Technical Report for the Marimaca Copper Project ... · sold to Michilla, ENAMI and Rayrock. The small open pits had dimensions that do not exceed 20 by 15 m and depths of up to 20

Technical Report for the Marimaca Copper Deposit Page 1 Coro Mining Corp NCL SpA

Technical Report for the Marimaca Copper Project, Antofagasta Province, Region II, Chile

Report Prepared for: Coro Mining Corporation Report Prepared by: NCL Ingenieria y Construcción SpA

February 2017


Technical Report for the Marimaca, Copper Project, Antofagasta Province, Region II, Chile

Coro Mining Corporation Address: Suite 1260, 625 Howe St Vancouver, BC, Canada V6C 2T6 E-mail: [email protected] Website: www.coromining.com Tel: + 1 6 0 4 6 8 2 5 5 4 6 Fax: +1 604 682 5542 NCL Construcción SA Adress: General del Canto 235 Santiago, Region Metropolitana, Chile E-mail: [email protected] Website: www.ncl.cl Tel: +56 2 2651 0800 Fax: NCL Project Number: 1631 Effective date: February 24

th 2017

Signature date: February 24th 2017

Authored by: Luis Oviedo, P. Geo. NCL Ingeniería y Construcción SpA (Geology & Resources) Reviewed by: Ricardo Palma, P. Eng. Consultant NCL

IMPORTANT NOTICE This report was prepared as a National Instrument 43 Technical Report for Coro Mining Corporation (Coro) by NCL Ingenieria y Construccion SpA (NCL). The quality of information, conclusions, and estimates contained herein are consistent with the quality of effort involved in NCL services. The information, conclusions, and estimates contained herein are based on: i) information available at the time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions, and qualifications set forth in this report. This report is intended for use by Coro subject to the terms and conditions of its contract with NCL and relevant securities legislation. The contract permits Coro to file this report as a Technical Report with Canadian securities regulatory authorities pursuant to National Instrument 43-101. Except for the purposes legislated under provincial securities law, any other uses of this report by any third party is at that party’s sole risk. The responsibility for this disclosure remains with Coro. The user of this document should ensure that this is the most recent Technical Report for the property as it is not valid if a new Technical Report has been issued. This document, as a collective work of content and the coordination, arrangement and any enhancement of said content, is protected by copyright vested in NCL. Outside the purposes legislated under provincial securities laws and stipulated in NCL’s client contract, this document shall not be reproduced in full or in any edited, abridged or otherwise amended form unless expressly agreed in writing by NCL.

CERTIFICATE OF QUALIFIED PERSON I, Luis Oviedo, P.Geo, am consultant as QP with NCLand I have an employment address at 235, General del Canto, Providencia, Santiago de Chile. This certificate applies to the technical report titled “Technical Report for the Marimaca, Copper Project, Antofagasta Province, Region II, Chile” that has an effective date of 24

th February 2017 (the “technical report).

I am a registered Professional Geologist (P.Geo.) in Chile. I am registered member of the Comisión Calificadora de Competencias en Recursos y Reservas Mineras (Chilean Mining Conmission: RM, CMC) with the number 013. I graduated with a Geologist degree from the University of Chile in 1977. Postgraduate “Evaluation and Certification of Mining Assets”. Queen’s University Canada and Universidad Católica of Valparaíso, Chile. . I have practiced my profession for 40 years since graduation. I have practiced for more than 40 years. I have been directly involved in resource estimates for all types of mines, audits, half-lives and technical reports of resources for stock exchanges and financial institutions in Canada, Chile, Peru, Ecuador and Colombia. I am a “qualified person” as that term is defined in NI 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”), JORC and other stock exchanges in the world. I visited the Marimaca Project (the “Project”) the second week of December, 2016. I am responsible for the total report.. I am independent of Coro Mining Corp. as independence is described by Section 1.5 of NI 43–101. I have been involved with the Project since November 2016 as part of preparation of the Resources Estimation study. I have read NI 43–101 and the sections of the technical report for which I am responsible have been prepared in compliance with NI 43–101 . As of the effective date of the technical report, to the best of my knowledge, information and belief, the sections of the technical report for which I am responsible contain all scientific and technical information that is required to be disclosed to make those sections of the technical report not misleading. Dated: 24

th February 2017

Signed and sealed Luis Oviedo H. PGeo, QP


0 Executive Summary

The Marimaca Coro Mining Project is an open pit-mineable copper oxide deposit located 45

Km to the north of Antofagasta, Region II of Chile. In anticipation of the report Coro

mandated NCL to visit the properties, estimate the Mineral Resources and compile an

independent technical report pursuant to Canadian Securities Administrators’ National

Instrument 43-101.

In December 2016, a team of independent qualified persons, as the term is defined by

National Instrument 43-101, visited operations at Marimaca. This technical report

summarizes the technical information that is relevant to support the estimation of Mineral

Resources pursuant to Canadian Securities Administrators’ National Instrument 43-101.

0.1 Property Description and Ownership The Marimaca Project and surrounding tenements are located in Chile’s Antofagasta

Province, Region II, approximately 45 kilometres north of the city of Antofagasta, 25 Km

to the east of the port of Mejillones and approximately 1,250 kilometres north of Santiago

(Figure 0-1). The Cerro Moreno International Airport is located about 44 km south of the

Project. Its WGS 85 UTM coordinates (used in the Google EarthTM public base,

www.googleearth.com) correspond to 374,800 E and 7,434,900-N. Also is located 14km

from the Antofagasta to Tocopilla paved highway. The properties are easily accessed

using the public road system. Antofagasta and Mejillones are modern cities with all

regular services and a combined population of approximately 560,000. Personnel

employed by Coro come primarily from the Antofagasta Region.

Figure 0-1 - Marimaca Project Location


Antofagasta has a coastal arid climate with mild temperatures year round. Winters are

mild with warm temperatures. Annual precipitation averages approximately 2-4

millimetres, the majority of which falls in the winter season. The climate allows for year

round mining and exploration activities.

Coro Mining Corp. is an exploration, development & mining company and its 100% owned

Chilean subsidiary Minera Cielo Azul Ltda, has the right to acquire a 75% interest in the

project by completing a resource estimate, engineering studies and arranging financing.

To date, Coro has completed a 54 holes reverse circulation (RC) drilling program for

11.620 m and 6 DDH for 2800.05 m to test outcropping mineralization exposed and in

several artisanal miner’s open cuts.

The Marimaca Project is located in an area of approximately 1,300 m (meters), north-

south; by 700 m, east-west direction. This land comprises one mining concession

containing 23 properties (approximately 115 hectares). The tenements are free of

mortgages, encumbrances, prohibitions, injunctions, and litigation. The tenements

containing the active and future mining activities are not affected by royalties.

0.2 History Project site and district exploration programs have been active since the Marimaca

deposit discovery in 2016. There is no verifiable history of mining prior to Marimaca 1 to

23 properties.

The area was known since the end of the 19th century as “Mineral de Naguayán”.

In 1962, the first report on the project concluded that a granodiorite hosted mineralization

cut by "dark dykes" oriented north-south, and inclined to the east, with copper

mineralization occurring within a system of centimetric parallel fractures. Reportedly, 5

tonnes per week grading between 17% and 50% Cu were being mined. Several of the

deeper underground adits reached sulphides described as chalcopyrite, bornite and

chalcocite.

Between the 70's and 90's there are only reports by geologists of the government

institutions such as the Institute of Geological Investigations and ENAMI (Empresa

Nacional de Minería).The descriptions mention copper oxide mineralization in north-south

oriented fractures and a potential of 200,000 tonnes an average grade of 1.2% of total

cooper was estimated.

In 2003 the owners commissioned a geological study that described and sampled a 10°

striking narrow veined system and estimated a potential resource of 566,000t of average

grade 2.8% Cu. This study recognized an intense fracturing and the key directions for

faults and veins.


At least a couple of companies reviewed the property in the early 2000's, mostly juniors,

but none of them reported the possibility of a substantial mining potential.

In May 2008, geologists from Minera Rayrock described the control of the mineralization

by a "pseudo-stratification" or a "pseudo-stratified intrusive". The potential for copper oxide

mineralization was estimated at 21 Mt of average grade 0.8% Cu. After this, there are no

other reports regarding mining activities in the area.

Meanwhile, artisanal miners exploited the properties by developing small open pits and

underground workings often with some degree of mechanization. Most of these ores were

sold to Michilla, ENAMI and Rayrock.

The small open pits had dimensions that do not exceed 20 by 15 m and depths of up to 20

m. Underground workings reached extensions of no more than 100 m. Minera Cielo Azul

(MCAL), a 100% Coro owned subsidiary was the first company to access the property with

the idea of exploring for an open pit, leachable, deposit in the Naguayán area.

0.3 Geology, Mineralization and Deposit Types The Marimaca deposit is located in the Coastal Cordillera in the Antofagasta Region,

within a belt of Mesozoic age copper deposits, known as the Coastal Copper Belt, which

range in (pre-mining) size from Mantos Blancos, ~500 million tonnes to Ivan with ~50

million tonnes. These types of deposits occur in a variety of host rocks and have different

morphologies. However, they have a common Cu-Ag primary mineralogy zoned from

bornite outwards to chalcopyrite and pyrite, deep oxidation and frequently, secondary

enrichment.

The deposits in the district are located NW of the main branches of the Antofagasta Fault

Zone, a subduction-related strike-slip fault system stretching over 1,000 kilometres along

the Chilean coast and active at least since the Jurassic.

The copper mineralization at Marimaca is generally referred to as Coastal Copper Belt

type of mineralization. The mineralization occurs in intensely parallel fractured

monzodiorite, and in detail mineralization occurs in breccias, stockworks, veinlets and

disseminations along a “shear zone” (parallel centimeter spaced faulting). Marimaca has

become a new exploration model for Coastal Copper Belt deposits displaying close

relationships to the plutonic complexes and broadly coeval fault systems.

The Marimaca deposit is a 150-250m thick; gently ESE dipping, portion of strongly

fractured Jurassic monzodiorite, formed at the intersection of major N striking Marimaca

structure and NE striking feeder zones. The intersection of these structures has produced

wide NW-SE oriented zones of eastward dipping mineralization, that have been exploited

from a series of open cuts and small underground workings by artisanal miners. Surface


mapping and drilling has shown that the mineralization is comprised of multiple, thick,

higher grade structures bordered by lower grade halos.

The better grades represent the oxidation of a former sulphide enrichment blanket

consisting mostly of brochantite and chrysocolla. A large pyrite halo developed in the

hanging wall, now oxidised to form limonitic leached cap, containing some low grade

copper wad rich irregular zones. Mineralization and concentration of copper are controlled

by fracture density. The deposit is cross cut by late, post mineral dykes and sills.

0.4 Exploration Status

Before the drilling that led to the discovery of Marimaca in the first half of 2016, the work

carried out was only a few indicative samples of rock and geological reconnaissance.

These works were performed as part of the due diligence prior to the option agreement, in

late 2014 and part of 2015. In the last year geochemical sampling of rocks on a regular

grid of 100 x 100 m, covering the surface of the property and the topographic survey and

aerial images taken with UAV / Drone were added.

The exploration was conducted by Coro with the primary purpose of exploring for mineral

resources. Work will now be focused on the known mineralization, by improving the quality

of the resources and expanding them.

From the first semester of 2016, Coro invested more than US$ 1.5 million in exploration to

delineate Mineral Resources, primarily surrounding the Marimaca small open pit, then to

the north and south. The information from that program was used to define the current

base of measured, indicated and inferred copper oxide resources.

Building on this exploration success, an exploration program is planned for the 2017

period, targeting an infill and the lateral extensions of the investigated areas. The planned

exploration program includes around 15,000 metres of core and RC drilling at an

estimated total cost of US$ 2 million. The mineral potential targeted by the proposed

exploration program is estimated to improve 50% of Indicated resources to Measured

resources and 70 % tonnes of Inferred to Indicated resources. The range of tonnage and

grades expected from the results of the proposed exploration program are estimated from

the recent exploration results. The reader is cautioned that the potential quantity and grade

estimates expected from the proposed exploration program are conceptual in nature.

The exploration potential of the Coro properties is good. NCL is of the opinion that

aggressive exploration programs must continue to expand and improve the resources.

0.5 Drilling, Sample Preparation, Analyses, and Security Mineral Resources are derived from the 2016 drill program where Coro drilled 6 core and

54 RC holes in and around the Marimaca old workings. The drilling and sampling


procedures are consistent with generally recognized industry best practices. NCL

concludes that the samples are representative of the source materials and there is no

evidence that the sampling process introduced a bias.

Analytical samples for the Marimaca Mineral Resources were prepared and assayed in

Geolaquim Laboratory in Copiapo, certified for copper analyses. Conventional preparation

and assaying procedures are used. Copper is analyzed by multi acid digestion and atomic

absorption spectroscopy (AAS). Specific gravity was systematically measured on 184 core

samples of the DDH campaign.

Coro implemented analytical quality control measures, consistent with generally accepted

industry best practices. The analytical quality control program includes the use of control

samples inserted with all samples submitted. The analytical quality control data was

routinely monitored. In the opinion of NCL, the analytical results are free of apparent bias. The sampling

preparation, security, and analytical procedures used are consistent with generally

accepted industry best practices and are therefore adequate to support Mineral Resource

estimation.

0.6 Mineral Processing and Metallurgical Testing

Coro is carrying out preliminary metallurgical analysis testing to predict its processing

performance in terms of metal recovery to SXEW. Four types of leachable copper oxide

mineralization were identified in logging and were modelled separately in the resource

estimation:

Brochantite/Atacamite

Chrysocolla

Copper wad and black oxides

Mixed oxides and Enriched

At the time of preparing this report, the column tests are in progress. Nevertheless, prior

column tests, from open pit samples, returned 75-85% Cu recovery and 20-40 kg/t net acid

consumption.

0.7 Mineral Resource Estimates The Mineral Resources discussed herein are based on information from 60 core and RC

drill holes, stored in a secured central database, and were evaluated using a geostatistical

block modelling approach. Separate models were prepared for the Marimaca geological

estimation units. Only leachable oxides and mixed material are included in the estimation.


NCL reviewed and audited the different sets of sections and produced 3D solids of each

estimation geological unit and in the opinion of NCL the resource evaluation reported

herein is a reasonable representation of the Mineral Resources found at Marimaca at the

current level of sampling. The Mineral Resources have been estimated in conformity with

generally accepted CIM Estimation of Mineral Resource and Mineral Reserves Best

Practices Guidelines and are reported in accordance with Canadian Securities

Administrators’ National Instrument 43-101. The consolidated Mineral Resource Statement

for the Marimaca deposit is presented in Table 0-1.

Table 0-1: Consolidated Mineral Resource Statement, Marimaca, NCL Consulting (January 2017). Metal contained within the boundaries of the Marimaca properties. All figures are rounded to reflect the

relative accuracy of the estimates.

0.8 Pit Constrained Resource Estimate This work is a resource estimate only. According to the standard of the 43-101

instruments, in the case of open pit projects it is necessary to consider an optimized open

pit with actual and local parameters. The estimate is included in a Whittle optimized pit,

whose technical and economic parameters are shown in Table 0-2:

Table 0-2 - Whittle Input Data and Results


0.9 Project Infrastructure

At the moment of preparing this report, there is no specific infrastructure developed for

Marimaca. The project has a good location and vicinity, and initially is expected to be

developed within constraints of existing infrastructure in the surroundings, in particular

power and water.

0.10 Conclusion and Recommendations

A team of independent consultants, under the leadership of NCL, was retained by Coro to

visit Marimaca the second week of December 2016, inspect the project, review and audit

the data and estimate the Mineral Resource. NCL examined the different sources of input

information: raw data (QA/QC), exploration, geology and mineral modelling estimation

units. The purpose of the investigation was to estimate the Mineral Resource, in

compliance with generally recognized industry best practices and report them according to

Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral

Resources and Mineral Reserves (May 2014).

NCL carried out a Resource Estimation of the Marimaca Project, resulting in the estimation

of Measured, Indicated and Inferred Resources, plus some potential mineralized rock. For

a Cutoff grade of 0.2% CuT, the Resources inside an optimized pit envelope are 21.5 Mt

@ 0.68 CuT of Measured + Indicated and 18.8 Mt @ 0.53% CuT Inferred resources.

Based on the 2016 Mineral Resources estimation, the project is expected to continue

under exploration during 2017.

Since 2016, aggressive exploration in Marimaca has defined oxides mineralization zones

amenable to open pit mining and presents very good opportunities to expand the Mineral

Resources and extend the life of the project. In this context, NCL recommends to continue

the implementation of the exploration program proposed for 2017 (US$2 million). The

regional exploration potential of the exploration properties remains good. Regional

exploration targeting should be reviewed, including the use of high resolution geophysical

data to enhance exploration targeting.

The technical information on Marimaca attests the high overall quality of the exploration

and design work completed by site personnel. NCL examined the data, the exploration,

and the geology modelling and produced the Mineral Resource estimates of Marimaca. On

the basis of this work, NCL concluded that the models, Mineral Resources and Statements

for Marimaca January 2017 are appropriately categorized and free of material errors.

Other than disclosed in this technical report, NCL is not aware of any other significant risks

and uncertainties that could reasonably be expected to affect the reliability or confidence in

the Marimaca Project.


Contents 0 Executive Summary ..................................................................................................................... 4

0.1 Property Description and Ownership................................................................................... 4

0.2 History ................................................................................................................................. 5

0.3 Geology, Mineralization and Deposit Types ........................................................................ 6

0.4 Exploration Status ............................................................................................................... 7

0.5 Drilling, Sample Preparation, Analyses, and Security ......................................................... 7

0.6 Mineral Processing and Metallurgical Testing ..................................................................... 8

0.7 Mineral Resource Estimates ............................................................................................... 8

0.8 Pit Constrained Resource Estimate .................................................................................... 9

0.9 Project Infrastructure ......................................................................................................... 10

0.10 Conclusion and Recommendations ................................................................................... 10

1 Introduction and Terms of Reference ........................................................................................ 16

1.1 Terms of Reference ........................................................................................................... 16

1.2 Qualification of NCL........................................................................................................... 17

1.3 Basis of Technical Report ................................................................................................. 18

1.4 Declaration ........................................................................................................................ 18

1.5 Units and Currency Definitions .......................................................................................... 19

2 Reliance on Other Experts ......................................................................................................... 19

3 Property Description and Location ............................................................................................. 19

3.1 Mineral Tenure and Earn In Agreement ............................................................................ 20

3.2 Mineral Rights in Chile ...................................................................................................... 22

3.3 Surface Rights ................................................................................................................... 22

3.4 Water Rights ...................................................................................................................... 23

3.5 Environmental Liabilities and Permits ............................................................................... 23

4 Accessibility, Climate, Infrastructure and Physiography ............................................................ 23

4.1 Accessibility ....................................................................................................................... 24

4.2 Local Resources and Infrastructure .................................................................................. 24

4.3 Climate .............................................................................................................................. 25

4.4 Physiography ..................................................................................................................... 26

5 History ........................................................................................................................................ 27

6 Geological Setting and Mineralization ........................................................................................ 28

6.1 Regional Geology .............................................................................................................. 28

6.2 Metallogenic Setting .......................................................................................................... 31

6.3 Local Geology .................................................................................................................... 32

6.4 Property Geology............................................................................................................... 33

6.4.1 Lithology ........................................................................................................................ 33

6.4.2 Structure ........................................................................................................................ 35

6.4.3 Alteration ....................................................................................................................... 36

6.4.4 Mineralization ................................................................................................................ 38

7 Deposit Types ............................................................................................................................ 42


8 Exploration ................................................................................................................................. 44

8.1 Surveying, Image and Topographic Base ......................................................................... 44

8.2 Surface Sampling .............................................................................................................. 45

8.3 Surface Geologic Mapping ................................................................................................ 46

8.4 Geochemistry .................................................................................................................... 46

8.5 Geophysics ........................................................................................................................ 47

8.6 NCL Comments ................................................................................................................. 48

9 Drilling ........................................................................................................................................ 48

10 Sample Preparation, Analyses and Security ......................................................................... 52

10.1 Drillhole Sampling.............................................................................................................. 52

10.2 Sample Rejects and Pulps Storage................................................................................... 52

10.3 Specific Gravity Data Sampling ......................................................................................... 53

10.4 Quality Assurance and Quality Control Programs ............................................................. 53

10.4.1 Standard Sample Analysis ........................................................................................ 53

10.4.2 Duplicate & Check Sample Analysis ......................................................................... 55

10.4.3 Blank Sample Analysis .............................................................................................. 56

10.5 Sample Security ................................................................................................................ 57

10.6 NCL Comments ................................................................................................................. 57

11 Data Verification .................................................................................................................... 57

11.1 Verifications by Coro ......................................................................................................... 57

11.2 Verifications by NCL .......................................................................................................... 58

12 Mineral Processing and Metallurgical Testing ....................................................................... 58

13 Mineral Resource Estimates ................................................................................................. 59

13.1 Introduction ........................................................................................................................ 59

13.2 Resource Estimation Procedures ...................................................................................... 59

13.3 Database ........................................................................................................................... 60

13.3.1 Drilling Database ....................................................................................................... 60

13.3.2 Geological Interpretation ........................................................................................... 61

13.4 Sample Statistics ............................................................................................................... 63

13.5 Composite Statistics .......................................................................................................... 64

13.6 Contact Analyses............................................................................................................... 65

13.7 Variography – Calculation and Adjustment of Variograms................................................ 66

13.8 Definition and Generation of the Block Model ................................................................... 69

13.8.1 Geological Model ....................................................................................................... 69

13.8.2 Specific Gravity Model ............................................................................................... 70

13.9 Kriging Plans and Resource Classification Criteria ........................................................... 70

13.10 Grades Estimation Results ............................................................................................ 72

13.11 Classification of Resources ........................................................................................... 74

13.12 Resource Model Validation ........................................................................................... 74

13.12.1 Visual Validation ........................................................................................................ 75

13.12.2 Statistic Validation ..................................................................................................... 76

13.12.3 Trend Analyses .......................................................................................................... 77

13.13 Reasonable Prospects for Eventual Economic Extraction ............................................ 79


13.14 Other considerations and criteria used for the optimization process ............................ 79

13.15 Mineral Resource Estimate ........................................................................................... 80

13.16 Reporting Sensitivity ...................................................................................................... 81

13.17 General Considerations and Other Factors................................................................... 83

14 Mining Method ....................................................................................................................... 83

15 Recovery Methods................................................................................................................. 83

16 Project Infrastructure ............................................................................................................. 83

17 Adjacent Properties ............................................................................................................... 83

18 Other Relevant Data and Information.................................................................................... 84

19 Conclusions and Recommendations ..................................................................................... 84

20 References ............................................................................................................................ 85


List of Figures

Figure 0-1 - Marimaca Project Location .............................................................................................. 4 Figure 3-1: - Marimaca Project Location .......................................................................................... 19 Figure 3-2: - Marimaca Project Mining Property .............................................................................. 20 Figure 4-1 - Accessibility ................................................................................................................... 24 Figure 4-2- Key Infrastructure ........................................................................................................... 25 Figure 4-3 - Project location showing relevant physiographic elements. View toward NE. .............. 27 Figure 6-1- Regional Coastal Cordillera Geology (taken from Ramirez, 2007) ................................ 30 Figure 6-2: Coastal Cordillera main Copper Deposits Location (taken from Ramirez, 2007) ........... 31 Figure 6-3- Marimaca Project Geology Summary ............................................................................. 33 Figure 6-4 - Feeders, showing hydrothermal alteration and halos of phyllic alteration ..................... 36 Figure 6-5 - View of the extent of surface mineralization according to geochemistry and mineral

subzones ........................................................................................................................................... 39 Figure 7-1 - Schematic Section through Marimaca Type Systems .................................................. 43 Figure 8-1 - Topographic Base and Orthorectification ..................................................................... 45 Figure 8-2 - Sampling of road cuts, basic elements of the structure and mineralization from FW to

HW ..................................................................................................................................................... 46 Figure 8-3: RPT-processed magnetometry. GeoMagDrone™ flight data ......................................... 47 Figure 9-1 – Collar locations on the Marimaca Properties ................................................................ 50 Figure 9-2 - Examples of results of orientation measurements of structures by means of BHTV: (a)

record of measurements with hole image; (b) stereograms and diagrams of roses ......................... 51 Figure 10-1 - SRM Analysis (RC) ...................................................................................................... 54 Figure 10-2 - SRM Analysis (Core) ................................................................................................... 54 Figure 10-3 - Original vs Check Samples (RC) ................................................................................. 55 Figure 10-4 - Original vs Check Samples (RC) ................................................................................. 55 Figure 10-5: Original vs PUD Samples (RC) ..................................................................................... 56 Figure 10-6: - Original vs PUD Samples (Core) ................................................................................ 56 Figure 13-1: Geological Interpretation, Section NW 300 viewed to SW) .......................................... 61 Figure 13-2- Key estimation domains of Marimaca ........................................................................... 62 Figure 13-3: Brochantite - Chrysocolla Contact, CuT ....................................................................... 65 Figure 13-4: Brochantite - Wad Contact, CuT ................................................................................... 65 Figure 13-5: Chrysocolla - Wad Contact, CuT .................................................................................. 66 Figure 13-6: Correlogram CuT - Brochantite & Chrysocolla - Hz ...................................................... 68 Figure 13-7: Correlogram CuT - Brochantite & Chrysocolla – Hz – Az=90º - VT 40º ....................... 68 Figure 13-8: Correlogram CuT - Brochantite & Chrysocolla – Az = 90º - VT -50º ............................ 68 Figure 13-9: Solids - Blocks and Samples - Section NW 300 view to SW ........................................ 70 Figure 13-10: Log-Probability Plot CuT – Brochantite....................................................................... 72 Figure 13-11: Visual Revision of the Model of CuT – Section NE 300 ............................................. 75 Figure 13-12: Visual Revision of the Model of CuT – Section NE 500 ............................................. 75 Figure 13-13: Visual Revision of the Model of CuT – Plan view 950 ................................................ 76 Figure 13-14: Trend Analysis – Brochantite – EW Direction ............................................................. 77 Figure 13-15: Trend Analysis – Brochantite – NS Direction ............................................................. 78 Figure 13-16: Trend Analysis – Brochantite – Elevation ................................................................... 78 Figure 13-17 - Isometric view of the generated Whittle pit and the block model .............................. 81


List of Tables Table 0-1: Consolidated Mineral Resource Statement, Marimaca, NCL Consulting (January 2017). 9 Table 0-2 - Whittle Input Data and Results ......................................................................................... 9 Table 1-1 - Responsibility of Report Section ..................................................................................... 17 Table 1-2: Qualified Person and professionals’ involvement ............................................................ 18 Table 3-1: - List of Concessions in the Surroundings of the Marimaca Project Area ...................... 21 Table 9-1: - Summary of Drilling Activities at Marimaca .................................................................. 49 Table 13-1: Database General Information. ...................................................................................... 60 Table 13-2: Mineral Zone Codes ....................................................................................................... 61 Table 13-3: Sample Statistic for CuT. ............................................................................................... 63 Table 13-4: Sample Statistic, CuS .................................................................................................... 63 Table 13-5: Sample Statistic for CuT, per Rock Type. ...................................................................... 64 Table 13-6: Sample Statistic for CuS, per Rock Type. ..................................................................... 64 Table 13-7: Types of Contact ............................................................................................................ 66 Table 13-8: Correlograms Preferential Directions ............................................................................. 67 Table 13-9: Correlograms, Adjusted Models CuT ............................................................................. 67 Table 13-10: Correlograms Adjusted Models CuS ............................................................................ 67 Table 13-11: Definition of the Block Model. ...................................................................................... 69 Table 13-12: Total Coded Blocks ...................................................................................................... 69 Table 13-13: Specific Gravity per Unit .............................................................................................. 70 Table 13-14: Kriging Plan Parameters .............................................................................................. 71 Table 13-15: D85 per Direction and Population (m) .......................................................................... 71 Table 13-16: Outliers Limits. ............................................................................................................. 72 Table 13-17: Estimation Results; Cut and CuS ................................................................................. 73 Table 13-18: Kriging Passes and Resource Classification ............................................................... 74 Table 13-19: Statistic Comparison, Blocks vs Composites – CuT .................................................... 76 Table 13-20: Statistic Comparison, Blocks vs Composites – CuS .................................................... 77 Table 13-21: Technical – Economical Parameters for Pit Optimization ............................................ 79 Table 13-22: Consolidated Mineral Resource Statement, Marimaca, NCL Consulting (January

2017). ................................................................................................................................................ 80 Table 13-23: Mineral Resource Estimate for the Marimaca Deposit based on a cutoff grade of

0.20% CuT. January 2017, Luis Oviedo, P. Geo. ............................................................................. 80 Table 13-24: Sensitivity of the mineral resource to changes in CuT cut-off grade (base case cutoff)

........................................................................................................................................................... 82 Table 13-25: Sensitivity of the mineral resource to changes in metal price assumption (US$2.70/lb

Cu) ..................................................................................................................................................... 82

ANNEX 1 Lawyers Land Tenure Letter………………………………………………….………………...86 List of Mining and Exploration Concessions .....................................................................90 Mining and Surface Rights Maps…………………………………………………………...….91 ANNEX 2 MCAL splitting protocols, recovery and sample collection protocols ………………………93


1 Introduction and Terms of Reference

The Marimaca Project is located near Antofagasta in the Antofagasta Province, Region II

of Chile. Coro Mining Corp. (Coro) is a British Columbia company incorporated under

the Business Corporations Act of B.C., on September 22, 2004, with a registered office

at Suite 1280, 625 Howe Street, Vancouver, British Columbia, Canada, V6C 2T6.

Marimaca is a copper oxide open pit project. Coro’s major shareholder is Greenstone

Resources (55.9% of Coro), a private equity group investing in companies with small to

medium size projects. Coro is a Canadian public company listed on the Toronto Stock

Exchange (symbol COP) which as a result, generates the requirement for Coro to file a

technical report to support the disclosure of Mineral Resource memorandum to raise

capital to fund the Project.

The Marimaca 1-23 exploitation concessions are owned 100% by Sociedad Contractual

Minera Newco Marimaca (SCMNM), whose shareholders are various members of the

Carrizo Echanes family of Antofagasta. On November 16th, 2015, all the shareholders

signed an Option Agreement with Minera Cielo Azul Limitada (MCAL), a 100% owned

subsidiary of Coro, whereby MCAL has the option to acquire up to 75% of the shares of

SCMNM and thereby, up to 75% of the Marimaca 1-23 concessions, via a combination of

cash payments and earn in.

In 2016, Coro retained the services of NCL Ingenieria y Construccion SpA (NCL) to visit

the Coro project and compile a technical report pursuant to National Instrument 43-101

Standards of Disclosure for Mineral Projects and Form 43-101.

This technical report summarizes the technical information that is relevant to support the

estimation of Mineral Resources for Marimaca. This technical report is based on an

inspection of the property by a team of qualified persons, as this term is defined in National

Instrument 43-101, conducted on December 6 and 7, 2016, a review of technical

information made available by Coro in electronic format, and discussions with technical

personnel. The qualified persons have reviewed such technical information and determined

it to be adequate for the purposes of this report. The authors do not disclaim any

responsibility for this information.

1.1 Terms of Reference

The scope of work is defined in an engagement letter executed between Coro and NCL.

The scope involves mobilizing a team of qualified persons to visit the subject mineral

assets to review the technical information relevant to support Mineral Resources estimate.

The objective is to provide estimation about the Mineral Resource for Marimaca as of

January, 2017, and to compile a technical report pursuant to National Instrument 43-101 to

support the disclosure of Mineral Resource by NCL. Responsibilities for each report

section are listed in Table 1-1.


Table 1-1 - Responsibility of Report Section

1.2 Qualification of NCL NCL includes more than 40 professionals, offering expertise in a wide range of resource

estimation and engineering disciplines. The independence of the NCL is ensured by the

fact that it holds no equity in any project it investigates and that its ownership rests solely

with its staff. These facts allow NCL to provide its clients with conflict-free and objective

recommendations. NCL has proven assessments of Mineral Resources, project

evaluations and audits, technical reports and autonomous feasibility evaluations to

bankable standards on behalf of exploration and mining companies, and financial

institutions worldwide. Through its work with a large number of major international mining

companies, NCL has established a reputation for providing valuable consultancy services

to the global mining industry.

The technical report was compiled by a group of professionals from the NCL Santiago

offices. In accordance with National Instrument 43-101 guidelines, qualified persons visited

the Marimaca project during December 2016 as shown in Table 1-2.


Table 1-2: Qualified Person and professionals’ involvement

Company Qualified Person P. Engineer Site Visit Responsibility

NCL Luis Oviedo

December 2016 Overall

responsibility on behalf of NCL

NCL

Ricardo Palma December 2016 NCL

Cristina Gomez

NCL

Miguel Vera

1.3 Basis of Technical Report This technical report is based on information made available to NCL by Coro in

electronic files and information collected during the site and office visits. The authors

have no reason to doubt the reliability of the information provided by Coro. Other

information was obtained from the public domain. This report is based on the following

sources of information:

Discussions with Coro, Marimaca, personnel;

Site visit to Marimaca conducted in December 2016;

Information posted by Coro in an Intralinks; and

Additional information from public domain sources.

The qualified persons have reviewed such technical information and do not disclaim any

responsibility for the information provided and reviewed.

1.4 Declaration NCL’s opinion contained herein and effective February 2017 is based on information

collected by NCL throughout the course of NCL’s investigation. The information in turn

reflects various technical and economic conditions at the time of writing the report. Given

the nature of the mining business, these conditions can change significantly over relatively

short periods of time. Consequently, actual results may be significantly more or less

favourable.

This report may include technical information that requires subsequent calculations to

derive subtotals, totals, and weighted averages. Such calculations inherently involve a

degree of rounding and consequently introduce a margin of error. Where these occur, NCL

does not consider them to be material.

NCL is not an insider, associate or an affiliate of Coro. The results of the report by NCL are

not dependent on any prior agreements concerning the conclusions to be reached, nor are

there any undisclosed understandings concerning any future business dealings.


1.5 Units and Currency Definitions

All units in this report are metric, unless specified explicitly in the text. Currency used is

dollars of the United States of America.

2 Reliance on Other Experts NCL has not performed an independent verification of the land titles and tenures of this

report. NCL did not verify the legality of any underlying agreements that may exist

concerning the permits or other agreements between third parties, but has relied on the

information provided by the legal advisors of Coro, Bofill Mir and Alvarez Jana Abogados,

(Av. Andrés Bello 2711, piso 8, Las Condes, Santiago, Chile), in an opinion letter sent to

Coro on January 2017. This letter is attached as Appendix 1, regarding the ownership

status of the Marimaca properties.

Sergio Rivera, Vice President of Exploration, Coro Mining Corp, a geologist with more than

36 years of experience and a member of the Colegio de Geologos de Chile, Society of

Economic Geologist and of the Instituto de Ingenieros de Minas de Chile, was responsible

for the site visit, the design and execution of the exploration program and some chapters

of this report. He is a Qualified Person for the purposes of NI 43-101 instrument.

3 Property Description and Location The Marimaca Project and surrounding tenements are located in Chile’s Antofagasta

Province, Region II, approximately 45 kilometres north of the city of Antofagasta and

approximately 1,250 kilometres north of Santiago. The properties are connected to the

well-maintained Chilean road system (Figure 3-1). The assets are located at approximately

UTM 374820.00 m E and 7435132.00 m S.

Figure 3-1: - Marimaca Project Location


3.1 Mineral Tenure and Earn In Agreement

The Marimaca 1-23 concession (Figure 3-2) comprised 23 claims of 5 hectares each, for a

total of 115 hectares. It is listed in the national mining claims register with the number

02203-0273-3 and is located in the Region and Province of Antofagasta, in the Sierra

Naguayán, Commune of Mejillones.

According to its file, it was surveyed in 1981 and registered under the file F 0234, Number

0073 of 1981. According to the Chilean mining legislation, the rights granted to the

concession holder do not lapse or expire, provided that the annual claim fees are paid

annually.

The concession is in good standing, with the payment of its annual claim fees made up to

and including 2016, without interruption. During the term of the Agreement MCAL is

obligated to maintain the property in good standing and to pay the annual claim fees, the

next of which is due in March 2017. Inspection of the online government mining claims

map (http: / / /catastro.sernageomin.cl/) confirms that the Marimaca concession is in good

standing, with no third superposition’s of claims, except those placed by MCAL to protect

the wider Marimaca area. See Figure 3-2 and Table 3-1.

Figure 3-2: - Marimaca Project Mining Property


PROYECTO MARIMACAMINING CONCESSIONS MINERA CIELO AZUL LTDA

Exploitation concesions Concesión Presentación Juzgado Rol Nº Inscripción Fjs Nº Conservador Situación

Miranda II 1/225 08-ago-16 1º Antofagasta V-526 22-ago-16 4712 2840 Antofagasta En trámite

Miranda IV 1/150 08-ago-16 2º Antofagasta V-580 22-ago-16 4714 2842 Antofagasta En trámite

Miranda III 1/150 08-ago-16 3º Antofagasta V-544 22-ago-16 4713 2841 Antofagasta En trámite

Miranda I 1/210 08-ago-16 4º Antofagasta V-567 22-ago-16 4711 2839 Antofagasta En trámite

Exploration ConcessionsConcesión Presentación Juzgado Rol Nº Inscripción Fjs Nº Conservador Situación

Miranda 19 08-ago-16 1º Antofagasta V-524 22-ago-16 4716 2844 Antofagasta En trámite


Chacaya 16 08-ago-16 2º Antofagasta V-578 22-ago-16 4722 2850 Antofagasta En trámite






Miranda 2 15-jun-16 1º Antofagasta V-407-2016 01-jul-16 3756 2226 Antofagasta En trámite

















Naguayan 1 24-nov-14 2º Antofagasta V-1388 06-ago-15 4374 2514 Antofagasta Constituída











Chacaya 1 24-nov-14 2º Antofagasta V-1402 06-ago-15 4346 2500 Antofagasta Constituída

















Table 3-1: - List of Concessions in the Surroundings of the Marimaca Project Area

Agreement Terms

The Marimaca 1-23 exploitation concessions are owned 100% by Sociedad Contractual

Minera Newco Marimaca (SCMNM), whose shareholders are various members of the

Carrizo Echanes family of Antofagasta (Carrizos).


MCAL can earn a 51% interest in SCMNM on payment of $125,000 together with completion

of an NI 43-101 compliant resource estimate and an engineering study that demonstrates

the technical and economic feasibility of producing a minimum of 1,500tpy Cu as cathode by

August 6th 2018 at MCAL's cost.

An additional 24% interest in SCMNM can be earned by MCAL on obtaining financing for the

project construction.

The Carrizos interest will comprise a 15% interest free carried to commencement of

commercial production and a 10% participating interest subject to dilution. The owners at

their election may request MCAL to loan them the equity portion corresponding to their 10%

interest, if any. This loan plus applicable interest would be recoverable by MCAL from 100%

of the project's free cash flow after debt repayments.

Coro has a first right of refusal over Carrizos interest.

The Agreement establishes an area of influence within which the Carrizo family, but not

MCAL, is required to deliver to SCMNM any new concessions acquired or staked by them

for the benefit of SCMNM. MCAL has staked, and is achieving, exploration and exploitation

claims in its own right to cover prospective ground, and areas for dumps, pads and mining

installations.

Based on the current information, the mineralization is largely contained within the confines

of the Marimaca 1-23 concession, but may extend to adjacent ground held by third parties.

The Chilean mining regulations provide for the extraction of a concession holder, with the

granting of a access through any possible adjoining property.

The Marimaca 1-23 concession is not subject to any royalties, contracts or liens of any kind.

3.2 Mineral Rights in Chile Excluding liquid or gaseous hydrocarbons and lithium, the mining concessioner can exploit

and benefit from all other minerals within the boundaries of the relevant concessions, without

additional administrative concessions or operation agreements.

In the event that the surface property owner does not voluntarily agree to the granting of the

easement, the titleholder of the mining concession may request such easement before the

Courts of Justice, which shall grant the same upon determination of due compensation for

losses.

3.3 Surface Rights

SCMNM has no existing surface rights over the area covered by the concession Marimaca 1

to 23. It has no access prohibitions. The mere fact of being a mining concessionaire gives


the right to dispose of the surface for the mining works. MCAL has not applied for surface

rights in the area, with SCMNM being the preferential right.

3.4 Water Rights The area lacks of water resources in the form of surface flows and no exploration for

underground resources has been carried out on or near the property. The deeper mining

workings, of about 100 m and the drill holes of MCAL that reached up to 350 m of depth did

not encounter water. Consequently there are no water rights that could affect mining

development in the area.

3.5 Environmental Liabilities and Permits The magnitude or intervention of the mining works executed in the property Marimaca 1 to

23 does not qualify to be submitted to the environmental norm. There are no permits or

commitments in force resulting from the application of Chilean environmental regulations.

The work of small miners is regulated by the mining safety regulations, whose

implementation is monitored by the National Service of Geology and Mining

(SERNAGEOMIN).

For purposes of future work carried out on the property, it will be the responsibility of the

owner to evaluate the respective pertinence and to apply for any permissions from the

authorities. In the immediate future, exploration work and drilling projects, do not require

environmental permits due to the low impact that they have on the environmental conditions

of the area.

The location of Marimaca property 1 to 23 does not indicate conditions of risk that have

affected or may affect future exploration and mining developments. There are no climatic or

other hazards that need to be specially considered.

An environmental baseline study has been completed for the Marimaca copper leach

development-stage project. The work was carried out by an independent consultant,

BORDOLI & Consultores Asociados EIRL of Antofagasta, Chile between November 2016

and January 2017. The consultant concluded that there were no material environmental

issues that would impede the development of the Marimaca project, and the information

gathered will form part of the feasibility study for the project that is in progress.

4 Accessibility, Climate, Infrastructure and Physiography The project is located in the Antofagasta Province, Region II of northern Chile at an elevation

of 800 to 1.100 metres above sea level and approximately 45 kilometres north of the City of

Antofagasta and 25 kilometres east of the port of Mejillones, see Figure 4-1.


4.1 Accessibility Marimaca is accessible by maintained dirt roads, one coming from the Cerro Moreno Airport

and the other branching off of Route Antofagasta -Tocopilla. Antofagasta regional airport is

serviced by regional and international flights from Santiago and other destinations on a daily

basis. The regional Cerro Moreno airport is located 44 Km to the Project. Antofagasta and

Mejillones are strategically located on the coast through a well-maintained multi- lane

highway. High voltage lines that transport energy from the power stations located in

Mejillones to the interconnected system of the north are also close to the road.

Figure 4-1 - Accessibility

4.2 Local Resources and Infrastructure Antofagasta and Mejillones are modern cities with all regular services, serving a combined

population of approximately 570,000. Numerous mining-related businesses are located in

the cities. Personnel employed by Coro mainly come from the Antofagasta region. Power

lines and water desalination plants are at near distance of the property. See Figure 4-2 with

the image of resources and infrastructure around the project.

There are 3 thermoelectric plants installed in Mejillones and power lines are located within

12km of the project.


While Mejillones is an industrial port and most of the labour force is specialized in this type of

jobs, Antofagasta has the largest labour force dedicated to mining in northern Chile. Their

level of knowledge in the matter is high and participate both in the work of large and medium

mining. The city is a “mining cluster", where research, education, technical training centers

and the largest suppliers of equipment and services for mining in the country operate.

Figure 4-2- Key Infrastructure

4.3 Climate The Project is located about 39 km north of the Tropic of Capricorn. The minimum

temperatures vary between 10 to 15 ° C and the maximum temperatures between 20 to 29 °

C, while the average relative humidity oscillates between 67 to 70%. The climate is dry and

the average annual rainfall is 2-3 mm as an annual average of 24 hours.

In the region, rainfall is very rare and decade’s events of rains, which can reach up to 12 to

30 mm in a few hours, can occur. In the Resource area, however, they have no major impact


because they do not have high slope drainage from the coastal cliff, a feature that develops

both to the south and north of the Mejillones Peninsula.

To the east extends the central depression zone, characterized by vast areas of low slope,

the "pampas", where the weather conditions are extremely arid and with notable variations in

temperature between day and night. These, in general, vary between 28º C (day) and 2 ° C

(night).

4.4 Physiography The Marimaca Project is located in the Cordillera de la Costa, a relevant physiographic unit

in the northern territory of Chile. The project area is mountainous with a relief varying

between 0 and 1,000 metres. Vegetation is minimal outside of inhabited valleys where

irrigation and the “Camanchaca” sea mist that comes from the nearby ocean, support

vegetation that is capable of withstanding the desert environment.

The Project is located in an active seismic zone. The sector is not limited to the west by the

characteristic steep coastal cliff that can reach differences of average height of 700 m;

whereas the Mejillones Peninsula, the cliff is moved about 37 km to the west, permitting the

intermediate space to be occupied by a vast "pampa" (flat land) about 20 km wide (Figure 4-

2).

Controlled by faults of north-south to north-northeast orientation the relief of the area

consists of mountain ranges that reach up to 1,500 meters above sea level (Cerro

Naguayán) rising to the E on pampas of an average altitude of 700 m.o.s.l. The main one is

the pampa that is aligned in the northeast direction bordering the Mititus Fault. It extends for

more than 30 km and its width varies from 1 to 2 km along the course of the Quebrada

Naguayán..

The drainage system of the Mejillones and Naguayán drains the area from east to west and

south to north, respectively. They contribute the main gulch almost east-west in the northern

part of the area, and tributaries from the Marimaca area in the northwest and the Quebrada

Naguayán almost north-south.

The watershed divides two physiographic domains: to the west the topographic differences

and steep drainage to the basin of Quebrada Mejillones, below 1,000 m.a.s.l; and to the east

a morphology of gentle hills that descend to the east and form the eastern limit of the

intermediate depression where the relief ascends over 1,000 m.a.s.l. Figure 4-3 shows these

aspects with vertical exaggeration (3 in Google Earth):


Figure 4-3 - Project location showing relevant physiographic elements. View toward NE.

5 History Project site and district’s exploration programs have been active since the Marimaca deposit

discovery in 2016. There is no verifiable history of mining prior to Marimaca 1 to 23.

The area was known since the end of the 19th century as “Mineral de Naguayán”. The

Mining Bulletin of 1928 (Kuntz, 1928) reports that several mines (Atahualpa, Leonor, Mala

Noche) existed but at that time they were inactive.

More detailed information in 1962 recognized the granodiorite intrusions by "dark dikes"

oriented north-south, inclined to the east, stated that the copper mineralization occurs within

the same system of parallel planes and commented on the extraction of small quantities of

direct smelting ores with very high copper grade (5 tonnes per week between 17% and 50%

Cu). Several of the deeper underground adits have reached sulphides described as

chalcopyrite, bornite and chalcocite.

Between the 70's and 90's there are only reports of reviews by geologists of the

government’s Institute of Geological Investigations (IIG) and ENAMI (Empresa Nacional de

Minería).

A study by ENAMI (Ilabaca, 2004), which included some short bore holes; refers to the

Marimaca 1 to 4 and 10 to 23 concessions in the central-west part of the property. The

description mentioned copper oxide mineralization in north-south oriented fractures and an

estimated resource potential of 200,000t at an average grade of 1.2% CuT.


The owners commissioned a geological study in 2003 (Alvarado, 2003) who described and

sampled a 10° oriented narrow veined system. The estimation of a potential resource

resulted in 566,000t at an average grade 2.8% Cu. Alvarado recognized an intense

fracturing and the three key directions of fractures and veins, azimuth 10 °, 40 ° and 270 °.

At least a couple of companies reviewed the property in the early 2000's, mostly juniors, but

none of them reported substantial mining potential. In May 2008, Minera Rayrock geologists

described the control of mineralization by a "pseudo-stratification" or a "pseudo-stratified

intrusive". The potential for copper oxide mineralization was estimated at 21 Mt of average

grade 0.8% Cu. After this memorandum (Hinostroza and Medina, 2008) there are no other

reports regarding the mining activities of the area.

In the meantime, new tenants developed small scale underground workings and others with

a higher degree of mechanization exploited the properties. Most of these ores were sold to

Michilla, ENAMI and Rayrock processing plants.

Before the exploration by MCAL, the property had only been exploited by small miners,

generating small pits whose dimensions do not exceed 20 by 15 m and depths of up to 20

m. Underground workings reach extensions of no more than 100 m. No organized

exploration work was carried out to discover and evaluate a mining resource with potential

interest for mid-level operations. MCAL was the first company to access the property with

the idea of explore an open pit, leachable deposit.

The area in general did not attract the interest of medium-sized mining companies that

thrived in the vicinity (within 60km) between the early 80s and early 2000s. The lack of

interest in the Naguayán sector is due to the fact that the area was considered with no

potential to become a major producer, even when ore from Marimaca, was sold for a long

time to Michilla and Rayrock (Ivan plant).

6 Geological Setting and Mineralization

6.1 Regional Geology Geological setting is largely based on the Mejillones and Peninsula of Mejillones 1: 100,000

geology charts by SERNAGEOMIN (Cortes, et al, 2007). This is complemented by structural

and petroleum studies carried out in the Mejillones Peninsula (Lucassen et al., 2000, Herve

et al., 2007, Casquet et al., 2014) and the Naguayán and Fortuna areas mapped by Cortes

et al., 2007. Economic geology studies of have been carried out by geology graduates of the

Universidad Católica del Norte (Vergara, 1985; Veliz, 1994; Gonzales, 2002).

The oldest exposed rocks are late Palaeozoic and Triassic age and correlate with

metasedimentary and intermediate intrusions basement rock of the Coastal Cordillera. The

area is characterized by intrusive bodies from early Jurassic to lower Cretaceous. The

intrusive units correspond to diorites, monzonites and monzodiorites with variations to


gabbro and, to a lesser extent, to quartz monzonites and metadiorites, dated 155-154 Ma.

This last unit hosts the mineralization in Marimaca .The mines of the Naguayán District are

located along the western contact (see Figure 6-1). The other important unit is the

volcanoclastic rocks of La Negra formation which extend to the north, south and east of the

area. Also below the pampa to the west where they are partly covered by conglomerates

and red sandstones of the Coloso Formation, assigned to the Cretaceous.

The Tertiary units correspond to marine sediments, which mark the paleo-coastal lines in the

Mejillones Peninsula and also to the south. Closer to the Project area, there are important

levels of alluvial gravels, interbedded with somewhat reworked ash levels. These are dated

from 12 to 20 Ma, coinciding with the catastrophic eruptions of ignimbrites that make up

much of the Altiplano and are located about 200 km east (Cortes et al, 2007).

An andesitic dyke swarm, with variations to diorites or even more acidic, that follow the

structural control north south to northeast, are observed throughout the area and are also

exposed in the sector of the Project. Their ages would be in the 146 to 147 Ma range

(Gonzales, 1996; Cortes, et al, 2007).

The project is located to the northwest of the Atacama Fault System Zone (ZFA), which

extends over hundred kilometres along the Chilean coast. The Antofagasta fault zone is a

subduction-related arc-parallel strike-slip Fault System that has been active at least since

the Jurassic, whose main trace has a curvature towards the west, as a disturbance of the

north-south general strike. The product of this curvature (Figure 6-1) predominate the

northeast trend. Parallel to this, other fault systems of regional importance neighboring the

project area control the morphology of the peninsula. In the Sierra Fortuna are exposed

milonites and sheared rocks cut by andesitic dykes from north to south to northeast. The

studies have shown that movements are essentially strike parallel, originated by Jurassic-

Cretaceous Transtensional events (Scheuber and Andriessen, 1992; Gonzales, et al., 2006;

Cortes, et al, 2007).


Figure 6-1- Regional Coastal Cordillera Geology (taken from Ramirez, 2007)

A shear zone of at least 3 km wide and extending for more than 15 km, north-south to north-

northeast oriented and inclined between 40 and 60° to the east and southeast, is a very

important feature, both in the geological setting and in the mineralization controls in

Marimaca and surroundings. In this report this zone will be denominated Naguayan Shear

Zone (ZFCN). The rock affected by the shear zone is the Naguayán intrusive and its

extension, and it’s easily observable in the field. The andesitic or more acidic Jurassic dyke

swarms follow this fracturing zone, generating systems of parallel dykes and sills, following

the inclination to the east of the fracture planes.


6.2 Metallogenic Setting

The area comprises “manto-type” copper deposits hosted in volcanites of the La Negra

Formation, as well as some IOCG-affiliated vein districts, hosted by Jurassic intrusives

(Espinoza et al., 1997; Maksaev and Zentilli, 2002). Towards the eastern border there are

some porphyry-type copper systems of late Jurassic to lower Cretaceous age (Figure 6-2).

Figure 6-2: Coastal Cordillera main Copper Deposits Location (taken from Ramirez, 2007)


The “manto-type” copper deposits typically correspond to sulfides and copper oxides hosted

in volcanic sequences, especially in the brecciated and vesicular upper portions of lava

flows. The variations are due to the relative predominance of structural control by local fault

systems.

The size of the individual manto deposits varies between 15 and 40 Mt of grade near 1%

CuT. Exceptionally, Mantos Blancos has resources for more than 200 Mt of grade near 1%

CuT. The by-product in concentration of minerals is Ag, which can reach grade of 10 to 20

g/tAg. Their location and good metallurgical and mining conditions have made these types of

deposits and their districts attractive for mining since the 1980's (Michilla, Mantos de la Luna,

Buena Esperanza, Ivan).

Vein deposits, with chalcopyrite-bornite and presence of magnetite, form districts hosted in

intrusive rocks, following east-west structural directions, perpendicular to the ZFA-dominated

system. They are related to the late Jurassic intrusive and have calco-sodic alteration halos.

Iron vein deposits exist in the area of Naguayán (Vergara, 1985, Venegas and Vergara,

1985). At present, the district is known as Cáprica and was exploited in the years 2010 to

2014. These deposits are very similar to the deposits of Fe of the III Region.

The copper porphyries of Jurassic upper and lower Cretaceous are located on the eastern

edge of the Cordillera de la Costa (Figure 6-2). These systems form clusters with low-grade

oxidized copper mineralization. None of these porphyries reaches the resource levels of the

large Tertiary systems located further east.

A key aspect of regional metalogenesis is the post-Cretaceous geomorphological and

climatic evolution that has allowed the generation of deep columns of supergene enrichment

and oxidation. In Michilla the oxidized and mixed minerals extend up to 200 to 250 m depth,

in Mantos Blancos the thickness of the oxides is of 100 to 150 m and in Marimaca of more

than 200 m. Despite the deficiency of pyrite in the systems, chalcopyrite and scarce pyrite

(equal to or less than 1% by volume) have been sufficient to give the required acid to leach

the sulphides and form the secondary enrichment zones and then continue the process of

leaching, to produce oxides or to oxidize primary sulphides generating in-situ

chalcocite/covellite. It is estimated that these phenomena have had a long duration since the

rise and contraction of the Jurassic-Cretaceous and especially since the Tertiary.

It is estimated that the rise of the Cordillera de la Costa was generated in the Lower Tertiary,

changing the climate due to the development of the Humboldt cold current (Bissig and

Riquelme, 2010). In this way the morphological evolution and the climatic control of the rains

has allowed the supergene zones to be generated and preserved from the Cretaceous.

6.3 Local Geology

The Marimaca Project is located in the Naguayán District in the Mesozoic Coastal Copper

Belt, where Mantos Blancos ~500 million tonnes and Ivan ~50 million tonnes, illustrate the


range of size and morphologies of copper deposits that occur. See Figure 6-3. They are

sited in a variety of host rocks and have differing morphologies; they have a common Cu-Ag

primary mineralogy zoned from bornite outwards to chalcopyrite and pyrite, with deep

oxidation and secondary enrichment.

The Marimaca property contains a number of NNE-SSW trending, ~60º E dipping, broad

shear zones, cross cut by later NE-SW oriented sub vertical feeder structures, all hosted by

Jurassic age intrusive rocks. The intersection of these structures has produced wide NW-SE

oriented highly fractured parallel zones of eastward dipping mineralization, that have been

exploited from a series of open cuts and small underground workings by small miners.

Surface mapping and drilling has shown that the mineralization is comprised of multiple,

thick, high grade structures bordered by lower grade halos.

Figure 6-3- Marimaca Project Geology Summary

6.4 Property Geology

6.4.1 Lithology Marimaca, is hosted in Monzonites (MON) and Monzodiorites (MZD) of equigranular texture

and coarse grain, this lithology is cut by dykes mainly of andesitic composition and variations

to aplitic, diorite and rhyolite (AND, APL, DIO, Figure 6-4).


The package exhibits remarkable fracturing by centimetric subparallel structural planes,

extending throughout the property. The intrusive shows a "pseudo-stratification" product of

the fracturing, which is also reflected in the control of the dykes system (also sub-parallel).

These are described as sills. This structural system is named as Banded Rock Structural

Zone (ZEB) or Shear Zone (ZDC) and forms an integral part with the Naguayán Shear Fault

Zone (ZFCN).

The Monzonites and Monzodiorites contain plagioclase, amphibole and less pyroxene, with

aggregates of feldspar and quartz in the more acidic variants (Figure 6-5). In the property,

local textural variations have been observed to more porphyritic or fine grained. Different

degrees of alteration can influence rock type classification towards more acidic variants (eg

granodiorites). Considering the different degrees of pervasiveness of alteration, there are no

significant textural changes, except for a subtle increase in grain size (Figure 6-4).

Figure 6-4- Main Rock Types (a) Wall Rock Monzonite (b) Andesitic Dyke

The andesitic dykes (sills) correspond to tabular bodies of hundreds of meters in length,

parallel to the structural banding, with widths between 2 to 4 m up to 50 m long, aligned for

several kilometers, oriented north to north-northeast and inclined between 40º and 70° to the


east. The widths vary from 30-50 cm to 5-10 m, being 1-2 m on average. The textures are of

fine grain, equigranular to slightly porphyritic of plagioclase and hornblende. The study of

thin sections under the microscope has shown that some dykes have quartz and feldspar

but in an amount that is not enough to classify them as dacites. It is common for andesitic

dykes to show vesicles, filled with quartz.

6.4.2 Structure

The development of the “Banded Structural Zone” (ZEB) or Shear Zone (ZDC) is the most

important structural feature in the project area. The system of parallel planar centimetric

structures is oriented north-south to north-east with dips to the east and controls the dykes

system. These dykes are cut and displaced by a system of faults oriented 40° dipping to the

southeast and by other faults, probably the youngest, striking-west to northwest (Figure 6-5).

Figure 6-5 - Parallel planar structures oriented north-south to north-east with east dips and dykes system

The ZEB or ZDC is the most ubiquitous structure of the project. Examining satellite imagery

it stands out easily as a marked system of lineaments, which are organized following

generally the north to north-northeast directions. This structural anomaly can be followed

continuously for about 15 km long and 3 to 4 km wide, with a more persistent central portion

of fracturing of 1 km wide. This is well exposed in the Marimaca area and in the Cerro

Naguayán area (Figures 6-5 and 6-6).

Figure 6-6 - Banded Structural Zone (ZEB) or Cizalle Zone (ZDC)


The average frequency of dykes, measured approximately in satellite images, is 40-50 m. In

the Marimaca zone this frequency is reduced to 10 to 5 m spacing. Nevertheless it maintains

the north-northeast general course, with some variations to the east and to north-east.

The sub-vertical northeast faults have been denominated "feeders", due to their direct

relation with the copper oxide mineralization in the more shallow parts of the deposit. This

relationship has not been proven with certainty in the drilling. These structures are faults,

with 0,2 to 0,5 m of width of gouge and fracturing zones between 1 to 5 m persistent over

300 to 400 m. Eight of these structures have been exposed in the pit walls and in

underground workings. A good part of old and more modern workings tried to follow these

faults as guides to high grade oxide mineralization. Their nature is accentuated to the east,

when reaching or breaching the hanging wall (HW) alteration / mineralization limit, showing

halos of phyllic alteration. In addition there are high contents of limonite derived from

oxidation of pyrite (Figure 6-8). Towards the central part, near the surface, their geometry as

veins is not so evident, because the evidence has been obliterated by the intense and

pervasive supergene alteration and the mineralization of copper oxides. In some diamond

drilling, deeper sections have been observed and they look like vein-faults, with abundant

copper mineralization.

Figure 6-4 - Feeders, showing hydrothermal alteration and halos of phyllic alteration

The interaction of the three systems of structures, in a very poorly reactive rock with the

generation of open spaces capable of being used by the migration of fluids, has been

considered as the key to understanding the geometry of the oxides bodies of Marimaca.

6.4.3 Alteration The Marimaca alteration consists of metasomatism with very little evidence of destructive

hydrothermal alteration (Carten, 1986; Putnis and John, 2010). The calco-sodic

metasomatism is manifested by the replacement of mafics by actinolite, magnetite and of

plagioclase by albite. Sometimes the occurrence of tourmaline and chlorite is quite common

replacing mafics in the interstices. Epidote in some spots and veinlets is observed in the

margins, outside the best mineralized zone. The Ca-Na metasomatism extends to a

considerable distance from the mineralized body. However, in the property it is possible to


observe the alteration associations that allow zoning in the hanging-wall (HW) and footwall

(FW). The footwall alteration contains more actinolite and magnetite, with variable degrees

of albitization, chlorite replacement. The hanging-wall alteration shows a more intense

albitization and development of more hematite than magnetite, a relative increase of

chloritization and the occurrence of disseminated pyrite whose surface oxidation leads to the

development of a weak "leach cap" and a strong argillic alteration.

The zone between the HW and FW hosts the mineralization, the alteration is intense and

consists of an increase in the replacement of albite-chlorite- (feldspar K) -actinolite-

magnetite. The albitization is very intense and in cases it produces changes in texture by

reducing the size of the grains and produce changes in the definition of rock types. This is a

“belt” between 250 and 300 m thick, which can be followed in the north-northeast orientation

with the average dip of the ZDC, near 50 ° to the east, and hosts most of the mineralization

discovered at Marimaca. See Figure 6-9.

Figure 6-9 - Main Rock Types (a) Wall Rock Monzonite (b) Andesitic Dyke

The andesitic dykes also show alteration by Ca-Na metasomatism. The alteration is as

intense as those that affect the MZD-MON, so that it appears that the dykes predate the

alteration event related to the mineralization, which is not very evident in the zone of oxides.


6.4.4 Mineralization Marimaca is a copper mineralization closely related a parallel fracture of the ZDC. This

control generates "stratiform" bodies’ defined in a purely geometric descriptive aspect

without a genetic component involved (Figures 6-10a and 6-10b). Figure 6-10 a and b - Views of stratiform mineralization and base boundaries of north south (b) view of

stratiform mineralization and distribution of Rajos 1 and 2, looking NE

Copper oxides and sulphides occur not only in structural discontinuities, but also following

transverse fracture patterns and some brecciated zones and as disseminations in the rock.

Its nature is not fully concordant with the main structural control, however, its 3D geometric

occurrence in zones of alteration-mineralization within a volume that has a foot wall and a

hanging wall is very well defined.

The copper oxides start from the surface, as confirmed by mining workings, surface

exposures, drill holes and surface geochemical samples (> 200 ppm Cu) for more than 700

x 300 m. The stratiform body of Cu oxides is oriented northwest. It measures 900 m long by

700 wide and extends in depth up to 400 m. Measured in the direction of the main control

10° / 50° the body reaches dimensions of 900 m wide, 900 m of extension in the dip

direction and 300 m of real width, perpendicular to the fracturing (Figure 6-11). Deeper

mineral areas of primary sulphides have not been considered for this work.


Figure 6-5 - View of the extent of surface mineralization according to geochemistry and mineral subzones

The deposit consists of a zone of Cu oxides, underlain by remnants of a mixed zone,

supergene sulfides and primary sulfides mixed with Cu oxides. Most of the body drilled to

date is in oxides. In the oxides, some remains of Cu sulphides have been observed showing

that the body was formed by a superimposed oxidation of primary sulphides.

The mineralization in the upper zone is of “green” and “black” copper oxides, which occur as

disseminations, coatings, fracture filling and following the structural fabric of the intrusive

country rock. The chief mineralogy is atacamite, brochantite and chrysocolla, together with

malachite and other varieties of Cu sulfates.

The “black” copper oxides are mostly wad and also some tenorite, copper bearing limonites,

and relicts of native Cu. They are usually observed surrounding the green oxides zones.

Based on the information of the mineralogy obtained from the logging, it is possible to

establish mineral subzones within the copper oxide body, based on dominant oxides:


chrysocolla, brochantite or wad. The chrysocolla and brochantite dominant subzones make

up the zone of green oxides and the wad are the black oxides. Even though they are usually

intercalated, the subzones show a broad zonation with chrysocolla dominant in the most

superficial portion and those of brochantite in the deep central part of the body, close to

relics of chalcocite and covellite. See Figure 6-12.

The wad subzone is located in the margins and extends several meters towards the edges

of the body, characterized by low CuT and CuS grades (0.2 up to 0.5 %Cu).

The base of the oxides is a surface that has been interpreted as a "top of sulphide" and has

been modeled in 3D, located at depths between 200 and 300 m. Its contour is irregular and

the hills and valleys show the control of the structures.

Figure 6-12 - Mineral subzones within the body of oxides based on dominant oxides: chrysocolla, brochantite and wad


The volumes with mixed mineralization are more continuous in the central-north part of the

mineralized body and are recognized from 150 m depth. Under the central part, they have

been interpreted as isolated bodies at depths of 300 m.

The secondary sulphide mineralization is quite restricted and consists of thin bodies with

chalcocite, covellite that replace in variable grade, chalcopyrite. Nevertheless at least part of

the covellite mineralization seems to be primary in origin.

The deepest drill holes have intercepted irregular columns of primary sulphides that consist

of massive chalcopyrite, accompanied by scarce pyrite and magnetite. In some diamond

drills the massive chalcopyrite follows the structural fabrics displaying different widths

ranging from 10-15 cm to 30 cm. Also occurs in some breccia characterized by red

fragments of country rock, magnetite and chalcopyrite cement. The breccias also follow the

control of ZDC-type fracturing.

It is interpreted that the zones of primary sulphides must be the natural continuation of the

oxide body following its stratiform geometry, which cannot be fully assured due to lack of

deep enough drilling. However, one core of primary mineralization has been identified below

the center of best Cu grade, located toward the center-east of the body. This has been

intercepted by RC holes and the cuttings show massive chalcopyrite mineralization. On the

other hand, the extension in the dip has been verified by the holes located towards the east

end, which, in depth, show increases in the contents of Cu, in relation to the pyrite and

chalcopyrite disseminations.

The pyrite contents are persistent but of very low abundance (1% or less in volume). In

general they form a halo around the mineralized body. Several drill holes intersect

disseminated and fracture filling pyrite mainly in the FW, towards the west of the body. The

halo of pyrite is more intense towards the HW as evidenced by the intersections of the drills

carried out in the east sector. Pyrite accompanies chalcopyrite in the Cu high primary zone.

The common gangue in the oxide zone is limonite, especially goethite-hematite with very

little jarosite. The limonite is related to the feeders, denoting a supergene action following the

subvertical fractures. Actinolite and chlorite are common gangue in the primary zone, rare in

the superficial parts, due to intense supergene alteration. Fractures with calcite are more

common in contacts with andesitic dykes. However, fine calcite, probably as product of

albitization, is related to the copper mineralization. The superimposed alteration associated

with the oxidation zone does not generate high amounts of clays that could negatively affect

the proposed leaching process.

The mineralization of oxides is quite uniformly occupying the volume of fractured and altered

rock. The existence of low-grade intercalations is a smaller amount and this is confirmed by

the grades of Cu in drills. Low grades are related to intense fracturing and leaching, and to

andesitic dykes. Nevertheless in their contacts, oxides and Cu usually increase. The

continuity of the mineralization and the definition in subzones are considered to be in


keeping with the data and the natural, structural and physicochemical controls of the

mineralization. A schematic distribution of the mineralization and structural controls, in

addition to the tentative positions of the FW and HW and the deep potential, is shown in the

scheme of Figure 6-13.

Figure 6-13 - Scheme of mineralization and main controls over the block model

7 Deposit Types The Marimaca copper deposit is located in an IOCG district of vein deposits (Venegas and

Vergara, 1985). The district context, however, is combined with Fe bearing structures

(Caprica) and the typical "manto-type" deposits in volcanic rocks (El Desesperado, Ivan).

The IOCG type brings together a very broad spectrum of occurrences with genetic

associations not yet resolved. Mineral occurrences in the Naguayán area can be considered

as part of the variety. Common factors are the regional metamorphism / metasomatism

enviroment, the Ca-Na alteration, the presence of magnetite and hematite, the dominant

chalcopyrite sulphide and a low overall content of sulphides (Sillitoe, 2003; Richards and

Mumin, 2013). Although the Au contents are low, the presence of Co, U, REE and Ag is

unknown. The proportion of magnetite is rather low, without a significant content of Fe in the

mineralization.


In the coastal range, where manto (Cu-Ag, feldspar-chlorite-albite) and IOCG (Cu-Fe-Au,

actinolite-albite-magnetite) vein type deposits have traditionally been found together, the

mineralization discovered in Marimaca does not fit well in either type. Although its shape in

purely geometrical sense is stratiform, its mineralized rock is an intrusive monzodioritc rock

and so far no other copper mineral occurrences of this type have been identified. Without

exception, all have form and genesis related with volcanic piles (Espinoza, et al, 1997). The

mineralogy of the sulphides and alteration resemble IOCG systems; however the lack of Fe

oxides and Au and the occurrence of hypogene chalcocite and covellite are not common in

IOCG deposits (Richards and Mumin, 2013). These features appear to be more frequent in

the “manto-type” deposits.

The variation from the FW-to-HW alteration has been reported in some manto deposits of

the size of Mantos Blancos and El Soldado (Maksaev and Zentilli, 2002; Ramírez, 2007), but

no cases are documented in the more typical IOCG (eg Manto Verde or Candelaria). In

summary, the mode of occurrence in a peculiar fracturing system in intrusive rocks,

highlights them as a type of deposit from which no analogies are known in Chile from recent

literature. On the other hand, the alteration and mineralization put it closer to the manto type,

such as El Soldado or Mantos Blancos.

.

Finally, a factor that also makes the occurrence of Marimaca different is the phenomena of

enrichment and oxidation, which extended for a long period of time, and contributed to

concentrate the deposit. The existence of moderate amounts of pyrite in the HW, available

to generate free acid and the condition of low reactivity country rock, are ideal to generate a

good supergene profile (Blanchard, 1968; Chavez, 2000). This set of events generated

several stages of cumulative secondary enrichment and oxidation. See Figure 7-1.

Figure 7-1 - Schematic Section through Marimaca Type Systems


Despite the genetic scenario, the district extension of intrusives, fracturing and of alteration,

in addition to the occurrence of mineralization, provides an attractive potential for the

exploration and discovery of other ore bodies of copper, in addition to the exploration of the

extensions of the known mineralization. All this forms the basis for future plans of exploration

of Marimaca and its surroundings.

8 Exploration Marimaca is an active exploration project. The exploration strategy is focused on an infill

program to improve the quality of the resources and targeting potential extensions of

currently known mineralization.

From the first semester of 2016, MCAL invested more than US$ 1.5 million in exploration to

identify mineral resources, primarily below the Marimaca small open pit, to the north and

south and then to the east and west, totaling 13,628 meters. A total of 6 holes were diamond

drilled and 54 were RC and the information from that program was used to define Measured,

Indicated and Inferred Resources.

Based on this exploration success, an exploration program is planned by MCAL for the 2017

period, targeting infill and the lateral extensions of the areas investigated.

The objective of this exploration program is to improve and define additional resources.

Based on the results of the exploration program implemented since 2016, the mineral

potential targeted by the proposed 2017 exploration program is estimated to upgrade

between 50% of the Indicated resources to Measured and 70% of the Inferred to Indicated

resources of oxide mineralization. The range of tonnage and grades expected from the

results of the proposed exploration program are estimated from the recent exploration

results. The range of quantity and grade estimates is derived from the surface areas of the

Mineral Resources projected over the areas that will be infilled by the 2017exploration

drilling programs. The reader is cautioned that the potential quantity and grade estimates

expected from the proposed 2017 to 2018 exploration program are conceptual in nature. It is

uncertain if the implementation of the proposed exploration program will result in the

delineation of new Mineral Resources

8.1 Surveying, Image and Topographic Base A photographic and photogrammetric survey, using UAV technology and digital camera,

covering ~ 2 km2, was used as the topographic basis of the Project. The flight resolution

was 8-13 cms per pixel, and a digital elevation model (DEM) was generated with

interpolated curves at 1 m for use at the 1: 1000 scale (Figure 8-1). The topographical

support was made by conventional topography, which from official bases generated a

sufficient network of points to balance and orthorectify the image and DEM.


Figure 8-1 - Topographic Base and Orthorectification

8.2 Surface Sampling During the due diligence period, prior to the signing of the MCAL option agreement,

superficial geological reconnaissance and orientation surveys were carried out. These

activities were restricted to the western part of the property, which has the largest amount

of mineralized exposures.

In a road cut at the northern part of the property, which crosses the entire mineralized

profile, a continuous sample of rock chips was collected along 150 meters, with samples

every 2 meters. 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 meters averaged 0.53% CuT and

0.43% CuS. Other results in cuts of the central-west part of the property are shown in

Figure 8-2.


Figure 8-2 - Sampling of road cuts, basic elements of the structure and mineralization from FW to HW

The samples were collected by MCAL personnel and prepared and tested (only with

laboratory quality controls based on the indicative nature of the samples) in the laboratories

of Andes Analytical Assay (AAA) in Santiago, Chile.

8.3 Surface Geologic Mapping

The first geological mappings were made by direct observations in old workings and road

cuts, sufficient to generate concepts regarding the type, controls and distribution of

mineralization and to outline an attractive potential for Coro.

Based on geochemistry and surface observations, the geological observations were

focused on the distribution of copper oxides and the ZDC “shear” zone that is the main

control for the continuity and intensity of mineralization. The structures 40° orientation or

“feeders” were also recognized. The basis for organizing this information was a mixture of

aerial images of the Drone at 1: 2000 scale, filters and rock geochemistry. Based on these

elements the sections with the interpreted distribution of the oxide mineralization were

generated and the drilling campaign was planned to test these projections in depth.

8.4 Geochemistry Considering the quality of the outcrops and that the mineralization of oxides reaches

surface, it was considered necessary to explore the total surface of the mining property

through a geochemical rock sampling grid. Due to the size of the mineralized zones, the

chosen grid was 100 x 100 m. The material collected was rock chips in outcrops around the

sampling point. The locations were obtained with GPS adjusted to UTM coordinates PSAD

56. A total of 83 samples of 5-6 kg of average weight were collected and sent to chemical

analysis.

Samples were collected by MCAL staff and prepared and analyzed by Cu in AAA. The

quality controls were the laboratory's own, considering the indicative character of the

sampling and that the value of the data is only complementary for the decision making and

subsequent evaluation of the property.


In relation to the results, 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 (Figure 6-10).

8.5 Geophysics

Geophysics was not used as a tool for exploration for the initial discovery of Marimaca.

However, to verify the relationship of the mineralization - in depth - with high magnetite

contents - a high resolution aeromagnetic survey was carried out using GeoMagDrone™

technology (GfDashttp://www.geomagdrone.cl/).

The survey was conducted in 2016 and its results with Reduction To Pole (RTP) process

and a 3D interpretation are summarized in Figure 8-3. The possibility of using this tool in

the district exploration is under review, through the feedback of the interpretation with

measurements of surface magnetic susceptibility.

Figure 8-3: RPT-processed magnetometry. GeoMagDrone™ flight data


8.6 NCL Comments The Marimaca project is, at present, primarily considered as an open pit project. Exploration

drilling completed by MCAL demonstrates potential for extending the oxide and sulphide

and for new discoveries amenable for mining. The infill program and the exploration

potential of MCAL properties remain good. NCL is of the opinion that the aggressive

exploration programs as envisioned by the company will continue to expand and improve

the quality of the mineral resources.

9 Drilling

In 2016 MCAL completed 60 boreholes in the Marimaca project. Six of these holes were

diamond drill holes (DDH), and the remainder reverse circulation (RC). All core boreholes

were drilled using HQ barrels. RC holes (5¾” to 5 5/8” diameter) were completed by

Perfochile Ltda. and core drilling by Superex SA. The majority of the boreholes were drilled

with an azimuth of 310 degrees and alternatively 220 degrees, with inclinations between -

55° and -60°. Borehole lengths average 334.68m for DDH and 215.19m for RC. Boreholes

were surveyed by Wellfield Services Ltda., personnel.

To test the continuity of the mineralization a 100 x 100 m grid was drawn, oriented NE and

NW. Two sets of vertical sections were interpreted. These sections were numbered at 100

m intervals, between NE 100 to NE 1000 and NW 100 to NW 800.

For the orientation, a geometric criterion was used, based on the idea of the genetic control

by the intersection of the orientations of the north-south structure and the 40° orientation of

the feeders, assuming a perpendicular flow of the fluids from these. In this way it was

determined that the optimal orientations of the grid were 310° for NW sections and 40° for

NE sections. The drill holes were located in both sections following 310° / -55° and 210° / -

55° orientations (Figure 9-1). The angle of -60° was used as operationally more suitable for

RC equipment and more perpendicular according to the inclination 50° east of the parallel

fracturing. Table 9-1 summarizes the drilling information for Marimaca.


Table 9-1: - Summary of Drilling Activities at Marimaca

The Holes were surveyed by Wellfield Services Ltda., with the exception of three, one core

and two RC boreholes, which haven’t been surveyed at the moment of preparing this

report. Moreover, the coordinate locations of Marimaca holes were compared to associated

proposed locations, topography, and GPS coordinates, to evaluate accuracy and identify

errors. There were no significant errors documented. All the time MCAL had the control of


the operation, but especially of the sampling intervals (regular to 2 m), the processes of

measurement the weight of the sample, and the split of the samples according to the MCAL

splitting protocols (Annex 2).

RC drilling samples were collected by MCAL and operational reports on each campaign

were issued. Drillhole locations, depths and sampling were coordinated on a daily basis

between contractor’s shift boss and MCAL’s field assistant. MCAL recovery and sample

collection protocols are in Annex 2.

Core recovery typically exceeded 90%. Borehole spacing in the resource areas is

approximately 100 metres and wider along the edges of the resource areas and beyond

(Figure 9-1).

Figure 9-1 – Collar locations on the Marimaca Properties

Table 9-1 shows the information of the collars of all drilled holes. They include data on

campaign, name, east and north coordinates (UTM PSAD 56), azimuth, inclination (both in

the collar) and depth. Figure 9-1 shows the distribution of the drill holes in the area.

The logged data are: rock, structure, alteration (basis of relative abundance and occurrence

of minerals), mineralization (same as alteration on the basis of individual minerals) on the

basis of drilling intervals, recoveries and analytical results. Only after validation are defined

the mineral and alteration zones, according to the geological criteria of the project. The

result is entered in the database as a table with all mapped data. A consolidated log of the

drill is prepared as a strip log at the end, to review the consistencies in graphic form.


The core was geologically logged capturing data of rock types, structure and mineralization-

alteration in the same way as in the logging of RC. The natural contact intervals were

added to the controls, leaving 2 m regularization for sampling. A first log was also made

with the complete core and the consistency of grades with mineralization was reviewed and

the mapping was adjusted when necessary. Stored data in tables were integrated into

databases and their consistency revised in the form of columns summaries or strip logs.

In addition to measuring deviations, most of the holes were surveyed using an optical

viewfinder probe (OPTV), with structures and orientation measurements, which

continuously and thoroughly records holes’ walls and measured structures. The structures

were measured in ranks according to their width and the results reported and plotted on

stereographic networks and roses diagrams (Figure 9-2).

Figure 9-2 - Examples of results of orientation measurements of structures by means of BHTV: (a)

record of measurements with hole image; (b) stereograms and diagrams of roses

NCL is of the opinion that the drilling and sampling procedures adopted by MCAL are

consistent with generally recognized industry best practices. The resultant drilling pattern is

sufficiently dense to interpret the geometry and the boundaries of the copper mineralization.

The core samples were collected by competent personnel using procedures meeting

generally accepted industry best practices. The process was undertaken or supervised by

suitably qualified personnel. NCL concludes that the samples are representative of the

source materials and there is no evidence that the sampling process introduced any bias.


10 Sample Preparation, Analyses and Security

10.1 Drillhole Sampling

Analytical samples informing the Marimaca Mineral Resources were prepared at the project

site and assayed at the Geolaquim Ltda. laboratory in Copiapo, certified in 2004 to ISO

9001:2000 by the DNV, and then updated to its 2005 and 2008 versions, for

commercialization, mechanical preparation and chemical analysis of mineral samples.

Compliance to the ISO standard is verified yearly.

The umpire laboratory was Andes Analytical Assay Ltda. in Santiago, certified in 2015 to

ISO 9001:2008 by the IQNET. MCAL only worked with AAA during the first RC drilling

campaign, and didn’t employ an umpire laboratory for the rest of campaigns.

The samples were transferred by the laboratory personnel from the project to Copiapo, and

then the preparation pulps were returned to generate the analysis batches with inserts for

the QA/QC program.

Upon reception, sample details are logged and insertion points for quality control samples

in the sample flow are determined. MCAL RC holes were sampled on a 2 m continuous

basis, with dry samples riffle split on site and one quarter sent to the laboratory by Coro

personnel, for preparation and assaying. A second quarter was stored on site for reference.

DDH samples were prepared using the following standard protocol: drying, crushing to

better than 80% passing -10#, homogenizing, splitting and pulverizing a 400 g subsample

to 95% passing -150#. All holes were assayed for CuT (total copper) and CuS (acid soluble

copper) by AAS. A QA/QC program, involving insertion of appropriate standards and

duplicates was employed with acceptable results.

Assay data were loaded directly from digital assay result files into the final database in

order to minimize sources of error.

10.2 Sample Rejects and Pulps Storage

RC boreholes chips are stored, at appropriate places in the field (old adits), as are

samples’ coarse rejects of about 8-9 kg weight, obtained from the third riffle pass.

The laboratory was requested to store in appropriate places of the project, all the

crushed rejects of DDH samples (-1/4 ")

Trays with half of DDH control, cutting boxes and backing bags of 1 kg of RC

samples

From the core extracted for metallurgical tests, a representative 10 cm core is left.

All pulps of the total samples collected in the project: sampling of cuts, geochemistry

and drilling are stored in paper envelopes and cardboard boxes in an orderly way in

the project.


10.3 Specific Gravity Data Sampling Specific gravity was measured systematically on core fragments taken from the deposit for

density and geotechnical issues. Specific gravity is determined using a water displacement

method with paraffin coating. The 184 fragments sampled are 7 to 26 centimetres long, with

an average specific gravity of 2.67 gr/cm3.

In order to obtain density measurements characterizing the Marimaca mineralized rocks,

test-samples were taken from core samples. The sample selection criteria and laboratory

tests are as follows: Each selected piece was logged in detail and photographed. They

were then sent to Calama's Rock Tests certified laboratories, for the corresponding unit

weights. The method was the weight-volume ratio, with previously kerosene waterproofed

and weighted in air and then, weighed submerged in water.

The variability of the weights is considered acceptable. The total of samples sent to density

characterization was 184. The first 22 were collected with criteria of rock-mineralization

units and correspond to pieces of about 20 cm of average length. The base was completed

by sending specimens corresponding to the remaining half of samples, collected almost

systematically. For this study another 162 samples were collected and measured in the

laboratories of Rocktest in Calama. For measurements of geomechanical parameters, 46

point load tests were performed in the rock-test laboratory in Calama. The samples were

selected by a geomechanical consultant. The information from the mappings was

incorporated into the databases in the relate tables.

10.4 Quality Assurance and Quality Control Programs The analytical quality control program implemented at Marimaca includes the use of control

samples, such as preparation and pulp duplicate, reference material and check samples

inserted within all samples submitted for assaying. The samples were distributed among

three different drilling campaigns:

First RC drilling campaign (MAR-1 to MAR-16): Only check samples, sent to AAA,

the umpire laboratory.

Second RC drilling campaign (MAR-17 to MAR-54): Preparation duplicate samples,

pulp duplicate samples and reference materials.

Core drilling campaign (MAD-01 to MAD-06): Pulp duplicate samples and reference

materials.

10.4.1 Standard Sample Analysis

Geostats Pty Ltd. provided 360 standard reference materials (SRM’s) of 9 different types for

use at Marimaca, with grades ranging from 0.103 to 2.185 percent copper. These were

inserted at an approximate rate of one every 16 samples for the second RC drilling

campaign (MAR-17 to MAR-54), totalling 275 samples, and at an approximate rate of one


every 12 samples for the core drilling campaign (MAD-01 to MAD-06), adding up to 85

samples. Figures 10-1 and 10-2 summarize the time sequenced analytical results of the

SRM’s used in the RC and core drilling campaigns, respectively.

Figure 10-1 - SRM Analysis (RC)

Figure 10-2 - SRM Analysis (Core)

The upper and lower acceptable limits shown outline boundaries of +/- 5% relative to each

certified SRM grade. Even though these limits are rather strict and could be further

improved by using confidence intervals provided by Geostats, it can be concluded that the

core drilling campaign (Figure 10-1) shows good SRM’s analytical results with only a few

outliers, while the RC drilling campaign (Figure 10-2) shows a greater number of outliers,


especially at the lower grades. This is to be expected given that lower grades are closer to

the detection limit and depend increasingly on the instrument’s numerical accuracy at the

decimal and centesimal scales. MCAL has protocols in place for handling analytical results

on standards that exceed acceptable limits, which ultimately can trigger a re-assay of

portions or of an entire sample batch.

10.4.2 Duplicate & Check Sample Analysis This involves 270 preparation duplicate (PRD), 370 pulp duplicate (PUD) and 239 check

samples (CHD). As mentioned previously, CHD samples were used as the sole quality

control measure for the first RC drilling campaign (MAR-1 to MAR-16), and were taken at

an approximate rate of one every 6 samples. PRD samples were inserted exclusively for

the second RC drilling campaign (MAR-17 to MAR-54), at an approximate rate of one every

16 samples. A batch of 275 PUD samples was also inserted during this campaign, at the

same rate. The core drilling campaign (MAD-01 to MAD-06) contains 95 PUD samples,

inserted at an approximate rate of one every 12 samples. Figures 10-3; 10-4; 10-5 and 10-6

summarize the results of PRD and PRU samples in the RC and core drilling campaigns,

respectively.

Figure 10-3 - Original vs Check Samples (RC)

Figure 10-4 - Original vs Check Samples (RC)


Figure 10-5: Original vs PUD Samples (RC)

Figure 10-6: - Original vs PUD Samples (Core)

Even though the quality control measures used for the first RC drilling campaign aren’t as

reliable as the ones put in place for the other campaigns, and that a more comprehensive

analysis would be preferred, it can be concluded that the analytical results on all batches of

check and duplicate samples processed and analyzed indicate very good reproducibility, as

expressed by the R2 coefficient present in the previous figures. These results indicate the

sampling process is not introducing bias, and that samples are representative.

10.4.3 Blank Sample Analysis

Information received by NCL did not include a database of blank samples, and upon

questioning, Coro confirmed that they did not use this type of control during their

campaigns. This omission is not irrelevant, but it can be partially mitigated by reviewing the

quality controls performed and reported by the laboratory. NCL had access to the QA/QC

protocols of Geolaquim, the primary laboratory, and to the reports of AAA, the umpire

laboratory, and both seem to have well-structured quality control measures in place,

including the insertion of blank samples.


Adding this to the fact that the SRM’s and duplicate samples analyses are acceptable, NCL

considers that there’s low probability for contamination in the different assays performed.

Nevertheless, for a future quality control analysis, NCL recommends the preparation of

check sample batches with control samples, including blank samples, to verify this

assertion.

10.5 Sample Security

All drilling assay samples are collected by company personnel or under the direct

supervision by company personnel. Samples from Marimaca were processed at the project

site and shipped directly from the property to the Geolaquim laboratory.

Assay samples are collected by appropriately qualified staff at the laboratories. Sample

security involved two aspects: maintaining the chain of custody of samples to prevent

unnoticed contamination or mixing of samples and rendering active tampering as difficult as

possible.

During the site visit, NCL found no evidence of active tampering or in adverted

contamination of assay samples collected on the Marimaca properties.

10.6 NCL Comments NCL reviewed the field procedures and performed their own extensive analytical quality

control with data provided by Coro. In the opinion of NCL, company personnel used care in

the collection and management of the field and assaying exploration data. Based on reports

and data available, NCL has no reason to doubt the reliability of exploration and production

information provided by Coro. The reports and analytical results projected by NCL suggest

that, even though there are minor concerns regarding some of the SRM’s assayed values

and the absence of blank samples, analytical results delivered by the laboratories used by

Coro are free of apparent bias.

NCL considers that the sampling preparation, security and analytical procedures used by

Coro are consistent with generally accepted industry best practices, and recommendations

were made to further improve them. Therefore, it’s in the opinion of NCL that these are

adequate to support the Project’s Resource estimation.

11 Data Verification

11.1 Verifications by Coro

The exploration and production work completed by Coro is conducted using documented

procedures and involved verification and validation of exploration and production data, prior

to consideration for geological modelling and Mineral Resource estimation. During drilling,

experienced geologists implemented industry standard measures designed to ensure the

consistency and reliability of the exploration data.


Quality control failures are investigated and appropriate actions are taken when necessary,

including requesting re-assaying of certain batches of samples.

11.2 Verifications by NCL

In accordance with National Instrument 43-101, professionals under the supervision of NCL

visited the Marimaca properties from 6 to 7 of December 2016, accompanied by Sergio

Rivera Exploration Vice president of Coro. The team included Ricardo Palma, P. Ing. and

Luis Oviedo P. Geo. qualified to National Instrument 43-101.

Site visit took place and all aspects that could impact materially the integrity of the borehole

databases (core logging, sampling, and database management) were reviewed with Coro

staff. NCL was able to interview staff to ascertain exploration procedures and protocols.

NCL examined core from a number of boreholes and found that the logging information

accurately reflects actual core. The lithology and grade contacts checked by NCL match the

information reported in the core logs.

NCL toured the Marimaca area and observed diamond and RC drill sites, collars and

maintenance.

NCL reviewed the borehole databases, for the preparation of this technical report, NCL was

able to produce the block models, tonnage and grade evaluations to a satisfactory degree.

NCL also completed statistical comparison of the global block models grade against the

informing drilling data and visually compared on plans and sections the block models

against the informing samples to confirm that the various models are generally an adequate

representation of the distribution of the copper mineralization.

12 Mineral Processing and Metallurgical Testing Third party column test work had been carried out on material extracted from the Marimaca

surface workings prior to Coro’s involvement in the project, and this indicated 75-85% CuT

recoveries and 20-40kg/t net acid consumption.

Four types of leachable copper oxide mineralization were identified in logging and were

modelled separately in the resource estimation: Acid solubilities in the oxide zones are

good at 76% for all assays greater than 0.1% CuT and rising to 81% for all samples greater

than 0.3% CuT. This is consistent with previous preliminary column test work carried out

from surface samples noted above.

Column test work is in progress at the moment of preparing his report.


13 Mineral Resource Estimates

13.1 Introduction Mineral Resources were estimated for the Marimaca deposit, which most likely will be

mined by open pit methods. The Marimaca open pit Mineral Resource model was

generated by NCL

NCL reviewed and audited the models generated by Coro. This section outlines the Mineral

Resource estimation methodology and summarizes the key assumptions adopted for the

generation of the Mineral Resource models.

In the opinion of NCL, the resource evaluation reported herein is a reasonable

representation of the Mineral Resources found at Marimaca at the current level of sampling.

The Mineral Resources have been estimated in conformity with generally accepted CIM

Estimation of Mineral Resource and Mineral Reserves Best Practices Guidelines and are

reported in accordance with Canadian Securities Administrators’ National Instrument 43-

101.

Mineral Resources are not Mineral Reserves and have not demonstrated economic

viability. There is no certainty that all or any part of the Mineral Resource will be converted

into Mineral Reserve.

13.2 Resource Estimation Procedures The main objective of this chapter was to build the resources model of the Marimaca

deposit and produce the first resource estimates.

Main stages of the study were:

Analysis of exploration data and definition of the estimation populations.

Generation and Validation of composites.

Validation of three-dimensional solids to the defined population.

Statistical analyses of the composites of the different variables in each population.

Variography and anisotropy analyses. Definition of preferential directions,

calculation and adjustment of variograms per population and elements to be

estimated.

Detection and treatment of outliers.

Definition of the Block Model.

Definition of the estimation strategy and Kriging plans per element and population.

Estimation of grades for each element of each population.

Categorization of resources.

Validation of the Model through:


o Comparative statistics between composites and estimated blocks.

o Analyses of smoothing of grades.

o Moving window analyses of composites and blocks estimated in different

directions.

o On screen validation.

Final Report of the geological resources by category.

Programs from the GSLIB library were used for the geostatistical analyses and the block

model was generated using Gems software. The final model and database are available in

Gems and ASCII format, to be loaded using software that Coro determines.

13.3 Database

The basic information for this study has been provided by MCAL and corresponds to:

Drilling database, with the following major information: o Identification of 60 drill holes with: UTM coordinates of collars, total length,

Interval, Dip and Azimuth. o Samples with: intervals from and to, analyses of total (CuT %), Cu

sequential (CuS, CuCN. y Cu Residual), Au and type of mineralization (Oxide, Enriched and Primary).

o 22 sections NEast and NWest, each 100 m apart, with the interpretation of mineralized zones (Oxide, Enriched and Primary).

Results of 184 specific gravity measurements. Details of available information are presented below.

13.3.1 Drilling Database

The drilling database comprehends Diamond Drills (DDH) as well as Reverse Circulation

(RC) holes. Table 13-1 presents the information contained in the database.

Table 13-1: Database General Information.

Total DDH RC

# Drillholes 60 6 54

Drilled mts 13,628 2,008 11,620

Total Samples 6,763 1,003 5,760

Total DDH RC

# Samples Meters # Samples Meters # Samples Meters

Samples with CuT>0 6,763 13,561 1,003 2,005 5,760 11,556

Samples with CuS>0 6,763 13,561 1,003 2,005 5,760 11,556


All samples without any grade value in the database were eliminated previous to the

resource modeling, also values labeled <0.001% were changed to 0.001% for both CuT

and CuS.

13.3.2 Geological Interpretation

MCAL produced NE and NW sections following the 100x100m drilling grid, with outlines of

estimation domains. These units were interpreted based on the different lithologies,

alterations and minerals mapped in surface and sub-surface, as well as anisotropies

identified in structural analyses, and were created for estimation purposes.

The four zones of interest for Resource estimation purposes are Brochantite; Chrysocolla;

Wad and Mixed and were coded in the block model using the solids of the geological

model described previously as shown in Table 13-2.

Table 13-2: Mineral Zone Codes

Code Description

1 Brochantite

2 Chrysocolla

3 Wad

4 Mixed

As an example, Figure 13-1 presents a section with the geological interpretation of the

major units.

Figure 13-1: Geological Interpretation, Section NW 300 viewed to SW)

Brochantite

Chrysocolla

Wad

Mixed


Using the digitized outlines (polylines) of these sections, NCL built Leapfrog 3D volumes of

the four key estimation domains: Chrysocolla (CRIS), Brochantite (BROC), Wad (WAD),

and Mixed (MX), as shown in Figure 13-2.

According to MCAL, the NE sections provide the most reliable interpretation of the

geological units, so this set of sections is the one controlling the volumes. The NW

sections were outlined following the NE set, and provided a secondary control of the

interpolations, as did the drilling intervals for each unit, which were expected to be

contained inside its corresponding volume.

In addition to the main geological controls, NCL applied a set of structural trend

parameters which gave the volumes uniformity and continuity in between sections and,

finally, added some polylines to give further consistency to the model, where the original

interpretation was insufficient or where the interpolations didn’t deliver expected results.

Figure 13-2- Key estimation domains of Marimaca

After comparing the Marimaca Mineral Resource model against the informing composites

and the statistics of the model, NCL concludes that the modeling approach produced a

reasonable and reliable model.


13.4 Sample Statistics

Based on the generated solids codes, each sample from the database has been coded,

according to the solid that contains the sample centroid. Tables 13-3 and 13-4 show the

basic statistic per population, according to the original database codes and the new codes

obtained from the 3D solids.

Table 13-3: Sample Statistic for CuT.

Brochantite Chrysocolla Wad Mixed

Original Raw Data CuT

N° Samples 870 977 397 1364

Min (%) 0.028 0.02 0.088 0.001

Max (%) 10.48 6.06 2.46 0.55

Average (%) 1.03 0.71 0.40 0.06

STD 1.03 0.62 0.26 0.06

CV 1.00 0.87 0.65 0.87

Solid Coded Data CuT

N° Samples 1054 1381 909 253

Min (%) 0.002 0.001 0.002 0.006

Max (%) 10.5 9.8 2.4 4.5

Average (%) 0.82 0.59 0.22 0.46

STD 1.03 0.70 0.26 0.66

CV 1.3 1.2 1.2 1.4

Table 13-4: Sample Statistic, CuS

Brochantite Chrysocolla Wad Mixed

Original Raw Data CuS

N° Samples 870 977 397 1364

Min (%) 0.008 0.01 0.011 0.001

Max (%) 10.47 5.24 2.22 0.51

Average (%) 0.84 0.57 0.24 0.03

STD 0.93 0.52 0.21 0.04

CV 1.10 0.91 0.85 1.24

Solid Coded Data CuS

N° Samples 1054 1381 909 253

Min (%) 0.001 0.001 0.034 0.001

Max (%) 10.5 6.3 1.0 4.1

Average (%) 0.62 0.45 0.13 0.19

STD 0.85 0.55 0.23 0.34

CV 1.4 1.2 0.5 1.8


The differences in the figures of raw data and re-coded, are a function of the deposit’s

mineralization and the smoothing of the solid model, which is particularly noted in the

Mixed population.

13.5 Composite Statistics

An analysis of the samples’ length was done in order to check if regularization was

required (compositing). Practically all the samples are 2 meters long, only one sample

inside the modeled solids has 1 meter long and the rest are 2 meters long, so it was

concluded that no further action in this regard was needed.

Therefore, the samples to be used in the grade modeling process are the raw samples

from the drillhole database, coded according to the solid that contain their centroid.

Tables 13-5 and 13-6 show the statistics of the final populations used in the grade

modeling process.

Table 13-5: Sample Statistic for CuT, per Rock Type.

Total Copper (CuT)

Domain N°Data Min % Max % Average % STD % CV

Brochantite 1054 0.002 10.48 0.82 1.03 1.25

Chrysocolla 1381 0.001 9.85 0.59 0.70 1.20

Wad 909 0.002 2.42 0.22 0.26 1.18

Mixed 253 0.006 4.53 0.46 0.66 1.45

Total 3597 0.001 10.48 0.55 0.77 1.39

Table 13-6: Sample Statistic for CuS, per Rock Type.

Soluble Copper (CuS)

Domain N°Comp Min % Max % Average % STD % CV

Brochantite 1054 0.001 10.47 0.62 0.85 1.37

Chrysocolla 1381 0.001 6.32 0.45 0.55 1.22

Wad 909 0.034 1.00 0.13 0.23 1.68

Mixed 253 0.001 4.06 0.19 0.34 1.80

Total 3597 0.001 10.47 0.40 0.62 1.54

It can be noted from the above given tables, that all the samples with CuT grade has a

CuS value. A check for eventual CuS values greater than CuT grades was done and no

contradictions were found.


13.6 Contact Analyses

The contact characteristics between the units to estimate have been reviewed according to

the mean grade of the samples, in relation to their distance to the contact defined in the

solids model. Figures 13-3, 13-4 and 13-5 show the behavior of the grades along the

border of the contact between the units.

Figure 13-3: Brochantite - Chrysocolla Contact, CuT

Figure 13-4: Brochantite - Wad Contact, CuT


Figure 13-5: Chrysocolla - Wad Contact, CuT

As can be noted in the above figures, the contact between both green oxides seems

gradual, and the contact between green and black oxides looks hard. Based on these

observations, it has been decided to estimate both green oxides together and the Wad

independently. Table 13-7 summarizes the conclusions of the contact analysis:

Table 13-7: Types of Contact

Brochantite Chrysocolla Wad

Brochantite - Soft Hard

Chrysocolla Soft -

Wad Hard Hard -

13.7 Variography – Calculation and Adjustment of Variograms

The variography of CuT and CuS has been developed using the samples of the

populations derived from the Contact Analysis: Brochantite + Chrysocolla and Wad.

Correlograms were calculated, instead of conventional variograms, as they are more

stable.

Correlograms in distinct directions were calculated, according to visual tendencies and

discussions with Coro’s technical team. A range of directions were tested, selecting those

with better results. The determination of the nugget for each population was done using

the down-the-hole correlograms.


Finally, for each population, the Correlograms have been calculated and adjusted,

according to the preferential directions defined and shown in Table 13-8:

Table 13-8: Correlograms Preferential Directions

Brochantite Chrysocolla Wad

Eje Azimuth Dip Azimuth Dip Azimuth Dip

X' 90 -50 90 -50 90 -50

Y' 0 0 0 0 0 0

Z' 90 40 90 40 90 40

Tables 13-9 and 13-10 show the parameters of the adjusted Correlograms. For the Mixed

population, no adequate correlograms were found, so it was decided to use Inverse

Distance Square (ID2) for the grade interpolation.

Table 13-9: Correlograms, Adjusted Models CuT

Domain Nugget

1st Structure 2nd Structure 3rd Structure

Sill 1 Range (m) Sill 2 Range (m) Sill 3 Range (m)

X' Y' Z' X' Y' Z' X' Y' Z'

Brochantite 0.25 0.2 10 5 1 0.15 10 55 30 0.4 48 55 30

Chrysocolla 0.25 0.2 10 5 1 0.15 10 55 30 0.4 48 55 30

Wad 0.25 0.52 10 15 5 0.23 15 10 35

Table 13-10: Correlograms Adjusted Models CuS

Domain Nugget

1st Structure 2nd Structure

Sill 1 Range (m) Sill 2 Range (m)

X' Y' Z' X' Y' Z'

Brochantite 0.35 0.15 5 10 5 0.5 50 60 55

Chrysocolla 0.35 0.15 5 10 5 0.5 50 60 55

Wad 0.4 0.35 5 10 10 0.25 15 40 40

The experimental Correlograms and the adjusted models of each population and

preferential direction were calculated.

As an example, obtained correlograms for Brochantite & Chrysocolla are presented in

Figures 13-6, 13-7 and 13-8.


Figure 13-6: Correlogram CuT - Brochantite & Chrysocolla - Hz

Figure 13-7: Correlogram CuT - Brochantite & Chrysocolla – Hz – Az=90º - VT 40º

Figure 13-8: Correlogram CuT - Brochantite & Chrysocolla – Az = 90º - VT -50º


13.8 Definition and Generation of the Block Model

For the final estimation of the grades, it has been decided to utilize a block model of

5m*5m*5m, rotated N 40º E, in order to match with the geological sections. Table 13-11

presents the geometric parameters of the model.

Table 13-11: Definition of the Block Model.

Axis Origin N° of Blocks Block Size Extension (m)

X 375,250 210 5 1,050

Y 7,434,600 252 5 1,260

Z 700 100 5 500

Rotation N40E

Using the interpretation of the Oxide, Enriched and Primary, the respective models were

generated, assigning the codes defined per each block of the model, using the intersection

of the blocks and the respective solids. According to the blocks and the definition of the

populations, a final model has been generated with a unique code per each block of the

model. Table 13-12 and Figure 13-9 present a summary of the codification used.

Table 13-12: Total Coded Blocks

Domain N°Blocks Volume m3

Brochantite 97,329 12,166

Chrysocolla 93,109 11,639

Wad 137,526 17,191

Mixed 20,614 2,577

Total 348,578 43,572

13.8.1 Geological Model The remaining blocks below surface topography were coded as waste. A validation of the

correctness of the rock coding was done, checking some sections and plans on screen.

Figure 13-9 shows Section NW 300, with the solid’s contour, the coded boreholes and the

block model.


Figure 13-9: Solids - Blocks and Samples - Section NW 300 view to SW

13.8.2 Specific Gravity Model

The average specific gravity of each estimation unit was calculated using a set of 184

measures, divided according to each mineral zone. Three outliers were eliminated, one

coded Broc = 3.37 t/m3 and two coded LXF, one very high = 3.46 t/m3 and another too low

= 1.91 t/m3. Table 13-13 shows the density per population.

Table 13-13: Specific Gravity per Unit

Count 184 55 58 10

Mean (t/m3)

2.65 2.62 2.65 2.71

Max (t /m3)

3.46 2.74 2.87 2.91

Min (t /m3)

0.00 2.15 2.25 2.51

Std 0.239 0.120 0.111 0.113

13.9 Kriging Plans and Resource Classification Criteria

Once the correlograms were calculated and adjusted for each population, grade values for

CuT and CuS in each population were estimated. The grade interpolation method selected

was Ordinary Kriging, attending to the nature of the deposit and the data availability. The

kriging was done using the software Gems.


Four kriging plans were defined, to be executed in sequential order. The general concept

is to “fill” the grades model, starting with a restrictive estimation plan which considers only

interpolation between drill holes, separated distances below the equivalent of 85% of the

variogram sill. Then, the following plans increase the search distance and release other

restriction gradually, until the estimation is complete.

The distance, where the correlogram reaches the value equivalent to 85% of the sill, is

called D85, and is used as a referential value to the different kriging plans.

The geometric parameters of the estimation of each kriging plan are shown in Table 13-14.

Table 13-14: Kriging Plan Parameters

Estimation Plan 1 2 3 4

Max N° Composite per Octant 5 5 5 5

Min N° of Octants with inf. 3 3 1 1

Min N° of Composites 8 6 4 4

Max N° of Composites 12 12 12 12

Search Range D85 2 x D85 4 xD85 1,000

Each population of blocks is estimated with samples of the same population.

The utilized D85 for each population are shown in Table 13-15. It can be noted that

anisotropic search was used for all estimation units:

Table 13-15: D85 per Direction and Population (m)

D85 - X D85 - Y D85 - Z

CuT - Broch + Chry 25 30 15

CuT - Wad 6 7 12

CuS - Broch + Chry 25 30 15

CuS - Wad 6 7 12

Outliers

An analysis of the existence of outliers in the estimation populations was done using the

log-probability curves for each samples’ population, looking for some singularities in the

curves that may signal the presence of an outlier limit.

Figure 13-10 shows, an example, the log-probability plot of brochantite:


Figure 13-10: Log-Probability Plot CuT – Brochantite

Based on the shape of the curves, the outliers’ limits were defined for each population, as

shown in Table 13-16.

Table 13-16: Outliers Limits.

CuT (%) CuS (%)

Capping Capping

Brochantite 4.5 4

Chrysocolla 3.5 3.2

Wad 1.6 1.3

Mixed 1.8 1.5

Values greater than the above, defined limits were made equal to the limit for grade

estimation purposes.

13.10 Grades Estimation Results

Upon completion of grades estimation, Table 13-17 summarizes the number of blocks

estimated in each kriging pass per kriging domain.


Table 13-17: Estimation Results; Cut and CuS

Domain Total N° Blocks

Total N° Blocks

Estimated

Total N° Blocks Total N° Blocks Total N° Blocks Total N° Blocks Total N° Blocks

Estimated in 1st Pass Estimated in 2nd Pass Estimated in 3rd Pass Estimated in 4th Pass Total

Number of Blocks

% of Total Estimated

Number of

Blocks % of Total Estimated

Number of

Blocks % of Total Estimated

Number of Blocks


Number of Blocks


Brochantite 97,329 97,329 7,080 7% 22,519 23% 48,211 50% 19,519 20% 97,329 100%

Chrysocolla 93,109 93,109 9,987 11% 29,275 31% 44,262 48% 9,585 10% 93,109 100%

Wad 137,526 137,526 251 0% 2,169 2% 20,779 15% 114,327 83% 137,526 100%

Mixed 20,614 20,614 102 0% 659 3% 6,226 30% 13,627 66% 20,614 100%

Total 348,578 348,578 17,420 5% 54,622 16% 119,478 34% 157,058 45% 348,578 100%


13.11 Classification of Resources

Resource Classification has been done according to the conditions defined by the number

and location of samples in the neighborhood of each block. This criterion attends the

requirements established at the CIM code.

The 1st pass generates block estimates with a minimum of two drill intercepts, both within

distances shorter than the D85 (distance corresponding to the point where the correlogram

reaches 85% of the sill); The 2nd pass maintains the restriction of the number of drill

intercepts, but enlarges the search range by twice the D85. These two passes generate the

demonstrated resources. The 3rd pass increment the search radius to 4 times the D85 and

reduces the number of drillholes within this range to one, generating Inferred Resource. A

fourth pass was added using a very large search radio, in order to ensure that all the

blocks inside the geological model are estimated. This fourth pass generates Potential

Resource.

Taking these criteria into account, the categorization of resources has been done

according to Table 13-18.

Table 13-18: Kriging Passes and Resource Classification

N° Kriging Search Range N° Intercepts Classification

1 D85 2 Measured

2 2 x D85 2 Indicated

3 4 xD85 1 Inferred

4 1,000 m 1 Potentially mineralized

A classification code was added to the block model. The codes utilized to this model are:

1, Measured; 2 Indicated; 3 Inferred and 4 Potentially mineralized rock.

13.12 Resource Model Validation

Three validation exercises were done in order to ensure the quality of the generated block

model, as discussed in this chapter.

Visual Validation

Statistic Validation

Moving window Analysis

The results of these validations are presented below.


13.12.1 Visual Validation

A visual inspection on screen of several plan views and vertical sections of the block

model was done and the grades of the blocks and the drill holes have been compared.

Also the resource classification was analyzed comparing the existing information. As an

example, the results of this validation are presented in Figures 13-11, 13-12 and 13-13.

Figure 13-11: Visual Revision of the Model of CuT – Section NE 300

Figure 13-12: Visual Revision of the Model of CuT – Section NE 500


Figure 13-13: Visual Revision of the Model of CuT – Plan view 950

13.12.2 Statistic Validation

The grades of composites and blocks have been compared statistically. Tables 13-19 and

13-20 present a comparison of the basic statistic of composites and blocks per population.

Also included in the comparative table are the declustered grades, obtained through the

technique of nearest neighbors.

Table 13-19: Statistic Comparison, Blocks vs Composites – CuT

N° Samples Minimum (%) Maximum (%) Average (%) STD C.V.

Brochan

Kriging Blocks 97,329 0.017 3.18 0.66 0.34 0.52

NN Blocks 97,329 0.000 4.50 0.61 0.64 1.05

Samples 2,435 0.001 4.50 0.67 0.75 1.12

Cris

Kriging Blocks 93,109 0.017 2.55 0.50 0.29 0.57

NN Blocks 93,109 0.001 3.50 0.47 0.58 1.23

Samples 2,435 0.001 3.50 0.66 0.70 1.06

Wad

Kriging Blocks 137,526 0.003 1.04 0.19 0.08 0.43

NN Blocks 137,526 0.002 1.60 0.16 0.19 1.20

Samples 909 0.002 1.60 0.22 0.25 1.14

Mixed

Kriging Blocks 20,614 0.019 1.70 0.42 0.24 0.58

NN Blocks 20,614 0.006 1.80 0.39 0.45 1.16

Samples 253 0.006 1.80 0.41 0.47853 1.16


Table 13-20: Statistic Comparison, Blocks vs Composites – CuS

N° Samples Minimum (%) Maximum (%) Average (%) STD C.V.

Brochan

Kriging Blocks 97,329 0.003 2.81 0.48 0.28 0.59

NN Blocks 97,329 0.001 4.00 0.45 0.52 1.16

Samples 2,435 0.001 4.00 0.51 0.63 1.22

Cris

Kriging Blocks 93,109 0.003 2.25 0.38 0.24 0.64

NN Blocks 93,109 0.001 3.20 0.35 0.47 1.37

Samples 2,435 0.001 3.20 0.51 0.60 1.18

Wad

Kriging Blocks 137,526 0.001 0.83 0.11 0.07 0.62

NN Blocks 137,526 0.001 1.30 0.09 0.15 1.68

Samples 909 0.001 1.30 0.13 0.21 1.57

Mixed

Kriging Blocks 20,614 0.004 1.04 0.20 0.15 0.79

NN Blocks 20,614 0.001 1.50 0.19 0.26 1.38

Samples 253 0.001 1.50 0.18 0.25 1.40

From the tables it is concluded that the estimation generates robust results, from a

statistical point of view.

13.12.3 Trend Analyses

For trend analyses of the block model, the mean and the declustered mean of the samples

has been compared with the block results. In order to decluster the composites, the

method of nearest neighbor has been used, introducing a third figure in the analysis. The

comparison of mean grades of blocks versus direct mean and declustered mean of

composites for each estimation domain, are presented in the following pages. Graphs

include the number of composites per slice as a graph bar. As an example, the results of

this validation for Brochantite are presented in the next figures (13-14, 13-15 and 13-16):

Figure 13-14: Trend Analysis – Brochantite – EW Direction


Figure 13-15: Trend Analysis – Brochantite – NS Direction

Figure 13-16: Trend Analysis – Brochantite – Elevation

Same analysis was made for Chrysocolla and Wad and, in general, the estimated mean

behaves in a satisfactory way, similarly with the declustered mean. An excessive

smoothing is not observed. Generally, the declustered grades are lower than the mean

samples, when the differences between them are higher. Moreover, declustered grades

are normally situated between them and closer to the declustered mean. From moving

window and tendencies of presented grades, it is concluded that the model of estimated

grades, preserves the characteristic of the mean grade, global variability and tendencies of

the original samples.


13.13 Reasonable Prospects for Eventual Economic Extraction

The CIM Definition Standards for Mineral Resources and Mineral Reserves (May 2014)

establish a Mineral Resource as:

“A Mineral Resource is a concentration or occurrence of solid material of economic

interest in or on the Earth’s crust in such form, grade or quality and quantity that there

are reasonable prospects for eventual economic extraction. The location, quantity, grade

or quality, continuity and other geological characteristics of a Mineral Resource are

known, estimated or interpreted from specific geological evidence and knowledge,

including sampling.”

The above definition normally implies that there exists some quantity of material that

meets a defined economic threshold and that the Mineral Resources are reported at an

adequate Cutoff Grade (COG) that considers the defined technical-economic scenario

assumed for the project. It must be clarified that Mineral resources are not Mineral

Reserves, as they haven’t demonstrated their economic viability yet. Table 13-21 shows

the technical-economical parameters used to determine the Resource inside a pit

generated using the Lerchs & Grossmann algorithm inside the software Whittle:

Table 13-21: Technical – Economical Parameters for Pit Optimization

Value

Cu Price 3.20 US$/pound

Base Mining Cost 2.8 US$/t

Mining Cost Increment going up 0.01 US$/t per bench

Mining Cost Increment going down 0.01 US$/t per bench

Slope angle 45°

Processing cost

Oxides 10,5 US$/t

ROM sbl: 4,6 US$/t

Selling Cost

Oxides 0,07 US$/pound

ROM sbl: 0,07 US$/pound

Metallurgical Recovery

Oxides 76%

ROM sbl: 38%

13.14 Other considerations and criteria used for the optimization process

All material outside the property is considered as waste, at zero grade.

The pit walls are not constrained by the property boundaries, as allowed by the

Chilean regulations, in case the material within the property justifies the mining.

Measured, Indicated and Inferred categories were considered as valuable.


13.15 Mineral Resource Estimate

The consolidated Mineral Resource Statement for the Marimaca deposit is presented in

Table 13-22.

Table 13-22: Consolidated Mineral Resource Statement, Marimaca, NCL Consulting (January 2017). Metal contained within the boundaries of the Marimaca properties. All figures are rounded to reflect the

relative accuracy of the estimates.

Mineral resources were tabulated within the generated pit (Figure 13-17), using a cutoff

grade of 0.20 % CuT, above the marginal value which covers processing, tailings, selling

and G&A costs. Table 13-22 shows the estimated mineral resource per category, for a

COG = 0.20 % CuT.

Table 13-23: Mineral Resource Estimate for the Marimaca Deposit based on a cutoff grade of 0.20% CuT. January 2017, Luis Oviedo, P. Geo.

Contained Metal

Classification

Quantity Grade CuT CuS

Tonnes CuT CuS Tonnes Tonnes

(000s) (%) (%) (000s) (000s)

Measured

Brochantite 2,165 0.88 0.68 41,960 32,460

Chrysocolla 3,093 0.65 0.52 44,590 35,726

Wad 30 0.33 0.22 221 143

Mixed 13 0.46 0.19 133 54

Total Measured 5,301 0.74 0.59 86,904 68,384

Indicated

Brochantite 6,776 0.74 0.55 110,538 82,605

Chrysocolla 9,045 0.60 0.46 120,242 90,730

Wad 297 0.32 0.21 2,102 1,375

Mixed 80 0.50 0.19 887 338

Total Indicated 16,198 0.65 0.49 233,769 175,048


Measured and Indicated

Brochantite 8,941 0.77 0.58 152,498 115,065

Chrysocolla 12,138 0.62 0.47 164,832 126,456

Wad 327 0.32 0.21 2,323 1,518

Mixed 93 0.49 0.19 1,020 393

Total Measured and Indicated 21,499 0.68 0.51 320,673 243,432

Inferred

Brochantite 6,873 0.61 0.45 92,279 68,338

Chrysocolla 8,576 0.53 0.41 99,635 76,947

Wad 2,596 0.32 0.21 18,541 12,132

Mixed 724 0.53 0.20 8,446 3,241

Total Inferred 18,769 0.53 0.39 218,901 160,659 Notes:

1. Mineral resources are reported within a constraining pit shell developed using Whittle™ software. Assumptions include a metal price of US$3.20/lb for Cu and process recoveries of 76% for CuT leaching and 38% for Cu ROM leaching US$ 2.80/t of mining plus US$0.01/bench downward and US$0.01/bench upward. US$10.0/tonne for leach processing, and US$0.50/tonne for G&A.

2. Assumptions include 100% mining recovery. 3. An external dilution factor was not considered during this resource estimation. Internal dilution within a 5 m x 5 m

x 5 m is considered and the use of small loading equipment is foreseen for adequate selectivity. 4. Quantities and grades in a mineral resource estimate are rounded to an appropriate number of significant figures

to reflect that they are approximations.

Figure 13-17 - Isometric view of the generated Whittle pit and the block model

13.16 Reporting Sensitivity

Table 13-23 shows the sensitivity of the Marimaca Mineral Resource Estimate to variations

in the CuT cutoff grade, highlighting in bold text the base case COG.


Table 13-24: Sensitivity of the mineral resource to changes in CuT cut-off grade (base case cutoff)

Measured

Cutoff Tonnage Grade Contained Metal

CuT % kt CuT% CuS% CuT (Mlb) CuS (Mlb)

0.7 2,326 1.10 0.86 56,409 44,277

0.5 3,606 0.92 0.72 73,171 57,607

0.3 4,889 0.78 0.62 84,520 66,568

0.2 5,301 0.74 0.59 86,904 68,384

Indicated



0.7 6,063 0.99 0.73 132,152 97,346

0.5 9,987 0.83 0.62 183,517 136,907

0.3 14,773 0.69 0.52 225,675 169,422

0.2 16,198 0.65 0.49 233,769 175,048




0.7 8,389 1.02 0.77 188,561 141,623

0.5 13,593 0.86 0.65 256,688 194,514

0.3 19,662 0.72 0.54 310,195 235,990

0.2 21,499 0.68 0.51 320,673 243,432

Inferred



0.7 3,859 0.93 0.66 78,970 56,090

0.5 8,625 0.74 0.55 140,642 104,675

0.3 15,541 0.59 0.43 200,863 148,863

0.2 18,769 0.53 0.39 218,901 160,659

Additional to the sensitivity showed above, a smaller pit was evaluated, this time using a

copper price of 2.70 US$/lb and maintaining the rest of the parameters fixed. Table 13-24

shows the sensitivity values for this new pit.

Table 13-25: Sensitivity of the mineral resource to changes in metal price assumption (US$2.70/lb Cu)

Measured



0.7 2,323 1.10 0.86 56,363 44,219

0.5 3,593 0.92 0.73 72,986 57,477

0.3 4,858 0.79 0.62 84,223 66,378

0.2 5,259 0.75 0.59 86,479 68,096


Indicated



0.7 6,006 0.99 0.73 131,026 96,469

0.5 9,872 0.83 0.62 181,451 135,587

0.3 14,500 0.70 0.52 222,495 167,264

0.2 15,848 0.66 0.49 230,147 172,713




0.7 8,330 1.02 0.77 187,389 140,688

0.5 13,465 0.86 0.65 254,437 193,064

0.3 19,358 0.72 0.55 306,717 233,642

0.2 21,108 0.68 0.52 316,625 240,809

Inferred



0.7 3,588 0.93 0.66 73,397 52,085

0.5 8,025 0.74 0.55 130,845 97,613

0.3 14,138 0.59 0.44 184,203 137,158

0.2 16,820 0.54 0.40 199,113 146,881

13.17 General Considerations and Other Factors

Apart from the conditions identified in this report, and according to the available

information, NCL is not aware of other environmental, permitting, legal title, taxation, socio-

economic or political factors that could affect materially the Mineral Resource estimate.

14 Mining Method The Marimaca deposit would be mineable by open pit methods

15 Recovery Methods

The Marimaca deposit would be exploited using heap leach methods to produce copper

cathode via SXEW (solvent extraction and electrowinning).

16 Project Infrastructure

The project is located in an area of good existing infrastructure

17 Adjacent Properties There are no adjacent properties of relevance


18 Other Relevant Data and Information

Coro has signed a letter of intent to acquire Minera Rayrock, a subsidiary of Compañía

Minera Milpo, which owns the Ivan SXEW plant, located ~20km to the south of Marimaca.

Completion of this acquisition would allow for the Marimaca project to be operated in

conjunction with Ivan

19 Conclusions and Recommendations

A team of independent consultants, under the leadership of NCL, was retained by Coro to

visit Marimaca the second week of December 2016, inspect the project, review and audit

the data and estimate the Mineral Resource. NCL examined the different sources of input

information: raw data (QA/QC), exploration, geology and mineral modelling estimation

units. The purpose of the investigation was to estimate the Mineral Resource, in

compliance with generally recognized industry best practices and report them according to

Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral

Resources and Mineral Reserves (May 2014).

NCL carried out a Resource Estimation of the Marimaca Project, resulting in the estimation

of Measured, Indicated and Inferred Resources, plus some potential mineralized rock. For

a Cutoff grade of 0.2% CuT, the Resources inside an optimized pit envelope are 21.5 Mt

@ 0.68 CuT of Measured + Indicated and 18.8 Mt @ 0.53% CuT Inferred resources.

Based on the 2016 Mineral Resources estimation, the project is expected to continue

under exploration during 2017.

Since 2016, aggressive exploration in Marimaca has defined oxides mineralization zones

amenable to open pit mining and presents very good opportunities to expand the Mineral

Resources and extend the life of the project. In this context, NCL recommends to continue

the implementation of the exploration program proposed for 2017 (US$2 million). The

regional exploration potential of the exploration properties remains good. Regional

exploration targeting should be reviewed, including the use of high resolution geophysical

data to enhance exploration targeting.

The technical information on Marimaca attests the high overall quality of the exploration

and design work completed by site personnel. NCL examined the data, the exploration,

and the geology modelling and produced the Mineral Resource estimates of Marimaca. On

the basis of this work, NCL concluded that the models, Mineral Resources and Statements

for Marimaca January 2017 are appropriately categorized and free of material errors.

Other than disclosed in this technical report, NCL is not aware of any other significant risks

and uncertainties that could reasonably be expected to affect the reliability or confidence in

the Marimaca Project.


20 References Alvarado, S., 2003, Levantamiento geológico Sector Naguayan, Informe Final. Informe Inédito, Compañía Proyecta S.A., 15 p. Bissig y Riquelme, 2010, Contrasting landscape evolution and development of supergene enrichment in the El Salvador porphyry Cu and Potrerillos-El Hueso Cu–Au districts, Northern Chile. In: Titley, S. (Ed.), Society of Economic Geologists Special Publication No. 14, Supergene Environments, Processes and Products, pp. 59–68. Blanchard, 1968; Interpretation of leached outcrops: Reno, Nevada Bur. Mines Bull. 66, 196 p Carten, R.B., 1986, Sodium-Calcium metasomatism: chemical, temporal and spatial relationships at the Yerington, Nevada, porphyry copper deposit. Econ. Geol. Vol. 81, pp. 1495-1519 Casquet, C., Herve, F., Pankhurst, R.J., Baldo, E., Calderon, M., Fanning, C.M., Rapela, C.W., y Dahlquist, J., 2014, The Mejillonia suspect terrane (Northern Chile): Late Triassic fast burial and metamorphism of sediments in a magmatic arc environment extending into the Early Jurassic, Gondwana Research, 25, p. 1271-1286. Chavez, W. X., 2000, Supergene oxidation of copper deposits: zoning and distribution of copper minerals. SEG Newsletter, N° 41 Cortes, J., Marquardt, C., Gonzales, G., Wilke, H.G., y Marinovic, N., 2007, Cartas Mejillones y Península de Mejillones, Región de Antofagasta, Serv. Nac. de Geol. y Min. Carta Geológica de Chile Nos 103 y 104, 63 p. Espinoza, S., Véliz, H., Esquivel, J., Arias, J., y Moraga, A., 1996. The Cupriferous Province of the Coastal Range, Northern Chile. In: Camus, F., Sillitoe, R.H., and Petersen, R., eds. Andean Copper Deposits: New Discoveries, Depósitos Estratoligados de Cu -(Ag) Chilenos 11 Mineralization, Styles and Metallogeny. Society of Economic Geologists, Special Publication Number 5, pp. 19-32 González, G.; Dunai, T.; Carrizo, D.; Allmendinger, R., 2006. Young displacements on the Atacama Fault System, northern Chile from field observations and cosmogenic 21Ne concentrations. Tectonics.25 Gonzales, R., 2002, Geología de la Cordillera de la Costa de Mejillones, entre los 23°00’00’’ – 23°08’11,5’’ Sur y los 70°12’01,3’’ – 70°20’46,9’’ Oeste. Región de Antofagasta. Chile. Memoria Titulo de Geólogo. Univ Cat del Norte. Inédito. 129 p. Gonzales, G., 1996, Evolución tectónica de la Cordillera de la Costa de Antofagasta (Chile). Con especial referencia a las deformaciones sinmagmáticas del Jurásico-Cretácico Inferior. Berl. Geowiss. Abh, Rethe A, 181, 1-111. Hinostroza, J., y Medina, J., 2008, Evaluación geológica del prospecto Marimaca. Memorando, Minera Rayrock, Inédito, 7 p.


Hervé, F., Faundez, V., Caldern, M., Massonne, H.-J. & Willner, A.P., 2007, Metamorphic and plutonic basement complexes, in The Geology of Chile, pp. 231–261, eds Moreno, T. & Gibbons, W., Geological Society of London. Ilabaca, P., 2004, Resultados de los sondajes en la Mina Marimaca 1 al 23 (Distrito Minero Naguayan – II Región), ENAMI, Informe Inédito, 73 p. Kuntz, J., 1928. Monografía minera de la provincia de Antofagasta, Boletin Minero, XL, N° 348, p. 190-209. Lucassen, F., Becchio, R., Wilke, H.G., Franz, G., Thirlwall, M.F., Viramonte, J., Wemmer, K., 2000. Proterozoic–Paleozoic development of the basement of the Central Andes (18–26°). A mobile belt of the South American craton. Journal of South American Earth Sciences 13, 697–715 Maksaev, V., y Zentilli, M., 2002. Chilean strata-bound Cu- (Ag) deposits: An Overview. In - Porter, T.M. (Editor), 2002 - Hydrothermal Iron Oxide Copper-Gold & Related Deposits: A Global Perspective, volume 2; PGC Publishing, Adelaide, Australia, pp. 185-205 Putnis, A., y John, T., 2010, Replacement process in the Earth’s crust. Elements, vol.6, pp.159-164. Ramírez, 2007, L., Metalogénesis, petrogénesis y tectónica del Distrito Minero de Mantos Blancos, Cordillera de la Costa, Norte de Chile, Tesis Doctorado en Ciencias, Univ. De Chile, Inédito, 178 p. Richards, J.P., y Mumin, H., 2013, Magmatic-hydrothermal process within an evolving Earth: iron oxide-copper-gold and porphyry Cu-Mo-Au deposits, Geology, v.41, n°7, p.767-770. Scheuber, E., y Andriessen, A.M., 1990, The kinematics and geodynamic significance of the Atacama Fault Zone, northern Chile. JSG,,12, 243-257. Sillitoe, R.H., 2003, Iron Oxide-copper-gold deposits: an Andean view. Mineralium Deposita, 38, 787-812 Veliz, H., 1994; Antecedentes geológicos, deformación frágil e implicancias metalogénicas del sistema de Falla Atacama, entre las Quebradas El Desesperado y La Chimba. Cordillera de la Costa, Segunda Región de Antofagasta, Chile. Memoria Titulo de Geólogo. Univ Cat del Norte. Inédito. 137 p. Venegas, R., y Vergara, M., 1985, Yacimientos de Fe-Cu-(Au) ligados a rocas intrusivas y volcánicas jurásicas de la Cordillera de la Costa a la latitud de Mejillones. II Región de Antofagasta. IV Congr. Geol. Chileno, Actas 3, 3/730-3/751 Vergara, M., 1985, Geología de los Distritos cupríferos Naguayán; Desesperado y Chacaya. II Región de Antofagasta. Tesis de Grado. Univ. Cat. Del Norte. Inédito, 80p.


ANNEX 1 Lawyers Land Tenure Letter

Santiago, February 21st, 2017

Sergio Rivera

Legal Representative

Compañía Minera Cielo Azul Limitada

Via email

Ref.: Sociedad Contractual Minera Compañía Minera

Newco Marimaca Option Agreement

Dear Sergio,

As Chilean counsel to Compañía Minera Cielo Azul Limitada (“MCAL”), we have been asked to

advise on the status and legal condition of the Option Agreement over shares (the “Option

Agreement”) of Sociedad Contractual Minera Compañía Minera Newco Marimaca (“Newco

Marimaca”), a contractual mining company owner of the mining properties that form the mining

project named “Marimaca”, located in the borough of Mejillones, province of Antofagasta, II Region,

Chile (“Project”).

For the purposes of this opinion, we have examined originals or copies, certified or identified to our satisfaction, of the documents related to the Option Agreement (as defined herein below) and of such official public records, certificates of public officials and such other documents and have considered such questions of law and made such other investigations as we have deemed relevant or necessary as a basis for the opinion expressed herein.

We have assumed the genuineness of all signatures, the legal capacity of all individuals (other than Chilean individuals), the authenticity of all documents submitted to us as originals and the conformity to authentic original documents of all documents submitted to us as certified, conformed or photostatic copies or facsimiles thereof. We have also assumed the completeness, truth and accuracy of all facts set forth in the official public records, certificates and documents supplied by public officials or otherwise conveyed to us by public officials.

We are solicitors qualified to carry on the practice of law in Chile only and we express no opinion as

to any laws or matters governed by any laws other than the laws of Chile.

In relation to the aforementioned, we can inform the following:

a. Terms detailed in the Option Agreement for up to 75% of Newco Marimaca

On November 16, 2015, MCAL and the shareholders of Newco Marimaca (the “Owners”) entered into an option agreement for the said shares. Therefore, MCAL is the beneficiary of 2 options under the terms of Section 169 of the Chilean Mining Code, with the character of irrevocable and direct, to


acquire the number of shares that are jointly equivalent to 75% of the total of the shares of Newco Marimaca, according to the following terms:

1) First Option: 51% of the total shares for a price of USD $ 185,000, whose term for exercising the

said option expires on August 6th, 2018.

2) Second Option: 24% of the total shares for a price of USD $ 1,000, whose term for exercising the

said option expires 24 months after the acquisition date of 51% of the total shares as a result of

having exercised the abovementioned First Option.

Consequently, if both options are exercised, the Owners will only jointly own the remaining 25% of the shares of Newco Marimaca, being released from the obligation of concurrence for any expense, investment or quota determined by the Shareholders Meeting, until the beginning of the commercial production and up to 15% of the share capital, being obliged to compete only with respect to the remaining 10%, subject to the fact that - if they do not concur in that percentage - they may be subject to dilution. In the event that the Owners so wish, MCAL will be able to lend the amount corresponding to the concurrence in the expenses up to that indicated 10%, with current interest rate for non-adjusting operations in force to date, credit that will be solved preferably to any distribution of any nature to be made to the partners.

In the event that MCAL exercises the First Option and acquires 51% of the total shares of Newco Marimaca, a Shareholders Agreement will be subscribed to regulate certain aspects of its relationship as partners and the management of the company. With regard to the transfer of shares, the said Agreement will establish the right of preferential option of the other partners.

b. Incorporation of Newco Marimaca and participation of the partners

By public deed dated September 23rd, 2015 Mrs. María Aura del Carmen Echanes Morgado, Mr.

Mario Carrizo Darlington, Mr. Max Salomón Carrizo Echanes and Mr. Mario Carrizo Echanes

incorporated Newco Marimaca. The said company is registered on page 2097 number 528 of the

Property Registry and its shares on page 4271 number 80 of the Shareholders Registry, both

corresponding to the year 2015 of the Mining Registrar of Antofagasta.

The social capital amounts to $ 25,000,000 Chilean pesos and comprise the exploitation mining

concessions "MARIMACA 1 AL 23", located in the borough of Mejillones, province of Antofagasta, II

Region, whose judicial award and measurement minute are registered on page 234 number 73 of

the Property Registry of the Mining Registrar of Antofagasta, corresponding to the year 1981,

and the money that is detailed below and that the constituent partners contribute to the company.

The social interest is divided into 100 shares, which are subscribed and paid as follows:

1) 25 shares, which Mario Carrizo Darlington subscribed by means of contributing to the company the

exploitation mining concessions named "MARIMACA 1 to 4", "MARIMACA 10 to 14" and

"MARIMACA 17 to 23", whose title in favor of the contributor Mario Carrizo Darlington is registered

on page 338 number 199 of the Property Registry of the Mining Registrar of Antofagasta,

corresponding to the year 1988, which the partners agree to value in the sum of $ 5,000,000

Chilean pesos;

2) 25 shares, subscribed by María Aura del Carmen Echanes Morgado through the contribution of the

exploitation mining concessions named "MARIMACA 5 to 9", whose title in favor of the contributor

María Aura Echanes Morgado is registered on page 617 number 125 of the Property Registry of the

Mining Registrar of Antofagasta, corresponding to the year 1991, which the partners agree to value

in the sum of $ 5,000,000 Chilean pesos;


3) 25 shares, subscribed by Max Salomón Carrizo Echanes through the contribution of the exploitation

mining concessions named "MARIMACA 15" and "MARIMACA 16", whose title in favor of the

contributor Max Salomón Carrizo Echanes is registered on page 1041 number 220 of the Property

Registry of the Mining Registrar of Antofagasta, corresponding to the year 2013, which the partners

agree to value in the sum of $ 5,000,000 Chilean pesos; and

4) 25 shares, subscribed by Mr. Mario Alfonso Carrizo Echanes in the incorporation act and that he

will pay by means of the contribution in money of the sum of $ 5,000,000 Chilean pesos within the

term of one year counted from the date of the incorporation public deed.

All previously identified mining concessions were contributed to Newco Marimaca according to registrations on page 2099 number 530 and page 2100 number 531, both in year 2015, and on page 3100 number 1122 of year 2016, all of the Property Registry of the Mining Registrar of Antofagasta.

c. Current status of the registration of the Option Agreement in the Mining Registrar of

Antofagasta

Both the First and the Second Option of the irrevocable Option Agreement for the Newco Marimaca shares are registered on page 69 number 1 and page 70 number 2 of the Encumbrances and Prohibitions Register of the Shareholders’ Book of the Mining Registrar of Antofagasta corresponding to year 2016.

The prohibition of encumbering and disposing of Newco Marimaca shares is registered on page 71

number 3 of the Encumbrances and Prohibitions Register of the Shareholders’ Book of the Mining

Registrar of Antofagasta corresponding to year 2016.

The prohibition of encumbering and disposing of the mining concessions contributed by María Aura

del Carmen Echanes Morgado ("MARIMACA 5 AL 9") and Max Salomón Carrizo Echanes

("MARIMACA 15" and "MARIMACA 16") are registered on page 75 number 8 of the Prohibitions

and Interdictions Registry of the Mining Registrar of Antofagasta corresponding to year 2016. The

registration of the prohibition of encumbering and disposing of the mining concessions contributed

by Mario Carrizo Darlington ("MARIMACA 1 AL 4", "MARIMACA 10 AL 14" and "MARIMACA 17 AL

23") is pending at the Mining Registrar of Antofagasta.

d. Deadlines and conditions that must be complied with to exercise the First and Second

Option for the 51% and then 75% of the shares respectively (future conditions) for owning

the shares and mining property.

The contract in question is an irrevocable option to purchase shares of a contractual mining

company, to which the mining concessions of the Project were contributed. Therefore, MCAL will

not acquire ownership of these concessions, but shares in a company that owns the said mining

concessions.

However, under the Option Agreement, the Owners of the shares of Newco Maricama encumbered

their shares and the mining concessions of the Project that were contributed to the said company

with a prohibition in favor of MCAL, forcing them not to encumber or alienate them or celebrate

contracts of any kind with respect to them, which shall remain in force for the term of the Second

Option and, as the case may be, until the granting and registration of the deed of exercise or

acceptance of the Second Option. During the validity of the options, Newco Marimaca will not be

able to assign or transfer to third parties, in any capacity, royalties or rights to extract minerals from

the mining concessions of the Project.


The terms and conditions to exercise the irrevocable options over the Newco Marimaca shares are

as follows:

1) First Option: 51% of the total of the shares for a price of USD $185,000, whose term for exercising

the said option expires on August 6th, 2018. The price will be paid in installments (USD $10,000 on

August 7th, 2014; USD $50,000 on April 6th, 2015; USD $125,000 at the time of accepting the offer

and exercising the option). As a condition for exercising this option:

a) MCAL shall carry out at its cost a Project Feasibility Study, i.e. execute a set of studies and

necessary reports to determine the technical and economic feasibility of commercially exploiting

the minerals contained in one or more of the Project's mining properties, considering a

minimum production of 1,500 tons of copper per year. This Feasibility Study should comply with the

standards and requirements imposed by National Instrument 43-101 of Canada, should contain all

the information, analysis and recommendations that are usually required by international financial

institutions for the purpose of deciding whether or not to concur, and if they decide to do so, in what

conditions, to the financing of all or part of the Project's funding requirements, and must pronounce,

positively or negatively, on the feasibility and desirability of constructing the Project.

b) The Owners may not require MCAL to comply with the preceding condition if, within 90 days from

the signing of the Option Agreement, they do not raise all liens, mortgages and prohibitions

affecting the mining properties and if they do not register them under the domain of Newco

Marimaca in the respective Mining Registrar.

2) Second Option: 24% of the total shares for a price of USD $ 1,000, whose term for exercising the

said option expires 24 months after the acquisition date of 51% of the total shares as a result of

having exercised the abovementioned First Option. As a condition for exercising this option:

a) MCAL must have obtained the necessary financing for the construction of the Project, in

accordance with the conclusions of the Feasibility Study.

If you require any further information or clarification, please let me know.

Yours sincerely,


List of Mining and Exploration Concessions

PROYECTO MARIMACACONCESIONES MINERAS MINERA CIELO AZUL LTDA

Concesiones de Explotación

Concesión Presentación Juzgado Rol Nº Inscripción Fjs Nº Conservador Situación

Miranda II 1/225 08-ago-16 1º Antofagasta V-526 22-ago-16 4712 2840 Antofagasta En trámite

Miranda IV 1/150 08-ago-16 2º Antofagasta V-580 22-ago-16 4714 2842 Antofagasta En trámite

Miranda III 1/150 08-ago-16 3º Antofagasta V-544 22-ago-16 4713 2841 Antofagasta En trámite

Miranda I 1/210 08-ago-16 4º Antofagasta V-567 22-ago-16 4711 2839 Antofagasta En trámite

Concesiones de Exploración

Concesión Presentación Juzgado Rol Nº Inscripción Fjs Nº Conservador Situación























































Detailed Mining and Surface Rights Maps



ANNEX 2 MCAL splitting protocols, recovery and sample collection protocols

RC DRILLHOLES PROTOCOLS

Field

Location of field recommendations with GPS in corrected PSAD56 coordinates

Table of recommendations in excel

Construction of platform and staking of the recommendation with lime mark in azimuth

Control shift equipment

Verification of equipment installation with compass and inclinometer

Drilling bit diameter register Report scanned drill holes

Database with serial numbers and identification of control samples (B), reference materials and duplicates

Registration in excel and serial cards

Preparation of materials: bags; Labels, cutting boxes Serial Sample Cards

Report of shift, log diameter and other operational Report scanned drill holes

Continuous sampling every 2 m Report scanned drill holes

Collection and quartet in riffles Controller observation

Control of mass in situ shows total and in 1st and 3rd quartet Record in notebook / report

Samples A and B are pocketed in plastic bags 40x60 labeled with probing, interval, series with bracket ticket

Sample of cutting, plastic box 20 divisions thick and thin, back bag of approx 1 kg

Physical backing

Sample B is stored in the site Physical backing

Sample A is sent to mechanical preparation Guide (1) preparation request, pulps in three envelopes, rejection is eliminated

Transportation of samples by truck from project to laboratory Guide (1) preparation request

Identification of the collar using PVC pipe and metal plate with the name of the well

Physical location

Measurement of deflection and orientation of structures Meter Report

Measurement of collar location with topography Definitive certificate of coordinates

Laboratory

Lab receiving and mass control Data to lab control system. Mass control report in excel + physical table and particle size control every xxx samples

Mechanical Preparation Preparation Protocols

Drying 105 ° C Preparation Protocols

Sieving and crushing 85% low # 10 Preparation Protocols

Rotary divider split Preparation Protocols

Spray 500-700 g 95% low # 150 Preparation Protocols

Obtain three envelopes of pulps 2 of 125g and 1 of 250 g Preparation Protocols

Send the envelopes to MCAL to generate lots of analysis

MCAL receiving pulps Received in physical

Standard revision according to shipping guides to preparation Revision against shipping guides (1)

Insertion of control samples, reference materials and duplicates of 2 ° on

Shipping to chemical analysis Test request guide (2) with attached detail of samples sent (according to master table)


Chemical analysis

Reception of batches of pulps

CuT: 1 g digestion with 10 ml mixture HNO3 + 4 ml HClO4 + 1 ml H2SO4 in 20 ml dilution of 50% HCl for a 100 ml gauge flask

Chemical analysis protocols

Quantification with AAS limit of detection of 0.01% for CuT Chemical analysis protocols

CuS: 1 g leaching with 50 ml H2SO4 in 250 ml gauge flask, shaking at 130 RPM for 1 hour



MCAL receiving results and Qa-Qc Laboratory reports in excel sheet by lots of approx 50 samples

Input of results to database Excel table

Review of control samples according to Qa-Qc system Excel chart charts and statistics

Under Qa-Qc re-analysis is requested (new reception circuit-review results)

Excel table

Validated results are sent to users Excel table

Official database Excel table with backs of physical certificates of laboratory

Chemical Results Master Chart

Table with masses - recoveries

Operating time chart

Tables of Qa-Qc

Excel tables with lab results - digital files

Physical backups

Samples B (MAR 17 to 54)

Cutting boxes and backing

Pulps

DDH PROTOCOLS

Field

Location of field recommendations with GPS in corrected PSAD56 coordinates

Table of recommendations in excel

Construction of platform, settling pool, and staked recommendation with lime mark on azimuth

Control shift equipment

Verification of equipment installation with compass and inclinometer

Drilling diameter registration

Obtaining the control sample according to drilling races

Sample is available in aluminum trays, runs provided by wooden blocks (white color)

Record drilling depths and recoveries Report scanned drill holes

Transfer of tray to sample and first geological revision

Race review, recoveries and regularization at intervals of 2 m marked with wooden blocks (yellow)

Registration of careers and regularized sections with their recovery measures

Geotechnical mapping and identification of PU specimens and geotechnical tests

Logging in

Photograph of trays of witnesses (in natural light) Photographic record

Weighing of each tray Weight record of trays with full control

Geological mapping Log


Database with serial numbers and identification of control samples (B), reference materials and duplicates

Registration in excel and serial cards

Preparation of materials: bags; Labels. Serial Sample Cards

Sampling by hydraulic guillotine break at intervals of 2 m and shelf in plastic bags 40x60 labeled with probing, interval, series with clasped ticket

Weighing of each sample Weight register

Tray Weighing (sample quality check) Tray weight register with half control

Photo of trays with half of witnesses (in natural light) Photo Registration

Tray storage

Transportation of samples by truck from project to laboratory

Identification of the collar using PVC pipe and metal plate with the name of the well

Physical location

Measurement of deviation Meter Report

Measurement of collar location with topography Definitive certificate of coordinates

Lab receiving and mass control Data to lab control system. Mass control report in excel + physical table and granulometric control every xxx samples

Mechanical preparation Preparation Protocols

Drying 105 ° C Preparation Protocols

Sieving and crushing at 1/4 "

Sieving and crushing 85% low # 10 Preparation Protocols

Rotary divider split Preparation Protocols

Spray 500-700 g 95% low # 150 Preparation Protocols

Obtain three envelopes of pulps 2 of 125g and 1 of 250 g Preparation Protocols

Sending the envelopes to MCAL to generate lots of analysis

Pulp reception Physical reception

Serial revision according to shipping guides to preparation Revision against shipping guides (1)

Insertion of control samples, reference materials and duplicates of 2 ° on

Shipping to chemical analysis Analysis request guide (2) with attached detail of submitted samples (according to master table)

Reception of batches of pulps

CuT: 1 g digestion with 10 ml mixture HNO3 + 4 ml HClO4 + 1 ml H2SO4 in 20 ml diluent of 50% HCl for a 100 m capacity flask l



CuS: 1 g leaching with 50 ml H2SO4 in 250 ml gauge flask, shaking at 130 RPM for 1 hour



Reception of results and Qa-Qc Laboratory reports in excel sheet by lots of approx 50 samples

Input of results to database Excel table

Review of control samples according to Qa-Qc system Excel chart graphs and statistics

Under Qa-Qc re-analysis is requested (new circuit of reception-revision of results)

Excel table

Validated results are sent to users Excel table


Official database Excel table with backs of physical certificates of laboratory

Chemical Results Master Chart

Table with recoveries of races and regularization

Table with masses of trays and samples

Operating time chart

Tables of Qa-Qc

Excel tables with lab results - digital files

Physical backups

Preparation reject at -10 #

Half Wit Trays

Pulps

OTHER PROCEDURES

PU Test Tubes

Serial identification

Photography

Geological description (Rx-ZAL-ZMIN)

Uniaxial Loading Probes

ID

Photography

Serial identification

PU samples made on full-length and full-length test specimens

Pre and post test photo lab registration

Metallurgical samples

Interval selection table

Tray Extraction

Record of weights sub-samples of 2 m

Bags, sample number, bag number

Shipping to lab


Signature Page: Technical Report for the Marimaca Copper Project, Antofagasta Province, Region III, Chile Prepared for: Coro Mining Corporation Prepared by: NCL Ingenieria y Construccion SpA NCL Project Number: 1631 Effective date: January 27

th 2017

Signature date: January 27th 2017

Authored by: Luis Oviedo, P. Geo.

CERTIFICATE OF QUALIFIED PERSON I, Luis Oviedo, P.Geo, am consultant as QP with NCLand I have an employment address at 235, General del Canto, Providencia, Santiago de Chile- This certificate applies to the technical report titled “Technical Report for the Marimaca, Copper Project, Antofagasta Province, Region II, Chile” that has an effective date of 24

th February 2017 (the “technical report).

I am a registered Professional Geologist (P.Geo.) in Chile. I am registered member of the Comisión Calificadora de Competencias en Recursos y Reservas Mineras (Chilean Mining Conmission: RM, CMC) with the number 013. I graduated with a Geologist degree from the University of Chile in 1977. Postgraduate “Evaluation and Certification of Mining Assets”. Queen’s University Canada and Universidad Católica of Valparaíso, Chile. . I have practiced my profession for 40 years since graduation. I have practiced for more than 40 years. I have been directly involved in resource estimates for all types of mines, audits, half-lives and technical reports of resources for stock exchanges and financial institutions in Canada, Chile, Peru, Ecuador and Colombia. I am a “qualified person” as that term is defined in NI 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”), JORC and other stock exchanges in the world. I visited the Marimaca Project (the “Project”) the second week of December, 2016. I am responsible for the total report.. I am independent of Coro Mining Corp. as independence is described by Section 1.5 of NI 43–101. I have been involved with the Project since November 2016 as part of preparation of the Resources Estimation study. I have read NI 43–101 and the sections of the technical report for which I am responsible have been prepared in compliance with NI 43–101 . As of the effective date of the technical report, to the best of my knowledge, information and belief, the sections of the technical report for which I am responsible contain all scientific and technical information that is required to be disclosed to make those sections of the technical report not misleading. Dated: 24

th February 2017

Signed and sealed

Luis Oviedo H. PGeo, QP


Documents

Technical Report for the Marimaca Copper Project ... · sold to Michilla, ENAMI and Rayrock. The small open pits had dimensions that do not exceed 20 by 15 m and depths of up to 20