Michiquillay Mining Project (the “Project”)
1. Summary
This project consist of a porphyry copper deposit, containing copper (Cu), gold (Au) and
molybdenum (Mo). The mineral resources presented in the project are estimated at 544
million metric tons (TM) with an average cut off of 0.4% Cu. The Project is expected to be
awarded during the last quarter of 2017.
2. Background
On June 5, 2007, Anglo American Michiquillay S.A. and Activos Mineros S.A.C., with the
intervention of Anglo American Services UK (Limited) and PROINVERSIÓN, entered into the
Agreement for the Transfer of concessions and others, which form the Michiquillay mining
project.
Subsequently, by certified letter dated December 4, 2014, Anglo American Michiquillay S.A.
decided to exercise the right to terminate the transfer agreement, as stipulated in clause nine
of the aforementioned agreement; therefor, on June 25, 2015 the parties execute the
document by which the ownership of the mining concessions and property of other assets
that comprise the Michiquillay Project, in favor of Activos Mineros S.A.C, were restored.
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Later in 2015, the mining company Milpo presented to ProInversión a Self-Sustained Private
Initiative for the development of the Project, being admitted by the Ministry of Energy and
Mines and by the correspondent authorities.
Notwithstanding the aforementioned, under the negotiations for the approval of the integral
structure of the Project, ProInversión made a series of observations/recommendations to the
initiative presented by Milpo, which, according to this company, were not in accordance with
the market costs. Due to this situation, in March of 2017 Milpo announced its decision to
withdraw from the promotion process of the initiative.
3. Location
Department: Cajamarca.
Province: Cajamarca.
District: La Encañada.
Location: 900 km from the city of Lima and 45 km from the city of Cajamarca.
Avg. height: 3000 meters above the sea level.
Michiquillay
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4. Assets of the project
The Project involves an–eighteen–concessions–asset; all of them to be transferred to the
new concessionaire:
Concession Hectare Mining Registry
Identification Number
(Lima Office of the Public
Registry)
Candelaria 96 114217
El Niño 80 114229
Encañada 1 180 113245
Encañada 2 350 113249
Encañada 3 760 113265
Encañada 4 350 113269
Encañada 5 33 113273
Encañada 6 100 113277
Encañada 7 117 113281
Encañada 8 10 114391
Encañada 9 160 122351
Encañada 10 144 123449
Encañada 11 360 123452
Encañada 12 250 123455
Encañada 13 500 122355
Encañada 14 10 143397
Encañada 15 450 177175
Mavila 100 114223
Total hectare: 4,050
And the following superficial assets located in the district of La Encañada, Cajamarca:
Real State Hectare Mining Registry
Identification Number
(Cajamarca Office of the
Public Registry)
Soccer Field 0.1875 145614
La Cienaga II 0.3477 86129
La Cienaga I 0.3050 86130
La Cienaga V 0.0270 86131
La Cienaga VI 0.1290 86132
La Cienaga III 1.0000 145616
La Cienaga IV 1.7180 145617
Yanaquero 1.1500 152853
Total area: 4.8642
5. Geology
Regarding their geology, the main structural units correspond to different environments of
formation (continental, littoral and marine) and stratigraphically belong to the cretaceous until
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the quaternary. They present quartzite and white sandstones, belonging to the Farrat
Formation of the Lower Cretaceous Gollarisquizga Group, calcareous sandstones and
ferruginous shales of the Inca Formation, sandy limestones, calcareous shales and marls of
the Late Cretaceous Chúlec Formation. These stratified rocks were intruded by a dacitic stock
of the Lower Tertiary, causing the mineralization.
The porphyry copper deposit occurs in the Michiquillay’s stock of the Tertiary, which intruded
quartzite and limestone from the Lower Cretaceous, with mineralized, stockwork and
mineralized veins scattered in their boxes.
The mineralization in the zone is linked to the location of dacitic-monzontic stocks, whose
age corresponds to the Lower Tertiary. The porphyries were located in intermediate - to -
felsic stocks that in - termed the Mesozoic sedimentary belt of the Western Cordillera in the
middle to upper tertiary by high - temperature hydrothermal solutions, favored by tectonic
movements that generated an intense failure and fracturing, called stockwork.
The most recent units are represented by glacial and glaciofluvial deposits that fill the valleys
and, to a lesser extent, alluvial and colluvial deposits on the slopes, filling small ravines.
In the upper part there was a leached and oxidized area with limonite, malachite, chrysocolla,
cuprite, calcantite of varying thicknesses from 20 m to 180 m, which is located on the area of
secondary sulphides with presence of calcosine, covelina, bornita, chalcopyrite, pyrite with
average thicknesses of 30 meters; below this zone are the primary sulphides consisting
mainly of chalcopyrite and pyrite.
The mineralized horizontal area has an elliptical shape, the major axis of which has an NE
heading.
Observing the initial front, front of maximum law of deposition and the final front of deposition
of the Michiquillay porphyry, it is concluded that there was some erosion of this hydrothermal
porphyry.
Previous studies determined the Project’s reserves at 544 million metric tons, which will allow
a production of 225,000 tons of copper per year.
6. Assets Ownership
Activos Mineros S.A.C. is the owner of the concessions and all the other assets of the Project,
in representation of the Peruvian government.
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Contact Information
Xenia Forno
Partner
[email protected]
Av. Dos de Mayo 1321
San Isidro, Lima – Peru
T (511) 208 3000
F (511) 442 3511
http:// www.rubio.pe
Milagros Maraví
Partner
[email protected]
Av. Dos de Mayo 1321
San Isidro, Lima – Peru
T (511) 208 3000
F (511) 442 3511
http:// www.rubio.pe
Carlos Arata
Partner
[email protected]
Av. Dos de Mayo 1321
San Isidro, Lima – Peru
T (511) 208 3030
F (511) 442 3511
http:// www.rubio.pe
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