ni 43-101 technical report on the cerro maricunga project pre-feasibility study atacama region, chile

333 Pages·2014·4.6 MB·English

NI 43-101 TECHNICAL REPORT ON
THE CERRO MARICUNGA PROJECT
PRE-FEASIBILITY STUDY
ATACAMA REGION, CHILE

Prepared For:
Atacama Pacific Gold Corporation

Submitted By:
Alquimia Conceptos S.A.
NCL Ingeniería y Construcción Spa (NCL)
Leticia Conca, Metallurgy Engineer, Registered Member of the Chilean Mining Commission
Carlos Guzmán, Mining Engineer, Registered Member of the Chilean Mining Commission, FAusIMM
Eduardo Magri, Ph.D, MSc, FSAIMM

Effective Date:
August 19, 2014

Report Date:
October 06, 2014

Revision Number 1
CERRO MARICUNGA PROJECT

CERTIFICATE OF QUALIFIED PERSON
Alonso de Córdova 5710, Office 404,
Las Condes, Santiago, Chile
Telephone: [phone]
Fax: [phone]
[email protected]

I, Leticia Conca do hereby certify that:
1. I am General Manager of Alquimia Conceptos S.A., a minerals processing consultant and
engineering company, of Santiago, Chile. My address is Alonso de Córdova 5710, Office 404, Las
Condes, Santiago, Chile.
2. This certificate applies to the Technical Report titled " NI 43-101 Technical Report on the Cerro
Maricunga Project, Atacama Region, Chile", Date effective August 19, 2014", prepared for
Atacama Pacific Gold Corporation. (the "Technical Report").
3. I graduated with a Bachelor of Science degree in Civil Mining Engineering from the Universidad
de Chile, Santiago, Chile, in 1976 and a Civil Mining Engineer degree in 1993.
4. I am a practicing Mining Engineer and a Registered Member of the Chilean Mining Commission
(N° 0058).
5. I have worked as a mining engineer for a total of 38 years. My relevant experience for the
purposes of the Technical Report is:
a. Review and report as a consultant on numerous mining operation and projects around
the world for due diligence and regulatory requirements
b. Pre-feasibility and Feasibility Study work on several copper, gold and silver projects.
6. I have read the definition of “qualified person” set out in National Instrument 43-101 – Standards
of Disclosure for Mineral Projects (“NI 43-101”) and confirm that by reason of my education,
Atacama Pacific Gold Corporation
NI 43-101 Technical Report on the Cerro Maricunga Project
III Region, Chile
CERRO MARICUNGA PROJECT

affiliation with a professional association (as defined in NI 43-101) and past relevant work
experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101.
7. I am responsible for the preparation of Items 2, 3, 4, 5, 6, 13, 17, 18, 19, 20, 22, 23 and 27, and
portions of Items 1, 21, 24, 25 and 26 of the “NI 43-101 Technical Report on the Cerro Maricunga
Project, Atacama Region, Chile", Date effective August 19, 2014. I am responsible for the
compilation of information and preparation of the overall Report. Significant contributions were
also received from NCL and Eduardo Magri.
8. I am independent of the issuer as set out in Section 1.5 of the Canadian National Instrument 43-
101 “Standards of Disclosure for Mineral Projects”.
9. I, or any affiliated entity of mine, has not earned the majority of our income during the preceding
three years from Atacama Pacific Gold Corporation, or any associated or affiliated companies.
10. On April 25, 2014, I completed a personal inspection of the Cerro Maricunga Project.
11. I have read National Instrument 43-101 Form 43-101F1 and certify that this Technical Report has
been prepared in compliance with the foregoing Instrument and Format.
12. As of the effective date of the Technical Report, to the best of my knowledge, information and
belief, the Technical Report contains all scientific and technical information that is required to be
disclosed to make the Technical Report not misleading.
Dated this October 06, 2014

Leticia Conca
_________________________________
Leticia Conca
Civil Mining Engineer
RM Chilean Mining Commission (0058)

Atacama Pacific Gold Corporation
NI 43-101 Technical Report on the Cerro Maricunga Project
III Region, Chile
CERRO MARICUNGA PROJECT

CERTIFICATE OF QUALIFIED PERSON
General del Canto 235,
Providencia, Santiago, Chile
Telephone: [phone]
Fax: [phone]
[email protected]

I, Carlos Guzmán do hereby certify that:
1. I am Principal and Project Director with the firm NCL Ingeniería y Construcción SpA., Santiago,
Chile. My address is General del Canto 235, Providencia, Santiago Chile.
2. This certificate applies to the Technical Report titled "NI 43-101 Technical Report on the Cerro
Maricunga Project, III Region, Chile", Date effective August 19, 2014, prepared for Atacama
Pacific Gold Corporation. (the "Technical Report").
3. I am a Graduate of the Universidad de Chile and hold a Mining Engineer title (1995).
4. I am a practicing Mining Engineer, a Fellow Member of the Australasian Institute of Mining and
Metallurgy (AusIMM, N° 229036); and a Registered Member of the Chilean Mining Commission
(N° 0119).
5. I have worked as a mining engineer for a total of 19 years. My relevant experience for the purpose
of the Technical Report is:
a. Review and report as a consultant on numerous exploration, mining operation and
projects around the world for due diligence and regulatory requirements
b. I have extensive experience in mining engineering. I have worked on mining engineering
assignments.
6. I have read the definition of “qualified person” set out in National Instrument 43-101 – Standards
of Disclosure for Mineral Projects (“NI 43-101”) and confirm that by reason of my education,
affiliation with a professional association (as defined in NI 43-101) and past relevant work
experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101.
Atacama Pacific Gold Corporation
NI 43-101 Technical Report on the Cerro Maricunga Project
III Region, Chile
CERRO MARICUNGA PROJECT

7. I am responsible for the preparation of Items 15 and 16 and portions of items 1, 18, 21, 24, 25 and
26 that are directly relevant to those items of the “NI 43-101 Technical Report on the Cerro
Maricunga Project, Atacama Region, Chile", Date effective August 19, 2014.
8. I am independent of the issuer as set out in Section 1.5 of the Canadian National Instrument 43-
101 “Standards of Disclosure for Mineral Projects”.
9. I have had prior involvement with the Cerro Maricunga Project. I have been responsible for part of
Technical Report (NI 43-101) of the Preliminary Economic Assessment Study for the Cerro
Maricunga Project, Region III, Chile, for Atacama Pacific Gold, effective March 15, 2013.
10. On February 10, 2012, I completed a personal inspection of The Cerro Maricunga Project.
11. I have read National Instrument 43-101 Form 43-101F1 and certify that this Technical Report has
been prepared in compliance with the foregoing Instrument and Format.
12. As of the effective date of the Technical Report, to the best of my knowledge, information and
belief, the Technical Report contains all scientific and technical information that is required to be
disclosed to make the Technical Report not misleading.
Dated this October 06, 2014

Carlos Guzmán
_________________________________
Carlos Guzmán
Mining Engineer, FAusIMM (229036)
RM Chilean Mining Commission (0119)

Atacama Pacific Gold Corporation
NI 43-101 Technical Report on the Cerro Maricunga Project
III Region, Chile
CERRO MARICUNGA PROJECT

CERTIFICATE OF QUALIFIED PERSON
Don Carlos 2939, Office 613,
Las Condes, Santiago, Chile
Telephone: [phone]
[email protected]

I, Eduardo Magri, do hereby certify that:
1. I am a consulting mining engineer to the mining and mineral exploration industry with an office at
Don Carlos 2939, Office 613, Las Condes, Santiago, Chile.
2. This certificate applies to the Technical Report titled "NI 43-101 Technical Report on the Cerro
Maricunga Project, Atacama Region, Chile", Date effective August 19, 2014, prepared for
Atacama Pacific Gold Corporation. (the "Technical Report").
3. I obtained the following university degrees:
a. Mining Engineer from the University of Chile, Santiago in 1970
b. MSc in Mining Engineering from Colorado School of Mines in 1972
c. Bachelor Honours in Operations Research form the University of South Africa in 1976
d. PhD in Mining Engineering from the University of the Witwatersrand in 1983
e. Citation in Applied Geostatistics from the University of Alberta, Canada in 2003.
4. I am a registered and active Fellow of the South African Institute of Mining and Metallurgy since
2004.
5. I have been continuously practicing my profession as a Mining Engineer and consultant since
1972.
6. I have read the definition of “qualified person” set out in National Instrument 43 101 – Standards
of Disclosure for Mineral Projects (“NI 43-101”) and confirm that by reason of my education,
affiliation with a professional association (as defined in NI 43 101) and past relevant work
experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43 101.
Atacama Pacific Gold Corporation
NI 43-101 Technical Report on the Cerro Maricunga Project
III Region, Chile
CERRO MARICUNGA PROJECT

7. I am responsible for the preparation of Items 7, 8, 9, 10, 11, 12 and 14, and portions of Items 1,
25 and 26 of the “NI 43-101 Technical Report on the Cerro Maricunga Project, Atacama Region,
Chile", Date effective August 19, 2014.
8. I am independent of the issuer as set out in Section 1.5 of the Canadian National Instrument 43-
101 “Standards of Disclosure for Mineral Projects”.
9. I, or any affiliated entity of mine, has not earned the majority of our income during the preceding
three years from Atacama Pacific Gold Corporation, or any associated or affiliated companies.
10. I have had prior involvement with the Cerro Maricunga Project. I have been responsible for part of
Technical Report (NI 43-101) of the Preliminary Economic Assessment Study for the Cerro
Maricunga Project, Region III, Chile, for Atacama Pacific Gold, effective March 15, 2013.
11. On November 27 and 28, 2012, I completed a personal inspection of the Cerro Maricunga Project.
12. I have read National Instrument 43-101 Form 43-101F1 and certify that this Technical Report has
been prepared in compliance with the foregoing Instrument and Format.
13. As at the effective date of this report and certificate to the best of my knowledge, information and
belief, the technical report contains all of the scientific and technical information that is required to
be disclosed to make the technical report not misleading. I certify that I have actively participated
in the following activities: the design and implementation of the sample preparation protocol and
QA/QC system; analyses of QA/QC and twin‐hole data; geostatistical analyses and geological
resource estimation and categorization. Not being a professional geologist, I have relied entirely
on other experts in all matters other than the ones mentioned above.
Dated this October 06, 2014

Eduardo Magri
_________________________________
Eduardo Magri
PhD Mining Engineering
South African Institute of Mining and Metallurgy

Atacama Pacific Gold Corporation
NI 43-101 Technical Report on the Cerro Maricunga Project
III Region, Chile
CERRO MARICUNGA PROJECT

TABLE OF CONTENTS
1  EXECUTIVE SUMMARY ................................................................................................................................. 1 
1.1  INTRODUCTION .................................................................................................................................................. 1 
1.2  PROPERTY AND LOCATION ................................................................................................................................ 1 
1.3  GEOLOGY AND MINERALIZATION ........................................................................................................................ 2 
1.4  EXPLORATION ................................................................................................................................................... 3 
1.5  MINERAL RESOURCE ......................................................................................................................................... 3 
1.6  MINERAL RESERVE ........................................................................................................................................... 4 
1.7  MINING STUDIES ................................................................................................................................................ 5 
1.7.1  Pit and Mining Phases Designs ....................................................................................................................... 5 
1.7.2  Mine Production Schedule ............................................................................................................................... 7 
1.7.3  Mine Equipment Requirement ......................................................................................................................... 7 
1.8  METALLURGICAL TESTING SUMMARY ................................................................................................................. 8 
1.9  MINERAL PROCESSING AND RECOVERY METHODS ............................................................................................. 9 
1.10  MINE GEOTECHNICAL ...................................................................................................................................... 11 
1.11  PLANT SITE GEOTECHNICAL ............................................................................................................................ 11 
1.12  SITE INFRASTRUCTURE .................................................................................................................................... 12 
1.12.1  Water Supply ............................................................................................................................................. 12 
1.12.2  Power Supply ............................................................................................................................................ 12 
1.12.3  Site Access Roads .................................................................................................................................... 12 
1.12.4  Mine Infrastructure .................................................................................................................................... 12 
1.13  PROJECT IMPLEMENTATION ............................................................................................................................. 12 
1.14  CAPITAL AND OPERATING COST ESTIMATES .................................................................................................... 13 
1.14.1  Capital Costs ............................................................................................................................................. 13 
1.14.2  Operating Costs ........................................................................................................................................ 14 
1.14.3  Leasing ...................................................................................................................................................... 15 
Atacama Pacific Gold Corporation
NI 43-101 Technical Report on the Cerro Maricunga Project
III Region, Chile
CERRO MARICUNGA PROJECT

1.14.4  Cash Cost .................................................................................................................................................. 15 
1.15  ECONOMIC ANALYSIS ...................................................................................................................................... 15 
1.16  CONCLUSIONS ................................................................................................................................................. 17 
1.17  RECOMMENDATIONS ........................................................................................................................................ 18 
2  INTRODUCTION ........................................................................................................................................... 19 
2.1  PURPOSE OF THE TECHNICAL REPORT ............................................................................................................. 19 
2.2  QUALIFIED PERSONS ....................................................................................................................................... 19 
2.3  EFFECTIVE DATES ........................................................................................................................................... 19 
2.4  FREQUENTLY USED ACRONYMS, ABBREVIATIONS, DEFINITIONS, AND UNITS OF MEASURE ................................ 20 
3  RELIANCE ON OTHER EXPERTS ............................................................................................................... 24 
4  PROPERTY DESCRIPTION AND LOCATION ............................................................................................. 25 
4.1  LOCATION ....................................................................................................................................................... 25 
4.2  LAND TENURE ................................................................................................................................................. 26 
4.3  ENVIRONMENTAL LIABILITIES ........................................................................................................................... 28 
4.4  PERMITS ACQUIRED ........................................................................................................................................ 29 
4.5  OWNERSHIP, ROYALTIES AND OTHER PAYMENTS ............................................................................................. 29 
5  ACCESS, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ...................... 30 
5.1  CLIMATE ......................................................................................................................................................... 30 
5.2  VEGETATION AND WILDLIFE OCCASIONALLY ..................................................................................................... 30 
5.3  PHYSIOGRAPHY ............................................................................................................................................... 30 
5.4  ACCESS .......................................................................................................................................................... 30 
5.5  LOCAL RESOURCES AND INFRASTRUCTURE ..................................................................................................... 31 
6  HISTORY ....................................................................................................................................................... 33 
6.1  CERRO MARICUNGA HISTORY .......................................................................................................................... 33 
6.2  RECENT EXPLORATION AT CERRO MARICUNGA ................................................................................................ 33 
7  GEOLOGICAL SETTING AND MINERALIZATION ...................................................................................... 35 
7.1  REGIONAL GEOLOGICAL SETTING .................................................................................................................... 35 
Atacama Pacific Gold Corporation
NI 43-101 Technical Report on the Cerro Maricunga Project
III Region, Chile
CERRO MARICUNGA PROJECT

7.2  LOCAL GEOLOGY ............................................................................................................................................ 37 
7.2.1  Structures ...................................................................................................................................................... 37 
7.2.2  Lithology ........................................................................................................................................................ 38 
7.3  ALTERATION AND MINERALIZATION .................................................................................................................. 42 
7.3.1  Alteration ........................................................................................................................................................ 42 
7.3.2  Mineralization ................................................................................................................................................. 42 
7.3.3  Gold Form and Carriers ................................................................................................................................. 45 
8  DEPOSIT TYPES .......................................................................................................................................... 47 
9  EXPLORATION ............................................................................................................................................. 48 
10  DRILLING ...................................................................................................................................................... 49 
11  SAMPLE PREPARATION, ANALYSES AND SECURITY ........................................................................... 53 
11.1  SAMPLE PREPARATION ................................................................................................................................... 53 
11.1.1  Reverse Circulation Drill Holes-RC ........................................................................................................... 53 
11.1.2  Diamond Drill Holes – DDH ....................................................................................................................... 55 
11.2  ANALYSES ...................................................................................................................................................... 57 
11.3  SECURITY ....................................................................................................................................................... 58 
11.4  CONCLUSION................................................................................................................................................... 58 
12  DATA VERIFICATION .................................................................................................................................. 59 
12.1  DATA MANAGEMENT ....................................................................................................................................... 59 
12.2  ANALYSIS OF DUPLICATE SAMPLES ................................................................................................................. 59 
12.3  ANALYSIS OF STANDARD SAMPLES ................................................................................................................. 67 
12.4  ANALYSIS OF IN-HOUSE BLANK SAMPLES ........................................................................................................ 73 
12.5  ANALYSIS OF COMMERCIAL BLANK SAMPLES .................................................................................................. 75 
12.6  TWIN HOLE ANALYSES .................................................................................................................................... 77 
12.6.1  Statistics and Graphs for CMD004-CMR209-Lynx Zone ........................................................................... 80 
12.6.2  Statistics and Graphs for CMD198-CMR089-Lynx Zone ........................................................................... 83 
12.6.3  Statistics and Graphs for CMD010-CMR018-Phoenix Zone ..................................................................... 86 
Atacama Pacific Gold Corporation
NI 43-101 Technical Report on the Cerro Maricunga Project
III Region, Chile