The Property is located within a regional fold and thrust belt of predominantly Mesozoic sedimentary rocks intruded by felsic stocks located along faults and cores of anticlinal structures. Sedimentary rocks of Lower Cretaceous age consist of a lower, shallow marine-to-deltaic siliciclastic sequence and an upper sequence of finer grained siliciclastic units.

The oldest rocks on the Property are thinly bedded and laminated mudstones with occasional coal seams of the basal Lower Cretaceous Chicama Formation. This formation is only exposed in valleys and in the cores of anticlines.

Overlying the Chicama Formation is the Goyllarisquizga Group, which is comprised from oldest to youngest of the Chimu, Santa, Carhuaz, and Farrat Formations.

Multiple intrusions have intruded the Cretaceous sedimentary sequence at Shahuindo. Intrusions include rocks described as andesite, dacite porphyry, and intrusion breccia. Compositions vary from diorite porphyry (known as “andesite” in the district) to dacite porphyry, fine-grained dacite porphyry, quartz diorite porphyry, and foliated quartz diorite porphyry. The three intrusive breccia phases are heterolithic breccia with biotite diorite matrix, heterolithic breccia with fine-grained dacite matrix, and heterolithic megabreccia with foliated quartz-biotite dacite matrix.

Diorite porphyry (andesite) observed in the southeast part of the Property corridor formed as sills in the Goyllarisquizga Group sedi ........

Shahuindo consists of an open pit mine and heap leach processing facility that is currently in production and has been operating since 2016. The open pit is being mined in a sequence of phased cutbacks. The mining method utilizes conventional drill and blast, loading of ore and waste is by diesel-powered 90 t excavators into 42 t and 46 t heavy duty highway rigid frame dump trucks. This type of truck is common in this style of operation in Peru. The ore and waste are hauled to the leach pad or waste dumps correspondingly.

Mining is based on an owner operator model, with operations managed and controlled by Pan American utilizing Pan American employees. Mining is carried out on two 12-hour shifts, operating 7 days a week.

The mine design utilizes 8 m benches which are suitable for the size of equipment employed and align with those used since 2016 which have delivered the dilution and ore loss outcomes used for this Mineral Reserve.

Grade control uses a mixture of blast hole drill samples and short RC holes that are drilled on a campaign basis.

Drilling and blasting utilize 156 mm diameter blast holes and powder factors of 0.20–0.25 kg/BCM using a bulk emulsion explosive. Drill penetration rates are consistent between ore and waste, and the deeper benches do not show any changes in the mechanical properties of the rock mass with only the oxide zone being mined (there are some local less oxidized zones that are easily distinguishable ........

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