision or
sample integrity.
Blanks were submitted at the start of each batch to test for cross-batch contamination and
also after suspect high-grade zones such as auriferous ledges or massive sulphide veins. Of
154 blanks submitted, a 1.1 % insertion rate, over 98 % of the assays for gold were less
than two times the lower detection limit value for the method. Copper assays for blank
samples were all below 20 ppm (0.002 %), except for one value of 60 ppm (0.006 %).
Results show there is no significant contamination of gold, silver, or copper assays due to
sample preparation at ACME.
Coarse reject material from 386 intervals from the 2009-2010 drill campaign were selected
and re-assayed at ACME to determine assay precision for gold, copper, and silver. Results
for gold show that, 95 % of the samples have (RPD) levels below 20 %. Results for
copper and silver show that 90 % and 99 % of duplicates respectively have RPD levels
below 20 %. General industry practice considers coarse duplicates having RPD less than 20
% to be acceptable.
Exeter reviews quality control results of each batch before loading the assay into the mineral
resource database. Additionally, Exeter reviews long-range trends of control sample results
and modify the QA/QC protocol as necessary. AMEC reviewed the 2009-2010 control
results with Exeter prior to calculation of the updated resource estimate and concurred that
Exeter’s control of data quality and evaluation of the results to be effective and the data was
acceptable for use in mineral resource estimation.

January, 2012
Caspiche Project
Copiapó, Chile

Sample preparation and analysis was the same as for the 2009-2010 drill campaign. Drill
hole samples collected during the 2009-2010 drill campaign were submitted to ACME
Analytical Laboratories (Chile) S.A. in Santiago, Chile, for assay. At ACME, samples were
prepared by crushing 500 g to 70 % passing 2 mm (10 mesh ASTM-E11), splitting 250 g
and pulverizing it to 95 % passing 0.075 mm (200 mesh Tyler) (ACME code R200-500).
Gold was determined by fire assay on a 30 g charge and atomic absorption finish (ACME
code AuG6). Copper and silver plus an additional 31 elements were determined by aqua
regia digestion and an ICP finish (ACME code ICP-1D). Samples returning greater than 0.2
% copper were redigested using a total, four-acid digestion and atomic absorption finish
(ACME code 8TD). Samples returning greater than 300 g/t silver were re-assayed by fire
assay and gravimetric finish.
SRMs, coarse blanks, duplicates, and check assays are used to control assay quality and
are inserted at a nominal rate of 1 in 25 samples.
All SRMs submitted during the 2010-2011 drill campaign have been produced and
characterized from representative Caspiche mineralized material. All SRMs produced from
Caspiche mineralized material have been characterized for gold, copper and silver.
Exeter submitted a total of 142 gold SRMs and 142 copper and silver SRMs, 3.0 % insertion
rate, with the project samples to control assay accuracy. Recommended values for the
Caspiche gold, copper and silver SRMs ranged between 0.28 g/t and 0.69 g/t gold, between
90 ppm (0.009 %) and 2252 ppm (0.2252 %) copper and 0.70 g/t and 1.00 g/t silver. These
values and are appropriate for the range of gold, copper and silver values expected at
Caspiche. No significant bias was observed in the SRM results for gold. Approximately 96 %
of the gold SRMs and 91 % of copper SRMs returned results within two standard deviations
of the expected values. Greater than 99 % of silver SRMs returned results within two
standard deviations of the expected values however the majority of results indicated a slight
low bias.
Blanks were submitted at the start of each batch to test for cross-batch contamination and
also after suspect high-grade zones such as auriferous ledges or massive sulphide veins. Of
63 blanks submitted, a 1.4 % insertion rate, over 98.4 % of the assays for gold returned
values less than 0.02 g/t gold and a maximum value of 0.05 g/t gold. All copper assays for
blank samples returned values less than 20 ppm (0.002 %). Results show there is no
significant contamination of gold, silver, or copper assays due to sample preparation at
ACME.
Exeter reviews quality control results of each batch before loading the assay into the mineral
resource database. Additionally, Exeter review long-range trends of control sample results
and modify the QA/QC protocol as necessary. AMEC reviewed the 2010-2011 control
results with Exeter prior to calculation of the updated resource estimate and agreed that
Exeter’s control of data quality and evaluation of the results was effective and the data was
acceptable for use in mineral resource estimation. Cube Consulting has undertaken an
independent review of SRM control charts for all Exeter data as at the effective date of this
report and believes that the current database provides an accurate and robust
representation of the Caspiche project and is appropriate for use in mineral resource
estimation. Cube Consulting is an independent Australian based consulting firm specializing
in mining and mineral resource services.

January, 2012
Caspiche Project
Copiapó, Chile
All SRM control charts for the 2010-2011 drilling campaign for gold, copper and are shown
in Figure 11.1 to Figure 11.21.
Figure 11.1: SRM Control Chart OM00 (2010-2011)- Gold (Source: Cube Consulting,
2011)
Standard Plot - STD_OM00
Laboratory = ACME, Analyte = Au (g/t)
(ppm), Method = Fire Assay 30gm
0.55
0.5
0.45
0.4
0.35
0.3
10000404
10000404
10000433
11000296
11000327
11000327
11000574
11000664
11000664
Consulting, 2011)
Laboratory = ACME, Analyte = Cu (ppm), Method = Aqua Regia ICP
120.3
110.3
100.3
90.3
80.3
70.3
60.3
10000404
10000404
10000433
11000296
11000327
11000327
11000574
11000664
11000664

January, 2012
Caspiche Project
Copiapó, Chile
Figure 11.3: SRM Control Chart OM00 (2010-2011) - Silver (Source: Cube Consulting,
2011)
Laboratory = ACME, Analyte = Ag (ppm),
(g/t) Method = Aqua Regia ICP
1.8
1.6
1.4
1.2
0.8
0.6
0.4
0.2
0
4 4 3 6 7 7 4 4 4
0 0 3 9 2 2 7 6 6
4 4 4 2 3 3 5 6 6
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1
Figure 11.4: SRM Control Chart OM10(2010-2011) - Gold (Source: Cube Consulting,
2011)
0.5
0.45
0.4
0.35
0.3
0.25
10000404
10000404
10000433
11000016
11000091
11000296
11000296
11000327
11000327
11000327
11000574
11000664
11000664

January, 2012
Caspiche Project
Copiapó, Chile
Consulting, 2011)
110.25
100.25
90.25
80.25
70.25
60.25
50.25
40.25
10000404
10000404
10000433
11000016
11000091
11000296
11000296
11000327
11000327
11000327
11000574
11000664
11000664
Figure 11.6: SRM Control Chart OM10 (2010-2011) - Silver (Source: Cube Consulting,
2011)
Laboratory = ACME, Analyte = Ag (g/t)
(ppm), Method = Aqua Regia ICP
1.6
1.4
1.2
0.8
0.6
0.4
0.2
0
10000404
10000404
10000433
11000016
11000091
11000296
11000296
11000327
11000327
11000327
11000574
11000664
11000664

January, 2012
1400
1500
1600
1700
1800
1900
2000
2100
January, 2012
0.2
0.3
0.4
0.22
0.24
0.26
0.28
0.32
0.34
0.36
0.38
10000410 10000410
10000410 10000410
Project No.: C-580

10000410 10000410
10000410 10000410
10000414 10000414
10000414 10000414
10000414 10000414
10000432 10000432
10000432 10000432
10000443 10000443
10000443 10000443
11000002 11000002
11000003 11000003
11000016 11000016
11000026 11000026
11000026 11000026
11000046 11000046
11000046 11000046
11000046 11000046
11000069 11000069
11000069 11000069
11000091 11000091
11000091 11000091
2011)
11000095 11000095
Page 115 - 378

11000122 11000122
11000122 11000122
11000122 11000122
Consulting, 2011)
11000179 11000179
Standard Plot - STD_SM100

11000179 11000179
11000179 11000179
11000211 11000211
11000211 11000211
11000212 11000212
11000296 11000296
11000296

11000296
11000328 11000328
11000328 11000328
11000328 11000328
11000358
11000358
11000574
11000574
11000574
11000574
11000616
11000616
11000616
11000616
11000616
11000616
11000664
11000664
11000665
11000665
Copiapó, Chile
Caspiche Project
Figure 11.7: SRM Control Chart OM100 (2010-2011) - Gold (Source: Cube Consulting,
0.1
0.2
0.3
0.15
0.25
0.35
0
1
0.2
0.4
0.6
0.8
1.2
1.4
January, 2012
10000410
10000410
10000410 10000410
Project No.: C-580

10000414 10000410
10000410
10000432
10000414
10000432 10000414
10000433 10000414
10000432
11000002
10000432
11000003 10000443
11000016 10000443
11000016 11000002
11000003
11000026 11000016
11000026 11000026
11000046 11000026
11000046
11000046
11000046
11000069 11000046
11000069 11000069
11000069
11000095
11000091
11000095 11000091

2011)
11000095 11000095
Page 116 - 378

11000122
11000122
11000122
11000122 11000122
Consulting, 2011)
11000122 11000179

11000179 11000179
11000179
11000179 11000211
11000211 11000211
11000211 11000212
11000296
11000296
11000296

11000296 11000328
11000296 11000328
11000328
11000327
11000358
11000358 11000574
11000574 11000574
11000616
11000616
11000616
11000617 11000616
11000664 11000664
11000665
11000665
Copiapó, Chile
Caspiche Project
1000
1100
1200
1300
1400
1500
1600
1700
1800
0
1
0.2
0.4
0.6
0.8
1.2
January, 2012
10000410 10000410
10000410 10000410
Project No.: C-580

10000414 10000414
10000432 10000432
10000432 10000432
10000433 10000433
11000002 11000002
11000003 11000003
11000016 11000016
11000016 11000016
11000026 11000026
11000026 11000026
11000046 11000046
11000046 11000046
11000069 11000069
11000069 11000069
11000095 11000095
11000095 11000095

11000095 11000095
Page 117 - 378

11000122 11000122
11000122 11000122
Consulting, 2011)
Consulting, 2011)
11000122 11000122

11000179 11000179
11000179 11000179
11000211 11000211
11000211 11000211
11000296 11000296

11000296 11000296
11000296 11000296
11000327 11000327
11000358 11000358
11000574 11000574
11000616 11000616
11000617 11000617
11000664 11000664
11000665 11000665
Copiapó, Chile
Caspiche Project
Caspiche Project
Copiapó, Chile
2011)
1.1
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
10000414
10000414
10000432
10000443
10000443
11000002
11000095
Consulting, 2011)
Laboratory = ACME, Analyte =Cu (ppm), Method = Aqua Regia ICP
2450
2400
2350
2300
2250
2200
2150
2100
2050
2000
1950
10000414
10000414
10000432
10000443
10000443
11000002
11000095

January, 2012
Caspiche Project
Copiapó, Chile
Consulting, 2011)
1.4
1.2
0.8
0.6
0.4
0.2
0
10000414
10000414
10000432
10000443
10000443
11000002
11000095
2011)
(g/t) Method = Fire Assay 30gm
Laboratory = ACME, Analyte = Au (ppm),
0.75
0.7
0.65
0.6
0.55
0.5
0.45
0.4
0.35
0.3
10000410
10000414
10000414
10000432
10000443
11000095
11000180
11000211

January, 2012
Caspiche Project
Copiapó, Chile
Consulting, 2011)
2300
2200
2100
2000
1900
1800
1700
1600
10000410
10000414
10000414
10000432
10000443
11000095
11000180
11000211
Consulting, 2011)
1.2
0.8
0.6
0.4
0.2
0
10000410
10000414
10000414
10000432
10000443
11000095
11000180
11000211

January, 2012
Caspiche Project
Copiapó, Chile
Figure 11.19: SRM Control Chart OM300(2010-2011) - Gold (Source: Cube Consulting,
2011)
0.54
0.52
0.5
0.48
0.46
0.44
0.42
0.4
10000443
10000443
11000002
11000002
11000002
11000026
11000026
11000069
11000091
11000091
11000095
11000179
11000180
11000180
11000211
11000212
Consulting, 2011)
850
800
750
700
650
600
550
500
10000443
10000443
11000002
11000002
11000002
11000026
11000026
11000069
11000091
11000091
11000095
11000179
11000180
11000180
11000211
11000212

January, 2012
Caspiche Project
Copiapó, Chile
Consulting, 2011)
1.2
0.8
0.6
0.4
0.2
-0.2
-0.4
10000443
10000443
11000002
11000002
11000002
11000026
11000026
11000069
11000091
11000091
11000095
11000179
11000180
11000180
11000211
11000212
11.2.2.2 Newcrest
Drill samples were assayed for gold, silver, and copper at ALS Geolab in Copiapó, Chile.
The quality control programme consisted of external standards and blanks sent to ALS
Geolab, and check assays sent to ACME Laboratories and SGS Laboratories in Santiago,
Chile. ACME and SGS are ISO 9001 registered assay laboratories. The ACME checks
reportedly produced systematically higher (bias not quantified) gold values than those from
ALS Geolab (Van Kerkvoort et al., 2008). This indicates that the Newcrest gold assays may
be biased low and thus may underestimate the true gold grade of the Newcrest intercepts.
11.2.2.3 Anglo
Specific details regarding the sample preparation and assay methodology for the Anglo drill
samples are not available to Exeter. Drill samples were assayed for gold, silver, and copper
at ALS Geolab in Copiapó, Chile. ALS Geolab assay certificates show the laboratory
performed duplicate assays every five samples and included standards in each batch. Anglo
reports did not mention any significant issues with assay quality (Van Kerkvoort et al., 2008).

January, 2012
Caspiche Project
Copiapó, Chile
12.0 DATA VERIFICATION

The various steps taken by Exeter to ensure the integrity of analytical data are consistent
with standard industry practice. The sampling procedures are appropriate for the style of
mineralization and structural controls for the Caspiche Project. Cube’s examination of drill
cores, particularly in regard to the recognition of mineralized intervals, verified the
soundness of the core sampling procedure.
Cube undertook a site visit to the Caspiche Project on the 20th and 21st September 2011.
Cube’s site visit included a field inspection, confirmation of drill hole locations, review of the
geological and structural setting and inspection of representative mineralization in diamond
drill core.
Exeter conducts comprehensive internal and external validation of its databases, both in
hard copy and electronic format. Drill collars are professionally surveyed and independent
audits are encouraged. All laboratory results are checked by a qualified geologist before
loading into the database and again at regular intervals for long term trends.
Comprehensive external database audits have been conducted several times during the
period October 2008 to September 2011. AMEC has audited the Exeter Caspiche mineral
resource database on four occasions during January 2009, August 2009, January 2010 and
August 2010. The AMEC database audits have included checking of collar, survey, lithology,
stratigraphic unit, alteration, oxidation and assay data against original logging sheets and
assay records. In addition to database auditing, AMEC has checked the location of drill
holes in the field, and sampled and assayed select drill core intervals during their site visit in
October 2008.
Details of previous data validation can be found in NI 43-101 reports on Caspiche
(Wakefield and Marinho 2009a, 2009b, 2010 and Tolman and Perkins 2010). All four of
these documents have been previously lodged with the Canadian Securities Administrators
and are available for viewing on SEDAR at http://www.sedar.com. For completeness, some
of the sections from the previous reports are repeated below, either in full or part.
12.1 Mineral Resource Database Audits
12.1.1 AMEC
AMEC performed four audits of the Caspiche mineral resource database during the period
October 2008 to August 2010 and found that it was adequately free of data entry errors and
determined that it was acceptable for use in mineral resource estimation (Wakefield and
Marinho, 2009a, 2009b, 2010, and Tolman and Perkins, 2010).
At the end of the 2010 drill season, Exeter performed an internal database audit on all hard
copy and electronic data and determined that no significant data entry problems existed.
In August 2010, AMEC performed an audit of Caspiche drilling data received since the
effective date of the previous mineral resource estimate for the Property. No significant
errors were found in the mineral resource database in collar, survey, lithology, stratigraphic
unit, alteration or oxidation in data entry from original logs. A selection of assay records in
the database were checked against the original assay certificates and no errors were found.

January, 2012
Caspiche Project
Copiapó, Chile
12.1.2 Cube Consulting

Cube undertook an extensive verification of the drill holes database whilst in Exeter’s
Copiapó office in Chile. Database verification included:
A detailed overview of the database structure with Exeter's database manager;
A detailed check of 1 in 10 of all drill holes drilled by Exeter since January 2007
including:
Cross-validation of sample numbers from sample cutting sheet, Exeter
dispatch number, laboratory job number and database - no errors detected;
Cross-validation of certified reference material numbers between sample
dispatch sheet and database - no errors detected;
Cross-validation of official ALS and ACME lab assay reports (obtained
directly from the laboratories) against the database. Approximately 20% of all
database assay records were checked - no errors detected;
Check of downhole survey between original Reflex EZ Shot records and
database - no errors detected;
Check of database drill hole collar coordinates against original paper drill hole
record - no errors detected.
12.2 Drill Hole Locations
Exeter routinely uses a professional surveyor to determine the exact position of drill hole
locations. Drill hole collar locations are surveyed using a Leica TC 600 total station unit with
centimetre accuracy using the Instituto Geográfico Militar 26° to 36° transform.
Drill hole locations were verified during an October 2008 site visit to the property by AMEC
who collected handheld GPS location readings for seven drill hole locations in the Caspiche
Porphyry area to verify the accuracy of the drill hole coordinates in the mineral resource
database. An additional three holes were surveyed by Cube in September 2011 with a hand
held Garman 76Cx GPS unit. A comparison between Exeter surveyed drill hole locations
and GPS location readings are shown in Table 12.1.
Significant differences were noted between the Exeter surveyed drill hole locations and GPS
collar coordinates. Handheld GPS coordinates were collected using the PSAD56 datum,
which is a general transform that can vary up to 50 m from the more precise Instituto
Geográfico Militar 26° to 36° transform used by Exeter (Galaz, 2008). AMEC compared
Exeter surveyed collar locations with drill pads on geo-referenced digital images, and found
the collar locations to be acceptably accurate (Wakefield and Marinho, 2010).

January, 2012
Caspiche Project
Copiapó, Chile
Table 12.1: Caspiche Drill Hole Collar Checks
Drill Hole Difference Easting (m) Difference Northing (m) Checked By
CSD015 24.15 -51.4 AMEC
CSD016 16.4 -33.14 AMEC
CSD024 26 -38 AMEC
CSR023 28.2 -36.44 AMEC
SHC07 8.81 -49.04 AMEC
SPC03 15.29 -47.66 AMEC
CDH-03 15.49 -42.5 AMEC
CSD059 8.76 -50.66 CUBE
CSD031 20.34 -44.25 CUBE
CSD067 -2.92 -56.57 CUBE
12.3 Independent Sampling

12.3.1 AMEC Core Sampling
AMEC, during their October 2008 site visit, selected six Exeter drill hole intervals for check
assaying to confirm the presence of gold and copper in the Caspiche drill core (Wakefield
and Marinho, 2009a). Mineralized intervals at various depths were selected from the three
most relevant drill holes available at the time (CSD014, CSD015, and CSD016). Exeter split
(sawn quarter-core), sampled, and bagged the core under AMEC supervision and AMEC
submitted the samples to ACME Laboratories in Santiago, Chile, for assaying. ACME
assayed gold by standard 30-g fire assay and atomic absorption finish (ACME code G6),
and copper by four-acid total digestion and atomic absorption (ACME code 8TD).
Table 12.2 is a summary of the ACME check sampling of Caspiche drill core, and shows the
assay results from the original Exeter half-core sampling and the AMEC quarter-core
sampling. A single SRM submitted with the check samples reported good assay accuracy
for gold and copper.

January, 2012
Caspiche Project
Copiapó, Chile
Table 12.2: Summary of AMEC Check Sampling of Caspiche Core
Drill Hole Interval (m) Exeter Au (g/t) Exeter Cu (%) AMEC Au (g/t) AMEC Cu (%)
CSD014 242 – 244 0.41 0.33 0.55 0.40
CSD015 440 – 442 0.51 0.31 0.50 0.29
CSD015 600 – 602 1.16 0.38 1.16 0.39
CSD016 221 – 223 0.78 0.40 0.79 0.40
CSD016 381 – 383 1.18 0.45 1.62 0.54
CSD016 461 – 463 1.52 0.51 1.68 0.38
The assay results shown in Table 12.2 confirm the presence of gold and copper in Exeter
Caspiche drill core. AMEC assay results also agree reasonably well with Exeter assay
results.
12.3.2 Rio Tinto Metallurgical Sampling
Rio Tinto undertook a review of the Caspiche project in October 2008. As part of this review,
Rio Tinto took six samples of drill core coarse reject material for metallurgical testwork. The
samples were selected to be representative of a variety of alteration styles occurring at
Caspiche. A comparison of drill hole intercept grades and metallurgical testwork head
grades are presented in Table 12.3. In general, there is very good agreement between the
metallurgical testwork head grades and the drill hole assay grades as recorded in the drill
hole database.
Table 12.3: Summary of Rio Tinto Metallurgical Sampling of Caspiche Core

Drill Hole Met Test
Drill Interval
Alteration Style Intercept Grade Head Grade
Hole (m)
Au g/t Cu % Au g/t Cu %
CSD-15 Potassic with dominant Biotite / Intermediate Argillic, 474 - 480 1.12 0.29 1.12 0.29
CSD-16 Advanced Argillic / Potassic K-Feldspar dominant 281 - 287 1.72 0.52 1.65 0.51
CSD-16 Advanced Argillic / Potassic K-Feldspar dominant 415 - 421 1.58 0.47 1.70 0.47
CSD-16 Potassic with dominant Biotite 635 – 641 0.76 0.36 0.83 0.36
CSD-16 Potassic with dominant Biotite 724 - 734 0.77 0.39 0.60 0.15
CSD-25 Potassic with dominant Biotite 278 – 284 1.56 0.31 1.47 0.29
12.4 Exeter QA/QC

12.4.1 Geochemical Standards
Geochemical Standard Reference Material (SRM’s) has been used by Exeter in all drilling
programmes at Caspiche. During the period January 2008 to September 2011, SRM’s and
blanks have been inserted at rates varying between 1 in 25 to 1 in 40 samples. The majority
of SRM’s are provided by Geostats Pty. Ltd. (“Geostats”) of Australia. Exeter has also

January, 2012
Caspiche Project
Copiapó, Chile
produced and characterised some SRM’s based on representative Caspiche mineralized

material. To date, a total of 928 gold SRM’s have been submitted from 28 different
standards with recommended assay values varying from 0.24 to 2.14 Au ppm. In addition, a
total of 169 copper SRM’s have been submitted from 7 different standards with
recommended assay values varying from 90 to 2,252 Cu ppm
Cube undertook a review of all SRM results for the entire period between January 2007 to
September 2011. During this period, the majority of gold and copper SRM's performed within
the expected limits with 93 % and 92 % being within two standard deviations of the expected
value respectively. Cube made selected random checks of the database for SRM values
that were outside two standard deviations of the expected value and noted that in all cases
Exeter had highlighted these for follow-up.
In general, blanks showed acceptable performance with only 11 values exceeding 0.03 Au
ppm and only 1 value exceeding 0.09 Au ppm.
Cube is of the opinion that Exeter has implemented and continues to maintain a well
managed and robust QA/QC program and there does not appear to be evidence of
systematic error or material bias.
12.5 Twinned Holes
Exeter conducted selected confirmation drilling of Anglo drilling (two holes) and Newcrest
drilling (four holes).
Exeter confirmation drilling of Anglo drilling revealed a slight high-bias, on average, in the
Anglo gold assays, however the thickness of the intercepts are approximately equal. Anglo
copper assays are, on average, unbiased when compared to Exeter confirmation drilling
intercepts. Exeter confirmation drilling of Newcrest drilling showed that no significant bias
exists, on average, in the Newcrest gold assays, and that the thicknesses of the intercepts
are approximately equal. Newcrest copper and silver assays are, on average, unbiased
when compared to Exeter confirmation drilling intercepts.
AMEC reviewed the results from all six twinned holes and concluded that the Exeter drilling
confirms gold, copper, and silver grades (Newcrest only for silver) and thicknesses of both
the Anglo and Newcrest drill intercepts. AMEC concluded that Anglo and Newcrest drill hole
are acceptable for use in mineral resource estimation (Wakefield and Marinho, 2010). Cube
briefly reviewed the twin data and concurs with the AMEC conclusion.
12.6 Check Assaying of Samples Greater Than 1 Au ppm
As part of the assaying procedure, samples that return significant gold values greater than
1-2 Au ppm, are routinely re-assayed with a second fire assay using the same method as
the original assay. Figure 12.1 shows a scatter plot of the original assay versus the re-assay
of all gold samples with an original grade of greater than 1 Au ppm, a total of 560 pairs, with
one outlier removed. This comparison shows reasonable correlation indicating relatively low
variability within the pulp sample. This re-assaying procedure also includes the geochemical
standards.

January, 2012
Caspiche Project
Copiapó, Chile
Figure 12.1: Re-Assays of Samples >1 Au ppm

10
R² = 0.951
9
6
Re-Assay - Au ppm
0
0 1 2 3 4 5 6 7 8 9 10
Original Fire Assay - Au ppm
12.7 Cube Consulting Statement

Cube Consulting has undertaken reasonable endeavours to assess the veracity of drilling
data for the Caspiche project. It can be concluded that all logging, sampling and data
QA/QC procedures between January 2007 and September 2011 have been carried out to a
high industry standard and record keeping and database management is excellent.
Cube believes that the current database provides an accurate and robust representation of
the Caspiche project and is appropriate for use in mineral resource estimation.

January, 2012
Caspiche Project
Copiapó, Chile
13.0 MINERAL PROCESSING AND METALLURGICAL TESTING

13.1 Introduction
This Item summarizes the metallurgical testwork undertaken and in progress. It discusses
the nature and extent of the testing and analytical procedures and provides a summary of
the relevant results. Additional information is provided where available on sample
representivity on the different styles of mineralization and potential deleterious elements.
13.1.1 Historical Testing

Prior to 2008, the only metallurgical testwork carried out on Caspiche mineralization was
leaching testwork of a scouting nature on oxide samples. Exeter carried out bottle roll tests
on reverse circulation (RC) drill chips from the discovery hole CSD 013 at SGS Santiago.
Ten years earlier, Newcrest also carried out similar level scouting work on six intercepts at
SGS Santiago. There were no records of any metallurgical work being carried out by Anglo.
The test details of all these early metallurgical programmes were reported by Van Kerkvoort,
Delendatti and Perkins, in the first Exeter NI 43-101 Technical Report, “Technical Report &
Proposed Exploration for Caspiche Project, Region III, Chile” 26 April 2008, by Van
Kerkvoort, G., Delendatti, G.L.A., and Perkins, J. (Section 27, References).
13.1.2 Core Samples for Test Work

The first Exeter test programme was carried out on RC chips because of the timing of CSD
013 at the very end of the first field drilling season prior to the Andean winter. It was decided
that all future work would be carried out on drill core, and indeed from that time all drilling at
the Caspiche Porphyry was with diamond core, with the exception of a minor amount of
shallow RC precollars.
Following an examination of early assay statistics, Exeter geologists and metallurgists
decided it would be prudent to make a preliminary split of coarse crushed (nominal 70 %
passing 10 mm) half-drill core and store this material for future metallurgical test regimes. If
future statistics indicated a nugget effect that would require finer crushing of all the half-core,
this procedure would be reviewed.
In August 2008, Exeter selected drill-hole intervals from the Caspiche Porphyry oxide and
sulphide mineralized intercepts for metallurgical test work. Six oxide and six sulphide
intervals were selected and the stored coarse crushed material was appropriately
assembled and sent to two laboratories.
13.1.3 Preliminary Oxide Test Work

Caspiche oxide mineralization appeared to lie as a relatively thick horizontal blanket with
little to no copper content, averaging less than 0.01 %Cu or below the detection limit of the
laboratory analyses. It was hoped that this material would be amenable to heap leaching as
it was thought it would be very difficult to float any gold values into a concentrate.
McClelland Laboratories International (MLI) of Sparks, Nevada carried out bottle roll tests on
each of the six oxide intercepts at the as received size and at a finer crush of 1.7 mm. The
intercepts were then combined to form two composites classified as Andesite and Porphyry
which provided sufficient material for a column leach test on both. Gold dissolutions of

January 2012
Caspiche Project
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approximately 77 % and 84 % were achieved in 30 days of leaching with moderate reagent

consumptions. Exeter considered these results to be encouraging for heap leaching the
oxide blanket. The programme was reported in detail in the independent Amec NI 43-101
Technical Report, “Caspiche Property, Region III, Chile, NI 43-101 Technical Report,
Prepared for Exeter Resource Corporation” dated 14 September 2009 by Wakefield, T. W.,
and Marinho, R.
There was little oxide mineralization encountered in the 2009 drill programme and a
dedicated oxide drill campaign was planned for 2010 with the results described in 13.3
following.
13.1.4 Preliminary Sulphide Test Work

The first six sulphide intercepts were sent to G&T Metallurgical Laboratories in Kamloops,
BC in August 2008. G&T and Exeter agreed that the preliminary testwork for Caspiche
should examine a wide range of rock and alteration types for liberation and flotation
characteristics, prior to compositing.
All six samples were subjected to detailed modal analyses and mineralogical investigation to
identify probable primary and regrind sizes for a conventional porphyry copper circuit.
Rougher flotation was examined using standard reagents and once performance was
stabilized, concentrate samples were reground and three stages of cleaning carried out with
the objective of producing a 25 %Cu concentrate grade. The variable presence of enargite
(Cu3AsS4) was confirmed in all samples as a significant copper mineral.
Later, in July 2009, following the completion of the 2009 field programme, Exeter selected a
further 14 sulphide intervals which were a mix of quarter core and coarse reject material,
which in combination with the previous six, provided a broad and representative sample of
the mineralization to depths greater than 1,000 m down hole. Characterization test work
similar to the original six samples was completed at G&T in Kamloops, followed by a similar
programme of flotation testing.
As might be anticipated, the results were variable. Final concentrate grades ranged from
18 %Cu to 35 %Cu with an average of 27 %Cu, and average recovery at this grade was 83
%Cu. Gold recoveries to rougher concentrates averaged 78 % but dropped sharply through
the cleaner circuit to average 52 % in final concentrate. Enargite in final copper concentrates
resulted in arsenic assays from 0.02 % to just under 10 % with an average of 1.6 %As.
Arsenic is considered by most smelters to be a deleterious element in commercial copper
concentrates, generally above levels of 0.01 %As. Antimony was also noted at levels close
to levels where smelter penalties might be levied.
Centrifugal gravity testwork was also carried out on selected rougher tails to gauge potential
for scavenging gold values. Even though the rougher tails gold values were very low,
approximately 0.15 g/tAu, on some samples, there appeared to be some potential.
Flotation performance was interpreted to be more sensitive to changes in sulphur grade than
the style of mineralization, and it was decided to form composites from retained material
from the 20 intercepts based on sulphur content, and move to flowsheet and locked-cycle
testing (LCT). The high and low sulphur samples (HS and LS) were further split into high
and low arsenic (HA and LA) so that 4 composites in total were tested and designated,
LSLA, LSHA, HSLA and HSHA.

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G&T carried out the detailed flotation programme on these composites in the first half of
2010 using slightly lower than normal dosage rates of conventional reagents. In the rougher
flotation tests copper recovery averaged 90 % and gold recovery, 80 %. In general the
results pointed toward a primary grind P80 of about 130 µm, a rougher pH of 8.5, a
concentrate regrind P80 of about 20 – 25 µm, and an elevated cleaner pH of 11 – 11.5.
Flotation conditions were varied but found to have a relatively small impact on performance.
The locked cycle tests confirmed that the high sulphur composites were more difficult to
treat, with copper and gold recoveries averaging 85 % and 55 % respectively into a 24 %Cu
concentrate. Arsenic grades were 0.6 % As and 2.2 % As for the low and high arsenic
composites respectively. The low sulphur composites performed better with 87 % and 73 %
gold being recovered into a 27 %Cu concentrate, with similar arsenic grades for the LA and
HA samples.
G&T averaged the results of the four groups of LCTs but it is believed that this is not a good
representation of the tests as the conditions between the tests were altered in an attempt to
improve recovery and to some extent the concentrate grade.
The 8 LCT tests are summarized in Table 13.1. It can be seen that varying conditions did
indeed change the results, particularly the copper concentrate grade, significantly in
composites HSHA and LSLA. For all composites, high grade copper concentrates of at least
25 % Cu were achieved in all the tests except one.
Table 13.1: LCT Test Results at G&T

Test Composite Copper Gold Arsenic
No %Cu %Cu g/t Au %Au %
Recv. Recv.
47 HS - HA 30.0 82.0 68.7 52.1 3.3
51 HS - HA 16.5 88.6 43.3 59.2 1.7
G&T Average HS - HA 20.2 84.9 50.9 57.9 2.3
29 HS - LA 27.3 83.3 30.5 47.2 0.4
39 HS - LA 28.3 84.4 32.0 56.4 0.7
G&T Average HS - LA 27.8 84.6 31.6 52.0 0.6
13 LS - HA 33.5 86.1 79.4 69.9 3.2
37 LS - HA 24.7 87.5 57.0 71.2 2.6
G&T Average LS - HA 27.9 86.7 65.9 72.4 2.9
20 LS - LA 25.1 88.6 64.8 72.6 0.6
38 LS - LA 30.4 90.4 73.4 75.5 0.6
G&T Average LS - LA 26.8 89.1 67.2 72.7 0.6

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A number of gravity tests, using a laboratory scale Knelson concentrator and a super-
panner, were carried out on all four composites. Negligible gold was recovered in all but one
composite, HS – HA. In this composite, 10.4 % of the gold from flotation feed was recovered
into a concentrate containing 33 g/t Au.
In view of lower gold recoveries in the high sulphur composites, in mid-2010 Exeter
commissioned SGS Lakefield laboratories to carry out an independent test programme on
residual sample of the two high sulphur composites. Despite different reagent suites and
operators, very similar results were obtained.
The results from these two programmes were reported in more detail in the September 2009
Technical Report by AMEC and the September 2010 Technical Report by Tolman and
Perkins.
13.1.5 Concentrate Treatment

Exeter realized that Caspiche copper concentrates would almost certainly require further
treatment to remove arsenic from final concentrates in order for them to be marketable. A
large number of alternative treatment routes for arsenic removal either existed or were being
developed. However, with the low copper grades encountered at Caspiche, it would be
impractical to obtain sufficient concentrate from normal drill core samples to test more than
one or two.
In 2009, SNC Lavalin Australia (SNC) was retained to review the appropriate technologies
and select those most suited to Caspiche considering the concentrate characteristics and
the physical location of the project. The basis was a hypothetical Caspiche concentrate
based on flotation test results and hypothetical high and low altitude locations for treatment
facilities. Reductive roasting was selected to remove arsenic and antimony and produce a
saleable calcine product suited to existing custom copper smelters. Pressure oxidation was
recommended as an alternative to allow cathode copper and doré gold to be produced
directly; thereby bypassing the need to market concentrates. Testwork programmes were
developed to confirm these two approaches.
13.2 Sulphide Mineralization

Metallurgical testwork on mineralized sulphide material has continued and a number of
programmes are ongoing as of the effective date of this report (see section 13.5).
13.2.1 November 2010 Pilot Plant

Initially, Exeter geologists and metallurgists selected and sent 91 intercepts and used 84 of
these intercepts for the pilot plant blend that was considered representative of the sulphide
mineralization. The selections included all rock and alteration types and extended from 200
m to over 1300 m down hole. In total, 8620 metres of mineralization was represented and
the calculated head assay of the combined mass was 0.25 %Cu, 0.53 g/tAu, 2.05 %S and
0.03 %As. This assay approximates that of the overall reserves and in Exeter’s opinon
confirmed the representivity of the pilot plant sample.
This material all existed as coarse -9.5 mm crushed core with a total weight of over 11
tonnes and was sent to SGS Lakefield in Canada. The prime objective of the pilot plant
programme was to produce sufficient copper concentrate for roasting and pressure oxidation

January 2012
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testwork, estimated at around 60 to 70 kg. In addition large quantities of other flotation

products were collected, especially cleaner-scavenger tails which potentially represented a
significant loss of gold from circuit. Cleaner scavenger tails samples were cyanide leached
to test for gold recovery. A secondary but important objective was to test the flowsheet as
developed. A third, equally important objective was to obtain plant design parameters on key
process streams, for example rougher and cleaner tailings as well as the final concentrate.
Prior to the start of pilot plant operation, samples were split out for various physical tests and
pre-pilot flotation testing. The physical tests included Bond Ball Mill Work Index, SMC®
(SMC Testing Laboratories pty ltd) testing and gravity recoverable gold testing. The pre-pilot
flotation testwork included the same progression as previous test work; from batch rougher
tests to batch cleaner tests to locked cycle tests, and was carried out to confirm grind targets
and reagent conditions. In addition batch pyrite flotation was tested on the first cleaner
scavenger tails of two of the cleaner tests as well as on the same product from the final
cycle of the locked cycle test.
The pilot plant campaigns began on 9th November 2010 and lasted for just over two weeks.
The plant was assembled to mirror the flowsheet tested with flotation residence times being
approximately twice those indicated in laboratory test work. Target primary grind size was
120 µm to 130 µm and rougher concentrate regrind target was 20 µm to 30 µm. The
reagents used were potassium ethyl xanthate (PEX), potassium amyl xanthate (PAX),
Aerofloat 208 (A208), Methyl Isobutyl Carbinol (MIBC) as a frother, carboxy methyl cellulose
(CMC 7LT) as a depressant and hydrated lime for pH control.
The assembled plant was only run on day shift, and time was taken to assess early results
and make decisions on any changes to operating conditions, as well as to occasionally test
possible variations on flotation conditions in the laboratory. Five campaigns were run at
about 100 kg/hour for a single shift followed by an extended sixth run for approximately 60
hours. The campaigns were observed in part by Exeter and Aker Solutions (now Jacobs)
metallurgists.
Pilot plant flotation performance was reasonably steady for a manually controlled plant and
cleaner recycle flows appeared to stabilize approximately 1 to 2 hours after start up,
confirmed by hourly control samples. Grinding targets were difficult to achieve and the
closed circuit screen size had to be progressively increased until the 5th campaign. All
rougher tails and cleaner-scavenger tails flows were collected in 200 litre drums without
overflow, and allowed to settle. During the second campaign, a pyrite circuit was operated
on cleaner-scavenger tails using PAX as a stronger collector to produce a separate pyrite
concentrate and final tail.
Solid-liquid separation tests and rheology tests were carried out on rougher tails, cleaner-
scavenger tails and 3rd cleaner concentrate (final concentrate). The rheology tests were
carried out on the thickened material. Filtration tests were also carried out on the 3rd cleaner
concentrate. Detailed sizings and mineralogy of cleaner products was carried out.
Samples of cleaner-scavenger tails and the pyrite concentrate from the second campaign
were tested for gold dissolution in cyanide leaching tests. Selected solutions from these
tests were subject to sulphidization, acidification, recycling and thickening (SART) of
precipitate test work. Subsequently samples of the same products from locked cycle flotation
tests were similarly tested to check on variability of response.

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A very large volume of data and test results were generated by the pilot plant programme
described above. The principal results below were extracted from the SGS report, Project
12403-003, Final Report dated 28 February 2011. A selection of head assay values are
illustrated in Table 13.2. indicating that the material tested closely matched the material
selected.
Table 13.2: Sample Assays

Sample Cu % Au g/t S% As %
Exeter – Calculated head assay 0.23 0.54 1.79 0.03
SGS – Actual head assay split 0.25 0.53 2.1 0.03
SGS – PP feed average assay 0.25 0.55 2.03 n/a
SGS – LCT calculated head assay 0.20 0.44 1.85 n/a
13.2.1.1 Physical Tests

Duplicate SMC tests were carried out to provide Julius Kruttschnitt Mineral Research Centre
(JKMRC) Drop Weight Index (DWI) values, and other JKMRC mill design parameters, as
well as solids SG.
The results which are summarized in Table 13.3 indicated that the samples straddled the
average of more than 11000 test results on over 600 deposits in the JKMRC database.
Table 13.3: Physical Tests

Abrasion
Sample DWI A b parameter SG Ab T10
ta
kWh/m3 Value Rank Value Rank
1 6.29 81.6 0.51 0.41 2.62 41.6 mod hard 32.6 medium
2 5.21 69.8 0.72 0.50 2.62 50.3 medium 35.8 mod soft
The Bond Ball Mill work index (BWi) of a head sample at a passing screen size of 106 µm
was 12.8 kWh/tonne. The operating work index of the primary grinding mill during the pilot
plant extended run was 12.2 kWh/tonne when producing a P80 of around 120 µm, which is in
reasonable agreement.
13.2.1.2 Flotation Summary

Table 13.4 below summarizes the locked cycle tests and the average pilot plant results:

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Table 13.4: Selected Pilot Plant Flotation Results

Product Mass Assay (Adj.) Distribution, %
Wt% Cu % Au g/t S% Cu Au S
PP Feed 100.0 0.25 0.55 2.03 100.0 100.0 100.0

AVG PP- Rougher Conc 8.7 2.48 4.68 16.6 87.4 74.7 71.1
06A to Rougher Tail 91.3 0.034 0.15 0.64 12.6 25.3 28.9
PP-06D
1st Cleaner Scav Tail 7.9 0.34 1.55 15.0 10.8 22.5 58.3
3rd Cleaner Conc 0.8 23.5 35.4 32.2 76.6 52.2 12.8
Head (calc) 100.0 0.20 0.44 1.85 100.0 100.0 100.0
Rougher Conc 8.3 2.08 4.04 15.1 86.5 76.0 67.7
LCT Rougher Tail 91.7 0.029 0.12 0.65 13.5 24.0 32.3
1st Cleaner Scav Tail 7.5 0.15 1.13 12.9 5.6 19.3 52.6
3rd Cleaner Conc 0.8 20.9 32.3 35.9 81.0 56.7 15.0
The pilot plant was not intended to simulate or predict full scale plant recoveries; however
LCTs are often used for this purpose. The results were in reasonable agreement although
the LCT sample appeared to have a lower grade. The best pilot plant run was the 4th which
produced a final concentrate of 31 %Cu at 75 % copper recovery and 59 % gold recovery.
As in previous test work, losses of gold and copper to first cleaner-scavenger tails were
considerable as can be seen in the table above.
Of note were the mass pulls to rougher concentrate that were necessary to achieve these
recoveries, and the resultant high weights reporting to cleaner tails together with substantial
copper and gold values. To a large extent this was considered normal and a function of the
low copper head grade and significant quantities of pyrite present.
Table 13.5 details assays that were carried out on the concentrate and cleaner-scavenger
tailings for downstream testwork. Mineralogical analyses indicated that 55 % of the copper
was present as chalcopyrite and 30 % as enargite in both products. In this concentrate the
arsenic and antimony contents would be considered deleterious by most custom smelters.
Mercury is also elevated and could at a level considered deleterious by some smelters.
Table 13.5: Detailed Product Assays

Product Stream Cu % Au g/t Ag g/t S% As % Cl g/t F% Hg g/t Sb % SiO2%
rd
3 Cleaner Conc 22.3 31 73 33.5 2.27 150 0.017 48 0.41 9.2
Cleaner-Scav tails 0.24 1.2 3.7 14.2 0.07 85 0.16 1.9 0.00 46.0

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13.2.1.3 Product Characteristics

All three principal products settled well with non-ionic flocculant Magnafloc 333 with clear
supernatants. There was quite a large variation in results and the best results for good
percentage underflow solids are summarized in Table 13.6:
Table 13.6: Settling Test Results

Mag 333 Feed Underflow Unit Area Critical Solids
Product Stream
g/t % solids (wt) % solids (wt) m2/t/day Density % wt
Rougher Tailings 25 10 57 0.048 66
3 rd Cleaner Conc 10 16 76 0.021 nd
Cleaner-Scav tails 46 5 45 0.103 50
For rougher tailings, unit areas were in the range of 0.048 to 0.071 m2/t/d for a flocculant
dosage of 25 - 45 g/t.
For scavenger cleaner tails, unit areas were in the range of 0.103 – 0.144 m2/t/d for a
flocculant dosage of 36 – 56 g/t.
Rheology tests were carried out using a concentric cylinder rotational viscometer (CCRV) to
determine critical solids density (CSD) of the three products. The CSD of rougher tailings
was 66 % wt of solids at 98 Pa unsheared yield stress. The sample appeared thixotropic on
shearing with a solids content of up to 68.7 %. The Cleaner Scavenger tails CSD was 50 %
wt corresponding to an unsheared yield stress of 55 Pa. Both samples displayed primarily
Bingham Plastic behaviour.
Final concentrate was fast settling when shear was applied and a vane viscometer had to be
used. At 83.1 and 81.7 % solids, peak yield stresses of 122 and 60 Pa were measured
respectively. Such fast settling behaviour will need to be examined in more detail for
pumping calculations.
Pressure filtration testing of the final concentrate was not possible due to settling in the feed
chamber of the feed diaphragm pump. Alternative pump units to suit the chamber were not
available; however Exeter metallurgists believe such issues are not considered likely to
affect commercially available production units.
Vacuum filtration testing was straightforward and SGS predictions were as shown in Table
13.7.

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Table 13.7: Vacuum Filtration Test Results

Feed Cake Cake Vacuum Filter Cycle Dry
Filter Test
Solids Thickness Moisture Times (Minutes) Output
Predictions 2
% wt mm % wt Form Dry kg/m /hr
75 15 9 0.12 0.86 2062
Belt Filter
75 30 9 0.47 1.73 1842
75 10 11.8 0.05 0.09 7770
Disc or Drum
75 18 10.9 0.17 0.28 4317
Filter
75 30 10.1 0.47 0.78 2590
The results for the specific throughput for the belt filter at a lower moisture content of 8 %
were about 950 kg/m2/h – this would be an acceptable parameter for the design criteria.
However, a pressure filter is likely to produce a better result than a belt filter and should be
tested at the earliest opportunity with one of the commercial suppliers. The use of a drum
filter is not recommended due to the higher product moisture.
A rougher tailings sample from the pilot plant campaign has been treated for almost 40
weeks in a humidity cell at SGS Lakefield. The leach solutions appear relatively stable and
at the time of writing no parameters are outside Chilean environmental limits.
13.2.2 SART Testwork

The SGS pilot plant run provided the opportunity to gather representative kilogram-quantity
samples of cleaner-scavenger tails and test further processing of them in efforts to reduce
losses of copper and gold, as well as potential silver, that had occurred in all flotation test
work to date.
In view of the high mass pulls to rougher flotation concentrate, it was decided to follow up
selective earlier laboratory tests and try to separate a pyrite concentrate from the cleaner-
scavenger tails containing gold values. This was done during the second pilot plant
campaign throughout an operational shift and the results are shown in Table 13.8:
Table 13.8: Pilot Plant Pyrite Flotation Results

Weight Assay Distribution %
Product
% Cu % Au g/t S% Cu Au S
Pyrite Feed (Cl Sc Tails) 100.0 0.13 0.76 8.23 100.0 100.0 100.0
Pyrite Concentrate 33.4 0.32 1.92 21.7 82.7 83.8 88.0
Pyrite Tails 66.6 0.03 0.19 1.49 17.3 16.2 12.0
It should be pointed out that the actual operational mass pull during this pyrite flotation test
was quite high at 12.3 % as opposed to more normal mass pull targets of 7 % to 8 %. A
sample of pilot plant cleaner-scavenger tailings and pyrite concentrate as well as two
samples of cleaner scavenger tails from locked cycle tests were pre-aerated for 24 hours
and then leached for 48 hours in 0.1 % NaCN solution at 40 % solids as the optimum
conditions. No carbon additions were trialed in these tests. The results of the leach tests are
summarized in Table 13.9.

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Table 13.9: Flotation Product Cyanide Leaching Results of Flotation Plant Products
48 hour % extraction NaCN Calculated Head
Sample Leached
Au Ag Cu Kg/t Au g/t Ag g/t Cu %
PP Cleaner Scavenger Tails 67.6 39.1 46.5 3.99 1.25 4.1 0.26
PP Pyrite Concentrate 67.3 32.2 46.9 4.48 1.56 4.6 0.30
LCT Cl Sc Tails - HSHA 60.5 48.0 49.2 1.77 1.19 2.9 0.12
LCT Cl Sc Tails - HSLA 60.2 50.7 47.9 1.33 1.11 1.8 0.08
SART tests for cyanide recovery were carried out on three of the solutions from these tests.
The optimum conditions were found to be pH 4 using 110 % of the stoichiometric
requirement of sodium hydrogen sulphide (NaSH). Sulphuric acid additions ranged from 1.3
g/L to 1.8 g/L and re-neutralization hydrated lime additions ranged from 0.94 g/L to 1.4 g/L.
The results are summarized in Table 13.10.
Table 13.10: SART Cyanide and Copper Recovery Results

Sodium Cyanide Copper
SART Sample Added Recovered Recovered Feed Tails Recovered
kg/t kg/t % mg/t mg/t %
PP Cleaner Scavenger Tails 4.74 3.5 74 851 0.4 100
LCT Cl Sc Tails - HSHA 3.03 2.6 86 363 8.0 98
LCT Cl Sc Tails - HSLA 2.64 2.1 80 244 0.4 100
The copper recoveries were almost quantitative as expected however the cyanide
recoveries ranged from 74 % to 86 %, most probably as a result of cyanide present as
thiocyanate, SCN-, which cannot be regenerated in the SART circuit and is instead mostly
precipitated into the copper product.
13.2.3 Pressure Oxidation of Caspiche Concentrate

SGS were selected to carry out a batch bench-scale pressure oxidation (POX) testwork
programme on a portion of the pilot plant final concentrate.
The POX tests were carried out in 2 litre Parr titanium autoclaves and examined the effects
of temperature, residence time and grind size. Copper extraction was greater than 99 % for
the conditions tested which included temperatures from 210 oC to 225 oC and 60 to 120
minutes residence time. As expected, reaction kinetics were faster at the higher temperature
of 225 degrees and with a reground concentrate P80 of 32 µm complete oxidation occurred
within 60 minutes. The arsenic content of final solutions was low, with 200 mg/L average
depending on the conditions used in each individual test while virtually all antimony
remained in the residue. The final solutions contained from 20 to 23 g/L Cu and 40 to 50 g/L
H2SO4. Weight loss of solids was between 49-60 %. The POX residues were washed and
selected samples were bottle-roll leached at 25 % solids in 1 g/L sodium cyanide solution for
24 to 48 hours. Gold dissolutions were high and ranged from 95 % to 99 % with an average
cyanide consumption of 1.4 kg/t. Generally leaching was complete after 24 hours. Lime
consumptions ranged from 5 to 70 kg/t with the lower figure obtained using a “hot cure”
stage on the autoclave discharge to break down basic sulphates. Silver recoveries were low

January 2012
Caspiche Project
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and ranged from 7 % to 29 %. It is possible that these could be improved by a post POX
treatment route and should be investigated in future pilot plant work.
All leach tests resulted in calculated gold head assays lower than the assay head. SGS
speculated that some gold could be in the POX pregnant solution as a result of chloride or
fluoride but it did not show up in assays and was not investigated further.
A comparison leach was carried out on the un-oxidized flotation concentrate. This showed
14 % gold dissolution after 48 hours with 19 kg/t cyanide consumption.
13.2.4 Reductive Roasting of Caspiche Concentrate

Two roasting technology suppliers were contracted to carry out small scale roasting testwork
on Caspiche pilot plant final concentrate. The objective was to reduce arsenic contained in
the concentrate to 0.2 % As or less while maintaining sulphur content in the roaster product
(“calcine”) as high as possible. Outotec carried out testwork in Germany and Sweden and
Technip carried out testwork at Hazen Research in Denver, Colorado.
13.2.4.1 Outotec Roasting Testwork

Outotec carried out testwork in a standard Boliden rotary kiln and in a 50 mm fluid bed
reactor using SO2 gas as the fluidizing medium. The resulting calcine values from both tests
are held to reflect those for full scale operation.
The calcine indicated very good fluidizing properties when fluidized with nitrogen at up to
700 oC, however agglomeration was observed at 650 oC when fluidized with SO2. Outotec
found the agglomerates to be soft and anticipated that this would not be an issue with a full
scale roaster operating with double the gas velocities and with an inert sand fluidizing
medium.
A summary of the fluidized bed calcine results is given in Table 13.11, copied from the
Outotec report.
Table 13.11: Elemental Analysis of Calcine Test Products

Test Temp Cu (%) Fe (%) S (%) Zn (%) As (%) Sb (%) SiO2 Al2O3
(oC) (%) (%)
113/10* 23.6 25.9 32.8 0.75 2.40 0.53 9.2 1.8
1 600 22.8 31.4 27.9 0.63 0.19 0.25 12.7 2.4
2 650 24.1 31.1 27.3 0.73 0.14 0.18 12.0 2.2
3 700 24.9 30.9 27.2 0.75 0.16 0.13 11.8 2.2
4 725 26.0 30.8 25.5 0.81 0.19 0.16 11.4 2.2
5 600 23.5 30.9 27.6 0.68 0.33 0.24 12.2 2.4
6 650 24.1 31.3 25.5 0.69 0.11 0.16 12.7 2.2
7 700 25.0 31.0 25.6 0.74 0.18 0.15 11.7 2.2
8 725 25.4 31.0 24.1 0.75 0.26 0.16 11.5 2.5
The programme indicated an optimum temperature in the 650 oC to 700 oC range for
reducing arsenic and antimony while maintaining sulphur values. Calcine residues of much
less than 0.20 %As were achieved and almost 70 % of the antimony was removed. Outotec
considered the concentrate to be very good for full scale fluidized roasting and
recommended further pilot scale work to optimize conditions.

January 2012
Caspiche Project
Copiapó, Chile
13.2.4.2 Technip Roasting Testwork

The testwork was carried out at Hazen Research’s facilities in Denver under the supervision
of Technip personnel. Hazen carried out the work in a 107 mm inside diameter stainless
steel fluidized bed reactor within a heating chamber. The inert fluidizing medium was sand.
The off gases and solids were treated in a cyclone for solids recovery to underflow and the
cyclone overflow passed to a baghouse. Final off gases were scrubbed by NaOH in a
packed column. The column was fluidized with nitrogen into which a calculated amount of
oxygen was metred. Process gases were sampled and analysed.
Six runs of approximately 2 hours duration at steady state were carried out under different
process conditions. Technip found that temperatures of 725 oC to be best for arsenic
removal and achieved calcines of 0.2 %As at these levels as indicated in Table 13.12,
copied from the Hazen Research report. Sulphur assays in the calcine were 26 % to 27 %S.
The baghouse product (arsenic concentrate) assayed from 3 %As to almost 7 %As.
Table 13.12: Summary for Partial Roast of Caspiche Flotation Concentrate

Measurement Fluid-bed Roast Test
1 2 3 4 5 6
Average Temperatures, °C
Bed zone (3) 625 650 625 675 725 725
Freeboard 430 435 415 430 450 530
Cyclone outlet 290 300 285 300 315 350
Average Rates, g/min
Concentrate 27.2 26.8 25.2 26.6 26.2 120.6
Cyclone 21.6 20.4 21.8 21.0 20.6 85.2
Baghouse na 0.64 0.63 0.73 0.51 3.8
3*
Gas Flows, sft /min
Fluidizing N2 2.93 2.93 2.93 2.93 2.93 1.03
Feed transport N2 0.45 0.45 0.45 0.45 0.45 0.48
Purge N2 0.02 0.02 0.02 0.02 0.02 0.02
Oxidant, sLmin O2 1.9 1.9 2.4 2.4 2.4 9.3*
Total Sulfur Assay, wt%
Concentrate feed 33.7 33.7 33.7 33.7 33.7 33.7
Final test cyclone 27.9 27.5 27.4 25.9 26.1 27.2
Final test baghouse na 25.2 24.3 23.2 23.5 22.1
Arsenic Assay, wt%
Concentrate feed 2.16 2.16 2.16 2.16 2.16 2.16
Final test cyclone 0.83 0.678 0.599 0.318 0.191 0.206
Final test baghouse na 2.45 2.93 3.15 3.08 6.87
na = not availabe
* standard cubic feet per minute.56 sft3/min air added as oxidant with the N2 equivalent O2 (sL/min) from air hown.
For the prefeasibility study the parameters set were: Feed grades 0.231 %Cu and
0.562 g/tAu; recovery 83 %Cu and 60 %Au; concentrate grade 25 %Cu and 44 %Au;
crushing P95 at 2”, grinding P80 at 130 µm, regrind P80 at 30m.

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13.3 Oxide Mineralization

There was very little additional oxide mineralization encountered in the 2009 drill
programme, so a specific drilling programme was completed in the 2009 – 2010 field season
to obtain appropriate oxide samples.
Following the encouraging results of the initial column leaching tests referred to in 13.1.3 a
comprehensive column leach programme was implemented. The objective was to examine
leaching characteristics at a range of oxide crush sizes in order to be able to select the most
appropriate size or project possible run-of-mine (ROM) recoveries by heap leaching. Seven
large diameter PQ core (85 mm diameter) and HQ core (63 mm diameter) drill holes were
completed to characterize the oxide zone, with several of them “twinning” RC holes by
earlier explorers. The oxide mineralization encountered in these PQ holes was considered
by Exeter geologists to be broadly representative of the oxide resource in terms of depth
and area.
The mineralization intersected in these holes was split into 11 composites based on rock
type, depth or location and ranged in length from 22 metres to 116 metres of continuous
sample. The intention was to column test each composite at nominal P80 sizes of 50 mm, 25
mm and 12.5 mm, as well as completing bottle roll and physical (crushing, abrasion)
testwork.
The programme was carried out at MLI in 2010 in 10’ high columns with diameters up to 12”
selected to suit the top size of material. The weight requirements for the larger columns
meant that only 8 of the 11 composites were able to be tested at all 3 sizes. One of these 8,
Composite 8, was a transition sample, included to evaluate what might happen if leaching of
oxide was extended into the transition zone. Composite 1 was a sample of mineralized
transported material from 0 to 22 m depth and there was only sufficient to be tested at 12.5
mm. Composite 3 (86 m to 146 m) and Composite 11 (120 m to 150 m) were tested at P80 of
25 mm and 12.5 mm.
The whole PQ core was hand-crushed at MLI in order that the largest size range would be
as coarse as possible. The average size distribution of the 8 composites tested at the
coarser size turned out to be approximately 65 % passing (P65) 50 mm rather than the
nominal 80% passing size. This coarser than nominal size should be considered when
reviewing results. Head grades of all the oxide composites ranged from 0.39 to 0.67 g/t Au
and 50 to 230 ppm Cu. The transition composite contained 0.07 %Cu and 0.83 % sulphide
sulphur.
The seven oxide composites that were tested at all three feed sizes gave average gold
recoveries of 79.3 %, 80.4 % and 81.7 % for 50 mm, 25 mm and 12.5 mm respectively. Gold
recovery rates for the -50 mm feeds were substantially slower than for the finer feeds,
however gold recovery was expected to approach those obtained from the finer feeds with a
longer leaching cycle. Composite 11 (120 m to 130 m) gave the lowest gold recoveries of
the oxide samples at just over 70 % for the 25 mm material. An example of a kinetic curve
for gold dissolution from the test programme is given in the Figure 13.1.

January 2012
Caspiche Project
Copiapó, Chile
Figure 13.1: Gold Leach Rate Profile
Gold recoveries obtained from Composite 8 at -50 mm, -25 mm and -12.5 mm were 54.2 %,
68.8 % and 68.9 % respectively, and the leach kinetics were slower than for the oxide
samples. As expected with the higher copper content, cyanide consumptions were
significantly higher. The results suggest that transition material could be treated by heap
leaching if required, however it is probable that copper might need to be removed and
cyanide recovered in a SART facility, also that gold recoveries will be much lower. Due to
the copper in solution, transition material should not be leached or mixed with oxide
material.
Bottle roll test results at P80 -1.7 mm feed sizes were reasonably predictive of column test
gold recoveries, and were effectively used for estimation of column test lime requirements.
This suggests that in production, such tests might be able to be used for performance
prediction if carried out on blast hole cuttings.
Cyanide consumptions for the oxide composites were high, but should be significantly lower
in commercial production. This is based on comparative testwork data base results and
actual production results of similar operations. Lime requirements were moderate, and pH
control during leaching generally was not difficult. Load/permeability tests on the column
residues indicated that the oxide ore material would display adequate permeability under
expected heap stack height compressive loadings.
Sufficient material was left from two composites to carry out additional column leaches at 25
mm using lower cyanide concentrations, namely addition rates of 1.00, 0.50 and 0.25 kg/t
NaCN. The results of this optimization programme are summarized in Table 13.13.

January 2012
Caspiche Project
Copiapó, Chile
Table 13.13: Results of Optimization Programme

Composite Number Gold Recovery % at NaCN Consumption, kg/t
NaCN Addition Strength g/L NaCN Addition Strength g/L
(P80 of 25 mm, 80 day
leach) 1.00 1.00 0.50 0.25 1.00 1.00 0.50 0.25
6 (CSD049; 10 m to 126
80.3 84.2 83.0 80.4 1.71 1.67 1.10 0.72
m)
9 (CSD054; 24 m to 128
81.4 79.4 76.8 77.3 1.38 1.38 1.13 0.88
m)
The programme indicated the expected downward trend in cyanide consumption together
with a small reduction in gold recovery with the weaker solutions. Once again, even at the
lower cyanide additions, consumptions in a full scale heap are expected to be considerably
lower.
The results from this programme were considered to confirm comprehensively the technical
application of heap leaching for oxide ore by both MLI and Exeter and, together with the
crushing and abrasion results, provided sufficient information to carry out a detailed study
into this treatment route by Aker Solutions.
Aker endorsed the Exeter programme results and during the preliminary engineering trade-
off phase of the PFS determined that a 5 year oxide operation on -50 mm material would be
close to optimal. In reviewing the crushing design, the conventional use of a gyratory
crusher in the circuit for such a short operational life was considered sub-optimal as the
crusher would be too small for the later sulphide operation. Aker’s conceptual design called
for screening ahead of jaw crushing followed by open-circuit secondary crushing. Both Aker
and a crusher manufacturer called for a large sample to be sized in order to develop
reasonable crushing plant design parameters.
In January 2011, two truckloads of mineralized oxide material was excavated from 3
trenches located next to drill holes 14, 23 and 64 and were sent to SGS Santiago for sizing.
This data was used to estimate screening requirements ahead of the jaw crusher and assist
in dimensioning the crusher. The samples were selected and composited to reflect actual
Caspiche oxide ore composition as much as practically possible given the limited outcrop
and depth penetration. All waste or “transported” material was carefully excluded from the
samples.

January 2012
Caspiche Project
Copiapó, Chile
Figure 13.2: Oxide Material
The results obtained from SGS are reproduced in Figure 13.3 and indicate ROM feed sizing
(F80) from the test pit locations of 2.8” or 71 mm.
Figure 13.3: Results Obtained From SGS
MLI are also completing humidity cell testwork on column residues to check the propensity
for acid rock drainage (ARD) on heap leach materials.
For the prefeasibility study the parameters set were: Feed grade average 0.404 g/tAu;
recovery 78 %; crushing P95 at 2”.

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Caspiche Project
Copiapó, Chile
13.4 MacNeill Zone Testwork

The MacNeill Zone is an area of late stage intermediate sulphidation mineralization to the
west-south-west of the main porphyry zone on the lower flange of a barren diatreme. It is
characterized by low copper assays normally less than 0.10 %Cu and in general average to
above average gold assays. Before it was recognized as a separate system, one intercept
from the 20 original intercepts sent to G&T was from MacNeill. This intercept, CSD 036,
196 m – 262 m, assayed 0.03 %Cu and 0.94 g/t Au and was not amenable to flotation,
recovering only 47 % of the copper and 34 % of the gold into a concentrate assaying 0.71
%Cu.
Accordingly it was decided to check the preliminary response of this zone to heap leaching
by carrying bottle roll and column leach tests at MLI in Reno.
13.4.1.1 Preliminary MacNeill Testwork

Initially 6 samples from drill holes CSD 044 and CSD 042, considered typical of MacNeill
mineralization, were sent to MLI and represented progressively deeper intervals in the zone.
Gold assays varied from 0.36 g/t Au to 1.33 g/t Au and copper from 0.04 %Cu to 0.11 %Cu.
In spite of the variations in gold head grade depths, bottle roll gold recoveries in % terms
from all six samples were similar at similar stages of the leach, and averaged just under 60
% with a range of 54 % to 65 %. Cyanide consumptions averaged 0.5 kg/t NaCN on all but
the 0.11 %Cu sample which consumed 1.2 kg/t NaCN. Leach kinetics appeared to be quite
rapid.
13.4.1.2 MacNeill Amenability Testwork

It was decided to follow up this work at MLI with 13 coarse crushed (9.5 mm) intercepts from
the 2009-2010 drilling campaign which were proportioned to make 7 composites, 3 destined
for column tests and 4 destined for bottle roll and flotation tests. The 3 composites for
column testing represented shallow, deep and “transitional” material - where MacNeill
overprints conventional Caspiche mineralization (“McTrans”). The four for flotation testing
represented MacNeill and McTrans split into high sulphur (HS) and low sulphur (LS)
composites.
The results of cyanide leaching all 7 composites at different sizes are summarized in Table
13.14:

January 2012
Caspiche Project
Copiapó, Chile
Table 13.14: MacNeill & McTrans Gold Leach Recoveries
Gold Recovery % NaCN consumption kg/t

Composite
9.5 1.7 75 9.5 1.7 75
mm mm µm mm mm µm
MacNeill Shallow 69.7 69.0 80.6 1.29 0.68 0.59
MacNeill Deep 55.3 64.0 79.1 1.05 0.39 0.29
McTrans 54.7 63.1 71.4 1.27 1.00 1.05
MacNeill HS n/a 65.0 73.6 n/a 0.45 0.47
MacNeill LS n/a 67.2 75.9 n/a 0.75 0.67
McTrans HS n/a 60.7 67.9 n/a 1.05 1.28
McTrans LS n/a 68.8 83.6 n/a 1.22 0.52
The three 9.5 mm results represent agglomerated column tests where the gold leached very
quickly to the final recovery levels of between 55 % and 70 %.
Figure 13.4: Cumulative Recovery
The high cyanide consumptions in the column tests are believed to be a function of leaching
for 80 days and would be expected to be substantially less at 20 to 30 days. Generally
cyanide consumptions are higher on McTrans than on MacNeill material and reflect the
amount of copper present. Copper extractions ranged from 12.5 % to 25 %. No percolation
problems or slumping was observed in the column tests.
While flotation was carried out on the appropriate composites, they did not respond
particularly well at normal sizes and when recovery did improve at a 45 µm, concentrate
copper grades were still low.
For the prefeasibility study the parameters set were: Feed grade average 0.508 g/tAu;
recovery 40 %; crushing P95 at 2”.

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Caspiche Project
Copiapó, Chile
13.5 Ongoing Test Programmes

As of the effective date of this report, testwork is continuing on several programmes at both
SGS Lakefield and MLI in Reno. While the work has not been formally finalized and no
reports are available, in some cases final test data has been available and has been used
by Aker and Exeter.
13.5.1 Sulphide Mineralization

12403-008 Flotation Optimization
This programme uses left-over pilot plant feed material to optimize flotation conditions and
improve copper and gold flotation recoveries. It is a conventional programme looking at a
wider range of physical and reagent conditions recommended by metallurgical experts in
this field of low grade copper porphyry flowsheet development.
Within the scope are trials of magnetic separation, flash flotation and gravity recovery of gold
from both feed and pilot plant tails.
12403-005 Variability Assessment
This programme has used lower than average copper grade drill core intercepts from the
pilot plant shipment of 91 intercepts. Conditions close to the optimum identified in 12403-008
are being used to review the response of each sample to standard conditions but may be
adjusted based on detailed mineralogy being carried out. This means that the programme
necessarily has to lag behind the optimization programme. Weights of intercepts available
for testwork are limited and it may not be possible to go to LCT tests.
12403-006 HPGR and Physical Characteristics
This programme uses whole HQ core from an abandoned drill hole, CSD039 (Composites 1,
2 and 3) and a metallurgical hole Mett03 (Composites A to H) drilled for the purpose down
through the main zone of mineralization. The samples numbering is progressive with depth
to reflect both key type changes in mineralization and to provide sufficient weight for a
comparative comminution programme. Comminution results were largely completed some
time ago and have been provided to Aker (Table 13.15) for use in preliminary HPGR
evaluation; however the design criteria for the three cases under study have not used this
data. Together with the pilot plant data and comparative work indices carried out by both
G&T and SGS, Exeter consider the comminution characteristics have been adequately
defined for pre-feasibility purposes in terms of representivity and variability in the deposit.
Additional results of a confirmatory nature would be required for feasibility study purposes.

January 2012
Caspiche Project
Copiapó, Chile
Table 13.15: Physical Test Results 12403-006

SPI Bond
Sample Relative SMC Abrasion UCS HPGR
Index Ball Wi
Name Density Axb Index (g) Mpa kWh/t
(min) kWh/t
Comp 1 2.66 76.5 50.1 0.36 73 1.8 9.9
Comp 2 2.60 76.7 37.3 0.34 69 1.7 10.4
Comp 3 2.49 97.1 32.0 0.10 16 1.7 9.9
Comp A 2.52 73.8 43.2 0.20 13 1.9 11.5
Comp B 2.50 85.8 39.9 0.26 27 1.7 9.2
Comp C 2.53 69.7 46.9 0.33 32 1.8 10.4
Comp D 2.57 57.0 49.6 0.40 53 1.8 11.5
Comp E 2.49 43.9 58.4 0.34 75 1.8 11.4
Comp F 2.55 51.8 62.1 0.36 59 1.9 11.1
Comp G 2.59 50.2 47.4 0.28 26 1.7 9.6
Comp H 2.53 44.3 69.2 0.39 76 1.9 12.5
When the PFS started, the density of the ore was unknown, however, for design purposes,
2.7 t/m3 was assumed as a typical for a porphyry copper ore in Chile. It has no impact in the
crushing and conveying sizing because those systems were calculated with a bulk density
(1.6 t/m 3), and the effect on slurries are less than 1 % of volumetric flow rates, i.e. the pumps
and pipes sizes for the project do not change.
Most of the data was as expected and suggested an increase in hardness with depth with
the exceptions of Composites 3 and G. The UCS results appeared to be lower than
expected and the detailed report suggested most have failed on fracture planes.
Locked cycle HPGR tests have been completed and the Bond Mill work index after HPGR
will be compared with the conventional BWi and alternative SAG mill and HPGR circuits
compared. In addition, flotation responses will be compared between conventionally milled
and HPGR milled materials after mineralogical examinations are completed.
12403-009 MacNeill HPGR and Flotation
Two metallurgical HQ drill holes were drilled into the main MacNeill Zone and into McTrans
material late in the 2010 drilling season. SGS have been supplied with part of this material to
check the HPGR and physical characteristics of these two ore types and in general conduct
a similar programme to 12403-006. Work has started on the various grinding parameters.
13.5.2 Oxide Mineralization
There is currently no testwork on oxide mineralization other than humidity cell leaching for
environmental purposes. In the coming 2011/12 drill season, a second campaign of PQ
holes is planned to provide samples for a comprehensive breakage and sizing assessment,
together with further confirmatory column testwork. A proposal to set up a large column test
programme on ROM ore was not accepted because of the difficulty of establishing the
representivity of any near surface or accessible material.

January 2012
Caspiche Project
Copiapó, Chile
13.5.3 MacNeill and Low Copper Mineralization

MLI are carrying out a programme of column testing of MacNeill mineralization at sizes
coarser than the 9.5 mm previously tested. This programme is expected to be reported in
the near future.
Other low-copper gold mineralization exists in the main Caspiche hypogene zone with
copper grades potentially too low to anticipate a reasonable flotation response given the
results of the current testwork to date. Preliminary samples of typical material from these
areas have been identified and sent to MLI in order to assess the possible amenability of
this material to heap leaching.

January 2012
Caspiche Project
Copiapó, Chile
14.0 MINERAL RESOURCE ESTIMATION

The following discussion regarding mineral resource estimation was modified from an
internal report prepared for Exeter by AMEC (Marinho, 2011).
The additional drilling, recommended in previous studies, improved the geological
knowledge of the central and north-west areas of the deposit.
The Caspiche mineral resource estimate was updated by Daniel Silva under the supervision
of Mr. Rodrigo Marinho, P.Geo (APEGBC), CPG (AIPG), AMEC Principal Geologist. The
mineral resource estimates were prepared under the Canadian Institute of Mining Metallurgy
and Petroleum (CIM) Definition Standards (2005) and CIM Estimation of Mineral Resources
and Mineral Reserves Best Practice Guidelines (2003).
The Caspiche mineral resource estimate was reviewed and verified by Mr Ted Coupland,
MAusIMM(CP), Director and Principal Geostatistician of Cube Consulting Pty Ltd ("Cube").
Cube is an independent Australian firm specializing in mining and mineral resource
consulting services.
14.1 Drilling Database
Exeter provided AMEC with a drilling database on the Caspiche property updated to 19
April, 2011. AMEC imported the collar, survey, lithology, alteration, and assay data into
GEMS® (version 6.2.4), a commercial mining software program. GEMS® validation routines
were used to check for overlapping intervals, missing intervals, and consistent drill hole
lengths between tables, no errors were reported.
The actual database totals 69,293.85 m of drilling in 140 drill holes. Table 14.1 is a summary
of the drill holes that were used for the current mineral resource estimate. The database
includes 6,620 m of 6 additional drill holes completed by Exeter since the last update of the
resource estimate (30 December, 2010).
Table 14.1: Summary of Drill Data used for the Caspiche Mineral Resource Estimate
Campaign No. Holes Min. Length (m) Max. Length (m) Avg. Length (m) Total(m)
AngloGold 18 32 200 84.33 1,518

Newcrest 35 92 332 208.88 7,311
Exeter 87 73 1,497.10 694.99 60,464.85
Total 140 32 1,497.10 494.96 69,293.85
14.2 Topography
AMEC used an updated topographic surface file for the mineral resource estimates. The
topographic model was based on 0.5 m resolution digital elevation model (DEM) modelling
from high definition stereo satellite photos. Then, isolated portions of the topographic
surface were adjusted using surveyed drill hole collar elevations to create a final topographic
surface for use in mineral resource estimation.
Figure 14.1 shows detailed topography and drill hole locations over the Caspiche Porphyry
project.

January, 2012
Caspiche Project
Copiapó, Chile
Figure 14.1: Caspiche and Drill Hole Locations – Caspiche Porphyry Project (Source:
Cube Consulting, 2011)
500m

January, 2012
Caspiche Project
Copiapó, Chile
14.3 Lithological Model and Definition of Domains

Exeter provided triangulated solid models representing the Caspiche lithological and
alteration units. Examples of the lithological and alteration wireframes provided to AMEC are
shown in Figure 14.2 to Figure 14.4.
AMEC reviewed interpreted shapes on vertical sections and level plans for the main
lithological units; diorite Porphyry (DP), quartz-diorite Porphyry 1 (QDP1), quartz-diorite
Porphyry 2 (QDP2), basement (CFB), volcanic breccias (VOLCBX), diatreme breccias
(DTB) and MacNeill Zone (MAC).
Table 14.2 summarizes the lithological units used for the modelling.
An alteration model, consisting of potassic and argillic units and a calcite-potassic zone at
the bottom of the system was also constructed.
Table 14.2: Lithological Unit Description
Domain Description
DP Diorite Porphyry (main host rock for mineralization)
DTB Diatreme breccia
QDP2 Quartz-diorite Porphyry (late and lower grade)
QDP1 Quartz-diorite Porphyry
VOLCBX Volcanic breccias
CFB Earliest cretaceous host rock (Basement)
OB Overburden
MAC MacNeill
Exeter provided AMEC with an updated limit of oxidation boundary for this model update.
The limit of oxidation was constructed from logging information; mainly sulphide
descriptions. AMEC checked the oxide and sulphide solids against the drill holes database
coding and found it to be acceptable.
The lithological solids provide the main support for the estimation domains. AMEC
compared summary statistics and contact plots for combinations of lithology, alteration and
weathering models. Final estimation domains for gold and silver were based on lithological
and alteration codes without weathering zones. Copper estimation domains included
weathering zones.
Gold grades are clearly higher in the DP but there are no clear lithological controls for gold
mineralization. AMEC has interpreted the DP intrusion to be the source of mineralizing
solutions carrying mainly gold and silver. The mineralizing solutions were disseminated
through the other lithological units during the mineralization event.

January, 2012
Caspiche Project
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Figure 14.2: Caspiche Lithological Model - Plan (Source: Cube Consulting, 2011)
Late Mineral Diatreme Early Diorite Inter-mineral

Breccia - DBT2 Porphyry - DP Diorite Porphyry
First Phase – QDP1
Inter-mineral Diorite
Porphyry Second
Phase – QDP2
500m

January, 2012
Caspiche Project
Copiapó, Chile
Figure 14.3: Caspiche Lithological Model – Looking North (Source: Cube Consulting, 2011)

January, 2012
Caspiche Project
Copiapó, Chile
Figure 14.4: Caspiche Lithological and Alteration Model – Looking North (Source: Cube Consulting, 2011)

January, 2012
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Copiapó, Chile
Copper mineralization is not controlled by lithological units, but is controlled by the oxidation
boundary. The contact plots for copper show a transitional contact from the oxide to the
sulphide zone and for grade estimation purposes AMEC created a transitional or mixed zone
by projecting the oxide bottom surface 15 m above and below. Samples from oxide and
sulphide zones are shared during grade estimation only for the transitional zone blocks.
14.4 Composites
The nominal sample length for assays is 2 m, and only six samples exceed 8 m in length.
AMEC regularized the drilling data by compositing the drill-hole data into 8 m lengths within
the lithological, alteration and weathering solids.
AMEC back-tagged the 8 m composites using the lithology solid shapes. The composites
were also back-tagged with the oxide, mixed, sulphide and alteration solids.
14.5 Exploratory Data Analysis
14.5.1 Contact Analysis
Prior to estimation, AMEC constructed contact profiles to analyze the gold, copper and silver
composite grade behaviour at the lithological boundaries. The aim of this analysis was to
characterize the boundary conditions between the main lithological units and to determine
the appropriate combinations of composite data for grade estimation.
Hard, firm, and soft contacts are important for the grade estimation plan. Soft contacts
permit sample sharing from two adjacent lithological units during grade estimation. Hard
contacts do not permit sample sharing. Firm contacts allow sample sharing across contacts
for a certain distance only.
AMEC found firm contacts for the following domain contacts: DP / CFB, DP / VOLCBX,
QDP1 / CFB and QDP1 / VOLCBX. The remaining domain boundaries were considered as
hard. For the firm boundary domains, AMEC created halos where samples are shared.
AMEC expanded the interpretations of DP and QDP1 units horizontally by 60 m and 30 m,
respectively, to represent these halos. The estimation domain codes for the expanded DP
and QDP1 units were denoted DPEX and QDP1EX respectively. During grade estimation,
blocks within this halo shared samples from the DP and QDP1 domains. Additional
estimation domains were defined based on potassic-calcic alteration (KCA). The KCA
domain was expanded horizontally by 30 m (KCAEX) to allow sample sharing. A summary
of grade estimation domains and sample sharing strategies for gold/silver and copper are
shown in Table 14.3 and 14.4, respectively.

January, 2011
Caspiche Project
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Table 14.3: Estimation Domains and Data Combinations – Gold and Silver
Domain Sample Sharing
OB Overburden Samples Only

CFB+VOLCBX Shared Samples CFB+VOLCBX
KCA Potassic-Calcic Alteration Samples Only
KCAEX Samples within 30 m Halo Zone Outside KCA
DP DP Samples Only
DPEX Samples within 60 m Halo Zone Outside DP
QDP1 QDP1 Samples Only
QDP1EX Samples within 30 m Halo Zone Outside QDP1
QDP2 QDP2 Samples Only
DTB DTB Samples Only
MAC MAC Samples Only
Table 14.4: Estimation Domains and Data Combinations – Copper

Domain Sample Sharing
Oxide Oxide Samples Only
Mixed Shared samples Between Oxide and Sulphide ±30 m
Sulphide Sulphide Samples Only
14.5.2 Summary Statistics

Exploratory data analysis comprised basic statistical evaluation for 8 m composites for gold,
copper, silver, arsenic, iron, molybdenum, sulphur, cobalt and zinc. However, the main
elements of interest are gold, copper and silver.
Using box plots AMEC observed similar gold means for the basement (CFB) and volcanic
breccia units (VOLCBX). The diorite Porphyry (DP) has the highest gold mean and more
constrained distribution of grades. All units, excepting OB and DTB, have low coefficient of
variation values, confirming the low variability of gold composite grades in the main
mineralized units.
Arsenic grades broadly correlate with intensity of argillic alteration which is strongest higher
in the system. Although isolated “pods” of higher grade arsenic can locally occur at depth in
the central portions of the system.
The DP unit is preferentially mineralized, i.e. it has a higher mean. AMEC notes that the
weathering profile, associated with alteration types, is markedly the preferable control for
copper mineralization.
Silver grade distributions are consistent for most lithological units. The oxide portion of the
VOLCBX has a higher average silver grade than the overall mean and also higher than the
mixed and sulphide zones of the QDP1.
Molybdenum (Mo) grades are higher in VOLCBX, MacNeill and basement rock. This
element is likely to be of magmatic provenance and like other gold rich porphyry deposits

January, 2011
Caspiche Project
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the distribution of molybdenum in a “halo” around the central intrusions is interpreted to be a

function of temperature controlling mineral precipitation, but more detailed mineralogical
studies are required to understand the controls for molybdenum mineralization. For this
reason AMEC has not reported Mo grades or considered its participation in the economics
of the project.
In general, the summary statistics show low variability of gold and copper grades in the main
units, diorite Porphyry, basement, VOLCBX, and quartz-diorite porphyries. The
homogeneous distribution is also indicated by the low CV values. This homogeneity can also
be observed in the cumulative frequency distributions.
Figure 14.5 to Figure 14.13 show gold, silver and copper log-probability plots for 8 m
downhole composites for the Caspiche Porphyry project classified by stratigraphy, alteration
and weathering.
Figure 14.5: Caspiche 8 m Composites by Stratigraphy – Log-Prob Plot – g/t Au

(Source: Cube Consulting, 2011)

January, 2011
Caspiche Project
Copiapó, Chile
Figure 14.6: Caspiche 8 m Composites by Stratigraphy – Log-Prob Plot – g/t Ag


January, 2011
Caspiche Project
Copiapó, Chile
Figure 14.7: Caspiche 8 m Composites by Stratigraphy – Log-Prob Plot - Cu %


January, 2011
Caspiche Project
Copiapó, Chile
Figure 14.8: Caspiche 8 m Composites by Alteration – Log-Prob Plot – g/t Au


January, 2011
Caspiche Project
Copiapó, Chile
Figure 14.9: Caspiche 8 m Composites by Alteration – Log-Prob Plot – g/t Ag


January, 2011
Caspiche Project
Copiapó, Chile
Figure 14.10: Caspiche 8 m Composites by Alteration – Log-Prob Plot - Cu % (Source:

Cube Consulting, 2011)

January, 2011
Caspiche Project
Copiapó, Chile
Figure 14.11: Caspiche 8 m Composites by Weathering – Log-Prob Plot – g/t Au


January, 2011
Caspiche Project
Copiapó, Chile
Figure 14.12: Caspiche 8 m Composites by Weathering – Log-Prob Plot – g/t Ag


January, 2011
Caspiche Project
Copiapó, Chile
Figure 14.13: Caspiche 8 m Composites by Weathering – Log-Prob Plot - Cu %


January, 2011
Caspiche Project
Copiapó, Chile
Table 14.5 to Table 14.7 summarize basic statistics by estimation domain as determined by
AMEC in Section 14.5.1 for gold, silver and copper respectively.
Table 14.5: Caspiche 8 m Composites by Estimation Domain – Summary Statistics -

Au ppm
No Minimum Maximum Average Standard Coefficient
Domain
Sample Au ppm Au ppm Au ppm Deviation of Variation
OB 116 0.003 2.208 0.184 0.345 1.876

CFB+VOLCBX 3399 0.003 2.404 0.332 0.272 0.821
KCA 130 0.003 1.047 0.127 0.169 1.326
KCAEX 66 0.019 1.379 0.313 0.303 0.969
DP 356 0.177 2.263 1.075 0.407 0.379
DPEX 443 0.134 1.727 0.695 0.307 0.442
QDP1 839 0.027 5.194 0.452 0.37 0.818
QDP1EX 354 0.023 2.165 0.524 0.401 0.764
QDP2 598 0.003 3.4 0.184 0.286 1.552
DTB 394 0.003 0.938 0.032 0.075 2.383
MAC 598 0.014 2.748 0.498 0.352 0.706
Table 14.6: Caspiche 8 m Composites by Estimation Domain – Summary Statistics

– Ag ppm
Domain
Sample Ag ppm Ag ppm Ag ppm Deviation of Variation
OB 112 0.05 15.68 1.922 3.129 1.628

CFB+VOLCBX 3237 0.1 399.153 1.177 7.304 6.204
KCA 130 0.1 6.204 0.793 0.805 1.016
KCAEX 66 0.15 5.076 0.929 0.842 0.907
DP 356 0.249 22.373 1.667 2.032 1.219
DPEX 443 0.150 6.575 1.142 0.829 0.726
QDP1 839 0.141 11.258 1.089 0.961 0.882
QDP1EX 354 0.1 18.903 1.018 1.453 1.427
QDP2 591 0.05 22.138 1.036 1.755 1.694
DTB 394 0.059 4.693 0.626 0.733 1.17
MAC 598 0.15 19.729 1.095 1.322 1.207

January, 2011
Caspiche Project
Copiapó, Chile
Table 14.7: Caspiche 8 m Composites by Estimation Domain – Summary Statistics

– Cu %
Domain
Sample Cu % Cu % Cu % Deviation of Variation
Oxide 919 0.000 0.173 0.009 0.011 1.198

Mixed 333 0.000 0.508 0.054 0.095 1.767
Sulphide 6030 0.000 1.066 0.169 0.145 0.858
14.6 Variography
AMEC used Sage2001 software to construct down-the-hole and directional correlograms for
the estimation domains for gold, copper, silver, molybdenum, sulphur and arsenic. The
nugget value was determined from the down-the-hole correlograms. Directional correlogram
models were fitted using two spherical structures. Typically, the nugget value is low. The first
structure ranges of gold along the mineralization plunge are long, reaching 480 m in the
QDP1 intrusion. In most of intrusive domains, the variances of both the first and second
structures are similar.
Cube undertook selected variography of the Caspiche Porphyry as part of an independent
review of the AMEC 2011 resource estimate. Cube's findings were similar to that of AMEC,
in particular, the presence of a low relative nugget value with long and very well structured
variogram ranges in a vertical plunge direction for gold and copper. Silver appeared
somewhat more variable, manifested by a higher relative nugget and less well developed
variogram ranges. Cube combined the DP and QDP1 intrusive units for the purposes of
variography. Figure 14.14 and Figure 14.15 show variogram models with maximum ranges
of 750 m and 700 m in the vertical plunge direction for gold and copper respectively.
Figure 14.14: Caspiche Variogram Model – DP+QDP1 – Vertical Plunge - Gold

Distance (m)
0 250 500 750 1000
0.25 0.25
23783
21022
25480
26142
26505 17524
0.20 25040 D90 0.20
24406
Variogram : AU_PPM
Variogram : AU_PPM
22701
20197
16572
0.15 0.15
11798
7987
0.10 0.10
4763
0.05 4678 0.05
05
0.00 0.00
0 250 500 750 1000
Distance (m)

January, 2011
Caspiche Project
Copiapó, Chile
Figure 14.15: Caspiche Variogram Model – DP+QDP1 – Vertical Plunge - Copper

Distance (m)
0 100 200 300 400 500 600 700 800 900 1000
26142
26505 25480
23783
0.04 25040 D90 0.04
24406
22701
Variogram : CU_%
Variogram : CU_%
20197
0.03 0.03
16572
11798
0.02 0.02
7987
4763
0.01 4678 0.01

05
0.00 0.00
0 100 200 300 400 500 600 700 800 900 1000
Distance (m)
14.7 Restriction of Extreme High Grade Values

AMEC evaluated probability plots to define grade outliers for gold, silver, copper,
molybdenum, arsenic, sulphur, iron, cobalt and zinc by estimation domains.
In general, the probability plots indicate that outlier values occur in the upper 1 % to 5 % of
the distribution. AMEC controlled the outliers by using a restricted search ellipse during
grade estimation. The grade thresholds and distance for gold and silver outlier by domain
are shown in Table 14.8. Table 14.9 summarizes restriction parameters for copper.
The outlier restriction is applied during the block grade estimation. High-grade samples are
permitted to estimate grades for blocks within the defined distance thresholds, beyond the
distance the samples are capped at the grade threshold.

January, 2011
Caspiche Project
Copiapó, Chile
Table 14.8: High Grade Restriction for Gold and Silver

High Grade Search
Domain Range (m)
Au Threshold Ag Threshold
(g/t) (g/t) X Y Z
OB 1.00 10.0 40 40 25
CFB+VOLCBX 1.90 12.0 40 40 25
KCA 0.50 2.3 40 40 25
KCAEX 1.00 2.0 40 40 25
DP 2.10 5.0 40 40 25
DPEX 2.10 5.0 40 40 25
QDP1 1.90 5.1 40 40 25
QDP1EX 1.60 4.0 40 40 25
QDP2 1.00 10.0 40 40 25
DTB 0.30 3.0 40 40 25
MAC 1.10 5.0 40 40 25
Note: suffix “EX” means that the unit had its interpretation expanded
Table 14.9: High Grade Restriction for Copper

High Grade Search
Domain Range (m)
Cu Threshold (%)
X Y Z
Oxide 0.05 40 40 25
Transition 0.48 40 40 25
Sulphide 0.80 40 40 25

January, 2011
Caspiche Project
Copiapó, Chile
14.8 Block Model Dimensions and Grade Estimation

AMEC defined a block model with regular blocks of 25 m x 25 m x 15 m and rotated it to a
057° azimuth to better fit the drilling sections orientation.
14.8.1 Estimation Plan
AMEC estimated gold, silver, copper, arsenic, iron, sulphur, cobalt, zinc and molybdenum;
however, only the main elements (gold, silver and copper) were reported. Grade estimation
was completed by domain using Ordinary Kriging (OK). The grade estimation was
completed in three passes to allow estimation of all, or at least most of the blocks coded
within the mineralized units. The first two estimation passes had the same search
parameters, but the third had a more relaxed sample selection.
The estimation parameters for gold, silver and copper are summarized in Table 14.10.
Sample sharing is based upon the contact profiles and statistical analysis for the lithology
and weathering domains.
AMEC defined different search orientations for each domain based upon geological trends
and grade continuity observed from the visual inspection of drill-hole data and the actual
knowledge of the mineralization controls.
Table 14.10: Estimation Parameters for Gold, Silver and Copper
Search Ellipse
Min. Max. Max. Max.
No.
Domain Pass Rotation (°) Ranges(m) No. No. Comp. Comp.
Octant
Comp Comp / Hole /Octant
Z X Z X Y Z
DP 1 87 60 - 125 150 125 7 15 4 2 2

DPEX
DTB
2 87 60 - 125 150 125 4 15 4 2 2
MAC
QDP2
OB 3 87 60 - 900 1200 900 2 9 4 2 2
1 87 75 - 125 150 125 7 15 4 2 2

CFB
+ 2 87 75 - 125 150 125 4 15 4 2 2
VOLCBX
3 87 75 - 900 1200 900 2 9 4 2 2
1 87 90 - 125 150 125 7 15 4 2 2

QDP1EX
KCAEX
2 87 90 - 125 150 125 4 15 4 2 2
KCA
QDP1
3 87 90 - 900 1200 900 2 9 4 2 2
The estimation plan for gold is controlled by lithological units and the calcite potassic unit.
The estimation plan for copper includes a hard boundary between the oxide and sulphide
boundary. Sample sharing is permitted in the transitional zone within 30 m, up and down, of
the oxide/sulphide boundary.

January, 2011
Caspiche Project
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14.9 Density
AMEC used 898 density determination values available to calculate the average for each
lithological unit (Table 14.11). Exeter determines density using the water immersion method
on whole core lengths of approximately 15 cm. Because of high variability in the DP unit, two
values were assigned to this unit based upon alteration type, argillic and potassic plus
calcite-potassic.
AMEC assigned density values to blocks based upon the lithological codes. In AMEC’s and
Cube’s opinion, these density values are reasonable for use in mineral resource estimation
at this level of study.
Table 14.11: Average Density Values for Caspiche Resource Model
Rock Type Determinations Density(g/cm3)
OB 9 2.17
BASEMENT 225 2.54
VOLCBX 274 2.40
DP-Argillic 27 2.45
DP-Potassic 24 2.58
QDP1 129 2.51
QDP2 78 2.42
DTB 48 2.39
MAC 84 2.43
14.10 Block Model Validation

AMEC validated the Caspiche model to ensure appropriate honouring of the input data. A
nearest neighbour (NN) model was created to validate the OK model. The validation
comprised: summary statistics checking for global estimation bias, drift analysis, smooth
effect analysis and visual inspection of composites against blocks in vertical sections and
horizontal planes.
14.10.1 Basic Statistics
AMEC generated tables of basic statistics comparing the OK and NN estimates to check for
global bias in the gold, copper and silver grade estimates. The OK estimate is slightly higher
in mean gold grade compared to the NN estimate in most of the domains. The differences in
the global mean are smaller than 5 % and AMEC considered them acceptable (see Table
14.12).

January, 2011
Caspiche Project
Copiapó, Chile
Table 14.12: Comparison between Composite, NN and Kriged Statistics, Gold
Blocks
Composites
Mineralization Average CV
No.
No. Average CV Kriged (g/t Au) NN (g/t Au) Kriged/NN Kriged NN Kriged/NN
OB 116 0.18 1.87 1,694 0.14 0.14 100% 1.07 1.60 67%
BASEMENT 1,616 0.36 0.77 55,122 0.24 0.24 100% 0.78 0.91 86%
VOLCBX 2,637 0.40 0.83 56,226 0.26 0.25 104% 0.90 1.04 87%
DP 370 1.04 0.41 7,325 0.84 0.82 102% 0.49 0.59 83%
MAC 598 0.50 0.70 11,595 0.43 0.44 98% 0.38 0.55 69%
QDP1 925 0.42 0.87 12,802 0.40 0.40 100% 0.67 0.79 85%
QDP2 637 0.18 1.58 17,206 0.13 0.12 105% 0.92 1.27 72%
DTB 394 0.03 2.36 12,050 0.02 0.02 100% 1.10 1.56 71%
The OK grade estimates for copper are 100 % equal to the NN grades, illustrating that
copper estimate is not globally biased.
Kriged and NN estimates for silver show a difference in the global mean of less than 5 % for
all domains and AMEC considered the estimate to be within an acceptable range.
14.10.2 Drift Analysis
Spatial bias in the block model can be detected using swath plots. These are obtained by
plotting the average kriged and NN grades along different directions. AMEC used only
blocks estimated in Passes 1 and 2 for this analysis, because these are the blocks
estimated with more information and possibly candidates for measured and indicated
resources.
The OK and NN models show local disagreements, but in AMEC’s opinion, these are not
significant. AMEC visually compared the NN and OK grades and noticed that some
disagreements occur at the borders of the model, where drilling is limited (see Figure 14.16).

January, 2011
Caspiche Project
Copiapó, Chile
Figure 14.16: East-West Swath Plot, Sulphide, Gold (Source: AMEC, 2011)
14.10.3 Visual Validation

AMEC completed a visual inspection comparing grades of composites and blocks in vertical
sections and plan views. AMEC concluded that the grade estimate represents the composite
grades and that grade extrapolation is well controlled.
Figure 14.17 is an example of a vertical section with composites and blocks coloured by
gold grades. Good agreement between estimated grades and composite grades are
observed. AMEC did not observe high grade blow-outs or areas with extreme extrapolation
when considering blocks as candidates for Measured, Indicated and Inferred categories.

January, 2011
Caspiche Project
Copiapó, Chile
Figure 14.17: Vertical Section (looking northwest) with Blocks and Composite Grades
for Gold (Corridor of ±100 m) (Source: Cube Consulting, 2011)
Au g/t
500m
14.10.4 Smoothing
Kriged estimates are generally used directly for estimating resource tonnages above various
cutoffs. This practice gives correct results, a priori, only at a zero-grade cutoff. At any cutoff
grade that is greater than zero, the smoothing-effect may distort the kriged estimate grade-
tonnage curves. The effective amount of smoothing in the kriged estimates depends on the
variogram model, in particular the nugget-effect and the ranges, and on the composite
selection criteria for kriging. At cutoffs less than the global grade average, the tonnage given
by the kriged estimates will be overestimated, and at cutoffs greater than the global grade
average, it will be underestimated.
There are several techniques to assess and handle this problem. AMEC used a Hermitian
correction method, which consists of:
1) Computing the theoretical dispersion variance of the blocks, knowing the variogram
model of the relevant metals.
2) Transforming the distribution of the declustered composites (NN) so that it reflects a
block support; this is done using a Hermitian correction (Herco).
3) Comparison of the grade-tonnage curve of the Herco transforms with the grade-
tonnage curve of the kriged estimates.
The theoretical block dispersion variances (BDV) of the 25 m x 25 m x 15 m blocks were
calculated for gold using AMEC’s single block kriger (sbkbs.exe).

January, 2011
Caspiche Project
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The BDVs were then used in AMEC’s in-house Herco routine (Herco_04f.exe) to transform
the distribution of the NN. Grade-tonnage curves were generated and are shown in Figure
14.18.
Smoothing can be exacerbated by a number of factors, such as large drill-hole spacing
relative to variogram ranges, high nugget effect and large numbers of composites used in
the estimation. At Caspiche, smoothing varies from one mineralized unit to the other but the
amount of smoothing at around 0.25 g/t Au, which is the approximately operational cut-off, is
relatively limited. Consequently, resources stated at 0.25 g/t Au should not be significantly
over - or under - estimated because of smoothing.
Figure 14.18: Gold Grade-Tonnage Curve, VOLCBX Domain (Source: AMEC, 2011)
14.10.5 Independent Validation by Cube Consulting

Cube undertook a variety of validation steps to form an independent opinion as to the
veracity of the August 2011 Caspiche resource estimate. Validation steps included:
Importation of AMEC block model and replication of resource figures;
Review of lithological and alteration interpretation wireframes;
Independent drill hole coding, compositing and composite statistics;
Independent variography;
Independent estimation and gold and copper for the DP and QDP1 domains and
comparison to AMEC estimation;
Visual and statistical validation of resource estimate;
Reasonable prospects for economic extraction;
Review of resource classification.
January, 2011
Caspiche Project
Copiapó, Chile
14.10.5.1 Importation of AMEC Block model

Cube imported the AMEC block model into Gemcom Surpac™ and was able to replicate the
sulphide resource figures precisely. A very minor discrepancy was observed when
comparing the oxide resource figures however this difference is considered as immaterial.
14.10.5.2 Review of Lithological and Alteration Interpretation Wireframes
All interpretation wireframes appear to adequately honour logged geological and alteration
characteristics. Cube considers the lithological and alteration interpretation to be a robust
and appropriate representation of the Caspiche Porphyry deposit.
14.10.5.3 Drill Hole Coding, Compositing and Statistics
Independent drill hole coding, compositing and composite statistics undertaken by Cube
confirm the veracity of this component of work by AMEC.
14.10.5.4 Independent Variography
As indicated in Section 14.6, independent variography undertaken by Cube broadly confirms
the parameters defined by AMEC.
14.10.5.5 Independent Estimation
Cube undertook a high level independent check estimation of the DP and QDP1 zones
within the reportable resource constraint applied by AMEC. Cube's check estimate relied
upon the independently derived drill hole coding, compositing, variography and Ordinary
Kriging estimation parameters. Cube's check estimate was within 0.5 % of AMEC’s gold
estimate at a cutoff of 0.25 Au g/t and within 2.6 % of AMEC’s copper estimate at a cutoff of
0.10 Cu %. Figure 14.19 and Figure 14.20 show comparative grade-tonnage curves
between Cube’s and AMEC’s resource estimates within the DP and QDP1 domains for gold
and copper respectively. Cube concluded that the check estimates sufficiently demonstrated
the robustness of the AMEC resource estimation.

January, 2011
Caspiche Project
Copiapó, Chile
Figure 14.19: Cube vs AMEC Grade-Tonnage Curve, DP+QDP1 Domain - Gold

Cube vs AMEC
DP + QDP1 Inside Resource Pit
Gold
1.4 350000000
300000000
1.2
250000000
1
200000000
Au ppm
Tonnes
0.8
150000000
0.6
100000000
0.4
50000000
0.2 0
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5 0.55 0.6 0.65 0.7 0.75 0.8 0.85 0.9 0.95 1
Cut-Off
AMEC Au ppm Cube Au ppm AMEC Tonnes Cube Tonnes
Figure 14.20: Cube vs AMEC Grade-Tonnage Curve, DP+QDP1 Domain - Copper

Cube vs AMEC
Sulphide DP + QDP1 Inside Resource Pit
Copper
0.5 350000000
300000000
0.45
250000000
0.4
200000000
Tonnes
Cu %
0.35
150000000
0.3
100000000
0.25
50000000
0.2 0
0 0.02 0.04 0.06 0.08 0.1 0.12 0.14 0.16 0.18 0.2 0.22 0.24 0.26 0.28 0.3 0.32 0.34 0.36 0.38 0.4
Cut-Off
AMEC Cu % Cube Cu % AMEC Tonnes Cube Tonnes

January, 2011
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14.10.5.6 Visual and Statistical Validation

Cube undertook visual and statistical validation of the AMEC Caspiche resource estimation
and concludes that the resulting model appears to be a reasonable reflection of the input
data.
14.10.5.7 Reasonable Prospect of Economic Extraction
It is Cube's opinion that the approach taken by AMEC in evaluating “reasonable prospects of
economic extraction” is well considered and robust for defining the reportable mineral
resources for the Caspiche project.
14.10.5.8 Resource Classification and Reporting
The approach taken by AMEC for mineral resource classification and reporting of the
Caspiche mineral resources is considered appropriate by Cube and adequately satisfies the
reporting requirements as defined by the CIM guidelines (CIM 2005) National Instrument NI
43-101.
14.11 Resource Classification and Tabulation
AMEC assessed reasonable prospects of economic extraction by applying preliminary
economics for potential open pit and underground mining methods. The assessment does
not represent an economic analysis of the deposit, but was used to determine reasonable
assumptions for the purpose of resource tabulation. Mining and process costs are based on
NCL’s Scoping Study and process recoveries were estimated from current testwork.
AMEC completed a Lerchs-Grossman (LG) optimization using Whittle® (version 4) software
to determine the resource shell for open pit resources. Whittle parameters are listed in Table
14.13. Note that only gold and copper were considered as revenues for floating the open pit
and underground scenarios.

January, 2011
Caspiche Project
Copiapó, Chile
Table 14.13: Optimization Parameters for Open Pit Resource Shell
Parameter Value
Slope Angle (degrees) 43
Mining Cost (US$/t) 1.53
Mining Recovery (%) 100
Mining Dilution Fraction 1
Processing Cost (US$/t) Heap Leaching 3.4
Processing Cost (US$/t) Mill 7.04
Gold Process Recovery (%) Heap Leaching 78
Gold Process Recovery (%) Mill 65
Copper Process Recovery (%) Mill 85
Gold Price (US$/oz) 1,150
Copper Price (US$/lb) 2.50
Gold Selling Cost (US$/oz) 6
Copper Selling Cost (US$/lb) 0.20
The 2010-2011 drilling campaign from Exeter added 6,620 metres of new information,
confirming mineralization and grade continuity. AMEC (2009) defined drill spacing for
achieving Measured and Indicated Mineral Resource classification. From this study AMEC
has concluded:
The Measured Resource criterion (Quarterly 90 % reaching 15 % accuracy) is satisfied
with a drill hole spacing of 75 x 75 m giving a nominal 53 m spacing to farthest sample.
The Indicated Resource criterion (Annually 90 % reaching 15 % accuracy) is satisfied
with a drill hole spacing of 200 x 200 m staggered (with a central hole) that will give a
nominal 100 m spacing to farthest sample.
AMEC created a script to classify blocks into the resource categories. This script verifies
Ordinary Kriging estimation variance, the number of composites and distance of closest
sample used for estimating grades to a block.
AMEC’s criterion for classifying block as Measured is: Three drill holes used and the
closest sample at 53 m or two drill holes used and the closest sample at a maximum
distance of 53 m and the kriging variance associated to a mesh of 75 x 75 m.
AMEC’s criterion for classifying block as Indicated is: Two drill holes used and the closest
sample at 105 m or one drill holes used and the closest sample at a maximum distance of
105 m and kriging variance associated to a mesh of 200 x 200 m (with a central hole).

January, 2011
Caspiche Project
Copiapó, Chile
Blocks that were not classified as Measured or Indicated and have a closest sample at a
maximum distance of 150 m will be placed into the Inferred category.
Because of some inconsistencies with the classification results of the 2010 model for the
MacNeill zone, AMEC used a different approach: Blocks from this zone were selected with
the previous (2010) classification codes and imported to the actual model only Indicated
category blocks. Some of the blocks actually classified as Measured category, according to
the 2011 classification, were overwritten to Indicated, which better represents AMEC’s
opinion for classifying blocks into this specific zone of the deposit.
AMEC addressed the spotted dog feature, common in resource classification based on
mathematical criteria, by running an automated process of smoothing that removed the
isolated blocks or pool of blocks of one category into a different one. Figure 14.21 illustrates
a bench plan, elevation 3,858, before and after the smoothing applied for the classification.
Figure 14.21: Bench Plan Showing Classification Before and After Smoothing
(Source: AMEC, 2011)
500m
Green: Measured; Yellow: Indicated and Red: Inferred
The Caspiche Mineral Resources are defined as the blocks of Measured, Indicated or
Inferred categories that lie within the open pit shell determined by the LG optimization
undertaken by AMEC. Figure 14.22 is a vertical section of gold grades illustrating the open
pit mineral resource shell.

January, 2011
Caspiche Project
Copiapó, Chile
Figure 14.22: Vertical Section (looking Northwest) of Gold Grades Showing Open Pit
Resource Shell (Source: Cube Consulting, 2011)
Au g/t
500m
14.11.1 Gold Equivalent

AMEC calculated a gold equivalent (AuEq) value based on gold and copper revenues
(prices and recoveries involved). The following formula was used to calculate AuEq values
in each block of the model:
PCu $ / lb RCu %
AuEq g / t Au g / t Cu % 0.06857 g lb / oz 10,000
PAu $ / oz R Au %
where Au and Cu are the block kriged Au and Cu grades, PAu and PCu are the Au and Cu
prices (1,150 US$/oz and 2.50 US$/lb, respectively), and RAu and RCu are the Au and Cu
projected metallurgical recoveries, 65 % and 85 % respectively for sulphide material, and 78
% for Au and 11 % for Cu in the oxide zone.
The cut-off is calculated based on the AuEq value and determined for oxide and sulphide
material. Table 14.14 shows the parameters used on the determination of the marginal cut-
off values and results.

January, 2011
Caspiche Project
Copiapó, Chile
Table 14.14: Marginal Cut-off Calculation Parameters and Results
Parameters Oxide Sulphide
Processing (US$/t) Cost 3.4 7.04

Recovery (%) 78 65
Gold Price (US$/oz) 1,150 1,150
Copper Price (US$/lb) NA 2.5
Selling Cost (US$/oz) 6 6
Cut-off AuEq (g/t) 0.119 0.294
The Caspiche Mineral Resources from the open pit shell are reported in Table 14.15 using
an approximation of the marginal cut-off values defined. The cut-off for oxide material was
incremented to 0.18 g/t for consistency with the recent Prefeasibility Study results for the
oxide zone prepared by Aker Solutions. Only mineralized material contained within the shell
is reported.
The Caspiche mineral resource estimates have been classified and reported in accordance
with the CIM guidelines (CIM 2005) National Instrument NI 43-101.
Table 14.15: Super Pit Option for Mineral Resource for Caspiche (Rodrigo Marinho,
P.GEO, 18 August 2011)
Cut-off Volume Tonnes Au Cu Ag AuEq AuEq
Material Category (ppm) (Mm 3) (Mt) (g/t) (%) (g/t) (g/t) (Moz)
OXIDE Measured Au Eq > 0.18 23 56 0.45 0.01 1.72 0.45 0.81
OXIDE Indicated Au Eq > 0.18 21 50 0.37 0.01 1.57 0.37 0.60
OXIDE Inferred Au Eq > 0.18 4 9 0.27 0.01 1.54 0.27 0.1
SULPHIDE Measured Au Eq > 0.3 163 402 0.56 0.22 1.08 0.98 12.67
SULPHIDE Indicated Au Eq > 0.3 346 853 0.49 0.19 1.10 0.84 22.93
SULPHIDE Inferred Au Eq > 0.3 114 277 0.31 0.13 0.88 0.54 4.9
ALL Measured Combined 186 457 0.55 0.20 1.15 0.92 13.48
ALL Indicated Combined 367 903 0.48 0.18 1.12 0.81 23.53
ALL Inferred Combined 117 286 0.31 0.12 0.89 0.54 4.9
Note: Silver included in the Au plus Cu Mineral Resource
AMEC generated grade-tonnage (GT) curves at different gold equivalent cut-offs for different
material types (oxides and sulphides).
Figure 14.23 and Figure 14.24 show grade-tonnage curves for combined Measured and
Indicated oxide and sulphide material respectively based on gold equivalent cutoffs within
the open pit optimization shell.

January, 2011
Caspiche Project
Copiapó, Chile
Figure 14.23: AuEq GT Curves - Open Pit Oxide Measured + Indicated Mineral
Resources (Source: AMEC, 2011)

January, 2011
Caspiche Project
Copiapó, Chile
Figure 14.24: AuEq GT Curves - Open Pit Sulphide Measured + Indicated Mineral
Resources (Source: AMEC, 2011)
The Super Pit scenario involves the southern portion of the pit rim extending beyond Exeter
mining properties limits; however, no mineral resources in this scenario are located outside
the property boundary. The assumption in this mining scenario is that Exeter will be able to
secure permission from the adjacent property owner to extend the pit limit across the
property boundary to allow this additional waste stripping.

January, 2011
Caspiche Project
Copiapó, Chile
15.0 Mineral Reserves Estimate

15.1 Reserve Cases for Each Option
The study considers three options for exploitation and processing of the sulphide ore
resources, and thus three mineral reserve estimates have been generated. The evaluated
options are:
An open pit operation, designated ‘Super Pit case’ extracting 150,000 t/d ore over a project
life of 19 years.
A combined open pit and underground operation, designated ‘Hybrid’, extracting 95,000 t/d
sulphide ore over a project life of 24 years.
For each of the above options a stand alone heap leach operation is considered. This
operation will process heaplecheable oxide and MacNeill ore extracted as part of
prestripping or ongoing mine operations
An underground option, designated ‘Full Underground’, extracting 90,000 t/d sulphide ore for
22 years from year 9 of the project. During construction of the underground mine a heap
leach operation treating both oxide and leachable MacNeill material will be operated
independently.
15.2 Open Pit Mineral Resources
The procedure followed to assess the contained mineral resources used the Whittle® Four-
X economic shell analysis, as described below. The mineral reserves were then defined by
completion of practical designs for the selected shells.
To determine the in-pit mineral resources of the Caspiche Sulphide Project, the resources
have been valued by assuming that the oxide and leachable MacNeill material would be
processed via a heap leach operation to produce gold and silver doré and the sulphide
would be processed in a flotation concentrator plant.
The information for this determination was provided by Aker including an estimate of the
plant operating costs, metallurgical recovery of gold, copper and silver; and refining charges
for both heap leach and sulphide processing.
The mine designs, mining schedules and cost estimates for the pit were developed by NCL,
using their estimates for Mineral Reserves, equipment operating parameters for similar
projects and an in-pit waste crushing and conveying (IPCC) system; the later developed in
conjunction with Sandvik Mining and Construction (SMC).
All resources estimated are inclusive of reserves.
The definitive parameters and results are described in the following sub-sections:
15.2.1 Base Parameters
Table 15.1 summarizes the base case economic parameters used for the Whittle® Four-X
economic shell analysis and mine design.
The mining cost was estimated based on first principle calculations for a remote
conventional open pit mine using a truck and shovel fleet for mining of ore, with costs
adjusted for mining waste based on the results of the IPCC scoping level study completed in
June 2011. Costs include direct operation and maintenance for drilling, blasting, loading,

January, 2011
Caspiche Project
Copiapó, Chile
hauling, waste crushing, conveying and spreading, and support costs related to road, bench,
and dump maintenance as well as grade control. The costs also assumed a full
maintenance and repair contract (MARC) for the first three years of operation, thereafter
maintenance is assumed by owner.
The pit is deep and wide so mining cost was defined as a composition of a fixed portion and
an incremental cost relating to pit depth, both referenced to the pit exit (RL 4300). These
parameters were refined to achieve the expected average in-pit mining cost of 1.32 US$/t
achieved after analysis of the unit cost impact of waste crushing and conveying as an
alternative to trucking. (The original trucking average cost was 1.53 US$/t).
Base cost 1.00 US$/t
Incremental 0.025 US$/t-bench below pit exit, 0.015 US$/t-bench above pit exit
Metal prices, processing costs, refining costs, and processing recoveries were provided to
NCL by Exeter and Aker.

January, 2011
Caspiche Project
Copiapó, Chile
Table 15.1: Base Parameters using Waste Crushing and Conveying

Parameter Unit Super Pit Option Hybrid Option
Base + Depth Base + Depth
Open Pit Mining cost US$ /t Increm. Increm.
Average 1.320 Average 1.40
UG Mining Cost US$/t - 7.0
Oxide Process cost US$/t 3.4 3.4
Gold Met. Recovery % 78 78
Silver Met. Recovery % 34 34
Gold Treatment Cost US$/oz 6 6
Silver Treatment Cost US$/oz 0.4 0.4
MacNeill Process cost US$/t 5.31 5.31
Gold Met. Recovery % Upper 55, Lower 30 Upper 55, Lower 30
Sulphide Process Cost US$/t 7.04 7.04
Variable, Table Variable, Table
Copper Met. Recovery %
15.2 15.2
Variable, Table Variable, Table
Gold Met. Recovery %
15.2 15.2
Copper Treatment Cost US$/lb 0.197 0.197
Royalty Anglo American % 3.08 3.08
Royalty Chilean Government % 5 5
Gold Price US$/oz 1,150 1,150
Silver Price US$/oz 20 20
Copper Price US$/lb 2.5 2.5
The metallurgical recovery of the sulphide process is described in Table 15.2.

January, 2011
Caspiche Project
Copiapó, Chile
Table 15.2: Sulphide Metallurgical Recoveries

0.0% to 0.05% 0 0
0.05% to 0.10% 38% 30%
0.10% to 0.15% 68% 45%
0.15% to 0.20% 81% 58%
0.20% to 0.25% 87% 65%
0.25% to 0.30% 89% 69%
>0.30% >90% to 93% max 72%
15.2.2 Haul Road Widths

For in-pit access, 40 m wide ramps at a 10 % grade were designed to create a network of
haulroads connected throughout the mining sequence. Where possible, two way ramp
access is considered for each operating phase to allow for continuous haulage.
The waste crushing and conveying installations use semi-fixed installations; no on-ramp
conveyors were used and hence no adjustment to haul road widths was necessary.
A typical haul ramp cross section is shown in Figure 15.1.
Figure 15.1: Two way Haul Road Cross-Section
External mine haul roads generally consider a 40 m width and 10 % maximum grade, except
for the main access corridor from the north of the pit, where it was necessary to incorporate
multiple conveyor lines, construction and general traffic access, and limited haulage access
to the mine dump locations. This required a total width of 70.5 m as shown in Figure 15.2.

January, 2011
Caspiche Project
Copiapó, Chile
Figure 15.2: Main Access Corridor Cross-Section
West Conveyor Mine Road North Conveyor Service Road

9m 26m 9m 10m
1.5m 6m 6m 1.5m 1.5m
70.5m
Note in the above figure that the haul road width was reduced to 26 m as the frequency of
waste haulage by truck along this access is minimal.
15.2.3 Pit Slope Angles
The overall slope angles used were as recommended by A. Karzulovic & Asoc. Ltda. (AKL)
as set out in their Caspiche pit stability study of February 2011 and updated in August 2011.
The recommendations are summarized in Table 15.3.
Table 15.3: Slope Design
Geotech Unit IRA Bench Stack Catch Berm Batter Angle

Strat unit Alteration Code ° m m °
Overburden 37 60 40 70
Breccia Strong B-F 43 195 40 70
Brecha Moderate B-M 54 150 40 70
Brecha Weak B-D 54 195 40 70
Intrusive Strong I-F 54 150 40 70
Intrusive Moderate I-M 54 195 40 70
Intrusive Weak I-D 54 195 40 70
Basement Strong M-F 54 195 40 70
Basement Moderate M-M 54 195 40 70
Basement Weak M-D 54 195 40 70

January, 2011
Caspiche Project
Copiapó, Chile
15.2.4 Block Value

Table 15.4 lists the main expressions for costs and taxes used to define the block value.
Table 15.4: Block Value Calculation
Variable Description Calculation
Ton Tonnage by block Volume * SG * topo %

RECAU Gold Met. Recovery
RECCU Copper Met. Recovery
RECAG Silver Met. Recovery
Au Au grade g/t
Cu Cu grade %
Ag Ag grade g/t
IncAu Income Gold t*Au * RECAU * Price_Au * 0.03215
IncCu Income Copper t*Cu * RECCU * Price_Cu * 22.0462
IncAg Income Silver t*Ag * RECAG* Price_Ag * 0.03215
CPROC Process Cost t * CPROC
SELLAU Selling cost Gold t*Au * RECAU * SELLAU * 0.03215
SELLCU Selling cost Copper t*Cu * RECCU * SELLCU * 22.0462
SELLAG Selling cost Silver t*Ag * RECAG * SELLAG * 0.03215
MCOST Mining Cost t * MCOST
RyAng Royalty Anglo American 3.08 % * (IncAu + IncAg)

(IncAu + IncCu + IncAg – MCOST - CPROC –
Profit (1) Profit after Anglo Royalty
SELLAU - SELLCU - SELLAG - RyAng)
RyGvt Royalty Government 5.00 % * Profit (1)
IncAu + IncCu + IncAg – MCOST - CPROC - SELLAU
Profit (2) Profit after Gvmt Royalty - SELLCU - SELLAG – RyGvt – RyAng
15.2.5 Whittle® Pit Optimization

Open pit optimization was completed to obtain a set of nested pit shells to guide the design
of the intermediate phases and ultimate pit for the project. The Lerchs & Grossman
algorithm in the Whittle® software package was used for this optimization. The deliverables
were a set of nested pit shells generated by varying the revenue factor.
Super Pit: In the Super Pit option, the ultimate pit shell was selected from the
recommended ultimate pit generated from a trade-off between the cash flow and the amount
of contained resources.

January, 2011
Caspiche Project
Copiapó, Chile
Hybrid Pit: In the Hybrid option, selection of the ultimate pit considered three criteria:
positive cash flow, an open pit mine life long enough to develop the engineering and
construction of the underground mine and sufficient contained resources to ensure
continuity in the ore feed during the transition to underground exploitation.
In both cases the ore considered for processing in the optimization was selected based on
the economic value of each block. Material was considered as ore if the revenue of the block
exceeded the mining and processing cost. The revenue was based on net gold, copper and
silver prices after refining charges and royalties had been deducted.
Once a minimum economic block value had been established neither a minimum cutoff
grade nor raised cutoff metal grade was applied. Dilution and ore losses were not
considered in this stage for the reasons noted previously.
15.2.6 Whittle® Four-X Economic Shells Results
Only Measured and Indicated resources were used to complete the pit optimization of the
Super Pit and Hybrid options. In the Hybrid option, the underground and open pit
competition mode was considered in the pit optimization process in order to define the
breakeven pit shell.
Table 15.5 and Table 15.6 illustrate the contained ore tonnes and grades by nested pit
series for the Super Pit and Hybrid options respectively.

January, 2011
Caspiche Project
Copiapó, Chile
Table 15.5: Nested Pit Series – Super Pit Option

Gold Ore +
Oxide Ore MacNeill Ore Sulphide Ore Contained Metal
Revenue Price Waste Strip
Pit
Factor Ratio Au Ag Au Ag Au Cu Ag Eq Au
$/oz kt kt kt kt Au Koz Cu kt Ag Koz 7
g/t g/t g/t g/t g/t % g/t Koz
1 0.14 161 36 0.00 36 1.20 3.53 0 0.00 0.00 0 0.00 0.00 0.00 1 0 4 1
2 0.15 173 84 0.00 84 1.16 2.45 0 0.00 0.00 0 0.00 0.00 0.00 3 0 7 3
7 0.20 230 3,521 0.00 3,521 0.84 2.03 0 0.00 0.00 0 0.00 0.00 0.00 95 0 230 99
12 0.25 288 12,459 0.01 12,371 0.71 2.10 0 0.00 0.00 0 0.00 0.00 0.00 284 0 835 298
17 0.30 345 23,372 0.02 22,894 0.63 1.98 0 0.00 0.00 0 0.00 0.00 0.00 463 0 1,457 488
22 0.35 403 42,048 0.09 38,596 0.57 1.86 0 0.00 0.00 90 1.30 0.18 1.25 708 0 2,306 748
27 0.40 460 99,749 0.16 71,014 0.46 1.61 0 0.00 0.00 14,777 0.79 0.26 1.05 1,423 39 4,180 1,682
32 0.45 518 153,267 0.22 89,977 0.42 1.55 91 0.44 1.13 35,712 0.68 0.24 1.05 2,014 87 5,710 2,532
37 0.50 575 1,052,336 1.17 129,751 0.36 1.59 36,062 0.51 1.00 319,026 0.62 0.23 1.07 8,466 730 18,750 12,289
42 0.55 633 1,491,828 1.52 129,802 0.36 1.59 42,851 0.50 1.01 418,797 0.62 0.24 1.08 10,568 990 22,505 15,704
47 0.60 690 1,914,587 1.76 129,802 0.36 1.59 53,604 0.50 1.03 510,228 0.62 0.24 1.08 12,489 1,219 26,132 18,785
52 0.65 748 2,505,624 2.06 129,802 0.36 1.59 67,432 0.49 1.03 622,178 0.61 0.24 1.09 14,805 1,498 30,781 22,518
57 0.70 805 2,816,999 2.20 129,802 0.36 1.59 70,689 0.49 1.04 680,081 0.61 0.24 1.10 15,875 1,639 33,080 24,306
62 0.75 863 3,091,711 2.31 129,802 0.36 1.59 75,132 0.49 1.05 729,421 0.60 0.24 1.11 16,767 1,756 35,149 25,797
67 0.80 920 3,356,363 2.43 129,802 0.36 1.59 76,749 0.49 1.05 773,389 0.59 0.24 1.12 17,503 1,861 36,973 27,064
72 0.85 978 3,724,339 2.60 129,802 0.36 1.59 78,913 0.49 1.05 824,700 0.59 0.24 1.12 18,354 1,990 38,976 28,569
77 0.90 1,035 3,970,738 2.70 129,802 0.36 1.59 81,579 0.49 1.05 860,454 0.58 0.24 1.12 18,932 2,075 40,493 29,579
82 0.95 1,093 4,219,352 2.81 129,802 0.36 1.59 83,219 0.50 1.05 893,076 0.58 0.24 1.13 19,438 2,153 41,820 30,484
87 1.00 1,150 4,378,569 2.88 129,802 0.36 1.59 84,609 0.50 1.05 913,896 0.58 0.24 1.13 19,764 2,200 42,718 31,049
92 1.05 1,208 4,584,198 2.98 129,802 0.36 1.59 85,224 0.50 1.05 935,880 0.57 0.24 1.13 20,081 2,256 43,575 31,653
97 1.10 1,265 4,777,141 3.07 129,802 0.36 1.59 85,793 0.50 1.05 957,129 0.57 0.24 1.13 20,383 2,306 44,444 32,206
7

January, 2011
Caspiche Project
Copiapó, Chile
Table 15.6: Nested Pit Series – Hybrid Option

Gold
Ore + Waste Oxide Ore MacNeill Ore Sulphide Ore Contained Metal
Revenue Price Strip
Pit
Factor Ratio Au Ag Au Ag Au Cu Ag Au Ag Eq Au
$/oz Kt kt kt kt Cu kt 8
g/t g/t g/t g/t g/t % g/t Koz Koz Koz
1 0.14 161 12 0.00 12 1.26 0.86 0 0.00 0.00 0 0.00 0.00 0.00 1 0 0 1
2 0.15 173 61 0.00 61 1.18 2.59 0 0.00 0.00 0 0.00 0.00 0.00 2 0 5 2
7 0.20 230 2,662 0.00 2,662 0.86 2.19 0 0.00 0.00 0 0.00 0.00 0.00 73 0 188 77
12 0.25 288 12,065 0.01 11,998 0.72 2.09 0 0.00 0.00 0 0.00 0.00 0.00 276 0 806 290
17 0.30 345 22,075 0.02 21,702 0.64 2.01 0 0.00 0.00 0 0.00 0.00 0.00 444 0 1,401 468
22 0.35 403 40,164 0.08 37,284 0.57 1.88 0 0.00 0.00 0 0.00 0.00 0.00 684 0 2,249 723
27 0.40 460 74,847 0.14 59,048 0.49 1.68 0 0.00 0.00 6,582 0.87 0.28 1.07 1,121 18 3,412 1,268
32 0.45 518 119,582 0.18 78,725 0.45 1.56 0 0.00 0.00 22,585 0.72 0.26 1.06 1,650 58 4,725 2,010
37 0.50 575 171,871 0.23 94,689 0.42 1.55 273 0.47 1.20 45,258 0.65 0.24 1.03 2,225 107 6,234 2,848
42 0.55 633 225,939 0.28 106,172 0.40 1.56 934 0.49 1.03 69,186 0.62 0.23 1.04 2,742 158 7,696 3,632
47 0.60 690 528,397 0.60 124,888 0.37 1.59 33,875 0.52 1.02 171,075 0.59 0.21 1.07 5,311 361 13,419 7,276
52 0.65 748 672,979 0.74 127,719 0.37 1.59 42,487 0.51 1.03 216,856 0.60 0.21 1.08 6,373 459 15,467 8,841
57 0.70 805 911,062 0.94 129,507 0.36 1.59 51,667 0.51 1.04 287,747 0.60 0.22 1.09 7,934 623 18,434 11,239
61 0.75 863 1,000,006 1.01 129,779 0.36 1.59 54,720 0.50 1.05 312,962 0.60 0.22 1.09 8,470 683 19,489 12,083
65 0.80 920 1,095,090 1.08 129,802 0.36 1.59 59,914 0.50 1.05 337,033 0.60 0.22 1.10 9,015 742 20,584 12,929
70 0.85 978 1,171,130 1.13 129,802 0.36 1.59 63,696 0.50 1.04 355,684 0.60 0.22 1.11 9,425 786 21,433 13,567
74 0.90 1,035 1,325,655 1.25 129,802 0.36 1.59 66,156 0.49 1.05 393,857 0.60 0.22 1.11 10,211 883 22,930 14,842
79 0.96 1,104 1,366,173 1.27 129,802 0.36 1.59 68,776 0.49 1.04 403,970 0.60 0.22 1.11 10,400 904 23,422 15,141
83 1.01 1,162 1,417,780 1.30 129,802 0.36 1.59 71,806 0.49 1.04 415,387 0.60 0.22 1.12 10,633 928 23,977 15,498
86 1.05 1,208 1,514,404 1.37 129,802 0.36 1.59 71,988 0.49 1.04 437,091 0.60 0.23 1.12 11,068 985 24,762 16,221
90 1.10 1,265 1,572,488 1.40 129,802 0.36 1.59 74,767 0.49 1.04 449,507 0.60 0.23 1.12 11,318 1,012 25,326 16,610
8

January, 2011
Caspiche Project
Copiapó, Chile
Based on the overall project economic evaluation completed by Aker Solutions the Super Pit
option provides the best return and is the preferred option for evaluation at feasibility study
level.
All reserves for the Caspiche project have been evaluated for the three options considered,
however those reserves pertaining to the Super Pit option should be given particular
consideration when evaluating the report and its conclusions.
Figure 15.3 illustrates the nested pit series for the Super Pit option as a relationship between
the contained equivalent gold ounces and stripping ratio. For simplicity the equivalent gold
content has been estimated from a relation between metal prices.
Gold prices lower than 410 US$/oz represent the oxide cap. From there to a price of
610 US$/oz, the contained metal increases rapidly with a low stripping ratio. A rapid climb in
the stripping ratio is noted up to a gold price of 750 US$/oz. The rapid increase in the
stripping ratio indicates the progressive expansion of the high wall, where the incremental
ratio is higher than in other zones of the pit and the metal contained below is more
expensive to extract.
Over 750 US$/oz, the contained metal curve becomes gentle and parallel to the stripping
ratio. The stripping ratio represents progressively smaller expansions of the pit around the
main orebody to reach deeper resources.
Figure 15.3: Stripping Ratio Versus Contained Metal – Super Pit Option
35,000 3.50
Contained Equivalent Gold Metal (k Ounces)
30,000 3.00
25,000 2.50
Strip Ratio
20,000 2.00
15,000 1.50
10,000 1.00
5,000 0.50
0 0.00
161
196
230
265
299
334
368
403
437
472
506
541
575
610
644
679
713
748
782
817
851
886
920
955
989
1,024
1,058
1,093
1,127
1,162
1,196
1,231
1,265
Gold Price ($/oz)

Ultimate Pit
Contained Eq Au Metal Strip Ratio
Figure 15.4 illustrates the nested pit series for the Hybrid option with the same relationship
between contained equivalent gold ounces and the stripping ratio.
For every step of the pit, a trade-off against exploitation by underground mining was made
and as a result the change in stripping ratio has the same trend as the contained metal.

January, 2011
Caspiche Project
Copiapó, Chile
Figure 15.4: Stripping Ratio Versus Contained Metal – Hybrid Option

18,000 1.60
Contained Equivalent Gold Metal (k Ounces)
16,000 1.40
14,000
1.20
12,000
1.00
Strip Ratio
10,000
0.80
8,000
0.60
6,000
0.40
4,000
2,000 0.20
0 0.00
161
196
230
265
299
334
368
403
437
472
506
541
575
610
644
679
713
748
782
817
863
897
943
978
1,024
1,058
1,104
1,139
1,185
1,231
Gold Price ($/oz)
Ultimate Pit
Contained Eq Au Metal Strip Ratio
The ore tonnes reported within the ultimate pits are composed of oxide, MacNeill and
sulphide material. The oxide tonnage is similar for the Super Pit and Hybrid options: 130 Mt
of ore with average gold and silver head grades of 0.36 g/t and 1.59 g/t, respectively.
The Super Pit option contains 893 Mt of sulphide ore with average gold, copper and silver
head grades of 0.58 g/t, 0.24 % and 1.13 g/t, respectively. The Hybrid option pit contains
415 Mt of sulphide ore with average gold, copper and silver head grade of 0.60 g/t, 0.22 %
and 1.12 g/t, respectively.
The MacNeill ore tonnes in the Super Pit option are 83 Mt with average gold and silver head
grades of 0.50 g/t and 1.05 g/t, respectively. In the Hybrid option, the ore tonnage amounts
to 72 Mt with average gold and silver head grades of 0.49 g/t and 1.04 g/t, respectively.
Table 15.7 summarizes the ore tonnes and grades for each option.
Table 15.7: Ultimate Pit Shells Contained Reserves

Total
Oxide Ore MacNeill Ore Sulphide Ore Waste Contained Metal
Rock
Option Eq
Au Ag Au Ag Au Cu Ag Au Cu Ag
Mt Mt Mt Mt Mt Au9
g/t g/t g/t g/t g/t % g/t (Moz) (Mt) (Moz)
(Moz)
Super
130 0.36 1.59 83 0.50 1.05 893 0.58 0.24 1.13 3,113 4,219 19.4 2.2 41.8 30.5
Pit
Hybrid 130 0.36 1.59 72 0.49 1.04 415 0.60 0.22 1.12 801 1,418 10.6 0.9 24.0 15.5
Figure 15.5 illustrates the ultimate pit shell for both options.
9

January, 2011
Caspiche Project
Copiapó, Chile
Figure 15.5: Optimal Pit Shells
15.2.7 Full Underground – Oxide and MacNeill Pits

The Full Underground option considers the early development of the heap leaching of the
oxide and MacNeill ores by a Stand Alone open pit exploitation. This stand alone operation
is largely based on the Prefeasibility Study: Oxide Standalone Project submitted by Exeter
on Sedar (www.sedar.com) on 8th June 2011. Due to the incorporation of MacNeill ore the
heap leach operation will have a longer operational life and will require minor modifications
to the crushing and ADR circuit as well as process changes to accommodate the copper
content within the MacNeill ore.
A set of key parameters have been defined for this alternative. These were used as a basis
for pit optimization, mine design, mine planning and cost estimation. The final values are
listed in Table 15.8.
Table 15.8: Key Parameters for the Heap Leach Open Pit Optimization
Parameter Unit Oxides MacNeill
Base + Depth Increm.

Mining cost $/t
Average 1.40
Process cost $/t 3.40 5.31
Upper 55
Gold Met. Recovery % 78
Lower 30
Gold Treatment Cost $/oz 6
Silver Treatment Cost $/oz 0.4
Royalty Anglo American % 3.08
Royalty Chilean Gvmt. % 5
Gold Price $/oz 1,150
Silver Price $/oz 20

January, 2011
Caspiche Project
Copiapó, Chile
Figure 15.6 illustrates the nested pit series for the heap leach open pit option as a
relationship between the contained equivalent gold ounces and stripping ratio. For simplicity
the equivalent gold content has been estimated from a relation between metal prices.
Figure 15.6: Stripping Ratio Versus Contained Metal – Heap Leach Stand Alone (Full
Underground option)
The ore tonnes reported within the ultimate pits are composed of oxide and MacNeill only.
The oxide tonnage is lower than the Super Pit and Hybrid options. MacNeill tonnage is in the
same range. From a price of 414 US$/oz to 874 US$/oz, the contained metal increases
rapidly with a low stripping ratio. A rapid climb in the stripping ratio and contained metal is
noted up to a gold price of 932 US$/oz.
Table 15.9 and Figure 15.7 illustrate the Whittle results for the pit optimizations based on
these criteria.
Table 15.9: Ultimate Heap Leach Pit Shell – Underground Option

Total
Oxide Ore MacNeill Ore Waste Contained Metal
Full Rock
Underground
Option Mt Au g/t Ag g/t Mt Au g/t Ag g/t Mt Mt Au (Moz) Ag (Moz)
Heap leach
112 0.39 1.57 74 0.55 1.12 151 337 2.70 8.29
Pit

January, 2011
Caspiche Project
Copiapó, Chile
Figure 15.7: Optimal Heap Leach Pit
The optimal pit for the heap leach operation contains a total of 186 Mt of ore with a gold and
silver average grade of 0.45 g/t and 1.39 g/t respectively.
15.3 Open Pit Mineral Reserves
Using the ultimate pit shells as a starting point, practical pit designs which incorporate
access and logical development using phases identified from intermediate Whittle shells
were completed.
15.3.1 Final Pit Designs
A set of nested pit shells was obtained from the pit optimization and used as guides for the
design of the intermediate phases and ultimate pit. The general design parameters used in
the detailed pit design are those listed previously. Other parameters are listed below.
15.3.1.1 Super Pit and Hybrid Pit
The bench height used for design is 15 m, matching the block height and the selected
loading equipment.
The slope parameters used for pit design were those recommended by AKL and
described in the previous section (see Table 15.3). The actual slope angle input into
Whittle was adjusted to include the anticipated number of access ramps in each wall
generated from earlier studies. This ensured that practical pit designs closely
approximated the Whittle shell used for defining ore reserves and the ultimate pit.
A pushback width of 120 m was considered to provide space for two rope shovels and
access for haulage and support equipment onto the bench. A minimum of 100 m was
accepted to meet scheduling constraints, with one rope shovel digging area and good
accessibility for hauling and other services.

January, 2011
Caspiche Project
Copiapó, Chile
The pit designs consider double exits on the west and north side of the pit providing
access to the primary ore and waste crushers, to the leach pad and leach pad stockpiles
and to the waste dumps.
15.3.1.2 Oxide/MacNeill Pit (Within the Full Underground Option)
The bench height used for design is 15 m, matching the block height and the selected
loading equipment.
The slope parameters used for pit design were those recommended by AKL for the
Hybrid and Super Pit options.
For in-pit access, 26 m wide ramps at a 10 % grade were designed
A pushback width of 80 m was considered to provide space for loading equipment and
access for haulage and support equipment onto the bench.
Figure 15.8, Figure 15.9, and Figure 15.10 show the final pit design of the Super Pit, Hybrid,
and Oxide/McNeill pit options respectively.
Note that in Figure 15.8, an in-pit platform for the establishment of four in-pit waste crushers
is incorporated during the life of the mine. The location of this platform was established
during the scoping level in-pit crushing studies completed in June 2011 by NCL, and
optimized during this study. The in-pit crushing elements are discussed in more detail in
Section 16.

January, 2011
Caspiche Project
Copiapó, Chile
Figure 15.8: Final Pit Design – Super Pit IPCC Option
Figure 15.9: Final Pit Design – Hybrid Option

January, 2011
Caspiche Project
Copiapó, Chile
Figure 15.10: Final Pit Design – Oxide/McNeill Pit: Full Underground Option
15.3.2 Mining Phases Design

The integration of the pit optimization shells with practical access considerations provided
the input to design a series of practical mining phases.
In the Super Pit option, the defined pit was divided into sixteen phases based on optimized
nested pit shell guidance: gold and copper grade, strip ratio and the ability to access the pit.
Numbering of phases includes non-operational Whittle cones, for this reason operational
phases are not correlative. Significant milestones during the life of the pit are:
Phase 0 targets the most profitable area of oxide ore and gives an alternative for early
production of oxide ore while overall pre-stripping is developed.
Phases 1 and 2 target the shallow sulphide ore and continued mining of the oxide and
MacNeill ore.
Phases 3 to 7 progressively enlarge the pit by splitting the northeast and southwest
phases of the 120 m wide pushbacks to achieve a balanced stripping ratio in the mine
schedule.
Phase 9 contains the development of the in-pit crushing stations for the relocation of the
pit-rim waste crushers, and the associated conveyor ramp.
Phase 11 onwards enlarge the pit by 120m wide pushbacks to complete the final pit.
In the Hybrid option, the defined pit has been divided into eight mining phases based on
optimized nested pit shell guidance. The mining sequence is similar to the Super Pit option,
however the final pit is smaller and no in-pit crusher platform is required.

January, 2011
Caspiche Project
Copiapó, Chile
Figure 15.11 and Figure 15.12 illustrate examples of the mining sequence of the Super Pit
and the Hybrid option, respectively. Each individual mining phase is represented as one
bench.
Figure 15.11: Mining Sequence – Super Pit Option – Bench 4210

January, 2011
Caspiche Project
Copiapó, Chile
Figure 15.12: Mining Sequence – Hybrid Option – Bench 4240
The heap leach stand alone pit has been developed in five mining phases, three containing
oxide material and two additional phases containing MacNeill material:
Phase 1 targets the most profitable area in the center part of the pit. This phase contains
oxide material only.
Phase 2 mines the eastern part of the pit. This phase maintains the same shallow and
wide characteristics of Phase 1. Phase 2 has greater resources than Phase 1, but with a
lower gold grade. This phase contains oxide material only.
Phase 3 expands to the west area of the pit. Similar grades and strip ratio to those of
Phase 2 are obtained. This phase contains oxide material only
Phase 4 continues expanding to the south west and increases pit depth Most of the ore
corresponds to MacNeill material. Grades are better but at a higher strip ratio than
previous phases.
Phase 5 mines the south western part of the pit. More than 99 % of the ore contained in
Phase 5 is MacNeill. Grades and strip ratio are similar to Phase 4.
Figure 15.13 illustrates the mining sequence and final pit.

January, 2011
Caspiche Project
Copiapó, Chile
Figure 15.13: Mining Sequence – Heap Leach Pit - Bench 4300

January, 2011
Caspiche Project
Copiapó, Chile
15.3.3 Comparison of Pit Designs and Optimized Shells

15.3.3.1 Super Pit
The optimized pit shells and ultimate pit design volumetrics for the Super Pit option are
compared in Table 15.10. The two shapes are shown graphically in Figure 15.14.
The ultimate pit design, although slightly bigger, fits well within the Whittle® optimized pit
shell. Total material increased by 6 % due to the irregular shape of the bottom of the pit and
minor deviations of the practical pit design overall slope angles. In addition, there are small
increases in the pit volume to accommodate the in-pit crusher stations and the conveyor
ramp to remove crushed waste.
Ore quantities and contained metal are practically the same; differences are within an
acceptable range.
Table 15.10: Super Pit Option – Design Versus Ultimate Pit Shell Comparison
Ultimate Mine Difference
Item
Shell Design (%)
Oxide Ore (Mt) 130 130 0
Gold Grade (g/t) 0.36 0.36 0
Silver Grade (g/t) 1.59 1.59 0
MacNeill Ore (Mt) 83 84 1
Gold Grade (g/t) 0.50 0.50 0
Sulphide Ore (Mt) 893 889 0
Gold Grade (g/t) 0.58 0.58 0
Copper Grade (%) 0.24 0.24 -1
Contained Gold Metal (M oz) 19.4 19.4 0
Contained Copper Metal (M t) 2.2 2.1 -1
Contained Silver Metal (M oz) 16.4 16.3 0
Total Ore + Waste (Mt) 4,219 4,486 6
Strip Ratio 3.1 3.4 9

January, 2011
Caspiche Project
Copiapó, Chile
Figure 15.14: Super Pit Option – Plots of Ultimate Pit Shell Compared to Mine Design
15.3.3.2 Hybrid Pit

The optimized pit shells and ultimate pit design volumetrics for the Hybrid option are
compared in Table 15.11. The two shapes are shown graphically in Figure 15.15. The
ultimate pit design, although slightly bigger, fits well within the Whittle® optimized pit shell.
Total material increases by 4 % due to additional ramps which produce a deviation of the
overall pit wall angle.
Ore quantities and contained metal show a 2 % difference. These differences are within an
acceptable range.

January, 2011
Caspiche Project
Copiapó, Chile
Table 15.11: Hybrid Option – Design Versus Ultimate Pit Shell Comparison
Ultimate Mine Difference
Item
Shell Design (%)
Oxide Ore (Mt) 130 130 0
Gold Grade (g/t) 0.36 0.36 0
MacNeill Ore (Mt) 72 74 3
Gold Grade (g/t) 0.49 0.49 0
Sulphide Ore (Mt) 415 417 0
Gold Grade (g/t) 0.60 0.59 -1
Copper Grade (%) 0.22 0.22 -1
Contained Gold Metal (M oz) 10.6 10.6 0
Contained Copper Metal (M t) 0.9 0.9 0
Contained Silver Metal (M oz) 12.0 12.1 1
Total Ore + Waste (Mt) 1,418 1,506 6
Strip Ratio 1.6 1.8 10
Figure 15.15: Hybrid Option – Plots of Ultimate Pit Shell Compared to Mine Design

January, 2011
Caspiche Project
Copiapó, Chile
15.3.3.3 Oxide and MacNeill Pit

The optimized pit shell and ultimate pit design volumetrics for the heap leach stand alone pit
are compared in Table 15.12. The two shapes are shown graphically in Figure 15.16.
Table 15.12: Heap Leach Stand Alone Pit - Design Versus Ultimate Pit Shell
Comparison
Item
Ultimate Shell Mine Design Difference
Oxide Ore (Mt) 113,6 111,7 -2%

Gold Grade (g/t) 0,389 0,387 -0%
Silver Grade (g/t) 1,563 1,567 0%
MacNeill Ore (Mt) 74,1 73,7 -1%
Gold Grade (g/t) 0,559 0,555 -1%
Silver Grade (g/t) 1,132 1,124 -1%
Contained Gold Metal (M oz) 2.753 2.704 -2%
Contained Silver Metal (M oz) 8.411 8.288 -2%
Total Ore + Waste (Mt) 328,8 336,1 2%
Strip Ratio 0,75 0,81 8%
Ore quantity indicates a 1.3 % difference, but since contained metal is only 1.8 % lower in
the designed pit, all the differences are considered as being within acceptable ranges.
Figure 15.16: Oxide/MacNeill Pit – Plots of Ultimate Pit Shell Compared to Mine
Design
15.3.4 Tabulation of Contained Ore within Final Pit Designs

Table 15.13 summarizes the contained tonnes and grade of ore for the final pit design and
individual mining phases for the Super Pit option. The contained ore tonnes for the Hybrid
option are summarized in Table 15.14. Both tables consider a profit zero cut-off grade. The
ore tonnes in the tables consider Measured and Indicated resources (M+I) only.

January, 2011
Caspiche Project
Copiapó, Chile
Table 15.13: Super Pit Option – Contained Ore Tonnes and Grade by Phase
Oxide Ore MacNeill Ore Sulphide Ore Waste Total Rock Contained Metal
Strip Eq
Pit Au Ag Au Ag Au Cu Ag Au Cu Ag
Mt Mt Mt Mt Mt Ratio Au10
(g/t) (g/t) (g/t) (g/t) (g/t) (%) (g/t) (Moz) (Mt) (Moz)
(Moz)
F00 33 0.33 2.07 0 0.00 0.00 1 0.39 0.12 1.66 20 54 0.59 0.4 0.0 2.3 0.4
F01 21 0.25 1.82 0 0.50 1.07 14 0.43 0.15 1.34 95 130 2.73 0.4 0.0 1.8 0.5
F02 36 0.42 1.58 0 0.43 0.74 32 0.59 0.23 1.10 14 82 0.21 1.1 0.1 3.0 1.5
F03 20 0.43 1.18 1 0.38 1.13 48 0.57 0.22 1.04 157 225 2.32 1.2 0.1 2.4 1.7
F05 15 0.40 0.98 8 0.43 0.94 53 0.65 0.23 0.96 76 151 1.12 1.4 0.1 2.3 2.0
F06 5 0.33 0.97 5 0.51 0.70 51 0.62 0.22 0.96 81 142 1.46 1.2 0.1 1.8 1.7
F07 0 0.18 1.06 13 0.52 1.22 76 0.58 0.24 1.11 291 381 3.79 1.6 0.2 3.2 2.6
F09 0 0.24 0.86 25 0.51 1.00 103 0.65 0.24 1.20 330 459 3.19 2.6 0.3 4.8 3.9
F11 0 0.00 0.00 0 0.29 0.46 68 0.62 0.27 0.92 406 474 5.97 1.4 0.2 2.0 2.3
F13 0 0.00 0.00 18 0.45 1.07 86 0.56 0.22 1.24 205 309 2.39 1.8 0.2 4.0 2.8
F14 0 0.00 0.00 0 0.00 0.00 85 0.63 0.28 1.00 512 597 6.03 1.7 0.2 2.7 2.9
F15 0 0.00 0.00 14 0.53 1.13 273 0.52 0.24 1.25 1,195 1,482 4.38 4.8 0.7 11.5 8.1
Total 130 0.36 1.59 84 0.50 1.05 889 0.58 0.24 1.13 3,383 4,486 3.32 18.0 2.1 39.0 30.0
10

January, 2011
Caspiche Project
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Table 15.14: Hybrid Option – Contained Ore Tonnes and Grade by Phase
Oxide Ore MacNeill Ore Sulphide Ore Waste Ore + Waste Contained Metal
Strip Eq
Pit Au Ag Au Ag Au Cu Ag Au Cu Ag
Mt Mt Mt Mt Mt Ratio Au11
(g/t) (g/t) (g/t) (g/t) (g/t) (%) (g/t) (Moz) (Mt) (Moz)
(Moz)
F00 33 0.33 2.07 0 0.00 0.00 1 0.39 0.12 1.66 20 54 0.59 0.4 0.0 2.3 0.4
F01 21 0.25 1.82 0 0.50 1.07 14 0.43 0.15 1.34 95 130 2.73 0.4 0.0 1.8 0.5
F02 36 0.42 1.58 0 0.43 0.73 32 0.60 0.23 1.10 15 83 0.21 1.1 0.1 3.0 1.5
F03 17 0.42 1.21 1 0.39 0.88 57 0.55 0.22 1.03 160 234 2.16 1.2 0.1 2.5 1.9
F04 14 0.44 1.00 10 0.44 0.99 48 0.61 0.23 0.99 68 140 1.09 1.3 0.1 2.3 1.9
F05 8 0.33 0.94 8 0.51 0.74 58 0.66 0.22 0.93 80 153 1.21 1.4 0.1 2.2 2.1
F06 0 0.17 0.96 2 0.53 0.62 75 0.62 0.24 1.16 192 270 2.53 1.5 0.2 2.9 2.4
F07 0 0.20 1.09 53 0.50 1.12 132 0.58 0.22 1.25 256 442 1.93 3.3 0.3 7.2 4.8
Total 130 0.36 1.59 74 0.49 1.04 417 0.59 0.22 1.12 885 1,506 1.62 10.6 0.9 24.2 15.5
Table 15.15: Oxide/MacNeill Pit – Contained Ore Tonnes and Grade by Phase (Full Underground Option)
Oxide Ore McNeill Leached Ore Waste Total Rock
Phase
Kt Au g/t Ag g/t Kt Au g/t Ag g/t kt kt
F01 15 0.64 1.71 0 15

F02 66 0.35 1.60 20 86
F03 23 0.38 1.35 12 35
F04 8 0.25 1.72 37 0.52 0.94 66 110
F05 0 0.20 1.00 37 0.59 1.31 52 89
Total 112 0.39 1.57 74 0.55 1.12 151 336
11

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Caspiche Project
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As noted in 15.2.6 the Super Pit option is the preferred alternative to be developed to
feasibility study level. As such particular consideration of Table 15.13 should be made when
evaluating the project.
15.3.5 Dilution and Ore Losses

The resource model block size of 25 m long, 25 m wide and 15 m high, is commensurate
with the orebody variability and scale of operation. There is no requirement for any mining
dilution factor due to the low grade variance, especially near cut-off grades.
The equipment chosen for the project will have more than sufficient capability to mine at
selective mining units (SMU’s) of much smaller sizes than the current block size. Therefore,
neither dilution nor ore losses are considered.
15.3.6 Statement of Open Pit Mineral Reserves

From the contained ore tonnages in the designs, a cut-off value of 0.49 US$/t, to cover re-
handle costs, was applied for the oxides and MacNeill material. The open pit proven and
probable reserves for each option are presented in Table 15.16.
Table 15.16 Open Pit Proven and Probable Mineral Reserves (Carlos Guzman, CChM,
October 2011)
Open Pit Mineral Proven and Probable Mineral
Reserves
Option Oxide Ore MacNeill Ore Sulphide Ore
Au Ag Au Cu Ag Au Cu Ag
Mt Mt Mt
g/t g/t g/t % g/t g/t % g/t
Super Pit 124 0.38 1.62 78 0.51 0.07 1.05 889 0.58 0.24 1.13
Hybrid 124 0.38 1.62 70 0.50 0.07 1.05 417 0.59 0.22 1.12
Full UG 112 0.39 1.57 74 0.55 0.11 1,12
The contained ore tonnes listed in Tables 15.13, 15.14 and 15.15 above represent in-pit
reserves in practically designed open-pits. However in the case of Oxide and MacNeill
mineralization, mine scheduling to allow access to sulphide material at the earliest practical
date results in the need to mine and stockpile these two ore types on surface and reclaim
them later for processing. The additional cost of re-handling this material were estimated at
0.49 US$/tonne and as a result, in the Super Pit option, approximately 6Mt of oxides and 2
Mt MacNeill did not deliver sufficient value to cover this additional cost, and have been
dropped from final Reserves quoted in 15.16.
The Super Pit option is the preferred alternative to be developed to feasibility study level. As
such particular consideration of Table 15.16 should be made when evaluating the project.
15.4 Underground Mineral Reserves

The definition of the underground mineral reserves was performed assuming that a block
caving method can be applied to the Caspiche deposit.

January, 2012
Caspiche Project
Copiapó, Chile
Preliminary geotechnical studies of the rock mass were completed to establish ‘caveability’
and fragmentation for a block caving method. From the current available information, the
studies indicate the rock is not significantly different from primary rock in other porphyry
copper deposits in Chile currently using this method (e.g. El Salvador, Andina, El Teniente).
The estimate of mineral reserves for block caving requires the inclusion of material with
lower than the economic grade limit that cannot be separated and must be sent to the plant
with the rest of the ore (dilution).
Figure 15.17 shows schematically the blending process within the ore column the process of
block valuation. A diluted grade model was generated with the same block definition as the
in situ model, the diluted grades resulting from blending the material of the blocks that form
the ore column. Each block was assigned a new grade value, without discriminating
fractions of ore and waste within these units.
The Laubscher dilution model was applied to calculate the diluted model, considering a 60
% Dilution Entry Point (DEP). Following current industry practice a maximum ore column
height of 500 m was also applied. The grade of the waste material in the blend was
assumed as zero.
Figure 15.17: Dilution & Economic Column Calculation

-90
-20
Dilution Cut off criteria
30
Revenue >= 0
50
Ore 80
160
200
Undercut Level
In situ Nivel
Block de
Model Diluted Nivel
Block de
Model 150
Valuation
120
100
The cut-off criteria used to determine the ore/waste limit was the maximum cumulative profit
of the ore column, such that every block that added value to the ore column was included
until the total ore column profit was maximized. Blocks above that limit were considered as
waste and not included as part of the mineable reserves. The economic parameters used for
the determination of the mineable reserves are summarized in Table 15.17.

January, 2012
Caspiche Project
Copiapó, Chile
Table 15.17: Economic Parameters for Underground Mineable Reserves

Parameter Unit Value
UG Mining Cost US$/t 7.0
Sulphide Process Cost US$/t 7.04
Copper Met. Recovery % Variable, Table 15.2
Gold Met. Recovery % Variable, Table 15.2
Silver Met. Recovery % 50
Copper Treatment Cost US$/lb 0.197
Gold Treatment Cost US$/oz 6
Silver Treatment Cost US$/oz 0.4
Royalty Anglo American % 3,08
Royalty Chilean Government % 5
Gold Price US$/oz 1150
Silver Price US$/oz 20
Copper Price US$/lb 2.5
An analysis of the best elevations to locate the undercut levels was carried out considering
that the upper part of the deposit will be mined by open pit methods.
The results for the underground portion of the Hybrid option are presented in Table 15.18:
Table 15.18: Hybrid Option – Mineral Reserves (Carlos Guzman, CChM, October
2011)
UG Mine - Sulphide Ore Contained Metal
Undercut Level Au Ag Eq Au12
Mt Au (g/t) Cu (%) Ag (g/t) Cu (Mt)
(Moz) (Moz) (Moz)
UC 3400 242 0.70 0.33 1.29 5.5 0.8 10.0 9.5
The best value was obtained with undercut level located at RL 3400. For this case the
diluted mineable underground reserves are 242 Mt of ore with an average grade of 0.70 g/t
Au and 0.33 % Cu. The total area of the mining footprint is 206,322 m2.
Figure 15.18 illustrates the relative position of the undercut level in relation to the pit limit.
12

January, 2012
Caspiche Project
Copiapó, Chile
Figure 15.18: Hybrid Option – Undercut Level
The same exercise was carried out for the Full Underground option, using the same
technical and economic parameters as the Hybrid case. An initial analysis was performed,
considering natural topography, for the best elevations to locate the undercut levels.
The best values were obtained with undercut levels located at RL 3655, RL 3505 and RL
3190. For this case the diluted underground mineable reserves are 401 Mt of ore with an
average grade of 0.69 g/t Au and 0.30 % Cu. The total area of the mining footprint is
356,875 m2. The results are summarized in Table 15.19.

January, 2012
Caspiche Project
Copiapó, Chile
Table 15.19: Full Underground Option – Mineral Reserves at different Undercut

Levels (Carlos Guzman, MAUSIMM, October 2011)
UG Mine - Sulphide Ore Contained Metal
Undercut Level Au Ag Eq Au13
Mt Au (g/t) Cu (%) Ag (g/t) Cu (Mt)
(Moz) (Moz) (Moz)
UC 3655 78 0.63 0.23 1.41 1.6 0.2 3.5 2.5
UC 3505 270 0.75 0.32 1.21 6.5 0.9 10.5 10.8
UC 3190 53 0.51 0.28 1.39 0.9 0.1 2.4 1.6
Total 401 0.69 0.30 1.27 8.9 1.2 16.4 15.0
Figure 15.19 illustrates the relative position of the undercut levels considering natural
topography.
Figure 15.19: Full Underground Option – Undercut Levels
These contained reserves are the basis for the mine design and production schedule.
15.4.1 Underground Mineral Reserves
The estimate of proven and probable reserves for block caving requires the inclusion of
material with lower than the economic grade limit that cannot be separated and must be sent
to the plant with the rest of the ore.
The underground reserves for each option are presented in Table 15.20.
13

January, 2012
Caspiche Project
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Table 15.20: Underground Proven and Probable Mineral Reserves (Carlos Guzman,
CChM, October 2011)
Underground Mineral Reserves - Sulphide Ore
Option
Mt Au (g/t) Cu (%) Ag (g/t)
Super Pit
Hybrid 242 0.70 0.33 1.29
Full UG 401 0.69 0.30 1.27
The previous figures include 3 Mt of waste material for the Hybrid option and 14 Mt of waste
material for the Full Underground option. That material corresponds to dilution in the block
cave method and its grade has been assumed as zero.
15.5 Reportable Mineral Reserves Statement by Scenario
Table 15.21 to 15.23 summarize the proven and probable reserves derived from the
measured and indicated resources for all three mining options. As the Super Pit option is the
preferred alternative to be developed to feasibility study level, particular attention should be
taken in Table 15.21 and the assumptions there under.
NCL considers the measured and indicated mineral resource, contained within the open pit
and the underground design mineral reserve to be estimated in accordance with the CIM
definitions.
Table 15.21: Super Pit Case - Mineral Reserves (Carlos Guzman, CChM, October
2011)
Super Pit
Contained Metal
Proven 62 0,42 1,71 4 0,46 0,08 0,70 321 0,62 0,26 1,10 7,3 0,8 14,8
Probable 62 0,33 1,52 74 0,51 0,07 1,08 568 0,55 0,23 1,15 11,9 1,3 26,6
Total 124 0,38 1,62 78 0,51 0,07 1,05 889 0,58 0,24 1,13 19,3 2,1 41,5

1. Mineral Reserves are defined within a mine plan with pit phase designs guided by Lerchs-
Grossman (LG) pit. The LG shell generation was performed on Measured and Indicated materials
only, using a gold price of 1,150 US$/oz, a silver price of 20 US$/oz and a copper price of 2.5
US$/lb, a base mining cost of 1.00 US$/t with incremental of 0.025 US$/t per 15 m bench below the
pit exit and 0.015 US$/t per 15 m bench above the pit exit. Processing and treatment costs used
were 3.40 US$/t of ore and 6 US$/oz of gold and 0.4 US$/oz of silver for oxides, 5.31 US$/t and 6
US$/oz of gold and 0.4 US$/oz of silver for MacNeill and 7.04 US$/t and 6 US$/oz of gold and 0.4
US$/oz of silver for sulphides. Royalties of 3.08 % and 5 % were also applied. Metallurgical
recoveries for oxides were 78 % for gold and 34 % for silver. Metallurgical recoveries for MacNeill
were 55 % for gold in the upper layers and 30 % in the lower layers and 20 % for silver. Silver
metallurgical recovery for sulphides was 50 %. Copper and gold metallurgical recovery for

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0.0% to 0.05% 0 0
0.05% to 0.10% 38% 30%
0.10% to 0.15% 68% 45%
0.15% to 0.20% 81% 58%
0.20% to 0.25% 87% 65%
0.25% to 0.30% 89% 69%
>0.30% >90% to 93% max 72%

8. The life of mine strip ratio is 3.11
Table 15.22: Hybrid Case - Mineral Reserves (Carlos Guzman, CChM, October 2011)

Contained Metal
Proven 62 0,42 1,71 4 0,46 0,08 0,70 273 0,65 0,27 1,13 6,6 0,7 13,4
Probable 62 0,33 1,52 65 0,51 0,07 1,07 387 0,62 0,25 1,21 9,4 1,0 20,4
Total 124 0,38 1,62 70 0,50 0,07 1,05 660 0,63 0,26 1,18 16,0 1,7 33,8
Hybrid Case Reserves Notes:

1. Mineral Reserves for the open pit are defined within a mine plan with pit phase designs guided by
Lerchs-Grossman (LG) pit. The LG shell generation was performed on Measured and Indicated
materials only, using a gold price of 1,150 US$/oz, a silver price of 20 US$/oz and a copper price of
2.5 US$/oz, a base mining cost of 1.00 US$/t with incremental of 0.025 US$/t per 15 m bench
below the pit exit and 0.015 US$/t per 15 m bench above the pit exit. Processing and treatment
costs used were 3.40 US$/t of ore and 6 US$/oz of gold and 0.4 US$/oz of silver for oxides, 5.31
US$/t and 6 US$/oz of gold and 0.4 US$/oz of silver for MacNeill and 7.04 US$/t and 6 US$/oz of
gold and 0.4 US$/oz of silver for sulphides. Royalties of 3.08 % and 5 % were also applied.
Metallurgical recoveries for oxides were 78% for gold and 34 % for silver. Metallurgical recoveries
for MacNeill were 55 % for gold in the upper layers and 30 % in the lower layers and 20 % for silver.
Silver metallurgical recovery for sulphides was 50 %. Copper and gold metallurgical recovery for

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0.0% to 0.05% 0 0
0.05% to 0.10% 38% 30%
0.10% to 0.15% 68% 45%
0.15% to 0.20% 81% 58%
0.20% to 0.25% 87% 65%
0.25% to 0.30% 89% 69%
>0.30% >90% to 93% max 72%
Table 15.23: Full Underground Case Case - Mineral Reserves (Carlos Guzman,
CChM, October 2011)
Full Underground
Contained Metal
Proven 57 0,43 1,69 7 0,47 0,11 0,82 158 0,72 0,31 1,22 4,5 0,5 9,5
Probable 55 0,34 1,44 67 0,56 0,11 1,16 243 0,67 0,29 1,30 7,0 0,7 15,1
Total 112 0,39 1,57 74 0,55 0,11 1,12 400 0,69 0,30 1,27 11,6 1,2 24,6

1. Mineral reserves for the block cave in the underground mine were defined using the Laubscher
dilution model, considering a 60 % Dilution Entry Point and a maximum ore column height of 500 m.
The grade of the waste and inferred material was assumed as zero. Only sulphides material was
considered as economical. The economic parameters used for the determination of reserves were a
gold price of 1,150 US$/oz, a silver price of 20 US$/oz and a copper price of 2.5 US$/oz, an
average mining cost of 7.0 US$/t. Processing and treatment costs used were 7.04 US$/t and 6
US$/oz of gold and 0.4 US$/oz of silver. Royalties of 3.08 % and 5 % were also applied. Silver
metallurgical recovery for sulphides was 50 %. Copper and gold metallurgical recovery was a
function of the head grade, defined as:

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0.0% to 0.05% 0 0
0.05% to 0.10% 38% 30%
0.10% to 0.15% 68% 45%
0.15% to 0.20% 81% 58%
0.20% to 0.25% 87% 65%
0.25% to 0.30% 89% 69%
>0.30% >90% to 93% max 72%

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16.0 Mining methods

16.1 Operating Parameters and Criteria
The mine is scheduled to work 360 d/yr. Each day will consist of two 12 hour shifts and one
meal break per shift. The mining operations will include; drilling, blasting, loading and
hauling of ore and waste; crushing, conveying and spreading of waste, grade control and
equipment maintenance.
The Super Pit and Hybrid open pit operations consider 15 m benches, 40 m haul roads at a
maximum gradient of 10 %, a mobile equipment fleet of electric rope shovels, diesel
powered trucks, drills and auxiliary equipment. Gyratory crushers, conveyors and mobile
spreaders will be used to crush, convey and place the waste.
The underground mine considers owner’s load, haul, dumpers (LHD´s), haul trucks, drills
and auxiliary equipment, as well as underground crushing and conveying systems. In each
of the options analysed the heap leach open pit operations use an owner´s mining and
hauling fleet as detailed in Section 16.7.
The selected mining equipment is able to develop the required productivity and achieve the
annual total material movement at accepted levels of availability.
16.2 Open Pit Mine Design
In all cases, the pit designs have been based on normal open pit design parameters, for the
environment in Chile. The only variation in the designs occurs when In-pit crushing and
conveying (IPCC) installations are located inside of the pits. This only occurs in the Super
Pit option, and required the incorporation of an inclined conveyor ramp to carry the crushed
waste to the surface. An alternative would be to develop a tunnel to convey the material to
surface.
16.3 Underground Mine Design
A typical mine layout has been assumed for the proposed block caving operation. A detailed
design of the underground mine for the Hybrid option was developed. The main
infrastructure considered includes:
Main access tunnel
Main conveyor tunnel
Ventilation adits
Ventilation raises and shafts
Haulage levels
Production levels
Undercut levels
Access by levels
Figure 16.1 and Figure 16.2 illustrate the general layout of the underground mine design of
the Hybrid and Full Underground options, respectively.

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Figure 16.1: Hybrid option – Underground Mine Design
Figure 16.2: Full Underground Option – Mine Design
For the production level, a typical draw pattern was adopted. This has an area of 195 m2 per
draw-point, with 26 m between production drifts and 13 m between draw bell lines, as shown
in Figure 16.3:

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Figure 16.3: Typical Layout of the Production Level
The adopted general concept for the mine considers the following issues:
Production level 20 m below the undercut level. At this level, LHD units would transport
the ore to ore passes located within the footprint.
Secondary haulage level located 60 m below the production level. At this level trucks
would transport the ore to the primary gyratory crusher.
Main haulage level located at the elevation of the discharge of the crusher, 60 m below
the secondary haulage (start of main conveyor belt to the plant)

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Figure 16.4 to Figure 16.7 illustrate the arrangement of the different levels that constitute the
underground mine: Undercut, ventilation, haulage and conveyor levels.
Figure 16.4: Typical Layout of the Undercut Level

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Figure 16.5: Typical Layout of the Ventilation Level

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Figure 16.6: Typical Layout of the Haulage Level

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Figure 16.7: Typical Layout of the Conveyor Level
A second mining concept considers the following issues:

Production level 20 m below the undercut level. At this level, LHD units will transport the
ore to the primary crushers located within the footprint. A jaw crusher is considered for
this concept.
Main haulage level located at the elevation of the discharge of the crusher, to connect by
intermediate conveyor to the main conveyor belt to the plant.
This concept has been applied in UCL 3190 of the Hybrid option and UCL 3655 and UCL
3190 of the Full Underground option.

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16.4 Mine Production Schedules

16.4.1 Total Mineral Reserves
Mine schedules for each of the mining options were produced based on the pit and
underground mine designs and the contained reserves. Sulphide ore will be treated by
flotation and oxide and MacNeill ore by heap leaching.
In general, the highest reserve and metal content are contained in the Super Pit. In the
Hybrid option, the higher metal grades in the underground portion are insufficient to
compensate for the loss of contained reserve tonnage. The Hybrid and Full Underground
options have 18 % and 41 % less gold equivalent respectively.
16.4.2 Mine Production Schedules
Table 16.1 summarizes the life of mine, ore feed rate and mine movement rate associated
for each of the developed options.
Table 16.1: Mine Schedule Summary

Mine Schedule
Oxide MacNeill Open Pit Stockpile Max. Open Avg. Open
Option LOM UG Feed
Process Process Feed Feed Pit Mvment Pit Mvment
kt/d kt/d
years kt/d kt/d kt/d kt/d kt/d
Super Pit 19 72 33 150 909 655
Hybrid 23 72 33 95 80 15 500 380
Full UG 35 72 33 90 99 79
For the Super Pit and Hybrid options, the oxide ore is mined as a result of sulphide ore
requirement during the initial five years of mine life. An oxide feed rate of 26 Mt per year has
been calculated as the optimum based on the oxide crushing plant capacity for the crush
size required, the leach pad area, and the need to achieve satisfactory leaching
characteristics; balanced against minimizing stockpiling and re-handle during development
of the underlying sulphide reserves. Once oxide reserves are exhausted, leachable MacNeill
ore, produced as part of the overall mining operation, is crushed and leached at a rate of
12 Mt per year. The throughput for MacNeill material is less than that for oxide as the rock is
considered as being more competent than the oxide.
The total rock movement (ore and waste) for the open pit options is as follows
Super Pit option : Average 655,000 t/d (max 909,000 t/d) with 19 years Life of
Mine (LoM)
Hybrid option : Average 380,000 t/d (max 550,000 t/d) with 11 years LoM.
The pre-stripping schedule for the open pit considers fill material requirements for
construction of the main installations, corresponding to crusher platforms, starter platform for
the heap leach pad, as well as ore and waste conveyor corridors amongst others.

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The Super Pit option is the preferred option to be developed to Feasibility level, as such
particular attention should be made to the Super Pit values and parameters used throughout
this section.
Table 16.2 and Table 16.3 summarize the total construction tonnage required for the Super
Pit and Hybrid options.
Table 16.2: Waste Material Requirements for Construction – Super Pit Option
3 Tonnage (t @
Requirement for construction Volume (m )
2.0 t/m3)
Truck Dump Pocket / Primary Crushing (Oxide) 14,300 28,600
Primary Crushing (Sulphide Ore) 17,990 35,980
Main Conveyor Corridor (Ore) 2,597,100 5,194,200
Main Conveyor Corridor (Waste) 24,260,402 48,520,804
Heap Leach First platform 8,465,810 16,931,620
Heap Leach basal improvement 634,310 1,268,620
Total 35,989,912 71,979,824
Table 16.3: Waste Material Requirements for Construction – Hybrid Option

3 Tonnage (t @
Requirement for construction Volume (m )
2.0 t/m3)
Truck Dump Pocket / Primary Crushing (Oxide) 14,300 28,600
Primary Crushing (Sulphide Ore) 358,970 717,940
Crushing (Waste) 0 0
Main Conveyor Corridor (Ore) 15,202,710 30,405,420
Main Conveyor Corridor (Waste) 11,731,050 23,462,100
Heap Leach First platform 8,465,810 16,931,620
Heap Leach basal improvement 634,310 1,268,620
Total 36,407,150 72,814,300
The underground mine schedules were estimated by NCL using a scheduling tool (Block
Cave) without detailed engineering analysis of the mining sequence and geotechnical
restrictions. The schedules take into account the extraction rates and ensure that the new
area incorporated each year is, in general, within the range of 40,000 m2 per annum per
face.
The underground mining rate has been defined by reference to existing operations of a
similar size in terms of footprint and ore column heights. The production rate is 80 ktpd of
ore per day based on having two production faces in parallel at 40 ktpd each. This is similar
to the size of faces at Andina III Panel, Teniente Esmeralda, Teniente 4 and others.

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The Hybrid mine schedule indicates a gap in production in the years between completion of
the open pit and start of the underground mine. This is due to the limitations of the overlap
between both operations and the ramp up period of the underground mine. This gap will be
filled by reclaiming low grade ore from the stockpile produced during open pit operation.
Figure 16.8 and Figure 16.9 show the open pit mining schedule for the Super Pit and the
Hybrid options respectively.
Figure 16.8: Super Pit Option – Mine Schedule
Figure 16.9: Hybrid Option – Open Pit Mine Schedule
The underground contribution and the total mining schedule for the Hybrid and Full
Underground options are shown in Figure 16.10 and Figure 16.11 respectively:

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Figure 16.10: Hybrid Option – Open Pit and Underground Mine Contribution
Figure 16.11: Full Underground Option – Mine Schedule
Annual push back, or phase, development for the Full Open Pit and the Hybrid options are
presented in Figure 16.12 and Figure 16.13.

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Figure 16.12: Super Pit Option – Total Material by Mining Phase

350,000
300,000
F15
F14
250,000
F13
F11
Tonnage (kt / yr)
200,000
F09
F07
150,000 F06
F05
F03
100,000
F02
F01
50,000
F00
0
Y-2 Y-1 Y01 Y02 Y03 Y04 Y05 Y06 Y07 Y08 Y09 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18
Figure 16.13: Hybrid Option – Total Material by Mining Phase – Open Pit
200,000
180,000
160,000
F07
140,000
F06
Tonnage (kt / yr)
120,000 F05
100,000 F04
F03
80,000
F02
60,000
F01
40,000 F00
20,000
0
Y-1 Y01 Y02 Y03 Y04 Y05 Y06 Y07 Y08 Y09 Y10
The Super Pit development requires 6 to 7 phases working simultaneously. The open pit in
the Hybrid case has a maximum of 5 phases working per year.
Figure 16.14 and Figure 16.15 illustrate the required vertical development for each plan.

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Figure 16.14: Super Pit Option – Benches per Year

90.0
80.0
70.0 F15
F14
60.0 F13
F11
N° Benches / yr
50.0 F09
F07
40.0
F06
F05
30.0
F03
F02
20.0
F01
10.0 F00
0.0
Y-2 Y-1 Y01 Y02 Y03 Y04 Y05 Y06 Y07 Y08 Y09 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18
Figure 16.15: Hybrid Option – Benches per Year – Open Pit

60.0
50.0
F07
40.0 F06
N° Benches / yr
F05
30.0 F04
F03
20.0 F02
F01
10.0 F00
0.0
Y-2 Y-1 Y01 Y02 Y03 Y04 Y05 Y06 Y07 Y08 Y09
The maximum vertical development is achieved in the preproduction period. However, the
tonnage contribution from the initial benches is minimal, and the numbers of benches mined
per year is regarded as practically achievable.

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The heap leach stand-alone open pit development requires 2 to 3 phases working
simultaneously. Annual phase development is presented in Figure 16.16. The required
vertical development for that plan is presented in Figure 16.17.
Figure 16.16: Full Underground Option – Total Material by Mining Phase – Heap Leach
Open Pit
Figure 16.17: Full Underground Option – Benches per Year – Heap Leach Open Pit
16.5 Waste Mining Strategy – Open Pits

Due to the high waste material movement requirements for the project, the potential of using
in-pit crushing and conveying (IPCC) to remove as much of the waste as possible was
analysed. In addition to reducing the waste mining costs, it was clear that an opportunity
existed to create a waste stockpile to the north of the pit which would allow the tailing
storage facility (TSF) dam wall to be constructed with the IPCC system instead of

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conventional truck dump construction. A compacted dam wall face was designed to
generate the required retaining wall stability and level of impermeability, but the use of bulk
fill using the IPCC system removed the requirement for an engineered self-supporting
tailings retaining wall structure.
16.5.1 Equipment Selection Criteria – IPCC
The equipment selected for waste crushing, conveying and spreading was supplied by
Sandvik Mining and Construction (SMC), who were contracted to develop the IPCC systems
and procedures to ensure that a practical result was obtained.
The IPCC equipment selected is summarized in Table 16.4.
Table 16.4: IPCC Equipment for Super Pit and Hybrid Pit
Equipment Characteristics Machine Type
Gyratory Crushers 10,500 tph @100MPa Sandvik CG880 65x119in
Overland Pit Conveyor 21,000 tph; 2400 mm wide Sandvik ST 4500
Track Shiftable Conveyor 21,000 tph; 2400 mm wide Sandvik ST 2500
Spreaders 21,000 tph Sandvik SP2000 50/50
The crusher throughput is a critical aspect of the IPCC system performance. Sandvik
provided the following specifications for the system to ensure the requisite long term
average throughput of 10,500 tph was achievable.
No more than 2 % of material over 150 Mpa rock strength
Rock fragmentation typical for copper mine waste blasting; max. fragment feed size
1200 mm.
Open Side Setting (OSS) at 280 mm to produce maximum fragment sizing +/- 500 mm
Conveyor widths of 2,400 mm to handle the maximum fragment size
The Super Pit and Hybrid open pit options were those evaluated for the IPCC solution and
the main characteristics of each option are as follows:
16.5.1.1 Super Pit Option

The Super Pit option considers the use of two systems as described below. Each system
comprises of two gyratory crushers feeding a single conveyor and spreader.
Semi-fixed ex-pit crushing and conveying (EPCC) with two crushing stations, each
containing two gyratory crushers installed as fixed units, delivering product to two waste
stockpile locations (the North and West Stockpiles). Progressive relocation of the
crushing stations into the pit to a fixed crushing platform (IPCC) as optimization of the
mining schedule dictated.

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Development of the Tailing Storage Facility (TSF) dam using the North Stockpile
crushing and conveying system and with an engineered dam face design developed by
Knight Pièsold.
Throughput capacities of 10,500 tph for each gyratory crusher and 21,000 tph for each
main conveyors and spreader system for a total operational capacity of 42,000 tph or +/-
260 Mtpa for two systems with 4 crushers.
Figure 16.18 and Figure 16.19 show the layout of the resulting waste stockpiles and IPCC
infrastructure at the end of construction (end of Year -1) and the end of the mine life
respectively for the Super Pit.
Figure 16.18: Super Pit Option – General Layout – end of Year -1
North
Waste N
Stockpile
Conveyor
Corridor
Process Plant Waste EPCC
Primary Crusher
LeachPad
Stock
Leach Pad
1000 m
Leach Pad
Crusher Waste EPCC

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Figure 16.19: Super Pit Option – General Layout – end of Year 17
North
N
Waste
Stockpile
Tailings
Tailings Dam
Conveyor
Corridor

West
Waste Primary Crusher
Pyrite Tailings
Stockpile
Waste IPCC
Leach Pad
1000 m
Leach Pad Final Pit

Waste EPCC
Crusher
16.5.1.2 Hybrid Pit Option

The Hybrid option considers a single system consisting of two crushers, a single conveyor
and a single spreader.
Ex-pit crushing station (with two gyratory crushers) and conveying to one waste stockpile
(the West Waste Stockpile) with no relocation.
System capacity of 10,500 tph (gyratory crushers) and 21,000 tph (conveyors and
spreaders) for a total operational capacity of 21,000 tph or +/-130 Mtpa.
For the Hybrid Pit, Figure 16.20 and Figure 16.21 show the comparative dump and EPCC
infrastructure at the end of construction (Year -1) and the end of the open pit mining phase
respectively.

January, 2012
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Figure 16.20: Hybrid Option – General Layout – end of Year -1
Waste
Waste Conveyor
Stockpile Corridor N
Leach Pad
Stockpile
Waste
Ore Conveyor Crusher
Corridor
Primary
Sulphide
Crusher
Stockpile
Leach Pad
Pit
1000 m
Leach Pad
Crusher
Figure 16.21: Hybrid Option – General Layout – end of Year 9
Waste
Conveyor
Waste Corridor N
Stockpile
Waste
Crusher
Ore Conveyor
Corridor
Primary
Crusher Sulphide
Stockpile
Leach Pad
1000 m
Final
Leach Pad Pit
Crusher

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16.6 Operating Time Definition

The work schedule, typical for high altitude operations in Chile, assumes production will
operate 24 hours per day, 7 days per week, 365 days per year, and a total of 120 hours (5
days) each year will be lost due to adverse weather conditions. All continuous operations
personnel will work a 1-week-in / 1-week-out rotation. Operations and mining personnel will
work two 12 hour shifts.
Figure 16.22 summarizes the definitions used for equipment time allocation and calculation
of the main operational indices.
Figure 16.22: Operating time Definition

Calendar Time
Available Hours Downtime
Gross Operating Hours Standby
Net Operating Hours Delays
The categories used in the time model are defined as follows
Calendar Time: The amount of hours in a calendar year. At 24 hours per day
and 365 operating days per year, the total calendar hours per
year are 8,760 hours.
Schedule Hours: Calendar hours less annual non-scheduled work hours.
Available Hours: Schedule Hours less the amount of downtime for the piece of
equipment.
Downtime: When the unit is not mechanically operable. This includes all
planned and unplanned maintenance.
Availability: The measure of downtime; it is expressed as Available Hours

divided by Calendar Time.
Gross Operating Available Hours less Standby. The effective operating

hours (engine hours), which are used for costing purposes.
Standby: When the unit is mechanically operable but is not manned or

used (e.g., schedule loss, safety meetings, meals, breaks,
blasting, shift change, weather outages, power outages,
etc.).

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Net Operating Gross Operating Hours less Delays. The net Operating
Hours: These hours are used for determining fleet size
requirements.
Delays: When the unit is operable and manned, but is not involved in
production (i.e., fuelling, positioning, daily service, crusher
down, drill and loader moves, shovel, walking, face
preparation, highwall scaling, personal breaks, delays for
blasts, operator changes and waiting on shovel).
Table 16.5 provides an example of the time calculation for the major units of equipment
based on the experience of NCL and that of similar operations to Caspiche.

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Table 16.5: Time Usage Model Example – Mobile Equipment

Rope Electric
CASPICHE OPERATING HOURS FEL Truck
Shovel Drill
Availability
Calendar Hours hours 8,760 8,760 8,760 8,760
Mtce Scheduled non-work time hours 0 0 0 0
Snow Losses hours 120 120 120 120
Other losses hours 0 0 0 0
Industrial losses hours 0 0 0 0
Scheduled Hours hours 8,640 8,640 8,640 8,640
Daily Service hours 183 183 183 183
Weekly Maintenance hours 312 312 312 312
Other Maintenance Shutdown hours 212 212 148 198
Scheduled Maintenance hours 707 707 643 693
Scheduled Availability % 91.8 91.8 92.6 92.0
Breakdowns as % of Scheduled % 3.7 6.6 6.8 6.0
Breakdowns hours 321 572 590 518
BUDGET Overall Availability % 88.10 85.20 85.73 85.98
Available Hours hours 7,612 7,361 7,407 7,429
Utilization
Shift duration hours 12 12 12 12
Shift duration mins 720 720 720 720
No of shifts/day 2 2 2 2
Shift startup + meeting mins/shift 15 15 15 15
Travel to /from pit mins/shift 5 5 5 5
Travel from pit mins/shift 5 5 0 0
Truck operator changeout mins/shift 1 1 1 1
Equipment Inspection minutes 5 5 5 5
Meal break minutes 60 60 60 60
Blasting delays minutes 10 15 10 10
Fuel/Lubrication minutes 5 20 25 5
Manoeuvre % of shift 4.20 0.00 0.00 8.30
Manoeuvre minutes 30 0 0 60
Fatigue + Safety Meeting Delays minutes 5 5 5 5
Not required minutes 0 25 0 16
Effective Operation/Shift minutes 579 564 599 518
Equipment Utilization (%) 80.4 78.3 83.2 72.0
Effective Operating Hours Rope FEL Truck Electric
Annual Hours hours 8,640 8,640 8,640 8,640
Equipment Availability (%) 88.1 85.2 85.7 86.0
Possible Mine Operating Hours (%) 100,0 100,0 100,0 100,0
Equipment Utilization (%) 80.4 78.3 83.2 72.0
Effective Operating Hours hours 6,120 5,764 6,163 5,349
SMU (Engine) Hrs / year 6,502 6,288 6,481 6,500

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Table 16.6 shows an equivalent Time Usage Model (TUM) developed for the North Dump
IPCC System. In particular, the anticipated relocation losses for the IPCC system during
Year 2 are included, and this was then taken into account when the overall availability was
calculated (refer to the rows under CALENDAR HOURS).
Table 16.6: Time Usage Model Example – IPCC System Equipment

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In addition, where there were multiple components (crusher, multiple conveyors and
spreader), then the total downtime was adjusted to allow for the interrelationship between
the components. For example, it was not always possible to carry out opportunity
maintenance on conveyors or a spreader when unscheduled downtime occurred on a
crusher. So, whilst the downtimes are not cumulative, there is some increase in downtime
over the individual component downtimes. This is basic binomial probability theory, but in
order to project accurately it would be necessary to know the Mean Time Between Failures
(MTBF) and Mean Time To Repair (MTTR) for each component so that a mathematical
simulation could be made. However, for this level of study, existing mine operating
availability data was used and a normal maintenance strategy incorporated so as to
determine an acceptable factor.
For a simple system with two crushers (with separate sacrificial belts), one overland
conveyor, two Track Shiftable Conveyors (TSC’s) and one spreader, a 1.25 multiplier on
downtime over the highest component downtime (hours) was deemed acceptable, and this
is shown on the “Breakdowns” line for the System availability below. For this particular
system and year, it can be seen that the losses due to relocations were significant.
Conservative estimates of the relocation downtimes were used as recommended by SMC,
and these could be improved with operating experience.
Table 16.7 shows the relocation losses used in the study for the conveyor systems to the
waste dumps.
Table 16.7: Relocation Losses for the IPCC systems

Basis of System Relocation Downtimes
ITEM Type Hours Description
Track Shiftable Conveyors
4” Deg Radial Shift of a Calculation based on current best practice,

72
Track Shiftable Conveyor D11 operating speed and Conveyor length.
1 st 100 m Extension using
72
Casette
nd
For every 200 m extension an allowance of
2 100 m Extension 1 week (168 hours) is allowed for.
Splicing and re-using 96
Casette
Spreader and Track 100 m Conveyor and Spreader relocated
1,176
Shiftable System Reloction to new starting position.
Gyratory Crusher 7 weeks Allowance using 660 t crane and
1,176
Crushers
Relocation trailer
4 Weeks Allowance made for Crusher
Hybrid Crusher Relocation 672
Relocation using 660 t Crane and trailer
Note that relocation of the entire spreading system (from one level of a stockpile to another)
is required from time to time. These longer downtimes were scheduled into the production
plan. The crushers were also relocated during the life of the project, and some 7 weeks was
allowed for these relocations, assuming that all civil works for the new installations were
planned, scheduled and completed ahead of the relocation. Accordingly, downtime was
estimated as the time to dismantle and relocate the major equipment from the crusher
station(s). Only one crusher was relocated in any calendar year.

January, 2012
Caspiche Project
Copiapó, Chile
16.7 Mine Equipment

Table 16.8 to Table 16.12 illustrate the open pit and underground mobile equipment fleet
requirements by year through the mine life. These tables represent the equipment
necessary to perform the following duties:
Mine and transport oxide, MacNeill and sulphide ore to the appropriate primary crushers
or stockpiles.
Mine and transport waste material from the pit to the appropriate waste crusher(s) and
subsequent conveying to the appropriate waste stockpile using conveyors and
spreaders.
Maintain all the mine work areas, in-pit haul roads, and external haul roads; also
maintain the waste stockpiles.
Ventilate and maintain the underground areas.
Re-handle the oxide and MacNeill ores (load, transport and auxiliary equipment) from
the stockpile to the primary crusher.

January, 2012
Caspiche Project
Copiapó, Chile
Table 16.8: Super Pit Option – Main Mobile Equipment Requirements

Main Equipment Y-03 Y-02 Y-01 Y01 Y02 Y03 Y04 Y05 Y06 Y07 Y08 Y09 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17
Open Pit
FEL L-2350 1 1 2 3 4 4 3 3 4 4 3 4 3 4 3 2 1 1 1 1
Electric Rope Shovel 495HR 2 4 5 8 9 9 9 9 9 9 9 9 9 9 8 5 3 2 2 2
Haul Truck – Liebherr T282 18 25 30 52 64 60 63 64 61 64 61 57 64 60 62 48 36 32 33 35
Electric Drill – 310 mm 3 4 5 10 14 13 13 13 14 14 15 15 15 15 12 8 6 5 4 3
Diesel Drill – 250 mm 1 2 2 3 3 4 4 4 4 4 4 4 4 4 4 3 2 2 2 1
Support Drill 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 1 2 1 1 2
Bulldozer 1 Cat D10 3 4 5 6 7 7 6 6 7 7 6 7 7 6 5 3 2 2 2 2
Bulldozer 2 Cat D11 3 3 4 4 5 5 4 4 5 5 4 5 4 5 4 4 3 3 3 3
Wheeldozer 1Cat 834H 2 3 4 6 7 7 6 6 7 7 6 7 6 7 6 4 2 2 2 2
Wheeldozer 2 Cat 854H 1 1 2 2 3 3 2 2 3 3 2 3 2 3 2 2 1 1 1 1
Motorgrader 1 Cat 16M 4 4 4 4 4 4 5 5 4 4 4 4 4 4 5 6 6 6 6 5
Motorgrader 2 Cat 24M 2 2 1 1 1 1 2 2 2 2 2 1 2 1 2 2 2 2 2 2
Water Truck Cat 777F 1 1 1 2 2 2 3 3 3 3 3 2 3 2 3 3 2 3 3 3
Backhoe 5-8 yd3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Fuel Truck 85 m3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Lube Truck 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Support Truck 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Mobile Crane 200 t 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Lowboy Truck 110 t 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Tire Handler Cat 988H 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Lighting Plant 4x1000 W 8 12 16 26 32 32 31 31 33 33 33 34 33 34 29 19 14 11 10 9

January, 2012
Caspiche Project
Copiapó, Chile
Table 16.9: Hybrid Option – Main Mobile Equipment Requirements – Open Pit
Main Equipment Y-03 Y-02 Y-01 Y01 Y02 Y03 Y04 Y05 Y06 Y07 Y08 Y09 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18
Open Pit
FEL 38 m3 1 1 2 2 2 2 2 2 2 2 2 1 2 2 2 1 1 1 1 1 1
Electric Rope Shovel 56 m3 2 3 4 5 5 5 5 5 5 3 2 2 0 0 0 0 0 0 0 0 0
Haul Truck 360 t 17 19 28 30 34 35 27 35 37 37 26 21 9 7 6 4 3 2 2 2 1
Electric Drill 250-311 mm 3 3 4 6 6 7 7 7 7 5 3 3 0 0 0 0 0 0 0 0 0
Diesel Drill 250-311 mm 1 1 2 2 2 2 2 2 2 2 1 1 0 0 0 0 0 0 0 0 0
Support Drill 1 1 1 2 2 2 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0
Bulldozer 650 HP 3 3 4 4 5 4 4 3 3 2 2 2 0 0 0 0 0 0 0 0 0
Bulldozer 850 HP 3 3 3 4 4 4 4 4 4 3 3 3 1 1 1 1 1 1 1 1 1
Wheeldozer 550 HP 2 2 3 4 4 4 3 4 4 3 2 2 0 0 0 0 0 0 0 0 0
Wheeldozer 900 HP 1 1 1 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1
Motorgrader 300 HP 4 3 4 4 4 4 3 4 4 4 4 2 2 1 1 1 1 1 1 1 1
Motorgrader 530 HP 2 2 2 2 2 2 2 2 2 2 2 2 0 0 0 0 0 0 0 0 0
Water Truck 85 m3 2 1 2 1 1 1 1 1 2 2 2 1 1 1 1 1 1 1 1 1 1
Backhoe 5-8 yd3 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0
Fuel Truck 85 m3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Lube Truck 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Support Truck 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Mobile Crane 200 t 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0
Lowboy Truck 110 t 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0
Tire Handler 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Lighting Plant 4x1000 W 8 9 13 17 17 18 17 17 17 13 9 8 2 2 2 2 2 2 2 2 1

January, 2012
Caspiche Project
Copiapó, Chile
Table 16.10: Hybrid Option – Main Equipment Requirements – Underground Mine

Main Equipment Y09 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 Y21
Underground Mine
LHD 10 yd3 1 4 7 10 14 18 21 21 21 21 18 13 8
Haul Truck 80 t 1 3 5 8 11 14 16 16 16 16 13 10 6
Secondary Reduction 1 1 2 2 3 4 5 5 5 5 4 3 2
Pick hammer 9 20 30 42 52 57 57 56 53 46 33 25 15
Explosives Loader 2 2 2 2 2 2 2 2 2 2 2 2 2
Services truck 2 3 4 5 6 7 7 7 7 7 6 5 4
Lifting Platform 3 3 3 3 3 3 3 3 3 3 3 3 3
Grader 3 3 3 3 3 3 3 3 3 3 3 3 3
Ambulance 2 2 2 2 2 2 2 2 2 2 2 2 2
Main Fans 2 2 2 4 6 6 6 6 6 6 6 4 2
Secondary Fans 13 31 48 65 82 89 89 89 83 72 50 37 22
In this study, the underground mine development is considered as being executed under contract, thus company
owned equipment is required only from the start of underground production in year nine of the operation.

January, 2012
Caspiche Project
Copiapó, Chile
Table 16.11: Full Underground Option – Main Equipment Requirements for the Open Pit
Main Equipment Y-01 Y01 Y02 Y03 Y04 Y05 Y06 Y07 Y08 Y09 Y10 Y11 Y12
Open Pit
FEL 19m3 1 1 1 1 1 1 1 1 1 1 1 1 1
Hydraulic Shovel 29 m3 2 2 2 2 2 2 2 2 2 2 1 1 1
Haul Truck 185 t 14 13 12 13 16 12 15 16 15 12 9 10 9
Diesel Drill 250-311 mm 2 1 1 2 2 2 2 2 2 2 1 1 1
Support Drill 1 1 1 1 1 1 1 1 1 1 1 1 1
Bulldozer 650 HP 2 2 2 2 2 2 2 2 2 2 1 1 1
Wheeldozer 550 HP 2 2 2 2 2 2 2 2 2 2 1 1 1
Motorgrader 300 HP 2 2 2 2 2 2 2 2 2 2 2 2 2
Water Truck 85 m3 1 1 1 1 1 1 1 1 1 1 1 1 1
Backhoe 5-8 yd3 1 1 1 1 1 1 1 1 1 1 1 1 1
Fuel Truck 85 m3 1 1 1 1 1 1 1 1 1 1 1 1 1
Lube Truck 1 1 1 1 1 1 1 1 1 1 1 1 1
Support Truck 1 1 1 1 1 1 1 1 1 1 1 1 1
Mobile Crane 200 t 1 1 1 1 1 1 1 1 1 1 1 1 1
Lowboy Truck 110 t 1 1 1 1 1 1 1 1 1 1 1 1 1
Tire Handler 1 1 1 1 1 1 1 1 1 1 1 1 1
Lighting Plant 4x1000 W 6 5 5 6 6 6 6 6 6 6 4 4 4

January, 2012
Caspiche Project
Copiapó, Chile
Table 16.12: Full Underground Option – Main Equipment Requirements for the Underground Mine
Main Equipment Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 Y21 Y22 Y23 Y24 Y25 Y26 Y27 Y28 Y29 Y30 Y31 Y32 Y33
Underground Mine
LHD 10 yd3 2 7 11 16 23 26 28 30 34 30 24 24 24 25 24 18 16 16 15 15 15 6
Haul Truck 80 t 0 0 1 2 3 5 6 8 10 14 17 17 17 17 13 8 4 4 0 0 0 0
Secondary Reduction 1 2 3 4 5 6 6 6 7 7 5 5 5 6 6 5 4 4 3 3 3 2
Pick hammer 2 3 12 18 22 30 39 47 53 60 60 60 49 51 36 29 19 13 5 5 5 3
Explosives Loader 2 2 4 4 4 4 4 4 4 4 2 2 2 4 4 4 4 4 2 2 2 2
Services truck 2 3 5 6 8 9 9 10 11 11 8 8 8 10 9 7 7 7 4 4 4 3
Lifting Platform 3 3 6 6 6 6 6 6 6 6 3 3 3 6 6 6 6 6 3 3 3 3
Grader 2 2 5 5 5 5 5 5 5 5 3 3 3 6 6 6 6 6 3 3 3 3
Ambulance 2 2 4 4 4 4 4 4 4 4 2 2 2 4 4 4 4 4 2 2 2 2
Main Fans 2 2 2 4 4 4 4 6 6 6 6 6 6 6 6 4 4 4 2 2 2 2
Secondary Fans 17 33 57 73 78 86 96 104 110 89 63 63 51 61 54 48 42 37 29 29 24 10

January, 2012
Caspiche Project
Copiapó, Chile
16.7.1 Open Pit Mobile Equipment

The type and quantity of mining equipment to satisfy the mine production schedule
requirements are presented in this section.
16.7.1.1 Equipment Selection Criteria
The equipment selected for the project was for a standard truck and shovel mining
operation, using conventional drilling patterns and contractor, as well as regular equipment
maintenance requirements.
Equipment selected for the mining operation is shown in Table 16.13.
Table 16.13: Mining Equipment for the Super Pit and Hybrid Cases

PV 351 Atlas Copco,
Drill 250-311 mm
Diesel and Electric
FEL 38 m 3 LT2350 - LeTourneau
3
Rope Shovel 56 m 495 HR – Bucyrus
Haul Truck 360 t T282C – Liebherr

650 HP D10T – Caterpillar
Bulldozer
850 HP D11T - Caterpillar
550 HP 834H – Caterpillar
Wheeldozer
900 HP 854H - Caterpillar
300 HP 16M – Caterpillar
Motorgrader
530 HP 24 M - Caterpillar
Water Truck 85 m 3 777 F – Caterpillar
The stand-alone heap leach pit equipment selection considered that the entire mine will be
diesel operated. The equipment selected is summarized in Table 16.14.
Table 16.14: Equipment Selection for the Stand Alone Heap Leach
Drill 10 5/8” to 12 ¼” DMM-3 Atlas Copco
FEL 19 m 3 WA 1200-Komatsu
3
Hydraulic Shovel 29 m PC 5500-Komatsu
Haul Truck 185 t 730 E-Komatsu
Bulldozer 650 HP D10T-Caterpillar
Wheeldozer 550 HP 834H-Caterpillar
Motorgrader 300 HP 16M-Caterpillar
3
Water Truck 85 m 777 F-Caterpillar

January, 2012
Caspiche Project
Copiapó, Chile
Supplier names and equipment types are provided for orientation purposes only.
16.7.1.2 Production Requirements
The major mine equipment was selected based on the production schedules described
previously. Based on these schedules, 25 months of pre-stripping are required for the Super
Pit and the Hybrid options; 17 years of production to extract the ore of the Super Pit, and 9
years of open pit operation, followed by rehandling operations from year 9 to year 18, for the
Hybrid are required.
Work during the preproduction period will include preparing roads, bench openings and
preproduction stripping. Total material mined during preproduction is 392 Mt and 375 Mt for
the Super Pit and the Hybrid option respectively.
The heap leach open pit will operate for 12 years; with 8 months of pre-stripping required,
mainly to fulfil construction requirements and avoid higher material movement for MacNeill
extraction. Table 16.15 shows the amount of ore and waste that will be handled by the open
pit mining equipment.
Table 16.15: Open Pit Mine Production Summaries

Mine Production Plant
Total Oxide MacNeill Sulphide

Oxide MacNeill MacNeill Sulphide Sulphide Waste to
Option Oxide to Waste for Rock Ore Ore Ore
Ore To Ore To Ore to Ore to Ore to Waste
Stockpile Construction From Re- Re- Re-
Crusher Crusher Stockpile Crusher Stockpile Stockpile
Mine handle handle handle
(‘000 t) (‘000 t) (‘000 t) (‘000 t) (‘000 t) (‘000 t) (‘000 t) (‘000 t) (‘000 t) (‘000 t) (‘000 t) (‘000 t)
Super
90,178 33,732 54,287 23,976 885,164 4,000 71,980 3,322,942 4,486,259 33,732 23,976 4,000
Pit
Hybrid 99,684 24,226 39,953 29,598 296,700 120,533 72,814 822,705 1,506,214 24,226 29,598 120,533
Heap
101,817 9,834 69,333 4,357 242,439 18,229 132,562 427,780 9,834 4,357
leach
16.7.1.3 Main Rock Characteristics

Table 16.16 illustrates the material characteristics used for equipment productivity
calculations. The density values are based on the resource block model values for the
various materials as tabulated from the mine production schedule.
Since high compaction is needed in the construction of the platform for the plant, a higher
loose density has been considered. After considering swell factors, 2.0 t/m 3 has been used
to convert the required volume of waste material to tonnage.
Table 16.16: Material Characteristics

Oxide MacNeill Sulphide Waste
3
Bulk Density (t/m ) 2.35 2.43 2.44 2.40
Material Handling Swell factor (%) 30 30 30 30
Moisture Content (%) 2 2 2 2

January, 2012
Caspiche Project
Copiapó, Chile
The material handling swell factor (in situ to loose tonnage) was estimated at 30 %.
NCL assumed a moisture content of 2 %. The density of wet loose material was used to
calculate truck allowable payload limits.
All equipment production is reported in dry metric tonnes. This corresponds to the units of
dry measurement contained in the computer model, the stated reserves and the mine
material movements as summarized in Table 16.15.
16.7.1.4 Mobile Equipment Performance and Fleet Requirements
Data from vendors and other operating mines indicate that mechanical availability of the
equipment decreases with hours worked, as shown in Table 16.17. An average mechanical
availability based on the life of the fleet was assigned to replicate the availability for a fleet
containing units of mixed ages.
Table 16.17: Equipment Life and Mechanical Availability

Incremental Hours (000)
Equipment Life
0-5 5 - 10 10 - 15 15 - 20 20 - 25 25 - 30 30 - 35 35 - 40 40 - 45
Major Equipment Eq. Life (Hrs) Mechanical Availability (%)
Diesel Drill PV 351D 12-1/4" 75,000 87 85 83 81 81 81 81 81 81
Electric Drill PV 351E 12-1/4” 75,000 89 87 85 83 81 81 81 81 81

3
FEL 38 m 50,000 92 90 88 86 84 84 84 84 84
3
FEL 19 m 42,000 92 90 88 86 84 84 80 80 80
Hydraulic Shovel 22 m3 75,000 88 86 84 82 80 80 80 80 82

3
Rope Shovel 56 m 100,000 90 89 88 87 86 85 84 84 84
Haul Truck 360 t 70,000 89 88 87 86 85 85 85 85 85
Haul Truck 185 t 70,000 89 88 87 86 85 85 85 85 85
Bulldozer 60,000 88 87 86 85 84 84 84 84 84
Wheeldozer 50,000 88 87 86 85 84 86 86 86 86
Motorgrader 60,000 87 86 85 84 84 84 84 84 84
3
Water Truck 85 m 70,000 88 87 86 85 84 84 84 84 84
The performance of all drilling and loading units was calculated on the basis of operational
indices and detailed estimates of the times involved in each activity. Truck performance
estimates used variable distances per period and the type of material being hauled.
Equipment hours and number of units in the fleet were calculated using the estimated
performance and the materials movement requirement per period.
Equipment required to haul ore from crusher to the pads was also included in calculations
and then distributed to the process capital cost area.

January, 2012
Caspiche Project
Copiapó, Chile
Drilling
The drilling equipment for ore and waste will consist of diesel units capable of drilling 12-1/4
in diameter holes.
To date no specific drilling and blasting study has been conducted for the Caspiche project;
assumptions were made based on general characteristics of the rock at Caspiche and
experience at similar types of operations. Three different rock groups were defined using the
UCS characteristics as main parameter. Penetration rates were calculated using the
Workman Method, a recognized formula designed in 1996 to estimate the penetration rates
in a wide range of rock:
V RF 28 * log 0.145 * Sc * 5.70 * 10 5 * PD * RPM
Where:
V = Penetration rate
RF = Rock factor, depends on SC
SC = UCS = Uniaxial Compression Strength (MPa)
PD = Drilling equipment pulldown = 145.7 kg/mm
RPM = Drilling equipment revolutions per minute = 100
Table 16.18 presents the typical drilling parameters used for describing the drilling and
blasting operations.
Table 16.18: Drilling Parameters

UCS
Pattern code 30-55 55-90 90-120 >120
(MPa)
Material Ore Waste Ore Waste Ore Waste Ore Waste
Drill diameter mm 311.2 311.2 311.2 311.2 311.2 311.2 311.2 311.2
Bench height m 15 15 15 15 15 15 15 15
Subdrill m 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5
Stemming m 5.0 6.5 6.0 6.5 7.0 8.5 7.3 8.3
Burden m 8.8 9.0 8.5 8.7 8.2 8.5 7.8 8.0
Spacing m 10.5 11.0 9.5 10.7 9.4 9.5 9.0 9.5
3
Specific drilling m /m 84.0 90.0 73.4 84.6 70.1 73.4 63.8 69.1
Redrill 5 5 5 5 5 5 5 5
Penetration rate m/h 48 48 33 33 26 26 19 19
3
BCM per hole m /hole 1,386 1,485 1,211 1,396 1,156 1,211 1,053 1,140
ANFO
g/t 221.6 182.5 220.6 182.2 219.0 179.8 222.3 183.0
Consumption

January, 2012
Caspiche Project
Copiapó, Chile
Controlled drilling and blasting will be practiced along the final faces of the pits. An
adjustment factor of 5 % was applied to account for re-drilling in ore and waste.
Annual production capacity was estimated for each type of drill and per each period of the
mine plan. Typical estimated capacities per year for each one of the rock types are
presented in Table 16.19.
Table 16.19: Drilling Capacity per Year

UCS (MPa) Ore Waste
30-55 31,494 33,291
55-90 19,919 22,962
90-120 14,272 14,683
>120 9,601 10,394
The tonnage distribution for drilling according to the type of material was estimated for the
life of mine and then divided by the yearly capacity.
Loading
Primary loading in the bulk material will be performed by 495 HR Bucyrus rope shovels with
a 73 yd3 (56 m3) bucket, or similar unit. A LeTourneau frontend loader with a 50 yd 3 (38 m3)
bucket, or similar unit, will be used for secondary loading, rehandle and shovel support.
Loading for the heap leach stand-alone pit will be performed by Komatsu PC 5500 diesel-
hydraulic shovels with a 38 yd3 (29 m3) bucket. The Komatsu WA-1200 with a 26 yd3 (20 m3)
bucket will be used for secondary loading, rehandle and shovel support.
The productivities of the loading equipment were calculated with respect to the selected haul
trucks and are shown in Table 16.20.
The tonnage distribution for loading, according to the type of material, was then allocated for
the life of mine and divided by the yearly capacity for each period.

January, 2012
Caspiche Project
Copiapó, Chile
Table 16.20: Shovel and Loader Productivity Calculations
Item Unit Rope Shovel FEL

3
Bucket capacity m 56 38
3
Truck capacity m 268 268
Truck capacity t 360 360
3
In-situ bulk density t/ m 2.45 2.45
Bulk factor 40 40
3
Loose density t/ m 1.75 1.75
Moisture () 2 2
Fill factor 90.3 88.8
3
Effective bucket capacity m 50.6 33.7
Wet/loose density t/ m3 1.78 1.78
Tonnes/pass t 90.0 60.0
Theoretical passes (volume) - 5.3 8.0
Theoretical passes (weight) - 4.0 6.0
Actual passes - 4 6
3
Truck load m 202 202
Truck load t 360 360
Truck fill (volume) 75 75
Truck fill (weight) 100 100
Loader cycle time sec 33.6 45
Loader spot time sec 66 60
Load time per truck sec 200.4 330
Trucks / adj.
Maximum productivity 18.0 10,9
NOH
Maximum productivity wmt / adj. NOH 6,467 3,926
Maximum productivity wmt / GOH 5,387 3.271
Maximum productivity dmt / GOH 5,279 3,205
Maximum productivity wmt/a 32,464,856 19,148,939
Maximum productivity wmt/d 88,945 52,463
Maximum productivity dmt/a 31,815,559 18,765,960
Maximum productivity dmt/d 87,166 51,414
Hauling
Using this information, the mine production plan, and haulage distances for each type of
material were derived. Separate values were obtained for transport within and outside the pit
(between the pit exit and the destination: primary or heap leach crusher, waste dumps or
stockpile). The distances were split between ramp and horizontal transport. Average
distances per year are shown in Figure 16.23 and Figure 16.24.

January, 2012
Caspiche Project
Copiapó, Chile
Figure 16.23: Super Pit Option – Estimated Distances
Figure 16.24: Hybrid Option – Estimated Distances
Truck speeds were determined using information from suppliers, adjusted by correction
factors to allow for slower velocities on the benches and at the stockpiles. Speeds used for
calculations are shown in Table 16.21.
Table 16.21: Average Speeds (km/h) for Liebherr T282C and Komatsu 730 E
Tram Liebherr T 282C Komatsu 730E
Loaded Uphill 12.5 10
Loaded Flat 45 40
Loaded Downhill 27 20
Empty Uphill 27 15
Empty Flat 45 40
Empty Downhill 40 20

January, 2012
Caspiche Project
Copiapó, Chile
Truck performances are calculated for every loading unit and period of the production plan
depending on the travel time (see Figure 16.25 to 16.27) and other fixed times of the cycle,
including loading according to the equipment used, dumping and manoeuvring, amongst
others.
Figure 16.25: Super Pit Option – Travel Cycle Times for Each Origin-Destination
Cycle time
Weighted average Ox Ore to Crusher Sulp h Ore to Crusher Sulph Ore to Stockpile
Waste to Corridor Waste to WRF (Trucks) Waste to Chx-1 McNeill Ore Reclaim Chx-LchPad
Ox Ore to Sto ckpile Ox Ore Reclaiming Waste f or Co nstruction
70
60
50
Cycle time (min)
40
30
20
10
0
Y-03
Y-02
Y-01
Y01
Y02
Y03
Y04
Y05
Y06
Y07
Y08
Y09
Y10
Y11
Y12
Y13
Y14
Y15
Y16
Y17
Y18
Y87
Figure 16.26: Hybrid Option – Travel Cycle Times for Each Origin-Destination
Cycle time
Weighted averag e Ox Ore to Crusher Sulph Ore to Crusher Sulph Ore to Stockpile Waste to Corridor Waste to WRF (Trucks)
Waste to Chx-Gyr Ox Ore from Chx to LeachPad Ox Ore to Sto ckp ile Ox Ore Reclaiming Waste for Construction
60
50
40
Cycle time (min)
30
20
10
0
Y01
Y02
Y03
Y04
Y05
Y06
Y07
Y08
Y09
Y10
Y11
Y12
Y13
Y14
Y15
Y16
Y17
Y18
Y-03
Y-02
Y-01

January, 2012
Caspiche Project
Copiapó, Chile
Figure 16.27: Heap Leach Stand Alone – Travel Cycle Times
An example of a truck performance calculation is presented in Table 16.22:
Table 16.22: Haul Truck Loaded by Rope Shovel

Ore Waste
Truck Capacity (tonnes) 360 360
3
Bucket Capacity (m ) 56 56
Travel Time (min) 27 24.6
Loading time (min) 2.24 2.24
Dumping and spotting time (min) 2.5 2.0
Cycle Time (min) 32.4 28.9
Hourly instantaneous productivity (t/NOH) 667 749
Efficiency 85 85
Hourly productivity (t/op h) 567 636
Availability 85 85
Utilization 83.4 83.4
Hours/shift 12 12
Shifts/day 2 2
Yearly capacity (’000 t/yr) 3,522 3,952
The number of trucks required is obtained by dividing the annual hauled material by the
corresponding transport capacity of a truck, represented by the distribution of the hauled
material to the different loading units.
16.7.2 IPCC Open Pit Equipment
16.7.2.1 Equipment List –E & IPCC – Super Pit
Table 16.23 illustrates the E & IPCC equipment fleet for the Super Pit versus time.

January, 2012
Caspiche Project
Copiapó, Chile
Table 16.23: Super Pit Option – IPCC Equipment Requirements
Avg
Equipment Y- Y-
Description Capacity Y01 Y02 Y03 Y04 Y05 Y06 Y07 Y08 Y09 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18
ID 02 01
tph
CR03 Gyratory Crusher (CG880) 10.500 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

SCV-01C Sacrificial Conveyor - Crusher 3 10.500 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
SCV-01D Sacrificial Conveyor - Crusher 4 10.500 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
CV-02B In Pit Conveyor 2 - North Stockpile Feed 21.000 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1
CV-011B Transfer Conveyor 2 - North Stockpile Feed 21.000 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1
CV-03B External Pit Conveyor - North S’pile Feed 21.000 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0
CV-04 Overland Conveyor - North Stockpile Feed 21.000 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
CV-05 Overland Conveyor - North Stockpile Feed 21.000 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
CV-06 S’Pile Transfer Conveyor - North S’Pile Feed 21.000 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0
CV-07 Track Shiftable Conveyor - North S’Pile Feed 21.000 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
CV-010 Track Shiftable Conveyor - North S’Pile Feed 21.000 0 0 0 1 1 1 1 1 0 0 0 0 0 0 1 1 1 1 1 1
SP02 50/50 Spreader 21.000 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
SCV-01A Sacrificial Conveyor - Crusher 1 10.500 0 0 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0
SCV-01B Sacrificial Conveyor - Crusher 2 10.500 0 0 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0
CV-02A In Pit Conveyor 1 - West Stockpile Feed 21.000 0 0 0 0 0 0 0 0 0 1 1 1 1 1 0 0 0 0 0 0
CV-011A Transfer Conveyor 1 - West Stockpile 21.000 0 0 0 0 0 0 0 0 0 1 1 1 1 1 0 0 0 0 0 0
CV-03A External Pit Conveyor - West Stockpile Feed 21.000 0 0 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0
CV-08 Overland Conveyor - West Stockpile Feed 21.000 0 0 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0
CV-09 Track Shiftable Conveyor - West Dump 21.000 0 0 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0
SP01 50/50 Spreader 21.000 0 0 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0

January, 2012
Caspiche Project
Copiapó, Chile
16.7.2.2 Equipment List – EPCC – Hybrid Pit

Table 16.24 illustrates the EPCC equipment fleet for the Hybrid Pit against time.
Table 16.24: Hybrid Option – EPCC Equipment Requirements

Avg
Equipment Y- Y-
Description Capacity Y01 Y02 Y03 Y04 Y05 Y06 Y07 Y08 Y09
ID 02 01
tpoh
CR01 Gyratory Crusher (CG880) 10.500 1 1 1 1 1 1 1 1

CR02 Gyratory Crusher (CG880) 10.500 1 1 1 1 1 1 1 1 1
CV-03 External Pit Conveyor 21.000 1 1 1 1 1 1 1 1 1 1 1
CV-04 Overland Conveyor 21.000 1 1 1 1 1 1 1 1 1 1 1
Initial Track Shiftable Conveyor
CV-07 (fill Modules 1-2) 21.000 1 1 1 1 1 1 1 1 1 1 1
Track Shiftable Conveyor – (fill
CV-08 Module 3) 21.000 1 1 1 1 1
SP-01 50/50 Spreader 21.000 1 1 1 1 1 1 1 1 1 1 1
SCV-01 Sacrificial Conveyor - Crusher 1 10.500 1 1 1 1 1 1 1 1
SCV-02 Sacrificial Conveyor - Crusher 2 10.500 1 1 1 1 1 1 1 1 1
16.7.3 Support and Auxiliary Equipment Requirements

The support and ancillary equipment can be grouped broadly into two categories; the first is
equipment used to support mining operations and the second to service and maintain the
mining equipment fleet.
The major tasks to be completed by the equipment required to support the mining operation
include the following:
Waste rock storage facility maintenance
Bench and road maintenance
Ditch preparation and maintenance
Drill pattern preparation / hole stemming
Stockpile loading and rehandling
General maintenance
Waste stripping and reclamation.
The number of auxiliary equipment units is determined as a function of the number of units
in the main loading and hauling fleet, and the total rock movement in the pit. The relations
that will be applied are:
One track dozer for each 2.5 loading equipment and waste stockpile operation
One wheel dozer for roads and cleaning around shovels
Motorgraders are estimated according to the hauling road maintenance required per
year

January, 2012
Caspiche Project
Copiapó, Chile
Water trucks are estimated from the hauling roads in use per year.
As IPCC has been planned for use in the project, the number of each ancillary equipment
type is lower than it would be for a normal trucking operation. The reasons for this are:
Lower kms of haul road in use for the project (less motorgraders and water truck
requirements)
No trucks on stockpiles (less dozers required for maintenance of stockpile crests, less
water truck requirements)
Against this reduction in “normal” ancillary equipment, the IPCC operation requires its own
ancillary equipment fleet for assisting in relocations, cleanup, and associated maintenance
work. Table 16.25 and Table 16.26 show the recommended fleet for the Super Pit and
Hybrid options, together with the anticipated operating hours per year.

January, 2012
Caspiche Project
Copiapó, Chile
Table 16.25: Super Pit Option – IPCC Ancillary Fleet

Total
Hrs / Operator Annual
Additional Equipment CAPEX USD$/hr Cost
Yr Maintain OpCost USD
# $/hr
Transporter 0 $ 4.000.000 250 156,0 $ 6 $ 162 $ -
220 t Hydraulic Mobile Crane 1 $ 1.250.000 1000 66,0 $ 6 $ 72 $ 72.000
6 tonne TLB 1 $ 150.000 1000 34,0 $ 6 $ 40 $ 40.000
1 x Bobcat 1 $ 40.000 700 36,0 $ 6 $ 42 $ 29.400
1 x IT Loader 0 $ 385.000 700 41 $ 6 $ 47 $ -
Maintenance Trucks (with hiab crane for belt
splicing/lifting) 1 $ 165.000 2000 31 $ 6 $ 37 $ 74.000
Conveyor Side Lifting Truck/Trailer 0 $ 280.000 1200 31 $ 6 $ 37 $ -
Rock Breaker (35t excavator) 0 $ 320.000 700 28,0 $ 6 $ 34 $ -
D11 Dozers for Re-locations 0 On Site 660 184,6 $ 6 $ 195 $ -
D11 Dozer on dump with Spreader 2 On Site 3760 184,6 $ 6 $ 195 $ 1.463.543
Truck & Lowboy 1 On Site 250 60 $ 6 $ 35 $ 8.750
Belt reeler 0 $ 400.000 1000 28,0 $ 6 $ 34 $ -
Cable reeler 0 $ 275.000 1000 28,0 $ 6 $ 34 $ -
Light vehicles (supervisor, belt runners) 2 $ 90.000 1000 22,0 $ 6 $ 28 $ 56.000
Pipelayer Dozer (c/w rail lift head & counter
weight) 1 $ 750.000 1000 81 $ 6 $ 87 $ 87.000
660 t Terex Crawler Crane 1 $ 4.666.667 250 150 $ 6 $ 156 $ 39.000
TOTAL $ 7.201.667 $ 1.869.693
Table 16.26: Hybrid Option – EPCC Ancillary Fleet

Total
Hrs / Operator Annual
Additional Equipment CAPEX USD$/hr Cost
Yr Maintain OpCost USD
# $/hr
Transporter 0 $ 4.000.000 250 156,0 $ 6 $ 162 $ -
220 t Hydraulic Mobile Crane 0 $ 1.250.000 1000 66,0 $ 6 $ 72 $ -
6 tonne TLB 1 $ 150.000 1000 34,0 $ 6 $ 40 $ 40.000
1 x Bobcat 1 $ 40.000 700 36,0 $ 6 $ 42 $ 29.400
1 x IT Loader 0 $ 385.000 700 41 $ 6 $ 47 $ -
Maintenance Trucks (with hiab crane for belt
splicing/lifting) 1 $ 165.000 2000 31 $ 6 $ 37 $ 74.000
Conveyor Side Lifting Truck/Trailer 0 $ 280.000 1200 31 $ 6 $ 37 $ -
Rock Breaker (35t excavator) 0 $ 320.000 700 28,0 $ 6 $ 34 $ -
D11 Dozers for Re-locations 0 On Site 660 184,6 $ 6 $ 195 $ -
D11 Dozer on dump with Spreader 1 On Site 3760 184,6 $ 6 $ 195 $ 731.771
Truck & Lowboy 1 On Site 250 60 $ 6 $ 35 $ 8.750
Belt reeler 0 $ 400.000 1000 28,0 $ 6 $ 34 $ -
Cable reeler 0 $ 275.000 1000 28,0 $ 6 $ 34 $ -
Light vehicles (supervisor, belt runners) 2 $ 90.000 1000 22,0 $ 6 $ 28 $ 56.000
Pipelayer Dozer (c/w rail lift head & counter
weight) 1 $ 750.000 1000 81 $ 6 $ 87 $ 87.000
660 t Terex Crawler Crane 1 $ 4.666.667 250 150 $ 6 $ 156 $ 39.000
TOTAL $ 5.951.667 $ 1.065.921
16.7.4 Underground Mine Equipment

The capital preparation and development requirements will be carried out by contractors.
The following parameters and criteria are those used in the mining equipment estimate:

January, 2012
Caspiche Project
Copiapó, Chile
16.7.4.1 Loading
LHDs with 10 yd3 bucket capacity have been selected. This equipment is able to work within
the production drifts (4.0 mx3.6 m) loading and hauling the ore from the drawpoints to the
crusher or to the ore passes.
Productivities for each of the defined production levels are presented in Table 16.27: and
Table 16.27, respectively.
Table 16.27: Hybrid Option – LHD Productivities

Production Level UC 3400
Unit Qty
Grizzly mxm 1.25x1.25
Bucket Capacity yd3 10
Bucket Capacity m3 7.65
Filling Factor 83
Loose density t/m3 1.65
Effective bucket capacity t 10.47
Velocities
- Loaded km/h 3.68
- Empty km/h 5.09
Average Distances M 38
Loading Time min 0.40
Dumping Time min 0.12
Waiting for pickhammer min 0.135
Hauling time-loaded min 0.62
Hauling time-empty min 0.45
Total Travel time min 1.06
Cycle Time min 1.72
Productivity t/h 365.08
Effective time pershift h 6.8
Productivity t/shift 2,483
Daily Capacity t/d 4,965

January, 2012
Caspiche Project
Copiapó, Chile
Table 16.28: Full Underground Option – LHD Productivities

Production Level 3505 3655 3190
Unit Qty Qty Qty
Grizzly mxm 1.25x1.25 1.25x1.25 1.25x1.25
Bucket Capacity yd3 10 10 10
Bucket Capacity m3 7.65 7.65 7.65
Filling Factor 83 83 83
Loose density t/m3 1.65 1.65 1.65
Effective bucket capacity t 10.47 10.47 10.47
Velocities
- Loaded km/h 3.68 4.42 4.42
- Empty km/h 5.09 6.10 6.10
Average Distances m 44 161 146
Loading Time min 0.40 0.40 0.40
Dumping Time min 0.12 0.12 0.12
Hauling time-loaded min 0.71 2.19 1.99
Hauling time-empty min 0.52 1.59 1.44
Total Travel time min 1.23 3.78 3.43
Cycle Time min 1.75 4.30 3.95
Productivity t/h 358.66 146.09 159.08
Effective time per shift h 6.8 6.8 6.8
Productivity t/shift 2,439 993 182
Daily Capacity t/d 4,878 1,987 2,164
16.7.4.2 Hauling
Trucks selected for the Caspiche Full Underground mine are 80 t low profile units, similar to
those currently used at El Teniente mine. Truck performance estimate is shown in Table
16.29.

January, 2012
Caspiche Project
Copiapó, Chile
Table 16.29: Truck Performance

Unit Qty
Body capacity t 80
Filling Factor 90
Effective body capacity t 72,00
Velocities
- Loaded km/h 20
- Empty km/h 20
Average Distances m 700
Loading Time min 1.50
Dumping Time min 0.9
Without assignation min 0.60
Delays min 0.5
Hauling time-loaded min 2.10
Hauling time-empty min 2.10
Total Travel time min 4.20
Cycle Time min 7.80
Productivity t/h 554
Effective time pershift h 6.0
Productivity t/shift 3.323
Daily Capacity t/d 6.646
16.7.4.3 Support and Auxiliary Equipment

Parameters used to estimate these equipment units are as follows:
Reduction Jumbo : 0.2 units per LHD
Maintenance Equipment : 0.2 units per LHD
Lifting Equipment : 2 units per LHD
Drift Cleaning : 2 units per LHD
16.8 Mine Personnel

Four areas will report to the Mine Superintendent:
Planning
Mine Operations
IPCC Operations
Maintenance
Each of these areas will have three different categories:

January, 2012
Caspiche Project
Copiapó, Chile
Technical Services: Personnel involved in the administration of the mine. Supervisors,

dispatch and administration personnel are included into this group.
Operators: Personnel to operate the mining equipment, including support equipment.
Maintenance: Personnel for maintenance of the mine equipment.
The organization charts for the three options are shown in Figure 16.28 to Figure 16.30.
Table 16.30 to Table 16.33 summarize the expected mine personnel required for each
option. The work schedule assumes production will operate 24 hours/day in two 12 hour
shifts, for 7 days/week, 365 days/year. A 1-week-in / 1-week-out rotation will require a total
of four crews on the payroll.
The personnel summary does not include senior management staff which is considered as
part of the General and Administration (G&A) costs.
The open pit and underground mine personnel are listed separately.

January, 2012
Caspiche Project
Copiapó, Chile
Figure 16.28: Super Pit Option – Mine Organization

January, 2012
Caspiche Project
Copiapó, Chile
Figure 16.29: Hybrid Option – Mine Organization

January, 2012
Caspiche Project
Copiapó, Chile
Figure 16.30: Full Underground Option – Mine Organization
Mine Superintendent
UG Mine Oper. Leader Planning Leader Maintenance Leader
Services Leader Shift Supervisor Production Leader Geologist Planning Engineers Workshop Foreman Shift Supervisor Planning Engineers
Ventilation Services Mine Eq. Operators Stock Pile Control Sampling Survey Workshop Mechanics Site Mechanics Planners
Secondary Blasting UG Production Control Geomecanics
Table 16.30: Super Pit Option – Mine Personnel

Personnel Y-03 Y-02 Y-01 Y01 Y02 Y03 Y04 Y05 Y06 Y07 Y08 Y09 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17
Open Pit
Technical
56 56 59 65 70 70 70 70 70 70 70 70 70 70 70 70 69 63 49 40
services
Operators 208 262 312 456 546 551 558 558 558 558 562 562 562 557 509 433 304 291 287 274
Maintenance 408 412 418 418 418 418 422 422 422 419 382 319 218 207 203 103
IPCC 43 43 56 56 56 56 56 56 56 56 56 56 56 46 38 38 18 18 18 18
Total 307 361 427 577 1080 1089 1102 1102 1102 1102 1110 1110 1110 1092 999 860 609 579 557 435

January, 2012
Caspiche Project
Copiapó, Chile
Table 16.31: Hybrid Option – Mine Personnel

Personnel Y-03 Y-02 Y-01 Y01 Y02 Y03 Y04 Y05 Y06 Y07 Y08 Y09
Open Pit
Technical services 56 56 59 65 70 70 70 70 70 70 70 5
Operators 206 217 279 313 332 340 340 331 336 301 237 206
Mechanics 0 0 0 0 239 246 246 240 242 214 162 138
EPCC 0 39 39 44 44 44 44 44 44 44 44 44
Subtotal 262 312 377 422 685 700 700 685 692 629 513 393
Underground Mine
Technical services 39
Operators 142
Mechanics 90
Subtotal 0 0 0 0 0 0 0 0 0 0 0 271
Total
Operators 206 217 279 313 332 340 340 331 336 301 237 348
Mechanics 0 0 0 0 239 246 246 240 242 214 162 228
EPCC 39 39 44 44 44 44 44 44 44 44 44
Subtotal 262 312 377 422 685 700 700 685 692 629 513 393

January, 2012
Caspiche Project
Copiapó, Chile
Table 16.32: Hybrid Option – Mine Personnel (Continuation)

Personnel Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 Y21
Open Pit
Technical services 5 5 5 5 5 5 5 5 5
Operators 82 70 66 55 51 47 47 47 43
Mechanics 50 41 38 29 26 23 23 14 13
EPCC
Subtotal 137 116 109 89 82 75 75 66 61 0 0 0
Underground Mine
Operators 191 221 262 328 374 410 410 410 410 360 294 222
Mechanics 158 226 302 378 434 458 454 442 414 330 258 162
Subtotal 388 498 615 757 859 919 915 903 875 741 603 435
Total
Operators 273 291 328 383 425 457 457 457 453 360 294 222
Mechanics 208 267 340 407 460 481 477 456 427 330 258 162
EPCC 0 0 0 0 0 0 0 0 0 0 0 0
Subtotal 525 614 724 846 941 994 990 969 936 741 603 435
Table 16.33: Full Underground Option – Mine Personnel

Personnel Y01 Y02 Y03 Y04 Y05 Y06 Y07 Y08 Y09 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 Y21 Y22 Y23
Underground Mine
Technical services 38 38 63 63 63 63 63 63 63 63 63 63 63 62 63 63 63 63 63 62 62 62 50
Operators 69 113 218 279 337 394 442 444 449 433 426 423 416 361 386 354 350 318 336 257 219 171 78
Maintenance 62 94 218 298 382 446 518 542 575 591 587 546 502 438 418 366 326 278 218 182 158 126 66
Total 169 245 499 640 782 903 1023 1049 1087 1087 1076 1032 981 861 867 783 739 659 617 501 439 359 194

January, 2012
Caspiche Project
Copiapó, Chile
16.9 Benchmarking
Benchmarking of the main operational indices in the study was carried out against operating
mines in Chile, Peru and Argentina. The compiled data corresponds mainly to 2010 (second
semester) and the first semester of 2011.
Mines with the same type of equipment and where possible, at similar altitude were
considered in the benchmark.
In addition to the results of the Super Pit option, the peer group operating costs were
updated using current prices for fuel (1.00 US$/l) and power (150 US$/MWH), so the
benchmarking can be fairly compared to the other mines. Mined material has also been
included as reference.
Graphical results for total mine unit costs are shown in Figure 16.31:
Figure 16.31: Mine Cost Benchmark
Average cost for the operating mines is 2.03 US$/t compared with the 1.30 US$/t included in
this Study. The Caspiche trucking number was 1.53 US$/t and the additional reduction was
achieved by use of In-pit Crushing and Conveying (IPCC) for all waste. The original number
compares favourably with another large PFS in the region completed in 2010. Average cost
for mines using larger equipment (73 yd3 rope shovels and trucks >300 t) is 2.14 US$/t.
Average cost for mines operating above 2500 masl is 2.05 US$/t.
If current costs for power and fuel are included in the Caspiche estimate, the unit cost
increases to 1.45 US$/t. Benefits of the in pit crusher for Caspiche are included in these
results.
Comparison of the mine cost breakdown by unit operations is presented in Figure 16.32:

January, 2012
Caspiche Project
Copiapó, Chile
Figure 16.32: Mine Cost Benchmark (Unit Operations)
Hauling represents the most relevant operation unit of the Caspiche mine cost. Hauling cost
for Caspiche project includes 0.60 US$/t for haul trucks and 0,18 US$/t for waste in pit
crushing and conveying
A compilation of loading and hauling data for high altitude mines (>3000 masl) is presented
in Figure 16.33. Actual operations and recent projects are compared with the Super Pit
option results. The mines and projects are identified with their altitude.
Daily rock movement is also included as reference.
Figure 16.33: Trucks and Shovel Fleet Benchmark

January, 2012
Caspiche Project
Copiapó, Chile
The highest projected production per day corresponds to Caspiche.

New projects included in the comparison are planning to use trucks over 300 t capacity.
Operating mines are moving to 360 t trucks. 73 yd 3 rope shovels are widely used with all
trucks over 300 t.
Figure 16.34: Mine Movement and Hauling Distance Fleet Benchmark
For the Caspiche project, Figure 16.34 illustrates that Caspiche has the minimum truck
requirements of the peer group evaluated. The Caspiche project has the lowest distance of
those operations and projects considered in the benchmarking, it represents the benefits of
the inclusion of the in- pit crusher and conveying system.
The loading capacity has been represented in Figure 16.35 as the daily production (tonnes
per day) divided by the total installed loading capacity (yd3).

January, 2012
Caspiche Project
Copiapó, Chile
Figure 16.35: Loading Capacity Benchmark

January, 2012
Caspiche Project
Copiapó, Chile
Caspiche capacity is over the average but still below several operating mines.
Figure 16.36 presents the hauling benchmark. Hauling capacity is expressed in tonnes per
day-km divided by the installed truck capacity.
Figure 16.36: Hauling Capacity Benchmark
The Caspiche operation estimates are similar to average truck usage and is within the
overall range of operations.
Finally, Figure 16.37 illustrates the installed truck capacity against installed loading capacity.
Figure 16.37: Hauling Capacity Benchmark

January, 2012
Caspiche Project
Copiapó, Chile
The comparisons indicate Caspiche Super Pit option has used indices within the ranges of
achievable results.
The Caspiche Super Pit option has been designed with the objective of being below world
best practice but somewhat higher than standard Chilean productivities. Higher
productivities of hauling and loading, a good pit design including in-pit crushing and
conveying, and mine scheduling have been focused to achieve a higher efficiency, high
productivity and low cost.
In summary, the average cost for the benchmark compared is 2.03 US$/t compared with
1.30 US$/t using the IPCC system. When fuel and energy prices are updated to the value
used by operating mines, Caspiche is 29 % below the average unit cost. The reasons for
this are
Natural variation between the operating sizes of the mines – Caspiche has very high
daily material movement and hence lower fixed costs per tonne moved,
The use of In-pit Crushing and Conveying (IPCC) for some 75 % of all material
movement at considerably lower unit cost, reducing the average truck haulage distance
from 6.0 to 3,2 km and contributinh 0.34 US$/t to the 0.73 US$/t lower cost ,and
Productivity values which are in line with or lower than global standards.

January, 2012
Caspiche Project
Copiapó, Chile
17.0 RECOVERY METHODS

Three options for sulphide ore exploitation have been studied to prefeasibility level. The
metallurgical processes are similar for the three options, differing only in treatment capacity.
The three options and their characteristics are as follows:
Super Pit Option:
Sulphide reserves for this alternative are 889 Mt ore with 0.24 % Cu, 0.58 g/t Au and
1.13 g/t Ag
Hybrid Option:
1.18 g/t Ag
Full Underground Option:
1.27 g/t Ag
In addition to the above sulphide production the project also considers heap leaching of
oxide material which is produced as part of the sulphide stripping process in the Super Pit
and Hybrid options, as well as a gold rich, copper poor ‘hypogene’ material (MacNeill); both
of which will also be processed as a stand alone project for the Full Underground option.
The reserves for the three heap leach options are shown in Table 17.1.
The economic analysis indicates that the Super Pit option is the preferred route to be
developed to Feasibility study. As such particular attention should be made to the Super pit
parameters discussed in this report.
Table 17.1: Heap Leach Reserves

Material / Option Super Pit Hybrid Full Underground
Oxide
Reserve (Mt) 124 124 112
Gold Headgrade (g/t) 0.38 0.38 0.39
Silver Headgrade (g/t) 1.62 1.62 1.57
MacNeill
Reserve (Mt) 78 70 74
Gold Headgrade (g/t) 0.51 0.50 0.55
Silver Headgrade (g/t) 1.05 1.05 1.12

January, 2012
Caspiche Project
Copiapó, Chile
17.1 Sulphide Process Route

In designing the sulphide process plant a number of parameters were applied. These
included current available equipment sizes, conventional industry practices and others as
applicable. The use of these parameters ensured a process plant installation which was
conventional and which used industry wide practices and equipment sizes.
The sulphide ore will be treated through a conventional concentrator plant consisting of
primary crushing, semi-autogenous (SAG) and ball mills, rougher flotation, regrind and
cleaner flotation circuit. All three options studied use a similar process, differing mainly in
equipment size and quantity.
Figure 17.1, illustrates the general process diagram. Equipment for each of the three options
varies and is described individually below.
For tailings disposal the Super Pit option considers a rock dam built from pit waste which is
crushed, conveyed and spread as described in Items 16 and 18 of this report. The Hybrid
and Full Underground options consider a cycloned sand tailings impoundment dam
generated from plant tailings. For the Super Pit option the tailings thickener underflow
discharges through a number of points into the tailings containment area without cycloning.
Due to the characteristics of the deposit mineralization, the Caspiche process flowsheet
incorporates a number of considerations to maximize production and to ensure a saleable
product, these include:
Treatment of the copper concentrates to eliminate arsenic
Leaching of the cleaner flotation tails to recover additional gold
Use of a SART plant to recover copper contained in the gold rich leachate and to recycle
cyanide.

January, 2012
Caspiche Project
Copiapó, Chile
Figure 17.1: General Process Flow Diagram
17.1.1 Primary Crushing

A maximum capacity of 100,000 t/d per gyratory crusher was considered in the design
criteria. The selected crushers operate with an open side setting (OSS) of 220 mm and
assumes a maximum run of mine (ROM) feed size of 1200 mm from the open pit and 1,000
mm from underground mining. An effective utilization of 70 % for the Super Pit and Hybrid
surface crushers and 75 % utilization for the Hybrid and Full Underground crushers with a
common design factor of 1.15 was considered.
The Super Pit considers two 75,000 t/d gyratory primary crushers and the open pit stage of
the Hybrid option one 95,000 t/d gyratory primary crusher.
The Full Underground option considers three undercut levels, feeding crushing stations as
extraction advances. The upper and the third levels consider jaw crushers and the second
level gyratory crushers. The crushers from the upper level are used later in the third level.
The underground stage of the Hybrid option considers one undercut level feeding gyratory
crushers. The Full Underground option initially considered using jaw crushers in the three
levels of extraction, however, due to the intermediate level footprint size this type of
equipment was unsuitable.

January, 2012
Caspiche Project
Copiapó, Chile
17.1.2 Grinding
The effective utilization for the grinding and flotation plant is estimated at 92 %. A design
factor of 1.15 has been used for all equipment except for the grinding mills, where a factor of
1.0 was used.
Metallurgical tests indicate a low to medium rock hardness for grinding purposes; these tests
formed the basis for a grinding circuit of P80 at 130 µm being selected.
Current industry experience is that the maximum capacity of one SAG mill and two ball mills
is around 100,000 t/d, depending on the primary crusher product particle size distribution,
the ore hardness and the final product size requirement. This was the basis of design for the
Caspiche grinding circuit.
The Hybrid and Full Underground options consider one SAG mill and two ball mills. The
Super Pit considers two identical, parallel grinding circuits of one SAG mill and two ball mills
each circuit of 75,000 t/d capacity. The SAG mills will be in open circuit and consider a grate
discharge arrangement whilst the ball mills are in closed circuit with hydrocyclone banks. All
options consider a short trommel and pebble screen at the discharge of the SAG mills. A
pebble crushing plant has been included, assuming a nominal 20 % pebble production rate
with a maximum of 30 % for design purposes. Two cyclone clusters for each ball mill are
considered. No stand-by cyclone feed pumps are considered; however, a complete spare
pump would be ready for replacement.
17.1.3 Rougher Flotation

Rougher flotation is fed with pulp of 38 % solids content and the number and size of cells
provide 45 minutes retention time. This high retention time maximizes copper and gold
recovery into the rougher concentrates and is required due to the low copper and gold feed
grades in the ore.
The Super Pit option considers three pairs of lines with eight 300 m3 flotation cells per line.
The Hybrid and Full Underground options consider two pairs of lines with seven 300 m3
flotation cells per line. The rougher concentrate grade was estimated at 2.5 % Cu. Copper
rougher recovery was estimated as 85 %, 86 % and 88 % for the Super Pit, Hybrid and Full
Underground options respectively.
17.1.4 Rougher Concentrate Regrind and cleaning flotation

One tower mill per two flotation lines is considered. Regrind cyclones are fed with the
rougher concentrate. Discharge from the tower mill and scavenger concentrates are in
closed circuit with a cyclone bank. Cyclone underflow feeds the tower mill and cyclone
overflow feeds the first cleaning stage. Regrind circuit product P80 is 30 µm.
Regrind product plus second cleaner tailings feed the first cleaner flotation and the tailings
are fed directly to the scavenger cleaner flotation. Ten minutes retention time has been
considered for the first cleaner and thirty minutes for the scavenger circuit. Two cleaner and
five scavenger flotation cells are considered, each of 300 m3. The cell size has been
standardized as much as possible in order to reduce spares inventory. Two cleaner cells are
common industry practice, however the cleaner / scavenger line has been designed with
flexibility in mind and should it be required the configuration of cleaner / scavenger cells can
be altered.

January, 2012
Caspiche Project
Copiapó, Chile
The first cleaner concentrate grade has been estimated at 10 % copper with 90 % recovery
and scavenger-cleaner concentrate grade at 2.5 % copper with 85 % recovery.
Second and third flotation cleaners are arranged in-line, using conventional 50 m3 flotation
cells. The first cleaner concentrate plus the third cleaner tailings feeds the second cleaner
and the second cleaner concentrate feeds counter-currently the third cleaner. Retention time
is 5 min for secondary and 3 min for tertiary cleaning. Second cleaner concentrate copper
grade has been estimated as 18 % for all options.
Global cleaner copper recovery has been estimated at 97.7 % for design purposes. Third
cleaner concentrate is the final concentrate which contains approximately 25 % copper.
17.1.5 Final Concentrate Handling

The final concentrate, estimated to contain approximately 15 % solids, will be thickened to
60 - 63 % solids in a conventional thickener for subsequent pumping via a concentrate
pipeline to the roaster plant. A second thickener at the discharge of the pipeline increases
the feed to the filters to 70 - 72 % solids. A typical thickening rate of 0.4 m2/t/d was used to
design the thickeners.
Concentrates are finally pressure filtered to 8 to 9 % moisture. A typical filtering rate of 500
kg/h/m2 is used. The filtered concentrate being fed to the partial atmosphere roaster to
reduce arsenic content in the concentrate.
At the concentrator plant site a one day holding tank is included to regulate the feed to the
concentrate pipeline (105 km pipeline for the Super Pit plant, or 98 km long for the Hybrid
and Full Underground plants) The partial atmosphere roaster treatment plant will be located
at an altitude of approximately 1200 m.a.s.l. and is close to road and other infrastructure. A
one hour retention time holding tank is included between the roaster plant thickening and
filtering stages. In the case of extended plant stoppage the pipeline discharge thickener will
provide additional storage capacity for concentrates produced.
17.1.6 Final Concentrate Treatment

The final concentrate is calculated by testwork to contain average arsenic grade in the order
of 2.5 %. In order to produce commercially viable concentrate, arsenic content must be
reduced to below 0.2 %. Arsenic removal was considered using either Pressure Oxidation
(POX) or a partial atmosphere roaster circuit. After economic evaluation the roaster option
was selected.
Filtered concentrate is roasted in a partially reducing atmosphere to eliminate arsenic and
produce a calcined concentrate and sulphuric acid. The arsenic is recovered as scorodite
using ferric ion produced by magnetite acid leaching, and disposed of according to
environmental regulations. Roasting is performed in a FluoSolids roaster, at around 650 °C
and a controlled atmosphere to avoid the conversion of arsenic sulphides to arsenic oxides
which would fix the arsenic to the copper compounds inside the roaster. Figure 17.2
illustrates the scorodite precipitation process schematic.

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Figure 17.2: Scorodite Precipitation Process Flow Diagram
As Solution
Sulphuric Acid Solution
Fe3+ production
Recirculation 30%
Magnetite (Solid)
Fe3+ Solution
Lime
Lime
Peroxide
Steam
Wet Residue
Water Water
recovered
Wet Residue
Residue
The copper calcine is approximately 85 % of the original concentrate weight mainly due to
the elimination of arsenic and part of the sulphur content. The calcine is cooled, moisture
content increased to approximately 9 %, then transported by trucks to the port. At the port
the calcine will be discharged to a negative pressure enclosed storage facility, and loaded to
ships on a scheduled basis by means of an enclosed conveyor and loader facility.
The gases containing arsenic sulphides and SO2 will be cooled to 370-400 °C and fed to an
electrostatic precipitator (ESP). The recovered ESP dust to be blended with the calcine or
sold.
The clean gases leaving the ESP will be wet washed before feeding the sulphuric acid plant.
The arsenic trioxide will be precipitated and treated with ferric ions to produce scorodite. The
scorodite will be disposed of according to environmental regulations in an impoundment
area. In the sulphuric plant SO2 will be converted to SO3 to produce 98 % sulphuric acid.
17.2 Pyrite Treatment Facilities

Cleaner - Scavenger tails will be floated in a building next to the cleaner flotation building.
Pyrite flotation concentrate to be thickened in a 42 m diameter steel thickener and then
leached in an agitated carbon in leach (CIL) circuit while the pyrite flotation tailings join the
rougher flotation tailings at the tailings launder. CIL slurry feed density is controlled at
approximately 40 % solids.

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Gold laden carbon will be pumped to the cold desorption plant where it is transferred to the
hot desorption plant. The desorbed solution reports to the SART plant to recover sodium
cyanide and copper sulphide. At the hot desorption plant gold and silver will be removed
from the carbon and the precious metal rich solution processed in an electro-winning and
smelting plant to produce doré bullion. Stripped carbon reports to the carbon regeneration
plant.
CIL tails report to two 42 m diameter thickeners and then a counter current decantation
(CCD) circuit to neutralize cyanide and discharge the tailings slurry to a lined tailings
impoundment area separate to the main tailings dam. Wash solution for the CCD circuit is
provided from the scavenger flotation thickener. Figure 17.3 illustrates the pyrite treatment
circuit.
Figure 17.3: Pyrite Treatment Circuit Process Schematic

Scavenger Tails
Tails Pyrite
Flotation
Pyrite Flotation
Concentrate
Reagents Activated
Carbon
COLD
DESORPTION
PLANT
Reagents
FILTER
HOT SART PLANT

DESORPTION
PLANT Cyanide To
Solution To CIL Disposal
Au EW
PLANT Doré Cu2S To
Concentrate
Sludge Tank
The electro-winning plant tails will also be fed to the SART plant which produces cyanide
solution and copper sulphide, with gypsum as a waste product.
17.2.1 Flotation Tailings Handling

For the Super Pit option, the flotation tailings will be thickened to a semi-paste in high rate
thickeners and discharged from a number of spigots set around the radius of the
containment basin. This discharge philosophy maximizes tailings containment and will allow
beaching of tailings thus minimizing water collection against the impoundment dam. The

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thickeners discharge is limited mainly by rheological characteristics and the ability to be

pumped with centrifugal pumps. The design criteria considered 65 % solids discharge.
For the Hybrid and Full Underground options the tailings dam considers a conventional sand
structure. The flotation tailings are thickened to 56 % in high capacity (high rate) thickeners,
a typical thickening rate of 0.1035 m2/t/d has been considered. The tailings flow 8 km in a
concrete launder, to the tailings impoundment area and are repulped to 50 % solids, with
recycled water, pumped to classification cyclones producing separation ratio of 38/62,
sands/slimes. Plant fresh water consumption is minimized by recirculating water from the
tailings pond.
17.2.2 Cleaner Tailings Treatment

Gold recovery in the rougher concentrate has been estimated at approximately 80 %;
however, the final gold recovery will be approximately 60 % of the gold head grade; this is
due to a rougher concentrate copper grade of around 2.5 % which requires a high
concentration ratio in the cleaner stage to obtain a saleable final concentrate. This results in
gold being left in the cleaner tailings. Additional leaching has been considered to maximize
gold recovery.
Metallurgical tests show the possibility of recovering approximately half of the cleaner tails
gold by cyanide leaching; however, the copper content in the tailings implies high cyanide
consumption and a SART process has been included to recover the copper and regenerate
the cyanide; as shown in Figure 17.4.
Figure 17.4: SART Process Flow Diagram
The Sulphidation Acidification Recycling Thickening (SART) feed solution is the overflow of
the counter current decantation circuit which treats the tailings of the CIL plant. This solution
is mixed with sulphuric acid and sodium hydrosulphide and fed to a precipitation reactor. In
this reactor copper sulphide is precipitated at pH 5 and dissolved hydrogen cyanide is
generated. The precipitation reactor discharges by gravity into the precipitation thickener. A

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fraction of underflow is recirculated to the precipitation reactor to increase the volume and
handleability of the copper sulphide. Another fraction of underflow is neutralized with sodium
hydroxide at pH 12 and is contained in a holding tank prior to pumping to the concentrate
plant. Treated barren solution, rich in free cyanide, reports to the neutralization stage where
milk of lime is added to raise the pH to 11, the solution is then re-used in the CIL plant.
Neutralized barren solution flows by gravity to a second thickener. The gypsum thickener
operates with underflow recirculation to increase the size and handleability of the gypsum
precipitate. The portion of underflow not recirculated is pumped to the filtration stage. The
gypsum filter cake produced is repulped adding fresh water, in order to minimize the cyanide
content, and is then pumped to a stand alone tailing pond. The overflow from the gypsum
thickener is the treated final product, which is recycled to a carbon in leach process.
17.3 Heap Leach Operations

The heap leach operations will firstly process the oxide ore removed from the initial levels of
the open pit and thereafter a portion of the hypogene MacNeill ore. The oxide will be treated
through a 26 Mt/y capacity two stage crushing plant, heap leach cyanidation and Adsorption
Desorption and Recovery (ADR) Plant. Once all oxide ore has been processed and the heap
leach pad has been sufficiently washed, an interlift liner and drain system will be placed on
the pad and the MacNeill ore will be placed on top of this. The MacNeill ore will be
processed through the same crusher circuit, however as the material is more competent
than the oxide the throughput is estimated as being 12 Mt/yr. The oxide and MacNeill ore
cannot be mixed on the heap leach pad as the MacNeill ore contains a certain level of
copper and has different leach characteristics. As such any MacNeill ore mined during oxide
leaching will be stockpiled and processed once all oxide has been exhausted.
The MacNeill ore has different leaching characteristics than the oxide. Testwork indicates
that all recoverable gold will be leached within 30 days and thereafter only the copper
content will be leached out, consuming excessive cyanide. As such the MacNeill process
considers a leach cycle of 30 days only in a single 7.5 m lift. Once the leach period has been
completed the lift will be covered with an interlift liner and the procedure repeated. This
process was compared with the use of dynamic on / off pads and was deemed to be the
most economically beneficial option. In addition to the shorter leach time a SART plant will
be added to the PLS stream when the MacNeill ore is being processed to recover the
maximum amount of cyanide, which will be reused in the leach solution and also to extract
any copper in solution which may affect downstream operations and heap leach cyanide
consumption.
A summary of the heap leach processes is decribed in the following sub-sections :
17.3.1 Oxide
17.3.1.1 Crushing
Mine trucks with ROM ore discharge to a bin pocket. A static grizzly traps rocks larger than
70 % of the jaw crusher opening, and the oversize is reduced with a rock breaker. The ore is
classified to 150 mm in a vibratory grizzly, the oversize is fed to a jaw crusher with a closed
side setting (CSS) of 125 mm. The grizzly undersize is combined to the crusher product and
feeds the secondary screen.

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Secondary screen separation is 50 mm; the undersize is final product and the oversize
feeds a standard cone secondary crusher with a CSS of 38 mm working in open circuit. The
crushed product is transported to a truck load-out bin by a belt conveyor. Solid lime is added
on the conveyor to control pH prior to leaching. The final crushed ore is transported to a
valley heap leach by trucks and distributed by bulldozers and graders. Ten metre high lifts
and forty metre high benches are considered.
17.3.1.2 Leaching
A valley fill cyanide heap leach is considered for gold recovery. The pad will be irrigated over
each 10 metre lift using drippers at an irrigation rate of 10 L/h/m2. The nominal cycle is 80
days. Actual leach time is greater because up to four 40 m benches are considered and the
cyanide solution will percolate through the whole pad prior to being collected and will
continue to leach available gold during this period.
The gold rich solution or pregnant leach solution (PLS), is stored in a PLS pond then
pumped to the ADR plant where gold is recovered via carbon adsorption. In the case of a
power outage or other emergency, the PLS overflows to the barren solution pond and finally
to a containment pond sized to contain eighteen hours of PLS production. The solution
irrigation pumping systems will be connected to the emergency energy supply system to
allow solution to be recirculated onto the pad during any power outage or downstream
interruption in operations.
17.3.1.3 Adsorption, desorption, recovery (ADR) Plant.

The ADR plant considers a counter current carbon-in-column (CIC) circuit of five columns.
These are constructed in series, allowing solution to flow using a cascade gravity system.
The carbon is transferred periodically counter-current to the solution by means of a transfer
pump. Loaded carbon is then transferred to the elution circuit and barren solution is returned
to the barren solution pond for pad irrigation. The CIC circuit has a trash screen at the feed
end to remove material which may interfere with the downstream process and a safety
screen ahead of the barren solution transfer pump to ensure that no carbon is transported to
the barren solution pond.
The loaded carbon is acid washed and desorbed. Both unit operations will be performed in
the same stainless steel column. Acid wash requires approximately two hours using 3 %
hydrochloric acid. This process removes any scale or calcareous build up on the carbon and
ensures effective desorption of the gold on the carbon surface. The acid wash solution is
neutralized and pumped to the barren solution tank. Gold is then dissolved from the loaded
carbon using a strong caustic cyanide solution.
The gold bearing electrolyte is recirculated through an electrowinning circuit where the gold
is either deposited on the electrowinning cell cathode or settles in the electrowinning cell as
sludge. The gold is washed from the cathodes periodically and it and the gold bearing
sludge in the bottom of the electrowinning cell is filtered and then smelted where bullion doré
is produced as final product.
The stripped carbon obtained from desorption is reactivated in a rotary kiln every four cycles
and returned to the adsorption columns with additional fresh carbon make up as required.
The reactivation stage ensures volatile organics do not build up on the carbon and ensure
that it retains its ability to adsorb gold from the PLS.

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17.3.2 MacNeill
The MacNeill ore is processed through the same heap leach as described in 17.2.1 and
ADR circuit as the oxides but has the following changes to the circuit to that of the oxide
process route.
The MacNeill ore is crushed through the same crushing circuit but at a throughput of 12 Mt
per annum due to greater rock competency. As such the coarser MacNeill ROM ore requires
two 250 hp jaw crushers. The primary crusher for the oxide ore treatment will be changed to
a 250 hp jaw crusher and a second jaw crusher will be added. In the secondary crushing
stage the existing MP1000 cone crusher will be modified to a MP1250 model, using the
same crusher body but increasing motor power.
Stacking and irrigation are as per described in 17.2. Pregnant solution passes through a
SART plant to remove copper and recover cyanide and thereafter treatment and doré
production is as per the oxide one.
17.4 Layout Considerations and Design Basis

The heap leach process plant design has taken into consideration industry norms with
regard to utilization and availability in areas of high altitude. The engineering design
considers a factor of 1.15 in relevant areas.
The plant location was selected in order to reduce transportation cost to the leach pad over
the mine operating life. The crushing plant was located considering trucks feeding the
crusher station and leach pad should not haul uphill.
The crushing plant location was selected in order to minimize earthworks.
The plant platforms were also designed with material movement economy in mind, avoiding
the use of a single platform for all the crushing and screening stages.
Ore is trucked from the crushed ore storage bin and dumped onto the pad for redistribution
by a dozer. The location of the storage bin has been selected to minimize truck
transportation costs. In the Super Pit and Hybrid options, oxide and MacNeill material is
extracted at a higher rate than crusher capacity. The excess material will be stockpiled for
crushing as mine stripping tapers off. The MacNeill stockpiled material will not be processed
until all oxide material has been exhausted and oxide leaching has been completed.
The ADR plant is located near the solution ponds to reduce pumping power requirements,
as well as to minimize material movement.
The containment pond was placed below the pad waste material base to collect overflow
from PLS and barren solution ponds.
The diversion of all up stream superficial water is considered to protect the installations.
17.5 Manpower
The process plant operation will commence with heap leach. Plant operations and
maintenance personnel will be recruited prior to operations start up to work in
commissioning activities and be trained in plant operations. The heap leach will operate
alone for two years then, until leachable ore is exhausted, will operate in parallel with the

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concentrator. Thereafter the concentrator will work alone until end of mine life. In the case of
the Super Pit option labour requirements per year are summarized in Table 17.2.

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Table 17.2: Manpower Distribution – Process Plant

SUPER PIT Year
AREA -3 -2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Sulphide Process 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250
Superintendent 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
Shift Foreman 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8
Operator / Mechanic 239 239 239 239 239 239 239 239 239 239 239 239 239 239 239 239 239
Heap Leach Process 53 52 52 52 52 52 52 52 52 52 52 52 52 52 34

Superintendent 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0
Shift Foreman 4 4 4 4 4 4 4 4 4 4 4 4 4 4 0
Operator / Mechanic 48 48 48 48 48 48 48 48 48 48 48 48 48 48 34
TOTAL LABOUR 53 52 302 302 302 302 302 302 302 302 302 302 302 302 284 250 250 250 250

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18.0 PROJECT INFRASTRUCTURE

As described in Items 13 and 17, the Caspiche project treats both gold rich oxidized and
hypogene ore (MacNeill zone) and copper and gold rich sulphide ore. The oxide and
MacNeill ore will be exploited by heap leaching and a CIC-ADR plant, this ore being mined
out as part of the sulphide stripping and ongoing operations. The sulphides will be
processed through a copper concentrator plant and roaster with a small SART plant to
recover gold and silver from the scavenger flotation tailings.
Figure 18.1: Map Plant Area (Source: Aker Solutions, 2011)

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18.1 Super Pit Mining Option

The Super Pit option considers a 150,000 t/d concentrator plant located some one and a
half kilometres north of the pit edge. Figure 18.2 illustrates the site layout for this option.
Figure 18.2: Super Pit Plot Plan (Source: NCL, 2011)
North N
Waste
Stockpile
Tailings
Tailings Dam
Conveyor
Corridor

West
Waste Primary Crusher
Pyrite Tailings
Stockpile
Waste IPCC
Leach Pad
1000 m
Leach Pad Final Pit

Waste EPCC
Crusher

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18.1.1 Copper Concentrate Pipeline Facilities

From the copper concentrate thickener the thickened concentrate is pumped to a 10,000
m³ header tank and then pumped to the copper concentrate roasting facilities located
some 105 km south-west of the concentrator plant.
The concentrate pipeline of 5” diameter is made from HDPE lined carbon steel. Three
pumping stations are used to pump the concentrate to the roaster facility. The power for
these pumping stations is taken from the 110 kV overhead line which runs from the
concentrator main substation to the roaster installations.
The pipeline runs alongside the plant access road for the first 25 km, and is accessed by
an inspection road for the remaining 80 km. The pipeline is buried throughout its whole
length.
The copper concentrate is discharged into a 25 m diameter conventional thickener
increasing the concentrate solids percentage to between 70 – 72 %. The thickened
concentrate is then fed to the pressure filters feed box. Two 80 m² horizontal plate
pressure filters will feed the copper concentrate, with approximately 8 % moisture, to the
concentrate roaster facilities.
18.1.2 Tailings Handling Facilities

The tailings are fed to three 81 m diameter high rate thickeners with gravity discharge. The
thickened tailings flow in launders to the tailings storage facility (TSF).
Knight Pièsold carried out the initial design for the TSF retaining wall. The TSF dam wall
has been designed to be an integral part of the waste stockpile stacked to the north of the
open pit by the in-pit crushing and conveying system (IPCC).
The wall consists of a 50 m wide compacted strip constructed on the upstream face of the
waste stockpile. This is prepared by pushing and re-profiling waste from the waste
stockpile as it is being constructed. A further 5 m of compacted, engineered, graded waste
covered with an HDPE liner to ensure impermeability and mechanical strength is then
placed on the upstream side of the 50 m wide face. The tailings dam face construction will
be by traditional means, i.e. trucks, graders, compactors.
The waste deposition and dam face construction schedule will be such that at no time is
there less than 10 m plus freeboard and storm surge between the finished level of the
tailings dam face and the level of tailings behind the dam.
The waste dump will provide the necessary reinforcement of the tailings dam face as over
the life of the mine, approximately 1.7 billion tonnes of stacked waste material will be
placed behind the compacted wall face.

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18.1.3 Waste and Stockpile Storage areas

The waste stockpiles will be constructed, as described in Item 16, by means of waste
crushing and conveying system.
For the Super Pit option the waste crushing and handling circuit consists initially of a single
system of two gyratory crushers, each crushing 10,500 tonnes per hour and feeding a
single conveyor and spreader system. This system will convey waste to the north of the
open pit and will form the basis for the TSF wall.
In later years, a second system will be added with the same production characteristics and
this system will discharge waste to a waste stockpile to the west of the open pit. The final
configuration is as shown in Figure 18.2.
The overall dimensions of the North waste stockpile (Figure 18.3 ) are 3.8 km in the north-
east direction by 2.1 km in the north-west direction, covering a total area of approximate
700 ha. The total height is 450 m, from 3,730 m.a.s.l. to 4,180 m.a.s.l.
Figure 18.3: Super Pit Option – North Waste Stockpile (Source: NCL, 2011)
2 km
The overall dimensions of the West waste stockpile (Figure 18.4) are 3.0 km in the north-
west direction by 1.7 km in the north-east direction, covering a total area of approximate
700 ha. The total height is 423 m, from 3,805 m.a.s.l to 4,228 m.a.s.l.

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Figure 18.4: Super Pit Option – West Waste Stockpile (Source: NCL, 2011)
1 km
The waste stockpile configuration was designed according to the parameters presented in
Table 18.1.
Table 18.1: Waste Stockpile Design Parameters

Max. Batter Ramp Width
Item OSA Batter Angle Berm Width
Height @ 10%
(º) (º) (m) (m) (m)
Waste stockpile 33 37 200 40 40
Table 18.2 summarizes the storage capacity of the waste stockpile, a swell factor of 30 %
has been assumed, considering compaction of the material once dumped.
Table 18.2: Waste Stockpile Storage Capacity

Volume Tonnage
Stockpile 3
(000's m ) (‘000)
North 982,251 1,768,052
West 863,828 1,554,890
The waste stockpile will include further safety berms as recommended by geotechnical
evaluation. Further evaluation will be required as the project advances and additional
geotechnical data is generated.

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The waste stockpile design meets the total requirement of 3.3 Bt of waste material
scheduled in the mine production plan for the Super Pit option. Waste material has also
been used to build the waste belt conveyor corridor and plant infrastructure. This material
totals 72 Mt.
18.2 Hybrid Mining Option

The Hybrid Mining option considers a 95,000 t/d concentrator plant located approximately
7 km west of the pit edge (see Figure 18.5).
18.2.1 Copper Concentrate Pipeline Facilities

Concentrate pumping and handling is largely as per that described in section 18.1.1,
however the concentrate pipeline in this case is 98 km long.
The pipeline runs alongside the plant access road for the first 18 km, and for the remaining
80 km alongside the main access road. The pipeline is buried for its whole length.

The density of the tailings is increased in three 65 m diameter high rate thickeners with
gravity discharge.
The thickened tailings are conducted in launders to the tailings cyclone cluster for
classification of sands and slimes, at the TSF site eight kilometres downstream of the
concentrator. The dam wall will be made from tailings sands and the slimes will be
deposited behind the dam.
Recovered water will be collected in a small tank and pumped to a recycle pond located
near the concentrator.

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Figure 18.5: Hybrid Option Plot Plan (Source: NCL, 2011)
Waste Conveyor
Corridor
N
Tailings Leach Pad
Stockpile
Waste
Ore Conveyor Stockpile
Corridor Waste
Crusher
Primary
Process Plant Crusher
Main c
Area onvey
or tun
Sulphide
Main A nel Stockpile
ccess ttu
unnel
Leach Pad
Final Pit
2000 m Subsidence
Leach Pad Crusher Area

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In the case of the Hybrid option a single system of two gyratory crushers and a single
conveying and spreading system with an overall capacity of 21,000 t/h is considered and
discharges to the west waste stockpile. The final configuration of the waste stockpile is
shown in Figure 18.5.
The overall dimensions of the waste stockpile are 2.5 km in the northwest direction by 1.3
km in the northeast direction, covering a total area of approximate 6 km². The total height
is 400 m, from 3,855 m.a.s.l to 4,255 m.a.s.l.
Figure 18.6: Hybrid Option - Waste Stockpile (Source: NCL, 2011)
1 km
The waste stockpile configuration was designed according to the same parameters
considered for the Super Pit option.
has been assumed, considering compaction of the material once deposited.
Table 18.3: Waste Stockpile Storage Capacity

Crest Elevation Volume Tonnage
3
(m.a.s.l.) (000's m ) (‘000)
4,255 457,058 822,705

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The designed waste stockpile meets the total requirement of 820 Mt of waste material
scheduled in the mine production plan for the open pit section of the Hybrid option. Waste
material has also been used to build the waste belt conveyor corridor and plant
infrastructure. This material totals 73 Mt.
18.3 Full Underground Mining Option

The Full Underground Mining option considers a 90,000 t/d concentrator plant located
some seven kilometres west of the mine (see Figure 18.7).
18.3.1 Copper Concentrate Pipeline

The concentrate pipeline is the same as per the hybrid option described in 18.2.1.

The density of the tailings is increased in three 63 m diameter high rate thickeners with
gravity discharge.
The thickened tailings disposal and water recovery will be performed as described for the
Hybrid mining alternative in 18.2.2.

The surface layout of the Full Underground option is shown in Figure 18.7. Underground
subsidence projected to surface has been used to limit permanent infrastructure location.
During the engineering and construction stages of the underground mine, the heap leach
operation will be developed and the surface layout considers waste stockpile, leach pad
and plant installations for the heap leach process.
One waste rock storage area north of the pit was designed to contain all of the waste
material. The final configuration is shown in Figure 18.7. In this option, no waste crushing
and conveying option was considered due to the relatively low volume of waste material
produced. As such waste stockpile construction is by means of conventional truck, dozer
and grader fleet.
The overall dimensions of the waste stockpile (Figure 18.8) are 1.2 km in the east-west
direction by 0.7 km in the north-south direction, covering a total area of approximate 122.3
ha. The total height is 195 m, from 4180 m.a.s.l to 4375 m.a.s.l.

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Figure 18.7: Underground Option Plot Plan (Source: NCL, 2011)
Leach Pad
Stock
Waste
Main Haulage Tunnel Dump
Concentrator
Plant Main Access Tunnel
Leach Pad Final Pit
Subsidence
N Area
Leach Pad
1 km Crushing
Facilities

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Figure 18.8: Full Underground Option – Heap Leach Waste Stockpile (Source: NCL,
2011)
The waste stockpile configuration was designed according to the parameters presented in
Table 18.4.
Table 18.4: Waste Stockpile Design Parameters
Max. Batter Ramp Width

Item OSA Batter Angle Berm Width
Height @ 10%
(º) (º) (m) (m) (m)
Waste
30 37 150 35 30
Stockpile
has been assumed, considering compaction of the material once dumped.
Table 18.5: Heap Leach Waste Stockpile Storage Capacity
Crest Elevation Volume Tonnage

3
(m.a.s.l.) (000's m ) (‘000)
4375 86,014 154,825

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18.4 Common Support Infrastructure

18.4.1 Fresh Water Facilities
There are two separate catchment areas considered for project fresh water supply, one at
Cuenca 1 and the other at Punto Verde, both located approximately 150 km away from the
plant (Figure 18.1). The design currently considers a single uptake point for each water
source, this will be defined by further technical evaluation of the catchment characteristics. A
pumping station with three operating pumps and one standby is considered for each well
location.
Both stations pump water to a common point, and thereafter through a single pipeline with
three boosting stations to the process plant. The waterline discharges to the fresh water
pond located near the sulphide plant, which feeds the plant as well as the mine and heap
leach facilities. Power for the fresh water pumping installations is supplied via a 110 kV
overhead line connected to the concentrator main substation.
A 4 m wide maintenance road runs alongside the pipeline.
The pipeline routing was completed considering only topographic aspects. Land surveys,
geomorphology and archaeological studies were not available and will be developed in the
next engineering phases.
Exeter has to date not completed full environmental and technical evaluation of the water
sources and is working with Schlumberger Water Services to expand the current test and
monitoring program.
A consideration for the purchase of these water rights has been included within the Owners
Costs.
18.4.2 Electrical Facilities

Electrical power for the plant will be drawn from Chile’s Central Interconnected System
(Sistema Interconectado Central, SIC) through an overhead line with a double 220 kV circuit
from the Cardones electrical substation, located some 20 km south of Copiapó and 120 km
from the Caspiche Project main substation. It is envisaged that this power line will be
constructed and operated by a contractor, i.e. Build, Own and Operate (BOO).
In later engineering stages, feeding the project from Substation Carrera Pinto should be
studied. Carrera Pinto station is located 70 km northeast of Copiapó and 96 km from
Caspiche site. This alternative could be a viable option once Castilla power plant starts
operating because Cardones station is currently highly congested and there are several new
mining projects under development in the area.
The project primary electrical system starts at two 220 kV circuit inlets from the SIC in the
project main electrical substation. This substation has a 220 kV tension level and it includes
two subsystems on its 220 kV busbar. The first subsystem includes a GIS substation (SF6
gas insulation) with four 60/80/100 MVA, 220/23 kV power transformers for 23 kV power
distribution to the process plant. The other includes a 110 kV AIS substation (air insulated)
with two 30/40 MVA, 220/110 kV power transformers for 110 kV power distribution to the off-
site facilities through 110 kV overhead lines.

January, 2012
Caspiche Project
Copiapó, Chile
The main substation also considers two 23 kV harmonics filters for harmonics control and
power factor improvement; and an emergency generation station with 6 x 2,500 kW
generators to back critical equipment up in case of a SIC failure.
Power will be distributed to the plant in medium voltage from the GIS 23 kV switchgear
located in the project main substation through overhead lines and duct banks to the
secondary substations. The secondary substation electrical rooms will distribute energy to
the plant equipment in medium voltage (3.3 kV) and low voltage (400 V).
The fresh water supply and the concentrate pumping system and roasting plant are fed by
110 kV overhead lines of 114 km and 105 km.
The hybrid and full underground options have similar electrical facilities as those of the
super pit but only require three 60/80/100 MVA 220/23 kV transformers. The 110 kV system
will have two 20/26.6 MVA power transformers, 220/110 kV. Additionally the underground
facilities will be powered through two 23 kV overhead lines that enter the mine through the
main haulage tunnel. The underground facilities will consider local substations for
underground equipment consumption.
18.4.3 Port Facilities

Concentrate trucks will be loaded at the roasting facilities and then will drive to the selected
port location. Exeter has signed memoranda of understanding with port owners and is
discussing alternatives with other port operators in order to secure the best option for
concentrate shipment.
18.4.4 Operations Camp

The camp for Hybrid and Full Underground options will be typically of a prefabricated
modular structure, located 5 km from the Concentrate plant and will have capacity for 2800
people. The camp for the Super Pit option will be located at the current location of the
geology camp, some 13 km northwest (2,950 m.a.s.l.) from the mine site. The camp will
have capacity for 2500 people in year zero and will increase by a further 800 people in the
second year.
The size of the camp considers capacity for third party contractors that, according to the
experience of other projects, may add 30 % to 40 % more people to the owners direct hire
personnel.
18.4.5 Sewage Treatment

Sewage from the camp will be routed to a sewage treatment plant sized for effluent for 3300
employees.
Septic tanks will collect sewage from the administration office, security gatehouse and truck
shop. The septic sludge will be pumped out and transported by truck to the treatment
facilities.
18.4.6 Waste Management

Suitable areas will be designated for the storage of common household waste, produced
over the life of the mining operations.

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Copiapó, Chile
A contract to haul solid waste from the site will need further review, to be completed at the
next phase of engineering.
18.4.7 Laboratory Complex

The assay laboratory will be a modular building type structure fully fitted with laboratory
equipment and services so as to reduce the cost of construction and installation. The
structure will include a sample preparation room, fire assay, wet laboratory, instrumentation,
lunch room, offices, restroom and electrical sections.
Bag houses, air handling units, cabinets and countertops, dust hoods, drying ovens, fume
hoods and scrubbers will be part of the equipment.
The laboratory will provide the assaying requirements for the mine and process plant and
provide metallurgical test work capability for approximately 45,000 samples per year.
18.4.8 Concentrator Maintenance Shop and Warehouse

A maintenance workshop will be located in the concentrator area. It will be subdivided into
the following main sections: welding shop, mechanical shop, machine shop, electrical
workshop, instrument shop / tool room and warehouse. It will have numerous offices for
personnel, lunch room and rest/change rooms.
Welding Shop:
area of about 390 m2
The welding shop will be equipped with portable welding machines, work benches
and means for storing gas cylinders.
Also provided will be a welding fumes extraction system.
Mechanical Shop:
The mechanical shop will be furnished with several work benches and required
equipment for normal maintenance activities.
Machine Shop:
Machine tools for the machine shop will include a lathe, drill presses and a hydraulic
press.
Electrical Workshop:
area of about 80 m2
Normal electrical testing equipment and work benches will be provided
Warehouse:
area of about 2,400 m2
A fenced area for additional storage will be located outside adjacent to the
warehouse.

January, 2012
Caspiche Project
Copiapó, Chile
The workshop areas will be served by a 10 t overhead traveling crane.

Utilities provided include electric power, portable water, compressed air and a sewage
system.
18.4.9 Administration Building

The administration building will be a single storey building. The building will have offices for
plant senior management and administrative and technical staff.
There will be offices for secretarial and accounting personnel. In addition, the building will
have a reception area, a training room, a dining room with kitchen, a large conference hall,
smaller meeting rooms, a library, male and female rest rooms and the typical office supply
and equipment rooms.
The building will have a central air conditioning system and be equipped with swing
windows. Utilities provided include electric power, potable water and a sewage system. Main
telephone switchboard and network servers for the operation will be located in the
administration building.
A parking lot for approximately 25 cars and a bus loading area will be located adjacent to the
building. Additional parking will be provided with walking distance.
18.4.10 Truck Workshop

The mine truck workshop will be located north of the open pit. It will contain ten bays, each
with two truck service stations, so that up to eighteen trucks can be serviced at any one
time. Each bay will be 21 m wide, 21 m long and 21 m high. The bays will have vertically
lifting doors at both ends. Exhaust fume extraction fans will be provided for each service
station. Ventilators for space ventilation will be located on the roof of the building.
Overhead traveling cranes will be provided for maintenance purposes.
The truck workshop building will contain lay-down areas and storage rooms furnished with
racks and containers for storage of spare parts. Offices for operating personnel, first aid
room, lunch room as well as toilet, shower and change facilities will be located in a separate
wing of the building.
A compressor supplying compressed air, complete with air receiver/storage vessels, will be
housed in its own enclosure outside the truck workshop.
Located outside in a dedicated fenced enclosure will be facilities for:
Tire shops for tire storage and repair and a tire mounting machine.
Welding shops
Washing stations
The truck workshop building, outside storage facilities and work areas, parking and open
space otherwise available for truck servicing will cover an area of approximately 240 m x
340 m.

January, 2012
Caspiche Project
Copiapó, Chile
18.4.11 Bulk Fuel Storage

Diesel and gasoline fuelling stations will be located near the respective fuel storage tanks in
the vicinity of the mine truck workshop. Mine haul trucks will be refuelled with diesel fuel in
the mine by a refuelling truck.
The fuel storage tanks will be above ground and have berms to contain any spillage of fuel.
Both diesel and gasoline fuel will be delivered to the process area by trucks and then
pumped to the storage tanks.
18.4.12 Communications
18.4.12.1 Off-site Communications
Basic telephone service will be initially supplied via satellite communication. Cell phone
communication for both voice and data will be developed to service the needs of the project
during construction and operations. Telephone communication will include but not be limited
to:
Site administration to Owner’s office in Santiago, Roaster facility office and Port office
Roaster Facility to a Owner’s office in Santiago, Site administration office and Port office
Port office to Owner’s office in Santiago, Roaster facility office and Site administration
office
Internet will be accessible with connectivity to the intranet for the home office during
construction and operation.
An emergency phone connected to the UPS in the control room will be provided on the
satellite service.
18.4.12.2 On-site Communication
Permitting and licensing will be required by Caspiche Plant for two (2) wireless systems
using portable radios.
One dedicated to the mining operation with base tower located at the concentrator
administration building.
The second systems will be dedicated to concentrator, roaster facility and port facility
with the base station located in each facility main control rooms.
The Operations Manager will have access to both systems at mining and concentrator
The Concentrator/Roaster/Port facility managers will have access to their own systems.
All facilities will have internal telephone systems connected to all buildings on sites.
Closed circuit television is to be installed at key areas for security monitoring and
surveillance, such as approach to the security gatehouse, intersections of mine haul roads,
entrances to mine administration building and conveyor gantries and electrowinning and
gold room facilities. At least a 30-h record time will be saved in memory on safe storage
media.

January, 2012
Caspiche Project
Copiapó, Chile
19.0 Marketing Studies and Contracts

19.1 Introduction & Scope
Selmar International Services Ltda (Selmar) was commissioned by Sociedad Contractual
Minera Eton Chile (“Eton”), Exeter Resource Corporation´s (“Exeter”) Chilean registered
operating company, to provide key marketing assumptions for the Prefeasibility Study of the
Caspiche Project in the Maricunga Belt, 3rd Region, Chile (“Project”). In undertaking this
commission Selmar worked with its Vancouver, Canada associate - Neil S. Seldon &
Associates Ltd (“NSA”). Selmar is a Chilean based company and part of Metallicarum
International (MIL). MIL provide consulting advisory services and research focusing on the
commercial aspects relative to mining and base and precious metal marketing,
transportation and distribution, feasibility market studies, marketing audits, strategies, policy
and price risk management. MIL commercial expertise is allied to a number of internationally
recognized research groups in copper, lead, zinc and precious metals.
In preparing this report, Selmar has used the services of Alfonso Gonzalez, a copper market
analyst, as a sub-consultant. Alfonso Gonzalez is based in Chile and provides consulting
services with respect to market statistics for the copper industry on a subscription basis to
private clients. Where applicable in this report certain tables and charts are attributed to
Alfonso Gonzalez.
For this marketing assessment for the Caspiche project, assumptions are based on
metallurgical data and reports provided by Exeter to Selmar with respect to the copper
concentrate, sulphuric acid, doré metal and copper sulphide characteristics. Selmar’s
commentary and outlook on concentrate marketability and related smelter charges, including
treatment, refining, penalty details, payment timing, metal accountability, and other contract
terms, are based on Selmar’s market knowledge and use of data available in the public
domain. Selmar has not contacted any smelters specifically to discuss the marketability of
the Caspiche calcine concentrates. As the project progresses through the next phase of the
feasibility study, it is recommended that contact be made with smelters to discuss the
acceptability of the proposed calcine from the Caspiche project and associated treatment
and refining charges.
A high-level evaluation of the marketability of sulphuric acid by-product from the proposed
roasting facility was completed with the assistance of a specialist sub-consultant retained by
Selmar.
Selmar’s report is divided into various sections, in respect of which a summary of its main
points is provided hereunder.
The Qualified Person responsible for the review of this item has confirmed that the analyses
and results in the Selmar report support the assumptions of this Report.
19.2 Refined Copper Market

In forecasting refined copper supply demand market, one must recognize the risks of long-
term projections, given the fact that projects have not been committed or are in the possible
or probable stage or at an early stage of construction.

January, 2012
Caspiche Project
Copiapó, Chile
Recent studies by banking and other research groups indicate that there are not enough
projects in the pipeline to balance the copper market going forward assuming the projected
demand growth.
In recent years, the timeline for mine development has become extended in the face of the
need for more exhaustive environmental and social economic issues and for any major
project a lead development time of 8 to 10 years is not unusual. In consequence, the
estimate for the development of the expected projects at various stages in the pipeline has a
reasonable degree of certainty and there is limited potential for supply surprises on the
upside. On the other hand, the trend over the past decade has been the opposite with
project delays being seen for a variety of reasons. At the beginning of the current decade,
the expectation was that new mine development would add substantial supplies, but in
practice this did not happen. Reasons included more focus on environmental and social
economic issues, rising capital and operating costs, which pushed up the required copper
price, as well as the world financial crisis in 2008-2009 which all contributed to the shortfall.
Secondary copper (scrap and recycling) demand is increasing; in China for example, where
domestic consumption of products using copper has resulted in these products being
replaced with alternative materials.
The following chart sourced from the Bank of America Merrill Lynch Commodity Research
publication of 06 July 2011 serves to illustrate these points.

January, 2012
Caspiche Project
Copiapó, Chile
Figure 19.1: The Shortfall in Refined Copper Could Reach 6 Million Tonnes by 2020
In the longer run, strong copper demand growth prospects are based on the expected
resource intensive of use in economies such as China, India and other developing countries.
Demand is associated with investment in power distribution networks and other
infrastructure development as countries industrialize and urbanize.
The implications are nothing short of profound. Projections for iron ore, aluminium and
copper suggest that demand could double or even triple over the next 25 years.
A recent study by the Development Research Center under China’s State Council concluded
that China’s industrialization stage will last into the 2020’s with potential GDP growth
estimated to be in the 8 to 10 per cent range.
China today consumes about 40 % of the world’s refined copper, and it is expected to
continue to grow and may rise to 52 % by 2022.

January, 2012
Caspiche Project
Copiapó, Chile
Figure 19.2: China is now the Dominant Metal Market Participant
19.3 Copper - the Longer Term Price

Reflecting the tight market situation, copper prices are currently in the range of $ 9,000 to
10,000 a tonne – about four times higher than the average level through the 1990’s and well
above levels seen in recent years.
Prices could remain near current levels as long as production growth continues to under-
perform against the underlying demand trend creating a need to ration supplies.
It does not make sense to forecast a single constant dollar price from today going forward.
Given the uncertainty in the market place, Selmar suggests that Table 19.2 illustrates
reasonable ranges to be expected for prices in dollars of the day until 2014 and then in
constant 2011 dollars as prices move down from today's levels toward more sustainable
long-term levels.
There is every indication that inflation will again become a factor.

January, 2012
Caspiche Project
Copiapó, Chile
Table 19.1: Outlook for the Copper Price

Year $ of the day $ of the day $ of the day $ of the day $ of the day Constant
2011 2012 2013 2014 2015 Long-term
9,000 / 9,000 / 8,000 / 7,000 / 6,000 / 5,500 /
US$/tonne 9,750 11,000 10,000 9,000 8,000 6,500
US$/lb 4.08 / 4.42 4.08 / 4.99 3.08 / 4.54 3.17 / 4.08 2.72 / 3.08 2.50 / 2.95
19.4 Copper Concentrate Market Outlook

Global copper concentrate production in 2010 was 12.8 million tonnes of contained copper
or about four fifths of total newly-mined copper production of 16.2 million tonnes.
The balance of 20 % newly-mined copper comes from SX-EW electrowon copper cathode
and other copper-bearing by-products.
Concentrate supplies are expected to increase particularly between 2013 - 2018 as a result
of new projects now in the advanced feasibility and development stage and announced
expansions of operational mines. Among the largest projects underway or being considered
are:
PPC’s Caserones project in Chile
Rio Tinto’s Oyu Tolgoi project in Mongolia
Codelco’s Ministro Hales project in Chile
Codelco’s Radomiro Tomic sulphide project in Chile
Goldcorp’s El Morro project in Chile
Barrick’s Cerro Casale project in Chile
Barrick’s Zaldivar sulphide project in Chile
Teck’s Quebrada Blanca sulphide in Chile
Quadra Mining’s Sierra Gorda project in Chile
Anglo’s Quellaveco project in Peru
Xstrata’s Antapaccay in Peru
Xstrata’s Las Bambas project in Peru
Chinalco’s Toromocho project in Peru
Minmetals Galeno project in Peru
Anglo’s Michiquillay project in Peru
Vale’s Salobo project in Brazil
Xstrata’s Frieda River in PNG
Xstrata’s Tampakan in the Philippines
MCC’s (China) Aynak project in Afghanistan
Kazakhmys’ Boschekul project in Kazakhstan

January, 2012
Caspiche Project
Copiapó, Chile
Xstrata’s (Yamana) Agua Rica project in Argentina

Anglo/Northern Dynasty’s Pebble project in Alaska, USA
Augusta’s Rosemont Ranch project in the USA
Teck/Novagold’s Galore Creek in Canada
Zambia concentrates projects
DRC concentrates projects
The largest increases in production from expansion projects over the next decade are
expected to be from the following producers:
Anglo American’s Los Bronces mine in Chile
Xstrata/Anglo’s Collahuasi mine in Chile
BHP Billiton Escondida mine in Chile
Freeport’s Grasberg operation in Indonesia
Buena Vista (ex-Cananea) in Mexico
Olympic Dam in Australia
Codelco’s Andina mine in Chile.
Over the next ten years further increases in mine production and developments are
expected in higher risk countries such as Pakistan, Kazakhstan, Afghanistan and the DRC.
The copper concentrate market has seen recent significant structural imbalances between
mine production and smelting capacities, and by the middle of the decade if all new project
and expansion plans are met there will be a surplus of concentrates. This in theory could
last for several years, increasing smelter Treatment and Refining charges (TC/RC’s). Such
increasing charges will also be the result of increased costs on the smelter side and it is
evident that in China there is a move towards achieving more economic terms for the
smelter. However, several times in recent years, China has attempted to "force" the smelting
industry to work together to achieve this, but such attempts have not always lasted.
Imbalances between concentrate supply and demand are not unusual and are heavily
influenced by different lead times to construct. For instance mines outside China and
smelters in China, where the latter can be brought on line in three to four years whilst longer
mine development lead time has been noted previously.
Custom smelter capacity is expected to grow significantly in the latter part of the decade to
meet increased refined copper demand, particularly in China and India. More than fifty
percent of global custom smelting capacity is expected will be located in China in 10 years
time.
Domestic demand for copper in China and India as well as elsewhere in Asia is pointing
towards new smelting capacity largely being built in these areas. The effect will be that
smelter development is market driven to meet such domestic demand.

January, 2012
Caspiche Project
Copiapó, Chile
19.5 Treatment and Refining Charges (TC/RC’s)

In Selmar’s view there should be no difference in smelter TC/RC terms applicable to calcine
concentrates compared to standard copper sulphide concentrates. The main difference will
be reflected in the penalty structure and the payment terms assuming it would take the
smelters more time to consume / blend the calcine due to its physical and chemical
characteristics.
Over the last two decades the penalty revenues associated with the treatment of arsenic did
not justify the risk associated with developing such treatment or provide the incentive to
invest in new technology. However, there are other aspects, including increased regulation
not only on the smelter side, but also in the movement of residues and other by-products
which are forcing the development of treatment technology. In addition, more attention has
to be given to the requirements of various authorities and indigenous peoples to ensure their
support.
From the perspective of smelter costs and revenues, the trend is now changing and more
recently arsenic penalties have increased to US$3.00 per each 0.1 % As, while
simultaneously the threshold for the application of penalties has been lowered from the
"traditional" 0.2 %. Application of penalties is now being seen at lower thresholds depending
on the market. A new tier of significantly higher penalties for concentrates with arsenic levels
above 0.5 % may be introduced, reflecting the gradual change necessary to justify operating
costs and investment in arsenic reduction.
Table 19.2 illustrates long-term smelter charges, to be used as assumptions for PFS
evaluation of Caspiche concentrates.

January, 2012
Caspiche Project
Copiapó, Chile
Table 19.2: Concentrates - Commercial Terms Assumptions

Payable Metals Recommendation
Copper payable (%) ( min. ded. 1unit) 96.5
Gold payable (%) 97.5
Silver payable (%) > 30 g/t 90.0
Commercial terms Recommendation

Concentrate TC ( US$/dmt ) 85.0
Copper RC ( US$/lb payable ) 0.085
Copper PP (%) 0%
Gold RC ( US$/oz payable ) 6.0
Silver RC ( US$/oz payable ) 0.50
Arsenic penalty 0.1- 0.5% / 0.1% As 3,0
Arsenic penalty > 0.5% / 0.1% As 10,0
Antimony penalty 0.1- 0.3% / 0.1% Sb 4.0
Ocean Freight ( US$/dmt ) 76.0
Notes It is often the case that where a percentage payment for payable metals is applied it is often subject to
a minimum deduction. In the case of copper a 96.5 % payment is applied, for concentrates grading below
28.57 % Cu a further 1 % of concentrate grade is deducted.
It should be noted that delivery of concentrates is on the basis of CIF-FO (Cost, Insurance
and Freight, Free Out) smelter ports. Therefore the mine must bear the cost of delivering the
concentrates to the receiving smelter’s port, and the buyer is responsible for unloading the
cargo and the cost thereof.
19.6 Marketability of Caspiche Sulphide Concentrates

Exeter reported in March 2011 positive results from Caspiche Project Sulphide test work.
Indicating “the pilot plant recovered 75 kilograms of concentrate from approximately 10
metric tons of diamond drill core representative of Caspiche sulphide mineralization. The
resulting concentrates assayed on average 23.5 % copper, 35 g/t gold, 75 g/t silver and 2.4
% arsenic”.
In Selmar’s opinion the arsenic content in these concentrates at 2.4 % is at a level where
very few smelters, if any, would be prepared to accept any substantial quantity.
Test work has confirmed the successful application of both reduction roasting and pressure
oxidation technologies to reduce or eliminate arsenic from the sulphide concentrates
produced by flotation.
Reduction roasting was recently selected for Codelco’s new Ministro Hales copper mine in
northern Chile. This mine is expected to come on stream late 2013 / early 2014. Selmar
understands that Ministro Hales flotation concentrate prior to roasting would have an arsenic
level similar or higher than that reported by Exeter for the Caspiche project.
Two suppliers of roaster technology, Outotec and Technip completed successful test work
on the concentrates, reducing the arsenic content to less than 0.2 %, while retaining sulphur
content of 25 %. Roasting did not result in copper or gold losses. The resulting roaster
calcine met a specification that would be acceptable to 3rd party smelters.
Exeter has provided certain analysis detail for both the unroasted copper concentrates and
for the calcined concentrates after partial roasting as shown in Table 19.3.

January, 2012
Caspiche Project
Copiapó, Chile
Table 19.3: Elemental Analysis of Calcine Test Products

Test Temp. Cu Fe S Zn As Sb SiO2 Al2O3
(°C) (%) (%) (%) (%) (%) (%) (%) (%)
113/10* 23.6 25.9 32.8 0.75 2.40 0.53 9.2 1.8
1 600 22.8 31.4 27.9 0.63 0.19 0.25 12.7 2.4
2 650 24.1 31.1 27.3 0.73 0.14 0.18 12.0 2.2
3 700 24.9 30.9 27.2 0.75 0.16 0.13 11.8 2.2
4 725 26.0 30.8 25.5 0.81 0.19 0.16 11.4 2.2
5 600 23.5 30.9 27.6 0.68 0.33 0.24 12.2 2.4
6 650 24.1 31.3 25.5 0.69 0.11 0.16 12.7 2.3
7 700 25.0 31.0 25.6 0.74 0.18 0.15 11.7 2.2
8 725 25.4 31.0 24.1 0.75 0.26 0.16 11.5 2.5
A residual sulphur level in the calcine of approximately 25 % should not be an issue for
smelters, but this will depend on the individual smelter plant blend mix.
The key challenge when addressing the marketability of Caspiche sulphide concentrates is
the availability of a sustainable long-term market for calcined concentrates, given that
product quality issues, especially arsenic and antimony impurities, are a major concern for
custom smelters world-wide in the current and medium term scenarios. This is an industry
issue. The Caspiche project timing toward the end of the decade or early in the next has
some advantage in that current projects at various stages of feasibility studies in the pipeline
are also considering roaster technology or hydro-metallurgical treatment of arsenic-rich
concentrates.
There is substantial ongoing research into hydro-metallurgical treatment of arsenic-rich
concentrates, which could well become feasible in the timeframe of Caspiche Project
development alleviating the increasing constraints of custom smelters.
In simple terms the ability of smelters to process arsenic bearing concentrates has
decreased over the last several years due to a variety of factors including environmental and
legislative controls as well as technical factors. It is therefore not just a question of saying
that arsenic will be penalized over a certain level and looking at it purely as a cost, but in
reality the question is whether or not higher arsenic bearing material can be placed under
long term offtake agreements.
Significant additional tonnages of arsenic bearing concentrates from existing arsenic-rich
mine expansions and new projects are expected to enter the market in the next 5 to 8 years.
The largest increase of arsenic in concentrates is expected between 2011 and 2017 and is
to come from new arsenic-rich projects and announced expansions of operational mines
including Los Bronces, Mina Ministro Alejandro Hales, Collahuasi, Escondida, Los
Pelambres, Grasberg, Batu Hijau, Oyu Tolgoi and Chelopech. Reportedly this could
increase the global average arsenic content in copper concentrates from 0.16 % in 2010 to
around 0.22 % on average by 2020, a 37 % increase, exacerbating custom smelters
constraints and hence the need to adapt to this reality.
After partial roasting, the residual arsenic contained in Caspiche calcine concentrates, is
likely to be at a level below 0.2 %. Generally, smelters target a feed blend at sub 0.1 % As
but based on the overall feed, some smelters have the ability to take concentrates with As
values higher than 0.2 % As, providing it can be blended down.

January, 2012
Caspiche Project
Copiapó, Chile
From a physical perspective, there may be some concern in the minds of offtake smelters in
that a calcine at 0 % moisture would be inherently dusty and thus pose materials handling
issues from both an environmental and plant hygiene perspective. Exeter has advised that
the intent is to add water at the point of origin and it is expected that it will behave like
normal concentrates and there would be a no need to pelletize. It should be noted that
pelletized concentrates are not widely accepted by smelters and could pose feed issues to
the reactors.
Without any discussion with smelters to ascertain the quantity that can be taken and the cost
thereof, in Selmar’s opinion based on the calcine quality supplied by Exeter at about 26 %
copper, 40 g/t gold, 90 g/t silver, 25 % sulphur, arsenic levels of less than 0.2 % and
antimony levels of 0.25 %, it should be feasible to find a sustainable long-term market for
such concentrates. Nevertheless, securing long term smelter contracts for arsenic bearing
concentrates is a challenge.
Based on Selmar’s involvement in the market the likelihood is that a greater number of sales
contracts will be required for Caspiche calcine than would be the case for sulphide copper
concentrates. While some smelters with precious metals refinery circuits might favour high
gold and silver bearing concentrates, this is not true for all, particularly for most Chinese
smelters at present.
Selmar recommends that once the PFS is complete, detailed project presentations should
be made to smelters to ascertain and quantify potential interest.
19.7 Logistics Load Port Options

Four port options located in Atacama Region III were identified with potential capabilities for
loading Caspiche calcine concentrate shipments in bulk.
For purposes of planning and assuming there is likely to be more than one discharge port, a
freight rate of US$ 70 per wmt +/- 15 % in constant 2011 dollars is suggested for 10,000
tonne parcels of calcine concentrates.
19.8 Sulphuric Acid Market

The partial roasting facility would generate approximately 105,000 tonnes per year of by-
product sulphuric acid. Potential start-up is 2018-2020 with a life of mine of 15 years. Given
the continued structural deficit of sulphuric acid in Chile and the base and probable future
scenarios for Chile and Peru, it should not be a major problem to find a market for Caspiche
annual acid production, provided such acid quality is standard for copper leaching processes
and without deleterious impurities.
Furthermore, the regional balance in the vicinity of Caspiche Project suggests that the
region as a whole has a structural deficit of around half a million tonnes of acid per year.
Further project developments may increase this deficit.
For purposes of planning and assuming there is a local market for acid production, a price in
a range US$ 100 to US$ 150 in constant dollars per tonne basis delivered Mejillones Port is
suggested.

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Caspiche Project
Copiapó, Chile
19.9 Doré Metal

This market is very competitive and in many cases payable metals approaches 100 % and
there is not a great deal of variance in terms between refineries. This situation is expected to
continue in the foreseeable future.
The long term gold price assumptions seen in the market recently for major projects are in
the US$ 900 to US$1,200 per ounce range.
19.10 Copper Sulphide

Given that Cu2S precipitate is basically a chalcocite it should be relatively straightforward to
smelt as compared to chalcopyrite concentrates.
Due to its high grade / value per tonne, Selmar does not recommend mixing it with the
calcine concentrate as the copper value might be lost in sampling.
Considering the small volume of approximately 500 tonnes per year and expected copper
content and from the SART plant, in Selmar’s opinion finding a smelter to buy the Caspiche
Cu2S precipitate should not be a concern.
Marketing the production in big bags directly to a local smelter such as Enami should be
pursued in first instance, but if this is not possible, then the alternative route would be to
arrange containerized shipments to an overseas smelter.

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Caspiche Project
Copiapó, Chile
20.0 Environmental Considerations

Exeter has completed a number of environmental campaigns to generate a suitable
Environmental Baseline Study (EBS) to support a future project Environmental Impact Study
(EIS) for the Caspiche Project. The main contractor used for the compilation of this EBS was
IAL Ltda. (IAL) of Santiago, Chile. In July 2011, Exeter´s locally registered entity, SCM Eton
contracted Arcadis Chile (Environmental Division) to carry out a GAP analysis of the
developed Caspiche EBS. The objective of this analysis was firstly to confirm all legally
required elements had been included and secondly to expand the EBS to include the
potential footprints of the project options. Arcadis Chile has extensive national and
international experience in development and management Base Line Studies (BLS) and
environmental impact studies (EIS) for mining projects, with special expertise in the Region
of Atacama where the Caspiche project is situated.
In the context of the Prefeasibility study specific environmental studies have been identified
which are required for each of the options in evaluation. Table 20.1 summarizes the list of
studies which must be completed to complement the existing baseline as part of the
Environmental Impact Assessment (EIA) before the document can be submitted for review
and approval by the appropriate Chilean authorities.

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Caspiche Project
Copiapó, Chile
Table 20.1: Required Environmental Studies

Component Activity Proposal
Hydrology Continue monitoring of surface water, extending to the areas that have not
been sampled, replacing points that have been dry during previous
sampling periods, and adding, for the same purpose additional sampling
points.
Hydrogeology Develop further groundwater sampling, ideally in areas where potential
recipients are located (eg. Collas summer encampments). The proposed
sampling includes 5 points along the Aguas Blancas River valley.
Detailed Hydrogeology is required for dewatering programmes. (pit areas)
Geology In order to define potential future Acid Rock drainage (ARD), analysis of
the waste rock by ABA and humidity cell techniques is recommended. This
test programme is currently underway and will be completed Q1 2012.
Air Quality To sample air quality, specifically PM10. Monitoring is recommended at

least three points (eg.: camp and receivers along the access road)
Archaeology Once location of project facilities has been defined an intensive

archaeological baseline of the area to be affected must be completed.
Anthropology Once location of project facilities has been defined, an analysis of
Convention No. 169 of the ILO (Sept. 2009) must be undertaken, which
aims to present the project to the indigenous communities.
Biological Once location of project facilities has been defined an intensive flora and
Issues. fauna baseline of the area to be affected must be completed. This will be
(Flora, Fauna completed in parallel with the water sample monitoring program. Two
and limnology campaigns are required during the next season.
Limnology)
Use of the Once location of project facilities has been defined an intensive soil
Soil. characterization and use of soil programme for the areas to be affected
must be implemented.
Development To present the EIA to the environmental assessment authorities, a
of EIA document, completing a total of 9 chapters (within which is found the
Environmental Baseline) must be prepared. Once the project facilities have
been defined, the environmental studies required to complete the
Environmental Baseline must be developed.
The EBS was designed to meet relevant local and international legislation, and contains:
Principal Environmental findings
Environmental and social issues of the project
Socio-economic potential impacts and closure, and
Abandonment stage.
The studies were completed over a continuous 12 month period between mid-2009 and mid-
2010. A seasonal water monitoring campaign of the area continues as part of the ongoing
surface water quality programme.

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Copiapó, Chile
A series of methodological steps were completed to fulfill the objectives and achieve the
correct characterization of the environmental elements. This methodology complied with the
relevant legal and environmental regulations currently in place in Chile.
20.1 Principal Environmental Baseline Findings

20.1.1 Physical Environment: Climatic Characterization
The mountain range of the Atacama Region, from a bioclimatic point of view is in a transition
area ranging between two regimes; the first with rainfall during summer months (rainy
plateau) and the second with winter rainfall and summer droughts. The general trend in the
area is a desert influence with snow precipitation, and high evaporation.
Caspiche local conditions from the weather station installed at the camp, show an average
temperature of 6.43 °C, with minimum average in July of -6.24 °C, and maximum average in
March of 17.08 °C. Wind gusts average 3.85 m/s in a north-west direction, predominantly
from the north. Maximum wind intensities were recorded in September/October, and
minimum in the months of April, May, June and July.
Maximum annual rainfall recorded in this sector was 23.2 mm (registered in 2009).
Approximately 50 % of rainfall is concentrated between May, June and July; the remaining
50 % in the months of January and February.
20.1.2 Physical Environment: Main Geomorphological Units

The basin is located between the southern sections of the foothills of Domeyko formation
associated with Nevado Jotabeche with an elevation of 5,802 m.a.s.l., and the confluence of
the Aguas Blancas River with Quebrada Seca, a distance of approximately 25 kilometres
downstream of the Nevado Jotabeche and at an approximate elevation of 3,100 m.a.s.l. The
Quebrada Aguas Blancas basin has a number of landforms associated with glacial and
fluvial processes.
20.1.3 Physical Environment Soil, characterizations and applications

There are clear limitations on conditions of soil formation processes in the area. One of the
key factors corresponds to the climate variable, which severely limits the accumulation of
organic matter generated by the soil, so most of the forming processes have a geological
formation, either by weathering or gelifraction.
Nonetheless, there are low and flat areas, where vegetation formations have been
generated (meadows and wetlands), with azonal features that have allowed the
development of some soils with organic characteristics.
Soil use at the regional level is characterized by low agricultural capacity, except for the
cultivated valleys of the region. In terms of land use, the greatest potential of the region
today corresponds to mining.
20.1.4 Physical Environment: Hydrology

The Project is located in the Aguas Blancas River System, which is a tributary of the
Figueroa River at an altitude of 3,000 m.a.s.l. This sub-basin has a runoff orientation of SE –
NW and drains an area of approximately 20,402 ha. The area affected directly by the project

January, 2012
Caspiche Project
Copiapó, Chile
is located at the head of this sub-basin, specifically in a first order system called “Quebrada
Yeguas Heladas.” Exeter has developed hydrochemical characterization and analysis of
water quality in the project area on a seasonal basis from mid 2009, completing a total of 7
campaigns.
As it descends through the sub-basin, water quality progressively deteriorates. High values
of sulphates, total iron, total copper and pH were recorded in the middle and lower sections
of the basin. These parameters substantially exceed the permitted limits for environmental
standards, especially those parameters such as sulphates and total iron, characteristic of
sites where projects and mining processes could be located.
The majority of the water sampled has high turbidity values; a great deal of purification and
other processes are required to meet the relevant standards for drinking water.
Analysis of pH identified two grades of waters. The first corresponds to those categories
ranging from "4" to "6" (according to Nisbet and Verneaux 1970), the qualities of these
varies from neutral to alkaline neutral. The second group exhibits the most extreme
behaviour, either with a sharp acidity or alkalinity.
20.1.5 Biotic Environment: Flora and Vegetation

This area is inserted in a transition zone between the High Andean Steppe Region, Sub-
region Mediterranean Andes, High Andean Steppe Formation of Doña Ana Mountain Range
and the Desert Region, Sub-region Andean Desert, Formation of desert steppe of El
Salvador (Gajardo, 1983 and 1994).
The highest proportion of vegetation within the study area corresponds to a tall thorny shrub
(height steppe) of Adesmia hystrix (rod) with a vertical structure and density (coverage) that
varies according to different physiographic positions; and an herbaceous perennial stratum
of Stipa atacamensis (Grassland) and / or Cristaria andicola (Malvilla).
The study recorded 83 species of local flora, all of which are native. None of the species
identified have known conservation problems. The sectors of water azonal vegetation
(meadows and wetlands) must be considered because these ecosystems are relevant for
local sustainability, wherein the biological diversity is quite restricted.
20.1.6 Biotic Environment: Fauna

In parallel with the Andean desert conditions, and low and sparse vegetation, the fauna
present in the studied area is scarce. The current inventory of invertebrates and / or
potentially present invertebrates in the area comprised a total of 51 species, 50 native and
one introduced. The native species include two endemic species. Of these, there are two
species of reptile, 40 birds (25 passerines and 15 non-passerines) and nine species of
mammals (three carnivores, one artiodactyl, five rodents and lagomorphs), 35 species were
observed directly in the field during the four campaigns.
Birds are the most diverse group with 40 species, followed by mammals with nine taxa.
Despite the existence of bodies of water, amphibians were not observed, they are recorded
in lower areas of the basin and not in the high mountains. Almost all species are distributed
in various regions of the country and there are only two species of reptiles endemic to the
Atacama Region, Liolaemus juanortizi, and Liolaemus rosenmanni.

January, 2012
Caspiche Project
Copiapó, Chile
National regulations define two complementary means of defining protected species; the
Regulations for Classification of Wildlife Species and the Hunting Law. None of the
invertebrates recorded are cited by the Regulations for Classification of Wildlife; however
according to the Hunting Law (SAG, 2008) the conservation status of species observed is as
follows:
Reptiles: Liolaemus rosenmanni (Vulnerable) y Liolaemus juanortizi (Critically
Endangered);
Birds: Tinamotis pentlandii (Endangered), Chloephaga melanoptera (Endangered), Vultur
gryphus (Endangered), Attagis gayi (Vulnerable);
Mammals: Puma concolor (Critically Endangered, SAG 2008; Near Threatened, DS
151/2006 MINSEGPRES), Pseudalopex culpaeus y Pseudalopex griseus (Near
Threatened), Lama guanicoe (Critically Endangered) y Lagidium viscacia (Critically
Endangered).
Colonies of Ctenomys sp. are distributed over a wide area within the project area, including
the sectors of exploration, access road, meadows, and Quebrada Yeguas Heladas, and are
always associated with a low scrub thorn bushes (Adesmia echinus) and tussocky grass
(Stipa atacamensis).
The project area is not mentioned in either the Red Book of Priority Sites for Conservation of
Biodiversity in Chile, or among those highlighted by the National Biodiversity Strategy.
20.1.7 Description of Socioeconomics-Cultural Environment:

Demography
The regional population concentration is largely urban, 83.9 % of the population in the area
live in cities or towns with Copiapó and Vallenar holding the largest demographic weight.
Due to the specialization in activities related to mining and agriculture, the population is
predominantly male, with a sex ratio higher than the national average 103.16 for the region,
compared to 97.12 for the country; this situation is exacerbated in rural areas.
The district of Las Juntas, where the project is located has a population density of only 0.091
inhabitants per square kilometre which demonstrates how sparsely inhabited is the project
area. Despite the small size of the population, its presence is important, as it is associated
with the indigenous Colla communities who are dedicated to pastoral activities mainly
through migration cycles.
In terms of productive activities, while at the regional level mining is the main contributor to
regional GDP activity with 39 %, in terms of labour demand it only accounts for 10 %, the
opposite to agriculture, which accounts for 19 % of jobs, for a contribution to regional GDP
of only 10 %.
20.1.8 Historical and Archaeological Heritage

Information sources indicated that the project area does not contain national monuments,
zones of historic or special interest, national parks or other historical or archaeological
heritage sites.

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Caspiche Project
Copiapó, Chile
20.1.9 Anthropology
Since the exploration activities of the Caspiche Project started, Exeter has developed a
relationship with the neighbouring Colla Community at Jorquera River (CCJR) and its
tributaries.
Guidelines have been established which define the project objectives, and the principles of
coexistence and respect for the heritage and Colla indigenous culture. Exeter and the
community have fixed goals to work together via formal documents and agreements.
Technical groups meet with the participation of the National Corporation of Indigenous
Development (CONADI) and representatives of CCJR to discuss issues such as the
environment and others.
20.2 Summary of Main environmental and Social Issues for the

Project
From the Environmental Baseline Studies completed to date, it is possible to conclude that
the points of sensitivity of the project site area correspond to the following:
The data obtained from geological components, water quality and climate and weather
indicate the possible generation of acidic water. This is mainly due to strong presence of
sulphur in the composition of rocks of volcanic origin, in the Basin of Aguas Blancas
River.
The results of the water analyses indicate a progressive deterioration of water quality as
the water flows downstream to the sub-basin, highlighting elevated values of sulphates,
total iron, total copper and pH. This is important as the project will be located in the upper
basin.
The existence of threatened fauna in the area of influence of the project.
Flora and vegetation, are relevant to the functioning of ecosystems, especially those
relating to water azonal vegetation (meadows and wetlands), the project execution plan
must take measures to reduce the risks to these communities.
In landscape and scenic resource, the most important point is the current proposed
Sendero de Chile route where the mine activities would have an impact on the area’s
current visual quality with a resource loss or significant alteration of the landscape and /
or touristic values. Mitigation or compensation measures in the future must be
considered.
The eventual overload on the infrastructure systems of major urban centres is the most
important issue with regard to equipment and infrastructure components.
Archaeological sites identified are unique evidence of past activities and correspond to
national monuments, it is necessary first to avoid development of any type of work that
can generate partial or total destruction of the sites and make all efforts to ensure their
preservation.
The anthropological issue must take into account the existence of two camps that are
used during the summer by some family groups of the Colla community. Although they

January, 2012
Caspiche Project
Copiapó, Chile
are not permanently inhabited structures it should be considered that these areas are
significant to the Colla lifestyle and their nomadic character. The same consideration
should be given to the meadows and slopes that can be found along the gully of the
Aguas Blancas River and are used throughout the year by the flocks and herds that
community members keep in the gully.
20.3 Socio-economic Potential Impacts

Socioeconomic impacts linked to the Project are expressed in the first instance by the
location of the area, which houses 15.2 % of the existing Colla people in the Atacama
Region (Census 2002). In the area of direct influence of the project, the Colla Community
located in the area of the Jorquera River and its tributaries are the main community
impacted by the project. This community has a native-like organization covered by law
19.253 and is a legitimate interlocutor, and is the main population affected by the project.
The Colla community is spread over a large area of the foothills and mountainous uplands,
and also has a presence in the urban areas of the region. The communities in the rural
areas have a low population density, but own an area of 10,000 ha granted adjacent to
seasonal water courses. Due to their nomadic culture, employment in the area changes with
the season, from lowlands to highlands, in a cycle determined by the presence and absence
of snow, and the growth of the vegetation.
Livestock farming is the main economic activity of the community, together with ancillary
activities to support the local consumer base. This is reflected in each household that
produces similar products for different purposes, in some cases there is a market for the
product, while in the majority of cases the product is intended for family consumption. (TEPU
2001).
In the Colla Community of Jorquera River and its tributaries there is no rural school,
resulting in migration to urban areas. Health infrastructure is represented by a primary care
clinic providing a monthly round of medical and dental care.
Possible local impacts expected from the analysis of the foregoing against Article 8 of the
Regulation of Environmental Assessment System:
Impact on meadows and wetlands of the area, and associated fauna, essential for
economic and ancient-cultural development of the Colla people. This is due to the high
pressure which mining projects such as Caspiche and others in the area would subject
the territory to as they are developed and operated.
Increase in atmospheric emissions of suspended material produced by the activities of
the mining process and vehicular traffic. This may eventually affect people in the
immediate area (primary standard of air quality) as well as flora and fauna (Huasco
secondary reference standard). This negative impact may be mitigated through the
implementation of measures to control emissions.
Increase of traffic flow which could result in the death or injury of animals or members of
the community. This can be mitigated by speed control and strict monitoring of internal
driving rules and national regulations in force.

January, 2012
Caspiche Project
Copiapó, Chile
Impact on the quality and quantity of water resources due to intensive use. Exeter
provides sustainable exploitation of this resource through a secure flow of water
approved by the competent authority. The water source to be used assures there is no
significant impact on the current users.
Impact on winter and summer grazing areas that feed the animals as a product of high
traffic of light and heavy vehicles, water use, and mining activity.
Impact on archaeological sites that could eventually be given the status of ancestral
occupation of the territory. These sites may be affected by mining activity. To ensure that
the archaeological history of the area will not be impacted by future mining infrastructure,
the company should rescue materials to be impacted (Law 17.288; Ministry of Education
(MINEDUC).
Impact on local economic activity. The loss of territory for the migration and grazing of
livestock and possible impact of meadows and wetlands used for summer pasture and
winter activities that serve for care and feeding of livestock will have a negative impact.
Development of the project will generate a significant positive impact on employment
levels and the local economy.
The conclusions reached are that all effects or impacts noted above and related to the
different sections of Article 8 of the RSEIA14, imply a significant change in the livelihood and
customs of the human groups inhabiting the territory.
20.4 Closure and Abandonment Stage

In Chile, there are clear and precise rules regarding the closure of mining facilities
(Regulation on Mine Safety No. 72. section 5), which indicate the activities required to carry
out the closure of a mining project. The following is a summary of the objectives of the
Regulation, as well as the activities listed.
Ensure that the remaining facilities will not affect human health or degrade the
environment.
Ensure maintenance of physical stability and that the areas affected by mining activities
are in stable condition at the closure of the project.
Ensure the maintenance of stability associated with chemicals in the long term, in order to
reduce effects on biological diversity and to avoid endangering public health and safety.
Ensure environmental components, both surface and underground are not affected as a
result of the closure.
14 RSEIA Reglamento Sistema de Evaluación de Impacto Ambiental. Regulation of Systems of Environmental

Assessment

January, 2012
Caspiche Project
Copiapó, Chile
21.0 CAPITAL AND OPERATING COST

21.1 Capital Cost Estimate
21.1.1 Summary Capital Cost and estimate Basis
The following tables summarize the initial capital costs estimate for the project including the
mine area capital costs for each of the three options evaluated.
Table 21.1: Capital Cost Estimate Summary by Area – Super Pit

DESCRIPTION TOTAL
General 310,991,493
Mine Area 945,227,824
Sulphides Crushing 233,945,088
Heap leach Crushing 22,932,573
Leaching 65,118,024
ADR Plant 15,015,238
Concentrator Plant 3,636,744
Grinding 512,352,497
Flotation 165,399,724
Concentrate Handling 144,545,247
Tailings Handling 27,093,364
Scavenger Tails Treatment 7,833,207
Concentrate Treatment 4,598,127
Concentrate Roasting 217,742,816
Sulphides Reagents 5,058,482
Heap leach Reagents 863,824
Infrastructure 10,364,849
Power Supply 117,647,977
Water Supply 291,839,852
Indirect Cost 870,184,179
Contingency 827,366,227
TOTAL 4,799,757,365

January, 2012
Caspiche Project
Copiapó, Chile
Table 21.2: Capital Cost Estimate Summary by Area – Hybrid

DESCRIPTION TOTAL
General 167,207,809
Mine Facilities 784,709,025
Leaching 79,624,297
Heap leach Reagents 993,397
TOTAL 3,991,260,220

January, 2012
Caspiche Project
Copiapó, Chile
Table 21.3: Capital Cost Estimate Summary by Area – Full Underground

DESCRIPTION TOTAL
General 299,489,409
Mine Area 983,319,716
Leaching 106,222,008
Concentrator Plant 15,419,112
Heap leach Reagents 1,151,384
TOTAL 4,342,658,613
This estimate is based on information developed during the Prefeasibility study (PFS) of the
Caspiche Project.
The economic analysis completed in item 22.2 for each option indicated that the Super Pit is
the preferred route to be developed to Feasibility Study. Attention should be made to the
Super Pit option throughout this report.

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Copiapó, Chile
21.1.1.1 The Scope of Estimate

The estimate includes direct costs, provisions and contingencies.
The net cost includes process equipment; materials, construction equipment;
contractor labour including contractor direct and indirect costs; overhead and
Cost Scope
utilities.
The project indirect costs include the engineering, procurement, and construction
management (EPCM), phases Feasibility and Detail Engineering.
Estimating The Aker Solutions Estimating System (EST6) was used to calculate the capital
System costs.
21.1.1.2 Accuracy of the Estimate

The purpose of this estimate is to define the total cost of the project to verify its economic
viability. The estimate, per Aker Solutions estimating procedures, is a Type 1 “Magnitude”,
estimate with an accuracy of -15 % to + 20 % with a 90 % probability of occurrence. The
Type 1 estimate is equivalent to The Association for the Advancement of Cost Engineering
(AACE) Class 4 estimate.
The estimate costs are based on the following:
Critical Equipment List
Equipment budgetary quotations
Preliminary of physical material take-offs
Aker Solutions historical and current data
Cost information from construction contracts by Chilean contractors
21.1.1.3 Estimate Allowances

Table 21.4 indicates the percentages used for Growth Factor Allowances for each discipline.
The estimate includes growth factor allowances for the following:
Design Growth Factor: The design growth factor allowance accounts for increases in
quantity growth due to continuing design development and refinement
Construction Growth Factor: The construction growth factor allowance covers additional
quantities due to losses, damages, repairs, and modifications to material and equipment
made during construction.
The growth factor allowances for design and construction are derived from Aker Solutions
historical data and agreed upon by estimating, engineering and client input.
21.1.1.4 Miscellaneous Material Allowance

Miscellaneous material allowances are made for items needed to complete the project, but
likely not included in the material take-offs. Miscellaneous material allowances appear as a
line item in the direct material cost.

January, 2012
Caspiche Project
Copiapó, Chile
21.1.1.5 Specific Item Allowance

The specific item allowance covers items required to finish the project, but lack definition or
are in the preliminary stage of development.
21.1.1.6 Take-Offs and Pricing

Material take-offs (MTOs) were prepared by each responsible engineering discipline. The
responsible discipline estimator reviewed and confirmed quantities supplied on the MTOs.
Material take-offs by engineering are net quantities. Growth factor allowances were applied
to labour, equipment usage, process equipment, and material costs by estimators in
accordance with Table 21.4.

January, 2012
Caspiche Project
Copiapó, Chile
Table 21.4: Growth Factors – Cost Adjustments

COMMODITY UNIT DESIGN GROWTH % GROWTH FACTOR % TOTAL
ENGINEERING FACTOR CONSTRUCTION
NET QUANTITY OF DESIGN
FOLLOWING
ITEMS:
1a Site, Earthworks, m3 Platforms, Roads, Excavations not 15% Double handling and 5% 20%
and General Tunnels, and Dykes identified and Re-excavation due
Improvements miscellaneous to on-site
items modifications
1b Site, Earthworks, m3 Fresh water pipeline Excavations not 30% Double handling and 5% 35%
and General and concentrate identified and Re-excavation due
Improvements pipeline miscellaneous to on-site
items modifications
2 Concrete m3 Equipment and Miscellaneous 10% Pour losses, broken 5% 15%
Building concrete concrete, and
Foundations, Slabs repairs
on Grades, Elevated
Slabs, Walls and
Columns
3 Structural Steel T Light, Medium and Structural steel 10% Repairs and 5% 15%
Heavy Structural not identified. modifications
Steel
4 Buildings / m2 Building Finishes Items not 10% Installation losses 5% 15%
Architectural identified and damages
5a Process EA Conveyors, Pumps, Equipment 3% Field modifications 1% 4%
Equipment etc. quantity changes
5b Electrical EA MCCs, Switchgear, Equipment 10% Field modifications 2% 12%
Equipment Transformers, etc quantity changes
5c Chutes, Bins, EA Metal and plate work Capacity design 25% Field modifications 15% 40%
Launders, Tanks, associated with refinements
and Plate works process equipment
6a Electrical m Cable Trays, Routing changes 20% Field run changes, 9% 29%
Conduits, Cable, etc. and installation losses,
miscellaneous and damages
6b Electrical m High voltage Routing changes 10% Field run changes, 5% 15%
overhead line and installation losses,
miscellaneous and damages
7 Instrumentation m Instruments, Stands, Routing changes NA Field run changes, NA NA
Tubing, etc. installation losses,
and damages
8a Piping m Piping and Fittings Routing changes 10% Field run changes, 5% 15%
installation losses,
and damages
8b Valves EA All Valves Piping design 10% Field Run changes, 4% 14%
changes installation losses,
and damages
21.1.1.7 Process Equipment and Material Prices

Equipment and material prices used in this estimate was based on vendor budgetary quotes
or Aker Solutions database of recent equivalent projects.

January, 2012
Caspiche Project
Copiapó, Chile
21.1.1.8 Site, Earthwork, and General Improvements

The site earthwork, and general improvements take-offs were based on the preliminary civil
sketches. Material take-offs were prepared by Aker Solutions civil engineers industry
standard software (In Road) and spreadsheets. In general, the areas requiring mass
earthworks will be mass excavated and then back-filled with suitable fill. The estimate also
assumes that suitable fill material will be found on site and used for common and structural
backfill.
In the case of the stand alone heap leach pad design for the full underground option,
insufficient borrow material for pad construction will be produced in the open pit, as such the
estimate assumes that a suitable borrow pit is available and that the shortfall of
approximately 8 million tonnes of required material is sourced from this borrow pit. The
capital estimate includes the additional cost for the extraction and placing of this borrow pit
material.
Pricing
Unit prices are based on labour, material, and subcontract costs from construction contracts
of similar projects. If pricing information from construction contracts was not available, Aker
Solutions in-house cost database was used.
Concrete
Concrete quantities were determined from preliminary material take-offs prepared from
preliminary concrete works sketches by Aker Solutions civil engineers.
21.1.1.9 Steel
Take-Off
Structural steel take-offs were obtained from the preliminary structural steel drawings. The
take-offs were developed either with Aker Solutions corporate software or manual take-offs
by Aker Solutions structural engineers. The structural steel take-offs categorizes structural
steel by the following weight classifications: Extra Heavy, Heavy, Medium and Light. Steel
structures items such as grating, handrails, and stairs, etc. are identified separately.
It is assumed that all steel is sourced locally although there may be further benefits in
sourcing structural and other required steel and platework from China. This should be
evaluated in the next phase of project development.
Building / Architectural
Aker Solutions engineers prepared take-offs for roofing and sidings of site buildings. Doors,
gates, and finishing for the buildings are factored. All other miscellaneous buildings are
priced on a dollar per square metre basis using Aker Solutions historical data.
21.1.1.10 Process Equipment

The capital estimate includes deferred capital for process equipment which will be required
when the MacNeill material is placed on the heap leach pad. This includes crusher circuit
modifications and a SART plant for copper recovery and cyanide regeneration. Further
deferred capital is included for IPCC plant and equipment for the super pit and hybrid
options and purchase of gyratory crushers for the underground option.

January, 2012
Caspiche Project
Copiapó, Chile
Pricing
Aker Solutions has received budgetary quotations for approximately 40 % of the process
equipment for the Caspiche Project. Process equipment pricing is based on budgetary
quotations and includes the addition of engineering development and growth factor
allowances. Pricing for the remaining process equipment is from in-house databases.
Installation
Equipment installation costs are based on Aker Solutions’ in-house data for the region. The
process equipment erection data was obtained from recent or on-going projects of similar
process type and geography. A small amount of the process equipment installation costs, for
example tanks, were based on preliminary definitions by weight of plate works per tonne.
21.1.1.11 Electrical
Electrical material take-offs were prepared by Aker Solutions electrical engineers based on
preliminary design single line diagrams.
21.1.1.12 Instrumentation
The material take-offs for instruments and control valves were factored by mechanical
process equipment.
21.1.1.13 Piping
Piping material take-offs were based on preliminary layout sketches. Material take–offs are
net quantities.
Long run piping, such as the fresh water supply and concentrate pipeline have been
estimated from first principles, no geotechnical or geomorphological evaluation has been
undertaken in the PFS to confirm the selected pipe runs.
21.1.1.14 Construction Labour Cost

Labour Rates
The source for craft base wages was Chilean construction contractors and historical data
from Aker Solutions offices in Santiago, Chile. The crew composition was prepared based
on Chilean practices for similar projects.
For the estimate, a shift rotation of 14 days on site working twelve hours per day, then 7
days off was used. The labour rates are “all-in” rates and are expressed in U.S. Dollars.
Unit Man-hours and Productivity
Unit man-hours used for the estimate are from recent Aker Solutions projects in Chile. Site
specific conditions considered for productivity includes, but are not limited to: altitude,
weather, skills availability, camp distance and construction equipment usage
The construction equipment usage costs for the Caspiche Project includes fuel and
maintenance. The equipment usage costs exclude equipment operators. The costs for
equipment operators are incorporated into the unit man-hour rate of the work performed.
Unit man-hours rates are based on Aker Solutions historical data for the region.

January, 2012
Caspiche Project
Copiapó, Chile
21.1.1.15 Engineering, Procurement, and Construction Management (EPCM)

Engineering
Engineering includes Feasibility, Basic and Detail engineering, drawing production,
document control and all other activities required to complete the detailed engineering
necessary to finish the project. Home office engineering services include project
management, engineering, cost engineering and scheduling, estimating support, accounting
and construction contract planning.
Procurement
Procurement includes purchasing from local Chilean as well as off-shore sources.
Procurement responsibilities include: purchasing enquiries; negotiating terms and
conditions; placing purchase orders; providing logistics and traffic control; expediting
equipment and materials; inspecting purchased equipment and materials.
Construction Management
The estimate for construction management was developed based on the construction
master plan and preliminary construction execution plan. Construction management costs
were estimated using a preliminary and basic construction management organization chart.
The estimate also includes field expenses for construction management personnel. Field
expenses include travel, relocation, and the cost to return home.
Temporary Construction Facilities
Temporary construction facilities and infrastructure are included in the estimate as an
indirect cost. The type and size of the construction facilities have been identified in
accordance with the preliminary construction execution plan. Construction facilities and
infrastructure costs have been estimated by using factorized cost based in Aker Solutions
historical data and combined with the preliminary execution plan.
Temporary Site Utilities
Temporary site utilities are included in the estimate as an indirect cost.
Catering and Lodging

Catering and lodging for direct activities were included in the labour cost. Catering and
lodging costs for indirect personnel were estimated based on manpower projections during
the construction phase of the project. Catering and lodging costs include daily meals and
lodging for construction personnel. Costs for catering and lodging were developed from
historical data for the region
Vendor Representatives
The Vendor cost was factored by the cost of process equipment supply.
Start-up Spares
The cost for start-up spares are entered as a single line item in the indirect costs as a
factored cost from the process equipment cost.

January, 2012
Caspiche Project
Copiapó, Chile
Capital Spares
The cost for capital spares are entered as a single line item in the indirect costs as a
factored cost from the process equipment cost.
Inventory
The capital estimate recognises the need for the inventory of high volume consumables
such as steel balls, cyanide and others, this is addressed as working capital.
Start-up Assistance and Pre-Commissioning
Start-up assistance and pre-commissioning costs have been included in the indirect costs.
Start-up and pre-commissioning costs include craft labour support, field engineering, and
supervision. Costs for these activities were defined as a factor of cost of process equipment.
First Fill
First fill consists of supplying chemicals and lubricants for the plant and process equipment,
which are required for process plant start-up. The first fill cost was factored by cost of
process equipment supply.
Third Party Engineering Services
Third party engineering services include specialized engineering, testing, and inspection
services. These items are included in the indirect portion of the estimate. Costs for third part
engineering services were defined by Aker Solutions using historical databases or
benchmarking.
Freight Cost
The freight cost includes inland freight, port handling, forwarding fee, ocean freight, duties
and local freight. Cost for the contract is included in the indirect costs. The freight cost was
factored by cost of material and process equipment supply both local and foreign.

January, 2012
Caspiche Project
Copiapó, Chile
21.1.1.16 Owners cost.

Owners cost of MUS$ 150 is included in the capital estimate and was supplied by Exeter.
The estimate for owners cost includes such items as:
Estimate
Item
(M$US)
Project Management On/Off Site 14
Legal and Permitting 8
Public Relations 3
Spares and Inventory WC
Hydrology studies – pit, stockpiles, dams 0.5
Geotechnical studies – pit, stockpiles, dams 0.5
Environmental studies 4
Operations crew training 2
Condemnation drilling – all surface disturbance 5
Owners commissioning team 3
Community development contributions 3
General access road upgrade contribution 4
Water and land option conversions 79
Water supply development/permitting 15
Metallurgical testwork & Flotation/Roaster/POX
4
pilot plant
Water treatment plant 5
TOTAL 150
21.1.1.17 Contingency
The contingency is an amount added to an estimate to allow for unforeseen events,
conditions, or occurrences that experience indicates will likely happen during a project.
Typically, the amount of contingency applied to a project is determined by statistical analysis
or judgment based on experience from similar projects. Statistical analysis was used in the
estimate to calculate contingency using the software @Risk Version 4™. @Risk Version 4™
is software that uses the Monte Carlo method to simulate probable project cost outcomes.
The following events were excluded from contingency analysis:
Scope change
Substantial design change
Force majeure events
Acts of war
Labour conflicts
Change in execution plan
Insurance deductibles
Escalation
Currency effects

January, 2012
Caspiche Project
Copiapó, Chile
Change in mechanical soil conditions
21.1.1.18 Exchange Rates

The exchange rates used in the estimate are:
Table 21.5: Exchange Rates. Source: Banco Central de Chile
CURRENCY (A) (A)/USD USD/(A)
Australian Dollar AUD 1.0670 0.93721
Chilean Peso CLP 483.65 0.00207
Chinese Yuan CNY 6.4633 0.15472
Euro EUR 0.6933 1.44238
Japanese Yen JPY 80.89 0.01236
USA Dollar base USD 1.00 1.00
21.1.1.19 Taxes
All taxes are excluded from the estimate. Exclusions include sales tax, business taxes and
VAT.
21.1.1.20 Insurance
The insurance required by construction and services contractors is included in the contractor
costs. The general insurance strategy for the installations and “umbrella” type cover by the
owner, in agreement to the project definitions, are considered as “Owner Costs” and are
excluded from this CAPEX Estimate. The insurance of services and EPCM contactor are
included in the services costs.
21.1.1.21 Escalation
Escalation for labour, process and construction equipment, and material is excluded from
the estimate.
21.1.1.22 Exclusions
The following items are excluded from the definitive estimate:
Force majeure events
Owner’s contingency
Escalation
Working capital
Licenses and royalties
Finance cost

January, 2012
Caspiche Project
Copiapó, Chile
Taxes
Exchange rate fluctuation
Construction utilities (purchased water & power)
Operating manuals
21.2 Deferred and Sustainable Capital Cost

During the life of the project there will be a requirement for further capital expenditure. This
may take the form of additional mining fleet as required, capital spares and equipment and
further purchase of conveyors and crusher stations for the IPCC amongst others.
Sustainable capital estimates for each option evaluated are as per Table 21.6

January, 2012
Caspiche Project
Copiapó, Chile
Table 21.6: Sustainable Capital Estimates

Year
US$ US$ US$
Initial Capital -1 4,799,757,365 3,991,260,220 4,342,658,613
1 393,809,910 103,319,311 97,313,952
2 157,342,000 47,932,609 32,359,154
3 6,529,112 40,635,373 19,913,249
4 6,567,593 34,044,925 17,311,412
5 41,035,489 72,298,820 21,992,698
6 1,478,859 88,997,970 37,836,682
7 298,600 254,451,206 41,635,121
8 44,243,072 146,896,009 66,206,927
9 4,834,067 94,235,840 46,798,996
Sustaining Capital 10 6,449,319 88,435,130 71,253,672
11 25,029,979 49,557,200 38,727,629
12 118,910,021 20,077,273 25,105,849
13 3,929,252 20,026,121 65,417,219
14 34,733,247 14,764,565 13,568,503
15 805,210 10,256,575 1,105,000
16 15,276,065 4,969,866
17 10,810,825 15,660,493
18 325,000 9,700,254
19 975,000 650,000
Total Investment 5,645,753,095 5,104,576,037 4,970,185,289

January, 2012
Caspiche Project
Copiapó, Chile
21.3 Operating Cost Estimate

21.3.1 Mine Operating Cost
Open Pit
The open pit mine area direct costs include all mine operations to feed material to the
primary crusher. All costs associated with the operation and maintenance of the mine are
also included. Blasting operations have been assumed to be carried out by contractors and
a full Maintenance and Repair Contract (MARC) is assumed for the first 3 years of
operation.
Indirect costs such as training, material and office supplies were estimated and are included
in the mine operating costs. Food, catering, camp, transport, recreation, safety supplies and
work clothes are included in General and Administration costs.
The mine operating cost estimate incorporates costs for operations and maintenance labour,
staff, and operating and maintenance supplies for each year. Operating and maintenance
supplies are based on Chilean supply and include an allowance for freight and delivery to
the Caspiche site. Taxes are not included. Consumables were calculated from expected
use, unit consumptions, and allowances for minor items. Mine operating costs are
expressed in USD/tonne of total material movement.
(a) Operating Labour
Item 16 presents the organizational structure and total mine labour requirements for the
operation. Manpower cost was calculated using this data and consideration of Chilean high-
altitudes mine pay scales.
(b) Parts and Consumables
Consumables and wear parts unit prices were obtained from suppliers and manufacturers or
from NCL’s database for other Chilean mining projects and were used in the development of
project operating costs.
The fuel price used is 0.70 US$/L and corresponds to a projected price of 70 US$/barrel
F.O.B. Gulf Coast Waterborne and transformed to USD/L applying refining charges, market
margin, sea and internal freight, duties and applicable supplier factors. The power cost used
is 117 US$/MWH.
Main mine equipment consumptions were based on comparable projects and other similar
operations in Chile.
(c) Overhead Costs
Overhead costs covering items such as assaying, ore control, blasting studies, geotechnical
studies and programs, and miscellaneous items such as office supplies, light vehicles,
photos, and maps are considered and are based on other similar Chilean mining operations.
(d) Summary of Open Pit Mine Operating Costs
The open pit mining unit cost results are shown in Table 21.7.

January, 2012
Caspiche Project
Copiapó, Chile
Table 21.7: Total Unit Operating Costs (US$/t)
Super Pit Hybrid Leachable

Item
Option Option Pit
Loading 0.155 0.181 0.215
Hauling 0.599 0.701 0.472
Drilling 0.109 0.101 0.106
Blasting 0.120 0.130 0.178
Ancillary 0.086 0.129 0.154
Support 0.015 0.039 0.108
Eng. & Adm 0.040 0.071 0.211
Pit Dewatering 0.001 0.001 0.001
IPCC/EPCC 0.177 0.136 -----
TOTAL OPERATING COSTS 1.302 1.490 1.446
Underground
Preparation costs included in the operating costs were estimated using the unit costs shown
in Section 21.1 and the total area developed per year presented in the following tables.
Pre-production period cost is considered as capital cost. The capital cost estimate for
preproduction capital assumes all initial mine development is completed by contractors.
Hourly costs for the underground mine equipment were estimated using first principles.
Table 21.8: Selected Equipment Hourly Cost Estimate

Item Hourly Cost Estimate ($US/h)
3
LHD 10yd 124.14
80 t truck 144.83
Pickhammer 80.85
Reduction Jumbo 71.93

January, 2012
Caspiche Project
Copiapó, Chile
Mine Operating Costs Summary

Table 21.9 summarizes the operating costs for each option. It should be noted that the
Super Pit and the Hybrid Cases require 3 years of pre-production and the Full Underground
needs 10 years of development before delivering ore to the plant, development includes
further geomechanical studies, underground drill out and explorations declines amongst
others. The heap leach open pit cost for the Full Underground option have been developed
by NCL.
Table 21.9: Total Unit Operating Costs Underground Option (US$/t)

Hybrid Full UG
Item
Option Option
Extraction (LHD) 0,353 0,501
Secondary Reduction 0,200 0,200
Pickhammer 0,135 0,135
Orepass 0,150 0,150
Truck Hauling 0,261 0,176
Services 0,661 0,658
Levels Maint and Repair 0,250 0,250
Labor 2,157 2,198
Others 1,250 1,281
Mine Preparation 1.948 1,795
TOTAL OPERATING COSTS 7.366 7,344
21.3.2 Process Plant Operating Cost Estimate

21.3.2.1 Basis Estimate
The major Opex considerations for the 3 options evaluated were defined within the battery
limits of the project.
These battery limits are:
Upstream: mine operation.
Downstream: production of copper cathodes and bullion doré. Aker design is limited to
the production of calcine copper concentrate and doré, however the operating cost
estimate includes all off site costs associated with production of final product.

January, 2012
Caspiche Project
Copiapó, Chile
21.3.2.2 Labour
The labour estimate does not consider senior executives (General Manager and others) who
are included in G&A. The estimate for labour necessary in the concentrator plant was
estimated as per Table 21.10:
Table 21.10: Labour for concentrator plant

Area People
Administration / Supervisors 1
Sulphides Crushing 28
Grinding 37
Flotation 41
Concentrate Handling 27
Tailings Handling 23
Cleaner - Scavenger Tailings Treatment 29
Roasting 56
Scorodite Treatment and Disposal 8
This labour structure was used for the OPEX estimate for all three options. Labour rates for
similar Chilean operations were considered.
Labour rates include salaries, vacations, social laws and insurance. Labour rates do not
include personnel safety protection, transport, camps, catering and other expenses
necessary to maintain operations personnel, all of which are included in G&A.
21.3.2.3 Energy
Energy consumption was estimated based on the power used by the equipment. The energy
rate considered is 117 US$/MWh, this value considers a contract for build, own and operate
supply; energy consumption was estimated yearly.
21.3.2.4 Maintenance
Maintenance costs for the crushing and ADR plant have been estimated as 7 % of the direct
cost of the equipment, except for the pumping and pipe transport systems. In those cases
40 % of the energy cost was considered for water and clean solutions system transport and
60 % of the energy cost for slurry pumping systems.
21.3.2.5 Contracts
The pre-feasibility study considered the following main contracts:
Mobile equipment for crushing area.
Wall construction for tailings dam. The Super Pit considered rock wall dam, and the
Hybrid and Full Underground options a sand wall was considered.

January, 2012
Caspiche Project
Copiapó, Chile
21.3.2.6 Reagents and supplies

The reagents and supplies consumptions and prices considered for the Caspiche project
were based on quotations or Aker Solutions’ recent database of costs. Consumptions were
based on testwork considerations or similar projects.
21.3.2.7 General and Administration costs (G&A)

G&A for this project was estimated as 7 % of the total plant treatment cost, this includes
overhead.
This value considers the administrative costs of the process plant, laboratories and
warehouse. It also includes contracts for services such as office and industrial cleaning and
others that may be required.
The overhead for the project has been estimated as 5 % of the total value.
21.3.2.8 Contingencies
Contingences for this project at the current engineering level were estimated as 5 % of the
total value. The contingency considers areas which have not yet been defined.
21.3.2.9 Heap leach costs estimates

The oxide heap leachable portion of the deposit was estimated considering operating cost
basis for the Stand Alone Oxides Plant, 5 year Two Stage Crushing Prefeasibility Study
completed by Aker Solutions, and published on SEDAR on June 8th 2011. In addition to the
oxide portion a further heap leachable material, the MacNeill zone, has been identified. This
material will use the same infrastructure as the oxide heap leach but the process route will
be modified to include interlift liners, additional crusher capacity and a SART plant to recover
cyanide and copper from the pregnant solution. Operating costs for the MacNeill material
have been calculated on this operational basis.
21.3.2.10 Operating Cost Summary

Operating costs estimated for each case are shown in Figure 21.1, Figure 21.2 and Figure
21.3:

January, 2012
Caspiche Project
Copiapó, Chile
Figure 21.1: Super Pit Operating Cost Summary

1,000
Concentrator + Heap Leach

900
800
700
Concentrator
Op. Cost (MUS$/y)
600
500
400
300
200 Heap
Leach
100
0
-2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Period (Year)
Figure 21.2: Hybrid Operating Cost Summary

700
Heap Leach + Concentrator Concentrator Only
600
500
Op. Cost (MUS$/y)
400
300
200
Heap
Leach
100
0
-2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Period (Year)

January, 2012
Caspiche Project
Copiapó, Chile
Figure 21.3: Full Underground Operating Cost Summary

700
U'G development Concentrator
600
500
Op. Cost (MUS$/y)
400
300
200 Heap
Leach
100
0
-12 -11 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Period (Year)

January, 2012
Caspiche Project
Copiapó, Chile
21.3.2.11 Cost per tonne of ore

A summary for total unit cost is shown in the Table 21.11. Total operating costs per tonne of
ore for each option are shown in Figure 21.4 to Figure 21.6:
Table 21.11: Process Unit Cost Summary

COST
AREA UNIT
Mine US$/t ore 4.9 4.2 5.8



January, 2012
Caspiche Project
Copiapó, Chile
Figure 21.4: Super Pit Operating Cost per Tonne of Ore

15.0
10.0 Concentrator
Op. Cost (US$/t ore)
5.0
Heap
Leach
0.0
-2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Period (Year)
Figure 21.5: Hybrid Operating Cost per Tonne of Ore

18.00
Heap Leach + Concentrator Concentrator Only
16.00
14.00
12.00
Op. Cost (US$/t ore)
10.00
8.00
6.00 Heap
Leach
4.00
2.00
0.00
-2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Period (Year)

January, 2012
Caspiche Project
Copiapó, Chile
Figure 21.6: Full Underground Operating Cost per Tonne of Ore

50.0
U'G development Sulphides only
45.0
40.0
35.0
30.0
Op. Cost (US$/t)
25.0
20.0
15.0
Heap
Leach
10.0
5.0
0.0
-12 -11 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Period (Year)
21.3.2.12 Cost per ounce of gold equivalent

Cost per ounce of equivalent gold for each option are shown in Figure 21.7 to Figure 21.9.
Gold equivalent operating costs were calculated by dividing total metals revenue by the gold
price per ounce used in each year.

January, 2012
Caspiche Project
Copiapó, Chile
Figure 21.7: Super Pit: Cost per ounce of gold equivalent

900
800
Concentrator
700
Op. Cost (US$/oz Au eq)
600
Heap
Leach
500
400
300
200
-2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Period (Year)
Figure 21.8: Hybrid: Cost per ounce of gold equivalent

900 Heap Leach + Concentrator Concentrator Only
800
700
600
Heap
Op. Cost (US$/oz Au eq)
Leach
500
400
300
200
100
0
-2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Period (Year)

January, 2012
Caspiche Project
Copiapó, Chile
Figure 21.9: Full Underground: Cost per ounce of gold equivalent

2,000
U'G development Sulphides only
1,800
1,600
1,400
Op. Cost (MUS$/oz Au eq)
1,200
1,000
800
600
Heap
Leach
400
200
0
-9 -8 -7 -6 -5 -4 -3 -2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Period (Year)

January, 2012
Caspiche Project
Copiapó, Chile
22.0 ECONOMIC ANALYSIS

The economic analysis is based on the estimated CAPEX and OPEX and revenue
calculated thereof. The CAPEX and OPEX were developed as noted in Item 21. This section
illustrates the projects revenues and associated economic analysis. Cash flow and
economic analyses were performed from effective date that equipment was on the project
site.
The economic analysis excludes taxes but includes Anglo American royalty of 3 %.
Sensitivities based on commodity price, metals recovery, operating cost and capital
expenditure variation are highlighted in Figure 22.4 to Figure 22.6 and the results discussed
in section 22.3.
The economic evaluations completed for this section indicate that the Super Pit is the
preferred option to be developed to Feasibility Study level.
22.1 Production and Revenue

Total payable metal production for the options evaluated is summarized in Table 22.1:
Table 22.1: Payable Metal Production
METALS PAYABLE PRODUCTION
Item Unit Super Pit Hybrid Full Underground

Copper Production Mlb 4,003 3,267 2,331
Gold Production koz 12,983 10,795 7,727
Silver Production koz 14,736 11,968 8,360
The revenue associated with these payable metal productions is presented in Table 22.2.
The revenue was calculated using the following metal prices:
Au 1,430 US$/oz Years 1 - 415
1,200 US$/oz remaining LoM
Cu 2.75 US$/lb LoM
Ag 31.2 US$/oz years 1 - 4
22.5 US$/oz remaining LoM
15
Yrs 1- 4 used for precious metals prices are from heap leach start up. As such in the case of the Super Pit and
Hybrid option these metal prices are used for the first 4 years of heap leach production and the first 2 years of
concentrator production. In the case of the Full Underground option these metals prices are used for heap leach
production only.

January, 2012
Caspiche Project
Copiapó, Chile
Table 22.2: Revenue
REVENUE (MUS$)

Copper Revenue 11,009 8,985 6,411
Gold Revenue 16,051 13,332 9,520
Silver Revenue 358 292 203
Total Revenue 27,419 22,609 16,134
22.2 Economic Analysis

The economic evaluation was developed for all options considering Net Present Value
discounted at 5 % (NPV5) and illustrates Internal Rate of Return (IRR) and Payback Period.
A summary of these indicators for all options is presented in Table 22.3:
Table 22.3: Economic Evaluation
ECONOMIC EVALUATION – INDICATORS
Indicator Unit Super Pit Hybrid Full Underground

NPV@5 MUS$ 2,800 2,142 375
IRR % 11.5 10.4 7.3
( )
( )
* from initial investment
The cash flows for each option are presented in Figure 22.1 to Figure 22.3.

January, 2012
Caspiche Project
Copiapó, Chile
Figure 22.1: Cash Flow – Super Pit
10,000
8,000
6,000
Cash Flow Net Value (MUS$)
4,000
2,000
0
-3 -2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
-2,000
-4,000
-6,000
Period (year)
Figure 22.2: Cash Flow – Hybrid
8,000
6,000
4,000
2,000
0
-3 -2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
-2,000
-4,000
-6,000
Period (year)

January, 2012
Caspiche Project
Copiapó, Chile
Figure 22.3: Cash Flow – Full Underground
4,000
3,000
2,000
1,000
0
-15 -10 -5 0 5 10 15 20 25
-1,000
-2,000
-3,000
-4,000
Period (year)
A sensitivity analysis for NPV5 was completed for all options considering metals recoveries
and prices and variations in the CAPEX and OPEX. This sensitivity analysis is summarized
in Figure 22.4, Figure 22.5 and Figure 22.6 as follows:

January, 2012
Caspiche Project
Copiapó, Chile
Figure 22.4: Super Pit: NPV5 Sensitivity Analysis
4000
3500
3000
2500
NPV (MUS$)
2000
1500
1000
500
0
-15% -10% -5% 0% 5% 10% 15%
Delta
Figure 22.5: Hybrid: NPV5 Sensitivity Analysis
3,500
3,000
2,500
NPV (MUS$)
2,000
1,500
1,000
500
0
-15% -10% -5% 0% 5% 10% 15%
Delta
Opex Capex Silver Re covery/Price Copper Re covery/Price Gold Recovery/Price

January, 2012
Caspiche Project
Copiapó, Chile
Figure 22.6: Full Underground: NPV5 Sensitivity Analysis
900
800
700
600
NPV (MUS$)
500
400
300
200
100
0
-15% -10% -5% 0% 5% 10% 15%
-100
Delta
A sensitivity analysis for NPV=0 was completed for all options considering metals recoveries
and prices and variations in the CAPEX and OPEX. This sensitivity analysis is summarized
in Table 22.4. NPV = 0 is effectively breakeven for the project. Table 22.4 illustrates the
metal values where breakeven occurs and highlights the robustness of the Caspiche
Project.
Table 22.4: Sensitivity Analysis For NPV=0
INDICATORS FOR NVP = 0

Full
Item Super Pit Hybrid
Underground
Price Copper 1.52 1.49 2.24
Price Gold (Years 1 - 4) 1,024 1,034 1,297
Price Gold (Remaining LoM) 859 868 1,089
A sensitivity analysis for Cu price of 3.54 US$/lb (December 7th, 2011) was completed for all
options. This sensitivity analysis is summarized in Table 22.5.

January, 2012
Caspiche Project
Copiapó, Chile
Table 22.5: Cu Current Market Price
ECONOMIC EVALUATION - INDICATORS FOR Cu = 3.54 US$/lb

Full
Indicator Unit Super Pit Hybrid
Underground
NPV@5 MUS$ 4,605 3,490 961
IRR % 14.8 13.2 10.8
( )
A sensitivity analysis for Au price of 1,731 US$/oz (December 7th, 2011) was completed for
all options. This sensitivity analysis is summarized in Table 22.4.
Table 22.6: Au Current Market Price
ECONOMIC EVALUATION - INDICATORS FOR Au = 1,731 US$/oz

Full
Indicator Unit Super Pit Hybrid
Underground
NPV@5 MUS$ 6,598 5,116 1,858
IRR % 18.7 16.8 79.6
( )
22.3 Conclusions from the Economic Analysis

The NPV5, IRR and payback period indicate the following:
The Super Pit option provides the most favourable economic return followed by the
Hybrid and then the Full Underground.
Payback period is shortest for the Super Pit case due to economies of scale due to higher
tonnage rate and the lower cost for the heap leach process.
The Super Pit option provides the highest revenue due to the largest reserve exploitation
of the options studied.
The Full underground case is prejudiced against due to long development time. This is
somewhat mitigated by early cash flow from the stand alone heap leach operation during
underground mine development.
The sensitivity analyses indicate:
Super Pit sensitivity analysis indicates that it is most sensitive to gold recovery ahead of
operating costs and then copper recovery.
Metals fluctuation impact is expected. Opex sensitivity is largely due to the high
volume of waste material to be moved which increases sensitivity impacts.

January, 2012
Caspiche Project
Copiapó, Chile
Hybrid Option sensitivity analysis indicates that it is most sensitive to gold price followed
by Opex and then Capex.
Capex impact is due to the long lead time to develop the underground mine
operation and the smaller benefits associated with the EPCC system.
Full Underground sensitivity analysis indicates the greatest impact in gold price followed
by Capex and Opex. Capex impact is greater due to long underground development
timeoperation.
The sensitivity analysis shows maximum variation of NPV5 for Super Pit is MUS$ 1,841
and for Hybrid is MUS$ 1,382. The difference for Super Pit is higher because it has a
shorter mine life than the Hybrid and at the same time processes more ore.
Based on the above, the Super Pit option is that which is recommended for development to
feasibility Study level. The key reserve and mining parameters used to reach this conclusion
are as per Table 22.7.
Table 22.7: Key Reserve and Mining Parameters

Au Ag Cu
Reserves Mt
g/t g/t %
Oxide Ore 124 0.38 1.62 <0.01
MacNeill Ore 78 0.51 1.05 0.07
Sulphide Ore 889 0.58 1.13 0.24
Cu Au Ag Eq Au
Contained Metal Mt Moz Moz Moz
2.1 19.3 41.5 30.1
MacNeill
LOM Oxide Process Open Pit Feed
Process
Yr kt/d kt/d
kt/d
19 72 33 150
Mine Schedule
Max. Open Pit Avg. Open Pit
Mvment. Mvment.
kt/d kt/d
909 655

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Copiapó, Chile
23.0 ADJACENT PROPERTIES

There is no property immediately adjacent to the Caspiche project that is at the same state
of development as the Caspiche Porphyry deposit.

January, 2012
Caspiche Project
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24.0 Other Relevant Data and Information

24.1 Project Execution
A Level 1 schedule has been developed for the execution of the three project options. The
Summary Project Master Schedules are shown in Figure 24.1 to 24.3.
Figure 24.1: Super Pit Project Master Schedule

YEAR -6 YEAR -5 YEAR -4 YEAR -3 YEAR -2 YEAR -1
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
MILESTONES
Start Construction
Engineering Completion
Mechanical Completion
Project Completion
PERMITTING
EIA Preparation & Approval
Sectorial Permits
Construction Permit
ENGINEERING
Feasibility Study
Geotechnical Evaluation
Hydrological Mapping
Basic Engineering
B. E. CAPEX
IPCC Detail Engineering
Detail Engineering
PROCUREMENT (Inc. Expediting)
Mills
Crushers
Mining Equipments
Power Electrical Equip.
Flotation Area Equipments
General Material & Equip. Procure
IPCC Procurement
CONTRACTS
Services Contracts
Mass Earthwork Bidding Contract
Mass Earthwork Mobilization
Concrete Bidding Contract
Concrete Bidding Mobilization
Erection Bidding Contract
Erection Bidding Mobilization
Others Contract
CONSTRUCTION
General
Access Road
Camp
Prestripping
Mass Earthwork
Leaching - Liner & Collection
Mine Area
Infrastructure
Heap Leach Crushing & Stockpile
- Concrete & Structural Steel
- Mechanical & Piping Install.
- Electrical & Intrum.
Sulphide Crushing area
Concentrator Plant & Grinding Circuit
- Electrical & Instrumentation
Flotation
Concentrate, Tailings Handling & Dam
Sulphide Reagents
Leaching
ADR Plant
Heap Leach Reagents
Scavenger Tails & Concentrate treatment
Roasting Area
Utilities (Air, Water)
Power (S/E, Powerline)
IPCC Construction
Areas Pre-commissioning
COMMISSIONING & TOP´s
Heap Leach Crushing & Stockpile Comm.
Sulphide Crushing Comm.
Concentrator Plant Commissioning
Heap Leach & Sulphide Full Commercial Production Start
Commercial Prod.

January, 2012
Caspiche Project
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Figure 24.2: Hybrid Project Master Schedule

YEAR -6 YEAR -5 YEAR -4 YEAR -3 YEAR -2 YEAR -1 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
MILESTONES
Start Construction
Mechanical Completion
Project Completion Heap Leach
PERMITTING
Sectorial Permits
Construction Permit
ENGINEERING
Feasibility Study
Basic Engineering
B. E. CAPEX
EPCC Detail Engineering
Detail Engineering
Mills
Crushers Open Pit
Crushers Underground
Mining Equipments
Flotation Area Equipments
EPCC Procurement
CONTRACTS
Services Contracts
Concrete Bidding Mobiization
Erection Bidding Mobilization
Others Contract
CONSTRUCTION
General
Access Road
Camp
Prestripping
Mass Earthwork
Mine Area
Infrastructure
Heap Leach Crushing & Stockpile
- Electrical & Instrumumentation
Heap Leach Reagents area
Flotation
Concentrate, Tailings Handling & Dam
Sulphide Reagents
Leaching
ADR Plant
Scavenger Tails & Concen. Treatment
Roasting Area
Utilities (Air, Water)
EPCC Construction
Areas Pre-commissioning
Underground Crusher system installation
Sulphide Crushing Comm.
Concentrator Plant Commissioning
EPCC Commissioning Start
Commercial Prod.
Open Pit Full Commercial Production
Underground Crusher system Commissioning Start
Commercial Prod.
Underground Full Comercial Production

January, 2012
Caspiche Project
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Figure 24.3: Full Underground Project Master Schedule

YEAR -14 YEAR -13 YEAR -12 YEAR -11 YEAR -10 YEAR -9 YEAR -8 YEAR -7 YEAR -6 YEAR -5 YEAR -4 YEAR -3 YEAR -2 YEAR -1
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
MILESTONES
Start Construction Heap Leach Plant
Start Construction UG Plant
Mechanical Completion Heap Leach Plant
Project Completion
PERMITTING
Sectorial Permits
Construction Permit
ENGINEERING
Feasibility Study
Basic Engineering
Detail Engineering
Heap Leach Crushers System
Heap Leach Plant equipmnet
Mills
Mining Equipment
Flotation Area Equipment
CONTRACTS
Services Contracts
Concrete Bidding Mobilization
Erection Mobilization
Others Contract
CONSTRUCTION
General
Access Road
Camp
Mass Earthwork
Mine Area
Infrastructure Phase I
Heap Leach Crushing & Stockpile 29,614 29,614 29,614 19,743
- Electrical & Instrum.
Heap Leach Reagents area
Leaching
ADR Plant
Infrastructure Phase II
- Electrical & Instrum.
Flotation
- Electrical & Intrum.
Concentrate, Tailings Handling & dam
Sulphide Reagents
Scavenger Tails & Concentrate treatment
Roasting Area
Utilities (Air, W ater)
Heap Leach Plant Pre-commissioning
Heap Leach Plant Commissioning
Heap Leach & Sulphide Full Commercial Production
Sulphide Crushing Commissioning Start
Concentrator Plant Commissioning Commercial Prod.
UG Full Commercial Prodution

January, 2012
Caspiche Project
Copiapó, Chile
NI 43-101 Technical Report Caspiche Pre-feasibility
Study
24.1.1 Early Construction Activities

In order to comply with the project schedule critical early activities must be completed,
before the principal construction required on site. These include earthworks, storage and
waste handling, provision of services and buildings and will commence during the project
basic or detail engineering phase but should be considered during all development phase
timelines. Prior to starting any site work the global environmental licence must be awarded
and the relevant sectorial permits must be approved.
In order to complete these anticipated items it will be necessary to develop as much detail
engineering as possible. It will also be necessary to proceed with the following pre-approval
activities:
Procurement process for critical equipment for mine development and heap leach ore
treatment, so purchase orders can be placed immediately after project approval.
Bid and evaluation process for the selection of the EPCM contractor.
Negotiations and agreements with landowners in areas where facilities are required for
the project but where the land does not belong to Exeter.
24.1.2 Critical Path

The critical path for the project runs through the environmental permitting, the main access
road construction, the supply of temporary facilities and mine pre-stripping activities.
Trade-off studies may be required prior to the Feasibility Study to confirm the Super Pit is
still the preferred option and to incorporate all subsequent testwork competed. Based on the
Super Pit option the estimated project development time is:
Super Pit Alternative: 57 months with 95% construction completion achieved in 54
months. Overall project execution is estimated as being 63 months
24.1.3 Contracting Strategy
24.1.3.1 Introduction
On completion of feasibility study the company will review the various contracting options for
the project. This section discusses options for contracting the engineering, procurement,
contracts, project controls, construction management, construction and commissioning
services for the implementation of the Caspiche project.
It is expected that the EPCM contractor will be based in Chile and will have relevant EPCM
experience within the region. However there will be areas where it is advantageous to
Exeter to award EP or EPC contracts, particularly when considering large capital equipment
items.
24.1.3.2 Engineering, Procurement and Construction Management

EPCM has been the predominant form of contracting mining project implementation services
in Chile over the last 20 years. Some of the services will be carried out by the owner but the
majority of the work will be executed by the EPCM contractor and its sub-contractors or

January, 2012
Caspiche Project
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Study
partners. Consequently, the execution plan is based on one EPCM contractor executing the
scope of services for the entire project.
24.1.4 Engineering
Detailed engineering will be carried out by the EPCM contractor.
The basis for the detail design will be the feasibility study and the drawings and documents
prepared. At the start of the detail design stage the design basis will be confirmed.
24.1.5 Procurement
The EPCM contractor’s Procurement Manager will be responsible for the overall
management of procurement activities in home office and field. The EPCM contractor’s
Procurement Manager will be responsible for developing the Project Procurement Plan
which identifies the schedule for procurement, expediting requirements, shipping logistics
and other important issues.
24.1.6 Construction Execution Plan

24.1.6.1 Organization and Construction Manpower
This execution plan has been developed taking into account the specific requirements for
construction of the Caspiche project. The number and distribution of project staff for Exeter
and the EPCM contractor and for construction contractors have been estimated. The Super
Pit option will be constructed in one phase.
It is assumed that construction labour will work 200 hours per month. The peak staff will be
reached in Q3 of 2013 and is estimated at 5,244 people on site. Site personnel will work 21
days on 7 off and it is estimated that approximately 25% of them will be accommodated in
Copiapó or other satellite camps.
In the Hybrid option, the project will be constructed in two phases as described below:
Phase 1
Phase 1 has been defined as the start up of the heap leach and the processing of the PLS in
an ADR and EW plant to produce metal doré from Year 1 (2013) to Year 2 (2014).
The treatment of ore by heap leach will continue for approximately 12 years
Phase 2
Phase 2 is the start up of the concentrator (crushing-grinding-flotation) to treat sulphides to
produce concentrate which will be fed to a partial atmosphere roaster to remove arsenic
within the concentrate and produce a commercially viable calcine concentrate followed by
CIP leaching of the scavenger tails.
In the Full Underground option, the project will be constructed in two phases in a similar
manner to the Hybrid option.

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Study
The project will use a shift system according to the Chilean law for all personnel including
Exeter EPCM contractor staff as well as direct and indirect construction and service
contractors’ staff. The estimate used in this report is based on the following shift system:
24.1.6.2 Camp
The camp will be designed as an integrated construction and operations (permanent) camp
and will be bid early in the project implementation phase on a design, supply and erect
contract basis. The camp capacity will be defined by the peak of personnel at site. The
construction of the camp will be phased to meet the accommodation requirements.
Power Generation, Clinic and Battery Limits for all phases have all been considered in the
design and drawings by Aker.
24.1.6.3 Pre-Commissioning, Commissioning and Handover

The project objective is to complete the commissioning and start-up of the Caspiche project
facilities on schedule, safely and within budget. Planning for commissioning activities will
commence in parallel with detail design and constructability reviews. The required plant
start-up sequence will define the construction schedule, contracting plan and strategies,
engineering priorities, PO terms and schedules and design deliverable dates.
The EPCM Contractor will assign a commissioning team in conjunction with the construction
team and Exeter’s operations personnel. The Commissioning Manager will finalize the
detailed commissioning program. The participation of Exeter’s operating team is a key
component of the overall commissioning plan. Their participation during wet commissioning
will provide them with an opportunity to learn about process operations before performance
testing and plant hand-over.
The commissioning period will start with the introduction of ore to the plant.
After commissioning the plant will go through a ramp-up period until it achieves full
production capacity. Ramp-up to full production is scheduled to occur over a three month
period.

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Study
25.0 INTERPRETATION AND CONCLUSIONS
25.1 Conclusions
No fatal flaws were identified during the course of the Caspiche Project prefeasibility
study. All mine, plant and infrastructure design was based on conventional, proven
equipment and techniques currently in day to day use in Chile and other countries.
The financial analysis indicated that all alternatives for the project had a net positive
cash flow and an acceptable internal rate of return and could support the progression to
mine development
At the metals prices used and based on the economic evaluations in item 22.2, the
Super Pit option is the most attractive alternative. The use of in-pit crushing and
conveying systems for the waste provide further upside benefits to the Super Pit option.
As such the Super Pit option should be further developed to FS level.
The Super Pit option also provides the lowest risk alternative of the 3 options evaluated.
There is no need for extensive underground evaluation as required for the Hybrid and
Full Underground options.
Execution of this project type is well understood in Chile thus neither topography or
altitude present excessive challenges
The topography around the project area is reasonably benign, thus there are no great
haul road inclines outside of the pit area and the overall area allows easy incorporation
of plant and infrastructure without major earthworks requirement.
The project economics derived in sections 21 and 22 show that the Super Pit option has
robust economics under the metals prices used and a considerable metals price
reduction prior to reaching project breakeven. This is shown in Table 25.1.
Table 25.1: Project Break-even Analysis
INDICATORS FOR NVP = 0

Price Copper 1.52 1.49 2.24
Price Gold (Years 1 - 4) 1,024 1,034 1,297
Price Gold (Remaining LoM) 859 868 1,089
Three mining options with their corresponding plants were evaluated:

An open pit option, designated ‘Super Pit case’ extracting an average of 150,000
t/d sulphide ore over a project life of 19 years. A heap leach facility will also
operate in parallel with the sulphide concentrator for the first 9 years, processing
a maximum of 72,000 t/d heap leach ore.

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Study
A combined open pit and underground option, designated ‘Hybrid’, extracting an

average of 95,000 t/d sulphide ore over a project life of 24 years. A heap leach
facility will also operate in parallel with the sulphide concentrator for the first 9
years operation, processing a maximum of 72,000 t/d heap leach ore.
An underground option, designated ‘Full Underground’, extracting an average of
90,000 t/d sulphide ore for 22 years from year 9 of the project A heap leach
facility will also operate in parallel with the sulphide concentrator for
approximately the first 9 years operation, processing a maximum of 72,000 t/d
heap leach ore.
Oxide and leachable MacNeill production was largely the same for each of the
sulphide options considered in the study.
Proven and Probable Reserves for the three options were established and are
summarized in Table 25.2, 25.3 and 25.4.:
Table 25.2: Super Pit – Proven and Probable Reserves (Carlos Guzman, CChM,
October 2011)
Super Pit
Contained Metal
Proven 62 0,42 1,71 4 0,46 0,08 0,70 321 0,62 0,26 1,10 7,3 0,8 14,8
Probable 62 0,33 1,52 74 0,51 0,07 1,08 568 0,55 0,23 1,15 11,9 1,3 26,6
Total 124 0,38 1,62 78 0,51 0,07 1,05 889 0,58 0,24 1,13 19,3 2,1 41,5

1. Mineral Reserves are defined within a mine plan with pit phase designs guided by Lerchs-Grossman (LG) pit.
The LG shell generation was performed on Measured and Indicated materials only, using a gold price of 1,150
US$/oz, a silver price of 20 US$/oz and a copper price of 2.5 US$/lb, a base mining cost of 1.00 US$/t with
incremental of 0.025 US$/t per 15 m bench below the pit exit and 0.015 US$/t per 15 m bench above the pit exit.
Processing and treatment costs used were 3.40 US$/t of ore and 6 US$/oz of gold and 0.4 US$/oz of silver for
oxides, 5.31 US$/t and 6 US$/oz of gold and 0.4 US$/oz of silver for MacNeill and 7.04 US$/t and 6 US$/oz of
gold and 0.4 US$/oz of silver for sulphides. Royalties were also applied. Metallurgical recoveries for oxides were
78 % for gold and 34 % for silver. Metallurgical recoveries for MacNeill were 55 % for gold in the upper layers
and 30 % in the lower layers and 20 % for silver. Silver metallurgical recovery for sulphides was 50 %. Copper
and gold metallurgical recovery for sulphides was a function of the head grade,
6. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes,
grade and contained metal content.

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Study
Table 25.3: Hybrid Case – Proven and Probable Reserves (Carlos Guzman, CChM,
October 2011)

Contained Metal
Proven 62 0,42 1,71 4 0,46 0,08 0,70 273 0,65 0,27 1,13 6,6 0,7 13,4
Probable 62 0,33 1,52 65 0,51 0,07 1,07 387 0,62 0,25 1,21 9,4 1,0 20,4
Total 124 0,38 1,62 70 0,50 0,07 1,05 660 0,63 0,26 1,18 16,0 1,7 33,8
Hybrid Case Reserves Notes:

1. Mineral Reserves for the open pit are defined within a mine plan with pit phase designs guided by Lerchs-
Grossman (LG) pit. The LG shell generation was performed on Measured and Indicated materials only, using a
gold price of 1,150 US$/oz, a silver price of 20 US$/oz and a copper price of 2.5 US$/oz, a base mining cost of
1.00 US$/t with incremental of 0.025 US$/t per 15 m bench below the pit exit and 0.015 US$/t per 15 m bench
above the pit exit. Processing and treatment costs used were 3.40 US$/t of ore and 6 US$/oz of gold and 0.4
US$/oz of silver for oxides, 5.31 US$/t and 6 US$/oz of gold and 0.4 US$/oz of silver for MacNeill and 7.04
US$/t and 6 US$/oz of gold and 0.4 US$/oz of silver for sulphides. Royalties were also applied. Metallurgical
recoveries for oxides were 78% for gold and 34 % for silver. Metallurgical recoveries for MacNeill were 55 % for
gold in the upper layers and 30 % in the lower layers and 20 % for silver. Silver metallurgical recovery for
sulphides was 50 %. Copper and gold metallurgical recovery for sulphides was a function of the head grade.
Table 25.4: Full Underground Case Case – Proven and Probable Reserves (Carlos
Guzman, CChM, October 2011)
Full Underground
Contained Metal
Proven 57 0,43 1,69 7 0,47 0,11 0,82 158 0,72 0,31 1,22 4,5 0,5 9,5
Probable 55 0,34 1,44 67 0,56 0,11 1,16 243 0,67 0,29 1,30 7,0 0,7 15,1
Total 112 0,39 1,57 74 0,55 0,11 1,12 400 0,69 0,30 1,27 11,6 1,2 24,6

1. Mineral reserves for the block cave in the underground mine were defined using the Laubscher dilution model,
considering a 60 % Dilution Entry Point and a maximum ore column height of 500 m. The grade of the waste
and inferred material was assumed as zero. Only sulphides material was considered as economical. The
economic parameters used for the determination of reserves were a gold price of 1,150 US$/oz, a silver price of
20 US$/oz and a copper price of 2.5 US$/oz, an average mining cost of 7.0 US$/t. Processing and treatment
costs used were 7.04 US$/t and 6 US$/oz of gold and 0.4 US$/oz of silver. Royalties were also applied. Silver
metallurgical recovery for sulphides was 50 %. Copper and gold metallurgical recovery was a function of the
head grade.

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Study
Total metal contained in the reserves for the three options was calculated and is
summarized in Table 25.5:
Table 25.5: Total Contained Metal
Contained Metal (Oxide + MacNeill + Sulphide)

Option
Au (Moz) Cu (Mt) Ag (Moz) Eq Au (Moz)
Super Pit 19.3 2.1 41.5 30.1

Hybrid 16.0 1.7 33.8 24.7
Full UG 11.6 1.2 24.6 17.8
Note: The metal prices used to estimate gold equivalent (Eq Au) were 1,150 US$/oz of gold, 20 US$/ oz
of silver and 2.5 US$/lb of copper
Summaries of the Capital and Operating Costs estimated for the three options are as per
Table 25.6 and 25.7.
Table 25.6: Capital Cost Estimate

Full
CAPEX / OPTION Super Pit Hybrid
Underground
Mine 945,227,824 784,709,025 983,319,716
Process plant 1,426,134,955 1,177,895,449 1,131,218,267
Infrastructure (including Power and Water supply
419,852,678 432,702,291 436,867,733
& access)
Indirect (incl. G&A and Owners Cost) 870,184,179 745,112,334 770,248,136
Other 310,991,493 167,207,809 299,489,409
Contingency 827,366,227 683,633,302 721,515,343
Total 4,799,757,356 3,991,260,210 4,342,658,604

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Study
Table 25.7: Average operating costs ($/t ore processed) life of mine
COST
AREA UNIT
Mine US$/t ore 4.9 4.2 5.8


The capital and operating cost results were very much in line with those expected for a
high altitude Chilean porphyry project of this type. Operating costs were generated from
first principles and benchmarked against other operations. Capital costs were based on
quotes for approximately 40 % of the equipment costs and Aker’s database information.
Capital costs were also benchmarked against similar operations.
The rock and ore characteristics for Caspiche are generally mid-range for these styles of
deposits. Rock mass characteristics are mostly good and comminution characteristics
indicate the ore to be somewhat softer and less abrasive than other Chilean porphyries.
The mine plan is appropriate to the mineralization and adequately reflects the deposit
type, dimensions and host rock characterization.
Additional metallurgical studies are needed prior to a construction decision to optimize
recovery and equipment selection, on oxide, MacNeill and sulphide ores.

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To advance the project to construction Exeter will require an approved environmental

impact study, additional baseline studies required to support the impact study should be
initiated as soon as possible.
Additional geotechnical and hydrological studies are required particularly to model
surface water flows into the Vegas or seasonal creeks.
25.2 Opportunities
The project has further exploration potential in the areas around Caspiche and there is
resource potential in Caspiche Epithermals.
Additional geotechnical evaluations may permit selective slope steepening of the open
pit and the use of variable bench heights. Further mine fleet optimization is possible.
Ongoing testwork such as High Pressure Grinding Rolls; fine liberation of gold and
copper may positively impact project operating costs.
There is a potential to share infrastructure development costs, such as access roads,
power lines and water supplies, with other neighboring operations.
As indicated in item 22 the project economics are sensitive to metal prices. Conservative
long term metals prices have been used in the project evaluation.

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26.0 RECOMMENDATIONS
26.1 General Project Recommendations
Before advancing to detailed feasibility study level all relevant testwork and other
development updates should be applied once more to all three options studied to confirm
that the criteria used in the selection of the Super Pit as the preferred option l are still
valid.
Further options for the location of the concentrate treatment plant and subsequent
product transport should be evaluated in trade-off studies prior to initiating detailed
feasibility studies
Water supply studies, easement corridors and land acquisition negotiations should be
advanced as these can be a time consuming processes
In more detail the recommendations pertaining to the mine and process plant are noted
below.
26.2 Mining
A double bench 30 m configuration may improve mining economics.
A short-term analysis of the pre-stripping and first years of production to determine the
variation of feed and identify operational problems should be completed.
Further studies to improve the geotechnical slope angle of the pit and the stability of the
waste dump should be completed. This may allow selected pit wall steepening.
Analyse the potential benefit to use narrow phases in the Super Pit option for a better
distribution and delaying of the waste movement per year.
The following studies would be necessary to develop underground engineering:
Exploration drift development to confirm rock characterization.
Hydrogeological studies.
Expand structural and geotechnical understanding of the deposit.
26.3 Process
Identify potentially leachable low grade ore which may extend heap leach operations.
A detailed leach pad sequential construction plan should be developed as part of the
feasibility study.
Review the possibility of using a shorter initial leach cycle with higher lifts for the oxide
ore thus accelerating early cash flow
Augment the metallurgical database with additional representative samples to ensure that
the recovery and comminution processes selected are fully characterized. Use the
database to begin construction of a geometallurgical model for development and later
operational use.
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Continue flotation optimisation testwork to maximise selective copper and gold recovery,
especially in the rougher stages
Continue process and equipment testwork to develop the most efficient combination of
processes to recover gold and copper from cleaner-scavenger tails.
Continue to review and optimise tailings dewatering technologies and strategies to
maximise water recovery and in-situ bulk density.
Review and optimise equipment selection to use the most efficient high capacity
equipment available as new prototypes become proven.
Use existing pilot plant products for additional vendor equipment testwork. If the products
become unsuitable or unavailable, consider another pilot plant campaign ahead of the
feasibility study or as part of it.
Economic evaluation considerations and inputs should be updated as ongoing
metallurgical testwork results become available.
26.4 Feasibility Study

Assuming that the outcome of the PFS and cash flow model meets Exeter’s internal
requirements to proceed, it is recommended that a definitive feasibility study (DFS) be
completed to confirm the economics of the Super Pit project at a higher level of accuracy
(±10-15%).
The project schedule is aggressive, see item 24.1, and is based on a decision to proceed to
DFS in Q3, 2012, with completion of the study by the end of Q2 2013.
Significant new information needs to be developed in most areas, including:
Metallurgy: additional testwork to confirm process parameters used for equipment
definition and design purposes; and to confirm or revise inputs to the mining and
financial models.
Geotechnical: confirmation of assumptions made regarding rock strength, foundation
conditions, slope stability, leach pad permeability, waste dump design, through further
field investigations, laboratory testwork and data analysis.
Topography: detailed topographic information is required for specific installation
designs and material take-offs at the required accuracy.
Geochemical definition of the PAG nature of waste rock, to support requirements for
contact-water treatment plant, and with implications for closure activities.
Hydrogeological testing to confirm water flows and de-watering requirements for the
open pit.
Engineering design and costing to required level of accuracy, i ncluding: development
of PFDs, P&IDs, arrangement drawings and take-offs electrical, piping and structural
design, major equipment specifications developed for budget pricing from suppliers,

January, 2012
Caspiche Project
Copiapó, Chile
Study
identification of suitable local suppliers and contractors, to obtain budget prices and
unit rates for minor equipment, civil works, materials and construction activities
estimation of EPCM costs
Environmental: completion of the EIA, as a basis for permitting activities.
Community relations: continue the process of providing information to local
communities, resolving potential issues as part of the design process.
Project implementation: more detailed discussions with Exeter concerning the
approach to project design and construction.
26.4.1 Estimated Budget

Table 26.1 illustrates the key areas and costs that have been identified to complete the FS.
As the project develops these costs will be refined and updated.
Table 26.1: Key Areas and Costs

Cost Estimate
Task
(MUS$)
Feasibility study 7
Additional mining studies 1
Condemnation drilling 5
EIA 4
Metallurgical test work 4
Water rights and evaluation 5
Geotechnical evaluation 0.5
Hydrological evaluation 0.5
Land acquisition / easement 3
Community Relations 1
Additional site studies – topography etc 1
Total 32

January, 2012
Caspiche Project
Copiapó, Chile
Study
27.0 REFERENCES
Aker Solutions, Stand Alone Oxides Plant, Pre-feasibility Study, June 2011.
AKL Ltda., Nota Geotechnica No. NCL 2011-01, March 2011.
AMTEL Ltd., Deportment of Gold, Silver and Copper in Caspiche Flotation Tails. Report Nr 11/39,
October 2011.
Canadian Institute of Mining, Metallurgy and Petroleum (CIM), 2003, Estimation of Mineral
Resources and Mineral Reserves, Best Practice Guidelines: Canadian Institute of Mining, Metallurgy
and Petroleum, November 23, 2003.
Canadian Institute of Mining, Metallurgy and Petroleum (CIM), 2003, Estimation of Mineral
Resources and Mineral Reserves, Best Practice Guidelines: Canadian Institute of Mining, Metallurgy
and Petroleum, November 23, 2003
Canadian Institute of Mining, Metallurgy and Petroleum (CIM), 2005, CIM Standards for Mineral
Resources and Mineral Reserves, Definitions and Guidelines: Canadian Institute of Mining,
Metallurgy and Petroleum, December 2005.
G & T Metallurgical Services Ltd., 2009a, Preliminary Assessment of the Caspiche Deposit,
reference KM2311, unpublished report prepared for Exeter, March 2009.
G & T Metallurgical Services Ltd., 2009b, Further Process Development of the Caspiche Deposit,
reference KM2403, unpublished report prepared for Exeter, September 2009.
G & T Metallurgical Services Ltd., 2009c, Further Metallurgical Assessment of the Caspiche Deposit,
reference KM2487, unpublished report prepared for Exeter, December 2009.
G & T Metallurgical Services Ltd., 2010, Advanced Metallurgical Assessment of Ore Type
Composites from the Caspiche Deposit, reference KM2555, unpublished report prepared for Exeter,
June 2010.
Galaz, L. J., 2008, Descripción de Equipo, GPS O Navegadores Manuales, y Coordenadas IGM
versus DIFROL, unpublished report prepared for Exeter, November, 2008.
Gonzalez, 2009, Caspiche Water and Power Benchmark Study, April 19, 2009, unpublished report
prepared for Exeter Resource Corporation.
Hatch, Caspiche Water and Power Supply Benchmark Study. Report Nr H331616-0000-90-236-
0001, April 2009.
Inversiones IAL Ambiental Limitada, Proyecto Studio de Linea Base, Proyecto Minero Caspiche,
August 2010.
Inversiones IAL Ambiental Limitada, Environmental Considerations, EBS Caspiche Mining Project,
June 2011.
Karzulovic & Asoc. Ltda, (AKL), Evaluación Geotécnica, Etapa Conceptual, Proyecto Caspiche,
September 2010.
Knight Piésold Consulting, Tailings Dam Wall Engineered Face Pre-feasibility Design (Ref. No.
SA202-00171/07), August 2011.

January, 2012
Caspiche Project
Copiapó, Chile
Study
Marinho, R., 2011, Caspiche Project, Caspiche Mineral Resource Estimate Update, October 2011,
M40011, Prepared by AMEC for Exeter Resource Corporation, October 2011.
McClelland Laboratories Inc., 2009, Report on Heap Leach Cyanidation Testing – Caspiche Oxide
Ore Drill Core Composites, MLI Job No 3315, unpublished report prepared for Exeter, May 2009.
McClelland Laboratories Inc., Bottle Roll Tests - Caspiche MacNeill Zone Drill Cuttings Composites.
MLI No. 3420, April 2010.
McClelland Laboratories Inc., Heap Leach Cyanidation Testing – Caspiche Drill Core Composites.
MLI Job No. 3423, March 2011.
McClelland Laboratories, Report on Heap Leaching Cyanidation Testing – Caspiche Drill Core
Composites, March 2, 2011.
McClelland Laboratories Inc., Heap Leach, Milling/Cyanidation and Flotation Testing – MacNeill
Zone Drill Core Composites. MLI Job No. 3495, September 2011.
Mir, P., 2011, Sociedad Contractual Minera Eton Chile, 30 September 2011, unpublished letter to
Exeter Resource Corporation from Bofill Mir Abogados.
NCL Ingeniería y Construcción S.A., Caspiche Gold Project, IPCC Scoping Study, June 2011
Outotec Germany, Partial Roasting of Caspiche Cu-Concentrate (Removing of As and Sb). Report
Nr 11/PNV/09, March 2011.
Perkins, J., 2009, Exeter 2008 Metallurgical Testing, unpublished report prepared for Exeter
Resource Corporation.
Richard H. Sillitoe, Geology and Potential of the Caspiche Porphyry Copper-Gold Prospect, Northern
Chile, June 2008.
Richard H. Sillitoe, Updated Geological Model of the Caspiche Porphyry Gold-Copper Prospect,
Northern Chile, May 2009.
Richard H. Sillitoe, Geological Model of the Caspiche Porphyry Copper-Gold Prospect, Northern
Chile, February 2009.
Richard H. Sillitoe, Some New Geological Features and Peripheral Potential, Caspiche Porphyry
Gold-Copper Deposit, Northern Chile, January 2010.
Richard H. Sillitoe, Some New Geological Features of the Caspiche Porphyry Gold-Copper Deposit,
Northern Chile, July 2010.
Sandvik Mining and Construction (SMC); Caspiche Project, Pre - feasibility Study, October 2011.
Selmar International Services Ltda in Conjunction With Neil S. Seldon & Associates Ltd, Marketing
Assumptions for the Pre-feasibility Study for the Caspiche Project in Northern Chile, August 2011.

January, 2012
Caspiche Project
Copiapó, Chile
Study
SGA Limitada, 2007, Declaración de Impacto Ambiental, Proyecto Exploraciones Caspiche Central
de Sociedad Contractual Minera Eton Chile, unpublished report prepared for Exeter Resource
Corporation, 31 August 2007.
SGA Limitada, 2008, Declaración de Impacto Ambiental, Proyecto Ampliación Caspiche Central de
Sociedad Contractual Minera Eton Chile, unpublished report prepared for Exeter Resource
Corporation, 12 July 2008.
SGS Canada Inc., An investigation into Flotation Evaluation of Two Test Composites from the
Caspiche Project, reference 12403-001, unpublished report prepared for Exeter, July 2010.
SGS Canada, A Pilot Plant Test Program on Material from the Caspiche Project. Project 12403-003,
February 2011.
SGS Canada, Gold Extraction and Recovery of Copper and Cyanide From Leach Products From the
Caspiche Pilot Plant Project. Project 12403-004, July 2011.
SGS Chile, Bond Abrasion Tests on three Mineral Samples. Final Report Project OL-4557 (in
Spanish), June 2011.
SNC-Lavalin Australia, Caspiche Concentrate Treatment Conceptual Study. Document Nr 138510-

0000-30RF-0002, January 2010.
Technip USA, Inc., Cost Estimate Copper Bearing Concentrate Roasting Plant and Sulphuric Acid
Plant, June 2011.
Tolman, J.T. and Perkins, J., 2010, Caspiche Property, Region III, Chile NI 43-101 Technical Report,
Prepared for Exeter Resource Corporation, 13 September 2010.
Tolman, J., Van Kerkvoort, G., and Perkins, J., 2008, Caspiche Project, February 9, 2009, Technical
Report, Region III, Chile, Prepared for Exeter Resource Corporation, 9 February 2009.
Van Kerkvoort, G., Delendatti, G.L.A., and Perkins, J., 2008, Technical Report & Proposed
Exploration for Caspiche Project, Region III, Chile, Prepared for Exeter Resource Corporation, 26
April 2008.
Vila, T., and Sillitoe, R., 1991 Gold Rich Porphyry Systems in the Maricunga Belt, Northern Chile,
Journal of Economic Geology, Vol. 86, pp. 1238-1260.
Wakefield, T. W., and Marinho, R., 2009a, Caspiche Property, Region III, Chile, NI 43-101 Technical
Report, Prepared for Exeter Resource Corporation, 27 March 2009.
Wakefield, T. W., and Marinho, R., 2009b, Caspiche Property, Region III, Chile, NI 43-101 Technical
Report, Prepared for Exeter Resource Corporation, 14 September 2009, Revised Date: 19 October
2009.
Wakefield, T. W., and Marinho, R., 2010, Caspiche Property, Region III, Chile, NI 43-101 Technical
Report, Prepared for Exeter Resource Corporation, 12 March 2010.

January, 2012

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Copiapó, Chile

NI 43-101 Technical Report

I, Graham Holmes do hereby certify that:

Dated this at Toronto on January 16th, 2012

Signed and Sealed

I, Alex Duggan do hereby certify that:

Dated this at Toronto Canada on January 16th, 2012

Signed and Sealed

I, Carlos Guzmán do hereby certify that:

Dated this at Toronto on January 16th, 2012

David Ted Coupland

I, David (Ted) Coupland do hereby certify that:

Dated this 16th Day of January 2012

I, John Wells do hereby certify that:

Dated this on January 16th, 2012

Louis Nguyen, Manager of Engineering, BSc EE, ME, P.Eng.

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Dated this at Toronto Canada on January 16th, 2012

Signed and Sealed

Technical Terms and Abbreviations

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CIF Cost, Insurance and Freight

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EMABLOS Empresa Minera Mantos Blancos S.A

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IRR Internal Rate of Return

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NAV Net Asset Value

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RCu Projected Copper Recovery

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VOLCBX Volcanic Breccia

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Table of Contents Page

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12.1 MINERAL RESOURCE DATABASE AUDITS ...............................................................123

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18.1 SUPER PIT MINING OPTION...................................................................................292

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List of Tables Page

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Table 13.5: Detailed Product Assays ..........................................................................135

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Table 15.15: Oxide/MacNeill Pit – Contained Ore Tonnes and Grade by

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Table 16.27: Hybrid Option – LHD Productivities ..........................................................263

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List of Figures Page

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Figure 14.9: Caspiche 8 m Composites by Alteration – Log-Prob Plot – g/t Ag

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