Pasco project ground magnetics

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Pasco project ground magnetics Survey information Magnetic results Comments Conclusions General data information 13 June 2017 Piura Trujillo Lima Pasco Cusco Arequipa

Survey information General geographic information Latitude : 10.60988 o south Longitude : 75.96721 o west Altitude : 3391 to 4593 meters All products in WGS84 zone 18 south Geophysical surveys A ground magnetic survey was done by GC Ground on behalf of GPM Metals on the Pasco project in central Peru. The original magnetic file is called Chaska, and that name was maintained for the processed files. The geophysical work started on the 22 th of April and was finished by the 3 rd of May 2017. The survey line direction is north-south and a line spacing of 200 meters was maintained. Station spacing is 10 meters. Thirty one lines of varying length were completed for a total distance of 132.5 line kilometers. Geophysical processing The Pasco project/chaska magnetic dataset was provided as an ASCII format file. The file consists of local and UTM coordinates with a diurnally corrected total magnetic intensity column. The projection used during data acquisition is UTM zone 18 south, WGS84. Some light filtering was done on the line data prior to map preparation and 3D modelling. The reduced to pole calculation was not satisfactory and a reduced to equator (multiplied by -1) was generated as an equivalent result. Other products generated consist of an analytic signal map and a grey scale 1 st vertical derivative image. Two 3D magnetic models were calculated, one on the line data and a second one using the gridded data as source. In both cases a mesh size of 50m x 25m x 25m (X by Y by Z) was defined. The topography for the model was taken from the SRTM data. The software used for modelling is Geosoft s cloud based magnetic vector inversion method (MVI).

Survey information LOOKING NORTH WEST Line 6 Lines are 200 meters apart with stations every 10 meters. Line 31

Geology 1000 m Area covered by ground magnetics

Analytic signal magnetics The total range of magnetic intensity in the data is approximately 200 nt. The analytic signal product delineates the non-magnetic (blue), intermediate (green-yellow), and most magnetic responses (red). These three magnetic terrains roughly equate to sedimentary, volcanic and intrusive rocks respectively. 1000 m Area covered by ground magnetics

Magnetic results Reduced to equator times -1 (reduced to pole equivalent) Grey scale reduced to equator times -1 Mostly north-west striking magnetic lineaments in survey area. Clear (probably late) north-east striking faults (green arrows). In the south of the survey area the lineament direction is mainly east-west. Intermediate magnetic responses Lowest magnetic responses 1000 m Highest magnetic responses

Magnetic results 3D Geochemistry view of geology draped Magnetic on on Google model topography results image LOOKING NORTH EAST Geochemistry North-south striking (Pb) shown sections as through dots with the blue magnetic < 50 ppm model Pb at and 50 red meter > 500 spacing. ppm Pb. Color is distributed according to a histogram.

Section 395800E on the eastern edge of the geochemistry grid (comparison of models) LOOKING WEST 3D magnetic model result of the gridded data histogram color distribution. Small differences in model resolution 3D magnetic model result calculated from the line data histogram color distribution. Line data model clipped linear color. The range of magnetic amplitudes is small in the survey area. Even so, the models correlate well with surface mapping. One therefore can have some confidence that patterns in the model are useful to better understand the sub-surface geology.

395100E Magnetic model results Section 395100E LOOKING WEST Higher magnetics with some of the intrusives Low magnetic response associated with the sediments. Elevated magnetic associated with the volcanics. White lines are the positions of the sections I don t know what to make of the semicircular magnetic patterns associated with the Mitu and Pucara Group rocks in this section. The pattern is comparable to the expected shape of the Pucara group as drawn on some of the geological cross sections. This pattern is seen in only at the eastern end of the anomalous geochemistry, and nowhere else in the model. The magnetic model is colored linearly. The vertical thickness of every section is 600 meters. The blue lines are the position of the main faults on the geology map. The geochemistry (Pb) dots are colored with blue < 50 ppm and red > 500 ppm Pb.

394500E Magnetic model results Section 394500E LOOKING WEST Granite batholith modelled to be present underneath the southern limits of the Pucara in this section. This subtle break in the magnetic pattern could also be a place for drilling, rather than only testing the better geochemistry further to the north. The magnetic model is colored according to a histogram. The vertical thickness of every section is 600 meters. The blue lines are the position of the main faults on the geology map. The geochemistry (Pb) dots are colored with blue < 50 ppm and red > 500 ppm Pb. White lines are the positions of the sections

394150E Magnetic model results Section 394150E LOOKING WEST Robust east-west striking trends mentioned in slide 6. In this section the thickest/ deepest magnetic low pattern is associated with the Mitu. White lines are the positions of the sections The magnetic model is colored according to a histogram. The vertical thickness of every section is 600 meters. The blue lines are the position of the main faults on the geology map. The geochemistry (Pb) dots are colored with blue < 50 ppm and red > 500 ppm Pb.

393700E Magnetic model results Section 393700E LOOKING WEST Robust east-west striking trends mentioned in slide 6. The pattern that one would like to interpret as a potential source for mineralization. White lines are the positions of the sections The magnetic model is colored according to a histogram. The vertical thickness of every section is 600 meters. The blue lines are the position of the main faults on the geology map. The geochemistry (Pb) dots are colored with blue < 50 ppm and red > 500 ppm Pb.

393350E Magnetic model results Section 393350E LOOKING WEST White lines are the positions of the sections Very wide and depth extensive series of non-magnetic rocks. The magnetic model is colored according to a histogram. The vertical thickness of every section is 600 meters. The blue lines are the position of the main faults on the geology map. The geochemistry (Pb) dots are colored with blue < 50 ppm and red > 500 ppm Pb.

392700E Magnetic model results Section 392700E LOOKING WEST White lines are the positions of the sections The extensive zone of non-magnetic rocks mentioned in the previous slide is not prominent on this section. Keep in mind the histogram color distribution used for these sections. When plotted with a linear color distribution the area in the center of this section is shown to be still quite non-magnetic, exhibiting slightly elevated magnetic values in comparison to the previous section. The magnetic model is colored according to a histogram. The vertical thickness of every section is 600 meters. The blue lines are the position of the main faults on the geology map. The geochemistry (Pb) dots are colored with blue < 50 ppm and red > 500 ppm Pb.

392350E Magnetic model results Section 392350E LOOKING WEST White lines are the positions of the sections On this section the thickest portion of the nonmagnetic Pucara is located towards the north of the better geochemistry values. The magnetic model is colored according to a histogram. The vertical thickness of every section is 600 meters. The blue lines are the position of the main faults on the geology map. The geochemistry (Pb) dots are colored with blue < 50 ppm and red > 500 ppm Pb.

Comments Objective The objective of this work is to evaluate and interpret a ground magnetic survey done in central Peru. The geological target concept can be described as a Cordilleran type base metal system of the Cerro de Pasco style. This magnetic interpretation was done without discussion with geologists familiar with the project. It should be considered as a first pass evaluation of the geophysical measurements. Data The ground magnetic data is of acceptable quality given the difficult topography present on the project. There was no real need to filter the data extensively in order to remove noise. The range of magnetic intensity in the survey area is ~ 180 nt in the line data and ~100 nt in the gridded data, by no means representing a robust variation in magnetic amplitude. Results In spite of the small variation in magnetic intensities, the area can be divided into three magnetic terrains: an area of very low magnetic contrast, an area of slightly elevated magnetic values and a zone where the magnetic values measured are highest. These three terrains corresponds for the most part with the presence of sedimentary, volcanic and intrusive rocks (the batholith in this area) respectively. The small magnetic amplitudes measured in the survey area are not high enough to be confidently interpreted as magnetic skarns and/or pyrrhotite rich zones. Magnetic 3D models were generated on the line data and on the gridded data. That approach resulted in one model that is slightly more sensitive to near surface magnetic effects (the line data model), and another model (gridded data model) that probably is a better representation for the magnetic basement. Most of the magnetic model results shown in this presentation comes from the gridded data, in order to highlight subtle changes in the deeper portions of the model that can be related to surface mineralization. Also due to the low magnetic contrast present, a histogram color distribution is used most of the time, in order to better show subtleties in the magnetic model. Reference to a linear color distribution of the data though is necessary to get the true sense of the magnetite distribution. In a few places in the model feeder zones are tentatively interpreted by assuming that funnel like magnetic low patterns are representative of such a scenario. These are low confidence geophysical targets only to be tested by drilling if they can be supported by geological observation and/or geochemistry.

Conclusions The calculated magnetic models look reasonable and correlate well enough with mapped geology in spite of the low magnetic intensity measured in the survey area. There is no magnetic material associated with the mineralization nor with the host rocks in the vicinity of mineralization that can be used as a simple exploration guide. There are no robust magnetic anomalies that are obvious drill targets. Based on the magnetic model results some zones are pointed out as potentially feeder responses due to subtle funnel like patterns deeper in the sections. These are not robust signatures and they are low confidence interpretations.

General data information Software and file formats Most of the data and image processing was done with the Geosoft software package. Database files (*.gdb) and grid files (*.grd) are Geosoft products and can be opened with most geological and GIS software packages. Modeling of the magnetic data was done with Geosoft s cloud base Magnetic Vector Inversion (MVI) routine. More information on MVI can be found at the following link: http://www.geosoft.com/media/uploads/resources/technical-papers/magnetization_vector_inversion_mvi.pdf. 3D model results are written to ASCII, comma delimited files (x, y, z, z1 values) with *.csv extensions. This format can be imported into nearly all 3D packages. Other 3D model formats included with the data distribution are the Geosoft voxel format and the UBC 3D modelling software format. A 3D Viewer file with extension bin (see next slide) is also included. File naming information Chaska and Cha - all of the files generated during this interpretation start with these names. For the magnetic images: TMI stands for Total magnetic intensity, RTP means Reduced to pole, RTE_times-1 is for Reduced to equator multiplied by -1, 1VD is the 1 st vertical derivative and Ansignal refers to the 3D analytic signal product. Colorbar in the file name refers to the color legend that goes with the respective data. These files have the extension *.bmp, are bitmap images and can be opened with any photo editor. Depthslice means a slice cut from a 3D model at a specific depth below surface. Flat in the filename refers to an image without shading (good to overlay on other relief shaded images), lincol means an image is colored linearly (and clipped) and histcol refers to an image that is colored according to a histogram of the data distribution. Greyscale in the file name refers to grey scale images. Lev indicates that the grid has been decorrugated. Images The image files (*.tif) are geo-referenced images and can be opened with ArcGIS and Mapinfo as rasters/images (in older ArcGIS versions the projection needs to be defined for the image before opening). Not all of the products generated or used during the evaluation are shown in this presentation.

General data information Additional software to view the modeling results in 3D space There is one 3D model file included with this interpretation. It is called Chaska_magnetic_model_WGS84.bin and contains the 3D model results for the projects. Sections are presented in a north-south direction in 3D space for comparison with the topography, geology and geochemistry results that are included with the model file. The files that are necessary in order to view and manipulate a model in 3D space are: A model file (with extension *.bin) and the executable file called 3DViewer_5_05_install.exe (included but also freely available from the following site: http://www.scicomap.com/ 3Dviewer.htm). To view the models with 3DViewer Copy the files mentioned to a subdirectory. Click on 3DViewer_5_05_install.exe. This will install the software in a subdirectory of your choice. A desktop icon is also created. When installed, click on the desktop icon (or on the executable file 3DViewer in the subdirectory where the files are installed). When 3DViewer is running, click on File then Open model and then choose the model (*.bin file) that is to be loaded. Depending on the size of the model, it may take a bit of time load. The pull down menus of 3DViewer are easy to use. Use the circle arrow and hand icons to move the model to a desirable viewpoint and the +/- to get to a proper scale. Click on the Clip Planes menu option to cut through the model to any desired position (by using the Front/Back and Left/Right slider bars that open up), or by switching specific sections on and of (see below). Root and daughter layers can be switched on and off in the menu located on the far right of the display screen by clicking on the appropriate boxes or the plus signs for the daughter layers. Chargeability or resistivity can be chosen here for instance. Lines can also be selectively displayed with a line by line step sequence by providing the asked for information in the Define Section Window tab in the top menu bar.