San Ramon Feasibility Study

AMENDED NI 43-101 TECHNICAL REPORT
FEASIBILITY STUDY OF THE SANTA ROSA GOLD

PROJECT
Prepared for:
Red Eagle Mining Corporation
Issue Date: October 27, 2014
PREPARED BY THE FOLLOWING QUALIFIED PERSONS:
Mr. Stefan Gueorguiev, P. Eng., Lycopodium Minerals Canada Ltd.
Mr. Thomas L. Dyer, P.E., Mine Development Associates
Mr. Michael Lindholm, C.P.G., Mine Development Associates
Mr. W. Joseph Schlitt, Ph.D., P. Eng., Hydrometal Inc.
Mr. Terry Eldridge, P. Eng., Golder Associates South America Ltd.

RED EAGLE MINING CORPORATION
FEASIBILITY STUDY OF THE SANTA ROSA GOLD PROJECT
This report is effective as of the 6th day of October, 2014
[Signed]____________________________________________________ October 27, 2014

Mr. Stefan Gueorguiev, P. Eng., Lycopodium Minerals Canada Ltd. Date
[Signed]____________________________________________________ October 27, 2014

Mr. Thomas L. Dyer, P.E., Mine Development Associates Date
[Signed]____________________________________________________ October 27, 2014

Mr. Michael Lindholm, C.P.G., Mine Development Associates Date
[Signed]____________________________________________________ October 27, 2014

Mr. W. Joseph Schlitt, Ph.D., P. Eng., Hydrometal Inc. Date
[Signed]____________________________________________________ October 27, 2014

Mr. Terry Eldridge, P. Eng., Golder Associates South America Ltd. Date
Page ii
TABLE 43-101 TECHNICAL REPORT

OFNICONTENTS
AMENDED
1.0 SUMMARY 1.16

1.1 Property Description and Ownership 1.17
1.2 Exploration and Mining History 1.18
1.3 Geology and Mineralization 1.19
1.4 Mineral Resource Estimate 1.20
1.5 Mineral Reserve Estimate 1.21
1.6 Mining Methods 1.23
1.7 Mineral Processing and Metallurgical Testwork 1.25
1.8 Recovery Methods and Process Plant Design 1.26
1.9 Project Infrastructure 1.28
1.10 Capital Cost Estimate 1.30
1.10.1 Overall Capital Costs 1.30
1.10.2 Mine Capital Costs 1.31
1.10.3 Plant and Site Infrastructure Capital Costs 1.33
1.11 Operating Cost Estimate 1.34
1.11.1 Mine Operating Costs 1.34
1.11.2 Plant Operating Costs 1.36
1.12 Economic Analysis 1.36
1.13 Conclusions and Recommendations 1.37
1.13.1 Geology and Mineral Resource 1.37
1.13.2 Mining and Mineral Reserves 1.38
1.13.3 Metallurgical testwork and Recovery Methods 1.39
1.13.4 Project Infrastructure 1.40
1.13.5 Environmental Studies, Permitting, and Social and
Community Impact 1.41
1.13.6 Main Conclusion 1.41
2.0 INTRODUCTION 2.1

2.1 General 2.1
2.2 Sources of Information 2.2
2.3 Qualified Persons 2.2
2.4 Site Visits 2.6
3.0 RELIANCE ON OTHER EXPERTS 3.1
4.0 PROPERTY DESCRIPTION AND LOCATION 4.1

4.1 Property Location 4.1
4.2 Colombian Mining Law Regarding Concession Contracts 4.1
4.3 Land Area 4.2
4.4 Agreements and Encumbrances 4.1
4.4.1 Purchase Agreement for Five Original Project Concessions 4.2
4.4.2 Purchase Agreement for LKA-08004 4.2
4.4.3 Purchase Agreement with Bullet 4.2
4.4.4 Purchase Agreement with AngloGold Ashanti Colombia S.A 4.3
4.4.5 Agreement Regarding Artisanal Mining Operations 4.3
4.4.6 Royalties 4.3
4.5 Environmental Liabilities 4.3
5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND

PHYSIOGRAPHY 5.1
Page 1.1
AMENDED5.1
NI 43-101Access to Property
TECHNICAL REPORT 5.1
5.2 Climate 5.2
5.3 Physiography 5.2
5.4 Infrastructure and Local Resources 5.2
5.5 Regional Seismicity 5.2
6.0 HISTORY 6.1

6.1 Exploration History 6.1
7.0 GEOLOGIC SETTING AND MINERALIZATION 7.1

7.1 Geologic Setting 7.1
7.1.1 Regional Geology 7.1
7.1.2 Local Geology 7.5
7.1.3 Property Geology 7.6
7.2 Mineralization 7.6
8.0 DEPOSIT TYPES 8.1
9.0 EXPLORATION 9.1

9.1 Geologic Mapping 9.1
9.2 Geochemistry 9.1
9.3 Geophysics 9.3
9.4 Topography 9.5
10.0 DRILLING 10.1

10.1 Summary 10.1
10.2 Drilling by Red Eagle Mining 10.1
10.3 Drill-Hole Collar Surveys 10.2
10.4 Down-Hole Surveys 10.2
11.0 SAMPLE PREPARATION, ANALYSIS, AND SECURITY 11.1

11.1 Sampling Procedures 11.1
11.1.1 Surface and Adit Sampling 11.1
11.1.2 Drill Sampling 11.1
11.2 Sample Preparation and Analysis 11.2
11.2.2 Drill Samples 11.2
11.3 Sample Security 11.3
11.3.2 Drilling Samples 11.3
11.4 Quality Assurance / Quality Control 11.3
11.4.2 Drill Sampling 11.3
11.5 Bulk Density and Specific Gravity 11.4
11.6 Summary Statement 11.5
12.0 DATA VERIFICATION 12.1

12.1 Database Audit 12.1
12.1.1 Drill-Collar Audit 12.1
12.1.2 Down-Hole Survey Audit 12.1
12.1.3 Geological Data Audit 12.2
12.1.4 Assay Database Audit 12.3
Page 1.2
AMENDED NI 43-10112.1.5 Specific

TECHNICAL Gravity Data
REPORT 12.4
12.1.6 Geotechnical Data 12.4
12.2 Quality Control and Quality Assurance 12.5
12.2.1 Standards Assays 12.5
12.2.2 Field and Preparation Duplicate Sample Assays 12.8
12.2.3 Resource Update (SR-140 to SR-233) 12.11
12.2.4 Blanks 12.14
12.2.5 Check Assays 12.16
12.3 MDA Independent Verification of Drill-Collars 12.21
12.3.1 Initial Resource Estimate (SR-001 to SR-139) 12.21
12.4 MDA Independent Verification of Mineralization 12.22
12.5 Summary Statement on Data Verification 12.23
13.0 MINERAL PROCESSING AND METALLURGICAL TESTING 13.1

13.1 Acme Metallurgical Limited Test Work 13.1
13.2 Kappes, Cassiday & Associates Test Work 13.2
13.2.1 Sample Description 13.3
13.2.2 Whole-ore Leaching 13.4
13.2.3 Flotation with Concentrate Regrinding and Leaching 13.5
13.2.4 Gravity Concentration 13.8
13.2.5 McClelland Laboratories, Inc. Confirmatory Test Work 13.8
13.2.6 McClelland Laboratories, Inc. Test Work on High Grade Ore 13.11
13.2.7 Comminution 13.31
13.2.8 Ore and Concentrate Mineralogy 13.35
13.2.9 Metallurgical QA/QC Program 13.41
13.3 Summary of Metallurgical Test Work 13.43
13.3.1 Metallurgical Results 13.43
13.3.2 Risks and Opportunities 13.46
14.0 MINERAL RESOURCE ESTIMATES 14.1

14.1 Introduction 14.1
14.1.1 Mineral Resource 14.1
14.1.2 Inferred Mineral Resource 14.2
14.1.3 Indicated Mineral Resource 14.2
14.1.4 Measured Mineral Resource 14.3
14.1.5 Modifying Factors 14.3
14.2 Database 14.4
14.3 Underground Workings 14.5
14.4 Mineral Domains 14.5
14.5 Density 14.10
14.6 Sample and Composites Descriptive Statistics 14.11
14.7 Estimation 14.13
14.8 Mineral Resources 14.16
14.9 Discussion of Resources 14.22
15.0 MINERAL RESERVE ESTIMATES 15.1

15.1 Mineral Reserves 15.1
15.2 Economic Parameters 15.6
15.3 Dilution and Ore Loss 15.6
15.4 Reserve Comparison with the Preliminary Economic Assessment 15.7
16.0 MINING METHODS 16.1
Page 1.3
AMENDED16.1
NI 43-101Underground
TECHNICALDevelopment
REPORT 16.1
16.1.2 Portal Construction 16.5
16.1.3 Primary Development 16.12
16.1.4 Haulage Drifts 16.12
16.1.5 Attack Ramps 16.13
16.1.6 Ventilation Shafts, Raises and Drifts 16.13
16.1.7 Other Development 16.13
16.2 Stoping Methods 16.13
16.2.2 Attack Ramp Development 16.16
16.2.3 Development in Ore 16.17
16.2.4 Rib Mining 16.17
16.2.5 Mining Additional Lifts 16.17
16.2.6 Mucking 16.18
16.2.7 Backfill 16.18
16.2.8 Overall Stope Geometry 16.19
16.2.9 Modified MSDF for Wide Stopes 16.20
16.2.10 Modified MSDF for Multiple Veins 16.20
16.2.11 Benefits of MSDF 16.20
16.3 Ventilation 16.21
16.3.2 Equipment Loads 16.26
16.3.3 Airflow Velocity 16.26
16.3.4 Surface Fans 16.26
16.4 Geotechnical Studies 16.27
16.5 Hydrological Studies 16.30
16.6 Development and Production Scheduling 16.35
16.6.1 Mine Development Schedule 16.35
16.6.2 Mine Production Schedule 16.36
16.7 Mine Equipment 16.37
16.8 Manpower 16.39
17.0 RECOVERY METHODS 17.1

17.1 Process Design 17.1
17.1.1 Summary 17.1
17.1.2 Design Philosophy 17.1
17.1.3 Key Process Design Criteria 17.1
17.1.4 Projected Plant Recovery 17.3
17.1.5 Selected Process Flowsheet 17.4
17.2 Process Description 17.7
17.2.1 Run-of-Mine (ROM) Pad 17.7
17.2.2 Crushing Circuit 17.7
17.2.3 Grinding and Classification Circuit 17.8
17.2.4 Flotation and Regrind 17.10
17.2.5 Pre-Leach Thickening 17.11
17.2.6 Leach and Carbon Adsorption 17.11
17.2.7 Acid Wash 17.12
17.2.8 AARL Elution 17.13
17.2.9 Electrowinning and Doré Smelting 17.13
17.2.10 Carbon Regeneration 17.14
17.2.11 Cyanide Destruction Circuit 17.14
17.2.12 Tailings Disposal 17.14
17.2.13 Future Expansion 17.15
17.3 Reagents and Consumables 17.15
Page 1.4
AMENDED17.4
NI 43-101Services
17.4.1 Raw Water 17.16
17.4.2 Fire Water 17.17
17.4.3 Potable Water 17.17
17.4.4 Process Water 17.17
17.4.5 Plant, Instrument, Flotation, and Air Supply 17.18
17.5 Instrumentation and Control 17.18
17.6 Metallurgical Accounting 17.18
18.0 PROJECT INFRASTRUCTURE 18.1

18.1.1 Infrastructure Scope 18.1
18.1.2 Site Access 18.2
18.1.3 Site Plan 18.2
18.1.4 Site Roads 18.4
18.2 Plant Area Buildings 18.6
18.2.1 Buildings General 18.6
18.2.2 Plant Workshop and Main Warehouse 18.6
18.2.3 Reagents Permanent Storage 18.6
18.2.4 Gold Room 18.6
18.2.5 Tails Filtration Building 18.6
18.2.6 Plant Air Compressors/ Blower Shed 18.7
18.2.7 Filter Area Compressors Shed 18.7
18.2.8 Guard House 18.7
18.2.9 Plant Administration Building 18.7
18.2.10 Assay and Metallurgical Laboratory 18.7
18.2.11 Plant Control Room 18.8
18.2.12 Crusher Control Room 18.8
18.2.13 Main Switch Room 18.8
18.2.14 Reagents Switch Room 18.8
18.2.15 Filter Plant Switch Room 18.8
18.3 Mine Area Buildings 18.9
18.3.1 Truck Shop 18.9
18.3.2 Warehouse 18.9
18.3.3 Explosives Storage 18.9
18.4 Building Fire Protection Systems 18.9
18.5 Sewage Treatment 18.10
18.6 Security System and CCTV Monitoring 18.10
18.7 Site Services 18.10
18.7.1 First Aid 18.10
18.7.2 Communication Systems 18.10
18.7.3 Underground Communications 18.11
18.7.4 Transportation 18.11
18.7.5 Solid Waste Disposal 18.11
18.8 Fuel Delivery and Storage 18.11
18.9 Site Fencing 18.11
18.10 Power Supply and Distribution 18.12
18.10.1 Power Supply – Incoming 18.12
18.10.2 Main Transformer and Medium Voltage Switchgear 18.12
18.10.3 Power Distribution 18.13
18.10.4 Power Demand 18.13
18.10.5 Process Plant Power Demand 18.13
Page 1.5
AMENDED NI 43-10118.10.6 Mine REPORT

TECHNICAL Area Power Requirements 18.14
18.10.7 Voltage Selection 18.16
18.10.8 Voltage Drops Limit 18.17
18.10.9 Supply Voltage 18.17
18.10.10 Emergency Power Supply - Process Plant 18.17
18.10.11 Emergency Power Supply – Mine Area 18.18
18.10.12 Construction Power 18.18
18.10.13 Power Quality 18.18
18.10.14 Lightning Protection System (LPS) 18.18
18.10.15 Electrical Switch Rooms 18.19
18.11 Transportation and Logistics 18.19
18.11.1 General 18.19
18.11.2 Port of Barranquilla 18.20
18.11.3 Port of Buenaventura 18.21
18.11.4 Containerized Cargo and Legal Load Trucking 18.21
18.12 Waste Rock and Tailings Facility 18.22
18.12.1 Design Concept 18.22
18.12.2 Geotechnical Investigation 18.23
18.12.3 Dry Waste Management Facility Design 18.30
18.12.4 DWMF Slope Stability 18.32
18.12.5 Deposition Plan 18.33
18.12.6 DWMF Water Management 18.36
18.12.7 Soil and Topsoil Storage 18.39
18.12.8 Preliminary Acid Drainage Considerations 18.40
19.0 MARKET STUDIES AND CONTRACTS 19.1

19.1 Marketing Studies 19.1
20.0 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY

IMPACT 20.1
20.1.1 Requirement For EIA 20.1
20.1.2 Objectives of the EIA 20.2
20.2 Environmental Licensing 20.2
20.2.1 Process Stages of the Santa Rosa Gold Project 20.3
20.2.2 Community Participation 20.4
20.3 The Company 20.5
20.4 The Santa Rosa Gold Project 20.5
20.5 Baseline Studies 20.7
20.5.1 Baseline Study Consultants 20.7
20.5.2 Areas of Influence 20.7
20.5.3 Abiotic Environment 20.11
20.5.4 Biotic Environment 20.22
20.5.5 Socio-Economic Environment 20.25
20.6 Corporate Social Responsibility 20.33
20.6.1 Introduction 20.33
20.6.2 Relations with Stakeholders 20.33
20.6.3 Consultation 20.35
20.6.4 Social Management Plan 20.37
20.7 Natural Resource Requirements 20.38
20.8 Environmental Assessment 20.41
20.8.1 Assessment Process 20.41
Page 1.6
AMENDED20.9
NI 43-101Impact Assessment
20.10 Environmental Zoning 20.45
20.11 Environmental Management Plan 20.46
20.11.2 Management Programs 20.46
20.12 Emergency Plans 20.61
20.13 Closure Plan 20.63
20.13.1 Partial Closure 20.63
20.13.2 Gradual Closure 20.64
20.13.3 Temporary Closure 20.64
20.13.4 Final Closure and Post-closure 20.64
20.14 Investment Plan 20.67
20.14.2 Investment Formula 20.67
20.14.3 Investment Proposals 20.67
20.14.4 Additional Investments 20.67
20.15 Feasibility Study, September, 2014 Update 20.68
20.15.1 Technical Differences 20.68
21.0 CAPITAL AND OPERATING COSTS 21.1

21.1 Mine Capital Costs 21.1
21.1.1 Mine Capital Cost 21.1
21.2 Mine Operating Cost Estimate 21.8
21.2.1 Mine Operating Cost 21.8
21.3 Process Plant Capital Costs 21.32
21.3.2 Summary 21.32
21.3.3 Estimate Support Documents 21.33
21.3.4 Procurement 21.35
21.3.5 Earthworks 21.35
21.3.6 Concrete 21.36
21.3.7 Steelwork 21.36
21.3.8 Plate work and Tankage 21.36
21.3.9 Mechanical Equipment 21.37
21.3.10 Plant Pipework and Valves 21.37
21.3.11 Overland Piping 21.37
21.3.12 Electrical and Instrumentation 21.37
21.3.13 Buildings 21.38
21.3.14 Labour Rates and Crew Rates 21.38
21.3.15 Contractors’ Indirects 21.39
21.3.16 Productivity 21.39
21.3.17 EPCM Services 21.40
21.3.18 Working Capital 21.40
21.3.19 Vendor Commissioning 21.40
21.3.20 Spares 21.40
21.3.21 First Fills Inventory 21.41
21.3.22 Exchange Rates 21.41
21.3.23 Freight 21.41
21.3.24 Owners’ Costs 21.41
21.3.25 Contingency 21.42
21.3.26 Qualifications for Capital Cost Estimate 21.42
21.4 Process Plant Operating Cost Estimate 21.43
Page 1.7
AMENDED NI 43-10121.4.1 Introduction

21.4.2 Plant Design Parameters 21.44
21.4.3 Qualifications and Exclusions 21.44
21.4.4 Operating Cost Accuracy 21.44
21.4.5 Cost Categories 21.44
21.4.6 Process Plant Labour 21.45
21.4.7 Consumables 21.48
21.4.8 Power 21.51
21.4.9 Maintenance 21.51
21.4.10 General and Administration Costs 21.52
21.4.11 Plant Operating Cost Summary 21.54
22.0 ECONOMIC ANALYSIS 22.1

22.2 Principal Assumptions 22.2
22.2.1 Life-of-Mine Process Plant Feed Schedule and Recovery 22.2
22.2.2 Gold Selling Price, Exchange Rate and Escalation 22.2
22.2.3 Revenue Deductions - Refining Costs and Royalties 22.2
22.2.4 Land Reclamation Cost 22.3
22.2.5 Working Capital 22.3
22.2.6 Taxes 22.3
22.2.7 Depreciation 22.4
22.2.8 Cash-flow Model 22.4
22.2.9 Financial Results 22.6
22.2.10 Economic Sensitivity 22.6
23.0 ADJACENT PROPERTIES 23.1
24.0 OTHER RELEVANT DATA 24.1

24.1 Project Execution Strategy – Mining 24.1
24.2 Project Execution Strategy – Plant and Infrastructure 24.6
24.3 Detailed Engineering and Design 24.7
24.4 Procurement Management 24.8
24.5 Contracts Management 24.9
24.5.1 Strategy 24.9
24.5.2 Bulk Earthworks 24.12
24.5.3 Concrete Supply and Installation 24.12
24.5.4 Field Erected Tankage 24.13
24.5.5 Structural Steel Supply and Fabrication 24.13
24.5.6 Structural, Mechanical and Piping (SMP) Installation Works 24.13
24.5.7 Electrical and Instrumentation (E&I) Installation Works 24.14
24.6 Construction Management 24.14
24.7 Commissioning 24.15
24.7.1 General 24.15
24.7.2 Pre-commissioning and Testing 24.16
24.7.3 Mechanical Completion 24.16
24.7.4 Wet Commissioning 24.16
24.7.5 Process Commissioning 24.17
24.8 Project Close-out and Handover 24.17
24.9 Project Execution Schedule 24.17
25.0 INTERPRETATION AND CONCLUSIONS 25.1
Page 1.8
AMENDED25.1
NI 43-101Geology and Mineral
TECHNICAL REPORT Resource 25.1
25.2 Mining and Mineable Reserves 25.1
25.3 Metallurgical Testing and Recovery Methods 25.2
25.5 Capital Cost Estimate 25.3
25.6 Operating Cost Estimate 25.3
25.7 Economic Analysis 25.4
25.8 Environmental Studies, Permitting, and Social and Community Impact 25.4
25.9 Risks and Opportunities 25.5
26.0 RECOMMENDATIONS 26.1

26.1 Geology and Mineral Resources 26.1
26.2 Mining and Mineral Reserves 26.1
26.3 Metallurgical Testing and Recovery Methods 26.2
26.5 Environmental Studies, Permitting, and Social and Community Impact 26.3
26.6 Main Recommendation 26.3
27.0 REFERENCES 27.1
TABLES
Table 1.1 Mineral Resources 1.21
Table 1.2 Total Proven and Probable Reserves by Material Type 1.22
Table 1.3 Changes from PEA Material Processed to Reserves 1.22
Table 1.4 Mine Development Summary 1.24
Table 1.6 Santa Rosa Gold Project Overall Capital Cost Estimate ($M) 1.31
Table 1.7 Total Mine Capital ($M) 1.32
Table 1.9 Mine Operating Cost 1.35
Table 1.10 Summary of Process Operating Cost Estimate at nominal duty of
360,000 tpa 1.36
Table 1.11 Financial Performance Indicators 1.37
Table 2.1 Technical Report Section List of Responsibility 2.4
Table 4.1 Legal Status of Red Eagle Mining’s Mining Concession Contracts and
Applications 4.3
Table 4.2 Processes Required for Environmental Activities 4.4
Table 12.1 Summary of Gold Results for Standards (SR-001 to SR-139) 12.6
Table 12.2 Comparison of Means for Field Duplicates (SR-001 to SR-139) 12.9
Table 12.3 Comparison of Means for Preparation Duplicates (SR-001 to SR-139) 12.10
Table 12.4 Comparison of Means for Field Duplicates (SR-140 to SR-233) 12.12
Table 12.6 Comparison of Means for Pulp Check Assays, Mean of Pairs = 0.01 to
0.4g Au/t (SR-001 to SR-139) 12.17
Table 12.7 Comparison of Means for Pulp Check Assays, Mean >0.4g Au/t
(SR-001 to SR-139) 12.17
Table 12.8 Comparison of Means for Pulp Check Assays, Mean of Pairs > 0.10g
Au/t (SR-140 to SR-233) 12.19
Table 12.9 Core Recoveries for by Lithologic, Weathering and Oxidation Types 12.20
Table 12.10 MDA Confirmation Samples from Core, Outcrop, and Adits 12.23
Table 13.3 Results of Direct Leaching on All Ore Types and Variability Samples 13.5
Table 13.4 Summary of Optimum Rougher Flotation Results 13.6
Table 13.5 Summary of Concentrate Leach Tests 13.7
Table 13.6 Summary of Gold Recovery from Sulfides with Gravity Concentration 13.8
Page 1.9
Figure
AMENDED13.1NI 43-101Gold Leach Rate
TECHNICAL Profiles, Bottle Roll Test
REPORT 13.9
Table 13.7 Comparable Gold Extractions in the MLI and KCA Tests 13.10
Table 13.8 Comparable Cyanide Consumptions in the MLI and KCA Tests 13.10
Table 13.9 MLI Gold Assays by Size Fraction in the Leach Residues 13.10
Table 13.10 Partial Chemical Composition of the Six Test work Underground
Composites 13.14
Table 13.11 Summary of Results of the Dissolved Oxygen Tests 13.16
Table 13.12 Tail Screen Analysis for Direct Leach Test CY-23 (Composite 4
Ground to a Nominal P80 of 53 µm) 13.19
Table 13.13 Summary results of the E-GRG Tests for Gold 13.21
Table 13.14 Summary of the Gravity / Cyanidation Tests 13.23
Table 13.15 Results of the Optimization Tests Using Composite 6 13.25
Table 13.16 Results of the Float-Combined Leach Tests on the Grade Composites
(with 11 min. concentrate regrind) 13.28
Table 13.17 Comminution Test Results 13.31
Table 13.18 Description of Crusher Work Index Samples 13.32
Table 13.19 Bond Low Impact Crusher Work Index Results 13.32
Table 13.20 Bond Ball Mill and Abrasion Index Results 13.33
Table 13.21 Head Assays on CWi Samples 13.33
Table 13.22 Selected SMC Test Results 13.35
Table 13.23 Cyclosizer Particle Sizing on Unreground Composite 6 Rougher
Concentrate 13.40
Table 14.1 Exploration and Resource Database Descriptive Statistics 14.5
Table 14.2 Density Measurements and Values Applied to the Block Model 14.10
Table 14.3 Descriptive Statistics of Coded Samples 14.12
Table 14.4 Descriptive Statistics of Coded Composites 14.13
Table 14.5 Estimation Parameters 14.15
Table 14.6 Classification Criteria 14.17
Table 14.7 San Ramon Block-Diluted Gold Resources – Measured and Indicated 14.18
Table 14.8 San Ramon Block-Diluted Gold Resources – Inferred 14.19
Table 15.1 Total Proven and Probable Reserves by Material Type 15.3
Table 15.2 Total Proven and Probable Reserves and Dilution 15.4
Table 15.3 Economic Parameters 15.6
Table 15.4 Changes from PEA Material Processed to Reserves 15.8
Table 16.1 Equipment Loads 16.26
Table 16.2 Recommended Maximum Airflow Velocities 16.26
Table 16.3 Estimated Fan Operating Points (Calculated at Ventilation Raise
Collar) 16.27
Table 16.4 Hole Collar Locations 16.32
Table 16.5 Yearly Development Schedule 16.36
Table 16.6 Yearly Mine Production 16.37
Table 16.7 Equipment Requirements and Underground Facilities 16.38
Table 16.8 Mine Personnel Requirements 16.40
Table 17.1 Summary of Key Process Design Criteria 17.2
Table 17.2 Summary of Metallurgical and Anticipated Gold Recoveries 17.3
Table 17.3 Reagent Summary 17.16
Table 18.1 Process Plant Power Requirements 18.14
Table 18.2 Maximum Mine Area Power Demand 18.15
Table 18.3 Mine Area Electrical Equipment in Operation by Year 18.15
Table 18.4 Voltage Levels 18.16
Table 18.5 Supply Voltage 18.17
Table 18.6 Summary of geotechnical investigation 18.23
Page 1.10
Table 18.7NI 43-101Shear

AMENDED strengthREPORT
TECHNICAL estimates for saprolite soil 18.28
Table 18.8 Summary of triaxial strength tests on 'undisturbed' samples 18.29
Table 18.9 Summary of direct shear strength tests on remoulded samples (to be
used as compacted fill) 18.29
Table 18.10 Summary of strength values for in-situ and compacted saprolite 18.29
Table 18.11 Results of slope stability analyses (Golder, 2014b) 18.32
Table 18.12 San Ramón project waste production plan 18.33
Table 21.1 Santa Rosa Gold Project Overall Capital Cost Estimate ($M) 21.1
Table 21.2 Mine Development Capital Cost 21.3
Table 21.3 Contractor Quotation for Development ($/m) 21.4
Table 21.4 Owner’s Cost - Mine Departmental Capital 21.6
Table 21.5 Total Mine Capital 21.7
Table 21.6 Mine Operating Cost 21.9
Table 21.7 Mine Operating Cost per Tonne 21.10
Table 21.8 Annual Drilling Costs 21.12
Table 21.9 Annual Blasting Costs 21.13
Table 21.10 Annual Loading Costs 21.15
Table 21.11 Annual Haulage Costs 21.17
Table 21.12 Annual Ground Support Costs 21.19
Table 21.13 Annual Backfill Costs 21.21
Table 21.14 Annual Mine Support Costs 21.23
Table 21.15 Annual Stope Delineation Costs 21.25
Table 21.16 Annual Ventilation Costs 21.27
Table 21.17 Annual Dewatering Costs 21.29
Table 21.18 Annual Mine General Services 21.31
Table 21.19 Process Plant Estimated Total Installed Costs ($M) 21.33
Table 21.20 Key Documents Level of Development 21.34
Table 21.21 List of Equipment and Materials (Budget Price/Estimation) 21.35
Table 21.22 Crew Rates 21.39
Table 21.23 Productivity Factor (PF) 21.40
Table 21.24 Exchange Rates 21.41
Table 21.25 Wages and Salaries 21.46
Table 21.26 Summary of Major Consumables 21.50
Table 21.27 Summary of Process Plant Power Costs 21.51
Table 21.28 Summary of Maintenance Costs 21.52
Table 21.29 Summary of G&A Costs 21.53
Table 21.30 Summary of Process Operating Cost Estimate (nominal 360,000 tpa
throughput) 21.54
Table 21.31 Area Breakdown of Process Operating Cost Estimate (nominal
360,000 tpa throughput) 21.55
Table 22.2 LOM Process Plant Feed Schedule and Metal Production 22.2
Table 22.3 Santa Rosa Cash-Flow Model 22.5
Table 22.5 Economic Sensitivity to Operating Cost 22.7
Table 22.6 Economic Sensitivity to Capital Cost 22.7
Table 22.7 Economic Sensitivity to Gold Selling Price 22.8
Table 24.1 Procurement Long Lead Items 24.9
Table 24.2 Proposed Major Contracts 24.11
Table 24.3 Major Project Milestones 24.18
Figure 24.1 Project execution schedule 24.19
Table 26.1 Recommended Additional Work Cost Estimate 26.3
Page 1.11
FIGURES
Figure 1.1 Location of the Santa Rosa Gold Project 1.17
Figure 4.1 Location of the Santa Rosa Project 4.1
Figure 4.2 Concessions and Applications Forming the Santa Rosa Gold Project 4.4
Figure 4.3 Concessions and Applications in the Immediate Vicinity of the San
Ramon Deposit 4.1
Figure 5.1 Access to the Santa Rosa Project 5.1
Figure 5.2 Maximum expected magnitude (ML) for Antioquia (Project area inside
red square) From Sánchez (2009) 5.3
Figure 5.3 Peak ground acceleration map from Norma Sismo Resistente
Colombiana (NSR-10, 2010) 5.4
Figure 7.1 Volcano-plutonic Magmatic Arcs and Major Intrusions of the Northern
Andes 7.2
Figure 7.2 Santa Rosa Gold Project Regional Geology 7.4
Figure 7.3 Local Geology in the Vicinity of the Santa Rosa Gold Project 7.5
Figure 7.4 Oxidized Saprolite Exposed in a “Batición” 7.6
Figure 7.5 Water-Powered Stamp Mill 7.7
Figure 7.6 Adits and Baticiones on the Santa Rosa Gold Project 7.8
Figure 9.1 MMI Geochemistry of the Santa Rosa Concessions Showing Gold
Anomalies 9.2
Figure 9.2 First Vertical Derivative of Total Magnetic Intensity 9.3
Figure 9.3 Total Potassium Radiometric Plot 9.4
Figure 10.1 Drill-Hole Location Map in the San Ramon Deposit Area 10.3
Figure 12.1 Control Chart for Gold in Standard #3 (SR-001 to SR-139) 12.5
Figure 12.2 Control Chart for Gold in Standard #7 (SR-140 to SR-233) 12.7
Figure 12.3 Relative Percent Differences for Field Duplicates (SR-001 to SR-139) 12.9
Figure 12.4 Relative Percent Differences for Preparation Duplicates
(SR-001 to SR-139) 12.10
Figure 12.5 Relative Percent Differences for Field Duplicates (SR-140 to SR-233) 12.12
Figure 12.6 Relative Percent Differences for Preparation Duplicates
(SR-140 to SR-233) 12.13
Figure 12.7 Gold in Pulp Blanks vs. Preceding Sample (SR-001 to SR-139) 12.15
Figure 12.8 Gold in Pulp Blanks vs. Preceding Sample (SR-140 to SR-233) 12.15
Figure 12.9 Relative Percent Differences for Pulp Check Assays (SR-001 to SR-
139) 12.16
Figure 12.10 Relative Percent Differences for Pulp Check Assays (SR-140 to SR-
233) 12.18
Figure 12.11 Core Recovery versus Gold Grade 12.20
Figure 13.2 The Location of All Drill Intervals with Grades >2 g Au/t Used in the
Metallurgical Composites 13.13
Figure 13.3 The Gold-Silver Head Grade Relationship 13.15
Figure 13.4 The Relationship between Grind Size and Gold Recovery in a 72-Hr.
Direct Leach 13.18
Figure 13.5 Gravity Recoverable Gold and Silver vs. Grind Size (Composite 3) 13.20
Figure 13.6 Gravity Recoverable Gold by Size Fraction (Composite 3) 13.21
Figure 13.7 Total Gravity Recoverable Gold vs. Head Grade 13.22
Figure 13.8 Concentrate Particle Size Distributions as a Function of Regrind
Conditions 13.26
Figure 13.9 Residue Assays by Size Fraction with and without Regrinding 13.27
Figure 13.10A A Relationship between Gold Head Grade and Recovery 13.29
Page 1.12
Figure
AMENDED13.10B
NI 43-101Adjusted
TECHNICAL Relationship
REPORT between Gold Head Grade and Recovery 13.29
Figure 13.11 Relationship between Head Grade and BMWi Values 13.34
Figure 13.12 Pyrite Grain Cut by Gold (arrow) Veinlet (Credit EGC) 13.36
Figure 13.13 A Polished Section of Sample SR-50051 Showing Crushed Pyrite
Cemented by Sphalerite, Galena-Gold, Quartz and Late-Stage
Carbonate Veinlets (Credit EGC) 13.37
Figure 13.14 Crushed Arsenopyrite (left)-Pyrite (right) Contact with Gold (arrow)
Along the Contact and Extending Along the Fractures (Credit EGC) 13.38
Figure 14.1 Gold Domains and Geology – Section 856500E 14.8
Figure 14.2 Gold Domains and Geology – Section 857700E 14.9
Figure 14.3 Gold Block Model Section 856500E 14.20
Figure 14.4 Gold Block Model Section 857700E 14.21
Figure 15.1 Mineral Reserves 15.5
Figure 15.2 Changes to Tonnage – PEA vs Reserves 15.8
Figure 15.3 Changes to Ounces of Gold – PEA vs Reserves 15.8
Figure 16.1 Underground Development – Long View 16.3
Figure 16.2 Underground Development – Plan View 16.4
Figure 16.3 Portal and Ramp Area Geology 16.5
Figure 16.4 Portal Pad Area 16.6
Figure 16.5 Portal Area Excavation Long Section 16.7
Figure 16.6 Cross-section of Portal Excavation Area 16.8
Figure 16.7 Subsurface Portion of the Ramp 16.9
Figure 16.8 Long Section of the Initial 200 m of the Ramp 16.10
Figure 16.9 Ramp Centerline Projection to Topography 16.11
Figure 16.10 Typical Cross-Section 16.12
Figure 16.11 Mechanized Shrinkage with Delayed Fill: Development in Ore 16.14
Figure 16.12 Mechanized Shrinkage with Delayed Fill: First Lift 16.14
Figure 16.13 Mechanized Shrinkage with Delayed Fill: Second Lift 16.14
Figure 16.14 Mechanized Shrinkage with Delayed Fill: Subsequent Lifts 16.15
Figure 16.15 Mechanized Shrinkage with Delayed Fill: Mucking 16.15
Figure 16.16 Mechanized Shrinkage with Delayed Fill: Backfill 16.15
Figure 16.17 Mechanized Shrinkage with Delayed Fill: Completed Stope 16.16
Figure 16.18 Ventilation Conceptual Design – Phase I 16.23
Figure 16.19 Ventilation Conceptual Design – Phase II 16.24
Figure 16.20 Ventilation Conceptual Design – End of Mine Life 16.25
Figure 16.21 Barton Q Characterization for San Ramon RQD 16.28
Figure 16.22 Bieniawski RMR Classification for San Ramon RQD 16.29
Figure 16.23 Bieniawski Span Tolerances for San Ramon 16.30
Figure 16.24 Geotechnical and Hydrological Drill Program Locations 16.31
Figure 16.25 Drilling of Piezometer Pole PZ-8 (distant) and Water Well W-2
(foreground) 16.32
Figure 16.26 Drilling of Water Well 15 16.33
Figure 16.27 Geological Section Through Hole 15 16.34
Figure 17.1 Projected Gold Recovery vs Mill Head Grade 17.4
Figure 17.2 Santa Rosa Gold Project Simplified Process Flowsheet 17.6
Figure 17.3 Crushing Circuit Layout 17.8
Figure 17.4 Grinding Circuit Layout 17.10
Figure 17.5 Leach and Carbon Adsorption Circuit Layout 17.12
Figure 18.1 Overall Site 3D View 18.2
Figure 18.2 Overall Site Layout 18.5
Figure 18.3 44 kV Overhead Power Line from EPM Substation 18.12
Figure 18.4 Santa Rosa Mine Site Location 18.19
Page 1.13
Figure
AMENDED18.5NI 43-101Port of Barranquilla
Figure 18.6 Port of Buenaventura 18.21
Figure 18.7 General Configuration of the DWMF 18.22
Figure 18.8 Geotechnical Investigation Carried Out in 2014 (Golder, 2014a) 18.24
Figure 18.9 Saprolite Thickness in Project Area (CRA, 2013) 18.26
Figure 18.10 Near-Vertical Cuts in Saprolite 18.27
Figure 18.11 Standard Proctor Test Results (GeoLogic Associates, 2014) 18.31
Figure 18.12 Tailings Particle Size Distribution. Data from GeoLogics Associates,
2014 18.31
Figure 18.13 Critical slip surface for static conditions (Golder, 2014b) 18.32
Figure 18.14 DWMF Deposit Configuration, Pre-mining and Year 1 18.34
Figure 18.15 DWMF Deposit Configuration, Years 1 and 2 18.34
Figure 18.19 Water Management for the DWMF 18.37
Figure 18.20 Runoff discharges for wet, average and dry years (Golder, 2013) 18.38
Figure 18.21 Water Flows for Average Year Conditions 18.39
Figure 18.22 Spoil Saprolite Storage Area 18.40
Figure 21.1 Overall Operating Cost Distribution (nominal 360,000 tpa throughput) 21.54
Figure 21.2 Consumables Cost Distribution 21.56
Figure 21.3 Power Cost Distribution 21.56
Figure 22.1 Project Pre-Tax NPV @ 0% (Undiscounted C.F.) Sensitivity 22.9
Figure 22.2 Project Pre-Tax NPV @ 5% Sensitivity 22.9
Figure 22.3 Project Pre-Tax NPV @ 8% Sensitivity 22.10
Figure 22.4 Project Pre-Tax IRR Sensitivity 22.10
Figure 22.5 Project Post-Tax NPV @ 0% (Undiscounted C.F.) Sensitivity 22.11
Figure 22.6 Project Post-Tax NPV @ 5% Sensitivity 22.11
Figure 22.7 Project Post-Tax NPV @ 8% Sensitivity 22.12
Figure 22.8 Project Post-Tax IRR Sensitivity 22.12
FREQUENTLY USED ACRONYMS AND ABBREVIATIONS
AA atomic absorption spectrometry

ABA acid-base accounting
Ag silver
ARD acid rock drainage
Au gold
CIL carbon-in-leach processing method
CIM Canadian Institute of Mining, Metallurgical, and Petroleum
CIP carbon-in-pulp processing method
cm centimeters
CN cyanide
core diamond core-drilling method
o
C degrees centigrade
DWMF dry waste management facility
Page 1.14
g/t
AMENDED NI 43-101grams per tonne
TECHNICAL REPORT
ha hectares
ICP inductively coupled plasma geochemical analysis
kg kilograms
km Kilometers
kN/m3 kilonewtons per cubic meter
kPa kilopascal
kV kilovolt
kW kilowatt
kWh/year kilowatt-hour per year
kWh/t kilowatt-hour per tonne
L/s liters per second
LHD load-haul dump unit
LNG liquefied natural gas
LOM life of mine
m meters
m3/h cubic meters per hour
µm micron
mm millimeters
MSDF mechanised shrinkage with delayed fill
MMI mobile metal ion geochemical technique
MW megawatt
NaCN sodium cyanide
3
Nm normal cubic meters. Measure of gas volume
oz troy ounce (12 oz to 1 pound)
QA/QC quality assurance and quality control
RC reverse-circulation drilling method
RQD rock-quality designation
t tonnes
TDS total dissolved solids
tpd tonnes per day
tph tonnes per hour
V volts
WAD weak acid dissociable (used for cyanide concentration)
Page 1.15
1.0
AMENDED NI 43-101 TECHNICAL REPORT SUMMARY
The following Technical Report was compiled by Lycopodium Minerals Canada Ltd. (Lycopodium) and
presents the results of the Feasibility Study for the Santa Rosa Gold Project in the Department of
Antioquia, northern Colombia. The Technical Report was prepared at the request of Red Eagle Mining
Corporation (Red Eagle Mining), a British Columbia corporation. Red Eagle Mining is listed on the TSX
Venture exchange (RD) and the OTCQX (RDEMF).
This Feasibility Study was completed by:
 Lycopodium Minerals Canada Ltd. (“Lycopodium”) for the process design, plant
infrastructure, capital and operating cost estimates, and economic analysis;
 Mine Development Associates (“MDA”) for geology, resource, mining and reserves, as
well as mining capital and operating costs;
 Hydrometal Inc. (“Hydrometal”) for metallurgical testwork management, largely

undertaken at McClelland Laboratory Services;
 Golder Associates South America Ltd. (“Golder”) for the design of the dry waste
management facility, and geotechnical and hydrogeological aspects of the project; and
Unless otherwise denoted, all costs referred to in this Technical Report are quoted in current 3Q 2014
United States dollars.
The effective date of the mineral resource estimate is August 5, 2013. The effective date of the Feasibility
Study is October 6, 2014. The effective date of this report is October 6, 2014.
Page 1.16
AMENDED NI 43-101 TECHNICAL

Figure 1.1 REPORT
Location of the Santa Rosa Gold Project
Santa Rosa Gold Project

Site
1.1 Property Description and Ownership
The Santa Rosa Gold Project is located approximately 20 km southeast of the town of Santa Rosa de
Osos, in the municipality of the same name, in the Department of Antioquia, 73 km northeast of the
department capital Medellín in northern Colombia (Figure 4.1). The centre of the resource is located at
approximately latitude 6° 36' 57 N and longitude 75° 22' 20 W. The San Ramon deposit lies in the
southeastern part of concession B7560005 held by Red Eagle Mining and described in more detail in
Section 4.3. The project is accessible from Medellín via a paved highway for about 65 km, then via an
unpaved road for approximately 8 km.
Page 1.17
Red Eagle NI
AMENDED 43-101 property
Mining’s TECHNICALcovers a total area of approximately 33,000 hectares and consists of:
REPORT
 12 concession contracts; and
 14 concession-contract applications for which the technical studies have been approved
and free areas have been declared.
Red Eagle Mining holds a 100% interest in the project, subject to completing payments of $1,790,000 to
the underlying owners and subject to royalty obligations described below. The San Ramon deposit is
located on concession contract B7560005.
There is a government-imposed royalty on gold and silver production that is effectively 3.2%.
Liberty Metals & Mining Holdings (“LMM”), a subsidiary of Liberty Mutual Insurance, Boston, holds a 3%
net smelter return royalty on four concession contracts numbered B7560005, B7171005, H5791005, and
H5790005 and two concession contract applications numbered LDM-08061 and LKA-08004. Red Eagle
Mining may buy back 1% of the royalty for $8,333,333 for a period of two years from the date of the first
gold production. This royalty applies to the concession in which the resource is located (B7560005).
Bullet Holding Corp. (“Bullet”) and AngloGold Ashanti (“AngloGold”) respectively hold non-overlapping
1.5% and 2% net smelter return royalties on those concession contracts and applications that Red Eagle
Mining acquired from them, and still holds. These royalties do not apply to the concession in which the
current resource is located.
1.2 Exploration and Mining History
The gold potential of the Santa Rosa area was recognized around the year 1600, with gold production
from upland placers reaching a peak in the 18th century and mining from high-grade oxide ores peaking in
the 1940s. Based on the existence of the extensive abandoned mine workings, past gold production
appears to have been significant, but actual historic gold production is unknown. Although small-scale
mining by artisanal miners continues some distance outside the San Ramon deposit area, the first known
modern mineral exploration activity was begun by Red Eagle Mining in July 2010. Since that time, Red
Eagle Mining has undertaken the following exploration activities in the San Ramon deposit area:
 Mapping and sampling historic workings and adits;
 Grab, channel, and panel sampling of quartz veins and diorite-granodiorite wall rock;
 Auger saprolite sampling;
 Soil sampling with mobile-metal-ion (“MMI”) analysis, covering over 20 square

kilometers;
 Helicopter-borne magnetic and radiometric surveying;
Page 1.18

Induced-polarization surveying;
 Drilling of 238 exploration core holes totalling 45,609 m between September, 2011 and
May, 2013; and
 Drilling of 11 geotechnical and hydrogeological holes in 2014.
Red Eagle Mining undertook stream-sediment, rock-chip, trench, and MMI geochemical sampling in
addition to mapping of geology and the distribution of adits in the concessions beyond the area of the San
Ramon deposit with the objective of identifying potential targets for mineralization that may become future
satellite feed to the Santa Rosa Gold Project.
1.3 Geology and Mineralization
The north-western margin of South America, including the Santa Rosa Gold Project area, is comprised of
a mosaic of Paleozoic and younger autochthonous and allochthonous terranes that were accreted to the
South American continent. Subduction-related magmatic arcs now represented by plutonic batholiths,
sub-volcanic intrusions, and associated volcanic rocks, were superimposed on these terranes during the
Jurassic, Cretaceous, Eocene to late Miocene, and Late Miocene to Recent periods.
The Santa Rosa Gold Project is located within the Cajamarca-Valdivia terrane that includes a
metamorphic basement complex and the Antioquia Batholith. Lower greenschist- to lower amphibolite-
grade metasedimentary units and oceanic ophiolitic volcanic and intrusive rocks were accreted to the
continental margin in the Ordovician-Silurian periods. These rocks were onlapped by volcanic-
sedimentary units during the Mesozoic. During the Cretaceous period, both the Paleozoic basement
rocks and Mesozoic volcanic-sedimentary units were intruded by the Antioquia quartz-diorite, diorite, and
granodiorite batholith.
Monotonous diorite and quartz diorite (granodiorite) dominate the geology of the project area, with isolated
roof pendants of amphibolites and metasedimentary rocks, as well as dikes of microdiorite and dacite
porphyries. Red-brown saprolite is widespread and often deep (up to 50 m). Soils are generally about
50 cm thick and rarely up to 2 m. Schistose fault-zone mylonite was observed at several locations in
outcrop and adits.
Hypogene gold mineralization within the Santa Rosa Gold Project area is generally associated with shear
zones developed in homogeneous diorite country rock, with higher grades occurring in sulfide-mineralized
quartz veins. Exploration by Red Eagle Mining has identified a strongly mineralized shear zone (San
Ramon deposit shear zone) trending about east-west and containing mineralized quartz veins, sheeted
veins, and anastomosing vein networks. Besides gold, the mineralization contains some silver, significant
quantities of sphalerite, and minor amounts of galena. Sulfides range from 1% to 5% but can reach 10%,
and there appears to be a direct correlation between sulfide content and gold grade. The upper portions
of the mineralized shear zone are oxidized and heavily weathered to saprolite. Historically, gold has been
extracted on the property from these saprolitic, as well as colluvial, gold deposits, by artisanal miners from
underground workings, and from hydraulically mined areas known locally as “baticiones.”
Page 1.19
1.4
AMENDEDMineral
NI 43-101 Resource
TECHNICALEstimate
REPORT
The two resource estimates performed for Red Eagle Mining at the San Ramon deposit have defined an
east-west-trending, shear zone-hosted gold deposit that extends over approximately 2,000 m of strike
length and that predominantly dips 70° to the north and is open at depth. A significant outcome of Red
Eagle Mining’s most recent work is the further development of a comprehensive geologic model, now
based on 238 core holes totalling 45,609 m, which provided the basis of the most recent resource
estimate update (two additional geotechnical / hydrogeological holes encountered mineralization but are
not included in the estimate because they were drilled after the effective date of the resource estimate).
Approximately 75% of the resource is Measured and Indicated, with the remainder Inferred; classification
is primarily a function of drill-spacing. The upgraded classification in the current resource is the result of
increased drill density with substantial infill drilling, as well as improvements in QA/QC procedures,
additional metallurgical testwork, and more comprehensive density and geotechnical data. The reported
estimate, presented in Table 1.1, was performed using inverse distance to the third and fourth power for
estimation of low and higher grade domains, respectively. MDA reports resources at cut-offs that are
reasonable for deposits of this nature given anticipated mining methods and plant processing costs, while
also considering economic conditions, because of the regulatory requirements that a resource exists “in
such form and quantity and of such a grade or quality that it has reasonable prospects for economic
extraction.”
The initial resource in 2012 (reported in January 2013) was reported at a single cut-off grade of 0.3g Au/t.
A subsequent resource in 2013 (reported in September 2013) was reported as a combination of open-pit-
mineable material at a cut-off grade of 0.3g Au/t and underground-mineable material at a cut-off of 1.2g
Au/t. The current resource estimate on which this study is based is the same as the one reported in
September 2013 but is reported at a cut-off grade for only underground mining of 1.2g Au/t. The current
resource estimate also includes a small addition on land not formerly controlled by Red Eagle Mining. The
change in reporting cut-off was appropriate because the mining scenario has been determined to be by
underground methods. Because of the change in cut-off, the resource tabulation summarized in Table 1.1
cannot be directly compared to the initial 2012 resource estimate or the subsequent 2013 resource
estimate.
Page 1.20
AMENDED NI 43-101 TECHNICAL Table

REPORT1.1 Mineral Resources
Total Measured
Cut-off
Tonnes g Au/t oz Au
g Au/t
1.20 678,000 4.270 93,000
Total Indicated
Cut-off
Tonnes g Au/t oz Au
g Au/t
1.20 3,475,000 3.46 386,000
Total Measured & Indicated
Cut-off
Tonnes g Au/t oz Au
g Au/t
1.20 4,153,000 3.59 479,000
Total Inferred
Cut-off
Tonnes g Au/t oz Au
g Au/t
1.20 1,524,000 2.72 133,000
1.5 Mineral Reserve Estimate
Mineral reserves were developed using the resource modelled high-grade domains along with undiluted
grade estimates. The high-grade domains were used as a basis for stope designs. To build up the
mineable reserves, the following steps were performed:
 Expand the high-grade resource estimation domain polygons to a minimum mining width
of 2.5 m resulting in mid-block, level-plan polygons that represent potential stopes;
 Estimate diluted stope grades using only Measured and Indicated undiluted grade
estimates from both high and low-grade estimation domains;
 Apply economic parameters to calculate net value for each block;
 Revise stope polygons to remove negative value blocks where possible;
 Resources inside of each stope polygon were summarized and the economic value for
each stope was calculated;
 Stope polygons with negative values were either modified or eliminated;
 Centreline development was refined to access each stoping area;
 Stope economics were reassessed to include an allocation of development costs

required to mine each stope;
 Final refinement or elimination of stope polygons was completed; and
Page 1.21

Solids REPORT
of the final stope polygons were created and resources inside of each solid were
summarized.
Measured and Indicated resources above and below the economic cut-off grade (oxide 1.96g Au/t,
transition 2.14g Au/t, and sulfide 2.00g Au/t) were summarized within each stope solid. The average
minimum width is 3.0 meters. The mineral reserves are shown in Table 1.2 below:
Table 1.2 Total Proven and Probable Reserves by Material Type
Oxide Mixed Sulfide Total Proven and Probable

K Tonnes g Au/t K Ozs Au K Tonnes g Au/t K Ozs Au K Tonnes g Au/t K Ozs Au K Tonnes g Au/t K Ozs Au
Proven 11 4.60 2 3 3.12 0 415 5.99 80 429 5.93 82
Probable 63 3.91 8 17 4.37 2 1,915 5.08 313 1,995 5.04 323
Proven & Probable 74 4.01 10 20 4.20 3 2,331 5.24 393 2,425 5.20 405
 Dilution by Measured and Indicated blocks included material below the mining cut-off
grade, but above the resource cut-off grades. This dilution totals 188,000 tonnes of
material grading 1.60 g Au/t and is part of the Proven and Probable reserves.
 The stope solids include material that is classified as Inferred resource or was not
estimated, and while the tonnage of this material is included as dilution, no additional
metal content is included. This dilution totals 334,000 tonnes of material at zero grade
and is not part of the Proven and Probable reserves as presented above in Table 1.2.
 On an overall tonnage basis, the total dilution included is approximately 23%.
The diluted Proven and Probable reserves are based on the same resources model that was used in the
Preliminary Economic Assessment of October, 2013 (PEA), with minor changes due to subsequent
additional land to the east of concession B7560005. The changes consider the original diluted material
processed from the PEA, removal of Inferred material, changes to design, and expansion of the minimum
mining width to include external dilution. The comparison is shown in Table 1.3.
Table 1.3 Changes from PEA Material Processed to Reserves
Tonnes g Au/t Ozs Au

PEA Material Processed 3,642,000 4.76 557,300
Remove Inferred (832,000) 4.16 (111,200)
Change due to Design (540,000) 4.26 (73,900)
Add External Dilution 489,000 2.09 32,900
Final Diluted Reserve 2,759,000 4.57 405,100
Page 1.22
1.6
AMENDEDMining
NI 43-101Methods
TECHNICAL REPORT
The San Ramon deposit has been planned as an underground mining operation.
Due to the experience and capabilities found in prospective Colombian contract miners, Red Eagle Mining
elected to use a contract mining group. A contract will be issued for a five year term, with an option to
extend, and with Red Eagle Mining retaining the right to take over the contract at any time should it prefer.
Development will include construction of a decline (which will serve as the access), main haulage drifts,
and attack ramps. Underground ventilation will require ventilation shafts to the surface along with raises
between levels.
The mining method selected is Mechanized Shrinkage with Delayed Fill (“MSDF”). The method is similar
to mechanized cut and fill but uses breast blasting of the back between lifts. Then, rather than mucking of
ore and backfilling immediately, the MSDF method leaves the ore in place in the stope, only removing
enough material from the stope to remove swell (similar to shrinkage stoping but removing the swell from
the top instead of the bottom). Access to the stope is provided by establishing an attack ramp. For each
lift, the attack ramp back is blasted to establish access for the subsequent lift. Support is placed in the
stope as needed during the drilling and blasting cycle of each lift. Once enough lifts have been drilled and
blasted, the ore will be mucked out completely. The last cycle of mining for MSDF stopes is backfilling of
the stope from the bottom up, progressively backfilling the attack ramp as well.
Backfill is to be used as required, but not all stopes will be fully backfilled. The backfill will consist of
filtered tailings and development waste rock. Tailings will be placed in a single lift, and once the lift of
tailings is placed, then a lift of waste rock from development will be placed on top of the tailings. The
amount of waste placed on top of the tailings will be sufficient to allow equipment to drive on top of the
backfill. It has been assumed that 60% tailings and 40% development waste rock will be a suitable
mixture of tailings to waste to stabilize the fill.
The benefits to using MSDF instead of cut-and-fill mining are:
 Because ore is being slashed from the stope back and dropped on ore, dilution and ore
loss during mucking are greatly reduced;
 Because MSDF slashing techniques are used for the bulk of the stope, the powder
factor required is reduced in comparison to cut-and-fill mining;
 Leaving mined ore in the stope helps to maintain stability of the hanging wall and
footwall until the ore is mucked out;
 If development of MSDF stopes is maintained ahead of ore requirements, underground

stockpiles of ore will be available that can be delivered as required to the mill;
 Most of the fill only requires enough strength for equipment to be operated on top of it to
deliver more fill, which reduces cement requirements and costs; and
Page 1.23
 The
method canREPORT
easily be converted to cut-and-fill techniques where ground conditions
become weak.
Geotechnical
A geotechnical analysis of the San Ramon deposit and country rock characteristics was undertaken by
Golder. The conclusions to this study were that the quality for the hanging and foot walls is expected to be
good to very good with minimal support requirements for 20 m spans or less. Occasional support in the
form of bolting and shotcrete may be needed, particularly when the openings encounter a dyke or weak
zone. Conversely, for development along the poor quality shear zone, bolting and reinforcement will be
required at all stages of development.
Hydrological
Two water well drill and pump tests were undertaken to investigate water presence on both the
granodiorite country rock (within an identified fault zone), and the San Ramon deposit shear zone. The
information gained from the two water wells confirmed that the granodiorite country rock yields
insignificant flows and has low conductivity, and the shear zone similarly yields low flows and has low
conductivity, with inflow rates ranging from 0.2 to 2 L/sec. The mine design for pumping has been
conservatively sized for an initial inflow of 5 L/sec, rising to 10 L/sec as the operations increase with depth.
Development and Production Schedules
A significant amount of detail was incorporated into the scheduling of both the mine development and
stope production. Each area (totalling 106) and the development necessary to access the areas, was
incorporated into a monthly schedule for the mine life.
Table 1.4 shows the development schedule over the life of the mine.
Table 1.4 Mine Development Summary
Units Yr -1 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Total
Portal (Portal costs are in Capital) m 30 - - - - - - - - 30
Sublevel Ramp m 484 1,810 2,557 576 795 1,954 370 820 1,738 11,104
Haulage Drift m - 302 155 - 704 173 153 109 218 1,813
Main Ramp m 1,106 640 365 365 365 366 730 444 - 4,381
Ventilation Drift m 8 53 106 - 96 24 8 43 46 383
Ventilation Raise m - 171 200 - 147 - 63 57 177 815
Attack Ramp m - 938 239 2,696 1,634 1,098 721 610 1,184 9,120
Total m 1,627 3,914 3,622 3,637 3,742 3,614 2,044 2,084 3,362 27,646
Sublevel Ramp Tonnes 24,494 91,643 129,465 29,143 40,247 98,918 18,753 41,489 87,999 562,152
Haulage Drift Tonnes - 15,290 7,823 - 35,633 8,739 7,746 5,538 11,030 91,798
Main Ramp Tonnes 57,497 32,400 18,478 18,478 18,478 18,529 36,956 22,486 - 223,303
Ventilation Drift Tonnes 392 2,677 5,373 - 4,878 1,209 392 2,178 2,308 19,406
Ventilation Raise Tonnes - 3,018 3,529 - 2,604 - 1,106 1,014 3,130 14,400
Attack Ramp Tonnes - 14,658 3,740 42,125 25,536 17,150 11,260 9,534 18,494 142,497
Total Tonnes 82,384 159,686 168,408 89,746 127,376 144,545 76,213 82,239 122,960 1,053,556
Table 1.4 shows a total of almost 28 km of development drifts over the mine life, and averaging 3.5 km per
year. The main decline will eventually be 4.4 km in length at a 14% gradient.
Page 1.24

Table 1.5 shows the production schedule over the life of the mine.
Table 1.5 Production Schedule
Mine Production Schedule Yr -1 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Total

Oxide K Tonnes 0 15 - 0 1 21 22 8 8 75
g Au/t 2.60 5.12 - 1.75 3.47 4.07 4.20 2.68 2.29 3.96
K ozs Au 0 2 - 0 0 3 3 1 1 10
Mixed K Tonnes - 6 0 1 1 1 1 9 0 20
g Au/t - 6.55 2.40 3.63 3.59 3.58 3.40 2.86 2.13 4.16
K ozs Au - 1 0 0 0 0 0 1 0 3
Sulfide K Tonnes 9 298 320 321 318 295 293 304 193 2,351
g Au/t 3.65 6.96 7.58 5.03 4.63 5.41 3.64 3.12 5.11 5.20
K ozs Au 1.0 66.8 78.0 51.9 47.3 51.2 34.3 30.5 31.8 393
Total K Tonnes 9 319 320 322 320 317 317 321 201 2,446
g Au/t 3.63 6.87 7.58 5.02 4.62 5.31 3.68 3.10 5.00 5.15
K ozs Au 1.0 70.5 78.0 52.0 47.5 54.1 37.5 32.1 32.3 405
Internal Waste K Tonnes 1 40 40 38 40 44 43 39 27 312
Total Diluted Material K Tonnes 10 359 360 360 360 361 360 360 228 2,759
Mined g Au/t 3.13 6.11 6.74 4.49 4.11 4.67 3.24 2.77 4.42 4.57
K ozs Au 1.0 70.5 78.0 52.0 47.5 54.1 37.5 32.1 32.3 405
Total K Tonnes - 352 360 360 360 361 360 360 245 2,759
g Au/t - 6.21 6.74 4.49 4.11 4.67 3.24 2.77 4.25 4.57
K ozs Au - 70 78 52 48 54 37 32 34 405
K Ozs Rec - 68 75 50 45 52 36 30 32 388
Net Rec 0% 96% 97% 95% 95% 96% 95% 95% 96% 96%
Metallurgical recoveries and the resulting gold production from the process plant are also shown in this
Table 1.5. A total of 143,000 ounces are produced in the first 2 years.
1.7 Mineral Processing and Metallurgical Testwork
In 2014 the metallurgical program for this Feasibility Study was oriented towards samples that reflected
the range of head grades expected in the underground operation, namely 2 to 9 g Au/t. This program has
been conducted by McClelland Laboratories, Inc. in Sparks, Nevada. Three process options have been
tested in detail:
 Whole ore cyanide leaching of finely ground ore in an agitated leach circuit;
 Initial gravity concentration of the coarse gold, followed by grinding and agitated cyanide
leaching of the combined gravity tailings; and
 A fairly coarse primary grind (P80 of 125 microns), followed by flotation of the sulfides.
The resulting rougher concentrate is then reground to a P 80 of 20 microns, blended back
into the flotation tailings, and the combined product is cyanide leached in an agitated
circuit.
Page 1.25
All three routes

AMENDED TECHNICAL
were
NI 43-101 capable ofREPORT
recovering between 93 to 96% of the gold. However, the flotation-
combined leach route has been selected as the preferred option, achieving optimum gold recovery. This
approach requires the least fine grinding (lowest grinding costs) and will recover an average of 96% of the
gold over the life of the operation. An estimated 69 % of the contained silver will also be recovered,
contributing to project revenue, though not included in this economic analysis.
Reagent consumptions in the float-combined leach process are as low as or lower than they are in the
other processes. Cyanide consumption averages 0.39 kilograms of sodium cyanide per tonne of ore and
lime consumption averages 1.6 kilograms per tonne of ore.
Additional testwork is still underway. This includes cyanide destruction (detox) tests using SO 2 / air, initial
liquid / solid separation tests and carbon loading tests.
1.8 Recovery Methods and Process Plant Design
Based on the metallurgical testwork Lycopodium selected an overall process plant flowsheet which
includes grinding and flotation followed by concentrate regrinding. The flotation tailings and reground
concentrate are together leached in a CIL circuit. Cyanide in the CIL tailings will be detoxified using the
SO2 / Air process prior to the tailings being filtered. Part of the filtered tailings will be dry stacked in a dry
waste management facility (DWMF), the balance will be used as backfill in the mine. Filtrate will be
recycled back to the process plant to minimise the raw water requirement.
The process plant for the Santa Rosa Gold Project is based on a robust metallurgical flowsheet designed
for optimum recovery with minimum operating costs. The flowsheet is based upon unit operations that are
well proven in industry.
The key project and ore specific criteria that the plant design must meet are:
 The plant is designed for an initial throughput of 360,000 tpa with provision for future
expansion to at least 720,000 tpa;
 Testwork shows that the ore is of medium hardness with average head grades over the
life of the project of 4.57 g/t gold and 8.5 g/t silver;
 Mechanical availability for the process plant of 91.3%;
 A level of automation to reduce the technical complexity of the plant with manual
operation where practical;
 Equipment selection for reliability and ease of maintenance; and
 Layout for ease of access to all equipment for operating and maintenance requirements
whilst maintaining a compact footprint that will minimise construction costs.
The process plant design incorporates the following unit process operations:
Page 1.26

Primary REPORT
crushing with a single toggle jaw crusher (1,100 x 700 mm) to produce a
crushed product size of 80% passing (P80) 100 - 120 mm;
 A crushed ore surge bin (30 m3) with a nominal capacity of 1 hour process plant feed of
45 t;
 Single stage SAG mill (5.0 diameter x 3.5 m – 1,200 kW) in closed circuit with cyclones
to produce a P80 grind size of 125 micron;
 Rougher scavenger flotation (6 x 8 m3 conventional cells) to produce a sulphides / gold

concentrate;
 Tower mill (150 kW) for regrind of the concentrate to a P80 grind size of 15 - 20 µm;
 Pre-leach thickener (10.3 m) to minimise carbon in leach (CIL) tankage and reduce
overall reagent consumption;
 A hybrid CIL circuit incorporating one leach tank and six adsorption tanks (430 m 3 each)
with 48 h total residence time;
 A 2 tonne AARL elution circuit with electrowinning and smelting to produce doré bars;
 Cyanide destruction using the SO2 / Air process (120 min retention); and
 Tailings pressure filtration (445 m2 filter area) to 16% moisture content.
The level of instrumentation and control has been selected to provide a basic regulatory control to
maintain steady operation with minimal process excursions. Following industry practice for similar size
plants, a supervisory control and data acquisition (SCADA) and programmable logic controller (PLC)
architecture was selected for the plant wide process control system. It is a reliable and low cost approach.
Raw water for the Project is diverted from the spring source and catchment area of the La Veta creek to a
three day capacity storage pond located east of the plant site. Additionally, seasonal precipitation plus
surplus water from the La Veta creek system is collected in the seepage collection pond, which will be
pumped back to the process water storage tank at the plant. The seepage collection pond will have a
constant overflow to sustain the minimum flow rate requirement for the La Veta creek (7.2 m 3/h). Raw
water is used to feed the potable and stripping water treatment plants as well as reagent mixing, and
gland water.
For a year with an average rainfall the runoff entering the project site will be on average between 22 to 44
m3/h. The estimated plant raw water make-up requirement will be approximately 14 m3/h. The
underground mining operation is assumed self-sustainable from recycled underground inflows.
Page 1.27
1.9
AMENDEDProject
NI 43-101Infrastructure
TECHNICAL REPORT
The Santa Rosa Gold Project consists of an underground decline accessed mine, processing plant, and
plant infrastructure. As part of this Feasibility Study, a site plan was developed for the project site. Major
plant infrastructure consists of the following:
 Main access road from the concession gate to portal pad;
 44 kV power transmission line from EPM substation (8.9 km long);
 44 kV switch yard;
 Main switch room;
 Reagents switch room;
 Mine services and filter plant switch room;
 DWMF;
 Sedimentation pond;
 Seepage pond;
 Monitoring pond;
 Event pond;
 Reagent storage building;
 Plant administration building;
 Assay and metallurgical laboratory;
 Plant workshop and main warehouse building; and
 Mine truck shop/ warehouse buildings.
The proposed process plant site is bounded by the underground mining area to the south, the La Veta
creek valley to the east, and the ridge line separating the San Francisco valley from the La Veta creek
valley to the north and west. The topographic relief in the project area is moderate with gentle to relatively
steep-sided valleys and hills. Elevations range between 2,300 m and 2,500 m above sea level.
The following factors were considered when developing the site plan layout:
Page 1.28

Minimizing REPORT
the environmental impact and visibility;
 Reduced haul truck travel distance from the mine portal area to the run of mine (ROM)
pad / primary crusher;
 Usage of existing access roads;
 Equalizing cut and fill material to avoid fill import or excessive cut to waste;
 Ensuring all heavy equipment foundations are supported on native undisturbed soil with
sufficient load bearing capacity;
 Optimized ore flow through the process plant;
 Compact plant layout to reduce overall footprint, which minimizes electrical cabling,
piping and service roads thus reducing capital costs; and
 Locating the filter presses as close as possible to the mine portal and the DWMF.
The major building structures will be made of structural steel with uninsulated roof and wall cladding. The
building foundations will consist of cast in-situ conventional reinforced concrete footings. Secondary
buildings will be of pre-engineered, pre-fabricated, or portable module type, where applicable. The
ancillary buildings will require varying degrees of air conditioning and ventilation. The process plant facility
will be entirely outdoors, and only the main control room, the electrical switch rooms, and the laboratory
building will be air conditioned. The gold room will be totally enclosed and ventilated. Fire protection,
lightning protection and smoke detection have been considered for various buildings.
The Santa Rosa Gold Project process plant will be supplied by a 44 kV overhead power line coming from
an existing EPM substation located approximately 9 km south of the plant site at Rio Grande. Figure 18.3
shows the EPM power substation and plant site with the proposed route for the new 44 kV power line.
The overhead power line and associated infrastructure will have sufficient capacity for the planned
expansion (10 MW).
The stepped down 4.16 kV power will be distributed to the plant switch rooms (load centres) using 5 kV
cables installed as a combination of cable trays and direct buried. The main switch room will supply power
for equipment located in the milling, feed preparation, and flotation areas. The reagents switch room will
supply power to leaching, desorption, goldroom, and reagents areas. The plant administration building and
the plant workshop and main warehouse will be fed from separate 4.16 kV lines and their dedicated 4,160
/ 480 V transformers.
Page 1.29
A 4.16 kV NI
AMENDED direct TECHNICAL
buried
43-101 cable willREPORT
supply power to the 4.16 kV mine services switchgear, which will feed
the mine area operation, ventilation fans, and the filter plant switch room. The mine area operation and
ventilation fans will be fed via underground 4.16 kV lines. Each line will be protected by a 4.16 kV feeder
breaker. The step down transformers and their protection at the destination will be supplied by the mining
contractor and ventilation supplier. A dedicated feeder breaker will supply power via an oil filled outdoor
4,160 / 480 V, 500 kVA transformer to the filter plant switch room.
Colombia is serviced directly, or through trans-shipment, by ample carriers of all modes, and it has the
supporting infrastructure to receive major project cargo from offshore. Highway No. 25 from Medellin
through Santa Rosa de Osos is a major transport route to Caribbean ports.
The Santa Rosa Gold Project involves the delivery of major equipment from various parts of the world,
including Asia, North America and Europe. For this project, marine and truck transportation services will
be utilized, individually or in combination. Off-site laydown areas, marshalling areas and project
warehousing have been identified in the Medellin and Santa Rosa de Osos areas.
There is adequate road access to the site from the ports of Barranquilla and Buenaventura.
1.10 Capital Cost Estimate
1.10.1 Overall Capital Costs
The capital cost estimate includes all the direct and indirect costs and appropriate project estimating
contingencies for all the facilities required to bring the Santa Rosa Gold Project into production, as defined
by this Feasibility Study.
Mine capital has been minimized by employing a mining contractor for all mining activity. The largest
portion of the capital cost estimate is attributed to development costs, which have been based on
contractor quotations. Ventilation equipment quotations have been received from vendors. Other minor
equipment capital costs have been assumed based on InfoMine estimation guides.
In the process plant capital, all equipment and material are assumed to be new. The labour rate build up is
based on the statutory laws governing benefits to workers in effect in Colombia at the time of the estimate.
Colombian import tariffs have been applied. The estimate does not include any allowances for escalation,
exchange rate fluctuations or project risks. The capital cost estimate has a predicted accuracy of +/- 15%.
The total estimated cost of the overall project (mine plus process plant) is $ 69.90 million. This total has
been compiled as shown in Table 1.6.
Page 1.30
Table
AMENDED NI 1.6TECHNICAL
43-101 REPORT
Santa Rosa Gold Project Overall Capital Cost Estimate ($M)
Installation Cost
Main Area Supply Cost Total Cost
+Freight & Taxes
Construction Indirects 2.12 0.79 2.91
Treatment Plant 15.51 8.68 24.19
Reagents & Plant Services 3.22 1.56 4.78
Infrastructure 2.07 0.64 2.71
Mining 9.64 0.04 9.68
Construction Management Costs 5.70 0.41 6.11
Owner’s Costs 8.50 0.00 8.50
Working Capital 4.02 0.00 4.02
Subtotal 62.90
Contingencies 7.00
Grand Total 69.90
1.10.2 Mine Capital Costs
Mining capital has been minimized by employing a mining contractor for all mining activity. The mining
contractor will be required to provide the mining equipment, and the cost of the equipment will be
amortized into the mining cost. Mining capital includes development capital, pre-production mining costs,
and other mine capital that is comprised of portal collar work, contractor mobilization, and mine surface
facilities.
Most of the equipment and supplies that supports the mine will be purchased and installed by the
contractor with reimbursement by Red Eagle Mining. The exception is some equipment that Red Eagle
Mining will purchase from other vendors. This includes primary and auxiliary ventilation fans, dewatering
pumps, compressors, substation, and electrical switching gear.
The total capital is shown in Table 1.7. Pre-production capital and pre-production expensed costs are
included in the initial capital. Total initial mine capital is $9.44 million, which includes pre-production costs
of ore mined and stockpiled prior to the start of production. Mining costs that are normally expensed are
included in the initial mine capital and include development cost for mining attack ramps to stoping areas
during the pre-production period along with delineation drilling. Development metres have a contingency
of 10% applied to the design to allow for unaccounted for (miscellaneous) development.
Table 1.7 shows the mining capital costs.
Page 1.31
Table 1.7 Total Mine Capital ($M)

Item Yr -1 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Total
Mine Capital Summary
Mine Development 3.50 5.26 5.98 1.70 3.75 4.42 2.33 2.59 3.90 33.45
Initial Delineation Drilling 0.43 0 0 0 0 0 0 0 0 0.43
Pre-Production 2.97 0 0 0 0 0 0 0 0 2.96
Contractor Capital 0.78 0 0 0 0 0 0 0 0.02 0.80
Departmental Capital 1.77 1.21 0.34 0.22 0.53 0.34 0.24 0.04 0.01 4.68
Total Mining Capital 9.44 6.47 6.32 1.92 4.28 4.76 2.57 2.63 3.93 42.32
Total Mining Capital
Initial Capital 9.44 0 0 0 0 0 0 0 0 9.44
Sustaining Capital 0 6.47 6.32 1.92 4.28 4.76 2.57 2.63 3.93 32.88
Total Capital 9.44 6.47 6.32 1.92 4.28 4.76 2.57 2.63 3.93 42.32
Page 1.32
AMENDEDPlant
1.10.3 and TECHNICAL
NI 43-101 REPORT
Site Infrastructure Capital Costs
Major plant and site infrastructure included in the capital costs consists of the following:
 Process plant;
 44 kV power line and switch yard;
 Access road;
 Ponds;
 Ancillary buildings; and
 DWMF.
The total estimated cost of the process plant is $59.25 million as shown in Table 1.8. This total excludes
the initial mining capital investment of $9.44 million.
Table 1.8 Process Plant Estimated Total Installed Costs ($M)
Installation Cost +
Freight and Taxes
Owner’s Costs 8.50 0.00 8.50
Subtotal 53.22
Contingencies 6.03
Grand Total 59.25
Contingency is an integral part of an estimate and has been applied to all parts of the estimate, direct
costs, indirect costs, owners’ costs, etc. The average contingency for the process plant capital costs is
11.2%.
Page 1.33
1.11
AMENDEDOperating Cost Estimate
NI 43-101 TECHNICAL REPORT
1.11.1 Mine Operating Costs
Mine operating costs have been estimated based on first principle operating parameters and costing
parameters using hourly equipment and personnel rates provided by contractor quotations. Note that
operating costs estimated during pre-production have been included in the capital costs, but have been
estimated in the same manner. Mine operating costs are shown in Table 1.9.
Electrical and fuel consumption rates were determined using InfoMine estimation guides. Owner operated
equipment cost estimates included ventilation and dewatering costs, which were estimated using hourly
rates from InfoMine. Electrical and fuel costs have been assumed to be $0.11/kWH and $1.10/L,
respectively. This is based on Red Eagle Mining’s input and research.
The overall average mine operating cost is estimated to be $37.36 per tonne, or $265.61 per ounce of
gold produced.
The accuracy of the mine operating cost estimate is expected to be within ± 15%.
Page 1.34
Table 1.9 Mine Operating Cost

Mine Production Costs Units Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Total
Drilling K USD 960 962 962 962 965 962 962 609 7,346
Blasting K USD 1,615 1,619 1,619 1,619 1,623 1,619 1,619 1,038 12,369
LHD Haulage to Muck Bays K USD 788 813 835 783 782 745 715 453 5,915
LHD Loading K USD 170 170 170 170 171 170 170 141 1,332
Haulage to Surface K USD 673 915 977 893 890 877 1,028 938 7,192
Ground Support K USD 1,196 1,199 1,199 1,199 1,202 1,199 1,199 759 9,153
Backfill K USD 796 914 930 909 898 924 889 685 6,945
Expensed Development K USD 1,636 418 4,703 2,851 1,915 1,257 1,064 2,065 15,908
Mine Support Services K USD 358 357 357 357 358 357 357 298 2,801
Delineation Drilling Sampling K USD 1,483 992 726 727 726 726 726 309 6,414
Ventilation K USD 579 527 533 526 528 525 518 402 4,138
Dewatering K USD 80 86 85 104 104 104 102 59 725
Mine General Services K USD 982 982 982 982 982 982 982 818 7,688
Subtotal Mine Cost K USD 11,318 9,953 14,078 12,082 11,144 10,448 10,331 8,573 87,927
Contractor Fixed Cost K USD 1,931 1,931 1,931 1,931 1,931 1,931 1,931 1,609 15,128
Total Mine Cost K USD 13,249 11,884 16,010 14,013 13,075 12,379 12,263 10,182 103,055
Total Mine Cost $/t 36.70 33.01 44.47 38.93 36.22 34.39 34.06 43.94 37.36
Page 1.35
AMENDEDPlant
1.11.2 TECHNICAL
Operating
NI 43-101 Costs REPORT
The operating cost estimate includes five major categories as defined below:
 Process plant labour;
 Operating consumables;
 Power;
 Maintenance; and
 General and administration.
Operating costs have been developed using the plant parameters specified in the process design criteria.
The operating cost estimate includes all the cost items relevant to processing the ore by crushing and
grinding, flotation, CIL, electrowinning and smelting to produce gold doré. The operating costs listed by
major category are presented in Table 1.10.
The process plant operating cost was determined to be $24.11 per tonne of ore processed or $171.48 per
ounce of gold produced. With inclusion of G&A costs of $9.68 per tonne, the total annual operating cost is
$33.80 per tonne of ore processed or $240.35 per ounce of gold produced.
Table 1.10 Summary of Process Operating Cost Estimate at nominal duty of 360,000 tpa
Total Cost Distribution

Cost Category
$/y $/t ore $/oz Au %
Process Plant
Process Plant Labour 2,122,822 5.90 41.94 17%
Operating Consumables 2,958,244 8.22 58.44 24%
Power 2,654,988 7.37 52.45 22%
Maintenance 944,027 2.62 18.65 8%
Subtotal - Process Plant 8,680,082 24.11 171.48 71%
General & Administration 3,486,559 9.68 68.88 29%
Total 12,166,641 33.80 240.35 100%
1.12 Economic Analysis
An economic analysis was developed for the Santa Rosa Gold Project using the production schedule
along with capital and operating costs as described in Section 21. The analysis uses fully diluted Proven
and Probable reserves. The generated cash-flow model was carried out on a pre-tax and post-tax basis.
Page 1.36
Net gross NI
AMENDED 43-101 TECHNICAL
revenues REPORT
were estimated using a $1,300 per ounce gold price with revenue deductions for
royalties, refining, transportation and insurance costs. Cash cost calculations use the total operating cost
plus royalties divided by the payable gold ounces. Total costs are calculated using the total costs
(operating and capital) plus royalties and taxes divided by the payable gold ounces.
The cash-flow model calculates the Net Present Value (NPV) based on a discounted rate of 0%
(undiscounted), 5% and 8%. The base case considers the NPV at 5%. The Internal Rate of Return (IRR)
on total investment and the payback period were also calculated.
A sensitivity analysis was also conducted on parameters that are deemed to have the biggest impact on
the Project financial performance (capital cost, operating cost and gold selling price). The financial results
are summarised in Table 1.11.
Table 1.11 Financial Performance Indicators
Item Units Pre-Tax Post-Tax

NPV @ 0% K USD 171,763 131,501
NPV @ 5% K USD 136,895 103,678
NPV @ 8% K USD 119,921 90,027
IRR % 64.4% 52.6%
Payback Years 1.3 1.3
Cash Costs US$/t ore 83.78
Total Costs US$/t ore 94.24 107.27
Cash Costs US$/oz Au 596.12
Total Costs US$/oz Au 670.56 763.30
1.13 Conclusions and Recommendations
1.13.1 Geology and Mineral Resource
The Santa Rosa Gold Project is located within the Cajamarca-Valdivia terrane that includes a
metamorphic basement complex and the Antioquia batholith. Typically, structures within the Antioquia
batholith trend northwest-southeast. These structures are interpreted to be the cause of the formation of
San Ramon deposit shear zone which, under dilation has received quartz, precious metals and sulphide
mineralisation. Although mineralisation in the shear zone is pervasive, there are distinct high grade
domains that can be followed consistently along the known east-west strike length of the deposit.
The current resource estimate on which this Feasibility Study is based was reported in August 2013 but is
now reported at a different cut-off grade 1.2 g Au/t. The change in reporting cut-off was appropriate
because the mining scenario has been determined to be by underground methods. The current resource
estimate also includes a small addition on land not formerly controlled by Red Eagle Mining.
Page 1.37
The following
AMENDED TECHNICALhave
recommendations
NI 43-101 REPORT
been proposed:
 Further exploration drilling is required to test the current Inferred resource, and to test
the expansion of the deposit with depth and plunge to the east; and
 Detailed delineation drilling will be necessary for ore zone definition and stope design
prior to mining. The delineation drill pattern should be a closely spaced as practically
possible, and initially, no greater than a 10 m by 10 m pattern.
1.13.2 Mining and Mineral Reserves
Mineral reserves were developed using the resource modelled high-grade domains along with undiluted
grade estimates. The high-grade domains were used as a basis for stope designs. Measured and
Indicated resources above and below the economic cut-off grades (oxide 1.96 g Au/t, transition 2.14 g
Au/t, and sulfide 2.00 g Au/t) were determined for the stope solids. Initial stope designs were created with
a 2.0 m minimum width, but then expanded to include a 2.5 m width to account for external wall dilution or
selvedge. Dilution with Measured and Indicated material was added at modelled grades; waste and
Inferred dilution material was added at zero grade. The average minimum width is 3 meters.
A mining method was developed that was considered suitable to the geometry of the stope solids, and the
geotechnical characteristics of the shear zone containing the high grade domains. The method developed
was Mechanized Shrinkage with Delayed Fill (MSDF). This method has the advantages of:
 dilution and ore loss during mucking are greatly reduced;
 the powder factor required is reduced in comparison to the similar method of cut-and-fill
mining;
 leaving mined ore in the stope maintains wall stability until the ore is mucked out;
 underground stockpiles of ore will be available that can be delivered as required to the
mill; and
 easy to convert to cut-and-fill techniques where ground conditions become weak.
Life of mine production schedules were created based on required development and the designed stopes.
The schedules were done on a monthly basis and include productivity from contractor quotations. These
schedules were used for first principle cost evaluation and economic analysis.
Reserves have been classified in order of increasing confidence into Proven and Probable categories to
be in compliance with the “CIM Definition Standards - For Mineral Resources and Mineral Reserves”
(2014) and therefore Canadian National Instrument 43-101.
Page 1.38
The following
AMENDED TECHNICALare
recommendations
NI 43-101 REPORT
proposed:
 Maximum support design for the decline portal and the upper section of the decline in
saprolite and schist is recommended. The decline is the only access into the deposit and
must remain stable for the life of the mine. Special support attention may also be
necessary when advancing from the schistose rock through to granodiorite;
 The Feasibility Study assumes mining contractors will be used to offset mining capital.
Proposals were received as part of the mining study, and several discussions have been
underway with multiple mining contractors. These negotiations need to be completed
with the goal of developing a working partnership with the contractor that will promote
productivity and safety while maintaining costs at a minimum;
 Mining contractors in the area are very experienced in underground construction and
development, but are less experienced in mine production. Red Eagle Mining has
decided to bring in a team of experienced mining experts to help train the contract
miners. To make this strategy successful, these mining experts need to be sourced;
 Management of dilution and ore loss will be the key to the success of the underground
operations. This will require planning and implementation of a delineation program and
the procedures to be used. Red Eagle Mining should determine the procedures and
work flow required to ensure a successful program of delineation for stopes. This
includes how drill planning is done, how drilling results are tracked, establishment of
quality control protocols and procedures, modelling of results, inclusion into detailed
stope designs, and reconciliation of planned and actual mining; and
 Explosives are supplied by the Colombian Government and are long lead orders.
Negotiations with the contractor need to be completed and orders placed to ensure that
explosive products are available when required.
1.13.3 Metallurgical testwork and Recovery Methods
Metallurgical laboratory testwork achieved the desired quality and demonstrated that by using the
designed process flowsheet it is possible to economically recover gold from the San Ramon deposit.
concentrate are leached in a CIL circuit. Cyanide in the CIL tailings will be detoxified using the SO2 / Air
process prior to the tailings being filtered. Part of the filtered tailings will be stacked in a dry waste
management facility; the balance will be used as backfill in the mine. Filtrate will be recycled back to the
process plant to minimise the raw water requirement.
Page 1.39
To compliment
AMENDED TECHNICAL
the results
NI 43-101 of the REPORT
Feasibility Study, additional metallurgical testwork is recommended as
follows:
 Bulk flotation testwork to generate 10 to 20 kg of flotation concentrate using a 100 to

200 kg sample. It is recommended that the sample is extracted from the existing Hilo
Azul underground cross cut, which intersects the full width of the shear zone in
sulphides;
 Regrind testwork should be undertaken by the selected equipment vendor using the
flotation concentrate. This testwork will confirm the size of the regrind equipment, refine
the operating cost estimate and will facilitate process guarantees upon purchase of the
equipment;
 The bulk flotation tail and reground product should be collected after testing. The
samples should be sent for vendor thickening and filtration testwork to facilitate process
guarantees upon purchase of the equipment;
 Given the lower cyanide consumption and lower final cyanide concentration in the coast
down tests, further testing is recommended to optimize the cyanide concentration and
dosage schedule during the leach step; and
 A single test with separate leaching of the reground concentrate and flotation tails
increased gold recovery by more than 1% over the combined leach. Therefore it is
recommended that the test be repeated to confirm the improved recovery. If this is
confirmed, then a value added exercise should be undertaken to determine if the
separate leach approach offers a significant improvement in the process.
In addition to metallurgical testwork the following modelling and value engineering assessments are
recommended:
 Value engineering assessment of the inclusion of a tail thickener to recover cyanide

should be undertaken. The current design minimises capital rather than operating cost;
and
 Given the closed circuit nature of the flowsheet it is recommended that a more detailed
mass and chemical modelling of the circuit be undertaken including both the plant and
site water system to better define the chemistry of circulating loads and the final effluent.
1.13.4 Project Infrastructure
Site infrastructure facilities in support of the mining and processing of the San Ramon deposit have been
developed to take into consideration the local topographic features, water courses and access. The level
of the detail and planning is commensurate with that normally associated with Feasibility Study level.
Page 1.40
There is adequate
AMENDED TECHNICAL
NI 43-101space REPORTfacilities and there are no known adverse conditions that could
for the intended
affect the design and construction of the required project infrastructure. The layouts of equipment and
building sizes including auxiliary buildings, maintenance facilities, and power supply infrastructure will be
compatible with other similar size projects.
The current level of infrastructure design incorporates all necessary facilities to protect the environment
including water treatment, sewage disposal, surface water catchment, retention ponds and recirculation
systems.
Due to the reduction in the project site footprint and process plant relocation late in the Feasibility Study,
an extension to the completed geotechnical program needs to be undertaken for the equipment and
building foundations in the current location of the plant site to supplement the drilling done as part of this
Feasibility Study. The program must be completed prior to the start of detailed engineering.
1.13.5 Environmental Studies, Permitting, and Social and Community Impact
Red Eagle Mining needs to obtain the necessary Environmental License in order to start construction
activities at the Project site. The social program of information and workshops that have been running for
over two years should continue through the duration of operations. The corporate policy of Red Eagle
Mining is to remain transparent to all communities and stakeholders in the region.
Red Eagle Mining has a number of sustainable programs planned that will positively develop the social
environment. This will be achieved by the existing commitment to maximize the recruitment of local
personnel during both construction and operations. It is estimated that at least 150 people will benefit from
direct employment and at least another 500 will benefit indirectly. Local suppliers of goods and support
services to the mine will be able to develop their businesses through increased opportunities. Education
and training programs will raise the skills level of the workers in the area. Culturally the local communities
are willing to accept change and have a high potential and desire to improve and benefit themselves.
The project footprint lies within an area owned by a single landowner and therefore there is limited effect
on land or property tenure.
There are no impacts related to displacement of the local population and any impacts on their way of life
are minimal and management plans are in place to mitigate these. The remote location of the project in
relation to the local communities and population assists in minimizing any potential impacts.
1.13.6 Main Conclusion
The Feasibility Study for the Santa Rosa Gold Project has been completed in sufficient detail to refine the
economics to a +/-15% level of accuracy and outline the issues facing the project going forward. The
Project economics are sufficiently robust to warrant moving to the next phase of detailed engineering and
construction. The estimated cost for the entire mine development and process plant and infrastructure
construction up to, and including start-up and commissioning is $69.90 million (excluding VAT to be paid,
but reclaimed in the first year of production).
Page 1.41

2.0 INTRODUCTION
2.1 General
The following Technical Report was compiled by Lycopodium Minerals Canada Ltd. (Lycopodium) and
presents the results of the Feasibility Study for the Santa Rosa Gold Project in the Department of
Antioquia, northern Colombia. The Technical Report was prepared at the request of Red Eagle Mining
Corporation (Red Eagle Mining), a British Columbia corporation. Red Eagle Mining is listed on the TSX
Venture exchange (RD) and the OTCQX (RDEMF).
The purpose of this Technical Report is to support the public disclosure of a Feasibility Study for the Santa
Rosa Gold Project. The resource estimate, on which this Feasibility Study is based, was previously
described in a Technical Report by Mine Development Associates (Lindholm and Schlitt, 2013b). This
Technical Report, the resource and reserve estimate, and the Feasibility Study have been prepared in
compliance with the disclosure and reporting requirements set forth in the Canadian Securities
Administrators’ National Instrument 43-101 (“NI43-101”), Companion Policy 43-101CP, and Form
43-101F1, as well as with the Canadian Institute of Mining, Metallurgy and Petroleum’s “CIM Definition
Standards - For Mineral Resources and Reserves, Definitions and Guidelines” (“CIM Standards”) adopted
by the CIM Council on May 10, 2014.
This Feasibility Study was completed by:
 Lycopodium Minerals Canada Ltd. (“Lycopodium”) for the process design, plant
infrastructure, Capital and Operating cost estimates, and Economic analysis;
 Mine Development Associates (“MDA”) for mining and geology;
 Hydrometal Inc. (Hydrometal”) for metallurgical testwork management, largely

undertaken at McClelland Laboratory Services;
 Golder Associates South America Ltd. (“Golder”) for the design of the dry waste
management facility, and geotechnical and hydrogeological aspects of the project; and
Unless otherwise denoted, all costs referred to in this Feasibility Study are quoted in current 3Q United
States dollars.
The effective date of the mineral resource estimate is August 5, 2013. The effective date of the Feasibility
Study is October 6, 2014. The effective date of this report is October 6, 2014.
Page 2.1
2.2
AMENDEDSources of Information
Lycopodium has based its interpretation on the data and information provided by Red Eagle Mining for the
completion of this report including prior Technical Reports by MDA. Sections 6, 7 and 9 are based on
information provided by Red Eagle Mining, including the Technical Report by Jemielita (2011b).
Observations by MDA are also included in Section 7. Section 8 was condensed from Jemielita (2001b)
and includes additional information provided by Red Eagle Mining. The information provided by Red Eagle
Mining and other references are listed in Section 27.0 'References'.
2.3 Qualified Persons
The following Qualified Persons (QP), as the term is defined by NI43-101, have contributed to the writing
of this Report and have provided the requisite QP certificates included at the end of this Technical Report.
The information contained in the certificates pertains to each section of this Technical Report that the
designated QP is responsible for.
Mr. Stefan Gueorguiev P. Eng. Lycopodium Minerals Canada Ltd
Mr Gueorguiev is the Manager of Projects at Lycopodium, and is the QP responsible for matters relating to
the process plant and infrastructure sections of the report together with the sections related to capital and
operating costs and the economic analysis as well as the general sections of the document. Mr
Gueorguiev was also responsible for the coordination, consolidation and review of Sections 1, 2, 3, 4, 5,
19, 23, 24, 25, 26 and 27.
Mr. Stefan Gueorguiev is also the QP responsible for Section 20 of the Report and in his supervision of
the preparation of that section relied entirely on the Environmental Impact Study dated February 20, 2014
provided to the Issuer and prepared by Alejandra Maz Courrau, of the firm Tetra Tech Colombia S.A.S.
Mr. Thomas L. Dyer P. E. Mine Development Associates
Mr. Thomas L. Dyer, P.E., is a Senior Engineer with MDA and is the QP for mineral reserves, mining
methods, and the mining portion of capital and operating costs sections of this report.
Mr. Michael Lindholm C.P.G. Mine Development Associates
Mr, Lindholm is a Senior Geologist at MDA and is the QP responsible for matters related to geology and
resources. This includes history, geological setting and mineralization, deposit types, exploration, drilling,
sample preparation, analyses and security, data verification, and mineral resource estimates
Mr. W. Joseph Schlitt Ph.D., P. Eng Hydrometal Inc.
Mr. Schlitt is the President of Hydrometal and is the QP responsible for the mineral processing and
metallurgical testing sections of this report.
Page 2.2
Mr. NI 43-101 TECHNICAL

Terry Eldridge
AMENDED REPORT
P.Eng Golder Associates South America Ltd.
Mr Eldridge is the South America mine waste management leader of Golder Associates and is the QP
responsible for matters relating to the dry waste management facility section of the report.
Table 2.1 outlines responsibility for the various sections of the Report.
Page 2.3
Table 2.1 Technical Report Section List of Responsibility

Section Other
Section Title Responsible QP Co-author
Number Experts
1 Summary Lycopodium (Stefan Gueorguiev)/ MDA (Thomas L. Dyer, Michael Lindholm)/ Joe Schlitt
/ Golder (Terry Eldridge) REM
2 Introduction Lycopodium (Stefan Gueorguiev)
3 Reliance on Other experts Lycopodium (Stefan Gueorguiev)
4 Property Description and location Lycopodium (Stefan Gueorguiev) REM REM
5 Accessibility, Climate, Local Resources, Infr. and Physiography Lycopodium (Stefan Gueorguiev) REM, Golder REM
6 History MDA (Michael Lindholm) REM
7 Geological Setting and Mineralization MDA (Michael Lindholm) REM
8 Deposit Types MDA (Michael Lindholm) REM
9 Exploration MDA (Michael Lindholm) REM
10 Drilling MDA (Michael Lindholm) REM
11 Sample Preparation, Analyses and Security MDA (Michael Lindholm) REM
12 Data Verification MDA (Michael Lindholm)
13 Mineral Processing and Metallurgical Testing Hydrometal Inc. (Joe Schlitt) REM
14 Mineral Resource Estimates MDA (Michael Lindholm) REM
15 Mineral Reserve Estimates MDA ( Thomas L. Dyer )
16 Mining Methods MDA ( Thomas L. Dyer )
17 Recovery Methods Lycopodium (Stefan Gueorguiev)
18 Project Infrastructure Lycopodium (Stefan Gueorguiev)/ Golder (Terry Eldridge) REM
19 Market Studies and Contracts Lycopodium (Stefan Gueorguiev) REM
20 Environmental Studies, Permits and Social or Community Impact Lycopodium (Stefan Gueorguiev) REM
21 Capital and Operating Costs Lycopodium (Stefan Gueorguiev)/ MDA ( Thomas L. Dyer )/ Golder (Terry Eldridge REM
22 Economic Analysis Lycopodium (Stefan Gueorguiev) REM
23 Adjacent Properties Lycopodium (Stefan Gueorguiev) REM
24 Other Relevant Data and Information Lycopodium (Stefan Gueorguiev)
Lycopodium (Stefan Gueorguiev)/ MDA ( Thomas L. Dyer; Michael
25 Interpretation and Conclusions
Lindholm)/Hydrometal Inc. (Joe Schlitt)/ Golder (Terry Eldridge) REM
Page 2.4
Section Other
Section Title Responsible QP Co-author
Number Experts
Lycopodium (Stefan Gueorguiev)/ MDA ( Thomas L. Dyer ; Michael Lindholm)/
26 Recommendations
Hydrometal Inc. (Joe Schlitt)/ Golder (Terry Eldridge) REM
Lycopodium (Stefan Gueorguiev)/ MDA ( Thomas L. Dyer ; Michael Lindholm)/
27 References
Hydrometal Inc. (Joe Schlitt)/ Golder (Terry Eldridge) REM
Page 2.5
2.4
AMENDEDSite Visits
Mr. Dyer and Mr. Lindholm made a site visit to the Santa Rosa project on September 25 through 29, 2012.
MDA reviewed current drill programs, drilling/logging/sampling procedures, pertinent geology, and data
availability. In addition, MDA reviewed drill core from San Ramon, collected independent confirmation
samples of core and coarse rejects, spot-checked collar locations, and visited potential mining facility
locations.
Mr. Dyer made a second visit to the site along with Mr. Schlitt and Mr. Eldridge from February 19 to 22,
2013, touring potential infrastructure locations, viewing core, and discussing development strategies. In
addition, on several occasions Mr. Schlitt has visited all the metallurgical laboratories that performed a
significant amount of testwork on samples from San Ramon deposit.
Mr. Lindholm made a second site visit to the project on May 14 through 17, 2013, during which he
examined high-grade intercepts in core, spot-checked new collar locations, and gathered the newest
drilling data.
Mr. Gueorguiev visited the Santa Rosa Project site on February 19, 2014. The primary objective of the site
visit was to verify the site conditions, existing infrastructure, and utilities in the area surrounding the mine
site.
Page 2.6
3.0 REPORT
AMENDED NI 43-101 TECHNICAL RELIANCE ON OTHER EXPERTS
The authors are not experts in legal matters, such as the assessment of the legal validity of mining
concessions, private lands, mineral rights, and property agreements. The authors did not conduct any
investigations of the environmental or social-economic issues associated with the Santa Rosa Gold
Project, and the authors are not experts with respect to these issues.
The authors rely on information provided by Red Eagle Mining as to the legal status of Red Eagle Mining
and related companies, as well as surface rights comprising the Santa Rosa Gold Project, material terms
of all property agreements, and the existence of applicable royalty obligations. Lycopodium has relied on
Red Eagle Mining and their independent Colombian legal counsel, Lloreda Camacho & Co, for current
legal title of the concessions. Section 4 is based on information provided by Red Eagle Mining and
Lloreda Camacho & Co, and the authors offer no professional opinions regarding the provided information.
Lycopodium has relied on Red Eagle Mining and their financial staff and advisors to determine appropriate
tax implications in the financial analysis for this Technical Report. Lycopodium is not an expert on
Colombian tax issues.
The Environmental Impact Assessment (EIA), which has been summarised in this Feasibility Study
(Section 20) was prepared by Tetra Tech, along with the full support of the Universidad de Antioquia
(University of Antioquia) and Fundación Universitaria Católica del Norte (Foundation Catholic University of
the North) in compliance with requirements and specifications provided by the Environmental Authority.
Page 3.1
4.0 PROPERTY
AMENDED NI 43-101 TECHNICAL REPORT DESCRIPTION AND LOCATION
4.1 Property Location
The Santa Rosa Gold Project is located approximately 20 km southeast of the town of Santa Rosa de
Osos, in the municipality of the same name, in the Department of Antioquia, 73 km northeast of the
department capital Medellín in northern Colombia (Figure 4.1). The centre of the resource is located at
approximately latitude 6° 36' 57 N and longitude 75° 22' 20 W. The San Ramon deposit lies in the south
eastern part of concession B7560005 held by Red Eagle Mining and described in more detail in
Section 4.3.
Figure 4.1 Location of the Santa Rosa Project

Site
4.2 Colombian Mining Law Regarding Concession Contracts
The following information is provided by Red Eagle Mining; Lycopodium has no expertise in Colombian
law and has not confirmed this information.
Page 4.1

All mineralNIresources REPORT
belong to the state and can be explored and exploited by means of concession
contracts granted by the state. Under Colombian mining law, a concession contract consists of
exploration, construction, and exploitation terms. Once the contract is registered, the exploration term is
three years, renewable for an additional eight years in increments of two years. The concession contract
is then convertible to the construction term, which is two years, renewable for an additional year. Finally
the concession contract is convertible to an exploitation term upon the granting of an Environmental
Licence by the Environmental Authority.
The total term for the concession contract (exploration and exploitation) is 30 years renewable for a further
30 years, unless the concession contract was signed under Law 1382 of 2010, in which case the
concession contract is renewable for a further 20 years.
Producing mines are subject to a federal royalty of 4% of the gross value of gold and silver production at
80% of the current London gold price which is in effect 3.2% (under a modification of mining law 685 of
2001).
Legal surveys are conducted to define the coordinates of the concession by the Secretaria de Minas de
Antioquia (Secreminas, or mines department) prior to granting the concession contract.
4.3 Land Area
The Santa Rosa Gold Project comprises a total area of approximately 33,000 hectares and consists of 12
concession contracts and 14 concession applications for which the technical studies have been approved.
Red Eagle Mining holds a 100% interest in the properties comprising the Santa Rosa Gold Project, subject
to completion of property payments described in Sections 4.4.1, 4.4.2, 4.4.3 and 4.4.4, and 4.4.5 to royalty
obligations described in Section 4.4.6. Figure 4.3 shows the concessions in the immediate vicinity of the
San Ramon deposit, located in the south eastern part of concession B7560005, which is the focus of this
Technical Report.
The annual holding costs for the concessions are approximately $12 per hectare.
Red Eagle Mining does not currently control any surface rights on the San Ramon deposit, which are held
by a single land owner. Red Eagle Mining has paid a monthly fee for surface access to the surface land
rights owner while conducting exploration activities during the past (almost) 4 years. A preliminary
footprint for potential mining operations has been determined and discussions with the surface rights
owner to extend the lease for the life of the mine are nearing conclusion.
Page 4.2
Table
NI4.1 REPORT
Legal Status of Red Eagle Mining’s Mining Concession Contracts and
Applications
LEGAL STATUS OF MINING CONCESSION CONTRACTS AND APPLICATIONS
Concession Technical Area Currently Remaining

ID Proposal Holder Contract Extension
Contract Study (ha) Lapsed Time
1 H5790005 X 270 REMDC 30 Years 10 Years 20 Years 30 Years
2 H5791005 X 220 REMDC 30 Years 9 Years 21 Years 30 Years
3 B7560005* X 500 REMDC 30 Years 2 Years 28 Years 30 Years
4 B7171005 X 498 REMDC 30 Years 1 Year 29 Years 30 Years
5 LDM-08061 X 1,630 Perez
6 LKA-08004 X 52 Perez
7 OG2-081816 X 1,809 REMDC
8 OG2-08229 X 121 REMDC
9 JC3-08091 X 4 Grupo de Bullet 30 Years 2 Years 28 Years 30 Years
10 ICQ-0800643X X 164 Grupo de Bullet 30 Years 3 Months 30 Years 20 Years
11 JC3-08092X X 8 Grupo de Bullet 30 Years 1 Year 29 Years 30 Years

12 JI8-08071 X 6,113 Grupo de Bullet 30 Years 5 Months 30 Years 20 Years
13 JIT-08461 X 8,590 Grupo de Bullet 30 Years 1 Year 29 Years 20 Years
14 KGM-14151 X 3,962 Grupo de Bullet
15 KGM-14153X X 15 Grupo de Bullet
16 KGM-14152X X 506 Grupo de Bullet
17 KGM-14241 X 1,796 Grupo de Bullet
18 KGM-14242X X 4,969 Grupo de Bullet
19 KIG-11151 X 10 Grupo de Bullet
20 LIN-11551 X 366 Grupo de Bullet
AngloGold
21 7590B X 352 30 Years 3 Years 27 Years 30 Years
Ashanti
AngloGold
22 7591 X 281 30 Years 1 Year 29 Years 30 Years
Ashanti
AngloGold
23 7723B X 40 30 Years 4 Years 26 Years 30 Years
Ashanti
AngloGold
24 7591B X 224
Ashanti
AngloGold
25 7723 X 693
Ashanti
AngloGold
26 HBS-10501X X 30
Ashanti
TOTAL PROJECT AREA 33,224
*San Ramon Gold Deposit
Page 4.3
Figure 4.2 Concessions and Applications Forming the Santa Rosa Gold Project
Page 4.4
AMENDED 4.343-101 TECHNICAL

Figure NI REPORT
Concessions and Applications in the Immediate Vicinity of the San Ramon
Deposit
4.4 Agreements and Encumbrances
In 2010 Red Eagle Mining initially acquired four concession contracts and one application that had passed
technical review by the Mining Authority (Secreminas) totalling 3,117.7 hectares. Shortly thereafter, it
acquired an additional application that had passed technical review by Secreminas. These six concession
contracts and applications comprised 3,169.9 hectares.
In October 2012, Red Eagle Mining acquired six concession contracts and eight applications from Bullet
and nine associated companies, totalling 30,097.0 hectares. Bullet has first rights to any tenements that
Red Eagle Mining should relinquish.
In July, 2013, Red Eagle Mining filed applications for two additional concessions.
Page 4.1
In June, 2014
AMENDED RedTECHNICAL
NI 43-101 Eagle MiningREPORT
acquired three concession contracts and three applications from
AngloGold Ashanti totalling 1,619.8 hectares.
One concession contract and two applications for which technical studies had been approved were
dropped by Red Eagle Mining in September, 2013, reducing the total tenement holding to its current area
of 33,224 hectares.
Red Eagle Mining holds 100% interest in all the tenements subject to completion of outstanding payments
of $1,790,000 to the underlying owners and subject to the royalty payments as described.
The San Ramon deposit and project site are located on concession contract – B7560005.
4.4.1 Purchase Agreement for Five Original Project Concessions
Five of the Santa Rosa Gold Project concessions are held by Red Eagle Mining under a sale and
purchase agreement. This agreement is to acquire 100% of five of the concession contracts: four
concession contracts numbered B7560005, B7171005, H5791005, and H5790005 registered in the name
of Red Eagle Mining, and concession contract application LDM-08061, for which the free area has been
declared that is awaiting transfer of title. The total purchase price was $8.2 million. $600,000 is
outstanding and is due upon title transfer of concession contract LDM-08061. One other concession
contract application (LKA-08004) was acquired under a separate purchase agreement described in
Section 4.4.2.
4.4.2 Purchase Agreement for LKA-08004
Red Eagle Mining can acquire LKA-08004 for a total cost of $180,000. The first payment of $40,000 has
been made. An additional payment of $70,000 is due ten days after the concession contract is registered
in the vendor’s name. The final payment of $70,000 is due ten days after the Secretary of Mines of
Antioquia confirms with a resolution the transfer from the vendor to Red Eagle Mining.
4.4.3 Purchase Agreement with Bullet
In October 2012, Red Eagle Mining entered into a Purchase Agreement with Bullet to purchase 100%
interest in one concession contract (at the time the Purchase Agreement was executed) and the mining
rights to 14 concession contract applications for which the technical study has been approved and free
areas have been declared that are awaiting transfer of title totalling about 30,097 hectares surrounding
Red Eagle Mining’s original concessions. In consideration for the property, Red Eagle Mining issued
905,000 common shares to Bullet and granted Bullet a royalty as discussed in Section 4.4.6 Bullet retains
a right of first refusal to acquire the parcels should Red Eagle Mining decide to let any of the mining rights
lapse.
Page 4.2
4.4.4 NI 43-101 TECHNICAL

AMENDEDPurchase REPORT
Agreement with AngloGold Ashanti Colombia S.A
Red Eagle Mining has entered into a Purchase Agreement with AngloGold Ashanti Colombia S.A.
pursuant to which Red Eagle Mining has agreed to acquire 100% of certain contiguous mineral
exploration rights totalling 1,619.8 hectares within Red Eagle Mining’s Santa Rosa Gold Project. In
consideration for the property, Red Eagle Mining has agreed to pay US$375,000 over two years from title
transfer (of which $25,000 has been paid to date) and grant a 2% net smelter return royalty on the
properties acquired. No other third party royalties exist on the property nor are they captured by existing
royalty arrangements.
This purchase covers a 1 km extension to the San Ramon deposit to the east, where there is potential for
additional mineralisation.
4.4.5 Agreement Regarding Artisanal Mining Operations
An artisanal gold mining operation in a 20 hectare area located within concession title B7560005 was shut
down in 2011 under an agreement between the vendors and Red Eagle Mining. This operation had
consisted of a single shaft into a narrow high-grade gold-bearing vein. Under this agreement, Red Eagle
Mining must pay the vendors $2,000,000 in instalments – US$1,300,000 has been paid, and US$700,000
is due by November 30, 2014. This agreement constitutes an additional part of the Purchase Agreement
for the five original project concessions described in Section 4.4.1.
4.4.6 Royalties
There is a government-imposed 4% royalty on gold and silver that is effectively 3.2% as described in
Section 0.
LMM purchased a 2% net smelter return royalty on the original six concessions of the Santa Rosa Gold
Project in October 2012 for $8,333,333. In December 2013 Red Eagle Mining sold a further 1% royalty to
LMM. Red Eagle Mining has the option to buy back 1% of the royalty for $8,333,333 for a period of two
years from the date of the first gold production. This royalty applies to the concession in which the
resource is located.
Bullet and AngloGold hold non overlapping 1.5% and 2% net smelter returns royalties respectively. These
royalties do not apply to the concession in which the resource is located.
4.5 Environmental Liabilities
There are no known environmental liabilities on the Santa Rosa Gold Project area at this time.
Red Eagle Mining’s activities to date have included exploration and inspections conducted by the
Environmental Authority on a regular basis. No major issues were raised and any minor issues were
remedied immediately to the satisfaction of the Environmental Authority.
Page 4.3
The processes
AMENDED TECHNICAL
required
NI 43-101 REPORTrelated activities, as well as all commitments to date, are shown
for environmental
in Table 4.2.
Table 4.2 Processes Required for Environmental Activities
Process Result
Submit a letter to the Antioquia Environmental Official Terms of reference for the area to be developed – Terms of
Authority (‘CORANTIOQUIA’) requesting Terms Reference were issued and accompanied by a Letter of
of Reference for the EIA Confirmation from the Environmental Authority in July, 2013
A certificate regarding ethnic communities presence/absence in the
Submit a letter to the Ministry of the Interior
area (black or indigenous communities) – Official Letter informing
(‘MININTERIOR’) requesting presence of ethnic
the Company that there were no ethnic communities present in the
communities in the area
tenement areas issued in June, 2012
An official reply about ethnic community property in the area -
Submit a letter to the Institute of Rural
Official Letter informing the Company that there were no ethnic
Development (‘INCODER’)
communities present in the tenement areas issued in June, 2012
An official reply concerning any archaeological research
requirements in the area - Official Letter informing the Company
that the archaeological authorization N° 3425 is granted on May
Submit a letter to the Institute of Anthropology 22, 2013.
and History (‘ICANH’)
Official Letter informing the Company that the final report and the
Archaeological Management Plan have been approved in January,
2014.
Submit a Technical Study (PTO) describing the An official approval of the PTO, which initiates the environmental
technical aspects of the planned mining and approvals process – Submission of the official document in
processing development and operations to the November, 2013, with official approval of the PTO issued by
Secretary of Mines (‘SECREMINAS’) Secreminas in August, 2014.
Preliminary baseline assessment – Work commenced under
Commence Environmental Base Line-EBL contract with Universidad de Antioquia (UdeA), and Fundacion
studies Universitaria Catolica del Norte (FUCN) in early September 2012
and was completed in May 2013.
A final EIA document – Contract to complete the EIA was awarded
Consolidate Environmental Impact Assessment- to Tetra Tech Colombia SAS in early December 2012, and was
EIA completed and submitted to the Environmental Authority in
February, 2014.
An official submission receipt on February 20, 2014 - An official
Submit EIA to Environmental Authority letter informing the Company that the Initial Act for the licensing
process is issued on May 6, 2014
An official Environmental License for the Company allowing it to
Evaluate the final EIA and make resolution of
proceed, without any additional permits, to construction and
approval
operations of the project.
After the Environmental License is issued and appropriate insurance against environmental impact has
been obtained, the concession is automatically authorized to start the construction phase and then is
converted to an exploitation concession; project construction can begin without any additional permitting
requirements.
Page 4.4

5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND
PHYSIOGRAPHY
5.1 Access to Property
The Santa Rosa Gold Project is accessible from the city of Medellín, which has an international airport, via
paved Highway 25 north-northeast through Copacabana and Don Matías for approximately 65km to a
turn-off located 12km south of Santa Rosa de Osos. From the turn-off to the east, it is approximately 8km
to the Red Eagle Mining camp on an unpaved road (Figure 5.1).
Figure 5.1 Access to the Santa Rosa Project
Santa Rosa Project Site
Page 5.1
5.2
AMENDEDClimate
The climate is mildly tropical with daytime temperatures around 24°C. Annual rainfall averages between
2,400 and 3,000 mm and falls mostly during rainy seasons from March to May and September to
December. There are no significant climatic restrictions on working. All activities, including exploration,
mining and Project construction can be conducted year round.
5.3 Physiography
Topographically, the Santa Rosa de Osos district consists of an irregular, dissected peneplain with gentle-
to steep-sided valleys and hills. Elevations range between about 2,300 m and 2,500 m. The region is
largely occupied by grass pasture and arable land with limited and often isolated areas of lush, low-growth
Andean forest, mostly located along drainages. Agriculture within the project area comprises cattle
farming in about 50% of the project area and tamarillo ("tree tomato") cultivation in approximately 10% of
the area, mostly in the southeast. There is also minor commercial forestry (pine). Tropically weathered
latosol profiles are ubiquitous and average 5m to 10m thick in undisturbed areas.
Because the topographic relief in the project area is moderate and the entire project is covered by
vegetation, surface exposures are limited to road cuts, cuts for drill-pad locations, and sluice areas, or
baticiones, denuded by historic hydraulic mining (see Figure 7.4).
The San Ramon deposit is located at an elevation of 2,453 m above sea level.
5.4 Infrastructure and Local Resources
The project area is located about 20 km by road southeast of the town of Santa Rosa de Osos (population
around 45,000 in the town and the same in the surrounding municipality), which is the nearest town for
supplies and labour. While most of the regional male population has had some involvement in
prospecting or small-scale mining, training would be necessary for a labour force to be used for mine
development. Security is provided in the district by a military base (Guadalupe) and troops (Batallón
Pedro Nel Ospina). Police patrol the Municipality of Santa Rosa de Osos.
Local resources and infrastructure in the Santa Rosa de Osos Municipality are excellent. A 44 kV power
line to the south and a 13.2 kV line to the north (both within 8 km) service the area. Water is abundant in
main rivers but is not potable.
5.5 Regional Seismicity
Most of the seismicity in the project area is considered ‘microseismicity’, as 79% of the recorded events
are shallow (< 30 km deep) (CRA, 2013). Figure 5.2 shows maximum event magnitudes for the
Department of Antioquia.
Page 5.2
Expected NI
AMENDED ground TECHNICAL REPORT
43-101 accelerations according to the local building code (Norma Sismo-Resistente
Colombiana) reports a horizontal peak ground acceleration for the 475-year return period event of 0.15 g
(Figure 5.3). The project area is located in “Zone 3”, with an intermediate seismic classification. This value
is indicative of bedrock acceleration, which for the project area is covered by thick saprolite and residual
soils. A calculation of local seismicity and amplification potential has not been carried out to date.
After 1960 the national seismological network was established and about 30 monitoring stations are
working in the country.
Figure 5.2 Maximum expected magnitude (ML) for Antioquia (Project area inside red
square) From Sánchez (2009)
Page 5.3
TECHNICAL
Figure 5.3NI 43-101Peak
AMENDED ground REPORT
acceleration map from Norma Sismo Resistente Colombiana (NSR-
10, 2010)
Red dot indicates project area
Page 5.4
AMENDED NI 43-101 TECHNICAL REPORT6.0 HISTORY
6.1 Exploration History
Gold mining in the Department of Antioquia pre-dates, and continued during, Spanish colonial rule, mostly
exploiting alluvial deposits and oxidized veins (West, 1952). The Santa Rosa de Osos region was
discovered in 1541 by Captain Juan Francisco Vallejo, who named the area Valley of the Bears (de Osos)
because of the large number of the animals found in the region. Fifty years later, the gold potential of the
area was recognized, and hundreds of miners led by Captain Antonio de Espejo Serrano founded the
town of Santa Rosa de Osos in 1636. Gold production from the upland placers in the region reached its
peak in the 18th century. Mines within the Santa Rosa Gold Project area reportedly produced gold and
silver from bonanza-grade oxide ores during their heyday in the 1940s, but production declined as free
milling ores were exhausted. Small-scale gold mining continued intermittently and was recently in
operation at the Yaruma and Hilo Azul (Blue Vein) mines, which lie within the current resource area.
Exploration and small-scale gold mining by artisanal miners is ongoing about 10 km from the San Ramon
deposit within the Santa Rosa Gold Project area.
According to Jemielita (2011b), there was no known modern mineral exploration activity in the Santa Rosa
Gold Project area prior to the initial visit by Red Eagle Mining in July 2010. Since that date, Red Eagle
Mining has undertaken surveying and mapping of old mine workings, sampling and assaying in areas of
known mineralization, soil and saprolite grid geochemistry, airborne magnetic and radiometric geophysics,
and drilling of the San Ramon deposit shear zone. These activities are described in Section 9.0.
There are no known historical mineral resources or reserves estimates for the Santa Rosa Gold Project.
The first mineral resource estimate for the San Ramon deposit was reported in MDA’s Technical Report
for Red Eagle Mining, dated January 22, 2013 (Lindholm and Schlitt, 2013a). A subsequent Technical
Report (Lindholm and Schlitt, 2013b) described the updated resource estimate, which included a
combination of open-pit mineable material at a cut-off grade of 0.3g Au/t and underground mineable
material at a cut-off of 1.2 g Au/t. In 2014, a Preliminary Economic Assessment (Dyer et al., 2014) based
on this resource estimate was compiled. The September 2013 estimate is also used as the basis for the
Feasibility Study but the resource is now reported at a cut-off grade for only underground mining of 1.2 g
Au/t.
Based upon the existence of the extensive abandoned mine workings, past gold production appears to
have been significant, but actual historic gold production is unknown.
Page 6.1
AMENDED NI 43-1017.0 GEOLOGIC

TECHNICAL REPORT SETTING AND MINERALIZATION
7.1 Geologic Setting
7.1.1 Regional Geology
The northwest margin of South America, comprising Colombia and adjacent Ecuador and western
Venezuela, is a complex elongated mosaic of Paleozoic and younger, autochthonous and allochthonous
terranes that were accreted to the South American continent (Guyana Shield) and subjected to
transpressional tectonics and subduction-related magmatism along a 2,000km-long segment of the Pacific
Rim (Aspden and Litherland, 1992, and Cediel at al., 2003, as cited by Jemielita, 2011a, 2011b).
Regional-scale structural geology is characterized by anastamosing, sub-parallel, dominantly north-
northeast-striking, major faults and shear zones, some of which are interpreted to be terrane boundary
sutures. Subduction-related magmatic arcs were superimposed on these terranes during the Jurassic,
Cretaceous, Eocene to late Miocene, and Late Miocene to Recent and produced porphyry copper
mineralization related to each period of arc magmatism (Figure 7.1). These arcs are characterized by
plutonic batholiths, sub-volcanic intrusions, and associated volcanic rocks.
The Andean Cordillera in Colombia is composed of three distinct mountain chains: the Western Cordillera
(Occidental), Central Cordillera (Central), and eastern Cordillera (Oriental) that are separated by broad
inter-Andean valleys. The Santa Rosa Gold Project is located in the Central Cordillera within the
Cajamarca-Valdivia terrane. This terrane dominates the geology of the northern portion of the Central
Cordillera and is a composite lithotectonic unit that includes a metamorphic basement complex and the
Antioquia Batholith (Cediel and Caceres, 2000, and Cediel et al., 2003, as cited by Jemielita, 2011b).
The Cajamarca-Valdivia basement terrane is made up of early Paleozoic metamorphic rocks, mostly lower
greenschist- to lower amphibolite-grade metasedimentary units and oceanic ophiolitic volcanic and
intrusive rocks. These comprise a para-autochthonous prism that was accreted to the continental margin
along the Palestina fault system in the Ordovician-Silurian and subsequently underwent regional
metamorphism (Cediel et al., 2003, as cited by Jemielita, 2011b). The Cajamarca–Valdivia terrane is
bounded on the west by the Romeral fault, a north-striking, dextral transcurrent suture that defines the
eastern limit of allochthonous oceanic terranes accreted to the northern Andean margin during the late
Mesozoic and Cenozoic.
During the Mesozoic, the metamorphic rocks of the Cajamarca-Valdivia terrane were onlapped by
volcano-sedimentary lithologies. Reactivation of the Palestina fault system and initiation of the Romeral
fault system occurred from the Aptian-Albian, together with a period of uplift and erosion of the Paleozoic
basement and Mesozoic volcano-sedimentary sequences (Cediel and Caceres, 2000, as cited by
Jemielita, 2011b). The basement and Mesozoic lithologies were intruded by the Antioquia Batholith during
the Cretaceous under a regional tectonic regime of dextral transpression.
Page 7.1

Figure 7.1 REPORT
Volcano-plutonic Magmatic Arcs and Major Intrusions of the Northern Andes
(From Jemielita, 2011b, citing PRODEMINCA, 2000)
Page 7.2
The Antioquia
AMENDED TECHNICAL
Batholith
NI 43-101 is shownREPORT
by a red arrow. It is located in northern Colombia and belongs to the
early- to mid-Cretaceous magmatic arc.
The Antioquia Batholith occupies more than 7,000 square Kilometers and is a subduction-related, multi-
phase, calc-alkaline, I-type plutonic-intrusive complex composed mostly of quartz-diorite and granodiorite
(Feininger and Botero, 1982, as cited by Jemielita, 2011b). Rock textures are holo-crystalline, medium to
coarse grained, and phaneritic. Mineralogy is dominated by plagioclase and quartz +\- potassium feldspar
and up to 20% mafic minerals ranging from biotite to hornblende-dominant. Trace minerals include
magnetite and titanite. Local- to regional-scale metasomatism is evident as chlorite after biotite and
epidote after hornblende. The batholith is cut in places by centimeter- to meter-scale dikes of porphyritic
diorite, quartz diorite, aplite, and granite pegmatite. Small plugs of bi-pyramidal quartz- and biotite-phyric
hypabyssal granodiorite porphyry have been identified at various localities. Radiometric age dates are
scattered from around 90 to 60 Ma but cluster around 70 Ma.
The Antioquia Batholith was intruded during dextral-oblique accretion and transpression of the Andes
during the late Cretaceous–Eocene. Major lineaments, especially in the east, strike west-northwest to
northwest and may be related to dextral reactivation of the Palestina fault system in the east and dextral
transpression along the Romeral fault system in the west.
Figure 7.2 shows the regional geology in the vicinity of the Santa Rosa Gold Project area.
Page 7.3
AMENDED NI 43-101 TECHNICAL REPORT Figure 7.2 Santa Rosa Gold Project Regional Geology
Page 7.4
AMENDEDLocal
7.1.2 TECHNICAL REPORT
Geology
NI 43-101
The rocks in the vicinity of the Santa Rosa Gold Project are dominated by hornblende-biotite diorite and
quartz diorite typical of the Antioquia Batholith (Figure 7.3). Metamorphic rocks including amphibolites
and metasedimentary rocks occur as isolated roof pendants, primarily in the western half of the deposit
area. Pleistocene-Holocene volcanic ash cover is extensive. River valleys contain unconsolidated
alluvium.
Figure 7.3 Local Geology in the Vicinity of the Santa Rosa Gold Project
Page 7.5
AMENDEDProperty
NI 43-101Geology
The geology within the Santa Rosa Gold Project is characterized by relatively monotonous, coarse
grained, grey-colored, granular hornblende-biotite diorite and quartz diorite of the Antioquia Batholith
(Figure 7.3). Metamorphic rocks, including amphibolites (Valdivia & others Gr. on Figure 7.3) and
metasedimentary rocks (Valdivia Gr. on Figure 7.3), occur as isolated roof pendants, and dikes of micro-
diorite, dacite, felsite, aplite, and pegmatite are common. Red-brown saprolite is widespread and often
deep (up to 50 m). Deep weathering associated with saprolite formation has intensely altered the granites
to clay. Oxidized saprock continues below the saprolite and consists of more competent, albeit somewhat
decomposed, granitic rocks. Soils are generally about 50 cm thick and rarely up to 2 m. Schistose fault-
zone mylonite was observed at several locations in outcrop and adits.
7.2 Mineralization
Hypogene gold mineralization within the Santa Rosa Gold Project is generally associated with the shear
zones developed in homogeneous diorite country rock, with higher grades occurring in the associated
sulfide-mineralized quartz veins or as steep high-grade quartz-sulfide veins. There are also related
saprolitic gold deposits (Figure 7.4) and colluvial gold deposits, both of which have been mined by
artisanal miners underground and in hydraulically mined areas known locally as “baticiones.” The shear
zones and veins are best exposed in adits and baticiones.
Figure 7.4 Oxidized Saprolite Exposed in a “Batición”
Page 7.6
Colluvial and
saprolitic REPORT
gold workings and adits are concentrated in two principal areas: one cutting
concession B7560005 from west to east across the center of the concession; and one to the west and
northwest in concession H5790005 and the northern portions of concessions B7171005 and H5791005.
These two areas contain large abandoned colluvial workings and both abandoned and some active
tunnels made by artisanal miners. At the time of the initial resource estimate, a total of 258 adits had been
surveyed on the Santa Rosa Gold Project area, totalling 5,886m; many more underground workings have
been discovered since then, bringing the total number of known adits to 1,150. These adits are nearly all
developed in oxidized saprolite. The northwestern area has more adits than the southeastern one. Gold
mineralization is processed in local water-powered California stamp mills (Figure 7.5) with mercury
amalgamation or, in the southeastern area, a jaw crusher and mercury amalgamation mills. Figure 7.6
shows the locations of adits, baticiones, and drill holes on the Santa Rosa Gold Project.
Figure 7.5 Water-Powered Stamp Mill
Page 7.7

Figure 7.6 REPORT
Adits and Baticiones on the Santa Rosa Gold Project
Exploration by Red Eagle Mining within concession B7560005 has identified a mineralized shear zone
(San Ramon deposit shear zone) containing sulfide-bearing quartz veins, sheeted veins, and
anastomosing vein networks. The shear zone is characterized by both ductile deformation in the form of
mylonite development in the most intense zones and brittle deformation in the form of breccia and gouge
zones. The structural zone strikes roughly east-west with a strike length of approximately 2.0 km,
predominantly dips about 70° to the north, and has an average width that ranges from about 8m in the
western half to 21 m in the eastern half. The dip of the shear zone steepens to near vertical close to the
surface and shallows to 50° to 60° at depth.
East-west-trending structures, including the San Ramon deposit shear zone, appear to be related to
northwest-trending regional structures. Sinistral movement along these structures may have created east-
west dilation zones, up to 60 m wide in the case of the San Ramon deposit shear zone, into which quartz
and quartz-carbonate veins and veinlets were emplaced. Most of the quartz veins and contained sulfides
have been brecciated by post-mineralization deformation, which suggests that the mineralization is syn-
deformational.
Page 7.8
Numerous NI
micro-diorite dikes andREPORT
a few dacite dikes are generally intruded along shear-zone structures.
They are strongly fractured and brecciated and are commonly mineralized, which suggests the dikes are
pre-mineral and pre- to syn-deformational. Numerous dacite dikes also cross-cut the shear zone
structures. These may have been intruded along a fabric in the diorite country rock that is parallel to the
included schist bodies. These dacite dikes appear to be only weakly deformed by shearing and may be
predominantly post-mineral and post-deformational. However, assays of dike material commonly show
the presence of mineralization, so some of these dikes may have been emplaced during, but late in, the
mineralizing and deformational history of the deposit.
In the San Ramon deposit shear zone, mineralization occurs in fractured, brecciated, and ductily deformed
rock. The lowest levels of mineralization (~0.035g Au/t to ~0.1g Au/t) consist of very weak to moderate
ductile shearing that locally contains quartz veinlets and/or pyrite. At slightly higher grades (~0.1 to ~0.6 g
Au/t), mineralization is characterized by moderate to strong ductile deformation that contains scattered
quartz veinlets and sulfides, although the overall quantity of veinlets and sulfides is low. Some sericite,
weak to moderate brittle overprinting, and quartz veins greater than 12 mm in thickness that are mostly, if
not completely, barren of sulfides, may also be present. The boundary between the two grade ranges is
likely gradational, and there are numerous instances where quartz veins or pyrite are not apparent in
either. Shear zone intercepts containing these low grades of mineralization may be up to 80 m wide; the
maximum true width of the mineralized shear zone is about 60 m.
Higher-grade mineralization, >0.6 g Au/t, within the San Ramon deposit shear zone is characterized by
strong shearing, more intense sulfide mineralization, and quartz veins. At relatively lower grades within
this higher-grade mineralization (~0.6 to 5.0 g Au/t), strong ductile shearing with abundant sulfide minerals
and sericite is almost ubiquitous; quartz veins may or may not be present. Brittle overprinting is moderate
to strong and may be genetically related to the high-grade mineralization. At grades in excess of ~5.0 g
Au/t, massive and coarse-grained pyrite, pyrite stringers, medium-grained sphalerite, fine-grained galena,
and traces of chalcopyrite are present in quartz veins and quartz vein fragments, although some massive
pyrite and pyrite stringers occur independently of quartz veins. In the highest-grade intercepts (>50 g
Au/t), relatively thick (≥2 cm) massive pyrite veins are intermixed with quartz veins that contain coarse-
grained and massive pyrite, coarse-grained sphalerite, fine-grained galena, and traces of chalcopyrite.
The predominant distinguishing characteristic between low and higher-grade mineralization and for the
strength of gold mineralization in general, is the quantity of sulfide minerals. Both domains may appear
exactly alike in terms of strong ductile deformation and the presence of quartz veins, but the sulfide-
mineral content is the factor that distinguishes higher-grade mineralization in most cases.
The zones of strongest shearing have some demonstrable continuity between drill holes on individual
sections and between sections. The San Ramon deposit shear zone contains a pair of higher-grade
zones between 1 and 2 m in width that are present over a significant length of the deposit. Mineralization
at more extreme grades associated with coarse-grained sulfides in quartz veins lacks this continuity within
the shear zone. Red Eagle Mining staff has observed that one high-grade vein in the Hilo Azul workings is
approximately 30m in total length along strike. The vein appears to pinch out, then reappears after some
distance. Nevertheless, mineralization at ~2 g Au/t, the approximate economic cut-off grade, is
continuous over distances of hundreds of meters.
Page 7.9

The pair ofNImineralized REPORT
zones described above are parallel to the walls of the shear zone. The stronger
and better mineralized zone lies roughly along the footwall of the shear zone and has a fairly sharp
footwall contact but a less regular hanging-wall contact. The second mineralized zone, which lies toward
the hanging wall of the shear zone, is less persistent and less frequently mineralized than the footwall
mineralized zone. The fabric in the two mineralized zones is parallel to the trend of the San Ramon
deposit shear zone. The orientation and degree of mineralization of fabric in other parts of the shear zone
can vary. Locally, the shear zone may range from shallow-dipping to sub-vertical, may be cross-cutting to
the overall east-west shear zone fabric, and is variably mineralized.
Vein-quartz textures are mostly massive to ribbon-textured and, in places, medium- to coarse-grained
crystalline and often containing late calcite-infilled tensional features. Sulfides range from 1% to 5% but
can reach 10%, and there appears to be a direct correlation between sulfide and gold grade. Sulfides are
dominated by fine- to coarse-grained pyrite with subordinate sphalerite and galena and traces of
chalcopyrite and pyrrhotite. Oxides include hematite, goethite, and limonite. Black oxides are a
weathering effect caused by the migration of manganese away from organic-rich soil into fractures. There
is no preferential association of manganese oxides with gold mineralization. Gold and minor amounts of
silver occur as inclusions in sulfides, mostly in sphalerite and less commonly pyrite and galena. In
addition to a mixed oxide / sulfide transition zone, unoxidized sulfide minerals are commonly present
within the oxidized and saprolitized rocks within the shear zone.
There are calcite veins of various ages within the San Ramon deposit. Shear-zone controlled weak
propylitic alteration of regional extent pre-dates mineralization and consists of calcite-chlorite-prehnite
veins with over 80 % calcite. These veins are low in sulfides and do not contain gold. Calcite and calcite
veining are common in the main stage of the shear-zone mineralization; the veins are often brecciated,
suggesting they were an earlier part of the mineralizing event. This calcite is characteristically iron-rich
and weathers to a brown color. It is associated with sulfides, euhedral quartz, and the best gold
mineralization. There are also low-temperature veins of pure calcite that are late and cut all other
features. These calcite veins are regionally distributed. They contain only low levels of iron but no
sulfides, gold, or silicate minerals.
In the San Ramon deposit shear zone, the overall silver content is fairly low, but the silver content of the
gold grains is unusually high, in some cases >75% silver. Drill core assay and metallurgical testwork data
indicates a gold to silver ratio of approximately 1 to 1.85. On the basis of mineralogical studies, most of
the silver is alloyed with the gold rather than incorporated in sulfides. There can be significant quantities
of zinc, which is accompanied by minor quantities of lead. The presence of copper is insignificant. Silver
has not been geologically modelled.
Page 7.10
8.0
AMENDED NI 43-101 TECHNICAL REPORT DEPOSIT TYPES
Gold mineralization in the Santa Rosa Gold Project has characteristics in common with mesothermal or
orogenic and intrusion-hosted gold veins. Mineralization of these types consists commonly of quartz and
quartz-carbonate veins located in moderately to steeply dipping, brittle-ductile shear zones and locally in
shallow-dipping extension fractures. Veins commonly extend along strike and down dip over very
significant distances and occur alone or, typically, in complex vein networks and shear zones. Vein
minerals are mostly quartz and carbonates with minor native gold, pyrite, and base metals sulfides. Veins
are usually massive or ribbon-textured, but vein breccias and drusy, crystalline quartz can also occur.
Wall-rock alteration is zoned and consists of carbonate (often ankerite), sericite, and pyrite.
Gold at the Santa Rosa Gold Project was historically extracted from saprolite (and alluvial gravels).
Potential exists for discovery of new deposits in the area and additional mineralization down-dip of the
known San Ramon deposit mineralization.
Page 8.1
9.0
AMENDED NI 43-101 TECHNICAL REPORT EXPLORATION
9.1 Geologic Mapping
Red Eagle Mining has undertaken an extensive program of mapping and sampling old colluvial gold
workings, adits, and quartz veins within the Santa Rosa Gold Project area. Mapping and sampling of
several adits located in the eastern and western portions of the San Ramon deposit shear zone have
identified a significant number of zones of gold mineralization.
Red Eagle Mining has attempted to define the course of mineralized veins in the area of the San Ramon
shear zone by mapping the position of all identifiable adits, shafts, and crown holes (see Figure 7.6). In
the block of concessions (H5790005, B7171005, H5791005) west of the San Ramon deposit Red Eagle
Mining has been conducting surface mapping of geology, and the distribution of adits as well as surveys of
the baticiones in an attempt to better understand the distribution of veins and high grade shoots.
9.2 Geochemistry
Quartz veins, shear zones, and granodiorite diorite schist wall rocks exposed in artisanal adits and mines
have been extensively grab, channel, and panel sampled. A total of 4,637 samples have been taken.
Channel or panel sampling was used to test the quartz veins, while a program of continuous channel
sampling in adits that cut across the broader vein and shear structures in the oxide zone was initiated in
January 2011. A number of key adits were sampled in which the San Ramon deposit shear zone and
some of the hanging-wall structures are exposed.
Further sampling was carried out where sulfides were found to be present. Hilo Yaruma had been
previously sampled underground at a depth of 65 m and returned values of 95.8 g Au/t in a vein
approximately 30 cm wide (the shaft has since collapsed). The Hilo Azul shaft (quartz veins within the
shear zone) was sampled at a depth of 45 m and returned 41.6 g Au/t in the principal vein intersected; a
second vein approximately 20 m into the footwall gave values to 18.8 g Au/t. The shear zone away from
the quartz vein gave values up to 7.4 g Au/t. The reopened El Gato adit, which lies between the San
Francisco adit and the Hilo Azul shaft, also gave access to old stopes in partially oxidized mineralization
both in quartz veins and shear zone. Initial samples returned up to 19.6 g Au/t in the sulfide-rich mylonitic
shear zone material and 10.3 g Au/t in quartz vein samples.
A 200 m by 200 m ground auger saprolite geochemical sampling program was completed over the eastern
part of concession B7560005 with the objective of comparing the results with a mobile metal ion (“MMI”)
sampling over the same area. It was concluded that MMI was superior as an exploration tool, and
significantly easier to implement.
A soil sampling program was conducted over the Santa Rosa Gold Project, and samples were analyzed
for MMI. The grid covering the concessions was on 50 m spacing north-south and 200 m spacing east-
west, with some areas expanded to 400 m east-west spacing to expedite the initial reconnaissance
survey. Anomalies were identified corresponding to the San Ramon deposit shear zone as well as other
areas that have not been fully explored to date (Figure 9.1).
Page 9.1
NI 43-101 TECHNICAL
Figure 9.1
AMENDED REPORTof the Santa Rosa Concessions Showing Gold Anomalies
MMI Geochemistry
Red Eagle Mining has undertaken exploration of the concessions beyond the San Ramon deposit. This
work included stream-sediment, rock-chip and trench, adit, and MMI and conventional soil geochemical
sampling. This work is being conducted with the objective of identifying potential targets for mineralization
that may become future satellite feed to the San Ramon Gold Project. A total of 264 stream-sediment
samples and 440 soil samples have been taken to date.
MDA has not analyzed the sampling methods, quality, and representivity of surface sampling on the Santa
Rosa Gold Project, and those are not used in the mineral resource estimate.
Page 9.2
9.3
AMENDEDGeophysics
A helicopter-borne, high resolution, magnetic and radiometric survey was completed over the western part
of the original concessions and applications by MPX Geophysics on November 18 and 19, 2010. A total
of 451.9 line-Kilometers of data were acquired over the project area (total area 19.6 km2 at the time). The
survey was flown at a nominal mean terrain clearance of 70 m along north-south-oriented flight lines
spaced at 50 m with tie lines spaced at 500 m.
Red Eagle Mining retained consultants Paterson, Grant & Watson to interpret the aeromagnetic survey
(Ugalde and Misener, 2011). Results were received in January 2011 and are shown in Figure 9.2 and
Figure 9.3.
A similar aerial survey was subsequently flown over the eastern part of the project area, and is also shown
in Figure 9.2.
Figure 9.2 First Vertical Derivative of Total Magnetic Intensity
Note: (i) The area shown in red is the surface expression of the mineralized shear zone but is not the outline of MDA’s
mineral resource estimate. The resource outline is shown on Figure 10.1.
Page 9.3
AMENDED NI 43-101 TECHNICAL REPORT Total Potassium Radiometric Plot

Figure 9.3
Note: (i) The area shown in red is the surface expression of the mineralized shear zone but is not the outline of MDA’s
mineral resource estimate. The resource outline is shown on Figure 10.1.
The goals of the aeromagnetic interpretation were:
 Definition and mapping of important structures in the area that might have a role in gold
mineralization;
 Lithological mapping based on the airborne magnetic data;
 Overall refinement of the known geology of the area; and
 Definition of targets and areas of interest for an upcoming ground IP survey.
Page 9.4
Red Eagle NI
AMENDED Mining TECHNICAL
43-101notes REPORT data (Figure 9.2) indicated major structures that influenced the
that the magnetic
geology, particularly the San Ramon deposit shear zone. The radiometrics, especially potassic alteration
(Figure 9.3), correlated to ”baticiones” and the extensive artisanal mining areas that were being
uncovered.
An induced-polarization (“IP”) survey was conducted by Geofisica TMC SA de CV of Mazatlan, Mexico

over a 50 m (north-south) by 200 m (east-west) grid in the San Ramon deposit area (most of concession
B7560005) in June and July 2011 (Simard, 2011). The survey consisted of 13 north-south lines of 2.5 to
2.8 km in length, totalling 32.6 line-km. The pole-dipole array was used. Red Eagle Mining felt that the
results were inconclusive and decided not to continue IP surveying following unsuccessful drilling into
interpreted IP targets.
9.4 Topography
As described in more detail in Section 12.1.1, initial topography for the project was provided by
Terranalisis, Ltda., based in Santiago, Chile, and MPX Geophysics Colombia SAS (“MPX”) based in
Medellín, Colombia. Subsequently, a ground survey for topography was commissioned through the
project surveyor, MSc. Ricardo Lozano Botache with Estudio T-Rural Consultores. Finally, MPX
performed a high resolution Lidar topographic survey that covers concession B7560005, on which the San
Ramon deposit is located.
Page 9.5
10.0
AMENDED NI 43-101 TECHNICAL REPORT DRILLING
10.1 Summary
Red Eagle Mining has conducted all of the known drilling at the San Ramon deposit. From September
2011 to May 2012, Red Eagle Mining drilled 42 holes, including re-drills. From May 2012 to July 2012, an
additional 27 holes were drilled, consisting entirely of in-fill drilling in the sulfide mineralization to achieve
100 m centers within the San Ramon deposit shear zone. From July 2012 through October 2012, 74
holes were completed, designed to infill the oxide mineralization to 50 m centers. From October 2012
through May 2013, 95 holes were completed to test continuity of the mineralization in the sulfide zones
and extend the known deposit down dip. Holes drilled at the San Ramon deposit by Red Eagle Mining as
of the effective date of the resource estimate are SR-001 through SR-233 plus SR-028A, SR-032A, SR-
045A, SR-050A and SR-146B. These 238 holes total 45,609 m.
Further drilling for geotechnical and hydrogeological purposes was undertaken between May and July
2014 to investigate the ground conditions that will be encountered during plant construction and decline
development. Two of the 11 holes were drilled into the San Ramon deposit shear zone (SR-234 and 235).
Figure 10.1 shows drill-hole locations.
In general, holes were drilled sub-perpendicular to the strike of the generally east-trending shear structure
at various dips. Drill holes for the initial phases (SR-001 to SR-065) were collared some distance north of
the shear zone and intercepted the zone at depth (up to 300 m vertically). Subsequent holes (SR-066 to
SR-139) were collared closer to the shear and intercepted the shear mineralization closer to the surface.
New drilling for the resource update (SR-140 to SR-233) was intended to infill sulfide zones to 50 m
spacing and to extend known mineralization down-dip; the deepest shear zone intercept is approximately
550 m.
10.2 Drilling by Red Eagle Mining
This subsection describes drilling by Red Eagle Mining that comprises the database for the resource
estimate described in this report, and which formed the basis of the MDA PEA of October, 2013.
All drilling through May 2013 by Red Eagle Mining was core drilling. The drilling through July 2012 was
conducted by Cabo Drilling (Colombia) Corp. (“Cabo”), based in Bucaramanga, Santander Department,
Colombia, using two skid-mounted Boyles drill rigs, a BBS-37 and a BBS-56. Through July 2012, holes
were drilled with HQ core, reducing to NQ core as required by drilling conditions.
Drilling from July 2012 to October 2012 was conducted by Energold Drilling Corp. using a smaller skid-
mounted EGD II (Hydracore 600 Series II) for drilling in oxidized areas. This drilling consisted entirely of
HQ core.
For the drilling from October 2012 through May 2013, drilling of HQ-diameter core was performed by Cabo
using four rigs, two skid-mounted Boyles (BBS-37 and BBS-56) and two man-portable rigs (Duralite 1000
and Hydracore 2000). Skid-mounted rigs were moved between sites with a Caterpillar D6 bulldozer, while
the man-portable rigs were moved by a crew of up to 12 labourers and/or using winches.
Page 10.1
The core was

laid out, REPORT
reassembled to a best fit, and cleaned prior to collection of core recovery and rock
quality determinations (RQD) and logging. Geologists logged lithology, alteration, mineralization, and
structural data. The core was photographed using a digital camera mounted on a tripod; MDA observed
that the photographs were of excellent quality.
10.3 Drill-Hole Collar Surveys
Drill holes were staked-out by GPS and oriented by setting up a string-line laid out with a Brunton
compass. Collars were surveyed after completion of drilling by Ricardo Lozano Botache, a licensed
professional surveyor with Estudio T-Rural Consultores based in Bucaramanga. At the end of MDA’s
2012 site visit, the surveyor was setting up to resurvey all drill-hole collars, primarily to check suspected
discrepancies between drill collars and topography. All collar surveys through May 2013, as well as all
project data, are now normalized to the currently-used coordinate system (GCS_Bogotá, Datum:
D_Bogotá).
10.4 Down-Hole Surveys
Holes drilled through July 2012 were initially surveyed down-the-hole by Cabo’s drillers, and subsequently
by Red Eagle Mining, using a Reflex EZ-Trac® tool. Readings were taken every 100 m, starting at 100 m.
The planned azimuths (azimuths of string lines placed on pads to set up the drill rig) and dips were used
for the orientation at the surface; actual azimuths and dips were not measured once the drill rig was set up
and drilling. MDA noted some large differences between the surface azimuth and dip and the first
REFLEX reading at 100 m in previous phases of drilling. The most significant of these differences were
checked by Red Eagle Mining, and modifications to the collar and down-hole survey were made as
appropriate.
No down-hole surveys were conducted for drilling from July to October 2012, primarily because the oxide
holes are short and Red Eagle Mining determined that the deviations at shallow depths in previous drilling
phases were not significant.
For the drilling from October 2012 through May 2013, holes over 100 m deep (66 of 95 holes) were
surveyed at 100 m intervals using a Reflex EZ-Shot®/manual single-shot instrument with an external
reader, operated by Cabo’s drillers. First readings were taken between 6 m and 100 m depths. The
planned azimuths and dips were used for the orientation at the surface.
Page 10.2
FigureTECHNICAL
AMENDED NI 43-101 10.1 REPORT Location Map in the San Ramon Deposit Area
Drill-Hole
Page 10.3
11.0 TECHNICAL
AMENDED NI 43-101 SAMPLEREPORT
PREPARATION, ANALYSIS, AND SECURITY
This section describes sampling, sample preparation, analysis, and security for drilling by Red Eagle
Mining that comprises the database for the resource estimate described in this report. The information in
this section includes observations by MDA, information provided by Red Eagle Mining, and descriptions of
early work from Jemielita (2011b).
11.1 Sampling Procedures
11.1.1 Surface and Adit Sampling
Red Eagle Mining geologists performed and/ or supervised composite rock-chip, channel, and panel
sampling from surface outcrops and adit walls from all known accessible locations throughout the San
Ramon deposit area. Channel sampling was used on zones of dispersed mineralized quartz veinlets
using a maximum of 2 m sample lengths where there appeared to be little mineralization. Areas of
possible mineralization were sampled across that specific zone. The channels were cut with a pick with a
width of 5 to 10 cm, with best efforts to maintain consistent and unbiased samples; generally,
approximately 3 kg samples were collected for each sample interval.
MMI soil sampling was conducted by digging shallow pits 10 cm to 15 cm deep into the “B” soil horizon on
a 50 m (north-south) by 200 m (east-west) grid. Saprolite was sampled using an auger (to 5.5 m
maximum depth) on a 200 m by 200 m grid and analysed using conventional geochemistry.
11.1.2 Drill Sampling
Geologists determined sample intervals using the observed geology as a guide. Maximum sample length
for drilling through July 2012 was 2 m; from July through October 2012, it was 1 m. For drilling since
October 2012, mineralized material was sampled at 1m intervals, except in narrow zones where the
sample length could be reduced to a minimum of about 0.6 m. If less than 0.4 m of a geological zone
would remain when a 1 m sample was taken, the sample length was adjusted to match the geology and
provide maximum sample lengths. Outside of a mineralized zone, samples up to 2 m in length were
taken.
For the earliest drilling, the entire hole was sampled. As the geologists became familiar with the various
rock and alteration types and the grades associated with them, sampling was only undertaken in core in
the shear zones or zones that appeared to be mineralized, with two or more buffer samples above and
below these zones. This selective sampling covered the primary mineralized zones, as long as they were
recognized, but did not allow for a holistic assessment of a deposit that includes country rock.
For drilling through July 2012, the core was halved with a diamond saw; for infill drilling in oxide material
from July to October 2012, the entire core was sampled. For drilling from SR-140 and higher (October
2012 to May 2013), core was again cut in half with a diamond saw for sampling. The sample for assay
was placed into plastic bags containing the sample ID tag and sealed immediately. The bags were zip-
tied closed. Individual samples were placed into rice bags labelled with the contained sample number
range and zip-tied closed.
Page 11.1
AMENDEDwas
Sampling TECHNICAL
carried
NI 43-101 REPORT
out or supervised by Red Eagle Mining geologists.
11.2 Sample Preparation and Analysis
Rock-chip and channel samples originally were sent to ALS Minerals (“ALS;” formerly called ALS
Chemex) for sample preparation in Bogotá and analysis in Lima. Subsequently Red Eagle Mining
changed laboratories and sent samples for analysis to SGS del Perú, S.A.C. (“SGS”) for precious-metal
and multi-element assays and then later sent samples to Acme Analytical Laboratories S.A. (“Acme”).
Some channel samples from adits were re-sampled and then assayed using metallic screen analyses.
Saprolite auger samples were delivered to SGS Colombia S.A. (“SGS”) in Medellín or Bogotá for
preparation, and then 30 g pulps were forwarded to SGS in Lima for analysis. Analyses were performed
by SGS using gold fire assay plus 52 elements by ICP. Duplicates were analyzed by ALS using gold fire
assay plus 35 elements by ICP. Some samples were screened for coarse gold.
MMI soil samples were delivered to SGS in Medellín and forwarded directly to Lima for sample
preparation followed by analysis in Australia.
11.2.2 Drill Samples
Drill samples were shipped to Acme in Medellín for sample preparation. The samples were dried,
crushed, and pulverized to 200 mesh.
Following sample preparation, pulps were forwarded to Acme in Santiago, Chile for analysis. If there was
a backlog at the Santiago laboratory, the pulps were sent to Acme’s laboratory in Vancouver, Canada, for
analysis. For drilling through October 2012, the analytical lab performed gold fire assays on 30 g samples
with an AA finish plus a 36-element ICP scan. All assays returning values greater than 10 g Au/t (>0.2 g
Au/ton in early drilling) were fire assayed again but with a gravimetric finish. For the drilling from October
2012 through May 2013, 50 g charges were used for both fire assay-AA and fire assay-gravimetric
analyses.
Field and preparation duplicates at the time of MDA’s 2012 site visit were analyzed in sequence with the
original at Acme.
For SR-001 to SR-028A, checks were made on samples suspected of coarse gold and were subjected to
metallic screen analyses; no metallic screen assays have been performed on drilling samples since
completion of those holes.
Page 11.2
11.3
AMENDEDSample
NI 43-101 Security
TECHNICAL REPORT
Chain of custody is maintained for all samples. Rock samples (average 2 kg) were placed into a plastic
bag marked with the sample number on both sides and on a piece of flagging tape that was placed inside
the bag; the bag was sealed immediately. The sample and sample location were then photographed.
Bagged samples were put into larger sacks in the field, and when filled, these sacks were sealed in the
field. Sample sacks were then securely transported to the sample storage location. Every Friday or
Saturday, the sample sacks were transported directly to the sample preparation laboratory in Medellín,
together with dispatch documents. Logistics were supervised and monitored by Red Eagle Mining’s
security staff and support. The company then confirmed receipt of the samples with the laboratory.
11.3.2 Drilling Samples
Core was checked and collected by Red Eagle Mining geologists from the drill rig at least once per shift
and transported to the core-processing facility at the Red Eagle Mining camp. The wooden core boxes
were covered and kept closed with inner-tube strips. The core-logging area and storage buildings consist
of metal-framed structures with corrugated plastic roofs, and brick walls and/or plastic-covered wire
fencing on all sides. The building is locked when no one is on site. On a weekly basis, Red Eagle Mining
personnel transported the samples via company truck to the sample preparation laboratory in Medellín,
where custody was transferred to Acme.
The remaining core was stored in locked buildings at the camp, as are coarse rejects and pulps returned
from the laboratory.
11.4 Quality Assurance / Quality Control
Red Eagle Mining purchased certified standards and certified blanks and uses field duplicates for QA/QC
on their analytical work for rock samples. A duplicate, standard, or blank was included with every
10 samples sent for analysis.
For MMI soil geochemistry samples, a duplicate was included with every 30 samples, but no blanks or
standards were used.
11.4.2 Drill Sampling
Approximately 10% of the samples shipped to Acme were either a blank, a standard comprising one of
four standard samples, or a duplicate. Pulp blanks and standards were submitted with the original
samples and were not “blind” to the laboratory.
Page 11.3
Standards NI
AMENDED for43-101 TECHNICAL
gold were insertedREPORT
into the sample stream every 40 samples. For all drilling, a total of
11 certified standards were obtained and submitted with original drill samples. Of the 11 standards, nine
were used for all but four of the submitted pulps. No sample pulps were re-assayed as a result of
standard failures for all drilling prior to the initial resource estimate (SR-001 to SR-139). For the drilling
from October 2012 to May 2013, when standards failures occurred, Red Eagle Mining assembled and
renumbered all pulps in their possession in the batches associated with the failures, and resubmitted
samples to the laboratory. These were accompanied by two to four standards; two to four pulp blanks,
and one or two pulp duplicates for each batch. In all, 173 original assays were submitted for re-assay
from SR-160 (66), SR-197 (58), and SR-213 (49). At least three different standards were alternately used
at any given time for drilling prior to the initial resource estimate; however, only one at a time was
submitted for drilling associated with the resource update (SR-140 to SR-233).
For all drilling, four certified blank pulps have been inserted into the sample stream at a rate of one for
every 40 samples prior to shipment to the preparation laboratory in Medellín.
A field or preparation duplicate was submitted with samples from the deposit at a rate of one for every
20 samples. All duplicates were assigned a consecutive sample number after the original, and both were
analyzed. Field duplicates consisted of quarter-core splits (also quarter-core original) in the first two
phases of drilling (SR-001 to SR-065), half-core splits (also half-core original) in the next phase of drilling
(SR-066 to SR-139), and quarter-core splits for the remainder of the drilling (SR-140 to SR-233).
Preparation duplicates were splits of coarse rejects.
In addition to the standards, blanks, and duplicates, 169 samples were sent for check assays to SGS at
their laboratory in Lima, Perú; these were discussed in MDA’s first Technical Report (Lindholm and Schlitt,
2013a). Two batches totalling 131 pulp samples and representing a randomly selected 5% of original
mineralized samples were submitted to ALS in Lima for check assaying in April 2013. Samples were
analyzed by 50 g fire assay with an AA finish (ALS code Au-AA26), with analysis by 50 g fire assay with a
gravimetric finish (ALS code Au-GRA22) for samples exceeding 100 ppm Au. QA/QC results are
discussed in Section 12.2.
11.5 Bulk Density and Specific Gravity
Bulk wet-density data were regularly collected from drill holes SR-001 to SR-155, with measurements for
selected samples taken about every 10 m. The samples were weighed in air and then, after wrapping in
cling film to prevent any water absorption, were suspended in water, and the weight of the water displaced
was measured, using a simple overflow system.
At MDA’s request, 65 bulk specific gravity measurements were performed by Red Eagle Mining on oven-
dried samples. A similar process and apparatus for measuring bulk wet densities was used, except that
samples were dried, and the weight of wrapped and suspended sample submerged in water rather than
the weight of the water displaced was used to calculate specific gravities.
Page 11.4
For drill samples

from REPORT
holes SR-156 through SR-233, bulk dry densities were obtained using the same
procedures that were used for wet-density determination, except that all samples were oven dried at
125°C. Fresh rock was usually dried between two and three hours, saprock for three to five hours, and
saprolite no less than 12 hours. According to Red Eagle Mining, only saprolite samples were wrapped in
plastic before being suspended in water.
11.6 Summary Statement
The San Ramon deposit drill-core sampling procedures, sample security protocols, and analytical
methods are acceptable. A QA/QC program has been in place for all drilling that is adequate for
evaluation of assay quality. The overall results of the QA/QC program indicate that the analytical data are
of sufficient quality for use in the resource estimate.
Page 11.5
12.0
AMENDED NI 43-101 TECHNICAL REPORT DATA VERIFICATION
This section describes data verification for drilling by Red Eagle Mining that comprises the database for
the resource estimate described in this report but not holes drilled since May 2013 that post-date the
resource estimate and are discussed in Section 10.1.
12.1 Database Audit
12.1.1 Drill-Collar Audit
Initial topography for the project was provided by Terranalisis, Ltda., based in Santiago, Chile, and MPX
Geophysics Colombia SAS (“MPX”), based in Medellín, Colombia. After discrepancies were noted
between topography and drill-hole collars and after transferring project data to the currently-used
coordinate system (GCS_Bogotá, Datum: D_Bogotá), the project surveyor, MSc. Ricardo Lozano Botache
with Estudio T-Rural Consultores, was contracted to perform a ground survey for topography. MPX then
performed a Lidar topographic survey that covers concession B7560005, on which the San Ramon
deposit is located. A visual comparison of collars (initial and 2013 drilling) and the Lidar topography
revealed a reasonable correlation. This topography, with some of the Terranalisis topography outside the
limits of the Lidar survey attached to include areas where pits and mine facilities might be located, is used
for the current modelling and resource estimation work.
Certified collar coordinates for all except four of the 238 holes drilled at the San Ramon deposit were
provided directly to MDA by MSc. Ricardo Lozano Botache. All coordinates were compared to Red Eagle
Mining’s database, and no errors were found.
12.1.2 Down-Hole Survey Audit
No original REFLEX data were available for audit of down-hole survey data for holes drilled prior to the
initial resource estimate. The data recorded on individual spreadsheets for each drill-hole log were the
only data available for audit; MDA compiled these data into a single spreadsheet and compared them to
Red Eagle Mining’s database. Of a total of 175 records in Red Eagle Mining’s database, 156 records
(89%) were audited. A total of four significant errors, three in depths and one in dip, and 20 insignificant
discrepancies were found. All errors and discrepancies were corrected in the final database used for the
resource estimate. Also, 12 additional records found on spreadsheets for the drill-hole logs were added to
the database.
Page 12.1
During the NI
AMENDED 43-101ofTECHNICAL
course REPORT
the audit, MDA noted that there were radical bends in the upper 100 m of some drill
holes. No REFLEX readings were taken at or just below the collars of the drill holes, nor were azimuth
and dip readings taken with a compass while the rig was set up on the pad. The planned azimuths and
dips were used for the collar orientation in the Red Eagle Mining database. Red Eagle Mining reviewed
the cases where the record at the collar differed from the first REFLEX record at 100m by more than 10°
in azimuth and 5° in dip, and modified as necessary. Many orientations at the collar were replaced by
Reflex records taken at 100 m depth; any errors discovered were corrected; and other records were
unchanged and accepted. The resulting down-hole survey database appears reasonable, with radical
bends in the upper parts of some holes removed, although some insignificant discrepancies of less than
5° could still exist. MDA recommended that direct azimuth and dip readings be recorded while the drilling
rig is set up on site and used as the survey record at 0 m depth.
Red Eagle Mining supplied MDA with original REFLEX down-hole surveys in both .pdf and spreadsheet
format for all new drilling (SR-140 to SR-233). The logs indicate that Red Eagle Mining staff performed
the down-hole surveys using a leased REFLEX EZ-Trac tool. In addition, similar files were provided for
some of the previous drilling (SR-059 to SR-069). MDA compiled all data from the .pdf files into a
spreadsheet for comparison to Red Eagle Mining’s database. In total, the files contained 388 records
from 90 drill holes.
Initial evaluation of the data revealed numerous records that were not used in Red Eagle Mining’s
database, and a significant number of modified azimuth, dip, and depth values. It was apparent that,
beyond correction of azimuths for magnetic declination, the down-hole survey data had been manually
manipulated to a large degree. The data modifications were done based on reasonable criteria; however,
none of the changes were documented and none could be verified. MDA reconstructed the down-hole
survey database for the new drilling, as well as for holes SR-059 to SR-069, from the .pdf files and applied
a correction for magnetic declination as needed. Records were removed only if anomalous magnetic
strength measurements suggested the readings were suspect (35 records) or if there were implausible
differences in azimuth or dip over a short distance (9 records, mostly first or last reading). A total of
46 records were added to Red Eagle Mining’s database, and all work was documented and agreed to by
Red Eagle Mining staff.
The data reconstructed from original REFLEX logs were merged with the down-hole survey database
previously audited for the initial resource estimate. The resulting down-hole survey information in the
database is considered suitable for use in the resource estimate.
12.1.3 Geological Data Audit
The down-hole geological data available to MDA for data verification and modelling include lithology,
weathering (saprolite), redox, alteration, geotechnical, and some structural data provided by Red Eagle
Mining. Much of this information, particularly the lithology and weathering data from earlier drilling
programs, had been normalized since the last resource estimate. During the process of geologic and
mineral domain modelling, core photos were consulted and the geological data were found to be
reasonably accurate. Red Eagle Mining’s geologic data were confirmed, although differences in
interpretations will always occur.
Page 12.2
AMENDEDAssay
12.1.4 TECHNICAL
Database
NI 43-101 Audit REPORT
For the initial database audit (SR-001 to SR-139), MDA downloaded all assay certificates directly from
Acme’s website. These certificates were compiled into one spreadsheet, and quality-control records were
removed. Using the data for sample intervals with multiple assay types, an evaluation of standard fire
assays versus metallic-screen data and then versus fire-assay gravimetric data was undertaken, and it
was determined there is no apparent bias between groups that would preclude use of one assay type over
another. Accepted assays were determined, in agreement with Red Eagle Mining staff, for use in the
resource estimate; metallic screen assays, fire assay gravimetric, and standard fire assays were used in
that order of preference.
For the initial database audit, the assay data compiled by MDA from Acme certificates were compared to
Red Eagle Mining’s database. A total of 13,350 samples from 203 assay certificates were compiled; these
included QA/QC samples. These assays were merged with Red Eagle Mining’s assay database, which
contains 11,665 samples, excluding QA/QC. Only 118 assays in the database did not have matching data
from assay certificates, so 99% of the database was audited. No significant errors or discrepancies were
found. The only systematic discrepancies, though all are considered insignificant, were for values below
detection, which were entered into the Red Eagle Mining database as half the detection limit.
For the current estimate, MDA again downloaded all assay certificates for SR-140 to SR-233 directly from
Acme’s website, compiled them into one spreadsheet, and removed quality-control records. The new data
contained only standard fire assay-AA and fire assay-gravimetric assays, of which the latter were
analyzed only for over-limit values. MDA and Red Eagle Mining staff agreed that standard fire assays
should be replaced by fire assay-gravimetric assays when fire assay-gravimetric assays were available.
The assay data compiled by MDA from Acme certificates were compared to Red Eagle Mining’s database.
A total of 5,651 samples from 96 assay certificates were compiled; these included QA/QC samples.
These assays were merged with Red Eagle Mining’s assay database, which contains 5,320 new samples,
excluding QA/QC. No assays in the database were unmatched by data from assay certificates, so 100%
of the database was audited. No significant errors or discrepancies were found. Below detection limit
assays which had been entered into the Red Eagle Mining database as “0”, were replaced with values of
“0.0025”, which is half the detection limit.
MDA reviewed all available core photos and recorded intervals of no core recovery. These intervals of no
recovery had been recorded as part of one or both adjacent sample intervals, so that a portion of the
assay represented recovered core plus the unrecovered interval. In these cases, MDA added intervals
with values that indicate ‘no assays’ to the database, and shortened the adjacent intervals so they
represent the proper length of assayed core. MDA also merged specific gravity/density intervals to assay
intervals, which required some splitting of assay intervals, so the data could be loaded into the assay
database. Finally, after review of Red Eagle Mining’s QA/QC summary, MDA replaced initial assays
associated with standard failures in SR-160, SR-197, and SR-213 with pulp re-assay values.
All assay database changes were made in communication with Red Eagle Mining staff and were mutually
agreed upon. The final, combined, and fully audited assay database is considered adequate for use in the
resource estimate.
Page 12.3
AMENDEDSpecific
12.1.5 TECHNICAL
NI 43-101Gravity Data REPORT
The 65 specific gravity measurements used for the initial resource estimate, including all raw data used for
calculations, were provided by Red Eagle Mining. MDA checked all calculations, and no errors were
found. The specific gravity measurements were performed after MDA’s site visit in September 2012, so
MDA was unable to verify the process. However, MDA did inspect the similar process and apparatus for
measuring bulk wet densities during the site visit, and these were determined to be adequate. Also, Red
Eagle Mining reportedly used procedures for determining specific gravities of oven-dried samples that
were provided by MDA. Specific gravity/density measurement procedures are discussed in Section 11.5.
The 862 additional dry-density tests on samples from SR-157 to SR-233 were provided by Red Eagle
Mining with raw data. MDA again checked all calculations; three errors were found and corrected. The
apparatus and procedure used to determine dry density were the same as those used for wet-density
determination, except that an oven-dried sample was used (Section 11.5). The wet-density procedure
was observed during MDA’s initial site visit in September 2012 and is, with the exception of the lack of
sample drying, considered to be adequate for measurement of dry densities. The drying process for dry-
density determination was never verified. The specific gravity/dry-density data are considered suitable for
use in the resource estimate.
12.1.6 Geotechnical Data
All geotechnical data (for SR-001 to SR-233), which include core recovery, RQD, and hardness, were
provided by Red Eagle Mining. The data were collected on core-run intervals, and measured lengths
used to calculate recovery and RQD were included. MDA checked all calculations and found numerous
discrepancies. All were corrected in agreement with Red Eagle Mining. These modifications included
addition of missing data or calculations, correction of calculated interval lengths and recovery / RQD
percentages, removal of extraneous records, and movement of decimal points in lengths or percentages.
The data were then merged with assay intervals, and recovery and RQD values of split intervals were
weight averaged to produce the combined values; these data were used to evaluate sample integrity.
RQD values of “0” were entered for saprolite and saprock, regardless of the condition of the core. This is
somewhat misleading, since an RQD value of “0” indicates that all recovered core pieces were smaller
than 10cm diameter, which suggests the sample integrity is poor. However, rock that is converted mostly
or completely to clay is treated as a soil rather than a rock in terms of engineering properties, so RQD
does not apply. It is more appropriate to assign no value to RQD in heavily weathered rocks. MDA
replaced RQD values of “0” with “-1” for all records that had no measured RQD lengths. However, it was
impractical to investigate all cases where RQD values were “0”, so many of the values of this type in Red
Eagle Mining’s database have been retained.
In general, the geotechnical data are considered adequate for use in the resource estimate. However, the
RQD values of “0” in saprolite and saprock must be taken into account for statistical evaluation of sample
integrity.
Page 12.4
12.2
AMENDEDQuality
NI 43-101Control andREPORT
TECHNICAL Quality Assurance
The quality control and quality assurance program implemented by Red Eagle Mining involved the use of
standards, blanks, field and preparation duplicates, and check assays of pulp duplicates at a second lab.
Procedures are discussed in Section 11.4. The standards used have been supplied by CDN Resource
Laboratories Ltd., Calgary, Canada.
12.2.1 Standards Assays
Standards data were supplied to MDA in the assay database by Red Eagle Mining for all assayed drill-
hole samples. Certificates containing standards assays, which were identified using Red Eagle Mining’s
spreadsheet, were also downloaded directly from Acme’s website.
Initial Resource Estimate (SR-001 to SR-139)
Prior to the initial resource estimate (SR-001 to SR-139), the database contained records for 351 analyses
of six certified standards. The range of values of the commercial standards was appropriate to the
samples being processed. MDA evaluated the standards using charts similar to the common Shewhart
charts. An example of one such chart appears below as Figure 12.1.
Figure 12.1 Control Chart for Gold in Standard #3 (SR-001 to SR-139)
Page 12.5
In Figure 12.1
the red REPORT
line indicates the accepted value of the standard, and the blue lines indicate the
mean plus and minus two standard deviations. The purple lines indicate the control limits, set at the mean
plus and minus three standard deviations, using the statistics provided by the manufacturer of the
standard. Analyses falling outside the control limits are deemed to be failures.
The analyses displayed in Figure 12.1 include one failure above three standard deviations, representing a
1.3% failure rate for that standard. The chart also indicates that six analyses fall outside the two standard
deviation limits, all of them high. The analysis shows that the lab has an overall high bias of 2.5% for
analyses of this standard.
Charts such as Figure 12.1 were prepared for all of the standards. Only the one example is provided in
this report. A summary of the results obtained for all of the standards appears in Table 12.1.
Table 12.1 Summary of Gold Results for Standards (SR-001 to SR-139)
Failures
Standard ID Count
±3SD Consecutive ±2SD ±2SD
#1 69 9 1 17
#2 37 2 1 6
#3 77 1 0 7
#4 16 2 0 3
#5 131 0 1 14
#6 21 0 0 2
Counts 351 14 3 49
Percent 4.0 0.8 14.0
In addition to analyses falling outside the three standard deviation control limits, consecutive analyses
outside of two standard deviations may also be considered failures. The tabulated results indicate a total
of 17 failures (of both types) of 351 standards analyses, for a failure rate of 4.8%. While the error rate is
not unusual, there is no evidence that any follow-up has been done to investigate the errors and, where
necessary, obtain re-analyses of suspect batches. The lack of follow-up is a deficiency. It is interesting
that more than half of the failures occur on one standard sample (Standard #1), which accounts for 10 of
the 17 failures; this may indicate a problem with the standard rather than the laboratory results.
Page 12.6
Although not
AMENDED TECHNICAL
considered
NI 43-101 failures,REPORT
having 14.0% of the analyses fall outside the two standard deviation
limits is somewhat high. The majority of these are high relative to the accepted value of the standard.
The high rate of values above two standard deviations (positive relative differences) is more likely a
reflection of the overall high bias of analyses of the standards relative to the certified accepted values.
Any statistically significant group of analyses of a standard performed by a single lab will have a bias
relative to the accepted or expected value for that standard. There is a positive mean of difference for five
of the six standards that range from 0.8% to 3.5%, and average overall mean is about +1.7%. Average
means of difference may be a general indicator of bias but are often heavily skewed by high assay values,
so are not always an accurate method of quantifying bias.
Resource Update (SR-140 to SR-233)
For the current resource update (SR-140 to SR-233), the database contained standard sample assay
records for 171 analyses of three certified standards. The range of values of the commercial standards
was limited; the accepted value of two of the standards was 4.075g Au/t and 3.85g Au/t, and the other was
7.72g Au/t. Also, only one standard was used over any given period of time. The same standard was
submitted with samples repeatedly until the supply of that reference material was exhausted, and then
another was used. An example of one of the standard charts appears below as Figure 12.2.
Figure 12.2 Control Chart for Gold in Standard #7 (SR-140 to SR-233)
Page 12.7
In all, the analyses

AMENDED TECHNICAL
NI 43-101of REPORTtwo failures above three standard deviations, which represent a
standards produced
1.2% failure rate for the program. There were also eight (4.6%) analyses that fell outside the two standard
deviation limits, all of them high, but none of them consecutive. While these do not represent failures, it is
a consequence of a slight high analytical bias. This is corroborated by visual inspection of the charts; the
majority of data on all three charts plot above the accepted value of the respective standards. In Figure
12.2, the standard assays plot below the accepted value in November 2012, and over time drift above the
line and back below by February 2013. The drift stays within acceptable limits and might be attributed to
self-correction by the lab in response to results of internal QA/QC programs.
The error rate of 1.2% is not unusual. More importantly, Red Eagle Mining immediately identified the
failures and followed up by re-numbering and re-submitting all pulps in the batches associated with each
failure. Pulp standards and blanks were submitted with these checks at the same rate as with the original
batches. MDA examined the assay results of the reference materials that were sent with the re-submitted
pulps and confirmed there were no failures. Red Eagle Mining had identified a third standard failure in the
original assays but determined that the discrepancy resulted from a mislabelled standard number. The
pulps in that batch were submitted for re-assay anyway. A total of 173 original assays were replaced by
the re-assays for all three batches from SR-197, SR-213, and SR-160 (the non-failure).
Initially, Red Eagle Mining identified as many as 12 standard failures outside the three-standard deviation
threshold. However, 10 of these were determined to be mislabelled standard numbers. In all, there were
22 cases of mislabelled standards or blanks. All plotted within the three-standard deviation threshold on
the correct charts. MDA examined these cases and determined that the conclusion that they are not
standard failures is reasonable. However, the high rate of mislabelled reference materials is problematic
and suggests that procedural improvements should be made in order to eliminate sample-handling errors.
Summary of Results
The results of the standards analyses for all drilling support the acceptability of Red Eagle Mining’s assays
as part of the basis for the resource estimate described in this report. Initially, there was a lack of follow-
up and explanation for the approximately 5% of standard failures, which detracted from the overall quality
of the support for the data from drill holes SR-001 to SR-139; this was taken into account in MDA’s
classification of the resource estimate. However, for SR-140 to SR-233, Red Eagle Mining immediately
addressed the few standard failures that occurred, which increases the level of confidence in the
associated assays.
12.2.2 Field and Preparation Duplicate Sample Assays
For the initial resource estimate, a total of 316 field duplicate samples and 306 preparation duplicate
samples were submitted with core samples from San Ramon deposit. Field duplicates consisted of
quarter-core splits (duplicating quarter-core original samples) in the first two phases of drilling and half-
core splits (duplicating half-core original) in the last phase of drilling. Preparation duplicates are splits of
coarse rejects. All original and duplicate sample pairs were analyzed by Acme, and assay results were
downloaded directly from Acme’s website by MDA.
Page 12.8
Figure 12.3NIdepicts
AMENDED 43-101 aTECHNICAL REPORT
relative-difference graph which shows the difference (plotted on the y-axis) of each
Acme field duplicate fire assay relative to its paired original Acme analysis. Calculation of relative
difference in this way gives a worst-case value for the difference, but also gives a better presentation of
the real variability. The x-axis of the graph plots the mean gold grades of the paired data in a sequential,
non-linear fashion ordered by increasing grade. The red line shows the moving average of the relative
differences of the pairs and provides a visual guide to trends in the data. Positive relative-difference
values indicate that the duplicate analysis is greater than the original. Pairs for which both original and
duplicate values are below the detection limit have been excluded to shorten the graph. Comparison of
means and basic statistics are given in Table 12.2.
Figure 12.3 Relative Percent Differences for Field Duplicates (SR-001 to SR-139)
Table 12.2 Comparison of Means for Field Duplicates (SR-001 to SR-139)
Gold (mean of pairs > 0.0025 ppm)

With 5 extreme outliers removed
Valid N Median Mean Wt Avg Std.Dev. CV Minimum Maximum Units
Original 239 0.018 0.194 0.177 0.673 3.47 0.003 5.250 ppm
Duplicate 239 0.022 0.209 0.195 0.750 3.59 0.003 6.900 ppm
Difference 22% 8% 10%
Page 12.9
The apparently
AMENDED largeTECHNICAL
NI 43-101 REPORT
relative differences of ±200% on the left side of Figure 12.3for means of pairs at and
below 0.005 g Au/t are due to original or duplicate samples below the detection limit. For mean of pair
calculations and statistics, assays below detection were entered as half the detection limit, or 0.0025 g
Au/t. The small differences in pairs that include these values are large relative to the mean of pairs and
therefore return misleadingly pronounced relative differences on the chart. These are not a reflection of
significant bias or variability in the samples and can be ignored.
Five extreme outliers that had relative differences greater than 1,000% were excluded from the graph and
basic statistics. It should be noted that a large portion of the field duplicate data are below potentially
mineable grades. Only 25 of the 239 duplicate pairs shown in Figure 12.3 have average grades at or
above 0.3 g Au/t. Any observed variability or apparent bias between original and duplicate sample assays
at lower grades are immaterial. At grades above 0.3 g Au/t, variability is still apparent, and there is no
obvious bias that is not driven by extreme outlier grades, however, the data set is too small to draw
meaningful conclusions.
Figure 12.4 plots the relative difference between original and duplicate samples versus the mean of
sample pairs for preparation duplicates. Pairs for which both original and duplicate values are below the
detection limit have been excluded to shorten the graph. Comparison of means and basic statistics are
given in Table 12.3.
Figure 12.4 Relative Percent Differences for Preparation Duplicates (SR-001 to SR-139)
Table 12.3 Comparison of Means for Preparation Duplicates (SR-001 to SR-139)
Page 12.10

Valid N Median Mean Wt Avg Std.Dev. CV Minimum Maximum Units
Original 215 0.027 0.533 0.498 2.626 4.93 0.003 31.500 ppm
Duplicate 215 0.027 0.539 0.505 2.572 4.77 0.003 30.100 ppm
Difference 0% 1% 1%
Two extreme outliers that had relative differences greater than 1,000% were excluded from the graph and
basic statistics. Again, most of the preparation duplicate data are below potentially mineable grades.
Only 37 of the 221 duplicate pairs shown in Figure 12.4 have average grades at or above 0.3 g Au/t. At
grades above 0.3 g Au/t, some variability and little or no bias are apparent.
Examination of the full data sets shows that, unlike the chart for field duplicates, the chart for preparation
duplicates has very little bias towards either the original or duplicate value. This is also indicated by the
higher mean of relative differences and absolute value of relative difference means for field duplicates (8%
and 105%) relative to preparation duplicates (1% and 59%). Both graphs indicate that variability
diminishes in the higher grade ranges.
12.2.3 Resource Update (SR-140 to SR-233)
All original and field duplicate sample pairs were analyzed by Acme, and assay results were downloaded
directly from Acme’s website by MDA.
For the most recent drilling, a total of 114 and 107 field and preparation duplicates, respectively, were
submitted with samples from the San Ramon deposit. Field duplicates consisted of quarter-core splits
(original was half-core). All original and duplicate sample pairs were analyzed by Acme, and assay results
were downloaded directly from Acme’s website by MDA. Figure 12.5 plots the relative difference between
original and field duplicate samples versus the mean of the sample pairs. Comparison of means and
basic statistics are given in Table 12.4.
Page 12.11
Figure
AMENDED 12.5 TECHNICAL
NI 43-101 REPORT
Relative Percent Differences for Field Duplicates (SR-140 to SR-233)
Table 12.4 Comparison of Means for Field Duplicates (SR-140 to SR-233)

Count Median Mean Std. Dev. CV Min. Max. Units
Original 77 0.038 0.294 1.031 3.507 0.0025 6.920 ppm
Duplicate 77 0.031 0.288 0.930 3.232 0.0025 6.269 ppm
Diff. -18% -2% 0.000 -9%
Fifteen outliers that had relative differences greater than 400% were excluded from the graph and basic
statistics. This is an atypically large number of outliers to remove. The moving average line alternates
between ~100% bias with duplicate greater than original and vice versa. At material grades above 0.3 g
Au/t, there are only 13 pairs, which is not a large enough data set to draw meaningful conclusions. The
absolute value of the relative difference above 0.3 g Au/t is 81%, but the high value is driven by two
relatively large means of pairs.
Page 12.12
A total of 107
preparation REPORT
duplicate samples, which consisted of coarse reject splits, were submitted with
samples from the San Ramon deposit. Figure 12.6 plots the relative difference between original and
duplicate samples versus the mean of sample pairs for preparation duplicates. Comparison of means and
basic statistics is given in Table 12.5.
Figure 12.6 Relative Percent Differences for Preparation Duplicates (SR-140 to SR-233)

Valid N Median Mean Std. Dev. CV Minimum Maximum Units
Original 79 0.067 0.242 0.564 2.327 0.0025 3.298 ppm
Duplicate 79 0.054 0.241 0.563 2.340 0.0025 3.147 ppm
Difference -19% -1%
Page 12.13
Four outliers
AMENDED TECHNICAL
that had
NI 43-101 REPORT greater than 200% were excluded from the graph and basic
relative differences
statistics. Unlike the chart for field duplicates, the chart for preparation duplicates shows only minor bias
towards either the original or duplicate. At material grades above 0.3 g Au/t, there are only 10 pairs, which
is not a large enough data set to draw meaningful conclusions. The absolute value of the relative
difference for all data is 36%, which decreases to 12% for data above 0.3 g Au/t, suggesting decreasing
variability at higher grades.
Summary of Results
The high positive and negative relative differences observed in field, and to a lesser extent, preparation
duplicate pairs is indicative of natural heterogeneity of gold within the San Ramon deposit (and gold
deposits in general). This imparts some risk to the resource estimate due to local grade variability,
although the additional risk is difficult to quantify.
Variability decreases significantly, and overall bias is less apparent from field duplicates to preparation
duplicates. Some of the natural heterogeneity inherent in the samples that was apparent in analyses of
the field duplicates was likely homogenized by the first phase of crushing that produced the coarse rejects.
Variability appears to diminish in the higher grade ranges.
It is important to note that the majority of duplicate pairs are below potentially mineable grades. Although
the amount of variability between original and duplicate sample assays decreases at higher grades, it is
still present, and it may not be appropriate to evaluate heterogeneity or to determine risk based on results
of the small portion of the data set that is material.
Aside from the bias noted in the field duplicate samples with higher duplicate grades relative to original
assays, these data suggest that sampling and subsampling protocols are adequate.
12.2.4 Blanks
The QA/QC data set for the Red Eagle Mining drilling includes 320 analyses of blank pulps for SR-001 to
SR-139 and 173 analyses for the remainder of the drilling that were included in sample shipments. A total
of four certified blanks were purchased by Red Eagle Mining for insertion in both drilling programs.
Results of the analyses are presented in Figure 12.7 and Figure 12.8. Because these samples are pulps,
they are considered “analytical” blanks and are essentially standards with values of “0.” No coarse blanks,
which would also test for contamination during the sample preparation, were included in the QA/QC
program. MDA recommends that Red Eagle Mining submit coarse blanks in the sample stream,
preferably after mineralized samples, in future drilling programs.
Page 12.14
AMENDED Figure TECHNICAL

12.7
NI 43-101 REPORT
Gold in Pulp Blanks vs. Preceding Sample (SR-001 to SR-139)
Figure 12.8 Gold in Pulp Blanks vs. Preceding Sample (SR-140 to SR-233)
Page 12.15
In Figure 12.7
and Figure REPORT
12.8, gold in the blank pulp sample is plotted on the vertical axis versus gold in
the immediately preceding sample, plotted on the horizontal axis. MDA has used a line arbitrarily set at
five times the detection limit to designate “failures” in Figure 12.7 and Figure 12.8. No tendency for in-lab
analytical contamination is suggested by the two plots. However, since no coarse blanks were used,
contamination during sample preparation has not been tested, which decreases the level of confidence in
the assays.
12.2.5 Check Assays
For the initial resource estimate, a total of 169 pulp check samples, originally analyzed by Acme, were
submitted to SGS del Perú, S.A.C. in Lima, in order to test the analytical accuracy of Acme’s assays. Of
these, 20 did not match sample numbers in the drill-hole database and were not included in the check-
assay evaluation. Two of the remaining 149 samples were pulps from field duplicates and are included in
the evaluation. No pulp standards or blanks were submitted with the pulp checks.
Figure 12.9 plots the relative differences between the original Acme assays and the SGS pulp check
assays versus the mean of sample pairs. The red line is a 20-sample-pair moving average. Positive
relative difference values (above the “0” line) indicate that the SGS pulp check assay is greater than the
Acme original assay.
Figure 12.9 Relative Percent Differences for Pulp Check Assays (SR-001 to SR-139)
Page 12.16
Fourteen outlier
AMENDED TECHNICAL
sample
NI 43-101 pairs, or REPORT
~10% of the pulp checks, were removed from the chart in Figure 12.9.
Even without these outliers, there is a significant amount of variability between Acme and SGS assays.
Visual inspection of the data points indicates a significant bias up to a mean grade of the pairs of ~0.4g
Au/t, indicating the original Acme assays are higher relative to the SGS checks in this range. Above ~0.4g
Au/t, there is no definitive bias. The low-grade bias is reflected in the means of the analyses of the two
laboratories (Table 12.6), but that bias is at grades generally below economic cut-off. Table 12.7 shows
the descriptive statistics of the data at means of the pairs greater than 0.4g Au/t.
Table 12.6 Comparison of Means for Pulp Check Assays, Mean of Pairs = 0.01 to 0.4g Au/t
(SR-001 to SR-139)
Mean 0.01 to 0.4 Mean Original Duplicate Diff. Rel. Diff. A.V. Rel. Diff.
Count 29 29 29 29 29
Mean 0.194 0.228 0.160 -30% -69% 82%
Median 0.176 0.205 0.140 -32%
Std. Dev. 0.081 0.098 0.088
CV 0.416 0.429 0.549
Min. 0.105 0.088 0.064 -27% -469% 0%
Max. 0.403 0.415 0.390 -6% 110% 469%
Table 12.7 Comparison of Means for Pulp Check Assays, Mean >0.4g Au/t
(SR-001 to SR-139)
Mean >0.4 Mean Original Duplicate Diff. Rel. Diff. A.V. Rel. Diff.
Count 47 47 47 47 47
Mean 5.948 5.930 5.964 1% 6% 53%
Median 2.870 2.191 2.692 23%
Std. Dev. 7.024 7.140 7.125
CV 1.181 1.204 1.195
Min. 0.403 0.206 0.390 89% -268% 1%
Max. 28.310 27.220 29.400 8% 382% 382%
Since no standards were submitted to SGS with the sample pulps, the accuracy of the check assays
cannot be evaluated, and there is no way to determine which laboratory is returning the more accurate
data. However, the original samples sent to Acme had standards inserted in the sample stream and
those, on the basis of those standards, were determined to be reliable. It should be noted that analyses of
standards assays did also indicate a slight positive bias of Acme assays overall. The high bias of Acme
original assays relative to the pulp checks is apparent up to ~0.4g Au/t. The lack of bias above this grade
is encouraging, although there is a risk that potentially mineable blocks in the resource may be influenced
by the possible bias in the lower-grade samples.
Page 12.17
Resource Update
AMENDED NI TECHNICAL
43-101(SR-140 REPORT
to SR-233)
Since the original estimate and QA/QC analyses, 131 pulp check samples, originally analyzed by Acme,
were submitted to ALS Colombia in Medellín, in order to test the analytical accuracy of Acme’s assays.
Pulp standards, duplicates, and blanks were submitted with the pulp checks. MDA evaluated the results
of the QA/QC data and confirmed that there were no standard or blank failures and that the duplicate pair
assays were within reasonable limits. Figure 12.10 plots the relative differences between the original
Acme assays and the ALS pulp check assays versus the mean of sample pairs.
Figure 12.10 Relative Percent Differences for Pulp Check Assays (SR-140 to SR-233)
Four outlier sample pairs were removed from the chart in Figure 12.10. Some variability between Acme
and ALS assays is indicated; the absolute value of the relative differences is 16% for all data (Table 12.8).
By progressively excluding lower-grade pairs, the variability decreases to 10% for assays above 10g Au/t.
There are a numerous individual pair differences that exceed 30% above and below the 0%-line, but the
frequency of these decreases perceptibly above ~7.0 g Au/t. Visual inspection of the data points indicates
little to no definitive bias.
Page 12.18
Table NI
12.8 REPORT
Comparison of Means for Pulp Check Assays, Mean of Pairs > 0.10g Au/t
(SR-140 to SR-233)
All Pairs (>0.10) Mean Original Duplicate Diff. Rel. Diff. A.V. Rel. Diff.
Count 127 127 127 127 127
Mean 9.510 9.507 9.512 0% -2% 16%
Median 4.814 4.526 4.560 1%
Std. Dev. 18.970 18.603 19.378
CV 1.995 1.957 2.037
Min. 0.112 0.123 0.100 -19% -90% 0%
Max. 163.100 157.700 168.500 7% 108% 108%
The extreme variability and bias shown in the check assay data for the initial resource estimate were not
evident in the second set of check assays. This could be due in part to differences between the check
laboratories. The results of both sets of check assay data are indicative of the higher variability and bias
at grades below 0.4g Au/t, and the lower variability with little to no bias at higher grades. This is important,
because the most significant variability occurs at grades at or below ~0.3 g Au/t, and well below the
potential underground cut-off grade of 1.2 g Au/t.
As part of the sample integrity evaluation, MDA examined the relationship between gold grades and core
recoveries. Figure 12.11 is a histogram that plots core recovery in bins of 5% versus gold grade. All
samples are included, regardless of lithology, oxidation state, or degree of weathering. The approximate
average grade of samples at recoveries of 70% or greater is 1.0 g Au/t. However, below 70% recovery,
the gold grade decreases significantly to about 0.4 to 0.6 g Au/t. This may be the result of loss of gold
during core drilling. In soft rocks, such as saprolite with high clay contents, free gold may be washed out
of the sample by circulated drilling fluids and formation water, causing the observed grade decrease in
poor-recovery samples. There is a precedent for this in that the artisanal miners extracted gold from soft
material near the surface. Additionally, free gold or gold associated with sulfide minerals in soft, clayey
gouge in the shear zone could be washed out, resulting in poor recovery and preferential loss of gold in
the sample. If this is the case, the assays, particularly for samples of saprolite or gouge zones with low
recoveries, may be understating the gold grade.
Page 12.19
AMENDED NI 43-101 TECHNICAL REPORT Core Recovery versus Gold Grade

Figure 12.11
San Ramon Recovery vs Gold Grade

1.60 1800
1.40 1600
1.20 1400
1200
1.00
Au (ppm)
Count
1000
0.80
800
0.60
600
0.40 400
0.20 200
0.00 0
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100
Core Recovery (%)
Table 12.9 gives the mean core recoveries for the various lithologic, weathering, and oxide types. The
mean core recovery of ~81% in saprolite/oxidized rock is much lower than that of unweathered and
unoxidized rocks, which ranges from 94% (shear zone) to 98% (outside shear zone). Given the lower
average gold grade for recoveries below 70%, due possibly to loss of gold in heavily weathered, oxidized
and possibly intensely sheared samples, assays associated with the lower recoveries in saprolite and
oxide, and to a lesser extent, in gouge zones, may be understating the gold grade in these rocks.
Table 12.9 Core Recoveries for by Lithologic, Weathering and Oxidation Types
Core Recovery by Lithology, Weathering and Oxidation State

Count Median (%) Mean (%)
All Saprolite 3,207 86.7 80.5
All Saprock 1,472 92.5 87.5
All Oxide 3,869 88.8 81.9
Transition - Shear Zone 210 89.8 86.8
Transition - Country Rock 800 93.3 88.9
Shear Zone - Unweathered, Unoxidized 4,308 96.7 94.0
Schist - Unweathered, Unoxidized 376 99.9 98.1
Mafic Dikes - Unweathered, Unoxidized 229 99.7 96.5
Felsic Dikes - Unweathered, Unoxidized 322 98.1 95.0
Granodiorite - Unweathered, Unoxidized 5,670 99.7 97.3
All Data 17,388 97.6 92.3
Page 12.20
12.3
AMENDEDMDA Independent
NI 43-101 TECHNICAL Verification
REPORT of Drill-Collars
12.3.1 Initial Resource Estimate (SR-001 to SR-139)
During the initial site visit in November of 2012, MDA took GPS readings on 10 drill pads and 15 drill-hole
collars in the field to spot-check coordinates in Red Eagle Mining’s collar table. MDA used a Garmin -
Oregon 550 t non-differential GPS; the device owner’s manual indicates it is accurate to within 10 m.
MDA also recorded GPS measurements taken by the Red Eagle Mining geologist who accompanied MDA
in the field, for comparison.
MDA’s independent collar measurements are intended only as a check of reasonableness against the
collar coordinates in the database. Because Red Eagle Mining was using the older coordinate system at
the time MDA took the measurements, and the collar coordinates in the Red Eagle Mining database are in
the new coordinate system, elevations of MDA’s readings were decreased by 21.67 m. Northings and
eastings were not adjusted, but there is a difference of up to 1.5m between the older and current
coordinate systems. All but one (northing for SR-023) of the northings, eastings, and elevations measured
by MDA compared to the database are within the level of accuracy of the GPS, and all are within 12 m.
This is the case despite the approximated collar locations for SR-019/043 and SR-052 on the drill pads
based on the location of washed material and cuttings on the pads. Also, GPS measurements of
elevations tend to be less accurate in steep terrain where most acquired satellites are more directly
overhead. MDA considers the collar coordinates in Red Eagle Mining’s database to be acceptable based
on the results of the independent GPS checks.
Resource Update (SR-140 to SR-233)
During the second site visit in May 2013, GPS readings were taken on 10 drill sites and 16 new drill-hole
collars in the field to spot check coordinates in Red Eagle Mining’s collar table. MDA used a Garmin
GPSmap® 62s non-differential GPS borrowed from Red Eagle Mining staff; the device’s owner’s manual
indicates it is accurate to within 10 m. MDA recorded the GPS measurements in the field; Red Eagle
Mining’s GIS staff also converted the latitude and longitude easting and northing readings downloaded
from the GPS unit to local coordinate space. Elevation readings did not require conversion to the local
system.
The collar coordinates downloaded from the GPS and converted to local space from latitude and longitude
readings were compared to certified coordinates in Red Eagle Mining’s database provided by the
surveyor. MDA’s independent collar measurements are intended only as a check of reasonableness
against the collar coordinates in Red Eagle Mining’s database. Given the level of accuracy of the GPS
used by MDA, all northings and eastings measured by MDA when compared to Red Eagle Mining’s
database are well within acceptable limits. Only two eastings differed by more than 5m but did not exceed
7.1 m. All measured elevations were consistently high by 9.5 m to 17 m relative to surveyed elevations (in
steep terrain, hand-held GPS elevation readings are generally much less accurate than northing and
easting readings). Also, the eastings recorded in the field directly from the GPS unit were consistently
higher than the converted eastings (which also match the surveyor’s eastings more closely) by 3 m to
4.5 m. The GPS checks confirmed the location of the drill-hole collars in Red Eagle Mining’s database
within reasonable limits.
Page 12.21
12.4
AMENDEDMDA Independent
NI 43-101 TECHNICAL Verification
REPORT of Mineralization
During the initial site visit, MDA collected 15 samples to confirm the presence of gold at the San Ramon
deposit. These samples are not intended to be duplicate samples for grade verification. Check samples
were selected to provide a range of sample grades from mineralized zones; original sample grades range
from 0.5 to 9 g Au/t.
Eight quarter-core samples of sulfide mineralization were taken from four core holes. These were saw cut
by Red Eagle Mining technicians. Since all mineralized core from the oxide program was being consumed
for assay, the only oxide material available for check sampling was coarse rejects from the current drill
program. Two were selected, and since there was no riffle splitter available, these were split by MDA
using the quartering method on a plastic bag. The split was far from perfect but was expected to return
results that were broadly similar to the original. Four channel samples were taken from the Bernadina (1),
Guaguas (1), and San Francisco (2) adits, and one was taken from a road cut on a switchback at the east
end of the San Ramon shear zone; these samples were from oxide mineralization. Confirmation sampling
results are presented in Table 12.10.
Samples were collected by MDA, placed into polyethylene bags, and zip-tied shut. Samples were kept in
the core-logging building and placed into rice bags, which were also zip-tied shut. MDA travelled with the
two sealed rice bags as they were transported to Red Eagle Mining’s Medellín office but was unable to
follow the samples from that point. Red Eagle Mining took possession of the samples and shipped them
to MDA’s office in Reno via DHL Express. Upon arrival, the rice bags had been opened for inspection by
DHL, but the samples remained zip-tied and appeared intact and uncompromised.
The results of the independent check sampling confirm the presence of mineralization in the samples.
The grades are roughly similar to original assays in Red Eagle Mining’s database, but, as expected, there
is some variability. The differences in grades between original and check assays could be an indicator of
the heterogeneity of the gold at the San Ramon deposit.
Page 12.22
AMENDED NITable TECHNICAL

12.10
43-101 REPORT
MDA Confirmation Samples from Core, Outcrop, and Adits
Redox Red Eagle (Acme) MDA (Chemex)

Location Sample Type
Zone Sample Number Au (ppm) Ag (ppm) Sample Number Au (ppm) Ag (ppm)
SR-015 1/4 core Sulfide SR-06784 4.607 7.8 MDA-SR-001 13.85 21.9
SR-073 1/2 split of coarse rejects Oxide SR-04579 0.591 MDA-SR-009 0.789 2.2
SR-080 1/2 split of coarse rejects Oxide SR-04901 3.147 MDA-SR-010 2.95 3.9
Bernadina Adit Channel Oxide 2100-RS-AC- 1.082 MDA-RC-001 0.983 7.1

East Switchback
Roadcut Channel Oxide 2100-RS-TN-057 1.455 1.3 MDA-RC-002 1.235 0.6
Guaguas Adit Channel Oxide 2100-RS-AC-003 0.638 MDA-RC-003 0.334 0.25
San Francisco Adit Channel Oxide 2100-RS-VP-208 1.470 MDA-RC-004 1.465 1.1
12.5 Summary Statement on Data Verification
The QA/QC programs implemented by Red Eagle Mining for all drilling are generally thorough but do have
deficiencies. Despite the short-comings, which are deemed minor and are described elsewhere, the
overall results of the QA/QC programs indicate that the assays are of sufficient quality for use in the
resource estimate. Furthermore, all of MDA’s verification work showed that Red Eagle Mining’s sample
data and database are suitable for use in a Measured/Indicated/Inferred-classified resource estimate.
Page 12.23
13.0
AMENDED NI MINERAL REPORT
43-101 TECHNICAL PROCESSING AND METALLURGICAL TESTING
Most of the metallurgical test work to-date has been completed at two laboratories: Kappes, Cassiday &
Associates (KCA), and McClelland Laboratories, Inc. (MLI). A limited preliminary (sighter) testing program
was undertaken by Acme Metallurgical Limited. As identified throughout the following text, several other
laboratories have performed specialized tests, mainly as subcontractors to MLI or KCA.
These various programs are discussed in chronological order in the following subsections. There are a
few exceptions to this organization. One is a separate subsection that covers the various comminution
studies as a single unit. This follows the subsections on MLI’s work. Standalone sections on the ore and
concentrate mineralogy and the metallurgical QA/QC programs follow the discussion of the comminution
parameters. The section concludes with a summary of the metallurgical results, including risks and
opportunities.
Note: The term “ore” is used in this section with regard to metallurgy and is not intended to imply that a
particular sample could be treated economically.
13.1 Acme Metallurgical Limited Test Work
Initial metallurgical test work on the San Ramon deposit mineralization was conducted by Acme
Metallurgical Limited (“AcmeMet”) in Vancouver, British Columbia between April and September, 2012.
Testing was conducted on four bulk samples that included both oxide and sulfide mineralization from the
San Ramon deposit shear zone (Kwok and Choi, 2012). At this stage of early metallurgical and mineral
resource considerations, oxide and sulfide metallurgical processes were investigated (“sighter’ tests),
including heap leach and CIP/CIL leaching of the potential oxide and sulphide mineral resources. The
following summarizes that testing and is taken from AcmeMet’s report.
Table 13.1 summarizes the head grades for the four samples. The sample identified as “Primary” came
from sulfide and shear-zone mineralization from the underground Hilo Azul workings. The sample
identified as “Sulfide” came from a quartz vein in sulfide and shear-zone mineralization, also from the Hilo
Azul workings. The oxide samples came from existing adits and a roadside shear zone outcrop.
Table 13.1 Head Grades for Metallurgical Samples from San Ramon Shear Zone
(Kwok and Choi, 2012)
Au Ag S As Cu Pb Fe
Sample ID
g/t g/t % ppm ppm ppm %
Primary 0.90 2 0.48 74 55 262 4.48
Oxide #1 7.48 4 0.10 5134 48 184 6.21
Oxide #2 2.43 <2 0.03 1299 74 223 4.30
Sulfide 24.3 38 6.96 316 229 4679 6.68
Page 13.1

PreliminaryNIcyanide REPORT
leaching tests, as simulated by 144-hour bottle-roll tests, showed that the two oxide
samples are amenable to cyanide leaching at 0.50 inch size, and the sample identified as “Sulfide” is
amenable to cyanide leaching at a 75-micron grind size. However, at the coarse 0.50 inch size, the
Sulfide sample was not amenable to leaching. Test results are summarized in Table 13.2. In most cases
gold extraction was continuing when the bottle roll tests were terminated. Thus, the reported figures may
not represent ultimate extractions.
Table 13.2 Summary of Preliminary Cyanide Leaching Tests from San Ramon Samples
(Modified from Kwok and Choi, 2012)
Top Size Au Extraction @ Ca(OH)2 Addition NaCN Consumption

Sample ID
inch/um 144 Hours (%) kg/t kg/t
Primary 0.50 inch 43.4 2.4 0.6
Oxide #1 0.50 inch 85.3 11.7 0.6
Oxide #2 0.50 inch 72.8 10.4 0.4
Sulfide 75* micron 94.6** 3.3 0.4
* 80% passing 75 microns ** Based on 48 hours
As can be seen, the two types of mineralization exhibit the same low cyanide consumptions, but the
oxides have much higher lime requirements than the sulfides.
Throughout the AcmeMet program, reagent consumptions were reasonable. Consumption of sodium
cyanide in the ore leach tests was generally between 0.4 and 0.6 kg/t ore, with a few values slightly lower
or higher. Lime consumption was more variable; it ranged from 1.8 to 3.3 kg/t for the sulfides and about
9 to 12 kg/t for the oxides. Cyanide and lime consumption in the concentrate leach tests were both in the
range of 4 to 6 kg/t.
13.2 Kappes, Cassiday & Associates Test Work
Kappes, Cassiday & Associates (“KCA”) of Reno, Nevada, conducted metallurgical test work on a range
of mineralization types from the San Ramon deposit. This section summarizes the results of that testing,
which commenced in January 2013 and was completed as of August 1, 2013. KCA did not issue a formal
report on their test work, but described test parameters and provided results in the form of log sheets and
spreadsheet compilations. Information presented in this report is drawn from this raw data.
Two main parallel processing routes were tested, whole-ore leaching, and flotation and concentrate
leaching
 whole-ore leaching involved crushing and grinding all ore-grade material, followed by leaching
the entire sample with cyanide in an agitated cyanide circuit; and
Page 13.2
AMENDEDflotation TECHNICAL
and
NI 43-101 concentrateREPORT
leaching involved primary grinding, followed by a rougher flotation step
on the ore. Then the concentrate was reground and leached to recover the gold.
The main difference between the two alternatives is the amount of material that is in contact with cyanide
and must be detoxified. In the whole-ore leach option, 100% of the ore will have to be detoxified and
stored. With the latter approach, most of the material will be uncontaminated flotation tailings, which can
be mixed with the mine waste and dry stacked in a single location. A separate process evaluation was
performed to determine which route is the more attractive.
In addition to the two leach routes that were tested, selected samples were subjected to gravity
concentration on the mill discharge.
13.2.1 Sample Description
KCA’s program was a major expansion of the four-sample preliminary program completed in 2012 by
AcmeMet and described in Section 13.1. The bulk of the KCA testing focused on composites of the oxide,
transition and sulfide mineralization types. The composites are believed to be representative of each
specific type of mineralization as all material was selected by the Red Eagle Mining project geologist on
the basis of head grade, mineralization, and host rock. However, a few individual samples that met these
criteria actually lie in stringers outside the main mineralized trend.
 The oxide composite was made up of assay reject material from 118 intervals (nominal 1 m in
length) drawn from 21 drill holes along the mineralized trend.
 The sulfide composite was prepared by cutting drill core into quarters, and pulling approximately
500 grams of material from each selected interval in the core trays. In all, the sulfide composite
contained material from 202 intervals in 24 drill holes. As the sulfide mineralization made up
about 90 % of the known resource at the time of the study, sulfide variability samples were also
tested. There were six composites included in this part of the program, two from the western
end of the mineralized shear zone and four from the eastern end. Each composite was made up
of core intervals taken from two to six closely spaced drill holes. In all, the six samples included
material from 204 intervals in 25 drill holes.
The transition mineralization is a minor type (< 5% of the known resource). This composite was prepared
by taking material from 12 channel cuts in the San Francisco adit.
In addition to the nine composites described above, two individual samples were included in the test work
program:
 a high-grade sulfide sample from the Hilo Azul adit; and
 a low-grade saprolite ore sample taken from a surface channel.
Page 13.3
The various
NI composites REPORT
used in the KCA test work are generally representative of the major lithological
groups (oxide/saprolite, saprock/transition, sulfide, quartz vein), although spatial representivity varies.
Sulfide mineralization was well represented; spatially, a majority of the samples for the sulfide and variable
sulfide composites were from the eastern half of the deposit, which comprises the bulk (+80%) of the
resource, but a representative number were included from the western part. Samples were taken at a
range of depths to ~350 m below the surface. Samples for the oxide composite were evenly distributed
across the eastern half of the deposit. Access to and availability of transition samples was limited to San
Francisco adit at the west end of the deposit, although, as noted, the material makes up a very small
portion of the deposit. Some of the samples that were collected for the oxide, sulfide, and E1, E2, E4, and
W1 variable sulfide composites (Table 13.3) were taken from mineralized core intercepts that occur in the
hanging-wall and footwall of the primary shear zone. These samples were taken from secondary fault
structures, but generally have the same geologic characteristics as the primary shear zone.
With the exception of the Hilo Azul composite (47.19 g Au/t), the head grades for all composites ranged
from 0.66 to 2.30 g Au/t. These represent potential open-pit grades. The composite grades cover a range
above and below a potential underground mining cut-off grade 2 g Au/t), and further testing on higher-
grade samples is required to represent average underground mineable grades.
13.2.2 Whole-ore Leaching
A total of 37 leach tests was completed, 30 on whole mineralised rock and seven on rougher
concentrates, comprising 16 tests on sulfide material, 10 on oxide samples, eight on transition material,
two on saprolite, and one on Hilo Azul shaft high-grade material.
In the initial series of tests, grind size was a major variable. Tests were conducted on samples where the
P80 varied from 200 microns down to 40 microns. To obtain maximum extraction, the sulfide samples
required a somewhat finer grind than the oxide or transition samples. For direct leaching of the combined
mineralization types, a P80 grind size of 75 microns (200 mesh) appears to be the optimum, as it provides
a good balance between grinding costs, gold recovery, and leach cycle time.
All types of mineralization, including the sulfides, responded well when leached directly. Except for the
transition samples and one variability sample, gold extraction exceeded 90 % in all tests. These results
are summarized in Table 13.3. In the tests listed, the samples were rod milled to a nominal grind size
(P80) of 75 microns. Bottle roll leaching was performed at a cyanide concentration of 1 g/L using sodium
cyanide (NaCN) as the lixiviant. These are all the tests run using the parameters selected for the PEA. A
96-hour leach cycle was used in all tests, although the samples typically reached their maximum
extraction levels in about 24 hours. The rougher concentrate leach tests are not included in this Table and
are discussed as part of the flotation program.
Page 13.4
Table
AMENDED 13.3 TECHNICAL
NI 43-101 ResultsREPORT
of Direct Leaching on All Ore Types and Variability Samples
Calculated Head Reagent Usage

Grade, 96-h Gold
Sample Type
Extraction, % NaCN, kg/t Ca(OH)2, kg/t
g Au/t
Oxide Composite 0.840 95 0.30 3.0
Transition
1.561 87 1.96 3.0
Composite
Sulfide Composite 1.489 92 1.20 1.5
Hilo Azul Sulfide 47.19 96 1.93 1.0
Saprolite 0.554 94 0.22 3.5
E1 Variable Sulfide 1.747 96 4.95 1.0
W1 Variable Sulfide 0.858 86 1.99 1.75
W2 Variable Sulfide 2.295 93 1.56 1.00
Reagent consumption was variable and was determined at the end of the 96-hour leach tests. Most
samples required less than 2 kg of NaCN per tonne (kg/t), with a range from 0.2 to 5 kg/t. The sulfide
variability samples showed something of a geographic trend, with cyanide consumption declining from
5 kg/t at the far east end to 1.5 kg/t at the far west end. Lime consumption was generally low with most
sulfide samples only requiring 1 kg/t. The non-sulfide samples required 3.0 to 3.5 kg/t. This may be due
to the higher calcite levels in the unweathered sulfides.
Due to the significant variability in the NaCN consumption, seven samples were sent to McClelland
Laboratories, Sparks, Nevada for confirmatory QA/QC tests replicating the KCA test conditions (see
Section 13.2.7 below).
13.2.3 Flotation with Concentrate Regrinding and Leaching
Flotation
KCA performed 40 rougher flotation tests, including 17 on various sulfide samples, 11 on the oxide
composite, 10 on the transition composite and one each on the Hilo Azul and saprolite samples.
Initial testing focused on two areas. One was identification of a reagent suite that would provide effective
recovery of gold while minimizing the mass pull required. The other was a grind size study to determine
grinding requirements needed to achieve good gold recovery.
The reagent selection study showed that all ore types could be floated effectively at their natural pH levels.
A combination of copper sulfate at 250 g/t, PAX at 125 g/t and 208 at 5 g/t, together with about 25 g/t of
the frother F-579, was found to give good gold recovery at mass pulls of 5 to 10 % of the ore feed.
Page 13.5
The grind NI
AMENDED size studyTECHNICAL
43-101 showed thatREPORT
grinding the sulfide ores to a P80 finer than 150 microns provided no
observable improvement in gold recovery. However, both the oxide and transition composites showed
modest increases in gold recovery when ground to a P80 of 75 microns. Since the combined oxide and
transition ore types represent less than seven percent of the known resource, the coarser grind appears to
be the optimum for the San Ramon deposit.
A summary of optimum rougher flotation results at nominal grinds of both 150 and 75 microns is provided
in Table 13.4. As might be expected, the sulfides responded to flotation better than the other types of
mineralization. Silver recovery is also shown, although this would not be a major contributor to project
revenue. As can be seen, silver recoveries were generally lower than the corresponding gold recoveries.
Table 13.4 Summary of Optimum Rougher Flotation Results
Actual P80 Grind Size, Mass Pull, % of Percent Recovery

Sample Type
µm Feed Gold Silver
Oxide Composite 163 10.0 60 64
Oxide Composite 82 6.0 76 64
Transition Composite 129 7.9 82 73
Transition Composite 92 9.4 90 78
Hilo Azul 148 32.8 98 96
Saprolite 79 6.9 58 39
Sulfide Composite 153 6.8 98 87
Sulfide Composite 78 8.9 97 88
E1 Sulfide Composite 138 4.5 95 87
W1 Sulfide Composite 200 5.7 88* 86
W2 Sulfide Composite 119 5.2 98 85
* May have been adversely impacted by coarse grind size (200 µm rather than 150 µm).
Concentrate Regrinding and Leaching
Rougher flotation concentrates from all three mineralization types have been subjected to cyanidation for
final gold recovery.
Leach tests were limited to just one transition sample and two oxide samples. These three samples were
floated at a P80 grind size of about 75 µm using the optimum reagent suite. Leaching of these rougher
concentrates was done at a cyanide concentration of 1 g/L NaCN without prior regrinding. Results are
summarized in Table 13.5.
Page 13.6
Six leach tests

AMENDED wereTECHNICAL
NI 43-101 REPORT
run on sulfide rougher concentrates. Two were leached without regrinding. Two
were leached at 1 g/L NaCN after regrinding, and two were leached at 5 g/L NaCN after regrinding.
These results are also included in the table.
It is important to note that the reagent consumptions shown in the table are stated on a per-tonne of
concentrate basis, not a per-tonne of ore basis. At a 10 % mass pull in flotation, the reagent
consumptions shown in the table should be divided by 10 to give the per-tonne of ore values. Reagent
consumptions are those measured after 96 hours at the end of the tests and were lower at shorter leach
times.
Table 13.5 Summary of Concentrate Leach Tests
Cyanide Reagent Consumption kg/t

Calculated Head Grade, Gold Leach
Sample Type Concentration,
g Au/t Extraction % NaCN Ca(OH)2
g/L NaCN
Oxide Composite 15.918 1.0 95 6.15 3.97
Oxide Composite 16.023 1.0 81 4.85 6.69
Transition Composite 18.227 1.0 92 3.32 2.33
1
Sulfide Composite 20.902 1.0 59 4.26 1.18
Sulfide Composite1 22.547 1.0 53 3.65 1.84
2
2
1
No regrind
2
30 minute regrind
3
60 minute regrind
4
120 minute regrind
As can be seen from Table 13.5 the concentrate leach results were erratic. The two oxide trials were
essentially replicates run on rougher concentrates produced from splits taken from the same composite.
Thus, there is no obvious reason for the disparity in the gold extraction and reagent consumption. Unlike
the oxide and transition concentrates, which do not appear to require regrinding, the sulfide concentrates
leached poorly, unless reground. However, the sample with a short regrind and low cyanide concentration
leached as well or better than concentrates ground longer or leached at a higher cyanide level. The
sample with the two-hour regrind essentially represents ultra-fine grinding. While this test yielded the
highest extraction, the cyanide consumption was also far higher than it was in any other test. In
conclusion, when flotation-concentrate leaching is considered in the future, then further concentrate leach
tests will be required to clarify leach performance and establish the optimum leach parameters.
Page 13.7
AMENDEDGravity
Concentration
NI 43-101
A limited program of gravity concentration was conducted on three sulfide composites. One was the
overall sulfide composite used in many of the test work trials. One was a master composite prepared from
the four eastern end of the deposit variability samples, and one was a master composite formed by
combining the two western end variability composites. All three composites were tested using the same
protocol. A nominal 1.0 kg sample was fed to the gravity separation unit. The initial gravity concentrate
was then hand panned to simulate final concentration of the gold by tabling. The tailings from the two
gravity concentration steps were combined and then floated to recover a portion of the remaining gold.
Flotation was done using the optimum conditions previously determined. The resulting rougher
concentrates were then reground for 30 minutes. These were leached at 5 g/L NaCN using a 96-hour
leach cycle. There were no tests that involved direct leaching of the gravity tails.
Gold recoveries for each unit operation, along with the overall recoveries, are summarized in Table 13.6.
The final gravity concentrate represented about 0.5 % of the feed with an average grade of about 100 g
Au/t and 230 g Ag/t. However, the silver recoveries were lower than the gold recoveries when expressed
as a percentage. Direct leaching achieved higher recoveries than the gravity-flotation-leach route.
Table 13.6 Summary of Gold Recovery from Sulfides with Gravity Concentration
Total Gold Total Gold Overall Gold

Gold Recovery in
Sample Recovery in Recovery in Float- Recovery with
Direct Leach, %
Gravity, % Leach, % Gravity, %
East Composite 49 41 91 95.1
West Composite 27 45 72 90.1
Sulfide Composite 27 61 89 91.2
1 Average of all direct leach tests
2 Average of comparable tests at 5 g/L NaCN
13.2.5 McClelland Laboratories, Inc. Confirmatory Test Work
Because of some inconsistent results on reagent consumption at KCA, an initial short, confirmatory, test
work program was undertaken at McClelland Laboratories, Inc. (“MLI”) of Sparks, Nevada. The work was
limited to direct leaching of whole ore using splits from five sulfide composites previously tested at KCA.
The samples were delivered to MLI in August, 2013, and the work was complete in October, 2013. The
following information is taken from various spreadsheets and other sources of raw data, as MLI has never
issued a final report on this portion of the work.
Page 13.8
The samples
AMENDED testedTECHNICAL
NI 43-101 REPORT
included the variability composites E2, E3, E4, and W2, plus the main sulfide
composite. Duplicate tests were performed on the latter to gauge experimental reproducibility. Single
tests were performed on the others due to the limited amount of material available. The MLI bottle-roll
tests replicated the KCA protocol as closely as possible. This included rod-mill grinding of the feed to a
P80 of 75 µm and a 96-hour leach at a nominal cyanide concentration of 1 g/L NaCN and a pH range of
10.5 to 11.0. The only discernible difference in the two sets of tests was in the dissolved oxygen (“DO”)
levels. In the MLI tests, the DO level averaged just over 7 ppm. In the KCA runs, the DO level was
generally below 5 ppm and dropped below 4 ppm on several occasions, necessitating oxygen sparging.
Extraction was very fast in all tests, with leaching essentially complete in just 24 h. An example of the
leach curves for the main sulfide composite is provided in Figure 13.1. This shows the rapid completion of
the leach extraction of gold. The very close agreement for the duplicate runs also demonstrates that the
MLI testing protocol is highly reproducible.
Figure 13.1 Gold Leach Rate Profiles, Bottle Roll Test
San Ramon Master Sulfide 66809 Drill Core Composite,

80%-75µm Feed Size
100
Cumulative Recovery, % of Total
90
80
70
60
50
40
30
20
10
0
0 24 48 72 96 120
Leach Time, hours
Au (Initial) Au (Duplicate)
The comparable gold extractions obtained by MLI and KCA are shown in Table 13.7 while the cyanide
consumptions are compared in Table 13.8. As can be seen, the gold extractions are nearly identical and
average 93.6 %. However, the cyanide consumptions are markedly different. The average value for both
sets of data is 1.47 kg of NaCN. This value was used until additional confirmatory tests resolved the
discrepancy.
Page 13.9
TECHNICALComparable
Table 13.7
AMENDED NI 43-101 REPORT Gold Extractions in the MLI and KCA Tests
Gold Recovery in Direct Leach, %

Composite / Test
MLI KCA Average
Master Sulfide Composite 66809 CY1 91.5 92 91.7
Master Sulfide Composite 66809 CY2 92.1 No Test ---
E2 Sulfide 66850 CY3 94.2 93 93.6
E3 Sulfide 66851 CY4 95.7 96 95.8
E4 Sulfide 66852 CY5 96.1 94 95.0
W2 Sulfide 66854 CY6 93.4 93 93.2
Average All Tests 93.8 93.6 93.6
Table 13.8 Comparable Cyanide Consumptions in the MLI and KCA Tests
Cyanide Consumption, kg/t NaCN

Composite / Test
MLI KCA Average
Master Sulfide Composite 66809 CY1 0.32 1.20 0.76
Master Sulfide Composite 66809 CY2 0.46 No Test ---
E2 Sulfide 66850 CY3 0.66 5.01 2.84
E3 Sulfide 66851 CY4 0.36 3.92 2.14
E4 Sulfide 66852 CY5 0.45 1.95 1.2
W2 Sulfide 66854 CY6 0.48 1.56 1.02
Average All Tests 0.46 2.47 1.47
In addition to determining the overall gold extraction in each test, MLI also conducted tail-screen analyses
on each final leach residue, with gold assays by size fraction. Results are shown in Table 13.9.
Unfortunately, there was insufficient material to run comparable head-screen analyses to determine
extraction by screen fraction. Nonetheless, the results show that the residue assays decline progressively
as the particle size gets finer. Thus, it is likely that extraction increased with decreasing particle size.
Therefore, further testing was undertaken to confirm the optimum grind size for direct leaching of the
sulfides.
Table 13.9 MLI Gold Assays by Size Fraction in the Leach Residues
Size Tailing Assays by Screen Fraction, g/t Au

Fraction, µm 66809 CY-1 66809 CY-2 E2 CY-3 E3 CY-4 E4 CY-5 W2 CY-6
+106 µm 0.230 0.216 0.174 0.213 0.062 0.325
-106+90 µm 0.210 0.185 0.138 0.189 0.060 0.290
-90+75 µm 0.214 0.205 0.211 0.152 0.062 0.213
-75+63 µm 0.181 0.186 0.145 0.204 0.035 0.227
Page 13.10
AMENDED TECHNICAL REPORT

-63+53 µm NI 43-101 0.167 0.161 0.131 0.162 0.048 0.238
-53+45 µm 0.162 0.152 0.114 0.160 0.048 0.199
-45+37 µm 0.145 0.148 0.123 0.118 0.048 0.212
-37 µm 0.047 0.046 0.041 0.047 0.013 0.097
13.2.6 McClelland Laboratories, Inc. Test Work on High Grade Ore
Much of the test work done at KCA and the confirmation tests at MLI was conducted on samples with low
gold grades typical of the open pit operation that was originally anticipated for this project. Subsequent
development indicated than an underground mining operation would be more appropriate and six higher
grade composites (Comp 1 through 6) were prepared to represent the range of expected ore grades.
Work on these new samples started in October 2013 and is approaching final conclusion to a very
successful program.
MLI has completed several programs to date:
 Full composite characterization;
 A limited diagnostic test to determine the effects of dissolved oxygen (DO) levels on gold
extraction and reagent consumption;
 Whole ore leach tests as a function of grind size;
 Two types of gravity concentration, extended gravity recoverable gold (EGRG) and
gravity/cyanidation tests; and
 A combined approach, in which flotation concentrate was reground, then recombined with the
flotation tails for leaching of the combined product.
Work still in progress includes optimizing the regrind size, cyanide neutralization (detox) tests, liquid-solid
separation tests and carbon capacity tests. As the work is ongoing, MLI has yet to issue a final report on
their overall program. Various portions of the program are discussed in the following subsections. The
discussion is based on interim results issued in spreadsheets issued as the work has progressed. These
programs shall continue to completion and will be used during the next detailed engineering and specific
metallurgical testwork stages.
Page 13.11
High Grade
NIComposite REPORT
Preparation
MLI’s most recent program has focused on testing composites that are representative of the higher grades
in the underground-mineable resource. Material from 88 intervals in 52 core holes was combined to
produce six composite samples used for testing. Coarse assay laboratory rejects made up the majority of
the composited materials, although some intact core was also used. All composite head grades exceeded
the potential underground cut-off grade of 2.0 g Au/t. Figure 13.2 shows the location of all drill intervals
with grades exceeding 2.0 g Au/t that were used in the metallurgical composites. These demonstrate the
wide spatial distribution of the samples, particularly in the eastern and central portions of the mineralized
trend that account for the bulk of the minable resource. The figure also includes the 2012 and 2013
samples that are still at or above the current cut-off grade.
Page 13.12
Figure 13.2 The Location of All Drill Intervals with Grades >2 g Au/t Used in the Metallurgical Composites
Page 13.13
All of the 2014

AMENDED metallurgical
NI 43-101 TECHNICALsamples are also unoxidized and unweathered, and are hosted almost
REPORT
entirely in sheared granodiorite. All but 5 of the 88 intervals are from within the main shear zone.
Therefore, with only a few exceptions, the samples that make up the six composites represent the primary
geologic characteristics of the bulk of the mineralization to be mined. Each composite consists of intervals
that are broadly scattered throughout all but the western quarter of the deposit. Therefore, in total, the
central and eastern portions of mineralized material are spatially well represented in each composite.
Since each of the six composites is composed of material from throughout the eastern and central
portions of the deposit, the 2014 samples will not demonstrate any local variability in metallurgical
characteristics. The only variability amongst these six composites is in the head grade, which ranges from
2.7 to 9.6 g Au/t which were selected specifically to cover the anticipated overall ROM grade range that
could be delivered from underground mining. Since the whole ore leach tests on the KCA variability
samples did exhibit a decreasing trend in both recovery and reagent consumption going from east to west,
it may be useful to conduct variability testing on the western area in advance of mining.
Sample Characterization
Chemical characterization of the six composites included head assays (in triplicate) for gold and silver,
multi-element ICP scans, and classical whole-rock analyses. Key assays are summarized in Table 13.10.
These assays represent the lower and upper grade ranges the were expected to be encountered, typically
during mining operations,
Table 13.10 Partial Chemical Composition of the Six Test work Underground Composites
Chemical Analyses
Composite Sulfide S,
Au, g/t Ag, g/t As, g/t Cu, g/t Fe, % Pb, g/t Zn, g/t
%
Comp. 1 2.72 5 92.4 72.3 3.92 415 1,020 1.13
Comp. 2 3.26 7 552 88.7 3.98 456 1,890 1.84
Comp. 3 4.34 10 244 130.0 4.87 729 2,280 2.89
Comp. 4 5.36 10 903 109.5 5.05 664 2,700 3.24
Comp. 5 9.60 17 659 108.0 4.94 1,185 3,640 3.02
Comp. 6 5.29 7 160 99.9 5.0 397 1.880 2.01
During the exploration program, silver assays were not always included, as the main focus was on the
gold. As shown in Figure 13.3 , there is a linear relationship between the gold and silver head assays for
the six composites. This relationship can be used to project the silver grade for any ore sample where the
gold grade is known. For example, at the life-of-mine (LOM) gold grade of 4.57 g Au/t the estimated LOM
silver grade would be 8.48g Ag/t making the ratio of silver to gold 1.85:1.
Page 13.14

Figure 13.3 REPORT
The Gold-Silver Head Grade Relationship
20
18 y = 1.6119x + 1.1155
16 R² = 0.8723
Silver Head Grade, g Ag/t
14
12
10
8
6
4
2
0
0 2 4 6 8 10 12
Gold head Grade, g Au/t
The whole rock analyses show that the makeup of all composites is remarkably similar. Silicon (as SiO2)
makes up 60 to 62 % of the material, probably mostly as quartz, along with feldspar and mica. This is
followed by aluminum (as Al2O3) at 10 to 13 %, mostly in the mica and feldspar. Iron (as Fe2O3) makes
up 6 to 8 % of the composites, mostly as pyrite and pyrrhotite; calcium (as CaO) accounts for about 6 %,
likely there as calcite. Loss on ignition, probably the carbonate in the calcite, also makes up 6 to7 % of
the material.
Dissolved Oxygen (DO) Tests
In both the KCA program and the MLI confirmatory tests, there was some indication that the DO levels
during the direct leach tests were influencing the recovery and reagent consumption. Therefore a short
diagnostic study was undertaken before embarking on the direct leach program with the grade
composites. The sample used in the diagnostic tests was the 66809 (all-in) master composite obtained
from KCA. Four tests were conducted: a closed bottle roll run with no sparging and three mechanically
agitated tests in an open vessel, one with no sparge, one with an air sparge and one with an oxygen
sparge.
Page 13.15
All four tests

AMENDED TECHNICAL
followed
NI 43-101 REPORT This included a nominal 1-kg ore charge with a P80 of 75 µm.
the same protocol.
This was slurried in a nominal 1.5 L of solution to give 40 % solids. After determining the natural pH of the
slurry, 1.5 g of NaCN was added to obtain a concentration of 1.0 g/L. Sufficient hydrated lime was added
to raise the pH to 11.0. Tests were run for a total of 72 hours, with intermediate sampling times of 2, 4, 8,
16, 24, 48, and 72 hours. At each sampling interval a nominal 100 mL sample of solution was withdrawn
and analyzed for NaCN, pH, DO, and gold. If necessary, NaCN or lime was added to bring the
concentration or pH back to the set point. At the end of the test, the slurry was filtered, the filtrate being
the pregnant leach solution (PLS). This was assayed for gold and thiocyanate and also analyzed using an
ICP multi-element scan.
Key results of the four tests are shown in Table 13.11. As can be seen, increasing the DO level had no
discernible effect on gold recovery but did appear to reduce lime consumption. However, cyanide
consumption increased as the available oxygen increased. Based on these tests it appeared that no
sparging was necessary and that agitation alone pulled sufficient air into the slurry to maintain an
adequate DO level.
Table 13.11 Summary of Results of the Dissolved Oxygen Tests
72-Hr. Gold NaCN Lime

Dissolved O2 Level
Test Description Recovery Consumption Consumption
ppm
% kg/t kg/t
Closed Bottle Roll 4.2 93.4 0.27 1.9
Mech. Agitation (no sparge) 3.3 91.4 0.59 2.1
Mech. Agitation (air sparge) 5.2 93.2 1.18 1.6
Mech. Agitation (O2 sparge) 28.2 92.3 1.62 1.3
Whole Ore Leach Tests
The initial program with the underground ore was a continuation of the whole ore leach processing route
undertaken in the confirmatory program. The difference was that the samples used were the underground
composites listed in Table 13.10. The principal process variable in these tests was the crush size, as
determined by the P80 value. Five values (150 µm, 106 µm, 75 µm, 53 µm and 37 µm) were tested for
each composite, except Comp 6, which was only tested at 75 µm. Grind size studies were conducted on
each composite in order to determine the grind times needed to achieve the various P 80 values.
Page 13.16
In all, 30 leach
AMENDED testsTECHNICAL
NI 43-101 were run onREPORT
whole ore samples. The total included three repeat tests and a single
diagnostic test intended to test the benefits of an alkaline aeration pre-treatment. All tests were run using
the same protocol. A nominal 0.5 kg sample (exact weight recorded) was combined with 750 mL of water
(exact volume recorded) to give a slurry with 40 % solids. The natural pH of the slurry was determined.
This ranged from 7.3 to 8.2 for Comps 1 through 5, with most values either 7.8 or 7.9. The natural pH of
Comp 6 was slightly higher at 9.0. At the start of the test sufficient NaCN was added to give a cyanide
concentration of 1.0 g/L NaCN and sufficient lime (as hydrated lime) was added to raise the pH to about
11. Then the slurry was agitated using a bottle roll technique. Agitation was interrupted after 2, 4, 8, 16,
24, and 48 hours to collect intermittent solution samples. The cyanide concentration and pH were also
checked and reagents were added if necessary to re-establish the desired set points. The test was
terminated after 72 hours and the slurry was filtered to obtain the final PLS. The filter cake was double
rinsed. The rinse volumes were measured and any gold and silver in the rinse solutions were included in
the overall mass balance. Once each filter cake was dried, it was weighed and then subjected to a
standard screen size analysis with size fractions ranging from -37 µm to +150 µm. Each of the seven
screen fractions was assayed for both gold and silver.
As shown in Figure 13.4, the tests demonstrated that there is a strong inverse relationship between grind
size and gold extraction. In the figure, each point is the average of the tests run on all composites at the
given particle size. At a P80 of 3 µm, recoveries were in the range of 95 % and were generally
independent of head grade. The corresponding silver recovery averaged about 73 % and was also
independent of head grade.
In spite of the simplicity of the whole ore leach flowsheet and the high recoveries, this approach to ore
treatment has some disadvantages. One is that the entire mine output must be ground to a very fine size,
requiring a multi-stage crushing and grinding circuit and a high power consumption. With a P80 of 37µm,
about 80 % of the material will be sub-sieve, leading to possible difficulties during thickening and filtration.
In addition, the leach kinetics are slow, even at the finest grind. In every case extraction was continuing
when the tests were terminated after 72 hours. With such slow kinetics, agitated leach circuit would
require large tanks and agitators. Finally, the long leach cycle would lead to high cyanide consumption, as
this increased continuously throughout the leach due to ongoing cyanate formation, which will occur after
the gold has been dissolved, but the cyanide ion (HCN-) continues to oxidise to form various cyanates.
Page 13.17
Figure 13.4
AMENDED TECHNICAL
NI 43-101The REPORT
Relationship between Grind Size and Gold Recovery in a 72-Hr. Direct Leach
96
95
94
93
Gold Recovery, %
92
91
90
89 y = -0.0704x + 97.186
88 R² = 0.9977
87
86
0 20 40 60 80 100 120 140 160
P80 Grind Size, µm
In addition to the foregoing problems, parallel mineralogical examination of the San Ramon samples
showed that the ore contained pyrrhotite and other sulfides that are potential oxygen consumers.
Therefore, one test was conducted with an alkaline aeration pre-treatment, which should oxidize these
sulfides, reducing cyanide consumption and possibly increasing recovery. The results were disappointing.
The cyanide consumption did drop by about 15 %, to about 0.82 kg/t ore. However, gold extraction
dropped slightly and lime consumption almost tripled. Therefore, no further consideration was given to
use of an alkaline aeration pre-treatment.
Gravity Concentration
As discussed in Section 13.2.8, the various mineralogical studies clearly demonstrated that the San
Ramon deposit contains some coarse gold with individual particles having at least one dimension in the
range of 50 to up to over 200 µm in size. In addition, tail screen analyses on the direct leach residues
generally exhibited very high gold grades in the coarsest fractions. A typical example is direct leach test
CY-23, which involved Composite 4 ground to a P80 of 53 µm. Key results are shown in Table 13.12.
Page 13.18
NI 43-101 TECHNICAL
Table 13.12
AMENDED Tail ScreenREPORT
Analysis for Direct Leach Test CY-23 (Composite 4 Ground to a
Nominal P80 of 53 µm)
Metal
Weight Assays, g/t
Distribution, %
Size Faction, µm
Cum. Wt.,
Wt., g Gold Silver Gold Silver
%
+150 1.9 0.4 12.50 8.9 9.5 1.2
-150 +106 15.9 3.6 4.49 5.0 27.4 5.2
-106 +75 38.4 11.3 0.87 2.7 12.8 6.8
-75 +53 47.2 20.7 0.84 3.7 15.1 11.4
-53 +45 26.8 26.0 0.57 3.3 5.8 5.7
-45 +37 30.3 32.0 0.53 3.7 6.1 7.3
-37 341 100.0 0.18 2.8 23.3 62.4
Total/Average 501.5 0.52 3.1 100.0 100.0
The results in Table 13.12 show that the actual grind is very close to the target P80, with 79.3 % of the
material passing the 53 µm set point. However, much of the material is quite fine, with 68 % being sub-
sieve. That said, there is strong evidence of coarse gold, as the 20 % of the residue that is + 53 µm
contains 65 % of the gold. The coarsest tail fraction has a grade of 12.5 g Au/t, more than twice the
calculated feed grade of 5.50 g Au/t. From there the grades drop progressively as the particle size
decreases. Silver behaves somewhat differently. Although the two coarsest fractions contain the highest
silver contents, the grades in all finer fractions are about the same. The 68 % of the material that is sub-
sieve contains about 62 % of the silver.
Due to the apparent presence of coarse gold, two different types of gravity test work were conducted.
One was the extended gravity recoverable gold (E-GRG) test. The other was gravity concentration with
cyanidation of the gravity tails.
E-GRG Program
The E-GRG test involves multiple grinds with tail screen analyses after each grinding stage. The initial
sample size was 8 kg crushed to the point where 100 % passed 20 mesh (M) (840 µm) [P80 of 25M
(700 µm]. In Stage 1 the feed was run through the laboratory Knelson gravity concentrator once and the
concentrate photographed, dried and assayed for gold. The tail fraction was dried and 250 g were split
out for a screen analysis. In Stage 2 the remaining tail fraction was ground to a P80 of 60M (250 µm) and
again run through the Knelson concentrator one time. Both fractions were then handled as in Stage 1. For
Stage 3 the remaining tail fraction was ground to a P80 of 200M (74 µm) and processed as in the first two
stages.
Page 13.19
Composites
through REPORTto the E-GRG tests. When analysing these tests, the gravity
5 were subjected
recoveries in each stage are added together and the sum represents the maximum amount of gravity
recoverable gold in the sample. Actual commercial plant performance is usually slightly lower. The
detailed test results can also be used by the manufacturers of centrifugal gravity concentrators to provide
an optimum gravity circuit design. Typical test results for an individual sample (Composite 3) are plotted
in Figure 13.5 and Figure 13.6. Results for all five tests are summarized in Table 13.13 and Figure 13.7.
Figure 13.5 Gravity Recoverable Gold and Silver vs. Grind Size (Composite 3)
100
Cum. Gold Recovery, % of total
90
80
70
60
50
40
30
20
10
0
10 100 1000
Nominal Grind Size, µm
Cum. Au Recovery Cum. Ag Recovery
Page 13.20
43-101 TECHNICAL
AMENDED NI Figure 13.6 REPORT
Gravity Recoverable Gold by Size Fraction (Composite 3)
100%
Cum. Gold Recovery, % of total
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
10 100 1000
Particle Size, µm
Stage 1 Stage 2 Stage 3
Table 13.13 Summary results of the E-GRG Tests for Gold
Gold Recovery vs. P80 Grind Size,

Head Grade, g/t
Composite % of Gold in Feed
700 µm 250 µm 75 µm Total Calc. Assay
Composite 1 15.0 27.7 15.1 57.8 2.49 2.76
Composite 2 10.3 23.6 15.0 48.9 3.41 3.46
Composite 3 19.2 18.5 16.3 54.0 4.49 4.88
Composite 4 16.6 14.5 17.6 48.7 5.18 5.58
Composite 5 10.4 16.8 16.3 43.5 9.78 9.74
Page 13.21

Figure 13.7 REPORT
Total Gravity Recoverable Gold vs. Head Grade
70.0
Combined Gravity Recovery, %
60.0
50.0
40.0 y = 66.361x-0.183
R² = 0.7418
30.0
20.0
10.0
0.0
0.00 2.00 4.00 6.00 8.00 10.00 12.00
Gold Head Grade, g/t
Typically the proportion of gravity recoverable gold increases as the head grade increases. However, the
San Ramon deposit is anomalous in this regard, trending downward as the grades increase. Although not
shown in Table 13.13, silver exhibits the same trend. The gravity recoverable percentage drops from
42.7 % in Composite 1 to just 24.9 % in Composite 5. Based on the trend line in Figure 13.7 gravity
recoverable gold would average less than 50 % life-of-mine.
Gravity / Cyanidation Program
The protocol for the gravity / cyanidation program started by splitting out a separate 5 kg sample of each
of the five grade composites. Each split was stage ground to a P 80 of 65M (225 µm). Then the ground
product was passed through the Knelson concentrator one time. The resulting rougher gravity
concentrate was hand panned to produce a cleaner gravity concentrate, typically weighing less than 10 g.
This was photographed, dried, weighed and assayed in its entirety for gold and silver.
Both the cleaner and rougher gravity tails were separately dried and weighed. The two separate 1 kg
samples were reconstituted using the proper proportion of rougher and cleaner tails. The remaining
rougher tails were blended and splits cut for triplicate gold/silver assays. After regrinding to a P80 of 200M
(75 µm), one of the reconstituted tailings samples was given a direct leach following the leach protocol
given in above, but with an additional sampling time at 36 hours. The second sample was also leached
directly, but there was one additional slight change to the protocol. In the second test, the initial cyanide
concentration was set at 1 g NaCN/L, but no further additions were made at the intermediate sampling
times so that the cyanide concentration was allowed to coast down. The results of both sets of tests are
compared in Table 13.14. The original direct leach results at the same grind size are included in the table
for comparison.
Page 13.22
TECHNICAL
AMENDED NI 43-101 Table 13.14 REPORT
Summary of the Gravity / Cyanidation Tests
Gold Recovery, % of Total Reagent Consumption

Composite Test Type
Gravity Leach Combined NaCN, kg/t Lime, kg/t
Comp. 1 Standard 17.0 75.3 92.2 0.38 2.0
Comp. 1 Coast Down 16.9 77.8 94.7 0.68 1.6
Comp. 1 Direct Ore 91.8 0.74 4.2
Comp. 2 Standard 6.3 86.9 93.2 0.82 1.6
Comp. 2 Coast Down 6.3 86.1 92.4 0.35 1.6
Comp. 3 Standard 12.3 82.5 94.8 0.57 2.2
Comp. 3 Coast Down 12.4 81.8 94.2 0.60 1.9
Comp. 4 Standard 7.4 85.7 93.1 0.78 1.6
Comp. 4 Coast Down 7.3 85.0 92.3 0.45 1.6
Comp. 5 Standard 7.5 84.8 92.4 0.42 1.7
Comp. 5 Coast Down 8.7 83.4 92.1 0.44 1.8
For each composite there is some variability in the recovery in standard 1 g NaCN/L and the coast down
tests. However, this appears to be due simply to experimental variability as the average combined
recovery for all composites is 93.1 % for both types of tests. In addition, there is no apparent relationship
between head grade and combined recovery. On the other hand, there is much more variability in both
the gravity recovery (6.3 to 17.0 %) and the leach recovery (75.3 to 86.9 %). The conclusion is that the
leach will do a good job extracting whatever gold remains in the gravity tails. Although silver recovery is
not shown in Table 13.14, it generally follows the same trends as gold. The average recovery in the
standard test was 70.9 % vs. 71.0 % using the coast down.
While the average combined recoveries are the same for both types of tests, there are some important
differences with respect to reagent consumption. Not surprisingly, the final cyanide concentration was
lower in the coast down tests than in the standard tests. The respective average concentrations were
0.66 g NaCN/L vs. 0.94 g NaCN/L. This favours the coast down approach, as reagent consumption will
be lower in the subsequent detox operation. Furthermore, the actual reagent consumptions were also
lower with the coast down approach. Cyanide consumption was 0.50 kg/t ( and may go lower) with coast
down vs. 0.59 kg/t in the standard test. Lime consumption was 1.7 kg/t when using coast down vs
1.82 kg/t in the standard approach. Thus, the coast down approach would be preferred for plant
operation. In addition, the results suggest that further testing to optimize reagent concentration and
addition practices would be beneficial, as the 1 g NaCN/L appears to be higher than necessary to get
good leach extraction.
Page 13.23
At the same
NI primary grind (P80 of REPORT
75 µm) the gravity / cyanidation route appears to be more effective than
direct leaching. Recovery with the latter was incrementally lower, averaging 92.1 %. Silver recovery was
also lower, averaging 69.8 %. However, as noted above, higher recoveries can be achieved with a finer
grind. Furthermore, reagent consumptions in the direct leach were higher than in either
gravity / cyanidation option. Cyanide consumption in the direct leach was 0.80 kg/t and lime consumption
doubled to 3.5 kg/t.
Flotation-Combined Leach Program
As discussed above, a simple direct leach of finely ground ore was capable of extracting 94 to 95 % of the
gold and 73% of the silver. However, a number of problems were also associated this flowsheet.
Obviously the leach cycle time could be reduced and/or a coarser grind could be used to reduce costs.
However, these changes would likely reduce gold recovery to 91 or 92 %. These are lower than the
recoveries that were obtained by gravity concentration and tailing cyanidation. Therefore, an effort was
made to identify a less costly alternative process that would still give a recovery of at least 95 %. The
alternative selected for testing involves a fairly coarse primary grind; a flotation step focusing on recovery,
rather than grade; and an ultra-fine grind of the concentrate. The reground concentrate is then blended
back into the flotation tails and the combined product is agitation leached.
Due to the limited amount of material remaining in Composites 1 through 5, optimization of the flotation-
combined leach process was done using Composite 6. However, grind studies were conducted on all six
to establish the individual grind times needed to achieve a P 80 of 125 µm for each composite. A P80 of 125
µm was selected upon analysis of KCA flotation work detailed in Table 13.4. When KCA conducted their
study of flotation recovery vs. grind size, they tested sizes that spanned the 125 µm size by using P 80
levels of 150 and 75 µm. Recovery exceeded 95 % at the coarser grind and showed no improvement at
the finer grind. These results suggest that use of a coarser grind than the 125 µm one could reduce
grinding costs without jeopardizing recovery. In addition, it should be noted that recovery to concentrate is
not critical. Any gold that remains in the flotation tails may still be recovered in the combined leach.
A number of trials were run as part of the optimization study. In four of these the concentrate was
recombined with the flotation tails for a whole ore leach. In one of these, the concentrate was not
reground. In the other three, the concentrate was reground for either 4 or 11 minutes, or was lightly
reground to a P80 of 25 µm. An additional one-off test was run with a 4 minute regrind and mercury
deportment was tracked from the initial feed through to the final leach residue and PLS. A second one-off
test was run with a 4 minute regrind and the flotation tails and concentrate were leached separately. A
third one-off test was conducted merely to produce an unground concentrate sample for mineralogical
assessment (See Section 13.2.8).
In all these tests the primary grind was targeted to a P80 of 125 µm. Following the primary grind, 1 kg
charges were floated in four stages using 50 g/t PAX as the collector with a 2 minute conditioning time and
a 30 minute float time. The frother was Flomin F-579 and was added as needed. The tests were run at
the natural pH and 37 % solids. After any regrind, the concentrate was recombined with the flotation tails
and leached using essentially the same protocol as described for the gravity / cyanidation tests. The only
difference was that the tests were terminated after 48 hours, rather than 72. Results of the optimization
tests on composite 6 are summarized in Table 13.15.
Page 13.24
TableTECHNICAL
AMENDED NI 43-101 13.15 REPORT
Results of the Optimization Tests Using Composite 6
Leach Recovery, % Reagent Usage

Mass Pull, Conc.
Test Description NaCN, Lime,
% of Feed Regrind Gold Silver
kg/t kg/t
Combined Leach 11.2 80% -25µm 91.1 70.1 0.22 1.8
Mercury Deportment 10.1 4 min. 94.8 65.7 0.61 1.6
Separate Product Leach 10.5 4 min. 95.1 1
70.0 2 3
0.39 2.04
Combined Leach 9.8 None 86.3 59.4 0.51 1.6
Combined Leach 10.7 4 min. 92.9 66.7 0.42 1.8
Combined Leach 9.7 11 min. 96.0 70.0 0.50 1.6
Note 1. 95.9% recovery from concentrate and 76.9% from float tails for weighted recovery of 95.1%.
Note 2. 74.2% recovery from concentrate and 37.5% from float tails for weighted recovery of 70.0%
Note 3. 2.11 kg/t NaCN for concentrate and 0.19 kg/t for float tails for weighted total of 0.39 kg/t.
Note 4. 4.8 kg/t lime for concentrate and 1.7 kg/t for float tails for weighted total of 2.0 kg/t.
Composite 6 responded very well to flotation. Mass pull to concentrate averaged just over 10 % of the
feed. Assuming an ore processing rate of 1,000 tonnes per day (tpd), only about 100 tpd will be advanced
to the regrind mill. Not all concentrates were assayed, but those that were contained an average of 95.8
% of the gold in the feed at an average assay of 42.7 g Au/t. Silver recovery to concentrate was nearly as
good, averaging 90.7 % of that in the feed. The silver content of the concentrate averaged 57.4 g Ag/t.
The gold recovery during leaching is clearly influenced by the degree of concentrate regrinding. As can
be seen in Table 13.15, gold recovery is only 86 % with no regrind. With just a minimal regrind to 25 µm,
recovery jumps to 91 %. Recovery increases to an average of 94 % with a 4 minute regrind and to 96 %
with the 11 minute regrind. These results are generally in line with the earlier KCA tests, which utilized a
coarser primary grind (P80 of 150 µm). In these tests recoveries were below 60 % with no regrind,
increasing to 94 or 95 % with a 30 minute regrind.
Silver behaves somewhat differently. With no regrind silver recovery is only 59 %. However, recovery
fluctuates in a narrow range between 65 and 70 % with any sort of regrind.
It is not clear what role the regrind plays in enhancing gold recovery. As discussed below (13.2.8) only
about 5 % of the gold is actually encapsulated in pyrite or quartz and would require breakage to expose
the gold to the lixiviant. The remainder of the gold is either fully liberated (30 %) or is partially rimmed or
encapsulated (65 %) and is accessible to the cyanide solution. Thus the main function of the regrinding
may be mainly surface scrubbing or abrasion to remove reagents occluded on the surface or cleaning off
any rims of pyrite of other constituents. This is supported by the particle size distributions shown in Figure
13.8. This shows that there is almost no difference in the particle sizing of the leached tailings with or
without regrinding.
Page 13.25

Figure 13.8 REPORT
Concentrate Particle Size Distributions as a Function of Regrind Conditions
60
Blue - no
50 regrind
Brown - 4 min.
Weight of Screen Fraction, %
40 regrind
Green - 11 min.
30 regrind
20
10
0
0 20 40 60 80 100 120 140
-10
Mid-Point of Screen Fraction, µm
While the regrind appears to have little effect on the particle size distribution, it has a significant impact on
the residue assays as a function of particle size. This is shown in Figure 13.9. As can be seen, the assay
profiles with and without grinding are completely different. Without regrinding, the residue assays drop
progressively as the particle size drops. With both the 4 and 11 minute regrinds, just the opposite occurs.
The assays are lowest for the coarsest material and trend upwards as the particle size decreases. The
higher assays in the coarse fractions explain the lower recovery observed without a regrind.
The recovery with the 11 minute regrind is skewed by the one datum point at 2.5 g Au/t. Unfortunately this
was a very small sample (see Figure 13.9) and there was insufficient material left for another assay. If this
outlier is deleted, recovery at the 11 minute regrind would be even higher and the tail assays would be
lower than with the 4 minute regrind. This supports the decision to use the 11 minute regrind as the
design basis.
Page 13.26
AMENDED Figure TECHNICAL

13.9
NI 43-101 REPORT
Residue Assays by Size Fraction with and without Regrinding
2.5
Test CY-48 w/
Leach Residue Assays, g Au/t
Test CY-46 w/
2 11 min. regrind no regrind
1.5
1
Test CY-47 w/
0.5 4 min. regrind
0
0 20 40 60 80 100 120 140
-0.5
Mid-Point of Screen Fraction, µm
The reagent consumptions listed in Table 13.15 show that the cyanide consumption is generally low,
averaging 0.44 kg/t. However, the consumptions were somewhat erratic and ranged from 0.22 to 0.61 kg
NaCN/t. Lime consumption varied from 1.6 to 1.8 kg/t, except for the tests where the concentrate and
float tails were leached separately. It should be noted that these values are those measured when the
tests were terminated.
Two other results from the tests on Composite 6 deserve some discussion. With regard to the mercury
deportment, the approach was to track the mercury levels throughout the process. This involved running
mercury analyses on the feed, the flotation concentrate and tails, the final leach residue and the final PLS.
The object was to determine if mercury levels in the gold would be high enough to require inclusion of a
mercury retort in the gold doré smelting area. The head grade was 0.72 g Hg/t (ppm). The result was
very positive, as the mercury level in the PLS was just 0.003 ppm, showing that 99+ % of the mercury
reported to the final leach residue. Since the mercury does not follow the gold through the process, a
retort is not warranted.
In one of the tests on Composite 6, the reground rougher concentrate and the flotation tails were leached
separately, rather being combined and then leached. Gold recovery in the separate leach was 95.1 %.
This is within experimental error of the combined leach recoveries and suggests there is no benefit in
using separate leaches.
Page 13.27
The results
AMENDED NI from TECHNICAL
43-101the REPORT
separate leach test also provide some perspective on the leaching both the
concentrate and tailings. With the 4 minute regrind, gold extraction from the concentrate was 96 % vs.
just 77 % from the tails. There was also an order of magnitude difference in cyanide consumption, which
was 2.1 kg NaCN/t for the concentrate and less than 0.2 kg NaCN for the tails.
Based on the optimization studies on Composite 6, it was decided to use the 125 µm primary grind and
the 11 minute concentrate regrind when testing the five grade composites. In addition, no changes were
made to the flotation or combined leach protocols. Two extra tests were included in this part of the
program, one using Composite 3 and the other using Composite 6. In these tests the initial cyanide
concentration was adjusted to the standard set point of 1 g NaCN/L. However, no further cyanide
additions were made and the cyanide concentration was allowed to coast down until the tests were
terminated. Results of all tests with an 11 minute regrind are summarized in Table 13.16.
Table 13.16 Results of the Float-Combined Leach Tests on the Grade Composites
(with 11 min. concentrate regrind)
Leach Recovery, % Gold Head Grade Reagent Usage

Mass Pull,
Sample Calc., Assay, NaCN, Lime,
% of Feed Gold Silver
g Au/t g Au/t kg/t kg/t
Composite 1 13.0 94.8 70.0 2.48 2.70 0.34 1.3
Composite 2 15.9 95.2 65.7 3.57 3.15 0.35 1.5
Composite 3 19.1 95.7 68.8 4.66 4.44 0.36 1.5
Composite 3
18.8 92.1 64.6 4.69 4.44 0.22 1.7
(coast down)
Composite 4 21.1 97.7 69.4 5.14 5.35 0.34 2.2
Composite 5 20.6 98.1 85.3 9.87 9.50 0.45 1.6
Composite 6 19.7 96.0 70.0 5.22 5.32 0.50 1.6
Composite 6
19.7 96.5 63.2 4.92 5.32 0.36 2.0
(coast down)
The key parameter in these tests is the gold recovery. As hypothesized in the PEA, there is a positive
correlation between head grade and recovery. This is shown in Figure 13.10A. As can be seen, there is a
single point well off the trend line, which raises that line by about 0.2 percentage points. Statistically, this
point proved to be an outlier. Figure 13.B shows the head grade-recovery relationship plotted without the
outlier. The resulting trend liner is almost identical to the original one. The main difference is the much
higher degree of correlation (R2 value) without the outlier (removal of which makes the data more
conservative). The standard deviation for the latter is 0.2% and the 95% confidence interval is +/- 0.6%.
It should be noted that this expression just relates to the leach step. It does not take into account the
small post-leach losses due to gold in the tail solution, etc.
Page 13.28
FigureTECHNICAL
AMENDED NI 43-101 13.10A AREPORT
Relationship between Gold Head Grade and Recovery
99
98.5 y = 0.451x + 93.924
R² = 0.7191
98
Gold Recovery, %
97.5
97
96.5
96
95.5
95
94.5
0 2 4 6 8 10 12
Calculated Gold Head Grade, g Au/t
Figure 13.10B Adjusted Relationship between Gold Head Grade and Recovery
98.5
98
y = 0.4519x + 93.628
97.5
R² = 0.9991
Gold Recovery, %
97
96.5
96
95.5
95
94.5
0 2 4 6 8 10 12
Calculated Gold Head Grade, g Au/t
Leach kinetics are not reflected in Table 13.16 or in Figure 13.10A and B. All results shown are final
extraction levels when the tests were terminated after 48 hours. In some cases the extraction reached
completion in 36 hours. However, in about half the tests, extraction was continuing, albeit slowly, when
the tests were terminated.
Page 13.29
Silver recovery
AMENDED doesTECHNICAL
NI 43-101 not show theREPORT
same grade-recovery relationship as gold. The average silver recovery
for the tests is 71.5 %, exclusive of the coast down tests. However, there is again a single very high value,
which is associated with the highest grade sample. Without this, the average drops to 68.8 % and is
clearly independent of head grade. Note that the highest and lowest grade samples have the highest
silver recoveries. The silver recovery dropped to about 64 % in the two coast down tests.
One unexpected aspect of the results presented in Table 13.16 is the generally high mass pull in flotation.
The KCA program suggested a mass pull level of about 10 %; as did the earlier MLI tests (see Table
13.15). However, the KCA value was obtained with low grade samples that are below the current cut-off
grade. With the five higher grade underground samples, the lowest grade sample has a mass pull of
almost 13 % and the mass pulls are above 20 % for the highest grade composites. Such high mass pulls
may represent a risk in the sizing of the tower mill selected for the plant.
Another possible risk arises because the laboratory used a pebble mill with ceramic media to do the
concentrate regrinding. However, a tower mill will be used in the plant. Thus, the laboratory concentrate
grind curves and particle morphology may not replicate the product produced in the plant. As a result, a
new grind curve (grind time vs. particle size) will likely be required for the plant. Reagent consumptions
were generally in line with the optimization tests on Composite 6, with an average cyanide consumption of
0.39 kg/t, exclusive of the coast down tests. Lime consumptions were also similar. Consumptions of both
reagents were lower than in the direct leach tests. As with extractions, the reagent consumptions given
are those at test termination. However, almost all reagent consumptions appeared to stabilize after the
first 16 hours, with virtually no increase after that. Interestingly, the cyanide consumption in the coast
down tests was lower than in the tests at a constant 1 g NaCN/L, averaging just 0.28 g NaCN/L.
Cyanide Destruction Tests
Cyanide destruction (detox) tests using sulfur dioxide (SO2) as the reagent are underway on the final
leach residues. No results are available as of the effective date of this report; however, very conservative
estimates for consumables have been adopted for the operating cost estimate
Liquid / Solid Separation
A series of thickening and filtration tests are being conducted on the detoxified leach residue by Pocock
Industries in Salt Lake City, Utah. No results are available as of the effective date of this report; however,
the results are not expected to affect the design criteria adopted in the Feasibility Study
Carbon Loading Tests
Carbon loading and stripping tests are underway at MLI. No results are available as of the effective date
of this report; however, results are not expected to affect the design criteria adopted in the Feasibility
Study.
Page 13.30

AMENDEDComminution
13.2.7
The initial comminution test work was performed by Phillips Enterprises LLC of Golden, Colorado on a
subcontract basis. When this facility closed due to retirement of the owner, further comminution work was
performed at ALS Metallurgy, Kamloops, British Columbia on a direct contract basis.
Phillips Comminution Tests
The initial comminution tests were run on the six KCA variability samples, the Hilo Azul and saprolite
samples, and a barren granodiorite sample that was not tested metallurgically (Phillips 2013, 2-part letter
reports). Samples were received in two batches, one on January 25, 2013 and the other on April 30, 2013.
Work was completed on May 22, 2013. The resulting rod mill and ball mill Bond work indices and
abrasion indices are summarized in Table 13.17. The work indices are given in kilowatt hours per tonne
(kW-h/t). Further details are available in the referenced reports.
An important caveat regarding these tests is that they were conducted on material that represented the
open pit / underground mining scenario. Except for the high grade Hilo Azul material, all samples have
head grades at or below the underground cut-off grade (2.0 g Au/t). Samples E2 and W3 are at or just
above the cut-off level. The other five samples would be classified as waste in the underground operation.
Thus, these samples may not be closely representative of typical mine output and could be either harder
or softer than the higher grade material.
Table 13.17 Comminution Test Results
Rod Mill Work Index, kW- Ball Mill Work Index, kW-
Sample Abrasion Index
h/t h/t1
Hilo Azul Sulfide 12.03 12.87 0.3345
Granodiorite Waste 15.49 18.32 0.2068
Saprolite 4.01 4.52 0.0010
E1 Variability N/A 15.15 0.1215
W1 Variability N/A 13.56 0.0952
W2 Variability N/A 14.93 0.1635
Note 1. Bond ball mill tests were conducted using a closing screen size of 106 µm.
Exclusive of the saprolite, the ore samples have fairly consistent work indices, with an average ball mill
work index of 14.85 kW-h/t. This value indicates that the ore is of average hardness. The granodiorite
waste is somewhat harder, while the high grade Hilo Azul is softer, probably due to its high sulfide
component. There is a wider range for the abrasion indices. Values below 0.1 indicate rather non-
abrasive material, while values of 0.2 or more are fairly abrasive. As can be seen, the saprolite is very soft
and non-abrasive.
Page 13.31
ALS NI 43-101 TECHNICAL

Comminution
AMENDED Tests REPORT
Two separate comminution programs have been conducted by ALS. One involved the determination of
standard comminution parameters – low impact crushing and ball mill work indices, plus abrasion indices
(Mehrfert, 2014). The other was a SAG mill comminution (SMC) test program (Mehrfert, 2014; Weier,
2014).
The first program involved two different sets of samples. The four samples used for the bond low impact
crushing work index (CWi) determinations are shown in Table 13.24. In these tests, individual pieces of
rock from each sample are tested. The abrasion index (Ai) and ball mill work index (BMWi) were
determined for each of the six underground grade composites previously described (Table 13.18).
Table 13.18 Description of Crusher Work Index Samples
Sample ID Kg No. of Pieces Tested Description

Sample 1 4.5 6 Sericite altered granodiorite wallrock
Sample 2 6.4 10 Low sulfide ore, 1-4% sulfides + quartz, calcite & sericite
Sample 3 6.7 8 Medium sulfide, 4-10% sulfide, mainly quartz, minor
calcite matrix
Sample 4 6.2 7 >10% sulfides, gangue mainly quartz or brecciated
sulfides
The CWi results are summarized in Table 13.19. The abrasion and ball mill work indices are summarized
in Table 13.20. Additional details on both programs are provided in the referenced reports.
Table 13.19 Bond Low Impact Crusher Work Index Results
Crusher Work Index (kW-h/t) Specific

Sample ID
Average Minimum Maximum Std. Deviation Gravity
Sample 1 10.03 1.81 16.35 6.40 2.72

Sample 2 7.77 1.80 24.12 6.55 2.76
Sample 3 8.08 4.56 14.25 3.43 2.84
Sample 4 7.75 4.17 12.63 3.09 2.91
Page 13.32

Table 13.20 REPORT
Bond Ball Mill and Abrasion Index Results
1
Ball Mill Results Abrasion
Sample ID
F802, µm P803, µm Work Index, kW-h/t Indices
Composite 1 2243 83 16.6 0.089

Composite 2 1815 81 15.6 0.047
Composite 3 2117 81 14.6 0.122
Composite 4 2036 81 16.7 0.085
Composite 5 2067 82 14.1 0.041
Note 1. Bond ball mill tests were conducted using a closing screen size of 106 µm.
Note 2. F80 is the screen size that passes 80% of the feed.
Note 3. P80 is the screen size that passes 80% of the ground product.
Standard protocol for the CWi determinations is to break 20 individual pieces. Averaging the results then
gives a reliable result, even though there is typically considerable variation from piece to another. Since
an average of only eight (8) pieces was broken per ore sample, there is some uncertainty in the individual
results. However, in all, 25 pieces of ore were broken and the results were quite consistent for all three.
The average was 7.87kW-h/t, which indicates that the ore is very soft with respect to crushing energy
requirements. The single waste sample appears to have a somewhat higher crushing energy
requirement, as the average CWi is just over 10kW-h/t. This is consistent with the Phillips work, which
showed that the barren material also had a higher milling work index than the ore.
In addition to determining the CWi value for each sample, the specific gravities were also determined. Not
unexpectedly, the specific gravities increased progressively as the sulfide level increased. Because the
comminution tests only affect the physical nature of the samples, and not their chemical make, ALS also
ran head assays on each of the four samples as requested by Red Eagle Mining. Key analyses are
shown in Table 13.21.
Table 13.21 Head Assays on CWi Samples
Sample ID Au, g/t Ag, g/t Fe, % S, % Cu, % Pb, % Zn, % As, %
Sample 1 <0.01 0.7 3.89 0.20 0.017 0.001 0.01 0.002
Sample 2 11.0 25 3.81 3.65 0.009 0.07 0.90 0.028
Sample 3 22.7 37 6.14 8.58 0.042 0.38 3.10 0.255
Sample 4 62.6 91 13.95 >10 0.042 0.83 3.35 4.52
The close agreement of the average CWi values for the three ore samples in spite of the disparity in the
head assays suggests that a CWi value of 8 kW-h/t is a reasonable value for initial crusher design.
However, it should be noted that the head grades of gold-bearing samples are all well above the life-of-
mine average.
Page 13.33
The BMWiNI
AMENDED values TECHNICAL
43-101for REPORT
the five ore-grade composites average 15.5 kW-h/t, but do exhibit a slight negative
correlation with increasing head grade. See Figure 13.11. This trend is consistent with the BMWi of
12.87 kW-h/t for the high-grade Hilo Azul sample. Using the equation for the trend line and the life-of-
mine head grade gives a BMWi value of 15.4 kW-h/t, the same as the average value. This value is also
consistent with the earlier Phillips results.
Five of the six grade composites have Ai values below 0.100, with an average value of 0.0768. Values
below 0.100 are associated with soft, nonabrasive material. The earlier values determined by Phillips on
the six variability samples were slightly harder and more abrasive, with an average Ai value of 0.1216.
The inverse relationship between head grade and the Ai values is consistent with the increased sulfide
levels at higher head grades, as the sulfides should be softer than the host rock.
Figure 13.11 Relationship between Head Grade and BMWi Values
18
16
Ball Mill Work Index, kW-h/t
14
12 y = -0.2697x + 16.885
R² = 0.4014
10
8
6
4
2
0
0 2 4 6 8 10 12
Gold Head Grade, g/t
Six samples were submitted to ALS for the SAG mill comminution (SMC) tests. These were simply
identified as 1 through 6 and were selected to represent stoped material that would be mined
progressively over the life of the operation. Each sample contained approximately 14 kg of material and
consisted of either quarter core or individual fragments that would provide at least 100 pieces suitable for
breakage in the test. No consideration was given to grade, but all material came from intervals with a
potentially workable grade that is likely to go through the mill.
Page 13.34
ALS utilizes
AMENDED NIthe TECHNICAL
JK Tech
43-101 REPORT
proprietary SAG mill design system. With this system ALS stage crushed each
sample and then selected 100 fragments in the 19 x 22.4 mm fraction for breakage. Five sets of 20 were
broken; each set run at a specific energy level using a JK Drop-Weight tester and the broken product was
screened at a specified sieve size. The results were forwarded to JK Tech for full evaluation. JK Tech
determines the Drop-Weight index (DWi), which is a measure of the rock strength under impact
conditions. The breakage parameters A and b were also estimated. The derived product A*b is then
compared to the extensive JK Tech data base to determine the hardness with respect to a SAG mill
operation. The higher the product, the softer the ore. Selected SMC test results are shown in Table 13.22.
The average value of A*b for Samples 1 through 5 is 44.5. This is right in the middle of the JK tech data
base and indicates ore of medium hardness with respect to grinding. Sample 6 is significantly harder,
having hardness greater than about 75% of the samples in the JK Tech data base. The SMC test results
are being used to size the SAG mill.
Table 13.22 Selected SMC Test Results
DWi,
Sample ID 3 A b A*b
kWh/m
Sample 1 5.57 68.0 0.70 47.6
Sample 2 6.46 72.3 0.58 41.9
Sample 3 5.63 59.7 0.81 48.4
Sample 4 6.68 69.1 0.59 40.8
Sample 5 6.36 66.0 0.66 43.6
Sample 6 7.85 73.7 0.47 34.6
13.2.8 Ore and Concentrate Mineralogy
Economic Geology Consulting Studies
A total of five mineralogical studies have been completed as part of the Feasibility Study program.
Economic Geology Consulting (EGC) of Reno, Nevada conducted one study of concentrate produced in
the flotation tests at KCA. ECG also undertook two related studies on slices of drill core. Two additional
studies were performed on samples of concentrate produced in the MLI program on the flotation and
leaching of the underground ore samples. The latter were run by Process Mineralogical Consulting Ltd.
(PMC) of Maple Ridge, British Columbia.
Chronologically, the first three reports were prepared by EGC (EGC January, 2014; February, 2014; and
again February, 2014). These all utilized optical petrographic techniques. The earliest addresses the
mineralogy of four cleaner concentrate samples produced by KCA. Three of the samples (66861 A,
66861 G and 66862 A) were produced from the low-grade master composite 66809, while 66864 A was
produced from the high-grade Hilo Azul composite. Further details regarding the sources of these samples
are given in Section 13.2.1.
Page 13.35
All four samples

AMENDED TECHNICAL
have
NI 43-101 essentiallyREPORT
the same mineralogy, which consists of gold and several sulfides in
varying proportions. Paragenetically the early pyrite is rimmed, veined and replaced with subsequent
mineralization. Each sample is dominated by pyrite, followed by sphalerite and pyrrhotite. There are
lesser amounts of galena and chalcopyrite. Due to the presence of pyrrhotite, all samples are magnetic.
There is a mixture of coarse-grained and fine-grained gold, with particle sizes ranging from >100 µm to
<1 µm. The free gold tends to be finer, but may have been impacted by concentrate regrinding. Gold
encapsulation in pyrite is common, with additional encapsulation in quartz or other sulfides. See
Figure 13.12.
Figure 13.12 Pyrite Grain Cut by Gold (arrow) Veinlet (Credit EGC)
The second EGC report describes a petrographic study of 13 core samples. All are vein samples.
Page 13.36

With one exception (SR-50054), allREPORT
samples have very similar mineralogy and textures. The early pyrite
has been sheared and crushed in multiple events, then cemented by quartz and various sulfides. Late
stage calcite then pushes through the quartz and various sulfides, including pyrite. A typical polished
section is shown in Figure 13.13. The samples contain quartz and pyrite, followed by sphalerite. There
are lesser amounts of galena, chalcopyrite, calcite and sericite. Most samples contain visible gold, often
associated with galena or sphalerite microveinlets cutting through brecciated pyrite. Additional gold
occurs as fine inclusions in pyrite or quartz. SR-50054 is dominantly quartz with fragments or vug filling of
pyrite and sphalerite and does not exhibit any evidence of shearing. Gold occurs in the vugs as
replacement for the pyrite.
Figure 13.13 A Polished Section of Sample SR-50051 Showing Crushed Pyrite Cemented by
Sphalerite, Galena-Gold, Quartz and Late-Stage Carbonate Veinlets (Credit EGC)
Page 13.37
The third EGC

report REPORT
is an extension of the second report. In this part of the study three samples (SR-
2958, SR-15615B and SR-50056) were re-examined in reflected light in an effort to differentiate between
pyrite and arsenopyrite. Arsenopyrite was identified in the latter two samples. It appears to predate the
pyrite and has also been crushed and sheared and cemented together as a breccia. Although the
arsenopyrite does contain some gold, the association is less common than for pyrite or the other sulfides.
(See Figure 13.14).
Figure 13.14 Crushed Arsenopyrite (left)-Pyrite (right) Contact with Gold (arrow) Along the
Contact and Extending Along the Fractures (Credit EGC)
Page 13.38
NI 43-101 TECHNICAL
AMENDEDMineralogy
Process ConsultingREPORT
Studies
Both the PMC studies (Geoff Lane June, 2014 and August, 2014) were made on concentrates produced
from Composite 6, which has an assay head grade of 5.29 g Au/t. See Section 13.2.6 Sample
Characterization for further details on this sample. In a sense, the first study is preliminary as it was
performed on a reject sample. The later report covers an assessment of the entire concentrate output from
a single test. Thus, it provides a more comprehensive assessment of the concentrate sample. This
started with a particle size determination using a cyclosizer at Blue Coast Research Ltd. in Parksville,
British Columbia. Results are shown in Table 13.23.
Page 13.39
NI 43-101 TECHNICAL
Table 13.23
AMENDED REPORTSizing on Unreground Composite 6 Rougher Concentrate
Cyclosizer Particle
Effective Particle Sample Weight1, Gold Assay,

Size Designation Separation Size, Passing Weight, %
µm G g Au/t
CS-1 46.3 0.83 99.26 100.6

CS-2 34.7 3.88 95.78 55.5
CS-3 24.2 14.04 83.21 39.8
CS-4 15.8 9.71 74.52 25.9
CS-5 11.6 14.07 61.92 16.1
CS-5 - 3.3
Note 1. Feed sample weight was 111.7 g.
As can be seen, the concentrate is quite fine, even without a regrind. Over 95 % of the material is sub-
sieve (<400 M) and about 60 % is minus 10 µm. The P80 is just over 20 µm, generally in line with the
concentrate grind study reported above.
For purposes of mineralogy, PMC combined selected cyclosizer products and only evaluated four
samples: CS-1 + CS-2, CS-3, CS-4 + CS-5, and minus CS-5. Polished sections were prepared from each
of the four and systematically scanned using the Tescan Integrated Mineral Analyser (TIMA) Scanning
Electron Microscope equipped with additional semi-quantitative elemental analysis software to measure
grain size and elemental composition. Then a subsequent scan was used to determine gold deportment
and degree of liberation. The main conclusions of the principal PMC study are as follows:
 Overall, the concentrate consists of mica, pyrite, quartz, feldspar and pyroxene, with
lesser calcite, pyrrhotite and chlorite. Pyrite dominates the coarsest size at 68 %,
decreasing progressively to just 5 % in the finest fraction. Mica shows the opposite
trend increasing from 3 % in the coarsest fraction to 34 % in the fines;
 About 95% of the gold is actually present as electrum with an average composition of 57
% gold and 43 % silver. Overall, gold ranges from 83 % down to 29 %. While the
electrum appears to represent all of the gold, the same is not true for the silver. About
half the silver is unaccounted for. As no silver-bearing phases other than electrum were
detected in the TIMA scan, the remaining silver is likely distributed at low concentrations
in various minerals, such as tetrahedrite;
 Overall free grains of gold represent 30 to 35 % of the total. Only about 5 % are actually
fully encapsulated in pyrite or other minerals. The balance is either exposed on or
attached to pyrite or other mineral assemblages; and
 In terms of size distribution, about 83 % of the gold grains are finer than 8 µm.
However, just the opposite is true for mass. About 82 % of the gold weight is in grains
coarser than 8 µm.
Page 13.40
NI 43-101 TECHNICAL
AMENDEDMetallurgical
13.2.9 REPORT
QA/QC Program
A good QA/QC program for the metallurgical test work is just as important as it is in the drilling program. If
metallurgical samples are somehow switched, test results are not reproducible or are biased, or assays
are unreliable, the proper decision may not be made regarding project viability. There were three main
components to both the KCA and MLI metallurgical QA/QC programs:
 The sample tracking system;
 Metallurgical testing protocols; and
 Assay accountability.
Sample Tracking System
All samples delivered to each laboratory are entered into a similar sample-tracking system. The delivery
date, shipping company, and shipment tracking number are recorded. Then a project name is designated
with a unique project number. Each sample is given a unique sample number based on the project
number, then weighed and in most cases photographed. If samples are composited in some way, the
composite is given a new unique number and cross referenced back to the samples that went into the
composite. When a sample is used in some sort of metallurgical test, that test is also given a unique
designation that indicates the type of test, e.g. rougher flotation, whole ore leach, etc. Each test is cross
referenced back to the sample tracking log. The log remains open until the samples are disposed of or
returned to the client.
Metallurgical Testing Protocols
Where there is sufficient sample, an effort is made to conduct at least 10 % of the metallurgical tests in
duplicate. The purpose is to determine the inherent variability in the testing procedure. This must be
small. Otherwise it will be difficult to determine if a change in metallurgical response is due to a change in
a process parameter, such as grind size, or merely experimental variability.
Written instructions are prepared for each test to avoid any confusion by the technicians actually
performing the work. This includes checking all equipment to be sure it is clean and free of material from
previous tests. Probes for pH, Eh, and dissolved oxygen are checked daily and calibrated before each
use. Balances and scales are checked weekly using certified weights and are checked annually by an
outside service provider. As much of the data relate to bench-scale testing, calculated and assay head
grades are compared and tailings are routinely checked to determine if any re-assays are required or if a
test should be rerun.
Page 13.41
Comminution TECHNICAL REPORT

Protocols
AMENDED NI 43-101
The ALS laboratory is ISO 9001:2008 certified and has been since 2001. Annual drop weight tests are
performed as required by JK Tech, to confirm the accuracy of the equipment for the full drop weight and
SMC tests. ALS has prepared internal standard samples to check the calibration of the Bond Ball and
Bond Abrasion mills. These are checked annually. All comminution test equipment is properly maintained
and any variances are addressed immediately. All media loads and balances are checked weekly. All
scales are inspected annually by an external auditor. ALS also participates in regular round robin tests for
the ISA Mill Signature Plot test apparatus, and is certified to conduct these regrinding tests.
No details could be obtained regarding the QA/QC procedures used at Phillips Enterprises. This
laboratory was closed unexpectedly midway through the MLI program and the equipment has been sold to
another laboratory.
Assay Accountability
All the laboratories generally follow similar analytical protocols. The laboratories typically participate in
round robin proficiency test programs to help maintain both analytical accuracy and precision.
Assuming sufficient sample, all assays are run in duplicate or triplicate to ensure that the highest quality
analyses are reported. For the analysis of solutions, duplicate analyses are completed utilizing separate
techniques where possible. In the case of solid samples, MLI periodically submits duplicate pulps and/or
carbon samples to two separate commercial labs for analysis. Typically, around 10 % of the solid
samples are re-submitted for assay to a third party commercial laboratory.
For solids being assayed for gold and silver, the average assay, the standard deviation, and the relative
standard deviation of each assay set are examined, and additional check assays are completed if
required. For duplicate assays, relative standard deviation values of less than 10 % for gold and less than
20 % for silver are expected. Standard deviation results greater than those identified would trigger a re-
assay (if material is available).
Overall reproducibility for a test program is also important, and the average assay, the standard deviation,
and the relative standard deviation for calculated heads from test sets are also examined; tests may be re-
run if a single test deviates significantly from the set average.
Analyses completed in-house are performed utilizing methods and procedures which are standard in the
industry. Assay methods for gold include both a fire assay method with a wet finish as well as a fire assay
method with a gravimetric finish. Silver assays are conducted in a similar manner.
Material for a multi-element analysis is digested using a four-acid digestion. This digestion provides for a
total digestion of the material. Whole-rock analyses are conducted using a lithium metaborate fusion
followed by ICAP-OES analysis. The ICAP-OES units use certified reference solutions for calibration.
ICAP-OES units are maintained by the manufacturing company with preventative maintenance visits
throughout the year.
Page 13.42
Checks of NI
individual REPORT
samples (between 10 and 20 %) are routinely completed on each sample group.
Blanks and certified reference material are utilized throughout the analytical procedures. The blanks,
standards and duplicates are included in each group of samples on a random basis.
Solution assays are made by flame atomic absorption spectrophotometer (“FAAS”) methods using
certified gold and silver standards. Solutions are routinely checked by fire assay methods to confirm the
calibration of the FAAS unit. FAAS units are maintained by the manufacturing company with preventative
maintenance visits throughout the year.
Only reagent-grade chemicals are used in the analytical work.
13.3 Summary of Metallurgical Test Work
Both key metallurgical results and metallurgical risks and opportunities are covered in this section. Each
is additionally covered in a separate section.
13.3.1 Metallurgical Results
The AcmeMet results are of limited value given the small number of grab samples tested and a focus on
different processing options. As with the AcmeMet program, much of the work done at KCA is now of
limited value due to the shift in expected ore grades. Most of the KCA testing was done on samples with
head grades that are now at or below the expected gold cut-off grade of 2.00 g Au/t. Some of the findings
in the KCA program do still relate to the currently planned operation and these are listed below.
 Gold recovery averaged 93 % in whole ore leach tests where the grind had a P80 of 75
µm, consistent with results at AcmeMet and the confirmatory tests conducted at MLI;
 In tests to determine flotation recovery as a function of primary grind size, recovery was
95 to 96 % at a P80 of 150 µm, with some increased loss at 212 µm. Grinding down to a
P80 of 75 µm provided no observable improvement. The implication is that if the ore is
harder than expected and is coarser than the projected grind size, recovery should not
suffer significantly; and
 When leaching the flotation concentrate, KCA only achieved 53 % recovery on unground
material. With a 30 minute regrind, recovery jumped to 94 %. (Note: KCA did not
determine the particle size distribution on the reground material).
MLI is concluding a broad test work program, which is based on the use of several samples that span the
range of expected underground ore grades. Key results from the program are listed below. These are
followed by an identification of risks and opportunities:
 There is a strong linear relationship between the gold and silver head grades, which can
be expressed as Ag head grade = 1.6119 x (Au head grad) + 1.1155. Using this
relationship the average silver head grade is 1.85 times the gold grade;
Page 13.43
 The
whole rock REPORT
analyses show that the makeup of all composites is remarkably similar.
Silicon (as SiO2) makes up 60 to 62 % of the material, probably mostly as quartz, plus
feldspar and mica. This is followed by aluminum (as Al 2O3) at 10 to 13 %, probably in
mica and feldspar. Iron (as Fe2O3) makes up 6 to 8 % of the composites, mostly as
pyrite and pyrrhotite;
 Diagnostic tests were run on a low grade sample to identify the possible need for air or
oxygen sparging to improve extraction. The results showed that such steps were not
necessary for whole ore leaching. However, these tests were not extended to the higher
grade combined leaches. There is some risk that the combined leaches might have
benefitted from an air sparge, as dissolved oxygen (DO) levels dropped below 2 ppm at
various times during these tests;
 Whole ore leach tests showed there was a strong inverse linear correlation between the
P80 grind size and gold extraction, reaching 95% at 37 um. This was independent of
head grade. Silver recovery also increased with decreasing particle size, reaching 73%
at 37 um with no observable dependence on head grade. Cyanide consumption was
erratic, but averaged 1.11 kg NaCN/t;
 Due to the presence of reactive sulfides like pyrrhotite, an alkaline aeration pre-
treatment, was tested to oxidize these sulfides and reduce cyanide consumption.
Results were disappointing. While there was a modest decline in cyanide consumption,
gold recovery also dropped marginally and lime consumption increased significantly;
 Tail residue assays and mineralogical studies indicated the presence of some coarse
gold. As a result two separate gravity programs were conducted;
 E-GRG test results indicate that the maximum gravity recoverable gold ranges from 58%
for the lowest composite grade downward to 43.5% for the highest grade composite.
Such behaviour is anomalous, as the normal trend is for recovery to increase as the
head grade increases; and
 A final gravity concentrate was recovered and the combined gravity tails were leached
after being ground to a P80 of 75 µm. Overall recovery averaged 93%, with an average
cyanide consumption of 0.59 kg NaCN/t.
Optimization tests on a single high grade composite showed that a flotation step at a primary grind at a P 80
of 125, followed by a combined leach on the concentrate and float tails gave the best results. This
confirmed earlier results at KCA, which showed that extraction was poor without a regrind.
In the flotation-combined leach optimization tests an 11 minute regrind achieved 96 % gold recovery. This
regrind time was selected, as it produced lower tail grades than shorter regrinds.
Page 13.44

When REPORT
the optimized float-combined leach tests were run on the grade composites,
recovery was found to be an inverse linear function of the head grade. After deletion of
a statistical outlier, the relationship is Gold Recovery (%) = 0.4519 x Gold Head Grade +
93.628. The standard deviation is 0.2% recovery and the 95% confidence level is 0.6%.
Life of mine recovery would be 96%, exclusive of any post leach losses;
 In the optimized float-combined leach tests silver recovery was independent of head
grade and averaged 68.8 %, exclusive of one statistical outlier and any post-leach
losses;
 A float-combined leach test was conducted to track mercury deportment during

processing. Results showed that virtually all mercury reported to the final leached tails.
The mercury content in the final pregnant leach solution going to gold recovery was just
0.003 ppm;
 The crushing work index for the ore grade samples averaged 8 kW-h/t, indicating soft
ores in terms of crushing. The barren waste was higher at 10 kW-h/t;
 Comminution testing showed that the ball mill grinding index was fairly constant at
approximately 15 kW-h/t over the normal range of ore grades. Barren waste, as might
come from dilution, was over 18 kW-h/t. This material was also moderately abrasive.
Most of the ore grade samples were soft and non-abrasive;
 SMC tests indicated that San Ramon deposit ore is of medium hardness with respect to
grinding. One sample was significantly harder than the other five, indicating some
variability in the ore;
 Petrographic studies on slices of core showed that the early pyrite and arsenopyrite had
been crushed and sheared then cemented back together with later quartz and other
sulfides, all cut through with late stage calcite. The final mineralized material was
therefore highly brecciated;
 Other mineralogical studies showed that most of the gold is present as electrum with an
average content of 57% Au and 43% Ag. This accounts for virtually all of the gold, but
only about half the silver. The remaining silver likely occurs at low levels in tetrahedrite
and other minerals;
 About 30% of the gold is free or liberated and only 5% is fully encapsulated in pyrite or
quartz. The remainder is partially rimmed with sulfide or partial inclusions in other
minerals;
 In terms of particle size, about 80% of the gold particles are < 8 µm. On a mass basis,
about 80% of the gold is present in particles > 8 µm; and
Page 13.45
 In TECHNICAL
AMENDED NI 43-101 REPORT
general, QA/QC lab practices are adequate and consistent with normal industry
practices.
13.3.2 Risks and Opportunities
In addition to the main sulfide composite, KCA ran direct leach tests on six variability samples. Each was
prepared from intervals in closely space drill holes. Geographically these were spread across the shear
zone from the eastern edge of the concession to the western portion of the deposit. Head grades for the
variability samples were low, ranging from 0.8 g Au/t to just above the current cut-off grade. While the
sample grades are not relevant, the fact that the test results showed a clear trend along the mineralized
zone is important. Going from east to west, there was some falloff in gold recovery and a significant drop
in cyanide consumption. The latter dropped from about 5 kg NaCN/t in the east, to just 1.5 kg NaCN/t in
the west. To mitigate the risk of such variations going forward, a new set of east-to-west variability
samples should be prepared from ore-grade material and tested using the flotation-combined leach
approach, as the mining schedule dictates
There is an additional risk associated with the six MLI grade composites. On the one hand all six are
made up of material drawn from throughout the central and eastern areas of the deposit. As such, all six
are highly representative of the life-of-mine material. As a result, any localized variability in metallurgical
characteristics will be masked by the broad makeup of the composites. Furthermore, the western portion
of the deposit is not well represented in these composites. In effect, no variability tests have been run on
the higher grade underground ore. Mitigation would require preparation and testing of higher grade
variability samples.
As part of the gravity / cyanidation program two parallel tests were run on each composite. In one the
cyanide concentration was held at 1 g NaCN/L by periodically adding cyanide as required. In the second,
the initial cyanide content was adjusted to the 1 g NaCN/L, but the cyanide level was allowed to coast
down during the remainder of the tests. Results were encouraging and warrant further consideration.
There was no decrease in recovery, a 15 % drop in cyanide consumption and a drop in the cyanide
concentration going to cyanide destruction. Additional tests should be run to optimize the cyanide dosage
and addition schedule to reduce reagent consumption.
The float-combined leach tests on the six high-grade composites yielded high mass pulls that increased
from 13 to 21 % as the head grades increased. This was a higher range than the 11 % design basis. As
a result there may be an issue with the capacity of the regrind mill in the design. Mineralogy on these
concentrates showed that they contained high levels of mica, quartz, feldspar and pyroxene, which
together undoubtedly accounts for the higher than expected mass pull. Further tests to optimize flotation,
including reagent selection and dosage, may reduce the mass pull by eliminating the high gangue
carryover.
Thickening of tailings slurry, with recycle of the barren solution prior to cyanide destruction, will recover
cyanide and minimize reagent consumption in the detox operation. An evaluation of this option may show
that it is a viable alternative to detoxification of the entire leach residue.
Page 13.46
In conclusion,
AMENDED the project
NI 43-101 is moving
TECHNICAL ahead positively with a combined process that involves the following
REPORT
steps:
 A primary grind to a P80 of 125 microns.
 A rougher flotation step with 95 to 96% recovery of gold to the concentrate.
 Regrinding the concentrate to a P80 of 20 microns.
 Leaching the combined concentrate and flotation tails in a CIL circuit for 48 hours at a
cyanide concentration starting at 1 g NaCN/L.
Life-of-mine, the resulting gold recovery is expected to average 96 %, with 69 % silver recovery. Reagent
consumptions are 0.39 kg/t for cyanide and 1.6 kg/t for lime.
Page 13.47
14.0 REPORT
AMENDED NI 43-101 TECHNICAL MINERAL RESOURCE ESTIMATES
The effective date of the mineral resource estimate is August 5, 2013. Open pit and underground
mineable resources were reported separately in a Technical Report prepared by MDA on September 10,
2013 (Lindholm and Schlitt, 2013b). The current resource estimate on which this Feasibility Study is
based is the same as the one reported in September 2013 but is entirely reported at an underground
mining cut-off grade of 1.2 g Au/t. The current resource estimate also includes a small addition on land
not formerly controlled by Red Eagle Mining.
14.1 Introduction
MDA classifies resources in order of increasing geological and quantitative confidence into Inferred,
Indicated, and Measured categories to be in compliance with the “CIM Definition Standards - For Mineral
Resources and Mineral Reserves” (2014) and therefore Canadian National Instrument 43-101. CIM
mineral resource definitions are given below, with CIM’s explanatory material shown in italics:
14.1.1 Mineral Resource
Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated
and Measured categories. An Inferred Mineral Resource has a lower level of confidence than that applied
to an Indicated Mineral Resource. An Indicated Mineral Resource has a higher level of confidence than
an Inferred Mineral Resource but has a lower level of confidence than a Measured Mineral Resource.
A Mineral Resource is a concentration or occurrence of solid material of economic interest in or on the

Earth’s crust in such form, grade or quality and quantity that there are reasonable prospects for eventual
economic extraction.
The location, quantity, grade or quality, continuity and other geological characteristics of a Mineral
Resource are known, estimated or interpreted from specific geological evidence and knowledge, including
sampling.
Material of economic interest refers to diamonds, natural solid inorganic material, or natural solid fossilized
organic material including base and precious metals, coal, and industrial minerals.
The term Mineral Resource covers mineralization and natural material of intrinsic economic interest which
has been identified and estimated through exploration and sampling and within which Mineral Reserves
may subsequently be defined by the consideration and application of Modifying Factors. The phrase
‘reasonable prospects for eventual economic extraction’ implies a judgment by the Qualified Person in
respect of the technical and economic factors likely to influence the prospect of economic extraction. The
Qualified Person should consider and clearly state the basis for determining that the material has
reasonable prospects for eventual economic extraction. Assumptions should include estimates of cut-off
grade and geological continuity at the selected cut-off, metallurgical recovery, smelter payments,
commodity price or product value, mining and processing method and mining, processing and general and
administrative costs. The Qualified Person should state if the assessment is based on any direct evidence
and testing.
Page 14.1
Interpretation
AMENDED of theTECHNICAL
NI 43-101 word ‘eventual’ in this context may vary depending on the commodity or mineral
REPORT
involved. For example, for some coal, iron, potash deposits and other bulk minerals or commodities, it
may be reasonable to envisage ‘eventual economic extraction’ as covering time periods in excess of 50
years. However, for many gold deposits, application of the concept would normally be restricted to
perhaps 10 to 15 years, and frequently to much shorter periods of time.
14.1.2 Inferred Mineral Resource
An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are
estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to
imply but not verify geological and grade or quality continuity.
An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral
Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of
Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
An Inferred Mineral Resource is based on limited information and sampling gathered through appropriate
sampling techniques from locations such as outcrops, trenches, pits, workings and drill holes. Inferred
Mineral Resources must not be included in the economic analysis, production schedules, or estimated
mine life in publicly disclosed Pre-feasibility or Feasibility Studies, or in the Life of Mine plans and cash
flow models of developed mines. Inferred Mineral Resources can only be used in economic studies as
provided under NI43-101.
There may be circumstances, where appropriate sampling, testing, and other measurements are sufficient
to demonstrate data integrity, geological and grade/quality continuity of a Measured or Indicated Mineral
Resource, however, quality assurance and quality control, or other information may not meet all industry
norms for the disclosure of an Indicated or Measured Mineral Resource. Under these circumstances, it
may be reasonable for the Qualified Person to report an Inferred Mineral Resource if the Qualified Person
has taken steps to verify the information meets the requirements of an Inferred Mineral Resource.
14.1.3 Indicated Mineral Resource
An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality,
densities, shape and physical characteristics are estimated with sufficient confidence to allow the
application of Modifying Factors in sufficient detail to support mine planning and evaluation of the
economic viability of the deposit.
Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing
and is sufficient to assume geological and grade or quality continuity between points of observation.
An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured Mineral
Resource and may only be converted to a Probable Mineral Reserve.
Page 14.2
Mineralization
AMENDED may TECHNICAL
NI 43-101 be classified REPORT
as an Indicated Mineral Resource by the Qualified Person when the
nature, quality, quantity and distribution of data are such as to allow confident interpretation of the
geological framework and to reasonably assume the continuity of mineralization. The Qualified Person
must recognize the importance of the Indicated Mineral Resource category to the advancement of the
feasibility of the project. An Indicated Mineral Resource estimate is of sufficient quality to support a Pre-
feasibility Study which can serve as the basis for major development decisions.
14.1.4 Measured Mineral Resource
A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality,
densities, shape, and physical characteristics are estimated with confidence sufficient to allow the
application of Modifying Factors to support detailed mine planning and final evaluation of the economic
viability of the deposit.
Geological evidence is derived from detailed and reliable exploration, sampling and testing and is
sufficient to confirm geological and grade or quality continuity between points of observation.
A Measured Mineral Resource has a higher level of confidence than that applying to either an Indicated
Mineral Resource or an Inferred Mineral Resource. It may be converted to a Proven Mineral Reserve or to
a Probable Mineral Reserve.
Mineralization or other natural material of economic interest may be classified as a Measured Mineral
Resource by the Qualified Person when the nature, quality, quantity and distribution of data are such that
the tonnage and grade or quality of the mineralization can be estimated to within close limits and that
variation from the estimate would not significantly affect potential economic viability of the deposit. This
category requires a high level of confidence in, and understanding of, the geology and controls of the
mineral deposit.
14.1.5 Modifying Factors
Modifying Factors are considerations used to convert Mineral Resources to Mineral Reserves. These
include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing,
legal, environmental, social and governmental factors.
MDA reports resources at cut-offs that are reasonable for deposits of this nature given anticipated mining
methods and plant processing costs, while also considering economic conditions, because of the
regulatory requirements that a resource exists “in such form and quantity and of such a grade or quality
that it has reasonable prospects for economic extraction.”
Page 14.3
14.2
AMENDEDDatabase
The initial resource estimate for the San Ramon deposit (Lindholm and Schlitt, 2013a) utilized a database
with an effective date of November 21, 2012. Red Eagle Mining had completed 143 drill holes (SR-001 to
139, SR-028A, SR-032A, SR-045A and SR-050A) for a total of 23,015.25m of core in the San Ramon
deposit area. The San Ramon deposit database contained 11,844 records, of which 11,665 had gold
assays. Other elements, including silver, base metals, and trace elements, were assayed in SR-001 to
065. The database also contained logged lithology and recovery data, summarized redox data, and bulk
wet-density and specific gravity measurements. All of these drilling data were used in the initial estimate.
From November of 2012 through May 2013, Red Eagle Mining completed an additional 95 drill holes
(SR-140 to SR-233, SR-146B) for a total of 22,593.75 m of core. Of these, 76 were infill drill holes within
the previous resource area, and three were exploration holes drilled north of the San Ramon deposit
shear zone. Twelve holes extended mineralization down-dip within the shear zone, and four extended
mineralization to the west. Red Eagle Mining supplied the data for the new drilling to MDA on June 5,
2013, which is the effective date of the database for the updated resource estimate. The new collar,
survey, and assay data were audited and appended to the previously audited database. As noted in
Section 12.1.2, additional down-hole survey certificates were provided by Red Eagle Mining and were
used by MDA to audit some of the older survey data, which were modified as needed; none of the
previous collar and assay data were changed. Table 14.1 summarizes the data in the updated San
Ramon deposit database, which contains 19,938 records, of which 17,286 have gold assays. Only gold
was analyzed for the new drilling program. The other 2,652 records include blank records that are
automatically added by database software to indicate drill-hole gaps and intervals added for specific
gravity data. Red Eagle Mining also provided geological and geotechnical data for all drilling, including
major and minor lithologies, alteration, weathering, oxidation, structure, density, recovery, RQD and
hardness. Much of this information came from re-logging from core photos in an effort to standardize
geologic interpretations.
Page 14.4
AMENDED NITable TECHNICAL

43-10114.1 REPORT and Resource Database Descriptive Statistics
Exploration
Valid N Median Mean Std.Dev. CV Minimum Maximum Units

Length 19,938 1.00 2.29 0.01 205.35 m
Au 17,286 0.01 0.31 2.59 8.37 0.0025 157.70 g/t
Specific Gravity 932 2.61 2.32 0.53 0.23 0.97 3.45
14.3 Underground Workings
For the initial resource estimate, Red Eagle Mining provided MDA with digital outlines of 14 underground
workings in the San Ramon deposit. With average floor-to-back heights and floor elevations, MDA
constructed solids of the adits and shafts. These were used to code the block model by assigning
percentages of mined material to individual blocks, from which mined tonnes was calculated. The mined
tonnes were subtracted from the resource on a block-by-block basis. Red Eagle Mining is continually
discovering new underground workings, which are rehabilitated to the extent practical and sampled if they
intersect the shear zone. Although the total volume of mined material is likely very small, there is certainly
some unknown quantity of the resource that has already been mined, which is not taken into account in
the reported estimate.
14.4 Mineral Domains
Low- and higher-grade gold domains were modelled on north-south, 50m-spaced cross sections for the
resource at the San Ramon deposit. The lower boundary of the low-grade domain, which represents
mineralization in weak to moderately sheared rock that contains scattered small quartz veins, is at ~0.05 g
Au/t. The grade break between the low- and higher-grade domains is gradational between 0.35 and 0.6 g
Au/t. The higher-grade domain (>~0.6 g Au/t, but may contain grades down to 0.35 g Au/t) represents
zones of strong shearing that variably contain relatively thick quartz veins (less than 2 m) with coarse-
grained sulfides (sphalerite, pyrite, and galena), coarse-grained sulfide veins, finer-grained sulfide
minerals and quartz vein fragments in gouge zones, and sericite. The domains, and the primary shear
zone, strike roughly east-west and dip to the north at around 70° to near-vertical. At depths below an
elevation of approximately 2,100 m, the dip shallows to 50° to 60°. Figure 14.1 and Figure 14.2 show
these domains.
A quantile plot of coded higher-grade domain samples indicates the higher-grade domain is trimodal, with
one relatively sharp grade break at ~1.0 and another gradational break between 5.0 and 9.0 g Au/t. The
grade change at ~1.00 g Au/t is not abrupt, and no geological characteristics that would distinguish rock
above and below ~1.0 g Au/t were observed. Therefore the modelling did not separate these samples into
distinct domains. This is not considered a risk.
Page 14.5
Above ~5.0
AMENDED Au/t, TECHNICAL
NIg43-101 the samples REPORT
commonly consist of quartz veins with coarse-grained sulfides. Gold
grade appears to increase with increasing content of sulfide minerals, and galena, abundant coarse-
grained sphalerite, and massive pyrite are generally associated with extremely high grades. Samples with
grades above ~5 g Au/t constitute only ~15 % of the higher-grade domain, but they are geologically
distinct and are treated during estimation as a sub-domain within the higher-grade domain. It was
observed that only about one third of samples with grades above ~5.0 g Au/t had similarly high-grade
samples from different drill holes at distances greater than 50 m. Consequently, at the existing 50 m drill-
hole spacing, the above ~5.0 g Au/t sub-domain within the higher-grade domain cannot, for the most part,
be modelled separately.
Like all deposits with distinct highest-grade populations whose continuity is generally less than existing
drill spacing, there is an added risk. This risk at the San Ramon deposit was lessened, if not removed, by
using estimation search restrictions above 9.0 g Au/t. To illustrate, about 8% of the metal at the 2.0 g Au/t
cut-off was lost between the 2012 estimate (Lindholm and Schlitt, 2013a) with drill spacing of ~100 m and
the 2013 estimate (Lindholm and Schlitt, 2013b) with drill spacing of ~50m. MDA expects that since the
drill spacing is approaching the average continuity of the highest-grade vein sub-domain, that the risk of
further losses is greatly diminished, and the magnitude of the losses, if they occur at all, would be
substantially less than 8%. Because the highest-grade mineralization occurs in zones less than 50 m, any
model from the current drill spacing will likely be a poor predictor of the location of the highest-grades,
although the overall estimated metal content is reasonable.
To further characterize the highest-grade mineralization, MDA identified a total of 98 sample intervals
within the modelled deposit. Core photos for 45 of these were examined, and various geological criteria
were summarized. Veins, sulfide minerals, and breccia make up ~50% of the total length of the samples.
Angles to core axes of mineralized zones are most commonly 40° to 60°, although structures were
intersected as shallow as 20° and as steep as 80°. Also, and most importantly, the mineralized structures
are sub-parallel to the surrounding shear-zone fabric in nearly all cases. This indicates that the
mineralization is strongly associated with the shear-zone and only infrequently occurs as cross-cutting
features.
Two extremely high-grade intercepts (SR-042, 184 m to 189 m and SR-053, 201.8 m to 211 m) deserve
special attention. Core photos indicate that the quartz and sulfide veins were intersected by these holes
at very shallow angles; in other words, the veins are sub-parallel to the core axis. The true widths of the
high-grade zones are, therefore, much narrower than the 9.2 m and 5 m intercepts, which was accounted
for in the modelling. Also, since the holes were drilled at a relatively high angle to the overall shear zone,
the near-parallel orientation of the veins in core might suggest a secondary orientation of the extreme
high-grade mineralization. However, core photos also show that the holes are sub-parallel to the
surrounding shear zone fabric, which may indicate that there is a local bend in the structure that hosts the
veins. These bends and associated very high-grade mineralization are likely localized and could easily be
missed at 50 m, or even tighter, drill-spacing. There is an unquantifiable potential to encounter similar
high-grade zones during mining that were not located by drilling.
Page 14.6
The continuity
of modelled REPORT
individual zones within the higher-grade domain and the geologic and mineral
domain models, in general, were tested with the recent 50 m-spacing infill drilling program. The location
and presence of the shear zone and low-grade domain were confirmed within reasonable limits. In a
majority of cases, the location and presence of individual zones within the higher-grade domain were
validated as well, in the sense that strong shear zones with samples that assayed above ~0.6 to ~1 g Au/t
were intersected in the approximate locations indicated by the previous model. In fact, the continuity at
the underground resource cut-off and even potential underground mining cut-off grades is 100s of meters,
well beyond the existing drill density. In short, the model is a good predictor of the modelled domains.
Although there is some silver associated with gold in the San Ramon deposit, it was only analysed in the
first 65 holes drilled on the property. Therefore, it was not modelled, and is not included in the resource.
Page 14.7
TECHNICAL
Figure
AMENDED NI 43-101 Gold Domains and Geology – Section 856500E
14.1 REPORT
shear zone
saprolite boundary saprock boundary
top of sulfide
SAN FRANCISCO ADIT
T
bottom of oxide
UL
FA
IN
VE
LD
GO
FAULT
drill hole assays

(Aucap)
< 0.001
>= 0.001
>= 0.040
>= 0.050
>= 0.100
>= 0.250
>= 0.350
>= 0.600
>= 2.000
>= 3.500
>= 5.000
>= 8.000
>= 30.000
Lithology:
Shear Zone
Gold Domains:
low grade
high grade
MINE DEVELOPMENT
Reno
ASSOCIATES Nevada
Red Eagle Mining
San Ramon Project
Gold Domains Section 856500 E
DATE 6 Aug 2013
SCALE as shown
Page 14.8
TECHNICAL
Figure
AMENDED NI 43-101 Gold Domains and Geology – Section 857700E
14.2 REPORT
saprolite boundary
saprock boundary
top of sulfide
bottom of oxide
drill hole assays

(Aucap)
< 0.001
>= 0.001
>= 0.040
>= 0.050
>= 0.100
>= 0.250
>= 0.350
>= 0.600
>= 2.000
>= 3.500
>= 5.000
>= 8.000
>= 30.000
Lithology:
Shear Zone
Gold Domains:
low grade
high grade
MINE DEVELOPMENT
Reno
ASSOCIATES Nevada
Red Eagle Mining
San Ramon Project
Gold Domains Section 857700 E
DATE 6 Aug 2013
SCALE as shown
Page 14.9
14.5
AMENDEDDensity
In the early drilling programs (SR-001 to SR-139), Red Eagle Mining regularly measured core samples for
bulk wet densities at in-situ moisture conditions. At the request of MDA, Red Eagle Mining also measured
64 samples for bulk specific gravities for use in the initial estimate; these were taken from core holes
SR-001 to SR-010 and SR-059. The immersion method was used to obtain both sets of values. Wet-
density samples were wrapped in cellophane, and the weight of the displaced water determined for
calculations. Oven-dried bulk specific gravity samples were also wrapped in cellophane, but the weight of
the dry sample suspended in water was used for calculations per standard testing procedures for specific
gravity determination.
Frequent wet-density measurements were obtained for new drill holes SR-140 to SR-155. Starting with
drill hole SR-157 and continuing to the end of the 2013 program, 862 dry densities were measured, which
provided a total of 926 bulk specific gravity/dry-density values for use in the current estimate. The dry-
density procedure was identical to the immersion method used for wet-density determination, except an
oven-dried sample was tested. Proper drying times for various sample types, including saprolite, were
determined by weighing test samples every hour until a constant weight was achieved.
The combined specific gravity/dry-density data were evaluated in terms of lithology (shear zone, granite
country rock, dikes), redox (oxide, mixed, or sulfide) and saprolite. Table 14.2 summarizes density
measurements and the values applied to the model. Each data set represented in the table (i.e. All
Saprolite) was evaluated individually, and up to seven relatively extreme outliers (nearly all low) were
removed from each.
Table 14.2 Density Measurements and Values Applied to the Block Model
No. of % Applied
Rock Unit Range Mean
Samples Adjustment SG
All Saprolite 229* 1.22-2.39 1.55 0% 1.55
All Saprock 92* 1.21-2.84 2.14 0% 2.14
All Oxide 259 1.21-2.70 1.60 0% 1.60
Transitional Redox – Shear Zone 3 1.83-2.77 2.41 1% 2.38
Transitional Redox – Country Rock 75 2.52-2.75 2.26 0% 2.26
Unoxidized – Shear Zone 152 2.23-3.45 2.68 1% 2.66
Unoxidized – Schist 17 2.52-2.98 2.75 0% 2.75
Unoxidized – All Other Lithologies 414 2.16-2.91 2.67 0% 2.67
All Data 932** 1.21-3.45 2.32 0% 2.32
* Saprolite and saprock values overlap with redox and lithology types
** No outliers removed
Page 14.10
The specific
NI gravity / dry-density REPORT
data are sufficiently representative of the various lithology, redox, and
weathering types in the deposit, both in terms of quantity and spatial distribution. The only exception is
the transitional redox within the shear zone; however, this material makes up a very small portion of the
overall volume in the block model. The shear zone mean density values were adjusted down by one
percent, due to: 1) slightly lower core recoveries in the shear zone (generally by 2-4%), and 2) the
predominance of fractured and broken core, which is difficult to measure for specific gravity, thereby
instilling a sample selection bias against broken (lower density) samples.
14.6 Sample and Composites Descriptive Statistics
Once the domains were defined, the north-south sectional interpretations were used to code drill-hole
samples. Also, all samples outside modelled low- and higher-grade domains were assigned to a unique
domain for statistical and estimation purposes. Quantile plots were made; outlier grades were reviewed
on screen; and descriptive statistics were completed (Table 14.3). Samples from within each of the two
domains, as well as for assays outside modelled mineral domains, were capped. It is noteworthy that the
coefficients of variation (“CV”), in spite of apparently low capping grades, remain high (1.77 and 2.10 for
the low- and higher-grade domains, respectively). As noted earlier, the higher-grade domain appears to
be trimodal, but continuity that would allow for modelling of the separate highest-grade sub-domain was
not evident as its continuity is less than 50 m on average. There is no geological evidence that would
support modelling separate domains within the low-grade domain. As a consequence, and to compensate
for the shorter continuity, the projection distance of highest-grade assays was limited during the estimation
within each mineral domain.
Page 14.11

Table 14.3 REPORT
Descriptive Statistics of Coded Samples
Gold Domain 51 Low-grade; weak shear zone with quartz veinlets

Length 4,183 1 1.07 0.03 4.5 m

AuPPM 4,164 0.092 0.167 0.406 2.43 0.0025 15.1 g/t
AuCapped 4,164 0.092 0.161 0.285 1.77 0.0025 3.5 g/t
SG 87 2.68 2.65 0.11 0.04 2.25 2.86
Gold Domain 52 Higher-grade; strong shear zone, QV w/coarse-grained sulfides

Valid N Median Mean Std.Dev. CV Minimum Maximum Units
Length 1,225 1 1.01 0 0 0.1 3.96 m

Au 1,220 1.037 3.509 9.253 2.64 0.0025 157.7 g/t
AuCapped 1,220 1.037 3.257 6.848 2.10 0.0025 50 g/t
SG 50 2.72 2.70 0.33 0.12 1.39 3.45
Gold Domain 99 Outside domains

Length 14,530 1 2.75 0.01 205.35 m

Au 11,902 0.007 0.061 0.754 12.27 0.0025 57.3 g/t
AuCapped 11,902 0.007 0.044 0.261 5.89 0.0025 4 g/t
SG 795 2.58 2.27 0.55 0.24 0.97 3.21
QV = quartz veins
Capping for each domain was determined, first, by assessing the grade above which the outliers occur.
Then those outlier grades were reviewed on screen to determine materiality, grade and proximity of the
closest samples, and general location. Caps of 3.5 g Au/t, 50.0 g Au/t and 4.0 g Au/t were applied to the
low-grade, higher-grade, and outside domains, respectively. The cap applied to low-grade domain assays
is lower than capping of assays outside mineral domains; however, the influence of assays outside
domains is greatly restricted during the estimation process. Once the capping was completed, the drill
holes were down-hole composited to 2 m intervals, honouring the domain boundaries. The descriptive
statistics of the composite database are given in Table 14.4.
Page 14.12
TECHNICAL
AMENDED NI 43-101 Table 14.4 REPORT
Descriptive Statistics of Coded Composites
Gold Domain 51 Low-grade; weak shear zone with quartz veinlets

Length 2,566 2 1.73 0 2 m

AUPPM 2,556 0.106 0.167 0.273 1.64 0.0025 7.6 g/t
AUCAP 2,556 0.106 0.161 0.197 1.22 0.0025 3.5 g/t
Gold Domain 52 Higher-grade; strong shear zone, QV w/coarse-grained sulfides

Length 838 1.8 1.47 0 2 m

AUPPM 837 1.200 3.504 7.828 2.23 0.0025 157.7 g/t
AUCAP 837 1.200 3.253 5.706 1.75 0.0025 50 g/t
Gold Domain 99 Outside domains

Length 20,259 0 0.66 0 2 m

AUPPM 7,457 0.009 0.062 0.477 7.75 0.0025 23.5 g/t
AUCAP 7,457 0.009 0.044 0.183 4.12 0.0025 4 g/t
QV = quartz veins
14.7 Estimation
Four estimates were completed: polygonal, nearest neighbour, inverse distance, and kriged. These
estimates were run multiple times in order to evaluate the results and determine sensitivity to estimation
parameters. The inverse distance estimate is the reported estimate. Estimation parameters are given in
Table 14.5.
Two successive estimation passes were run for the low- and higher-grade domains. A first long pass
projecting 300 m along the primary axis in the low-grade domain, and 200 m in the higher-grade domain,
was run to fill in all blocks (all the blocks affected by this long pass were Inferred). This was followed by a
short pass of 100 m in both low- and higher-grade domains. Note that none of the highest-grade sub-
domain material would have been estimated beyond the 100 m pass and therefore does not exist at all in
the Inferred material. The search ellipse is oriented such that the major axis is along an east-west strike,
with a variable semi-major axis in the dip direction. Dips of 85°, 70°, and 55° were used above an
elevation of 2,400 m, between 2,115 m and 2,400 m, and below 2,115 m, respectively, to reflect the
changing orientation of the shear zone and mineralization at various depths.
Page 14.13
Numerous NI
AMENDED test TECHNICAL
cases
43-101 REPORT
of the estimate at various parameters resulted in the selection of the estimation
parameters given in Table 14.5. Modifications made to the initial resource estimation parameters include
addition of multiple search dips for various elevation ranges and application of restriction grades of
0.7 and 9.0 g Au/t to low-grade and higher-grade domains, respectively (changed from 0.4 and 7.0 g Au/t).
Also, the inverse-distance power was increased from third to fourth; anisotropy was narrowed from 3:1 to
4:1; and the maximum number of composites from one drill hole was lowered from three to two for
estimation of higher-grade domains only (these original parameters for the low-grade domain were not
changed).
The highest grades (>5 to 9 g Au/t) at the San Ramon deposit have shown continuity of less than 50 m on
average, so MDA chose to restrict their impact on the estimate by limiting the projection of those high
values. For example, within the higher-grade domain, any composite with a grade over 9.0 g Au/t was
projected only 65 m of the full distance of long and short passes. The 5 to 9 g Au/t limit represents the
approximate lower end of the upper domain of the trimodal population (highest-grade sub-domain, not
modelled) and was chosen based on the quantile plot of the higher-grade domain samples. From the
quantile plot of the low-grade domain, it appears that the upper five percent of values are not part of the
same geological population, so a restriction of 0.7 g Au/t within 65 m for each pass was deemed
necessary. A restriction of 1.0 g Au/t within 10m for each pass was applied to blocks outside modelled
mineral domains.
The block model is not rotated, and the blocks are 2 m north-south by 2.5 m vertical by 2.5 m east-west.
The dimensions were chosen to best reflect possible block sizes for underground mining.
Page 14.14

Table 14.5 Estimation Parameters
Description Parameter
Low-grade Domain
Samples: minimum/maximum/maximum per hole 1 / 12 / 3
Rotation/Dip/Tilt (variogram and searches):
Above elevation 2,400 m 90° / 0° /85°
Elevation 2,115 m to 2,400 m 90° / 0° /70°
Below elevation 2,115 m 90° / 0° /55°
Search (m): major/semi-major/minor (vertical)
Long Pass 300 / 300 / 100
Short Pass 100 / 100/ 33
Inverse distance power 3
High-grade restrictions (grade in g/t and distance in m)
Long Pass 0.7/ 65
Short Pass 0.7 / 65
Anisotropic weighting yes
Higher-grade Domain
Samples: minimum/maximum/maximum per hole 1 / 12 / 2
Rotation/Dip/Tilt (variogram and searches):
Above elevation 2,400 m 90° / 0° /85°
Elevation 2,115 m to 2,400 m 90° / 0° /70°
Below elevation 2,115 m 90° / 0° /55°
Search (m): major/semi-major/minor (vertical)
Long Pass 200 / 200 / 50
Short Pass 100 / 100/ 25
High-grade restrictions (grade in g/t and distance in m)
Long Pass 9.0 / 65
Short Pass 9.0 / 65
Outside Mineral Domains
Samples: minimum / maximum/maximum per hole 1 / 12 / 3
Rotation/Dip/Tilt (variogram and searches): 90° / 0° / 70°
Search (m): major/semi-major/minor (vertical) 100 / 100 / 33
High-grade restrictions (grade in g/t and distance in m) 0.1 / 10
Page 14.15
14.8
AMENDEDMineral
NI 43-101 Resources
TECHNICAL REPORT
MDA classified the San Ramon deposit resources, giving consideration to a combination of distance to the
nearest sample, number of samples and holes, confidence in the underlying database, sample integrity,
analytical precision / reliability, and geologic interpretations. The criteria for resource classification are
given in Table 14.6. The classification of the resource was upgraded primarily on the basis of the
substantial amount of infill drilling, which brought the overall drill-spacing to ~50 m to a depth of about
200 m in the west half of the deposit and to a depth of about 250 m in the east half. Red Eagle Mining
also made significant improvements to their QA/QC program (i.e. real-time analyses and corrections),
collected much more dry-density and geotechnical data that sufficiently characterize all lithologic types,
improved understanding of the geology of the San Ramon deposit, and performed more comprehensive
metallurgical testwork. As a result, a Measured category was added, and the overall quantity of Measured
and Indicated material increased to about 75%. Measured material makes up approximately 20% of total
Measured and Indicated. The discontinuous nature of the highest-grade material and the demonstrated
natural heterogeneity of the gold in the deposit add some risk and decrease confidence in the resource
estimate somewhat. A delineation drilling program is included and discussed in the mining sections of this
Feasibility Study.
Distance parameters for material in intensely weathered rock were made stricter because core recoveries
are on average 17% less in saprolite and 10% in saprock relative to unweathered rock. Also, there is a
demonstrated decrease in grade at recoveries below ~70%, which may suggest a loss of gold in samples
in soft rock. These factors impart a sample bias and loss of confidence in the data for saprolite and
saprock.
Page 14.16

Table 14.6 Classification Criteria
Measured
Inside Domains, in Saprolite,
And
No. of holes / closest distance / avg. distance of all
>=4 / 10m from closest sample / <=40m
samples used
Inside Domains, Below Saprolite,
And
No. of holes / closest distance / avg. distance of all
>=4 / 15m from closest sample / <=60m
samples used
Indicated
Inside Mineralized Domains, in Saprolite,
And
No. of holes / closest distance >=3 / 25m from closest sample
Or
No. of samples / closest distance >=2 / 15m from closest sample
Inside Mineralized Domains, Below Saprolite,
And
No. of holes / closest distance >=3 / 40m from closest sample
Or
No. of samples / closest distance >=2 / 25m from closest sample
Inferred
Inside any mineral domain that is not Indicated
Or
Outside the mineralized domains within 20m of a sample
Table 14.7 and Table 14.8 present the total Measured, Indicated, and Inferred block-diluted resources for
the San Ramon deposit. The initial resource estimate in 2012 (Lindholm and Schlitt, 2013a) was reported
at a single cut-off grade, because nearly all material had the potential to be mined by open-pit methods.
However, the mining scenario has now been determined to be by underground methods. The resource is
therefore reported at a grade of 1.2 g Au/t. The underground resource does not include material outside
modelled mineral domains, because it is unlikely to be mined from underground.
The reporting cut-off of 1.2 g Au/t is based on preliminary metallurgical testwork and operations cost
estimates for an underground operation. Preliminary metallurgical testwork indicated that whole-ore CIL
processing technology will potentially be suitable for all materials at the San Ramon deposit, with an
average gold recovery in excess of 95% weighted for all ore types. Metallurgical testwork has
demonstrated that all material, regardless of oxidation or weathering state, will be processed in a similar
manner.
Page 14.17
Table
NI 14.7 San Ramon Block-Diluted Gold Resources – Measured and Indicated
REPORT
Total Measured
Cut-off
g Au/t Tonnes g Au/t oz Au
1.000 775,000 3.873 96,500
1.200 678,000 4.270 93,000
1.400 600,000 4.657 89,800
1.600 537,000 5.027 86,800
1.800 488,000 5.362 84,100
2.000 444,000 5.706 81,400
3.000 298,000 7.306 70,000
4.000 218,000 8.725 61,100
Total Indicated
Cut-off
1.00 4,086,000 3.10 408,000
1.20 3,475,000 3.46 386,000
1.40 3,012,000 3.79 367,000
1.60 2,642,000 4.11 349,000
1.80 2,337,000 4.42 332,000
2.00 2,079,000 4.74 317,000
3.00 1,251,000 6.26 252,000
4.00 817,000 7.76 204,000
Total Measured & Indicated

Cut-off
1.00 4,861,000 3.23 504,500
1.20 4,153,000 3.59 479,000
1.40 3,612,000 3.93 456,800
1.60 3,179,000 4.26 435,800
1.80 2,825,000 4.58 416,100
2.00 2,523,000 4.91 398,400
3.00 1,549,000 6.47 322,000
4.00 1,035,000 7.97 265,100
Page 14.18
TableTECHNICAL
AMENDED NI 43-101 14.8 San Ramon Block-Diluted Gold Resources – Inferred
REPORT
Total Inferred
Cut-off
1.00 1,832,000 2.44 144,000
1.20 1,524,000 2.72 133,000
1.40 1,284,000 2.98 123,000
1.60 1,087,000 3.25 114,000
1.80 912,000 3.55 104,000
2.00 767,000 3.86 95,000
3.00 343,000 5.65 62,000
4.00 188,000 7.49 45,000
Page 14.19
AMENDED NI 43-101 TECHNICAL REPORT Gold Block Model Section 856500E

Figure 14.3
drill hole assays

& model blocks
(Aucap)
< 0.040
>= 0.040
>= 0.050
>= 0.100
>= 0.250
>= 0.350
>= 0.600
>= 2.000
>= 3.500
>= 5.000
>= 8.000
>= 30.000
Gold Domains:
low grade
high grade
MINE DEVELOPMENT
Reno
ASSOCIATES Nevada
Red Eagle Mining
San Ramon Project
Block Model Section 856500 E
DATE 6 Aug 2013
SCALE as shown
Page 14.20
AMENDED NI 43-101 TECHNICAL REPORT Gold Block Model Section 857700E

Figure 14.4
drill hole assays

& model blocks
(Aucap)
< 0.040
>= 0.040
>= 0.050
>= 0.100
>= 0.250
>= 0.350
>= 0.600
>= 2.000
>= 3.500
>= 5.000
>= 8.000
>= 30.000
Gold Domains:
low grade
high grade
MINE DEVELOPMENT
Reno
ASSOCIATES Nevada
Red Eagle Mining
San Ramon Project
Block Model Section 857700 E
DATE 6 Aug 2013
SCALE as shown
Page 14.21
14.9
AMENDEDDiscussion of Resources
The San Ramon deposit is a steeply north-dipping, shear-zone-hosted gold deposit. New drilling since the
original resource estimate (Lindholm and Schlitt, 2013a) has identified extensions of mineralization that
project 100 m to 200 m deeper and 100 m farther to the west, so that the currently defined limits of the
deposit are roughly 2,000 m in an east-west direction and 350 to 550 m below the surface. A significant
outcome of Red Eagle Mining’s latest work has been improvement of an already good geologic model,
based on 95 new core holes (total 238) providing a solid base for the updated resource estimate.
About 75% of the total resource is classified as Measured and Indicated, with the remainder as Inferred.
Upgrade of the initial resource classification is a reflection of the substantial amount of infill drilling,
improvements in geologic understanding and QA/QC practices, and the addition of more comprehensive
density and geotechnical data and metallurgical testwork. The work done has shown a strong and
predictable mineralized shear zone and indications of varying styles of mineralization with distinctive
geological characteristics that can be modelled within the shear. The infill drilling to approximately 50 m
spacing was generally successful at verifying the modelled location of the shear zone and mineral
domains, although it was somewhat less able to verify the location and grade of mineralization greater
than ~5.0 g Au/t. Globally MDA has demonstrated that the metal content exists as stated. Additional
drilling would help to mitigate the risk associated with the local definition of this highest-grade style of
mineralization, which is the principal reason for the relatively small amount of Measured resources.
There is potential to encounter additional highest-grade quartz/sulfide zones during mining that were not
located by drilling, although this potential cannot be quantified. For example, even at drill spacing tighter
than 50 m, the localized bends and associated highest-grade mineralization similar to that encountered in
SR-042 and SR-053 could easily be missed.
Multiple test cases of the estimate at various capping grades, restrictions on interpolation distances at
varying grades, inverse-distance powers, anisotropies, and maximum number of composites per drill hole
were performed to determine the model’s sensitivity to these parameters. Also, multiple point-validation
(also called jackknifing) tests of inverse-distance to the first through fifth powers, as well as ordinary kriged
estimates, were performed for various parameters. Overall, these test cases confirmed that the average
continuity of the highest-grade mineralization is generally less than 50m, and estimation parameters were
chosen, based in part on the results, to restrict the projection of the highest grades. In other words, MDA
has accounted for the shorter continuity of the highest-grade mineralization in the estimate.
Increased drilling density will upgrade Inferred material into Indicated, and Indicated to Measured. Most of
the resources deeper than 200 m to 250 m below the surface are Inferred because of the wide drill
spacing. Drilling subsequent to the initial 2012 resource estimate has already added new Inferred material
to the resource, and the deposit is still open-ended down-plunge to the east onto newly acquired property.
Page 14.22
The previous
resource REPORT
estimate update (September 10, 2013; Lindholm and Schlitt, 2013b) was reported
as a combination of open-pit-mineable material at a cut-off grade of 0.3 g Au/t and underground-mineable
material at a cut-off of 1.2 g Au/t. At that time, the total resource consisted of 10,348,000 tonnes of
Measured and Indicated material at 1.81 g Au/t (601,000 ounces of gold), and 2,966,000 tonnes of
Inferred material at 1.69 g Au/t (161,000 ounces of gold). Because the mining scenario has now been
determined to be by only underground methods, the current estimate’s tabulation applies underground
mining criteria, and the entire resource is reported at a cut-off grade of 1.2 g Au/t. Consequently, the
resource in this report cannot be directly compared to the September 10, 2013 resource estimate.
Changes to the initial estimated resource (January 22, 2013; Lindholm and Schlitt, 2013a) included
increases in the total resource at depth as a result of expansion drilling in 2013, but these increases were
offset by decreases due to lower applied densities in the saprolite, decreased influence of mineralization
~>5.0 g Au/t, and the change in reporting cut-off grades (i.e. in the 2013 estimate (Lindholm and Schlitt,
2013b,. underground resources were reported at 1.2 g Au/t below an elevation of 2,325 m at the west end
of the deposit and 2,110 m at the east end).
Page 14.23
15.0 REPORT
AMENDED NI 43-101 TECHNICAL MINERAL RESERVE ESTIMATES
15.1 Mineral Reserves
Mine Development Associated (“MDA”) classifies reserves in order of increasing confidence into Probable
and Proven categories to be in compliance with the “CIM Definition Standards - For Mineral Resources
and Mineral Reserves” (2014) and therefore Canadian National Instrument 43-101. CIM mineral reserve
definitions are given below, with CIM’s explanatory material shown in italics:
Mineral Reserve
Mineral Reserves are sub-divided in order of increasing confidence into Probable Mineral
Reserves and Proven Mineral Reserves. A Probable Mineral Reserve has a lower level of
confidence than a Proven Mineral Reserve.
A Mineral Reserve is the economically mineable part of a Measured and/or Indicated Mineral
Resource. It includes diluting materials and allowances for losses, which may occur when the
material is mined or extracted and is defined by studies at Pre-Feasibility or Feasibility level as
appropriate that include application of Modifying Factors. Such studies demonstrate that, at the
time of reporting, extraction could reasonably be justified.
The reference point at which Mineral Reserves are defined, usually the point where the ore is
delivered to the processing plant, must be stated. It is important that, in all situations where the
reference point is different, such as for a saleable product, a clarifying statement is included to
ensure that the reader is fully informed as to what is being reported.
The public disclosure of a Mineral Reserve must be demonstrated by a Pre-Feasibility Study or

Feasibility Study.
Mineral Reserves are those parts of Mineral Resources which, after the application of all
mining factors, result in an estimated tonnage and grade which, in the opinion of the
Qualified Person(s) making the estimates, is the basis of an economically viable project
after taking account of all relevant Modifying Factors. Mineral Reserves are inclusive of
diluting material that will be mined in conjunction with the Mineral Reserves and
delivered to the treatment plant or equivalent facility. The term ‘Mineral Reserve’ need
not necessarily signify that extraction facilities are in place or operative or that all
governmental approvals have been received. It does signify that there are reasonable
expectations of such approvals.
Page 15.1
AMENDED‘Reference point’ refers

NI 43-101 TECHNICAL to the mining or process point at which the Qualified Person
REPORT
prepares a Mineral Reserve. For example, most metal deposits disclose mineral reserves
with a “ mill feed” reference point. In these cases, reserves are reported as mined ore
delivered to the plant and do not include reductions attributed to anticipated plant losses.
In contrast, coal reserves have traditionally been reported as tonnes of “ clean coal” . In
this coal example, reserves are reported as a “ saleable product” reference point and
include reductions for plant yield (recovery). The Qualified Person must clearly state the
‘reference point’ used in the Mineral Reserve estimate.
Probable Mineral Reserve
A Probable Mineral Reserve is the economically mineable part of an Indicated, and in some
circumstances, a Measured Mineral Resource. The confidence in the Modifying Factors
applying to a Probable Mineral Reserve is lower than that applying to a Proven Mineral Reserve.
A The Qualified Person(s) may elect, to convert Measured Mineral Resources to Probable
Mineral Reserves if the confidence in the Modifying Factors is lower than that applied to a
Proven Mineral Reserve. Probable Mineral Reserve estimates must be demonstrated to
be economic, at the time of reporting, by at least a Pre-Feasibility Study.
Proven Mineral Reserve
A Proven Mineral Reserve is the economically mineable part of a Measured Mineral Resource.
A Proven Mineral Reserve implies a high degree of confidence in the Modifying Factors.
Application of the Proven Mineral Reserve category implies that the Qualified Person has
the highest degree of confidence in the estimate with the consequent expectation in the
minds of the readers of the report. The term should be restricted to that part of the
deposit where production planning is taking place and for which any variation in the
estimate would not significantly affect the potential economic viability of the deposit.
Proven Mineral Reserve estimates must be demonstrated to be economic, at the time of
reporting, by at least a Pre-Feasibility Study. Within the CIM Definition standards the
term Proved Mineral Reserve is an equivalent term to a Proven Mineral Reserve.
Modifying Factors
Modifying Factors are considerations used to convert Mineral Resources to Mineral Reserves.
These include, but are not restricted to, mining, processing, metallurgical, infrastructure,
economic, marketing, legal, environmental, social and governmental factors.
Mineable reserves were developed using the resource modelled high-grade domains along with
undiluted grade estimates. The high-grade domains were used as a basis for stope designs. To
build up the mineable reserves, the following steps were performed:
Page 15.2

Expand REPORT
the high-grade resource estimation domain polygons to a minimum mining width
of 2.5 m resulting in mid-block, level-plan polygons that represent potential stopes;
o Initial designs were completed using 2.0 m minimum mining widths, and then
expanded to 2.5 m minimum mining width in order to include external dilution or
selvedge.
 Estimate diluted stope grades using only Measured and Indicated undiluted grade
estimates from both high and low-grade estimation domains;
o Note there is additional dilution from included waste and Inferred resources
added at zero grade.
 Apply economic parameters to calculate net value for each block;
 Revise stope polygons to remove negative value blocks where possible;
o Blocks with negative values were retained where required to maintain

continuous blocks within a stope.
 Resources inside of each stope polygon were summarized and the economic value for
each stope was calculated;
 Stope polygons with negative values were either modified or eliminated;
 Centerline development was refined to access each stoping area;
 Stope economics were reassessed to include an allocation of development costs

required to mine each stope;
 Final refinement or elimination of stope polygons was completed; and
 Solids of the final stope polygons were created and resources inside of each solid were
summarized.
The stope solids reflect the material that is to be mined and sent to be processed. As such, all
Measured and Indicated resources inside of the stope solids, including resources below the
mining cut-off grades (oxide 1.96 g Au/t, transition 2.14 g Au/t, and sulfide 2.00 g Au/t) (internal
dilution), are considered to be Proven and Probable reserves respectively. Table 15.1 shows
the Proven and Probable reserves for the San Ramon deposit by material type.
Table 15.1 Total Proven and Probable Reserves by Material Type
Page 15.3
Oxide REPORT
AMENDED NI 43-101 TECHNICAL Mixed Sulfide Total Proven and Probable
K Tonnes g Au/t K Ozs Au K Tonnes g Au/t K Ozs Au K Tonnes g Au/t K Ozs Au K Tonnes g Au/t K Ozs Au
Proven 11 4.60 2 3 3.12 0 415 5.99 80 429 5.93 82
Probable 63 3.91 8 17 4.37 2 1,915 5.08 313 1,995 5.04 323
Proven & Probable 74 4.01 10 20 4.20 3 2,331 5.24 393 2,425 5.20 405
 Reserves are reported based on Measured and Indicated resources inside of mining
shapes;
 Measured and Indicated resources below the mining cut-off grade, above the resource
grade, and inside of mining solids are included as reserves; and
 Rounding may result in apparent summation differences.
Table 15.2 shows the total Proven and Probable reserves along with additional dilution. This
additional dilution is waste and Inferred material inside of the stopes that cannot be segregated
out of the material sent to the mill. The waste and Inferred material is included in the mill feed at
zero grade, reducing the overall mill feed grade. The feasibility uses a fully diluted grade of 4.57
g Au/t for production scheduling and economic analysis.
Table 15.2 Total Proven and Probable Reserves and Dilution
K Tonnes g Au/t K Ozs Au

Proven 429 5.93 82
Probable 1,995 5.04 323
Proven & Probable 2,424 5.20 405
Dilution 334 - -
Page 15.4
Figure 15.1 Mineral Reserves

Page 15.5
15.2
AMENDEDEconomic Parameters
After design, the economic viability of stope blocks was checked by estimating the value of each stope
block and then modifying or eliminating stope solids with zero or negative gross value. Table 15.3 shows
the economic parameters that were used to estimate the value of each stope block. Cut-off grades and
reserves have been stated using a $1,300 per ounce gold price. Note that these parameters were used
for defining stopes and differ slightly from the final economic analysis. During the feasibility study, the
LMM royalty increased to 3%.
Table 15.3 Economic Parameters
Mining Costs
UG Mining Cost $ 37.36 $/t Mined
Processing Costs
Milling $ 25.39 $/t Processed
Refining $ 10.00 $/oz Au Produced
Recoveries Oxide Mixed Sulfide
Milling - Au 95% 87% 93%
Payable 99.5% 99.5% 99.5%
Royalties
Government 3.20% nsr
Liberty Mutual Insurance 2% nsr
G&A Costs
G&A Per Year $ 3,535,200
Throughput (t/day) 1,000
Days per Year 360
Throughput (t/year) 360,000
G&A $/t Processed $ 9.82
15.3 Dilution and Ore Loss
Initial designs were undertaken using a 2.0 m minimum mining width. Measured and Indicated material
inside of these designs that is not above the mining cut-off grade is added at the respective grade, while
Inferred and un-estimated material is added at zero grade with both being considered internal dilution.
The stope designs were later expanded to 2.5 m minimum widths to account for external wall dilution
(selvedge). This external dilution models what additional material may be captured in the stopes due to
over break from blasting and cleaning of the ribs and back.
Page 15.6
Dilution by NI
Measured REPORT
and Indicated blocks included material below the mining cut-off grade, but above the
resource cut-off grades. This ensures that only metal from the officially reported resources contribute to
value generation in the cash-flow analysis. This dilution totals 188,000 tonnes of material grading 1.60 g
Au/t and is part of the Proven and Probable reserves.
The stope solids include material that is classified as Inferred resource or was not estimated, and while
the tonnage of this material is included as dilution, no additional metal content is included. This dilution
totals 334,000 tonnes of material at zero grade.
On an overall tonnage basis, the total dilution included is approximately 23%.
The San Ramon deposit is a high-grade narrow vein deposit. Many of the veins are narrower than the
resource model block width. During mining, it will be important to better define these veins through
delineation drilling prior to final planning and subsequent mining for each stope. This will allow adjustment
of the stopes to a minimum mining width around the veins to get the best value out of the ore and avoid
mining areas where dilution will destroy value. Thus, no additional external dilution has been added
beyond the 2.5 m minimum mining width.
Ore loss has been accounted for by removing areas that will not be mined because either they are too
remote from other potential ore to pay for additional development, or the potential value has been diluted
to a point where the material is eliminated from consideration. No other ore loss has been considered.
15.4 Reserve Comparison with the Preliminary Economic Assessment
The Feasibility Study builds on the concepts of the PEA Technical Report by MDA (Dyer, Lindholm,
Schlitt, Defilippi, 2014) which included Inferred resources. As such, a comparison between potential
mineable material from the PEA and the resulting fully diluted reserves is presented in Table 15.4 and
shown in Figure 15.2 and Figure 15.3. The PEA carried the prescriptive wording required for a PEA that
“ The Preliminary Economic Assessment is preliminary in nature. It includes Inferred mineral
resources that are considered too speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral reserves, and there is no
certainty that the Preliminary Economic Assessment will be realized.” This language is repeated
here with respect to the PEA potentially mineable material stated in tables below.
The diluted Proven and Probable reserves as presented herein are based on the same resources model
that was used in the PEA, with minor changes due to subsequent additional land to the east of concession
B7560005. The changes consider the original diluted material processed from the PEA, removal of
Inferred material, changes to design, and expansion of the minimum mining width to include external
dilution.
Page 15.7

Table 15.4 REPORT
Changes from PEA Material Processed to Reserves
Tonnes g Au/t Ozs Au

PEA Material Processed 3,642,000 4.76 557,300
Remove Inferred (832,000) 4.16 (111,200)
Change due to Design (540,000) 4.26 (73,900)
Add External Dilution 489,000 2.09 32,900
Final Diluted Reserve 2,759,000 4.57 405,100
Figure 15.2 Changes to Tonnage – PEA vs Reserves
Figure 15.3 Changes to Ounces of Gold – PEA vs Reserves
Page 15.8
16.0
AMENDED NI 43-101 TECHNICAL REPORT MINING METHODS
The San Ramon deposit has been planned as an underground mining operation. The advantages of
underground mining include:
 Underground mining helps to reduce the footprint of the mine and its environmental
impacts;
 The San Ramon deposit is a high-grade, narrow vein deposit which is ideally suited to
underground mining methods which minimise dilution from the mining process; and
 Underground selectivity will help to maximize run of mine (ROM) feed grades.
Red Eagle Mining has been in discussions with contract miners for both development and underground
production. Due to the experience and capabilities found in prospective Colombian contract miners, Red
Eagle Mining elected to operate the mine using a contract mining group. The philosophy is to issue a
contract for a five year term, with an option to extend. Red Eagle Mining will retain the option to take over
the contract at any time should it prefer. Contract miners in Colombia are very experienced at
underground development mining techniques, but lack the experience in production stoping. Red Eagle
Mining intends to manage the stope production operations with close management, and with the
introduction of an experienced miner training team during the first year of ore production to train the
Colombian contractor miners.
Red Eagle Mining has progressed the contract tendering process to two very experienced Colombian
mining contractors (both with similar tender rates), and is in the process of moving forward into detailed
contract negotiations. The rates presented by the short-listed contractors have been adopted in the costs
estimates for mine development and production.
The contract miners will be required to provide infrastructure for mining activities. The infrastructure is to
include workshops, warehouse, fuel supply, and transportation and off-site accommodations for their
employees. Red Eagle Mining will provide power and water to the portal and on site facilities.
Mining will commence with construction of a portal followed by development of a decline ramp and lateral
haulage levels to access the deposit. The primary mining method for the San Ramon deposit is
mechanized shrinkage with delayed fill (MSDF).
16.1 Underground Development
The mine will be accessed through a single portal entrance. Development will include construction of a
decline, main haulage drifts, and attack ramps. Underground ventilation will require vent shafts to the
surface along with raises between levels.
Page 16.1
Development
has been designedREPORT
on the footwall side of the deposit. Cross-cuts will connect the
development with stope production locations and, in some circumstances, may be driven through the vein
beyond the deposit and into the hanging wall so that additional exploration and delineation drilling may be
undertaken from the hanging-wall side of the deposit.
Figure 16.1 and Figure 16.2 show the underground development design. The following sections discuss
the various components of the development.
Page 16.2
Figure 16.1 Underground Development – Long View

Page 16.3
Figure 16.2 Underground Development – Plan View

Page 16.4
AMENDEDPortal
Construction
NI 43-101
The portal is located in the footwall to the south, off the central area of the deposit. The portal coordinates
are: North 1223052, East 857019 and Elevation 2,468 m.
The portal location facilitates direct access to the deposit while providing the area necessary for locating
temporary and permanent facilities near the portal area. These facilities will service the underground
mine. It also provides a convenient location for transporting mined material to the adjacent processing
plant or to temporary ore and waste stockpiles.
Geotechnical Conditions
The portal and 160m of the decline will be developed in ground with different degrees of weathering. The
main geological structures of interest are the saprolite rock, and a schistose mylonite (shear zone) rock
characterized by both ductile, in the form of mylonite, and brittle deformation, in the form of breccia and
gouge zones as described in the geotechnical report (Golder, May 2014).
Three geotechnical core holes were drilled along the centerline projection of the decline: SR-GT-06, SR-
GT-07, and SR-GT-08 and one early exploration hole further to the west: SR-008. The geology was
interpreted based on core logs of these holes and is shown below in Figure 16.3.
Figure 16.3 Portal and Ramp Area Geology
Page 16.5
The three NI
geotechnical REPORT
holes also provided additional information for rock quality determination (RQD)
which was used in the design of the portal and the transition area between the portal and the decline.
Hole SR-GT-06, drilled near the top of the hill approximately 50 m east of the decline bend shows
approximately 36 m of saprolite overlaying poor-quality schist. This hole was drilled to a depth of 60 m,
and does not reach the bottom elevation of the proposed decline. SR-GT-07 was drilled approximately 40
m west of the proposed portal. This hole shows about 12 m of saprolite, followed by 26 m of weathered
and fractured quartz-micaceous schist. Fresh granodiorite is encountered below a depth of 44 m. A
portion of the proposed decline is located along schist. Schist core recoveries are generally good (above
80%), but RQD values are between 10 and 20%.
In general, the expected geotechnical conditions in the area are favourable in terms of surface stability.
Steep, unsupported cuts in saprolite have been observed in the project area with minimal erosion or
stability issues. Saprolite in the area consists of a fine-grained silty soil, grading coarser with depth with
sporadic diorite blocks (spherical weathering). Shear resistance is generally high when unsaturated, thus
the steep cuts observed, but decreases as water content increases.
Gullies and rills may trigger when the saprolite is cut at angles below 50 degrees and no surface water
diversion channels are provided near the head of the cut. No landslides were observed in the portal pad
area (Figure 16.4). Crown ditches and meshed shotcrete are recommended to mitigate erosion problems
and control runoff into the pad area. Some bolts or anchors may be necessary depending on conditions
encountered during excavation.
Figure 16.4 Portal Pad Area
Portal and Initial Ramp Construction
The construction of the portal and the ramp will consist of 3 phases: Portal Area Excavation, Portal
Excavation, and Ramp Excavation.
Page 16.6
Portal
AMENDEDArea 43-101 TECHNICAL REPORT
NIExcavation
The portal area excavation will provide a platform and the face for the portal excavation. The approximate
volume of excavation at the portal areas is 3,270 m3. The cut is approximately 37 m long and at this
distance it will provide a face that will be 10.7 m high at an 80° face angle. The exposed face and
surroundings will be stabilized with soil bolts and shotcrete. A long section view of the estimated
excavation in this area is shown in Figure 16.5.
Figure 16.5 Portal Area Excavation Long Section
Crown Ditch
10cm shotcrete
10.7m
PORTAL CUT
3.270 cubic meters
4.5m
2.7 % gradient
37.2m
MINE DEVELOPMENT ASSOCIATES

San Ramon Deposit
Date: 22-Sep-2014
Scale: not to scale Portal Area Excavation Long Section
Portal Excavation
Once the surface of the excavated area is stabilized, portal excavation will begin using a 4.5 m wide by
4.5 m height profile with a crowned back to reduce stresses at the back of the development.
Page 16.7
When collaring
the portal, REPORT
reinforcement of the portal structure will be required. Crown bench and crown
face anchor bolts will be installed to provide the required support. Additional ground support will require
the installation of steel ribs and possibly a canopy system such as a headwall and two wing walls and a
buttress against the portal crown. A cross section of the portal preparation is shown in Figure 16.6.
Figure 16.6 Cross-section of Portal Excavation Area
Ramp Excavation
The ramp excavation is at a maximum nominal gradient of 14% (1 in 7) in the straight development, and a
maximum 11% (1 in 9) gradient in curve development. The portal structure will be extended into the
subsurface portion of the ramp with the initial 30 m requiring the canopy structure, including the steel ribs
spaced at 1 m. Figure 16.7 shows the area where the canopy structure and steel ribs will be required.
Page 16.8

Figure REPORT
16.7 Subsurface Portion of the Ramp
SR-GT-07
Crown Ditch
Anchor Bolts
Saprolite
19.0m
21.9m
10cm Shotcrete
10.7
Canopy
4.5m
d Shotcrete
Reinforce Schist
50.2m Steel Ribs
Ramp (15% max gradient) (spaced at 1m)
MINE DEVELOPMENT ASSOCIATES

San Ramon Deposit
Date: 22-Sep-2014
Scale: not to scale Subsurface Portion of the Ramp
Beyond the initial 30 meters, reinforced shotcrete and bolts will be required until development in more
competent rock begins approximately 180 m down the ramp.
A long section of the first 200m is shown in Figure 16.8. The denser grid lines are shown where the ramp
curves. Figure 16.9 shows the topography along with the ramp centreline.
Page 16.9
TECHNICAL
AMENDED NI 43-101Figure 16.8 REPORT
Long Section of the Initial 200 m of the Ramp
Page 16.10

Figure 16.9 REPORT
Ramp Centerline Projection to Topography
Typical Cross-Section of the Ramp
A typical cross-section of the ramp showing the location of utilities (ventilation duct, water supply and
dewatering lines, communications and power) and a low-profile underground truck (20 tonne capacity) is
shown below in Figure 16.10.
Page 16.11

Figure 16.10 Typical Cross-Section
16.1.3 Primary Development
The primary development extends from the portal entrance to the deposit and is a continuation of the
ramp excavation as previously described. The primary development has been designed using a main
ramp and sublevel ramps parallel to the deposit approximately 120 m into the footwall providing access to
main haulage drifts. The primary development gradient is designed at 14% where the development is
straight. In places where curves are required, the development is designed at a slope of 11%.
Design dimensions are 4.5 m wide by 4.5 m high, with a crowned profile to reduce stresses at the back of
the development. The dimensions are designed to accommodate haulage of material using 20-tonne-
class, underground, articulated haul trucks. Primary development will be finished with utility lines,
electrical cable, and ventilation ducting as required. A total of 4,400 m of main ramp and 11,100 m of
sublevel ramps have been designed for the life of the mine.
16.1.4 Haulage Drifts
Haulage drifts are developed approximately 100 m away from the deposit and are designed to use the
same profile as the primary development (4.5 m wide and 4.5 m high, crowned) in order to accommodate
all underground mining equipment. In general the haulage drifts are developed with a zero gradient, but in
some areas the haulage access is driven at grade to get from one attack ramp to another. This is done to
reduce the overall development for the deposit.
In total, 1,800 m of main haulage drifts have been designed for the life of the mine.
Page 16.12
AMENDEDAttack
Ramps
NI 43-101
Attack ramps have been designed to access the stopes. Many of these attack ramps connect to the
sublevel development. However, where the attack ramps are on roughly the same elevations, and can be
easily connected, haulage drifts are developed. The attack ramps will be driven at gradients required to
access the different levels of stope panels, but not to exceed 15% down to, and 17% upward to the stope.
Attack ramps have been designed with dimensions of 2.5 m wide by either 2.5 m or 5.0 m high, depending
on the height of the lifts to be used in the stope. Attack ramps will be mined using single boom jumbos
and smaller 1.5 cubic meter load-haul-dump (LHD) equipment. A total of 9,100 m of attack ramps have
been designed for the life of the mine.
16.1.6 Ventilation Shafts, Raises and Drifts
Ventilation shafts and raises have been designed and will be connected to primary development. Two
ventilation shafts have been incorporated into the design, and the additional ventilation raises connect to
various levels to provide additional ventilation. Ventilation shafts have been designed to be 3 m in
diameter, though the final diameter may change during engineering design, depending on final ventilation
requirements for the mine. A total of 800 m of ventilation raises have been designed for the life of the
mine.
Ventilation drifts connect the ventilation raises with the primary development. Ventilation drifts will have
dimensions of 4.5 m by 4.5 m with crowned backs. A total of 380 m of ventilation drifts have been
designed for the life of the mine.
16.1.7 Other Development
Additional development will be required for muck-bays, workshops, and drill stations. Ten-meter-long drill
stations will be required every 25 m along the decline (on both the main decline and sublevel ramps) from
approximately elevation 2,380 m to elevation 2,220 m. Initially these will be used for delineation drilling of
the deposit. After that, they will be used for passing areas, muck bays and safety bays. Additional muck
bays will be developed near the attack ramps as required.
16.2 Stoping Methods
The mining method selected for the San Ramon deposit is Mechanized Shrinkage with Delayed Fill
(“MSDF”). The method is similar to mechanized cut and fill but uses breast blasting of the back between
lifts. Then, rather than mucking of ore and backfilling immediately, the MSDF method leaves the ore in
place in the stope, only removing enough material from the stope to remove swell (similar to shrinkage
stoping but removing the swell from the top instead of the bottom). Access to the stope is provided by
establishing an attack ramp. For each lift, the attack ramp back is blasted to establish access for the
subsequent lift. Support is placed in the stope as needed during the drilling and blasting cycle of each lift.
Once enough lifts have been drilled and blasted, the ore will be mucked out completely. The last cycle of
mining for MSDF stopes is backfilling of the stope from the bottom up, progressively backfilling the attack
ramp as well.
Page 16.13
Figures 16.11
through REPORT
to Figure 16.17 show the sequence of activities which are described in the following
sections.
Figure 16.11 Mechanized Shrinkage with Delayed Fill: Development in Ore
Figure 16.12 Mechanized Shrinkage with Delayed Fill: First Lift
Figure 16.13 Mechanized Shrinkage with Delayed Fill: Second Lift
Page 16.14
Figure 16.14 Mechanized Shrinkage with Delayed Fill: Subsequent Lifts
Figure 16.15 Mechanized Shrinkage with Delayed Fill: Mucking
Figure 16.16 Mechanized Shrinkage with Delayed Fill: Backfill
Page 16.15
Figure 16.17 Mechanized Shrinkage with Delayed Fill: Completed Stope
16.2.2 Attack Ramp Development
To access the ore body, an attack ramp is driven perpendicular to the ore body at a 15% decline gradient.
The attack ramp standoff distance has been designed so that the total stope height can be 30 m high,
utilizing a 15% gradient downhill to the first lift and a 17% gradient up the last lift in the stope. This
standoff distance is variable in different areas as a function of the ore height and dip of the ore body, but
averages 90 m laterally from the ore body. At the bottom of the attack ramp, turns are developed into the
ore body in both directions where development in ore commences.
The initial attack ramp is completed using typical drifting methods. The back is supported using standard
support, and may require modification as experience in different areas is gained.
Subsequent lifts within the stopes require that the back of the attack ramp be slashed down to allow
access for each lift. This is done by drilling blast holes into the back at a 45 degree angle and then
blasting the back downward. The new back that is developed is supported as required to ensure stability
and safety. Some levelling of waste is required while supporting the back. Once sufficient support has
been completed, the remaining waste is mucked out of the attack ramp so that it will not dilute any ore.
Slashing of the back in the attack ramp is done after slashing of the back within the stope. The excess
swell of ore from the stope is used to backfill the access floor in the attack ramp so that during final
mucking of the stope, all material can be sent as ore to the process facility.
Some dilution will occur when waste is blasted down onto the ore backfilled in the attack drift, and care will
be required to ensure that this dilution is not excessive. Methods of controlling dilution may include
marking the interface between the ore and the waste by using either a geo-membrane or paint.
Most importantly, when the uppermost portion of the attack ramp is developed, the supports must be
carefully installed to ensure safe operations during the final mucking of the stope. The backfilling of attack
ramps will be done in the same manner as described in the backfill Section 16.2.6.
Page 16.16
NI 43-101 TECHNICAL
AMENDEDDevelopment
16.2.3 in Ore REPORT
At the bottom of each attack ramp, a curve is developed in each direction with sufficient radius and width
to allow for equipment to access the stope. The development is then driven along the trend of the ore
body either to the end or up to 100 m in length, whichever is less, in each direction. The development in
ore is driven to a minimum width of 2.5 m and a height of the lift. Lift heights are anticipated to be 5 m
where possible, but may be mined at a height of 2.5 m where the higher lift would cause excessive
dilution. Over break of 0.5 m is included in the minimum width (0.25 m per side), so some widths may
vary; however, with experience, a minimum width of 2.5 m with the over break is expected to be
maintained without difficulty.
The entire length of the ore development is supported as required to safely enter underneath the
excavation. In some areas, this may require use of mesh, straps, and rock bolts based on ongoing
experience. Safety is of key concern, and support in the ore development drifts will only be needed for a
short time. Thoughtful design of the support mechanisms must satisfy safety needs and also minimize
scrap that will have to be removed from the ore prior to processing.
All muck generated from development in ore will be hauled to underground muck bays for truck loading or
directly to the surface for processing.
16.2.4 Rib Mining
Once ore development has been completed, the resulting drift is widened, as needed, to extract ore
remaining along the sides of the development. This will be done using slashing techniques. After
slashing, the material is cleaned away, and support is placed as required. All ore that is mined by
slashing is hauled to muck bays for truck loading or directly to the surface for processing.
16.2.5 Mining Additional Lifts
Once the bottom lift of a panel has been mined, additional lifts are blasted, first by slashing the back, then
supporting the new back to ensure safe access, and then mining of the ribs. The additional lifts are mined
leaving ore in place and mucking only what is required to relieve swell from the top of the stope muckpile
so that work can continue on the subsequent lift. The required tasks to mine each lift are described below.
Each lift will be mined in the same manner, with the exceptions of using more stringent support on the top
lift.
Slashing the Back
Slashing of the back will be completed by drilling holes at a 45 degree angle into the back and up into the
stope using a single boom jumbo. The holes are oriented toward the direction of the development. Where
the shot is to be initiated, holes should be angled slightly flatter to provide a sufficient breaking point.
Blast pattern designs will use between a 0.50 kg/t and 0.30 kg/t powder factor, depending on the
requirements for fragmentation and based on experience.
Page 16.17

Support
Once the back has been slashed, then the muckpile along the top of the stope is levelled off as needed
and used as a platform to install support. Ore removed to level the floor will either be placed into the
attack ramp to act as a road way, or hauled to a muck bay, or to the surface. The remainder of the ore is
left in the stope, which will provide for additional support of hanging wall and footwall until final mucking of
ore from the stope.
Rib Mining
Rib mining will be completed in the same manner as described for the initial lift.
16.2.6 Mucking
Mucking is undertaken once enough lifts have been mined. The broken ore that has been left behind is
mined out using LHD equipment. The ore is trammed to a nearby muck bay for loading onto underground
haul trucks. The muck will be removed in lifts that have similar heights as the lifts that were mined,
although some areas may be mucked on higher lifts, if appropriate. After and/or during the mucking of
each lift, additional support will be placed in the hanging wall and footwall of the stope as needed,
providing additional safety. Mucking continues until the stope is empty of ore.
Mucking is intended to be started after 15 m of the stope has been mined (after six 2.5 m lifts or three
5.0 m lifts). The height is determined by the geotechnical stability of the stope, and will come from both
experience and geotechnical analysis of core from the delineation drilling program. During mucking
operations, it will be important to monitor the stability of the stope while ore is removed. Should the stope
show signs of becoming unstable, it may be necessary to use remote-controlled LHD’s to complete the
mucking operations. The mining contractor will be required to have at least one LHD with remote control
capabilities available at all times.
16.2.7 Backfill
Backfill is to be used as required, but not all stopes will be fully backfilled. The backfill will consist of
filtered tailings and development waste rock. Tailings will be placed in a single lift extending from the far
end of the stope inward to the attack ramp. Once the lift of tailings is placed, then a lift of waste rock from
development will be placed on top of the tailings. The waste is placed starting from the attack ramp and
working back to the far end. The amount of waste placed on top of the tailings will be sufficient to allow
equipment to drive on top of the backfill. It has been assumed that 60% tailings and 40% development
waste rock will be a suitable mixture of tailings to waste to stabilize the fill.
Page 16.18
MSDF is aNI
bottom-up REPORT
mining method; however, to avoid having to develop to the bottom of the ore body
before production mining can occur, some mining may be done starting at the middle of the deposit. In
order to recover material from below a stope mined in the middle of the deposit, it is planned to provide an
artificial crown pillar with a layer of cemented rock fill (CRF). CRF will be produced by adding cement
slurry to mine development waste rock in a purpose built sump, and mixing the blend using an LHD and
then trammed to the stope. Mining costs for San Ramon have assumed that 2.5 m of CRF with 5%
cement will be used in these cases so that more complete extraction of ore can be obtained. However,
tests incorporating 3% cement mixed with the tailings showed very good strengths (1,500 kPa), and
should be adequate for CRF. The CRF will become an artificial crown pillar which can be undermined by
stopes below it.
A proper mixture of CRF will depend on blending fine and course waste in proper proportion with the
cement slurry. In some cases the addition of some tailings material may take the place of the finer waste
material, however, this will require additional study.
One of the benefits of the MSDF method is that it reduces dilution and ore loss when mining subsequent
lifts. Once a stope level is completed, a new level is mined above the previous one. The ore from the
new level will be dropped on top of the backfill in the old stope level below. To control the amount of
dilution and ore loss, a firmer layer of backfill will be required in the mined-out stope. For this reason, the
upper lift of a level will have additional cement added to the backfill. This will provide a smoother mucking
surface and reduce dilution and ore loss when subsequent ore is mined above the backfill. This study
assumes that six 2.5 m lifts are mined prior to backfill, leaving the maximum height exposure within the
stope at 15 m. For costing purpose, the upper most 2.5 m of each 15 m lift has been assumed to require
1% cement to help and prevent dilution and ore loss. Thus, the addition of 1% cement is used for 16.7%
of the backfill volume. The cement will be mixed with the tailings in sumps similar to the mixing of CRF.
Recent tests to investigate the use of cement mixed with the tailings has indicated that a 1% cement
addition to the top of the tailings backfill could strengthen (to approximately 200 kPa) the surface for
equipment travel. The addition of waste rock will also improve the strength to facilitate equipment travel
and control dilution.
The final upper lift of stopes that are mined to the uppermost level of the ore deposit will likely be left
empty, as long as this does not impact the stability of the mine. Stopes that contain these voids will
require monitoring from time to time through the life of the mine to ensure that they are not becoming
unstable and that they are not causing instability to occur in other nearby mining areas.
16.2.8 Overall Stope Geometry
In general, the stopes will be developed in levels that are 30 m in height off of each attack ramp. The
height they are mined prior to mucking has been planned to be 15 m, although this is dependent on the
continuity of ore and stability of the stope. Stopes that can maintain a higher height will be mined
accordingly, particularly as experience is gained.
Page 16.19
The minimum
AMENDED miningTECHNICAL
NI 43-101 REPORT
width used for design is 2.5 m, which accounts for a 0.5 m over break. The average
overall mining width is 3.0 m. Stope lengths will be kept to 100 m maximum on either side of the attack
ramp to reduce tramming distance within the stopes. Some areas may only allow a shorter distance
based on geotechnical considerations, or continuity of ore. Most stopes have been designed to be less
than 100 m long based on ore continuity and to optimize the use of the attack ramps.
Stope widths have been designed to encompass the width of the ore body. The current understanding of
the ore body indicates that only 4% of the stopes will need to be wider than 5 m. Stopes that are wider
than 5 m require additional support while mining (see Section 16.2.8 below).
16.2.9 Modified MSDF for Wide Stopes
In areas where the ore deposit is wider than the average 3.0 m width, a modification to the MSFD method
will be used. In this situation, the MSDF stope would be mined at a comfortable minimum mining width
leaving a portion of the ore in either the hanging wall or footwall behind as each lift is mined. Then during
the mucking process, the ore would be drilled and blasted in benches prior to the mucking. In this case,
additional support will need to be installed on the wall that is blasted.
The preference is to initially leave ore on the footwall side, which is thought to be of poorer quality in
places than rock on the hanging wall. Additionally, mining the hanging wall first allows for careful
installation of support along the hanging wall side, so that material would be less likely to fall into mined
areas.
16.2.10 Modified MSDF for Multiple Veins
Where multiple parallel veins are present, the veins will need to be mined somewhat simultaneously so
that the same attack ramp can be used. This will avoid repeated backfilling of the attack ramp that would
be required if the veins were mined separately. Where possible, it will be desirable to mine the hanging
wall vein first, to minimize the amount of stress within the overall hanging wall. When mining multiple
veins in this manner, special care should be taken to ensure stope stability. This may require that only a
couple of lifts can be mined prior to backfilling.
In order to mine veins and leave a pillar between them, the separation between the veins has to be
sufficient to maintain stability of the pillar. It has been assumed that the minimum distance between veins
is 2.0 m. In cases of less than 2.0 m of separation, the stopes will either be joined, or one or more of the
veins are excluded from the stope design and are not recovered.
16.2.11 Benefits of MSDF
The benefits to using MSDF instead of cut-and-fill mining are:
 Because ore is being slashed from the stope back and dropped on ore, dilution and ore
loss during mucking are greatly reduced;
Page 16.20

Because MSDFREPORT
slashing techniques are used for the bulk of the stope, the powder
 If development of MSDF stopes is maintained ahead of ore requirements, underground

stockpiles of ore will be available that can be delivered as required to the mill;
 Most of the fill only requires enough strength for equipment to be operated on top of it to
deliver more fill, which reduces cement requirements and costs; and
 The method can easily be converted to cut-and-fill techniques where ground conditions
become weak.
16.3 Ventilation
A preliminary ventilation system has been configured by dividing mine development and production into
three main phases. At the start of production, the ventilation system will consist of one intake and one
exhaust opening. Later in the mine life, ventilation will be expanded to two intakes and one exhaust
openings for the remainder of the life of the mine. The ultimate configuration relies on the portal and the
far east ventilation shaft to be used as main air ventilation intakes, and the western ventilation shaft (near
the center of the deposit) will serve as an exhaust. In the event of a fire deeper in the mine, this allows for
the main ramp to act as a safe egress into fresh air. Likewise, egress into fresh air can be made into the
most eastern ventilation shaft.
At the start of construction, air will be forced into the main ramp using auxiliary fans located on the surface
near the portal. The decline will be furnished with 1 m diameter ventilation ducting to move the air down
the decline. Ventilation Phase 1 for production will start once the first ventilation shaft is commissioned.
At that point, fans installed at the surface of the ventilation shaft exhaust air out of the mine pulling fresh
air into the mine through the portal. Two 200 kW fans with the ability to exhaust 250,000 cfm of air at a
pressure of 1.6 inches of water will be installed in parallel in the western ventilation shaft. These fans will
be operated so that one is a backup to the other to allow the ability to provide ventilation 100% of the time.
Once the primary exhaust shaft is operational, the ventilation ducting will be removed from the main
decline and salvaged for use in additional development. A 75 kW auxiliary fan will be placed near the
base of the exhaust shaft to supply air through the 1 m diameter salvaged ventilation ducting for additional
development. At the start of production, additional 75 kW auxiliary fans will be placed in the main decline
near production areas and ventilation will be forced into production areas using ventilation ducting.
Once the second ventilation shaft is commissioned, Phase 2 of the ventilation system will be in place.
This ventilation shaft will provide inflow into the eastern portion of the mine. Ventilation doors will be
placed between the Phase 1 and Phase 2 ventilation system to control the amount of air drawn in from
each of the intake (the main portal and the eastern ventilation shaft). As additional levels of the mine are
developed, ventilation raises will exhaust air from the mine.
Page 16.21
Auxiliary fans
will provide REPORT
ventilation to development and production areas as needed through the life of
mine. Air will be blown into the production areas using 0.6 m diameter ventilation ducting. Ventilation will
also be regulated using air doors as required to provide a positive pressure in the direction of desired air
flow.
Figure 16.18, Figure 16.19, and Figure 16.20 shows the conceptual ventilation designs for Phase 1, 2,
and the end of the mine life.
Page 16.22
Figure 16.18 Ventilation Conceptual Design – Phase I

Page 16.23
Figure 16.19 Ventilation Conceptual Design – Phase II

Page 16.24
Figure 16.20 Ventilation Conceptual Design – End of Mine Life

Page 16.25
NI 43-101 TECHNICAL
AMENDEDEquipment
16.3.2 Loads REPORT
A design value of 0.06 m³ /s/kW was used to calculate the required airflow quantity for dilution of diesel
exhaust and other contaminants in the mine. Typically, haul trucks and LHD’s have the highest horse
power and operating hours, and therefore the greatest diesel emissions. Thus a high utilization factor was
used to calculate the requirements due do these two equipment types. An equipment load summary is
presented below in Table 16.1.
Table 16.1 Equipment Loads
Location / Phase Airflow (m3/s)

Development Production Sublevel Ramp Haulage Route Total
Phase 1 20 20 10 25 75
Phase 2 10 40 20 25 95
Phase 3 10 40 20 40 110
16.3.3 Airflow Velocity
In the quantity of airflow required, airflow velocities were also considered. Excessive air velocities not only
create problems with dust control, but might also cause discomfort to mine personnel. Recommended
maximum airflow velocities are shown in Table 16.2.
Table 16.2 Recommended Maximum Airflow Velocities
Airway Velocity Velocity

(m/s) (fpm)
Ventilation Shafts 20 4,000
Main Haulage Routs 6 1,200
Working Faces 4 800
16.3.4 Surface Fans
Fan operating requirements for the Santa Rosa Gold Project are provided in Table 16.3. Fan silencing
may be a consideration, as will baffles to precipitate wet particulate matter from the exhaust air. This can
be addressed with a 90 degree bend and the erection of cladding around the system. The fan operating
requirements include estimated pressure losses in the mine up to the ventilation raise collar. The fans will
be fitted with Variable Frequency Drives (VFD). VFD installations will allow airflow to be reduced,
depending on the ventilation needs of the mine, and thus input power can also be reduced to the fans.
Page 16.26

TableNI16.3 REPORT
Estimated Fan Operating Points (Calculated at Ventilation Raise Collar)
Phase Fan Description Quantity Pressure Input Power Location Fan Mode
3 +
(m /s) (kPa)* (kW)
Phase 1 Fan 1 75 0.21 23.7 Western Vent Shaft Exhaust
* At standard density 0.075 lb/ft3 (1.200kg/m3)
+
At 65% efficiency
Ventilation will be regulated to adjust the amount of air delivered to working areas using bulkheads or air
doors, as well as auxiliary fans, as required.
16.4 Geotechnical Studies
A study on the RQD for underground mining was undertaken by Golder in April, 2014. This study included:
 Definition of rock domains based on available lithology descriptions in the core drill log
database;
 Data analysis and filtering of the existing database;
o RQD values associated with core run recoveries less than 80% were removed
from the analysis;
o Drill holes more than 100 m away from the shear zone and proposed mine
development were removed from the analysis.
 Statistical analysis of the RQD values for each rock domain, estimation of representative
RQDs and correlation to rock quality for generation of support and stand up time
recommendations; and Analysis of tele-viewer data for assessment of principal
discontinuity sets for each domain.
For estimation of rock support requirements and stand up times the Barton (1976) Q-method was
employed. The results from the analyses are shown in on the following Figure 16.21.
Page 16.27
TECHNICAL
Figure
Barton Q Characterization for San Ramon RQD
160 Hanging Wall
140 Shear Zone

Foot Wall
120
Intermediate
100
Frequency
80
60
40
20
0
0 20 40 60 80 100
RQD (%)
The intermediate zone is defined as parts of the shear zone that contain a more consolidated rock matrix,
as inspected in the drill core.
The results were checked by using an alternative rock mass rating system - Bieniawski (1976), and the
results are depicted in the following Figure 16.22.
Page 16.28

Figure 16.22 REPORT
Bieniawski RMR Classification for San Ramon RQD
The Barton results show very close similarity with the Bieniawski ratings, and confirm the classifications as
analysed by Golder.
Further, utilizing Bieniawski, the stand-up times for unsupported spans for each rock type are shown in the
following Figure 16.23.
Page 16.29
TECHNICAL
AMENDED NI 43-101 Figure 16.23 REPORT
Bieniawski Span Tolerances for San Ramon
ROCK MASS CLASSIFICATION
HANGING AND
FOOT WALLS
INTERMEDIATE
SHEAR ZONE
The conclusions to this study were that the quality for the hanging and foot walls is expected to be good to
very good with minimal support requirements for 20 m spans or less. Occasional support in the form of
bolting and shotcrete may be needed, particularly when the openings encounter a dyke or weak zone.
Conversely, for development along the poor quality shear zone, bolting and reinforcement will be required
at all stages of development.
16.5 Hydrological Studies
In 2013 Red Eagle Mining carried out a hydrogeological study for the Environmental Impact Assessment
(EIA) submission, which included the drilling of, and equipping of piezometers in monitor holes to provide
the necessary data for groundwater studies.
The map in Figure 16.24 shows the water wells and monitor hole locations. The hole collar locations are
shown in Table 16.4.
Figure 16.25 and Figure 16.26 show the drilling of the water wells.
Page 16.30
As an addition
AMENDED to theTECHNICAL
NI 43-101 REPORT program, and as part of the Feasibility Study investigations, a
main hydrogeological
site was selected to the north west of the proposed process plant site in a known fracture zone within the
granodiorite country rock (a spring is visible in that area), to establish a water well. An adjacent
piezometer hole was also drilled to obtain information on the drawdown and recharge of the water well.
The water well (W-2) was drilled through the saprolite cover (approximately 50 m deep) into the underlying
granodiorite to a final depth of 75 m, to allow extraction of water from the expected fractured bedrock. The
adjacent piezometer hole (PZ-8) was drilled to 60 m. The holes were both drilled vertically.
From inspection and flow tests made using air lift techniques, it was clearly evident that the hole had
insufficient yield to allow the installation of a pump. The decision was made to maintain the hole for
monitoring purposes use only.
In 2014 Red Eagle Mining carried out a geotechnical and hydrogeological drilling program for the
Feasibility Study. This program was designed and supervised by Golder as part of their mine wide water
balance and geotechnical study. Included in the drilling program was a water well that was drilled directly
into the shear zone with data capture planned to establish the anticipated inflows to be encountered
during mining operations. A monitoring hole was drilled adjacent to the water well and equipped with a
piezometer (Hole 5) to capture drawdown and recharge rate data.
Figure 16.24 Geotechnical and Hydrological Drill Program Locations
Page 16.31

Table 16.4 Hole Collar Locations
Hole Ref: Easting Northing Elevation Depth

PZ-8 856,788 1223,504 2,482 60 m
W-2 856,764 1223,501 2,486 75 m
15 857,279 1223,205 2,470 172.60 m
5 857,250 1223,189 2,465 80.75 m
Figure 16.25 Drilling of Piezometer Pole PZ-8 (distant) and Water Well W-2 (foreground)
Page 16.32

Figure 16.26 Drilling of Water Well 15
The design of Hole 15 was based on the existing geological information obtained from exploration holes in
the vicinity and Red Eagle Mining’s detailed knowledge of the shear zone deposit. Figure 16.27 shows
the geological section for hole 15 and other drill holes from the exploration program in that area. The
Water Well (15) was drilled vertically through the saprolite cover and shear zone and into the footwall
granodiorite to a final depth of 172.6 m. This provided sufficient depth below the shear zone for a sump to
be established and a pump was planned to be installed at this depth. The hole was core drilled to HQ size
and then reamed to a final 12.25'' diameter. The hole was then cased with 8'' steel pipe casing, gravel
packed and perforated steel screened sections 6 m long, installed in the borehole through the shear zone.
This casing diameter allowed for a 6'' diameter submersible pump which was installed for flow tests.
Hole 5 was drilled vertically to a depth of 80.75 m and equipped with a piezometer.
Page 16.33
AMENDED NI 43-101 TECHNICAL REPORT Geological Section Through Hole 15

Figure 16.27
Pump tests were carried out late July 2014, a pump was selected with sufficient power to overcome the
static head of approximately 150 m, this displaced the water quickly and there was too little recharge in
the hole to enable a steady flow to be obtained and measured. Consequently the equilibrium conditions
necessary for steady flow rate measurement was not able to be achieved.
The results of several test runs established that for the water level to recharge in the hole with a 15 m
increase in elevation, took three to seven hours. This equated to extremely low inflows ranging from 2.5 to
1.0 L/min. This shows that the water in the shear zone is held as natural porosity and that the hydraulic
conductivity is very low. The pump tests were simply draining the water from the shear zone in the
immediate vicinity of the borehole over an ever increasing distance from the hole, hence the reducing
flows. Measurements taken from the adjacent piezometer Hole 5 showed no change in water levels and
confirmed the low hydraulic conductivity.
Golder concluded that the test data did not allow for a full interpretation, but values ranging from 0.2 to 2
L/sec can be expected inflow rates.
Page 16.34
The monitoring
of water REPORT
pumped from the existing Hilo Azul shaft (40 m deep) and underground workings
was undertaken in parallel to the hydrogeological and geotechnical programs. A submersible pump
discharged at surface and flow measurements are taken using a drop test. The result was a flow of 6
L/sec, this reduces over time as the water level in the workings and shaft is reduced. The discharge water
from Hilo Azul has a neutral pH ranging from 6 to 7.
With the information gained from the two water wells and Hilo Azul, this confirms that the granodiorite
country rock yields insignificant flows and has low conductivity, and the shear zone similarly yields low
flows and has low conductivity. The mine design for pumping has been conservatively sized for an initial
inflow of 5 L/sec., rising to 10 L/sec as the operations increase with depth. The mining contractors who
have submitted bids have also used similar inflow rates in pricing the development and production costs.
16.6 Development and Production Scheduling
Mine development and production were scheduled using Geovia’s MineSchedTM software (version
8.0.1.0.132). Development and production locations and rates were input based on the anticipated ramp-
up schedule and coordinated with bidding contractors.
The schedule includes a one year pre-production period. During that time, the portal and main decline will
be developed to the bottom of the primary exhaust ventilation shaft. At the same time, sublevel ramps
and haulage drifts will be developed as areas become accessible. Development of the first few stopes is
anticipated in the 12th month of construction, which will allow stockpiling of ore so that production can
begin in the 13th month. This fits with the planned process plant construction schedule, with
commissioning in the 13th month.
Production will start in Year 1, focusing on high-grade zones. Production will ramp up relatively quickly,
allowing the processing of 1,000 tonnes per day in Year 1. The following subsections describe the mine
development and mine production schedules.
16.6.1 Mine Development Schedule
Development plan centerlines and development rates were entered into Geovia’s MineSched software.
Precedents were used to ensure that development was completed in a sequential manner. The centerline
design is shown in Figure 16.1 and Figure 16.2.
The development schedule allows for construction of the portal and the first 7.75 m of underground
development in the first month of project construction (month -12). The second month of construction
(month -11) uses an advance rate of 1.5 m/day, estimated for the slow advance of development through
the weathered saprolite and schist. As more acceptable rock is encountered the rate is increased to a
maximum of 4.0 m/day. As areas for secondary development become available (haulage drifts and attack
ramps), additional development crews and equipment will be added to increase the overall development
rate. The maximum development rate for secondary development is assumed to be 9 m/day. This is
increased later in the mine life to 12 m/day, which assume an additional crew will be available at least part
time. The advance rates are adjusted to the amount of development required and are significantly lower
than those proposed by the mining contractors.
Page 16.35
The attackNI
AMENDED ramps TECHNICAL
will
43-101 have a 2.5 REPORT
m wide by either 2.5 m high or 5.0 m high mining profile. Since these
attack ramps are much narrower than other development, a rate of 3 m/day is used. Ventilation drifts are
also developed at a rate of 3 m/day, and ventilation raises and shafts assume a 4 m/day mining rate, and
assume development using raise bore machines or Alimak raise construction methods. The mining
contractors have the capability and experience for both methods.
Table 16.5 shows the development schedule through the life of the mine.
Table 16.5 Yearly Development Schedule
Units Yr -1 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Total
Portal (Portal costs are in Capital) m 30 - - - - - - - - 30
Sublevel Ramp m 484 1,810 2,557 576 795 1,954 370 820 1,738 11,104
Haulage Drift m - 302 155 - 704 173 153 109 218 1,813
Main Ramp m 1,106 640 365 365 365 366 730 444 - 4,381
Ventilation Drift m 8 53 106 - 96 24 8 43 46 383
Ventilation Raise m - 171 200 - 147 - 63 57 177 815
Attack Ramp m - 938 239 2,696 1,634 1,098 721 610 1,184 9,120
Total m 1,627 3,914 3,622 3,637 3,742 3,614 2,044 2,084 3,362 27,646
Sublevel Ramp Tonnes 24,494 91,643 129,465 29,143 40,247 98,918 18,753 41,489 87,999 562,152
Haulage Drift Tonnes - 15,290 7,823 - 35,633 8,739 7,746 5,538 11,030 91,798
Main Ramp Tonnes 57,497 32,400 18,478 18,478 18,478 18,529 36,956 22,486 - 223,303
Ventilation Drift Tonnes 392 2,677 5,373 - 4,878 1,209 392 2,178 2,308 19,406
Ventilation Raise Tonnes - 3,018 3,529 - 2,604 - 1,106 1,014 3,130 14,400
Attack Ramp Tonnes - 14,658 3,740 42,125 25,536 17,150 11,260 9,534 18,494 142,497
Total Tonnes 82,384 159,686 168,408 89,746 127,376 144,545 76,213 82,239 122,960 1,053,556
16.6.2 Mine Production Schedule
Mine production was scheduled along with the development using Geovia’s MineSched software. Attack
ramps were used as precedents to ensure that required development was completed before a mining
location was scheduled. A total of 106 mining locations were defined. Each were setup to mine from the
bottom upward to represent the proper mining sequence.
Production rates were ramped up to 1,000 tonnes per day during the pre-production Year -1. A calendar
of 360 days per year was applied, making the annual production rate 360,000 per year. Each mining
stope was limited to 200 tonnes per day production, thus requiring five stopes to be producing in order to
fulfil the 1,000 tonne per day production target. With on-going backfill operations, this means that up to
ten locations may be active at one time (five in production and up to five being backfilled). Table 16.6
shows the yearly mine production. Stopes were ranked based on overall stope gold grade. Priorities were
applied based on the ranking providing higher-grade stopes to have priority over lower-grade stopes. It
should be noted that oxide and mixed (transition) ore is included in the schedule as the categories are
drawn for the resource model. The quantities, however, are very small and will not affect the flow of
production and processing.
Page 16.36

Table 16.6 Yearly Mine Production
Mine Production Schedule Yr -1 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Total

Oxide K Tonnes 0 15 - 0 1 21 22 8 8 75
g Au/t 2.60 5.12 - 1.75 3.47 4.07 4.20 2.68 2.29 3.96
K ozs Au 0 2 - 0 0 3 3 1 1 10
Mixed K Tonnes - 6 0 1 1 1 1 9 0 20
g Au/t - 6.55 2.40 3.63 3.59 3.58 3.40 2.86 2.13 4.16
K ozs Au - 1 0 0 0 0 0 1 0 3
Sulfide K Tonnes 9 298 320 321 318 295 293 304 193 2,351
g Au/t 3.65 6.96 7.58 5.03 4.63 5.41 3.64 3.12 5.11 5.20
K ozs Au 1.0 66.8 78.0 51.9 47.3 51.2 34.3 30.5 31.8 393
Total K Tonnes 9 319 320 322 320 317 317 321 201 2,446
g Au/t 3.63 6.87 7.58 5.02 4.62 5.31 3.68 3.10 5.00 5.15
K ozs Au 1.0 70.5 78.0 52.0 47.5 54.1 37.5 32.1 32.3 405
Internal Waste K Tonnes 1 40 40 38 40 44 43 39 27 312
Total Diluted Material K Tonnes 10 359 360 360 360 361 360 360 228 2,759
Mined g Au/t 3.13 6.11 6.74 4.49 4.11 4.67 3.24 2.77 4.42 4.57
K ozs Au 1.0 70.5 78.0 52.0 47.5 54.1 37.5 32.1 32.3 405
Total K Tonnes - 352 360 360 360 361 360 360 245 2,759
g Au/t - 6.21 6.74 4.49 4.11 4.67 3.24 2.77 4.25 4.57
K ozs Au - 70 78 52 48 54 37 32 34 405
K Ozs Rec - 68 75 50 45 52 36 30 32 388
Net Rec 0% 96% 97% 95% 95% 96% 95% 95% 96% 96%
Year -1 production is retained in a stockpile until the start of production (Year 1), during which the plant is
available. Yearly process production is shown at the bottom of Table 16.6. Recovery is varied based on
gold grade as defined by recovery methods.
16.7 Mine Equipment
Mining is expected to be contracted for the life of mine. The contractor will provide the equipment required
to achieve the development and production schedule shown in Section 16.6. Table 16.7 shows the
equipment and underground facility requirements that are anticipated to complete the schedule. This list
will be subject to change based on negotiations with the selected contractor.
Page 16.37
TableTECHNICAL
Equipment Requirements and Underground Facilities
Peak # of
Units Item Comments
4 20t Articulated Haul Truck Primary haulage for ore and waste out of the underground mine
2 Double Boom Jumbo Used for primary development
2 Single Boom Jumbo Attack ramp and ore development and ore production
2 3m3 LHD Truck load out of production ore and development mining
3 3.6t LHD Stope mucking and backfill
1 Bolter Development bolting for support
1 Service Truck Equipment maintenance
1 Lube Truck Equipment fuel and lube
1 Grader Ramp and road maintenance
1 Scissor Truck Utility and shot loading
1 Flat Bed Transporting supplies
7 4x4 Utility Vehicle Personnel transportation, surveying, sample transportation
6 25 Liter/sec Water Pumps Dewatering (3 to pump to the surface and 3 auxiliary pumps)
1 Leaky Feeder System Communications
2 High Voltage Transformers Electrical distribution
2 Refuge Chambers Emergency refuge
2 Primary Ventilation Fans Exhaust fans at primary exhaust shaft (placed in parallel)
4 Auxiliary Fans Fans along primary development ventilating active mining areas
Mine productivity is based on the mine operating schedule, equipment availability, and the operating
efficiency. The mine is intended to operate 24 hours per day using 2-12 hour shifts. Standby time
includes one hour for shift startup and shut down and an additional 0.25 hours for lineout and safety
meetings per shift. The safety shifts will not be daily, thus the 15 minutes per day is accumulated to allow
for safety meetings once to twice a week as needed. In addition, 0.5 hours for lunch, and 0.5 hours for
breaks has been accounted for. This gives an overall operator availability of 81.3%.
Equipment availability was started at 85% and allowed to decline by 1% each year down to 80%, where it
is retained through the life of the mine.
Overall productivity for equipment is based on first principle calculations based on the type of equipment
and its operating specifications. For instance, the size of a truck, loading time, cycle time, and spotting
times determine the theoretical productivity for a truck. However, operating equipment will experience
operational delays such as queuing at a loading unit, slowing for other traffic on the ramp, waiting for
blasting and clearing of smoke after a blast, etc. This is equivalent to using a commonly known 50 minute
hour. This is accounted for by providing an efficiency factor, which has been incorporated, based on the
type of equipment and operating characteristics.
Page 16.38
43-101 TECHNICAL
TheoreticalNIproductivity
AMENDED trucks is based on a 3 m3 LHD loading 20-tonne articulated haul trucks.
for loadingREPORT
A loading rate of 250 tonnes per hour was determined. It is assumed that the truck drivers will load
themselves, which means that there will be operational delays as the driver gets on board the LHD. Thus,
an efficiency of 65% is used to reduce the theoretical productivity and calculate the operating hours
required for LHD’s.
Haul truck productivity is based on the full cycle time. Cycle times were estimated from each stope to the
surface and back. The speed of trucks was determined from performance curves based on the haulage
gradient and a 2% rolling resistance. A speed limit of 24 kph was used for haul and return. A loading time
of 5.5 minutes was used, which includes an additional 2.0 minutes per load for the operator to load
himself, and the spot and dump time of 1.00 minute was added to the overall cycle time. The productivity
was reduced by a 70% efficiency to model operational interruptions.
Stope mucking operations will be carried out by 1.5 m3 LHD’s with a total capacity of 3.0 tonnes. A fill
factor of 95% was used to reduce the haulage capacity to 2.85 tonnes per load. The LHD travel speed
was assumed to be 8 kph for both haul and return. LHD haul cycles were estimated for each stope based
on the stope length and an average distance of 85m for attack ramps. An efficiency of 80% was used to
estimate the effective productivity.
Production drilling productivity was calculated based on development in ore for the first lift in a panel of
stopes and production drilling for the remaining lifts. The remaining lifts use less drilling and explosives in
comparison to development in ore. Development in ore assumed 2.5 m rounds for an average of
approximately 42 tonnes per round. A penetration rate of 29 m per hour was used and a setup time of
30 minutes per round was used and assumed to include moving time from hole to hole. An efficiency of
83% was used to calculate operating hours from the theoretical hours. It was assumed that 17% of ore
would be generated by development in ore.
Production drilling estimates also used a 29 m per hour drilling rate and an efficiency of 83%. A 10%
addition to operating time was estimated to reflect non-drill time. A total of 83% of material sent to the
plant is assumed to be produced by production drilling.
16.8 Manpower
A preliminary list of personnel required to achieve the production schedule has been compiled. This list is
shown in Table 16.8 and specifies the positions as reporting to either the contractor or mine operations.
This list is subject to negotiations with the selected contractor for mining.
Page 16.39

Table REPORT
16.8 Mine Personnel Requirements
Mining General Personnel Yr -1 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8

Mine Manager Mine 1 1 1 1 1 1 1 1 1
Mine Clerk Mine 1 1 1 1 1 1 1 1 1
Chief Mine Engineer Mine - 1 1 1 1 1 1 1 1
Mine Engineer Mine - 3 3 3 3 3 3 3 3
Mine Surveyor Mine 1 1 1 1 1 1 1 1 1
Surveyor Helper Mine - 2 2 2 2 2 2 2 2
Chief Geologist Mine 1 1 1 1 1 1 1 1 1
Ore Control Geologist Mine - 1 2 2 2 2 2 2 2
Core Drillers Mine 2 2 2 2 2 2 2 2 2
Samplers Mine - 2 3 3 3 3 3 3 3
Subtotal - Mine General Personnel Mine 6 15 17 17 17 17 17 17 17
Contractor Supervision
Contractor Mine Superintendent Contract 1 1 1 1 1 1 1 1 1
Mine Clerk Contract 1 1 1 1 1 1 1 1 1
Mine Foremen Contract 4 4 4 4 4 4 4 4 4
Mine Maintenance
Mechanics Contract 2 8 16 16 16 16 16 16 8
Welders Contract 4 8 8 8 8 8 8 4
Mine Electricians Contract 1 2 2 2 2 2 2 2 2
Servicement Contract 1 2 4 4 4 4 4 4 2
Mine Operating Personnel
Lead Miner - Development Contract 2 4 4 4 4 4 4 4 4
Miner's Helper - Development Contract 4 4 4 4 4 4 4 4 4
Lead Miner - Production Contract 4 4 4 4 4 4 4 4
Miner's Helper - Production Contract 4 4 4 4 4 4 4 4
Truck Drivers Contract 2 4 4 4 4 4 4 4 4
LHD Operators Contract 4 20 20 20 20 20 20 20 20
Total Personnel
Red Eagle Mine 6 15 17 17 17 17 17 17 17
Contractor Contract 22 62 76 76 76 76 76 76 62
Total 28 77 93 93 93 93 93 93 79
Page 16.40
AMENDED NI 43-101 TECHNICAL 17.0

REPORT RECOVERY METHODS
17.1 Process Design
17.1.1 Summary
process prior to the tailings being filtered. Part of the filtered tailings will be dry stacked in a tailings and
waste rock storage facility, the balance will be used as backfill in the mine. Filtrate will be recycled back to
the process plant to minimise the raw water requirement.
17.1.2 Design Philosophy
well Proven in industry.
The key project and ore specific criteria that the plant design must meet are:
 The plant is designed for an initial throughput of 360,000 tpa with provision for future
expansion to at least 720,000 tpa;
 Testwork shows that the ore is of medium hardness with average head grades over the
life of the project of 4.57 g/t gold and 8.5 g/t silver;
 Mechanical availability for the process plant of 91.3%;
 A level of automation to reduce the technical complexity of the plant with manual
operation where practical;
 Equipment selection for reliability and ease of maintenance; and
 Layout for ease of access to all equipment for operating and maintenance requirements
whilst maintaining a compact footprint that will minimise construction costs.
A detailed process design has been prepared incorporating engineering design criteria and key
metallurgical design criteria derived from the results of the metallurgical testwork.
17.1.3 Key Process Design Criteria
Table 17.1 presents the detailed process design criteria and mechanical equipment list.
Page 17.1

Table 17.1 REPORT
Summary of Key Process Design Criteria
Units Primary Source*

Plant Capacity tpa 360,000 MDA
Head Grade g Au/t 4.57 MDA
Head Grade g Ag/t 8.5 MDA
Design Gold Recovery % 96 Testwork
Design Silver Recovery % 69 Testwork
Crushing Plant Availability % 85 Lycopodium
Plant Availability % 91.3 Lycopodium
Bond Abrasion Index (Ai) 0.139 Testwork
Drop Weight (SMC, A*b) 41 Testwork
Bond Rod Mill Work Index (RWi) kWh/t 13.0 Testwork
Bond Ball Mill Work Index (BWi) kWh/t 15.9 Testwork
SG 2.73 Testwork
Grind Size (P80) µm 125 Lycopodium
SAG Mill Grinding Media kg/t 0.603 OMC
Consumption
Tower Mill Grinding Media kg/t 0.158 OMC
Consumption
Flotation Gold Recovery % 95.0 Testwork
Concentrate Regrind Size (P80) µm 15-20 Testwork
Pre-leach Thickener Solids Loading t/m2.h 0.65 Assumption
Leach Circuit Residence Time hours 48 Lycopodium
Leach Slurry Density % w/w 50 Lycopodium
Number of Leach Tanks 1 Lycopodium
Number of CIL Tanks 6 Lycopodium
Cyanide Consumption kg/t 0.39 Testwork
Hydrated lime Consumption kg/t 1.93 Testwork
Elution Circuit Type AARL Lycopodium
Elution Circuit Size t 2 Lycopodium
Frequency of Elution strips / week 6 - 12 Lycopodium
Cyanide Destruction Process SO2 /Air Lycopodium
Process
Page 17.2
NI 43-101 TECHNICAL
AMENDEDProjected
17.1.4 REPORT
Plant Recovery
Tests conducted on the six composite samples using the selected flotation/concentrate regrind/CIL
process showed a strong linear relationship between head grade and gold extraction. This relationship
was used to predict plant performance. Gold recovery modelling is based on the plant regrind achieving
the testwork regrind product size plus it includes a CIL solution loss of 0.01 g/t with a CIL pulp density of
50% w/w solids.
Results are summarized in Table 17.2 and Figure 17.1 with the anticipated gold recoveries in the plant.
Note that one outlier (Composite #4) was removed from the dataset because of unusually high recovery.
The exclusion of Composite #4 in recovery modelling provided a more conservative estimate of plant
performance. The overall relationship between mill head grade and projected gold recovery is:
 [Gold Recovery Incl. Solution Loss (%)] = 0.45 x [Gold Head Grade (g Au/t)] + 93.394
This relationship was developed for head grades of 2 to 10 g/t. For head grades above 10.5 g/t the
recovery is capped at 98% in the projected gold recovery model.
Silver assays in the composite samples ranged from 4.0 to 12.9 g/t and yielded laboratory extractions
ranging from 65 to 85%. Silver was not included in the modelling due to lack of silver reserve estimates.
An average silver recovery of 68.6% was applied in the design of the elution circuit and downstream unit
operations.
Table 17.2 Summary of Metallurgical and Anticipated Gold Recoveries
Roll Bottle Test Results Anticipated

Head Calc Tails Metallurgical Overall Plant
Sample ID Test No. Process
Assay Grade Assay Recovery Recovery
Au g/t Au g/t Au g/t Au % Au %
Composite 1 CY-49 Flot/CN 2.35 2.48 0.13 94.8 94.5

Page 17.3
TECHNICAL
AMENDED NI 43-101Figure 17.1 REPORT
Projected Gold Recovery vs Mill Head Grade
100.0
99.0
98.0
97.0
Gold Recovery (%)
96.0
95.0
94.0
93.0
92.0
91.0
90.0
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0
Head Grade (Au g/t)

Lab Leach Extraction Projected Gold Recovery
17.1.5 Selected Process Flowsheet
The process plant design incorporates the following unit process operations:
 Primary crushing with a single toggle jaw crusher (1,100 x 700 mm) to produce a
crushed product size of 80% passing (P80) 100 - 120 mm;
 A crushed ore surge bin (30 m3) with a nominal capacity of 1 hour process plant feed of
45 t;
 Single stage SAG mill (5.0 diameter x 3.5 m EGL – 1,200 kW) in closed circuit with
cyclones to produce a P80 grind size of 125 µm;
 Rougher scavenger flotation (6 x 8 m3 conventional cells) to produce a sulphides/gold

concentrate;
 Tower mill (150 kW) for regrind of the concentrate to a P80 grind size of 15 - 20 µm;
 Pre-leach thickener (16 m dia) to minimise carbon in leach (CIL) tankage and reduce
overall reagent consumption;
 A hybrid CIL circuit incorporating one leach tank and six adsorption tanks (430 m3 each)
with 48 h total residence time;
Page 17.4
 A 2TECHNICAL
AMENDED NI 43-101 tonne AARLREPORT
elution circuit with electrowinning and smelting to produce doré bars;
 Cyanide destruction using the SO2 / Air process (120 min retention); and
 Tailings pressure filtration (445 m2 filter area) to 16% moisture content.
A process flowsheet depicting the unit process operations is shown in Figure 17.2.
Page 17.5
Figure 17.2 Santa Rosa Gold Project Simplified Process Flowsheet

Page 17.6
17.2
AMENDEDProcess Description
17.2.1 Run-of-Mine (ROM) Pad
Ore is delivered by truck directly from the adjacent decline to a ROM stockpile. Sufficient area has been
allocated to allow for ore blending and a total capacity of 3,000 tonnes (three days of plant feed).
A front end loader (FEL) reclaims ore from the stockpile on the ROM pad and delivers ore to the ROM bin.
17.2.2 Crushing Circuit
ROM ore enters the crushing circuit via a small ROM bin fed by the FEL. A grizzly (500 mm aperture) is
fitted to the ROM bin. The grizzly is inclined to be self cleaning as far as possible and to facilitate oversize
removal using the FEL feeding the crushing circuit. Secondary breakage, if needed, will be managed on
the ROM pad.
ROM ore is withdrawn from the ROM bin at a controlled rate by a variable speed apron feeder (1,200 mm)
and discharged into the jaw crusher.
The primary jaw crusher has been sized for the planned expansion capacity of 720,000 tpa. In practice,
maximum particle size, not throughput dictates the crusher selection and as such the unit will not be
capacity constrained.
The jaw crusher product discharges onto a 1,000 mm wide conveyor feeding directly to the crushed ore
surge bin (45 t). An electromagnet suspended above the conveyor removes magnetic tramp metal from
the primary crushed ore.
Under normal operating conditions the crushing rate into the surge bin exceeds the ore reclaim rate to the
milling circuit. Excess crushed ore overflows the surge bin and is directed on to a conveyor feeding the
overflow stockpile. When the crushing circuit is off line, for example during periods of crusher
maintenance, ore from the overflow stockpile is loaded by FEL into the surge bin to maintain mill feed.
Page 17.7

Figure 17.3 Crushing Circuit Layout
17.2.3 Grinding and Classification Circuit
A single stage semi-autogenous grinding (SAG) mill in closed circuit with hydrocyclones was selected to
grind the ore and F80 of 100 mm to produce the target grind P80 size of 125 µm. The SAG mill is
equipped with a 1,200 kW variable speed drive. The mill rotation speed range is between 60 – 80% of
critical speed to handle varying ore competencies. In addition to standard charge weight and power
control algorithms, the mill is equipped with noise monitoring to alarm low mill charge levels. This circuit
provides stable and simple operation that is well understood and proven at many successful installations.
Crushed ore is withdrawn from the surge bin at a controlled rate by a variable speed apron feeder and fed
via the mill feed conveyor directly to the SAG mill. A weightometer indicates the instantaneous and
totalised mill feed tonnage.
Oversize material from the SAG mill trommel, consisting of pebbles and worn steel grinding media, reports
to the scats bunker and is returned to the mill by FEL via the surge bin. SAG mill grinding media is also
be added by FEL into the surge bin as required.
Page 17.8
The SAG mill

AMENDED TECHNICAL
trommel
NI 43-101 undersize REPORT
gravitates to the mill discharge hopper, where it is diluted with process
water and pumped to the hydrocyclone cluster for classification. Relatively large hydrocyclones (6 x
250 mm diameter) have been specified to minimise the number of cyclones in the cluster and to reduce
the potential for spigot blockages occurring from coarse SAG mill discharge material.
The combined cyclone overflow stream, with a nominal pulp density of 40% w/w solids, gravitates to the
flotation conditioning tank. The cyclone underflow is collected in the underflow launder and gravitates to
the feed chute of the SAG mill.
General maintenance lifts around the mill and cyclones are carried out by the site mobile crane. The
milling area layout accommodates crane access for all heavy lifts. A liner handler is provided for mill liner
change-outs.
The mill floor slab is sloped towards a collection sump. The mill hopper overflow and cyclone feed pump
dump lines are routed to discharge directly into the sump.
The mill shell structural design is specified to allow high ball charges. A conservative liner design will limit
grinding media trajectories such that impact will be on the toe of the charge at low mill charge levels.
The milling circuit design allows for a future pebble crusher installation in the unexpected case that dilution
of the feed with the more competent hanging wall material could reduce the SAG milling rate. In such a
scenario a pebble crusher will be required to maintain milling rates. Although not required when
considering the current mine plan, this design allowance has been made to ensure changes in ore
competency do not impact on the circuit throughput.
Page 17.9

Figure 17.4 Grinding Circuit Layout
17.2.4 Flotation and Regrind
Sulphide flotation is expected to recover 95% of the gold into a concentrate representing 10-20% of the
ore mass. The concentrate is reground to 15-20 microns to expose the gold for improved leach recovery.
Cyclone overflow slurry gravitates to the flotation conditioning tank where the slurry is diluted to 35% w/w
solids and flotation collector (PAX) will be added. The conditioned slurry gravitates to six conventional
8 m3 flotation cells arranged in a rougher – scavenger configuration with total residence time of
25 minutes. Flotation concentrate reports to the regrind circuit and flotation tails flow to the pre-leach
thickener feed box.
Page 17.10
The concentrate
regrind REPORTof a tower mill (150 kW) in closed circuit with hydrocyclones.
circuit consists
Regrind circuit cyclone overflow gravitates to the pre-leach thickener feed box where it is recombined with
the flotation tails stream ahead of the pre-leach thickener.
17.2.5 Pre-Leach Thickening
A pre-leach thickener has been included ahead of the CIL circuit to allow for adequate slurry dilution
ahead of flotation and provide high slurry density (50% solids) to the CIL circuit so both unit processes are
optimised. There are significant benefits with a higher and more constant leach feed density in terms of
reduced reagent costs and reduced overall circuit tankage volume required to achieve the target CIL
residence time.
The recombined flotation tails and re-ground concentrate slurries are de-aerated prior to entry into the pre-
leach thickener. Flocculant is added into the launder and feedwell of the thickener. Thickener underflow
is pumped to the CIL circuit. Thickener overflow reports to the grinding water tank to provide a separate
water circuit between grinding/flotation and cyanide leaching.
The pre-leach thickener has been sized to meet the throughput requirements of the expanded plant
capacity (720,000 tpa).
17.2.6 Leach and Carbon Adsorption
The leach characteristics identified during the metallurgical testwork program indicated that a 48 hour
leach is required to achieve optimal gold extraction. To obtain this retention time a circuit configuration of
one leach tank and six leach/adsorption tanks was selected. This is the minimum tankage required for
acceptable stage efficiency and for achieving target solution grades.
Thickener underflow is pumped to the leach tank via the vibrating trash screen. The trash screen removes
any misreporting coarse ore particles, wood fragments, organic material, plastics and lime slurry grits that
would otherwise accumulate in the carbon circuit and/or 'peg' the inter-tank screens.
The slurry pH is adjusted with hydrated lime added to the vibrating trash screen feed box. Sodium cyanide
solution is metered into any of the first four tanks to maintain the desired cyanide concentration in the
circuit.
Each tank is fitted with a dual impeller mechanical agitator to ensure uniform mixing. Compressed air is
sparged to the leach and CIL tanks to maintain a high dissolved oxygen profile.
The tanks are interconnected with launders and slurry flows by gravity through the tank train. Bypass
facilities allow any tank to be removed from service for agitator or screen maintenance.
Page 17.11
Fresh and NI
regenerated carbon is REPORT
added to the circuit at the last adsorption tank (Tank 7) and is advanced
by air lift counter-current to the slurry flow. An air swept intertank screen in each adsorption tank retains
the carbon. Loaded carbon from the first adsorption stage (Tank 2) is air lifted to the loaded carbon
recovery screen mounted above the CIL tanks. The carbon is washed and dewatered on the recovery
screen and reports to the acid wash column. Slurry and wash water from the carbon recovery screen
underflow return to Tank 1.
Leach tails from Tank 7 gravitate to the vibrating carbon safety screen via the tails sampler. The safety
screen recovers any carbon leaking through worn inter-tank screens or overflowing the tanks. Screen
underflow gravitates to the cyanide destruction circuit.
The tanks are located in a bunded area with a sloping concrete floor. Any spillage from the circuit reports
to one of two sumps and can be returned to the circuit or to the carbon safety screen ahead of the cyanide
destruction circuit.
Figure 17.5 Leach and Carbon Adsorption Circuit Layout
17.2.7 Acid Wash
Loaded carbon is acid washed in 2 tonne batches in a rubber lined carbon steel column with 3% w/w
hydrochloric acid (HCl) solution. Washing takes place six days per week during day shift. The dilute
hydrochloric acid is pumped through the column in an up-flow direction to remove contaminants,
predominantly carbonates, from the loaded carbon. This process improves the elution efficiency and has
the beneficial effect of reducing the risk of calcium-magnesium 'slagging' within the carbon during the
regeneration process.
After a two hour acid soak period the carbon bed is rinsed with four bed volumes of raw water to displace
any residual acid from the carbon. Dilute acid and rinse water is disposed of in the tailings collection
hopper. Acid-washed carbon is transferred to the elution column for stripping using raw water.
Page 17.12
AMENDEDAARL
Elution
NI 43-101
The AARL system was selected for elution as it provides flexibility in the number of stripping cycles per
week to suit gold production.
Carbon transferred to the elution circuit has a design loading of 2,700 g Au/t and 4,000 g Ag/t. A single
stainless steel elution column is provided to hold the two tonne batch of acid washed carbon. Strip solution
consisting of 2% NaCN and 2% NaOH is pumped from the strip solution tank through inline heat
exchangers into the base of the elution column.
The loaded carbon is pre-soaked in the cyanide / caustic solution for 30 minutes to prepare the gold for
elution. The carbon is then be eluted by hot strip solution (120 °C) which exits the column to the pregnant
solution tank. Outgoing pregnant solution passes through the recovery heat exchanger to heat the
incoming strip solution.
17.2.9 Electrowinning and Doré Smelting
Gold is electrowon from the pregnant solution within the security area of the goldroom. The pregnant
solution circulates through two parallel cells of 12 cathodes each in multiple passes to ensure a minimum
gold tenor in the barren eluate. Direct current is passed through stainless steel anodes and stainless steel
wool mesh cathodes to deposit gold and silver sludge on the cathodes. A sludging cell design with in-tank
washing of the cathodes has been selected to simplify the cathode handling process. Electrowinning
continues until the solution exiting the electrowinning cells is depleted of gold. Solution discharging from
the electrowinning cells returns by gravity to the pregnant solution tank.
Rectifiers, one per cell, are located in a non-secure area below the cells allowing maintenance access
without breaching gold room security. Rectifier remote indication and controls are located adjacent to the
electrowinning cells.
In normal operations electrowinning is completed in less than a 12 hour shift.
The system is configured to allow multiple pass electrowinning for operation when two strips per day are
processed. The option also exists to operate the electrowinning circuit in open circuit with one of the
pregnant tanks operated as a lean eluate tank.
The electrowon silver and gold sludge is removed from the cathodes by washing with high pressure water.
The resulting sludge is filtered in laboratory style pressure filters and dried in an oven. The sludge is then
direct smelted with fluxes in a natural gas-fired smelting furnace to produce doré bars. Slag from smelting
operations is returned to the milling circuit.
Based on the design carbon loading (2755 g Au/t and 3995 g Ag/t) smelting will occur every second day
yielding production of 27 kg of doré. The cast doré bars will carry approximately 41% gold and 59% silver.
In the early years of production with higher mill head grades, additional elution and doré smelting cycles
may be required each week and these can be accommodated within this production schedule.
Page 17.13
Fume extraction
equipment REPORT
is provided to remove gases from the cells, sludge drying oven and smelting
furnace.
17.2.10 Carbon Regeneration
After completion of the elution process, the barren carbon is transferred from the elution column to the
carbon dewatering screen prior to entering the feed hopper of the horizontal carbon regeneration kiln
(100 kg/h capacity). Any residual water in the feed hopper is also drained before the carbon enters the
kiln. In the kiln the carbon is heated to 650 - 750°C and held at this temperature for 20 minutes to allow
regeneration to occur. Regenerated carbon exiting the kiln is quenched by spray water on the carbon
sizing screen. The screen oversize (regenerated, sized carbon) is returned to the CIL circuit while the
quench water and fine carbon reports to the carbon safety screen. The fine carbon retained by the safety
screen is collected in a bin for eventual sale to realize any adsorbed gold values.
17.2.11 Cyanide Destruction Circuit
The SO2 / air process has been selected to reduce weak acid dissociable cyanide (CNWAD) in the plant
tailings stream to less than 1 ppm. After passing through the carbon safety screen the CIL tailings slurry
gravitates to the cyanide destruction circuit. This circuit consists of two agitated tanks which can operate in
either series (normal operation) or parallel configuration; each tank has 1 hour residence time.
The SO2 source for detoxification is sodium metabisulphite (SMBS). Oxygen is supplied by sparging air
into both tanks. The detoxification process requires the presence of a soluble copper catalyst which is
supplied by metering copper sulphate solution directly from a mixing tank. Hydrated lime slurry from the
CIL distribution ring main is added to maintain pH in the range of 8.0 to 9.0.
Probes measuring Eh and pH are used to control dosing of SMBS and hydrated lime, respectively.
17.2.12 Tailings Disposal
Tailings from the detoxification circuit are pumped to the tails surge tank at the mine portal for filtration.
The filtration plant consists of two recessed plate filter presses (one operating and one standby). Each
press has the capacity to handle 100% of the tailings.
The operating cycle consists of filter closing and clamping, filter feed, air blow, cake discharge, and finally
cloth washing. Filtrate is collected and pumped to a clarifier system. The cloth-wash discharge is
collected separately and pumped back to the clarifier. Clarified water is returned for reuse in the process
area. The small amount of sludge underflow from the clarifier is periodically pumped back to the filters via
the tails surge tank.
The filtered tailings contain nominally 16% moisture. A front end loader collects the filtered tailings which
are hauled via surface trucks to the dry waste management facility immediately east of the plant site or
backhauled via mine trucks underground as mine stope backfill.
Page 17.14
AMENDEDFuture
Expansion
NI 43-101
The design provides for future expansion to at least 720,000 tpa. Critical equipment has been sized to
handle the increased throughput (jaw crusher, SAG mill, thickener, elution circuit and gold room). The
layout of the plant allows for:
 Addition of a ball mill in order to maintain the target grind;
 Installation of a pebble crusher;
 Twinning of flotation and concentrate regrinding;
 Installation of three new leach tanks. The leach tank in the initial circuit is designed to
convert to an adsorption tank when the circuit is expanded; and
 Addition of a third press filter for tailings.
17.3 Reagents and Consumables
Table 17.3 summarises the reagents and consumables for the Santa Rosa Gold Project. Sufficient stocks
will be maintained on site (2-4 weeks) to ensure that supply interruptions due to transport or weather do
not impact production.
Page 17.15
AMENDED NI 43-101 TECHNICAL Table

REPORT17.3 Reagent Summary
Description Application Mode of Delivery Method of Handling

Hydrated Lime pH control in CIL and 1 tonne bulk bags Mixed to 25% w/w, distributed via ring
Detox circuits main
Potassium Amyl Sulphide flotation Mixed to 10% solution, meter pumped to
Xanthate (PAX) collector. flotation
MIBC Flotation frother 200 L drums or isotainers Meter pumped to flotation
Copper Sulphate Catalyst in Detox 25 kg bags Mixed to 20% w/w, metered to flotation
and detox.
Sodium Cyanide leach reagent for CIL and Dustless pellets in 1 tonne Mixed to 20%w/v, metered to CIL and
elution boxed bulk bags elution
Caustic Soda pH modifier in elution 25 kg bags of pearl pellets Mixed to 20%w/w, metered to elution
circuit
Hydrochloric Acid Carbon acid wash reagent 32% concentrated acid delivered Metered to acid wash feed line to obtain a
in 1,000 L isotainers 3%w/w solution
Activated Carbon Gold adsorption in CIL 500 kg bulk bags To carbon sizing screen (vendor package)
Sodium Reagent for Detox 1 tonne bulk bags Mixed to 20% w/w, metered to detox
Metabisulphite circuit
Flocculant Flocculant 25 kg bags Mixed and diluted in vendor package,
dosed to preleach thickener
Grinding Media SAG mill balls 2 tonne bags Charged via FEL to ore surge bin.
Compressed heat source Trucked and pumped into site Reticulated to elution heater, carbon kiln
Natural Gas storage tank and smelting furnace
Antiscalant Grinding water circuit
17.4 Services
17.4.1 Raw Water
Raw water for the project is diverted from the spring source and catchment area of the La Veta creek to a
three day capacity storage pond located east of the plant site. Additionally, seasonal precipitation plus
surplus water from the La Veta creek system is collected in the seepage collection pond, which will be
pumped back to process water storage tank at the plant. The seepage collection pond will have a constant
overflow to sustain the minimum flow rate requirement for the La Veta creek (7.2 m3/h).
For a year with an average rainfall the runoff entering the project site will be on an average between 22 to
44 m3/h.
Raw water is used to feed the potable and stripping water treatment plants as well as reagent mixing, and
gland water.
The estimated plant raw water make-up will be approximately 14 m3/h.
Page 17.16
AMENDEDFire
17.4.2 WaterTECHNICAL REPORT
NI 43-101
Fire water for the process plant is drawn from the bottom third of the raw water tank (270 m3 reserve).
The fire water pumping system consists of:
 an electric delivery pump to supply fire water at the required pressure and flowrate;
 a diesel driven pump that will automatically start in the event that power is not available
for the electric pump; and
 an electric jockey pump to maintain fire ring main pressure.
Fire hydrants and hose reels are placed throughout the process plant, fuel storage and plant offices at
intervals that ensure complete coverage in areas where flammable materials are present.
17.4.3 Potable Water
Water from the raw water tank supplies the potable water treatment plant. Water treatment includes
filtration, carbon contacting, and chlorination. Additional ultra-violet sterilisation units will be installed on
outgoing potable water distribution headers if required. Potable water is reticulated from the potable water
storage tank to the site ablutions, safety showers and other potable water outlets.
Potable water is also pumped to the mine services facilities.
17.4.4 Process Water
The process water is separated into two circuits: the grinding water circuit, and the process water circuit
(used in the CIL section). The two circuits are designed to operate separately to avoid cyanide and high
pH in the flotation circuit. Separate storage tanks of 80 m3 and 125 m3 are provided.
Grinding water consists primarily of recycle from the pre-leach thickener overflow with make up from raw
water and any surplus mine discharge water. The grinding water is fed to the grinding circuit, flotation
circuit, regrind circuit, and pre-leach thickener feed dilution.
The process water consists primarily of the tailings filtrate. Grinding water tank overflow also reports to the
process water tank. Seepage pond, monitoring and event pond water can also be returned to the process
water tank.
Any overflow from the process water tank discharges into the monitoring pond. If the cyanide levels are
too high in the monitoring pond the water is pumped back to the process water tank and onto the cyanide
detox circuit to adjust levels in the plant effluent.
Duty and standby pumps are provided for raw water, grinding water and process water. Antiscalant is
added to condition the grinding water and reduce fouling of pipelines, spray nozzles and screen decks.
Page 17.17
AMENDEDPlant,
17.4.5 TECHNICAL
Instrument,
NI 43-101 REPORT
Flotation, and Air Supply
Plant and instrument air is supplied from two high pressure screw compressors. The air is dried before
distribution with one air receiver supplying both plant and instrument air.
A low pressure blower is dedicated to the flotation circuit. Three positive displacement low pressure
blowers provide air to the CIL tanks (two operating one standby) and can service the flotation circuit when
that blower is offline.
17.5 Instrumentation and Control
The level of instrumentation and control has been selected to provide a basic regulatory control to
maintain steady operation with minimal process excursions. Following industry practice for similar size
plants, a supervisory control and data acquisition (SCADA) and programmable logic controller (PLC)
architecture was selected for the plant wide process control system. It is a reliable and low cost approach.
The SCADA/PLC integrates original equipment manufacturer (OEM) controllers in the field into a uniform
operator interface located in the main control room. Where vendor packaged process control systems are
not available, logic will be developed at the SCADA level for process control and monitoring.
The control room houses two PC based operator terminals which both act as the control system (SCADA)
servers as well as engineering / operator stations. The system includes a historian capability for data
analysis and reporting.
In general the status of process plant drives is reported to the SCADA and is displayed in the control
room. Local control stations are located in the field in proximity to the relevant equipment. These will, as
a minimum, contain Start and Lock-Off-Stop (LOS) pushbuttons which are hard-wired to the drive starter.
Local selection allows each drive to be started and stopped by the operator in the field via pushbutton.
Plant drives are generally started remotely from the control room. Remote selection requires the
equipment to be started from the control room. Status indication of process interlocks as well as the
selected mode of operation is displayed in the control room.
Safety interlocks such as emergency stops and thermal protection are hardwired and will apply in all
modes of operation. All software process interlocks also apply in both Local and Remote modes.
17.6 Metallurgical Accounting
A weightometer on primary crusher discharge conveyor measures the primary crushed ore tonnage. A
second weightometer on the SAG mill feed conveyor determines mill feed tonnes.
The pre-leach thickener underflow stream is pumped to a two stage cross cut feed sampler then gravitates
into the vibrating trash screen feed box. The sampler collects representative samples of the leach feed.
Leach tails from Tank 7 gravitates to a two stage cross cut feed sampler for representative samples of the
tails.
Page 17.18
Density and
AMENDED NI flow TECHNICAL
meters
43-101 REPORT
on the leach feed allows the dry tonnage of solids to be determined as a cross
check on the mill feed tonnage determined from the mill feed weightometer. In conjunction with the leach
feed and tails samplers, the mass flow measurements allow the gold recovered in the CIL to be
calculated.
Regular ‘in circuit' surveys will allow reconciliation of precious metals in feed compared to doré production.
Weights and assays of the doré bars will be reconciled against the calculated gold recovery.
Reconciliation of the amount of reagents used over relatively long periods will be achieved by delivery
receipts and stock takes. On an instantaneous basis, reagent usage rates of cyanide, elution and
detoxification reagents to unit operations are measured (l/min) and accumulated (m³ ) using flow meters.
Page 17.19
18.0REPORT
AMENDED NI 43-101 TECHNICAL PROJECT INFRASTRUCTURE
18.1 Project Infrastructure
18.1.1 Infrastructure Scope
The Santa Rosa Gold Project consists of an underground decline accessed mine, processing plant, and
plant infrastructure. As part of this Feasibility Study, a site plan was developed for the project site. Major
plant infrastructure consists of the following:
 Main Access Road from the concession gate to portal pad;
 44 kV Power transmission line from EPM substation (8.9 km long);
 44 kV Switch Yard;
 Main Switch Room;
 Reagents Switch Room;
 Mine Services and Filter Plant Switch Room;
 Dry Waste Management Facility (DWMF);
 Sedimentation Pond;
 Seepage Pond;
 Monitoring Pond;
 Event Pond;
 Reagent Storage Building;
 Plant Administration Building;
 Assay and Metallurgical Laboratory;
 Plant Workshop and Main Warehouse Building;
 Mine Truck shop/ Warehouse Buildings; and
 Diesel fuel storage and filling station.
Page 18.1
AMENDED NI 43-101 TECHNICALFigure

REPORT18.1 Overall Site 3D View
18.1.2 Site Access
The Santa Rosa Gold Project is located near the town of Santa Rosa de Osos, 73 km north-west of the
city of Medellin, in the province of Antioquia. Primary access to the site is via paved Highway No. 25
north-northeast through Copacabana and Don Matías for approximately 65 km to a turn-off located 12 km
south of Santa Rosa de Osos. From the turn-off to the east, it is approximately 8 km to the proposed mine
portal via an unpaved road.
The existing Site Access road is in good condition and does not require major upgrading but some
sections will have to be improved in order to facilitate shipping larger equipment to site. The last 400 m of
the road from the existing concession gate to the Santa Rosa Site will require complete realignment in
order to minimize cut and fill quantities and connect directly to the south end of the proposed mine portal
area.
18.1.3 Site Plan
The proposed process plant site is bounded by the underground mining area to the south, the La Veta
creek valley to the east, and the ridge line separating the San Francisco valley from the La Veta creek
valley to the north and west. The topographic relief in the project area is moderate with gentle to relatively
steep-sided valleys and hills. Elevations range between 2,300 m and 2,500 m above sea level.
Page 18.2
The general
NI stratigraphic column REPORT
for the site consists of a surface residual soil composed of silt and clay
deposits to a depth of 2-3 m underlain by a coarser saprolite unit of 30-50 m thickness, and fresh
granodiorite bedrock. The proposed plant site will be located on a mixed cut and fill section, with
maximum cut depth of 35 m and maximum fill depth of 15 m. The heavy equipment foundation structures
will be located on the cut platform and the ponds and lighter buildings will be located on compacted fill
material. The majority of the foundations will be reinforced concrete spread and strip footings with rafts for
the heavy equipment and other settlement sensitive structures.
The following factors were considered when developing the site plan layout:
 Minimizing the environmental impact and visibility;
 Reduced haul truck travel distance from the mine portal area to the ROM pad / primary
crusher;
 Usage of existing access roads;
 Equalizing cut and fill material to avoid fill import or excessive cut to waste;
 Ensure all heavy equipment foundations are supported on native undisturbed soil with
sufficient load bearing capacity;
 Optimized ore flow through the process plant;
 Compact plant layout to reduce overall footprint, which minimizes electrical cabling,
piping and service roads thus reducing capital costs;
 Locating the filter presses as close as possible to the mine portal and the DWMF.
The mine portal is situated in the southern extremity of the La Veta creek valley. All the mine service
buildings (truck shop, warehouse) have been located immediately north of the portal and adjacent to the
main haul road to the primary crusher. The filter presses, the mine area substation, and the diesel fuel
storage area are located along the eastern edge of the open space in front of the portal. In order to keep
the project site compact all the major process plant infrastructure is located immediately north of the mine
service buildings on a platform cut into the ridge separating the San Francisco valley from the La Veta
creek valley.
Page 18.3
The crusher
AMENDED NI area TECHNICAL
43-101has REPORT
been located as close as possible to the mine portal with an elevation 9 meters
above the adjacent mine service and reclaim areas. The rest of the processing plant will be constructed
north-northwest of the crusher and reclaim areas 7 metres below the portal and reclaim areas. The heavy
equipment has been located as much as possible towards the west edge of the site on a cut platform in
order to provide sufficient bearing capacity and minimize settlement under the critical equipment and
structures. Lighter structures (gold room, reagents storage, ponds) have been sited on the east edge of
the plant site and are supported primarily on a compacted fill material. The plant administration building,
assay and metallurgical laboratory, and the plant workshop and main warehouse building are located at
the north edge of the plant site. On the east the plant site area is bounded by the la Veta creek valley,
which is the proposed location for the DWMF.
18.1.4 Site Roads
The site roads will be constructed of compacted rockfill overlying competent native soil. The design cut
slopes are 75 degrees up to 10 m slope height. For cuts more than 10 meters 1.5 m wide bench will be
required every 10 meters. The fill slopes will be 2.5H : 1.0V. The maximum vertical slope will be 10%.
Dust suppression shall be applied to the gravel surface to minimize dust generation.
Page 18.4

Figure 18.2 Overall Site Layout
Page 18.5
18.2
AMENDEDPlant Area
NI 43-101 Buildings
TECHNICAL REPORT
18.2.1 Buildings General
The major building structures will be made of structural steel with uninsulated roof and wall cladding. The
building foundations will consist of cast in-situ conventional reinforced concrete footings. Secondary
buildings will be of pre-engineered, pre-fabricated, or portable module type, where applicable. The
ancillary buildings will require varying degrees of air conditioning and ventilation. The process plant facility
will be entirely outdoors, and only the main control room, the electrical switch rooms, and the laboratory
building will be air conditioned. The gold room will be ventilated only. Fire protection, lightning protection
and smoke detection have been considered for various buildings.
18.2.2 Plant Workshop and Main Warehouse
The Plant Workshop and Main Warehouse building is located at the north end of the plant site area.
This building will house the main work area for equipment maintenance and repairs for the crushing
plant, mill, regrind, and recovery plant together with a warehouse containing the critical spares for the
processing plant. It will also provide an office area, tool room, and toilet facilities. The building will be a
single storey steel frame structure (32 x 12 m) with uninsulated cladding. The steel structure will be
supported on reinforced concrete spread footings.
18.2.3 Reagents Permanent Storage
The Reagents Storage building is located east of the plant workshop and warehouse building and will
house the storage areas for sodium cyanide, sodium hydroxide, hydrochloric acid, hydrated lime, carbon,
sodium metabisulphite, flocculants, and antiscalant. Most reagents are delivered on a monthly basis with
the exception of hydrated lime, which will be delivered bi-weekly. Hence, the building is designed for a
month’s worth of reagent storage. It will be a steel frame open structure (20 x 8 m) with uninsulated metal
roofing and cladding on the east side only. The steel structure will be supported on conventional
reinforced concrete spread footings.
18.2.4 Gold Room
The gold room is located east of the CIL tanks and west of the monitoring pond. This will be a steel frame
building (14 x 8 m) with metal roofing, totally enclosed by cladding and security mesh. The steel structure
will be supported on reinforced concrete spread footings. The interior and exterior of the building will be
under surveillance via cameras and closed circuit television.
18.2.5 Tails Filtration Building
The tails filtration building will be located opposite the mine portal and south of the DWMF haul road. It will
house the two filter presses producing the filter cake to be deposited in the DWMF or mixed with cement
to be used as a backfill in the mine. The building will be a steel frame (42 x 10 m) with uninsulated metal
roofing and cladding, supported on concrete walls with reinforced concrete strip footings.
Page 18.6
AMENDEDPlant
Air Compressors/
NI 43-101 Blower Shed
The plant air compressors/ blower shed is located west of the detoxification area in the south west corner
of the processing plant. The building will house two compressors and two blowers servicing the
processing plant. The shed will be constructed as a steel frame with metal roofing and partial side
cladding and will be supported on concrete spread footings.
18.2.7 Filter Area Compressors Shed
The filter area air compressors/ blower shed is located south of the filter press building in the portal pad
area. The building will house two compressors servicing the filter presses. It will be a steel frame building
with metal roofing and partial side cladding and will be supported on concrete spread footings.
18.2.8 Guard House
The guard house will be located at the main access road entrance and adjacent to the mine portal. It will
be a modular type building (4 x 4 m) with sandwich panel walls and roof. The guard house will be
supported on a concrete slab on grade.
18.2.9 Plant Administration Building
The plant administration building is located in the north west corner of the plant site, adjacent to the assay
and metallurgical laboratory and the plant workshop and main warehouse building. This building will
consist of two modified 40 foot shipping containers with a steel support structure covering the space
between the containers. It will contain the plant offices, meeting room, toilet facilities, break room, first aid
area, and a reception area.
18.2.10 Assay and Metallurgical Laboratory
The assay and metallurgical lab will be located between the plant administration building and the plant
workshop and main warehouse building. This will be a full service laboratory facility and will house the
following areas: fire assay lab area; wet lab area; sample preparation area; data input and weighing area;
metallurgical lab area; sanitary facilities; and an office area. The laboratory will be sized to process
50 samples per day, solids, solutions and carbon samples. These will be samples from the underground
and surface drilling; samples from the processing operations; and various environmental samples. The
building will consist of two modified 40 foot containers with a steel support structure spanning between the
containers.
Page 18.7
AMENDEDPlant
18.2.11 TECHNICAL
Control
NI 43-101 Room REPORT
The control room serves as a central monitoring station of the process plant. It will be a 4.5 x 6 m
prefabricated building with sandwich panel walls and roof located on top of the CIL tanks for optimum
visibility and control. The control room will consist of an operators’ room and a server room. The
operators’ room will house two PC based operator interface terminals for operating and monitoring all
process plant and one printer for recording all key process and maintenance parameters. The server
room will house the UPS, patch panel for the server, Ethernet switches, and fibre optic breakout tray.
18.2.12 Crusher Control Room
The crusher control room will house the crusher control station and will be located in the primary crusher
area. It will be a prefabricated building with sandwich panel walls and roof.
18.2.13 Main Switch Room
The main switch room will house the LV switchgear and the motor control centres (MCCs) for the feed
preparation and milling areas, flotation and water services, and screening and air services. It will also
contain the lighting and small power distribution panels and the area PLC and marshalling panels. The
main switch room will be located in the midst of the process plant between the SAG mill and the gold room
and minimizes cable lengths and improves MV efficiency. It will be a pre-fabricated steel constructed
building with double cladding and insulation. It will also be fitted with a double door and a single door. The
building will be supported on a structural steel frame on reinforced concrete strip footings.
18.2.14 Reagents Switch Room
The reagents switch room will house the motor control centre for the leaching, desorption, goldroom, and
reagents areas. It will also contain the lighting and small power distribution panels and the dedicated area
PLC and marshalling panels. The reagents switch room will be located directly north of the reagent mixing
and storage area. The building will be a modified 40 foot shipping container supported on a structural steel
frame with reinforced concrete strip footings.
18.2.15 Filter Plant Switch Room
The filter plant switch room will house the motor control centre for the filter plant. It will also contain the
lighting and small power distribution boards, the PLC remote rack and marshalling panels. The filter plant
switch room will be located in the portal pad area north of the tails filtration building. It will be a pre-
fabricated steel constructed building with double cladding and insulation. It will also be fitted with a double
door and a single door. The filter plant switch room will be supported on a structural steel frame on
conventional reinforced concrete spread footings.
Page 18.8
18.3
AMENDEDMine Area
NI 43-101 Buildings
TECHNICAL REPORT
Mining operations buildings will be located at the mine-portal area. These will include a truck shop,
warehouse, and offices, all of which are provided and maintained by the mining contractor. In addition,
the owner will provide and maintain offices for mine management, engineering, and geology personnel, in
conjunction with other Red Eagle Mining facilities which are currently on site on site.
18.3.1 Truck Shop
The truck shop will be provided by the mining contractor, and will include the necessary service bays and
an office for maintenance, supervision, and planning. The building will be a steel structure with metal
cladding and a concrete slab on grade.
18.3.2 Warehouse
A mobile equipment and spare parts warehouse will be attached to, or adjacent to, the truck shop. The
building will be a steel structure with metal cladding and a concrete slab on grade. The facility includes
inside storage for parts and supplies, an office, and a tool crib/small parts area. A fenced storage yard
located adjacent to the warehouse will be used to store large items or bulk materials which can withstand
exposure to the elements. The outside storage area will have a compacted, gravelled base and security
fencing.
18.3.3 Explosives Storage
Transportation, permits, management, and storage of explosives will be the responsibility of the mining
contractor. Only explosives sufficient for a few days of use will be stored on site. This will include
detonators, boosters, and bulk explosives or ANFO. Each of these types of explosives will be stored in
separate magazines on the surface. An approved small magazine and an adjacent large building already
exist adjacent to the old Hilo Azul shaft (a legacy of former artisanal miners on the property). These
facilities will be converted to approved magazines suitable to the contractor’s requirements and will be
surrounded with security fencing. The contractor will be required to provide security at all times while
explosive materials are stored on site.
18.4 Building Fire Protection Systems
Systems to be provided for personnel and property protection include: smoke/heat detectors and manual
pull stations, fire extinguishers, fire hydrant coverage of all process plant areas; process plant buildings,
and internal fire hose coverage for all enclosed building areas.
Fire hose cabinets and external fire hydrants will be located so that all interior areas of the buildings are
within reach of a fire hose stream.
Page 18.9

A firewaterNIheader REPORT
system will be provided at the site and will cover the process plant and ancillary
buildings, along with fire hose coverage throughout the facility, supplemented by hand held fire
extinguishers. A dedicated fire hydrant will be installed to provide fire hose coverage throughout the
reagent area, with hand held fire extinguishers. Fire protection coverage for the crusher area will be
provided by site fire hydrants supplemented by hand held fire extinguisher.
For electrical rooms ionization type smoke detectors will be provided, integrated with an automatic dry fire
protection system with additional hand held fire extinguishers.
Hand held fire extinguishers will be provided for the control rooms.
18.5 Sewage Treatment
A septic system will be utilized for sewage disposal. Septic tanks will be located at the process plant, and
near the mine portal for mining operations. The septic tank sludge will be removed by vacuum truck at
regular intervals.
18.6 Security System and CCTV Monitoring
Process plant and goldroom area accesses will be controlled and monitored 24 hours per day. The
goldroom will also be monitored by remote motion, vibration and temperature sensors to detect
unauthorized intrusion. High security cameras will be located in the goldroom, and at the plant guard
house.
In addition to the high security system, an independent CCTV system will monitor the crusher and ore
feeders, with the monitors located in the main control room. A video recorder will capture all relevant entry
/ exit details in high security areas and log all security alarms in chronological order. Security signals will
be transmitted via secure dedicated cables with the system backed up by dedicated UPS.
18.7 Site Services
18.7.1 First Aid
In addition to the first aid post at the existing camp / administration site, a first aid post will be located in
the plant administration building and will be staffed by a qualified registered nurse 24 hours per day. An
ambulance will be stationed on the project site 24 hours per day. The nearest full-service medical facility
is in Santa Rosa de Osos, approximately 20 km (30 minutes) from the project site (Hospital San Juan de
Dios).
18.7.2 Communication Systems
An existing communications tower installed at the Santa Rosa exploration camp will provide internet and
telephone services. This system is synchronized to the Red Eagle Medellín and Vancouver office servers.
Connections from the existing communications system to the process plant and mine-area offices will be
made by installing repeater dishes as necessary.
Page 18.10
Hand-held NI
AMENDED and TECHNICAL
base-station
43-101 REPORT
radios will be provided for operators for on-site communications. Surface
mobile equipment will be equipped with radios.
18.7.3 Underground Communications
A leaky feeder system will be used for underground communications. The system includes a coaxial or
“radiating” cable that is run through the drifts to act as an antenna for radio communication. Line amplifiers
will be placed every 350 m to 500 m to boost signals as required. This will allow for two-way radio
communication throughout the mine. The system will be installed and maintained by the mining
contractor. Capital costs have been included with utilities for development costs.
18.7.4 Transportation
Project personnel will be transported to the site from the town of Santa Rosa de Osos and other nearby
communities. Transportation will be provided for the workers via locally hired buses and/or large vans.
There is no plan to provide camp facilities at the project site.
18.7.5 Solid Waste Disposal
Solid wastes will be disposed of in a manner complying with local regulations. Allowable products will be
disposed of in a solid-waste landfill constructed on site. Products not allowed to be disposed of in the
landfill will be transported to appropriate facilities off site.
18.8 Fuel Delivery and Storage
Diesel fuel will be delivered to the mine site via contractor-owned tanker trucks and stored in tanks on-site
for use by mine and surface mobile equipment and vehicles. Each storage tank is contained in a lined
basin to assure no fuel is leaked into the environment. The diesel fuel storage and filling station is located
opposite the mine portal in the area adjacent to the main access road.
This facility will be provided and managed by the mining contractor.
18.9 Site Fencing
The mine portal and process plant areas will be enclosed by four-strand barbed wire fencing to prevent
livestock from wandering onto the property. Security fencing (chain-link fence with barbed-wire or razor-
wire crowns) will be utilized around the 44 kV Switchyard and the electrical switch rooms.
Page 18.11
18.10
AMENDEDPower Supply
NI 43-101 and REPORT
TECHNICAL Distribution
18.10.1 Power Supply – Incoming
The Santa Rosa plant will be supplied by a 44 kV overhead power line coming from an existing EPM
substation located approximately 9 km south of the plant site at Rio Grande. Figure 18.3 shows the EPM
power substation and plant site with the proposed route for the new 44 kV power line. The overhead
power line and associated infrastructure will have sufficient capacity for the planned expansion (10 MW).
Figure 18.3 44 kV Overhead Power Line from EPM Substation
The 44kV line will be terminated at the main substation dead-end structure. The line is connected to the
main breaker through a motorized disconnect switch. A set of surge arresters, current transformers and
voltage transformers will be provided at the line side of the main disconnect switch.
18.10.2 Main Transformer and Medium Voltage Switchgear
Power will be stepped down from 44 kV to 4.16 kV by means of a 44/4.16 kV, 7.5/10 MVA oil filled
ONAN/ONAF transformer with delta configured primary and wye configured secondary. The main
transformer is grounded via a resistor transformer. The 4.16 kV facilities include switchgear and two
300 kVAR shunt capacitor banks, station services, protection and control. The switchgear will be a single
bus arrangement.
Page 18.12
AMENDEDPower
Distribution
NI 43-101
The stepped down 4.16 kV power will be distributed to the plant switchrooms (load centres) using 5 kV
cables installed as a combination of cable trays and direct buried. The main switch room will supply power
for equipment located in the milling, feed preparation, and flotation areas. The reagents switch room will
supply power to leaching, desorption, goldroom, and reagents areas. The plant administration building and
the plant workshop and main warehouse will be fed from separate 4.16 kV lines and their dedicated 4,160
/ 480 V transformers.
A 4.16 kV direct buried cable will supply power to the 4.16 kV mine services switchgear, which will feed
the mine area operation, ventilation fans, and the filter plant switchroom. The mine area operation and
ventilation fans will be fed via underground 4.16 kV lines. Each line will be protected by a 4.16 kV feeder
breaker. The step down transformers and their protection at the destination will be supplied by the mining
contractor and ventilation supplier. A dedicated feeder breaker will supply power via an oil filled outdoor
4,160 / 480 V, 500 kVA transformer to the filter plant switch room.
18.10.4 Power Demand
18.10.5 Process Plant Power Demand
The estimated load for the Santa Rosa Process Plant is as follows:
 Connected load: 5.16MW
 Name plate load: 4.93MW
 Maximum demand: 3.94MW
 Average(operating)load: 2.58MW
 Largest size motors: 1.2MW SAG MILL
 Overall Power Factor 0.89
 4.16kV system neutral grounding resistance grounded
 480V neutral grounding solidly grounded
A large proportion of the electrical load will be due to the process plant. The process plant is expected to
run continuously for 24 hours per day. The load list summary is shown in Table 18.1.
Page 18.13
AMENDED NI 43-101 TECHNICAL REPORT Process Plant Power Requirements

Table 18.1
Peak
Nameplate Connected Max Load Power Peak Utilisation Operating
Demand
Process Area Load Load Factor Factor Demand Factor Load
Load
kW kW LF Cosϕ kVA UF kW
kW
SAG Mill 1,200 1,288 0.9 1,159 1 1,165 0.91 873
Feed
Preparation & 661 693 0.75 523 0.88 607 0.52 322
Milling
Screening / Air
671 701 0.65 459 0.86 543 0.69 320
Services
Floatation &
816 858 0.72 614 0.82 750 0.60 403
Water System
Leaching,
Desorption,
743 769 0.79 605 0.81 742 0.53 319
Goldroom &
Reagents
Tailing Filters 731 745 0.66 491 0.86 573 0.54 268
Facilities and
108 108 0.85 92 0.80 115 0.91 84
Buildings
Plant Total 4,930 5,162 0.76 3,943 0.89 4,394 0.66 2,584
In general, equipment will not be loaded above 80% of its rated capacity. The peak demand load was
calculated from the load list taking load factors into account.
 Demand current will not exceed 80% of the MCC bus ratings
 Demand current will not exceed 80% of the feeder capacity
18.10.6 Mine Area Power Requirements
It is estimated that a peak of 1.25 MW will be required for the underground mine and infrastructure. Of
this, 400 kW is required at the ventilation shaft collar (400 kW demand at the shaft collar would be very
rare as these ventilation fans are intended to be run one at a time), leaving a peak requirement of
approximately 900 kW underground. Table 18.2 shows the demand by unit for each type of equipment
and Table 18.3 shows the quantity of equipment that will be operating each year.
Page 18.14
AMENDED NI 43-101 TECHNICAL REPORT Maximum Mine Area Power Demand

Table 18.2
Mobile Equipment Demand Units Comments

Single Boom Jumbo 45 kW Note that Mobile Equipment travels on Diesel and then operates on electrical
Double Boom Jumbos 135 kW
Development Bolters 55 kW
Core Drills 45 kW
Ventilation Equipment
Primary Ventilation Fan 200 kW Note that the Secondary fan is backup for the Primary, thus there should be
Secondary Ventilation Fan 200 kW 24/7 utilization of the 2 together, but only one at a time would operate.
Auxiliary Fans 75 kW
Dewatering
Dewatering Pump #1 47 kW Pumps differ in requirements based on head to be pumped.
Dewatering Pump #2 63 kW
Auxiliary Pumps 15 kW
Other
Compressors 93 kW Compressed air for underground services and drilling
Note that dewatering Pumps 1 through 4 are staged in overtime based on the location and pumping
needs. See Section 21.2.1.9.
Table 18.3 Mine Area Electrical Equipment in Operation by Year
Mobil Equipment Units Yr -1 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8

Single Boom Jumbo # 1 2 2 2 2 2 2 2 2
Double Boom Jumbos # 2 2 2 2 2 2 2 2 2
Development Bolters # 1 1 1 1 1 1 1 1 1
Core Drills # 1 1 1 1 1 1 1 1 1
Ventilation Equipment
Primary Ventilation Fan # 1 1 1 1 1 1 1 1 1
Secondary Ventilation Fan # 1 1 1 1 1 1 1 1 1
Auxilary Fans # 2 4 4 4 4 4 4 4 4
Dewatering
Dewatering Pump #1 # 1 1
Dewatering Pump #2 # 1 1 1 1 1 1 1 1
Dewatering Pump #3 # 1 1 1 1 1
Dewatering Pump #4 # 1 1 1
Auxilary Pumps # 1 3 3 3 3 3 3 3 3
Other
Compressors # 1 2 2 2 2 2 2 2 2
Of note, the primary and secondary ventilation fans would be placed in parallel within the same ventilation
shaft, and the secondary fan would be acting only as a backup to the primary fan. Thus, the electrical
demand from the two fans shouldn’t exceed the 200 kW rating for a single fan. Also, the single and
double boom jumbos and the bolters would be powered by diesel for transportation, and only running off
of electricity during drilling and bolting operations.
Page 18.15
Lycopodium
AMENDED NI has TECHNICAL
estimated
43-101 costsREPORT
for electrical distribution on site, which includes two 5 kV drops and
transformers to convert power to 480 V for underground equipment. One of the lines and transformers
would be placed on the surface near the furthest western ventilation shaft. That transformer will be used
for the two surface exhaust ventilation fans. An allowance for cables and switching gear from the
transformer to the surface ventilation equipment has been made in the capital cost estimate.
The other transformer will be placed near the portal during the start of operations. This transformer will be
used to operate development equipment during the construction period. Once development has been
completed to the bottom of the first ventilation shaft, the underground transformer will be moved to a
location nearby. The 5 kV power input to the transformer will be placed in the ventilation shaft to reduce
the amount of cable required. Power will be distributed to production and development areas from the
transformer via a 480 V cable hung from the back. Switch gear will be maintained near the production
areas.
During the life of the mine, the transformers will be moved as required to prevent efficiency losses. Two
additional locations will be used, one at the bottom of the second ventilation shaft to service deeper mining
on the eastern side of the deposit, and another at the main decline turn off to reach the western portion of
the deposit.
Capital requirements for the underground electrical distribution are discussed in the capital cost section.
Operating costs will consist primarily of salaries for electricians to maintain power to the production and
development areas. Maintenance of the underground electrical distribution is included in the contractor’s
responsibility; thus, the operating cost related to the electrical distribution system is included in the
contractor costs.
18.10.7 Voltage Selection
Table 18.4 describes the designed voltage levels for the project. These may vary slightly during the course
of the project based on specific requirements of equipment manufacturers.
Table 18.4 Voltage Levels
Category Condition Voltage (V) Phase Frequency

Primary Supply (High Voltage) Nominal 44,000 3 60
Primary Distribution (Medium Voltage) Nominal 4,160 3 60
Low Voltage Utilization Nominal 480 3 60
Low Voltage Lighting Nominal 380/220 3 60
Switchgear Control Voltage Nominal 125 DC -
Page 18.16
AMENDEDVoltage
18.10.8 TECHNICAL
Drops
NI 43-101 Limit REPORT
Voltage drop limit will not exceed the following:
 Steady-States:
Distribution feeders (from 4.16 kV switchgear to transformer primary): 1%
Motor feeder cables: 3%
Lighting fixtures (from distribution boards): 3%
 Motor Starting
Motor starting (of nominal bus voltage at point of connection): 15%
18.10.9 Supply Voltage
The supply voltage to different equipment in the process plant will be as per table 18.3 below:
Table 18.5 Supply Voltage
Equipment Type Rating Voltage (V) Phase

Motors below 0.5 kW 220 1
From 0.5 kW to 200 kW 460 3
above 200kW if not soft start 4,160 3
SAG mill 1200 4,160 3
Heaters Less than or equal to 1 kW 220 1
Greater than 1 kW 480 3
Lighting and receptacles 220 1
Outdoor floodlights 380 3
Instrumentation and control panels 120 1
18.10.10 Emergency Power Supply - Process Plant
A 600 kVA and two 200 kVA diesel generating units are included to supply emergency power for
process plant and administration buildings. The emergency power is not meant to be used for
sustaining the operations of the plant. The purpose of the emergency power supply is to provide
power during plant power outage to the following consumers:
 Plant administration building;
 Guard house;
Page 18.17
 30%
of area lighting;
 Control room power;
 Thickener rake system
 Thickeners underflow pumps (50%);
 Fire-detection system and dry-pipe fire-fighting system (main fire loop has diesel pump).
18.10.11 Emergency Power Supply – Mine Area
A 200, kVA emergency generator will supply power for essential mine area loads during power outage,
primarily to maintain ventilation and pumping in critical areas.
18.10.12 Construction Power
The construction power demand is estimated to be about 1,000 kVA. One (1) 600 kVA and 2X 200 kVA
diesel (natural gas) generator sets will supply power to the different areas of the process plant and mine
site during construction.
These diesel generator sets will be used as emergency power supplies for the process plant and mine site
upon the completion of the construction. All mining and construction contractors have based their quotes
on construction site power supplied by generator sets.
18.10.13 Power Quality
Power factor correction calculations will be used to determine the requirements for leading reactive power.
Multi-stage capacitor banks will be provided to raise the overall site power factor. The capacitor banks will
be connected to the main 4.16 kV switchgear bus.
18.10.14 Lightning Protection System (LPS)
The designed lightning protection system shall be able to identify the most suitable location(s) for the air
terminal(s) to provide the zones of protection to the structure/building against direct lightning strikes. The
method to determine the zones of protection will be based on the ‘Rolling Sphere’ technique or equivalent
proven method.
Air terminal(s) shall be installed at any salient point (e.g. corners and highest point) on the structure /
building / roof to achieve the high probability interception point.
In addition all building columns and lighting poles will be grounded. This provides extra risk mitigation on
top of the air terminals installed for the LPS
Page 18.18
NI 43-101 TECHNICAL
AMENDEDElectrical
18.10.15 REPORT
Switch Rooms
Electrical equipment such as switchgear, secondary substations, MCCs, panel boards, UPS, process
control system, I/O cabinets, etc, will be housed in designated electrical switch rooms within and around
the process plant in a climate controlled environment.
Air-conditioning units will be provided to control the humidity and room temperature. Electrical switch
rooms will be raised 1.8 m above standard floor levels to prevent flooding and provide room for cable pull.
Man-doors and double doors will be equipped with panic bars and will open outwards. The electrical
switch rooms will be sealed to provide the required fire rating.
18.11 Transportation and Logistics
18.11.1 General
Colombia is serviced directly, or through trans-shipment, by ample carriers of all modes, and it has the
supporting infrastructure to receive major project cargo from offshore. Santa Rosa de Osos is located
70 km northeast of Medellin, on Highway No. 25, which is a major transport route to Caribbean ports.
Figure 18.4 Santa Rosa Mine Site Location
Page 18.19
The Santa NI
AMENDED Rosa TECHNICAL
project
43-101 REPORT
involves the delivery of major equipment from various parts of the world, including
Asia, North America and Europe. For this project, marine and truck transportation services will be utilized,
individually or in combination. Off-site laydown areas, marshalling areas and project warehousing have
been identified in the Medellin and Santa Rosa de Osos areas.
Ground transportation will determine the maximum size loads to be delivered to site. There is adequate
road access to the Project site from the ports of Barranquilla and Buenaventura.
18.11.2 Port of Barranquilla
The preferred port for the Santa Rosa project is the port of Barranquilla situated 630 km north of the
project site on the Caribbean Sea. The port is connected to the site via two lane national Highway No. 25,
which is part of the Pan-American Highway. The 630 km represents an average of 13 hours driving time
between the port and site.
Figure 18.5 Port of Barranquilla
Barranquilla is the largest port in Colombia and includes storage for over 6,000 TEUs of containers and
warehouses with a capacity of over 140,000 metric tons of bulks and 100,000 metric tons of general
cargo.
The port of Barranquilla is a natural river port considered to be a medium sized with excellent shelter
characteristics accommodating vessel sizes of over 150 metres in length. The port has a total 2,100 linear
metres of river frontage, including one dock of 1,050 metres with six berthing positions for ships. The
water depth varies between 9 to 10.5 metres with a cargo pier of 9 metres. The port provides anchorage
of 8 to 9 metres.
Barranquilla port has lifts and cranes ranging up to 100 tonnes including mobile and floating cranes.
Page 18.20
AMENDEDPort
of Buenaventura
NI 43-101
Buenaventura Port is located on the Pacific Ocean close to the Panama Canal and is one of the closest
ports on the American Continent to the Far East. The port is situated approximately 560 km southwest of
the project site linked by the two-lane national Highway Nos. 25 and 29. The 560 km represents an
average of 11 hours driving time between the port and site.
Figure 18.6 Port of Buenaventura
The port of Buenaventura is a natural river port considered to be a small sized with good shelter
characteristics accommodating vessel sizes of over 150 metres in length. The Port access canal is
31.5 kilometers, or 17 nautical miles long. At low tide, it is 10.3 metres deep in the outside bay and in the
interior bay the depth is 12.5 metres at low tide. The access canal width is 200 metres.
Buenaventura port has lifts and cranes ranging up to 80 tonnes including mobile and floating cranes.
18.11.4 Containerized Cargo and Legal Load Trucking
Standard trucking equipment is available within Colombia to meet the general trucking and container
transportation requirements of the Project. Larger trucking companies could potentially mobilize the
necessary equipment at selected ports, according to arrival schedules.
Page 18.21
18.12
AMENDEDWaste Rock
NI 43-101 and Tailings
TECHNICAL REPORTFacility
18.12.1 Design Concept
The proposed facility is comprised of mine development rock (granodiorite) and filtered tailings blended
together to form the Dry Waste Management Facility (DWMF), located to the north of the project site
(Figure 18.7). The concept of filtered tailings has been adopted to minimize the footprint of the deposit,
reduce the amount of water treatment demand and have a stable mine waste deposit during and after
operations. Water will not be stored within the DWMF, eliminating the risk of a tailings dam breach and
downstream flood wave.
Figure 18.7 General Configuration of the DWMF
The low moisture content tailings (16%) will be transported via truck and deposited along with mine
development rock. The material will be spread and compacted to form an unsaturated mass which will not
require a downstream containment structure. This design was adopted because it offers the following
advantages:
 Allows maximum water recovery and minimum fresh water use for the Santa Rosa Gold
Project;
 Eliminates the risk of dam breach and tailings runout as associated with conventional
storage facilities;
 Suited to areas where seismic activity may occur because the tailings are compacted to
produce a stable material;
 Minimizes the construction material required for the facility;
 Allows progressive rehabilitation and revegetation;
Page 18.22

Incorporates a REPORT
drainage system beneath the DMWF that collects seepage from the
waste materials and significantly reduces the potential for groundwater contamination;
and
 Allows increase in capacity by raising the elevation of the DWMF.
18.12.2 Geotechnical Investigation
To provide the geotechnical information required for the DWMF design, a series of geotechnical drillholes
were carried out between April and May 2014 (Figure 18.8 and Table 18.6).
Table 18.6 Summary of geotechnical investigation
ID Total depth (m) Area Comments

Samples for laboratory analysis
BH-GA-02 30.0 Portal pad
recovered
BH-GA-03 45.7 Portal area
recovered
BH-GA-04 28.0 Filter press
recovered.
Monitoring well near installation of open pipe (Casagrande)
BH-GA-05 80.2
La Veta creek piezometer
BH-GA-06 15.1 Process plant
recovered.
Standard Penetration Tests and
samples for laboratory analysis
BH-GA-07 71 Process plant
recovered, installation of open pipe
(Casagrande) piezometer
Standard Penetration Tests and
BH-GA-08 16.8 Process plant samples for laboratory analysis
recovered
BH-GA-10 15.0 Process plant
recovered
Along right abutment of proposed
BH-GA-11 30.0 DWMF
DMWF deposit
Pump tests performed for assessment of
BH-GA-15 172.8 Pump well hydrogeologic conditions within shear
zone
Page 18.23
AMENDEDFigure TECHNICAL
18.8
NI 43-101 REPORT Investigation Carried Out in 2014 (Golder, 2014a)
Geotechnical
N Waste soil
area
DWMF
area
Plant and
portal areas
Shear zone
The drill holes completed in the project area had the following objectives:
 At the portal and process plant area (GA-03, -04, -06, -07 and -08), estimate soil profiles
for subsequent bearing capacity and slope stability analyses;
 At the DWMF area (GA-11), estimate an approximate depth to bedrock and soil
conditions for DWMF foundation preparation;
 At the decline area (GA-02, -03, -04), assess depth to bedrock and quality of saprolite
and bedrock to be crossed by the initial decline segment; and
 Along the shear zone (GA-05, -15), assess the hydrogeological behaviour of the shear
zone via a deep pump test (170 m deep).
Page 18.24
Results of NI
AMENDED the43-101 TECHNICAL
drilling REPORT
program, detailed field and laboratory tasks are summarized in the field report by
Golder (2014a). The drilling program was carried out by L.T. Geoperforaciones Ltd. and supervised by
Golder and Red Eagle Mining personnel.
Standard Penetration Tests (SPT) were performed along saprolite and ‘undisturbed’ Shelby samples
collected at different depths for estimation of index properties (moisture content, grain size distribution,
consistency limits) and other engineering properties (shear strength, compaction and consolidation). The
results of the laboratory tests are described by Golder (2014b).
Geotechnical tests on disturbed and undisturbed samples were conducted at the soils laboratory of the
Universidad Nacional de Colombia in Medellín. The testing programme included the following:
 38 natural moisture content determination (ASTM D2216-98);
 38 grain size analyses (ASTM D422-07);
 38 Atterberg limits (ASTM D4318-05);
 3 one-dimensional soil consolidation tests (ASTM D2435-04);
 2 Triaxial shear strength tests (ASTM D4767-04);
 2 Standard compaction (Proctor) tests (ASTM D 698-07); and
 2 Direct shear tests (ASTM D3080-04).
The testing programme focused on estimating the behaviour of the surface soils (saprolite and residual
soil) for the design of foundation systems and earthworks associated with the process plant, portal area
and DWMF. A geotechnical characterization was based on the results of these tests and results of the
field investigation campaigns. Results of the laboratory tests are summarized in the following tables and
values used in design summarized in Table 18.6. Details of the geotechnical characterization are
presented by Golder (2014b).
The general soil profile in the project area is characterized by a thin topsoil layer (0.3 to 0.5 m thick), a
clayey residual soil layer (generally 1-2 m thick), overlying a 5 to 40 m thick saprolite layer (Figure 18.9).
The saprolite grades from fine-grained (clay and silt) near the surface to coarse-grained (sand and small
rock fragments) with depth. A transition zone comprising fractured rock (sap-rock) separates the fresh
bedrock from saprolite.
Natural moisture contents in the saprolite range between 20 and 40%, liquid limits between 35 and 60%
and plasticity indexes between 15 and 20%. Fines content in the saprolite range between 30 and 80%
with some lower values likely due to washing of the fines during sampling.
Page 18.25

Figure 18.9 REPORT
Saprolite Thickness in Project Area (CRA, 2013)
The DWMF, portal access and process plant infrastructure will be founded on saprolite; therefore the
geotechnical characterization is focused solely on the behaviour of this layer. The underlying fractured and
fresh rock are considered stable and are sufficiently deep to not have an influence on the stability of the
DWMF, portal and process plant areas.
Saprolite is a transition geological unit between fresh rock and completely weathered soil. It is created
from the slow weathering processes degrading the underlying igneous and metamorphic bedrock, and it is
an in-situ soil (i.e. no mass transport has occurred). Saprolites often exhibit continuation of discontinuities
or fractures remaining from the underlying rock and can be preferential seepage paths or potential failure
planes.
Generally, saprolite in the project area has good stability conditions, evidenced by nearly vertical cuts for
roads (Figure 18.10). Except for the bottom of the valleys, these materials are constantly above water
table (unsaturated) thus their shear resistance is high and allows steep cuts (between 55 and 75 degrees)
with little or no support requirements. The main issue these materials exhibit is erosion susceptibility.
When exposed to runoff or direct precipitation erosion and rilling is rapidly triggered, thus runoff control is
designed for all cuts and project roads.
Page 18.26

FigureREPORT
18.10 Near-Vertical Cuts in Saprolite
Table 18.7 summarizes the results of shear strengths correlated from SPT tests as a function of depth.
The average values of friction angle obtained from this correlation are 33 degrees for the upper 3 meters
and 38 degrees for depths greater than 3 m.
Page 18.27

Table 18.7 REPORT
Shear strength estimates for saprolite soil
Depth (m)
Boring NFIELD (N1)60 ' (°)
From To
1.5 1.95 6 10 33
3.5 3.95 20 29 41
5.5 5.95 20 26 40
7.55 8 13 16 36
9.5 9.95 14 16 36
12.5 12.95 28 29 41
BH-GA-07 15.5 15.95 27 26 40
18.5 18.95 45 41 45
21.5 21.95 48 41 45
24.5 24.95 48 39 44
28.55 29 33 25 40
33.5 33.6 - - -
34 34.45 90 63 51
0.5 0.95 2 4 28
2 2.45 3 5 29
4 4.45 7 10 32
5.95 6.4 6 8 31
7.9 8.35 11 13 34
BH-GA-08
9.85 10.3 31 35 43
11.8 12.25 4 4 28
13.4 13.85 18 18 37
15.35 15.8 22 21 38
15.8 16.25 30 29 41
Additional shear strength values for in-situ drained and undrained conditions were estimated using triaxial
tests (Table 18.8) for bearing capacity and slope stability analyses. Drained friction angles (’) range from
31 to 38 degrees and undrained shear strengths (Su) between 100 and 520 kPa. To estimate the stability
behaviour of saprolite to be used as fill material at the plant site and portal pad areas, direct shear tests on
reconstituted samples after standard Proctor tests were done to estimate maximum dry density and
optimum moisture content (Table 18.9).
Page 18.28
Table
18.8 REPORT
Summary of triaxial strength tests on 'undisturbed' samples
Undrained
Depth Shear
Drillhole
(m)
USCS ' (°) Strength
(kPa)
33.6 118
BH-GA-07 0.70 MH 36.1 231
31.1 401
38.0 199
BH-GA-07 4.70 SM 35.2 340
32.7 522
Table 18.9 Summary of direct shear strength tests on remoulded samples (to be used as
compacted fill)
Optimum Apparent
Dry Density Moisture Cohesion
Sample Code 3
(KN/m ) Content  (°) Intercept
(%) (kPa)
PC-GA-01 14.7 26 30 51
PC-GA-02 13.9 31 31 29
Table 18.10 summarizes the results of geotechnical characterization of in-situ and remoulded saprolite
soils for use in slope stability analyses. These were estimated from direct shear tests on reconstituted
samples to near optimum water content for the compacted saprolite and ‘undisturbed’ samples for in-situ
saprolite.
Table 18.10 Summary of strength values for in-situ and compacted saprolite
Apparent Drained
Unit Weight cohesion Friction
Soil
Angle, '
3
(kN/m ) intercept
(kPa) (deg)
In-Situ saprolite 17 25 30
Compacted saprolite 18.5 30 30
Page 18.29
AMENDEDDry
18.12.3 WasteTECHNICAL
NI 43-101 REPORT
Management Facility Design
The proposed San Ramón deposit DWMF stores a combination of filtered tailings and mine development
rock. The design concept involves the separation of contact and non-contact waters in the DWMF footprint
to minimize the amount of water infiltrating into the deposit and thus flowing into the seepage collection
pond. The tailings filtration process will produce a filter cake with a moisture content of 16%. This percent
of water in the tailings stream will allow for proper compaction (95+% of standard compaction test) of the
tailings mass within the deposit so a stable, self-supporting mass is constructed.
The proposed DWMF area is a 0.11 km2 sub basin located north of the process plant. It is approximately
450 m long and 300 m wide, with relief of about 60 m.
Geo-Logic Associates performed geotechnical tests on the project tailings for the design of the DWMF.
The objective of the testing program was to characterize the strength and hydraulic conductivity of the
compacted tailings mass for use in infiltration and slope stability analyses. The following tests were
performed:
 Standard compaction (ASTM D-698) tests to estimate the maximum dry density and
optimum moisture content achievable by compaction;
 Grain size analysis (ASTM D-422-07) tests to assess grain size distribution;
 Direct Shear (ASTM D-3080-04) tests to estimate shear resistance of the compacted
tailings. These tests were performed on tailings samples at optimum moisture content
and to a moisture content 3% above optimum moisture content;
 Unconfined Compression Tests (ASTM D-6236) to estimate cured strength of tailings

mixed with cement. These results will be employed in underground mine backfill designs
part of future activities; and
 Permeability tests (ASTM D-2434) to estimate saturated hydraulic conductivity of

compacted tailings.
Figure 18.11 shows the results of the standard compaction test. The maximum dry density achieved
was 19.3 kN/m3 at a moisture content of 14%. The particle size distribution for the tailings is shown on
Figure 18.12. The tailings have a P80 of 106 microns, P50 of 20 microns and P10 of 2 microns.
Page 18.30
Figure
43-10118.11 REPORT
Standard Proctor Test Results (GeoLogic Associates, 2014)
Figure 18.12 Tailings Particle Size Distribution. Data from GeoLogics Associates, 2014
100
90
80
70
PERCENT FINER
60
50
40
30
20
10
0
1 10 100 1000
PARTICLE DIAMETER (mm)
Hydraulic conductivity tests performed on reconstituted samples to dry densities above 95% of the
maximum dry density showed an average saturated conductivity of 6x10 -7 cm/s Direct shear tests

performed on samples at optimum moisture content gave strength parameters of   and c =

100 kPa, and samples tested at 3% moisture content above optimum gave   and c = 20 kPa. For

design, a drained friction angle of 30 and no cohesion were employed to account for the long-term loss of
apparent cohesion due to saturation of the deposit.
Page 18.31
18.12.4 DWMF Slope Stability
The strength values for tailings and saprolite soils were employed in static and pseudo-static slope
stability analyses using the theory of limit equilibrium. An analysis section through the maximum deposit
height was used, consisting of about 50 m of compacted tailings and about 35 m of saprolite overlying
bedrock. Phreatic surface was simulated along the tailings/foundation contact as a drain will be
constructed along the bottom of the DWMF. Figure 18.13 shows the critical slip surface for a static failure,
a non/linear, relatively shallow surface extending from the crown of the DWMF to about 30 downstream of
the toe of the deposit. Table 18.11 summarizes the results of the DWMF slope stability analyses. A
pseudo-static horizontal coefficient of 0.1 g was used in the analyses.
Figure 18.13 Critical slip surface for static conditions (Golder, 2014b)
Table 18.11 Results of slope stability analyses (Golder, 2014b)
Case Factor of Safety
Static 1.58
Pseudo-static 1.14
The calculated slope stability factors of safety are above local regulations and typical values employed in
mining projects (1.5 minimum for long term conditions and 1.0 for pseudo-static conditions).
Page 18.32
NI 43-101 TECHNICAL
AMENDEDDeposition
18.12.5 Plan REPORT
Based on the Santa Rosa mine plan, there will be 1.05 Mt of mine development rock produced during the
mine life. Approximately 40% of this quantity is expected to be used for underground stope fill, and the
remainder will be placed in the DWMF. A portion of the mine development rock will be used for
construction, foundations and road maintenance.
The tailings stream from the process plant will be 1,000 tonnes per day (tpd). A total of 2,759,000 tonnes
of tailings will be produced during the mine life. Table 18.12 below summarizes the expected production of
mine rock and tailings:
Table 18.12 San Ramón project waste production plan
Units Year -1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Total
Mine Rock kt 4 139 135 135 136 139 141 138 88 1,055
Mine Rock to DWMF kt 4 55 41 41 41 44 41 42 11 320
3
Mine Rock Volume at mx
3
1.9 t/m 1000 2 29 22 22 22 22 22 22 6 169
Tailings kt 0 360 360 360 360 360 360 360 239 2,759
Tailings to DWMF kt 0 235 219 219 219 219 211 216 125 1,663
3
Tailings to DWMF mx
3
Volume at 1.9 t/m 1000 0 124 115 115 115 115 111 114 66 875
Material to DWMF kt 4 290 260 260 260 260 253 259 137 1,983
3
Material to DWMF mx
Volume 1000 2 153 137 137 137 137 133 136 72 1,044
A total of 1.04 million cubic meters of mine rock and tailings will be placed in the DWMF over the life of the
mine.
The development of the tailings management plan and yearly configurations was developed using
GoldTail®, developed by Golder Associates. The model consisted on developing yearly configurations of
mine waste within the designated footprint north of the process plant.
Tailings and waste rock will be transported in trucks from the process plant and from underground to the
DWMF area and spread and compacted to create a self-supporting structure. Figure 18.14 to Figure 18.18
show the yearly configurations of the DWMF. The growth of the deposit is expected to entail shallowly
sloped platforms from years 1 to 4 of the mine life. After year 4, the tailings will be stacked to the northeast
of the deposit. Mine rock will be placed preferentially near the outer slopes to improve erosion resistance
of the stack. The slope and platforms will be revegetated as completed.
Page 18.33

Figure 18.14 REPORT
DWMF Deposit Configuration, Pre-mining and Year 1
PRE-MINING Year -1
3H:1V slope
El. 2437 m
El. 2460 m
El. 2460 m
Process plant
Process plant and portal
and portal
Figure 18.15 DWMF Deposit Configuration, Years 1 and 2
Year 1 Year 2
3H:1V slope 3H:1V slope
El. 2447 m
El. 2453 m
El. 2460 m
El. 2460 m
Process plant
and portal
Page 18.34
TECHNICAL
DWMF Deposit Configuration, Years 3 and 4
Year 3 Year 4
El. 2459 m
El. 2462 m
El. 2460 m
El. 2460 m
El. 2459 m
Process plant
and portal
Figure 18.17 DWMF Deposit Configuration, Years 5 and 6
Year 5 Year 6
El. 2459 m
El. 2466 m
El. 2470m
El. 2459 m
El. 2460 m
El. 2460 m
Process plant
and portal
Page 18.35
TECHNICAL
DWMF Deposit Configuration, Years 7 and 8
Year 7 Year 8
El. 2459 m
El. 2459 m
El. 2475m
El. 2480m
El. 2460 m
El. 2460 m
Process plant
and portal
18.12.6 DWMF Water Management
Water management in the DWMF will consist of minimizing the amount of water infiltrating into the deposit
by intercepting the runoff from upstream of the basin and diverting it downstream through the use of two
HDPE pipes. The pipes will discharge into an 8,000 m3 capacity sediment control pond downstream of the
DWMF toe. The sediment pond will have an outlet to allow surplus water to be discharged to the La Veta
creek.
The surface of the DWMF will be sloped so any runoff flows off the surface before it infiltrates. Water that
infiltrates the DWMF is considered contact water and cannot be released downstream to La Veta creek.
Prior to construction of the DWMF, a rockfill underdrain will be placed along the main natural drainage The
underdrain is a 0.7 m deep, 2 m wide rockfill drain wrapped in non-woven geotextile to prevent particle
migration and clogging of the drain. Contact water collected by the underdrain will flow into a 500 m 3
capacity seepage pond located just downstream of the DWMF toe. A pumping system will recycle the
collected seepage to the process water storage tank. Figure 18.19 shows the water management system.
Page 18.36
AMENDED NI 43-101 TECHNICAL REPORT Water Management for the DWMF

Figure 18.19
Outflow
to La Veta
Sediment
Seepage
control
collection
pond
pond
Rockfill
underdrain Rockfill
underdrain
Non-contact water
diversion pipes
Non-contact water
diversion pipes
A preliminary water balance by Golder (2013) estimated runoff flows for the project area for wet, average
and dry years (Figure 18.20). The catchment area between the portal pad and the La Veta creek basin
head is expected to produce approximately 6 liters per second; this discharge will be used for makeup
water for the process plant. Estimated runoff on the DWMF is approximately 2 liters per second and will be
conveyed to the downstream sediment control pond. Infiltration through the DWMF will be conveyed to the
seepage collection pond and pumped back to the process plant.
Page 18.37
AMENDEDFigure TECHNICAL
18.20
NI 43-101 REPORT
Runoff discharges for wet, average and dry years (Golder, 2013)
The makeup water demand for the process plant is estimated as 3.9 litres per second (14.3 m3/hr). The
makeup water will be fed from the seepage collection pond and the upper catchment area. The
preliminary water balance numbers indicate that there is a positive balance for wet, average and dry
years. The excess discharge from upstream of the portal pad will be conveyed to the sediment control
pond using diversion pipes and eventually discharged back to La Veta creek. Figure 18.21 shows the
water flows for average meteorologic conditions.
Page 18.38

Figure 18.21REPORT
Water Flows for Average Year Conditions
18.12.7 Soil and Topsoil Storage
After construction of the fill pads, approximately 120,000 m 3 of saprolite material and 20,000 m3 of topsoil
material will have to be disposed of in the “Los Guapos” batición (Figure 18.22), an old hydraulic mining
area to the north-east of the DWMF area. This saprolite deposit will be a 40 m high fill with a 3H to 1V
slope partially filling the batición. Topsoil will be placed over the compacted saprolite platform and in a
small area just downstream of the saprolite deposit. An underdrain similar to the DWMF drain will be
placed along the main drainage of the deposit to avoid saturation. The discharge from this drain will be
allowed to freely flow downstream as it is not considered contacted water. Revegetation and sediment
control measures will be applied to ensure the adequate performance of the saprolite deposit.
Page 18.39

Figure 18.22 Spoil Saprolite Storage Area
18.12.8 Preliminary Acid Drainage Considerations
Modified Acid Base Accounting (ABA) tests were performed by SGS Canada in 2013 to estimate the
potential for Acid Rock Drainage (ARD) from waste rock and tailings to be placed in the DWMF. Details of
the fifteen tests performed can be found in SGS (2013). The neutralization/acid ratios indicate low
potential for generation of ARD, with only three schist samples producing NP/AP ratios below 3.0.
Sulphide content of the samples with NP/AP < 3.0 was about 5%, whereas the remainder of the samples
had less than 1% sulphide.
Based on these results, it has been assumed that acid management in the project will consist of closely
monitoring the chemistry of the tailings stream, and if required, a small amount of lime could be added to
the filtered tailings prior to transporting them to the DWMF. Future work will entail additional testing of the
final tailings grind, kinetic testing and geochemical modelling for a more detailed assessment of long term
ARD potential.
Page 18.40
19.0
AMENDED NI 43-101 TECHNICAL MARKET
REPORT STUDIES AND CONTRACTS
19.1 Marketing Studies
No market studies have been undertaken for this project; however, the commercial product will be gold
silver bullion. During 2014 the price of gold has fluctuated in the $1,380 to $1,220 per ounce range. As of
this writing, the three-year average gold price is $1,450 per ounce. Thus, a price of $1,300 per ounce is
reasonable with respect to the current market.
A selling price of $1,300/oz Au has been used for this Feasibility Study.
The project has obtained pricing from major refineries and a quotation from Johnson Matthey has been
used for the refining costs. Red Eagle Mining plans to contract the transportation, security, insurance, and
refining to one refinery. This ensures the security of the gold on leaving the mine gate is the responsibility
of one party.
Page 19.1
AMENDED NI 43-101
20.0 TECHNICAL REPORTSTUDIES,
ENVIRONMENTAL PERMITTING AND SOCIAL OR
COMMUNITY IMPACT
20.1 Introduction
This section is a summary of the Environmental Impact Assessment (EIA) which was submitted to
‘Corantioquia Tahamies’ (Environmental Authority) in February 2014. The EIA was based on the
technical content of the Preliminary Economic Assessment (PEA) issued by Red Eagle Mining in
October 2013. Upon the advice of the Environmental Authority an update to reflect the results of this
Feasibility Study, will be issued after the granting of the Environmental License. Sub section 20.14 of
this summary shows the key changes from the PEA to this Feasibility Study.
The (EIA) has been developed by Tetra Tech Colombia SAS, with the full support and participation of
the Universidad de Antioquia (University of Antioquia) and Fundación Universitaria Católica del Norte
(Foundation Catholic University of the North), who carried out the environmental baselines studies in
the disciplines of their respective expertise. The EIA is in compliance with requirements and
specifications provided in the Terms of Reference for Gold Mining Operation Projects issued by the
Regional Autonomous Corporation of Central Antioquia, ‘Corantioquia Tahamies’ (Environmental
Authority), and by the terms for submission of Environmental Studies issued by the Ministry of
Environment, Housing and Territorial Development – MAVDT, and International Standards.
The EIA has been prepared from the results of baseline studies conducted during 2012 and 2013, and
technical studies undertaken during 2013. A Preliminary Economic Assessment (PEA) was undertaken
by Mine Development Associates of Reno, Nevada, and published in October, 2013. At the same time,
a Plan de Trabajo y Obras (PTO), was completed in house, which followed the technical content of the
PEA, and was submitted to the competent mining authority, the Secretaria de Minas de Antioquia
(Secreminas, or Mines Department) in November, 2013. This PTO was subsequently approved in
August, 2014. Approval of the PTO is the first stage of the environmental licensing process.
20.1.1 Requirement For EIA
The EIA is a public document necessary for all projects that have potential impact on the environment
and local communities and stakeholders. The EIA is a necessary requirement as part of the process to
obtain an Environmental License to proceed with a project (Decrees 2811 of 1974, and 2820 of 2010)
Any mining operation that plans to excavate more than 2 million tonnes per year of rock must apply to
the National Environmental Agency, who rely initially on the local Environmental Authority, this adds to
the complexity of the process.
As the Santa Rosa Gold Project will excavate less than 500,000 tonnes per year, the EIA for the Santa
Rosa Gold Project will be reviewed and approved by ‘Corantioquia’ the local Environmental Authority,
which is the local government agency and competent authority in the Santa Rosa Municipality and the
Department of Antioquia, with a base in the town of Santa Rosa de Osos from where the approval will
be granted.
Page 20.1
AMENDED
The NI 43-101
EIA was TECHNICAL
submitted REPORT Authority on February 20, 2014
to the Environmental
20.1.2 Objectives of the EIA
The EIA is a detailed technical document prepared using best practices and principles, to enable the
Environmental Authority and stakeholders to evaluate the feasibility of a project by identifying the
principal impacts and mitigation factors that may apply. It is also a requirement by international project
finance banks that the EIA be compliant to Equator Principles, and the applicable IFC Standards.
Red Eagle Mining requested Tetra Tech Colombia SAS to undertake the preparation of the EIA, based
on the environmental baseline studies conducted 2012 and 2013 by the two local universities noted
above. These institutions are highly regarded in the region, and by the Environmental Authority.
The EIA for the Santa Rosa Gold Project contains:
 All technical aspects of the project, including mining and processing operations,
infrastructure and economics;
 Baseline studies of the physical, biological, socio-economic and cultural

environments of the areas of influence;
 Identification of specific natural resources that will be developed and / or impacted;
 Identification and evaluation of the environmental impacts;
 Establishment of an Environmental Management Plan (EMP), to prevent, mitigate,

correct, or compensate potential impacts of the project; and
 Establishment of contingency, closure, monitoring, and follow-up plans.
20.2 Environmental Licensing
The Environmental License (EL) is the final stage in the mining project permitting process. The license
will contain two final parts:
 Environmental Guidelines which are issued by the local Environmental Authority

within the Department of Antioquia, who are based in the nearby town of Santa Rosa
de Osos.
 An EMP which is included in the EIA, and may require amendment to include any
further additions the Environmental Authority may deem necessary.
The final approval and issuance of the EL allows the Company to proceed with project construction
followed by operations, without any further permitting processes being required.
Page 20.2
AMENDED NI 43-101
The construction TECHNICAL
period REPORTduring the life of the mine will be regularly inspected and
and operations
monitored by the Environmental Authority.
All statistics and technical aspects of the project must be submitted to Secreminas on an annual basis;
changes in the technical aspects must be approved by Secreminas, and in turn submitted to the
Environmental Authority for their approval, which may or may not warrant further changes to the EMP.
20.2.1 Process Stages of the Santa Rosa Gold Project
The following table and diagram show the necessary steps to obtain approval of the EIA, and the
granting of the EL:
Steps in the Environmental Licensing Process
Process Result
Submit a letter to the Antioquia Environmental Official Terms of reference for the area to be developed - Terms of
Authority (‘CORANTIOQUIA’) requesting Terms of Reference were issued and accompanied by a Letter of
Reference for the EIA Confirmation from the Environmental Authority in July, 2013
A certificate regarding ethnic communities presence/absence in the area
Submit a letter to the Ministry of the Interior
(black or indigenous communities) - Official Letter informing the
(‘MININTERIOR’) requesting presence of ethnic
Company that there were no ethnic communities present in the
communities in the area
tenement areas issued in June, 2012
An official reply about ethnic community property in the area - Official
Submit a letter to the Institute of Rural Development
Letter informing the Company that there were no ethnic
(‘INCODER’)
communities present in the tenement areas issued in June, 2012
An official reply concerning any archaeological research requirements in
the area - Official Letter informing the Company that the
Submit a letter to the Institute of Anthropology and archaeological authorization N° 3425 is granted on May 22, 2013.
History (‘ICANH’) Official Letter informing the Company that the final report and the
Archaeological Management Plan have been approved in January,
2014.
Submit a Technical Study (PTO) describing the An official approval of the PTO, which initiates the environmental
technical aspects of the planned mining and approvals process - Submission of the official document in
processing development and operations to the November, 2013, with official approval of the PTO issued by
Secretary of Mines (‘SECREMINAS’) Secreminas in August, 2014.
Preliminary baseline assessment - Work commenced under contract
with Universidad de Antioquia (UdeA), and Fundacion Universitaria
Commence Environmental Base Line-EBL studies
Catolica del Norte (FUCN) in early September 2012 and was
completed in May 2013.
A final EIA document - Contract to complete the EIA was awarded to
Tetra Tech Colombia SAS in early December 2012, and was
Consolidate Environmental Impact Assessment-EIA
completed and submitted to the Environmental Authority in
February, 2014.
An official submission receipt on February 20, 2014
Submit EIA to Environmental Authority An official letter informing the Company that the Initial Act for the
licensing process is issued on May 6, 2014
An official Environmental License for the Company allowing it to proceed,
Evaluate the final EIA and make resolution of
without any additional permits, for construction and operation of the
approval
project.
Page 20.3
The process to grant the EL includes a site visit to the project area following an initial review of the EIA
document. This process may be followed by any recommendations from the Environmental Authority
for incorporation into the EIA document as Addenda, prior to granting the EL. Recommendations have
been received and addressed by Red Eagle Mining during 2014 since submission of the EIA.
The Santa Rosa Gold Project is located in the mining concession contract B7560005. The aim of the
project is to extract and process the identified gold resource through a safe, efficient, and economical
underground mining operation, with minimal environmental impact. The EL will be specifically issued
for this concession contract.
This EIA Summary Report contains the key information and findings of the EIA for the Santa Rosa
Gold Project, providing information regarding the environmental impacts that the project may cause,
and most importantly, the methodology that the Company will use to control or mitigate these impacts
at all stages of the project.
20.2.2 Community Participation
The most significant issue in the EIA approval process is the recognition of a total social acceptance of
the project (which is not established by law, but of absolute necessity), such that all communities and
stakeholders have a full understanding of the Company’s intentions, and of the development of the
project. As a result it is important that the local communities and other stakeholders have been
involved in the preparation of the Santa Rosa Gold Project EIA.
The EIA was developed with the participation of communities and stakeholders of the Santa Rosa de
Osos Municipality, both in rural and urban areas. Information workshops were presented to explain the
project at the various stages of exploration, construction, operation, closure, and post-closure. These
information workshops were held in each village of the of the project's Area of Direct Influence (ADI),
and Area of Indirect Influence (AII).
Page 20.4
AMENDED
In additionNI to
43-101 TECHNICAL
these informationREPORT
sessions, participatory workshops were also held, where the
communities and other stakeholders including local government, community leaders, institutions,
environmental authorities and NGOs actively collaborated with the Company and their environmental
consultants, to identify the project impacts and assisted in formulating measures to mitigate and
manage the identified impacts.
Part of this process included visits to the project site area, to enable the participants to understand the
scale of the project and the minimal impact of the planned surface facilities to the surrounding area.
20.3 The Company
Red Eagle Mining is listed on the Toronto Stock Exchange Market with the ticker (TSX-RD), their
website address is: www.redeaglemining.com
The Company is engaged in the development of the Santa Rosa Gold Project, near to the town of
Santa Rosa de Osos in the Antioquia Department of Colombia. It operates with the corporate policy of
“Responsible Mining” carried out with a duty of care to the environmental and community.
This policy ensures that the Company conducts their operations and activities in harmony with the
environment and society, contributing to the development, welfare, and improvement of the quality of
life of their employees, their families and the communities local to their operations.
This is achieved through joint participation with communities and local government agencies in
decisions and actions that seek to provide effective, efficient, and sustainable solutions to the benefit
the communities and other stakeholders.
20.4 The Santa Rosa Gold Project
The Santa Rosa Gold Project is a gold deposit located approximately 70 km from Medellin, in the
Municipality of Santa Rosa de Osos. The municipality has over 400 years of mining history. The
project, including the Feasibility Study, PTO and EIA has focused on the San Ramon deposit located
within concession contract B7560005, which has a total area of 500 hectares (ha) and is situated
between the villages of La Cejita, Playa Larga, Rio Negrito, San Felipe, San Francisco, San Jose de la
Ahumada, San Ramon and Ventiadero (areas of possible direct or indirect influence).
The PTO and EIA reported the project surface facilities will occupy less than 60 ha of the concession,
comprising just 12% of the total concession contract area. The following maps show the location of the
Santa Rosa Gold Project in detail. The Project site can be accessed from Medellin via approximately
65 kilometers (km) paved road to within 8 km of the project area; the remaining distance is by an
unpaved road which is in good condition.
Page 20.5
Location of the concession contract B7560005, San Ramon deposit
Page 20.6
NI 43-101 TECHNICAL
AMENDEDBaseline
20.5 Studies REPORT
20.5.1 Baseline Study Consultants
The Company tendered the various aspects/disciplines of the baseline study work to local universities
in the Department of Antioquia. Two universities were selected based on their expertise in the required
disciplines.
The University of Antioquia, located in Medellin was selected to undertake surveys on the atmosphere
(air quality and noise), water quality and uses, hydrology (including detailed modelling), and
hydrogeology.
The Foundation Catholic University of the North, located in Santa Rosa de Osos was selected to
undertake surveys on flora and fauna, geotechnics and geology, soil and landscape, communities
including public health and epidemiology, and archeology.
These two universities are very highly regarded by the Environmental Authority in their fields; the
FUCN was particularly important due to its very local location and knowledge of the region and culture.
The baseline survey work was conducted over a period of 9 months for the EIA, but has continued
since the EIA study completion.
The baseline work was audited in detail by Tetra Tech Colombia SAS, who have been responsible for
the EIA, as well as the authors of all relevant documentation.
20.5.2 Areas of Influence
For the preparation of the EIA, the areas of influence have been defined as those geographic areas
where the project activities will be carried out, and which will have direct and indirect impacts on abiotic
(water, air and soil), biotic (flora and fauna) and socio-economic environments (social, cultural and
economic activities).
The influence areas established for abiotic and biotic environment are:
 Area of Direct Influence (ADI): refers to sites that could be affected directly by
impacts resulting from the project activities; and
 Area of Indirect Influence (AII): refers to sites that could be affected by indirect or
secondary impacts, occurring in distinct geographic areas, outside the ADI and occur
on a mid to long-term time frame.
Page 20.7
AMENDED NI 43-101
For the abiotic TECHNICAL
environment REPORT
an ADI with a total of 300 hectares was defined (more than 5 times the
project defined footprint). The criteria used to identify the area were watersheds, river basins, soil
usage, air quality modelling, and was based on an analysis of direct impacts on these aspects.
Additionally an AII with an area of 240 hectares was defined using the hydrological component
parameters and soil and air quality data.
For the biotic environment an ADI with an area of 75 ha was defined. This area was determined by
using the eco-systemic landscape and elements representing natural or artificial barriers such as
roads, basins, and watersheds. Additionally, an AII with an area of 268 ha was defined. This area was
determined by using the same eco-systemic landscape and elements as for the ADI.
Page 20.8
AMENDED
The abioticNIand bioticTECHNICAL
43-101 ADI and AII REPORT
environments are shown in the following map:
Page 20.9
AMENDED
The areas NI 43-101 TECHNICAL
of influence defined forREPORT
the socio-economic environment are:
 Area of Direct Influence (ADI): refers to the presence of visible or perceptible impacts
directly from project implementation at the various stages. The locations concerned
are: the villages of San Ramon, Ventiadero, San Francisco, the Cejita, Rio Negrito,
San Felipe, Playa Larga and San Jose de la Ahumada and the rural jurisdiction of
Santa Rosa de Osos Municipality;
 Area of Indirect Influence (AII): refers to those territorial jurisdictions (districts and
villages) associated with those communities that will be indirectly affected, in a
cumulative or in a residual way. The locations concerned are: Hoyorrico Villages,
San Isidro, the Malambo village and the urban center of Santa Rosa de Osos
Municipality; and
 Specific areas of influence (Project Footprint): related to the 60 ha site where the
footprint of the mining project is located, and also where the existing Company camp
is located. The locations concerned are those that are part of the territorial jurisdiction
of the villages of San Ramon and Ventiadero.
Page 20.10
20.5.3 Abiotic Environment
Climate
The regional climate is classified as cold-very humid with an average temperature of 15°C and a
relative humidity of 85%. The project is located at an approximate altitude ranging from 2,300 to
2,500 m ASL and the total annual rainfall lies in the range of 1,800 mm and 2,300 mm.
Page 20.11

Rainfall characteristics REPORT
of the area establishes there are two periods of high rainfall in the region;
during the first half of the year the months with most rain are April, May and June, during the second
half of the year they are September and October.
Regional and Local Geology
Regional Geology
The project is located in the highlands of Santa Rosa de Osos on the Central Colombian Andes
Mountain Range in the northern center of the Antioquia department. It corresponds to an ancient
erosion surface, shaped by the actions of climate and tectonic uplift, to present now a relief of hills and
valleys colluvial-alluvial carved into a very thick blanket of alterations (80 - 90 m), produced by the
weathering of Antioquia Batholith granodiorites. The Antioquia Batholith has an area of 1600 km2 the
highest areas are located between 2,900 - 2,950 m.
The ADI of the project is located entirely in the highland area, which are alluvial plains formed with little
or no consolidated materials.
Local Geology
The local geology is characterized by a monotonous sequence of gradiorite to diorite rocks belonging
to Antioquia Batholith. Methamorphic rocks including amphibolite and metasediments are shown as
isolated hanging walls; diorite, dacite, felsite, aplite and pegmatite dykes are also present. A brownish-
red saprolite is well distributed along the area up to 40 m in depth, it is represented by granite altered
to clays. Soils are often 50 cm thick and rarely up to 2 m. Mylonite in a schistose shear-zone was
detected along some outcrops and adits.
Soils
The ADI of the project soils are mainly cold thermal soil, where the relief presents slight steep slopes
(25%-50%), with susceptibility to erosion and landslides. These are very deep soils with medium
texture, good natural drainage, highly acid with low fertility, high aluminum saturation, high phosphorus
fixation capacity, with varying pH.
The current land use in the ADI corresponds to upper secondary vegetation for forestry production-
protection land (5 ha) and land devoted to livestock ranching that are in weedy grass cover and low
secondary vegetation (14 ha).
Water
The AII of the project is located within the basin of the Guadalupe River which is the recipient of major
streams, such as San Francisco, San Ramon, and La Veta. However, the proposed mining activities
do not directly affect the Guadalupe basin.
Page 20.12
AMENDED NI 43-101
The total ADI TECHNICALforREPORT
area established the project is 3 km² , of which 76% is the San Ramon micro-basin
and the remainder belongs to the micro-basin of the San Francisco at 24%.
Page 20.13
AMENDED NI three
Water in the TECHNICAL
43-101streams in the REPORT
vicinity of the project area has been monitored over three campaign
periods during 2012 and 2013 to cover seasonal variations.
The monitoring programme covered both water flow rates and water quality.
The following charts show the results from the three campaigns (Campana 1, 2 and 3), for water flow
rates (Cauda) expressed in litres/sec, and also a water quality graph:
La Veta Creek
Page 20.14

San Francisco Stream
San Ramón Stream
Page 20.15
AMENDED NI 43-101 TECHNICAL REPORTGuadalupe River
Water quality graph
Page 20.16
NI 43-101 TECHNICAL
AMENDEDCampaign REPORT
1 (Campana 1) = 24-25th Sept 2012
Campaign 2 (Campana 2) = 28-29th Oct 2012
Campaign 3 (Campana 3) = 28-29th Jan 2013
Water quality values (as shown on graph above):
ICA Value (Valor ICA) Water Quality

0 - 20 Poor
20 - 50 Bad
50 - 70 Good
70 - 90 Very Good
90 - 120 Excellent
ICA VALUE = ICOMI, ICOMO, ICOSUS, ICOpH, ICOTRO
MI = Minerals
MO = Organic Materials
SUS = Suspended Solids
pH = Acidity
TRO = Trophic Pollution
Air
In order to establish the initial conditions, levels of gas concentration and particulate matter were
recorded at four different sampling stations (see map below) to establish the project baseline.
Air quality monitoring was conducted in the area of influence of the project, which determined that all
concentrations are below the maximum allowed levels under the reference conditions provided in the
Article 2 of Resolution 610 of 2010 MAVDT.
Page 20.17
The air quality index for certain pollutants monitored (PST, PM10, SO2, NO2 and CO), show that in the
project area air quality is good, indicating that the concentration of any pollutants in the atmosphere
presents a low level of air pollution and very low risk to the exposed population's health, also
anthropogenic activities in the area represent low impact on air quality according to the contaminants
monitored.
Page 20.18
AMENDED
An important relatedTECHNICAL
NI 43-101 REPORT
aspect for the future operations is the wind direction. This was undertaken over
extended periods of time, and demonstrates a relatively continual dominance in the north westerly
direction, as shown by the wind rosette example from the survey:
NORTH
25%
20%
15%
10%
5%
WEST EAST
WIND SPEED
(m/s)
>= 10,8
8,1 - 10,8
5,3 - 8,1
SOUTH
3,1 - 5,3
1,7 - 3,1
0,6 - 1,7
Calms: 19,59%
This rosette shows the wind direction from source.
This result is important in that virtually all air movement past the operations will travel towards an area
(North West), where no communities or infrastructure are situated for many km.
Landscape
The project area has a landscape of highland and a relief type of ridges, hills, terraces and valleys,
where small watercourses form a network, draining the area’s rainfall to the major collector which is the
Guadalupe River. Four types of coverage in total are identified: forest plantations, stubble, pastures,
and agricultural crops.
Page 20.19
AMENDED NI 43-101
The following TECHNICAL
map shows REPORT
the respective areas of vegetation, agricultural cover, and types of soil cover
over the landscape surveyed for the baseline studies.
Page 20.20
Page 20.21

Noise
Sound pressure levels were determined in the project area, by monitoring various points of the four
zones of the influence area.
These measurements indicated that the sound pressure levels managed to exceed standard maximum
levels but only in places where the main source of the cause is the activities of the local population.
The property poses no noise issues as it is located in a secluded area. This is also borne out by the
wind direction survey which shows that virtually all air movement past the operations will travel towards
an area of no communities or infrastructure for many Kilometers along that direction.
In addition, detailed noise and vibration models of the planned operations were carried out by a
consultant, which showed that although the mining and processing operations will have an impact, the
study provides mitigation measures to ensure minimal impact. The wind direction data has been of
benefit in this modelling process.
20.5.4 Biotic Environment
Regional Description
The project area is characterized by being in the bio-geographical region of the Andes, in the North
Andean province, which has a total area of 212,227 km2 of the country and has been extensively
transformed by human activity, an analysis confirmed in the study area of the project, where most of
the area has been used for the development of livestock, agriculture and to a lesser extent, for mining
activities.
As a result of these activities, the transformation of natural ecosystems in the area is clear. The once
large areas of dense gallery forests and lower mainland, were gradually replaced by crops such
Cyphomandra Betacea (tree tomato or tamarillo) and others less representative such as Zea mays L.
(maize). Most of the original intervention is mainly due to the clearing of natural areas to establish and
improve extensive livestock grazing.
Classification of the area of direct and indirect influence is located in the settlements in the Lower
Montane Wet Forest (with average temperatures between 12°C and 18°C, annual precipitation
average between 2,000 mm to 4,000 mm and a potential evapotranspiration of 0.5 to 0.25 mm/month)
which is located in the temperate latitudinal subtropical region.
The Santa Rosa Gold Project is inside the “Selva Andina" formation, which corresponds to areas
located in the higher parts of the mountain ranges. In general this vegetation is characterized by lower
variety of species compared with the formations at lower elevations. The amount of vegetation is also
comparatively less.
The ADI and AII are within the Great Tropical Rainforest Biome, which occupies an area of 105,632 ha
of the country and characteristically includes two main types of climates - warm wet and moist warm.
Page 20.22

Flora
The representative vegetation of the Santa Rosa Gold Project is common in Colombian
agroecosystems and is mainly represented by the clean pastures and weed types such as the tree
tomato. Regarding the ecosystem importance, the most representative ground covers are low dense
upland forests, gallery forests, peatlands and secondary vegetation.
The following tables present the types of land cover for the respective types for both AII and ADI
categories:
Land coverage present in the biotic AII
Ground Cover Area (ha) AII
Gallery Forest and riparian 5.2

Mainland lower dense forest 1.3
Corn 0.3
Weedy pastures 54.8
Clean pastures 73.8
Conifers plantation 32.6
Infrastructure 5.9
Rivers 0.3
Barren Land and degraded 1.9
High secondary vegetation 23.6
Lower secondary vegetation 43.8
Mining extraction sites 2.3
Wetlands 4.6
Total 250.4
Land coverage present in the biotic ADI
Ground Cover Area (ha) ADI
Corn 0.2
Weedy Pastures 37.2
Clean Pastures 8.1
Road network, railways & associated land 4.0
Barren Land and degraded 2.6
High secondary vegetation 16.3
Lower secondary vegetation 22.0
Wetlands 2.1
Total 92.5
Page 20.23
AMENDED
Two endemicNI 43-101 TECHNICAL
and considered REPORTvaluable species are located in the project area. These are
ecologically
roble (type of oak), and helecho sarro (type of fern) – see below.
Permission to remove a small identified quantity of these species has been submitted at the National
Environmental Authority (Ministry of Environment) and a specific compensation plan has been
developed according to the national forestry compensation regulations, outlining a tree replanting
program.
Oak (Roble - vulnerable) Fern (Helecho sarro – forbidden)

Fauna
In the baseline study area, indirect sampling involved a review of available information about the
species potentially present in the (ADI and AII) study area. The review included scientific papers
regarding wildlife herbs, birds and mammals present in the Antioquia Department. Another indirect
method was finding traces of fauna such as faeces, skins and footprints; these were complemented by
community surveys.
Amphibians
Investigations show the presence of three amphibian species belonging to two distinct families, and
one common frog in the ADI. It is noteworthy that all species are endemic, and two species were found
to be in the threatened category.
The main habitat of this wildlife is found in is wetlands or areas with some water accumulation, peat
areas, forests and low secondary vegetation.
Reptiles
Four species of reptiles were identified in the different habitats in the baseline study area and showed
a preference for the secondary vegetation and forest coverage. This is due to the fact that these are
the habitats in which the greatest amount of food supply (insects, birds, small mammals and
amphibians) were observed, because of the varied vegetation structure.
Given the wide range of habitats and microhabitats the species were easily observable in many
different locations particularly under dead vegetation, and soil.
Page 20.24

Birds
Within the ADI of the project, a total of 69 bird species corresponding to 35 families and 13 orders were
recorded, the most diverse group were of passerine birds or songbirds. Hummingbirds and swifts were
commonly recorded. The flight condition of the birds and their constant movement allowed registry
throughout the area of study and also a large number of active nests suggesting reproductive
conditions of many species at this time of year were recorded.
With reference to the International Trade in Endangered Species of Wild Fauna and Flora Convention,
it was found that 11 species were listed that are not necessarily threatened with extinction, but in which
trade must be controlled.
In the area directly affected by the project area, some of the best mulches to establish some bird
communities such as passerine and hummingbirds are found. Forested areas are well represented,
allowing birds to be constant movement using riparian vegetation and canopy for movement corridors.
The forest canopy provides more resources for feeding and protection from predators for many of the
species recorded and have aided bird settlement
Secondary vegetation and forests were the habitats that presented greater species diversity. Typically
there are rivers, wetlands and grasslands with a similar richness of species. The least favourable
coverage for birds are crops, conifer plantations, bare land and the urban fabric, typical of the project
area.
Mammals
In the area directly affected, seventeen species of mammals, distributed in eleven families and six
taxonomic orders were identified.
Within these mammals are: fara, chucha, opossum, armadillo, gurre, several species of bats, fox,
weasel, squirrel, house mouse, mouse bush, hedgehog and rabbit.
20.5.5 Socio-Economic Environment
Population Dynamics
In the ADI of the project, there is currently a population of 1,077 individuals, of these, 56% are female
and 46% are male.
The prevailing trend of female over male population is evident in almost all the villages of the ADI,
except in the village of San Jose de la Ahumada.
Page 20.25
Infrastructure and Sanitation
Public Services
Public service coverage in the ADI are as follows:
 water supply 36%;
 sewerage 3%;
 electricity 97%;
 gas 74%;
 telephone landlines 1%;
 cellular 98%;
 sanitation and collection services 31%.
Page 20.26
AMENDED
Solid NI 43-101
Waste TECHNICAL REPORT
Disposal
The predominant mechanism for the disposal of solid waste in the ADI is by burning, this represents
49% of the population in the ADI.
Collection is then followed with 17%, followed by disposal on open ground and burial which correspond
to 15% and 16%, respectively.
The sanitary landfill is the least used mechanism for solid waste disposal with only 6%.
Wastewater Disposal
The predominant type of disposal of wastewater is in the open field or open pit with 85% coverage, the
septic tank system represents 15% of use in management of wastewater discharges.
Domestic Water Catchment
There are two predominant systems in the ADI water catchment area, the predominant one is the use
of springs with 74%, followed by piped system with 26%.
In the village communities, San Ramon, Playa Larga, Rio Negrito, there is only spring water collection.
Page 20.27
AMENDED NI 43-101
In San Francisco andTECHNICAL REPORT
the Cejita village, there are three types of available systems (springs, piped and
rainwater).
Transportation
The means of transport used by the inhabitants of ADI are predominantly public motor transport and to
a lesser extent motorcycles, bicycles and horses.
Social Services
Social security coverage is a subsidized system where 74% of the inhabitants of ADI are enrolled. The
remaining members of the population obtain cover through a contributory scheme.
According to the population survey and health records the most prevalent diseases within the
Community are respiratory, digestive and cardiovascular.
Settlements
Types
There are two types of settlements present in the communities located in the ADI, these correspond to
widespread and semi-urban types. The San Ramón village is only the community which can be
regarded as a semi-urban settlement.
Page 20.28
Properties
In the ADI small farm type properties are predominant, these being small farms of short and medium
land area (3 ha to approximately 600 ha).
The following map shows the distribution of properties with respect to the project area.
The remoteness of properties to the Project area should be noted:
Page 20.29
The predominant types of homes are privately owned houses, characterized by family legacy, which is
developed from the main economic activities of agriculture and small scale artisanal mining.
Page 20.30
AMENDED NI 43-101
The photographs TECHNICAL
below REPORT
show views from the south looking up and across the San Francisco valley,
which is the immediate west of the Project area. Careful design and attention was made to the Project
layout, to ensure this beautiful valley remained totally undisturbed. A high ridgeline separates this
valley from the project area, completely screening it from view.
Most of the properties are relatively old, with a majority built over 20 years ago:
 50% of homes in the ADI were built over 20 years ago;
 8% of homes were constructed 16 – 20 years ago;
 9% between 11 to 15 years ago;
 15% have been built between 5 – 10 years ago;
 9% were built less than 5 years ago.
The residents of the ADI are native inhabitants of the municipality and the Antioquia region, and they
have deep roots in the area.
In the ADI, 23% of the population has lived over 25 years in the region and 20% of the population has
lived there between 11 to 25 years.
Page 20.31
AMENDED NI 43-101
The predominant TECHNICAL
wall material in REPORT
the ADI houses is brick with 71%, followed by mud walls with 22%,
the precast type represents 3%.
Social Organization
Industry
The principal industries in the Municipality of Santa Rosa de Osos are primary and include:
 Dairy cattle;
 Forestry;
 Poultry farming;
 Production of tomato trees (tamarillos);
 Pig farming;
Socio-Cultural Identities
The communities in the ADI are defined as rural, using the land for subsistence. Some families work
full-time for farmers/land owners, some for their own production.
Historically, a small part of the settled community has engaged in artisanal mining activities. The
community considers themselves predominantly as farmers and only a small number are artisanal
miners.
Sociocultural System and Practices
A basic sociocultural system is widespread throughout the population of the Municipality of Santa Rosa
de Osos. They have strong religious beliefs (in which the Catholic faith is predominant), and visiting a
local church on a regular basis is a common activity.
It is a rural and urban population with good manners, friendly and cordial. They have patriarchal
relations with their family and although being relatively dispersed from each other, (especially in the
rural area), they maintain strong communication with neighbours from their community.
Archeological Heritage
The archaeological study had the support of the Colombian Institute of Anthropology and History. This
resulted in a report and management plan which was approved by the Institute in January, 2014.
Page 20.32

The archaeological REPORT
study was based on the analysis of landscape and its components, seeking to
establish the basic units on which humans developed their actions in the past, changes produced by
them over time and the potential that the environment offered. The result of the archaeological study
fieldwork led to the conclusion that certain remains found in the region, do not affect the area of the
footprint of the Project.
As a preventive measure an Archaeological Management Plan was formulated for implementation

during the stages of construction, and operation of the project and will be used if necessary.
20.6 Corporate Social Responsibility
20.6.1 Introduction
The Company has a key corporate strategy of social responsibility, this is to ensure the Company´s
reputation, social license to operate, and long term sustainability. This is achieved by adopting at all
times a transparent and ethical behaviour and maintaining harmony and balance with the local
communities.
This corporate strategy includes maintaining relations with all relevant stakeholders and communities,
by the implementation of the social management plan.
It is supported by the following objectives:
 By undertaking all activities with the highest regard for social and environmental
responsibility;
 By strengthening relationships through shared responsibility, based on dialogue and

participation with all stakeholders;
 By promoting collective processes of regional development; and
 Acting within a framework of respect for human rights.
20.6.2 Relations with Stakeholders
During 2012, Red Eagle Mining commenced the identification and implementation of a stakeholder
relations plan. This was designed to generate communication channels to establish, maintain and
improve relations with the various stakeholders, as well as timely and quality responses to their
requests and concerns.
The following actions and programs have been established as part of this stakeholder relations plan.
Page 20.33
43-101 TECHNICAL REPORT

AMENDED NI Office
Information
An information office has been established in the town of Santa Rosa de Osos with the purpose of
allowing ease of communication between the local population and the Company.
The principal functions of the office are:
 Receive, address and/or direct with the Company any queries, suggestions, opinions,
and/or claims from citizens;
 Monitor and control these requests in order to ensure they are resolved quickly and
adequately;
 Serve as an information and guidance centre for the Santa Rosa Gold Project and
the Company´s activities; and
 Serve as a future recruitment centre for advertising job opportunities, receiving

applications and also to invite interest from suppliers and contractors for the Project
needs.
Education
Communicate and educate stakeholders about responsible mining activities and modern mining. It has
been a key strategy to seek community and stakeholders’ trust in the Company’s present and future
activities. This process has been facilitated by the following activities:
Red Eagle Mining provides a monthly contribution to a regional environmental and agricultural
newspaper called “Antioquia Si Tiene Norte”. This is a publication lead by Santa Rosa de Osos, where
all municipalities of the north region of Antioquia show their efforts in protecting and preserving nature
and agricultural best practices. It has a circulation of approximately 50,000 copies monthly. The page
addresses and answers the most common concerns stakeholders have regarding the project;
The Company has also commenced publication of a corporate newsletter with the aim to regularly
inform all of the stakeholders of the development and progress of the Santa Rosa Gold Project, and
includes activities related to social and environmental initiatives and best practices; and
A 20 page activity and colouring book aimed at educating children about the world of modern and
responsible mining, including for example: What is mining? How is the ore processed? and other
related social and environmental practices.
Page 20.34

AMENDEDConsultation
20.6.3
Since commencing the Environmental Baseline Study (EBL) in September, 2012, the Company has
undertaken 67 information and consultation meetings and workshops with all stakeholders of the Santa
Rosa Gold Project including: local government, dioceses and churches, economic sectors,
environmental and mining authorities, NGOs, municipality teachers, youth movements, university
students and each community of the ADI. Many of the consultations included site visits. The aim of the
consultation and information processes is to seek input from key stakeholders on the proposed mine
plans and discuss any questions or concerns they have about the planned future mining operations.
The table below summarises the meetings and workshops conducted, with each stakeholder and
associated sub-groups.
Page 20.35

Group Stakeholder Information and Consultation Meetings
 Project Information and Consultation
National Government Ministry of Environment
Meetings
National Institutions Chamber Of Mines
Meetings, including a Site Visit
International Institutions Canadian Embassy  Project Information Meetings
Meetings and Site Visit
 Environmental Baseline results
Central Government Secretary of Mines
information meetings and feedback.
 EIA Summary Information Meetings and
feedback
Central Environmental Environmental Authority  Environmental Baseline results
Entity (Corantioquia) information meetings and feedback
 Exploration activities information
meetings
Santa Rosa De Osos Mayorality
information meetings and feedback
feedback
Local Government and Meetings and Site Visit
Entities  Environmental Baseline results
Councillors
feedback
Presidents Community Action Boards
Economic Sector
information meetings and Feedback
Local Environmental  Environmental Baseline results
Corantioquia Tahamies
Entity information meetings and feedback
feedback
Church Diocesis of Santa Rosa De Osos
feedback
Universities  Project Information and Site Visit
Education
Local Teachers
Page 20.36

Group Stakeholder Information and Consultation Meetings
Central NGOs
NGOS Meetings and Site Visit
Local NGOs  EIA Summary Information Meetings and
feedback
 Protected areas meeting
 Exploration activities information and
education meetings and feedback
Meetings
 “My Dream Territory”, Social Baseline
identification workshop
Area of Direct Influence
 Impacts Identification and Management
Plans workshops
feedback
Communities  Project Information and Consultation
Area Indirect Influence
feedback
Young People Of Santa Rosa De information meetings and feedback
Osos
 Mining workshops
feedback
20.6.4 Social Management Plan
Red Eagle Mining has implemented a social management plan, which includes practices and initiatives
involving local communities and other stakeholders, and is summarized as follows:
 Schools Assistance Workshops
Regular monthly workshops are conducted in the five ADI schools to address different topics
such as care of the environment, water use and management, waste management and to
promote positive social attitudes, values and behaviour, through the use of video and other
media where the pupils are able to actively participate.
 Adopt A Tree Program
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NI 43-101 REPORT
the environment is the social responsibility of every individual. The “Plant-A-Tree
Program” has been developed to teach children of our ADI to actively participate in the
improvement of their villages by planting trees around their schools and adopting them.
Approximately 200 native trees have been planted to date.
 Mining for Non Miners Course
In association with the Mining Association of ANDI (National Industrial Association), one day
courses are held to provide the community and stakeholders from a non-mining background,
with a basic, but comprehensive understanding of the mining industry and associated best
environmental and social practices.
 Computer Education Program
The Company has established an alliance involving the education department of the local
government, the local Catholic University Foundation and the La Cejita School (located
closest to the project site), to implement a virtual learning education program to assist
interested parties from nearby villages (La Cejita, Ventiadero, San Francisco, La Cabaña,
Aguaditas and San Isidro).
The programs will comprise courses at three levels of computer literacy and competency.
 Infrastructure Investment
The Company is also committed to assist development and the improvement of the quality of
life of the communities through sustainable infrastructure projects. To date, these have
included:
o Sports Facility in San Jose de la Ahumada School
In conjunction with central and local government and the local community, the
Company provided some of the materials necessary for the construction of the sports
facility at a local village school. This facility will be used by twelve villages, benefiting
more than 1,200 people.
o Sports court in San Francisco village
Together with community the Company has contributed construction materials for the
sports court in San Francisco village, benefiting 55 families.
20.7 Natural Resource Requirements
The following table sets out an estimate of the requirements for natural resources that the project may
need during construction and operations of the Santa Rosa Gold Project:
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Natural Resource REPORT Technical Specifications
 The water supply project for the camp will be held
through two water concessions granted by
Corantioquia from the Monte San Isidro and Quebrada
La Negra streams.
Surface Water
Water  The camp has a treatment system to purify water for
human consumption.
 Additionally, a by-pass pipe system will be established
to collect water from the La Veta spring, which will be
used, for process plant make-up water.
 The project will use groundwater that is available at
surface from the Hilo Azul mine shaft developed
Domestic and industrial during the former mining activities. In addition water
Underground Water
water inflow resulting from underground operations will be
collected, clarified in settlement traps, and used for the
mine and process plant raw water supply.
 Waste discharges from sanitation, washing of clothes,
kitchen use and cutting drill core, will be processed
through independent treatment systems comprising
Accommodation Camp
grease traps, settling tanks, septic tanks and
anaerobic up-flow filter, with discharges directly to
several points in the San Ramon stream bed.
 During project operation two integral sanitary facilities
will be installed in the area near to the mine site and
Sanitation from the
processing plant with sufficient capacity to meet the
operations
wastewater generation for 100 people per day (50 per
location).
 Implementation of compact wastewater treatment
Waste Disposal systems comprising three stages: primary
sedimentation; biological treatment and secondary
sedimentation.
 Additional exploration activities will use a drilling mud
treatment system consisting of three in-line tanks:
Industrial waste water from 2000, 3000, and 5000 litres capacity, to settle and de-
the mining activities silt the water.
 Water from the underground mine will be pumped into
a clarifier and will be re-used for underground drilling
and other processes.
 These industrial discharges will be fed to the La Veta
creek after treatment complying with Colombian
legislation.
The project will partially occupy the La Veta creek, where dry and barren tailings will be
deposited.
Riverbed Occupation
Minor construction works will be conducted on necessary access road sections and
drainage channels.
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Cement and rebar  Most will be sourced and transported from Medellín
city.
 There are no identified quarries in proximity to the
project site for construction aggregate and other rock
materials. Therefore the waste material
(granodiorite),resulting from the excavation and
construction of the main access tunnel during pre-
production development, will be used as a source of
raw material for aggregate and other rock construction
requirements.
Building Materials
 Waste rock from underground not used for
Aggregates
construction materials or underground backfill, will be
disposed in the tailings storage facility located near to
the processing plant. This rock will also be available
for crushing and use on road maintenance around the
ADI villages.
 If suitable construction material is not available from
the project for any reason, this will be sourced from a
regional provider who has the proper mining and
environmental permissions.
 Excavations and storage will take place within the
Topsoil removal and footprint of the project. It is estimated that 10,000 m3 of
storage, for re-use later for soil will be removed and retained for future use.
Excavation and progressive reclamation and  A borrow material area has been defined, located
Earthworks landscaping through to final south east of the dry tailing deposit and will make use
closure. of an existing depression in the surface topography
caused by historical mining. It has sufficient volume to
contain the volume planned to be stored.
 The site consist of clean pastures, weedy pastures,
high and low secondary vegetation, no logging
Forestry Timber market
operations are necessary or planned in the project
footprint.
Mobile and stationary
Atmospheric
sources during construction  No specific permit is required for air emissions.
Emissions
and operation phases.
Page 20.40

Building stage.  Estimate = 25 kg/day (50 persons)
Operational Stage.  Estimate = 60 Kg/day (135 persons)
 For integrated solid waste management it is planned
to identify, separate and sort the waste, with the
various types being stored in containers as follows:
- grey trash can: plastic, paper, cardboard, cans and
glasses;
- green trash can: wrappings, napkins, sweeping
debris, or anything that cannot be re-used again;
Domestic
- red trash can: hazardous waste (grease, cotton
waste, oils, contaminated containers);
- organic waste will be given away to workers for use
Solid Waste as compost;
- ordinary waste will be managed by the municipal
collection services for disposal at the local nearby
landfill.
 Hazardous and special waste will be stored in
temporary locations preventing contamination of soil
and water bodies for subsequent delivery or collection
to a hazardous waste management company properly
certified by the environmental authority.
Industrial
 The dry and barren tailings material will be deposited
in the dry waste management facility (DWMF) located
east of the processing plant, and will be progressively
covered with topsoil and revegetated from the northern
end retreating to the south of the DWMF.
20.8 Environmental Assessment
20.8.1 Assessment Process
The Environmental Impact Assessment is a process and tool used to identify any positive or negative
impacts on the environment and social framework caused by a Project.
The process involves an assessment of environmental impacts for the Santa Rosa Gold Project and
considers the inter-relationship between the biotic (flora and fauna), abiotic (water, air, soil), social
(economic and cultural) and the project activities, in all of the development stages; exploration,
construction, operation, closure and post-closure.
The table below identifies the impacts.
Page 20.41

Component REPORT
Element Environmental Impact
 Physical, chemical and microbiological alteration of water
Groundwater quality;
 Alteration in the availability of water
 Physical-chemical and microbiological changes in the water
properties’
Surface Water  Sedimentation in natural bodies of water;
 Change in surface drainage network;
Abiotic  Change in the available water supply.
 Change in particulate matter concentration in the air;
Air and Noise  Change in local measured gas concentrations;
 Change in sound pressure levels.
 Change in soil usage;
 Alteration in the physical-chemical and biological
Soil
properties;
 Geotechnical stability alteration.
 Changes in the composition and structure of animal
communities;
Fauna  Change of habitat;
 Modification of biological paths;
Biotic  Temporary dispersion of animal species.
 Alteration of distribution, structure and floristic composition
of natural vegetation cover;
Flora
 Fragmentation of natural vegetation cover;
 Alteration of the forest reserve areas.
Page 20.42

Component REPORT
 Compliance level in the population;
 Generation of employment expectations and social
benefits;
 Change in community management;
 Change in institutional management;
 Change in community empowerment;
 Changes to the environmental understanding of the
Community Engagement community;
 Presence of guidelines with land use planning;
 Change of perception about mining exploitation;
 Alteration in power relations;
 Change in institutional community engagement;
 Changing roles of responsibility by local governments;
 Conflicts generated by the resistance to changes;
 Conflicts generated by expectations.
 Alteration of scenic beauty and landscape quality;
Landscape
 Changes in visual and aesthetic perception.
 Change in Accident rates;
Socio Economic  Health alterations caused by particulate matter;
Public Health
 Alterations in accidents and incidents rate (road, social and
environmental)
 Changes in availability and accessibility of services;
Public
 Changes in connectivity and population mobility;
and
 Alteration of existing road infrastructure;
Social Services
 Changes to private property due to traffic on existing roads.
Archaeology  Changes in archaeological heritage.
 Sociocultural changes in community patterns;
 Social changes in security of the population;
Culture  Changes in education, training and technology transfer;
 Changes in traditional cultural symbols of the population;
 Changes in the traditional conception of the world.
 Changes in the rural population;
 Changes in population dynamics by displacement and
Population Dynamics resettlement;
 Changes in population dynamics of ethnic communities;
 Variation of the floating population.
Page 20.43

Component REPORT
 Expectations generated by income from royalties;
 Change in gross domestic product;
 Variation of local and national tax revenue;
 Change of the artisanal mining;
 Change in supply, demand of goods, services and
production chains;
 Changes to the traditional economic model;
Economy  Labour migration;
 Change in labour supply;
 Change in unemployment rate;
 Variation in quality of life;
 Change in the average income of the community;
 Change in land tenure;
 Change in land market value;
 Change in living costs.
20.9 Impact Assessment
These potential impacts are quantified by applying qualifying criteria to define and classify the impacts
with a significance of High, Medium and Low.
These impacts, when considered with project development activities (exploration, construction,
operations and closure), resulted in 451 interactions, which are evaluated under certain qualification
criteria with the following results:
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NI 43-101
The analysis REPORT
the major impacts which are identified by a negative score and shows areas of the
environment that may be impacted by the project and where mitigating measures may be necessary.
The positive scores show impacts of a positive nature that will improve the environment and socio-
economic conditions in the region.
The conclusions of the impacts to the socio-economic environment are summarized below:
 The assessment was carried out with the participation of the local communities and
other stakeholders, who were actively involved in the identification of the possible
impacts. Some communities could have the potential for changes in their lifestyle,
these have been identified and recognized and can be managed effectively with no
negative impacts;
 Culturally the local communities are willing to accept change and have good potential
to benefit themselves, through the positive impacts of the project;
 The project footprint lies within an area owned by a single landowner, therefore
limited effect on land or property tenure; and
 There are no impacts related to displacement of the population and any impacts on
their way of life are minimal. The remote location of the project in relation to the local
communities and population, assists in minimizing any potential impacts.
It can be concluded by the quantitative and qualitative analysis of the identified potential impacts, that
these can be managed through comprehensive, effective and well managed environmental strategies.
There is a high potential for the social environment to be developed and benefit from sustainable
programs in the Project execution area.
For every negative impact identified in the EIA, environmental management measures are detailed in
the complimentary EMP.
20.10 Environmental Zoning
For the EIA, an environmental zoning process is carried out, using methods prescribed by the
Environmental Authority, to determine the areas of influence and the identification of possible
environmental impacts for the development of the project in all of the future stages.
The results of the environmental zoning for Santa Rosa Gold Project are as follows:
Page 20.45
20.11 Environmental Management Plan
20.11.1 Introduction
An EMP is an obligatory part of the process required by the Environmental Authority when granting the
Environmental License. The EMP details the proposed management policies, strategies, monitoring
programs and actions to be implemented by the Company to prevent, mitigate, correct, or compensate
any impacts that may occur during the entire lifespan of the project.
Each of the identified impacts for the project will be managed through effective environmental and
social action programs.
20.11.2 Management Programs
The management programs shown below have been developed to mitigate any negative effects of the
project and strengthen the positive ones in each of the development stages of exploration,
construction, operation, closure, and project post-closure.
The project EMP includes 22 programs for environmental management of the abiotic (water, air and
soil), biotic (flora and fauna) and socio-economic (social, cultural, economic and archaeological)
environments affected by the project. Each of these programs is explained in a practical manner and
clearly identifies their objective and at which stage of project development they occur. An action plan
for each program will include the necessary human and financial resources, technical details of the
measures to be used, logistical requirements, scheduling and reporting functions.
Page 20.46
AMENDEDand
Tracking NI 43-101 TECHNICAL REPORT
Monitoring
Included in the EMP is a Tracking and Monitoring program (TMP) to evaluate the efficiency and
effectiveness of management measures adopted in the EMP.
These programs allow the tracking of the commitments and obligations established in the EMP in order
to verify compliance. They serve as a tool for the Environmental Authority to monitor the commitments
throughout the lifetime of the project, to assess the efficiency and effectiveness of the measures and
make any corrective actions should any be necessary.
The TMP seeks to design and establish the tools to check the status of compliance programs proposed
in the EMP, to analyze trends in the quality of the environment in which the project is developed, to
validate the anticipated environmental impacts and verify the effectiveness of EMP measures.
The TMP allows an ongoing assessment of the measures through monitoring indicators, to identify the
need for any adjustment, if required, to any changing conditions as they arise during the development
of the project.
The TMP ensures that the objectives of the programs defined in the EMP are effective and continue to
be valid for the life of the project.
The tables below show a summary of the programs with the corresponding monitoring program for the
Santa Rosa Gold Project:
Page 20.47
AMENDED
Abiotic NI 43-101 TECHNICAL REPORT
System
Environment Program Format Monitoring and Tracking

Management of soil  Monitoring of erosion and
EM soil management
resources sediment yield
 Monitoring the
Dealing with dry, sterile
EM dry and barren tailings morphological restoration of
tails
mining areas
Management of domestic  Management of domestic
wastewater from camps wastewater from camps
and mining areas and mining areas
Management of industrial  Management of industrial
wastewater from the wastewater from mining
access portal operations
Management of drilling  Management of drilling
wastewater (aqueous wastewater (aqueous
slurry) slurry)
EM of water resources and
Water management of  Tracking and Monitoring of
erosion control works
the deposit of dry and runoff water and tailings -
barren tailings sterile
Management of runoff
water (rainfall)
Management of  Monitoring of watercourse
watercourse crossings crossings
Abiotic (Physical)
Management of water  Monitoring catchment
catchments (domestic and management
industrial)
Management and control  Monitoring gases and
of gases and particles particles
Management and noise
control
Dealing with noise and
EM of air resources vibration from the use of
explosives in mining  Monitoring of decibel level
production process
Alarm system and
prevention with the use of
explosives on site
Domestic and Industrial
Solid waste EM
Solid Waste
Management
 Monitoring of Domestic and
Fuel and chemicals Industrial Solid Waste
EM fuel and chemicals
management
Blast and explosives
EM blast and explosives
management
Page 20.48
AMENDED
Biotic NI 43-101 TECHNICAL REPORT
System

Wildlife management,
Wildlife management
forestry and revegetation
programs
of disturbed areas
Conservation of
vegetable and animal
Fauna and flora species with some level
preservation program of threat either, endemic,
forbidden, unregistered
or unidentified
Program and protocols for Protocols for  Monitoring the flora and
wildlife species management and rescue fauna (endemic, critically
management and rescue of wildlife species. endangered or vulnerable,
species, etc.)
Program for developing and Development of
foster of ecosystems and ecosystems and flora
flora and fauna species and fauna species
affected by the project affected by the project
Biotic
Education and training
staff involved in the
Education and training
project with emphasis on
program for staff involved in
ecosystems and species
the project
of flora and fauna of
particular concern
Use of topsoil covers
such as ligneous plants
Use of vegetation cover
that do not involve tree
planting  Monitoring of Compensation
Compensation Program
Affectation of plant Program
species with some level
of vulnerability and/or
widespread use
Impact on wildlife
Page 20.49
AMENDED NI 43-101
Socio-Economic TECHNICAL REPORT
System

 Monitoring the attention of
any requests or claims and
Community information and Information and
invite participation and
involvement program involvement program
timely information to
communities
Education and training Education and training
program for staff involved in staff involved in the
the project project
Support for institutional
Support program for the
management capacity
institutional management
and strengthening of
capacity.  Monitoring the effectiveness
economic activities
of the Social Management
Employment hiring Plan programs
Local labour hiring program. labour, local services
and general goods
Socio-Económic Program of training, Training, education and
education and awareness of awareness of the
the community surrounding community surrounding
the project the project
 Monitoring the impacts and
Impact program for third Management of impacts social conflicts generated
parties and social risks by the project during
different stages
 Monitoring the population
Social compensation
Social compensation that could be affected by
program
the project
Archaeological findings
Preventive Archaeology
Archaeological  Archaeological monitoring
Program
Monitoring
Promotion
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AMENDED NI 43-101
Management TECHNICAL REPORT
Measures
Abiotic System
Name Objective Activities

Adequacy of access roads
 Perform maintenance and
improvement of roads and drains
 Construction of drains
Management of water runoff and erosion
control
 Avoid steep slopes
 Flow dissipation
 Silt traps
 Drainage channels
 Grease traps
Protection measures to prevent  Collection sumps
erosion, loss of organic layers and  Interceptor channels
topsoil, pollution prevention and Soil protection
any instability.  Careful layer control
Effective disposal of products  Minimise passage of mobile
generated during the mining equipment
operations (waste rock) and
 Control soil with the lowest moisture
Soil Management processing (tailings), to prevent
content
slippage and erosion.
Waste Management
Providing adequate providing
drainage for runoff water. During the construction phase of the
portal and main underground access
Minimizing visual impact, by
ramp waste material will be used as
effective storage planning and
material for the construction of the
control.
project infrastructure, roads, tailings
dam embankment, etc.
During mining operations waste rock
may be used for backfilling stopes to
allow safe and effective mining
operations
Transport of any materials on public
roads will be covered
The tails generated in the gold recovery
process will be filtered to remove
moisture and it is planned for
approximately 50% be returned
underground for backfilling of stopes
and 50% in the tailings storage facility
Mitigate pollution of streams to the The domestic wastewater from the

San Ramon and La Veta creeks by domestic and operational infrastructure
Domestic and Wastewater domestic discharges will be treated in dedicated in WTP’s,
Management with a controlled and managed
To maintain the water quality of the discharge of the treated water to the
San Ramon and La Veta streams existing streams
Page 20.51
43-101 TECHNICAL REPORT Objective

AMENDED NIName Activities
 Where necessary sealing of tunnel
Reduce the potential environmental
walls with the use of shotcrete will
impacts caused by the lowering of
be undertaken; drainage channels
Management and Control of groundwater levels due to
to channel water for storage in
Underground Water underground activities and also
sumps will be pumped to surface for
provide safe operating conditions
re-use in mining and processing
during mining operations.
operations
Treatment of wastewater resulting from
Prevent any possible pollution from
drilling operations, which will aim to
Drill Water Management drilling mud reporting to the existing
remove at least 80% of the solids in
(aqueous slurry) water courses and maintain the
water and make it pH neutral before
quality any discharges
recirculation in the process
Build open drainage channels in the
design of the tailings storage facility to
Establish measures to ensure the intercept and divert runoff flows entering
management, treatment, and the stored tailings and waste.
delivery of rainfall runoff from the Surface water diversion channels to
Runoff Water Management project infrastructure prevent water ponding in any areas
(Rainfall)
Avoid erosion, pollution and any A system of water collection with a water
sediment being deposited to natural sediment collection sump located below
watercourses. the collection sump to control runoff
flows and reduce sediment load before
final discharge to the environment
Maintenance of existing hydraulic
structures such as culverts (single and
Introduce management measures double), which permit the passage of the
for adequate control of drainage at streams, in order to retain the drainage
crossings by existing access roads pattern of the micro-basins and thus
Management of and constructing any new accesses ensure the functionality of the existing
Water Bodies Crossings where exploratory prospects may reticulation system
be located and other infrastructure Adapt bridges across the streambeds
required for the project where necessary
Construction of sediment retention
control structures in the form of sumps
and/or dams
Roads and transport
 Watering of roads and material
discharge locations
 Covering material during transport
 Appropriate vehicles for material
transport
Mining Operations
To mitigate the increase of gas
Management and Control of  Progressive reclamation of waste
concentration on the atmosphere
Gas and Particles areas to avoid dispersion and
(CO, O3, NOx y SOx).
erosion
 Exhaust ventilation system in the
underground mining system
 Bag filters to be installed to trap
particles from the exhaust gases
Equipment and Machinery
 Regular maintenance
Page 20.52

 Proper preventive maintenance
(greasing of moving parts, regular
cleaning, replacement of damaged
Mitigate changes in the decibel parts, etc.)
Management of Noise Control
level  Use electrically powered equipment
where possible
 Construction of perimeter tree
curtains as noise barriers
 Minimising amount of explosives
per charge
 Compensation procedure for any
Prevent potential effects caused by damage caused
Management of Vibration and surface vibration and noise on the
 Limit operations whenever possible
Noise from Explosives Use communities of the directly affected
area. to one blast a day, at the end of the
daily shift
 Provide hearing protection for
operational staff
Household Waste Separation
 Separation procedure at source
contributes to reducing the volume
of solid waste reaching landfills or
disposal sites
Industrial Waste Separation
 Correspond to the Hazardous and
Special Waste (hereinafter
HASWAS) categories which
comprise those classified as
hazardous chemicals, oil residues
and fuels
Domestic and Industrial Solid Control the domestic and industrial Final disposal
Waste Management waste generation in the project.  Organic, will be given away to
employees and workers as compost
 Ordinary will be managed by the
municipal collection services
companies
 Recycled will be marketed in the
town of Santa Rosa de Osos
 HASWAS to be delivered to
companies certified by the
Environmental Authority to manage
and dispose HASWAS
Adoption of the ICMC (International
Cyanide Management Code)
Page 20.53

Fuels
 Will be stored in hermetically sealed
suitably pressure rated containers
Stationary fuel tanks have a
secondary containment system with
a volume equivalent to 110% of the
storage capacity
 Tanks will be installed with an
Prevent and take remedial action impermeable cover on the base to
for any accidental spills of fuels or prevent leakage to the natural
Fuel and Chemicals
chemicals, controlling these on-site ground, in compliance with the
Management relevant regulations
to reduce the risk of affecting the
environment and communities. Chemical substances
 Will be stored indoors, off ground
minimizing the possibility of contact
with water
 Secondary containment systems to
be built into the storage tanks and
cyanide mixing facilities, using
materials that provide an effective
barrier against leakage
Page 20.54
AMENDED
Biotic NI 43-101 TECHNICAL REPORT
System
Name Objective Activities

Flora management
 The use of, or felling of vegetation
that lies outside the footprint of the
project infrastructure shall be
prohibited
 Progressive rehabilitation and re-
vegetation activities will be
conducted whenever possible prior
to final closure
 To identify areas considered of high
environmental relevance and limit
Reduce the impact and effects on any operations accordingly
the flora species local to the project Forestry management
activities  Ensure any felling permits required
Mitigate and/or compensate impacts are issued by the relevant
on areas where vegetation was environmental authority and are
Flora and Forestry valid
removed during project construction
Management
Minimize the impacts of the activity  Demarcation will be done by taping
of removal of ligneous vegetation the area and marking all trees to be
and carry out appropriate forestry felled and trees to be re-located
wherever possible in any areas of  Take into account the disposal of
disturbance wood residues and identify specific
handling and storage areas
Revegetation management
 Re-use the topsoil layer that was
stored after removal prior to project
construction
 To re-plant with the most
appropriate sowing system
according to soil conditions
 An ongoing maintenance program
to be implemented after re-
vegetation.
Protect fauna and flora with priority Having established the presence of
to endemic species, catalogued as these species, removal, blocking,
endangered or forbidden transport, replanting
Wildlife and Flora Conservation Reduce the impact and on plant and maintenance of the species to a
species critically endangered, previously prepared and properly
unregistered or unidentified in the selected site will be required to reduce
area of the project activities the chances of loss of these species
Page 20.55
AMENDED NI 43-101 TECHNICAL REPORT Objective

Name Activities
Education and training for the staff
involved in the project with emphasis on
Encourage the appreciation of the ecosystems and flora and fauna species
natural surroundings and the of special concern through regular
technical aspects of the project by workshops and discussions regarding:
the communities of the area directly  HSE policies
socially affected by the project,
 Environmental regulations and
Education and Training on including the personnel hired for the
environmental commitments related
Ecosystems and Wildlife development.
to company activities
Facilitate the understanding of the
 Prohibition of capture, handling and
environment and create a sense of
unnecessary disturbances to
ownership of the surrounding
wildlife
environment to the project
personnel  Friendly work practices with regard
to the environment
 Efficient use of natural resources
Assuming that is required to remove
existing ligneous vegetation in areas to
intervene it is required to:
 Identify potential sites to be
recovered, specify compensation
with the Environmental Authority
and disclose the information with
Perform compensation for forest the community
Compensation for Forested
exploitation being conducted on  Prepare the area to be recovered,
Areas
areas affected by the project. then replant with the recommended
species, implement a maintenance
program for a period of 18 months
and effect a final handover to the
Environmental Authority
It is proposed to plant 3,165 native trees
as compensation for the disturbance by
the project footprint
 Support for research projects or
repopulation of diverse species that
needs to be carried out in the area
of direct or indirect influence of the
Perform compensation for the project
Compensation for Affected impacts on the fauna and flora,
 Enrichment of habitats for the
Flora and Fauna which may occur on the areas
affected by the project. continuous growth of wildlife
populations through the planting of
suitable species attractive to wildlife
(key species that provide flowers
and fruits)
Socio-Economic System
The socio-economic environment is very important to Red Eagle Mining and the Project. As a result,
ten management programs were developed to ensure a socio-economic license was introduced and
maintained throughout the life of the project. The socio-economic license has been in the process of
development since late 2011 and Red Eagle Mining continues to work with the local communities and
stakeholders in the region.
Page 20.56
AMENDED ofTECHNICAL
NI 43-101
A key component the program REPORT
covering socio-economic environment is the Community Information
and Participation program. This important aspect is presented below, and shows the level of initial
commitment developed by Red Eagle Mining for the program and its on-going commitment in the
future:
Program Objective Activities

Communication and engagement
strategies:
 Newsletters regarding the project
description, the EMP, actions and
progress.
 Information brochures containing
company news announcing progress
of the project and reports
 regarding the implementation of the
EMP
 Press releases about the project's
progress and implementation of the
EMP, including local and regional
cover.
 Information should cover objectives,
steps and actions to develop the
project, with emphasis on those
Inform local authorities, communities and
activities from the technical and
Information and inhabitants of the area of impact, the technical,
environmental perspective
Community social and environmental characteristics of the
Involvement project and the management measures being Community workshops and information
adopted by the Red Eagle Mining meetings:
 Information meetings will be
developed prior to each stage of the
project and presented to local
communities and stakeholders
through the representatives of the
Community Action Boards
Community care office
 Community relations office will be
maintained in the town centre of
Santa Rosa de Osos to receive and
answer requests, concerns and
complaints
 This office will also provide
information for employment,
contracting for goods and services
and receive resumes and other
proposals from the community
Page 20.57

Development and project management
workshops:
 During the implementation stage
"construction and assembly" of the
project, six workshops will be
conducted with representatives of
the Community Action Boards
 Citizen participation workshops
 Community organization
 Analysis and identification of social
and environmental issues
Transparency:
 A transparency commitment by THE
COMPANY will ensure information is
To promote closer relations and economic provided to the municipality and the
Support for
activities between the communities, Municipal local community.
Institutional
Administration of Santa Rosa de Osos,  An important part of this action is
Management and
Antioquia and NGOs, with the support of Red linking the Santa Rosa Gold Project
Economic Activities
Eagle Mining to the Transparency Initiative.
Agricultural and livestock fostering:
 With the support of UMATA and
programs sponsored by the
Canadian Embassy to Colombia,
develop the technical capacity for
sustainable production as an
economic alternative in the region
(e.g. gardening, raising small
animals, etc.) in the ADI community
during operations
Traditional economic activities:
 Consider the promotion of a gold
jewellery training project during the
operational phase
Page 20.58

Requirements for employment
relationships:
 There will largely be performed by
an unskilled work force;
 Required personnel;
 Legal requirements: age, health
status, Documents, type and
contract period, payment terms
 Disciplinary regulations
 Disclosure and implementation of a
code of conduct and ethics for
employees, contractors,
subcontractors and suppliers
The hiring of goods and services will be
determined by the following general
Employment and Give priority to local communities in the guidelines:
Contracting process of hiring labour, and the supply of  Demand for purchase of goods and
Program goods and services, wherever possible services, will be given priority to
Santa Rosa de Osos municipality
 The goods and services that do not
exist or do not meet the
requirements of the project, shall be
obtained in regions adjacent to the
municipality
Virtual education program:
 This is planned to be a program that
seeks to strengthen the level of the
middle and basic school education
of the ADI population, by providing
internet based training. This program
has the strong support of the
Catholic Diocese of Santa Rosa de
Osos
Page 20.59

Workshop scope:
 Empowering the community with the
plans in compliance with the EMP
and environmental protection
activities
“Adopt a tree” project:
 The project aims to engage students
in the planting and on-going tree
care. This allows them to appreciate
their natural resources, and the
Empowering the communities by informing
benefits it brings to their school by
them about the actions and measures of the
providing a living barrier
EMP that Red Eagle Mining has implemented
Education, Training for the project execution. It is intended that the Assisted Virtual Education Program:
and Awareness ADI population adopt these references and  This program is aimed at improving
make them part of their everyday life the standard of education in the
Strengthen the basic, middle and high school communities that are the subject of
education level, of the ADI population. ADI, since most of the population
has not finished basic school
education
Participation program guidelines:
 The objective is to educate young
people in the ADI about the
participation process in regional
activities and provides the tools so
that the youth engage themselves in
active participation, control and
decision making processes
Page 20.60

Road safety program:
 Road safety program will be
implemented that includes a safety
policy, workshops and awareness
campaigns for employees,
contractors and communities near
the roads used by project transport
 Signing sensitive and strategic
places within the community and
project areas will be important
Health awareness:
 Annual health campaigns will be
Identify and compensate any potential impacts conducted in the project ADI to
Impact and Social caused by Red Eagle Mining or Contractors in monitor the epidemiological and
Risk Management the areas of influence of the project health status of local communities
Program Minimize social risks that the project can  The campaigns will take place
generate at different stages of activities during one day in each village and
will include the involvement of
entities of the health sector who
provide medical services
National army and police security
agreements:
 Agreements are in place and will
continue during both the
construction phase ongoing
operations of the project
 The security agreement with the
National Army is part of the
Voluntary Principles on Security and
Human Rights
20.12 Emergency Plans
An emergency plan identifies hazards and describes their prevention measures that may apply to the
Project area of influence. The plan includes procedures to address any emergencies that may occur
during the life of the Project, with the aim of ensuring the protection of human and natural resources,
assets and infrastructure that could be affected.
The main possible risks identified for the project include:
 Collapse of the main decline access to the mine;
 Underground flooding;
 Roof failure of underground workings;
 Underground fire;
Page 20.61
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 TECHNICAL
Process REPORT
plant fires, leaks or spills of fuels or chemical substances;
 Soil and water contamination by spillage of toxic substances; and
 Accidents due to improper or inexperienced handling of machinery and mining

equipment.
If any of the risks above occur during the execution of the project, The Company will implement the
following action plan:
Page 20.62
AMENDED
EmergencyNIplans
43-101 TECHNICAL
are REPORT
currently posted in all areas of the existing project site. These will be updated
after the commencement of Project construction activities.
Safety programs will incorporate drills to simulate emergency procedures as the construction and
operations evolve.
Regular safety training programmes are an on-going commitment of the Company.
Safety and health of all employees and contractors during project construction and on-going
operations, as well as all members of the local communities and stakeholders shall be of prime
importance. To ensure this is achieved, Red Eagle Mining will provide the necessary human and
financial resources to establish an effective HSES department.
A training centre will be established to assist in the integration of local personnel into the construction
and future operations work force; Red Eagle Mining is committed to maximize local employment
wherever possible.
20.13 Closure Plan
A closure and recovery plan (CRP) has been prepared for the project, which will be refined during the
detailed design and planning phases.
The CRP contains the actions that will be implemented to ensure that socio-environmental
management programs resulting from the cessation of project activities are determined and addressed.
These actions are regularly reviewed and re-assessed as necessary throughout the project operational
lifetime.
The main objective of the plan is to establish a strategy to effectively decommission each part of the
project and to restore those which may have been affected to a state equal to, or better than the
conditions existing before the project commenced.
The CRP is formulated at the initial design concepts of the facilities and is considered through the
engineering, construction, operations, and post-operation phases of the project.
The closure design for the project shall be a systematic implementation through the following steps:
20.13.1 Partial Closure
This will commence early in the construction period and it generally includes the works associated with
the earthworks and civil engineering.
These tasks will be designed and executed to mitigate environmental impacts, by the re-vegetation or
protection of exposed areas of the project site, as soon as practically possible.
Page 20.63
AMENDEDGradual
NI 43-101Closure
This will be an ongoing process over the operational life of the mine. This program consists of the
gradual rehabilitation of the areas that are not in the direct vicinity of mining activities during project
operation.
It aims to ensure geotechnical stability of the site, through progressive backfilling of mining areas,
geomorphological reformation of the terrain and progressive re-vegetation of the tailings and water
storage facilities with native species from the area.
20.13.3 Temporary Closure
Temporary Closure is defined as a period of inactivity of the operation of the mine as a result of force
majeure, such as emergencies, economic, political and/or labour disputes. In the event that any of
these conditions force the temporary closure of the operation, then care and maintenance measures
necessary to protect public health, public safety and the environment during the period of cessation will
be enforced. Red Eagle Mining will ensure the availability of operational staff to implement this plan.
20.13.4 Final Closure and Post-closure
Final closure commences after the mining and processing activities have ceased due to exhaustion of
the ore resources. It will include the dismantling and clearing of the infrastructure and processing
facilities, and the closing and sealing of the underground mine accesses.
A program of slope stabilization, contouring of the surface features, and replacement of stored topsoil
will be developed and undertaken. This will be followed by re-vegetation of the previously disturbed
areas, including final surface and groundwater management stabilization.
The final closure plan also includes social closure, with the aim to provide detailed information to the
public related to the reclamation activities.
The procedure will be planned to ensure compliance with environmental and social commitments in
accordance with the EMP and the approval of the Environmental Authority.
The following outlines the development of Final Closure and Post-Closure Plan. 3-D views of the
resulting closure plans are also shown below:
 Physical removal of all equipment and machinery from the project site (this is
typically a cash positive exercise, and the salvage and resale value of a majority of
the equipment will outweigh the cost of dismantling and transportation off site);
 The sealing of all mine openings;
 The breaking up and removal of all concrete foundations with a rock hammer and
excavator;
Page 20.64
AMENDED NI 43-101
 TheTECHNICAL REPORT
re-contouring of the entire occupied footprint of the mine, process plant and
waste management facility;
 The reclaiming of stored topsoil, and spreading over the recontoured old footprint
area;
 The revegetation of the entire area with native plants and grasses, along with a large
number of local trees.
It is anticipated that the Final Closure will return the area to a state equal to, or better than the
conditions that existed before the project commenced.
Decommissioning of Mining Areas
Page 20.65

Topography of the Land After Closure of the Project
Page 20.66
NI 43-101 TECHNICAL
AMENDEDInvestment
20.14 Plan REPORT
20.14.1 Introduction
According to Colombian legislation, the owners of all projects requiring an Environmental License are
committed to invest 1% of the total budget calculated, prior to operations, of the capital cost of the
installed equipment and machinery of the project. This is in order to contribute to the recovery,
conservation, preservation and monitoring of the basin where the water resources will be drawn from.
20.14.2 Investment Formula
The formula for calculating the commitment towards a local investment has been established by
Decree 1900 of 2006, which characterizes a project with regards to the project Land Management Plan
(LMP) and Municipal Development in the Regional Environmental Management Plan (REMP) and
Water Basins Management Plan (WBMP) as set out by the Environmental Authority.
This budget is based on the costs of earthworks and civil works, and the purchase of machinery and
equipment used in the construction of fixed plant. The budget cost for fixed plant installation was
estimated in the PEA and reported in the PTO to be $US48 million. The actual 1% value was hence
calculated as $US480,000.
20.14.3 Investment Proposals
This 1% allocation must be used for the improvements to the respective water basin where the project
is to extract water from.
Two investment alternatives for the Santa Rosa Gold Project have been proposed:
 The installation of domestic sewage treatment systems in the area of influence of the
project to service one of the local communities; and
 The reforestation of disturbed areas within the water basin.
The selection of the final alternative will be decided by the Environmental Authority and will be
addressed in the granted Environmental License as a commitment.
20.14.4 Additional Investments
The Company is committed to working closely, and supporting the local communities. As a result, there
are a number of areas where the Company has made commitments and established significant budget
allocations in the course of project studies. Some priority commitments include the following:
 A continued environmental monitoring plan which will include representatives of the

local communities to ensure total transparency in the Company’s pursuit to preserve
the environment and mitigate all impacts resulting from the project;
Page 20.67
AMENDED NI 43-101
 TECHNICAL
Education REPORT
and training plans for locals for both employment and furthering education;
 Numerous social programs, including community workshops, broadcast of regular

news updates, open forums to discuss issues and question;
 Infrastructure projects in the region (e.g. road maintenance, assistance in sewage

systems development, agriculture and small industry workshops).
20.15 Feasibility Study, September, 2014 Update
20.15.1 Technical Differences
There are a number of technical changes incorporated in this Feasibility Study. All of these changes
demonstrate positive impacts on the environment when compared to the PTO and EIA design and
description. It is also important to note that the Feasibility Study only incorporates Measured and
Indicated ore resource classification, not the Inferred classification as reported in the PTO and EIA. As
a result, the tonnages mined and gold produced are less (PTO: 3.6 million tonnes at 4.76g/t gold,
producing 516,000 ounces of recovered gold over 10 years of mine life; Feasibility Study: 2.7 million
tonnes at 4.57g/t gold, producing 388,000 ounces of gold over 8 years of mine life).
Mining
The PTO and EIA described two mining methods – long hole stoping, and mechanized cut-and-fill.
The Feasibility Study describes a variation, which has been named “Mechanized Shrinkage with
Delayed Fill” (MSDF). This method has many advantages over the EIA methods, and allows the
flexibility to revert to cut-and-fill stoping if rock conditions deteriorate.
The advantages are:
 Because ore is being slashed from the stope back and dropped on ore, dilution and
ore loss during mucking are greatly reduced;
 Because MSDF slashing techniques are used for the bulk of the stope, the powder
 If development of MSDF stopes is maintained ahead of ore requirements,

underground stockpiles of ore will be available that can be delivered as required to
the mill;
 Most of the fill only requires enough strength for equipment to be operated on top of it
to deliver more fill, which reduces cement requirements and costs; and
Page 20.68
AMENDED NI 43-101
method can easily be converted to cut-and-fill techniques where ground
conditions become weak.
Processing
Comminution
Comminution includes crushing and grinding of the ore.
 The PTO and EIA described the use of a primary and a secondary crusher, crushing
in two stages to around minus 75 mm size.
 The Feasibility Study describes just one primary crusher which will crush the ore to
around minus 120 mm in size. This has the advantage of crushing to a larger size,
hence reduced equipment and power requirements, with half as much impact.
 The PTO and EIA also describe a ball mill to grind down to minus 75 micron in
particle size.
 The Feasibility Study describes a semi-autogenous mill (SAG), which uses grinding
balls and the ore as grinding media. The grind size has been determined to be much
higher at 125 micron. This has significant advantages in the dry filtration process, as
the coarser the grind the better and more efficient the filtration process.
Pre-leach Flotation
 The PEA assumed that the finer ground ore would be fed directly into the carbon-in-
leach (CIL) circuit.
 The Feasibility Study introduces a flotation process after the SAG mill grind to extract
a concentrate containing over 95% of the ore in approximately 10% of feed. This
concentrate is then reground in a vertical mill to reduce the particle size to around 15
to 20 microns.
Leaching
 The PEA had direct CIL leaching containing one pre-leach and five leach tanks.
 The Feasibility Study has one pre-leach tank and six leach tanks with the flotation
tailings and the reground concentrate being mixed and thickened prior to proceeding
to the CIL circuit.
Elution
 The PEA assumed the Zadra elution process.
Page 20.69
AMENDED NI 43-101
 TheTECHNICAL
Feasibility REPORT
Study has incorporated the AARL process. The advantage of the
AARL process is the reduced size of the equipment and the ability to run multiple
gold solution strips during a day.
Site Layout
Significant changes have been made to the site layout – all of which significantly minimise the short
and long term impact on the environment.
 The PEA design had two separate areas for the process plant and the mine decline
access portal and associated facilities. The Feasibility Study design brings the two
together which allows greater efficiency in ore movement, and reduces the overall
footprint from approximately 60 ha to less than 30 ha. This also has the added
advantages in minimizing impact by reducing noise levels, dust, less visual impacts,
much reduced earthworks and impact on the existing topography.
 The PEA design incorporated an “in line” arrangement for the leach tanks, which
was quite inefficient – particularly for the extent of the footprint, and also for operating
and maintenance activities. The Feasibility Study design incorporates a “cluster”
configuration, which reduces the footprint, and is far more efficient.
 The PEA design had an “in-line” configuration of crusher feed, crushed ore stockpile
and mill feed, which called for a large footprint.
 The Feasibility Study layout is much more compact with the stockpile at 90 degrees.
 The tailings will be detoxified and filtered to approximately 16% moisture. 60% of the
filer-cake tailings are planned to be trucked underground and used as stope backfill.
The remaining 40% will be dry stacked on surface in the designed waste
management facility, totalling 1 million tonnes to be deposited on surface over the life
of the mining operations.
 Additionally, the mining operations will produce 1 million tonnes of development

waste rock (granodiorite). 40% of this will remain underground as stope backfill; the
remaining 60% (600,000 tonnes) will be blended with the dry stacked process
tailings. Approximately 10% of this product is planned to be crushed and used as
road maintenance sheeting of roads in the local region.
 The granodiorite also has a significant advantage in that it is acid consuming.

Testwork has successfully proven that the process tailings are not acid generating,
but the addition of the granodiorite is an added factor of safety.
Page 20.70
AMENDED NI 43-101
process tailings design in the Feasibility Study is also over a much reduced
footprint, by elevating the DWMF above the level of the plant and decline sites. This
reduces run-off from the surface, and enables improved overall management of the
facility.
For comparison the figures below show changes from the PEA to Feasibility Study flow sheet and site
layout.
PEA FLOWSHEET
Page 20.71
AMENDED NI 43-101 TECHNICAL REPORTFS FLOWSHEET
PEA SITE LAYOUT
Page 20.72
AMENDED NI 43-101 TECHNICAL REPORTFS SITE LAYOUT
Page 20.73

21.0 REPORT
CAPITAL AND OPERATING COSTS
This section outlines the capital and operating costs for the Santa Rosa Gold Project. The capital and
operating cost estimates related to the mine were prepared by MDA. The estimates for the process
plant and the plant site infrastructure were developed by Lycopodium. The costs related to the DWMF
were estimated by Golder. Owner’s costs were provided by Red Eagle Mining. All costs for the Santa
Rosa Gold Project have been expressed in Q3 2014 US Dollars.
contingencies for all the facilities required to bring the Santa Rosa Gold Project into production, as
defined by this feasibility study. All equipment and material are assumed to be new. The labour rate
build up is based on the statutory laws governing benefits to workers in effect in Colombia at the time
of the estimate. Colombian import tariffs have been applied. The estimate does not include any
allowances for escalation, exchange rate fluctuations or project risks. The capital cost estimate has a
predicted accuracy of +/- 15%.
The total estimated cost of the overall project (mine plus process plant) is $ 69.90 million. This amount
excludes market forces and currency hedging. This total has been compiled as shown in Table 21.1.
Table 21.1 Santa Rosa Gold Project Overall Capital Cost Estimate ($M)
Installation Cost
+Freight & Taxes
Mining 9.64 0.04 9.68
Owner’s Costs 8.50 0.00 8.50
Subtotal 62.90
Contingencies 7.00
Grand Total 69.90
21.1 Mine Capital Costs
21.1.1 Mine Capital Cost
The largest portion of the capital cost estimate is attributed to development costs, which have been
based on contractor quotations. Ventilation equipment quotations have been received from vendors.
Other minor equipment capital costs have been assumed based on InfoMine estimation guides. The
capital costs are assumed to be current as of the third quarter 2014 and within an accuracy of ±15%.
Page 21.1
AMENDED NI 43-101
Mining capital TECHNICAL
has been minimizedREPORT
by employing a mining contractor for all mining activity. The mining
contractor will be required to provide the mining equipment, and the cost of the equipment will be
amortized into the mining cost. Mining capital includes development capital, pre-production mining
costs, and other mine capital that is comprised of portal collar work, contractor mobilization, and mine
surface facilities.
Mine development capital costs are shown in Table 21.2.
Page 21.2
AMENDED NI 43-101 TECHNICAL REPORT Table 21.2 Mine Development Capital Cost
Item Units Yr -1 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Total

Sublevel Ramps KUSD 797 2,981 4,211 948 1,309 3,218 610 1,350 2,862 18,286
Haulage Drifts KUSD 0 497 254 0 1,159 284 252 180 359 2,986
Main Ramps KUSD 2,539 1,054 601 601 601 603 1,202 731 0 7,933
Ventilation Drifts KUSD 13 87 175 0 159 39 13 71 75 631
Ventilation Raise KUSD 0 363 424 0 313 0 133 122 376 1,732
Total Development Cost KUSD 3,349 4,982 5,666 1,549 3,541 4,144 2,210 2,454 3,673 31,568
Cost of Utilities K USD 149 278 318 155 211 273 125 138 235 1,881
Total Development Capital K USD 3,497 5,261 5,984 1,704 3,752 4,417 2,335 2,592 3,908 33,449
Page 21.3
AMENDED NI 43-101
The development TECHNICAL
capital REPORT
has been estimated based on the meters of development, and the contractor
proposal for cost of development per meter, for the different development profiles. Contractor
proposed rates were given in Colombian Pesos per meter for development in saprolite, granodiorite,
and transition zones in between. A conversion rate of $1,900 Columbian Pesos per US dollar was
used. Ventilation raise development was quoted to be completed using sub-contracted Alimak raise
equipment rates. The quoted rates are shown in Table 21.3.
Table 21.3 Contractor Quotation for Development ($/m)
Contractor Quote
Item
($/m)
Saprolite 3,061
Transition Zone 1,995
Granodiorite 1,578
Ventilation Raises 2,019
The contractor quotations for development costs do not include ground support or utilities, however the
unit costs for installed utilities, bolts, mesh, and shotcrete were provided in the quotation. These were
used to estimate the overall cost for development and added to the capital cost estimate Table 21.2 by
type of development.
In addition to the development mining and support cost, the contractor will supply and install utilities.
The supplies for the utilities will be reimbursed by Red Eagle Mining. The estimated utility cost for
development is also shown in Table 21.2 and includes supplies and hangers for electrical cable,
ventilation tubing, communication lines, water lines, and compressed air lines. Where some of the
utilities can be salvaged from one area to another, they are assumed to be reused. The percentage of
salvaged ventilation tubing reused is between 25% and 30% depending on size. The percentage of
pipe reused is 70%, the percentage of 480 V cable reused is 80%, and the percentage of
communication lines reused is 70%.
Attack ramps would be mined at a 2.5 m wide by 2.5 m high profile, and the unit cost for attack ramps
is $1,426 per metre. Since the attack ramps have a short life related to the stoping areas, this
development is expensed and accounted in the operating cost, with the exception of the pre-production
period.
Mine departmental capital (Owner’s cost) is shown in Table 21.4.
This was estimated as the owner capital cost required to establish mine general, engineering, and
geology services, along with the purchase of specific underground equipment to be purchased by the
owner. Mine general services includes materials for capitalized safety supplies, plotters, printers,
computers, software, and light vehicles. The plotters, printers, computers, and software would be used
by the mine department, including engineering and geology, and the bulk of the software cost is for
mine planning and geology software for design and ore control.
Page 21.4
AMENDED
EngineeringNIcost
43-101 TECHNICAL
includes REPORT
surveying systems. In addition, $600,000 was added for production training,
which is the cost of having three expatriate engineers and geologists to establish proper planning,
design, and reconciliation procedures for the mine.
Geology capital is primarily for underground drilling equipment to be used for delineation drilling, to
better define stopes prior to production. Light vehicle capital is also included under each department.
Most of the equipment and supplies that supports the mine will be purchased and installed by the
contractor with reimbursement by Red Eagle Mining. The exception is some equipment that Red
Eagle Mining will purchase from other vendors. This includes primary and auxiliary ventilation fans,
dewatering pumps, compressors, substation, and electrical switching gear. These estimated costs are
also shown in Table 21.4.
The total capital is shown in Table 21.5. This includes items from Table 21.2 and Table 21.4 along
with pre-production capital and pre-production expensed costs. Pre-production capital of $9.44 million
includes cost of ore mined and stockpiled prior to the start of production. Pre-production expensed
includes development cost for mining attack ramps to stoping areas during the pre-production period
along with delineation drilling.
Page 21.5
Table 21.4
AMENDED NI 43-101 TECHNICAL REPORT Owner’s Cost - Mine Departmental Capital

Mine General
Safety Supplies and Inventory K USD 10 10 0 0 0 0 0 0 0 20
Plotters, Printers, and Computers K USD 25 0 0 0 0 0 0 0 0 25
Software K USD 130 50 0 0 0 0 0 0 0 180
Light Vehicles K USD 60 0 15 0 45 0 0 0 0 120
Engineering Capital
Total Station Instrument K USD 80 0 0 0 0 0 0 0 0 80
Production Training K USD 0 600 0 0 0 0 0 0 0 600
Geology Capital
Diamond Core Drill K USD 90 90 0 0 0 0 0 0 0 180
Mine Equipment
Primary Ventilation Fans K USD 918 0 0 0 0 0 0 0 0 918
Ventilation Shaft Collars K USD 166 82 0 0 0 0 0 0 0 249
Auxiliary Ventilation Fans K USD 20 20 40 0 40 40 20 0 0 180
Dewatering Pumps K USD 68 96 28 22 0 0 22 22 0 259
Compressors K USD 35 35 0 0 35 35 0 0 0 139
Substation K USD 0 120 0 0 120 0 0 0 0 240
Electrical Switching Gear K USD 20 25 10 5 15 10 10 5 0 100
Radios K USD 27 11 7 6 6 6 6 7 6 82
Mine Refuge Chambers K USD 0 25 25 0 0 25 0 0 0 74
Total Departmental Capital K USD 1,769 1,209 155 33 351 161 58 34 6 3,776
Page 21.6
AMENDED NI 43-101 TECHNICAL REPORT Table 21.5 Total Mine Capital

Mine Capital Summary
Mine Development K USD 3,497 5,261 5,984 1,704 3,752 4,417 2,335 2,592 3,908 33,449
Initial Delineation Drilling K USD 428 0 0 0 0 0 0 0 0 428
Pre-Production K USD 2,965 0 0 0 0 0 0 0 0 2,965
Contractor Capital K USD 779 0 0 0 0 0 0 0 20 799
Departmental Capital K USD 1,769 1,209 336 214 532 341 239 34 6 4,680
Total Mining Capital K USD 9,439 6,470 6,319 1,917 4,284 4,758 2,574 2,626 3,934 42,322
Total Mining Capital
Initial Capital K USD 9,439 0 0 0 0 0 0 0 0 9,439
Sustaining Capital K USD 0 6,470 6,319 1,917 4,284 4,758 2,574 2,626 3,934 32,882
Total Capital K USD 9,439 6,470 6,319 1,917 4,284 4,758 2,574 2,626 3,934 42,322
Page 21.7

21.2 Mine Operating Cost Estimate
21.2.1 Mine Operating Cost
Mine operating costs have been estimated based on first principle operating parameters and costing
parameters using hourly equipment and personnel rates provided by contractor quotations. Mine
operating costs are based on the MSDF method and are shown in Table 21.6. The cost per tonne is
calculated based on ore tonnes mined per year and are shown in Table 21.7. Note that operating
costs estimated during pre-production have been included into capital costs, but have been estimated
in the same manner as described in this section. Pre-production costs and production tonnage have
been removed from Table 21.6 and Table 21.7.
Electrical and fuel consumption rates were determined using InfoMine estimation guides. Owner
operated equipment cost estimates included ventilation and dewatering costs, which were estimated
using hourly rates from InfoMine. Electrical and fuel costs have been assumed to be $0.11/kWH and
$1.10/L, respectively. This is based on Red Eagle Mining’s input and research.
The overall operating cost is estimated to be $37.36 per tonne.
The accuracy of the mine operating cost estimate is expected to be within ± 15%.
Page 21.8
AMENDED NI 43-101 TECHNICAL REPORT Table 21.6 Mine Operating Cost
Mine Production Costs Units Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Total

Drilling K USD 960 962 962 962 965 962 962 609 7,346
Blasting K USD 1,615 1,619 1,619 1,619 1,623 1,619 1,619 1,038 12,369
LHD Loading K USD 170 170 170 170 171 170 170 141 1,332
Support K USD 1,196 1,199 1,199 1,199 1,202 1,199 1,199 759 9,153
Backfill K USD 796 914 930 909 898 924 889 685 6,945
Expensed Development K USD 1,636 418 4,703 2,851 1,915 1,257 1,064 2,065 15,908
Mine Support K USD 358 357 357 357 358 357 357 298 2,801
Delineation Sampling K USD 1,483 992 726 727 726 726 726 309 6,414
Ventilation K USD 579 527 533 526 528 525 518 402 4,138
Dewatering K USD 80 86 85 104 104 104 102 59 725
Mine General Services K USD 982 982 982 982 982 982 982 818 7,688
Subtotal Mine Cost K USD 11,318 9,953 14,078 12,082 11,144 10,448 10,331 8,573 87,927
Contractor Fixed Cost K USD 1,931 1,931 1,931 1,931 1,931 1,931 1,931 1,609 15,128
Total Mine Cost K USD 13,249 11,884 16,010 14,013 13,075 12,379 12,263 10,182 103,055
Page 21.9
AMENDED NI 43-101 TECHNICAL REPORT Table 21.7 Mine Operating Cost per Tonne
Mine Production Costs - $/t Units Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Total

Drilling $/t 2.66 2.67 2.67 2.67 2.67 2.67 2.67 2.63 2.66
Blasting $/t 4.48 4.50 4.50 4.50 4.50 4.50 4.50 4.48 4.48
LHD Haulage to Muck Bays $/t 2.18 2.26 2.32 2.17 2.17 2.07 1.99 1.95 2.14
LHD Loading $/t 0.47 0.47 0.47 0.47 0.47 0.47 0.47 0.61 0.48
Haulage to Surface $/t 1.87 2.54 2.72 2.48 2.47 2.44 2.86 4.05 2.61
Support $/t 3.31 3.33 3.33 3.33 3.33 3.33 3.33 3.27 3.32
Backfill $/t 2.21 2.54 2.58 2.52 2.49 2.57 2.47 2.95 2.52
Expensed Development $/t 4.53 1.16 13.06 7.92 5.30 3.49 2.96 8.91 5.77
Mine Support $/t 0.99 0.99 0.99 0.99 0.99 0.99 0.99 1.28 1.02
Delineation Sampling $/t 4.11 2.76 2.02 2.02 2.01 2.02 2.02 1.33 2.33
Ventilation $/t 1.60 1.46 1.48 1.46 1.46 1.46 1.44 1.73 1.50
Dewatering $/t 0.22 0.24 0.24 0.29 0.29 0.29 0.28 0.26 0.26
Mine General Services $/t 2.72 2.73 2.73 2.73 2.72 2.73 2.73 3.53 2.79
Subtotal Mine Cost $/t 31.35 27.65 39.11 33.56 30.87 29.02 28.70 36.99 31.87
Contractor Overhead / Profit $/t 5.35 5.36 5.36 5.36 5.35 5.36 5.36 6.94 5.48
Total Mine Cost $/t 36.70 33.01 44.47 38.93 36.22 34.39 34.06 43.94 37.36
Page 21.10
AMENDED
Drilling 43-101 TECHNICAL
NI Blasting
and Costs REPORT
The drilling and blasting requirements have been estimated based on the production schedule. The
drilling and blasting cost is a function of the equipment hours, personnel, and consumables required for
production drilling. Table 21.8 shows production drilling costs and Table 21.9 shows the production
blasting cost. Drilling and blasting costs are estimated to be $2.66/tonne and $4.48/tonne of ore
mined, respectively.
Page 21.11
AMENDED NI 43-101 TECHNICAL REPORT Table 21.8 Annual Drilling Costs
Drilling Costs Units Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Total

Total Production Drill Hours Op Hours 9,732 9,753 9,753 9,753 9,779 9,753 9,753 6,173 74,447
Number of Drills # 2 2 2 2 2 2 2 2 2
Drill Availability % 85% 84% 83% 82% 81% 80% 80% 80% 82%
Schedule Hours per Period AvailOpHours 8,664 8,640 8,640 8,640 8,664 8,640 8,640 7,224 67,752
Available Drill Operating Hours AvailDrillHours 14,714 14,501 14,328 14,155 14,021 13,824 13,824 11,558 110,926
Use of Available Hours % 66% 67% 68% 69% 70% 71% 71% 53% 67%
Power Consumption MWH 506 507 507 507 508 507 507 321 3,869
Power Cost K USD 61 61 61 61 61 61 61 39 466
Fuel Consumption KL 9 9 9 9 9 9 9 6 71
Fuel Cost K USD 9 9 9 9 9 9 9 6 72
Equipment Costs K USD 651 652 652 652 654 652 652 413 4,978
Maintenance Costs K USD 113 113 113 113 114 113 113 72 866
Labour Costs K USD 126 126 126 126 127 126 126 80 965
Total Costs K USD 960 962 962 962 965 962 962 609 7,346
Total Costs $/t 2.67 2.67 2.67 2.67 2.67 2.67 2.67 2.67 2.66
Page 21.12
AMENDED NI 43-101 TECHNICAL REPORT Table 21.9 Annual Blasting Costs
Blasting Costs Units Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Total

Total Explosives Used Tonnes 257 258 258 258 259 258 258 163 1,969
Explosives Cost K USD 603 604 604 604 606 604 604 382 4,610
Accessory Cost K USD 744 746 746 746 748 746 746 472 5,695
Total Consumables K USD 1,347 1,350 1,350 1,350 1,354 1,350 1,350 854 10,305
Labour Costs K USD 203 204 204 204 204 204 204 129 1,554
Equipment Costs K USD 65 65 65 65 65 65 65 54 511
Total Costs K USD 1,615 1,619 1,619 1,619 1,623 1,619 1,619 1,038 12,369
Total Costs $/t 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.55 4.48
Page 21.13

AMENDEDCost
Loading
Loading costs includes the cost of loaders used to load 20-tonne haul trucks. The haul trucks would
haul ore to the surface and return either empty or with a backhaul of waste/tails for use in backfilling.
Due to the longer cycle times and the number of haul trucks required, the utilization of the loaders is
very low. For this reason, the operator cost has been zeroed based on the assumption that truck
operators would be cross-trained to operate the loaders and load trucks. This reduces the amount of
operators required. The loading cost is shown in Table 21.10 and estimated to be $0.48 per tonne of
ore mined.
Page 21.14
AMENDED NI 43-101 TECHNICAL REPORT Table 21.10 Annual Loading Costs
Production LHD
Loading Units Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Total
LHD Loading Hours

Used Prod Hrs 1,437 1,440 1,440 1,440 1,444 1,440 1,440 911 10,992
Operating Hours Op. Hrs 2,211 2,215 2,215 2,215 2,221 2,215 2,215 1,402 16,911
Number of LHD's # 1 1 1 1 1 1 1 1 1
LHD Availability % 85% 84% 83% 82% 81% 80% 80% 80% 82%
Schedule Hours per Available

Period Op. Hrs 8,664 8,640 8,640 8,640 8,664 8,640 8,640 7,224 67,752
Available LHD Available

Operating Hours LHD Hrs 7,357 7,250 7,164 7,078 7,011 6,912 6,912 5,779 55,463
Fuel Consumption (KL) KL 35 35 35 35 35 35 35 22 267
Fuel Cost K USD 25 25 25 25 25 25 25 21 197

Labour Costs K USD 20 20 20 20 20 20 20 17 159
Total Costs K USD 170 170 170 170 171 170 170 141 1,332
Total Costs $/t 0.47 0.47 0.47 0.47 0.47 0.47 0.47 0.62 0.48
Page 21.15

AMENDEDCost
Haulage
Haulage costs have been estimated based on truck requirements to haul ore from underground to the
stockpile outside of the portal using 20-tonne haul trucks. The trucks will also back haul waste/tailings
material into the mine for use in backfilling. The cost of the return trip is included in the haulage cost.
The incremental cost of the truck returning from the backfill dumping location to the production loading
location has been included in the backfill costs.
The haulage cost varies based on the cycle time required. Thus, the cost is time dependent, based on
locations being mined. Life of mine average haulage costs have been estimated to be $4.75 per tonne
mined and are shown in Table 21.11.
Page 21.16
AMENDED NI 43-101 TECHNICAL REPORT Table 21.11 Annual Haulage Costs
Item Units Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Total

Haulage by Truck
Average Cycle Time Minutes 19.00 25.75 27.51 25.13 24.99 24.70 28.94 41.72 27.60
Truck Hours Used Prod Hours 6,142 8,342 8,914 8,140 8,118 8,001 9,375 8,556 65,587
Operating Hours Op Hrs 8,774 11,917 12,734 11,628 11,597 11,429 13,393 12,223 93,696
Number of Trucks Max # 2 2 2 2 2 2 3 3 3
Truck Availability Avg % 85% 84% 83% 82% 81% 80% 80% 80% 82%
Days per Period Days 366 365 365 365 366 365 365 304 2,861
Available Truck Operating Hours AvailTrkHours 10,424 14,515 14,342 14,170 14,036 13,824 17,299 13,824 112,434
Haulage by LHD
Average Cycle Time Minutes 3.91 4.03 4.14 3.89 3.86 3.69 3.55 3.22 3.83
LHD Loading Hours Used Prod Hrs 8,212 8,474 8,705 8,158 8,152 7,767 7,457 4,275 61,199
Operating Hours Op Hrs 10,265 10,592 10,882 10,197 10,190 9,708 9,321 5,344 76,499
Number of LHD's # 2 2 2 2 2 2 2 2 2
LHD Availability % 85% 84% 83% 82% 81% 80% 80% 80% 82%
Available LHD Operating Hours AvailLhdHours 14,714 14,501 14,328 14,155 14,021 13,824 13,824 11,558 110,926
Total Haulage Consumables and Costs
Fuel Consumption (KL) KL 454 564 596 548 547 534 593 491 4,326
Fuel Cost K USD 357 447 472 434 433 423 473 402 3,441
Maintenance Costs K USD 260 305 319 295 295 286 306 242 2,308
Labour Costs K USD 186 222 233 215 215 208 226 182 1,686
Total Costs K USD 1,461 1,728 1,813 1,675 1,672 1,623 1,744 1,391 13,107
Total Haulage Costs $/t 4.07 4.80 5.04 4.65 4.63 4.51 4.84 6.10 4.75
Breakdown by Truck and LHD
Haulage to Surface $/t 1.87 2.54 2.72 2.48 2.47 2.44 2.86 4.12 2.61
LHD Haulage to Muck Bays $/t 2.19 2.26 2.32 2.17 2.17 2.07 1.99 1.99 2.14
Page 21.17
AMENDED
Ground NI 43-101
Support TECHNICAL REPORT
Cost
Ground support for production is estimated based on support requirements and the installation of rock
bolts and meshing. As these costs are for support related to stope production, no shotcrete costs have
been included. It is assumed that all of the support would be completed using split set bolts and mesh
only. The estimated cost for ground support is $3.32 per tonne of ore and is shown in Table 21.12.
Page 21.18
AMENDED NI 43-101 TECHNICAL REPORT Table 21.12 Annual Ground Support Costs

Bolts Required # 24,563 24,615 24,615 24,615 24,683 24,615 24,615 15,581 187,903
Mesh Required m^2 41,450 41,538 41,538 41,538 41,652 41,538 41,538 26,293 317,087
Installation - Time Required hours 9,030 9,050 9,050 9,050 9,075 9,050 9,050 5,728 69,082
Bolt costs K USD 626 627 627 627 629 627 627 397 4,786
Mesh Costs K USD 217 217 217 217 218 217 217 138 1,660
Maintenance Cost K USD 6 6 6 6 6 6 6 4 46
Labour K USD 253 253 253 253 254 253 253 160 1,934
Total Support Cost K USD 1,196 1,199 1,199 1,199 1,202 1,199 1,199 759 9,153
Total Costs $/t 3.33 3.33 3.33 3.33 3.33 3.33 3.33 3.33 3.32
Page 21.19
AMENDED
Backfill NI 43-101 TECHNICAL REPORT
Cost
The backfill costs have been estimated to include return haulage of backfill underground, using
20 tonne haul trucks, and placement of the material using smaller 2.5 tonne loaders. Part of the
backfill costs have been estimated based on equipment requirements for mixing of tailings with 1%
cement, to increase the stability of the tailings, so that equipment can be operated on top of the
backfill. This 1% cemented backfill represents approximately 5% of the total backfill. In some cases,
additional cement (approximately 5%) will be used where material will be mined underneath backfill.
This 5% cemented backfill represents approximately 7% of the total backfill. It is anticipated that the
balance of the backfill will not require additional cement based on the manner of placement and
blending with waste rock.
The estimated backfill cost is shown in Table 21.13 and totals $2.52 per tonne of ore. The backfill
costs take advantage of backhauls by 20-tonne haul trucks, so only the incremental haulage
component is allocated to the backfill.
Page 21.20
AMENDED NI 43-101 TECHNICAL REPORT Table 21.13 Annual Backfill Costs

Backfill Mixing K USD 75 85 85 85 85 90 87 69 661
Haulage Underground K USD 108 138 142 140 138 143 149 135 1,093
Placement K USD 447 505 517 498 487 494 464 330 3,741
Cement Costs K USD 165 186 186 187 187 197 190 151 1,450
Total Backfill Cost K USD 796 914 930 909 898 924 889 685 6,945
Total Backfill Cost $/t 2.22 2.54 2.58 2.52 2.49 2.57 2.47 3.00 2.52
Page 21.21
AMENDED
Mine Cost TECHNICAL REPORT
NI 43-101
Support
Mine support includes various equipment and operator costs to provide support for mine operations.
Equipment includes: service truck, lube trucks, grader, scissors truck, and a flatbed truck. The
estimated support costs are based on contractor quotations and are shown in Table 21.14. These
support costs are $1.02 per tonne of ore.
Page 21.22
AMENDED NI 43-101 TECHNICAL REPORT Table 21.14 Annual Mine Support Costs

Fuel Consumption (KL) KL 146 145 145 145 146 145 145 121 1,138
Fuel Cost K USD 160 160 160 160 160 160 160 133 1,252
Labour K USD 3 3 3 3 3 3 3 3 25
Total Equipment Cost K USD 340 339 339 339 340 339 339 283 2,660
Supplies K USD 18 18 18 18 18 18 18 15 141
Total Support Costs K USD 358 357 357 357 358 357 357 298 2,801
Total Support Costs $/t 1.00 0.99 0.99 0.99 0.99 0.99 0.99 1.31 1.02
Page 21.23
AMENDED
Stope TECHNICAL REPORT
NI 43-101Cost
Delineation
Stope delineation will be done prior to mining stopes. These costs are based on owner-operated and
managed diamond drilling and channel samples as shown in Table 21.15.
Drill pattern density commences at 10m x 10m in Year 1, 12.5 m x 12.5 m in Year 2, and 15 m x 15 m
for the remaining life-of-mine. The costs include drilling, labour, maintenance, and assay costs which
are estimated to average $2.33 per tonne of ore over the life-of-mine.
Page 21.24
AMENDED NI 43-101 TECHNICAL REPORT Table 21.15 Annual Stope Delineation Costs
Ore Delineation Costs Units Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Total

Delineation Drill Hole Spacing* m 10x10 12.5x12.5 15x15 15x15 15x15 15x15 15x15 15x15
Delineation Drill Holes Required # 444 284 198 198 198 198 198 76 1,793
Delineation Drill Meters Required m 48,889 31,289 21,728 21,788 21,728 21,728 21,728 8,396 197,275
Delineation Drill Samples # 8,889 5,689 3,951 3,961 3,951 3,951 3,951 1,527 35,868
Number of Channel Samples # 1,337 1,341 1,341 1,341 1,344 1,341 1,341 849 10,235
Drill Operating Hours Op Hrs 17,324 11,087 7,700 7,721 7,700 7,700 7,700 2,975 69,906
Power Consumption MWH 780 499 346 347 346 346 346 134 3,146
Power Cost K USD 101 65 45 45 45 45 45 17 409
Bits and Rods K USD 233 149 104 104 104 104 104 40 940
Drilling Labour K USD 81 81 81 81 81 81 81 47 616
Total Drilling Cost K USD 1,401 926 668 669 668 668 668 274 5,940
Drill Sample Assay Costs K USD 44 28 20 20 20 20 20 8 179
Channel Sampling Labour K USD 13 13 13 13 13 13 13 8 102
Channel Sample Assay Cost K USD 7 7 7 7 7 7 7 4 51
Total Number of Samples # 10,226 7,030 5,292 5,302 5,295 5,292 5,292 2,376 46,103
Total Equipment Cost K USD 1,319 844 586 588 586 586 586 227 5,324
Total Labour Cost K USD 95 95 95 95 95 95 95 56 718
Total Supplies K USD 18 18 18 18 18 18 18 15 141
Total Assay Costs K USD 51 35 26 27 26 26 26 12 231
Total Delineation Program Costs K USD 1,483 992 726 727 726 726 726 309 6,414
Total Delineation Program Costs $/t 4.13 2.76 2.02 2.02 2.01 2.02 2.02 1.36 2.33
*Delineation spacing is the distance between holes horizontally and vertically across the veins of the deposit.
Page 21.25

AMENDED NICost
Ventilation
The primary cost of ventilation is for power consumption and system maintenance. The cost is
estimated to be $1.50 per tonne of ore as shown in Table 21.16.
Page 21.26
AMENDED NI 43-101 TECHNICAL REPORT Table 21.16 Annual Ventilation Costs

Ventilation Power Consumption MWh 1,060 1,064 1,067 1,063 1,066 1,063 1,059 870 8,312
Ventilation Power Cost K USD 207 213 217 213 214 212 208 157 1,641
Ventilation Lube Cost K USD 14 11 11 11 11 11 11 9 88
Ventilation Capital Recovery K USD 119 101 102 101 101 101 99 76 801
Ventilation Maintenance K USD 203 166 167 165 166 165 164 130 1,326
Ventilation Fan Costs K USD 543 491 497 490 492 489 482 372 3,856
Consumables K USD 18 18 18 18 18 18 18 15 141
Outside Services K USD 18 18 18 18 18 18 18 15 141
Total Ventilation Cost K USD 579 527 533 526 528 525 518 402 4,138
Total Ventilation Cost $/t 1.60 1.46 1.48 1.46 1.46 1.46 1.44 1.73 1.50
Page 21.27

AMENDED NICost
Dewatering
Dewatering costs are based on maintaining up to three primary dewatering pumps for moving water
from lower elevations to the surface. The pumps are staged through the life of mine to reflect the total
depth of the mine. As the head increases due to depth, so does the cost to pump water from the mine.
The pumping rate is designed to operate between 5L/s and 25L/s for the life of the mine. In addition to
the primary pumps, three auxiliary pumps will be used, pumping 25L/s at a 50% utilization. The total
dewatering cost is shown in Table 21.17 and is estimated to be $0.26 per tonne of ore mined.
Page 21.28
AMENDED NI 43-101 TECHNICAL REPORT Table 21.17 Annual Dewatering Costs

Power Consumption MWh 223 247 246 331 331 330 318 153 2,180
Power Cost K USD 29 32 32 43 43 43 41 20 283
Maintenance K USD 21 23 23 31 31 31 30 15 207
Total Pump Cost K USD 50 56 55 74 74 74 72 34 490
Consumable Supplies K USD 18 18 18 18 18 18 18 15 141
Outside Services K USD 12 12 12 12 12 12 12 10 94
Total Dewatering Cost K USD 80 86 85 104 104 104 102 59 725
Total Dewatering Cost $/t 0.22 0.24 0.24 0.29 0.29 0.29 0.28 0.26 0.26
Page 21.29
AMENDED
Mine NI 43-101
General TECHNICAL REPORT
Services
Mine general services accounts for owner costs for contractor supervision, mine planning and
surveying, mine geology, and supplies. The estimated cost of $2.79 per tonne of ore is shown in
Table 21.18.
Page 21.30
AMENDED NI 43-101 TECHNICAL REPORT Table 21.18 Annual Mine General Services

Mine General Services
Supervision K USD 247 247 247 247 247 247 247 205 1,931
Hourly Personnel K USD 20 20 20 20 20 20 20 17 159
Total Mine General Personnel K USD 267 267 267 267 267 267 267 222 2,090
Engineering
Supervision K USD 189 189 189 189 189 189 189 157 1,477
Salaried Personnel K USD 152 152 152 152 152 152 152 127 1,193
Total Engineering Personnel K USD 381 381 381 381 381 381 381 318 2,987
Mine Geology
Supervision K USD 65 65 65 65 65 65 65 54 511
Salaried Personnel K USD 81 81 81 81 81 81 81 68 636
Total Mine Geology K USD 207 207 207 207 207 207 207 173 1,624
Supplies & Other
Mine General Services Supplies K USD 30 30 30 30 30 30 30 25 235
Mine Light Vehicle K USD 20 20 20 20 20 20 20 17 157
Engineering Supplies K USD 18 18 18 18 18 18 18 15 141
Engineering Light Vehicle K USD 20 20 20 20 20 20 20 17 157
Geology Supplies K USD 18 18 18 18 18 18 18 15 141
Geology Light Vehicle K USD 20 20 20 20 20 20 20 17 157
Total Supplies & Other K USD 126 126 126 126 126 126 126 105 987
Total Mine General Cost K USD 982 982 982 982 982 982 982 818 7,688
Total $/t 2.72 2.73 2.73 2.73 2.72 2.73 2.73 3.53 2.79
Page 21.31

AMENDED NIOverhead
Contractor
Contractor overhead costs provide for administration and facilities that the contractor supplies in order
to manage their operations. This is a fixed monthly cost of $160,933 based on contractor quotation.
Contractor overhead adds $5.48/t to the overall mining cost.
21.3 Process Plant Capital Costs
21.3.1 Introduction
contingencies for all the facilities required for processing, support infrastructure and owner’s costs. The
execution strategy is based on an engineering, procurement, and construction management (EPCM)
implementation approach and horizontal (discipline based) packaging. This capital cost estimate has a
predicted accuracy of +/-15%.
Major plant and site infrastructure included in the capital costs consists of the following:
 Process plant;
 Electrical switch rooms;
 44 kV power line and switch yard;
 Ponds;
 Ancillary buildings; and
 DWMF.
21.3.2 Summary
The total estimated cost of the process plant is $59.25 million as shown in Table 21.19. This total
excludes the initial mining capital investment of $9.44 million (refer to Table 21.5).
Page 21.32
TableTECHNICAL
Process Plant Estimated Total Installed Costs ($M)
Installation Cost +
Freight and Taxes
Owner’s Costs 8.50 0.00 8.50
Subtotal 53.22
Contingencies 6.03
Grand Total 59.25
21.3.3 Estimate Support Documents
Table 21.20 defines the level of development of key documents used for the estimate.
Page 21.33

Table 21.20 REPORT
Key Documents Level of Development
Item Feasibility
Site-based Investigations
Geographical location Defined
Topographical survey Completed
Geotechnical survey Completed
Hydrological survey Completed
Power Survey Completed
Project Team site visit Completed
Process Design
Bench-scale testwork Completed
Pilot Plant testwork Not required
PFDs Issued for Basic Design
P&IDs Not prepared
Equipment List Issued for Basic Design
Mass Balance Issued for Basic Design
Equipment datasheets Issued for major equipment
Line List Not prepared
Valve List Not prepared
Facilities Design
Site Plan Issued for Basic Design
Overall Plant Layout Issued for Basic Design
Mechanical GAs Issued for Basic Design
Structural GAs Defined & Modelled
Piping GAs Not prepared
Electrical SLDs Defined
Capital Cost Estimate
Mechanical Equipment (major) Budget Quotes
Mechanical Equipment (balance) Budget Quotes & Lycopodium Database
Concrete Foundations Take-off, budget quotes
Structural Steel Take-off, budget quotes
Piping Factored
Concrete supply & installation rates Budget quotes
Steel supply & installation rates Budget quotes
Earthworks Take-off, budget quotes
Electrical Equipment Budget Quotes
Instrumentation Equipment Budget Quotes
Steel Frame Buildings Take-off
Portable Module Buildings Budget Quotes
Dry Waste Management Facility Take-off
Page 21.34

AMENDEDProcurement
21.3.4
For all major equipment, technically compliant budget quotes obtained from established vendors were
used after proper adjudication. These quotes were benchmarked against pricing obtained for similar
equipment on recent Lycopodium projects. Pricing for minor equipment was obtained from budget
quotes from local vendors and information from the Lycopodium equipment pricing database. For a list
of budget quotes please see Table 21.21.
Table 21.21 List of Equipment and Materials (Budget Price/Estimation)
Item Package# Description Comment

Electrical Equipment
1 5026-7001 Main Transformers Budget Price
2 5026-7002 Medium Voltage Switchgear Budget Price
3 5026-7003 6.3KW Switchgear and MCC Budget Price
4 5026-7004 Variable Speed Drives Budget Price
Mechanical Equipment
5 5026-5001 Primary Crusher Budget Price
6 5026-5001A Regrind Ball Mill Budget Price
7 5026-5002 SAG Mill Budget Price
8 5026-5003 Apron Feeder Budget Price
9 5026-5004 Jaw Crusher Budget Price
10 5026-5005 Screens Budget Price
11 5026-5006 High Rate Thickeners Budget Price
12 5026-5007 Slurry Pumps Budget Price
13 5026-5008 Agitators Budget Price
14 5026-5009 Cyclone Cluster Budget Price
15 5026-5010 Regeneration Kiln Budget Price
16 5026-5011 Pressure Filters Budget Price
17 5026-5012 Electrowinning Cells Budget Price
18 5026-5013 Strip Solution Heater Budget Price
19 5026-5014 Smelting Furnace Budget Price
20 5026-5015 Flotation Cells Budget Price
21 5026-5016 Vertical Mills Budget Price
21.3.5 Earthworks
Quantities for bulk earthworks, access road, ponds, structural pads were derived from the 3D model
incorporating the current plant site layout and the local topography. All excavation is in rippable
material. Borrow material for engineered fill will be from mine waste available during construction.
Page 21.35
AMENDED unitTECHNICAL
NI 43-101
The earthworks REPORT
rates were based on competitive bids obtained from reputable local contractors.
These rates were benchmarked against Lycopodium in-house data base on actual costs from previous
projects.
21.3.6 Concrete
The vast majority of the concrete foundations, piers, equipment rafts, slabs on grade were modelled
based on preliminary sizing and available in-house data from similar projects. All foundation sizing is
based on an assumed native soil bearing capacity of 300 kPa with maximum allowable settlement of
20 mm. The concrete quantities were derived from a take-off from the 3D model plus allowances for
the portions that were not fully modelled. The final quantities were benchmarked against actual take-
offs from previous Lycopodium projects.
The unit rates are based on budget quotes from established local contractors and include the costs of
supplying the concrete and the reinforcing steel and placing and curing the concrete. The quotes were
based on detailed material take-offs identifying the concrete quantities broken down by type: slabs,
walls, piers, rafts, suspended slabs, etc. The contractors were also sent typical concrete drawings and
details together with specifications and snapshots from the 3D model showing all the concrete
structures. The unit rates obtained from the local contractors were assessed and compared with the
Lycopodium in-house rates database for similar projects.
21.3.7 Steelwork
All the major structures in the process plant were modelled based on preliminary sizing and
benchmarked against previous Lycopodium projects. This includes major load carrying members,
secondary steel, primary bracing, stairs, and grating. Tertiary steel, horizontal bracing, girts, connection
plates were not modelled and were estimated through allowances. The final material take-off plus
allowances for the members that were not modelled was compared against actual quantities from
recent projects.
Competitive bids were obtained from local contractors experienced in this type of work. These bids
were based on detailed material take-offs identifying the steel by type: light, medium, and heavy.
Typical steel drawings, specs, and snapshots from the 3D model were also sent to the contractors so
that they can visualize the types of structures part of this scope. The rates obtained from the
contractors were evaluated against similar projects and selection made based on costs and capability.
21.3.8 Plate work and Tankage
This scope includes the supply and installation of steel tanks, bins, hoppers, and chutes. The platework
and tankage quantities were estimated using vessel sizing provided in the mechanical equipment list. A
preliminary design was undertaken for each tank in order to select appropriate plate thicknesses to
develop tank tonnages. The platework quantities for major bins and hoppers were developed from
actual take-offs from projects completed by Lycopodium in the last few years. Lining materials were
quantified separately and benchmarked against existing in-house data.
Page 21.36
AMENDED NI 43-101
The platework TECHNICAL
and tankage REPORT
unit rates are based on budget quotations received from local contractors
with proven capabilities in similar projects. Special allowances were made to take into account the
complexity of some of the bins and chutes, which historically are underestimated by contractors. The
final unit rates adopted in the estimate are a combination between the quotes received from the local
contractors and benchmarked data from previous Lycopodium projects.
21.3.9 Mechanical Equipment
The quantities and size of the mechanical equipment were taken from the detailed mechanical
equipment list developed for this feasibility study. Budget quotations for major equipment were
obtained from local and international vendors; see Table 21.21. Technical and commercial evaluation
and final selection was made by the engineering and procurement personnel working on the project.
Costs for minor items were developed through a combination of budget quotes and information from
the Lycopodium’s in-house database.
The equipment installation hours were developed from in-house data adjusted for local conditions and
labour productivity together with information supplied by the equipment vendors. Final installation costs
include provisions for the retrieval of the equipment from storage location, handling, placing,
installation, and commissioning of the equipment.
21.3.10 Plant Pipework and Valves
Piping general arrangements were not produced for this feasibility study and the pipework was not
modelled. The supply and installation costs for in-plant piping and valves were factored as a
percentage from the mechanical equipment supply and installation costs. These factors were
developed by plant area (crushing, milling, flotation, CIL, etc.) and benchmarked against previous
projects executed by Lycopodium.
21.3.11 Overland Piping
Overland piping consists of raw water supply lines, La Veta creek diversion pipelines, and return
pipeline from the sedimentation pond to the process water tank. Detailed take-offs based on the overall
site plan were developed for the overland piping scope. Budget quotations for the supply and
installation costs were received from local contractors experienced in HDPE pipeline installation. The
final costs adopted in the estimate were benchmarked against Lycopodium in-house data.
21.3.12 Electrical and Instrumentation
Budget quotes were obtained for major electrical and instrumentation equipment from international and
local vendors. Quantities for cable, cable trays, and other bulk items were developed from the general
arrangement drawings produced for this study. Detailed material take-offs and specifications were sent
to local suppliers for pricing. The supply and installation costs for the equipment and bulks were
evaluated against the Lycopodium in-house database. Allowances were made for retrieval from
storage, handling, placing, installation, and commissioning of the equipment.
Page 21.37

AMENDEDBuildings
21.3.13
A building list showing the size and type of construction of all process and ancillary buildings was
developed for this feasibility study. The major steel frame buildings (plant workshop and main
warehouse, tails filtration building, gold room, reagents storage) were modelled and estimated through
material take-offs from the model. These take-offs included steelwork, concrete foundations and slabs
on grade, cladding, roofing, etc. The supply and installation costs were developed based on the unit
rates adopted for the individual commodities (steel, concrete, cladding, etc.). The overall building costs
were benchmarked against industry standard rates and data from the Lycopodium in-house database.
Budget quotes were obtained from local suppliers for all the portable module buildings (plant
administration building, laboratory, electrical switch rooms, control rooms). These quotes were
evaluated against data available from previous Lycopodium projects.
The mine workshop and warehouse and mine truckshop will be provided by the mining contractor and
are included in the mining capital estimate.
21.3.14 Labour Rates and Crew Rates
Base labour rates for different trades and classifications have been obtained from Colombian
contractors. Payroll mark-ups or burdens for social charges and uplifts have been determined from first
principles taking into consideration site conditions, work exposure, and existing legislation.
Average crew direct labour rates were developed for each discipline considering a craft mix of
foremen, skilled tradesmen, apprentice helpers, and unskilled workers. A crew may have 10 to 30
crafts people working together to install a particular commodity (steelwork, concrete, pipework, etc.).
The individual craft wage rates for each worker were then averaged to show a combined overall crew
rate that includes base pay, employer fringe benefits and government burdens per hour of direct
labour.
Equipment rental rates and contractors’ indirects were added to the direct labour rates to derive the
“All-in” crew rates per discipline. Table 21.22 provides a summary of the average direct, indirect, and
“All-in” rates per discipline.
Page 21.38

Table 21.22 Crew Rates
Base + fringes rate Eqpt rental rate Indirects rate "All-in" rate $
Crew $ per hour $ per hour $ per hour per hour
Earthworks 10.94 16.19 8.16 35.29

Concrete 8.87 9.85 6.50 25.22
Steelwork 10.66 11.83 8.49 30.98
Platework & Tankage 11.29 12.53 7.51 31.33
Mechanical Equipment Installation 11.49 12.75 9.36 33.60
Pipework 10.32 11.46 8.05 29.83
Electrical 11.56 12.83 7.28 31.67
Architectural - Buildings 10.32 11.46 6.77 28.55
21.3.15 Contractors’ Indirects
These Contractors’ Indirects are not included in the “All-in” crew rates and cover the costs for
mobilisation and demobilisation of labour and equipment to and from the projects site. Other items
included in these costs are the temporary site facilities and utilities for each contractor, maintenance of
temporary facilities and equipment, construction supervision support, project expenses (miscellaneous
minor licenses and permits), and contractors’ fees and overhead. The contractors’ indirects were
developed for each discipline taking into account the complexity of the scope of the work, equipment
requirements, and availability of local qualified labour. Additional allowance per discipline was included
for expatriate workforce to be present on site to ensure quality, productivity, and completion schedules
are achieved.
21.3.16 Productivity
Productivity factors were applied to direct field labour hours in order to compensate for lower labour
productivity on the job site. The following factors can contribute to poor field productivity: difficult
access to the project site, weather conditions, inexperienced work force, lack of experienced
supervision personnel. All these factors are necessary to adequately transform construction drawing
details and specifications into effective construction shift objectives, efficiently deliver material and
equipment to work areas, and effectively utilize and maintain construction equipment and power tools
on the job site. The productivity factors for this estimate were based on information obtained from local
contractors and Lycopodium’s experience in executing projects of this type and size. Table 21.23
summarizes the productivity factors adopted for this capital cost estimate. The productivity values
shown in the table are compared to the standard US Gulf Coast productivity rates, and are considered
to be conservative for the Project.
Page 21.39

Table 21.23 Productivity Factor (PF)
Discipline PF
Earthworks 2.50
Concrete 2.50
Steelwork 2.00
Platework & Tankage 2.00
Mechanical 2.00
Pipework 2.00
Electrical & Instrumentation 2.50
Architectural (Buildings) 1.41
21.3.17 EPCM Services
A detailed deliverables based estimate was developed for the EPCM services required for the project
development. Engineering and drafting hours were estimated for each engineering discipline and
deliverable type. The construction management and commissioning services were estimated on a time
basis as per the execution schedule prepared for the project. The execution schedule is presented in
Section 24. Allowances for construction offices, catering, and accommodation for EPCM site based
personnel were also included in the capital costs.
21.3.18 Working Capital
Working capital was calculated based on the projected plant operating costs for the first two months of
operations.
21.3.19 Vendor Commissioning
Vendor commissioning costs were estimated for each equipment package requiring vendor
representation during construction and commissioning. The site hours needed for each package were
derived based on the complexity of equipment, information received from the respective vendors, and
in-house database from previous Lycopodium projects. An allowance for other vendor representative
expenses (catering, accommodation) were also included in the capital costs.
21.3.20 Spares
The capital cost estimate includes an allowance for commissioning and insurance spares. The
insurance spares category includes first fill warehouse spares. A minimalist approach has been
assumed with spares stocks progressively expanded during operations.
Page 21.40
AMENDEDFirst
21.3.21 Fills TECHNICAL
NI 43-101 Inventory REPORT
Quantities for first fills inventory have been calculated based on a monthly delivery schedule. This
inventory consists of critical consumable items purchased and stored on site at the onset of operations.
First fill items include sodium cyanide, hydrated lime, activated carbon, hydrochloric acid, sodium
metabisulphite, and an initial charge of grinding media. This inventory ensures adequate consumables
are available for the first stage of operation. Budget quotations were obtained for these reagents and
consumables and the costs incorporated into the estimate.
21.3.22 Exchange Rates
Quotes for equipment and construction bulks obtained in foreign currencies are expressed in the
estimate in US Dollars based on the foreign exchange rates shown in Table 21.24.
Table 21.24 Exchange Rates
United States Dollar Other Currency

1.0 USD = 1.0849 CAD (Canadian Dollars)
1.0 USD = 2.2420 BRL (Brazilian Real)
1.0 USD = 2.8455 PEN (Peruvian Nuevo Sol)
1.0 USD = 1900.0 COP (Columbian Peso)
1.0 USD = 0.5889 GBP (British Pound)
1.0 USD = 0.7369 EUR (Euro)
1.0 USD = 10.741 ZAR (South Africa RAND)
1.0 USD = 1.0641 AUD (Australian Dollar)
21.3.23 Freight
Freight costs for majority of the equipment were estimated as 12.5% of the supply costs of the
respective equipment. For mobile equipment and some construction bulks (civil) the freight costs are
included in the supply costs. Freight costs for most of the remaining bulks were estimated as 1% of the
supply costs. Freight quotes were obtained for some major equipment items (SAG mill, filter presses).
These quotes were evaluated against the available in-house data and adopted or adjusted as
applicable.
21.3.24 Owners’ Costs
The Owners’ cost budget was developed by Red Eagle Mining. These costs include:
 The Owners’ team;
 Recruiting and training costs;
Page 21.41
AMENDED NI 43-101
 TheTECHNICAL
capital costsREPORT
associated with the expansion of the existing exploration camp;
 The costs associated with the upgrade of the access road to the project site including
any land purchase costs;
 Mobile crushing / screening plant;
 Communications;
 Hardware and software costs;
 Construction all risks insurance;
 Government affairs and public relations;
 Environmental insurance; and
 Environmental permit and obligations during the construction year.
21.3.25 Contingency
The purpose of contingency is to make specific provision for uncertain cost items within the project
scope. Contingency does not cover scope changes, escalation, or exchange rate fluctuations. The
unforeseeable items covered by contingency are often referred to “unknown unknowns” within the
scope of the project. These can arise due to:
 Labour productivity variations due to contractors not providing or not having access
to labour with the required level of skills as assumed in the various direct cost
estimates;
 Labour rates or construction equipment rental rates being different from the base
assumptions adopted in the capital cost estimate; and
 Equipment and bulk material cost variations from the budgetary pricing submitted for
the capital cost estimate.
Contingency is an integral part of an estimate and has been applied to all parts of the estimate, direct
costs, indirect costs, owners’ costs, etc. The contingency has been derived jointly by Red Eagle Mining
and Lycopodium on a discipline basis, taking into consideration scope definition, material supply costs,
and installation costs. The average contingency for the process plant capital costs is 11.2%.
21.3.26 Qualifications for Capital Cost Estimate
The following items have been excluded from the capital cost estimate:
Page 21.42
AMENDED NI 43-101
 TECHNICAL
Minor additionalREPORT
geotechnical investigations;
 Minor additional metallurgical testwork;
 Finance and interest charges during construction;
 Escalation costs;
 Currency exchange fluctuations;
 Future exploration costs;
 Owners’ management reserve;
 Bulk fuel storage, as it is assumed it will be vendor supplied under a long term fuel
supply agreement;
 44 kV Transmission line, to be built by EPM and amortized (covered by operating

costs);
 Any environmental requirement not identified in this estimate;
 Changes in Colombian tax law;
 Changes in market conditions impacting equipment and bulk costs; and
 Any provision for force majeure events.
The following items have been included in the financial analysis:
 Sunk costs;
 Value added tax and duties on imported goods; and
 Reclamation costs and plant closure.
21.4 Process Plant Operating Cost Estimate
21.4.1 Introduction
The operating costs have been developed according to typical industry standards and norms
applicable to a gold processing plant producing gold doré, including all associated general and
administrative costs.
Quantities and cost data were compiled from a variety of sources including:
Page 21.43
AMENDED NI 43-101
 TECHNICAL
Metallurgical REPORT
testwork;
 Supplier quotations;
 Advice from Red Eagle Mining;
 Lycopodium data; and
 First principle estimates.
21.4.2 Plant Design Parameters
Operating costs have been developed according to the plant design criteria: nominal ROM throughput
of 360,000 tonnes per annum; average gold feed grade of 4.57 g/t over the life-of-mine; overall gold
recovery of 95.7% and average metal production of 50,620 oz of gold per annum. This forms the basis
for the annual operating costs, which vary by year in the cash-flow model (Section 22.0) according to
the LOM process plant feed schedule and recovery described in Section 22.2.1.
21.4.3 Qualifications and Exclusions
The operating cost estimates include all direct costs associated with the Project to allow production of
gold doré. The cost estimate is presented with the following exclusions:
 All mining and exploration costs, except for laboratory assays;
 All taxes (included in the financial model);
 Refining costs for transportation, marketing and insurance (included in the financial
model);
 License fees or royalties (included in the financial model); and
 Contingency allowance.
21.4.4 Operating Cost Accuracy
The expected order of accuracy for the operating cost analysis is in the range of ±15%, as required by
the estimate class, and it is deemed appropriate for the study.
21.4.5 Cost Categories
The operating cost estimate includes five major categories as defined below:
 Process plant labour;
Page 21.44
AMENDED NI 43-101
 TECHNICAL
Operating REPORT
consumables;
 Power;
 Maintenance; and
 General and Administration.
A description of each cost category is provided in the following sections.
21.4.6 Process Plant Labour
The process plant labour is divided into the following areas: management, operations, metallurgy,
laboratory and maintenance. The process plant labour includes a combination of day and shift work.
The estimated annual process plant labour cost is $2.12 million, or $5.90/t of ore.
Wages and Salaries
Wages and salaries have been provided by Red Eagle Mining. A summary of the salary for each
position is provided in Table 21.25. These salaries were provided inclusive of overheads costs. Staff
is divided into three classes: Management (M), Salary Hourly (H) and Salary Shift (S).
Page 21.45
AMENDED NI 43-101 TECHNICAL REPORT Table 21.25 Wages and Salaries
Base Annual Total Total

Number Total Overhead
Annual Labour Annual Annual
Position Empl. of Number Class Costs
Salary Costs Labour Labour
Teams Empl. %
$ $/y $/y $/t ore
Process Plant Manager 1 1 1 M 250,000 25% 312,500 312,500 0.87

Operations
Shift Supervisor 1 4 4 S 35,000 45% 50,750 203,000 0.56
Crushing Operator 1 4 4 S 18,947 45% 27,474 109,895 0.31
Milling / Flotation Operator 1 4 4 S 18,947 45% 27,474 109,895 0.31
CIL Operator 1 4 4 S 18,947 45% 27,474 109,895 0.31
Tailings Operator 1 4 4 S 18,947 45% 27,474 109,895 0.31
Goldroom Operator 2 1 2 H 18,947 45% 27,474 54,947 0.15
Loader Operator 2 4 8 S 13,241 45% 19,200 153,600 0.43
Shift General Labour 2 4 8 S 8,206 45% 11,899 95,192 0.26
Metallurgy
Senior Metallurgist 1 1 1 H 45,000 45% 65,250 65,250 0.18
Plant Metallurgist 1 1 1 H 28,000 45% 40,600 40,600 0.11
Laboratory
Lab Supervisor 1 1 1 H 21,750 45% 31,538 31,538 0.09
Assay Technician 3 1 3 H 13,241 45% 19,200 57,600 0.16
Sample Prep. Technician 2 1 2 H 8,206 45% 11,899 23,798 0.07
Maintenance
Maint. Superintendent 1 1 1 M 170,000 25% 212,500 212,500 0.59
Maint. Planner/Trainer 1 1 1 H 35,000 45% 50,750 50,750 0.14
Mechanical Supervisor 1 1 1 H 35,000 45% 50,750 50,750 0.14
Boilermakers 1.5 2 3 S 19,274 45% 27,945 83,840 0.23
Millwright 1.5 2 3 S 19,274 45% 27,947 83,842 0.23
Electricians 1.5 2 3 S 19,274 45% 27,947 83,842 0.23
Instrument Technicians 1 2 2 S 19,274 45% 27,947 55,895 0.16
Trades Assistants 1 2 2 S 8,206 45% 11,899 23,798 0.07
Process Total - - 63 - - - - 2,122,822 5.91
ROM Throughput = 360,000 t/y
Page 21.46
AMENDEDPlant
Process NI 43-101 TECHNICAL REPORT
Operations
The daily operation of the process plant will be under the control of the process plant manager, who
will also act as the process trainer. There will be a total of four operations shift crews staffed by local
labour, to cover back-to-back 12 hour shifts.
Each shift crew will include:
 One shift supervisor who will direct the day to day plant operation;
 One crusher operator, who will also oversee the surge bin reclaim area;
 One milling operator, who will also oversee the flotation circuit and the pre-leach
thickener;
 One leach operator, who will be responsible for maintaining the CIL, carbon
regeneration kiln and reagent preparation;
 One tailings operator, who will be responsible for the cyanide detoxification, filter
press and clarifier area;
 Two loader operators to operate mobile equipment; and
 Two general shift labourers, who will provide relief for daily activities.
In addition, the day shift will also include one gold room supervisor and one gold room operator.
Metallurgy
The daily metallurgical performance of the plant will be monitored by both a senior metallurgist and a
plant metallurgist, who will also have responsibility for metallurgical accounting. The metallurgist will
work closely with geologists and mining engineers to ensure that the plant operates at maximum
productivity.
Laboratory
Daily analytical plant support services are provided by the laboratory staff. Two sample preparation
technicians will cover all tasks in the sample preparation area such as reception, crushing, splitting and
pulverizing. Three assay technicians will cover all fusion, cupellation tasks, and atomic absorption
analysis. One laboratory supervisor will oversee daily operations and assure quality and efficiency.
Maintenance
The maintenance superintendent will control all aspects of plant, building and services maintenance.
Page 21.47
AMENDED TECHNICAL
NI 43-101planner
The maintenance will beREPORT
recruited early in the project to ensure early capture of all critical
equipment data and preventative maintenance requirements to Red Eagle Mining’s maintenance
planning system. The person occupying this role will also assume the duties of the maintenance
trainer.
There will be a total of two maintenance team shift crews staffed by local labour, to cover day shifts. A
total of three boilermakers, three millwrights and three electricians will be divided between two shift
rotations. In addition, each maintenance team will also include an instrumentation technician and a
trade assistant. The maintenance team will be supplemented by appropriately skilled contract labour
to undertake major tasks such as relining the crusher.
21.4.7 Consumables
The consumables category covers all the wear parts and consumable material in the process plant.
The consumables include liners for equipment such as crushers and mills, grinding media, screen
decks, and other relevant items, chemical reagents as well as fuel (diesel and natural gas).
The estimated annual operating consumables cost is $2.96 million, or $8.22/t of ore.
Consumption rates and pricing are summarized in
Table 21.26 and have been based on the following:
 Crusher liner, SAG mill liner, Vertimill liner as well as steel ball consumption rates
have been based on Lycopodium calculations. The grinding steel ball consumption
rate has been calculated by using the Abrasion Index (Ai) of 0.139. Costs have been
based on vendor quotations;
 Laboratory testwork results have been used, wherever possible for the establishment
of reagent consumption rates. In the absence of testwork data, reagent consumption
rates were assumed based on first principle calculations, Lycopodium experience
and generally accepted practice within the industry. To date, reagent consumption
rates have not been optimized;
 The consumption rates for flotation reagents, namely PAX and MIBC have been
based on testwork data and the prices are based on vendor quotations. Copper
sulphate addition in the cyanide destruction area is based on first principle
calculations and Lycopodium experience;
 Flocculent consumption is based on Lycopodium experience and pricing has been

supplied by vendors;
Page 21.48
AMENDED NI 43-101
consumption rates for hydrated lime in the CIL circuit are based on testwork.
The hydrated lime consumption rate in the cyanide destruction area is based on first
principle calculations and Lycopodium experience. Costs have been based on
vendor quotations;
 The consumption rates for sodium cyanide in the CIL circuit are based on testwork.
Costs have been based on vendor quotations;
 Sodium metabisulphite (SMBS) consumption is based on first principle calculation

and Lycopodium experience and pricing has been supplied by vendors;
 Activated carbon consumption has been based on Lycopodium experience and the
price has been supplied by a vendor;
 Elution and gold room reagent consumption rates have been based on first principles
calculation and Lycopodium experience and the price has been supplied by vendors;
 Diesel fuel and natural gas consumption rates have been based on first principles
calculations and Lycopodium experience and the prices have been supplied by
vendors;
 Antiscalant consumption rates have been based on Lycopodium experience and the
price has been based on vendor quotation;
 Water treatment plant consumables have been based Lycopodium experience; and
 Laboratory costs have been allocated on a per sample basis. These costs are
included in the General and Administration cost category.
Page 21.49
AMENDED NI 43-101 TECHNICAL REPORT Table 21.26 Summary of Major Consumables
Price Annual Total Cost Total Cost

Item Supplier Unit
US$/Unit Consumption US$/y US$/t ore
Jaw Crusher
Upper Cheek Plate Metso 1,834 set 1.49 set/y 2,731 0.01
Lower Cheek Plate Metso 1,132 set 1.49 set/y 1,686 0.00
Fixed Jaw Metso 6,093 set 0.74 set/y 4,537 0.01
Swing Jaw Metso 4,992 set 0.74 set/y 3,717 0.01
Mill Liners
SAG Mill Liner Outotec 295,000 set 0.70 set/y 206,795 0.57
Vertimill Liner Metso 35,128 set 1.00 set/y 35,128 0.10
Steel Balls
SAG Mill Steel Balls (105 mm) Sino 1,050 tonne 217 t/y 227,931 0.63
Vertimill Steel Balls (25 mm) Sino 999 tonne 56.3 t/y 56,224 0.16
Reagents
PAX Flottec 2,900 tonne 18.0 t/y 52,200 0.15
MIBC Flottec 3,500 tonne 16.2 t/y 56,700 0.16
Flocculent Charles Tennant 3,388 tonne 6.20 t/y 21,006 0.06
Hydrated Lime DOI 305 tonne 752 t/y 229,680 0.64
Sodium Cyanide Dupont 2,750 tonne 194 t/y 534,006 1.48
Activated Carbon Chemiqa 2,900 tonne 10.8 t/y 31,320 0.09
Sodium Hydroxide Charles Tenant 625 tonne 17.8 t/y 11,111 0.03
Hydrochloric Acid Surtiminas 763 tonne 90.5 t/y 69,051 0.19
Sodium Metabisulphite Charles Tennant 479 tonne 454 t/y 217,048 0.60
Copper Sulphate Charles Tennant 3,014 tonne 37.8 t/y 113,929 0.32
Antiscalant - 2,000 tonne 1.39 t/y 2,777 0.01
Fuel
Diesel Fuel Mining Contractor 1,110 /kL 747 kL/y 829,473 2.30
Natural Gas Indisa S.A. 0.68 /m3 174,202 m3/y 119,191 0.33
Other Consumables - - - - - 131,983 0.37
Total - - - - - 2,958,244 8.22
Page 21.50

AMENDEDPower
21.4.8
The plant power consumption has been determined from the installed power in the electrical load list,
excluding the standby equipment. Electrical load factors and utilisation factors were applied to the
installed power to arrive at the annual average power draw, which was then multiplied by total hours
operated per annum and the electricity price to obtain the plant power cost.
Power will be provided from an existing substation owned by Empresas Publicas de Medellin (EPM). The
power unit cost of $ 0.11 / kWh has been provided by Indisa, in addition to a $1,050,283 fixed OHL power
cost, which is amortized over the 8-year LOM at 6% interest and a monthly fee of $13,802. This equates
to an estimated annual power cost of $2.66 million, or $7.37/t of ore.
Table 21.27 Summary of Process Plant Power Costs
Installed Peak Average Annual Total

Total
Description Power Demand Power Consumption Cost $/t
Cost $/y
kW kW kW kW ore
Process Plant Equipment 4,930 3,948 2,583 22,630,584 2,489,364 6.91
44 kV Line – OHL Fixed Power Cost - - - - 165,624 0.46
Total - - - - 2,654,988 7.37
*OHL fixed power cost amortized over 8 years
21.4.9 Maintenance
Maintenance materials’ costs have been estimated by applying factors to the ex-works mechanical
equipment cost in each area of the plant. This is done to cover the cost of all maintenance materials and
contract labour requirements, with the exception of crusher and mill wear parts, which have been included
in the consumables allowance. The factors applied are based on Lycopodium’s database and experience,
and are average costs over the life of the mine. As such, actual spares costs may be lower during the
initial years but rise later. An overall factor was calculated to be 3.5% of the mechanical supply cost ex-
works. The estimated annual maintenance cost for process plant and mobile equipment is $944,000, or
$2.62/t of ore. Maintenance costs are summarized in Table 21.28.
Mobile Equipment
The operating costs for mobile equipment have been estimated and include diesel fuel, tires and
maintenance parts. Operating allowances for mobile aggregate plant and road gravel distribution is
inclusive in the mobile equipment. The fuel costs have been included in the consumables cost category
whilst the other operating costs have been included in the overall maintenance materials cost category.
Page 21.51

Table 21.28 Summary of Maintenance Costs
Mechanical Supply Ex- Maintenance Total Maintenance Total Maintenance

Area Works Factor Cost Cost
US$ % $/y $/t ore
Plant Equipment Subtotal 11,426,360 3.5% 396,458 1.10
Mobile Equipment - - 517,570 1.44
General Maintenance
Allowance - - 30,000 0.08
Total - - 944,027 2.62
21.4.10 General and Administration Costs
This category covers the General and Administration (G&A) costs required for running the operation,
which have been supplied by Red Eagle Mining.
The estimated annual General and Administration cost is $3.49 million, or $9.68/t of ore. Costs
summarized in Table 21.29 have been based on the following:
 Red Eagle Mining provided costs for the following: administrative labour; administrative
consumables; camp catering; legal fees; insurances; land use rent; training sessions;
first aid consumables; travel and personnel transport; community support; environmental
testwork and monitoring; laboratory consumables; import duties, customs fees and land
transport fees; as well as other administrative costs.
 Salaries and overheads have been applied to the following administration areas:
administration; safety and security; transportation; community; and environmental. This
cost category includes mostly day work for the administration staff; with the exception of
security staff who perform shift work.
 Laboratory staffing is included in the process plant labour cost category. External assay
unit costs for sample analysis of solids ($19.88/unit), solutions ($14.72/unit), carbon
($29.27/unit) and bullion ($69.30/unit) have been supplied by ALS Global regarding
sample preparation, fire assays and atomic absorption analytical testing. Internal assay
unit costs for sample analysis of solids solutions are taken at 40% of the external assay
rate; this is to cover material costs for assaying consumables.
Page 21.52

Table 21.29 Summary of G&A Costs
Annual Costs
Item
$/year $/t ore
Administration
Personnel Salaries plus Overhead 925,100 2.57
Camp Catering (30 personsX$16X360) 172,800 0.48
Electrical Supply (100KwX$0.13X8000hrs) 104,000 0.29
Telecommunications/IT 50,000 0.14
Site Office Supplies, Freight 15,000 0.04
Business Travel 50,000 0.14
Recruitment 15,000 0.04
Conferences 15,000 0.04
Audit 25,000 0.07
Bank Fees 50,000 0.14
Insurances 150,000 0.42
Legal Fees 50,000 0.14
Land Use Rent 100,000 0.28
Safety & Security
Safety/PPE 75,000 0.21
Training/Education 100,000 0.28
First Aid/Clinic 25,000 0.07
Army Security 109,000 0.30
Transportation
Staff & Workers' Transport 100,000 0.28
Light Vehicles Running 75,000 0.21
Community
Community Support 150,000 0.42
Road Maintenance 50,000 0.14
Environmental
Environmental Testwork 25,000 0.07
Environmental Monitoring 25,000 0.07
Laboratory
Annual Consumables 272,298 0.76
Import Duties, Taxes and Land Transport Fees
Tariff for Imported Consumables (5%) 66,338 0.18
Customs Fee for Imported Consumables (0.2%) 2,654 0.007
Land Transport Haulage Fee from Port to Site ($2,591/trip) 152,869 0.43
Subtotal - Personnel Salaries and Overhead 1,461,600 4.06
Subtotal - Other G&A Costs 2,024,959 5.62
Total 3,486,559 9.68
Page 21.53
AMENDEDPlant
21.4.11 TECHNICAL
Operating
NI 43-101 REPORT
Cost Summary
Operating costs have been developed using the plant parameters specified in the process design criteria
using a nominal throughput of 360,000 tons per annum. The operating cost estimate includes all the cost
items relevant to processing the ore by crushing and grinding, flotation, CIL, electrowinning and smelting
to produce gold doré. The operating costs listed by major category are presented in Table 21.30.
The process plant annual operating cost was determined to be $8.68 million, which equates to $24.11 per
tonne of ore processed or $171.48 per ounce of gold produced. With inclusion of G&A costs, the total
annual operating cost is $12.17 million, which equates to $33.80 per tonne of ore processed or $240.35
per ounce of gold produced.
Table 21.30 Summary of Process Operating Cost Estimate (nominal 360,000 tpa throughput)

Cost Category
$/y $/t ore $/oz Au %
Process Plant
Process Plant Labour 2,122,822 5.90 41.94 17%
Operating Consumables 2,958,244 8.22 58.44 24%
Power 2,654,988 7.37 52.45 22%
Maintenance 944,027 2.62 18.65 8%
Subtotal - Process Plant 8,680,082 24.11 171.48 71%
General & Administration 3,486,559 9.68 68.88 29%
Total 12,166,641 33.80 240.35 100%
Figure 21.1 Overall Operating Cost Distribution (nominal 360,000 tpa throughput)
Page 21.54
The major NI
contributors REPORT
to the overall operating costs are G&A (29%), consumables (24%) and power
(22%). The operating costs are presented by area in Table 21.31.
Table 21.31 Area Breakdown of Process Operating Cost Estimate (nominal 360,000 tpa
throughput)

Area
$/year $/t ore $/oz Overall % Rel. %
Process Plant Labour 2,122,822 5.90 41.94 17% -
General and Administration
G&A Personnel Salaries and Overhead 1,461,600 4.06 28.87 12.0% 41.9%
Other G&A Costs 2,024,959 5.62 40.00 16.6% 58.1%
Sub Total - G&A 3,486,559 9.68 68.88 28.7% 100.0%
Consumables
Feed Preparation 25,958 0.07 0.51 0.2% 0.9%
Milling 434,729 1.21 8.59 3.6% 14.7%
Screening, Cyanide Detox and Tailings Disposal 415,721 1.15 8.21 3.4% 14.0%
Flotation and Regrind 200,252 0.56 3.96 1.6% 6.8%
Thickening, Leaching 712,745 1.98 14.08 5.9% 24.1%
Desorption, Carbon Regen., Refining, Electrowinning 269,005 0.75 5.31 2.2% 9.1%
Diesel Fuel (Mobile Equipment) 829,473 2.30 16.39 6.8% 28.0%
Other Consumables 70,343 0.20 1.39 0.6% 2.4%
Sub Total - Consumables 2,958,244 8.22 58.44 24.3% 100%
Power
Feed Preparation 102,045 0.28 2.02 0.8% 3.8%
Milling 1,025,367 2.85 20.26 8.4% 38.6%
Screening, Cyanide Detox and Tailings Disposal 301,414 0.84 5.95 2.4% 11.4%
Flotation and Regrind 254,487 0.71 5.03 2.1% 9.6%
Thickening, Leaching 230,300 0.64 4.55 1.9% 8.7%
Desorption, Carbon Regeneration 19,176 0.05 0.38 0.2% 0.7%
Refining, Gold Room, Electrowinning 31,317 0.09 0.62 0.3% 1.2%
Reagents 43,458 0.12 0.86 0.4% 1.6%
Water Services 76,606 0.21 1.51 0.6% 2.9%
Waste and Sewage Treatment 8,094 0.02 0.16 0.1% 0.3%
Air Services 304,112 0.84 6.01 2.5% 11.5%
Miscellaneous Facilities and Buildings 92,987 0.26 1.84 0.7% 3.5%
44 kV Line - Amortization Fee 165,624 0.46 3.27 1.4% 6.2%
Sub Total - Power 2,654,988 7.37 52.45 21.8% 100%
Maintenance 944,027 2.62 18.65 7.8% -
Total 12,166,641 33.80 240.35 100% -
ROM Throughput = 360,000 t/y; Metal Prod. = 50,620 oz Au
Page 21.55
Figure 21.2 Consumables Cost Distribution
Figure 21.3 Power Cost Distribution
Page 21.56
AMENDED NI 43-101 TECHNICAL 22.0

REPORT ECONOMIC ANALYSIS
22.1 Introduction
Lycopodium completed an economic analysis for the Santa Rosa Gold Project using the production
schedule along with capital and operating costs as described in Section 21.0. The analysis uses fully
diluted Proven and Probable reserves for the Project. The economic analysis generated a cash-flow
model, which is carried out on a pre-tax and post-tax basis. Tax implications were included based on
input from Red Eagle Mining. Net gross revenues were estimated using a $1,300 per ounce gold price
with revenue deductions for royalties, refining, transportation and insurance costs. Cash cost calculations
use the total operating cost plus royalties divided by the payable gold ounces. Total costs are calculated
using the total costs (operating and sustaining capital) plus royalties and taxes divided by the payable gold
ounces. The cash-flow model calculates the Net Present Value (NPV) based on a discounted rate of 0%
on total investment and the payback period were also calculated. A sensitivity analysis was also
conducted on parameters that are deemed to have the biggest impact on the Project financial
performance (capital cost, operating cost and gold selling price). The financial results are summarised in
Table 22.1.

NPV @ 0% K USD 171,763 131,501
NPV @ 5% K USD 136,895 103,678
NPV @ 8% K USD 119,921 90,027
IRR % 64.4% 52.6%
Page 22.1
22.2
AMENDEDPrincipal Assumptions
22.2.1 Life-of-Mine Process Plant Feed Schedule and Recovery
The economic analysis was calculated for the 8 year life-of-mine (LOM), including the ramp-up and ramp-
down years, according to the final production schedule prepared by MDA. The following provisions were
made in regards to schedule: construction and mine development start three months after the beginning of
detailed engineering; underground stope production is scheduled to commence two months prior to
commissioning; plant start-up and commissioning occurs 12 months after the commencement of
construction; and the plant ramp-up period is six weeks. Table 22.2, summarizes the annual values for
tonnes of fully diluted Proven and Probable reserves mined, ore milled, the feed grade and the metal
production of gold doré respectively.
Table 22.2 LOM Process Plant Feed Schedule and Metal Production
Year Ore Mined Ore Milled Feed Grade Metal Prod. Extraction
Tonnes Tonnes Au g/t Au oz %
-1 10,423 - - - -
1 359,230 352,118 6.21 67,675 96.2%
2 360,000 360,000 6.74 75,301 96.5%
3 360,000 360,000 4.49 49,587 95.4%
4 360,000 360,000 4.11 45,296 95.3%
5 360,986 360,986 4.67 51,786 95.6%
6 360,000 360,000 3.24 35,557 94.9%
7 360,000 360,000 2.77 30,335 94.7%
8 227,872 245,407 4.25 32,141 95.8%
LOM Total 2,758,511 2,758,511 4.57 387,678 95.7%
22.2.2 Gold Selling Price, Exchange Rate and Escalation
Economic modelling was completed using a US$ $1,300 per ounce gold price. The exchange rate of
$1,900 COP per US$ has been used for the capital and operating cost inputs to the cash-flow model. No
sensitivity analysis was conducted for fluctuations in exchange rate. Escalation is not applied in the cash-
flow model.
22.2.3 Revenue Deductions - Refining Costs and Royalties
Refining, transportation and insurance costs of $ $6.10 per ounce of gold produced are applied to the
Project cash-flow model, but are excluded in cash cost and total cost calculations ($/oz or $/t)
respectively. The refining, transportation and insurance cost estimate was provided by gold refiner budget
quotation.
Page 22.2
Table 22.3NI
AMENDED presents the “State” and
43-101 TECHNICAL “LMM” royalties applied to the cash-flow model. Producing mines in
REPORT
Colombia are subject to a federal royalty of 4% of the gross value of gold and silver production at 80% of
the current London gold price so the royalty becomes in effect 3.2% (under a modification of mining law
685 of 2001). In Table 22.3, the “LMM” royalty of 3.0% refers to the royalty held by Liberty Metals and
Mining as described in Section 4.
22.2.4 Land Reclamation Cost
A land reclamation cost of $1 million is applied to the operating costs in the cash-flow model, in which one
third of this cost is covered in the second last year of production (Year 7) and the remainder is covered in
the final year of production (Year 8). This cost assumes a reasonable salvage value from the dismantling
of the process plant offsetting the reclamation cost.
22.2.5 Working Capital
A working capital allowance of $4.01 million is applied to the Project cash-flow model. This covers
2 months of operating costs (mine, process plant and G&A). This is included to fund the project from the
time production starts until the receipt of payment for the doré sales.
22.2.6 Taxes
Income taxes were estimated based on information provided to Lycopodium by Red Eagle Mining and its
financial advisors.
Corporate taxation and revenue streaming is applied to cash-flow model for the Project. Red Eagle
Mining is adopting revenue streaming between its branches in Colombia and Barbados. The cash-flow
model uses a corporate taxation rate of 33% on taxable income in Colombia and 1.75% on taxable income
in Barbados.
Red Eagle Barbados is to fund $25 million US dollars in equity, amortised over the 8-year LOM, for the
development by purchasing the right to buy all the gold doré produced from Red Eagle Mining de
Colombia for $ $1,200 per ounce. This forms the basis for the revenue streaming system of the Project.
The taxable income in Colombia included the gross free cash-flow less deductions for:
 Exploration and acquisition cost amortization of $35 million, carried over 5 years;
 Declining balance depreciation at 25% on capital spent, fully depreciated at the end of
LOM;
Using the revenue streaming system, any revenue above $1,200 per ounce is taxable in Barbados.
Taxes are summarized in the cash-flow presented in Table 22.3.
Page 22.3

AMENDEDDepreciation
22.2.7
Declining balance depreciation at a rate of 25% was applied to capital spent to reduce taxable income in
the cash-flow model once the mine is in production. The depreciation model and rate were provided by
Red Eagle Mining.
22.2.8 Cash-flow Model
A cash-flow model was created based on the production schedule, cost inputs, and economic parameters
previously discussed. Table 22.3 shows the resulting cash-flow model. The exploration phase of the
project and other project-related expenses are considered sunk costs, which are included in the cash-flow
model.
Page 22.4
Table 22.3 Santa Rosa Cash-Flow Model

Item
REPORT Units Yr -1 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Total
Revenues
Gross Gold Revenue K USD $ - $ 87,978 $ 97,891 $ 64,463 $ 58,885 $ 67,322 $ 46,224 $ 39,435 $ 41,784 $ - $ 503,982
Refining, Transport, and Insurance K USD $ - $ 413 $ 459 $ 302 $ 276 $ 316 $ 217 $ 185 $ 196 $ - $ 2,365
Royalty - Liberty K USD $ - $ 2,627 $ 2,923 $ 1,925 $ 1,758 $ 2,010 $ 1,380 $ 1,178 $ 1,248 $ - $ 15,049
Royalty - State K USD $ - $ 2,802 $ 3,118 $ 2,053 $ 1,875 $ 2,144 $ 1,472 $ 1,256 $ 1,331 $ - $ 16,052
Net Gross Revenue K USD $ - $ 82,136 $ 91,391 $ 60,183 $ 54,975 $ 62,852 $ 43,154 $ 36,817 $ 39,009 $ - $ 470,516
Operating Costs
Mining K USD $ - $ 13,212 $ 11,852 $ 15,980 $ 13,982 $ 13,044 $ 12,348 $ 12,232 $ 10,162 $ - $ 102,811
Processing K USD $ - $ 8,606 $ 8,680 $ 8,680 $ 8,680 $ 8,689 $ 8,680 $ 8,680 $ 7,603 $ - $ 68,299
General & Administrative K USD $ - $ 3,487 $ 3,487 $ 3,487 $ 3,487 $ 3,487 $ 3,487 $ 3,487 $ 3,487 $ - $ 27,892
Reclamation K USD $ - $ - $ - $ - $ - $ - $ - $ - $ 333 $ 667 $ 1,000
Total Operating Cost K USD $ - $ 25,304 $ 24,018 $ 28,147 $ 26,149 $ 25,220 $ 24,514 $ 24,398 $ 21,585 $ 667 $ 200,002
Capital Cost
Mine Capital K USD $ 9,432 $ 6,470 $ 6,317 $ 1,916 $ 4,282 $ 4,756 $ 2,572 $ 2,626 $ 3,934 $ - $ 42,305
Process Capital K USD $ 45,776 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 45,776
Owners Team K USD $ 3,267 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 3,267
Working Capital K USD $ 4,014 $ (4,014) $ - $ - $ - $ - $ - $ - $ - $ - $ -
Contingency K USD $ 7,005 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 7,005
Import Duties K USD $ 399 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 399
Total Capital Cost - Excluding VAT K USD $ 69,892 $ 2,457 $ 6,317 $ 1,916 $ 4,282 $ 4,756 $ 2,572 $ 2,626 $ 3,934 $ - $ 98,751
VAT on Initial Capital K USD $ 4,309 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 4,309
Total Capital Cost - Including VAT K USD $ 74,201 $ 2,457 $ 6,317 $ 1,916 $ 4,282 $ 4,756 $ 2,572 $ 2,626 $ 3,934 $ - $ 103,060
Total Costs K USD $ 69,892 $ 27,761 $ 30,335 $ 30,062 $ 30,430 $ 29,976 $ 27,087 $ 27,024 $ 25,518 $ 667 $ 298,753
Net Operating Cash Flow K USD $ - $ 56,832 $ 67,373 $ 32,036 $ 28,826 $ 37,632 $ 18,640 $ 12,418 $ 17,425 $ (667) $ 270,514
Gross Free Cash Flow K USD $ (69,892) $ 54,375 $ 61,055 $ 30,120 $ 24,544 $ 32,876 $ 16,068 $ 9,793 $ 13,491 $ (667) $ 171,763
Cash Cost $/oz Au $ - $ 454 $ 399 $ 648 $ 658 $ 567 $ 770 $ 885 $ 752 $ - $ 596.12
Total Cost $/oz Au $ - $ 490 $ 483 $ 686 $ 752 $ 659 $ 842 $ 971 $ 874 $ - $ 670.56
Depreciation
Amount Carried Forward K USD $ 65,878 $ 65,878 $ 49,409 $ 37,056 $ 27,792 $ 20,844 $ 15,633 $ 11,725 $ 8,794 $ 6,595
Deduction Taken K USD $ - $ 16,470 $ 12,352 $ 9,264 $ 6,948 $ 5,211 $ 3,908 $ 2,931 $ 2,198 $ 6,595 $ 65,878
Tax Considerations (Colombia)

Less: Exploration & Acquisition Costs Amortisation K USD $ - $ - $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ - $ - $ - $ 35,000
Less: Capital Allowance (25% declining balance) K USD $ - $ - $ 16,470 $ 12,352 $ 9,264 $ 6,948 $ 5,211 $ 3,908 $ 2,931 $ 8,794 $ 65,878
Colombia Deferred Revenue From Streaming K USD $ - $ - $ 3,125 $ 3,125 $ 3,125 $ 3,125 $ 3,125 $ 3,125 $ 3,125 $ 3,125 $ 25,000
Colombian Taxable Income K USD $ - $ - $ 23,250 $ 37,298 $ 12,023 $ 9,192 $ 18,611 $ 11,729 $ 3,739 $ 3,941 $ 119,782
Colombia Corporate Tax K USD $ - $ - $ 7,672 $ 12,308 $ 3,967 $ 3,033 $ 6,142 $ 3,871 $ 1,234 $ 1,301 $ 39,528
Less: VAT Recovery K USD $ - $ - $ 4,309 $ - $ - $ - $ - $ - $ - $ - $ 4,309
Net Colombia Corporate Tax K USD $ - $ - $ 3,363 $ 12,308 $ 3,967 $ 3,033 $ 6,142 $ 3,871 $ 1,234 $ 1,301 $ 35,219
Tax Considerations (Barbados)

Barbados Taxable Income K USD $ - $ - $ 6,768 $ 7,530 $ 4,959 $ 4,530 $ 5,179 $ 3,556 $ 6,248 $ 3,214 $ 41,982
Barbados Corporate Tax K USD $ - $ - $ 118 $ 132 $ 87 $ 79 $ 91 $ 62 $ 109 $ 56 $ 735
Total Tax K USD $ - $ - $ 3,482 $ 12,440 $ 4,054 $ 3,113 $ 6,232 $ 3,933 $ 1,343 $ 1,357 $ 35,953
Net After Tax Free Cash Flow K USD $ (74,201) $ 54,375 $ 57,574 $ 17,680 $ 20,490 $ 29,763 $ 9,836 $ 5,860 $ 12,148 $ (2,024) $ 131,501
Page 22.5
AMENDEDFinancial
NI 43-101 Results
Financial highlights for only the mining phase of the project are shown in Table 22.4. These financial
results include sunk costs.
The Project is forecasted to provide a pre-tax IRR of 64.4% (before tax but post royalty) and an NPV of
$137million, using a 5% discount rate. The payback period is 1.3 years after the start of production. Pre-
tax cash costs are $83.78 per tonne of ore milled or $596.12 per ounce of gold produced (excluding
capitalized pre-production costs and refining).
With the inclusion of duties, taxes, exploration and acquisition amortised costs, depreciation and revenue
streaming to Barbados, the Project is forecasted to provide a post-tax IRR of 52.6% and an NPV of $105
million, using a 5% discount rate. The payback period is 1.3 years after the start of production. Post-tax
total costs are 107.27 per tonne of ore milled or $763.30 per ounce of gold produced.

NPV @ 0% K USD 171,763 131,501
NPV @ 5% K USD 136,895 103,678
NPV @ 8% K USD 119,921 90,027
IRR % 64.4% 52.6%
22.2.10 Economic Sensitivity
A sensitivity analysis has been completed using the cash-flow model to investigate the sensitivity of the
undiscounted cash-flow, net present value, payback period, and internal rate of return based on changes
in operating costs, capital costs, and gold prices. The cash-flow model’s sensitivity to operating costs,
capital costs, and gold price is presented in Table 22.5 to Table 22.7. The pre-tax sensitivity of gold selling
price, net present value, and internal rate of return to changes in revenue, operating cost, and capital
costs are shown in Figure 22.1 to Post-tax sensitivity charts are shown in Figure 22.5 to Figure 22.8.
As typical with most precious-metals mining projects, the Project is most sensitive to changes in the
revenue or more specifically metal prices as shown in the slope of the revenue lines.
Page 22.6
Table 22.5 Economic Sensitivity to Operating Cost

Operating Pre-Tax Post-Tax
Cost Undisc. CF NPV 5% NPV 8% Payback IRR Undisc. CF NPV 5% NPV 8% Payback IRR
Sensitivity K USD K USD K USD Years % K USD K USD K USD Years %
80% 211,764 169,323 148,807 1.16 73.6% 158,301 125,913 110,085 1.24 60.2%
90% 191,764 153,109 134,364 1.20 69.1% 144,901 114,796 100,056 1.29 56.4%
100% 171,763 136,895 119,921 1.25 64.4% 131,501 103,678 90,027 1.34 52.6%
110% 151,763 120,680 105,478 1.31 59.6% 118,101 92,560 79,998 1.40 48.6%
120% 131,763 104,466 91,035 1.37 54.6% 104,156 81,079 69,681 1.46 44.5%
Table 22.6 Economic Sensitivity to Capital Cost
Capital Pre-Tax Post-Tax

Cost Undisc. CF NPV 5% NPV 8% Payback IRR Undisc. CF NPV 5% NPV 8% Payback IRR
80% 191,514 155,557 138,074 1.02 87.2% 144,733 117,158 103,613 1.09 71.0%
90% 181,639 146,226 128,998 1.13 74.6% 138,117 110,418 96,820 1.22 60.8%
100% 171,763 136,895 119,921 1.25 64.4% 131,501 103,678 90,027 1.34 52.6%
110% 161,888 127,563 110,845 1.38 56.0% 124,885 96,938 83,234 1.47 45.7%
120% 152,013 118,232 101,768 1.50 48.9% 118,268 90,198 76,441 1.60 39.9%
Page 22.7
Table 22.7 Economic Sensitivity to Gold Selling Price

Gold Pre-Tax Post-Tax
Price Undisc. CF NPV 5% NPV 8% Payback IRR Undisc. CF NPV 5% NPV 8% Payback IRR
1,000 62,671 45,925 37,585 1.87 29.3% 45,289 30,950 23,774 1.98 21.7%
1,050 80,853 61,087 51,308 1.72 35.8% 57,471 41,407 33,389 1.82 26.8%
1,100 99,035 76,248 65,030 1.60 41.9% 69,653 51,791 42,899 1.71 31.7%
1,150 117,217 91,410 78,753 1.50 47.8% 81,835 62,187 52,429 1.61 36.4%
1,200 135,399 106,571 92,476 1.40 53.4% 94,017 72,584 61,959 1.52 41.0%
1,250 153,581 121,733 106,198 1.32 59.0% 112,759 88,131 75,993 1.43 46.9%
1,300 171,763 136,895 119,921 1.25 64.4% 131,501 103,678 90,027 1.34 52.6%
1,350 189,946 152,056 133,644 1.19 69.8% 150,243 119,225 104,061 1.27 58.1%
1,400 208,128 167,218 147,367 1.13 75.0% 168,984 134,772 118,095 1.21 63.4%
1,450 226,310 182,379 161,089 1.08 80.2% 187,276 150,014 131,886 1.15 68.7%
1,500 244,492 197,541 174,812 1.04 85.4% 205,456 165,181 145,617 1.10 73.8%
1,550 262,674 212,703 188,535 0.99 90.5% 223,636 180,348 159,348 1.05 78.9%
1,600 280,856 227,864 202,257 0.95 95.6% 241,817 195,516 173,078 1.01 83.9%
Page 22.8
AMENDED NIFigure TECHNICAL

43-10122.1 REPORT
Project Pre-Tax NPV @ 0% (Undiscounted C.F.) Sensitivity
$300,000
Undiscounted Cash-Flow, K USD
$250,000
$200,000
$150,000
$100,000
$50,000
$-
70% 80% 90% 100% 110% 120% 130%
Percent of Base Value
Capital Cost Operating Cost Gold Price
Figure 22.2 Project Pre-Tax NPV @ 5% Sensitivity
$250,000
$200,000
NPV @ 5%, K USD
$150,000
$100,000
$50,000
$-
70% 80% 90% 100% 110% 120% 130%
Page 22.9
AMENDED NI 43-101 TECHNICAL REPORTProject Pre-Tax NPV @ 8% Sensitivity

Figure 22.3
$250,000
$200,000
NPV @ 8%, K USD
$150,000
$100,000
$50,000
$-
70% 80% 90% 100% 110% 120% 130%
Figure 22.4 Project Pre-Tax IRR Sensitivity
95.0%
85.0%
75.0%
65.0%
55.0%
IRR, %
45.0%
35.0%
25.0%
15.0%
5.0%
-5.0%
70% 80% 90% 100% 110% 120% 130%
Page 22.10
Figure
43-10122.5 REPORT
Project Post-Tax NPV @ 0% (Undiscounted C.F.) Sensitivity
$300,000
Undiscounted Cash-Flow, K USD
$250,000
$200,000
$150,000
$100,000
$50,000
$-
70% 80% 90% 100% 110% 120% 130%
Figure 22.6 Project Post-Tax NPV @ 5% Sensitivity
$250,000
$200,000
NPV @ 5%, K USD
$150,000
$100,000
$50,000
$-
70% 80% 90% 100% 110% 120% 130%
Page 22.11

Figure 22.7REPORT
Project Post-Tax NPV @ 8% Sensitivity
$250,000
$200,000
NPV @ 8%, K USD
$150,000
$100,000
$50,000
$-
70% 80% 90% 100% 110% 120% 130%
Figure 22.8 Project Post-Tax IRR Sensitivity
90.0%
80.0%
70.0%
60.0%
50.0%
IRR, %
40.0%
30.0%
20.0%
10.0%
0.0%
70% 80% 90% 100% 110% 120% 130%
Page 22.12
23.0
AMENDED NI 43-101 TECHNICAL ADJACENT
REPORT PROPERTIES
Lycopodium has no information regarding exploration or development of properties adjacent to the Santa
Rosa Gold Project.
Page 23.1
24.0
AMENDED NI 43-101 TECHNICAL OTHER
REPORT RELEVANT DATA
24.1 Project Execution Strategy – Mining
This section describes the Project execution strategy proposed for the Santa Rosa Gold Project, for the
underground mine development and mine production.
The proposed execution strategy is based on the works being contracted to an experienced Colombian
mining contractor, managed and supervised by Red Eagle Mining.
Red Eagle Mining selected three potential contractors to pre-qualify for the mining works. Bids were
received from the three contractors, two of these were found to be technically compliant, with comparable
costs.
In June 2014 Red Eagle Mining issued tenders to the two bidders from the earlier pre-qualification
exercise. Another company expressed interest in the work, were deemed by Red Eagle Mining to have the
necessary experience and were also invited to bid. Tenders were received from the two pre-qualified
contractors in July 2014, the third bidder, after due consideration of the enquiry, declined to quote. Several
post-tender meetings were held to clarify the bids and establish the costs that have been used in the
Feasibility Study.
Technical Information Included in the Mining Contract Enquiry
 Mining Technical Work Plan (Programa de Trabajo y Obras or "PTO");
 Five year development plan (proposed contract for a five year term);
 Proposed list of mining equipment;
 Conceptual portal design;
 Decline access site facilities layout;
 Dimensions of the headings, drifts and raises;
 Mine development and production schedule;
 Services required;
 Geotechnical reports; and
 Hydrogeological reports.
The contractors also visited site on several occasions and inspected the drill core from the exploration
drilling programme.
Page 24.1
Proposed 43-101 TECHNICAL

Structure
AMENDED NI REPORT
of the Mining Contract
The mining contract tender is structured into various packages of work and pricing methods, as follows:
 Lump sum rates for mobilisation and site establishment;
 Unit rates for development based on meterage;
 Ore production on a time and materials basis;
 Rates for any additional equipment proposed by the contractor;
 ‘Cost Plus’ work – All Inclusive Labour rates;
 ‘Cost Plus’ work – All Inclusive Material rates; and
 Standby/Delay Rates and Charges.
In addition the contractors were requested to provide information on the following:
 Statement of work experience;
 Organization and supervision;
 Manpower schedule and equipment requirements;
 Departures and alternatives from tender documents and scope of work;
 List of subcontractors (if any); and
 Contractor's HSES program.
The two bids received were fully compliant in providing all of the costs and other information as requested
in the enquiry. The two bids were comparable in terms of cost.
Responsibilities of the Owner and the Mining Contractor
The following checklist shows the responsibilities of the Owner and the Contractor.
Page 24.2
NI 43-101 TECHNICAL Supply Install Maintain

AMENDED
# Work Area REPORT
Contr. Owner Contr. Owner Contr. Owner
1 Pre Job Preparation – Contractor’s Plant
Shipping and Packaging (seatainers, etc.) █ █ █
Packing for Transportation █ █ █
Initial Freight to Port, Cranage, etc. █ █ █
Offloading & Storage at Site █ █ █
2 Basic Site Facilities

Overall Site Security █ █ █
Local Site Security (Contractor Yard) █ █ █
Contractor Warehouse, and Stock Protection █ █ █
Owner’s Warehoused Materials – Dispensing and
█ █ █
Records; Backcharges as required
3 General Site Operating

General Site Roads Maintenance █ █ █
Roads in Contractor Complex Maintenance █ █ █
Contractor Laydown Area █ █ █
Surface Fresh Water Distribution █ █ █
Mine Discharge Water Treatment █ █ █
Feed Lines to Discharge Water Ponds █ █ █
Concrete & Shotcrete Supply █ █ █
Electrical Power – To Portal █ █ █
Electrical Power – Underground Distribution █ █ █
Solid Waste Disposal (including HazMat) █ █ █
4 Compressed Air, Fuel and Lubricants

Compressed Air █ █ █
Fuel Ordering, Monitoring, Delivery █ █ █
Diesel Fuel █ █ █
Oils and Lubricants – Contractor’s Equipment █ █ █
5 Communications
Long Distance Service █ █ █
Local/Site Services █ █ █
Computer Internet Services █ █ █
6 Construction Supplies
Concrete and Cement █ █ █
Rebar, Ties, etc. █ █ █
Formwork and Accessories █ █ █
Concrete Inserts █ █ █
Anchor Bolts █ █ █
Portal Bents and Decking (for Portal) █ █ █
Page 24.3
NI 43-101 TECHNICAL Supply Install Maintain

AMENDED
# Work Area REPORT
Contr. Owner Contr. Owner Contr. Owner
7 General Safety Equipment and Supplies

Mine Lamp Chargers, Lamps █ █ █
Scaling Bars, etc. █ █ █
Self-Rescuers, Hearing Protection, etc. █ █ █
Miners; Belts/D Rings, Boots, etc. █ █ █
First Aid Consumables (other than those supplied
█ █ █
at Medical Aid Station)
On Site Medical Aid Services █ █ █
Contractor’s Mine Rescue Equipment (2 Sets) █ █ █
8 Shop Related Items

Oxygen and Acetylene, Welding Rod, etc. █ █ █
Steel Plate and Shapes █ █ █
Shop and Hand Tools █ █ █
9 Surface Equipment
Site Crane (off-load, etc.) █ █ █
Materials/Supplies Handling █ █ █
Light Vehicles █ █ █
10 Miscellaneous Construction Items

Portable Refuge Stations(s) █ █ █
11 Mine Development
Contractor’s Maintenance Shop c/w Equipment █ █ █
Dev. Jumbos, LHDs, etc. █ █ █
U/G Haul Trucks █ █ █
Scissor Lift(s), Jeep, etc. █ █ █
Alimak Unit(s) as Required █ █ █
Raisebore or Longhole Unit if Applicable █ █ █
Temporary Fans █ █ █
Mine Dewatering Pumps █ █ █
Slimes Maintenance, etc. (U/G Sumps) █ █ █
Repair Parts for Above █ █ █
Roadbed Material for U/G █ █ █
12 Mine Development Supplies

Explosives and Accessories █ █ █
Drilling Material and Supplies █ █ █
Equipment Repairs, including Parts, Tires, etc. █ █ █
Explosives and Detonator Magazines █ █ █
Explosives and Materials Order/Delivery █ █ █
Explosives Security and Management Records █ █ █
Piping as Specified, c/w Hangers, etc. █ █ █
Face Pumps, c/w Hoses, etc. █ █ █
Ground Support Materials █ █ █
Surface Haul to Waste Dumps █ █ █
U/G Electrics, Cable, and Transformers █ █ █
Standard Rock Bolts/Dowels/Cable Bolts █ █ █
Non-Standard Rock Bolts/Dowels/Cable Bolts █ █ █
Page 24.4
13 General
AMENDED NI Contractor Support Services
Lateral Development, Raise & Construction
█ █ █
Surveying
Mine Drawing Daily Updates █ █ █
Parts and Materials Expediting █ █ █
Crew Travel █ █ █
Routine First Aid █ █ █
Medivac/Equivalent █ █ █
14 Portal Construction and Conditioning

Mine Portal construction, bolts and all fasteners,
rebar, forming materials, and all other materials as
█ █ █
required to complete the Portal construction as
shown on the drawings.
15 Insurances, as shown in T&C █ █ █
16 Training
Site Orientation Leader █ █ █
Ongoing Mine Rescue Training █ █ █
Management of the Mining Contractor
Red Eagle Mining will provide all technical support, mine designs, survey control, and drawings of planned
development and production work to the contractor. The owner’s team will comprise all Colombian staff
unless otherwise noted:
 Operations manager (expatriate mining engineer);
 Chief mining engineer;
 Mining engineers x 2;
 Senior mine geologist;
 Geology technicians/samplers x 3;
 Core drillers x 2;
 Grade control geologists x 2;
 Surveyor;
 Survey assistants x 2; and
Page 24.5

Mine clerk. REPORT
Red Eagle Mining will be responsible for the underground delineation drilling, using their own drill rigs.
In addition to the above permanent staff, the owner has identified suitable expatriate personnel (2), with
experience in the proposed mining method (MSDF), who will be engaged for the first year of mine
production, for operational training of the contractor’s personnel. The cost of this mine training team is
included in the mine capital. This requirement is to address the lack of experience of the mining contractor
in the mining method to be adopted. Mine development is well within the capabilities of the contractors, as
this is closely allied to the tunnelling and infrastructure work that is the main source of work for this type of
civil engineering contractor in Colombia.
Contracting Strategy
To meet the Project schedule, it is necessary for the construction of the decline access portal to start at
the same time as the bulk surface earthworks. These two activities will be the first to occur on site and it is
anticipated that the contract for the bulk earthworks will be placed with the successful mining contractor.
This will reduce mobilisation costs, provide for ease of overall site management and enable optimum
utilisation of mobile equipment. Both of the bidding contractors have demonstrated their experience in civil
engineering and are both capable of executing the surface bulk earthworks contract.
24.2 Project Execution Strategy – Plant and Infrastructure
This section describes the Project execution strategy proposed for the Santa Rosa Gold Project. The
scope of work will include the process plant and all related project infrastructure.
The proposed execution strategy is based on an engineering, procurement, and construction management
(EPCM) implementation approach and horizontal discipline based packaging. Subject to final negotiations,
Lycopodium (the Engineer) will be engaged to provide EPCM services for the development of the process
plant and the associated infrastructure. Specialist consultants will be contracted to address specific
elements of the Project outside the core competency of the Engineer, mining, geotechnical,
environmental, dry waste management facility, etc.
A detailed project execution plan (PEP) will be developed by the Engineer at the beginning of the detailed
design stage. The plan will address all aspects of project execution and will establish a consistent project
delivery approach focused on logical sequencing of activities during all phases of the project: detailed
design, procurement, construction, and commissioning. The key sub documents of the PEP are the
engineering plan, health and safety management plan, contracts plan, procurement plan, construction
plan, and commissioning plan.
The key objectives during the execution phase of the project are listed below:
Page 24.6
 The
AMENDED NI 43-101 TECHNICAL of the best HSE record possible – to accomplish this, it is required that
attainment REPORT
all contractors and involved personnel adhere to defined HSE objectives and standards
developed by Red Eagle Mining the EPCM contractor;
 The timely and cost effective design, construction and commissioning of the process
plant and the associated infrastructure. Throughout all phases of project development,
the project team will remain conscious of the impact of decision making processes, be
they through design, procurement, transport or construction phases, etc.;
 Leave a positive community relations legacy for on-going operations; and
 Minimize environmental impact to the project site and the surrounding area.
24.3 Detailed Engineering and Design
An engineering plan will be prepared by the Engineer defining the principles and execution guidelines that
will be adopted during the design phase of the Project. The plan will identify the various engineering
deliverables required at the tender, procurement, construction, commissioning, close-out, and handover
stages.
At the beginning of the engineering phase of the project a priority will be given to finalising the process
design, freezing the plant layout, and issuing the deliverables supporting the procurement of the long lead
equipment – SAG mill, tower mill, and the filter presses.
Design reviews will be undertaken at predetermined stages of production of the technical documents and
models. The main objective of the design reviews is to verify that:
 Statutory requirements, codes, and standards are complied with;
 The technical documents meet the design requirements and are suitable for their
intended purpose;
 Conflicts, unresolved issues, potential problems are identified, responsibility for

resolution assigned and completion dates scheduled; and
 HSE requirements and lessons learned have been addressed.
Hazards and operability (HAZOP), constructability, and other reviews will be scheduled as appropriate.
Model reviews will be conducted at 30, 60, and 90% of engineering development.
Technical peer reviews for the project will be undertaken for the principal design documents and for any
significant technical risk items identified in the risk register.
The engineering discipline leads will ensure all the external documents are reviewed by all disciplines in
accordance with the procedure as set in the engineering plan.
Page 24.7
24.4
AMENDEDProcurement Management
The procurement scope will cover all formal tendering of packages to achieve competitive pricing and an
effective negotiating position to provide value for money to Red Eagle Mining. Tendering will be based on
a lump sum cost for equipment design and supply and on a “Schedule of Rates” basis for bulk materials
supply, where applicable. Equipment suppliers will be selected on the basis of previous experience, ability
to meet design requirements and the project schedule.
A detailed project bidders list will be developed using global sourcing prequalified vendors and the Red
Eagle Mining’s preferred suppliers list. Following the compilation of technical requirements, tender
packages will be prepared and issued to the approved bidders. Bidder’s questions will be addressed,
clarification notices will be prepared and issued as necessary, and bids formally received.
Bids will be evaluated on the basis of obtaining the best value in terms of price, delivery, and equipment
quality. Evaluation criteria will be developed for critical packages.
Technical evaluation will fundamentally be based on cost and technical compliance, but will also consider
experience, ongoing operational and maintenance support, consumable spares, reliability, HSE
performance, reputation, etc. Meetings, where required will be arranged with the bidders to clarify and
confirm technical and commercial matters and to finalize and obtain a satisfactory agreement for Red
Eagle Mining whose representative will be invited to participate in these meetings.
Participation by Colombian suppliers will be pursued to the maximum possible extent on the basis of
quality, schedule, overall cost effectiveness, previous experience, and availability to perform the work.
Direct negotiations with smaller local business groups on specific packages will be planned to encourage
local sourcing of equipment and material.
Transport, logistics, customs clearance, and expediting services will be managed by the Project’s
transport and logistics contractor. The majority of the purchase orders will be based on ex-works basis.
Purchase orders for the supply of materials and equipment will specify packaging requirements to cater for
sea freight and inland transport. The Engineer will supply the specification to which packaging of all
materials and equipment must comply.
The transport and logistics contractor will interface with the materials control personnel established by Red
Eagle Mining on site. They will allocate lay-down areas for installation contractors to carry out their
responsibilities for the receipt and storage of the “free issue” supplied equipment and material.
The installation contractors will be made responsible for off-loading of the material and equipment related
to their contracts and this will be accordingly written into their respective contracts.
Page 24.8
Procurement
AMENDED of longTECHNICAL
NI 43-101 REPORT
lead equipment will be given the highest priority. The tender package preparation,
manufacturing, and installation of these items form the critical path for the project schedule. All the
engineering deliverables associated with these packages will be identified early in the engineering design
phase and expedited to the maximum possible extent. A preliminary list of long list items and approximate
lead times is shown on Table 24.1.
Table 24.1 Procurement Long Lead Items
Equipment Lead Time (weeks)

SAG Mill 36
Tower Mill 38
Flotation Cells 32
Thickener 32
Pressure Filter 36
Apron Feeder 28
24.5 Contracts Management
24.5.1 Strategy
The Engineer will be responsible for the preparation and implementation of the contracts plan and
organization structure of the project. The plan will be developed and updated progressively through the
detailed design phase. The following items will be covered in the contracts plan:
 Development of well defined Contracts Work Packages (CWPs);
 Contractor’s prequalification;
 Development of individual contracts plans setting out the scope, free issue materials,
and equipment, timing and interfaces between each work package;
 Incentive programs for safety, cost, or performance milestones;
 Performance measurements and progress reporting;
 Scheduling and package durations; and
 Special considerations for project specific site conditions.
The contracts plan for project work begins with the development of well defined CWP’s based on the
overall organizational structure and allocation of risk among the contracting parties. This is followed by
tendering, award, and administration of these packages in line with Red Eagle Mining’s policy and
procedures.
Page 24.9
Horizontal NI
discipline REPORT
based packaging has been selected for the construction of the process plant and the
associated plant infrastructure based on the following advantages:
 Horizontal packaging provides greater flexibility to engage the expertise of medium

sized specialist contractors as required for the various construction packages for the
duration of the Project;
 A horizontal contractor will be a medium sized local company, specialising in a specific

discipline and usually this will result in a lower price (given medium sized companies will
have lower overheads) and a more efficient site team;
 A horizontal contract work package allows the Engineer to have direct control of the
contractor undertaking the specific scope of work;
 Contractors normally maintain strength in one or two major disciplines. In a vertical

packaged scenario, the work in those disciplines for which the principal contractor does
not possess in-house expertise must be subcontracted to other groups over which the
principal contractor may not have effective control and which may incur additional costs
and schedule delays;
 There is a greater pool of horizontal discipline based local contractors available than
vertical contractors; and
 The horizontally packaged contractor may have a shorter duration on site which may
provide time and benefits as well as HSE benefits.
Contractors for site works will be selected on the basis of their safety record, previous experience with
similar projects, cost, schedule, availability, and capability to perform the work.
Local contractors and suppliers in the Antioquia region will be encouraged to tender for any work package
and contracts will be awarded based on their ability to meet the required conditions.
Priority will be given to fixed lump sum contracts where the volume of work is assessed by the contractors
from drawings, material take-offs, and other technical information provided during the tendering process.
These contracts are usually subjects to only minor contract variations.
Other types of contracts - Schedule of Rates (SoR) or Hourly Hire - will only be used where a fixed lump
sum contract is not practical. The Project schedule and/or practicalities dictate that earthworks, concrete
works, structural steel fabrication, platework fabrication, structural, mechanical and piping (SMP) and
electrical and instrumentation (E&I) installation packages will likely need to be undertaken under schedule
of rates contracts. With SoR type contracts the contractor will assume productivity risk and will be paid for
the actual quantities supplied and/ or installed.
The discipline and type of major contracts proposed for the Project are listed in Table 24.2.
Page 24.10
AMENDED NI 43-101 TECHNICAL REPORT Table 24.2 Proposed Major Contracts
Contract Title Work Scope Commercial Terms

Site Services Contract The EPCM in conjunction with Red Eagle Mining will prepare contracts for service Lump Sum / Schedule
providers for: of Rates
Waste collection
Site NDT testing
Third part expediting and inspection services
Site Surveying
Geotechnical and soils testing
Bulk Earthworks Clear and grub Plant site and DWMF areas. Mass excavation, cut to fill, cut to Schedule of Rates
waste and backfill of process plant area, portal pad area, event and monitoring Contract
ponds and misc site earthworks.
Installation of water control ditches and site dewatering, drains and culverts.
Upgrade of main access road including drains and culverts.
Construction of the DWMF starting dyke, tailings pipeline corridor, seepage and
sediment ponds, top soil deposit dyke.
Underground services including trenching, supply and installation of service piping
and backfill to nominal construction grade. Construction of Access road from the
concession gate to the portal pad (400m)
Concrete Supply and Installation Detailed excavation, Forming, Re-bars supply and installation and embedded Schedule of Rates
items; Placing and finishing of concrete, Supply and placing backfill against Contract
concrete
Transport and Logistics Services Coordination and management of sea and road transport including securing related Schedule of Rates
permits and documents to deliver all materials and equipment from port / supplier / Contract
vendor / contractor facility to site.
Customs clearance and brokerage service for materials and equipment from
outside of Colombia.
Provision of supervision, labour and handling equipment to off-load materials and
equipment on site
Structural Steelwork Fabrication Shop detailing, supply, fabrication, surface treatment and delivery to site of all Schedule of Rates
structural steel, grating, handrails, stairs, vertical ladders and miscellaneous items. Contract
Platework Fabrication Shop detailing, supply, fabrication, surface treatment and delivery to site of all Schedule of Rates
platework – including, hoppers, chutes, launders, bins, shop fabricated tanks, Contract
underpans and miscellaneous platework items.
Supply will include all lining materials and fasteners i.e. rubber, polyethylene, liner
plates etc.
Field Erected Tanks Shop detailing, supply, fabrication, surface treatment and delivery to site, Lump Sum
installation, assembly, hydro testing and final site painting of all field erected tanks
Plant Conveyors Design, supply, fabrication, surface treatment and delivery to site of all plant Lump Sum
conveyors systems including all mechanical items, electrical items,
instrumentation, structural steelwork, walkways, handrails, grating, belting, skirts,
shedder plates, guarding, chute work and all other miscellaneous items for a
complete operating system.
Structural, Mechanical and Piping The scope will cover structural, platework and mechanical equipment installation Part Lump Sum/Part
Installation Works and piping supply, fabrication and installation. The scope will also include pre- Schedule of Rates
operational testing and pre-commissioning. Contract
Electrical and Instrumentation The scope will cover the supply of materials and installation of all electrical and Part Lump Sum/Part
Works instrumentation works for the process plant and infrastructure. Schedule of Rates
Work includes all electrical testing and loop checking. Contract
Prefabricated Modular Buildings Design, supply, transport to site, installation and commissioning of all prefabricated Mostly Lump Sum but
modular buildings including associated services and fit out. part schedule of rates
Control rooms, Electrical switch rooms, Plant administration building, and Guard
house.
Assay/Metallurgical Laboratory Design, supply, transport to site, installation and commissioning of the assay and Lump Sum
metallurgical laboratory including floor coverings, curtains and all other fit out,
ventilation systems, laboratory equipment and
Furnishings.
Pre-Engineered Buildings Design, supply, transport to site and installation of: Lump Sum
Plant workshop and main warehouse building. Includes the workshop and
warehouse fit out.
44 kV Overhead Power Line Design, supply and installation of 44kV overhead power line (8.9 km) from the EPM Lump Sum
substation to the project site switchyard including:
Supply of all materials.
Transport to site, handle and install civil works electromechanical works; and
Pre-commissioning and energise.
Site Security Hardware Design, supply, installation and commissioning of the site security system for Lump Sum
offices and gold room
Security Fencing Supply and installation of site security fencing and gates. Lump Sum
Page 24.11
AMENDEDBulk
Earthworks
NI 43-101
The scope of this contract will include all the clearing and grubbing; mass excavation and backfill in the
plant site and the DWMF area; all access and haul roads at the site including the 400 m long main access
road from the concession gate to the main portal; all ditches, dewatering drains and culverts together with
the underground trenching including pipe supply and backfill. The DWMF starter dyke, the top soil deposit
dyke, the event, monitoring, seepage, and sedimentation ponds, and the tailings pipeline corridor will also
be part of this contract.
The bulk earthworks contractor will be the first contractor to mobilize to site. Due to the nature of the
contract and the lack of final engineering deliverables during the tendering phase and award for this
package this will be a “Schedule of Rates” contract. The work will start at the plant site and will progress
east towards the DWMF, the decline portal, and top soil deposit areas.
Every effort will be made to secure the services of a reputable local contractor experienced in this type of
work. It will be beneficial from cost and schedule perspective if the mining contractor can execute the bulk
earthworks contract. This will be investigated in the next phase of the project.
At this point the scope of work related to the upgrades required at the main access road from Highway 25
to the concession gate (approximately 8.2 km) is not finalized. These upgrades will be required in order to
facilitate shipping large equipment to the Project site during the construction period. Once the scope is
finalized a decision will be made if the bulk earthworks contractor can also execute this work package.
24.5.3 Concrete Supply and Installation
Based on the estimated volume of concrete required to be poured on site (2,400 m3) and a five month
schedule a single contractor will be engaged to complete this work. The contractor will be responsible for
detailed excavation, forming, re-bars supply and installation, all embedded items, and placing and
finishing concrete. The placing of granular fill against the finished concrete surface will also be included in
this scope. The contractor will be responsible for preparing all bending schedules and holding down
bolting schedule. Taking into account that the largest pour on site will be the 120 m3 raft foundation for the
SAG mill it is assumed that a medium size mixing plant operated by the contractor will be sufficient to
supply the concrete mix. Several local contractors have been identified capable to handle the concrete
supply and installation scope. Based on the current execution schedule the project may not be in a
position to award the contract on a lump sum basis, a “Schedule of Rates” contract with an option to be
converted to a lump sum (when all the final quantities are available) will be the likely contract strategy for
this construction work package.
Right from the start the focus will be on the ring beam foundations in the CIL tanks area since the field
erected tankage contractor will start their scope in this area. The crushing area concrete works and the
SAG mill raft foundation are also on the critical path due to the large volumes of concrete involved and the
lack of float in the SMP installation in these areas.
Page 24.12
AMENDEDField
24.5.4 TECHNICAL
Erected
NI 43-101 TankageREPORT
This contract scope will cover the CIL and some other large tanks at the plant site. Smaller tanks can be
fabricated off-site. This construction package will include the shop detailing, fabrication, transport to site,
and installation of the field erected tanks. The scope of the contract will also cover hydro testing and final
site painting of all the field erected tanks. This contractor will mobilize to site as soon as the concrete
contractor can provide access to the CIL ring beams. Since the tankage plate quantities are not expected
to change significantly the plan is to let this contract on a lump sum basis.
24.5.5 Structural Steel Supply and Fabrication
This construction package will be medium scale (around 380 t of steel) and will include the shop detailing,
supply and fabrication, painting, transportation to site of all structural steel, grating, stairs, and vertical
ladders. The supply of building cladding and roofing will also be part of this scope. This will be a “Schedule
of rates” contract with an option of converting portions of it to a lump sum contract when the final
quantities are available. Several local / regional contractors were identified to have the capabilities and
appropriate experience to undertake this scope.
24.5.6 Structural, Mechanical and Piping (SMP) Installation Works
The SMP package will include the erection of structural steelwork, platework and mechanical equipment
installation, and piping supply, fabrication and installation. This is one of the most important contracts on
site and the planning and monitoring of its progress will be given the highest priority. The engineering
deliverables related to this scope will not have sufficient level of detail in order to award a lump sum
contract. The SMP package will be awarded as a part lump sum contract and part “Schedule of Rates”
contract. The activities related to this scope are on the critical path of the project. It will be imperative to
mobilize the contractor as early as possible to build sufficient float in the schedule. A detailed description
of the SMP contract package scope is given below:
 Offloading, handling and installation of all free issue structural works, including
steelwork, grating, floor plate, handrails, stair treads, purlins, girts, sheeting, security
mesh, guarding, fasteners, and miscellaneous items including levelling, aligning and
grouting;
 Offloading, handling and installation of all free issue mechanical equipment and
platework items, including levelling, aligning and grouting, including first fill lubricants
and pre-operational testing and cleaning, rotation and testing of equipment;
 Offloading, handling and installation of all free issue valves, instrumentation, fire
hydrants and extinguishers and miscellaneous in-line items;
 Preparation of isometric drawings, materials take-offs, supply of all piping, fittings,

gaskets and fasteners, shop fabrication, NDT testing, surface treatment and transport to
site of pipe spools and stock length piping and fittings;
Page 24.13

Preparation REPORT
of shop detailed drawings, supply of all materials, shop fabrication, surface
treatment and transport to site of pipe supports;
 Supply and installation of all insulation materials and pipe and valve identification
materials for pipe systems;
 Installation of all piping systems including in-line items, free issue control and manual
valves, pipe supports, pipe guides for a complete pipe system;
 Flushing and service leak testing of all piping systems;
 Flushing and hydro testing of all buried service piping systems; and
 Flushing, pickling, hydro testing of all hydraulic, fuel and acid piping systems.
24.5.7 Electrical and Instrumentation (E&I) Installation Works
The E&I contract package will include the supply and installation of all electrical and instrumentation works
for the process plant and the associated infrastructure. The contract will be tendered and awarded on the
basis of preliminary engineering deliverables and as such will be mostly “Schedule of Rates” contract with
a small portion contracted as a lump sum. This will be the last contractor to mobilize to the site. Parts of
the plant that are on the critical path in terms of E&I installation are the milling and regrind areas due to
the late arrival on site of the SAG mill and the tower mill. It is estimated that this contract will be completed
in 6 to 7 months. The scope of work for the E&I construction package will include:
 Offloading, handling and installation of all free issue electrical equipment and
instruments items, including levelling, aligning and grouting;
 Supply, transport to site and installation of all supports, cable tray materials, conduit,
earthing cable, power cables, control cables, small power and lighting, fasteners and all
miscellaneous items;
 Installation of required electrical components from LV side of the unit substation

transformers to plant distribution and termination;
 Installation and termination of owner supplied instruments; and
 Electrical testing and loop checking, pre-commissioning and testing of all E&I works.
24.6 Construction Management
The construction methodology proposed for the Santa Rosa Gold Project has the following aims:
 To provide a safe working environment;
Page 24.14
 ToTECHNICAL
AMENDED NI 43-101 achieve cost REPORT
and schedule targets;
 To adopt a cost effective and fit for purpose construction methodology in contracting and
site management based on tried and proven philosophies;
 To allow optimisation in constructability;
 To provide a management plan that complies with the requirements of both Red Eagle
Mining and the Engineer’s safety and environmental policies; and
 To achieve maximum possible utilization of local resources.
A construction management execution plan will be prepared to provide a project specific statement and
work plan on how the Engineer will organise, perform, and execute the construction management
responsibilities for the Project. The plan will define the interfaces with engineering, procurement, and
commissioning, to ensure construction is executed in a timely, cost effective manner in accordance with all
project objectives. The construction plan will document the intended construction approach to the Project
starting with early site capture through commissioning and start-up. The intent of this document is to
clearly lay out the planned approach to construction for understanding by all Project stakeholders.
The Engineer’s construction management team will manage and coordinate all construction activities
within the scope of the Project to ensure control over cost, schedule, and quality. The construction
manager will be located in the engineering office during the first few months of the project and then
transferred to the site when construction commences. He will define the specific duties of key construction
management personnel to suit the construction requirements of the Project. He will be responsible for the
overall construction planning, cost, and scheduling. He will also ensure that all aspects of the work are
properly set up with the necessary project controls for items such as: planning and scheduling; cost
control, document control, accounting, project risk analysis, forecasting, trending, and change control.
The field engineering team will be responsible for providing engineering design support on any technical
matters arising during construction.
24.7 Commissioning
24.7.1 General
The main objective of commissioning is to safely introduce production material to the process plant on the
earliest possible date and turn over to Red Eagle Mining an integrated plant capable of continuous and
reliable performance.
Page 24.15
A commissioning
AMENDED manager
NI 43-101 in conjunction
TECHNICAL REPORTwith Red Eagle Mining’s process plant manager and his team
will plan, coordinate, and execute all pre-commissioning and commissioning activities. The pre-
commissioning, commissioning, turnover and acceptance methodology to be used for the facilities will be
a systems based approach. The total scope of facilities for the Project will be divided into sub-systems
based on operational function. A systems index will be developed and maintained as a key control
document. The sub-systems will be grouped into operable systems that will be identified on the systems
index and on the Project schedule. Turnover packages including pre-commissioning and commissioning
documentation will be managed by operable systems with detailed tasks being performed at the sub-
system level.
Upon completion of work (system completion) for the facilities, critical pre-commissioning and
commissioning activities shall be performed in order to confirm all parts of the facilities are in good working
order and meet the minimum acceptable performance requirements.
24.7.2 Pre-commissioning and Testing
After verification that the plant has been constructed in accordance with the design (conformance with
P&IDs and drawings), construction and installation testing would typically include hydrostatic pressure
tests, flushing of lines, alignment checks, electrical point to point checks, and component identification
checks. Dry commissioning includes motor direction tests, all drives run, conveyors run and tracked,
instruments checked, control system verified and facility sequence testing. By the conclusion of pre-
commissioning all equipment and systems must be cleaned out.
The construction manager, via the construction supervisors, is responsible for managing all pre-
commissioning activities, along with recording and approval of results. The testing will be conducted by
the appropriate contractor. The commissioning manager will assist with coordinating the dry
commissioning phase of pre-commissioning.
24.7.3 Mechanical Completion
Mechanical completion of a section of the plant is achieved when pre-commissioning is complete and it
meets all requirements with respect to design, safety, physical operability and specifications and the
relevant module is ready for extended operation and/or the introduction of ore / process fluids.
24.7.4 Wet Commissioning
Wet commissioning consists of successfully testing and operating the equipment grouped together into
systems or modules, but without ore or reagents or other process material. At the successful conclusion of
wet commissioning, ore / process fluids are introduced into the circuit and process commissioning
commences.
Page 24.16
AMENDEDProcess
NI 43-101Commissioning
Process commissioning follows the successful completion of wet commissioning. During this time, the
initial introduction of ore and reagents to the process will occur. The circuit will be operated to achieve
nominal throughput and metallurgical performance. Process commissioning will be managed by the
commissioning manager using Red Eagle Mining’s operating personnel. The commissioning will be
performed at a multi-system level, incorporating systems defined in the process functional specifications.
The system start-up sequence will follow the order defined in the process flow sheets for the start-up of
the process plant under normal operation. Completion of this phase is achieved once the milestone
production rates for each system within the process plant have been achieved.
24.8 Project Close-out and Handover
Project close-out involves finalising all outstanding issues and work items when the work is complete and
the Engineer’s responsibilities end. At the completion of all construction and commissioning activities, the
Engineer will provide the following close-out information to Red Eagle Mining:
 As-built drawings;
 Piping and instrumentation diagrams (P&IDs);
 Electrical as-built drawings;
 Commissioning data and records;
 Quality records;
 Project close-out report; and
 Operating manuals and recommended spares lists.
The Engineer will create and issue for Red Eagle Mining’s sign off a handover certificate reflecting the fact
that the plant is complete and operational, has been commissioned, that all performance warranties have
been achieved and is fully functional.
24.9 Project Execution Schedule
A Project execution schedule has been prepared as part of this Feasibility Study. The schedule is
provided in Fig 24.1. The estimated project duration is 16 months. The engineering activities will take
approximately 9 months, the site construction activities will be completed in 12 months followed by
commissioning. This schedule is based on Lycopodium’s understanding of the project scope, current lead
times for the delivery of critical equipment (SAG mill and tower mill), and typical duration of engineering
and site activities based on similar size projects executed by Lycopodium. The major project milestones
are summarised in Table 24.3 below.
Page 24.17

Table 24.3 Major Project Milestones
Major Milestone Month

Start of Detailed Engineering Month 1
Award SAG mill package Month 2
Award Tower mill package Month 2
Frozen PDC and Flow sheets Month 3
Award Bulk Earthworks Contract Month 3
Start Construction (Bulk Earthworks) Month 4
Start Construction of mine portal Month 4
Start Concrete Works Month 6
Start Field Erected Tankage Month 8
Complete Bulk Earthworks Month 9
Start SMP Installation Month 9
Detailed Engineering Complete Month 9
Start E&I Installation Month 10
Concrete Works Complete Month 11
Field Erected Tankage Complete Month 12
SAG Mill and Tower mill arrive on site Month 12
SMP Installation Complete Month 15
E&I Installation Complete Month 16
Start Commissioning Month 15
Commissioning Complete Month 16
The critical path for the Project has been identified as follows:
 Tender and Place SAG mill and mower mill orders;
 SAG mill and tower mill manufacture and transport to site;
 Milling area SMP installation;
 Milling area E&I installation;
 Plant services area E&I installation;
 Pre-commissioning; and
 Commissioning.
Page 24.18
Figure 24.1 Project execution schedule

Page 24.19
25.0 INTERPRETATION
AMENDED NI 43-101 TECHNICAL REPORT AND CONCLUSIONS
25.1 Geology and Mineral Resource
The San Ramon deposit is a mesothermal, shear-zone-hosted gold deposit within the Cretaceous
Antioquia Batholith in northern Colombia. The age of mineralization is not specifically known, but
mineralization could have taken place at any time from the late Cretaceous to Tertiary. The shear zone
and mineralization strike east-west and dip predominantly 70° to 85° to the north; the dip shallows to 50°
to 60° at depth. The known deposit, roughly 2,000 m in strike length, is well-defined at the west end but is
open-ended down-plunge to the east.
The geological model completed in 2013 and used in this Feasibility Study imparts a high level of
confidence in the resource and in the understanding of the project. It has laid the groundwork for clear
and effective exploration, as well as resource estimation. The geologic models of the shear zone, country
rock, redox, and saprolite are based on core photos; detailed drill-hole logging of lithology, alteration,
weathering, oxidation and structure; and lithology, redox, and weathering summaries normalized for
consistent interpretations. Red Eagle Mining geologists provided continuous interpretive input and
oversight. QA/QC programs have been in place to monitor the quality of San Ramon assays, and the
results of the programs are generally positive.
A high level of confidence in the estimated global gold content at San Ramon deposit is demonstrated by
the amount of the Measured and Indicated material (75%) in the resource; the remainder is Inferred. Most
of the Inferred material is due to wide-spaced drill density (~100 m) below 200 m to 250 m depth.
25.2 Mining and Mineable Reserves
Mineable reserves were developed using the resource modelled high-grade domains along with undiluted
grade estimates. The high-grade domains were used as a basis for stope designs. Measured and
Indicated resources above and below the economic cut-off grades (oxide 1.96g Au/t, transition 2.14g Au/t,
and sulfide 2.00g Au/t) were determined for the stope solids. Dilution was deemed necessary due to the
narrowness of the stope solids (averaging 3m), and 0.25m selvedge was added to each side of the stope
outlines. Dilution with Measured and Indicated material was added at modelled grades; waste and Inferred
dilution material was added at zero grade.
A mining method was developed that was considered suitable to the geometry of the stope solids, and the
geotechnical characteristics of the shear zone containing the high grade domains. The method developed
was Mechanized Shrinkage with Delayed Fill (MSDF). This method has the advantages of:
 dilution and ore loss during mucking are greatly reduced;
 the powder factor required is reduced in comparison to the similar method of cut-and-fill
mining;
 leaving mined ore in the stope maintains wall stability until the ore is mucked out;
Page 25.1

underground REPORTof ore will be available that can be delivered as required to the
stockpiles
mill; and
 easy to convert to cut-and-fill techniques where ground conditions become weak.
Life of mine production schedules were created based on required development and the designed stopes.
The schedules were done on a monthly basis and include productivity from contractor quotations. These
schedules were used for first principle cost evaluation and economic analysis.
Reserves have been classified in order to increase confidence into Proven and Probable categories to be
in compliance with the “CIM Definition Standards – for Mineral Resource and Mineral Reserves” (2014)
and therefore Canadian National Instrument 43-101.
25.3 Metallurgical Testing and Recovery Methods
Metallurgical testwork has been performed on numerous sample composites from the San Ramon
deposit. The earliest program was intended to characterize the major lithology, redox, and weathering
types at a wide range of grades. Variability within the unoxidized shear zone material was addressed in
the 2013 program. However, only two of six of the composites were of grades above the potential
underground-mining cut-off. The most recent metallurgical program focused on testing composites that
are representative of underground-mineable material. These composites were of grades exceeding 2.0 g
Au/t and are comprised of unoxidized and unweathered material spatially distributed within the shear
zone, which represents the bulk of the economic mineralization.
Metallurgical laboratory testwork achieved the desired quality and demonstrated that by using the
designed process flowsheet it is possible to economically recover gold from the San Ramon deposit.
process prior to the tailings being filtered. Part of the filtered tailings will be stacked in a dry waste
management facility; the balance will be used as backfill in the mine. Filtrate will be recycled back to the
process plant to minimise the raw water requirement.
Site infrastructure facilities in support of the mining and processing of the San Ramon deposit have been
developed to take into consideration the local topographic features, water courses and access. The plant
site footprint has been optimised to take into account local topography and minimise visibility and noise
impact to the communities nearby. The level of the detail and planning is commensurate with that normally
associated with Feasibility Study level.
Page 25.2
There is adequate
AMENDED TECHNICAL
NI 43-101space REPORTfacilities and there are no known adverse conditions that could
for the intended
affect the design and construction of the required project infrastructure. The layouts of equipment and
building sizes including auxiliary buildings, maintenance facilities, and power supply infrastructure will be
compatible with other similar size projects.
The current level of infrastructure design incorporates all necessary facilities to protect the environment
including water treatment, sewage disposal, surface water catchment, retention ponds and recirculation
systems.
25.5 Capital Cost Estimate
contingencies for all the facilities required to bring the Santa Rosa Gold Project into production, as defined
by this Feasibility Study. All equipment and material are assumed to be new. The labour rate build up is
based on the statutory laws governing benefits to workers in effect in Colombia at the time of the estimate.
Colombian import tariffs have been applied.
The mining capital cost estimate has been costed from the mine development design using firm contractor
mining tendered prices.
The estimate does not include any allowances for escalation, exchange rate fluctuations or project risks.
The execution strategy for the process plant and infrastructure is based on an EPCM implementation
approach and horizontal (discipline based) packaging, in conjunction with the Red Eagle Mining
construction and management team. The capital cost estimate has a predicted accuracy of +/- 15%.
The total estimated cost of the overall project (mine, process plant, and infrastructure) is 69.90 million.
This amount excludes recoverable value added taxes.
25.6 Operating Cost Estimate
Mine operating costs have been developed from detailed stope production scheduling and equipment
cycle times. Firm contractor mining man and equipment hire rates were then applied to the results of these
exercises to obtain costs per tonne of ore mined.
The mine annual operating cost was determined to average 37.36 per tonne of ore mined. In addition with
expensed development capital averaging approximately 4.0 M dollars per year or 11.40 per tonne of ore
mined. Process plant operating costs have been developed using the plant parameters specified in the
process design criteria. The operating cost estimate includes all the cost items relevant to processing the
ore by crushing and grinding, flotation, CIL, electrowinning and smelting to produce gold doré.
The process plant annual operating cost was determined to be 8.87 million US, which equates to 24.64
per tonne of ore processed or 175.23 per oz of gold produced. With inclusion of G&A costs, the total
annual operating cost is 12.38 million US, which equates to 34.38 per tonne of ore processed or 244.53
per oz of gold produced.
Page 25.3
25.7
AMENDEDEconomic AnalysisREPORT
NI 43-101 TECHNICAL
In the economic analysis, the compilation of the operating, sustaining, capital, taxes, royalties and other
costs reflects the mine development and operating scenario.
The analysis uses fully diluted Proven and Probable reserves for the Project. The generated cash-flow
model was carried out on a pre-tax and post-tax basis. Net gross revenues were estimated using a 1,300
per ounce gold price with revenue deductions for royalties, refining, transportation and insurance costs.
Cash cost calculations use the total operating cost plus royalties divided by the payable gold ounces.
Total costs are calculated using the total costs (operating and capital) plus royalties and taxes divided by
the payable gold ounces.
The cash-flow model calculates the Net Present Value (NPV) based on a discounted rate of 0%
on total investment and the payback period were also calculated. A sensitivity analysis was also
conducted on parameters that are deemed to have the biggest impact on the Project financial
performance (capital cost, operating cost and gold selling price).
The economic analysis demonstrates robust economics and confirms the overall viability of the project.
25.8 Environmental Studies, Permitting, and Social and Community Impact
All the environmental impacts have been identified and mitigation measures developed. An Environmental
Impact Assessment (EIA) was prepared for the Project and submitted to the state environmental
regulatory authority.
Red Eagle Mining has a number of sustainable programs planned that will positively develop the social
environment. This will be achieved by the existing commitment to maximize the recruitment of local
personnel during both construction and operations. It is estimated that at least 150 people will benefit from
direct employment and at least another 500 will benefit indirectly. Local suppliers of goods and support
services to the mine will be able to develop their businesses through increased opportunities. Education
and training programs will raise the skills level of the workers in the area. Culturally the local communities
are willing to accept change and have a high potential and desire to improve and benefit themselves.
The project footprint lies within an area owned by a single landowner and therefore there is limited effect
on land or property tenure.
There are no impacts related to displacement of the local population and any impacts on their way of life
are minimal and management plans are in place to mitigate these. The remote location of the project in
relation to the local communities and population assists in minimizing any potential impacts.
Page 25.4
25.9
AMENDEDRisks and
NI 43-101 Opportunities
TECHNICAL REPORT
The following overview provides details of the risk management process that took place during the Santa
Rosa Gold Project Feasibility Study, in order to identify risks which may be encountered during the Project
execution phase.
In general, the risk management process helps ensure that a project is designed, constructed,
commissioned, and operated with an acceptable level of risk in relation to its financial viability, to the
environment, to the community, and to the health and safety of personnel and plant integrity.
The risk management workshop completed during this Feasibility Study addressed the risks associated
with the various future project activities, including:
 Engineering and studies;
 Permitting;
 Procurement; and
 Construction and Commissioning.
The following list will discuss some of the risks identified during the risk management workshops as
potentially severe or high after mitigation.
 Concentrate regrind mill may be slightly undersized. Work is currently underway to

optimize both the regrind size and the mass pull in flotation in order to specify the
regrind more accurately. Although the regrind mill is designed to produce a P80 of 25
microns, indications from both the testwork and mineralogical studies suggest that only
a “light” regrind is required. Furthermore, the flotation mass pull is high compared to the
total sulfide content of the ore and optimizing this stage is expected to significantly
reduce the tonnage of concentrate requiring regrinding;
 Delays in construction of the 44 kV power line from the EPM substation to the
switchyard at the project site. The impact would be delayed commissioning of the
process plant resulting in loss of revenue in the first year of production. This would be a
design, build contract with EPM. To mitigate this risk the Project should incorporate as
much float as possible into the power line construction schedule so that it would not be
on the critical path of the project construction and commissioning. Another mitigation
measure would be to secure the supply of rental diesel generators to provide power to
the plant in case the power line is not complete. Several local vendors have been
identified capable of supplying the required size rental generators to satisfy the power
needs of the project;
Page 25.5

There is a minorREPORT
risk that the rock quality encountered in the initial decline development
may be worse than anticipated, and if a failure occurs, it will cause excessive delays and
costs to remedy. This has been mitigated by drilling geotechnical holes into the saprolite
and analysing the rock quality. It is planned to install weep holes into the saprolite to
relieve any presence of water saturation. Additionally, steel arch sets, rockbolts and
reinforced shotcrete have been allowed for in the upper section of the decline;
 The narrow widths of the ore zones have the potential to attract additional dilution if not
mined carefully. This has been mitigated by the allowance of wall dilution, or selvedge of
0.25 m on either side of the stope outlines. This increased the minimum mining width to
2.5 m. The mining method (MSDF) also has the advantage of managing wall overbreak
closely. However, there is still risk of wall sloughing during and after mucking out and
backfill placement;
 MSDF is a relatively uncommon mining method, and will be undertaken with a

Colombian contractor who is inexperienced in ore production mining techniques. This
will be mitigated by the introduction of an expatriate specialised mining training team for
the first year of production. Additionally, and most importantly, the mining method can be
easily converted to conventional cut-and-fill techniques, which minimises large wall
exposures;
 There is potential for a higher degree of sulphide oxidation resulting in possible acid
generation in the DWMF underdrainage system. This is mitigated by the blending of
mine development waste rock (granodiorite), which has relatively strong acid consuming
characteristics. The mine waste rock will be added to the filtered tailings in ratio of
approximately 1 to 2;
 There is always the risk of security in Colombia, although the situation is constantly
improving over time. The Santa Rosa Gold Project has never had an incident of security
breach. This is mitigated by the fact that Red Eagle Mining has introduced the services
of the Colombian national army under contract, as a precaution, to patrol the project site
and surroundings around the clock. This service has been in operation for 2 years to
date and will continue for the life of the mine; and
 Mineralization at the 2 g Au/t, the economic cut-off grade, is continuous over distances
of hundreds of meters within the San Ramon deposit. While MDA has demonstrated that
the overall quantity of gold in the ore reserves is as stated, there is a lack of
demonstrated continuity in the very high-grade sub-domain (>5 g Au/t) at the current
50m spacing. Mitigation will require detailed delineation drilling to be carried out in
advance of design and development of the final stoping blocks in readiness for mining.
This discontinuity of the highest-grade zones may also be a problem in maintaining
steady feed grades to the process plant. This has been mitigated by the MSDF mining
method, whereby draw of ore from a number of stopes will provide grade control
flexibility.
Page 25.6
The following
AMENDED TECHNICAL
opportunities
NI 43-101 REPORT
have been identified:
 Current testwork shows significantly lower cyanide consumption compared to that

established from earlier testwork. If these results are confirmed by further testwork it will
result in a reduction in operating costs;
 Testwork results indicate that a coarser grind size (150 microns) will not impact gold
recoveries. If confirmed with additional testwork then a coarser grind size will reduce the
overall grinding power requirement thus reducing operating costs. The mill size could
also be reduced resulting in capital cost reduction. This will also assist in the tailings
filtration process;
 The inclusion of a tails thickener will allow for recovery of cyanide thus lowering the
overall cyanide consumption. This will reduce the operating cost but its impact on the
capital costs needs to be evaluated;
 Testwork results indicate that a reduction in the leach time will not impact gold
extraction. If confirmed with additional testwork then a shorter leach time will reduce the
size of the leach train thus resulting in capital and operating cost reductions;
 The San Ramon deposit appears to be plunging to the east into a tenement recently
acquired from AngloGold Ashanti. This area has never been drill tested. Red Eagle
Mining now owns property extending for over 2 km further to the east of the present
extent of the deposit. The known deposit is also open-ended down-dip;
 If conditions underground indicate continuous ore zones of constant widths and dip, then
the method of sub-level retreat long haul stoping could be adopted in these areas. This
method would reduce costs and increase productivity significantly;
 Because the continuity of mineralization exceeding 5 g Au/t is less than the current 50 m
drill spacing, there is potential to encounter additional very high-grade quartz / sulfide
zones during infill drilling from underground and during mining that were not located by
drilling from the surface. However, this potential cannot be quantified and has not been
included in the current resource; and
 Sample integrity studies show that gold grade decreases significantly at core recoveries
below 70%, which may be due to washing out of gold from softer rocks during drilling.
Evaluation of core recoveries for the various lithologic, weathering, and oxide types
indicates that recovery in saprolite / oxidized rock is much lower than in unweathered
and unoxidized rocks. Additionally, free gold or gold associated with sulfide minerals in
soft, clayey gouge in the shear zone could be washed out, resulting in poor recovery
and preferential loss of gold in the sample. Assays of samples of such rock may,
therefore, be understated where core recoveries are below 70%.
Page 25.7
26.0
AMENDED NI 43-101 TECHNICAL REPORT RECOMMENDATIONS
26.1 Geology and Mineral Resources
This Feasibility Study demonstrates that the San Ramon deposit is a project of merit that warrants
continued exploration to expand the resource. Once the shear zone mineralization is accessed by the
exploration decline, testing can be conducted on the mineral deposit in situ. The decline will also be
available for infill-drilling recommended to further delineate the deposit, and for exploration for new
mineralization down-dip and to the east of the current known resource.
26.2 Mining and Mineral Reserves
Additional study for mining should be undertaken and include:
 The Feasibility Study assumes mining contractors will be used to offset mining capital.
Proposals were received as part of the mining study, and several discussions have been
underway with multiple mining contractors. These negotiations need to be completed
with the goal of developing a working partnership with the contractor that will promote
productivity and safety while maintaining costs at a minimum;
 Mining contractors in the area are very experienced in underground construction and
development, but are less experienced in mine production. Red Eagle Mining has
decided to bring in a team of experienced mining experts to help train the contract
miners. To make this strategy successful these mining experts need to be sourced;
 Management of dilution and ore loss will be the key to the success of the underground
operations. This will require planning and implementation of a delineation program and
the procedures to be used. Red Eagle Mining should determine the procedures and
work flow required to ensure a successful program of delineation for stopes. This
includes how drill planning is done, how drilling results are tracked, establishment of
quality control protocols and procedures, modelling of results, inclusion into detailed
stope designs, and reconciliation of planned and actual mining; and
 Explosives are supplied by the Colombian Government and are long lead orders.
Negotiations with contractors need to be completed and orders placed to ensure that
explosive products are available when required.
Page 26.1
26.3
AMENDEDMetallurgical Testing
NI 43-101 TECHNICAL and Recovery Methods
REPORT
To compliment the results of the Feasibility Study, additional metallurgical testwork is recommended as
follows:
 Bulk flotation testwork to generate 10 to 20 kg of flotation concentrate using 100 to 200

kg sample. It is recommended that the sample is extracted from the existing Hilo Azul
underground cross cut, which intersects the full width of the shear zone in sulphides;
 Regrind testwork should be undertaken by the selected equipment vendor using the
flotation concentrate. This testwork will confirm the size of the regrind equipment, refine
the operating cost estimate and will facilitate process guarantees upon purchase of the
equipment;
 The bulk flotation tail and reground product should be collected after testing. The
samples should be sent for vendor thickening and filtration testwork to facilitate process
guarantees upon purchase of the equipment; and
 Given the lower cyanide consumption and lower final cyanide concentration in the coast
down tests, further testing is recommended to optimize the cyanide concentration and
dosage schedule during the leach step.
In addition to metallurgical testwork the following modelling and value engineering assessments are
recommended:
 Value engineering assessment of the inclusion of a tail thickener to recover cyanide

should be undertaken. The current design minimises capital rather than operating cost;
and
 Given the closed circuit nature of the flowsheet it is recommended that a more detailed
mass and chemical modelling of the circuit be undertaken including both the plant and
site water system to better define the chemistry of circulating loads and the final effluent.
Due to the reduction in the project site footprint and process plant relocation late in the Feasibility Study,
an extension to the completed geotechnical program needs to be undertaken for the equipment and
building foundations in the current location of the plant site to supplement the drilling done as part of this
Feasibility Study. The program must be completed prior to the start of detailed engineering.
Detailed placement plans will be required to match the quantities of tailings and mine rock as per the mine
plan with the stability, water management and erosion requirements of the DWMF.
Page 26.2
26.5
AMENDEDEnvironmental Studies,
NI 43-101 TECHNICAL Permitting, and Social and Community Impact
REPORT
Red Eagle Mining needs to obtain the necessary Environmental License in order to start construction
activities at the Project site. The social program of information and workshops that have been running for
over two years should continue through the duration of operations. The corporate policy of Red Eagle
Mining is to remain transparent to all communities and stakeholders in the region.
Red Eagle Mining must involve residents of the local communities in its ongoing environmental monitoring
programs, and also in all operational activities.
Red Eagle Mining is committed to continue the existing and planned future community education and
training programs.
26.6 Main Recommendation
The Feasibility Study for the Santa Rosa Gold Project has been completed in sufficient detail to refine the
economics to a +/-15% level of accuracy and outline the issues facing the project going forward. The
Project economics are sufficiently robust to warrant moving to the next phase of detailed engineering and
construction. The estimated cost for the entire mine development and process plant and infrastructure
construction up to, and including start-up and commissioning is 69.90 million (excluding VAT to be paid,
but reclaimed in the first year of production).
Table 26.1 Recommended Additional Work Cost Estimate
Additional Work Cost Estimate

Mining Contract Negotiations $15,000
Bulk Flotation Testwork $35,000
Regrind and Thickening Testwork No Cost (By Vendors)
Reagent Consumption Testwork (Cyanide) $20,000
Metallurgical Consultant for Testwork $25,000
Value Engineering $40,000
Geotechnical Drilling and Testwork $35,000
Mass and Chemical Circuit Modelling $35,000
TOTAL: $205,000
Page 26.3
27.0
AMENDED NI 43-101 TECHNICAL REPORT REFERENCES
Alvarez, O. A. G., (undated), Portafolio de Presentacion – Proyecto Yaruma San Ramon. Santa Rosa de
Osos (Antioquia), Republica de Colombia, Sur America.
Aspden, J.A. and Litherland, M., (1992), The geology and Mesozoic collisional history of the Cordillera
Real, Ecuador: Tectonophysics, v. 205, p. 187-204.
Cediel, F., and Caceres, C., 2000, Geological map of Colombia, 1: 2,000,000: Geotec Ltd., Bogotá, Third
Edition, digital format with legend and tectono-stratigraphic chart.
Cediel, F., Shaw, R.P. and Caceres, C., 2003, Tectonic assembly of the Northern Andean Block, in
Bartolini, C., R.T. Buffler, and J. Blickwede, eds., The Circum Gulf of Mexico and Caribbean: Hydrocarbon
habitats, basin formation, and plate tectonics: AAPG Memoir 79, p. 815 - 848.
Cobos, D., Espinosa, R., and Eldridge, T., May 2014, Memorandum: Rock mass characterization for
underground mine development.
Conestoga-Rovers Colombia SAS (CRA), 2013, Estudio de Impacto Ambiental para el Proyecto Minero
Santa Rosa.
Dyer, T. L., Lindholm, M. S., Schlitt, W. J., and Defilippi, C., 2014 (amended March 31; original October
10, 2013), Amended technical report and preliminary economic assessment, San Ramon deposit, Santa
Rosa project, Colombia: Report prepared for Red Eagle Mining Corporation by Mine Development
Associates, 207 p.
Feininger, T., and Botero-Arango, G., 1982, The Antioquian batholith, Colombia: Publicaciones Especiales
del INGEOMINAS, no. 12, Bogota, 50 p.
GeoLogic Associates, 2014, Lab Report Project #3848, September.
Golder Associates, 2013, Red Eagle Mining Proyecto Santa Rosa – Balance Hídrico Preliminar,
December.
Golder Associates, 2014a, Field report.
Golder Associates, 2014b, Santa Rosa Project Tailings Management Facility Design Report.
Gorham, J., 2007 (October 22), Summary report on the Gramalote property, Department of Antioquia,
Colombia: NI43-101 Technical Report prepared for B2Gold Corp.
Jemielita, R. A., 2011a (March 31), Canadian NI43-101 Technical Report; an assessment of the Santa
Rosa gold project, Department of Antioquia, Colombia: Report prepared for Red Eagle Mining
Corporation, 100 p.
Jemielita, R. A., 2011b (June 12), Canadian NI43-101 Technical Report (amended); an assessment of the
Santa Rosa gold project, Department of Antioquia, Colombia: Report prepared for Red Eagle Mining
Corporation, 148 p.
Kwok, D., and Choi, T., 2012 (September 7), Metallurgical tests for Red Eagle Mining, Santa Rosa project
in Colombia, Project No. 12015: Report prepared for Red Eagle Mining Corporation by AcmeMet, 28 p.
plus appendices.
Page 27.1

Lindholm, M. S., and Schlitt, W. J., 2013a (January 22), Technical report on the San Ramon deposit,
Santa Rosa project, Colombia: Report prepared for Red Eagle Mining Corporation by Mine Development
Associates, 86 p.
Lindholm, M. S., and Schlitt, W. J., 2013b (September 10), Updated technical report on the San Ramon
deposit, Santa Rosa project, Colombia: Report prepared for Red Eagle Mining Corporation by Mine
Development Associates, 120 p.
PRODEMINCA, 2000 (Junio), Potencial minero de distritos mineros del Ecuador; Evaluacion de distritos
mineros del Ecuador, v. 1: British Geological Survey and Direccion Nacional de Geologia, Proyecto de
Desarroyo Minero y su Control Ambiental (PRODEMINCA).
SGS Canada, July 2013, Modified ABA Certificate of Analysis, Project ES 29857-1.
Simard, J., 2011 (August), Report on an induced polarization survey performed on the Santa Rosa project,
Antioquia Department, Colombia: Report prepared for Red Eagle Mining Corporation by Geofisica TMC
SA de CV, 18 p.
Ugalde, H., and Misener, D. J., 2011 (January), Santa Rosa project magnetic interpretation, Colombia:
Report prepared for Red Eagle Mining Corporation by Paterson, Grant & Watson Limited, 12 p.
West, R. C., 1952, Colonial placer mining in Colombia: Louisiana State University Press Studies, Social
science series no. 2, 159 p.
Wilson, S. E., and Redwood, S. D., 2010 (June 9), Frontino Gold Mines Ltd., Antioquia, Colombia. NI43-
101 Technical Report: Prepared for Medoro Resources, Gran Colombia Gold, S.A., Tapestry Resources
Corp.
Page 27.2
CERTIFICATE OF QUALIFICATION
I, Stefan Gueorguiev, P.Eng. do hereby certify that:
1. I am currently employed as Manager of Projects/ Senior Project Manager in the consulting firm
Lycopodium Minerals Canada Ltd. located at 5060 Spectrum Way, Mississauga, Ontario,
Canada, L4W 5N5.
2. This certificate accompanies the report, dated October 27, 2014, and titled “Amended NI 43 101
Technical Report Feasibility Study of the Santa Rosa Gold Project”.
3. I graduated with a Bachelor of Science degree in Civil/ Structural Engineering from the
University of Architecture and Civil Engineering, Sofia, Bulgaria in 1991 and a Master of
Project Management degree from the Pennsylvania State University, Behrend College, Erie
Pennsylvania in 2010.
4. I am in good standing as a member of the Professional Engineers of Ontario (#90417163), the
Association of Professional Engineers and Geoscientists of Alberta (#92555), and the
Association of Professional Engineers and Geoscientists of Saskatchewan (#31311).
5. I have practiced my profession continuously since my graduation. My relevant experience

includes consulting and managing mining projects in various stages of the execution cycle from
scoping, pre-feasibility and feasibility studies through detailed design, construction, and
commissioning. I have been involved in gold, iron ore, diamond, and tar sands mining projects in
North America, South America, Europe, and West Africa.
6. I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 43-
101”) and certify that by reason of my education, affiliation with a professional association (as
defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a
“qualified person” for the purposes of NI 43-101.
7. I am independent of the Issuer and related companies applying all of the tests in section 1.5 of
National Instrument 43-101.
8. I am one of the authors of this Technical Report titled “Amended NI 43-101 Technical Report
Feasibility Study of the Santa Rosa Gold Project” prepared for Red Eagle Mining Corporation,
effective as of October 6, 2014. I am responsible for Sections 2, 3, 4, 5, 17, 18, 19, 20, 22, 23,
24, portions of Section 21 in relation to process plant capital and operating costs, and relevant
portions of Sections 1, 25, and 26 relating to processing.
9. I visited the Santa Rosa Project site on February 19, 2014.
10. As of the date of the certificate, to the best of my knowledge, information and belief, the
Technical Report contains the necessary scientific and technical information to make the
Technical Report not misleading.
11. I have read National Instrument 43-101 and Form 43-101F1, and the Technical Report has been
prepared in compliance with that instrument and form.
Dated October 27th, 2014.

“Stefan Gueorguiev"
Stefan Gueorguiev, P.Eng.
Hydrometal, Inc.
CERTIFICATE of QUALIFIED PERSON – William Joseph Schlitt
I, W. Joseph Schlitt, do hereby certify that:

 I am President of Hydrometal, Inc., P.O. Box 309, Knightsen, CA, 94548, U.S.A.
 I graduated with a Bachelor of Science degree in Metallurgical Engineering (with highest
honors) from Carnegie Institute of Technology, Pittsburgh, PA in 1964 and with a Doctor of
Philosophy degree in Metallurgy (with honors) from The Pennsylvania State University,
University Park, PA in 1968.
 I am a Qualified Professional member of the Mining and Metallurgical Society of America
No. 01003QP with specialty in metallurgy and a Registered Professional Metallurgical
Engineer (Texas No. 53603).
 I have practiced continuously as a Metallurgist for more than 45 years since my graduation
from university. The bulk of this work has focused on the extraction of base metals and
gold/silver from ores and concentrates. Some of the extraction studies involved milling and
flotation of sulfidic ores, where the sulfides were the carriers for such metals as copper, gold
and silver. The initial concentrates were either leach directly or further upgraded for sale to
a third party. Other extraction studies involved direct leaching of the mined ores or, in some
cases, sub-mill grade mine wastes.
 I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 43-
101”) and certify that by reason of my education, affiliation with a professional association
(as defined in NI 43-101), and past relevant work experience, I fulfill the requirements to be
a “qualified person” for the purposes of NI 43-101.
 I am responsible for the preparation of Section 13.0 Mineral Processing and Metallurgical
Testing, plus subsection 1.7 Mineral Processing and Metallurgical Testing in the Technical
Report entitled “Amended NI 43-101 Technical Report Feasibility Study of the Santa Rosa
Gold Project” and dated October 27, 2014 (the “Technical Report”). I visited the Santa
Rosa property on February 19-22, 2013. On several occasions I have visited the major
metallurgical laboratories where testwork has been performed on the various samples.
 I was co-author of the previous Technical Report on the San Ramon deposit dated January
22, 2013 entitled “Technical Report on the San Ramon Deposit, Santa Rosa Project,
Colombia.” I was also the co-author of the previous Technical Report dated September 10,
2013 entitled “Updated Technical Report on the San Ramon Deposit, Santa Rosa Project,
Colombia” and the previous Technical Report dated March 31, 2014 entitled “Amended
Technical Report and Preliminary Economic Assessment, San Ramon Deposit, Santa Rosa
Project, Colombia”. Prior to the work done for the previous Technical Reports, I have not
been involved with Red Eagle Mining for the property that is the subject of this Technical
Report.
 As of the effective date of this Technical Report, to the best of my knowledge, information,
and belief, those parts of the Technical Report for which I am responsible contain all
scientific and technical information that is required to be disclosed to make the Technical
Report not misleading.
 I am independent of the issuer applying all of the tests in section 1.5 of National Instrument
43-101.
Hydrometal, Inc.
 I have read National Instrument 43-101 and Form 43-101F1, and the Technical Report has
been prepared in compliance with that instrument and form.
Dated this 27th Day of October 2014

/s/ W. Joseph Schlitt___
(Signed and sealed)
W. Joseph Schlitt, President
Hydrometal, Inc.
CERTIFICATE OF QUALIFIED PERSON
I, Terry Eldridge, P.Eng. of Golder Associates, 500-4260 Still Creek Drive, Burnaby, British Columbia,
hereby certify that:
1. I am a consulting geotechnical engineer, employed full time by Golder Associates, at the
address set out above.
2. I am a graduate of the University of British Columbia in civil engineering, with the degree
B.A.Sc granted in 1980. I also hold the degree of M.A.Sc in geotechnical engineering granted
by the University of British Columbia in 1983.
3. I am a member in good standing of the Association of Professional Engineers and
Geoscientists of British Columbia, Registration Number 14894.
4. I have worked as a Professional Engineer in the field of mine development since 1985, in
many parts of the world, including Canada, United States, Colombia, Peru, Chile, Argentina,
Brazil, Spain, Russia, Indonesia, Uruguay, Kyrgyzstan, Kazakhstan and Australia. I have
worked on dry stack tailings projects since 1994 and in the past 3 years have been involved in
the design of four dry stack tailings facilities for gold projects in South America. I am the
South American Mine Waste Management Practice Lead for Golder Associates.
5. I have read the definition of "qualified person" set out in National Instrument 43-101 ("NI 43-
101") and certify that by reason of my education, affiliation with a professional association (as
defined in NI 43101) and past relevant work experience, I fulfill the requirements to be a
"qualified person" for the purposes of NI 43-101.
6. I am responsible for the preparation of Sections 16.4 and 18.12 of the technical report entitled
"Amended NI 43-101 Technical Report Feasibility Study of the Santa Rosa Gold Project”,
dated October 27, 2014 relating to the Santa Rosa property. I visited the Santa Rosa property
February 20 to 22, 2013.
7. Prior to 2013 I had no involvement with the property that is the subject of the Technical
Report.
8. As of the date hereof, to the best of my knowledge, information and belief, the Sections of the
Technical Report set out above contain all scientific and technical information that is required
to be disclosed to make the Technical Report not misleading.
9. I am independent of the issuer as described in Section 1.5 of National Instrument 43-101. I
may inadvertently be the beneficial owner of an interest in any publicly traded company
through participation in mutual funds over whose portfolios I have no control.
10. I have read National Instrument 43-101 and Form 43-101F1, and the Technical Report has
11. I consent to the filing of the Technical Report with any stock exchange and other regulatory
authority and any publication by them for regulatory purposes, including electronic publication
in the public company files on their websites accessible by the public, of the Technical Report.
Dated this 27th day of October 2014.

Terry L. Eldridge
Terry L. Eldridge, P.Eng.
Principal, Golder Associates
CERTIFICATES OF QUALIFIED PERSONS
I, Thomas L. Dyer, P.E., do hereby certify that I am currently employed as Senior Enginer by Mine
Development Associates, Inc., 210 South Rock Blvd., Reno, Nevada 89502 and:
1. I am responsible for Sections 1.5, 1.6, 1.10.1, 1.11.1, 1.13.2, 15, 16, 21.1, 21.2, 25.2, and 26.2,
and jointly responsible for section 25.9 of this technical report, titled Amended NI 43-101
Technical Report - Feasibility Study of the Santa Rosa Gold Project, prepared by Lycopodium
Minerals Canada Ltd., for Red Eagle Mining Corporation, effective as of October 6 and dated
October 27, 2014 (“Technical Report”).
2. I graduated with a Bachelor of Science degree in Mine Engineering from South Dakota School
of Mines and Technology in 1996. I have worked as a mining engineer for a total of 18 years
since my graduation. During my Engineering career I have held various positions of
increasing responsibility at operating mines performing life of mine planning and cost
estimates. During the last 7 years I have been engaged in consulting on various lead, zinc,
gold, silver, copper, and limestone deposits both for underground and open pit operations.
This consulting work has primarily consisted of providing production schedules, mine cost
estimates, and cash-flow analysis. I am a Registered Professional Engineer in the state of
Nevada (#15729) and a Registered Member (#4029995RM) of the Society of Mining,
Metallurgy and Exploration.
defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a
4. I visited the property on September 25 through September 29, 2012 and again from February
19 to 22, 2013. I am independent of Red Eagle Mining Corporation and its subsidiaries,
applying all of the tests in section 1.5 of National Instrument 43-101. I have had prior
involvement with the Santa Rosa gold project as a co-author and Qualified Person responsible
for portions of the Technical Report and Preliminary Economic Assessment, San Ramon
Deposit, Santa Rosa Project, Colombia for Red Eagle Mining Corporation effective as of
October 1, 2013, and dated March 31, 2014 (“Technical Report”).
6. As of the effective date of this Technical Report, to the best of my knowledge, information,
and belief, those parts of the Technical Report for which I am responsible contain all scientific
and technical information that is required to be disclosed to make the Technical Report not
misleading.
Dated this 27th day of October, 2014.
“Thomas L. Dyer”
Thomas L. Dyer, P.E.

Print Name of Qualified Person
CERTIFICATES OF QUALIFIED PERSONS
I, Michael S. Lindholm, C.P.G., do hereby certify that I am currently employed as Project Geologist by
Mine Development Associates, Inc., 210 South Rock Blvd., Reno, Nevada 89502, and:
1. I am responsible for Sections 1.2 through 1.4, Sections 6 through 12, 14, 25.1, and 26.1, and
jointly responsible for Section 25.9 of this Technical Report, titled Amended NI 43-101
Technical Report - Feasibility Study of the Santa Rosa Gold Project, prepared by Lycopodium
Minerals Canada Ltd., for Red Eagle Mining Corporation, effective as of October 6 and dated
October 27, 2014 (“Technical Report”).
2. I graduated with a Bachelor of Science degree in Geology from Stephen F. Austin State
University in 1984 and with a Master of Science degree in Geology from Northern Arizona
University in 1989. I am a Professional Geologist in the state of California (#8152) and a
Certified Professional Geologist (#11477) with the American Institute of Professional
Geologists. I have worked as a geologist for a total of 29 years since graduation from
undergraduate university. During my career as a project geologist in the mining industry, I
have held various positions of increasing responsibility in the exploration, development and
mining of precious and base metal deposits. During the last 5 years I have been engaged in
consulting on a range of deposit types in varied geologic environments, primarily in North and
South America, including shear-hosted gold deposits similar to the Santa Rosa Gold project
The consulting work has consisted of independent verification of project data, geologic and
mineral domain modeling, and resource estimation.
defined in NI 43-101) and past relevant work experience, I fulfill the requirements of
4. I visited the Santa Rosa property most recently on May 14 through 17, 2013. I am
independent of Red Eagle Mining Corporation and all their subsidiaries as defined in Section
1.5 of NI 43-101 and in Section 1.5 of the Companion Policy to NI 43-101. I had no
involvement with the project prior to preparing and serving as a co-author and Qualified
Person responsible for previous Technical Reports dated January 2013, September 2013 and
March 2014 on the Santa Rosa project.
6. As of the effective date of this Technical Report, to the best of my knowledge, information,
and belief, those parts of the Technical Report for which I am responsible contain all scientific
and technical information that is required to be disclosed to make the Technical Report not
misleading.
Dated this 27th day of October, 2014.
“Michael S. Lindholm”
Signature of Qualified Person
Michael S. Lindholm, C.P.G.

San Ramon Feasibility Study

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AMENDED NI 43-101 TECHNICAL REPORT

FEASIBILITY STUDY OF THE SANTA ROSA GOLD

Issue Date: October 27, 2014

PREPARED BY THE FOLLOWING QUALIFIED PERSONS:

Mr. Stefan Gueorguiev, P. Eng., Lycopodium Minerals Canada Ltd.

Mr. Thomas L. Dyer, P.E., Mine Development Associates

Mr. Michael Lindholm, C.P.G., Mine Development Associates

Mr. W. Joseph Schlitt, Ph.D., P. Eng., Hydrometal Inc.

Mr. Terry Eldridge, P. Eng., Golder Associates South America Ltd.

AMENDED NI 43-101 TECHNICAL REPORT

This report is effective as of the 6th day of October, 2014

[Signed]____________________________________________________ October 27, 2014

[Signed]____________________________________________________ October 27, 2014

[Signed]____________________________________________________ October 27, 2014

[Signed]____________________________________________________ October 27, 2014

[Signed]____________________________________________________ October 27, 2014

TABLE 43-101 TECHNICAL REPORT

1.0 SUMMARY 1.16

2.0 INTRODUCTION 2.1

3.0 RELIANCE ON OTHER EXPERTS 3.1

4.0 PROPERTY DESCRIPTION AND LOCATION 4.1

5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND

6.0 HISTORY 6.1

7.0 GEOLOGIC SETTING AND MINERALIZATION 7.1

8.0 DEPOSIT TYPES 8.1

9.0 EXPLORATION 9.1

10.0 DRILLING 10.1

11.0 SAMPLE PREPARATION, ANALYSIS, AND SECURITY 11.1

12.0 DATA VERIFICATION 12.1

AMENDED NI 43-10112.1.5 Specific

13.0 MINERAL PROCESSING AND METALLURGICAL TESTING 13.1

14.0 MINERAL RESOURCE ESTIMATES 14.1

15.0 MINERAL RESERVE ESTIMATES 15.1

16.0 MINING METHODS 16.1

17.0 RECOVERY METHODS 17.1

18.0 PROJECT INFRASTRUCTURE 18.1

AMENDED NI 43-10118.10.6 Mine REPORT

19.0 MARKET STUDIES AND CONTRACTS 19.1

20.0 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY

21.0 CAPITAL AND OPERATING COSTS 21.1

AMENDED NI 43-10121.4.1 Introduction

22.0 ECONOMIC ANALYSIS 22.1

23.0 ADJACENT PROPERTIES 23.1

24.0 OTHER RELEVANT DATA 24.1

25.0 INTERPRETATION AND CONCLUSIONS 25.1

26.0 RECOMMENDATIONS 26.1

27.0 REFERENCES 27.1

Table 18.7NI 43-101Shear

AMENDED NI 43-101 TECHNICAL REPORT

FREQUENTLY USED ACRONYMS AND ABBREVIATIONS

AA atomic absorption spectrometry

This Feasibility Study was completed by:

 Hydrometal Inc. (“Hydrometal”) for metallurgical testwork management, largely

AMENDED NI 43-101 TECHNICAL

Santa Rosa Gold Project

1.1 Property Description and Ownership

 12 concession contracts; and

1.2 Exploration and Mining History

 Mapping and sampling historic workings and adits;

 Auger saprolite sampling;

 Soil sampling with mobile-metal-ion (“MMI”) analysis, covering over 20 square

 Helicopter-borne magnetic and radiometric surveying;

 Drilling of 11 geotechnical and hydrogeological holes in 2014.

1.3 Geology and Mineralization