Lara Project

Copper-Molybdenum

Porphyry

Available for Option Contract

CREATING VALUE THROUGH DISCOVERY IN SOUTH AMERICA

1

General Setting

• Located 35 km to the NE of Palpa and

approximately 350 km SE of Lima

• 1,800 ha in three mining concessions

• Elevations range from 1,500 m to

2,500 m

• Western Peruvian Cretaceous and

Lower Tertiary Cu-Mo porphyry belt

• The belt host world class copper

deposits as Toquepala, Cuajone,

Quellaveco and Cerro Verde

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Major Porphyry Systems in Peru

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Access

• 400 km from Lima to Palpa on

the Panamerican Highway

(5 hours)

• 32 km NE on a reasonably

maintained dirt road to

Hornopampa (1 hour)

• 8 km to the project site on a

tractor trail (requires upgrading)

4

Access trail and drill roads

Historic Exploration Activities

• Mapping and sampling 1995

• IP and magnetic survey 1997 and

2011

• Several drill campaigns between

1997 and 2012 totalling

approximately 9,859 m in 48 holes

• Preliminary metallurgical testwork

on drill core 1998

• Inferred resource estimate 2005

5

Drill core examination

Geology

Lithologies

• Coastal Batholith with

granodiorites and tonalites

is host to mineralization

• Two acid to intermediate

porphyry centers, Lara y

Chocos

• Rhyolite porphyry dykes

• Late andesitic and dacitic

dykes

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Coastal Batholith host rock

Geology

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Lara Socos

Geology

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Lara Socos

Geology

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General view of the Lara target area

Geology

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Alteration

• Potassic, phyllic, argillic

and propylitic alteration

Phyllic alteration in Lara zone

Geology

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Alteration

• Potassic, phyllic, argillic

and propylitic alteration

Leached intrusive with phyllic alteration

and hematite lined quartz stockwork veining

Geology

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Leached feldspar-porphyry with phyllic alteration and

closely spaced hematite lined sheeted quartz veins

Geophysics - Chargeability

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Lara Socos

Mineralization

• Leach cap (30 m to 80 m)

• Oxide blanket with malachite,

crisocolla, azurite and black copper

oxides (tenorite and neotocite)

(5 m to 20 m)

• Supergene enriched blanket with

chalcocite and minor covelite

(10 m to 40 m)

• Primary mineralization with

chalcopyrite, pyrite and minor

bornite

• High pyrite-chalcopyrite ratio

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Diamond drilling

Mineralization - Geological Section North 8411350

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Mineralization - Leach-Oxide-Enrichment Zone

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Mineralization - Oxides, Enrichment and Hypogene

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Drill Core - Leach Zone

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Leached intrusive with

abundant hematite and

quartz veinlets to 10 mm

Drill Core - Oxide Zone

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Malachite and black

copper oxides (tenorite

and neotocite) on

fracture

Drill Core - Enrichment Zone

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Sericite-biotite-K-spar

altered intrusive with

abundant disseminated

chalcocite coated pyrite

and chalcopyrite as well

as black copper oxides

(tenorite and neotocite)

and minor malachite

Drill Core – Primary Mineralization

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Sericite altered intrusive

with quartz-pyrite +/-

chalcopyrite veinlets to 4

mm and 3 % disseminated

pyrite

Resource Estimate

22

ef

Nebocat 2005

• 18.6 Mt @ 0.53 % Cu (0.20 % Cu cut-off)

3-D drillhole modeling

Exploration Results

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ef

Exploration Potential

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ef

• Extending the oxide and enrichment blanket in the area between Lara

and Socos as well as in Socos

• Confirming large volume primary mineralization within the 2,000 m x

800 m target zone including Lara, Socos and the adjacent IP and

geochemical anomalies