NI 43-101 Technical Report on the Maranta Cu-Mo Project,Peru December 18,2021 Preparade for: Capstone Uni Mining Authors: Alvaro Rodolfo De la Cruz Acuña Jeffrey Nicser Arias Paitan Saul Aroni Barrios Maycol Ayala Melo Franco Jamanca Caceres Jesus Rubina Valderrama GENERAL INDEX 1. SUMMARY .................................................................................................................... 6 2. INTRODUCTION........................................................................................................... 6 3. DESCRIPTION AND LOCATION OF THE PROPERTY ............................................... 7 3.1 Project Location ........................................................................................................ 7 4. ACCESSIBILITY, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY. ......................................................................................................... 8 4.1 Accessibility............................................................................................................... 8 4.2 Local Resources and Infrastructure ............................................................................ 9 4.3 Physiography ........................................................................................................... 10 4.3.1 Flora..................................................................................................................... 10 4.3.2 Fauna ................................................................................................................... 11 5. CLIMATE ................................................................................................................ 11 5.1 Air Temperature..................................................................................................... 12 6. HISTORY ................................................................................................................. 13 7. GEOLOGICAL FRAMEWORK AND MINERALIZATION...................................... 13 7.1 Geological Environment ........................................................................................... 13 7.2 Regional Geology ..................................................................................................... 13 8. TYPE OF DEPOSIT.................................................................................................. 14 9. EXPLORATION ....................................................................................................... 14 10. DRILLING.............................................................................................................. 15 11. SAFETY, PREPARATION AND ANALYSIS OF SAMPLES ................................... 16 12. MINERAL PROCESSING AND METALLURGICAL TEST ....................................... 17 13. TRANSPORT AND MARKETING OF CONCENTRATE ........................................... 17 14.ESTIMATION OF MINERAL RESOURCES ............................................................... 18 14.1 Database ................................................................................................................ 18 14.2 Geological interpretation and modeling................................................................... 19 14.3 Exploratory Data Analysis (EDA). .......................................................................... 20 14.3.1. Descriptive statistics ........................................................................................ 21 14.3.1.1 Descriptive statistics of the data for lithology 1. .............................................. 21 14.3.1.2 Descriptive statistics of the data for lithology 2. .............................................. 22 14.3.2. Correlation between metals ............................................................................. 22 14.4 Compositing ....................................................................................................... 23 14.5 Variography ....................................................................................................... 24 14.7Block Model ........................................................................................................ 26 15. CALCULATION OF MINING RESERVES ................................................................ 27 15.2 Pit by Pit ................................................................................................................... 28 15.3Cut off ....................................................................................................................... 30 16.1 Mineral Reserves ....................................................................................................... 33 16.2.1Production rate and sizing .................................................................................... 34 16.3.1 Drilling Calculation ......................................................................................... 35 17. RECOVERY METHODS ............................................................................................ 37 17.1 Plant Design........................................................................................................... 38 17.1.1 Oxide ore plant ................................................................................................ 38 17.1.2 Four-stage crushing circuit............................................................................... 38 17.1.3 Tub leaching .................................................................................................... 38 17.1.4 Clarification .................................................................................................... 39 17.1.5 Solution ponds ................................................................................................. 39 17.1.6 Gravel ............................................................................................................. 39 17.1.7 Solvent Extraction (SX) .................................................................................... 40 17.1.8 Electrodeposition (EW) .................................................................................... 40 17.1.9 Reagents .......................................................................................................... 40 17.1.10 Services ......................................................................................................... 41 17.1.11 Sulphide ore plant .......................................................................................... 41 17.1.12 Primary crushing ........................................................................................... 42 17.1.13 Storage and recovery system for crushed ore................................................... 43 17.1.14 Grinding ........................................................................................................ 43 17.1.15 BULK flotation of CU-MO ............................................................................. 43 17.1.16 Molybdenum separation ................................................................................. 43 17.1.17 Spacing and filtration of copper concentrate ................................................... 44 17.1.18 Storage and loading of copper concentrate ...................................................... 44 18. INFRAESTRUTURE ............................................................................................... 14 20. New Technologies .................................................................................................... 50 INDEX FIGURES Figure 3.1 Maranta Project Location .............................................................................. 8 Figure 10.1. Drills ........................................................................................................... 15 Figure 11.1. Drilling samples ........................................................................................ 16 Figure 14.2.1. Longitudinal view of wireframe ............................................................. 19 Figure 14.5.1. Spherical variogram and experimental variogram for Cu in lithology 1. ........................................................................................................................................ 25 Figure 14.6.2. Spherical variogram and experimental variogram for Cu in lithology 2 ........................................................................................................................................ 26 Figure 14.7.1. Plan view of the block model representing lithology. .......................... 26 Figure 15.2.1 Pit by Pit Analysis ................................................................................... 30 Figure 16.1 Mining sequencing ..................................................................................... 32 Figure 16.2.1Preliminary Plan Prodution ..................................................................... 35 Figure 16.3.1 Drilling Machine ...................................................................................... 35 Figure 17.1. Oxide ore Process Flowchart ................................................................... 41 Figure 17.1.11. Flowchart of the sulfur minerals process. .......................................... 42 Figure 18.1.1 Typical Track Section ............................................................................ 46 TABLE INDEX Table 4.3.1. Flower species found in the project area ................................................. 10 Table 4.3.2 Species of animals found in the project area .......................................... 11 Table 14.1.1. Project limits and block dimensions ...................................................... 18 Table 14.1.2. Maranta project database. ....................................................................... 19 Table 14.3.1. Descriptive statistics applied to data ..................................................... 20 Table 14.4.1. 2- Meter composite. ................................................................................ 24 Table 14.5.1. Angular parameters. ................................................................................ 24 Table 14.5.2. Distance parameters. ............................................................................... 25 Table 15.3.1. Point Values ............................................................................................. 31 Table 16.3 Geometric Parameters................................................................................. 33 Table 16.4. Ramp width calculation. ............................................................................. 33 Table 16.1.1. Proven and probable mineral reserves .................................................. 34 Table 16.2.1.Preliminary Plan Production .................................................................... 34 Table 16.3.1 Parameter for Drilling Selection............................................................... 36 Table 16.3.2 Number of Drilling Selected ..................................................................... 37 Table 18.1 Distances between infrastructures ........................................................... 45 1. SUMMARY The present work aims to show a conceptual study of the Maranta mining project, in order to analyze its feasibility. Based on data provided by the teachers in charge of the course, data from exploration drills and their subsequent analysis using the Mineplansoftware, with which we were able toperform different types of calculations, from the estimation and clocation of the reserve to its economic evaluation . The resources and reserves of the Cu and Mo project were estimated, resulting in a total of 676 Mt of resources. For the calculation of our reserves we define our cut-off law (NSR cut off = 37.04 $ / t) resulting in proven and probable reserves 639 Mt with average laws of 0.58% Cu and 0.06% Mo. From the model of resources and reserves, the mining phases were defined according to the pit by well analysis, obtaining an optimal final well marked by a minimum profitability, Sale of well 50 in 4 stages. Subsequently, the production plan was obtained with a plant capacity of 184 416 tons / day for 13 years. Finally, an economic analysis of the project was conducted, resulting in a NPV of 22.41 M US$ at a discount rate of 10%. 2. INTRODUCTION This report contemplates the technical-economic evaluation of the Maranta mining project on a conceptual level, an area explored for many years and currently owned by the company UNI S.A.C. This project is classified within the large mining sector due to a prospective production rate of 184 416 tpd,it is located in the region of Ica, approximately 405 km southeast of Lima, 40 km southwest of Nasca and 24 km northeast of the population center San Juan de Maranta, which consists of the exploitation of base metals such as Cu and Mo for 13 years obtaining Cu concentrate and Mo concentrate as a product. The overall objective of this evaluation process is to determine whether the project presents reasonable expectations of economic profitability, as well as to analyze the risk involved in the assumptions of our base case. The specific objectives are to establish an adequate strategy to carry out the evaluation of the project, to achieve an estimate of the resources that is as accurate as possible to reality even when we do not have all the information about the deposit, to justify the costs incurred in the process and the necessary investments, as well as to define the production schedule that can generate greater valuation and maintain an attractive NPV of the project. 15 The main works and studies carried out to reduce the risk included: an update of the metallurgical geomodel referred to in the BCM report, studies of stability and characteristics of tailings disposal, legal review of the Peruvian tax regime, update of the terms of commercialization and transport of concentrates, development of alternative execution approaches and associated capital costs, adjustment of operational plans and associated operating costs, an update of the project calendar. 3. DESCRIPTION AND LOCATION OF THE PROPERTY 3.1 Project Location The Maranta project is located about 405 km southeast of Lima within the province of Nazca, Department of Ica of the coastal strip of southern Peru. The project is located approximately 24 km north of the coastal city of San Juan de Maranta, and the city of Nazca, on the Pan-American Highway South. The geographical coordinates are approximately 15°08'S and 75°04'W its elevations range from 785 masl to 810 masl. The exact location is observed in Chart X Figure 3.1 Maranta Project Location 4. ACCESSIBILITY, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY. 4.1 Accessibility Access to the Project is by land and air, as explained below: ● By land, it is carried out through the South Pan-American Highway (PE-1S) to the detour to Maranta (PE-30) at km 488; continue along this detour to another detour signposted for the Project, by which you continue to the right on a flat road of approximately 3 km. ● By air from the airport of San Juan de Maranta (managed by the Peruvian Navy), from where you take the PE-30 route to the Panamericana Sur, to the detour signposted by the Project and continue to the left along the unpaved road of approximately 3 km. ● By air from the Maria Reiche airfield, located in Nazca, from where you take the Panamericana Sur at km 488 and continue along this detour to another detour signposted for the Project and continue to the right along the unpaved road of approximately 3 km. 4.2 Local Resources and Infrastructure In the small town of San Juan de Maranta there are some infrastructures, which were developed to support the large-scale exploitation of the Maranta mine deposit. The village of San Juan de Maranta has a population of approximately 15 933 inhabitants and is located about 24 km from the Maranta Project. The region can provide the basic goods, services, medical care and some accommodation to assist the project, as well as meet some manpower needs for the various phases of exploration and development projects. San Juan de Maranta and the Maranta mining operations are connected to the national electricity grid. There is no surface water in the project area; groundwater has been detected at a depth of 450 m at the Mina Maranta site. The water for the community of San Juan de Maranta is obtained from the Jahuay aquifer located 19.6 km from the Maranta Mine Project and along the South Pan-American Highway. Cell phone coverage is available on a limited basis in the Project area, but the network is expanding. Communications will be made via satellite telephone. 4.3 Physiography 4.3.1 Flora We identified 22 species of flowers distributed in 18 genera, 11 families and two upper taxa (Magnoliopsida and Liliopsida)(Table X). Magnolipsids (Dicotyledons) constitute the dominant group of flora, with 16 species (73% of the total) in 13 genera and 10 families. The families with the greatest richness were Bromeliaceae and Cactaceae Asteraceae with three species each; followed by the families Asteraceae and Nolanaceae with two species each. Superior Taxa Family Number of Genders Magnoliopside Amaranthaceae 1 Magnoliopside Asteraceae 2 Magnoliopside Bromeliaceae 3 Magnoliopside Cactaceae 3 Magnoliopside Caryophyllaceae 1 Magnoliopside Krameriaceae 1 Magnoliopside Malvaceae 1 Liliopsida Poaceae 6 Table 4.3.1. Flower species found in the project area. 4.3.2 Fauna Four species of mammals were recorded in the project area, of which; three species are medium and large mammals(Lycalopex griseus, Lycalopex culpaeus and Lama guanicoe)belonging to twotaxonomic orders, and the Lima Eared Mouse Phyllotis limatus (Table X). The rodent species, Phyllotis limatus is a species that is distributed throughout the Coastal Desert of Peru and Chile, no species of small flying mammals were found in the habitats evaluated. Order Family Species Common name Carnivora Canidae Lycalopex culpaeus Colorado Fox Carnivora Canidae Lycalopex griseus Gray Fox Cetartiodactyla Camelidae Lama guanicoe Guanaco Rodentia Cricetidae Phyllotis limatus Mouse Orejón de Lima Table 4.3.2 Species of animals found in the project area 5. CLIMATE The Maranta project area is located in a desert area within the Peruvian coastal belt. The area has an arid climate with strong prevailing winds from the south during the day, which change to north winds at night, this type of climate covers most of the Peruvian coast and covers the provinces of Chincha, Pisco, Ica and Nasca. Annual rainfall ranges from 0 mm to 80 mm, with an average of about 27 mm. The average annual temperature is about 19°C. Monthly maximum temperatures range from 22°C to 28°C and average monthly minimum temperatures range from 15°C to 26°C. Relative humidity usually ranges from 65% to 85%. During the winter months, from June to August, thick fogs or "mists" are common. 5.1 Air Temperature The multi-year average temperature reached values of 16.6°C. The highest average values occur in the months of February and March, reaching temperatures of 21.1ºC and 20.6ºC, respectively. The maximum monthly average temperature is recorded in the month of March reaching the value of 28.5ºC; the average annual maximum temperature is 26.7ºC. The average monthly minimum temperatures are presented in the month of August with a value of 8.1 ° C, the average annual minimum temperature is 11.2 ° C. Historical monthly and annual consolidated records are presented in Graph X Graph X shows the monthly variation of the Maximum, Average and Minimum air temperature. 6. HISTORY The company that owns the Maranta project is UNI SAC. Which has all the surface rights, the same that have been acquired by the Public Deed of Constitution Contract dated May 26, 2011 and in force to date. The company UNI SAC contracts the Shangchi Mining Company for the execution of the exploration activity. The company Shangchi Mining has as its main objective of the program, the drilling, exploration and definition of resources in the Maranta Mine Project including a regional exploration program of geological mapping, surface sampling and geophysical studies. 7. GEOLOGICAL FRAMEWORK AND MINERALIZATION 7.1 Geological Environment The Maranta Project is located in the Department of Ica in the Coastal Belt of Peru. This northwesterly trending linear belt represents the westernmost part of the Central Andes Mountain Range, where the Nazca Plate subducts beneath the South American Plate, forming an active continental margin along the Peru-Chile Trench. 7.2 Regional Geology The geology of the Marcona District consists of a high-grade Precambrian metamorphic basement (Arequipa Massif), discordantly superimposed by neoproterozoic and Phanerozoicsedimentary rocks. Paleozoic sediments (the Marcona Ordovician Formation) are home to most of the economic deposits of copper and molybdenum at the Matarantamine. Rocks of monzogranite,granodiorite and gabrodiorite from the postkinematic batholith of St. Nicholas (dated to approximately 425 Ma) intrude the pre-Mesozoic rocks. Premesozoic rocks are discordantly superimposed by a series of volcanic-sedimentary and volcanoplutonic arc sequences that vary in age from the late Triassic to the Holocene. Sedimentary volcanic rock sequences are engulfed by porphyry andesite dikes, thresholds and plugs of the Tunga Andesite (also called "Ocoite"); and, in the eastern parts of the district, by granitoid plutons of the coastal batholith of approximately 109 Ma. The shallow water marine sediments of the Tertiary era and the quaternary marine terraces overlap in a non-conforming way to the succession of the volcanic-plutonic arc. 8. TYPE OF DEPOSIT The copper and molybdenum deposits at the Maranta mine were part of a large iron-rich hydrothermal system formed in an extensional environment along a continental margin related to subduction. Recent work (Chen, 2008) suggests that the Maranta prospect is significantly younger (approximately 104-95 Ma) and geochemically distinct from the Marcona iron deposit (approximately 162-156 Ma). The Maranta prospect is now interpreted as a hydrothermal deposit that was formed by the incursion of exotic brines and probably of evaporitic origin that were ejected from an adjacent sedimentary basin. 9. EXPLORATION Shangchi mining began exploration activities at the Maranta property in 2013, initially under the terms of an option agreement with Rio Tinto and since 2019, as sole proprietors. The first exploration activities include geological surface mapping over the entire concession area (an area of approximately 4.5 x 7 km), detailed lithological, alteration and structural mapping over the 1:2500 scale deposit area, trench excavation, terrestrial geophysical studies (induced polarization and magnetism) and core drilling. Since 2013, Shangchi mining has drilled 138 exploration wells at the Maranta Project, totaling approximately 34513 meters. In 2017, six additional wells (a total of 906.0 m) were drilled in Maranta to obtain specific material for metallurgical testing work. This additional core was also analyzed for the presence of molybdenum and copper, and the results were added to the project database to update the resource estimate. 10. DRILLING Since 2013, 138 wells drilled in the Maranta project with a total length of 35419 meters, with a minimum spacing of 1200 meters with diamond drilling methods using MD 6250, the holes are perpendicular to the mineralization, several holes were also made from the same point to reduce the impact of the surface and obtain the necessary drilling coverage, in the case of lower slope areas, the spacing was 25 meters. Figure 10.1. Drills 11. SAFETY, PREPARATION AND ANALYSIS OF SAMPLES Samples of diamond cores are collected and placed in weatherproof plastic and cardboard boxes. on the drilling rig by the drilling rig and transported by vehicle to the Project camp, where the core preparation facilities are located. BCM geologists photograph the core as it is received from the platform and collect geotechnical information (rock quality designation [RQD]) and core recovery before selecting sample intervals for division. Test samples, usually 2 m in length, are selected by the geologist BCM at the site and divided using a manual core separator. Half of the sampled core is 22 returned to the box for geological record, and the other half is packaged and labeled with a blind sample number assigned by BCM. BCM geologists collect samples from trench channels dug by hand with a hammer and chisel. Trenches are dug by hand to remove overload and expose a clean surface of the bedrock on the trench floor. Figure 11.1. Drilling samples The samples are prepared in Arequipa and then sent to theALS-Chemex laboratory in Lima for analysis. The chain of custody is documented throughout the transport process. Samples are prepared according to the preparation code ALS-Chemex PREP-31, which implies the following: ● The sample is dried at 110° to 120°C and crushed with a 70% jaw and roller crusher. ● 2 mm (approximately mesh #10) ● A subsample of 250 g is obtained using a riffledivider. ● The division is sprayed with an 85% ring and disc sprayer passing 75 microns(μm) ● Thick rejects are returned to BCM. 12. MINERAL PROCESSING AND METALLURGICAL TEST The exploitation of the deposit will be carried out by the open pit method and the processing of the minerals will be by conventional flotation, obtaining copper-molybdenum in concentrates. In 2019 and 2020 additional metallurgical tests were performed on 12 samples from 9 wells (6 of which were new, as described above) drilled in the East wells, to also optimize the well-known leaching test conditions and plant testing. The selected samples reasonably cover the entire ore deposit and include ore with some degree of oxidation and mineral with low sulfur content. The information obtained validated and improved the recovery formulas, providing confidence in the production schedule of Life of Mine. This test work confirmed that marketable grade molybdenum and copper concentrates can be produced using the processing parameters selected for process plant design. 13. TRANSPORT AND MARKETING OF CONCENTRATE Copper concentrate containing approximately 8% moisture will be transported in standard size, sealed and coated containers from the plant to the port of Maranta, approximately 632 km from the site. It is estimated that 14 trucks per day of copper concentrate will be shipped during years 1 to 3. of the life of the mine, after which shipments will be reduced to 10 trucks per day. Molybdenum concentrate containing about 8% moisture will be shipped in bulk from the site to the bulk container port in Ica. Approximately 9 copper trucks will be shipped per day, during the first three years of mine life and around 5 trucks per day for the rest of life. 14.ESTIMATION OF MINERAL RESOURCES Resource estimation is considered an iterative process that begins with the exploration and compilation of geological data; Next, the geological domains are defined to make the reservoir modeling and the interpolation or grade estimation. Subsequently, for the calculation of reserves, the mining factors of the JORC code are considered. The main objective of the process is the adequate estimation of the grade and tonnage of the block model, which will depend on the quality, quantity and distribution of the holes produced and the degree of continuity of the mineralization that has been respected and maintained with the reality of the Deposit. 14.1 Database Drilling on the Maranta project has been under the control of BCM. All drilling was done by diamond core methods that produced a2.5 inch HQ core. The project coordinates are represented in Table 14.1.1 Coordinate Minimum Maximum Block Size Easting 2000 3500 10 Northing 4500 6000 10 Elevation 2000 2800 10 Table 14.1.1. Project limits and block dimensions The database is made up of 138 diamond drill holes demarcated by the area where there is an acceptable concentration of drill holes, with 24973 test intervals totaling 35 419 meters drilled, which contain the important metals of the project (Cu and Mo). Table 14.2. 2. #DDH Input 138 Minimum perforated length 23 meters Maximum perforated length 600 meters Total meters drilled 35419 meters Table 14.1.2. Maranta project database. 14.2 Geological interpretation and modeling. The deposit is described as a copper porphyry with high mineralization of copper and molybdenum of disseminated mineralization and in stockwork-type veinlets. The geological solids for this project were made based on the lithology encoded in the diamond drill holes. With this we can deduce that the estimation domain will be by lithology associated with mineralization limits. Figure 14.2.1. Longitudinal view of wireframe 14.3 Exploratory Data Analysis (EDA). The statistics of the assays, histograms of metal grades, correlation graphs, distribution of populations, measures of central tendency (mean, mode) or dispersion (standard deviation) are made. A summary is shown in Tables 14.3.1 CU-ROCK1 CU-ROCK2 CU-ROCK3 CU-ROCK4 Valid Data 3902 4742 3175 386 Total Data 3902 4742 3175 386 Minimum 0.05 0.02 0.01 0.01 Maximum 3.33 0.89 1.22 0.29 Mean 0.986 0.391 0.102 0.081 Variance 0.135 0.015 0.006 0.003 Standard Deviation 0.367 0.122 0.075 0.057 Coefficient of Variation 0.373 0.311 0.737 0.709 Table 14.3.1. Descriptive statistics applied to data. 14.3.1. Descriptive statistics Histograms to obtain descriptive statistics and analyze the variability of the laws, the presence of populations and possible outliers. 14.3.1.1 Descriptive statistics of the data for lithology 1. To. Statistical analysis for Cu Static Pb Minimum 0.05 Maximum 3.33 Mean 0.135 STD 0.367 CV 0.373 B. Statistical analysis for Mo Static Mo Minimum 0.001 Maximum 0.998 Mean 0.106 STD 0.006 CV 0.077 14.3.1.2 Descriptive statistics of the data for lithology 2. A. Statistical analysis for Cu Static Pb Minimum 0.02 Maximum 0.89 Mean 0.391 STD 0.015 CV 0.311 B.Statistical analysis for Mo Static Mo Minimum 0.001 Maximum 0.663 Mean 0.052 STD 0.049 CV 0.939 14.3.2. Correlation between metals A bivariate analysis is performed between the metals of importance, to understand the behavior of the grade of one metal with respect to the grade of another metal. COEF. CORRELATION Litho1 0.302 Litho2 0.167 14.4 Compositing When compositing, it must be considered that the size of the composite must be larger than the average of the length of the assay intervals; the compositing should not change the average grade of the assays, maximum by 5%; and the compositing should not change the sum of the metal content (length x grade), maximum by 5%. CU-ROCK1 CU-ROCK2 CU-ROCK3 CU-ROCK4 Valid Data 3902 4742 3175 386 Total Data 3902 4742 3175 386 Minimum 0.05 0.02 0.01 0.01 Maximum 3.33 0.89 1.22 0.29 Mean 0.986 0.391 0.102 0.081 Variance 0.135 0.015 0.006 0.003 Standard Deviation 0.367 0.122 0.075 0.057 Coefficient of Variation 0.373 0.311 0.737 0.709 Table 14.4.1. 2- Meter composite. Figure 14.4.2. Q-Q Plot of 2-meter composite Cu. Considering the amount of data, the variation of averages and the graphs with respect to the tests, the compost length to be chosen is 2 meters. 14.5 Variography Parameters HORIZONTAL VERTICAL ANGLE BEGINNING 0° 0° ANGLE INCREMENT 30° 30° WINDOWING ANGLE 18° 15° NUMBER OF ANGLES 6 4 Table 14.5.1. Angular parameters. PARAMETERS LAG DISTANCE 80 NUMBER OF LAGS 10 LAG DISTANCE TOLERANCE 0 Table 14.5.2. Distance parameters. Experimental variograms are obtained from the 2-meter composited data, including the parameters in Tables 14.5.1 and 14.5.2. Variograms for Cu Figure 14.5.1. Spherical variogram and experimental variogram for Cu in lithology 1. Figure 14.6.2. Spherical variogram and experimental variogram for Cu in lithology 2 14.7Block Model The block model is the discretization of the geological solid obtained in the modeling. The dimensions of the block used in the model is 10x10x10 meters. Figure 14.7.1. Plan view of the block model representing lithology. 15. CALCULATION OF MINING RESERVES 15.1 Pit optimization The analysis by the Lerchs Grossman algorithm was performed using the Minesight software. The Net Smelter Return (NSR) and the values of each block calculated in the software were used.The NSR includes income payable less costs to sell, including treatment and refining expenses. The values of the block consider the operating costs of extraction, processing and general and administrative expenses. In addition, metal prices, average cost of inputs, a recovery model by rock type, with a constant slope angle of 45 ° are used to produce a theoretical maximum pit containing the highest possible net economic value. For our present evaluation of the project at the conceptual level, we have considered the following optimization parameters. METAL MO METAL PRICE LOM 7700 UNIDAD $/tonnes CU 33000 $/tonnes Unit Operating cost Mining Cost ore 2 Mining Cost waste 1.8 Processing-Mill 4.67 Processing-Leach 5.1 G&A Cost 1.2 Production Oxides Mixed Metal Copper Copper Molybdenum Likewise, the commercial terms were defined $/t mined $/t mined $/t processed $/t processed $/t processed Recovery 85.00% 85.00% 65.00% Metal payments Payable Copper-Mill Payable Copper-Leach Payable Molybdenum-Mill Treatment factors Copper Concentrate Copper Grade Moisture Treatment Charge Refining Charge Cu Trucking and port 95% 95% 60% 30% 8% 80$/dmt 0.08$/lb 180 $/wmt Cu This provides us with the following graph, which describes the amount of ore and waste to be extracted in each pit generated, with their respective net value. Carrying out the pit by pit analysis,we define the mining phases. 15.2 Pit by Pit This provides us with the following graph, which describes the amount of ore and waste to be extracted in each pit generated, with their respective net value. Performing the pit by pit analysis we define the mining phases. Phase/Code Factor Pit 1 (5) Pit 2 (6) Pit 3 (7) Pit 4 (8) Pit 5 (9) Pit 6 (10) Pit 7 (11) Pit 8 (12) Pit 9 (13) Pit 10 (14) Pit 11 (15) Pit 12 (16) 0.05 0.06 0.07 0.08 0.09 0.10 0.11 0.12 0.13 0.14 0.15 0.16 NPV MUSD 6.37 18.03 27.33 36.33 106.89 206.49 382.42 946.85 1,154.92 1,357.21 1,543.01 1,872.74 Profit MUSD 6.68 19.03 29.02 38.77 116.29 226.92 424.43 1,062.96 1,301.83 1,536.57 1,754.46 2,145.67 Revenue MUSD 0.23 0.73 1.20 1.75 5.99 13.73 29.43 82.86 104.56 127.78 150.78 195.47 Processing Cost MUSD 0.07 0.27 0.49 0.70 3.41 6.71 12.58 33.25 42.35 51.58 60.68 77.47 Mining Cost Total Ore MUSD MTONNES 0.04 0.04 0.14 0.12 0.25 0.19 0.36 0.28 1.79 0.96 3.48 2.21 6.46 4.76 16.98 13.39 21.65 16.90 26.36 20.67 31.00 24.40 39.52 31.68 Pit 13 (17) 0.17 3,259.54 3,814.36 Pit 14 (18) 0.18 6,882.20 8,215.01 Pit 15 (19) 0.19 13,474.49 16,324.91 Pit 16 (20) 0.20 17,296.09 21,077.03 Pit 17 (21) 0.21 18,048.51 22,026.85 Pit 18 (22) 0.22 18,686.78 22,843.62 Pit 19 (23) 0.23 19,296.69 23,634.48 Pit 20 (24) 0.24 19,759.38 24,242.73 Pit 21 (25) 0.25 20,172.18 24,795.42 Pit 22 (26) 0.26 20,814.47 25,663.34 Pit 23 (27) 0.27 21,035.15 25,964.91 Pit 24 (28) 0.28 21,250.04 26,262.91 Pit 25 (29) 0.29 21,462.99 26,561.95 Pit 26 (30) 0.30 21,604.81 26,764.68 Pit 27 (31) 0.31 21,742.56 26,963.87 Pit 28 (32) 0.32 21,854.93 27,128.94 Pit 29 (33) 0.33 21,917.47 27,222.17 Pit 30 (34) 0.34 22,024.97 27,384.80 Pit 31 (35) 0.35 22,074.64 27,461.08 Pit 32 (36) 0.36 22,157.21 27,589.46 Pit 33 (37) 0.37 22,186.33 27,635.37 Pit 34 (38) 0.38 22,241.45 27,723.62 Pit 35 (39) 0.39 22,272.46 27,774.19 Pit 36 (40) 0.40 22,316.23 27,846.59 Pit 37 (41) 0.41 22,333.60 27,875.70 Pit 38 (42) 0.42 22,351.84 27,907.03 Pit 39 (43) 0.43 22,365.48 27,930.71 Pit 40 (44) 0.44 22,382.39 27,960.75 Pit 41 (45) 0.45 22,388.42 27,971.59 Pit 42 (46) 0.46 22,397.70 27,988.67 Pit 43 (47) 0.47 22,403.47 27,999.46 Pit 44 (48) 0.48 22,414.95 28,021.29 Pit 45 (49) 0.49 22,421.42 28,033.95 Pit 46 (50) 0.50 22,430.06 28,051.08 Pit 47 (51) 0.51 22,433.79 28,058.64 Pit 48 (52) 0.52 22,434.34 28,059.79 Pit 49 (53) 53.00% 22,439.65 28,071.00 Pit 50 (54) 54.00% 22,440.92 28,073.76 Pit 51 (55) 55.00% 22,447.04 28,087.17 398.45 946.82 1,978.92 2,585.83 2,709.69 2,821.70 2,935.99 3,024.12 3,109.44 3,243.59 3,290.27 3,337.16 3,386.29 3,419.88 3,452.64 3,479.22 3,494.47 3,521.87 3,534.48 3,555.86 3,563.60 3,578.05 3,586.81 3,598.87 3,603.28 3,608.22 3,611.86 3,616.64 3,618.28 3,620.94 3,622.56 3,626.01 3,627.90 3,630.44 3,631.63 3,631.79 3,633.73 3,634.10 3,636.14 156.37 385.99 871.50 1,195.12 1,268.65 1,335.14 1,401.81 1,459.24 1,513.80 1,605.28 1,639.50 1,675.71 1,712.67 1,739.99 1,768.66 1,794.79 1,810.23 1,837.96 1,851.96 1,876.39 1,885.44 1,904.11 1,914.91 1,931.49 1,938.81 1,946.97 1,953.38 1,961.72 1,964.89 1,970.02 1,973.43 1,980.33 1,984.63 1,990.57 1,993.22 1,993.66 1,997.62 1,998.74 2,003.99 79.65 197.12 447.89 616.54 655.10 689.95 724.81 754.98 783.63 831.90 850.00 869.21 888.79 903.31 918.61 932.61 940.87 955.75 963.29 976.44 981.32 991.41 997.23 1,006.21 1,010.18 1,014.61 1,018.09 1,022.62 1,024.35 1,027.15 1,029.00 1,032.76 1,035.11 1,038.36 1,039.81 1,040.05 1,042.21 1,042.82 1,045.69 64.97 155.78 326.34 426.54 447.10 465.79 484.91 499.72 514.11 536.81 544.70 552.63 560.96 566.64 572.20 576.70 579.29 583.93 586.07 589.70 591.01 593.46 594.95 597.00 597.75 598.59 599.20 600.01 600.29 600.74 601.01 601.60 601.92 602.35 602.55 602.58 602.91 602.97 603.32 Figure 15.2.1 Pit by Pit Analysis 15.3Cut off To estimate the reserves of the project we are based on economic criteria defined by the cutofflaw. Due to the polymetallic deposit, the proposed cut-off grade is ($ / t), which is determined as follows: 𝑁𝑆𝑅𝑐 = (𝑀𝑜 + 𝑃𝑜 + 𝑂𝑜) − (𝑀𝑤 + 𝑃𝑤 + 𝑂𝑤) Mo: Mining cost per metric ton of ore Po: Processing cost per metric ton processed Oo: General cost per metric ton processed Mw: Mining cost per metric ton of waste According to the parameters considered, we obtain The cut-off NSR for Milling = 39.9 $ / tonnes The cut-off NSR for Leach =37.04 $/tonnes Metal Factor-VALOR PUNTO Cobre-Mill Cobre-Leach Mo-Mill 56.34 $/t- %Cu 63.86 $/t-%Cu 120.33 $/t-%Mo Table 15.3.1. Point Values 16.Mine Design For this, the mining equipment must have been previously selected. These roads constitute the route for transporting ore and waste rockfrom the active extraction areas to the upper Edge of the pit. The operational design is affected by the current trend of deeper mines, which increases the transport distance; and economies of scale, which affect team size. The possible effects of both factors are decrease in the useful life of trucks and their tires, loss of productivity, poor driving quality, and excessive generation of airborne dust. These aforementioned effects translate into high maintenance costs (of equipment and roads) and loss of safety in the operation. An open pit mine requires coordinating the execution of its daily productive activities with theexecution of construction activities and access ramps, which must satisfy the following restrictions(Vásquez, Galdames, & LeFeaux, 2007; Atkinson, 1992): Allow free, safe and timely access to a specific area, in accordance with the production schedule. This task is not so simple, especially in conditions in which various activities are carried out in the same sector, so its planning should generate the least negative impact on the rest of the operation. Comply with the geometric restrictions of the equipment and transport activities, in order to guarantee that the equipment that circulates on the ramps does so in safe conditions for its operation and avoiding its premature deterioration. Comply with the geomechanical restrictions of the sector since it must be exempt from any risk of instability in the mine. Allow the extraction of all material related to the sector. Allow parallel activities to be carried out with complete safety. A good design of the geometry of a ramp must comply with all the geometric specifications imposed by geotechnics and, in addition, deliver the greatest possible economic benefit (Thompson R. 2011), contained in the reserves of the pit design with ramp. This geometric arrangement must consider: the economic scenario with which the optimal final pit is evaluated, the equipment that transits the ramp, the mining plan, the pit area, and the deposit area. For the selection of phases, the 50-pit run was made, of which Pit 19,22,25 and 34 were chosen. Figure 16.1 Mining sequencing Pit 34 was taken as the final pit, which gave us as a result. The geometric components of the mining slope are presented in the following table: Ángulo OVERALL 45° Ángulo de BFA 70° Berma 6.1 metros altura de banco 10 metros Table 16.3 Geometric Parameters For the design of the ramp, the following considerations are taken, adding that the slope of theramp is 12%, obtaining a design ramp width of 29 meters. Table 16.4. Ramp width calculation. 16.1 Mineral Reserves The mineral reserves of the project consider only categories of measured and indicated resources, which have been converted to the categories of proven and probable reserves, respectively. Mineral Reserves are defined as the material that will be fed to the process plant in the mine plan already described and have proven to be economically viable. RESERVES MTONNES CU% MO% PROVEN 420.370 0.48 0.06 PROBABLES 218.414 0.65 0.08 PROVEN+PROBABLE 638.784 0.59 0.07 Table 16.1.1. Proven and probable mineral reserves 16.2Mining Method 16.2.1Production rate and sizing Determine the preliminary production rate, in a range of 20 mtonnes / year, according to the preliminary production plan año1 año2 año3 año4 año5 año6 año7 año8 año9 año10 año11 año12 año13 ore Mtonnes waste Mtonnes 20.39 12.46 21.34 17.50 22.08 7.01 20.30 11.00 21.14 32.65 22.56 8.61 22.86 11.25 23.53 10.76 21.36 33.13 21.17 45.35 22.31 12.45 21.44 49.34 20.34 33.21 Cu 0.79 0.57 0.78 0.51 0.32 0.77 0.67 0.6 0.31 0.39 0.57 0.45 0.39 Table 16.2.1.Preliminary Plan Production Mo 0.09 0.07 0.09 0.1 0.04 0.1 0.09 0.08 0.04 0.06 0.06 0.05 0.07 Figure 16.2.1Preliminary Plan Prodution 16.3 Calculation of equipment numbers 16.3.1 Drilling Calculation The selected model is MODELO CAT: MD6250 Figure 16.3.1 Drilling Machine Table 16.3.1 Parameter for Drilling Selection Table 16.3.2 Number of Drilling Selected 17. RECOVERY METHODS 17.1 Plant Design Two plants have been designed to treat minerals, namely: • Leaching plant that treats oxide ore to produce copper cathodes. • Flotation plant for the treatment of sulphur minerals to produce copper and molybdenum concentrates. 17.1.1 Oxide ore plant The project uses sulfuric acid leaching to extract copper from oxide ore. The leached copper is purified and improved by SX to provide a rich electrolyte to the EW plant, which produces copper cathodes. Feed for the leaching process is prepared by crushing and sieving. The flowchart of the oxide ore process is shown in Figure X. The flowchart comprises: 17.1.2 Four-stage crushing circuit The ore is delivered by mining trucks that are dumped directly into the ROM container. A reserve of coarse ore provides augmentation capacity between the primary and secondary crushing stages to account for mine transport cycles and maintenance requirements. The dust generated throughout the crushing plant is controlled by a combination of dust suppression and dust collection systems. The tip of the truck is closed on three sides and wetting sprinklers have been included to remove dust. 17.1.3 Tub leaching The crushed ore is extracted from the fine ore deposit and sprayed with dilute sulfuric acid as it passes from one discharge conveyor to another to promote leaching. The acidified ore is transported by a conveyor to be loaded into leaching tanks. The acidified mineral is loaded into a tub by a trigger conveyor until the tub is filled, leaving 300 mm of freeboard in the tub. The tank is then flooded with a dilute solution of sulfuric acid that is introduced through the base of the tank, under a filtration bed. The solution overflows from the top of the tub into a laundry room from which the solution is channeled to the next tub or storage pond. At the end of the leaching cycle, the remaining solution is drained from the tub and the wet residual solids ("gravel") are removed by a shell spoon, placed in a hopper and discharged into a transport system for transfer to the gravel dump. Solution management is designed as a countercurrent system to maximize the copper content of the leaching solution prior to treatment at the SX/EW plant. The PLS is clarified and then stored in a covered retention pond before being pumped into the SX circuit. 17.1.4 Clarification Fixed-bed clarifiers have been specified due to their proven performance in fine removal from copper leaching solutions. The clarified PLS solution gravitates towards the PLS pond, and the solids from the lower flow of the clarifier are pumped into the vats. 17.1.5 Solution ponds The PLS pond is covered to reduce evaporation and prevent the collection of windblown solids. The refining pond is not covered and also serves as an emergency reservoir in case one of the tubs drains by accident or intentionally in an emergency. 17.1.6 Gravel The gravel that remains after the leaching stage is removed from the vat by a unloading crane The shell discharges the gravel into a hopper that feeds the gravel receiving conveyor. This material is then transported to the gravel area via three unloading conveyors. The last gravel conveyor feeds a container, from which haulage trucks are loaded for final disposal at the adjacent gravel dump 17.1.7 Solvent Extraction (SX) The SX process involves the selective extraction of copper from the relatively diluted PLS to produce a high-purity, high-tenor copper sulfate solution suitable for the EW process. The SX system is composed of a single train that includes two sedimentator extraction mixers that treat the PLS. These are in series with a loaded organic wash mixer settler and then an extraction mixer-settler, which produces the electrolyte-rich feed for electrodeposition. 17.1.8 Electrodeposition (EW) The copper EW circuit uses permanent cathode technology to produce LME Grade A cathode copper. EW is realized using a total of 122 cells at a rated current density of 320 A/m2. Copper plating is continuous for a period of six days before the cathodes are removed and processed for shipment. The copper-rich electrolyte ("strong electrolyte") passes into the EW circuit where the copper is recovered in the form of copper cathodes. The electrolyte that has been depleted of copper during the EW process, ("spent electrolyte"), is recycled to the strip stage in the SX circuit. 17.1.9 Reagents Sulphuric acid Flocculant Extractant Diluent Guar Cobalt sulphate 17.1.10 Services Raw water Fire water Drinking water Plant air and instrumentation Figure 17.1. Oxide ore Process Flowchart 17.1.11 Sulphide ore plant The main products of the concentrator plant are copper concentrate and molybdenum concentrate. The areas involved are: primary crushing, stockpile and recovery, copper grinding, flotation, whirlpooling, thickeners, concentrators, filters, tailings thickeners, molybdenum plant, reagents, services and pools and runoff. The tailings are pumped to the tailings reservoir for storage and the water returns through a pipe parallel to the processing plant to be reused. Figure 17.1.11. Flowchart of the sulfur minerals process. 17.1.12 Primary crushing A 63" x 118" rotating crusher receives a ROM up to 1 m in size and reduces it to less than 125 mm. A variable-speed belt feeder delivers the ore from the crusher chamber to the coarse ore pile feed conveyor. 17.1.13 Storage and recovery system for crushed ore The grinding circuit requires two SAG mill feed conveyors. The double (almost parallel) recovery chambers are used to house a total of four platform feeders that extract the ore from the crushed ore pile to the SAG mill feed conveyors. 17.1.14 Grinding The grinding circuit consists of two mill trains, each train identical, treating 1875 t / h. Each train consists of a single FLSmidth semi-autogenous crushing mill (SAG), a ball mill, and a possible addition of a pebble crusher (SABC). The ball mills operate in a closed circuit with a cyclonic group FLSmidth (Krebbs)to produce a product of the grinding circuit of 80% passing up to 130 μm. 17.1.15 BULK flotation of CU-MO The function of the copper flotation area is to recover copper and molybdenum in a bulk concentrate, while rejecting the coarse sulfide-free bargain for the rougher tailings and rejecting the zinc, lead and iron sulfides for the drain of cleansing tailings. 17.1.16 Molybdenum separation The function of the molybdenum flotation area is to recover the molybdenum in a molybdenum concentrate and reject the copper in the tailings as a copper concentrate. The stages of molybdenum flotation are: rougher cleaners, from the 1st to the 5th stage and cleaners 17.1.17 Spacing and filtration of copper concentrate 17.1.18 Storage and loading of copper concentrate After filtering, the copper concentrate is transferred to a copper concentrate product storage stack using a front loader inside the copper concentrate and loading building. 18. INFRASTRUCTURE 18.1 General Infrastructure The distance between the pit and the mine is an important point that must be taken into account for infrastructure design. The distance it must have is 500 m or 1 km maximum between the limits of the Pad and the pit, beyond that an evaluation has to be made if it is profitable for them to transport the ore to the Pad. The distance should be as close as possible between the pit and the plant to avoid transportation costs and installation of equipment. The solution collection pool and the electro solvent plant are usually as close to the Pad as possible and at the lowest level. Their goal is to accumulate all casualties. Their goal is to accumulate all the draining solutions that flow from the Pad gravitationally. The camp or other commonly used infrastructure is located away from the pit for safety reasons. INFRASTRUCTURE DISTANCE (m) TAGUS DUMP 498.25 DUMP TAILINGS 1975.19 TAGUS PAD 387.05 PLANT TAILINGS 1285.87 TAGUS PLANT 1000 PLANT CAMP 2127.88 PAD ELECTR PLANT. SOLV. 120 Table 18.1 Distances between infrastructures 18.1.1 Track Gauge During primary extraction, a safety bank is left on each level. The width varies with the height of the bench. Generally the width of the safety bank is on the order of 2/3 of the height of the bench. At the end of the mine's life, safety benches are sometimes reduced in width to about 1/3 of the height of the bench. A common bench height in large open pits is 50 feet (15 m). For smaller wells, the value is 40 feet (12 m). For small gold deposits, a typical value is 25 feet (7.5 m). The height of the bench must match the loading equipment. When using shovels, the height of the bench should be within the maximum excavation height. Normally, the battery has a height greater than or equal to the radius of the tire. The slope of the berm is considered approximately 35◦ (the angle of repose), this is observed in the figure below. Figure 18.1.1 Typical Track Section 18.1.2 Tailings Design The method that offers better safety is the Downstream Construction Method, which consists of depositing the coarse part of the tailings (sands) in such a way that, both in the wall and in the crowning, it allows to grow downwards of the work, giving this greater sustenance, and leaning on the sands previously deposited; this, accompanied by adequate compaction, offers greater physical stability. Design considerations: ● Location of the area for the tailings deposit ● Geological characterization of the area ● Climatic and hydrological conditions of the tailings deposit site area. ● Seismic conditions of the project area ● Determination of geotechnical conditions. ● Selection of the type of dam ● Metallurgical balance ● Granulometric characteristics of the general tailings Main factors for the location of the tailings dam: ● Total site storage capacity and expansion potential. ● Maximum distance to the plant and the corresponding approximate length of the tailings pipeline Difference in elevation between the reservoir and the plant ● Dam volume required to retain overflow tailings produced ● Relationship between the maximum capacity of the tailings reservoir and the volume of the dam, which is called the Storage Ratio. 18.2 Water Management Due to the peculiar geographical configuration of the Nasca Plate, there is no hydrographic basin that provides surface water to the Project, nor to the district of Maranta. Taking into consideration the distances that exist with surface resources. The nearest freshwater source is in the Quebrada Jahuay aquifer, at a distance of 38 km east of San Juan de Maranta and 19.6 km from the project, in the Arequipa province of Carabela. Water for population use is extracted from this aquifer, which is diverted to the town of Maranta through a pipeline operated by Shanchi SAC. The pumping of the Maranta well field should not adversely affect the Shanschi SAC/Maranta field, located 9.6 km south of the Project well. Therefore, the Alto Jahuay aquifer is the preferred source, in view of its relative proximity, its better water quality and less potential for interference with other users. 18.3 Electricity Management The Maranta project has a long-term power supply agreement with a generator that will deliver power to the distribution grid operated by Red de Energía del Perú S.A (ISA REP). ISA REP launched the country's first 500,000-volt transmission line, the Chilca – La Planicie – Zapallal project, marking a milestone in Peru's energy history. The project's electrical system has a 220 kV overhead line of 15 km supported by steel towers and will be connected to the grid on the 220 kV bus of the REP's Maranta substation. The 220 kV overhead power line ends in the plant's high-voltage shunting yard on the 220 kV bus. A 22.9 kV power line runs between the Jahuay drilling field and an intermediate pumping station. The line is supported by wooden poles. 18.4 Mine Closures The legislation on closure (Peruvian Law 28090) requires that every operation has an approved closure plan and financial guarantees of capacity to cover the estimated closing costs. The closure plan for the operation aims to ensure the physical and chemical stability of the various components of the project after closing, and to return the environment to a condition similar to that which was before the implementation of the Project. The main closure activities concern the reduction of landfill slopes, in order to ensure physical stability, and the coating of potentially acid-generating materials with inert material. The closure plan confirms the demolition of the infrastructure and the levelling of the areas involved. Finally, and depending on the requirements of government regulators and local communities, it is up to local communities, ownership of some of the infrastructure, e.g. the water pipe and/or the power transmission line, to be transferred to the community for use after closure. 18.5 Market and Contract Research The company conducted an analysis of copper and molybdenum prices and market conditions. The analysis includes a review of the current anticipated treatment of smelter and/or refinery charges and penalties, costs associated with handling concentrates, and shipping costs to potential customers. All information was obtained from public and underwriting sources, Metal prices were collected from the London Metal Exchange (LME). The information provided was used as a guide to develop all payments and expenses associated with the sale of MARANTA concentrates. 20. ENVIRONMENTAL STUDIES, SOCIAL IMPACT AND PERMITS 20.1 Legal Framework Peruvian legislation establishes that public or private investment projects that will be executed in the national territory and that are likely to cause significant environmental impacts of a negative nature, require the prior realization of an environmental impact assessment and the consequent approval of the environmental study that supports it, by the competent authority. This requirement extends to modifications, extensions or diversification of such projects, provided that they involve a change with respect to the original project that could generate new or greater negative environmental impacts. This study will be governed by Law No. 28611, General Law of the Environment; Law No. 27446, Law on the National System of Environmental Impact Assessment; Law No. 28090, Law Regulating the Closure of Mines; and by Law No. 27444, Law on General Administrative Procedure, as well as their respective regulatory, amending and complementary norms. The Ministry of Energy and Mines (MINEM), through the General Directorate of Mining Environmental Affairs (DGAAM), is competent to evaluate and approve or disapprove, as appropriate, environmental studies for the development of mining exploration activities. Ambit Regulator National Environmental Policy (Supreme Decree No. 012-2009- MINAM and other authorities MINAM) Environmental Regulations for Mining Exploration Activities MINEM (Supreme Decree No. 020-2008-EM). Regulations on Occupational Safety and Health and Other MINEM Complementary Measures in Mining (Supreme Decree No. 0552010-EM) Law on Water Resources (Law No. 29338), Regulation (Supreme ANNA Decree No. 001-2010-AG)and amendments Maximum Permissible Limits for the discharge of liquid effluents MINEM - MINAM from mining-metallurgical activities (Supreme Decree No. 0102010-MINAM) Regulations on Environmental Quality Standards for Air (Supreme MINAM Decree No. 074-2001-PCM) and updating of standards for lead (Supreme Decree No.069-2003-PCM) Regulations on the Classification of Land by Its Capacity for MINAGRI Greater Use (Supreme Decree No. 017-2009-AG) Forestry and Wildlife Act (Act No. 29763) MINAGRI Governments Law No. 30299, Law on Firearms, Ammunition, Explosives, SUCAMEC / Regional Pyrotechnic Products and Related Materials for Civilian Use Law on the Supervisory Agency for Investment in Energy and OSINERGMIN Mining - OSINERGMIN (Law No. 26734), Regulation (Supreme Decree No. 054-2001-PCM) and amendments 20.2. Environmental Obligations An Environmental and Social Impact Assessment (ESIA) is required to start mining activities. The EIAS is in the process of being completed and will be presented in the coming months. Assuming UNI SAC. decide to develop the Maranta Project, the process of obtaining the necessary construction and exploitation permits and other consents should continue, following the established path. Priority areas include the acquisition of water rights for the Jahuay aquifer, and the establishment of surface rights for the aqueduct and power lines. 20.3 Environmental Permits In the regulations, exploration activities are classified into the following categories: Category A: Activities that cause slight or no alteration to the surface. ● Does not require communicating to the MEM ● It does not cause greater alteration than the ordinary use of people outside the exploration Category B: They cause dumping and waste disposal is required. (a) A maximum of 20 drilling rigs b) An area effectively disturbed less than 10 hectares considering together these platforms, trenches, auxiliary facilities and accesses c) The construction of tunnels up to 50 meters in length, as a whole. ● Does not require communicating to the MEM Category C: They cause waste and waste disposal is required a) More than 20 drilling rigs b) An effectively disturbed area greater than 10 hectares considering in set of platforms, trenches, auxiliary installations and accesses c) The construction of tunnels of more than 50 meters in length, as a whole. ● Requires communicating to the MEM to start activity ● Introduces the MEM to an EA ● Citizen Participation The Maranta Mine exploration project received Category C. 20.4Socio-economic The Maranta project is located in an agricultural region, where grapes, cotton, asparagus, olives and other products are grown. The Ica region is also home to the main iron mine on the Pacific coast. The village of San Juan de Maranta has a population of approximately 15 933 inhabitants and is located about 24 km from the Maranta Project The population of Maranta does not have a drainage service inside their home. The data of the last census show that 75.74% of registered homes have a public drainage network within the same house, 8.44% of houses have a public drainage network, but outside the house and 12.71% of homes do not have this service. In the rest of the registered houses, septic tanks, blind or black wells and canal or ditch are used. It was recorded that 85.81% of the homes have electric lighting. The rest of the homes (14.16%) do not have this important service. The Maranta project will contribute to the local community through jobs, local purchases of goods, services and taxes. 20.4.1 New Technologies It is evaluated to opt for the change from Diesel to Green Hydrogen, which its name has been given by hydrogen generated from renewable sources. This compound (H2) is produced from water and renewable energy. Its importance lies in the energy it generates, which is three times greater than gasoline and, in addition, as a product of its use it does not generate greenhouse gases. In Ica we have the Port of Maranta that can be used for the export of hydrogen to other countries. A Peru LNG regasification plant is also located, which could generate supply for the production of H2. Green hydrogen: from the electrolysis of water Grey hydrogen: from natural gas reforming The change from diesel to Green Hydrogen is made because in the coming years it will have a highly competitive market and will lower costs being feasible the use, another point by which the change is made is due to its geography, since it has the Maranta port relatively close and a regasification plant that will be able to process green hydrogen.