Marimaca is located in an IOCG district of vein deposits combined with Fe bearing structures and the typical "manto-type" deposits in volcanic rocks.

The blanket of Marimaca has a NW orientation and an inclination to the NE due to the control of late to post mineralization fault systems. Its average vertical thickness is 280 m.

The sub-parallel planar structure zone, of penetrative condition and persistent is the most important structural trait of Marimaca.

The fractures that determine the bands or “pseudo-stratification”, are disposed with an azimuth 360° to 10-20°, with dips of 45 to 50° east. There is a variation in strike across the area; in the south section of Marimaca, with an azimuth predominance of 020-030°; the central section, 360°; and the north section, in which the strike changes to 010-020°, always with dips towards the east. The fractures that limit the bands are spaced from centimeters to several meters and may or may not have filling of gouge type material, clay and limonite mixtures. Some of the fractures that limit the bands are definitely faults, with fillings of several centimeters of thickness. These fractures are persistent along strike, reaching several hundred meters.

The primary controls to mineralization are the sub-parallel fracture zones which also control the thickness of the supergene blanket between the HW (hanging-wall) and FW (footwall) limits. A second control are the main NW fracture zones, described as La Atomica Fracture Zone (LAFZ), which controls its development with an NW orientation and limit the extension towards the SW. Within this volume, some mineralogical changes are controlled by the arrangement of dikes, feeders and the late WNW to EW faults.

The oxide blanket results from the sum of superimposed sub-parallel fractures, in which the mineralogy zones and copper grades vary in relation to the combination of the above mentioned controls.

The mineralized blanket has a NW orientation for about 800 m and limited by the LAFZ. Its width varies between 450 m in the NW to 100 m in the SE with an average of 200 m. The base has been defined as the upper limit of the dominant sulfides zone, recognized as the Top of Sulfide (TS). It is an irregular surface that can reach a depth of 300 m at the SW margin, controlled by the LAFZ. The shape of the TS also shows irregularities produced by the feeders along the NE direction. This surface is not the lower limit for the supergene processes which persists to over 420 m in drill holes with supergene sulfides, mainly chalcocite, mixed material (chalcocite, lesser covellite and copper oxides, mostly brochantite) and some green oxides.

The copper oxides are dominated by brochantite, chrysocolla and wad, with minor atacamite, tenorite, almagre and gerhardite. They occur both disseminated and impregnating fractures, associated with some limonite, and abundant hematitegoethite. The brochantite and chrysocolla are distinguished by their habits and colors, wad appears black to dark brown as a mix of materials recognized as “black oxides”. It is normal to find the brochantite nucleus surrounded by a chrysocolla halo.

In some less altered supergene sections, two to three levels of remnant mixed and enriched zones can be observed, indicating paleo-levels of underground water that could explain Marimaca’s oxide blanket evolution. The source of pyrite to generate the necessary free acid could come from the nucleus of chalcopyrite mineralization and pyrite that dominates the feeders and the upper part of the HW.

The solubility ratios were validated by statistics data to estimate the qualities of the mineral zones. For example, the average solubility in the brochantite zone is 80%, chrysocolla 78% and wad 44%. These values have little dispersion and it confirms the natural breaks in mineralogy and the consequent definition of mineral zones.

Gangue is mainly composed of limonite, especially goethite and hematite and some jarosite. Copper bearing limonite has been specifically observed in some almagres. Zones of calcite were not observed but it has been logged in drill holes in localized segments, presenting disseminations and calcite veining with other carbonates. Analysis of the acid consumption in pulps shows average values of 46 k/t for brochantite, 49 k/t for chrysocolla and 36 k/t for wad. There is a low dispersion value and more than 2,000 leached and barren samples have an average consumption between 37 a 39 k/t. There is a possibility that those averages correspond to the rock background (gangue) consumption due to its higher ferromagnesian content.

In a road cut in the northern part of the property, which crosses the entire mineralized profile, a continuous sample of rock chips was collected along 150 m, with samples every 2 m. The results confirmed the extension of the mineralization between the structures of high grade, exploited by small miners. The average of 150 m of the sample delivered 0.36% CuT and 0.24% CuS that included 85 m with an average of 0.48% CuT and 0.32% CuS. A second road cut sample over 30 m averaged 0.53% CuT and 0.43% CuS.

The first aspect of interest is the high Cu background of the area. The average of all samples is 574 ppm Cu. The range of the anomaly containing the main mineralized body exposed on the west side of the property is > 200 ppm Cu. The contents > 1,000 ppm (> 0.1% Cu) confirm the extensions of surface mineralization. The anomalies of the same range in the eastern part are restricted to smaller structures, and a frequency increase is noted to the west.

The final pit design was based on the economic shell generated at $3.0 USD/lb. This shell was smoothed, and narrow bottoms were eliminated, adding ramps and safety berms where deemed necessary, to obtain an operative final pit with an overall slope angle between 42 to 52 degrees.

The final pit is 755 m long in the SE-NW direction and up to 490 m wide in the NE-SW direction. Two pit bottoms can be identified, from north to south at 900 mRL, and 920 mRL. The total area disturbed by the pit is about 30 hectares.

The road width of 20 m will accommodate the selected 100 t trucks. NCL used a 10% road gradient which is common in the industry for this type of trucks. The current mine plan is designed with 10 m benches stacked to 20 m (i.e. double benching) in the East zone. Mining costs for this report are based on blasting 10 m benches for the waste zones and for the ore.

Additional 20 m wide safety berms were included in the design when the slope height exceeds 150 m, accordingly to the geotechnical recommendations.

NCL designed a set of eight mining phases, or pushbacks were designed by analyzing the Whittle Four-X series of nested shells. Pit bottoms were selected to project them to surface, applying recommended slopes.

The phases 1 to 4 were designed to obtain the first year of production with the less movement material and avoid pre-stripping cost.

Phase 1 targets the ore with the highest grade and lowest strip ratio in the south area, down to 1,090 masl elevation. Phase 2 is in the east area, independent from Phase 1, and goes down to 1,060 masl elevation. Phase 3 is another independent pit in the central/west area, down to 1,120 masl elevation and Phase 4 is the last independent pit in the central/east area, down to 1,140 masl elevation.

Phases 5 and Phase 6 correspond to expansions of Phase 1, 2, 3 and Phase 4, going down to 1,130 and 1,120 masl respectively. Phase 7 corresponds to a concentric expansion of the other phases, down to 1,120 masl and finally Phase 8 is an expansion to the north, down to 1,080 masl.

Ore from Marimaca mine will be transported to Ivan Plant Facilities, to recover the copper by a conventional processing plant, which include crushing, acid agglomeration, leaching, solvent extraction (SX) and electrowinning (EW) processes.

The project includes the following unit operations or facilities:
- Crushing (primary, secondary and tertiary).
- Agglomeration.
- Heap Leaching.
- Solution handling.
- Solvent Extraction.
- Electrowinning.

The Ivan plant has two (2) crushing lines. To satisfy the copper production plan, the expansion of Line 1 was designed, considering the incorporation of a third comminution stage to reach a nominal capacity of 278 t/h, which will feed an existing 1,600 live tons capacity Stock Pile. First stage will work in an open circuit with previous screens and jaw crusher, second stage will also work in open circuit with previous screens and cone crusher. Third crushing stage will have a closed inverse circu ........