By the end of 2011, Corporación Minera Centauro initiated its exploration activities at the Quicay Mine's neighboring area, named Pacoyán. In this sense, prospection programs were carried out with geological surveys and surface geochemical samplings of mineralized structures, oxidized rocks and quartz-alunite alteration. Based on the evidences found, in 2012 the first diamond drilling program started in the mentioned area. Between the years 2012 to 2013, Corporación Minera Centauro has accomplished a total of 44,347.55 meters drilled.

 

Through the results obtained from the drilling program, Corporación Minera Centauro was able to identify a porphyry copper-gold deposit. To the present, the discovery of a mineralized body of approximately 500 x 500 metres with depth up to 1,000 metres has been proven. This ore body is found at an average depth of 100 – 120 metres from the surface underneath a cover of moraine and lacustrine material.  Currently, the Quicay II deposit continues to be under delimitation process.

 

By the end of 2012, as part of the exploration agenda set by Corporación Minera Centauro, several Geophysical Studies were carried out. The Magnetometry Study was performed in a 7,000 has area, while the IP Titán Study was completed in a 2,500 has area. Through these studies, new anomalies were identified in the analyzed areas, representing new exploration targets.

 

In April 2013, preliminary metallurgical tests were conducted in a total of 300 kilos of samples, proceeding from 3 composites from three different zones of the Quicay II deposit: East, West and Hypogene area (below 500 metres). The conclusions drawn from this preliminary analysis included a rather docile ore for recovery, obtaining favorable recoveries of copper, gold and silver.

 

In May 2013, the Geotechnical Data Verification and Validation, assessing the geomechanics such as RQD and RMR (Bieniawski 1989) was carried out. Rock quality is found within the acceptable ranges, trending from regular (more than 60%) to good to very good rock quality – based on international ranges.

 

By the end of 2013, additional Geophysical Studies were conducted. The Magnetometry Study was executed in a 1,235.67 has, while the IP Titán study was in a 922.81 has. In these areas, a thorough analysis and interpretation were possible to accomplish, concluding in new exploration targets.

 

By midyear 2014, a Scoping Study for the Quicay II project was executed. The study includes the review of the available information with the identification of gaps, resource modeling review, plant capacity study, mine design, mine planning, process plant design, infrastructure, capital cost and operation cost estimation and project financial analysis, with a ±40% estimation level. Besides, an early analysis of the natural resources such as water, among others, and the potential environmental impacts related to the project are included.