Shahuindo Technical Report 2015

Technica
al Report on the Shahuindo

o Mine
Cajab
bamba, Pe
eru
Prepared
dby:
CarlE.Defilippi,SSMERegiste
eredMembeerKappes,Cassiday&Associates
Charle
esV.Muerh
hoff,SMERe
egisteredMeemberTah
hoeResourccesInc.
TimW
Williams,FAu
usIMMTahoeResourccesInc.

Janu
uary25,20166
DATE AND SIGNATURE PAGE
The authors of this report, Technical Report on the Shahuindo Mine, Cajabamba, Peru, are Qualified
Persons as defined by Canadian National Instrument 43-101. The effective date of this report is 01
January 2016. The effective date of the Mineral Resource estimate is 15 April 2015. The effective date
of the Mineral Reserve estimate is 01 November 2015. The report was completed and signed on 25
January 2016.
Signed this 25th day of January, 2016
/s/ Carl E. Defilippi

Carl E. Defilippi, M.Sc., C.E.M.
SME Registered Member 775870RM
Project Manager
Kappes, Cassiday & Associates
/s/ Charles V. Muerhoff

Charles V. Muerhoff, B.Sc.
SME Registered Member 4182272RM
Vice President Technical Services
Tahoe Resources Inc.
/s/ Tim Williams

Tim Williams, M.Sc.
FAusIMM
Vice President Operations & Peru Country Manager
Tahoe Resources Inc.
Shahuindo Mine, Peru
NI 43-101 Technical Rep
port
CONT
TENTS
LIST OF
F FIGURES ....................
. ........................................................................................................ XI
LIST OF
F TABLES ............................................................................................................................. XIV
1.0 EXECUTIVE
E E SUMMAR
RY....................................................................................................... 1
1.1 Introductio
on .......................................................................................................................... 1
1.2 Principal Findings.................................................................................................................. 1
1.3 Property Description
D and
a Locatio
on .................................................................................. 3
1.4 Mineral Tenure ..................................................................................................................... 3
1.5 Permits ................................................................................................................................... 3
1.6 Environme
ent ......................................................................................................................... 4
1.7 History .................................................................................................................................... 4
1.8 Geology an
nd Mineraliz
zation ................................................................................................ 4
1.9 Drilling .................................................................................................................................... 5
1.10 Sample Pre
eparation an
nd Analysis ..................................................................................... 5
1.11 Data Verification................................................................................................................... 6
1.12 Mineral Pro
ocessing and
d Metallurg
gical Testing
g ................................................................ 6
1.13 Mineral Resource and Mineral Reserve Estim
mates ......................................................... 7
1.13..1 Mineral Resources.................................................... .................................................................................. 8
1.13..2 Mineral Reserve Estimate ...................................... .................................................................................. 9
1.14 Mining Metthod and Miine Producttion Schedu
ule .............................................................. 9
1.15 Processing............................................................................................................................. 11
1.16 Infrastructu
ure ...................................................................................................................... 12
1.17 Mine Closu
ure ....................................................................................................................... 12
1.18 Capital and
d Operating
g Costs ............................................................................................ 13
1.18..1 Operatiing Costs ....................................................... ................................................................................ 13
1.18..2 Capital Costs ............................................................. ................................................................................ 13
1.18..3 Financiaal Analysis ...................................................... ................................................................................ 14
1.19 Exploration
n Status .............................................................................................................. 15
1.20 Conclusion
ns and Recom
mmendatio
ons ............................................................................... 15
2.0 IN
NTRODUCTION ................................................................................................................. 17
2.1 Purpose an
nd Basis of Report
R ............................................................................................. 17
2.2 Sources of Information
n ..................................................................................................... 17
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port
2.3 Qualified Persons

P and Site Visits...................................................................................... 18
2.4 Effective Dates .................................................................................................................... 18
2.5 Units of Me
easurementts ..................................................................................................... 19
2.6 Abbreviatio
ons and Acrronyms ........................................................................................... 19
3.0 RELIANCE
R ON
O OTHER
R EXPERTS
S ................................................................................... 21
4.0 PROPERTY
P DESCRIPT
TION AND LOCATION
L N ............................................................. 22
4.1 Location ................................................................................................................................ 22
4.2 Mineral Tenure and Title .................................................................................................. 22
4.3 Surface Rig
ghts ..................................................................................................................... 25
4.4 Informal Mining
M Activiity ................................................................................................... 25
4.5 Environme
ental Consid
derations ......................................................................................... 26
4.5.1 Environmental Regullations .................................... ................................................................................ 26
4.6 Permits ................................................................................................................................. 27
4.6.1 Environmental Laws ........................
. ........................ ................................................................................ 29
4.6.2
2 a Processinng Activities .......................................................... 30
Mine Deevelopment, Exploitation and
4.6.3
3 on ................... ................................................................................ 30
Mine Cllosure and Sitte Remediatio
4.6.4
4 Existingg Environmenttal Condition
ns ..................... ................................................................................ 30
4.7 Royalties, Taxes
T and Fees
F ................................................................................................. 30
4.7.1 Mainten
nance Fees ..................................................... ................................................................................ 30
2
4.7.2 Minimum
m Production
n Obligation ......................... ................................................................................ 31
4.7.3
3 Royaltiees, OSINERGMIN Contrib
bution and OEEFA Contribuution .............................................. 31
4.7.4
4 Ownersship of Miningg Rights ................................. ................................................................................ 32
4.7.5
5 Taxation and Foreign
n Exchange Controls
C ......... ................................................................................ 33
4.7.6
6 Workerr Participation
n ............................................. ................................................................................ 33
4.7.7
7 Regulato
ory and Supeervisory Bodiees .................... ................................................................................ 34
4.8 Risks that may
m affect Access,
A Title
e, or the Rig
ght or Abiliity to Perforrm Work ....... 34
5.0 ACCESSIBIL
A LITY, CLIM MATE, LOCAL RESO OURCES, IINFRASTRU UCTURE A AND
PHYSIO
OGRAPHY .............................................................................................................................. 36
5.1 Accessibilitty ......................................................................................................................... 36
5.2 Climate ................................................................................................................................. 37
5.3 Local Resources & Infrrastructure ................................................................................... 37
5.4 Physiograp
phy ....................................................................................................................... 38
5.5 Seismology
y .......................................................................................................................... 39
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5.6 Population Centers............................................................................................................. 39

5.7 Local Infrasstructure an
nd Services ................................................................................... 40
6.0 HISTORY
H ................................................................................................................................ 42
6.1 Ownership
p History ............................................................................................................. 42
6.2 Exploration
n History ............................................................................................................ 42
6.3 Historical Mineral
M Ressource and Mineral
M Resserve Estima
ates .................................... 44
6.3.1 Pre-NI 43-101
4 Minerral Resource Estimates ..... ................................................................................ 44
2
6.3.2 Prior NI 43-101 Mineral Resourcee Estimates... ................................................................................ 45
6.3.3
3 Prior NI 43-101 Mineral Reserve Estimates ..... ................................................................................ 49
6.4 Historical Production
P ....................
. .................................................................................... 51
7.0 GEOLOGICA
G AL SETTIN
NG AND MINERALIZA
ATION .................................................... 52
7.1 Regional Geology ................................................................................................................ 52
7.2 Project Geology .................................................................................................................. 56
7.3 Mineralizattion ..................................................................................................................... 65
7.4 Structural Geology ............................................................................................................. 66
7.5 mal Alterattion ................................................................................................. 69
Hydrotherm
7.6 Geometallu
urgy .................................................................................................................... 73
8.0 DEPOSIT
D TY
YPES .................................................................................................................. 74
8.1 Deposit Ty
ypes ..................................................................................................................... 74
9.0 EXPLORAT
E ION .................................................................................................................... 76
9.1 n Strategy .......................................................................................................... 76
Exploration
9.2 Geophysica
al Surveys ........................................................................................................... 76
9.3 Geochemisstry ...................................................................................................................... 79
10.0 DRILLING
D ............................................................................................................................... 81
10.1 Introductio
on ........................................................................................................................ 81
10.2 Drilling Me
ethods and Equipment
E ....................
. ................................................................ 83
10.3 Collar Surv
veys ..................................................................................................................... 84
10.4 Downhole Surveys .............................................................................................................. 85
10.5 Drill Loggin
ng ........................................................................................................................ 86
10.6 Drill Datab
base ..................................................................................................................... 86
10.7 Core Recov
very .................................................................................................................... 86
10.8 Compariso
on of Core and
a Reverse
e Circulation
n Drilling ................................................ 87
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10.9 Tahoe 2015

5 Drill Prog
gram ................................................................................................ 89
10.9..1 Infill Drrilling................................................................ ................................................................................ 91
10.9..2 ut Drilling ...................................................... ................................................................................ 91
Step-Ou
10.9..3 Exploraation ................................................................ ................................................................................ 91
10.9..4 Other Drilling
D ............................................................ ................................................................................ 91
11.0 SAMPLE PREPARATIO

ON, ANALY
YSES AND S
SECURITY ........................................... 93
11.1 Drill Sampling ..................................................................................................................... 93
11.1..1 nd Drill Core Sampling .............................. ................................................................................ 93
Diamon
11.1..2 Reversee Circulation Chip Samplin
ng..................... ................................................................................ 93
11.1..3 Sample Storage.......................................................... ................................................................................ 95
11.2 Sample Pre
eparation an
nd Analysis ................................................................................... 95
11.2..1 Atimmssa ...................................................................... ................................................................................ 95
11.2..2 Asarco .........................
. ................................................ ................................................................................ 95
11.2..3 Southerrn Peru ........................................................... ................................................................................ 96
11.2..4 Sulliden ........................................................................ ................................................................................ 96
11.2..5 Rio Alto
o ...................................................................... ................................................................................ 97
11.3 Bulk Densitty Determin
nations ........................................................................................... 97
11.4 Sample Sec
curity .................................................................................................................. 98
11.5 Quality Asssurance/Quality Contro
ol ................................................................................ 98
11.5..1 Asarco .........................
. ................................................ ................................................................................ 98
11.5..2 Other Drilling
D Progrrams Prior to Sulliden ........ ................................................................................ 98
11.5..3 Sulliden ........................................................................ ................................................................................ 98
11.5..4 Rio Alto
o ...................................................................... ..............................................................................100
11.5..5 Blanks ........................................................................... ..............................................................................100
11.5..6 Field Du
uplicates......................................................... ..............................................................................101
11.5..7 Standards .................................................................... ..............................................................................103
11.6 Summary Statement
S ........................................................................................................ 106
12.0 DATA
D VERIFICATION ..................................................................................................... 107
12.1 Met-Chem 2003/2004 Audit ........................................................................................... 107
12.2 AMEC 2009 Database Audit and Verification
V n............................................................. 107
12.3 MDA 2012 Database Audit
A ............................................................................................. 107
12.4 Tahoe 2015
5 Database Audit ........................................................................................... 108
12.5 Statement on Data Ve
erification ..................................................................................... 108
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13.0 MINERAL
M PR
ROCESSING AND ME
ETALLURG ICAL TEST
TING ................................. 109
13.1 Metallurgic
cal Testing Summary
S ..................................................................................... 109
13.2 Pre-2014 Metallurgica
M l Test Summ
mary ......................................................................... 111
13.2..1 Heap Leeach Consultaants Test Pro
ogram ............. ..............................................................................111
13.2..2 2009 to
o 2012 Kappes, Cassiday & Associates T
Test Program
m ....................................................112
13.3 2014 Kappe
es, Cassiday
y & Associattes Test Pro
ogram................................................... 116
13.4 2014 and 2015 Test Prrograms ........................................................................................ 116
13.4..1 o, Tahoe Resources and SGS Column LLeach Tests.........................................................116
Rio Alto
13.4..2 Discussion on the Reesults of the Rio Alto and SGS Columnn Leach Testss ............................121
13.4..3 SGS Botttle Roll Testts ............................................. ..............................................................................123
13.4..4 bility Tests ............................ ..............................................................................124
Compaccted Permeab
13.5 Estimated Field Recov
veries, Leach Times and
d Reagent R
Requiremen
nts ................. 127
13.5..1 ROM Fiield Design Paarameters............................. ..............................................................................127
13.5..2 Primaryy Crushed Orre Field Desiggn Parameterss ............................................................................130
13.6 Recommen
ndations and
d Conclusio
ons ............................................................................. 133
14.0 MINERAL
M RESOURCES
S ESTIMAT
TE .............................................................................. 135
14.1 Introductio
on ...................................................................................................................... 135
14.2 Database ............................................................................................................................. 135
14.3 Geological Modeling ......................................................................................................... 137
14.3..1 Lithologgic Domains .................................................. ..............................................................................137
14.3..2 Structurral Domains .................................................. ..............................................................................138
14.3..3 Oxidation Domains.................................................. ..............................................................................139
14.4 Grade Estim
mation Dom
mains ............................................................................................ 139
14.4..1 Gold Esstimation Dom
mains ..................................... ..............................................................................139
14.4..2 Silver Esstimation Do
omains .................................... ..............................................................................143
14.4..3 Other Estimation
E Do
omains ................................... ..............................................................................143
14.4..4 Sample Selection and
d Compositin
ng ..................... ..............................................................................143
14.5 Statistics ............................................................................................................................. 144
14.5..1 Bulk Deensity .............................................................. ..............................................................................144
14.5..2 Gold Sttatistics ........................................................... ..............................................................................144
14.5..3 Silver Sttatistics .......................................................... ..............................................................................147
14.5..4 Minor Elements
E ......................................................... ..............................................................................149
14.6 Variograph
hy ....................................................................................................................... 151
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14.7 Block Mode

elling................................................................................................................. 152
14.8 Grade Estim
mation ............................................................................................................. 154
14.9 Mineral Resources ............................................................................................................ 157
14.9..1 Mineral Resource Deefinitions ............................... ..............................................................................157
14.9..2 Shahuindo Mineral Resources
R .............................. ..............................................................................158
14.10 Resource Model
M Check
ks .................................................................................................. 162
0.1 Composites vs Modeel Grades .............................. ..............................................................................162
14.10
14.10
0.2 Nearestt Neighbor Check
C Estimatte ..................... ..............................................................................163
14.10
0.3 Visual Comparisons
C ........................
. ........................ ..............................................................................165
14.10
0.4 Additional Informatio
on and Discussion .............. ..............................................................................165
15.0 MINERAL
M RESERVE ES
STIMATES.................................................................................... 169
15.1 Mineral Reserves ............................................................................................................... 169
15.1..1 Mineral Reserve Deffinitions ................................. ..............................................................................169
15.1..2 Shahuindo Mineral Reserves
R ................................. ..............................................................................170
15.2 Cut-off Gra
ade .................................................................................................................... 171
15.3 Assumptions and Para
ameters ........................................................................................ 172
15.4 Dilution ............................................................................................................................... 173
15.5 Pit Optimiz
zation ............................................................................................................... 173
15.6 Pit Optimiz
zation Resu
ults ................................................................................................. 174
16.0 MINING
M ME
ETHODS ........................................................................................................... 177
16.1 Geotechnic
cal ..................................................................................................................... 177
16.2 Hydrogeolo
ogy and Hyd
drology......................................................................................... 179
16.3 Mine Layou
ut....................................................................................................................... 181
16.4 Mining ................................................................................................................................. 183
16.5 Pit Design ....................
. ...................................................................................................... 185
16.5..1 Bench Height
H ............................................................. ..............................................................................185
16.5..2 Final Pitt Design.......................................................... ..............................................................................185
16.5..3 Comparrison of Final Pit Design to
o the Optimuum Whittle shhell ...............................................185
16.6 In-pit Inferred Resourc
ces ................................................................................................ 187
16.7 Mine Produ
uction Sche
edule .............................................................................................. 187
16.7..1 Initial Mining
M Strategyy: Phase 1 ............................. ..............................................................................187
16.7..2 Mining Strategy:
S Phasse 2 ........................................ ..............................................................................188
16.7..3 Mining Schedule
S ........................................................ ..............................................................................189
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16.8 Mining Equ

uipment ............................................................................................................ 191
17.0 RECOVERY
R METHODS
S .................................................................................................... 194
17.1 Phase 1 - Run
R of Mine Processing....................
. .............................................................. 194
17.1..1 Processsing Flow Path
h Run of Miine Material .. ..............................................................................194
17.1..2 Run of Mine
M Leach Process
P ................................... ..............................................................................197
17.1..3 Processs Plant ............................................................. ..............................................................................198
17.2 Phase 2 Crushing
C and Agglomerration ....................................................................... 199
17.2..1 Processs and Flow Paath ........................................... ..............................................................................199
17.2..2 Processs Plant ............................................................. ..............................................................................202
17.3 Heap Leach
h Pad Desig
gn by Andde
es .............................................................................. 202
17.4 Phase 1 and
d 2 Process Parameterrs ............................................................................... 203
18.0 PROJECT
P IN
NFRASTRUCTURE ........................................................................................ 204
18.1 Services an
nd Infrastruc
cture ............................................................................................ 204
18.1..1 Roads ............................................................................ ..............................................................................204
18.1..2 Power Supply
S ............................................................. ..............................................................................205
18.1..3 Water Supply
S ............................................................ ..............................................................................206
18.1..4 Sewage System .......................................................... ..............................................................................206
18.1..5 Solid Waste
W Disposaal.............................................. ..............................................................................207
18.2 Project Buiildings ............................................................................................................... 207
18.2..1 Truck Shop
S ................................................................ ..............................................................................207
18.2..2 Explosivve Magazine................................................... ..............................................................................207
18.2..3 Wareho
ouse and Proccess Maintenaance ............... ..............................................................................208
18.2..4 Fuel Staations .............................................................. ..............................................................................208
18.2..5 Offices .........................
. ................................................ ..............................................................................208
18.2..6 Constru
uction and Operations Camps ................ ..............................................................................208
18.2..7 Dining Facilities
F ......................................................... ..............................................................................209
18.3 Miscellaneo
ous Site Serrvices ............................................................................................ 209
18.3..1 Laborattory ................................................................. ..............................................................................209
18.3..2 Securityy ....................................................................... ..............................................................................209
18.3..3 Medical Center/Cliniic............................................. ..............................................................................209
18.3..4 Commu
unications....................................................... ..............................................................................210
19.0 MARKET
M ST
TUDIES AN
ND CONTRA
ACTS ....................................................................... 211
19.1 Metal Conttracts ................................................................................................................ 211
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19.2 Mining Allia

ance.................................................................................................................. 211
20.0 ENVIRONM
E ENTAL ST TUDIES, PE ERMITTING G AND SO OCIAL OR R COMMUN NITY
IMPACTT ............................................................................................................................................ 213
20.1 Environme
ental Management Plan
n................................................................................. 213
20.2 Environme
ental Studiess .................................................................................................... 213
20.2..1 Environmental Impacct Statement ........................ ..............................................................................213
20.2..2 Geocheemical Characcterization............................. ..............................................................................214
20.2..3 Site Mo
onitoring ......................................................... ..............................................................................218
20.2..4 Closuree Plan .............................................................. ..............................................................................218
20.2..5 Existingg Environmenttal Condition
ns ..................... ..............................................................................220
20.3 Permits ............................................................................................................................... 220
20.3..1 Exploraation ................................................................ ..............................................................................220
20.3..2 Mine Co
onstruction and
a Operation
ns.................... ..............................................................................221
20.4 Social Impa
act..................................................................................................................... 223
20.4..1 Location of the Study Area ................................... ..............................................................................223
20.4..2 Social Baseline
B Studyy............................................... ..............................................................................223
20.4..3 Public Consultation
C and
a Engagemeent Plan ......... ..............................................................................225
20.4..4 Commu
unity Develop
pment Prograam ................... ..............................................................................225
21.0 CAPITAL
C AND OPERA
ATING COS
STS ........................................................................... 227
21.1 Capital Cosst Estimate ..................................................................................................... 227
21.1..1 List of Areas
A .............................................................. ..............................................................................227
21.1..2 Basis off Estimate ....................................................... ..............................................................................227
21.1..3 Capital Estimate ........................................................ ..............................................................................227
21.2 Operating Cost Estimate ................................................................................................ 228
22.0 ECONOMIC
E C ANALYSIS
S ................................................................................................... 230
22.1 Mine Produ
uction Statistics .............................................................................................. 230
22.2 Process Pla
ant Producttion Statistic
cs .............................................................................. 230
22.3 Capital Exp
penditures ........................................................................................................ 231
22.3..1 Project Capital .......................................................... ..............................................................................231
22.3..2 Sustaining Capital...................................................... ..............................................................................231
22.3..3 Workin
ng Capital ....................................................... ..............................................................................231
22.4 Salvage Value .................................................................................................................... 232
22.5 Revenue .............................................................................................................................. 232
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22.6 Shipping an
nd Refining ....................
. .................................................................................. 232
22.7 Operating Costs ................................................................................................................ 232
22.8 Total Cash Cost ................................................................................................................ 233
22.8..1 Workerr Profit Sharee and other production taxxes ........................................................................233
22.8..2 Reclamaation and Clo
osure ...................................... ..............................................................................233
22.8..3 Depreciation .............................................................. ..............................................................................233
22.8..4 Taxation ...................................................................... ..............................................................................233
22.9 Project Fin
nancing .............................................................................................................. 234
22.10 Net Income After Tax
x..................................................................................................... 234
22.11 NPV and IR
RR ..................................................................................................................... 234
22.12 Sensitivitie
es........................................................................................................................ 234
22.13 Shahuindo Financial Model
M ............................................................................................. 236
23.0 ADJACENT
A PROPERTIIES ................................................................................................ 240
24.0 OTHER
O REL
LEVANT DA
ATA AND INFORMAT
I TION .................................................... 241
24.1 Constructio
on and Miniing Activitie
es through 0
01 January 2
2016.................................. 241
24.1..1 Constru
uction ............................................................. ..............................................................................241
24.1..2 Mine an
nd Plant Commissioning ............................ ..............................................................................250
24.2 Exploration
n Potential ....................
. .................................................................................. 253
24.2..1 San Lorrenzo and Choloque .................................. ..............................................................................253
24.2..2 Shahuindo Southeastt Extension an
nd El Sauce ... ..............................................................................256
24.2..3 u porphyry ........................... ..............................................................................257
La Chilcca Baja Cu-Au
24.2..4 La Chilcca Alta ............................................................ ..............................................................................257
24.2..5 Azules ........................................................................... ..............................................................................258
24.2..6 Algamarrca Au-Ag-Cu
u Vein system
m ...................... ..............................................................................260
24.2..7 Canteraa ....................................................................... ..............................................................................262
24.2..8 Malvas ........................................................................... ..............................................................................263
25.0 IN
NTERPRET
TATION AN
ND CONCL
LUSIONS .................................................................. 264
26.0 RECOMMEN
R NDATIONS
S..................................................................................................... 266
27.0 REFERENCE
R ES ...................................................................................................................... 269
28.0 AUTHORS
A CERTIFICA
C ATES ............................................................................................. 273
28.1 Certificate of Qualified
d Person Carl
C E. Defiilippi ...................................................... 274
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d Person Charles
C V. M
Muerhoff .............................................. 275
d Person Tim
T William
ms ......................................................... 276
Appenndix
Post-R
Resource Drill Intercep
pts
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LIST OF
O FIGU
URES
Figure 4.1-1 Shahuiindo Project Location Map
p ...................... ................................................................................ 22
Figure 4.2
2-1 Mineraal Claim Locaation Map .............................. ................................................................................ 24
Figure 5.1-1 Shahuiindo Road Ro
oute from Caajamarca ......... ................................................................................ 36
Figure 7.1-1 Shahuiindo Regionall Geology.............................. ................................................................................ 54
Figure 7.1-2 Shahuiindo Regionall Cross Sectio
on ................... ................................................................................ 55
2-1
Figure 7.2 Shahuiindo Local Geeology.................................... ................................................................................ 57
Figure 7.2
2-2 Local Stratigraphic
S Column for the
t Carhuaz/FFarrat Formaations ............................................. 58
Figure 7.2
2-3 Multip
phase Intrusion Crosscuttin
ng Sedimentaary Rocks (Section E1100) .............................. 61
Figure 7.2
2-4 Multip
phase Intrusion Crosscuttin
ng the Sedimeentary Rockss (Section X-X
X) ......................... 62
Figure 7.2
2-5 Sedimeentological Feeatures for Determining
D Sttratigraphic SSequencing ................................... 63
Figure 7.2
2-6 Intrusiive Relationsh
hips ......................................... ................................................................................ 64
Figure 7.2
2-7 Monollithic-Clast Brreccia ..................................... ................................................................................ 65
Figure 7.4
4-1 Combined Structurre and Mineraalization Map - Shahuindo Project ......................................... 68
Figure 7.5
5-1 p. ............................................. ................................................................................ 70
Jarositte in Outcrop
Figure 7.5
5-2 Hydro
othermal Alteration Section Shahuindo
o Project (Seection E1100) .............................. 71
Figure 7.5
5-3 Hydro
othermal Alteration Section Shahuindo
o Project (Seection XX) ................................... 72
Figure 8.1-1 Spatiall Relationship
p of Intermediate Sulfidatio
on Deposits........................................................... 75
2-1
Figure 9.2 Shahuiindo Magneetic Survey Reesults .............. ................................................................................ 77
Figure 9.2
2-2 Shahuiindo IP Survvey Results ........................... ................................................................................ 78
Figure 9.3
3-1 Shahuiindo Rock Geochemistry
G y...................... ................................................................................ 79
Figure 10..1-1 Shahuiindo Drill Ho
ole Location Map
M ................. ................................................................................ 82
Figure 10..8-1 Comparative Plot of
o Core and RC
R Gold Assaays........................................................................... 88
Figure 10..8-2 Comparison of RC to RC+DDH
H Model Estim
mates ...................................................................... 89
Figure 10..9-1 Post-R
Resource Drillling......................................... ................................................................................ 90
Figure 11..5-1 Blank Analyses
A 2015 Drill Prograam .................. ............................................................................. 101
Figure 11..5-2 Field Duplicates
D 2015 RC Drill Program
P - All Au Grade Ranges .......................................... 102
P - All Ag Grade Raanges .......................................... 102
P - Auu Grade Rangee 0.1g/t to 0.3g/t .................... 103
Figure 11..5-5 Chart of Au Analysses of Standarrd 05 .............. ............................................................................. 104
Figure 11..5-6 Chart of Au Analysses of Standarrd 54 .............. ............................................................................. 104
Figure 11..5-7 Chart of Ag Analyses of Standarrd 06 ............... ............................................................................. 105
Figure 11..5-8 Chart of Ag Analyses of Standarrd 54 ............... ............................................................................. 105
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Figure 13..1-1 Locatio

on of Metallu
urgical Drill Holes
H ............... ............................................................................. 110
Figure 13..4-1 Permeeability Rate and
a Fines Con
ntent at Vario
ous Simulatedd Heap Heights ........................ 126
Figure 13..4-2 Permeeability Rate and
a Rock Typ
pe at Various Simulated Heeap Heights ............................... 126
Figure 14..2-1 Plan Projection Dissplaying Zones of Infill Drillling at 25m x 25m Spacingg .......................... 136
Figure 14..3-1 Litholo
ogic Domainss Section E4
400 .................. ............................................................................. 138
Figure 14..3-2 Plan Projection of Structural
S Do
omains ............ ............................................................................. 139
Figure 14..4-1 Au Intterpretation - Southern Do
omains (Crosss Section E12200) ............................................ 141
Figure 14..4-2 Au Intterpretation - Northern Domains
D (Cro ss Section E4400) ............................................. 142
Figure 14..5-1 Gold statistics
s plotss for all domaains ................. ............................................................................. 145
Figure 14..5-2 Silver statistics plotts for all domains ................ ............................................................................. 147
Figure 14..6-1 Horizo
ontal Variograam Fan for Gold
G Domain 1001.................................................................... 151
Figure 14..6-2 Varioggrams of Samp
ples Along Strike ................ ............................................................................. 152
Figure 14..10-1 Inversee Distance (ID
D3) vs Nearest Neighbor EEstimate by EEasting ........................................ 164
D3) vs Nearest Neighbor EEstimate by N
Northing .................................... 164
D3) vs Nearest Neighbor EEstimates by Elevation................................... 164
Figure 14..10-4 Shahuiindo Resourcce Model (Secction 500N) .. ............................................................................. 167
Figure 14..10-5 Shahuiindo Resourcce Model - Section 1100N ............................................................................. 168
Figure 15..6-1 Graph of Whittle Results
R .................................... ............................................................................. 174
Figure 15..6-2 Plan off Whittle Sheell 36 ....................................... ............................................................................. 176
Figure 16..1-1 Geoteechnical Zonee Areas ................................... ............................................................................. 179
Figure 16..3-1 Shahuiindo Mine Layyout Plan .............................. ............................................................................. 183
Figure 16..5-1 LOM Pit
P Design ...................................................... ............................................................................. 186
Figure 16..7-1 Site Plan at the end
d of 2017 ............................... ............................................................................. 188
Figure 16..7-2 Final Phase
P 2 Site Plan
P .......................................... ............................................................................. 189
Figure 17..1-1 ROM Process Flow
w Sheet ................................... ............................................................................. 196
Figure 17..2-1 Crushing, Stockpilee, Screening and Agglomerration Flow Shheet ............................................ 200
Figure 17..2-2 Overlaand Conveyor and Stacking System Flow
w Sheet .............................................................. 201
Figure 18..1-1 Mine Access
A Road.................................................. ............................................................................. 205
Figure 20..2-1 Annuaal Distribution
n of Extracted
d GEU ........... ............................................................................. 217
Figure 20..4-1 Locatio
on of Direct Influence Areea .................... ............................................................................. 224
Figure 24..1-1 Accesss Road Impro
ovements ............................... ............................................................................. 241
Figure 24..1-2 Waterr Storage Pon
nd ............................................ ............................................................................. 242
Figure 24..1-3 Haul Road
R Constru
uction ..................................... ............................................................................. 242
Figure 24..1-4 New Camp
C under Construction
C n ....................... ............................................................................. 243
P
Pagexii

port
Figure 24..1-5 Sewage Treatment Plant under Construction

C n ............................................................................ 243
Figure 24..1-6 Emulsiion Silo ........................................................... ............................................................................. 244
Figure 24..1-7 orary Workshop under Construction .. ............................................................................. 245
Tempo
Figure 24..1-8 onstruction .......................... ............................................................................. 245
Fuel Faarm under Co
Figure 24..1-9 Leach Pad 1A undeer Constructio
on ................... ............................................................................. 246
Figure 24..1-10 Leach Pad 1A comp
pleted with Collection
C Pip ing ....................................................................... 246
Figure 24..1-11 Leach Pad 1A with Overliner Beeing Placed .... ............................................................................. 247
Figure 24..1-12 Lime Storage
S Shed ........................
. ........................ ............................................................................. 247
Figure 24..1-13 ADR Plant
P ................................................................ ............................................................................. 248
ond .................................................................. ............................................................................. 248
Figure 24..1-14 PLS Po
Figure 24..1-15 ADR Plant
P and PLS Pond .................................... ............................................................................. 248
Figure 24..1-16 Leach Pad 2B Foundation and Su
ub-Drain Excaavation ................................................................ 249
Figure 24..1-17 Leach Pad 2B Foundation Consttruction ......... ............................................................................. 250
Figure 24..1-18 Schem
matic of Starteer Pit, ROM Pad
P and Haul Roads ................................................................. 251
Figure 24..1-19 Overvview of Starteer Pit, ROM Pad
P and Haul Roads ................................................................. 251
Figure 24..1-20 Initial Drill Pattern Novemberr 2015 ............. ............................................................................. 252
Figure 24..1-21 Ore Place on Pad 1A Decemb
ber 2015 ........ ............................................................................. 252
Figure 24..1-22 Pad 1A
A Irrigation Commissionin
C g Decembeer 2015 ............................................................... 252
Figure 24..2-1 Major Exploration Targets
T aroun
nd the Shahu indo Project ...................................................... 253
Figure 24..2-2 San Lo
orenzo and Choloque Drill Hole Locati on Map............................................................... 255
Figure 24..2-3 Azuless Drill Hole Location
L Map ........................ ............................................................................. 260
Figure 24..2-4 Algamarca Sample Location
L Map
p (4 and 5 Levvels) ..................................................................... 261
Figure 24..2-5 Algamarca Descu
ubridora Vein on Levels 4 aand 5 ................................................................... 262
Paagexiii

port
LIST OF
O TABL
LES
Table 1.12
2-1 Metallurgical Test Results
R ................................... .................................................................................. 7
Table 1.13
3-1 Shahuiindo Mineral Resources ............................ .................................................................................. 8
Table 1.13
3-2 Shahuiindo Mineral Reserve ................................ .................................................................................. 9
Table 1.14
4-1 Life off Mine Mining Schedule.............................. ................................................................................ 10
Table 1.15
5-1 Processsing Design Parameters
P ........................... ................................................................................ 11
Table 1.15
5-2 Life off Mine Processs Plant Throu
ughput ........... ................................................................................ 12
Table 1.18
8-1 Operaating Cost Sum
mmary ................................... ................................................................................ 13
Table 1.18
8-2 Projecct Capital ........................................................ ................................................................................ 13
Table 1.18
8-3 Sensitiivity Analysis NPV and IR
RR after Taxees ............................................................................ 14
Table 2.3--1 Qualifiied Persons Site Visits an
nd Report Reesponsibilitiess ...................................................... 18
Table 2.6--1 List off Abbreviation
ns ............................................ ................................................................................ 20
Table 4.2--1 Mineraal Title Summ
mary ........................................ ................................................................................ 23
Table 4.5--1 Summary of Environmental Requ
uirements forr Mining Exploration Programs ..................... 27
Table 4.6--1 List off Permits and Status ................................... ................................................................................ 28
Table 4.7--1 Corpo
orate Income Tax ....................................... ................................................................................ 33
Table 5.5--1 Summary of PGA Values
V for Diff
fferent Returnn Periods ............................................................... 39
Table 6.2--1 Summary of Prior Exploration
E Activities
A on tthe Shahuindo
o Property .................................... 43
Table 6.2--2 Summary of Sulliden Exploration
n Activities .... ................................................................................ 44
Table 6.3--1 Pre-NI 43-101 Mineeral Resourcee Estimates ... ................................................................................ 45
Table 6.3--2 Prior NI
N 43-101 Mineral Resourrce Estimate SSummary ............................................................... 45
Table 6.3--3 2004 Mineral
M Resou
urce Estimatee ...................... ................................................................................ 46
M Resou
urce Estimatee ...................... ................................................................................ 46
M Resou
urce Estimatee ...................... ................................................................................ 47
M Resou
urce Estimatee ...................... ................................................................................ 48
M Resou
urce Estimatee ...................... ................................................................................ 49
Table 6.3--8 2012 Pit
P Optimizatiion Parameteers ................... ................................................................................ 50
M Reserrve Estimate ......................... ................................................................................ 51
Table 7.1--1 Shahuiindo Regionall Stratigraphicc Column ...... ................................................................................ 52
Table 10.1-1 Shahuiindo Drilling Summary
S .............................. ................................................................................ 81
8-1
Table 10.8 Core and
a RC Gold Analyses .............................. ................................................................................ 87
Table 10.9
9-1 Post-R
Resource Drillling......................................... ................................................................................ 90
Table 11.5
5-1 Summary of QAQC
C Program Ap
pplicable for 2015 Resourrce Estimate............................... 100
Paagexiv

port
Table 11.5
5-2 Summary of Analysis of Standard
ds Used in 20015 Drill Proggram ........................................... 103
Table 13.1-1 de and Flotatiion Testing Programs on SShahuindo........................................................... 109
Cyanid
Table 13.1-2 Metallurgical Test Work
W Resultss....................... ............................................................................. 110
Table 13.2
2-1 Summary of HLC Column
C Leach
h Tests ........... ............................................................................. 111
Table 13.2
2-2 Summary of KCA Column
C Leach
h Tests .......... ............................................................................. 113
Table 13.2
2-3 Summary of KCA Bottle
B Roll Leeach Tests .................................................................................. 114
Table 13.4
4-1 Rock Type
T Summarry ............................................ ............................................................................. 117
Table 13.4
4-2 Rio Alto Column Leach Test Reesults on Surfaace Samples....................................................... 118
Table 13.4
4-3 Rio Alto Column Leach Test Reesults on Drilll Core Compposites ........................................ 119
Table 13.4
4-4 SGS Column
C Leach
h Test Resultss ....................... ............................................................................. 120
Table 13.4
4-5 SGS an
nd Rio Alto Column
C Leach
h Test Result s by Size and Rock Type............................... 122
Table 13.4
4-6 Summary of SGS 72
2-hour Bottlee Roll Tests ... ............................................................................. 123
Table 13.4
4-7 Coppeer, Iron, Arsenic and Sulfurr Levels in th e SGS Compposites ......................................... 124
Table 13.4
4-8 Compacted Permeaability Test Results
R ............. ............................................................................. 125
Table 13.5
5-1 KCA Oxide
O Ore Paarameters - No
N Permeabillity or Fines M
Migration Issuues ...................... 128
Table 13.5
5-2 Colum
mn Test Resullts Used in Esstimating Fieldd Design Critteria ............................................ 129
Table 13.5
5-3 KCA Oxide
O Ore Recommendattion - Crushe d to p80 (60m
mm - 85mm rrange) ................ 131
Table 13.5
5-4 Test Results
R Used to
t Determinee Field Param
meters on Coaarse Crushed
d Ore.................. 132
Table 14.2
2-1 Grid Transformatio
T on Applied to
o Collar Data in Database. .................................................... 135
Table 14.5
5-1 Descriiptive Statisticcs of Shahuindo Density V
Values by Rocck Type ....................................... 144
Table 14.5
5-2 Descriiptive Statisticcs for Gold Oxide
O Domainns ......................................................................... 146
Table 14.5
5-3 Descriiptive Statisticcs for Silver Oxide
O Domaiins ........................................................................ 148
Table 14.5
5-4 Hard Domains
D Useed for Minor Element
E Estim
mation ................................................................. 149
Table 14.5
5-5 Descriiption Statistics for Minor Elements ...... ............................................................................. 150
Table 14.7
7-1 Block Model Param
meters ..................................... ............................................................................. 152
Table 14.7
7-2 Block Model Attrib
butes List ............................... ............................................................................. 153
Table 14.8
8-1 Search
h Parameters Used for Go
old and Silver Estimation ......................................................... 155
Table 14.9
9-1 Shahuiindo Mineral Resources Oxide ........... ............................................................................. 159
Table 14.9
9-2 Measured Oxide Reesources - Grade Tonnagee ........................................................................... 159
Table 14.9
9-3 Indicatted Oxide Reesources - Grrade Tonnagee ............................................................................ 160
Table 14.9
9-4 Inferreed Oxide Ressources - Graade Tonnage . ............................................................................. 160
Table 14.9
9-5 Shahuiindo Mineral Resources Sulfide ........... ............................................................................. 161
Table 14.9
9-6 Inferreed Sulfide Ressources - Graade Tonnage . ............................................................................. 162
Table 14.10-1 Composites vs Resource Model Grades......... ............................................................................. 163
P
Pagexv

port
Table 14.10-2 Confid

dence Levels of
o Key Criterria ................... ............................................................................. 165
Table 15.1-1 Shahuiindo Mineral Reserves .............................. ............................................................................. 170
2-1
Table 15.2 Off Grade Assumptions .............................. ............................................................................. 172
Cut-O
Table 15.3
3-1 Pit Op
ptimization Paarameters forr Shahuindo M
Mineral Reserrve ............................................... 172
Table 15.6
6-1 Pit Sizee vs Value...................................................... ............................................................................. 175
Table 16.1-1 Anddees and Associaates Geotech
hnical Parameeter Recommendations .................................. 177
Table 16.1-2 Shahuiindo Geotech
hnical Parameeters ............... ............................................................................. 178
2-1
Table 16.2 Predicted Water In
nflows during Mining .......... ............................................................................. 180
Table 16.3
3-1 Wastee Dump Volum
mes ........................................ ............................................................................. 182
Table 16.4
4-1 Drill and Blast Tech
hnical Parameeters ............... ............................................................................. 184
Table 16.5
5-1 Comparison of Pit Design to Whittle
W Shell .... ............................................................................. 185
Table 16.7
7-1 Mine Production
P Scchedule .................................. ............................................................................. 190
Table 16.8
8-1 Primarry Mining Equ
uipment Requ
uired for Shahhuindo ................................................................. 191
Table 16.8
8-2 Ancillaary Equipment Fleet Size........................... ............................................................................. 192
Table 16.8
8-3 Maxim
mum Loader Productivity
P Estimate
E ......... ............................................................................. 192
Table 17.1-1 Phase 1 Leach Pad Schedule ............................... ............................................................................. 198
Table 17.3
3-1 Phase 2 Leach Pad Design Criteria ................... ............................................................................. 202
Table 17.4
4-1 Phase 1 and Phase 2 Process Parrameters ....... ............................................................................. 203
Table 20.2
2-1 Sulfur Analysis ......................................................... ............................................................................. 215
Table 21.1-1 Estimaated Capital Expenditure
E Summary
S by Y
Year (US$M)...................................................... 228
Table 21.1-2 Major Component Capital Expenditures Liffe of Mine .......................................................... 228
2-1
Table 21.2 Operaating Cost Sum
mmary ................................... ............................................................................. 229
Table 22.1-1 Life off Mine Producction ....................................... ............................................................................. 230
3-1
Table 22.3 Projecct Capital ........................................................ ............................................................................. 231
Table 22.3
3-2 Sustain
ning Capital ................................................... ............................................................................. 231
Table 22.5
5-1 Gold and
a Silver Pricces.......................................... ............................................................................. 232
Table 22.6
6-1 Gold and
a Silver Reffining Terms ......................... ............................................................................. 232
Table 22.7
7-1 Life off Mine Operatting Cost .............................. ............................................................................. 233
Table 22.11-1 Economic Indicatorrs (US$M) ............................. ............................................................................. 234
Table 22.12-1 NPV Sensitivity
S Anaalysis on Metal Prices ........ ............................................................................. 235
S Anaalysis on Opeerating Cost . ............................................................................. 235
S Anaalysis on Totaal Capital....... ............................................................................. 235
Table 22.12-4 Sensitiivity Analysis on Metal Reccovery............ ............................................................................. 235
Table 22.13-1 LOM Base
B Case Summary - Assu
umptions ...... ............................................................................. 236
Paagexvi

port
Table 22.13-2 Shahuiindo Life of Mine

M Financial Model .......... ............................................................................. 237
2-1
Table 24.2 San Lo
orenzo Select Drill Resullts ................... ............................................................................. 254
Table 24.2
2-2 Choloque Select Drill Results ........................ ............................................................................. 255
Table 24.2
2-3 Southeeast Extension Select Drrill Results ..... ............................................................................. 256
Table 24.2
2-4 D Results ........................... ............................................................................. 256
El Saucce Select Drill
Table 24.2
2-6 La Chiilca Baja Sellect Drill Results ................. ............................................................................. 257
Table 24.2
2-7 Azuless Sulliden Drill
D Results ........................... ............................................................................. 259
Table 24.2
2-8 Algamarca Samplee Results from
m the Descubbridora Vein ...................................................... 261
Paagexvii

port
1.0 EXECUT
E TIVE SUMMARY
Y
1.1 Introduct
I tion
Tahoe Reesources Inc. (Tahoe or Company), whose comm
mon shares are listed fo
or trading on the
Toronto Stock Exchan O), New Yorrk Stock Exc hange (NYSEE:TAHO) and
nge (TSX:THO d Bolsa de Vaalores:
Peru (BVLL:THO), has prepared thiss Technical Report
R in acco
ordance withh Canadian N
National Instruument
43-101 (N
NI 43-101) fo
or the Shahuindo mine, Cajabamba,
C Peeru. This teechnical report summarizees the
prefeasibility study of the
t technical and economic viability of tthe Shahuindo mine.
wing events triggered an updated

The follow u NI 43
3-101 report for the Shahuuindo mine:
On
O 09 February 2015, Tahoe and Rio Alto
A Gold (Riio Alto) enteered into a deefinitive agreeement
to
o combine their respectivee businesses and finalized the transaction on 01 Appril 2015. Through
th
his merger, Tahoe
T Resourrces acquired 100% ownerrship of the m
mining assets of Rio Alto w
which
in
ncluded the Sh
hahuindo pro
oject.
The
T Mineral Resources
R and
d Mineral Resserves estimaates have beeen updated ass the result o
of data
obtained from
m drilling and additional en
ngineering stuudies conduccted in 2014 and 2015. M
Mining
sttudies incorpo
orate updated
d cost estimaates and finan cial analyses.
Tahoe
T has revised the minin
ng strategy fo
or the Shahuinndo mine.
Tahoe
T has con her metallurgical testing o n the ore at Shahuindo and has reviseed the
nducted furth
metallurgical
m assumptions and
a flowsheett for the projeect.
This repo
ort has been completed
c haaving an effecctive date of 001 January 20016. The effeective dates o
of the
Mineral Resources
R esttimate and Mineral Reservves estimate are 15 April 2015 and 011 November 2015,
respectiveely. Unless otherwise
o noted, monetarry values are expressed inn United Stattes dollars ($
$) and
units are metric.
1.2 Principal
P Findings
Tahoe, th
hrough its wholly owned subsidiary,
s Shaahuindo SAC
C, owns and o
operates the Shahuindo m
mine in
Peru. Th
he Shahuindo
o deposit is an intermed
diate-sulfidati on sedimentt-hosted epitthermal gold--silver
deposit which
w the Co
ompany has initiated opeen pit miningg and heap leaching of o
oxide ore. Metal
recovery is by carbon-in-column adsorption-d
desorption-refining (ADR)) processes w
which produuces a
gold-rich dor for sale to internatio
onal refineriess.
Constructtion of the Shahuindo

S ommissioningg of the mine and
mine commenced in mid-22014, with co
processing facilities in
n the fourth quarter of 2015.
2 The C
Company annticipates achhieving comm
mercial
on at Shahuind
productio do in the seco
ond quarter of
o 2016.
Page1

port
Productio
on at Shahuind
do is scheduleed in two phaases: Phase 1 processes ccoarse-grain rrun-of-mine (ROM,
i.e., no crrushing required) material at an initial rate of 10,0000 tonnes o
of ore per daay (tpd) in 20016; a
second ad
dsorption column circuit will
w be installeed in mid-20 16 to increasse the plant pprocessing capacity
to accommodate increeased mining rates. Phasee 2 begins in 2018 and continues throuugh the end o
of the
current mine
m life with the plant cap
pacity increaseed to 36,000 tpd to proceess mixed coaarse- and finee-grain
ore that requires crushing and aggglomeration prior to leaaching. The phased apprroach enabless gold
on as soon ass possible witth minimal caapital expendiiture, thus geenerating cashh flow early in the
productio
project.
Througho
out this reporrt, references made to Phaase 1 and Phaase 2 producttion rates refeer to processs plant
capacity rather
r than mining
m rates, though
t plant capacity and mining ratess (ore placed on leach pad
ds) do
coincide later
l in the mine
m life. An ore stockpilee will be utiliized to storee mine produuction in exceess of
plant capaacity, with sto
ockpiled ore incrementally
i y added to thee leach pads o
over the life o
of mine.
The prefeeasibility study supports th

he declaration of Proven and Probablee Mineral Resserves. The study
provides economic
e parrameters for the Shahuind
do mine from 01 January 22016 forward..
Highlightss of the studyy include:
Measured
M and Indicated Miineral Resourrces of 143.1 million tonnnes and 2.28 million oxidee gold
ounces at an average gold grade
g of 0.50 gram per tonnne (g/t).
Proven and Prrobable Minerral Reserves of 111.9 mill ion tonnes att an average gold grade o
of 0.53
g//t, containing 1.91 million ounces
o of golld.
Average
A annuaal gold produ
uction (i.e., go
old in dor) of 78,000 ouunces in the first two yeaars of
production (Phase 1) and 169,000 oun
nces in yearss three throuugh ten (Phase 2). Total gold
produced in do
or over the LOM is estim
mated to be 1 .504 million o
ounces.
As pital costs aree estimated aat $179.6 million for projject (construction)
A of 01 Januaary 2016, cap
caapital and $14
40.7 million fo
or sustaining capital over tthe LOM.
After
A tax net present
p value at a 5% disco
ount rate (NPPV5) of $318.9 million and an internal rrate of
reeturn (IRR) of 40.6% with a payback peeriod of 4.1 yeears at the baase case metaal prices.
Ex
xploration co onstrates considerable pottential
onducted by previous owners and by Tahoe demo
o add additional gold ouncces to the production pro
to ofile at Shahuindo and has identified muultiple
ex
xploration prrospects in the district.
Mineral Resources
R and
d Mineral Ressources are reported
r usinng metal pricees of $1,200//oz Au and $
$15/oz
Ag. Mineeral Resourcees are reporteed within a $1,400/oz
$ Au pit shell at a gold-equivallent (AuEq) ccut-off
grade of 0.14 g/t. Th
he financial analysis
a uses escalating m
metal prices o
over the LO
OM beginningg with
$1,100/ozz Au in 2016 and increasin
ng in $100/ozz increments annually to $
$1,400/oz Auu in 2019 whhere it
Page2

port
remains constant
c thro
ough the end of the mine life. Likewisse, silver pricees used are $
$14.75/oz in 2016,
$17.25/ozz in 2017, $2
20.00/oz in 20
018, and $23.50/oz in 20119 and forwaard to the ennd of the minne life.
Silver has a negligible contribution
c to
t the mine economics.
e
1.3 Property
P Descripttion and Location
L
The Shah
huindo mine is located in
n the district of Cachach i, province o
of Cajabambaa, departmennt and
region off Cajamarca, Peru. It iss situated ap
pproximately 59 kilometeers southeastt of the tow
wn of
Cajamarcaa and 14 kilometers wesst of the tow
wn of Cajabaamba. The project can be accessed from
Cajabamb
ba via a combination of asp
phalt, gravel and
a dirt roadss. Access cann be gained all year round.
The local climate conssists of two major

m season
ns; a cold andd dry dry seeason betweeen the montths of
May to Seeptember, an
nd a humid w
wet season between the months of O
October to A
April. The avverage
annual preecipitation is 999.7mm a year,
y with an average
a tempperature of 155.7C.
1.4 Mineral
M Tenure
T
The Shahuindo properrty comprisess one mineral concession, Acumulacionn Shahuindo, which includ
des 26
mineral titles with an
n approximatte area of 7,339 hectaress. The conccession is 1000% controlleed by
Tahoes wholly
w owned
d subsidiary, Shahuindo SA
AC. The minning rights annd surface rigghts are regisstered
under thee name of Shahuindo SA
AC in the go
overnment tittle registry o
office. All claims are in good
standing as
a of the effecctive date of this
t report.
Shahuindo
o SAC has accquired 381 surface
s rightss within the Shahuindo prroject area to date, covering a
total areaa of about 2,559 hectarees. Some of these surfacce rights werre used to rrelocate locaal land
owners in
nto new areass.
1.5 Permits
P
The Shahu
uindo mine operates
o undeer an initial En
nvironmental Impact Stateement (EIA, EEstudio de Im
mpacto
Ambientaal) approved in 2013. Thee EIA was prrepared acco
ording to the Ministry of Energy and Mines
(MEM) requirements and
a complies with
w Peruvian
n regulations..
As of thee effective datte of this rep

port, most reequired perm
mits have been obtained, w
with the rem
maining
permits being
b in the final stages of
o approval. The
T followinng list describbes the statuus of the reqquired
permits fo
or operationss as of 01 Janu
uary 2016:
Certificate
C for the inexisten
nce of Archaeeological Rem
mains Appro
oval granted.
En
nvironmental Impact Assessment (EIA) - Approval granted. Exppansion EIA in process.
Mine
M Closure Plan
P Appro
oval granted
Page3

port
Beeneficiation Concession
C Approval graanted.
Water
W usage permit
p Apprroval granted.
Mining
M Plan Final
F stage of evaluation with Ministry o
of Energy and Mines.
Operations
O Permits In pro
ocess; approvvals expectedd in January 20016.
All permiits and any new permits will be renewed or obbtained as reequired. It is expected thhat all
remainingg permits requ
uired for full operations will
w be obtaineed in January 2016.
1.6 Environm
E ment
The operrating plan will

w adhere to
o Tahoes maandate that t he Shahuindo
o Project meeet or exceeed the
standards of sustainab
bility and en
nvironmental managementt based on North Amerrican practicee and
regulation
n. The Com
mpany has im onmental management plan to
mplemented a compreheensive enviro
regularly and
a systemattically monitor air quality, surface wate r and grounddwater qualityy, stream sediment
geochemistry, blast vib
bration, noisee levels, wastte rock geoc hemistry (AR
RD monitorinng), waste dissposal
practices, reagent hand
dling and storrage, and reclamation and reforestationn progress.
1.7 History
H
Modern exploration
e activities
a havee been condu
ucted on the Shahuindo pproperty sincce 1945 by M
Minera
Algamarcaa SA (1945-1989), Alta Tecnologa
T e Inversin M
Minera y Mettalrgica S.A. (Atimmsa, 1990),
Asarco LLLC (Asarco, 1994-1996), Southern
S Perru Copper Co
orporation (SSouthern Perru, 1997-19988) and
Sulliden Gold
G Corporaation (Sullideen, 2002-2012
2). Rio Alto initiated infilll drilling of tthe resource upon
their acqu
uisition of Sulliden in 2014 and Tahoe has
h continued infill and expploration drillling in the district.
1.8 Geology
G and
a Mine
eralization
n
The Shahuindo deposiit is located on

o the eastern flank of thhe Andean W
Western Cord
dillera in norrthern
Peru, witthin a region
nal fold and thrust belt of predominnantly sedim
mentary rockss. The regiion is
particularrly well-endow
wed with mineral occurrences varyingg from low-tto-high sulfidation system
ms and
from porp
phyry through
h polymetallicc to epitherm
mal deposits.
Mineralizaation at Shahuindo is bestt described as

a an intermeediate-sulfidattion epitherm
mal system, thhough
high-sulfid
dation mineraalization occu
urs at depth and
a in the co
ore of hydrotthermal brecccias. Oxidatiion of
mineralizaation extendss to a depth of
o 150m below
w surface. Inn the weatherred oxide faccies, gold and silver
are associated with the presence of
o jarosite and
d hematite. In the underllying fresh suulfide facies, ggold is
typically extremely
e finee grained with
h the related mineral speccies not yet iddentified.
The princcipal zone off mineralizatiion in the Sh

hahuindo disttrict occurs in a belt beetween two large-
amplitudee regional-scaale folds, thee Algamarca anticline andd the San Jo
ose Anticline. marca
The Algam
Page4

port
anticline is
i upright and
d symmetricaal with amplitude of at leeast 400m, w
whereas the SSan Jose fold is an
asymmetrric, overturneed, northeast--vergent fold with a shallo
owly dipping aaxial surface aand amplitudee of at
least 300
0m. Importaant structuraal elements include fold limbs and fo
old axial surrfaces, fold-reelated
fractures, faults and reelated extension fractures, breccia dike s and irregulaar bodies, and
d igneous intrusive
contacts.
ucture and litthology contrrol the locattion, shape, aand orientatio

Both stru on of the mineralization. The
mineralizaation is hosteed within the siliciclastic saandstone-dom
minant Farratt Formation aand the undeerlying
sedimentaary Carhuaz formation. These
T sedimeentary rocks have been inntruded by aat least three felsic
stocks which
w tend to
o be located
d along faultts and coress of anticlinaal structures. In additionn, the
metallurgiical recoveryy of gold is
i affected by
b lithology with the identification of five prrimary
geometallurgical domaains based on the relationsship betweenn lithology annd grain size aand gold reco
overy.
Modellingg the distribu
ution and occcurrence of lithologic uniits / geometaallurgical dom
mains is criticcal to
mine planning.
1.9 Drilling
D
Mineral Resources
R weere estimated
d using data from
f 1,039 ddiamond coree and reversse circulation (RC)
drill holess, totaling 164
4,015 meters,, from drillingg conducted bby Atimmsa, A
Asarco, Southhern Peru, Suulliden
and Rio Alto.
A The cut-off date for drill
d data inclu
usion in the m
mineral resourrce model waas 15 April 20015.
Prior to the
t acquisitio
on by Tahoe in April 2015
5, Rio Alto ddrilled predom
minantly RC holes in the oxide
portion of
o the depositt to bring thee drill density to a nominaal 25m x 25m
m spacing. Taahoe has conttinued
drilling diaamond core and
a RC for in
nfill, step-out, geotechnicall, hydrology, aand condemnnation purposses.
1.10 Sample
S Preparatio
P on and Analysis
Tahoe hass limited information abou

ut sample preeparation andd analyses for the drill proggrams prior tto the
major drill programs by
b Sulliden beeginning in 20
003. The drrilling prior to
o Sullidens w
work is considered
to be a minimal
m risk to
o the estimatte of Mineral Resources, aas this dataseet accounts fo
or only 15% o
of the
data used
d in the estim
mate and man
ny of the holees drilled priior to Sullideen have been twinned or offset
with new drill holes.
From 200
03 to 2012, Sullidens samp
pling and sam
mple dispatch for the Shah uindo projectt were carrieed out
under thee supervision of Sulliden sttaff. Samples were sent to
o ALS Mineralls (ALS, formerly known aas ALS
Chemex) in Lima forr sample preparation and analysis. S amples weree prepared aand analyzed using
industry-sstandard practices, includ
ding the usee of quality assurance aand quality ccontrol (QA
A/QC)
duplicatess, blanks, and assay stan
ndards. Thee ALS laboraatory in Lim
ma is ISO 90001:2008 and
d ISO
17025:200
05 certified.
Page5

port
Samples from
f Rio Alttos 2014-2015 drill proggrams were aanalyzed by CERTIMIN ((Lima). Gold
d was
assayed with
w a 50-gram fire assay using an atomic adsorpti on finish. Fiire assays weere repeated using
with a graavimetric finish for samples whose inittial fire assayy results werre greater thaan 10 g/t Au. Rio
Alto emp
ployed a QA
A/QC program uplicates, bla nks and assaay standards. The CERT
m of field du TIMIN
laboratoryy is ISO 900
01 certified for geochem
mical, metalluurgical and eenvironmental sample anaalyses.
Tahoe co
ontinues to use
u the CERT
TIMIN laboraatory in Limaa as its primaary assay labb for its conttinued
drilling at the Shahuind
do project.
Drill coree and RC saampling proccedures, sam

mple analyses,, QAQC pro
ocedures and sample seecurity
employed
d at Shahuindo
o are of sufficcient quality fo
or use in the resource esttimate.
1.11 Data
D Verification
The drill hole databaase has been major audits between 20003 and 2012 by
n the subject of three m
independeent consultingg firms and one
o audit by Tahoe
T in 201 5. The results of these auudits, includinng the
2015 Tahoe audit, found the databaase integrity and QAQC results sufficiient to ensurre the datasett used
is reliable for resourcee estimation purposes.
p So
ome discrepa ncies with silver standardss used by Rio
o Alto
oe in 2015 were identiffied, though this is not considered material duee to the minimal
and Taho
contributiion of silver to
t the value of
o the projectt.
The result of the veriffication progrrams support the estimatio

on of the Shaahuindo Mineeral Resourcees and
nment of Measured, Indicatted and Inferrred resource classificationns.
the assign
1.12 Mineral
M Processing
P g and Me
etallurgica
al Testing
g
The mineral processingg and metallu

urgical testingg that include d cyanidationn and flotationn testing proggrams
n conducted on composite samples fro
have been om the Shahuuindo projectt by various ccompanies sttarting
in 1996. These companies include Asarco, Com
mpania Minerra Algamarcaa, Sulliden, Rio
o Alto and T
Tahoe,
with test work conduccted at Dawsson Metallurggical Laborato
ories, Kappes,, Cassiday & Associates (K
KCA),
Heap Leach Consultan
nts (HLC), SG
GS and Tahoes La Arena laaboratory.
Results frrom the cyan

nidation tests conducted by
b KCA from
m 2009 to 20012 and in 20014, and by T
Tahoe
(Rio Alto)) in 2014 and
d 2015 on corre drill hole and
a surface co
omposites weere used in thhe developmeent of
the recovvery and leach
h design paraameters for use
u in the preefeasibility stuudy. The ressults of the ttesting
program indicate exceellent gold reccoveries at bo
oth run-of-m
mine (ROM) aand coarse crrush sizes witth low
to moderrate reagent requirementts, implying amenability tto heap leacching. Silverr recoveries were
generally low.
Compacteed permeabillity tests on -25mm crusshed sampless were conducted, both with and wiithout
cement. The
T results are
a variable with
w one-third
d of the tests conducted inn 2015 failing.. The resultss from
Page6

port
KCAs co
ompacted perrmeability tests on -32mm
m composites conducted inn 2012 indicaated that mixxing of
the more weathered samples
s with competent material
m woulld be requireed to maintainn permeabilityy at 6
kg of cem
ment per tonne of ore. Tw
wo of the threee KCA testss passed the ccompacted peermeability teests at
a simulateed heap heigh
ht of approxim
mately 110 meeters.
Table 1.12-1 includes the field golld and silver recoveries, reagent conssumptions, annd leach times on
oxide matterial, based on
o the availab
ble test work results from both ROM aand single-stagge crushing teests.
Tablle 1.12-1 Metallurgical

M Test Resultss
Paramete
er ROM Cru
ush
% Au Recovery 73% 800%

% Ag Recovery 7% 122%
NaCN Consumption 0.2 kg/t 0.3 kg/t
Cement
C 0 6 kgg/t*
Lime 2 kg/t 1 kkg/t
Leach Time 80 days 70 ddays
Size,
S p80 ~150mm 60 to 885mm
*Cement
* addition based on screeneed minus 75mm m
material
Maintainin
ng heap perm
meability and minimizing
m ch
hanneling at hhigher heap hheights constiitutes a risk tto the
project, as additional agglomeration
a n and compaccted permeabbility testing iss required. T
Tahoe will co
onduct
further teest work on the agglomerration circuit before operrations in 2018 (Phase 2).. This will innclude
further work on maxim
mizing recoveery and determining the m
maximum leachh pad height.
1.13 Mineral
M Resource
R and Mine
eral Reserrve Estim
mates
The Mineeral Resourcee estimate haas been classified as Meassured, Indicatted and Inferrred based o
on the
confidence of the inpu
ut data, geolo
ogical interprretation and grade estimaation parametters. The M
Mineral
Reserve estimate
e has been classifieed as Proven
n and Probabble, applying aapplicable mining, metallurgical,
economicc, permitting, and other relevant factorss to the Meassured and Inddicated Minerral Resources. The
Mineral Resource
R and Mineral Reseerve estimatees have been prepared annd reported in accordancee with
Canadian National Insstrument 43-101 (NI 43-1
101), Standarrds of Disclo
osure for Minneral Projectss, and
classificatiions adopted by the Canad
dian Institute of Mining, M etallurgy and Petroleum (C
CIM) Council.
Tahoe is not aware of any speciffic metallurgiical, infrastruuctural, envirronmental, leegal, title, po
olitical,
taxation, socio-economic or markketing issues that would impact the Mineral Reserve Estimaate as
d.
presented
Page7

port
1.13.1 Mineral
M Re
esources
The Mineeral Resourcee estimate fo
or the Shahu
uindo depositt contains Measured and Indicated M
Mineral
Resources (oxide) of 143.1 million
n tonnes at average
a gradees of 0.50 g/tt Au and 6.7 g/t Ag, conttaining
on ounces off gold and 30
2.28 millio 0.7 million ounces of silverr. Inferred M
Mineral Resouurces (oxide)) total
2.6 million
n tonnes at average
a gradees of 0.42 g/t Au and 7.4 gg/t Ag; containing 36,000 o
ounces of golld and
626,000 ounces
o of silveer. Sulfide reesources total 87.7 million tonnes at avverage grades of 0.71 g/t A
Au and
21.1 g/t Au;
A containingg 2.0 million ounces
o of gold and 59.4 m
million ouncess of silver. Alll sulfide reso
ources
are classiffied as Inferrred Mineral Resources. The effectivee date of thee Shahuindo Mineral Resource
estimate is
i 15 April 20
015.
Table 1.13-1 is a summ

mary of the Shahuindo
S off grades forr oxide materrial of
Mineral Resourrces, at cut-o
0.14 g/t AuEq
A and sulfide material of
o 0.50 g/t AuEq.
Table 1.13-1 Sha

ahuindo Mine
eral Resourcces
Materrial Resource
R Tonness Au Ag Au Ouncces Ag Ouncces
Typee Cla
assification (M) (g/t) (g/t) (koz) (koz)
Measured
d 96.5 0.50 6.7 1,546 20,901
Indicated 46.6 0.49 6.5 736 9,778

Oxide
Measure
ed and Indicate
ed 143.1 0.50 6.7 2,282 30,679
9
Inferred 2.6 0.42 7.4 36 626
Sulfide
e Inferred 87.7 0.71 21.1 2,002 59,441
Numbers may not add due to roundingg
Oxide ressources are reported

r with
hin a $1,400//oz Au optim
mized open pitt shell. Gold
d-equivalent ggrades
were calcculated in thee Shahuindo resource
r block model usiing the indiviidual gold and
d silver gradees for
each block and metal prices
p of $1,2
200/oz Au and
d $15/oz Ag uusing the form
mula:
AuEq
A g/t = Au g/t + (Ag g/t x 15/1200)
The sulfid
de Mineral Reesources at Sh
hahuindo are classified enttirely as Inferred due to lim
mited metalluurgical
characterization and wider
w drill spaacing than in the oxide po
ortion of thee deposit. Thhere have been no
economicc or mining studies
s of the sulfide porrtion of the Shahuindo deposit completed to datee; the
Inferred sulfide
s resourrce is reporteed at a 0.5 AuEq
A g/t cut-o
off using the same metal prices as useed for
calculatingg the oxide go
old-equivalen
nt values.
or the estimate of Minerral Resourcess includes daata from all drilling comppleted
The drill data used fo
through April
A 2015. The
T drill hole information includes collaar location, do
ownhole survvey, assay, lithhology
and oxidaation data.
Page8

port
Lithologiccal, oxidation and structuraal models weere created to

o model the ddistribution o
of mineralizatiion to
the pertin
nent geologicc domains. Gold
G mineralization domaiins were creaated using a 0.1 g/t Au cuut-off;
these dom
mains were used
u as hard boundaries to
o constrain tthe grade esttimate. Silverr values havee been
estimated
d inside the go
old domains. A suite of otther elementts were also m
modeled and estimated intto the
block mo
odel, includingg sulfur, copp
per, lead, zincc, arsenic, mo
olybdenum, ccalcium, totall iron, sodium
m and
manganesse. The econo
omic contribu
ution of thesee elements is not material to the project.
1.13.2 Mineral
M Re
eserve Estim
mate
The Shahuindo Proven
n and Probab
ble Mineral Reserves
R on tonnes off oxide materrial at
totaal 111.9 millio
average grades of 0.53
3 g/t Au and 6.8 g/t silver;; containing 11.91 million o
ounces of golld and 24.5 m
million
ounces off silver at a cut-off
c grade of 0.18 g/t Au.
A Mineral R
Reserves are inclusive of M
Mineral Resouurces.
There aree no sulfide Mineral
M Reservves reported. The effectivve date of the Shahuindo Mineral Reseerve is
01 Novem
mber 2015.
The Shahu
uindo Mineraal Reserve esttimate is summ
marized in Taable 1.13-2.
Table
e 1.13-2 Sh
hahuindo Min
neral Reservve
Tonnes
T Au
A Grade Ag Grade Au Ounces Ag Ounces
Re
eserve Classific
cation
(M) (g/t) (g/t) (000s) (000s)
Provven 82.7 0.54 6.92 1,424 18,400

Prob
bable 29.2 0.51 6.54 483 6,142
Prov
ven & Probablle 111.9 0.53 6.82 1,906 24,541
Num
mbers may not add due to round
ding
Metal pricces used forr reporting Mineral

M Reserrves are $1,2200 per ouncce gold and $15.00 per o
ounce
silver. Thee Mineral Resserve estimatte does not in
nclude processs recovery faactors or plannt losses.
The cut-o
off grade for the Mineral Reserve
R was calculated fro
om operatingg costs experrienced at Taahoes
La Arena mine, the esstimated mettallurgical perrformance so urced from ttest work annd engineeringg first
principles. Proven and
d Probable reserves include five percennt dilution at zzero grade annd mining losses of
two perccent. Resourcces within the
t mine plaan classified as Inferred were consid
dered to havve no
economicc value and haave been classsified as wastee in the mininng schedule.
1.14 Mining
M Method and Mine Production
n Schedu
ule
The Shahuindo mine is an open piit heap leach operation. The mining method used
d is a convenntional
drill/blast,, shovel and dump truckk operation. The miningg will be exeecuted underr an alliance style
contract similar
s to the mining operaation at the Companys
C Laa Arena mine.
Page9

port
The minin
ng schedule at
a Shahuindo consists of two
t phases. Phase 1 entaails mining higher grade sttarter
pits proviiding ROM material
m to the Phase 1 leaach pads in 22016 and 2017; the averaage mining raates in
2016 and 2017 are ap
pproximately 15,800 tonn
nes of ore p er day and 15,300 tonnees of ore perr day,
respectiveely. Phase 2, beginning in 2018, includes the additi on of a crushing and aggllomeration faacility,
increased plant capacitty and an add
ditional leach pad. The minning rate in PPhase 2 increaases productiion to
meet the Phase 2 plant capacity of 36,000 tonnees of ore perr day, which w
will require aan upgraded m
mining
fleet.
M production schedule as of 01 January 2016 foreecasts the Shhahuindo minne to produce and
The LOM
deliver to
o the processing facilities a total of 110.9 million tonnnes of ore aat an average gold grade o
of 0.53
g/t, and avverage silver grade
g of 6.86
6 g/t. The LO
OM plan is su mmarized in Table 1.14-1..
Table
e 1.14-1 Liffe of Mine Miining Schedu
ule
Unit 2016 20
017 2
2018 2019 2020 2021
Ore Tonnes k toonnes 5,7

756 5,602 100,289 13,412 13,039 12,352
Au Grade g/t
g 0.6
68 0.54
0 00.64 0.48 0.48 0.51
Ag Grade g/t
g 5.9
95 5.73 7.24 6.45 7.05 6.47
Waste Tonnes k toonnes 4,9

954 4,113 2 1,835 18,895 19,246 19,893
Strip Ratio
o wastee:ore 0.8
86 0.73
0 2.12 1.41 1.48 1.61
Total Tonnes k to
onnes 10,7
710 9,715 32
2,124 3
32,306 32,285 3
32,245
Au Mined
d k oz 12
26 97
9 212 206 200 201
Ag Mined k oz 90
05 1,090 22,524 2,741 2,954 2,568
Unit 2022 20
023 2
2024 2025 Total
Ore Tonn
nes k toonnes 16,0
066 14
4,405 1 2,732 7,236 110,890
Au Gradee g/t
g 0.5
50 0.59
0 00.52 0.49 0.53
Ag Gradee g/t
g 7.7
79 7.16
7 6.36 7.30 6.86
Waste Tonnes k toonnes 16,3

395 15,922 1 7,497 11,106 149,855
Strip Ratio
o wastee:ore 1.0
02 1.11 1.37 1.53 1.35
Total Tonnes k to
onnes 32,4
461 30,327 30
0,230 1
18,342 2
260,485
Au Mined
d k oz 25
58 273
2 215 113 1,900
Ag Mined k oz 3,5
599 3,143 22,663 2,246 24,470
P
Page10

port
1.15 Processin
P ng
Gold from
m the Shahuindo mine wiill be extractted from the ore via heapp leach and tthen processed by
carbon-in-column, adsorption-deso
orption-refinin
ng (ADR) opperations. Thhe civil and ggeotechnical d
design
of the leaach pads werre engineered
d by Anddess Asociados SSAC; the pro
ocess plant w
was engineered by
Heap Leaching Consultting SAC, botth of Lima, Peeru.
The startt-up producttion plan forr the processsing of Shahhuindo ore is 10,000 tppd (Phase 1) with
processing capacity ex
xpanded earlyy in the seco
ond half of 20016. Averagee processing rates in 2016 and
2017 are about 12,20
00 tonnes of ore per dayy and 16,5000 tonnes of o
ore per day, respectivelyy. The
process plant
p facilitiess will be furtther expandeed in Phase 2 to 36,000 tonnes per day. The Phhase 2
expansion
n to be impleemented in 2018 will inclu
ude a crushinng and agglom
meration circcuit that incluudes a
single-stagge crusher an
nd screen, cement and lim
me addition to
o the fines, aggglomerationn in belt convveyors
and stackiing system to
o place ore on
nto the leach pad.
The proceessing parameeters are sho

own in Table 1.15-1.
Table 1.15-1 Pro

ocessing Desiign Paramete
ers
Param
meter Phase 1 Phase 2
Leach Pad
P Area 41 Ha 153
Dry To
onnes of Ore/Daay 10,000 36,000
Head Grade
G 0.64 g/t Au 00.52 g/t Au
Averagee Flow Rates 400 m3/H 16000-1800 m3/H
Leach Time
T 80-90 days 775-85 days
Lift Heiight 8 meters 88-16 meters
Materiaal Size 100

0% minus 300mm
m 100%
% minus 75mm
NaCN Consumption 0.2 kg/tonne of oree 0.3 kkg/tonne of ore
Lime Consumption no addition 1.0 kkg/tonne of ore
Cement Consumption n/a 4--6 kg/tonne
Averagee Au Recovery 73% 80%
The Shahuindo mine is

i scheduled to produce a total of 1. 504 million o
ounces of go
old and 2.8 m
million
ounces off silver in dorr over a 10 year period. Table 1.15-22 summarizes the life of m
mine processs plant
throughpu
ut schedule and ounce pro
oduction.
P
Page11

port
Table 1.15-2 Life of Mine

M Processs Plant Throu
ughput
Unit
U 2016
6 2017 2018 2019 2020 2021
HeapLeacchProcessTonnes kto
onnes 4,446
6 6,022 11,179 13,000 13,039 12,352
ProcessA
AuHeadGrade g/t
g 0.79 0.52 0.60 0.48 0.48 0.51
ProcessA
AgHeadGrade g/t
g 6.59 5.63 6.84 6.56 7.05 6.47
Auouncesrecovered koz 82.6 74.1 172.9 161.8 160.0 160.8
Agouncesrecovered koz 65.9 76.3 294.9 328.9 354.5 308.2
Unit
U 2022
2 2023 2024 2025 Total
HeapLeacchProcessTonnes kto
onnes 13,140
0 13,140 13,140 11,431 110,890
ProcessA
AuHeadGrade g/t
g 0.55 0.62 0.52 0.41 0.53
ProcessA
AgHeadGrade g/t
g 8.52 7.44 6.30 6.28 6.86
Auouncesrecovered koz 186.5
5 209.5 174.5 120.8 1,503.7
Agouncesrecovered koz 431.9
9 377.2 319.6 276.9 2,834.2
1.16 Infrastruc
I cture
The Shah
huindo mine is approximaately 25 kilom
meters by ro
oad from thee town of Cajabamba and
d 130
kilometerrs by road fro
om the town of Cajamarcca. Access frrom Cajamarrca is via asphhalt-paved higghway
and gravel and dirt roaads.
During Ph
hase 1 operaations, powerr at the site will
w be providded by on-sitte diesel genneration capable of
sustainingg 1.2 MW of power. In 20
018, power will
w be providded via the N
National Commercial Grid.. The
long term
m power requirement for the
t Shahuindo
o mine is 7.4M
MW.
All processs and domesstic water forr the operatio

on will be suppplied from ann 18,000 cubic meter rainw
water
run-off co
ollection pon
nd, a water well located 300m west of the Shahhuindo open pit, and from pit
dewaterin
ng which will be pumped at the beginning of the ssecond year o
of operation.. Hydrogeollogical
studies indicate sufficieent water will be availablee to supply pprocess and ppotable waterr requiremennts for
the life off the mine.
At the efffective date of

o this report, buildings req
quired for thee initial start-up are in placce and are tailored
for Phasee 1 productio
on. Some of the infrastru
ucture from Phase 1 will be upgradeed before Phhase 2
productio
on commencees.
1.17 Mine
M Clossure
The entiree facility was designed with closure in mind

m to the ggreatest extennt practicablee. The facilitiees are
designed and
a operated
d to minimize the footprintts and areas o
of disturbancee and utilize tthe most advvanced
planning and reclamattion techniqu
ues available. The disturbbance footprrint of Shahuuindo mine ssite is
P
Page12

port
approximately 1,348 Ha.

H Reclamattion will com
mmence as so on as practiccal during opeerations by pplacing
salvaged topsoil
t on outter slopes and encouragingg vegetation.
1.18 Capital
C an
nd Opera
ating Costs
1.18.1 Operating
O Costs
The operrating costs fo
or the Shahuindo mine weere calculatedd for each yeear during thee life of mine using
the forecaasted annual production tonnages.
t Th
he mining, pro
ocessing and site general and administrration
(G&A) co
osts were derrived from firrst principals, or based onn operating co
osts experiennced at Tahoes La
Arena min
ne which is co
omparable to
o the Shahuind
do mine.
Table 1.18
8-1 includes the
t summary of the anticip
pated life-of-m
mine costs.
Tablle 1.18-1 Operating

O Co
ost Summaryy
Operating Cost
C Value
Mining Cost ($/ttonne mined) $1.91
Mining Cost ($/o
ore tonne mined
d) $4.50
Process Plant Operating
O Cost ($
$/tonne processsed) $2.55
General Administration ($/tonn
ne processed) $2.23
*includes $1.42/ttonne ore for crrushing and agglo

omeration beginning in 2018
1.18.2 Capital
C Co
osts
The capittal expenditurre requiremeent for the Sh
hahuindo minne is $320.3 million dollarrs beginning o
on 01
January 20
016. This inccludes constru
uction capital of $179.6 m illion and $1440.7 million inn sustaining capital.
Capital ex
xpenditures in
ncurred priorr to 01 Januarry 2016 are cconsidered as sunk costs.
The projeect capital is summarized

s in
n Table 1.18-2. The total project capittal carried in tthe financial m
model
for new construction
c is expended over
o a three year
y period.
Table 1.18--2 Project Capital

Prroject Capital $ ((millions)
Mining $27.5
Pro
ocess Plant $105.6
Otther $46.6
To
otal $179.6
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1.18.3 Financial
F Analysis
A
The Shahu
uindo mine economic
e analysis indicatess that the pro
oject has an Internal Rate of Return (IR
RR) of
40.6% witth a payback period of 4.1 years afterr taxes and aan after-tax Net Present Value using a five
percent discount
d rate (NPV5) of $318.9 M after taxes.
Sensitivityy analyses weere conducteed using chan

nges in metaal prices, opeerating cost, initial capitaal, and
recovery; the results of which aree summarizeed in Table 11.18-3. Channges to metaal prices havve the
greatest im
mpact on thee NPV and IRR
R of the projeect.
Ta
able 1.18-3 Sensitivity Analysis
A NP
PV and IRR a
after Taxes
NPV @ NPV @ NPV @
Variable
e Change
e IRR% Pay
yback
0% 5% 10%
+20% $723,045
5 $508,619 $362,690 67.7% 3.3
+10% $597,309
9 $413,960 $289,289 53.1% 3.6
Change in
n
Base Casse $471,200
0 $318,863 $215,413 40.6% 4.1
Metal Pric
ces
-10% $342,701 $221,333 $139,143 29.0% 4.8
-20% $202,022
2 $113,741 $54,457 17.1% 6.1
+20% $348,725
5 $225,158 $141,508 29.0% 4.9
+10% $411,022
2 $273,026 $179,417 34.8% 4.4
Change in
n
Operating
g Base Casse $471,200
0 $318,863 $215,413 40.6% 4.1
Cost
-10% $530,361 $363,820 $250,632 46.7% 3.8
-20% $588,728
8 $407,955 $285,031 53.1% 3.6
+20% $409,200
0 $263,661 $165,625 29.1% 4.8
+10% $440,142
2 $291,213 $190,477 34.2% 4.5
Change in
n
Total Base Casse $471,200
0 $318,863 $215,413 40.6% 4.1
Capital
-10% $502,354
4 $346,596 $240,419 49.0% 3.7
-20% $533,592
2 $374,233 $265,224 60.2% 3.4
2% $508,599
9 $347,156 $237,466 44.2% 3.9
1% $489,905
5 $333,014 $226,443 42.4% 4.0
Change in
n
Metal Base Casse $471,200
0 $318,863 $215,413 40.6% 4.1
Recovery
-1% $452,456
6 $304,682 $204,358 38.9% 4.2
-2% $433,662
2 $290,459 $193,265 37.2% 4.3
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1.19 Explorati
E on Statuss
Numerou
us oxide and
d sulfide exp
ploration targgets that havve consideraable potentiaal to increase the
resource and reserve base
b at Shahu
uindo have beeen identified through surfface mapping,, rock-chip annd soil
sampling surveys, geo
ophysical survveys and drilling conductted by previo
ous owners of the Shahhuindo
property and by drilling conducted by Tahoe sub
bsequent to itts merger witth Rio Alto inn April 2015.
Drilling arround the peeriphery of th

he currently-d
designed pit liimits in the ssecond half of 2015 successfully
identified mineralizatio
on outside of the northeasst and southw
west margins o
of the Phase 2 pit shell thaat will
be incorporated into future mine plans. Likewisse, condemnaation drilling in the planned
d waste dumpp area
identified shallow min
neralization th nts an extenssion to the kknown resouurce; a portion of
hat represen
which will be mined an
nd delivered to
t the leach pad
p or stockppile prior to cconstruction o
of the waste dump
foundation.
Other drilling in 2015 identified metal grades and mineraloggy similar to Shahuindo att the San Lorrenzo,
Choloquee and La Chilca prospectss proximal to
o the Shahuinndo pit. Thesse targets represent nearr-term
opportunities to increaase the resou
urce base as Shahuindo.
S
1.20 Conclusio
C ons and Recomme
R endationss
The resultts of this stud
dy demonstraate that:
1. The Shahuindo
o mine is eco
onomically viable from 0 1 January 20016 through tto the end o
of the
esstimated minee life, supportting the declaaration of Pro
oven and Probbable Minerall Reserves.
2. The Shahuindo
o mining strattegy consists of two phasees. The first pphase will pro
ocess ROM o
ore at
n initial rate of
an o 10,000 tonnes of ore peer day, rampi ng up to an aaverage of 12,200 tonnes o
of ore
peer day in 2016 and 16,50
00 tonnes off ore per dayy in 2017; thhe second phhase will include a
crrushing and agglomeration
a n circuit that will increase production tto 36,000 tonnnes per day.. The
ph
hased approaach enables go
old productio
on as soon ass possible wiith minimal caapital expend
diture,
geenerating cash
h flow early in
n the project.
3. The results off laboratory testing

t prograam indicate eexcellent goldd recoveries at both ROM
M and
moderate
m crussh sizes with low to modeerate reagentt requirementts, implying amenability to
o heap
leeaching. Silver recoveries are
a generally low.
4. The Shahuindo
o district ho
olds excellentt opportunitiies for furtheer discoveryy and definition of
ad
dditional oxid
de and sulfidee mineralized bodies that hhave potentiaal to increase the resourcee base
att Shahuindo.
The autho
ors of this rep
port recomm
mend the Com
mpany to:
1. In
nitiate field an
nd laboratory studies invesstigate the po
otential to redduce capital aand operating costs
reelated to the Phase 2 crusshing and agglomeration sccheme. Condduct pilot scaale heap leachh tests
P
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port
on the currentt ROM leach pad to investtigate field-scaale performannce on composites with vaarying
deegrees of coarse-to-fines ratios. The metallurgical facilities at tthe Companyys La Arena mine
sh
hould be utilizzed to conduct further permeability an d compactionn tests.
2. In he siltstones and breccia w

nvestigate thee ability of th with high fines content to
o percolate iin the
ROM
R leach pad.
3. Conduct
C additional metallurrgical testing on drill sampples.
4. Im
mprove the geeometallurgiccal model. Furrther refinem
ment of the geeologic modeel at Shahuind
do will
grreatly aid in mine planniing and scheeduling, and increase connfidence in tthe material types
sccheduled for delivery
d to th
he leach pad to
t optimize m
material blendding schemes.
5. Aggressively
A ex hahuindo disttrict and acceelerate districct exploratio
xplore the Sh on with the goal of
diiscovering add
ditional resou
urces amenab
ble to the Shaahuindo proceessing facility..
6. Evvaluate the mineralized

m zones
z on the periphery of the Shahhuindo depossit to expand the
reesource and incorporate these extensio
ons into a new
w pit design.
mprove the QA/QC pro

7. Im ocedures by including a wider-rangee of certified
d assay stand
dards,
paarticularly asssay standardss at or near the
t operationnal gold cut-o
off grade. C
Create assay bblanks
frrom coarse RC
R drilling rejects.
r Utilize a secondd commerciaal laboratory or the La A
Arena
laboratory for check assays of exploratio
on samples.
8. Update
U urce estimatee as additionaal drill hole in formation beecomes available.
and refine the resou
9. Evvaluate the ecconomic poteential of the sulfide

s mineraalization below
w the Shahuinndo pit.
After reaching commeercial producction, the autthors recomm

mend the Co
ompany systeematically evaaluate
mining, processing and other surfface operatio
ons to optim
mize processees and proceedures and reeduce
d operating costs.
capital and c Examples include th
he following trrade-off studies to evaluatte:
a) th
he potential to
t reduce orr eliminate the requiremeent for the ccrushing and or agglomerration
ciircuit, and thee impact to metal
m recoveries;
b) th
he economic benefit of imp
plementing a secondary crrushing circuit to increase recovery;
c) th
he potential to
t increase th ope angle of the pit to increase the N
he overall slo NPV of the project
th
hrough furtheer geotechnical and hydroggeological anaalyses; and
d) th
he potential to
t reduce op
perating costss by evaluatinng the suitabbility by backffilling mined waste
ro
ock into the pit.
p
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port
2.0 INTROD
I DUCTION
2.1 Purpose
P and
a Basiss of Reporrt
Tahoe Reesources Inc. (Tahoe or Company), whose comm

mon shares are listed fo
or trading on the
Toronto Stock Exchan O), New Yorrk Stock Exc hange (NYSEE:TAHO) and
nge (TSX:THO d Bolsa de Vaalores:
Peru (BVLL:THO), has prepared an updated Tech
hnical Reportt (the Reportt) for the Com
mpanys Shahhuindo
mine in Peru.
P This reeport presentts the resultss of a prefeassibility study of the technnical and econnomic
viability of the Shahuindo mine.
wing events have

The follow h triggered
d an updated NI 43-101 Teechnical Repo
ort for the Shhahuindo minee:
O 09 February 2015, Tahoe and Rio Alto

On A Gold (Riio Alto) enteered into a deefinitive agreeement
o combine their respectivee businesses and finalized the transaction on 01 Appril 2015. Through
to
th
his merger, Tahoe
T Resourrces acquired 100% ownerrship of the m
mining assets of Rio Alto w
which
in
ncluded the Sh
hahuindo pro
oject.
The
T Mineral Resources
R and
d Mineral Resserves estimaates have beeen updated ass the result o
of data
obtained from
m drilling and additional en
ngineering stuudies conduccted in 2014 and 2015. M
Mining
sttudies incorpo
orate updated
d cost estimaates and finan cial analyses.
Tahoe
T has revised the minin
ng strategy fo
or the Shahuinndo mine.
Tahoe
T has con her metallurgical testing o n the ore at Shahuindo and has reviseed the
nducted furth
metallurgical
m assumptions and
a flowsheett for the projeect.
This repo
ort has been completed
c in accordance with
w the disc losure and reeporting requuirements sett forth
in the Toronto Stock Exchange Manual, Nationaal Instrument 43-101 Standdards of Discclosure for M
Mineral
Projects (NI
( 43-101), Companion
C Policy
P 43-101C
CP to NI 43- 101, and Form
m 43-101F1 o
of NI 43-101..
2.2 Sources
S of
o Information
Informatio
on contained
d in this Rep btained from prior Technnical Reportss and from work
port was ob
completed
d by independ
dent consultaants on behalff, and under tthe direction, of Rio Alto and Tahoe, aand by
work com
mpleted by Rio
R Alto and Tahoe perso
onnel under the guidancee of the authhors. Inform
mation
included herein deriveed from this work is citeed in the texxt of this Reeport, with reeferences listted in
7.0. The auth
Section 27 hors have mad
de all reasonaable effort to establish thee completeneess and authennticity
of the info
ormation pro
ovided in this Report.
Prior Technical Reportts filed on thee Shahuindo project

p includde:
Reesources Estim
mation, Shahuinndo Project, Peeru (Saucier aand Poulin, 20004)
mation, Shahuinndo Project, Peeru (Saucier aand Buchanan, 2005)
Reesources Estim
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Page17

port
Shhahuindo Goldd Project, Cajjabamba Proovince, Peru, NI 43-101 Technical Repport on Prelim
minary
Asssessment (W
Wright et al., 2010a)
Shhahuindo Goldd Project, Cajjabamba Proovince, Peru, NI 43-101 Technical Repport on Prelim
minary
Asssessment (W
Wright et al., 2010b)
Teechnical Reporrt on the Shahuindo Project, Cajabamba, PPeru (Tietz annd Kappes, 20011)
Updated Techniical Report on the Shahuindoo Project, Cajaabamba, Peru (Tietz and Deefilippi, 2012))
Teechnical Reporrt on the Shahuindo Heap Leeach Project (D
Defilippi, et. aal., 2012)
2.3 Qualified
Q Persons and Site Visits
perations andd Peru Country Manageer, Mr. Charlles V.

Mr. Tim Williams, Taahoes Vice President Op
Muerhoff,, Tahoes Vicce President Technical Seervices and M
Mr. Carl E. D
Defilippi of K
Kappes, Cassid
day &
Associates prepared th
his Technical Report. Each
h is a Qualifieed Person (Q
QP) by NI 43-101 definitionns.
Dates of site
s visits and
d specific secttions of the Report
R that thhe Qualified PPersons are rresponsible fo
or are
listed in Table
T 2.3-1.
Table 2..3-1 Quallified Personss Site Visitss and Reportt Responsibilities
QP Author
A Company Designatio
on S
Site Visit Sectio
on Responsibility
Sections 4,, 15, 16, 18, 20 and

Tahoe Multiple Site Visits 20144
Tim Williaams FAusIMM corresponding items in Secctions 1,
Resources
R Inc. & 2015
25, 26
Sections 2, 3, 5 through 12,, 14, 19,

Tahoe SME Registerred May 19-220, 2015
Charles V.. Muerhoff 21 through 24 and corresponding
Resources
R Inc. Member Novembeer 13-14, 2015
items in Secctions 1, 25, 26
Kappes, May 4-7, 2010

SME Registerred Sections 13, 17 and corresponding
Carl E. Deefilippi Cassiday & April 6-8 , 2010
Member items in Secctions 1, 25, 26
Associates Septembeer 2-3, 2015
2.4 Effective
E Dates
The effecctive date of this Techniccal Report is 01 January 2016. The effective date of the Shahhuindo
Mineral Resource
R estimate is the 15
1 April 2015
5. The effecttive date of tthe Shahuindo Mineral Reeserve
Estimate is
i 01 Novemb
ber 2015.
P
Page18

port
2.5 Units
U of Measurem
M ments
Unless otherwise speccified, all monetary dollars expressed inn this Report are in United
d States dollarrs ($).
Metal graades are expressed in graams per mettric tonne (g//t) and metal content is expressed inn troy
ounces. All
A units of measure, unlesss otherwise specified,
s are metric.
2.6 Abbreviat
A tions and
d Acronym
ms
A list of abbreviations
a and acronym
ms commonly used in this rreport is provvided in Tablee 2.6-1.
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Page19

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Table 2.6-1 List of Abb

breviations
Abbr. Description
D Ab
bbr. Desccription
$ United
U States off America dollars m meteers
microns
m m2 squaare meters
ADR adsorption-deso
a orption-refining m3 cubicc meters
Ag silver
s MC
CE max imum considereed earthquake
ARD acid
a rock drainaage ME
EM Mini stry of Energy aand Mines
Au gold
g mm
m millim
meters
AuEq gold-equivalent
g MM
MR Mini mum Mining Ro
oyalty
bcm bank
b cubic meteers Mo
oz millio
on troy ounces
CAPEX capital
c expendituure MP
Pa millio
on Pascal
Canadian
C Institute of Mining, Meetallurgy
CIM Mtt millio
ons of dry metrric tonnes
and
a Petroleum
Certificate
C for th
he Inexistence of
o
CIRA Mtt/y millio
on tonnes per yyear
Archaeological
A Remains
R
CN cyanide
c MW
W megaawatt
dmt dry
d metric tonne NA
AG non acid generating
DSHA deterministic
d seismic hazard asssessment NII 43-101 Canaadian National Innstrument 43-1001
Estudio
E de Impaacto Ambiental
EIA NP
PV net ppresent value
(environmental
( impact study)
GEU Geo
G Environmental Unit NSSR net ssmelter return
g/t grams
g per metriic tonne ozz troyy ounce
in inches
i PA
AG poteentially acid geneerating
ha hectare
h PG
GA peakk ground accelerration
HDPE high-density
h polyyethylene PLLS preggnant leach soluttion
hp horsepower
h pp
pm partss per million
IBC International
I Building Code PSSAD Peruu Central Zone
IGV impuesto
i generaal a las ventas PSSHA probbabilistic seismicc hazard assessm
ment
IP induced
i polarizaation QA
A/QC qualiity assurance and quality contro
ol
IRR internal
i rate of return
r QP Quaalified Person
k thousand
t RC
C reveerse circulation
Koz thousands
t of tro
oy ounces RM
MR rockk mass rating
kPA kilopascal
k RO
OM run- of-mine
kt thousand
t tonness SE
ENACE Nati onal Environmeental Certificatio
on Service
ktpd thousand
t tonness per day SE
ERNANP Nati onal Service of Natural Protectted Areas of the State
kV kilovolt
k SM
MT Speccial Mining Tax
kW kilowatt
k t dry m
metric tonne
lb pound
p (weight) tpd tonnnes per day
L/s liters
l per second
d t/yy tonnnes per year
kt thousand
t tonness UC
CS unco
onfined compresssive strength
ktpd thousand
t tonness per day UIIT tax uunit
kV kilovolt
k V volt
L/hr/m2 liters
l per hour per
p square meteer WGS
W Worrld Geodetic Sysstem
LOM life
l of mine
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3.0 RELIANC
R CE ON OTHER
O EXPERT
TS
This repo
ort has been prepared
p by Tahoe
T based on a high levvel assessmennt conducted on the Shahhuindo
mine in Peeru. The information, concclusions, opin
nions, and esttimates contaained herein aare based on:
In
nformation avvailable to Tah
hoe at the tim
me of preparaation of this rreport;
Assumptions,
A conditions,
c an
nd qualificatio
ons as set fortth in this repo
ort; and
Data,
D reports, and other infformation sup
pplied by thirrd parties undder the directtion of Tahoee.
The QPs as authors of

o this Reportt state that th
hey are Qual ified Personss for the Report as identiffied in
the Certtificate of Qu
ualified Perso
on for each author incluuded in Sectio
on 28.0. Reesults and opinions
included in
i this Reporrt that are deependent on information pprovided by persons outsside the employ of
Tahoe aree assumed to
o be current, accurate and
d complete aas of the effective date off this Report. The
precedingg notwithstanding, the QPss assume resp
ponsibility forr the informaation and connclusions conttained
in each off the QPs respective sectio
ons of this Reeport.
Reports received
r from
m other expeerts have been reviewed for factual eerrors by Taahoe. Any chhanges
made as a result of th
hese reviews did not invo
olve any alterration to the conclusions made. Hence, the
statementts and opinion
ns expressed in these doccuments are ggiven in good faith and in tthe belief thatt such
statementts and opinion
ns are not false and misleaading at the efffective date of this Reporrt.
None of the authors of this Repo

ort are experrts in verifyinng the legal status or ow
wnership of m
mining
ons and surfaace lands in Peru.
concessio As such,
s the autthors have rrelied on ouutside indepeendent
Peruvian legal counsell to verify th
he validity of Shahuindo SSACs miningg concessionss and surfacee land
p. The follow
ownership wing title opiniions were preepared on beehalf of the Co
ompany:
Tiitle Opinion on
o the Shahuindo Mining Concessions,
C pprepared by Pickmann and Ruiz (20155) for
Tahoe Resourcces Inc. (unpu
ublished)
Tiitle Opinion onn the Shahuinndo Surface Laands, prepareed by Pickmaann and Ruiz (2015) for T
Tahoe
Resources Inc.. (unpublished d)
Referencees to technicaal reports and data generaated by priorr owners of tthe Shahuindo property aand by
consultants in the employ of Rio Alto
A or Taho
oe used in thhe compilatio
on of this Tecchnical Report are
included in Section 27..0.
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port
4.0 PROPER
P RTY DES
SCRIPTIO
ON AND
D LOCAT
TION
4.1 Location
L
The Shahuindo Projecct is located in the districct of Cachachhi, province o

of Cajabambaa, departmennt and
region off Cajamarca, Peru. It iss situated ap
pproximately 59 kilometeers southeastt of the tow
wn of
Cajamarcaa and 14 kilo
ometers wesst of the tow
wn of Cajabaamba. The pproject is loccated at latituude 7
degrees 25
2 minutes south, longitu
ude 78 degrees 25 minutees west or U
Universal Traansverse Merrcator
(UTM) co
oordinates 9,158,000-Norrth and 807,0
000-East, Zonne 17S. Thee location of the project ssite is
illustrated
d in Figure 4.1
1-1.
Figure 4.1-1
4 Shah
huindo Projecct Location M
Map
4.2 Mineral
M Tenure
T an
nd Title
The Shahuindo projectt comprises one

o mineral right,
r Acumullacion Shahuindo, which inncludes 26 m
mineral
titles1 100
0% controlled
d by Tahoess wholly own
ned subsidiaryy, Shahuindo SAC, and haas an approxximate
area of 7,338.91 hectaares. Table 4.2-1 summariizes Shahuinddo SACs minneral claims thhat are includ
ded in
Acumulaccion Shahuind
do. The minerral claims are illustrated in Figure 4.2-1..
1
In accordaance with Supre eme Decree 014 4-92-EM, the Ac ccumulation is a procedure app proved by INGEMMET (a State--owned
company focused on the ex xploration, develo
opment and man nagement of prooperties and min
ning companies in Peru) where mineral
concessionss can be accumu ulated into one group
g only when these mineral cconcessions are adjacent to one another and ow
wned by
the same ow wner. The Accu umulation which in this case is called "Acumulaccion Shahuindo" is the newly cre
eated concession
n which
includes the
e 26 original minin
ng concessions.
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Tab
ble 4.2-1 Mineral Title
e Summary
Application
Ac
ctual Size Application
Concession
n Arrea Date off Grant
(h
hectares) Method
(hecttares)
San Jose 2..83 2.83 Stake-based July 2, 1917

Puma Shahuindo
o 2..33 2.33 Stake-based July 5, 1917
Pilacones 8 601.59 58.66 Grid-based January 29, 1998
Pilacones 7 30
00.8 3.45 Grid-based November 18, 1996
Pilacones 6 100
02.62 401.38 Grid-based ApriI 9, 19999
Pilacones 5 701.82 492.35 Grid-based April 21, 20003
Pilacones 4 100
0.26 20.93 Grid-based April 1, 19966
Pilacones 3 902
2.36 571.15 Grid-based August 31, 11997
Pilacones 2 701.85 246.85 Grid-based December 330, 1997
Perdida 3 601.96 548.65 Stake-based November 330, 1994
Perdida 2 391.11 357.92 Stake-based August 24, 11995
Perdida 1 601.72 570 Stake-based November 330, 1994
Nltrogeno 2 2 Stake-based August 7, 19922
Moyan 3 280
0.78 280.78 Stake-based November 330, 1994
Moyan 2 201.36 201.36 Stake-based November 330, 1994
Moyan 1 541.48 541.48 Stake-based February 16, 1995
Malvas 250
0.68 250.68 Stake-based September 226, 1959
Malvas 92 701.904 295.07 Stake-based August 6, 19999
Descubridora 4..25 4.25 Stake-based June 19, 1917
Antimonlo
A 2 2 Stake-based June 2, 1921
Algamarca
A 4 993
3.17 980 Stake-based March 8, 19991
Algamarca
A 2B 20
0.33 20.34 Stake-based February 16, 1995
Algamarca
A 2 200
0.56 200.56 Stake-based October 31,, 1994
Algamarca
A 1 501.35 501.35 Stake-based April 23, 19991
Acumulaclon
A 802
2.15 797.9 Stake-based March 31, 19987
Algamarca
A Selen
nlo 4..01 4.01 Stake-based August 22, 11981
P
Page23
Shahuindo Min
ne, Peru
NI 43-101 Tecchnical Report
SH
HAHUINDODEPOSIT
Figure
F 4.2-1 Mineral Claim Lo
ocation Map
Page24

port
The minin
ng rights and surface rightss are registered under thee name of Shaahuindo SAC in the governnment
title regisstry office of La Superinteendencia Naccional de los Registros Pblicos (SUN
NARP). The m
mining
claims havve no expiry date. All concessions aree subject to aan annual payyment of $3 pper hectare tto the
Peruvian government.
g A Peruvian law
l firm, Galllo Barrios Piickmann, issuued a legal oppinion to Tahhoe in
2015 veriifying the Co
ompanys titlee to the concessions withhin Acumulaccion Shahuindo (Pickmann and
Ruiz, 2015
5). All claimss are in good standing as of
o the effectivee date of thiss Report.
4.3 Surface
S Rights
R
Shahuindo
o SAC has accquired 381 surface
s rightss within the Shahuindo Prroject area to date, covering a
total areaa of approxim
mately 2,559 hectares. So
ome of thesee surface righhts were used
d to relocatee local
land owneers into new areas. Shahuindo SAC also
a acquired additional suurface rights o
outside the m
mining
concessio
ons for the saame process of relocatingg land ownerrs. Shahuindo
o SAC and D
Desarrollo Aggricola
Del Nortte (DAN) enttered into a service
s agreeement for thi s process; w
whereas DAN acquired thee land
outside th
he mining con
ncessions and
d will transfer the propert
rties to Shahuuindo SAC to
o be swapped
d with
land insidee the concesssions. A legal title opinion
n by Gallo Ba rrios Pickmannn confirms tthe land owneership
by Shahuindo SAC and
d DAN (Pickm
mann and Ruiiz, 2015). Thhe Company ccontrols sufficient surface lands
to accommodate the infrastructuree necessary to
o operate thee Shahuindo mining project as envisionned in
this studyy.
4.4 Informal
I Mining Activity
A
p of informal miners within the projecct area who aare exploitingg narrow veins on
There is a small group
the west side of the Algamarca
A antiicline. Shahuindo SAC is ppromoting annd participatinng in a round
d table
n with the Algamarca
discussion A informal minerrs to updatee the enviro
onmental, soccial and econnomic
baseline and
a to work on a sustainable solution
n to stop all informal minning activity aand replace itt with
other eco
onomic alternatives.
Since 200
04, Shahuindo
o SAC has su
ubmitted form
mal reports tto the Ministrry of Energy and Mines (MEM)
regarding the informall mining activvities in the mining
m concesssions. The informal mining activities in the
Algamarcaa area are outside
o the project
p area approved inn the Environnmental Impact Statemennt for
Shahuindo
o.
Until receently, a secon

nd group of in
nformal miners were activve in the nortthern portionn of the Shahhuindo
project, known
k locallyy as the La Chilca area. In
n August 201 5, Shahuindo
o SAC recoveered the La C
Chilca
area from
m the informall miners and the
t area is no
ow in possesssion of Shahuindo SAC.
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Page25

port
4.5 Environm
E mental Co
onsideratiions
4.5.1 Environme
E ental Regullations
The Geneeral Mining Laaw of Peru iss the primary body of law with regard to environm
mental regulation of
exploratio
on and minin
ng activities. The Generaal Mining Law
w is administeered by the MEM. A deetailed
descriptio
on of Perus environmental regulationss is found onn the MEM w
website at w
www.minem.go
ob.pe.
Dependin
ng on the levvel of projectt developmen
nt, MEM requuires exploraation and minning companies to
prepare an
a Environmental Impact Sttatement (EIA
A) Category II, Environmenntal Impact Sttudy Semi Deetailed
(EIAsd) Category
C II, Environmenta
E al Impact Stu
udy Detailed (EIAd) Cateegory III (seee Table 4.5-1), an
Environmental Impact Assessment,, a Program for Environm
mental Managgement and A
Adjustment, and a
mine clossure plan. Mining compan
nies are also subject to annnual environnmental auditts of operatio
ons by
the Organ
nismo de Evaluacin y Fisccalizacin Ambiental (OEFA
A).
The envirronmental an
nd legal frameework for th
he specific caase of the Shhahuindo pro
oject is detailed in
Section 20
0.0 of this tecchnical reportt.
Accordingg to Peruvian
n regulations D.S. 020-200
08-EM and R
R.M. 167-20088-MEM-DM, a DIACateggory I
covers drrilling from leess than 20 drill platform
ms within a 10 hectare aarea. An EIA
AsdCategoryy II is
applicablee to mining and
a exploration programss with eitherr more than 20 drill platfforms, explorration
areas greaater than 10 hectares, or construction
n of more thaan 50 meterss of undergro
ound developpment.
An EIAd is
i necessary for
f mining op
perations. All classificationns require the development of a comm
munity
involvemeent processess.
A new En
nvironmental Impact Stud
dy must be developed whhen additionaal, previously undisturbed areas
are propo
osed to be ad
dded to an operation
o perr Peruvian reggulations DS 016-93-EM, D.S. 028-20008-EM
and R.M. 304-2008-ME
EM-DM, revieew articles 15 and 16, an d must includde preparatio
on of an execcutive
summary and schedulin
ng of public workshops
w an
nd communityy participationn.
The Envirronmental Impact Study must incorporaate planned eexpenditure o

on environmeental program
ms at a
rate that is no less than one percen
nt of the valuee of annual prroduction of the planned o
operation. M
MEM is
required to review an
nd render a decision
d on the
t project w
within 120 daays, including initial notificcation,
and the in
nitial stage off the public co
onsultation process.
p Form
mal project aapproval may take from 8 to 12
months. Within this period, the applying com
mpany must o
organize public hearings aand worksho
ops to
present project data an
nd coordinatee the dates an
nd locations o
of such hearinngs with the MEM.
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port
Table
e 4.5-1 Su
ummary of Environment
E al Requirem ents for Miniing Exploratiion Program
ms
Classification
n Descriptiion Appliccation Require
ements
Caategory I Mineral exploration with less than 20 Required information as sho own in
En
nvironmental Imppact drill plattforms within a 10 ha area. Article 5 off Environmental Regulations
Staatement (EIA) for Mining EExploration.
Caategory II Mineral exploration with more than 20 Prepare an Environmental EEvaluation

En
nvironmental Imppact drill plattforms, exploration areas (EA) reportt as per the Environmental
Stu
udy Semi-Detaileed greater than
t 10 ha and/oor construction Regulations for Mining Explloration.
(EIAsd) of moree than 50m of un nderground
development.
Caategory III Projectss whose characteeristics, size Requires a tthorough analysis to review
En
nvironmental Imppact and/or loocation have thee potential to impacts andd propose corresponding
udy Detailed (EIAd)
Stu producee significant (quantitative or environmenntal managementt strategy.
qualitativve) negative envvironmental
impacts..
ny must also prepare and submit a clossure plan (Plaan de Cierre de Minas) fo
A compan or each component
of its opeeration. The closure plan
n must outline what conccurrent, closuure, and postt-closure meaasures
will be taaken to prottect the environment from impacts o
of the miningg operation. The closuree plan
includes a detailed cost estimate and schedule off expenditurees.
The Geneeral Mining Law

L of Peru has in place a system of sanctions orr financial pennalties that ccan be
levied agaainst a mining company wh
hich is not in compliance
c w
with the envirronmental reggulations.
4.6 Permits
P
Exploratio
on, constructtion and comm perations connducted to daate have beenn performed under
missioning op
the relevaant local and national perrmits. All peermits and liccenses to conduct operattions at Shahhuindo
either havve been received or are in
n the process of finalizatio n. The Company does no
ot anticipate d
delays
to the pro
oduction scheedule presentted in this Teechnical Repo
ort due to thee timing of reeceipt of neceessary
permits and
a licenses. Key permitts required fo
or mine ope rations are ssummarized in Table 4.6-1; the
status of each
e relevantt permit as it relates speciffically to the SShahuindo opperations is discussed in Seection
20.0.0 of this
t Report.
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Page27
Shahuindo Min
ne, Peru
Table 4.6-1 List of Permits and

a Status
Date of
Permit Status Approved By Governmentt Department Comments
Approval
A
CCurrently undertaking A
Archaeological Evaluation (PEA in
In Process Ministry of Cu
ulture
tthe Spanish acronym) fo
or this permit
Certificate for thee
Inexistence of Approved 11-Jul-13 CIRA No
o 173-2013 Ministry of Cu
ulture C
Certificate for the Inexxistence of Archaeologiccal Remains
Archaeological
CCertificate for the Inexxistence of Archaeologiccal Remains -
Remains (CIRA) Approved 15-Sep-15 CIRA No
o 232-2015 Ministry of Cu
ulture
FFour Rescued Areas
Approved 29-May-15 R.D. No 125-2015-DDCCAJ/MC Ministry of Cu

ulture A
Archaeological Monitorring Plan (PMA)
Approved 10-Sep-15 R.D. 339
9-2013-MEM/AAM Ministry of Eneergy and Mines EEnvironmental Impact A
Assessment
FFirst Technical Sustentaatory report of Environnmental

Approved 18-Dec-14 R.D. 613
3-2014-MEM-DGAAM Ministry of Eneergy and Mines
IImpact Assessment (ITSS-1-EIA)
Environmental
nt
Impact Assessmen
SSecond Technical Susteentatory report of Envirronmental
Approved 07-Jul-15 R.D. 265
5-2015-MEM-DGAAM Ministry of Eneergy and Mines
IImpact Assessment (ITSS-2-EIA)
In Process Ministry of Eneergy and Mines EEIA modification (MEIA

A)- For Phase 2 Expansio
on
Mine Closure Plan
n Approved 10-Mar-15 R.D No 132-2015-MEM-DGAA
AM Ministry of Eneergy and Mines
on No. 145-2015-
Resolutio CConstruction of the components of beneficiattion to the
Beneficiation Approved 14-Apr-15 Ministry of Eneergy and Mines
MEM/DG GM/V SShahuindo Project of 100,000 TMD
Concession
Approved 25-Nov-15
2 R.D No. 2468-2015-MEM/DGM
M Ministry of Eneergy and Mines LLicense to Operate Pro
ocessing Plant
Permanent Powerr NNot required at start-uup due to first two yearr of power
Not required
Concession ssupplied by generators.. Will apply when requuired.
Water usage on No. R.D No 655.2015-

Resolutio
Approved 16-Jul-15 National Wateer Authority
permits ANA-AA AA.M
Water License Approved 12-Nov-15 R.D No 1157-2015-ANA-AAA..M National Wateer Authority
Easements and NNot required at start-uup due to first two yearr of power
Not required
rights-of-way ssupplied by generators.. Will apply when requuired.
District and
Provincial
In Process Various IIn process and obtained
d when required.
municipality
licenses
Resolutio
on No 0587-2015-MEM
M-
Mining Plan In Process 27-Nov-15
2 Ministry of Eneergy and Mines A
Authorization for Consstruction, awaiting Mining Plan.
DGM/V
Operations Permits In Process Various IIn process and obtained

d when required.
Page28

port
4.6.1 Environme
E ental Laws
Under Leegislative Decree 1013, app
proved on 14
4 May 2008, tthe government created tthe Ministry o
of the
Environment to coord
dinate all environmental matters
m at thee executive leevel. Currenttly, the Ministry of
onment is chaarged with th
the Enviro he implementtation of the N
National Environmental Policy and direection
of the envvironmental control
c regime, among oth
her responsibbilities.
The Minisstry of the Environment works

w in coord
dination with different apppointments to
o the ministryy such
as the National
N Servvice of Natu
ural Protecteed Areas of the State ((SERNANP) and the Naational
Environmental Certificcation Servicee (SENACE) for
f the purpo
oses of impleementing susttainable investtment
onsibilities forr review and approval
and respo a of detailed Enviro
onmental Imppact Studies ((EIA-d).
4.6.1.1 Environm
mental Lega
al Frameworrk Applied tto Mining A
Activities
The Envirronmental Reggulations for the
t Activities of Exploitationn, Processing, Transport, A
Auxiliary Workks and
Developmeent of Mining and Metallurrgic Activities are
a the contrrolling regulattory acts thaat establish, aamong
others, the environm
mental requirrements necessary conduct mining activities witthin the Perruvian
territory.
Under thiis legal frameework, the General Bureaau of Environ mental Affairrs (DGAAM) of the Ministry of
Energy an
nd Mines (ME
EM) is the ressponsible govvernmental aggency to apprrove the envvironmental sttudies
required to
t undertake mining activities in Peru, while
w the Envvironmental Innspections annd Auditing B
Bureau
(OEFA) of
o the Ministrry of the Envvironment is currently thee agency respponsible for tthe inspection and
auditing of
o mining projects and operations in order to
o confirm co
ompliance w
with environm
mental
obligation
ns and related
d commitments.
4.6.1.2 Exploratiion Activitie

es
Environmental aspectss specifically related to ex overned by tthe Regulations on
xploration prrojects are go
Environmental Protecttion for the Development
D of Mining Exxploration Acctivities underr Supreme D
Decree
020-2008-EM. Pursuaant to these regulations, depending o
on the scale and impact o
of the explorration
activities to
t be conduccted, explorattion projects are classified into the follo
owing two caategories:
Category
C I: Before conducting explo oration activitties under thhis category, title holderrs are
reequired to submit a DIA and have it approved by th e DGAAM.
Category
C II: In
n order to conduct
c exploration activvities under tthis categoryy, title holderrs are
reequired to haave an EIAsd approved
a by the
t DGAAM..
The appro
oval of the co
orrespondingg environmental certificatee does not grrant the titlehholder the rigght to
start cond
ducting explo
oration activitties, given thaat titleholderss of mining co
oncessions arre also requirred to
P
Page29

port
obtain all governmentaal consents an

nd permits legally requiredd and access and usage rigghts granted bby the
landowneer to use the surface
s lands..
4.6.2 Mine
M Deve
elopment, Exploitatio
E on and Proccessing Activities
Pursuant to the Enviroonmental Reggulations for thhe activities oof Exploitationn, Processing, Transport, Auuxiliary
Works and Developmeent of Mining and Metallurrgic Activities, prior to connducting miniing and proceessing
activities, titleholders of
o mining con
ncessions musst have an EIA
A approved.
4.6.3 Mine
M Closu
ure and Sitte Remedia
ation
4.6.3.1 Exploratiion Activitie
es
Regardingg environmental remediatio
on of areas afffected by mi ning explorattion activities, the Regulatioons on
Environmeental Protectionn for the Deveelopment of Mining
M Exploraation Activities requires titleeholders of m
mining
exploratio
on projects to
t conduct progressive closure, finaal closure annd post clossure program
ms as
outlined in
i the corressponding envvironmental study.
s Any aamendment o
of the closure measures or its
terms req
quires the prio
or approval of
o the DGAAM.
4.6.3.2 Mining Developmen

D ocessing
t, Exploitation and Pro
Prior to the start-up of mining activities,
a inclluding mine developmentt, exploitatio
on and proceessing,
titleholders are requirred to have a Mine Closurre Plan, duly approved by the DGAAM
M prior to carrying
out activitties.
Peruvian legal framew

work coverin
ng Mine Clo
osure Plans includes a nnumber of ffinancial and legal
requiremeents intended
d to ensure th
he completio
on of the closure obligations by the titleholders of m
mining
projects. In case of no
on-compliancee, these financcial and legal requirementts allow the m
mining authorrity to
seize the financial guarrantees from titleholders
t and
a complete the Mine Clo
osure Plans ass approved.
4.6.4 Existing
E En
nvironmenttal Conditiions
There aree surface distu
urbances asso
ociated with informal miniing activity w
within the projject area, prim
marily
in the Alggamarca anticcline and La Chilca areas. The Comppany is curreently conductting environm
mental
field stud
dies as theree is an expeectation that some level of environm
mental contaamination maay be
associated
d with these sites.
s
4.7 Royalties
R , Taxes and Fees
4.7.1 Maintenan
M ce Fees
Pursuant to article 39
9 of the Gen
neral Mining Law, titleho lders of mining concessio
ons pay an aannual
nce Fee (Derrecho de Vigeencia) of $3.0
Maintenan 00 per hectarre. The mainntenance fee is due by 300 June
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Page30

port
and is effeective for thee following yeear. Failure to

t make paym
ments for tw
wo consecutive years causees the
terminatio
on (caducidad
d) of the miining concesssion. Howeveer, accordingg to article 559 of the Geeneral
Mining Law
w, the paymeent for one yeear may be deelayed with ppenalty and thhe mining conncessions rem
main in
good stan
nding. The outstanding
o paayment for th
he past year can be paid on the follow
wing June 30 along
with the future
f year. Maintenance
M fees for conccessions held in Acumulacion Shahuindo
o are currentt.
4.7.2 Minimum
M Production
P n Obligatio
on
Legislativee Decree 101
10, dated 09 May 2008 and Legislative Decree 10544, dated 27 Juune 2008 ameended
several arrticles of the General Mining Law regarding the Minnimum Produuction Obligaation, establishhing a
new regim
me for compliiance (New MPO
M Regime)).
Accordingg to the New

w MPO Regim
me, titleholders of metallicc mining conccessions mustt reach a minnimum
level of annual
a producction (Minimum Production) of at leaast one Tax Unit2 or UIT (S/. 3,850 per
hectare) and
a three UIT
Ts within a period
p of ten years. The t en year perio
od begins on January 1st o
of the
year follow
wing grantingg of the conceession.
In the casse of mining concessions

c that
t were graanted on or bbefore 10 Occtober 2008 until the tenn year
term for reaching Min
nimum Produ
uction establiished by the New MPO Regime elapses on 01 Jaanuary
2019, theese mining co
oncessions will
w be subjectt to the form
mer provisionns of the Geeneral Miningg Law.
Failure to
o comply with
h the minimu
um productio
on requiremeents of the N
New MPO Reegime obligatees the
concessio
on holder to pay
p a penalty and may resu
ult in the term
mination of thhe concessionns.
4.7.3 Royalties,
R OSINERGM
O MIN Contrribution an
nd OEFA C
Contributio
on
4.7.3.1 Royaltiess
In June 20
004, Perus Congress
C auth
horized a royyalty paymentt structure ppertaining to mining operaations.
Congress further mod
dified the ro
oyalty regime under Law No. 29788 which went into effect o
on 01
October 2011 (Modified Mining Ro
oyalty or MM
MR). The MM
MR is applied to quarterly operational profit
(i.e., operrating margin)), calculated by dividing the
t quarterlyy operating pprofit by the income geneerated
from the quarterly salees of the mining product. The amountt to be paid in royalties is the greater o
of the
quarterly operation prrofit rate, which ranges fro
om one perceent to 12%, o
or one percent of the revvenues
generated
d by quarterlyy sales. In thee case of the small scale m
mining titleho
olders, the mining royalty is set
to zero. The paymen
nt of the min
ning royalty is consideredd an expensee when determining corpporate
income taax in Peru.
2
Pursuantt to Supremee Decree 304-2013-EF, dateed 11 Decem
mber 2013, thhe Tax Unit w
was set at S//.3,850
(approximaately $1,360)
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4.7.3.2 OSINERG
GMIN Conttribution
El Organismo Supervissor de la Inveersin en Energa y Mineraa (OSINERGM
MIN) is Peru's state energgy and
mines invvestment reggulator whicch has the mission to regulate, supervise and oversee naational
compliancce with legal and technical dispositionss related to aactivities in thhe electricity, hydrocarbo
on and
mining in
ndustry secto
ors, as well as complian
nce with legaal and technnical requirements conceerning
environmental conservvation and prrotection in the developm
ment of these activities. OSSINERGMIN is the
governmeent agency off record to in
nspect and au
udit compliannce with safetty, job-relateed health and mine
developm
ment matters.
Supreme Decree 128--2013-EF, pub

blished on 19
9 December 22013 establisshed the ratee applicable fo
or the
GMIN contrib
OSINERG bution. This payment
p is made by all largge and mediuum scale mining titleholderrs and
is calculatted on the value of the mo
onthly operatting costs, co rresponding tto the activities directly reelated
to OSINE
ERGMIN minu
us the Valued
d Added Tax and
a the Muniicipal Promottion Tax.
OSINERGMIN rates
r by year: 2014: 0.2
21%
2015: 0.19%
2016: 0.16%
4.7.3.3 OEFA Co
ontribution
El Organismo de Evalu
uacin y Fiscaalizacin Amb
biental (OEFA
A) is the govvernment agency of record
d that
inspects and
a audits mining
m projeccts operation
ns in order to secure co
ompliance w
with environm
mental
obligation
ns and related
d commitments.
The Supreeme Decree 130-2013-EF,, published on

n December 19, 2013, esttablished the rate applicabble for
the OEFA
A Contributio
on. This paym
ment is madee by all large aand medium scale mining titleholders aand is
calculated
d on the valu
ue of the mo
onthly costs correspondin
c ng to all activvities directlyy related to O
OEFA
minus thee Valued Addeed Tax and th
he Municipal Promotion T
Tax. The OEFFA rate is currently set at 00.13%
for 2016.
4.7.4 Ownership
O p of Mining Rights
Pursuant to
t the Generral Mining Law
w, mining righ
hts may be forrfeited only ddue to a numbber of enumeerated
circumstaances provideed by law (i.ee., non-paymeent of mainteenance fees aand/or nonco
ompliance witth the
Minimum Production Obligation). The right off concession holders to sell mine prroduction freely in
world maarkets is estab
blished. Peru is party to agreements
a w
with the Worrld Bank Multtilateral Investtment
Guaranteee Agency and
d with the Ovverseas Privatte Investmentt Corporationn.
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4.7.5 Taxation
T and
a Foreign
n Exchange
e Controls
A recent modification of the tax law
w approved by
b the governnment reduceed corporate taxes beginnning in
5. The law progressively decreases
year 2015 d thee tax from 300% (applied inn 2014) to 266% (2019 onw
ward).
The new law reducess the rate off corporate income tax aand increasess the tax ratte on dividennds as
summarizzed in the follo
owing schedu
ule in Table 4.7-1.
Table 4.7-1 Corporate I ncome Tax

Fiscal
F Years Corp
porate Income
e Tax Dividends
2015 2016 28% 6.8%
2017 2018 27% 8.0%
20
019 forward 26% 9.3%
There aree currently no

o restrictionss on the abilitty of a comppany operatingg in Peru to transfer divid
dends,
interest, royalties
r or foreign
f curreency in or ou
ut of Peru orr to convert Peruvian currrency into fo
oreign
currency.
Congress has approveed a Tempo

orary Net Asssets Tax, w
which applies to companiies subject to the
General Income Tax Regime.
R Net assets are taxed at a ratee of 0.4% on tthe value excceeding one m
million
Peruvian soles (approx
ximately $345,000). Taxp
payers must file a tax retturn during the first 12 daays of
April and the amountss paid can bee used as a crredit against IIncome Tax. Mining com
mpanies whichh have
not starteed production
n and those in
n their first yeear of operattion are exem
mpt from the ttax.
The Com
mpany is also subject
s to a Special
S Miningg Tax (SMT) which is applied to operaating income based
on a sliding scale witth progressivve marginal rates rangingg from 2% tto 8.4%. Thhe SMT has been
considereed as an incom
me tax for thee purposes off this study.
The Tax Administration Superinteendent is thee entity emppowered under the Peruvvian Tax Code to
collect federal government taxes. The Tax Ad
dministration Superintenddent can enfo
orce tax sancctions,
n result in finees, the confisccation of goo
which can ods and vehicles, and the closing of a taxxpayers officces.
4.7.6 Worker
W Pa
articipation
n
ny that generaates income aand has moree than twentyy employees on its
Under Peeruvian law, every compan
payroll is obligated to grant a sharee of its profitts to its workkers. For minning companies, the perceentage
of this pro
ofit-sharing beenefit is eightt percent of taxable
t incom
me. The profitt-sharing amo
ount made avaailable
to each worker
w is limited to 18 tim
mes the workkers monthlyy salary, basedd upon their salary at the close
of the preevious tax yeaar.
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port
4.7.7 Regulatory
R y and Supervisory Bodies
The five primary
p agenccies in Peru th
hat regulate and
a supervise mining comppanies are:
1. Ministry
M of Eneergy and Minees (MEM),
2. National
N Institu
ute of Conceessions and Mining Cadastrral (INGEMM
MET),
3. Su
upervisory En
ntity for the In
nvestment in Energy and M
Mining (OSIN
NERGMIN),
4. Laabour Ministrry (MINTRA) and
5. En
nvironmental Inspections and
a Auditing Bureau (OEFFA) of the Minnistry of the EEnvironment..
The MEM
M promotes th
he integral an
nd sustainablee developmennt of mining aactivities, as w
well as regulattes all
the activitties in the Eneergy and Minees sector.
The INGE
EMMET is thee Governmen
nt Entity in charge
c of grannting mining concessions, which entitlees the
concessio
on holder thee right to exp
plore and exp
ploit the areaa in which bo
oundaries succh concessionns are
located.
GMIN and MINTRA oversee regulatoryy compliance with safety, job-related hhealth, contraactors,
OSINERG
and minee development matters, while OEFA
A oversees rregulatory co
ompliance w
with environm
mental
regulation
n, investigatingg and sanctioning the breaach of any envvironmental o
obligation.
4.8 Risks
R thatt may affe
ect Accesss, Title, o
or the Rig
ght or Ab
bility to
Perform
P Work
W
Natural resources
r exploration, deevelopment, production
p aand processinng involves a number of risks,
many of which
w are beyyond the Com
mpany's conttrol. Project and businesss risk factors and discussio
on on
these aree included in the Compan
nys quarterlyy Managemennt Discussionn and Analyssis and the A
Annual
Informatio
on Forms filed on SEDAR.. Such risks include the fo
ollowing:
Changes
C in thee market pricee for mineral products.
Community
C grroups or non
n-governmenttal organizatiions that mayy initiate or undertake acctions
th
hat could delaay or interrup
pt the Compaanys activitiess at Shahuinddo.
Although
A the Company beelieves it has a good undeerstanding off the Shahuinndo deposit aand is
su
uccessfully op
perating the nearby La Arena
A mine, the Companny has no opperating histo
ory at
Sh
hahuindo.
Fu
uture constru
uction and op
perating costts may differ from those ccosts projectted in the finnancial
sttudy for Shahuindo.
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While
W the Co
ompany conssiders the reegulatory envvironment inn Peru to bee very stablee, the
Companys
C acttivities are su
ubject to envvironmental llaws and reggulations thatt may changee over
tim
me.
The Companyy requires numerous perm
mits in orderr to conduct exploration, developmennt and
mining
m activitiees at Shahuin
ndo. Delays in obtaining tthe final perm
mits and licennses necessary for
su
ustained operrations or failure to comply with the teerms of any ssuch permits and licenses could
haave a materiaal adverse effeect on the Shaahuindo projeect.
Title to the Companys
C mineral properrties at Shahuuindo may bee subject to prior unregisstered
aggreements, trransfers or claaims or defeccts.
Changes
C in tax
xation legislatiion or regulattions in Peru..
The foregoing notwitthstanding, the Companyy believes thhat there arre no significcant risks to
o the
Shahuindo
o project in regards to surrface and concession title, the ability to
o access the pproject, the reeceipt
of the rem
maining permits and licenses, or the Co
ompanys abil ity to perform
m the work aas described iin this
technical report.
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5.0 ACCESS
A SIBILITY
Y, CLIMATE, LOCA
AL RE
ESOURC
CES,
INFRAST
I TRUCTU URE AND PHYSSIOGRAP
PHY
5.1 Accessibi
A lity
The Shah
huindo Projecct is located
d in northern
n Peru apprroximately 9770 kilometerrs by road nnorth-
northwest of Lima. The project sitte can be acccessed from LLima by traveeling north on Highway 1 (Pan-
o Ciudad de Dios,
American Highway) to D then easst on Highwayy 8 to Cajamarca. The sitte is approxim
mately
meters from Cajamarca
130 kilom C viaa asphalt-paveed highway ( 100 kilometeers on Highw
way 3N), and ggravel
and dirt roads. The ro
oute from Cajamarca to Sh
hahuindo is shhown in Figurre 5.1-1.
Figure 5.1-1 Shahuindo Road Rou

ute from Cajamarca
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There aree several seap

ports availablee to the Com
mpany for equuipment impo
ort the Portt of Callao in Lima,
Port of Paita (northerrn Peru) and Port Salaverrry at Trujillo . There are daily flights between Lim
ma and
Cajamarcaa on Peruvian
n national airlines.
5.2 Climate
C
Climate in on. It is coldd and dry during the dry season and hhumid
n the area is typical of the sierra regio
during th
he rainy seasson. Rainfalll typically occcurs betweeen October and April (w
wet season), with
occasionaal sporadic showers in the other month
hs. The averrage annual raainfall is about 1000mm w
with an
extreme wet year havving a rainfalll of 1,550mm
m and an exttreme dry yeear receiving 449mm. Thhe dry
season mo
onths are Maay through September.
The averaage daily temperature is 15.7C, reachiing 23.1C duuring the day and decreasiing to 7.5C in the
night. The average min
nimum tempeerature is 9.7C and the avverage maxim
mum temperaature is 22.3C
C.
The prevaailing wind dirrection is east-northeast with

w speeds raanging from 0 to 3.1 m/s.
Exploratio
on and mining can be con
nducted year round with minimal impaacts from thee weather, thhough
plastic ovverliners (rain
ncoats) will bee used to lim
mit infiltrationn of precipitattion into thee leach pads d
during
the wet seeason.
5.3 Local
L Ressources & Infrastru
ucture
Manning requirements
r s for the projeect are sourcced accordingg to the comppanys emplo
oyment policyy, with
priority given to the local area, then expandingg to the surrrounding com
mmunities, inccluding Cajabamba,
wheneverr possible. More experien
nced and tech
hnical personnnel have beenn recruited from Cajamarcca and
from thro
oughout Peru. The projectt currently em
mploys 1,310 people, withh 73% of employees from w
within
Cajamarcaa province.
Power for the operations will initiaally be from diesel

d generattors located o
on site. As tthe mine ram
mps up
productio
on, the site will
w be connectted to the traans-national 2220 kV transm
mission line w
which was reccently
completed
d and passes within 3 kilom
meters of thee site. It is cuurrently plannned to connect to line pow
wer in
the secon
nd half of 2017, via a substation partiaally built by SSulliden which will require upgrading. From
2018 whille processingg 36 ktpd, thee project will consume upp to a maximuum of approxximately 45 m
million
kWh of power
p per yeaar. Maximum
m total deman
nd power for the project iss approximattely 7.4MW. W
When
the substaation is comp
pleted, it will have
h an installled capacity o
of 40 MW.
The Shahuindo heap leach project will require a water sup ply for mininng; processingg, camp and other
support faacilities. Waater demand will
w be highesst during thee dry season. During an avverage dry seeason,
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Anddes predicted
p the maximum water
w requirem
ment to be uup to 12.7 liteers per seconnd (L/s) in thhe dry
season for the initial phase
p of operrations (Andd
des, 2015j). FFrom Januaryy 2018, when the project rramps
up to 36 ktpd and th
he primary leeach pad is commissionedd (Pad 2B), tthe operatingg flow for leaaching
activities is estimated to be as high as 39.9 L/ss (Anddes, 20015c). Mostt of this wateer will be reccycled
through the closed circuit leach pad
d - pregnant solution
s pondd - adsorptionn circuit - barrren solution pond
- leach paad.
The makee-up water required by the heap leach system during the ddry season, particularly d
during
abnormally dry years, will
w be met frrom three sou
urces:
1. A 12-inch diam
meter water well
w with capaacity of 15 L/ss,
2. Frresh water fro
om a year-ro
ound spring with
w flows of fo
four to six L/ss, and
3. Water
W stored in reservoirs which accum
mulate rainfall during the w
wet season.
5.4 Physiogra
P aphy
The Shahuindo properrty is located on the westt side of the Condebambaa River valleyy. The topoggraphy
om rolling hilllsides to steeep ravines. Elevation
varies fro E acro
oss the projeect area variees from 2,4000m to
3,000m ab
bove sea leveel.
The projeect area is claassified as neo

o-tropical Perruvian Yungaas by the W
World Wildlife Fund and inccludes
sub-zoness such as:
Very humid tropical mounttain forest. MayM be prese nt in isolatedd inaccessible areas, but original
veegetation hass currently not
n been ideentified. Thee sub-zone is characterized by seco ondary
su
uccessive-stagge colonist sp
pecies that havve replaced tthe original fo
orest.
Humid
H tropicaal mountain fo
orest. Coverrs 60 percentt of the projeect area. Orriginal vegetattion is
reemnant and confined
c to ravines
r and steep
s hillsidess. The majo ority of the ssub-zone has been
cleared for cultivation of po
otatoes, oca, mashua, tarwwi, barley, bro
oad beans, andd green beans, and
fo
or cattle grazing.
Lo
ow, dry, trop pical mountaain forest. Covers
C 40 peercent of thee project areea, the majorrity of
which
w falls witthin the loweer part of the Shahuindo gorges, in thhe area nearr the Condebbamba
River. The arreas are typiccally cultivated using irrigaation. Cropss include cornn, potatoes, broad
beeans, wheat, green
g beans, vegetables an
nd fruits.
Valley inh
habitants aneecdotally repo
ort the pressence of deeer, foxes, rabbbits, vizcachhas (rodents)), and
skunks.
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5.5 Seismolo
S gy
Peru is an
n area with high
h seismic and tectonic activity withh earthquakes being moree intense neaar the
coastal reegions and deccreasing gradually towardss the mountaains and junglee regions.
Accordingg to the seissmic zoning map

m of Peru''s National B
Building Regulations, the SShahuindo m
mine is
located in
n Zone 3 whiich correspon
nds to moderately high seeismic activityy. Anddes SA
AC has estimaated a
peak grou
und accelerattion (PGA) of
o 0.251g for this particulaar zone, baseed on the prrobabilistic seeismic
hazard asssessment (PSHA) developed by Anddes (2015g, 20115i) for Shahuuindo mine, w
when consideering a
50 year useful life with
h a return perriod of 475 yeears and 10%
% of overage. T
The classificaation of the grround
at the fou onal Building Code
undation levell is of Type B (rock) accorrding to the sstandards of tthe Internatio
(IBC) (Intternational Code Council,, 2012). Furthermore, theere are addittional PGA vaalues estimatted by
Anddes fo
or return perriods of 100, 200, 475, 97
75 and 2475 years, as sum
mmarized in T
Table 5.5-1, w
which
are the reecommended design param
meters to be utilized for thhe seismic design of structtures.
Table 5.5-1 Summary of PG

GA Values fo
or Different R
Return Perio
ods
Geograph
hical
Return
n Period (yearrs)
Coordina
ates
Longitude
L Latitude 100 200 475 975 2475
-78,187 -7,615 PGA 0.143 PGA 0.184 PGA 0.251 PGA 0.320 PGA 0.425
Accordingg to the deterministic seissmic hazard assessment

a (D
DSHA) develo
oped by Andd
des (2015i) fo
or the
Shahuindo
o mine, Anddes estimatees a PGA of 0.286g geneerated by the intraslab ssubduction acctivity
between the
t Nazca and Continentaal plates. This value is high er than the pprobabilistic P
PGA for a 4755 year
return peeriod; howevver, it is important to no
ote that estim
mating a retuurn period fo
or a deterministic
analysis iss unknown. Fo
or a conservaative assumpttion, a value o
of 0.286g cann be used as P
PGA with a rreturn
period of 475 years orr lower.
The Maxiimum Consid

dered Earthqu
uake (MCE) estimated fro
om the PSHA
A for a return period of 2475
years is 0.425g,
0 which is consistentt with the Maaximum Creddible Earthquuake (MCE) eestimated from
m the
DSHA wh
hich indicatess a PGA of 0.429g.
0 For critical
c analyssis, the Internnational Com
mmission on Large
Dams (IC
COLD, 2010)) and National Earthquaake Hazard R
Reduction Prrogram (FEM
MA, 2009) crriteria
recommend using the MCE estimatted from the DSHA calcu lated for the 84th percenntile; in this caase, it
results in a PGA of 0.5
578g. All valuees are calculatted for a classs B site (rockk) according tto IBC.
5.6 Populatio
P on Centerrs
Accordingg to Perus National

N Instittute of Statisttics and Inforrmation (Cennsus 2007), Shhahuindos D
Direct
Area of Influence (DA
AI) has 3,954
4 inhabitants, distributed iin 14 towns. An analysis of the popuulation
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structure by age reveeals a significant majorityy of people under 25 yeears old, whhich increasees the
proportio
on of person
ns of workingg age. The distribution
d bby sex show
ws a slight prevalence of male
population.
On average, 80% of
o household
ds are dediccated to aggricultural suubsistence aactivities thatt are
complemeented with livvestock and mining.
m
Low wagees and lack of

o opportunitty in the cou
untryside aree determinantts of emigrattion towards main
cities succh as Cajamarca, Trujillo
o or Lima. Young
Y peoplle move tem
mporarily in search of qquality
education
nal services. Conversely,
C im
mmigration iss low, though people from
m nearby townns do come tto the
area in search of temporary jobs.
5.7 Local
L Infrrastructure and Se
ervices
All the su
upport infrasttructure is either built orr in process of constructtion to suppo
ort the oxidee gold
mining an
nd extraction activities at Shahuindo. All workingg areas of thee mine are aaccessible by well-
maintained dual lane grravel roads.
The site will

w be connected to the Peru
P power grid in mid-20017, before prroduction inccreases to 36 ktpd.
The energgy demand fo
or the first tw
wo years of prroduction doees not warrant the use off line power aand all
facilities will
w be connected to the internal 22.9 kV power neetwork supplied from a suubstation pow
wered
by generaators located near the proccess plant.
The projeect is consideering three leach pads (1A

A, 2A and 2B)). The initial ddump leach ppad constructtion is
currently ongoing, witth Pad 1A complete and constructionn started onn Pad 2A to receive ore from
mining in 2017. Pad
d 2B construcction has beeen initiated uusing mine w
waste to consstruct the sttability
platform and
a solution ponds.
p
An independent analyytical and assay laboratoryy and metalluurgical laboraatory located

d at the La A
Arena
mine will be used to prrocess all min
ning and metaallurgical sampples.
Two industrial water purification

p pllants have been installed t o treat 105 m3/hour to a suitable qualiity for
discharge to the envirronment, onee at the plantt site (25 m3 /hr) and a seecond at thee camp (80 m3/hr).
Other associated facilities in the process of construction
c are a reageent warehousse, workshopp and
offices.
ure constructted to date includes an eexplosives maagazine, a tem

Other site infrastructu mporary workkshop
and securrity guard cam
mp. A new mine
m camp is currently
c undder constructtion with facilities to housse 200
people an
nd a kitchen/m
mess hall thatt can cater for 750 peoplee. The camp w
will be expand
ded to 500 beds in
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2017. Office
O buildings and train
ning infrastructure are allso currentlyy under construction with an
estimated
d completion date of January 2016.
porary officess currently in use (formeer Sulliden eexploration camp) all havve phone and
The temp d data
connectio
on via microw
wave link to a Peruvian telephone
t neetwork with a total available bandwid
dth of
12 Mb/secc. A 3G cellular phone serrvice has beeen installed unnder contractt with a majo
or Peruvian seervice
provider and
a 3G signall is available across
a the sitee. These systeems will be trransferred to
o the new offiices in
early 2016
6.
A water well
w has been
n installed forr the camps, processing pplant, worksho
op and otherr facilities. Thhe 12-
inch diameter well is 300m
3 deep an
nd located app
proximately 5500m above aan 18 m3 watter storage po
ond at
the foot of
o the Algamaarca anticline. The well haas a nominal ccontinuous flo
ow capacity o
of 15 L/s.
Sewage an
nd waste watter managemeent facilities have
h been insttalled.
The locattion of waste dumps, tailin

ngs storage, leach pads, prrocessing plant and otherr infrastructurre are
discussed further in Seection 18.0.
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6.0 HISTOR
H RY
Mining in the Shahuindo area has occurred inttermittently o
over the passt few centurries, with thee first
mining acttivities condu
ucted by the Spanish afterr their conqu est of the Incca Empire in the 1530s. IIt was
not until 1945 that mo
odern mining exploration was
w conducteed in the areaa.
6.1 Ownersh
O ip History
y
Legal righ
hts to the min
neral leases of
o Shahuindo were in disppute between 1996 and 20009. A numbber of
Peruvian, Mexican and
d Canadian co
ompanies havve been invollved in numerous legal prrocesses that were
eventuallyy settled in 2009
2 with 100
0% ownership being legallly registered to Shahuindo
o SAC (prevviously
Sulliden Shahuindo SAC
C).
Sulliden Shahuindo
S SA
AC entered into
i a Transfer of Minerral Rights andd Properties Contract, nnamed
Contrato de
d Transferenncia de Propieedades Mineraas (the Definnitive Agreem
ment), with Compaia M
Minera
Algamarcaa S.A. and Ex
xploraciones Algamarca
A S.A
A covering 266 mineral claims and 41 suurface rights, w
which
was formaalized by public deed dated
d 11 Novem
mber 2002.
Subsequently, the veendors (Com

mpaia Minerra Algamarcaa SA and EExploracioness Algamarca SA),
d by new stockholders and
controlled a other co
ompanies of the same grroup, challengged the Definitive
Agreemen
nt and launch
hed a numbeer of judicial proceedings against Sullidden Shahuind
do SAC. Suulliden
Shahuindo
o SAC also commenced
d legal proceeedings to cconfirm their rights und
der the Deffinitive
Agreemen
nt and a number of other judicial proceeedings to prrotect its titlee to the Shahuuindo properrty. In
2009, Sulliden Shahuind
do SAC prevailed and maintained 100%
% of the mineeral claims and
d surface righhts.
In Augustt 2014, Rio Alto

A Mining Ltd.
L acquired all of the ouutstanding shhares of Sullid
den Gold Ltd
d. and
became the
t owner of
o Shahuindo mineral claim
ms and surfaace rights unnder their Peeruvian subsiidiary,
Shahuindo
o SAC.
In April 2015,
2 Tahoe completed an
n acquisition of Rio Alto Mining Ltd., acquiring conntrol of Shahhuindo
SAC and the Shahuind
do mineral claims and surrface rights. Shahuindo SAC remains as Tahoes w
wholly
owned op
perating comp
pany for the Shahuindo
S project.
6.2 Explorati
E on Historry
Exploratio
on and minin
ng activities have
h onducted on the Shahuinndo leases since 1945. T
been co These
exploratio
on activities are
a summarizeed in Table 6.2-1.
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Table
T 6.2-1 Summary of Prior Exp
ploration Acttivities on the
e Shahuindo Property
Pe
eriod Operatorr Activiities
Exploration leadingg to the disscovery and o operation of aan

undeerground Cu-Agg-(Au) mine consisting of 5 ad dits at Algamarcca.
1945 1989 Minera Algamarca SA
S
Limited small-scale mining (Au) iin the Shahuind do and San Jos
mmunities. No ppublic records off exploration acttivities.
com
Geo
ologic mapping, 11 reverse circuulation and 6 diaamond drill holees.
Circa 1990
1 Atim
mmsa
Assaays and drill logss available for the reverse circulaation program.
Detaailed and regionnal mapping, soill and rock geocchemical samplinng,
1994 1996 Asarco LLC 31 reverse circulatio on and 58 diamo ond drill holes, initial metallurgiccal
testiing. Drill exploraation data available.
Limited surface saampling, 18 diaamond drill ho oles, 80 reverrse
Southern Peru Cop
pper
1997 1998 circu
ulation holes, innitial economic evaluation of thhe property. Drrill
Corrporation
exploration data avaailable.
Largge surface drillinng campaign to otaling 642 holees; both diamonnd
2002 2012 Sulliden Gold Corporation coree and RC. Majjority of the deeposit within thhe 2012 resourcce
outliine drilled to a nnominal 50m x 550m spacing.
Exteensive surface drrilling program of 234 RC holees, the majority of
whicch to decrease tthe nominal drill spacing in the SShahuindo depossit
2014
4-2015 Rio Alto Gold to approximately
a 225m x 25m aand expand thee resource. A An
addittional 12 diam ond core holes were drilled for geotechniccal
purpposes.
Compaiaa Minera Algamarca

A S.A
A. and Exp
ploraciones A
Algamarca SS.A. (Algamaarca) commeenced
exploitatio
on of the Algamarca mine in the 194
40s and contiinued miningg and exploraation work o
on the
Shahuindo
o property un
ntil 1989. Alggamarcas exp
ploration actiivities during the 1980s leed to the disccovery
of mineraalization and mining
m of the San Jos and Shahuindo m
mines. Most o
of the Cu-Ag--(Au) vein deposits
exploited by Algamarca were on the southwesteern limb of thhe Algamarca anticline (thee Algamarca m
mine),
but severral small veins and brecciaa zones on the northeastt limb of the Algamarca aanticline weree also
explored and mined byy Algamarca (the
( San Jos and Shahuinddo small-scalee gold mines).
out 1990 to 1998, three companies

From abo c ex
xplored the SShahuindo Prroject area Alta Tecnolo
oga e
Inversin Minera y Metalrgica
M S.A. (Atimmsaa), Asarco LLLC (Asarco)), and Southhern Peru Co
opper
Corporattion (Southern
n Peru). Atim
mmsa, Asarco
o, and Southeern Peru com
mpleted geolo
ogical mappingg; soil,
outcrop, and rock chip
p sampling; and RC and core drilling. Work by Assarco and Souuthern Peru lled to
the identiification of fo
our major low
w-grade gold
d-silver zoness at Shahuinddo San Jos, Porphyry, South
Contact, and East Zo
one. Southeern Peru stopped work o
on the propperty in 19988 when its pparent
company, Asarco, merrged with Grupo Mexico (Saucier and Poulin, 2004) and the pro
operty revertted to
Algamarcaa in 1999 (W
Wright et al., 20
010b).
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Sulliden acquired
a the property and
d commenced
d explorationn activity in 22002. Sullideens work waas the
most com
mprehensive on
o the projectt and is summ
marized in Ta ble 6.2-2.
Table
T 6.2-2 Summary
y of Sulliden E
Exploration A
Activities
Year
Y Description of Actiivities
Prelimminary geophysiccal surveys (magnetometer and iinduced polarizaation), re-surveyy of previous

2002
drill collars
27 diaamond drill holees. Geologic mapping
m and treenching, soil surrvey, surface rock sampling,
2003 geophhysical surveys (magnetometer and
a induced pollarization), prelim
minary metallurrgical testing,
re-surrvey of previous drill collars
56 diaamond drill holees. Geological mapping,
m soil su rvey, trenching, surface rock saampling, adit
2004
sampling, magnetometer survey
14 diaamond drill holees on targets outside of the m
main mineralized area. Re-estabblishment of
2007
grid, magnetometer
m surveys, soil sampling
12 diaamond drill holees and 25 reversse circulation ho oles. Acquisitio
on of digital 2m topography,
2009 locatio
on of previouss hole collars, trenching, drill--hole re-sampliing program, so oil sampling
(mobiile metal ion surrvey), metallurgiccal test work, prreliminary econo
omic assessmentt
79 diaamond drill holes, 82 reverse circulation holees. Mapping, ro
ock sampling, so
oil sampling,
2010 geoph
hysical surveys (magnetometer, induced polarrization, down-hole IP), metallurgical test
work,, geotechnical evvaluation
162 exxploration diamond drill holes and
a 145 reverse circulation holees. Geotechnical drilling and
2011
evaluaation .Mapping, rock
r sampling, so
oil sampling. Ressource estimatio
on.
13 exploration diamo ond drill holes (not included in thhe 2012 resourcce estimate. Geo
otechnical
2012 drillingg and evaluation
n. Mapping, rockk sampling, soil saampling. Geophyysical surveys
(magn netometer, inducced polarization,, down-hole IP)
From their acquisition

n of Sulliden in August 20
014 to their m
merger with Tahoe in Appril 2015, Rio
o Alto
completed
d 234 reversse circulation
n (RC) drill holes and 122 diamond ddrill core holes totaling 224,522
meters in and around the Shahuind
do deposit. The
T majority of these holees were drilleed as infill ho
oles to
pre-existing drill holes, with somee step-out drilling
d to exxpand the reesource. Rio
o Alto also d
drilled
oles for metallurgical, geottechnical and hydrological investigation..
several ho
6.3 Historica
H l Mineral Resource
e and Min
neral Resserve Estiimates
6.3.1 Pre-NI
P 43-101 Minera
al Resource
e Estimate
es
Two histo
oric resourcee estimates th
hat predate the
t implemenntation of NI 43-101 weree prepared fo
or the
Shahuindo
o deposit. In
n 1996, Asarrco completeed an unclasssified resourcce estimate w
within 0.3 g/tt gold
envelopess interpreted and estimateed on cross section
s and u sing a specificc gravity of 22.5 for the tonnage
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estimate. Southern Peeru completeed a second resource est imate in 1998 using the ssame method
dology
meters as the Asarco estim
and param mate, with thee addition of 998 drill holes completed bby Southern P
Peru.
The 1996
6 and 1998 reesource estim
mates are not NI 43-101 co
ompliant as a Qualified Peerson has nott done
sufficient work to verify or classify these historiical estimatess. Tahoe doees not consid
der these histtorical
estimates relevant (otther than historical relevaance) to the current stattus of the prroject and haas not
attempted
d to evaluate the reliabilityy of the estim
mates.
A summary of the pre--NI 43-101 hiistorical resource estimatees are shownn in Table 6.3--1.
Table
T 6.3-1 Pre-NI 43
3-101 Mineraal Resource E
Estimates
A
Au Grade
Year Company
y Ton
nnes
(g/t)
1996 Asarco 17,7066,000 1.14
1998 Southern Peeru 29,4100,000 0.88
6.3.2 Prior
P NI 43
3-101 Mine
eral Resourrce Estimattes
Five NI 43
3-101 resourrce estimates were previously completeed on the Shaahuindo depo
osit for Sulliden, as
broadly su
ummarized in
n Table 6.3-2.
Table 6.3-2 Priior NI 43-101

1 Mineral Ressource Estim
mate Summa
ary
Year Company Consulttant Drill Method Grad

de
Holes Estimattion
2004 Sulliden Met-Ch

hem 223 67 x 50m spaced seections ID2
2005 Sulliden Met-Ch

hem 279 67 x 50m spaced seections ID2
2009 Sulliden AMEC
C 320 67 x 50m spaced seections ID4
Mine Develo opment 83 x 50m spaced seections; 8m plann

2011 Sulliden 570 ID3
Associaates inteerpretations
Mine Develo opment 83 x 50m spaced seections; 8m plann

2012 Sulliden 826 ID3
Associaates inteerpretations
In 2004, Met-Chem
M Canada Inc. (M
Met-Chem) co
ompleted a reesource estim
mate for the Shahuindo project
based on Sullidens 20
003 drilling prrogram as weell as data fro
om Asarco annd Southern Perus explorration
programs. A total of 67
6 cross secttions, spaced 50 meters appart, were ussed to interprret the depossit. A
mensional blocck model wass constructed
three-dim d using block sizes of 10m
m north-south by 10m eastt-west
by 5m eleevation. The estimate useed data from 223 drill holees spaced fro
om 25m to 1000m apart. G
Grade
interpolattion was don
ne using inveerse distancee squared (ID
D2). Tonnagge calculationns were baseed on
specific grravity values for
f each area included in the
t estimate: San Jose (2.221), Porphyryy (1.86), East Zone
P
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port
(2.38), and South Conttact (2.40). The

T mineral resource
r estim
mate includedd in the 20044 Technical Reeport,
Resources Estimation, Shhahuindo Projeect, Peru (Saucier and Pou lin, 2004) preepared by Meet-Chem on behalf
of Sulliden
n, is summarizzed in Table 6.3-3.
Table 6.3-3 2004 4 Mineral Ressource Estim mate

(Sauucier and Poulin, 2004; cut-off grrade 0.3 g/t Au)
Au
u Grade Ag GGrade
Classifica
ation To
onnes Au O
Ounces Ag O
Ounces
(g/t) ((g/t)
Indicateed 25,8
817,075 1.07 2 3.97 8900,240 19,898,241
Inferreed 8,5
569,150 0.92 2 2.54 2533,836 6,2110,567
Met-Chem
m updated th
heir resourcee estimate in 2005 to incllude data fro
om an additio
onal 56 core holes
drilled by Sulliden in 20
004. The dattabase for ressource estimaation includedd a total of 279 holes drillled by
Asarco, Southern
S Perru, and Sulliden, spaced from 25m to 100m appart. Aurifeerous zones were
delineated
d on 50m spaaced cross seections using envelopes o
of 0.3 g/t Au. Block model parameterrs and
grade inteerpolation meethod were the
t same as in Met-Chem s 2004 estim
mate. Met-Chhem used diffferent
search ellipsoids for each zone and
a sub-zonee to reflect variations inn data densiity and geom
metric
configurattion. The mineral
m resource estimate was includeed in the 20005 Technical Report, Resoources
Estimationn, Shahuindo Project,
P Peru (Saucier and Buchanan, 22005) prepareed by Met-C
Chem on behhalf of
Sulliden, and
a is summarized in Tablee 6.3-4.
Table 6.3-4 5 Mineral Ressource Estim

2005 mate
(Saucier and Buchanan
n, 2005; cut-off ggrade 0.3 g/t Auu)
Au G
Grade Ag Grade
Classsification Tonnes
(g
g/t) (g/t)
In
ndicated 38,009,500 00.95 22.99
In
nferred 17,159,200 00.62 12.83
AMEC Americas
A Inc.. (AMEC) updated
u Met--Chems minneral resourrce estimate in Octoberr and
Novembeer 2009 as paart of a Prelim
minary Assesssment. This eestimate was based on asssays from 320 drill
holes and
d used a blocck model witth 10m by 10m by 5m bblocks with thhe model dim
mensions oriented
horizontaally at azimuth 125. The gold model was estimateed using two
o passes of innverse anisottropic
distance weighting
w to the fourth power
p (ID4), and a modeel for silver was estimateed using the same
compositee search strategy and inteerpolation power as for thhe gold modeel. AMEC esstimated reso
ources
within a pit
p shell using a cut-off grad
de of 0.23 g/tt AuEq, with a marginal cutt-off grade off 0.17 g/t AuEEq, for
oxide min
neralization an
nd a cut-off grade
g of 0.63 g/t AuEq, witth a marginall cut-off gradee of 0.57 g/t A
AuEq,
for mixed
d and sulfide mineralization. Metal pricces of $890 pper ounce go
old and $13.225 per ounce silver
were used
d in the estim
mate with varriable metallu
urgical recoveeries ranging from 80% to
o 85% for gold and
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Page46

port
15% to 70%
7 for silver. The minerral resource estimate waas included inn the 2010 T
Technical Reports,
Shahuindoo Gold Project, Cajabamba Province,
P Peru, Technical Repport on Prelim
minary Assessm
ment (Wright et al.,
2010a) an
nd Shahuindo Gold Project, Cajabamba
C Proovince, Peru, PPreliminary Asssessment (Wrright et al., 20010b),
both prep
pared by AME
EC on behalf of Sulliden; th
he results of w
which are sum
mmarized in T
Table 6.3-5.
Table 6.3-5 2009

mate
(Wright et al., 22010a, 2010b)
Tonnes Au Grade
G Ag GGrade A
Au Ag O
Ounces
Classifica
ation Ouunces
(k
kt) (g
g/t) ((g/t) (k
koz)
(k
k )
Indicateed 51,800 0.63
0 1 7.9 1,,050 299,800
Inferreed 18,000 0.50
0 66.1 2290 3,500
Mine Devvelopment Asssociates (MD

DA) completeed an updateed mineral resource estim
mate in 2011 w
which
included only
o Indicated and Inferreed Mineral Resources.
R Thhere were no
o Measured M
Mineral Reso
ources
classified due to limited density and
d QA/QC datta, uncertaintty in localizedd metal gradess due to mod
derate
overy, and un
core reco ncertainty witth regards to localized meetallurgical characteristics. Sulfide reso
ources
were resttricted to Infferred classification due to
o limited mettallurgical chaaracterizationn and some sspatial
and geolo
ogic uncertain
nty in the mo
odel. The miineralized oveerburden waas restricted tto Inferred d
due to
the uncerrtainties in graade continuityy.
The stated resource was

w fully diluteed to 8m by 8m by 4m blo
ocks and tabuulated on golld-equivalent grade
cut-offs that
t MDA co
onsidered reaasonable for deposits of this nature and for thee expected m
mining
conditions and method
ds. The AuE
Eq grade was calculated ussing individual gold and silvver grades off each
ng a gold pricce of $1,200 per
block usin p ounce an
nd a silver priice of $18.75 per ounce. For the oxid
de and
mixed ressource estim
mates, the Au
uEq grade callculation incl uded a 5:1 ddifference in gold versus silver
recovery in the propo
osed heap leeach processiing scenario. The formulaas used to ccalculate the AuEq
grade werre:
Oxide
O and Mix
xed Material: AuEq g//t = Au g/t + (Ag g/t x 0.0003125)
Su
ulfide Materiaal: AuEq g//t = Au g/t + (Ag g/t x 0.0115625)
The gold and silver resources rep

ported by MD
DA in the 2 011 Technicaal Report on tthe Shahuindoo Gold
Project, Caajabamba, Perru (Tietz and
d Kappes, 2011) are show
wn in Table 66.3-6. At thee reported ccut-off
pproximately 58 percent of the total resource wass classified ass Indicated. Approximateely 89
grades, ap
percent of
o the oxide and mixed resource con
nsidered for potential oppen pit heap leach miningg was
classified as
a Indicated.
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port
Table 6.3-6 2011

mate
(Tietz and Kapppes, 2011)
Cut-o
off Tonnees AuEq Grrade Au Graade Ag Grad de Au Ounces Ag Ouncces
Classificattion
(g AuE
Eq/t) (000ss) (g/t) (g/t) (g/t) (000s) (000s))
IndicatedO
Oxide 0.20
0 111,43
30 0.514
4 0.496 6.0 1,776 21,350
IndicatedM
Mixed 0.35
5 7,750
0 0.864
4 0.781 26.6 195 6,630
Total Indicated Variab

ble 119,18
80 0.537
7 0.515 7.3 1,971 27,980
InferredO
Oxide 0.20
0 19,390 0.377
7 0.365 3.6 228 2,270
InferredM
Mixed 0.35
5 710 0.719
9 0.685 10.7 16 240
Inferred-Su
ulfide 0.50
0 42,730 1.278
8 0.868 26.3 1,192 36,070
Total Inferrred Variab

ble 62,830 0.994
4 0.711 19.1 1,436 38,580
MDA upd
dated their reesource estim
mate in July 2012
2 based o
on additionall drilling com
mpleted by Suulliden
through May
M 2012. The
T 2012 Min
neral Resourrce estimate by MDA folllowed the saame modellinng and
estimation
n methodolo
ogy as their 2011
2 estimatee and assumeed a gold prrice of $13000 per ounce and a
silver pricce of $25 perr ounce. For the oxide an
nd mixed reso
ource estimaates, the AuEqq grade calcuulation
included a 5:1 difference in gold veersus silver reecovery in th e proposed hheap-leach prrocessing sceenario.
Formulas used to calcu
ulate the AuE
Eq grade weree:
Oxide
O Materiaal: AuEq g/t = AuEq
q g/t + (Ag g//t x 0.0038466)
Mixed
M Materiaal: AuEq g/t = AuEq
q g/t+ (Ag g/tt x 0.006410))
Su
ulfide Materiaal: AuEq g/t = AuEq
q g/t+ (Ag g/tt x 0.019231))
MDA did not constrain the resourrce within a potentially

p eco
onomic openn pit shell duee to the proxximity
of the dep
posit to the current
c topoggraphic surfacce.
The gold and silver reesources repo

orted by MDA
A in the 201 2 Technical R
Report on thhe Shahuindo Heap
oject, Cajabam
Leach Pro mba, Peru (Deefilippi, et al., 2012) are shhown in Tablee 6.3-7.
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port
Table 6.3-7 2012

mate
(Defilippi, et. al.., 2012)
Cut-off Tonnes
T AuEq
q Grade Au G
Grade Ag Grrade Au Ounnces Ag Oun
nces
Classification
(g/AuEq/t)
( (000s)
( (g
g/t) (g
g/t) (g/tt) (000ss) (000ss)
Measurred-Oxide 0.20 40,500

4 0..619 0.5588 8.1 766 10,5300
Measurred-Mixed 0.35 780 0..964 0.7748 33.77 19 850
Total Measured
M variable 41,280
4 0..626 0.5591 8.66 785 11,3800
Indicatted-Oxide 0.20 104,840 0..506 0.4482 6.33 1,6244 21,0800
Indicatted-Mixed 0.35 1,190 0..919 0.7766 23.88 29 910
Total Indicated variable 106,030 0..511 0.4485 6.55 1,6533 21,9900
Total Meas.
M + Ind. variable 147,310 0..543 0.5
515 7.1
1 2,438
8 33,370
Inferreed-Oxide 0.20 9,570 0..419 0.4402 4.33 124 1,3300
Inferreed-Mixed 0.35 20 0..762 0.6684 12.22 - 10
Inferreed-Sulfide 0.50 61,410

6 1..202 0.7762 22.99 1,5044 45,2200
Total Inferred variable 71,000

7 1..096 0.7713 20.44 1,6288 46,5600
Tahoe haas not attemp

pted to validate the prior NI 43-101 Mineral Ressource estimaates and doees not
consider any
a of these estimates
e as the
t current Mineral
M Resouurces for the Shahuindo prroject.
6.3.3 Prior
P NI 43
3-101 Mine
eral Reserv
ve Estimate
es
Mineral Reserve
R estim
mates for the Shahuindo prroject were rreported in the 2012 Techhnical Report oon the
Shahuindoo Heap Leach Project, Cajabbamba, Peru prepared
p for Sulliden Goldd Corporatio
on, Ltd. by Kaappes,
Cassiday & Associates and Mine Deevelopment Associates
A (D
Defilippi et. al.., 2012). Thee Technical R
Report
had an efffective date of
o Septemberr 26, 2012. No
N Minerals Reserves weere published prior to the 2012
Mineral Reserve
R estimaate.
MDA estimated the ox

xide and sulfid
de Mineral Reeserves withiin a pit designn based on a pit optimization of
the Measu
ured and Indiicated mineraal resources. The econom
mic assumptio
ons and other parameterss used
by MDA to
t undertake the pit optim
mization for th o deposit are presented in Table 6.3-8 .
he Shahuindo
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port
Table 6.3
3-8 2012 Pit Optimizaation Parame
eters
(Defilippi, et. al.., 2012)
Pit Optimiza
ation Parametters 2012
Market Con
nditions
Gold pricee per ounce $1,,300
Silver pricee per ounce $
$25
Payable prroportion of gold
d and silver prodduced 99..50%
Minimum government
g royyalty N
NA
Mill Recove
ery
Gold reco
overy - Oxide 866%
Gold reco
overy - Mix 550
Silver reco
overy - Oxide 15%
Silver reco
overy - Mix 15%
Costs
Mining cosst 1..99
Process Cost
C 4..45
Incrementtal Cost Ore N
NA
TPD 10,,000
TPY 3,6650
G&A Costt 1..73
Gold Refin
ning 5..50
Silver Refining 0..57
Mining Para
ameters
Slope Angle 27 - 41 degrees
The breakeven cut-offf grades weree calculated to be 0.23 gg/t Au for oxxide and 0.399 g/t Au for m
mixed
material. The 2012 Miineral Reserve estimate is summarized in Table 6.3-9.
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port
Table 6.3-9
6 2012 Mineral Re
eserve Estima
ate
(Defilippi, ett. al., 2012)
Proven
n Pro
obable Prove
en and Probable
Ox
xide Mixed
d Total Oxide Miixed Totall Oxide Mixed T
Total
Tonnes (000
0s) 14,994 165 15,159 22,595 993 22,6888 37,589 258 377,847
AuEq Gradee (g/t) 0.91 0.72 0.91 0.81 00.89 0.81 0.85 0.78 00.85
Au Grade (gg/t) 0.90 0.71 0.90 0.80 00.87 0.80 0.84 0.76 00.84
Ag Grade (gg/t) 10.4 17.6 10.5 8.8 221.3 8.9 9.4 18.9 9.5
AuEq Ounces (000s) 438

4 4 442 588 3 591 1,026 6 1,032
Au Ounces (000s) 434

4 4 437 582 3 585 1,015 6 1,022
Ag Ounces (000s) 008

5,0 93 5,102 6,396 664 6,4599 11,404 157 11,561
6.4 Historica
H l Producttion
The follo
owing informaation regardiing historical production from the Shahuindo disstrict is pressented
verbatim from Sulliden
ns 2012 Technical Reporrt on the Shaahuindo Heapp Leach Projeect (Defilippi et al,
2012).
The Algamarca mine,

m located
d on the so
outhwest sidde of the A
Algamarca annticline, prod
duced
oximately 1.5 million tonnees grading 2.0
appro 0% Cu, 680 gg/t Ag, and ssome gold o
over a period of 45
years;; the undergrround operattions closed in 1989 (Sauccier and Pouulin, 2004; W
Wright et al., 22010a,
2010b
b). Compania Minera Algam
marca SAC was
w the operaator.
On th
he northeast limits of the Algamarca an
nticline, Algam
marca mined 8,000 tonness of gold-silveer ore
from three adits in the Cuerrpo San Jos area in 19888 (Saucier aand Poulin, 22004; Saucier and
Buchaanan, 2005; Wright
W et al., 2010a, citing Fletcher, 19997). Algamarrca also explo
oited narrow
w gold-
silver veins produccing 12,000 to
onnes at the Shahuindo m
mine from 19887 to 1989 (SSaucier and P
Poulin,
2004; Saucier and Buchanan, 2005;
2 Wright et al., 2010aa, citing Fletcher, 1997). AMECs Tecchnical
Reports (Wright et
e al., 2010a, 2010b, citingg Montoya ett al., 1995) aalso referencee production from
underrground stopees and a small open pit to
otaling 70,0000 tonnes at ann unknown grrade from Sann Jos
and Shahuindo in the
t 1980s or 1990s. Altho
ough this apppears to be thhe same mininng described in the
Chem reports (Saucier and Poulin, 200
Met-C 04; Saucier annd Buchanan, 2005), Taho
oe cannot acccount
for th
he difference in
i tonnages.
Small scale undergrou

und mining iss currently being
b undertaaken by informal miners in the Algam
marca
anticline area,
a about 1,,000 meters west
w of Tahoees planned o
open pit operaations.
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port
7.0 GEOLOG
G GICAL SETTING
S G AND M
MINERALIZATIO
ON
7.1 Regional
R Geology
The Shahuindo Depossit is located on the easteern flank of thhe Andean W

Western Cordillera in norrthern
Peru, approximately 35
5 kilometers north-northw
west of Taho es La Arena mine. The aarea is underlaain by
sedimentss of the Mesozoic West Peruvian Bassin which weere folded annd faulted during the Cennozoic
deformatiion.
The regio
onal stratigrap
phy is dominaated by the fo
olded Upper Jurassic Chicaama Formatio
on to the Low
wer to
Middle Crretaceous Go
oyllarisquizga Group, whicch are mainly siliciclastic seediments, witth younger Lo
ower-
to Upper--Cretaceous carbonate sediments occu
upying the corres of synclinnes. The regio
onal stratigraaphical
column iss summarized in Table 7.1-1; a plan maap and exampple cross secttion of the reegional geologgy are
illustrated
d in Figure 7.1
1-1 and Figuree 7.1-2, respeectively.
Table 7.1-1 Shahuind

do Regional S
Stratigraphic Column
Gold
Era System
S Series Group Form
mation
Mineralization
n
Recent Alluvial, FFluvial
uaternary
Qu
Pleistocene Glacial, Laacustrine
Ceno
ozoic
Neogene
N
Calipuy AC
Paaleogene
Upper Yumaguall
Pariatambbo
Chulec
Inca
Crretaceous Farrat SHA
Meso
ozoic Lower
Carhuaz SHA
Goyllarisquizgga Santa
Chimu A
AC, ET, LA, LV, SSR
Oyn
Jurassic
J Upper Chicama
after Reeyes R. L, 1980 and
a Navarro et. al., 2010
gold occurrences: AC: Lagunas Norte, ET: El Toro, LA
A: La Arena, LV: La Virgen, SHA
A: Shahuindo, SSR: Santa Rosa
From oldeest to youngeest, the region

nal stratigraphy is describeed as follows::
cambrian): Basement rocks to the eeast of Shahuuindo along tthe River Maraon
Paleozoiic (and Prec
and the Eaastern Cordilllera. They are not exposed at Shahuinndo or in the immediately surrounding area.
P
Page52

port
Mesozoic: The old

dest outcropping rocks in
i the regio n belong to the Upper Jurassic Chhicama
n and consist of soft, lamin
Formation nated marine black shales w
with thin sandstone interccalations.
The Chimu
C Formaation constitu
utes the princcipal host rocck for gold m
mineralization at Lagunas N
Norte,
El To
oro, La Arenaa, La Virgin and marca vein syystem. The upper
a Santa Rossa deposits aand the Algam
memb
ber of the Go
oyllarisquisga Group consiists of the Sa nta, Carhuaz and Farrat FFormations. T
These
formaations consistt of generally finer-grained
d siliciclastic uunits with miinor interbed
dded carbonaates in
the lo
ower portion and thick beeds of sandsto
one in the up per portion o
of the formattion. The Caarhuaz
and Farrat formations are the hosts
h for gold and silver m
mineralization at Shahuindo
o.
Overllying the Goyyllarisquisga Group

G sedimeents are Loweer Cretaceouus shallow maarine carbonaates of
the In
nca, Chulec an
nd Pariatambo
o formations and the Uppper Cretaceouus Yumagual Formation.
The Mesozoic
M sed
diments were folded and faulted
f towarrds the end o
of the Cretacceous by thee early
stagess of the develloping Andean Orogeny.
Cenozoic: The Calip

puy Group cordilleran arcc volcanics u nconformablyy overly the folded and faaulted
Mesozoic strata south-west of Shahuindo. These
T sub-aeerial volcaniccs are assocciated with U
Upper
Miocene sub-volcanic intrusive bod
dies of andessitic to dacitiic compositio
on. The Callipuy volcaniccs are
uffs interbedd
mainly tu ded with andesitic lavas with agglom
merate horizzons at the base at the base
formation
n.
Cenozoic intrusive ro
ocks includingg andesite, dacite
d and quuartzfeldspaar porphyriess that intruded as
isolated sttocks into th
he Mesozoic sedimentary
s sequence.
s T he age of theese intrusionss vary from cc.a. 16
to 26 Ma. (Bussey an
nd Nelson 20
011). One of these intrusiions is interppreted to be the source o
of the
gold and silver
s mineralization at Shaahuindo.
The main
n structural features
f of th
he region arre associated with the Juurassic-Cretacceous sedimeentary
sequence and consist of a series of folds, reverse faults aand over-thruusts trending generally NW-SE
(Figure 7.1-2). Individu
ual folds rangge up to 80 kiilometers in l ength and 5 kkilometers in width, and d
display
various deegrees of defo
ormation dep
pending on th
he relative co mpetency of the various sstratigraphic llevels.
The highlyy competent sections of the
t Chimu Fo
ormation, forr example, fo
orm structuraally complex cores
to the maain anticlines, which have resisted
r erosion better thaan the enclosiing strata.
The regio
on is particulaarly well-endowed with mines
m and minneral occurreences varyingg from low-to
o-high
sulfidation
n systems and
d from porphyry through polymetallic
p tto epithermal deposits. C
Currently opeerating
mines in the
t area inclu
ude Quiruvilcca polymetallic Cu-Zn-Pb--Ag mine andd the La Arenna, Lagunas N
Norte,
La Virgen and Santa Rosa
R high-sulfiidation epitheermal gold m
mines, with maany other go
old-silver prosspects
in the reggion.
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Page53

port
Figure
e 7.1-1 Sh
hahuindo Reg
gional Geolog
gy
Page54
Shahuindo Min
ne, Peru
Figu
ure 7.1-2 Shahuindo Regional Cross Section
Mesozoic sedimentts affected by folds and reverse faults. Mio
ocene intrusives empplaced in the fold axees.
Page55

port
7.2 Project
P Geology
G
The Shah
huindo Projecct is located within a reggional fold aand thrust beelt of predom
minantly Messozoic
sedimentaary rocks. Sedimentary rocks
r in the project area have been inntruded by aat least three felsic
stocks wh
hich tend to be located along
a faults an
nd cores of aanticlinal struuctures as shhown previouusly in
Figure 7.1-2.
Sedimentaary rocks accross the Shaahuindo Project area connsist of a low

wer, shallow
w marine-to-d
deltaic
siliciclasticc sequence and
a an upperr sequence off finer graineed siliciclasticc units with m
minor interbeedded
carbonatees in the loweer portion and thick beds of sandstone the upper po
ortion, all of LLower Cretaceous
age.
The oldesst rocks expo

osed at the bottom
b of thee valleys and in the cores of anticlines are thinly beedded
and laminated mudston
nes, minor silltstones and fine
f grained sandstones wiith occasional coal seams o
of the
wer Cretaceou
basal Low us Chicama Formation.
F
Overlyingg the Chicam

ma Formation
n is the Goyyllarisquizga G
Group whichh, from oldest to youngeest, is
comprised
d of the Chim
mu Formation
n, Santa Formation, Carhuaaz Formationn, and Farrat FFormation.
Overlyingg the Chimu Formation is the Santa Fo

ormation whi ch consists o
of mudstone with intercalaations
of limesto
one. It is exp
posed on the flanks of thee Algamarca aanticline. Ovverlying the SSanta Formattion is
the Carhuaz Formatio
on, consistin
ng of interbeedded sandsttone, siltstonne, and mudstone, with many
sandstonees displaying cross bedd
ding and amaalgamated w
wedge-shaped sandstone beds. The FFarrat
Formation
n consists of cliff-forming siliciclastic strata
s dominaated by sandsstone. The Faarrat Formattion is
the domin
nant host of gold and silveer mineralizattion in the no
orthern part of the Shahuuindo depositt. The
Carhuaz and
a Farrat fo
ormations aree the principaal hosts for ggold and silveer mineralizattion in the central
and south
hern portions of the depossit, as illustratted in Figure 7.2-2.
P
Page56

port
Figu
ure 7.2-1 Shahuindo Lo
ocal Geologyy
Page57
Shahuindo Min
ne, Peru
Fig
gure 7.2-2 Local Stratigraphic
c Column for the
e Carhuaz/Farraat Formations
Page58

port
Multiple intrusions of dacitic and andesitic

a feld
dspar stocks have intrudeed the Cretacceous sedimeentary
sequence at Shahuindo
o (Figure 7.2-3 and Figure 7.2-4). Intrussions recognized by previo
ous mapping in the
Shahuindo
o area includee rocks descrribed as andeesite, dacite pporphyry, andd intrusion brreccia. Theree is an
opportunity to improvve the geologgic understanding of the ddistrict by carrefully mappinng the distribbution
ntrusive phases and separaating lithologyy from alterattion.
of these in
The five non-breccia

n intrusive phasses were reco
ognized as di orite porphyyry (known ass andesite in the
district), dacite porph
hyry, fine-grained dacite porphyry,
p quuartz diorite porphyry, and foliated qquartz
orphyry. Thee distribution of the five intrusion typees is based on field observ
diorite po rvations. The three
intrusive breccia phases are heterrolithic breccia with biotitte diorite maatrix, hetero
olithic brecciaa with
fine-graineed dacite mattrix, and heteerolithic megaabreccia with foliated quarrtz-biotite daccite matrix.
Diorite porphyry (and

desite) was ob
bserved in th
he southeast part of the m
main Shahuind
do corridor aand is
inferred to be present on the north
heast side of the Algamarcca anticline annd east of thee current resource
outline. The
T mapped pattern
p of thee intrusion ind
dicates emplaacement mosttly as sills in tthe Goyllarisqquizga
Group un
nits. It is charracterized byy large (8mm diameter) biiotite phenoccrysts, a lack of quartz, annd no
evidence of hydrothermal alteration
n where seen
n in the field, although it iss deeply weatthered. An iso
otopic
age deterrmination is reported
r to have been made
m (thoughtt to be zirco
on U-Pb) on this intrusion and
yielded an
n age of ~26 Ma.
M (Bussey and
a Nelson 20
011).
The dacitte porphyry is characterrized by one cm bipyram

midal quartz phenocrysts,, with biotitee and
plagioclase phenocrystts in an aphan
nitic groundmass. It is the most widesprread intrusion in the Shahhuindo
nd is argillicallly altered wherever obserrved. The maapped distribuution indicatees that much o
district an of the
dacite porrphyry was emplaced as siills concordan
nt to beddingg in the Goyllarisquizga Grroup. Nonethheless,
the princiipal intrusion along the main
m Shahuindo corridor iss a compositee dike-like bo
ody with relaatively
steep disccordant contaacts, as is thee dacite porp
phyry intrusio
on on the southwest limbb of the Algam
marca
anticline (see
( Figure 7.2-6). The larrge dacite porrphyry body iin the north ppart of the main corridor splays
to the southeast into a series of dikes that narrrow and disaappear beneaath cover in tthe central arrea of
uindo depositt. An isotopic age determ
the Shahu mination (zirco
on U-Pb) on this intrusionn yielded an aage of
~16 Ma (B
Bussey and Nelson
N 2011).
Three inttrusive brecccia phases arre recognized

d on the pro
operty and innclude; (1) hheterolithic bbiotite
diorite brreccia, (2) heeterolithic fin
ne-grained daacite brecciaa, and (3) heeterolithic megabreccia (FFigure
7.2-7).
hic fine-graineed dacite breeccia was recognized durinng mapping inn the main Shhahuindo corrridor.
Heterolith
It occurs as narrow diike-like bodiees, no more than
t three m
meters in widtth, with rounnded to subanngular
clasts up to 10 cm in diameter of sandstone, siltstone,
s daciite porphyry,, and rare shhale, in a mattrix of
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fine-graineed lithic classts and clay with

w 1-3mm quartz, biottite, and plaggioclase crysttals. Most o
of the
locations are in the north-wester
n rn area of th
he resource, with two sittes in the ceentral area o
of the
resource. This breccia also was notted in drill co
ore from the central zone where heterrolithic fine-grrained
dacite breeccia contains fragments of sedimentaary rock mineeralized withh pyrite, sphaalerite, quartzz, and
white clayy, indicating th
hat the brecccia is associateed with the m
mineralizationn.
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Shahuindo Min
ne, Peru
Figure
e 7.2-3 Multip
phase Intrusion Crosscutting
C Sed
dimentary Rockss (Section E1100
0)
Page61
Shahuindo Min
ne, Peru
Figure 7.2-4 Multiph

hase Intrusion Crrosscutting the S
Sedimentary Roccks (Section X-X
X)
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port
Figure 7.2-5 Sedimento

ological Featu
ures for Dete
ermining Strratigraphic Se
equencing
A - Tangential (at base)) cross beddingg
B - Load casts or chann
nels on base off sandstone beed
C-D - Ch
hannel in overtturned fold lim
mb
E - Load casts
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Shahuindo Min
ne, Peru
Figure 7.2-6 Intrusive Relattionships

And
desite (red pattern
n) intruding core off a fold and cut by altered dacite dikee (yellow outline) inn the northern Shaahuindo area
Page64

port
Figu
ure 7.2-7 Monolithic-C
M Clast Breccia
A - Sub--angular quartzzite-clast brecccia, matrix supported
B - Sedimentary-clast breccia cuttingg dacite
C - Pebble dike (sill) with
w rounded qquartzite clastss
D - Sub-rounded sand
dstone-clast brreccia
7.3 Mineraliz
M zation
Mineralizaation at Shahuindo has been identified over an areaa approximateely 3.7 kilometers southeast to
northwest and 0.5 kilo
ometer southw
west to north
heast. Oxidaation of minerralization exttends to a deppth of
ow surface. Sulfide
150m belo S mineraalization has been
b identifieed by surface drilling to 7000m depth.
Mineralizaation at Shah
huindo can best
b be descrribed as an intermediate-sulfidation eepithermal syystem,
though hiigh-sulfidation
n mineralization occurs att depth and iin the core o mal breccias. The
of hydrotherm
high-sulfid
dation mineraalization wass pervasively overprintedd by intermeediate-sulfidattion mineralizzation
(pyrite, galena, sphaleerite, Ag sulffosalts), whicch occurs at shallow levels and in ffeeder structtures.
Mineralizaation occurs on fracture surfaces,
s in brreccia matrixx, and as disseeminations w
within the sed
diment
packages.
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The host rocks at Shaahuindo are the

t Carhuaz and Farat seddimentary formations which are folded and
locally fau
ult offset, and
d cut by porrphyritic dikes and stockss. Sandstonee tends to bee a better ho
ost to
higher graades of gold and silver co
ompared to siltstone.
s Bre cciated strucctures with ppolylithic fragm
ments
consist off wall rock claasts, locally cllasts of residu
ual quartz (thhe vuggy textuure indicatingg rock dissoluution),
as well as
a juvenile clasts of dikee rock, the latter evidennce of a synn-hydrotherm
mal timing off dike
emplacem
ment.
In the ox
xide facies, which is interp
preted to be the result o
of weathering processes, ggold and silveer are
associated
d with the preesence of jaro
osite and hem
matite. In the sulfide facies, gold is typiccally extremely fine
grained; the
t mineral sp
pecies has no
ot been identtified. Fine-grrained pyrite forms a closse associationn with
gold mineeralization and
d occurs as disseminationss, veinlets, andd semi-massivve replacemeent bodies.
Tetrahedrrite, sphaleritte, galena, arssenopyrite, sttibnite, and ccovellite havee also been reported as m
minute
blebs adhering to zoneed pyrite. Altthough nativee silver has beeen identifiedd at San Jos and in the historic
o mine, silver is usually fou
Shahuindo und in sulfosalts at Shahuinndo.
7.4 Structura
S al Geolog
gy
The Shah
huindo districct occurs witthin the Eoceene fold-thruust belt of no
orthern Peruu (Montoya eet. al.,
1995). Altthough most structural elements of the fold-thrust belt formed during the Inncaic II orogeeny at
~43 Ma, geochronolog
g gical data and
d field relation
nships suggesst that mineraalization com
mmenced arouund16
Ma (Mioccene). The Sh
hahuindo disttrict occurs along a locallized belt of intrusive rocks that is m
mostly
parallel to
o the dominaant structural fabric of thee fold-thrust belt. Pre-miineralization magmatism aat ~26
Ma produ
uced quartz diorite porph
hyry intrusions (mapped as andesite) and mineralization appeaars to
have form
med in assocciation with dacitic
d to rhyyolitic magm atism and asssociated breecciation, pro
obably
related to
o high-energy diatreme acttivity.
Although fold-thrust belt

b structurees developed approximateely 27 millionn years prior to mineralizzation,
fold-thrusst belt structu
ural elements controlled much
m of the m
mineralizationn. NW-trend
ding Miocene dikes,
diatremess, and minerralized brecciias parallel the
t regional strike of fold-thrust struuctures and were
probably emplaced alo
ong reactivated fold-thrust belt structurral elements aand/or basem
ment structurees.
Field evid
dence indicates that both structure and lithology exert imporrtant controlss on the loccation,
shape, and orientation
n of mineralizzed rock. Im
mportant struuctural elemeents include ffold limbs and
d fold
axial surfaaces, fold-relaated fracturees, faults and related exteension fracturres, breccia d
dikes and irreegular
bodies, and
a igneous intrusive con
ntacts. Thesee structural elements arre described below and their
geometryy and spatial relation
r to mineralized zon
nes have beenn used to connstruct the sttructural mod
del for
the Shahu
uindo district.
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The princcipal zone off mineralizatiion in the Sh

hahuindo disttrict occurs in a belt beetween two large-
amplitudee regional-scaale folds, the Algamarca anticline
a and the San Josee Anticline (Figure 7.4-1)). The
Algamarcaa anticline has amplitude of
o at least 400
0m and is uprright and sym
mmetrical. The San Jose fold has
an amplitu
ude of at leasst 300m and is an asymmetric, overturnned, northeasst-vergent folld with a low-angle
dip (15-2
20) axial surfface (i.e., reseembling a recu
umbent style fold).
The Chim
m-cored Alggamarca anticcline is interp
preted as eithher an allochhthonous faullt-bend fold iin the
hanging wall
w of a dupllex roof thru
ust, or as an anticlinal staack of folded strata and fo
olded thrust faults
above thee postulated sub-horizonttal roof thrusst below the base of the Algamarca aanticline expo
osure.
Analysis of
o old mine workings
w in the Algamarcaa mine suggeest that the southern limbb of the Algam
marca
anticline continues
c to at least the 2,690m elevvation. How
wever, geomeetric features of the Algam
marca
anticline (symmetrical,
( upright, box
x shape) indicaate that it is pprobably a deetachment folld, not a faultt-bend
fold.
n in fold-thru
The strain usts belts is typically
t partittioned or co
ompartmentallized along sttrike by transsverse
accommo
odation faults (also known as tear faultss). The existtence of tear faults in the Shahuindo district
was noted
d by Hodder (2010b) and Hodder et al. (2010a); succh faults incluude the Cholo
oque, La Cruz, and
Los Alisos faults. Alth
hough these faults
f likely exist (the eviddence is mosttly from topo
ographic lineaament
mapping), they displayy a combinattion of kinem
matics and st rong displaceement gradieents. Althouggh not
osed at surfacce, the faults are thoughtt to be steepply dipping. T
well-expo The La Cruzz Fault, although it
terminatees the Algam
marca anticline where it accommodate
a ed much vertical displacement, cannot be
traced no
orth of the main
m Shahuindo corridor and terminnates before reaching thee Pampa de A
Arena
anticline. The Los Aliso
os Fault, inferrred to be present based o
on a topograpphic lineamennt and alignmeent of
intrusive bodies, show
ws no displacement of units and does not correlatte with transsverse veins iin the
Algamarcaa district. Ho
owever, the Los
L Alisos Fault appears to
o terminate tthe main Shahhuindo minerralized
corridor to
t the northw
west.
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Figure 7.4-1 Combine

ed Structure
e and Minerallization Map - Shahuindo Project
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7.5 Hydrothe
H ermal Altteration
Visual evidence of min

neralization in
n oxidized an
nd weatheredd rocks at suurface includees the presennce of
d crystal mold
voids and ds after pyritte and other sulfides, ironn oxide in bo
oxwork textuures after suulfides,
limonitic or gossanouss coatings, fin
ne-grained eu
uhedral quarttz druse as vveinlets and vugs in breccciated
zones, cryystalline whitee clay or sericcite, and alunite, jarosite, o
or scorodite in veins and vveinlets.
Studies of
o hydrotherm
mal clay-like alteration minerals
m havee also been conducted o
on the projeect. A
petrograp
phic descriptio
on followed by
b Terraspecc survey waas completed by Rio Alto geologists onn 50%
of the co
ore and chip
ps samples frrom the pro
oject. This sttudy defined deep occurrrences of dickite,
pyrophylliite, and alunitte, particularlly along fractures and dikees that may ddefine feeder zones and shhallow
outflow of
o an initially reactive
r fluid. There is a broad zone off sericite (illitee?) at shallow
wer depth thaat may
be associaated with a white
w mica-staable mineralizing fluid (Heddenquist, et. aal., 2015).
Trending from southeaast to northw

west through the deposit, tthere is an altteration vector of the follo
owing
assemblagges in the sed
diment packagge: silica-pyro
ophyllite, silicaa-paragonite, and illite-musscovite-paraggonite.
These asssemblages aree indicative off a general treend of lesser temperaturee and higher ppH from souttheast
to northw
west. A tren
nd of lesser temperature and
a higher pH
H from the ccore of mineeralization outtward
exists in the
t southeast part of the deposit.
d
Jarosite fo
orms in acidic environments usually due to oxidatiion of pyrite-rich rocks inn the near suurface
environment (Figure 7.5-1).
7 Mesozzoic sediments are affecteed by folds annd reverse faaults with Mio
ocene
intrusives emplaced in the fold axess.
At Shahuiindo, jarosite occurs in veeins and as brreccia matrixx. Because jarrosite is preciipitated from iron-
rich acidicc surface watter, it often fo
orms some distance
d awayy from the weeathering pyrrite-rich rockk from
which it iss derived. No
onetheless, itss presence in outcrop is a good indicattor that pyritee-rich rocks aare or
were nearrby.
Scoroditee (iron-arseniic oxide) oftten forms wiith jarosite dduring weathhering of roccks that conttained
arsenic-beearing sulfides in addition to significantt pyrite, and is an importaant mineral to
o map in thee field.
Scoroditee was noted at
a two sites in the eastern
n area of the resource. Itss presence iss an indicationn that
arsenic-beearing sulfidess were oxidizzed along with
h pyrite.
Figure 7.5
5-2 and Figurre 7.5-3 are cross section
ns depicting the distribution of hydro
othermal alterration
intensitiess in the Shahu
uindo depositt.
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A B
Figure
F 7.5-1 Jarosite in Outcrop.
A - Brown
B jarosite veins in sandsttone (eastern Shahuindo)
S
B - Jaarosite and greey-green scorodite (arrows) in
i breccia matrrix exposed in road cut (central Shahuindo
o)
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Shahuindo Min
ne, Peru
Figure
e 7.5-2 Hydro
othermal Alterattion Section Sh
hahuindo Projectt (Section E1100
0)
Page71
Shahuindo Min
ne, Peru
Figurre 7.5-3 Hydro

othermal Altera
ation Section S
Shahuindo Projecct (Section XX))
Page72

port
7.6 Geometa
G allurgy
Metallurgiical recovery of gold from

m the Shahuin
ndo deposit iss affected by lithology (disscussed in deetail in
Section 13 Mineral Processing
P and Metallurgiccal Testing). FFive primary geometallurggical domains (with
additional subdomains)) have been determined
d based on the rrelationship bbetween litho
ology and graiin size
and gold recovery.
r Th
he domains ussed for geometallurgical cl assification arre:
Saandstone
low finess content (<5 5% fines)
high finees content (5%%-20% fines)
Siltstone
Breccia
clast-suppported (<20% % fines)
matrix-supported (>2 20% fines)
Mixed
M sandstone and siltsto
one
Colluvium
C
There is a high degree of lateral and verticaal lithologic vvariability at Shahuindo, particularly in the
northern half of thee deposit. he distributi on and occcurrence of lithologic units /
Modelling th
geometallurgical domaains is critical to mine planning. A
Additional dettailed study and modelliing of
lithology, geochemistrry and alterattion from drrill core and open pit maapping is neeeded to refinne the
distributio
on of lithologgic units and
d create a more comprehhensive geom
metallurgical d
domain model for
planning purposes.
p
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8.0 DEPOSIT
D T TYPES
S
8.1 Deposit
D Types
T
The Shahuindo deposit formed in a predominaantly intermeediate-sulfidattion epitherm

mal system (FFigure
8.1-1) of probable
p Mio
ocene age. Disstinguishing characteristics
c s of an interm
mediate-sulfid
dation environnment
include mineral
m assemb
blages indicating a sulfidation state betw
ween those o
of high and low
w sulfidation ttypes,
relatively high total su
ulfide contentt of five to 10
0 percent in the sulfide eenvironment, presence of silver
sulfosalts, and associaation with an
ndesitic to daacitic volcaniccs. Magmaticc associated fluids are im
mplied.
There is no
n evidence of
o adularia at Shahuindo, thus
t ruling ouut a low-sulfiddation enviro
onment. Therre are
some obsservances of enargite
e at deepth, suggestin
ng a mixed inntermediate- tto high-sulfidaation system..
Epithermaal deposits fo
orm as high--temperaturee mineralizingg fluids rise along structuural pathwayys and
deposit quartz and prrecious and base-metal
b minerals
m in oppen spaces inn response to
o boiling, whhich is
usually co
oincident to a release off pressure within
w the hyddrothermal ssystem. This quartz and metal
deposition
n, followed by
b resealing of
o the system
m, is repeatedd over the liffe of the hyd
drothermal syystem
resulting in crosscutting and overp
printed brecccia and vein textures. T
Typically, the larger and hhigher
posits are associated with
grade dep h long-lived hydrothermaal systems marked by complex overlaapping
veins.
These deeposits are sttrongly struccturally contrrolled. Minerralizing fluids are directed along structural
pathways with high graade ore shoo
ots typically concentrated
c in open dilattant zones. Thhese dilatant zones
commonlyy form wheree inflections occur verticaally and lateraally along thee deposit. Meetal depositio
on and
zoning in epithermal deposits
d are related
r to thee level of boilling. Typicallyy, precious metals deposit at or
near the boiling level while base metals
m precipiitate below. Boiling may o
occur at diffeerent levels aas the
hydrotherrmal system evolves
e produ
ucing an overrprint of vario
ous episodes.
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Figure 8.1-1
8 Spattial Relationsship of Intermmediate Sulfiidation Depo
osits
(after Corbett, 20022)
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9.0 EXPLOR
E RATION
9.1 Explorati
E on Strate
egy
The explo
oration strateegy at Shahu
uindo utilizes relatively staandard explo
oration technniques that innclude
detailed surface
s geolo
ogic mapping, surface geochemical sam
mpling, and drill testing. T
The most efffective
exploratio
on tool at Sh
hahuindo hass been core and RC dril ling, the results of whichh are discusssed in
Section 10 Drilling. Samples havve also been collected fro
om undergro
ound workinggs in the norrthern
portion of the project area which has
h seen explo
oitation by infformal minerrs.
Several taargets proxim

mal to the Shaahuindo depo
osit have beeen identified iin the districtt from geophhysical
surveys, prior informal mining op
perations, surface mappinng and geochemical sampling, and drrilling.
Informatio
on regarding specific explo
oration targetts is presenteed in Section 224.2 Explorration Potenttial.
The focuss on the 2014-2015 workk plan was to

o infill drill tthe existing rresource/reseerve; hence o
only a
small amo
ount of explloration worrk has been carried out on other exxploration taargets outside the
planned pit
p limits durin
ng this period
d.
9.2 Geophysi
G cal Surve
eys
Val Dr Geofisica
G Perru conducted magnetic and induced po
olarization (IPP) geophysicaal surveys bettween
2002 and 2012 on beh
half of the prrior owners of
o Shahuindo. There have been no add
ditional geophhysical
surveys co
ompleted on the concessio
on since the acquisition
a off the deposit by Rio Alto in 2014.
The magn
netic surveys covered mosst of the concession and ccomprise abo
out 550 line-kkilometers off data.
Gaps in the
t image aree due to areas that could
d not be accessed. The ssurveys clearlly suggest a major
intrusive body, as indiicated by a prominent
p maagnetic high, extends from
m the centerr of the Shahhuindo
o the project boundary in the northweestern area off the concesssion package. Another maggnetic
deposit to
anomaly that
t may refleect an additional porphyry body is appaarent to the nnorthwest of Shahuindo (A
Azules
exploratio
on target). Reesults of the magnetic
m survveys are illust rated in Figurre 9.2-1.
Over 160
0 line-kilometters of variou
us pole-dipolee IP surveys w
were conduccted over pro
ospective areeas on
the Shahuindo conceession The IP surveys highlighted aanomalies w
which have ssubsequently been
successfullly drill tested
d since 2002 on the depo
osit. There arre large tractss of ground tthat have nott been
traversed with IP surveeys and preseent some longger term exp loration oppo
ortunities (Figgure 9.2-2).
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Figure 9.2--1 Shahuin

ndo Magnettic Survey Re
esults
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Figure 9.2-2 Sha

ahuindo IP S urvey Results
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9.3 Geochem
G mistry
Mineralizaation outcrop
ps or subcrop
ps in numero
ous locations on the conceession. A largge database o
of soil,
channel saample, and ro
ock sampling results has been
b accumul ated since 20002. Geocheemistry is gennerally
a reliable tool to assist in the identification an
nd evaluation of precious and base metal mineralizzation
potential and for the generation
g off drill targetss. A compilattion of rock chip gold geochemistry rresults
are displayyed in Figure 9.3-1.
Figure 9.3-1
9 Shah
huindo Rocck Geochemistry
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The Shahu
uindo surfacee sample dataabase containss a total of 122,070 rock saamples and 11,680 soil sam
mples.
Surface saamples consisst of trench, grab
g and rockk chip samplees. Trench sam
mples were ggenerally excaavated
to bedrocck, or to a maximum deepth of 1.8 meters.
m Trennches were ssampled either horizontaally or
vertically, depending on trench geology. Horizon
ntal channel ssamples weree typically locaated at the baase of
the trench
h wall. Where bedding waas horizontal, vertical channnel samples w
were taken frrom the top tto the
base of th
he wall. Samplle lengths aree variable dep
pending on geeology.
Most of the accessiblle undergrou

und adits located on the concession were sampleed prior to 2012.
ossible, samples were takeen from the adit
Where po a portal an d along the aaccessible porrtion of the tunnel.
Most samples were vertical and non
n-continuous. Approximaately 140 smaall adits were sampled.
Detailed soil
s sampling completed by
b Sulliden beetween 20033 and 2012 reevealed a serries of continnuous,
parallel go
old anomaliess in the centrral and northeern areas of tthe concessio
on. Base mettal anomalies were
found to the
t northwesst and to the southeast of the concessio
on.
Geologic mapping and

d rock chip sampling prrograms are ongoing, witth an emphaasis of delineating
mineralizeed sandstone to assist in drill targetingg for ROM m
material or m
material to bee used for bleending
with siltsttone on the leeach pad.
No analyytical data fro

om surface rock
r sampless or soil sam
mples were used in the mineral resource
estimate.
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10.0 DRILLIN
D NG
10.1 Introduct
I tion
A total off 1,039 holes drilled by Atimmsa, Asarcco, Southern Peru, Sullidenn and Tahoe have been ussed to
t resource at Shahuindo. Reverse circulation ((RC) (604 ho
model and estimate the oles) and diaamond
drilling (435 holes) havve both been carried out on
o the propeerty. The cutt-off date for drill data inclusion
in the resource modeel is 15 Apriil 2015. Tab
ble 10.1-1 is a summary of the drillinng included iin the
resource model.
Table 10.1-1 Shahuindo Drillling Summa

ary
Diamond Core Reve

erse Circulatio
on Total Drill Totall
Com
mpany Year
Number Me
eters Numb
ber Meterrs Holess Meterrs
Attimsa 1992 - - 11 744 11 744

Asarco 19
994-1996 55 8,105 31 3,681 86 11,7866
Southerrn Peru 19
997-1998 16 1,818 800 9,755 96 11,5733
Sulliden 20
003-2012 352 72
2,913 2488 42,4777 600 115,389
Rio Alto
o 20
014-2015 12 1,258 2344 23,2644 246 24,5222
Total 1992-2015 435 84,094 604
4 79,921 1,039 164,015
ority of the RC drilling completed

The majo c byy Rio Alto iin 2014 and 2015 was w
within the cuurrent
resource. The databaase also inclu
udes twelve diamond corre holes thatt were drilled
d for geotecchnical
purposes and subsequeently sampled
d for analysess. The major ity of the drillling in the oxxide domain w
within
the resou
urce is on a nominal
n 25m x 25m spacin
ng due to thee extensive R
RC infill progrrams conductted in
2014 and 2015. A drill hole locatio
on map show
wing all holes used for thee resource estimate is sho
own in
Figure 10..1-1.
Drill holees in the reso

ource area haave been colllared at azim uths around 35 degrees o
or 215 degreees to
intersect the main stru
uctural trend of the depossit at a high aangle. In som
me areas of thhe resource, aand in
ploration targgets away from
other exp m the main mineralized
m zo
one, holes aree drilled at a vvariety of azim
muths
to attemp
pt to intersect local structural features at high anglees or due to ttopographic rrestrictions on drill
site locations.
mpany notes that

The Com t there arre minor diffeerences in thhe number off drill holes aand meters d
drilled
from proggrams conduccted prior to
o and including 2012 whenn comparing tthe database acquired from
m Rio
Alto in 20
015 to the drrill totals rep
ported in Sullidens 2012 ttechnical repo
ort. These d
differences arre not
material to
t the projectt.
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Page81
Shahuindo Min
ne, Peru
Figu
ure 10.1-1 Shah
huindo Drill Hole
e Location Map
Page82

port
Upon its acquisition of

o Rio Alto in
n April 2015, Tahoe has ccontinued drilling diamond
d core and R
RC for
infill, step-out, geotech
hnical, hydrolo
ogy, and cond
demnation puurposes.
10.2 Drilling
D Methods
M and
a Equip
pment
The follow
wing descripttions of drillin
ng equipmentt and proced ures for exploration proggrams prior tto Rio
Altos 2014 drill program are summ
marized from Defilippi, et. aal. (2012).
Tahoe haas no informaation regardin

ng Atimmsass drill contracctor or the ttype of equippment used iin the
1992 drill campaign in which they drilled
d 11 RC holes (744 m
meters). Revieew of the datta on cross seection
paring it to Sullidens an
and comp nd Tahoes proximal
p dri ll data suggeests the Atim
mmsa data tto be
sufficientlyy reliable for inclusion in the
t resource model databaase.
Asarco reetained Geoteec S.A. (Geottec) for theirr diamond driill programs iin 1994 throuugh 1996. G
Geotec
used a Lo
ongyear wireeline diamond
d drill, drillin
ng HQ (63.5 millimeter ccore diameteer) and NQ (47.6
millimeterr) core. Corre recovery was
w reported to be consisttently better than 90% (Fleetcher, 1997,, cited
by Saucieer and Poulin
n, 2004). Assarcos RC drill
d holes weere generally drilled dry with good saample
recovery (Saucier and Poulin, 2004
4); Tahoe hass no informattion on Asarccos RC drill contractor o
or the
type of drrill rig used.
Southern Peru used Andes Drilling and Podiur as

a their RC annd diamond ddrill contracto
ors, respectivvely, in
1997 and 1998. Soutthern Peru drilled
d HQ co
ore in 1997, reducing to
o NQ in 19998. Tahoe has no
on on the typ
informatio pe of drill rigs used.
Forage Orbit S.A. drilled for Sullideen in 2003 and

d 2004, usingg a skid-mounnted drill rig. In 2007, Sullidens
drill contrractor was MDH
M Bradley SAC (MDH Bradley),
B who
o employed a skid-mounteed rig. From 2009
to the end of 2011, MDH Bradley and
a AK Drilling Internatio
onal (AK Drillling) were thhe drill contraactors
hahuindo Pro
for the Sh oject. MDH Bradley
B condu
ucted all the diamond drillling, using a vvariety of skiid and
track-mou
unted electric-hydraulic diamond
d drill rigs (mostlyy LF70 rigs). AK Drillingg used a Foreemost
Prospecto
or 750 Buggy with auxiliaryy booster and
d compressorr to completee the RC drill program.
Sullidens core holes were

w generally drilled usin
ng HQ tools. However due to ground
d conditions, some
2003 and
d 2004 holess were drilleed using NQ
Q tools. In 2010 and 2011, limited PQ drilling (85.5
millimeterrs) was done for metallurggical and twinning purposees.
Sulliden used
u a varietyy of RC ham
mmers that raanged from 44 inches to
o 5 inches in diameter. Dry
samples were
w preferreed over wet samples, and
d generally a frontal ham
mmer was useed to retrievve dry
samples. Conventionaal hammers were
w used forr wet sampless; a tricone w
was sometimees necessary when
ground co
ondition weree very poor.
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Operatorrs prior to Sulliden placed core into corrrugated plasttic core trayss with depth m
markers to denote
each drill run. Sullideens HQ and
d NQ core was
w placed innto wooden boxes with w
wooden bloccks to
denote eaach drill run. Between 20
007 and 2012,, a liner was ffitted into the wooden bo
oxes to help retain
all the maaterial produ
uced by drillin
ng. PQ coree was placedd into plastic boxes with plastic separrators.
Boxes contain either three
t meterss of HQ coree, four meterrs of NQ corre, or two m
meters of PQ core.
xes were seccurely sealed and delivereed once a dayy, by truck, tto core-loggiing facilities aat the
Core box
exploratio
on camp in Saan Jos.
Asarco an
nd Southern Peru bagged RC cuttings in the field, and a refereence chip trayy was collectted, at
two meteer intervals. Sullidens
S RC cuttings werre sampled onn 1.5 meter iintervals. Thirty percent o
of the
cuttings of
o each individ
dual sample were
w bagged and sent to the laboratorry for analysees. The rem
maining
70 percen
nt of the sample cuttings were
w bagged and kept as rrejects. Two
o reference chhip trays, onee with
a complette sample an
nd the other with a sieved sample (onne millimeterr mesh), werre collected aat the
same 1.5 meter intervaal.
Rio Altos 2014-2015

5 drill prograam was execcuted by Expplomin del PPeru (RC annd diamond ccore).
Diamond core was geenerally HQ and
a to a lesser degree N Q size, depeending upon gground condiitions.
Average core
c recoverry was 95%. Reverse circculation drillinng utilized 5
-inch (133m
mm) diameter face
sample haammers and achieved an average
a recovery of 90%. Rio Alto fo
ollowed the ssame RC and
d core
sampling and
a handling procedures as
a Sulliden.
10.3 Collar
C Surveys
Drill collaar northing an

nd easting coo
ordinates are located in reelation to thee UTM WGS884 coordinatee grid.
In 2002 and 2003, Val dOr Geofisica del Peru (V
VDG) establiished the expploration coordinate grid w
with a
differentiaal GPS with sttations locateed on the cro
oss-lines at 500 meter interrvals. In addittion to establlishing
the explo
oration grid, VDG
V also relocated and resurveyed
r drrill-collar locaations from hhistoric camppaigns.
Upon com
mpletion of Sullidens
S 200
03 through August
A 2010 ddrilling, drill hole collars were surveyyed by
VDG usin
ng differentiaal GPS. In 2009,
2 Horizo
on South Am
merica S.A.C (Horizon) w
was contracteed by
Sulliden to perform an
n aerial surveey of the Shaahuindo prop erty and creaate a two meeter contourr map.
Beginning in Septembeer 2010 and through 2015, drill holee collars werre located using a total sttation
utilizing th
he aerial survvey points established by Horizon
H as co
ontrol points.
The collarr elevations of

o all pre-2009
9 drill holes were
w back-intterpolated (i.ee., pressed)) to the two m
meter
contour topographic
t map
m created by
b Horizon in
n 2009.
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10.4 Downhole
D e Surveyss
Downholee survey data are availab

ble for 589 core and RC holes, correesponding to approximateely 56
percent of
o the numberr of drill holess in the datab
base used for the resourcee estimate.
Survey daata are not avvailable for th

he 193 drill holes
h compleeted by Attim
msa, Asarco, aand Southernn Peru
between 1992 and 199
98 and for 53
3 of the 600 drill
d holes com
mpleted by Suulliden from 22003 to 20122. The
unsurveyeed drill holess are relatively shallow (aaverage depthh of about 125 meters), and thereforre any
downholee deviation iss considered minor and not likely to
o cause any appreciable uncertainty iin the
position of
o data points along the drill hole trace.
Prior to 2009,
2 Sulliden
ns downhole surveys conssisted mostly of acid tests with minor uuse of Tropari and
Sperry Su
un single-shott tools. From
m 2009 to 2012, downholee surveying w
was primarily done using FFlex-it
multi-shott survey toolls, with lesseer use of Refllex Easy-Shott and Maxibo
ore II tools. Downhole ssurvey
readings were
w taken at
a approximaately 65 meteer drill depthh intervals, w
with the first reading withhin 20
meters off the collar. Sullidens co
ore holes generally have tw
wo to three downhole suurvey readinggs per
hole with
h the bottom
m readings usually within 50
5 meters off the final drrill depth. The depth inttervals
between survey readings are variaable, depending on the to
otal depth off the core ho
ole; the maxximum
interval between
b surveey readings is 100 meterss. Nearly alll of the Sullidden RC holess have two ssurvey
readings at
a regular 15 meters and 75 meters drrill depths. T
The RC holess have an aveerage drill deppth of
180 meters with a max
ximum depth of 309 meters so, for mo
ost RC holes, the bottom 100 to 200 m
meters
urveyed.
were unsu
AMEC reeported (Wrigght et al., 2010b) that a deflection

d stu dy was carrieed out based
d on Flexit, R
Reflex,
and Maxib
bore II data from 28 core and 10 RC drill
d holes dri lled in the 20003, 2007, annd 2009 camppaigns.
The averrage deflectio
on of the diamond drill holes was 1.8 meters o
of deflectionn per 100 m
meters
downholee, and the avverage deflecction of the RC holes w
was 4.8 meteers deflectionn per 100 m
meters
downholee. A more comprehensiv
c ve deflection study compl eted by MDA
A (Defilippi, et.al., 2012) on all
2009 thro n average defflection for evvery 100 meeters down ho
ough May 2011 drill holess indicated an ole of
2.9 meterrs and 9.4 meters for thee core and RC
R holes, resspectively. A
As the RC deeflection analyysis is
based on two readings per hole spaced at a regular 60 meter dow
wnhole intervval, the 9.4 m
meter
n is an extrapolated valuee that may not
deflection n be indicaative of the ttrue deflectio
on at greater drill
depths.
orm downholle surveys du

Rio Alto did not perfo uring their 20014-2015 drilll campaign. T
The average depth
of Rio Alttos drill holes was about 100 meters, so
s downhole deviation thaat occurred iss considered to be
minor and
d not likely to
o cause uncerrtainty in the position of ddrill hole. Taahoe initiated downhole suurveys
of all drill holes upon the
t acquisition
n of Rio Alto in April 20155.
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Page85

port
10.5 Drill
D Logg
ging
To standaardize the vaarious geologgic logging no

omenclature ffrom Atimmssa, Asarco, aand Southern Peru
drill data, Sulliden relo
ogged the maajority of thee core and R
RC chips from
m holes drilleed by the preevious
operatorss and checked
d the pre-exissting databasee against the o
original assayy certificates.
Between 2003 and 2010, Sulliden logged samplee intervals, allteration, minneralization, aand rock typee data
in digital spreadsheet forms. Drrill logs reco
orded litholo
ogy, fracture orientation, oxidation, ssulfide
mineralizaation types an
nd intensities, and alteratio
on type and iintensity. Sam
mple recoverry percentagees and
Rock Quaality Designattion (RQD) were
w also reccorded. In 22010, Sullidenn introduced the use of lo
ogging
software (GEOTIC) to
o record geo
ologic and geo
otechnical daata. Logging by Rio Alto geologists in 2014
and 2015 used a simillar nomenclaature to the Sulliden systeem, using thee GMAPPER recording syystem.
Tahoe has continued with
w the loggging procedurres and nomeenclature estaablished by Sulliden and reefined
by Rio Altto.
Rio Alto undertook

u a major relogging program of
o existing drrill core on 1000m centers in 2015 usingg APT
geologicall consultants, a local Perruvian geologgical consultaancy. The ppurpose was to normalizze the
lithology data in the database
d for use in building a more ro
obust geologgy model in ppreparation ffor an
updated resource
r mod
del and estim
mate using gro
ouped siltstonne-, sandstonne-, mixed saandstone/siltsttone-,
breccia-, intrusive-, an
nd colluvium-dominant ro
ock packagess that correspond to the geometalluurgical
domains. All other drill
d holes in the database that were nnot relogged were recoded into the aabove
lithologic categories.
All drill co
ore beginningg with the 200
03 Sulliden drrill campaign tthrough 20155 has been phhotographed.
10.6 Drill
D Data
abase
The datab
base used byy Tahoe for the
t current resource
r esti mation was ffinalized on 15 April 2015 and
includes all
a drill data up through RC hole SH
HA-R15-234 aand core ho
ole SHA-D15-002. The project
database has a total of
o 103,378 go
old assays, 102,140 silver aassays and 844,466 total suulfur analysess. The
database also
a includes a 31-element suite of trace element aanalyses for m
most holes drrilled from 20007 to
the present.
Tahoe considers the database

d to bee of sufficientt quality for uuse in resourcce estimationn (see Sectionn 12
Data Verification).
10.7 Core
C Rec
covery
In the 2012 NI 43-101 technical report

r preparred on behal f of Sulliden, MDA reporrted the resuults of
their exam
mination of the relationsh
hip between core
c recoveriies to gold grrade, particullarly evaluatinng the
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Page86

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possible grade
g loss duee to loss of fines in the driilling process . MDA concluded the daata suggests tthat, if
present, this
t grade losss is limited to
o a small samp
ple populationn and would not have a siggnificant impaact on
the resource estimate (Defilippi, et. al., 2012).
Tahoe has not perform

med any furth
her study on the relationsship between core loss annd gold grade since
the vast majority
m of drrilling compleeted for the resource
r moddel and estim
mate since Rio
o Altos acquiisition
of Sulliden
n has been RC
C (234 holes)) rather than core (12 holees).
10.8 Comparis
C son of Co
ore and Reverse
R C
Circulation
n Drilling
g
In 2010, AMEC
A examin
ned the relatiionship of gold values betw
ween RC andd diamond drilling by compparing
paired-sam
mple plots fo
or RC and diamond drill sample pairs that were w
within 5 meteers and 10 m
meters
apart. AM
MEC reporteed that there was no statistically signifiicant sampling bias betweeen RC drillinng and
diamond drilling
d (Wrigght et. al., 2010b).
MDA com
mpleted an an
nalysis of the RC and coree gold assay ddata using the 2012 drill d
database and came
to a similar conclusio
on as the AM
MEC study (D
Defilippi, et. aal., 2012). B
Both the com
mparative staatistics
0.8-1) and thee quantile-qu
(Table 10 uantile distrib
bution plot (FFigure 10.8-1) of drill datta from withiin the
mineral reesource boun
ndary indicateed little to no
o global differeence betweenn the core annd RC data. W
While
the averagge gold valuees for each drrill type are very
v similar, tthere was sligghtly more variation within the
core versus the RC daata, as indicateed by the high
her standard deviation andd coefficient o
of variation vaalues.
Table
e 10.8-1 Co
ore and RC G
Gold Analyse
es
(Defilippi, et. al., 2012)
Number
Drill Type Mean Median
M M
Min Max
x Std Dev
v CV
Samples
Core 28,521 0.492 0.225 0 59.9 1.241 2.535
RC 19,790 0.46 0.235 0 44.3 1.04 2.261
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Fig
gure 10.8-1 Comparativ
ve Plot of Co
ore and RC G
Gold Assays
(Defilippi,
( et. al., 2012)
To furtheer investigate potential diff

fferences betw
ween RC andd core drill ddata, Tahoe m
modelled estimates
based on RC data onlyy and RC + diamond
d coree data in the area south o
of the Choloqque fault. Thhe RC
drilling in this area is generally
g 25m
m x 25m spaceed and the di amond core is generally 550m x 50m sppaced.
The samee geologic model and esttimation paraameters weree used for both estimatees with the rresults
constraineed within a $1,400/oz Au pit shell. Thee results show
wn in Figure 10.8-2 demonstrate theree is no
appreciable difference between the gold estimates based on tthe RC only aand the RC+D
DDH datasetts.
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Figu
ure 10.8-2 Comparison of RC to RC
C+DDH Mode
el Estimates
(resourrce area south o
of Choloque faultt)
10.9 Tahoe
T 20
015 Drill Program
P
From 15 April 2015 (the

( cut-off date
d for inclu
usion of drill data in the rresource estimate) through 31
Decembeer 2015, Taho
oe continued infill drilling within
w the currrent resourcce and pit sheell, step-out d
drilling
to expand
d the resourcce, geotechnical, metallurggical and conddemnation drrilling in suppport of operaations,
and explo
oration drillin
ng at the prox
ximal San Lo
orenzo, La Chhilca, and Chholoque targeets. Post-resource
drilling co
ompleted by Tahoe in 2015
2 includess 180 core and RC holles totaling 332,717 meters, as
summarizzed in Table 10.9-1 and sho
own in Figuree 10.9-1.
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Ta
able 10.9-1 Post-Resourrce Drilling
Core Drilling RC Drrilling Tottals

Purpose
P /
Area No. Drill Meters No. Drill Meters No. Drill Meters
Holes Drilled Holes Drilled Holes Drilled
Infiill 6 3,090.8 19 2,716.0 25 5,806.8
Steep-out 10 2,856.4 40 9,186.0 50 12,042.4
Geeotechnical 16 946.5 0 0.0 16 946.5
Meetallurgical 8 1,262.8 0 0.0 8 1,262.8
Co
ondemnation 19 3,630.8 28 2,814.0 47 6,444.8
San
n Lorenzo 2 422.1 24 4,076.0 26 4,498.1
Choloque 1 300.0 4 1066.0 5 1,366.0

La Chilca 3 350.0 0 0.0 3 250.0
Totals 65 12,859.4 115 19,858.0 180 32,717.4
La
L Chilca
San Lorenzo
Southeast Extension
El Sauce
Fig
gure 10.9-1 Post-Resourrce Drilling
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10.9.1 Infill
I Drillin
ng
Six core holes and 19
9 RC holes totaling
t 5,807
7 meters weere collared iinside of the current resource
boundary and pit shell to aid in geeologic interp
pretation andd confirm graade estimatess in areas of wider
drill spaciing. The six core holes were
w extended to target sulfide mineeralization underlying the oxide
resource.
10.9.2 Step-Out
S Drilling
D
Ten core holes and 40 RC holes totaling
t 12,04 were drilled around the peeriphery of thhe pit
42 meters w
boundary to test for the
t continuattion of minerralization bey ond the currrently defined
d pit extents. The
uccessfully ideentified minerralization outtside of the nnortheast andd southwest margins of the pit
drilling su
shell thatt will be inco
orporated intto mine plan
n. Significantt intercepts from the steep-out drillinng are
tabulated in the Appen
ndix Post-Resource Drilll Intercepts.
10.9.3 Exploratio
E n
Thirty-fou
ur drill holes (six core and
d 28 RC) totaaling 6,114 m
meters were ccompleted onn the San Lorrenzo,
Choloquee and La Chilca targets prroximal to thee Shahuindo resource. T
The San Loreenzo and La C
Chilca
zones aree associated with northeast-trending structures thhat cross thee northwest--trending Sann Jose
anticline, which is the dominant co
ontrol of min
neralization aat Shahuindo.. The northeasterly structural
controls appear similar to the sttructural trends associateed with goldd-bearing veins in the nnearby
Algamarcaa district and
d likely repressent a second
dary structurral control att Shahuindo. Three core holes
were drillled at La Chilca
C to test oxidation levels and tthe continuity
ty of mineralization alongg this
northwest-trending strructure north
hwest of the current Shahhuindo resource. The ressults of this d
drilling
are discusssed in Sectio
on 24.2 - Exploration Poteential; significaant drill hole intercepts are tabulated in the
Appendix
x.
10.9.4 Other
O Drilling
Geotechn
nical Drilling Geotechn
nical drilling, consisting off 16 core ho
oles totaling 947 meterss, was
completed
d in and aro
ound the prroposed pit shell to validdate and auggment the rresults from prior
geotechniical characterrization studiees.
Metallurgiical Drilling Eight coree holes totalling 1,263 m

meters were drilled to o
obtain samplees for
additional metallurgicaal test work conducted by
b Tahoe (d iscussed furtther in Sectio
on 13.0 - M
Mineral
urgical Testingg). The drill holes were ddesigned to co
Processing and Metallu ollect represeentative sampples of
the primaary lithologic host
h rocks att Shahuindo.
Condemn
nation Drillingg Condemn
nation drillingg (i.e., sterilizzation drillingg) was focuseed primarily aat the
proposed waste dump
p, leach pad and
a crushing//agglomeratio
on infrastructture sites and
d included 199 core
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holes and
d 32 RC holes totaling 7,549
7 meters. The conddemnation drrilling in the waste dumpp area
identified shallow ore grade minerralization in colluvium andd bedrock seddiments outsside of the cuurrent
resource boundary. This materiaal is not included in the current minneral resourcce estimate, but a
portion will
w be mined and deliveered to the leach pad pprior to connstruction of the waste dump
foundation. Significan
nt intercepts returned fro
om the conddemnation drrilling are disscussed furthher in
Section 24.2
2 - Exploraation Potentiaal and tabulateed in the Apppendix (Post-Resource Drrill Intercepts)).
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11.0 SAMPLE
S E PREPA
ARATION
N, ANAL
LYSES A
AND SEC
CURITY
The inforrmation preseented in this section regarrding pre-20110 sampling, aanalyses, and security hass been
largely baased on the 2010
2 Shahuin
ndo PEA auth
hored by AM
MEC (Wrightt et al., 2010b), with addiitional
informatio
on from the 2012 Shahuin
ndo technical report autho
ored by Kapppes, Cassidayy & Associatees and
Mine Devvelopment Associates (Deefilippi, et. al.., 2012), and updated witth Rio Alto aand Tahoe d
drilling
informatio
on.
11.1 Drill
D Sam
mpling
11.1.1 Diamond
D Drill
D Core Sampling
S
Asarco, Southern
S Peru, Sulliden, Rio
R Alto, and
d Tahoe havee conducted diamond drilling operatio
ons at
Shahuindo
o.
Asarco drilled 55 diaamond core holes at Shaahuindo in 1 994 and 19995. Core samples weree split
lengthwisee using a sttandard manu
ual Longyearr-type splitterr. Tahoe hhas no furtheer informatio
on on
Asarcos sampling pro
ocedures. Southern Peru drilled 16 co
ore holes in 1997 and 19998. Tahoe hhas no
details about their sam
mpling proced
dures. The laack of inform
mation regardiing diamond drill core sam
mpling
procedurees by Asarco and Southerrn Peru is nott considered material, as iit accounts fo
or only 12 peercent
of the to
otal meters drilled
d by diam
mond drillingg methods annd the analyttical values o
obtained from
m this
drilling haave been corrroborated by subsequent drilling
d done bby Sulliden annd Rio Alto.
Between 2003 and 20

012, Sulliden drilled
d 352 diamond coree holes and ggenerally sampled the drilll core
over the entire length
h of the drill hole. Competent core was split lenngthwise withh a diamond--blade
w; disaggregaated core wass sampled using a spatula to take half of the samplle. Sample leengths
rotary saw
were typically 1.5 meeters but weere reduced to break sam
mples at lithhologic contaacts or changges in
oxidation state. Wheere core was completely disaggregated
d d, sample lenggths were chhanged to coincide
with drill runs to minim
mize mixing between
b samp
ples of differinng core recovveries.
2 up to 15 Ap
Post-2012 pril 2015, Rio
o Alto drilled 12 core holees and used thhe same proccedures as Sulliden.
However,, sample lenggths are typiccally two meeters where nnot reduced to break sam
mples at litho
ologic
contacts or
o changes in oxidation staate. Tahoe iss continuing w
with these core sampling pprocedures.
11.1.2 Reverse
R Ciirculation Chip
C Samp
pling
Attimsa, Asarco,
A South
hern Peru, Su
ulliden, Rio Alto,
A and Taho
oe have condducted RC drrilling operatio
ons at
Shahuindo
o.
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Attimsa drilled
d 11 RC
C holes in 199
92. Tahoe has
h no inform
mation on thee sampling prrocedures ussed by
Attimsa. The
T data from
m these RC holes is being used in the rresource estim
mate, but conntributes onlyy 0.5%
of the tottal data used for
f the estimaate.
Asarco drilled 31 RC holes duringg their exploration campaaign at Shahuuindo. Fletchher (1997) reeports
ng the Asarco RC drill campaigns, drrilling was mo
that durin ostly dry witth good sampple recovery.. RC
samples were
w collected
d and bagged on-site with samples splitt through a sttandard Joness-type riffle spplitter
multiple times to reduce the samplee to three to four kilogram
ms for shipmeent to the asssay laboratoryy.
In 1997 and 1998, Sou

uthern Peru drilled
d 80 RC holes at Shaahuindo, with standardized
d sample lenggths of
two meteers. Tahoe haas no other details
d regard
ding Southernn Perus samppling proceduures. The Souuthern
Peru data accounts forr 7.1% of the total data useed in the reso
ource estimatte.
Sulliden completed
c 24
48 RC holes in 2009, 201
10, and 2011 , with standaardized sampple intervals o
of 1.5
meters. Different drillling and sampling procedu
ures were ussed for dry vversus wet grround as desccribed
below. Over
O 80% off the meterage completed
d was drilledd dry. The following driilling and sam
mpling
descriptio
ons are taken verbatim fro
om the 2012 Shahuindo
S tecchnical report
rt (Defilippi, eet. al., 2012):
Drillingg in dry grounnd. In most cases, a 5

-inch frontal recuperation hammer drill was used
d with
pressu
urized air. In
n exceptional cases, a con
nventional 5
-inch hamm
mer was used
d based on grround
conditions. Samplles were redu
uced using a riffle splitter.. The reject (70%) was rretained for ccheck-
assay sampling. Samples weere collected
d in polyethyylene bags aand were id
dentified withh the
correesponding sam
mple number. Each samplee was sealed aafter insertingg the laborato
ory tag numbber.
Drillingg in wet grounnd. When in

ntersecting grround water, argillaceous material in co
ontact with w
water,
or heeavily fractureed ground, prressurized airr with minimaal water wass used with a conventionaal 5-
inch SD5
S hammer. Alternativeely, a tricone bit was usedd where the recovery of ccuttings was poor.
A gyrratory splitterr was used to
o reduce sam
mple size to a 30/70 split.. Samples w
were collected
d with
filter bags in truncaated buckets in order to avoid
a spills orr contaminatio
on.
A double-bagging systeem was incorporated for samples to bbe forwardedd to the lab. A cloth bagg with
low filtrattion capacity was used inside a micro-p
porous cloth bag with highh filtration caapacity. If thee bags
were filleed to capacitty, both werre tied-off seeparately, taggged, left forr filtering, annd dried prior to
transportation to the primary assaay laboratory. The rejectts were receiived in a clotth bag and leeft for
filtering and
a drying prrior to beingg bagged in a polyethylenne bag, taggeed, and storeed. Where reject
samples were
w too larrge for a singgle bag, more than one ssample was often obtaineed. The ressulting
additional bags filled with
w the corresponding samples and w
water from tthe same driilled interval were
filtered an
nd dried before being com
mbined in one polyethylenee bag, which w
was then idenntified and sto
ored.
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Post-2012
2, Rio Alto an
nd Tahoe have used the saame procedurres as Sullidenn; however saample lengthss have
been incrreased to 2 meters due to sampling practicalitiess and better sample lenggth accuracy when
physically taking the saample.
11.1.3 Sample
S Sto
orage
Sulliden created
c two secure core--storage faciliities in the ccity of Cajam
marca. Workk to centralizze the
storage of
o all existingg core at the facilities in
n Cajamarca was compleeted in 20099. Since 20009, all
exploratio
on core generated on the project has been
b being se nt to Cajamaarca for storagge.
Archived drill core is stored in wo

ooden and co
orrugated pla stic boxes unnder cover att the core-sttorage
facilities. Core boxes are in racks and
a stacked by
b hole numbeer.
RC and laaboratory co
oarse rejects and pulps arre stored at the project ssite in a secuure metal building.
Coarse reejects are sto
ored in labelleed plastic baggs and organizzed by hole aand campaign. Pulps are sstored
in envelop
pes in cardbo
oard boxes.
Stored co
oarse rejects and pulps aree in varying co
ondition. Som
me materials from previous operators were
reorganized and transfferred to new
w plastic bags by Sulliden tto prolong theeir useful life and make locating
individual samples mo
ore convenient. An inveentory of pro
oject materiaals including certificates, core,
coarse reejects, and pu
ulps was com
mpiled in 200
09; Rio Alto,, and now T
Tahoe, has m
maintained thee drill
sample invventory records.
11.2 Sample
S Preparatio
P on and Analysis
Tahoe hass limited information abou

ut sample preeparation andd analyses for the drill proggrams prior tto the
drill progrrams completted by Sullideen.
11.2.1 Atimmsa
A
Atimmsa used SGS dell Peru S.A.C. (SGS) as the primary labo
oratory for thheir 1992 drillling. Tahoe hhas no
further deetails and does not consid
der the lack of informatio
on to be matterial to the resource esttimate
due to thee low percentage of data from
f this dataa set (0.4%) w
when comparred to the overall drill dataabase.
Tahoe do
oes not havee information
n regarding SGSs
S laborattory certificattion at the ttime of Atim
mmsas
drilling prrogram.
11.2.2 Asarco
A
During Assarcos drill programs,
p all drill-hole sam
mples were a nalyzed for ggold and silver by one-assaay-ton
fire assay.. Asarco useed SGS to anaalyze their 19
994 samples. For their 1995 drilling, A
Asarco used Skyline
Laboratorries, Inc., SGS, CIMM Perru S.A., and Actlabs, Inc. For Asarco
os 1996 drillling, SGS waas the
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primary lab. SGS, Skyline and Actlabs

A are currently
c ISO
O/IEC 17025 certified, buut Tahoe haas not
determineed laboratoryy certifications at the time of Asarcos w
work.
11.2.3 Southern
S Peru
P
Tahoe haas no details regarding sample
s prepaaration or annalysis for So
outhern Peruus drilling. T
Tahoe
considers the risk to be
b minimal to
o the estimatee as this data set accountss for only 7.1%
% of the dataa used
in the esttimate. Assay certificates from
f the 1997 and 1998 ccampaigns sho
ow that sampples were anaalyzed
by CIMM in Lima for gold and silvver plus copp
per, lead, zincc, molybdenuum, arsenic, bbismuth, antim
mony,
and mercury (Wright et al., 2010b)). Southern Peru also re--assayed five drill holes frrom Asarcos 1994
drilling at CIMM in Lim
ma.
11.2.4 Sulliden
S
Between 2003 and 2012, Sullidens sampling and
d sample dispaatch for the SShahuindo Prroject were caarried
out underr the supervision of Sulliden staff. Sam
mples are sennt to ALS Minnerals (ALS, fformerly know
wn as
ALS Chem
mex) in Lima for sample preparation
p an
nd analysis. C
Certificates w
were issued bby ALS digitally and
on paper. The ALS lab
boratory in Liima is ISO 90
001:2008 and ISO 17025:20005 certified..
Samples were
w receiveed at ALS, entered
e into the laborattory informattion managem
ment system
m, and
weighed. Samples werre dried and crushed
c to 70
0 percent passsing plus two
o millimeters.. Crushed samples
were splitt with a riffle splitter to obtain
o 250-graam sub-sampples, with the sub-samples pulverized uusing a
ring mill to
t 85 percentt passing 75 micrometers.
m
Between 2003 and 2012, gold was assayed with

h a 50-gram ffire assay (FA
A) with atomiic absorption (AA)
or samples with greater th
finish. Fo han 10 g/t Au
u in the initiaal FA-AA assaay, the fire aassay was reppeated
using a gravimetric finish.
In 2003 and 2004, silveer was assayeed from a 5-ggram split, whhich was digeested by aquaa regia and reead by
AA (ALS method AA4
47); ALS method AA46 was
w used for ssamples with assay values exceeding 1000 g/t
Ag (Saucier and Poulin
n, 2004; Sauccier and Buch
hanan, 2005).. Between 22007 and 2012, a separatee split
n and digested in aqua regia
was taken r for anaalysis with innductively co
oupled plasmaa atomic em
mission
spectrosccopy (ICP-AE
ES) to determ
mine 31 majo
or and trace elements inccluding silver,, copper, arrsenic,
bismuth, and
a antimonyy (Wright et al.,
a 2010b). For
F samples hhaving greater than 100 A
Ag g/t, a silver assay
was carried out from
m another 5-ggram split, which
w was diggested in aquua regia and read by AA
A. For
samples having
h greaterr than 1,000 Ag g/t, silverr was assayedd by a 50-graam fire assayy and a gravim
metric
finish. Meercury was an
nalyzed with the
t cold vapo
or/AA methodd.
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For the 2003

2 drilling, a total of 2,4
435 samples were assayeed for gold, aand pulps forr each gold saample
above 0.3
3 g/t Au in mineralized
m zo
ones were ree-assayed for silver (Sauciier and Poulin, 2004). Sttarting
with the 2004
2 drilling, silver was asssayed for all mineralized
m inntersections ((Saucier and B
Buchanan, 20005).
11.2.5 Rio
R Alto
Reverse circulation
c and core sam
mples from Rio
R Altos 20014-2015 drrill program were analyzeed by
CERTIMIN
N laboratory in Lima. Go
old was assayyed using a 500-gram fire asssay with an atomic absorrption
finish (CE
ERTIMIN method IC-EF-01). When thee result was ggreater than 110 g/t Au in the initial fire assay,
the fire asssay was repeeated using a gravimetric finish
f (CERTIIMIN methodd IC-EF-10). T
The procedure for
silver analysis used by CERTIMIN is
i the same as
a the ALS m
method used bby Sulliden, bbut did not innclude
metric analysiis for sampless having resullts greater th an 1,000 g/t A
FA/Gravim Ag. The CER
RTIMIN laborratory
is ISO 900
01 certified fo
or geochemiccal, metallurgical and enviro
onmental sam
mple analyses.
Tahoe co
ontinues to use
u the CERT
TIMIN laboraatory in Limaa as its primaary assay labb for its conttinued
drilling at the Shahuind
do project.
11.3 Bulk
B Density Dete
erminatio
ons
The Shahu
uindo Projectt database co
ontains 1,411 specific gravitty measurem
ments. The measurements were
taken during various drill campaaigns on drill core from
m throughouut the deposit. Samplees for
ment have beeen collected from
measurem f all signifficant rock typpes along thee extent of the deposit.
In 2004 and
a 2005, a to
otal of 89 drrill core samp
ples were colllected and seent to ALS inn Lima for sppecific
gravity deetermination (Saucier and
d Poulin, 200
04; Saucier aand Buchanan, 2005). T
The analyses were
completed
d on drill corre from 49 co
ore holes fro
om the 1998, 2003, and 20004 drill campaigns. Taho
oe has
no inform
mation on the methods useed to determiine specific grravity by ALSS. The currentt database inccludes
87 of thesse determinattions due to incomplete
i in
nformation onn two samplees.
In 2010, an
a additional 353 core saamples were sent to Kapppes, Cassidayy & Associatees (KCA) in Reno,
Nevada fo
or specific graavity measureements. Samples sent to KCA for meaasurements w
were from 122 core
holes from
m Sullidens 2009
2 and 2010
0 drill campaiigns.
In 2011 and 2012, Sulliden submitteed 971 core samples

s from
m all core drilling campaignns executed o
on the
or density deetermination.. Laboratoriies selected were KCA aand ACME LLabs in 2011 (580
project fo
samples) and
a ACME an
nd SGS in 2012 (391 samp
ples). The AC
CME and SGS laboratoriees are both lo
ocated
in Lima, Peru.
P Drill co
ore specific gravity
g measurements connducted by K
KCA, ACME, and SGS useed the
coated im
mmersion/watter displacemeent method.
Tahoe hass not conductted further bulk density deeterminationss.
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11.4 Sample
S Security
S
From 200
03 through 2009,
2 all drill samples co
ollected on the Shahuinddo Project w
were under direct
supervisio
on of Sulliden
ns staff up to
o the momentt they were shipped by bbus from Cajaamarca to thee ALS
sample prreparation faccility. Between 2010 and 2012, sampl es were shippped directly from the cam
mp to
the laboraatory facilities. Rio Alto and
a Tahoe haave since chaanged the prim
mary laborato
ory to Certim
min in
Lima. Sam
mples were drriven by Rio Alto
A employees directly to
o the Certiminn laboratory in Lima.
Chain of custody proccedures consist of filling out

o sample suubmittal form
ms that are phhysically hand
ded to
the laboraatory with sam
mple shipmen
nts to make certain
c that alll samples aree received by the laboratory.
11.5 Quality
Q Assurance
A e/Quality Control
11.5.1 Asarco
A
Accordingg to Saucier and Poulin (2004),
( Asarcco included sstandards preepared internnally by them
m with
every batcch of drill sam
mples for most of their drrilling, and thee standards haad highly reproducible golld and
silver valu
ues. Tahoe has
h no detailss on those sttandards. Acccording to FFletcher (19977, cited by Saaucier
and Poulin
n, 2004), [Th
he laboratoryy] generally has
h very goodd precisioniin their assayys, but their rresults
are typicaally 5-7% low for gold, and
d 11-15% low
w for silver reelative to the standards. T
This discrepaancy is
probably due to matriix effects in the
t standardss which have carbonate co
ontent, versuus the routinee drill
samples which
w have no
one.
A total of 1,835 duplicate samples were prepared and sentt to a separatte laboratoryy as a check assay.
Accordingg to Fletcherr (1997, cited
d by Saucier and
a Poulin, 22004), in geneeral, the checck assays valiidated
the original assay valuees.
Tahoe has no reason to

t doubt Flettchers (1997)) analysis andd conclusionss about Asarccos assay datta, but
onfirm the wo
cannot co ork as Tahoe has no recorrd of the resuults for Asarco
os standardss or check asssays.
11.5.2 Other
O Drilling Progra
ams Prior to Sulliden
n
Tahoe hass no informattion on qualitty control or quality assurrance (QA/QC) that may have been ussed by
Atimmsa or Southern Peru. This iss considered to
t be of mini mal risk to T
Tahoe given thhe small amouunt of
nvolved when
samples in n compared to the total daatabase.
11.5.3 Sulliden
S
dens 2003 drrilling, no blaanks, duplicates, or standaards were ussed to checkk the original assay
For Sullid
results. However,
H 200
0 pulps taken
n randomly within
w the minneralized inteervals were seent to SGS fo
or re-
assay for gold.
g These pulps were assayed for go
old by fire asssay with AA ffinish, with gravimetric finish for
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gold gradees over 5 g/t. Silver was assayed by multi-acid

m digeestion with ann AA finish. Saucier and P
Poulin
(2004) reported that there was a ggood correlattion betwee n the originall and check assays.
No blankss, site duplicaates, or stand

dards were ussed to check the results o
of Sullidens o
original assayss from
their 2004
4 drill prograam (Saucier and
a Buchanan
n, 2005). Ho
owever, 355 pulps were randomly sellected
from with
hin mineralizeed intervals by
b Sullidens geologists
g andd sent to Acttlabs in Lima for check asssaying
for gold and
a silver. Saucier and Bucchanan (2005
5) reported thhat a fairly go
ood correlatiion could be found
between the
t original values and thee reanalysis.
AMEC reeported that except for the m in 2003 and 2004, Sulliden did not apply
t reject check program
QA/QC procedures
p until
u their 200
09 drill program (Wright et al., 2010bb). In 2009, Sulliden instituted
analysis of
o commerciaally prepared
d standard reeference matterials, fine bblanks, field duplicates fo
or RC
drilling, co
ore duplicates for diamond drilling, and
d coarse-crussh reject and pulp duplicattes. The follo
owing
informatio
on for Sullidens 2009-20
010 drilling programs
p is ssummarized from the 20010 AMEC rreport
(Wright et
e al., 2010b), to which thee reader is refferred for addditional detail.
Forr the first stagge of their 20

009-2010 corre and RC drrill programs,, Sulliden analyzed 110 RC
C field
dup
plicates, 38 co
ore duplicatees, 99 coarse--crush reject duplicates, aand 99 checkk assays perfo
ormed
at SGS
S in Lima, in addition to fine blankks and four ccommercial sstandards included with saample
batches. AMEC concluded th
hat based on analysis of thhe results of sstandards and
d check assayys, the
accuracy of the gold assays was excellent, whereass based on annalysis of thee check assayys, the
accuracy of silveer assays was not as good as
a the accuraacy of the goldd assays (Wrright et al., 20010b).
Based on analysis of RC
R and core field
f duplicatees, AMEC conncluded that the sampling precision forr gold
was accep
ptable for thee resource esstimate used for feasibilityy-level analysis (Wright et al., 2010b). Silver
grades weere not analyyzed for the core
c and RC field duplicaates. Analysiss of the gold results of co
oarse-
crush dup
plicates indicaated that sub-sampling preecision was bbetter than geenerally acceepted limits. Silver
grades of coarse rejectt duplicates were
w not assayed.
Analytical precision is generally estaablished by th

he analysis off pulp duplicattes, two splitts of the samee pulp
analyzed during
d the saame time periiod, with the same analysiis method at the same labboratory. No
o pulp
duplicatess were analyzed as part of the 2009 Sulliden drill pro
ogram.
Analysis of
o 80 blank saamples found only two minor issues abbove a practtical detectionn limit of 0.002 Au
g/t, and a plot of grad
de of blanks versus
v previo
ous sample grrade showedd no correlation (Wright et al.,
2010b).
Sulliden completed
c a comprehensiive QA/QC testing
t progrram in 2011 and 2012, w
which includeed the
analysis of
o commerciaally prepared
d standard reeference matterials, fine bblanks, field duplicates fo
or RC
drilling, co
ore duplicatess for diamond
d drilling, and
d coarse-crushh reject and ppulp duplicatees. The laborratory
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analyses for
f the standaards, fine blaanks, RC field
d duplicates aand core dupplicates were completed aat ALS
while thee analysis of the pulp du
uplicates werre completedd at SGS. The MDA revview of stanndards
suggested
d that overaall the analyses of stand
dards suggestt that Sullideens gold anaalyses may bbe, in
aggregate, very slightly conservativve (Defilipp
pi, et. al., 20 12). There were 1,843 analyses of blank
material, with
w only two
o counting as failures at a nominal 0.01 g/t failure linne.
11.5.4 Rio
R Alto
Rio Alto completed a large RC and ore infill drill program in late 2014 and
d diamond co d early 2015.. The
primary laaboratory waas changed fro
om ALS to CERTIMIN
C onn the basis off high quality QA/QC and good
turnaroun
nd experienceed at the La Arena
A operatiions.
Blanks, sttandards and field duplicaates were in

nserted into the sample stream to check the QA
A/QC
process both
b in the field
f and at the
t CERTIMIN laboratoryy in Lima. B
Blanks showeed no evidennce of
contaminaation. Field duplicates sho
ow good repeeatability, althhough the ratte of insertionn is low and needs
to be incrreased. Review of the staandards results shows CEERTIMIN is aassaying low in the lower grade
ranges fo
or silver and,, to a lesserr extent, gold
d There apppears to bee a consistennt low bias aat the
CERTIMIN
N laboratory,, mainly affectting silver asssays.
Tahoe believes the ratte of insertion of control samples is accceptable for blanks and sstandards, althhough
low for RC
R field duplicates (Table 11.5-1). Taahoe has sincce increased the insertionn rate for RC
C field
duplicatess.
Table
T 11.5-1 Summary of QAQC Prrogram Appllicable for 20
015 Resource
e Estimate
DDH RC Duplicates Bllanks Standaards
Type
e Duplicates Blanks Stand
dards
Sample
es Samples (%) ((%) (%))
Geotechn
nical 586 27 4.6% 32 55.5% 331 5.3%
%
RC 11,631 166 1.4% 600 55.2% 5887 5.0%

%
DDH 373 17 4.6% 18 44.8% 220 5.4%

%
Total 959 11,631 210 1.7% 650 5

5.2% 63
38 5.1%
%
11.5.5 Blanks
B
Certified fine blanks were
w purchaseed from SGS and inserted into the sam
mple stream. The average grade
of the blaanks is 0.006 g/t Au and 0.3
0 ppm Ag. Blanks are uusually inserteed every 50m
m downhole in RC
holes and
d at or near the
t end of ru
uns of mineraalization in thhe diamond ccore. No failures are obsserved
when usin
ng nominal 0.0
012 g/t Au an
nd 0.6 ppm Ag
A upper acceeptable limits of tolerance;; well below a limit
that wou
uld affect thee resource estimate
e for either elem ent. There is no evideence of any extra
contaminaation after higgher grades are
a encounterred in the sam
mple prior to
o the blank, aalthough high grade
Pagge100

port
samples are
a somewhaat rare in thiss new dataseet. An exam
mple of the bblank control plots is show
wn in
Figure 11..5-1.
The use of
o fine blankss makes it eassy for the lab
boratory to iddentify the co
ontrol samplee. At this staage in
the projecct life for Shaahuindo, it is recommendeed that coarsee blanks be collected from
m coarse RC reject
material if it is demon
nstrated that homogenouss samples cann be preparedd. The inserrtion of coarsse RC
reject maaterial as blan
nks would make
m it much more difficuult for the laaboratory to identify the blank
control saamples.
0.1 1
0.09 0.9
0.08 0.8
0.07 0.7
0.06 0.6
Au(g/t)
Ag(g/t)
0.05 0.5
0.04 0.4
0.03 0.3
0.02 0.2
0.01 0.1
0 0
13/12//14 12/01/1
15 11/02/15
5 13/03/15 12/04/15 12/05/15
Au
u(g/t) Ag(g/t)
Figure 11.5-1 Blank

k Analyses 20
015 Drill Prog
gram
11.5.6 Field
F Dupliicates
Field dupllicate sampless from RC daata only have been analyzeed as there iss not a statisttically valid nuumber
of diamond core sam
mples for anaalysis (27 corre samples). Although tthe insertionn rate of RC
C field
duplicatess is low, theyy generally dissplay good to
o very good repeatability in most grad
de ranges forr both
gold and silver (Figuree 11.5-2 and Figure 11.5-3
3). The outlliers are raree and not exttreme, particcularly
given the observed nu
ugget variancce in the varriography. T
The repeatabiility of sampling at lowerr gold
grades clo
ose to the antticipated cut-off grade is accceptable (Figgure 11.5-4).
Pagge101

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Figure 11.5-2 Field Duplicates

D 2015 RC Drill P
Program - Alll Au Grade R
Ranges
Figure 11.5-3 Field Duplicates

D 2015 RC Drill P
Program - Alll Ag Grade R
Ranges
Pagge102

port
Figu
ure 11.5-4 Field Duplica
ates 2015 RC
C Drill Prograam - Au Grad
de Range 0.1g/t to 0.3g/t
11.5.7 Standardss
Four com
mmercially preepared standaards from SGS (Lima) werre reviewed. The standard
ds are ST05, ST06,
ST54 and ST50. The three lower grade standaards within tthis group haave gold results that are bbiased
ow. All silveer results aree biased low (Table 11.5 -2), with thee lower grad
slightly lo de silver stanndards
showing the
t most bias. These results suggest a calibrationn error at thhe CERTIMIN
N Lima laboratory.
The bias is systematic and follow up
p work is required.
Table 11.5
5-2 Summa
ary of Analyssis of Standarrds Used in 2
2015 Drill Pro
ogram
Control C
Control
No. of Certified
C Ce
ertified Bias
Sample Bias for S
Sample
STA
ANDARD Control
C Mean
M Au Me
ean Ag ffor Ag
Mean Au Au (%) M
Mean Ag
Samples
S (g/t) (g/t) (%)
(g/t) (g/t)
ST05 75 0.485 0.456 -6% 14.8 12.63 -15%
ST06 47 0.530 0.513 -3% 8.4 6.44 -23%
ST54 242 0.794 0.763 -4% 17.7 16.49 -7%
ST50 235 0.871 0.869 0% 23.4 22.51 -4%
Sample co
ontrol samplee charts are provided
p to display the sysstematic bias of the resultss for the stanndards
(Figure 11
1.5-5 to Figurre 11.5-8).
Pagge103

port
0.60
0.55
Au(g/t)
0.50
0.45
0.40
16//12/14 15/01/15 5
14/02/15 16/0
03/15 15/04/15
Au
uResult(g/t) STDA
Au(g/t) 2StdDev +2StdDev
Figure 11.5-5 Chart of Au Analysses of Standa

ard 05
0.95
0.90
0.85
Au(g/t)
0.80
0.75
0.70
0.65
0.60
13//12/14 12/01/15 11/02/15
5 13/03/15 1
12/04/15
Au
uResult(g/t) STDA
Au(g/t) 2StdDev +2StdDev
Figure 11.5-6 Chart of Au Analysses of Standa

ard 54
Pagge104

port
9.5
9
8.5
8
Ag(g/t)
7.5
7
6.5
6
5.5
5
19/12/20
014 19/01/2015 19/02/201
15 19/03/2015
A
AgResult(
(g/t) SttdAg(g/t) 2StdD
Dev +2SStdDev
Figure 11.5-7 Chart of Ag Analysses of Standa

ard 06
19.5
19
18.5
18
Ag(g/t)
17.5
17
16.5
16
15.5
15
13/12/20
014 13//01/2015 13/02/2015
5 13/03/2
2015 13
3/04/2015
AggResult(g//t) Std
dAg(g/t) 2StdDe
ev +2SStdDev
Figure 11.5-8 Chart of Ag Analysses of Standa

ard 54
Tahoe believes the QA

A/QC processs at Shahuind
do would bennefit from havving one stanndard closer tto the
anticipated cut-off graade (0.18 g/t Au) and onee higher gradde gold standdard to ensure that laborratory
n for higher grade
calibration g sampless is appropriaate.
Pagge105

port
11.6 Summary
S y Stateme
ent
Tahoe is of
o the opinion
n that the sam
mpling metho
ods, security, aand analytical procedures used at Shahhuindo
are adequate for min
neral resourcce estimation
n. While info
formation is lacking for the Atimmsaa and
Southern Peru data, itt represents only 7.6% of
o the datasett and is not considered tto have a maaterial
effect on the resourcee estimate. The author is not aware o
of any samplinng or assaying factors thaat may
materiallyy impact the Mineral
M Resou
urce estimatee discussed in Section 14.00.
A continu
uing program of specific grravity measurrements is reccommended due to the im
mportance off bulk-
density in the determin
nation of reso
ource tonnage.
4-2015 QA/Q
The 2014 QC program demonstratees no evidennce of laborratory contam
mination from
m the
analysis of
o the blank samples.
s The field dupliccates display good repeattability, particcularly arounnd the
expected gold cut-off grade
g to be used
u while mining. Standarrds are biasedd slightly low (gold) to verry low
(silver). This
T is unlikely to have an
ny material efffect on the rresource estim
mate, althouggh this issue needs
to be und
derstood and resolved.
Pagge106

port
12.0 DATA
D VERIFICA
V ATION
The Shahu
uindo drill ho
ole database has
h been subjected to fourr audits priorr to resource estimates in 2004,
2009, 2012 and 2015. The followin
ng is a summaary of the keyy features of tthose audits cconducted prrior to
the resource estimate reported herrein.
12.1 Met-Chem
M m 2003/2004 Audit
Site visits weree conducted in
i 2003 and 2004
2
The drill datab

base was commpared to th
he hardcopy aassay certificaates and geo
ologic logs wiith no
major
m errors were
w noted.
A total of 102 2 check samp ples were coollected and ssent to seconndary laborattories for annalysis,
with
w occasionaal local high variation
v enco
ountered on iindividual sam mples; howevver, global aveerages
off gold and silvver from the check samplees were in linee with the prrimary samplees.
The overall conclusion waas that the database waas sufficient for global reesource estimates
(SSaucier and Po
oulin 2004; Saaucier and Bu
uchanan, 20055).
12.2 AMEC
A 20
009 Datab
base Audit and Ve
erification
n
AMEC
A collectted 14 checck samples; thet results of which occcasionally showed locall high
vaariability, though there waas global agreeement to graades reportedd by Sulliden for both golld and
silver.
AMEC
A compleeted a compreehensive dataabase audit w which includedd review of thhe project geo
ology,
drrill hole logs, interpretatiions and drilll collar locattions, and 2886 re-analysees of pulp reejects,
du uplicate pulps, coarse cruushed rejectss, and field dduplicates fro
om reverse ccirculation cuuttings
frrom the 1994 4-2007 drill prrograms. AMMEC concludeed the resultss of the workk were sufficieent to
suupport mineraal resource estimation
e (W
Wright et al., 22010a, 2010b)).
12.3 MDA
M 2012 Databa
ase Auditt
The focus of thet MDA aud dit was on thee drill hole co
ollar, downhoole survey annd assay data. Spot
ch
hecks of geollogical and geeotechnical data were also o completed.. The Shahuindo database was
co
onsidered to be of high quality
q sufficient to suppo ort the resouurce estimatee and classificcation
(D
Defilippi, et. al., 2012).
MDA
M verified approximatelly 15 percentt of the pre-22010 drill datta to serve ass a confirmation of
th
he AMEC 200 09 audit. If an
ny discrepanccies were ideentified, MDA
A checked add ditional holess from
th
he same drill campaign.
c
Pagge107

port
A comprehenssive review of o 2,599 insertted standardss clearly dispplayed a consttant small neegative
om both stanndards and puulp duplicatess, when compared
biias of the primary laborattory (ALS) fro
to
o the check laaboratory (SG
GS).
There were 1,843 analyses of blank mateerial, with onnly two countting as failuress at a nominaal 0.01
g//t failure line.
A high level of repeatability was observeed in all formss of field duplicates.
12.4 Tahoe
T 20
015 Datab
base Audiit
Tahoe co
onducted an audit
a of the 2014-2015
2 Rio
R Alto assayy database (ddata through 15 April 20115) by
comparingg the analyticcal results reeported in th
he hard copyy certificates received fro
om the laborratory
(CERTIMIN) to the diggital databasee used for thee resource esstimate. Tahoe compared
d 100% of thee gold
and silver assays in thee database agaainst the laboratory certifi cates with no
o errors deteected.
12.5 Statemen
S nt on Datta Verifica
ation
The QA//QC program

ms conducted
d on the Shaahuindo sam
mples and thee multiple daatabase auditts are
sufficient to ensure that
t the dataa used in th
he resource estimate is valid. Whilee there are some
discrepancies regarding the silver standards
s useed by Rio Altto in 2014 annd 2015, this is not considered
material as
a silver has a negligible contribution to
o the econom ics of the pro
oject.
Pagge108

port
13.0 MINERA
M AL PR
ROCESSIING A
AND METAL
LLURGIC
CAL
TESTING
T G
13.1 Metallurg
M gical Testting Summ
mary
Cyanidatio
on and flotation testing prrograms havee been condu cted on composite samplees from Shahhuindo
by variouss companies starting
s aroun
nd 1996, as su
ummarized inn Table 13.1-1.
Table 13.1-1 Cya

anide and Flo
otation Testiing Programss on Shahuin
ndo
Ye
ear Lab
boratory / Com
mpany
1996 Daw
wson Metallurgiccal Laboratoriess / Asarco (calledd Boti Project)
2003-20
004 Heaap Leach Consultants / Compaia Minera Algam
marca
2009-20
012 KCA
A / Sulliden
2014 KCA
A / Rio Alto
2014-20
015 SGSS / Tahoe (Rio Alto)
A
2014-20
015 Tah
hoe (in-house tests at Rio Altoss La Arena facilitties)
on tests werre conducted by KCA from 2009 to 22012, by Rio A

Cyanidatio Alto in 20144 and 2015, aand by
Tahoe in 2015 on drill core and surrface sample composites. T
The results o
of the testing program indicated
excellent gold recoveries at both run-of-mine (ROM) and coarse crush sizes with low to mod
derate
reagent reequirements, implying ameenability to heeap leaching. Silver recoveeries are generally low.
Compacteed permeability tests on minus

m 25mm crushed
c sampples were connducted, bothh with and wiithout
cement. The results are variable with about one-third off the tests co
onducted in 2015 failing. The
results fro
om KCAs co
ompacted peermeability teests on -32mm
m compositees conducted in 2012 indicated
that mixin
ng of the mo
ore weathereed samples with
w competeent material w
would be reqquired to maaintain
permeabillity at 6 kg of
o cement perr tonne of orre. Two of tthe three KC
CA tests passsed the comppacted
permeabillity tests at a simulated heap
h height of
o approximattely 110 metters. There aare no comppacted
permeabillity tests avaiilable at coarrser crush sizzes. Therefo
ore, no definite conclusionns can be maade at
this time on the perrmeability chaaracteristics in a ROM o
or coarse crrushed multiple-lift heap leach
operation
n.
The projeected field gold and silver recoveries, reagent

r consuumptions, andd leach times on oxide maaterial
based on the available test work reesults from bo
oth ROM andd single-stagee crushing tessts are summaarized
in Table 13.1-2.
Pagge109

port
Table 13.1-2 Meta

allurgical Tesst Work Ressults
Para
ameter ROM Crush
% Au Reecovery 73% 80%
% Ag Recovery 7% 12%
NaCN Consumption
C 0.2 kg/t 0.3 kgg/t
Cement 0 6 kg/tt*
Lime 2 kg/t 1 kg/tt
Leach Time 80 days 70 dayys
Size, p80
0 ~150mm 60 to 855mm
*Cement addition based on
n screened minuus 75mm material
Figure 13
3.1-1 shows the locations of the driill holes and surface sam
mples that w
were used fo
or the
metallurgiical test worrk conducted
d by KCA an
nd Tahoe (R io Alto). Ass shown, thee samples sppatially
representt the ore body.
Figure 13.1-1 Locatiion of Metallu

urgical Drill Holes
Pagge110

port
13.2 Pre-2014
P Metallurrgical Tesst Summa
ary
Tests were conducted

d early in thee project life by Dawson Metallurgicall Laboratoriees (Dawson), KCA
p Leach Conssultants (HLC
and Heap C). Material tested
t by Daw
wson for Asaarco included
d fifteen oxid
de and
four sulfid
de compositees made from RC drill cutttings. Cyanidde bottle roll tests on thee oxide composites
and flotation tests on the
t sulfide sam
mples were conducted.
c
The test program initiiated by Asarrco is of limitted use as th e work was preliminary in nature and
d heap
leach column tests were
w not con
nducted. Ass such, this program is nnot mentioned further inn this
n.
discussion
13.2.1 Heap
H Leac
ch Consulta
ants Test Program
P
Heap Leaach Consultaants conducteed column leeach tests annd bottle ro
oll tests for Compaia M
Minera
Algamarcaa on oxide su
urface bulk saamples mainlyy taken from tthe northwesstern half of tthe ore body. The
column leeach tests were conducteed on samplees at sizes rranging from as-received (ROM) to minus
25mm.
overies in thee larger HLC column testss ranged from

Gold reco m 17% to 91%
%. The averaage test recovveries
and reageent consumpttions by crush
h size are summarized in Table 13.2-1. Eight of H
HLCs columnn tests
failed duee to permeaability issues. There were also a seeries of smalll column teests conducteed on
compositees crushed to
o minus 25mm
m and minus 75mm. All tthe minus 25m
mm tests exccept one faileed due
to permeeability issuess. The one minus 25mm
m small colu mn test andd the minus 75mm tests were
agglomeraated with 5 kg
k cement peer tonne oree. Results fro
om the failedd tests are not included iin the
summary.
Table 13.2--1 Summa
ary of HLC C
Column Leach
h Tests
Crussh Calcd Calcd NaCN N
Extraction Extraction
n Lim
me Cementt
Size
e Head Head Consump ption
Au % Ag % kg/tt kg/t
mmm Au g/t Ag g/t kg/tt
ROM
M 1.14 5.8 27 5 0.2 2.44 0
-150
0 1.18 6.1 40 7 0.3 0.944 3
-100
0 0.99 6.2 81 14 0.344 0.31 4.4
-75** N.A. N.A. 50 6 N.A.. 0 5
-25** 1.41 5.6 67 14 0.63 2.355 5
*Smalll column tests
Sodium cyyanide consumptions in th

he column teests ranged frrom 0.2 to 00.8 kg/t. In thhe tests that were
agglomeraated, 3 to 5 kg
k cement perr tonne of ore was added.
Pagge111

port
Gold reco
overies in thee bottle roll tests conduccted by HLC at minus 0.15mm (100 T
Tyler mesh) rranged
from 75%
% to 93% wh
hile silver reccoveries rangged from 13%
% to 39%. M
More detailed
d results from
m the
column and
a bottle ro
oll leach test program byy HLC can bbe found in tthe 2012 Feaasibility Study and
Technical Report (Deffilippi, et. al., 2012) and in
n HLCs final report, Inforrme de Cianuracion en Boteellas y
Columnas a Escala Pilotoo (Heap Leach Consultants, 2005).
The HLC results weree not used in the latest evaaluation due tto the unkno
own effect on recoveries d
due to
permeabillity issues. h many of their
Even though t tests w
went to com
mpletion, thee specific so
olution
application rate in seveeral of the teests had to bee decreased significantly tto maintain flow, in some cases
lowered to
t less than 2 l/hr/m2. These
T low ap
pplication rattes were meentioned in H
HLCs final reeport.
Channelin
ng may or maay not have been
b occurrin
ng in many off the tests. T
Therefore, itt is unknown if the
lower reccoveries in maany of the tessts were due to non-wettting of the maaterial being ttested.
on bulk surfacce compositees that were taken

KCA in their 2009 to 2012 test prrogram conducted tests o
from simiilar locations as four of th hat HLC testted. These rresults were used in this latest
he samples th
evaluation
n.
13.2.2 2009
2 to 2012 Kappes,, Cassiday & Associattes Test Prrogram
KCAs cyyanidation tessts were con
nducted on composites
c m
made from H
HQ and PQ d
drill core inttervals
taken in 2009
2 and 201
10 and on bu
ulk surface samples taken in 2011. The compositess were made from
core intervals ranging from surfacee to a depth of about 1660 meters. T
The surface bbulk samples were
mainly useed for coarsee material colu
umn leach tessts to simulatte leaching off samples at R
ROM sizes.
Coarse material
m leach tests were conducted
c on the bulk surrface samples at a p80 sizee of up to 2440mm.
The testss were condu
ucted on as-received com
mposites and on screened fractions o
of the compo
osites:
+100mm, -100+50mm
m and -50mm
m. The +100 and -100+500mm tests w
were conductted under flo
ooding
conditions. The gold
d and silver recoveries on
o the as-recceived compo
osites averagged 77% and 25%,
respectiveely. The testt results on the
t screened composites varied greatlly, partially due to permeability
issues in several
s of thee tests since the material teested was no
ot agglomerateed with cemeent.
There weere a total of 21 column leeach tests thaat were conduucted on com
mposites crusshed from P800 sizes
of 15mm up to 36mm
m. A total of 82 bottle ro
oll leach testss were conduucted on pulvverized and ccoarse
crushed composites.
c
Gold reco
overies in thee crushed oree column leach tests rangeed from 79% tto 94%. Averrage gold reccovery
at an averrage P80 crussh size of 22m
mm was 89%
%. Gold reco
overy appearss to be moree related to ssulfide
sulfur con
ntent than crrush size in the size rangges tested. The tests onn crushed co
omposites wiith an
approximate sulfide sulfur content of
o 0.5% averaaged 83% goldd recovery. SSilver recoveries in the crushed
material column
c tests were
w generally low and raanged from 7%
% to 21% andd averaged 177%.
Pagge112

port
A series of column leach tests utilizing vario

ous levels o
of agglomerattion polymerr at two solution
ngle compositte sample cr ushed to 21m
application rates on splits of a sin mm were co
onducted by KCA.
d from 89% to 91% and
Gold recovery ranged d averaged 990.6% with nno obvious d
differences inn final
recoveries due to polyymer addition
n or applicatio
on rate.
Sodium cyyanide consumptions in th

he crushed material
m colum
mn tests rangged from 0.38 to 1.17 kg//t and
averaged 0.82 kg/t. All
A composites tested exceept the ROM
M samples andd one at a crush size of minus
36mm weere agglomeraated with an average of 6 kg Portland T
Type II cement per tonne. The tests o
on the
coarse maaterial used hydrated
h lime as a source of
o alkalinity.
The averaage results off the ROM an

nd crushed ore column leeach tests andd on the screeened fractionns are
summarizzed in Table 13.2-2.
Table 13.2--2 Summa
ary of KCA C
Column Leach
h Tests
Avg Avg Calcd Avg Avg NaC CN
Avgg
Sam
mple Descriptiion Cru
ush/Screen Head Extraction
n Consump ption
% Sulffide
Size
S mm Au g/t Au % kg/t
ROM 129 0.41 77 0.28 0.066
Crushed Ore All 22 1.04 89 0.88 0.11
Crushed Ore (<0.1% Sulfide) 22 1.15 90 0.81 0.055
Crushed Ore (>0.1% Sulfide) 21 1.49 83 0.86 0.499
+100mm Screened Fraction +100 0.49 54 0.44 0.088
-100+50m
mm Screened Frraction -50 0.52 71 0.38 0.088
-50mm Screened Fraction -50 0.53 85 0.42 0.088
The KCA
A bottle roll test
t program included tests on pulveriized and crusshed composite samples. Gold
recoveries in the pulvverized bottlee roll tests raanged from 773% to 95% while silver recoveries rranged
% to 77%. Co
from 19% oarse bottle roll tests were conductedd on composite samples ccrushed at no
ominal
sizes of minus
m 90, 37.5
5, 25 and 19m
mm. Gold reecoveries rangged from 3% to 91% while silver recovveries
ranged fro
om 3% to 66%
%. Results fro
om the bottlee roll test pro
ogram are sum
mmarized in T
Table 13.2-3..
Pagge113

port
Table 13.2-3
3 Summary
y of KCA Bo
ottle Roll Lea
ach Tests
Avg P80 Avg Calcd Avg Avg Avg NaaCN
Av
vg
Test Description
D Crush Size Head Extractio
on Extractio
on Consump ption
% Sullfide*
mm Au g/t Au % Ag % kg/tt
Pulverized 0.075 0.99 87 42 0.444 0.113
nominal -90
0mm 41.5 0.44 59 5 0.366 0.001
nominal -37
7.5mm 24.7 1.42 76 12 0.43 0.004
nominal - 25mm
2 19 1.05 69 21 0.53 0.551
nominal -19
9mm 13 1.48 79 14 0.344 0.004
All Coarse Tests, >0.1% S** 19.2 1.75 55 16 0.799 1.002
Minus 25mm, >0.1% S* 18.9 1.46 52 19 0.866 1.2
Minus 25mm, <0.1% S* 17.8 0.71 75 22 0.288 0.002
*Sulfidee Sulfur
The variability of gold recovery with sulfide con

ntent, crush size and sam
mple depth waas reviewed in the
bottle rolll test program. The test results geneerally indicatee a decreasingg gold recoveery with increeasing
sulfide content and witth increasing crush size. The
T results allso suggest thhat there is a minor correelation
between gold
g recoveryy and the dep
pth of the sam
mple with goldd recovery deecreasing witth depth.
Details on
n KCAs test results can be
b found in the
t 2012 Tec hnical Report
rt (Defilippi, eet. al., 2012) aand in
the follow
wing unpublish
hed laboratorry reports:
Jaanuary 2011 KCA Reportt Drill Co

ore Composi te Samples, Column Leaach Test Pro
ogram,
Report of Metallurgical Test Work
Eiight spatial and grade reppresentative core drill ho
oles, composiited to threee samples byy rock
coode (codes 20, 30 and 40) - head d analyses, bottle roll ccyanide leach, cyanide sshake,
aggglomeration testing, and column
c leach test work.
March
M 2011 KCA Report Report of Metallurgical
M T
Test Work, Bo
ottle Roll Tessts 2009 Co
ore
118 bags of brroken core in
ntervals combined to creaate 24 compo
osites - twennty-four bottlle roll
teests, one on each
e composiite.
March
M 2011 KCA
K Report Report of Metallurgical
M T
Test Work, B
Bottle Roll Tests 2010, SHM-
10
0-116 SHM-10-118
Nine
N composiites from 2 core hole samples: SH M-10-116 annd SHM-10-118; 5 composites
deeveloped from
m SHM-10-116; and 4 commposites from
m SHM-10-118 - twenty-five bottle rolll tests
on compositess crushed to 100% minus 90,
9 37.5 and 119mm.
Pagge114

port
May
M 2011 KCA
A Report 116 & 118 Column Tests, R
Report of Meetallurgical Test Work
Core
C intervalss from holess SHM-10-116 and SHM--10-118 - sellected intervvals utilized in the
geeneration of three
t 80 kilogram compossites crushedd to 100% minnus 37.5mm, one for eachh rock
coode tested (220, 30, 40) - size fraction analyses, botttle roll leachh testing, aggglomeration ttesting
annd column leaach testing - multi-elemennt ICP analysiss and whole rock analysis performed o on the
saamples.
Ju
une 2011 KCA
A Report All
A Rock Codee Compositess, Report of M
Metallurgical Test Work
Seeven compossites developeed from the fo
ollowing SHM
M-10 series off drill holes:
Composite 1: 121,, 124, 127; Co
omposite 2: 131, 133, 1377
31, 133; Com posite 4: 1166, 121, 124, 127
Composite 3: 118,, 121, 124, 13
omposite 6: 116, 127, 131, 133
Composite 5: 116,, 118, 121; Co
Composite 7: 116,, 124, 127, 13
31, 133
Seeven 80 kiloggrams compo osite samples crushed to 100% minus 37.5mm and one 280 kilo ogram
coomposite (split of compossite 1) crusheed to 100% m minus 75mm m (P80 of 36mmm) - size fraaction
annalyses, bottlee roll leach teesting, agglom
meration testiing and colum
mn leach testing - detoxificcation
teesting on barren solution from one of the smaller ccolumn tests - ICP and w whole rock analyses
on each compo osite.
Ju
une 2011 KCA
A Report Polymer
P Testing, Report off Metallurgicaal Test Workk
Core
C intervalss from holes SHM-10-131
S and SHM-10--133 - one 2000 kilogram ccomposite crushed
too approximattely 20mm - size fraction n analyses witth assays by size fractionn, bottle roll leach
teesting, agglom
meration testing, column leeach testing aand detoxificaation test wo
ork - seven coolumn
leeach tests on portions of the compositte; each test utilized varying amounts of SNF and Nalco
po olymer as weell as varying flow
f rates.
December
D 201
11 KCA Repo
ort HLC 6, 7, 8, 9 Compposites, Report of Metallurrgical Test W
Work
Nine
N surface bulk sampless received (samples takenn from samee approximatee locations aas the
HLC
H 6, 7, 8 & 9 composites) - five of these
t bulk saamples combined into thrree composites: an
A
A compositee, a B composite and a Global Masteer Compositee - size fractiion analyses bbottle
ro
oll leach testing, agglomeraation testing and
a column/fflood leach teesting.
Jaanuary 2012 KCA

K Report P1 and P2 Zones,
Z Reporrt of Metallurrgical Test W
Work
Ten
T barrels fro om each of the
t P1 and P2 2 Zones - maaterial from eeach zone screened at 1000 and
50 0mm - flood testing on +100mm and -100- +50 mm m samples - siize fraction aanalyses, bottle roll
leeach testing, agglomeratio
a n testing and
d column leacch testing onn -50mm matterial - two rrun of
mine
m (ROM) composites, one o from each h zone, for co
olumn leach testing.
Pagge115

port
May
M 2012 KCA
A Report Bulk ROM Matterial, Reportt of Metallurggical Test Wo
ork
Eiighty drums of bulk ROM M material co
omposited intto eight bulkk ROM samplles - size fraaction
an
nalyses, bottlee roll tests - no
n column teesting due to ttermination o
of ROM testing program
May
M 2012 KCA
A Report Report
R of Mettallurgical Tesst Work
Acid-base
A acco
ounting and humidity cell test
t work on waste drill co
ore intervals and leached o
ore.
13.3 2014
2 Kappes, Casssiday & Associates
A s Test Pro
ogram
Two column leach testts were conducted on com

mposites from
m drill hole co
ore samples rremaining from the
2009 to 2012
2 KCA teest program. KCA prepaared a single composite bbased on insttructions from
m Rio
Alto. Thiis composite was then scrreened and seeparated into
o different sizee fractions. SSplits from eaach of
the size fractions weere then reco
ombined into
o two compposites: coaarse and finee compositess with
coarse defined as the fractions grreater than 25
5mm. The co
oarse compo
osite was geneerated with a ratio
of coarse to fine materrial of 1:1 while the fine co
omposite wass generated w
with a ratio off 1:2.
Column leach tests were

w conducteed on each composite.
c G
Gold and silvver recoveriees in the two
o tests
were the same at 89%
% and 10%, reespectively, after
a 58 days of leaching. Sodium cyannide consumpptions
were virtu
ually identicall in the two tests
t at 0.67 and
a 0.68 kg pper tonne. Bo
oth composittes required a little
over 3 kg of lime per tonne
t for alkaalinity control.
Calculated
d head grades were also very
v similar, 1.10
1 g/t Au annd 7.1 g/t Ag and 1.05 g/t Au and 6.4 A
Ag g/t.
The tailings screen anaalyses of the coarse comp
posite resulteed in a p80 o
of 50.9mm whhile fine compposite
showed a p80 of 39.7m
mm.
13.4 2014
2 and 2015 Tesst Progra
ams
Numerou
us cyanidation
n and permeaability tests were
w conductted under thee direction of Rio Alto in 2014
and Tahoe Resources in 2015. Thee tests were conducted att Rio Altos LLa Arena testiing facilities aand by
SGS Mineerals Services,, Anddes and PUCP (Catholic Universitty, Lima).
13.4.1 Rio
R Alto, Tahoe
T Reso
ources and SGS Colu mn Leach Tests
Personnel at Rio Altos La Area lab
boratory con
nducted 38 co
olumn leach tests on com
mposites geneerated
from bulkk surface samples and drilll core intervaals. Samples for testing w
were composited based onn rock
type and by
b drill hole. A total of eigght core holees were drille d specifically for metallurggical test worrk.
The rock types developed by Tahoee Resources are

a summarizzed in Table 13.4-1.
Pagge116

port
Ta
able 13.4-1 Rock Type Summary
Unit
U Descriptio
on
Q Quatern
nary sandstone & siltstone clastss in clay matrix (>20% fines)
BX
X Breccia with high fines content
c (>20% ffines, clasts & maatrix)
BX
XC Breccia with low fines content
c (<20% fiines, clasts & maatrix)
SD
D Sandsto
one (<5% fines)
SD
DH Fine-graained sandstone (5%-20% fines)
ST
T Siltstonee (100% fines)
FPD Dacite intrusive

SU
ULF Sulfide
The results from Rio Altos

A series of
o column leaach tests are presented in Table 13.4-22 and Table 13.4-3.
ducted a total of five colum
SGS cond mn leach testts; the resultts of which arre summarizeed in Table 13.4-4.
Two testts were cond
ducted on individual com
mposites of siiltstone and sandstone and three tessts on
blends of sandstone an
nd siltstone att ratios of 4:1, 2:1 and 1:1..
As shown
n in Table 13
3.4-2 through
h Table 13.4-4, gold recovveries on oxxide material are generallyy very
good, aveeraging appro
oximately 82%
% including all
a crush sizees and rock types (exceppt sulfides). Gold
recoveries ranged from
m 68% to 89%
%.
The test with

w 68% gold recovery was
w on a fine--grained sand stone surfacee composite. The results o
of the
column leeach tests sho
ow a trend with lower reccoveries in th e tests contaaining this sandstone compposite.
Cyanide soluble
s tests on ground samples
s of th
his same com
mposite also sshow lower ggold recoverries as
compared
d to other ro
ock types. The
T reasoningg for the low
wer recovery is not clear as tests on other
sandstonee compositess resulted in significantly higher reco
overies. It iss possible thhat the compposite
contained
d a small quan
ntity of sulfidees, which havee shown to d ecrease gold recovery.
In the SGS series of teests, the recovvery of gold decreased

d sligghtly with inccreasing siltsttone content.. This
trend wass also presentt in the SGS bottle
b roll tessts as discusssed in Sectionn 13.4.3. Silveer recoveriess in all
the tests were
w generally low, averagging 17%.
Reagent consumptions
c s were low to
t moderate in these serries of column leach testss. Sodium cyyanide
consumpttions varied from
f 0.12 to
o 1.43 kg NaC
CN per tonnne ore and aaveraged 0.788 kg/t, includiing all
results ex
xcept those on
o the sulfide test. Lime additions rangged from 0.7 to 2.7 kg lime per tonne o
ore in
tests wheere no cemen
nt was added. Average lim
me requiremeent in these teests was 1.8 kg/t. Cemennt at 4
to 6 kg/t was
w added to
o several of th
he -25mm tessts. In these tests, the aveerage cementt addition ratte was
4.5 kg/t an
nd the averagge lime added
d was 1.5 kg/t.
Pagge117
Shahuindo Min
ne, Peru
Table 13.4-2 Rio Alto Colum

mn Leach Test Re
esults on Surfacee Samples
Column Crush
h Size, Leach Time Head g/t % Recovery
y NaCN Lime Cement
-*
Sample Descriptio
on k Type
Rock ppm
m CN
No. p100 , mm days A
Au Ag Au Ag kg/t kg/t kg/t
15 Drum, Surface
S PM1 7
76 Sandstone 1
150 60 5.5570 808.0 79.7 3.3 0.48 2.2 0
16 Drum, Surface
S PM1 7
76 Sandstone 1
150 60 5.5570 808.0 79.7 3.3 0.60 2.3 0
17 Drum, Surface
S PM2 7
76 Sandstone 1
150 23 0. 170 7.1 83.3 3.7 0.12 1.1 0
18 Drum, Surface
S PM2 7
76 Sandstone 1
150 23 0. 170 7.1 84.0 3.5 0.17 1.1 0
8 Drum, Surface
S Blend of PM1 & PM22 7
76 Sandstone 5
500 60 2.5550 360.8 83.2 5.2 1.25 1.5 0
1 Truck 1, First Sample RO

OM Sandstone 1
150 60 0. 325 4.7 75.5 4.5 0.20 2.3 0
3 Truck 1, First Sample 1000 Sandstone 1

150 60 0. 311 4.9 76.1 4.6 0.28 2.2 0
14 Truck 1, First Sample 122.5 Sandstone 1

150 30 0. 346 7.2 75.1 8.0 0.14 2.4 0

300 30 0. 346 7.2 78.0 9.5 0.43 2.4 0

500 30 0. 346 7.2 81.7 9.7 0.74 2.4 0
1 Truck 2: 1:2=Sample 514420 : Sam

mple 514416 RO
OM Sandstone, Siltsto
one 1
100 80 1.7765 8.8 76.2 2.9 0.26 1.8 0
2 Truck 2: Sample 514420 RO

OM Sandstone - Mediium Grain 1
100 80 0.4474 2.1 77.8 13.1 0.22 1.8 0
3 Truck 2: Sample 514425 1550 Siltstone & Sandsstone - Fine Grain 1

100 81 0.9967 3.5 84.0 10.77 0.32 1.9 0
4 Truck 2: 1:2=Sample 514420 : Sam

mple 514417 1550 Sandstone - Interrtwinned 1
100 81 0.8861 2.0 70.3 13.44 0.34 2.0 0
9 Truck 2: Sample 514416 7

76 Siltstone - Fine Grain
G 1
100 77 3.4444 10.7 73.9 6.7 0.45 2.7 0

76 Siltstone & Sandsstone -Fine Grain 1
100 77 1. 379 4.0 78.1 14.33 0.37 2.5 0

76 Sandstone - Fine Grain 1
100 83 1.0062 3.3 68.1 14.1 0.54 2.6 0

76 Sandstone - Mediium Grain 1
100 83 0.4472 2.5 80.8 17.33 0.51 2.2 0
*Average con
ncentration of cyanidee (as CN-) in test leaach solutions
Page118
Shahuindo Min
ne, Peru
Ta
able 13.4-3 Rio
o Alto Column Leach
L Test Results on Drill Coree Composites
Column Crush
h Size Leach Time Head g/t % Recovery
y NaCN Lime Cement
-*
on
Sample Descriptio k Type
Rock m CN
ppm
No. p100 mm days A
32 ST1 (Meet hole 001M, drill core inteervals to 132m) 2

25 Siltstone 5
500 60 0. 348 1.7 84.2 4
23.64 0.95 1.3 5.0
21 ST2 (Meet hole 001M, intervals 161m

m to 176m) 2
25 Siltstone 5
500 60 0. 323 2.0 87.1 34.16
6 1.13 1.5 5.0
33 SD+SDH
H (all SD+SDH intervals in met hole 001M) 2
25 Compact & Fine Grained Sandstone 5
500 60 0.4
410 3.3 88.7 25.36
6 0.91 0.9 0.0
34 BX + BX
XC (all BX+BXC intervals in met hole 001M) 2
25 Breccia, High & Low
L Fines Content 5
500 60 0.5
511 2.5 87.4 21.13
3 0.98 1.0 4.0
35 ST (Mett hole 002M, core intervals to 132m) 2

25 Siltstone 5
500 60 0.6
643 1.8 89.0 21.48
8 1.20 1.3 5.0
36 SD (all SD
S intervals in met hold 002
2M) 2
25 Compact Sandsto
one 5
500 60 0.6
623 7.5 85.0 19.73
3 1.08 0.7 0.0
22 BX + BX
XC (all BX+BXC intervals in met hole 002M) 2
L Fines Content 5
500 60 0.9
924 3.6 85.6 11.68
8 1.32 1.9 4.0

25 Siltstone 5
500 60 0.5
533 6.5 87.7 14.18
8 1.43 1.0 5.0

25 Siltstone 5
500 60 0.8
887 6.7 89.5 21.05
5 1.25 2.1 5.0
23 BX + BX
XC (Met hole 004M) 2
L Fines Content 5
500 60 1.0
084 4.4 73.2 27.99
9 0.66 1.6 4.0

25 Siltstone 5
500 60 0.2
224 1.4 85.5 26.65
5 1.06 0.9 5.0
40 ST (Mett hole 005M, intervals from 82m to 150m) 2

25 Siltstone 5
500 60 0.2
273 1.6 89.4 33.77
7 1.15 2.0 5.0
41 SD + SD
DH (all SD+SDH intervals in
n met hole 005M) 2
500 60 0.2
267 4.5 86.6 32.32
2 0.97 1.2 0.0
42 ST (all ST
S intervals in met hole 006
6M) 2
25 Siltstone 5
500 60 0. 331 5.9 85.0 22.39
9 0.95 1.1 5.0
43 SD + SD
n met hole 006M) 2
500 60 0. 365 6.3 83.8 30.67
7 0.89 0.9 0.0
44 ST (all ST
S intervals in met hole 007
7M) 2
25 Siltstone 5
500 60 0.4
484 1.1 88.4 19.62
2 1.15 1.4 5.0
45 SD + SD
n met hole 007M) 2
500 60 0.4
465 8.7 80.7 16.08
8 1.01 0.8 0.0
46 ST (Mett hole 008M, intervals from 0m to 80m) 2

25 Siltstone 5
500 60 0.4
428 6.9 82.2 23.6
6 1.16 1.8 5.0
47 SD + SD
n met hole 008M) 2
500 60 0. 360 4.3 82.5 17.23
3 1.14 1.6 0.0
48 SULFID
DES (008M, intervals from 114m to 160m) 2
25 Sulfides 5
500 60 0.6
695 23.9 19.7 2.527
7 1.72 2.9 5.0
*Average con
Page119
Shahuindo Min
ne, Peru
Ta
able 13.4-4 SGS Column Leach
h Test Results
Column Crush
h Size Leach Time Head g/t % Recovery
y NaCN Lime Cement
-*
on
Sample Descriptio Rock
k Type m CN
ppm
No. p100 mm days A
SGS 1 Core in
ntervals composited from 00
03M 2
25 Silstone 5
500 48 0..48 9.7 80.7 14.7
7 1.24 3.92 6
SGS 2 Core in
ntervals composited from 00
05M 2
25 Sandstone 5
500 48 0..28 4.7 84.7 34.9
9 0.77 2.26 0
SGS 3 4:1 ratio

o of SD:ST, 001M to 008M 2
25 Sandstone-Siltsto
one Blend 5
500 48 0
0.3 5.7 83.3 29.7
7 0.81 1.08 0
SGS 4 2:1 ratio

one Blend 5
500 48 0..41 6.9 83.1 25.0
0 1.06 0.49 4
SGS 5 1:1 ratio

one Blend 5
500 48 0..46 8.3 83.2 21.8
8 1.11 0.22 5
*Average con
Page120

port
13.4.2 Discussion
D on the Results of the
e Rio Alto aand SGS C
Column Leach Tests
The results from the column
c leach tests by SGSS and Rio Alto
o were sorteed and averagged based on crush
size. Thee results from
m the -25mm tests were allso sorted byy rock type annd averaged. These results are
presented
d in Table 13.4-5.
The tests show some variation in gold

g recoveryy with crush size. The avverage gold reecovery from
m tests
conducted
d on coarserr material (p100 of 100mm
m or greater)) averaged 766% while thee gold recoveery on
samples crushed
c to ap
pproximately 76mm averaaged 79%. G
Gold recoveryy in the minnus 25mm co
olumn
leach testts averaged 84%.
8 The minus
m 25mm test
t results aalso indicate similar gold recoveries o
on the
compositees of sandsto
one and siltsttone and sligghtly lower rrecoveries onn breccia com
mposites. So
odium
cyanide co
onsumptions vary based on
o the concentration of cyyanide used iin the columnn tests and d
do not
seem to vary
v significantly due to difffering rock tyypes or on crrush size.
One poteential issue with

w the colum
mn leach testts on the RO
OM and coarsser crushed ssiltstone/sand
dstone
blended composites
c was
w the high fines content in the preggnant leach ssolutions. Seeveral of the tests
reported a pregnant solution fines content of over
o 6% solidds by weight, which is exttremely high. This
high fines migration in a heap can quickly fill up a solution sto
orage pond and cause opeerating probleems in
the adsorrption and pu
umping circuitts. The finess issue needs to be evaluaated further iin the future.. The
amount of
o fines in thee pregnant solution woulld likely be ssignificantly reduced by thhe introductiion of
cement aggglomeration.
Pagge121
Shahuindo Min
ne, Peru
Table
e 13.4-5 SGS and
a Rio Alto Column Leach Test Results by Sizee and Rock Type
e
ze
Avg Crush Siz Avg ppm Avg Leach
L Avg Head Grade
G g/t Avg % Recovery A Reagent Req'd kg/t
Avg
Rocck Type
p100 mm CN-* Time
e days Au Ag Au Ag Na
aCN Lime C
Cement
ROM Mainly sandstonee (surface) 117 7

73 0.85 5 76 7 0. 23 1.94 0.00
150 Sandstone & Silttstone (surface) 100 8

81 0.91 2.7 77 12 0. 33 1.97 0.00
100 Sandstone (surfaace) 150 6

60 0.31 4.9 76 5 0. 28 2.21 0.00
76 Sandstone & Silttstone (surface) 167 6

61 2.27 224 79 8 0. 50 2.02 0.00
25 Sandstone, Siltsttone, Breccia (core) 500 5

58 0.48 4.8 85 24 1. 06 1.37 3.21
12.5 Sandstone (surfaace) 317 3

30 0.35 7.2 78 9 0.444 2.43 0.00
25 Breccia 500 6
60 0.84 3.5 82 20 0. 99 1.49 4.00
25 Sandstone 500 5
58 0.40 5.6 85 25 0. 97 1.22 0.00
25 Siltstone 500 5
59 0.45 4.1 86 23 1. 15 1.64 5.09
*Average con
Page122

port
13.4.3 SGS
S Bottle
e Roll Tests
SGS cond
ducted a series of bottle roll tests on
n splits of th e samples teested in the SGS column leach
program. The bottle roll tests weere conducted
d for 72 houurs on compo
osites crushed to 100% passing
2mm. Th
hese results arre presented in Table 13.4
4-6.
Table
T 13.4-6 Summary
y of SGS 72-h
hour Bottle R
Roll Tests
Crush
h Head g/t % Recovery
Test NaCN NaCN Lim
me
Sample
e Description Size p100
No. g/L Au Ag Au Ag kg/t kg
g/t
mm
1 Siltstone 2 0.94 0.47 9.4 76.7 18.8 1.97 5..56
2 Sandstone 2 0.94 0.28 4.9 84.5 41.9 0.92 1..59
3 Blend 4 Sandsttone to 1 Siltsto

one 2 0.94 0.28 5.5 82.7 38.4 1.38 2..27

one 2 0.94 0.42 6.6 80.6 32.3 1.50 2..31

one 2 0.94 0.48 7.9 79.8 26.2 1.81 3..25
1B Siltstone (Dup
plicate) 2 0.94 0.43 9.5 80.1 17.2 2.00 5..75
Gold reco
overies did no
ot vary greatlly, ranging fro
om 77% to 844%. The siltstone compossite had the lo
owest
gold reco
overy, averaging approxim
mately 78% in
n the two te sts. The reccovery of go
old decreased
d with
increasingg siltstone con
ntent in the series
s of bottle roll tests. This trend iss also shown in the SGS co
olumn
leach testts results prevviously shown
n in Table 13..4-4.
Silver reccoveries weree generally lo

ow, averagingg 29%. Therre is a similaar trend withh decreasing silver
recoveries with increasing siltstone content.
Lime and cyanide conssumptions weere both high

h in all tests, with the testts on the silttstone material the
highest. The
T series off bottle roll test
t results also show lim e and cyanide requiremennts increasingg with
increasingg siltstone con
ntent in the composites.
c These
T trends based on siltsstone contennt are not appparent
in the largger column leeach tests on the coarser ore
o composittes conductedd at La Arenaa by Rio Alto.
The SGS report stated

d that the silltstone samplle had higherr contents off copper, ironn and arsenicc than
the sandsstone compossite which co
ould account for the higheer reagent co
onsumptions.. Gold recovveries
should on
nly minimally affected by the
t level of these
t three eelements in tthe siltstone samples. Cyyanide
soluble co
opper levels are
a low and should not cau
use any issuess with heap pperformance.
The SGS data also sho

ow that the siltstone com
mposite had hhigher levels of sulfur. It is unknown if the
sulfur is due
d to sulfatees (as jarositte), elemental sulfur or suulfides. KCA
As 2009 to 22012 test pro
ogram
showed a decrease in gold
g recoveryy with increassing sulfide co
ontent.
Pagge123

port
Head grad
de assays for copper, iron,, arsenic and sulfur in the SGS siltstonee and sandsto
one compositees are
Table 13.4-7 Copperr, Iron, Arsen

nic and Sulfurr Levels in th
he SGS Composites
Cu Arsenic
Rock Type % Iron % Sulfur
ppm ppm
Siltstone 10.77 1.16 80.5 1909

Sandstone 3.36 0.27 15.9 512
13.4.4 Compacte
C d Permeab
bility Testss
A series of
o compacted
d permeabilitty tests weree conducted bby Anddes annd PUCP. A
Anddes resultts are
more releevant to determining perco
olation propeerties of the o
ore at variouss simulated heap heights d
due to
the type and
a size of teest. The testts by PUCP were
w on smalll samples and are more o
oriented to ttesting
soil samplles. PUCPs results
r are no
ot presented here as they were not useed in the evaluations.
Anddes tests
t were co
onducted in an approximate 300mm diameter cyliinder on leacched minus 225mm
residues from
f the series of column
n leach tests conducted
c att La Arena. Initial sample heights weree kept
constant at
a about 300mm. The tests were con
nducted as rrigid tests, w
with a solid cyylinder wall. KCA
conducts similar tests, although preeferably with a higher sam
mple test heighht. KCA hass used resultss from
these typees of tests su
uccessfully in estimating ceement requireements at varrying heap heeights in numerous
heap leach
h projects. Anddes
A resultts are presentted in Table 13.4-8.
The perco
olation rate is dependent on the heap height simul ated and on the content of fines present in
the samples tested. Figure
F 13.4-1 presents th
he variation i n percolationn rates with fines contennt and
simulated heap heightss while Figurre 13.4-2 presents the chaange in ratess with rock ttype and simuulated
heap heigghts. The ressults indicate that materiaal with appro
oximately 20%
% fines ( minus 75 micronns) or
greater co
ould have permeability isssues, or this material coulld cause channnelling within the heap d
due to
zones witth higher finess content.
The seriees of compaccted permeab

bility tests weere conducteed on minus 25mm leachhed residues. The
results can be considered to be a worst
w o not necessaarily lead to tthe conclusion that
case sceenario and do
oximate minuss 100mm coaarse crushed ore
the appro o will have permeabilityy issues. The results do ind
dicate
that sandstones will have not havee any permeaability issues as all tests o
on this rock type passed. The
breccia material
m had mixed resultts with higheer fines conteent samples not passing. All the silttstone
samples failed
f the tessts, even at cement additions of up to 5 kg/t. Additional teesting is required,
including testing
t at a co
oarser crush size, blendingg of the rock types and varying the cem
ment levels.
Pagge124
Shahuindo Min
ne, Peru
Table
e 13.4-8 Comp
pacted Permeability Test Resultss
Classifiication (SUCS) m/s
Permeability (Rigid) cm
Drill n
Column Cement
Rock Type Description Liquid Liimit 1 kPa 300 kPa Pa
800 kP 2000 kPa
Hole Test No
o. Gravel (%) Sand (%
%) Fines (%) (kg/t)
(%) <6m Heap Ht 16
6m Heap Ht 45m Hea
ap Ht 110m Heap Ht
001M C-21 ST2 Siltstone (100% fines) 22.7 55.6 21.8 20 5.00E-02 0 0 0 5.0
002M C-22 BX+BXC Breccia, High
H & Low Fines Content 48.8 34.3 16.9 18 2.10E+00 1.00E+00 5.40E-01 2.50E-01 4.0
H & Low Fines Content 17.3 30.4 52.4 26 1.40E+00 0 0 0 4.0
001M C-32 ST1 Siltstone (100% fines) 19.2 14 66.8 28 2.70E-01 0 0 0 5.0
001M C-33 SD+SDH Compact & Fine Grained Sandstone 61.1 20.1 18.7 22 4.70E-01 1.90E-01 5.80E-02 1.40E-03 0.0
H & Low Fines Content 27.8 25.9 46.4 19 5.80E-01 0 0 0 4.0
002M C-35 ST Siltstone (100% fines) 54 22.4 23.6 23 4.10E-01 2.80E-02 1.20E-02 2.90E-03 5.0
002M C-36 SD Sandstonee 64.8 22.3 12.9 25 5.70E-01 3.30E-01 1.90E-01 8.20E-02 0.0
003M C-37 ST Siltstone (100% fines) 34 26.1 39.9 23 5.20E-02 4.90E-04 4.20E-06 0 5.0
004M C-38 ST Siltstone (100% fines) 34 33.3 32.8 28 1.10E-01 0 0 0 5.0
005M C-39 ST Siltstone (100% fines) 38.9 28.2 32.9 22 1.50E-01 3.50E-04 0 0 5.0
005M C-40 ST Siltstone (100% fines) 46.1 25.5 28.5 24 3.90E-01 2.70E-02 5.60E-03 1.10E-03 5.0
005M C-41 SD+SDH Compact & Fine Grained Sandstone 66.4 22.5 11.1 17 3.10E+00 1.80E+00 8.90E-01 3.20E-01 0.0
006M C-42 ST Siltstone (100% fines) 35.5 13.7 50.8 24 3.30E-02 0 0 0 5.0
006M C-43 SD+SDH Compact & Fine Grained Sandstone 73.3 17.1 9.6 18 1.20E-01 5.60E-01 4.70E-01 3.50E-01 0.0
007M C-45 SD+SDH Compact & Fine Grained Sandstone 68 21.4 10.6 18 3.10E+00 2.60E+00 +00
1.80E+ 6.40E-01 0.0
008M C-47 SD+SDH Compact & Fine Grained Sandstone 66.9 26.9 6.2 20 1.80E+00 1.70E+00 +00
1.20E+ 5.50E-01 0.0
008M C-48 SULFIDES Sulfides 50.6 26.9 22.4 32 2.80E-02 8.40E-03 5.60E-06 0 5.0
Page125

port
Figure 13.4-1 Permeability

y Rate and Fiines Contentt at Various S
Simulated Heap Heights
Figure 13.4-2 Permeabiliity Rate and Rock Type aat Various Sim
mulated Hea
ap Heights
Pagge126

port
13.5 Estimated
E d Field Re
ecoveriess, Leach T
Times and Reagen
nt
Requirem
R ments
Column leeach tests on

n ROM and coarse crusheed column leaach tests by K
KCA, Rio Alto and Tahoe were
used in esstimating field
d recoveries, leach times and reagent requirements. These leaach test resultts are
13.5.1 ROM
R Field
d Design Pa
arameters
The colum
mn leach tests conducted on ROM com
mposites or o
on compositees coarse crusshed to 100m
mm or
greater were
w used in the
t estimatio
on of ROM fieeld data. Daata supplied bby Tahoe indicate a prelim
minary
p80 ROM
M size of appro
oximately 100mm to 150m
mm. Since thhere are insuffficient test reesults on individual
rock typees, the resultss from these series of tessts were averraged to estim
mate the field
d recoveries, leach
times and reagent requ
uirements.
For the series

s of colu
umn tests labelled as ROM
M or at sizess of 100mm or greater (items one through
eight as presented
p in Table 13.5-2
2), the averagge gold recovvery is 76%. Silver recovveries are low
w and
average 12%. The aveerage sodium cyanide con
nsumption andd lime requirrement are 00.28 kg/t ore and 2
kg/t ore, respectively.
r
Based on field experience, KCA red

duces the column test reccoveries by 2--3% for gold aand 2-5% for silver
for the fieeld recoveriess. Factors ap
pplied to laboratory colum
mn leach test rresults to esttimate field so
odium
cyanide consumptions
c s on clean, oxide ores vary by coluumn size (w
weight of sam
mple tested), test
procedurees, and cyanid
de strength in
n the barren leach solutio
ons. Typicallyy, KCA uses 225% to 33% o
of the
column cyyanide consumption in sm
maller columns (generally 775mm to 1500mm in diameeter and up tto 2m
in height) and up to 70% to 80% on
o tests conducted on largger samples ((500mm+ in diameter by 6m in
height). Cyanide streength in the leach
l solution
ns are generrally in the 5000 to 1000 pppm NaCN rrange.
Based on discussions with
w Tahoe personnel
p and
d KCAs expeerience, a facctor of appro
oximately 70%
% was
used for ROM
R ore as most of the tests
t were co
onducted in laarger columnns. Field limee requirements are
generally close to the laboratory
l test results.
KCA typiccally estimatees the field leaach cycle durration from co

olumn leach ttest data. Thhe method inccludes
studying the
t shape of the
t recovery versus solution to solids ratio curve (ttonnes of solution per tonnne of
ore) to determine where it starts to bend. Th
he solution tto solids ratio
o at the bennd is convertted to
field time using the heeaps solution
n application rate, stackedd ore densityy and lift heigght. The reccovery
me curve is th
versus tim hen studied to
o estimate the days betweeen the bend and when leaaching is com
mplete.
The days are summed to determinee a total leach
h time.
Pagge127

port
Several off the ROM co

olumn tests co
onducted at La
L Arena werre evaluated ffor the abovee information. The
bend occcurs in the 0.3 to 0.5 to
onnes of solu
ution per tonnne of ore raange. Additio
onal leach tim
me to
reach thee flat part of the curve geenerally varies from 40 to
o 60 days. T
Therefore, at a lift height of 12
meters an
nd a solution
n application rate of 10 L/hr/m
L 2, a tottal leach time
e of 80 days is recommeended.
Increasingg the lift heigght to 16 meeters, the tottal leach timee recommendded increasess to 90 days. On
multiple lift heaps, add
ditional leach time may be required to wash out preegnant leach solutions in lower
lifts duringg upper lift leeaching.
Thereforee, for oxide ROM

R ore and migration issuees, KCA estimates
d assuming no permeabilitty or fines m
the param
meters shown in Table 13.5
5-1 for this sttudy.
Tab
ble 13.5-1 KCA Oxide Ore Parame
eters - No Pe
ermeability o
or Fines Migrration Issues
Parrameter KCA Reccommendatio

on
Gold Reco
overy 73%
Silver Recovery 7%
NaCN Co
onsumption 0.2 kg/t
Lime Requ
uirement 2.0 kg/t
Leach Tim
me 80 days (miniimum, 12 meterr lifts)
Pagge128
Shahuindo Min
ne, Peru
Table
T 13.5-2 Co
olumn Test Resu
ults Used in Estim
mating Field Deesign Criteria
Item S
Size Head ead Extraction Extraction
He NaCN Lime Cement Days
Test ID
D / Col No. Description
No. m
mm Au g/t Ag
g g/t Au % A %
Ag Cons kg/t kg/t kg/t L
Leached
1 KCA 60
0909 Global Composite A & B 102
2 (p80) 0.94 3.1 85 22 0.52 0 5.95 71
2 KCA 60
0978 P2, Zon
nal Moyan 240
0 (p80) 0.095 0. 67 62 27 0.10 0 5.74 56
3 C-1 Truck 1,
1 Sandstone R
ROM 0.325 4.7 75 4.5 0.20 2.3 0 60
4 C-3 Truck 1,
1 Sandstone 100
0 (p100) 0.311 4.9 76 4.6 0.28 2.2 0 60
5 C-1 Truck 2:
2 1:2 Sample 514420 : Sample 514416 R
ROM 1.76 8.8 76 2.9 0.26 1.8 0 80
6 C-2 Truck 2:
2 Sample 514420 R
ROM 0.474 2.1 78 13 0.22 1.8 0 80
7 C-3 Truck 2:
2 Sample 514425 150
0 (p100) 0.967 3.5 84 11 0.32 1.9 0 81
8 C-4 Truck 2:
2 1:2 Sample 514420 : Sample 514417 150
0 (p100) 0.861 2.0 70 13 0.34 2.0 0 81
9 0991
KCA 60 P1, Zon
na Este, Huangamarca 45
5 (p80) 0.196 0.4
40 83 25 0.22 0 5.97 66
10 KCA 61648 KCA Old

O Core, 1:1 Coarse:Fines Mix 50.9 (p80) 1.095 7.1 89 10 0.67 3.06 0 58
11 KCA 61651 KCA Old

O Core, 1:2 Coarse:Fines Mix 39.7 (p80) 1.054 6.4 89 10 0.68 3.02 0 58
12 C-15 Surfacee, PM1, Sandstone 75 (p100) 5.57 80
08 80 3.3 0.48 2.2 0 60
13 C-16 Surfacee, PM1, Sandstone 75 (p100) 5.57 80

08 80 3.3 0.60 2.3 0 60
14 C-17 Surfacee, PM2, Sandstone 75 (p100) 0.17 7.1 83 3.7 0.12 1.1 0 23
15 C-18 Surfacee, PM2, Sandstone 75 (p100) 0.17 7.1 84 3.5 0.17 1.1 0 23
16 C-8 Surfacee, PM1+PM2 Blend 75 (p100) 2.55 36

61 83 5.2 1.25 1.5 0 60
17 C-9 Truck 2:
2 Sample 514416 76 (p100) 3.44 11 74 6.7 0.45 2.7 0 77
18 C-11 Truck 2:
2 Sample 514425 76 (p100) 1.38 4.0 78 14 0.37 2.5 0 77
19 C-12 Truck 2:
2 Sample 514417 76 (p100) 1.06 3.3 68 14 0.54 2.6 0 83
20 C-13 Truck 2:
2 Sample 514420 76 (p100) 0.472 2.5 81 17 0.51 2.2 0 83
Averages Items 1 through 8 0.72 3.7 76 12 0.28 2.00 71

Averages Items 9 through 20 1.89 16
69 81 10 0.51 2.02 61
Page129

port
13.5.2 Primary
P Crushed Ore
e Field Dessign Param
meters
The column leach tessts conducteed on compo
osites crusheed to nominaally -76mm were used in the
n of the co
estimation oarse crusheed ore field design paraameters. D
Data supplied
d by the crrusher
manufactu
urer indicate a preliminaryy p80 crush size
s ranging frrom approxim
mately 60mm
m to 85mm. T
There
are insuffiicient test ressults at the primary
p crushed ore size tto estimate field operatingg data by individual
rock typees.
For the series of column tests labeelled as 76mm

m down to 445mm (items 12 through 220 as presentted in
Table 13.5-2), the resu
ults from sim
milar composittes were com
mbined to preevent one ro
ock type or saample
location from
f biasing the averages. There arre several po
otential combbinations, all of which leead to
average gold recoveriees in the 81%
% to 83% rangge. For this sstudy, KCA uused the results shown in Table
13.5-4 to estimate field
d recoveries and
a reagent requirements
r .
Estimates for field gold

d and silver recoveries
r were
w made baased on the ddeductions discussed in Seection
13.4.1. However,
H the low silver reecovery from
m the test on the very highh silver gradee sample (Item
m 16)
was not used.
u This leaads to an averrage non-deducted silver rrecovery of 16%.
Sodium cyyanide consum

mption averaged 0.65 kg/tt. Based on ddiscussions wiith Tahoe perrsonnel and K
KCAs
experiencce, an averagee sodium cyaanide consum
mption rate o
of 0.3 kg perr tonne of orre was used. This
equates to
o a factor of approximatel
a y 45% of the average conssumption.
Cement and
a lime req
quirements are difficult to
o estimate bbased on thee lack of datta from testss that
simulate the
t planned processing
p flow
w sheet on coarse crusheed material. T
The current fflow sheet inccludes
primary crushing, then
n screening att 76mm. Thee minus 76mm
m material is aagglomerated
d with 6 kg ceement
per tonnee of minus 76
6mm ore, theen recombineed with the pplus material prior to connveyor stacking on
the heap. Lime is also
o added at a rate
r of 1 kg per
p tonne of ore (whole o
ore). The cem
ment additionn rate
appears reasonable
r baased on KCA
As and Andd
des compacteed permeabillity test resuults. Howeveer, no
permeabillity tests on screened
s minus 76mm com
mposites havee been conduucted.
Field leacch time on coarse crusheed ore was estimated

e in a similar maanner as the ROM leach time.
Several of the minus 76mm tests were evaluated and leac h times deteermined. Thhere are significant
variationss in the shapees of the currves, especially when com paring KCAss and La Areenas tests. K
KCAs
tests indicate a bend
d at about 0.4
0 tonne so onne ore whhile the bennd in some of La
olution per to
Arenas teests are in thee 0.5 to 1 ton
nne solution per
p tonne ore range. A co
ouple of La A
Arenas test hhad no
bend in the leach curves. Additio
onal leach tim
me determinedd from the leeach time currves varies fro
om 30
to 60 dayys. For this study,
s a 0.4 to
onne solution
n per tonne o
ore ratio wass used with aanother 40 daays of
additional leach time. Therefore, at a lift heigght of 12 meeters and a ssolution appllication rate of 10
Pagge130

port
l/hr/m2, a total leach time of 70 dayys is recomm

mended on co
oarse crushedd ore. Increaasing the lift hheight
to 16 metters, the totaal leach time recommende
r d increases to
o 80 days. O
On multiple lifft heaps; addiitional
leach timee may be requ
uired to remo
ove pregnant leach solutio
ons in lower lifts during uppper lift leaching.
Thereforee, for oxide ore

o crushed to
t a p80 in the 60mm to 885mm range, KCA estimattes the param
meters
shown in Table 13.5-3 for this pre-ffeasibility stud
dy.
Tablle 13.5-3 KCA

K Oxide Ore
O Recomm
mendation - C
Crushed to p8
80 (60mm - 8
85mm range))
Parame
eter KCA Reccommendatio n
Gold Recoverry 80%
Silver Recoverry 12%

NaCN Consumption 00.3 kg/t
Lime Requirem
ment 1.0 kg//t (whole ore)
Cement Requirement 6.0 kg/t (-76m

mm screened matterial)
Leach Time 70 days (mini mum, 12 meter lifts)
Pagge131
Shahuindo Min
ne, Peru
Table 13
3.5-4 Test Ressults Used to De
etermine Field Pa
arameters on Co
oarse Crushed O
Ore
Head Grade Extraction Reagent Consumption
Test
T ID / Avg Size Days
Item Description NaCN Lime Cement Leached
Co
olumn No. (mm) Au g/t Ag g/t Au % Agg %
kg/t kg/t kg/t
9 KCA
A 61648 PI, Zona
Z Este, Huangamarca 45 (p80) 0.196 0.4 83 255 0.22 0 5.97 66
KCAA Old Core
10 & 11 KCA
A 61648/651 45 (p80) 1.07 6.7 89 100 0.68 3.04 0 58
1:1 & 1:2 Coarse:Fines
16 C-8 Surfaace, PM1+PM2 Blend
d 75 (p100) 2.55 361 83 5.22 1.25 1.5 0 60
17 - 20 C-9,,-11,-12,-13 Trucck 2 Samples 76 (p100) 1.59 5.14 75 133 0.47 2.5 0 80
Averages 1.35 93 83 133 0.65 1.8 - 66
Page132

port
13.6 Recomme
R endations and Con
nclusionss
The resullts of the lab

boratory testting program indicate exccellent gold rrecoveries at both run-off-mine
(ROM) an
nd moderate crush sizes with
w low to moderate reeagent requireements implyying amenabillity to
heap leacching. Silverr recoveries are generally low. Mai ntaining heapp permeabilitty and minim
mizing
channelingg at higher heap
h heights constitutes a risk to thhe project ass additional aagglomerationn and
compacteed permeabilitty testing is reequired.
Tahoe reecently starteed leaching ROM

R ore on a newly co nstructed heeap leach facility at Shahuuindo.
Leach pad
d area will bee available to
o conduct field pilot-scale heap leach tests. This w
would be ideeal for
conductin
ng additional tests on near-surface RO
OM ore compposites. The following is recommendeed for
these testts:
Tests
T on sandstone/siltston
ne/breccia bleends similar tto the mine plan at gradees similar to those
pllanned for RO
OM leaching.
Tests
T on indiviidual rock typ
pes of sandsto
one and brecccia with low ffines contentt.
The available data ind

dicate that siltstones
s and
d breccia witth high finess content wiill most likelyy not
percolate in a ROM heap
h leach. However, if these two ro
ock types pass the compaacted permeability
tests with
h no cement required at the recomm
mended coarsse crush size,, then consid
deration shouuld be
given to conducting
c a pilot-scale
p tesst on the ROM pad on a ccomposite of tthese two ro
ock types.
Splits from each com

mposite tested
d in the pilo
ot-scale testss should be taken and column leach tests
d at a coarse crush size off approximateely 80% passinng 76mm.
conducted
Column leach tests on

n both surfacce and large diameter
d corre samples shhould be conducted on eaach of
the rock types (exceept sulfides) at a p80 crrush size of 76mm. Thhe samples should be sppatially
representtative of the orebody.
o Larrge diameter core holes shhould twin thhe latest metaallurgical drill holes
so the ressults from the series of co
olumn leach tests
t on the minus 25mm
m tests can bee compared tto the
76mm tesst results. Th
he gold gradees of the indivvidual rock tyypes to be teested should bbe similar to those
estimated
d in the mine plan.
Assays fo
or sulfide sulffur, iron, arseenic, mercuryy and copperr should be conducted o
on each compposite
tested. Mercury
M in leaach solutionss and adsorbeed onto carbo
on should bee followed in the next serries of
tests. Meercury levels in past tests have been lo
ow but still prresent in suffiicient quantitties that a rettort is
required to
t control meercury emissiions.
Compacteed permeability tests on each rock tyype from the large core ddrilling prograam on composites
crushed to
t 76mm sho
ould be conducted. A few
w tests on bblended compposites contaaining the diffferent
Pagge133

port
rock typees in a similar ratio as is planned in crusshed ore pro

oduction shouuld also be co
onducted. Teests at
cement leevels of 0, 3 and 6 kg/t att varying simulated heap heights up to
o the maximuum planned hheight
above thee liner should
d be completted. If any saamples fail, thhen additionaal compositess should be ttested
with increeased levels of
o cement unttil passing perrcolation ratees are achieveed at all simulated heights.
The potential fines migration issuee found in seeveral of the non-agglomeerated La Arrena column leach
tests needs to be evaaluated furtheer. The opeeration of thee ROM leachh pad and thhe pilot-scale tests
should provide sufficient data to determine if fines migration will be an issue or not.
The addittion of a seccondary crussher should be studied aas the data indicate a reecovery diffeerence
between a 76mm and 25mm crush size of abou
ut 4 to 5 perccentage pointts. A trade-o
off study shouuld be
d to determin
conducted ne if the additional recoveery justifies thhe increased capital and operating costts of a
secondaryy crushing cirrcuit.
Pagge134

port
14.0 MINERA
M AL RESOURCES ESTIMA
ATE
14.1 Introduct
I tion
Mineral reesource estim

mation describ
bed in this Teechnical Repo
ort for the Shhahuindo Projject adheres tto the
guideliness of Canadian National Instrument 43-1
101. The minneral resourcces described in this sectio
on are
based on
n all drilling completed as
a of 15 Ap
pril 2015. A major infill drill progrram (24,522m
m) of
predomin
nantly RC drilling on 25m
m x 25m spaccing was com
mpleted in 20015 with the intent to co
onvert
Indicated Resources to
o Measured Resources within
w the majjority of the oxide resource predominnantly
inside a $1,400 open pit
p whittle opttimization sheell.
undary domain
Hard-bou ns based on lithologic contacts were ussed for gradee estimation w
within the intrusive
and colluvvium lithologies. The grade of mineraalization withiin all other lithologies waas estimated w
within
nominal 0.1
0 g/t Au bu
ulk style interrpretations (i..e., grade dom
main shells), completed inn section and
d plan
view. Th
hese interprettations are very
v similar to those com
mpleted in 20012; howeverr, the higher--grade
domains that
t were intterpreted in 2012 based on
o a predom
minantly 50m x 50m drill spacing have been
removed in this resource as the recent infill drilling on 225m x 25m spacing doess not supporrt the
continuityy previously suggested.
s The influence of higher graades in the m
model was resstricted by thhe use
of multiple-pass estimaation routiness using decreaased estimatio
on ranges, further discussed in Section 14.7.
Block model cell sizes and grade intterpolation methodologies

m s are both sim
milar to param
meters used in the
2012 estimate. The parameters
p ch
hosen were done
d so in ann attempt to
o reduce any potential loccalized
smearing of gold or silver grades, particularly
p ass the higher ggrade domain s from the 20012 estimate were
removed as hard consttraints for graade estimatio
on in this updaate.
14.2 Database
D e
The drill data includess all historical drilling and the infill drill ing data com
mpleted in April 2015. The drill
hole inforrmation includ
des collar, do
ownhole survvey, assay, lithhology and oxxidation dataa. The cut-offf date
for the daatabase was 15 April 2015..
All historrical data haas been transformed fro

om PSAD 556 datum to
o WGS 84 datum usingg the
transform
mation noted below in Table 14.2-1. Drill
D hole co
ollars laid outt in 2014 and
d 2015 were done
relative to
o the WGS 84 datum.
Table 14.2-1 Grid

d Transforma
ation Applied
d to Collar D
Data in Datab
base
EASTING
G WGS 84 = EASSTING PSAD56 - 2600.9878149 m
NORTHIING WGS 84 = NORTHING PSAD
D56 - 3688.5484922 m
Pagge135

port
The drill hole

h databasee used for thiis resource estimate contaains 1,039 ho
oles for 164,0015 meters. T
There
are 105 drill holes thatt were not ussed in the esttimate as thesse holes weree either cond
demnation holes or
on holes drilleed well outsid
exploratio de the area of
o the reportaable resource.
The majo
ority of the drrilling is on either a nomin
nal 50m x 500m grid or waas infill RC drilled to a no
ominal
25m x 25m grid in 2014 and 2015 (Figure 14.2-1), predominnantly within tthe upper po
ortion of the oxide
domain. Gaps in the oxide resourrce still exist on both nom
minal grids; thhese gaps aree caused eithher by
hy, or they arre areas deep
topograph per in the oxid
de portion off the deposit that were no
ot targeted fo
or infill
drilling at this stage in the project. The sulfide mineralization
m n is drilled more sporadically than the oxide
domain, as ondary importtance to the project in thi s point in tim
a it is of seco me.
Assays beelow detection were set att 50% of the detection

d lim it.
The topographic surface bounding the upper eleevations of thhe model wass formed from the 2m co
ontour
surface geenerated from
m the 2009 Horizon aerial survey.
Fig
gure 14.2-1 Plan Projec
ction Displayiing Zones of Infill Drilling
g at 25m x 25
5m Spacing
Pagge136

port
14.3 Geologica
G al Modeling
14.3.1 Lithologic
L Domains
The intrusive and colluvium litholo
ogic domains were updateed for this reesource and a breccia litho
ologic
domain was
w added to the
t model baased on new data
d and interrpretation. T
The intrusive, previously bbulked
up on 8m
m plan interprretations, wass refined by wireframing
w tthe unit in Leeapfrog and Maptek Vulccan.
The sedim
ments were relogged
r on 100m centerrs (diamond ccore only) inn an attempt to constructt bulk
mining do
omains of sandstone, siltsttone and brecccia. This waas ultimately unsuccessful due to the nnature
of the geo
ology and thee wide spaced
d section lines. This workk is ongoing o
on a much finner scale (50m
m and
25m sections) and will be incorporaated in futuree resource uppdates.
The addittional data fro

om the 25m x 25m infill RC
C drilling has increased thee confidence of the volum
me and
grade estiimate of the colluvium.
c Th
he intrusive was
w interpreteed on 8m plaans in the 2012 resource, sso the
creation of
o a valid wirreframe in this update is a good advannce for more reliable locaal estimates o
on the
boundariees of the intru
usive and the sediments.
The reloggging program

m on 100m centers was completed
c in an effort to try to definee larger (mineeable)
sandstonee and siltsto
one-dominantt rock packaages for usee as geometaallurgical dom
mains. Thiss was
ultimatelyy unsuccessfu
ul, due to co
onflicts with data betweeen neighborinng drill holes on sectionn, and
between data on the intervening 50m
5 and 25m
m cross sectio
ons. The inteerim solution,, for this resource
update, was
w to interpo
olate sandstone, siltstone, and mixed ssandstone andd siltstone litthologies by m
means
of a spherrical (50m elliipse) nearest neighbor estimate.
The rationalization of multiple typees of logged breccia

b from historical co
ore (on 100m
m centers) into
o one
ode was completed. The interpretation was bulkedd up into 8m pplans and thiss was used to
breccia co o hard
code the resource mo
odel (Figure 14.3-1). Thee interpretatio
ons on 100m
m centers sho
owed moderaate to
good visual correlation
n with the secctions on 50m
m and 25m ceenters.
Pagge137

port
3000m RL 807,400
0E 807,600E
2800m RL
Figure 14
4.3-1 Lithologic Domain
ns Section E400
14.3.2 Structural
S Domains
Two prim
mary structuraal domains were
w used in the resourcee model, withh the division between thee two
domains being the Ch
holoque Faullt (Figure 14
4.3-2). Tahoe has identifieed a distinctt difference in the
consistenccy of minerallization on eitther side of the
t Choloquee Fault; wherre south of thhe Choloque Fault,
the minerralization is geenerally conssistent in thickness and atttitude and no
orth of the C
Choloque Faullt, the
mineralizaation is less consistent
c in thickness an
nd attitude annd appears to be much m
more disruptted by
northeastt and northerly trending sttructures.
Within th
he primary sttructural dom
mains, 23 sub
b-domains havve been interrpreted and modeled on cross
section in
n the southern area and six sub-domain
ns modelled iin the northeern area that are much broader
than thosse in the soutthern area off the deposit. The sub-do
omains are reeflective of lo
ocal changes iin the
strike and
d dip of the mineralization
m due to the in
ntense foldingg of the host sstrata.
Pagge138

port
805000E
806000E
808000E
807000E
Northern D
Domains
9158000
0N
915700
00N Southern
n Domains
Figure 14.3
3-2 Plan Prrojection of S
Structural Do
omains
14.3.3 Oxidation
O Domains
An oxidattion model of
o the depositt spatially deffines two zo nes: an oxidee-dominant zzone and a suulfide-
dominant zone. The oxidation zo
ones are baseed on cross-ssectional inteerpretations o
of the presennce of
oxide and
d sulfide mineerals from diaamond core logging. The mixed oxidee/sulfide transsitional zone in the
central co
ore of the deposit is very thin and irregular; prefereence was giveen to code trransitional maaterial
as sulfide,, particularly when review
wing the total sulfur assays . The oxide//sulfide surfacce was wirefrramed
in Leapfro
og and adju
usted in Map
ptek Vulcan
as necessarry to removee any inconsiistencies baseed on
spurious data
d from ind
dividual drill holes.
14.4 Grade
G Esttimation Domainss
14.4.1 Gold
G Estim
mation Dom
mains
Gold estim
mation domaains were inteerpreted usin
ng a 0.1 g/t A
Au cut-off bouundary. In m
many areas, thhe 0.1
g/t Au cut-off is a cleaar natural breeak when revviewing the d rill data statistically and o
on cross secttion in
hern portion of the depossit. There is no clear stattistical cut-offff for the norrthern domains, so
the south
the same lower grade cut-off as thee southern do
omain was useed for consisttency.
Pagge139

port
The sub-d
domains mod
delled to refllect the diffeering geometrric orientatio
ons of the m
mineralization were
constructted on cross section
s in thee southern po
ortion of the deposit and on level plans for the norrthern
portion of
o the deposit. The sub-do
omain boundaaries in the so
outhern porttion were snaapped to drill holes
as the 0.1
0 g/t Au grade
g boundaary in this area is reassonably sharpp (Figure 144.4-1). Thee plan
interpretaations of the northern dom
mains were not snapped to
o drill holes aas the grade bboundaries arre not
always disstinct (Figure 14.4-2).
The 0.1 g/t

g Au domaain boundary transgressess all sedimen tary rock types, with higgher grades eeither
located along contacts with the intrrusive bodies,, trending in a NNW direction, or occasionally dispplaying
a north to
o northeast alignment
a ng second orrder structurees. Gold grades encounteered in the breccia
alon
bodies aree highly variaable, ranging from
f <0.05 g//t to +10 g/t. The intrusivve appears m
mineralized in some
areas of the southern domains and gold grades have
h been esttimated for tthe intrusive iin this area. In the
northern domains, thee intrusive hass very little mineralization
m and a defaultt grade below
w the cut-off grade
has been applied to thee intrusive in this area.
Results frrom infill RC drill holes, completed on

n 25m x 25m spacing in 2015 do not ssupport the uuse of
higher graade gold cut--off domains as the additio
onal drill dataa shows thatt there is mo
ore discontinuuity at
short to medium
m ranges for higher grade minerralization thann previously m
modeled. It iis thought thaat the
effect of the
t north to northeast treending structtures (and po
ossibly other structures) tthat cut acrosss the
main nortth-northwestt trend of miineralization are
a the causee of this lackk of continuitty. Infill drilling is
ongoing to
o improve co
onfidence in the structural model in thiss area.
The 0.1 g/t Au domains are con

nsidered suffficient to co nstrain the ggrade interpolation, given the
reasonably dense drilliing completed
d in 2015. Within
W the 0.11 g/t Au dom
main, the interrpolation of hhigher
grades weere restricted
d during the estimation
e pro
ocess (discusssed further inn Section 14.88).
Pagge140
Shahuindo Min
ne, Peru
808000
0E 808200E
3000m RL
2900m RL
2800m RL
2700m RL
Figure 14.4-1 Au
A Interpretation
n - Southern Dom
mains (Cross Secction E1200)
Page141
Shahuindo Min
ne, Peru
807
7400E 807600E
E
3000m RL
2900m RL
2800m RL
Figure 14.4-2 Au
A Interpretation
n - Northern Do
omains (Cross Seection E400)
Page142
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

14.4.2 Silver
S Estim
mation Dom
mains
There is a close correelation betweeen the distrribution of go
old and silveer grades in tthe Shahuind
do
deposit; ass such, the go
old estimation
n domains weere used to co
onstrain the ssilver estimatte. The 0.1 gg/t
Au domain
ns were vieweed as sufficien
nt to constraiin the silver ggrade interpolation. Theree are very rarre
occurrencees where som
me isolated silver
s grades fall outside tthe 0.1 g/t A
Au domains, bbut this is no
ot
considered
d material to the
t estimate.
14.4.3 Other
O Estim
mation Dom
mains
A suite off other mino
or elements were also estimated
e intto the modeel to assist iin waste rocck
characterizzation studiess. These elem
ments have litttle to no eco
onomic impacct on the oxid
de resource o
or
reserve esstimate. Th
he minor elements estim
mated includde sulfur, co
opper, lead, zinc, arsenic,
molybdenu
um, calcium, total
t iron, sod
dium and man
nganese.
A review of each eleement was undertaken

u n three dim ensions and statistically to determinne
in
appropriate domains fo
or estimation. A variety of
o constraints were appliedd where apprropriate, baseed
binations of rock
upon comb r type, ox
xidation statee and gold miineralization domains. A more detaileed
analysis of the minor eleements is preesented in Secction 14.5 of this report.
14.4.4 Sample
S Sele
ection and Compositting
Data from both RC and
d diamond core were used
d in this estim
mate.
Data in thee northern su

ub-domains were
w selected
d using a plann projection o
of +/- 4m eleevation arounnd
the 8m plan interpretaations. Dataa within the southern do
omains were selected witthin the crosss
sectional wireframes.
w Samples werre composited based on ccombinationss of rock typpe, mineralizeed
domain and oxidation state,
s depending upon the element conncerned. This is explained in more detaail
in the statistics section.
Samples were
w composiited to nominal 2m length
hs for all do mains, compositing on a best fit lengtth
rather thaan a standard
d length enssuring no losss of samplee in the com
mpositing pro
ocess. A 2m
m
composite length was chosen
c as it is 50% of the thickness o
of a 4m blocck model cell height, whicch
allows for some short scale granularity in the estimate in aan attempt to ort scale grad
o reflect sho de
variability.

Pagge143
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

14.5 Statistics
S
14.5.1 Bulk
B Densitty
Rock denssity (specific gravity)
g was interpolated into the mo
odel using neearest neighbour estimatees;
density values by rock type
t are preseented in Table 14.5-1.
Table 14.5-1 Descripttive Statisticss of Shahuind

do Density V
Values by Rocck Type
SG
G S
Specific Gravitty Statistics (g
g/cm3)
Rock Type
(g/cm
m3) Count Mean Median Min M
Max Std Dev
v
Overburden 1.80
0* 15 2.11 2.077 1.68 2.59 0.26
Unsiliccified Sediment (Oxide) 2.29

9 127 2.31 2.333 1.69 2.69 0.17
Silicifieed Sediment (Ox

xide) 2.37
7 57 2.37 2.455 1.83 2.59 0.20
All Sed
diment (Mixed) 2.55
5 36 2.57 2.611 2.09 2.91 0.18
Unsiliccified Sediment (Sulfide) 2.45

5 125 2.50 2.499 1.40 3.40 0.30
Silicifieed Sediment (Sulfide) 2.58

8 39 2.63 2.644 2.16 3.40 0.26
Porphyyry (Oxide-Mixeed) 2.04

4 132 2.06 2.099 1.45 2.64 0.25
Porphyyry (Sulfide) 2.25

5 46 2.26 2.311 1.71 2.75 0.27
Minera
alized Material (Oxide-Mixed
( on
nly)
Unsiliccified Low Gradee (~0.1-0.7 g/t Au)

A 2.15
5 268 2.18 2.200 1.54 2.90 0.25
Silicifieed Low Grade 2.30

0 227 2.32 2.366 1.59 2.87 0.23
Unsiliccified Moderate Grade

G (0.7-2.0 g/t
g Au) 2.13
3 178 2.17 2.188 1.40 2.66 0.26
Silicifieed Moderate Graade 2.25

5 78 2.26 2.344 1.40 2.72 0.28
Unsiliccified High Gradee (>2.0 g/t Au) 2.10
0 40 2.15 2.177 1.45 2.62 0.28
Silicifieed High Grade 2.20

0 25 2.32 2.355 1.91 2.61 0.23
* assign
ned value
14.5.2 Gold
G Statisttics
The densitty of gold datta is reasonaably uniform and did not w
warrant any form of declustering prio
or to
analysis. The
T statistics on the 2m composites
c are very similaar for both o
oxide and sullfide domainss and
support th
he use of a soft
s boundaryy between th
he oxide andd sulfide dom
mains for estimation purpposes
(Figure 14.5-1).

Pagge144
Shahuindo Mine,
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ort

Log Probability
P Plot for Au
A Log Probability Plot
P for Au
Ox ide-All Au Domains Sulfide-All Au Domains
9
99.99 99.99
Points: 34320 P
Points: 11378
Weights: 34320 Weeights: 11378
9
99.9 99.9
8
99.8 Mean: 0.482 M
Mean: 0.449
99.8
Std Dev: 1.090 Std
d Dev: 0.994
9
99 Variance: 1.188 99 Varriance: 0.987
8
98 CV: 2.261 98 CV: 2.215
Cumulative Probability (%)

5
95 Skewness: 15.423 95 Skew
wness: 11.872
0
90 Kurtosis: 452.4422 Kurrtosis: 241.143
90
Geom Mean: 0.253 Geom Mean:
M 0.231
0
80 Log-Est Mean: 0.448 80 Log-Est Mean:
M 0.413
0
70 70
0
60 Maximum: 57.29 60 Maxim
mum: 35
0
50 75%: 0.467 50 75%: 0.423
0
40 50%: 0.240 40
0
30 50%: 0.220
25%: 0.133 30
0
20 25%: 0.122
Minimum: 0 20
Minim
mum: 0
0
10 10
5 5
2 2
1 1
5
0.5 0.5
2
0.2 0.2
0.1 0.1
5
0.05 0.05
2
0.02 0.02
0.01 0.01
0.001 0.01 0.1 1 10 0.001 0.01 0.1 1 10
Au Au
Log
g Histogramfor Au Log Histogra
amfor Au
Ox
xide-All Au Domains Sulfide-All Au
u Domains
50
13
3 P
Points: 34320 Points: 11378
Weeights: 34320 Weights: 11378
12
2
Mean: 0.482 Mean: 0.449
12.5
11
1 Std
d Dev: 1.090 Std Dev: 0.994
Varriance: 1.188 Variance: 0.987
Frequency (% of 11378 points)
10
0 CV: 2.261 CV: 2.215
Skew
wness: 15.423 Skewness: 11.872
9 Kurtosis: 452.442 10.0 Kurtosis: 241.1433
Geom Mean: 0.253 Geom Mean: 0.231
8 Log-Est Mean: 0.448 Log-Est Mean: 0.413
7 Maxiimum: 57.29 7.5 Maximum: 35
75%: 0.467 75%: 0.423
6 50%: 0.240 50%: 0.220
25%: 0.133 25%: 0.122
5 Miniimum: 0 Minimum: 0
5.0
4
3
2.5
2
0 0.0
0.001 0.01 0.1 1 10 0.001 0.01 0.1 1 10
Au Au
Figure 14
4.5-1 Gold statistics
s plotts for all dom
mains
Gold distribution of the 2m compo

osites are typically well strructured, witth minimal ouutliers; hencee very
limited graade capping was
w applied. The only excception to thhis is domain 1200, which is the intrussive in
the southeern domain. There are some
s sporadic higher graddes within thhis domain thhat required more
restrictive capping.
Detailed statistics are only presentted for the oxide

o domai ns (Table 144.5-2) as the sulfide dom
main is
nd has little materiality
Inferred an m to the project at this stage in development. Similar criteria havee been
applied to upper cuts on gold compo
osites within the
t sulfide do
omain as per the oxide do
omain.

Pagge145
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

Ta
able 14.5-2 Descriptive Statistics forr Gold Oxide
e Domains
Sub- Nu
um of Mean Median Std Min Max Au C
Capping Perccentile
Domain CV
V
Domain Co
omps Au g/tt Au g/t Dev Au g/t g/t A
Au g/t Ap
pplied
North 11 7,816
7 0.39 0.21 0.82 2.008 0 37.17 7 0..50%
North 22 219
2 0.49 0.25 0.7 1.444 0.005 4.44 NC N
NA
North 44 1,287 0.55 0.21 1.74 3.1 5 0.005 26.52 25 0..15%
North 55 14
4,171 0.52 0.25 1.18 2.229 0 37.36 20 0..05%
North 66 428
4 0.33 0.19 0.63 1.992 0 9.28 6 0..50%
South 1001 3,933 0.6 0.31 1.1 1.884 0.005 16.65 8 0..70%
South 1002 790

7 0.38 0.25 0.47 1.223 0.005 5.07 NC N
NA
South 1003 2,617 0.51 0.27 1.38 2.772 0.005 57.29 8 0..50%
South 1004 165 0.34 0.24 0.35 1.003 0.02 3.37 NC N

NA
South 1006 34 0.3 0.15 0.58 1.994 0.05 3.06 NC N

NA
South 1007 901

9 0.34 0.22 0.56 1.668 0.005 12.52 6 0..15%
South 1008 89 0.64 0.26 1.69 2.664 0.05 11.85 NC N

NA
South 1009 627

6 0.4 0.23 0.63 1.559 0.011 8.35 NC N
NA
South 1010 49 0.23 0.13 0.26 1.1 5 0.01 1.21 NC N

NA
South 1011 40 0.21 0.15 0.21 0.997 0.007 0.86 NC N

NA
South 1012 430

4 0.38 0.21 0.61 1.663 0 6.15 NC N
NA
South 1013 22 0.52 0.45 0.21 0.441 0.2 1.08 NC N

NA
South 1014 78 0.64 0.27 0.94 1.446 0.05 5.79 NC N

NA
South 1015 35 0.45 0.35 0.54 1.22 0.005 3.34 NC N

NA
South 1016 7 0.72 0.85 0.5 0.669 0.15 1.28 NC N

NA
South 1018 7 0.56 0.43 0.51 0.991 0.12 1.63 NC N

NA
South 1019 10 1.5 0.58 2.74 1.883 0.21 9.11 NC N

NA
South 1020 14 0.24 0.23 0.2 0.881 0.08 0.87 NC N

NA
South 1021 12 0.44 0.29 0.46 1.005 0.11 1.76 NC N

NA
South 1022 31 0.57 0.27 0.71 1.224 0.09 3.15 NC N

NA
South 1141 348

3 0.53 0.28 0.88 1.666 0.02 9.26 NC N
NA
South 1200 9 2.97 0.3 3.21 1.008 0.12 6.51 6 330%
South 1300 151 0.21 0.11 0.41 1.994 0.01 4.38 2 1..10%
Tottal 34
4,320 0.48 0.24 1.09 2.2
26 0 57.29

Pagge146
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

14.5.3 Silver
S Statisstics
The statisttics for silverr distribution (located witthin the 0.1 gg/t Au domains) show suufficient differrences
between oxide
o and sulffide domains to warrant a hard estimaation boundary (Figure 144.5-2). This is also
evident wh
hen reviewingg cross sectio
ons. The uppeer end of thee distributionss are a little less stable thaan the
gold populations and heence slightly more
m aggresssive upper cutts have been applied to silver composiites in
an attemptt to reduce th
he risk of oveer-estimation of grade, pa rticularly the domains witth smaller am
mounts
of data and
d erratic high grades.
Detailed statistics are only presentted for the oxide

o domai ns (Table 144.5-3) as the sulfide dom
main is
nd has little materiality
Inferred an m to the
t project att this stage inn developmennt.
Log Probability Plot

Pl for Ag Log Proba
ability Plot for Ag
Oxide-All Au Do
omains Sulfide-A
All Ag Domains
99.99 99.99
Pooints: 34320 Points: 11378
Weig ghts: 34320 Weights: 11378
99.9 99.9
Mean: 7.059 99.8 Mean: 15.771
99.8
Std Dev:
D 27.531 Std Dev: 60.937
99 Variaance: 757.978 99 Variance: 3713.338
98 98 CV: 3.864
CV: 3.900
95 Skewn ness: 25.547 95 Skewness: 16.994

Kurtotosis: 1182.656 90 Kurtosis: 472.958
90
Geom Mean: 2.442 Geom Mean: 4.024
80 80 Log-Est Mean: 13.109
Log-Est Mean: 6.214
70 70
60 Maxim
mum: 2020 60 Maximum: 2425
50 7
75%: 5.500 50 75%: 9.920
40 40 50%: 3.675
5
50%: 2.300 30
30 25%: 1.450
2
25%: 1.000 20
20 Minimum: 0
Minim
mum: 0
10 10
5 5
2 2
1 1
0.5 0.5
0.2 0.2
0.1 0.1
0.05 0.05
0.02 0.02
0.01 0.01
0.001 0.01 0.1 1 10 100 1000 0.001 0.01 0.1 1 10 100 1000
Ag Ag
Log Histogramfor
fo Ag Log Histo
togramfor Ag
Oxide-All Au Dom
mains Sulfide-Alll Ag Domains
Points: 34320 13 Poinnts: 11378

Weights: 34320 Weighhts: 11378
Mean: 7.059 12
Meaan: 15.771
Std Dev: 27.531 Std Deev: 60.937
11
10.0 Variance: 757.978 Variance: 3713.338
CV: 3.900 10 C
CV: 3.864
Skewness: 25.547 Skewneess: 16.994
Kurtosis: 1182.656 9 Kurtossis: 472.958
Geom Mean: 2.442 Geom Meaan: 4.024
7.5 Log-Est Mean: 6.214 8 Log-Est Meaan: 13.109
Maximum: 2020 7 Maximum: 2425
75%: 5.500 75%: 9.920
50%: 2.300 6 50%: 3.675
5.0 25%: 1.000 25%: 1.450
Minimum: 0 5 Minimum: 0
4
3
2.5
2
0.0 0
0.001 0.01 0.1 1 10 100 1000 0.001 0.01 0.1 1 10 100 1000
Ag Ag
Figure 14..5-2 Silver statistics

s plo ts for all dom
mains

Pagge147
Shahuindo Mine,
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Tab
ble 14.5-3 Descriptive Statistics forr Silver Oxide
e Domains
Sub- Nu
um of Meann Median Std Min Max Ca
apping Perccentile
Domain C
CV
Domain Co
omps Ag g/tt Ag g/t Dev Ag g/t Ag g/t A
Ag g/t Applied
North 11 7,816
7 3.89 1.35 11.89 3.005 0 367 90 0.5%
North 22 219 5.71 4.07 7.6 1.332 0 64 NC N

NA
North 44 1,287 6.44 2.85 14.49 4.223 0 255 80 0.9%
North 55 14
4,171 9.10 2.40 38.45 2.229 0 2020 200 0.7%
North 66 428 4.65 2.46 7.71 1.666 0 94.69 60 0.6%
South 1001 3,933

3 7.0 3.23 14.6 2.008 0.05 270.56 100 0.7%
South 1002 790 5.44 2.79 12.20 2.224 0.05 257 80 0.6%
South 1003 2,617

2 7.13 3.90 14.49 2.003 0.05 339.05 100 0.6%
South 1004 165 3.69 2.28 5.00 1.336 0.20 43.20 12 4.0%
South 1006 34 1.0 0.80 0.51 0.552 0.05 2.30 NC N

NA
South 1007 901 4.21 2.50 6.49 1.554 0.050 81.88 NC N

NA
South 1008 89 15.02 2.55 47.43 3. 16 0.30 290.50 100 2.5%
South 1009 627 5.3 2.20 12.14 2.330 0.050 206.95 90 0.5%
South 1010 49 3.24 1.08 7.69 2.337 0.23 51.08 NC N

NA
South 1011 40 1.49 0.80 3.14 2. 11 0.12 20.40 NC N

NA
South 1012 430 6.62 3.00 17.06 2.558 0 189 NC N

NA
South 1013 22 3.34 3.14 1.30 0.339 1.8 7.27 NC N

NA
South 1014 78 23.66 3.29 66.48 2.881 0.05 477.47 95 7.0%
South 1015 35 1.79 1.00 2.32 1..3 0.05 8.50 NC N

NA
South 1016 7 2.05 1.60 1.5 0.772 0.30 4.40 NC N

NA
South 1018 7 22.60

0 7.80 44.04 1.995 1.20 122 NC N
NA
South 1019 10 9.2 3.20 16.49 1.779 1.20 54 20 7.5%
South 1020 14 2.76 2.50 1.5 0.555 1.40 7.50 NC N

NA
South 1021 12 6.35 7.55 4.23 0.770 1.00 13.32 NC N

NA
South 1022 31 71.67

7 14.12 145.98 2.003 0.66 752.64 400 2.0%
South 1141 348 8.18 2.50 24.47 2.999 0.05 382 150 0.5%
South 1200 9 94.85 23.6 103.58 1.009 3.90 209 NC N

NA
South 1300 151 2.18 1.10 3.61 1.665 0.05 36.30 8 4.0%
Total 34
4,320 7.06 2.30 27.53 3..9 0 2020

Pagge148
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14.5.4 Minor
M Elem
ments
A suite of other minorr elements weere reviewed
d to mainly asssist in wastee rock characcterization sttudies.
These elem
ments are terrmed minor as they havee little to no economic im
mpact on the oxide resourrce or
reserve esstimate. Thee minor elem
ments estimateed are: sulfurr, copper, lead, zinc, arseenic, molybdeenum,
calcium, to
otal iron, sodium and mangganese.
o each elemeent was undeertaken in thrree dimensionns and statisttically to deteermine appropriate
A review of
domains for
f estimatio
on. A varieety of consttraints were applied whhere approprriate, based upon
combinatio
ons of rock tyype and oxidation state. Domains useed for the esttimation of thhe minor elem
ments
are summaarized in Table 14.5-4; desscriptive statisstics of the m
minor elementt data is show
wn in Table 14.5-5.
No upper cuts were ap
pplied to anyy of these eleements for thhe estimationn. Hard domaains were useed for
minor elem
ment estimatio
on.
Table 14.5-4 Harrd Domains Used

U for Min
nor Element Estimation
Elementt Domain 1 Domain

D 2 D
Domain 3 Domain 4
As Colluvium Intrusive All Other SSediments-Oxide All Other Sediments-Sulffide
Ca Colluvium Intrusive All Other SSediments-Oxide All Other Sediments-Sulffide
Cu Colluvium All Other Lithologies-Oxid

de All Other LLithologies-Sulfidde
Fe Colluvium Intrusive All Sedimennts
Mn Intrusive All Other Lithologies-Oxid

Mo Colluvium All Other Lithologies-Oxid

Na Colluvium Intrusive All Sedimennts
Pb Colluvium Intrusive All Sedimennts
S Intrusive-Sulffide All Litholo

ogies-Oxide All Sedimennts-Sulfide
Zn Colluvium All Litholo

ogies-Oxide All Other LLithologies-Sulfidde

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Table 14.5-5 Description Statistics for Minor Ellements
Std
Elem
ment Sub-Domain
S Count Mean Median
n C
CV Min M
Max Units
Dev
As
A Colluvium
m 3,518 500.10
5 419.75 538.10 1 .08 2.980 10,000 ppm
As
A Intrusive 7,635 340.20
3 144.00 670.80 1 .97 1.000 12,300 ppm
As
A All Sedim
ments-Oxide 44,530 697.40
6 492.00 846.30 1 .21 1.000 31,800 ppm
As
A All Sedim
ments-Sulfide 17,278 652.30
6 417.00 885.00 1 .36 1.000 18,500 ppm
Ca
C Colluvium
m 3,342 0.03 0.01 0.06 1 .93 0.005 1.79 %
Ca
C Intrusive 7,151 0.10 0.03 0.23 2 .26 0.005 3.41 %
Ca
C All Sedim
ments-Oxide 40,090 0.02 0.01 0.04 2 .27 0.005 1.79 %
Ca
C All Sedim
ments-Sulfide 16,547 0.10 0.01 0.66 66.4 0.005 220.95 %
Cu
C Colluvium
m 3,519 68.30 54.10 76.40 1 .12 5.740 22,000 ppm
Cu
C Other Litthologies-Oxide 58,036 68.70 27.80 303.20 4 .41 - 24,728 ppm
Cu
C Other Litthologies-Sulfide 23,488 641.10
6 98.90 2,746.80 4 .47 - 1997,375 ppm
Fe
F Colluvium
m 3,342 4.36 4.21 2.19 00.5 0.190 333.29 %
Fe
F Intrusive 7,151 2.98 2.56 2.21 0 .74 0.090 225.86 %
Fe
F All Sedim
ments 53,295 5.20 4.54 3.27 0 .63 0.020 337.62 %
Mn
M Colluvium
m 3,342 124.30 44.00 311.80 2 .51 1.000 88,444 ppm
Mn
M Other Litthologies-Oxide 58,036 92.20 13.00 573.50 6 .22 - 38,524 ppm
Mn
M Other Litthologies-Sulfide 23,488 454.80
4 26.90 2,050.00 4 .51 - 50,000 ppm
Mo
M Colluvium
m 3,518 1.53 1.00 2.30 11.5 0.500 107.00 ppm
Mo
M Other Litthologies-Oxide 58,036 1.30 0.75 2.17 1 .68 - 107.00 ppm
Mo
M Other Litthologies-Sulfide 23,488 1.26 1.00 1.91 1 .52 - 999.30 ppm
Na
N Colluvium
m 3,342 0.008 0.005 0.02 1 .86 0.005 0.28 %
Na
N Intrusive 7,151 0.017 0.010 0.070 4.0060 0.005 2.11 %
Na
N All Sedim
ments 53,295 0.019 0.005 0.054 2.9930 0.005 1.88 %
Pb
P Colluvium
m 3,519 226.30
2 111.20 411.50 1 .82 1.000 10,000 ppm
Pb
P Intrusive 7,671 196.90 28.00 959.10 4 .87 1.000 39,867 ppm
Pb
P All Sedim
ments 58,310 292.20
2 65.00 1,326.50 4 .54 1.000 1446,562 ppm
S Intrusive--Sulfide 3,225 1.92 1.31 2.16 1 .12 - 110.10 %
S All Lithologies-Oxide 58,036 0.22 0.03 0.68 3 .05 - 110.10 %
S All Sedim
ments-Sulfide 20,263 4.51 4.46 3.52 0 .78 - 110.10 %
Zn
Z Colluvium
m 3,519 59.00 33.70 90.80 1 .54 0.250 22,181 ppm
Zn
Z All Otherr Lithologies-Oxid
de 58,036 43.80 10.70 162.00 33.7 - 88,192 ppm
Zn
Z All Lithologies-Sulfide 23,488 680.60
6 48.30 2,880.00 4 .23 - 1009,418 ppm

Pagge150
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
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14.6 Variograp
V phy
Gold and silver
s semi-vaariograms witthin the 0.1 g/t
g Au domainn are generallly poorly strructured for m
most
domains, even
e with lo
og or normaal score tran
nsformations applied. Thhe major cause of the ppoor
variogram structures ap
ppears to be the
t conflict of
o two shorteer range mineeralized structtures which ttrend
north and northeast within
w the oveerall mineralizzed north-no
orthwest trennd. This connflict is evident in
most domaains that havee significant data points (Fiigure 14.6-1).. The poor gglobal variogrram model for the
overall strike of the do
omains contraasts with the improved vaariogram model aligned w
with the northherly
or northeaast trending short-scale
s sttructures. Reemoving thesse individual higher grade structures iss not
possible with the curren
nt data densitty. It is expected that clossely-spaced bblasthole inforrmation and iin-pit
mapping will
w aid in defin
ning these structures moree accurately.
In general, the nugget variance

v is mo
oderate to high, generally greater thann 50%. Rangees of continuiity at
the total sill are typically around 100-150m, with
h approximateely 75% of thhe total variance typically seen
in the firsst 25m (Figure 14.6-2). There is no
o apparent ddifference in the variograams betweenn the
northern and
a southern domains.
The resultts of the vario

ography led to
t the use off inverse disttance methodds for grade estimation raather
than ordinary kriging as there weree concerns th
hat the use o
of ordinary krriging would over-smoothh the
mation relativve to the com
grade estim mposite gradess.
Figu
ure 14.6-1 Horizontal
H Va
ariogram Fan
n for Gold D
Domain 1001

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Pairwise Relative Horizontal Co

ontinuity for Au Pairwise Relative Horizzontal Continuity for Au
A
00-->120 in Domain 11 00-->120 in
n Domain 55
Lag Lag 825000

0.525 25 240
0000 25
0.60
220
0000 750000
0.55
0.450 200
0000 675000
0.50
180
0000 0.45 600000
0.375
160
0000 0.40 525000
Pair Counts
Pair Counts
Gamma ((*))
Gamma (*)
140
0000 0.35
0.300 450000
120
0000 0.30
375000
0.225 100
0000 0.25
300000
800
000 0.20
0.150 225000
600
000 0.15
150000
400
000 0.10
0.075
200
000 0.05 75000
0.000 0 0.00 0
0 50 100 150 200 250 300 350 400 450 500 0 50 100 150 200 25
50 300 350 400 450
0 500
Sample Separation (m
m) Sample Seeparation (m)
Figure 14.6-2 Variograms of Sam

mples Along S
Strike
14.7 Block
B Mod
delling
The resource block mo

odel was gen
nerated usingg Maptek Vullcan miningg software annd imported into
Datamine. The parent block size is 4 mE x 8 mN
N x 4 mRL. A vertical cell size 4m was used to allow
w for
bench heigght optimizatiion studies. An
A 8 mE x 16 mN x 8 m RL background model waas created aro
ound
the resourrce interpretaations in Dataamine softwarre to allow fo
or Whittle pitt optimizationns.
All wirefraames were checked visuaally to ensuree that there was adequatte filling withh blocks. All gold
domains were
w projecteed above the topographic surface, wheere appropriaate, to ensuree that there w
were
no edge effects
e in volume filling, and
a then trim
mmed with tthe surface ttopography. T
The block m
model
parameterss are shown
n in Table 14
4.7-1. Each block was ccharacterizedd by a seriess of attributees as
described in
i Table 14.7-2.
Table 14.7-1 Block

B Model Parameters
Para
ameter East North Elevation
Minim
mum Coordinatees 805,350 9,155,850 2,396
Maxim
mum Coordinattes 809,350 9,159,850 3,356
Paren
nt Block size (m)) 4 8 4
Minim
mum Sub-Block Size
S (m) 1 2 1

Pagge152
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

Table
e 14.7-2 Blo
ock Model A
Attributes Lisst
Attribute Descripttion
IJK Parent Cell Ideentifier
XC Centroid of ceell easting
YC Centroid of ceell northing
ZC Centroid of ceell RL
XINC Cell easting dim

mension
YINC Cell northing dimension

d
ZINC Cell RL dimenssion
ROCK 0=Colluvium;1=Sandstone, 2=Sandstone+Siltsttone; 3=Siltstonne; 4=Breccia; 5=

=Intrusive
RES 0=Internal Waaste; 1=Potential Resource; 999=

=Background
DOM Estimation Dom

main
RESCODE 1=Measured, 2=Indicated,

2 3=In
nferred,4=Unclaassified
DENSITY Bulk Density
OXIDE 1=Sulfide; 2=O

Oxide
AU Uncapped Gold grade (ppm)
AG Uncapped Silveer grade (ppm)
AUCUT Capped Gold grade

g (ppm)
AGCUT Capped Silver grade (ppm)
AS Arsenic grade (ppm)
CA Calcium grade (%)
CU Copper grade (ppm)

FE Total Iron grad
de (ppm)
MN Manganese graade (ppm)
MO Molybdenum grade
g (ppm)
NA Sodium grade (%)
(
PB Lead grade (pp

pm)
S Sulphur grade (%)
ZN Zinc grade (ppm)
NUMSAMAU Number of com

mposites used in
n estimate
PASSAU Estimation Pass

DISTAU Average Distan
nce of composittes from cell cenntroid
NUMDHAU Number of drill holes used in estimate

e

Pagge153
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

14.8 Grade
G Esttimation
The varioggraphic study performed using

u the gold
d composites from the mo
ost heavily po
opulated dom
mains
generally produced
p poo
orly structurred variogram
ms with maxiimum rangess of about 1000 meters inn the
horizontal direction at the
t appropriaate azimuth of
o each majorr domain, with a correspo
onding range o
of 70
meters in the
t semi-majo
or direction. Given the generally poorrly structuredd variograms,, the decisionn was
made to usse in an inverrse-distance in
nterpolation.
A soft redo
ox boundary was used forr both gold and silver esti mates. Whenn reviewing ccross sectionss and
statistics, there
t is no cleear change to
o the distributtion of metal grades acrosss the base off oxidation.
The interp
polation param
meters applieed to the gold and silver domains aree summarized
d in Table 144.8-1.
The first-p
pass search distances take into considerration the re sults of both the variography and drill hole
spacing. The
T second an
nd third passees were desiggned to estim
mate grade innto the majorrity of cells co
oded
to the min
neral domainss that were not
n estimated
d in the first ppass. Octantt based searcches were utiilized
for the firsst two estimaation passes. A minimum of
o four octannts needed to
o be estimated
d and each occtant
required th
he use of at least two composites to obtain an esttimate. This criteria was removed forr the
third estim
mation pass. Interpolation parameters are similar fo
or the minor elements, as per the gold
d and
silver interpolation parrameters, but are not taabled in this report as tthey are nott material to
o the
economicss of the resou
urce estimate..
Gold, silver and minor element grad

des were interrpolated usinng inverse disttance to the tthird power (ID3)
and nearesst-neighbor methods.
m Thee mineral reso
ources reportted herein weere estimated
d by ID3 methhods,
using capped grades for gold and silver and uncaapped gradess for minor eelements. A nearest-neighbor
estimate was
w completed
d as a check on
o the ID3 intterpolation fo
or gold and silver.
The estimaation passes were perforrmed indepen mineral domaains, so that only
ndently for eeach of the m
composites coded to a particular domain werre used to eestimate gradde into blockks coded by that
domain. Grades
G were estimated in
nto parent ceells only. Sm
mall internal waste blockss were estim
mated
separately from the maain domains. These only occur in thee northern suub-domains. The backgro
ound
model wass also estimatted, with gold and silver composites ccapped prior to the estim
mation to preevent
smearing of
o higher grades into zoness of lower graade material.

Pagge154
Shahuindo Min
ne, Peru

Table 14.8-1 Search Parame
eters Used for Gold
G and Silver E
Estimation
Search Ellipse Ranges Sea

arch Ellipse Orientatio
on First Pass Second Paass T
Third Pass
M
Max. No.
Au Domain Va
ariable Min. No. Max. No
o. Min. No.. Max. No. Min. No. Max. No. Comps
Se
emi- Semi- Search Search F
From Any
Major Minor Ma
ajor Mino
or of of of of of of
Major
M Major Volume Volume
Axis Axis Ax
xis Axis Comps Compss Comps Comps Comps Comps D Drill hole
Axis
A Axis Factor Factor
Used Used Used Used Used Used
11 Au/Ag
A 60 60 25 0o/3
305o -38o/215o -52o/035o 10 16 2 8 16 6 4 16 4
22 Au/Ag
A 50 50 25 0o/3
305o -50o/215o -40o/035o 10 16 2 8 16 6 4 16 4
33 Au/Ag
A 50 50 20 0o/3
305o -87o/035o -3o/215o 8 16 2 6 16 6 3 16 4
44 Au/Ag
A 60 60 25 0o/3
305o -60o/215o -30o/035o 10 16 2 6 16 6 3 16 4
55 Au/Ag
A 60 60 25 0o/3
305o -65o/215o -25o/035o 10 16 2 8 16 6 4 16 4
66 Au/Ag
A 60 60 20 0o/3
305o -80o/035o -10o/215o 10 16 2 8 16 6 4 16 4
1001 Au/Ag
A 50 50 25 0o/3
300o -90o/000o 0o/030o 10 16 2 8 16 6 4 16 2
1002 Au/Ag
A 50 50 25 0o/3
305o -25o/215o -65o/035o 10 16 2 8 16 6 4 16 2
1003 Au/Ag
A 50 50 25 0o/3
305o -52o/215o -38o/035o 10 16 2 8 16 6 4 16 2
1004 Au/Ag
A 50 50 25 0o/3
310o -40o/220o -50o/04
40o 10 16 2 8 16 6 4 16 2
1006 Au/Ag
A 50 50 25 0o/2
295o -60o/205o -30o/02
25o 10 16 2 8 16 6 4 16 2
1007 Au/Ag
A 50 50 25 0o/3
300o -35o/210o -55o/030o 10 16 2 8 16 6 4 16 2
1008 Au/Ag
A 50 50 25 0o/3
300o -52o/030o -38o/210o 10 16 2 8 16 6 4 16 2
1009 Au/Ag
A 50 50 25 0o/3
325o -45o/055o -45o/235o 10 16 2 8 16 6 4 16 2
1010 Au/Ag
A 50 50 25 0o/3
313o -60o/223o -30o/04
43o 10 16 2 8 16 6 4 16 2
1011 Au/Ag
A 50 50 25 0o/3
310o -48o/040o -42o/22
20o 10 16 2 8 16 6 4 16 2
1012 Au/Ag
A 50 50 25 0o/3
310o -48o/040o -42o/22
20o 10 16 2 8 16 6 4 16 2
1013 Au/Ag
A 50 50 25 0o/3
315o -85o/035o -5o/22
25o 10 16 2 8 16 6 4 16 2

Page155
Shahuindo Min
ne, Peru

Tab
ble 14.8-1 (contin
nued) Search Pa
arameters Used for Gold and Sillver Estimation
Search Ellipse Ranges Sea

arch Ellipse Orientatio
on First Pass Second Paass T
Third Pass
Max. No.
Domain Va
ariable Min. No. Max. No.
N Min. No.. Max. No. Min. No. Max. No. Comps
Semi-
S Semi- Search Search F
From Any
Major Minor Ma
ajor Mino
or of of of of of of
Major
M Major Volume Volume
Axis Axis Ax
xis Axiis Comps Comp ps Comps Comps Comps Comps Drill hole
Axis
A Axis Factor Factor
Used Usedd Used Used Used Used
1014 Au/Ag
A 50 50 25 0o/3
310o -85o/220o -5o/04
40o 10 16 2 8 16 6 4 16 2
1015 Au/Ag
A 50 50 25 0o/2
296o -90o/000o 0o/02
26o 10 16 2 8 16 6 4 16 2
1016 Au/Ag
A 50 50 25 0o/2
278o -90o/000o -0o/22
20o 10 16 2 8 16 6 4 16 2
1018 Au/Ag
A 50 50 25 0o/3
315o -38o/045o -52o/2
225o 10 16 2 8 16 6 4 16 2
1019 Au/Ag
A 50 50 25 0o/3
334o -80o/244o -10o/0
064o 10 16 2 8 16 6 4 16 2
1020 Au/Ag
A 50 50 25 0o/3
335o -85o/245o -5o/06
65o 10 16 2 8 16 6 4 16 2
1021 Au/Ag
A 50 50 25 0o/2
292o -90o/000o 0o/02
22o 10 16 2 8 16 6 4 16 2
1022 Au/Ag
A 50 50 25 0o/2
292o -90o/000o 0o/02
22o 10 16 2 8 16 6 4 16 2
1041 Au/Ag
A 50 50 25 0o/3
310o -36o/220o -54o/0
040o 10 16 2 8 16 6 4 16 2
1200
Au/Ag
A 50 50 25 0o/3
310o -60o/220o -30o/0
040o 10 16 2 8 16 6 4 16 2
Intrusive-S
1300
Au/Ag
A 50 50 25 0o/3
310o -0o/000o -0o/04
40o 10 16 2 8 16 4 4 16 2
Colluvium-S
Colluvium-N Au/Ag
A 60 60 20 0o/3
310o -0o/000o -0o/04
40o 10 16 2 8 16 4 4 16 2

Page156
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

14.9 Mineral
M Re
esources
14.9.1 Mineral
M Ressource Deffinitions
Mineral Reesources for the Shahuindo deposit are
a classified in accordancce with Canadian Institutte of
Mining, Meetallurgy and Petroleum (CIM)
( CIM Definition
D Stanndards For Mineral Resources and Miineral
Reserves (2
2014), whereaas:
A Mineral Resource is a concentratio

on or occurrrence of solid material of eeconomic inteerest in or onn the
Earths cru
ust in such forrm, grade or quality and quantity that tthere are reassonable prosppects for eventual
economic extraction. The locatio
on, quantity, grade or quality, conttinuity and other geolo
ogical
characterisstics of a Miineral Resourrce are know
wn, estimateed or interprreted from sspecific geolo
ogical
evidence and
a knowledgge, including sampling. Mineral
M Resouurces are subb-divided, in oorder of increasing
geologic connfidence, into Inferred,
I Indicaated and Measured Categorries. An Inferreed Mineral Reesource has a llower
level of connfidence than that applied to
t an Indicatedd Mineral Ressource. An Indicated Minerral Resource hhad a
higher level of confidencce than an Innferred Minerral Resource bbut has a low
wer level of confidence than a
Measured Mineral
M Resource.
An Inferred Mineeral Resourcee is that part of a Mineral Resource for which quanntity and grad
de or
quality are estimaated on the basis
b of limited geological eevidence and sampling. Geeological evidence
ufficient to im
is su mply but not verify
v geologiccal and gradee or quality co
ontinuity. Ann Inferred Minneral
Reso
ource has a lo
ower level off confidence than
t that appplying to an Inndicated Mineeral Resourcee and
mustt not be converted to a Mineral Reeserve. It is rreasonably eexpected thatt the majoritty of
Inferrred Mineral Resources could
c be upggraded to Inddicated Minerral Resourcees with continued
exploration. An Inferred Minneral Resourcee is based onn limited inforrmation and sampling gathhered
throuugh appropriatte sampling teechniques from
m locations suchh as outcrops, trenches, pitss, workings andd drill
holess. Inferred Minneral Resourcees must not bee included in thhe economic aanalysis, produuction schedulees, or
estim
mated mine liffe in publicly disclosed
d Pre-FFeasibility or Fe
Feasibility Studdies, or in the Life of Mine pplans
and cash flow moodels of develloped mines. Inferred
I Mineeral Resourcess can only be used in econnomic
studiies as providedd under NI 43--101.
An Indicated
I Min
neral Resourcce is that part of a Minerral Resourcee for which qquantity, grad
de or
quality, densities,, shape and physical charracteristics arre estimated with sufficieent confidencce to
w the application of Mo
allow odifying Facto
ors in sufficieent detail to
o support m
mine planning and
evalu
uation of the economic viaability of the deposit. Geo
ological evidennce is derived
d from adequately
detaailed and reliaable explorattion, samplingg and testing and is sufficient to assum
me geologicall and
grad
de or quality continuity beetween pointss of observattion. An Indiicated Mineraal Resource hhas a
loweer level of co
onfidence thaan that applying to a Meaasured Minerral Resource and may onlly be

Pagee157
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

convverted to a Probable
P Mineeral Reserve. Mineralizattion may be cllassified as ann Indicated Miineral
Resoource by the Qualified
Q Personn when the naature, quality, qquantity and ddistribution of ddata are such as to
allow
w confident intterpretation of
o the geologiccal frameworkk and to reasoonably assumee the continuiity of
mineeralization. The Qualified Peerson must reecognize the im
mportance off the Indicatedd Mineral Resoource
categgory to the addvancement off the feasibility of the projectt. An Indicatedd Mineral Resoource estimatee is of
sufficcient quality too support a Pre-Feasibility
P Study
S which ccan serve as tthe basis for m
major development
decissions.
A Measured
M Min
neral Resourcce is that parrt of a Minerral Resource for which qquantity, grad
de or
quality, densities,, shape, and physical charracteristics are estimated with confideence sufficiennt to
w the applicattion of Modify
allow fying Factors to
t support deetailed mine pplanning and final evaluatio
on of
the economic viaability of the deposit. Geeological eviddence is derivved from dettailed and relliable
exploration, sam
mpling and teesting and is sufficient to
o confirm geo
ological and grade or quuality
conttinuity betweeen points off observation. A Measureed Mineral R
Resource has a higher levvel of
conffidence than that applyingg to either an
a Indicated Mineral Reso
ource or an Inferred Minneral
Reso
ource. It mayy be converteed to a Proven Mineral R
Reserve or to
o a Probable Mineral Reseerve.
Mineeralization or other natural material of economic intere
rest may be cllassified as a Measured Miineral
Resoource by the Qualified
Q Personn when the naature, quality, qquantity and ddistribution of data are suchh that
the tonnage
t and grade
g or qualiity of the mineeralization cann be estimated to within cloose limits andd that
variaation from the estimate wouuld not significcantly affect ppotential econoomic viability oof the deposit. This
categgory requires a high level of
o confidence in, and underrstanding of, the geology aand controls oof the
mineeral deposit.
Modifying Factors are consideration ns used to co onvert Minerral Resources to Mineral Reserves. T These
include, bu ut are not resstricted to, mining,
m processsing, metallu rgical, infrastructure, econnomic, markeeting,
legal, envirronmental, so
ocial and governmental facttors.
14.9.2 Shahuindo
S Mineral
M Re
esources
The effective date of the Shahuindo Mineral Reso
ource estimatee is 15 April 22015.
Measured and Indicated oxide reso

ources for th
he Shahuindo
o deposit tottal 143.1 milllion tonnes with
average grrades of 0.50 g/t Au and 6.67
6 Ag g/t, containing
c 2.228 million ouunces of gold
d and 30.7 million
ounces of silver. Inferrred oxide ressources totall 2.6 million ttonnes with average grades of 0.42 g//t Au
and 7.40 Ag
A g/t, containing 36,000 ounces
o of go
old and 626,0000 ounces of silver. Oxiide resourcess are
reported within
w a $1,40
00/oz Au optimal Whittle open pit she ll using a 0.144 AuEq g/t cuut-off grade. The
oxide Mineeral Resourcees are summaarized in Tablee 14.9-1.

Pagee158
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

Table 14.9-1 Shahuindo Mineral R
Resources O
Oxide
(0.14 g/t
g AuEq cut-off within $1,400/o
oz Au pit shell)
Tonnes Au
A Grade A
Ag Grade Au Ounces Ag Ounces
Reso
ource Classifica
ation
(M) (g/t) (g/t) (000s) (000s)
Measureed 96.5 0.50 6.73 1,546 20,901

Indicated
d 46.6 0.49 6.53 736 9,778
Measurred and Indicated 143.1
1 0.50 6.67 2,282 30,679
Inferred 2.6 0.42 7.4 36 626
Numberrs may not add due

d to rounding
The Mineral Resourcees reported herein reprresent the inn situ resouurces, with nno economicc or
metallurgiccal recovery factors applied other thaan the $1,4000 per ouncee gold pit sheell applied to
o the
oxide reso
ources.
Table 14.9-2 through Table 14.9-4 are tabulationss of the oxidee resources aat varying cutt-off grades w
within
0/oz Au pit sh
the $1,400 hell for Measu
ured, Indicated
d and Inferre d Resources,, respectively..
Ta
able 14.9-2 Measured Oxide
O Resourrces - Grade Tonnage
Cut-off Tonness Au Grade Ag Graade Au Ouunces Ag O

Ounces
AuEq g/t (M) (g/t) (g/t)) (000s) (000s)
0.01 169.1 0.30 4.333 1,6631 233,540

0.1 104.9 0.47 6.355 1,586 21,426
0.14 96.5 0.50 6.73
3 1,5
546 20
0,901
0.2 81.6 0.56 7.522 1,4470 199,735
0.3 59.3 0.68 9.066 1,2297 177,285
0.4 42.6 0.82 10.7 3 1,123 144,698
0.5 31.4 0.96 12.344 9669 122,458
0.6 24.0 1.10 13.788 8448 100,624
0.7 18.7 1.24 15.0 7 7445 9,,060
0.8 14.9 1.38 16.288 6559 7,,774
0.9 12.0 1.51 17.3 5 5881 6,,680
1.0 9.8 1.65 18.3 6 518 5,,762

Pagee159
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

Ta
able 14.9-3 Indicated Oxide
O Resourrces - Grade Tonnage

Ounces
AuEq g/t (M) (g/t) (g/t)) (000s) (000s)
0.01 97.6 0.26 3.666 816 11,490

0.1 51.0 0.46 6.155 7554 100,078
0.14 46.6 0.49 6.53
3 73
36 9,,778
0.2 39.8 0.55 7.211 7005 9,,237
0.3 28.2 0.68 8.666 617 7,,864
0.4 19.2 0.84 10.2 1 518 6,,294
0.5 13.4 1.02 11.799 4338 5,,066
0.6 9.9 1.20 13.1 5 3881 4,,170
0.7 7.7 1.37 14.199 3440 3,,526
0.8 6.3 1.52 15.188 3007 3,,067
0.9 5.2 1.66 16.1 6 2778 2,,704
1.0 4.4 1.81 17.099 2554 2,,400
Table
T 14.9-4 Inferred Oxide Resourcces - Grade T
Tonnage

Ounces
AuEq g/t (M) (g/t) (g/t)) (000s) (000s)
0.01 7.4 0.17 3.388 41 8809

0.1 2.8 0.40 7.033 377 6642
0.14 2.6 0.42 7.40
0 36
6 6
626
0.2 2.1 0.49 8.577 333 5582
0.3 1.4 0.63 11.188 288 4489
0.4 0.9 0.77 13.3 5 233 4402
0.5 0.6 0.94 15.5 1 199 3321
0.6 0.5 1.10 18.600 166 2275
0.7 0.3 1.33 23.588 133 2236
0.8 0.2 1.57 29.2 1 11 2210
0.9 0.2 1.79 35.3 1 100 1198
1.0 0.1 2.04 43.144 9 1188
Measured oxide resourrces required

d a minimum of ten com posites within 25m of the block centtroid;
Indicated oxide
o resourcces required a minimum of eight com
mposites withiin 50m of the block centtroid;

Pagee160
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

and Inferreed oxide reso
ources requireed a minimum
m of betweenn four and eigght compositees within 1000m of
the block centroid. Irrespective off the resourcce classificatio
on, the estim
mate used a m
maximum of two
composites from a single drill hole fo
or the southeern domains and a maximum of four co
omposites fro
om a
single drill hole for the northern dom
mains.
14.9.2.1 Sulfide Mineral Resou

urces
The sulfidee mineral reso
ources at Shaahuindo are classified
c entirrely as Inferreed due to lim
mited metallurrgical
characterizzation and wiider drill spaccing than in the
t oxide porrtion of the ddeposit, geneerally from 500m x
50m to 10
00m x 100m. There havee been no economic or m
mining studiess of the sulfid
de portion of the
Shahuindo deposit completed to datte; the Inferreed sulfide ressource is repo
orted at a 0.55 AuEq g/t cuut-off
per the req
quirement of reasonable prospects forr eventual eco
onomic extraaction.
The Inferreed sulfide min

neral resourcces for the Sh
hahuindo depposit total 87.7 million tonnnes with aveerage
grades of 0.71
0 g/t Au and 21.08 g/t Ag, containin
ng 2.0 million ounces of go
old and 59.4 million ouncees of
silver, as sh
hown in Tablee 14.9-5.
Table 14.9-5
5 Shahuind
do Mineral R
Resources S
Sulfide
(0.5 g/tt AuEq cut-off)
Tonnes Au Grade Ag G
Grade Au O
Ounces A
Ag Ounces
Re
esource Classiffication
(M) (g/t)
( (g
g/t) (0
000s) (000s)
Inferred 87.7 0.71

0 2 1.08 2
2,002 59,441
Table 14.9-6 is a tabulattion of the Sh

hahuindo Inferrred sulfide rresources at vvarying cut-offf grades.

Pagee161
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

Ta
able 14.9-6 Inferred Su
ulfide Resourrces - Grade T
Tonnage

Ounces
AgEq g/t (M) (g/t) (g/t)) (000s) (000s)
0.1 349.0 0.29 8.044 3,2254 900,216

0.2 196.8 0.45 12.2 1 2.8848 777,272
0.3 153.6 0.52 14.6 5 2,568 722,355
0.4 116.3 0.61 17.6 6 2,2281 666,034
0.5 87.7 0.71 21.0
08 2,0
002 59
9,441
0.6 68.7 0.81 24.4 1 1,7788 533,877
0.7 55.3 0.90 27.622 1,6601 499,136
0.8 45.8 0.98 30.599 1,4444 455,074
0.9 38.5 1.06 33.400 1,312 41,345
1.0 32.6 1.15 36.1 5 1,2206 377,905
2.0 9.2 1.89 60.722 5660 177,976
3.0 3.2 2.58 88.700 2664 9,,070
4.0 1.4 3.29 112.661 1444 4,,926
5.0 0.7 4.08 128.002 877 2,,717
The classiffication of Infferred Resou

urces requireed at least 4 drill hole co
omposites witthin 100m off the
block centtroid, with a maximum off two composites from a single drill hole for the ssouthern dom
mains
and a maxiimum of four composites from
f a single drill hole forr the northernn domains.
14.10 Resource
e Model Checks
C
14.10.1 Composites
C s vs Model Grades
Gold and silver composites coded
d by sub-dom
main were co
ompared to the Measured and Indiccated
resource within
w the model sub-dom
mains. Sub-d oved
domains withh less than 1000,000 tonnees were remo
from the comparison ass they typicallly have very few
f composittes.
As shown in Table 14.10-1, the aveerage gold co

omposite valuues compare favorably to the block m
model
gold valuess, with three sub-domains displaying sliightly higher ggrades in thee resource mo
odel. The ovverall
gold grade estimate is slightly
s below
w the average composite ggrade. Silver comparisons are slightly m
more
variable, paarticularly in the
t southern sub-domainss where theree are smaller amounts of ccomposites.

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Table 14.10-1 Composites vs Resou
urce Model G
Grades
Composites Resourcce Model

Do
omain Sub-Doma
ain Au Ag Au A
Ag
Count Tonnes
(g/t) (g/t) (g/t) (g
g/t)
North
N 11 7,816 0.39 3.89 440,388,439 0.34 4.15
North
N 12 219 0.49 5.71 405,694 0.23 4.62
North
N 44 1,287 0.55 6.44 111,650,605 0.58 6.79
North
N 55 14,171 0.52 9.10 666,549,549 0.48 8.49
North
N 66 428 0.33 4.65 3,571,893 0.36 6.37
Total Nortthern Domains 23,921 0.48 7.14 12
22,566,180 0.44 6.83
South 1001 3,933 0.60 7.03 223,542,517 0.57 77.41
South 1002 790 0.38 5.44 5,011,830 0.35 5.48
South 1003 2,617 0.51 7.13 111,929,335 0.50 77.78
South 1004 165 0.34 3.69 1,982,346 0.29 3.12
South 1007 901 0.34 4.21 3,729,064 0.30 4.36
South 1008 89 0.64 15.02 542,995 0.56 111.54
South 1009 627 0.40 5.27 1,654,303 0.36 4.66
South 1010 49 0.23 3.24 171,115 0.22 2.95
South 1012 430 0.38 6.62 3,000,419 0.37 77.25
South 1014 78 0.64 23.66 397,175 0.63 199.35
South 1015 35 0.45 1.79 139,539 0.48 1.55
South 1022 31 0.57 71.67 119,792 0.70 788.21
South 1141 348 0.53 8.18 973,408 0.43 6.37
Total Soutthern Domainss 10,093 0.51 6.90 53,193,837 0.49 7.08
Total 34,014 0.48 7.07 17
75,760,017 0.45 6.90
14.10.2 Nearest
N Ne
eighbor Check Estima
ate
A nearest-neighbor model was estim
mated to com
mpare with thee Measured aand Indicated resources w
within
the ID3 model.
m Sub-d
domains with
h less than 100,000
1 tonnnes were rem
moved as thhey typically have
insufficientt data points for valid comparison. The
T nearest nneighbor estiimate was lim
mited to the first
search pass and constraained within the
t same dom
mains as the IID3 resource estimate. Ass shown in Fiigure
hrough Figuree 14.10-3, th
14.10-1 th here is good
d correlationn between thhe two estim
mates with ssome
variance occcurring in arreas of lower data density at the marginns of the depo
osit.

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Figure 14.10
0-1 Inverse Distance
D (ID3) vs Nearestt Neighbor Estimate by E
Easting
Figure
F 14.10--2 Inverse Distance (ID3) vs Nearest N
Neighbor Estimate by No
orthing
Figure
F 3 Inverse Diistance (ID3) vs Nearest N
14.10-3 Neighbor Esttimates by Ellevation

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14.10.3 Visual
V Com
mparisons
Visual com
mparisons on cross sectio
ons and planss display a c lose correlattion of compposite gradess and
resource model
m gradess. There does appear to
o be minor s mearing of hhigher gradess on a local llevel,
though thiis is not seen
n as a materrial issue duee to the maj ority of the higher-gradee compositess and
correspond
ding block graades being su
urrounded by lower grade material.
14.10.4 Additional
A Informatio
I on and Disc
cussion
14.10.4.1 Gold-Equiivalent Calc
culation
Gold-equivvalent grades in the Shahuindo resourcce block mod el were calcuulated using tthe individual gold
and silver grades for eaach block and
d metal pricees of $1,200 per ounce gold and $15 per ounce silver.
ula used to calculate the Au
The formu uEq grade is AuEq
A g/t = A u g/t + (Ag g//t x 15/1200).
14.10.4.2 Confidenc
ce of Key Crriteria
The classiffication of the
t resource estimate ass Measured, Indicated annd Inferred is based on the
confidencee of the inp
put data and
d geological interpretatio
on, and gradde estimationn parameterss, as
summarizeed in Table 14
4.10-2.
Table 14..10-2 Confid

dence Levelss of Key Crite
eria
Item
ms Discussion Confidence
Drilling Techniiques RC
C and diamond drilling with documeented good quality techniques. High
Logging Staandard nomenclatu

ure now adopted. Moderatee
Drill Sample Recovery Higgh recoveries of RC

R and diamond co
ore samples. High
Sub-sampling Techniques
T
mples are reliable to adequately rep
Sam present both styless of mineralizationn. High
and Sample Preeparation
Quality of Assaay Data Daata is reliable, baseed on QAQC resu

ults and observed aand documented ppractices. High
Survey of all collars conducted with DGPS

D by professionnal surveyors. Toppographic surface
Location of Sam
mple Points is based
b on 2m surveey contours. Histtorical downhole ssurveys are of goood quality, Moderatee
hoowever the Januaryy-March 2015 cam mpaign was not dowwnhole surveyed.
Drrilling on nominal 25m

2 x 25m spacing for the majorityy of the oxide dom
mains consisting off High Oxiide
Data Density and
a
RCC and diamond drilling to establish continuity.
c Drillingg on nominal 50m x 50 spacing for
Distribution Moderate - Sulfide
thee majority of the sulfide
s domains, altthough some largee data gaps do exi st.
Logging and mappingg checked on site. Work still requirred to determine ffiner scale
Geologic Conttrols Moderatee
geo
ological controls, particularly in the northern portion of the deposit.
Database Integgrity Mu
ultiple audits; assayy certificates checked. High
Mineralization interp
pretations are considered reliable fo
or oxide domains aas bulk mining
enttities. Further wo
ork required on 50m and 25m sectiions to determine local controls.
Geological Inteerpretation Moderatee
Sulfide domains requuire metallurgical test
t work, and mo ore detailed structtural and
ological review and more drilling.
geo

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(Ta
able 14.10-2 continued)
c Confidence Levels of Keyy Criteria
Item
ms Discussion Confidence
Estimation and
d Modelling Invverse distance cub
bed is an industry standard
s estimatorr in high-sulfidatio
on deposits with
High
Techniques mo oderate nuggets annd relatively shortt ranges of continuuity.
Reeasonable cut-off grades

g applied for the
t proposed minning method. Ag hhas been
Cut-off Gradess disscounted as addingg any value to the cut-off grade, giveen that Ag lies alm
most entirely withinn High
thee Au mineralizatio
on envelopes, and has
h 15% metallurggical recovery.
Mining Factorss or
Parent block size forr oxides is in line with
w the SMU plannned for mining. High
Assumptions
Metallurgical Factors or Meetallurgy is based on

o extensive test work
w for both ROOM and agglomerat ation phases of thee High Oxiide
Assumptions ox
xide project. Metaallurgy is of an unkknown quantity forr sulfide mineralizaation. Low - Sulfide
Tonnage Facto
ors
Suffficient bulk densitty work for global averages. Moderatee
(in situ bulk deensities)
14.10.4.3 Discussion
n
As demon
nstrated by closely-spaceed drilling, geologic
g inteerpretation, aand resourcee modelling, the
Shahuindo deposit is ch
haracterized by
b continuouss, near-surfacce mineralizattion that exteends over a strike
of approxiimately four kilometers. Mineralizatio
on is dissemiinated on fraactures and w
within folded and
faulted sed
dimentary un
nits, with higgher grades generally rellated to highh-angle strucctures at varriable
orientation
ns, areas of in
ncreased silicification, and along
a zones o
of dense fractturing and breecciation.
Block mod
del cross secttions through
h the southerrn and northeern portions of the Shahuuindo depositt are
shown in Figure
F 14.10-4
4 and Figure 14.10-5, respeectively.
There are several areaas proximal to

t the existin
ng resource tthat have eaarly indicationns of potential to
expand thee overall ressource at Shaahuindo and Tahoe believves there is good potenttial to add to
o the
resource with
w addition
nal exploratio
on. Explorattion targets nnear the Shaahuindo depo
osit are discuussed
further in Section
S 24 Other Relevaant Data and Information.
To the besst of Tahoes knowledge, there are no specific enviironmental, ppermitting, leggal, title, taxaation,
socio-econ
nomic, markeeting, political, or otherr factors whhich could m
materially affffect the Minneral
Resources at Shahuindo
o.

Pagee166
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NI 43-101 Technical Report

Figure 14
4.10-4 Shahuindo
o Resource Mod
del (Section 500N
N)

P
Page167
Shahuindo Mine,, Peru

NI 43-101 Technical Report

Figure 14.10-5 Shahuindo

o Resource Mode
el - Section 11000N

P
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NI 43-101 Technical
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15.0 MINERAL
M L RESER
RVE ESTIMATES
S
The Minerral Resourcees for Shahuindo have been converteed to Minerral Reserves based uponn the
following modifying
m facttors:
On
nly Measured and Indicated
d Mineral Ressources are inncluded in Miineral Reservves;
On
nly the Mineraal Resources within the $1,400/oz Au o
optimized pitt limit are connsidered;
Mining dilution, mining recovvery and metaallurgical reco
overy factors are applied; and
The Measured and d Mineral Ressources are leegally, economically and technically feaasible
a Indicated
to extract.
The Minerral Reserve estimate was completed by first ideentifying the ultimate pit limits usingg the
economic parameters detailed in Section
S 15.3 and pit optiimization tecchniques. Thhe results off the
on were used
optimizatio d for guidancee in the final pit
p design to allow access for equipment and personnel.
Several phaases of miningg were defineed to enhancee the econom
mics of the prroject. Taho
oe used phaseed pit
designs to define the prroduction sch
hedule using MineMax
M o
open pit net ppresent valuee (NPV) sched
duler
software to optimize th
he NPV undeer a set of mining constraaints. The caash flow model was develo
oped
using costss calculated from
f first prin
nciples and experience
e att Tahoes La Arena mine to determinee the
maximum value
v of the Shahuindo
S deposit and con
nfirm the Minneral Reserves.
15.1 Mineral
M Re
eserves
15.1.1 Mineral
M Resserve Defin
nitions
Mineral Reeserves for th
he Shahuindo
o deposit are classified in aaccordance w
with CIM Defifinition Standarrds
For Minerall Resources annd Mineral Resserves (2014), whereas:
he economicaally mineable part of a Meeasured and/o

A Mineral Reserve is th or Indicated M
Mineral Resouurce.
It includes diluting mateerials and allo
owances for losses,
l which may occur w
when the maaterial is mineed or
extracted and is defineed by studies at Pre-Feaasibility or Feeasibility leveel as approprriate that incclude
n of Modifying Factors. Su
application uch studies demonstrate
d that, at the time of repo
orting, extracction
could reasonably be jusstified. Mineraal Reserves aree sub-divided iin order of inccreasing confiddence into Probbable
Mineral Resserves and Prooven Mineral Reserves.
R A Proobable Mineraal Reserve has a lower level of confidence than
a Proven Mineral Reservee.
A Pro
obable Mineraal Reserve is the econo
omically mineeable part o
of an Indicateed, and in ssome
circum
mstances, a Meeasured Mineeral Resourcee. The confideence in the M
Modifying Facttors applying to a
Probab
ble Mineral Reserve
R is low
wer than thaat applying to
o a Proven M
Mineral Reserrve. The Quaalified
Person((s) may elect to
t convert Meeasured Mineraal Resources tto Probable M ineral Reservees if the confiddence

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NI 43-101 Technical
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in the Modifying
M Factors is lower than
t that appllied to a Proveen Mineral Reeserve. Probabble Mineral Reserve
estimattes must be deemonstrated too be economicc, at the time oof reporting, byy at least a Pree-Feasibility Stuudy.
Proven
n Mineral Reeserve is the economicallly mineable ppart of a Meeasured Mineeral Resourcce. A
Proven
n Mineral Resserve implies a high degreee of confidennce in the Mo
odifying Facto
ors. Applicatioon of
the Prooven Mineral Reserve
R categoory implies thaat the Qualifiedd Person has tthe highest deegree of confiddence
in the estimate
e with the consequennt expectation in the minds of the readerrs of the reporrt. The term shhould
be resttricted to thatt part of the deposit wherre production planning is ttaking place aand for whichh any
variatioon in the estim
mate would nott significantly affect the poteential econom
mic viability of tthe deposit. Prroven
Mineraal Reserve estim
mates must bee demonstrated to be econom
mic, at the tim
me of reportingg, by at least a Pre-
Feasibillity Study. Withhin the CIM Definition
D standdards the term
m Proved Mineral Reserve is an equivalent term
to a Prooven Mineral Reserve.
R
Modifying Factors are consideration onvert Minerral Resources to Mineral Reserves. T

ns used to co These
ut are not resstricted to, mining,
include, bu m processsing, metallu rgical, infrastructure, econnomic, markeeting,
legal, envirronmental, so
ocial and governmental facttors.
15.1.2 Shahuindo
S Mineral
M Re
eserves
Proven and
d Probable Mineral
M Reserrves for the Shahuindo
S m
mine are 111.99 million tonnnes with aveerage
grades of 0.53
0 g/t Au and 6.82 g/t Ag,
A containingg 1.91 million ounces of go
old and 24.5 million ouncees of
silver. Min
neral Reservees for the Shaahuindo mine were develo
oped by applyying relevant eeconomic criiteria
in order to
t define the economicaally extractab
ble portions of the Meaasured and IIndicated Minneral
Resource. The Minerall Reserve Estiimate for thee Shahuindo m
mine is shownn in Table 15..1-1. The Minneral
Reserves are
a reported as in situ drry tonnes at a cut-off graade of 0.18 gg/t Au and innclude 5% m
mining
dilution and 98% miningg recovery.
Table 15.1-1 Sha
ahuindo Mine
eral Reservess
Tonnes Au Grade A
Ag Grade A
Au Ounces Ag Ounces
Resserve Classifica
ation
(M) (g/t)
( (g/t) (000s) (000s)
Proven 82.7
8 0.54 6.92 1,424 18,400
Probable 29.2
2 0.51 6.54 483 6,142
Prov
ven & Probable 11
11.9 0.53 6.82 1,906 24,541
Num
mbers may not ad
dd due to round
ding
The effectiive date of th o Mineral Reserve estimatee is 01 Noveember 2015 uusing metal prices
he Shahuindo
of $1,200 per ounce go 00 per ouncee silver. Mineeral Reservees reported ffor the Shahuuindo
old and $15.0
deposit aree inclusive of Mineral Reso
ources.

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The Minerral Reserve for the Shaahuindo depo
osit is basedd upon mineeralized mateerial reported as
Measured and Indicateed Mineral Resources
R with
w dilution and mining losses considered. ocess
Pro
recovery factors
f or ad
dditional plan
nt losses werre not considdered, thouggh metallurgiccal recovery was
incorporatted into the optimization.
o Inferred Resources contaained within tthe final pit deesign are incluuded
in the Mineeral Reserve as
a dilution wiith zero metaal grades.
Tahoe is not
n aware of
o any specificc metallurgiccal, infrastrucctural, enviro
onmental, legaal, title, taxaation,
socio-econ
nomic or marrketing issues that would im
mpact the Mi neral Reservee Estimate as presented.
15.2 Cut-off
C Grrade
The cut-offf grade value of 0.18 g/t Au

A was used to determinee the minablee portion of tthe Measured
d and
Indicated Resources
R at Shahuindo iss predicated on the assum
mption that m
mine producttion will feed
d the
leach pads and processing facility at capacity
c throughout the m
mine life. All ccosts that are incremental with
production
n are included
d in the cut-o
off value calcu
ulation. Costss in the cut-o
off value calcuulation includee the
variable an
nd fixed costts directly reelated to pro
ocessing, smeelting, refininng, general and administrrative
(G&A) cossts directly reelated to pro
oduction, royalties, and prroject costs rrelated to prroduction and
d the
plant facilitties that do not have a measurable payb
back.
Costs excluded from the

t cut-off vaalue calculatio
on include exxploration, ccapitalized deevelopment ccosts,
capital infrrastructure costs,
c in-mine projects having
h a meaasurable eco
onomic beneffit, and non--cash
charges. The
T cut-off grrade assumes the mining costs
c for an eeconomic opeen pit is a sunnk cost and iss not
used in thee calculation of the cut-offf grade. Susttaining capita l and expansion capital co
osts are excluded
from the cut-off
c value cost
c basis as these costs are
a not incre mental to a sspecific unit o
of productionn but
rather com
mmon to largee portions of the mineral deposit.
d
Cut-off graades to defin

ne the Mineraal Reserves were
w calculatted using opeerating costs from Tahoes La
Arena min
ne which is very similar to
o Shahuindo; the estimateed metallurgiical performaance was souurced
from test work
w and enggineering firstt principles were
w used to dderive operatting costs or obtained from La
Arenas co
ost structure. The minimum cut-off graade of 0.18 g/tt Au was derrived from thee equation:
Diluted Prrocess Cost

COG (A
Au g/t) =
R
Recovery x Metal
M Price witth Royalties a nd Sales Costts
The resulting cut-off grade was used

d to determin
ne the Mineraal Reserves reeported in Taable 15.1-1. SSilver
is considerred to have too
t little valu
ue contributio
on to be inc luded in the cut-off gradee calculation. The
economic assumptions used to deteermine the cu
ut-off grade aare presented in Table 155.2-1 and useed as
or the pit opttimization desscribed in Secction 15.5.
the basis fo

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Table 15.2-1 Cutt-Off Grade A
Assumptionss
Gold Price (US$/oz) 1,200

Processing Cost (US$/tonn
ne) 5.47
Royalties & Sales Costs (USS$/oz Au) 38
Au Recoverry (%) 82
Au Recoverry x Au Price (U
US$) 31.16
Diluted Pro
ocess Cost (US$
$/oz Au) 5.70
15.3 Assumptio
A ons and Paramete
P ers
The Minerral Reserves are

a constraineed by a pit geeometry that has been dettermined by ttechnical and cost
and recoveery inputs. Th
he lists of assu
umptions used for the opeen pit is preseented in Tablee 15.3-1.
Table 15.3
3-1 Pit Opttimization Pa
arameters fo
or Shahuindo
o Mineral Resserve
Mining (US$/tonnee ore & waste)) 2.44
Pro
ocessing (US$/to
onne) 1.573
Sustaining Pad Con

nstruction Capeex (US$/tonne) 0.68
Crrushing & Agglom

meration (US$/ttonne processedd) 1.39
G&
&A (US$/tonne mined)
m 1.83
To
otal Processing
g (US$/tonne processed) 5.47
Ox
xide Gold Recovvery (%) 82
Ox
xide Silver Reco
overy (%) 15
Go
old Price (US$/o
oz) 1,200
Silvver Price (US$/o
oz) 15
Meetal Payables (%)) 99.9
Ro
oyalties (%) 1
Mining Losses (%) 2
Mining Dilution (%
%) 5
Salles Costs (US$/o

oz) 12.37
Mining Rate (ore mtpa)

m 12
To
otal Mining Rate (ore + waste mtpa) 32
3
includes prrocessing powerr and reagents co
osts.

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The base mining
m cost of
o $2.44/tonn
ne includes th
he indirect annd direct cosst of mining in-situ rock. This
cost was obtained from quotes fro
om STRACO
ON GYM Miining Contractors who ccurrently havve an
alliance contract at Tahoes La Arena gold mine. It also includded a sustaining cost of $00.68 per tonne for
pad constrruction costs and a pit dew
watering cost of $0.03/ton ne of rock.
The processing, G&A an

nd refining co
osts are based
d on actual co
osts experiennced at Tahoees La Arena mine
and proceessing test work
w conduccted by Tah
hoe to betteer define m
metal recoverries and reaagent
consumptio
on. Shahuind
do processingg costs are expected
e to be slightly hhigher than LLa Arena duue to
increased reagent
r consu
umption. Thee reagent con
nsumption esttimate is baseed on leach column test w
work.
15.4 Dilution
D
The resou
urce model was
w created using
u 3-dimen
nsional minerralized domaains to confinne the estimaation
reporting grade
g and prroportion of each block within the vaarious domains. The do
omains were then
diluted bacck to the blo
ock size based
d on the con
ntribution of each domainn to the blocck. The reso
ource
model con
ntains block dimensions
d off 8m long byy 4m wide byy 8m high. T
The 8m blockk length is aligned
with the geeneral north-w
west to south
h-east trend of
o the deposiit to better reeflect the minneralization trrend.
A dilution of 5% at zeero grade and
d an ore losss of 2% has been appliedd as Tahoe believes thatt this
representss an appropriate amount of dilution fo
or statementt of Mineral Reserves based on operrating
experiencee at La Arena.
15.5 Pit
P Optim
mization
The optim
mized econom
mic pit shells selected for the basis off open pit deesigns were ccreated usingg the
GEOVIA Whittle
W so
oftware packkage. Whitttle is a weell-known co
ommercial prroduct that uses
geologic, mining,
m metallu
urgical and ecconomic inpu
uts to determ ine the pit shhell with the hhighest net vaalue.
The optimization used economic paarameters forr various minning and proccessing scenarrios to definee the
best operaating scenario
o for the pro
oject that creeated the mo
ost value. The pit optimization used only
Measured and Indicated
d Resources for processin
ng. All Inferrred material was consideered to be w
waste.
The Minerral Resource contained
c no
o sulfide classiified as Meas ured or Indiccated Resources; thereforre, all
sulfide matterial within the
t pit was claassified as waaste.
The optim
mization was completed
c to
o provide thee best econo
omical pit sizze. A pit phasing strategy was
developed based on mining
m smallerr pits inside the optimal pit shell to produce a sttarter pit and
d six
subsequentt mining phasses.

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15.6 Pit
P Optim
mization Results
R
The inputss for the Wh

hittle pit optiimization were based on the criteria listed in Tabble 15.3-1. U
Using
GEOVIA Whittle,
W a series
s of nestted pit shells were generaated by applyying a range o
of revenue facctors
(selling pricce) to the optimization process.
The pushbacks were selected from the

t generated
d pit shells co
onsidering thee following criteria:
Siggnificant increeases in wastee (step changee).
Th
he pushback would
w allow an
a operationaal/practical be nch to be gennerated.
The pushbacks selected mal shell (i.e., final

d were pit sheells 5, 10, 15,, 20, and 36. The selectionn of the optim
shell) for the pit design considered value
v and riskk. The pit sheell selected haad an NPV off $512 millionn (pit
shell 36). This shell was selected as it had a reveenue factor off one at a golld cut-off grad
de of 0.18 g/tt and
processed 36,000 tonnees per day.
The GEOV
VIA Whittle
results for pit
p shells exam
mined are sho
own in Figuree 15.6-1.
Figurre 15.6-1 Graph

G of Whi ttle Results

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Table 15.6-1 illustratess Best Case, Specified
S Casse and Worstt Case for pitt shells 5, 10,, 15, 20 and 336 in
terms of NPV,
N ore tonn
nes, waste ton
nnes and otheer pertinent iinformation.
Table
T 15.6-1 Pit Size vss Value
Orre Au Au Ag Ag
g Waste Total
Au
A Price Ag
g Price S
Strip
Pit Tonnes Grade Ounces G
Grade Ouncces Tonnes Tonnes
($/oz) ($/oz) R
Ratio
(000
0s) (g/t) (000s) (g/t) (000
0s) (000s) (000s)
5 456 5.7 4,48
84 1.3 188 11.44 1,6550 6,118 10,601 1.36
10 576 7.2 10,6

652 1.04 357 10.24 3,4008 15,883 26,535 1.49
15 696 8.7 33,5

554 0.81 869 8.42 8,7771 52,969 86,523 1.58
20 816 10.2 53,119 0.71 1,208 8.03 13,5667 75,258 128,378 1.42
36 1200 15 115,4
404 0.54 1,995 7 25,7888 142,489 257,893 1.23
Best Specified Worst Best Best Wo orst

Best Ore Sp
pecified
Discounted Discounted Discountedd Waste Mine Mine
Pit Tonnes Miine Life
Cash Flow Cash Flow Cash Floww Tonnes Life L
Life
(000s) (y
years)
($000s) ($000s) ($000s) (000s) (years) (ye
ears)
5 130,891 128,299 130,396 6,674 3,927 1.6 2 1..57
10 211,141 208,204 208,214 14,888 11,647 2.46 3 2..42
15 388,877 386,575 377,578 47,128 39,395 4.92 4.88 4..92
20 463,925 460,976 437,613 67,786 60,591 6.49 6.45 6..56
36 519,330 512,607 441,315 115,385 142,508 10.27 10.35 100.35
The optim
mal shell chossen (pit 36) used a gold price of $1,2200 per ounce and contaained 115 million
tonnes of ore. Material classified as Inferred Mineral Resourcces were usedd to define thhe pit size, ass this
material prresents an op
pportunity, bu
ut Inferred Mineral
M Resou rces were no
ot included inn the reportinng of
Mineral Reeserves or used in the evaaluation of thee mineral eco
onomics. Pit shell 36 wass the basis forr the
final mine design of thee pit and infrrastructure; a larger $2,0000 per ouncee gold pit shell was used as a
boundary to ensure that
t potentiaal long term resources w
were not stterilized. Figuure 15.6-2 is an
illustration of the ultimaate pit shell 36.

Pagee175
SShahuindo Mine, Peeru

NNI 43-101 Technical Report

2A
Fig
gure 15.6-2 Pla
an of Whittle Shell 36

Pagee176
1
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

16.0 MINING
M METHO
ODS
Tahoes Sh
hahuindo minee consists of an open pit mine
m and pro cessing facilitty that is currrently in the sstart-
up and com
mmissioning stage.
s The open pit will be
b mined in a sequence off phased cutbacks. The m
mining
method ussed is a con
nventional drrill, blast, sho
ovel and dum
mp truck opperation. Thhe mining will be
executed under an alliance style contract
c simiilar to mininng operationss at Tahoes La Arena m
mine.
Mining will be carried out
o on two 12
2 hour shifts, operating 7 ddays a week.
16.1 Geotechn
G ical
Tahoe com
mmissioned Anddes
A to conduct a geoteechnical revieew and slopee angle designn for the opeen pit
(Anddes, 2015d).
2 The final version of the reporrt was submittted in October 2015. Thhe Anddes reeport
consisted of a review
w of the sttudies provid
ded by Goldder and Asssociates (2012), and furrther
ndations weree made for th
recommen he slope paraameters of thhe Shahuindo mine. The rrecommendattions
made by Anddes
A are in
ncluded in Table 16.1-1, an
nd were baseed on the maaterial strengtth propertiess and
structures within the seector and the depth of thee sector.
Table
T 16.1-1 Anddes and Associatess Geotechnic al Paramete
er Recommen
ndations
Geotechnical
G Bench Benchh Maaximum Maximum Ov
verall Inter
Sector Height (m
m) Width (m)
( Batterr Angle () Ramp An
ngle ()
Zone 1 8 8 63 33
Zone 2 8 8 55 30
Zone 2 8 8 55 30
Zone 2A 8 8 45 24
Zone 3 8 8 75 37
Zone 3A 8 8 58 31
The averaage Rock Maass Rating (R

RMR) (Bieniaawski, 1976) ranges from
m 23 to 44 from test w
work
conducted on 12 geoteechnical holes (fair to poo
or rock masss quality), 400 to 53 for the intrusive units
(fair) and 29
2 to 40 for the breccias (poor). Rock mass shearr strengths w
were evaluated using the ssemi-
empirical Hoek-Brown
H failure criterrion (2002), which
w can in corporate vaarying levels of disturbancce to
the rock mass
m caused by mining. The were evaluatted based onn the
T shear strrength of disscontinuities w
results of laboratory direct shear testing, in
ndirect or s ubjective meeasurements of discontinuity
characterisstics, and enggineering judggment based on Anddes eexperience inn similar rockk masses at o
other
large open pit mining prrojects.
bility analysees included kinematic assessments

Slope stab a based on tthe structurral mapping and
core/boreh
hole logging data,
d and subssequent deep
p-seated limit equilibrium aanalyses of thhe inter rampp and

Pagee177
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
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overall pit slopes to vaalidate the kin
nematic bencch and inter rramp designss and evaluatee the influencce of
the rock mass
m competency, discrete fault zoness, groundwateer pressures and the posssible influencce of
shear stren
ngth.
The pit co
onfiguration proposed
p by Anddes was used in thee pit optimizaation processs. However,, this
model onlyy calculated the
t inter-ram
mp angle whicch does not include rampp accesses. T
The overall sslope
angle used
d for the optimization at the
t Shahuind
do mine was 28 degrees. This was shhallower thann the
recommen
ndation of An
nddes, as allo
owance was made to incllude ramp acccess and forr the topograaphic
terrain varriability. For the mine design of the Shahuindo minne, the recom
mmendationss of Anddes w
were
used and are
a included in
n Table 16.1-2, and Figure 16.1-1.
The Shahu
uindo open pit falls within
n Zone 3 of the Peru Seiismic zoning. According to this zone, the
Shahuindo mine must adhere to th
he Standard E.030
E earthq uake resistannt design of National Buiilding
Regulations (2006). Th
his standard accounts forr the high sseismicity witth a factor zone (Z) of 0.4.
According to the historrical information collected by Silgado (11978), an area close to thee Shahuindo mine
has record
ded earthquakkes of VI inten
nsities in the modified Merrcallie Scale.
Probabilistic analysis haas determined

d the maximu
um accelerati on for Shahuuindo is 0.17 m/s2 for a onne in
100 year event
e with a 10% chance of
o exceeding within 50 yeears. A value of 0.085 m/ss2 within a onne in
100 year event has been
n factored intto the design of slopes.
Table 16.1--2 Shahuin

ndo Geotech
hnical Parame
eters
Opttimisation Mine Desig
gn
Bench Bench Width
W Ove
erall Slope Maximum B Batter M
Maximum Ove erall
Area
Height (m
m) (m)) Angle () Angle (() Slope Angle (()
Zone 1 8 8 28 63 33
Zone 2 8 8 28 55 30
Zone 2 8 8 28 55 30
Zone 2A 8 8 28 45 24
Zone 3 8 8 28 75 37
Zone 3A 8 8 28 58 31

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Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
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Figurre 16.1-1 Geotechnical Z

Zone Areas
16.2 Hydrogeo
H ology and Hydrolog
gy
In October 2012, Ausenco Vector (Ausenco) delivered a techhnical memorrandum of the hydrogeolo
ogical
studies thaat were con
nducted durin
ng March 20
012 through Oct 2012 ((Ausenco, 20012). The reeport
involved a program off fieldwork drill
d holes and piezometters, hydrogeeological characterization and
numerical modeling of the phases within
w the pitt in natural ccondition andd after miningg was compleeted.
omes of the report
The outco r also took into con
nsideration thhe work com
mpleted and rrecommendeed by
Anddes and Golder Asssociates (2012
2).
W-SURFACT
MODFLOW T finite softwaare was used to model thee expected w
water flow rattes into the ppit to
be the follo
owing;
For the starter pit, the leevel of groun ndwater inteercepted slighhtly inflows of 0.9 L/s; pore
preessures are not determinaants in the pitt slope stabilitty.
For the final staage, the level of groundwatter intercepteed inflows of about 7.7 L/ss.

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Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

Montgomeery Watson Harza (MW
WH) were co
ommissioned in 2015 to
o update thee hydrologic and
hydrogeolo
ogic models for
f the Shahuindo propertty, including a site-wide waater balance, in support o
of the
modificatio
on to the existing
e EIA (Montgomeery Watson Harza, 2015). MWH eestimated annnual
precipitatio
on to be 600 mm/year in the
t upper eleevations of thhe project areea and up to 1,400 mm/yeear in
the lower parts of the valleys. MHW
W determineed that the w
water table w
was on averagge 45m below
w the
ough in topoggraphic extreemes the deptth varied from
surface, tho m 1.1m to 1889m below suurface.
MWH iden
ntified 11 hyd
drogeologicall units which were includded in their m
model. Two types of aquuifers
were identtified; the firstt is in the co--alluvial and alluvial
a unconssolidated matterial lying onn bedrock and
d the
second in fractured rock material, principally th mation, whichh is the best host
he Chimu sanndstone form
rock for a water supplyy.
ojected groun
Annual pro ndwater inflow
ws into pit ovver the life off mine are listted in Table 116.2-1.
Table 16.2-1
1 Predicted Water Infl ows during M
Mining
Projecteed Inflow
Year
LL/s
1 0
2 0
3 1
4 12
5 17
6 17
7 16
8 15
9 12
10 18
11 (post-mining)) 220
12 (post-mining)) 225
Water inflows during mining

m will bee controlled via of in-pit sumpps and dewateering pumps with
v the use o
water routted to holdingg ponds for use
u in processsing. It is likeely all of this w
water will be consumed byy the
process faccilities in the dry season, but a portio
on will requirre treatment prior to disccharge duringg the
wet season
n.

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Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

16.3 Mine
M Layo
out
The open pit designs arre based on an

a optimized pit shell follo
owed by a dettailed design and developm
ment
of phased plans. Geoteechnical parameters and recommendeed pit slopes are outlined
d in Section 16.1.
wing criteria were
The follow w used forr the open pitt design:
The designs employ a minimum cutback width

w of 25m..
The haul roads were designeed at 27m, (2
23m operatio
onal width pluus 4m for berrms and drainnage)
to allow for tw
wo-way safe passage
p of thee 90 tonne ccapacity haul trucks that hhave an operrating
wid
dth of 6.1m. Single lane ramps
r were used
u at the bbase of the piit with a widtth of 14m onn the
lastt 4 benches.
Maaximum centeer line haul road gradient of 10%. Forr sections of the haul roaad that may ccurve
alo
ong the outsid
de of the pit, the inside graadient of the ramp has a m
maximum grad
dient of 11-122%.
The open pit at Shahuin

ndo contains eight phases. The cutbackks have been designed connsidering the best
ramp posittions, pit acceess, geotechn
nical recomm
mendations annd overall vollume. The sttages of the o
open
pit are dessigned to smo
ooth the tonn
nage movemeent per periodd, starting witth small startter pits withinn the
overall finaal pit footprin
nt. The phasees are mined in order fro m Pit 0 to Piit 8. The highest elevationn for
the Shahuindo pit is 3,154 mRL and
d the deepestt component is 2,696 mRL. The higheest pit wall of the
70m in heightt.
design is 27
The mine waste

w facilitiees have been designed
d as a two stage faccility consisting of:
Staarter waste dump used forr the waste material

m until pperiod 2018.
Maain waste dum
mp constructeed out of the waste from tthe starter pit.
20Mt of waste is
i planned to backfill the Northern
N Phaase 6 area of tthe open pit, or alternativvely a
w waste faciliity in the nortthwest valleyy will be includded later in the mine life.
new
The locatio
on of the dum n located closse to the pitss to minimize hauling. Thee footprint o
mps has been of the
waste dum
mp has been drilled
d to ensure no steriliization of thee future resouurces. The main waste d
dump
is a valley fill dump; th
he dump and
d the under drainage
d systtem for the w
waste dump was designeed by
Anddes. The
T overall slo
ope of the waaste dump waas designed att 2.5:1 (horizontal: verticaal).
The wastee dump will be

b constructeed in 10m liftts working fro
om the botto
om up. The first stage off the
waste dum
mp has a capaacity of 20Mtt and the maain waste du mp has a cappacity of 1000Mt. The staarter
waste dum
mp was design
ned to minim
mize the capital expenditurre at the starrt of the projject. Table 166.3-1
outlines th
he waste dum
mp capacities that
t includes the main andd starter wasste dump voluumes. The w
waste

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Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

is assumed
d to have an average bulkk density of 1.75 tonnes/ m3; this includes a swelll and compacction
factor of waste
w to be ap
pproximately 1.3 or an inccrease of 30%
% of the originnal volume.
Initially som
me waste will be used to build
b and or widen
w haul ro
oads and som
me good qualiity waste matterial
is also scheeduled for thee constructio
on of the life of
o mine leach pad base.
Tab
ble 16.3-1 Waste
W Dump
p Volumes
To
op Bottom
B Volume Capacitty
Waste Du
ump
Elevation Elevation
E (m3) (t)
StarterWasste 26
650 2830 11,692,400 20,461,7000
MainWaste
e 25
540 2910 58,287,500 102,003,200
Total 69,979,900 122,464,900
Two suitab
ble locations in valleys to the northweest and southhwest of the pit were connsidered for lleach
pad constrruction. The southwest vaalley was cho
osen as the finnal location fo
or the Phase 2 LOM leachh pad
due to no restrictions on
o land owneership as per the waste duump area, annd proximity tto the processing
plant. Geottechnical inveestigations byy Anddes show
w the area is suitable for tthe leach pad
d. At the effeective
date of this report, the designs are well
w advanced
d by Anddes with detailedd engineering in progress. The
Phase 1 leach pad locattions were chosen on areeas amenablee to easy connstruction witth minimal caapital
expenditurre, and allow
w for gravity feed to the process plannt. The Phasse 1 leach ppads have a sshort
constructio
on time and low
l capital ex
xpenditure; this
t allowed a short lead ttime to first pproduction att the
Shahuindo Mine.
The mine site

s layout haas been designed taking intto considerattion the futurre expansion of the Shahuuindo
open pit and infrastructture so no stterilization will
w occur in tthe upcomingg projects. Thhe final layout for
the Shahuindo open pitt is presented
d in Figure 16
6.3-1. This layyout is considdered to be thhe final layouut for
the projectt.

Pagee182
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

2A
Figure 16.3-1 Sha

ahuindo Mine
e Layout Plan
n
16.4 Mining
M
The Shahu
uindo mine haas been plann
ned as an open pit truck and shovel aand excavatorr operation. The
convention
nal truck and
d loading unitt method pro
ovides reasonnable cost beenefits and sselectivity forr this
type of dep
posit. Only open
o pit minin
ng methods are
a consideredd for mining aat Shahuindo.
Mining of the
t Shahuindo
o open pit is to be condu
ucted under aan alliance agrreement withh local contraactor
STRACON
N GyM. The material at Shahuindo will
w be drilled and blasted o
on 8m benchhes, using 1566mm
diameter blast
b holes and a powder factor
f of 0.25
5 0.20 kg/BC
CM. Loadingg of ore and w
waste will be with
diesel pow
wered excavattors and rigid
d frame dump
p trucks. Thee ore will be hauled to thee dump leachh pad
or crusherr, with the waaste hauled to
o the waste dump.
It is expectted that the drill penetrattion rate will be consistennt between orre and wastee. In additionn, the
deeper ben
nches do nott show any ch
hanges in thee mechanical properties o
of the rock m
mass with onlyy the
oxide zonee being mined
d. Blasting parameters were chosen byy the mining ccontractor affter reviewingg the
rock properties. The unconfined
u compressive strength
s (UC
CS) varies fro
om 16 MPa in high alteraation
areas up to
t 120 MPa in the bedro
ock. The aveerage penetraation rate is 40 m/h which approximately
correspond
ds to a UCSS of 32 MPa. Table 16.4
4-1 shows th e drilling andd blasting paarameters forr the
Shahuindo open pit.

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Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
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Table 16.4--1 Drill and Blast Tech
hnical Parameters
Drillin
ng Parameterr Units Ore Waste Rock
k
Hole Diam
meter mm
m 156 156
Drilling Pattern Burden/Sp

pacing (m) 4.78 / 5.5 5.22 / 6
Bench Heeight - Nominal Metters 8 8
- Operativee Metters 9-10 9-10
Sub Drilling Metters 0.8 0.8
Re-Drillin
ng % To
otal 2.70% 2.70%
Penetratio
on Rate m/hr 40 40
Powder Factor
F kg/B
BCM 0.25 0.20
An unsensitized gassablle bulk emulssion matrix iss the primaryy explosive ussed for blastiing. The emulsion
matrix is shipped
s as an
n oxidizer and
d must be seensitized withh a chemical ggassing technnology to beccome
detonable prior to use.. This producct is being succcessfully useed at Tahoess La Arena m
mine, producinng an
acceptable rock size disstribution afteer blasting du
ue to high sho
ock energy pproduced. Thee logistics forr this
product arre already in place
p at the mine
m site. Inittiation will bee by non-electtric detonato
ors using cord
d and
surface dellays to contro
ol the initiatio
on sequence to
t produce go
ood fragmenttation.
The Shahuindo mine will operate wiith an over-trrucking modeel which meaans that the pproduction will be
limited by the
t loading fleet, rather th
han by truck availability.
a
The runnin
ng surface on
n the haul ro
oads of 23m width has bbeen designedd using threee times the ttruck
width follo
owing internattional operational practicees and Peruviaan safety reguulations. Single-lane haul rroads
of 14m wid
dth were inco
orporated in the bottom four benchess of the pit to
o maximize o
ore recovery. The
designed haul roads include two 0.5m
m drains on each
e side of thhe ramp and one additional safety berm
m.
un of mine du
For the ru ump, limited leach blendin
ng will be re quired for so
ome softer m
materials. A bblend
ratio of 2:1 (two coarsee ore to one fine ore) will be employeed as a minim
mum where reequired to ennsure
no permeaability problem
ms arise.
After 2018
8, the crushingg and agglomeration plant will be comm
missioned witth no restricttions on blend
ding.
Tahoe will mine the Sh

hahuindo open pit using th
he same miniing method aas the La Areena mine. Thhe La
Arena mine has been used
u as the basis for the mining
m metho
od, operationnal structure and machinery at
Shahuindo,, as it represeents the best value for thee project. Thee Shahuindo mine will also
o utilize the ssame
mining con
ntractor as the
t La Arenaa mine; STRA
ACOM GyM
M has alreadyy started opeeration undeer an
alliance agrreement.

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Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

16.5 Pit
P Design
n
16.5.1 Bench
B Heig
ght
Pit designs were createed to use 8m benches for mining. This correspondss to the resource model bblock
hich Tahoe beelieves to be reasonable with
heights wh w respect to dilution aand equipmennt size anticippated
to be used in mining.
16.5.2 Final
F Pit De
esign
The final ultimate open pit design forr the Shahuindo deposit iss illustrated inn Figure 16.5--1.
16.5.3 Comparison
C n of Final Pit
P Design to
t the Opttimum Wh
hittle shell
A comparison between
n the LOM pit design an
nd the Whitttle optimizattion was com
mpleted withh the
results illusstrated in Taable 16.5-1. There
T was a total differennce of about one percent when compaaring
the design to the chosen Whittle sheell (shell 36). The differennce is attributted to the following factorrs;
Slo
ope parameteers in the dessign incorporaated individuaal geotechniccal sectors, w
where the Whhittle
optimization asssumed an oveerall slope anggle of 28 degrrees.
Waste tonnes were increassed slightly due to the deesign which iincluded the life of mine haul
roaads while maiintaining the minimum
m min
ning width.
Arreas that weree below the minimum
m min
ning width or deemed nott mineable at this point of time
weere omitted from
f the dessign. Further drilling mayy define thesse areas as m
mineable into
o the
futture.
Table
T 16.5-1 Compariso
on of Pit Dessign to Whitttle Shell
Item Differe
ence
Ore tonnes 97%

%
Au grade 99%
%
Ag grade 99%
%
Au ounces 96%
%
Ag ounces 96%
%
Waste tonnes 105%

%
Total tonnes 101%

%

Pagee185


2A
Figure 16.5-1 LOM Pit Desig

gn

Pagge186
1

port

16.6 In-pit
I Infe
erred Ressources
Inferred Mineral
M Resou
urces inside the
t pit total 1.9 million to
onnes with avverage gradess of 0.50 g/t A
Au
and 8.77 g/t Ag. Whiile Inferred Mineral
M Resou
urces were cconsidered ass waste and nnot used in tthe
economicc analysis, successful convversion to either
e Measu red or Indiccated classificcations throuugh
further drilling would result in an
n increase off approximateely 30,000 o
ounces of gold and 530,0000
ounces off silver to thee life of mine production
p to
otals.
16.7 Mine
M Production Schedule
S
The minin
ng strategy att Shahuindo consists
c of tw
wo phases: PPhase 1entailss mining higheer-grade startter
pits and delivering
d the ore to the tw
wo Phase 1 leeach pads (pa ds 1A and 2A
A) for ROM leeaching. Phaase
2 includess the addition
n of a crushingg and agglomeeration proceess facility, a llarge leach paad (pad 2b), aand
mining thee remainder of
o the deposit at a higher rate.
16.7.1 Initial
I Mining Strateg
gy: Phase 1
The shortt term strateegy for the mining operation at Shahuinndo will com
mmence with the mining o
of a
smaller op
peration thatt does not incclude crushin
ng and agglom
meration. The smaller opeeration consists
of mining small starterr pits that will have a duraation of appro
oximately 27 months and two leach paads
with a combined capaccity of 11.5 million
m tonness. The initial strategy wass designed to take advantaage
of the near-surface
n coarse-grain sandstone-h
hosted ore w
which does not requiree crushing aand
agglomeraation.
The initial starter pit is located in a sandstone dominant

d loc ation at the ssouthern end
d of the final pit
design, located close to
t the leach pads. Fine-grained high-ggrade ore fro
om the northern starter ppits
will be blended with sandstone
s and
d placed on the top lift o
of the Phase 1 leach pads. Good quallity
waste matterial and verry low grade ore from thee initial starteer pit will be used for consstruction of tthe
heap leacch Phase 2b pad buttresss and other leach pad faccilities. Currrently, it is aanticipated thhat
approximately 4 million tonnes of fill
f material will
w be requireed for the construction off the heap leaach
pad Phasee 2b. The staarter pit has a mine life of 2.25 years; thhis will enablee time for furrther processing
blending tests
t to be co
ompleted forr the Phase 2 leach pad w
with revenue ffrom the starrter pit used to
assist with
h the capital expenditure
e for
f the larger heap leach o
operation (Phase 2).
The locattion of the sttarter pits an

nd the develo
opment of thee Phase 1 leaach pads is sshown in Figuure
16.7-1. Construction
C of the Phasee 1 leach pad
d (pad 1A) aand process ffacilities commenced in M
May
2015 and were complete in November 2015. Mining of thhe starter pitt commenced
d in Novembber
2015 utiliizing 75 tonn
ne excavatorss and 35 ton
nne tip truckks. An averaage of approxximately 28,0000
tonnes peer day (ore an
nd waste) willl be mined in Phase 1.

Page1187

port

2A
Figure 16.7-1 Site

e Plan at the end of 2017
16.7.2 Mining
M Stra
ategy: Pha
ase 2
The minin
ng strategy fo
or Phase 2 will include a crushing
c and agglomeratio
on processing facility and tthe
Phase 2 leeach pad (pad 2B). This facility and leeach pad is sccheduled to be constructted during 20016
and 2017, ready for production
p att the start off 2018. Phasse 2 includes an increase in total tonnnes
om 28,000 to
mined fro onnes per dayy in Phase 1 to a maximuum of 89,0000 tonnes per day, which w
will
require an
n upgrade to
o a larger sizeed fleet. Thee Phase 2 leaach pad will pprocess a maaximum of 133.1
million tonnes of ore per
p year. Thee Phase 2 sitee layout plan iis included in Figure 16.7-22.

Page1188

port

2A
Figu
ure 16.7-2 Final
F Phase 2 Site Plan
Phase 2 in
ncludes a sto
ockpile locateed close to th
he crushing aand agglomerration facility. The stockppile
capacity is
i about 8 million
m tonnees of ore. This stockpi le is used to
o smooth thhe mining fleeet
requiremeents, to max
ximize the productivity
p of
o the mininng equipmentt to reduce costs, and ffor
blending and
a optimizattion of ore grrades to the pad.
p
16.7.3 Mining
M Sch
hedule
The minin
ng schedule fo
or Phase 1 was
w developed
d using Gemccom MineScheed softwarre consideringg a
maximum
m fleet capacitty of 28,000 tonnes per day.
d The Phaase 1 ore prroduction was driven by tthe
space available on the leach pad and
d the amountt of near-surfaace high-grade sandstone-hosted ore.
ng schedule for
The minin f Phase 2 was
w developed using the M
MineMax o
open pit scheeduling softwaare
which maaximizes the NPV
N using lin
near program
mming. The PPhase 2 mininng schedule w
was constrainned
by three loading unitss with a max
ximum total capacity of 990,000 dry ttonnes per year and by tthe
crushing and
a agglomeration facility which
w has a maximum
m cappacity of 36,0000 tonnes per day.

Page1189

port

The wastee material is hauled to the waste dum
mp as previou sly describedd in Section166.3. The oree is
hauled to
o either a low
w-grade stockkpile or to th
he crusher ppad where trrucks can direect tip into tthe
crusher feeed bin, which has a live capacity of 24
40 tonnes. A track feederr feeds the maaterial from tthe
crusher feeed bin to a Mining Machinery Devellopments (M MD) sizer thhat crushes tthe ore to 800%
passing 10
00mm. At th
he end of the open pit min
ne life, the maaterial in the low-grade sttockpiles will be
loaded intto trucks at the stockpiles and rehandleed to the cru sher bin.
The geocchemical characterization study descrribed in Secttion 20.0 haas been imported into tthe
geologicall model used by the mine planning enggineers. The ddistribution o
of potentially acid generating
(PAG) material in thee model is in
ncluded in th
he mine sch edule to enssure that it is mined at an
appropriaate time to alllow the matterial to be encapsulated aat the destination and no
ot be in contaact
with the elements.
e Infformation fro
om blast hole samples will also be usedd to improve the accuracyy of
the modeel as mining taakes place.
The mine production schedules

s forr the Shahuind
do mine are ssummarized iin Table 16.77-1. The tonnnes
are reporrted in-situ drry tonnes afteer applying 2%
% ore losses aand a 5% diluttion factor.
Table 16.7-1 Min

ne Productio
on Schedule
Un
nit 2016 201
17 20 18 20
019 20
020 202
21
Ore Tonnes k tonnnes 5,75
56 5,60
02 10,2289 13,,412 13,039 12,3352
Au Grade g//t 0.68
8 0.5
54 0.664 0..48 00.48 0.551
Ag Grade g//t 5.95
5 5.7
73 7.224 6..45 77.05 6.447
Waste Tonnes k tonnnes 4,95
54 4,113 21,8835 18,,895 199,246 19,8893
Strip Ratio
o waste::ore 0.86
6 0.7
73 2. 12 1..41 1.48 1.661
Total Tonnes k ton
nnes 10,710 9,715 32, 124 32,,306 32,285 32,2
245
Au Mined
d k oz
o 126
6 97
7 2112 206 2200 2001
Ag Mined k oz
o 905
5 1,09
90 2,5524 2,7741 2,954 2,568
Un
nit 2022 202
23 20 24 20
025 To
otal
Ore Tonn
nes k tonnnes 16,06
66 14,4
405 12,7732 7,2236 110
0,890
Au Gradee g//t 0.50
0 0.5
59 0.552 0..49 0.53
Ag Gradee g//t 7.79
9 7.16 6.336 7..30 6.86
Waste Tonnes k tonnnes 16,39
95 15,9
922 17,4497 11,,106 149
9,855
Strip Ratio
o waste::ore 1.02
2 1.11 1.337 1..53 1.35
Total Tonnes k ton
nnes 32,46
61 30,3
327 30,2
230 18,,342 260
0,485
Au Mined
d k oz
o 258
8 273 2115 113 1,900
Ag Mined k oz
o 3,59
99 3,14
43 2,6663 2,2246 24,470
*Note: The total
t material movved and grades aree slightly different (~1%) to the Minneral Reserve in Seection 15.0 due to
o rounding differennces
between softw
ware packages.

Page1190

port

16.8 Mining
M Eq
quipmentt
Phase 1 mining
m will usee a smaller mining
m fleet an
nd no crushin g and agglom
meration circuuit. Phase 2 w
will
include a crushing and agglomeratio
on circuit coupled with an upsized mininng fleet.
The mobiile equipmentt selection was

w conducted
d by anticipatting the fleet requirementts that could be
used in th
he open pit operation. Thee Phase 1 min
ning fleet incluudes a CAT 3374 excavato
or matched w
with
a fleet of 35 tonne 8 x 4 tip trucks. Phase 1 min
ning assumes an average raate of 28,000 tonnes per d
day
(ore and waste). The Phase 2 mining fleet includes RH900 sshovels matchhed with a fleeet of 90 tonnne
Caterpillaar rigid framee haul trucks. Phase 2 mining
m assumees an averagee production rate of 87,0000
tonnes peer day (ore an
nd waste).
Table 16.8
8-1 shows thee size of machinery that will
w be requireed at each staage of pit development. Only
primary equipment
e uniits are listed.
Table 16.8-1 Primary Mining

g Equipment Required forr Shahuindo
Min
ning Phase Primary Mining Equipm
ment Quantity
Ex
xcavator CAT 374
3 2
32
2 Tonne Actros Tip Truck (maxximum) 11
Phase 1
Saandvik D245 Drrills 1
Dozer
D (Track and
d Wheel) 2
RH90
R Shovel 3
90
0 Tonne CAT 777D Haul Truckks (maximum) 34
Phase 2
Saandvik D245 Drrill 3
Dozer
D (Track and
d Wheel) 3
A general overview off the ancillary equipment needed

n for thhe productionn stages of miining is outlinned
in Table 16.8-2.

Page1191

port

Table 16
6.8-2 Ancilllary Equipm ent Fleet Sizze
Equip
pment 2015 2016 2017 2018 2019
2 2020 2021 2022 2023 2024
4 2025 202
26
Tractor CAT
C D8T 1 2 2 2 2 2 2 2 2 2 2 2
Tractor CAT
C 834 1 1 1 1 1 1 1 1 1 1 1 1
Grader CA
AT 16M 0 1 1 1 1 1 1 1 1 1 1 1
Grader CA
AT 14M 1 1 1 1 1 1 1 1 1 1 1 1
Water Trruck 1 1 1 2 2 2 2 2 2 2 2 2
Fuel Truck 1 1 1 2 2 2 2 2 2 2 2 2
Lube Trucck 1 1 1 2 2 2 2 2 2 2 2 2
Excavatorr CAT 374 1 1 1 1 1 1 1 1 1 1 1 1
The ramp
p up from Ph
hase 1 to Phaase 2 will req
quire a fleet change out o
over a six m
month period to
reach full implementation. This ram
mp up has beeen included inn the mining sschedule.
The mob
bile equipmen
nt selection was conductted by anticiipating the ffleet requirem
ments, the kkey
parameters used for the
t calculatio
on of fleet req
quirements aare based on scheduled tiime, availabiliity,
truck and material parameters, and is included in
n Table 16.8--3. Mining wiill be conductted by the sam
me
or, STRACON
contracto N GyM, utilizzed at Tahoees La Arena mine under an alliance aggreement. T
The
mining eq
quipment utilized at La Arrena is very similar
s to thee proposed m
mining fleet att the Shahuinndo
mine. The data for thee mining prod
ductivities and
d costs were based on thee La Arena mine.
Table
T 16.8-3 Maximum
m Loader Pro
oductivity Esttimate
ST
TRACON GyM
M Digging Production Units Caterpillar 3
374 RH9
90C
Avvailability % 88 888
Uttilization of Available Time % 83 883
Ho
ours/Day hours 17.53 177.6
Prroductivity tonnne (wet)/hour 825 1,6650
Mo
oisture Contentt % 4 4
Daaily Production tonnne (wet)/day 14,462 290040
Daaily Production tonnne (dry/day 13,906 279923
Ye
early Productiion per Diggin
ng Unit Mtpa 5.08 11.9
Truck pro
oductivity is based on hau
ulage routes and travel sppeeds. The haulage routtes were draw
wn
from the pit designs to each of thee potential destinations. Additional haaulage lines w
were drawn ffor

Page1192

port

each bencch within the pit designs. The speeds were flagged into the hauulage string deescription fields
based on location and haul gradientt.
GEOVIA MineSched
and Maptekk Vulcan so
oftware weree used to calcculate the truuck hours bassed
on assigned speeds fo
or loaded and
d empty truccks along eac h of the hauul routes. Reesulting haulaage
strings weere drawn byy GEOVIA MineSched
M and
a verified tto ensure pro
oper routing of haulage w
was
followed.
The availaable hours per day were adjusted by mechanical aavailability annd operator efficiency. T
The
mechanicaal availabilitiees start at 88%
%, the operator efficiencyy or utilizatio
on factor used
d is 83%, which
accounts for break tim
mes, lunches, and
a shift startt-ups and shuut downs.
Sandvik D245s
D drills were selected for blast hole and aassay drilling. These drills provide tthe
productivvity required for production at a low unit cost peer meter drillling up to ann 8 meter high
bench usiing single passs drilling. Other
O equipm
ment selectedd for supportt functions inncluding dozeers,
graders, water
w trucks and
a other misscellaneous equipment.
e

Page1193

port

17.0 RECOVE
R ERY MET
THODS
The Shah
huindo Project will be developed
d in two phases . During PPhase 1 (years 20162017),
acceptablee recoveries are achievable from ROM
M ore direct ffrom the minne to the heaap leach pad. In
Phase 2 (2018
( through the end off the mine liffe), ore will bbe crushed aand agglomeraated to achieeve
increased recoveries, acceptable
a peercolation, and pad stabilityy over the lifee of mine.
The Phasee 1 pilot leach

h pad (pad 1A
A) has an areaa of 18 Ha; a second pad ((pad 2A) will be constructted
in 2016 to
o be ready to
o receive maaterial in 2017
7. The adsorrption-desorpption-refining (ADR) proceess
plant capaacity has been
n initially designed to treaat 10,000 ton nes of ore peer day and w
will be expand
ded
to processs an average of 12,200 to
onnes of ore per day in 20016 and 16,500 tonnes off ore per dayy in
2017. The pilot pad and 10,000 tpd ADR plant
p have b een completted, with co
ommissioning in
Decembeer 2015.
For Phasee 2, the crushing, storage, agglomeration and stackinng system, andd ADR plant are designed to
handle 36
6,000 dry ton
nnes per day. Cement (up to 6 kg/tonnne) and lime (around 2 kgg/tonne) will be
added to the crushed ore
o and the mixture
m agglo
omerated at t hree speciallyy designed traansfer points by
the addition of a barreen solution (o
or water). The agglomeraated ore will be delivered to the Phasee 2
d (pad 2B) by
leach pad b downhill regenerative
r overland co
onveyors. A series of staackable/shiftabble
conveyorss and grassho
opper conveyyors will delivver ore to a stacking convveyor that w
will place it onnto
the pad in
n 8 or 16 metter high lifts.
During th
he first half off 2016, Tahoee geologists will
w work to refine the geeological mod
del by additional
drilling an
nd relogging to
t aid in imp
proving the geometallurgic
g cal model to
o increase co
onfidence in tthe
proposed material bleending schemes. The geo
ometallurgical model will aalso be impro
oved with pilot
leach testting of the diff
fferent litholo
ogies at varyin
ng coarse to ffine ratios. T
The executionn plan for Phaase
2 will be finalized baseed on these test
t programs. Agglomerration recoveeries and streength test wo
ork
are ongoing at SGS in Lima and at the
t La Arena metallurgical lab.
17.1 Phase
P 1 - Run of Mine
M Proc
cessing
17.1.1 Processing
P g Flow Path
h Run of Mine
M Mate
erial
In Phase 1, gold is reccovered via dump leachingg of ROM orre, which is trrucked to thee Phase 1 leaach
pads and dumped on the leach paad to form lifts.
l The liftss are irrigateed uniformly with a sodiuum
cyanide so
olution by an
n irrigation syystem. As th
he solution ppasses througgh the lift, go
old is dissolveed,
forming a pregnant (go
old-enriched)) solution. The
T pregnant solution perccolates throuugh the lifts aand
flows into
o the solution
n pond.

Page1194

port

The pregnant solution
n is pumped from the so
olution pond to the ADR
R circuit wheere the gold
d is
recovered
d onto activated carbon. The carbon is stripped o
of gold to form
m a solution and the gold
d is
extracted by the proceess of electro
owinning to fo
orm a precipiitate. The preecipitate is drried, mixed w
with
flux and smelted to pro
oduce dor. The dor is weighed,
w mpled and shippped to a refiinery for sale.
sam
A specificc process hass been design

ned for captu
ure, condensaation and sto
orage of merccury during tthe
precipitate drying pro
ocess. The mercury
m is reemoved and disposed off by a qualiffied third party
transporter. The plant design inclu
udes retort furnace
f storaage to preveent mercury vaporization at
ambient temperatures..
Slag produced as partt of the smelting process is crushed aand any prillss of gold are recovered aand
recycled for
f smelting. Stripped carrbon is regeneerated and reecycled to thee adsorption circuit. A flo
ow
sheet of the
t ROM leacching operatio
on is illustrateed in Figure 1 7.1-1.

Page1195


Figure 17.1-1 ROM Process Flow

F Sheet

Page196
1

port

17.1.2 Run
R of Min
ne Leach Prrocess
The mineeralized material is transp
ported from the
t mine facce to the leach pad usingg dump truckks. In
order to maximize reccovery, the ROM
R ore will be blended ddirectly from the pit. Thee scheduling o
of the
ROM oree from the pitt will require input from the
t onsite meetallurgical deepartment to ensure the m
mining
blend max
ximizes the recovery
r of go
old from the ROM ore. T
The ROM orre will initiallyy be placed o
on the
leach pad at a rate 10,0
000 tpd, ramp
ping up to an average of 1 2,200 tpd in 2016 and 16,500 tpd in 20017 as
the plant capacity is ex
xpanded.
dded at the required quan

Lime is ad ntity to the leeach pads usinng the miningg fleet at the time the irriggation
pads are being formed
d. A spray irrigation sysstem is used to apply thee cyanide sollution of 2000 ppm
oncentration at 400 m3/h at to each paad lift. The vvertical height of each lift has been dessigned
cyanide co
at 8m by Anddes
A (2015
5e, 2015f, 2015h). As the solution passes through tthe heap, the solution will leach
the gold and
a silver ou
ut of the ore.. The pregnaant (gold-enrriched) solutio
on is collecteed in the preegnant
leach solu
ution (PLS) co
ollection pond
d and pumpeed by two 14--inch x 12-incch horizontall centrifugal ppumps
to a series of adsorptio
on columns.
The cyaniide for heap irrigation

i is fiirst prepared at 27% conccentration. Eight tonnes of sodium cyyanide
(NaCN) is
i added to fresh
f water in a 25m3 prreparation/aggitation tank and the conccentrated solution
transferreed via pump to
t a storage tank
t of 140m3 capacity. Thhe concentratted cyanide solution is meetered
into the barren leach solution to increase thee cyanide leveel up to 2000 ppm beforee pad irrigation. A
second cyanide prepaaration tank is located near
n the dessorption areea for gold stripping. Cyyanide
concentraation for strip
pping is 0.5%
% (5,000 ppm)). Both cyani de mixing unnits have a sccrubber, pH m
meter
and hydro
ogen cyanide detector.
The soluttion applicatio

on will advan
nce in nomin
nal 6,000m2 ccells (60m x 100m). The barren soluttion is
pumped by
b 305mm x 355mm
3 (12-in
nch x 14-inch
h) horizontal pumps. The number of puumps will graadually
be increassed as the leaching area increases acco
ording to thee ore tonnes placed. Each leach cell hhas an
irrigation system conssisting of a 200mm (8-incch) header annd four 100m
mm (4-inch) sub-headers. The
wobblers network aree a 6m x 6m
m triangle patttern with N o. 7 wobblers, 19mm (
-inch) conneection
fitting and
d low angle (18) outlets to
o minimize so
olution lossess.
The irrigaation rate is between

b 8 to
o 10 liters peer hour per ssquare meterr of leaching area. Emitterrs are
16mm ho
ose installed at
a 63cm spaccing. Each em
mitter will haandle 4 literss per hour. A
At any given time,
there willl be a minimu
um of five irrrigation systeems under leaaching conneected to sub-headers, withh two
systems on
o standby (o
one being insttalled on a neew cell with ffresh ore, andd one being d
dismantled aftter 80
days leach
hing cycle). The
T flow rate of pregnant solution to tthe collectionn pond will bee 367 m3/houur per
leaching cell
c under thee 10,000 tpd plant
p capacity scenario.

Pagge197

port

The test work
w conducted indicates that irrigating the ROM o
ore for 80 dayys is required
d. The irrigatting of
each lift fo
or the 10,000
0 tpd rate is shown in Tablle 17.1-1.
Table
e 17.1-1 Ph
hase 1 Leach Pad Schedule
Vertic
cal Lift Heightt Irrigated DDuration
Leach Pad Ph
hase 1
(meters)
( (dayys)
Lift 1 8 400
Lift 2 8 600
Lift 3 - Final Heeight 8 800
The 10,00
00 tpd ADR plant has thee capacity to
o process a ssolution rate of 400 m3/hr at the projjected
mine head
d grades and volume undeer irrigation. Diligent monnitoring of thhe leach pad w
will be requirred as
to insure potential perrmeability/chaanneling do no
ot negatively impact gold rrecovery from
m the ROM o
ore.
17.1.3 Process
P Pla
ant
Five adsorption circuitts are currenttly available for
f the treatm
ment of pregnnant solution in the ADR plant.
Each circuit consists of
o six columns containingg 4 tonnes o
of activated ccarbon. Thee activated carbon
adsorbs the gold, silveer and some minor impurrities such as mercury andd copper. Thhe columns hhave a
total treattment capacitty of 1,750 m3/h.
The carbo
on from the adsorption
a taanks, containing approximaately 4 kg of gold per tonne carbon is taken
to the desorption plan
nt where the gold is extracted from thee carbon usinng a sodium hhydroxide solution
in a desorrption reacto
or. The gold and
a silver is recovered
r thrrough electro
owinning to o
obtain a preciipitate
that is dried in the preess filters, whiich then goess through the smelting stagge to obtain tthe dor barss.
The barreen solution that

t flows fro
om the adso
orption circuiit returns to the leach circuit througgh the
barren tan
nk, and the leevel of reagen
nts is adjusted
d prior to bei ng fed back innto the proceess. The carbbon in
the adsorrption circuitt is stripped and regeneraated twice w
weekly in thee 8m3 desorpption reactorr. The
carbon reegeneration taakes place in batches in tw
wo steps:
1. accid wash everry adsorption

n cycle
2. th
hermal regeneeration everyy 3 adsorption
n cycles.
The acid wash adsorption cycle co

onsists of tho
oroughly washhing the carbbon with fresh water to eensure
that no entrainment of
o cyanide solution is preseent. It is theen washed witth hydrochlo
oric acid (HCII) at a
concentraation of 2.5%. The acid wash
w is requirred to dissolvve and removve carbon scaale; the duration of
this step, including watter rinsing, takes approxim
mately three hhours.

Pagge198

port

The therm
mal regenerattion cycle invvolves dewateering the carbbon solution on a vibratinng screen and
d then
heating th
he carbon up
p to 750C fo
or 10 to15 minutes
m in thhe regeneratio
on kiln, whicch regeneratees the
carbon. After the reegeneration kiln,
k the carb
bon is droppped into a w
water quenchhing tank at room
temperatu
ure, and is th
hen dewatered and screen
ned to removve fines (minuus 6 mesh). T
The coarse fraaction
of carbon
n (6 x 12 messh) will return back to thee adsorption circuit, whilee the fine carrbon is filtereed and
stored. The
T fine fracction weight is calculated
d to be appro
oximately 0.55 tonne of ccarbon per m
month
dependingg on the qualiity of the carb
bon.
17.2 Phase
P 2 Crushing
g and Agg
glomerattion
17.2.1 Process
P an
nd Flow Patth
For Phasee 2, the ROM
M material willl be trucked to
t the crushi ng pad via 900 tonne haul ttrucks and fed
d into
a 240 tonne hopper. The
T material that is -100m
mm reports d irectly to thee primary crushed ore stockpile
and the oversize
o mateerial is fed to
o the crusherr where it is reduced to pp80 of -100m
mm and fed tto the
stockpile. The stockpile has a live caapacity of two
o hours and a total capacity of 24 hourrs.
The mateerial is extraccted from thee stockpile via

v a vibratingg feeder and is fed througgh a static sccreen,
where the fine (-75mm
m) fraction reports
r to the agglomerattion feed connveyor and thhe course fraaction
(+75mm) reports direcctly to the ovverland conveeyor.
The cemeent and lime addition is co

onducted on the agglome ration feed cconveyor wheere the quanttity of
cement and lime addeed is controlleed by a weigh
htometer. T
The barren so
olution combined with thee lime
and cemeent is added to
t the agglom
meration convveyors at thrree transfer ppoints before it is added tto the
overland conveyor.
c Th
he crushing and
a agglomeraation flow sheeet is illustratted in Figure 17.2-1.
The agglo
omerated matterial is fed to the leach pad
p via the do
ownhill regennerative overrland conveyo
or. A
series of stackable/shiiftable conveyyors and graasshopper co
onveyors will deliver the ore to a staacking
conveyor that places itt onto the pad in 8 or 16 meter
m high lift
fts. The convveying and staacking flow shheet is
illustrated
d in Figure 17.2-2.
The proccess flow patth for the material

m is th
he same as Phase 1 forr the leaching, adsorptionn and
desorptio
on as describeed in in Sectio
on 17.2.1. An
n expansion is required fo
or Phase 2 to accommodatte the
increased capacity to 36 ktpd. Thee expansion will necessitaate increasingg the ADR ttrains from o
one to
four and increasing
i thee PLS pond capacity from 25,000m3 to
o 80,000m3. T
The expansionn will also inccrease
the number carbon strrips required from two to seven per weeek.

Pagge199


Figurre 17.2-1 Crush

hing, Stockpile, Screening and Ag
gglomeration Fllow Sheet

Pagge200
2


Figure
F 17.2-2 Overland
O Convey
yor and Stacking
g System Flow S heet

Pagge201
2
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

17.2.2 Process
P Pla
ant
The proceessing of Phaase 2 ore is the same as Phase 1 as described in Section 17.1.3. Due to
o the
increase in
n tonnes to be treated on
o a daily bassis, the Phasee 2 processinng plant will include an eextra
reactor fo
or gold deso
orption with two additio
onal electro winning cells and two DC rectifierrs to
accommod
date the largeer flows.
17.3 Heap
H Leac
ch Pad Design by Anddes
A
The leach pad designs have been co
ompleted by Anddes (201 5a, 2015c). The initial Phhase 1 heap lleach
pad (pad 1A)
1 has been constructed and is in op
peration. Fielld investigatio
ons for the P
Phase 2 leachh pad
(pad 2B) were
w compleeted in the second
s quartter of 2015. The currennt pre-feasibility design hhas a
maximum capacity of 208 onnes of oree, with a totaal lined area of 2,218,8000 m2. The deesign
2 million to
includes fiive ponds th
hat include a PLS collecction pond, an event po
ond, raincoatt pond and two
sedimentattion ponds. The
T Phase 2 pad design critteria are sum
mmarized in Table 17.3-1.
Table 17.3
3-1 Phase 2 Leach Pad
d Design Critteria
Desc
cription Unitt Desiign Criteria
Dry tonnes
t per day tonne/dday 36,000
Bulk density
d tonne/m
m3 1.7
Overall slope H:V 22.5H:1V
Operrating time monthhs 120
Averaage ore moisturee % 4.2
Nominal irrigation raate L/h/ m2 10
Maxim
mum irrigation rate
r L/h/ m2 11
Irrigattion type --- wobbblers/emitters
Maxim
mum irrigation flow m3/hrr 1500
Evapo
oration losses (irrrigation) % 3
Evapo
oration losses (p
ponds) % 100
Evapo
oration losses (irrrigated cells) % 90
Free percolation flow
w (drain-down hr 24
PLS pond
p capacity m3 80,000
Sedim
mentation pond 1 m3 10,000
Sedim
mentation pond 2 m3 8,000
Raincoat pond m3 40,000
Big evvent pond m3 300,000
Pond slope H:V 2:1
Leak detection system
m --- yes
Maxim
mum height m 180
Maxim
mum capacity tonnees 2008 million

Pagee202
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

Pond capaccities are based on water balance studiies conductedd by Anddes (2015b). Thee use of rainccoats
(HPDE covvers) on pad 2B will be reequired to minimize
m the aamount of waater requiringg treatment pprior
to dischargge during thee wet season. The HDPE
E covers will act to preveent infiltration of precipitaation
into the leeach pad, minimize dilution h solutions annd reduce the amount of effluent requuiring
n of the leach
treatment.. However, even
e with thee use of rainccoats, the Phhase 2 processs facility willl not be in w
water
balance du
uring an average precipitaation year. Quantities to bbe dischargedd during averrage precipitaation
years with the use of raaincoats will vary
v from zero to a maxim
mum of apprroximately 400,000 m3 per yyear.
The effluen
nt to be disch
harged duringg an extreme wet year cann reach a maaximum averaage of 46.4 L//s. A
water treaatment plant will
w be installed in prior to
o commissionning of the Phhase 2 leach ppad to handlee the
potential discharge
d of process
p solutions.
17.4 Phase
P 1 an
nd 2 Proc
cess Parameters
The main process

p param
meter for Phaase 1 and Phaase 2 are sum
mmarized in Table 17.4-1.
Table
T 17.4-1 Phase 1 and
a Phase 2 P
Process Parameters
Pa
arameter ROM C
Crush Ore
Dry tonnes of ore/day* 14,300 36,000
Au Head grade
g 0.64
0 g/t 0.52 g/t
Average flo
ow rates 400
4 m3/H 16000-1800 m3/H
Leach timee 80
0-90 days 775-85 days
Lift height 8 meters 8--16 meters
Crush sizee 100% minus

m 300mm
100%
% minus 75mm
(p80 minus
m 150mm)
NaCN con
nsumption 0.2 kg/to
onne of ore 1.5 0.3 kgg/tonne of ore
Lime consu
umption kg/to
onne of ore 1.0 kgg/tonne of ore
Cement co
onsumption no
o addition 6 kg/tonnee (-75mm fractio
on)
Average Au
A Recovery 73% 80%
*tonnes prrocessed

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18.0 PROJECT
P T INFRA
ASTRUCT
TURE
The infrasttructure and services to su
upport the Sh
hahuindo min e include thee following maajor componeents:
Sitte Access Roaad;

Po
ower supply in
ncluding backk-up power an
nd distributio n;
Water
W supply fo
or process waater, potable water and firre water;
Sew
wage system and solid wasste disposal;
Pro
oject buildinggs including truck
t shop, explosive maagazines, warrehouse, maintenance/pro
ocess
waarehouse, fuel station and offices;
Caamps for consstruction and operations in
ncluding dininng facilities; annd
Miscellaneous site services such as security, first aid cllinic and communications.
18.1 Services
S and
a Infrasstructure
18.1.1 Roads
R
Access to Shahuindo is via a nattional highwaay that runs north-southh along the east side off the
Condabam
mba river. Frrom the highw
way, the Shah
huindo site iss west of the junction at P
Pomabamba o
on an
unsealed road
r four kilo
ometers long. There is a concrete brridge on conccrete piers w
which crossess the
Condebam
mba river. Thee bridge overr the river is 90m long annd 3.5m widee, built approxximately 15 yyears
ago. The Company
C plan
ns to upgrade the bridge in
n 2017.
A private road enters the mine pro

operty a few kilometers ffrom the wesst side of thee bridge. This 11
kilometer unsealed roaad provides access
a to thee camps, officces, mine, pro
ocess plant aand other pro
oject
facilities. This
T road will be improved during consttruction of Phhase 1.
All site acccess and haul roads will bee designed acccording to thee Companyss internal stanndards (Shahuuindo
Internal Trransit Standarrd) for widths and grade to
t ensure safe
fe and efficiennt operations. The locatio
on of
the access roads are shown in Figuree 18.1-1.

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Figure
F 18.1-1 Mine Acce
ess Road
18.1.2 Power
P Supp
ply
The startup power supp
ply will be with generatorss supplying 1..2MW. Perm
manent powerr supply for P
Phase
ons will be fro
2 operatio om the Natio
onal Commeercial Grid. T
The total lonng-term poweer requiremeent is
calculated to be 7.4MW
W.
orary power demand for Phase 1 will be supplied by three small diesel gennerators for lloads
The tempo
near the process plan
nt (800Kw); warehouse, camp and o
offices (350kkw); and at the maintennance
workshopss (250kW). When
W permaanent power is available iin Oct 2017,, the small geenerators wiill be
replaced by one 1.8MW
W diesel generrator as a bacck-up power source for thhe site.
uindo substattion will conn

The Shahu nect to the national
n grid in 2017 at 2220kV, distributed on sitte at
23kV and
d further stepped down to 4160V, 460V,
4 220V and 110V. The substatiion is locateed at
9152654N
N 806437E, 4.9
9 kilometers from the min
ne and 6.5 kilo
ometers from
m the processs plant.

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For Phase 2, power forr crushing, aggglomeration and
a ore stackking will be suupplied from the process plant
substation via 22.9 kV electric overrhead line to a secondaryy distribution system of thhree small m
motor
control centers located
d close to the crushing plan
nt, overland cconveyors and mobile staccking system.
An internaal 23 kV line from the plant to the cam

mp (passing t hrough the ccrusher/conveeyor area) will be
installed in
n 2016 to carrry energy fro
om the plant to the worksshops and caamps. The flow will be revverse
when connection to th
he grid is made in 2017,, with powerr coming fro
om the substtation feedingg the
orkshops crussher/agglomerration/conveyyor system annd then the plant.
camps, wo
18.1.3 Water
W Supp
ply
h water conssumption for the Phase 1 project will average 10.55 L/s in the d
Total fresh dry season w
with a
maximum of 12.7 L/s. This consum
mption rate, with
w the use o
of raincoats, will increasee to an averagge of
33.6 L/s in the dry seaso
on and an aveerage of 33.9 L/s (maximum
m 50.2 L/s) dduring Phase 22.
Total projeect water sup

pply will be sourced
s from
m an 18,000 m3 collection pond of run-off water (33 L/s)
and a wateer borehole source
s locateed 300m westt of Shahuinddo pit (25 L/s)). The balancce of the requuired
flow will come from pitt dewatering (15L/s) whicch will be pum
mped at the bbeginning of year two of mine
operationss, with water stored in the major even
nts pond duriing the wet sseason. Therre is an optio
on to
develop a second
s waterr well on onee of the high flow
f hydrogeo
ological test hholes.
Fresh wateer for the prrocess plant and leaching will gravity fflow from thhe collection pond to thee PLS
pond via a 150mm diam
meter by 3.2 kilometers
k lon
ng HDPE pipeeline.
Acquisition
n of a 75 m3/d
day potable water
w plant is planned in 20016 for drinkking and cookking water.
For fire waater, an exclu

usive fire wateer reserve of 200 m3 will bbe stored in tthe bottom hhalf of the pro
ocess
water tankk. Additional water truckss will be rentted locally fo r the three ttemporary sm
mall generato
ors in
case of a fire emergencyy.
18.1.4 Sewage
S Sysstem
There are currently tw nts of 40 m3/dday capacity each at the mine site. One is
wo sewage treatment plan
located next to the con
nstruction cam
mp and the seecond locatedd next to thee new operatiions camp. Sludge
volume geenerated in both
b treatmen
nt plants are collected annd utilized lo
ocally for com
mpost producction
with the trreated water recycled back to the proccess plant. Thhe plant from the construcction camp w
will be
relocated to
t the new caamp in early 2017.
2
A third sew
wage treatmeent unit of 40
0 m3/day will be installed iin 2016 for thhe process pllant and electtrical
maintenancce areas.

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18.1.5 Solid
S Waste
e Disposal
Solid wastte will be disposed fully in compliancce of local reegulations. Thhere are currently two w
waste
transfer faccilities; one of
o which is a hazardous
h maaterial storagee / hazardous waste transfeer station.
Solid wastee will be disp

posed of in a solid waste laandfill off sitee. Hazardous materials nott permitted tto be
o in a landfill will be transp
disposed of ported to thee appropriate facilities.
Specific haazardous wasste such as used

u oil, and batteries muust disposed of by a Speccialized Solid
d and
Dangerouss Waste servvice provider. A certified transport
t andd disposal com
mpany will co
ollect all wastte to
transport offsite
o for finaal disposal.
18.2 Project
P Bu
uildings
The Shahu
uindo mine buildings incclude adminisstration officces, mine waarehouse, maintenance sshop,
explosive magazine, co
onstruction caamp and perrmanent cam p, kitchen & dining facilitties, fuel storage,
uildings, and medical
security bu m centeer.
18.2.1 Truck
T Shop
p
The miningg fleet for Phaase 1 consistss of 21 Volvo
o 8x4 40-tonnne trucks, tw
wo Cat 374 exxcavators, tw
wo D-
8 dozers and
a a grader. The truck sh
hop f o r P h a s e 1 is deesigned with a semi-openn arrangemennt to
include repair bays forr small trucks, ancillary equ
uipment, lightt v e h i c l e s , wash and w
welding areas..
For Phase 2, the miningg fleet will bee 90-tonne du

ump trucks (C
Cat 777 or eequivalent) wiith corresponnding
loading and ancillary equipment. This
T fleet willl have a tottal capacity fo
or 36,000 to
onnes per daay. A
permanentt truck shop will be built in the secon
nd half of 20117 to accomm
modate and sservice the laarger
equipmentt.
18.2.2 Explosive
E Magazine
M
The explossive magazinee has one emu
ulsion storagee silo installedd for the Phase 1 start up.. In 2016 thiss will
be increaseed to two silo
os and then fo
our silos in Phase 2 (year 22018).
Explosives will be delivvered by sup

pplier trucks to the site. Each silo haas a 60-tonne capacity annd is
equipped with
w a pneumatic system
m for unloadiing. The silo
os are configgured to haave drive-thro
ough
loading forr the Mobile Manufacturin
ng Unit (MMU
U) truck that will be used to deliver thhe product to
o the
drill holes.. Blending an
nd mixing of the
t emulsion
n with the gassifying agent w
will be accom
mplished insid
de of
the MMU truck.
t

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Two addittional storagge magazines are includeed: one pow
wder magazine for storrage of boossters,
detonation
n cord, and accessories ussed to initiatee the blastingg; and one magazine to sttore blasting ccaps.
Each of theese magazines is located in
n the explosivves storage aarea near the ANFO/Emullsion silos weest of
the open pit,
p separated from the bullk explosives by earthen b erms as per rregulation.
18.2.3 Warehouse
W e and Proce
ess Maintenance
The wareh
house storage area and a covered maaintenance w
work shop arrea are preseently availablee for
Phase 1. The infrastructture will be expanded
e for Phase 2.
18.2.4 Fuel
F Station
ns
The main diesel storage facility in Phase
P 1 consiists of two pproject ownedd 60,000 gallon storage taanks.
This facilityy is completee with fuel disspensing systeems. In the ffirst half of 20018, two additional tankss will
be installed
d to achieve a total site storage
s capaccity of 240,0000 gallons whhich is enouggh fuel to opeerate
the site forr 18 days at full mining cap
pacity.
There are two addition

nal tanks - on
ne 1,000 gallo
on diesel storrage tank locaated in the pprocess plant area
to supply diesel fuel fo
or the elutio
on boiler, carrbon regenerration kiln annd the refininng furnace; aand a
nk of 8,000 gaallons dedicatted to the em
second tan mergency geneerator.
Fuel will bee delivered to

o the mine sitte via the sup
pplier tanker ttrucks. All sttorage tanks w
will be placed
d in a
110% capaacity concretee containmentt to assure no
o fuel is leakeed to the environment.
18.2.5 Offices
O
Administraation buildinggs/offices are already in place at the cconstruction camp and includes waterr and
power sup
pply along witth sewage faciilities. This facility will be rrelocated neaar the new peermanent cam
mp in
early 2016.
18.2.6 Constructio
C on and Ope
erations Ca
amps
The Shahuindo mine haas an existing camp (Sullideen exploratio n camp) on ssite with single and multi-rroom
layouts thaat currently house
h 500 peo
ople. The existing camp haas been expannded for use as a construcction
camp. Thee expansion included ten
n modular teent-style houssing units eaach able to aaccommodatee 32
workers, as
a well as onee module with
h 64 beds for staff workerrs.
Modular bathroom/sho
ower units aree equipped with
w toilets, uurinals and shhowers for eaach tent incluuding
the staff module.
m Thee associated sewage treaatment syste m is able to
o treat the aamount of w
waste
generated.

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The new operations camp is beingg arranged fo
or up to 8000 people neaar the clinic, dining room and
offices. It consists
c of fo
our new barrracks and six
x refurbished barracks relocated from the construcction
camp.
The majorrity of the wo

ork force is local and aree transportedd by bus from
m Cajabambaa and surrounnding
villages.
18.2.7 Dining
D Facilities
Temporaryy dining facilitties are curreently presentt on site to ccater for apprroximately 1,,000 workerss and
constructio
on personnel. A permanen
nt cooking an
nd dining faciliity will be buiilt in 2016.
18.3 Miscellane
M eous Site Services
18.3.1 Laboratory
L
Chemical assays for full support to
o the Shahuin
ndo operationn will be pro
ovided by thee La Arena aassay
laboratoryy operated byy a third partyy lab, CERTIM
MIN (certifiedd ISO 9001). The La Areena facility hass the
equipment and technical capability to conduct
c the reecommended metallurgical ccolumn tests ((permeability ttests)
during the course
c of operations at Shah
huindo.
For liquid samples such as PLS, barrren solution and

a other sollutions used aat the refinerry, there will be a
temporary satellite lab fo
or gold, silver, cyanide
c conceentration and liime quality co
ontrol.
Dor samp
ples will be preeliminary assayyed at the La Arena
A laborato
ory and later inn Lima at an exxternal lab.
18.3.2 Security
S
Access to
o the facilityy will be limited
l to tw
wo main gattes to accesss process aand camp aareas.
Approximaately 2 kilometers of fencing is alreadyy installed pri marily for saffety and secuurity reasons. The
entrance to
t the projecct is currentlyy manned 24
4 hours a dayy 7 days a w
week for identification conntrol,
random ch
hecks, drug an
nd alcohol mo
onitoring and vehicle chec k-in/out.
18.3.3 Medical
M Cen
nter/Clinic
c
A medical center and ambulance
a arre already prresent at the constructionn camp, but will be reloccated
next to the
t new opeerations cam
mp. Emergen
ncy medical staff on sitee include onne physician, one
paramedic,, one nurse and
a one driver/rescue persson.
In the eveent high level medical inteervention is needed,

n the aambulance iss equipped aand prepared
d for
emergencyy transport to
t either Caajabamba Ho
ospital (40 kkilometers) o
or Cajamarcca Hospital (100
kilometerss).

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18.3.4 Communic
C ations
The infrasttructure for radio, telepho
one and interrnet communnications betw
ween Lima, thhe La Arena mine
and the Shahuindo minee is currently in service.
A recent upgrade wass made to th

he system co
onnecting thhe construction camp to the surrounnding
facilities su
uch as the process plan
nt, new operrations campp, future cru shing & aggllomeration pplant,
Cajabambaa and Cajamaarca City. Thee existing datta room and control centter will be reelocated from
m the
constructio
on camp to th
he new perm
manent camp.

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19.0 MARKET
M T STUDIE
ES AND CONTR
RACTS
19.1 Metal
M Con
ntracts
The Shahu
uindo mine will
w produce gold in the form of dor bars. The weight of thhe dor barss and
preliminaryy assays are used
u to calcullate gold and silver contennt and the oveerall value of each shipmennt.
Several intternationally recognized

r precious metaal refineries hhave expresseed interest in refining gold
d and
silver from
m Shahuindoss production. The initial production
p w
will be refined at Metalor T
Technologies S.A.,
(Metalor) refinery in Marin,
M Switzerrland. Metalo
or is currentlly used to reefine the Com
mpanys La A
Arena
n. Required due diligence for refiningg Shahuindoss production by the refinnery is underrway.
production
Once sustaainable produ
uction levels are
a achieved, alternative reefining arranggements may be explored..
Consistentt with the Co

ompanys other dor prod
duction, oncee dor bars arre delivered tto Metalors vault
in Lima, Metalor
M will credit
c 95% of
o the estimaated gold co
ontent in thee Shahuindo gold bars to
o the
Companyss pool accou
unt. The reemaining gold
d and silver content aree credited to
o the accounnt of
Shahuindo SAC when the final assayss have been agreed
a with t he refinery.
Several of the large international bullion

b banks have expresssed interestt in purchasinng the Shahuuindo
production
n. Production will be tend
dered to the banks on a m
monthly basiss to ensure m
market pricingg and
timely cash
h collection.
The Comp
pany anticipattes typical shipping and reffining costs to
o be approxim
mately USD 44.50 per ouncce of
gold refineed, based on the
t historical experience at
a Tahoes La Arena mine.
19.2 Mining
M Allliance
Shahuindo has entered into a minin

ng alliance witth STRACON
N GyM, a prrominent minning contracto
or in
Peru. Thee mining allian
nce is based on a philoso
ophy of best for project decision makking and run by a
board or leadership team made up of threee representtatives from Shahuindo SAC and tthree
representaatives from ST
TRACON Gym. The sco
ope of the allliance includees all civil construction annd all
mining opeerations inclu
uding associated indirect su
upport activitties. STRAC
CON GyM pro
ovides the m
mining
fleet equipment to Shah
huindo SAC.
The materrials, servicess, pay roll an

nd equipmen
nt used for tthe in scopee activities off the alliancee are
variously paid
p by Shahuindo SAC, or STRACO
ON GyM, wh ichever is deetermined to
o be best forr the
project. STRACON
S GyM
G is compeensated by reimbursementt of their cossts and a perccent fee on aall in-
scope costts and is eligible for an inccentive bonuss at the end of each year of 10% of all fees, condittional
on safety, productivity
p and
a efficiencyy targets beingg met.

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The Shahu
uindo mining alliance is very similar to the successfuul mining alliaance currentlly operating aat La
Arena. It offers reducced capital costs to Shah
huindo, signifiicant flexibilitty in LOM pplanning and fleet
requirements, significan
nt know how
w in civil con
nstruction, m
mining and fleeet managemeent and signifficant
reduction of risk to ach
hieving the annual mine pro
oduction plann.

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20.0 ENVIRON
E NMENTA
AL STUDIES, PE
ERMITTING AN
ND SOCIAL
OR
O COM
MMUNITY
Y IMPAC
CT
The environmental an
nd social asp
pects of the Shahuindo Project are summarized in this chapter.
Environmeental studies, laws and reggulations, perm
mitting, prelim
minary closurre plan, and ssocial impactss are
discussed.
20.1 Environm
E ental Managemen
nt Plan
Tahoe currrently has an

n established
d comprehenssive Environm
mental Managgement Plan that is based
d on
North Am
merican practiices and regu
ulations. Thee operating p lan that will be implemennted at Shahuuindo
will includee Tahoes maandate that the
t Shahuindo
o mine meett or exceed tthe Companyys Environmental
Managemeent Plan. Thee Companyss environmen
ntal managem
ment plan inclludes regularrly and system
matic
monitoringg of:
Air quality
Surface Water Quality
Grroundwater Quality
Q
Strream Sedimen
nt Geochemistry
Blaast Vibration
No
oise Levels
Waste
W Rock Geeochemistry (ARD monito
oring)
Waste
W Disposal Practices
Reeagent Handling and Storagge
Reeclamation and Reforestatiion Progress
20.2 Environm
E ental Stu
udies
20.2.1 Environmen
E ntal Impac
ct Statement
The Shahu
uindo mine is operating under an inittial Environm
mental Impactt Statement (EIA, Estudio
o de
Impacto Ambiental)
A app
proved in 201
13. The EIA was
w prepared according to
o Ministry of Energy and M
Mines
(MEM) req
quirements an
nd complies with
w Peruvian regulations.
Baseline sttudies conduccted for the EIA included all physical, biological andd social aspeccts related to
o the
constructio
on and operaation of the Ph
hase 1 projecct.

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Baseline sttudies includeed:
Meeteorology an
nd Climate
Air Quality
oise and Vibration
No
Geeomorphologgy
Geeology
So
oils and Land Use
U
Hyydrology and Hydrogeologgy
Sediment Geocchemistry
ora and Faunaa
Flo
Hyydrobiology
Arrchaeology
Landscape
Trraffic
En
nvironmental Liabilities
The Shahu
uindo EIA dettermined thatt the project will have som
me impacts o
on the environment as a rresult
of normal construction
n and operation activities, although w
with the impplementation of the designed
mitigation measures, th
he environmeent will recovver during thhe years follo
owing closuree. The Com
mpany
mitted to insu
has comm uring suitable water qualitty for five caaserios (villagges) downstrream of the mine
during con
nstruction and
d operations.
20.2.2 Geochemic
G cal Charactterization
Shahuindo SAC is perfo
orming a Geo
ochemical Chaaracterizationn Study to beetter understaand rock matterial
geochemistry and the water quallity associateed with the exposure tto material extracted duuring
operationss. This study will supportt the establisshment of geeochemical ccriteria for fuuture compo
onent
design and water managgement throu
ugh quantitativve modelling..
Activities performed
p incclude:
An
nalysis of the geochemical
g background information;
Geeochemical saampling plan;
Deevelopment of
o geochemicaal assay progrram;
An
nalysis and intterpretation of
o geochemicaal assays resuults;

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Deefinition of Geeo Environmeental Units (G
GEU); and
Pitt block modell and mine plaan assessmen
nt for quantificcation of GEU
U
20.2.2.1 Analysis of
o Geochem
mical Backgrround Inform
mation
nd geochemiccal data includ
Backgroun des results frrom humidityy cell tests co
onducted by KCA for thee EIA
(Defilippi, et. al., 2012), geochemicaal analyses off exploration drill core, aand the projeect geologicall and
geochemiccal databases.. Dominant lithologies and
a alteratio n were idenntified and asssessed and ttheir
relative su
ulfur contentss evaluated. Dominant litthologies werre determineed to be siltsstone, sandsttone,
breccia an
nd intrusive rocks.
r Predom
minant alteraation assemb lages noted were phyllic (quartz-sericcite),
argillic and
d silicic. Apprroximately 50
0% of the matterial within tthe pit has a sulfur contennt less than 00.1%;
approximaately 15% of the material within
w the pit has elevated (>1%) sulfur content.
20.2.2.2 mical Charac

Geochem cterization
Based on analysis of th
he baseline data,
d further sampling andd analytical pprograms werre undertakeen to
better characterize the rock geochemistry, includ
ding a statisticcal analysis off sulfur conteent of the matterial
within the pit. Thirty-sseven (37) core samples, representing
r tthe primary rrock and alterration types w
were
collected and
a analyzed; the results of
o which are summarized inn Table 20.2-1.
Table 20.2-1
1 Sulfur An
nalysis
Total Sulfurr Content
Lith
hology <0.1% 0.1%
% - 0.5% 0.5% - 1.0% 1.0% - 5.0% >5.0%
PH AR SI PH AR SI PH AR PH AR PH AA
Siltsttone 3 1 - 1 - 1 1 - 2 1 2 1
Sand
dstone 1 1 2 1 1 1 - 1 1 - 1 -
Intru
usive 1 1 - 1 1 - 1 - 1 - 1 -
Brecccia 1 - 1 1 - - - - 1 - - -
Quatternary 1 1 - 1 - - - - - - - -
Sam
mple Total 7 4 3 5 2 2 2 1 5 1 4 1
Notte: PH: phyllic altteration / AR: arrgillic alteration / SI: silicic alteraation
d rock charaacterization studies

Completed s includ
de mineralogiical studies ((microscopy and petrograaphic
studies), Acid-Base
A Acccounting (ABA
A) static analyysis and pastee pH analysis, total rock cchemistry (W
WRA),
sequential extraction (sseven stage) analysis,
a and humidity cellss tests. Mineeralogical stud
dies and hum
midity
cell tests and
a were perrformed on ten 7 core samplees. Selection of the samples was based on
t of the 37
their further utility in th
he hydro-geochemical mod
deling.

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ABA resultts showed accid generation
n potential fo
or samples wiith greater thhan 0.1% sulfuur content. P
Paste
pH resultss corroboratted the ABA
A results an
nd showed i ncreasing accid generatio
on potential with
increasing sulfur conten
nt. ABA anaalyses by KCA (Defilippi, et. al., 2012)) determined the spent o
ore is
potentiallyy acid-neutralizing. The ABA resultss, corroboraated by the paste pH teests, suggestt the
neutralizattion potential of the spent ore outweigh
hed the acid ggenerating po
otential i.e., neet neutralizing).
Sequential extraction an
nalyses showed sulfur present as both primary and secondary suulfides. Total iron
present in sulfidic mateerial averaged
d about 3% (p
pyrite and/orr chalcopyritee). Relevant amounts of iron
were also found in the oxide stage (magnetite, hematite
h or go
oethite) and a minor fracttion was founnd as
silicates (liikely associatted with biottite). Total copper
c conteent was repo
orted around
d 80 ppm, m
mainly
associated with sulfidees (chalcopyrrite, chalcocitte or covelliite). Lead ccontent associated with both
sulfides and
d oxides was below 400 ppm.
p
Ten humid
dity cell tests, each with 20
2 week duraation, were c ompleted. W
Weekly leachaate analyses ffrom
humidity cells generallyy showed low
wer pH valuess (<2.5) for saamples with hhigher sulfur content, withh pH
decreasingg through cyclle advance for all cells. A high correlattion between sulfate and sulfur contentt was
verified. It was observeed that in leaachate from samples withh less sulfur ccontent, sulfaate concentraation
diminished
d quickly to one order of magnitude
m witth respect to cycle 0.
Using the maximum permissible

p limit (LMP, ass determinedd by statute DS 010-20110 MINAM) as a
reference, excess iron and zinc werre verified in cells with mo
ore than 1% ssulfur contennt. Excess coppper,
cadmium and
a arsenic were
w shown until
u cycle 10. While theree is no LMP for magnesiuum and aluminum,
high conccentration of
o aluminum in high su
ulfur conten t (>1%) samples and high magneesium
concentrattions in somee low sulfur co
ontent samples (0.1-0.3%) were found.
20.2.2.3 Definition
n of Geo Env
vironmenta
al Units (GE
EU)
Results of the geochem
mical characterization test work were uused to classiffy ore and w
waste material into
Geo Envirronmental Un
nits (GEU). These
T GEUs define
d mater ial based on its acid geneeration and m
metal
leaching po
otential (Arco
os, 2013).
Formulae developed fo
or the GEU classification form the bbasis for the modelling o
of the deleterrious
elements, including:
i
NA d generation): <0.1% S
AG (non-acid
AG-Low ML (potential acid
PA d generation and
a low poteential of metal leaching): 0.1 < S% < 0.3
PA
AG-Mod ML (potential
( acid
d generation and medium potential of m
metal leachingg): 0.3 < S% < 1
PA
AG-High ML (potential
( acid
d generation and high poteential of metaal leaching): >
>1% S

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The main factor that correlated
c to metal leachiing and acid generation o
of the Shahuindo material was
sulfur conttent.
20.2.2.4 ation of GEU

Quantifica U material
The GEU criteria weree integrated into the resource block m
model and mine schedule to determinee the
distribution of GEUs ex
xtracted (ore and waste) over
o the life o
of mine; the rresults of which are preseented
in Figure 20.2-1.
2
MaterialExtraction
Waste
MaterialExtraction
Ore
Figure 20.2-1 Annual Distribution

D of Extracted
d GEU
The analyssis shows thatt during the fiirst two years of the minee life (2016-20017), about 775% of waste rock
will be NA
AG; 20% will be PAG-LOW
W; and the co
ombined PAG
G-MED & PA
AG-HIGH will be less thann 5%.
Modeling suggests
s during the first years
y of prod
duction, efflueent from thee waste dumpp will not exxceed

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permissiblee limits for metal
m content, even at 5 pH
H. Over the rremainder off the mine lifee (2018-2025)), the
amount off NAG wastee rock extraccted will reduce to 40-500% and the PPAG-MOD & PAG-HIGH
H will
increase up to 25%. Higgher metal co
oncentrationss in the wastte dump effluent during thhis time woulld be
expected. The Compaany is activelyy investigatingg appropriatee ARD prevenntion and mittigation/treatm
ment
solutions to
t be implemeented prior to
o Phase 2 operations.
20.2.3 Site
S Monito
oring
ucts ongoing environmenttal monitorinng programs as committeed to in the EIA
Shahuindo SAC condu
environmeental managem
ment plan thaat includes air quality (paarticulate mattter and GHG
G), surface w
water
and groundwater qualitty, sedimentaation and sed
diment geochhemistry, noisse levels, and
d sound presssure
(vibration). Frequency of reporting to the autho
ority (Ministryy of Energy aand Mines, O
OEFA and Minnistry
of Agricultture) is quarteerly and biann
nual in the case of biologiccal monitoringg.
20.2.4 Closure
C Pla
an
The Shahu h been dessigned to meeet and compply with the environmenttal standards and
uindo mine has
legislated closure
c requirements of Peru. In accorrdance with PPeruvian requuirements, co
ompany standards,
and acceptted industry practices,
p the developmentt, operation, and reclamattion plans aree designed to:
Asssure long-terrm physical an

nd geochemiccal stability;
Co
omply with naational enviro
onmental regu
ulations;
Reecover areas affected
a by prroject compo
onents;
Mitigate pre-existing risk con
nditions;
Asssure that po
ost-closure use of the alttered area annd its aestheetics are com
mpatible withh the
envvironment;
Execute a Community Relatiions Plan during the operaation, closuree and post-clo
osure stages; aand
Co
omplete a Prrogressive Closure and Final Closure of the operration, such tthat post-clo
osure
conditions get to
t a state of passive
p care.
The closurre plan includes the follow

wing actions to
o be taken:
Du
uring operatio
ons:
n activities will be initiatedd as soon as pportions of thhe project arre no
Concurrentt reclamation
longer required (Progreessive Closure). Progre ssive closuree activities w
will be complleted
whenever possible, especially the co
overing of w
waste dumps to minimizee infiltration ffrom
nts.
storm even
Closure activities will taake place wh
henever posssible on all faacilities that w
will no longeer be
used in the final stage off the mine lifee; this will occcur during thee rinsing of thhe leach padss.

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Att closure:
The open pit

p will remain as a permaanent featuree, with bermss installed and
d roads closeed to
prevent pu
ublic access. Any potenttial acid gen erating mateerial on the pit floor will be
covered wiith non-acid generating
g waaste. It is exxpected that tthe pit will fiill with waterr and
form a pit lake. Overrflow will bee treated in a remediatio
on plant and
d/or by a paassive
treatment facility.
f
The heap leach will be rinsed to rem
move trace ccyanide to addequate dischharge levels. The
heap will undergo
u mino
or re-contouring, followedd by placemeent of a low
w-permeabilityy soil
cap and revvegetated. The
T low-perm
meability soil ccap will be ddesigned to prevent infiltraation
from precip
pitation, but any
a leach efflu
uent which o
occurs will bee discharged tto the pit lakee for
treatment if necessary.
The solutio
on ponds will be closed following proceedures establlished in the approved clo
osure
plan. These procedures de
includ de-comppaction, re-contouring of containm
ment
nts and infillin
embankmen ng of ponds back
b to the a djacent land level using inert material ffrom
borrow arreas followed
d by a naturral covering (cap) of low
w-permeabilitty soil, thenn re-
vegetated.
The water storage pon
nds will be left intact fo
or future usee by the loccal population or
reclaimed depending
d on
n communityy desires andd/or requirem
ments. Side slopes and o
other
affected areeas will be re--vegetated acccording to thhe approved cclosure plan.
Exposed leeach pad berrms will be re-graded
r wiith the expo
osed liner eitther removed or
buried.
The processsing plant and
d support facilities will be removed andd the land re--vegetated.
Concrete pads
p and foundations will be
b demolishedd and foundattions removeed.
Operating surfaces
s will be
b reclaimed and re-vegettated.
nstructed in lifts at a nattural angle o
The waste rock facilityy will be con of repose. W
With
setbacks beetween lifts, the overall waste
w dump sslopes will be approximattely 2.5(H):1.0(V)
and will rem
main at this gradient
g at clo
osure. A capp consisting o
of low-permeeability soil will be
placed overr the facility and
a re-vegetatted.
Road accessses to hazard
dous areas (o
open pits, wasste dump andd leach pad) w
will be close, with
access resttricted to allo
ow essential monitoring aand maintenaance work to
o be carried out.
Where practical, roads will
w be turned
d over to thee local commuunities for futture use.
A program of physical and
a geochemiical monitorinng will take pplace during tthe active clo
osure
and post-clo
osure periods.

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20.2.5 Existing
E Env
vironmenttal Conditio
ons
There are surface disturbances associated with in
nformal mininng activity witthin the projeect area, prim
marily
in the Algaamarca anticlline and La Chilca
C Baja arreas. The C
Company has an expectatiion that a ceertain
level of envvironmental remediation
r will
w need to be
b conducted at these sites.
With a perrceived exhau

ustion of easily-mineable mineralization
m n in the Algam
marca anticline area, there may
be a risk of
o informal miiners moving to exploit otther areas wi thin Tahoes concessions.. An inventory of
existing en
nvironmental conditions within
w the con
ncessions wass submitted aas part of thee EIA process. At
the effectivve date of thiis report, Shaahuindo SAC is in negotiattion with thee informal minners at Algam
marca
to terminaate their mining activities and
a start otheer legal and pproductive acctivities in thee area. Shahuuindo
SAC has co
ommitted to support this transition over the next 6 months.
The inform
mal miners at La Chilca weere vacated in
n August 201 5. Shahuindo
o SAC now hhas full accesss and
possession
n of the area and
a is perform
ming an envirronmental basse line study tto evaluate thhe conditionss.
20.3 Permits
P
At the effeective date off this report, the majorityy of permits rrequired for Phase 1 operrations have been
approved, with the outstanding permits
p in th he final stagees of approvval. The following discusssion
summarizees the requireed permits fo or both explo oration and ooperation acttivities and thhe approval sttatus
of the permmits.
20.3.1 Exploration
E n
The Ministtry of Energyy and Mines granted
g several approvalss for Sulliden to conduct their exploraation
activitiesk between 200
03 and 2014
4. These perrmits were ttransferred to
o Shahuindo SAC upon their
n by Rio Alto in 2014. Thee primary perrmits include:
acquisition
Im
mpact Study Seemi Detailed (EIAsd) app
proved by R.D
D. 229-2010-MEM/AAM o
on 15 July 2010;
Firrst modificatio
on of Impact Study Semi Detailed
D (EIAssd) approvedd by R.D. 083-2010-MEM/A
AAM
on
n 15 March 20
011;
Second modificcation of Im
mpact Study Semi Detaileed (EIAsd) aapproved by R.D. 096-22012-
EM/AAM on 27
ME 2 March 2012; and
Teechnical Supporting reportt of Impact Study
S Semi D oved by R.D. 146-
Detailed (ITS-EEIAsd) appro
20
014-MEM-DGAAM on 26 March
M 2014.

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20.3.2 Mine
M Consttruction an
nd Operatio
ons
20.3.2.1 Environm
mental Impac
ct Assessme
ent (EIA)
Shahuindo SAC conduccts constructiion activities under an (EIA
A) approved by R.D. 339-2013-MEM/A
AAM
on 10 Sep
ptember 2013
3; the First Technical
T Susttentatory Re port of Envirronmental Im
mpact Assessm
ment
(ITS-1-EIA) approved byy R.D. 613-20
014-MEM-DG
GAAM on 18 December 22014 and the Second Techhnical
ory Report of Environmenttal Impact Assessment (ITSS-2-EIA) apprroved by R.D
Sustentato D. 265-2015-M
MEM-
DGAAM on 7 July 2015,
2 The EIA
E documen
nted the basseline enviro
onmental and
d socioecono
omic
environmeent of the Shahuindo project and surrounding areaa and provideed an analysiss of the projjects
potential impacts to air quality, sound levelss, surface aand groundw
water, soils, flora and faauna,
archaeologgical resourcees and socioeeconomic meeasures, and an Environmental Manageement Plan w
which
included prevention and
d mitigation measures.
m
oval of the EIA allowed the company to proceed with the perrmit applicatiions required
The appro d for
constructio
on and operaation of the Shahuindo
S mine, in accorddance with Peeruvian regulations. Exam
mples
of these permits
p includ
de water usee license, arcchaeological ppermits, beneeficiation conncession (pro
ocess
plant operations), and im
mplementatio
on of the mine plan (Mininng Permit), am
mong others.
ntly approved
The curren d EIA is applicable for con
nstruction andd Phase 1 opperations. Shhahuindo SAC
C has
submitted an EIA modiffication (MEIA
A) to cover th
he expanded Phase 2 projeect. The MEIA
A is under reeview
by the Peruvian authorities with receeipt of approvval expected in 2016.
20.3.2.2 Certificate
e for the Ine
existence of Archaeolo
ogical Rema
ains (CIRA)..
During 20 7, Sulliden peerformed arcchaeological ssurveys in thhe project arrea in support of
003 and 2007
environmeental permits necessary for them to co
onduct explorration activities. The survveys indicated
d the
presence of sites considered to have
h potentiaal archaeologgical significaance. Sullideen undertook an
Archaeological Evaluatiion (PEA is the Spanish acronym) to
o determine whether a Certificate forr the
Inexistence of Archaeologgical Remains could be granted. This ceertificate is a pre-requisitee for the Minnistry
of Energy and
a Mining an
nd is necessarry for the starrt-up of operrations.
Shahuindo SAC continu

ued archaeolo
ogical investiggations withinn the project and has receiived the follo
owing
permits:
Certificate for the Inexistence of

o Archaeologiical Remains aapproved by C
CIRA No 1733-2013 on 111 July
2013 and issued
d by the Minisstry of Culturre.
Certificate for thhe Inexistence of Archaeologgical Remainss corresponding to four ppotential areaas of
intterest indicatted in CIRA No 173-2013 approved by CIRA No
o 232-2015 o
on 15 Septem
mber
2015 and issued
d by the Minisstry of Culturre.

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Arcchaeological Monitoring
M Plann (PMA) wass approved bby R.D. No 1 25-2015-DD
DCCAJ/MC on 29
Maay 2015 and isssued by the Ministry of Culture.
C
20.3.2.3 Mine Clossure Plan

The Mine Closure Plan
n was approvved by R.D No
N 132-2015 -MEM-DGAA
AM on 10 Maarch 2015 byy the
Ministry off Energy and Mines. This permit speciffies that all c omponents o
of the projectt will be closeed in
three gradual stages (prrogressive, fin
nal and post closure).
c It aalso includes tthe budget fo
or the closuree and
nt of guaranteees to be paid
the amoun d for the closu
ure bond.
20.3.2.4 Beneficiattion Concesssion

o SAC received the Benefficiation Conncession whicch authorized
ovember 2015, Shahuindo
On 25 No d the
operation of the processsing plant an
nd major proccessing compponents for Phase 1 operaations. The liccense
d by the Min
was issued nistry of Enerrgy and Minees by means of Resolutio
on No. 2468--2015-MEM/D
DG -
Water Usaage Permits (p
process wateer).
20.3.2.5 Water Ussage Permitts

Shahuindo SAC was grranted the Water
W Use liceense by Reso
olution No. 1157.2015-AN
NA-AAA.M o
on 12
Novemberr 2015, issued
d by the Natio
onal Water Authority.
A
20.3.2.6 Mining Plan

P
On 27 No
ovember 2015
5, Shahuindo SAC receiveed the licensee authorizingg the start off activities forr the
developmeent and comm
missioning of the Phase I project.
p Site inspection off the constructed componnents
is scheduled for January 2015 with approvvals for full operations expect to follow sho
ortly.
oning activitiees are currenttly being cond
Commissio ducted underr a temporaryy commissionning permit.
20.3.2.7 Operation
n Permits
At the effeective date of
o this reportt, Shahuindo SAC has obttained operattions permitss for fuel storage,
reagent sto
orage and usee, explosive magazines,
m exp
plosives handdling and use, and power ggeneration.
Resolution
n No. 311119
90008604 app
proved on 11 Novemberr 2015 and isssued by the Superintendeencia
Nacional de
d Administracion Tributaaria (SUNAT
T) approved rreagent storaage and use. Resolution No.
02446-2015-SUCAMEC
C/GEPP appro
oved on 10 November 22015 was isssued by the Superintendeencia
Nacional de Control de Servicios de Segurid
dad, Armas, Municiones y Explosivo
os de Uso Civil
C) approving explosives handling and use.
(SUCAMEC u

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20.3.2.8 Permanen
nt Power Co
oncession
This permit is required
d for the con
nnection to th
he transnatio
onal power grrid and substtation operattions.
Approval was
w received from the Co
omit de Opeeracin Econ
mica del Sisttema Interconectado Nacional
(COES) aftter acceptancce of required
d environmen
ntal and socia l studies and construction plans.
20.3.2.9 Easementts and Rightt-of-Way

Easementss to accommo
odate subsidiaary power lin
nes to the prroject site, acccess roads, aand roads inteernal
to the projject.
20.3.2.10 District an
nd Provincia
al Municipality License
es
District an uired for expploration, deevelopment, cconstruction, and
nd/or Provinccial licenses may be requ
operating activities.
a
20.4 Social
S Imp
pact
20.4.1 Location
L off the Study
y Area
Shahuindo is located in
n the departm marca, in the province of Cajabamba aand the district of
ment of Cajam
Cachachi, (Figure 20.4--1). The projject area is characterized
c d by varied ttopography w
with several aareas
heavily disssected by riveers and stream
ms. Altitudess range from 2,500m to 3,,350m above sea level.
20.4.2 Social
S Baseline Study
According to the ESIA
A Modification
n, the Area of Influence has been furrther divided
d into Directt and
Indirect Arreas of Influence . The Dirrect Area of Influence (Figgure 20.4-1) is defined as those peoplee and
or places which
w may directly
d experrience either positive or nnegative social effects fro
om the Shahuuindo
mine to vaarying degreees. Fourteen villages
v have been identifieed within thee Direct Areaa of Influencee and
include Alggamarca, La Fila, Liclipam
mpa Alto, Pau
uquilla, Rosahhuayta, San Jo
ose, Araqued
da, Quillishpaampa,
Moyan Alto, Moyan Bajjo, Pampachancas, Shahuin
ndo, Liclipamppa Bajo and SSiguis. Withinn the Direct A
Area
of Influencce, the four communities of
o San Jose, Shahuindo,
S M oyan Alto annd Moyan Bajo will experience
some leveels of resettlement. A detailed
d Reseettlement Acction Plan, sttructured in accordance with
Internation
nal Finance Corporation
C (IFC)
( Perform
mance Standaard 5 for Lannd Acquisitionn and Involunntary
Resettlemeent has been prepared to mitigate the effects
e from rresettlement and land acquisition.
The Indireect Area of In

nfluence is composed of peeople and orr places that m
may experiennce positive ssocial
impacts an
nd reduced neegative social impacts com
mpared to tho
ose located inn the Direct A
Area of Influeence.
Communitties within th
he Indirect Arrea of Influen
nce include thhose living inn the districtss of Cachachii and
Condebam
mba.

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Figure 20
0.4-1 Location of Directt Influence Area

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20.4.3 Public
P Conssultation and Engagement Plan
n
Shahuindo SAC is com
mmitted to prroactive and transparent engagement with the com
mmunities, ppublic
institutionss and govern
nment agencies located within
w the prrojects area of influence. The compaanys
public conssultation and engagement plan is built around
a the fo
ollowing comm
mitments:
Co
ompliance witth Peruvian leegislation regaarding commuunity consultaation and enggagement;
Implementation
n of a consulttation and co
ommunicationn plan in an open, honestt and transpaarent
maanner with neighboring po
opulations annd interest grroups to creeate an atmosphere of mutual
tru
ust;
Acctions based on onomic and cultural conteext in
o compreheensive undersstanding of thhe social, eco
whhich the mine is developed
d;
Co
ontributions to strength hening local social orgaanizations thhrough partticipation in the
devvelopment off the mine and in the activities that mayy affect them;; and
Engagement witth local commmunities throoughout the bbaseline study stage of the ESIA throuugh a
participatory monitoring
m program
p d the extennsion of this program throughout the
and
construction, operation and closure stagees.
To ensuree that the Co

ompany comm
municates efffectively, Shaahuindo SAC has establishhed the follo
owing
methods of
o communicaation and acceess to informaation:
Tw
wo public info
ormation officces, one at thee mine site annd one in thee town of Cajabamba;
Th
he developmeent and distrib
bution of projject informat ion;
Usse of local rad
dio to providee information
n about progrress of the miine;
Gu
uided tours of the project site; and
Infformative workshops.
20.4.4 Community
C y Developm
ment Program
The Comp
pany recognizzes its role and
a responsib
bility to contrribute to locaal sustainablee developmennt by
utilizing itss ability to mobilize technical and fiinancial reso
ources to suppport the im
mplementatio
on of
initiatives for
f local deveelopment during the construction and o
operational sttages of the m
mine.
The objecttives of the co

ommunity development prrogram includde:
Strrengthening the local productive

p capacities to generate o opportunitiess for alternative
mployment forr the population in the Dirrect Area of Influence;
em
Strrengthen tech
hnical capacitiies of the stakkeholders in tthe areas of influence;
Pro
oviding capaccity building initiatives
i to local organizzations and leeaders to bettter manage local
devvelopment initiatives in a transparent
t and
a participato ory manner; and

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Crreating and consolidating channels of coordinaation and ddialogue bettween the local
communities an
nd the mine.
The Comp
pany will focus its sustainab
ble developm
ment initiativess in the follow
wing areas:
Loocal Employment and Purcchase of Locaal Goods and Services. Training for lo ocal people w
within
thee Direct Areaa of Influencee in multifaceeted disciplinees and the puurchase of go
oods and servvices
fro
om local provviders.
Ecoonomic Pro oduction. Im mprovement to local pproductive ccapacities annd infrastruccture
(aggriculture, liveestock and fissh farming) an
nd the sustainnable managem
ment of foresst resources.
Sm
mall Business Development and Entrep
preneurship. Promotion o
of entrepreneeurship and ssmall
business prograams.
ocal Social Deevelopment. Work with
Lo h national, reegional and local levels oof governmennt to
implement projects aimed att training to im on and health.
mprove geneeral employabbility, educatio
Strrengthening Local
L Instituttions. Strenggthen the cappacity of local stakeholdeers, such as local
govvernments annd grassrootss organization
ns, among othhers.

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21.0 CAPITAL
C L AND OPERAT
O TING CO
OSTS
All capital and operatingg costs used in this study are
a in 2015 U
US dollars. W
Where costs w
will be incurreed in
Peruvian Nuevo
N Soles, an average conversion rate of 3.10 Soles per U
US dollar was used. Saless tax
(Impuesto General A Laas Ventas, IGV) is not inclu
uded in the ccapital or opeerating cost esstimates.
21.1 Capital
C Co
ost Estim
mate
21.1.1 List
L of Area
as
Project cap
pital and sustaaining capital for the Shahu
uindo projectt are divided into three prrimary areas:
Mine includess leach pad an

nd waste dum
mp constructio
on;
Plaant includess crushing, conveying and agglomeration

a n equipment and infrastruccture; and
Otther includees site infrastrructure, road

ds, land acquissition and cerrtain social prrojects.
21.1.2 Basis
B of Estimate
Capital co
osts for the Shahuindo
S prroject have been
b derived from constrruction contrracts currenttly in
place, contractor and vendor quottes, costs inccurred for si milar projectts at the La Arena mine and
engineeringg first princip
ples. Mine co
onstruction caapital costs (lleach pads annd waste dum
mps) are baseed on
contractuaal rates with the on-site mining
m contraactor. All mi ning equipmeent is assumeed owned byy the
contractorr and rented
d based on annual
a contraactual rates. These costts have beenn included inn the
operating expenses.
e Plant equipmen
nt for all areaas was estimaated, quoted, or purchased in 2015 do
ollars.
No growth
h allowance has
h been inclu
uded.
The cost associated

a with reclamatio
on and closurre is includedd in the cash flow model bbeginning in 22021
through 20
031. Mine op
perating costss include the cost of consttructing wastte piles and heap leach pilees to
slopes thatt facilitate reggrading at min
ne closure.
21.1.3 Capital
C Estiimate
Total capittal for the project is estiimated to bee $320.3 mill ion dollars bbeginning on 01 January 22016;
including construction
c capital of $17
79.6 million and
a $140.7 m
million in susttaining capitall. Anticipated
d life
of mine capital expendittures by yearr are shown in
n Table 21.1- 2.

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Table 21..1-1 Estimated Capital Expenditure
e Summary b
by Year (US$
$M)
2016 20
017 2018 2019 202
20 2021 2022 2023
3 2024 2
2025
Project Ca
apital
Mining 27.45 - - - - - - - - -
Process Plant 18.94 86
6.63 - - - - - - - -
Other 28.54 11.81 6.26 - - - - - - -
Sustaining Capital
Mining - 28
8.14 21.89 17.05 17..7 13.76 10.05 14.677 4.33 22.71
Process Plant & Other 0.34 4.3
4 2.79 1.24 0.338 0.37 0.17 0.27 0.26 00.25
Total Capital 75.27 13
30.88 30.94 18.29 18.0
08 14.13 10.23 14.94
4 4.59 2
2.97
Major com
mponent capittal expenditurres are summ
marized in Tabble 21.1-2.
Table 21.1-2
2 Majo
or Compone
ent Capital E xpenditures Life of Min
ne
Component US$M
Leaach Pad Construction (incl. rainccoats) 118.56
Waaste Dump Consstruction 32.24
Hau
ul Roads 0.66
Pro
ocess Plant (incl. stockpile constrruction) 28.30
Cru
ushing / Agglomeeration / Conveyyance 84.05
Waater Supply 0.18
Cam
mps, Offices, Co
ommunication Syystems 7.86
Wo
orkshops 6.26
Sub
bstation 11.46
Acccess Roads / Brid

dge Upgrade 11.41
Enggineering & Envirronmental Studiees 3.46
Lan
nd Purchases, Social Projects, Otther Capital 15.88
Tottal Capital Exp
penditures 3
320.31
21.2 Operating
O g Cost Esttimate
Operating costs were determined by quotes reeceived from the mining contractor, SSTRACON G
GyM,
actual opeerating costs incurred at the La Aren
na mine, enggineering firsst principles and managem
ment
experiencee at similar operations.
o Labor
L costs are
a included using a projeect specific sstaffing plan. The
average cash operating cost over thee life of the mine
m is estimaated to be $9..28 per ore to
onne.

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NI 43-101 Technical
T Repo
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The life off mine operatting costs sum
mmarized in Table
T 21.2-1 are the projeected costs ffor ore defineed as
oxide ore for leaching.
Table
e 21.2-1 Operating Cosst Summary
Operatin
ng Cost Value
e
Mining Cost
C ($/tonne mined) $1.91
Mining Cost
C ($/ ore tonne mined) $4.50
Process Plant Operatingg Cost ($/tonne processed)4 $2.55
General Administration ($/tonne processsed) $2.23
Operating costs were determined by

b year, with power conssumption andd operating costs increasinng in
2018 as a result of trransitioning from
f run of mine heap leaching to utilizing a crrush, convey and
agglomerattion system.
The operaating costs preesented are based

b upon th
he assumptio n that all majjor mining eqquipment is leeased
throughout the mine liffe. Maintenan
nce of leased equipment haas been includded.
Operating costs are preesented witho

out any added
d contingencyy or growth aallowances.
4
Includes $1.42
$ /tonne orre for crushingg and agglomerration beginningg in 2018

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NI 43-101 Technical
T Repo
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22.0 ECONOM
E MIC ANA
ALYSIS
The financial evaluation presents thee determinatio
on of the Neet Present Vallue (NPV), annd payback peeriod
(time in yeears to recaptture the capittal investmentt), and the Intternal Rate o
of Return (IRR
R) for the pro
oject.
Annual cassh flow projections were estimated
e oveer the life of the mine bassed on the esstimates of caapital
expenditurres, productio
on costs and sales revenu
ue. The saless revenue is based on thee production of a
gold/silver dor. The estimates
e of capital
c expenditures and ssite productio
on costs havee been develo
oped
specificallyy for this projeect and have been presentted in earlier sections of tthis report.
22.1 Mine
M Prod
duction Statistics
Mine production is reported as ore and overburden from thee mining operration. The aannual producction
figures werre obtained frrom the minee plan as repo
orted in Secti on 16.8 of thhis report.
The life of mine ore quaantities and grades

g are preesented in Taable 22.1-1.
Table 22.1-1 Life

L of Mine P
Production
Tonnes Contained
Gold Grade Silver Graade Contaiined Gold
Silver Ouncess
(000s) (g/t) (g/t) Ounce es (000s)
(000s)
Oxide Ore
O 110,890 0.53 6.86 1,898 24,465
Waste 149,855 - - - -
22.2 Process
P Plant Prod
duction Sttatistics
The oxidee ore will be
b processed
d using heap leaching ttechnology tto produce gold/silver d
dor.
Metallurgiccal recoveriess for gold and
d silver are:
Go
old 79% LO
OM Recoveryy (73% 2016-2
2017 / 80% 20018+)
Silvver 12% LO 017 / 12% 20 18+)
OM Recoveryy (7% 2016-20
The estimaated life of mine

m metal pro
oduction (i.e.,, metal in dorr) is estimatted to be 1.5004 million ouunces
of gold and
d 2.834 millio
on ounces of silver.
s

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NI 43-101 Technical
T Repo
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22.3 Capital
C Ex
xpenditurres
22.3.1 Project
P Cap
pital
The financcial indicatorss have been determined with 100% eequity financiing of the initial capital. Any
acquisition
n costs or expenditures prrior to 01 Jan
nuary 2016 hhave been treeated as sunk costs and have
not been in
ncluded in this analysis
The total project capitaal carried in the financial model for neew constructtion is expended over a tthree
od. The cash flow will be expended in
year perio n the year off first producction and certtain costs carrried
over into future yearss for major projects inccluding crushhing and agglomeration, substation annd a
maintenancce shop. Thee project capiital is presentted in Table 222.3-1.
Table 22.3-1 Project C

Capital
Project
P Capita
al US
S$M
Miining 2 7.5
Process Plant 1005.6
Otther 4 6.6
To
otal 179
9.70
22.3.2 Sustaining
S Capital
C
Capital co
ost expenditu
ures during the on period arre included in the financiial analysis under
t productio
Section 21.1.3. The tottal life of min
ne sustaining capital is estiimated to be $140.7 millio
on (Table 22..3-2).
This capitaal will be expeended over a ten year period.
Table
T 22.3-2 Sustaining
g Capital
Su
ustaining Capittal U
US$M
Mining 130.3
Proccess Plant & Oth

her 10.4
Total 1
140.7
22.3.3 Working
W Ca
apital
A ten day delay of receeipt of revenue from saless is used for accounts recceivable. A delay of paym
ment
for accoun
nts payable off 30 days is also incorporaated into the financial moddel. All of thhe working caapital
is recapturred at the end
d of the mine life and the final
f value of tthese accounnts is $0.

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Shahuindo Mine,
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NI 43-101 Technical
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22.4 Salvage
S Value
No allowance has been made for salvage value off the capital eequipment forr this analysis..
22.5 Revenue
R
Annual revvenue is deteermined by ap

pplying estimated gold andd silver pricees to the annual payable m
metal
estimated for each opeerating year. Escalating meetal prices, ass shown in Table 22.5-1, hhave been applied
to the life of mine prod
duction witho
out hedging. The revenu e is the gross value of paayable metals sold
before refiining and tran
nsportation ch
harges.
Tab
ble 22.5-1 Gold and Silvver Prices
LOM
Metal 2016 201
17 20
018 2019 - 2025
Average
Gold
d $/troy ounce $1,100
0 $1,2
200 $1 ,300 $1,400 $1,340
Silveer $/troy ounce $14.75

5 $17..25 $220.00 $23.50 $21.65
22.6 Shipping
S and
a Refining
The gold and
a silver dorr will be ship
pped to a preecious metal refinery withh refining charrges negotiabble at
the time of
o agreement. Costs are esstimated at $4.50
$ per ounnce of gold, ssimilar to thee refining contract
in place at the La Arenaa mine. Therre are no refin
ning charges ffor silver per se, as silver iis used as a credit
against dorr treatment charges. Reffining charges over the lifee of mine are estimated att $0.06 per to
onne
of ore. Reefining terms used in the financial analyssis are shownn in Table 22.66-1.
Table 22
2.6-1 Gold
d and Silver R
Refining Term
ms
Dor Refining
R Termss
Payable Gold 99.9%

%
Payable Silver 99.5%

%
22.7 Operating
O g Costs
The averagge Cash Opeerating Cost over the lifee of the minee is estimatedd to be $9.228 per ore to
onne.
Cash Opeerating Cost includes min
ne operationss, process plaant operations and general administrrative
costs. Tab
ble 22.7-1 shows the estim
mated operatting cost by aarea per tonne of ore plaaced on the lleach
pad.

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Shahuindo Mine,
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NI 43-101 Technical
T Repo
ort

Table 22.7-1 Life
e of Mine Op
perating Costt
Cassh Operating Cost

C $/ore tonne
Mine $4.50
Processs Plant $2.55
Generaal Administration
n $2.23
Total Operating
O Cost $9.28
22.8 Total
T Cash Cost
The averagge Total Cash Cost over the life of th
he mine is esttimated to bee $9.83 per o
ore tonne. T
Total
Cash Costt consists of Operating
O Co
ost plus workker profit shaare and certain productionn taxes whichh are
calculated at $0.55 per ore tonne.
22.8.1 Worker
W Pro
ofit Share and
a other production
n taxes
Mining com
mpanies in Peeru are obligged to pay workers
w a parrticipation of 8% on the nnet profits off the
company (Shahunido
( SA
AC) up to a maximum
m of 18 times basee salary. Thee amount is ppermitted as a tax
deduction in calculatingg corporate income
i tax. The Worke r Profit Sharre and other production ttaxes
are estimatted at $60.6 million over the
t life of min
ne.
22.8.2 Reclamatio
R n and Clossure
Non-cash accretion expense in the amount of $24.0
$ million over the life of mine has been includeed in
d will impact net earnings. A cash flow
the financial model and w estimate off $37.4 million for reclamaation
and closure was includeed in the worrking capital adjustment.
22.8.3 Depreciatio
D on
Depreciation is calculaated using the
t units of production method andd may not correlate to the
on taken for tax purposess. The projectt capital and ssustaining cappital used a uunit of producction
depreciatio
method baased on gold ounces
o produ
uced.
22.8.4 Taxation
T
Income tax
x is calculated at rates su nacted and appplied to thee net taxable income, which is
ubstantially en
computed by subtractin
ng the allowab
ble deduction
ns and carry fo
forward lossees from revennues.
The financcial model inccludes corporrate income taxes

t at a 288% (2015-2016), 27% (2017-2018) and 26%
(2019-end of mine life) rate on taxab
ble income.

Pagee233
Shahuindo Mine,
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NI 43-101 Technical
T Repo
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The Comp
pany is also subject
s to a Special Minin
ng Tax (SMT
T) and Modifiied Mining R
Royalty (MMR
R), as
discussed in
i detail in Seection 4.6. The
T SMT is ap
pplied on opeerating income based on a sliding scale with
progressive marginal raates ranging frrom 2% to 8.4
4%. The MMR
R is applied bbased on a sliding scale rannging
from 1% to nst operatingg income butt may not b e lower thann 1% of the companys sales
t 12% again
revenues. The SMT and
d MMR have been included in Income ttax for the puurposes of this study.
Cash incom
me taxes paid
d are estimateed to be $196
6.2 million ovver the life of mine.
Deferred income taxees are estim

mated based on the diffference betw
ween deprecciation takenn for
accountingg and tax purrposes. The substantiallyy enacted taxx rate is thenn applied to the differencce to
create the deferred tax
x expense (beenefit). The deferred taxx benefit is esstimated at $
$12.7 million over
the mine liife.
22.9 Project
P Financing
The projecct was evaluatted on an unlleveraged and
d un-inflated bbasis.
22.10 Net
N Incom
me After Tax
Net Incom
me after Tax amounts
a to $338.6 million..
22.11 NPV
N and IRR
The econo
omic analysis indicates thaat the projectt has an Inte rnal Rate of Return (IRR)) of 40.6% w
with a
payback peeriod of 4.1 years
y after tax
xes. See Tablee 22.11-1.
Table 22.11-1
2 Eco
onomic Indicaators (US$M
M)
Economic
E Indiicators Before Taxess Afterr Taxes
NP
PV @ 5% $462,203 $3188,863
IRR
R - 400.6%
Payyback - 4.1 yyears
22.12 Sensitivit
S ies
Table 22.12-1 through Table 22.12--4 compare the
t base casee project afteer tax financiaal indicators with
the financial indicators when different variables are
a applied. V
Variables included in the ssensitivity anaalysis
include ch
hanges to metal prices, operating co
ost, capital eexpenditures,, and metalllurgical recovvery.
Changes in metal prices have the most impact on the pro
oject econom
mics, followeed by changees to
operating cost.
c

Pagee234
Shahuindo Mine,
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NI 43-101 Technical
T Repo
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Table 22.12-1 NPV Sensitivity Analyysis on Metall Prices
Change in Metal Prices

P NPV
V @ 0% NP
PV @ 5% N
NPV @ 10% IRR% Payback
+20% $72
23,045 $508,619 $362,690 67.7% 3.3
+10% $59
97,309 $413,960 $289,289 53.1% 3.6
Base Case $47
71,200 $318,863 $215,413 40.6% 4.1
-10% $34
42,701 $221,333 $139,143 29.0% 4.8
-20% $20
02,022 $113,741 $54,457 17.1% 6.1
Ta
able 22.12-2 NPV Sensittivity Analysiis on Operatting Cost
Change in Opera
ating
NPV
V @ 0% NP
PV @ 5% N
Cost
+20% $34
48,725 $225,158 $141,508 29.0% 4.9
+10% $411,022 $273,026 $179,417 34.8% 4.4
Base Case $47

71,200 $318,863 $215,413 40.6% 4.1
-10% $53
30,361 $363,820 $250,632 46.7% 3.8
-20% $58
88,728 $407,955 $285,031 53.1% 3.6
Table
T 22.12-3
3 NPV Senssitivity Analyysis on Total Capital
Change
C in Capiital NPV
V @ 0% NP
PV @ 5% N
+20% $40
09,200 $263,661 $165,625 29.1% 4.8
+10% $44
40,142 $291,213 $190,477 34.2% 4.5
Base Case $47

71,200 $318,863 $215,413 40.6% 4.1
-10% $50
02,354 $346,596 $240,419 49.0% 3.7
-20% $53
33,592 $374,233 $265,224 60.2% 3.4
Table 22.12
2-4 Sensitiviity Analysis o
on Metal Reccovery
Ch
hange in Recov
very NPV
V @ 0% NP
PV @ 5% N
+2% $50
08,599 $347,156 $237,466 44.2% 3.9
+1% $48
89,905 $333,014 $226,443 42.4% 4.0
Base Case $47

71,200 $318,863 $215,413 40.6% 4.1
-1% $45
52,456 $304,682 $204,358 38.9% 4.2
-2% $43
33,662 $290,459 $193,265 37.2% 4.3

Pagee235
Shahuindo Mine,
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NI 43-101 Technical
T Repo
ort

22.13 Shahuind
S o Financiial Model
The life of mine base case assump

ptions for thee Shahuindo financial mo
odel are summarized in T
Table
22.13-1. The
T detailed liife of mine fin
nancial modell is included inn Table 22.133-2.
Table
T 22.13-1 LOM Base
e Case Summ
mary - Assum
mptions
Productio
on Statistics Base Case
Mine
Ore (kto
onnes) 110,890
Gold Graade (g/t) 0.53
Silver Grrade (g/t) 6.86
Containeed Gold (kozs) 1,900
Containeed Silver (kozs) 24,470
Waste (kktonnes) 149,855
Total To
onnes Mined (kto
onnes) 260,745
Processin
ng
Ore Placced on Pad (kton
nnes) 110,890
Gold Pro
oduction (kozs recovered)
r 1,504
Silver Pro
oduction (kozs recovered)
r 2,834
Gold Reccovery 79%
Silver Reecovery 12%
Revenuess, Capital Costt & Operating Cost
Revenuees ($000) $2,110,507
Project Capital
C ($000) $179,629
Sustainin
ng Capital ($000)) $140,676
Mining Cost
C ($/tonne mined) $1.91
Mining Cost
C ($/ore tonn
ne mined) $4.50
Process Plant Operatingg Cost ($/tonne processed) $2.55
General Administration ($/tonne processsed) $2.23
Treatmeent & Transportaation Charges ($
$/tonne process ed) $0.06
Total Op
perating Cost ($
$/tonne processeed) $9.28
Economic
c Indicators be
efore Taxes
NPV @ 0% ($000) $667,385
NPV @ 5% ($000) $462,203
NPV @ 10% ($000) $322,836
Economic
c Indicators aft
fter Taxes
NPV @ 0% ($000) $471,200
NPV @ 5% ($000) $318,863
NPV @ 10% ($000) $215,413
IRR 40.6%
Payback (yrs) 4.1

Pagee236
Shahuindo
o Mine, Peru
NI 43-101 Technical Reportt
Table 22.13-2 Shahuindo Life of Mine

e Financial Modeel
Base Case Total 2016 2017 2018 201
19 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2
2030 2031 203
32
Mining Operatio
ons
Ore
Beginning Inve
entory (kt) 110,890 110,890 105,133 99,531 8
89,242 75,830 62,79
91 50,439 34,374 19,969 7,236 - - - - - - -
Mined (kt) 110,890 5,756 5,602 10,289 13,412 13,039 52
12,35 16,066 14,405 12,732 7,236 - - - - - - -
ory (kt)
Ending Invento - 105,133 99,531 89,242 7
75,830 62,791 50,43
39 34,374 19,969 7,236 - - - - - - - -
Gold Grade (g//t) 0.53 0.68 0.54 0.64 0.48 0.48 51

0.5 0.50 0.59 0.52 0.49 - - - - - - -
Silver Grade (g
g/t) 6.86 5.95 5.73 7.24 6.45 7.05 47
6.4 7.79 7.16 6.36 7.30 - - - - - - -
Contained Gold (kozs) 1,900 126 97 212 206 200 01

20 258 273 215 113 - - - - - - -
ver (kozs)
Contained Silv 24,470 1,102 1,032 2,395 2,779 2,954 68
2,56 4,023 3,314 2,606 1,698 - - - - - - -
Waste
Beginning Inve
entory(kt) 149,855 149,855 144,901 140,789 118,954 100,059 80,813 60,921 44,525 28,603 11,106 - - - - - - -
Mined (kt) 149,855 4,954 4,113 21,835 18,895 19,246 93
19,89 16,395 15,922 17,497 11,106 - - - - - - -
Ending Invento
ory (kt) - 144,901 140,789 118,954 00,059
10 80,813 60,92
21 44,525 28,603 11,106 - - - - - - - -
Total Material Mined (kt) 260,745 10,710 9,715 32,124 3

32,306 32,285 32,24
45 32,461 30,327 30,230 18,342 - - - - - - -
Waste to Ore Ratio
R 1.35 0.86 0.73 2.12 1.41 1.48 1.6
61 1.02 1.11 1.37 1.53 - - - - - - -
Leach Pad Ope erations

Beginning Ore
e Inventory (kt) - - - - - - - - - - - - - - - - - -
Ore Placed on
n Pad 110,890 4,446 6,022 11,179 13,000 13,039 52
12,35 13,140 13,140 13,140 11,431 - - - - - - -
Mined Ore - Processed (kt) 110,890 4,446 6,022 11,179 13,000 13,039 52
12,35 13,140 13,140 13,140 11,431 - - - - - - -
ventory
Ending Ore Inv - - - - - - - - - - - - - - - - -
Gold Grade (g//t) 0.53 0.79 0.52 0.60 0.48 0.48 51

0.5 0.55 0.62 0.52 0.41 - - - - - - -
Silver Grade (g
g/t) 6.86 6.59 5.63 6.84 6.56 7.05 47
6.4 8.52 7.44 6.30 6.28 - - - - - - -
Contained Gold (kozs) 1,898 113 101 216 202 200 01

20 233 262 218 151 - - - - - - -
ver (kozs)
Contained Silv 24,465 942 1,090 2,458 2,741 2,954 68
2,56 3,599 3,143 2,663 2,308 - - - - - - -
Dore
Recovery Gold
d (%) 79% 73.00% 73.00% 80.00% 8
80.00% 80.00% 80.00
0% 80.00% 80.00%
% 80.00% 80.00% - - - - - - -
Recovery Silve
er (%) 12% 7.00% 7.00% 12.00% 12.00% 12.00% 12.00
0% 12.00% 12.00%
% 12.00% 12.00% - - - - - - -
Recovered Gold (kozs) 1,504 83 74 173 162 160 16

61 187 210 175 121 - - - - - - -
ver (kozs)
Recovered Silv 2,834 66 76 295 329 354 08
30 432 377 320 277 - - - - - - -
Payable Metals
Dore
Payable Gold (kozs) 1,502 83 74 173 162 160 61
16 186 209 174 121 - - - - - - -
Payable Silverr (kozs) 2,823 68 76 293 327 353 07
30 430 375 318 276 - - - - - - -

Page237
237
Shahuindo
o Mine, Peru
Table 22.13-2 (continued) Shahuindo Life

e of Mine Financiial Model
Base Case Total 2016 2017 2018 201
19 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2
2030 2031 203
32
ent ($000)
Income Stateme
Gold ($/oz) $ 1,362.17 $ 1,100.00 $ 1,200.00 $ 1,300.00 $ 1,4

400.00 $ 1,400.00 $ 1,400.0
00 $ 1,400.00 $ 1,400.00 $ 1,400.00 $ 1,400.00 $ 1,400.00 $ 1,400.00 $ 1,400.00 $ 1,400.00 $ 1,400.00 $ 1,400.00 $ 1,4
400.00
Silver ($/oz) $ 22.76 $ 14.75 $ 17.25 $ 20.00 $ 23.50 $ 23.50 $ 23.5
50 $ 23.50 $ 23.50 $ 23.50 $ 23.50 $ 23.50 $ 23.50 $ 23.50 $ 23.50 $ 23.50 $ 23.50 $ 23.50
Revenues
Dore - Au $ 2,046,275 $ 90,758 $ 88,794 $ 224,564 $ 22
26,231 $ 223,841 $ 224,94
45 $ 260,846 $ 293,070 $ 244,246 $ 168,978 $ - $ - $ - $ - $ - $ - $ -
Dore - Ag $ 64,232 $ 1,005 $ 1,310 $ 5,869 $ 7,690 $ 8,288 $ 7,20
05 $ 10,098 $ 8,819 $ 7,473 $ 6,475 $ - $ - $ - $ - $ - $ - $ -
Total Revenues $ 2,110,507 $ 91,763 $ 90,104 $ 230,433 $ 33,921 $
23 232,129 $ 232,15
50 $ 270,944 $ 301,889 $ 251,720 $ 175,454 $ - $ - $ - $ - $ - $ - $ -
Operating Cost
Mining $ 498,640 $ 28,239 $ 21,127 $ 61,726 $ 7
70,227 $ 59,381 $ 54,37
72 $ 64,858 $ 60,469 $ 52,960 $ 25,282 $ - $ - $ - $ - $ - $ - $ -
Process Plant $ 282,711 $ 7,820 $ 9,637 $ 29,638 $ 3
34,408 $ 34,509 $ 32,714 $ 34,774 $ 34,558 $ 34,558 $ 30,098 $ - $ - $ - $ - $ - $ - $ -
General Adminisstration $ 247,358 $ 23,399 $ 18,949 $ 24,939 $ 2
24,550 $ 25,306 $ 26,77
78 $ 28,524 $ 27,754 $ 27,902 $ 19,257 $ - $ - $ - $ - $ - $ - $ -
Treatment & Re
efining Charges $ 6,760 $ 371 $ 333 $ 777 $ 727 $ 719 $ 72
23 $ 838 $ 942 $ 785 $ 543 $ - $ - $ - $ - $ - $ - $ -
Total Operating Cost
C $ 1,035,469 59,828 50,046 117,080 12
29,912 119,915 114,58
87 128,994 123,722 116,204 75,180 - - - - - - -
Production Taxe
es & Profit Share $ 60,842 $ 3,056 $ 1,535 $ 6,828 $ 5,783 $ 6,058 $ 06 $
6,40 9,087 $ 11,277 $ 7,416 $ 3,397 $ 0 $ - $ - $ - $ - $ - $ -
Reclamation Acccretion (non-cash) $ 24,038 $ 2,577 $ 1,386 $ 1,455 $ 1,528 $ 1,604 $ 1,68
84 $ 1,769 $ 1,848 $ 1,940 $ 2,028 $ 2,050 $ 1,251 $ 1,145 $ 893 $ 758 $ 122 $ -
Total Production Cost
C $ 1,120,349 $ 65,461 $ 52,967 $ 125,363 $ 37,222 $
13 127,578 $ 122,67
77 $ 139,850 $ 136,848 $ 125,560 $ 80,605 $ 2,050 $ 1,251 $ 1,145 $ 893 $ 758 $ 122 $ -
Operating Incom
me $ 990,158 $ 26,302 $ 37,137 $ 105,070 $ 9
96,699 $ 104,551 $ 109,47
73 $ 131,094 $ 165,042 $ 126,159 $ 94,849 $ (2,050) $ (1,251) $ (1,145) $ (893) $ (758) $ (122) $ -
Project Capital Depreciation

D $ 260,431 $ 5,571 $ 9,161 $ 30,668 $ 2
29,713 $ 29,426 $ 29,55
59 $ 33,875 $ 37,749 $ 31,879 $ 22,830 $ - $ - $ - $ - $ - $ - $ -
Sustaining Capital Depreciation $ 140,676 $ 1,355 $ 2,169 $ 7,383 $ 8,853 $ 10,376 $ 14,114 $ 17,166 $ 19,287 $ 16,074 $ 11,120 $ - $ - $ - $ - $ - $ - $ -
n
Total Depreciation $ 401,107 $ 6,926 $ 11,330 $ 38,051 $ 3
38,566 $ 39,802 $ 43,67
72 $ 51,041 $ 57,036 $ 47,953 $ 33,950 $ - $ - $ - $ - $ - $ - $ -
Net Income After Depreciation $ 589,050 19,375 25,807 67,019 $ 5

58,133 $ 64,749 $ 65,80
01 $ 80,053 $ 108,006 $ 78,206 $ 60,898 $ (2,050) $ (1,251) $ (1,145) $ (893) $ (758) $ (122) $ -
Tax Loss Carry Forward $ (66,985) (19,375) (15,870) (15,870) (15,870) - - - - - - - - - - - - -
Taxable Income $ 522,065 $ - $ 9,937 $ 51,149 $ 4
42,263 $ 64,749 $ 65,80
01 $ 80,053 $ 108,006 $ 78,206 $ 60,898 $ (2,050) $ (1,251) $ (1,145) $ (893) $ (758) $ (122) $ -
Current Income Taxes $ 196,186 2,198 2,492 20,106 15,499 21,072 50

22,45 32,926 41,732 26,278 11,432 - - - - - - -
Deferred Income
e Taxes $ (12,740) 720 2,479 (3,598) (
(1,281) (926) (1,80
08) (3,506) (4,918)) (2,099) 2,197 - - - - - - -
Total Taxes $ 183,445 $ 2,918 $ 4,971 $ 16,508 $ 14,218 $ 20,146 $ 42 $
20,64 29,420 $ 36,814 $ 24,179 $ 13,628 $ - $ - $ - $ - $ - $ - $ -
er Taxes
Net Income Afte $ 338,620 $ (2,918) $ 4,966 $ 34,641 $ 2
28,045 $ 44,603 $ 45,15
58 $ 50,633 $ 71,192 $ 54,027 $ 47,270 $ (2,050) $ (1,251) $ (1,145) $ (893) $ (758) $ (122) $ -

Page238
238
Shahuindo
o Mine, Peru
Table 22.13-2 (continued) Shahuindo Life

e of Mine Financiial Model
Base Case Total 2016 2017 2018 201
19 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2
2030 2031 203
32
Cash Flow
me
Operating Incom $ 990,158 $ 26,302 $ 37,137 $ 105,070 $ 9
96,699 $ 104,551 $ 109,47
73 $ 131,094 $ 165,042 $ 126,159 $ 94,849 $ (2,050) $ (1,251) $ (1,145) $ (893) $ (758) $ (122) $ -
Working Capitall
Accounts Pay able (30 days) $ 4,261 $ (804) $ 5,510 $ 1,055 $ (822) $ 38) $
(43 1,196 $ (444)) $ (607) $ (3,279) $ (197.62) $ (5,872) $ 170 $ (165) $ 587 $ (657) $ (150)
IGV $ (5,320) $ (16,693) $ 14,380 $ 15,688 $ 4,978 $ 27) $
(1,22 (388) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Closure Costs (Cash) $ - $ - $ - $ - $ - $ (3) $ (146) $ (15)) $ (146) $ (1,277) $ (14,224) $ (2,607) $ (4,678) $ (2,672) $ (9,818) $ (1,829) $ -
Total Working Capital
C (1,059) (17,497) 19,889 16,742 4,156 68)
(1,66 662 (459)) (753) (4,556) (14,422) (8,479) (4,508) (2,837) (9,231) (2,486) (150)
Capital Expenditu
ures
Project Capital
Mine $ 27,452 $ 27,452 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Process Plant $ 105,568 $ 18,943 $ 86,625 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Other $ 46,609 $ 28,537 $ 11,811 $ 6,261 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Sustaining Capital
Mining $ 130,305 $ - $ 28,140 $ 21,890 $ 17,045 $ 17,696 $ 62 $
13,76 10,052 $ 14,674 $ 4,332 $ 2,713 $ - $ - $ - $ - $ - $ - $ -
Process Plant & Other $ 10,372 $ 338 $ 4,301 $ 2,787 $ 1,240 $ 382 $ 68 $
36 174 $ 266 $ 262 $ 254 $ - $ - $ - $ - $ - $ - $ -
enditures
Total Capital Expe $ 320,306 $ 75,270 $ 130,877 $ 30,937 $ 18,285 $ 18,078 $ 30 $
14,13 10,226 $ 14,941 $ 4,594 $ 2,967 $ - $ - $ - $ - $ - $ - $ -
Cash Flow before

e Taxes $ 667,235 $ (47,451) $ (109,852) $ 95,477 $ 9
96,684 $ 92,233 $ 95,35
59 $ 123,299 $ 151,491 $ 122,752 $ 89,354 $ (14,422) $ (8,479) $ (4,508) $ (2,837) $ (9,231) $ (2,486) $ (150)
Taxes
Current Income Taxes $ 196,186 $ 2,198 $ 2,492 $ 20,106 $ 15,499 $ 21,072 $ 50 $
22,45 32,926 $ 41,732 $ 26,278 $ 11,432 $ - $ - $ - $ - $ - $ - $ -
Cash Flow after Taxes

T $ 471,049 $ (49,649) $ (112,344) $ 75,371 $ 8
81,185 $ 71,161 $ 72,90
09 $ 90,373 $ 109,759 $ 96,474 $ 77,923 $ (14,422) $ (8,479) $ (4,508) $ (2,837) $ (9,231) $ (2,486) $ (150)
Cummulative Cassh Flow after Taxes $ (49,649) $ (161,993) $ (86,622) $ (
(5,436) $ 65,725 $ 138,63
33 $ 229,006 $ 338,765 $ 435,239 $ 513,161 $ 498,740 $ 490,261 $ 485,753 $ 482,916 $ 473,685 $ 471,200 $ 71,049
47
Payback (Years) 1 1 1 1 0 - - - - - - - - - - - -
Economic Indicators before Taxes

NPV @ 0% 0% $ 667,385
NPV @ 5% 5% $ 462,203
NPV @ 10% 10% $ 322,836
Economic Indicators after Taxes

NPV @ 0% 0% $ 471,200
NPV @ 5% 5% $ 318,863
NPV @ 10% 10% $ 215,413
IRR 40.6%
Payback ars
4.1 yea
Total Cash Cost per

p Ounce $686.35 $749.24 $678.71 $682.65 791.34
$7 $735.32 $707.4
48 $686.22 $602.16 $665.08 $596.77
Operating Cost pe
er Tonne Ore 110,890 5,756 5,602 10,289 13,412 13,039 12,35
52 16,066 14,405 12,732 7,236
Mining $4.50 $4.91 $3.77 $6.00 $5.24 $4.55 40
$4.4 $4.04 $4.20 $4.16 $3.49
Process Plant $2.55 $1.36 $1.72 $2.88 $2.57 $2.65 $2.6
65 $2.16 $2.40 $2.71 $4.16
General Administration $2.23 $4.06 $3.38 $2.42 $1.83 $1.94 $2.17 $1.78 $1.93 $2.19 $2.66
Refining $0.06 $0.06 $0.06 $0.08 $0.05 $0.06 06
$0.0 $0.05 $0.07 $0.06 $0.08
Total $9.28 $10.33 $8.87 $11.30 $9.63 $9.14 $9.2
22 $7.98 $8.52 $9.07 $10.31
Mining Cost per Tonne

T Mined $ 1.91 $ 2.64 $ 2.17 $ 1.92 $ 2.17 $ 1.84 $ 1.6
69 $ 2.00 $ 1.99 $ 1.75 $ 1.38

Page239
239
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

23.0 ADJACEN
A NT PRO
OPERTIES
S
Other than prospects in
i the area previously exp
ploited by infformal minerss (as discusseed in this repport),
the Compaany is not aw
ware of any miineral properrties adjacent to the Shahuuindo Project..

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Shahuindo Mine,
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T Repo
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24.0 OTHER
O RELEVA
R NT DAT
TA AND INFORM
MATION
N
24.1 Construct
C tion and Mining
M Ac
ctivities tthrough 0
01 January
y 2016
24.1.1 Constructio
C on
Infrastructure and facillities constru
uction to sup
pport mining operations aat Shahuindo
o began in M
March
2015. Construction activity was sufficiently advanced to o support pplant commisssioning and the
commenceement of Phasse 1 mining operations
o in the
t fourth quuarter of 20155.
24.1.1.1 Access Ro
oad
A new acccess road to the
t Shahuindo
o mine site was
w constructted to accom
mmodate truckks and equipm
ment
required fo
or project co
onstruction. This involved
d constructio n of a new tw
wo kilometerr road to linkk the
existing acccess to the preexisting road. The preexisting ro
oad was regrraded and widened to ennable
tanker truccks and low-b
bed trucks acccess to the site
s with mateerials and equuipment. Thee access road
d was
completed
d in May 2015
5, which sign
nificantly redu
uced travel tiime to the pproject site aand impact to
o the
townships of Chuquibaamba, Araqueda & Pampachancas reggarding dust, interaction with pedestrrians,
schools, an
nimals and loccal vehicle traaffic.
Figure
e 24.1-1 Acc
cess Road Im
mprovementss
24.1.1.2 Water Sto
orage Pond
A water sttorage pond with a capaccity of 18,000
0 m3 was com
mpleted in June 2015 to ccapture and sstore
water from
m a local sprin
ng for use during plant com
mmissioning aand operation. A water w
well will be drrilled
and constrructed in earrly 2016 to provide
p a con
nstant sourcee of inflow to
o the pond. Water from
m this
pond will be
b distributed
d to the plantt, camp facilities and otherr areas of the operation.

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Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

Fig
gure 24.1-2 Water Storrage Pond
24.1.1.3 Haul Road
ds
Two haul roads to facilitate the co
ommencemen
nt of mining o
operations w
were completted in the seccond
quarter of 2015. The first haul road
d connects the Phase 1 staarter pit to thhe ROM leachh pad (Pad 1)); the
second roaad was built to
t move min
ne waste from
m the starter pit to the baase of the futture second lleach
pad, wheree the foundattion for the pad is currentlly under consstruction. Thhese two haul roads were built
to accomm
modate the sttart of mining operations, with
w each roaad having a 122 meter operrational widthh and
maximum grade of 12%
%. These road
ds will be wid
dened in 20177 to accommo
odate the larrger fleet requuired
for Phase 2 operationss; the steepeer sections at the bottom
m of the valley will have been eliminated,
he maximum grade to 10%
reducing th %.
Figure 24.1-3 Haul

H Road Co
onstruction

Pagee242
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

24.1.1.4 Camp and
d Office Fac
cilities
Constructiion of new camp and officce facilities to
o support Ph ase 1 operattions began inn June 2015. The
existing ex
xploration caamp will be decommission
d ned, with som
me of the buuildings reloccated to the new
camp and others
o provid
ded to the loccal San Jose community.
c T
The location of the new ccamp, close to
o the
project enttrance, also serves
s to redu
uce the interaaction betweeen mine traffiic and local community traaffic.
The new camp

c includees five workfforce personn
nel modules with 16 roo
oms each, onne staff perso
onnel
module with 16 rooms and two barracks modulees for security
ty staff. Consstruction of these facilitiess was
completed
d in late Novvember 2015
5, with electrricity, water, and sewage facilities insttalled. An o
office
building, kiitchen and din
ning facilities, medical centter and traininng room will be constructted in early 20016.
Figure 24.1-4
2 New Camp unde r Construction
Fig
gure 24.1-5 Sewage Tre
eatment Plan
nt under Con
nstruction

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Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

A second phase of cam
mp constructtion is planneed for 2017 tto accommoddate the incrreased workfforce
or Phase 2 op
required fo perations scheeduled to beggin in 2018.
24.1.1.5 Explosive Magazine

The explosives magazin
ne facility inclludes one 60 tonne emulssion silo and two containeers for explo
osives
and accesssories suitablee for commisssioning activvities. An addditional two silos will be in added in 22106,
with anoth
her three siloss erected in 2017
2 prior to
o Phase 2 opeerations.
Figure 24.1-6 Emulsio

on Silo
(MMU truck in
n foreground; explosives
e conntainer in backgground)
24.1.1.6 Temporarry Worksho

op
A temporrary relocataable worksho
op was constructed in the third qquarter of 22015 to suppport
constructio
on activities and mining operations during the ffirst two yeaars of produuction. A m
more
expansive permanent truck
t shop iss planned forr 2017 to su pport the larrger equipmeent necessaryy for
perations in 2018.
Phase 2 op 2

Pagee244
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

Figure 24.1-7 Temporary Workshop

p under Construction
24.1.1.7 Fuel Farm
m
Constructiion of the Phase
P 1 fuel farm
f facilitiess, consisting of two 60,0000 gallon capacity tanks, was
completed
d in the fourrth quarter of
o 2015. Up
pon inspectio
on and appro
oval from MEEM, the faciliity is
expected to
t be operattional in early 2016. Exp
pansion of thhe fuel farm to 240,000 gallon capaciity is
scheduled for 2017.
Figure 24.1-8
2 Fuel Farm underr Constructio
on

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Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

24.1.1.8 Leach Pad
d 1A
The pilot leach pad (Paad 1A) was constructed
c in the secondd half of 20155. The pad hhas an area o
of 18
hectares and
a will accom
mmodate app
proximately four
f million ttonnes of oree; after whichh constructio
on of
the second
d ROM leach
h pad (Pad 2A)
2 will be completed.
c T he site was chosen based
d on the relative
simplicity of
o constructio
on (level grou
und) and prox
ximity to the process plantt and starter pit.
Figure 24
4.1-9 Leach Pad 1A unde
er Constructtion
Figu
ure 24.1-10 Leach
L Pad 1A
A completed with Collecttion Piping

Pagee246
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

Figure
F 24.1-11 Leach Pad
d 1A with Ove
erliner Being
g Placed
24.1.1.9 Lime storrage Shed

A lime sto o 500 tonnes was compleeted in Noveember 2015. The structuure is
orage shed with capacity of
necessary to keep thee lime dry during
d the raainy season aand is a reqquirement fo
or the storagge of
controlled substances in
n Peru. The lime storage shed
s was buillt adjacent to pad 1where the lime is m
mixed
with the ore to maintain the cyanidee solution at an
a optimal pH
H.
Fiigure 24.1-12
2 Lime Storaage Shed
24.1.1.10 ADR Plan

nt and PLS Pond
P
Process pllant and pregnant leach solution (PLSS) pond connstruction forr the Phase 1 operation was
completed
d and commisssioned in Deecember 2015
5. Ongoing w
work into 20016 includes tthe installatio
on of
additional carbon colum
mns to increaase the adsorption capacityy to 24,000 ttpd, with conntinuing expannsion
in 2017 to increase capacity to the Phase
P 2 produ
uction rate off 36,000 tpd.

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Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

Figure 24.1-13 ADR Plan

nt
4.1-14 PLS P ond

Figure 24
Figurre 24.1-15 ADR

A Plant and
d PLS Pond

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Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

24.1.1.11 Leach Pad
d 2B
The Phasee 2 leach paad (pad 2B) is located in a valley to the soutth/southwest of the pad 1A.
Approximaately five million cubic meeters of compacted fill wiill be placed as a foundattion to insuree the
stability of
o the pad. The foundaation is bein
ng constructted using suitable materrial derived ffrom
constructio
on activities and
a waste rock from the starter
s pit. T
The foundatio
on is scheduleed for compleetion
in mid-2017 to enable pad
p constructtion to be co
ompleted to rreceive ore frrom Phase 2 mining. A seccond
PLS pond and
a storm event pond willl be constructted downstreeam of the paad.
Figure
e 24.1-16 Lea
ach Pad 2B Foundation
F aand Sub-Drain Excavation
n

Pagee249
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

Figure 24.1-17 Leach Pa

ad 2B Foundaation Constrruction
24.1.2 Mine
M and Plant Comm
missioning
Mining of the starter pit commen
nced in earlyy November 2015. At the end of December 22015,
approximaately 184,000 tonnes with an average grade
g of 1.05 g/t Au had bbeen mined ffrom the pit, with
164,000 off these tonnes placed on the ROM pad..
Commissio
oning of the Pad 1A irrigation system began in mid-Decembber 2015, wiith process plant
commissio
oning initiated
d in the second half of December 20115. The Shahuindo mine poured its initial
dor contaaining 581 ou
unces of gold and 347 ounces of silver on 22 Decem
mber 2015. A
All commissio
oning
activities are
a proceedin
ng on schedule and the Company
C anticcipates reachhing commerccial productio
on in
the second
d quarter of 2016.
2

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Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

Figure
e 24.1-18 Schematic of Starter
S Pit, R
ROM Pad and
d Haul Roadss
AD
DR Plant
ROM Padd 1A
Starter Pitt
Figurre 24.1-19 Overview of Sttarter Pit, RO

OM Pad and Haul Roads
w to the NE)
(View

Pagee251
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

Figure 24.1-20 Initial Drill

D Pattern Novemberr 2015
Figure 24.1--21 Ore Plac

ce on Pad 1A
A December 2015
Figure
e 24.1-22 Pa
ad 1A Irrigation Commisssioning Deccember 2015
5

Pagee252
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

24.2 Exploratio
E on Potenttial
Multiple ex
xploration taargets have been
b identified in the Sha huindo distriict based on surface mappping,
rock-chip and soil surrveys, geophyysical surveyss and drillingg. These pro
ospects incluude San Loreenzo,
Choloque, Shahuindo Southeast
S Exttension, El Saauce, La Chilcca, Azules, Allgamarca, Cantera and Maalvas.
ons of the exploration targgets are show
The locatio wn in Figure 224.2-1.
Malvas Ba
ase
Metal Anom
maly
Shah
huindo 2012
Res
serve pit SE Extension
Figure 24
4.2-1 Majorr Exploration
n Targets aro
ound the Sha
ahuindo Project
24.2.1 San
S Lorenz
zo and Cho
oloque
The San Lo
orenzo and Choloque
C tarrgets are situaated to the nnortheast of tthe currently-defined pit. The
prospects were identifiied by mapping and samp
pling of surfacce exposuress of hydrotheermal brecciaa and
d sandstone along sub-paarallel northeeast-trending structures w
mineralized which are interpreted to be a
secondary control to mineralization
m at the Shahu
uindo deposit . Tahoe conducted additiional mappingg and
sampling prior to the in
nitiation of recconnaissance drilling in thee second halff of 2015.
Drilling at San Lorenzo

o in 2015 inclluded two co
ore holes (4222m) and 24 RC holes (4,,076m); drillinng at
Choloque included onee core hole (300m) and four
f RC holees (1,066m). Select drill results from
m San
Lorenzo and
a Choloquee are presen
nted in Tablee 24.2-1 andd Table 24.2--2, respectiveely. A compplete

Pagee253
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

tabulation of significantt intercepts from
f Tahoess 2015 drill pprogram at SSan Lorenzo and Choloquue is
included in
n the Append
dix. Figure 24.2-2 is a drill hole locatio
on map of thhe San Lorenzo and Cholo
oque
areas.
Table 24..2-1 San Lo
orenzo Sele
ect Drill Results
From To DrrilledLength Est.True
Ho
oleID Aug/t Agg/t
(m) (m) (m) Width(m)
SHAD
D15019 156.4 167.1 10.7 5.3 0.93 1.87
including 156.4 157.8 1.4 0.7 5.93 9.10
SHAD
D20020 50.0 56.9 6.9 3.4 0.70 1.30
113.9 117.2 3.3 1.7 4.30 6.00
including 113.9 117.2 1.5 0.8 9.14 8.40
129.6 133.6 4.0 2.0 1.61 12.10
142.5 153.0 10.5 5.3 0.96 5.54
SHAR
R15277 80.0 90.0 10.0 5.0 0.48 2.44
SHAR
R15279 12.0 50.0 38.0 19.0 0.58 6.05
62.0 82.0 20.0 10.0 0.40 3.12
120.0 138.0 18.0 9.0 0.69 7.17
152.0 156.0 4.0 2.0 7.13 22.25
180.0 212.0 32.0 16.0 0.51 3.87
including 194.0 196.0 2.0 1.0 3.19 11.20
SHAR
R15280 0 8.0 8.0 4.0 0.89 3.78
28.0 38.0 10.0 5.0 0.34 3.42
SHAR
R15281 46.0 74.0 28.0 14.0 0.98 2.88
including 60.0 62.0 2.0 1.0 9.13 6.50
SHAR
R15282 16.0 58.0 42.0 21.0 0.45 11.02
SHAR
R15283 16.0 48.0 32.0 16.0 0.42 3.79
SHAR
R15284 24.0 70.0 46.0 23.0 1.11 3.36
including 54.0 56.0 2.0 1.0 2.87 4.10
including 60.0 66.0 6.0 3.0 3.89 2.27
SHAR
R15286 154.0 166.0 12.0 6.0 3.84 6.38
including 160.0 164.0 4.0 2.0 10.97 15.10
SHAR
R15345 86.0 92.0 6.0 3.0 1.04 9.33
SHAR
R15347 50.0 80.0 30.0 15.0 1.07 3.08
including 52.0 54.0 2.0 1.0 2.82 2.20
including 74.0 78.0 4.0 2.0 2.74 6.60
SHAR
R15348 6.0 72.0 66.0 33.0 2.62 27.49
including 14.0 20.0 6.0 3.0 21.36 182.87
52.0 54.0 2.0 1.0 3.71 34.40
SHAR
R15349 0.0 34.0 34.0 17.0 0.61 6.94
SHAR
R15351 64.0 90.0 26.0 13.0 2.54 8.54
including 68.0 76.0 8.0 4.0 4.64 19.73
including 86.0 90.0 4.0 2.0 3.19 3.75

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Table 24.2-2 Cholloque Selecct Drill Resullts
Ho
oleID Aug/t Agg/t
SHAR
R15306 168.0 194.0 26.0 13.0 4.02 18.58
including 172.0 178.0 6.0 3.0 14.55 48.70
224.0 234.0 10.0 5.0 8.42 102.22
including 232.0 234.0 2.0 1.0 41.43 486.00
SHAR
R15327 140.0 176.0 36.0 18.0 2.27 53.54
including 150.0 152.0 2.0 1.0 26.91 344.00
including 160.0 164.0 4.0 2.0 4.02 83.70
244.0 260.0 16.0 8.0 2.89 98.84
including 244.0 252.0 8.0 4.0 5.43 116.48
Figure
e 24.2-2 San
n Lorenzo an
nd Choloque
e Drill Hole L
Location Map
p
note: map waas created prior to the cessation
n of the 2015 drrill program all drill holes not sshown

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24.2.2 Shahuindo
S Southeast
S Extension and El Sau
uce
Condemnaation drilling in
i 2015 identtified two areas of mineral ization in colluvium and beedrock sedim
ments
along the southeastern extension of
o the San Josse anticline. Mineralizatio
on at the Shaahuindo Southheast
Extension and El Sauce targets are outside
o of thee current ressource, but a portion of tthis mineralizaation
ned and likelyy processed in
will be min n 2016 prior to
t constructio
on of the prim
mary waste d
dump.
Condemnaation drilling in 2015 inclu

uded 19 core holes (3,631 m) and 28 R
RC holes (2,814m). Addittional
drilling is planned
p for 2016
2 to furtheer delineate the
t mineralizaation in thesee areas. Selecct drill resultss are
presented in Tables 24.2-3
2 and 24.2-4.
2 A co
omplete tabuulation of siggnificant inteercepts from the
condemnattion drilling at
a the Southeaast Extension and El Saucee targets is inccluded in the Appendix.
Table
T 24.2-3 Southeastt Extension Select Drill Results
From To DrilledLength Est.True
Ho
oleID Aug/t Agg/t
SHAD
D15001S 62.0 69.0 7.0 n/a 1.20 12.57
including 67.2 69.0 1.8 n/a 3.48 4.70
SHAD
D15003S 0.0 24.3 24.3 21.0 0.79 1.85
42.0 50.0 8.0 n/a 0.35 4.15
SHAD
D15011S 167.0 200.2 33.2 n/a 0.42 2.55
SHAD
D15017S 12.7 32.2 19.5 n/a 0.70 10.88
including 22.8 26.5 3.7 n/a 2.53 50.78
SHAD
D15019S 47.5 58.2 10.7 n/a 1.00 8.73
including 47.5 49.0 1.5 n/a 3.05 6.00
SHAR
R15299 182.0 188.0 6.0 n/a 1.26 29.47
SHAR
R15304 6.0 22.0 16.0 9.2 0.37 0.24
Table 24.2-4
2 El Sauce Selecct Drill Resultts
Ho
oleID Aug/t Agg/t
SHAR
R15292 38.0 42.0 4.0 n/a 0.88 0.10
SHAR
R15293 0.0 4.0 4.0 1.9 0.45 0.20
SHAR
R15295 32.0 64.0 32.0 n/a 1.49 6.10
including 32.0 38.0 6.0 n/a 5.73 25.33
SHAR
R15330 22.0 38.0 16.0 n/a 0.40 5.55
SHAR
R15334 2.0 14.0 12.0 6.9 0.56 1.90
46.0 58.0 12.0 n/a 0.50 1.13
SHAR
R15335 0.0 18.0 18.0 15.6 0.58 2.00
SHAR
R15336 12.0 26.0 14.0 n/a 0.56 1.63
44.0 54.0 10.0 n/a 1.26 1.76
including 48.0 50.0 2.0 n/a 3.45 3.10

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Ta
able 24.2-4 (continued) El Sauce S
Select Drill In
ntercepts
Ho
oleID Aug/t Agg/t
SHAR
R15337 42.0 58.0 16.0 n/a 1.28 4.44
SHAR
R15338 0.0 12.0 12.0 10.5 0.50 2.43
34.0 62.0 28.0 n/a 0.79 2.61
including 36.0 38.0 2.0 n/a 3.24 9.90
SHAR
R15339 10.0 24.0 14.0 n/a 0.46 2.23
SHAR
R15340 54.0 68.0 14.0 n/a 1.58 1.63
including 56.0 60.0 4.0 n/a 4.48 1.50
SHAR
R15341 16.0 22.0 6.0 n/a 0.51 0.97
24.2.3 La
L Chilca Baja
B Cu-Au porphyry
The La Ch
hilca Baja targget is a felsic intrusive with
h a surface exxpression appproximately 2200m in diam
meter
located no
orthwest of the
t Shahuindo
o resource. The intrusivve has been pervasively aaltered to serricite
with pyritee-chalcopyritee veinlets containing gold and silver vvalues. Inform
mal miners hhad been worrking
underground in this areea for the past ten years or so, exploitinng narrow veeins within thee intrusive.
Tahoe drilled three ex

xploratory core holes to
otaling 350m at La Chilcca Baja in 20015. Select drill
intercepts are shown in Table 24.2
2-5. A complete listing of significantt intercepts is included inn the
Appendix. Tahoe will continue
c to ex
xplore this taarget in 2016..
Table 24.2
2-5 La Chilca Baja Se
elect Drill Ressults
Ho
oleID Aug/t Agg/t
SHAD
D15022 8.0 19.5 11.5 n/a 0.32 3.22
SHAD
D15023 4.0 73.4 69.4 n/a 1.36 13.64
including 26.0 35.9 9.9 n/a 7.13 64.16
SHAD
D15024 0.0 54.0 54.0 n/a 1.26 5.80
including 18.0 24.5 6.5 n/a 6.65 3.64
24.2.4 La
L Chilca Alta
A
Field obserrvations in th
he La Chilca Alta
A area iden
ntified mineraalization in the Chimu and Santa formattions
(the same host rocks ass Shahuindo). Structurallyy, this area occcurs along thhe northwest projection o
of the
Algamarca anticline, where
w steep axial-plane parallel
p fractuure patternss were recognized in Chimu
quartzite and
a in weakly silicified dacite near the quartzite
q conttact.

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Mineralizattion in the Ch
himu formatio
on includess quartz-pyrite
q veinlets up tto one cm wid
de and brecciated
sandstone with pyrite, euhedral
e quarrtz druse linin
ng vugs, and lo
ocally coarsee-grained illitee (sericite). C
Cubic
and pyritohedron voidss up to 3mm in diameter filled
f with hem
matitic iron o
oxides indicate the presencce of
significant pyrite.
Informal miners
m exploitted northeastt-striking vein
ns that consissted of crackle- and rotateed-clast brecccia in
Chim quartzite; open
n-space hydro
othermal fill consists of drusy quartzz and variouss sulfides (pyyrite,
chalcopyritte, tennantitee-tetrahedritee, and possiblyy chalcocite).. Numerous breccia typees similar to tthose
encountered at Shahu
uindo have been recogn
nized in thiss area, including monolitthic-clast breeccia
(quartzite clasts), heterrolithic igneous-matrix breeccia (diatrem
me breccia w
with sedimenttary and porpphyry
d monolithic igneous-matr
clasts), and i ix breccia witth sedimentarry clasts (alonng the Chim-dacite contaact).
Tahoe has not conductted any drillin

ng at La Chilca Alta to daate, though tthe mineralizaation is similaar to
that found in the main Shahuindo
S deeposit and rep
presents a sig nificant explo
oration targett in the districct.
24.2.5 Azules
A
The Azulees prospect (also referred
d to as the Northern
N Co
orridor Projeect) is a sedim
ment-hosted gold
target prevviously identiified by the Minera
M Algam
marca Company in the 19880s. Buenaveentura Ingeniieros
completed
d a report in
n 1986 for Minera
M Algam
marca Compaany that repo
ortedly descrribed a 35m long
narrow (1..35m) northw
west-striking vein,
v dipping 60 to the so
outhwest witth average grrades of 12 g//t Au
and 34 oz//t Ag and a seecond low an
ngle structuree approximat ely 1.2m wide and of unkknown extentt that
averaged 27
2 g/t Au and 19 oz/t Agg (E. Garay, pers. comm..). The repo
ort also referrenced a siliccified
dacitic sill, approximateely 2m thick and of unkno
own extent, with averagee grades of 66.6 g/t Au and
d 2.6
oz/t Ag. Tahoe
T has nott verified this information.
Sulliden co
onducted exp
ploration activities in the Azules areaa and identifieed anomalouus gold and ssilver
values in hydrotherma
h l breccia emplaced in san
ndstone bedss of the Farrrat Formation. During 22011,
Sulliden drrilled 6,178m
m of core at 29 locationss (Figure 24. 2-3) that retturned numeerous mineraalized
intercepts including 0.7
79 g/t Au and
d 77 g/t Ag over
o 59.5m (ddrill hole SHN
N11-328) and
d 0.41 g/t Auu and
8.89 g/t Agg over 60m (d
drill hole SHN
N11-330). The
T oxidation boundary apppears to be sshallow (less than
50m depth
h). A summarry of Sullidens drilling is sh
hown in Tabl e 24.2-6.
Tahoe has not conducteed exploratio

on activities att the Azules pprospect to ddate.

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Table 24.2-6
2 Azu
ules Sulliden
n Drill Resultts
HoleID Aug/t Agg/t
SH045
56 43.5 55.5 12 n/a 0.35 19.63
97.5 106.5 9 n/a 0.32 19.71
SH045
57 18 33 15 n/a 0.35 40
SHN11297 7.9 26.7 18.8 n/a 0.29 1.21
127.9 142.4 14.5 n/a 0.65 3.83
SHN11301 88.7 99.2 10.5 n/a 0.27 9.49
SHN11307 0 8.4 8.4 n/a 0.99 26.15
SHN11308 40.7 49.7 9 n/a 0.16 4.64
SHN11311 271.7
2 318.3 46.6 n/a 0.28 3.44
SHN11312 94.7 114.9 20.2 n/a 0.3 7.26
129.2 148.7 19.5 n/a 0.22 5.4
177.2 199.7 22.5 n/a 0.18 4.13
SHN11313 82.5 90 7.5 n/a 0.47 7
115.5 135 19.5 n/a 0.29 9.79
153 165 12 n/a 0.17 13.98
SHN11317 192 205.5 13.5 n/a 0.18 2.94
SHN11318 62.7 81.2 18.5 n/a 0.34 29.72
SHN11319 234.1
2 268.6 34.5 n/a 0.16 3.14
SHN11320 85.2 140.9 55.7 n/a 0.18 2.55
Including
I 96.4 106.4 10 n/a 0.28 1.37
Including
I 132.4
1 140.9 8.5 n/a 0.29 6.66
167.9 175.2 7.3 n/a 0.24 3.38
222.4
2 244.4 22 n/a 0.59 18.22
SHN11323 47.9 81.6 33.7 n/a 0.2 7.16
112.7 127.4 14.7 n/a 0.27 10.41
163.7 173.3 9.6 n/a 0.28 1.8
SHN11328 0 59.5 59.5 n/a 0.79 76.61
Including
I 27.2 46.7 19.5 n/a 1.55 127.04
SHN11329 43.7 69.2 25.5 n/a 0.35 24.98
109.7 121.7 12 n/a 1.06 37.61
SHN11330 119.5 179.5 60 n/a 0.41 8.89
187 200 13 n/a 0.18 6.11
SHN11332 3 18.5 15.5 n/a 0.23 2.99
SHN11335 60.1 93.1 33 n/a 1.01 15.21
166.75
1 195.1 28.35 n/a 0.25 6.91
217.6
2 261.1 43.5 n/a 0.39 18.29

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Figure 24.2-3
2 Azules Drill Hole
e Location Map
24.2.6 Algamarca
A Au-Ag-Cu Vein syste
em
Algamarca is an underrground minee that has beeen worked for over 40 years and is currently bbeing
exploited on
o a small sccale by inform
mal miners. At
A least six n arrow veins have been reecognized in tthick
sandstone beds of the Chimu formaation. The veins generally strike northeeast and dip 60 to 70 to
o the
southeast (Figure 24.2-4
4), vary in thickness from 0.2m to 2m, and tend to bbifurcate wheen they trend
d into
host rockss other than the
t Chimu. The
T Algamarca veins havee been identiffied over a 4000m strike leength
and 200m down dip.
The most exploited vein at Algamarrca is the Deescubridora vvein. The veiin mineralogyy is pyrite, gaalena,
sphalerite, chalcopyritee, bornite, and
d Ag-sulfosaltts (Figure 244.2-5). The w
wall rock has been pervassively
altered to
o sericite. The wallrocck alteration and mineraal assemblagge suggests Algamarca is an
intermediaate-sulfidation
n type depossit. Rio Alto
o geologists ssampled the Descubridorra vein at lim
mited
locations on
o the 4 an
nd 5 levels of
o the mine. The sample results sum
mmarized in Table 24.2-77 are
considered
d indicative only, as access was limited.

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Table 24
4.2-7 Algam
marca Sam
mple Results ffrom the Desscubridora V
Vein
Sample TrrueWidth
Location Type A
Aug/t Aggg/t Cu%
%
Length(m) (m)
Level5 Vein 1.2 1.2 5.70 4,2298 15.559
Vein 0.6 0.6 8.31 8660 5.81
Wallrock 1.5 n/a 0.16 119 0.077
Vein 0.6 0.6 9.30 1,7782 5.577
Vein 0.4 0.4 113.90 2,7740 24.555
Wallrock 1.0 n/a 1.21 666 0.222
Wallrock 1.0 n/a 6.15 6117 2.266
Level4 Vein 0.4 0.4 110.87 3,2282 14.111
Wallrock 1.0 n/a 0.43 668 0.266
Wallrock 1.0 n/a 0.59 550 0.588
Vein 0.5 0.5 2.92 4330 13.449
Wallrock 1.0 n/a 0.03 22 0.01
Vein 0.5 0.5 110.17 2,3359 21.778
Vein 1.0 1.0 5.81 7115 5.244
Figurre 24.2-4 Algamarca

A Sa
ample Locatio
on Map (4 an
nd 5 Levels)

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Figurre 24.2-5 Algamarca

A Descubridora
D a Vein on Levvels 4 and 5
(maassive chalcopyyrite as clasts aand matrix)
24.2.7 Cantera
C
The Canteera prospect is a sediment-hosted gold
d target nortthwest of thee Shahuindo d
deposit. Canntera
was identiffied by IP survveys followed
d by reconnaiissance surfacce mapping annd limited surrface geochem
mical
sampling. Further field work is neceessary to defin
ne drill targetts.

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24.2.8 Malvas
M
The Malvas base metal anomaly is lo
ocated along a northwest-ttrending topo
ographic ridgee that followss the
he Algamarca anticline. Fo
trend of th olded sedimen
ntary rocks o
of the Carhuaaz Formation are intruded by a
large irreggularly shaped
d body of heeterolithic bio
otite diorite breccia abouut one kilometer in diameter,
which is in
n turn intrudeed by foliated
d biotite quarrtz diorite po
orphyry and tthen cut by a circular bod
dy of
heterolithic megabrecciia 500m in diaameter.
olithic biotitee diorite brecccia displays strong

The hetero s quartzz-illite-pyrite aalteration forr 30 to 40 meeters
along the southeast co
ontact with fo
oliated biotitee quartz diorrite porphyryy. The foliatted biotite quuartz
d the heterolithic megabrreccia are maagnetic and sshow only traaces of weakk chlorite-epiidote
diorite and
alteration.
At the northwest conttact with foliated biotite quartz porphhyry, heterollithic biotite diorite brecccia is
ngly altered to
again stron t quartz-illitte assemblagee and may innclude zones with pyrophhyllite and aluunite.
Brecciated
d sandstone adjacent
a to th
he igneous matrix
m brecciaa appears to originally havve had up to 10%
pyrite in arreas that now
w have abundaant iron oxidee and jarositee.
Tahoe con
nsiders the Malvas
M prospect as an im
mportant longg-term explo
oration targett. Focus on this
prospect will
w commencce when the extent of thee oxide minerralization thaat could add tto the econo
omics
of the currrent project are
a delineated
d.

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25.0 IN
NTERPR
RETATIO
ON AND
D CONCLUSION
NS
The Shahuindo mine is registered in the name off Shahuindo SSAC. Tahoe R
Resources is a sole proprietor
of the Shaahuindo mine through itts subsidiary, Shahuindo SAC. The Shahuindo m
mine is currently
completingg Phase 1 co
onstruction which
w includ
des the deveelopment of the Phase 1 leach pads and
processingg facility. Commissioning is expected to be com
mpleted in Jannuary 2016 with commeercial
production
n anticipated by the second quarter of 2016.
2
The results of this studyy conclude:
Th
he Shahuindo mine prefeasibility study demonstratees the econo
omic viability of the Shahuuindo
mine from 01 January 2016
6 through to the end of the estimateed mine life aand supportss the
declaration of Proven
P and Prrobable Mineral Reserves.
Th
he Mineral Reesource Estim
mate for the Shahuindo
S deeposit containns 1.55 millio
on ounces of gold
claassified as Meeasured resou
urces, 0.74 million
m ouncess classified ass Indicated reesources and 0.62
million ounces of gold classified as Inferrred resourcees. The cut-o
off grade for oxide of 0.14 g/t
uEq and sulfid
Au de of 0.5 g/t AuEq
A was used to equatee the Resourcce. The effecctive date forr the
Mineral Resourrce is 15 April 2015.
Th
he Shahuindo Mineral Resource Estimaated is suppo
orted by the ggeological mo
odel and is bbased
on
n sufficient sample analyttical and den
nsity measurrements, detaailed drill ho
ole lithology and
alteration data, and metallurrgical testing.
Th onfidence in the resourcce resulting in an

he recent inffill drill progrram has incrreased the co
upgrade of mateerial that wass previously classified
c as Inndicated to thhe Measured cclassification.
Th
he results of four
f data verrification proggrams found that the QAQC is sufficieent to ensuree the
dattaset used in
n the resourrce estimate is reliable fo
or estimationn purposes o
of the Shahuuindo
Mineral Resourrces and the assignment of
o Measured and Indicatio
on classificatio
ons to the sttated
ressource.
he Shahuindo Proven and Probable Mineral Reservve for the Shhahuindo minne using a cuut-off
Th
graade of 0.14 g//t Au is 111.9
9 million tonn
nes with an avverage grade of 0.53 g/t Au and 6.82 g//t Ag,
containing 1.91 million ouncces of gold and 24.5 millio
on ounces off silver. Thee effective datte of
thee Mineral Resserve is 01 November 2015.
Th
he operating assumptions
a used
u in this study
s are baseed on operatting results already achieveed at
Taahoe Resources La Arena mine which is very similarr to the Shahuuindo mine.

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Th
he results of the
t laboratorry testing proggram indicatee very good ggold recoveriees at both run-of-
mine (ROM) and moderatee crush sizes with low to o moderate rreagent requiirements impplying
am
menability to heap
h leachingg. Silver recovveries are gennerally low.
Th
he mining strategy at Shah
huindo consists of two pphases. The first phase cconsists of m
mining
higgher grade sttarter pits feeeding the Phaase 1 leach ppads with runn of mine maaterial at an initial
nd increasingg plant capaciity in mid-2016 to processs an
ratte of 10,000 tonnes of orre per day an
aveerage of 12,200 tonnes off ore per day in 2016 and 16,500 tonnees of ore perr day in 2017.. The
seccond phase in
ncludes the ad
ddition of a crushing and aagglomerationn facility, a larrge leach pad, and
an increase in mining prod
duction to 36,000 tonne s of ore peer day, whichh will requirre an
upgraded minin
ng fleet. The phased apprroach enabless gold producction as soonn as possible with
minimal capital expenditure, generating caash flow earlyy in the projeect.
Th proach to mining and processing also aallows the Company to conduct field-scale
he phased app
meetallurgical testing to optim
mize the proccessing schem
me for the rem
mainder of the mine life (P
Phase
2).. While theree are clear beenefits to mettal recovery by the use off agglomeratiion, there maay be
op
pportunities to
o achieve low
wer operatingg and capital ccosts by reduucing the amo
ount of materrial in
thee current plan
n that are sub
bject to agglomeration andd/or crushing..

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26.0 RECOMM
R MENDAT
TIONS
The recom
mmendations for this report are as follo
ows:
xploration liceenses near the existing faccility where thhe regional geeology appears to
Taahoe holds ex
be a favorable environmen
nt for the fo
ormation of mineral depo
osits. Tahoee has establiished
numerous exploration prospects within Tahoes expploration areaa. The autho
ors of this reeport
reccommend th
he Companyy continues to aggressivvely explore the Shahuinndo district and
acccelerate district explorattion with the goal of discovering addditional oxiide feed forr the
Shaahuindo heap
p leach processsing facility.
Th
he recent drilling conducteed by Rio Alto
o in 2014-2015 and by Taahoe in 2015 has identified
d ore
graade mineralizzation that iss outside of the current oxide resource, beyond the limits off the
current pit design. Tahoe should
s aggresssively explorre for extensions of the SShahuindo deposit
d delineate the mineralizaation in thesee areas to exxpand the resource and incorporate tthese
and
extensions into a new pit deesign.
Asssay standardss should be validated

v and//or replaced. Validation sshould includ
de consulting with
CE
ERTMIN in regards to thee observed bias
b in the asssay standardds and also o
obtain the ro
ound-
robin assays for the standarrds from SGSS to determinne the assay variance. In tthe event thaat no
und, it is reccommended that the cuurrent standaards be repllaced with o
solution is fou other
commercially available
a stand
dards. It is also recomm
mended to inncorporate sttandards into
o the
mple stream that
sam t are eitheer at or near the cut-off grrades.
he practicalityy of creating new assay bblanks from ccoarse RC reejects

Taahoe should investigate th
d begin usingg a second laab for check assays to im prove the co
and onfidence in tthe current aassay
ressults.
Co
ontinue to refine the geolo
ogic model to
o provide a m
more accuratte prediction of material ttypes
to improve the predictabilityy of the geom
metallurgical m
model.
Ass additional drill data beco

omes available, the resourrce model shhould be refinned and reso
ource
esttimates updatted. Addition
nal infill drillin
ng will lend fuurther confideence in the reesource modeel.
Up
pdate and refiine the life off mine water balance as opperational datta becomes avvailable.
Maaintaining heaap permeabilitty and minimiizing channeliing at higher heap heights constitutes a risk
to the project as on and compaacted permeaability testing is required. The
a additional agglomeratio
autthors recomm
mend Tahoe conduct pilo
ot-scale heap leach tests o
on the currennt ROM leachh pad
to investigate field-scale
f peerformance on
o compositees with varying degrees o
of coarse-to--fines
rattios.

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Th
he available daata indicates that
t siltstoness and brecciaa with high finnes content w
will most likelyy not
percolate in a ROM
R heap leeach. The au
uthors recom
mmend conduucting compaacted permeaability
tessts at the reccommended coarse crush size, with no
o cement onn these two m
material typees. If
thee results of th
hese tests aree positive, then consideraation should bbe given to co
onducting a ppilot-
scaale test on a composite of these two M pad. The splits from each
o rock types on the ROM
composite testeed in the pilo
ot-scale tests should be ta ken and column leach tests conducted
d at a
coarse crush sizze of approximately 80% passing
p 76mm
m.
It is recommended that ad
dditional testts be condu cted on sam
mples taken from the drrilling
pro
ogram, includ
ding:
Column leaach tests on both surface and large diaameter core samples should be conduucted
on each off the rock tyypes (except sulfides) at a p80 crush size of 76m
mm. The sam
mples
should be spatially
s repreesentative of the orebodyy. Large diam
meter core ho
oles should m
match
the latest metallurgical
m drill
d holes so the results frrom the seriees of column lleach tests onn the
-25mm testts can be com
mpared to the 76mm testt results. Thee gold gradess of the indivvidual
rock types to be tested should be sim
milar to thosee estimated inn the mine plaan.
Compacted
d permeabilityy tests on eaach rock typee from the laarge core drrilling program
m on
compositess crushed to 76mm shou
uld be conduucted. The tests should
d include blended
compositess containing the
t different rock types at a ratio shhown in the mining schedule.
Tests at cem
ment levels of
o 0 kg/t, 3 kgg/t and 6 kg/t at varying sim
mulated heap heights up to
o the
maximum planned
p heigh
ht above thee liner shouldd be completted. If any ssamples fail, then
additional composites
c should
s be tested with inccreased levels of cementt until accepttable
percolation
n rates are ach
hieved at all simulated
s heigghts.
fter reaching commercial production, the authors recommendd the Compaany systematically
Aft
evaluate miningg, processing and other surface operatiions to optim
mize processees and proced
dures
and reduce capital and operaating costs. Example
E of thhese would innclude the following:
Conduct a trade-off stud

dy to evaluatee the potentiial to reduce or eliminate the requirem
ments
for crushing and/or aggglomeration. It is recomm
mended this be conducteed by evaluating a
series of material
m blends for leachingg, percolationn, and geotecchnical stabilitty characteristics.
The analysiis would neeed to review the operatinng and capitaal cost versuss recovery. This
would need
d to be cond
ducted beforre the constrruction of thhe Phase 2 aggglomeration and
crushing cirrcuit.
The data for ndary crusheer indicated a recovery ddifference of 4-5% betweeen a
f the secon
76mm and 25mm crush size for the ROM materiial. A trade-o
off study should be conduucted
ne if the addittional recovery justifies thhe increased ccapital and opperating costss of a
to determin
secondary crushing
c circu
uit.

Pagee267
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

Expand thee geotechnicaal and hydro
ogeological evvaluations to further opttimize the ovverall
slope angle of the final design
d of the Shahuindo o
open pit. Thiss has the pottential to incrrease
the NPV off the overall project.
p
There is po
otential to reeduce the opeerating costs of the mine by evaluatingg the potentiial to
place mined
d waste in th
he pit. This will
w require ddefining the underlying sulffide resourcee and
understanding the econo
omic potentiaal (if any) of t he sulfide minneralization.
The workk completed to date dem

monstrates th
he project iss technically and econom
mically viable;; the
recommen
ndations listed above are intended to provide thee Company w
with guidancee to optimizee the
Shahuindo mine.

Pagee268
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

27.0 REFEREN
R NCES
Anddes Asociados SAC
C, 2015a, Proyecto Shahuiindo Ingenieriia Basica del Pad N2 - C
Criterio de Diiseo,
Revisionn 1.
Anddes Associados SAC

C, 2015b, Proyyecto Shahuinddo Ingenieria BBasica del Padd N2 - Inform
me de Actualizacion
de la Hidrologia,
H Revvision B.

C, 2015c, Proyyecto Shahuinndo Ingenieria Basica del Paad N2 - General Memoranndum
Tecnicoo, Revision 0.

C, 2015d, Proyyecto Shahuinddo Diseo de TTaludes de Tajjo - Informe Finnal Revision 0..

C, 2015e, Proyyecto Shahuinddo Ingenieria dde Detalle dell Pad N01 - Criterio de Diiseo,
Revisionn 0.

C, 2015f, Proyyecto Shahuinddo Ingenieria dde Detalle dell Pad N01 - Informe de D
Diseo
Civil e Hidraulica
H , Reevision 0.

C, 2015g, Proyyecto Shahuinddo Ingenieria dde Detalle del Pad N01 - Innforme Geoteccnico,
Revisionn 0.

C, 2015h, Proyyecto Shahuinddo Ingenieria dde Detalle dell Pad N01 - R
Resumen Ejecutivo,
Revisionn 0.
Anddes Asociados
A SAC, 2015i, Prooyecto Shahuindo Ingenieriia Basica del Pad 2 - Shaahuindo - Infforme
Geoteccnico - Informe de Investigaciiones Geotecniicas, Revision BB.
Anddes Asociados
A SA
AC, 2015j, Prroyecto Shahuuindo Ingenierria de Detallee del Pad N01 - Informe de
Hidroloogia y Balance de Agua, Reviision 1.
Ausenco, 2012,
2 Feasibility Study, Hydrrogeology Repoort, prepared for Sulliden G
Gold Corporration.
Bussey, S.,, and Nelson

n, E., 2011, Geological
G Anaalysis of the SShahuindo disttrict, Cajabam
mba Province, Peru,
preparred by Westeern Mining Services LLC fo
or Sulliden Go
old Corporattion.
Census Naational, 2007, http://censoss.inei.gob.pe/ccpv2007/tabuulados.
Corbett, G.J.,
G 2002, Epithermal Gold for
f Explorationnists, AIG New
ws No. 67.

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M Peru
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T Repo
ort

Defilippi, C.,
C Dyer, T.L., and Tietzz, P., 2012, Technical Repport on the SShahuindo Heeap Leach Prroject,
Cajabaamba, Peru, prrepared for Su
ulliden Gold Corporation,
C , Ltd.
Federal Em
mergency Management Aggency of the U.S. Departm
ment of Hom
meland Security, 2009, NEEHRP
(Natio
onal Earthquake Hazaards Reducttion Progrram) Recom
mmended Seeismic Proviisions
for New
w Buildings and Other Structtures (FEMA P-750),
P 2009 EEdition.
Fletcher, D.
D I., 1997, Booti Gold-silver Project,
P Departtment of Cajam
marca, Peru, Innternal Asarcco Inc. reportt.
Golder Associates,
A 20
012, Draft Feasibility-Level
F l Pit Slope IInvestigation, prepared fo
or Sulliden G
Gold
Corpo
oration.
Hatch, 201
15, Rio Alto SA
AC Shahuindo Heap
H Leach Study
S Final Repport.
Heap Leacch Consultan

nts, 2005, Prooyecto San Jos de Algarm
maca, Informe de Pruebas dde Cianuracioon en
Botellass y Columnas a Escala Pilotoo, prepared fo
or Ca. Mineraa Algamarca S.A.
Hedenquisst, J. W., 1987, Mineralizattion Associatted with Volccanic-related Hydrotherm

mal Systems inn the
Circum
m-Pacific Basiin, in Horn, M. K., ed., Transactions
T of the Fourrth Circum-P
Pacific Energyy and
Mineraal Resources Conference, Singapore: American
A Asssociation of Petroleum G
Geologists, p. 513-
524.
Hedenquisst, J. W., and Arribas, A. R., Jr., 1999,, I. Hydrotherm

mal Processess in Intrusion-rrelated System
ms; II.
Characcteristics, Exam
mples and Origgin of Epitherm
mal Gold Depoosits, in Molnaar, F., Lexa, J., and Hedenqquist,
J. W., eds., Epitherm
mal Mineralizzation of the Western
W Carrpathians: So
ociety of Econnomic Geologgists,
book Series, no. 31, p. 13--61.
Guideb
Hedenquisst, J. W., Arriibas, A. R., an

nd Urien-Gon
nzales, E., 20000, Exploratioon for Epitherm
mal Gold Depposits:
SEG Reviews,
R v. 13,, p. 245-277.
Hodder, R.
R W., et. all., 2010a, The Shahuindo Epithermal G
Gold Occurrennce, Cajabambba Province, Peru;
Petrogrraphic Reconnnaissance & Interpretationn of Shape and Size, prepared fo
or Sulliden G
Gold
Corpo
oration Ltd.
Hodder, R.
R W., 2010b, The Shahuinddo Epithermal Gold Occurrennce, addendum to the Junee 30, 2010 reeport
by Hod
dder et al., prrepared for Sulliden Gold Corporation Ltd.
Hoek E., Carranza-Tor

C rres C. & Co
orkum B., 200
02, Hoek-Bro
own failure ccriterion - 20002 Edition, P
Proc.
NARM
MS-TAC Confference, Toro
onto, 2002, 1,, 267-273.

Pagee270
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

Internation
nal Code Cou
uncil, 2012 International Buuilding Code,
https:///archive.org/sstream/gov.law
w.icc.ibc.2012
2/icc.ibc.20122
Internation
nal Commission on Large Dams, 2010, ICOLD Positioon Paper on Daam Safety andd Earthquakes..
Kappes, Cassiday & Asssociates, Janu

uary 2011, Drrill Core Compposites, Columnn Leach Test PProgram, Repoort of
Metalluurgical Test Work,
W prepared
d for Sulliden Gold Corpo
oration.
Kappes, Cassiday
C & Asssociates, June 2011, All Rock
R Code Co mposites, Repport of Metalluurgical Test W
Work,
preparred for Sullideen Gold Corp
poration.
Kappes, Caassiday & Asssociates, Junee 2011, Polymeer Testing, Repport of Metalluurgical Test W
Work, prepared
d for
Sulliden Gold Corp
poration.
Kappes, Caassiday & Asssociates, June 2011, Reportt of Metallurgic

ical Test Workk, Bottle Roll T
Tests, prepared
d for
Sulliden Gold Corp
poration.
Kappes, Cassiday
C & Asssociates, Marrch 2011, Report of Metalllurgical Test W
Work, Bottle R
Roll Tests 2
2010,
SHM-1
10-116 SHM
M-10-118, preepared for Sullliden Gold C
Corporation.
Kappes, Cassiday
C & Asssociates, Mayy 2011, 116 & 118 Colum
mn Tests, Repport of Metalluurgical Test W
Work,
preparred for Sullideen Gold Corp
poration.
Kappes, Caassiday & Asssociates, May 2012, Bulk ROM

R Material, Report of Meetallurgical Tesst Work, preppared
for Sullliden Gold Corporation.
C
Kappes, Cassiday & Asssociates, Sep

ptember 2012
2, HLC 6, 7, 88, 9 Composittes, Report off Metallurgicall Test
Work, prepared forr Sulliden Gold Corporatio
on.
Montgomeery Watson Harza

H Peru, 2015, Balance Hidrolgicoo del Proyectoo Shahuindo SSHAHUINDO SAC,
Final Veersion.
Montoya, D. E., Noblee, D. C., Eyzzaguirre, V. R.,

R and Desrrosiers, D. F.., 1995, Sanddstone-hosted Gold
Deposiits; A New Expploration Targeet is Recognizeed in Peru: Enngineering andd Mining Journal, June 1, 19995.
Pickmann and Ruiz, 2015,

2 Title Opinion
O on the Shahuindo Mining Conccessions, preppared for Tahoe
Resources Inc. (unp
published).
Pickmann and
a Ruiz, 2015, Title Opinioon on the Shahhuindo Surfacee Lands, prepared for Taho
oe Resourcess Inc.
(unpub
blished).

Pagee271
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

Saucier, G., and Buchan
nan, M. J., 200
05, Resources Estimation, Shhahuindo Projeect, Peru, preppared for Sulliden
Explorration Inc. by Met-Chem Canada
C Inc.
Saucier, G., n, L., 2004, Resources Esttimation, Shahhuindo Projectt, Peru, prepared for Sulliden
G and Poulin
Explorration by Met-Chem Canad
da Inc.
Silgado, E., 1978, Historiia de los sismoos mas notablees ocurridos enn el Pero (1513-1974), lnstiituto de Geologa
y Mineera, Boletin N
N 3, Serie C,, Geodinamica e Ingenieraa Geolgica, LLima-Peru.
Tietz, P., and

a Kappes, D.,
D 2011, Tecchnical Report on the Shahuuindo Project, Cajabamba, PPeru, prepared
d for
Sulliden Gold Corporation, Ltd
L by Mine Developmeent Associatees and Kapppes, Cassidaay &
Associiates.
Val Dr Geofisica
G del Peru S.A.C., 2002, Geophysical Report on Induced PPolarization, DG
GPS and Maggnetic
Surveyss, Shahuindo Project,
P preparred for Exploration Sullideen Inc.
Wright, C., Melnyk, J., Gormely, L., Simpson, G., and Lupo, J ., 2010a, Shaahuindo Gold PProject, Cajabaamba
Provincce, Peru, NI 43
3-101 Technical Report on Preliminary
P Asssessment, preepared by AM
MEC Americass Inc.
for Sullliden Gold Corporation.
C
Wright, C., Melnyk, J., Gormely, L., Simpson, G., and Lupo, J ., 2010b, Shaahuindo Gold PProject, Cajabaamba
Provincce, Peru, Preeliminary Asseessment, prepared by A
AMEC Amerricas Inc. fo
or Sulliden G
Gold
Corpo
oration.

Pagee272
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

28.0 AUTHOR
A RS CERT
TIFICAT
TES

Pagee273
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

28.1 Certificate
C e of Qualified Persson Carrl E. Defillippi
I, Carl E. Defilippi,
D M.Sc., C.E.M., do
o hereby certtify that I am
m currently em
mployed as a Project Mannager
for Kappess, Cassiday & Associates, 7950
7 Securityy Circle, Renoo, Nevada 895506.
1. I graduated
g witth a Bachelorr of Science degree
d in Chhemical Enginneering from the Universitty of
Neevada in 1978
8 and a Masteer of Science degree in Meetallurgical Enngineering fro
om the Univeersity
of Nevada in 19
981. I have practiced my profession
p co
ontinuously sinnce 1981.
2. I am a Registereed Member in
n good standiing of the Socciety for Mining, Metallurggy and Exploraation
(7775870RM).
3. I have
h read Nattional Instrum
ment 43-101 (NI
( 43-101) aand certify thhat by reason of my educaation,
affiliation with a profession nal associatio
on as definedd in NI 43--101 and passt relevant w work
experience, I fulfil the requirrements to bee a Qualifiedd Person for the purposes of NI 43-1001.
4. I am
a independent of Taho oe Resourcess Inc. and itts related co
ompanies, as independencce is
described in Secction 1.5 of NI
N 43-101.
5. I am
a one of thee authors of this Technical Report titlled Technical Report on thee Shahuindo M
Mine,
Caj
ajabamba, Peruu prepared fo
or Tahoe Resources Inc., with an effeective date off 01 January 22016
and d dated 25 January 2016.. I am respoonsible for S ections 13 aand 17 and thhe corresponnding
iteems in Sectio
ons 1, 25 annd 26 of thiss report. Thiis technical report has bbeen prepareed in
compliance with h NI 43-101 and
a Form 43--101F1.
6. I am
a the co-autthor of two previous
p tech
hnical reportss completed o on the Shahuindo propertty on
d Updated Teechnical Reporrt on the Shahhuindo Project, Cajabamba, Peru,
behalf of Sullideen Gold titled
datted 15 October 2012, an nd Technical Report
R on thee Shahuindo HHeap Leach Project, Cajabaamba,
Perru, dated 09 November
N 20012.
7. I visited the Shaahuindo projeect site on Ap
pril 6-8, 2010;; May 4-7, 20010; and Septeember 2-3, 20015.
8. Att the effectivee date of thiss Technical Report,
R to thhe best of myy knowledge,, informationn and
belief, the Tech
hnical Report contains all scientific
s and ttechnical info
ormation thatt is required tto be
dissclosed to maake the Technnical Report not
n misleadingg.
9. I hereby
h conseent to the filing of this Technical
T Report with anny stock excchange and o other
reggulatory auth
hority and anyy publication by them, inccluding electrronic publicattion in the ppublic
o their website accessible by the publicc, of the Techhnical Reportt.
company files on
Dated 25 January
J 2016
/s/ Carl E.
E Defilippi
Carl E. Deefilippi, SME Registered
R Meember

Pagee274
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

28.2 Certificate
C e of Qualified Persson Cha
arles V. M
Muerhoff
I, Charles V.
V Muerhoff, B.Sc., do herreby certify th
hat I am curreently employeed as Vice Prresident Techhnical
Services fo
or Tahoe Reso
ources Inc., 5310
5 Kietzke Lane, Reno, N Nevada 89511
1. I graduated
g witth a Bachelorr of Science Degree
D in Geeology and Geophysics fro om the Univeersity
of Missouri-Rolla in 1989. I have practiceed my professsion continuo
ously since 19990.
2. I am a Registereed Member in
n good standiing of the Socciety for Mining, Metallurggy and Exploraation
(4182272RM).
3. I have
h read Nattional Instrum
ment 43-101 (NI
( 43-101) aand certify thhat by reason of my educaation,
affiliation with a profession nal associatio
on as definedd in NI 43--101 and passt relevant w work
experience, I fulfil the requirrements to bee a Qualifiedd Person for the purposes of NI 43-1001.
4. I am
a not indep pendent of Taahoe Resources Inc. and its related ccompanies, ass independence is
described in Secction 1.5 of NI
N 43-101.
5. I am
a one of thee authors of this Technical Report titlled Technical Report on thee Shahuindo M Mine,
Caj
ajabamba, Peruu prepared fo or Tahoe Resources Inc., with an effeective date off 01 January 22016
and dated 25 Jaanuary 2016. I am respon nsible for Secttions 2, 3, 6, 7, 8, 9, 10, 111, 12, 14, 199, 21,
222, 23 and 24, and the co orresponding items in Seections 1, 255 and 26 of this report. This
tecchnical reporrt has been prrepared in compliance withh NI 43-101 aand Form 43--101F1.
6. I visited the Shaahuindo property May 19-2
20, 2015 and November 113-14, 2015.
R to thhe best of myy knowledge, informationn and
beelief, the Tech
n misleadinng.
8. I hereby
T Reeport with anny stock excchange and o other
hority and any publication by them, inccluding electrronic publicattion in the ppublic
reggulatory auth
co o their website accessiblee by the publicc, of the Techhnical Reportt.
ompany files on
Dated 25 January
J 2016
/s/ Charlles V. Muerhoff

Charles V Muerhoff, SM
ME Registered
d Member

Pagee275
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort

28.3 Certificate
C e of Qualified Persson Tim
m William
ms
I, Tim Williams, M.Sc., do hereby ceertify that I am
a currently employed ass Vice Presideent Operatio
ons &
Peru Coun
ntry Manager for Tahoe Reesources Inc., 5310 Kietzkke Lane, Renoo, Nevada 895511.
1. I graduated
g witth a Bachelorr of Engineeriing (Geology)
y) degree from
m Curtin University, Wesstern
Auustralian Scho ool of Miness in 1991, a Masters of Engineering Science deggree from Curtin
Unniversity in 20 000 and a Graduate Diplo oma in Mininng from Curttin Universityy in 2006. I have
praacticed my prrofession conntinuously sincce 1991.
2. I am a Fellow of the Australaasian Institutee of Mining annd Metallurgyy (AusIMM).
3. I have
h ment 43-101 (NI 43-101) aand certify thhat by reason of my educaation,
read Nattional Instrum
afffiliation with a profession nal associatio
on as define d in NI 43--101 and passt relevant w work
exxperience, I fuulfil the requirrements to bee a Qualifiedd Person forr the purposes of NI 43-1001.
4. I am
a not indep pendent of Taahoe Resourrces Inc. and its related ccompanies, ass independence is
deescribed in Section 1.5 of NI
N 43-101.
9. I am
a one of thee authors of this Technical Report titlled Technical Report on thee Shahuindo MMine,
Caj
ajabamba, Peruu prepared fo
or Tahoe Ressources Inc., with an effecctive date of 01 January 22016,
and dated 25 January 2016. I am responsible forr Sections 44, 5, 15, 16, 18, and 20 and
co
orresponding items in Secctions 1, 25 and
a 26 of thhis report. T his technical report has been
prepared in commpliance with a Form 43- 101F1.
h NI 43-101 and
5. I have
h visited and
a worked at ty regularly and on numerrous occasions in
a the Shahuiindo property
2014 and 2015.
R to thhe best of myy knowledge, informationn and
beelief, the Tech
n misleadinng.
7. I hereby
T Reeport with anny stock excchange and o other
hority and any publication by them, inccluding electrronic publication in the ppublic
reggulatory auth
co o their website accessiblee by the publicc, of the Techhnical Reportt.
ompany files on
uary 25, 2016

Dated Janu 6
/s/ Tim Williams

W
Tim Williams, FAusIMM
M

Pagee276
Shahuindo Mine,
M Peru
NI 43-101 Technical
T Repo
ort
AP
PPENDIX
X
PO
OST-RESOURCE DRILL INTERCE
EPTS
STEPOUTDRILLING
DrilledLength EstTrueWidth
HoleID Easting Northing Elevation Inclination Azimuth Depth(m) DrillType From(m) To(m) Aug/t Agg/t
(m) (m)
SHAD15003 808,033.1 9,156,523.2 2935.2 60.0 35 235.9 core 99.5 122.5 23.0 n/a 0.25 2.57
198.1 200.0 1.9 n/a 0.24 1.30
216.5 220.2 3.7 n/a 0.35 0.99
SHAD15004 808,357.6 9,156,461.9 2846.2 63.4 36 260 core 146.5 158.0 11.5 n/a 0.43 1.88
175.5 177.5 2.0 n/a 0.51 1.70
235.8 237.0 1.2 n/a 0.26 0.50
253.0 258.0 5.0 n/a 0.94 1.66
SHAD15005 807,932.0 9,156,546.5 2972.2 60 43 200 core 16.7 18.4 1.7 n/a 0.24 0.30
27.0 28.4 1.4 n/a 0.38 0.10
SHAD15006 807,870.5 9,156,659.8 2948.5 52 30 230.1 core 52.4 69.0 16.6 n/a 0.79 10.00
including 59.4 63.0 3.6 n/a 2.48 30.28
83.6 91.7 8.1 n/a 0.28 1.73
143.6 144.8 1.2 n/a 0.64 0.30
151.0 157.5 6.5 n/a 0.32 0.99
161.9 163.4 1.5 n/a 0.41 0.40
176.7 178.3 1.6 n/a 0.20 0.30
187.2 191.1 3.9 n/a 0.32 0.63
215.9 217.0 1.1 n/a 0.37 1.20
SHAD15007 807,856.0 9,157,737.0 2842.5 59 35 210.1 core 0.0 32.0 32.0 n/a 0.26 2.11
38.0 40.0 2.0 n/a 0.26 1.40
180.3 181.6 1.3 n/a 1.13 15.70
SHAD15008 807,932.4 9,157,697.8 2830.6 61 35 239.4 core 0.0 10.0 10.0 n/a 0.25 2.74
16.0 31.0 15.0 n/a 0.31 2.02
43.8 45.8 2.0 n/a 0.23 1.40
203.5 214.2 10.7 n/a 0.50 24.83
SHAD15009 807,870.5 9,156,659.8 2948.5 52 213 213.7 core nosignificantintercepts
SHAD15010 808,020.4 9,157,623.5 2802.3 56 30 260.3 core 24.5 29.1 4.6 n/a 0.26 6.46
90.0 97.1 7.1 n/a 0.55 5.27
218.0 222.0 4.0 n/a 0.38 7.50
232.0 235.5 3.4 n/a 0.37 1.51
SHAD15011 807,521.9 9,156,913.1 2974.0 61 37 306.9 core 119.4 121.0 1.6 n/a 0.25 0.10
174.0 177.5 3.5 n/a 0.28 1.18
204.0 223.0 19.0 n/a 0.26 1.83
235.0 306.9 71.9 n/a 0.50 13.49
SHAD15012 807,931.6 9,156,630.2 2965.9 60 35 700 core 160.5 162.0 1.5 n/a 0.25 0.10
169.7 171.0 1.3 n/a 0.31 0.10
181.0 182.9 1.9 n/a 0.32 1.00
300.0 302.0 2.0 n/a 0.49 0.60
421.0 422.0 1.0 n/a 0.22 0.70
430.0 443.3 13.3 n/a 1.09 0.85
including 441.3 443.3 2.0 n/a 4.50 1.10
462.0 480.0 18.0 n/a 0.72 3.75
including 472.0 476.0 4.0 n/a 2.33 7.30
502.0 509.0 7.0 n/a 0.62 7.17
520.0 540.9 20.9 n/a 0.34 3.65
drillintervalcompositesreportedusing0.2g/tAuCutoff Page1of11
STEPOUTDRILLING
(m) (m)
548.0 580.0 32.0 n/a 0.48 2.33
589.6 608.0 18.4 n/a 0.75 7.36
including 589.6 591.0 1.4 n/a 5.6 14.0
SHAR15235 807,932.1 9,156,630.7 2965.0 64 41 242 RC 124.0 126.0 2.0 n/a 0.21 1.70
156.0 158.0 2.0 n/a 0.29 0.40
166.0 176.0 10.0 n/a 0.22 1.16
182.0 184.0 2.0 n/a 0.20 0.10
186.0 188.0 2.0 n/a 0.23 0.10
SHAR15236 807,894.6 9,156,563.7 2975.4 61 37 298 RC 24.0 26.0 2.0 n/a 0.52 0.10
124.0 126.0 2.0 n/a 0.16 0.10
132.0 134.0 2.0 n/a 0.35 0.30
144.0 146.0 2.0 n/a 0.44 0.70
SHAR15237 807,890.7 9,156,493.2 2980.8 60 35 242 RC 36.0 38.0 2.0 n/a 0.26 0.10
176.0 182.0 6.0 n/a 0.23 0.90
SHAR15238 807,971.7 9,156,597.0 2962.3 60 34 240 RC 40.0 46.0 6.0 n/a 0.24 0.60
108.0 110.0 2.0 n/a 0.21 2.80
124.0 126.0 2.0 n/a 0.31 1.40
134.0 136.0 2.0 n/a 0.21 1.40
156.0 162.0 6.0 n/a 0.79 0.83
192.0 194.0 2.0 n/a 0.20 0.80
SHAR15239 807,995.2 9,156,550.4 2955.0 61 34 268 RC 122.0 124.0 2.0 n/a 0.20 0.60
130.0 138.0 8.0 n/a 0.26 1.93
210.0 212.0 2.0 n/a 0.20 0.50
220.0 222.0 2.0 n/a 0.25 0.70
230.0 232.0 2.0 n/a 0.59 1.40
240.0 242.0 2.0 n/a 0.22 0.50
SHAR15240 808,074.2 9,156,549.2 2926.5 61 36 210 RC 88.0 108.0 20.0 n/a 0.66 2.75
132.0 178.0 46.0 n/a 0.30 1.84
186.0 194.0 8.0 n/a 0.26 1.45
204 206 2.0 n/a 0.408 30.9
SHAR15241 808,083.5 9,156,490.0 2912.4 62 36 300 RC 88.0 96.0 8.0 n/a 0.23 0.28
186.0 190.0 4.0 n/a 0.44 0.50
196.0 198.0 2.0 n/a 0.23 0.10
210.0 212.0 2.0 n/a 0.38 0.20
SHAR15242 808,226.9 9,156,449.3 2872.3 61 39 258 RC 32.0 50.0 18.0 n/a 0.27 1.87
60.0 72.0 12.0 n/a 0.51 1.03
78.0 80.0 2.0 n/a 0.22 0.40
102.0 112.0 10.0 n/a 0.36 0.46
190.0 218.0 28.0 n/a 0.23 1.06
228.0 230.0 2.0 n/a 0.39 0.80
92.0 94.0 2.0 n/a 1.63 0.70
SHAR15243 808,297.9 9,156,487.8 2872.7 59 25 230 RC 174.0 188.0 14.0 n/a 0.25 2.11
SHAR15244 808,136.0 9,156,396.0 2893.0 59 37 300 RC nosignificantintercepts
STEPOUTDRILLING
(m) (m)
SHAR15245 808,186.0 9,156,463.3 2883.8 60 36 260 RC 52.0 68.0 16.0 n/a 0.23 1.08
86.0 98.0 12.0 n/a 0.39 0.78
106.0 116.0 10.0 n/a 0.24 0.74
196.0 198.0 2.0 n/a 0.20 0.90
230.0 232.0 2.0 n/a 0.24 1.30
SHAR15246 807,970.1 9,156,518.2 2960.3 60 55 272 RC 110.0 114.0 4.0 n/a 0.34 0.30
214.0 218.0 4.0 n/a 0.21 1.95
SHAR15247 807,992.9 9,156,455.4 2952.2 60 35 300 RC 18.0 20.0 2.0 n/a 0.37 0.10
166.0 168.0 2.0 n/a 0.26 20.10
172.0 174.0 2.0 n/a 0.22 84.10
182.0 194.0 12.0 n/a 0.23 21.77
210.0 212.0 2.0 n/a 0.42 5.10
SHAR15248 808,105.3 9,156,457.8 2899.9 60 35 250 RC 104.0 106.0 2.0 n/a 0.54 0.50
170.0 174.0 4.0 n/a 0.50 1.75
188.0 196.0 8.0 n/a 0.20 2.63
202.0 204.0 2.0 n/a 0.24 0.70
SHAR15249 807,770.4 9,156,759.9 2914.9 60 35 210 RC 60.0 66.0 6.0 n/a 0.67 4.10
72.0 76.0 4.0 n/a 0.22 0.75
SHAR15250 807,771.6 9,156,762.3 2914.4 60 75 210 RC 102.0 104.0 2.0 n/a 0.20 0.30
116.0 120.0 4.0 n/a 0.24 0.75
186.0 190.0 4.0 n/a 1.29 2.05
SHAR15251 807,756.7 9,156,808.8 2912.0 59 35 300 RC 94.0 98.0 4.0 n/a 0.26 1.30
202.0 220.0 18.0 n/a 0.40 6.92
228.0 300.0 72.0 n/a 0.30 3.36
SHAR15252 807,816.4 9,156,797.2 2897.5 61 35 210 RC 46.0 48.0 2.0 n/a 0.36 6.10
58.0 60.0 2.0 n/a 0.33 1.00
98.0 102.0 4.0 n/a 0.29 1.30
108.0 110.0 2.0 n/a 0.22 0.90
176.0 182.0 6.0 n/a 0.44 6.77
204.0 208.0 4.0 n/a 0.32 1.30
SHAR15254 807,824.0 9,156,819.1 2895.2 61 90 180 RC 50.0 60.0 10.0 n/a 0.26 0.74
142.0 146.0 4.0 n/a 0.30 0.25
SHAR15256 807,520.1 9,157,000.6 2966.0 61 35 246 RC 84.0 88.0 4.0 n/a 1.03 7.45
136.0 150.0 14.0 n/a 0.20 0.77
156.0 158.0 2.0 n/a 0.24 0.30
174.0 176.0 2.0 n/a 0.20 0.70
192.0 244.0 52.0 n/a 0.55 20.41
SHAR15257 807,584.4 9,156,897.8 2955.6 59 35 300 RC 104.0 106.0 2.0 n/a 0.34 0.80
118.0 120.0 2.0 n/a 0.60 0.10
216.0 238.0 22.0 n/a 0.22 0.36
252.0 262.0 10.0 n/a 0.48 42.50
288.0 290.0 2.0 n/a 0.20 2.50
294.0 298.0 4.0 n/a 0.32 6.65
STEPOUTDRILLING
(m) (m)
SHAR15258 807,557.9 9,156,976.5 2953.9 61 35 230 RC 22.0 24.0 2.0 n/a 0.24 2.70
30.0 36.0 6.0 n/a 0.35 2.57
44.0 46.0 2.0 n/a 0.25 0.60
54.0 58.0 4.0 n/a 0.20 0.70
124.0 126.0 2.0 n/a 0.30 0.40
168.0 226.0 58.0 n/a 0.39 9.44
SHAR15261 807,943.5 9,157,603.9 2828.3 60 35 172 RC 14.0 18.0 4.0 n/a 0.31 0.55
24.0 30.0 6.0 n/a 0.71 1.10
40.0 42.0 2.0 n/a 0.30 1.80
60.0 62.0 2.0 n/a 0.25 0.70
94.0 98.0 4.0 n/a 0.32 2.90
SHAR15262 807,894.3 9,157,624.2 2839.7 60 35 230 RC 10.0 14.0 4.0 n/a 0.21 1.80
SHAR15264 807,802.8 9,157,733.5 2848.0 60 35 270 RC 12.0 16.0 4.0 n/a 0.20 2.60
24.0 26.0 2.0 n/a 1.49 48.30
66.0 74.0 8.0 n/a 0.36 2.53
80.0 84.0 4.0 n/a 0.54 1.65
92.0 178.0 86.0 n/a 0.59 2.76
234.0 238.0 4.0 n/a 0.36 4.30
SHAR15265 807,520.5 9,157,663.4 2866.8 60 35 200 RC 0.0 2.0 2.0 n/a 0.25 2.10
10.0 12.0 2.0 n/a 0.23 1.30
28.0 54.0 26.0 n/a 0.32 2.88
SHAR15270 808,038.7 9,156,603.8 2942.2 62 35 204 RC 8.0 10.0 2.0 n/a 0.21 0.20
170.0 172.0 2.0 n/a 0.25 0.90
SHAR15271 807,729.0 9,156,880.4 2913.9 61 35 240 RC 166.0 168.0 2.0 n/a 0.20 0.10
SHAR15272 807,130.8 9,156,883.0 3024.7 60 35 300 RC 194.0 196.0 2.0 n/a 0.29 3.30
218.0 220.0 2.0 n/a 0.38 8.30
234.0 236.0 2.0 n/a 0.31 2.70
SHAR15274 807,148.5 9,157,010.8 3030.9 60 35 284 RC 162.0 164.0 2.0 n/a 0.27 18.20
190.0 192.0 2.0 n/a 0.23 0.60
SHAD15001S 809,501.3 9,156,274.2 2552.4 60 32 202.2 core 2.2 4.3 2.1 n/a 0.25 6.00
62.0 69.0 7.0 n/a 1.20 12.57
including 67.2 69.0 1.8 n/a 3.48 4.70
SHAD15003S 809,137.5 9,156,153.6 2697.9 60 35 155.2 core 0.0 24.3 24.3 n/a 0.79 1.85
42.0 50.0 8.0 n/a 0.35 4.15
STEPOUTDRILLING
(m) (m)
SHAD15009S 808,756.3 9,156,768.9 2795.3 61 216 200.2 core 166.9 168.9 2.0 n/a 0.21 0.90
175.8 176.3 0.5 n/a 0.27 3.30
185.7 200.2 14.5 n/a 0.29 5.59
SHAD15010S 808,981.2 9,156,403.9 2735.7 61 34 200 core 108.9 113.6 4.7 n/a 0.44 0.56
150.1 159.9 9.8 n/a 0.44 1.79
173.9 175.5 1.6 n/a 0.20 0.70
192.1 200.0 7.9 n/a 0.41 1.78
SHAD15011S 808,840.6 9,156,715.5 2771.9 61 213 200.2 core 92.5 100.5 8.0 n/a 0.16 1.14
140.1 141.9 1.8 n/a 0.23 0.70
154.7 156.7 2.0 n/a 0.24 2.40
167.0 200.2 33.2 n/a 0.42 2.55
SHAD15012S 808,597.0 9,156,535.8 2796.3 61 31 203.5 core 50.0 52.0 2.0 n/a 0.29 4.20
186.2 191.2 5.0 n/a 0.27 0.87
197.0 202.0 5.0 n/a 0.23 0.88
SHAD15013S 808,442.2 9,156,566.5 2835.1 62 33 200 core 95.9 97.6 1.7 n/a 0.38 7.30
SHAD15017S 808,969.8 9,156,117.0 2725.1 60 36 200 core 12.7 32.2 19.5 n/a 0.70 10.88
including 22.8 26.5 3.7 n/a 2.53 50.78
70.4 90.8 20.4 n/a 0.20 0.99
SHAD15018S 808,890.1 9,156,184.4 2707.8 60 35 200.5 core 54.0 61.6 7.6 n/a 0.27 0.71
SHAD15019S 809,232.9 9,156,407.7 2667.7 62 37 200.7 core 31.3 36.0 4.7 n/a 0.33 0.21
47.5 58.2 10.7 n/a 1.00 8.73
including 47.5 49.0 1.5 n/a 3.05 6.00
SHAR15299 808,348.9 9,156,337.3 2834.7 60 35 200 RC 182.0 188.0 6.0 n/a 1.26 29.47
including 182.0 184.0 2.0 n/a 3.38 84.30
SHAR15301 808,646.6 9,155,975.6 2827.9 60 35 96 RC 50.0 56.0 6.0 n/a 0.29 1.53
SHAR15304 808,229.9 9,156,329.0 2868.5 61 35 156 RC 6.0 22.0 16.0 n/a 0.37 0.24
94.0 96.0 2.0 n/a 1.03 45.20
144.0 154.0 10.0 n/a 0.24 0.60
SHAR15328 809,015.5 9,156,085.3 2714.4 62 35 100 RC 26.0 32.0 6.0 n/a 0.27 1.20
40.0 42.0 2.0 n/a 0.21 1.00
52.0 66.0 14.0 n/a 0.37 1.90
SHAR15329 808,993.9 9,156,093.8 2714.2 61 35 100 RC 48.0 52.0 4.0 n/a 0.30 0.70
SHAR15330 809,055.1 9,156,170.9 2684.8 61 35 84 RC 8.0 10.0 2.0 n/a 2.99 52.40
22.0 38.0 16.0 n/a 0.40 5.55
SHAR15333 809,103.3 9,156,167.9 2686.0 60 35 96 RC 26.0 34.0 8.0 n/a 0.24 1.88
SHAR15334 809,122.8 9,156,126.0 2695.7 60 35 70 RC 2.0 14.0 12.0 n/a 0.56 1.90
30.0 32.0 2.0 n/a 0.48 0.90
46.0 58.0 12.0 n/a 0.50 1.13
CONDEMNATIONDRILLINGSOUTHEASTEXTENSION
(m) (m)
SHAD15001S 809,501.3 9,156,274.2 2552.4 60 32 202.2 core 2.2 4.3 2.1 1.8 0.25 6.00
62.0 69.0 7.0 n/a 1.20 12.57
including 67.2 69.0 1.8 n/a 3.48 4.70
SHAD15003S 809,137.5 9,156,153.6 2697.9 60 35 155.2 core 0.0 24.3 24.3 21.0 0.79 1.85
42.0 50.0 8.0 n/a 0.35 4.15
SHAD15009S 808,756.3 9,156,768.9 2795.3 61 216 200.2 core 166.9 168.9 2.0 n/a 0.21 0.90
175.8 176.3 0.5 n/a 0.27 3.30
185.7 200.2 14.5 n/a 0.29 5.59
SHAD15010S 808,981.2 9,156,403.9 2735.7 61 34 200 core 108.9 113.6 4.7 n/a 0.44 0.56
150.1 159.9 9.8 n/a 0.44 1.79
173.9 175.5 1.6 n/a 0.20 0.70
192.1 200.0 7.9 n/a 0.41 1.78
SHAD15011S 808,840.6 9,156,715.5 2771.9 61 213 200.2 core 92.5 94.0 1.5 n/a 0.20 2.20
95.3 97.0 1.7 n/a 0.28 1.00
99.0 100.5 1.5 n/a 0.21 0.40
140.1 141.9 1.8 n/a 0.23 0.70
154.7 156.7 2.0 n/a 0.24 2.40
167.0 200.2 33.2 n/a 0.42 2.55
SHAD15012S 808,597.0 9,156,535.8 2796.3 61 31 203.5 core 50.0 52.0 2.0 n/a 0.29 4.20
186.2 191.2 5.0 n/a 0.27 0.87
197.0 202.0 5.0 n/a 0.23 0.88
SHAD15013S 808,442.2 9,156,566.5 2835.1 62 33 200 core 95.9 97.6 1.7 n/a 0.38 7.30
SHAD15017S 808,969.8 9,156,117.0 2725.1 60 36 200 core 12.7 32.2 19.5 n/a 0.70 10.88
including 22.8 26.5 3.7 n/a 2.53 50.78
70.4 72.4 2.0 n/a 0.33 0.90
77.6 90.8 13.2 n/a 0.22 1.02
SHAD15018S 808,890.1 9,156,184.4 2707.8 59 35 200.5 core 52.0 55.5 3.5 n/a 0.37 0.51
60.0 61.6 1.6 n/a 0.45 1.00
SHAD15019S 809,232.9 9,156,407.7 2667.7 62 37 200.7 core 31.3 36.0 4.7 n/a 0.33 0.21
47.5 58.2 10.7 n/a 1.00 8.73
including 47.5 49.0 1.5 n/a 3.05 6.00
SHAR15299 808,348.9 9,156,337.3 2834.7 60 35 200 RC 182.0 188.0 6.0 n/a 1.26 29.47
including 182.0 184.0 2.0 n/a 3.38 84.30
SHAR15301 808,646.6 9,155,975.6 2827.9 60 35 96 RC 50.0 56.0 6.0 n/a 0.29 1.53
SHAR15304 808,229.9 9,156,329.0 2868.5 61 35 156 RC 6.0 22.0 16.0 9.2 0.37 0.24
94.0 96.0 2.0 n/a 1.03 45.20
144.0 154.0 10.0 n/a 0.24 0.60
CONDEMNATIONDRILLINGELSAUCE
(m) (m)
SHAR15292 809,121.5 9,156,052.1 2739.2 59 35 102 RC 18.0 20.0 2.0 n/a 0.56 0.10
38.0 42.0 4.0 n/a 0.88 0.10
52.0 54.0 2.0 n/a 0.41 1.30
78.0 80.0 2.0 n/a 0.69 6.60
SHAR15293 809,212.5 9,156,074.3 2700.1 62 36 76 RC 0.0 4.0 4.0 1.9 0.45 0.20
SHAR15294 808,917.3 9,156,033.9 2761.9 61 35 78 RC 20.0 22.0 2.0 n/a 0.26 0.50
SHAR15295 809,184.6 9,156,125.1 2699.1 60 35 78 RC 0.0 4.0 4.0 3.5 0.26 1.15
32.0 64.0 32.0 n/a 1.49 6.10
including 32.0 38.0 6.0 n/a 5.73 25.33
SHAR15297 809,057.4 9,156,093.8 2725.3 60 35 78 RC 56.0 64.0 8.0 n/a 0.27 1.60
74.0 78.0 4.0 n/a 0.20 1.25
SHAR15328 809,015.5 9,156,085.3 2714.4 61 35 100 RC 26.0 32.0 6.0 n/a 0.27 1.20
40.0 42.0 2.0 n/a 0.21 1.00
52.0 54.0 2.0 n/a 0.34 1.50
58.0 66.0 8.0 n/a 0.50 2.65
SHAR15329 808,993.9 9,156,093.8 2714.2 62 35 100 RC 48.0 52.0 4.0 n/a 0.30 0.70
SHAR15330 809,055.1 9,156,170.9 2684.8 61 35 84 RC 8.0 10.0 2.0 n/a 2.99 52.40
22.0 38.0 16.0 n/a 0.40 5.55
26.0 34.0 8.0 n/a 0.24 1.88
SHAR15334 809,122.8 9,156,126.0 2695.7 59.58 35 70 RC 2.0 14.0 12.0 6.9 0.56 1.90
30.0 32.0 2.0 n/a 0.48 0.90
46.0 58.0 12.0 n/a 0.50 1.13
SHAR15335 809,173.9 9,156,156.2 2697.9 60 35 70 RC 0.0 18.0 18.0 15.6 0.58 2.00
44.0 50.0 6.0 n/a 0.38 1.17
SHAR15336 809,199.6 9,156,138.5 2695.3 60 35 70 RC 0.0 6.0 6.0 5.2 0.25 0.73
12.0 26.0 14.0 n/a 0.56 1.63
44.0 54.0 10.0 n/a 1.26 1.76
including 48.0 50.0 2.0 n/a 3.45 3.10
SHAR15337 809,208.3 9,156,108.8 2696.2 60 35 84 RC 42.0 58.0 16.0 n/a 1.28 4.44
SHAR15338 809,157.6 9,156,133.6 2702.6 61 35 70 RC 0.0 12.0 12.0 10.5 0.50 2.43
24.0 26.0 2.0 n/a 0.55 0.80
34.0 62.0 28.0 n/a 0.79 2.61
including 36.0 38.0 2.0 n/a 3.24 9.90
SHAR15339 809,174.6 9,156,097.7 2707.7 60 35 120 RC 10.0 24.0 14.0 n/a 0.46 2.23
SHAR15340 809,136.2 9,156,070.6 2734.8 60 35 132 RC 16.0 18.0 2.0 n/a 0.22 0.10
54.0 68.0 14.0 n/a 1.58 1.63
including 56.0 60.0 4.0 n/a 4.48 1.50
SHAR15341 809,076.6 9,156,084.5 2728.5 62 35 120 RC 16.0 22.0 6.0 n/a 0.51 0.97
42.0 70.0 28.0 n/a 0.27 5.91
SANLORENZODRILLING
(m) (m)
SHAD15019 807,965.0 9,157,899.2 2824.3 61 270 221.3 core 20.0 22.0 2.0 1.0 0.29 3.60
32.5 46.9 14.4 7.2 0.30 6.75
76.0 78.0 2.0 1.0 0.31 8.20
131.5 133.5 2.0 1.0 0.69 20.50
138.0 140.0 2.0 1.0 0.25 3.20
156.4 167.1 10.7 5.3 0.93 1.87
including 156.4 157.8 1.4 0.7 5.93 9.10
197.5 198.7 1.2 0.6 0.20 3.40
SHAD15020 807,792.1 9,157,949.1 2840.3 61 90 200.8 core 18.0 20.0 2.0 1.0 0.21 1.80
31.0 36.0 5.0 2.5 0.32 2.30
50.0 56.9 6.9 3.4 0.70 1.30
105.0 107.0 2.0 1.0 0.72 17.10
113.9 117.2 3.3 1.7 4.30 6.00
129.6 133.6 4.0 2.0 1.61 12.10
142.5 153.0 10.5 5.3 0.96 5.54
SHAR15275 807,643.4 9,157,867.4 2848.1 60 35 212 RC 2.0 4.0 2.0 1.0 0.18 1.00
40.0 56.0 16.0 8.0 0.22 0.86
60.0 62.0 2.0 1.0 0.23 0.60
SHAR15276 807,794.6 9,158,054.2 2889.6 60 300 200 RC 6.0 8.0 2.0 1.0 0.21 1.00
68.0 70.0 2.0 1.0 0.25 0.60
146.0 148.0 2.0 1.0 0.20 0.70
SHAR15277 807,793.6 9,157,997.1 2867.4 60 120 180 RC 12.0 14.0 2.0 1.0 0.29 1.10
28.0 32.0 4.0 2.0 0.34 2.05
64.0 70.0 6.0 3.0 0.21 0.70
80.0 90.0 10.0 5.0 0.48 2.44
SHAR15278 807,852.4 9,158,053.1 2874.7 59 300 200 RC 4.0 6.0 2.0 1.0 0.41 2.20
SHAR15279 807,853.4 9,157,992.6 2871.8 59 120 250 RC 12.0 50.0 38.0 19.0 0.58 6.05
56.0 58.0 2.0 1.0 0.21 3.00
62.0 82.0 20.0 10.0 0.40 3.12
90.0 96.0 6.0 3.0 0.25 4.13
100.0 106.0 6.0 3.0 0.56 2.43
120.0 138.0 18.0 9.0 0.69 7.17
152.0 156.0 4.0 2.0 7.13 22.25
180.0 212.0 32.0 16.0 0.51 3.87
including 194.0 196.0 2.0 1.0 3.19 11.20
216.0 226.0 10.0 5.0 0.22 1.24
234.0 238.0 4.0 2.0 0.21 1.70
SHAR15280 807,894.2 9,157,944.6 2848.3 62 120 200 RC 0.0 8.0 8.0 4.0 0.89 3.78
18.0 22.0 4.0 2.0 0.38 10.45
28.0 38.0 10.0 5.0 0.34 3.42
46.0 50.0 4.0 2.0 0.38 10.55
94.0 96.0 2.0 1.0 0.22 1.90
98.0 100.0 2.0 1.0 0.22 4.10
120.0 122.0 2.0 1.0 0.23 2.70
162.0 168.0 6.0 3.0 0.85 15.07
SANLORENZODRILLING
(m) (m)
SHAR15281 807,972.8 9,158,052.6 2835.4 59 300 180 RC 34.0 36.0 2.0 1.0 0.59 2.50
46.0 74.0 28.0 14.0 0.98 2.88
including 60.0 62.0 2.0 1.0 9.13 6.50
120.0 122.0 2.0 1.0 0.20 0.50
SHAR15282 807,920.9 9,157,898.7 2831.8 60 120 200 RC 10.0 12.0 2.0 1.0 0.28 13.30
16.0 58.0 42.0 21.0 0.45 11.02
186.0 190.0 4.0 2.0 0.44 1.90
SHAR15283 807,833.0 9,157,911.5 2833.6 60 120 224 RC 4.0 6.0 2.0 1.0 0.28 1.50
16.0 48.0 32.0 16.0 0.42 3.79
54.0 60.0 6.0 3.0 0.29 9.40
80.0 82.0 2.0 1.0 1.36 3.90
134.0 138.0 4.0 2.0 0.53 36.05
144.0 146.0 2.0 1.0 0.20 5.90
160.0 162.0 2.0 1.0 0.20 1.40
176.0 186.0 10.0 5.0 0.26 4.74
SHAR15284 807,939.9 9,157,991.8 2840.1 61 300 150 RC 14.0 16.0 2.0 1.0 0.21 8.20
24.0 70.0 46.0 23.0 1.11 3.36
including 54.0 56.0 2.0 1.0 2.87 4.10
including 60.0 66.0 6.0 3.0 3.89 2.27
84.0 86.0 2.0 1.0 0.21 2.10
SHAR15285 807,693.9 9,157,845.7 2833.7 61 35 180 RC 72.0 76.0 4.0 2.0 0.28 5.10
SHAR15286 807,985.8 9,157,946.7 2821.7 60 300 180 RC 36.0 42.0 6.0 3.0 0.64 21.30
62.0 64.0 2.0 1.0 0.22 2.30
66.0 68.0 2.0 1.0 0.28 1.00
78.0 80.0 2.0 1.0 0.39 2.20
154.0 166.0 12.0 6.0 3.84 6.38
including 160.0 164.0 4.0 2.0 10.97 15.10
SHAR15326 808,037.9 9,157,793.0 2788.3 66 125 300 RC 164.0 166.0 2.0 1.0 0.22 2.50
174.0 182.0 8.0 4.0 0.24 100.48
SHAR15331 808,037.1 9,157,793.3 2788.2 61 300 220 RC 56.0 58.0 2.0 1.0 0.37 2.40
76.0 78.0 2.0 1.0 0.91 1.80
SHAR15342 807,792.8 9,157,998.8 2868.3 61 300 120 RC 22.0 24.0 2.0 1.0 0.93 0.90
64.0 66.0 2.0 1.0 0.21 3.50
SHAR15343 807,800.2 9,158,052.5 2889.6 61 120 120 RC 60.0 62.0 2.0 1.0 0.58 0.10
68.0 72.0 4.0 2.0 0.50 1.65
110.0 116.0 6.0 3.0 0.41 1.10
SHAR15344 807,876.0 9,158,102.9 2885.4 60 120 120 RC 72.0 76.0 4.0 2.0 0.47 1.15
100.0 104.0 4.0 2.0 0.23 1.60
SHAR15345 807,853.6 9,158,051.2 2875.3 60 120 120 RC 68.0 70.0 2.0 1.0 0.40 0.90
86.0 92.0 6.0 3.0 1.04 9.33
118.0 120.0 2.0 1.0 0.44 0.30
SHAR15346 807,840.1 9,158,027.5 2877.2 60 120 120 RC 4.0 10.0 6.0 3.0 0.47 0.97
22.0 24.0 2.0 1.0 0.30 2.80
60.0 64.0 4.0 2.0 0.56 4.30
SANLORENZODRILLING
(m) (m)
SHAR15346 807,840.1 9,158,027.5 2877.2 60 120 120 RC 70.0 72.0 2.0 1.0 0.20 1.80
(continued) 94.0 96.0 2.0 1.0 0.30 2.30
108.0 110.0 2.0 1.0 0.21 1.10
114.0 130.0 16.0 8.0 0.40 1.66
SHAR15347 807,933.4 9,158,133.5 2856.0 61 120 120 RC 36.0 44.0 8.0 4.0 0.20 1.08
50.0 80.0 30.0 15.0 1.07 3.08
including 52.0 54.0 2.0 1.0 2.82 2.20
including 74.0 78.0 4.0 2.0 2.74 6.60
140.0 142.0 2.0 1.0 0.21 0.80
SHAR15348 807,900.7 9,157,995.4 2855.6 61 120 120 RC 6.0 72.0 66.0 33.0 2.62 27.49
including 14.0 20.0 6.0 3.0 21.36 182.87
84.0 86.0 2.0 1.0 0.50 5.00
SHAR15349 807,882.0 9,157,921.0 2842.0 60 120 120 RC 0.0 34.0 34.0 17.0 0.61 6.94
46.0 48.0 2.0 1.0 0.37 4.90
90.0 92.0 2.0 1.0 0.25 5.30
SHAR15350 808,000.0 9,158,000.0 2821.0 61 300 120 RC 8.0 10.0 2.0 1.0 0.61 1.10
26.0 28.0 2.0 1.0 0.33 1.50
34.0 44.0 10.0 5.0 0.39 1.74
56.0 58.0 2.0 1.0 0.69 6.80
74.0 76.0 2.0 1.0 0.23 1.20
102.0 106.0 4.0 2.0 0.50 8.60
SHAR15351 807,902.0 9,158,052.0 2859.0 61 120 120 RC 24.0 26.0 2.0 1.0 0.74 11.30
38.0 46.0 8.0 4.0 0.23 0.90
64.0 90.0 26.0 13.0 2.54 8.54
including 68.0 76.0 8.0 4.0 4.64 19.73
including 86.0 90.0 4.0 2.0 3.19 3.75
100.0 102.0 2.0 1.0 0.20 1.70
CHOLOQUEDRILLING
(m) (m)
SHAD15021 808,333.1 9,157,947.0 2774.5 61 270 300 core 129.9 131.4 1.5 0.8 0.35 4.20
SHAR15305 808,320.0 9,157,900.0 2777.0 60 270 270 RC 32.0 34.0 2.0 1.0 0.20 52.40
116.0 118.0 2.0 1.0 0.26 5.90
150.0 156.0 6.0 3.0 0.28 4.03
258.0 260.0 2.0 1.0 0.20 3.40
SHAR15306 808,232.0 9,157,749.0 2821.0 60 270 234 RC 26.0 28.0 2.0 1.0 0.23 13.40
42.0 44.0 2.0 1.0 0.20 5.40
150.0 154.0 4.0 2.0 0.25 34.35
168.0 194.0 26.0 13.0 4.02 18.58
including 172.0 178.0 6.0 3.0 14.55 48.70
224.0 234.0 10.0 5.0 8.42 102.22
including 232.0 234.0 2.0 1.0 41.43 486.00
SHAR15327 808,199.6 9,157,646.3 2838.4 60 270 300 RC 140.0 176.0 36.0 18.0 2.27 53.54
including 150.0 152.0 2.0 1.0 26.91 344.00
including 160.0 164.0 4.0 2.0 4.02 83.70
226.0 228.0 2.0 1.0 0.45 13.80
244.0 260.0 16.0 8.0 2.89 98.84
including 244.0 252.0 8.0 4.0 5.43 116.48
including 244.0 246.0 2.0 1.0 18.07 413.00
294.0 296.0 2.0 1.0 0.24 12.10
SHAR15332 808,271.3 9,157,825.7 2801.1 62 270 262 RC 4.0 6.0 2.0 1.0 0.40 0.30
12.0 14.0 2.0 1.0 0.20 1.90
146.0 152.0 6.0 3.0 0.58 6.40
178.0 182.0 4.0 2.0 0.22 3.10
218.0 220.0 2.0 1.0 0.57 12.70
LACHILCADRILLING
(m) (m)
SHAD15022 806,220.0 9,158,278.0 3054.0 61 305 100 core 8.0 19.5 11.5 n/a 0.32 3.22
SHAD15023 806,235.0 9,158,348.0 3039.0 59 305 150 core 4.0 73.4 69.4 n/a 1.36 13.64
including 26.0 35.9 9.9 n/a 7.13 64.16
SHAD15024 806,235.0 9,158,348.0 3039.0 61 0 100 core 0.0 54.0 54.0 n/a 1.26 5.80
including 18.0 24.5 6.5 n/a 6.65 3.64
57.0 62.0 5.0 n/a 0.20 3.22

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Technica

al Report on the Shahuindo

Signed this 25th day of January, 2016

/s/ Carl E. Defilippi

/s/ Charles V. Muerhoff

/s/ Tim Williams

Shahuindo Mine, Peru

2.3 Qualified Persons

Shahuindo Mine, Peru

5.6 Population Centers............................................................................................................. 39

Shahuindo Mine, Peru

10.9 Tahoe 2015

11.0 SAMPLE PREPARATIO

Shahuindo Mine, Peru

Shahuindo Mine, Peru

14.7 Block Mode

Shahuindo Mine, Peru

16.8 Mining Equ

Shahuindo Mine, Peru

19.2 Mining Allia

Shahuindo Mine, Peru

Shahuindo Mine, Peru

28.2 Certificate of Qualified

Shahuindo Mine, Peru

Shahuindo Mine, Peru

Figure 13..1-1 Locatio

Shahuindo Mine, Peru

Figure 24..1-5 Sewage Treatment Plant under Construction

Shahuindo Mine, Peru

Shahuindo Mine, Peru

Shahuindo Mine, Peru

Table 14.10-2 Confid

Shahuindo Mine, Peru

Table 22.13-2 Shahuiindo Life of Mine

Shahuindo Mine, Peru

wing events triggered an updated

Constructtion of the Shahuindo

Shahuindo Mine, Peru

The prefeeasibility study supports th

Highlightss of the studyy include:

Shahuindo Mine, Peru

The local climate conssists of two major

As of thee effective datte of this rep

Shahuindo Mine, Peru

The operrating plan will

The Shahuindo deposiit is located on

Mineralizaation at Shahuindo is bestt described as

The princcipal zone off mineralizatiion in the Sh

Shahuindo Mine, Peru

ucture and litthology contrrol the locattion, shape, aand orientatio

Tahoe hass limited information abou

Shahuindo Mine, Peru

Drill coree and RC saampling proccedures, sam

The result of the veriffication progrrams support the estimatio

The mineral processingg and metallu

Results frrom the cyan

Shahuindo Mine, Peru

Tablle 1.12-1 Metallurgical

% Au Recovery 73% 800%

Shahuindo Mine, Peru

Table 1.13-1 is a summ

Table 1.13-1 Sha

Indicated 46.6 0.49 6.5 736 9,778

Inferred 2.6 0.42 7.4 36 626