UPKAR MINING SAC PERU

MINING PROJECT CHUCO II 2013

BACKGROUND
Upkar Mining SAC - Peru, is a subsidiary of Upkar Group of companies. Upkar Group of companies was established in the year 1972. With Its headquarters in Bangalore, India, dedicated in real estate development and mineral trading. Upkar Mining SAC was established in Peru in the year 2011. The organization is involved in prospecting, exploration and exploitation of potential mineral deposits and trading. The organization is operating on an iron ore project, Chuco II covering a licensed area of 1200 ha in Junn area. Upkar has all permits and approvals required to operate the project Chuco II.

LOCATION
Politically it is located in the annex of San Jos of Apata, district of Apata, county of Jauja, department of Junn, to 4260 m.s.n.m. Geographically it is located in the flank west of the central mountain range of the Andes, in the center of the Peru

ACCESSIBILITY
The concession area is accessible from Lima by a national highway till Apata in Jauja province and then by a mining road to San Jose village.
By Rail (cargo) Distance Time Observations (Km) (Hours) Mine Site - Railway loading point 22 0.75 Part dirt road and part asphalted in good condition Railway loading point - Callao Port Storage 301 10:00 Railway track in operation. Total 323 10.75 Route By Road (cargo) Route Mine Site - Apata Apata - Lima ( Callao Port ) Distance Time Observations (Km) (Hours) 20 01:00 Part dirt road and part asphalted in good condition. 250 08:00 Asphalted road in good condition. Total 270 09:00

ROADS ALTERNATIVES

DISTANCES BY TRAIN

Jauja

CALLAO PORT

PERU RAIL (CARGO)

Mining Concessin Chuco II

rea Total: 1200 Ha

REGIONAL GEOLOGY
The region is geologically covered by carbonate rocks, structurally deformed and subsequently meta morphosed to quartzites, phylitic schists belonging to Excelsior group of rocks belonging to lower paleozoic age.

LOCAL GEOLOGY
The geological formation of the concession are principally consists of carbonates, schists, phylites and quartzites intruded by andesite. The rock formation trend between 330 degrees to 360 degrees and dips sub vertical east.

The mineralization appears to have 2 phases: 1) SYNGENTIC: Characterized by veinlets, dissemination and stratified structures with low concentration of iron. This phase could be associated with sedimentation mainly in shales and sandstones, regional metamorphism resulted in reconcentration of iron ore deposits. 2) HYDROTHERMAL: The second phase may be hydrothermal mainly veins, stratiform structures which could have enriched by hydrothermal fluids. The presence in the central sector of Chuco, of reefs with massive iron mineralization could be due to a re-concentration of sedimentary iron through zones of structural weakness and / or a simultaneous or subsequent hydrothermal activity that helped the recovery and reconcentration of the mineral mass iron. It is very important to define some laboratory studies, the potential contribution to the origin of epigenetic mineralization of this deposit. since there intrusive feeders in depth not outcrop in present, the potential for veins of iron highest concentration, could increase substantially.

MINERALIZATION

Hematite porous, demonstrating formation gaseous environment

the Impressions of bivalves in claystones showing sedimentary basins environment

Hematite banded with white quartz

Hematite with pyrite, limonite and secondary fractures

Hematite veinlets in sandstones way stock Works

Hematite with banded white quartz and porous

ORE BODIES MAP

Pilar

Janet 2 Janet 1

Janet 3

Cuerpo 9
Magaly

DIAMOND DRILLING PRE PROJECT

DIAMOND DRILLING PRE PROJECT

OUTCROPS

ORE IN BENCHS

The iron mineralization Chuco, would have originated during the sedimentation in marine and lake basin where Fe ions were part of sedimentation and then during the transformation of sediments and sedimentary rocks then metamorphic rocks were reconcentrated following the direction of stratification in disseminated form, parallel or divergent veinlets and patches, syngenetic type. This process for the case of Chuco, seems to have been controlled by a thin sequence of sandstones and conglomerates sometimes likely remnants possibly contemporaneous igneous, where we observed this mineralization with N320 direction in a width of about 200 m in average length and 2,000 m between the sector and the southeastern boundary Pillar award Chuco II. However this without iron deposition is much more extensive as seen in different sectors of the Jauja sheet within the Excelsior group.

MINERALIZATION

Photo 1.- View NW: The strip highlights the syngenetic mineralization , explored by trenches (red lines delimit that strip). At the top are the pits of Pilar and Janet 1,2 and 3.

All Syngenetic Mineralization

GEOPHYSICS
Ground magnetic survey, which showed a strongly anomalous zone presumably underlain by iron ore concentration/mineralization. The geophysical survey indicates that potentially iron concentration or mineralization may increase towards the southern part of the concession area. However the magnetic data may have to be precisely modeled during detailed exploration Salva Resources: The Australian company estimated through a rigorous exploration study of 21 magnetic anomalies (area of 174240 m2) a potential of 375 Million Tons according to the following sizing.
The iron ore deposits of Chuco II is of hydrothermal origin, potentially skarn style of deposit with significant tonnage potential

Source : Upkar Mining Scoping Report, Nov. 2012

GEOPHYSIC ANOMALIES WITH TOTAL MAGNETIC FIELD

GEOPHYSICAL MAP - ANALYTICAL SIGNAL

GEOPHYSICAL MAP VERSUS MINING PROPERTIES

Adriana Pierina 100 Ha Ajedrez de Fierro 200 Ha

Karajal Mining 100 Ha Chuco II 400 Ha

Nueva ortaleza 100 Ha

The projection of the anomalies are oriented to the South East Chuco II, in this sense it has now acquired the property of 300 hectares Juanita XVI.

Juanita XVI 300 Ha

Mine Operation

General Arrangement (Existing)

UNIT OPERATIONS
ALL PHOTOGRAPHS ARE ACTUAL AND TAKEN AT MINE SITE

Evacuation organic material

Drilling

Loading of holes

Blasting

Loading

Transport and accumulation

CRUSHING AND STOCKPILE TO DATE

INFRASTRUCTURE
Cargo train enters directly into the callao port storage area.

Upkar has a 1.8 hectare storage area along with a new 60 ton weighbridge instaled at Jauja, opposite the jauja airport and 300 meters from the railway track

INFRASTRUCTURE

Camp site

Camps

Explosives storage

Security Posts

INFRASTRUCTURE

COMMUNITY RELATIONS

COMMUNITIES
2000ha

4000ha

2550ha

2620ha

1250ha

740ha

COMMUNITY RELATIONS

BADEN AND BRIDGE CONSTRUCTION IN SAN JOSE APATA COMMUNITY

SUPPORT TO COMMUNITY CHILDREN

SEED DELIVERY (FORAGE GRASS) SAN JOSE

VETERINARY DOCTOR AND MEDICINE PROVIDED FOR THE FARM OF THE COMMUNITY

PROFESSIONAL AND TECHNICAL ADVICE TO THE COMMUNITY

TOPOGRAPHIC SUPPORT TO THE COMMUNITY SCHOOL

TRAINING IN HEAVY MACHINERY TO THE YOUTH OF THE COMMUNITY SAN JOS

MAINTENANCE OF ROADS SAN JOS-APATA

VISITS OF THE COMMUNITY TO THE MINING PROJECT

MAIN AUTHORIZATIONS AND PERMITS

Environmental impact statement approved. 2013 Mining Operation Certificate approved. Certificate Continuing operations approved. Tinderbox Operating License. Global authorization for use of explosives. Convention Exploration and Mining: Community San Jos de Apata. Easement agreement and use of land surface: Community San Jos de Apata. Convention community water use San Jose Apata. Easement agreement: Nueva Esperanza Community.

Av. 28 de Julio 574 Of. 501 Miraflores Lima Per Telef. : +511-4458807 Movistar/RPM:+51 990997799 RPC: +51 987748577 Email: shkhan@upkarmining.com

Thank you