Corihuarmi Gold Mine

About the Project

The Corihuarmi gold mine (“Corihuarmi”) is located at nearly 5,000 meters above sea level, in the Andes Mountains of Central Peru, straddling the regions of Lima, Junín and Huancavelica, approximately 160 km southeast of Peru’s capital city, Lima. Corihuarmi is comprised of 14 concessions totaling approximately 9830 hectares.

Corihuarmi has been in production since 2008. An initial National Instrument 43-101 (“NI 43-101”) compliant Feasibility Study completed in April 2006 (the “2006 Technical Report”) provided for a small mine with a life span of only four years, with total mineral reserves of 144,000 ounces of gold.

The mine life has been extended twice since the 2006 Technical Report, with the last extension completed by Mining Plus in 2018 (the “2018 Technical Report”). The 2018 Technical Report provided for a 2.8-year mine life that expired in October 2020. Between 2008 and 2020, Corihuarmi produced more than 366,827 ounces of gold.

Gold mineralization at Corihuarmi is mined by open pit methods. In 2020, the average grade produced was 0.25 grams per tonne (“g/t”) gold, with 22,593 ounces of gold recovered through a leaching process.

Geology and Mineralisation

The Property is located at the northern extent of the southern Peru Au-Ag epithermal belt. Mineralisation identified at the Property is of a high-sulphidation (HS) epithermal type hosted in volcanic rocks close to the Chonta fault, a regionally significant North-northwest trending structure.

The Chonta fault is a major geological break which separates Cenozoic volcanic deposits from folded Paleozoic sediments. Zoned alteration and mineralisation are centred on dacitic and rhyodacitic domes intruded close to the Chonta Fault at its intersection with subordinate Northeast faults.

2021 Mineral Resource Estimate

Based on the results of the 2021 Mineral Resource Estimate, Mining Plus has calculated Measured and Indicated Resources of 13.83 million tonnes at Corihuarmi. The Company expects to continue producing gold at an average grade of 0.21 g/t to August 2024.

Mineral Resources

The update of the resources has been carried out using the support data generated by the site. Gold grade was estimated into the block model using Reverse Circulation Drill holes (RC), Diamond Drill holes (DDH) and supported with rotary air drilling called long holes drilled in areas with limited assay information, and it was estimated applying industry-standard estimation methodology. Mineral resources are reported above a reasonable cutoff grade based on production costs and metallurgical recovery from the Corihuarmi Gold Mine.

In calculating the mineral resources, Mining Plus used a cut-off grade of 0.1 g/t Au inside the latest pit design for 2021, along with a low strip ratio. Both the pit design and cut-off grade were calculated using a gold price of US $1,500.

The mineral resources have been estimated in accordance with widely accepted CIM Estimation of Mineral Resource and Mineral Reserves Best Practices Guidelines (November 2019) and are reported in accordance with NI 43-101. The mineral resources are summarized as follows at an effective date of February 28, 2021.

Resource Category

Tonnes (Mt)

Au (g/t)

Au Ounces (kt)

Measured

8.00

0.20

51.1

Indicated

5.83

0.22

41.2

Measured & Indicated

13.83

0.21

92.3

Inferred

0.2

0.2

1.50

  1. Mineral resources are not mineral reserves and have not demonstrated economic viability.
  2. All figures are rounded to reflect the relative accuracy of the estimates.  Minor discrepancies may occur due to rounding to appropriate significant figures.
  3. All tonnages reported are dry metric tonnes and ounces of contained gold are troy ounces.
  4. The Mineral Resource was estimated by Ms. Maria Muñoz, MAIG, QP(Geo), Independent Qualified Person under NI 43-101, of Mining Plus Consultants who takes responsibility for it.
  5. The Mineral Resource is sub-horizontal, outcropping or close to surface, and has been proven to be mineable by open pit methods with a low strip ratio.
  6. The Mineral Resource is reported inside a pit designed with a cut-off grade of 0.1 g/t gold, estimated using a gold price of US $1500; the cut-off assumed is slightly higher than the marginal cut-off.
  7. The metal recovery assumed was 70.6% for gold, and total operating costs of US$ 4.51 /t.
  8. The resources have been estimated with RC and DDH drillings and supported with rotary air drilling called long holes drilled in areas with limited assay information.
  9. Drilling results as of end of February 2021 are included.
  10. Mining Plus is not aware of any environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues that could materially affect the potential development of the Mineral Resource Estimate.

In the opinion of Mining Plus, the estimated resources represent the metal content in-situ close to the surface and easily mineable in the current Mine operation area.

Information on this website related to the Corihuarmi Mineral Resources has been reviewed and approved by Geologist Maria Muñoz, MAIG QP(Geo). Ms. Muñoz is a full-time employee of Mining Plus Peru SAC and is an independent Qualified Person (“QP”) as defined by the NI 43-101.

For further information regarding the Mineral Resource Estimate completed for Corihuarmi, please refer to the 2021 Technical Report.