The mineralization identified to date on the property is consistent with a supergene enrichment
blanket associated with an Andean-type copper-molybdenum porphyry system.

The most important mineralization encountered to date on the property is a tabular body of fracturecontrolled and disseminated chalcocite and chalcopyrite with minor molybdenite-coated fractures overlain by a barren, leached zone of variable thickness. The tabular zone strikes 50 degrees and dips 20 degrees to the east over an area 1.2 kilometres long and 1.2 kilometres wide. The supergene chalcocite mineralization has a true thickness of 40 to 80 metres. Associated with the chalcocite mineralization is weak sericitization, chloritization, and silicification of arenite and quartzite. The strongest chalcocite mineralization is associated with brittle faults. Below the chalcocite mineralization, low-grade disseminated chalcopyrite, bornite, and molybdenite mineralization occurs. Altered, weakly-mineralized porphyritic felsic intrusives are associated with the hypogene mineralization. Unaltered, unmineralized porphyritic dikes cut the mineralization.

The most economically significant mineralization encountered to date on the property is fracturecontrolled and disseminated chalcocite. The chalcocite occurs as:

- Sooty or scaly coatings 1 millimetre wide, filled to partially open fractures.

- Sooty coatings on rock fragments and rock flour encountered in intense fracture or fault zones over widths of 1 to 10 metres.

- Selvages on sub-centimetre width quartz veinlets.

- Occasionally as disseminated grains or coating disseminated grains of primary chalcopyrite in zones of more intense fracturing and silicification.

Chalcocite is enriched in the secondary sulphide enrichment zone.

Molybdenite occurs in fine fractures and as grains within sub-centimetre wide quartz veinlets in the
primary sulphide, secondary sulphide and Main Porphyry.

Chalcopyrite occurs as disseminated grains and surface coatings along fractures and within quartz
veinlets. Disseminated grains were also observed. Chalcopyrite in concentrations of up to 1% occurs
in the Main Porphyry and in primary hypogene sulphide zones.

The mining operations proposed for the Antilla project are typical of open pit, truck-and-shovel mining methods for year round operations in a mountainous terrain.

The mine operations are organized into three departments: mine maintenance, technical services, and direct mining. Mine maintenance accounts for the supervision and planning of the mine maintenance activities. Technical services accounts for the technical support from mine engineering, planning, geology, and surveying functions. Direct mining accounts for the drilling, blasting, loading, hauling, and pit maintenance activities in the mine.

A conceptual level mining design, production schedule, and cost model were developed for the Antilla project. A series of pit optimizations were run using the resource block model, applying a range of metal prices and estimated costs for mining and processing. An ultimate pit limit was chosen from the optimized shell and the potentially mineable portion of the resource was estimated within the ultimate pit.

The proposed project includes a flotation processing plant with a design capacity of 40,000 tonnes/day. According to the conceptual production schedule, Supergene mineralization would be processed during the first half of the 24-year mine life with a transition after Year 11 to predominantly Primary Sulphide feed. Most Leach Cap material will be stockpiled until the end of the mine life for separate processing though the plant.

A possible process involves the following stages:
• Crushing/grinding to a P80 size of 100µm
• Bulk flotation of a copper-molybdenite concentrate
• Regrinding of the bulk concentrate prior to cleaning
• Conditioning with NaHS prior to copper molybdenite separation
• Three or more stages of molybdenite cleaning
• Tailings from molybdenite separation circuit is the final copper concentrate
• Thickening of both concentrates
• Filtering of both concentrates
• Drying of molybdenite concentrate before bagging
• Tailings thickening prior to deposition in the tailings storage facility

The run-of-mine mineralized material will feed a gyratory crusher ahead of a conventional SAG and ball mill grinding circuit. A bulk copper-molybdenum concentrate will be recovered in rougher and scavenger flotation stages. Following regrinding, molybdenum will be separated from the bulk concentrate in three or more stages of cleaner flotation. Both concentrates will be thickened and filtered while the tailings will be thickened prior to being pumped to the tailings storage facility.

For the Supergene and Primary Sulphide mineralization domains, the copper concentrate will grade 20% to 30% copper, free of penalty elements and with precious metal content below payable levels. The molybdenum concentrate will grade 32% to 40% molybdenum and future testwork will determine if further processing is required to reduce the copper and zinc levels. Both concentrates will be transported off site via truck with the copper concentrate proposed to be shipped out of the port of Marcona in Nazca province.