NI 43-101 TECHNICAL REPORT - BRAEVAL - Mining Corporation

NI 43-101 TECHNICAL REPORT 

For the 

Huancavelica Lithocaps Project, 

Department of Huancavelica, 

Peru 

For 

Braeval Mining Corporation 

15 York Street, Suite 410, Toronto, Ontario, M5H 3S5, Canada 

By 

STEWART D. REDWOOD 

BSc (Hons), PhD, FIMMM, FGS 

Consulting Geologist 

Effective date 

14 January 2013 

Signature date 


P.O. Box 0832-1784, World Trade Center, Panama, Republic of Panama. 

Tel: +507 392 5550. Email: mail@sredwood.com. Website: www.sredwood.com.

Braeval Mining Corporation S. D. Redwood 

Huancavelica Lithocaps Project, Peru, NI 43-101 Technical Report 14 January 2013 

DATE AND SIGNATURE PAGE 

The effective date of this technical report, titled “NI 43-101 Technical Report for the 

Huancavelica Lithocaps Gold Project, Provinces of Huancavelica and Castrovirreyna, 

Department of Huancavelica, Peru” is 14 January 2013. 

“Stewart D. Redwood” 

Stewart D. Redwood, BSC (Hons), PhD, FIMMM, FGS 


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TABLE OF CONTENTS 

DATE AND SIGNATURE PAGE ..............................................................................................2 

TABLE OF CONTENTS ............................................................................................................3 

List of Tables ..........................................................................................................................5 

List of Figures .........................................................................................................................6 

1 SUMMARY ........................................................................................................................9 

1.1 Introduction .................................................................................................................9 

1.2 Property Location ........................................................................................................9 

1.3 Property Description ....................................................................................................9 

1.4 Accessibility, Climate, Local Resources, Infrastructure and Physiography ................. 10 

1.5 History....................................................................................................................... 10 

1.6 Geological Setting and Mineralization ....................................................................... 11 

1.7 Deposit Types ............................................................................................................ 12 

1.8 Exploration ................................................................................................................ 12 

1.9 Drilling ...................................................................................................................... 13 

1.10 Sample Preparation, Analysis and Security ................................................................ 13 

1.11 Data Verification ....................................................................................................... 14 

1.12 Mineral Processing and Metallurgical Testing ............................................................ 14 

1.13 Mineral Resource Estimates ....................................................................................... 14 

1.14 Adjacent Properties .................................................................................................... 15 

1.15 Other Relevant Data and Information ......................................................................... 15 

1.16 Interpretation and Conclusions ................................................................................... 16 

1.17 Recommendations ..................................................................................................... 17 

2 INTRODUCTION ............................................................................................................. 20 

2.1 Purpose of Report ...................................................................................................... 20 

2.2 Terms of Reference.................................................................................................... 20 

2.3 Sources of Information .............................................................................................. 20 

2.4 Property Inspection .................................................................................................... 20 

2.5 Abbreviations ............................................................................................................ 21 

3 RELIANCE ON OTHER EXPERTS ................................................................................. 23 

4 PROPERTY DESCRIPTION AND LOCATION .............................................................. 24 

4.1 Property Location ...................................................................................................... 24 

4.2 Property Description .................................................................................................. 26 

4.2.1 Mining Concessions ............................................................................................... 26 

4.2.2 Legal Framework ................................................................................................... 31 

4.2.3 Royalties & Taxes .................................................................................................. 34 

4.2.4 Environmental Permits and Liabilities .................................................................... 35 

4.2.5 Legal Access and Surface Rights ........................................................................... 36 

4.2.6 Water Rights .......................................................................................................... 36 

4.2.7 Other ..................................................................................................................... 37 

5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRA-STRUCTURE AND 

PHYSIOGRAPHY .................................................................................................................... 38 

5.1 Accessibility .............................................................................................................. 38 

5.2 Climate ...................................................................................................................... 40 

5.3 Local Resources and Infrastructure ............................................................................ 41 

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5.4 Physiography ............................................................................................................. 42 

6 HISTORY ......................................................................................................................... 44 

7 GEOLOGICAL SETTING AND MINERALIZATION ..................................................... 46 

7.1 Regional Geology ...................................................................................................... 46 

7.2 Project Geology and Mineralization ........................................................................... 47 

7.2.1 Arcopunco Project ................................................................................................. 47 

7.2.2 Terciopelo Project .................................................................................................. 51 

7.2.3 Retazos .................................................................................................................. 56 

8 DEPOSIT TYPES ............................................................................................................. 58 

9 EXPLORATION ............................................................................................................... 60 

9.1 Arcopunco Project ..................................................................................................... 60 

9.2 Terciopelo Project...................................................................................................... 64 

9.3 Retazos Project .......................................................................................................... 67 

10 DRILLING .................................................................................................................... 68 

10.1 Arcopunco Project ..................................................................................................... 68 

10.2 Terciopelo Project...................................................................................................... 76 

11 SAMPLE PREPARATION, ANALYSIS AND SECURITY ......................................... 85 

11.1 Arcopunco (Buenaventura) ........................................................................................ 85 

11.2 Terciopelo (Buenaventura)......................................................................................... 85 

11.2.1 QA-QC .............................................................................................................. 87 

11.3 Braeval Rock and Core Check Samples ..................................................................... 91 

11.3.1 QA-QC .............................................................................................................. 93 

11.4 Conclusions ............................................................................................................. 104 

12 DATA VERIFICATION ............................................................................................. 106 

13 MINERAL PROCESSING AND METALLURGICAL TESTING .............................. 110 

14 MINERAL RESOURCE ESTIMATES ....................................................................... 110 

15 MINERAL RESERVE ESTIMATES .......................................................................... 110 

16 MINING METHODS .................................................................................................. 110 

17 RECOVERY METHODS ............................................................................................ 110 

18 PROJECT INFRASTRUCTURE ................................................................................. 110 

19 MARKET STUDIES AND CONTRACTS .................................................................. 110 

20 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY 

IMPACT ................................................................................................................................. 110 

21 CAPITAL AND OPERATING COSTS ....................................................................... 111 

22 ECONOMIC ANALYSIS ........................................................................................... 111 

23 ADJACENT PROPERTIES ........................................................................................ 111 

24 OTHER RELEVANT DATA AND INFORMATION ................................................. 112 

25 INTERPRETATION AND CONCLUSIONS .............................................................. 113 

26 RECOMMENDATIONS ............................................................................................. 115 

27 REFERENCES ............................................................................................................ 118 

28 CERTIFICATE OF AUTHOR .................................................................................... 121 

ANNEX 1: CERTIFICATE OF ANALYSIS OF CHECK SAMPLES .................................... 122 

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List of Tables 

Table 1.1 Estimated budget to carry out Stage 1 exploration program at the Huancavelica 

Lithocaps Project. .............................................................................................................. 18 

Table 1.2 Estimated budget to carry out Stage 2 exploration program at Huancavelica Lithocaps 

Project. .............................................................................................................................. 18 

Table 2.1 List of abbreviations ................................................................................................. 22 

Table 4.1 List of mining concessions that comprise the Arcopunco Project, part of the 

Huancavelica Lithocaps Project. ........................................................................................ 28 

Table 4.2 List of mining concessions that comprise the Terciopelo Project, part of the 

Huancavelica Lithocaps Project. ........................................................................................ 29 

Table 4.3 List of mining concessions that comprise the Retazos Project, part of the Huancavelica 

Lithocaps Project. .............................................................................................................. 31 

Table 5.1 Road access from Lima to Huancavelica via Pisco. .................................................... 38 

Table 5.2 Road access from Lima to Huancavelica via Huancayo.............................................. 38 

Table 5.3 Road access from Ayacucho to Huancavelica. ........................................................... 38 

Table 5.4 Road access from Huancavelica to the Arcopunco Project. ........................................ 39 

Table 5.5 Access from Huancavelica to the west side of the Terciopelo Project. ........................ 39 

Table 5.6 Access from Huancavelica to the east side of the Terciopelo Project. ......................... 39 

Table 10.1 Diamond drill holes at Arcopunco project by Buenaventura in 1997-98. .................. 68 

Table 10.2 Significant intersections in Arcopunco holes drilled by Buenaventura, 1997-78. ...... 69 

Table 10.3 Diamond drill holes drilled at Terciopelo Project by Buenaventura, 2009-10. .......... 77 

Table 10.4 Significant intervals in Terciopelo drill holes. .......................................................... 78 

Table 12.1 Sample description and results of check sampling for select elements at the 

Huancavelica Lithocaps Project. ...................................................................................... 109 

Table 12.2 Comparison of field duplicate sample grades with original sample grades for select 

elements. ......................................................................................................................... 109 

Table 26.1 Estimated budget to carry out Stage 1 exploration program at the Huancavelica 

Lithocaps Project. ............................................................................................................ 116 

Table 26.2 Estimated budget to carry out Stage 2 exploration program at Huancavelica 

Lithocaps Project. ............................................................................................................ 116 

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List of Figures 

Figure 4.1 Location map of Huancavelica Lithocaps Project, Department of Huancavelica, Peru 

.......................................................................................................................................... 25 

Figure 4.2 Plan of mining concessions at the Huancavelica Lithocaps Project. ......................... 27 

Figure 5.1 Map showing access to the Huancavelica Lithocaps Project. .................................... 40 

Figure 5.2 View of the physiography of the Arcopunco Project, looking north. ......................... 43 

Figure 5.3 View of physiography of the Terciopelo Project, looking north east. ........................ 43 

Figure 7.1 The geological setting of the Huancavelica Lithocaps Project with Braeval 

concessions. ...................................................................................................................... 47 

Figure 7.2 Geology and alteration map of Arcopunco. ............................................................... 48 

Figure 7.3 Patchy texture of fine grained silica with patches of pyrophyllite, kaolinite and/or 

dickite. .............................................................................................................................. 49 

Figure 7.4 Silicified breccia with pyrite cutting patchy texture. ................................................. 49 

Figure 7.5 Wormy texture with orpiment in fractures. ............................................................... 50 

Figure 7.6 Hydrothermal breccia with silica clasts and matrix of vuggy, creamy silica infilled 

with orpiment. ................................................................................................................... 50 

Figure 7.7 Banded quartz veinlets with residual quartz alteration (vuggy silica). ....................... 51 

Figure 7.8 Breccia with silicified clasts with residual (vuggy) silica, and vuggy matrix with 

alunite. .............................................................................................................................. 53 

Figure 7.9 Breccia with silicified clasts and quartz matrix, both with residual quartz (vuggy 

silica) texture. .................................................................................................................... 54 

Figure 7.10 Black, sulfide-rich andesite breccia, with open space hydrothermal breccia partly 

infilled by white silica, sulfur and orpiment. ...................................................................... 54 

Figure 7.11 Patchy texture advanced argillic alteration cut by pyrite veinlets............................. 55 

Figure 7.12 Banded quartz veinlets surrounded by wormy texture advanced argillic alteration. . 55 

Figure 7.13 A and B type quartz veinlets with pyrite cut by a late gypsum veinlet. Wall rock 

sericite alteration with relic of biotite alteration. ................................................................ 55 

Figure 7.14 Quartz B veinlets with potassium feldspar and biotite alteration. ............................ 56 

Figure 7.15 Target areas in Retazos Project. .............................................................................. 57 

Figure 8.1 Porphyry system deposit model of Sillitoe (2010) showing interpreted position of the 

Arcopunco and Terciopelo projects in the deep part of the lithocap overlying concealed 

porphyry systems............................................................................................................... 59 

Figure 9.1 Rock geochemistry map for Au at Arcopunco. ......................................................... 61 

Figure 9.2 Rock geochemistry map for Cu at Arcopunco. .......................................................... 61 

Figure 9.3 Rock geochemistry map for Mo at Arcopunco. ......................................................... 62 

Figure 9.4 Rock geochemistry map for Ag at Arcopunco. ......................................................... 62 

Figure 9.5 Rock geochemistry map for Pb at Arcopunco. .......................................................... 63 

Figure 9.6 Rock geochemistry map for Zn at Arcopunco. .......................................................... 63 

Figure 9.7 Plot of rock channel geochemistry for Au at Terciopelo............................................ 65 

Figure 9.8 Plot of rock chip geochemistry for Au at Terciopelo. ................................................ 65 

Figure 9.9 Plot of soil geochemistry for Au at Terciopelo. ......................................................... 66 

Figure 9.10 Plot of rock channel geochemistry for Cu at Terciopelo. ......................................... 66 

Figure 10.1 Map of Buenaventura drill hole locations and alteration at Arcopunco. ................... 70 

Figure 10.2 The Arcopunco drill core is stored in a locked office at the nearby Recuperada Mine 

owned by Buenaventura. ................................................................................................... 71 

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Figure 10.3 The Arcopunco drill core is stored in corrugated plastic core boxes in a locked office 

at the nearby Recuperada Mine. ......................................................................................... 71 

Figure 10.4 Lithology logged in drill holes and interpretation of Arcopunco section B-B1. ....... 72 

Figure 10.5 Alteration logged in drill holes and interpretation of Arcopunco section B-B1. ....... 73 

Figure 10.6 Gold grades of drill holes in Arcopunco section B-B1. ........................................... 74 

Figure 10.7 Copper grades of drill holes in Arcopunco section B-B1. ........................................ 75 

Figure 10.8 Molybdenum grades of drill holes in Arcopunco section B-B1. .............................. 76 

Figure 10.9 Location of drill holes at Terciopelo. ...................................................................... 77 

Figure 10.10 The Terciopelo drill core is stored at a commercial, multi-client, core and sample 

storage facility at Independencia, north Lima. .................................................................... 79 

Figure 10.11 Cross section of alteration for hole TER09-01. ..................................................... 80 

Figure 10.12 Cross section of lithology for hole TER09-01. ...................................................... 81 

Figure 10.13 Cross section of Au assays for TER09-01. ............................................................ 82 

Figure 10.14 Cross section of Mo analyses for TER09-01. ........................................................ 83 

Figure 10.15 Cross section of alteration for holes TER10-07 and TER10-08. ............................ 84 

Figure 10.16 Cross section of Au assays for holes TER10-07 and TER10-08. ........................... 84 

Figure 11.1 Performance of CSRM G305-1 for Au for Terciopelo drill samples assayed by 

Buenaventura. ................................................................................................................... 88 

Figure 11.2 Performance of CSRM G306-1 for Au for Terciopelo drill samples assayed by 

Buenaventura. ................................................................................................................... 88 

Figure 11.3 Performance of blank for Au for Terciopelo drilling. .............................................. 89 

Figure 11.4 Performance of blank for Cu for Terciopelo drilling. .............................................. 89 

Figure 11.5 Performance of blank for Mo for Terciopelo drilling. ............................................. 90 

Figure 11.6 Performance of core duplicates for Au at Terciopelo. ............................................. 90 

Figure 11.7 Performance of core duplicates for Cu for Terciopelo. ............................................ 91 

Figure 11.8 Performance of core duplicates for Mo for Terciopelo. ........................................... 91 

Figure 11.9 Performance of CSRM Oreas 152-a for Au for core check samples (n=16). ............ 94 

Figure 11.10 Performance of CSRM Oreas 152-a for Cu for core check samples (n=16). .......... 94 

Figure 11.11 Performance of CSRM Oreas 152-a for Mo for core check samples (n=16). ......... 95 

Figure 11.12 Performance of Oreas 65-a for Au for Retazos rock samples................................. 95 

Figure 11.13 Performance of Oreas 65-a for Ag for Retazos rock samples................................. 96 

Figure 11.14 Performance of Oreas 65-a for Cu for Retazos rock samples. ................................ 96 

Figure 11.15 Performance of CSRM OxK49 for Au for Retazos rock samples. ......................... 97 

Figure 11.16 Performance of coarse blank Target for Cu. .......................................................... 98 

Figure 11.17 Performance of coarse blank Target for Mo. ......................................................... 98 

Figure 11.18 Performance of coarse Target blank for Au for Retazos rock samples. .................. 99 

Figure 11.19 Performance of coarse Target blank for Cu for Retazos rock samples. .................. 99 

Figure 11.20 Performance of coarse Target blank for Mo for Retazos rock samples. ............... 100 

Figure 11.21 Scatter plot of Arcopunco full length core duplicates for gold. ............................ 101 

Figure 11.22 Scatter plot of Arcopunco full length core duplicates for copper. ........................ 101 

Figure 11.23 Scatter plot of Arcopunco full length core duplicates for molybdenum. .............. 102 

Figure 11.24 Scatter plot of original half-core samples (average length 1.7 m) against check 

quarter core samples (length 30 cm) for gold. .................................................................. 103 


quarter core samples (length 30 cm) for copper................................................................ 103 

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quarter core samples (length 30 cm) for molybdenum. ..................................................... 104 

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1 SUMMARY 

1.1 Introduction 

This report was prepared by Dr. Stewart D. Redwood at the request of Braeval Mining 

Corporation (Braeval), a company registered in Canada. The terms of reference were to produce 

a Technical Report as defined in Canadian Securities Administrators’ National Instrument 43- 

101, and in compliance with Form 43-101F1 (Technical Report) and Companion Policy 43- 

101CP for the Huancavelica Lithocaps Project in Peru. The effective date of the report is 14 

January 2013. 

1.2 Property Location 

The Huancavelica Lithocaps Project is located in the Provinces of Huancavelica and 

Castrovirreyna, Department of Huancavelica, Republic of Peru. The latitude and longitude for 

the Arcopunco Project is 13° 2’ 18” S, 75° 2’ 19” W, and the Terciopelo Project is at 12° 56’ 

4”S, 75° 2’ 26”W. Altitudes in the project are between 3,600 m and 5,298 m above mean sea 

level. Arcopunco is 245 km south east of Lima, and Terciopelo is 240 km south east of Lima. 

1.3 Property Description 

Braeval owns or has the right to acquire 100% of 35 mining concessions and applications with a 

total area of 23,290 ha that comprise the Huancavelica Lithocaps Project. These concessions are 

divided into three groups: the Arcopunco Project which is under option, the Terciopelo Project 

which is under a different option, and the 100% owned Retazos Project. 

The Arcopunco Project comprises 3 mining concessions with a total area of 595 ha owned by 

SMRL Trabante de Huancavelica and by Mr. Juan Said Saleh Vergara and his relatives. Braeval 

can acquire 100% of the 3 concessions for staged payments totaling US$5,360,000. The 

agreement was signed on10 August 2012. There is a first option to acquire 80% for staged 

payments of US$2,360,000 over 36 months. There is a second option to acquire the remaining 

20% for 100% in total for a onetime payment of US$3,000,000 plus a net smelter return (NSR) 

royalty of 1.5%. The royalty can be purchased for US$15 million. 

The Terciopelo Project is a mining assignment and option agreement between Braeval and 

Compañía De Exploraciones, Desarrollo e Inversiones Mineras S.A.C., Peru (CEDEMIN), a 

subsidiary of Compañía de Minas Buenaventura S.A.A. (Buenaventura). The Terciopelo Project 

comprises 5 mining concessions with a total area of 4,200 ha. The agreement with CEDIMIN 

was signed on 12 September 2012. The terms to acquire 100% of the concessions are to carry out 

9



a diamond drill program of 5,000 m within three years of signing, of which 1,000 m should be 

carried out within the first 18 months. In order to exercise the transfer option, Braeval must make 

a payment of US$25,000 to CEDIMIN within 60 days of completion of the drilling program. In 

addition, a NSR royalty of 1.5% is payable to CEDIMIN. Braeval may buy the royalty for 

US$5,000,000. On completion of the earn-in, CEDIMIN will have a one-year Return Option 

whereby it may re-acquire 70% of the project by paying 2.5 times the value of the qualified 

expenses incurred by Braeval, and the NSR shall be rendered null and void. 

The Retazos Project comprises 16,395.4241 ha in 26 concessions and applications around the 

Arcopunco and Terciopelo Projects that were staked by Braeval in 2011. 

There are no environmental liabilities, and no other known significant factors and risks that may 

affect access, title or the right or ability to perform work on the property. 

1.4 Accessibility, Climate, Local Resources, Infrastructure and 

Physiography 

There are three routes to Huancavelica from Lima. The first route is by the Pan-American South 

Highway via Pisco, a total of 514 km that takes 8 hours 30 minutes. The second is by the Central 

Highway from Lima to Huancayo and Huancavelica for a total of 457 km in 10 hours. There is 

also a railway along this route. The third route is by commercial flight from Lima to Ayacucho 

(30 minutes), then drive to Huancavelica, a distance of 235 km that takes 4 hours. From 

Huancavelica to the Arcopunco Project is 61 km (1 hour 50 minutes) by returning along the 

Ayacucho road to the Chonta Pass. The Terciopelo Project can be accessed from the west side 

via Astobamba (38 km), and from the east side via Carharazu (21 km), in both cases followed by 

2.5 to 4 km walk. The climate is alpine and is cold and semi-arid. The nearest major town is the 

city of Huancavelica (population 447,000). 

1.5 History 

The Huancavelica Lithocaps Project is part of the historical Huachocolpa mining district which 

has been mined since Spanish colonial times in the 16 th century for silver, lead, zinc and copper. 

The Arcopunco Project was explored by Buenaventura in 1997-98 which carried out programs of 

rock sampling, mapping and diamond drilling of 3,581 m in 14 holes. Braeval optioned the 

Arcopunco project in 2012 and has carried out rock sampling, and relogging and check sampling 

of drill core. The Terciopelo Project was explored by Buenaventura in 2009-10 which included 

geological mapping, rock and soil sampling, ground geophysics (magnetic and induced 

polarization surveys), and diamond drilling of 2,883 m in 10 holes to test porphyry and high 

sulfidation epithermal targets. Braeval signed an option to acquire the project in September 2012 

10



and have carried out no exploration yet. At Retazos, Braeval carried out a program of 

reconnaissance exploration in 2012 including rock sampling and geological mapping. 

1.6 Geological Setting and Mineralization 

The regional geology comprises folded Paleozoic to Mesozoic sedimentary rocks overlain 

unconformably by Paleogene to Neogene volcanic rocks. The Arcopunco and Terciopelo 

Projects are hosted by eroded, Late Miocene to Pliocene volcanic centers. The main structures 

are the NW-trending Chontas Fault on the west side, and the N-S trending Jatumpata- 

Huachocolpa Fault on the east side. Mineralization is related to secondary structures related to 

left lateral strike slip movement on the Chontas Fault. 

The Arcopunco Project is hosted by volcanic rocks of the Miocene Huichinga and 

Castrovirreyna Formations, with minor stocks and dikes. There is extensive advanced argillic 

and silicic alteration forming a lithocap. Mineralization on surface is orpiment, realgar, sulfur 

and pyrite. There is patchy to wormy texture advanced argillic alteration underlain by porphyry 

quartz veinlets. These also occur in two other localities further east, indicating the possibility of 

up to three porphyry centers. The drill holes at Arcopunco are shallow angle holes into the 

silicified ridge-top to test the potential for oxidized high sulfidation epithermal gold 

mineralization. The holes intersect patchy to wormy texture advanced argillic alteration, cut by 

zones of silicification and hydrothermal brecciation with pyrite or marcasite, orpiment and 

sulfur. Low grade gold mineralization is associated with anomalous As, Mo and, in places, Cu. 

The outcropping alteration and mineralization at Arcopunco is interpreted to be the deep part of a 

lithocap with high sulfidation gold mineralization, which overprints the top part of a porphyry 

system. 

Mineralization at Terciopelo is hosted by an eroded stratovolcano of the Pliocene Astobamba 

Formation with pervasive and structurally controlled argillic, advanced argillic and silicic 

alteration forming a lithocap. Drilling on the north side of the Terciopelo ridge tested high 

sulfidation gold epithermal mineralization and cut andesite breccias with hydrothermal breccias 

with silica-pyrite alteration, alunite, sulfur, orpiment and scorodite, narrow structurally 

controlled zones of residual vuggy silica alteration, and broad zones of intermediate argillic 

alteration. Drilling at lower elevations tested a porphyry target, which was intersected by one 

hole, with advanced argillic alteration with patchy and wormy texture changing downwards to 

intermediate argillic, phyllic and then potassic alteration, hosted by intrusive and volcanic rocks. 

Quartz veining related to potassic alteration is overprinted by advanced argillic alteration at 

shallow levels. Low grade gold mineralization with anomalous Cu and Mo occur in parts of the 

advanced argillic zone, but there are no significant copper, gold and molybdenum grades in the 

phyllic and potassic zones, which are pyritic with only traces of chalcopyrite. 

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The Retazos Project is hosted by both sedimentary rocks and Paleogene to Neogene volcanic 

rocks. Reconnaissance exploration has encountered polymetallic intermediate sulfidation vein, 

breccia and replacement to possible skarn styles of mineralization. 

1.7 Deposit Types 

The exploration targets in the Arcopunco and Terciopelo Projects are porphyry Cu ± Mo ± Au ± 

Ag deposits concealed beneath extensive zones of lithologically controlled advanced argillic 

alteration known as lithocaps. The lithocaps contain high sulfidation epithermal gold-silver 

mineralization. Previous exploration focused on the high sulfidation epithermal gold 

mineralization, with low grade results. The lithocaps at Arcopunco and Terciopelo are fairly 

deeply eroded to remove most of the stratovolcano morphology and expose higher temperature 

advanced argillic mineral assemblages, and patchy and wormy texture alteration. Quartz veinlets 

are present in and below the patchy texture alteration at both projects, shown in outcrop at 

Arcopunco and drill core at Terciopelo. Drilling at Terciopelo has shown that patchy texture 

alteration overlies a porphyry system with phyllic and potassic alteration, thus validating the 

exploration model. Molybdenum is anomalous in the deep lithocap of both systems, with up to 

0.037% Mo over 6.2 m at Arcopunco and 0.037% Mo over 39.4 m at Terciopelo. 

1.8 Exploration 


rock sampling, geological mapping, petrography and two programs of diamond drilling. Braeval 

carried out exploration at the Arcopunco project in 2011-12 including rock sampling, and 

relogging and check sampling of drill core. The rock geochemistry shows anomalous Au, Cu, 

Mo and Pb on Cerro Arcopunco related to the high sulfidation epithermal zone and top of 

porphyry, and highly anomalous Ag, Pb and Zn, with some Au and Cu, in veins to the east, 

interpreted as intermediate sulfidation epithermal veins peripheral to the porphyry-epithermal 

center. 

The Terciopelo Project was explored by Buenaventura in 2008-10. Detailed surface exploration 

and drilling focused on two sectors: Jacucucho in the head of the glacial valley east of Cerro 

Terciopelo, and the Andrea zone, on the north side of the Cerro Terciopelo ridge. The 

exploration included geological mapping, alteration mapping by short wave infra-red spectral 

analyses by TerraSpec spectrometer, rock and soil sampling, ground magnetic and induced 

polarization surveys, and diamond drilling. 

Braeval carried out reconnaissance exploration, prospecting and rock chip sampling at the 

Retazos Project in 2012. 

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1.9 Drilling 

The Arcopunco and Terciopelo Projects have been drilled by Buenaventura. No drilling has been 

carried out on the Retazos Project. Braeval has not carried out any drilling. 

Buenaventura carried out two programs of diamond drilling at the Arcopunco Project in 1997-98. 

Phase 1 comprised 2,159 m in 9 holes, and Phase 2 comprised 1,422 m in 5 holes, for a total of 

3,581 m in 14 holes. The best intersections were 0.53 g/t Au over 30.5 m, 0.52 g/t Au over 9.5 m, 

and 0.40 g/t Au over 62.0 m. Gold mineralization is associated with anomalous Mo, Zn, Pb, As 

and Cu. Mineralization is high sulfidation epithermal style. Braeval re-logged 10 of the 14 holes 

in 2012, including check sampling by taking core duplicates, short wave infra-red analyses of 

alteration minerals with a PIMA field spectrometer, and interpretation of cross sections. 

The Terciopelo Project was drilled by Buenaventura in 2009-10 with a total of 2,883 m in 10 

holes. Phase 1 drilled the Jacucucho porphyry target with 5 holes totaling 1,903 m. Phase 2 

tested high sulfidation epithermal gold mineralization at higher altitude in the Andrea Target 

with 5 holes for 979 m. The drilling returned grades up to 0.53 g/t Au over 12.4 m in the 

epithermal zone, and up to 81.6 m at 0.20 g/t Au, 0.06% Cu and 0.01% Mo in the deep lithocap 

over the porphyry. Copper grades are anomalous in the gold intervals in the lithocap, and in 

structures in the high sulfidation epithermal zone, with up to 0.55% Cu over 3.8 m. Molybdenum 

is strongly anomalous in the deep lithocap, with up to 0.037% Mo over 39.4 m. 

1.10 Sample Preparation, Analysis and Security 

There is no QA-QC for the Buenaventura Arcopunco data. Check sampling of the Arcopunco 

core was carried out by Braeval and shows that the original analyses are reliable. 

Buenaventura carried out programs of QA-QC for surface and core sampling at Terciopelo, 

although only the core data has been made available to Braeval. The CSRM, blanks and core 

duplicates for the core show acceptable results. However, the data is incomplete and lacks 

documentation of protocols. It is believed that this data exists and Braeval have requested it. At 

present the data supplied is insufficient to comply with CIM / NI 43-101 standards. It is 

recommended that Braeval carried out a program of check and replicate analyses of core sample 

pulps and coarse rejects in order to validate the data. 

Braeval have a written protocol manual for core sample collection and QA-QC that meets the 

best practices guidelines currently used within the industry. This includes certified standard 

reference materials (CSRM), blanks and field duplicates. The QA-QC results for the Braeval 

samples are acceptable. 

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1.11 Data Verification 

The author has verified the data used in this report by visiting the properties and revising drill 

core from Arcopunco and Terciopelo to confirm the geology and mineralization, by carrying out 

independent check sampling, and by revising the QA-QC and assay certificates. The independent 

check samples confirm the presence of anomalous amounts of gold and associated elements in 

similar amounts to the original samples at the Arcopunco and Terciopelo projects. 

The Arcopunco drill core was extensively checked with core duplicate samples by Braeval which 

show that the original analyses are reliable. 

The author concludes that: 

• Sampling, sample preparation, assaying and analyses have been carried by Braeval out in 

accordance with best current industry standard practices and are suitable to plan further 

exploration; 

• The Braeval exploration programs are well planned and executed and supply sufficient 

information to plan further exploration; 

• Braeval’s sampling, assaying and analyses includes quality assurance and quality control 

procedures. 

• Check sampling of surface samples at Arcopunco and Terciopelo, and check sampling of 

Arcopunco core samples show that the original analyses are reliable. 

It is recommended that check sampling be carried out of the Terciopelo core. 

1.12 Mineral Processing and Metallurgical Testing 

No metallurgical testing has been carried out on the Huancavelica Lithocaps Project. 

1.13 Mineral Resource Estimates 

There are no mineral resource estimates for the Huancavelica Lithocaps Project that are 

compliant with the current CIM standards and definitions required by the Canadian NI 43-101 

“Standards for Disclosure of Mining Projects”. 

14



1.14 Adjacent Properties 

The Caudalosa Chica Mine is located 7 km south east of the Arcopunco Project. It is an 

underground mine that produces concentrates of lead, zinc and silver. The owner is a private 

company that does not publish resources. 

The Recuperada Mine, owned by Buenaventura, is located 11.5 km south east of the Arcopunco 

Project. The geology comprises veins of Ag-Pb-Zn and Ag-rich veins in limestone. The proven 

and probable reserves at 31 December 2011 were 114,710 short tons (st) grading 7.79 oz/st Ag, 

5.20% Pb and 8.11% Zn (reported to United States Securities and Exchanges Commission (SEC) 

standards). 

The Pico Machay high sulfidation epithermal gold deposit is located 18 km west of the 

Arcopunco Project. It is owned by Pan American Silver Corporation. As of 31 December 2011, it 

had measured resources of 4.7 Mt grading 0.91 g/t Au containing 137,500 oz Au, indicated 

resources of 5.9 Mt grading 0.67 g/t Au containing 127,100 oz Au, and inferred resources of 23.9 

Mt grading 0.58 g/t Au containing 445,700 oz Au. 

The San Genaro mine, owned by Castrovirreyna Compañía Minera S.A., is located 20 km south 

west of the Arcopunco Project. The proven and probable reserves as of 31 December 2010 were 

3,049,307 st grading 3.67 oz/st Ag, 0.02 oz/st Au, 0.86% Pb and 1.06% Zn: these are in-house 

company reserve estimates that do not conform to NI 43-101 standards and are quoted here for 

information purposes only. 

The Julcani mine, owned by Buenaventura, is located 29 km north east of the Arcopunco Project. 

The proven and probable reserves at 31 December 2011 were 258,556 st grading 18.5 oz/st Ag, 

0.021 oz/st Au, 2.0% Pb and 0.46% Cu (reported to SEC standards). 

The resources and reserves quoted in this section have not been independently verified by the 

author. They are quoted for information purposes and are should not be taken as an indication of 

the potential of the Huancavelica Lithocaps Project. 

1.15 Other Relevant Data and Information 

There is no other relevant data or information to be reported. 

15



1.16 Interpretation and Conclusions 

The author has reviewed the Huancavelica Lithocaps Project and has verified the data used in 

this report by visiting the property and reviewing drill core to confirming the geology and 

mineralization, by taking check samples, and by review of the QA-QC. The author concludes 

that: 

• The exploration programs are well planned and executed and supply sufficient 


• Sampling, sample preparation, assaying and analyses carried out by Braeval have been 

carried out in accordance with best current industry standard practices and are suitable to 

plan further exploration; 


procedures. 

The main target of the exploration programs is for porphyry copper ± gold ± molybdenum ± 

silver mineralization concealed beneath lithocaps of advanced argillic alteration. 

At the Arcopunco Project the advanced argillic alteration overprints porphyry-type quartz 

veining and a program of deep drilling is recommended. 

At the Terciopelo Project, one drill hole intersected a porphyry system with potassic and phyllic 

alteration beneath the lithocap, and demonstrates the validity of the exploration model. The hole 

had no significant mineralization and had a very high pyrite/chalcopyrite ratio. A program of 

deep drill holes is recommended to explore for the early mineral porphyry intrusions and zones 

with higher chalcopyrite/pyrite ratios and mineralization. 

High sulfidation epithermal gold mineralization in zones of vuggy silica alteration in the 

lithocaps constitutes a second target. This was the main target tested by previous drill programs 

but there may be additional untested areas, for example in the rhyolite dome or flows at 

Terciopelo. 

The third target is polymetallic veins, vein breccias, carbonate replacement bodies and skarns 

peripheral to the lithocaps and porphyry-epithermal centers. Several such zones have been found 

in reconnaissance exploration of the Retazos Project. 

There are no known significant risks or uncertainties that could reasonably be expected to affect 

the reliability or confidence in the exploration information. The main uncertainty in future 

exploration programs is geological risk. 

16



1.17 Recommendations 

A two stage exploration programme is recommended for the Huancavelica Lithocaps Project. 

Stage 1 is surface exploration to define drill targets and Stage 2 is drilling. The Stage 2 program 

is not dependent on the results of the Stage 1 program for Arcopunco and Terciopelo, but is 

dependent on the Stage 1 program for Retazos. Environmental permitting for Stage 2 should be 

started during Stage 1. 

Stage 1 Program: 

• Arcopunco: 

o Map quartz veinlet distribution, veins, and alteration in the field to define and 

interpret the hydrothermal system. 

o Additional channel sampling required (e.g. breccia not sampled). 

o Ground magnetic survey to map magnetite-destructive advanced argillic and 

phyllic alteration, and possible magnetite associated with a gold-rich porphyry 

system. 

o Induced polarization survey to define disseminated and veinlet sulfides at depth in 

a porphyry system. 

• Terciopelo: 

o Field mapping to define the volcanic system (e.g. rhyolites and younger, postmineral 

volcanic rocks have not been mapped) and zonation of alteration. 

o Hyperspectral mapping of alteration using Aster satellite imagery to map 

alteration and zonation. 

o Additional rock sampling (such as the rhyolite dome). 

o Re-log all drill holes, especially the deep ones, to define alteration and vectors to 

the porphyry target. 

o Check sampling of pulps and rejects of the drill program. 

• Retazos: 

o The objective of the next stage is to interpret hydrothermal systems and volcanic 

systems as vectors to identify and prioritize targets. 

o Compile maps of geology, alteration and geochemistry. 



o Use high resolution Ikonos or similar satellite imagery for mapping with field 

checking. 

o Geochemical sampling of rocks and soils. 



o Deep drilling of porphyry targets, 10 holes x 700 m for 7,000 m. 

17





• Retazos: 

o Drilling of targets to be defined, 10 holes x 400 m for 4,000 m. 

The estimated costs for the Stage 1 program are US$766,000 and the estimated time to carry out 

the program is 12 months. The estimated costs are given in Table 1.1. 

Item US$ 

Geological mapping, geochemical sampling, data and image 

interpretation 

200,000 

Rock chip and soil sampling assays (500 samples) 9,000 

Check sampling Terciopelo drill holes (150 samples) 3,000 

Ground geophysical survey (magnetic, IP) and interpretation 250,000 

Satellite imagery, hyperspectral interpretation 100,000 

Administration 50,000 

Supplies and maintenance 40,000 

Transportation 20,000 

Community relations 20,000 

Security 4,000 

Contingency 10% 70,000 

Total 766,000 

Table 1.1 Estimated budget to carry out Stage 1 exploration program at the Huancavelica Lithocaps Project. 

The estimated costs for the Stage 2 exploration program are US$9,896,000 and are listed in 

Table 1.2. The estimated time to carry out the program is 16 months, including 12 months of 

drilling. The drilling programs can be done sequentially on the three project areas. 

Item US$ 

Diamond drilling (18,000 m at $300 per meter contractor cost plus 

10% Cumbrex cost plus 18% service tax.) 

6,912,000 

Assays (9,000 samples plus 10% QAQC at $45 per sample, plus 


559,000 

Geological support 500,000 




Transportation (mob-demob rigs, transport personnel, samples, core 

boxes). 

200,000 

Environmental permit and monitoring 200,000 



Total 9,896,000 

Table 1.2 Estimated budget to carry out Stage 2 exploration program at Huancavelica Lithocaps Project. 

18



The total cost of the Stage 1 and Stage 2 exploration programs is US$10,662,000 and the 

estimated time to completion is 24 months, based on carrying out Stage1 and applying for the 

environmental permit for drilling at the same time, followed by execution of the Stage 2 

program. 

It is recommended that the current QA-QC program be maintained. Specific recommendations to 

improve this are: 

• Use the new Cumbrex coarse granite blank; 

• A fine grained blank should also be used; 

• Preparation duplicates should be inserted; 

• Replicate analyses should be carried out on a regular basis. 

• Check analyses (preparation of a second pulp from the coarse reject) should also be 

carried out at a second laboratory on a regular basis. 

19



2 INTRODUCTION 

2.1 Purpose of Report 

Dr. Stewart D. Redwood, Consulting Geologist, prepared this independent Qualified Person’s 

Technical Report of the Huancavelica Project in the Department of Huancavelica, Peru for 

Braeval Mining Corporation, a company registered in Canada. Braeval’s operating company in 

Peru is its subsidiary Braeval S.A.C., a company registered in Peru. 

All technical services for Braeval in Peru are carried out through a service contract with 

Cumbres Exploraciones S.A.C. (Cumbrex), a private company registered in Peru, which is 

independent of Braeval. 

2.2 Terms of Reference 

The terms of reference were to prepare a Technical Report as defined in Canadian Securities 

Administrators’ National Instrument 43-101, Standards of Disclosure for Mineral Projects, and 

in compliance with Form 43-101F1 (Technical Report) and Companion Policy 43-101CP. 

2.3 Sources of Information 

The project has been described in a number of unpublished reports by Cumbrex and previous 

exploration companies. The author considers that he has seen the most important reports and data 

with the exception of the full QA-QC data, including protocols, for the Buenaventura Terciopelo 

Project, which has been requested. The reports that were consulted, as well as other published 

government reports and scientific papers, are listed in Section 27 “References” of this report. 

2.4 Property Inspection 

The author visited the property on 2 to 7 October 2012. This included field visits to Arcopunco 

and Terciopelo Projects, and the Astobamba and Hornopampa sectors of the Retazos Project, 

examination of drill core from Arcopunco at the Recuperada Mine, examination of drill core 

from Terciopelo at Independencia, north Lima, and travel to and from Lima. 

20



2.5 Abbreviations 

A list of the abbreviations used in the report is provided in Table 2.1. All currency units are 

stated in US dollars, unless otherwise specified. Quantities are generally expressed in the metric 

International System (SI) of units, including metric tonnes (t), kilograms (kg) and grams (g) for 

weight; kilometres (km) and meters (m) for distance; hectares (ha) for area; and grams per metric 

tonne (g/t) for gold and silver grades. Metal grades may also be reported in parts per million 

(ppm) and gold grades in parts per billion (ppb). 

Description Abbreviation 

Atomic absorption spectrophotometer AAS 

Braeval Mining Corporation Braeval 

Compañía de Minas Buenaventura S.A.A. Buenaventura 

Compañía De Exploraciones, Desarrollo e Inversiones Mineras S.A.C. CEDIMIN 

Canadian Institute of Mining, Metallurgy and Petroleum CIM 

Canadian National Instrument 43-101 NI 43-101 

Centimetre(s) cm 

Certified Standard Reference Materials CSRM 

CERTIMIN S.A CERTIMIN 

Cumbres Exploraciones S.A.C Cumbrex 

Degree(s) 

Degrees Celsius 

Consolidated Annual Declaration (Declaración Anual Consolidada) DAC 

General Mining Directorate (Dirección General de Minería) DGM 

Environmental Impact Statement (Declaración de Impacto Ambiental) DIA 

Lower limit of detection DL 

United States’ Dollar(s) US$ 

Gram(s) g 

Grams per metric tonne g/t 

Global positioning system GPS 

Greater than. Less than > , < 

Hectare(s) ha 

Inductively coupled plasma spectrometer ICP 

Inductively coupled plasma atomic emission spectrometer ICP-AES 

Inductively coupled plasma mass spectrometer ICP-MS 

National Institute of Concessions and Mining Cadaster (Instituto Nacional de 

Concesiones y Catastro Minero) 

INACC 

Geological, Mining and Metallurgical Institute (Instituto Geologico Minero 

Metalurgico) 

INGEMMET 

Induced polarization IP 

21 

o 

o C



International Organization for Standardization ISO 

Kilogram(s) kg 

Kilometre(s) km 

Square kilometre (s) km 2 

Kilovolt kV 

Meter(s) m 

MegaWatt MW 

Million tonnes Mt 

Million years Ma 

Millimetre(s) mm 

Minutes and seconds ‘ , “ 

Net smelter royalty NSR 

North, south, east, west N, S, E, W 

Troy ounces oz 

Troy ounces per short ton Oz/st 

Parts per billion ppb 

Parts per million ppm 

Percent(age) % 

Plus or minus ± 

Quality Assurance/Quality Control QA-QC 

Open stock company, Peru (sociedad anónima abierta) S.A.A. 

Limited company, Peru (sociedad anónima cerrada) S.A.C. 

United States Securities and Exchanges Commission SEC 

System for Electronic Document Analysis and Retrieval (Canadian Securities 

Administrators) 

SEDAR 

Peru Nuevos Soles S/. 

Standard deviation SD 

Système international d’unités (International System of Units) SI 

Short tons st 

Short tons per day stpd 

Tonne(s) (metric) t 

Toronto Stock Exchange TSX 

Tax Unit (Unidad Impositiva Tributaria) UIT 

Universal Transverse Mercator UTM 

Table 2.1 List of abbreviations 

22



3 RELIANCE ON OTHER EXPERTS 

The author has received information about the mining concessions from Braeval but has not 

carried out independent verification of the concessions. 

The author has received technical information from Braeval’s geologists and management and 

has done his best to verify the reliability of this information. The opinions expressed in this 

report are based on the available information and geologic interpretations as provided by 

Braeval. 

23



4 PROPERTY DESCRIPTION AND LOCATION 

4.1 Property Location 

The Huancavelica Lithocap Project is located in the Provinces of Huancavelica and 

Castrovirreyna, Department of Huancavelica, Republic of Peru (Figure 4.1). The latitude and 

longitude for the Arcopunco Project is 13° 2’ 18” S, 75° 2’ 19” W, and the Terciopelo Project is 

at 12° 56’ 4”S, 75° 2’ 26”W. Altitudes in the project are between 3,600 and 5,298 m above mean 

sea level. Arcopunco is 245 km south east of Lima, and Terciopelo is 240 km south east of Lima. 

The datum used in Peru is Provincial South America 1956 (PSAD 56). 

24



Figure 4.1 Location map of Huancavelica Lithocaps Project, Department of Huancavelica, Peru 

Map prepared by Braeval, October 2012. 

25



4.2 Property Description 

4.2.1 Mining Concessions 

Braeval owns or has the right to acquire 100% of 35 mining concessions and applications with a 

total area of 23,290 ha that comprise the Huancavelica Lithocaps Project. These concessions are 

divided into three groups, the Arcopunco Project which is under option, the Terciopelo Project 

under option, and the 100% owned Retazos Project. The mining concessions comprising each 

project are described in the following three sections. 

The mining concessions are shown in a plan in Figure 4.2. 

26



Figure 4.2 Plan of mining concessions at the Huancavelica Lithocaps Project. 


27



4.2.1.1 Arcopunco Project 

The Arcopunco Project comprises 3 mining concessions with a total area of 595 ha. These are 

listed in Table 4.1 and are shown in a plan in Figure 4.2. Braeval has an option to acquire 100% 

of three mining concessions that comprise the Arcopunco Project. 

CODE NAME 

1 06006717X 

01 

2 06007940X 

01 

3 06003484X 

01 

AREA 

(Has.) 

LAS ANIMAS 200.0000 

LOS TRES 

MOSQUETEROS 

255.0000 

TRABANTE 140.0000 

Total 595.0000 

28 

OWNER 

JUAN SAID SALEH VERGARA AND 

OTHERS 

JUAN SAID SALEH VERGARA AND 

OTHERS 

SMRL TRABANTE DE 

HUANCAVELICA 

DATE 

STAKED 

DATE TITLE 

27/03/1979 12/07/1996 

08/09/1981 19/08/1996 

14/11/1957 31/12/1962 

Table 4.1 List of mining concessions that comprise the Arcopunco Project, part of the Huancavelica 

Lithocaps Project. 

Braeval signed two transfer option and mining assignment agreements to acquire the Arcopunco 

Project on 10 August 2012, with details as follows: 

• The first agreement is for the Trabante mining concession, signed with SMRL Trabante 

de Huancavelica (the Vendor), whose legal representative is Mr. Juan Said Saleh 

Vergara, a Peruvian natural person. 

• The second agreement is for the Las Animas and Tres Mosqueteros mining concessions, 

signed with the owners Juan Said Saleh Vergara and his relatives, Hassan Said Saleh 

Retamozo, Zarik Josua Saleh Retamozo and Faride Fatima Saleh Retamozo (altogether 

the Vendors), all Peruvian natural persons. 

Previously a letter of intent was signed with Mr. Juan Saleh on 1 February 2012 for all three 

mining concessions, with Mr. Juan Saleh acting as representative for his relatives. 

Braeval can acquire 100% of the three mining concessions for staged payments totaling 

US$5,360,000. Braeval has a first option to acquire 80% for staged payments of US$2,360,000, 

as follows: 

• US$60,000 upon signing the contract (US$40,000 for Las Animas and Tres Mosqueteros, 

and US$20,000 for Trabante). 

• US$100,000 at 12 months after signing the contract (US$66,666.66 for Las Animas and 

Tres Mosqueteros, and US$33,333.34 for Trabante). 

• US$200,000 at 24 months after signing the contract (US$133,333.32 for Las Animas and 

Tres Mosqueteros, and US$66,666.68 for Trabante).



• US$2,000,000 at 36 months after signing the contract (US$1,333,333.34 for Las Animas 

and Tres Mosqueteros, and US$666,666.66 for Trabante). 

Braeval has a second option to acquire the remaining 20% for 100% in total for payments of 

US$3,000,000 plus a net smelter return (NSR) royalty of 1.5%. The payments are as follows: 

• US$2,000,000 for Las Animas and Tres Mosqueteros; 

• US$1,000,000 for Trabante. 

The NSR royalt y is 1.5% for each agreement. Braeval can purchase the NSR for US$10,000,000 

for Las Animas and Tres Mosqueteros, and US$5,000,000 for Trabante. 

If Braeval does not exercise the second option, then each party will contribute to future 

expenditures on a pro rata basis. If the Vendors do not contribute, their 20% will be reduced and 

it become 5% or less, it will automatically be converted to a 1.5% NSR Royalty and Braeval will 

acquire 100% of the mining rights. 

4.2.1.2 Terciopelo Project 

The Terciopelo Project is a mining assignment and option agreement between Braeval and 

Compañía De Exploraciones, Desarrollo e Inversiones Mineras S.A.C., Peru (CEDEMIN) which 

belongs to Compañía de Minas Buenaventura S.A.A. (Buenaventura), a mining company 

registered in Peru that is listed on the Lima Stock Exchange and the New York Stock Exchange. 

The Terciopelo Project comprises 5 mining concessions with a total area of 4,200 ha. These are 

listed in Table 4.2 and are shown in a plan in Figure 4.2. 

CODE NAME AREA (Has.) OWNER DATE STAKED DATE TITLE 

1 010014407 TERCIOPELO 1B 1,000.0000 CEDIMIN S.A.C. 03/01/2007 29/05/2007 

2 010015007 TERCIOPELO 2B 1,000.0000 CEDIMIN S.A.C. 03/01/2007 13/07/2007 

3 010016807 TERCIOPELO 3 1,000.0000 CEDIMIN S.A.C. 03/01/2007 17/05/2007 

4 010016707 TERCIOPELO 4 1,000.0000 CEDIMIN S.A.C. 03/01/2007 09/04/2007 

5 010016507 TERCIOPELO 5 200.0000 CEDIMIN S.A.C. 03/01/2007 04/05/2007 

Total 4,200.00 

Table 4.2 List of mining concessions that comprise the Terciopelo Project, part of the Huancavelica Lithocaps 

Project. 

The agreement with CEDIMIN was signed on 12 September 2012. The terms to acquire 100% of 

the concessions are to carry out a diamond drill program of 5,000 m within three years of 

29



signing, of which 1,000 m should be carried out within the first 18 months. In order to exercise 

the transfer option, Braeval must make a payment of US$25,000 to CEDIMIN within 60 days of 

completion of the drilling program. In addition, a NSR royalty of 1.5% is payable to CEDIMIN. 

Braeval may buy the royalty for US$5,000,000. On completion of the earn-in, the concessions 

will be transferred to a new company (Newco) owned by Braeval. In addition, CEDIMIN will 

have the right for one year to execute a has a Return Option whereby it may acquire 70% of the 

shares of Newco by paying 2.5 times the value of the qualified expenses incurred by Braeval in 

the Terciopelo Project, and the NSR shall be rendered null and void. 

4.2.1.3 Retazos Project 

The Retazos Project comprises claims around the Arcopunco and Terciopelo projects that were 

staked by Braeval in 2011. The claims were originally staked in the name of Dardo de Plata 

S.A.C., Peru (Dardo de Plata, now called Oban S.A.C.), a subsidiary of Oban Exploration 

Limited, Canada, a company related to Braeval by some common officers and directors. The 

concessions were transferred from Dardo de Plata to Braeval S.A.C. by a notarized deed on 5 

January 2012, which was inscribed in the Public Records on 8 March 2012. Retazos 26 was 

staked directly by Braeval S.A.C. on 20 December 2011. The total are staked area was 

18,495.4241 ha. 

The claims staked on 1 February 2011 were made at the same time as applications by third party 

companies. In this situation, the Geological, Mining & Metallurgical Institute (INGEMMET) 

organized an auction process for disputed areas. Braeval won 867.9377 ha of claims at auction, 

and lost 2,100 ha. The result is that the Retazos project currently comprises 16,395.4241 ha in 26 

claims, which are listed in Table 4.3. 

30



CODE NAME AREA ( Ha.) OWNER DATE STAKED DATE OF TITLE 

1 10101811 RETAZOS 2 100.0000 BRAEVAL S.A.C. 01/02/2011 IN PROCESS 

2 10101711 RETAZOS 3 400.0000 BRAEVAL S.A.C. 01/02/2011 IN PROCESS 

3 010101711A RETAZOS 3A 100.0000 BRAEVAL S.A.C. 01/02/2011 IN PROCESS 

4 10099511 RETAZOS 4 1000.0000 BRAEVAL S.A.C. 01/02/2011 IN PROCESS 

5 10099411 RETAZOS 5 227.4864 BRAEVAL S.A.C. 01/02/2011 27/07/2011 

6 10099311 RETAZOS 6 144.0000 BRAEVAL S.A.C. 01/02/2011 IN PROCESS 




10 10461011 RETAZOS 10 400.0000 BRAEVAL S.A.C. 14/09/2011 25/04/2012 

















Total 

16,395.4241 

Table 4.3 List of mining concessions that comprise the Retazos Project, part of the Huancavelica Lithocaps 

Project. 

4.2.2 Legal Framework 

Mineral resources in Peru belong to the state. Mining is governed by the General Mining Law 

(Ley General de Minería) of 2 June 1992 (Supreme Decree No. 014-92- EM) with subsequent 

modifications and regulations. 

The competent mining authority is the General Mining Directorate (DGM – Dirección General 

de Minería) of the Ministry of Energy & Mines (www.minem.gob.pe). The mining law is 

31



administered by INGEMMET (Instituto Geológico Minero y Metalúrgico or the Geological, 

Mining & Metallurgical Institute). 

There is one type of Mining Concession (concesión minera) which gives the owner the right to 

explore and exploit. The application has to define whether it is for metallic or non-metallic 

minerals. The descriptions that follow in this section refer to metallic minerals. There are 

different costs for non-metallic minerals and for Small Miners which are not relevant to this 

project. 

The basic unit of the mining concession is 100 hectare squares (1 km by 1 km) based on UTM 1 

km grid squares. The maximum size of a concession is 1000 hectares (10 units) in adjoining 

blocks. The concession sides have to be defined by UTM coordinates for every corner or 1 km 

grid intersection, but no map is necessary, and no reference or marker points need to be defined 

in the field or on paper. There is no defined number of years for mining concessions as they are 

irrevocable and can be held ad infinitum if maintained, but minimum annual production must be 

achieved by Year 15 or the concession will be cancelled, or after 20 years in the case of force 

majeure. 

The procedure for making an application for a mining claim (petitorio minero) is as follows: 

1. Application is made to the Mining Concessions Office of the Public Mining Registry 

(Oficina de Concesiones Mineras del Registro Publico de Mineria) with the following 

documents: 

a. UTM coordinates to define the concession. 

b. Receipt for property tax (derecho de vigencia) for Year 1 (US$3.00 per hectare 

per year). 

c. Receipt for staking fee (derecho de petitorio) defined as 10% of the UIT (Unidad 

Impositiva Tributario or Tax Unit = S/.3650 in 2012) and is currently S/.365 

(about US$137.45). 

2. Within 7 days of application, the Mining Registry Office will advise the claimant to 

collect the notices for publication of the application. 

3. Within 30 days of receiving publication notice, the application is published once in the 

official newspaper “El Peruano” and at the same time in the relevant provincial 

newspaper which publishes legal notices. The actual pages then have to be given to the 

Registry within 60 days of publication. 

4. There is a 30 day period after publication for opposition to be made to the application by 

owners of existing properties. In the case of opposition, there is a 7 day waiting period 

followed by 30 days to investigate. The Chief of the Public Mining Registry then has 30 

days to give the resolution after receiving the decree of the Legal and Technical Offices. 

32



5. If there is no opposition, the Chief of the Office of Mining Concessions issues the 

technical and legal decrees and passes them to the Chief of the Public Mining Registry 

within 5 days for issue of the title. 

6. A list of new mining concession titles is published every month in the official gazette “El 

Peruano”. 

The requirements for maintenance of mining concessions are as follows: 

• An annual concession tax (derecho de vigencia) of US$3.00 per hectare per year, payable 

by 30 June. The payment for the first year is made at the time of the application for the 

concession. For the second and subsequent years, payment is made by calendar year. 

• Present a Consolidated Annual Declaration (DAC - Declaración Anual Consolidada) 

every year to the DGM. 

• For applications made before 2008, production must start in Year 7 or a penalty is 

payable, or there must be an annual investment from Year 6 of 10 times the penalty, 

calculated from the year the application was made. The minimum production is defined 

as one UIT per hectare per year, which is S/.3650 in 2012 (about US$1,374). The penalty 

is US$6.00 per hectare from Years 7 to 11, and US$20.00 per hectare from Year 12. The 

corresponding investments are thus US$60.00 per hectare from Years 7 to 11, and 

US$2,000.00 per hectare from Year 12. From the year 2019, new regulations will apply 

(next point). 

• A new regulation (Legislative Decrees No. 1010 of 9 May 2008, No. 1054 of 26 June 

2008 and Supreme Decree No. 054-2008-EM of 10 October 2008) was introduced in 

2008. For applications made from 2009, there are 10 years for exploration, calculated 

from the year after the title was granted. Minimum production must start by Year 11 or a 

penalty is payable. The minimum production is defined as one UIT per hectare per year, 

which is S/.3650 in 2012 (about US$1,374). The annual penalty for Years 11 to 15 is 

10% of a UIT per hectare. If minimum annual production is not achieved by Year 15 the 

concession will be cancelled by caducity, except for cases of force majeure up to a 

maximum of 5 years (Years 15 to 20). In this case after Year 20 the mining concession 

will become extinct by caducity. 

The annual concession tax is distributed 75% to the municipality or municipalities where the 

concession is located, 10% to INGEMMET, 5% to the Ministry of Energy & Mines, and 10% to 

the National Institute of Concessions and Mining Cadaster (INACC - Instituto Nacional de 

Concesiones y Catastro Minero). 

The following are grounds for extinction of mining concessions: 

33



• Rejected when an application is not complete, or is rejected by the district and provincial 

municipality. 

• Inadmissible when the coordinates are not correct or the area is outwith the minimum and 

maximum sizes allowed. 

• Nullity by staking by non-eligible persons. 

• Cancellation when an application is completely superimposed on an existing concession 

or a restricted area. 

• Abandonment by non-completion of the mining concession title. 

• Caducity by non-payment of the annual concession tax and penalties, if applicable, for 2 

consecutive years, or if minimum annual production is not achieved after 15 years, or in 

cases of force majeure, after 20 years. 

• Renouncement. All or part of a concession can be renounced, leaving a minimum of 100 

hectares. 

• Extinction needs to be registered. Extinct concession areas cannot be restaked until they 

are published in “El Peruano” as open ground. 

The mining cadastral system can be consulted on the internet at INGEMMET’s website 

(www.ingemmet.gob.pe). 

4.2.3 Royalties & Taxes 

Mining royalties (regalía minera) are defined by Law No. 28258 of 2004 (3 June 2004), 

modified by Law No. 28323 (10 August 2004), Law No. 29788 (28 September 2011) and their 

respective regulations. The mining royalty is calculated on the value of concentrates or their 

equivalent on the following scale: 

• Up to US$60 million annually: 1.0%. 

• Between US$60 million and US$120 million annually: 2.0%. 

• Above US$120 million annually: 3.0%. 

The mining royalty is distributed in the following manner: 

• 20% to the municipal authority where the mine is located; 

• 20% to the provincial government where the mine is located; 

• 40% to the departmental government where the mine is located; 

• 15% to the regional government where the mine is located; 

• 5% to the national universities in the region where the mine is located. 

A special windfall profits mining tax (Impuesto Especial a la Minería) was introduced in 2011 

(Law 29789, 23 September 2011). It has 17 operational margin brackets with payments ranging 

34



from 2.00% to 8.40%. Miners with a 0 to 10% operational margin will pay the least while those 

with an operational margin of 85% and more will be at the top end of the scale. 

A special mining levy was also introduced for companies that have stability contracts with the 

State. The levy will be applied to operating margins on a scale of 4.0 to 13.1%. 

Corporate income tax is 30% on net profits. Fifty percent of this is distributed by the National 

Government to the regional and local governments in the area of direct and indirect influence of 

the mine. This distribution of taxes is called the Mining Canon (Canon Minero) and is defined by 

Law No. 27506 (9 June 2000) and subsequent modifications. The Mining Canon is distributed as 

follows: 

• 10% to municipality where the mine is located; 

• 25% to the district and provincial municipalities where the mine is located; 

• 40% to the departmental governments where the mine is located; 

• 25% to the regional government where the mine is located. 

4.2.4 Environmental Permits and Liabilities 

The environmental authority is Ministry of the Environment (Ministerio del Medio Ambiente). 

An Environmental Impact Declaration (DIA - Declaración de Impacto Ambiental) has to be 

presented for drill programs with up to 20 platforms or disturbance of surface areas of up to 10 

ha. The environmental authority has 10 working days to make observations, and if none are 

made the study is automatically approved by positive administrative silence. 

A semi-detailed Environmental Impact Study (EIA – Estudio de Impacto Ambiental Semi- 

Detallada) has to be presented for drill programs with 21 or more platforms or a surface 

disturbance of more than 10 ha. The environmental authority has 45 working days to make 

observations, and if there are none the study is automatically approved by positive administrative 

silence. The total process including preparation of the study by a registered environmental 

consulting company takes about 6 months. 

A full Environmental Impact Study has to be presented for mine construction projects. 

The exploration work carried out on the Retazos Project by Braeval in 2012 does not require a 

DIA as it was a program of surface reconnaissance exploration and prospecting. 

A DIA was not required when Buenaventura carried out drilling at the Arcopunco Project in 

1997-98 as this was before the current environmental regulations were introduced in 2008. 

35



Buenaventura presented a Category 1 DIA Report for their exploration activities on the 

Terciopelo Project which were carried out on three mining concessions: Terciopelo 1B, 

Terciopelo 2B and Terciopelo 3, with a total area of 3,000 ha. The report was prepared by the 

environmental consulting company Consultora Ambiental VBA Environmental Consultants 

S.A.C., Peru. The report was approved automatically on 16 October 2009 with approval record 

No. 042-2009-MEM-AAM from record No.1931582. On 23 October 2009, a formal 

communication was presented for the start of exploration activities with a starting date on 27 

October 2009. The permit was granted for 23 months until July 2011. 

There are no natural parks, forest reserves or other type of natural protected areas or indigenous 

reserves within the Huancavelica Lithocaps Project. 

Braeval has no environmental liabilities at the Huancavelica Lithocaps Project. 

An archeological study of the Terciopelo Project was made on behalf of Buenaventura for the 

DIA Report in August 2009. No archeological zones were identified in the area. No 

archeological studies have been carried out for the Arcopunco and Retazos Projects. 

4.2.5 Legal Access and Surface Rights 

The granting of a mining concession in Peru specifically does not include a legal right of access, 

for which permission has to be sought from the land owners or community. The surface land in 

the Huancavelica Lithocaps Project area is owned by various communities. 

The land owners in the Terciopelo Project are from the Carhuarazu sector of the Santa Barbara 

community, Huancavelica Province and District. Buenaventura signed an agreement with the 

representatives of the Santa Barbara community on 16 July 2009 in which the community 

authorized mining exploration works, Category I, as well as land surface use. Buenaventura held 

community informative-participative workshops on 13 September 2009, at the Santa Barbara 

Church, on 3 October 2009 in the Carhuarazu sector. 

4.2.6 Water Rights 

Buenaventura presented a technical report on 10 September 2009 for permission to use water 

from the Jucucucho and Ccellumachay rivers for the Terciopelo Project to the Local Water 

Authority of Huancavelica (ALA, Autoridad Local del Agua). Authorization was received on 28 

September 2009. 

36



4.2.7 Other 

There are no other known significant factors and risks that may affect access, title or the right or 

ability to perform work on the property. 

37



5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRA- 

STRUCTURE AND PHYSIOGRAPHY 

5.1 Accessibility 

There are three routes to Huancavelica from Lima. These are shown in Figure 4.1 and Figure 5.1. 

The first route is by the Pan-American South Highway along the coast to San Clemente (Pisco), 

and from there inland by the Ayacucho road up the River Pisco valley to the junction at 

Rumichaca, and from there to Huancavelica, a total of 514 km that takes 8 hours 30 minutes 

(Table 5.1). The author travelled to the project by this route. 

From To Road Distance (km) Time (h, m) 

Lima Airport San Clemente 4 lane Pan-American 225 3h 00 m 

(Pisco) 

Highway South 

San Clemente Rumichaca 2 lane surfaced 186 3h 15m 

Rumichaca Santa Inés Single lane paved 29 0h 15m 

Santa Inés Huancavelica Single lane, graded 

(being improved) 

74 2h 0m 

Total 514 8h 30m 

Table 5.1 Road access from Lima to Huancavelica via Pisco. 

The second route is by road from Lima to Huancayo by the Central Highway, then to 

Huancavelica for a total of 457 km in 10 hours (Table 5.2). 


Lima Huancayo 2 lane surfaced 300 7h 00 m 

Huancayo Huancavelica 2 lane surfaced 157 3h 00m 

Total 457 10h 00m 

Table 5.2 Road access from Lima to Huancavelica via Huancayo. 

The third route is by commercial flight from Lima to Ayacucho (30 minutes), then drive to 

Huancavelica, a distance of 235 km that takes 4 hours (Table 5.3). The Arcopunco and 

Terciopelo Projects are on the road to Huancavelica and can be accessed en route, before 

continuing to Huancavelica for the night. 


Ayacucho Rumichaca 2 lane surfaced 132 1h 45m 

Rumichaca Santa Inés Single lane paved 29 0h 15m 

Santa Inés Huancavelica Single lane, graded 74 2h 0m 

Total 235 4h 0m 

Table 5.3 Road access from Ayacucho to Huancavelica. 

38



From Huancavelica to the Arcopunco Project is a distance of 61 km (1 hour 50 minutes) by 

returning along the Ayacucho road to the Chonta Pass, turning east on to the Caudalosa Chica 

Mine road, then north onto drill roads (Table 5.4). There is good access by drill roads to most 

parts of the project. 


Huancavelica Chonta Pass Single lane, graded 51 1h 10m 

Chonta Pass Caudalosa Mine 

Road 

Single lane, graded 2.5 0h 05m 

Turn off Caudalosa Arcopunco 

Unimproved trail 3.6 0h 15m 

Road 

viewpoint 

Viewpoint Cerro Arco Punco Drill road 4.0 0h 20m 

Total 61.1 1h 50m 

Table 5.4 Road access from Huancavelica to the Arcopunco Project. 

From Huancavelica there are two ways to the Terciopelo Project. The first is to the west side 

driving south along the Ayacucho road to the village of Astobamba (33.8 km), then drive east on 

unmarked trails across the pampa for 4.2 km until blocked by fences, then walk for 4 km (Table 

5.5). There are no drill roads or trails. The author visited the project by this route, but there was 

insufficient time to get across the ridge to the areas drilled. 

The second route is to the east side of the project and was used for the Buenaventura drill 

program. The route is south through the villages of Sacsamarca, Santa Bárbara, Yanamina to 

Cceullacocha, the continue on an unimproved trail to the community of Carhuarazu, for a total of 

21 km, followed by walking for 2.5 km (Table 5.6). Drill roads were made into the project on the 

east side from this route by Buenaventura but have been reclaimed. 


Huancavelica Astobamba Single lane, graded 33.8 0h 50m 

Astobamba Mojopata Unmarked trail 4.2 0h 45m 

Mojopata Terciopelo Walk 4.0 2h 0m 

Total 42.0 3h 35m 

Table 5.5 Access from Huancavelica to the west side of the Terciopelo Project. 


Huancavelica Carhuarazu Single lane, graded 21.0 0h 45m 

Carhuarazu Terciopelo Walk 2.5 1h 15m 

Total 42.0 2h 00m 

Table 5.6 Access from Huancavelica to the east side of the Terciopelo Project. 

The Retazos Project covers a large area and access is from the main roads and project access 

roads described here. 

39



5.2 Climate 

Figure 5.1 Map showing access to the Huancavelica Lithocaps Project. 


The climate is alpine and is cold and semi-arid. The nearest climatic data is for the city of 

Huancavelica, located in a high valley at 3,670 m altitude, which has an annual average 

temperature range of 15.4°C to 2.8°C (average maximum and minimum for period 1963-1980). 

The average annual rainfall is 830 mm (average for period 1963-1980). Above 4,000 m in the socalled 

Puna, the climate is very cold with temperatures between



5.3 Local Resources and Infrastructure 

The nearest major town to the project is the city of Huancavelica (population 447,000 in 2005), 

capital of the Department of Huancavelica, located 29 km north of Arcopunco Project (57 km by 

road), and 18 km north of Terciopelo Project (38 km by road plus 3-4 km walk). It was founded 

by Spanish settlers in 1571. The only hotel in the region is the Hotel Presidente in Huancavelica. 

For drilling programs, field camps would need to be set up on the projects. The only other small 

towns near to the project are Huachocolpa and Santa Inés. There are several villages, mining 

camps and communities in the region. 

The area is populated by Quechua-speaking indigenous people with Spanish immigrants from the 

colonial period. Land use is extensive llama and alpaca grazing in the high altitude grasslands 

and marshy valleys, with some sheep and cattle, and herding of wild vicuñas. There is minor 

subsistence agriculture in the valleys. Mining is widespread in the region for silver, lead, zinc, 

copper and gold. The Santa Barbara mercury mines near Huancavelica, discovered in 1563, were 

the most important in the New World. 

The Huancavelica Lithocaps Project is accessed by roads from the cities of Pisco, on the Pacific 

Ocean, Huancavelica and Ayacucho as described in Section 5.1 Accessibility. 

There is a railway line from Huancavelica to the city and port of El Callao, Lima which is part of 

the Central Railway of Peru. The first part is from El Callao to La Oroya and south to Huancayo, 

a distance of 346 km, operated by private company Ferrocarril Central Andino S.A. (FCCA, 

Central Andean Railway). The Huancayo to Huancavelica railway line has a distance of 128 km 

and is operated by the state-owned company Empresa Nacional de Ferrocarriles del Peru 

(ENAFER, Peruvian National Railway Company). The Huancayo to Huancavelica railway was 

recently converted to standard gauge and reopened in December 2011. 

The nearest international airport is at El Callao, Lima. The nearest airport with scheduled flights 

from Lima is at Ayacucho. There are no landing strips at Huancavelica or in the project area. 

Electricity is supplied to Huancavelica and the national grid by two 220 Kilovolt (kV) 

transmission lines from the Mantaro hydropower complex (comprising two plants: Antúnez de 

Mayolo (with 798 Megawatt (MW) generating capacity) and Restitución (210 MW) on the River 

Mantaro in the north part of the Department of Huancavelica. The transmission lines continue 

across the Andes to Pisco. From Huancavelica there is a branch transmission line (between 33 

and 66 kV) along the western side of the Huancavelica Lithocaps Project to a substation at 

Ingenio (Santa Inés) and west to the Caudalosa mine. 

41



A natural gas pipeline from the Camisea field runs south of the project across the Andes through 

Ayacucho to Pisco and Lima. A branch pipeline is planned from Ayacucho to Huancavelica and 

Tarma, which will pass through the Huancavelica Lithocaps Project. 

5.4 Physiography 

The project is located in the Andes mountains, 134 km east of the Pacific Ocean. The topography 

is mountainous with a maximum altitude of 5,298 m on Nevado Huamanrazo (adjacent to the 

Terciopelo Project), down to elevations of 3,600 m in valleys. The project area is situated on the 

north side of a regional high that forms a drainage divide, with high mountains passes on the 

road from Rumichaca to Huancavelica at the Chonta Pass at about 4,840 m, and nearby at the 

Huayraccasa Pass at about 4,950 m (although it is signposted as 5,059 m: the altitudes on the 

published 1:100,000 scale maps are believed to be low as indicated by GPS readings and by 

detailed project topographic maps in the case of Arcopunco) on the road to Huachucolpa, both 

just south of the Arcopunco Project. The Arcopunco and Terciopelo Projects are located on 

eroded volcanoes with altitudes of 5,298 m and about 5,060 m respectively, with craggy bare 

rock outcrop and extensive talus slopes. On the lower slopes there is bunch grass vegetation, and 

the upper parts of glacial valleys often have extensive marshes. 

The River Pumapuncu flows north from the Chonta Pass on the west side of the Retazos Project, 

and lower down becomes the River Astobamba then turns east as the River Ichu. The 

Huancavelica Lithocaps Project is located within the Ichu basin. This is a tributary of the River 

Mantaro, which becomes the north-west flowing Rivers Ene, Tambo and Ucayali which joins the 

Amazon above Iquitos. 

On the south side of the Chonta Pass there are a series of natural and man-made, high altitude 

lakes, the largest being Choclococha and Orococha, which drain south east into the Pampas 

basin, then joins the north-west flowing Apurimac River which joins the Mantaro and eventually 

the Amazon. 

The continental divide between Pacific and Atlantic is crossed on the road west of Rumichaca. 

42



Figure 5.2 View of the physiography of the Arcopunco Project, looking north. 

Cerro Arco Punco (5,125 m) on left. 

Figure 5.3 View of physiography of the Terciopelo Project, looking north east. 

The Cerro Terciopelo (about 5,000 m) alteration zone is in the center. Nevado Huamanrazo (5,298 m), the highest 

peak in the district, is on the left. 

43



6 HISTORY 



The Huancavelica mining district lies to the north, famous for mercury, and the Castrovirreyna 

mining district, exploited for silver, gold, lead and zinc, is located to the southwest of the 

Huancavelica Lithocaps Project. 


rock sampling, mapping and two phases of diamond drilling totalling 3,581 m in 14 holes. Based 

on drilling results, Buenaventura estimated a mineral resource of 2.66 Mt at 0.39 g/t Au 

containing 33,400 oz at a cut-off of 0.3 g/t (Meza & Carero, 1999): this is a historical resource 

estimate and was not made to CIM / NI 43-101 standards, and is included here for information 

only. 

Braeval optioned the Arcopunco project in 2012 and has carried out rock sampling, and 

relogging and check sampling of drill core. The work is described in reports by Carrizales (2012) 

and Ríos (2012). The project was also visited by Sillitoe (2011) with Braeval geologists. 

The Terciopelo Project was explored by Buenaventura in 2009-10 which included geological 

mapping, rock and soil sampling, ground geophysics (magnetic and induced polarization 

surveys), and diamond drilling in two phases totaling 2,883 m in 10 holes to test porphyry and 

high sulfidation epithermal targets. The work is described in reports by Sabastizagal et al. (2010) 

and Calizaya & Torres (2010). Based on drilling results, Buenaventura estimated a mineral 

resource of 4.5 Mt at 0.2 g/t Au containing 22,000 oz at a cut-off of 0.2 g/t (Calizaya & Torres, 

2010): this is a historical resource estimate and was not made to CIM / NI 43-101 standards, and 

is included here for information only. 

Braeval signed an option to acquire the project in September 2012 and have carried out no 

exploration yet. 

The Retazos Project is a large land package surrounding the Arcopunco and Terciopelo Projects 

that was assembled by Braeval in 2011. Braeval carried out a program of reconnaissance 

exploration in 2012 including rock sampling and geological mapping, which is described in a 

report by Cuellar & Espiritu (2012). 

The Huancavelica Lithocaps Project covers parts of four government topographic and 

INGEMMET geological maps at 1:100,000 scale: sheets 26-m (Conayca), 26-n (Huancavelica), 

27-m (Castrovirreyna) and 27-n (Huachocolpa). The geology is described in memoirs by Salazar 

44



& Landa (1993: Sheets 26-m, 27-m and others), Morche et al. (1996: Sheet 27-n), and Morche & 

Larico (1996: Sheet 26-n). 

The regional geology and metallogenesis of the district related to the Chonta Fault is described in 

a thesis by Rodríguez (2008). 

45



7 GEOLOGICAL SETTING AND MINERALIZATION 

7.1 Regional Geology 

The regional geology is shown in Figure 7.1. The region has folded Paleozoic to Mesozoic 

sedimentary rocks of the Devonian Excelsior Group, Carboniferous Ambo, Tarma and 

Copacabana Groups, Permian Mitu Group, Triassic-Jurassic Pucará Group, Jurassic-Cretaceous 

Cercapuquio Formation, Chunumayo Formation, Goyllarisquizga Group, Chulec, Pariatambo, 

Jumasha and Casapalca Formations, which include continental and marine siliciclastic sediments 

and carbonates. These outcrop west of the NW-trending Chontas Fault and east of the N-S 

trending Jatumpata-Huachocolpa Fault, and have been folded into N-S to NW trends. 

These are overlain unconformably by late Paleocene to Neogene volcanic rocks of the Eocene 

Tantará Formation, Oligocene Sacsaquero Formation, Miocene Castrovirreyna, Caudalosa, 

Auquivilca and Huichinga Auquivilca Formations. The youngest volcanic rocks are the Late 

Miocene to Pliocene Astobamba Formation which form eroded stratovolcanoes. The volcanic 

rocks are of intermediate to felsic, high-K calc alkaline composition. Intrusive rocks are plutons 

of granodiorite and quartz monzonite, and stocks and domes of andesite to dacite. 

The NW-trending Chonta Fault is an important control on mineralization and has been studied by 

Rodriguez (2008). It marks the contact between Precambrian Amazonian basement and Paracas 

basement. In the Jurassic-Cretaceous it acted as normal fault and controlled sedimentary basins. 

In the Upper Miocene to Pliocene it had inverse vertical movement bringing Late Cretaceous 

Casapalca Formation, red-bed sediments and overlying Paleogene-Neogene up on the west side 

with dip to the west. This was associated with sinistral transcurrent movement, with veins and 

stocks controlled by E-W to WNW tension and Riedel shears. The sense of movement was 

dextral after 3.7 Ma which closed the mineralized dilational zones. 

46



Figure 7.1 The geological setting of the Huancavelica Lithocaps Project with Braeval concessions. 

Map prepared by Braeval, October 2012. Redrafted from 1:100,000 scale maps by INGEMMET. 

7.2 Project Geology and Mineralization 

7.2.1 Arcopunco Project 

The Arcopunco Project is hosted by volcanic rocks of the Miocene Huichinga and 

Castrovirreyna Formations, with minor stocks in the area (Sheet 27-m). The volcanic rocks are 

andesitic. There is no volcanic edifice preserved indicating a fairly deep level of erosion. There 

is extensive advanced argillic and silicic alteration forming a lithocap. The silica is residual 

vuggy and granular quartz, and there is also quartz deposition as fine grained silicification. 

Hydrothermal breccias are abundant with a matrix of alunite, kaolinite and dickite. Pebble dikes 

are also described by Buenaventura. There are late stage chalcedony and smectite veinlets 

deposited at a lower temperature from a less acid fluid. Meza & Camero (1999) describe three 

types of intrusive rock based on mapping and drilling: a coarse grained, feldspar-biotitehornblende 

porphyry in the center of the system; finer grained andesite dikes with quartz veins; 

and a small andesite porphyry stock east of the summit. The principal structural trend of breccias 

and mineralization is NW-SE. 

47



Mineralization on surface is orpiment, realgar, possible cinnabar, minor sulfur, and relics of late 

stage pyrite as breccia fill and veinlets, mostly oxidized to jarosite. On the north west side of the 

mountain there is patchy to wormy texture advanced argillic alteration underlain by quartz 

veinlets with banded edges, a center line, straight to wavy, with some pyrite infill. The veinlets 

have characteristics of porphyry gold systems. Quartz veinlets also occur in clasts in a breccia of 

andesite porphyry exposed at lower elevation to the south east on the road to Tinqui Corral, and 

to the east at Tinqui Corral in a plagioclase-biotite andesite porphyry stock with phyllic alteration 

with silver-rich intermediate sulfidation mineralization in structurally controlled tectonic 

breccias. The distribution of quartz veining indicates the possibility of up to three porphyry 

centers. 

Figure 7.2 Geology and alteration map of Arcopunco. 

Map prepared by Braeval, September 2012, based on Buenaventura maps. 

The drill holes at Arcopunco are shallow angle holes (-20° to -40°) into the silicified ridge top to 

test the potential for oxidized gold mineralization in a high sulfidation epithermal environment. 

The holes reviewed intersect patchy to wormy texture advanced argillic alteration, which is cut 

by zones of silicification and hydrothermal brecciation with pyrite, orpiment and sulfur. The 

reports indicate that the sulfides are prodominantly pyrite with orpiment, molybdenite, minor 

48



realgar and sulfur. Anomalous copper is related to enargite and bornite, and petrographic studies 

have also identified sulfosalts such as tennatite-tetrahedrite and seligmanite (CuPbAsS3) (Meza 

et al., 1998; Meza & Camero, 1999). The mineral assemblage indicates a high sulfidation 

epithermal system. There is no vuggy silica. Quartz veinlets occur on surface below the patchy to 

wormy texture alteration, but were not seen in core as the holes were probably not drilled deep 

enough. Low grade gold mineralization is associated with anomalous As, Mo and, in places, Cu. 

The outcropping alteration and mineralization at Arcopunco is interpreted to be the deep part of a 

lithocap with high sulfidation gold mineralization, which overprints the top part of a porphyry 

system. 

Figure 7.3 Patchy texture of fine grained silica with patches of pyrophyllite, kaolinite and/or dickite. 

Hole DDH-A4, sample 6395, 6-8 m. 82 ppb Au, 0.2 ppm Ag, 94 ppm As, 69 ppm Cu, 27 ppm Mo. 

Figure 7.4 Silicified breccia with pyrite cutting patchy texture. 

Hole DDH-A4, sample 6405, 21-23 m. 162 ppm Au, 0.4 ppm Ag, 289 ppm As, 233 ppm Cu, 110 ppm Mo. 

49



Figure 7.5 Wormy texture with orpiment in fractures. 

Hole DH-A4, sample 6399, 13.0-14.0 m. 254 ppb Au, 0.3 ppm Ag, 1238 ppm As, 179 ppm Cu, 86 ppm Mo. 

Figure 7.6 Hydrothermal breccia with silica clasts and matrix of vuggy, creamy silica infilled with orpiment. 

Hole DDH-A4, sample 6413, 30.75-32.30 m. 154 ppb Au, 0.2 ppm Ag, >1% As, 82 ppm Cu, 315 ppm Mo. 

50



Figure 7.7 Banded quartz veinlets with residual quartz alteration (vuggy silica). 

Check sample 110701. 104 ppb Au, 0.34 ppm Ag, 119 ppm As, 345 ppm Cu, 17 ppm Mo, 186 ppm Pb. 

7.2.2 Terciopelo Project 

The Terciopelo Project is hosted by the Pliocene Astobamba Formation (Sheet 26-m). Mapping 

by Buenaventura has defined a volcanic stratigraphy at of andesite autobreccia, porphyritic 

andesite lava, aphyric andesite lava and aphyric “vitriophyre” (rhyolite), with a feldspar 

porphyry stock cutting the first three units (Sabastizagal et al., 2010). 

Observations by the author show that the outer edges of a stratovolcano edifice are preserved, as 

shown by outward dipping flows on surrounding mountains. Terciopelo is formed of andesite 

volcanic breccias and maroon, flow banded rhyolite lavas. There is pervasive argillic, advanced 

argillic and silicic alteration of the volcanic rocks to the edge of the pampa. On the Terciopelo 

ridge there is structurally controlled (125°) alteration of silicification and residual silica (vuggy 

silica), zoned outwards to advanced argillic alteration (pyrophyllite, dickite, kaolinite, diaspore) 

with patchy to wormy texture, and zones further outwards to argillic alteration and to unaltered. 

The Jacucucho zone has patchy to wormy texture advanced argillic alteration with a coincident 

chargeability anomaly. Rhyolite flows or domes with flow banding and autobrecciation form 

rocky ridges. These have very strong parallel fracturing trending 125° and residual silica 

51



alteration to vuggy quartz and granular quartz, with native sulfur infill. They thus have 

hydrothermal and structural porosity. There are rhyolite dikes with vuggy silica alteration on the 

ridge slopes also. The altered volcanic rocks are cut to the south by a non-altered, younger, postalteration 

volcanic cone. 

There are two targets at Terciopelo: high sulfidation epithermal gold mineralization in a lithocap, 

and porphyry style mineralization overprinted by the deep part of the lithocap. 

The high sulfidation epithermal mineralization was drilled on the north side of the Terciopelo 

ridge at an elevation of about 4,900 m. The principal sulfide reported is pyrite, with minor 

orpiment, realgar, rutile, leucoxene, sulfur and traces of chalcocite and covellite (Calizaya & 

Torres, 2010). The latter two are interpreted to be high sulfidation minerals rather than the 

product of supergene enrichment. There are structural zones with up to 0.55% Cu (TER10-07). 

Hole TER10-07 was examined by the author and cuts volcanic andesite breccias with minor 

hydrothermal or phreatic breccias with silicic alteration (often black with fine pyrite) and broad 

zones of intermediate argillic alteration (smectite and illite). The hydrothermal breccias have 

cement of alunite, white silica, sulfur, orpiment and scorodite. There are some narrow zones of 

residual vuggy silica alteration of volcanic breccia which have the highest gold grades due to the 

enhanced porosity. Zones with >1% As are related to pale blue-green scorodite(?), oxidized after 

orpiment (seen as remnants). There is deep oxidation to jarosite oxidation to end of hole. The 

alteration and mineralization is structurally controlled, as seen on surface. 

Mineralization in the porphyry and lithocap is reported as pyrite with minor molybdenite and 

magnetite (Sabsatizagal et al., 2010). The porphyry target was tested by only one hole, TER-01, 

while the other four drilled in this zone did not get through the advanced argillic alteration zone. 

This hole shows a good alteration profile downhole from advanced argillic (patchy and wormy 

texture) to intermediate argillic to phyllic to potassic (biotite) over its 503 m length (436 m 

vertical). Low grade gold mineralization with anomalous Cu and Mo occur in parts of the 

advanced argillic zone, but there are no significant copper, gold and molybdenum grades in the 

phyllic and potassic zones, which are pyritic with only traces of chalcopyrite. Alteration and 

mineralization are hosted by a plagioclase porphyry andesite cut (at 420.3 m) by an inter-mineral 

diorite porphyry. The andesite porphyry is in faulted contact with volcanic rocks with patchy 

texture advanced argillic alteration in the upper part of the hole. The fault zone is very wide from 

257-314 m in texture-destructive phyllic alteration with remnant patchy texture. 

The interpreted sequence of alteration and mineralization events shown by the hole is: 

1. Potassic alteration (biotite) with quartz veinlets (banded, A and B) of both intrusions. 

There are also quartz-anhydrite-pyrite veins (A-type?), and lilac anhydrite veins with 

sulfur. The amount of quartz veining increases downhole until the diorite. The diorite has 

52



less veining so is interpreted as younger and inter-mineral. The upper contact of the 

diorite has magnetite-epidote-chlorite alteration over 8 m (420.5-429.0 m), with 

magnetite to 445 m. Quartz veining extends into the advanced argillic zone near the top 

of the hole. 

2. Patchy texture advanced argillic alteration in the upper part of the hole (with minor vuggy 

silica) with relic quartz veinlets, showing that advanced argillic alteration overprints 

potassic alteration. 

3. The patchy texture and relic quartz veins are cross cut by quartz-pyrite D veinlets with 

sericite halo which grades outwards to illite-smectite alteration (intermediate argillic). 

Going downhole from the advanced argillic zone there is pervasive intermediate argillic 

alteration, which grades into phyllic alteration. This dies out downhole to leave potassic 

alteration with phyllic as veinlet halos. 

4. Late gypsum veinlets. 

The following core photos show a profile from top to bottom through the lithocap to the 

porphyry. 

Figure 7.8 Breccia with silicified clasts with residual (vuggy) silica, and vuggy matrix with alunite. 

Hole TER10-07, 14.8 m. 57 ppb Au, 0.1 ppm Ag, 32 ppm As, 10 ppm Cu, 11 ppm Mo. The creamy color of the 

quartz is due to dissemination of very fine grained rutile and leucoxene replacing ferromagnesian minerals 

(Canchaya, 2011). 

53



Figure 7.9 Breccia with silicified clasts and quartz matrix, both with residual quartz (vuggy silica) texture. 

Hole TER10-07, 49.2 m. 551 ppb Au, 5.15 ppm Ag, 17 ppm As, 11 ppm Cu, 9 ppm Mo. The creamy color of the 

quartz is due to dissemination of very fine grained rutile and leucoxene replacing ferromagnesian minerals 

(Canchaya, 2011). 

Figure 7.10 Black, sulfide-rich andesite breccia, with open space hydrothermal breccia partly infilled by 

white silica, sulfur and orpiment. 

Hole TER10-07, 60.1 m. 34 ppb Au, 6.41 ppm Ag, 534 ppm As, 401 ppm Cu, 8 ppm Mo. 

54



Figure 7.11 Patchy texture advanced argillic alteration cut by pyrite veinlets. 

Hole TER09-01, 5.4 m, 61 ppb Au, 0.07 ppm Ag, 135 ppm As, 452 ppm Cu, 27 ppm Mo. 

Figure 7.12 Banded quartz veinlets surrounded by wormy texture advanced argillic alteration. 

Hole TER09-01, 110.5 m. 249 ppm Au, 1.06 ppm Ag, 85 pm As, 490 ppm Cu, 10 ppm Mo. 

Figure 7.13 A and B type quartz veinlets with pyrite cut by a late gypsum veinlet. Wall rock sericite alteration 

with relic of biotite alteration. 

Hole TER09-01, 315.7 m. 9 ppb Au, 0.09 ppm Ag, 24 ppm As, 63 pm Cu, 14 ppm Mo. 

55



7.2.3 Retazos 

Figure 7.14 Quartz B veinlets with potassium feldspar and biotite alteration. 

Hole TER09-01, 373.8 m. 14 ppb Au, 0.29 ppm Ag, 38 ppm As, 451 ppm Cu, 31 ppm Mo. 

Mineralization identified in the Retazos Project by reconnaissance exploration comprises 

polymetallic intermediate sulfidation vein, breccia and replacement to possible skarn styles of 

mineralization. 

The Retazos Project comprises 16,395 ha of mining concessions around the Arcopunco and 

Terciopelo Projects. The geology is shown in Figure 7.1 and comprises Neogene volcanic rocks 

overlying folded Paleozoic to Mesozoic sedimentary rocks which outcrop west of the Chonta 

Fault and east of the Jatumpata-Huachocolpa Fault. 

Reconnaissance mapping and sampling by Braeval in 2012 (Cuellar & Mayta, 2012) has focused 

on four areas, shown in Figure 7.15, and described briefly as follows. 

7.2.3.1 Astobamba 

Opal, advanced argillic and silica-kaolinite alteration at Astobamba affects andesite lavas, 

breccias and tuffs of the Huichinga Formation (Upper Miocene) and Astobamba Formation 

(Pliocene). It is interpreted as a distal zone to the Terciopelo Project located 2.8 km to the north 

east. Some rock chip samples returned anomalous As, Ag, Cu, and Mo. 

7.2.3.2 Hornopampa 

Mineralization at Hornopampa is hosted by an unaltered andesite dome on the Chonta Fault. 

Mineralization is in veins and breccias in 140° and 080°structures up to 0.40 m wide with sericite 

wall rock alteration and fill of quartz, calcite, sphalerite, galena, malachite and tenorite. There 

are several small mines. Samples returned values of Au, Ag, As, Cu, Mo, Pb, Zn. Mineralization 

is polymetallic of intermediate sulfidation epithermal in style. 

56



7.2.3.3 Arcopunco 

Reconnaissance exploration was carried out around the Arcopunco Project. The Las Animas 

mine, located to the north on the Las Animas and Los Tres Mosqueteros concessions, has an 

intermediate sulfidation epithermal polymetallic vein 300 m long and up to 0.80 m wide, with 

values of Au, Ag, Pb and Zn. 

7.2.3.4 Miguelplata 

The geology at Miguelplata is carbonates and cherts of the Pucará Group, overlain by andesite 

lavas of the Huichinga Formation (Upper Miocene), cut by feldspar-hornblende and feldsparhornblende-biotite 

dikes and sills. Associated with one such sill is a is a halo of marbleisation 

600 m long by 30 m wide with disseminated sphalerite, and galena, and other areas are silicified 

with disseminated pyrite and quartz veins. 

Figure 7.15 Target areas in Retazos Project. 

Map from Cuellar & Mayta, 2012. 

57



8 DEPOSIT TYPES 

The main exploration targets in the Arcopunco and Terciopelo Projects are porphyry Cu ± Mo ± 

Au ± Ag deposits concealed beneath extensive zones of lithologically controlled advanced 

argillic alteration known as lithocaps. The lithocaps contain high sulfidation epithermal gold 

mineralization, which was tested by previous explorers, with low grade results. 

Porphyry copper systems were reviewed by Sillitoe (2010) and his model is shown in Figure 8.1, 

with the interpreted position of the Arcopunco and Terciopelo Projects. Porphyry copper systems 

may contain porphyry Cu ± Mo ± Au ± Ag deposits of various sizes ranging from a few million 

tonnes to several billion tonnes. Typical primary porphyry copper deposits have average grades 

of 0.5 to 1.5% Cu,



textures at Arcopunco. They have also been described in a thesis about Tantahuatay (Pérez, 

2011), and at the Escondida, Chile (Padilla et al., 2001) and Hugo Dummett, Mongolia 

(Khashgerel et al., 2008) porphyry copper deposits. 

At Terciopelo, drilling has shown that the patchy texture overprints quartz veining and potassic 

alteration, and overlies a porphyry system with phyllic and potassic alteration. At Arcopunco, 

quartz veinlets outcrop below patchy texture in the advanced argillic lithocap. Molybdenum is 

anomalous in the deep lithocap of both systems, with up to 0.037% Mo over 6.2 m at Arcopunco 

and 0.037% Mo over 39.4 m at Terciopelo. 

Figure 8.1 Porphyry system deposit model of Sillitoe (2010) showing interpreted position of the Arcopunco 

and Terciopelo projects in the deep part of the lithocap overlying concealed porphyry systems. 

59



9 EXPLORATION 

9.1 Arcopunco Project 


rock sampling, geological mapping, petrography and two programs of diamond drilling for a 

total of 3,581 m in 14 holes. There are maps but no reports describing the rock sampling. There 

is an Excel database with 1,351 rock samples with analyses for Au, Ag, As, Ba, Bi, Cu, Hg, Mo, 

Pb, Sb and Zn. Sample width, type and lithology are not recorded. A second Excel database 

contains sampling of named veins (Hilda, Asia, Grau, Ramal Grau, Cobriza, Rosita 1, Rosita 2, 

Velencia 1, Velencia 2, Velencia 2N, Maria, Daysy, Veta 1, Veta 3, Sayda, Sayda N, 

Buenaventura, Buenaventura 1, Buenaventura 2, Liliana, Katy, Esmeralda, Rescatada, Gladys, 

Patricia, Don Victor, Olaya, Nancy, and minor structures) in the east part of Arcopunco (outwith 

the present Braeval mining concessions). This database has 310 samples with widths of 0.2 to 5.3 

m (mostly up to 2.0 m), probably channel samples, and analyses for Au, Ag, Cu, Pb, Zn, Mo, Bi, 

As, Sb, Hg, Mn and Ba. Sample type, structure and lithology are not recorded. The total number 

of rock samples taken by Buenaventura is 1,661. 

Braeval carried out exploration at the Arcopunco project in 2011-12 including additional rock 

sampling (27 samples), relogging and check sampling of drill core, and PIMA analyses of 

alteration in core. The work is described in a report by Ríos (2012). The project was also visited 

by Sillitoe (2011) with Braeval geologists. 

Geochemical plots of the Buenaventura and Braeval rock samples were made by Braeval for Au, 

Ag, Cu, Mo, Pb and Zn and are shown in Figure 9.1 to Figure 9.6. The geochemistry shows 

anomalous Au, Cu, Mo and Pb on Cerro Arcopunco related to the high sulfidation epithermal 

zone and top of porphyry, and highly anomalous Ag, Pb and Zn, with some Au and Cu, in the 

veins to the east, interpreted as intermediate sulfidation epithermal veins peripheral to the 

porphyry-epithermal center. 

60



Figure 9.1 Rock geochemistry map for Au at Arcopunco. 

Figure 9.2 Rock geochemistry map for Cu at Arcopunco. 

61



Figure 9.3 Rock geochemistry map for Mo at Arcopunco. 

Figure 9.4 Rock geochemistry map for Ag at Arcopunco. 

62



Figure 9.5 Rock geochemistry map for Pb at Arcopunco. 

Figure 9.6 Rock geochemistry map for Zn at Arcopunco. 

63



9.2 Terciopelo Project 

The Terciopelo Project was explored by Buenaventura in 2008-10. Detailed surface exploration 

and drilling focused on two sectors: Jacucucho in the head of the glacial valley east of Cerro 

Terciopelo, which is partly covered by a marsh; and the Andrea zone, on the north side of the 

Cerro Terciopelo ridge. The exploration included the following work, described in reports by 

Sabastizagal et al. (2010) and Calizaya & Torres (2010): 

• Geological mapping at 1:5,000 scale and 1:1,000 scale; 

• Short wave infra-red spectral analyses by TerraSpec spectrometer of 200 surface rock 

samples for alteration mapping (Torres, 2009); 

• Rock and soil sampling (1329 rock samples in channel and chip samples, including 4 

continuous channel samples up to 115 m long; 138 soil samples); 

• Ground geophysics: magnetic and induced polarization surveys over 22.6 line km in 13 

lines over the Jacucucho target in the valley; 

• Diamond drilling 2009-10 (10 holes for 2,883 m); 

• All of the core from the Phase 1 of drilling was analyzed at regular intervals with a 

TerraSpec spectrometer to define alteration minerals. 

• Petrographic description of 5 thin sections from hole TER-01 (Canchaya, 2010) and of 3 

thin sections from hole TER10-07 and TER10-09 (Canchaya, 2011). 

Surface geochemistry was plotted for rocks (channel samples), chips (rock chips) and soils for 

Au, Ag, Cu, Pb and Zn. The gold maps are shown in Figure 9.7 to Figure 9.9 and show 

anomalies over the two targets, and the copper rock channel map is shown in Figure 9.10. 

Braeval signed an option to acquire the project in September 2012 and have carried out no 

exploration yet. 

64



Figure 9.7 Plot of rock channel geochemistry for Au at Terciopelo. 

Jacucucho zone on right, Andrea zone on left. 

Figure 9.8 Plot of rock chip geochemistry for Au at Terciopelo. 

65



Figure 9.9 Plot of soil geochemistry for Au at Terciopelo. 

Figure 9.10 Plot of rock channel geochemistry for Cu at Terciopelo. 

66



9.3 Retazos Project 

Braeval carried out a program of reconnaissance exploration at the Retazos Project in 2012 

which is described in a report by Cuellar & Mayta (2012). The work included reconnaissance 

mapping, prospecting, and collection of 225 rock chip samples. 

67



10 DRILLING 

The Arcopunco and Terciopelo Projects have been drilled by Buenaventura. No drilling has been 

carried out on the Retazos Project to the knowledge of Braeval. Braeval has not carried out any 

drilling itself. 

10.1 Arcopunco Project 

Buenaventura carried out two programs of diamond drilling at the Arcopunco Project in 1997-98. 

Phase 1 comprised 2,159 m in 9 holes, and Phase 2 comprised 1,422 m in 5 holes, for a total of 

3,581 m in 14 holes with an average length of 256 m and at low angles of inclination of -20°to - 

45°. The drill hole collar information is listed in Table 10.1. The drill holes are shown on a map 

in Figure 10.1. The drilling was carried out on ground covered by the present Trabante and 

Retazos 4 mining concessions. The first phase of drilling is described in a report by Meza et al. 

(1998), and the second phase in a report by Meza & Camero (1999). The first includes 

petrography report of 3 thin sections and 3 polished sections (from DDH-A4) by Saez (1998), 

and of 2 thin sections and 2 polished sections by Andrade (1998). 

Hole No. Northing Easting Altitude Azimuth Inclination Length (m) 

PHASE 1 

DDH-A1 8558795 492710 4952 137 -45 201.00 

DDH-A2 8558792 495710 4952 341 -40 253.30 

DDH-A3 8558874 495930 5050 73 -40 179.50 

DDH-A4 8558912 495785 5022 72 -20 220.00 

DDH-A5 8558942 495682 4983 85 -20 292.85 

DDH-A6 8558762 495951 5002 72 -40 251.00 

DDH-A7 8558664 495980 4990 72 -40 252.00 

DDH-A8 8558597 496416 4945 258 -40 260.00 

DDH-A9 8559070 495710 4977 252 -40 250.00 

Subtotal 2159.65 

PHASE 2 

DDH-A10 8558906 495737 4992 73 -40 333.00 

DDH-A11 8558974 495711 4951 73 -30 314.00 

DDH-A12 8558728 495840 4970 73 -40 242.80 

DDH-A13 8558617 495818 4961 73 -40 335.30 

DDH-A14 8558974 495618 4962 73 -40 197.00 


Total 3581.75 

Table 10.1 Diamond drill holes at Arcopunco project by Buenaventura in 1997-98. 

68



A table of significant gold intersections is listed in Table 10.2. This shows best intersections of 

0.53 g/t Au over 30.5 m (DDH-A4), 0.52 g/t Au over 9.5 m (DDH-A4), and 0.40 g/t Au over 

62.0 m (DDH-A12). The maximum gold value is 1.07 g/t over 1.05 m (DDH-A4). Gold 

mineralization is associated with anomalous Mo, Zn, Pb, As and Cu. 

Hole No. From (m) To (m) Interval (m) Au ppm Cu ppm Mo ppm 

DDH-A1 

DDH-A2 

DDH-A3 117.9 123.9 6.0 0.36 52 150 

132.4 138.6 6.2 0.35 111 369 

150.3 170.3 20.0 0.40 78 259 

DDH-A4 32.3 47.0 14.7 0.41 101 36 

66.0 71.0 5.0 0.39 22 116 

86.0 95.5 9.5 0.52 153 89 

117.0 147.5 30.5 0.53 60 180 

177.0 208.0 31.0 0.35 75 123 

DDH-A5 168.0 199.5 31.5 0.43 138 111 

DDH-A6 

DDH-A7 

DDH-A8 

DDH-A9 

DDH-A10 

DDH-A11 55 61 6.0 0.40 178 123 

269 275 6.0 0.42 1355 25 

DDH-A12 87.0 149.0 62.0 0.40 841 5 

DDH-A13 41.0 51.0 10.0 0.35 35 37 

DDH-A14 153 159.1 6.1 0.45 237 135 

Table 10.2 Significant intersections in Arcopunco holes drilled by Buenaventura, 1997-78. 

Intervals calculated by author above a cut off of 0.3 g/t Au and no more than 6.0 m internal dilution. 

69



Figure 10.1 Map of Buenaventura drill hole locations and alteration at Arcopunco. 

Map drawn by Braeval, September 2012, based on maps by Buenaventura. Braeval sections shown. 

Several of the drill platforms were identified in the field by the author. There are no pipes to 

mark the drill collars, but the platform number is painted on the rock face at some platforms. The 

drill core is stored in corrugated plastic core boxes in a locked office at the nearby Rescatada 

Mine, owned by Buenaventura. The mine camp is a secure area. The author visited the core store 

and examined core from holes DDH-A4, A6 and A14. The boxes and the core are in good 

condition, although the boxes are poorly labelled, some intervals were wrongly sampled (from 

bottom to top of the box instead of top to bottom), and some boxes of the best grade intervals are 

missing. 

70



Figure 10.2 The Arcopunco drill core is stored in a locked office at the nearby Recuperada Mine owned by 

Buenaventura. 

Figure 10.3 The Arcopunco drill core is stored in corrugated plastic core boxes in a locked office at the 

nearby Recuperada Mine. 

71



Braeval carried out re-logging of the 10 of the 14 holes in 2012, described in a report by 

Carrizales (2012), including check sampling by taking core duplicates, short wave infra-red 

analyses of alteration minerals with a PIMA field spectrometer of 276 samples from the same 

interval as the core duplicates (Warsheid & Custodio, 2012), and thin section petrography of 4 

samples (Cánepa, 2012). Six drill sections were made with interpreted lithology, alteration and 

geochemistry for Au, Ag, Cu and Mo. The sections are shown on Figure 10.1 and the plots for 

section B-B1 (holes DDH-A4, A5, A9 and A10) are shown in Figure 10.4 to Figure 10.8. 

Figure 10.4 Lithology logged in drill holes and interpretation of Arcopunco section B-B1. 

Logging, interpretation and section by Braeval, September 2012. 

72



Figure 10.5 Alteration logged in drill holes and interpretation of Arcopunco section B-B1. 

Logging, PIMA analyses, interpretation and section by Braeval, September 2012. 

73



Figure 10.6 Gold grades of drill holes in Arcopunco section B-B1. 

Section by Braeval, September 2012. The Buenaventura assays are plotted in the hole trace. The Braeval check 

assays are plotted as histograms on the right hand side. 

74



Figure 10.7 Copper grades of drill holes in Arcopunco section B-B1. 



75



Figure 10.8 Molybdenum grades of drill holes in Arcopunco section B-B1. 



10.2 Terciopelo Project 

The Terciopelo Project was drilled by Buenaventura in 2009-10 with a total of 2,883 m in 10 

holes. Phase 1 was carried out between November 2009 and January 2010 and drilled a porphyry 

target called the Jacucucho anomaly with 5 holes totaling 1,903 m, called TER09-01 to TER10- 

05. The maximum hole length was 503 m, and the average length was 380 m. 

Phase 2 of the program tested a high sulfidation epithermal gold target at higher altitude on the 

ridge of Cerro Terciopelo in a zone called the Andrea Target with 5 holes totalling 979 m. The 

maximum hole length was 283 m and the average length was 196 m. Hole TER10-06 was drilled 

in June 2010, and holes TER10-07 to TER10-10 were drilled in October to December 2010. 

The first three holes are described by in a report by Sabastizagal et al. (2010). The Phase 2 holes 

are described in a report by Calizaya & Torres (2010). Holes TER09-04 and TER09-05 are not 

described in either report. There are strip logs in Adobe Acrobat format for all ten holes. A table 

of the holes is given in Table 10.3 and the location of the holes is shown in Figure 10.9. 

76



Hole No. Northing Easting Altitude Azimuth Inclination Length (m) 

PHASE 1 

TER09-01 8570510 496740 4714 180 -60 503.00 

TER09-02 8570565 496620 4735 180 -60 289.80 

TER09-03 8570567 496620 4735 000 -45 362.70 

TER09-04 8570509 496500 4762 000 -60 426.50 

TER10-05 8570449 496982 4708 180 -60 321.30 


PHASE 2 

TER10-06 8570821 495917 4,847 207 -40 283.9 

TER10-07 8570664 495718 4,906 042 -44 200.9 

TER10-08 8570662 495717 4,906 218 -44 158.9 

TER10-09 8570697 495645 4,889 042 -38 186.3 

TER10-10 8570645 495556 4,889 234 -45 149.9 


Total 2883.20 

Table 10.3 Diamond drill holes drilled at Terciopelo Project by Buenaventura, 2009-10. 

Note that the first 5 holes are labelled TER-01 to TER-05 on the core boxes and report. 

Figure 10.9 Location of drill holes at Terciopelo. 

77



A list of significant intervals is shown in Table 10.4 and shows grades up to 0.53 g/t Au over 

12.4 m (TER10-09), and lengths up to 81.6 m at 0.20 g/t Au, 0.06% Cu and 0.01% Mo (TER09- 

01). Copper grades are anomalous in the gold intervals in the holes in the porphyry and lithocap 

(TER09-01 to TER09-04), and in structures in the high sulfidation epithermal zone, with up to 

0.55% Cu over 3.8 m (TER10-07). Molybdenum is strongly anomalous in the porphyry-lithocap 

zone in the first four holes, with up to 365 ppm (0.037%) Mo over 39.4 m (TER09-01). 

Hole No. From (m) To (m) Interval (m) Au g/t Cu ppm Mo ppm 

TER09-01 26.0 36.0 10.0 0.252 346 53 

71.9 153.5 81.6 0.201 558 35 

156.9 168.7 11.8 0.064 508 115 

TER09-02 5.0 24.7 19.7 0.201 463 33 

40.8 117.2 76.4 0.223 663 17 

172.5 181.7 9.2 0.266 881 37 

TER09-03 15.4 82.6 67.2 0.110 76 262 

Incl. 13.6 53.0 39.4 0.130 96 365 

75.2 100.85 25.65 0.129 104 75 

132.4 142.8 10.4 0.029 29 120 

255.3 261.3 6.0 0.018 112 148 

TER09-04 26.8 36.8 10.0 0.052 97 146 

TER10-05 

101.25 104.25 3.0 0.058 67 316 

TER10-06 4.8 7.5 2.7 0.316 113 12 

TER10-07 16.0 24.0 8.0 0.136 22 12 

TER10-08 

46.0 56.4 10.4 0.488 39 7 

56.4 60.0 3.6 0.028 3858 12 

83.5 90.0 6.5 0.324 70 8 

107.0 113.5 6.5 0.172 24 9 

127.5 131.5 3.8 0.007 5523 11 

TER10-09 23.5 39.5 16.0 0.240 17 10 

49.75 62.15 12.4 0.533 11 7 

133.75 141.70 7.95 0.005 1885 9 

TER10-10 60.0 66.0 6.0 0.316 7 4 

75.0 78.0 3.0 0.265 15 9 

Table 10.4 Significant intervals in Terciopelo drill holes. 

From Sabastizagal et al. (2010) and Calizaya & Torres (2010), recalculated by author to length-weighted average 

grades, and Cu and Mo intervals added. Cut-off 0.1 g/t Au. 

78



The author did not visit the areas drilled in the field as we walked in from the west, while the 

drilling was carried out on the east and north sides of the mountain. Some drill roads and 

platforms were visible from the ridge at a distance to the east in the Jacucucho zone in the valley. 

The drill core is stored by Buenaventura in a secure, commercial, multiclient core and sample 

storage warehouse at Independencia in north Lima, run by ABIL Corporación, a Peruvian 

logistics company, which is independent of Braeval. The author visited the core store and 

examined core from holes TER09-01 and TER10-07. 

Cross sections of alteration, lithology, Au and Mo for hole TER09-01 are shown in Figure 10.11 

to Figure 10.14, and cross sections of alteration and Au for holes TER10-07 and TER10-08 are 

shown in Figure 10.15 and Figure 10.16. 

Figure 10.10 The Terciopelo drill core is stored at a commercial, multi-client, core and sample storage facility 

at Independencia, north Lima. 

Core from one of the Terciopelo holes is laid out for examination on the bench and is stacked on pallets on the left. 

79



Figure 10.11 Cross section of alteration for hole TER09-01. 

80



Figure 10.12 Cross section of lithology for hole TER09-01. 

81



Figure 10.13 Cross section of Au assays for TER09-01. 

82



Figure 10.14 Cross section of Mo analyses for TER09-01. 

83



Figure 10.15 Cross section of alteration for holes TER10-07 and TER10-08. 

Figure 10.16 Cross section of Au assays for holes TER10-07 and TER10-08. 

84



11 SAMPLE PREPARATION, ANALYSIS AND SECURITY 

11.1 Arcopunco (Buenaventura) 

There is no description of the core sampling protocol, sample preparation, analysis or QA-QC in 

the Buenaventura drill reports (Meza et al., 1998; Meza & Camero, 1999). Based on core 

observations and assay sheets, it can be seen that the Arcopunco core was cut lengthwise by 

diamond core saw and one half sampled with consecutive sample numbers, with one half 

remaining in the box. The core was sampled in different intervals in different holes of 1.00 m, 

1.50 m or 2.00 m, and varies from 0.32 m to 4.00 m for recovery and geological reasons. The 

average length is 1.58 m. 

Analyses were carried out by Bondar Clegg Bolivia Ltda., Oruro, Bolivia, part of Intertek 

Testing Services. This was an international laboratory that was bought by ALS Chemex (now 

ALS Minerals) in 2001. The preparation and analytical methods are not described but would 

have been by standard industry methods of fire assay and atomic adsorption spectrometer (AAS) 

for gold, and inductively coupled plasma atomic emission spectrometer (ICP-AES) for 

multielements. The Phase 1 report has copies of faxed reports of results for Au50 plus 35 

elements from Bondar Clegg Bolivia Ltda. There are no lab reports in the Phase 2 report. There 

are no assay certificates. The reports have tabulated results for Au, Cu, Pb, Zn, Mo, Co, Bi, As, 

Hg. There are no QA-QC samples. 

Braeval have compiled an Excel spreadsheet of the drill results for Au, Ag (incomplete), As, Cu 

and Mo based on the drill reports. 

The sampling and analyses were carried out by reputable companies. However, the lack of 

documentation of sampling protocols, preparation and analytical procedures, QA-QC, and 

certificates mean that the data do not comply with best industry practise or CIM / NI 43-101 

standards. For this reason, Braeval carried out a program of check sampling to validate the data 

which is described below. 

11.2 Terciopelo (Buenaventura) 

There is no description of core sampling protocol, sample preparation, analysis and QA-QC in 

the Buenaventura drill reports for Terciopelo (Sabastizagal et al., 2010; Calizaya & Torres, 

2010). Buenaventura provided an Excel spreadsheet of QA-QC sample results to Braeval. There 

are no QA-QC samples. Based on core observations and assay sheets, it can be seen that the core 

was cut lengthwise by diamond core saw and one half sampled with consecutive sample numbers 

prefixed by SD, with one half remaining in the box. The core was sampled in 1.5 m or 2.0 m 

intervals, but varies from 0.3 m to 5.3 m for recovery and geological reasons. The average length 

85



is 1.96 m. Core from two holes was examined at the core store. One of the holes, TER10-07, was 

incorrectly sampled from 131.25 m to 194.9 m, where only about 10% of each sample was 

taken, even although the core cut and marked for sampling in widths of up to 3m. 

Core samples from Phase 1 of the Terciopelo drill program were prepared and analyzed by ALS 

Chemex (now called ALS Minerals), Lima. The company is ISO 9001:2008 registered and uses 

ISO 17025:2005 accredited methods, and is independent of Braeval and Cumbrex. 

Sample preparation was to crush the sample to 70% passing -2 mm or better (code CRU-31), 

split the sample using a riffle splitter, and pulverize a 250 g split to 85% passing 75 microns or 

better (code PUL 31). 

Gold was analyzed by fire assay on a 50 g sample and AAS finish (method Au-AA23). 

Multielements were analyzed by aqua regia digestion of a 1 g sample with detection by 

inductively coupled plasma mass spectrometer (ICP-MS) for 48 elements (Ag, Al, As, Ba, Be, 

Bi, Ca, Cd, Ce, Co, Cr, Cu, Fe, Ga, Ge, Hf, In, K, La, Li, Mg, Mn, Mo, Na, Nb, Ni, P, Pb, Rb, 

Re, S, Sb, Sc, Se, Sn, Sr, Ta, Th, Ti, Tl, U, V, W, Y, Zn, Zr) (method ME-MS61). 

Core samples from Phase 2 of the Terciopelo drill program were prepared and analyzed by SGS 

de Peru S.A.C., El Callao, Lima. The company is part of the SGS Minerals Group and is ISO 

9001:2008 registered and uses ISO 17025:2005 accredited methods, and is independent of 

Braeval and Cumbrex. 

The sample preparation method is not stated on the assay certificated. It was probably by the 

standard method of crushing the sample to 75% passing -2 mm or better, split the sample using a 

riffle splitter, and pulverize a 250 g split to 85% passing 75 microns or better (code PRP89), but 

this needs to be confirmed. 

Gold was analyzed by fire assay on a 50 g sample and AAS finish (method FAA515). Samples 

above 200 ppb Au were also analyzed for cyanide-soluble gold (method CSC65F, not described 

in the SGS services brochure). Multielements were analyzed by two acid digestion (nitric acid 

and hydrochloric acid in 2:1 ratio) digestion of a 1 g sample with detection by ICP-MS for 52 

elements (Ag, Al, As, Ba, Bi, Ca, Cd, Ce, Co, Cr, Cu, Fe, Ga, Hg, K, La, Mg, Mn, Mo, Na, Ni, 

P, Pb, Rb, Sb, Sc, Sn, Sr, Th, Ti, Tl, U, V, W, Y, Zn) (method ICM12B). SGS indicate that: 

“Two-acid digestions are the weakest of the digestions and will not attack silicate minerals. As 

such, the leach provides partial results for most elements.” Mercury was analyzed by cold vapour 

and AAS (method CVA14C). 

Buenaventura prepared and analyzed rock and soil samples taken in 2009 at ALS Chemex using 

the same methods as the core samples, with the addition of mercury by cold vapour and AAS 

86



technique (code Hg-CV41). The rock samples collected in 2010 were prepared and analyzed at 

SGS using the same methods as the core samples, but without cyanide-leachable gold. 

The database supplied by Buenaventura contains laboratory certificates in Adobe Acrobat 

format. 

The sampling and analyses were carried out by reputable companies. However, the lack of 

documentation of sampling protocols, preparation and analytical procedures and QA-QC mean 

that the data do not comply with best industry practise or CIM / NI 43-101 standards. It is 

recommended that Braeval carried out a program of check and replicate analyses of core sample 

pulps and coarse rejects in order to validate the data. 

11.2.1 QA-QC 

Buenaventura provided an Excel spreadsheet of QA-QC sample results for the two drill 

programs to Braeval. QA-QC data for the surface rock and soil sampling programs has been 

requested from Buenaventura. The sampling, analysis, and QA-QC protocol has also been 

requested. 

11.2.1.1 CSRM 

The CSRM used were G305-1 and G306-1 supplied by Geostats Pty Ltd., Western Australia 

(www.geostats.com.au). The certificates of the CSRM can be downloaded from their website. 

G305-1 has a certified gold grade of 0.21 ppm ± 0.01 ppm (1 standard deviation). G306-1 has a 

certified gold grade of 0.41 ppm ± 0.03 ppm (1 standard deviation). The CSRM check analytical 

precision and accuracy, and sample switches. The CSRM are monitored by performance gates 

which are graphs with sample number or time on the x-axis and values on the y-axis. There are 

horizontal lines for the recommended value, ± 2 standard deviations (SD) and ± 3 SD. CSRM 

values within ± 2 SD are accepted; an isolated sample above ± 2 SD but below ± 3 SD is 

acceptable but is a warning; two consecutive samples above ± 2 SD are rejected; and any sample 

above ± 3 SD is rejected. 

Buenaventura inserted one CSRM at every 30th sample number in the Phase 1 drill program, and 

at every 36th sample number in the Phase 2 drill program, with a total of 42 CSRM for 1,421 

core samples (3%). The performance of the CSRM are plotted in Figure 11.1 and Figure 11.2 

and show acceptable results, with no difference on the change in laboratories for the Phase 2 

program. 

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Figure 11.1 Performance of CSRM G305-1 for Au for Terciopelo drill samples assayed by Buenaventura. 

Figure 11.2 Performance of CSRM G306-1 for Au for Terciopelo drill samples assayed by Buenaventura. 

11.2.1.2 Blanks 

The nature of the blank used is not described. Blanks were inserted at random intervals in the 

sample sequence for a total of 126 blanks for 1,421 core samples (9%). The performance of the 

blanks for Au, Cu and Mo are plotted in Figure 11.3 to Figure 11.5. Gold is plotted with 

reference to 3 and 5 times the lower limit of detection and the majority of samples are acceptable 

88



with one above the warning limit. Copper is plotted with reference to arbitrary limits of 10 ppm 

and 20 ppm, since the value of the blank is not known, and shows three samples well above the 

upper limit due to sample switch or contamination, which should have been repeated. The rest of 

the results are acceptable. Molybdenum is also plotted with reference to arbitrary limits of 1 ppm 

and 3 ppm and the majority of the samples are accepttable, with one that is well above the uper 

limit which should have been repeated. 

Figure 11.3 Performance of blank for Au for Terciopelo drilling. 

Gap in sequence marks change of laboratory. Samples below lower limit of detection have been plotted at the lower 

limit of detection. 

Figure 11.4 Performance of blank for Cu for Terciopelo drilling. 

89



11.2.1.3 Core Duplicates 

Figure 11.5 Performance of blank for Mo for Terciopelo drilling. 

The data contains 34 pairs of duplicate samples (2.4% of the total core samples) which are 

presumed to be quarter core duplicates of normal half core samples, although there is no 

writtenexplanation of the protocol used. The results for Au, Cu and Mo are plotted in Figure 11.6 

to Figure 11.8 and show a good correlation with little scatter or bias. Mo shows more scatter than 

the other two elements. 

Figure 11.6 Performance of core duplicates for Au at Terciopelo. 

90



Figure 11.7 Performance of core duplicates for Cu for Terciopelo. 

Figure 11.8 Performance of core duplicates for Mo for Terciopelo. 

11.3 Braeval Rock and Core Check Samples 

Braeval have a detailed written protocol manual for core sample collection and QA-QC (Harbort, 

2011). 

Rock chip samples were collected in a cloth or plastic bag, a sample tag inserted and the sample 

number written on the outside in permanent marker pen. The bags were sealed with a draw cord 

in the case of cloth bags, or a cable tie for plastic bags. The sample location was recorded by 

hand-held global GPS and the sample description was written on a sample card. 

91



Samples were put in groups of 5 into sacks for transport. Samples were kept in the custody of the 

Cumbrex geologists in the field, were sent by company vehicle to the company office in Lima, 

and from there were collected by the laboratory with a sample submittal form. 

The Braeval samples were prepared and analyzed by CERTIMIN S.A. (CERTIMIN), Lima. The 

laboratory is ISO 9001:2008 certified and is independent of Braeval and Cumbrex. 

The samples were prepared by drying at 100°C and crushing the entire sample to >90% passing 

‐1.7 mm (10 mesh), then making a 250 g split using a riffle splitter, and pulverizing the split to 

>85% passing -75 microns (-200 mesh) (lab code G0634, method IC-PMM-01). 

CERTIMIN analyzed gold by fire assay with an AAS finish on a 50 g sample (code G0107). 

Multielement analyses of rock samples and the first batch of core samples were done by an aqua 

regia digestion (3:1 hydrochloric acid: nitric acid) with detection by inductively coupled plasma 

atomic emission spectrometer (ICP-AES) for 36 elements (Ag, Al*, As, Ba*, Be*, Bi, Ca*, Cd, 

Co, Cr*, Cu, Fe, Ga*, Hg, K*, La*, Mg*, Mn, Mo, Na*, Ni, P, Pb, S*, Sb, Sc*, Sn*, Sr*, Ti*, 

Tl*, V, W*, Y, Zn, Zr*), in a trace package (code G0145). This is a partial digestion technique 

and the laboratory cautions that digestion and analysis may not be complete for some elements 

marked with an asterisk (*) in the preceding list. 

Samples from the final batch of Retazos rock samples were prepared and analyzed by ALS 

Minerals in Lima. The company is ISO 9001:2008 registered and uses ISO 17025:2005 

accredited methods, and is independent of Braeval and Cumbrex. 

Sample preparation was to crush the sample to 70% passing -2 mm or better (code CRU-31), 

split the sample using a riffle splitter, and pulverize a 250 g split to 85% passing 75 microns or 

better (code PUL 31). 

Gold was analyzed by fire assay on a 30 g sample and ICP-AES finish (method Au-ICP21). 

Multielements were analyzed by aqua regia digestion of a 1 g sample with detection by ICP-AES 

for 35 elements (Ag, Al, As, Ba, Be, Bi, Ca, Cd, Co, Cr, Cu, Fe, Ga, Hg, K, La, Mg, Mn, Mo, 

Na, Ni, P, Pb, S, Sb, Sc, Sr, Th, Ti, Tl, U, V, W, Zn) (method ME-ICP41). This method is 

designed for first pass exploration geochemistry. ALS Minerals caution that “although some base 

metals may dissolve quantitatively in the majority of geological matrices, data reported from an 

aqua regia leach should be considered as representing only the leachable portion of the particular 

analyte.” Silver above the upper limit of detection of 100 ppm was analyzed by aqua regia 

dissolution with AAS finish (method Ag-AA46). 

92



11.3.1 QA-QC 

QA-QC samples were inserted for rock and drill core check samples at the rate of 1 certified 

standard reference material (CSRM) per 20 samples and 1 blank per 20 samples. Field duplicates 

were inserted at irregular intervals. 

11.3.1.1 CSRM 

The CSRM used were: 

• Oreas 152a certified by Ore Research & Exploration Pty. Ltd., Australia for Cu 

(0.385%), Mo (80 ppm), Au (0.116 ppm) and S (0.921%) (www.ore.com.au) -16 samples 

analyzed in the core check samples. 

• Cu 177 certified by WCM Minerals Ltd, Canada for Cu (1.17%), Mo (0.174%), Ag (66 

g/t) and Au (0.79 g/t) (www.wcmminerals.ca) – 1 sample analyzed. 

• Oreas 65a certified by Ore Research & Exploration Pty. Ltd., Australia 

(www.ore.com.au) for Au (0.520 ppm), Ag (7.8 ppm) and Cu (93 ppm) – 5 samples 

analyzed. 

• OxK69 certified by Rocklabs Ltd., Auckland, New Zealand (www.rocklabd.com) for Au 

(3.583 ppm) - 5 samples analyzed. 

The certificates of the CSRM can be downloaded from these companies websites. The CSRM 

check analytical precision and accuracy, and sample switches. The CSRM are monitored by 

performance gates which are graphs with sample number or time on the x-axis and values on the 

y-axis. There are horizontal lines for the recommended value, ± 2 standard deviations (SD) and ± 

3 SD. CSRM values within ± 2 SD are accepted; an isolated sample above ± 2 SD but below ± 3 

SD is acceptable but is a warning; two consecutive samples above ± 2 SD are rejected; and any 

sample above ± 3 SD is rejected. 

For drill check samples, Braeval inserted a CSRM every 20 samples and a blank every 20 

samples. The total inserted was 6.2% CSRM, 5.8% blanks and 8.6% duplicates, for a total of 

21% QC samples. Plots of the performance of the CSRM Oreas 152a for Au, Cu and Mo are 

shown in Figure 11.9 to Figure 11.11 and show acceptable results. 

93



Figure 11.9 Performance of CSRM Oreas 152-a for Au for core check samples (n=16). 

Analyses by CERTIMIN. 

Figure 11.10 Performance of CSRM Oreas 152-a for Cu for core check samples (n=16). 


94



Figure 11.11 Performance of CSRM Oreas 152-a for Mo for core check samples (n=16). 


The performance of CSRM Oreas 65-a for Au, Ag and Cu in rock samples is shown in Figure 

11.12 to Figure 11.14Figure 11.15 and shows good precision and accuracy. 

The performance of CSRM OxK49 for Au in rock samples is shown in Figure 11.15 and shows 

good precision but low accuracy with respect to the recommended value. The recommended 

value of 3.9 ppm Au is much higher than the grade or rock and core samples expected and it is 

not recommended to continue using it. 

Figure 11.12 Performance of Oreas 65-a for Au for Retazos rock samples. 


95



Figure 11.13 Performance of Oreas 65-a for Ag for Retazos rock samples. 


Figure 11.14 Performance of Oreas 65-a for Cu for Retazos rock samples. 


96



11.3.1.2 Blanks 

Figure 11.15 Performance of CSRM OxK49 for Au for Retazos rock samples. 


Braeval initially used a non-certified coarse blank taken from an outcrop behind their Lima 

office (“Old blank”). Its use was discontinued due to containing anomalous values of some 

elements. Two samples were submitted in the first batches of Huancavelica Lithocaps Project 

rock samples from Arcopunco and Retazos. These gave results below detection limit of 0.005 

ppm Au, but with anomalous Cu (108-109 ppm) and Mo (3.7-5.0 ppm). 

It was replaced by a coarse blank called A11-9609 obtained from Target Rocks, Lima (“Target 

Blank”). This was prepared from coarse vein quartz and was accompanied by an assay certificate 

for 20 samples assayed by Activation Laboratories Ltd, Ancaster, Ontario, Canada for gold and 

multielements to certify the sample. The average values are



Figure 11.16 Performance of coarse blank Target for Cu. 


Figure 11.17 Performance of coarse blank Target for Mo. 


The gold values in the Target blank for the Retazos rock samples are shown in Figure 11.18 and 

are below detection limit. The performance of Cu and Mo is shown in Figure 11.19 and Figure 

11.20. Copper has three samples with highly anomalous results which suggests sample 

contamination and should be investigated. Molybdenum is high in the CERTIMIN analyses and 

low in the ALS Minerals analyses, which indicates an analytical issue at CERTIMIN. 

98



Figure 11.18 Performance of coarse Target blank for Au for Retazos rock samples. 

Analyses by CERTIMIN and ALS Minerals. Note change of laboratory for last 3 samples. 

Figure 11.19 Performance of coarse Target blank for Cu for Retazos rock samples. 


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Figure 11.20 Performance of coarse Target blank for Mo for Retazos rock samples. 


11.3.1.3 Field Duplicates 

For the Retazos rock samples, 3 pairs of field duplicates were taken but there are too few 

samples at too low grades to make meaningful statistical plots. 

Braeval took core duplicate samples of the Arcopunco core at intervals of one sample every 10 m 

in 10 holes, resulting in 18 to 33 samples per hole. The check sample length was 30 cm of 

quarter core, being a one half saw cut of the half core in the box, leaving one quarter for 

reference. The samples were taken to Lima for cutting, and the quarter remaining sample was 

later returned to the boxes. A total of 257 check samples were taken in this way. In addition, 22 

quarter core samples of full samples lengths of 1.0 to 3.0 m were taken as core duplicates. 

The Au, Cu and Mo analyses for the full length core duplicates are plotted on scatter plots in 

Figure 11.21 to Figure 11.23. The gold assays show a good correlation, apart from one outlier. 

The copper analyses show a good correlation with more scatter, but this is on both sides of the 

unity line indicating no bias. The molybdenum analyses also show good correlation with some 

outliers. Although this is a small number of samples, it shows that the original analyses are 

reliable. 

100



Figure 11.21 Scatter plot of Arcopunco full length core duplicates for gold. 

Blue line has a slope of 1 for reference. 

Figure 11.22 Scatter plot of Arcopunco full length core duplicates for copper. 


101



Figure 11.23 Scatter plot of Arcopunco full length core duplicates for molybdenum. 


The 30 cm core duplicates (quarter-core samples) are plotted against the original full-length halfcore 

samples, which have an average length of 1.7 m, in Figure 11.24 to Figure 11.26. While it is 

not ideal to compare such different sample sizes, the data show a good correlation, with a good 

deal of scatter as expected due to sampling inhomogeneity. The data are scattered about the unity 

line, indicating no significant sampling or analytical bias. Copper and especially molybdenum 

show more scatter than gold, indicating a more inhomogeneous distribution, perhaps due to 

veinlets. The average of the original gold values is 0.110 ppm, versus the check samples average 

of 0.108 ppm, a difference of -2.1%. The average of the original copper values is 152 ppm, 

versus the check samples average of 165 ppm, a difference of 8.4%. The average of the original 

molybdenum values is 53 ppm, versus the check samples average of 48 ppm, a difference of -7.8 

ppm. The check sampling shows that the original analyses are reliable. 

102



Figure 11.24 Scatter plot of original half-core samples (average length 1.7 m) against check quarter core 

samples (length 30 cm) for gold. 


samples (length 30 cm) for copper. 

103




samples (length 30 cm) for molybdenum. 

11.4 Conclusions 

There is no QA-QC for the Buenaventura Arcopunco data. The check sampling of the 

Arcopunco core by Braeval shows that the original analyses are reliable. 

Buenaventura carried out programs of QA-QC for surface and core sampling at Terciopelo, 

although only the core data has been made available to Braeval. The CSRM and blanks for the 

core show acceptable results. However, the data is incomplete and lacks of documentation of 

sampling protocols, preparation and analytical procedures and QA-QC protocols. It is believed 

that this data exists and Braeval have requested it in order to validate the data. At present the data 

supplied is insufficient to comply with CIM / NI 43-101 standards. It is recommended that 

Braeval carried out a program of check and replicate analyses of core sample pulps and coarse 

rejects in order to validate the data. 

Braeval has a QA-QC program that meets standard industry practise. The following 

recommendations are made: 

• Analyses should be carried out at ALS Minerals or other international certified 

laboratory. 

104



• The use of the Target Blank should be discontinued, and a new coarse blank used 

(Cumbrex have already prepared two types of coarse blank); 






105



12 DATA VERIFICATION 

The author has verified the data used upon in this report by visiting the properties and revising 

drill core from Arcopunco and Terciopelo to confirm the geology and mineralization, by carrying 

out independent check sampling, and by revising the QA-QC and assay certificates. 

The author took 11 chip and grab samples of mineralization exposed on surface at several 

locations at Arcopunco and Terciopelo. The samples were collected in plastic bags, a sample 

number was inserted, and the bag was sealed with a cable tie. The samples were kept in the 

author’s custody, and were delivered to ALS Minerals laboratory in Lima for preparation and 

analysis. The sample descriptions and summary of results are shown in Table 12.1 and the assay 

certificate number LI12236034 is given in Annex 1. One coarse blank (Cumbrex blank) and one 

CSRM were inserted for QA-QC and returned acceptable results. 

Sample preparation was by drying in an oven at a maximum temperature of 60°C, fine crushing 

of the sample to 70% passing -2 mm or better (code CRU-31), sample splitting using a riffle 

splitter, and pulverizing a 250 g split to 85% passing 75 microns or better (code PUL 31). 

Gold was analyzed by fire assay of a 30 g sample split with detection by ICP-AES with a 

detection range of 0.001 to 10 ppm (code Au-ICP21). 

Multielements were analyzed by a four acid “near-total” digestion of a 1 gram sub-sample with 

detection by ICP-MS and ICP-AES for 48 elements (Ag, Al, As, Ba, Be, Bi, Ca, Cd, Ce, Co, Cr, 

Cu, Cs, Fe, Ga, Ge, Hf, In, K, La, Li, Mg, Mn, Mo, Na, Nb, Ni, P, Pb, Rb, Re, S, Sb, Sc, Se, Sn, 

Sr, Ta, Te, Th, Ti, Tl, U, V, W, Y, Zn, Zr) (code ME-MS61m). Mercury was analyzed by cold 

vapour and AAS (method Hg-CV41). 

The independent check samples from Arcopunco have grades of 0.048 to 0.229 ppm Au, 0.15 to 

0.39 ppm Ag, 52.7 to 4670 ppm As, 22.7 to 345 ppm Cu, 0.05 to 0.55 ppm Hg, 16.8 to 283 ppm 

Mo, 103 to 1995 ppm Pb and one of 2.23% Pb, 1.42 to 4.44% S, 4.4 to 114.5 ppm Sb and 15 to 

182 ppm Zn. Gold, Ag, Cu, Hg and Sb are weakly anomalous, As, Mo, Pb and S are strongly 

anomalous, and Zn is low. Two field duplicate chip samples taken where an original painted 

sample number existed on the rock gave similar results to the original sample, including weakly 

anomalous gold (0.23 ppm vs 0.17 ppm; 0.15 ppm vs 0.18 ppm) and strongly anomalous As 

(4670 ppm versus 1423 ppm; 1760 ppm vs 3168 ppm) and Pb (2.23% vs >1%; 1995 ppm vs 

1216 ppm). The results are listed in Table 12.2. Variations are considered to be geological as the 

original sample positions were not marked on the rock in order to be able to duplicate the 

samples exactly. 

106



The independent check samples from Terciopelo have grades of



Sample Project Easting Northing Elevation Au ppm Ag ppm As ppm Cu ppm Hg ppm Mo ppm Pb ppm S % Sb ppm Zn ppm Description 

110701 Arcopunco 495873 8558858 5041 0.104 0.34 118.5 345 0.28 16.75 186 3.26 4.38 28 

110702 Arcopunco 495888 8558894 5060 0.103 0.21 62.8 105 0.04 28 103 4.44 5.17 54 

110703 Arcopunco 495953 8558878 5075 0.229 0.15 4670 39.2 0.05 283 22300 2.85 114.5 182 

110704 Arcopunco 495953 8558878 5075 0.152 0.16 1760 25 0.07 157.5 1995 1.52 75.4 17 

110705 Arcopunco 495899 8558813 5037 0.072 0.39 2640 136.5 0.55 23 922 3.46 9.94 108 

110706 Arcopunco 495895 8558810 5037 0.159 0.4 113 71.2 0.13 6.95 454 1.66 9.66 67 

110707 Arcopunco 497019 8558683 4840 0.048 0.32 52.7 22.7 0.21 11.7 231 1.42 16.5 15 

110708 Terciopelo 495960 8570255 4917



110712 Terciopelo 494921 8569782 4765



13 MINERAL PROCESSING AND METALLURGICAL TESTING 

No metallurgical testing has been carried out on the Huancavelica Project. 

14 MINERAL RESOURCE ESTIMATES 

There are no mineral resource estimates for the Huancavelica Lithocaps Project that are 

compliant with the current CIM standards and definitions required by the Canadian NI 43-101 

“Standards for Disclosure of Mining Projects”. 

15 MINERAL RESERVE ESTIMATES 

Not applicable to this report. 

16 MINING METHODS 


17 RECOVERY METHODS 


18 PROJECT INFRASTRUCTURE 


19 MARKET STUDIES AND CONTRACTS 


20 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR 

COMMUNITY IMPACT 


110



21 CAPITAL AND OPERATING COSTS 


22 ECONOMIC ANALYSIS 


23 ADJACENT PROPERTIES 



The Huancavelica mining district lies to the north, famous for the Santa Barbara mercury mine, 

and the Castrovirreyna mining district, exploited for silver, lead and zinc, is located to the 

southwest. There are a number of operating mines and projects with resources in the district. 

The Caudalosa Chica Mine is located 7 km south east of the Arcopunco Project at an altitude of 

4,500 m to 4,200 m. It is owned by Compañía Minera Caudalosa S.A., a private Peruvian 

company, which does not publish resources or information. It is an underground mine operation 

producing concentrates of lead, zinc and silver. 

The Recuperada Mine, owned by Buenaventura, is located 11.5 km south east of the Arcopunco 

Project. The drill core from the Arcopunco Project is stored here. The camp is at an altitude of 

about 4,280 m. The underground mine workings reach down to an elevation of 3,955 m. The 

geology comprises veins of Ag-Pb-Zn and Ag-rich veins in limestone. The proven and probable 

reserves at 31 December 2011 were 114,710 short tons (st) grading 7.79 oz/st Ag, 5.20% Pb and 

8.11% Zn (reported to United States Securities and Exchanges Commission (SEC) standards). 

The total estimates non reserve material (NRM) was 52,005 st grading 11.6 oz/st Ag, 2.0% Pb 

and 3.7% Zn. The plant has a processing capacity of 600 short tons per day (stpd). In 2011 the 

plant treated 112,450 st of ore grading 4.67 oz/st Ag, 3.07% Pb and 3.77% Zn to produce 

498,424 oz Ag, 3,212 st Pb and 3,581 st Zn in concentrates (sources: Buenaventura Memoria 

Anual 2011; SEC Form 20-F Annual Report, 31 December 2011). 

The Pico Machay high sulfidation epithermal gold deposit is located 18 km west of the 

Arcopunco Project. It was discovered by Newcrest Mining, an Australian mining company, in 

1998 and is now owned by Pan American Silver Corporation, a Canadian mining company. The 

project is described in a NI 43-101 report by Kelso (2006). As of 31 December 2011 it had 

measured resources of 4.7 Mt grading 0.91 g/t Au containing 137,500 oz Au, indicated resources 

of 5.9 Mt grading 0.67 g/t Au containing 127,100 oz Au, and inferred resources of 23.9 Mt 

111



grading 0.58 g/t Au containing 445,700 oz Au (source: Pan American Silver Corporation Annual 

Report, 2011; resources reported to CIM / NI 43-101 standards). 

The San Genaro mine, owned by Castrovirreyna Compañía Minera S.A., a Peruvian mining 

company listed on the Lima Stock Exchange, is located 20 km south west of the Arcopunco 

Project in the Castrovirreyna district. The proven and probable reserves as of 31 December 2010 

were 3,049,307 st grading 3.67 oz/st Ag, 0.02 oz/st Au, 0.86% Pb and 1.06% Zn (source: 

www.castrovirreyna.com): these are in-house company reserve estimates that do not conform to 

NI 43-101 standards and are quoted here for information purposes only. The mine production 

capacity is 750 stpd. Production in 2011 was 9,939 t of concentrates grading 120.47 oz/t Ag, 

10.13 g/t Au, 5.83% Pb and 5.09% Zn and containing 1,197,338 oz Ag and 3,237 oz Au (source: 

Estados Financieros 31 December 2011). 

The Julcani mine, owned by Buenaventura, is located 29 km north east of the Arcopunco Project. 

The proven and probable reserves at 31 December 2011 were 258,556 st grading 18.5 oz/st Ag, 

0.021 oz/st Au, 2.0% Pb and 0.46% Cu (reported to SEC standards). The total estimated non 

reserve material (NRM) was 332,725 st grading 19.3 oz/st Ag, 0.014 oz/st Au, 2.0% Pb and 

0.3% Cu. The plant has a processing capacity of 400 stpd. In 2011 the plant treated 140,300 st of 

ore grading 18.62 oz/st Ag, 0.022 oz/st Au, 1.617% Pb and 0.31% Cu to produce 2,428,330 oz 

Ag, 2,051 oz Au, 2,065 st Pb and 394 st Cu in concentrates (sources: Buenaventura Memoria 

Anual 2011; SEC Form 20-F Annual Report, 31 December 2011). 

The resources and reserves quoted in this section have not been independently verified by the 

author. They are quoted for information purposes and are should not be taken as an indication of 

the potential of the Huancavelica Lithocaps Project. 

24 OTHER RELEVANT DATA AND INFORMATION 

There is no other relevant data and information to be reported. 

112



25 INTERPRETATION AND CONCLUSIONS 

The author has reviewed the Huancavelica Lithocaps Project and has verified the data used in 

this report by visiting the property and reviewing drill core to confirming the geology and 

mineralization, by taking check samples, and by review of the QA-QC. The author concludes 

that: 

• There is no QA-QC for the Buenaventura Arcopunco data. The check sampling of the 

Arcopunco core by Braeval shows that the original analyses are reliable. 

• Buenaventura carried out programs of QA-QC for surface and core sampling at 

Terciopelo, although only the core data has been made available to Braeval. The CSRM 

and blanks for the core show acceptable results. However, the data is incomplete and 

lacks of documentation of protocols. It is believed that this data exists and Braeval have 

requested it. At present the data supplied is insufficient to comply with CIM / NI 43-101 

standards. It is recommended that Braeval carried out a program of check and replicate 

analyses of core sample pulps and coarse rejects in order to validate the data. 

• The exploration programs are well planned and executed and supply sufficient 


• Sampling, sample preparation, assaying and analyses carried out by Braeval have been 

carried out in accordance with best current industry standard practices and are suitable to 

plan further exploration; 


procedures. 

The main target of the exploration programs is for porphyry copper ± gold ± molybdenum ± 

silver mineralization concealed beneath lithocaps of advanced argillic alteration. 

At the Arcopunco Project the advanced argillic alteration overprints porphyry-type quartz 

veining and a program of deep drilling is recommended. 

At the Terciopelo Project, one drill hole intersected a porphyry system with potassic and phyllic 

alteration beneath the lithocap, and demonstrates the validity of the exploration model. The hole 

had no significant mineralization and had a very high pyrite/chalcopyrite ratio. A program of 

deep drill holes is recommended to explore for the early mineral porphyry intrusions and zones 

with higher chalcopyrite/pyrite ratios and mineralization. 

High sulfidation epithermal gold mineralization in zones of vuggy silica alteration in the 

lithocaps constitutes a second target. This was the main target tested by previous drill programs 

but there may be untested areas, for example in the rhyolite dome or flows at Terciopelo. 

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The third target is polymetallic veins, vein breccias, carbonate replacement bodies and skarns 

peripheral to the lithocaps and porphyry-epithermal centers. Several such anomalies have been 

found in reconnaissance exploration of the Retazos Project. 

There are no known significant risks or uncertainties that could reasonably be expected to affect 

the reliability or confidence in the exploration information. The main uncertainties in future 

exploration programs are geological risk. 

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26 RECOMMENDATIONS 

A two stage exploration programme is recommended for the Huancavelica Lithocaps Project. 

Stage 1 is surface exploration to define drill targets and Stage 2 is drilling. The Stage 2 program 

is not dependent on the results of the Stage 1 program for Arcopunco and Terciopelo, but is 

dependent on the Stage 1 program for Retazos. Environmental permitting for Stage 2 should be 

started during Stage 1. 



o Map quartz veinlet distribution, veins, and alteration in the field to define and 

interpret the hydrothermal system. 

o Additional channel sampling required (e.g. breccia not sampled). 

o Ground magnetic survey to map magnetite-destructive advanced argillic and 

phyllic alteration, and possible magnetite associated with a gold-rich porphyry 

system. 

o Induced polarization survey to define disseminated and veinlet sulfides at depth in 

a porphyry system. 


o Field mapping to define the volcanic system (e.g. rhyolites and younger, postmineral 

volcanic rocks have not been mapped) and zonation of alteration. 



o Additional rock sampling (such as the rhyolite dome). 

o Re-log all drill holes, especially the deep ones, to define alteration and vectors to 

the porphyry target. 

o Check sampling of pulps and rejects of the drill program. 

• Retazos: 

o The objective of the next stage is to interpret hydrothermal systems and volcanic 

systems as vectors to identify and prioritize targets. 

o Compile maps of geology, alteration and geochemistry. 



o Use high resolution Ikonos or similar satellite imagery for mapping with field 

checking. 

o Geochemical sampling of rocks and soils. 




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• Retazos: 

o Drilling of targets to be defined, 10 holes x 400 m for 4,000 m. 

The estimated costs for the Stage 1 program are US$766,000 and the estimated time to carry out 

the program is 12 months. The estimated costs are given in Table 26.1. 

Item US$ 

Geological mapping, geochemical sampling, data and image 

interpretation 

200,000 

Rock chip and soil sampling assays (500 samples) 9,000 

Check sampling Terciopelo drill holes (150 samples) 3,000 

Ground geophysical survey (magnetic, IP) and interpretation 250,000 

Satellite imagery, hyperspectral interpretation 100,000 



Transportation 20,000 




Total 766,000 

Table 26.1 Estimated budget to carry out Stage 1 exploration program at the Huancavelica Lithocaps 

Project. 

The estimated costs for the Stage 2 exploration program are US$9,896,000 and are listed in 

Table 26.2. The estimated time to carry out the program is 16 months, including 12 months of 

drilling. The drilling programs can be done sequentially on the three project areas. 

Item US$ 

Diamond drilling (18,000 m at $300 per meter contractor cost plus 


6,912,000 

Assays (9,000 samples plus 10% QAQC at $45 per sample, plus 


559,000 

Geological support 500,000 




Transportation (mob-demob rigs, transport personnel, samples, core 

boxes). 

200,000 

Environmental permit and monitoring 200,000 



Total 9,896,000 

Table 26.2 Estimated budget to carry out Stage 2 exploration program at Huancavelica Lithocaps Project. 

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The total cost of the Stage 1 and Stage 2 exploration programs is US$10,662,000 and the 

estimated time to completion is 24 months, based on carrying out Stage1 and applying for the 

environmental permit for drilling at the same time, followed by execution of the Stage 2 

program. 

It is recommended that the current QA-QC program be maintained. Specific recommendations to 

improve this are: 

• Use the new Cumbrex coarse granite blank; 






117



27 REFERENCES 

Andrade, R. E., 1998. Estudios petrograficos de 02 muestras y estudio mineragrafico de 02 

muestras del prospecto Arcopunco, Proyecto Huancavelica. Report by Buenaventura 

Ingenieros S.A. for Cia. De Minas Buenaventura S.A., June 1998, 19 p. (Annex to Meza et 

al., 1998). 

Calizaya, J. & Torres, P., 2010. Proyecto Terciopelo, Informe Anual 2010. Report by Cia de 

Minas Buenaventura, 28 p. 

Cánepa, C., 2012. Estudio microscopía óptica (17 secciones delgadas y 17 secciones pulidas). 

Report for Cumbres Exploraciones SAC, April 2012, 84 p. 

Carrizales, H., 2012. Reporte Técnico, Proyecto Arcopunco, Relogueo Sondajes Historicos. 

Report by Cumbres Exploraciones SAC, Lima, 25 March 2012, 40 p. 

Canchaya, S., 2010. Reporte de Estudio Microscópico de Cinco Muestras, Proyecto Terciopelo. 

Internal report by Cia. De Minas Buenaventura SAA, February 2010, 9 p. 

Canchaya, S., 2011. Reporte de Estudio Microscópico de Tres Muestras, Proyecto Terciopelo. 

Internal report by Cia. De Minas Buenaventura SAA, January 2011, 8 p. 

Cuellar, J. C. & Mayta, P., 2012. Evaluacion de las concessiones Retazos, Provincias de 

Huancavelica y Castrovirreyna, Departamento de Huancavelica. Report by Cumbres 

Exploraciones SAC, Lima, July 2012, 39 p. 

Guerrero, D., 2012. Protocolo de preparación de muestras certificadas tipo blanco. Report by 

Cumbres Exploraciones SAC, Lima, June 2012, 32 p. 

Gustafson, L. B., Vidal, C. E., Pinto, R. & Noble, D., 2004. Porphyry-epithermal transition, 

Cajamarca region, Northern Peru. In: Sillitoe, R. H., Perelló, J. & Vidal, C. E. (eds.) Andean 

Metallogeny: New discoveries, concepts and updates. Special Publication of the Society of 

Economic Geologists, No. 11, p. 279-299. 

Harbort, T., 2011. Guidelines for the Development of Geochemical Assay Quality Control 

Products. Procedure Manual for Talisker Exploration Services Inc., Toronto, December 

2011, 39 p. (a company related to Braeval). 

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Khashgerel, B. E., Kavalieris, I. & Hayashi, K. I., 2008. Mineralogy, textures, and whole-rock 

geochemistry of advanced argillic alteration: Hugo Dummett porphyry Cu-Au deposit, Oyu 

Tolgoi mineral district, Mongolia. Mineralium Deposita, vol. 43, p. 913-932. 

Kelso, I., 2006. Independent Technical Report, Pico Machay Gold Deposit, Huancavelica 

Province, Peru. NI 43-101 report by Caracle Creek International Consulting Inc., Sudbury, 

Ontario, Canada for Absolut Resources Corp., Toronto, Ontario, Canada, 27 October 2006, 

98 p. 

Meza, J. & Camero, D., 1999. Proyecto Exploraciones Huancavelica. Resultados de la 2a 

Campaña de Perforacion Diamantina - Prospecto Arcopunco. Report by Buenaventura 

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de la 1a Campaña de Perforacion Diamantina - Prospecto Arcopunco. Report by 

Buenaventura Ingenieros S.A. for Cia. De Minas Buenaventura S.A., June 1998, 203 p. 

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Huachocolpa, Hoja 27-n. Lima, Peru, INGEMMET Boletin No. 63, 144 p. 

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28 CERTIFICATE OF AUTHOR 

I, Stewart D. Redwood, hereby certify that: 

1. I am a Consulting Geologist with address at P.O. Box 0832-1784, World Trade Center, 

Panama City, Republic of Panama. 

2. I am the author of the technical report titled “NI 43-101 Technical Report for the 

Huancavelica Lithocaps Gold Project, Department of Huancavelica, Peru” (the Technical 

Report) dated 14 January 2013. 

3. I graduated from Glasgow University with a First Class Honours Bachelor of Science 

degree in Geology in 1982, and from Aberdeen University with a Doctorate in Geology 

in 1986. 

4. I am a Fellow of The Institute of Materials, Minerals and Mining (FIMMM), Number 

47017. 

5. I have 30 years experience as a geologist working in mineral exploration, mine site 

geology, mineral resource and reserve estimations and feasibility studies on precious and 

base metal deposits in Latin America, the Caribbean, North America, Europe, Africa, 

Asia and Australia, including epithermal and porphyry deposits. 

6. I have read the definition of “Qualified Person” set out in National Instrument 43-101 (NI 

43-101) and certify that by reason of my education, affiliation with a professional 

organization (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 visited the project and core stores on 2 to 7 October 2012. 

8. I am responsible for all sections of the Technical Report. 

9. I am independent of the issuer applying all of the tests in Section 1.5 of NI 43-101. 

10. I have had no prior involvement with the property. 

11. I have read NI 43-101 and the Technical Report has been prepared in compliance with 

that instrument. 

12. As of the date of the certificate, to the best of my knowledge, information and belief, the 

Technical Report contains all scientific and technical information that is required to be 

disclosed to make the Technical Report not misleading. 

13. I consent to the filing of the Technical Report with any stock exchange and other 

regulatory authority and any publication by them, including electronic publication in the 

company files on their websites accessible by the public, of the Technical Report. 

Stewart D. Redwood 


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ANNEX 1: CERTIFICATE OF ANALYSIS OF CHECK SAMPLES 

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NI 43-101 TECHNICAL REPORT - BRAEVAL - Mining Corporation

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