NI 43-101 Resources Technical Report El Toro Gold Project - Corporación Del Centro SAC - Perú

NI 43-101 Resources Technical Report
El Toro Gold Project

Corporacin del Centro S.A.C.
Per
Respectfully submitted to:

Corporacion del Centro S.A.C.
By: SGS Canada Inc.

Yann Camus, Eng.
SGS Canada Geostat
Effective Date: October 28, 2014
NI 43-101 Resources Technical Report CDC Gold Corp. El Toro Gold Project
Page II
Disclaimer:
This document is issued by SGS Canada Inc. under its General Conditions of Service accessible at
http://www.sgs.com/terms_and_conditions.htm. Attention is drawn to the limitation of liability,
indemnification and jurisdiction issues defined there in. Any holder of this document is advised that
information contained herein reflects the Companys findings at the time of its intervention only and
within the limits of the Clients instructions, if any. The Companys sole responsibility is to its Client
and this document does not exonerate parties to a transaction from exercising their rights and
obligations under the transaction documents. Any unauthorized alteration, forgery or falsification of
the content or appearance of this document is unlawful and offenders may be prosecuted to the
fullest extent of the law.
SGS Canada Inc.
Page III
DATE AND SIGNATURE PAGE

The effective date of the Report on the El Toro Gold Project of Corporacin del Centro SAC (CDC) is
February 27, 2015.
Prepared by:
(Original copy signed and sealed)
Yann Camus, Eng.
Date
SGS Canada Inc.
1
1.1
Page IV
Executive Summary
General Information
The El Toro Project is located 3,200 m above sea level in the vicinity of the city of Huamachuco, within
one of the districts of the Snchez Carrin province, and 180 km from the Department of Trujillo in
northwestern Peru. The company has offices in Trujillo and Lima. The project is located within sheet 16-G:
Cajabamba of the IGN (Instituto Geogrfico Nacional), and its central UTM coordinates are 9,134,814mN
and 829,083mE (WGS84). The project is comprised of 9 mining titles totaling 4,569.70 hectares. The land
surface on which the current operation is located consists of 253.17 hectares (Figure 4-2). CDC holds
100% of the Property titles (mining rights) of the project.
1.2
Geology and Mineralization
The gold mineralization in the region of Huamachuco occurs mostly at the intersection of the Andean
structural "train" NW to NE transfer; other conditions prevail locally, as in Tres Cruces area and Chapel.
The gold mineralization identified in the El Toro deposit is of the type of high sulfidation epithermal in
clastic sedimentary rocks, such as sandstones and quartzites of the Chimu Formation.
The genesis of this deposit is very similar to others in its class, such as La Virgen and Shahuindo. Gold is
hosted within oxidation fractures in siliciclastic rocks (sandstone, quartzite and quartz sandstones), in
cubic pyrite hosted in the dacitic prophyry and occasionally in the quartzites. El Toro was a very active
system with clear evidence of tectonic and volcanic activity represented by facies hydrothermal alteration,
superimposed breccias and fracture systems. At surface these gaps are seen as feeders through to
amass mineralizing fluids. The sandstone and quartzite breccia zones exhibit strong oxidation in contact
with the intrusive dacite.
1.3
Exploration
Drilling and field mapping started on the project in 1995 by Barrick Gold Corp. and Oromin. Since then,
companies such as Miner North and Cambior have performed various studies including surface
geochemistry and drilling.
As of 2010 the company Carlos Alberto Daz Marios (CDM) continues to perform exploration campaigns
in El Toro, including geochemical prospecting work, lab work, specialized studies and diamond drilling.
These studies were developed in partnership with private entities Geoval SA., Ak Drilling, MYAP (Dra.
Gladys Ocharn) and GEOEXINPE SAC, SAC Geomechanics, etc. The work completed to date includes:
detailed geological mapping, surface geochemical channels, RC drilling, photogrammetric restitution, etc.
SGS Canada Inc.
1.4
Page V
Metallurgical Testwork
The 2001-2005 metallurgical testing concluded that El Toro ore samples seem amenable to heap leaching
cyanidation. Recovery is little affected by grinding and 79.9% to 90 % Au is recovered with the samples
crushed between 1 inch down to 80% minus 200 mesh. It was recommended to perform column
cyanidation tests with coarser samples in the 1-3 inch range but it was never done. No metallurgical
testing was done between 2005 and 2014. In 2014 CDC began acquiring columns to be able to conduct
tests on site. It is planned to add more testing facilities and to conduct additional metallurgical testwork in
2015.
1.5
Site Visit and Data Verification
The author, Yann Camus Eng. of SGS Canada Inc. visited the project from October 28 to 30 of 2014. The
author visited the geology office, operations, and core facilities.
The author concludes that the digital database for El Toro deposit is reliable for resource estimation.
The author reviewed the continuity between different sample types including production holes, face
samples and diamond drillhole (DDH) samples; as a result the data is deemed reliable.
Eighty-seven (87) check samples have been requested; at the date of compiling this report the samples
were still being processed.
1.6
Mineral Resource Estimate
SGS completed the resource estimation with the following steps: validation of the drillhole, production
holes, trenches and face samples database, studied the various gold sample types for biases, interpreted
mineralized oxide volumes in 3D, estimated a block model inside these volumes using capped
composites, optimized an open pit to constrain the resource and classified the resource into measured,
indicated and inferred categories.
Face samples were not used in the estimation as it was determined they are biased. Soluble gold was
available for production holes only and was used to assist in the modelling of the volumes but not included
in the estimation of the block model. Only total gold was estimated. The block size of 6 m x 6 m x 6 m
corresponds to the previous resource estimation by Geoval as well as the bench height used for
production since 2012. A gold price of 1,256 US$/oz was used for the optimization of the open pit. The
costs used derive from the 2014 life of mine and the resulting marginal cut-off grade (COG) is 0.16 g/t Au.
The current operational COG is 0.3 g/t Au. For this report, the COG of 0.16 g/t Au was used for the base
case of the resources presented in Table 1-1. Resources are also available at COGs of 0.2, 0.3 and 0.5
g/t Au in Table 14-9.
SGS Canada Inc.
Page VI
Table 1-1: Base case mineral resource estimates for the El Toro project (all oxides no sulfides)
Category
Measured
Indicated
Tonnage
(t)
5,660,000
Au Grade
(g/t)
0.36
Au
Ounces
65,000
19,060,000
0.45
276,000
Measured + Indicated
24,720,000
0.43
340,000
Inferred
25,460,000
0.49
398,000
Cut-off grade is 0.16 g/t Au

Resources Effective Date: October 28, 2014
Figures may not add up due to rounding
Resources are presented as in-situ and undilluted
Resources are constrained by an optimized open pit shell using a gold price of 1256$/oz
Costs are estimated from the 2014 life of mine
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability
1.7
Mineral Reserves, Mining, Processing, Infrastructures, Environmental, Costs

and Economic Analysis
As the El Toro project has been in operation since 2012 and continued to produce during compilation of
this report, these topics were not addressed by SGS. SGS recommends that these subjects be covered in
the next NI 43-101 technical report for this project.
1.8
Recommendations
The El Toro property is promising. After more than 3 years of production with no exploration during that
time, resources should still stand for multiple years. Continued exploration work is warranted in order to
replace and possibly contribute to current resources. Continued definition drilling and technicaleconomical studies are also warranted since measured and indicated resources are currently somewhat
limited.
Recommendations Regarding the Next Resource Update
Prior to a resource update, it is recommended that CDC completes the following actions :
o
o
Drillholes to better define a minimum of the next year or two of production.

Re-log and re-assay of available core from the Cambior diamond drilling to compensate
for the lack of QA/QC, analyze for soluble gold and also to have a more homogeneous
lithology, alteration and mineralization logging in the database.
Recommendations to realize an advanced NI 43-101 technical report
Since this NI 43-101 resource technical report includes most of the parts of an advanced technical
report, costs will be significantly reduced.
SGS Canada Inc.
Page VII
The budget estimation for the completion of a complete report (including resource update) is of
$ 180,000 USD.
General Recommendations
Current geology and technical team working at the El Toro operation should continue to study and
model the geology in order to understand how to better manage the production, the exploration
and also the resource estimation.
During exploration drilling, the QA/QC procedures should continue as done by CDM in 2013.
Verification of the documents and on site implementation by a QP will ensure procedures follow
industry standards to support future estimates and reports.
Repeats of whole sample batches should be requested from the laboratory if:
o
A blank QA/QC sample returns more than 0.1 g/t Au
One QA/QC standard failure is noticed
Two QA/QC standard warnings are noticed
Option: Recommended Drilling to Extend Resources and Possibly Increase Open Pit Size and Resulting
Profitability
Areas with exploration potential that could materially affect the optimized open pit shell (see
Figure 1-1 to Figure 1-3). Areas with poor gold are sub-economical, some gold is slightly subeconomical, good gold is sufficient for modelling and estimation and NA have laboratory results
missing from the database.
In order to drill potential areas visible in Figure 1-1, the recommended length of each drill hole
should be around 140 m on a drill grid of about 50 m x 100 m which delineates inferred resources.
According to the total size of the area with potential, it is recommended to have about 40
drillholes. The total meters drilled would therefore be about 5,600 m of drilling or a budget of
$ 1,000,000 USD. Drilling some of these holes in reverse circulation (RC) could reduce the budget
along with some of the time required to drill the 40 drillholes.
In order to drill additional potential areas visible in Figure 1-3, the recommended length of each
drill hole should be around 400 m. According to the total size of the area with potential, it is
recommended to complete 8 drillholes initially. The total meters drilled would therefore be about
3,200 m of drilling or a budget of $ 575,000 USD.
SGS Canada Inc.
Figure 1-1: Plan view with oxide body in red and potential areas for exploration in grey
Figure 1-2: Plan view of optimized pit shell and next figure section location
SGS Canada Inc.
Page VIII
Page IX
Figure 1-3: Section of block model (black is not estimated), potential areas for exploration in grey
Optional: Recommendations Regarding the Exploration and Drilling of New Resources on the Property
(No budget)
Additional geophysics on the El Toro property is warranted. The principal actions could be to:
o
Extend the deposit with resources.
Find new targets for eventual drilling and resource development.
The El Toro property merits continued exploration work. Additional exploration drilling is therefore clearly
warranted on the Property.
While it was not in the current mandate, SGS noticed that process recoveries are not close to initial
testwork, a series of recommendations are listed here (No budget)
CDC should continue the construction of the metallurgical on site facility in order to do more tests.
A composite sample should be sent for gold mineralogy for metallurgical applications to better
understand how to unlock the gold from the ore. More testing may be advisable given the
complicated geological nature of the deposit but each sample requires a budget of about $ 9,000
USD.
SGS Canada Inc.
Page X
TABLE OF CONTENTS
1
Executive Summary................................................................................................ iv
1.1
General Information ....................................................................................................... iv
1.2
Geology and Mineralization ........................................................................................... iv
1.3
Exploration .................................................................................................................... iv
1.4
Metallurgical Testwork .................................................................................................... v
1.5
Site Visit and Data Verification........................................................................................ v
1.6
Mineral Resource Estimate............................................................................................. v
1.7 Mineral Reserves, Mining, Processing, Infrastructures, Environmental, Costs and

Economic Analysis .................................................................................................................. vi
1.8
Recommendations......................................................................................................... vi
Introduction.............................................................................................................. 1
2.1
General .......................................................................................................................... 1
2.2
Terms of Reference ........................................................................................................ 1
2.3
Currency, Units, Abbreviations and Definitions ............................................................... 1
2.4
NI 43-101 Disclosure ...................................................................................................... 2
Reliance on Other Experts ...................................................................................... 3
Property Description and Location ........................................................................ 4
4.1
Location.......................................................................................................................... 4
4.2
Ownership ...................................................................................................................... 6
4.3
Royalties......................................................................................................................... 6
4.4
Permits ........................................................................................................................... 6
4.5
Environmental Liabilities ................................................................................................. 6
Accessibility, Climate, Local Resources, Infrastructure and Physiography ...... 7

5.1
Physiography.................................................................................................................. 7
5.2
Accessibility .................................................................................................................... 7
5.3
Climate ........................................................................................................................... 8
5.3.1
5.3.2
Precipitation ................................................................................................................................... 8
Wind ............................................................................................................................................... 8
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5.4
Local Resources and Infrastructure ................................................................................ 8
5.5
Surface Rights .............................................................................................................. 10
History .................................................................................................................... 11
6.1
Prior Ownership of the Property and Ownership Changes ............................................ 11
6.2
Past Mineral Exploration Work...................................................................................... 11
6.2.1
Oromin Barrick (1995-1996) .................................................................................................... 11
6.2.1.1 Surface Geochemistry............................................................................................................. 11
6.2.1.2 Drilling....................................................................................................................................... 11
6.2.2
Company Minera North (1998-1999) ......................................................................................... 12
6.2.2.1 Surface Geochemistry: ............................................................................................................ 12
6.2.3
Cambior (2003-2005) .................................................................................................................. 12
6.2.3.1 Restitution aerial photography (topography) ......................................................................... 12
6.2.3.2 Surface Geochemistry............................................................................................................. 12
6.2.4
Minera Santa Marina (2006) ....................................................................................................... 12
Geological Setting and Mineralization ................................................................. 14

7.1
Regional Geology ......................................................................................................... 14
7.2
Property Geology.......................................................................................................... 15
7.2.1
Alteration ...................................................................................................................................... 16
7.2.1.1 Silicification .............................................................................................................................. 16
7.2.1.2 Phyllic (Quartz-Sericite) .......................................................................................................... 16
7.2.1.3 Argillic ....................................................................................................................................... 16
7.2.1.4 Propylitic ................................................................................................................................... 16
7.3
Structural Control.......................................................................................................... 17
7.4
Lithology and Stratigraphy ............................................................................................ 18
7.4.1
Chicama Formation - Upper Jurassic ........................................................................................ 18
7.4.2
Lower Cretaceous ....................................................................................................................... 19
7.4.2.1 Chim Formation ..................................................................................................................... 19
7.4.2.2 Santa Formation ...................................................................................................................... 20
7.4.2.3 Carhuaz Formation .................................................................................................................. 20
7.4.2.4 Farrat Formation Lower Cretaceous ................................................................................... 20
7.4.3
Inca, Chulec and Pariatambo Formation - Middle Cretaceous ................................................ 20
7.4.4
Volcanic Calipuy Formation - Upper Cretaceous to Lower Tertiary ........................................ 20
7.4.5
Intrusive Rocks ............................................................................................................................ 21
7.5
Mineralization ............................................................................................................... 21
Deposit type ........................................................................................................... 23

8.1
Deposit Summary ......................................................................................................... 23
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8.2
Epithermal Deposits ..................................................................................................... 23
8.3
Geological Characteristics ............................................................................................ 24
8.3.1
8.4
Mineralized High Sulfidation Systems ........................................................................... 26
8.4.1
8.4.2
8.4.3
8.4.4
High Sulfidation Type .................................................................................................................. 24
Fluid Characteristics.................................................................................................................... 26
Permeability ................................................................................................................................. 27
Alteration ...................................................................................................................................... 27
Mineralization ............................................................................................................................... 29
Exploration ............................................................................................................. 30
9.1.1
9.1.2
9.1.3
10
Photogrammetric restitution ........................................................................................................ 30

Surface Geochemistry................................................................................................................. 30
Drilling .......................................................................................................................................... 30
Drilling ................................................................................................................. 31
10.1
Oromin- Barrick Gold ................................................................................................. 32
10.2
Cambior..................................................................................................................... 32
10.3
Carlos Daz Marios (CDM)....................................................................................... 33
11
Sample preparation, Analyses and security..................................................... 34
11.1
Sample Preparation ................................................................................................... 34
11.2
Analyses.................................................................................................................... 34
11.2.1
11.2.2
11.3
11.3.1
11.3.2
11.3.3
11.3.4
11.4
12
Laboratory Certification ............................................................................................................... 34

Analytical Procedure ................................................................................................................... 34
Quality Control and Quality Assurance Programs ...................................................... 36

Results of Quality Control and Quality Assurance Monitoring ................................................. 37
Standards Statistics..................................................................................................................... 37
Blanks Statistics .......................................................................................................................... 39
Duplicate Sampling ..................................................................................................................... 40
Conclusion ................................................................................................................ 45
Data verification .................................................................................................. 46
12.1
Site Visit .................................................................................................................... 47
12.2
Standard Verification of the Geological Database...................................................... 48
12.3
Verification of QAQC Results .................................................................................... 48
12.4
Verification of Ore Wireframe Shells .......................................................................... 48
12.5
Controls on Gold Grade............................................................................................. 48
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12.6
Variography and Histograms ..................................................................................... 49
12.7
Analysis of Bias between Sample Types ................................................................... 49
12.8
Verification of Density Measurements ....................................................................... 49
12.9
Check Sampling by SGS ........................................................................................... 49
12.10
Conclusion ................................................................................................................ 49
13
Mineral Processing and Metallurgical Testing ................................................. 50
13.1
Historical Testwork .................................................................................................... 50
13.1.1 Metallurgical Testwork by SGS .................................................................................................. 50

13.1.1.1 Tests from 2001 ................................................................................................................... 50
13.1.1.2 Sample identification............................................................................................................ 52
13.1.1.3 Sample Preparation. ............................................................................................................ 52
13.1.1.4 Sample Characterisation. .................................................................................................... 55
13.1.1.4.1 Chemical Analysis ........................................................................................................... 55
13.1.1.5 Cyanidation Bottle Tests ..................................................................................................... 56
13.1.1.6 Cyanidation Columns Tests ................................................................................................ 58
Conclusion ............................................................................................................................. 60
14
Mineral resource estimates ............................................................................... 61
14.1
Introduction ............................................................................................................... 61
14.2
Drill Hole Database ................................................................................................... 61
14.3
Geological Interpretation ........................................................................................... 65
14.3.1
14.3.2
14.3.3
14.3.4
Definition of Sections .................................................................................................................. 65

Interpretation on Benches........................................................................................................... 66
Interpretation on Sections ........................................................................................................... 67
Solids from Sectional Interpretations ......................................................................................... 70
14.4
Capping and Compositing ......................................................................................... 73
14.5
Spatial Analysis ......................................................................................................... 74
14.6
Resource Block Modeling .......................................................................................... 76
14.7
Grade Interpolation Methodology............................................................................... 77
14.8
Density ...................................................................................................................... 78
14.9
Mineral Resource Classification ................................................................................ 79
14.10
Whittle Pit Optimization to Constrain Resources ........................................................ 81
14.11
Base Case Mineral Resource Estimates.................................................................... 83
14.12
Sensitivity Analysis .................................................................................................... 84

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Page XIV
15
Mineral Reserve Estimates ................................................................................ 86
16
Mining Methods .................................................................................................. 87
17
Recovery Methods .............................................................................................. 88
18
Project Infrastructure ......................................................................................... 89
19
Market Studies and Contracts ........................................................................... 90
20
Environmental Studies, Permitting and Social or Community Impact ........... 91
21
Capital and Operating Costs.............................................................................. 92
22
Economic Analysis ............................................................................................. 93
23
Adjacent Properties ............................................................................................ 94
23.1
Epithermal Gold Deposits in Sedimentary Rocks ....................................................... 94
23.1.1
La Virgen Deposit ........................................................................................................................ 94
23.1.2
23.1.3
La Arena Deposit ......................................................................................................................... 95

Lagunas Norte- Barrick Gold Corp............................................................................................. 97
24
Other Relevant Data and Information ............................................................... 98
25
Interpretation and Conclusions ......................................................................... 99
26
Recommendations.............................................................................................100
27
References .........................................................................................................104
27.1
28
Web and Databases References ............................................................................. 104
Certificates of Qualified Persons .....................................................................105
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Page XV
LIST OF FIGURES
Figure 1-1: Plan view with oxide body in red and potential areas for exploration in grey ____________ viii
Figure 1-2: Plan view of optimized pit shell and next figure section location _____________________ viii
Figure 1-3: Section of block model (black is not estimated), potential areas for exploration in grey _____ ix
Figure 4-1: El Toro project location map _________________________________________________ 4
Figure 4-2: Claims area of El Toro Project _______________________________________________ 5
Figure 5-1: Landscape at the mine _____________________________________________________ 7
Figure 5-2: Local infrastructures Huamachuco, as viewed from the mine site ____________________ 9
Figure 5-3: Offices at the El Toro Project mine ____________________________________________ 9
Figure 7-1: Regional geology ________________________________________________________ 14
Figure 7-2: Contact between the sandstones from the Chim Formation and the dacitic porphyry_____ 16
Figure 7-3: El Toro hydrothermal alteration zones ________________________________________ 17
Figure 7-4: Regional structural interpretation ____________________________________________ 18
Figure 7-5: Stratigraphic column (after V. Quirita, 2006) ____________________________________ 19
Figure 7-6: Mineralization models (from CDC Gold Corp.) __________________________________
Figure 8-1: High sulfidation epithermal deposits model (modified from Hedenquist and Lowenstern) __
Figure 8-2: Conceptual model for styles of magmatic arc epithermal Au-Ag and porphyry Au-Cu (image
sourced from Corbett and Leach, 1998) ________________________________________________
Figure 8-3: Epithermal deposits global occurrences (image sourced from Corbett and Leach, 1998) __
Figure 8-4: Vuggy silica alteration of porphyritic fragments breccia matrix (Corbett, 2002) _________
Figure 8-5: Vuggy silica alteration of lapilli tuff (Corbett, 2002) _______________________________
Figure 8-6: Vuggy silica alteration of porphyry intrusion (Corbett, 2002) ________________________
Figure 11-1: Geoval Standard 201 OREAS samples ______________________________________
Figure 11-2: Geoval Standard 901 OREAS samples ______________________________________
Figure 11-3: CDM Standard 201 OREAS samples ________________________________________
Figure 11-4: CDM Standard 901 OREAS samples ________________________________________
Figure 11-5: Blanks Au (ppm) samples Geoval _________________________________________
Figure 11-6: Blanks Au (ppm) - CDM __________________________________________________
Figure 11-7: Geoval duplicates Au (ppm) _______________________________________________
Figure 11-8: Au original vs Au duplicates - Geoval sampling ________________________________
Figure 11-9: CDM duplicates Au (ppm)_________________________________________________
Figure 11-10: Au original vs Au duplicates CDM sampling _________________________________
22
23
24
26
28
28
28
37
38
38
39
40
40
41
41
42
42
Figure 11-11: Au blasthole original vs duplicates _________________________________________ 43

Figure 11-12: Au face samples original vs duplicates ______________________________________ 44
Figure 12-1: Panorama of the office and workings ________________________________________ 47
Figure 12-2: Core storage facility displaying proper storage _________________________________
Figure 13-1: Sample preparation _____________________________________________________
Figure 13-2: Sample preparation of composite sand-5 _____________________________________
Figure 13-3: Results of the bottle test for the intrusive sample _______________________________
Figure 13-4: Results of the bottle test for the Sand-5 sample ________________________________
Figure 14-1: Plan view of drillholes (DDH and RC) at the El Toro Project _______________________
Figure 14-2: Scatterplot of paired 6 m composites in DDHs vs BHs ___________________________
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53
54
57
58
63
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Page XVI
Figure 14-3: Au g/t histogram of 4,521 original assays from the mineralized zones (DDH, RC, TR)____ 65
Figure 14-4: Location of sections used for the ore-shell model _______________________________ 66
Figure 14-5: Modeling of the sulfides on bench 3,499 mZ using solubility from production data_______
Figure 14-6: Modeling of the sulfides on bench 3505 mZ using solubility from production data _______
Figure 14-7: Interpretation of sulfides on Section 8.0 ______________________________________
Figure 14-8: Interpretation of oxides and sulfides on Section 8.0 _____________________________
Figure 14-9: Interpretation of sulfides on Section 11.0 _____________________________________
Figure 14-10: Interpretation of oxides and sulfides on Section 11.0 ___________________________
Figure 14-11: Interpretation of sulfides on Section 14.0 ____________________________________
Figure 14-12: Interpretation of oxides and sulfides on Section 14.0 ___________________________
Figure 14-13: Oblique view of the sectional interpretations for the oxides _______________________
Figure 14-14: Oblique view of the resulting solid wireframe for the oxides_______________________
Figure 14-15: Oblique view of the sectional interpretations for the sulfides ______________________
Figure 14-16: Oblique view of the resulting solid wireframe for the sulfides ______________________
Figure 14-17: Oblique view of the solid wireframes for both the oxides and the sulfides ____________
Figure 14-18: Longitudinal view looking northeast displaying all composites used for the estimation ___
Figure 14-19: The best variogram produced using production composites alone__________________
Figure 14-20: Best continuity shown on bench 3,499 mZ with production drillholes ________________
Figure 14-21: Best continuity shown on Section 11.0 with production and exploration drillholes ______
67
67
68
68
69
69
70
70
71
71
72
72
73
74
75
76
76
Figure 14-22: Histogram of estimated capped gold in block model (one max grade at 2.93 g/t) _______ 78
Figure 14-23: Plan view of the optimized pit shell _________________________________________ 82
Figure 14-24: View in 3-D of optimized pit shell __________________________________________ 82
Figure 14-25: Optimized open pit section showing the block classification and topography __________ 83
Figure 14-26: Comparison of mineral resource estimates at varying cut-off grades ________________ 85
Figure 23-1: Map of adjacent gold deposits _____________________________________________ 94
Figure 26-1: Plan view with oxide body in red and potential areas for exploration in grey __________ 101
Figure 26-2: Plan view of optimized pit shell and next figure section location ___________________ 102
Figure 26-3: Section of block model (black is not estimated), potential areas for exploration in grey __ 102
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LIST OF TABLES
Table 1-1: Base case mineral resource estimates for the El Toro project (all oxides no sulfides) _____ vi
Table 2-1: List of abbreviations _______________________________________________________ 2
Table 4-1: Summary of El Toro project mining claims _______________________________________ 5
Table 6-1: Surface geochemistry work _________________________________________________ 13
Table 6-2: Exploration work on the Property before CDC Gold Crop. __________________________ 13
Table 8-1: Genetic types of epithermal gold deposits ______________________________________ 25
Table 10-1: Drilling summary ________________________________________________________ 31
Table 10-2: Drilling data verification ___________________________________________________ 32
Table 11-1: Geochemistry analysis and detection limits (ICP12B)_____________________________ 35
Table 11-2: Certified values, SDs, 95% confidence and tolerance limits for OREAS 201____________ 36
Table 11-3: Certified values, SDs, 95% confidence and tolerance limits for OREAS 901____________ 37
Table 11-4: Au blasthole statistics ____________________________________________________ 43
Table 11-5: Au face samples statistics _________________________________________________ 44
Table 13-1: Amenability of gold recovery by cyanidation (2011 tests) __________________________
Table 13-2: Bottle test results intrusive (2001) ___________________________________________
Table 13-3: Bottle test results sandstone (2001) __________________________________________
Table 13-4: Results of column cyanidation tests __________________________________________
Table 13-5: Identification of samples __________________________________________________
Table 13-6: Chemical assay of head samples ___________________________________________
Table 13-7: ICP scan of samples _____________________________________________________
Table 13-8: Summary of the cyanidation test results for the intrusive sample ____________________
Table 13-9: Summary of the cyanidation test results for the Sand-5 composite ___________________
Table 13-10: Summary of cyanidation test results for sample GR-28 __________________________
Table 14-1: Exploration and production holes summary ____________________________________
Table 14-2: QAQC samples completed by CDC gold ______________________________________
Table 14-3: Composite statistics______________________________________________________
Table 14-4: Variogram parameters used in the estimation __________________________________
Table 14-5: Search parameters for each of the 3 estimation passes ___________________________
3
Table 14-6: Density statistics (t/m ) ___________________________________________________
Table 14-7: Open pit optimization parameters ___________________________________________
Table 14-8: Base case mineral resource estimates for the El Toro Project (all oxides no sulfides) ___
50
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51
51
52
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56
57
58
59
62
62
74
75
77
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81
83
Table 14-9: Mineral resource estimates at varying cut-off grades (all oxides no sulfides) __________ 84
Table 23-1: Regional stratigraphic column of La Arena and surrounding areas ___________________ 96
Table 23-2: Barricks Reserve/Resources-2013 __________________________________________ 97
Table 23-3: Epithermal gold deposits in the La Libertad Region gold zone (from SNL web site) _____ 97
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2.1
Page 1
Introduction
General
SGS Canada Inc. (SGS) was contracted on August 18, 2014, by CDC Gold (CDC) to conduct a NI 43101 technical resource report on the El Toro project located in the town of Huamachuco in Northwestern
Peru.
This report presents a resource on the El Toro gold project. It has been prepared under the requirements
and following the guidelines of the Canadian National Instrument 43-101 (NI 43-101) for use by CDC
Gold.
2.2
Terms of Reference
SGS Canada Inc (SGS) has been retained by Corporacin del Centro S.A.C (CDC Gold) to prepare a
technical report and resource estimate of the El Toro Gold Project in accordance with the Canadian
National Instrument 43-101 (NI 43-101). The information disclosed in this report is derived from previous
technical reports, information provided by CDC, the internet, and three site visits to the project.
2.3
Currency, Units, Abbreviations and Definitions
All measurements in this report are presented in the metric system. Monetary units are in United States
dollars (USD$) unless otherwise specified. The metric coordinate system is Universal Trans Mercator
WGS84.
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Table 2-1: List of abbreviations
2.4
Abbreviation
Units
Abbreviation
Units
Metric tonnes
kg
Kilograms
Mt
tpd
m
cm
mm
km
L
mL
ppm
QA
C
CoG
Cu
Pb
Zn
As
Hg
Million tonnes
Tonnes per day
Metres
Centimetres
Millimetre
Kilometre
Litre
Millilitre
Parts per million
Quality Analysis
Degrees
Degrees Celsius
Cut-Off Grade
Copper
Lead
Zinc
Arsenic
Mercury
g
NSR
S
N
E
W
ha
m
CAD$
QC
%
MMI
Fe
Au or AuT
AuS
AgT
AgS
CDC
Grams
Net Smelter Return
South
North
East
West
Hectare
Cubic metres
Canadian Dollars
Quality Control
Percent
Mobile Metal Ion
Iron
Gold (total)
Soluble gold
Total silver
Soluble silver
Corporacin del Centro S.A.C.
Mo
Molybdenum
Ma
Millions Years
NI 43-101 Disclosure
The technical information in this report has been prepared in accordance with Canadian regulatory
requirements by independent Qualified Persons, or under the supervision of, as set out in the National
Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101).
The Mineral Resource estimates set out in this report were classified according to the CIM Definition
Standards - For Mineral Resources and Mineral Reserves (as adopted by CIM Council in November
2010). Readers are advised that Mineral Resources do not demonstrate economic viability. Mineral
Resource estimates do not account for mineability, selectivity, mining loss and dilution. These Mineral
Resource estimates include Inferred Mineral Resources that are considered too geologically speculative to
contribute to economic studies and cannot be transferred to reserves. There is no certainty that Inferred
Mineral Resources will be converted to Indicated and Measured categories with further drilling, or into
Mineral Reserves, once economic considerations are applied. Technical information in this report was
reviewed and adopted by all Qualified Persons.
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Reliance on Other Experts
This report was prepared in accordance to the NI 43-101, for El Toro Gold Project of Corporacin del
Centro S.A.C. (CDC Gold).
Some information has been sourced from the previous Technical Report by GEOVAL (Terrones &
Castaeda, 2012).
SGS Qualified Persons were provided information, have drawn conclusions and made estimates to the
best of their knowledge, based upon reviewing;
Information provided by CDC Gold (CDC) and their technical staff;
Public information available at the time of preparation;
Personal inspections of the Project;
External data;
Assumptions, conditions and qualifications established in this report.
Contributions by Oscar Fras (CDC), Alberto Velzquez (CDC), Walter Acero (CDC), Carlos Salinas
(CDC), Jess Dextre (CDC), Francisco Youpanqui (CDC), Enrique Lopez (CDC), Erikzon Catacora
(CDC), Jos A. Terrones (Geoval) and Rodrigo Carneiro (SGS) and their support in preparing the
resource estimation and technical report are duly noted and appreciated.
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4
4.1
Page 4
Property Description and Location

Location
El Toro Project is located 3,200 m above sea level in the vicinity of the city of Huamachuco, within a
district of the Snchez Carrin province, at La Libertad Department and 180 km from the town of Trujillo in
northwestern Peru. The company has offices in Trujillo and Lima (Figure 4-1).
El Toro Mine
Office
Figure 4-1: El Toro project location map
The project is located within sheet 16-G (Cajabamba) of the IGN (Instituto Geogrfico Nacional) and its
central UTM coordinates are 9,134,814mN and 829,083mE (WGS84).
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The project is comprised of 9 mining titles totaling 4,569.70 hectares (Table 4-1).
Table 4-1: Summary of El Toro project mining claims
Code
P63000311
15009015X01
15009021X01
15009020X01
15009017X01
15009019X01
10138907
15009018X01
15009016X01
Name
ISABELITA
ROSA AMPARO
A.C.1
ROSA AMPARO
A.C.7
ROSA AMPARO
A.C.6
ROSA AMPARO
A.C.3
ROSA AMPARO
A.C.5
RODRIGO PRIMERO
ROSA AMPARO
A.C.4
ROSA AMPARO
A.C.2
Zone Map
Reference Holder
Department
Province
District
Area (Ha)
17
16-G CARLOS ALBERTO DIAS MARIOS LA LIBERTAD SANCHEZ CARRION
HUAMCHUCO
63.50
17
16-G CORPORACION DEL CENTRO S.A.C LA LIBERTAD SANCHEZ CARRION
HUAMCHUCO
840.00
17
16-G CORPORACION DEL CENTRO S.A.C LA LIBERTAD SANCHEZ CARRION CURGOS/HUAMACHUCO
660.00
17
HUAMCHUCO
666.18
17
HUAMCHUCO
520.00
17
HUAMCHUCO
360.00
17
HUAMCHUCO
17
16-G CORPORACION DEL CENTRO S.A.C LA LIBERTAD SANCHEZ CARRION CURGOS/HUAMACHUCO
620.02
17
740.00
TOTAL SURFACE (Ha)
HUAMCHUCO
100.00
4,569.70
The land surface on which the current operation is located consists of 253.17 hectares. CDC is presently
negotiating the purchase of additional land and while this addition may not be directly related to the
operation, it may hold future strategic importance (Figure 4-2).
Figure 4-2: Claims area of El Toro Project
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4.2
Page 6
Ownership
CDC holds 100% of the property titles (mining rights) of the project.
4.3
Royalties
Since 2019, CDC Gold and Minera San Antonio S.R.LTDA have a contractual mineral royalty for the
production of processed ore mined and sold derived from the mining rights. The royalties are equivalent to
1% of the value of net sales of concentrates or metals obtained from the processing of minerals in the
mining rights.
4.4
Permits
CDM holds 100% of the mining permits. CDC is currently in the process of acquiring all permits relevant to
its mining operations presently owned by CDM. SGS has neither validated ownership of mining permits
nor has sufficient information to qualify this statement at this time; additional documents must be acquired
and reviewed in order to fully ascertain the validity of this affirmation.
4.5
Environmental Liabilities
The former owner declares that informal miners illegally invaded part of the mining rights and prevented
access to the holder for a period of approximately 6 years. Environmental authorities of the sector were
addressed regarding this issue. As a result, the former owner was unable to perform environmental
rehabilitation and proper closure of the exploration work conducted years prior.
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5.1
Page 7
Accessibility, Climate, Local Resources, Infrastructure and

Physiography
Physiography
The majority of the project area is relatively rugged with elevations ranging from sea-level to between
3,100 to 3,450 m. The rugged terrain can make access to certain parts of the project area problematic,
particularly in the wet season.
The study area is categorised by eroded moderate rocky hills and slopes and steep sided streams. The
landscape has also been reshaped from ongoing agricultural activities from centuries of human
occupation.
The study area is located in the Andes and vegetation is mainly grass. The near-absence of soils and light
organic matter coating and Andean floristic species spreads throughout the area.
Figure 5-1: Landscape at the mine
5.2
Accessibility
The nearest international airport to the project area is Lima. Trujillo can be reached by plane or by roads.
From Trujillo, the town of Huamachuco is accessed by paved roads (10A, & 3N); the El Toro project
facilities and infrastructure can be accessed from Huamachuco heading NE via an unpaved road easily
traversed using a 4x4.
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5.3
Page 8
Climate
The climate in Peru typically varies from tropical in the east to dry desert in the west, and temperate to
frigid in the Andes. The terrain in Peru consists of the western coastal plain (costa), high and rugged
Andes in the center (sierra) and lowland jungle of the Amazon Basin (selva) in the east. Lima, the capital
of Peru, is located 480 km south of Huamachuco.
The climate of Huamachuco is temperate, moderately rainy, and temperature range is moderate. This is
an area identified as the floor of the Andean slope with altitudes varying from the 3,100 to 3,450 m.
Daytime temperatures in Huamachuco will generally reach highs of around 27C mostly between
February to March. The average minimum temperature drops down to around 15C at night. The coldest
temperatures occur between July and November. The Heat Index indicates no major discomfort given
average maximum temperatures and humidity levels.
5.3.1
Precipitation
The average rainfall in Huamachuco throughout the year is 3.7 days and can reach up to 15 from
February to March. A minimum of 0 days are generally observed from April to October. Small increases
are present in May and from July to august can reach 6 days. The rainy season from November to March
is defined as "winter" in Huamachuco, while from April to October is considered "summer" as
characterized by a lack of rain, very sunny days and very cold nights. The driest month is July. There is
only 11 mm of precipitation in July and most precipitation occurs in March. The cumulative annual average
is 905.50mm.
5.3.2
Wind
The yearly average daily wind speed is around 12 km/h (7 knots). In recent years the maximum sustained
wind speed has reached 93 km/h (50 knots).
5.4
Local Resources and Infrastructure
A regional airport in Trujillo and a local airport in Huamachuco are operational. Regional (paved) and local
(unpaved) roads access the project easily. The national energy network, local labour, cellular and internet
coverage are present at the site.
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Figure 5-2: Local infrastructures Huamachuco, as viewed from the mine site
The population of the surrounding villages depends mainly on mining and agriculture. Traditional farming
is the main activity in the region. The mining activity is considered artisanal. Local workers have minimal
technical knowledge and lack ecological knowledge. Mineral exploitation by the local miners occurs
through conventional mining methods, without any mine planning or design, and has no environmental
impact studies and no mitigation plans. The Libertad and Cajamarca Departments are currently the main
producers of gold in the country. Specialized labour such as geology and mining would be available
mostly from greater populated and educated centers such as Lima.
The El Toro Project includes an operating mine with fully functional mining infrastructure. Additional
information of the mining methods, processing and infrastructure are briefly described in sections 16, 17
and 18 of this report.
Figure 5-3: Offices at the El Toro Project mine
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Page 10
Surface Rights
CDC holds sufficient surface rights for mining operations. SGS has neither validated ownership of surface
rights nor has sufficient information to qualify the previous statement at this time; additional documents
must be acquired and reviewed in order to fully ascertain the validity of this affirmation. It is strongly
recommended that a qualified person investigate this further, ideally an individual with sufficient
knowledge of surface rights in Peru and in the exact vicinity of the Project.
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History
6.1
Prior Ownership of the Property and Ownership Changes
El Toro is a historic gold deposit; residents of Trujillo formed the Minera San Antonio SRL. In 1995 they
signed an option agreement with companies Oromin and Barrick Gold Corporation, who explored the
deposit in 1995 and 1996.
Subsequently they agreed to transfer the property to North Compaa Minera SA., which performed
exploration programs during 1998 and 1999. Despite the maturity of the project the company decided to
stop the work program.
In October 2003 the project was optioned by Cambior, who executed exploration programs on the
property for 2 years. In October 2005 Cambior informed Minera San Antonio SRL. of the suspension of
their obligations.
In mid 2006 Empresa Minera San Antonio S.R.L. entered in negotiations with Minera Santa Marina to
advance project development of the El Toro Project. As a result, Minera Santa Marina SA purchased
concessions from Minera San Antonio in June 2006. Minimal detail is available for this owner.
Currently, Corporacin del Centro (CDC) owns all concessions of the El Toro deposit.
6.2
6.2.1
Past Mineral Exploration Work

Oromin Barrick (1995-1996)
Between 1995 and 1996 the exploration companies Oromin and Barrick Gold Corporation signed an
option agreement with the owners of the project to carry out exploration on El Toro. Work on the property
included geological mapping, surface geochemistry and reverse circulation (RC) drilling.
6.2.1.1 Surface Geochemistry
A sampling program was completed on rock outcrops, soils and structures with filling (veins). A total of
994 samples were taken and the work grid almost entirely covered the El Toro project.
6.2.1.2 Drilling
The drill program was carried out between December and June of 1995 and 1996 and 50 drillholes
totaling 3,994.50 m were drilled. The technique used for drilling was reverse circulation (RC) with
FOREMOST W750 drills, having a capacity of 250.00 m/day. A total of 3,995 samples were taken
systematically from each 1.50 m drilled.
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6.2.2
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Company Minera North (1998-1999)
North executed exploration during 1998 and 1999 with the goal of developing an operation. They
completed geological mapping, surface geochemistry, and a geophysical survey.
6.2.2.1
Surface Geochemistry:
The surface geochemistry program consisted of sampling outcrops. This campaign was developed within
a program of regional geochemical reconnaissance. A total of 233 samples were collected on the
property.
In August 1999 North conducted a geophysical helimagnetic survey. The purpose of this study was to
attempt to identify a porphyritic intrusive body that could contain Cu-Au mineralization.
6.2.3
Cambior (2003-2005)
In 2003, Cambior acquired the El Toro Project. The following two years consisted of advanced exploration
work including: Photographic Restoration (2,000 ha), geological mapping (500 ha), surface geochemistry
and drilling. In October 2005, Cambior informed Minera San Antonio SRL. of the suspension of its
obligations.
6.2.3.1 Restitution aerial photography (topography)
In May 2004, Eagly MAPPING completed an aerial photograph of 2,000 ha (5 x 2 km) from the central
area of the El Toro Project. Georeference points and a baseline were also surveyed in order to perform
the mapping, sampling and drilling.
6.2.3.2 Surface Geochemistry
Surface geochemistry work consisted of geochemical stream sediment sampling, soil, and rock outcrop
trenches totalling 1,834 samples.
6.2.4
Minera Santa Marina (2006)
At the time this report was written, no information was available regarding this owner.
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Table 6-1: Surface geochemistry work
Sample Type
Number of Samples
Rock
1004
Soils
159
Sediments
53
Trench
618
Total of Samples
1834
Table 6-2: Exploration work on the Property before CDC Gold Crop.
Type of geological work
Unit of measure
Planned
Actual
Geological prospecting at 1:10,000 scale

Radiometric surveys
Line km
18.0
18.0
Excavation of pits
Line m
55.0
55.0
Sample
750.0
748.0
Geochemical sampling of outcrops
Sample
0.0
55.0
Geochemical channel-sampling of pits
Sample
55.0
55.0
Geochemical channel-sampling of outcrops
Sample
0.0
15.0
Line cutting
Line km
17.0
13.4
Pegging profiles and baselines at 25 m intervals
Line km
20.4
21.0
Research traverse
Line km
25.0
25.0
Geochemical sampling of outcrops
Sample
0.0
22.0
Sample
100.0
122.0
Geochemical
dispersion
sampling
around
aureoles
of
secondary
Research at 1:50,000 scale
Litho-geochemical
dispersion
investigation
following
the
traces
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7
7.1
Page 14
Geological Setting and Mineralization

Regional Geology
The regional geology is dominated by a thick sequence of Mesozoic marine clastic and carbonate
sedimentary rocks, which are bound to the west by the Mesozoic to Early Tertiary Coastal Batholith and to
the east by the Paleozoic metamorphic fringe. This zone covers part of the eastern sector of the Tertiary
volcanics and also a part of the western sector of the Mesozoic sedimentary fringe. Sedimentary rocks are
represented by pelitic sequences from the Upper Jurassic age, considered as the base of the stratigraphic
column in the region (Chicama Formation), followed by Cretaceous sequences of predominantly clastic
silty sand at the bottom (Chim formation) and muddy -calcareous rocks at the top (Chim, Santa,
Carhuaz and Farrat formations) (Figure 7-1).
Figure 7-1: Regional geology
The sedimentary units are covered by Tertiary volcanic rocks of predominantly andesitic lavas alternating
with dacitic pyroclastic horizons (Calipuy Group). K-Ar radiometric dating performed by Cambior, indicates
that the superior level of these volcanics present in the Quesquenda area have ages of 18 million years
(Ma) for andesitic lavas and 16 Ma for the dome andesitic volcanic porphyry Sulcahuamga in the area of
Alto Chicama.
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The intensely folded and faulted sedimentary series are cut by hypabyssal intrusions of Tertiary age,
apparently related to the occurrence of dome landforms, and preferably emplaced within the NW SE
structural corridor. These intrusive rocks are usually emerging as small stocks isolated in or on the
periphery of the dome landforms. At depth, these stocks seem to merge and form a more intrusive body,
as in the " Huamachucos Dome " and "Algamarcas Dome". Peripheral intrusions surround select domes
in laccolithic forms, such as La Arena and Toro. The composition of intrusive domes varies from porphyrydiorite to andesitic-dacitic porphyry to quartzite. Radiometric dating done by Cambior indicates several
generations of intrusives, whose range of ages is between 25 to 18 Ma. In the highlands and on the
slopes to the east and west of the "Cordillera del Huaylillas" (Dome of Huamachuco), thick accumulations
of glacial material (100 m) are observed.
7.2
Property Geology
The El Toro deposit consists of disseminated gold (Au) located in the sandstones of the Chim Formation.
The orebody is located within the mineralized fringe of northern Peru consisting of gold deposits hosted in
Cretaceous sedimentary rocks and associated with deep sub-volcanic intrusions. The metallotect is the
Chim Formation, which consists of sandstone, quartzite, quartz sandstone, coal and clay siltstones with
lenticular facies that pinch out laterally (Rivera 1980).
The El Toro deposit lies within a large mineralized corridor and the genesis of this deposit is very similar to
others of its class, such as La Virgen and Shahuindo. Gold is hosted in the oxidation fractures within
siliciclastic rocks (sandstone, quartzite and quartz sandstones) and cubic pyrite hosted in the dacitic
prophyry and occasionally in the quartzite. El Toro was a very active system with clear evidence of
tectonic and volcanic activity represented by hydrothermal alteration facies, superimposed breccias, and
fracture systems. These facies provided conduits for mineralized fluids. The sandstone and quartzite
breccia zones exhibit strong oxidation (jarosite, goethite and hematite) in contact with the intrusive dacite.
The intrusion, a dacitic porphyry, is located in the central part of the recumbent anticline orientated to the
west. The fracture-hosted economic gold mineralization displays strong oxidation in the stockwork,
suggesting decent grades.
In the northwest side of the hill there is a stock from a dacitic porphyry which cuts the sedimentary
sequence trending northeast. This sedimentary sequence presents a strong argillitic alteration with a
system of stockwork veins. Strong argillic alteration is also observed at the contact between the dacitic
intrusive and the sandstones, sometimes reaching up to 20 m wide The breccia matrix constitutes either
intrusive or sandstone and hosts gold veinlets. Intense fracturing areas are observed that give a "sugary"
texture. These areas do not have economic gold (Au), but localized moderate sericite alteration can be
considered as an economic gold anomaly. Areas of compaction within the sandstone offer zones of
enrichment between bedding planes, allowing for mineralized lenses to form. The minerals consist of
goethite, jarosite and hematite, and range in thickness from 0.5 to 0.25 m. The greatest potential resource
lies within the sandstones. The local geology and stratigraphy is shown in Figure 7-5).
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Figure 7-2: Contact between the sandstones from the Chim Formation and the dacitic porphyry
7.2.1
Alteration
The sandstones display silicification, typical of hydrothermal breccias, with localized phyllic alteration
(sericite) and intense fracturing. The alteration of the porphyry is moderate to strong along the peripheral,
and gradually decreases to propylitic and / or chloritic towards the center (Figure 7-3).
7.2.1.1 Silicification
Silicification is the dominant alteration observed in the deposit. It can be difficult to clearly identify the
silicification in siliciclastic rocks but it usually generates a massif texture. This alteration is restricted in
proximity to the mineralization ducts.
7.2.1.2 Phyllic (Quartz-Sericite)
This alteration is present in the sandstones along the border of the silicification zones. Interstitial sericite is
generally present in low to moderate quantities but is occasionally pervasive in fractured areas of the
sandstone.
7.2.1.3 Argillic
This hydrothermal alteration is dominant in the dacitic porphyry. It obliterates primary textures when the
alteration is strong. In cases where the alteration is not very invasive, original porphyritic textures are
observed with a white-beige color indicative of the argillic presence.
7.2.1.4 Propylitic
This hydrothermal alteration is generated as distal halo argillic alteration, identified as phenocrysts
replacement by chlorite in the dacite porphyry. The rock is a greenish color with disseminated pyrite
mineralization in the fractures of the well preserved porphyritic rock.
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Figure 7-3: El Toro hydrothermal alteration zones
7.3
Structural Control
The North Peruvian Andes show remarkable and complete Cretaceous siliciclastic sedimentation and
accumulated in a carbonate platform followed by a major subsidence which, during the Cenozoic, was
affected by a compressive tectonic phase. The result is a system of folds and thrust faults converging to
the east.
The high-angle Andean NW-SE fault system is the main control on the trend of the Arena and La Virgen
deposits. This in turn intersected other subsidiary structural systems trending NE-SW, EW and NS,
generating excellent areas of weakness to host economic mineralization. This whole system is cut by
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numerous stocks and sub-volcanic porphyry domes with felsic compositions, which were a source of
mineralizing fluids for different mineralized areas in the range covered by the Chim Formation.
Figure 7-4: Regional structural interpretation
7.4
7.4.1
Lithology and Stratigraphy

Chicama Formation - Upper Jurassic
The Chicama Formation comprises thinly interbedded mudstone, bituminous mudstone, siltstone, and
minor sandstone with local intercalations of clay and reworked tuffaceous material. These terrigenous
sediments were deposited in a shallow, inland-sea basin flanked to the east by the emerged continent and
to the west by a volcanic arc. The sediments eroded from the continental side are mainly quartz sands,
while the sediments derived from the volcanic arc are typically clay-rich and tuffaceous material. The
shallow, restricted nature of this basin resulted in the development of a reducing environment, which
favoured the formation of organic deposits. These organic deposits are present as bituminous or
anthracitic coal beds. Regionally within the Chicama formation, small gold mineralization structures
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Page 19
associated with stocks and sills of dacitic composition have been recognized. Usually they possess
irregular amounts of polymetallic elements (Hg-As-Ag-Cu-Zn-Pb) as well.
7.4.2
Lower Cretaceous
The Lower Cretaceous is characterized by clastic sedimentation in a highly oxygenated sea environment.
To the east, the continent was affected by continuous uplift concurrent with basin subsidence. These
conditions resulted in a significant accumulation of detrital sediments. Additionally during this period, the
island arc to the west of the sedimentary basin was subjected to intense erosion due to a reduction in
magmatic activity. This resulted in the formation of a highly oxygenated, open sea environment as
opposed to the reducing conditions created by the inland sea during the Jurassic.
7.4.2.1 Chim Formation
The Chim Formation consists of a sequence of alternating sandstones, quartzites with shales at the
bottom. The upper part consists of a sequence of white quartzite. This unit conformably overlies the
Chicama unit. In the lower and intermediate levels of the Chim formation, occurrence of gold
mineralization is frequent in the contact breccias. Several gold deposits hosted within the Chim
Formation have been identified in the recent exploration boom, Chim such as La Arena, La Virgen and
the Santa Rosa mine (Comarsa) (Figure 7-5). The La Arena site is located at the base of the Chim
Formation sediments.
Figure 7-5: Stratigraphic column (after V. Quirita, 2006)
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7.4.2.2 Santa Formation

This unit is characterized by shales, marly limestones and dark gray interbedded sandstones. The Santa
Carhuaz Formation overlies the Chim and records sediment deposition during a relatively passive
tectonic period.
7.4.2.3 Carhuaz Formation
The Carhuaz Formation consists of grey, dirty sandstone with a red and purple hue interbedded with grey
mudstone. White quartzite beds are interbedded with sandstone and mudstone in the upper portion of this
sequence. Alternations of shales and gray, reddish to pink sandstones are also observed, occasionally
alternating with white quartzite at the top of the beds.
7.4.2.4 Farrat Formation Lower Cretaceous
The Farrat Formation consists of thick, white sandstone beds that commonly display planar cross
stratification and local pebble conglomerates. The Farrat Formation is similar to the Chim Formation
however, the Farrat Formation lacks the coal beds and grey colour observed in the latter.
During the Upper Cretaceous and part of the Lower Tertiary, extensional tectonism facilitated the
emplacement of plutons along the length of the coast, culminating in the emplacement of the Coastal
Batholith west of the Project area.
The sequence consists of white sandstone and medium to coarse grained quartzite, approximately 500 m
thick. This formation conformably overlies the Carhuaz formation. The clastic horizons of the Farrat
sequence are considered excellent hosts for disseminated gold mineralization due to their permeability, as
is observed in the El Toro deposit.
7.4.3
Inca, Chulec and Pariatambo Formation - Middle Cretaceous
The units consist of alternating sandstones, shales and limestones. No occurrence of gold mineralization
is known in these formations.
7.4.4
Volcanic Calipuy Formation - Upper Cretaceous to Lower Tertiary
During the Tertiary, the magmatic arc migrated further east initiating the onset of continental volcanism
and the development of small volcanic arcs oriented in a south-southwest/north-northeast direction. This
event resulted in the present day alignment of the volcanic structures of the Calipuy in the area southwest
of Huamachuco, east of the deposit area. The Calipuy Group rocks are calc-alkaline in composition and
are predominately andesite, with lesser dacite and rhyolite observed. The volcanic structures are
predominantly domes or dome complexes.
The bottom consists of a thick sequence of rhyolitic, rhyodacitic and dacitic lavas. In both areas of the
edge, it has been possible to recognize subvolcanic structures associated with hydrothermal activity.
Based on field observations, these volcanics have been assigned to the upper Cretaceous to Lower
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Tertiary. Recent K-Ar radiocarbon dating results from Geochron Cambior Laboratories (July 1998)
reported ages of 16.5 Ma to 18.9 Ma (middle Miocene) for samples taken from the top of the sequence.
7.4.5
Intrusive Rocks
In the region between Huamachuco and Cajabamba, hypabyssal intrusive bodies of tertiary age have
been recognized and are related to the presence of dome forms, emplaced within a NW-SE structural
corridor, cutting Mesozoic sedimentary formations. Usually, these intrusives emerge as small stocks
isolated in or on the periphery of the domes landform. Their compositions vary from diorite porphyry
andesitic, dacitic porphyry and quartzite porphyry. At depth, these stocks seem to unite and form one
larger intrusive body, as in the "Domo Huamachuco" and "Domo Algamarca". Certain sub-volcanic
hypabyssal domes have laccolithic peripheral intrusions with a strong NW-SE structural control, such as
La Arena and Virgen. Other intrusions associated with minor dome forms are located in the Cochapampa
area. These intrusions represent the southern periphery of the Algamarca Dome, which has a central
dacitic composition that changes gradationally to andesitic at its limits. Between the towns of Marcabal
and Purumarca, hypabyssal intrusive outcrops of intermediate composition have also been identified,
covering areas up to 4 x 2 kilometers, cutting the Chicama shales and sandstones of the Chim formation.
Radiometric ages, with the exception of the Florida deposit, clearly indicate that the hypabyssal intrusions
predate Calipuy volcanics.
7.5
Mineralization
The gold mineralization in the region of Huamachuco occurs mostly at the intersection of Andean
structural "train" NW to NE transfer. Structural factors related to the transfer affected alignment of the
volcanic centers and dome complexes during emplacement.
In sedimentary environments, permeable characteristics of clastic rocks combined with faulting, intrusions,
and the degree of fracturing and / or brecciation, present the ideal conditions of formation of gold deposits,
such as La Virgen, La Arena, Shahuindo and Santa Rosa. Finally, the lithological composition of the
intrusive (preferably intermediate to felsic) and degree of fracturing in the stockwork is crucial to the
formation of Cu-Mo-Au porphyry deposits.
There is a direct genetic relation between the Cu-Mo porphyry systems, epithermal sediment-hosted Au,
and polymetallic veins that occur in the periphery of the hypabyssal intrusive, as is observed in the Arena
and Shahuindo deposits in Algamarca.
At the El Toro site, economic Au mineralization is hosted in quartzites and sandstones, which are strongly
fractured and the fractures are filled with iron oxides (goethite, jarosite and hematite). In various El Toro
breccias (hydrothermal, contact and tectonic types), Au grade varies according to the fluid origins and
host rock composition. Breccia thicknesses range from 0.05 to 2 m. Pyrite is the most abundant sulfide
and is found mainly in the dacitic intrusive. Chalcopyrite, bornite, chalcocite and covellite are also
observed, mainly at the dacitic porphyry intrusive contact with the sandstones.
SGS Canada Inc.
Figure 7-6: Mineralization models (from CDC Gold Corp.)
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8
8.1
Page 23
Deposit type
Deposit Summary
The gold mineralization type identified in the El Toro deposit is of the high sulfidation epithermal in clastic
sedimentary rocks, such as sandstones and quartzites of the Chimu Formation. The volcanic
assemblages epithermal acid-sulfate alteration is not well documented, and is presented with varying
intensities and dimensions regarding its lateral and vertical zonation. The deposit shows a clear structural
control, which is characteristic of these deposits; its tectonic setting is determined by the interaction of
faults. The principal tectonic event generated an opportunity for the development of cortical dacitic subvolcanic rocks flanking the anticline.
8.2
Epithermal Deposits
Epithermal gold ( Cu & Ag) deposits form at shallower crustal levels than porphyry Cu-Au systems, and
are primarily distinguished as low or high sulfidation using a criteria of varying gangue and ore mineralogy,
deposited by the interaction of various ore fluids with host rocks and groundwater. High sulfidation
systems vary with depth and permeability control, and are distinguished from several styles of barren acid
alteration.
Figure
8-1: High sulfidation epithermal deposits model (modified from Hedenquist and Lowenstern)
SGS Canada Inc.
8.3
Page 24
Geological Characteristics
Crustal level and ore fluid characteristics provide the first and second order distinctions in the classification
of Pacific Rim magmatic arc gold deposits.
Figure 8-2: Conceptual model for styles of magmatic arc epithermal Au-Ag and porphyry Au-Cu (image sourced from
Corbett and Leach, 1998)
8.3.1
High Sulfidation Type
Although termed acid sulphate in the early geological literature (Heald et al., 1987), high sulfidation
systems are now well defined by characteristic alteration and mineralization (Corbett and Leach, 1998;
Sillitoe, 1999; White and Hedenquist, 1995). The term acid sulphate is now preferred for alteration formed
by collapsing surficial cooler acidic waters (Corbett and Leach, 1998), typically within low sulfidation
systems. High sulfidation gold deposits are the major producers in the Andes of South America (e.g.
Yanacocha, Pierina, El Indio, La Coipa), and represent some significant undeveloped resources (e.g.,
Pascua-Lama-Veladero, Chile-Argentina).
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Table 8-1: Genetic types of epithermal gold deposits
Genetically related
High sulfidation (HS)
Low sulfidation (LS)
Mainly andesite- rhyodacite
Andesite- rhyodacite- rhyolite
Disseminated: dominant
Open-space veins: dominant
replacement: common
stockwork: common
stockwork: minor
disseminated & replacement: minor
Aerially extensive & visually
Commonly restricted and visually
prominent
subtle
Fine-grained, massive, mainly
Chalcedony &/or quartz displaying
replacement origin; residual,
crustiform, colloform, bladed,
slaggy (vuggy) quartz

commonly
cockade & carbonate-replacement
volcanic rocks
Deposit form
Alteration Zone
Quartz gangue
hosts ore
textures; open space filling
Carbonate gangue
Absent
Ubiquitous, commonly
managanoan
Other gangue
Barite widespread with ore;

native
Barite & (or) fluorite present locally;
sulfur commonly fills open

spaces
Sulfide abundance
10-90 vol% mainly finegrained,

partly laminated pyrite
Metals present
Cu, Au, As (Ag, Pb)
SGS Canada Inc.
barite commonly above ore
1-20 vol%, but typically <5 vol%,

predominantly pyrite
Au and (or) Ag (Zn, Pb, Cu)
Page 26
Figure 8-3: Epithermal deposits global occurrences (image sourced from Corbett and Leach, 1998)
8.4
Mineralized High Sulfidation Systems
Mineralized high sulfidation epithermal gold deposits predominantly occur in younger, poorly eroded
magmatic arcs (e.g., Andes of South America), although some are noted on the older arcs of eastern
Australia. Thus, most occur in volcanic host rocks and demonstrate associations with sub-volcanic
intrusions, particularly flow dome complexes. Most are also commonly localised by similar major structural
corridors to those which host porphyry Cu-Au deposits, where more deeply eroded.
8.4.1
Fluid Characteristics
High sulfidation deposits are typically derived from fluids enriched in magmatic volatiles, which have
migrated from intrusion source rocks at depth to elevated epithermal crustal settings, with only limited
dilution by groundwater or interaction with host rocks. Major dilatant structures or phreatomagmatic
breccia pipes provide conduits for rapid fluid ascent, facilitating the evolution of the characteristic high
sulfidation fluid. As the rapidly rising fluid becomes depressurised, magmatic volatiles (dominantly SO2 but
also HCL, CO2, & HF) come out of solution and react with water (magmatic and groundwater) and oxygen
to produce increasing concentrations of H2SO4. Under lower temperature conditions (<300C) at elevated
crustal settings (epithermal environments), dissociation produces hot acidic fluids (Corbett and Leach,
1998). Sulphur therefore occurs in a +4 state as SO2 in an oxidizing fluid. Characteristic zoned high
sulfidation alteration is derived from the progressive cooling and neutralization of the hot acidic fluid by
interaction the with host rocks, typically at epithermal levels.
Field observations indicate that initial zoned alteration is overprinted by the deposition of sulfide ore and
additional gangue minerals is accounted for in the two phase fluid flow model (White 1991; Corbett and
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Page 27
Leach, 1998), in which this alteration results from the interaction with host rocks of the more rapidly
migrating volatile rich-component of the high sulfidation fluid, while the subsequent liquid-rich component
deposits sulfides and Au-Ag-Cu mineralization.
8.4.2
Permeability
Dilatant structures or phreatomagmatic breccia pipes commonly provide conduits for the rapid introduction
of hot acidic fluids into the epithermal environment where they react with host rocks to produce
characteristic alteration. Most ore systems display elements of structural, breccia, or lithological control
(Sillitoe, 1999; Corbett and Leach, 1998). In many instances structural controls predominate in the deeper
portions and pass upwards to a lithological control. Dilatant subsidiary structures with angular
relationships to major structural corridors host ore and facilitate rock reaction, while elsewhere permeable
host rock lithologies may control fluid flow. At the Maragorik deposit in Papua New Guinea, fluids which
produced alteration are interpreted to pass from structures to permeable lithologies, but later
mineralization is only well developed at the intersection of structures and lithology (Corbett and Hayward,
1994).
Diatreme flow dome complexes are the most important breccia control (e.g. Pascua, Wafi, Yanacocha,
Veladero), particularly at the contact between the diatreme and brecciated host rocks, although phreatic
breccias are locally recognised. Many deposits are associated with dome margins (Gray and Coolbaugh,
1994). The rapid fluid depressurisation associated with violent diatreme eruptions facilitates dissociation
of acid-bearing fluids resulting in initiation of high sulfidation alteration, and also provides important ground
preparation. The intersection of dilatant structures and diatreme margins (e.g., Lepanto), or permeable
horizons (e.g., Nena), represent ideal ore settings. Structural control commonly extends from major
structural corridors which localise the ore system (e.g., Pascua-Lama-Veladero, Gidginbung), to dilatant
ore-hosting fractures at outcrop scale (e.g., Mt Kasi). At Nena, a major dilatant structural corridor some 12
km long hosts several zones of high sulfidation alteration and controls the individual ore hosting dilatant
fractures (Bainbridge et al., 1994; Corbett and Leach, 1998).
8.4.3
Alteration
High sulfidation ore systems are characterised by zoned alteration formed as a result of the progressive
cooling and neutralization of the hot acidic fluids by reaction with host rocks and groundwater (Corbett and
Leach, 1998). At the core of high sulfidation ore systems hot acidic fluids leach many components from
the host rocks leaving mainly only silica and some rutile, and so the altered rocks are termed residual
silica or vuggy silica, from the texture produced by the pseudomorphous removal of porphyritic feldspars
and rock fragments (Figure 8-4, Figure 8-5 & Figure 8-6). In many breccias finely comminuted rock
material is replaced by massive fine grained silica, while porphyritic intrusion fragments display the
characteristic vuggy texture (Figure 8-4). Vuggy silica provides important secondary permeability for later
mineralization.
SGS Canada Inc.
Figure 8-4: Vuggy silica alteration of porphyritic fragments breccia matrix (Corbett, 2002)
Figure 8-5: Vuggy silica alteration of lapilli tuff (Corbett, 2002)
Figure 8-6: Vuggy silica alteration of porphyry intrusion (Corbett, 2002)

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Page 29
The progressive neutralization and cooling of high sulfidation fluids by rock reaction produces alteration
moving away from the core in which zonation is characterised progressively outwards by mineral
assemblages dominated by: alunite, pyrophyllite, kaolin, illitic, and chloritic clays (Corbett and Leach,
1998). These alteration patterns display similar zonation in many deposits (e.g., Nena in Bainbridge et al.,
1994; Corbett and Leach, 1998), with variations mainly attributed to crustal level of formation.
Mineralogies dominated by pyrophyllite-diaspore-dickite may be indicative of higher temperature (deeper)
conditions, while lower temperature (opaline) pervasive silicification or alunite-kaolin dominate in cooler
(higher level) settings. Similarly, thin alteration zones may suggest that fluid conditions have changed
rapidly, possibly in a quenched higher level system (or distal to the fluid upflow), while wide zonation
characterise slower changing fluid conditions more typical of deeper levels (or more proximal to the fluid
upflow).
8.4.4
Mineralization
Sulfide mineralization is generally introduced after alteration into the central portion of the zonation by
feeder structures or breccia pipes, and is characterised by sulfide assemblages dominated by pyrite and
enargite (including low temperature polymorph luzonite), and lesser covellite (typically at deeper levels)
and local, generally peripheral, tennantite-tetrahedrite (White and Hedenquist, 1995; Corbett and Leach,
1998; Sillitoe, 1999). While most high sulfidation systems are sulfide-rich where fresh, total sulfide content
is not an indicator of this style of mineralization. Many high sulfidation systems are mined in the weathered
oxide ores in order to avoid difficult and hence higher cost sulfide metallurgy.
Ore textures are characterised by: filling of open space in the existing vuggy silica, fissure veins within
subsidiary dilatant structures, or matrix to breccias as: either permeable phreatomagmatic, phreatic
breccias, open space expansion breccias in dilatant structural environments, or later sulfide matrix in synmineralization fluid transport breccias, termed hydrothermal injection breccias in Corbett and Leach
(1998). Barite and alunite gangue are commonly deposited with sulfides, and this constitutes a separate
generation of alunite to that in the zoned alteration (Photo 36). Late stage sulphur may be deposited at
temperatures below 100C.
Vertical metal zonations are apparent as higher copper contents at deeper levels and greater abundances
of gold or gold-silver along with local mercury, tellurium and antimony, in the upper portions of poorly
eroded systems, or at the margins (Corbett and Leach, 1998).
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Exploration
Since 2010 Carlos Alberto Daz Marios (CDM) performed exploration campaigns on the El Toro Project.
The exploration programs included geochemical prospecting work, lab work, specialized studies and
diamond drilling. These studies were developed in partnership with private entities such as Geoval SA., Ak
Drilling, MYAP (Dra. Gladys Ocharn) and GEOEXINPE SAC, SAC Geomechanics, etc. The work done to
date includes: detailed geological mapping, surface geochemical channels, RC drilling, photogrammetric
restitution, etc.
9.1.1
Photogrammetric restitution
Geomechanics SAC conducted a photogrammetric survey at a 1 / 5,000 scale with contours every 2 m
based on flight data from SAN 455-97A. A GPS was statically positioned using a satellite and this
coordinate point was used as the base (MASTER). "TRUJILLO", a known coordinate point established by
the National Geographic Institute was used in the SIRGAS project with a receiver (ROVER). The
MASTER and ROVER receivers simultaneously received radio waves emitted by satellites, in which the
number of satellites was controlled bythe dilution factor (PDOP). WGS 84 Geodetic coordinates were
obtained as a result of field data through POST-PROCESS TRIMBLE, GEOMATIC OFFICE software and
Ashtec SOLUTIONS were used to adjust to the elevation at sea level with the EGM96 geoid model.
Geological mapping was done on a scale of 1: 1,000 using stations every 25 m up to 50 m. The field
station information (location, information and detailed descriptions of the structural, lithological, alteration
and mineralization) are registered in the corresponding database.
9.1.2
Surface Geochemistry
The surface geochemistry work on the El Toro property consists of rock channel sampling on slopes in
which the samples are taken in 2 m lengths with depths ranging from 0.50 0.20 m. The channels are
selected depending on the slope of the survey zones and geological mapping. CDMs team has taken a
total of 5,371 samples to date,which were sent to the analytical laboratory of the Virgin (Minera San
Simon) to be analyzed for Total Au, Au soluble, Total Ag, Ag and Cu soluble.
9.1.3
Drilling
The drilling campaign executed by CDM was completed between December and July in 2012 and 2013
totalling 8 drillholes and 3,502.40 m. The average core recovery during this campaign was 93.48% and
the diameters used for drilling were HQ and NQ. A total of 1,594 core samples were sent to SGS Peru for
preparation and analysis.
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10 Drilling
The During the early years, RC drilling was used as the main exploration technique in order to identify
lithology, alteration, mineralization and the overall geological model of the El Toro deposit. It was also
used to delineate the morphology, structural control of mineralization and the size of the orebody. As the
project advanced, diamond drilling was adopted to further explore the El Toro site. Diamond drilling has
the following advantages: better recognition of lithology, alterations, structural geology, mineralization of
the deposit, and samples are less prone to be contaminated.
Drilling at the El Toro Project was variable during recent history and was performed by different
companies (See Table 10-1). A total of 9463.35 m of DDH drilling (50 DDH) and 5,994.50 m of RC drilling
(50 RCH) have been executed since 1995.
The first stage of drilling was done by Oromin and Barrick Gold Corporation totalling of 5,994.50 m in 50
reverse circulation (RC) holes. During Cambiors involvement (2003-2005), a total of 5956.25 m of drilling
(42 DDH) was completed. The drilling carried out by CDM (2012-2013) totals 8 DDH totaling 3,507.10 m
with an average recovery of 93 and DDH diameters were HQ and NQ (Table 10-2).
Table 10-1: Drilling summary
Company
Year
Hole Type
Meterage Drilled
DDH
RC
DDH
RC
1995
322.50
1196
48
5,672.00
50
5,994.50
2004
13
2,269.15
2005
29
3,687.10
42
5,956.25
2012
353.40
2013
3,153.70
SUBTOTAL
3,507.10
GRAND TOTAL
50
50
9,463.35
5,994.50
Oromin- Barrick
Gold Corp.
SUBTOTAL
Cambior Mining Co.
SUBTOTAL
Carlos Diaz Marios
(CDM)
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Table 10-2: Drilling data verification
Company
Oromin
1995-96
North
1998-99
Cambior
2004-05
Geoval
CDM
CDM
SGS
2012 Report
2014 report
2014 database
2015 database
Hole count
NA
50
50
NA
Length drilled (m)
5,995.00
5,994.50
5,994.50
NA
Assays count
NA
NA
3,996.00
NA
Length assayed (m)
NA
NA
5991.50
NA
Holes count no assays
NA
NA
NA
Hole count
NA
NA
NA
NA
Length drilled (m)
13,050.00
NA
NA
NA
Assays count
NA
NA
NA
NA
Length assayed (m)
NA
NA
NA
NA
Source
NA
NA
NA
NA
Hole count
NA
42
42
42
Length drilled (m)
5,684.00
5,956.25
7,685.95
7,685.95
Assays count
NA
NA
3,603
3,603
Length assayed (m)
NA
NA
7,190.70
7192.70
NA
NA
Hole count
NA
11
11
CDM
Length drilled (m)
NA
3,507.10
3,692.15
3,692.15
2013
Length assayed (m)
NA
NA
3,187
3,448.30
NA
NA
10.1 Oromin- Barrick Gold

The results obtained through geochemical prospecting revealed anomalies related to a gold deposit at El
Toro. Oromin and Barrick decided to investigate these anomalies with a drilling campaign. The 1995-1996
drilling program totaled 3,994.50 m of RC holes.
10.2 Cambior
The drill program occurred between 2004 and 2005, totalling 5,956.25 m in 42 diamond drillholes. The grid
was spaced at distances of more than 150 m. In total 3,603 core samples were taken systematically every
2 m. The average core recovery during this campaign was 87.07%.
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10.3 Carlos Daz Marios (CDM)

The drilling carried out by CDM (2012-2013) included 8 diamond drillholes totaling 3,507.10 m with an
average recovery of 93%.
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11 Sample preparation, Analyses and security

11.1 Sample Preparation
CDC chips (rock & panel chips), trench, channel, drill core and production (blast & face holes) samples
are prepared at the El Toro mine site sample preparation facility. The preparation carefully follows the
sampling protocol well described in the guidelines outlined by CDCs geology team. SGS has reviewed the
protocol and is in agreement with the procedures. SGS also verified that the procedures are being
properly followed by CDC personnel throughout the 2013 El Toro exploration program.
The samples were prepared by the SGS Peru laboratory where no employees, consultants or
collaborators of CDC have intervened.
Control measures to maintain sample integrity, proper storage, recording and shipment to the testing
laboratory are part of the geochemical sampling program that CDC has established for the El Toro project.
The samples are grouped into batches and sent from the project to SGS laboratories in Lima by land
transport (in a truck equipped for this purpose). Sample preparation procedures are described below.
11.2 Analyses
11.2.1 Laboratory Certification
For the CDC drilling program at the Toro Project, assaying was completed by SGS laboratories in Lima.
SGS is certified according to ISO 9001: 2000 by the international organization ABS Quality Evaluations
and has a NTC-ISO 17025 accreditation by the Superintendence of Industry and Commerce (SIC) as a
testing laboratory. Analytical work is performed in accordance with recognized standards such as ASTM,
ISO, JIS, and other accepted industry. The analytical method used is according to industry standards and
data is appropriate for use in the resource estimation.
11.2.2 Analytical Procedure

Samples are subjected to drying (<70 C) and then go through the primary crusher (1/4") and secondary
crushing (10 mesh), pulverized in pot Ac-Cr to -140 mesh, and are finally bagged. In this laboratory the
samples were analyzed with the following packages:
Au-FAA313 is a 30 g fire assay and completion by atomic absorption spectrometry (AAS) with a
detection and upper limit measurement range from 5 to 5000 ppb.
Ag and Cu-AAS42C multi acid digestion, with a detection and upper limit measurement range from 0.3 to
500 ppm and 2 ppm Ag and 5% for Cu.
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ICP12B is an assay by aqua regia digestion followed by a multi-element ICP-AES scan for base metals,
trace and lithological elements. Inductively Coupled Plasma Atomic Emission Spectroscopy (ICP-AES, 37
elements), multi-element list and limits are shown in Table 11-1.
Table 11-1: Geochemistry analysis and detection limits (ICP12B)
ELEMENTS
Ag
Al
As
Ba
Be
Bi
Ca
Hg
K
La
Li
Mg
Mn
Mo
Sb
Sc
Sn
Sr
Ti
V
W
Cd
Co
Cr
Cu
Fe
Na
Ni
P
Pb
S
Y
Zn
Zr
Aqua Regia ICP12B

Detection Limit Upper Limit
2
100
0.01
15
3
10000
5
10000
0.5
2500
5
10000
0.01
0.15
1
10000
0.01
0.15
0.5
10000
1
10000
0.01
0.15
2
10000
1
10000
5
10000
0.5
10000
10
10000
5
10000
0.01
0.15
1
10000
10
10000
1
10000
1
10000
1
10000
0.5
10000
0.01
15
0.01
15
1
10000
0.01
15
2
10000
0.01
5
0.5
10000
1
10000
0.5
10000
SGS Canada Inc.
Unit
ppm
%
ppm
ppm
ppm
ppm
%
ppm
%
ppm
ppm
%
ppm
ppm
ppm
ppm
ppm
ppm
%
ppm
ppm
ppm
ppm
ppm
ppm
%
%
ppm
%
ppm
%
ppm
ppm
ppm
Page 36
11.3 Quality Control and Quality Assurance Programs

Previous operators of the property did not include a QAQC protocol in their sampling system. CDM started
implementing a QAQC program, which was then verified by Geoval. The results of their study are
presented later in the section.
CDC Gold implemented their own Quality Assurance and Quality Control (QAQC) procedure to validate
the sample results, whereby one blank, one standard and one duplicate material are inserted within
approximately every 35 samples.
Blanks (BLK): samples used were acquired by the laboratory AGQ Technological Services Labs.
Standards (STD): samples used are acquired by the laboratory ORE RESEARCH &
EXPLORATION, standards used are: Oreas 201 and Oreas 901 (Table 11-2 and Table 11-3).
Duplicates (DUP): the choice of this sample was taken by the logging geologist and assistant, who
considered criteria such as homogeneity of mineralization in the core.
Table 11-2: Certified values, SDs, 95% confidence and tolerance limits for OREAS 201
Constituent
Certified
Value
1SD
95% Confidence
Limits
95% Tolerance
Limits*
Low
High
Low
High
Fire Assay
Gold, Au (ppm)
0.514
0.017
0.507
0.521
0.51
0.518
0.498
0.03
0.481
0.516
0.494
0.503
Aqua Regia Digestion

Gold, Au (ppm)
* Determined from RSD1 of INAA2 data for 30g and 25g analytical subsample weights for fire assay and Aqua Regia digestion,
respectively; Note: Intervals may appear asymmetric due to rounding.
1
2
Relative Standard Deviation

Instrumental Neutron Activation Analysis (INAA) is one of the most sensitive analytical techniques used for the quantitative multi-
element analysis of major, minor, and trace elements in samples from almost every conceivable field of scientific or technical
interest.
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Table 11-3: Certified values, SDs, 95% confidence and tolerance limits for OREAS 901
Constituent
Certified
Value
1SD
95% Confidence
Limits
95% Tolerance
Limits*
Low
High
Low
High
353
372
360
365
Fire Assay
Gold, Au (ppb)
363
18.3
* Tolerance limits calculated from 20 x INAA analyses on 1.2g subsamples; Note: Intervals may appear asymmetric due to rounding.
11.3.1 Results of Quality Control and Quality Assurance Monitoring

11.3.2 Standards Statistics
Standards are certified samples of known grade that are submitted to monitor the accuracy of a
laboratory. Standard material is inserted into the sample stream to test the accuracy of the laboratory.
Standards samples ensure that the laboratory quality control procedures are effective and that no
significant bias exists within or between assay batches.
Two separate standard reference samples (STD 201 & STD 901) were prepared by commercial laboratory
OREAS RESEARCH and CDC introduced them to control the accuracy of the gold grade in June 2013.
Figure 11-1: Geoval Standard 201 OREAS samples
SGS Canada Inc.
Figure 11-2: Geoval Standard 901 OREAS samples
Figure 11-3: CDM Standard 201 OREAS samples
SGS Canada Inc.
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Page 39
Figure 11-4: CDM Standard 901 OREAS samples
11.3.3 Blanks Statistics

Blanks are barren samples with an expected very low grade. These are submitted to ensure that there is
no contamination between samples during the sample preparation or assaying.
CDC Gold inserts pure quartz material known to be devoid of gold mineralization.
A total of 54 blanks were submitted with the samples for analysis. Over 95% (23 out of 24 samples) of the
Geoval blanks assayed less than 0.005 ppm (g/t), which is two times the detection limit of 0.0025 ppm
(g/t). The blank results submitted by CDM for gold levels were all equal to the detection limit. SGS
consider both results acceptable. The results display that there is no evidence of systematic gold
contamination based on the blanks that were submitted with samples. There were no mislabels or
sequence errors for the barren material used by CED Gold Corp.
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Figure 11-5: Blanks Au (ppm) samples Geoval
Figure 11-6: Blanks Au (ppm) - CDM
11.3.4 Duplicate Sampling

Duplicates were submitted for analysis to examine laboratory precision. They are collected, prepared and
assayed in the same method as the originals.
A total of 52 duplicate samples (24 from Geoval & 28 samples from the CDM sampling program) were
collected. The results of the duplicate analyses versus the original analyses are shown in Figure 11-7 to
Figure 11-10. The results show a good level of precision however, there are a few results outside of the
confidence level.
SGS Canada Inc.
Figure 11-7: Geoval duplicates Au (ppm)
Figure 11-8: Au original vs Au duplicates - Geoval sampling
SGS Canada Inc.
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Figure 11-9: CDM duplicates Au (ppm)
Figure 11-10: Au original vs Au duplicates CDM sampling
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Page 43
SGS compared duplicate data from production holes, as well as face samples duplicates. 193 blast hole
sample duplicates were analyzed and a conservative bias was identified (Figure 11-11). A 5% difference
exists between the means of the original versus the duplicate data sets (Table 11-4). The reproducibility of
the face samples (56) was poor (Figure 11-12). Considerable variability exists between select samples
(outliers were removed from the graph), and there exists a 4% difference between the means when
outliers are not included. (Table 11-5)
Figure 11-11: Au blasthole original vs duplicates

Table 11-4: Au blasthole statistics
Au (ppm) Original
Mean
Au (ppm) Duplicate
0.639
Mean
0.671
Standard Error
0.055
Standard Error
0.059
Median
0.398
Median
0.425
Mode
0.333
Mode
0.305
Standard Deviation
0.771
Standard Deviation
0.816
Sample Variance
0.594
Sample Variance
0.666
Minimum
0.300
Minimum
0.158
Maximum
5.802
Maximum
6.866
Count
193
Count
SGS Canada Inc.
193
Page 44
Figure 11-12: Au face samples original vs duplicates

Table 11-5: Au face samples statistics
Au (ppm) Original
Mean
Au (ppm) Duplicate
0.379
Mean
0.396
Standard Error
0.057
Standard Error
0.570
Median
0.227
Median
0.244
Mode
0.492
Mode
0.003
Standard Deviation
0.424
Standard Deviation
0.425
Sample Variance
0.180
Sample Variance
0.180
Minimum
0.003
Minimum
0.003
Maximum
2.381
Maximum
2.165
Count
56
Count
SGS Canada Inc.
56
Page 45
11.4 Conclusion
The sample QAQC procedures in place are generally considered appropriate for the project at its current
level of development. The creation of two new standards with proper round robin certification will ensure
that the accuracy of results continues to be tested in the future. These standards will be used in the
program in addition to the OREAS standards.
No considerable biases exist in the data sets with the exception of the face samples; an investigation into
the considerable variability of select samples is strongly recommended and face sample data should not
be used for any estimation without proper calibration. SGS is also of the opinion that the current
organization of the database introduces the possibility of human error. An evaluation of the database
platform is advised.
The data provided by CDC Gold Corp. is according to industry standards and is appropriate for use in the
resource estimation.
SGS Canada Inc.
Page 46
12 Data verification
SGS performed multiple verifications including a site visit and the review of digital information including the
drillhole database in preparation for this technical report.
The data provided by CDC includes:
AutoCAD files for pits, topography, and other surfaces
Digitized plans and sections
Historical reports
Production reports
Pit optimization parameters for COG
Historical work from Cambior (including SG), North and Oromin

o Mostly geophysical (electrical and magnetic data)
Geological Database (collars, assays, surveys)

o New drilling
o Old drilling
o
o
o
Blastholes
Lab certificates
Standards certificates
Contracts and Leases
Procedures and protocols
The database (DB) provided by CDC for the resource estimation was in the form of csv files and included
collars, surveys, assays, lithology, alteration and mineralization.
SGS did the following steps in order to verify the data for the El Toro Project:
1. Site Visit
2. Standard verifications on the drillhole DB (overlaps, extreme values, visual 3-D checks)
3. Verification of QAQC results
4. Verification of ore wireframe shells
5. Study of what controls gold grades and solubility because they are key to the resource estimation
(Lithology or Alteration or Mineralization or a combination)
6. Variography, Histograms
7. Verification of possible biases of specific sample types by scatter plots of close paired samples
between blastholes (BH) and diamond drillholes (DDH), between reverse circulation holes (RC)
and DDH, between face samples and BH.
8. Verification of density statistics provided against available measurements
9. Check sampling
SGS Canada Inc.
Page 47
12.1 Site Visit
Figure 12-1: Panorama of the office and workings
From October 28 to October 30, Yann Camus, Eng. of SGS visited the El Toro project in company of
Alberto Velsquez, General Manager of CDC Gold. On October 31, Mr. Camus visited the CDC Gold
office in Lima with Mr. Velsquez.
Many individuals involved in the project were encountered, including:
Walter Acero, Chief of geology, CDC Gold

Carlos Salinas Lazaro, Senior Geologist, Mine and Exploration, CDC Gold
Erikzon Catacora, Control and management manager, CDC Gold
Enrique Lopez, Leach pads extensions, CDC Gold
Jos A. Terrones Alvarado, Eng., M.Sc., Geoval Per S.A.C.
Francisco Yupanqui Sifuentes, Database and software analyst, JFA Consultants SAC
Oscar Fras, Mining Advisor, Consultante externo
The author visited the geological office, the core shack presently under construction, the core storage
facilities, the leach pad, and the plant. He observed the blast sampling procedure.
The core storage facility consists of a combination of core boxes and RC chips boxes, all labelled by hole
ID and depth.
Figure 12-2: Core storage facility displaying proper storage
SGS Canada Inc.
Page 48
The Cambior core is still available and was witnessed by the author. Eighty-seven (87) core samples were
selected for check sampling. It was well communicated to CDC to send core samples to SGS
Laboratories in Chile. At the time of compiling this report, it was not clear what stage the check sample
program was at. It was recommended to re-log the Cambior drill core to develop a better interpretation of
the complex geology and alteration sequences.
It was observed that mineralization remains open both laterally and at depth. Exploration drilling is
recommended to increase resources particularly in zones that could affect the potential scale of
operations.
12.2 Standard Verification of the Geological Database

The final DB contains 36,636 collars, 46,046 assays, 8,122 lithologies, and 324 survey records. All
blastholes are vertical (dip at -90) and have a single assay record ranging from 0.5 to 9.6 m with an
average length of 6.2 m. Drillhole assay records range from 0.2 to 14.3 m in length with an average of
1.91 m. RC drillhole assay records range from 0.5 to 1.5 m in length with an average of 1.5 m. A total of
12 assay elements are present in the database. The AuS, AuT, AgS, AgT, Cu, Pb, Zn elements are the
main elements considered in this study.
There were no major problems with overlapping results, lithologies or other data. No problems were
encountered in regards to extreme values or incorrect units of measure.
12.3 Verification of QAQC Results

The QAQC system in place has performed well thus far; no major quality issues were detected. A full
discussion is presented in section 11.
12.4 Verification of Ore Wireframe Shells

The existing volumes made by Geoval for oxides, sulfides, and mixed zones were determined to be
unsuitable for resource estimation. As a result, SGS conducted a study to determine controls on gold
grade and solubility. Following the study, SGS designed alternative wireframe shells for oxide and sulfide
zones.
12.5 Controls on Gold Grade

The gold grade and solubility were compared with lithology, alteration and mineralization. This study was
important because this control is critical for resource estimation. It is difficult to link lithology or
mineralization to ore grades at present; as a result of this study SGS designed alternative oxide and
sulfide volumes as mentioned above.
SGS Canada Inc.
Page 49
12.6 Variography and Histograms

Variography was completed on the production data since there is abundant data available. The study
highlighted the directions of greatest continuity, leading to the conclusion that the production data is
reliable.
12.7 Analysis of Bias between Sample Types

Many scatterplots were created to determine if a bias exists between data of the various sample types.
The procedure was to take specific sample types and create scatterplots of spatially close paired samples
between blastholes (BH) and diamond drillholes (DDH), between reverse circulation holes (RC) and DDH,
and between face samples and BH. It was decided to disregard the face samples for resources estimation
because they were found to be biased when compared to blastholes, diamond drillholes and reverse
circulation holes data. There was no strong bias between the other sample types.
12.8 Verification of Density Measurements

Density measurements were verified and deemed suitable. For the oxide zone a previous study which
contained 178 density measurements over 6 lithologies was determined representative of the material that
was estimated. Since there was relatively low variability, a fixed density was calculated and used for
estimation.
12.9 Check Sampling by SGS

Eighty-seven (87) samples were requested to be sent for check sampling and at the date of writing this
report there were no results available.
12.10 Conclusion
No major issues were detected and SGS corrected inconsistencies prior to geological modeling and
resources estimation. The author considers the data to be of sufficient quality to be used in a resource
estimation.
SGS Canada Inc.
Page 50
13 Mineral Processing and Metallurgical Testing

Historical testwork described in this section was conducted between 2001 and 2005. Since then, actual
recoveries demonstrated different results for actual production recoveries between 2012 to the present.
13.1 Historical Testwork
13.1.1 Metallurgical Testwork by SGS

In November 2005 Cambior submitted a report including metallurgical information from SGS Lakefield
Research Chile S.A. completed Project 3511 -Recovery Gold from a Sample from Peru by bottle and
Column Leaching for Cambior Inc. The report includes 2001 reported data by Marcel Ramirez (General
Manager), Reinaldo Barrera (Manager of hydrometallurgy), Cecilia Gonzlez (Metallurgist) and Victor
Seplveda, (Technician) and is summarized here.
Bottle roll cyanide leaching tests and column tests were conducted on three gold ore samples submitted
by Cambior Inc. The program consisted of five bottle roll tests with standard cyanide leaching conditions
and two columns of 1 meter high with coarse ore. All of the bottle tests and one column test were done
with an intrusive ore sample; the other column was done with a composite of Sandstone and sample N5.
Gold and Silver head grade characterization was also performed. Main objective of this test program was
to obtain preliminary information on gold and silver extraction by cyanidation.
13.1.1.1 Tests from 2001
Three ore samples were received from Cambior Inc however, only two of them were investigated to
evaluate amenability of gold recovery by cyanidation. The head ore samples were assayed for Au, Ag,
SO4= and S. Results are summarized in the following table.
Table 13-1: Amenability of gold recovery by cyanidation (2011 tests)
Sample
Au, g/t
Ag, g/t
Sandstone average
1.35
2.50
Intrusive average
0.72
2.00
Sample # 5
0.31
1.00
Composite Sandstone + Sample # 5
0.78
<1
SO4 =, %
S Total, %
0.04
0.03
Bottle tests were performed with 33% solid, 1g/L of NaCN solution and roll agitated during 48 hours. pH
was kept constant at 10.5-11. Au and Ag dissolution kinetics, NaCN and CaO consumption were
monitored. Final residues were assayed for Au and Ag to calculate the head-residue balances.
Bottle test results are summarized in the following tables:
SGS Canada Inc.
Page 51
Table 13-2: Bottle test results intrusive (2001)
Intrusive sample
Test N
Particle size
Reagent Consumption, kg/t
Recovery, %
NaCN
CaO
Au
Ag
100% -1"
3.26
1.54
87.2
45.6
100% -3/4"
2.28
1.97
90.2
45.5
100% -1/2"
2.31
2.20
80.0
30.3
100% -1/4"
5.73
0.79
88.2
31.3
80% -200#
2.22
0.98
93.2
34.2
Table 13-3: Bottle test results sandstone (2001)
Composite from Sandstone and Sample # 5

Test N
Particle size
Test N: 6
Recovery, %
NaCN
CaO
Au
Ag
100% -1"
1.96
1.54
77.9
6.0
Test N: 7
100% -3/4"
1.91
0.52
84.5
21.5
Test N: 8
100% -1/2"
1.43
1.34
87.0
9.7
Test N: 9
100% -1/4"
4.67
0.39
83.8
32.8
Test N: 10
80% -200#
3.43
0.73
84.9
33.8
As seen in the tables above there is little effect of grind size on gold recovery.
Column tests were performed with both the intrusive and the sandstone samples. The columns were
charged with 100% -1 ore, and irrigated with 0.5 g/L NaCN solution in a closed circuit with activated
charcoal. The results are summarized in the following table. The recovery of gold for both columns was
79.9%.
Table 13-4: Results of column cyanidation tests
SAMPLE
Units
Intrusive
Composite Sand-5
ORE SIZE
(inches)
100% -1"
100% -1"
ORE WEIGHT
(kg)
52.24
40.06
HEAD GRADE Au
(g/t)
0.72
0.78
HEAD GRADE Ag
(g/t)
2.00
<1
COLUMN HEIGHT
(cm)
110
110
FLOWRATE
(l/h/m2)
12.2
12.2
NaCN
(g/l)
0.5
0.5
AGGLOMERATION :
SGS Canada Inc.
SAMPLE
Units
CaO
Page 52
Intrusive
Composite Sand-5
(kg/t)
0.15
0.15
Cement
(kg/t)
MOISTURE
(%)
11.6
11.6
WEIGHT
(kg) :
51.78
40.04
TAIL GRADE Au
(g/t) :
0.1
0.17
CALC. HEAD Au
(g/t) :
0.63
0.98
FINAL HEIGHT
(cm) :
98
96.5
MOISTURE (DB)
(%) :
16.61
6.81
79.9
79.9
TAILS
EXTRACTION
% Recovery in charcoal Basis Head Calculated
13.1.1.2 Sample identification

th
The samples were received on May 25 , 2005 and their identification and weight are presented in Table
13-5.
Table 13-5: Identification of samples
Sample identification
Weight, kg
Sandstone sample 250383
91.27
93.92
92.59
Intrusive sample 250386
87.65
Sample # 5
98.90
13.1.1.3 Sample Preparation.

The samples were crushed to 100% minus 1 and screened by mesh , and . Each fraction
was then split by cone and quartered into 2 charges. of the mass split was retained as the sample
reject. The other of the mass was split for chemical assay, bottle test and column tests.
The splits taken for chemical assay were combined, homogenized, and further split into a one kilogram
sample that was pulverized to 100% -100 mesh. The samples for bottle test were crushed to obtain
the require size distribution as it is shown in Figure 13-1.
SGS Canada Inc.
Page 53
Sample
1"
1"
3/4"
1/2"
1/4"
-1/4"
3/4"
1/2"
+1/4"
split
-1/4"
split
split
Chemical assay,
Mineralogy and
Ground Ore Bottle
Test
Chemical assay,
Mineralogy and
Ground Ore Bottle
Test
Coarse Ore Bottle-onRolls Leach Test (1")
Coarse Ore Bottle-onRolls Leach Test (3/4")
Remaining and
Colum Charge
Remaining and
Colum Charge
Chemical assay,
Mineralogy and
Ground Ore Bottle
Test
Remaining and
Colum Charge
Figure 13-1: Sample preparation
SGS Canada Inc.
split
Chemical assay,
Mineralogy and
Ground Ore Bottle
Test
Remaining and
Colum Charge
Page 54
A composite of the sandstone sample plus sample 5 (Sands-5) was prepared; the procedure is shown
in Figure 13-2.
Sample # 5
3/4"
1/2"
+1/4"
-1/4"
22.61
20.78
19.05
21.46
Split
Split
Split
Split
Sample
Reject
Sample
Reject
Sample
Reject
Sample
Sample
Sample
3/4"
1/2"
+1/4"
17.52
17.34
Sample
Sample
Reject
Sample
Reject
Sample
Composite
Total weight
78.90 kg
-1/4"
17.78
Sample
Total weight
83.90 kg
26.26
Sample
Sample
Sample
Reject
Sample
Reject
Sample
Reject
Split
Split
Split
Split
Split
Split
Split
Split
Split
Split
Split
Split
Split
Split
Split
44.20
3/4"
Split
Split
Split
Split
Split
49.42
1/2"
Split
Split
Split
Split
58.7
+1/4"
110.46
-1/4"
Sandstone
Figure 13-2: Sample preparation of composite sand-5
SGS Canada Inc.
Total weight
262.78 Kg
Page 55
13.1.1.4 Sample Characterisation.
13.1.1.4.1 Chemical Analysis

Chemical assays of the head samples are presented in Table 13-6.
Table 13-6: Chemical assay of head samples
Sample
Au, g/t
Ag, g/t
Sandstone 1
Sandstone 2
1.44
1.26
2
3
Average
Sample # 5
Intrusive 1
Intrusive 2
Average
1.35
0.31
0.73
0.71
0.72
2.5
1
1
3
2
Composite Sandstone + Sample # 5
0.78
<1
SO4=, %
S=
S Total, %
0.09
0.03
0.020
0.020
0.05
0.03
0.03
0.050
0.06
0.04
0.017
0.03
The samples present gold values in the range 0.31 g/t to 1.35 g/t with low amounts of silver; the
maximum silver value was 2.5 g/t for the sandstone sample.
ICP scans were performed on the intrusive and Sand-5 samples; the results are presented in Table 13-7.
Arsenic was present in both samples. The intrusive sample contains 2104 ppm As, while the Sand-5
composite contains 492 ppm As.
SGS Canada Inc.
Page 56
Table 13-7: ICP scan of samples
Sample
Unit
Detection
limit
Intrusive
Sample
Unit Detection
Composite
limit
Intrusive Sand+sample
#5
Composite
Sand+sample
#5
Ag ppm
1
6
3
%
Al
0.01
5.78
0.99
As ppm
1
2104
492
Ba ppm
1
21
18
Be ppm
0.5
<0.5
<0.5
Bi ppm
1
1
<1
%
Ca
0.01
<0.01
<0.01
Cd ppm
1
19
4
Co ppm
1
4
3
Cr ppm
1
33
378
Cu %
0.01
0.03
<0.01
Fe %
0.01
11.14
2.63
G
ppm
a
10
22
<10
ppm
Hg
5
<5
<5
In ppm
5
<5
<5
%
K
0.01
0.14
0.03
La ppm
1
7
4
Li ppm
10
24
26
M
%
g
0.01
<0.01
<0.01
*ICP042C Method used for all elements
Mn
Mo
Na
Na
Nb
Ni
P
Pb
S
Sb
Sc
Se
Sn
Sr
Te
Ti
V
Zn
Zr
ppm
ppm
%
%
ppm
ppm
%
ppm
%
ppm
ppm
ppm
ppm
ppm
ppm
%
ppm
ppm
ppm
1
1
1
0.01
1
0.5
0.01
2
0.01
5
1
5
7
3
<1
0.38
21
<0.5
0.02
70
0.05
104
7
6
17
6
<1
0.04
6
179.1
0.02
112
0.04
217
2
<5
10
1
1
0.01
1
1
18
34
10
0.29
38
17
<10
16
3
0.08
8
6
59
18
13.1.1.5 Cyanidation Bottle Tests

Five bottle cyanidation tests were performed on each sample. One of them was conducted for 48 hrs 80%
minus 200 mesh and the other tests were conducted at 100% minus 1, , and for 14 days.
A summary of the cyanidation results is presented in Table 13-8 to Table 13-10 and Figure 13-3. Further
details of each test are presented in Appendix A of the metallurgical report.
The intrusive sample has gold head grades of 0.72 g/ton and 1 g/ton of silver. This sample yields gold
recoveries around 87%. A little improvement in the recovery was obtained when the sample was ground
to 80% minus 200 mesh (90.2%). The average of silver recovery was about 37%, with no relation
between size and recovery. NaCN average consumption of five tests was about 3.2 kg/ton.
The Sand-5 composite head grade is 0.78 g/ton and yields lower recovery than the other sample (around
83%). As was the case with the intrusive sample, recovery is not affected by grinding and most of the
gold dissolution takes place within the first few days.
SGS Canada Inc.
Page 57
Table 13-8: Summary of the cyanidation test results for the intrusive sample

Test N
Recovery, %
Particle size
NaCN
CaO
Au
Ag
100% -1"
3.26
1.54
87.2
45.6
100% -3/4"
2.28
1.97
90.2
45.5
100% -1/2"
2.31
2.20
80.0
30.3
100% -1/4"
5.73
0.79
88.2
31.3
80% -200#
2.22
0.98
93.2
34.2
100
90
80
70
60
50
40
30
20
10
0
7
6
5
4
3
2
1
0
100% -1"
100% -3/4"
100% -1/2"
100% -1/4"
80% -200#
Particle size, mm
Au NaCN CaO
Figure 13-3: Results of the bottle test for the intrusive sample
SGS Canada Inc.
Consumption, kg/Ton
% Au Extraction
Bottle-on-rolls leach Tests Composite Intrusive
Page 58
Table 13-9: Summary of the cyanidation test results for the Sand-5 composite

Test N
Distribution, %
Particle size
NaCN
CaO
Au
Ag
Test N: 6
100% -1"
1.96
1.54
77.9
6.0
Test N: 7
100% -3/4"
1.91
0.52
84.5
21.5
Test N: 8
100% -1/2"
1.43
1.34
87.0
9.7
Test N: 9
100% -1/4"
4.67
0.39
83.8
32.8
Test N: 10
80% -200#
3.43
0.73
84.9
33.8
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
% Au Extraction
86
84
82
80
78
76
74
72
100% -1"
100% -3/4"
Au Extraction
100% -1/2"
100% -1/4"
Particle size, mm
NaCN consumption
Consumption, kg/Ton
Bottle-on-rolls leach Tests Composite Sand-5

88
80% -200#
CaO consumption
Figure 13-4: Results of the bottle test for the Sand-5 sample
13.1.1.6 Cyanidation Columns Tests

Two column cyanidation tests were performed using the intrusive sample and the Sand-5 composite. The
columns were of 1 meter high and 20 cm in diameter and were charged with 100% minus 1 inch ore.
These ores were agglomerated with 0.15 Kg/ton of lime and 2 Kg/ton of cement. The flow-rate for both
columns was 12 L/hr/m 2 of 1 g/L NaCN in a closed circuit with a carbon adsorption column. The pregnant
solutions were passed through a charcoal column to collect the leached gold. The barren solution was
returned to feed the column, but a combination of sodium cyanide and lime were added to adjust solution
strength. Both minerals yielded a 79.9% gold recovery in carbon. The kinetic of gold adsorption in carbon
was very quick in the Sand-5 composite. In two days the solution effluent had a gold concentration of 0.03
ppm. At 5 days the effluent solution of the intrusive sample had a gold concentration of 0.04 ppm. A
SGS Canada Inc.
Page 59
summary of the cyanidation column results is presented in Table 13-10. Further details of each test are
presented in Appendix B of the metallurgical report.
Table 13-10: Summary of cyanidation test results for sample GR-28
Intrusive
Composite
Sand-5
SAMPLE
Units
ORE SIZE
(inches) 100% -1"
100% -1"
ORE WEIGHT
(kg)
52.24
40.06
HEAD GRADE Au
(g/t)
0.72
0.78
HEAD GRADE Ag
(g/t)
2.00
<1
HEIGHT
(cm)
110
110
FLOWRATE
(l/h/m2) 12.2
12.2
NaCN
(g/l)
0.5
0.5
CaO
(kg/t)
0.15
0.15
Cement
(kg/t)
MOISTURE
(%)
11.6
11.6
WEIGHT
(kg) :
51.78
40.04
TAIL GRADE Au
(g/t) :
0.1
0.17
CALC. HEAD Au
(g/t) :
0.63
0.98
FINAL HEIGHT
(cm) :
98
96.5
MOISTURE (DB)
(%) :
16.61
6.81
AGGLOMERATION :
TAILS
EXTRACTION
% Recovery in charcoal Basis Head
79.9
Calculated
SGS Canada Inc.
79.9
Page 60
Conclusion
The 2001-2005 metallurgical testing conclusion is that these ore samples seem amenable to heap
leaching cyanidation. Recovery is little affected by grinding and 84.9% to 90% Au is recovered with the
samples crushed to 80% minus 200 mesh. The column tests done with ore crushed to 1 inch shows a
good gold extraction reaching 79.9 % in a short cyanidation time. It is recommended to perform column
cyanidation tests with coarser samples in the 1-3 inches range.
Arsenic was present in both the intrusive and the composite sample at levels of 2104 g/t and 492 g/t
respectively. The presence of antimony in the 100-200 g/t range was identified. Cyanide consumption is
relatively high considering the low grade of the ore and could be related to the presence of arsenic and
antimony minerals.
No metallurgical testing was done between 2005 and 2014.
In 2014 CDC began acquiring columns in order to conduct tests on site. CDCs intention is to add more
testing facilities and to conduct additional metallurgical testwork in 2015.
SGS Canada Inc.
Page 61
14 Mineral resource estimates

14.1 Introduction
A previous mineral resource estimate was reported by Geoval Peru S.A.C. for the El Toro project effective
November 2012. The present SGS report uses recent drilling and production sample data completed by
the Company through to August 2014. The final database used to produce the mineral resource estimate
totals 52 diamond drillholes, 51 RC holes, and 7 trenches. The database contains information for collars,
surveys, rock types, and analytical results; additionally the database contains 35,940 production samples.
The mineral resource was estimated by the author, Yann Camus, Eng., Geological Engineer for SGS
Geostat. Mr. Camus is a professional engineer registered with the Ordre des Ingnieurs du Qubec
(#125443), Canada. He has been involved in mineral resource estimation work on a continuous basis
since joining SGS Canada Inc. in 2000. Mr. Camus is an independent Qualified Person as per section 1.4
of the NI 43-101 Standards of Disclosure for Mineral Projects.
The mineral resource estimates are derived from a digital resource block model. The construction of the
block model starts with the modeling of 3-dimensional (3-D) wireframe envelopes (solids) of the
mineralization using drill hole analytical data and lithological information. The solids were designed to
extend above the topographic surface.
Following the modelling, analytical data contained within the wireframe solids is normalized by generating
fixed-length composites. The composite data is used to interpolate the grade of blocks regularly spaced
on a defined grid within the 3-D wireframe solids. A Whittle pit generated using cost parameters provided
by CDC was used to constrain the resource. The interpolated blocks located between the topography and
the Whittle pit comprise the mineral resource. An appropriate fixed density based on measured specific
gravities was applied to the oxide zone. The blocks were then classified as measured, indicated, or
inferred based on the spatial distribution of composites used in the estimation. The 3-D wireframe model
was interpreted by SGS Geostat.
14.2 Drill Hole Database

The database used in the resource estimation contains 35,940 blast holes (BH), 586 canals or face
samples (FH), 52 diamond drilling holes (DDH), 51 reverse circulation holes (RC) and 7 trenches (TR)
with 35,940, 586, 4,904, 3,996 and 620 assay samples respectively. A total of 8,122 lithological
descriptions and 178 specific gravity measurements were also included in the database. SGS inspected
the drillhole database. A total of 1,921 assays (including 7 samples above 5 g/t Au) were verified against
the original laboratory assay certificates with no errors found. Examination of duplicate assays (302),
standards (50) and blanks (52) revealed minor variability in the results due to the nugget effect but
otherwise the data is considered to be reliable and suitable for resource estimation.
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Table 14-1: Exploration and production holes summary
Hole Type
Total of Hole Type
Number of Assays
Blast Hole (BH)
35,940
35,940
Face Holes (FH)
586
586
Trench (TR)
620
Diamond drillholes (DDH)
52
4904
RC drillholes (RC)
51
3996
TOTAL
36,636
46,046
Table 14-2: QAQC samples completed by CDC gold
QAQC Sample
Duplicates
(DUP)
Standards
(STD)
Total of
Samples
Hole Type
Company
24
DDH
GEOVAL
28
DDH
CDM
57
BH
CDM
193
FH
CDM
23
DDH
GEOVAL
29
DDH
CDM
24
DDH
GEOVAL
26
DDH
CDC
Blanks (BLK)
TOTAL
404
The drill pattern of El Toro for DDH and RC is fairly regular with 14 vertical holes, 7 dipping between 70
and 80, 81 dipping between 54 and 65 and one dipping at 45. They are oriented at N45 (35), N65 to
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N75 (10), N162 to N166 (17), N195 to N225 (20) and N285 to N345 (7) azimuths. Figure 14-1
displays a plan view of the drill holes at El Toro.
Figure 14-1: Plan view of drillholes (DDH and RC) at the El Toro Project
A study to evaluate a potential bias of the blasthole data was performed prior to using production holes
(BH) or face holes (FH) in the estimation. Pairs of 6 m composites inside DDHs vs BHs were made when
within 6 m. The scatter plot of the 153 paired data is shown in Figure 14-2. The statistics reveal that the
range of DDH composites is greater, and that the average grade is greater for DDH composites but the
median of both populations are similar. As a result of this comparison, SGS believes that high grades are
somewhat lost in BH and that they are therefore conservative.
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100
Au g/t - Production Hole (BH)
10
0.1
0.01
0.01
0.1
10
100
Au g/t - Exploration Holes (DDH only)
Figure 14-2: Scatterplot of paired 6 m composites in DDHs vs BHs
Out of the total 9,520 assays inside DDHs, RCs, or TRs, 4521 assays fall inside the 110 mineralized
intervals representing the resource (explained in the section 14.3). From the total 35,940 BH assays,
32,489 assays fall inside the oxide resource wireframes. These are the assay intervals from the database
that were used for the current mineral resource estimation. Face holes (FHs) were not used because the
closest pairing to other types of assays revealed that they have a high bias. RC and DDH drilling were
highly continuous with a recovery between 95-100% and the trenches were about 72% sampled by
length. The average sample length for the 4,521 assays was 1.79 m long, ranging from 0.1 m to 3.3 m.
Figure 14-3 displays the gold histogram.
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Figure 14-3: Au g/t histogram of 4,521 original assays from the mineralized zones (DDH, RC, TR)
14.3 Geological Interpretation

The ore-shell model was designed by SGS with inspiration from sections from Geoval. After doing gold
statistics on lithologies and alterations, it was decided to use oxides versus sulfides for the ore-shell
model. The grade was also examined in areas with >0.10 g/t.
The methodology for the geological interpretation was:
A total of vertical 25 sections were defined (every 50 m)

Interpretations of zones (oxides versus sulfides) were done on 16 benches with available
production data
Interpretations of zones were done on the 25 sections (with an additional modelling grade of
about 0.1 g/t over 20 m)
Finally, sectional interpretations were linked to form solids.
14.3.1 Definition of Sections

CDC gold is already working with a set of sections typically every 100 m. SGS believes sections every 50
m are necessary considering many drillholes are located on 50 m sections and the geology is quite
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complex. Eventually, sections every 25 m or even 12.5 m or 10 m could be implemented. Sections every
50 m are reasonable with the present drill data. The final set of vertical sections used is visible on Figure
14-4. Section numbers are 4.0, 4.5, 5.0, , 15.5 and 16.0.
S 16.0
S 11.0
S 8.0
S 14.0
S 4.0
Figure 14-4: Location of sections used for the ore-shell model
14.3.2 Interpretation on Benches

The soluble gold is available in the production holes. Sixteen (16) benches were interpreted for oxides
versus sulfides. The average laboratory solubility of gold inside the interpreted sulfide contours is
between 30% and 55%. The interpretation on benches is from elevation 3,439 mZ to 3,529 mZ at every 6
m. Representative benches 3,499 mZ and 3,505 mZ are shown in Figure 14-5 and Figure 14-6.
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Figure 14-5: Modeling of the sulfides on bench 3,499 mZ using solubility from production data
Figure 14-6: Modeling of the sulfides on bench 3505 mZ using solubility from production data
14.3.3 Interpretation on Sections

The information of the sections comes mainly from the 103 diamond and RC drillholes. The interpretation
on section also conforms to the interpretation on production benches. The soluble gold is not available in
diamond and RC drillholes. Therefore the interpretation of geologists is relied upon to trace the limits for
the oxides versus sulfides. The first interpretation is the sulfides limits as shown on Figure 14-7, Figure
14-9 and Figure 14-11. At this point, sulfides are considered as waste because no gold recovery is
foreseen by current process (heap leach cyanidation). The second step of the sectional interpretation was
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the oxides outline as shown on Figure 14-8, Figure 14-10 and Figure 14-12. Oxides must also be over 0.1
g/t in order to be included in the model.
Sulfides
Low Au Solubility in
Production Data
Figure 14-7: Interpretation of sulfides on Section 8.0
Oxides
Sulfides
Oxides
Figure 14-8: Interpretation of oxides and sulfides on Section 8.0
SGS Canada Inc.
Sulfides
Low Au Solubility in
Production Data
Sulfides
Oxides
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Sulfides
Oxides
Sulfides
Oxides
14.3.4 Solids from Sectional Interpretations

In order to convert the sectional interpretation into 3-D volumes, wireframe solids were made from the
sulfide zones and oxide zones. A total of 1 wireframe was created for the oxides and 4 for the sulfides.
We then subtracted the sulfide solids from the oxide zone solid. The final retained wireframe for the
creation of the resource block model is the oxides minus the sulfides. These steps are shown from Figure
14-13 to Figure 14-17.
SGS Canada Inc.
Figure 14-13: Oblique view of the sectional interpretations for the oxides
Figure 14-14: Oblique view of the resulting solid wireframe for the oxides
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Figure 14-15: Oblique view of the sectional interpretations for the sulfides
Figure 14-16: Oblique view of the resulting solid wireframe for the sulfides
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Figure 14-17: Oblique view of the solid wireframes for both the oxides and the sulfides
14.4 Capping and Compositing

Only assays within the final retained oxide wireframe were used for the block model estimation. Each
production hole has one sample representative of its complete length. These lengths go from 0.5 m to 9.5
m but the vast majority (99.2%) is between 3 and 8 m (around 6 m). Exploration holes have samples
within the oxide wireframe between 0.1 and 3.3 m with most (96%) at exactly 1.5 m or 2 m. For the
resource estimation, this data was composited in the following method:
Production assays were kept as is (32,489 assays, around 6 m length, 99.2% from 3 to 8 m)
Composites of 6 m were generated in RC and DDH drillholes (1,343 composites)
In regard to the capping study, the contribution of the highest 1% of Au grades for both production
composites and exploration composites was studied. The 1% highest composites participate to about
17% of the gold content (for both production and exploration data). This is a significant contribution so it is
typically qualified as high risk. When capping composites to 5 g/t, 1% of the production data contributes to
11% of the gold content and 1% of the exploration data contributes to 13% of the gold content, which is
considered a reasonably safe 10% benchmark. At this stage, SGS used 5 g/t Au capping on the
composites and believes it is sufficient. Gold content could be lowered by another 1 or 2% to be more
conservative but it is not required at this time. Proper resource reconciliation with production should help
determine if this capping level should be used in future estimates.
Note that face samples were not used because they were found to have a high bias. The composites are
shown in Figure 14-18. Statistics on composites are outlined in Table 14-3.
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Note : Some composites wrongly appear

to be above topo because of the topo
profile
chosen
for
visualisation.
Composite elevations are correct.
Figure 14-18: Longitudinal view looking northeast displaying all composites used for the estimation
Table 14-3: Composite statistics
Type of
Count
composite
Exploration (DDH+RC) 1,343
Production
32,485
Total
33,828
Min
(m)
4.00
0.50
0.50
Max
(m)
8.00
9.60
9.60
Length Statistics
Count
Count
<3m
>8m
0
0
236
31
236
31
% btw 3
and 8 m
100.0%
99.2%
99.2%
Max
(g/t)
12.53
144.67
144.67
Mean
(g/t)
0.35
0.35
0.35
Au Statistics
Capping Capped
(g/t)
Mean (g/t)
5
0.34
5
0.33
5
0.33
Lost
Au (%)
-4%
-6%
-6%
14.5 Spatial Analysis

Many variograms were estimated on different datasets and in many directions (at least 14). The best
variograms were obtained using exclusively production composites. The result is shown in Figure 14-19.
This variogram was used for the resource estimation.
Very interestingly, the best variograms show the greatest continuities down dip -62 at an azimuth of
203, and horizontal at an azimuth of 113. The equivalent ZXY rotation convention used is an azimuth of
135, dip of -35 and spin of 55. The direction of the best horizontal continuity is shown on bench at
3,499 mZ in Figure 14-20 and the greatest continuity on Section 11.0 is shown in Figure 14-21.
The retained variogram was normalized to a variance of 1 (correlogram) and is presented in Figure 14-19
.
SGS Canada Inc.
Table 14-4: Variogram parameters used in the estimation
Component
Sill
Nugget
Ranges (m)
Long
Medium
Short
0.45
NA
NA
NA
Spherical
0.31
13
13
Spherical
0.24
100
100
40
Figure 14-19: The best variogram produced using production composites alone
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Best continuity (azi 113)
Figure 14-20: Best continuity shown on bench 3,499 mZ with production drillholes
Oxides
Oxides
Best continuity (apparent

dip of -60)
Sulfides
Figure 14-21: Best continuity shown on Section 11.0 with production and exploration drillholes
14.6 Resource Block Modeling

A block size of 6 m (X) by 6 m (Y) by 6 m (Z) was selected for the mineral resource block model based on
drill hole spacing, general geometry, and extent of mineralization. The bench height is also always 6 m
with no exception. The typical production drilling pattern is 4.5 x 4.5 m. The resource block model filling
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the wireframe solid contains 316,502 blocks, 231,683 of which have their centers below the topographic
3
surface for a total volume of 50,043,528 m .
14.7 Grade Interpolation Methodology

Grades for the El Toro mineral resource block model were estimated using the Ordinary Kriging (OK)
methodology with search ellipsoid orientation based on variography. The ellipsoids all have an azimuth of
135 degrees, a dip of -35 degrees and a spin of 55 degrees. Limits were set for the minimum and
maximum number of composites used per interpolation pass and restrictions were applied to the
maximum number of composites used from each hole. For the first two passes there were restrictions for
the number of composites per octant of the search ellipsoid. Nearest neighbour and inverse squared
distance were tested and global results are similar, including global results at various COGs.
The interpolation process was conducted using 3 passes with relaxed search conditions (see Table 14-5)
to allow a total of 206,187 blocks (beneath the topography) to be interpolated (11% were not estimated).
st
The search ellipsoids are as follow: 1 pass 50 m (long axis) by 50 m (intermediate axis) by 30 m (short
nd
rd
axis), 2 pass and 3 pass 80 m by 80 m by 55 m. Search conditions were defined as follow: 1st pass
minimum of 13 composite and a maximum of 13 composites with a maximum of 4 composites selected
from each hole (so minimum 4 holes) and a maximum of 3 composites per octant (so minimum 5 octants),
2nd pass minimum of 12 composites, maximum of 13 and restricted to 4 per hole (so minimum 3 holes)
with a maximum of 3 composites per octant (so minimum 4 octants) and the 3rd pass minimum of 4
composites, maximum 13 limited to maximum 4 per hole with no octant restrictions (so can be estimated
from data from a single hole). Figure 14-22 shows the histogram of blocks.
Table 14-5: Search parameters for each of the 3 estimation passes
Ellipsoid Parameters
Pass
Minimum #
of
Composites
Maximum #
of
Composites
Maximum
composites
per Drillhole
Minimum
# of
Octants
X (m)
Y (m)
Z (m)
50
50
30
13
13
80
80
55
12
13
80
80
55
13
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Figure 14-22: Histogram of estimated capped gold in block model (one max grade at 2.93 g/t)
14.8 Density
A total of 178 density measurements (specific gravity) were done on various oxidized rock types by
Cambior in 2005. An additional 112 measurements were done on different reduced (sulfides) rock types.
These additional measurements were not used since sulfides are currently not considered resources. The
variability of the 178 measurements is somewhat low with averages for each of the 6 oxidized rock types
3
3
3
between 2.17 t/m and 2.59 t/m . When the 25 most extreme individual values (from 1.53 t/m to 2.69
t/m 3) are removed from the data set, the averages for each of the 6 oxidized rock types improves to
3
between 2.23 t/m and 2.59 t/m . The average of the 6 densities is 2.5 t/m and it was decided to use this
value for the resource estimation. Results are presented in Table 14-6.
Table 14-6: Density statistics (t/m3)
Rock
Code
Porphyric dacite
IHD
Brecciated porphyric dacite IHDB
Sandstone
SD
Cracked sandstone
SDCR
Brecciated sandstone
SDB
Siltstone
SS
ALL
Lithology
Measurements
Density
Count St. Dev.
2.17
30
0.23
2.41
29
0.17
2.59
30
0.02
2.57
30
0.05
2.51
30
0.08
2.46
29
0.15
2.45
178
SGS Canada Inc.
Outliers removed
Density
Count St. Dev.
2.24
16
0.07
2.47
21
0.09
2.59
30
0.02
2.57
30
0.05
2.51
30
0.08
2.47
26
0.09
2.50
153
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14.9 Mineral Resource Classification

The mineral resources at CDC have all been classified as measured, indicated and inferred categories as
defined by NI 43-101 standards and CIM definitions:
Mineral Resource
Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated
and Measured categories. An Inferred Mineral Resource has the lowest level of confidence followed by
the Indicated Mineral Resource, and the highest level of confidence is the Measured Mineral Resource.
A Mineral Resource is a concentration or occurrence of diamonds, natural solid inorganic material, or
natural solid fossilized organic material including base and precious metals, coal, and industrial minerals
in or on the Earths crust in such form and quantity and of such a grade or quality that it has reasonable
prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity
of a Mineral Resource are known, estimated or interpreted from specific geological evidence and
knowledge.
The term Mineral Resource covers mineralization and natural material of intrinsic economic interest which
has been identified and estimated through exploration and sampling and within which Mineral Reserves
may subsequently be defined by the consideration and application of technical, economic, legal,
environmental, socio-economic and governmental factors. The phrase reasonable prospects for
economic extraction implies a judgement by the Qualified Person in respect of the technical and
economic factors likely to influence the prospect of economic extraction. A Mineral Resource is an
inventory of mineralization that under realistically assumed and justifiable technical and economic
conditions might become economically extractable. These assumptions must be presented explicitly in
both public and technical reports.
Inferred Mineral Resource
An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality
can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but
not verified in terms of geological and grade continuity. The estimate is based on limited information and
sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes.
Due to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be assumed that all
or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral
Resource as a result of continued exploration. Confidence in the estimate is insufficient to allow the
meaningful application of technical and economic parameters or to enable an evaluation of economic
viability worthy of public disclosure. Inferred Mineral Resources must be excluded from estimates forming
the basis of feasibility or other economic studies.
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Indicated Mineral Resource

An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality,
densities, shape and physical characteristics can be estimated with a level of confidence sufficient to
allow the appropriate application of technical and economic parameters, to support mine planning and
evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable
exploration and testing information gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade
continuity to be reasonably assumed.
Mineralization may be classified as an Indicated Mineral Resource by the Qualified Person when the
nature, quality, quantity and distribution of data are such as to allow confident interpretation of the
geological framework and to reasonably assume the continuity of mineralization. The Qualified Person
must recognize the importance of the Indicated Mineral Resource category to the advancement of the
feasibility of the project. An Indicated Mineral Resource estimate is of sufficient quality to support a
Preliminary Feasibility Study which can serve as the basis for major development decisions.
Measured Mineral Resource
A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality,
densities, shape, and physical characteristics are so well established that they can be estimated with
confidence sufficient to allow the appropriate application of technical and economic parameters, to
support production planning and evaluation of the economic viability of the deposit. The estimate is based
on detailed and reliable exploration, sampling and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced
closely enough to confirm both geological and grade continuity.
Mineralization or other natural material of economic interest may be classified as a Measured Mineral
Resource by the Qualified Person when the nature, quality, quantity and distribution of data are such that
the tonnage and grade of the mineralization can be estimated to within close limits and that variation from
the estimate would not significantly affect potential economic viability. This category requires a high level
of confidence in, and understanding of, the geology and controls of the mineral deposit.
It was determined that the estimated blocks from passes 1, 2 and 3 respectively correspond to measured,
indicated and inferred categories based on data density and a strong understanding of the geology.. The
approximate minimum drilling grid that corresponds to estimation pass 1 and measured resources is 35
m. The approximate minimum drilling grid that corresponds to estimation pass 2 and indicated resources
is 55 m. The inferred resources minimum drilling grid is about 100 m. Figure 14-25 shows the classified
blocks in the open pit section.
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14.10 Whittle Pit Optimization to Constrain Resources

In order to pass the NI 43-101 criteria of reasonable prospects for economic extraction, the resource
either has to:
be over an economically reasonable cut-off grade for underground extraction or
be over an economically reasonable cut-off grade for open pit extraction and be inside an
economically reasonable optimized open pit shell
Current grades in the El Toro Project are seldom over an economically reasonable cut-off grade for
underground extraction. The current production plan is exclusively for open pit mining, therefore an
economically reasonable open pit shell was optimized by SGS for this mandate.
The optimization was prepared using the Lerchs-Grossman 3-D routine in Gems Whittle (LG 3D). The
basic optimization principle of the algorithm operates on a net value calculation for each block in the
model. In other words, revenue from sales less total operating cost including mining, processing, and
general and administration costs. This optimization outlines an open-pit shell that generates the maximum
economic value.
All classes of resources were considered (measured, indicated and inferred) to drive the pit optimizer for
this level of study.
The optimization parameters were provided by CDC. They are judged to be reasonable by SGS for this
level of study. The economic and operating parameters used in the initial optimization are given in Table
14-7. The optimized pit shell is shown in Figure 14-23 and Figure 14-24. The total depth of 300 m is from
the highest blocks of the resource to the bottom of the pit.
Table 14-7: Open pit optimization parameters
Optimization Parameters
Slope Angle
Ore Mining Cost
Waste Mining Cost
Mining Dilution
Processing Cost
G&A Cost
Ore Mining Increment Cost
Total Ore Based Cost
Processing Recovery
Gold Price
Resulting Cut-off Grade
Value
45.0
1.52
1.34
10.00
1.22
1.61
0.18
3.01
50.00
1,256
0.16
SGS Canada Inc.
Unit
degrees
US$/t mined
US$/t mined
%
US$/t treated
US$/t treated
US$/t treated
US$/t treated
%
US$/oz
Au g/t
Open Pit
Section
Figure 14-23: Plan view of the optimized pit shell
Figure 14-24: View in 3-D of optimized pit shell
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Figure 14-25: Optimized open pit section showing the block classification and topography
14.11 Base Case Mineral Resource Estimates

The open pit optimization parameters resulted in an economical marginal cut-off grade (COG) of 0.16 g/t
Au, which was used as the cut-off base case for the resources. The base case resource table is shown in
Table 14-8.
Table 14-8: Base case mineral resource estimates for the El Toro Project (all oxides no sulfides)
Category
Measured
Tonnage
(t)
5,660,000
Au Grade
(g/t)
0.36
Au
Ounces
65,000
Indicated
19,060,000
0.45
276,000
24,720,000
0.43
340,000
Inferred
25,460,000
0.49
398,000
Cut-off grade is 0.16 g/t Au

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14.12 Sensitivity Analysis

In order to verify the sensitivity of the resource to variations of the COG, SGS has produced resources at
COGs of 0.16 (base case), 0.2, 0.3 and 0.5 g/t Au. The constraining pit shell remained the same through
the exercise. The different COG resources are presented in Table 14-9.
Table 14-9: Mineral resource estimates at varying cut-off grades (all oxides no sulfides)
COG
(g/t Au)
Tonnage
(t)
5,660,000
Au Grade
(g/t)
0.36
Au
Ounces
65,000
19,060,000
0.45
276,000
24,720,000
0.43
340,000
Inferred
25,460,000
0.49
398,000
Measured
4,420,000
0.41
58,000
Indicated
17,230,000
0.48
265,000
21,650,000
0.46
320,000
Inferred
23,320,000
0.51
386,000
Measured
2,440,000
0.54
42,000
Indicated
13,070,000
0.55
232,000
15,510,000
0.55
270,000
Inferred
Category
Measured
0.16
0.2
0.3
0.5
Indicated
18,440,000
0.58
347,000
Measured
1,070,000
0.74
26,000
Indicated
6,660,000
0.70
151,000
7,740,000
0.71
180,000
Inferred
9,570,000
0.77
235,000

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450,000
0.90
400,000
0.80
350,000
0.70
300,000
0.60
250,000
0.50
200,000
0.40
150,000
0.30
100,000
0.20
50,000
0.10
Gold Grade (g/t)
Total Gold Ounces
Measured Au (oz)
Indicated Au (oz)
Inferred Au (oz)
Meas. Au (g/t)
Ind. Au (g/t)
Inf. Au (g/t)
0.16
0.2
0.3
0.5
Gold Cut-off Grade (g/t)
Figure 14-26: Comparison of mineral resource estimates at varying cut-off grades
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15 Mineral Reserve Estimates

The El Toro project has been in operation since 2012 and continues to produce, however reserves have
not been estimated by SGS at this time. SGS recommends that this subject be covered in the next NI 43101 technical report for this project.
CDC gold currently holds a mine plan for the following year based on the previous non NI 43-101 resource
estimate done by Geoval.
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16 Mining Methods
The project is currently in operation. The mining methods section is an item typically covered in a technical
report for advanced projects in more detail. The mandate given to SGS was limited to a technical resource
report. It is the first step towards a full technical report. SGS recommends that this subject be covered in
the next NI 43-101 technical report for this project.
The current mining method by CDC gold is exclusively by open pit. Artisanal miners are currently mining
outside the open pit by adits on the northwest side of El Toro Mountain. SGS recommends that this
subject be covered in the next NI 43-101 technical report for this project.
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17 Recovery Methods
The project is currently in operation. The recovery methods section is an item typically covered in a
technical report for advanced projects in more detail. The mandate given to SGS was limited to a technical
resource report. It is the first step towards a full technical report. SGS recommends that this subject be
covered in the next NI 43-101 technical report for this project.
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18 Project Infrastructure
The project is currently in operation. The project infrastructure section is an item typically covered in a
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19 Market Studies and Contracts

The project is currently in operation. The market studies and contracts section is an item typically covered
in a technical report for advanced projects in more detail. The mandate given to SGS was limited to a
technical resource report. It is the first step towards a full technical report. SGS recommends that this
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20 Environmental Studies, Permitting and Social or Community

Impact
The project is currently in operation. The environmental studies, permitting and social or community
impact section is an item typically covered in a technical report for advanced projects in more detail. The
mandate given to SGS was limited to a technical resource report. It is the first step towards a full technical
report. SGS recommends that this subject be covered in the next NI 43-101 technical report for this
project.
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21 Capital and Operating Costs

The project is currently in operation. The capital and operating costs section is an item typically covered in
a technical report for advanced projects in more detail. The mandate given to SGS was limited to a
technical resource report. It is the first step towards a full technical report. SGS recommends that this
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Page 93
22 Economic Analysis
The project is currently in operation. The economic analysis section is an item typically covered in a
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23 Adjacent Properties
The El Toro gold Project is located in a recognized Mining District of the La Libertad Region (Figure 23-1).
This gold zone hosts a number of world class and medium size gold mines and projects including:
Minera San Simon SACs La Virgen Mine (2013 production: approximately 60,000 ounces of
gold);
Rio Alto's La Arena Project (measured and indicated resources of 2.4 million ounces of gold plus
inferred resources of 1.6 million ounces of gold);
Barrick Gold's Lagunas Norte Mine (2013 production: 606,000 ounces of gold).
Figure 23-1: Map of adjacent gold deposits (Rio Alto Mining Limited)
23.1 Epithermal Gold Deposits in Sedimentary Rocks

23.1.1 La Virgen Deposit
La Virgen gold deposit is located in the district of Cachicadan within the province of Santiago de Chuco, in
the region of La Libertad. La Virgen is a high sulfidation epithermal gold deposit situated in a transitional
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tectonic setting in the cordillera in northwestern Peru. The deposit is hosted by sedimentary rocks of the
Chim Formation, which can be divided into three levels:
A first lower level consisting of alternating quartzite and siltstones;
A second, thicker level of quartzites and sandstones containing economic mineralization,
And a third level of fine grained siltstone.
The intrusive rocks outcrop in the north and south of Suro River and the east side of the property. Au
mineralization is associated with intensely silicified and clay-altered sandstones, quartzites and volcanic
rocks. In brecciated areas, Au is associated with oxidized iron minerals such as hematite, jarosite and
goethite. The ore bearing minerals are pyrite, enargite, chalcopyrite, cassiterite and tetrahedrite.
Mineralization is associated with rocks of the middle Miocene, which is dominated by block faulting that
formed the Alum Fault trending N - S and Escalerilla Fault trending NE - SW. The Alum Fault is the most
important structure in the economic sense; it consists of a wide fault zone that forms the western edge of
the volcanic rocks and truncates the Mesozoic stratigraphy.
The San Simon mining company owns the La Virgen deposit and began operations in June 2003. The
deposit is being open-pit mined at a rate of 40,000 tonnes per day and the processing is done in sodium
cyanide leaching pads.
The deposit is part of the "Gold Corridor", a regional structural network that hosts large, scattered deposits
of high grade gold such as El Alto Chicama, La Arena, Santa Rosa and others. The area was subject to
intense oxidation, which can be easily leached and provide recoveries of at least 70%, as metallurgical
tests have shown.
23.1.2 La Arena Deposit

The La Arena Deposit is located on the eastern flank of the Andean Western Cordillera in northern Peru.
The area is underlain by sediments of the Mesozoic West Peruvian Basin which were folded and faulted
during Cenozoic deformation.
The regional stratigraphy (Table 23-1) at outcrop level is dominated by the folded Upper Jurassic
(Chicama Formation) to the Lower Cretaceous (Goyllarisquizga Group), which are mainly siliciclastic
sediments, with lesser amounts of younger Lower-to-Upper-Cretaceous carbonate sediments occupying
the cores of synclines. West of La Arena, the Cretaceous sediments are unconformably overlain by the
Cenozoic volcanics of the Calipuy Group. The regional stratigraphical column is summarised in Table
23-1.
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Table 23-1: Regional stratigraphic column of La Arena and surrounding areas 3
Erathem
System
Quaternary
Cenozoic
Recent
Alluvial, Fluvial
Extrusive
Lithology
Q-al/Q-fl
Pleistocene
Glacial, Lacustrine
Q-gl/Q-la
Series
Neogene
Group
Calipuy
Paleogene
Upper
Mesozoic
Cretaceous
Formation
Pn-ca
Yumagual
Lower
Jurassic
Upper
AC
Ks-yu
Pariatambo
Ki-pa
Chulec
Ki-chu
Inca
Ki-In
Farrat
Ki-fa
Carhuaz
Ki-ca
Santa
Ki-sa
Chimu
Ki-chi
Goyllarisquizga
Gold
Mineralisation
Oyn
Ki-o
Chicama
Js-ch
S
AC, ET, LA, LV,
SR
after Reyes R. L, 1980 and Navarro et. al. 2010). Gold mineralization: AC: Lagunas Norte, ET: El Toro, LA: La
Arena, LV: La Virgen, S: Shahuindo, SR: Santa Rosa
The La Arena Project is located within a regional fold and thrust belt of predominantly Mesozoic
sedimentary rocks. The sediments consist of a lower, shallow-marine-todeltaic, siliciclastic sequence
followed by an upper, carbonate-dominated succession, all of Lower Cretaceous age. The oldest rocks
exposed in the cores of anticlines are thinly bedded and laminated mudstones, minor siltstones and fine
grained sandstones with occasional coal seams which make up the upper Jurassic Chicama Formation
and the basal, Lower Cretaceous Oyon Formation.
Overlying the Oyon Formation is the mainly arenaceous Chim Formation. The Chimu Formation, the
principal host rock for epithermal gold at La Arena (and elsewhere in the region), has been sub-divided
into the three mapable members described below (from oldest to youngest):
The Transition Member (130 m) consists of laminated fine-to-medium grained sandstones

intercalated with siltstones and mudstones, and is a transitional facies between the more shaly
Oyon Formation and the more sandy Lower Member of the Chim Formation.
The Lower Member (125 m) consists of thickly bedded and compact medium-to-coarse grained
sandstones which, due to their brittle nature, are fractured and often brecciated, and constitute the
principal sedimentary host rock at La Arena. In addition to hosting the La Arena high-sulphidation
after Reyes R. L, 1980 and Navarro et. al. 2010). Gold mineralization: AC: Lagunas Norte, ET: El Toro, LA: La Arena, LV: La Virgen, S:
Shahuindo, SR: Santa Rosa
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Au mineralization, the Chim Formation also hosts similar mineralization at Lagunas Norte, El
Toro, La Virgen and Santa Rosa.
The Upper Member (150 m) consists of a mixed sequence of coarse-grained sandstones,

laminated siltstones and carbonaceous mudstones.
23.1.3 Lagunas Norte- Barrick Gold Corp.

The regional geology of the Alto Chicama area is dominated by a thick sequence of folded and thrusted
Mesozoic marine clastic and carbonate sedimentary rocks, and andesitic and dacitic volcanic rocks of the
Tertiary Calipuy Group. The Mesozoic sequence is unconformably overlain by the Tertiary group and cut
by numerous small intrusive bodies. The sequence has been afffected by at least one or two stages of
compressive deformation during Andean orogenesis. Most of the Lagunas Norte deposit is contained in
the oxide breccias, with a small amound of sulfides. Some of the sulfide material overlies oxide
mineralization on the western side of the deposit.
Table 23-2: Barricks Reserve/Resources-2013
Contained Reserves & Resources
Commodity Contained As of Date
Gold 4,617,000 (oz)
12/31/2013
Silver 16,325,000 (oz)
12/31/2013
Table 23-3: Epithermal gold deposits in the La Libertad Region gold zone (from SNL web site)
Property
Owner
Status
Commodity(s)
Primery
Reserves &
Resources
La Virgen
Compaia San
Simon S.A.
Operating
Gold, Copper
360,000 (oz)
414
12/05/2005
La Arena
Rio Alto Mining

Ltd.
Operating
Gold, Copper,
Silver,
Molybdenium
5,274,000 (oz)
18,127.10
01/01/2014
Lagunas Norte
Barrick Gold
Corp.
Operating
Gold, Silver
4,617,000 (oz)
5,587.10
12/31/2013
SGS Canada Inc.
Reserves &
Total In
Resources as of
Situ Value
Date
Page 98
24 Other Relevant Data and Information

SGS is unaware of any other relevant data or information that could affect the conclusions of this report.
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25 Interpretation and Conclusions

The gold mineralization identified in El Toro deposit is of type of high sulfidation epithermal in clastic
sedimentary rocks, such as sandstones and quartzites of the Chimu Formation.
Drilling to date in the El Toro project identified a mineralized body of oxides of 1.2 km long, up to 500 m
wide and up to 350 m thick. All current resources are in a continuous body with grades mostly between
0.1 and 1.0 g/t Au.
The current mining is by open pit blast and truck and process is by heap leach with a recovery of about
50%.
SGS reviewed the project data and drillhole database, visited the project site, and inspected recent drill
hole core.
The database used in the resource estimation contains 35,940 blast holes (BH), 586 canals or face
samples (FH), 52 diamond drilling holes (DDH), 51 reverse circulation holes (RC) and 7 trenches (TR)
with 35,940, 586, 4904, 3996 and 620 assay samples respectively. Examination of duplicate assays,
standards and blanks revealed some normal variability given the mineralization type. The data is
considered to be reliable and suitable for the resource estimation.
The optimized open pit constrained mineral resource for the El Toro Project at a base case cut-off grade
of 0.16 g/t gold totals 5.66 million tonnes at 0.36 g/t gold of measured resource, 19.06 million tonnes at
0.45 g/t gold of indicated resource and 25.46 million tonnes at 0.49 g/t gold of inferred resource. This
base-case cut-off grade was chosen from reasonable economical parameters derived from the 2014 life of
mine and using a gold price of 1256 US$/oz.
The resource seems promising for the continuation of the current operation. Recommendations are listed
in the next item.
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26 Recommendations
The El Toro property is promising. After more than 3 years of production with no exploration during that
time, resources should still stand for multiple years. Continued exploration work is warranted in order to
replace and possibly contribute to current resources. Continued definition drilling and technicaleconomical studies are also warranted since measured and indicated resources are currently somewhat
limited.
Recommendations Regarding the Next Resource Update
Prior to a resource update, it is recommended that CDC completes the following actions :
o
o
Drill holes to better define a minimum of the next year or two of production.
Re-log and re-assay of available core from the Cambior diamond drilling to compensate
for the lack of QA/QC, analyze for soluble gold and also to have a more homogeneous
lithology, alteration and mineralization logging in the database.
Recommendations to realize an advanced NI 43-101 technical report
Since this NI 43-101 resource technical report includes most of the parts of an advanced technical
report, costs will be significantly reduced.
The budget estimation for the completion of a complete report (including resource update) is of
$ 180,000 USD.
General Recommendations
Current geology and technical team working at the El Toro operation should continue to study and
model the geology in order to understand how to better manage the production, the exploration
and also the resource estimation.
During exploration drilling, the QA/QC procedures should continue as done by CDM in 2013.
Verification of the documents and on site implementation by a QP will ensure procedures follow
industry standards to support future estimates and reports.
Repeats of whole sample batches should be requested from the laboratory if:
A blank QA/QC sample returns more than 0.1 g/t Au
One QA/QC standard failure is noticed
Two QA/QC standard warnings are noticed
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Option : Recommended Drilling to Extend Resources and Possibly Increase Open Pit Size and Resulting
Profitability
Areas with exploration potential that could materially affect the optimized open pit shell (see
Figure 26-1 to Figure 26-3). Areas with poor gold are sub-economical, some gold is slightly
sub-economical, good gold is sufficient for modelling and estimation and NA have laboratory
results missing from the database.
In order to drill potential areas visible in Figure 26-1, the recommended length of each drill hole
should be around 140 m on a drill grid of about 50 m x 100 m which delineates inferred resources.
According to the total size of the area with potential, it is recommended to have about 40
drillholes. The total meters drilled would therefore be about 5,600 m of drilling or a budget of
$ 1,000,000 USD. Drilling some of these holes in reverse circulation (RC) could reduce the budget
along with some of the time required to drill the 40 drillholes.
In order to drill additional potential areas visible in Figure 26-3, the recommended length of each
drill hole should be around 400 m. According to the total size of the area with potential, it is
recommended to complete 8 drillholes initially. The total meters drilled would therefore be about
3,200 m of drilling or a budget of $ 575,000 USD.
Figure 26-1: Plan view with oxide body in red and potential areas for exploration in grey
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Figure 26-2: Plan view of optimized pit shell and next figure section location
Figure 26-3: Section of block model (black is not estimated), potential areas for exploration in grey
Optional : Recommendations Regarding the Exploration and Drilling of New Resources on the Property
(No budget)
Additional geophysics on the El Toro property is warranted. The principal actions could be to:
Extend the deposit with resources.
Find new targets for eventual drilling and resource development.
The El Toro property merits continued exploration work. Additional exploration drilling is therefore clearly
warranted on the Property.
While it was not in the current mandate, SGS noticed that process recoveries are not close to initial
testwork, a series of recommendations are listed here (No budget)
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CDC should continue the construction of the metallurgical on site facility in order to do more tests.
A composite sample should be sent for gold mineralogy for metallurgical applications to better
understand how to unlock the gold from the ore. More testing may be advisable given the
complicated geological nature of the deposit but each sample requires a budget of about $ 9,000
USD.
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27 References
CDC Gold Corp., Acero. W, 2014, Reporte Tcnico El Toro V1.
CDC Gold Corp., Bartra, J., 2014, Marco Geolgico El Toro.
Corbett, G.J. 2002a, Epithermal Gold for Explorationists: AIG Presidents Lecture, AIG on Line Journal
April 2002.
Corbett, G.J., and Leach, T.M., 1998. Southwest Pacific rim gold-copper systems: structure, alteration,
and mineralization: Economic Geology, Special Publication 6, 234 p. Society of Economic Geologists.
GEOVAL MINING, 2012, Mina El Toro, Estimacin de Recursos y Clculos Preliminar de Reservas
Minables 2012.
Heald, P., Foley, N.K., and Hayba, D.O., 1987, Comparative anatomy of volcanic hosted epithermal
deposits: acid-sulfate and adularia-sericite types: Economic Geology, v. 82, p. 1-26.
Hedenquist, J.W., and Lowenstern, J.B., 1994, The role of magmas in the formation of hydrothermal ore
deposits: Nature, v. 370, p. 519-527.
INGEMMET, 2007, Potential Evaluation of the Mineral Deposits in the La Libertad and Ancash Regions,
North Peru.
KIRK MINING CONSULTANTS (KMO), 2011, La Arena Project, Peru, Technical Report NI 43-101.
ROSCOE POSTLE ASSOCIATES INC. (RPA), 2012, Technical Report on the Lagunas Norte Mine, La
Libertad Region, Peru.
Shanks III, W.C. Pat, 2012, Hydrothermal alteration in volcanogenic massive sulfide occurrence model:
U.S. Geological Survey Scientific Investigations Report 20105070 C, chap. 11, 12 p.
STONECAP SECURITIES, 2010, Treasure of the Andes- Initiating Coverage, Rio Alto Mining Limited, La
Arena Deposit.
27.1 Web and Databases References

http://www.aig.asn.au/
http://www.minem.gob.pe/minem/archivos/file/dgaam/publicaciones/evats/moche/moche3.pdf
http://www.myweather2.com/City-Town/Peru/Huamachuco/climate-profile.aspx
http://en.climate-data.org/location/718553/
http://www.rioaltomining.com/projects/la_arena/facts/
https://www.snl.com/
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28 Certificates of Qualified Persons

I, Yann Camus, do hereby certify that:
a) I am project engineer with SGS Canada Inc. - Geostat with an office at 10 Blvd de la Seigneurie
East, Suite 203, Blainville, Quebec, Canada, J7C 3V5;
b) This certificate applies to the report entitled NI 43-101 Resources Technical Report
Corporacin del Centro S.A.C., Peru with effective October 28, 2014.
c) I am a graduate from cole Polytechnique de Montral in 2000. I am an engineer and a registered
member of the Ordre des Ingnieurs du Quebec (#125443). I have worked as a geological
engineer continuously since my graduation from university. My technical expertise includes
resources evaluation. I have been involved in several resource, pre-feasibility and feasibility
studies as well as preliminary economic assessments. I have participated in worldwide projects in
rare and base metals, rare earths, iron, bauxite and industrial minerals, including hard rock,
detritic and oxidized environments. I certify that by reason of my education, affiliation with a
professional association and past relevant work experience, I fulfill the requirements to be a
"qualified person" for the purposes of NI 43-101;
d) I have visited the Property from October 28 to 30 of 2014 to meet technical personnel, discuss all
technical subjects covered in this report, to verify drillhole locations and inspect the area;
e) I am responsible for the entirety of the Report;
f) I am independent of the issuer as described in section 1.5 of Regulation NI 43-101.
g) I have never been involved previously on work related to the mineral property subject of the
Report;
h) I have read Regulation NI 43-101 and the Report and certify that the Report has been prepared in
compliance with the Regulation.
i)
At the date of the Report, to the best of my knowledge, information and belief, the Report contains
all scientific and technical information that is required to be disclosed to make the Report not
misleading;
Blainville, February 27, 2015
Original Signed and Sealed

Yann Camus, Eng.
OIQ # 125443
SGS Canada Inc.

NI 43-101 Resources Technical Report El Toro Gold Project - Corporación Del Centro SAC - Perú

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NI 43-101 Resources Technical Report

El Toro Gold Project

Respectfully submitted to:

By: SGS Canada Inc.

Effective Date: October 28, 2014

DATE AND SIGNATURE PAGE

(Original copy signed and sealed)

Yann Camus, Eng.

SGS Canada Inc.

Geology and Mineralization

SGS Canada Inc.

Site Visit and Data Verification

Mineral Resource Estimate

SGS Canada Inc.

Cut-off grade is 0.16 g/t Au

Mineral Reserves, Mining, Processing, Infrastructures, Environmental, Costs

Drillholes to better define a minimum of the next year or two of production.

Recommendations to realize an advanced NI 43-101 technical report

A blank QA/QC sample returns more than 0.1 g/t Au

One QA/QC standard failure is noticed

Two QA/QC standard warnings are noticed

SGS Canada Inc.

SGS Canada Inc.

Extend the deposit with resources.

Find new targets for eventual drilling and resource development.

SGS Canada Inc.

General Information ....................................................................................................... iv

Geology and Mineralization ........................................................................................... iv

Metallurgical Testwork .................................................................................................... v

Site Visit and Data Verification........................................................................................ v

Mineral Resource Estimate............................................................................................. v

1.7 Mineral Reserves, Mining, Processing, Infrastructures, Environmental, Costs and

Terms of Reference ........................................................................................................ 1

Currency, Units, Abbreviations and Definitions ............................................................... 1

NI 43-101 Disclosure ...................................................................................................... 2

Reliance on Other Experts ...................................................................................... 3

Property Description and Location ........................................................................ 4

Environmental Liabilities ................................................................................................. 6

Accessibility, Climate, Local Resources, Infrastructure and Physiography ...... 7

Local Resources and Infrastructure ................................................................................ 8

Surface Rights .............................................................................................................. 10

Prior Ownership of the Property and Ownership Changes ............................................ 11

Past Mineral Exploration Work...................................................................................... 11

Geological Setting and Mineralization ................................................................. 14

Regional Geology ......................................................................................................... 14

Lithology and Stratigraphy ............................................................................................ 18

Deposit type ........................................................................................................... 23

Deposit Summary ......................................................................................................... 23

SGS Canada Inc.

Epithermal Deposits ..................................................................................................... 23

Geological Characteristics ............................................................................................ 24

Mineralized High Sulfidation Systems ........................................................................... 26

High Sulfidation Type .................................................................................................................. 24

Photogrammetric restitution ........................................................................................................ 30

Oromin- Barrick Gold ................................................................................................. 32

Carlos Daz Marios (CDM)....................................................................................... 33

Sample preparation, Analyses and security..................................................... 34

Sample Preparation ................................................................................................... 34

Laboratory Certification ............................................................................................................... 34

Quality Control and Quality Assurance Programs ...................................................... 36

Data verification .................................................................................................. 46

Site Visit .................................................................................................................... 47

Standard Verification of the Geological Database...................................................... 48